International Flavors & Fragrances, Inc. · NYSE:IFF
International Flavors & Fragrances — Q2 2021 Earnings Presentation
21 slides from International Flavors & Fragrances's earnings presentation, Aug 6, 2021
Slide 1: Second Quarter 2021 Earnings Conference Call
SECOND QUARTER 2021 EARNINGS CONFERENCE CALL August 6, 2021
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) combined currency neutral sales; (ii) adjusted operating EBITDA and combined adjusted operating EBITDA; (iii) adjusted operating EBITDA margin and combined adjusted oper
Slide 4: Today's Speakers
TODAY’S SPEAKERS Andreas Fibig Rustom Jilla Michael DeVeau Chairman & Executive Vice President, Chief Investor Relations Chief Executive Officer Chief Financial Officer & Communications Officer 4
Slide 5: Agenda
AGENDA 1H 2021 Performance Review ____ Integration Progress ____ Q2 Detailed Financial Review ____ Outlook Ahead ____ Q&A 5
Slide 6: 1H 2021 Highlights
1H 2021 HIGHLIGHTS Sales Adjusted Operating Free Cash Flow ² ³ $5.6B EBITDA Margin1 of 22.5% of $533M Combined sales grew +8%; Combined EBITDA grew +6%; ~10% of sales driven by Currency neutral growth of +5%¹ ² Margin lower by 50 bps impacted by strong cash generation higher raw material cost & logi
Slide 7: Geographic Sales Review
1H 2021 GEOGRAPHIC SALES REVIEW NOAM : +7% ¹ ² Growth achieved ASIA: +5% ¹ ² in all segments ____ Performance led by strong double-digit growth in India & Scent, Nourish and H&B mid-single digit growth in China all grew high-single digits ____ Nourish, Scent and Pharma LATAM : +12% ¹ ² all achieved
Slide 8: Category Sales Review
1H 2021 CATEGORY SALES REVIEW Combined Currency Neutral Sales¹ ²: +5% +8% +1% +6% +1% +3% In Millions Flavors Home & Personal Fine Industrial Care Fragrance Ingredients Pharma Cultures & Consumer Food Design Food Enzymes Fragrance $5,404 $5,133 Grain Processing Ingredients +8% Animal Nutrition Healt
Slide 9: Segment Performance
1H 2021 SEGMENT PERFORMANCE ADJUSTED NET O P E R AT I N G SALES¹² SEGMENT EBITDA (Combined currency MARGIN¹² HIGHLIGHTS neutral vs. 1H 20) (Change vs. 1H 20) $3.0 billion 20.0% • Broad-based growth in all categories led by Flavors Nourish +6% (50) bps • Strong volume & cost management offset by high
Slide 10: Revenue Synergy Opportunities
1H 2021 REVENUE SYNERGY OPPORTUNITIES RECENT WIN PIPELINE EXAMPLES HOME FOOD & FOOD & HEALTH CARE BEVERAGE BEVERAGE DESCRIPTION Superior Dish Plant Based Low Sugar, Healthy Washing Detergent Meat Alternative Low Fat Yogurt Fiber Gummy Probiotic / Prebiotic Culture Health Flavors Starter culture Bota
Slide 11: Cost Synergy Realization
1H 2021 COST SYNERGY REALIZATION P&L Realized Savings $ millions ~$15M Strong cost synergy realization, with approximately $15M in savings delivered in 1H 2021 ____ Implemented restructuring program in Q2, leveraged scale to reduce indirect spend, accelerated exit of TSA agreements & benefited from
Slide 12: Consolidated Results
Q2 2021 CONSOLIDATED RESULTS In millions / % of sales 2020 2021 C H AN G E Combined sales +13% driven by double-digit growth in Nourish & Scent and a strong increase in H&B; Revenue² $2,737 $3,089 13% FX contributed ~4 ppts ____ Gross margin principally impacted by raw material Adjusted gross margin
Slide 13: Strong Sales Growth vs Pre-COVID Levels
Q2 2021 STRONG SALES GROWTH VS PRE -COVID LEVELS Q2 Sales in $ Millions USD growth vs. Q2 2019 $3,089M / +8% Total $1,668M / +10% Nourish $639M / +4% H&B $550M / +8% Scent $232M / +10% Pharma 2021 2020 2019 ¹ Combined historical results for the second quarter is defined as 3 months (April, May and J
Slide 14: Nourish Segment
Q2 2021 NOURISH SEGMENT In millions / % of sales 2020 2021 C H AN G E Currency neutral sales +11%; FX contributed ~4 ppts Revenue² $1,450 $1,668 15% ____ Flavors growth robust, improving strong double-digits ____ Currency neutral growth¹ ² (1)% – 11% Ingredients very strong led by Protein Solutions,
Slide 15: Health & Biosciences Segment
Q2 2021 HEALTH & BIOSCIENCES SEGMENT In millions / % of sales 2020 2021 C H AN G E Currency neutral sales +5%; FX contributed ~4 ppts ____ Revenue² $588 $639 9% Double-digit growth in Home & Personal Care ____ Currency neutral growth¹ ² (2)% – 5% Microbial Control & Grain Processing both strong, wit
Slide 16: Scent Segment
Q2 2021 SCENT SEGMENT In millions / % of sales 2020 2021 C H AN G E Currency neutral sales +13%; FX contributed ~3 ppts ____ Revenue² $475 $550 16% Strong rebound in Fine Fragrances, which grew ~85% led by new wins & improved volumes ____ Currency neutral growth¹ ² 0% – 13% Consumer Fragrances down
Slide 17: Pharma Solutions Segment
Q2 2021 PHARMA SOLUTIONS SEGMENT In millions / % of sales 2020 2021 C H AN G E Currency neutral sales remained constant, on a strong Revenue² $224 $232 4% 7% year-ago comparison; FX contributed ~4 ppts ____ Industrial Pharma strong led by Global Specialty Currency neutral growth¹ ² 7% – 0% Solutions
Slide 18: Cash Flow & Leverage
1H 2021 CASH FLOW & LEVERAGE Strong cash flow generation; On-track with deleverage target C AS H F L O W L E V E R AG E Cash flow from operations totaled $698 million, Cash and cash equivalents finished at $935 million driven by improvements in core working capital1 ____ ____ Gross debt steady at $1
Slide 19: Combined Consolidated Outlook
FULL YEAR GUIDANCE COMBINED ² CONSOLIDATED OUTLOOK Increasing full year sales outlook to ~7% given strength In millions or as % of sales FY 2020² FY 2021² in Q2 as well as expectation for the balance of the year ____ Bullet number one ~$11,400 Revenue $10,641 ____ ~7% Growth Expect Q3 sales growth t
Slide 20: Summary
SUMMARY Strong execution driving financial performance ____ Made progress towards our integration efforts & on-track to deliver previously announced cost & revenue synergies ___ Increased quarterly dividend for twelfth consecutive year ____ Progressing portfolio optimization strategy to maximize sha
Slide 21: IFF - Where science & creativity meet
iF f Where science & creativity meet
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