Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — Q2 2023 Earnings Presentation
25 slides from Ingersoll Rand's earnings presentation, Aug 3, 2023
Slide 1: Q2 2023 Earnings Presentation
Q2 2023 Earnings Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation by Ingersoll Rand Inc. (the “Company” or “Ingersoll Rand”) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related the Company‘s expectations regarding the performance
Slide 3: Premier industrial company with iconic brands and market-leading positions
Our Economic Growth Engine Continues to We are a Deliver Compounding Results 1 Premier industrial Double-digit growth in Revenue, Adjusted EBITDA1, Adjusted EPS1, and Free Cash Flow1 company with iconic brands and Leveraging IRX for Continuous Improvement market-leading 2 Introducing the 2022 Sustai
Slide 4: Our Economic Growth Engine Continues to Deliver Compounding Annual Results
Our Economic Growth Engine Continues to Deliver Compounding Annual Results High Performance Premier Growth Megatrends Sustainability Digitization Quality of Life Execution Process Compounder Ownership Double Digit Organic Mindset Earnings Growth Growth Product and Demand IIoT Service Enablers Genera
Slide 5: Economic Growth Engine in Action: Organic Growth & Margin Expansion (i2V)
Economic Growth Engine in Action: Organic Growth & Margin Expansion (i2V) Examples of Leveraging Product Localization and i2V in China to Drive Organic Growth Organic Growth Through Localization M&A + i2V = Growth Through New Product Development • Leverage in-region strength of Ingersoll Rand brand
Slide 6: On Track to Deliver Our Inorganic Growth Commitment
On Track to Deliver Our Inorganic Growth Commitment Announced Transaction: Howden Roots LLC (“Roots”) Funnel Update Deal Update Expands Low-Pressure Technology & Adds • Purchase Price: ~$300M Centrifugal Compression Capabilities >5x Low-Pressure Technology • Status: Received US regulatory Weighted f
Slide 7: Progress Powered by Sustainable Performance
Progress Powered by Sustainable Performance1 Introducing our 2022 Sustainability Report, Leveraging IRX to Continue Delivering Industry-Leading Sustainability Results Industry Leading Results Pioneer in Employee Ownership Leading Sustainably #1 in North America ~$275M Equity awarded to employees sin
Slide 8: Q2 2023 Highlights
IRX is our Competitive Differentiator Q2 2023 Highlights1 Continued momentum • Organic Orders: Up 5% YoY Orders/Revenue • Organic Revenue2: Up 12% YoY • Q2’23 ending backlog up ~12% YoY and ~5% QoQ • Book to Bill 1.03x $425M with margin of 25.2% • Up $90M YoY, an increase of 27% Adj. EBITDA2 • 190 b
Slide 9: Q2 2023 vs. Q2 2022 Financial Performance
Q2 2023 vs. Q2 2022 Financial Performance ($M, Excluding EPS) • Adj. Diluted EPS1,2 growth of 25% Book to Bill of 1.03x including ($0.04) of interest expense Backlog ~45% higher than 12/31/21 headwinds 9 1 Non-GAAP measure (definitions and/or reconciliations in appendix). 2 Adjusted Diluted EPS defi
Slide 10: Q2 2023 Financial Performance
Q2 2023 Financial Performance ($M, Excluding Leverage) Liquidity & Leverage • Assigned an investment grade first-time Issuer Default Rating of ‘BBB-’ by Fitch • Total available liquidity of $3.2B including: • Cash and cash equivalents: $1.2B • Available credit facilities: $2.0B • Leverage improvemen
Slide 11: Industrial Technologies and Services
Industrial Technologies and Services Broad Range of Compressor, Vacuum, and Blower Solutions as well as Industrial Technologies Including Power Tools and Lifting Equipment Q2 2023 vs. Q2 2022 ($M) Q2 2023 vs. Q2 2022 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY
Slide 12: Precision and Science Technologies
Precision and Science Technologies Highly Specialized Fluid Management Solutions Including Precision Liquid and Gas Pumps, and Niche Compression Technologies Q2 2023 vs. Q2 2022 ($M) Q2 2023 vs. Q2 2022 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆ Revenue $308
Slide 13: Raising 2023 Guidance
Raising 2023 Guidance1 Key Metrics2 Full Year 2023 Assumptions Change at • 2023 incremental margins of ~35% Midpoint • Interest Expense: ~$165M Initial Guidance Previous Guidance Revised Guidance vs. as of 2/21/23 as of 5/4/23 as of 8/3/23 • Adj. Tax Rate: ~23% Previous Guidance • Capex: ~2% of reve
Slide 14: Key Takeaways
Continued robust performance in Q2 2023 • Delivering record results while navigating ongoing macro challenges 01 • Ongoing backlog momentum provides confidence in updated guidance • Prepared and nimble in the event of a downturn Key Takeaways Continuing to differentiate Ingersoll Rand as an investme
Slide 15: Appendix
peploy Talent IX Append fm 8 § 4 8 8 IR. Ingersoll Rand.
Slide 16: Non-U.S. GAAP Measures of Financial Performance
Non-U.S. GAAP Measures of Financial Performance In addition to consolidated GAAP financial measures, Ingersoll Rand reviews various non-GAAP financial measures, including “Organic Revenue Growth,” “Adjusted EBITDA,” “Adjusted Net Income,” “Adjusted Diluted EPS” and “Free Cash Flow.” Ingersoll Rand b
Slide 17: Q2 2023 Financial Performance – As Reported
Q2 2023 Financial Performance – As Reported ($M, excl. EPS) 17 1 Net Income as reported defined as Net Income Attributable to Ingersoll Rand Inc. 2 Diluted EPS defined as (Net Income Attributable to Ingersoll Rand Inc.) / (Diluted Average Shares Outstanding).
Slide 18: Adjusted Financial Information
Adjusted Financial Information 18
Slide 19: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income 19
Slide 20: Reconciliation of Diluted Net Income Per Share to Adjusted Diluted Net Income Per Share
Reconciliation of Diluted Net Income Per Share to Adjusted Diluted Net Income Per Share from Continuing Operations 20
Slide 21: Reconciliation of Net Income to Adjusted Earnings per Share
Reconciliation of Net Income to Adjusted Earnings per Share 21
Slide 22: Reconciliation of Net Income to Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Income to Adjusted EBITDA and Adjusted Income from Continuing Operations, Net of Tax and Cash Flows from Operating Activities from Continuing Operations to Free Cash Flow 22
Slide 23: Orders and Revenue by Segment and Reconciliation of Segment Adjusted EBITDA to Net Income
Orders and Revenue by Segment and Reconciliation of Segment Adjusted EBITDA to Net Income 23
Slide 24: Orders and Revenue Growth by Segment
Orders and Revenue Growth by Segment1 24
Slide 25: Supplemental Footnote Disclosures to Slide 7
Supplemental Footnote Disclosures to Slide 7 2 Receipt of an S&P Global ESG Score does not represent a sponsorship, endorsement or recommendation on the part of S&P Global to buy, sell or hold any security and a decision to invest in any subject company should not be made based on the receipt of any