Slide 1: First Quarter 2021 Earnings Presentation
First Quarter 2021 Earnings Presentation April 29, 2021
Slide 2: Disclaimer
Disclaimer: This presentation contains “forward-looking statements” within the meaning of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements generally include the words “will,” “plans,” “intends,” “targets,” “expects,” “outlook,
Slide 3: Today's Agenda
Today’s Agenda 1. First Quarter Highlights 2. Segment Performance 3. Financial Review 4. Revised Guidance 5. Q&A 3
Slide 4: First Quarter 2021 Results
First Quarter Q1 Q1 vs Prior Year $ in millions 2021 Results Net Sales 2021 320.3 2020 288.2 32.1 % 11.1% % Adj. EBITDA(1) 105.4 92.2 13.2 14.3% Performance Highlights Adj. EBITDA(1) 32.9% 32.0% +90 bps Demand improvement across all businesses Margin and product lines Sales up 11% on volume and
Slide 5: Performance Chemicals
Performance Q1 Q1 vs Prior Year $ in millions Chemicals Net Sales 2021 179.6 2020 167.1 12.5 % 7.5% % Pavement Technologies 21.4 20.7 0.7 3.4% Performance Highlights Industrial Specialties 112.1 110.1 2.0 1.8% Engineered Polymers 46.1 36.3 9.8 27.0% Revenue of $180 million; up 7.5% Segment EBITDA
Slide 6: Performance Materials
Performance Q1 Q1 vs Prior Year $ in millions Materials Net Sales 2021 140.7 2020 121.1 19.6 % 16.2% % Segment EBITDA 73.7 61.2 12.5 20.4% Performance Highlights Segment EBITDA 52.4% 50.5% +190 bps Margin Revenues of $141 million; up 16% Strong automotive production and sales in China supported
Slide 7: GreenGasUSA Holdings, LLC
GreenGasUSA Holdings, LLC Strategic partnership About GreenGas From waste to clean, low-carbon RNG Integrated renewable natural gas (RNG) solutions provider Collects and treats biogas at contracted facilities and then sells as pipeline-quality RNG Provides compression, transportation and deliv
Slide 8: First Quarter 2021 Financial Summary
First Quarter 2021 Financial Summary Capital Structure Working Capital Management $ in millions $ in millions Current Pricing Amount $500m Revolver L+125 $0.0 Term Loan L+150 342.2 Inventory, net $204 $189 $166mm Interest Rate Swap (1) 1.98% Senior Notes 3.875% & 4.5% 850.0 Accounts receivable, net
Slide 9: 2021 Revised Guidance
2021 Revised Guidance ($M) Q1 Revised % FY21 Item FY20 Actual Initial FY21 Guidance Guidance Revenue $1,216.1 $1,250 to $1,300 $1,275 to $1,325 Adjusted EBITDA(1) $397.9 $400 to $420 $410 to $430 Capital expenditures $82.1 $100 – 120 $100 – 120 Free Cash Flow(1) $270.3 >$200 >$200 Net Debt Ratio(1)
Slide 10: For More Information
For More Information Investors Bill Hamilton (843) 740-2138 Media Amy Chiconas (843) 746-8197 Thank you for your interest in Ingevity. 10
Slide 11: Appendix
Appendix 11
Slide 12: First Quarter 2021 Financial Results
First Quarter 2021 Financial Results vs PY $ in millions except EPS 1Q 2021 1Q 2020 ∆% Consolidated Income Statement: Net sales $320.3 $288.2 11.1% Gross Profit $126.2 $114.6 10.1% % Margin 39.4% 39.8% -40 bps Core SG&A (Non-GAAP) (1) $29.2 $28.4 2.8% Depreciation and amortization 10.8 10.1 6.9% Tot
Slide 13: 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 14: Reconciliation to Adjusted Earnings
Reconciliation of Net Income (Loss) (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) Three Months Ended March 31, In millions, except per data (unaudited) 2021 2020 Net income (loss) (GAAP) $ 48.7 $ 45.3 Restructuring and other (income) charges (1) 3.9 0.5 Acquisition and other related costs (2) 0.3 1.
Slide 15: Reconciliation to Adjusted EBITDA
Reconciliation of Net Income (Loss) (GAAP) to Adjusted EBITDA (Non-GAAP) Three Months Ended March 31, In millions, except percentages (unaudited) 2021 2020 Net income (loss) (GAAP) $ 48.7 $ 45.3 Provision (benefit) for income taxes 13.1 9.9 Interest expense, net 12.4 10.9 Depreciation and amortizati
Slide 16: Debt Ratio Calculation
Calculation of Total Debt to Net Income (Loss) Ratio (GAAP) to Net Debt to Adjusted EBITDA Ratio (Non-GAAP) In millions, except ratios (unaudited) March 31, 2021 Notes payable and current maturities of long-term debt $ 19.5 Long-term debt including finance lease obligations 1,263.1 Debt issuance cos
Slide 17: Historical Net Debt Ratio
Calculation of Historical Net Debt Ratio (Non-GAAP) 2017 2018 In millions, except ratios (unaudited) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Debt(1) $ 405.1 $ 370.2 $ 314.0 $ 295.8 $ 628.7 $ 600.2 $ 627.5 $ 610.2 Adjusted EBITDA(2) 50.2 67.2 72.7 52.6 67.1 89.4 90.7 73.3 Pine Chemical Pro Forma (3) 6.0 5.6 7.5
Slide 18: SG&A and Segment EBITDA Reconciliation
Reconciliation of Selling, General and Admin (SG&A) (GAAP) to Core SG&A (Non-GAAP) Three Months Ended March 31, In millions, except percentages (unaudited) 2021 2020 SG&A (GAAP) $ 40.0 $ 38.5 Depreciation and amortization 10.8 10.1 Core SG&A (Non-GAAP) $ 29.2 $ 28.4 Net sales $ 320.3 $ 288.2 SG&A as