At this time, I would like to welcome everyone to the International Flavors & Fragrances' Third Quarter 2015 Earnings Conference Call. All participants will be in a listen-only mode until the formal question-and-answer portion of the call. 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, Vice President, Global Corporate Communications and Investor Relations. You may begin. Michael DeVeau - VP, Global Corporate Communications & Investor Relations: Thank you. Good morning, good afternoon and good evening everyone. Welcome to IFF's third quarter 2015 conference call. Yesterday we distributed press release announcing our financial results. A copy of the release can be found on our IR website at iff.com. Please note that this call is being recorded and will be available for replay. Please take a moment to review our forward-looking statements. During the call, we'll be making forward-looking statements about the company's performance, particularly with regard to our outlook for the fourth quarter and full-year of 2015. These statements are based on how we see things today and contain elements of uncertainty. For additional information concerning factors that can cause actual results to differ materially from forward-looking statements, please refer to our cautionary statement and risk factors contained in our 10-K filed on March 2, 2015 and our press release that we filed yesterday. Today's presentation will include non-GAAP financial measures, which excludes those items that we believe affects comparability. A reconciliation of these non-GAAP financial measures to their respective GAAP measures is set forth in our press release. With me on the call today is our Chairman and CEO, Andreas Fibig; our Executive Vice President and CFO, Alison Cornell; our…

. And your first question comes from Mark Astrachan with Stifel, Nicolaus. Mark S. Astrachan - Stifel, Nicolaus & Co., Inc.: Yeah, thanks and good morning everybody. Wanted to get some clarity on the fourth quarter expectations from a revenue standpoint. So, if you back out the benefit of acquisitions, are you talking about flattish organic like-for-like, however you want to think about it, sales growth? And then sort of more broadly elaborating on sales growth, I know it's early, but how do you think about 2016 just broadly given continued pressure from customer volumes, as well as the tough first quarter comparisons? Alison A. Cornell - Chief Financial Officer & Executive Vice President: So, Mark, from a Q4 perspective, we expect to be flat to slightly positive. We have our first month of orders in, which are positive and although one month doesn't make the quarter, it reflects positive results there. If we look into 2016, specifically Q1, while we're still in our budget process, remember in Q1 of 2016 we're facing our toughest comps year-on-year in terms of growth comparison, specifically in, say, Flavors where we grew 9% in Q1 of 2015. So at this point in time as we enter the year we're facing our toughest comps and so we expect Q1 to be challenging. But as we traditionally do expect to share more in our February call regarding our 2016 full-year guidance. Mark S. Astrachan - Stifel, Nicolaus & Co., Inc.: Okay. Just elaborating on that though, again preliminary as it is, do you expect long-term targets to be attainable given what's going on from a customer standpoint? Alison A. Cornell - Chief Financial Officer & Executive Vice President: I mean, at this point, as I mentioned, we're still in our budget process and we really…

Your next question comes from Lauren Lieberman with Barclays Capital.

Thanks, good morning. Andreas Fibig - Chairman & Chief Executive Officer: Good morning.

Good morning. So just speaking following on that question. In the Q, there was a mention of some derivative gains that are going to be reclassified as income next year. So does that also flow through gross margin, so maybe kind of takes the place of these raw material hedging gains? Alison A. Cornell - Chief Financial Officer & Executive Vice President: So, Lauren, let me talk a bit about that. And so, we indicated on our Investor Day that we intended to finance our M&A activity through balance sheet leverage. And so between Ottens and Lucas Meyer acquisitions, we executed about $500 million in acquisitions. Initially these were paid for using our existing credit facility and on-hand cash, and now we're looking at longer-term financing opportunities to better align our maturities with the nature of those acquisition. So in September, we entered into interest swaps in anticipation of a long term debt financing and the deferred charges in that table and our 10-Q are being accounted for right now as a hedging instrument, as they are related to these swaps. We still are in the process of evaluating our options for financing and at this point, we haven't finalized the timing or nature of the financing and we expect to have more clarity on that in Q1 of next year.

Okay. That's great. But is that also – does that conversation cover, I think there was like $8.7 million that was in comprehensive income that was called out as being reclassified over the next 12 months. Are those the swaps? Michael DeVeau - VP, Global Corporate Communications & Investor Relations: Lauren, it's Mike. It's okay. Maybe just as I go through the Q, maybe we can touch base offline on that, I'm not sure...

Yes, absolutely. Michael DeVeau - VP, Global Corporate Communications & Investor Relations: We're following from that point (37:02). Okay.

Absolutely. Okay. And then just on Asia Flavors, so I was surprised that flat just felt very strong to me given the commentary at our conference in September and I know, Alison, you talked about strong orders the last week of the quarter. Was that comment specific to Asia Flavors and what have you seen from those customers in the first month? You said that overall orders were up, but I just wondered about the volatility or choppiness of orders from that particular customer base you've been concerned about. Alison A. Cornell - Chief Financial Officer & Executive Vice President: So, Lauren, you did comment – we did experience softness in China, so if you looked at China by itself, as a subset for Greater Asia in Flavors, it was negative growth. Why it looks flat is because there was offsetting growth in Indonesia, India, Singapore and Japan. And so that's really why it looks flat. I'll ask, Matthias to comment on what we've seen so far in October in terms of the customer make-up.

Well, Lauren, good morning. We have seen a very similar pattern also in the first month of the quarter. I think we made good in-road with new business in all the markets, Alison just referred to, yet we see also continuous challenges in China. We expect that these challenges will continue throughout the quarter, and we're working very diligently with the team, with our customers to strengthen our business in China. And we're still good and confident that we will see a reverse situation in the quarters to come.

Okay, great. And then just finally on Fine Fragrance, you called out some of the strength, some of the pipeline still on really great new wins in Europe. So does the outlook sort of assume that all the sell-in is kind of done that would cover holiday sell-through of those wins? Andreas Fibig - Chairman & Chief Executive Officer: Nicolas?

Hi, Lauren. This is Nicolas.

Hi.

Yes, you're right, very strong pipeline of the new wins, and as you pointed out, it's really to cover the period of Christmas. So according to the way the sales progress at the retail level, we will see what will be the replenishment (39:17) from our customers.

Okay, great. Thank you. Andreas Fibig - Chairman & Chief Executive Officer: Thank you. Alison A. Cornell - Chief Financial Officer & Executive Vice President: Thanks. Andreas Fibig - Chairman & Chief Executive Officer: Thank you.

And your next question comes from Mike Sison of KeyBanc Capital Markets.

Hey, good morning. Nice quarter. Andreas Fibig - Chairman & Chief Executive Officer: Good morning. Alison A. Cornell - Chief Financial Officer & Executive Vice President: Thank you.

Just trying to getting a feel for the tempo of demand. It looks – I think you sort of noted that fourth-quarter currency adjusted sales growth will be slower. So what are your customers telling you? Are things actually slowing or stable? Just trying to get an understanding in both Flavors and Fragrances where the tempo of demand is headed. Andreas Fibig - Chairman & Chief Executive Officer: Mike, this is Andreas, I'm taking that. What we see is that for some of our – particularly our global customers the volumes are slowing, but it's actually not a one-fits-all answer, because we see in some areas like still Latin America on the Flavor side, we see strong growth as in the third quarter, which is really double digit. We see countries in Asia with strong growth for both businesses. And we see Europe at least on, for our business, recovering as well. So at the end of the day, it's a very mixed picture region-by-region. The only thing which is probably universal is that the volume for some of the global customers is really challenged. So that's how I would comment on that one, so it's very different and it depends also on the technologies and let me elaborate on that. If you have a technology, which helps the customers to grow the business like our Sweetness Modulation for example, which we are selling very well or the encapsulation on the Fragrance side, then the wins are strong and you really can even against the market trends make great strides. I know it's probably not a general satisfying answer, but it's a very diverse picture we are dealing with here.

Okay. I understand. And then your acquisitions have performed really well, it seems. Can you talk about your pipeline given that could be a good use of cash and growth going forward? Andreas Fibig - Chairman & Chief Executive Officer: So, you mean the pipeline for M&A?

Of acquisitions, yes. Are you seeing good opportunities out there? Andreas Fibig - Chairman & Chief Executive Officer: So what we do is, we look at with different lenses at the market, what kind of technology would be valuable for us? Second, where do we need, let's say, a local or regional strengthening of our presence or with certain customers, and in general, good quality companies like we have done with Ottens and Lucas Meyer. So we have a good pipeline, I can't comment further on this one, but we are further looking. And the good thing is that the acquisitions are going very well in terms of the integration. So it means after many years with very little M&A activity, I think, the organization is doing very well to get these quality assets into our portfolio, and they performed actually very well. Just one remark on the skin care or active cosmetic ingredients side, we are very pleased what we see in this market segment because it has just a higher growth than our core markets. So, all-in-all very positive, we have a pipeline and we will, let's say, continue our path here.

Great. Thank you. Andreas Fibig - Chairman & Chief Executive Officer: Okay.

Your next question comes from Jeff Zekauskas with JPMorgan.

Thanks very much. I just want to be sure that I can interpret your results reasonably. So what you said was that your adjusted sales were down 1% and your operating profit was up 7%. I assume that that includes the hedge gains and that if the hedge gains are excluded the operating profit is probably flat to up and in your adjusted currency neutral, where you grow sales 7% and your operating profit 10%, I assume that that excludes the hedge gains and other currency gains. Is that correct? Alison A. Cornell - Chief Financial Officer & Executive Vice President: So I'm going to ask Rich O'Leary to answer that.

Sure. Richard O’Leary - Interim Chief Financial Officer: Hey, Jeff, it's Rich. So, yeah, I think there's two things to think about. When we talk about the margin evolution because the hedge gains are in there on a reported basis, we'll show the year – we'll talk to the year-over-year impact. When we're going to currency neutral, we did what we basically do is restate last year's to reflect the current year gains. So we're stripping out the year-over-year impact and we're making consistent year-over-year from the cash flow hedging impact.

So the hedges are – so again, so the hedges and the currency gains are stripped out of currency neutral, but the hedge gains are included in the first presentation, in the sales contracting 1% and operating profit up 7%? Richard O’Leary - Interim Chief Financial Officer: Well, on a sales basis, we don't hedge the sales line.

Exactly right. It's really the operating profit that's the issue. Richard O’Leary - Interim Chief Financial Officer: Yeah. So on an operating profit when we talk reported-to-reported, it will have the year-over-year impact of the cash flow hedging, either gains or losses; in the case of 2015, it's gains. When we go to currency neutral, we just reflect the current year impact of the gains, so we're not having a year-over-year impact because last year's cash flow hedging impact is really related to 2013 and so we're stripping that two-year basis out.

Right. And then in the course of the call you talked about a $9 million benefit, but when you go to the Q, it looks like it's something more like a $7 million benefit in terms of the cash flow hedging. Why the $9 million instead of the $7 million or what's the extra amount that's added on to the cash flow hedge benefit? Richard O’Leary - Interim Chief Financial Officer: Again, that's the difference between – it's more or less – it's the difference between when we're trying to reconcile – when we're trying to talk to the change year-over-year for example in gross margin. Those are reported-to-reported and that's where you have the year-over-year impact, which is the higher number. When we talk to the operating profit impact, we strip out the last year's impact.

Okay, great. Thank you so much.

Your next question comes from Faiza Alwy with Deutsche Bank.

Yes, hi, good morning. Andreas Fibig - Chairman & Chief Executive Officer: Good morning. Michael DeVeau - VP, Global Corporate Communications & Investor Relations: Good morning, Faiza.

Good morning. So I just had a few clarifying questions first. One, I think at the Back-to-School Conference you had talked about local currency sales growth of 6% for the year with even contribution from acquisitions and organic growth. So does that still stand or should we expect a larger contribution from organic growth now? Alison A. Cornell - Chief Financial Officer & Executive Vice President: So, when I talked about even distribution at the Back-to-School Conference, I mean, some of it was relative to rounding as well. So, I would think about it as a 3.5% organic, about 2.5% acquisition related, to get to the 6%.

Okay. Great. And then I just wanted to talk a little bit more about Latin America, particularly on the Flavors side. Some of your competitors have been talking about a potential pricing benefit in Latin America. I don't know if that's because they're euro denominated and it's different for you. So maybe if you could talk about are you able to take some pricing in certain markets or categories to offset currency? Alison A. Cornell - Chief Financial Officer & Executive Vice President: So, let me start by making a comment in terms of comparison. And so when looking company-to-company, we need to make sure that things are compared on an apples-to-apples basis, organic-to-organic basis and comparable currency related to FX, because I think as reflected in reports, taken as written, they're not comparable. So I think you need to make sure before you compare two companies, you make sure that they are comparable. So with that let me ask Matthias to talk about Latin America market dynamics.

Faiza, we're really traveling well with the many new wins, which we had this year. We also feel very confident that we will continue to commercialize many of the projects, which we have. We have an exciting project pipeline throughout the region. Yes, we face some challenges on current volumes and we will offset it however with new wins, we feel good about it. We always reported that we had very good in-roads in Beverages. We're now expanding more also into Savory, into the Dairy category. And frankly overall, we'll feel pretty good about it also in Q4. Alison A. Cornell - Chief Financial Officer & Executive Vice President: If I could, just one more comment, just so you know what we do in your apples-to-apples comparison. We fully restate all currency.

Okay. And then could you maybe just tell us what percentage of the Flavors business is LatAm or maybe what percentage of the LatAm business is Flavors just so we could size it because the growth just seems really strong at 20%, so I'm just wondering is it – if you could talk about are these local customers, sort of what the size might be, maybe expand a little bit more on that? Michael DeVeau - VP, Global Corporate Communications & Investor Relations: Yeah, Faiza, it's Michael. I mean, we traditionally don't disclose from a Flavor standpoint our percentage of business. I think as you think about it, it's probably our smallest region with respect to the other regions that we have globally, but from a business standpoint maybe Matthias, if you want to provide additional commentary.

Yes, Mike outlined the smallest region, yet from a growth perspective for us very sizable, very impactful. We feel very good about the in-roads we make and I'm confident that we are gaining great market share in Latin America. Again what we are reporting here is the all like-for-like, this is currency neutral, there is no element of pricing in it, but volume and new wins.

Okay. Thank you.

Your next question comes from Jon Feeney with Athlos. Andreas Fibig - Chairman & Chief Executive Officer: Hi, Jon.

Could you give us a sense how large right now the naturals business is globally for you and what its growth is and what sort of growth rate are you expecting in the naturals business across categories over the next couple of years?

Well, from a Flavor perspective, we have probably more than 50% of all the new briefs, which we are working on are calling for natural solutions, natural Flavors. We feel excited about the many requests for natural modulators. I cannot exactly give you an indication of the overall market growth. The underlying market growth of naturals, we only realize that definitely naturals are outperforming any other product offerings in the marketplace. It's not only here in North America where more and more consumers they're looking to organics, (51:24) organic and natural. We see very same trends around the world, in Western Europe but also in many mature markets in Asia, in particular. We have also a higher win rate in naturals as such, as we are well positioned for it and frankly, we see all these requests and all these briefs as exciting opportunities for us to accelerate growth.

I got you. Thank you. Just a couple follow-ups on that, if you don't mind. You said more than 50% of all new briefs, but of the existing business can you give me a sense of how much revenue right now is going from – is in products that are already sort of meeting those kinds of natural specifications. And the second question is typically with these new briefs, does that involve a higher pricing or fully developed margin to IFF in the Flavors business as you reformulate with naturals?

Let me take first the question on the margin profiles. Whenever we are in a position to bring technology into a product offering, we typically have a higher margin profile. When it comes to 50% plus on naturals, keep in mind that we still have a lot of developing markets where natural as such may not necessarily be the major call. I'm referring here to many developing markets also in Africa and Middle East and in many other parts of the world. To the question on what the total percentage of the portfolio of natural is all about and we are not sharing this information. We feel good about what we currently have and frankly we made very good in-roads. Alison A. Cornell - Chief Financial Officer & Executive Vice President: And just to further comment in terms of model, we have a cost-plus model and relative to naturals as well.

Cost plus. So that's actually very helpful, Alison. So when you say cost plus meaning your margin in terms of dollars tends to stay flat and you charge up on that, so you might see higher – same or higher penny profit, but lower percentage margin or do you actually – when you say cost plus, is it a percentage of cost? Alison A. Cornell - Chief Financial Officer & Executive Vice President: Yeah, so essentially what it means is if costs go up, the price goes up.

Right. Alison A. Cornell - Chief Financial Officer & Executive Vice President: We maintain the margin.

Okay. But your – is that – I guess that's a simple question. Is it a margin expansion opportunity in terms of total dollars coming into IFF when someone replaces, typically speaking, replaces an artificial with a natural product. Alison A. Cornell - Chief Financial Officer & Executive Vice President: No, not in and of itself.

It is more important, Jon, what kind of categories, whether it is Beverage or Savory that makes a difference in terms of the portability or margin perspective. But not whether it's synthetic or natural.

Okay. Thank you very much.

And your last question comes from John Roberts with UBS.

Good morning. Can you hear me? Andreas Fibig - Chairman & Chief Executive Officer: Yes, good morning, John.

Sometimes your incentive compensation accruals in a quarter can be different from the other quarters, but the change in business tone in the fourth quarter, would you expect to under accrue or reverse any incentive compensation in the fourth quarter? Alison A. Cornell - Chief Financial Officer & Executive Vice President: So we can say this about incentive compensation, because we do not enclose our incentive compensation numbers other than calling out a variance and so I can't give you an exact number. I would say, it's marginally favorable in Q3, but will be a larger benefit in Q4, based on our projected performance.

Okay. And then, secondly, when you talked about your global customers seeing some slowdown, it sounds like in the developed markets you're still seeing the smaller customers outperform the larger customers. I think that's a trend we've seen for several quarters now. Andreas Fibig - Chairman & Chief Executive Officer: Yeah. Absolutely, John. That's what we see in many markets that the smaller and regional customers have just good growth rates. And if you're with these customers and then you really can do very well – very good business. And that was actually one of the reasons why we acquired Ottens here for Flavors in the U.S. and just participating in that segment of the market, a bit better in the U.S.

Okay. Thank you.

And your next question comes from Heidi Vesterinen with Exane. Heidi, your line is open. You may need to un-mute on your end.

Sorry, hi, I'm back. I wanted to go back to the naturals question. I heard from some other ingredients company, slightly different for Flavors, but still in naturals that a lot of the smaller companies have been faster at reformulating into naturals and we've seen a lot of reformulation announcements from the globals, but they still tend to be in the discussion or testing stage and we haven't actually seen the big volumes come through. Would you agree with this or are you already benefiting from this trend? Thank you. Andreas Fibig - Chairman & Chief Executive Officer: Good morning, Heidi. I totally agree and support this, I think we have seen that smaller companies are faster in the implementation and they're also much faster in the replacement of either artificial nature identical (56:56) into natural. We see them launching more innovative product solutions and we expect that the larger accounts they will follow in the quarters to come.

Thank you. Andreas Fibig - Chairman & Chief Executive Officer: You're welcome.

Now, I'd like to turn the call back over to Andreas. Andreas Fibig - Chairman & Chief Executive Officer: Yeah, thank you very much. Thank you much for your time. Good quarter, quarter three, we are on track for year 2015, and I believe we will have a good trajectory for years to come. Thank you very much.

Thank you for joining today's conference. You may now disconnect.