Slide 1: Third Quarter 2024 Earnings Presentation
THIRD QUARTER 2024 EARNINGS PRESENTATION October 30, 2024
Slide 2: Use of non-GAAP financial measures and forward-looking statements
Use of non-GAAP financial measures: This presentation includes certain non‐GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non‐GAAP financial measures to GAAP financial measures are provided within the Appendix to this presentation. In
Slide 3: Agenda
AGENDA 1 Quarter highlights and updates 2 Consolidated financial results 3 Segment performance 4 Guidance 5 Q&A 3
Slide 4: Quarter Highlights and Updates
QUARTER HIGHLIGHTS AND UPDATES Luis Fernandez-Moreno takes over as interim CEO as of October 2nd Performance Materials delivered solid sales growth of 3% and 53.3% EBITDA margin as investments in operational efficiencies resulted in lower consumption of natural gas, helping to reduce input costs Adv
Slide 5: Third Quarter (Q3) Consolidated Financial Performance
THIRD QUARTER (Q3) CONSOLIDATED FINANCIAL PERFORMANCE GAAP Net loss of $107.2 million is a result of before tax restructuring charges of $86.9 million primarily related to the closure of our Crossett, Arkansas facility and $100.0 million for the termination of a long-term CTO contract Performance Hi
Slide 6: Q3 2024 Financial Metrics and Highlights
Q3 2024 FINANCIAL METRICS AND HIGHLIGHTS Net Sales by Product Line Free Cash Flow (1) $ in millions Industrial Specialties Road Technologies ▪ Performance Chemicals’ ▪ Free cash flow Advanced Polymer Technologies Performance Materials repositioning results (“FCF”) of $29 million 30% includes the fir
Slide 7: Performance Materials
PERFORMANCE MATERIALS Q3 Q3 $ % $ IN MILLIONS VS. PRIOR VS. PRIOR 2024 2023 YEAR YEAR Performance Highlights Net Sales 151.1 147.2 3.9 2.6% Sales of $151.1 million up 3%, benefited from increased pricing on Segment EBITDA 80.6 74.5 6.1 8.2% selected products Segment EBITDA Margin 53.3% 50.6% 270 bps
Slide 8: Advanced Polymer Technologies
ADVANCED POLYMER TECHNOLOGIES Q3 Q3 $ % $ IN MILLIONS 2024 2023 VS. PRIOR VS. PRIOR Performance Highlights YEAR YEAR Net Sales 48.8 42.8 6.0 14.0% Sales of $48.8 million up 14% as volumes recovered from last year’s lows Segment EBITDA 9.8 11.2 (1.4) (12.5)% ▪ Strong market growth in Asia, particular
Slide 9: Performance Chemicals
PERFORMANCE CHEMICALS $ % $ IN MILLIONS Q3 Q3 VS. PRIOR VS. PRIOR Performance Highlights 2024 2023 YEAR YEAR Sales of $177.0 million down 31% due primarily to the segment repositioning Net Sales 177.0 256.0 (79.0) (30.9)% 58.0 126.3 (68.3) (54.1)% ▪ INDUSTRIAL SPECIALTIES: Sales down 54% due primari
Slide 10: 2024 Guidance and Outlook; Interim CEO Key Priorities
2024 GUIDANCE AND OUTLOOK FY Guidance(1) INTERIM CEO KEY PRIORITIES Financial metric FY Guidance Revenue $1.40 – $1.50 billion ▪ Accelerate execution and focus Adj. EBITDA(2) $350 – $360 million of business strategies Capital expenditures $90– $100 million > $0 million (includes payment of $100 Free
Slide 11: For More Information
FOR MORE INFORMATION Investors John E. Nypaver, Jr. (843) 740 - 2002 Media Caroline Monahan (843) 740 - 2068 Thank you for your interest in Ingevity. 11
Slide 12: Appendix
APPENDIX 12
Slide 13: Definitions of 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 accordance with GAAP on the follo
Slide 14: Reconciliation of Net Income and Diluted EPS to Adjusted Earnings
Reconciliation of Net Income (Loss) (GAAP) and Diluted Earnings (Loss) Per Share (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) and Diluted Adjusted Earnings (Loss) Per Share (Non-GAAP) Three Months Ended September 30, Nine Months Ended September 30, In millions, except per data (unaudited) 2024 2023
Slide 15: Reconciliation of Net Income and Diluted EPS (footnotes)
Reconciliation of Net Income (Loss) (GAAP) and Diluted Earnings (Loss) Per Share (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) and Diluted Adjusted Earnings (Loss) Per Share (Non-GAAP) (5) As consideration for the termination of the CTO supply contract, we made a cash payment in the amount of $50.0
Slide 16: Restructuring and other (income) charges
Restructuring and other (income) charges Three Months Ended September 30, Nine Months Ended September 30, In millions 2024 2023 2024 2023 Work force reductions and other $ — $ 1.5 $ — $ 11.6 Performance Chemicals' repositioning 85.6 — 157.9 — Restructuring charges (1) $ 85.6 $ 1.5 $ 157.9 $ 11.6 Alt
Slide 17: Acquisition and other-related (income) charges
Acquisition and other-related (income) charges Three Months Ended September 30, Nine Months Ended September 30, In millions 2024 2023 2024 2023 Legal and professional service fees $ (0.1) $ 0.1 $ — $ 3.8 Acquisition-related (income) costs $ (0.1) $ 0.1 $ — $ 3.8 (1) Inventory fair value step-up amor
Slide 18: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) Three Months Ended September 30, Nine Months Ended September 30, In millions, except percentages (unaudited) 2024 2023 2024 2023 Net income (loss) (GAAP) $ (107.2) $ 25.2 $ (446.9) $ 111.4 Provision (benefit) for income taxes (30.7) 6
Slide 19: Reconciliation of Gross Profit to Adjusted Gross Profit
Reconciliation of Gross Profit (GAAP) to Adjusted Gross Profit (Non-GAAP) Three Months Ended September 30, Nine Months Ended September 30, In millions, except percentages (unaudited) 2024 2023 2024 2023 Gross Profit (GAAP) $ 129.9 $ 129.0 $ 352.8 $ 412.4 Plus: Depreciation and amortization 16.1 16.5
Slide 20: Reconciliations of SG&A to Adjusted SG&A
Reconciliations of SG&A (GAAP) to Adjusted SG&A (Non-GAAP) Three Months Ended September 30, Nine Months Ended September 30, In millions, except percentages (unaudited) 2024 2023 2024 2023 SG&A (GAAP) $ 38.7 $ 40.0 $ 127.3 $ 140.3 Research and technical expenses (GAAP) 6.7 7.8 20.8 24.6 Total SG&A (G
Slide 21: Reconciliations of Other (income) expense, net to Adjusted
Reconciliations of Other (income) expense, net (GAAP) to Adjusted Other (income) expense, net (Non-GAAP) Three Months Ended September 30, Nine Months Ended September 30, In millions, except percentages (unaudited) 2024 2023 2024 2023 Other (income) expense, net (GAAP) $ 111.8 $ 1.3 $ 167.9 $ (13.9)
Slide 22: Reconciliation of Cash Flow from Operations to Free Cash Flow
Reconciliation of Cash Flow from Operations (GAAP) to Free Cash Flow (Non-GAAP) Three Months Ended September 30, Nine Months Ended September 30, In millions (unaudited) 2024 2023 2024 2023 Cash Flow from Operations (GAAP) $ 46.5 $ 105.2 $ 64.1 $ 158.9 Less: Capital Expenditures (GAAP) 18.0 33.5 52.7
Slide 23: Calculation of Net Debt to Adjusted EBITDA Ratio
Calculation of Net Debt to Adjusted EBITDA Ratio (Non-GAAP) In millions, except ratios (unaudited) September 30, 2024 Notes payable and current maturities of long-term debt $ 100.7 Long-term debt including finance lease obligations 1,397.6 Debt issuance costs 4.5 Total Debt $ 1,502.8 Less: Cash and