Slide 1: First Quarter 2021 Investor Presentation
First Quarter 2021 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 “2021 Financial Outlook” in this presentation. Such forward-looking statements are not guarantees of future performance and invo
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, adjusted EBITDA, and adjusted diluted earnings per share (which exclude divestiture & other related costs, ope
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
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 Divested non-core product lines (inks, fragrances, and yogurt fruit prep product lines) where Sensi
Slide 7: Global Revenue by Group
Global Revenue by Group Color Group 2020 Revenue: $501M 2020 Adj. Revenue*: $487M Core Areas of Focus: Food and Pharmaceutical Colors and Personal Care Flavors & Extracts Group 2020 Revenue: $742M 2020 Adj. Revenue*: $642M Core Areas of Focus: Flavors and Extracts, Natural Ingredients, and Other Fla
Slide 8: Color Group
Color Group Global market leader Natural color innovator Unmatched innovation & applications expertise 8
Slide 9: Color Overview
Color Overview 2020 Revenue: $501M 2020 Adj. Revenue*: $487M Food and 69% of Segment Revenue 71% of Adj. Segment Revenue Pharmaceutical LC Revenue Change • Market trend toward natural colors in food and beverage Q1 ’21 +1.2% • Unique value proposition for Pharmaceutical customers includes colors, fl
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
Slide 11: Flavors & Extracts Overview
Flavors & Extracts Overview 2020 Revenue: $742M 2020 Adj. Revenue*: $642M Flavors, Extracts, 54% of Segment Revenue 62% of Adj. Segment Revenue and Flavor LC Revenue Change • Opportunities for on trend products with extracts, taste modulation, Q1 ’21 +9.4% and natural flavors Ingredients Natural 33%
Slide 12: Asia Pacific Group
Asia Pacific Group 2020 adjusted revenue of $121 million and adjusted operating income of $22 million 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, J
Slide 13: 2021 Q1 Segment Results
2021 Q1 Segment Results Local Currency Adjusted Revenue* Color Group first quarter revenue decreased due to continued lower volume in Personal Care as a result of ongoing COVID Q1 impacts in the makeup category. Operating income was down in the quarter due to lower volumes in Personal Care and Color
Slide 14: 2021 Q1 Consolidated Results
2021 Q1 Consolidated Results Q1 Local Currency Adjusted Revenue* +4.0% Local Currency Adjusted Operating +0.3% Income* Local Currency Adjusted Diluted EPS* +4.2% Local Currency Adjusted EBITDA* +2.1% Q1 consolidated revenue was up due to continued strong growth in Flavors & Extracts and Asia Pacific
Slide 15: Capital Allocation
Capital Allocation $250 Prioritize ROI capital projects $200 $9 $31 Maintain dividend payout ratio $25 $118 $56 Debt reduction to maintain targeted DOLLARS IN MILLIONS $51 $87 $150 $81 leverage $54 $100 $57 $39 $52 Maintain financial flexibility to pursue $50 $50 M&A $87 $77 $62 $66 $50 Excess capit
Slide 16: 2021 Financial Outlook
2021 Financial Outlook Metric Guidance Comments • Includes approximately 30 cents of divestiture related costs, operational improvement plan costs, and the results of operations Diluted EPS (GAAP) Mid-to-high single digit growth of the remaining business to be divested • At current rates FX provides
Slide 17: 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 17
Slide 18: 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 19: Appendix – Non-GAAP Tables
APPENDIX – NON-GAAP TABLES
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Revenue (GAAP) $ 359,702 $ 350,677 Revenue of the product lines divested or to be divested (25,570) (36,585) Adjusted revenue $ 334,132 $ 314,092 Operating income (GAAP) $ 46,897 $ 34,561 Divestiture & ot
Slide 21: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) The following table summarizes the percentage change in the 2021 results compared to the 2020 results for the corresponding periods: Three Months Ended March 31, Foreign Adjusted Exchange Local Revenue Total Rates Adjustments* Currency Flavors & Extracts 7.7% 2.4
Slide 22: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended March 31, 2021 2020 % Change Operating income (GAAP) $ 46,897 $ 34,561 35.7% Depreciation and amortization 12,799 12,404 Depreciation and amortization, product lines divested or to be divested (49) (80) Share-based compensation expense 2,113 1,
Slide 23: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended March 31, 2021 Foreign Exchange Local Revenue Total Rates Currency Flavors, Extracts and Flavor Ingredients 12.2% 2.8% 9.4% Natural Ingredients 8.0% 0.1% 7.9% Fragrances 2.0% 7.7% (5.7%) Yogurt Fruit Prep* (58.3%) 0.0% (58.3%) Flavors & Extract
Slide 24: Q1 Divested Operations
Q1 Divested Operations Results by Segment Three Months Ended March 31, Adjusted Adjusted Revenue 2021 Adjustments* 2021 2020 Adjustments* 2020 Flavors & Extracts $ 200,911 $ (24,889) $ 176,022 $ 186,498 $ (27,445) $ 159,053 Color 135,720 (536) 135,184 143,495 (9,072) 134,423 Asia Pacific 33,840 (295
Slide 25: Sensient
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