Sensient Technologies Corporation · NYSE:SXT
Sensient Technologies — Q3 2019 Earnings Presentation
23 slides from Sensient Technologies's earnings presentation, Oct 18, 2019
Slide 1: Third Quarter, 2019 Sensient Technologies Corporation
Third Quarter, 2019 Sensient Technologies Corporation
Slide 2: Forward-looking statements
sensient.com 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 concerning the
Slide 3: Non-GAAP Financial Measures
sensient.com 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 (“2017 Tax Legislat
Slide 4: Innovative Technologies Creating Unique Solutions
sensient.com Innovative Technologies Creating Unique Solutions Ingredient solutions serving Food & Beverage, Cosmetic, Pharmaceutical, and Industrial marketsApplications expertise and solutions-based sellingHigh impact relative to costTechnically-driven products that are difficult to replaceStrong c
Slide 5: Global Revenues by Group
sensient.com Global Revenues by Group ColorsFood & Beverage ColorsCosmeticInks & IndustrialPharmaceutical Excipients Flavors & FragrancesSweetSavoryBeverageNatural IngredientsFragranceBionutrients Asia Pacific * 2018 Global Revenues include intercompany sales which are eliminated on a consolidated b
Slide 6: Sensient Colors
Sensient Colors sensient.com Global market leaderNatural color innovatorGrowing end marketsUnmatched innovation & applications expertise
Slide 7: Color Group Markets Served
Color Group Markets ServedPercent of Group Revenues (‘18) sensient.com 55% 28% 5% 12% BUSINESS POSITION TREND Food & Beverage Colors Top player Natural colors Cosmetic Top player Natural solutions,Innovation Inks & Industrial Top player Innovation,Sustainability Pharmaceutical Excipients Specialty p
Slide 8: Color Group
Color Group sensient.com Higher operating margin through mix improvementIncreased operating incomeWell-positioned to take advantage of strong commercial trendsCulled non-strategic, low margin business Operating Incomeand Margins in USD millions
Slide 9: Sensient Flavors & Fragrances
Sensient Flavors & Fragrances sensient.com Broad product offeringUnique ability to service global, regional, and local customersLeading technology platformsUnmatched applications expertise
Slide 10: Flavors & Fragrances Group Markets Served
Flavors & Fragrances Group Markets ServedPercent of Group Revenues (‘18) sensient.com 18% 8% 30% 14% 7% 23% BUSINESS POSITION TREND Sweet Top 10 Clean labels, natural flavors, extracts, sugar-free, salt-reduction, taste-masking, organic Savory Top 10 Beverage Top 10 Natural Ingredients Top player Fr
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 efficienciesEmphasis on high-value added product portfolio mix and cost optimization to achieve margin improvem
Slide 12: Asia Pacific Group
Asia Pacific Group Sales of Flavors and Colors in the Asia Pacific markets are reported as a separate segment since it is managed on a geographic basisManufacturing capabilities in Australia, New Zealand, China, Japan, Philippines; R&D capabilities in Singapore, Thailand, Indonesia, and ChinaAnnual
Slide 13: 2019 Q3 Highlights
sensient.com 2019 Q3 Highlights Strong demand for natural colors continued in the quarter at near double digit growth in all regions except EU Cosmetic market still soft; expect gradual improvement to order patterns over the next two quartersFinished flavors and extract product line sales remained s
Slide 14: 2019 Q3 Consolidated Results
sensient.com 2019 Q3 Consolidated Results Q3 YTD Local Currency Revenue* (6.0%) (3.2%) Local Currency Operating Income* (22.0%) (12.3%) Local Currency Diluted EPS* (20.0%) (13.4%) Local Currency Adjusted EBITDA* (15.0%) (9.4%) Q3 Revenue: Consolidated revenue decreased due to lower sales in flavor i
Slide 15: 2019 Q3 Segment Results
sensient.com 2019 Q3 Segment Results Local Currency Revenue* Q3 YTD Color (4.2%) (0.8%) Flavors & Fragrances (7.6%) (5.2%) Asia Pacific (5.3%) (3.6%) Color Group third quarter revenue decreased due to lower sales resulting from soft market conditions in Food and Beverage in North America and Europe
Slide 16: Capital Allocation
sensient.com Capital Allocation Prioritize ROI capital projectsMaintain dividend payout ratioDebt reduction to maintain targeted leverageMaintain financial flexibility to pursue M&AExcess capital returned to shareholders through opportunistic share repurchases
Slide 17: 2019 Financial Outlook
2019 Financial Outlook sensient.com Updated Full Year 2019 Guidance: Metric Updated Guidance Diluted EPS $2.90 - $3.00 Adjusted EBITDA Below 2018 Adjusted EBITDA
Slide 18: Why Invest?
Why Invest? sensient.com Strong competitive position‘Sticky’ business (& low portion of customer costs)Global presenceExposure to stable and growing marketsFocus on improving returns and on growth
Slide 19: EPS Calculations may not foot due to rounding differences
sensient.com EPS Calculations may not foot due to rounding differences
Slide 20: Percentage change in 2019 results compared to 2018
The following table summarizes the percentage change in the 2019 results compared to the 2018 results for the corresponding periods: Three Months Ended September 30, ‘Nine Months Ended September 30, Foreign Foreign Exchange Local Exchange Local Revenue Total Rates Currency Total Currency Flavors & F
Slide 21: ESG Information
ESG Information sensient.com Environmental Sensient is committed to the principles of sound environmental stewardship and the responsible and sustainable use of energy and natural resources. Established 10-year goals to reduce Energy, Water, and Hazardous Waste Intensity by 2025Seed-to-shelf program
Slide 22: Contact Information
sensient.com Contact Information Contact: Amy AgallarE-mail: investor.relations@sensient.comPhone: 1 414 347 3827Website: www.sensient.com
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