Slide 1: First Quarter 2018 Earnings Presentation
First Quarter 2018 Earnings Presentation May 3, 2018
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: Agenda
Agenda First Quarter Highlights Segment Performance Financial Review Q&A 3
Slide 4: First Quarter 2018 Results
First Quarter 2018 Results 1Q 1Q vs Prior Year $ in millions 2018 2017 Performance Highlights ∆ ∆% Net Sales 235.2 218.5 16.7 7.6% Improved market dynamics and product Adjusted EBITDA (1) 67.1 50.2 16.9 33.7% demand, strong execution, and cost Adjusted EBITDA 28.5% 23.0% +550 bps discipline drove
Slide 5: Performance Chemicals
Performance Chemicals 1Q 1Q vs Prior Year $ in millions 2018 2017 Performance Highlights ∆ ∆% Net Sales 139.7 135.1 4.6 3.4% Oilfield Technologies 22.4 18.3 4.1 22.4% Oilfield Technologies: U.S. rig count climbed to 993 vs. 929 in previous quarter Pavement Technologies 18.5 17.0 1.5 8.8% and 824 i
Slide 6: Performance Materials
Performance Materials 1Q 1Q vs Prior Year $ in millions 2018 2017 Performance Highlights ∆ ∆% Net Sales 95.5 83.4 12.1 14.5% Automotive Technologies 85.9 74.6 11.3 15.1% Strong revenues on increasingly stringent regulations for gasoline vapor emissions Process Purification 9.6 8.8 0.8 9.1% in Nort
Slide 7: First Quarter 2018 Financial Results: Key Income Statement Metrics
First Quarter 2018 Financial Results Key Income Statement Metrics 1Q 1Q vs PY $ in millions except EPS & shares outstanding 2018 2017 ∆% Net Sales (GAAP) 235.2 218.5 7.6% Adjusted EBITDA (Non-GAAP)(1) 67.1 50.2 33.7% Adjusted EBITDA Margin (Non-GAAP)(1) 28.5% 23.0% 550 bps Performance Chemicals Net
Slide 8: First Quarter 2018 Financial Results: Key Balance Sheet & Cash Flow Metrics
First Quarter 2018 Financial Results Key Balance Sheet & Cash Flow Metrics $ in millions March 31, 2018 December 31, 2017 Cash & cash equivalents 55.0 87.9 Restricted investment (related to capital lease)(1) 71.3 71.3 Total debt including capital lease obligation(2) 755.0 455.0 Net debt(3) 628.7 295
Slide 9: 2018 Outlook - Update
2018 Outlook - Update PERFORMANCE CHEMICALS: Increased revenues and earnings due to: o Strong recovery in oilfield o Global growth in pavement technologies o Improving outlook for industrial specialties market conditions o G-P pine chemicals acquisition synergy acceleration o Continued CTO tailwin
Slide 10: 2018 Revised Guidance
2018 Revised Guidance ($M; includes G-P pine chemicals acquisition) Item FY17 Actual Initial FY18 Guidance 1Q Revised FY18 Guidance Revenue $972.4 $1,070 to $1,130 $1,100 to $1,130 Adjusted EBITDA (1) $242.7 $285 to $305 $293 to $307 Adjusted tax rate (1) 31.0% 22 - 24% 22 - 24% Capital expenditures
Slide 11: For More Information
For More Information Thank you for your interest in Ingevity! Investors Dan Gallagher (843) 740-2126 Media Jack Maurer (843) 746-8242 11
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 March 31, In millions, except per data (unaudited) 2018 2017 Net income (loss) $ 35.8 $ 23.0 Less: Net income (loss) attributable to noncontrolling interests 5.0 4.0 Net income (loss) attributable to
Slide 15: Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) Three Months Ended March 31, In millions (unaudited) 2018 2017 Net income (loss) (GAAP) $ 35.8 $ 23.0 Provision (benefit) for income taxes 9.7 11.0 Interest expense, net 6.1 3.3 Separation costs — 0.3 Depreciation and amortization 11.
Slide 16: Reconciliation of Segment Operating Profit (GAAP) to Segment EBITDA (Non-GAAP)
Reconciliation of Segment Operating Profit (GAAP) to Segment EBITDA (Non-GAAP) Three Months Ended In millions (unaudited) March 31, Performance Materials 2018 2017 Segment operating profit (GAAP) $ 36.9 $ 29.5 Depreciation and amortization 5.3 5.0 Segment EBITDA (Non-GAAP) $ 42.2 $ 34.5 Net sales $