Slide 1: Second Quarter 2019 Earnings Presentation
PURIFY I PROTECT I ENHANCE Second Quarter 2019 Earnings Presentation July 25, 2019
Slide 2: Disclaimer
Disclaimer: This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements generally include the words “may,” “could,” “should,” “believes,” “plans,” “intends,” “targets,” “will,” “expects,” “suggest
Slide 3: Today's Agenda
Today’s Agenda Second Quarter Highlights Segment Performance Financial Review Guidance Q&A 3
Slide 4: Second Quarter 2019 Results
Second Quarter 2019 Results vs Prior Year $ in millions 2Q 2019 2Q 2018 ∆ ∆% Performance Highlights Net Sales 352.8 308.6 44.2 14.3% Adjusted EBITDA(1) 108.3 89.4 18.9 21.1% Benefits of combined organic and inorganic growth strategy Adjusted EBITDA(1) 30.7% 29.0% +170 bps Margin Despite global m
Slide 5: Performance Chemicals
Performance Chemicals vs Prior Year $ in millions 2Q 2019 2Q 2018 ∆ ∆% Performance Highlights Net Sales 229.7 212.5 17.2 8.1% Revenue increase of 8%; full quarter of Capa Industrial Specialties 101.1 117.8 (16.7) (14.2)% Oilfield Technologies 29.7 29.1 0.6 2.1% Industrial Specialties: Decreases
Slide 6: Performance Materials
Performance Materials vs Prior Year $ in millions 2Q 2019 2Q 2018 ∆ ∆% Performance Highlights Net Sales 123.1 96.1 27.0 28.1% Record revenue increase of 28% Automotive Technologies 113.9 86.1 27.8 32.3% Process Purification 9.2 10.0 (0.8) (8.0)% Accelerated sales in China – despite sharply reduc
Slide 7: Second Quarter 2019 Financial Results
Second Quarter 2019 Financial Results Key Income Statement Metrics 2Q 2Q vs PY 1H 1H vs PY $ in millions except EPS & shares outstanding 2019 2018 2019 2018 ∆% ∆% Net Sales (GAAP) 352.8 308.6 14.3% 629.6 543.8 15.8% Adjusted EBITDA (Non-GAAP)(1) 108.3 89.4 21.1% 191.8 156.5 22.6% Adjusted EBITDA Mar
Slide 8: Second Quarter 2019 Financial Results
Second Quarter 2019 Financial Results Key Balance Sheet & Cash Flow Metrics $ in millions June 30, 2019 December 31, 2018 Cash & cash equivalents 53.3 77.5 Restricted investment (related to finance lease)(1) 72.2 71.2 Total debt including finance lease obligation(2) 1,393.2 758.9 Net debt(3) 1,267.7
Slide 9: 2019 Outlook and Guidance
2019 Outlook and Guidance ($M) PERFORMANCE CHEMICALS: Item FY18 Actual FY19 Guidance Lower revenues in industrial specialties partially offset by price increases and shift to higher margin applications Revenue $1,133.6 $1,300 to $1,360 Growth in pavement technologies if Adjusted EBITDA(1) $320.5
Slide 10: For More Information
PURIFY │ PROTECT│ENHANCE For More Information Investors Dan Gallagher (843) 740-2126 Media Jack Maurer (843) 746-8242 Thank you for your interest in Ingevity! 10
Slide 11: Appendix
Appendix 11
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures Ingevity has presented certain financial measures, defined below, which have not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and has provided a reconciliation to the most directly comparable financial measure calculated in accor
Slide 13: Reconciliation of Net Income (Loss) (GAAP) to Adjusted Earnings (Loss) (Non-GAAP)
Reconciliation of Net Income (Loss) (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) Three Months Ended June 30, Six Months Ended June 30, In millions, except per data (unaudited) 2019 2018 2019 2018 Net income (loss) $ 56.8 $ 52.2 $ 79.5 $ 88.0 Less: Net income (loss) attributable to noncontrolling in
Slide 14: Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) Three Months Ended June 30, Six Months Ended June 30, In millions (unaudited) 2019 2018 2019 2018 Net income (loss) (GAAP) $ 56.8 $ 52.2 $ 79.5 $ 88.0 Provision (benefit) for income taxes 15.9 12.4 15.9 22.1 Interest expense, net 13.1
Slide 15: Reconciliation of SG&A (GAAP) to Core SG&A (Non-GAAP)
Reconciliation of Selling, General and Admin (SG&A) (GAAP) to Core SG&A (Non-GAAP) In millions (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 SG&A (GAAP) $ 42.5 $ 35.9 $ 81.6 $ 62.0 Amortization related to acquisitions 7.1 3.5 12.1 4.2 Legal costs associated wi