International Flavors & Fragrances, Inc. · NYSE:IFF
International Flavors & Fragrances — Q2 2022 Earnings Presentation
19 slides from International Flavors & Fragrances's earnings presentation, Aug 9, 2022
Slide 1: Second Quarter 2022 Earnings Conference Call
SECOND QUARTER 2022 EARNINGS CONFERENCE CALL August 9, 2022
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 Use of Non-GAAP Financial Measures 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)
Slide 4: Today's Speakers
TODAY’S SPEAKERS Frank Clyburn Glenn Richter Michael DeVeau Executive Vice President, Chief Investor Relations Chief Executive Officer Chief Financial Officer & Communications Officer 4
Slide 5: Agenda
AGENDA Strategy Update ____ Financial Results ____ Full Year Outlook ____ Q&A 5
Slide 6: Foundational Phases Complete
P R O G R E S S I N G O U R S T R AT E G Y R E F R E S H FOUNDATIONAL PHASES COMPLETE W O R K P L AN T I M E L I N E Portfolio Priority Strategy Refresh Operating Execute Decisions & Prioritization Plan & Communicate • Enterprise-wide view of • Alignment of category • Develop detailed • Operationali
Slide 7: Where We Are Focusing
VAL U E C R E AT I O N O P P O R T U N I T I E S WHERE WE ARE FOCUSING M AN A G E M E N T GROWTH PRODUCTIVITY PORTFOLIO C U LT U R E Deliberate Industry- Unlocking Core vs Executional Choices Leading Value Non-Core Excellence Allocate enterprise- Focus R&D on high- Drive enhanced Optimize portfolio
Slide 8: Disciplined Resource Allocation
P L AY B O O K F O R D I F F E R E N T I AL M AN A G E M E N T DISCIPLINED RESOUCE ALLOCATION INVEST M AX I M I Z E OPTIMIZE Flavors An i m a l Pectin Nutrition Revenue Drive Growth Maintain Market Emphasize Margin Ahead of Market Growth Rates Improvement Gross Profit Drive Productivity Initiatives
Slide 9: Unlocking Value Within the Business
M U LT I - Y E AR P R O D U C T I V I T Y & R E I N V E S T M E N T P R O G R AM UNLOCKING VALUE WITHIN THE BUSINESS PRODUCTIVITY REINVESTMENT Supply Chain: Optimize supply chain and procurement Human Capital: People development & talent acquisition of direct and indirect materials efficiencies Inno
Slide 10: 1H 2022 Highlights
1H 2022 HIGHLIGHTS Sales Adjusted Operating $6.5B EBITDA¹ of $1.4B Reported sales grew 18%; Comparable currency neutral Comparable currency neutral sales ¹ ² +12% adjusted operating EBITDA¹ ² +8% Increased Quarterly Net Debt to Credit Portfolio Dividend ~3% Adjusted EBITDA1 of 4.4x Optimization Incr
Slide 11: Q2 2022 Consolidated Results
Q2 2022 CONSOLIDATED RESULTS In millions / % of sales 2021 2022 C H AN G E Comparable currency neutral sales were +11% led by double-digit growth in Nourish and Pharma Solutions ____ Revenue² $3,089 $3,307 7% Comparable adjusted currency neutral operating EBITDA1 grew 7% driven by pricing actions an
Slide 12: Q2 2022 Sales Performance
Q2 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 N e u t r a l S a l e s ¹ ² : + 11 % Health Fine Industrial In Millions Fragrance Flavors Cultures & Pharma Fruit Prep Food Enzymes Consumer Divestiture Ingredients Fragrance Microbial Control $3,
Slide 13: Q2 2022 Profitability Performance
Q2 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: +7% Full Cost Recovery In Millions $700 $679 1 Q2 2021 2 Portfolio 3 Total 4 Price 5 Volume 6 Net Synergies 7 Curr
Slide 14: Q2 2022 Segment Performance
Q2 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. 2Q 21) ¹ ² 2Q 21) ¹ ² $1.8 billion $365 million • Double-digit growth in Food Designs & high single-digits in Flavors Nourish +15% +18% • Profi
Slide 15: Cash Flow & Leverage
1H 2022 CASH FLOW & LEVERAGE C AS H F L O W L E V E R AG E Cash flow from operations totaled $(100) million due Cash and cash equivalents finished at $569 million to higher inventory values as a result of inflation ____ ____ Gross debt totaled $12,150 million Capex was $236 million or ~3.6% of sales
Slide 16: Consolidated Outlook FY 2022
FY 2022 CONSOLIDATED OUTLOOK In billions / % Reconfirmed Remain confident in ability to deliver full year financial objectives ____ Sales $12.6 to $13.0 Preparing for more uncertain market conditions given foreign exchange fluctuations, persistent inflation & potential recession Currency Neutral ___
Slide 17: Delivering on Our Objectives
AS S E S S I N G O U R P E R F O R M AN C E DELIVERING ON OUR OBJECTIVES FOCUS R E S U LT S 1 H S TAT U S Maintain strong 1 sales momentum Comparable currency neutral sales +12%¹ ² in 1H 2022; Targeting FY 2022 currency neutral comparable sales growth of 9 - 12% ____ Execute broad- Fully recovered t
Slide 18: Summary
SUMMARY Executing near-term operational priorities to achieve strong 1H 2022 top and bottom-line results ____ Increased dividend for 13th consecutive year, underscoring our confidence in our business & cash-flow generation ____ Advancing our strategic efforts by identifying value creation opportunit
Slide 19: IFF: Where Science & Creativity Meet
iF f Where science & creativity meet
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