UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

February 10, 2023
(Date of Report/Date of earliest event reported)

SENSIENT TECHNOLOGIES CORPORATION
(Exact name of registrant as specified in its charter)

Wisconsin
001-07626
39-0561070
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

777 East Wisconsin Avenue
Milwaukee, Wisconsin 53202-5304
(Address and zip code of principal executive offices)

(414) 271-6755
(Registrant’s telephone number, including area code)

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, par value $0.10 per share
SXT
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02
Results of Operations and Financial Condition.

Sensient Technologies Corporation (the “Company”) issued a press release on February 10, 2023, disclosing its results of operations for its quarter and year ended December 31, 2022, and its financial condition at that date. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information contained in this Item 2.02 (including Exhibit 99.1) is intended to be furnished under Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act.

Item 7.01
Regulation FD Disclosure.

On February 10, 2023, the Company also posted an updated investor presentation for its quarter and year ended December 31, 2022, on the “Investor Information” section of its website.  A copy of the investor presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K.

The information contained in this Item 7.01 (including Exhibit 99.2) is intended to be furnished under Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act.

Item 9.01
Financial Statements and Exhibits.


(d)
Exhibits. The following exhibits are furnished with this Current Report on Form 8-K:

EXHIBIT INDEX

Exhibit
Number
Description
Sensient Technologies Corporation Earnings Press Release for the Quarter and Year Ended December 31, 2022.
Sensient Technologies Corporation Investor Presentation – Q4 2022.
104
Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
SENSIENT TECHNOLOGIES
 
  CORPORATION  
     
 
By:
/s/ John J. Manning
 
       
 
Name:
John J. Manning
 
       
 
Title:
Senior Vice President, General Counsel, and Secretary
 
       
 
Date:
February 10, 2023
 




Exhibit 99.1

Contact:
Amy Agallar
 
(414) 347-3706

Sensient Technologies Corporation
Reports Results for the Quarter Ended December 31, 2022

Full Year 2022 Reported Consolidated Revenue Growth of 4.1%
Full Year 2022 Adjusted Local Currency Revenue Growth of 9.7%

Full Year 2022 Reported Operating Profit Growth of 15.7%
Full Year 2022 Adjusted Local Currency Operating Profit Growth of 12.5%

MILWAUKEE— February 10, 2023 Sensient Technologies Corporation (NYSE: SXT) reported consolidated revenue of $348.7 million in this year’s fourth quarter compared to $340.4 million in last year’s fourth quarter. Reported operating income in the fourth quarter of 2022 was $41.2 million compared to $40.4 million in the fourth quarter of 2021. Reported diluted earnings per share was 69 cents in the fourth quarter of 2022 compared to 65 cents in the fourth quarter of 2021. Foreign currency translation decreased revenue by approximately 3% and earnings per share by approximately 6% in the current quarter.

The 2022 fourth quarter reported results included income related to an earnout payment received in connection with the divestiture of our yogurt fruit preparations business, which in total increased 2022 fourth quarter net earnings by $1.9 million ($0.04 per diluted share). The 2021 fourth quarter reported results include divestiture & other related costs and operational improvement plan costs, which in total decreased 2021 fourth quarter net earnings by $3.0 million ($0.07 per diluted share). The 2021 fourth quarter reported results also include the operations of the divested product lines, which were not material to the results in the fourth quarter of 2021. The adjustments to our reported results are described in more detail under “Reconciliation of Non-GAAP Amounts” at the end of this release.

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Sensient Technologies Corporation
Page 2
Earnings Release – Quarter Ended December 31, 2022
 
February 10, 2023
 
BUSINESS REVIEW

   
Reported
 
Revenue
 
Quarter
   
Year-to-Date
 
Flavors & Extracts
   
0.8
%
   
-0.2
%
Color
   
7.8
%
   
10.8
%
Asia Pacific
   
-3.3
%
   
6.1
%
Total Revenue
   
2.4
%
   
4.1
%

   
Adjusted
 
   
Local Currency (1)
 
Revenue
 
Quarter
   
Year-to-Date
 
Flavors & Extracts
   
2.7
%
   
5.8
%
Color
   
11.9
%
   
15.0
%
Asia Pacific
   
6.4
%
   
14.4
%
Total Revenue
   
5.9
%
   
9.7
%
                 
(1) Adjusted local currency percentage changes are described in more detail in the "Reconciliation of Non-GAAP Amounts" at the end of this release.
        

The Flavors & Extracts Group reported fourth quarter revenue of $178.9 million compared to $177.4 million in last year’s fourth quarter, an increase of 0.8%. Adjusted local currency revenue increased 2.7% in the quarter. The Group benefited from pricing across all of its product lines. Segment operating income was $21.5 million in the current quarter compared to $21.9 million reported in the comparable period last year, a decrease of 2.0%. Adjusted local currency operating income decreased 4.1% in the quarter. The lower operating income was primarily due to higher input costs and lower volumes, partially offset by favorable pricing. Foreign currency translation decreased segment revenue by approximately 2% and was not material on segment operating income in the quarter.

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Sensient Technologies Corporation
Page 3
Earnings Release – Quarter Ended December 31, 2022
 
February 10, 2023
 
The Color Group reported revenue of $147.8 million in the quarter compared to $137.1 million in last year’s fourth quarter, an increase of 7.8%. Adjusted local currency revenue increased 11.9% in the quarter. The Group benefited from higher pricing and higher volumes. Segment operating income was $24.6 million in the quarter compared to $24.1 million in last year’s comparable period, an increase of 2.0%. Adjusted local currency operating income increased 7.8% compared to the prior year’s fourth quarter. The higher operating income is primarily a result of the higher volumes and favorable pricing, partially offset by higher input costs. Foreign currency translation decreased segment revenue by approximately 4% and segment operating income by approximately 6% in the quarter.

The Asia Pacific Group reported revenue of $34.6 million in the quarter compared to $35.7 million in last year’s fourth quarter, a decrease of 3.3%, primarily due to foreign currency translation. Adjusted local currency revenue increased 6.4% in the quarter, primarily as a result of higher pricing. Segment operating income was $6.6 million in the quarter compared to $7.2 million in last year’s fourth quarter, a decrease of 7.9%, primarily due to foreign currency translation. Adjusted local currency operating income increased 3.6% in the quarter, primarily as a result of the higher pricing, partially offset by higher input costs. Foreign currency translation decreased segment revenue and operating income by approximately 10% and 12%, respectively, in the quarter.

Corporate & Other reported an operating loss of $11.5 million in the current quarter compared to $12.8 million in last year’s fourth quarter, a decrease of 10.5%. In the fourth quarter of 2022, the Company recorded $2.5 million of divestiture related income related to an earnout payment received in connection with the divestiture of our yogurt fruit preparations business. The fourth quarter results of 2021 include $0.8 million of divestiture and operational improvement plan costs. Adjusted local currency operating expenses for Corporate & Other increased 16.1% in the quarter primarily due to higher performance-based compensation.

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Sensient Technologies Corporation
Page 4
Earnings Release – Quarter Ended December 31, 2022
 
February 10, 2023
 
2023 OUTLOOK

Sensient expects 2023 full year GAAP diluted earnings per share to be flat to low-single digit growth compared to our 2022 reported GAAP diluted earnings per share of $3.34.

The Company expects 2023 revenue to grow at a mid-single digit rate on a local currency basis compared to the Company’s 2022 revenue. The Company expects 2023 diluted earnings per share to be flat to low-single digit growth on a local currency basis compared to the Company’s 2022 adjusted diluted earnings per share(2) of $3.29. The Company expects 2023 adjusted EBITDA(2) to grow at a mid-to-high single digit rate on a local currency basis compared to the Company’s 2022 adjusted EBITDA(2).

The Company expects its 2023 diluted earnings per share to be impacted by higher interest rates and a higher tax rate. The Company currently expects interest expense to increase by approximately $11 million ($0.20 per diluted share) in 2023 compared to the Company’s 2022 full year interest expense of $14.5 million. The Company also expects its full year 2023 tax rate to be approximately 25%.

 Based on current exchange rates, the Company expects foreign exchange rates to be a headwind for the beginning of the year, and modestly favorable for the full year.

The Company’s guidance is based on current conditions and economic and market trends in the markets in which the Company operates and is subject to various risks and uncertainties as described below.  We do not anticipate any divestiture related costs, operational improvement plan costs, or results of divested business in 2023 at this time.

  (2)
See “Reconciliation of Non-GAAP Amounts” at the end of this release for more information.

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Sensient Technologies Corporation
Page 5
Earnings Release – Quarter Ended December 31, 2022
 
February 10, 2023
 
USE OF NON-GAAP FINANCIAL MEASURES

The Company’s non-GAAP financial measures eliminate the impact of certain items, which, depending on the measure, include: currency movements, depreciation and amortization, non-cash share-based compensation, divestiture & other related costs and income, operational improvement plan costs and income, and the results of the divested operations. These measures are provided to enhance the overall understanding of the Company’s performance when viewed together with the GAAP results. Refer to “Reconciliation of Non-GAAP Amounts” at the end of this release.

CONFERENCE CALL

The Company will host a conference call to discuss its 2022 fourth quarter financial results at 8:30 a.m. CST on Friday, February 10, 2023. To participate in the conference call, contact Chorus Call Inc. at (844) 492-3726 or (412) 317-1078, and ask to join the Sensient Technologies Corporation conference call. Alternatively, the call can be accessed by using the webcast link that is available on the Investor Information section of the Company’s web site at www.sensient.com.

A replay of the call will be available one hour after the end of the conference call through February 17, 2023, by calling (877) 344-7529 and referring to conference identification number 7722006. An audio replay and written transcript of the call will also be posted on the Investor Information section of the Company’s web site at www.sensient.com on or after February 14, 2023.

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Sensient Technologies Corporation
Page 6
Earnings Release – Quarter Ended December 31, 2022
 
February 10, 2023
 
This release contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including under “2023 Outlook” above. 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, 2021, as updated and supplemented by the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, and in other documents that the Company files with the SEC, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 that will be filed by March 1, 2023. 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 release contains time-sensitive information that reflects management’s best analysis only as of the date of this release. 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.

ABOUT SENSIENT TECHNOLOGIES

Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors, and other specialty ingredients.  Sensient uses advanced technologies and robust global supply chain capabilities to develop specialized solutions for food and beverages, as well as products that serve the pharmaceutical, nutraceutical, and personal care industries. Sensient’s customers range in size from small entrepreneurial businesses to major international manufacturers representing some of the world’s best-known brands.  Sensient is headquartered in Milwaukee, Wisconsin.

www.sensient.com

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Sensient Technologies Corporation
 Page 7
(In thousands, except percentages and per share amounts)
 
(Unaudited)
 

Consolidated Statements of Earnings
 
Three Months Ended December 31,
   
Year Ended December 31,
 
                                     
   
2022
   
2021
   
% Change
   
2022
   
2021
   
% Change
 
                                     
Revenue
 
$
348,736
   
$
340,448
     
2.4
%
 
$
1,437,039
   
$
1,380,264
     
4.1
%
                                                 
Cost of products sold
   
237,232
     
228,065
     
4.0
%
   
947,928
     
925,603
     
2.4
%
Selling and administrative expenses
   
70,279
     
71,963
     
(2.3
%)
   
292,360
     
284,633
     
2.7
%
                                                 
Operating income
   
41,225
     
40,420
     
2.0
%
   
196,751
     
170,028
     
15.7
%
Interest expense
   
4,799
     
2,752
             
14,547
     
12,544
         
                                                 
Earnings before income taxes
   
36,426
     
37,668
             
182,204
     
157,484
         
Income taxes
   
7,305
     
10,439
             
41,317
     
38,739
         
                                                 
Net earnings
 
$
29,121
   
$
27,229
     
6.9
%
 
$
140,887
   
$
118,745
     
18.6
%
                                                 
Earnings per share of common stock:
                                               
Basic
 
$
0.70
   
$
0.65
           
$
3.36
   
$
2.82
         
Diluted
 
$
0.69
   
$
0.65
           
$
3.34
   
$
2.81
         
                                                 
Average common shares outstanding:
                                               
Basic
   
41,896
     
41,890
             
41,888
     
42,077
         
Diluted
   
42,255
     
42,173
             
42,213
     
42,258
         

Results by Segment
 
Three Months Ended December 31,
   
Year Ended December 31,
 
                                     
Revenue
 
2022
   
2021
   
% Change
   
2022
   
2021
   
% Change
 
                                     
Flavors & Extracts
 
$
178,893
   
$
177,448
     
0.8
%
 
$
738,003
   
$
739,427
     
(0.2
%)
Color
   
147,842
     
137,104
     
7.8
%
   
604,017
     
545,270
     
10.8
%
Asia Pacific
   
34,567
     
35,749
     
(3.3
%)
   
143,581
     
135,348
     
6.1
%
Intersegment elimination
   
(12,566
)
   
(9,853
)
           
(48,562
)
   
(39,781
)
       
                                                 
Consolidated
 
$
348,736
   
$
340,448
     
2.4
%
 
$
1,437,039
   
$
1,380,264
     
4.1
%
                                                 
Operating Income
                                               
                                                 
Flavors & Extracts
 
$
21,495
   
$
21,942
     
(2.0
%)
 
$
105,424
   
$
98,660
     
6.9
%
Color
   
24,584
     
24,113
     
2.0
%
   
114,619
     
103,575
     
10.7
%
Asia Pacific
   
6,615
     
7,184
     
(7.9
%)
   
29,492
     
26,330
     
12.0
%
Corporate & Other
   
(11,469
)
   
(12,819
)
           
(52,784
)
   
(58,537
)
       
                                                 
Consolidated
 
$
41,225
   
$
40,420
     
2.0
%
 
$
196,751
   
$
170,028
     
15.7
%

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Sensient Technologies Corporation
Page 8
(In thousands)
 
(Unaudited)
 

Consolidated Condensed Balance Sheets
 
December 31,
2022
   
December 31,
2021
 
             
Cash and cash equivalents
 
$
20,921
   
$
25,740
 
Trade accounts receivable
   
302,109
     
261,121
 
Inventories
   
564,110
     
411,635
 
Prepaid expenses and other current assets
   
47,640
     
42,657
 
Total Current Assets
   
934,780
     
741,153
 
                 
Goodwill & intangible assets (net)
   
434,315
     
435,009
 
Property, plant, and equipment (net)
   
483,193
     
446,478
 
Other assets
   
129,326
     
122,853
 
                 
Total Assets
 
$
1,981,614
   
$
1,745,493
 
                 
Trade accounts payable
 
$
142,365
   
$
125,519
 
Short-term borrowings
   
20,373
     
8,539
 
Other current liabilities
   
109,415
     
98,247
 
Total Current Liabilities
   
272,153
     
232,305
 
                 
Long-term debt
   
630,331
     
503,006
 
Accrued employee and retiree benefits
   
26,364
     
28,579
 
Other liabilities
   
53,168
     
43,178
 
Shareholders' Equity
   
999,598
     
938,425
 
                 
Total Liabilities and Shareholders' Equity
 
$
1,981,614
   
$
1,745,493
 

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Sensient Technologies Corporation
 Page 9
(In thousands, except per share amounts)
 
(Unaudited)
 

Consolidated Statements of Cash Flows
           
Year Ended December 31,
           
   
2022
   
2021
 
Cash flows from operating activities:
           
Net earnings
 
$
140,887
   
$
118,745
 
Adjustments to arrive at net cash provided by operating activities:
               
Depreciation and amortization
   
52,467
     
52,051
 
Share-based compensation expense
   
16,138
     
9,573
 
Net loss on assets
   
276
     
331
 
Net (gain) loss on divestitures and other charges
   
(2,532
)
   
14,021
 
Deferred income taxes
   
(11,010
)
   
(6,071
)
Changes in operating assets and liabilities:
               
Trade accounts receivable
   
(46,086
)
   
(34,571
)
Inventories
   
(159,014
)
   
(36,323
)
Prepaid expenses and other assets
   
(5,055
)
   
(6,057
)
Trade accounts payable and other accrued expenses
   
17,489
     
21,326
 
Accrued salaries, wages, and withholdings
   
3,486
     
7,321
 
Income taxes
   
4,422
     
4,275
 
Other liabilities
   
602
     
597
 
                 
Net cash provided by operating activities
   
12,070
     
145,218
 
                 
Cash flows from investing activities:
               
Acquisition of property, plant, and equipment
   
(79,322
)
   
(60,788
)
Proceeds from sale of assets
   
264
     
216
 
Proceeds from divestiture of businesses
   
2,532
     
37,790
 
Acquisition of new businesses
   
(22,714
)
   
(13,875
)
Other investing activities
   
792
     
1,097
 
                 
Net cash used in investing activities
   
(98,448
)
   
(35,560
)
                 
Cash flows from financing activities:
               
Proceeds from additional borrowings
   
328,597
     
112,194
 
Debt payments
   
(171,447
)
   
(110,168
)
Purchase of treasury stock
   
-
     
(42,511
)
Dividends paid
   
(68,915
)
   
(66,694
)
Other financing activities
   
(2,056
)
   
(582
)
                 
Net cash provided by (used in) financing activities
   
86,179
     
(107,761
)
                 
Effect of exchange rate changes on cash and cash equivalents
   
(4,620
)
   
(927
)
                 
Net (decrease) increase in cash and cash equivalents
   
(4,819
)
   
970
 
Cash and cash equivalents at beginning of period
   
25,740
     
24,770
 
Cash and cash equivalents at end of period
 
$
20,921
   
$
25,740
 

Supplemental Information
Year Ended December 31,
    
2022
       
2021
  
             
Dividends paid per share
 
$
1.64
   
$
1.58
 

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Sensient Technologies Corporation
 Page 10
(In thousands, except percentages and per share amounts)
 
(Unaudited)
 

Reconciliation of Non-GAAP Amounts

The Company's results for the three and twelve months ended December 31, 2022 and 2021 include adjusted revenue, adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share, which exclude divestiture & other related costs, operational improvement plan costs and income, and the results of the divested operations.

   
Three Months Ended December 31,
   
Year Ended December 31,
 
   
2022
   
2021
   
% Change
   
2022
   
2021
   
% Change
 
Revenue (GAAP)
 
$
348,736
   
$
340,448
     
2.4
%
 
$
1,437,039
   
$
1,380,264
     
4.1
%
Revenue of the divested product lines
   
-
     
(663
)
           
-
     
(30,062
)
       
Adjusted revenue
 
$
348,736
   
$
339,785
     
2.6
%
 
$
1,437,039
   
$
1,350,202
     
6.4
%
                                                 
Operating income (GAAP)
 
$
41,225
   
$
40,420
     
2.0
%
 
$
196,751
   
$
170,028
     
15.7
%
Divestiture & other related costs  – Cost of products sold
   
-
     
58
             
-
     
86
         
Divestiture & other related (income) costs – Selling and administrative expenses
   
(2,532
)
   
579
             
(2,532
)
   
14,052
         
Operating loss (income) of the divested product lines
   
-
     
518
             
-
     
(1,880
)
       
Operational improvement plan - Selling and administrative expenses (income)
   
-
     
115
             
-
     
(1,895
)
       
Adjusted operating income
 
$
38,693
   
$
41,690
     
(7.2
%)
 
$
194,219
   
$
180,391
     
7.7
%
                                                 
Net earnings (GAAP)
 
$
29,121
   
$
27,229
     
6.9
%
 
$
140,887
   
$
118,745
     
18.6
%
Divestiture & other related (income) costs, before tax
   
(2,532
)
   
637
             
(2,532
)
   
14,138
         
Tax impact of divestiture & other related costs(1)
   
636
     
1,809
             
636
     
2,092
         
Net loss (earnings) of the divested product lines, before tax
   
-
     
518
             
-
     
(1,880
)
       
Tax impact of the divested product lines(1)
   
-
     
(130
)
           
-
     
460
         
Operational improvement plan costs (income), before tax
   
-
     
115
             
-
     
(1,895
)
       
Tax impact of operational improvement plan(1)
   
-
     
427
             
-
     
471
         
Adjusted net earnings
 
$
27,225
   
$
30,605
     
(11.0
%)
 
$
138,991
   
$
132,131
     
5.2
%
                                                 
Diluted earnings per share (GAAP)
 
$
0.69
   
$
0.65
     
6.2
%
 
$
3.34
   
$
2.81
     
18.9
%
Divestiture & other related (income) costs, net of tax
   
(0.04
)
   
0.06
             
(0.04
)
   
0.38
         
Results of operations of the divested product lines, net of tax
   
-
     
0.01
             
-
     
(0.03
)
       
Operational improvement plan costs (income), net of tax
   
-
     
0.01
             
-
     
(0.03
)
       
Adjusted diluted earnings per share
 
$
0.64
   
$
0.73
     
(12.3
%)
 
$
3.29
   
$
3.13
     
5.1
%

Note: Earnings per share calculations may not foot due to rounding differences.

(1) Tax impact adjustments were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates.

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Sensient Technologies Corporation
Page 11
(In thousands)
 
(Unaudited)
 

Reconciliation of Non-GAAP Amounts - Continued

Results by Segment
 
Three Months Ended December 31,
 
Revenue
 
2022
   
Adjustments(2)
   
Adjusted
2022
   
2021
   
Adjustments(2)
   
Adjusted
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
     
-
     
34,567
     
35,749
     
-
     
35,749
 
Intersegment elimination
   
(12,566
)
   
-
     
(12,566
)
   
(9,853
)
   
-
     
(9,853
)
                                                 
Consolidated
 
$
348,736
   
$
-
   
$
348,736
   
$
340,448
   
$
(663
)
 
$
339,785
 
                                                 
Operating Income
                                               
                                                 
Flavors & Extracts
 
$
21,495
   
$
-
   
$
21,495
   
$
21,942
   
$
491
   
$
22,433
 
Color
   
24,584
     
-
     
24,584
     
24,113
     
27
     
24,140
 
Asia Pacific
   
6,615
     
-
     
6,615
     
7,184
     
-
     
7,184
 
Corporate & Other
   
(11,469
)
   
(2,532
)
   
(14,001
)
   
(12,819
)
   
752
     
(12,067
)
                                                 
Consolidated
 
$
41,225
   
$
(2,532
)
 
$
38,693
   
$
40,420
   
$
1,270
   
$
41,690
 

Results by Segment
 
Year Ended December 31,
 
Revenue
  
 
2022
     
 
Adjustments(2)
     
Adjusted
2022
     
 
2021
     
 
Adjustments(2)
     
Adjusted
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
     
-
     
143,581
     
135,348
     
(295
)
   
135,053
 
Intersegment elimination
   
(48,562
)
   
-
     
(48,562
)
   
(39,781
)
   
150
     
(39,631
)
                                                 
Consolidated
 
$
1,437,039
   
$
-
   
$
1,437,039
   
$
1,380,264
   
$
(30,062
)
 
$
1,350,202
 
                                                 
Operating Income
                                               
                                                 
Flavors & Extracts
 
$
105,424
   
$
-
   
$
105,424
   
$
98,660
   
$
(2,368
)
 
$
96,292
 
Color
   
114,619
     
-
     
114,619
     
103,575
     
575
     
104,150
 
Asia Pacific
   
29,492
     
-
     
29,492
     
26,330
     
(87
)
   
26,243
 
Corporate & Other
   
(52,784
)
   
(2,532
)
   
(55,316
)
   
(58,537
)
   
12,243
     
(46,294
)
                                                 
Consolidated
 
$
196,751
   
$
(2,532
)
 
$
194,219
   
$
170,028
   
$
10,363
   
$
180,391
 

(2) For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income, adjustments consist of the results of the divested product lines, divestiture & other related costs and income, and 2021 operational improvement plan costs and income.

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Sensient Technologies Corporation
 Page 12
(In thousands, except percentages)
 
(Unaudited)
 

Reconciliation of Non-GAAP Amounts - Continued

The following tables summarize the percentage change in the 2022 results compared to the 2021 results for the corresponding periods.

   
Three Months Ended December 31,
 
Revenue
 
Total
   
Foreign
Exchange
Rates
   
Adjustments(3)
   
Adjusted
Local
Currency
 
Flavors & Extracts
   
0.8
%
   
(1.8
%)
   
(0.1
%)
   
2.7
%
Color
   
7.8
%
   
(3.8
%)
   
(0.3
%)
   
11.9
%
Asia Pacific
   
(3.3
%)
   
(9.7
%)
   
0.0
%
   
6.4
%
Total Revenue
   
2.4
%
   
(3.3
%)
   
(0.2
%)
   
5.9
%
                                 
Operating Income
                               
Flavors & Extracts
   
(2.0
%)
   
(0.1
%)
   
2.2
%
   
(4.1
%)
Color
   
2.0
%
   
(5.9
%)
   
0.1
%
   
7.8
%
Asia Pacific
   
(7.9
%)
   
(11.5
%)
   
0.0
%
   
3.6
%
Corporate & Other
   
(10.5
%)
   
0.0
%
   
(26.6
%)
   
16.1
%
Total Operating Income
   
2.0
%
   
(5.6
%)
   
9.3
%
   
(1.7
%)
Diluted Earnings Per Share
   
6.2
%
   
(6.1
%)
   
19.1
%
   
(6.8
%)
Adjusted EBITDA
   
(4.3
%)
   
(4.6
%)
   
N/A
     
0.3
%

   
Year Ended December 31,
 
Revenue
 
Total
   
Foreign
Exchange
Rates
   
Adjustments(3)
   
Adjusted
Local
Currency
 
Flavors & Extracts
   
(0.2
%)
   
(2.2
%)
   
(3.8
%)
   
5.8
%
Color
   
10.8
%
   
(3.8
%)
   
(0.4
%)
   
15.0
%
Asia Pacific
   
6.1
%
   
(8.0
%)
   
(0.3
%)
   
14.4
%
Total Revenue
   
4.1
%
   
(3.4
%)
   
(2.2
%)
   
9.7
%
                                 
Operating Income
                               
Flavors & Extracts
   
6.9
%
   
(0.9
%)
   
(2.5
%)
   
10.3
%
Color
   
10.7
%
   
(5.1
%)
   
0.7
%
   
15.1
%
Asia Pacific
   
12.0
%
   
(10.1
%)
   
(0.4
%)
   
22.5
%
Corporate & Other
   
(9.8
%)
   
0.0
%
   
(29.4
%)
   
19.6
%
Total Operating Income
   
15.7
%
   
(5.2
%)
   
8.4
%
   
12.5
%
Diluted Earnings Per Share
   
18.9
%
   
(5.3
%)
   
14.3
%
   
9.9
%
Adjusted EBITDA
   
8.7
%
   
(4.1
%)
   
N/A
     
12.8
%

(3) For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income, Diluted Earnings per Share, and Adjusted EBITDA, adjustments consist of the results of the divested product lines, divestiture & other related costs and income, and 2021 operational improvement plan costs and income.

The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three and twelve months ended December 31, 2022 and 2021.

   
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, divested product lines
   
-
     
-
             
-
     
(146
)
       
Share-based compensation expense
   
3,662
     
3,142
             
16,138
     
9,573
         
Divestiture & other related (income) costs, before tax
   
(2,532
)
   
637
             
(2,532
)
   
14,138
         
Results of operations of the divested product lines, before tax
   
-
     
518
             
-
     
(1,880
)
       
Operational improvement plan costs (income), before tax
   
-
     
115
             
-
     
(1,895
)
       
Adjusted EBITDA
 
$
55,560
   
$
58,055
     
(4.3
%)
 
$
262,824
   
$
241,869
     
8.7
%

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Sensient Technologies Corporation
 Page 13
(In thousands, except percentages)
 
(Unaudited)
 

Reconciliation of Non-GAAP Amounts - Continued

   
Year Ended December 31,
 
             
Debt
 
2022
   
2021
 
Short-term borrowings
 
$
20,373
   
$
8,539
 
Long-term debt
   
630,331
     
503,006
 
Credit Agreement adjustments (4)
   
(10,180
)
   
(14,900
)
Net Debt
 
$
640,524
   
$
496,645
 
                 
Operating income (GAAP)
 
$
196,751
   
$
170,028
 
Depreciation and amortization
   
52,467
     
52,051
 
Depreciation and amortization, divested product lines
   
-
     
(146
)
Share-based compensation expense
   
16,138
     
9,573
 
Divestiture & other related (income) costs, before tax
   
(2,532
)
   
14,138
 
Results of operations of the divested product lines, before tax
   
-
     
(1,880
)
Operational improvement plan income, before tax
   
-
     
(1,895
)
Other non-operating (gains) losses (5)
   
(866
)
   
1,027
 
Credit Adjusted EBITDA
 
$
261,958
   
$
242,896
 
                 
Net Debt to Credit Adjusted EBITDA
   
2.4
x
   
2.0
x

(4) Adjustments include cash and cash equivalents, as described in the Company's Third Amended and Restated Credit Agreement (Credit Agreement), and certain letters of credit and hedge contracts.
(5) Adjustments consist of certain financing transaction costs, certain non-financing interest items, and gains and losses related to certain non-cash, non-operating, and/or non-recurring items as described in the Credit Agreement.

We have included each of these non-GAAP measures in order to provide additional information regarding our 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 release and our 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, and we believe 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. With respect to Net Debt to Credit Adjusted EBITDA, this represents our leverage ratio as calculated for purposes of compliance with covenants under our Credit Agreement.  In addition to use for these purposes, management utilizes this measure to assess leverage trends and may from time to time disclose it to investors to be used for these purposes.




Exhibit 99.2

 Fourth Quarter 2022 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, 2021, as updated and supplemented by the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, and in other documents that the Company files with the SEC, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 that will be filed by March 1, 2023. 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 revenue, adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share (which exclude divestiture & other related costs, the results of the divested product lines, and restructuring and other costs, which include operational improvement plan costs and income) (2) adjusted results by segment (which exclude divestiture & other related costs, operational improvement plan costs and income, and the results of the divested operations), (3) percentage changes in revenue, operating income, diluted earnings per share, and EBITDA on an adjusted local currency basis (which eliminate the effects that result from translating its international operations into U.S. dollars, divestiture & other related costs, the results of the divested product lines, and restructuring and other costs, which include operational improvement plan costs), and (4) adjusted EBITDA (which excludes depreciation and amortization expense, non-cash share based compensation expense, the results of the divested product lines, the divestiture & other related costs, and operational improvement plan costs and income). 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 Segment Revenue  LC Revenue Change*  Q4 ’22  YTD ’22  +14.9%  +16.9%  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  Segment Revenue  LC Revenue Q4 ’22  YTD ’22  Change* • Demand for innovative products with multiple benefits  +4.3% • Product line includes dyes, pigments, formulation aides and  +9.5% 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. 
 

 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 Segment Revenue  LC Revenue Change* Q4 ’22 +11.0%  YTD ’22 +12.6%  Opportunities for on trend products with extracts, taste modulation, and natural flavors  Natural  Ingredients  33% of Segment Revenue  LC Revenue Change*  Q4 ’22 (10.2%)  YTD ’22 (6.1%)  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  Q4 2022 local currency adjusted revenue* and operating profit* improved 6.4% and 3.6%, respectively  *Local currency adjusted revenue and local currency adjusted operating profit are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document.  Asia Pacific Overview 
 

 15  2022 Q4 Segment Results  Color Group reported higher revenue in the quarter due to pricing actions and volume growth. Operating income was up due to pricing actions, partially offset by higher input costs.  Flavors & Extracts Group fourth quarter revenue increased as a result of pricing actions. Volume growth in Flavors, Extracts and Flavor Ingredients was offset by lower Natural Ingredient volumes primarily due to customer destocking. Operating income declined in the quarter primarily due to higher input costs and lower volumes for the Group.  Asia Pacific Group fourth quarter revenue and operating income increased due to pricing actions across the Group.  Local Currency Adjusted Operating Income*  Q4  YTD  Color  +7.8%  +15.1%  Flavors & Extracts  (4.1%)  +10.3%  Asia Pacific  +3.6%  +22.5%  Local Currency Adjusted Revenue*  Local Currency Adjusted* Commentary:  Q4  YTD  Color  +11.9%  +15.0%  Flavors & Extracts  +2.7%  +5.8%  Asia Pacific  +6.4%  +14.4%  * Local-currency (LC) adjusted revenue and adjusted operating income are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document. 
 

 16  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 pricing actions across the groups and continued volume growth in the Color Group.  Q4 consolidated local currency adjusted operating income declined despite operating profit growth in the Colors and Asia Pacific Groups. Lower volumes in the Natural Ingredients product line, and higher year-over-year input costs and Corporate expenses related to performance-based compensation contributed to the reduction in the quarter.  * Local-currency (LC) adjusted 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  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 headwind in early 2023, but moderately favorable for  the full year  Interest expense headwind of $10-$12 million  Tax rate of approximately 25%  Local Currency Diluted EPS*  Flat to Low-single digit growth  The 2023 Local Currency Diluted EPS, Local Currency Revenue and Adjusted Local Currency EBITDA growth rates for 2023 are compared to 2022 Adjusted Diluted EPS, Adjusted Revenue and Adjusted EBITDA, respectively. Adjusted 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  Click here to access our  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 sustainable supply chain  Emphasis on new products and technologies that minimize waste and environmental impacts  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 tenth year in a row and we have added seven 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 
 

 22  Non-GAAP Financial Measures  Note: EPS Calculations may not foot due to rounding differences  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   $ 348,736   $ 339,785  $ 1,437,039  $ 1,350,202  Operating income (GAAP)  $  41,225  $  40,420  $ 196,751  $ 170,028  Divestiture & other related costs – Cost of products sold  -  58  -  86  Divestiture & other related (income) costs – Selling and administrative expenses  (2,532)  579  (2,532)  14,052  Operating loss (income) of the divested product lines  -  518  -  (1,880)  Operational improvement plan - Selling and administrative expenses (income)   -    115    -    (1,895)  Adjusted operating income   $ 38,693   $ 41,690  $ 194,219  $ 180,391  Net earnings (GAAP)  $  29,121  $  27,229  $ 140,887  $ 118,745  Divestiture & other related (income) costs, before tax  (2,532)  637  (2,532)  14,138  Tax impact of divestiture & other related costs *  636  1,809  636  2,092  Net loss (earnings) of the divested product lines, before tax  -  518  -  (1,880)  Tax impact of the divested product lines *  -  (130)  -  460  Operational improvement plan costs (income), before tax  -  115  -  (1,895)  Tax impact of operational improvement plan *   -    427    -    471   Adjusted net earnings   $ 27,225   $ 30,605  $ 138,991  $ 132,131  Diluted earnings per share (GAAP)  $  0.69  $  0.65  $  3.34  $  2.81  Divestiture & other related (income) costs, net of tax  (0.04)  0.06  (0.04)  0.38  Results of operations of the divested product lines, net of tax  -  0.01  -  (0.03)  Operational improvement plan costs (income), net of tax - 0.01 - (0.03)  Adjusted diluted earnings per share $ 0.64 $ 0.73 $ 3.29 $ 3.13  * Tax impact adjustments were determined based on the nature of the underlying Non-GAAP adjustments and their relevant jurisdictional tax rates. 
 

 Non-GAAP Financial Measures (Cont’d)  28  Revenue   Total   Foreign  Exchange   Rates    Adjustments*  Adjusted  Local   Currency    Total   Foreign  Exchange   Rates    Adjustments*  Adjusted  Local   Currency   Flavors & Extracts  0.8%  (1.8%)  (0.1%)  2.7%  (0.2%)  (2.2%)  (3.8%)  5.8%  Color  7.8%  (3.8%)  (0.3%)  11.9%  10.8%  (3.8%)  (0.4%)  15.0%  Asia Pacific  (3.3%)  (9.7%)  0.0%  6.4%  6.1%  (8.0%)  (0.3%)  14.4%  Total Revenue  2.4%  (3.3%)  (0.2%)  5.9%  4.1%  (3.4%)  (2.2%)  9.7%  Operating Income  Flavors & Extracts  (2.0%)  (0.1%)  2.2%  (4.1%)  6.9%  (0.9%)  (2.5%)  10.3%  Color  2.0%  (5.9%)  0.1%  7.8%  10.7%  (5.1%)  0.7%  15.1%  Asia Pacific  (7.9%)  (11.5%)  0.0%  3.6%  12.0%  (10.1%)  (0.4%)  22.5%  Corporate & Other  (10.5%)  0.0%  (26.6%)  16.1%  (9.8%)  0.0%  (29.4%)  19.6%  Total Operating Income  2.0%  (5.6%)  9.3%  (1.7%)  15.7%  (5.2%)  8.4%  12.5%  Diluted Earnings Per Share  6.2%  (6.1%)  19.1%  (6.8%)  18.9%  (5.3%)  14.3%  9.9%  Adjusted EBITDA  (4.3%)  (4.6%)  N/A  0.3%  8.7%  (4.1%)  N/A  12.8%  * For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income, Diluted Earnings per Share, and Adjusted EBITDA, adjustments consist of the results of the divested product lines, divestiture & other related costs and income, and 2021 operational improvement plan costs and income.   Three Months Ended December 31, 2022 Year Ended December 31, 2022  
 

 Non-GAAP Financial Measures (Cont’d)  28  Note: *Fragrances was divested in April 2021, Inks was divested in June 2020, and Yogurt Fruit Prep was divested in September 2020.  Revenue   Total   Exchange   Rates   Local   Currency    Total   Exchange   Rates   Local   Currency   Flavors, Extracts and Flavor Ingredients  8.2%  (2.8%)  11.0%  9.3%  (3.3%)  12.6%  Natural Ingredients  (10.4%)  (0.2%)  (10.2%)  (6.2%)  (0.1%)  (6.1%)  Fragrances*  (100.0%)  0.0%  (100.0%)  (100.0%)  0.0%  (100.0%)  Yogurt Fruit Prep*  (100.0%)  0.0%  (100.0%)  (100.0%)  0.0%  (100.0%)  Flavors & Extracts Group  0.8%  (1.8%)  2.6%  (0.2%)  (2.2%)  2.0%  Food and Pharmaceutical  11.9%  (3.0%)  14.9%  13.5%  (3.4%)  16.9%  Personal Care  (1.2%)  (5.5%)  4.3%  4.6%  (4.9%)  9.5%  Inks*  (59.4%)  0.0%  (59.4%)  (17.7%)  0.0%  (17.7%)  Color Group  7.8%  (3.8%)  11.6%  10.8%  (3.8%)  14.6%  Asia Pacific  (3.3%)  (9.7%)  6.4%  6.1%  (8.0%)  14.1%  Total revenue including the product lines  divested  2.4%  (3.3%)  5.7%  4.1%  (3.4%)  7.5%   Three Months Ended December 31, 2022 Year Ended December 31, 2022 Foreign Foreign 
 

 Non-GAAP Financial Measures (Cont’d)  28  Revenue   2022   Adjustments*  Adjusted   2022    2021   Adjustments*  Adjusted   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  -  34,567  35,749  -  35,749  Intersegment elimination   (12,566)   -    (12,566)   (9,853)   -    (9,853)  Consolidated   $ 348,736   $ -  $ 348,736  $ 340,448  $ (663)  $ 339,785  Operating Income  Flavors & Extracts  $ 21,495  $ -  $ 21,495  $ 21,942  $ 491  $ 22,433  Color  24,584  -  24,584  24,113  27  24,140  Asia Pacific  6,615  -  6,615  7,184  -  7,184  Corporate & Other   (11,469)   (2,532)   (14,001)   (12,819)   752    (12,067)  Consolidated   $ 41,225   $ (2,532)  $ 38,693  $ 40,420  $ 1,270  $ 41,690  * For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income, adjustments consist of the results of the divested product lines, divestiture & other related costs and income, and 2021 operational improvement plan costs and income.  Results by Segment Three Months Ended December 31,  
 

 Non-GAAP Financial Measures (Cont’d)  28  Revenue   2022   Adjustments*  Adjusted   2022    2021   Adjustments*  Adjusted   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  -  143,581  135,348  (295)  135,053  Intersegment elimination   (48,562)   -    (48,562)   (39,781)   150    (39,631)  Consolidated   $ 1,437,039   $ -  $ 1,437,039  $ 1,380,264  $ (30,062)  $ 1,350,202  Operating Income  Flavors & Extracts  $ 105,424  $ -  $ 105,424  $ 98,660  $ (2,368)  $ 96,292  Color  114,619  -  114,619  103,575  575  104,150  Asia Pacific  29,492  -  29,492  26,330  (87)  26,243  Corporate & Other   (52,784)   (2,532)   (55,316)   (58,537)   12,243    (46,294)  Consolidated   $ 196,751   $ (2,532)  $ 194,219  $ 170,028  $ 10,363  $ 180,391  Results by Segment Year Ended December 31,   * For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income, adjustments consist of the results of the divested product lines, divestiture & other related costs and income, and 2021 operational improvement plan costs and income. 
 

 Non-GAAP Financial Measures (Cont’d)   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, divested product lines  -  -  -  (146)  Share-based compensation expense  3,662  3,142  16,138  9,573  Divestiture & other related (income) costs, before tax  (2,532)  637  (2,532)  14,138  Results of operations of the divested product lines, before tax  -  518  -  (1,880)  Operational improvement plan costs (income), before tax   -    115       -    (1,895)     Adjusted EBITDA   $ 55,560   $ 58,055  (4.3%)  $ 262,824  $ 241,869  8.7%   Three Months Ended December 31, Year Ended December 31,   28 
 

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