Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — ESG Presentation (December 2024)
41 slides from Ingersoll Rand's sustainability presentation, Dec 17, 2024
Slide 1: Leading sustainably through execution
Leading sustainably through execution December 17, 2024 1
Slide 2: Agenda
Agenda 1. Welcome and Opening Remarks Matthew Fort VP, Investor Relations and Corporate FP&A 2. Sustainability highlights Vicente Reynal Chairman and CEO 3. Lead Sustainably | Grow and Operate Mary Betsch VP, Sustainability 4. Recurring Revenue Mike Medaska VP, Corporate Strategy 5. Q&A 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation addresses a multitude of topics to meet the requests and interests of the Company’s wide range of stakeholders. Due to the varied interests of these groups, this presentation contains voluntary disclosures and includes certain information that the Company
Slide 4: Sustainability highlights
Sustainability highlights Vicente Reynal
Slide 5: We are a leader in sustainability
We are a leader in sustainability 1 Extensively recognized for our sustainability performance while Making Life Better for our people Dow Jones Sustainability Indices Fortune Sector Leader 2024 Great Place to Work #1 Ingersoll Rand ranked as the top performer in the IEQ Machinery and Electrical Name
Slide 6: This is Ingersoll Rand today
This is Ingersoll Rand today... A leading global provider of mission-critical flow creation and life science and industrial solutions with a 165-year history ~$7.2B ~$2.0B ~28% ~$1.3B ~$40.9B 380% LTM Q3 2024 LTM Q3 2024 LTM Q3 2024 LTM Q3 2024 Market Cap2 Total Shareholder Return Revenue1 Adj. EBIT
Slide 7: Why we win: Product and technology leadership
Why we win: Product and technology leadership Broad flow creation and industrial product portfolio across air, gas, powder, and liquid handling applications Market position Air/gas compressors and Industrial vacuum pumps #1 • North America air air treatment Blowers and systems compressors • Oil-free
Slide 8: Why we win: Premium brands with incredible reputations
Why we win: Premium brands with incredible reputations Multi-brand strategy balances global strength of flagship Ingersoll Rand brand while preserving niche brands in focused applications and/or regions Key Brands 50+ added since Merger in February 20201 Industrial Technologies and Services Precisio
Slide 9: Our Economic Growth Engine is the set of actions and priorities to compound value
Our Economic Growth Engine is the set of actions and priorities to compound value Sustainability is a key theme which is embedded in every aspect of the Economic Growth Engine High Performance Premier Growth Megatrends Sustainability Digitalization Quality of Life Execution Process Compounder Owners
Slide 10: Supported by amazing employees with an ownership mindset
…supported by amazing employees with an ownership mindset Value of All Employee Equity Grants As part of our Ownership Works program, 100% of all new employees are eligible to receive an equity grant valued at 10% of their base salary ~$800M ~$1.1B2 2 after their one- year anniversary 1 ~370% increa
Slide 11: Achievements in sustainability leadership
Achievements in sustainability leadership 66% of Product Portfolio 59 Green Energy Locations 34% Absolute Water Reduction Feature sustainable attributes in 2023 17 manufacturing sites are powered by on-site solar panels At the end of 2023, surpassed water use reduction goal of and 42 locations have
Slide 12: Announcing new decarbonization and water goals
Announcing new decarbonization and water goals Aggressive new targets to support our customers and within our own operations Energy Goals1 Water Goals1 Target Years: 2030- 2050 Target Year: 2030 2030 60% GHG Emissions Reduction 17% Absolute Water Reduction (Scopes 1 and 2) Surpassed the goal 7 years
Slide 13: Lead Sustainably | Grow and Operate
Lead Sustainably | Grow and Operate Mary Betsch
Slide 14: Grow Sustainably | Develop Intrinsically Sustainable Products and Services
Grow Sustainably | Develop Intrinsically Sustainable Products and Services
Slide 15: Lead sustainably strategy
Lead sustainably strategy Grow Sustainably Accelerating our growth by developing products Enabling customer success across key high-growth, sustainable end and service offerings with sustainable attributes markets through our vertical market and demand generation strategy 2,600+ Ingersoll Rand emplo
Slide 16: Developing products and service offerings with sustainable attributes
Developing products and service offerings with sustainable attributes Encompasses products and services that have sustainable attributes and deliver measurable environmental and safety benefits to our customers To qualify as a product or service with sustainable attributes within our portfolio, our
Slide 17: Delivering superior product efficiency
Delivering superior product efficiency With the goal of reducing customer operating costs and scope 2 emissions Elmo Rietschle High-efficiency Blower CycloBlower H.E. Series and New E90-160 Oil-free Rotary Screw 125CL375 Product Line Compressor Compact design minimizes footprint, uses no Patented 3x
Slide 18: Ecoplant: Revolutionary energy savings through AI-driven system optimization
Ecoplant: Revolutionary energy savings through dynamic, AI-driven system optimization Combining the patented technology of an agile software startup with the global commercial reach of an industry leader System capacity use • Patented technology and proprietary algorithms in AI/Machine learning Syst
Slide 19: Delivering circularity to reduce and reuse resources
Delivering circularity to reduce and reuse resources Actively pursuing opportunities to promote circularity through recycling of our products and their components Estimated Recycled Content In Our Products1 Customer Success Stories Predictive vibration test and airend exchange program support custom
Slide 20: Designing safety into our products
Designing safety into our products Protecting our customers’ employees, operators, and technicians Air quality testing Butech high-pressure valves ILC Dover isolators Replaced methylene chloride with thermal desorption Operate at the highest levels of performance Protect operators from high-potency
Slide 21: Grow Sustainably | Enable Customers in High-growth, Sustainable Markets
Grow Sustainably | Enable Customers in High- growth, Sustainable Markets
Slide 22: Our products are ubiquitous, serving a broad range of sustainable end markets
Our products are ubiquitous, serving a broad range of sustainable end markets Our deep application-specific knowledge acquired over decades of experience and our long-standing relationships with key end-users and system/device builders are the basis of our competitive advantage in these markets Exam
Slide 23: We continue to shift the portfolio to high-growth, sustainable markets
We continue to shift the portfolio to high-growth, sustainable markets; with more runway ahead 2020 Estimated Revenue By End Market1 2024 Estimated Revenue By End Market1 General Manufacturing 28% Life Sciences 18% Specialty Vehicles 13% Clean Energy 12% Other 12% Food and Beverage 12% Upstream Ener
Slide 24: Life Sciences
Life Sciences Contributing to human health, care, comfort, and longevity • Our brands are trusted to • Our products play an produce life-saving therapies integral role in • Our products help to minimize pharmaceutical tablet contamination risk while production and coating, improving production effic
Slide 25: Clean energy
Clean energy Enabling the transition to clean, low-carbon, or zero-carbon energy • Our mixers enabled • Our compression production for an equipment supports the Indonesian customer in world's largest Direct Air the Sustainable Aviation Capture (DAC) plant, Fuel industry located in the Texas • Milton
Slide 26: Food and Beverage
Food and Beverage Enabling the safe and effective growth, processing, packaging, and delivery of food and beverages • Our pumps add liquid • Our pumps add swirls of ingredients like eggs into fudge and fruit to ice cream, pasta dough with precise frozen yogurt, and sorbet measurement • Positive disp
Slide 27: Water
Water ~25% of Ingersoll Rand’s product portfolio can be connected to water uses Wastewater Treatment Ingersoll Rand serves the global water and wastewater treatment markets with over 15 individual product and technology brands Customer Success Stories: Providing the City of Houston with safe water t
Slide 28: Operate Sustainably | Deliver Continuous Improvement in Our Operations
Operate Sustainably | Deliver Continuous Improvement in Our Operations
Slide 29: Operational, net zero and customer goal progress
Operational, net zero and customer goal progress (October 2024 vs. 2020 re-baseline) We remain on track to achieve our 2030 and 2050 operational goals 2030 OPERATIONAL GOALS1,2 Goal: Reduce Absolute Goal: 17% Water Use Goal: 30% Water-Stress Goal: >50% of In-Scope 43% Annual Greenhouse Gas Emissions
Slide 30: Our progress to world-class safety
Our progress to world-class safety As of November 2024 Total Recordable Injury Rate (TRIR) 0 0.5 1 1.5 2 2.5 2024 0.53 72% Better Than The Industrial Machinery 2023 0.69 Manufacturing Average 1.9 Industrial Machinery 2022 0.73 Manufacturing Average2 2021 0.74 2020 0.51 Target ≤0.6 (World Class)1 Los
Slide 31: GHG roadmap and examples of our sustainability progress
GHG roadmap and examples of our sustainability progress GHG Emission Reduction Roadmap Metric Tons Leading by Example 2030 Goal: 60% Scopes 1 and 2 reduction (from 2020 recalculated baseline) Our facility in Wujiang, China installed two heat pumps with much higher GreenX Efficiency Projects Expandin
Slide 32: Making significant progress by leveraging IRX
Making significant progress by leveraging IRX IRX Manages the Weekly KPIs and Progress Health and Safety Environment Our safety culture is paramount Our local site GreenX Teams are to eliminating and reducing risk responsible for achieving our in the workplace energy, water, and waste targets 16,000
Slide 33: Recurring Revenue
Recurring Revenue Mike Medaska
Slide 34: Recurring revenue from a lifetime relationship delivers higher sustainability impact
Recurring revenue1 from a lifetime relationship delivers higher sustainability impact We are committed to growing our recurring offering given its importance to our customers and its revenue and margin contribution to Ingersoll Rand Increased Ingersoll Rand-managed service ensures machine Sustainabi
Slide 35: PackageCARE and Ecoplant are a winning combination for sustainable markets
PackageCARE and Ecoplant are a winning combination for sustainable markets Demonstrated ability to improve customer operations, satisfaction, and energy efficiency $17.9M PackageCARE contract signed in May 2023, largest valued contract in U.S. history Customer Success Story: Food $3.3M Customer Succ
Slide 36: Extending the sustainability benefits of our products with new service offerings
Extending the sustainability benefits of our products with new service offerings Ensuring our most energy efficient products are maintained and optimized to deliver maximum customer value Commercial Traction + • Launched October 2023 • 10 new long-term RunCare RunEco Paper Machine Vacuum Blower Syst
Slide 37: Air quality testing enables employee safety and food/pharmaceutical integrity
Air quality testing enables employee safety and food/pharmaceutical integrity Validating the purity of air and gas in mission-critical applications across high-growth, sustainable markets • Founded in 1989, joining Ingersoll Rand in 2023 Manufacturing Air • State-of-the-art analysis of air and gas i
Slide 38: Appendix
A p p e n d i D4 am) Ingersoll Rand.
Slide 39: Supplemental footnote disclosures to slide 5
Supplemental footnote disclosures to slide 5 2 As of December 8, 2023, Ingersoll Rand scored 81 (out of 100) in the 2023 S&P Global Corporate Sustainability Assessment and ranked in the 1% percentile in the IEQ Machinery and Electrical Engineering industry globally. As of December 13, 2024, our comp
Slide 40: Reconciliation of Net Income to Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Income to Adjusted EBITDA and Adjusted Net Income and Cash Flows from Operating Activities to Free Cash Flow (Unaudited; in millions) For the Twelve (Unaudited; in millions) For the Twelve For the Three Month Period Ended Month Period Ended Month Period Ended December 31, 2023
Slide 41: Reconciliation of Net Income to Adjusted EBITDA and Free Cash Flow (annual)
Reconciliation of Net Income to Adjusted EBITDA and Adjusted Income from Continuing Operations, Net of Tax and Cash Flows from Operating Activities from Continuing Operations to Free Cash Flow (Unaudited; in millions) For the Twelve Month Period Ended December 31, (Unaudited; in millions) For the Tw