Slide 1: First Quarter 2022 Earnings Presentation
FIRST QUARTER 2022 EARNINGS PRESENTATION May 5, 2022
Slide 2: Use of non-GAAP financial measures and forward-looking statements
Use of non-GAAP financial measures: This presentation includes certain non‐GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non‐GAAP financial measures to GAAP financial measures are provided within the Appendix to this presentation. In
Slide 3: Agenda
AGENDA 1 Strategic update 2 Consolidated financial results 3 Segment performance 4 Guidance 5 Q&A 3
Slide 4: We are purifying, protecting and enhancing everyday life
WE ARE PURIFYING, PROTECTING AND ENHANCING EVERYDAY LIFE 4
Slide 5: Strategic Update
STRATEGIC UPDATE Record sales and adjusted EBITDA (1); Capturing value for our products in their end-uses Crossett, Ark. Driving long-term organic growth through innovation Leveraging sustainability as a competitive advantage Maintaining focus on operational excellence despite economic and geopoliti
Slide 6: First Quarter (Q1) Consolidated Financial Performance
FIRST QUARTER (Q1) CONSOLIDATED FINANCIAL PERFORMANCE Q1 financials Performance highlights vs PY Record sales up nearly 20% reflecting strong end- $ in millions except percentage and EPS Q1 Q1 2022 2021 ∆% market demand that enabled price increases across the company to offset inflation Net sales $3
Slide 7: Q1 2022 Financial Metrics and Highlights
Q1 2022 FINANCIAL METRICS AND HIGHLIGHTS Net Sales Free cash flow (1) $ in millions Q4 ▪ Record sales up $ in millions Q4 ▪ FCF slightly negative, 19.5% vs. Q1 2021 336 Q3 Q3 reflecting more ▪ Strong end-market typical pre-Covid 122 Q2 demand enabled Q2 pattern 51 39 377 price increases to Q1 48 Q1
Slide 8: Performance Chemicals
PERFORMANCE CHEMICALS Q1 Q1 $ % $ IN MILLIONS VS. PRIOR VS. PRIOR 2022 2021 YEAR YEAR Performance highlights Net Sales 234.4 179.6 54.8 30.5% Sales of $234 million up over 30% Engineered Polymers 61.8 46.1 15.7 34.1% ▪ ENGINEERED POLYMERS: Sales up 34% due primarily to Industrial Specialties 144.7 1
Slide 9: Performance Materials
PERFORMANCE MATERIALS Q1 Q1 $ % $ IN MILLIONS VS. PRIOR VS. PRIOR 2022 2021 YEAR YEAR Performance highlights Net Sales 148.4 140.7 7.7 5.5% Sales of $148 million up over 5%; segment’s second-best revenue quarter Segment EBITDA 77.9 73.7 4.2 5.7% ▪ Demand for automotive carbon and ‘honeycomb’ Segment
Slide 10: 2022 Revised Guidance and Outlook
2022 REVISED GUIDANCE AND OUTLOOK FY Guidance Headwinds Financial Prior FY Revised FY ▪ Persistent supply chain issues metric Guidance Guidance ▪ Inflationary pressure on all costs Revenue $1,525 - $1,600 $1,525 - $1,650 ▪ Ongoing logistics challenges ▪ Geopolitical uncertainty Adj. EBITDA (1) $430
Slide 11: For More Information
FOR MORE INFORMATION Investors John Nypaver (843) 740 - 2002 Media Caroline Monahan (843) 740 - 2068 Thank you for your interest in Ingevity. 11
Slide 12: Appendix
Appendix ™ingevity
Slide 13: Definitions of 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 accordance with GAAP. These finan
Slide 14: Reconciliation of Net Income and Diluted EPS to Adjusted Earnings
Reconciliation of Net Income (Loss) (GAAP) and Diluted Earnings (Loss) Per Share (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) and Diluted Adjusted Earnings (Loss) Per Share (Non-GAAP) Three Months Ended March 31, In millions, except per data (unaudited) 2022 2021 Net income (loss) (GAAP) $ 60.8 $ 4
Slide 15: Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) Three Months Ended March 31, In millions, except percentages (unaudited) 2022 2021 Net income (loss) (GAAP) $ 60.8 $ 48.7 Provision (benefit) for income taxes 16.8 13.1 Interest expense, net 10.7 12.4 Depreciation and amortization 27.
Slide 16: Reconciliation of Provision for Income Taxes and Core SG&A
Reconciliation of Provision for Income Taxes (GAAP) to Provision for Income Taxes on Adjusted Earnings (Non-GAAP) Three Months Ended March 31, In millions, except percentages (unaudited) 2022 2021 Adjusted EBITDA (Non-GAAP) $ 119.0 $ 105.4 Less: Depreciation and amortization 27.1 27.0 Interest expen
Slide 17: Calculation of Free Cash Flow (Non-GAAP)
Calculation of Free Cash Flow (Non-GAAP) Three Months Ended March 31, In millions (unaudited) 2022 2021 Cash Flow from Operations $ 24.3 $ 51.1 Less: Capital Expenditures 27.6 17.0 Free Cash Flow $ (3.3) $ 34.1 2018 2019 In millions (unaudited) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cash Flow from Operations $ 9.7
Slide 18: Calculation of Net Debt Ratio (Non-GAAP)
Calculation of Net Debt Ratio (Non-GAAP) In millions, except ratios (unaudited) March 31, 2022 Notes payable and current maturities of long-term debt $ 319.6 Long-term debt including finance lease obligations 945.6 Debt issuance costs 10.4 Total Debt $ 1,275.6 Less: Cash and cash equivalents (1) 222
Slide 19: Calculation of Historical Net Debt Ratio (Non-GAAP)
Calculation of Historical Net Debt Ratio (Non-GAAP) December 31, 2021 In millions, except ratios (unaudited) 2018 2019 2020 Q1 Q2 Q3 Q4 Net Debt (1) $ 610.2 $ 1,121.0 $ 974.8 $ 982.6 $ 981.8 $ 940.2 $ 928.7 Adjusted EBITDA(2) 320.5 396.9 397.9 411.1 461.6 453.5 422.2 Pine Chemical Pro Forma (3) 4.8