Slide 1: Engineered Polymers
Engineered Polymers May 28, 2020 Mike Smith, EVP & President, Performance Chemicals Stephen Lewis, VP, Engineered Polymers 1
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 forward looking statements generally include the words “may,” “could,” “should,” “believes,” “plan
Slide 3: Strong, Experienced Business Leadership
Strong, Experienced Business Leadership Mike Smith Stephen Lewis Executive Vice President Vice President, and President, Engineered Polymers Performance Chemicals ▪ Joined Ingevity in 2016 ▪ Joined Ingevity in 2019 ▪ 23 years at FMC Corporation, positions ▪ Over 30 years in the polyurethanes industr
Slide 4: Company Overview
Company Overview Performance Performance Chemicals Materials Carbon Pavement Oilfield Industrial Engineered Technologies Technologies Technologies Specialties Polymers 2019 Sales $491 million $183 million $111 million $386 million $122 million(1) 2019 Segment $213 million $183 million EBITDA #1 in P
Slide 5: Value-Creating Acquisition
Value-Creating Acquisition Strategic Rationale ▪ Strong, market-leading business focused on high- growth end-use applications ▪ Complementary fit with Ingevity business model and capabilities o Technology-focused relationships drive customer intimacy o Similar manufacturing process and approach ▪ Pr
Slide 6: Business Overview – Engineered Polymers
Business Overview – Engineered Polymers Business Description Business Unit Sales(2) ($M) High-performance additives which serve as critical 200 2015 inputs to a variety of end-uses CAGR ▪ Capa® monomer: Principal building block for +5.4% 150 internal and customer use ▪ Capa® polyols: a range of low
Slide 7: Engineered Polymers: Well-Positioned for Value Creation
Engineered Polymers Well-Positioned for Value Creation Market leader in caprolactone monomer and derivative chemistry Niche chemistry with defensible competitive advantages Targeted markets and applications with higher growth rates and significant upside in market penetration Technology-focused rela
Slide 8: What is Caprolactone?
What is Caprolactone? Capa® Value Chain Key Performance Attributes Biodegradable Tougher Food friendly Benzene Hydrogen peroxide Feedstock Capa® molecules Cyclohexanone More Brighter resistant Monomer Caprolactone monomer Better More Long- Flexible looking lasting Caprolactone Caprolactone thermopla
Slide 9: Ingevity Polyols Offer Significant Advantages
Ingevity Polyols Offer Significant Advantages Characteristics and Advantages of Polyols in High-Performance Polyurethane Systems ▪ Strength ▪ Excellent dynamic performance ▪ High durability ▪ Excellent low-temperature ▪ Caprolactone ▪ High quality finish properties Polyols Specialty ▪ Polycarbonate
Slide 10: Innovative Technology Adoption: Polyols for Coatings
Innovative Technology Adoption Polyols for Coatings Challenge Industrial, aerospace and automobile exteriors require coatings that can withstand harsh weather and extreme temperatures while also being more environmentally friendly. Benefits ▪ Increased impact resistance by over 500% (1) in standard
Slide 11: Innovative Technology Adoption: Polyols for Elastomers
Innovative Technology Adoption Polyols for Elastomers Challenge Durability and the ability to perform in extreme temperatures are critical for the polyurethane elastomer materials used to produce seals and gaskets for commercial construction equipment. Benefits ▪ Improved water resistance by up to 4
Slide 12: Ingevity Thermoplastics Enhance Various Applications
Ingevity Thermoplastics Enhance Various Applications Characteristics and Advantages of Thermoplastics ▪ Durable ▪ Moldable at 60°C ▪ Strong ▪ Repeatedly reshapable ▪ Stiff ▪ Biodegradable Examples Key Benefits End-Products Adhesives ◼ Unrivalled durability ◼ Hot-melts ◼ Penetrates difficult substrat
Slide 13: Innovative Technology Adoption: Thermoplastics for Bioplastics
Innovative Technology Adoption Thermoplastics for Bioplastics Challenge Demand continues to increase for biodegradable plasticware that can compost rather than pollute, yet still provide the same convenience and performance as traditional plastic packaging, utensils and straws. Benefits ▪ 100% (1) b
Slide 14: Innovative Technology Adoption: Thermoplastics for Adhesives
Innovative Technology Adoption Thermoplastics for Adhesives Challenge The furniture manufacturing industry continues to demand longer-lasting adhesives with a reduced environmental footprint than traditional solvent- based formulations. Benefits ▪ Fully stable in heat and moisture(1), showing little
Slide 15: Established Global Leader in Monomer and Downstream Derivatives
Established Global Leader in Monomer and Downstream Derivatives Major Caprolactone Producers (>5kt) Vertical integration Monomer Major Dedicated Geographic capacity Location Process Raw materials Downstream products Producers plant markets (kt) H2 O2 Cyclohex. Polyols Thermopl. Warrington Hydrogen ~
Slide 16: Four Strategic Pillars Driving Growth
Four Strategic Pillars Driving Growth 1 2 3 4 Prioritizing Focus on Innovation Maintain derivative strategic, and new market share products higher- business and while margin and development leadership maintaining high-growth to fuel position market end-use growth through leadership in applications s
Slide 17: Four Strategic Pillars Driving Growth
Four Strategic Pillars Driving Growth 1 2 3 4 Prioritizing Focus on Innovation Maintain derivative strategic, and new market share products higher- business and while margin and development leadership maintaining high-growth to fuel position market end-use growth through leadership in applications s
Slide 18: Prioritizing Derivative Products While Maintaining Market Leadership in Monomer
1 Prioritizing Derivative Products While Maintaining Market Leadership in Monomer 2017 2022 3% Revenue breakdown 19% 24% 32% 30% 45% 48% 69% 81% Derivatives Monomer (s) Polyols Thermoplastics Lactides ▪ Capa® actively pursues a targeted strategy to focus on the development and delivery of caprolacto
Slide 19: Four Strategic Pillars Driving Growth
Four Strategic Pillars Driving Growth 1 2 3 4 Prioritizing Focus on Innovation Maintain derivative strategic, and new market share products higher- business and while margin and development leadership maintaining high-growth to fuel position market end-use growth through leadership in applications s
Slide 20: Focus on Strategic Higher-Margin, High-Growth End-Use Applications
2 Focus on Strategic Higher-Margin, High- Growth End-Use Applications Resins and Caprolactone <20% adopted in addressable markets Coatings Estimated caprolactone current market size and addressable market potential ($M) 490 Total addressable market Caprolactones current share Elastomers 220 175 165
Slide 21: Four Strategic Pillars Driving Growth
Four Strategic Pillars Driving Growth 1 2 3 4 Prioritizing Focus on Innovation Maintain derivative strategic, and new market share products higher- business and while margin and development leadership maintaining high-growth to fuel position market end-use growth through leadership in applications s
Slide 22: Innovation and New Business Development to Fuel Growth
3 Innovation and New Business Development to Fuel Growth Continued development of new applications for existing markets and innovative downstream derivatives Capa® polyols in Capa® polyols to Capa® Capa® polyols to sports flooring produce a thermoplastics as a produce a resilient applications microc
Slide 23: Four Strategic Pillars Driving Growth
Four Strategic Pillars Driving Growth 1 2 3 4 Prioritizing Focus on Innovation Maintain derivative strategic, and new market share products higher- business and while margin and development leadership maintaining high-growth to fuel position market end-use growth through leadership in applications s
Slide 24: Maintain Market Share and Leadership Position Through Strategic Capex Initiatives
4 Maintain Market Share and Leadership Position Through Strategic Capex Initiatives Flexible manufacturing site with in-house innovation and technical capability Monomer Plant Largest caprolactone plant in the world with flexible capabilities to support growth Leeds Liverpool Manchester ◼ Complex ma
Slide 25: Engineered Polymers: Well-Positioned for Value Creation
Engineered Polymers Well-Positioned for Value Creation Market leader in caprolactone monomer and derivative chemistry Niche chemistry with defensible competitive advantages Targeted markets and applications with higher growth rates and significant upside in market penetration Technology-focused rela
Slide 26: Appendix
Appendix 26
Slide 27: Abbreviations
Abbreviations EO Ethylene Oxide EVA Ethylene Vinyl Acetate HDO 1,6-Hexanediol PA Polyamide PBAT Polybutylene Adipate Terephthalate PBS Polybutylene Succinate PLA Poly Lactic Acid PO Propylene Oxide PTMEG Poly-tetramethylene Glycol PU Poly Urethane PUE Polyurethane Elastomer TPE Thermoplastic Elastom