Slide 1: Sensient Technologies Corporation Fourth Quarter, 2018
Sensient Technologies Corporation Fourth Quarter, 2018
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, Personal Care, and Industrial markets Applications expertise and solutions-based selling High impact relative to cost Technically-driven products that are difficult to replace Stable and consistent end-ma
Slide 5: Global Revenues
Global Revenues Colors Food & Beverage Colors $553 Million Personal Care Ingredients Digital Inks & Technical Colors Pharmaceutical Excipients Flavors & Fragrances Sweet Savory Beverage Natural Ingredients $747 Million Fragrance Bionutrients $123 Million Asia Pacific * Global Revenues include interc
Slide 6: Sensient Colors
Sensient Colors Global market leader Growing end markets Unmatched innovation & applications expertise 6 sensient.com
Slide 7: Color Group Markets Served
Color Group Markets Served Percent of Group Revenues 12% BUSINESS POSITION TREND 5% Food & Beverage Colors Top player Natural colors Personal Care Ingredients Top player Continuous Innovation Digital Inks & Technical Top player Innovation, Sustainability Pharmaceutical Excipients Specialty Natural c
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 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 Innovation, Na
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: Flavors & Fragrances Competition
Flavors & Fragrances Competition Beverage Flavors & Systems Savory Flavors & Ingredients Sweet Flavors & Ingredients FRUITCROWN Natural Ingredients Fragrance Bionutrients 12 sensient.com
Slide 13: Asia Pacific Group
Asia Pacific Group Sales of Flavors and Colors in the Asia Pacific markets are reported as a separate segment that is managed on a geographic basis Manufacturing capabilities in Australia, New Zealand, China, Japan, Philippines; R&D capabilities in Singapore, Thailand, Indonesia, and China Annual re
Slide 14: 2018 Consolidated Results
2018 Consolidated Results Q4 Full Year Local Currency Revenue* +0.8% +1.1% Local Currency Adjusted (8.0%) (6.5%) Operating Income* Local Currency Adjusted EPS* (3.6%) +3.2% Q4: Revenue growth driven by Food Colors, offset by softness in the Cosmetics market and certain Flavors product categories. Op
Slide 15: 2018 Q4 & Full Year Segment Results
2018 Q4 & Full Year Segment Results Local Currency Revenue* Color Group fourth quarter revenue Q4 Full Year increase driven by growth in Food Colors, Color 4.0% 4.8% partially offset by Cosmetics destocking. Flavors & Fragrances (0.5%) (1.1%) Operating income declined in the fourth quarter Asia Paci
Slide 16: Capital Allocation
Capital Allocation Cash Returned to Shareholders $250 Prioritize ROI capital projects $200 Preserve consistent dividend payout Millions $150 $137 $177 Maintain financial flexibility to $100 $87 $77 pursue M&A $50 $50 Excess capital returned to $48 $48 $50 $54 $57 shareholders through $- opportunisti
Slide 17: 2019 Financial Outlook
2019 Financial Outlook Metric 2019 Local Currency Guidance* Consolidated Revenue Low to mid-single digit growth Color Group Mid-single digit growth Flavors & Fragrances Group Low to mid-single digit growth Asia Pacific Group Mid-single digit growth Consolidated Operating Income Low single digit grow
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 2018 results compared to 2017
The following table summarizes the percentage change in the 2018 results compared to the 2017 results for the corresponding periods in the respective financial measures. Three Months Ended December 31, 2018 Twelve Months Ended December 31, 2018 Foreign Foreign Exchange Local Exchange Local Revenue T
Slide 21: sensient.com
sensient.com 21 sensient.com