Slide 1: Fourth Quarter 2019 Investor Presentation
Fourth Quarter 2019 Investor Presentation
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This document contains forward-looking statements that reflect management’s current assumptions and estimates of future economic circumstances, industry conditions, Company performance, and financial results. Forward-looking statements include statements in the future tens
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, adjusted net earnings, and adjusted diluted EPS (which exclude divestiture & other related costs and the impacts of the Tax Cuts and Jobs Act (2017 Tax
Slide 4: Over 135 years of Industry Leadership
Over 135 years of Industry Leadership Established in 1882 as Meadow Springs Distillery Evolved into Universal Foods as a diversified food and ingredients company Name changed to Sensient Technologies Corporation in 2000 Today, we are a provider of advanced technologies, serving markets with strong g
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 Cosmetic Divesting non-core product lines (inks, fragrances, and fruit prep product lines) where Sensient lacks s
Slide 7: Global Revenue by Group
Global Revenue by Group Color Group 2019 Revenue: $535M Core Areas of Focus: Food and Pharmaceutical Colors and Cosmetic Flavors and Fragrances Group 2019 Revenue: $700M Core Areas of Focus: Flavors and Extracts, Natural Ingredients and Other Flavor Ingredients, Asia Pacific Group 2019 Revenue: $118
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 Main Products Revenue Targeted for Divestiture $535 Million Food Colors Synthetic Colors No impact from divestitures 57% of Segment Natural Colors Coloring Foodstuffs YTD Change: +3% Q4 Change: +2% Pharmaceutical Colors No impact from divestitures 6% of Segment Coatings F
Slide 10: Flavors and Fragrances Group
Flavors and Fragrances 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 and Fragrances Overview
Flavors and Fragrances Overview 2019 Revenue Main Products Revenue Targeted for Divestiture $700 Million Flavors & Extracts Extracts ~$48 Million of Fragrance Compounds with: 40% of Segment Taste Modifiers Profitability break-even or worse Mouthfeel Enhancers Low double-digit growth rate in 2019 YTD
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, Thailand, and India; R&D capabilities in Singapore, Thailand, and C
Slide 13: 2019 Q4 Highlights
2019 Q4 Highlights Color Group saw higher sales of Food and Pharmaceutical Colors in the quarter Overall Cosmetic sales still somewhat soft; but revenue has stabilized after more significant declines earlier in the year Flavor and Extract sales remained strong with mid single-digit growth, offset by
Slide 14: 2019 Q4 and Full Year Consolidated Results
2019 Q4 and Full Year Consolidated Results Q4 Full Year Local Currency Revenue* (1.4%) (2.8%) Local Currency Adjusted Operating Income* (30.6%) (16.3%) Local Currency Adjusted Diluted EPS* (21.5%) (14.9%) Local Currency Adjusted EBITDA* (23.2%) (12.6%) Q4: Consolidated revenue decreased due to lower
Slide 15: 2019 Q4 and Full Year Segment Results
2019 Q4 and Full Year Segment Results Local Currency Revenue* Color Group fourth quarter revenue decreased due to lower sales in inks and certain industrial products, partially offset by Q4 Full Year strong growth in natural colors and Pharmaceutical. Operating Color (0.6%) (0.7%) income declined in
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: 2020 Revenue and Profit Outlook
2020 Revenue and Profit Outlook Year-over-year revenue growth driven by: Investing in core areas of Food and Pharmaceutical Colors, Cosmetic, Flavors and Extracts, and Natural Ingredients Divesting non-core product lines where Sensient lacks scale Return to growth in our Cosmetic business based on n
Slide 18: 2020 Financial Outlook
2020 Financial Outlook Metric Guidance • Includes an estimated $0.65 to $0.75 of divestiture and other related costs • Tax and non-cash based compensation headwind of Diluted EPS $1.85 to $2.15 approximately $0.26 and $0.12, respectively • Excludes results of operations of product lines to be divest
Slide 19: 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 19 sensient.com
Slide 20: Non-GAAP Financial Measures
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 divestiture & other related costs as well as the impa
Slide 21: 2019 Results Summary
2019 Results Summary The following table summarizes the percentage change in the 2019 results compared to the 2018 results for the corresponding periods: Three Months Ended December 31, 2019 Twelve Months Ended December 31, 2019 Foreign Foreign Exchange Local Exchange Local Revenue Total Rates Curre
Slide 22: sensient.com
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