Slide 1: Second Quarter 2016 Earnings Presentation
Second Quarter 2016 Earnings Presentation August 4, 2016 1
Slide 2: Disclaimer
Disclaimer This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements generally include the words “may,” “could,” “should,” “believes,” “plans,” “intends,” “targets,” “will,” “expects,” “suggests
Slide 3: Agenda
Agenda 1. Quarter Highlights 2. Segment Performance 3. Financial Review 4. Closing Remarks 5. Q&A 3 3
Slide 4: Second Quarter Highlights
M (USD) Q215 Q216 Chg % Sales 262.2 248.7 (13.5) (5%) Net Income 27.1 25.8 (1.3) (5%) Adj. EBITDA(1) 58.2(2) 58.4 0.2 --- Adj. EBITDA(1) Margin 22.2%(2) 23.5% +130 bps Second Quarter Highlights Completed separation from WestRock Delivered results solidly in line with our expectations Despite s
Slide 5: Performance Materials
All-time quarterly record for sales U.S. Tier 3 and California LEV III regulations phasing in across U.S. and Canada New China 6 regulations published for comment on May 13; implementation could begin 2018 / 2019 First half North American light vehicle production up 2.6%(3) Continued ramp-
Slide 6: Performance Chemicals
Performance Chemicals Record sales to pavement applications; up 5% in quarter; up 8% for the half Continued adoption of innovative products, including Evotherm Industrial specialties sales down 17%; up 2% sequentially Oilfield sales down 27%; up 9% sequentially U.S. and Canada rig count do
Slide 7: Second Quarter 2016 Financial Results: Key Income Statement Metrics
Second Quarter 2016 Financial Results Key Income Statement Metrics (1) Please see appendices included at the end of this presentation for Ingevity's use of non-GAAP financial measures, definitions of those financial measures as well as the reconciliation to the nearest GAAP financial measure. (2) In
Slide 8: Second Quarter 2016 Financial Results: Key Balance Sheet & Cash Metrics
Second Quarter 2016 Financial Results Key Balance Sheet & Cash Metrics in millions 12/31/2015 3/31/2016 6/30/2016 Cash & cash equivalents 32.0 22.7 55.7 Restricted investment (related to capital lease) (1) - - 69.1 Long term debt including capital lease obligation (2) 80.1 80.0 570.0 Net Debt(3) 48.
Slide 9: 2016 Business Outlook and Guidance
2016 Business Outlook and Guidance Item FY16 Revenue $880M to $910M Adjusted EBITDA (1) $180M to $195M Effective tax rate 36-38% Capital expenditures $60M to $70M Free Cash Flow(2) $40M to $50M Net Debt Ratio(3) 2.0-2.5x (1) A reconciliation of Net Income to Adjusted EBITDA as projected for 2016 is
Slide 10: For More Information
For More Information Thank you for your interest in Ingevity! Investors Dan Gallagher (843) 740-2126 Media Jack Maurer (843) 746-8242 10
Slide 11: Appendix
Appendix 11
Slide 12: Non-GAAP Financial Measures
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 accor
Slide 13: Reconciliation of Net Income (GAAP) to Adjusted Earnings (Non-GAAP)
Reconciliation of Net Income (Loss) (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) 13 Reconciliation of 2015 Pro Forma - Adjusted Earnings (Loss) (Non-GAAP)
Slide 14: Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
14 Reconciliation of Net Income (Loss) (GAAP) to Adjusted EBITDA (Non-GAAP) Reconciliation of 2015 Pro Forma - Adjusted EBITDA (Non-GAAP)
Slide 15: Reconciliation of Segment Operating Profit to Segment EBITDA
15 Reconciliation of Segment Operating Profit (GAAP) to Segment EBITDA (Non-GAAP) Reconciliation of 2015 Pro Forma - Segment EBITDA (Non-GAAP)
Slide 16: Notes to the Unaudited Pro Forma Adjustments
Notes to the Unaudited Pro Forma Adjustments 16