International Flavors & Fragrances, Inc. · NYSE:IFF
International Flavors & Fragrances — Q1 2023 Earnings Presentation
14 slides from International Flavors & Fragrances's earnings presentation, May 9, 2023
Slide 1: First Quarter 2023 Earnings Conference Call
FIRST QUARTER 2023 EARNINGS CONFERENCE CALL May 9, 2023
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 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) free cash flow; and (iv) net debt to credit adjusted EBITDA. Our non-GAAP
Slide 4: Today's Speakers
TODAY’S SPEAKERS Frank Clyburn Glenn Richter Michael DeVeau Executive Vice President, Senior Vice President, Chief Executive Officer Chief Financial & Business Corporate Finance & Transformation Officer Investor Relations 4
Slide 5: Agenda
AGENDA Q1 2023 Review ____ Full Year Outlook ____ Q&A 5
Slide 6: Summary
Q1 2023 SUMMARY Sales Adjusted Operating Pricing $3.0B EBITDA¹ of $503M Actions Comparable currency Comparable currency neutral Favorable price to inflation benefit neutral sales ¹ ² +1% adjusted operating EBITDA¹ ² (19)% Productivity Portfolio Net Debt to Credit Benefits Optimization Adjusted EBITD
Slide 7: Sales Performance
Q1 2023 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: +1% In Millions Health Fine Industrial Flavors Fragrance Cultures & Pharma Microbial Control Ingredients Food Enzymes Consumer Divestiture Fragrance $3,226 Food Design Animal Nut
Slide 8: Profitability Performance
Q1 2023 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 EBITDA ex Absorption¹ ²: (4)% $702 In Millions Microbial Control $503 Divestiture Health Wright Comp CN Acquisition Adjusted
Slide 9: Segment Performance
Q1 2023 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 22) ¹ ² 1Q 22) ¹ ² $1.7 billion $208 million • Growth in Food Design & Flavors offset by declines in Ingredients Nourish • Price increases &
Slide 10: Cash Flow & Leverage
Q1 2023 CASH FLOW & LEVERAGE C AS H F L O W L E V E R AG E Cash flow from operations totaled $127 million Cash and cash equivalents finished at $594 million which includes $4 million currently in assets held for sale ____ ____ Capex was $175 million or ~5.8% of sales Gross debt totaled $11,309 milli
Slide 11: FY 2023 Consolidated Outlook
FY 2023 CONSOLIDATED OUTLOOK In millions or as % of sales Previous Revised1 Macro environment & operating condition remain volatile ____ Bullet number one ____ Revenue ~$12.5B ~$12.3B Volumes to remain under pressure in Q2, with an acceleration in H2; Implementing energy & rawBullet material pass-th
Slide 12: FY 2023 Operating Priorities
FY 2023 OPERATING PRIORITIES F O C U S AR E A PROGRESS 1 Accelerate sales growth Targeted investments & successful pricing execution to recover inflation Enhance customer service Achieve targeted service levels & reduced inventories (~$200M 2 & supply chain efficiencies improvement vs year-end 2022)
Slide 13: Summary
SUMMARY Focused on controlling what we can control & executing against our operational priorities to deliver our financial objectives ____ Macro environment remains uncertain; Expect volumes to remain under pressure in near-term, with an acceleration in H2 ____ Driving cash flow generation via inven
Slide 14: IFF: Where science & creativity meet
iF f Where science & creativity meet
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