International Flavors & Fragrances, Inc. · NYSE:IFF
International Flavors & Fragrances — Q3 2017 Earnings Presentation
16 slides from International Flavors & Fragrances's earnings presentation, Nov 7, 2017
Slide 1: IFF Q3 2017 Earnings Conference Call
INTERNATIONAL FLAVORS & FRAGRANCES IFF Q3 2017 Earnings Conference Call November 7, 2017
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”, “should”, “target” or similar terms and variations thereof)
Slide 3: Conference Call Participants
Conference Call Participants Andreas Fibig Rich O’Leary Chairman & CEO EVP & CFO 3
Slide 4: Agenda
Agenda 1. Executive Overview 2. Strategic Highlights 3. Financial Review 4. Outlook 5. Q&A 4
Slide 5: Executive Overview
Executive Overview Achieved growth across all financial metrics Q3 2017 9M 2017 +12% +9% Currency neutral sales growth* Currency neutral adjusted operating profit growth* +7% +5% Currency neutral adjusted EPS growth* +5% +8% * Currency Neutral Sales, Currency Neutral Adjusted Operating Profit and Cu
Slide 6: Vision 2020 Execution
Vision 2020 Execution Strategic highlights • Sweetness & savory modulation portfolio continued to grow double-digits • Encapsulation related sales grew high-single-digits • Tastepoint℠ grew strong double-digits • Cosmetic Active Ingredients continued its strong growth, growing double-digits • Middle
Slide 7: Reconciliation Of Growth Drivers
Reconciliation Of Growth Drivers Q3 2017 currency neutral operating profit 4% (3)% (4)% Incentive 5% Compensation Mix Reset Cost & (9)% 15% Productivity Price M&A Initiatives to Input Costs (1)% 7% RSA Other Currency Volume Neutral Currency Adjusted Neutral Operating Adjusted Profit* Operating Profi
Slide 8: Flavors Review
Flavors Review +12% Q3 2017 currency neutral sales performance TOTAL SALES +12% Driven by broad-based growth as well as additional sales related to the acquisition of David Michael EAME 2% +28% GREATER ASIA NORTH AMERICA Growth principally driven by India Reflecting additional sales related to and T
Slide 9: Flavors Review
Flavors Review Q3 2017 segment profit performance Segment Profit Currency Neutral Segment Profit: +19%* $91M • Continued strong growth performance • Driven by volume growth, the contributions of acquisitions & the benefits from productivity initiatives 22.3% Currency Neutral Segment Profit Margin: S
Slide 10: Fragrances Review
Fragrances Review +12% Q3 2017 currency neutral sales performance TOTAL SALES +11% +18% +8% CONSUMER FRAGRANCE FINE FRAGRANCE FRAGRANCE INGREDIENTS Balanced contribution from organic Inclusive of additional sales Primarily driven by double-digit business and additional sales related to related to th
Slide 11: Fragrances Review
Fragrances Review Q3 2017 segment profit performance Segment Profit Currency Neutral Segment Profit: +6%* $94M • Benefited from volume growth, the contribution of acquisitions and the benefits from productivity initiatives Currency Neutral Segment Profit Margin: 20.2% • Strong margin profile; pressu
Slide 12: Cash Flow Analysis
Cash Flow Analysis YTD 2017 operating cash flow results & uses of cash YTD ‘16 YTD ‘17 Operating cash flow • Lower operating cash flow primarily impacted by Net Income $325 $336 previously announced ZoomEssense litigation settlement ($56M), and higher working capital Core Working Capital* (66) (109)
Slide 13: 2017 Currency Neutral Outlook
2017 Currency Neutral Outlook Reconfirm previously stated guidance Currency neutral sales growth* 7.5 - 8.5% Currency neutral adjusted operating profit growth* 5.5 - 6.5% Currency neutral adjusted EPS growth* 6.5 - 7.5% * Currency Neutral Sales, Currency Neutral Adjusted Operating Profit and Currenc
Slide 14: Expected Currency Impact In 2017
Expected Currency Impact In 2017 Currency has improved; Favorable impact on previous guidance Adjusted* Impact of Adjusted* Currency Neutral Currency Sales 7.5% - 8.5% ~0 ppt 7.5% - 8.5% Operating 5.5% - 6.5% ~(1) ppt 4.5% - 5.5% Profit EPS 6.5% - 7.5% ~(2) ppt 4.5% - 5.5% * Currency Neutral Sales,
Slide 15: Summary
Summary Need to Update Strong Financial Performance in Q3 2017 Continued Execution of Vision 2020 Strategy On-Track to Deliver 2017 Financial Goals 15
Slide 16: Q&A
INTERNATIONAL FLAVORS & FRAGRANCES Q&A
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