Slide 1: Sensient Technologies Corporation First Quarter, 2019
Sensient Technologies Corporation First 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 Stable and consis
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 Completed restructuring program in 2017; culled and divested non- strategic and low margin business, and consolidated manufacturing footprint to improve operating efficiencies. Emphasis on high-value added product portfolio mix and cost optimization to achieve margin impro
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, Indonesia, and China Annua
Slide 13: 2019 Q1 Highlights
2019 Q1 Highlights Strong natural colors demand resulted in double digit revenue growth in natural food and beverage colors Cosmetic sales remained soft due to destocking but order patterns improving in North America Increased sales of finished flavors and fragrance compounds were offset by lower sa
Slide 14: 2019 Q1 Consolidated Results
2019 Q1 Consolidated Results Q1 Local Currency Revenue* +0.8% Local Currency Operating Income* (7.9%) Local Currency Diluted EPS* (9.0%) Local Currency Adjusted EBITDA*: (5.3%) Revenue: Consolidated revenue increased due to high single digit revenue increases in our Food and Beverage Colors business
Slide 15: 2019 Q1 Segment Results
2019 Q1 Segment Results Local Currency Revenue* Color Group first quarter revenue increase Q1 was driven by growth in Food and Beverage Color 2.4% Colors. Operating income declined in the first quarter due to higher input costs, unfavorable Flavors & Fragrances (0.2%) product mix and ongoing softnes
Slide 16: Capital Allocation
Capital Allocation Cash Returned to Shareholders $250 Prioritize ROI capital projects Preserve consistent dividend payout $200 Debt reduction to maintain targeted leverage Millions $150 $177 $137 $100 $87 $77 Maintain financial flexibility to pursue $50 M&A $50 $48 $48 $50 $54 $57 Excess capital ret
Slide 17: 2019 Financial Outlook
2019 Financial Outlook Reaffirm previously issued local currency segment growth, diluted EPS and EBITDA guidance for full year 2019 The company outlined the following headwinds related to diluted EPS guidance: Diluted EPS Headwind Commentary Impact Higher year-over-year non-cash stock based compensa
Slide 18: 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 18 sensient.com
Slide 19: 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 20: 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 March 31 Foreign Exchange Local Revenue Total Rates Currency Flavors & Fragrances (2.5%) (2.3%) (0.2%) Color (2.2%) (4.6%) 2.4% Asia Pacific (5.8%)
Slide 21: ESG Information
ESG Information Sensient is committed to the principles of sound environmental stewardship and the responsible and sustainable use of energy and natural resources. • Established 10-year goals to reduce Energy, Water, and Hazardous Waste Intensity by 2025 Environmental • Seed-to-shelf program focused
Slide 22: Contact Information
Contact Information Contact: Amy Agallar E-mail: investor.relations@sensient.com Phone: 1 414 347 3827 Website: www.sensient.com 22 sensient.com
Slide 23: sensient.com
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