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2017
CAGNY
Conference
Andreas Fibig
Chairman & CEO
1. Introduction
2. Strategic Vision
3. Changing Landscape
4. Research & Development
5. Financial Perspective
Agenda
1. Introduction
2. Strategic Vision
3. Changing Landscape
4. Research & Development
5. Financial Perspective
Insight Into Our Market
Estimated 2016 market size: ~$20B; growing 2 to 3% per year to 2020
Category Breakdown Market Growth Rates
Cosmetic 4.5%
Actives
8%
Fragrance
Ingredients
14%
Flavors 2.5%
Compounds
46% 2.0%
1.5%
Fragrance
Compounds
32%
Fragrance Fragrances Flavors Cosmetic
Ingredients Compounds Compounds Actives
Note: Total 2016 market potential of ~$20B based on Company estimates using 2015 market data and assuming Company estimates of category growth rates shown above
Well-Positioned Within Our Industry
Estimated market share summary as of 2016
Flavors & Fragrances Cosmetic Actives
Croda
BASF 7%
10%
Givaudan
Other
DSM
25% 5%
31%
IFF
Other 4%
52% Lonza
IFF 4%
Symrise 16%
Bioland
12% 4%
Firmenich
16% Symrise
4%
Gattefosse Silab Givaudan
Note: Based on Company estimates 3% 3% 4%
Introduction To IFF
Leading provider of sensorial experiences
6 42 70
Creative &
75%
R&D Manufacturing Sales
centers facilities Application Centers outside North America
1. Introduction
2. Strategic Vision
3. Changing Landscape
4. Research & Development
5. Financial Perspective
Long-Term Strategic Vision
Framework to achieve continuous growth
Vision 2020
We are the catalyst for discoveries that spark the senses and transform the everyday
Continuously Improving
+55% +69%
+31%
CAGR
2011 2012 2013 2014 2015 2016 2013 2014 2015 2016 2017E 2018E
Note: Reflects growth of currency neutral net sales Regulatory High Impact Performance Specialty Value
Win Where We Compete
Key strategic markets of North America, Africa & Middle East driving growth
EAME +4%
Greater
Asia +4%
North
America +7%
Latin
America+2%
Note: Currency neutral net sales growth for June 2015 to December 2016
Customers Partner Of Choice
Strengthening go-to-market approach via commercial excellence programs
Fragrances Flavors
Standardizing go-to-market approach Driving cohesive image centered on innovation
Leadership
Strengthened leadership
development programs and 82 33
Development embedded talent and execution Graduates Graduates
objectives for senior leaders Since Inception In Class of 2016
Talent
Pipeline Advanced our best-in-class pipeline IFF Perfumery
R&D Leadership Seasonings
with 7 technical schools School Flavorist
Academy
+ School
Continuously Improving
Strong productivity savings across a multitude of functions
Procurement
2
Manufacturing +5.5 ppt
Contribution to 2016
3 4 currency neutral
Planning
Creative
& Logistics
adjusted operating
profit growth*
Note: Currency Neutral Adjusted Operating Profit is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at ir.iff.com
Progress In Sustainability
Accelerated our commitments & driving results
We committed to: We achieved: 2020 Environmental Our 2015 Progress
Sustainability Goals (vs. 2010 Baseline)
COP 21 Paris CDPs Climate A list
Climate Agreement Reduce energy
for the second year
use by 20% (12.2)%
United Nations
Global Compact EcoVadis Gold Reduce GHG
CSR Rating emissions by 25% (17.8)%
Naturals
Certifications Reduce water
Euronext Vigeo use by 50% (39.5)%
US Top 50
Renewable
Energy
Reduce hazardous
Newsweek Green Rankings: waste by 25% (16.8)%
Responsible top 100 Green Companies in U.S.
Supply Chain
1. Introduction
2. Strategic Vision
3. Changing Landscape
4. Research & Development
5. Financial Perspective
External Environment Assessment
Implications on our industry and business going forward
Key Themes Data Points
1 Global consumer staple companies Average of volume growth
Customer signaling low volume growth expectations. for largest CPG companies:
Increased focus on margin improvements 2013A: ~2.5% | 2016E: ~0%
22
Commitment To Maximizing Shareholder Value
Driving sustainable improvements across our key organic financial metrics
Adjusted Adjusted
Sales*
Operating Profit* EPS*
10%
7 - 9%
4 - 6% 5 - 6%
4 - 5%
3 - 4% 4%
3%
2%
* Currency Neutral Sales, Currency Neutral Adjusted Operating Profit and Currency Neutral Adjusted 23
EPS are Non-GAAP metrics, please see our GAAP to Non-GAAP Reconciliation at ir.iff.com
IFF
2017
CAGNY
Conference
Greg Yep
EVP, Chief Scientific &
Sustainability Officer
February 23, 2017
Agenda
1. Introduction
2. Strategic Vision
3. Changing Landscape
4. Research & Development
5. Financial Perspective
Insight Into Research & Development
Building competitive advantage takes commitment & a proven strategy
MANAGING CREATING
the Present the Future
Current Future
H Flavor Fragrance
Modulation Delivery
Strategic Importance
Flavor
Naturals
Flavor Fragrance
Fragrance Delivery Naturals
Ingredients
Fragrance
Malodor
Generation: 1 2 3 4 5 6
Description: First capsule Improved Improved Targeted Improved Improved
to market base stability retention on personal care release for deposition &
fabric & skin applications fabric apps adhesion to
hair, fabric
and skin
Fabric:
Home:
Personal:
Fine:
Key Flavor Innovations
Delivering differentiated solutions to our customers
Alcohol
Tray/ Vacuum Dry: Solution:
Traditional process Ensures greater
to remove water taste authenticity Protein
from a wet solid vs. traditional drying
Innovation Within Cosmetic Actives
Award-winning selection of ingredients
1. Introduction
2. Strategic Vision
3. Changing Landscape
4. Research & Development
5. Financial Perspective
Strong Financial Profile
Foundation built for growth
+5%*
5-Year Currency
20.0%*
2016 Adjusted
Neutral Sales CAGR Operating Profit Margin
17.2%
2016 Operating
17.6%*
2016 Adjusted Return
Cash Flow as % of Sales on Invested Capital
* Currency Neutral Sales, Adjusted Operating Profit Margin and Adjusted Return on Invested Capital
(ROIC) are Non-GAAP metrics, please see our GAAP to Non-GAAP Reconciliation at ir.iff.com
Long-Term Strategic Vision
Framework to achieve continuous growth
Vision 2020
We are the catalyst for discoveries that spark the senses and transform the everyday
Continuously Improving
Currency neutral
sales growth 4-6%
Currency neutral
operating profit growth 7-9%
Currency neutral
EPS growth 10%
Strong Capital Allocation Strategy
Three primary uses of cash
Capital
Capital
Expenditures
Expenditures
Financial Cash
Acquisitions Returned to
Flexibility Shareholders
Capital Expenditures To Support Organic Business
Investing in technology and infrastructure
Capex as % of sales to be
4.5% - 5.0% in 2017 & 2018;
normalizing to 3.5% by 2020
Accelerate Growth Through M&A
Enhancing organic results for greater value creation
On target to add
$500M to $1B of sales
via acquisitions by 2020
Improving Shareholder Return
More compelling total payout ratio
Cash returned to
shareholders goal
50-60%
of adjusted net income*
* Adjusted net income is a Non-GAAP metric, please see our GAAP
to Non-GAAP Reconciliation at ir.iff.com
FY 2016 Financial Performance
Achieved growth across all metrics
Sales
Sales Adjusted
Growth * Operating Profit Growth* EPS Growth*
Adjusted
Growth* Operating Profit EPS*
Growth*
* Currency Neutral Sales, Currency Neutral Adjusted Operating Profit and Currency Neutral Adjusted
EPS are Non-GAAP metrics, please see our GAAP to Non-GAAP Reconciliation at ir.iff.com
Cash Flow Analysis
Continue to generate strong operating cash flows
2015 2016
Cash Returned To Shareholders
Commitment to a strong payout ratio
Adjusted* Impact of
Adjusted*
Currency Neutral Currency
Adjusted Adjusted
Sales*
Operating Profit* EPS*
10%
7 - 9%
4 - 6% 5 - 6%
4 - 5%
3 - 4% 4%
3%
2%
* Currency Neutral Sales, Currency Neutral Adjusted Operating Profit and Currency Neutral Adjusted 49
EPS are Non-GAAP metrics, please see our GAAP to Non-GAAP Reconciliation at ir.iff.com
Summary
Q&A