Sensient Technologies Corporation · NYSE:SXT
Sensient Technologies — Q2 2019 Earnings Presentation
23 slides from Sensient Technologies's earnings presentation, Jul 19, 2019
Slide 1: Sensient Technologies Corporation Second Quarter, 2019
Sensient Technologies Corporation Second Quarter, 2019
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. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors c
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Within this document, the Company reports certain non-GAAP financial measures, including: (1) adjusted operating income and adjusted diluted EPS from continuing operations (which exclude restructuring and other costs as well as the impact of the Tax Cuts and Jobs Act (“20
Slide 4: Innovative Technologies Creating Unique Solutions
Innovative Technologies Creating Unique Solutions Ingredient solutions serving Food & Beverage, Cosmetic, Pharmaceutical, and Industrial markets Applications expertise and solutions-based selling High impact relative to cost Technically-driven products that are difficult to replace Stable and consis
Slide 5: Global Revenues by Group
Global Revenues by Group Colors Food & Beverage Colors $553 Million Cosmetic Inks & Industrial Pharmaceutical Excipients Flavors & Fragrances Sweet Savory Beverage Natural Ingredients $747 Million Fragrance Bionutrients $123 Million Asia Pacific * 2018 Global Revenues include intercompany sales whic
Slide 6: Sensient Colors
Sensient Colors Global market leader Natural color innovator Growing end markets Unmatched innovation & applications expertise 6 sensient.com
Slide 7: Color Group Markets Served
Color Group Markets Served Percent of Group Revenues (‘18) 12% BUSINESS POSITION TREND 5% Food & Beverage Colors Top player Natural colors Cosmetic Top player Natural solutions, Innovation Inks & Industrial Top player Innovation, Sustainability Pharmaceutical Excipients Specialty Natural colors play
Slide 8: Color Group
Color Group Higher operating margin 20.8% through mix improvement 15.7% Increased operating income Operating $115 Income Well-positioned to take and $59 advantage of strong Margins commercial trends 2009 2018 Operating Income Margin in USD millions Culled non-strategic, low margin business 8 sensien
Slide 9: Sensient Flavors & Fragrances
Sensient Flavors & Fragrances Broad product offering Unique ability to service global, regional, and local customers Leading technology platforms Unmatched applications expertise 9 sensient.com
Slide 10: Flavors & Fragrances Group Markets Served
Flavors & Fragrances Group Markets Served Percent of Group Revenues (‘18) 7% BUSINESS POSITION TREND 23% Sweet Top 10 14% Clean labels, Savory Top 10 natural flavors, extracts, sugar-free, Beverage Top 10 salt-reduction, taste-masking, Natural Ingredients Top player organic Fragrance Top 10 Innovati
Slide 11: Flavors & Fragrances Group
Flavors & Fragrances Group Completed restructuring program in 2017; culled and divested non- strategic and low margin business, and consolidated manufacturing footprint to improve operating efficiencies Emphasis on high-value added product portfolio mix and cost optimization to achieve margin improv
Slide 12: Asia Pacific Group
Asia Pacific Group Sales of Flavors and Colors in the Asia Pacific markets are reported as a separate segment since it is managed on a geographic basis Manufacturing capabilities in Australia, New Zealand, China, Japan, Philippines; R&D capabilities in Singapore, Thailand, Indonesia, and China Annua
Slide 13: 2019 Q2 Highlights
2019 Q2 Highlights Strong demand for natural colors resulting in strong revenue growth in Food and Beverage Colors Cosmetic sales still lower as a result of destocking; expect continued, gradual improvement going forward Finished flavors and extract product line sales remained strong but were offset
Slide 14: 2019 Q2 Consolidated Results
2019 Q2 Consolidated Results Q2 YTD Local Currency Revenue* (4.5%) (1.9%) Local Currency Operating Income* (7.6%) (7.8%) Local Currency Diluted EPS* (10.9%) (9.9%) Local Currency Adjusted EBITDA*: (8.4%) (6.8%) Q2 Revenue: Consolidated revenue decreased due to lower sales in flavor ingredients and C
Slide 15: 2019 Q2 Segment Results
2019 Q2 Segment Results Local Currency Revenue* Color Group second quarter revenue Q2 YTD decreased due to lower sales in Cosmetic and Color (0.9%) 0.8% Inks, partially offset by strong growth in natural colors. Operating income declined in the second Flavors & Fragrances (7.8%) (4.1%) quarter due t
Slide 16: Capital Allocation
Capital Allocation Cash Returned to Shareholders $250 Prioritize ROI capital projects $200 Maintain dividend payout ratio Debt reduction to maintain targeted Millions $150 $177 leverage $137 $100 $87 $77 $50 Maintain financial flexibility to pursue $50 M&A $48 $48 $50 $54 $57 $- Excess capital retur
Slide 17: 2019 Financial Outlook
2019 Financial Outlook Updated Full Year 2019 Guidance: Original Updated Metric Foreign Currency Impact Guidance Guidance Diluted Down 8-11% Down 12-13% Maintain negative foreign currency (FC) Local Currency vs. 2018 vs. 2018 impact of an additional 1-2%, or 5 cents. EPS Adjusted Local Down 4-7% Dow
Slide 18: Why Invest?
Why Invest? Strong competitive position ‘Sticky’ business (& low portion of customer costs) Global presence Exposure to stable and growing markets Focus on improving returns and on growth 18 sensient.com
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Within the following tables, the Company reports certain non-GAAP financial measures, including: (1) adjusted operating income, adjusted net earnings, and adjusted diluted EPS (which exclude restructuring, other costs and the impact of the 2017 Tax Cuts and Jobs Act (2017
Slide 20: Percentage change in 2019 results compared to 2018
The following table summarizes the percentage change in the 2019 results compared to the 2018 results for the corresponding periods: Three Months Ended June 30, Six Months Ended June 30, Foreign Foreign Exchange Local Exchange Local Revenue Total Rates Currency Total Rates Currency Flavors & Fragran
Slide 21: ESG Information
ESG Information Sensient is committed to the principles of sound environmental stewardship and the responsible and sustainable use of energy and natural resources. • Established 10-year goals to reduce Energy, Water, and Hazardous Waste Intensity by 2025 Environmental • Seed-to-shelf program focused
Slide 22: Contact Information
Contact Information Contact: Amy Agallar E-mail: investor.relations@sensient.com Phone: 1 414 347 3827 Website: www.sensient.com 22 sensient.com
Slide 23: sensient.com
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Sensient Technologies — Q2 2019 Earnings Presentation on 6ix