Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — Q1 2022 Earnings Presentation
23 slides from Ingersoll Rand's earnings presentation, May 5, 2022
Slide 1: Ingersoll Rand Q1 2022 Earnings Presentation
Ingersoll Rand Q1 2022 Earnings Presentation May 5, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation by Ingersoll Rand Inc. (the “Company” or “Ingersoll Rand”) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related the Company‘s expectations regarding the performance
Slide 3: A Premier Industrial Company with Iconic Brands and Market-Leading Positions
A Premier Industrial Company with Iconic Brands and Market-Leading Positions Contributing to Customers’ Sustainability Efforts 1 Energy efficiency and water conservation create meaningful economic value and emissions reduction Continued Strong Operational Performance in Q1 2 Executed well amidst ong
Slide 4: We Make Life Better Every Day Through our Strategic Imperatives
We Make Life Better Every Day Through our Strategic Imperatives Deploy Talent 1 Grow Sustainably Leverage sustainability megatrends into growth – 100% of new product innovation designed with energy efficiency improvements Accelerate Growth Helping customers Satisfy customer demand Selling into high
Slide 5: Our Products Enable Customers to Materially Reduce Their Energy and Water Usage
Our Products Enable Customers to Materially Reduce Their Energy and Water Usage Customer Challenge IR Value Proposition Energy Usage IR 2030 Goal Customer Sustainability Reports* Customers identify air Provide air compressors and Minimum 15% reduction in GHG “We are developing a global inventory of
Slide 6: Substantial Opportunity for Customer Base to Upgrade Compressor Efficiency
Substantial Opportunity for Customer Base to Upgrade Compressor Efficiency at Attractive Paybacks Efficiency Customer Compressor Efficiency Payback Matters Audits Installed Base Uplift Period ~100% $100M ~2/3 15% <2 Years Customers who take energy 2021 orders from upgrades Compressors in installed b
Slide 7: Leveraging IRX to Achieve Our Operate Sustainably ESG Goals
Leveraging IRX to Achieve Our “Operate Sustainably” ESG Goals Rating Agency 2020/21 Current ESG Rating Agency Impact Daily Management (IRX) Goals BBB A • Ingersoll Rand will be recognized as a top-quartile ESG industrial company as defined by targeted rating agencies 30.1 23.5 High Risk Medium Risk
Slide 8: IRX is our Competitive Differentiator – Q1 2022 Highlights
IRX is our Competitive Differentiator – Q1 2022 Highlights¹ Cost Synergy • On track to deliver $300M commitment ($50M to be realized in 2022) Capture² Strong momentum • Orders: Up 25% YoY; strong organic growth across both segments (ITS Orders and +25% & PST +6%) Revenue • Revenue: Up 18% YoY; stron
Slide 9: Q1 2022 Financial Performance vs. Q1 2021
Q1 2022 Financial Performance vs. Q1 2021 Financial Information ($M, excl. EPS) Orders Revenue Adj. EBITDA & Margin¹ Adj. Diluted EPS² Up 25%; Up 21% Organic Up 18%; Up 14% Organic Adj. EBITDA Up 24% Up $0.10; Up 26% Adj. EBITDA Margin Expansion ITS 70 bps PST (260) bps Total IR 110 bps • PST Adj. E
Slide 10: Q1 2022 Financial Performance
Q1 2022 Financial Performance ($M, excl. Leverage) Free Cash Flow Leverage1 Cash Flows from Operations less Capex (Net Debt / LTM Adjusted EBITDA) Liquidity & Leverage Total available liquidity of $3.1B including: ‒ Cash and Cash 2.6x Equivalents: $2.0B ($18) ‒ Available Revolving Credit 1.9x Faci
Slide 11: Industrial Technologies and Services Q1 2022 Highlights
Industrial Technologies and Services Q1 2022 Highlights Q1 2022 vs. Q1 2021 ($M) Q1 2022 vs. Q1 2021 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆ Revenue $1,039.6 $913.8 13.8% 15.9% Orders Growth 25.1% (2.5)% 1.4% 24.0% Adj. EBITDA $247.4 $211.5 17.0% — Revenu
Slide 12: Precision and Science Technologies Q1 2022 Highlights
Precision and Science Technologies Q1 2022 Highlights Q1 2022 vs. Q1 2021 ($M) Q1 2022 vs. Q1 2021 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆ Revenue $297.4 $215.7 37.9% 41.2% Orders Growth 6.4% (3.0)% 27.2% 30.6% Adj. EBITDA $85.1 $67.2 26.6% — Revenue Grow
Slide 13: Raising 2022 Guidance
Raising 2022 Guidance Prior (as of 2/23/22) Revised (as of 5/4/22) FY 2022 Assumptions Revenue Adjusted Revenue Adjusted • Total Revenue Growth Phasing: Growth1 EBITDA Growth1 EBITDA • H1: 12-14% • H2: 9-11% Total 11-13% $1,375M - $1,415M 11-13% $1,385M - $1,425M • ~35% incremental margin expected i
Slide 14: Key Takeaways – Investing with Ingersoll Rand
Key Takeaways – Investing with Ingersoll Rand Record Q1 performance with momentum into Q2; remaining agile and continuing to 1 deliver while adjusting to dynamic market conditions 2 Continuing to differentiate Ingersoll Rand as an investment: • Investing for growth • Increasing the quality of the po
Slide 15: Appendix
am) Ingersoll Rand Appendix
Slide 16: Q1 2022 Financial Performance – As Reported
Q1 2022 Financial Performance – As Reported ($M, excl. EPS) Net Income1 Diluted EPS2 Up 215% Up $0.46 1 Net Income as reported defined as Net Income (Loss) Attributable to Ingersoll Rand Inc. 2 Diluted EPS defined as (Net Income (Loss) Attributable to Ingersoll Rand Inc.) / (Diluted Average Shares O
Slide 17: Adjusted Financial Information
Adjusted Financial Information (Unaudited; in millions) For the Three Month Period Ended March 31, 2022 2021 Revenues $ 1,337.0 $ 1,129.5 Adjusted EBITDA $ 303.6 $ 244.0 Adjusted EBITDA Margin 22.7 % 21.6 % 17
Slide 18: Reconciliation of Net Income (Loss) to Adjusted Net Income
Reconciliation of Net Income (Loss) to Adjusted Net Income (Unaudited; in millions) For the Three Month Period Ended March 31, 2022 2021 Net Income (Loss) $ 104.5 $ (90.1) Less: Loss from Discontinued Operations (1.8) (177.8) Less: Income Tax Benefit (Provision) from Discontinued Operations 0.4 (2.4
Slide 19: Reconciliation of Diluted Net Income (Loss) Per Share to Adjusted Diluted Net Income Per Share
Reconciliation of Diluted Net Income (Loss) Per Share to Adjusted Diluted Net Income Per Share from Continuing Operations (Unaudited; in millions, except per share amounts) For the Three Month Period Ended March 31, 2022 2021 Diluted Net Income (Loss) Per Share (As Reported)1 $ 0.25 $ (0.21) Less: D
Slide 20: Reconciliation of Net Income (Loss) to Adjusted Earnings per Share
Reconciliation of Net Income (Loss) to Adjusted Earnings per Share (Unaudited; in millions, except per share amounts) For the Three Month Period Ended March 31, 2022 2021 Net Income (Loss) $ 104.5 $ (90.1) Less: Loss from Discontinued Operations (1.8) (177.8) Less: Income Tax Benefit (Provision) fro
Slide 21: Reconciliation of Net Income (Loss) to Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted Income from Continuing Operations, Net of Tax and Cash Flow from Operating Activities to Free Cash Flow For the Three Month Period (Unaudited; in millions) Ended March 31, 2022 2021 Net Income (Loss) $ 104.5 $ (90.1) Less: Loss from
Slide 22: Reconciliation of Segment Adjusted EBITDA to Net Income (Loss)
Reconciliation of Segment Adjusted EBITDA to Net Income (Loss) (Unaudited; in millions) For the Three Month Period Ended March 31, 2022 2021 Orders Industrial Technologies and Services $ 1,292.8 $ 1,042.4 Precision and Science Technologies 337.1 258.2 Total Orders $ 1,629.9 $ 1,300.6 Revenue Industr
Slide 23: Orders and Revenue Growth by Segment
Orders and Revenue Growth by Segment (Unaudited) For the Three Month Period Ended March 31, 2022 Orders Revenue Ingersoll Rand Organic growth 21.4% 13.9% Impact of foreign currency (2.6%) (2.3%) Impact of acquisitions 6.5% 6.8% Total orders and revenue growth 25.3% 18.4% Industrial Technologies & Se