Slide 1: Second Quarter 2020 Investor Presentation
Second Quarter 2020 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 revenue, adjusted operating income, adjusted net earnings, and adjusted diluted EPS (which exclude the results of the product lines divested or to be divested and the div
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 Personal Care Divesting non-core product lines (inks, fragrances, and fruit prep product lines) where Sensient la
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 Fragrances 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 & Beverage 63% of 2019 Segment Revenue LC Revenue Change • Market trend toward natural colors in food and beverage (includes Pharmaceutical) Q2 ’20 +2.4% • Unique value proposition for Pharmaceutical customers YTD ’20 +3.4% includes colors, flavors, coat
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 $700 Million Flavors, Extracts, 54% of 2019 Segment Revenue and Flavor LC Revenue Change • Opportunities for on trend products with extracts, taste Q2 ’20 +3.8% modulation and natural flavors Ingredients YTD ’20 +1.5% Natural Ingredients 31% of 2019 Segme
Slide 12: Asia Pacific Group
Asia Pacific Group Sensient’s sales of flavors and colors for Food & Beverage in the Asia Pacific markets are reported as a separate segment since they are managed on a geographic basis Manufacturing capabilities in Australia, New Zealand, China, Japan, Philippines, Thailand, and India; R&D capabili
Slide 13: 2020 Q2 Highlights
2020 Q2 Highlights Flavors & Fragrances Group sales were up solidly, driven by strong sales in Natural Ingredients and continued growth in finished flavors and extracts Food & Beverage Color sales were up 2.4% in the quarter and 3.4% year-to- date in local currency Color Group sales were down in the
Slide 14: 2020 Segment Results
2020 Segment Results Local Currency Adjusted Revenue* Color Group second quarter revenue decreased due to lower Q2 YTD volume in makeup in Personal Care offsetting continued growth in Food & Beverage Colors. Operating income declined as COVID Color (5.1%) (1.1%) impacts resulted in substantially low
Slide 15: 2020 Q2 Consolidated Results
2020 Q2 Consolidated Results Q2 YTD Local Currency Adjusted Revenue* Flat +1.6% Local Currency Adjusted Operating (11.8%) (9.4%) Income* Local Currency Adjusted Diluted EPS* (9.9%) (7.6%) Local Currency Adjusted EBITDA* (4.3%) (4.4%) Q2 consolidated revenue decreased due to lower sales in makeup 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 Financial Outlook
2020 Financial Outlook Previous Guidance Current Guidance Diluted EPS (GAAP) $1.85 $2.15 $2.10 $2.35 Divestiture & Other Costs and Operational Result of Divested Operations 0.65 0.55 0.40 0.35 Foreign Currency Impact 0.10 0.10 0.10 0.10 Adjusted Diluted EPS in Local Currency $2.60 $2.80 $2.60 $2.80
Slide 18: 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 18 sensient.com
Slide 19: 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 revenue, adjusted operating income, adjusted net earnings, and adjusted diluted EPS (which exclude the results of the product lines di
Slide 20: Non-GAAP Financial Measures (Cont'd)
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 Exch
Slide 21: Non-GAAP Financial Measures (Cont'd)
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 Rates
Slide 22: 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 23: YTD Divested Operations
YTD Divested Operations Results by Segment Six 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 $ 370,109 $ (52,187) $ 317,922 $ 363,687 $ (56,101) $ 307,586 Color 264,791 (12,57
Slide 24: sensient.com
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