IN VESTO R D AY 2019 Vision & Strategy - Andreas Fibig Chairman & CEO - IFF

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IN VESTO R D AY 2019 Vision & Strategy - Andreas Fibig Chairman & CEO - IFF
Andreas Fibig
                 INVESTOR
Chairman & CEO   DAY 2019
                 Vision & Strategy
IN VESTO R D AY 2019 Vision & Strategy - Andreas Fibig Chairman & CEO - IFF
E X E C U T I V E S U M M A RY

1. Diversified product portfolio with ~20% sales derived from faster growing & profitable adjacencies

2. Strong multinational core list access; ~60% of sales from fast growing small & mid-sized customers

3. Industry-leading naturals portfolio & strongest innovation pipeline in Company history

4. Compelling Vision 2021 strategy focused on disciplined execution & integration

5. >12% Total Shareholder Return (TSR) goal, driven by >10% EPS growth*, and 2% dividend yield

Note: All sales data based on 2018 combined sales
*Excluding amortization

2      IFF Investor Day | Vision & Strategy
IN VESTO R D AY 2019 Vision & Strategy - Andreas Fibig Chairman & CEO - IFF
J O U R N E Y TO O U R A S P I R AT I O N
3 horizons to redefine IFF & build a stronger organization
                                                                                  LEADER
                                                                                 IN SCENT,
                                                                                  TASTE, &
                                                                   ACCELERATE    NUTRITION

                                            INTEGRATE & EXECUTE

    ENVISION & BUILD
                                                    IFF TODAY

                                           FRUTAROM ACQUISITION

                                                                                TIME
                   2015 - 2018                       2019 - 2021       2021+

3   IFF Investor Day | Vision & Strategy
IN VESTO R D AY 2019 Vision & Strategy - Andreas Fibig Chairman & CEO - IFF
ENVISION & BUILD: VISION 2020
Strong advancements across all strategic pillars

                                                                             VISION 2020
    Innovating                                    Winning where                                        Becoming our customers’                            Strengthening &
    firsts                                        we compete                                           partner of choice                                  expanding the portfolio
                            +Double-Digits
                            Encapsulation
                                                   #1     in Mid-Tier
                                                          Flavors NA
                                                                                 +13%
                                                                                 EAME
                                                                                                       Expansion
                                                                                                       Global core lists
                                                                                                                               Commercial
                                                                                                                               Excellence program
                                                                                                                                                          Expansion into Adjacencies

    13 New                  +Double-Digits                                                                                                                Acquisition Track Record
    Captive fragrance
                            Modulation
    ingredients
                                                                                                       Launch of tastepoint
                                                  +12%
                                                   NOAM

    9 New                                                                                 +6%
                                                                             +5%
    Natural flavor                                                                        GA
    modulators
                            PuraVitaTM                                       LATAM

    BUILDING OUR TALENT AND ORGANIZATION                                IFF University | Diversity & Inclusion | Employee Culture Survey

                                                                                                                                                                                                   $
    CONTINUOUSLY IMPROVING                                              Productivity Programs | Implementation of Zero-Based Budgeting | Acquisition Synergies                                 $
                                                                                                                                                                                                   $

    CREATING A SUSTAINABLE FUTURE                               Launched EcoEffective+ 2025 Goals |                Top 100 Most Sustainable US Co’s. |   FTSE4FGood
                                                                                                                                                                      Developed Market Index

Note: Percentage increases reflects organic currency neutral sales CAGR between 2015 and 2018
4        IFF Investor Day | Vision & Strategy
IN VESTO R D AY 2019 Vision & Strategy - Andreas Fibig Chairman & CEO - IFF
R E S U LT S & P E R F O R M A N C E
Strong track record of profitable growth

    Sales                                                             Adjusted EBITDA*                         Market capitalization

                                           +10%                                                     +8%                           +14%
                                      3-year CAGR                                                3-year CAGR                   3-year CAGR

                                               $4.0B                                                $942M
                                                                                                                                  $14.3B
            $3.0B                                                                $712M
                                                                                                                    $9.6B

             2015                              2018                               2015              2018            2015           2018
*Non-GAAP metrics: please see Non-GAAP disclosures at ir.iff.com
Note: 2018 sales are on a reported basis; market capitalization as of 12 / 31 of relevant year

5       IFF Investor Day | Vision & Strategy
IN VESTO R D AY 2019 Vision & Strategy - Andreas Fibig Chairman & CEO - IFF
F R U TA R O M A C Q U I S I T I O N
Unlocks new strategic opportunities

                                                       Greater exposure to naturals

                                                       Broad portfolio of adjacencies

                                            Leader
                                           in Scent,   ~36,000 new customers
                                            Taste &
                                           Nutrition
                                                       $145M in cost synergy targets

                                                       Cross-selling & integrated solutions

6   IFF Investor Day | Vision & Strategy
OUR EVOLUTION
We are a stronger company, with greater scale and broader capabilities

                            POSITION                   PORTFOLIO      CUSTOMERS    INNOVATION     EMPLOYEES   NET SALES

                               #2                     ~20% sales
                                                                                    Expansive
    TO                      Flavor &                  from faster      Approx.
                                                                                  platforms and    13,000+      $5B+
                           Fragrance                    growing         39,000
                                                                                   capabilities
                             player                   adjacencies

                               #4
FROM                                                   Traditional                  Flavor &
                            Flavor &                                   Approx.
                                                        Flavor &                   Fragrance       7,000+       $3B
                           Fragrance                                    3,000
                                                       Fragrance                    focused
                             player

Note: Sales data is from full year 2017 and full year 2018 combined

7        IFF Investor Day | Vision & Strategy
HOW WE RANK AMONG PEERS
Significant progress towards market leadership
2018 Reported Sales

                       $5.1B

Note: Based on reported 2018 sales except (I) IFF 2018 reflects combined sales and (II) Firmenich is based on estimated 2018 sales . Mane is based on
estimated 2018 sales

8       IFF Investor Day | Vision & Strategy
J O U R N E Y TO O U R A S P I R AT I O N
3 horizons to redefine IFF & build a stronger organization
                                                                                  LEADER
                                                                                 IN SCENT,
                                                                                  TASTE, &
                                                                   ACCELERATE    NUTRITION

                                            INTEGRATE & EXECUTE

    ENVISION & BUILD
                                                    IFF TODAY

                                           FRUTAROM ACQUISITION

                                                                                TIME
                   2015 - 2018                       2019 - 2021       2021+

9   IFF Investor Day | Vision & Strategy
Sustained Trends

                                            Consumers shift towards natural,
                                            health & wellness, clean label, traceability

                                            Small, mid-tier and private label
EVOLVING                                    players gaining share

CONTEXT                                     Continued momentum in sustainability

Adapting our strategy                       Emerging Trends
to rapidly changing world                   CPGs shifting towards growth & innovation

                                            Raw material cost volatility

                                            F&F expanding into adjacencies

                                            Improved growth in emerging markets

10   IFF Investor Day | Vision & Strategy
VISION 2021
Strategic framework to achieve ambition & accelerate profitable growth

                                               L E A D E R I N TA S T E , S C E N T & N U T R I T I O N
          T O P T H I R D T S R ( > 1 2 % ) | 5 - 7 % S A L E S G R O W T H | 1 0 % + E P S G R O W T H * | R A P I D D E B T P AY D O W N

                          UNLOCK
                                                                                                                             DRIVE
                          GROWTH
                                                                                                                   I N N O V AT I O N
                          OPPORTUNITIES

                                                                         FOCUS ON
                                                                         CUSTOMER                                 A C C E L E R AT E
                          MANAGE
                                                                                                                      BUSINESS
                          PORTFOLIO
                                                                                                          T R A N S F O R M AT I O N

               C U LT U R E                       T E C H N O L O G Y & D ATA           S U S TAI N AB I L I T Y                  M&A

                                                                TA L E N T & O R G A N I Z AT I O N

*Excluding amortization
11      IFF Investor Day | Vision & Strategy
GROWTH ENGINES
Unlocking incremental shareholder value

                                Customer Base              Geographic access       Product Portfolio       Innovation Pipeline
 EXPOSURE                           • Global core lists      • 45% sales in          • ~20% of sales         • Strongest pipeline
                                    • Fast growth small-       emerging markets        from high-growth        in company's
                                      & mid-tier                                       adjacencies             history

 ACTION                             • Gain share with        • Invest in Asia,       • Focused               • Prioritize highest
                                      recent core-listed       Africa and Middle       investments in          return platforms
                                      customers                East                    adjacencies given
                                                                                       growth and margin
                                    • Direct service
                                                                                       dynamics
                                      model for mid-tier

                                                C R O S S - S E L L I N G A N D I N T E G R AT E D S O L U T I O N S
                                                                 VA L U E - A C C R E T I V E M & A
Note: Sales data based on 2018 combined sales
12     IFF Investor Day | Vision & Strategy
F O C U S O N C U S TO M E R S
Broadest customer base in the industry
Customer base                           Customer segments              Geographic growth potential

                                                      Large CPGs
                                                      Strong access
                                              ​~40%   to Global CPG
                                                      core lists

~39,000                                               Mid-Sized,
 CUSTOMERS                                            Small, Private
                                                      Label CPGs
                                                      Faster growth
                                              ​~60%   segments

                                                                       Increase penetration in priority markets of Asia,
                                                                       Africa and Middle East
Note: Sales data based on 2018 combined sales
13     IFF Investor Day | Vision & Strategy
G R E AT E R A C C E S S I N AT T R A C T I V E A D J A C E N C I E S
Significantly increased market potential & strengthened growth exposure
Key markets of exposure
Estimated 2018 Growth (5-Year Projected CAGR)
                                                                                                                                                   7%
Market size ($B)                                                                                                6%          6%          6%
                                                                                                    5%
      4%                                                                                  4%
                                          3%                3%                3%
                        2%

  Total IFF        Fragrance Fragrance                   Flavors          Flavor     Savory       Cosmetic   Inclusions1   Natural    Natural     Health
   Market                    Ingredients                                Ingredients Solutions      Actives                 Colors      Food     Ingredients
                                                                                                                                     Protection

     ~$50B
                        $10B              $4B             $12.5B             $1.5B        $2.3B    $2.6B        $9B         $1.5B       $1B        $4B

1. Includes Taura, Inventive and Leagel (Gelato ingredients)
Note: light blue refers to adjacent segments access gained through Frutarom acquisition
Source: Company estimates

14      IFF Investor Day | Vision & Strategy
C R O S S - S E L L I N G A N D I N T E G R AT E D S O L U T I O N S
Two key sources for value creation

                                              Opportunity to serve customer

Cross-Selling
                                              needs by leveraging existing
                                              relationships and expanded
                                                                               $8M*
                                              portfolio                        Quick
                                                                               wins to
                                                                               date
                                              Combine product offering and
Integrated
Solutions                                     value-added services into full             $100M
                                              "solutions"
                                                                                         2021 target

* On an annualized basis
15     IFF Investor Day | Vision & Strategy
R O B U S T R & D P I P E L I N E A C R O S S P L AT F O R M S
Strongest innovation pipeline in company history
     P L AT F O R M S                                                     Innovation Pipeline: 15-yr NPV EP1
 •    Naturals & Beyond                        •   Active Cosmetics
 •    Modulation                               •   Health & Nutrition                                                     ~50%
 •    Ingredients                              •   Delivery Systems

     E N A B L I N G C A PA B I L I T I E S
 •    Sensory                                  •   Biosciences
 •    AI, Data & Analytics                     •   Applications Science
 •    Next Gen Processing                      •   Crop Science
 •    Analytical                               •   Clinical Research

     C H E M I S T R Y & M AT E R I A L S C I E N C E
     S U S TA I N A B I L I T Y                                                   2014                                           2019
                                                                                    1NPV   = Net Present Value, EP = Economic Profit

16      IFF Investor Day | Vision & Strategy
PORTFOLIO ASSESSMENT
Diverse portfolio with different roles that dictate resource allocation guidelines
IFF Product Groups
Estimated EBITDA Margin (%)

                     AVG.

                                                                                   RESOURCE
                                                                                   ALLOCATED
                                                                            AVG.   TO MAXIMIZE
                                                                                   RETURNS
                                                                                   (>12%+ TSR)

     Scent   Taste       Nutrition & Ingredients             Future growth rate

                            Relative Bubble Size = Estimated Annual Sales

17
PORTFOLIO
MANAGEMENT
ROLES DRIVE                                                FIX

RESOURCE                                               10%
A L L O C AT I O N
                                                                               GROWTH
                                                                           $    40%
GROWTH
                                                        RESOURCE
Invest for profitable growth                           AL L O C AT I O N

BALANCED                                               $
Growth and margin                           BALANCED
                                              50%
FIX
Rapidly fix or de-prioritize

                                            (%) Revenue share as a % of total
18   IFF Investor Day | Vision & Strategy
B U S I N E S S T R A N S F O R M AT I O N
Comprehensive programs unlock value for reinvestment & margin expansion
3-year savings target ($M)

                                                  ~100              ~245

                                 145

                 Integration synergies      Productivity programs    Total

19   IFF Investor Day | Vision & Strategy
G L O B A L L E A D E R I N S U S TA I N A B I L I T Y                                                                         2019
Significant & broad-based improvements
                                                                                                                2018

                                                                                                2017
                                                                                2016
                                                                2015

                                                2014                                           We launched      Surpassed 3
                                                                                               our 2020         of our 4 eco-
                                                                                               Environmental    efficiency 2020 SAM 'Industry
                                   2013                                                        Sustainability   goals           Mover'
                                                                                               Goals
                  2012                                                                                          Barron’s       CDPs 'A' List
                                                                CDP 'A' List,   F&F industry’s Achieved         100 Most       for Water
 2011                              Created a                    climate         first on-site  industry first   Sustainable    Security
                                   Green                        change          Turbine        GreenCircle      Companies
                  Ambitious        Chemistry                                                   certified LLC                   Historical
 First            2020             Product      4KW Solar       EcoVadis        Euronext       Zero waste to    Euronext       partnership
 sustainability   sustainability   Evaluation   field opening   CSR Gold         Vigeo         landfill         Vigeo World    with
 report           targets          Tool         in Hazlet       (top 5%)        U.S. 50 index certification     120 Index      Yellowstone

20
DEC
                                            2018
                                                                 TECHNOLOGY

M&A                                         JAN
                                            2019
                                                                 SAVORY SOLUTIONS

Strengthened
M&A capabilities                            MAR
                                                                 INCLUSIONS
                                            2019

Robust deal pipeline
                                            APR                  TECHNOLOGY
Aligned with portfolio roles                2019                 VENTURE INVESTMENT

                                            MAY
                                            2019                 SAVORY SOLUTIONS
                                                   Corporation
                                                     (Canada)

21   IFF Investor Day | Vision & Strategy
PORTFOLIO ALIGNMENT
Redefining our business units for accelerate profitable growth
                                                                                                 NUTRITION &
                                            SCENT                   TA S T E                     INGREDIENTS

                                            Fine Fragrances         Flavors (Frutarom Flavors)   Natural Health
                                                                                                 Ingredients
                                            Consumer                Savory Solutions
 C AT E G O R I E S                         Fragrances                                           Natural Colors
                                                                    Inclusions
                                            Fragrance Ingredients   (Taura, Inventive &          Natural Food
                                                                    Leagel)                      Protection
                                            Cosmetic Active
                                            Ingredients                                          Flavor Ingredients
22   IFF Investor Day | Vision & Strategy                           New categories within BU
TA L E N T A N D O R G A N I Z AT I O N
Getting the best of both organizations

SCENT                                                          TA S T E                               NUTRITION & INGREDIENTS

               Nicolas Mirzayantz                                     Matthias Haeni                                  Yoni Glickman

                                    Cosmetic                                                             Natural      Natural
   Fine         Consumer                          Fragrance      Flavor      Savory                                               Natural     Flavor
                                      Active                                            Inclusions       Health        Food
Fragrances      Fragrances                       Ingredients   Compounds    Solutions                                             Colors    Ingredients
                                   Ingredients                                                         Ingredients   Protection

                                                     Managed by Legacy IFF leader       Managed by Legacy Frutarom leader

                      Key Accomplishments                                                               Critical Next steps
                          Defined new organization                                                       Align incentive systems
                        Retained critical talent from                                                Selectively integrate IT systems
                                Frutarom                                                             aligned with business priorities
23   IFF Investor Day | Vision & Strategy
5 – 7%
                                                                   Revenue growth*

                                                    2%                                      Expand
                                              Dividend                                      margin
                                                  yield
VISION 2021
                                                                   TOP THIRD
FINANCIAL                                                          TSR >12%+
OBJECTIVES

                                                        10%+                         Repay debt
                                                  EPS growth*                        (
E X E C U T I V E S U M M A RY

1. Diversified product portfolio with ~20% sales derived from faster growing & profitable adjacencies

2. Strong multinational core list access; ~60% of sales from fast growing small & mid-sized customers

3. Industry-leading naturals portfolio & strongest innovation pipeline in Company history

4. Compelling Vision 2021 strategy focused on disciplined execution & integration

5. >12% Total Shareholder Return (TSR) goal, driven by >10% EPS growth*, and 2% dividend yield

*Excluding amortization

25      IFF Investor Day | Vision & Strategy
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