EX-99.1 2 ex99_1.htm EXHIBIT 99.1

Exhibit 99.1
Investor Presentation March 2019 Sensient Technologies Corporation

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 Company’s operations and business environment. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements and that could adversely affect the Company’s future financial performance include the following: the pace and nature of new product introductions by the Company and the Company’s customers; the Company's ability to successfully implement its strategy to create sustainable, long-term shareholder value; the Company’s ability to successfully implement its growth strategies; the outcome of the Company’s various productivity-improvement and cost-reduction efforts; the effectiveness of the Company’s past restructuring activities; changes in costs or availability of raw materials, including energy; industry and economic factors related to the Company’s domestic and international business; growth in markets for products in which the Company competes; industry and customer acceptance of price increases; actions by competitors, including increased intensity of competition; the loss of any customers in certain product lines in which our sales are made to a relatively small number of customers; product liability claims or product recalls; the costs of compliance, or failure to comply, with laws and regulations applicable to our industries and markets; changing consumer preferences and changing technologies; currency exchange rate fluctuations; estimates related to the Tax Cuts and Jobs Act and its effects on our results; and failure to complete and integrate future acquisitions or dispositions. The risks and uncertainties identified above are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company or that it currently believes to be immaterial also may adversely affect the Company. Should any known or unknown risks and uncertainties develop into actual events, these developments could have material adverse effects on our business, financial condition and results of operations. This document contains time-sensitive information that reflects management’s best analysis only as of the date of this document. Except to the extent required by applicable laws, the Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied herein will not be realized. Additional information regarding these risks can be found in our most recent Annual Report on Form 10-K and subsequent reports that we file with the SEC. FORWARD-LOOKING STATEMENTS

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 Legislation”)) and (2) percentage changes in adjusted revenue, adjusted operating income, and adjusted diluted EPS on a local currency basis (which eliminate the effects that result from translating its international operations into U.S. dollars). The Company has included each of these non-GAAP measures in order to provide additional information regarding our underlying operating results and comparable year-over-year performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures should not be considered in isolation. Rather, they should be considered together with GAAP measures and the rest of the information included in this report (including the GAAP to non-GAAP reconciliation found at the end of this report) and the Company’s SEC filings. NON-GAAP FINANCIAL MEASURES

sensient.com Innovative Technologies Creating Unique Solutions Ingredient solutions serving Food & Beverage, Personal Care, and Industrial marketsApplications expertise and solutions-based sellingHigh impact relative to costTechnically-driven products that are difficult to replaceStable and consistent end-market demandStrong consumer trendsOpportunities to expand through M&A

sensient.com Global Revenues ColorFood & Beverage ColorsPersonal Care IngredientsDigital Inks & Technical ColorsPharmaceutical Excipients Flavors & FragrancesSweetSavoryBeverageNatural IngredientsFragranceBionutrients 2018Revenue$1.4 B Sensient’s three reportable segments are the Flavors & Fragrances Group and the Color Group, which are managed on a product basis, and the Asia Pacific Group, which is managed on a geographic basis. This slide presents Sensient’s total 2018 revenues on a product basis (which is not how it manages its reportable segments) in order to provide additional information regarding our underlying operating results. Global Revenues include intercompany sales which are eliminated on a consolidated basis. 5

Geographic Revenue North America 52%Europe 25%Asia Pacific 15%RoW 8% sensient.com Sales information provided by geographic location is portrayed based on sales to third party customers.

Sensient Colors sensient.com Global market leaderGrowing end marketsUnmatched innovation & applications expertise

Color Group Markets ServedPercent of Group Revenues sensient.com 55% 28% 5% 12% BUSINESS POSITION TREND Food & Beverage Colors Top player Natural colors Personal Care Ingredients Top player Continuous Innovation Digital Inks & Technical Top player Innovation,Sustainability Pharmaceutical Excipients Specialty player Natural colors & extracts

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

Sensient Flavors & Fragrances sensient.com Broad product offeringUnique ability to service global, regional, and local customersLeading technology platformsUnmatched applications expertise

Flavors & Fragrances Group Markets ServedPercent of Group Revenues 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 Fragrance Top 10 Innovation,Natural products Bionutrients Top player Probiotics

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 improvementFocus on excellent customer service levels and commercial activities to bolster sales pipeline sensient.com

Flavors & Fragrances Competition sensient.com BeverageFlavors & Systems SavoryFlavors & Ingredients SweetFlavors & Ingredients Natural Ingredients Fragrance Bionutrients

Asia Pacific Group Sales of Flavors and Colors in the Asia Pacific markets are reported as a separate segment that is managed on a geographic basisManufacturing capabilities in Australia, New Zealand, China, Japan, Philippines; R&D capabilities in Singapore, Thailand, Indonesia, and ChinaAnnual revenues of $123 million and Operating Income of $21 millionExcellent long-term growth potential sensient.com

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 focused on sustainable supply chainEmphasis on new products and technologies that reduce environmental pollution and conserve natural resources Social Sensient strives to conduct business in an ethical manner and to make a positive contribution to society through our product offerings and business activities.Sensient’s Code of Conduct and Supplier Code of Conduct require fair employment and human rights practicesRobust product, environmental, and raw material safety programs designed to exceed industry standardsSustainable agriculture programs to encourage economic development in economically under-developed areasSupport to the communities in which we operate through volunteerism, charitable donations, sponsorships, and educational opportunities Governance Sensient is committed to maintaining the highest standards of professional conduct and strong corporate governance practices.Business built on a foundation of ethics, safety and quality, and professionalismCommitted to board diversity and refreshment: 2018 was our seventh year in a row as a “2020 Women on Boards Winning Company” for the number of women on our Board; six new independent directors have been added to our Board since 2013Executive compensation tied to performance, with approximately 70% of compensation at risk each year

sensient.com 2018 Consolidated Results Q4 Full Year Local Currency Revenue* +0.8% +1.1% Local Currency Adjusted Operating Income* (8.0%) (6.5%) Local Currency Adjusted EPS* (3.6%) +3.2% Q4: Revenue growth driven by Food Colors, offset by softness in the Cosmetics market and certain Flavors product categories. Operating income decreased due to higher input costs and product mix in Colors, ongoing Cosmetics destocking and softness in certain Flavors product categories. Significant Flavors Group headwinds from earlier in 2018 have now subsided.Full Year: Revenue growth driven by Food Colors, offset by carry-over restructuring impacts and softness in certain product categories and markets. Operating income declined due to higher input costs in Colors, higher onion costs and lower volumes in Flavors and Fragrances. * Local-currency revenue, operating income, and adjusted EPS are Non-GAAP metrics, please see our GAAP to Non-GAAP Reconciliation at sensient.com.

sensient.com 2018 Q4 & Full Year Segment Results Local Currency Revenue* Q4 Full Year Color 4.0% 4.8% Flavors & Fragrances (0.5%) (1.1%) Asia Pacific 0.2% 0.1% Color Group fourth quarter revenue increase driven by growth in Food Colors, partially offset by Cosmetics destocking. Operating income declined in the fourth quarter due to higher input costs and product mix.Flavors & Fragrances Group reported lower revenue and operating income in the fourth quarter due to softness in certain product categories. Significant headwinds from onion pricing and costs and post-restructuring volume declines have now subsided. Local Currency Adjusted Operating Income* Q4 Full Year Color (7.3%) 0.3% Flavors & Fragrances (6.7%) (15.7%) Asia Pacific (5.8%) (0.9%) * Local-currency revenue, operating income, and adjusted EPS are Non-GAAP metrics, please see our GAAP to Non-GAAP Reconciliation at sensient.com.

sensient.com Capital Allocation Prioritize ROI capital projectsPreserve consistent dividend payoutMaintain financial flexibility to pursue M&AExcess capital returned to shareholders through opportunistic share repurchases

2019 Financial Outlook sensient.com * Local-currency revenue, operating income, and adjusted EBITDA are Non-GAAP metrics, please see our GAAP to Non-GAAP Reconciliation at sensient.com.

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

sensient.com EPS Calculations may not foot due to rounding differences

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