Sensient Technologies Corporation · NYSE:SXT
Sensient Technologies — Q1 2020 Earnings Presentation
23 slides from Sensient Technologies's earnings presentation, Apr 29, 2020
Slide 1: First Quarter 2020 Investor Presentation
First Quarter 2020 Investor Presentation
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This document contains forward-looking statements that reflect management’s current assumptions and estimates of future economic circumstances, industry conditions, Company performance, and financial results. Forward-looking statements include statements in the future tens
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 EPS (which exclude the results of the product lines to be divested and the divestiture and
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 fruit prep product lines) where Sensient la
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 Fragrances 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 & Beverage 63% of 2019 Segment Revenue and LC Revenue Change • Market trend toward natural colors in food and beverage Q1 ’20 +4.3% • Unique value proposition for Pharmaceutical customers Pharmaceutical includes colors, flavors, coatings, and extracts Pe
Slide 10: Flavors and Fragrances Group
Flavors and Fragrances 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 and Fragrances Overview
Flavors and Fragrances Overview 2019 Revenue $700 Million Flavors, Extracts and 54% of 2019 Segment Revenue Flavor Ingredients LC Revenue Change • Opportunities for on trend products with extracts, taste Q1 ’20 (0.8%) modulation and natural flavors Natural Ingredients 31% of 2019 Segment Revenue LC
Slide 12: Asia Pacific Group
Asia Pacific Group Sensient’s sales of flavors and colors for Food & Beverage 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, Thailand, and India; R&D capabilitie
Slide 13: 2020 Q1 Highlights
2020 Q1 Highlights Color Group had higher sales of Food & Beverage and Pharmaceutical colors in the quarter Personal Care sales were relatively flat with declines in Asia and North America as a result of COVID-19, and overall lower demand for make-up Flavors & Fragrances Group sales were up driven b
Slide 14: 2020 Q1 Consolidated Results
2020 Q1 Consolidated Results Q1 Local Currency Adjusted Revenue* 3.1% Local Currency Adjusted Operating Income* (7.2%) Local Currency Adjusted Diluted EPS* (5.1%) Local Currency Adjusted EBITDA* (4.5%) Q1 consolidated revenue increased due to higher sales in Natural Ingredients, Food & Beverage natu
Slide 15: 2020 Segment Results
2020 Segment Results Local Currency Adjusted Revenue* Color Group first quarter revenue increased due to continued Q1 growth in natural colors and Pharmaceutical. Operating income increased slightly in the first quarter as the contributions from Color 2.8% growth in Food & Beverage and Pharmaceutica
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 Previous Guidance Current Guidance Diluted EPS (GAAP) $1.85 $2.15 $1.85 $2.15 Divestiture & Other Costs and Operational Result of Divested Operations 0.75 0.65 0.65 0.55 Foreign Currency Impact - - 0.10 0.10 Adjusted Diluted EPS in Local Currency $2.60 $2.80 $2.60 $2.80 Metric
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: 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 EPS (which exclude the results of the product lines to
Slide 20: 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 March 31, 2020 Foreign Product Adjusted Exchange Lines to be Local Revenue Total Rates Divested Currency Flavor
Slide 21: 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 March 31, 2020 Foreign Exchange Local Revenue Total Rates Currency Flavors, Extracts and Flavor Ingredients (2.
Slide 22: Q1 Divested Operations
Q1 Divested Operations Results by Segment Three Months Ended March 31, Product Lines Adjusted Product Lines Adjusted Revenue 2020 to be divested 2020 2019 to be divested 2019 Flavors & Fragrances $ 186,498 $ (27,445) $ 159,053 $ 183,553 $ (28,806) $ 154,747 Color 143,495 (9,072) 134,423 143,879 (10,
Slide 23: sensient.com
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