EX-99.2 3 ef20027679_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2
First Quarter 2024 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 “2024 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 general business, economic, and capital market conditions, including actions taken by customers in response to such 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, disruptions and delays in the Company’s supply chain, and the conflicts between Russia and Ukraine and Israel and Hamas and other parties in the Middle East; the availability and cost of labor, logistics, and transportation; 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 portfolio optimization 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; the Company’s ability to enhance its innovation efforts and drive cost efficiencies; 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, 2023, 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) adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share (which exclude restructuring and other costs, including the Portfolio Optimization Plan costs), (2) percentage changes in revenue, operating income, and diluted earnings per share on an adjusted local currency basis (which eliminate the effects that result from translating its international operations into U.S. dollars and restructuring and other costs, including the Portfolio Optimization Plan costs), and (3) adjusted EBITDA (which eliminates restructuring and other costs, including the Portfolio Optimization Plan costs, and non-cash share based compensation expense). The Company has included each of these non-GAAP measures in order to provide additional information regarding our underlying operating results and comparable year-over-year 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 report. 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, and the Company believes the information can be beneficial to investors for the same purposes. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

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

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

Committed to ongoing portfolio optimization to drive margin improvement 2 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 Portfolio Optimization Plan initiated in 2023 and is expected to deliver approximately $8 million to $10 million of annual savings following plan completion in 2025

8 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: Flavors and Colors for food and beverage Global Revenue by Group 2023 Global Revenues include intercompany sales which are eliminated on a consolidated basis.

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

10 Color Overview Food and Pharmaceutical 74% of 2023 Segment Revenue LC Revenue Change* Q1 ’24 (2.7%) Market trend toward natural colors in food and beverage Unique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts Personal Care 26% of 2023 Segment Revenue LC Revenue Change* Q1 ’24 0.9% Demand for innovative and sustainable products with multiple benefits Product line includes dyes, pigments, formulation aides and ingredients for color cosmetics, hair care, and skin care 2023 Revenue: $608M *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document.

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 2023 Segment Revenue LC Revenue Change* Q1 ’24 (1.5%) Opportunities for on trend products with extracts, taste modulation, and natural flavors Natural Ingredients 33% of 2023 Segment Revenue LC Revenue Change* Q1 ’24 +26.4% Leading provider of dehydrated onion, garlic, and other products 2023 Revenue: $741M *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 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, Philippines, Thailand, and India Q1 2024 local currency revenue* was up 4.1% and operating profit* declined 0.6% *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 2024 Q1 Segment Results Color Group reported lower revenue in the quarter due to lower volumes related to end market declines in certain product categories and modest customer destocking. Volume growth as a result of new sales wins and modest pricing partially offset these declines. Operating income declined due to lower volumes and higher input costs. Flavors & Extracts Group first quarter revenue growth was driven by volume growth in natural ingredients and certain flavor product lines. Operating income improved in the quarter due to higher volumes; however, this was partially offset due to higher costs on certain agricultural inputs and raw materials. Asia Pacific Group first quarter revenue increased primarily due to higher volumes. Operating income declined as a result of higher input costs and sales mix. Local Currency Revenue* Local Currency* Commentary: Q1 Color (1.7%) Flavors & Extracts +6.9% Asia Pacific +4.1% Local Currency Operating Income* Q1 Color (1.8%) Flavors & Extracts +6.3% Asia Pacific (0.6%) * 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 2024 Q1 Consolidated Results Q1 Local Currency Revenue* +3.8% Local Currency Adjusted Operating Income* +2.6% Local Currency Adjusted Diluted EPS* (1.3%) Local Currency Adjusted EBITDA* +2.2% Q1 consolidated local currency revenue increased due to volume growth in the Flavors & Extracts and Asia Pacific groups and modest pricing favorability. Q1 consolidated local currency adjusted operating income grew as a result of higher volumes; however, this was partially offset by continued higher input costs in certain areas and sales mix. Q1 local currency adjusted diluted EPS declined as a result of higher interest and tax expense. * Local-currency (LC) revenue, adjusted operating income, adjusted 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 Prioritize ROI capital projects Excess free cash flow to be used for debt reduction Maintain prudent level of leverage to support Sensient’s long-standing dividend and opportunistic M&A and share repurchases $43 $62 $66 $67 $69 $69 $39 $52 $61 $79 $88 $14 $23 $87 $118 $- $50 $100 $150 $200 $250 2019 2020 2021 2022 2023 DOLLARS IN MILLIONS Share Repurchase Acquisitions Dividends Debt Repayments Capital Expenditures 17

2024 Financial Outlook* 17 Metric Revised Guidance Previous Guidance Comments Local Currency Revenue** Mid-single-digit growth Low to mid-single- digit growth Local Currency Adjusted EBITDA** Mid-single-digit growth Low to mid-single- digit growth Excludes the impact of share-based stock compensation and the costs related to the Portfolio Optimization Plan Diluted EPS (GAAP) No Change $2.80 to $2.90 Local Currency Adjusted Diluted EPS** No Change Low to mid-single- digit growth Excludes the impact of the costs related to the Portfolio Optimization Plan * Represents outlook provided in our earnings release on April 26, 2024, and does not constitute an update or reissuance as of any later date. ** The local currency revenue, adjusted diluted EPS, and adjusted EBITDA growth rates for 2024 are compared to 2023 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. ** The Portfolio Optimization Plan was approved in the fourth quarter of 2023 to undertake an effort to optimize certain production facilities and improve efficiencies within the Company. The Company expects to incur $40M of costs associated with the plan, of which $30M will be non-cash.

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 emissions intensity, water withdrawal, and landfilled waste 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 risk assessment 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, Sensient has 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 21

Non-GAAP Financial Measures 22 2024 2023 Operating income (GAAP) $ 49,406 $ 50,838 Portfolio Optimization Plan costs – Cost of products sold 107 - Portfolio Optimization Plan costs – Selling and administrative expenses 2,705 - Adjusted operating income $ 52,218 $ 50,838 Net earnings (GAAP) $ 30,940 $ 33,651 Portfolio Optimization Plan costs, before tax 2,812 - Tax impact of Portfolio Optimization Plan costs* (355) - Adjusted net earnings $ 33,397 $ 33,651 Diluted earnings per share (GAAP) $ 0.73 $ 0.80 Portfolio Optimization Plan costs, net of tax 0.06 - Adjusted diluted earnings per share $ 0.79 $ 0.80 * Tax impact adjustments were determined based on the nature of the underlying Non-GAAP adjustments and their relevant jurisdictional tax rates. Note: Earnings per share calculations may not foot due to rounding differences. Three Months Ended March 31,

Non-GAAP Financial Measures (Cont’d) 23 Revenue Total Foreign Exchange Rates Adjustments* Adjusted Local Currency Flavors & Extracts 8.0% 1.1% N/A 6.9% Color (0.7%) 1.0% N/A (1.7%) Asia Pacific 0.6% (3.5%) N/A 4.1% Total Revenue 4.2% 0.4% N/A 3.8% Operating Income Flavors & Extracts 6.8% 0.5% 0.0% 6.3% Color (0.6%) 1.2% 0.0% (1.8%) Asia Pacific (5.0%) (4.4%) 0.0% (0.6%) Corporate & Other 18.1% 0.0% 22.5% (4.4%) Total Operating Income (2.8%) 0.2% (5.6%) 2.6% Diluted Earnings Per Share (8.8%) 0.0% (7.5%) (1.3%) Adjusted EBITDA 2.5% 0.3% N/A 2.2% Three Months Ended March 31, 2024 * Adjustments consist of Portfolio Optimization Plan costs.

Non-GAAP Financial Measures (Cont’d) 21 Three Months Ended March 31, 2024 Revenue Total Foreign Exchange Rates Local Currency Flavors, Extracts and Flavor Ingredients 0.0% 1.5% (1.5%) Natural Ingredients 26.4% 0.0% 26.4% Flavors & Extracts Group 8.0% 1.1% 6.9% Food and Pharmaceutical (1.4%) 1.3% (2.7%) Personal Care 1.3% 0.4% 0.9% Color Group (0.7%) 1.0% (1.7%) Asia Pacific 0.6% (3.5%) 4.1% Total revenue 4.2% 0.4% 3.8%
d March 31,

Non-GAAP Financial Measures (Cont’d) 25 Results by Segment Operating Income 2024 Adjustments* Adjusted 2024 2023 Adjusted Adjustments* 2023 Flavors & Extracts $ 23,678 $ - $ 23,678 $ 22,180 $ - $ 22,180 Color 31,679 - 31,679 31,885 - 31,885 Asia Pacific 8,776 - 8,776 9,241 - 9,241 Corporate & Other (14,727) 2,812 (11,915) (12,468) - (12,468) Consolidated $ 49,406 $ 2,812 $ 52,218 $ 50,838 $ - $ 50,838 * Adjustments consist of Portfolio Optimization Plan costs. Three Months Ended March 31,

Non-GAAP Financial Measures (Cont’d) 26 2024 2023 % Change Operating income (GAAP) $ 49,406 $ 50,838 (2.8%) Depreciation and amortization 14,709 14,150 Share-based compensation expense 1,995 2,267 Portfolio Optimization Plan costs, before tax 2,812 - Adjusted EBITDA $ 68,922 $ 67,255 2.5% Three Months Ended March 31,

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