IFF Announces Vision 2021 and Confirms 2019 and Long-Term Guidance


International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext Paris:IFF)
(TASE:IFF), a leading innovator of taste, scent and nutrition, announced
today that the Company will present IFF’s Vision 2021 at its Investor
Day at 9:00 am today in New York City.

“We are excited to share our vision for the future of IFF. The Frutarom
acquisition significantly increased our product portfolio, customer base
and capabilities and solidified our position as a global leader in
taste, scent and nutrition,” said Andreas Fibig, Chairman and CEO at IFF.

Vision 2021
Following IFF’s successful implementation of
Vision 2020 and its acquisition of Frutarom, the Company has launched
its new strategy to drive IFF’s top- and bottom-line goals. Vision 2021
has four pillars:

1) Unlocking growth opportunities – capitalizing on its expanded product
portfolio, broader customer base and extensive geographic presence; plus
cross-selling and integrated solutions which are expected to deliver
$100 million sales over the 2019 to 2021 period
2) Driving
innovation – investing in high-growth and high-return platforms to
continue to drive its R&D pipeline and accelerate long-term growth
Managing the Portfolio – focus on optimizing its portfolio to maximize
value creation
4) Accelerating Business Transformation –
successfully integrating Frutarom while delivering $145 million of
synergy targets and achieving productivity gains across the base business

“Our Vision 2021 Strategy has been designed to leverage our newly
combined organization, our broader product portfolio, increased naturals
portfolio, expanded market access, broader customer base and greater
innovation pipeline to drive total shareholder return,” added Mr. Fibig.
“We are focused on disciplined execution and capital stewardship.”

New Organization
To capitalize on its broadened portfolio
and align with its Vision 2021 strategy, the company is announcing a new
organizational structure, to be fully implemented over the next twelve
months. IFF will be organized intro three business segments: Taste,
Scent and Nutrition & Ingredients.

“We have designed an organization that will allow us to build on our
business and focus on accelerating high-growth and high-margin
platforms,” said Fibig. “We will capitalize on our combined capabilities
to drive revenue synergies and efficiencies to better serve our
thirty-nine thousand customers globally.”

Matthias Haeni will continue to lead Taste, a position he has held since
April 2014. Taste will ultimately include legacy Frutarom’s Taste,
Savory Solutions, and Inclusions businesses.

Nicolas Mirzayantz will continue to lead Scent, a position he has held
since October 2006.

Yoni Glickman, who presided over legacy Frutarom’s Natural Product
Solutions will lead Nutrition & Ingredients. “Yoni has proven he has the
right combination of Naturals expertise, market knowledge and deep
understanding across Nutrition & Ingredients categories to lead this new
strategic business unit,” said Fibig.

The organization is intended to be fully implemented over the next
twelve months. More details on the new organization will be announced
during the Investor Day meeting.

Financial Guidance
The Company reconfirms its long-term
financial targets for 2019-2021: 5-7% currency neutral sales growth, and
10%+ currency neutral EPS growth, excluding amortization. The company
reconfirms its objective to reach <3x Net Debt / EBITDA between 18-24 months and >12% total shareholder return by 2021. For the full year
2019, the Company also reconfirms its guidance of $5.2B – $5.3B in
sales, $4.90 – $5.10 in adjusted EPS, and $6.30 – $6.50 in EPS excluding

Investors may access the live webcast and accompanying slide
presentation on the Company’s website at ir.iff.com.
For those unable to listen to the live webcast, a recorded version will
be made available for replay.

Cautionary Statement Under The Private Securities Litigation Reform
Act of 1995

This press release includes “forward-looking
statements” under the Federal Private Securities Litigation Reform Act
of 1995, including statements regarding guidance for full year 2019,
long-term financial objectives, expected impact of Vision 2021 on future
growth and profitability, and the expected impact of the Company’s new
organizational structure to be implemented within the next 12 months.
These forward-looking statements are qualified in their entirety by
cautionary statements and risk factor disclosures contained in the
Company’s Securities and Exchange Commission filings, including the
Company’s Annual Report on Form 10-K filed with the Commission on
February 26, 2019 and subsequent filings with the SEC, including the
Company’s Quarterly Reports on Form 10-Q. The Company wishes to caution
readers that certain important factors may have affected and could in
the future affect the Company’s actual results and could cause the
Company’s actual results for subsequent periods to differ materially
from those expressed in any forward-looking statements made by or on
behalf of the Company. With respect to the Company’s expectations
regarding these statements, such factors include, but are not limited
to: (1) risks related to the integration of the Frutarom business,
including whether we will realize the benefits anticipated from the
acquisition in the expected timeframe; (2) unanticipated costs,
liabilities, charges or expenses resulting from the Frutarom
acquisition, (3) the increase in the Company’s leverage resulting from
the additional debt incurred to pay a portion of the consideration for
Frutarom and its impact on the Company’s liquidity and ability to return
capital to its shareholders,(4) the Company’s ability to successfully
market to its expanded and decentralized Taste and Frutarom customer
base, (5) the Company’s ability to effectively compete in its market and
develop and introduce new products that meet customers’ needs, (6) the
Company’s ability to successfully develop innovative and cost-effective
products that allow customers to achieve their own profitability
expectations, (7) the impact of the disruption in the Company’s
manufacturing operations, (8)the impact of a disruption in the Company’s
supply chain, including the inability to obtain ingredients and raw
materials from third parties,(9) volatility and increases in the price
of raw materials, energy and transportation, (10) the Company’s ability
to comply with, and the costs associated with compliance with,
regulatory requirements and industry standards, including regarding
product safety, quality, efficacy and environmental impact, (11) the
impact of any failure or interruption of the Company’s key information
technology systems or a breach of information security, (12) the
Company’s ability to react in a timely and cost-effective manner to
changes in consumer preferences and demands, (13) the Company’s ability
to establish and manage collaborations, joint ventures or partnership
that lead to development or commercialization of products, (14) the
Company’s ability to benefit from its investments and expansion in
emerging markets; (15) the impact of currency fluctuations or
devaluations in the principal foreign markets in which it operates; (16)
economic, regulatory and political risks associated with the Company’s
international operations, (17) the impact of global economic uncertainty
on demand for consumer products,(18) the inability to retain key
personnel; (19) the Company’s ability to comply with, and the costs
associated with compliance with, U.S. and foreign environmental
protection laws, (20) the Company’s ability to realize the benefits of
its cost and productivity initiatives, (21) the Company’s ability to
successfully manage its working capital and inventory balances, (22) the
impact of the failure to comply with U.S. or foreign anti-corruption and
anti-bribery laws and regulations, including the U.S. Foreign Corrupt
Practices Act, (23) the Company’s ability to protect its intellectual
property rights, (24) the impact of the outcome of legal claims,
regulatory investigations and litigation,(25) changes in market
conditions or governmental regulations relating to our pension and
postretirement obligations, (26) the impact of future impairment of our
tangible or intangible long-lived assets, (27) the impact of changes in
federal, state, local and international tax legislation or policies,
including the Tax Cuts and Jobs Act, with respect to transfer pricing
and state aid, and adverse results of tax audits, assessments, or
disputes, (28) the effect of potential government regulation on certain
product development initiatives, and restrictions or costs that may be
imposed on the Company or its operations as a result, and (29) the
impact of the United Kingdom’s expected departure from the European
Union. New risks emerge from time to time and it is not possible for
management to predict all such risk factors or to assess the impact of
such risks on the Company’s business. Accordingly, the Company
undertakes no obligation to publicly revise any forward-looking
statements, whether as a result of new information, future events, or

Forward-Looking Non-GAAP Metrics
This press release includes
the Company’s expectations for (i) sales growth for 2019 and long-term
currency neutral sales growth; (ii) EPS ex amortization growth for 2019
and long-term currency neutral EPS ex amortization growth; (iii)
long-term total shareholder return growth, and (iv) net debt to adjusted
EBITDA guidance for 2020 and 2021. The closest corresponding GAAP
measure to these non-GAAP measures and a reconciliation of the
differences between the non-GAAP metric expectation and the
corresponding GAAP measure is not available without unreasonable effort
due to length of the forecasted period and potential variability,
complexity and low visibility as to items such as future contingencies
and other costs that would be excluded from the GAAP measure, and the
tax impact of such items, in the relevant future period. The variability
of the excluded items may have a significant, and potentially
unpredictable, impact on our future GAAP results.

Welcome to IFF
At IFF (NYSE:IFF) (Euronext Paris:IFF)
(TASE:IFF), we’re using Uncommon Sense to create what the world needs.
As a collective of unconventional thinkers and creators, we put science
and artistry to work to create unique and unexpected scents, tastes,
experiences and ingredients for the products our world craves. Learn
more at iff.comTwitterFacebook,
and LinkedIn.


Michael DeVeau
Head of Investor Relations and Communications &
Divisional CFO, Scent

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