Slide 1: Fourth Quarter 2020 Investor Presentation
Fourth Quarter 2020 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 Divesting non-core product lines (inks, fragrances, and yogurt fruit prep product lines) where Sens
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 Q4 ’20 +4.4% • Unique value proposition for Pharmaceutical customers includes YTD ’20 +3
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, Q4 ’20 +11.5% and natural flavors Ingredients YTD ’20 +6
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: 2020 Highlights
2020 Highlights Achieved mid-single digit local currency adjusted revenue growth Delivered at the top end of EPS guidance for 2020 Flavors & Extracts group delivered double digit profit growth in 2020 Completed the divestiture of the inks and yogurt fruit prep product lines Signed a definitive agree
Slide 14: 2020 Q4 Segment Results
2020 Q4 Segment Results Color Group fourth quarter revenue increased due to continued Local Currency Adjusted Revenue* growth in Food and Pharmaceutical colors, partially offset by lower Q4 YTD volume in makeup in Personal Care due to ongoing COVID impacts. Operating income was up in the quarter due
Slide 15: 2020 Q4 Consolidated Results
2020 Q4 Consolidated Results Q4 YTD Local Currency Adjusted Revenue* +7.9% +4.3% Local Currency Adjusted Operating +19.2% +0.4% Income* Local Currency Adjusted Diluted EPS* 0.0% (3.4%) Local Currency Adjusted EBITDA* +16.9% +3.2% Q4 consolidated revenue was up due to double digit growth in the Flavo
Slide 16: 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 17: 2021 Financial Outlook
2021 Financial Outlook Metric Guidance Comments • Includes 25 to 30 cents of divestiture related costs, operational improvement plan costs, and the results of operations of the Diluted EPS (GAAP) Mid-to-high single digit growth remaining business to be divested • At current rates FX provides a 10 ce
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
Slide 19: 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 20: Appendix – Non-GAAP Tables
APPENDIX – NON-GAAP TABLES
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Revenue (GAAP) $ 334,668 $ 318,585 $ 1,332,001 $ 1,322,934 Revenue of the product lines divested or to be divested (25,163
Slide 22: 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 December 31, 2020 Twelve Months Ended December 31, 2020 Foreign Adjusted Foreign Adjusted Exchange Local Exchan
Slide 23: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended December 31, Twelve Months Ended December 31, 2020 2019 % Change 2020 2019 % Change Operating income (loss) (GAAP) $ 34,815 $ (14,466) (340.7%) $ 152,656 $ 121,110 26.0% Depreciation and amortization 12,810 13,309 49,641 55,015 Depreciation and
Slide 24: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended December 31, 2020 Twelve Months Ended December 31, 2020 Foreign Foreign Exchange Local Exchange Local Revenue Total Rates Currency Total Rates Currency Flavors, Extracts and Flavor Ingredients 12.3% 0.8% 11.5% 5.4% (0.7%) 6.1% Natural Ingredien
Slide 25: Q4 Divested Operations
Q4 Divested Operations Results by Segment Three Months Ended December 31, Adjusted Adjusted Revenue 2020 Adjustments* 2020 2019 Adjustments* 2019 Flavors & Extracts $ 189,060 $ (24,378) $ 164,682 $ 169,092 $ (25,308) $ 143,784 Color 119,813 (766) 119,047 125,363 (8,412) 116,951 Asia Pacific 32,165 (
Slide 26: YTD Divested Operations
YTD Divested Operations Results by Segment Twelve Months Ended December 31, Adjusted Adjusted Revenue 2020 Adjustments* 2020 2019 Adjustments* 2019 Flavors & Extracts $ 742,035 $ (99,543) $ 642,492 $ 700,356 $ (107,363) $ 592,993 Color 501,018 (14,008) 487,010 535,159 (36,002) 499,157 Asia Pacific 1
Slide 27: Sensient
eS SENSIENT —eomnv SENSIENT er