Sensient Technologies Corporation · NYSE:SXT
Sensient Technologies — Baird's 2020 Global Industrial Conference
34 slides from Sensient Technologies's conference presentation, Nov 12, 2020
Slide 1: Baird Conference
Baird Conference November 12, 2020
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 “2020 Outlook” in this presentation. Such forward-looking statements are not guarantees of future performance and involve known
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, and adjusted diluted earnings per share (which exclude the results of the product lines divested or to be dive
Slide 4: Over 135 years of Industry Leadership
Over 135 years of Industry Leadership Industry leading provider of specialized solutions Applications and sales expertise to serve small entrepreneurial businesses to major international manufacturers Serving the food and beverage, pharmaceutical, nutraceutical, cosmetic and personal care markets 4
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 sensient.com
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 Divesting non-core product lines (inks, fragrances, and yogurt fruit prep product lines) where Sens
Slide 7: Global Revenue by Group
Global Revenue by Group Color Group 2019 Revenue: $535M Core Areas of Focus: Food and Pharmaceutical Colors and Personal Care Flavors and Extracts Group 2019 Revenue: $700M Core Areas of Focus: Flavors and Extracts, Natural Ingredients, and Other Flavor Ingredients Asia Pacific Group 2019 Revenue: $
Slide 8: Color Group
Color Group Global market leader Natural color innovator Unmatched innovation & applications expertise 8 sensient.com
Slide 9: Color Overview
Color Overview 2019 Revenue $535 Million Food and 63% of 2019 Segment Revenue Pharmaceutical LC Revenue Change • Market trend toward natural colors in food and beverage Q3 ’20 +3.2% • Unique value proposition for Pharmaceutical customers includes YTD ’20 +3.3% colors, flavors, coatings, and extracts
Slide 10: Flavors & Extracts Group
Flavors & Extracts Group Broad product offering Unique ability to service global, regional, and local customers Leading technology platforms Unmatched applications expertise 10 sensient.com
Slide 11: Flavors & Extracts Overview
Flavors & Extracts Overview 2019 Revenue $700 Million Flavors, Extracts, 54% of 2019 Segment Revenue and Flavor LC Revenue Change • Opportunities for on trend products with extracts, taste modulation, Q3 ’20 +11.9% and natural flavors Ingredients YTD ’20 +4.4% Natural 31% of 2019 Segment Revenue Ing
Slide 12: Asia Pacific Group
Asia Pacific Group 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; R&D capabilities in Singapore, Thailand, an
Slide 13: 2020 Year to Date Highlights
2020 Year to Date Highlights Flavors & Extracts Group sales were up 7.2%, driven by strong sales in Natural Ingredients and continued growth in Flavors, Extracts, and Flavor Ingredients Color Group sales were down slightly due to continued lower demand for makeup in the Personal Care business Food a
Slide 14: 2020 Year to Date Results
2020 Year to Date Results Adjusted Local Revenue Operating Income Currency Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD Total Company 3.1% Flat 6.1% 3.0% (7.2%) (11.8%) 10.1% (3.9%) Color 2.8% (5.1%) (1.5%) (1.2%) 0.3% (11.9%) 3.0% (3.1%) Flavors & Extracts 3.6% 5.7% 12.9% 7.2% (14.5%) 8.0% 24.1% 4.0% Asia Pacific 8.5
Slide 15: Financial Outlook
Financial Outlook Sensient has maintained its GAAP and adjusted earnings per share guidance throughout 2020: GAAP guidance $2.10 - $2.35 Adjusted guidance $2.60 - $2.80 Despite improving operational performance, growth in Sensient’s operating income and earnings per share in 2020 has been impacted b
Slide 16: Capital Allocation
Capital Allocation $350 Prioritize ROI capital projects $8 $300 Maintain dividend payout ratio $80 $250 Debt reduction to maintain targeted DOLLARS IN MILLIONS $79 $9 $200 $48 $31 $25 leverage $48 $56 $51 $150 $87 $81 $54 Maintain financial flexibility to pursue $100 $57 $177 $50 $39 M&A $137 $50 $8
Slide 17: Why Invest?
Why Invest? Strong competitive position ‘Sticky’ business (& low portion of customer costs) Global presence Exposure to stable and growing markets Focused on improving returns and on growth 17 sensient.com
Slide 18: 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 19: Investor Relations Contact
Investor Relations Contact Contact: Amy Agallar E-mail: investor.relations@sensient.com Phone: 1 414 347 3827 Website: www.sensient.com 19 sensient.com
Slide 20: Appendix – Non-GAAP Tables
APPENDIX – NON-GAAP TABLES
Slide 21: Q1 Non-GAAP Financial Measures
Q1 Non-GAAP Financial Measures Non-GAAP Financial Measures Within the following tables, the Company reports certain non-GAAP financial measures, including: (1) adjusted revenue, adjusted operating income, adjusted net earnings, and adjusted diluted EPS (which exclude the results of the product lines
Slide 22: Q1 Non-GAAP Financial Measures (Cont'd)
Q1 Non-GAAP Financial Measures (Cont’d)Q The following table summarizes the percentage change in the 2020 results compared to the 2019 results for the corresponding periods: Three Months Ended March 31, 2020 Foreign Product Adjusted Exchange Lines to be Local Revenue Total Rates Divested Currency Fl
Slide 23: Q1 Non-GAAP Financial Measures (Cont'd)
Q1 Non-GAAP Financial Measures (Cont’d) The following table summarizes the percentage change in the 2020 results compared to the 2019 results for the corresponding periods: Three Months Ended March 31, 2020 Foreign Exchange Local Revenue Total Rates Currency Flavors, Extracts and Flavor Ingredients
Slide 24: Q2 Non-GAAP Financial Measures
Q2 Non-GAAP Financial Measures Non-GAAP Financial Measures Within the following tables, the Company reports certain non-GAAP financial measures, including: (1) adjusted revenue, adjusted operating income, adjusted net earnings, and adjusted diluted EPS (which exclude the results of the product lines
Slide 25: Q2 Non-GAAP Financial Measures (Cont'd)
Q2 Non-GAAP Financial Measures (Cont’d) The following table summarizes the percentage change in the 2020 results compared to the 2019 results for the corresponding periods: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Foreign Product Lines Adjusted Foreign Product Lines Adjusted E
Slide 26: Q2 Non-GAAP Financial Measures (Cont'd)
Q2 Non-GAAP Financial Measures (Cont’d) The following table summarizes the percentage change in the 2020 results compared to the 2019 results for the corresponding periods: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Foreign Foreign Exchange Local Exchange Local Revenue Total Rat
Slide 27: Q3 Non-GAAP Financial Measures
Q3 Non-GAAP Financial Measures Non-GAAP Financial Measures Within the following tables, 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 the results of th
Slide 28: Q3 Non-GAAP Financial Measures (Cont'd)
Q3 Non-GAAP Financial Measures (Cont’d) The following table summarizes the percentage change in the 2020 results compared to the 2019 results for the corresponding periods: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Divestiture & Divestiture & Foreign Operational Adju
Slide 29: Q3 Non-GAAP Financial Measures (Cont'd)
Q3 Non-GAAP Financial Measures (Cont’d) Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Foreign Foreign Exchange Local Exchange Local Revenue Total Rates Currency Total Rates Currency Flavors, Extracts and Flavor Ingredients 11.9% 0.0% 11.9% 3.1% (1.3%) 4.4% Natural Ingred
Slide 30: Q1 Divested Operations
Q1 Divested Operations Results by Segment Three Months Ended March 31, Product Lines Adjusted Product Lines Adjusted Revenue 2020 to be divested 2020 2019 to be divested 2019 Flavors & Fragrances $ 186,498 $ (27,445) $ 159,053 $ 183,553 $ (28,806) $ 154,747 Color 143,495 (9,072) 134,423 143,879 (10,
Slide 31: Q2 Divested Operations
Q2 Divested Operations Results by Segment Three Months Ended June 30, Product Lines Product Lines divested or Adjusted divested or Adjusted Revenue 2020 to be divested 2020 2019 to be divested 2019 Flavors & Fragrances $ 183,611 $ (24,742) $ 158,869 $ 180,134 $ (27,295) $ 152,839 Color 121,296 (3,50
Slide 32: Q3 Divested Operations
Q3 Divested Operations Results by Segment Three Months Ended September 30, Divestiture & Operational Improvement Adjusted Divestiture Adjusted Revenue 2020 Plan Impact 2020 2019 Impact 2019 Flavors & Extracts $ 182,866 $ (22,978) $ 159,888 $ 167,577 $ (25,954) $ 141,623 Color 116,414 (669) 115,745 1
Slide 33: YTD Divested Operations
YTD Divested Operations Results by Segment Nine Months Ended September 30, Divestiture & Operational Improvement Adjusted Divestiture Adjusted Revenue 2020 Plan Impact 2020 2019 Impact 2019 Flavors & Extracts $ 552,975 $ (75,165) $ 477,810 $ 531,264 $ (82,055) $ 449,209 Color 381,205 (13,242) 367,96
Slide 34: sensient.com
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