International Flavors & Fragrances, Inc. · NYSE:IFF
International Flavors & Fragrances — Barclays Back-to-School Conference 2009
24 slides from International Flavors & Fragrances's conference presentation, Sep 9, 2009
Slide 1: Barclays BTS Conference
September 9, 2009 Barclays BTS Conference Barclays BTS Conference Rob Amen, Chairman & CEO Rob Amen, Chairman & CEO
Slide 2: Cautionary Statement
Cautionary Statement Statements made in this presentation that relate to future performance or financial results of this company are forward-looking statements, which involve uncertainties that could cause actual performance or results to materially differ. We undertake no obligation to update any o
Slide 3: Agenda
Snapshot of Industry IFF Overview Strategic Approach Financial Highlights Conclusion Snapshot of Industry IFF Overview Strategic Approach Financial Highlights Conclusion Agenda
Slide 4: Global Consumer Products
*Barclays BTS Conference 4 Global Consumer Products
Slide 5: Flavor & Fragrance Industry
*Barclays BTS Conference 5 Flavor & Fragrance Industry Approximately $14 Billion Industry 4 Largest Companies Comprise About 70% of Global Market Key To Building Consumer Preference & Brand Differentiation Demand Driven by Growth of Consumer Products & Innovation • Approximately $14 Billion Industry
Slide 6: Structural Drivers of Growth
*Barclays BTS Conference 6 5 Billion People in Developing Market Increasing Disposable Income Breakthroughs & Advancements Structural Drivers of Growth 5 Billion People in Developing Market Increasing Disposable Income Breakthroughs & Advancements Population Population Growing Middle Class Growing M
Slide 7: IFF Profile
*Barclays BTS Conference 7 IFF Profile Global Flavor & Fragrance Leader for Over 100 Years Leading Innovator for a Wide Variety of Consumer Products Work With Virtually All Global & Regional CPG Companies Sales, Creative & Manufacturing in Over 30 Countries • Global Flavor & Fragrance Leader for Ove
Slide 8: Product Categories
*Barclays BTS Conference 8 Savory Beverages Sweet Dairy Fine & Beauty Functional Fragrance Ingredients Product Categories Savory Beverages Sweet Dairy Fine & Beauty Functional Personal Wash Fabric Care Home Care Personal Wash Fabric Care Home Care Fragrance Ingredients Fragrances Fragrances Flavors
Slide 9: Diversified Global Portfolio
*Barclays BTS Conference 9 Ingredients Functional Fragrances Fine Fragrance & Beauty Care Flavors North America EAME Latin America Greater Asia Diversified Global Portfolio 2008 Sales $2.4 Billion 2008 Sales $2.4 Billion Over 40% of Revenue Generated From Developing Markets Over 40% of Revenue Gener
Slide 10: Strong Financial Performance
*Barclays BTS Conference 10 * Excluding non-recurring items Strong Financial Performance * Excluding non-recurring items 2006 to 2008 CAGR 2006 to 2008 CAGR Results In-line With Our Long-Term Targets Results In-line With Our Long-Term Targets
Slide 11: Maximizing Shareholder Value
*Barclays BTS Conference 11 About $1.1 Billion Maximizing Shareholder Value Focused on Cash Returned to Shareholders Accelerated Share Repurchase Program Consistent Dividend Payout Value Returned To Shareholders Value Returned To Shareholders About $1.1 Billion Repurchases Dividends • Focused on Cas
Slide 12: Value Creation Model
*Barclays BTS Conference 12 Value Creation Model Research & Development Creative Expertise Consumer & Brand Understanding • Research & Development • • Creative Expertise • • Consumer & Brand Understanding •
Slide 13: Research & Development
*Barclays BTS Conference 13 Research & Development 170 Scientists 90 PhDs 320 Application Employees Over 200 Patents In the Last Decade • 170 Scientists • • 90 PhDs • • 320 Application Employees • • Over 200 Patents In the Last Decade •
Slide 14: Consumer & Brand Understanding
*Barclays BTS Conference 14 Consumer & Brand Understanding Approximately 100 Dedicated Professionals 400,000 Consumer Interviews Annually Unique Tools & Methodologies • Approximately 100 Dedicated Professionals • • 400,000 Consumer Interviews Annually • • Unique Tools & Methodologies •
Slide 15: Creative Expertise
*Barclays BTS Conference 15 Creative Expertise 14 Creative Centers 80 Flavorists 90 Perfumers Perfumery & Evaluation School • 14 Creative Centers • • 80 Flavorists • • 90 Perfumers • • Perfumery & Evaluation School •
Slide 16: Executional Excellence
*Barclays BTS Conference 16 Executional Excellence Drive Efficiency in All That We Do Global Strategy to Support Business Growth Positive Leverage to Overall Results • Drive Efficiency in All That We Do • • Global Strategy to Support Business Growth • • Positive Leverage to Overall Results •
Slide 17: Value Creation Model
*Barclays BTS Conference 17 Value Creation Model Successfully Creating Consumer-Preferred Products Successfully Creating Consumer-Preferred Products
Slide 18: H1 2009 Results
*Barclays BTS Conference 18 Solid Net Commercial Performance Disciplined Cost Focus Positive Benefits From Taxes & Interest Expense H1 2009 Results Below Trend Line Demand Significant Raw Material Cost Increases Unfavorable Foreign Exchange Comparisons Negatives Negatives • Solid Net Commercial Perf
Slide 19: Update On 2009 Key Cost Components
*Barclays BTS Conference 19 Raw material pressure will lessen in H2 Cost reduction initiatives progressing Foreign exchange comparables easing in H2 Update On 2009 Key Cost Components Input Costs: Input Costs: Raw material pressure will lessen in H2 H1 ‘09 Impact H1 ‘09 Impact Balance of Year Expect
Slide 20: Q3 Highlights and Favorable Outlook
*Barclays BTS Conference 20 Q3 Highlights Stronger than Expected Local Currency Sales Flavors continuing year over year growth trend Meaningful improvement in Functional Fragrances & Ingredients Weakness in Fine continues, but has improved from H1 2009 Favorable Outlook Favorable Outlook • − − −
Slide 21: 2009 Perspective
*Barclays BTS Conference 21 2009 Perspective Encouraged With Our YTD Performance Sustaining Strategic Focus While Managing Through Challenging Conditions Building Positive Momentum Heading into 2010 2009 Perspective • Encouraged With Our YTD Performance • • Sustaining Strategic Focus While Managing
Slide 22: Financial Vision: Long Term Targets
*Barclays BTS Conference 22 4+% 18+% 10+% Sales (local currency) Operating Margin EPS Growth (adjusted) Grow Dividend In-line With EPS Financial Vision 4+% 18+% 10+% Sales (local currency) Operating Margin EPS Growth (adjusted) Grow Dividend In-line With EPS Goal Goal Metric Metric Long Term Targets
Slide 23: Conclusion
*Barclays BTS Conference 23 23 Conclusion Global Leader Supporting Growth In Consumer Products Technology Leader In Molecule Discovery & Delivery Systems Established Product Development Partner With Key Global & Regional Companies Strong Position In the Emerging Market Strong Financially Conclusion
Slide 24: Questions
Questions
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