8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

June 5, 2013

Date of Report (Date of earliest event reported)

INTERNATIONAL FLAVORS & FRAGRANCES INC.

(Exact Name of Registrant as Specified in Charter)

NEW YORK	1-4858	13-1432060
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

521 WEST 57^th STREET

NEW YORK, NEW YORK 10019

(Address of Principal Executive Offices) (Zip Code)

(212) 765-5500

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01. Regulation FD Disclosure.

As previously announced, International Flavors & Fragrances Inc. (the “Company”) is holding its 2013 Investor Day on Wednesday, June 5, 2013 in New York, New York. Interested parties can access a live audio webcast within the Investor Relations section of the Company’s website at www.iff.com. For those unable to listen to the live audio webcast, a replay will be accessible on the Investor Relations section of the Company’s website approximately 48 hours after the event and will remain available for one year after the event. The presentations beginning at 11:00 a.m. EDT are being furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Cautionary Statement Regarding Forward-Looking Information

The presentations furnished with this Current Report on Form 8-K include “forward-looking statements” under the Federal Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s expectations concerning its future results, performance and the growth opportunities for the business, its product portfolio and R&D pipeline, the expected development of commercialization of sustainable, cost-effective ingredients, and its ability to execute on its long-term strategic plan and reach its long-term goals. These forward-looking statements are qualified in their entirety by cautionary statements and risk factor disclosures contained in the Company’s SEC filings, including the Company’s Annual Report on Form 10-K filed with the SEC on February 26, 2013. The Company wishes to caution readers that certain important factors may affect 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, the economic climate for the Company’s industry and demand for the Company’s products, fluctuations in the price, quality and availability of raw materials, changes in consumer preferences, the effects of any unanticipated costs and construction or start-up delays in the expansion of any of the Company’s facilities, the Company’s ability to implement its business strategy, including the achievement of anticipated cost savings, profitability, realization of growth targets, the Company’s ability to successfully develop new and competitive products and to enter and expand its sales in new and other emerging markets. 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.

Non-GAAP Financial Measures

Certain of the presentations furnished with this Current Report on Form 8-K contain non-GAAP financial measures, including (i) adjusted EPS, (ii) adjusted operating profit, (iii) adjusted operating profit margin, (iv) local currency sales, (v) LFL, or like-for-like local currency sales, (vi) adjusted effective tax rate, (vii) adjusted segment profit, (viii) adjusted segment profit margin, (ix) adjusted return on invested capital, (x) core working capital and (xi) adjusted cash flow from operations. These measures are not intended to represent a presentation in accordance with GAAP. In discussing the Company’s historical and expected future results and financial condition, the Company believes it is meaningful for investors to be made aware of and to be

assisted in a better understanding of, on a period-to-period comparable basis, financial amounts both including and excluding identified items. The Company believes such non-GAAP measures provide investors with an overall perspective of the period-to-period performance of its business. In addition, management internally reviews each of these non-GAAP measures to evaluate performance on a comparative period-to-period basis in terms of absolute performance, trends and expected future performance with respect to our business. A material limitation of these non-GAAP measures is that such measures do not reflect actual GAAP amounts. The Company compensates for such limitations by presenting the reconciliations contained in the furnished presentations to the most directly comparable GAAP measure. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Investor Day Presentation Materials dated June 5, 2013.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	INTERNATIONAL FLAVORS & FRAGRANCES INC.
Date: June 5, 2013	By:	/s/ Kevin C. Berryman
	Name:	Kevin C. Berryman
	Title:	Executive Vice President
		and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Investor Day Presentation Materials dated June 5, 2013.

EX-99.1

Exhibit 99.1

Exhibit 99.1

Investor Day

2013

Operations

Francisco Fortanet

SVP, Operations

June 5, 2013

Operations Strategy

Reliable Service and Quality

#1 Priority is Customer Satisfaction

Reduce Cost and Optimize

Cash Flow

Productivity and Quality Agenda driven by Continuous Improvement

Manufacturing Footprint Strategy

Support growth of the business in all regions; focus on emerging markets

Reduce cost in all geographies; with emphasis in mature markets

29 Manufacturing Sites

Manufacturing Footprint Strategy:

Leverage Geographic Reach

Capex as % of Sales

5%

4%

3%

2% 4.4% 4-5%

3.1% ~3%

1%

0%

2003 - 2009 2010 - 2012 2013 - 2015 2016 - 2018

Singapore

2012

China

2013

Turkey

2015

Manufacturing Footprint Strategy:

Maximize Our Portfolio

Revenue in the Mature Markets is Now < 50% of the Global Compounds Business, while Labor Cost is ~ 75%

Europe – From 10 to 7 plants*, including Sweden

USA – From 7 to 4 plants*, including Augusta

Oceania – from 2 to 1 plants

Move activities to lower labor cost geographies leveraging the IT platform

*Since 2004

Capital Deployment Benchmarks

Fixed Asset Turnover

4.5 X

3.5 x

IFF Peers*

Best-in-class efficiency versus peers

Highest published ROIC relative to industry

Source: Stifel Nicolaus Analyst Report - FY 2012

* Peers include Givaudan, Symrise, China F&F, Frutarom, Sensient, T. Hasegawa and Takasago

Productivity and Quality:

The Cornerstone of Our Operations Strategy

Innovation in Operations = Finding a Better Way

People

Tools

Processes

Productivity = Shareholder Value

% Growth (CAGR) 2008 to 2012

7.0%

6.0% 5.8%

5.0%

4.0% 3.7%

3.0%

2.0%

1.0%

0.0%

Sales Mfg. Cost

Quality = Customer Trust

Over 60% Reduction in External Defect Rate

% External Defect Rate

0.27 0.22 0.17 0.12 0.07 0.02

2006 2007 2008 2009 2010 2011 2012 2013

Global Procurement Strategy

Our Approach…

People

Processes and Systems

~70% of COGS is Raw Materials

Sourcing Strategies

IFF’s Sustainability Strategy

Our Products:

Creating Innovative Customer Solutions

Our Impact:

Strengthening Eco-Efficiency

& Community Relationships

Our Sources:

Sourcing Responsibly

Our People:

Engaging & Inspiring Our Employees

Sustainability Performance 2010-2012

Eco-efficiency

-11.4 % Scope 1 & 2 carbon emissions

-9.1 % Energy use

-27.4 % Water use

-29.2 % Hazardous waste

Right Direction!

Summary

Our #1 job is to satisfy our customers

Productivity and quality are the cornerstone of the operations strategy

Our best asset is our people

We are delivering results – strong manufacturing leverage, excellent reduction in waste and highest published industry ROIC

Well-Positioned to Capture Future Growth

Investor Day

2013

Operations

Investor Day 2013

Innovation

The Foundation of our Success

Kevin Berryman

EVP & CFO

June 5, 2013

Execution on Strategic Growth Pillars

Leverage

Geographic Reach

Strengthen

Innovation Platform

Maximize

Portfolio

Accelerating Top-Line Growth

8%

9% Based on Local Currency Sales Growth

6%

7%

3%

4%

5% IFF Long-term

Targets

1%

2%

0%

2004-2006

2007-2009

2010-2012

Emerging Market Presence is Building

60%

Nearly 50% of Sales to Emerging Markets

56% FY 54% FY 53% FY 51% Q1

55%

45%

50%

40%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 44% FY 46% FY 47% FY 49% Q1

2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013

Developed Emerging

Emerging Market Presence is Building

55%

Over 50% of Flavor and Fragrance Compound Sales to Emerging Markets

53% FY 52% FY 50% FY 48% Q1

50%

45%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 47% FY 48% FY 50% FY 52% Q1

2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013

Developed Emerging

Gross Margin Impact (2011-2012) of Input Cost Pressure

Gross Margin Enhancement

Gross Margin

(FY 2010-2012 - %)

Gross Margin

(Q1 2010-2013 - %)

41.7 2.7 2.7 41.7 3.3 42.9

41.3 1.7

FY 2010 Net Price and

Input Costs

Strategic

Initiatives

FY 2012 Q1 2010 Net Price and

Input Costs

Strategic

Initiatives

Adj. Q1 2013

Maximize Portfolio – Improved EP

94% of Portfolio is now EP neutral or Positive

2010 Portfolio Value Breakdown 2012 Portfolio Value Breakdown

% Capital Employed % Capital Employed

15%

15%

6%

65%

20%

79%

EP Positive EP Break-even EP Negative EP Positive EP Break-even EP Negative

Adjusted Operating Profit Growth

12%

8%

10%

IFF Long-term

Targets

4%

6%

g

2%

7-9%

0%

2004-2006

2007-2009

2010-2012

2013-2015

Adjusted Effective Tax Rate

32%

Below the Line Leverage

30%

28%

26% <26.5%

24%

2004 - 2006 2007 - 2009 2010 - 2012 2013 - 2015

2013 – 2015 = Company Estimates

Adjusted EPS Growth (3-Year CAGR)

4%

16%

10%

12%

14%

IFF Long-term

Targets

6%

8%

2%

4%

10+%

0%

2004-2006

2007-2009

2010-2012

2013-2015

Increased Working Capital Efficiency

%

35%

Core Working Capital as a % of Net Sales

32%

33%

34%

30%

31%

28%

29%

<31%

27%

2008 2009 2010 2011 2012 2013 - 2015

2013 – 2015 = Company Estimates

Adjusted Return on Invested Capital

20%

3-Year Average

15%

14%

16% 18% 10% 18+%

5%

0%

2004 - 2006 2007 - 2009 2010 - 2012 2013 - 2015

2013 – 2015 = Company Estimates

Adjusted Operating Cash Flow

1,200

In $ Millions 3-Year Cumulative

800

1,000

600

$1B +

200

400

0

2004 - 2006 2007 - 2009 2010 - 2012 2013 - 2015

2013 – 2015 = Company Estimates

Uses of Cash

Allocation based on principles of Financial Flexibility

Capital

Expenditures

Financial

Acquisition/ Flexibility

Development

Opportunities

Cash

Returned to

shareholders

Capital Expenditures

5%

Increased Investment in Capacity and Technology in Emerging Markets

4%

4.4% 4-5%

2%

3%

3.4% ~3%

1%

%

0%

2003 - 2009 2010 - 2012 2013 - 2015 2016 - 2018

2013 – 2018 = Company Estimates

Cash Returned to Shareholders

• Strong Track Record of

Returning Cash to Shareholders

Annual Cash

Dividend Declared

$1.30

• Increased dividend

9 times in 10 years

$

0.88

$0.96

$1.00

$1.04

$1.16

• Historical dividend payout

$0.60 $0.63 ratio of 30-35%

$0.69

$0.73

$0.77

• Authorized $250 million

share buyback

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013+

M&A Activity

• Routinely evaluate M&A opportunities

Augment our Organic Growth Strategy

– F&F companies participating in attractive markets

– F&F companies operating in geographies

where we are under- represented

– F&F companies with differentiated technology

• Evaluate consistent with principles

of Economic Profit

• Will consider adjacencies that bolster long-term growth prospects

Reconfirming Our Long-Term Financial Targets

Local Currency

Sales Growth

Adjusted Operating

Profit Growth

Adjusted EPS

Growth

4- 6% 7- 9% 10+%

Total Shareholder Return

60%

Five-Year Total Shareholder Return*

(December 31, 2007 – December 31, 2012) • Returns greatly exceeds

that of the S&P Index

Group

40%

50%

and Peer • Performance driven by both

share price 20%

30%

appreciation

and payout of dividends

10%

0%

IFF S&P 500 Index Peer Group

*Includes the reinvestment of dividends. Please refer to the Company’s Form 10-K as filed with the SEC on February 26, 2013 for further information on the above chart

Summary

Geographically Diversified Company with Steady Growth

Partnered with Leading Global Consumer Companies

Strong Innovation Platforms – Focused on Consumer

Strong Financial Performance and Cash Flow

Abilityto Deliver Strong Returns Longer-Term

Investor Day 2013

Innovation

The Foundation of our Success

Investor Day

2013

Closing Remarks

Doug Tough

Chairman of the Board & Chief Executive Officersw

June 5, 2013

Innovation - Foundation for Our Success

Allocate resources to seize growth opportunities in emerging markets Align R&D Spend with Opportunities – in terms of category growth and EP profile Use EP principles to develop a stronger portfolio to deliver a higher ROIC

Invest behind advantaged businesses and remediate less profitable areas

Innovation - discovering new ways to create unique experiences that enhance consumers’ lives

Strategy Recap

Leverage Geographic Reach

Growth rates in emerging markets are 2-3x developed markets

New manufacturing capacity being added

Increase regional coverage via labs & commercial offices

Strengthen Innovation Platform

R&D pipeline has significantly strengthened

Research programs are well aligned with BU strategies

Align research spend with opportunities

Maximize Portfolio

Exiting of cumulative $55 million of Flavors sales

Significant progress made in driving EP improvements

Adjusted ROIC has improved

basis points over last

years

Strategic Priorities Going Forward

Leverage Geographic Reach

Increasing investments in emerging markets to support growth

$50 investment in Turkey to serve customers in Africa, Eastern Europe and Middle East and Central Asia

Leverage Singapore liquid Fragrances & Flavors plant, and ensure Southeast Asia capacity needs are met

China plant fully operational in 2013; leverage Satellite Labs in Chengdu and Beijing

Strategic Priorities Going Forward

Strengthen Innovation Platform

Build strong molecule pipeline

Continue to develop High-impact molecules

Extend encapsulation to other categories

Leverage expertise in Natural Ingredients

Leverage Flavors modulation tool-box

Enhance Delivery Systems in Flavors and Fragrances

Leverage experience and relationships of SAB to support R&D

Strategic Priorities Going Forward

Maximize Portfolio

Improve Economic Profile of business

Realize remaining $25 million operating profit opportunity

Focus on innovation, profitability and return on investment

Apply a disciplined approach to investing

Leverage strong margin profile and cash flow generation

Summary

Strategic Priorities

Invest in Innovation

Grow Footprint in Emerging Markets and Improve Coverage

Improve Value of Portfolio by Prioritizing Higher Margin Businesses

Drive Greater Efficiency to Gain Operational Leverage

Long-Term Financial Expectations

Local currency sales growth of 4% to 6%

Adjusted Operating Profit growth of 7 – 9%

Adjusted EPS growth of 10+%

Through Portfolio Mix, Product

Innovation & Manufacturing Leverage

Investor Day

2013

Innovation

The Foundation of Our Success

ANNUAL REVENUE GROWTH
	2004			2005			2006			3-Year			2007			2008			2009			3-Year			2010			2011			2012			3-Year
Total Company
Reported Sales Growth		7	%		-2	%		5	%		3	%		9	%		5	%		-3	%		4	%		13	%		6	%		1	%		7	%
Currency Impact		-5	%		-1	%		0	%					-4	%		-3	%		3	%					0	%		-2	%		3	%
Local Currency Sales Growth		2	%		-3	%		5	%		1	%		5	%		2	%		0	%		2	%		13	%		4	%		4	%		7	%
Flavors
Reported Sales Growth														12	%		9	%		-1	%		7	%		11	%		12	%		2	%		8	%
Currency Impact														-3	%		-3	%		3	%					-1	%		-3	%		3	%
Local Currency Sales Growth														9	%		6	%		2	%		6	%		10	%		9	%		5	%		8	%
Exit of Flavors Low Margin Sales Activities														0	%		0	%		0	%					0	%		0	%		3	%
Like-For-Like Local Currency Sales Growth														9	%		6	%		2	%		6	%		10	%		9	%		8	%		9	%
Fragrance Compounds
Reported Sales Growth														5	%		1	%		-4	%		1	%		14	%		4	%		3	%		7	%
Currency Impact														-4	%		-2	%		3	%					1	%		-3	%		4	%
Local Currency Sales Growth														1	%		-1	%		-1	%		0	%		15	%		1	%		7	%		8	%
Ingredients
Reported Sales Growth														9	%		5	%		-4	%		3	%		15	%		-6	%		-12	%		-1	%
Currency Impact														-4	%		-4	%		2	%					3	%		-3	%		2	%
Local Currency Sales Growth														5	%		1	%		-2	%		1	%		18	%		-9	%		-10	%		0	%

QUARTERLY REVENUE GROWTH
	Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011			Q2 2011			Q3 2011			Q4 2011			Q1 2012			Q2 2012			Q3 2012			Q4 2012
Flavors
Reported Sales Growth		13	%		13	%		9	%		10	%		13	%		14	%		13	%		8	%		3	%		5	%		0	%		1	%
Currency Impact		-5	%		-2	%		1	%		1	%		-1	%		-6	%		-5	%		0	%		2	%		3	%		6	%		2	%
Local Currency Sales Growth		8	%		11	%		10	%		11	%		12	%		8	%		8	%		8	%		5	%		8	%		6	%		3	%
Exit of Flavors Low Margin Sales Activities		0	%		0	%		0	%		0	%		0	%		0	%		0	%		0	%		1	%		1	%		3	%		4	%
Like-For-Like Local Currency Sales Growth		8	%		11	%		10	%		11	%		12	%		8	%		8	%		8	%		6	%		9	%		9	%		7	%

The Company uses non-GAAP financial measures such as (i) local currency sales (which eliminates the effects that result from translating its international sales in U.S. dollars) and (ii) like-for-like sales (which excludes the impact of exiting low-margin sales activities, the impact of selling the Company’s fruit preparations business in Europe and foreign exchange) as the Company believes that these non-GAAP financial measures provide investors with an overall perspective of the period-to-period performance of our core business. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

Adjusted Gross Margin
(IN THOUSANDS U.S. $)	FY 2010			Q1 2013			Margin Improvement
As Reported Gross Profit		1,092,602			311,360
Operational Improvement Initiative Costs		—			1,198
Adjusted Gross Profit		1,092,602			312,558
Net Sales		2,622,862			727,836
Adjusted Gross Margin		41.7	%		42.9	%		1.2	%

The Company uses non-GAAP financial measures such as Adjusted Gross Profit and Adjusted Gross Margin (which exclude operational improvement initiative costs) as the Company believes that these non-GAAP financial measures provide investors with an overall perspective of the period-to-period performance of our core business. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

ADJUSTED OPERATING PROFIT
(IN THOUSANDS U.S. $)	2003		2006			3-Year CAGR			2009			3-Year CAGR			2012		3-Year CAGR
As Reported Operating Profit		285,774		331,173			5.0	%		340,288			0.9	%		486,618		12.7	%
Restructuring and Other Charges		42,421		2,680						18,301						1,668
Employee Separation Costs		—		—						6,320						—
Insurance Recovery		—		(3,565	)					—						—
Adjusted Operating Profit		328,195		330,288			0.2	%		364,909			3.4	%		488,286		10.2	%
ADJUSTED EARNINGS PER SHARE (EPS)
(PER SHARE DATA U.S. $)	2003		2006			3-Year CAGR			2009			3-Year CAGR			2012		3-Year CAGR
As Reported EPS		1.83		2.48			10.7	%		2.46			-0.3	%		3.09		7.9	%
Restructuring and Other Charges		0.29		0.02						0.19						0.01
Employee Separation Costs		—		—						0.05						—
Insurance Recovery		—		(0.03	)					—						—
Tax Settlement		—		(0.04	)					—						—
Other Income (Primarily Asset Gains)		—		(0.11	)					—						—
Spanish Tax Settlement		—		—						—						0.88
Adjusted EPS		2.12		2.32			3.1	%		2.69	¹		5.1	%		3.98		13.9	%

¹  The sum of Reported EPS plus the per share effects of items added back to reconcile to Adjusted EPS may not equal the total Adjusted EPS due to rounding differences.

ADJUSTED EFFECTIVE TAX RATE
	2004			2005			2006			2007			2008			2009			2010			2011			2012
As Reported Effective Tax Rate		30.2	%		21.6	%		28.2	%		25.3	%		19.1	%		29.3	%		26.7	%		28.6	%		42.7	%
Restructuring and Other Charges Tax Benefit		0.6	%		1.0	%		0.0	%		—			0.7	%		-0.6	%		-0.4	%		0.0	%		0.0	%
AJCA Tax Benefit		—			9.3	%		—			—			—			—			—			—			—
Tax Settlements		—			—			1.2	%		3.0	%		7.6	%		—			—			—			—
Curtailment Tax Benefit		—			—			—			0.2	%		—			—			—			—			—
Asset Gain Tax Expense		—			—			—			-0.1	%		—			—			—			—			—
Employee Separation Costs Tax Benefit		—			—			—			—			0.2	%		0.1	%		—			—			—
Shared Service Implementation Tax Benefit		—			—			—			—			0.1	%		—			—			—			—
Insurance Recovery Tax Expense		—			—			0.0	%		—			-0.2	%		—			—			—			—
Other Income (Primarily Asset Gains)		—			—			-0.3	%		—			—			—			—			—			—
Patent Litigation Settlement Benefit		—			—			—			—			—			—			—			-1.5	%		—
Spanish Tax Settlement		—			—			—			—			—			—			—			—			-16.3	%
Adjusted Effective Tax Rate		30.8	%		31.9	%		29.1	%		28.4	%		27.5	%		28.8	%		26.3	%		27.1	%		26.4	%

The Company uses non-GAAP financial measures such as Adjusted Operating Profit, Adjusted Effective Tax Rate and Adjusted EPS (which excludes the impact of our restructuring and strategic initiatives, the AJCA tax benefit, tax settlements, curtailments, gains on asset sales, employee separation costs, cost associated with the implementation of our shared services, insurance recoveries, the Mane patent litigation settlement and the Spanish tax settlement) as the Company believes that these non-GAAP financial measures provide investors with an overall perspective of the period-to-period performance of our core business. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

FLAVORS
(IN THOUSANDS U.S. $)	2006			2007			2008			2009			2010			2011			2012			2006 - 2009 CAGR			Since 2009
As Reported Segment Profit*		153,099			187,275			197,838			208,966			242,528			284,246			298,326			10.9	%		12.6	%
Insurance Recovery		(3,565	)		—			—			—			—			—			—
Restructuring and Other Charges		(463	)		—			3,538			—			—			—			—
Adjusted Segment Profit		149,071			187,275			201,376			208,966			242,528			284,246			298,326			11.9	%		12.6	%
Net Sales		894,775			1,005,544			1,092,544			1,081,488			1,203,274			1,347,340			1,378,377
Adjusted Segment Margin		16.7	%		18.6	%		18.4	%		19.3	%		20.2	%		21.1	%		21.6	%
FRAGRANCES
(IN THOUSANDS U.S. $)	2006			2007			2008			2009			2010			2011			2012			2006 - 2009 CAGR			2009 - 2012 CAGR
As Reported Segment Profit*		212,240			211,942			202,081			188,561			244,966			226,560			238,379			-3.9	%		8.1	%
R&D Tax Credit		2,180			—			—			—			—			—			—
Revised Reported Segment Profit		214,420			211,942			202,081			188,561			244,966			226,560			238,379
Restructuring and Other Charges		2,639			—			4,396			—			—			—			—
Adjusted Segment Profit		217,059			211,942			206,477			188,561			244,966			226,560			238,379			-4.6	%		8.1	%
Net Sales		1,200,615			1,271,094			1,296,828			1,244,670			1,419,588			1,440,678			1,443,069
Adjusted Segment Margin		18.1	%		16.7	%		15.9	%		15.1	%		17.3	%		15.7	%		16.5	%

* In the 2009 period, segment profit was referred to as adjusted operating profit and excluded amounts related to restructuring and other costs. In the 2006 - 2008 periods, segment profit was referred to as operating income and included restructuring and other costs as well as insurance recoveries.

The Company uses non-GAAP financial measures such as Adjusted Segment Profit (which excludes the impact of our restructuring and strategic initiatives and insurance recoveries) as the Company believes that these non-GAAP financial measures provide investors with an overall perspective of the period-to-period performance of our core business. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

ADJUSTED RETURN ON AVERAGE INVESTED CAPITAL
(IN THOUSANDS U.S. $)	2003			2004			2005			2006			2007			2008			2009			2010			2011			2012
Debt		884,535			684,926			950,673			807,340			1,212,641			1,255,654			1,011,529			921,567			894,936			1,031,175
Deferred gain on interest rate swaps		(39,685	)		(24,104	)		(2,296	)		(817	)		(151	)		(16,893	)		(14,953	)		(12,897	)		(10,965	)		(9,028	)
Cash and cash equivalents		(12,081	)		(32,596	)		(272,545	)		(114,508	)		(151,471	)		(178,467	)		(80,135	)		(131,332	)		(88,279	)		(324,422	)
Net Debt		832,769			628,226			675,832			692,015			1,061,019			1,060,294			916,441			777,338			795,692			697,725
Equity		742,631			910,487			915,347			916,056			626,359			580,642			771,910			1,003,155			1,107,407			1,252,555
Total Invested Capital		1,575,400			1,538,713			1,591,179			1,608,071			1,687,378			1,640,936			1,688,351			1,780,493			1,903,099			1,950,280
Restructuring and Other Charges, net of tax		27,514			20,370			15,857			1,982			—			12,543			14,763			8,928			9,444			1,047
AJCA Tax Benefit		—			—			(25,000	)		—			—			—			—			—			—			—
Tax Settlements		—			—			—			(3,511	)		(9,718	)		(23,070	)		—			—			—			—
Curtailment, net of tax		—			—			—			—			3,685			—			—			—			—			—
Asset Gain, net of tax		—			—			—			—			(7,719	)		—			—			—			—			—
Employee Separation Costs, net of tax		—			—			—			—			—			2,217			4,028			—			—			—
Shared Service Implementation, net of tax		—			—			—			—			—			1,377			—			—			—			—
Insurance Recovery, net of tax		—			—			—			(2,496	)		—			(1,612	)		—			—			—			—
Other Income (Primarily Asset Gains), net of tax		—			—			—			(10,068	)		—			—			—			—			—			—
Patent Litigation Settlement, net of tax		—			—			—			—			—			—			—			—			29,846			—
Spanish Tax Settlement		—			—			—			—			—			—			—			—			—			72,362
Total Non-recurring Items		27,514			20,370			(9,143	)		(14,093	)		(13,752	)		(8,545	)		18,791			8,928			39,290			73,409
Cumulative Non-recurring Items		27,514			47,884			38,741			24,648			10,896			2,351			21,142			30,070			69,360			142,769
Adjusted Total Invested Capital		1,602,914			1,586,597			1,629,920			1,632,719			1,698,274			1,643,287			1,709,493			1,810,563			1,972,459			2,093,049
As Reported Operating Profit					310,279			266,876			331,173			361,213			355,133			340,288			416,361			427,729			486,618
Restructuring and Other Charges					31,830			23,319			2,680			—			18,212			18,301			10,077			13,172			1,668
Curtailment					—			—			—			5,943			—			—			—			—			—
Employee Separation Costs					—			—			—			—			3,391			6,320			—			—			—
Shared Service Implementation					—			—			—			—			2,079			—			—			—			—
Insurance Recovery					—			—			(3,565	)		—			(2,600	)		—			—			—			—
Patent Litigation Settlement					—			—			—			—			—			—			—			33,495			—
Adjusted Operating Profit					342,109			290,195			330,288			367,156			376,215			364,909			426,438			474,396			488,286
As Reported Effective Tax Rate					30.2	%		21.6	%		28.2	%		25.3	%		19.1	%		29.3	%		26.7	%		28.6	%		42.7	%
Restructuring and Other Charges Tax Benefit					0.6	%		1.0	%		0.0	%		—			0.7	%		-0.6	%		-0.4	%		0.0	%		0.0	%
AJCA Tax Benefit					—			9.3	%		—			—			—			—			—			—			—
Tax Settlements					—			—			1.2	%		3.0	%		7.6	%		—			—			—			—
Curtailment Tax Benefit					—			—			—			0.2	%		—			—			—			—			—
Asset Gain Tax Expense					—			—			—			-0.1	%		—			—			—			—			—
Employee Separation Costs Tax Benefit					—			—			—			—			0.2	%		0.1	%		—			—			—
Shared Service Implementation Tax Benefit					—			—			—			—			0.1	%		—			—			—			—
Insurance Recovery Tax Expense					—			—			0.0	%		—			-0.2	%		—			—			—			—
Other Income (Primarily Asset Gains)					—			—			-0.3	%		—			—			—			—			—			—
Patent Litigation Settlement Benefit					—			—			—			—			—			—			—			-1.5	%		—
Spanish Tax Settlement					—			—			—			—			—			—			—			—			-16.3	%
Adjusted Effective Tax Rate					30.8	%		31.9	%		29.1	%		28.4	%		27.5	%		28.8	%		26.3	%		27.1	%		26.4	%
Adjusted Operating Profit After Tax					236,739			197,623			234,174			262,884			272,756			259,815			314,285			345,835			359,378
Adjusted Return on Invested Capital *					14.8	%		12.3	%		14.4	%		15.8	%		16.3	%		15.5	%		17.9	%		18.3	%		17.7	%

* Return on average invested capital is defined as adjusted operating profit after tax divided by 2-year average adjusted invested capital.

The Company uses non-GAAP financial measures such as Adjusted Return on Invested Capital (ROIC) (which excludes the net impact of our restructuring and strategic initiatives, the AJCA tax benefit, tax settlements, curtailments, gains on asset sales, employee separation costs, cost associated with the implementation of our shared services, insurance recoveries, the Mane patent litigation settlement and the Spanish tax settlement) as the Company believes that these non-GAAP financial measures provide investors with an overall perspective of the period-to-period performance of our core business. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

WORKING CAPITAL EFFEICIENCY
(IN THOUSANDS U.S. $)	Q4 2011			Q1 2012			Q2 2012			Q3 2012			Q4 2012
Trade Receivables (1)		478,177			527,709			523,389			543,133			508,736
Inventories		544,439			555,017			539,267			547,676			540,658
Accounts Payable		(208,759	)		(189,223	)		(169,673	)		(160,956	)		(199,272	)
Core Working Capital		813,857			893,503			892,983			929,853			850,122
FY 2012 Net Sales														2,821,446
Core Working Capital as a % of Net Sales*														31.1	%
(IN THOUSANDS U.S. $)	Q4 2010			Q1 2011			Q2 2011			Q3 2011			Q4 2011
Trade Receivables (1)		460,274			528,541			553,335			524,893			478,177
Inventories		531,675			559,550			568,162			534,765			544,439
Accounts Payable		(200,153	)		(185,205	)		(166,438	)		(180,931	)		(208,759	)
Core Working Capital		791,796			902,886			955,059			878,727			813,857
FY 2011 Net Sales														2,788,018
Core Working Capital as a % of Net Sales*														31.1	%
(IN THOUSANDS U.S. $)	Q4 2009			Q1 2010			Q2 2010			Q3 2010			Q4 2010
Trade Receivables (1)		456,674			480,553			486,638			521,524			460,274
Inventories		444,977			446,912			454,608			503,991			531,675
Accounts Payable		(161,027	)		(154,451	)		(155,056	)		(169,652	)		(200,153	)
Core Working Capital		740,624			773,014			786,190			855,863			791,796
FY 2010 Net Sales														2,622,862
Core Working Capital as a % of Net Sales*														30.1	%
(IN THOUSANDS U.S. $)	Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Trade Receivables (1)		412,127			430,219			484,550			490,549			456,674
Inventories		479,567			452,282			441,007			435,744			444,977
Accounts Payable		(114,997	)		(95,303	)		(117,892	)		(140,597	)		(161,027	)
Core Working Capital		776,697			787,198			807,665			785,696			740,624
FY 2009 Net Sales														2,326,158
Core Working Capital as a % of Net Sales*														33.5	%
(IN THOUSANDS U.S. $)	Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008
Trade Receivables		412,221			464,251			477,195			470,363			412,127
Inventories		484,222			512,034			525,651			509,281			479,567
Accounts Payable		(130,992	)		(133,236	)		(137,178	)		(115,511	)		(114,997	)
Core Working Capital		765,451			843,049			865,668			864,133			776,697
FY 2008 Net Sales														2,389,372
Core Working Capital as a % of Net Sales*														34.4	%

* Core working capital as a % of net sales is defined as 5-quarter average core working capital divided by full year net sales

(1) Q1 2013, Q1 - Q3 2011, Q1 - Q4 2010 and Q4 2009 have been revised to be consistent with other periods presented.

ADJUSTED CASH FLOWS FROM OPERATIONS
(IN THOUSANDS U.S. $)	2004		2005		2006		2004 - 2006		2007		2008		2009		2007 - 2009		2010		2011		2012		2010 - 2012
Cash Flows Provided By Operating Activities		295,847		177,160		281,619		754,626		314,062		220,613		291,637		826,312		315,136		189,190		323,796		828,122
Payments Pursuant To Patent Litigation Settlement		—		—		—				—		—		—				—		39,995		—
Payments Pursuant To Spanish Tax Settlement		—		—		—				—		—		—				—		—		105,503
Adjusted Cash Flows Provided By Operating Activities		295,847		177,160		281,619		754,626		314,062		220,613		291,637		826,312		315,136		229,185		429,299		973,620

The Company uses non-GAAP financial measures such as adjusted cash flows provided by operations (which excludes payments made related to the Mane patent litigation settlement an Spanish tax settlement) as the Company believes that these non-GAAP financial measures provide investors with an overall perspective of the period-to-period performance of our core business. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.