Slide 1: Fourth Quarter 2022 Investor Presentation
Fourth Quarter 2022 Investor Presentation
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This document contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including under “2023 Financial Outlook” in this presentation. Such forward-looking statements are not guarantees of future performance and invo
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Within this document, the Company reports certain non-GAAP financial measures, including: (1) adjusted revenue, adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share (which exclude divestiture & other related costs, the results of the d
Slide 4: Sensient Overview
Sensient Overview Provider of customized solutions for food and beverage, pharmaceutical, and personal care customers Global market leader offering an extensive portfolio of natural flavor and color technology platforms and solutions Exceptional innovation & applications expertise with unique abilit
Slide 5: Innovative Technologies Creating Unique Solutions
Innovative Technologies Creating Unique Solutions Applications expertise and solutions-based selling High impact relative to cost Technically-driven products that are difficult to replace Strong consumer trends Opportunities to grow organically and through M&A 5
Slide 6: Focusing our portfolio and strengthening our commitment to the end markets
Focusing our portfolio and strengthening our commitment to the end markets Investing in core focus areas of Flavors and Extracts, Natural Ingredients, Food and Pharmaceutical Colors, and Personal Care Divested non-core product lines (inks, fragrances, and yogurt fruit prep product lines) in 2020 and
Slide 7: Natural solutions provider focused on consistent and sustainable supply chain
Natural solutions provider focused on consistent and sustainable supply chain Provider of natural solutions to support health & wellness and clean label consumer trends Robust agronomy program ensures responsible procurement and traceability of sustainable ingredients Committed to delivering safe, a
Slide 8: Global Revenue by Group
Global Revenue by Group Color Group 2022 Revenue: $604M Core Areas of Focus: Food and Pharmaceutical Colors and Personal Care Flavors & Extracts Group 2022 Revenue: $738M Core Areas of Focus: Natural Flavors, Extracts and Natural Ingredients Asia Pacific Group 2022 Revenue: $144M Core Areas of Focus
Slide 9: Color Group
Color Group Global market leader Natural color innovator Excellent innovation & applications expertise 9
Slide 10: Color Overview
Color Overview 2022 Revenue: $604M Food and 73% of Segment Revenue Pharmaceutical LC Revenue Change* • Market trend toward natural colors in food and beverage Q4 ’22 +14.9% • Unique value proposition for Pharmaceutical customers includes YTD ’22 +16.9% colors, flavors, coatings, and extracts Persona
Slide 11: Flavors & Extracts Group
Flavors & Extracts Group Broad product offering Unique ability to service global, regional, and local customers Leading technology platforms Outstanding applications expertise 11
Slide 12: Flavors & Extracts Overview
Flavors & Extracts Overview 2022 Revenue: $738M Flavors, Extracts, 67% of Segment Revenue and Flavor LC Revenue Change* • Opportunities for on trend products with extracts, taste modulation, Q4 ’22 +11.0% and natural flavors Ingredients YTD ’22 +12.6% Natural 33% of Segment Revenue Ingredients LC Re
Slide 13: Asia Pacific Group
Asia Pacific Group Portfolio of food and beverage flavors and colors R&D centers in key strategic markets to support local and regional customer base Ability to deliver localized solutions and technology platforms 13
Slide 14: Asia Pacific Overview
Asia Pacific Overview 2022 revenue of $144 million and operating income of $29 million Sensient’s sales of flavors and colors for Food and Pharmaceutical are managed on a geographic basis and reported as a separate segment Manufacturing capabilities in Australia, New Zealand, China, Japan, Philippin
Slide 15: 2022 Q4 Segment Results
2022 Q4 Segment Results Local Currency Adjusted Revenue* Local Currency Adjusted* Commentary: Q4 YTD Color Group reported higher revenue in the quarter due to pricing actions and volume growth. Operating income was up due Color +11.9% +15.0% to pricing actions and volume growth, partially offset by
Slide 16: 2022 Q4 Consolidated Results
2022 Q4 Consolidated Results Q4 YTD Local Currency Adjusted Revenue* +5.9% +9.7% Local Currency Adjusted Operating Income* (1.7%) +12.5% Local Currency Adjusted Diluted EPS* (6.8%) +9.9% Local Currency Adjusted EBITDA* +0.3% +12.8% Q4 consolidated local currency adjusted revenue increased due to pri
Slide 17: Capital Allocation
Capital Allocation $250 $200 $31 $- Prioritize ROI capital projects $118 $14 DOLLARS IN MILLIONS $51 $23 $150 $87 $61 Maintain financial flexibility to pursue M&A $57 $79 $100 $52 $39 $67 Excess capital returned to shareholders $50 $77 through dividend and opportunistic share $62 $66 $69 $43 repurch
Slide 18: 2023 Financial Outlook
2023 Financial Outlook Metric Guidance Comments Local Currency Revenue* Mid-single digit growth Adjusted Local Currency EBITDA* Mid-to-high single digit growth • Excludes the impact of share-based stock compensation • FX headwind in early 2023, but moderately favorable for the full year Diluted EPS
Slide 19: Why Invest?
Why Invest? Strong competitive position Defensible and ‘sticky’ business (& low portion of customer costs) Global presence Exposure to stable and growing markets Focused on improving returns and on growth 19
Slide 20: Appendix
APPENDIX* *Amounts in thousands, except percentages and per share amounts
Slide 21: ESG Information
Click here to access our ESG Information Sensient is committed to the principles of sound environmental stewardship and the responsible and sustainable use of energy and natural resources. • Long-term goals to reduce Energy, Water, and Hazardous Waste intensity Environmental • Seed-to-shelf program
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended Three Months Ended Year Ended Year Ended December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Revenue (GAAP) $ 348,736 $ 340,448 $ 1,437,039 $ 1,380,264 Revenue of the divested product lines - (663) - (30,062) Adjusted revenue $ 348,7
Slide 23: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended December 31, 2022 Year Ended December 31, 2022 Foreign Adjusted Foreign Adjusted Exchange Local Exchange Local Revenue Total Rates Adjustments* Currency Total Rates Adjustments* Currency Flavors & Extracts 0.8% (1.8%) (0.1%) 2.7% (0.2%) (2.2%)
Slide 24: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended December 31, 2022 Year Ended December 31, 2022 Foreign Foreign Exchange Local Exchange Local Revenue Total Rates Currency Total Rates Currency Flavors, Extracts and Flavor Ingredients 8.2% (2.8%) 11.0% 9.3% (3.3%) 12.6% Natural Ingredients (10.
Slide 25: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Results by Segment Three Months Ended December 31, Adjusted Adjusted Revenue 2022 Adjustments* 2022 2021 Adjustments* 2021 Flavors & Extracts $ 178,893 $ - $ 178,893 $ 177,448 $ (221) $ 177,227 Color 147,842 - 147,842 137,104 (442) 136,662 Asia Pacific 34,567 - 3
Slide 26: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Results by Segment Year Ended December 31, Adjusted Adjusted Revenue 2022 Adjustments* 2022 2021 Adjustments* 2021 Flavors & Extracts $ 738,003 $ - $ 738,003 $ 739,427 $ (27,837) $ 711,590 Color 604,017 - 604,017 545,270 (2,080) 543,190 Asia Pacific 143,581 - 143
Slide 27: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended December 31, Year Ended December 31, 2022 2021 % Change 2022 2021 % Change Operating income (GAAP) $ 41,225 $ 40,420 2.0% $ 196,751 $ 170,028 15.7% Depreciation and amortization 13,205 13,223 52,467 52,051 Depreciation and amortization, diveste
Slide 28: Sensient
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