Sensient Technologies Corporation · NYSE:SXT
Sensient Technologies — Q3 2021 Earnings Presentation
27 slides from Sensient Technologies's earnings presentation, Oct 15, 2021
Slide 1: Third Quarter 2021 Investor Presentation
Third 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: Sensient Overview
Sensient Overview Provider of customized solutions for food and beverage, pharmaceutical, and personal care customers Global market leader offering an extensive portfolio of flavor and color technology platforms and solutions Exceptional innovation & applications expertise with unique ability to ser
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) Expanded fl
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 Excellent 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 Q3 ’21 +18.0% • Unique value proposition for Pharmaceutical customers includes YTD ’21 +
Slide 10: Flavors & Extracts Group
Flavors & Extracts Group Broad product offering Unique ability to service global, regional, and local customers Leading technology platforms Outstanding 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, Q3 ’21 +15.5% and natural flavors Ingredients YTD ’21 +1
Slide 12: Asia Pacific Group
Asia Pacific Group Portfolio of food and beverage flavors and colors R&D centers in Singapore, Thailand, and China to support local and regional customer base Ability to deliver localized solutions and technology platforms 12
Slide 13: Asia Pacific Overview
Asia Pacific Overview 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
Slide 14: 2021 Q3 Segment Results
2021 Q3 Segment Results Local Currency Adjusted Revenue* Local Currency Adjusted* Commentary: Q3 YTD Color Group third quarter revenue increase was driven by the Color +18.1% +7.3% continued recovery in Personal Care and strong demand for natural food and beverage colors. Operating income was up in
Slide 15: 2021 Q3 Consolidated Results
2021 Q3 Consolidated Results Q3 YTD Local Currency Adjusted Revenue* +13.0% +8.6% Local Currency Adjusted Operating Income* +13.9% +6.5% Local Currency Adjusted Diluted EPS* +9.1% +6.8% Local Currency Adjusted EBITDA* +12.9% +6.9% Q3 consolidated local currency adjusted revenue was up due to strong
Slide 16: Capital Allocation
Capital Allocation $250 Prioritize ROI capital projects $200 $9 $31 Growth in dividend payout $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 capital re
Slide 17: 2021 Financial Outlook
2021 Financial Outlook Metric Guidance Comments • Includes approximately 25 cents of divestiture & other related costs, operational improvement plan costs, and the results of the Diluted EPS (GAAP) Mid-to-high single digit growth divested operations • At current rates FX provides a 7 cent benefit •
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: Appendix
APPENDIX* *Amounts in thousands, except percentages and per share amounts
Slide 20: 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 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Revenue (GAAP) $ 344,287 $ 323,566 $ 1,039,816 $ 997,333 Revenue of the divested product lines (1,622) (23,588) (29,399) (
Slide 22: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended September 30, Nine Months Ended September 30,2021 Foreign Adjusted Foreign Adjusted Exchange Local Exchange Local Revenue Total Rates Adjustments* Currency Total Rates Adjustments* Currency Flavors & Extracts (0.7%) 1.1% (13.4%) 11.6% 1.6% 2.4%
Slide 23: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 % Change 2021 2020 % Change Operating income (GAAP) $ 46,958 $ 41,155 14.1% $ 129,608 $ 117,841 10.0% Depreciation and amortization 13,011 12,309 38,828 36,831 Depreciation and amortizatio
Slide 24: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Foreign Foreign Exchange Local Exchange Local Revenue Total Rates Currency Total Rates Currency Flavors, Extracts and Flavor Ingredients 17.4% 1.9% 15.5% 15.1% 3.1% 12.0% Natural Ingredien
Slide 25: Q3 Divested Operations
Q3 Divested Operations Results by Segment Three Months Ended September 30, Adjusted Adjusted Revenue 2021 Adjustments* 2021 2020 Adjustments* 2020 Flavors & Extracts $ 181,667 $ (1,312) $ 180,355 $ 182,866 $ (22,978) $ 159,888 Color 139,239 (310) 138,929 116,414 (669) 115,745 Asia Pacific 33,442 - 3
Slide 26: Q3 YTD Divested Operations
Q3 YTD Divested Operations Results by Segment Nine Months Ended September 30, Adjusted Adjusted Revenue 2021 Adjustments* 2021 2020 Adjustments* 2020 Flavors & Extracts $ 561,979 $ (27,616) $ 534,363 $ 552,975 $ (75,165) $ 477,810 Color 408,166 (1,638) 406,528 381,205 (13,242) 367,963 Asia Pacific 9
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