Discounted Cash Flow Valuation Operating Scenario: Base

(Values in thousands, USD, except per-share data) Fiscal Year Ended December 31Operating Scenario 1Mid-Year Convention Y CAGR CAGRInclude Other Income Y 2013 2014 2015 ('13-'15) 2016 2017 2018 2019 2020 2021 ('16-'20)

Total Revenue 2,952,896.0 3,088,533.0 3,023,189.0 1.2% 3,159,232.5 3,285,601.8 3,400,597.9 3,502,615.8 3,590,181.2 3,661,984.8 2.7%% Growth NA 4.6% (2.1%) 4.5% 4.0% 3.5% 3.0% 2.5% 2.0%

Cost of Goods Sold 1,585,464.0 1,637,029.0 1,581,993.0 1,653,182.7 1,719,310.0 1,779,485.8 1,832,870.4 1,878,692.2 1,916,266.0Gross Profit 1,367,432.0 1,451,504.0 1,441,196.0 2.7% 1,506,049.8 1,566,291.8 1,621,112.0 1,669,745.4 1,711,489.0 1,745,718.8 2.7%

% Margin 46.3% 47.0% 47.7% 47.7% 47.7% 47.7% 47.7% 47.7% 47.7%Total Operating Expenses 767,866.0 769,829.0 763,252.0 797,598.3 829,502.3 858,534.9 884,290.9 906,398.2 924,526.1EBITDA 615,204.0 684,482.0 674,760.0 4.7% 711,610.7 740,075.1 765,977.8 788,957.1 808,681.0 824,854.7 2.7%

% Margin 20.8% 22.2% 22.3% 22.5% 22.5% 22.5% 22.5% 22.5% 22.5%Depreciation & Amortization 83,227.0 89,354.0 89,597.0 93,628.9 97,374.0 100,782.1 103,805.6 106,400.7 108,528.7EBIT 531,977.0 595,128.0 585,163.0 4.9% 617,981.8 642,701.1 665,195.7 685,151.5 702,280.3 716,325.9 2.7%

% Margin 18.0% 19.3% 19.4% 19.6% 19.6% 19.6% 19.6% 19.6% 19.6%Income Tax Expense 131,666.0 134,518.0 119,854.0 126,576.0 131,639.0 136,246.4 140,333.8 143,842.2 146,719.0EBIAT 400,311.0 460,610.0 465,309.0 7.8% 491,405.8 511,062.1 528,949.2 544,817.7 558,438.2 569,606.9 2.7%Plus: Depreciation & Amortization 83,227.0 89,354.0 89,597.0 93,628.9 97,374.0 100,782.1 103,805.6 106,400.7 108,528.7Less: Capital Expenditures (134,157.0) (143,182.0) (101,030.0) (137,130.0) (141,929.5) (146,187.4) (149,842.1) (152,839.0)Less: Inc./(Dec.) in Net Working Capital (29,633.7) (26,966.7) (23,923.3) (20,534.2) (16,838.0)Unlevered Free Cash Flow 349,381.0 406,782.0 453,876.0 14.0% 441,672.4 460,835.1 478,512.6 494,462.6 508,458.7 3.6%

WACC 8.9%Discount Period 0.5 1.5 2.5 3.5 4.5Discount Factor 0.96 0.88 0.81 0.74 0.68

Present Value of Free Cash Flow $423,239.6 $405,512.0 $386,655.0 $366,890.0 $346,441.7

Cumulative Present Value of FCF $1,928,738.4 Enterprise Value $10,007,211.6 Terminal Year Free Cash Flow (2017E) 508,458.7Less: Total Debt (1,491,157.0) WACC 8.9%

Terminal Value Less: Preferred Stock Terminal Value 12,372,819.8Terminal Year EBITDA (2017E) $824,854.7 Less: Noncontrolling Interest (4,060.0)Exit Multiple 15.0x Plus: Cash and Cash Equivalents 539,992.0 Implied Perpetuity Growth Rate 4.4%

Terminal Value $12,372,819.8Discount Factor 0.65 Implied Equity Value $9,051,986.6

Present Value of Terminal Value $8,078,473.2 Enterprise Value 10,007,211.6% of Enterprise Value 80.7% Fully Diluted Shares Outstanding 79,877.1 LTM 9/30/2016 EBITDA 742,877.0

Enterprise Value $10,007,211.6 Implied Share Price $113.32 Implied EV/EBITDA 13.5x

Implied EV/EBITDA

International Flavors & Fragrances, Inc. (NYSE: IFF)

Historical Period Projection Period

Enterprise Value Implied Equity Value and Share Price Implied Perpetuity Growth Rate

DCF Sensitivity Analysis Operating Scenario: Base

(Values in thousands, USD, except per-share data) Fiscal Year Ended December 31

14.0x 14.5x 15.0x 15.5x 16.0x 14.0x 14.5x 15.0x 15.5x 16.0x7.9% 9,867,929 10,149,923 10,431,917 10,713,911 10,995,906 7.9% 80.0% 80.6% 81.1% 81.6% 82.1%8.4% 9,665,614 9,941,164 10,216,714 10,492,265 10,767,815 8.4% 79.8% 80.4% 80.9% 81.4% 81.9%8.9% 9,468,647 9,737,929 $10,007,211.6 10,276,494 10,545,776 8.9% 79.6% 80.2% 80.7% 81.2% 81.7%8.4% 9,665,614 9,941,164 10,216,714 10,492,265 10,767,815 9.4% 79.4% 80.0% 80.5% 81.0% 81.5%7.9% 9,867,929 10,149,923 10,431,917 10,713,911 10,995,906 9.9% 79.2% 79.8% 80.4% 80.9% 81.4%

14.0x 14.5x 15.0x 15.5x 16.0x 14.0x 14.5x 15.0x 15.5x 16.0x7.9% 8,912,704 9,194,698 9,476,692 9,758,686 10,040,681 7.9% 111.58 115.11 118.64 122.17 125.708.4% 8,710,389 8,985,939 9,261,489 9,537,040 9,812,590 8.4% 109.05 112.50 115.95 119.40 122.858.9% 8,513,422 8,782,704 $9,051,986.6 9,321,269 9,590,551 8.9% 106.58 109.95 $113.32 116.70 120.079.4% 8,321,636 8,584,821 8,848,006 9,111,191 9,374,376 9.4% 104.18 107.48 110.77 114.07 117.369.9% 8,134,872 8,392,124 8,649,376 8,906,628 9,163,880 9.9% 101.84 105.06 108.28 111.50 114.72

14.0x 14.5x 15.0x 15.5x 16.0x 14.0x 14.5x 15.0x 15.5x 16.0x7.9% 3.2% 3.3% 3.5% 3.6% 3.7% 7.9% 13.3x 13.7x 14.0x 14.4x 14.8x8.4% 3.6% 3.8% 4.0% 4.1% 4.2% 8.4% 13.0x 13.4x 13.8x 14.1x 14.5x8.9% 4.1% 4.3% 4.4% 4.6% 4.7% 8.9% 12.7x 13.1x 13.5x 13.8x 14.2x8.4% 3.6% 3.8% 4.0% 4.1% 4.2% 9.4% 12.5x 12.8x 13.2x 13.6x 13.9x7.9% 3.2% 3.3% 3.5% 3.6% 3.7% 9.9% 12.2x 12.6x 12.9x 13.3x 13.6x

Implied Perpetuity Growth Rate Implied Enterprise Value / LTM EBITDAExit Multiple Exit Multiple

WAC

C

WAC

C

WAC

C

Enterprise Value PV of Terminal Value % of Enterprise ValueExit Multiple Exit Multiple

WAC

C

WAC

C

Implied Share PriceExit Multiple

WAC

C

Implied Equity ValueExit Multiple

International Flavors & Fragrances, Inc. (NYSE: IFF)

Discounted Cash Flow Valuation Operating Scenario: Upside

(Values in thousands, USD, except per-share data) Fiscal Year Ended December 31Operating Scenario 3Mid-Year Convention Y CAGR CAGRInclude Other Income Y 2013 2014 2015 ('13-'15) 2016 2017 2018 2019 2020 2021 ('16-'20)

Total Revenue 2,952,896.0 3,088,533.0 3,023,189.0 1.2% 3,174,348.5 3,317,194.1 3,449,881.9 3,570,627.8 3,677,746.6 3,769,690.3 3.2%% Growth NA 4.6% (2.1%) 5.0% 4.5% 4.0% 3.5% 3.0% 2.5%

Cost of Goods Sold 1,585,464.0 1,637,029.0 1,581,993.0 1,618,917.7 1,691,769.0 1,759,439.8 1,821,020.2 1,875,650.8 1,922,542.0Gross Profit 1,367,432.0 1,451,504.0 1,441,196.0 2.7% 1,555,430.7 1,625,425.1 1,690,442.1 1,749,607.6 1,802,095.8 1,847,148.2 3.2%

% Margin 46.3% 47.0% 47.7% 49.0% 49.0% 49.0% 49.0% 49.0% 49.0%Total Operating Expenses 767,866.0 769,829.0 763,252.0 761,843.6 796,126.6 827,971.7 856,950.7 882,659.2 904,725.7EBITDA 615,204.0 684,482.0 674,760.0 4.7% 809,458.9 845,884.5 879,719.9 910,510.1 937,825.4 961,271.0 3.2%

% Margin 20.8% 22.2% 22.3% 25.5% 25.5% 25.5% 25.5% 25.5% 25.5%Depreciation & Amortization 83,227.0 89,354.0 89,597.0 88,881.8 92,881.4 96,596.7 99,977.6 102,976.9 105,551.3EBIT 531,977.0 595,128.0 585,163.0 4.9% 720,577.1 753,003.1 783,123.2 810,532.5 834,848.5 855,719.7 3.2%

% Margin 18.0% 19.3% 19.4% 22.7% 22.7% 22.7% 22.7% 22.7% 22.7%Income Tax Expense 131,666.0 134,518.0 119,854.0 147,589.7 154,231.3 160,400.5 166,014.5 170,995.0 175,269.8EBIAT 400,311.0 460,610.0 465,309.0 7.8% 572,987.4 598,771.8 622,722.7 644,518.0 663,853.5 680,449.8 3.2%Plus: Depreciation & Amortization 83,227.0 89,354.0 89,597.0 88,881.8 92,881.4 96,596.7 99,977.6 102,976.9 105,551.3Less: Capital Expenditures (134,157.0) (143,182.0) (101,030.0) (132,687.8) (137,995.3) (142,825.1) (147,109.9) (150,787.6)Less: Inc./(Dec.) in Net Working Capital (34,695.8) (32,228.6) (29,328.0) (26,018.1) (22,332.2)Unlevered Free Cash Flow 349,381.0 406,782.0 453,876.0 14.0% 524,269.6 549,095.5 572,342.4 593,702.4 612,881.3 4.0%

WACC 8.9%Discount Period 0.5 1.5 2.5 3.5 4.5Discount Factor 0.96 0.88 0.81 0.74 0.68

Present Value of Free Cash Flow $502,389.7 $483,176.8 $462,472.8 $440,525.7 $417,590.8

Cumulative Present Value of FCF $2,306,155.9 Enterprise Value $11,720,665.6 Terminal Year Free Cash Flow (2017E) 612,881.3Less: Total Debt (1,491,157.0) WACC 8.9%

Terminal Value Less: Preferred Stock Terminal Value 14,419,065.2Terminal Year EBITDA (2017E) $961,271.0 Less: Noncontrolling Interest (4,060.0)Exit Multiple 15.0x Plus: Cash and Cash Equivalents 539,992.0 Implied Perpetuity Growth Rate 4.3%

Terminal Value $14,419,065.2Discount Factor 0.65 Implied Equity Value $10,765,440.6

Present Value of Terminal Value $9,414,509.7 Enterprise Value 11,720,665.6% of Enterprise Value 80.3% Fully Diluted Shares Outstanding 79,877.1 LTM 9/30/2016 EBITDA 742,877.0

Enterprise Value $11,720,665.6 Implied Share Price $134.78 Implied EV/EBITDA 15.8x

Implied EV/EBITDA

International Flavors & Fragrances, Inc. (NYSE: IFF)

Historical Period Projection Period

Enterprise Value Implied Equity Value and Share Price Implied Perpetuity Growth Rate

DCF Sensitivity Analysis Operating Scenario: Upside

(Values in thousands, USD, except per-share data) Fiscal Year Ended December 31

14.0x 14.5x 15.0x 15.5x 16.0x 14.0x 14.5x 15.0x 15.5x 16.0x7.9% 11,559,827 11,888,458 12,217,089 12,545,721 12,874,352 7.9% 79.6% 80.2% 80.7% 81.2% 81.7%8.4% 11,323,305 11,644,427 11,965,549 12,286,670 12,607,792 8.4% 79.4% 80.0% 80.5% 81.0% 81.5%8.9% 11,093,032 11,406,849 $11,720,665.6 12,034,483 12,348,300 8.9% 79.2% 79.8% 80.3% 80.8% 81.3%8.4% 11,323,305 11,644,427 11,965,549 12,286,670 12,607,792 9.4% 79.0% 79.6% 80.1% 80.7% 81.1%7.9% 11,559,827 11,888,458 12,217,089 12,545,721 12,874,352 9.9% 78.8% 79.4% 79.9% 80.5% 81.0%

14.0x 14.5x 15.0x 15.5x 16.0x 14.0x 14.5x 15.0x 15.5x 16.0x7.9% 10,604,602 10,933,233 11,261,864 11,590,496 11,919,127 7.9% 132.76 136.88 140.99 145.10 149.228.4% 10,368,080 10,689,202 11,010,324 11,331,445 11,652,567 8.4% 129.80 133.82 137.84 141.86 145.888.9% 10,137,807 10,451,624 $10,765,440.6 11,079,258 11,393,075 8.9% 126.92 130.85 $134.78 138.70 142.639.4% 9,913,586 10,220,297 10,527,008 10,833,719 11,140,430 9.4% 124.11 127.95 131.79 135.63 139.479.9% 9,695,230 9,995,028 10,294,825 10,594,622 10,894,419 9.9% 121.38 125.13 128.88 132.64 136.39

14.0x 14.5x 15.0x 15.5x 16.0x 14.0x 14.5x 15.0x 15.5x 16.0x7.9% 3.0% 3.2% 3.3% 3.5% 3.6% 7.9% 15.6x 16.0x 16.4x 16.9x 17.3x8.4% 3.5% 3.7% 3.8% 3.9% 4.1% 8.4% 15.2x 15.7x 16.1x 16.5x 17.0x8.9% 4.0% 4.1% 4.3% 4.4% 4.6% 8.9% 14.9x 15.4x 15.8x 16.2x 16.6x8.4% 3.5% 3.7% 3.8% 3.9% 4.1% 9.4% 14.6x 15.0x 15.5x 15.9x 16.3x7.9% 3.0% 3.2% 3.3% 3.5% 3.6% 9.9% 14.3x 14.7x 15.1x 15.5x 16.0x

Implied Perpetuity Growth Rate Implied Enterprise Value / LTM EBITDAExit Multiple Exit Multiple

WAC

C

WAC

C

WAC

C

Enterprise Value PV of Terminal Value % of Enterprise ValueExit Multiple Exit Multiple

WAC

C

WAC

C

Implied Share PriceExit Multiple

WAC

C

Implied Equity ValueExit Multiple

International Flavors & Fragrances, Inc. (NYSE: IFF)

Discounted Cash Flow Valuation Operating Scenario: Downside 1

(Values in thousands, USD, except per-share data) Fiscal Year Ended December 31Operating Scenario 4Mid-Year Convention Y CAGR CAGRInclude Other Income N 2013 2014 2015 ('13-'15) 2016 2017 2018 2019 2020 2021 ('16-'20)

Total Revenue 2,952,896.0 3,088,533.0 3,023,189.0 1.2% 3,144,116.6 3,262,020.9 3,376,191.7 3,485,917.9 3,590,495.4 3,689,234.1 3.1%% Growth NA 4.6% (2.1%) 4.0% 3.8% 3.5% 3.3% 3.0% 2.8%

Cost of Goods Sold 1,585,464.0 1,637,029.0 1,581,993.0 1,697,822.9 1,761,491.3 1,823,143.5 1,882,395.7 1,938,867.5 1,992,186.4Gross Profit 1,367,432.0 1,451,504.0 1,441,196.0 2.7% 1,446,293.6 1,500,529.6 1,553,048.2 1,603,522.2 1,651,627.9 1,697,047.7 3.1%

% Margin 46.3% 47.0% 47.7% 46.0% 46.0% 46.0% 46.0% 46.0% 46.0%Total Operating Expenses 767,866.0 769,829.0 763,252.0 801,749.7 831,815.3 860,928.9 888,909.1 915,576.3 940,754.7EBITDA 599,566.0 681,675.0 677,944.0 6.3% 644,543.9 668,714.3 692,119.3 714,613.2 736,051.6 756,293.0 3.1%

% Margin 20.3% 22.1% 22.4% 20.5% 20.5% 20.5% 20.5% 20.5% 20.5%Depreciation & Amortization 83,227.0 89,354.0 89,597.0 100,611.7 104,384.7 108,038.1 111,549.4 114,895.9 118,055.5EBIT 516,339.0 592,321.0 588,347.0 6.7% 543,932.2 564,329.6 584,081.2 603,063.8 621,155.7 638,237.5 3.1%

% Margin 17.5% 19.2% 19.5% 17.3% 17.3% 17.3% 17.3% 17.3% 17.3%Income Tax Expense 131,666.0 134,518.0 119,854.0 110,806.1 114,961.3 118,985.0 122,852.0 126,537.6 130,017.3EBIAT 384,673.0 457,803.0 468,493.0 10.4% 433,126.0 449,368.3 465,096.2 480,211.8 494,618.1 508,220.1 3.1%Plus: Depreciation & Amortization 83,227.0 89,354.0 89,597.0 100,611.7 104,384.7 108,038.1 111,549.4 114,895.9 118,055.5Less: Capital Expenditures (134,157.0) (143,182.0) (101,030.0) (146,790.9) (151,928.6) (156,866.3) (161,572.3) (166,015.5)Less: Inc./(Dec.) in Net Working Capital (25,284.8) (24,484.1) (23,531.0) (22,426.9) (21,174.7)Unlevered Free Cash Flow 333,743.0 403,975.0 457,060.0 17.0% 381,677.2 396,721.5 411,363.8 425,514.8 439,085.4 3.6%

WACC 8.9%Discount Period 0.5 1.5 2.5 3.5 4.5Discount Factor 0.96 0.88 0.81 0.74 0.68

Present Value of Free Cash Flow $365,748.2 $349,095.3 $332,396.5 $315,730.9 $299,173.8

Cumulative Present Value of FCF $1,662,144.7 Enterprise Value $9,069,137.6 Terminal Year Free Cash Flow (2017E) 439,085.4Less: Total Debt (1,491,157.0) WACC 8.9%

Terminal Value Less: Preferred Stock Terminal Value 11,344,394.7Terminal Year EBITDA (2017E) $756,293.0 Less: Noncontrolling Interest (4,060.0)Exit Multiple 15.0x Plus: Cash and Cash Equivalents 539,992.0 Implied Perpetuity Growth Rate 4.7%

Terminal Value $11,344,394.7Discount Factor 0.65 Implied Equity Value $8,113,912.6

Present Value of Terminal Value $7,406,992.9 Enterprise Value 9,069,137.6% of Enterprise Value 81.7% Fully Diluted Shares Outstanding 79,877.1 LTM 9/30/2016 EBITDA 748,546.0

Enterprise Value $9,069,137.6 Implied Share Price $101.58 Implied EV/EBITDA 12.1x

Implied EV/EBITDA

International Flavors & Fragrances, Inc. (NYSE: IFF)

Historical Period Projection Period

Enterprise Value Implied Equity Value and Share Price Implied Perpetuity Growth Rate

DCF Sensitivity Analysis Operating Scenario: Downside 1

(Values in thousands, USD, except per-share data) Fiscal Year Ended December 31

14.0x 14.5x 15.0x 15.5x 16.0x 14.0x 14.5x 15.0x 15.5x 16.0x7.9% 8,939,035 9,197,590 9,456,145 9,714,700 9,973,255 7.9% 81.0% 81.5% 82.0% 82.5% 83.0%8.4% 8,754,746 9,007,393 9,260,040 9,512,687 9,765,333 8.4% 80.8% 81.3% 81.9% 82.3% 82.8%8.9% 8,575,338 8,822,238 $9,069,137.6 9,316,037 9,562,937 8.9% 80.6% 81.2% 81.7% 82.2% 82.6%8.4% 8,754,746 9,007,393 9,260,040 9,512,687 9,765,333 9.4% 80.4% 81.0% 81.5% 82.0% 82.4%7.9% 8,939,035 9,197,590 9,456,145 9,714,700 9,973,255 9.9% 80.2% 80.8% 81.3% 81.8% 82.3%

14.0x 14.5x 15.0x 15.5x 16.0x 14.0x 14.5x 15.0x 15.5x 16.0x7.9% 7,983,810 8,242,365 8,500,920 8,759,475 9,018,030 7.9% 99.95 103.19 106.43 109.66 112.908.4% 7,799,521 8,052,168 8,304,815 8,557,462 8,810,108 8.4% 97.64 100.81 103.97 107.13 110.308.9% 7,620,113 7,867,013 $8,113,912.6 8,360,812 8,607,712 8.9% 95.40 98.49 $101.58 104.67 107.769.4% 7,445,433 7,686,742 7,928,051 8,169,360 8,410,669 9.4% 93.21 96.23 99.25 102.27 105.309.9% 7,275,334 7,511,203 7,747,073 7,982,942 8,218,811 9.9% 91.08 94.03 96.99 99.94 102.89

14.0x 14.5x 15.0x 15.5x 16.0x 14.0x 14.5x 15.0x 15.5x 16.0x7.9% 3.4% 3.6% 3.7% 3.9% 4.0% 7.9% 11.9x 12.3x 12.6x 13.0x 13.3x8.4% 3.9% 4.1% 4.2% 4.3% 4.5% 8.4% 11.7x 12.0x 12.4x 12.7x 13.0x8.9% 4.4% 4.5% 4.7% 4.8% 4.9% 8.9% 11.5x 11.8x 12.1x 12.4x 12.8x8.4% 3.9% 4.1% 4.2% 4.3% 4.5% 9.4% 11.2x 11.5x 11.9x 12.2x 12.5x7.9% 3.4% 3.6% 3.7% 3.9% 4.0% 9.9% 11.0x 11.3x 11.6x 11.9x 12.3x

Implied Perpetuity Growth Rate Implied Enterprise Value / LTM EBITDAExit Multiple Exit Multiple

WAC

C

WAC

C

WAC

C

Enterprise Value PV of Terminal Value % of Enterprise ValueExit Multiple Exit Multiple

WAC

C

WAC

C

Implied Share PriceExit Multiple

WAC

C

Implied Equity ValueExit Multiple

International Flavors & Fragrances, Inc. (NYSE: IFF)

Discounted Cash Flow Valuation Operating Scenario: Downside 2

(Values in thousands, USD, except per-share data) Fiscal Year Ended December 31Operating Scenario 5Mid-Year Convention Y CAGR CAGRInclude Other Income N 2013 2014 2015 ('13-'15) 2016 2017 2018 2019 2020 2021 ('16-'20)

Total Revenue 2,952,896.0 3,088,533.0 3,023,189.0 1.2% 3,129,000.6 3,230,693.1 3,327,613.9 3,419,123.3 3,504,601.4 3,583,454.9 2.6%% Growth NA 4.6% (2.1%) 3.5% 3.3% 3.0% 2.8% 2.5% 2.3%

Cost of Goods Sold 1,585,464.0 1,637,029.0 1,581,993.0 1,720,950.3 1,776,881.2 1,830,187.7 1,880,517.8 1,927,530.8 1,970,900.2Gross Profit 1,367,432.0 1,451,504.0 1,441,196.0 2.7% 1,408,050.3 1,453,811.9 1,497,426.3 1,538,605.5 1,577,070.6 1,612,554.7 2.6%

% Margin 46.3% 47.0% 47.7% 45.0% 45.0% 45.0% 45.0% 45.0% 45.0%Total Operating Expenses 767,866.0 769,829.0 763,252.0 813,540.2 839,980.2 865,179.6 888,972.1 911,196.4 931,698.3EBITDA 599,566.0 681,675.0 677,944.0 6.3% 594,510.1 613,831.7 632,246.6 649,633.4 665,874.3 680,856.4 2.6%

% Margin 20.3% 22.1% 22.4% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0%Depreciation & Amortization 83,227.0 89,354.0 89,597.0 103,257.0 106,612.9 109,811.3 112,831.1 115,651.8 118,254.0EBIT 516,339.0 592,321.0 588,347.0 6.7% 491,253.1 507,218.8 522,435.4 536,802.4 550,222.4 562,602.4 2.6%

% Margin 17.5% 19.2% 19.5% 15.7% 15.7% 15.7% 15.7% 15.7% 15.7%Income Tax Expense 131,666.0 134,518.0 119,854.0 100,074.7 103,327.1 106,426.9 109,353.7 112,087.5 114,609.5EBIAT 384,673.0 457,803.0 468,493.0 10.4% 391,178.4 403,891.7 416,008.4 427,448.7 438,134.9 447,992.9 2.6%Plus: Depreciation & Amortization 83,227.0 89,354.0 89,597.0 103,257.0 106,612.9 109,811.3 112,831.1 115,651.8 118,254.0Less: Capital Expenditures (134,157.0) (143,182.0) (101,030.0) (148,611.9) (153,070.2) (157,279.7) (161,211.7) (164,838.9)Less: Inc./(Dec.) in Net Working Capital (21,249.6) (20,252.5) (19,121.7) (17,861.4) (16,477.1)Unlevered Free Cash Flow 333,743.0 403,975.0 457,060.0 17.0% 340,643.1 352,497.0 363,878.4 374,713.7 384,930.9 3.1%

WACC 8.9%Discount Period 0.5 1.5 2.5 3.5 4.5Discount Factor 0.96 0.88 0.81 0.74 0.68

Present Value of Free Cash Flow $326,426.7 $310,179.9 $294,026.5 $278,036.6 $262,275.2

Cumulative Present Value of FCF $1,470,945.0 Enterprise Value $8,139,126.4 Terminal Year Free Cash Flow (2017E) 384,930.9Less: Total Debt (1,491,157.0) WACC 8.9%

Terminal Value Less: Preferred Stock Terminal Value 10,212,846.5Terminal Year EBITDA (2017E) $680,856.4 Less: Noncontrolling Interest (4,060.0)Exit Multiple 15.0x Plus: Cash and Cash Equivalents 539,992.0 Implied Perpetuity Growth Rate 4.8%

Terminal Value $10,212,846.5Discount Factor 0.65 Implied Equity Value $7,183,901.4

Present Value of Terminal Value $6,668,181.4 Enterprise Value 8,139,126.4% of Enterprise Value 81.9% Fully Diluted Shares Outstanding 79,877.1 LTM 9/30/2016 EBITDA 748,546.0

Enterprise Value $8,139,126.4 Implied Share Price $89.94 Implied EV/EBITDA 10.9x

Implied EV/EBITDA

International Flavors & Fragrances, Inc. (NYSE: IFF)

Historical Period Projection Period

Enterprise Value Implied Equity Value and Share Price Implied Perpetuity Growth Rate

DCF Sensitivity Analysis Operating Scenario: Downside 2

(Values in thousands, USD, except per-share data) Fiscal Year Ended December 31

14.0x 14.5x 15.0x 15.5x 16.0x 14.0x 14.5x 15.0x 15.5x 16.0x7.9% 8,021,307 8,254,072 8,486,837 8,719,603 8,952,368 7.9% 81.3% 81.8% 82.3% 82.8% 83.2%8.4% 7,855,751 8,083,197 8,310,643 8,538,090 8,765,536 8.4% 81.1% 81.6% 82.1% 82.6% 83.0%8.9% 7,694,581 7,916,854 $8,139,126.4 8,361,399 8,583,672 8.9% 80.9% 81.4% 81.9% 82.4% 82.9%8.4% 7,855,751 8,083,197 8,310,643 8,538,090 8,765,536 9.4% 80.7% 81.2% 81.7% 82.2% 82.7%7.9% 8,021,307 8,254,072 8,486,837 8,719,603 8,952,368 9.9% 80.5% 81.1% 81.6% 82.1% 82.5%

14.0x 14.5x 15.0x 15.5x 16.0x 14.0x 14.5x 15.0x 15.5x 16.0x7.9% 7,066,082 7,298,847 7,531,612 7,764,378 7,997,143 7.9% 88.46 91.38 94.29 97.20 100.128.4% 6,900,526 7,127,972 7,355,418 7,582,865 7,810,311 8.4% 86.39 89.24 92.08 94.93 97.788.9% 6,739,356 6,961,629 $7,183,901.4 7,406,174 7,628,447 8.9% 84.37 87.15 $89.94 92.72 95.509.4% 6,582,436 6,799,675 7,016,915 7,234,154 7,451,394 9.4% 82.41 85.13 87.85 90.57 93.299.9% 6,429,633 6,641,976 6,854,318 7,066,661 7,279,003 9.9% 80.49 83.15 85.81 88.47 91.13

14.0x 14.5x 15.0x 15.5x 16.0x 14.0x 14.5x 15.0x 15.5x 16.0x7.9% 3.6% 3.7% 3.8% 4.0% 4.1% 7.9% 10.7x 11.0x 11.3x 11.6x 12.0x8.4% 4.0% 4.2% 4.3% 4.4% 4.6% 8.4% 10.5x 10.8x 11.1x 11.4x 11.7x8.9% 4.5% 4.6% 4.8% 4.9% 5.0% 8.9% 10.3x 10.6x 10.9x 11.2x 11.5x8.4% 4.0% 4.2% 4.3% 4.4% 4.6% 9.4% 10.1x 10.4x 10.7x 10.9x 11.2x7.9% 3.6% 3.7% 3.8% 4.0% 4.1% 9.9% 9.9x 10.1x 10.4x 10.7x 11.0x

Implied Perpetuity Growth Rate Implied Enterprise Value / LTM EBITDAExit Multiple Exit Multiple

WAC

C

WAC

C

WAC

C

Enterprise Value PV of Terminal Value % of Enterprise ValueExit Multiple Exit Multiple

WAC

C

WAC

C

Implied Share PriceExit Multiple

WAC

C

Implied Equity ValueExit Multiple

International Flavors & Fragrances, Inc. (NYSE: IFF)

Discounted Cash Flow Valuation(Values in thousands, USD, except per-share data) Fiscal Year Ended December 31Working Capital Summary

2013 2014 2015 2016 2017 2018 2019 2020 2021Total Revenue $2,952,896.0 $3,088,533.0 $3,023,189.0 $3,159,232.5 $3,285,601.8 $3,400,597.9 $3,502,615.8 $3,590,181.2 $3,661,984.8Cost of Goods Sold 1,585,464.0 1,637,029.0 1,581,993.0 1,653,182.7 1,719,310.0 1,779,485.8 1,832,870.4 1,878,692.2 1,916,266.0

Current AssetsAccounts Receivable 524,493.0 493,768.0 537,896.0 562,101.3 584,585.4 605,045.9 623,197.2 638,777.2 651,552.7Inventories 533,806.0 568,729.0 589,019.0 615,524.9 640,145.8 662,551.0 682,427.5 699,488.2 713,477.9Prepaid Expenses and Other 148,910.0 141,248.0 146,981.0 153,595.1 159,739.0 165,329.8 170,289.7 174,547.0 178,037.9

Total Current Assets $1,207,209.0 $1,203,745.0 $1,273,896.0 $1,331,221.3 $1,384,470.2 $1,432,926.6 $1,475,914.4 $1,512,812.3 $1,543,068.5

Current LiabilitiesAccounts Payable 226,733.0 216,038.0 302,473.0 316,084.3 328,727.7 340,233.1 350,440.1 359,201.1 366,385.1Accrued LiabilitiesOther Current Liabilities 301,744.0 256,712.0 262,482.0 274,293.7 285,265.4 295,249.7 304,107.2 311,709.9 317,944.1

Total Current Liabilities $528,477.0 $472,750.0 $564,955.0 $590,378.0 $613,993.1 $635,482.9 $654,547.3 $670,911.0 $684,329.2

Net Working Capital $678,732.0 $730,995.0 $708,941.0 $740,843.3 $770,477.1 $797,443.8 $821,367.1 $841,901.3 $858,739.3% Total Revenue 23.0% 23.7% 23.5% 23.5% 23.5% 23.5% 23.5% 23.5% 23.5%

(Increase)/Decrease in NWC ($52,263.0) $22,054.0 ($31,902.3) ($29,633.7) ($26,966.7) ($23,923.3) ($20,534.2) ($16,838.0)

AssumptionsCurrent AssetsDays Sales Outstanding 64.8 58.4 64.9 64.9 64.9 64.9 64.9 64.9 64.9Days Inventory Held 122.9 126.8 135.9 135.9 135.9 135.9 135.9 135.9 135.9Prepaids and Other CA (% of Total Revenue) 5.0% 4.6% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9%

Current LiabilitiesDays Payable Outstanding 52.2 48.2 69.8 69.8 69.8 69.8 69.8 69.8 69.8Accrued Liabilities (% of Total Revenue)Other Current Liabilities (% of Total Revenue) 10.2% 8.3% 8.7% 8.7% 8.7% 8.7% 8.7% 8.7% 8.7%

International Flavors & Fragrances, Inc. (NYSE: IFF)

Historical Period Projection Period

Discounted Cash Flow Valuation(Values in thousands, USD, except per-share data) Fiscal Year Ended December 31Assumptions Page 1

Scenario 1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 102013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Income Statement AssumptionsRevenue (% Growth) NA 4.6% (2.1%) 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5%

Base 1 NA 4.6% (2.1%) 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5%Management 2Upside 3 NA 4.6% (2.1%) 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0%Downside 1 4 NA 4.6% (2.1%) 4.0% 3.8% 3.5% 3.3% 3.0% 2.8% 2.5%Downside 2 5 NA 4.6% (2.1%) 3.5% 3.3% 3.0% 2.8% 2.5% 2.3% 2.0%

COGS (% Revenue) 53.7% 53.0% 52.3% 52.3% 52.3% 52.3% 52.3% 52.3% 52.3% 52.3%Base 1 53.7% 53.0% 52.3% 52.3% 52.3% 52.3% 52.3% 52.3% 52.3% 52.3%Management 2Upside 3 53.7% 53.0% 52.3% 51.0% 51.0% 51.0% 51.0% 51.0% 51.0% 51.0%Downside 1 4 53.7% 53.0% 52.3% 54.0% 54.0% 54.0% 54.0% 54.0% 54.0% 54.0%Downside 2 5 53.7% 53.0% 52.3% 55.0% 55.0% 55.0% 55.0% 55.0% 55.0% 55.0%

Operating Expenses (% Revenue) 26.0% 24.9% 25.2% 25.2% 25.2% 25.2% 25.2% 25.2% 25.2% 25.2%Base 1 26.0% 24.9% 25.2% 25.2% 25.2% 25.2% 25.2% 25.2% 25.2% 25.2%Management 2Upside 3 26.0% 24.9% 25.2% 24.0% 24.0% 24.0% 24.0% 24.0% 24.0% 24.0%Downside 1 4 26.0% 24.9% 25.2% 25.5% 25.5% 25.5% 25.5% 25.5% 25.5% 25.5%Downside 2 5 26.0% 24.9% 25.2% 26.0% 26.0% 26.0% 26.0% 26.0% 26.0% 26.0%

D&A (% Revenue) 2.8% 2.9% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%Base 1 2.8% 2.9% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%Management 2Upside 3 2.8% 2.9% 3.0% 2.8% 2.8% 2.8% 2.8% 2.8% 2.8% 2.8%Downside 1 4 2.8% 2.9% 3.0% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2%Downside 2 5 2.8% 2.9% 3.0% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3%

International Flavors & Fragrances, Inc. (NYSE: IFF)

Historical Period Projection Period

Discounted Cash Flow Valuation(Values in thousands, USD, except per-share data) Fiscal Year Ended December 31Assumptions Page 2

Scenario 1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 102013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Cash Flow Statement AssumptionsCapex (% Revenue) 4.5% 4.6% 3.3% 4.2% 4.2% 4.2% 4.2% 4.2% 4.2% 4.2%

Base 1 4.5% 4.6% 3.3% 4.2% 4.2% 4.2% 4.2% 4.2% 4.2% 4.2%Management 2Upside 3 4.5% 4.6% 3.3% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%Downside 1 4 4.5% 4.6% 3.3% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5%Downside 2 5 4.5% 4.6% 3.3% 4.6% 4.6% 4.6% 4.6% 4.6% 4.6% 4.6%

Balance Sheet Assumptions: Current AssetsDays Sales Outstanding (DSO) 64.8 58.4 64.9 64.9 64.9 64.9 64.9 64.9 64.9 64.9

Base 1 64.8 58.4 64.9 64.9 64.9 64.9 64.9 64.9 64.9 64.9Management 2Upside 3 64.8 58.4 64.9 65.0 65.0 65.0 65.0 65.0 65.0 65.0Downside 1 4 64.8 58.4 64.9 65.0 65.0 65.0 65.0 65.0 65.0 65.0Downside 2 5 64.8 58.4 64.9 65.0 65.0 65.0 65.0 65.0 65.0 65.0

Days Inventory Held (DIH) 122.9 126.8 135.9 135.9 135.9 135.9 135.9 135.9 135.9 135.9Base 1 122.9 126.8 135.9 135.9 135.9 135.9 135.9 135.9 135.9 135.9Management 2Upside 3 122.9 126.8 135.9 136.0 136.0 136.0 136.0 136.0 136.0 136.0Downside 1 4 122.9 126.8 135.9 125.0 125.0 125.0 125.0 125.0 125.0 125.0Downside 2 5 122.9 126.8 135.9 125.0 125.0 125.0 125.0 125.0 125.0 125.0

Prepaid & Other CA (% Revenue) 5.0% 4.6% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9%Base 1 5.0% 4.6% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9%Management 2Upside 3 5.0% 4.6% 4.9% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%Downside 1 4 5.0% 4.6% 4.9% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5%Downside 2 5 5.0% 4.6% 4.9% 4.3% 4.3% 4.3% 4.3% 4.3% 4.3% 4.3%

Historical Period Projection Period

International Flavors & Fragrances, Inc. (NYSE: IFF)

Discounted Cash Flow Valuation(Values in thousands, USD, except per-share data) Fiscal Year Ended December 31Assumptions Page 3

Scenario 1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 102013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Balance Sheet Assumptions: Current LiabilitiesDays Payable Outstanding (DPO) 52.2 48.2 69.8 69.8 69.8 69.8 69.8 69.8 69.8 69.8

Base 1 52.2 48.2 69.8 69.8 69.8 69.8 69.8 69.8 69.8 69.8Management 2Upside 3 52.2 48.2 69.8 66.0 66.0 66.0 66.0 66.0 66.0 66.0Downside 1 4 52.2 48.2 69.8 70.0 70.0 70.0 70.0 70.0 70.0 70.0Downside 2 5 52.2 48.2 69.8 70.0 70.0 70.0 70.0 70.0 70.0 70.0

Accrued Liabilities (% Revenue) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%Base 1Management 2Upside 3Downside 1 4Downside 2 5

Other Current Liabilities (% Revenue) 10.2% 8.3% 8.7% 8.7% 8.7% 8.7% 8.7% 8.7% 8.7% 8.7%Base 1 10.2% 8.3% 8.7% 8.7% 8.7% 8.7% 8.7% 8.7% 8.7% 8.7%Management 2Upside 3 10.2% 8.3% 8.7% 8.3% 8.3% 8.3% 8.3% 8.3% 8.3% 8.3%Downside 1 4 10.2% 8.3% 8.7% 9.0% 9.0% 9.0% 9.0% 9.0% 9.0% 9.0%Downside 2 5 10.2% 8.3% 8.7% 9.5% 9.5% 9.5% 9.5% 9.5% 9.5% 9.5%

Other Income (% Revenue) 0.53% 0.09% (0.11%) 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%Base 1 0.53% 0.09% (0.11%) 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%Management 2Upside 3 0.53% 0.09% (0.11%) 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%Downside 1 4 0.53% 0.09% (0.11%) 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05%Downside 2 5 0.53% 0.09% (0.11%) 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%

Historical Period Projection Period

International Flavors & Fragrances, Inc. (NYSE: IFF)

Discounted Cash Flow Valuation(Values in thousands, USD, except per-share data) Fiscal Year Ended December 31Consolidated Statements of Income

CAGR CAGR2013 A 2014 A 2015 A ('13-'15) 2016 E 2017 E 2018 E 2019 E 2020 E ('16-'20)

RevenueNet Sales 2,952,896.0 3,088,533.0 3,023,189.0 1.2% 3,159,232.5 3,285,601.8 3,400,597.9 3,502,615.8 3,590,181.2 3.2%

% Growth NA 4.6% (2.1%) 4.5% 4.0% 3.5% 3.0% 2.5%Cost of Goods Sold 1,585,464.0 1,637,029.0 1,581,993.0 (0.1%) 1,652,278.6 1,718,369.7 1,778,512.7 1,831,868.1 1,877,664.8 3.2%

% Net Sales 53.7% 53.0% 52.3% 52.3% 52.3% 52.3% 52.3% 52.3%Gross Profit 1,367,432.0 1,451,504.0 1,441,196.0 2.7% 1,506,953.9 1,567,232.1 1,622,085.2 1,670,747.7 1,712,516.4 3.2%

Gross Profit Margin (%) 46.3% 47.0% 47.7% 47.7% 47.7% 47.7% 47.7% 47.7%Operating Expenses

Selling, General & Administrative 505,877.0 514,891.0 509,557.0 0.4% 537,069.5 558,552.3 578,101.6 595,444.7 610,330.8 3.2%% Net Sales 17.1% 16.7% 16.9% 17.0% 17.0% 17.0% 17.0% 17.0%

Research & Development 259,838.0 253,640.0 246,101.0 (2.7%) 255,897.8 266,133.7 275,448.4 283,711.9 290,804.7 3.2%% Net Sales 8.8% 8.2% 8.1% 8.1% 8.1% 8.1% 8.1% 8.1%

Restructuring & Other, Net 2,151.0 1,298.0 7,594.0 87.9% 631.8 657.1 680.1 700.5 718.0 3.2%% Net Sales 0.07% 0.04% 0.25% 0.02% 0.02% 0.02% 0.02% 0.02%

Total Operating Expenses 767,866.0 769,829.0 763,252.0 (0.3%) 793,599.2 825,343.2 854,230.2 879,857.1 901,853.5 3.2%% Net Sales 26.0% 24.9% 25.2% 25.1% 25.1% 25.1% 25.1% 25.1%

Other (Expense) Income, Net 15,638.0 2,807.0 (3,184.0) 3,159.2 3,285.6 3,400.6 3,502.6 3,590.2% Net Sales 0.53% 0.09% (0.11%) 0.10% 0.10% 0.10% 0.10% 0.10%

EBITDA 615,204.0 684,482.0 674,760.0 4.7% 716,513.9 745,174.5 771,255.6 794,393.3 814,253.1 3.2%EBITDA Margin (%) 20.8% 22.2% 22.3% 22.7% 22.7% 22.7% 22.7% 22.7%

Depreciation & Amortization 83,227.0 89,354.0 89,597.0 3.8% 0.0 0.0 0.0 0.0 0.0 #DIV/0!% Net Sales 2.8% 2.9% 3.0% 0.0% 0.0% 0.0% 0.0% 0.0%

EBIT 531,977.0 595,128.0 585,163.0 4.9% 716,513.9 745,174.5 771,255.6 794,393.3 814,253.1 3.2%EBIT Margin (%) 18.0% 19.3% 19.4% 22.7% 22.7% 22.7% 22.7% 22.7%

Interest 46,767.0 46,067.0 46,062.0 (0.8%) 0.0 0.0 0.0 0.0 0.0 #DIV/0!% Net Sales 1.6% 1.5% 1.5% 0.0% 0.0% 0.0% 0.0% 0.0%

EBT 485,210.0 549,061.0 539,101.0 5.4% 716,513.9 745,174.5 771,255.6 794,393.3 814,253.1 3.2%EBT Margin (%) 16.4% 17.8% 17.8% 22.7% 22.7% 22.7% 22.7% 22.7%

Income Tax Expense 131,666.0 134,518.0 119,854.0 (4.6%) 176,424.2 183,481.1 189,903.0 195,600.1 200,490.1 3.2%Tax Rate (%) 27.1% 24.5% 22.2% 24.6% 24.6% 24.6% 24.6% 24.6%

Net Income 353,544.0 414,543.0 419,247.0 8.9% 540,089.8 561,693.3 581,352.6 598,793.2 613,763.0 3.2%

International Flavors & Fragrances, Inc. (NYSE: IFF)

Historical Period Projection Period

Discounted Cash Flow Valuation(Values in thousands, USD, except per-share data) Fiscal Year Ended December 31Consolidated Statements of Income

CAGR CAGR2013 A 2014 A 2015 A ('13-'15) 2016 E 2017 E 2018 E 2019 E 2020 E ('16-'20)

Net Income 353,544.0 414,543.0 419,247.0 8.9% 540,089.8 561,693.3 581,352.6 598,793.2 613,763.0 3.2%

Other Comprehensive IncomeForeign Currency Translation Adj. (10,556.0) (69,064.0) (124,156.0)(Loss) Gain on Derivative Hedges (3,794.0) 16,383.0 (2,970.0)Pension & Postretirement Liability Adj. 25,264.0 (95,038.0) 54,117.0

Total Other CI 10,914.0 (147,719.0) (73,009.0) (78,980.8) (82,140.0) (85,014.9) (87,565.4) (89,754.5)Other CI as a % Net Sales 0.37% (4.78%) (2.41%) (2.50%) (2.50%) (2.50%) (2.50%) (2.50%)

Comprehensive Income 364,458.0 266,824.0 346,238.0 (2.5%) 461,108.9 479,553.3 496,337.7 511,227.8 524,008.5 3.2%

Earnings Per ShareBasic 4.32 5.09 5.19 9.6% 6.79 7.13 7.45 7.75 8.03 4.3%Diluted 4.29 5.06 5.19 10.0% 6.76 7.10 7.43 7.73 8.00 4.3%

*Avg. Common Shares OutstandingBasic 81,838.9 81,442.6 80,779.8 79,591.8 78,795.9 78,008.0 77,227.9 76,455.6Diluted 82,411.2 81,925.5 80,779.8 79,877.1 79,081.2 78,293.2 77,513.1 76,740.8

Shares Repurchased 396.3 662.9 1,187.9 795.9 788.0 780.1 772.3Percentage of Shares Repurchased 0.48% 0.81% 1.47% 1.00% 1.00% 1.00% 1.00%

For the Historical Period (2013A-2015A), the Average Commmon Shares Outstanding are presented, back-calculated from the EPS numbersprovided in the most recent 10-K (IFF Form 10-K, 03/01/16, pg. 62; pg 71 in the AR). This is due to the fact that as a result of changes in"Purchased Restricted Stock," EPS differs slightly from that calculated by the two-class method.

However, for possible future needs, the Avg. Common Shares Outstanding are presented below should they be relevant later.*Avg. Common Shares Outstanding

Basic 81,322.0 80,936.0 80,449.0Diluted 81,930.0 81,494.0 80,891.0

Shares Repurchased 386.0 487.0Percent of Shares Repurchased 0.47% 0.60%

Historical Period Projection Period

International Flavors & Fragrances, Inc. (NYSE: IFF)

Discounted Cash Flow Valuation(Values in thousands, USD, except per-share data) Fiscal Year Ended December 31Current Share Price (Closing Price 9/30/2016) 142.97

Number of Basic Shares Outstanding 79,591,844.0Number of Outstanding Options (In-the-Money) 851,000.0Average Option Strike Price 95.05Total Option Proceeds 80,887,330.0Treasury Stock Method Shares Repurchased 565,764.0Additional Shares Outstanding 285,236.0

Total Fully Diluted Shares Outstanding 79,877,080.0

Stock Options Data (See IFF 2015 AR, pg. 84-87)

Award Shares ProceedsSSAR 38,000.0 52.10 1,979,800.0RSU 495,000.0 93.88 46,470,600.0PRS 219,000.0 94.03 20,592,570.0Liability RSU 99,000.0 119.64 11,844,360.0Total 851,000.0 95.05 80,887,330.0

International Flavors & Fragrances, Inc. (NYSE: IFF)

Avg. Exercise Price

Discounted Cash Flow Valuation(Values in thousands, USD, except per-share data) Fiscal Year Ended December 31Consolidated Statements of Income LTM

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 09/30/2016 A

RevenueNet Sales 774,907.0 767,541.0 765,092.0 715,649.0 783,312.0 793,478.0 3,057,531.0

% Growth N/A (1.0%) (0.3%) (6.5%) 9.5% 1.3% N/ACost of Goods Sold 408,645.0 401,445.0 393,908.0 353,497.0 390,345.0 405,722.0 1,543,472.0

% Net Sales 52.7% 52.3% 51.5% 49.4% 49.8% 51.1% 50.5%Gross Profit 366,262.0 366,096.0 371,184.0 362,152.0 392,967.0 387,756.0 1,514,059.0

Gross Profit Margin (%) 47.3% 47.7% 48.5% 50.6% 50.2% 48.9% 49.5%Operating Expenses

Selling, General & Administrative 120,835.0 134,063.0 127,663.0 126,996.0 123,543.0 132,784.0 510,986.0% Net Sales 15.6% 17.5% 16.7% 17.7% 15.8% 16.7% 16.7%

Research & Development 63,462.0 62,514.0 62,750.0 57,375.0 63,385.0 63,252.0 246,762.0% Net Sales 8.2% 8.1% 8.2% 8.0% 8.1% 8.0% 8.1%

Restructuring & Other, Net 187.0 (358.0) 0.0 7,765.0 0.0 0.0 7,765.0% Net Sales 0.02% (0.05%) 0.00% 1.09% 0.00% 0.00% 0.25%

Total Operating Expenses 184,484.0 196,219.0 190,413.0 192,136.0 186,928.0 196,036.0 765,513.0% Net Sales 23.8% 25.6% 24.9% 26.8% 23.9% 24.7% 25.0%

Other (Expense) Income, Net 5,710.0 (436.0) (1,959.0) (6,499.0) 154.0 2,635.0 (5,669.0)% Net Sales 0.74% (0.06%) (0.26%) (0.91%) 0.02% 0.33% (0.19%)

EBITDA 187,488.0 169,441.0 178,812.0 163,517.0 206,193.0 194,355.0 742,877.0EBITDA Margin (%) 24.2% 22.1% 23.4% 22.8% 26.3% 24.5% 24.3%

Depreciation & Amortization 19,985.0 21,056.0 24,058.0 24,498.0 32,758.0 22,115.0 103,429.0% Net Sales 2.6% 2.7% 3.1% 3.4% 4.2% 2.8% 3.4%

EBIT 167,503.0 148,385.0 154,754.0 139,019.0 173,435.0 172,240.0 639,448.0EBIT Margin (%) 21.6% 19.3% 20.2% 19.4% 22.1% 21.7% 20.9%

Interest 11,095.0 11,407.0 11,855.0 11,705.0 12,478.0 15,060.0 51,098.0% Net Sales 1.4% 1.5% 1.5% 1.6% 1.6% 1.9% 1.7%

EBT 156,408.0 136,978.0 142,899.0 127,314.0 160,957.0 157,180.0 588,350.0EBT Margin (%) 20.2% 17.8% 18.7% 17.8% 20.5% 19.8% 19.2%

Income Tax Expense 28,150.0 31,604.0 36,452.0 23,648.0 36,293.0 35,317.0 131,710.0Tax Rate (%) 18.0% 23.1% 25.5% 18.6% 22.5% 22.5% 22.4%

Net Income 128,258.0 105,374.0 106,447.0 103,666.0 124,664.0 121,863.0 456,640.0

International Flavors & Fragrances, Inc. (NYSE: IFF)

Quarterly Data

Discounted Cash Flow Valuation(Values in thousands, USD, except per-share data) Fiscal Year Ended December 31Consolidated Statements of Income LTM

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 09/30/2016 A

Net Income 128,258.0 105,374.0 106,447.0 103,666.0 124,664.0 121,863.0 456,640.0

Other Comprehensive IncomeForeign Currency Translation Adj. (50,515.0) 17,557.0 (48,368.0) (42,830.0) 14,077.0 (4,689.0) (81,810.0)(Loss) Gain on Derivative Hedges 12,083.0 (5,966.0) (12,498.0) 3,411.0 (10,192.0) 800.0 (18,479.0)Pension & Postretirement Liability Adj. 5,547.0 5,476.0 5,478.0 37,616.0 2,555.0 2,578.0 48,227.0

Total Other CI (32,885.0) 17,067.0 (55,388.0) (1,803.0) 6,440.0 (1,311.0) (52,062.0)Other CI as a % Net Sales (4.24%) 2.22% (7.24%) (0.25%) 0.82% (0.17%) (1.70%)

Comprehensive Income 95,373.0 122,441.0 51,059.0 101,863.0 131,104.0 120,552.0 404,578.0

Earnings Per ShareBasic 1.59 1.31 1.33 1.30 1.56 1.53 5.74Diluted N/A N/A N/A N/A N/A N/A 5.72

Avg. Common Shares OutstandingBasic 80,886.4 80,585.5 80,250.2 79,867.9 79,713.9 79,591.8 79,591.8Diluted N/A N/A N/A N/A N/A 79,877.1 79,877.1

Shares Repurchased N/A 300.8 335.3 382.3 154.0 122.0 N/APercent of Shares Repurchased N/A 0.37% 0.42% 0.48% 0.19% 0.15% N/A

International Flavors & Fragrances, Inc. (NYSE: IFF)

Quarterly Data