EX-99.2 3 brhc20052065_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2
First Quarter 2023 Investor Presentation

FORWARD-LOOKING STATEMENTS 2 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 involve known and unknown risks, uncertainties and other factors concerning the Company’s operations and business environment. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements and that could adversely affect the Company’s future financial performance include the following: the Company’s ability to manage economic and capital market conditions and the impact of recessions and economic downturns; the impact of macroeconomic and geopolitical volatility, including inflation and shortages impacting the availability and cost of raw materials, energy, and other supplies; the availability and cost of labor, logistics, and transportation; the impact and uncertainty created by the COVID-19 pandemic and efforts to manage it on the global economy, including, but not limited to, its effects on our employees, facilities, customers, and suppliers, governmental regulations and restrictions, and general economic conditions; the uncertain impacts of the ongoing conflict between Russia and Ukraine on our supply chain, input costs, including energy and transportation, and on general economic conditions; the pace and nature of new product introductions by the Company and the Company’s customers; the Company’s ability to anticipate and respond to changing consumer preferences and changing technologies; the Company’s ability to successfully implement its growth strategies; the outcome of the Company’s various productivity-improvement and cost-reduction efforts, acquisition and divestiture activities, and operational improvement plan; industry, regulatory, legal, and economic factors related to the Company’s domestic and international business; the effects of tariffs, trade barriers, and disputes; growth in markets for products in which the Company competes; industry and customer acceptance of price increases; actions by competitors; currency exchange rate fluctuations; and other factors included in “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, and in other documents that the Company files with the SEC. The risks and uncertainties identified above are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company or that it currently believes to be immaterial also may adversely affect the Company. Should any known or unknown risks and uncertainties develop into actual events, these developments could have material adverse effects on our business, financial condition, and results of operations. This presentation contains time-sensitive information that reflects management’s best analysis only as of the date of this presentation. Except to the extent required by applicable laws, the Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied herein will not be realized.

NON-GAAP FINANCIAL MEASURES 2 Within this document, the Company reports certain non-GAAP financial measures, including: (1) percentage changes in revenue, operating income, diluted earnings per share, and adjusted EBITDA on a local currency basis (which eliminate the effects that result from translating its international operations into U.S. dollars), and (2) adjusted EBITDA (which excludes depreciation and amortization expense, and non-cash share based compensation expense). The Company has included each of these non-GAAP measures in order to provide additional information regarding the underlying operating results and comparable period-over-period performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures should not be considered in isolation. Rather, they should be considered together with GAAP measures and the rest of the information included in this presentation and the Company’s SEC filings. Management internally reviews each of these non-GAAP measures to evaluate performance on a comparative period-to-period basis and to gain additional insight into underlying operating and performance trends. The Company believes this information can be beneficial to investors for these same purposes. These non-GAAP measures may not be comparable to similarly titled measures used by other companies. Refer to “Non-GAAP Financial Measures” at the end of this presentation for reconciliations and additional information.

Sensient Overview 2 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 ability to service global, regional, and local customers

Innovative Technologies Creating Unique Solutions 2 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

Focusing our portfolio and strengthening our commitment to the end markets 2 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 2021 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 integrated natural color and extracts company, in October 2022

Natural solutions provider focused on consistent and sustainable supply chain 2 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, authentic, high-quality natural products through Sensient’s CertasureTM program

8 Global Revenue by Group 2022 Global Revenues include intercompany sales which are eliminated on a consolidated basis. 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: Flavors and Colors for food and beverage

9 Global market leader Natural color innovator Excellent innovation & applications expertise Color Group

10 Color Overview Food and Pharmaceutical 73% of 2022 Segment Revenue LC Revenue Change* Q1 ’23 +16.2% Market trend toward natural colors in food and beverage Unique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts Personal Care 27% of 2022 Segment Revenue LC Revenue Q1 ’23 Change* • Demand for innovative products with multiple benefits (2.9%) • Product line includes dyes, pigments, formulation aides and ingredients for color cosmetics, hair care, and skin care 2022 Revenue: $604M *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document.
10 Color Overview Food and Pharmaceutical 73% of 2022 Segment Revenue LC Revenue Change* Q1 ’23 +16.2% Market trend toward natural colors in food and beverage Unique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts Personal Care 27% of 2022 Segment Revenue 2022 Revenue: $604M *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document. LC Revenue Change* Q1 ’23 (+2.9%) Demand for innovative products with multiple benefits Product line includes dyes, pigments, formulation aides and ingredients for color cosmetics, hair care, and skin care
10 Color Overview Food and Pharmaceutical 73% of 2022 Segment Revenue LC Revenue Change* Q1 ’23 +16.2% Market trend toward natural colors in food and beverage Unique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts Personal Care 27% of 2022 Segment Revenue 2022 Revenue: $604M *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document. LC Revenue Change* Q1 ’23 (+2.9%) Demand for innovative products with multiple benefits Product line includes dyes, pigments, formulation aides and ingredients for color cosmetics, hair care, and skin care
10 Color Overview Food and Pharmaceutical 73% of 2022 Segment Revenue LC Revenue Change* Q1 ’23 +16.2% Market trend toward natural colors in food and beverage Unique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts Personal Care 27% of 2022 Segment Revenue 2022 Revenue: $604M *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document. LC Revenue Change* Q1 ’23 (+2.9%) Demand for innovative products with multiple benefits Product line includes dyes, pigments, formulation aides and ingredients for color cosmetics, hair care, and skin care
10 Color Overview Food and Pharmaceutical 73% of 2022 Segment Revenue LC Revenue Change* Q1 ’23 +16.2% Market trend toward natural colors in food and beverage Unique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts Personal Care 27% of 2022 Segment Revenue 2022 Revenue: $604M *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document. LC Revenue Change* Q1 ’23 (+2.9%) Demand for innovative products with multiple benefits Product line includes dyes, pigments, formulation aides and ingredients for color cosmetics, hair care, and skin care
10 Color Overview Food and Pharmaceutical 73% of 2022 Segment Revenue LC Revenue Change* Q1 ’23 +16.2% Market trend toward natural colors in food and beverage Unique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts Personal Care 27% of 2022 Segment Revenue 2022 Revenue: $604M *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document. LC Revenue Change* Q1 ’23 (+2.9%) Demand for innovative products with multiple benefits Product line includes dyes, pigments, formulation aides and ingredients for color cosmetics, hair care, and skin care

10 Color Overview Food and Pharmaceutical 73% of 2022 Segment Revenue LC Revenue Change* Q1 ’23 +16.2% Market trend toward natural colors in food and beverage Unique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts Personal Care 27% of 2022 Segment Revenue 2022 Revenue: $604M *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document. LC Revenue Change* Q1 ’23 (+2.9%) Demand for innovative products with multiple benefits Product line includes dyes, pigments, formulation aides and ingredients for color cosmetics, hair care, and skin care
10 Color Overview Food and Pharmaceutical 73% of 2022 Segment Revenue LC Revenue Change* Q1 ’23 +16.2% Market trend toward natural colors in food and beverage Unique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts Personal Care 27% of 2022 Segment Revenue 2022 Revenue: $604M *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document. LC Revenue Change* Q1 ’23 (+2.9%) Demand for innovative products with multiple benefits Product line includes dyes, pigments, formulation aides and ingredients for color cosmetics, hair care, and skin care

11 Flavors & Extracts Group Broad product offering Unique ability to service global, regional, and local customers Leading technology platforms Outstanding applications expertise

12 Flavors & Extracts Overview Flavors, Extracts, and Flavor Ingredients 67% of 2022 Segment Revenue LC Revenue Change* Q1 ’23 (0.1%) Opportunities for on trend products with extracts, taste modulation, and natural flavors Natural Ingredients 33% of 2022 Segment Revenue LC Revenue Change* Q1 ’23 (3.8%) Leading provider of dehydrated onion, garlic, and other products 2022 Revenue: $738M *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document.

13 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

14 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, Philippines, Thailand, and India Q1 2023 local currency revenue* and operating profit* improved 14.6% and 18.0%, respectively *Local currency revenue and local currency operating profit are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document. Asia Pacific Overview

15 2023 Q1 Segment Results Flavors & Extracts Group first quarter revenue decreased due to lower volumes, partially offset by pricing actions. Lower volumes in the Group were primarily due to customer destocking. Operating income declined in the quarter primarily due to higher input costs and lower volumes, partially offset by pricing actions. Asia Pacific Group first quarter revenue and operating income increased as a result of higher volumes and pricing actions across the Group. Local Currency Operating Income* Q1 Color +6.3% Flavors & Extracts (19.5%) Asia Pacific +18.0% Local Currency Revenue* Local Currency* Commentary: Q1 Color Group reported higher revenue in the quarter due to pricing actions across the Group and volume growth in Food & Pharmaceutical, partially offset by lower Personal Care volumes. Operating income was up due to pricing actions across the Group and volume growth within Food & Pharmaceutical, partially offset by lower Personal Care volumes. Color +10.0% Flavors & Extracts (1.3%) Asia Pacific +14.6% * Local-currency (LC) revenue and operating income are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document.

16 2023 Q1 Consolidated Results Q1 Local Currency Revenue* +5.2% Local Currency Operating Income* (1.5%) Local Currency Diluted EPS* (6.8%) Local Currency Adjusted EBITDA* (2.0%) Q1 consolidated local currency revenue increased due to pricing actions across all groups and continued volume growth in Food and Pharmaceutical in the Color Group. These increases were partially offset by lower volumes in Personal Care in the Color Group and across the Flavor Group. Q1 consolidated local currency operating income declined despite growth in the Colors and Asia Pacific Groups. Lower volumes and higher input costs contributed to the decline in operating income. Q1 local currency diluted EPS declined as a result of the operating income headwinds and higher interest expense. * Local-currency (LC) revenue, operating income, diluted EPS, and adjusted EBITDA are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document.

Capital Allocation rs re DOLLARS IN MILLIONS $250 $200 $31 $150 $51 $87 $100 $57 $39 $50 $77 $62 $- 2018 2019 Share Repurchase Prioritize ROI capital projects $118 $14 $23 Maintain financial flexibility to pursue $61 M&A $79 $52 $67 Excess capital returned to shareholde through dividend and opportunistic sha $66 $69 $43 repurchases 2020 2021 2022 Acquisitions Dividends Debt Repayments Capital Expenditure s 17

2023 Financial Outlook 17 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 Diluted EPS (GAAP) Flat to low-single digit growth FX modestly favorable for the full year Higher interest rates and a higher tax rate Local Currency Diluted EPS* Flat to low-single digit growth The 2023 Local Currency Revenue, Diluted EPS, and adjusted EBITDA growth rates for 2023 are compared to 2022 Revenue, adjusted Diluted EPS, and adjusted EBITDA, respectively. Local currency Revenue, adjusted diluted EPS, and adjusted EBITDA are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document.

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 17

APPENDIX* *Amounts in thousands, except percentages and per share amounts

ESG Information Environmental 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 Seed-to-shelf program focused on strengthening a sustainable supply chain Emphasis on implementing sustainability from the design stage. Chemical Risk Strategy implemented to identify and reduce risk in our portfolio Social Sensient strives to conduct business in an ethical manner and to make a positive contribution to society through our product offerings and business activities. Sensient’s Code of Conduct and Supplier Code of Conduct require strong ethical behavior, fair employment practices, and strict human rights practices and product safety standards Robust product, environmental, and raw material safety programs designed to exceed industry standards Raw material traceability and sustainability programs Support for our local communities through volunteerism, financial donations, sponsorships, and employee education opportunities Governance Sensient is committed to maintaining the highest standards of professional conduct and strong corporate governance practices through our comprehensive corporate governance framework. Board comprised of a majority of independent directors with diverse and accomplished backgrounds Committed to board diversity and refreshment, we were recognized by 50/50 Women on Boards for the eleventh year in a row and we have added eight new directors since 2014. Robust Code of Conduct built on a foundation of ethics, safety and quality, and professionalism resulting in ethical and lawful conduct of our business 25

Non-GAAP Financial Measures 25 Revenue Total Foreign Exchange Rates Local Currency Flavors & Extracts (2.1%) (0.8%) (1.3%) Color 8.6% (1.4%) 10.0% Asia Pacific 9.9% (4.7%) 14.6% Total Revenue 3.8% (1.4%) 5.2% Operating Income Flavors & Extracts (19.6%) (0.1%) (19.5%) Color 4.0% (2.3%) 6.3% Asia Pacific 12.6% (5.4%) 18.0% Corporate & Other (8.7%) (0.1%) (8.6%) Total Operating Income (3.7%) (2.2%) (1.5%) Diluted Earnings Per Share (9.1%) (2.3%) (6.8%) Adjusted EBITDA (3.9%) (1.9%) (2.0%) Three Months Ended March 31, 2023

Non-GAAP Financial Measures (Cont’d) 25 Revenue Total Foreign Exchange Rates Local Currency Flavors, Extracts and Flavor Ingredients (1.3%) (1.2%) (0.1%) Natural Ingredients (3.9%) (0.1%) (3.8%) Flavors & Extracts Group (2.1%) (0.8%) (1.3%) Food and Pharmaceutical 15.1% (1.1%) 16.2% Personal Care (5.4%) (2.5%) (2.9%) Color Group 8.6% (1.4%) 10.0% Asia Pacific Group 9.9% (4.7%) 14.6% Total revenue 3.8% (1.4%) 5.2% Three Months Ended March 31, 2023

Non-GAAP Financial Measures (Cont’d) 25 2023 2022 % Change Operating income (GAAP) $ 50,838 $ 52,789 (3.7%) Depreciation and amortization 14,150 13,056 Share-based compensation expense 2,267 4,163 Adjusted EBITDA $ 67,255 $ 70,008 (3.9%) Three Months Ended March 31,
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