Slide 1: Third Quarter 2021 Earnings Presentation
Third Quarter 2021 Earnings Presentation October 28, 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. Third Quarter Highlights 2. Segment Performance 3. Financial Review 4. Guidance 5. Q&A 3
Slide 4: Third Quarter 2021 Results
Third Quarter Q3 Q3 vs Prior Year 2021 Results $ in millions 2021 2020 % Net Sales 376.8 331.7 45.1 13.6% Adj. EBITDA(1) 119.5 127.6 (8.1) (6.3)% Performance Highlights Adj. EBITDA(1) 31.7% 38.5% -680 bps Margin ▪ Q3 revenue reflects markedly higher volumes and prices in Engineered Polymers and Indu
Slide 5: Performance Chemicals
Performance $ in millions Q3 2021 Q3 2020 vs Prior Year % Chemicals Net Sales 258.7 187.9 70.8 37.7% Engineered Polymers 52.9 25.3 27.6 109.1% Industrial Specialties 132.5 90.1 42.4 47.1% Performance Highlights Pavement Technologies 73.3 72.5 0.8 1.1% Segment EBITDA 63.1 47.2 15.9 33.7% ▪ Sales of $
Slide 6: Performance Materials
Performance Q3 Q3 vs Prior Year Materials $ in millions 2021 2020 % Net Sales 118.1 143.8 (25.7) (17.9)% Segment EBITDA 56.4 80.4 (24.0) (29.9)% Performance Highlights Segment EBITDA 47.8% 55.9% -810 bps Margin ▪ Sales of $118.1 million down 17.9% ▪ Sales of our automotive activated carbon products
Slide 7: Third Quarter 2021 Financial Summary
Third Quarter 2021 Financial Summary Q3 Q3 vs PY Q3 YTD Q3 YTD vs PY $ in millions except percentage and EPS 2021 2020 ∆% 2021 2020 ∆% Consolidated Income Statement: Net sales $376.8 $331.7 13.6% $1,055.5 $890.5 18.5% Gross profit $141.8 $139.6 1.6% $407.8 $338.1 20.6% % margin 37.6% 42.1% -450 bps
Slide 8: Third Quarter 2021 Financial Metrics
Third Quarter 2021 Financial Metrics Highlights Free cash flow Trade working capital % of sales (1) $ in millions $ in millions Free cash flow (FCF) ▪ Solid FCF of $75 million $- enabled $32 million of share Q4 repurchases in the quarter at an average price of $77.79 $- 122 263 277 $- $- $- … 233 21
Slide 9: Full Year 2021 Updated Guidance
Full Year 2021 Updated Guidance ($M) FY 2019 FY 2020 FY 2021 Item Actual Actual Guidance Revenue $1,293 $1,216 $1,320 - $1,360 Updated Adjusted EBITDA (1) $397 $398 $405 - $420 guidance Capital expenditures $115 $82 $100 – 115 Free cash flow (1) $161 $270 >$200 Net debt ratio (1) 2.8x 2.5x 2.0 – 2.5
Slide 10: 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 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 September 30, Nine Months Ended September 30, In millions, except per data (unaudited) 2021 2020 2021 2020 Net income (loss) (GAAP) $ (4.2) $ 69.9 $ 88.8 $ 135.4 Restructuring and other (income) char
Slide 14: 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 September 30, Nine Months Ended September 30, In millions (unaudited) 2021 2020 2021 2020 Net income (loss) (GAAP) $ (4.2) $ 69.9 $ 88.8 $ 135.4 Provision (benefit) for income taxes (4.8) 18.2 37.7 33.3 Inter
Slide 15: 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 September 30, Nine Months Ended September 30, In millions (unaudited) 2021 2020 2021 2020 Adjusted EBITDA (Non-GAAP) $ 119.5 $ 127.6 $ 342.6
Slide 16: Reconciliation of Cash Flow from Operations to Free Cash Flow
Reconciliation of Cash Flow from Operations (GAAP) to Free Cash Flow (Non-GAAP) In millions (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cash Flow from Operations $ 100.1 $ 90.0 $ 217.0 $ 199.1 Less: Capital Expenditures 25.5 16.5 66.4 51.0 Free Ca
Slide 17: 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, 2021 Notes payable and current maturities of long-term debt $ 19.5 Long-term debt including finance lease obligations 1,254.4 Debt issuance costs 11.5 Total Debt 1,285.4 Less: Cash and ca
Slide 18: 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