Slide 1: First Quarter 2023 Earnings Call
First Quarter 2023 Earnings Call Jim Zallie President and CEO James Gray Executive Vice President and CFO
Slide 2: Non-GAAP Financial Measures and Forward-Looking Statements
Non-GAAP Financial Measures This presentation provides information about adjusted diluted earnings per share (“adjusted EPS”), adjusted operating income, adjusted effective income tax rate, and other financial measures (collectively, the “non-GAAP financial measures”) which are not measurements of f
Slide 3: CEO Perspective
Jim Zallie President and CEO First Quarter 2023 Earnings Call CEO Perspective 3
Slide 4: Exceptional start to the year with record, broad-based net sales and OI growth
Exceptional start to the year with record, broad-based net sales and OI growth across both core and specialty ingredients Q1 Net Sales Q1 Adjusted Op Income +13% +39% Absent FX impacts Absent FX impacts +16% +45% 4
Slide 5: Robust Q1 net sales performance across all regions
Robust Q1 net sales performance across all regions North America South America Asia-Pacific EMEA +16% +7% +2% +21% Absent FX Impacts 16% 12% 7% 36% 5 CONFIDENTIAL
Slide 6: Continued execution against our strategic pillars
Continued execution against our strategic pillars Specialties Growth Commercial Excellence Cost Competitiveness through Operational Excellence • Q1 global specialties net sales • Fine-tuned Pricing Centers of • Improved service delivery grew double-digits Excellence to optimize and increased special
Slide 7: Specialty growth highlights
Specialty growth highlights • All regions’ specialty net sales up year-over-year • Favorable price mix partially offset by volume and FX • Customer inventory rebalancing drove softer Q1 volumes • Stevia Reb M solutions continue to gain momentum • 2022 Clean & Simple capacity expansion exceeding comm
Slide 8: Sustainability highlights
Sustainability highlights 48% 7% of corn, tapioca, potato, stevia and pulses reduction of CO2 in Brazil from: sustainably sourced • Conversion of two Brazilian plants to • 99% of global waxy corn sustainably biomass boilers sourced • 100% renewably sourced electricity in Brazil 8 *compared to Ingred
Slide 9: Financial Update
James Gray Executive Vice President and CFO First Quarter 2023 Earnings Call Financial Update 9
Slide 10: Q1 highlights: Income statement
Q1 highlights: Income statement $ in millions, unless noted Q1 2022 Q1 2023 Change Net Sales $1,892 $2,137 +13% Gross Profit $379 $487 +28% Gross Profit Margin 20.0% 22.8% 280 bps Reported Operating Income $210 $291 +39% Reported Diluted EPS $1.92 $2.85 $0.93/share Adjusted Operating Income* $213 $2
Slide 11: Q1: Net sales bridge
Q1: Net sales bridge Strong growth demonstrating excellent price and customer mix management +13% $ in millions $424 $2,137 $1,892 $(63) $(116) Q1 2022 FX Volume Price Mix Q1 2023 11 Totals may not foot due to rounding
Slide 12: Q1: Net sales variance by region
Q1: Net sales variance by region Foreign Net Sales Volume Price Mix Exchange Change North America 0% -7% 23% 16% South America -5% -3% 15% 7% Asia-Pacific -5% -9% 16% 2% EMEA -15% -1% 37% 21% Ingredion -3% -6% 22% 13% 12 Totals may not foot due to rounding
Slide 13: Gross margin recovery due to revenue mix and cost management
Gross margin recovery due to revenue mix and cost management +280 bps 22.8% 20.0% Gross margin Q1 2022 Q1 2023 Corn cost benchmark: $6.16 $6.70 +9% increase U.S. average corn cost* Record gross profit dollars; Q1 2023 up 28% 13 *US futures corn strip per bushel – per CBOT average corn futures daily
Slide 14: Q1 regional performance: North America and South America
Q1 regional performance: North America and South America North America South America Net Sales Net Sales Absent FX +16% impacts $1,356 +12% $1,174 +7% $252 $269 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Vs PY Vs PY Op Income $ $156 $207 33% Op Income $ $38 $41 8% Op Inc Margin 13.3% 15.3% 200 bps Op Inc Margi
Slide 15: Q1 regional performance: Asia-Pacific and EMEA
Q1 regional performance: Asia-Pacific and EMEA Asia-Pacific EMEA Net Sales Absent FX Net Sales Absent FX impacts impacts +7% +36% 33% +2% +21% $272 $277 $235 $194 Q1 2022 Q1 2023 Q1 2022 Q1 2021 Vs PY Vs PY Op Income $ $22 $28 27% Op Income $ $31 $57 84% Op Inc Margin 8.1% 10.1% 200 bps Op Inc Margi
Slide 16: Q1 EPS bridge
Q1 EPS bridge Margin $ 1.42 Amounts are dollars/share Volume (0.36) 2022 Reported Diluted EPS $ 1.92 Foreign Exchange Rates (0.12) Impairment/Restructuring Costs 0.03 Other Income (0.06) Changes from Operations $ 0.88 Acquisition/Integraion Costs 0.01 Discrete tax item and other matters (0.01) 2022
Slide 17: Cash from operations and capital allocation
Cash from operations and capital allocation $ millions Net Income $194 Depreciation and amortization $54 Working capital $(302) Other $3 Cash from operations $(51) Capital allocation Capital expenditures, net $(75) To Shareholders Dividend payments to INGR Shareholders $(47) 17 Totals may not foot d
Slide 18: Full year 2023 outlook
Full year 2023 outlook Net Sales Up high single-digits to low double-digits 2023 Full Adjusted Operating Income* Up high double-digits year Financing costs $115 – $130 million Adjusted effective tax rate* 27.0% – 28.5% Cash from operations $550 – $650 million CAPEX Approximately $300 million Adjuste
Slide 19: 2023 Full year regional outlook and Q2 preview
2023 Full year regional outlook and Q2 preview • Expect net sales to be up 5% – 10% 2023 North America • Expect operating income to be up 20% – 25% vs. 2022 • Expect net sales to be flat to up 5% South America • Expect operating income to be flat to down mid-single digits • Expect net sales to be up
Slide 20: Great start to 2023 and raising FY outlook
Great start to 2023 and raising FY outlook • Strong operational execution for first quarter • Raising full-year profit guidance to reflect: • Effective customer and price mix management • Cost efficiency opportunities going forward • Customer inventories expected to normalize • Volumes expected to s
Slide 21: Q&A
Q&A DRIVINGROWTH Customer Co-Creation and Consumer Preferred Innovation ORSEO STARCH-BASED CLEAN AND SIMPLE PLANT-BASED SUGAR REDUCTION FOOD SYSTEMS TEXTURIZERS INGREDIENTS PROTEINS AND SPECIALTY SWEETENERS uoljeaiD onjeA = ——> s < o (a) o a ° s ore Food and industrial ingredrents Supply Chain and O
Slide 22: Upcoming investor activities
Upcoming investor activities New York non-deal roadshow May 16, 2023 BMO Farm-to-Market Conference May 17, 2023 22
Slide 23: Appendix
Appendix NN Ingredion Be what's next
Slide 24: Non-GAAP Information
Non-GAAP Information To supplement the consolidated financial results prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), we use non-GAAP historical financial measures, which exclude certain GAAP items such as acquisition and integration costs, restructuring and impai
Slide 25: Reconciliation of GAAP net income and diluted EPS to non-GAAP adjusted
Reconciliation of GAAP net income and diluted earnings per share (EPS) to non-GAAP adjusted net income and adjusted diluted EPS Totals may not foot due to rounding
Slide 26: Reconciliation of GAAP net income and diluted EPS (continued)
Reconciliation of GAAP net income and diluted earnings per share (EPS) to non-GAAP adjusted net income and adjusted diluted EPS (continued) Notes (i) During the first quarter of 2022, we recorded pre-tax acquisition and integration charges of $1 million for our acquisition and integration of KaTech,
Slide 27: Reconciliation of GAAP operating income to non-GAAP adjusted operating income
Reconciliation of GAAP operating income to non-GAAP adjusted operating income Three Months Ended March 31, (in millions, pre-tax) 2023 2022 Operating income $ 291 $ 210 Add back: Acquisition/integration costs (i) - 1 Restructuring/impairment charges (ii) - 2 Other matters (iii) 5 - Non-GAAP adjusted
Slide 28: Reconciliation of GAAP effective income tax rate to non-GAAP adjusted
Reconciliation of GAAP effective income tax rate to non-GAAP adjusted effective income tax rate Totals may not foot due to rounding
Slide 29: Reconciliation of GAAP effective income tax rate, cont'd
Reconciliation of GAAP effective income tax rate to non-GAAP adjusted effective income tax rate, cont’d For notes (i) through (iv), see notes (i) through (iv) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted EPS to Non-GAAP Adjusted Net Income attributable to I
Slide 30: Reconciliation of anticipated GAAP diluted EPS to non-GAAP adjusted
Reconciliation of anticipated GAAP diluted earnings per share to anticipated non-GAAP adjusted diluted earnings per share Expected EPS Range for Full-Year 2023 Low End of High End of Guidance Guidance GAAP EPS $ 8.85 $ 9.35 Add: Other matters (i) 0.06 0.06 Tax item - Mexico (ii) (0.21) (0.01) Adjust
Slide 31: Reconciliation of reported GAAP effective tax rate to anticipated non-GAAP
Reconciliation of reported GAAP effective tax rate to anticipated non-GAAP adjusted effective income tax rate Expected Effective Tax Rate Range for Full-Year 2023 Low End of High End of Guidance Guidance GAAP ETR 25.0% 28.0% Add: Other matters (i) 0.3% 0.3% Tax item - Mexico (ii) 1.7% 0.2 % Adjusted