At this time, I would like to welcome everyone to the International Flavors & Fragrances Second Quarter 2016 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 - Vice President, Global Corporate Communications & Investor Relations: Thank you. Good morning, good afternoon, and good evening, everyone. Welcome to IFF's second quarter 2016 conference call. Yesterday evening, we distributed a press release announcing our financial results. A copy of the release can be found on our IR website at ir.iff.com. Please note that this call is being recorded and will be available for replay on our website. Please take a moment to review our forward-looking statements. During the call, we will be making forward-looking statements about the company's performance, particularly (1:10) for the second half and full year 2016. 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 forward-looking statements, please refer to our cautionary statement and risk factors contained in our 10-K filed on March 1, 2016 and our press release that we filed yesterday, all of which are available on our website. Today's 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 set forth in our press release that we issued yesterday and is also on our website.…

And your first question comes from Mark Astrachan with Stifel. Mark Astrachan - Stifel, Nicolaus & Co., Inc.: Yes, thanks and morning, everybody. Wanted to ask about sales growth. So you're still guiding to growth for 2016 below long-term targets, so want to understand how the business is performing relative to the going-in beginning of the year plan. And then more broadly, want to understand how we should think about returning to 4% to 6% long-term sales growth targets. Is that predicated on improving end demand, IFF specific share gains, acquisitions, et cetera? Andreas Fibig - Chairman & Chief Executive Officer: Okay, Mark, thank you for the first question. Let me talk about 2016 first. And it's true that the performance first half of the year was a good – actually a very good growth rate and a great performance. But we have all witnessed that there's great macroeconomic and political volatility over the course of the year. And we will see it in some of our geographies which are important for us. We will have elections in the U.S. We have seen the Brexit. And we have seen other events like Turkey for example, where we have to be cautious. And that's the reason why we reiterate our guidance and we believe we are on track to make it. But the volatility is certainly unprecedented. Talking about 2017, I can't talk in detail about 2017. I believe that needs some more time because we have first of all to finish 2016. But we will return and we are optimistic to return to our long-term guidance because what we see is actually a couple of things. First of all, we have an unprecedented pipeline strengths in terms of new molecules for Fragrances, for example. We see great progress in some…

Your next question comes from Lauren Lieberman with Barclays.

Thanks so much. Good morning. Andreas Fibig - Chairman & Chief Executive Officer: Good morning.

I want to talk first about the North America Flavors. It looks like the organic was up a little bit and it seems like probably an acceleration coming next quarter. Can you just talk about what's sort of driving the improvement you're starting to see in North America Flavors? Andreas Fibig - Chairman & Chief Executive Officer: I'll probably take it. Lauren, first of all, it's Andreas, great question. In North America, we have actually seen good movements in some of the smaller accounts we are having. That's the reason why our IFF-Ottens has actually very, very good performance here. But we see a recovering of some of our bigger accounts as well. We have a better win rate. And we are cautiously optimistic for North America. But we have to take into consideration that the North America market as a market is not a high growth market. So we always have to take this into perspective.

Okay. And then also on Asia, I was actually surprised to see Asia both Flavor and Consumer Fragrances being so strong, both because of the macro in the region and usually kind of looking at your trend as a little bit of a leading indicator of where your customers expect sales trends to go and also knowing some of the manufacturing challenges you were dealing within China. So if you could talk about I guess market growth and also some of the manufacturing things in China, that would be great. Alison A. Cornell - Chief Financial Officer & Executive Vice President: So, Lauren, it's Alison. So, first, while we had continued challenges in China, what we saw was growth in Indonesia, India, across Greater Asia. And that was a function of our technology, our delivery, so encapsulation, our delivery systems, very strong pipeline, strong win rate and so all those things are combining to deliver a strong performance despite our challenge in China. As we talked about China previously, we have taken corrective steps in China in terms of the odor-abatement issue as well as announcing our second factory in China. We've also modified our commercial strategy that we're targeting I'd say higher growing categories. As you know, in order to commercialize things in this space, it takes time. So, fortunately in the interim, we're experiencing strength in the other areas in – or the other geographic places across Greater Asia.

Okay. So, that's great. So, in China, this – sorry – excuse me, in Asia, the strength wasn't even yet showing that China's starting to come back for you other than any kind of recapture of some of the lost business? Alison A. Cornell - Chief Financial Officer & Executive Vice President: Exactly.

Okay. That's great. Thank you so much. Alison A. Cornell - Chief Financial Officer & Executive Vice President: Sure.

Your next question comes from the line of Silke Kueck from JPMorgan.

Good morning. This is Silke Kueck for Jeff Zekauskas. How are you? Alison A. Cornell - Chief Financial Officer & Executive Vice President: Great. Thank you. Andreas Fibig - Chairman & Chief Executive Officer: We're very well, Silke.

I was wondering whether you can shed a little bit of light on the gross margin expansion in the quarter, like what was the benefit from favorable buys over costs, were there any hedging gains due to productivity improvements? Alison A. Cornell - Chief Financial Officer & Executive Vice President: Yes, so there were, I'll say, several benefits. So we had first, starting with volume, so that was about 120 basis points. So it's cost productivity initiatives, another 120 basis points, and that was offset by other items like unfavorable price to input costs, higher incentive compensation, higher RSA and then slightly negative mix, but the biggest drivers from the favorability, volume and cost.

As you think about the back half of the year, do you think a 46% (29:00) gross margin is something that's sustainable? Alison A. Cornell - Chief Financial Officer & Executive Vice President: Yes. There or thereabouts.

Okay. Alison A. Cornell - Chief Financial Officer & Executive Vice President: Yes, what you'll see, though, is it will be somewhat weaker in Q3 and that's relative to the timing of our cash flow hedge and then stronger in Q4.

In terms of the SG&A line, so the SG&A grew 7.5% on sales that were up 3%. And can you discuss what was due to the strategic investments and how much was due to the acquisitions and maybe higher amortization expense? Alison A. Cornell - Chief Financial Officer & Executive Vice President: Sure. So let me start with amortization expenses. So amortization expense in the quarter was $3.3 million. From a strategic investment perspective, that was $4.5 million or call it, three percentage points of growth. That splits $700,000 in Fragrances, $600,000 in Flavors, and then we had $3.2 million that's associated with cost and productivity initiatives. All of those initiatives are in line with our Vision 2020 strategy.

And what do you think the level of investment of strategic investments will be for the second half, like it sounds like that that level of spending is going up, if I understood it right? Alison A. Cornell - Chief Financial Officer & Executive Vice President: I would say it's consistent with the run rate, if not slightly higher. Again, what you'll see is in Q3 the timing of our – you'll see greater spending in Q3 associated with strategic initiatives and that's really just due to the timing of the projects versus Q4. So at a macro level, it's consistent with run rate but it does have a quarterly spread.

And so when you look at your operating margin as a whole for the third quarter, do you think the margins would expand or would it be more flattish due to the timing of the investments? Alison A. Cornell - Chief Financial Officer & Executive Vice President: I would say they'd be flat in the third quarter and improved in the fourth quarter.

And then my last question, I was wondering what your expectation is as for the new flavor modulator that you launched. If you look at it over like, I don't know, like a one-year period or a three-year period or a five-year period, like how big of a market is there for that product and what do you think – what revenues do you expect over time on it? Andreas Fibig - Chairman & Chief Executive Officer: Silke, it's very early times for the new modulator, and we can't give you any specific guidance on that one. But we might come back when we see more, let's say, in-market sales here.

Do you have a hope of what you may achieve? Andreas Fibig - Chairman & Chief Executive Officer: We have always great hopes, but I can't give you anything in specific here.

Okay. Andreas Fibig - Chairman & Chief Executive Officer: I'm sorry.

And thanks very much. I'll get back into the queue. Andreas Fibig - Chairman & Chief Executive Officer: Okay.

Your next question comes from Heidi Vesterinen with BNP Paribas.

Hi, I wanted to ask about LatAm. Was the weakness just in Argentina or are you seeing weakness in other countries as well because we're hearing from some customers that Brazil is getting quite bad and potentially worse in the second half. Perhaps you could talk us through trends that you're seeing in the key countries you're exposed to in LatAm, please. Thank you. Andreas Fibig - Chairman & Chief Executive Officer: Heidi, thank you for the question. It was basically Argentina for us which was really bad, and here I would say my interpretation is that there's a lot of changes in the policies as well in import and export and we will see how that straightens out over the course of the year. Actually on Brazil, in terms of the Fine Fragrances business, it was doing very, very well. So we can't see the weakness here. And we have another hope that we'll see Olympic Games probably using – people are using some more personal wash, but you never know. I'm sorry.

That's great. Thank you.

Your next question comes from Mike Sison with KeyBanc.

Hey, good morning and nice quarter there. Andreas, interesting, every time I see a commercial these days they talk about reformulating into naturals, both fast food and some of your consumer products companies. Can you sort of walk us through how this movement to more natural ingredients continues to impact your business, and do you think it potentially accelerates over the next couple of years? Andreas Fibig - Chairman & Chief Executive Officer: Actually our planning or our belief is that we might see even more of an acceleration. We get already on the Flavors side more than 50% of all briefs (33:45) on naturals or organic. And so this is a clear trend, and I think it goes with the trend of health and wellness as well. So that this is basically the ask from the consumer. That's what we see in our consumer surveys as well. So that will be something which will stay strong over time. And here what we see, particularly also on the modulators, and you know we do on savory, on sweetness modulations, they're basically all-natural right now in what we are doing. That's another indicator that this trend is probably here to stay. Okay, Mike?

Okay. Great. And then in cosmetic actives, I think every quarter you report it's double digits. So, can you help us understand maybe what's driving that? Is there some end market drivers there? And is that something that can continue for quite some time? Andreas Fibig - Chairman & Chief Executive Officer: So first of all, the business we have acquired here had already in the past a very solid track record. But what we see right now for us is that first of all the whole market has a higher growth rate than our core market, with probably 4.5%, which is basically double, almost double what we see in our core market. And then we see that we come up with good solutions which are really needed by the customers, plus we find new customers as well because – and that was the idea of the acquisition, that we can open some doors for the active cosmetic sales teams to make sure that we introduce them to some of our clients we have already for many, many years. So that's a classic top line synergy we are playing here.

Okay. And then last one, in terms of your outlook for the second half of the year, if conditions kind of stay where they are now, would you be similar to the first half? Meaning that you kept your guidance despite doing better in the first half, you would need sort of a deterioration in the environment from here to be at the lower end? Andreas Fibig - Chairman & Chief Executive Officer: Look, Mike, we reiterate guidance here. That's where we stay, because you never know how things are playing out.

Okay. Thank you.

Your next question comes from Faiza Alwy with Deutsche Bank.

Yes, hi. Thank you. Good morning. I was just wondering, Andreas, if you could give us some more background on – you talked about the new core list that you have gotten on recently that you weren't on before. If you could maybe give us some more background around that, sort of what led to that? Was it your technology? Was it customer relationships? Sort of just a little bit more on that. Andreas Fibig - Chairman & Chief Executive Officer: Faiza, first of all, good morning. Unfortunately, I can't give you any more details on the core list. But it's a significant customer for us which is, I think, that's important to know, has a good volume. And what helped us here is certainly technology. So the technology we are providing to this specific customer has helped to gain access. The second one is certainly our, let's say, focus on the customer and being a partner of choice, as well to working with them very, very closely together in many, many areas, and that has helped us to gain access here.

Okay. Great. And then I just want to push a little bit more on Latin America because it sounds like you do have difficult comps going into the third quarter also, and I know we talked about it a little bit with respect to Argentina. But is there anything else? Is that expected to continue into the back half? And are you expecting a recovery there in the back half or do you expect trends to be similar to where they were this quarter? Alison A. Cornell - Chief Financial Officer & Executive Vice President: So, I think overall, we're going to see a slight recovery in the Flavors space, but from a Fragrance perspective, I'd say we remain cautious for the second half.

Okay, okay. And then just one last one, Alison, you have that great chart as part of the Q4 presentation where we talked about the profitability improvement in 2016 and you highlighted Vision 2020 investments were going to reduce operating profit by 3.5% and then fund the journey was going to help by 5% to 6%. I know you talked about where we are in terms of the investments. Can you talk about some of the savings that we've seen so far? Have those come through, or are those expected in the back half? Alison A. Cornell - Chief Financial Officer & Executive Vice President: Yes, so I would say, Faiza, that we're tracking with our plan, both on the investment side as well as the fund the journey, productivity cost savings initiatives and so those are in line with our plan.

Okay, great. Thank you.

Your next question comes from Jonathan Feeney with Consumer Edge Research.

Good morning. Thanks very much. I wanted to ask, I'm not sure I understood just to be clear on your answer to Lauren's question, Alison, what would – that mid-single-digit growth in North America Flavors, I think the Ottens business is fairly heavy in North America. Could you just give us a sense what that would have been without the acquisition? Alison A. Cornell - Chief Financial Officer & Executive Vice President: Sure. So organically in the second quarter we were flat in North America. Having said that, through the second half of the year, our organic business by itself, excluding Ottens Flavors, improve, and that was based on the pipeline, strong wins and so forth through the second half of the year.

Great. Thanks. And forgive me if you'd mentioned this before, but would the margin profile of Ottens Flavors be likely similar to your overall margin profile? Alison A. Cornell - Chief Financial Officer & Executive Vice President: Yes. Andreas Fibig - Chairman & Chief Executive Officer: Yes.

Okay. Great. And then I guess just one bigger picture question. The capabilities you build through Meyer and Ottens, I mean how much of this is specific to a set of customers and how much of this is building competitive advantage relative to the other big three global players? Do you feel as if this is a race and all these companies are sort of building your capabilities and you're positioning IFF to be stronger, or is this sort of – are these sub-niches that you're trying to maybe stake out while the other three, big three sort of stake out other niches? Andreas Fibig - Chairman & Chief Executive Officer: No, actually if you look at the two acquisitions, quite a different approach. On the active cosmetic ingredients, we were looking at an adjacent business to our Fragrance business and we entered into this business because we believe that we have great top line synergies here in terms of the customer coverage and we are playing in the premium segment of that market, which gives us an extra profitability and certainly a good growth as well. So that's important to understand. That was the reason why we ventured into that business. On the Flavors side, different approach because as we said and probably many of our competitors are telling you that as well is, that you see some of the smaller, mid-sized companies with higher growth rates and we needed kind of a differentiated service model for that part of the market as well. And that was the reason that we acquired Ottens, to use it as a platform in that segment because this way usually customers who were not reaching out as much as we would like to have it, and now we have the platform, we're filling the platform and we are pretty happy with it.

Okay. Great. Thank you very much, Andreas and Alison.

And your next question comes from the line of Edlain Rodriguez with UBS.

Thank you. Good morning, guys. Just a quick follow-up on M&A, I mean, Andreas, you've talked about like the pipeline and opportunities that are available, so I was just trying to figure out like what's preventing you from closing on some of those deals? Is it just that those assets are very pricey, and you have to make sure they make sense financially or is it just a matter of time? Just wanted to figure out like what the opportunities are? Andreas Fibig - Chairman & Chief Executive Officer: So, Edlain, it's actually more a matter of time because you really have to work through the pipeline. You have to figure out what is the real value of these assets and do they make sense from a strategic point of view. So we are certainly not, let's say, under pressure here to do it. We're really taking our time to look at these assets and then make the call at the time as time is ready to do it.

That makes sense. And one last one, you've highlighted the markets where you're doing well and in some of the markets where you're seeing weakness, Latin America and some other products in other places, like do you believe it's temporary? And if it's not, like are there steps you can take to address that to make sure it doesn't have like a significant impact on results going forward? Andreas Fibig - Chairman & Chief Executive Officer: I actually believe in particular in the emerging markets it's temporary, because in the mid-term and long-term you will see still, let's say, very significant population growth and people are trending towards middle class, lower middle class. And these are all potential customers for our products. If you look at the numbers, for example Africa, Middle East is an area which is expanding double-digit for us and you will see a doubling of the population in Africa until 2050. So it will happen. We always see these kind of spikes or lambadas (44:10) going forward. And I'm actually very optimistic in a long way and said these will stay good growth areas for us. And the good thing was in IFF is as you might know is that we have 50% of all our business in the emerging markets and 50% individual markets and so that will help us when we see these markets returning to good growth here. Whether we will see like to see in a China again double-digit growth over years, I doubt it. But even if you see let's say 6% or 7% growth I think it's still a pretty significant one.

Okay. Thank you very much.

You have a follow-up question with Heidi Vesterinen with BNP Paribas. Andreas Fibig - Chairman & Chief Executive Officer: Heidi?

Sorry, sorry about that. Could you tell us what the organic growth rate might be if you included LatAm currency effects like your peers do, please? Thank you. Michael DeVeau - Vice President, Global Corporate Communications & Investor Relations: Yes, Heidi, we don't have the specificity at this point. This is Mike. I can follow up with you offline. It will be significantly higher, because that's probably where the most concentrated effort would have been in terms of the differential in reporting differences respect to pricing late FX.

All right. Thank you. Alison A. Cornell - Chief Financial Officer & Executive Vice President: Thanks.

And I'm showing no further questions at this time. I'll now turn the call back over to speakers. Andreas Fibig - Chairman & Chief Executive Officer: Thank you very much for all your questions. And have a great day. Thank you. Bye, bye.

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