International Flavors & Fragrances, Inc. · NYSE:IFF
International Flavors & Fragrances — Investor Day (June 2015)
70 slides from International Flavors & Fragrances's investor day presentation, Jun 2, 2015
Slide 1: Michael DeVeau, VP Global Communications & Investor Relations
Michael DeVeau VP, Global Communications & Investor Relations
Slide 2: Cautionary Statement
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”, “target” or similar terms and variations thereof) are forwa
Slide 3: Andreas Fibig, Chairman and Chief Executive Officer
Andreas Fibig Chairman and Chief Executive Officer
Slide 4: Vision 2020 Accelerating Growth
Vision 2020 Accelerating Growth
Slide 5: 5-Year CAGR
5-Year CAGR Currency neutral sales* +6% Adjusted operating profit* +11% Adjusted EPS* +14% Currency Neutral Sales, Adjusted Operating Profit and Adjusted Diluted EPS are Non-GAAP metrics, please see our GAAP to Non-GAAP Reconciliation at IFF.com.
Slide 6: Top-Quartile Total Shareholder Return
$117 June 1, 2015 17% CAGR Top-Quartile Total Shareholder Return $53 March 15, 2011
Slide 7: Consumer Dynamics Are Changing
Consumer Dynamics Are Changing
Slide 8: What if?
What if? rrr
Slide 9: We are the catalyst for discoveries that spark the senses
“We are the catalyst for discoveries that spark the senses & transform the everyday”
Slide 10: Win Where We Compete
Win WhereWe Compete Defi ned as #1 or #2
Slide 11: Innovating Firsts
Innovating Firsts Drive differentiation in key technologies
Slide 12: Become Our Customers' Partner of Choice
BecomeOur Customers’ Partnerof Choice Go-to supplier
Slide 13: Invest in People
Investin People
Slide 14: Fund the Journey
me, ‘SS | Fund the] ae | & }
Slide 15: Create a Sustainable Future
Createa Sustainable Future
Slide 16: Vision 2020 Strategic Pillars
Vision 2020Accelerating Growth Strategic Pillars Win Where1 We Compete Innovating 2 Firsts Become Our Customers’ 3 Partner of Choice Strengthen &4 Expand Portfolio
Slide 17: Matthias Haeni, Group President, Flavors
Matthias Haeni Group President, Flavors
Slide 18: Vision 2020 Accelerating Growth
Vi 2020 Accelerating Growth
Slide 19: Strong Financial Foundation
Strong Financial Foundation 5-Year CAGR 10% 7% Currency Adjusted Operating Neutral Sales* Profit Growth*
Slide 20: Expansion in Key Markets
Expansion in Key Markets
Slide 21: Consumer Dynamics Are Changing
Consumer Dynamics Are Changing
Slide 22: What if?
What if? rrr
Slide 23: Become our Customers' Partner of Choice
Become our Customers’ Partner of Choice Leader in Strategic Insights Centers of Excellence Early Partnerships with Customers
Slide 24: Innovating Firsts
Innovating Firsts Modulation Delivery Systems Protein & Texture
Slide 25: Win Where We Compete
Where Win We Compete North America Africa & Middle-East Key Customers and Categories
Slide 26: Strengthen and Expand Portfolio
Strengthen and Expand Portfolio M&A, partnerships & collaborations
Slide 27: Invest in People & Science
Invest inPeople &Science Flavor to taste
Slide 28: Vision 2020 Accelerating Growth
Vi sion2020 Accelerating Growth
Slide 29: Nicolas Mirzayantz, Group President, Fragrances
Nicolas Mirzayantz Group President, Fragrances
Slide 30: Vision 2020 Accelerating Growth
Vi sion2020 Accelerating Growth
Slide 31: Strong Financial Foundation
Strong Financial Foundation 5-Year CAGR 12% 6% Currency Adjusted Operating Neutral Sales* Pro?t Growth* Currency Neutral Sales and Adjusted Operating Pro?t are Non-GAAP metrics, please see our GAAP to Non-GAAP Reconciliation at IFF.com.
Slide 32: Expansion in Key Markets
Expansion in Key Markets
Slide 33: Consumer Dynamics Are Changing
Consumer Dynamics Are Changing
Slide 34: What if?
What if? rrr
Slide 35: Innovating Firsts
Innovating Firsts Delivery Systems New Molecules Naturals Futures Project
Slide 36: Win Where We Compete
Win North America Africa & Middle East Where We China Compete Home Care Fine Fragrance
Slide 37: Become our Customers' Partner of Choice
Becomeour Customers’ Leader in Strategic Insights Centers of Excellence Partnerof Redesigned Creative Model Choice Early Customer Partnerships
Slide 38: Strengthen and Expand Portfolio
Strengthen and Expand Portfolio M&A Strategic Partnerships External Collaborations
Slide 39: Invest in People and Expertise
Invest Pobele"People, S Expertise
Slide 40: Vision 2020 Accelerating Growth
Vision2020 Accelerating Growth
Slide 41: Ahmet Baydar, SVP Research & Development
Ahmet Baydar Senior Vice President, Research & Development
Slide 42: Innovating Firsts
2020 Innovating Firsts IFr
Slide 43: Slide 43
Slide 44: What if?
What if? rrr
Slide 45: Modulation
Modulation Healthier products
Slide 46: Delivery
: Delivery Po Extended release
Slide 47: New Molecules
New Molecules Delivering novel ingredients
Slide 48: Naturals
Naturals Pure & sustainable
Slide 49: Protein and Texture
Protein and Texture
Slide 50: Talent is Critical to our Success
Talent isCritical to our Success
Slide 51: Strengthen and Expand Partnerships and Collaborations
Strengthen Prof. Linda B. Buck Nobel Laureate &Expand IFF Board of Directors Partnershipsand Prof. Leslie B. Vosshall Collaborations The Rockefeller University IFF Scientific Advisory Board Prof. Steven V. Ley, CBE Cambridge University, UK IFF Scientific Advisory Board Dr. Shekhar Mitra President, I
Slide 52: Innovating Firsts
2020 Innovating Firsts IFr
Slide 53: Rich O'Leary, Interim CFO
rrr Rich O’Leary Interim CFO
Slide 54: Vision 2020 Accelerating Growth
Vision 2020 Accelerating Growth
Slide 55: Excellent Financial Results
Excellent Financial Results 5-Year CAGR 14% 11% 10% target 6% 7-9% target 4-6% target Currency Adjusted Adjusted Neutral Sales* Operating EPS* Profit* Currency Neutral Sales, Adjusted Operating Profit and Adjusted Diluted EPS are Non-GAAP metrics, please see our GAAP to Non-GAAP Reconciliation at IF
Slide 56: Identifying Incremental Growth Initiatives
Identifying Incremental Growth Initiatives 1 Strategic Importance 2Execution Risk 3Value to Cost 4Payback Period
Slide 57: Driving Accelerated Organic Growth
Driving Accelerated Organic Growth Market 3% Growth Currency Neutral Sales 4-6% Growth
Slide 58: Fund the Journey
Fund theJourney
Slide 59: Unlock Value
Unlock Value Standardize global functions & business services Optimize global supply chain & facilities Realize greater procurement savings Implement zero-based budgeting
Slide 60: 2016 to 2020 Financial Targets
2016 to 2020 Financial Targets Currency neutral sales growth 4-6% Currency neutral operating 7-9% profit growth Currency neutral 10% EPS growth
Slide 61: Accelerate Growth Through M&A
Accelerate Growth Through M&A Targeting $500M to $1B of sales through acquisitions by 2020
Slide 62: Redefine Uses of Cash
Redefine Uses of Cash 3-3.5% of sales 50-60% of net income
Slide 63: Currency Neutral 2016 to 2020 Targets
Currency Neutral 2016 to 2020 Targets 4-6% 7-9% 10% Sales Operating EPS growth profit growth growth Targeting $500M to $1B of sales through acquisitions by 2020 Expect capex to be 3-3.5% Increase payout ratio to 50-60% of net income
Slide 64: Insight into Currency Impact
Insight into Currency Q1 2015A 7% Q2 2015E ~8% 2015E 4-5% 2016E 3-4% Impact to Pro?t Based on a Euro to USD exchange rate of 1.09
Slide 65: Q2 and FY Perspective
Q2 and FY Perspective Currency Currency Neutral Neutral Sales* Operating Profit* Q2 ~4% 6-8% 2015E FY 4-6% ~7% 2015E Currency Neutral Sales and Currency Neutral Operating Profit are Non-GAAP metrics, please see our GAAP to Non-GAAP Reconciliation at IFF.com.
Slide 66: Andreas Fibig, Chairman and Chief Executive Officer
Andreas Fibig Chairman and Chief Executive Officer
Slide 67: Vision 2020 Strategic Pillars
Vision 2020Accelerating Growth Strategic Pillars Win Where1 We Compete Innovating 2 Firsts Become Our Customers’ 3 Partner of Choice Strengthen &4 Expand Portfolio
Slide 68: Vision 2020 Enablers
Vision 2020Accelerating Growth Enablers Building Our Talent & Organization Continuous Improvement Creating a Sustainable Future
Slide 69: Currency Neutral 2016 to 2020 Targets
Currency Neutral 2016 to 2020 Targets 4-6% 7-9% 10% Sales Operating EPS growth profit growth growth Targeting $500M to $1B of sales through acquisitions by 2020 Expect capex to be 3-3.5% Increase payout ratio to 50-60% of net income
Slide 70: it #3
it #3
International Flavors & Fragrances — Investor Day (June 2015) on 6ix