International Flavors & Fragrances, Inc. · NYSE:IFF
International Flavors & Fragrances — Q1 2021 Earnings Presentation
20 slides from International Flavors & Fragrances's earnings presentation, May 11, 2021
Slide 1: First Quarter 2021 Earnings Conference Call
FIRST QUARTER 2021 EARNINGS CONFERENCE CALL May 11, 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 Q1 Performance Review ____ Integration Update ____ Detailed Financial Review ____ Outlook Ahead ____ Q&A 5
Slide 6: Q1 2021 Highlights
Q1 2021 HIGHLIGHTS Sales Adjusted Operating Free Cash Flow ² ³ $2.5B EBITDA Margin1 of 23.1% of $265M Combined sales grew 3%; +30 bps led by strong ~11% of sales driven by Currency neutral growth of +1%¹ ² cost management ¹ ² strong cash generation Net Debt to Credit On-Track with Portfolio Adjusted
Slide 7: Q1 2021 Global Sales Review
Q1 2021 GLOBAL SALES REVIEW NOAM : +2% ¹ ² Nearly all segments achieved growth ____ Scent achieved the strongest growth ASIA: +6% ¹ ² Healthy performance LATAM : +11% ¹ ² across many key markets ____ Local currency EAM E: (5)% ¹ ² China and India both growth strong grew double-digits ____ Western &
Slide 8: Sales Performance
Q1 2021 SALES PERFORMANCE Combined Currency Neutral Sales¹ ²: +1% +5% +3% +1% (3)% +2% In Millions Flavors ¹ ²& Personal Home Fine Pharma Care Fragrance Ingredients Industrial Health Consumer Food Design Fragrance $2,424 Cultures & $2,396 Food Enzymes Ingredients +3% Animal Nutrition Grain Processin
Slide 9: Q1 2021 Segment Performance
Q1 2021 SEGMENT PERFORMANCE ADJUSTED NET O P E R AT I N G SALES¹² SEGMENT EBITDA (Combined currency MARGIN¹² HIGHLIGHTS neutral vs. Q1 20) (Change vs. Q1 20) • Strong performances in Flavors & Protein Solutions were offset $1.3 billion 20.6% Nourish by softness in Food Design (i.e., pandemic related
Slide 10: Q1 2021 Integration Progress
Q1 2021 INTEGRATION PROGRESS HIGHLIGHTS REVENUE SYNERGIES COST SYNERGIES Successfully completed all day Strong pipeline of Implemented broad program 1 transitions & IT migration revenue synergy projects covering all elements of costs ____ ____ ____ Financial systems integrated Achieved 1st large win
Slide 11: Consolidated Results
Q1 2021 RESULTS CONSOLIDATED RESULTS In millions / % of sales 2020 2021 C H AN G E Combined sales grew 3% led by Scent & Pharma Solutions; FX contributed ~2 ppts Revenue² $2,396 $2,465 3% ____ Gross margin principally impacted by Adjusted gross margin² 39.0% 38.0% (100) bps higher raw material and l
Slide 12: Nourish Segment
Q1 2021 RESULTS NOURISH SEGMENT In millions / % of sales 2020 2021 C H AN G E Currency neutral sales grew 1%, on strong 5% year-ago comparison; FX contributed ~1.5 ppts Revenue² $1,276 $1,308 2.5% ____ Flavors strong, with growth in nearly all regions ____ Currency neutral growth¹ ² 5% – 1% Ingredie
Slide 13: Health & Biosciences Segment
Q1 2021 RESULTS HEALTH & BIOSCIENCES SEGMENT In millions / % of sales 2020 2021 C H AN G E Currency neutral sales declined 3%, on robust 11% year-ago comparison; FX contributed ~3 ppts ____ Revenue² $427 $426 0% Delivered strong growth in Home & Personal Care ____ Currency neutral growth¹ ² 11% – (3
Slide 14: Scent Segment
Q1 2021 RESULTS SCENT SEGMENT In millions / % of sales 2020 2021 C H AN G E Currency neutral sales grew 5%, on strong 7% year-ago comparison; FX contributed 0 ppts ____ Revenue² $541 $569 5% Strong rebound in Fine Fragrances, with growth led by new wins & improved volumes Currency neutral growth¹ ²
Slide 15: Pharma Solutions Segment
Q1 2021 RESULTS PHARMA SOLUTIONS SEGMENT In millions / % of sales 2020 2021 C H AN G E Currency neutral sales grew 3%, on robust 11% Revenue² $152 $162 7% year-ago comparison; FX contributed ~3 ppts ____ Currency neutral growth¹ ² 11% – 3% Core Pharma solid driven by volume growth for METHOCEL™, sea
Slide 16: Cash Flow & Leverage
Q1 2021 RESULTS 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 $358 million, driven by a $193 million improvement in core working Cash and cash equivalents finished at $872 million ____ capital1 ____ G
Slide 17: Combined Consolidated Outlook
FULL YEAR GUIDANCE COMBINED ² CONSOLIDATED OUTLOOK In millions or as % of sales FY 2020² FY 2021² Following solid start to year, expect growth rates to accelerate going-forward; Increased Bullet number onefull year sales target ~$11,250 ____ Revenue $10,641 ____ +6% Growth Expect Q2 sales growth to
Slide 18: Summary
SUMMARY Achieved solid top & bottom-line results against a strong year-ago comparison ____ Solid start to year driven by execution; Q2 sales trends strong through April ___ Made progress towards our integration efforts & on-track to deliver previously communicated objectives ____ Took first step in
Slide 19: Where science & creativity meet
iF f Where science & creativity meet
Slide 20: Combined Company 2020 Historical Results
2020 HISTORICAL RESULTS COMBINED COMPANY Q1 Q2 Q3 Q4 FY In millions or as % of sales 2020² 2020 2020 2020 2020² Revenue $2,396 $2,737 $2,737 $2,772 $10,641 Currency neutral growth¹ 7% 0% 0% 1% 2% Gross margin 39.0% 37.5% 37.3% 34.8% 37.1% Operating EBITDA margin¹ 22.8% 23.1% 22.9% 19.4% 22.0% Deprec
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