Slide 1: Sensient Technologies Corporation
Sensient Technologies Corporation Paul Manning, Chairman, President & CEO Stephen Rolfs, SVP & CFO Third 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 Strong consumer t
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 2013-2017 restructuring program resulted in improved product mix, streamlined production footprint and lower capital intensity Restructuring efforts resulted in business disruptions; however, lost sales impacts are leveling off Future emphasis on high value-added product p
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, and China Annual revenues
Slide 13: 2019 Q3 Highlights
2019 Q3 Highlights Strong demand for natural colors continued in the quarter at near double-digit growth in all regions except EU Cosmetic market still soft; expect gradual improvement to order patterns over the next two quarters Finished flavors and extract product line sales remained strong at hig
Slide 14: 2019 Q3 Highlights
2019 Q3 Highlights Sensient announced that it is reviewing strategic alternatives, including the potential sale, of its Inks, Fragrances, and North American Fruit Prep product lines In total, these businesses represented approximately 10% of the 2018 consolidated revenue The sale of these businesses
Slide 15: 2019 Q3 Consolidated Results
2019 Q3 Consolidated Results Q3 YTD Local Currency Revenue* (6.0%) (3.2%) Local Currency Operating Income* (22.0%) (12.3%) Local Currency Adjusted Diluted EPS* (20.0%) (13.4%) Local Currency Adjusted EBITDA* (15.0%) (9.4%) Q3 Revenue: Consolidated revenue decreased due to lower sales in flavor ingre
Slide 16: 2019 Q3 Segment Results
2019 Q3 Segment Results Local Currency Revenue* Color Group third quarter revenue decreased due to Q3 YTD lower sales resulting from soft market conditions in Food and Beverage in North America and Europe and Color (4.2%) (0.8%) Cosmetic, partially offset by strong growth in natural Flavors & Fragra
Slide 17: Capital Allocation
Capital Allocation Cash Returned to Shareholders $250 Prioritize ROI capital projects $200 Maintain dividend payout ratio $150 Debt reduction to maintain targeted Millions $177 leverage $137 $100 $87 $77 $50 Maintain financial flexibility to pursue $50 M&A $48 $48 $50 $54 $57 $- Excess capital retur
Slide 18: 2020 Revenue and Profit Outlook
2020 Revenue and Profit Outlook Year-over-year revenue growth driven by: • Investing in core areas of Food Colors, Finished Flavors and Extracts, Cosmetics, Pharmaceuticals, and Natural Ingredients • Divesting non-core product lines where Sensient lacks scale • Return to growth in our Cosmetic busin
Slide 19: 2019 Financial Outlook
2019 Financial Outlook Updated Full Year 2019 Guidance: Metric Updated Guidance Diluted EPS $2.90 - $3.00 Adjusted Below 2018 Adjusted EBITDA EBITDA 19 sensient.com
Slide 20: 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 20 sensient.com
Slide 21: 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 22: 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 September 30, Nine Months Ended September 30, Foreign Foreign Exchange Local Exchange Local Revenue Total Rates Currency Total Rates Currency Flavor
Slide 23: sensient.com
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