IFF Sept 2016 Presentation

INTERNATIONAL FLAVORS & FRAGRANCES
IFF 2016
Barclays
Back to School
Conference
Alison A. Cornell
EVP & CFO
September 8, 2016
Cautionary Statement
Statements made in this presentation that relate to our future performance or future financial results or other future events (identified by such terms as expect, anticipate,
believe, outlook, guidance, may, should, target or similar terms and variations thereof) are forward-looking statements, including the Companys 2016 guidance, its longterm financial guidance, and the Companys expectations regarding the impact of its 2020 strategy on its financial and operational results, including its ability to fund through costsavings and the impact of acquisitions. These statements are based on our current beliefs and expectations and are subject to significant risks and uncertainties. Actual results
may materially differ from those set forth in the forward-looking statements. Factors that could cause IFFs actual results to differ materially include (1) macroeconomic trends
affecting the emerging markets; (2) the Companys ability to implement its Vision 2020 strategy; (3) the Companys ability to benefit from its investments and expansion in emerging
markets; (4) the impact of currency fluctuations or devaluations in the principal foreign markets in which the Company operates, including the devaluation of the Euro; (5) risks
associated with the Companys supply chain, including availability and pricing of raw materials, energy and transportation; (6) economic, regulatory and political risks associated
with the Companys international operations; (7) changes in consumer demand, either due to changes in preferences or consumer confidence; (8) the Companys ability to identify
and complete acquisitions in line with its Vision 2020 strategy and to realize the anticipated benefits of those acquisitions; (9) the Companys ability to realize expected cost savings
and efficiencies from its profitability improvement initiative and other optimization activities; (10) any adverse impact on the availability, effectiveness and cost of the Companys
hedging and risk management strategies; and (11) the Companys ability to successfully develop new and competitive products and technology that appeal to its customers and
consumers as well as those risks described in the Risk Factor forward-looking statements sections of our Annual Report on Form 10-K for the year ended December 31, 2015 and
in our other periodic reports filed with the SEC, all of which are available on our website at ir.iff.com. We do not undertake to update the forward-looking statements to reflect the
impact of circumstances or events that may arise after the date of the forward-looking statements. We have disclosed certain non-GAAP measures within this presentation. Please
see reconciliations to their respective measures prescribed by accounting principles generally accepted in the U.S., all of which are available on our website, at ir.iff.com.
International Flavors & Fragrances Barclays Back to School Conference September 8, 2016
Agenda
1. Industry Overview
2. IFF Vision 2020 Strategy
3. Financial Perspective
Industry Overview
Estimated market size as of 2015: ~$19.5B growing 2 to 3% per year to 2020

Category Breakdown
Market Growth Rates
4.5%
Cosmetic
Actives
8%
Fragrance
Ingredients
14%
2.5%
Flavors
Compounds
46%
2.0%
1.5%
Fragrance
Compounds
32%
Fragrance
Ingredients
Fragrances
Compounds
Flavors
Compounds
Source: Company Estimates
Cosmetic
Actives
Strong Competitive Dynamics
Update Cosmetic Actives w/

GIV
Estimated market share summary as of 2015
Cosmetic Actives
Flavors & Fragrances
BASF
10%
Givaudan
Other
DSM
5%
25%
31%
Croda
7%
IFF
4%
Other
52%
Lonza
4%
IFF
16%
Symrise
12%
Bioland
4%
Firmenich
16%
Symrise
4%
Gattefosse
3%
Source: IAL Consultants; Morgan Stanley; Company Estimates
Silab
3%
Givaudan
4%
5
Key Fundamentals
4 notable distinctions of the industry
Core Lists
Access to compete
for new business
Pricing
Reengineered based
on margin profile
Briefs
Customer request
an individual product
Winning
Success driven by
consumer preference
Value Proposition of our Products
Smallest cost represents greatest driver of repeat purchase
Scent
78%
Taste
45%
Brand 30%
F&F cost represents approximately

1% to 5% of total product cost
Yet the taste or scent profile is the
primary driver of repeat purchases
Experience 8%
Brand 5%
Price 15%
Image 3%
Other 6%
Packaging 10%
Fragrances
Flavors
Greatest value opportunity for a CPG

company to drive brand innovation
Source: AC Nielsen & Company Estimates
Introduction to IFF
Leading provider of sensorial experiences
Taste
Smell
Touch
Beverage
Perfumery
Skin Care
Savory
Beauty Care
Hair Care
Sweet
Fabric Care
Cosmetics
Dairy
Home Care
Personal Care
IFF by the Numbers
Innovation driven global organization
33
34
51
77%
R&D
centers
Creative
centers
Manufacturing
facilities
Years
on NYSE
Sales
outside US
3,000
6,700
38,000
Customers
Employees
Unique products
sold annually
$11B
Market
cap
Highly Diversified Business
Balanced mix across categories, regions & customers

Category
48%
Region
52%
Fragrances
Flavors
49%
Customer
51%
50%
Emerging Markets
Developed Markets
50%
Global
Regional
10
Proven Financial Track Record

Robust performance between 2010 to 2015
Strong Growth
Dynamics
+5%
Proven
Profitability
Excellent Cash
Flow Generation
Industry-Leading
Returns
+320bps +690bps +100bps
Currency Neutral
Sales CAGR*
Adjusted
Operating Profit Margin*
Adjusted Operating
Cash Flow (% of Sales)*
Adjusted
ROIC*
$3.0B
20.2%
15.1%
19.7%
* Non-GAAP metrics: please see our GAAP to Non-GAAP reconciliation at ir.iff.com
11
Clear Strategic Direction

Its all about accelerated growth
Vision 2020
We are the catalyst for discoveries that spark the senses and transform the everyday
Innovating
Firsts
Win Where
We Compete
Become Customers
Partner of Choice
Strengthen &
Expand the Portfolio
Drive differentiation
in key technologies
Lead in key markets
Actively support our

customers' success
Strengthen the F&F core
Achieve commercial
excellence & service
leadership
Pursue partnerships &

collaborations
Develop responsible
products to meet the
future needs of our
customers & consumers
Close gaps across value

enhancing categories
Achieve #1 position with

targeted customers
Stretch into adjacencies
Building Our Talent and Organization

Continuously Improving
Creating a Sustainable Future

12
Innovating Firsts: Science-Based Solutions

Investing approximately 8% of sales in R&D annually
Understanding
Consumer Trends
Factoring in
Customer Imperatives
Building Key
R&D Platforms
Performance
Long-Lasting Experience
Delivery Systems
Health & Wellness
Healthier Products
Modulation
Natural/Organic
Clean Labels
Naturals
Value
Affordability
New Molecules
Sustainability
Supply Chain Transparency
IFF LMR
13
Innovating Firsts: Delivery Systems

Fragrance encapsulation primary driver of growth
+18% CAGR
2011
2012
2013
2014
Note: In reported currency (USD)
2015
14
Innovating Firsts: Modulation
Sweetness & savory modulators up strong double-digits
+55% CAGR
2011
2012
2013
2014
Note: Excludes the impact of year-over-year changes in currency
2015
15
Innovating Firsts: Naturals
Natural flavors growth continues to accelerate
+163% CAGR
2011
2012
2013
2014
Note: Excludes the impact of year-over-year changes in currency
2015
16
Innovating Firsts: New Molecules
Rapidly expanding our Fragrance captive ingredient portfolio
2013
Regulatory
2014
High Impact
2015
2016E
Performance
2017E
2018E
Specialty
Value
Note: Estimated as of January 2015
17
Win Where We Compete
Targeting market leadership in key markets
China
North
America
Africa &
Middle East
18
Customers Partner of Choice

Building commercial excellence
Fragrances
Flavors
Standardize playbook globally for

end-to-end review of
commercialization process to
capture Commercial Best Practices
Defined process & selected

innovation programs to increase
go-to-market effectiveness
19
Strengthen & Expand Portfolio

Completed two acquisitions in 2015
Became #2 in Flavors North America
Increased capabilities to serve small

and mid-sized customers
Ability to leverage go-to-market
platform across other regions
Entry into an attractive, more profitable

& faster-growing market
Strong fit with IFF via customer
relationships and R&D
Foundation to build critical mass
20
Talent & Organization
Investing in our talent both now and for the future

Workforce
Planning
Integrated process to generate

intelligence to forecast and plan IFFs
talent requirements and investment
Recruiting
Established our Multipronged

Recruitment Strategy to connect
with top external talent pools
Leadership
Development
Strengthened leadership
development programs and
embedded talent and execution
objectives for senior leaders
Talent
Pipeline
Advanced our best-in-class pipeline

with 7 technical schools
82
Graduates
Since Inception
R&D Leadership
Academy
IFF Perfumery
School
+
33
Graduates
In Class of 2016
Seasonings
Flavorist
School
21
2015 Sustainability
Performance Highlights
We committed to:
We achieved:
2020 Environmental
Sustainability Goals
Our 2015 Progress

(vs. 2010 Baseline)
Achieved 100 and an A,

by CDP for carbon
performance and
disclosure
Reduce energy use by

20%
-12.2%
United Nations Global

Compact
For Life certifications

for several naturals
Reduce GHG
emissions by 25%
-17.8%
Papal encyclical, a case for

business action on climate
change
RSPO certifications
for multiple facilities
Reduce water use by

50%
-39.5%
American Business Act on

Climate Pledge
EcoVadis
Gold CSR
Rating
Reduce hazardous
waste by 25%
-16.8%
COP 21 Paris Climate

Change agreement
Reduced greenhouse gas emissions intensity by 7% in 2015
We initiated partnerships with:

22
2016 to 2020 Organic Long-Term Targets

Focused on creating long-term shareholder value
Currency neutral
sales growth*
Currency neutral
operating profit growth*
Currency neutral
EPS growth*
4-6%
7-9%
10%
* Non-GAAP metric
23
Accelerate Growth Through M&A
Enhancing organic results for greater value creation
Targeting $500M
to $1B of sales via
acquisitions by 2020
24
Improving Shareholder Return

More compelling total payout ratio
Cash returned to
shareholders goal
50-60%
of adjusted net income*
* Non-GAAP metric
25
Maximizing Capital Allocation

Delivering on our commitments
Philosophy
Cash Returned to Shareholders
Maintain financial flexibility

Remain investment grade rating
Balanced mix between dividends & buybacks
66%*
$350
$300
60%
53%*
45%*
$250
70%
50%
$122
$200
Priorities
Continue to reinvest in business
$150
Pursue value enhancing M&A
$100
Return of excess cash to shareholders
$50
29%*
40%
31% *
$88
30%
$51
20%
$103*
$115
$133
$90
2011
2012
2013
2014
$159
10%
$0
0%
Dividends
Share Repurchases
* Non-GAAP metrics: please see our GAAP to Non-GAAP reconciliation at ir.iff.com
2015
Payout Ratio
26
Summary
Competitively Advantaged Organization
High-Quality Investment
Clear Strategic Direction
Strong Financial Aspirations

27
INTERNATIONAL FLAVORS & FRAGRANCES
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INTERNATIONAL FLAVORS & FRAGRANCES

Estimated market size as of 2015: ~$19.5B growing 2 to 3% per year to 2020

Market Growth Rates

Strong Competitive Dynamics

Update Cosmetic Actives w/

Estimated market share summary as of 2015

Flavors & Fragrances

4 notable distinctions of the industry

Value Proposition of our Products

Smallest cost represents greatest driver of repeat purchase

F&F cost represents approximately

Greatest value opportunity for a CPG

Leading provider of sensorial experiences

IFF by the Numbers

Innovation driven global organization

Highly Diversified Business

Balanced mix across categories, regions & customers

Proven Financial Track Record

+320bps +690bps +100bps

Clear Strategic Direction

Lead in key markets

Actively support our

Strengthen the F&F core

Pursue partnerships &

Close gaps across value

Achieve #1 position with

Stretch into adjacencies

Building Our Talent and Organization

Creating a Sustainable Future

Innovating Firsts: Science-Based Solutions

Health & Wellness

Supply Chain Transparency

Innovating Firsts: Delivery Systems

Innovating Firsts: Modulation

Sweetness & savory modulators up strong double-digits

Innovating Firsts: Naturals

Natural flavors growth continues to accelerate

Innovating Firsts: New Molecules

Rapidly expanding our Fragrance captive ingredient portfolio

Win Where We Compete

Targeting market leadership in key markets

Customers Partner of Choice

Standardize playbook globally for

Defined process & selected

Strengthen & Expand Portfolio

Became #2 in Flavors North America

Increased capabilities to serve small

Entry into an attractive, more profitable

Talent & Organization

Investing in our talent both now and for the future

Integrated process to generate

Established our Multipronged

Advanced our best-in-class pipeline

Our 2015 Progress

Achieved 100 and an A,

Reduce energy use by

United Nations Global

For Life certifications

Papal encyclical, a case for

Reduce water use by

American Business Act on

COP 21 Paris Climate

Reduced greenhouse gas emissions intensity by 7% in 2015