Slide 1: Third Quarter 2022 Earnings Presentation
THIRD QUARTER 2022 EARNINGS PRESENTATION November 3, 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 Quarter highlights and updates 2 Consolidated financial results 3 Segment performance 4 Guidance 5 Q&A 3
Slide 4: Quarter highlights and updates
QUARTER HIGHLIGHTS AND UPDATES Record quarter for sales, adjusted EBITDA and adjusted diluted EPS(1) driven by strong demand across all businesses Closed on the Ozark acquisition (October 3) Completed the addition of polyols production capacity for Engineered Polymers in DeRidder, Louisiana Earned t
Slide 5: Third Quarter (Q3) Consolidated Financial Performance
THIRD QUARTER (Q3) CONSOLIDATED FINANCIAL PERFORMANCE Q3 financials Performance highlights $ in millions except percentage and EPS Q3 Q3 vs PY Record sales up 27.9% reflecting price increases in all businesses, 2022 2021 ∆% particularly in Performance Chemicals, and improved automotive volumes $482.
Slide 6: Q3 2022 Financial Metrics and Highlights
Q3 2022 FINANCIAL METRICS AND HIGHLIGHTS Net Sales Free cash flow (1) $ in millions Q4 $ in millions Q4 Record sales up 27.9% vs. FCF of $64.0 million slightly 336 Q3 Q3 prior year lower than prior year due Q2 122 to increased capital 482 Sales into higher value end- 51 39 Q2 markets enables p
Slide 7: Performance Chemicals
PERFORMANCE CHEMICALS Q3 Q3 $ % $ IN MILLIONS VS. PRIOR VS. PRIOR 2022 2021 YEAR YEAR Performance highlights Net Sales 337.1 258.7 78.4 30.3% Engineered Polymers 69.5 52.9 16.6 31.4% Sales of $337.1 million up 30.3% due to price increases and stronger volumes in derivatized products Industrial Speci
Slide 8: Performance Materials
PERFORMANCE MATERIALS Q3 Q3 $ % $ IN MILLIONS VS. PRIOR VS. PRIOR 2022 2021 YEAR YEAR Performance highlights Net Sales 144.9 118.1 26.8 22.7% Sales of $144.9 million up 22.7% on improved global auto production Segment EBITDA 61.2 56.4 4.8 8.5% and price increases, primarily in process purification S
Slide 9: Raising 2022 Guidance
RAISING 2022 GUIDANCE FY Guidance Headwinds: Financial FY Guidance High inflationary input costs remain, especially on metric raw materials and energy Revenue $1,650 - $1,700 Recession? Adj. EBITDA (1) $460 - $475 Capital expenditures $130 – $150 Tailwinds: Free cash flow (1) >$160 Continu
Slide 10: Investor Day Spring 2023
INVESTOR DAY SPRING 2023 10
Slide 11: For More Information
FOR MORE INFORMATION Investors John Nypaver, Jr. (843) 740 - 2002 Media Caroline Monahan (843) 740 - 2068 Thank you for your interest in Ingevity. 11
Slide 12: Appendix
APPENDIX 12
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 September 30, Nine Months Ended September 30, In millions, except per data (unaudited) 2022 2021
Slide 15: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) Three Months Ended September 30, Nine Months Ended September 30, In millions, except percentages (unaudited) 2022 2021 2022 2021 Net income (loss) (GAAP) $ 75.4 $ (4.2) $ 196.0 $ 88.8 Provision (benefit) for income taxes 20.4 (4.8) 53
Slide 16: Reconciliation of Cash Flow from Operations to Free Cash Flow
Reconciliation of Cash Flow from Operations (GAAP) to Free Cash Flow (Non-GAAP) Three Months Ended September 30, Nine Months Ended September 30, In millions (unaudited) 2022 2021 2022 2021 Cash Flow from Operations $ 100.1 $ 100.1 $ 214.9 $ 217.0 Less: Capital Expenditures 36.1 25.5 93.3 66.4 Free C
Slide 17: Reconciliation of Gross Profit to Adjusted Gross Profit and SG&A
Reconciliation of Gross Profit (GAAP) to Adjusted Gross Profit (Non-GAAP) and SGA (GAAP) to Total SG&A excl. D&A (Non-GAAP) Three Months Ended September 30, Nine Months Ended September 30, In millions, except percentages (unaudited) 2022 2021 2022 2021 Gross Profit (GAAP) $ 176.3 $ 141.8 $ 464.7 $ 4
Slide 18: Reconciliation of Other (income) expense, net
Reconciliation of Other (income) expense, net (GAAP) to Adjusted Other (income) expense, net (Non-GAAP) Three Months Ended September 30, Nine Months Ended September 30, In millions, except percentages (unaudited) 2022 2021 2022 2021 Other (income) expense, net (GAAP) 2.0 84.6 (1.0) 81.6 Less: Litiga
Slide 19: Calculation of Net Debt to Adjusted EBITDA Ratio
Calculation of Net Debt to Adjusted EBITDA Ratio (Non-GAAP) In millions, except ratios (unaudited) September 30, 2022 Notes payable and current maturities of long-term debt $ 0.9 Long-term debt including finance lease obligations 1,153.2 Debt issuance costs 6.7 Total Debt $ 1,160.8 Less: Cash and ca
Slide 20: Calculation of Historical Net Debt Ratio
Calculation of Historical Net Debt Ratio (Non-GAAP) December 31, 2021 2022 In millions, except ratios (unaudited) 2018 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Net Debt (1) $ 610.2 $ 1,121.0 $ 974.8 $ 982.6 $ 981.8 $ 940.2 $ 928.7 $ 976.1 $ 975.4 Adjusted EBITDA(2) 320.5 396.9 397.9 411.1 461.6 453.5 422.2 435.8