International Flavors & Fragrances, Inc. · NYSE:IFF
International Flavors & Fragrances — Q4 2022 Earnings Presentation
22 slides from International Flavors & Fragrances's earnings presentation, Feb 9, 2023
Slide 1: Fourth Quarter & Full Year 2022 Earnings Conference Call
FOURTH QUARTER & FULL YEAR 2022 EARNINGS CONFERENCE CALL Updated as of February 27, 2023
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Statements in this presentation, which are not historical facts or information, are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current assumptions, estimates a
Slide 3: Non-GAAP Financials
NON-GAAP FINANCIALS We provide in this presentation non GAAP financial measures, including: (i) comparable currency neutral sales; (ii) adjusted operating EBITDA and comparable currency neutral adjusted operating EBITDA; (iii) adjusted operating EBITDA margin; (iv) adjusted EPS ex amortization; (v)
Slide 4: Today's Speakers
TODAY’S SPEAKERS Frank Clyburn Glenn Richter Michael DeVeau Senior Vice President, Executive Vice President, Chief Executive Officer Corporate Finance & Chief Financial Officer Investor Relations 4
Slide 5: Agenda
AGENDA Strategy Refresh ____ FY 2022 Results ____ Q4 2022 Performance ____ 2023 Outlook ____ Q&A 5
Slide 6: Strategy Refresh
STRATEGY REFRESH Implementing a growth-oriented strategy Targeting enhanced cost & productivity initiatives Simplifying operating model to align with end-markets Generating strong financial profile & leadership in ESG Advancing portfolio optimization Evolving Board & strengthening talent 6
Slide 7: Embed ESG+ in All That We Do
the Premier Our Future One IFF Partner EMBED ESG+ IN ALL THAT WE DO 7
Slide 8: Unlocking Incremental Value
AC H I E V I N G O U R F U L L P O T E N T I AL UNLOCKING INCREMENTAL VALUE KEY FOCUS AREAS 1 I M P R O V E S U P P LY C H AI N 5 D R I V E G R E AT E R P R O D U C T I V I T Y 2 E N H AN C E C O M M E R C I AL E X E C U T I O N 6 E N D - M AR K E T D R I V E N O P E R AT I N G M O D E L 3 G E O G R
Slide 9: FY 2022 Highlights
FY 2022 HIGHLIGHTS Sales Adjusted Operating Pricing $12.4B EBITDA¹ of $2.5B Actions Comparable currency Comparable currency neutral Achieved >$1B in price neutral sales ¹ ² +9% adjusted operating EBITDA¹ ² +4% increases to recover total inflation Productivity Portfolio Net Debt to Credit Benefits Op
Slide 10: FY 2022 Sales Performance
FY 2022 SALES PERFORMANCE S AL E S R E C O N C I L I AT I O N Year-over-year change Comparable Currency Neutral Sales¹ ²: +9% In Millions Health Fine Industrial Fragrance Jan ‘21 Flavors Cultures & Pharma N&B results Food Enzymes Consumer Ingredients Fragrance Microbial Control Animal Nutrition Dive
Slide 11: FY 2022 Profitability Performance
FY 2022 PROFITABILITY PERFORMANCE AD J U S T E D O P E R AT I N G E B I T D A¹ R E C O N C I L I AT I O N Year-over-year change Comparable Currency Neutral Adjusted Operating EBITDA¹ ²: +4% In Millions Jan ‘21 N&B results Microbial Control Divestiture $2,425 Fruit Prep $2,455 Divestiture Health Wrig
Slide 12: FY 2022 Segment Performance
FY 2022 SEGMENT PERFORMANCE NET ADJUSTED SALES O P E R AT I N G EBITDA¹ SEGMENT (Comparable (Comparable HIGHLIGHTS currency neutral currency neutral vs. vs. FY 21) ¹ ² FY 21) ¹ ² $6.8 billion $1.2 billion • Led by double-digit growth in Food Designs & Ingredients Nourish +11% +5% • Profitability dri
Slide 13: Q4 2022 Consolidated Results
Q4 2022 CONSOLIDATED RESULTS In millions / % of sales 2021 2022 C H AN G E Comparable currency neutral sales1 2 were +4%, with achieved across nearly all divisions ____ Revenue² $3,031 $2,844 (6)% Comparable currency neutral adjusted operating EBITDA1 2 declined 5% as strong pricing and productivity
Slide 14: Q4 2022 Sales Performance
Q4 2022 SALES PERFORMANCE S AL E S R E C O N C I L I AT I O N Year-over-year change Comparable Currency Neutral Sales¹ ²: +4% In Millions Health Fine Industrial Flavors Fragrance Cultures & Pharma Microbial Control Ingredients Food Enzymes Consumer Divestiture Fragrance $2,844 $3,031 Health Wright F
Slide 15: Q4 2022 Profitability Performance
Q4 2022 PROFITABILITY PERFORMANCE AD J U S T E D O P E R AT I N G E B I T D A¹ R E C O N C I L I AT I O N Year-over-year change Comparable Currency Neutral Adjusted Operating EBITDA¹ ²: (5)% In Millions Microbial Control Divestiture Health Wright Acquisition $529 $441 Q4 2021 Portfolio Total Price V
Slide 16: Q4 2022 Segment Performance
Q4 2022 SEGMENT PERFORMANCE NET ADJUSTED SALES O P E R AT I N G EBITDA¹ SEGMENT (Comparable (Comparable HIGHLIGHTS currency neutral currency neutral vs. vs. 4Q 21) ¹ ² 4Q 21) ¹ ² $1.6 billion $195 million • Strong growth in Food Design & Ingredients Nourish +4% (11)% • Price increases and productivi
Slide 17: FY 2022 Cash Flow & Leverage
FY 2022 CASH FLOW & LEVERAGE C AS H F L O W L E V E R AG E Cash flow from operations totaled $397 million Cash and cash equivalents finished at $535 million which includes $52 million currently in assets held for sale ____ ____ Capex was $504 million or ~4.1% of sales Gross debt totaled $10,987 mill
Slide 18: FY 2023 Consolidated Outlook
FY 2023 CONSOLIDATED OUTLOOK In millions or as % of sales FY 2023¹ Macro environment challenging, with a lot of uncertainty; Trajectory of consumer & customer unclear, Bullet resulting number one in limited volume growth Revenue ~$12.5B ____ ____ Inflationary trend continues – with greater volatilit
Slide 19: Insight into EBITDA Performance
FY 2023 INSIGHT INTO EBITDA PERFORMANCE AD J U S T E D O P E R AT I N G E B I T D A¹ R E C O N C I L I AT I O N Year-over-year change In Millions $2.46B $2.37B $2.37B $2.34B Reported Comparable 2023 Volume / Net Growth 2023 2022 Portfolio2 2022 Price Inflation Absorption Currency Currency Mix Produc
Slide 20: FY 2023 Operating Priorities
FY 2023 OPERATING PRIORITIES F O C U S AR E A AC T I O N P L AN Accelerate volume growth, targeted investments & 1 Accelerate sales growth successful pricing execution to offset inflation Enhance customer service Achieve target service levels & reduce inventories; 2 & supply chain efficiencies SIOP
Slide 21: Summary
SUMMARY Executed on pricing, productivity and portfolio optimization to generate strong sales growth, enhance profitability and reduce our debt in 2022 ____ Introduced a refreshed growth-focused strategy, that deepens our commitment to customers, prioritizes our highest-return businesses & expands p
Slide 22: IFF: Where science & creativity meet
iF f Where science & creativity meet
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