Second Quarter 2011 Results

Doug Tough Chairman & CEO August 9, 2011 Hernan Vaisman President, Flavors Nicolas Mirzayantz President, Fragrances Kevin Berryman EVP & CFO

Cautionary Statement
Statements made in this presentation that relate to our future performance or future financial results or other future events (identified by such terms as expect, anticipate, believe, outlook, guidance, may or similar terms and variations thereof are forward-looking statements, which involve uncertainties that could cause actual performance or results to materially differ. We undertake no obligation to update any of these statements. Listeners are cautioned not to place undue reliance on these forward-looking statements. These statements should be taken in conjunction with our cautionary statement, the additional information about risk factors and other uncertainties set forth in the companys annual report on Form 10-K for the year ended December 31, 2010 and in our other periodic reports filed with the SEC, all of which are available on our website under Investor Relations, at www.iff.com. We have disclosed certain non-GAAP measures within this presentation. Please see reconciliations to their respective measures prescribed by accounting principles generally accepted in the U.S. included on our website at www.iff.com under Investor Relations.

First Quarter 2011 Results

Doug Tough Chairman & Chief Executive Officer

Second Quarter 2011 Results

Q2 2011 Overview
LC Sales Growth +3% Adjusted Operating Margin* 17.0% Adjusted EPS Growth* +14%

Top-line Performance Driven by Portfolio & Geographic Diversification Margins Pressured by Significant Increases in Input Costs Strong Flavors Performance, Continued Cost Discipline & Foreign Exchange Benefits Drove Double-Digit Operating Profit & EPS Growth

* Excludes Non-Recurring Items Please See NonGAAP to GAAP Reconciliation in Q2 11 Press Release

Second Quarter 2011 Results

First Half 2011 Results In Context

H1 2011 Local Currency Sales Growth: Flavors Fragrances Adjusted Operating Profit Growth*: Adjusted Operating Margin* : Adjusted EPS Growth*: 6% 10% 2% 16% +130 bps 18% 2-Year Avg. 10% 10% 11% 24% +150 bps 27% 3-Year Avg. 6% 7% 6% 10% +40 bps 12%

* Excludes Non-Recurring Items Please See NonGAAP to GAAP Reconciliation at IFF.com

Second Quarter 2011 Results

Hernan Vaisman Group President, Flavors

Second Quarter 2011 Results

Flavor Segment Performance

Q2 Local Currency Sales Performance

North America:
H&W solutions drove high single-digit growth

EAME:
E. Europe, Africa & the Middle East provided greatest upside

Latin America:
Strong trends in Confectionery, Savory & Dairy continued

Greater Asia:
Confectionery & Savory grew double-digits
Second Quarter 2011 Results
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Flavor Business Performance

Q2 Reported Sales
In Millions

$345 $304 Operating Margin 21.2% 20.6%

Local Currency Sales +8% Strong performance led by doubledigit growth in the emerging markets Operating Margin (60) bps Profit +$6M Sales growth (pricing & volume) as well as cost discipline offset significant raw material pressure Strong Momentum Continuing in Q3 11

Q2 10

Q2 11

Second Quarter 2011 Results

Nicolas Mirzayantz Group President, Fragrances

Second Quarter 2011 Results

Fragrance Segment Performance

Q2 Local Currency Sales Performance

Fine & Beauty Care:

Results challenged by strongest year-ago comparison

Functional:
New wins & pricing across all categories offset volume erosion

Fragrance Ingredients:
Against difficult comparison, pricing was offset by lower volumes
Second Quarter 2011 Results
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Fragrance Business Performance

Q2 Reported Sales
In Millions

$370 $361 Operating Margin* 18.6% 16.8%

Local Currency Sales (2)% Emerging markets growth mitigated developed markets softness Adjusted Operating Margin* (180) bps & Adjusted Operating Profit $(5)M Double-digit raw material increases more than offset pricing, restructuring benefits & cost discipline Challenging Comparables Expected to Pressure Q3 Results

Q2 10

Q2 11

* Excludes Non-Recurring Items Please See NonGAAP to GAAP Reconciliation in Q2 11 Press Release

Second Quarter 2011 Results

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Kevin Berryman EVP & Chief Financial Officer

Second Quarter 2011 Results

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Q2 2011 Financial Results

Reported Sales Increased 7%

Adjusted Operating Profit Up 11%*

Adjusted EPS Grew 14%*

* Excludes Non-Recurring Items Please See NonGAAP to GAAP Reconciliation in Q2 11 Press Release

Second Quarter 2011 Results

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Input Costs

Raw Material Costs

Year-over-year change

12%

Significant Increases in Input Costs Across Both Businesses Pricing Benefits Expected to Build Throughout Q3 Discussions Underway With Customers Regarding Additional Pricing Actions

4%

Q1 11

Q2 11

Second Quarter 2011 Results

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Research, Selling & Administrative

Adjusted RSA Cost*

In Millions

$175 $162

Lower Incentive Comp & Continued Cost Discipline Drove 360 Bps Decrease YoY Continued Business Reinvestment Throughout Q2

Percentage of Sales 26.3% 22.7%

Q2 10

Q2 11

* Excludes Non-Recurring Items Please See NonGAAP to GAAP Reconciliation in Q2 11 Press Release

Second Quarter 2011 Results

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Currency

U.S. Dollars Per Euro

Q1A 2010 2011 Q2A Q3E Q4E

$1.39 $1.29 $1.27 $1.37 $1.34 $1.43 $1.42 $1.42 11% 12% 4%

Foreign Exchange Beneficial to Q2 Results At Current Rates, Forex Should Be Favorable in H2 11 Expect Hedges to Reduce Volatility Going Forward

Change (4)%

* Euro Spot Rate As of August 8, 2011

Second Quarter 2011 Results

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Cash Flow Review

1H 10 Net Income Working Capital D&A Other Operating Cash Flow Capital Expenditures Dividends $ 131 (26) 40 (17) 128 (37) (40) 1H 11 $ 160 (225) 37 30 2 (46) (43)

Operational Results Drove 22% Improvement in Net Income Working Capital Pressured by Payables & Inventories Capex On-Track to be 5% of Sales in FY 11 Announced 15% Dividend Increase Payable Q4 11 Reduced Outstanding Debt by $100M

Second Quarter 2011 Results

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Doug Tough Chairman & CEO

Second Quarter 2011 Results

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Balance of Year Perspective

H2 2011 Context
1) Comparing to 11% LC Sales Growth Reported in H2 2010 2) Significant Raw Material Pressure Expected to Continue 3) Strengthening of Euro vs. U.S. $ 4) Continued Cost Discipline

H2 2011 Implication
LC Sales Growth In line With Long-Term Targets Greater Pricing Benefits Cost Controls & Forex Driving Operating Profit Growth Below-the-line Leverage Should Provide Double-Digit EPS Growth

Expect FY 2011 Results to be In Line With Long-Term Targets

Second Quarter 2011 Results
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Conclusion
Pleased With Our Performance Through H1 2011, In light of the Challenging Environment

Cautiously Optimistic In Our Outlook

Continue to Make Progress Against Strategic Plan

Second Quarter 2011 Results

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Questions

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