Slide 1: Second Quarter 2021 Earnings Presentation
Second Quarter 2021 Earnings Presentation July 29, 2021
Slide 2: Disclaimer
Disclaimer: This presentation contains “forward-looking statements” within the meaning of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements generally include the words “will,” “plans,” “intends,” “targets,” “expects,” “outlook,
Slide 3: Today's Agenda
Today’s Agenda 1. Second Quarter Highlights 2. Segment Performance 3. A Look Back at Q2 2019 4. Financial Review 5. Revised Guidance 6. Q&A 3
Slide 4: Second Quarter 2021 Results
Second Quarter Q2 Q2 vs Prior Year $ in millions 2021 Results 2021 2020 % Net Sales 358.4 270.6 87.8 32.4% Adj. EBITDA(1) 117.7 67.2 50.5 75.1% Performance Highlights Adj. EBITDA(1) 32.8% 24.8% +800 bps Margin Strong Q2 results driven by higher volumes and supported by price increases across both
Slide 5: Performance Materials
Performance $ in millions Q2 Q2 vs Prior Year Materials 2021 2020 % Net Sales 126.0 84.4 41.6 49.3% Segment EBITDA 61.3 23.3 38.0 163.1% Performance Highlights Segment EBITDA 48.7% 27.6% +2,110 bps Margin Sales of $126 million; up 49.3% Strong sales of our automotive activated carbon products us
Slide 6: Performance Chemicals
Performance $ in millions Q2 2021 Q2 2020 vs Prior Year % Chemicals Net Sales 232.4 186.2 46.2 24.8% Pavement Technologies 67.7 63.9 3.8 5.9% Industrial Specialties 120.1 90.7 29.4 32.4% Performance Highlights Engineered Polymers 44.6 31.6 13.0 41.1% Sales of $232.4 million; up 24.8% Segment EBITD
Slide 7: A Look Back at Q2 2019
A Look Back at $ in millions Q2 2021 Q2 2019 vs Q2 2019 % Q2 2019 Net Sales 358.4 352.8 5.6 1.6% Performance Materials 126.0 123.1 2.9 2.4% Performance Chemicals 232.4 229.7 2.7 1.2% Performance Highlights Pavement Technologies 67.7 64.6 3.1 4.8% Industrial Specialties 120.1 130.8 (10.7) (8.2)% Sa
Slide 8: Second Quarter 2021 Financial Summary
Second Quarter 2021 Financial Summary vs PY vs PY $ in millions except EPS Q2 2021 Q2 2020 H1 2021 H1 2020 ∆% ∆% Consolidated Income Statement: Net sales $358.4 $270.6 32.4% $678.7 $558.8 21.5% Gross profit $139.8 $83.9 66.6% $266.0 $198.5 34.0% % margin 39.0% 31.0% +800 bps 39.2% 35.5% +370 bps Cor
Slide 9: Second Quarter 2021 Financial Metrics
Second Quarter 2021 Financial Metrics Highlights Free cash flow Trade working capital % of sales (1) $ in millions 0 $ in millions Free cash flow (FCF) Strong FCF of $42 million $… driven by higher Q2 earnings 122 Q4 0 000 partially offset by seasonal 0 working capital build 263 276 00 0 233 0 217
Slide 10: 2021 Revised Guidance
2021 Revised Guidance ($M) FY 2019 FY 2020 Q1 Q2 Revised % Item Actual FY21 Guidance FY21 Guidance Actual Revenue $1,293 $1,216 $1,275 - $1,325 $1,320 - $1,360 Adjusted EBITDA (1) $397 $398 $410 - $430 $425 - $440 Capital expenditures $115 $82 $100 – 120 $100 – 120 Free cash flow (1) $161 $270 >$200
Slide 11: For More Information
For More Information Investors Bill Hamilton (843) 740-2138 Media Caroline Monahan (843) 740-2068 Thank you for your interest in Ingevity.
Slide 12: Appendix
Appendix 12
Slide 13: 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 14: 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) 2021 2020 2021 2020 Net income (loss) (GAAP) $ 44.3 $ 20.2 $ 93.0 $ 65.5 Restructuring and other (income) charges (1) 4.3 7
Slide 15: Reconciliation of Net Income (Loss) (GAAP) to Adjusted EBITDA (Non-GAAP)
Reconciliation of Net Income (Loss) (GAAP) to Adjusted EBITDA (Non-GAAP) Three Months Ended June 30, Six Months Ended June 30, In millions (unaudited) 2021 2020 2021 2020 Net income (loss) (GAAP) $ 44.3 $ 20.2 $ 93.0 $ 65.5 Provision (benefit) for income taxes 29.4 5.2 42.5 15.1 Interest expense, ne
Slide 16: Reconciliation of Provision (Benefit) for Income Taxes
Reconciliation of Provision (Benefit) for Income Taxes (GAAP) to Provision (Benefit) for Income Taxes on Adjusted Earnings (loss) (Non-GAAP) Three Months Ended June 30, Six Months Ended June 30, In millions (unaudited) 2021 2020 2021 2020 Adjusted EBITDA (Non-GAAP) $ 117.7 $ 67.2 $ 223.1 $ 159.0 Dep
Slide 17: Reconciliation of Cash Flow from Operations
Reconciliation of Cash Flow from Operations (GAAP) to Free Cash Flow (Non-GAAP) In millions (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cash Flow from Operations $ 65.8 $ 48.9 $ 116.9 $ 109.1 Less: Capital Expenditures 23.9 15.0 40.9 34.5 Free Cash Flow $ 41
Slide 18: Calculation of Net Debt to Adjusted EBITDA Ratio
Calculation of Net Debt to Adjusted EBITDA Ratio (Non-GAAP) In millions, except ratios (unaudited) June 30, 2021 Notes payable and current maturities of long-term debt $ 19.5 Long-term debt including finance lease obligations 1,258.7 Debt issuance costs 12.1 Total Debt 1,290.3 Less: Cash and cash eq
Slide 19: Calculation of Historical Net Debt Ratio
Calculation of Historical Net Debt Ratio (Non-GAAP) 2020 2021 In millions, except ratios (unaudited) 2016 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Net Debt(1) $ 391.7 $ 295.8 $ 610.2 $ 1,121.0 $ 1,113.3 $ 1,078.5 $ 1,032.0 $ 974.8 $ 982.6 $ 981.8 Adjusted EBITDA (2) 202.4 242.7 320.5 396.9 405.6 364.5 378.1