DECEMBER 16, 2019 / 12:30PM, IFF - International Flavors & Fragrances Inc to Merge with Dupont De
Nemours Inc Nutrition & Biosciences Business - M&A Call
Andreas Fibig - International Flavors & Fragrances Inc. - Chairman & CEO
Look, Faiza, I think thats a very, very valid question, and I believe that we have made good learnings over the last couple of months. And I would say
what has worked extremely well was everything related to cost synergies, whether it is procurement, manufacturing footprint or overhead costs, thats the reason why we are overdelivering.
And we will take this blueprint, and were already talking to Matthias how we basically can do this then for the new combined company. I think we are
good on this. And both companies, as we said before, have great experience.
On the other hand, the things which didnt work so well were some
onetime effects on the sales side and then the compliance in Russia. So I would say, here, we are very, very secure because we dont expect any compliance topics. We have 2 U.S. entities and U.S. companies merging together. Thats number
one.
Number two, we will go with nice tailwind into that sales-wise into that integration because we expect a good rebound, as Matthias just said
in his business for next year. We are pretty set what we can expect for our business. So I believe thats good, and we will see no of these onetime effect. And the major, major topic, and maybe Matthias can comment on that one as well,
its the combined culture because it is when I joined the DD, walked into some of the DuPont facilities, it felt like home. We were talking the same language. And we have same capabilities in different areas, but its very
science-driven, science-led. So we believe that this is something, which is very, very strong going forward.
But
Matthias, please, your comment?
Matthias Heinzel - E. I. du Pont de Nemours and Company - President of Nutrition & Health
Yes. Thank you, Andreas. Certainly, I mean, like Ed mentioned, over the years, weve built quite a bit of expertise starting with the Danisco integration,
which I was involved in, the FMC, the Dow Food and Pharma. So I think my leadership team, which is a very global, very diverse team, has built the expertise, we will apply the right processes. At the end of the day, its I think the people
working together and the shared vision, the passion for innovation and customers. So certainly, I can echo what Andreas said. I mean, are we through the due diligence, we came up with a very collaborative and again shared vision for the future.
Edward D. Breen - DuPont de Nemours, Inc. - Executive Chairman
And I think thats a big distinction. Frutarom brought a lot of great ingredients and products and all to the table, but they didnt have
theres no depth. The depth of the N&B team is very, very strong. And I mean this in a positive way. Its very process-driven. They know what theyre doing. They know how to do this. I think thats a huge distinction.
And theres another big distinction. We have a full year to plan this one, which was not the case in the other. So thats a lot of planning time to
get this right. We will definitely use that time to our advantage.
Operator
And we will go next to Steve Byrne with Bank of
America.
Steve Byrne - BofA Merrill Lynch, Research Division - Director of Equity Research
Yes. So on Slide 14, you list 10 businesses where the combination here results in a category leader. Just wanted to ask whether that category leadership in any
of those 10 businesses was a result of the combination. And then also wanted to ask Matthias, which of your businesses do you see the most potential for revenue synergy by tapping into IFFs customer relationships?
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