Matthias Haeni Divisional CEO, Taste DAY 2019
Transcript of Matthias Haeni Divisional CEO, Taste DAY 2019
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Matthias Haeni
Divisional CEO, Taste
Taste
INVESTOR DAY 2019
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IFF Investor Day | Nutrition & Ingredients 2
F L AV O R
C O M P O U N D S
Savory
Snacks
Beverages
Sweet
Dairy
S AV O RY
S O L U T I O N S
I N C L U S I O N S
Taura and Inventive
Leagel (Gelato)
TASTE CATEGORIES
Diversified portfolio across three distinct food and beverage businesses
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TASTE MARKET
IFF Investor Day | Taste 3
$24B Market growing at ~4% indexed towards small / local customers
Flavors $12.5B +3%
Savory
Solutions $2.3B +4%
Inclusions $9.0B +6%
Source: Company estimates.
M AR K E T S I Z E AN D G R O W T H
Estimated 2018 Market Size & Growth 5-Year Projected CAGR
Multinationals
Small
/ Local
Medium
/ Regional
C U S T O M E R S
Relative customer segment Market Share
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Industry leader across multiple segments and geographies with strong capabilities
LEGACY TASTE HIGHLIGHTS
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S T R E N G T H S
#2 Globally, with industry-
leading segment profit margin
#1 in select markets (including
India and in US mid-tier)
Robust presence with
multinational companies
Leadership in Modulation
and Delivery Systems
Sensory and consumer insights
tastepoint® by IFF: distinct go-to-
market for mid-tier customers
Re-Imagine programs
Best-in-class talent
F I N AN C I A L S
$1.7B 2018 net sales
$400M (23%) 2018 segment profit
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PROGRESS AGAINST VISION 2020 PRIORITIES Strong strategic and financial accomplishments
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Organic Revenue Growth* Segment Margin
Vision 2020 Financial performance
3% 3% 5%
22% 23%
22% 23%
10%
12%
14%
16%
18%
20%
22%
24%
-1%
1%
3%
5%
7%
9%
11%
2015 2016 2017 2018
Peer Base Reporting Adj.*
4% 5% 5%
7%
Re-Imagine programs
driving growth
tastepoint® by IFF - service model
for mid-tier customers
Continued expansion in
key emerging markets
Strong price realization
and productivity programs
Note: Organic growth is currency neutral; *Non-GAAP metrics; please see Non-GAAP disclosures at ir.iff.com
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IFF Investor Day | Taste 6
Expertise in Savory Solution and Inclusions CAPABILITIES
NATURALS Extensive naturals portfolio
CUSTOMERS 70% Small, mid-tier, and private label customers
GEOGRAPHIES Complementary geographic coverage –
Western, Central and Eastern Europe, Peru,
and Central America
FRUTAROM ENHANCEMENTS Building a stronger & more complete Taste organization
$1.7B 2018
net sales
$2.9B 2018
net sales* Entrepreneurial and collaborative culture TALENT
*Based on the 2018 combined nat sales of these products that are expected to constitute the business once fully implemented
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7 IFF Investor Day | Taste
SETTING THE STAGE FOR VISION 2021
1 MARKET ACCESS Increased access to key customers – small, mid-tier, private label, and multi-nationals
2 INNOVATION Strong pipeline momentum
3 INTEGRATION Taste, Savory Solutions & Inclusions
4 COMPETITION Expanded offerings; new competitors
5 RECENT TRENDS Continued lack of growth with multinationals in Flavors; continued pressure in Savory Solutions
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TASTE STRATEGY SUMMARY Growth at industry-leading margins
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Strategic pillar Priorities
• Continued differentiation through Re-Imagine programs
(Natural, Delivery, Culinary, Modulation, Citrus, Protein)
DRIVE INNOVATION
• Globalize Savory Solutions, Inventive while expanding Taura in the US MANAGE PORTFOLIO
• Targeted investments in Africa, Middle-East, Turkey, and India UNLOCK GROWTH
• Finalize Flavors integration – 3 regions by 2019; EAME by 2020
• Leveraging tastepoint® by IFF model as a blueprint for success
BUSINESS TRANSFORMATION
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INVESTMENT IN TARGETED GROWTH MARKETS Targeting Africa, Middle East, Turkey, and India
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$2B Flavor
potential
+8% Market growth
INDIA NEW DELHI
TURKEY
INDIA BANGALORE
EGYPT
DUBAI
NIGERIA (NEW)
SOUTH AFRICA
IFF location
Source: IAL
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STRONG & DEFINED INNOVATION Continued pursuit of bold and high-value opportunities with Re-Imagine programs
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BOLD OPPORTUNITIES
CONSUMER-DRIVEN
CROSS-CATEGORY
GLOBAL IMPACT
RE- IMAGINE
CITRUS ®
RE- IMAGINE
CULINARY ®
RE- IMAGINE
DELIVERY ®
RE- IMAGINE
MODULATION ®
RE- IMAGINE
NATURAL ®
RE- IMAGINE
PROTEIN ®
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SAVORY SOLUTIONS
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Strategic Rationale
Cross-fertilization of portfolio,
technologies and people
Key segments: Meat and fish, Food
Service, Quick Service Restaurants,
Value-Added Seasoning & Pet Food
Shared creative centers and
go-to-market strategy
in emerging markets
Leverage best practices
and expertise
Globalizing to maximize growth
Primary Locations
SHARED EXPERTISE
AND CAPABILITIES
MEXICO
CANADA UK
SLOVENIA
AUSTRIA
RUSSIA
BRAZIL
THAILAND
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INCLUSIONS International expansion in priority markets
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ST
RA
TE
GIC
PR
IOR
ITIE
S
Fruity snacks
Baked goods
Confectionary
Gelato
Ice cream
(including vegan
and soy-based)
Beverages
Snacks
Baked goods
Ice cream
cereal
Leverage IFF global
footprint for expansion
Flavor and nutrition
delivery systems
Leverage IFF
technologies
and customers
Cross-pollination
of talent
TAURA IN
THE US
GLOBALIZE
INVENTIVE
FROM ASIA
GELATO
& SDFLC
INTERNATIONALLY
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tastepoint® by IFF VIDEO
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FLAVORS INTEGRATION
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Strategic Rationales
Serving faster-growing regional
and local customers
Differentiated service model
Relationship-driven
Speed & agility
Quick to market and innovate
Access to greater
expertise & capabilities
Leveraging tastepoint® by IFF model as a blueprint for success
US EAST COAST
CHINA
EAME
BRAZIL
US WEST COAST
Existing site
Potential new site
DOUBLE-DIGIT
GROWTH
SOUTH
AFRICA
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IFF Investor Day | Taste 16
SU
MM
AR
Y
Strong underlying business with mid-single digit organic growth and industry-leading margin
Focus on targeted high-growth areas in Africa, the Middle East, Turkey, and India
Globalize the expanded portfolio Savory Solutions and Inclusions
Capitalize on tastepoint® by IFF in key markets as a blueprint for success for integration of Frutarom Taste