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IFF Reports Fourth Quarter and Full Year 2012 Results

  IFF Reports Fourth Quarter and Full Year 2012 Results

      Fourth Quarter Local Currency Sales Up 8% and Adjusted EPS up 12%

          Full Year Local Currency Sales Up 4%; Reported Sales up 1%

         Full Year Adjusted Earnings per Share Increased 6% to $3.98

Business Wire

NEW YORK -- February 7, 2013

International Flavors & Fragrances Inc. (NYSE: IFF), a leading global creator
of flavors and fragrances for consumer products, today reported financial
results for the fourth quarter and full year ended December 31, 2012.

Fourth Quarter 2012 Results

  *Reported revenue increased $37 million or 6% to $681 million from $644
    million in the prior year quarter. Excluding the impact of foreign
    currency (by translating current and prior year sales at the same exchange
    rates), local currency sales increased 8% reflecting a high level of new
    wins and positive volume on existing business. Our expanding footprint in
    emerging markets accounted for 49% of fourth quarter sales.
  *On a like-for-like (LFL) basis, which excludes the exit of Flavors
    low-margin sales activities, local currency sales increased 10%.
  *Net income for the quarter totaled $68.1 million, or $0.83 per share,
    compared with net income of $24.4 million or $0.30 per share in the prior
    year quarter. Net income in the fourth quarter of 2011 included an
    aggregate charge of $36.8 million, or $0.44 per share, related to a patent
    litigation settlement and restructuring and other charges.
  *Excluding the patent litigation settlement and restructuring charges from
    the prior year’s results, adjusted net income increased 11% to $68.1
    million from $61.1 million in the prior year quarter, and adjusted
    earnings per share (EPS) increased 12% to $0.83 per share from $0.74 per
    share in the prior year quarter.

Full Year 2012 Results

  *Reported revenue for the full year increased 1% to $2.8 billion. Local
    currency sales increased 4% for the full year, reflecting accelerated
    momentum throughout the year. On a like-for-like basis, sales increased
    5%. The emerging markets accounted for 47% of full year sales.
  *Net income for the full year totaled $254.1 million, or $3.09 per share,
    compared with net income of $266.9 million or $3.26 per share in the prior
    year. Net income for the full year includes special charges of $73.4
    million, or $0.89 per share, almost all of which is related to the
    previously-announced Spanish tax settlement. Net income for the prior year
    included an aggregate charge of $39.3 million, or $0.47 per share, related
    to a patent litigation settlement and restructuring and other charges.
  *Excluding these charges from operating results, adjusted net income
    increased 7% to $327.5 million from $306.2 million and full year adjusted
    EPS increased 6% to $3.98 from $3.74.
  *Cash flows from operations for the full year were $333.1 million, or 11.8%
    of sales, compared with $189.2 million, or 6.8% of sales in the prior
    year. Cash flow from operations for 2012 includes a $105.5 million cash
    outflow arising from the Spanish tax settlement, and for 2011 includes a
    $40 million payment for a patent litigation settlement. Excluding these
    items, the Company’s cash flow from operations nearly doubled in 2012.

Management Commentary

Doug Tough, Chairman and CEO, said, “We had a strong finish to the year,
driven by our diverse product portfolio, expanding geographic footprint and
commitment to providing customers with innovative and superior products that
are desired and enjoyed by consumers all around the world. This
diversification allowed us to achieve strong broad-based growth in the fourth
quarter, led by double-digit growth in the emerging markets. Both business
units contributed to our gross margin performance, reflecting strong new wins
from our continued focus on innovation, ongoing manufacturing leverage, and
the impact of exiting lower margin sales activities. Our strong top-line
performance enabled us to achieve local currency sales, operating profit and
EPS growth in line with our long-term targets.”

“For the full year we delivered local currency sales growth of 4%, marking the
third consecutive year of top-line growth in line with our long-term growth
targets. We made targeted investments to expand our footprint in the growing
markets of Greater Asia, which included opening a new manufacturing facility
in Singapore and a creative center in India, continuing construction on our
facility in China, and initiating investments behind our recently-announced
capacity expansion project in Turkey. Based on our consumer insights and
market knowledge, our research programs are aligned under our key R&D
platforms, which are designed to meet the consumer needs of today while
anticipating the consumer preferences of tomorrow. We announced earlier this
week that we are have made further progress with our biotechnology partner,
Evolva, on creating an alternative route for vanillin, which we believe will
provide us with a sustainable source for this key flavoring ingredient and
give us a strong competitive advantage.”

“We are very well positioned in the market, and enter 2013 with a strong R&D
pipeline and solid growth momentum. We have confidence in our strengths and
will continue to focus on excellence in execution of our strategies.”

Fourth Quarter 2012 Operating Highlights

  *Local currency sales increased 8%, supported by 11% growth in the emerging
    markets, and 6% growth in the developed markets. On a like-for-like basis,
    local currency sales increased 10%.
  *Gross profit margins, as a percentage of sales, improved to 42.2%,
    compared with 37.9% in the fourth quarter of 2011. The improved
    performance was driven by favorable manufacturing leverage due to the
    strong volume growth, cost savings initiatives, an improved sales mix
    including benefits associated with exiting low-margin sales activities in
    Flavors, and the continued benefits of pricing which helped to offset the
    continued high level of input costs.
  *Research, selling and administrative (RSA) expenses, as a percentage of
    sales, was 27.6% compared with 29.0% in the fourth quarter of 2011.
    Excluding the impact of the 2011 patent litigation settlement, adjusted
    RSA, as a percentage of sales, increased 380 basis points to 27.6%
    compared with 23.8% in the prior year quarter, primarily as a result of
    higher incentive compensation accruals owing to the strength of our strong
    performance this quarter and its impact on the achievement of our full
    year sales growth targets. Before the impact of incentive compensation,
    adjusted RSA as a percentage of sales would have shown a decrease versus a
    year ago.
  *Operating profit totaled $99.2 million, compared with $47.8 million in the
    prior year quarter. Operating profit in the prior year quarter included an
    aggregate charge of $43 million related to the patent litigation
    settlement and restructuring charges. Excluding these items, adjusted
    operating profit increased $8 million, or 9%, to $99.2 million from $91.1
    million in the prior year, as a result of volume growth, mix improvements
    and manufacturing leverage, which more than offset increased incentive
    compensation accruals. Adjusted operating profit margin increased 50 basis
    points to 14.6% from 14.1% in the prior year.
  *Interest expense decreased by $0.2 million in the fourth quarter compared
    with the prior year quarter, reflecting lower levels of outstanding debt.
  *The effective tax rate for the quarter was 23.2% compared with 39.8% in
    the prior year. The prior year tax rate was negatively impacted by the
    patent litigation settlement and restructuring charges. The
    quarter-over-quarter reduction also reflects favorable adjustments to
    provisions for uncertain tax positions and a lower cost of repatriation.
    These items were partially offset by the absence of the R&D tax credit in
    2012.

Fourth Quarter 2012 Segment Results

Fragrances Business Unit

  *Reported revenue increased 10% to $354 million in the fourth quarter,
    compared with $322 million in the fourth quarter of 2011. Local currency
    sales increased 13% in the fourth quarter. Fragrance Compounds momentum
    continued this quarter with local currency growth of 15%, marking the
    third consecutive quarter of accelerated growth.
  *Fragrance Ingredients delivered local currency sales growth of 6%, which
    marked the first quarter of growth since Q1 2011.
  *Strong new customer wins and broad-based growth in our Fragrance Compounds
    business drove local currency sales growth of 15%, with double-digit
    growth in Latin America, Greater Asia and North America and solid growth
    in EAME. Fine Fragrance and Beauty Care achieved 19% local currency sales
    growth and Functional Fragrance delivered 12% local currency sales growth.
  *Fragrances gross margins increased over the prior year quarter primarily
    due to strong new wins, favorable category mix, cost savings initiatives
    and the continued benefits of pricing which is helping to offset the
    continued high level of input costs.
  *Segment profit totaled $53 million in the fourth quarter of 2012 compared
    with $37 million in the fourth quarter of 2011, or an increase of 44%. The
    improved segment profit is due to strong volume growth combined with gross
    margin expansion, which offset increased incentive compensation expenses
    this quarter. Segment profit margin increased 360 basis points to 15.1%
    from 11.5%.

Flavors Business Unit

  *Reported revenue increased 1% to $326 million in the fourth quarter from
    $323 million in the prior year quarter.
  *Local currency sales increased 3% in the fourth quarter fueled by stronger
    growth in the emerging markets of Southeast Asia and Latin America
    combined with steady growth in the developed markets of North America and
    Western Europe. On a like-for-like basis, local currency sales increased
    7% over the prior year quarter, led by 15% LFL growth in North America.
  *From an end-use category perspective, local currency sales growth was
    fueled by double-digit growth in Beverages, particularly in North America,
    followed by solid growth in Savory and Dairy, primarily in Greater Asia.
  *Flavors gross margins increased over the prior year quarter primarily due
    to favorable category mix, the impact of exiting low-margin sales
    activities, and the continued benefits of previous pricing to help offset
    the continued high level of input costs.
  *Segment profit totaled $62 million in the fourth quarter of 2012, compared
    with $63 million in the fourth quarter of 2011. Overall sales growth and
    expanded gross margins due to favorable category mix and pricing
    realization were more than offset by higher RSA expenses, including
    increased incentive compensation expense. Segment profit margin decreased
    60 basis points to 19.0% from 19.6%.

Full Year 2012 Operating Highlights

  *Local currency sales increased 4%, reflecting 8% growth in emerging
    markets. On a like-for-like basis, local currency sales increased 5%.
  *Gross profit margins, as a percentage of sales, improved to 41.7%,
    compared with 39.6% in 2011. The improved performance was due to an
    improved mix of business, the benefits associated with exiting low-margin
    sales activities, continued pricing, moderating raw material cost
    increases and ongoing manufacturing efficiencies.
  *Research, selling and administrative (RSA) expenses, as a percentage of
    sales, was 24.4% compared with 23.8% in 2011. Excluding the impact of the
    2011 patent litigation settlement, the adjusted RSA, as a percentage of
    sales, increased 180 points to 24.4% compared with 22.6% in 2011,
    primarily as a result of higher incentive compensation accruals and
    pension expenses.
  *Operating profit totaled $487 million in 2012 compared with $428 million
    in 2011. Excluding an aggregate charge of $46.7 million related to the
    patent litigation and restructuring charges from the prior year’s results,
    and $1.7 million of restructuring charges form the current year’s results,
    adjusted operating profit increased $14 million or 3% to $488 million in
    2012 from $474 million in 2011. Adjusted operating profit margins
    increased 30 basis points to 17.3% from 17.0%.
  *Interest expense decreased by $3 million year-over-year, reflecting lower
    levels of outstanding debt.
  *The effective tax rate was 42.7% in 2012 as compared to a rate of 28.6% in
    the prior year. Excluding the impact of the 2011 and 2012 items previously
    noted, including the 2011 patent litigation and restructuring charges and
    the 2012 Spanish tax settlement and restructuring charges, the adjusted
    effective tax rate for 2012 was 26.4%, compared with 27.1% in the prior
    year. The year-over-year reduction reflects favorable adjustments to
    provisions for uncertain tax positions in 2012, combined with a lower cost
    of repatriation. These favorable impacts were partially offset by the
    absence of the US R&D tax credit in 2012.

Full Year 2012 Segment Results

Fragrances Business Unit

  *Reported revenue for the full year of $1.4 billion was flat compared with
    the prior year. Fragrance local currency sales increased 3%. The
    Fragrances segment contributed 51% of the total consolidated revenue.
  *For the full year, Fragrance Compounds had local currency growth of 7%,
    compared with 1% local currency growth in 2011. Fragrance Ingredients,
    although improving over the course of the year, declined 10% in local
    currency sales in 2012 versus 2011.
  *Fragrance Compounds showed positive local currency sales growth across all
    regions, with double-digit growth in Latin America and solid growth in
    Greater Asia, North America and EAME. Both Fine Fragrance & Beauty Care
    and Functional delivered full year local currency sales growth of 7% due
    to strong new customer wins.
  *Fragrances gross margins increased over the prior year primarily due to
    new customer wins, favorable category mix, and productivity gains from
    cost savings initiatives and continued pricing to offset higher input
    costs.
  *Segment profit totaled $238 million in 2012 compared with $227 million in
    the prior year, or an increase of 5%. The segment profit improvement is
    due to improved category mix and pricing, combined with ongoing cost
    discipline including the benefit from the strategic realignment plan
    announced in the first quarter of 2012, which more than offset higher raw
    material costs. Segment profit margin increased 80 basis points to 16.5%
    from 15.7%.

Flavors Business Unit

  *Reported revenue for the full year increased 2% to $1.4 billion. The
    Flavors segment contributed 49% of the total consolidated revenue.
  *Local currency sales increased 5% for the full year and increased 8% on a
    LFL basis, supported by 9% growth in emerging markets. Greater Asia,
    Flavors largest region, delivered growth of 7% for the full year growth,
    or 8% on a LFL basis. The developed market of North America delivered
    like-for-like growth of 9%.
  *From an end-use category perspective, local currency growth was fueled by
    double-digit growth in Beverages, followed by solid growth in Savory and
    Dairy.
  *Flavors full year gross margins increased over the prior year primarily
    due to favorable category mix, the impact of exiting low-margin sales
    activities and continued pricing.
  *Full year segment profit for Flavors totaled $298 million compared with
    $284 million in the prior year. The improved segment profit is due to
    strong volume growth, favorable category mix and pricing realization that
    more than offset higher raw material costs, ongoing investments in R&D and
    increased incentive compensation expenses. Segment profit margin increased
    50 basis points to 21.6% from 21.1%.

Audio Webcast

A live webcast to discuss the Company's fourth quarter and full year 2012
financial results, and first quarter and full year 2013 outlook will be held
today, February 7, 2013, at 10:00 a.m. EST. Investors may access the webcast
and accompanying slide presentation on the Company's website at www.iff.com
under the Investor Relations section. For those unable to listen to the live
broadcast, a recorded version of the webcast will be made available on the
Company's website approximately one hour after the event and will remain
available on IFF’s website for one year.

About IFF

International Flavors & Fragrances Inc. (NYSE: IFF) is a leading global
creator of flavors and fragrances used in a wide variety of consumer products.
Consumers experience these unique scents and tastes in fine fragrances and
beauty care, detergents and household goods, as well as beverages, sweet goods
and food products. The Company leverages its competitive advantages of
consumer insight, research and development, creative expertise, and customer
intimacy to provide customers with innovative and differentiated product
offerings. A member of the S&P 500 Index, IFF has more than 5,700 employees
working in 32 countries worldwide. For more information, please visit our
website at www.iff.com.

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 (i) the Company’s belief on the impact of its research strategy on
future consumer needs and preferences, (ii) the Company’s expectation
regarding the impact of its partnership with Evolva and (iii) the Company’s
expectations regarding its competitive position in the market and its
financial operational expectations for 2013. 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 28, 2012. 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) the general worldwide economic climate
and the economic climate for the Company’s industry and demand for the
Company’s products; (2) fluctuations in the price, quality and availability of
raw materials; (3) changes in consumer preferences; (4) the Company’s ability
to implement its business strategy, including the achievement of anticipated
cost savings, profitability, realization of price increases and growth
targets; (5) the Company’s ability to successfully develop new and competitive
products and enter and expand its sales in new and other emerging markets; (6)
the impact of currency fluctuations or devaluations in the Company’s principal
foreign markets; (7) unanticipated costs and construction delays in the
expansion of the Company’s facilities; (8) the effect of legal and regulatory
proceedings, as well as restrictions imposed on the Company, its operations or
its representatives by U.S. and foreign governments; (9) adverse changes in
federal, state, local and foreign tax legislation or adverse results of tax
audits, assessments, or disputes; (10) the direct and indirect costs and other
financial impact that may result from any business disruptions due to
political instability, armed hostilities, incidents of terrorism, natural
disasters, or the responses to or repercussion from any of these or similar
events or conditions; (11) the ability of Evolva to develop an alternative
route for vanillin which will meet consumers and the Company’s clients’ needs
and (12) adverse changes due to accounting rules or regulations. 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 update
or revise any forward-looking statements, whether as a result of new
information, future events, or otherwise.

                                                                           
International Flavors & Fragrances Inc.
Consolidated Income Statement
(Amounts in thousands except per share data)
(Unaudited)
                                                                                    
                     Three Months Ended                 Twelve Months Ended
                     December 31,                       December 31,
                                                                                    
                      2012       2011       %         2012         2011        %
                                               Change                               Change
                                                                                    
Net sales            $ 680,558   $ 644,383     6        $ 2,821,446   $ 2,788,018   1
Cost of goods         393,490    399,985    (2   )    1,645,912    1,683,362   (2   )
sold
Gross margin           287,068     244,398     17         1,175,534     1,104,656   6
Research and           62,245      52,459      19         233,713       219,781     6
development
Selling and            125,594     134,349     (7   )     453,535       443,974     2
administrative
Restructuring
and other              -           9,805       (100 )     1,668         13,172      (87  )
charges
Interest               10,423      10,670      (2   )     41,753        44,639      (6   )
expense
Other expense         116        (3,415  )   (103 )    1,450        9,544       (85  )
(income), net
Pretax income          88,690      40,530      119        443,415       373,546     19
Income taxes          20,571     16,136     27        189,281      106,680     77
Net income           $ 68,119    $ 24,394     179      $ 254,134     $ 266,866     (5   )
                                                                                    
                                                                                    
                                                                                    
Earnings per         $ 0.83      $ 0.30                 $ 3.11        $ 3.30
share - basic
Earnings per
share -              $ 0.83      $ 0.30                 $ 3.09        $ 3.26
diluted
                                                                                    
Average shares outstanding
Basic                  81,318      80,677                 81,108        80,456
Diluted                81,998      81,596                 81,833        81,467
                                                                                    

                                                           
International Flavors & Fragrances Inc.
Condensed Consolidated Balance Sheet
(Amounts in thousands)
(Unaudited)
                                                                  
                                                December 31,    December 31,
                                                 2012             2011
Cash & cash equivalents                        $ 324,422        $ 88,279
Receivables                                      499,443          472,346
Inventories                                      540,658          544,439
Other current assets                            208,036         212,156
Total current assets                             1,572,559        1,317,220
                                                                  
Property, plant and equipment, net               654,641          608,065
Goodwill and other intangibles, net              702,270          708,345
Other assets                                    320,130         331,951
Total assets                                   $ 3,249,600      $ 2,965,581
                                                                  
Bank borrowings and overdrafts, and
current portion of long-term debt              $ 150,071        $ 116,688
Other current liabilities                       472,661         447,878
Total current liabilities                        622,732          564,566
                                                                  
Long-term debt                                   881,104          778,248
Non-current liabilities                          493,209          515,360
                                                                  
Shareholders' equity                            1,252,555       1,107,407
Total liabilities and shareholders'            $ 3,249,600      $ 2,965,581
equity
                                                                  

                                               
International Flavors & Fragrances Inc.
Consolidated Statement of Cash Flows
(Amounts in thousands)
(Unaudited)
                                                   
                                                   Twelve Months Ended
                                                   December 31,
                                                   2012          2011
Cash flows from operating activities:
                                                                  
Net income                                         $ 254,134      $ 266,866
Adjustments to reconcile to net cash
provided by operating activities:
Depreciation and amortization                        76,667         75,327
Deferred income taxes                                (15,878  )     25,357
Gain on disposal of assets                           (4,461   )     (3,184   )
Stock-based compensation                             19,716         20,547
Pension settlement/curtailment                       874            3,583
Spanish tax charge                                   72,362         -
Payments pursuant to Spanish tax settlement          (105,503 )     -
Changes in assets and liabilities
Trade receivables                                    (33,056  )     (35,697  )
Inventories                                          4,571          (25,199  )
Accounts payable                                     (740     )     (5,859   )
Accruals for incentive compensation                  34,632         (49,964  )
Other current payables and accrued expenses          29,203         (45,491  )
Changes in other assets/liabilities                 558          (37,096  )
Net cash provided by operating activities           333,079      189,190  
                                                                  
Cash flows from investing activities:
                                                                  
Additions to property, plant and equipment           (126,140 )     (127,457 )
Purchase of insurance contracts                      (1,127   )     (1,936   )
Maturities of net investment hedge                   1,960          (2,475   )
Proceeds from disposal of assets                    1,763        705      
Net cash used in investing activities               (123,544 )    (131,163 )
                                                                  
Cash flows from financing activities:
Cash dividends paid to shareholders                  (130,943 )     (90,250  )
Net change in revolving credit facility              138,756        92,662
borrowings and overdrafts
Repayments of long-term debt                         -              (123,708 )
Proceeds from issuance of stock under stock          9,211          14,656
plans
Excess tax benefits on stock-based payments         8,380        5,933    
Net cash provided by (used in) financing            25,404       (100,707 )
activities
Effect of exchange rates changes on cash and         1,204          (373     )
cash equivalents
Net change in cash and cash equivalents              236,143        (43,053  )
Cash and cash equivalents at beginning of           88,279       131,332  
year
Cash and cash equivalents at end of period         $ 324,422     $ 88,279   
                                                                             

                                                          
International Flavors & Fragrances Inc.
Business Unit Performance
(Amounts in thousands)
(Unaudited)
                                                                 
                     Three Months Ended          Twelve Months Ended
                     December 31,                December 31,
                      2012        2011        2012          2011      
Net Sales
Flavors              $ 326,445     $ 322,736     $ 1,378,377     $ 1,347,340
Fragrances            354,113     321,647     1,443,069     1,440,678 
Consolidated           680,558       644,383       2,821,446       2,788,018
                                                                 
Segment Profit
Flavors                61,867        63,127        298,326         284,246
Fragrances             53,333        36,925        238,379         226,560
Global                 (15,971 )     (8,967  )     (48,419   )     (36,410   )
Expenses
Restructuring
and other              -             (9,805  )     (1,668    )     (13,172   )
charges, net
Patent
Settlement            -           (33,495 )    -             (33,495   )
Litigation
Operating              99,229        47,785        486,618         427,729
profit
                                                                 
Interest               (10,423 )     (10,670 )     (41,753   )     (44,639   )
Expense
Other
(expense)             (116    )    3,415       (1,450    )    (9,544    )
income, net
Income before        $ 88,690     $ 40,530     $ 443,415      $ 373,546   
taxes
                                                                 
Profit Margin
Flavors                19.0    %     19.6    %     21.6      %     21.1      %
Fragrances             15.1    %     11.5    %     16.5      %     15.7      %
Consolidated           14.6    %     7.4     %     17.2      %     15.3      %


                  
International Flavors & Fragrances Inc.
Sales Performance by Region and Category
(Unaudited)
                       
                       % Change in Sales - Fourth Quarter 2012 vs. Fourth Quarter
                       2011
                       Fine &                              Total
                       Beauty  Functional  Ingredients  Frag.  Flavors  Total
                       Care
                                                                       
North   Reported       17%      7%           9%            10%     3%        7%
America
                                                                             
EAME    Reported       -1%      1%           5%            1%      -2%       0%
        Local          5%       6%           10%           7%      3%        5%
        Currency
                                                                             
Latin   Reported       53%      14%          -10%          26%     0%        16%
America
        Local          59%      15%          -9%           29%     4%        20%
        Currency
                                                                             
Greater Reported       4%       21%          -5%           12%     3%        6%
Asia
        Local          5%       22%          -4%           13%     4%        7%
        Currency
                                                                             
Total   Reported       15%      9%           3%            10%     1%        6%
        Local          19%     12%         6%           13%    3%       8%
        Currency
                                                                             
                                                                             
                       % Change in Sales - Full Year 2012 vs. Full Year 2011
                       Fine &                              Total
                       Beauty  Functional  Ingredients  Frag.  Flavors  Total
                       Care
                                                                             
North   Reported       6%       3%           -5%           2%      3%        2%
America
                                                                             
EAME    Reported       -7%      -1%          -17%          -7%     -1%       -5%
        Local          0%       6%           -13%          -1%     6%        2%
        Currency
                                                                             
Latin   Reported       22%      11%          -9%           13%     0%        9%
America
        Local          26%      12%          -8%           15%     4%        12%
        Currency
                                                                             
Greater Reported       1%       5%           -16%          1%      5%        4%
Asia
        Local          3%       6%           -16%          1%      7%        5%
        Currency
                                                                             
Total   Reported       3%       4%           -12%          0%      2%        1%
        Local          7%      7%          -10%         3%     5%       4%
        Currency

Note: Local currency sales growth is calculated by translating prior year
sales at the exchange rates used for the corresponding 2012 period

International Flavors & Fragrances Inc.
Reconciliation of Like-for-Like Sales Growth
(Unaudited)

The following information and schedules provide reconciliation information
between reported GAAP amounts and certain adjusted amounts. This information
and schedules is not intended as, and should not be viewed as, a substitute
for reported GAAP amounts or financial statements of the Company prepared and
presented in accordance with GAAP.

                                                          
% Change in Sales for the Three Months Ended December 31, 2012
                                                    
              
                  Reported      Local          Exit of Low-   Like-For-Like
              Sales        Currency      Margin Sales  Sales Growth
                  Growth        Sales Growth   Activities     ^(2)
                                ^(1)
Total          6%           8%            2%            10%
Company
                                                              
Flavors:
North             3%            3%             12%            15%
America
EAME              -2%           3%             1%             4%
Latin             0%            4%             2%             6%
America
Greater           3%            4%             1%             5%
Asia
Total             1%            3%             4%             7%
Flavors
                                                    
                                                              
                                                              
% Change in Sales for the Twelve Months Ended December 31, 2012
                                                    
                                                              
                  Reported      Local          Exit of Low-   Like-For-Like
              Sales        Currency      Margin Sales  Sales Growth
                  Growth        Sales Growth   Activities     ^(2)
                                ^(1)
Total          1%           4%            1%            5%
Company
                                                              
Flavors:
North             3%            3%             6%             9%
America
EAME              -1%           6%             1%             7%
Latin             0%            4%             2%             6%
America
Greater           5%            7%             1%             8%
Asia
Total             2%            5%             3%             8%
Flavors
                                                              

(1)  Local currency sales growth is calculated by translating prior year
      sales at the exchange rates used for the
      corresponding 2012 period
(2)   Like-for-like is a non-GAAP metric that excludes the impact of exiting
      low-margin sales activities and foreign exchange


International Flavors & Fragrances Inc.
Reconciliation of Income
(Amounts in thousands)
(Unaudited)

The following information and schedules provide reconciliation information
between reported GAAP amounts and certain adjusted amounts. This information
and schedules is not intended as, and should not be viewed as, a substitute
for reported GAAP amounts or financial statements of the Company prepared and
presented in accordance with GAAP.

In the fourth quarter of 2012, there were no items impacting comparability.

                                                                    
                     
                     Fourth Quarter 2011
                     Items Impacting Comparability
                     Reported          Patent       Restructuring          Adjusted
                     (GAAP)          Litigation   and Other              (Non-GAAP)
                                       Settlement   Charges
                                                                           
Net Sales            644,383           -            -
Cost of Goods        399,985           -            -
Sold
Gross Profit         244,398           -            -
Research and         52,459            -            -
Development
Selling and          134,349           (33,495)     -                      100,854
Administrative
RSA Expense          186,808           (33,495)     -                      153,313
Restructuring
and other            9,805             -            (9,805)         ^(a)   -
charges, net
Operating            47,785            33,495       9,805                  91,085
Profit
Interest             10,670            -            -
Expense
Other (income)       (3,415)           -            -
expense, net
Income before        40,530            33,495       9,805                  83,830
taxes
Income Taxes         16,136            (3,649)      (2,901)                22,686
Net Income           24,394         29,846      6,904               61,144
                                                                           
Earnings per
share -              $0.30      ^(b)   $0.36        $0.08                  $0.74
diluted
                                                                           

(a)  Primarily related to category realignment and reduction in workforce
      ($8M Fragrances, $1.5M Flavors and $0.5M Corporate)
      The sum of EPS Reported, plus the per share effects of items added back
(b)   to reconcile to EPS as Adjusted, may not equal the total EPS as
      Adjusted, due to rounding differences

International Flavors & Fragrances Inc.
Reconciliation of Income
(Amounts in thousands)
(Unaudited)

The following information and schedules provide reconciliation information
between reported GAAP amounts and certain adjusted amounts. This information
and schedules is not intended as, and should not be viewed as, a substitute
for reported GAAP amounts or financial statements of the Company prepared and
presented in accordance with GAAP.

                                                                   
                     Full Year 2012
                     Items Impacting Comparability
                     Reported    Spanish             Restructuring          Adjusted
                     (GAAP)      Tax                 and Other              (Non-GAAP)
                                 Settlement          Charges
                                                                            
Net Sales            2,821,446     -                 -
Cost of Goods        1,645,912     -                 -
Sold
Gross Profit         1,175,534     -                 -
Research and         233,713       -                 -
Development
Selling and          453,535       -                 -
Administrative
RSA Expense          687,248       -                 -
Restructuring
and other            1,668         -                 (1,668    )     ^(b)   -
charges, net
Operating            486,618       -                 1,668                  488,286
Profit
Interest             41,753        -                 -
Expense
Other (Income)       1,450         -                 -
expense, net
Income before        443,415       -                 1,668                  445,083
taxes
Taxes on             189,281       72,362     ^(a)   (621      )            117,540
Income
Net Income           254,134     72,362        1,047              327,543
                                                                            
Earnings per
share -              $3.09       $ 0.88              $0.01                  $3.98
diluted
                                                                            

      Pursuant to the Spanish tax settlement announced on August 2; includes a
(a)  $0.71 per share charge to net income covering the fiscal years 2004 -
      2010, and a $0.17 per share accrual for uncertain tax positions for
      years not settled
(b)   Related to restructuring program announced in Q1 2012

                                                                   
                     Full Year 2011
                     Items Impacting Comparability
                                                                            
                     Reported           Patent       Restructuring          Adjusted
                     (GAAP)             Litigation   and Other              (Non-GAAP)
                                        Settlement   Charges
                                                                            
Net Sales            2,788,018          -            -
Cost of Goods        1,683,362          -            -
Sold
Gross Profit         1,104,656          -            -
Research and         219,781            -            -
Development
Selling and          443,974            (33,495)     -                      410,479
Administrative
RSA Expense          663,755            (33,495)     -                      630,260
Restructuring
and other            13,172             -            (13,172)        ^(a)   -
charges, net
Operating            427,729            33,495       13,172                 474,396
Profit
Interest             44,639             -            -
Expense
Other (income)       9,544              -            -
expense, net
Income before        373,546            33,495       13,172                 420,213
taxes
Income Taxes         106,680            (3,649)      (3,728)                114,057
Net Income           266,866         29,846      9,444               306,156
                                                                            
Earnings per
share -              $3.26       ^(b)   $0.36        $0.11                  $3.74
diluted
                                                                            

      Related to category realignment and reduction in workforce ($8M
(a)  Fragrances, $1.5M Flavors and $0.5M Corporate) and Fragrance European
      facility rationalization ($3.4M)
      The sum of EPS Reported, plus the per share effects of items added back
(b)   to reconcile to EPS as Adjusted, may not equal the total EPS as
      Adjusted, due to rounding differences

Contact:

Investor Relations:
International Flavors & Fragrances Inc.
Shelley Young, 212-708-7271
Director, Investor Relations
 
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