David Michael Co An Overview of the Industry

David Michael & Co. An Overview of the Industry, Company & S. T. A. M. P. 02 November 2020

Presentation Overview • Introduction • Flavor & Fragrance Industry – Flavor Industry • David Michael & Co. – Corporate, Technical, Sales Force • Sales Training Account Management Program (S. T. A. M. P. ) • Field Experience • Ideal Candidate • Compensation

Introduction • Graduated with Finance Degree from the University of Virginia • Joined David Michael in May of 2000 • Manage New England Territory – Based in Boston, MA • Oversee Recruiting and Training for Sales Training Account Management Program (S. T. A. M. P. )

Flavor & Fragrance Industry • $17. 7 Billion Industry Worldwide • Divided into Three Different Segments – Flavors • Food, Beverage, Tobacco & Pharmaceuticals – Fragrances • Soaps, Detergents, Cosmetics, & Toiletries – Essential Oils & Aroma Chemicals • Derived from Plants, Animals and Chemical Intermediates • Raw Materials Used to Manufacture Flavors & Fragrances

Flavor & Fragrance Industry • Over 500 Flavor & Fragrance Companies Worldwide • Top 5 Flavor & Fragrance Companies 1. Givadaun: 2. IFF: 3. Firmenich: 4. Symerise: 5. Quest: $2. 35 $2. 03 $1. 73 $1. 54 $1. 10 Billion Billion (13. 3%) (11. 5%) (9. 8%) (8. 7%) (6. 2%)

Flavor Industry • Have You Ever Considered How Food and Beverages Achieve Their Taste? • For instance, How Does. . – Haagan Dazs Ice Cream Taste Like Cookies & Cream? – Honey Maid™ Graham Crackers Taste Like Cinnamon?

Flavor Industry • They Achieve Their Taste Through the Use of FLAVORS • Flavors are Incorporated During the Manufacturing Process of Food, Beverages, Tobacco & Pharmaceuticals • Without Flavors, the Final Product May Not Taste Like Anything at All

Flavor Industry Cookies & Cream Ice Cream Ingredients: cream, nonfat milk, Oreo chocolate cookies pieces (sugar, enriched flour (wheat flour, niacin, reduced iron, thiamine mononitrate, riboflavin, folic acid) vegetable shortening (partially hydrogenated soybean oil), cocoa (processed with alkali), high fructose corn syrup, corn flour, whey, (from milk) corn starch, baking soda, salt, soy lecithin (emulsifier), VANILLIN, AN ARTIFICIAL FLAVOR, chocolate), sugar, corn syrup, whey, N&A VANILLA FLAVOR, FLAVOR cellulose gum, mono and diglycerides, guar gum, carrageenan, polysorbate 80, annatto color

Flavor Industry Cinnamon Graham Crackers Ingredients: enriched flour (wheat flour, niacin, reduced iron, thiamine mononitrate [vitamin b 1], riboflavin [vitamin b 2], folic acid), sugar, partially hydrogenated soybean oil, graham flour, high fructose corn syrup, honey, molasses, corn syrup, calcium carbonate (source of calcium), leavening (baking soda, calcium phosphate), salt, cinnamon, dextrose, NATURAL FLAVOR.

Flavor Industry • Flavors Are Used for the Following Reasons: – Provide Characteristic Flavor, which is the Stated Flavor of Food or Beverage – Enhance Existing Flavor – Compensate for Natural Flavor Loss – Reduce Costs • Flavor Forms & Origin – Liquid & Powder – Natural, Natural & Artificial and Artificial

Flavor Industry • Possible Customers & Applications in the Food & Beverage Industry – – – Beverages Candy Baked Goods Ice Cream & Frozen Desserts Alcoholic Products

Flavor Industry • Flavor Evaluation: – – – Gin & Tonic Beef Filet Mignon Apple Basil Lime

Corporate • Global Corporation with Headquarters in Philadelphia, PA • Privately Owned for over 100 years and Managed by Two Families • Operations in California; Mexico City, Mexico; Valence, France; Beijing, China • 250 Employees Worldwide

Technical • Over 27, 000 Flavors and Stabilizers • Fifty-Two Technical People • One-in-Three Employees are Technical • 5: 1 Technical to Sales Ratio • Eleven Flavor Chemists • Three Chefs

Technical • Applications Team for Product Development and Flavor Application • Pilot Plant Allows for Product and Process Simulation • Sensory Lab to Evaluate Products and Flavors

Sales Force • Twelve Domestic Account Managers • Three Geographical Territories • Current Cities Occupied by Account Managers – East Coast: Toronto, Boston, New York, Philadelphia & Atlanta – Midwest: Chicago, Minneapolis, Columbus & Dallas – West Coast: Los Angeles & San Francisco

Sales Force • Average Years of Employment: 11. 4 • Schools Attended & Home States – – – Indiana University, Kansas University of Virginia, Connecticut Cornell University, New York Penn State, Pennsylvania Virginia Tech, Delaware Notre Dame, Illinois

S. T. A. M. P. • Goal & Purpose Established in 1979, to Ensure that David Michael’s Account Managers are the Best Trained in the Industry • 12 – 18 Month Personalized One-on-One Training Program • Based at Headquarters in Philadelphia, PA • No More than Two Candidates Participate in the Program at any Given Time

S. T. A. M. P. • Overview of First Half (Months 0– 6) – Train and Work in Total Customer Satisfaction Department – Participate in Morning Meeting with President and Vice President of Technical – Attend Classes – Complete Quizzes & Written Midterm

S. T. A. M. P. • Overview of Second Half (Months 6– 12) – Continue all First Half Activities – Field Trips with Account Managers • Approximately Ten Trips – Attend Penn State Ice Cream Short Course Held Annually in January – Complete a Five Hour Oral and Written Final Exam Administered by Both the President & S. T. A. M. P. Trainer

S. T. A. M. P. • Over 90 Classes Covering the Following Three Areas: 1. Product Knowledge & Information 2. Sales Skills 3. Company Departments • Classes Taught by Over 30 Employees, Including S. T. A. M. P. Trainer, Technical and Upper Management

S. T. A. M. P. • Product Knowledge & Information – – – – Introduction to Food Science The Art of Tasting Flavor Basics Creative Flavors Chocolate Manufacturing Distilled Spirits Products Vanilla Market

S. T. A. M. P. • Sales Skills – Art of Making a Presentation – Traveling Tricks – Account Management, Organization & Time Management – Qualifying Accounts – Forecasting & Projections – Current Industry Trends

S. T. A. M. P. • Company Departments – – – – Beverage Lab Confectionary Lab Vanilla Lab Manufacturing Facility Costing Department Quality Control Departments Sample Lab

Field Experience • Relocate to Manage a Multi-State Territory – To be Determined Towards the End of Training Based on Need – Take in Consideration Background • Work from Home Office and Report to District Manager • Entrepreneurial Opportunities

Field Experience • Provided with Tier Call List Consisting of Multinational, National & Regional Companies • Possible Types of Business Relationships – Existing Relationship & Annual Sales • Guaranteed Minimum Annual Sales of $350, 000 – Existing Relationship & No Annual Sales – No Existing Relationship & No Annual Sales • Requires Cold Calling

Field Experience Consultative Sales Process Ideation Trends, New Product News, Market Research Base Development Texture technology Flavor Profile Innovation, Flavor Technology, Pilot Plant Validation Goal Validation Sensory and Consumer Testing

Field Experience • Long Term Career Path in Sales: – – – Associate Account Manager (0) Account Manager (4) Senior Account Manager (2) District Account Manager (3) Regional Account Manager (3)

Field Experience • Additional Attributes of Position – – Full Access to Upper Management & Mentors Small, Close Knit Work Environment Diverse Customer Base & Products Strong Business Relationships Lead to… • Close Friendships Not Strictly Based on Work • Customers Calling You for Sample Requests – Lucrative Long Term Career in Business to Business Sales

Ideal Candidate • • December 2005 or May 2006 Graduate Strongly Sales Orientated Self Disciplined and Motivated Strong Organizational Skills Strong Communication Skills Enthusiasm for Travel Committed to Two Relocations

Compensation • Competitive Base Salary with a 10% Raise Upon Graduation • Aggressive Incentive Programs • Semi-Annual Bonus • Company Car, Expense Account & Laptop • Medical (PPO), Dental and Eye • 401 K with Company Matching • Profit Sharing

Next Steps • First Round Interviews will be held on February 16, 2006. • Second Round Interviews will be held in Indianapolis shortly after First Round Interviews. • Final Round Interviews will be held in Philadelphia, PA.

Conclusion Question & Answer John A. Monsif Account Manager 215. 632. 3100, extension 1113 Jmonsif@dmflavors. com