Slide 1: Fourth Quarter 2023 Investor Presentation
Fourth Quarter 2023 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 “2024 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 operating income, adjusted net earnings, and adjusted diluted earnings per share (which exclude divestiture & other related income and restructuring and other costs, whi
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: 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 7: Committed to ongoing portfolio optimization to drive margin improvement
Committed to ongoing portfolio optimization to drive margin improvement Expanded flavor portfolio and strengthened technical solutions capabilities through the acquisition of Flavor Solutions, Inc. in July 2021 Strengthened extensive natural color portfolio by acquiring Endemix, a vertically integra
Slide 8: Global Revenue by Group
Global Revenue by Group Color Group 2023 Revenue: $608M Core Areas of Focus: Food and Pharmaceutical Colors and Personal Care Flavors & Extracts Group 2023 Revenue: $741M Core Areas of Focus: Natural Flavors, Extracts and Natural Ingredients Asia Pacific Group 2023 Revenue: $146M 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 2023 Revenue: $608M Food and 74% of 2023 Segment Revenue Pharmaceutical LC Revenue Change* • Market trend toward natural colors in food and beverage Q4 ’23 (5.7%) • Unique value proposition for Pharmaceutical customers includes YTD ’23 +1.7% colors, flavors, coatings, and extracts Per
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 2023 Revenue: $741M Flavors, Extracts, 67% of 2023 Segment Revenue and Flavor LC Revenue Change* • Opportunities for on trend products with extracts, taste modulation, Q4 ’23 (6.5%) and natural flavors Ingredients YTD ’23 (2.2%) Natural 33% of 2023 Segment Revenue Ingredi
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 2023 revenue of $146 million and operating income of $30.8 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, Philipp
Slide 15: 2023 Q4 Segment Results
2023 Q4 Segment Results Local Currency Revenue* Local Currency* Commentary: Q4 YTD Color Group reported lower revenue in the quarter due to lower volumes related to customer destocking and ongoing end market declines in certain Color (7.0%) (0.9%) product categories. Pricing and volume growth as a r
Slide 16: 2023 Q4 Consolidated Results
2023 Q4 Consolidated Results Q4 YTD Local Currency Revenue* (1.8%) +0.3% Local Currency Adjusted Operating Income* (9.6%) (6.8%) Local Currency Adjusted Diluted EPS* (23.4%) (14.0%) Local Currency Adjusted EBITDA* (8.5%) (5.9%) Q4 consolidated local currency revenue declined as lower volumes, driven
Slide 17: Capital Allocation
Capital Allocation $250 $200 Prioritize ROI capital projects $118 $14 DOLLARS IN MILLIONS $150 $23 Excess free cash flow to be used for $87 $61 debt reduction $79 $88 $100 $52 $39 $67 Maintain prudent level of leverage to $50 support Sensient’s long-standing $62 $66 $69 $69 dividend and opportunisti
Slide 18: 2024 Financial Outlook
2024 Financial Outlook* Metric Guidance Comments Low-to-Mid-single- Local Currency Revenue** digit growth • Excludes the impact of share-based stock Low-to-Mid-single- Local Currency Adjusted EBITDA** compensation and the costs related to the digit growth Portfolio Optimization Plan Diluted EPS (GAA
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
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 emissions intensity, water withdrawal, and landfilled waste Environmental • Seed-to-shelf program focused on
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures 22
Slide 23: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) 23
Slide 24: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) 24
Slide 25: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) 25
Slide 26: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) 26
Slide 27: Sensient
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