At this time, I would like to welcome everyone to the IFF Third Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode until the formal question-and-answer portion of the call. To ask a question at that time, please press star one on your telephone keypad. If you would like to remove your name from the queue, please press the pound key. Participants will be announced by their name and company. In order to give all participants an opportunity to ask their questions, we request a limit of one question per person. I would now like to introduce Michael DeVeau, Head of Investor Relations. You may begin. Thank you. Good morning, good afternoon, and good evening, everyone. Welcome to IFF's third quarter 2021 conference call. Yesterday, we issued a press release announcing our third quarter financial results and our outlook for the remainder of 2021. A copy of the release can be found on our IR website at ir.iff.com. Please note that this call is being recorded live and will be available for replay. I ask that you take a moment to review our forward-looking statements. During the call, we'll be making forward-looking statements about the company's performance and business outlook. These statements are based on how we see things today and contain elements of uncertainty. For additional information concerning the factors that can cause actual results to differ materially from our forward-looking statements, please refer to our cautionary statement and risk factors stated in yesterday's press release. Today's press presentation will include non-GAAP financial measures which exclude those items that we believe affect comparability. A reconciliation of these non-GAAP financial measures to their respective GAAP measures is available on our website. Please also note that we'll be using combined historical results for the third quarter, defined as three months of legacy IFF results and three months of N&B results. For nine months year-to-date, defined as nine months of legacy IFF, January to September, and eight months of N&B, February to September, in both the 2020 and 2021 periods to allow for comparability in light of the merger completion on February 1, 2021. With me on the call today is our Chairman and CEO, Andreas Fibig, and our recently appointed Executive Vice President and CFO, Glenn Richter. We will begin today's call with our prepared remarks, and then we'll take any questions that you may have at the end. I would now like to turn the call over to Andreas. Thank you, Michael. Good morning, good afternoon, and good evening, everyone, and I thank you for joining us today. Before I dive into our performance results, I would like to take a moment to thank all of our dedicated colleagues around the world who have continued to work tirelessly in a challenging environment to fuel the global consumer goods supply chain and meet our customers' needs. I can't thank each and every one of you enough for your hard work, dedication, and focus. I also want to take a moment and welcome Glenn Richter, who is joining us on today's call for the first time. As you know, Glenn joined us a little over a month ago as our new Executive Vice President and Chief Financial Officer. I'm sure you will all find that his experience aligns perfectly with our strategic goals, making him an incredible asset to our team. I also want to thank Rustom for his leadership and contributions during his time as IFF's CFO. Rustom played an important role in our combination with DuPont N&B, and for that, we are immensely grateful. He has been important in putting IFF in a strong position it is today. We wish him all the best in his future endeavors. On today's call, I will begin by providing an overview of year-to-date performance, including the progress we have made so far on our integration. I will then turn it over to Glenn, who will provide a more detailed look at our third quarter financial results. Before we conclude today's call with a question answer session, Glenn will also speak to our outlook for the remainder of the year. Now, as I mentioned, I'd like to kick us off on slide 6 by discussing our financial highlights for the first nine months of 2021. Throughout the third quarter, we remained laser focused on extending the momentum IFF established in the first half of 2021. In the first nine months of 2021, IFF achieved $8.6 billion in sales, representing 10% growth or 7% on currency-neutral basis. A strong reflection of the strengths of our market-leading platform and the compelling position we have established with our customers as a combined company. We delivered a 22% adjusted operating EBITDA margin and a combined EBITDA growth of 5%. As we will discuss in more detail, we continue to confront meaningful inflationary pressure due to higher raw material, logistics, and energy costs. We have maintained our robust cost discipline efforts and are entering the fourth quarter with continued financial strengths, having achieved $884 million free cash flow, or approximately 10% of our trailing nine-month sales, driven by strong cash generation. This cash generation has enabled us to stay on track to meeting our deleveraging target. Finally, as I've mentioned in previous quarters, continued refinement and optimization of our portfolio is a critical component of our ongoing integration efforts. I am pleased to share that we have completed the divestiture of our food preparation business and are on track to complete the divestiture of our Microbial Control business in the second quarter of 2022. Together, these two important divestitures will create a more focused IFF. Allowing us to hone in on the strengths of our core business segments and then create a stronger, more focused business. We will continue to evaluate and optimize our portfolio as we move forward with our integration, looking for opportunities to rapidly divesting other non-core businesses. We started this year with a simple commitment to focus on execution and deliver on the potential of the new IFF. I'm pleased to say that even in a very challenging global environment, our team has met our integration objectives while delivering strong results with continued sales momentum and profit growth. Now turning to slide seven, I'd like to walk you through some of the regional sales dynamics underpinning our results for the last nine months. First, I'm excited to share that we continue to experience strong growth in all four of our key operating regions, despite ongoing and unique market uncertainties that have persisted across each geography. In North America, we achieved 7% growth across all four of IFF's business divisions, led by high single-digit growth in Nourish and Scent. These two divisions have continued to perform exceptionally well quarter after quarter. In Asia, we experienced a 7% increase in sales, led by continued double-digit growth in India, as well as a low single-digit growth in China, even amidst particularly strong recent market complexities in the region. Our business unit perspective, Nourish, Scent, and Pharma Solutions continue to carry the region's growth throughout the year to date. Latin America continues to be our strongest performing region and sales growth leader, having achieved 12% growth, largely fueled by double-digit growth in our Nourish and Scent divisions and continued local currency strengths. Perhaps most impressive is the 7% sales growth that our EMEA region achieved to date, which includes a robust double-digit increase in the third quarter. Impressive performance of our Scent and Nourish divisions drove this encouraging rebound, with Scent delivering double-digit growth led by our Fine Fragrance business, and Nourish delivering high single-digit growth led by our food service business. We expect this momentum to continue through the remainder of the year, and we will stay diligent to ensure our business remain nimble, positioned to perform against any new supply chain challenges that may arise. Moving now to slide eight, I'd like to take a closer look at our nine months year-to-date sales performance across IFF's key business segments. Our largest division, Nourish, has been a strong performer throughout the year, achieving currency neutral sales growth of 9% with broad-based strengths from our flavors, ingredients, and Food Design businesses. Scent has had a similar strong year, delivering 8% in currency neutral growth to date, led by impressive double-digit growth in Fine Fragrance, as well as strong growth in Consumer Fragrances and ingredients. Health & Biosciences has seen strong demand in key focus areas, including home and personal care, animal nutrition and culture and food enzymes. As you know, we are in the process of selling our Microbial Control unit, which has continued to experience headwinds through this year, but has rebounded from COVID impacted lows with growth in both Q2 and Q3. This divestiture should further enhance the performance of this important division. Pharma Solutions, despite significant challenges, has fared so far this year. Supply chain challenges have had an outsized impact on this division throughout the year. While we have seen encouraging growth in our industrial business, the division still struggles to meet customer demand due to raw material availability challenges and logistics issues. Now on slide nine, you will see that we have outlined some of the factors influencing the growth and profitability of each of our four divisions so far this year. As I previously mentioned, Nourish has had a strong year with flavors and ingredients experiencing double-digit growth. We have been working hard in our execution to manage volume and cost to limit margin impact from higher raw material costs, which continue to be a headwind on our profitability. While we have seen some margin impact of about 20 basis points in the year, we are proud of how our execution has mitigated much of the negative headwinds while delivering meaningful growth. Our team has done an exceptional job increasing prices to combat inflationary pressures, something that will continue to be critical as we move forward. In Health & Biosciences, we mentioned broad-based growth across the markets, but here we are seeing significant margin impacts from higher logistics costs. As shared on our second quarter call, part of this is that freight rates have increased significantly, but also we are having higher logistics costs to balance robust customer demand and available capacity. We have increased capacity investments in this business to support long-term growth, investing in R&D and plant technology to increase output later this year and into 2022. The Scent division has certainly realized the strongest all-around bounce back as consumer demand rises across end markets. Notably, Fine Fragrances alone has realized 36% growth year to date, with double-digit growth in Cosmetic Actives and continued solid performance in Consumer Fragrances. At the time, Scent's profitability expansion of 110 basis points has been led by higher volume, favorable mix, and higher productivity. As I mentioned, Pharma Solutions was the only division in which we did not experience sales growth due to continued global supply chain challenges that have impacted our ability to meet strong customer demands. These challenges, including supply and logistic constraints and ongoing inflation, have in turn significantly pressured our margin compared to the first nine months of 2020. Moving to the fourth quarter and entering 2022, we will be closely tracking supply chain dynamics and will continue to prioritize returning our Pharma Solutions business to the profitability we know is achievable. In the fourth quarter, we're expecting year-over-year top and bottom line performance to improve. As we have been talking about today, IFF is realizing very strong sales momentum across our business. This is a reflection of the powerful new position we have created through our combination with the N&B business and a compelling value proposition we can offer to our customers. While we are pleased to put many of the growth headwinds related to the pandemic behind us, it is important to understand that our growth this year is in fact meaningful above pre-pandemic results. If you look at the total business, you will see that on a comparable nine-month pro forma basis, the new IFF has realized 9% sales growth over 2019 results. This strength is broad-based too. Each segment is realizing strong growth above pre-pandemic levels. Nourish as a business that was particularly hard hit through the pandemic is now strongly growing with sales growth of 9% compared to pro forma 2019 nine-month period. Important, especially given that much of the integration work is coming from within this division. These results showcase how our position in the market has been fundamentally strengthened through the merger and how our teams are delivering the full potential of IFF to our customers. Moving to slide 11, I would like to discuss the strong progress we have made in terms of synergy realization. For just nine months since completing our merger with N&B, our synergy progress reaffirms the tremendous opportunity we have in front of us as a combined company. Having received significant and highly encouraging positive feedback from our customers, along with persistent robust customer demands, we are confident in our ability to meet our revenue target. To date, revenue synergies have started to contribute to our top line performance, and we are pleased that our project pipeline is strong and growing. In the first nine months of 2021, we've achieved approximately $40 million in cost synergies, representing nearly 90% of our 2021 cost synergy target with one quarter to go. This was largely a result of the comprehensive savings programs we have implemented, where we are leveraging our increased scale and optimizing our organization. I'm confident that we will more than exceed our $45 million year one synergy target, and I'm encouraged by the continued progress we are making towards achieving our three-year run rate of cost synergy target of $300 million. Now, before I turn the call over to Glenn, I want to spend a second to really underscore what he brings to us here at IFF. His background is perfect, but there are two areas I think really stand out. First, he brings tremendous depths with private and public companies and leading finance teams to enhance discipline and build processes that drive towards the goal of shareholder value creation. He has time and time again shown an ability to help businesses accelerate top line growth while driving margin expansion. In this way, he consistently implements productivity initiatives with lasting impact. Second, he has been through several large-scale M&A integrations with a track record of strong success. As we continue to execute on our multi-year transformational integration, this experience is invaluable. With that, I'd like to turn the call over to Glenn. Thank you for the warm welcome, Andreas, and good morning, afternoon, and evening to everyone. Since joining IFF in late September, I've had the opportunity to briefly meet many in our investor community, and the most common questions I've been asked is why did I join IFF and what are my near-term priorities. Consequently, before I review our financial results, I thought it would be helpful to briefly provide these perspectives as an introduction. There were three very compelling reasons for me to join IFF. First, and perhaps most importantly, IFF is a company that is truly making a difference in helping solve some of the world's biggest challenges. We are delivering reliable, innovative, and sustainable solutions that are directly helping address issues such as improved nutrition and wellness, reducing greenhouse gas emissions, and creating a more sustainable environment. Second, the industry has very attractive organic growth characteristics, benefiting from continued strong consumer tailwinds, from increased consumer focus on wellness and natural and sustainable products, increased demand in emerging markets, and new consumer needs presented by aging demographics in developed markets. I also believe that scale will become an important basis of competitive advantage as customers demand leading ESG platforms, increased innovation and speed to market, global supply chain resiliency, and help in navigating increasingly complex regulations. Third, I firmly believe that the combination of IFF with DuPont's legacy N&B business has uniquely created an industry-leading platform. Since joining IFF, I've tried to immerse myself in the business completely, visiting sites, meeting with our business and operations teams, and spending time at our R&D and creative centers. I've also prioritized hearing from you, our investors and analysts. Frankly, today I'm even more bullish on the strength of IFF's global capabilities and the tremendous long-term potential we have to drive strong top and bottom line growth. Relative to my near-term priorities, I have four primary areas of focus. By far our most pressing priority is to tackle the challenges from the global inflationary environment and to successfully execute broad-based pricing actions across all of our businesses. Second, I'm also focused on enhancing our core financial processes and metrics, including better forecasting, improved business-level return metrics, and tighter disciplines for our investment decisions so that we're maximizing our growth potential and return on invested capital. A third area of focus is ensuring we fully deliver on our merger synergies while also accelerating our focus on sustainable productivity. Finally, while we have made very good progress to date on our portfolio optimization, there is significant opportunity remaining. In the days and months ahead, I look forward to learning even more about this organization and engaging with all of you. With that, I'd now like to provide an overview of our consolidated third quarter results. In Q3, IFF generated approximately $3.1 billion in sales, representing a 12% year-over-year increase, primarily driven by the continued double-digit growth in our Nourish division and strong increases in both Scent and Health & Biosciences. In terms of contribution, volume performance was the primary driver of our growth, as pricing represented approximately two percentage points in the quarter. Though our gross margin continued to be challenged by inflationary pressures, it was somewhat offset by our strong cost management focus, which resulted in adjusted operating EBITDA growth of 4%. While we had solid year-over-year EBITDA growth, our gross margin was down by 210 basis points as our pricing actions recovered only about 65% of our raw material increases, or approximately 50% in the third quarter when we include raw material, logistics, and energy increases. As we move forward, we are squarely focused on improving this recovery rate relative to the total inflationary basis, but expect that in the short term, specifically the fourth quarter, we will see a similar pressure given the time lag of price realization. Let me finish on this slide by saying that we achieved strong earnings per share, excluding amortization of $1.47. On the next few slides, I will dive deeper into the third quarter financial results for each of our four divisions. Turning to slide 13, I'll start with our Nourish division, which had an exceptional quarter. In Q3, Nourish achieved 17% year-over-year sales growth or 15% on a currency neutral basis, driven by robust double-digit growth in flavors for the second consecutive quarter. Ingredients also grew double digits with all subcategories: protein solutions, pectin and seaweed extracts, emulsifiers and sweeteners, and cellulosics, LBG and food protection increasing double digits. Food design also grew double digits led by food service, where pandemic-related restrictions continued to be lifted with away-from-home consumer behaviors returning to more typical levels. As a result of strong volume growth, price increases, and our focus on cost management, Nourish achieved an adjusted operating EBITDA increase of 19% and margin expansion of 30 basis points. On slide 14, you'll see that our Health & Biosciences division saw year-over-year sales growth of 7% or 5% on a currency neutral basis, led by double-digit growth in home and personal care and high single-digit growth in cultures and food enzymes. Our health category was soft this quarter due to a particularly strong double-digit year ago comparison, though we are pleased with the results when we look at it on a two-year basis. As Andreas mentioned earlier, inflationary pressures and higher logistics and energy costs to keep up with the robust customer demand has challenged our margins across our business, with H&B particularly impacted, which drove an operating EBITDA decrease of 12%. Unpacking this a bit deeper, the bulk or 70% of our year-over-year EBITDA decline came from higher air freight volumes where we have increased intercompany shipments to manage available capacity. As we shared last quarter, we have increased capacity investments in this business to support long-term growth and have also invested in R&D and plant technology to increase output. Until then, we will be incurring higher costs to support our customer demand, and this will impact our EBITDA margin. Turning now to Slide 15, our Scent division continues to perform extremely well and experience strong growth, achieving 10% year-over-year growth or 9% growth on a currency-neutral basis. This performance was driven by Fine Fragrances' continued rebound, which grew approximately 36%, led by new customer wins and improved volumes. Our Ingredients category also continues to outperform well and contributed to Scent's overall success, seeing double-digit growth for the second consecutive quarter, led by strong performance in both Cosmetic Actives and Fragrance Ingredients. While our Consumer Fragrances business saw modest low single-digit growth against a strong double-digit year-ago comparison, this is a marked improvement from Q2, and we expect further growth as we move forward. On a two-year average basis, Consumer Fragrances remains strong at 9% in the third quarter. Scent also experienced adjusted operating EBITDA growth of 10%, driven by strong volume growth and favorable mix. Margin was down modestly due to higher raw materials and logistics costs, a trend we see continuing. I will provide more context shortly. Lastly, in our Pharma Solutions business, we saw a currency neutral sales decrease of 2% due to continued supply chain challenges related to raw material availability and logistic disruptions with it, which have made it challenging to meet persistent and growing customer demand. While Industrials has continued to recover from COVID-19 lows, our core pharma business saw soft performance against its solid year-ago comparison. The division's adjusted operating EBITDA and margin also continue to be impacted by higher sourcing, logistics, and manufacturing costs. We also continue to see the impact of force majeure and raw material shortages with suppliers and shutdowns due to Hurricane Ida, resulting in unplanned outages in some of our product lines. While we expect the current market environment and macro supply chain problems to continue challenging the segment, we remain optimistic, and as Andreas mentioned earlier, remain focused on returning the division to profitability as these industry conditions stabilize. Now on Slide 17, I would like to review our cash flow position and leverage dynamics for the first nine months of 2021, both of which remain a top priority for us. So far this year, IFF has generated $884 million in free cash flow, with cash flow from operations totaling approximately $1.1 billion. As the team has mentioned in previous quarters, we are investing in our growth accretive businesses as well as integration activities. Year to date, we have spent $242 million or approximately 2.8% of sales on CapEx and expect a significant ramp-up in fourth quarter as our annual spend is traditionally more back-half weighted. From a leverage perspective, we are continuing to make substantial progress toward achieving our deleveraging target with our cash and cash equivalents finishing at $794 million, including $122 million restricted cash, with gross debt reduced by $446 million versus the second quarter to $11.5 billion due to our debt maturity schedule as part of our deleverage plan. Our trailing 12-month credit-adjusted EBITDA total approximately $2.7 billion with a 4.1x net debt to credit-adjusted EBITDA. With our continued strong cash flow generation, including proceeds from divested non-core businesses, we remain confident that IFF is on track to achieve our deleveraging target of less than 3 x net debt to EBITDA by within 20-36 months post-transaction close. Turning to Slide 18, I'd like to take a moment to discuss the cost inflation trends that have impacted our business this year. As I mentioned earlier, IFF and the industry at large have seen significant year-over-year inflation increases, which have been accelerating in the recent quarter. The inflationary pressures we are seeing today are significant. Just as examples, vegetable oil prices hit a record high after rising by almost 10% in October. The price of wheat is up almost 40% in the last 12 months through October. Brent crude prices have more than doubled over the past 12 months to the highest level since October 2018. In the U.S., natural gas prices are up 100% from a year ago, and in the U.K., they're up about 500%. Transportation rates have increased significantly given the high demand and limited capacity to ship. Across the raw materials, logistics, and energy markets, like many industries around the world, we have seen costs accelerate each quarter, which has led to our margins being adversely impacted. For example, in the first half of 2021, gross margin was down about 150 basis points, while in the third quarter we were down about 210 basis points. As we look ahead, we are being prudent in our planning as we expect these inflationary pressures will continue throughout the fourth quarter and over the course of 2022. Consequently, this will require us to successfully implement significant pricing actions across each of our businesses, as well as improve our sourcing efficiencies, accelerate operational improvements, and capture targeted integration synergies to drive profit growth. Now moving to slide 19, I would like to share what this means for our consolidated financial outlook. For the full year 2021, we are maintaining the increased total revenue forecast we announced in September to account for the strong demand. For the full year 2021, we are targeting $11.55 billion in total revenue, or approximately 8.5% growth, up from the forecast of $11.4 billion or 7% growth that we disclosed in the second quarter. We also expect our sales growth to continue in the fourth quarter as our Q4 quarter-to-date sales trend is solid. As mentioned, unprecedented macro supply chain challenges and inflationary pressures continue to impact our industry, and we do expect this to continue in the foreseeable future. While we are intently focused on offsetting these inflationary pressures through pricing actions, these are lagging the inflationary pressures, and as a result, we have further revised our Adjusted EBITDA margin to be modestly below 21%, down from approximately 21.5% that was forecasted in September. About half of this reduction is due to lower gross margin in the third quarter and the other half stemming from higher cost trends we see in the fourth quarter. For the full year, we are targeting low single-digit EBITDA growth, a solid improvement in light of the external challenges. We also adjusted our CapEx spend outlook down as we have been very thoughtful in balancing near-term operating priorities with the need to add capacity to support accretive growth across our businesses. Overall, we are pleased of the progress we've made to date. Strong top-line growth and a commitment to meet near-term macro cost pressures, and we're confident that IFF is on the right path and poised for continued success across our core business. I'll now turn the call back over to Andreas for some closing remarks. Thank you, Glenn. Before I wrap it up, I'd like to reiterate how proud I am of IFF and our thousands of employees around the world who have showcased a remarkable resilience throughout an evolving and continuously uncertain industry environment. We have continued to deliver strong year-over-year sales and profit growth, and I'm confident that with our top-notch financial and operational structure supported by Glenn's financial leadership, we will be able to maintain and bolster our strong financial profile while continuing to deliver for both our shareholders and our customers. Q4 is off to a solid start, and I know that our momentum will propel us to achieve strong sales growth for the full year and bring us another step closer to achieving our synergy targets. In sum, it is clear to me that IFF is in an incredibly strong position. We knew entering this year that the new IFF was poised to change our industry. To do so, we had to execute. As we look at industry-leading sales growth for the full year, I'm just so proud of how everyone here stepped up and executed on our vision and delivered against our potential. IFF is once again the clear leader of this field, creating another iconic chapter in this company's 132-year legacy. This core strength of the business is why I felt now was the perfect time to start the transition to find IFF's next CEO. I have every confidence that now is the right time to let the next chapter of IFF's legacy begin. As we announced, the search has begun for my successor, and we expect that person to be in place by early 2022. I'm fully committed to a seamless transition and look forward to talking to you all about this more in the near future. Thank you all for your support. With that, I would like to open the call for questions. Thank you. To ask a question, please press star one on your telephone keypad. If you would like to remove your name from the queue, please press the pound key. In order to give all participants an opportunity to ask their questions, we will press the limit of one question per person. Our first question comes from Heidi Vesterinen with Exane BNP Paribas. Your line is open. Morning, everyone. I have a question for Glenn, actually. Thanks for the intro on why you joined IFF. What do you think of IFF's long-term targets, please? Thanks. Yeah, good morning. Thanks for the question. We'd have to sort of break them down relative to component parts. First of all, relative to top line, as we mentioned, we're very pleased. We're tracking extremely well versus the long-term targets. When you take a look at how we're tracking versus competition, which is another great indicator, we're actually very, very pleased in terms of where we are. We sort of check that. We would say relative to our deleverage target, getting below three times by year three, we're feeling very comfortable with that. The combination of the cash flow generation from the business remains strong. As you know, we've announced a couple of divestitures, and we're continuing to look at other non-core businesses. I would check both the deleverage as well as our free cash flow. You know, the area that really needs work is around our long-term margin objective. As you know, we have a 26% EBITDA margin target. That was easier when we started off with a higher number at the beginning of the year versus the most recent guidance. We're now about 500 basis points off that relative to the guidance this year. As we approach our 2022 plan, we're spending energy sort of thinking about that multiyear target. I think structurally, there are a couple of factors that we think still play in the favor of not only increasing where we are from an EBITDA margin, but potentially getting us back to that. One is clearly the biggest impact this year, unexpected, has been the inflationary environment. We'll undoubtedly probably talk more about this, but we've lost about 200 basis points this year at our margin relative to inflation net of what we expect to price. In addition, we've had some pockets of higher use of freight costs in a couple of our business. So that's about 200 basis points. We still feel very confident on achieving the long-term synergy objectives, so the cost synergies. I would submit there's sort of probably additional productivity in the business. I mean, if you strip out the material side of our business, we have over $4 billion of cost between our manufacturing operations and then SG&A. I think we've just sort of begun to scratch the surface relative to that with our synergy targets. That being said, we are working very intently right now to sort of think about and actuate our pricing initiatives and also think about a longer-term productivity as well. Thank you. Thank you. Our next question comes from Matthew DeYoe with Bank of America. Your line is open. Morning. I appreciate all the added detail in the slides on the cost side, but just trying to understand better the margin contraction a bit and how we got to the point where we're cutting the guidance again. I mean, if I look at, you know, Q3 and then moving into Q4, can we talk a little bit about how costs are coming in versus where you had budgeted them? On that end, can you push price to offset logistics costs for businesses that you've just won recently? Is this kind of just a cost of doing business and that margin component's gonna come down or improve when costs and capacity come out? Yeah. Good morning, Matthew. This is Glenn. I'll start with answering and then maybe turn it over to Andreas. You know, in general, the biggest hit, as I just mentioned, on our business this year has basically been material costs broadly impacting our business. Of the 200 basis points, it has impacted us and anticipates impact is about 200 basis points in terms of margin. About 2/3 of that is related to rate increases. That's a combination of our raw materials, our energy, and our logistics costs. What's happening relative to each of those buckets is earlier in the year, we were thinking mid-single digit relative to inflation in raw materials. It's now high single digit, approaching 10% in terms of the annual inflation. We're seeing logistics costs continue to accelerate. That's in the mid-teens. Energy, as everyone's well aware, has been extremely volatile, and it's been trending up about 30% year-over-year. By the way, the planning posture for 2021 is we really have relatively flat inflationary pressure, so we didn't expect any of our material costs to go up. We have a much more significant impact relative to what we'd anticipated just a couple of quarters ago. I would say the rest of our cost structure is working quite well. We have actually delivered strong results against our R&D, sales and administrative expenses. We're actually exceeding plan relative to our costs, so we're actually lower at that point. In general, manufacturing is working on productivity, although constraints in our system have limited some of the capacity gains we can get and some of the efficiencies out of the system. The pricing dynamics are that we are working very, very aggressively on capturing the pricing. To date, we're capturing and expect to capture only about $0.50 on the dollar from inflation this year, and that's simply a lag factor relative to our ability to go to market and implement. I will note that as we look out in 2022, we are anticipating those inflationary trends to continue into next year, and we are basically planning our pricing actions accordingly, i.e., each of our businesses are thinking about not only what has hit us this year, but what we anticipate to hit next year, and we're executing against that. To your last point on pace, that depends by business. We have some, but not a lot of multi-year contracts. In a lot of most cases, we have annual contracts, and in many, or if not most of those cases, they tend to run on a fiscal cycle, so beginning of year forward. Last comment I would make is we're sort of in, I'd say, unprecedented environments given the level of inflation. It is affording us an opportunity to go back in almost all cases to our customers and discuss the inflationary environment vis-à-vis our pricing going forward, you know, even when we have sort of contractual relationships in place. Let me maybe turn it over to Andreas. Thank you, Glenn. I think it's a very comprehensive answer. Just on one aspect you asked, Matthew, on the logistics. Obviously, we go back on logistics as well, either with price increases or surcharges. It's a bit tougher for newly won contracts, obviously. We try what we can do because that has a huge impact on our business, in particular on the Health & Biosciences business. Here, I think there's another element in it, we are working to increase capacity because there's a lot of demand for, in particular for our enzyme business. We just installed new fermenters in Hanko in Finland, and there's more to come for the first half of next year, which will help us to decrease logistics costs here as well and fulfill what we get in terms of demand from our customers. We're very optimistic on this one because the technology is superior and it's certainly a good growth driver for us going forward. We'll take our next question from Mark Astrachan with Stifel. Your line is open. Yeah, thanks, good morning, everyone. I guess just building on the last question, Glenn, you know, maybe specifically if you're willing to talk about it, and obviously you're early in the process, but how do you currently see inflation for 2022? And how should we think about when you expect to have enough pricing implemented to cover inflation? Obviously, you talked about $0.50 on the dollar, but what's the timeline for more pricing to be in place? And also how do you think about offsets in terms of dollars versus margin recovery and the timing therein? Yeah. Hey, thanks. Thanks for the question, Mark. I sort of semi-answered it with the intro. We're in the early phases of locking down the 2022 plan. We desire to go out early in the year with as much as we can relative to our pricing actions. However, the pace at which we're able to implement that vis-à-vis the pace of inflation, we're not sure when the curves will cross over from the standpoint. It's likely to be sort of late second quarter into the second half of the year. I would say stay tuned. We're really still working on that. The next question comes from Adam Samuelson with Goldman Sachs. Your line is open. Hi. Yes, thank you. Good morning, everyone. I guess first, Andreas, you talked through some of the regional and business sales trends a little bit more on a year-to-date basis. Hoping you could kind of frame that kind of from the third quarter and into the fourth, kind of where some of the pluses and minuses are. Specifically within that kind of organic sales guidance, kind of where pricing was in the third quarter and where you think it's gonna be in the fourth as we evaluate kind of what the tailwind in 2022 could be as you go back to customers on price. If I could just sneak a quick other one in on synergy realization. Can you just help us think about the cadence of cost and revenue synergy realization in 2022, especially on the cost side, where it would seem like an inflationary environment makes it harder to achieve some of the procurement savings that had been previously targeted? Thanks. Yeah. Thank you, Adam, for the question. What we have seen in Q2 and Q3 is that we have grown about 2% price. The rest was volume. Going forward, we might see a little bit more in the fourth quarter in terms of price. But as we said, we had a good start sales-wise into the fourth quarter. October came in good. We don't have the final P&L yet, so we can't talk about that. Synergy realization is going actually on the cost synergies extremely well. As you have seen, we have already realized $40 million in the first three quarters of the 45 we have promised. It's very likely that we will overachieve. On the sales synergies, we are very much on track. I see, when I visit our facilities, and I was basically out there in the field the last week in Europe, that the teams are working very nicely and very well together. We see that more sales synergies are coming in, and that shows that we are building a very strong position for the company going forward. In terms of the different categories as well, we see still a good and good performance on the Fine Fragrances side, which is very helpful. It's not just a good recovery, but it's a good growth rate here as well. That's helping the whole result for the company going forward. I think that's what we can say about the fourth quarter. The next question comes from Gunther Zechmann with Bernstein. Your line is open. Hi. Thanks for taking my question. Welcome, Glenn. The photo on the slide looks very useful, so must be active ingredients from Lucas Meyer Cosmetics. Thanks for sharing the percentage change in raw material versus freight versus logistics. Can I just check that the numbers you gave earlier, Glenn, are what you include in the full year guidance or current run rate? Pricing has picked up to 2% of sales in Q3. Can you share the exit run rate out of Q3 or end of October if you have it, and what further price increases you expect to push through, please? Good morning or good afternoon, Gunther. Good to hear from you. I'll answer the second question first. Q4 pricing, iEDX array from Q3 is going to be very consistent with Q3. So it's about two points. It's slightly higher in Q4 versus Q3. As a result of that, actually the inflation pressures are gonna slightly outpace once again within the quarter, just given the cost increases from the standpoint. Just as a follow-up to that, really, we're focused on aggressively implementing late this year into 2022 on that front. Of the full year margin guidance, relative to the freight impact, we have about 200 basis points associated with cost. About 2/3 of that is pure rate, and about a third of that, or about 60 basis points is related to higher usages of freight, principally air and principally to support our H&B business because of capacity limitations. That piece, as Andreas had mentioned, will take us some time to work out through 2022 as we address some of the capacity constraints. The next question comes from John Roberts with UBS. Your line is open. Thank you, and best wishes, Andreas, for the future, and welcome, Glenn. Andreas, your customers are seeing a lot of bulk raw material cost increases, so they're probably feeling even more cost pressure than you are. Do you see more reformulation going on, and is that providing any opportunities for more wins if your customers are reformulating their products a little bit more frequently here because of their cost pressures? John, thank you. First of all, thank you for the question. We see reformulation. Is it necessarily more than what we have seen before? Probably not. What we see in general, what comes in terms of projects are bigger projects, less projects, but bigger projects, which is actually good for us, taking into consideration that we will win more of these projects. The cost for us is reducing in terms of the average project. That's what we see at the moment. Indeed, many of our customers see good bulk increases, but the discussion with the procurement people on the customer side is going okay and well because they know what's happening on the raw material frontier. I think that's where we are. What we see is still that we have really good, strong demand from most of our customers, and that's very helpful in terms of the business and also in terms of the momentum we have as a business going forward. We have to take into consideration we are still in the integrational phase, and we are gaining share. That's what we see also in comparison to our competitors. We are making good progress in the integration as well. That's our word on it. The next question comes from Jeffrey Zekauskas with J.P. Morgan. Your line is open. Thanks very much. In your initial remarks, Glenn, you said that there remains significant opportunities for portfolio optimization. Does that mean that there's another, I don't know, $500 million-$1 billion in revenues that can be monetized? And second, can you describe or articulate your capital expenditures for 2022 and 2023? And what’s the arc of capital expenditures and what are the priorities to spend on? Yeah. Hey, good morning, Jeffrey. This is Andreas. On the portfolio, as we said, around about 5% of sales, that's what it is, and we are working on it. More will become probably early next year, and then we can be more transparent around it. But we are very happy with the moves we have made on the portfolio, and there's more to come. On the CapEx, I hand it over to Glenn. Sure. That's good. Good morning. As you recognize, we updated our guidance for this year relative to our full year CapEx spend at 4%. That's in part because of just the ability to execute our capital programs well given all of the different priorities we have in the business. Part of that's just continue to be more surgical, I'll say, relative to where we're investing capital. We do anticipate that will ramp up next year as we're putting together our 2022 plan, largely focused on our higher margin and higher growth businesses. A big piece of that actually is really debottlenecking and enhancing our capacity situation into next year. I'll say more to come around the plan standpoint. We had, I think, previously guided to having spent a little bit more CapEx around the business going forward for capacity reasons. The other area I would just note, although it's a much smaller portion, is around IT through an integration activity. We have some additional activities as we go into next year as well. The next question comes from Lauren Lieberman with Barclays. Your line is open. Great. Thanks. Good morning. I had two questions. First was just the generally operating expenses in the quarter, both SG&A and R&D specifically were down quite a bit. I was just curious if you could comment on how sustainable those changes were, if it reflects maybe incentive compensation again or more tactical reductions, you know, given the gross margin pressure. Curious about that piece. The second thing, unrelated, was just on pharma. You know, given the capacity constraints that you've seen and demand outstripping supply, which is great, the only question is, you know, where is that demand going? You know, what's the risk that r ebuilding, if you call it relative market share, when you do get capacity up is a challenge. I mean, it, where is that business going and how confident can we be that that will come back when you get the capacity up? Thank you. Thank you, Lauren, for the question. The first piece, Glenn will take, and then take the follow-up. Good morning, Lauren. Relative to our R&D sales and administrative expenses, as I mentioned, we are favorable to plan and down from prior year, but that is not R&D. Actually, R&D is trending right on plan. By the way, of our roughly $2.1 billion of annual spend for R&D, S&A, about 30%, is R&D, and the residual is fairly equally split between sales, our commercial team, and then administrative. We are seeing actually more efficiencies in the commercial teams as they come together post-integration and the back office, so the administrative teams as well. That's really where we're seeing and are pushing more the productivity, not R&D. We are always looking for ways to more efficiently spend our R&D budget, but we sort of directionally wanna make sure that we continue to stay within the guidance we provided relative to our ongoing R&D spend. On the follow-up part of the question, the good thing about the pharma excipients business is that it's a very stable business, and it's predictable in a sense because you know when you're in a product or in a pharmaceutical that you stay in because everything else would basically require a change with the FDA. That means that our customer base is very stable. There's probably no big risk that if we increase, like, our capacity that we have too much capacity in place. We see, as I said, good and stable demand. Despite the capacity on our manufacturing side, we had some issues with seaweed harvesting, which goes into one of the products of our big customers, which is, I can give you details now in one-on-one. The harvesting now is going better because we have new fields in front of Norway, which we're discovering right now and using much to increase our manufacturing on this side. Just to give you a bit of, let's say, detail around the pharma business. There's certainly no danger that we overbuilt it. The next question comes from Ghansham Panjabi with Baird. Your line is open. Hi, good morning. This is actually Matthew Krueger sitting in for Ghansham. Sorry to belabor the point a little bit here, but can you talk about where we are at from a price cost perspective across both the legacy IFF businesses and then the legacy DuPont businesses? Maybe on a dollar basis, that would be helpful. And then what's the historical price cost catch-up period for the two legacy businesses? And is there any meaningful difference in catch-up period across your various segments or regions? Relative to inflation, we're seeing higher rates in legacy N&B than IFF, although we're seeing inflation across all businesses. Generally, we're sort of in mid single-digit range for legacy IFF and then low double digit relative to legacy N&B. Catch-up period generally three to six months. Certain businesses like H&B may have slightly larger percentage that are either an annual contract or a multi-year, so it might be slower. The next question comes from Christopher Parkinson with Mizuho. Your line is open. Great. Thank you very much. Just based on the growth outlook for certain pieces of the acquired N&B assets, are there any parallels which may require additional capacity in the coming years, just giving healthy outlooks? You know, the legacy owner used to speak about some recent expansions already essentially being sold out. Just trying to gauge where the portfolio stands. Thank you. Yeah. No, thank you for the question. You will see probably the biggest expansion on our side on capacity in the health and bioscience area, and particularly on the enzyme business, where we believe that our technology is really top-notch, and we see a huge demand from our customers as well. Most of the investments goes in into that area. We see some capacity increases, as we said, on the pharma business, but not to the same degree as on the IFF Health and Biosciences business. The rest is basically a business that's usually on Scent and on Nourish, which is partially legacy N&B as well, but more, let's say, maintained than this investment into new plants. Our final question today comes from Jonathan Feeney with Consumer Edge. Your line is open. Hi. Thanks very much for getting me in. Just a quick one. As far as the pricing process and your assessment of, you know, how easy that is to do the dialogue, is there any significant difference in the acquired N&B businesses and the legacy businesses that you're running into? Because I did notice, you know, that it seems like the lag is a little bit greater in the segments that are heavier on acquired revenue, but that there may be other explanations for that. So just curious about the general nature of the business. Is it tougher to take pricing there? Well, I think one thing we have to consider is the legacy N&B businesses just have a higher ramp, you know. The inflationary pressures are more significant in that side. Basically, it just requires, if you will, a bigger lift relative to the implementation from that standpoint. True. Absolutely. We have no further questions at this time. It is now my pleasure to hand the program back to Andreas Fibig for closing remarks. Yeah. Thank you very much for participation. I hope it helped to explain where we are. We are very pleased where we are in the integration process and certainly with the volume of performance we are doing as a company, which is good. Thank you very much and have a good day. This does conclude today's program. Thank you for your participation. You may disconnect at any time, and have a wonderful day.