Sensient Technologies Corporation · NYSE:SXT
Sensient Technologies — Investor Presentation (September 2023)
40 slides from Sensient Technologies's investor presentation, September 2023
Slide 1: Sensient Technologies Corporation
Sensient Technologies Corporation
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
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures Within this document, the Company reports certain non-GAAP financial measures, including: (1) revenue, operating income, and diluted earnings per share on an adjusted local currency basis (which eliminate the effects that result from translating its international operatio
Slide 4: Sensient Overview
Sensient Overview Sensient Technologies: Level 1 Company Confidential
Slide 5: Leading global manufacturer and marketer of colors, flavors, and other specialty ingredients
Leading global manufacturer and marketer of colors, flavors, and other specialty ingredients Using advanced technologies and robust global supply chain capabilities to develop specialized solutions Flavors & Asia Extracts Colors Pacific 2022 Revenue: $738M 2022 Revenue: $604M 2022 Revenue: $144M Fla
Slide 6: Global Footprint - A Global Strategic Advantage
Global Footprint - A Global Strategic Advantage Global Headquarters Milwaukee, WI, USA Colors Sites Flavors Sites APAC Sites 6
Slide 7: 2022 Financial Results
2022 Financial Results Local Currency Local Currency Adjusted Revenue* Adjusted Operating Income* Color Group +15.0% +15.1% Flavors & Extracts Group +5.8% +10.3% Asia Pacific Group +14.4% +22.5% Consolidated +9.7% +12.5% Local Currency Adjusted EBITDA* +12.8% Local Currency Adjusted Diluted EPS* +9.
Slide 8: 2023 Q2 YTD Financial Results
2023 Q2 YTD Financial Results Local Currency Local Currency Revenue* Operating Income* Color Group +5.7% (0.7%) Flavors & Extracts Group (1.4%) (19.3%) Asia Pacific Group +6.9% +9.7% Consolidated +2.6% (4.4%) Local Currency Adjusted EBITDA* (4.4%) Local Currency Diluted EPS* (10.0%) *Local-currency
Slide 9: 2023 Industry Trends
2023 Industry Trends Destocking Inflation Pricing New Wins & Product Launches Expect volume declines Energy, growing costs, and Adjustments to cover New win rate remains related to destocking to certain commodity costs inflation-driven costs have strong and there continue to moderate as remain eleva
Slide 10: Macro Trends to Watch
Macro Trends to Watch 1 2 3 4 5 Approachable Speed Clean Pet Category Health & Indulgence to Market Label Surge Wellness Consumers are trying new The rate of new product Natural and organic Pet ownership is rising, The importance of products more often. launches suffered products are top decision- a
Slide 11: Sensient Color Group
Sensient Color Group Sensient Technologies: Level 1 Company Confidential
Slide 12: Color Group End Market Segments Overview
Color Group End Market Segments Overview Color Group Segment 2022 Revenue $604M Food & Pharmaceutical 2022 Revenue $439M Beverage Dairy Bakery Grocery Confection Pet Rx OTC Nutraceutical Personal Care 2022 Revenue $165M Makeup Skin Care Hair Fragrance Personal Care 2022 Revenues include intercompany
Slide 13: Sensient Food Colors
Sensient Food Colors Sensient Technologies: Level 1 Company Confidential
Slide 14: Food Colors
Sensient Food Colors The leading global food color house Customer base is across all major food market segments 14
Slide 15: Food Colors Strategic Pillars
Food Colors Strategic Pillars Advanced Customer- Leading Key Market Natural Centric Service Food Safety and Color Color Application Excellence Program Insights Innovation Support Sensient enables food and beverage manufacturers to benefit from the full potential of food color. We know how to refine
Slide 16: Food Colors – Expertise Across the Value Chain
Sensient Food Colors – Expertise Across the Value Chain APPLICATION EXPERTISE 16
Slide 17: Food Colors Natural Color Journey
Sensient Food Colors Natural Color Journey We are growing capabilities and capacity through a combination of R&D investments, acquisitions, capital investments, and agronomy development. Early 2010’s 2023 Expansion Expansion Germany Natural Color Natural Color Expansion Expansion Phase 1 – Phase 2 –
Slide 18: Food Colors Innovation Platforms
Sensient Food Colors Innovation Platforms Coloring Food ‚Ultra Clean‘ Dispersions Coloring Foods Marine Natural Blue Blue 18
Slide 19: Market Trends & Dynamics
Market Trends & Dynamics Sensient Technologies: Level 1 Company Confidential
Slide 20: Market Size Expected to Continue to Grow
Market Size Expected to Continue to Grow Natural color market is expected to grow at a mid-single digit rate 2022 Millions of US Dollars TiO2 $222 Natural color requires higher usage rate versus synthetic Nature Identical $263 Natural color adoption outside of Europe Synthetic $587 will continue to
Slide 21: Consumer Demand For 'Less Artificial' is Evergreen Trend
Consumer Demand For ‘Less Artificial’ is Evergreen Trend 21
Slide 22: 80% of New Product Launches Use Natural Colors
80% of New Product Launches Use Natural Colors % of Food & Drink Product Launches Using Natural Color in 2022 % Increase from 2014 to 2022 22
Slide 23: Growth Opportunities for Sensient Food & Beverage
Growth Opportunities for Sensient Food & Beverage Consumer Europe is Pet humanization Transition to TiO2 is under interest in better undergoing a driving conversion natural colors is scrutiny globally plant-based transition to to natural colors global proteins remains coloring foods Market for color
Slide 24: Sensient Personal Care
Sensient Personal Care Sensient Technologies: Level 1 Company Confidential
Slide 25: Personal Care Applications
Sensient Personal Care Applications Across all beauty applications Face Care Body Care Sun Care Make-up Hair Colour Hair Care Fragrance Oral Care Personal Care 25
Slide 26: Personal Care Market Strategy
Sensient Personal Care Market Strategy Value Proposition CSR program Run the Innovation Digitalization Regulatory Application Global trains on time support production Lead Driven by natural Use of digital Experts are at capabilities transparency and Service trends and tools to the forefront of Regio
Slide 27: Growth Opportunities for Sensient Personal Care
Growth Opportunities for Sensient Personal Care Surface Color protection Solubilizer Biobased pigment Natural colors treatment Many fragrance and Sustainable and personal care color traceable & easy Anticipate transition to Combine our 3 areas of Customers are starting protectors are dispersibility
Slide 28: Flavors & Extracts Group
Sensient Flavors & Extracts Group Sensient Technologies: Level 1 Company Confidential
Slide 29: It's a matter of TASTE
It’s a matter of TASTE We partner with our customers to create delicious and visually appealing food and beverages with our team of experts and portfolio of solutions How Sensient Wins – Our Value Proposition 1. Industry leading customer service KPIs, from samples and document turnaround, to OTIF an
Slide 30: Flavors & Extracts Group
Sensient Flavors & Extracts Group We are a supplier of flavors, extracts, flavor ingredients, and technologies that meets the highest quality and service our customers demand. We are an agile organization and offer scalable capabilities in food & beverage categories. Sweet Beverage Savory Natural In
Slide 31: Capital Investment Strategy
Capital Investment Strategy 2014-2019 2020 2021 2022 2023 Phase I and Phase II Restructuring Phases I & II: Savory Flavors Acquisitions US Sweet Flavors European Flavor Consolidated and upgraded Capacity - Flavor & Inclusion & Compounding flavor production & technical Expansion Solutions Inc. Expans
Slide 32: We Support Customers from Conception to Launch
We Support Customers from Conception to Launch Innovation Hub R&D Lab Scale Up Getting Aroma, Experienced team Sight, and Taste lead by IFT Certified Right! Foods Scientist • Better taste and visual • Internal and external appeal paneling capabilities • Project work designed • Fully equipped sensory
Slide 33: Flavors & Extracts Technology Platforms
Sensient Flavors & Extracts Technology Platforms MASKING ADDING Technologies to help Taste defining mask off notes that Mask Add technologies and impact product Undesirable Characteristic ingredients bring performance. Notes TECHNOLOGY Notes something new to SOLUTIONS enhance product performance. Bo
Slide 34: End Market Segment and Growth Areas
End Market Segment and Growth Areas Beverages Ice Cream & Novelties Bakery Plant-Based This product segment is the future One of the most dynamic flavor Globally, one of the largest Category driven by routines and and its success will depend on forward categories with low barrier segments with consi
Slide 35: Appendix
Appendix* *Amounts in thousands, except percentages and per share amounts Sensient Technologies: Level 1 Company Confidential
Slide 36: Non-GAAP Financial Measures
Non-GAAP Financial Measures Year Ended December 31, Adjusted Adjusted Revenue 2022 Adjustments* 2022 2021 Adjustments* 2021 Flavors & Extracts $ 738,003 $ - $ 738,003 $ 739,427 $ (27,837) $ 711,590 Color 604,017 - 604,017 545,270 (2,080) 543,190 Asia Pacific 143,581 - 143,581 135,348 (295) 135,053 I
Slide 37: Non-GAAP Financial Measures
Non-GAAP Financial Measures Year Ended December 31, 2022 2021 % Change Diluted earnings per share (GAAP) $ 3.34 $ 2.81 18.9% Divestiture & other related (income) costs, net of tax (0.04) 0.38 Results of operations of the divested product lines, net of tax - (0.03) Operational improvement plan income
Slide 38: Non-GAAP Financial Measures
Non-GAAP Financial Measures Year Ended December 31, 2022 Foreign Adjusted Exchange Local Revenue Total Rates Adjustments* Currency Flavors & Extracts (0.2%) (2.2%) (3.8%) 5.8% Color 10.8% (3.8%) (0.4%) 15.0% Asia Pacific 6.1% (8.0%) (0.3%) 14.4% Total Revenue 4.1% (3.4% ) (2.2% ) 9.7% Operating Inco
Slide 39: Non-GAAP Financial Measures
Non-GAAP Financial Measures Six Months Ended June 30, 2023 2022 % Change Operating income (GAAP) $ 102,429 $ 108,033 (5.2%) Depreciation and amortization 28,590 26,180 Share-based compensation expense 4,766 8,691 Adjusted EBITDA $ 135,785 $ 142,904 (5.0%) 39
Slide 40: Non-GAAP Financial Measures
Non-GAAP Financial Measures Six Months Ended June 30, 2023 Foreign Exchange Local Revenue Total Rates Currency Flavors & Extracts (1.3%) 0.1% (1.4%) Color 5.6% (0.1%) 5.7% Asia Pacific 3.1% (3.8%) 6.9% Total Revenue 2.2% (0.4% ) 2.6% Operating Income Flavors & Extracts (19.0%) 0.3% (19.3%) Color (1.
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