Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — Q3 2021 Earnings Presentation
24 slides from Ingersoll Rand's earnings presentation, Nov 4, 2021
Slide 1: Ingersoll Rand Q3 2021 Earnings Presentation
Ingersoll Rand Q3 2021 Earnings Presentation November 4, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, including s
Slide 3: A Premier Industrial Company with Iconic Brands and Market-Leading Positions
A Premier Industrial Company with Iconic Brands and Market-Leading Positions IRX Fueling Strong Performance 1 Commercial and operational outperformance in Q3 2021 amidst challenging supply chain and inflationary environment Significant Continued Investment in our Company 2 Organic and inorganic grow
Slide 4: Recent Key Accomplishments – Guided By Our Strategic Imperatives
Recent Key Accomplishments – Guided By Our 5 Strategic Imperatives Deploy Talent Expand Margins Operate Sustainably Improved employee engagement scores YoY; Improved total company Adj. EBITDA¹ Received 2nd sustainability upgrade from MSCI 17% increase over 3 years margin 110 bps YoY driven by
Slide 5: Significant Organic Investment Supported by Secular Trends is Fueling Growth
Significant Organic Investment Supported by Secular Trends is Fueling Growth Demand Generation Industrial Internet of Things (IIoT) Products / Services Innovation Organic Holistic customer buying cycle approach Multi-layer growth approach Accelerating cadence of Innovation Growth • Leveraging
Slide 6: Infusing Investments to Manage Supply Chain Environment Effectively
Infusing Investments to Manage Supply Chain Environment Effectively Global Sourcing & Competitive Results Logistics (GSL) Advantage • 36 Resources Tiered Approach Nimble approach between GSL and P&L teams to drive cost and supplier performance • ~$1.2B Direct Materials • ~$120M Freight Leveraging
Slide 7: Recent Acquisitions Support Growth Strategy
Recent Acquisitions Support Growth Strategy Key Characteristics Tuthill Pumps¹ Air Dimensions² Lawrence Factor3 Manufacturer of gear and piston pumping Market Market leader in gas diaphragm vacuum pumps Leader in air purity analysis with both remote- solutions for sustainable, high-growth end
Slide 8: IRX is our Competitive Differentiator – Q3 2021 Highlights
IRX is our Competitive Differentiator – Q3 2021 Highlights¹ Cost Synergy On track to deliver $300M commitment Capture² Strong momentum Orders and • Orders: Up 37% YoY; strong organic growth across both segments (ITS Revenue +31% & PST +25%) • Revenue: Up 19% YoY $314M with margin of 23.7% Adj. EBITD
Slide 9: Q3 2021 vs. Q3 2020 Financial Performance
Q3 2021 vs. Q3 2020 Financial Performance ($M, excl. EPS) Orders Revenue Adj. EBITDA¹ & Margin Adj. Diluted EPS¹ Up 37%; Up 34% ex-FX Up 19%; Up 17% ex-FX Up 25% Up $0.21 Adj. EBITDA Margin Expansion ITS 150 bps PST (100) bps Total IR 110 bps • PST Adj. EBITDA margin down 100 bps driven primarily by
Slide 10: Q3 2021 Financial Performance
Q3 2021 Financial Performance ($M, excl. Leverage) Free Cash Flow1 Leverage2 Cash Flows from Operations less Capex (Net Debt / LTM Adjusted EBITDA¹) Liquidity & Leverage $323³ RMT Transaction Completed $64 $307³ Total available liquidity of $64 $3.1B including: ($15) 2.6x 2.5x ‒ Cash and Cash Equi
Slide 11: Industrial Technologies and Services Q3 2021 Highlights
Industrial Technologies and Services Q3 2021 Highlights Q3 2021 vs. Q3 2020 ($M) Q3 2021 vs. Q3 2020 Revenue / Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆ Revenue $1,070.7 $902.6 18.6% 16.3% Orders Growth 31.3% 2.5% 2.7% 36.5% Adj. EBITDA $272.9 $216.8 25.9% — Revenu
Slide 12: Precision and Science Technologies Q3 2021 Highlights
Precision and Science Technologies Q3 2021 Highlights Q3 2021 vs. Q3 2020 ($M) Q3 2021 vs. Q3 2020 Revenue / Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆ Revenue $254.3 $209.9 21.2% 19.6% Orders Growth 24.5% 1.8% 10.7% 37.0% Adj. EBITDA $75.5 $64.5 17.1% — Revenue Gro
Slide 13: Raising 2021 Guidance
Raising 2021 Guidance Other Assumptions Prior (as of 7/29/21) Revised (as of 11/3/21) • Guidance does not include divested businesses (HPS, SVT) Revenue Adjusted Revenue Adjusted nor pending acquisition of Tuthill Growth1 EBITDA² Growth1 EBITDA² Pumps Total Mid Teens $1,150M - $1,180M High Teens $1,
Slide 14: Virtual Investor Day Save the Date
Virtual Investor Day Save the Date Thursday November 18th 8:00 am – 12:00 pm ET Link to calendar invite available at https://investors.irco.com/events-and-presentations/ 14
Slide 15: Key Takeaways – Investing with Ingersoll Rand
Key Takeaways – Investing with Ingersoll Rand 01 Strong performance in Q3 with momentum into Q4; 2021 is poised to be a strong year 02 Continuing to differentiate Ingersoll Rand as an investment: • Investing for growth • Increasing the quality of the portfolio • Becoming more sustainable 03 Utilizin
Slide 16: Appendix
am) Ingersoll Rand Appendix
Slide 17: Q3 2021 Financial Performance – As Reported
Q3 2021 Financial Performance – As Reported ($M, excl. EPS) Net Income1 EPS2 Up 327% Up $0.23 • Q3 2021 includes ($140) million of pre-tax income from discontinued operations, amortization, restructuring and related business transformation costs, acquisition-related expenses and other adjustments 1
Slide 18: Reconciliation of Net Income (Loss) to Adjusted Net Income
Reconciliation of Net Income (Loss) to Adjusted Net Income (Unaudited; in millions) For the Three Month Period For the Nine Month Period Ended September 30, Ended September 30, 2021 2020 2021 2020 Net Income (Loss) $ 126.8 $ 29.9 $ 271.3 $ (183.5) Less: Income (Loss) from Discontinued Operations (7.
Slide 19: Reconciliation of Diluted Net Income (Loss) Per Share to Adjusted Diluted Net Income Per Share
Reconciliation of Diluted Net Income (Loss) Per Share to Adjusted Diluted Net Income Per Share from Continuing Operations (Unaudited; in millions, except per share amounts) For the Three Month Period For the Nine Month Period Ended September 30, Ended September 30, 2021 2020 2021 2020 Diluted Net In
Slide 20: Reconciliation of Net Income (Loss) to Adjusted Earnings per Share
Reconciliation of Net Income (Loss) to Adjusted Earnings per Share (Unaudited; in millions, except per share amounts) For the Three Month Period For the Nine Month Period Ended September 30, Ended September 30, 2021 2020 2021 2020 Net Income (Loss) $ 126.8 $ 29.9 $ 271.3 $ (183.5) Less: Income (Loss
Slide 21: Reconciliation of Net Income (Loss) to Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted Income from Continuing Operations, Net of Tax and Cash Flow from Operating Activities to Free Cash Flow (Unaudited; in millions) For the Three Month Period Ended September 30, For the Nine Month Period Ended September 30, 2021 2020
Slide 22: Reconciliation of Cash Flow from Operating Activities to Adjusted Free Cash Flow
Reconciliation of Cash Flow from Operating Activities to Adjusted Cash Flow from Operating Activities and Adjusted FCF (Unaudited; in millions) For the Three Month Period For the Nine Month Period Ended September 30, Ended September 30, 2021 2020 2021 2020 Cash Flow from Operating Activities from Co
Slide 23: Reconciliation of Segment Adjusted EBITDA to Net Income (Loss)
Reconciliation of Segment Adjusted EBITDA to Net Income (Loss) (Unaudited; in millions) For the Three Month Period For the Nine Month Period Ended September 30, Ended September 30, 2021 2020 2021 2020 Orders Industrial Technologies and Services $ 1,231.3 $ 902.1 $ 3,477.7 $ 2,257.5 Precision and Sci
Slide 24: Orders and Revenue Growth by Segment
Orders and Revenue Growth by Segment (Unaudited) For the Three Month Period Ended September 30, 2021 Orders Revenue Ingersoll Rand Organic growth 30.1% 13.4% Impact of foreign currency 2.4% 2.1% Impact of acquisitions 4.1% 3.6% Total orders and revenue growth 36.6% 19.1% Industrial Technologies & Se