International Flavors & Fragrances, Inc. · NYSE:IFF
International Flavors & Fragrances — Q1 2022 Earnings Presentation
17 slides from International Flavors & Fragrances's earnings presentation, May 10, 2022
Slide 1: First Quarter 2022 Earnings Conference Call
FIRST QUARTER 2022 EARNINGS CONFERENCE CALL May 10, 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 EBITDA margin (iv) adjusted E
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 90 Day Perspective ____ Q1 2022 Review ____ Full Year Outlook ____ Q&A 5
Slide 6: Preliminary View After 90 Days
S T R O N G F O U N D AT I O N W I T H O P P O R T U N I T I E S T O I M P R O V E PRELIMINARY VIEW AFTER 90 DAYS STRENGTHS OPPORTUNITIES Attractive industry characteristics create tailwinds Drive culture of executional excellence through talent, for profitable growth (sustainability, health & welln
Slide 7: Process to Accelerate Value Creation
I N S T I L L I N G O P E R AT I O N A L R I G O R PROCESS TO ACCELERATE VALUE CREATION S T R AT E G I C R E F R E S H P R O C E S S + + + = Sources Profitable Define Strategic Formalized & Drivers Growth Winning Choices Plan of Value Agenda Rallying Develop robust fact- Align on the choices Agree o
Slide 8: Maximizing Our Portfolio
E S TAB L I S H I N G T H E FAC T B AS E MAXIMIZING OUR PORTFOLIO A B C High Returns Medium Returns Low/ Negative Returns Reinvest to fuel growth Efficiently manage resources to maximize performance Optimize capital to improve returns or deprioritize/exit ROIC¹ Percent Invested capital $M 1 ROIC and
Slide 9: Q1 2022 Highlights
Q1 2022 HIGHLIGHTS Sales Adjusted Operating Adjusted EPS Ex $3.2B EBITDA¹ of $702M Amortization¹ of $1.69 Reported sales growth of +31%; Comparable currency neutral EBITDA¹ ² Increased working capital requirements Comparable currency neutral sales +13%¹ ² +9%; Margin pressured by inflation¹ ² and hi
Slide 10: Sales Performance
Q1 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: +13% Flavors Home & Fine Industrial In Millions Personal Care Fragrance Ingredients Pharma N&B January Cultures & Consumer 2021 Sales Food Design Food Enzymes Fragrance Fruit Pre
Slide 11: Profitability Performance
Q1 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: +9% Full Cost Recovery In Millions $702 $569 Q1 2021 1 Portfolio 2 Total 3 Price 4 Volume 5 Net Synergies 6 Russia
Slide 12: Segment Performance
Q1 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. 1Q 21) ¹ ² 1Q 21) ¹ ² $1.7 billion $329 million • Performance led by double-digit growth in Food Designs and Ingredients Nourish +16% +14% • Pr
Slide 13: Cash Flow & Leverage
Q1 2022 CASH FLOW & LEVERAGE C AS H F L O W L E V E R AG E Cash and cash equivalents finished at $662 million Cash flow from operations totaled $(4) million ____ ____ Gross debt totaled $11,695 million Capex was $132 million or ~4.1% of sales ____ ____ Trailing 12-month credit adjusted EBITDA2 Free
Slide 14: Consolidated Outlook
FY 2022 CONSOLIDATED OUTLOOK In billions / % Previous Revised Operating environment remains volatile, with uncertainties due to COVID, geopolitical issues and supply Bullet number onechain challenges ____ ____ Sales $12.3 to $12.7 $12.6 to $13.0 Increased sales to reflect incremental pricing Bullet
Slide 15: 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 Q 1 S TAT U S Maintain strong Solid volume momentum to start the year; More cautious on outlook 1 sales momentum Internal supply chain remains challenged & adding incremental capacity ____ Execute broad- Full
Slide 16: Summary
SUMMARY Pleased with our strong start to 2022, led by strong pricing contributions and volume growth ____ Operating environment is volatile, with uncertainties due to COVID, geopolitical issues & supply chain challenges ____ Committed to delivering our full year objectives, with the execution of our
Slide 17: IFF: Where science & creativity meet
iF f Where science & creativity meet
International Flavors & Fragrances — Q1 2022 Earnings Presentation on 6ix