Sensient Technologies Corporation · NYSE:SXT
Sensient Technologies — Q4 2021 Earnings Presentation
28 slides from Sensient Technologies's earnings presentation, Feb 11, 2022
Slide 1: Fourth Quarter 2021 Investor Presentation
Fourth Quarter 2021 Investor Presentation
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This document contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including under “2022 Financial Outlook” in this presentation. Such forward-looking statements are not guarantees of future performance and invo
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Within this document, the Company reports certain non-GAAP financial measures, including: (1) adjusted revenue, adjusted operating income, adjusted net earnings, adjusted EBITDA, and adjusted diluted earnings per share (which exclude divestiture & other related costs, the
Slide 4: Sensient Overview
Sensient Overview Provider of customized solutions for food and beverage, pharmaceutical, and personal care customers Global market leader offering an extensive portfolio of natural flavor and color technology platforms and solutions Exceptional innovation & applications expertise with unique abilit
Slide 5: Innovative Technologies Creating Unique Solutions
Innovative Technologies Creating Unique Solutions Applications expertise and solutions-based selling High impact relative to cost Technically-driven products that are difficult to replace Strong consumer trends Opportunities to grow organically and through M&A 5
Slide 6: Focusing our portfolio and strengthening our commitment to the end markets
Focusing our portfolio and strengthening our commitment to the end markets 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
Slide 7: Natural solutions provider focused on consistent and sustainable supply chain
Natural solutions provider focused on consistent and sustainable supply chain Provider of natural solutions to support health & wellness and clean label consumer trends Robust agronomy program ensures responsible procurement and traceability of sustainable ingredients Committed to delivering safe, a
Slide 8: Global Revenue by Group
Global Revenue by Group Color Group 2021 Revenue: $545M 2021 Adj. Revenue*: $543M Core Areas of Focus: Food and Pharmaceutical Colors and Personal Care Flavors & Extracts Group 2021 Revenue: $739M 2021 Adj. Revenue*: $712M Core Areas of Focus: Natural Flavors, Extracts and Natural Ingredients Asia P
Slide 9: Color Group
Color Group Global market leader Natural color innovator Excellent innovation & applications expertise 9
Slide 10: Color Overview
Color Overview 2021 Revenue: $545M 2021 Adj. Revenue*: $543M Food and 71% of Segment Revenue 71% of Adj. Segment Revenue Pharmaceutical LC Revenue Change • Market trend toward natural colors in food and beverage Q4 ’21 +15.6% • Unique value proposition for Pharmaceutical customers includes YTD ’21 +
Slide 11: Flavors & Extracts Group
Flavors & Extracts Group Broad product offering Unique ability to service global, regional, and local customers Leading technology platforms Outstanding applications expertise 11
Slide 12: Flavors & Extracts Overview
Flavors & Extracts Overview 2021 Revenue: $739M 2021 Adj. Revenue*: $712M Flavors, Extracts, 62% of Segment Revenue 64% of Adj. Segment Revenue and Flavor LC Revenue Change • Opportunities for on trend products with extracts, taste modulation, Q4 ’21 +11.8% and natural flavors Ingredients YTD ’21 +1
Slide 13: Asia Pacific Group
Asia Pacific Group Portfolio of food and beverage flavors and colors R&D centers in Singapore, Thailand, and China to support local and regional customer base Ability to deliver localized solutions and technology platforms 13
Slide 14: Asia Pacific Overview
Asia Pacific Overview 2021 adjusted revenue of $135 million and adjusted operating income of $26 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
Slide 15: 2021 Q4 Segment Results
2021 Q4 Segment Results Local Currency Adjusted Revenue* Local Currency Adjusted* Commentary: Q4 YTD Color Group reported higher revenue in the quarter due to Color +15.8% +9.4% double digit growth in Personal Care and continued strength in Food and Pharmaceutical driven by new product launches and
Slide 16: 2021 Q4 Consolidated Results
2021 Q4 Consolidated Results Q4 YTD Local Currency Adjusted Revenue* +10.7% +9.1% Local Currency Adjusted Operating Income* +14.6% +8.3% Local Currency Adjusted Diluted EPS* +21.3% +10.0% Local Currency Adjusted EBITDA* +14.7% +8.6% Q4 consolidated local currency adjusted revenue was up double digit
Slide 17: Capital Allocation
Capital Allocation $250 Prioritize ROI capital projects $200 $9 $31 $118 $56 $14 Maintain financial flexibility to pursue DOLLARS IN MILLIONS $51 $150 $87 $61 M&A $54 $100 $57 $52 Dividend payout increased 5.1% in 2021 $39 $67 $50 $87 Excess capital returned to shareholders $77 $62 $66 $43 through o
Slide 18: 2022 Financial Outlook
2022 Financial Outlook Metric Guidance* Comments At current rates, we anticipate a FX headwind of approximately 10 Diluted EPS (GAAP) Mid-teen growth cents Local Currency Diluted EPS* High single digit growth Local Currency Revenue* Mid-single digit growth Excludes the impact of share-based stock co
Slide 19: Why Invest?
Why Invest? Strong competitive position Defensible and ‘Sticky’ business (& low portion of customer costs) Global presence Exposure to stable and growing markets Focused on improving returns and on growth 19
Slide 20: Appendix
APPENDIX* *Amounts in thousands, except percentages and per share amounts
Slide 21: ESG Information
Click here to access our ESG Information Sensient is committed to the principles of sound environmental stewardship and the responsible and sustainable use of energy and natural resources. • Long-term goals to reduce Energy, Water, and Hazardous Waste intensity Environmental • Seed-to-shelf program
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended Three Months Ended Year Ended Year Ended December December 31, 2021 December 31, 2020 December 31, 2021 31, 2020 Revenue (GAAP) $ 340,448 $ 334,668 $ 1,380,264 $ 1,332,001 Revenue of the divested product lines (663) (25,163) (30,062) (113,553) Adjusted
Slide 23: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended December 31, 2021 Year Ended December 31, 2021 Foreign Adjusted Foreign Adjusted Exchange Local Exchange Local Revenue Total Rates Adjustments* Currency Total Rates Adjustments* Currency Flavors & Extracts (6.1%) (0.7%) (13.4%) 8.0% (0.4%) 1.6%
Slide 24: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended December 31, Year Ended December 31, 2021 2020 % Change 2021 2020 % Change Operating income (GAAP) $ 40,420 $ 34,815 16.1% $ 170,028 $ 152,656 11.4% Depreciation and amortization 13,223 12,810 52,051 49,641 Depreciation and amortization, divest
Slide 25: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended December 31, 2021 Year Ended December 31, 2021 Foreign Foreign Exchange Local Exchange Local Revenue Total Rates Currency Total Rates Currency Flavors, Extracts and Flavor Ingredients 11.2% (0.6%) 11.8% 14.1% 2.2% 11.9% Natural Ingredients 2.4%
Slide 26: Q4 Results of Operations
Q4 Results of Operations Results by Segment Three Months Ended December 31, Adjusted Adjusted Revenue 2021 Adjustments* 2021 2020 Adjustments* 2020 Flavors & Extracts $ 177,448 $ (221) $ 177,227 $ 189,060 $ (24,378) $ 164,682 Color 137,104 (442) 136,662 119,813 (766) 119,047 Asia Pacific 35,749 - 35
Slide 27: Q4 YTD Results of Operations
Q4 YTD Results of Operations Results by Segment Year Ended December 31, Adjusted Adjusted Revenue 2021 Adjustments* 2021 2020 Adjustments* 2020 Flavors & Extracts $ 739,427 $ (27,837) $ 711,590 $ 742,035 $ (99,543) $ 642,492 Color 545,270 (2,080) 543,190 501,018 (14,008) 487,010 Asia Pacific 135,348
Slide 28: Sensient
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