Hello everyone, my name is Gregory Yep, I'm Chief R&D, Global Integrated Solutions and Sustainability Officer. Today I want to talk to you about our research and development strategy as we just merged between IFF and DuPont Nutrition & Biosciences. As you know, the world around us is changing very, very rapidly. Consumers and customers demand access to innovation earlier than we ever have seen before. Science and innovation advances to unlock new opportunities are paramount, but the good news is the science is evolving very, very rapidly. We can do things we couldn't even do two years ago. Innovation cross-fertilization will be a critical differentiator, but also partnerships and collaborations are going to help us a lot as we can't do everything internally. We need to broaden our capabilities and adapt very, very quickly, but we also need to design our products with sustainability in mind. The value of innovation is paramount for us. Why is innovation important? It's important because of our differentiation for ourselves, but also for our customers. It also increases our customer retention and win rates. It gives us growth in specific areas and also gives us transformable research and stronger reinvestment in areas that are high growth. It's paramount for our long-term success, short, medium, and long term. We have one of the largest R&D spends in the industry, but it's not really about the amount of money. It's about how we take that money and be very efficient with it, with high growth area investments and specific platforms, capabilities, and portfolios. We do this by prioritizing our investments and spending on high return opportunities. In R&D, we have a centralized approach for many, many different reasons. We have an enterprise-level prioritization. We have a holistic R&D strategy, but we also want to be flexible and agile in specific areas, especially in capability sharing, technology synergies, and also anchoring our scientific community to each other through our Fellows program and specific areas of platforms and capabilities. We also want to expand our project management group and also leverage best practices between both companies. In portfolio management, we have a structured approach where we look at two phases of our platforms. One is our discovery programs, where we go through a stage K process, really understanding what's out there in white space areas through breakthrough technologies and then leading capabilities. We then move to a phase two in our projects where we go through market leader pipeline and really look at the payback and financial measures of our R&D program. This is all anchored in our placement versus growth metrics, but also when we look at core, adjacent, and breakthrough technologies when we balance a portfolio. For R&D platforms and capabilities, I'm excited to talk to you about how our capabilities fuel these R&D platforms. If we focus on the middle area, we have many capabilities from the merger of our two companies. We have the sensory science, which is very important in hedonics. We have the clinical research piece, which we centralize, which is important in labeling, but also important that we back all our studies with credible science. Our anecdotal science capabilities, so we can measure and test areas that we've never seen before. Our data science and automation, making quicker decisions on the data science that we use to make decisions to fuel our platforms. Then the material application science. This is very, very key as we look at new areas such as delivery systems where we're looking at new ingredients to take away, for example, areas in microplastics and looking for a more natural, biodegradable, renewable area. Our natural product line is going to continue to grow as we utilize what nature gives us in nature, but also give us areas that we haven't developed before in new types of vegetables, new types of fruits, and new types of unique ingredients that nature has. In the protein pathway engineering, it's very exciting for us because this is we'll capitalize on the CRISPR-Cas technology, but also look at some of the new biotechnical pathways that we have in the engineering piece. Process engineering is going to be very, very important for us as we move forward in really looking at how we drive efficiencies in our operations, but also driving efficiencies how we make specific molecules and specific ingredients moving forward, which leads us to our molecular biology and genomics area. Very, very important as we lead this in the future to how we make specific ingredients and specific molecules. The chemical and biochemical synthesis will continue to be very, very strong in multiple areas to fuel the platforms that I have above in the top. Our delivery systems are also going to be key as we look at biodegradable renewable delivery systems without utilizing plastics. Our health and wellness area will be paramount as we also look at areas such as probiotics and other areas in the skin microbiome. Modulation will be a key component for us as we look at taking salt, fat, and sugar out of our taste areas, but also looking at white space areas in the scent modulation piece of it. When we look at taste and scent ingredients, we have one of the largest pipelines globally, but we also look at how we can learn from chefs and learn from consumers to really create these ingredients for the next generation. This leads us to cosmetic actives, a very high growth area. We look at healthy aging. We look at skin. We also look at beauty within. Also in our functional food ingredients area, this will be very important as we fuel our bodies with the nutrition that we need, but also some of the natural ingredients that are needed as we move forward. In our preservation area, we're looking at natural preservations for the long term, but also cleaner label. Bio-based active enzymes and polymers will continue to be a focus, but also a strength of ours as we move forward to look at unique areas of enzymes and what enzymes can do not only for areas such as cleaning, but also making novel molecules. In our alternative proteins area, protein solutions will continue to grow as we look at alternative proteins and looking at proteins with a different lens, not just from the basic protein sources, but unique protein sources moving forward to create that application science that we need. All this will be anchored with the chemistry, biology, and material science that both of our companies have done for over 100 years. How do we design our products with sustainability in mind, fitting with the regulatory constraints, but also make sure that safety is our number one priority. Intellectual property will be important to us as we follow the right IP moving forward, but also prepare for IP in the future. As we look at delivery systems, our market drivers are sustainability, sustainability, performance, and regulatory. This is important because you're only as good as you can deliver that active ingredient, the flavor, fragrance, or nutritional area. Our innovation focus will be on sustainable materials, clean label, robust delivery, and novel forms in many different applications, including home and personal care, flavors, pharmaceutical, animal nutrition, and health ingredients. Health and wellness market drivers are macro health and wellness trends, customized, personalized solutions, new delivery formats, demographics, and population growth. Our innovation focus will be a leader in probiotics, but also in claims validation and specific applications, including food, sports nutrition, infant formula, and also medical nutrition and pharma. We're going to also develop our strengths in microbiome science, clinical substantiation, and also delivery formats. In modulation, it's not only about lowering salt, fat, and sugar anymore. Some of the market drivers for better health and nutrition, natural and clean label, sustainability, and malware control. Our areas of focus will be in taste and scent, and also in packaging claims and areas that modulation can play a role in. As you can see, modulation can play a role in multiple different segments and multiple different applications coming across many, many different technologies. Our taste and ingredients will be paramount, especially when we learn what chefs are doing and what other areas are doing in authentic taste and profile creations. We want to focus on natural and clean label and sustainability. Our innovation focus will be on natural clean label, taste design, and areas such as vanilla and citrus. We have key strengths in sulfur chemistry, but also utilizing what nature gives us in our LMR capabilities, but also augmented fermentation capabilities. In our scent ingredients, we have one of the most robust pipelines in the industry. These robust ingredients in scent will be sustainable, renewable, and biodegradable. We also want to increase our trust and transparency with our customers and responsible sourcing, but also drive the customer loyalty in areas such as fine fragrance, laundry and home care, and beauty and personal care. The cosmetic area continues to be a high growth area for us, especially when we look at demographics in the aging population, sustainability, but also natural and clean label and health and well-being. We want to look at areas and we're investing in technologies and beauty within and also active cosmetics on the skin by driving areas in the probiotic knowledge, high throughput screening, and 100,000 over microorganisms in our culture collection. In our functional food ingredients, development of clean label functional food ingredients that are shelf stable that perform in the food products are paramount for us, especially in areas of sustainability, improved nutrition, and increased functionality in applications such as baked goods, beverages, dairy products, and alternative proteins. We believe we have one of the broadest portfolios in the industry, especially in total integrated solutions and also in co-creation capabilities. In our preservation area, we'll continue to be no artificial, but also clean label, and we want to increase that shelf life in your products as we move forward to reduce waste. We want to abide by a lot of the regulatory areas, but also make sure that we perform in nutrition and grain discovery in areas such as food and beverage, alternative proteins, and industrial markets. Our unique enzymes for multiple applications continue to be a strength of ours, especially in our market driver areas, sustainability, performance, animal health, and differentiation with our customers. We want to focus on novel innovation in the enzyme area, but also apply different application science of these enzymes in laundry and dish, food processing, animal health, and nutrition and grain processing. In our protein solutions area, some of the market drivers there are in health and sustainability, but also active lifestyles for our consumers. A lot of our innovation focus will be on new protein sources and new formats for functionality, especially in applications such as beverages, meat alternatives, bars, confection, and in the culinary area. We believe our strengths are scalability, but also reliability, source, and consistent quality. In summary, I'm excited to talk to you about the talent that drives and fuels our capabilities that then fuel our platforms to prepare for the future of IFF with our customers. We prioritize our portfolio to maximize our investment in high growth areas, and we continue to develop and expand in R&D capabilities and products for today, but also for the future. Expand the rate of impact of this innovation through our first-class pipeline will continue to be robust, but also continue to build sustainability in all that we do. I want to thank you today for your time and also thank you for understanding what we're doing in research and development and be set forth. There's more to come. Thank you very much. Hello. My name is Angela Strzelecki, and I'm the President of Pharma Solutions Division at IFF, a new division backed by a very strong and storied legacy in the industry as we serve, which I'm really looking forward to talking to you about. In Pharma Solutions, our core business is all about our offering of excipient solutions for both pharma and dietary supplement industries. First, let's talk about what is an excipient. An excipient loosely is just anything outside of the active pharmaceutical ingredient. It's really defined as the inactive specialty ingredients that enable the delivery of the drug or the active pharmaceutical and medical treatment therapies. We have in our business a combined 300 years of experience in cellulosic polymers for pharmaceutical applications. Our leading brands of Methocel and Avicel are truly pioneers in the market and continue to deliver critical functionality for our customers. Our products that are so important in prescription and over-the-counter medications are also highly relevant in the dietary supplement industry. Here, we also specialize in plant-based excipients, which are particularly crucial when we think about the dietary supplements and trends driving consumers in this market. Finally, we are also able to leverage our portfolio in broad and interesting industrial applications, which allows us to drive strong asset utilization and manage cash flow for the business. For our business, we engage in consumers in many ways. I'll talk about the immediate release segment as our first and probably our largest segment. This is an application space that consumers need treatment right away, and our excipients enable this need. Our polymers serve various functions. They function as binders to form tablets or hard capsules, but they also serve as disintegrants, which allow rapid dissolution and release of the active ingredient. You can think of immediate release applications when you have a nagging, pounding headache and you want relief super fast. Our products are what enable these formulations, and our disintegrant offerings in particular play a key role here. Sustained release is more often seen in treatments that need continual delivery of the API or active pharmaceutical ingredient. This technology arose, for example, from the needs of patients to be able to take one tablet over a 24-hour period versus having to remember to take many tablets per day. Our polymers are used to impact and tailor the time delivery profile for the release of the API, depending on what and where the treatment is needed. Novel delivery is also another space we participate in, and it's an interesting space. It takes us beyond tablets and capsules. Our portfolio is also used in pediatric and other liquid suspensions, giving properties that enable better suspension of the active ingredients and a better texture and make the introduction of medicines for young children, but also an older generation that may have difficulty swallowing it. It makes it easier and more pleasant. Finally, we have an offering that serves as an atypical API in anti-reflux medications, whereby here our seaweed-based excipients form barriers between the stomach and the stomach acid to prevent reflux. Finally, as we think about how our products interact with the consumer, last but not least, our polymer expertise allows us to create offerings for a wide variety of industrial applications. These applications range from electronics to batteries to coatings to personal care to agriculture. The sustainability of our materials, in addition to their functionality, impacts this broad range of consumer applications. Now let's talk a little bit about market dynamics. This flexible, broad, and diverse portfolio that we've integrated over the past several years really does allow us to tap into a wide market. I've listed two areas here. First is our core strategic market of excipients for oral solid dosage for pharmaceuticals. This is about a $4 billion market, and it's growing at a stable 3%. The second listed is applications of these excipients into dietary supplements, which have similar needs for our products and extends the market by about another $700 million, and in some categories are growing faster than prescription pharma. Not listed here are additional markets that are about $3 billion in size, and these are areas we're exploring for growth and innovation and include non-oral delivery forms and biologics or large molecule injectables. These markets are growing at higher rates in the area of 8-10%. To summarize, this is a stable market that has strong market growth drivers, and with the innovation and breadth of delivery forms in this market, there is ample room for us to grow. It's important to note that competitors in our space, like us, play across industrial, pharmaceutical, and dietary supplement industries as well. Also, similar to us with their product portfolios, they also serve food markets as well as pharma. This is an area where our division shares assets with the Nourish division within IFF, so we take an integrated approach to planning and the value we can provide across food and pharma applications with the breadth of our portfolio. Now let's talk a little bit about trends and drivers in the market. By far, one of the most significant trends driving growth in pharma is the trend toward more accessible and universal healthcare. It is driving growth for pharma on a global scale, and in turn, for our specialty ingredient excipients. As more and more people have access to affordable treatments and medications, the volumes of medications grow. Generic companies play a key role here. They have continued to expand in this space. We've seen about a 9% growth CAGR from 2016 to 2021, according to BCC Research. This especially is driven in emerging economies and the BRIC countries, especially China and India, but also a significant generic presence in developed economies as well. Given the regulated nature of this space and the importance of keeping shelf stock in pharmacies and hospitals, quality and reliability are paramount for any excipient provider. Trust needs to be built and maintained through science and data-driven programs, and it's here where we are highly invested. In addition, with the focus on cost of prescription medications, there is also a cost and use and manufacturability element that is crucial as well and part of the discussions we engage with with our customers. The second trend in the market is really the shift from treatment of disease to prevention of disease. Consumers are getting more and more proactive with their health, and we're seeing this particularly during this pandemic. Dietary supplements are projected to grow at 8%, with consumers trending toward more supplements, and they want different and easier to dissolve formats. Gummies, for example, aren't just for kids anymore. These are projected to grow at 12%, and we see those in a lot of adult formulations. The dietary supplement consumers tend to be very label conscious as well. They want plant-based diets to extend beyond their food, but to their vitamins and supplements as well, and this is evidenced from the growth away from animal-based gelatin. Last, as we look at demographics, we're all getting older with ailments that need specialized medicines. It's here where we're seeing an uptick in orphan indications or diseases that affect 200,000 consumers or less versus the big blockbuster drugs of the past, which means there are smaller treatments needed, but they are high-value treatments, and there are very rich pipelines for these numerous indications. The needs for these applications and consumers are different. They need specialized medicine, and therefore, many times, customized formulations and excipients. This is also where injectables play a big role and the formulations needed to deliver big molecules and specialized medicines. Now let's talk about our business. How does this translate to the Pharma Solutions business? We are a strong, stable business for IFF with opportunities for growth and investment. This business has been part of several heritage companies, but this is the first time it has found a home in a health-focused company. We can focus on pharma and leverage the health offerings of the other divisions to drive growth. The business has surpassed $800 million in sales and delivers strong EBITDA margins. You see, we have a very strong presence in the Americas and in Europe, but with continued expansion and strong growth in Asia-Pacific, including key countries for pharma like India. We serve thousands of customers direct across a variety of market segments and also have an excellent channel partner network as well. We are about 1,600 strong in terms of employees. This includes our operations network, the R&D engine for our business, our commercial organization, which includes a strong technical service team, and the rest of the supporting functions. Now let's drive a little bit into how we structure and segment our business. As customer intimacy across the end-use applications is really key to our business model, and here we can talk about a few of the segments we serve. For immediate and sustained release, we offer these technologies. They act as binders, coatings, disintegrants, release profile modulators. It covers a vast majority of functionalities required to develop oral solid dosage format pharmaceuticals. A key for us has been the combination of product and technical capabilities we have integrated over the past several years, and it builds off a strong backbone of our products, largely naturally derived from cellulosic and seaweed-based materials. In sustained release, we offer a broad series of offerings to provide the formulating tools needed to control the release profile and offer a more stable and effective pharmaceutical product. Dietary supplements is a smaller but growing part of our business, as is novel pharma, as we seek to expand our presence beyond tablets and capsules. Last, industrial is an interesting category for us, and we continue to seek new applications, and I'll talk about that in a little bit. Let's talk about immediate release a little further. One of our largest segments here is immediate release, and these applications continue to grow through the growth of existing medications as well as a strong pipeline of drug developments. We have product offerings in this category that have a long and trusted history in the industry, and our customers rely on us for high quality and high reliability. These close interactions with our customers are really key. Our teams are keenly focused on the emerging needs of our customers and their needs for continuous improvement in their manufacturing operations as well as their formulations. In addition, as our customers grow in this space with next-generation products, we're there to support with reliable technologies and applications expertise to help them with formulating challenges. Let's talk about our second segment, which is sustained release. There are about 75 billion tablets a year that are categorized as sustained release. They're popular because fewer doses are needed each day, which is very positive from a patient perspective, and it's also a way for the pharma companies to extend the life cycle of their drugs. Effective treatments for conditions like heart disease and diabetes are within the sustained release category, but also over-the-counter medications like once-per-day allergy formulations also use these technologies. This area is a key value creation driver for our portfolio. Examples here of APIs that utilize our three most prevalent control-release platforms include metformin, potassium chloride, and nifedipine. Although these are very long-standing medications, global growth for these still remains very strong drivers of our excipient demands today. Beyond the products, our value to our customers comes with our expertise. Understanding the design of these ingredients and how that design impacts the functionalities our customer needs is a key to how we collaborate. We're able to modify the polymer to enable the performance the customer needs. Now let's turn to dietary supplements. This is an area that has seen considerable growth, as we discussed, especially in the current COVID pandemic, where there is such a focus of consumers on immune health, and it really drives consumer use. Our pharma expertise and portfolio is very applicable in dietary supplements, but that's only part of our excitement in this space. As new formats increase in popularity and plant-based trends continue, we believe we are positioned very well to demonstrate strong growth in this segment. We're able to meet the stringent quality standards based on our pharma background, and our applications development ensures a perfect fit and collaboration with our customers. Furthermore, we continue to collaborate internally with our health division under Health & Biosciences, bringing together their expertise in active ingredients like probiotics and the formulating know-how that is in our team. Now let's talk a little bit about the novel pharma space. Here again, needs of pediatric and geriatric patients are drivers in this space. There is a need to differentiate with patient-friendly systems. For us, we are leaders in polymers for liquid delivery and are expanding in this space with the portfolio that we share with the Nourish team. In addition to liquid delivery, we are active in other areas such as orally disintegrating films. I also talked about our offering of the atypical API, use in anti-reflux. This centers on our seaweed expertise, and we further extend into the biomedical field with high-purity alginates, which is ripe with opportunity. It is in this novel pharma area where we see synergistic opportunities with other divisions within IFF. Last but not least, let's talk about industrial. We're able to optimize the functionality of our product lines in a large variety of end uses, serving customers in many wide-ranging profitable growth industries, including home and personal care, batteries, electronics, and more. Our cellulosics act as gelling agents and viscosity modifiers, and we're able to displace not-in-kind competition given the versatility of our polymers and our expertise. We have developed a separate applications and sales team that is highly knowledgeable of these end-use products and applications, and we actively prioritize key growth segments in this space. A big opportunity in this space is the call for greener technologies. Through our plant-based offerings, our team is able to deliver on a strong pipeline of projects. Also, very important is our asset footprint in manufacturing. I've talked a lot about the polymer expertise on the technical side, and I've also discussed the need for quality and reliability. Just as critical for us as technical excellence is investing in a strong manufacturing network. Methocel and Avicel are two of our strongest product lines, and the plants highlighted here, Midland in Michigan and Cork, Ireland, are two of our key assets for these products. We're spread throughout the globe, and we share assets with the functional ingredients portion of the Nourish division. This is a clear synergy as we work with Nourish to invest in our asset footprint for growth in both of our divisions. Let's talk a little bit about our competitive strengths. Our competitive strengths really boil down to the broad portfolio we've pulled together, our expertise, and our passionate pursuit to resolve customers' problems. Our EBITDA margins are about 26%, as we also maintain a focus on reliability and asset productivity. Our key is to be a relevant partner to our customers. We maintain a focus on applications expertise that we can leverage with our strong access to top pharma and dietary supplement customers around the globe. This chart here talks about our strategic intent. I have to say the first three areas are really not new to this business in that this has been our strategic intent since we brought these companies together. We really are focused on driving growth with our core markets. We do this through driving commercial excellence. We do this through leveraging our technology innovation both in our existing markets and to penetrate new markets. From an innovation perspective, we maintain an industry-leading set of innovation projects to continue to further refine and develop the offering we have in the oral solid dosage area. We develop excipients ingredients as well and are actively pursuing growth in adjacent segments. We do keep a very keen eye on margin. We continue to drive cost-saving and productivity programs across our business and operations. We actively manage our portfolio across our strategic segments. Our productivity programs that we drive really do enable cost savings, but also enable liberation of capacity, which is so important to support the growth in this market. I would say since coming to IFF, the fourth one is where we're really excited. It's really about how we can leverage the integration opportunities that have us. We are looking to drive cross-selling opportunities across the four divisions as well as develop integrated solutions that can help us differentiate versus the competition. I would like to talk to you about the opportunities for growth to ensure we deliver the market-leading growth expected. First and foremost, we will continue to focus on our core pharma customers, driving product extension, quality and reliability programs, and commercial excellence to capture the growth in the industry. From there, as we look at dietary supplements in the novel pharma spaces I've spoken about, we will continue to actively seek growth, capturing the plant-based trend and targeting identified attractive adjacencies with an expanded portfolio. We also will look to leverage the new capabilities and the full breadth of the IFF portfolio to expand our presence and are able to be even more relevant in areas like taste masking and taste modulation as we look to work together with our IFF colleagues. Finally, we are continuing to explore opportunities to take advantage of the growth in biotech. We are actively engaged in future innovation, leveraging our capabilities and our market access. Strengthening innovation is a key part of our role within IFF. We are very health-focused, and the IFF company creates an environment that enables innovation our segment expects. This slide shows a variety of different ways of how we can flex our innovation muscle from our core, supporting the needs of our customers across oral solid dosage, supporting the expansion and extension of technologies to the novel growth applications you see here. We are currently active in all of these areas and build a robust portfolio of innovation projects for the future. We continue to analyze our portfolio, and as we look across the spaces, whether it's our pharma and immediate release and sustained release positions, we look to maintain those positions, grow with those positions, and the customers in these areas. We will also continue our growth objectives within the dietary supplements to take advantage of those market conditions and look to expand in the novel pharma spaces. We will also continue to assess and focus on the attractive areas in the industrial space, which create a lot of new and interesting opportunities for us. Before I close, I would like to talk a little bit about synergies amongst the division. I have to say I am very encouraged already, only a few weeks into the integration, at the opportunities we are finding to work across divisions. As part of Nutrition & Biosciences, we had already launched a number of collaborations in the health space with our probiotics team, but the new expanded health offering in H&B creates additional opportunities. As we look to the IFF divisions, we are actively engaging with both organizations. On the nourish and taste side, applications for taste and pharma are clearly an area for potential revenue synergies, both from a cross-selling and an integration formulation perspective. Additionally, the presence we have in home and personal care space can benefit greatly from the customer intimacy and applications knowledge found in the scent division. In summary, I'm hoping this provided you with a glimpse into our division. I'm exceptionally proud of our team, our focus on our customers, and what we can bring to IFF. We are leaders in our technologies and will continue to innovate and invest to grow with our customers. Top-line growth will be driven by our core markets, expansion into attractive segments, capitalizing on the synergies across IFF, and actively managing investment across the portfolio, aligned to realizable opportunities in the markets we serve. I hope in these last few minutes I've been able to share with you what we're all about, share with you some of the excitement we have within this space, what we think looks like a great opportunity for this business to continue to thrive and grow within IFF. Thank you very much. Hello. My name is Simon Herriott, and I am President of IFF's Health and Biosciences Division. Thank you for joining this Learning Lab presentation. Health and Biosciences was formed by the combination of the biotechnology businesses of DuPont back in 2019, and we brought together our world-leading probiotics, cultures, and enzymes business, plus the then-DAO microbial control business. On its merger with IFF, we've also added IFF's health ingredients business to make an exciting combination in the health space. I'll talk more about that later. There are three themes that I will come back to throughout this presentation. First, that health and biosciences is an exciting high-growth, high-margin business sustained by a phenomenal innovation pipeline. Second, that we are a leader in biotechnology and that biotechnology not only serves health and biosciences needs, but in the future will serve the wider IFF. Thirdly, our product solutions are completely aligned with the macro trends that are affecting our customers and their consumers. Why do we anticipate strong growth? Really, five macro trends that you can see on this slide. These trends have been amplified by the pandemic, but in truth, they preceded the pandemic, and we believe they are likely to remain with us for the future. I particularly select health and wellness, the need for protection, preventative health, as being a trend which is going to support health and biosciences businesses. In healthy food, we have increasingly ingredient and nutrition-conscious consumers. In cleaning and hygiene, we have an additional emphasis on protecting our homes and workplaces, something that we and our customers believe will continue long into the future. In sustainability, there is a greater awareness than ever that our actions today should not have consequences for the generations of tomorrow. Health and biosciences is ideally positioned to take advantage of all of these trends. Let me start with our customers and their consumers. We organize health and biosciences into six market-based business segments to maximize our intimacy with those customers and their applications. Their needs reflect the macro trends that I just described. For example, in health, we have offerings to address digestive, immune, cognitive, metabolic, and women's health. We have the best characterized strains backed by validated clinical studies. In cultures and food enzymes, for fermented foods, both in vegetarian alternatives and also in traditional dairy products, we offer sugar reduction and reduction of food waste. In home care, we align performance with sustainability. In animal nutrition, our producers are looking for feed efficiency, but also for improved animal health and welfare and a reduced environmental footprint. Our products support that too. In grain processing, we're strong supporters of biofuels as an effective, renewably sourced transportation fuel. Though transportation fuel use has been much reduced over the course of the pandemic, we anticipate that this will come back strongly. Finally, in microbial control, environmental and regulatory pressure on older actives is leading to opportunities in several segments for health and biosciences microbial control business. All of these businesses are founded on health and biosciences leadership in biotechnology. Our journey to meet our customers' innovation needs begins with discovery. Inspired by nature and enabled by cutting-edge biotechnology, we are able to identify, test, and scale up our enzymes, probiotics, and cultures to develop new products. In enzymes, for example, we engineer, screen, and test thousands of variations to identify the very best performers in our customers' applications before then marrying the enzymes with their production hosts to be scaled up, produced, and sold to our customers. In probiotics, our ever-expanding library of strains allows us to assay for those that are most beneficial to test and then to trial them in clinical settings. Health and biosciences is truly world-class in discovery, in those screening processes that I described, in enzyme protein engineering and the development of associated intellectual property, in clinical trial design and delivery for dietary supplements, and in manufacturing and scale-up of complex microorganisms. We broadly serve mega markets in food, health, consumer, energy, and industrials. Even if we narrow the definition, we deliver to a total addressable market that we estimated around $17 billion. These markets have differing growth dynamics, with slower growth overall in industrials and energy and much higher growth in health and consumer. Overall, we believe our base markets will grow at a sustained 3%-4% over the next five years. We, in turn, are particularly well-positioned to grow strongly within these segments based on the substitution of existing or older technologies and the macro trends that we described earlier. If I take a broad snapshot of Health & Biosciences division as a division, we're a $2.4 billion organization by sales, developing 28.9%, nearly 29% of EBITDA, and we serve over 7,000 customers through our 3,500 dedicated employees and associates around the world. Our business units are fairly evenly spread. The smallest at around 10% of our portfolio, the largest at 30% of the portfolio. Our health segment was formed by the combination of DuPont Nutrition & Biosciences and IFF's legacy health businesses and is now positioned as our largest business in one of the fastest-growing segments and in which we have world-leading position. Fully 75% of our product sales are sourced from our biotechnology capabilities and assets, together with a smaller portfolio of specialty natural products and synthetic chemistries, the latter being largely used in microbial control. We are strong in well-established markets in North America and Europe, and we have significant growth opportunity in emerging markets of Asia and Latin America. Our leadership and sustained investment in our technology and in our applications knowledge is reflected in the quality and the profitability of the portfolio. Each of our businesses is led by knowledgeable segment leaders with dedicated sales, marketing, and application-based teams that each draw from a flexible and shared asset base of manufacturing and R&D capabilities, but are accountable for the investments that are made in each segment and the outcomes that are made for each market unit. Our enzymes, for example, are used across four different categories. Live biologicals, such as probiotics and cultures, are also used across four different categories, and there remain opportunities for these biotechnologies even in the segments in which they're not currently used and indeed in markets outside the current portfolio. Further segmentation within each business facilitates deep applications understanding and the effective delivery of new products for our customers within these applications. While working in shared regional facilities, cross-fertilization of ideas and insights is encouraged and optimized. If we dive into each business in turn for a little more detail, let me start with IFF Health. We're extraordinarily excited to bring together the combination of DuPont's probiotics, fibers, and H&O business with IFF Health Ingredients business in botanicals, vitamins, minerals, and lipids. We have a world-leading position in probiotics, in strain characterization, and clinical trial support. Our combined capability in manufacturing, scale-up, formulation, and the supply of concentrates, hopper-ready blends, and turnkey finished formats for our brand and private label customers, we know distinguishes and differentiates ourselves from even the very best of our competitors. We organize the business around four sub-segments. Dietary supplements is our largest, and it's our traditionally digested health, but increasingly in immune health and increasing opportunities in new indications such as cognitive, metabolic, and women's health. HOWARU is our leading ingredient brand, which stands for well-characterized and clinically validated strains. The inclusion of health supplements in food and beverage formats is increasing all the time. Here we leverage the applications knowledge of our world-leading food ingredients business in IFF Nourish to ensure that we are able to stabilize health opportunities within food combinations and food formats. Infant, pediatric, and medical foods are examples of specialized nutrition for vulnerable populations. In consumer healthcare, companies are increasingly looking to the next generation of probiotics sourced from our world-leading work in the microbiome to develop new therapies. In our cultures and food enzymes business, we have two segments, both of which support active ingredients that go into natural and healthy foods. In cultures, fermented foods and beverage, both in traditional fresh dairy and cheese, and also emerging fermented beverages and plant-based dairy alternatives. Our food enzymes are designed to reduce lactose, reduce sugar, extend shelf life, and improve the taste and texture of the product itself. We are most excited by the launch, for example, of Nurica, an all-in-one dairy enzyme that not only reduces sugar but simultaneously increases fiber in the finished product. Here in this business, we collaborate with IFF Nourish on our route to market, bringing the strength of the whole organization to our customers in food ingredients. In household and personal care, performance is the byword. Enzyme performance in stain removal has been at the heart of substantial improvements in laundry and auto dishwashing products over the last several years, and Health and Biosciences has contributed substantially to that development. Sustainability is high on our customers' agenda, driving further innovation to deliver outstanding performance in stain removal at colder temperatures and shorter wash cycles. In personal care, Health & Biosciences is a niche supplier of natural osmolites and humectants for skin moisture and increasingly leverages our microbiome capabilities for skin and hair care. Our animal nutrition business serves farmers, meat producers, and feed mixers with specialized ingredients to improve the nutrition and health of livestock animals, reduce feed costs, and reduce waste. In developed markets, increasing pressure on meat producers to eliminate antibiotics, improve animal welfare, and reduce their environmental footprint has spurred innovation in animal nutrition and health. In emerging markets, as income has increased, so demand for meat protein has grown, and the production sector has increasingly organized and improved, sustaining demand for improved feed solutions from suppliers like ourselves. I spoke earlier about the biofuel sector, and despite much reduced travel and consumption of transportation fuels during the last year, we anticipate, despite weaker policy support, that biofuels will have a major role to play in reducing fossil carbon emissions from cars and trucks. Here, Health & Biosciences is equally well-positioned, a leading supplier of enzymes and high-yield fermentation yeasts. Our innovation will continue to support improvements in production in the biofuel and carbohydrate processing sectors. Finally, our business in microbial control serves industrial and consumer sectors with preservatives and surface treatments. I mentioned earlier the changes in the regulatory environment in microbial control products. Here, health and biosciences is very well-positioned to meet demand in consumer markets for hygiene and odor control, characterized by our leading product offering in textile treatment called Silvadur, and also to take advantage of regulatory restrictions on competitive actives in marine coatings, in wood treatment, and in animal biosecurity. I mentioned before that the segments that we described earlier are supported by a common asset base and a common R&D portfolio. Here we have a network of flexible manufacturing facilities that allows us to optimize scale but scale up to locate close to customers and to improve our responsiveness to our customers, to give us some supply chain resilience, offers us raw material utilities and currency arbitrage, and is characterized by some world-leading assets. I would highlight, for example, our finished format facility in Beijing in China that helps serve the Chinese probiotic dietary supplement market. Our leading probiotics facility is in Madison, Wisconsin, and Rochester in the U.S., and then our global enzymes powerhouse of assets in Cedar Rapids in Iowa in the U.S. and Hanko in Finland. Our research and development and applications labs are located close to customers, but also in strong skill-based hubs for biotechnology. We have R&D facilities in Palo Alto in California, in Leiden in the Netherlands, for example, in Wilmington on the east coast of the U.S., and in Shanghai. In summary, our competitive strengths come from our best-in-class biotechnology capabilities. We have world-class science and a world-class asset base, leading products and technology, intimate applications expertise in the segments that we serve, and we're well-placed to benefit from macro trends in consumer and customer needs. As we look forward, our strategic intent revolves around four different categories. First of all, we look at growth. Here we're looking at innovation to lead our support of and response to the macro trends that I described earlier, and also the opportunity for growth in emerging markets where we're relatively less well-represented. In innovation, we are driving innovation that improves our lives through enhancing what we eat, what we use to stay healthy, and the products that we use in our homes. Margin is critical, and it is driven here by innovation-led superior product performance and enhanced value creation for our customers, by which we are rewarded in all our segments with strong margins. Finally, as we bring IFF together, there are exciting opportunities in integrating with other IFF divisions. Health and biosciences markets and customers in health, food, and consumer all offer cross-selling opportunities with IFF's Nourish division, IFF's Scent division, while H&B Technology is an enabler of new solutions across the portfolio. In growth, we are focused on expanding market for our key portfolios for consumer macro trends and emerging markets. In health, probiotics for digestive and immune health, but also new health indications. Healthy foods, we're looking at products that provide clean label, sugar reduction, gluten-free, fiber enhancement, that are plant-based, and looking at fiber-producing lactases. In sustainability, we can impact our customers' process footprint and their product footprint by providing solutions that reduce food waste, improve shelf life, reduce water and energy usage. Finally, in cleaning and hygiene markets, trends are expected to continue post-pandemic, and we'll continue to innovate in our business to deliver value through high-performance and highly sustainable options. Where might our biotech innovation take us in the future? Microbiome innovations are core to our businesses in health and increasingly in cleaning and hygiene and also in food. Innovations to serve all of our key markets and indeed new markets such as crop health will come from our microbiome leadership. Our extensive applications knowledge in food and broad ingredients positions us to lead in healthy food innovation. We believe that the next frontier in consumer products is to reduce the non-biodegradable and petro-based polymer ingredients. Here, our leading platform in sustainable biopolymers will play a significant role in these markets in the future. Finally, we're positioning ourselves to be leaders in the use of data in biotech research, extensive strain libraries, and data related to our customers' processes. When we look at our portfolio in health and biosciences, we have overall a very strong portfolio in which even the least profitable segment offers leading market returns amongst its peers. It's a portfolio that serves different market segments, but does so from a core leveraged and interdependent asset and technology base. These are businesses in which we plan to and continue to invest into the future to continue growth and margin expansion. The merger of IFF has created many opportunities to combine our technology products and markets and bring new solutions to our customers. In our health business, we will cross-sell our existing products to customers while we create new products and solutions with combinations of probiotics and natural extracts. The combination of health and biosciences home and personal care business with the scent team's consumer fragrance business provides significant opportunities for cross-selling our solutions. Perhaps the most exciting part of this new relationship is the use of biotechnology innovations in the future for the same business. Leveraging the Nourish sales team to sell our enzymes and cultures, we also anticipate will bring significant numbers of new customers to our business. Finally, using bioscience to enable technology improvements for our sister divisions, Scent and Nourish, will allow for improved sustainability and the ability to replace chemistry in scent and food and beverage applications. As we close our session, I'll return to those three key themes. The health and biosciences business is a high-growth and high-margin business with both a history and a future of significant growth potential. Our robust product pipeline will provide sustained growth. Second, we're a leader in innovative biotechnology-based solutions that not only serve the health and bioscience markets, but will also facilitate growth across the whole of IFF. Third, our products and solutions are consistently on macro trend, meeting customer and consumer needs and offering differentiated technology-based solutions for consumer and industrial markets. Thank you for listening. Welcome to the IFF Learning Labs. My name is Nicolas Mirzayantz, and I am the President of our Scent division since 2007. Today, I am honored to take you through several aspects of this very exciting business and provide you additional information regarding IFF's Scent approach to remain a key industry leader within the segments we participate in. IFF's Scent division has four business units with dedicated leadership and strategy, each of which has a unique value within the division. First, the Consumer Fragrance business unit creates and sells fragrance compounds for three main consumer product categories: fabric care, home care, and body care, which encompasses personal wash, hair care, toiletries, and skincare products. We have our fine fragrance business unit, which develops and commercializes fragrance compounds for perfumes and colognes from mass market to high-end and iconic fashion brands like the so-called fine perfumery industry. We have our cosmetic active ingredients with active and functional ingredients, botanicals, and delivery systems creating to be part of our customers' cosmetic and personal care product lines. Finally, our fragrance ingredient business unit consists of synthetic and natural aroma ingredients. They are the components of a fragrance compound and play an important role within our strategy. IFF Scent is well-positioned to win in the marketplace today and tomorrow, and our diverse portfolio delivers wide geographic coverage, differentiated capabilities, and well-trained passionate talent. Consumer and customer-driven innovation pipeline currently is the strongest ever in IFF's history and the strongest ever in our industry. Also, we have delivered demonstrated solid growth with robust margin profile and profit contribution, and last but not least, a proven product superiority from a technical, creative performance and preference perspective. At Scent, we're human and consumer obsessed, partnering with winning companies giving life to the most iconic brands globally. Scent is a very attractive market of $15 billion across the different markets in which we participate in. It is very resilient and with a solid growth perspective since it expands proportionally with population growth and increased urbanization. Here, other macro trends are shaping the industry beyond the demographic shift. First of all, post-pandemic reality elevating personal and ambient safeness and cleanliness standards. Number two, augmented naturality through biosciences creating a future with safer and regenerative alternatives. Three, health and well-being being amplified, increasing pro-care routines. Four, sustainability principles becoming the new normal to consumers and our customers. Five, trust and transparency expectations regarding products and services. Last, digitalization accelerating all aspects of the business. Our fragrance compound competitive landscape. Our market is highly concentrated. As you can see, the top four players represent more than 70% of the fragrance market compound as a result of several consolidations that were accelerated over the past 20 years. It is very important to underscore that IFF has delivered the best organic growth like-for-like over the past three years, while new competitors improve their position through a more aggressive M&A strategy focused on the scent market. We were able to grow market share ahead of the competition with significant improvement within the customers where we have just entered a new core list, delivering a very meaningful high win rate. I am very pleased about the progress we are making. Recently, the team shared with me that by far in 2020, during the pandemic, we have outgrown the market and grew significantly more market share than any other fragrance competitors. IFF is a global pioneer of a unique industry. We are in the business of emotions and memories, creating unique experiences for a variety of consumer product goods for over 132 years. It is a healthy business portfolio with consumer fragrances representing over 50% of our revenues. Fine fragrance in 2020 was impacted, as you can imagine, by the overall pandemic crisis through many of the retail outlet closures and is expected to fast recover to its historic above 20% share in 2022. Despite our strong roots in the U.S.A., 77% of our revenue generation is captured outside North America, with a very strong foothold in Latin America and Greater Asia, and the largest revenues coming from the EME regions. Important to note that emerging market represents 54% of the total sales for our fragrance compound business in 2020. This is due to the vision of the former leaders of this organization, where more than 100 years ago entered Indonesia with also a participation in India, more than 100 years of presence. More important for you to know that we have been in China for 70 years. We have been in Brazil for 70 years. Before BRICS were even coined as a word, we were already the leading players in this market. Our business is positively indexed towards multinationals because of the concentration of the market, but also with a very long-standing relation with regional and local companies. This is coming from our long-standing presence in the developing markets. We have a very, very strong strategic relationship. We have delivered a solid performance over the past five years. Based on our business intelligence, as I shared with you before, we believe that Scent division of IFF has grown faster than the market. While this is a global business, having a local presence, having a local understanding is absolutely fundamental to be knowledgeable, insightful, and responsive to opportunities. Our multiple creative centers, business development teams, and manufacturing footprint are strategically located to provide agile services, support, and guarantee supply safety to all our customers. On this slide, we are highlighting the Scent major strengths recognized not by us, by the market, and most importantly, by our customers. Let me share some of them with you. We have delivered superior performance across categories and geographies. For example, we are the leaders in fine fragrance. We are number one in fabric softeners and number one in LATAM and number two in Asia. We have secured the broad market access at the global and the local levels, where we have been actively present in countries like India, Indonesia for 100 years, Brazil, and China for 70 years with very, very targeted customers, most iconic brands in the market, providing a deep market and consumer understanding and market trends that is extremely strategic to our customers. We believe strongly in product superiority. This is even more important today when it comes to natural ingredients. IFF made a very bold step 20 years ago when the industry was actually shifting away from naturals. We understood that naturals were going to be a major trend for the future. We went and acquired the leading company in natural called Laboratoire Monique Remy, who is very high-quality craftsman's processing, deep knowledge, and through that dedicated acquisition of LMR, we have become the industry benchmark now for many years. Also, IFF has developed in-house a leading capability expertise around human and consumer insight. This is valued and respected by our customers and a key driver for differentiation and for creating better superior products whilst unveiling innovation opportunities based on very, very deep consumer unmet needs. This is critical today for the industry. Finally, I cannot stress enough our unique talent pool driven by passion, creativity, empowerment, and expertise, the thousands of individuals who are making a difference every single day for the brand that we work with. We will get back to explain why talent and specialized talent, in particular for our industry, is so critical further down in my presentation. I was sharing with you that we have four different business units that diligently build and execute their respective strategy by focusing on a very, very clear and tight portfolio management by sub-classification, customer type, and geography. We know where the growth opportunities are. It is very simple. From a commercialization perspective, we see both a pull and a push model applied depending on the industry or categories that we serve. Our fragrance compound business is mostly a pull model with a brief from our customers. As far as ingredients and cosmetic actives, this is primarily a push model where we bring our solution to our customers. For fragrance compound, as you can see, the commercial cycles can vary from 6-18 months, normally set by our partners. For fragrance ingredients and cosmetic actives, normally they follow a longer development cycle between 1-5 years. You can see two different dynamics. Also, the level of customization required is another variable centering business models apart. Fragrance compounds work through customization. Every brief is expected to receive fragrance solution being optimized to address specific product parameters like the brand needs at the local market relevance. On the contrary, ingredients and cosmetic actives work based on a catalog, strategic catalog of materials that are introduced to the target market and customers as a ready-to-use material. Finally, micro trends are actively present, shaping our product development, the product preference from the consumers, and setting the innovation agenda for IFF. In a few slides, I will be highlighting the transformative nature that the sustainability trends are shaping in our industry as we become increasingly more human and consumer-centric and obviously respecting nature. Now talking about human consumer-centricity, we know that consumers just do not buy products. They are buying experiences. It is a fundamental component of what we do. Let me highlight that the world of scent experiences is one of the few businesses with such a closeness, proximity, and influence on consumers over a 24-hour-a-day period. We leverage this by learning and improving and listening to the product that they touch through their lives, through all the different touch points of their day throughout the entire day. I would like to say that we are with every single one of you 24 hours of your day, with that, you knowing that we're playing a role in increasing, enhancing, and augmenting your experiences. We deploy human and consumer insight programs, offering our customers deep understanding of the underlying drivers of liking, and I would say even drivers of loving product, and also purchase decision while exploring each of these moments of consumption, each of these moments of use. Likewise, we collect, we analyze, and we deliver to our customers timely macro trends based on global, regional, and local firsthand perspective and insights. Throughout the year, we conduct and analyze valuable data collected through hundreds of thousands of interactions that are translated into meaningful insights, driving product superiority, unique global market perspective, and inspiring new growth ideas deriving from cross-category understanding. You can think of a trickle-down effect from categories, trickle-up effect as well from our cross-category understanding. Here, I want to mention that we have conducted extensive research to understand the way the landscape was moving during the pandemic last year. We had millions of data touchpoints that we can share to demonstrate and share with our clients where the market is going, what is changing, what is not changing, and therefore, where are the growth opportunities that we can provide to our partners. This massive data collection, this massive insight is augmented through our unique IFF in-house artificial intelligence capabilities towards improving development cycle, stronger accuracy, far more effective, and to-the-point targeted creations, and finally, delivering winning creation. I just want to highlight that we've been really leveraging and working with artificial intelligence for the past 15 years. We knew that this would be augmenting our creative ability to strengthen our time to market and to have also a far more predictive model of what success and winning fragrance would look like. I am very happy about the result, the breakthrough that we brought to IFF and to our partners. Here is why fragrances are positioned at the top of the specialty ingredient pyramids. As you can clearly see on this slide, it disproportionately represents a very small portion of the total product cost. It varies across categories, but probably less than 5%. If you compare to the impact on overall product perception, overall product preference, 70% of the product preference and 70% of the repeat purchase and initial purchase will be driven by the scent experience. It is a massive impact. This is true from fine fragrance, which is a main attribute, the scent being the main attribute of the product, to other consumer goods categories. The scent is not important for liking. It's important for liking. Most importantly, to drive repeat success and long-term success for our partners, it's about driving repeat purchase. Scent continues to be the number one attribute driving purchase intent. Even more importantly, the purchase repeat factor, as I just told you. It is a showstopper when consumers do not like the scent. Even if you love the advertising, even if you like the brand and you want to buy this product, as you know very well, if you do not like the smell, the likelihood for you to go back and repeat again that purchase for that specific product is very, very, very, very low. Here, it is about driving loyalty. This is so important today, both in today's social media and e-commerce media. This slide is about market access, which has been our obsession for the past few years. We knew that in the past, we were under-indexed. We have been able to unlock now incremental growth opportunity. What I wanted to share with you is that the commercialization process is very much dependent on securing customer access at all levels. Customers define who they invite to participate in their business, in their development. In other words, we must qualify. We must be fit to compete and to be selected and to meet the criteria of expectation of our partners in order to unlock new opportunities. For us, new opportunities are called briefs, the briefs that are shared with us by our customers. Once the doors are open, we have a very, very strong confidence that we can win. We just need to have access. When I look at our win rate, it is actually very strong and increasing. If you think, access and win rate are probably the best predictor of future success. Once the doors are opened by the customers and you're invited to partner with them and to work on their brands, the work continues by applying best capabilities, very targeted, and the expertise where they need that will be leading in creating that product superiority that I was sharing with you before. The creative development follows an interactive process between the internal development team of IFF and the team of our customers. Our creation for a specific brief, a specific brand, a specific market are then evaluated and screened by our customers according to the brief requirement that they give us. All proposals are qualified through a series of technical, consumer, and commercial validation. The final selection is decided by the customers after the evaluation of their product and/or scent after it has been completed and deemed to meet their criteria after very, very in-depth consumer screening. Furthermore, it is important to highlight that multinational large customers operate with a short list of core suppliers, core fragrance suppliers, which are formally selected to work as a preferred partner for a duration from three to four years. Think about the Olympics. You have to qualify to compete. Unlike the Olympics, where one must compete to qualify and participate and just participate and compete for a few minutes, few hours, here, the fragrance houses must continue to deliver on the brief and to compete for the duration of the contract. It is very intense. Once you're in, it's full engagement. You cannot just compete halfway. There are strict also KPIs that are being deployed by our partners to make sure that you're performing on the most important components to their expectations. Adhering and delivering to a very strict pre-agreed key performance indicators, the KPI, is absolutely critical. Being part of the so-called core list is a testimony of IFF's strengths and our ability to compete in a very, very fierce landscape. Proudly, IFF's performance is second to none. We're not afraid to compete. Actually, we want to compete. Here, if we look at the operating model, it can be understood as a consumer-centric closed loop. It starts by having a keen perspective of consumers' aspiration, expectation, and taste. Then our dedication to an in-depth research, analytical, and innate knowledge of consumers are part of our business development and creative process. This is matched by our superior capabilities and technology. Earlier on, I was referring to AI. This is the way we are creating these winning products. Think about this also as a virtual cycle where you keep building knowledge that you can be deploying across your portfolio and across the different categories in which you compete. After careful selection, products reach the retail market through our customer channels to finally face the most important moment, which we call the moment of truth, competing for the end consumer preference in the marketplace. As you know, today, the marketplace is very crowded. That is why differentiation and making sure that the brand that we partner with are standing out in the shelf and also that our scent is helping the brands to drive repeat purchase. Today, it is a new reality. It is a new augmented IFF. It is important to highlight that post the merge with DuPont Nutrition & Biosciences, the new IFF will have the largest investment in R&D within our industry. Because of its relevance, allow me to explain how R&D is positioned within our industry and at IFF. Research is fundamental for growth. Research is fundamental for innovation. Research is a centralized function with a long-term development horizon for differentiation. Here, new technology, new analytical capabilities, and engagement with outside partners happen with the objective of creating long-term relevance, differentiation, and material competitive advantage. The development of our fragrance creation side is decentralized and operates across multiple creative centers, which are based all over the world, deployed according to the big markets, to the proximity with our large partners, but also based on brief requirement, complexity, and proximity to the key markets. This model allows us the advantage to create and test under real conditions and also in alignment, of course, with the regulatory landscape. This map shows you the breadth of our creative presence and relevance across all our key markets. IFF is a global powerhouse with a local understanding, expertise, insight, and proficiency with the advantage to be nimble and agile. As you know, the market is very fast and agile today. You need to be able to deploy these insights very fast for our customers. Now, having access to a great palette of ingredients and technology is important. The creative process is done by hands, by human beings, and we can say by their noses of highly skilled and specialized talent pool. I cannot stress this point enough. IFF masters the art of creation by nurturing creation and innovation striving for the ultimate craft. Due to the critical and strategic nature, IFF has created and established for a very long period of time an internal school to identify, to train, and to source from within, securing a specialized talent pipeline to work around the world. The concept of scent designers, which is very unique to our business, the team that are helping and guiding our creators to create, was actually an expertise that was pioneered and introduced by IFF in the 1970s because we felt already the need to bring the voice of the consumer inside the company. This was before consumer insight. We brought consumers inside our company to be a sounding board to the creative team and to see if it was market relevant. This has become now the norm in our industry. There is a saying that there are fewer trained perfumers in the world than astronauts or Nobel Prize. I still have not found yet a talent pool so restrictive. We need to make sure that we have the best talent, that they have the best training program, and they are deployed in the most effective way. Our perfumers in a team with the scent designers and the scent technologists create the most relevant, suitable, winning candidates for the thousands of briefs that are developed every year across IFF creative centers around the world. They are guided by a team of consumer research experts who have firsthand knowledge and feedback from the consumers. IFF scent division has been executing on a consistent strategy that resulted in superior performance over the past five years. Back in our Vision 2021 strategy, we built upon our core strengths that I've shared with you and had increased focus on margin, recovery, and expansion. I want to highlight that we did double down on the following pillars. First of all, unlocking growth. It was critical for us to win and to secure incremental market access to accelerate our growth. Number two, it was all about driving innovation that leads to product superiority and differentiation. Portfolio management with a very strict and focused allocation of resources based on growth, profitability, and return. We deployed a business transformation mindset by identifying and acting on key profitability levers which were so important to us. As we get ready for a new cycle, now part of a new augmented companies, we are more confident than ever to compete given our broader customer access, our very strong win rate, and the best innovation pipeline in the scent division history and also the best innovation pipeline in our industry. As I shared with you, market access is the single most important aspect for our industry in order to deliver in the future profitable growth going forward. Without this access, not only are your growth opportunities limited, but it also will have some profound impact on our profitability as well as our ability to invest in the critical part of our business. It will have also a negative impact on our ability to retain talent. With the addition of four new key core lists, just to give you a perspective, our market access has increased in the past two years by over $450 million. I repeat, $450 million, which is equivalent to 5% of the total market potential. I am very, very happy to report that with a very short time in this new core list, we have been able to win, to have a very strong win rate, and to already grow double digits. That will represent an incremental growth driver to our performance. This new core list enables fast growth, as I was telling you, double digits, on new partners where IFF market share is far below our fair market share, thus providing significant dry powder or growth potential. I was telling you that the win rate with these newly gained partners is disproportionate. We are winning. We are winning fast. The feedback that we're getting in terms of innovation is extremely positive. I'm very confident about our future and the acceleration in our growth. Our strategy is very simple. It's to win with the winners because they are constantly increasing market penetration. They can best leverage our global reach. They can best leverage also our innovation pipeline. Global reach, regarded as category leaders, thus enables us to innovate first. In the long run, it's creating a very, very strong position in regards to acquiring fast-growing local brands. Winning with winners, both at the multinational level as well as the regional and the local, is critical. They know where the market is going, and we're helping them to grow organically, and we're also helping them to grow permanently. In addition, let me highlight that scent growth and share is also strong among regional and local customers with whom IFF has long-standing relationship partnerships due to its local pioneering presence in key developing markets across such as the Indian continent, 400 years, Indonesia that I was referring before, but most importantly, also Latin America and Greater Asia main countries. Very few companies were in China in the early 1950s, and IFF was there. Actually, I spoke to the people who had developed the company. I was fortunate enough to meet the people who really pioneered the business of IFF in China and Brazil in the 1950s. On this slide, we share IFF scent key R&D platforms with respect to innovation. We have seven key platforms being activated by 25 different programs. On the left, you have the key core platforms. The number one is being ingredients. Delivering a strong pipeline of unique, valuable materials is absolutely fundamental. They are the pillars, right? Without ingredients, you cannot create a fragrance. We have 17 new synthetic molecules in the pipeline. We have 41 new natural ingredients launched last year. This is the strongest innovation pipeline of IFF in the industry. Delivery system, which was the most breakthrough innovation in our industry for the past 80 years. I want to remind everyone that IFF was a pioneer in really launching the delivery system first in the year 2000. We were first to market. We were the pioneer. We are the leader in that category. Now there is a new opportunity that has come to be the first one to market again with a new sustainable delivery system that has been required within the European landscape. This is a big priority for us and will create also great growth opportunities. Naturals. I spoke to you earlier about the importance of naturals, which is one of the fastest-growing trends in demand from consumers. We know the qualitative aspect and the benefit it brings in terms of consumer preference. We will continue to strengthen our clear leadership and focus also on functional and also the next generation of natural ingredients. Also, as a platform, our cosmetic research is centered around cosmetic active ingredients with clinically proven claim-based, which is very important. Here, I'm happy to report that this team gets a lot of wins and awards around the world for their very, very strong pipeline of innovation. Now, if we move to the right side, the platform there are about the future. They are about pioneering the future of our industry, pioneering the future of IFF. They are set for IFF to accelerate on three macro trends growing with very strong relevance. The first one, no surprise, is about health and wellness. The second is about scent modulation. The last, but not the least, is the digitalization of scents. Finally, I want to highlight that sustainability became the scent division's number one priority as it impacts all our platforms, core and pioneering the future. We have secured our customers' commitment, and they expect us to supply 100% biodegradable and 100% renewable fragrances by 2030. This is in nine years. It is coming very, very fast. Our internal strength now with our bioscience position coming from nutrition and bioscience from DuPont will be able to accelerate. We will be the only company in this area to be vertically integrated. This is very exciting and a lot to be achieved moving forward. We see and we have seen a great deal of value creation potential from the portfolio management that we have deployed. Broadly speaking, we have categories in all three portfolios, as I was sharing with you, growth, balance, and fix. For each bucket, we have streamlined our strategy to focus on growth and margin expansion. Our focus is on discipline for portfolio management. We will accelerate margin equity categories for investment. For the balance categories, we will continue to leverage our market leadership position to expand margin, growth, and generate free cash flow. In addition, we will improve margin in our fix business by leveraging our industry-leading position for new access or innovation pipeline. In terms of business transformation, we took and implemented five actions to drive margin enhancement. We applied procurement best practices to drive input cost savings. We leveraged strategic pricing to protect and expand our margins. Using reformulation in collaboration with our customers to address supply and regulatory challenge while still delivering products of the highest quality for our customers, but also delivering product superiority. We also kept improving our manufacturing, optimizing our network all the time, and also reducing our operational complexity for broader savings. Year on year, we've been able to deliver meaningful savings in that front. Last but not the least, aligning our resource allocation to support the choice we are making based on portfolio management, focusing our resource and investment and prioritizing them on our growth categories. With regards to the transformation merger with DuPont Nutrition & Biosciences, we believe in the positive impact and benefits for the scent division. Expanded augmented possibilities with existing and new customers. I can tell you from the feedback that we are receiving, our customers are very excited, very confident about the new opportunities, more excited than I've ever seen them before because of leveraging our innovation that will come from a new complementary and super-powered R&D. Here, I want to highlight again, this will be the largest budget in our industry. When you look at our patents and our IP, it will be a quantum leap moving from 2,000 patents for IFF to now 12,000 patents for the combined entity. Our teams will be focusing resource, time, and energy to create a stronger combined entity and bring forward together with selected targeted customers these new capabilities. We expect that there will be many other opportunities by creating the future. This is just the beginning of the journey. We have to be very strict in our prioritization because we have to deliver our performance in our core business, and we have to force rank the new opportunities that we want to leverage and we want to capture. Let me share with you key areas that have been identified. First of all, about regenerative design and supporting the expected ingredients feedstock transformation that I was sharing with you before. Under our holistic health, understanding the emotional, cognitive, and physical impact of our products to consumers. It is all about augmented hygiene, as you can expect today. Here is to support the effective clean and off-odor modulation solution. The big focus today, everybody talks about the clean beauty combining health and bioscience product and IFF active cosmetic technology, all supporting the end markets where our customers participate or will be participating. In summary, we are very well positioned in a very attractive industry where IFF scent has demonstrated business resilience and focus, very clear focus on execution. Despite all the headwinds and we have seen and faced many during the past few years, we have always managed to generate value, deliver on our targets, deliver on our commitment to our strategy, and get market share year over year. Today, we are stronger than we were three years ago. Aligned with our strategy, we see strong performance with targeted customers, target regions, and categories. As a scent division, we are focused on driving sustainable, profitable growth with increased focus on margin expansion. We have identified growth opportunities ahead, given the expanded market access with our new core list where we participate that we have secured and targeted regional and local partners. Also, through the identified macro trends shaping our industry, we have a strong innovation pipeline across high-value platforms underlined by our commitments with a transformational sustainability agenda. Value creation is of a prime importance. We plan to maintain focus on core business growth, cost management, securing a sustainable growth model. On this note, I would like to thank you all for your time and interest today. Please do not hesitate to reach out to our corpor ate team in case you have any further questions. Thank you very much. Hello, and welcome to Nourish. I'm Kathy Fortmann, President of IFF's Nourish division. It's my pleasure to introduce you today to Nourish. Nourish is the merger of DuPont's food and beverage business with legacy Taste from IFF. It is an extremely diverse portfolio, which we've organized across three platforms: Ingredients, which is legacy food and beverage; Flavors, which was part of IFF Taste; and Food Design, which combines systems from our food and beverage business with savory solutions and inclusions, which was part of our legacy Taste business coming to us from the Frutarom acquisition. With this merger, we are now number one or two globally across the portfolio. We have the best-in-class commercial talent around the globe, and we are positioned to meet megatrends today and well into the future through our strong innovation and technology capabilities. In short, we are positioned to meet consumer and customer needs today and well into the future. If we look at the addressable market across what is now Nourish, we estimate it to be approximately $32 billion with a growth rate of 3%. Additionally, when you look at the breadth of our new portfolio, our competitive landscape has also changed. It ranges from traditional flavor houses to ingredients to bioscience, as we also represent the food enzymes and cultures from our health and bioscience business within IFF, as well as systems providers. Now, let's look at Nourish as a snapshot. It is nearly a $6 billion business with a 20% EBITDA margin. We have organized ourselves, as I mentioned, across three platforms and five regions. We are thrilled to be serving more than 43,000 customers with 5,000 professionals around the globe. If we look at it by platform, our largest is ingredients, followed closely by flavors and thirdly by food designs. We think this sets us up for both the expertise and knowledge that we have within ingredients and flavors and those combinations which can be brought to our customers through food designs. Within the regions, our largest region is North America, followed closely by Europe, then Greater Asia, Latin America, and our newest region, Ameti, which is Africa, the Middle East, Turkey, and India, a strategic growth area for us, which I'll speak more about in a minute. Most importantly, let's look at how we serve our customers. That is by category. Our biggest categories are actually beverages and culinary, followed by dairy, bars and confectionery, bakery, and snacks. Then, of course, many, many others. What we have found already early in our journey together is that we now establish critical mass and other categories as we come together as a single organization. Those include pet food, for example, oral care, OTC, and pharma. Now, let's talk more about customer engagement and the core categories that I mentioned on the previous slide. Let's start with dairy. We serve everything in dairy from traditional yogurt and ice cream to plant-based, non-dairy alternatives. That ranges from milk to ice cream and yogurt and cheese. That's right, cheese without the dairy. You can imagine what a challenge that presents from texture to flavor to color. When you look at our portfolio, no company is better positioned to meet that consumer need than we are as Nourish. We have bars and confectionery, which is everything from chewing gum and candies to cereals and bars, including high protein and nutrition bars, which are growing significantly. We have bakery, which includes artisan and industrial breads, as well as sweet baked goods, cakes, and frostings. We have the opportunity to delight our customers with our texturizing capabilities, emulsifying, as well as flavors in that segment. We have snacks. Snacks ranges everything from baked snacks to extruded snacks. What we think is also a real growth opportunity in this segment is more and more focus on healthy snacking. We think we've got the portfolio to meet that need. In fact, the growth opportunity is quite interesting. Probably we all know, right? As a result of COVID, and we spent more time at home, snacks has actually been growing significantly. Therefore, consumers are looking for more and more healthy options when they are snacking. Culinary is a huge product range for us, from dehydrated products to frozen and chilled foods, from meat and seafood solutions to sauces, and plant-based, plant-based meat alternatives, which again is growing significantly. In fact, you'll see later when I talk about innovation, it is actually a focus area from both legacy organizations. There's a huge opportunity by us coming together to more quickly meet our customer needs. Beverages. We serve a wide range of beverages from high protein to alcohol, low and no alcohol, and carbonated. That's right, from alcohol. For example, the hard seltzers and the flavor and modulation that we provide as a company into a number of beverage applications. Let's talk more about our structure. As I mentioned, we are organized in three platforms: Ingredients, Flavors, and Food Designs. In the next few slides, I'll talk more about each of our specific platforms in detail. Let's talk about ingredients. Our ingredient portfolio is vast, and we have a specific focus on natural and plant-based ingredients that can provide the right functionality and nutritional profile for our customers. We have texturizers and hydrocolloids for mouthfeel, cellulosics as binding agents, food protection for extended shelf life and clean label, protein solutions for value-added nutrition, as well as functionality in some applications, and emulsifiers and sweeteners for mouthfeel and improved taste. If you look across this space, we're actually the global leader in a number of areas, including specialty plant proteins, cellulosics, and seaweed. We also have state-of-the-art texturizing solutions. There is no better place to come if you have a challenge to solve with a texturizing solution. We have certified and sustainable sourcing of raw materials, and again, the focus on clean label-friendly solutions for our customers. We have a wide and versatile portfolio of emulsifiers. Mentioned here as well the food innovation centers we have, but I'll come to that a bit later. Let's talk flavors. We are extremely proud of our flavors business here at IFF with a 130-year heritage. We are extremely customer-focused and technology-driven. We have a range of flavors and natural taste solutions for the food and beverage industry. We have value-added seasonings and ingredients for meat, food service, convenience, alternative proteins, and culinary products. We have natural colors to make those products look even better. We're excited about what we've established in flavors, as we have core list access to all of the global consumer product companies. Additionally, through our Tastepoint model, we have a strong position with fast-growing mid-tier customers. Our reimagined and remastered innovation programs help us to drive the right innovation projects and result in growth. We're excited about our taste design and our applications expertise and the access that we have across the whole portfolio and the solutions that we can bring, again, as you heard with ingredients around clean label, but also in this space around organic and non-GMO. Now, food designs, which is where the integration really comes together across Nourish as a result of the merger between DuPont, F&B, and IFF Taste. Food designs comprise systems blends, which was part of the F&B business, savory solutions and inclusions, which were part of legacy food realm and later part of IFF Taste. When you look at this space, we have the opportunity to bring together all of the knowledge and expertise that I just spoke about in ingredients and flavors. And wow, our customers, whether it's solving a problem they have or helping them move faster into market by providing an end-to-end solution. Today, this is our smallest platform, if you will, within Nourish, but we see the greatest growth potential. We're actually a global leader in functional systems in some areas, such as dairy and ice cream. We have the broadest range of blending technologies and know-how and the ability to supply and scale those up. We have a number of proprietary products, and we have very well-recognized local brands. The name of the game here is for us to be able to take that knowledge and expertise in ingredients and flavors and bring it together for our comprehensive solution for our customers and to bring that globally with a local approach through our sales approach. The breadth of our portfolio is now unmatched in the industry and establishes for us a very strong competitive position. As you can see here, Nourish, with regards to our total portfolio now, has the most complete solution for our customers from taste, food and beverage, and H&B. That is because within Nourish, we also take to market the cultures and food enzymes in collaboration with our Health and Biosciences division in IFF. We have solutions for all end markets. Our portfolio allows us to leverage ingredients across a wide variety of categories and to offer solutions that are most relevant for our customer. For example, if a beverage customer wants to build a product or fine-tune an existing one, we can focus on the areas that have the greatest relevance to their goals. At the same time, we can offer optionality along the way and help identify future product innovation opportunities to expand our product pipeline. We're so excited about the possibilities. Let's talk a little bit more about our operating model. As I said before, we're organized in three platforms: Ingredients, Flavors, and Food Designs, and five regions: North America, Europe, Greater Asia, Latin America, and Ameti. Our commercial organizations are also supported by our innovation, creation, and design, which is our application and innovation labs around the world, by our marketing and insights, and by our global accounts teams. Ways of working have been established so that we ensure collaboration and minimize complexity. The platforms set the strategy and innovation agenda, while the region and global accounts drive execution, customer intimacy, and localization of our offerings and solutions supported by marketing and innovation. We work seamlessly with our corporate functions to drive business performance, collaboration, best practices, and productivity. What we have established is a winning team with a global reach unlike any other in the industry. We have an extensive innovation network. We have approximately 80 creative application centers around the world, and that's unmatched. We have a presence in all regions. What this means is that we are able to meet our customers where they most want to be met. Nourish is competitively positioned to drive strong value creation. We will do this by serving our customers and meeting their needs. Our strengths and capabilities lie in our overall market position being number one or number two globally across the portfolio through our robust relationships with global customers, as well as our differentiated approach through Tastepoint for mid-tier customers. Another source of competitive advantage is our strong innovation platforms paired with our sensory and consumer insights. Of course, our talent. We have best-in-class talent from both our heritage IFF Taste and DuPont F&B organizations. Our strategic intent is quite simple. We want to have industry-leading growth and to continually expand our margins. With regards to growth, we want to expand our dedicated service model to serve our local and regional customers. We want to invest in targeted growth markets such as Africa, the Middle East, Turkey, and India. We want to re-emphasize growth in Europe. With regards to innovation, and I'll say more about that shortly, we want to refresh our innovation programs to embrace the new portfolio. We want to leverage cost category innovation to drive differentiation. As for margins, we will continue to improve on the low-margin categories while focusing growth on the high-margin categories. We will also continue to deliver on cost savings and productivity to drive profitability. With regards to integration, we will capitalize on the incremental growth opportunities through cross-selling and end-to-end solutions. We will build those end-to-end solutions to deliver superior value for our customers. Let's talk a bit about Tastepoint. You've probably heard quite a bit about Tastepoint, which came to be through IFF's acquisition of Ottens and David Michael in the U.S. We were so pleased with that model and the access it gave us to mid-tier customers and the resulting growth that post the Frutarom acquisition, we established Tastepoint operations in a number of other countries so that we now have Tastepoint in all regions. With this experience under our belt, as well as the current merger of F&B and Taste, we are revisiting our Tastepoint model to see how best to optimize and leverage it for growth across the platform. We are doing that in conjunction with our distributor partners, particularly the network that came to us as part of the F&B go-to-market approach. I'm going to spend a bit more time now on what I've mentioned in terms of the targeted growth areas. We are targeting growth in Africa, the Middle East, Turkey, and India. We're excited about what that opportunity is. As you see here, the flavor potential alone is estimated to be $2 billion, and the market growth is 8%, well above the average global growth rate. As announced in October, we have launched our new taste facility in Dubai to support growth in the region. This state-of-the-art taste creative center will tap into the rich culinary heritage of the region to serve the specific innovation needs of our local customers. We're excited about the potential. Let's talk about Europe. Europe is now our second-largest region with a combination of food and beverage and taste. We have decided to organize Europe into four sub-regions: North Europe, West Europe, South, and East. We focus on the same strategic categories that were mentioned previously. Also within Europe, we have Tastepoint. We have Savory Solutions, which was part of the legacy Frutarom. Given the degree of acquisition and mergers within Europe, Europe is now our most complex region. Therefore, we are looking at how we can reinvigorate and streamline Europe to drive growth and reduce complexity. We are excited about the potential and the talent that we have to do this. Very early, we compared the existing IFF Taste innovation platforms, which are shown across the top of this slide, against our new portfolio, including the food enzymes and cultures and health ingredients from H&B. What you see is that our innovation capabilities are extremely complementary. Post-close, we quickly evaluated what we could do to strengthen our innovation. On this slide, what you see is we revisited the legacy IFF Taste reimagined programs of culinary, delivery, modulation, natural, protein, and citrus. We compared those to the innovation platforms or consumer platforms within F&B. Again, you see quite some overlap. We've got the plant-based again. We've got a number of healthy platforms. What we wanted to do is to make sure that we captured what makes both IFF Taste and heritage DuPont food and beverage so successful, and to combine those so that we could drive further focus and resource to drive growth. The key areas we've landed upon as far as our innovation pillars are digital for faster and better products and processes, clean to contribute to consumers' desire for clean label, waste to support the circular economy and sustainability, protein to meet the increasing demand for plant-based proteins, delivery to enhance consumers' eating experience, and wellness to meet the ever-increasing demand for healthier products. We're thrilled about this combination and the strength that it brings as we were working in both organizations in a number of these areas. By coming together, we can drive innovation even faster and further. We have also embarked upon a portfolio analysis. Our portfolio is broad and diverse with a range of growth and margin profiles. There is a potential to create additional value through portfolio management and disciplined resource allocation. We will drive strategic choices to accelerate growth and expand margins. We will look at where we need to grow, where we will invest disproportionately to accelerate that growth, where we have balance, and what areas we need to fix. There will be more to come. This slide represents what I am most excited about with regards to Nourish. We are stronger together. We are extremely well-positioned to meet customers' needs today and in the future. We can sell single ingredients and flavors if that's what customers want. We can sell combinations to address formulation challenges. We can provide end-to-end product design. Why is this so exciting? If you look at the traditional flavors business, typically what happens is the customer develops the base product, and then they put out a brief to get the flavor or flavors that they want. Likewise, if you look at the way the development of that base happens, they very often work with ingredient suppliers to develop the base, and then the flavor comes later. Now, imagine that we as Nourish can help the customer reduce their innovation and product development cycle by being able to give them great tasting options from the beginning. Again, we will meet our customers where they want to be met. We will provide them flavors if that's what they choose, or single ingredients, combinations, or we will even help them with end-to-end product design. The opportunities are endless. Additionally, I'd like to say something about revenue synergies. I hope when you look at this list, what you see is these are a number of areas that were already work in progress by the legacy organizations. By coming together, we can drive growth faster. As part of our integration efforts, we already established clear paths for revenue synergies across our portfolio. As I mentioned, we prioritize eight key synergy opportunities based upon feasibility and revenue potential. Most of these have been mentioned throughout the presentation because they already fit within the innovation platforms from the legacy organizations. We are excited that by working together with our expanded capabilities and portfolio, we can accelerate. Further, we now establish critical mass in additional areas such as pet nutrition. We have already seen progress, and we have seen early wins. We are well-positioned to achieve our synergy goals. In closing, I hope that you are as excited about Nourish and what it can be as I am. We are extremely well-positioned. We are an industry leader. We have the ability to drive top-line growth. We have a robust innovation pipeline. We have the opportunity to further expand margins, and we can capture value through delighting our customers with end-to-end solutions. Thank you for your time.