Slide 1: Third Quarter 2023 Earnings Call
Third Quarter 2023 Earnings Call Jim Zallie President and CEO James Gray Executive Vice President and CFO
Slide 2: Non-GAAP Financial Measures and Forward-Looking Statements
Non-GAAP Financial Measures This presentation provides information about adjusted diluted earnings per share (“adjusted EPS”), adjusted operating income, adjusted effective income tax rate, and other financial measures (collectively, the “non-GAAP financial measures”) which are not measurements of f
Slide 3: CEO Perspective
Jim Zallie President and CEO Third Quarter 2023 Earnings Call CEO Perspective 3
Slide 4: Continued strength in net sales and operating income growth
Continued strength in net sales and operating income growth Q3 Net Sales Q3 Adjusted Op Income +1% +15% +0% +14% Absent FX impacts Absent FX impacts 4
Slide 5: Execution against our strategic pillars
Execution against our strategic pillars Specialties Growth Commercial Excellence Cost Competitiveness through Operational Excellence • Global specialty net sales grew • Several key multi-year • Balancing production with 6% YTD vs prior year customer contracts renewed, customer demand to manage • Spe
Slide 6: Sequential quarterly volume improvement
Sequential quarterly volume improvement Supply chain 110% pressures Indexed Against 2019 Quarterly Average of Shipped Volume* Q2 peak Q4 Sequential 105% Q1 Q3 improvement Q3 by month in Q3 Q4 July-Sept. Q2 Ukraine Q4 conflict 100% Q3 Q1 Q3 Q1 Q1 Supply chain 95% Q2 pressures easing Delta Variant and
Slide 7: Diversity across our markets and product portfolio
Diversity across our markets and product portfolio Well-balanced in a changing market environment Expanding Specialties Upgrading the Core Starch Based Sugar Reduction & Food Systems Glucose Packaging Brewing Texturizers Specialty Sweeteners • Growth in texture solutions • Mexico’s volume growth dri
Slide 8: Financial Update
James Gray Executive Vice President and CFO Third Quarter 2023 Earnings Call Financial Update 8
Slide 9: Q3 highlights: Income statement
Q3 highlights: Income statement $ in millions, unless noted Q3 2022 Q3 2023 Change Net Sales $2,023 $2,033 +1% Gross Profit $374 $421 +13% Gross Profit Margin 18.5% 20.7% 220 bps Reported Operating Income $182 $213 +17% Reported Diluted EPS $1.59 $2.36 $0.77/share Adjusted Operating Income* $191 $21
Slide 10: Q3: Net sales bridge
Q3: Net sales bridge $ in millions 1% $2,023 $10 $159 $2,033 $(159) Q3 2022 FX Volume Price Mix Q3 2023 10 Totals may not foot due to rounding
Slide 11: Q3: Net sales variance by region
Q3: Net sales variance by region Foreign Net Sales Volume Price Mix Exchange Change North America 0% -9% 12% 3% South America 7% -5% -10% -8% Asia-Pacific 0% -4% 2% -2% EMEA -4% -13% 18% 1% Ingredion 1% -8% 8% 1% 11 Totals may not foot due to rounding
Slide 12: Continued gross margin strength due to price and customer mix
Continued gross margin strength due to price and customer mix, as well as productivity initiatives +220 bps 20.7% Gross margin 18.5% • Pricing actions offsetting volume headwinds • Moderating input cost inflation along with productivity initiatives also supporting margins • COGS per ton inflation sl
Slide 13: Q3 regional performance: North America and South America
Q3 regional performance: North America and South America North America South America Net Sales Net Sales Absent FX +3% impacts $1,300 -15% $1,262 -8% $293 $269 Q3 2022 Q3 2023 Q3 2022 Q3 2023 vs PY vs PY Op Income $ $126 $171 36% Op Income $ $48 $32 -33% Op Inc Margin 10.0% 13.2% 320 bps Op Inc Marg
Slide 14: Q3 regional performance: Asia-Pacific and EMEA
Q3 regional performance: Asia-Pacific and EMEA Asia-Pacific EMEA Net Sales Absent FX Net Sales Absent FX impacts impacts -2% +5% 33% -2% $278 +1% $272 $190 $192 Q3 2022 Q3 2023 Q3 2022 Q3 2023 vs PY vs PY Op Income $ $27 $33 22% Op Income $ $30 $32 7% Op Inc Margin 9.7% 12.1% 240 bps Op Inc Margin 1
Slide 15: Q3: EPS bridge
Q3: EPS bridge Amounts are dollars/share Margin $ 0.66 Volume (0.36) 2022 Reported Diluted EPS $ 1.59 Foreign Exchange Rates 0.02 Restructuring/Impairment Costs 0.00 Other Income (0.03) Acquisition/Integration Costs 0.00 Changes from Operations $ 0.29 Tax and other matters 0.14 2022 Adjusted Diluted
Slide 16: YTD highlights: Income statement
YTD highlights: Income statement $ in millions, unless noted YTD 2022 YTD 2023 Change Net Sales $5,959 $6,239 +5% Gross Profit $1,143 $1,349 +18% Gross Profit Margin 19.2% 21.6% 240 bps Reported Operating Income $605 $755 +25% Reported Diluted EPS $5.63 $7.63 $2.00/share Adjusted Operating Income* $
Slide 17: YTD: EPS bridge
YTD: EPS bridge Amounts are dollars/share Margin $ 2.84 Volume (0.94) 2022 Reported Diluted EPS $ 5.63 Foreign Exchange Rates (0.19) Restructuring/Impairment Costs 0.05 Other Income (0.15) Acquisition/Integration Costs 0.01 Changes from Operations $ 1.56 Tax and other matters 0.11 2022 Adjusted Dilu
Slide 18: YTD: Cash from operations and capital allocation
YTD: Cash from operations and capital allocation $ millions Net Income $518 Depreciation and amortization $165 Working capital $(118) Other $82 Cash from operations $647 Capital allocation Capital expenditures, net $(231) To Shareholders Dividend payments to INGR Shareholders $(143) Repurchases of c
Slide 19: Full year 2023 outlook
Full year 2023 outlook 2023 Net Sales Up mid-single-digits Full year Adjusted Operating Income* Up high double-digits Financing costs $115 – $130 million Adjusted effective tax rate* 25.0% – 26.0% Adjusted EPS* $9.05 to $9.45 Diluted weighted avg. shares outstanding 66.5 – 67.5 million shares Cash f
Slide 20: 2023 Full year regional outlook
2023 Full year regional outlook 2023 • Expect net sales to be up 5% – 10% vs. North America • Expect operating income to be up 20% – 25% 2022 • Expect net sales to be flat to down 5% South America • Expect operating income to be down mid to high teens • Expect net sales to be flat Asia-Pacific • Exp
Slide 21: Profitable growth and raising full year outlook
Profitable growth and raising full year outlook • Customer inventory correction largely behind us • Anticipate sequential improvements in shipments should continue • Business remains resilient and our teams are operating with agility • Strong profit growth and year-over-year gross margin expansion •
Slide 22: Questions & Answers
Questions & Answers DRIVINGROWTH Customer Co-Creation and Consumer Preferred Innovation ORSEO STARCH-BASED CLEAN AND SIMPLE PLANT-BASED SUGAR REDUCTION FOOD SYSTEMS TEXTURIZERS INGREDIENTS PROTEINS AND SPECIALTY SWEETENERS uoljeaiD onjeA = ——> = ¢ oO 9 o 2. ° s Supply Chain and Operational Excellenc
Slide 23: Upcoming investor activities
Upcoming investor activities Stephens Annual Investment Conference November 15, 2023 Oppenheimer Midwest Industrial Summit December 13, 2023 23
Slide 24: Appendix
Appendix NN Ingredion Be what's next.
Slide 25: Non-GAAP Information
Non-GAAP Information To supplement the consolidated financial results prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), we use non-GAAP historical financial measures, which exclude certain GAAP items such as acquisition and integration costs, restructuring and impai
Slide 26: Reconciliation of GAAP net income and diluted EPS to non-GAAP
Reconciliation of GAAP net income and diluted earnings per share (EPS) to non-GAAP adjusted net income and adjusted diluted EPS
Slide 27: Reconciliation of GAAP net income and diluted EPS (continued)
Reconciliation of GAAP net income and diluted earnings per share (EPS) to non-GAAP adjusted net income and adjusted diluted EPS (continued)
Slide 28: Reconciliation of GAAP operating income to non-GAAP adjusted operating income
Reconciliation of GAAP operating income to non-GAAP adjusted operating income Totals may not foot due to rounding
Slide 29: Reconciliation of GAAP effective income tax rate to non-GAAP
Reconciliation of GAAP effective income tax rate to non-GAAP adjusted effective income tax rate Totals may not foot due to rounding
Slide 30: Reconciliation of GAAP effective income tax rate, cont'd
Reconciliation of GAAP effective income tax rate to non-GAAP adjusted effective income tax rate, cont’d
Slide 31: Reconciliation of anticipated GAAP diluted EPS to non-GAAP
Reconciliation of anticipated GAAP diluted earnings per share to anticipated non-GAAP adjusted diluted earnings per share
Slide 32: Reconciliation of anticipated GAAP effective tax rate to non-GAAP
Reconciliation of anticipated reported GAAP effective tax rate to anticipated non-GAAP adjusted effective income tax rate