Slide 1: Third Quarter 2020 Investor Presentation
Third Quarter 2020 Investor Presentation
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 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 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 YTD ’20 +3.3% includes 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 Q3 ’20 +11.9% modulation, and natural flavors Ingredients YTD ’20 +4.4% Natural Ingredients 31% of 2019 Segment
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 Q3 Highlights
2020 Q3 Highlights Flavors & Extracts Group sales were up for the third consecutive quarter, 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 C
Slide 14: 2020 Q3 Segment Results
2020 Q3 Segment Results Local Currency Adjusted Revenue* Color Group third quarter revenue decreased due to lower volume in makeup in Personal Care offsetting continued growth in Q3 YTD Food and Pharmaceutical colors. Operating income was up in the quarter due to higher volumes and product mix in Fo
Slide 15: 2020 Q3 Consolidated Results
2020 Q3 Consolidated Results Q3 YTD Local Currency Adjusted Revenue* +6.1% +3.0% Local Currency Adjusted Operating +10.1% (3.9%) Income* Local Currency Adjusted Diluted EPS* +6.8% (3.4%) Local Currency Adjusted EBITDA* 8.9% (0.4%) Q3 consolidated revenue was up due to strong sales growth across the
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 $25 $31 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 Metric Guidance Diluted EPS (GAAP) $2.10 to $2.35 • Excludes divestiture and other related costs and operational Adjusted Diluted EPS in Local improvement plan costs $2.60 to $2.80 Currency • Excludes results of operations of product lines divested or to be divested Adjusted L
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: 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 20: Appendix – Non-GAAP Tables
APPENDIX – NON-GAAP TABLES
Slide 21: 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 earnings per share (which exclude the results of the p
Slide 22: 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 September 30, 2020 Nine Months Ended September 30, 2020 Divestiture & Divestiture & Foreign Operational Adjuste
Slide 23: Non-GAAP Financial Measures (Cont'd)
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 Ingredien
Slide 24: 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 25: 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 26: sensient.com
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