Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — ESG Presentation (September 2022)
36 slides from Ingersoll Rand's sustainability presentation, Sep 22, 2022
Slide 1: Leading Sustainably
Leading Sustainably Update for investors and analysts September 22, 2022 1
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: Team on today’s call / Agenda
Team on today’s call Agenda Vicente Reynal Mary Betsch Lead Sustainably Chairman, President and CEO VP, Sustainability 01 Vicente Reynal Vik Kini Matthew Fort Grow Sustainably SVP, CFO VP, Investor Relations and Global Financial 02 Mike Medaska Planning & Analysis Andy Schiesl Mike Medaska Operate S
Slide 4: Key messages
Key messages Sustainability is fully We have renamed our strategic imperative Lead Sustainably to include both the external growth embedded in every opportunities (Grow Sustainably) and the internal improvements (Operate Sustainably) associated with element of our economic sustainability model and d
Slide 5: Ingersoll Rand today
Ingersoll Rand (NYSE: IR) today ~$5.8B ~$1.4B Mid-20s $20.5B ~16,300 65 FY 2022E Revenue1 FY 2022E Adj. EBITDA1 FY 2022E Adj. EBITDA Margin1 Market Cap2 Employees2 Key Manufacturing Sites2 Revenue Composition3 Region Segment Type Americas 43% ITS 81% Equipment 64% EMEIA 34% PST 19% Aftermarket 36% A
Slide 6: CEO quote on sustainability
Lead Sustainably 01 Vicente Reynal “Doing good for the environment is also good for our company. Reducing our energy, water and material usage and ultimately our environmental footprint, and thereby increasing our operating efficiency, provides real benefits to our bottom-line performance. Grow Sust
Slide 7: Introducing Lead Sustainably
Introducing Lead Sustainably: solidifying the role of sustainability in both our growth and operations 2020 - 2021 Today • Embedded sustainability in the Introducing Lead Sustainably as Aligns and supports each aspect of our strategic imperatives for the newly combined company our updated strategic
Slide 8: Lead Sustainably is not an add-on; it influences every element of our economic engine
Lead Sustainably is not an add-on; it influences decisions throughout every element of our economic engine Digitization and IIoT Demand Generation M&A Aftermarket Enabling more efficient Campaigns are already Targets and technology Programs promoting service execution and deployed to users within pa
Slide 9: We are investing in sustainability efforts and disclosures
We are investing in sustainability efforts and disclosures; external recognition is improving 2021 Sustainability Report Investing to build capability • Our most comprehensive effort ever • Built a new, agile team 100% dedicated to sustainability efforts • Published June 30, 2022 • Committed 1,100+
Slide 10: Social: Ownership Culture
Social: attracting, retaining and inspiring industry-leading talent through our Ownership Culture Employee Engagement Employee ownership: the leading edge of social • Most recent overall score of 80 in • Our employees are the most critical element of our business and Making Life Better for them begi
Slide 11: Governance: award-winning oversight
Governance: award-winning oversight of the operationalization of our sustainability work Board of Directors - Sustainability Committee Operationalizing sustainability Award-winning program • Established committee reflects the overall diversity • We operationalize sustainability through our IRX engin
Slide 12: Our focus and preparation are enabling us to address current trends
Our focus and preparation are enabling us to address current trends Trend Impact Opportunity Government support for • Substantial legislative actions across the Western • Inflation Reduction Act provides incentives that we expect will create market 1 world, including the recent Inflation Reduction A
Slide 13: Lead Sustainably
Lead Sustainably 01 Vicente Reynal Grow Sustainably 02 Mike Medaska Operate Sustainably 03 Mary Betsch Questions and Answers 04 All 13
Slide 14: Our Grow Sustainably strategy has two clear growth paths
Our Grow Sustainably strategy has two clear and compelling growth paths A Intrinsically Sustainable Products and Services Horizontal strategy to meet universal customer needs for sustainability Why we are uniquely positioned to succeed: • Innovative market-leading portfolio of air and liquid flow cr
Slide 15: Grow Sustainably: Intrinsically sustainable products and services
Grow Sustainably A Intrinsically sustainable products and services Efficiency Circularity Safety
Slide 16: Energy efficiency is the biggest unmet need of our customers
Energy efficiency is the single biggest unmet need of our customers and a significant growth opportunity for IR Compressed air systems are ubiquitous and vital to the economy Huge opportunity for IR to help customers and capture value • Compressed air is referred to as the “4th utility” - electricit
Slide 17: Delivering superior product efficiency
Delivering superior product efficiency to reduce customer operating costs and scope 1 and 2 emissions Across our air, gas and liquid flow platforms, Innovative products deliver environmental and bottom-line impact we have many opportunities to provide solutions to our customers that reduce their emi
Slide 18: Compressed air system efficiency represents a major opportunity for growth
Compressed air system efficiency represents a major opportunity for growth >$50B leading global consumer products company Customer situation • Personal care products manufacturing site in the UK was operating four competitive variable speed drive rotary compressors to provide air for process and pac
Slide 19: Delivering circularity to reduce and reuse resources
Delivering circularity to reduce and reuse resources Water conservation Remanufacturing services IR products impact customer water usage in four primary ways: The opportunity IR reduces the use of new raw materials (metals, plastics, components) used in the Product uses Product transfers Product sup
Slide 20: Designing safety into our products
Protecting our customers’ employees, operators and technicians by designing safety into our products Customer • Ensure the health and safety of all associates (technicians, operators, engineers, assemblers and other personnel) who install, operate, maintain, and interact with our Needs equipment at
Slide 21: Grow Sustainably: High-growth, sustainable markets
Grow Sustainably B High-growth, sustainable markets Food Life science Water Clean energy 21
Slide 22: Food: enabling safe and effective growth, processing and delivery
Food: enabling the safe and effective growth, processing, packaging and delivery of food and beverages IR products1 Customer success stories Maximus Precision Agriculture Greenhouse Management • Dosing pumps for plant nutrient delivery Controller and • Control systems for farm management Software •
Slide 23: Life science: human health, care, comfort and longevity
Life science: contributing to human health, care, comfort and longevity IR products1 Customer success stories Pharmaceutical • Oil-free compressors for pharmaceutical production sites • Blower and vacuum pumps for pharmaceutical manufacturing Zinsser Analytic automated liquid • Hygienic and quick-kn
Slide 24: Water: transport, treatment and protection of water resources
Water: facilitating the transport, treatment and protection of water and wastewater resources IR products and markets1 Customer success story IR products • Pumps for pH regulation, softening and disinfection of drinking water • Pumps to dose chemicals to treat/disinfect wastewater • Pumps to dose ch
Slide 25: Clean energy: enabling the energy transition
Clean energy: enabling the transition to clean, low-carbon or zero-carbon energy IR products1 Customer success stories Biogas • Renewable natural gas (RNG) capture and compression systems • Waste grinding and conveyance pumps Robuschi ROBOX RSW Oil-Free Hydrogen • Clean technology innovator based in
Slide 26: Lead Sustainably
Lead Sustainably 01 Vicente Reynal Grow Sustainably 02 Mike Medaska Operate Sustainably 03 Mary Betsch Questions and Answers 04 All 26
Slide 27: Operate Sustainably makes life better for our stakeholders
Operate Sustainably makes life better for our stakeholders and strengthens our business Our deep commitment to Operating Sustainably delivers: • Bottom-line performance through efficient operations and cost savings • Risk mitigation to ensure the resilience of our business • A sense of purpose and i
Slide 28: Delivering on our ambitious goals
Delivering on our ambitious goals January to July 2022 vs. January to July 2020 (Baseline Year)1 2030 Operations Goals 2050 Operations Goals Goal: Reduce Absolute Annual Greenhouse Gas Emissions 60% Goal: Net Zero Absolute 2022 Progress: Reduction of 8,711 metric tons (15.6%), Absolute representing
Slide 29: IRX is how we operationalize sustainability
IRX is how we operationalize sustainability We leverage IRX in how we operate sustainably to reach our We are building capability in our global teams and developing tools, environmental goals resources, and improving data management • Company-wide weekly IMPACT Daily Management (IDM) • Developed Gre
Slide 30: Scope 1 and 2 GHG roadmap
Scope 1 and 2 GHG roadmap to meaningful climate action GHG Emission Reduction Projects 2030 Goal: 60% Reduction (from 2020 Baseline) Refrigerant Reduction Project LED Lighting and Smart Forklift Sensors Hybrid and Baseline + Electrification Electric Fleet Anticipated Growth A Retail Renewable B Elec
Slide 31: Measuring and Reducing Scope 3 GHG
Measuring and Reducing Scope 3 GHG to Deliver on our Net Zero Commitment Objective Approach From Measurement to Action - Case study • Scope 3 emissions are the largest and hardest to • We tackled our largest and most difficult category Our Milton Roy Shanghai team is working with our address compone
Slide 32: Roadmap to our 17% water reduction goal
Roadmap to our 17% water reduction goal Water Reduction Projects 2030 Goal: 17% Reduction (from 2020 Baseline) Closed Loop – Green Excellence Sedalia Program Sheboygan Water Efficiency Additional Closed Baseline + A Loop Systems Sheboygan Water Anticipated Reuse Growth B 159,190,000 Gallons Goal 132
Slide 33: Well ahead of plan on zero waste to landfill goals
Well ahead of plan on zero waste to landfill goals • Number of Ingersoll Rand production sites that have achieved We are also committed to using and reusing natural resources in the 59 Zero Waste to Landfill as of August 2022 • Achieved 71% of our 2030 goal (50% of sites) most sustainable way possib
Slide 34: Continuing to deliver on world-class safety results
Continuing to deliver on world-class safety results Our Total Recordable Injury Rate (TRIR) continues to improve - we are close to World Class and significantly better than the Industrial Machinery Manufacturing Average1 Safety ranks as the #1 employee engagement score overall 100 Days of Safety cam
Slide 35: Key messages
Key messages Sustainability is fully We have renamed our strategic imperative Lead Sustainably to include both the external growth embedded in every opportunities (Grow Sustainably) and the internal improvements (Operate Sustainably) associated with element of our economic sustainability model and d
Slide 36: Lead Sustainably / Questions and Answers
Lead Sustainably 01 Vicente Reynal Grow Sustainably 02 Mike Medaska Operate Sustainably 03 Mary Betsch Questions and Answers 04 All Ingersoll Rand Pride Alliance Art Contest Winning entry by IR employee Teodora Ica NASH, Nuremberg, Germany 36