Slide 1: Second Quarter 2021 Investor Presentation
Second 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) 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 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 Q2 ’21 +3.6% • Unique value proposition for Pharmaceutical customers includes YTD ’21 +2
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, Q2 ’21 +11.2% and natural flavors Ingredients YTD ’21 +1
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 Q2 Segment Results
2021 Q2 Segment Results Local Currency Adjusted Revenue* Local Currency Adjusted* Commentary: Q2 YTD Color Group second quarter revenue increase was primarily Color +7.1% +2.3% driven by the start of the color cosmetic market recovery in Personal Care. Operating income was up in the quarter primaril
Slide 14: 2021 Q2 Consolidated Results
2021 Q2 Consolidated Results Q2 YTD Local Currency Adjusted Revenue* +9.1% +6.4% Local Currency Adjusted Operating Income* +5.8% +2.9% Local Currency Adjusted Diluted EPS* +8.6% +5.6% Local Currency Adjusted EBITDA* +6.0% +4.0% Q2 consolidated local currency adjusted revenue was up due to continued
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 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 10 cent benefit •
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 Six Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Revenue (GAAP) $ 335,827 $ 323,090 $ 695,529 $ 673,767 Revenue of the divested product lines (2,207) (28,217) (27,777) (64,802) Adjusted revenue
Slide 21: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Foreign Adjusted Foreign Adjusted Exchange Local Exchange Local Revenue Total Rates Adjustments* Currency Total Rates Adjustments* Currency Flavors & Extracts (2.3%) 3.7% (15.1%) 9.1% 2.8% 3.1% (9.3%
Slide 22: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 % Change 2021 2020 % Change Operating income (GAAP) $ 35,753 $ 42,125 (15.1%) $ 82,650 $ 76,686 7.8% Depreciation and amortization 13,018 12,118 25,817 24,522 Depreciation and amortization, divested
Slide 23: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Foreign Foreign Exchange Local Exchange Local Revenue Total Rates Currency Total Rates Currency Flavors, Extracts and Flavor Ingredients 15.8% 4.6% 11.2% 14.0% 3.7% 10.3% Natural Ingredients 5.4% 0.1
Slide 24: Q2 Divested Operations
Q2 Divested Operations Results by Segment Three Months Ended June 30, Adjusted Adjusted Revenue 2021 Adjustments* 2021 2020 Adjustments* 2020 Flavors & Extracts $ 179,401 $ (1,415) $ 177,986 $ 183,611 $ (24,742) $ 158,869 Color 133,207 (792) 132,415 121,296 (3,501) 117,795 Asia Pacific 32,317 - 32,3
Slide 25: Q2 YTD Divested Operations
Q2 YTD Divested Operations Results by Segment Six Months Ended June 30, Adjusted Adjusted Revenue 2021 Adjustments* 2021 2020 Adjustments* 2020 Flavors & Extracts $ 380,312 $ (26,304) $ 354,008 $ 370,109 $ (52,187) $ 317,922 Color 268,927 (1,328) 267,599 264,791 (12,573) 252,218 Asia Pacific 66,157
Slide 26: Sensient
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