Ingevity Corporation · NYSE:NGVT
Ingevity — Activated Carbon's Runway with the Internal Combustion Engine Webinar (April 2021)
29 slides from Ingevity's conference presentation, Apr 14, 2021
Slide 1: Activated Carbon's Runway With the Internal Combustion Engine
Activated Carbon’s Runway With the Internal Combustion Engine April 14, 2021 Ed Woodcock, EVP and President, Performance Materials Mike Tschantz, Senior Director, Government Relations 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 statements generally include the words “will,” “plans,” “intends,” “targets,” “expects,” “outlook,
Slide 3: Experienced Business and Regulatory Leadership
Experienced Business and Regulatory Leadership Ed Mike Woodcock Tschantz Exec. VP and President, Senior Director, Performance Materials Government Relations Joined Ingevity in 1988 Joined Ingevity in 1996 32 years of global experience managing Performance 25 years of global experience leadin
Slide 4: Today's Agenda
Today’s Agenda Today’s Vehicle and Regulatory Landscape Challenges That May Affect the Pace of Battery Electric Vehicle Adoption Our Role in Hybrid Electric Vehicle Technology and its Anticipated Growth Driving Long-Term Growth of Activated Carbon in the Automotive Space Q&A 4
Slide 5: Today's Vehicle and Regulatory Landscape
Today’s Vehicle and 1 Regulatory Landscape 5
Slide 6: Today's Vehicle Landscape is Highly Diverse
Today’s Vehicle Landscape is Highly Diverse Vehicle Internal Combustion Mild Hybrid Full Hybrid Plug-In Hybrid Battery Electric Fuel Cell Electric make-up Engine (ICE) (MHEV) (FHEV) Electric Vehicle (PHEV) Vehicle (BEV) Vehicle (FCEV) GM eAssist Toyota Prius Chevrolet Volt Tesla models Toyota Miraj
Slide 7: The Current Regulatory Landscape is Dynamic
The Current Regulatory Landscape is Dynamic The Paris Agreement is driving net-zero activity while technology- forcing policy is driving current consumer purchases of EVs Government actions to push electric vehicle uptake Some countries and regions have stated targets for ZEV sales or ICE phase-outs
Slide 8: Policy – NOT Consumer Demand – Will Drive OEM Production Mix Shifts
Policy – NOT Consumer Demand – Will Drive OEM Production Mix Shifts European China1 Union2 U.S. Has NEV and aggressive Update for CO2 performance Expected to have new, stricter corporate average fuel standards for cars and vans is CAFE and CO2 standards under economy (CAFE) standards expected late 2
Slide 9: Challenges That May Affect the Pace of Battery Electric Vehicle Adoption
Challenges That May 2 Affect the Pace of Battery Electric Vehicle Adoption 9
Slide 10: EVs Have No Tailpipe Emissions but Still Impact the Environment
EVs Have No Tailpipe Emissions but Still Impact the Environment A mix of mobility solutions is more realistic to meet net-zero goals Environmental impacts Shifts – rather than eliminates – Increases need for renewable Depletes battery and environmental impact energy and stresses electricity grid mag
Slide 11: Vehicle Electrification Will Cause 'Pain Points' for OEMs
Vehicle Electrification Will Cause ‘Pain Points’ for OEMs OEM reality1 Technology and resource limitations4 Workforce impacts4 “…Dramatic progress in electrification requires Making EV batteries requires a OEM workforce challenges due overcoming tremendous large R&D and production to need for em
Slide 12: Consumer Interest and Demand for EVs is Uncertain
High upfront vehicle cost; residual value and battery pack replacement Consumer Interest cost unknown and Demand for EVs “Range anxiety” due to lack of is Uncertain charging and refueling infrastructure Insufficient supply and model options Concerns for safety and ability for mechanics to fix EV iss
Slide 13: The EV Charging Infrastructure Is Inadequate and Concentrated in Urban Areas
The EV Charging Infrastructure Is Inadequate and Concentrated in Urban Areas Gasoline stations becoming charging points overnight is a stretch Public and workplace charging infrastructure in the U.S.’s 100 most populated cities as a percentage of U.S. public access charging stations infrastructure n
Slide 14: The Journey to Electrification Will Face a Wide Variety of Challenges
The Journey to Electrification Will Face a Wide Variety of Challenges Among others, four key components must align for EVs to take hold Areas of alignment needed for EVs to gain stronger traction Infrastructure Resources Consumers OEMs 14
Slide 15: Our Role in Hybrid Electric Vehicle Technology and its Anticipated Growth
Our Role in Hybrid Electric 3 Vehicle Technology and its Anticipated Growth 15
Slide 16: Forecasted Volume of ICE-Containing Vehicles Plateaus but Remains Steady Through 2040
Forecasted Volume of ICE-Containing Vehicles Plateaus but Remains Steady Through 2040 ICE-containing vehicles include ICE, MHEVs, FHEVs and PHEVs Percent of total vehicle sales by fuel type New vehicle sales by fuel type 100% 75% 120 Non-gasoline, million 50% vehicles 2020-2040 25% 100 Diesel: 168M,
Slide 17: ICE-Containing Vehicle Mix Varies by Region
ICE-Containing Vehicle Mix Varies by Region Vehicles requiring carbon are still the predominant percentage of forecasted sales in the world’s largest automotive markets Contains ICE BEV FCEV Powertrain sales forecasts in millions of vehicles Diesel MM MM MM vehicles China vehicles Europe vehicles U.
Slide 18: PHEVs and Hybrids Show the Most Significant Growth Among Gasoline-Powered Engines
PHEVs and Hybrids Show the Most Significant Growth Among Gasoline-Powered Engines As they will be essential in GHG goal and fuel efficiency compliance Million gasoline vehicles with carbon canisters / year – worldwide Gasoline-burning vehicles include mild 80 and full hybrids, PHEV and gasoline ICE.
Slide 19: Hybrid Electric Technologies Require More Complex Canister Design Solutions
Hybrid Electric Technologies Require More Complex Canister Design Solutions And this advanced carbon-product mix significantly benefits Ingevity Internal Combustion Mild Hybrid Full Hybrid Plug-In Hybrid Battery Electric Fuel Cell Electric Engine (ICE) (MHEV) (FHEV) Electric Vehicle (PHEV) Vehicle (
Slide 20: Driving Long-Term Growth of Activated Carbon in the Automotive Space
Driving Long-Term Growth 4 of Activated Carbon in the Automotive Space 20
Slide 21: Automotive Market Growth Drivers
Automotive Market Growth Drivers Short-term drivers Long-term drivers Annual sales rate and increasing Continued growth in hybrid vehicles product value globally Continued shift to larger vehicles Increasingly stringent emissions like light trucks and SUVs regulations Opportunity to simpli
Slide 22: Annual Sales Rate and Increasing Product Value
Annual Sales Rate and Increasing Product Short-Term Driver Value The number of vehicles benefiting from Ingevity content is expected to increase in the near term, as does the value of content. Strong ongoing ability Global 80 25 China to capture product value 70 20 Reduce production costs Vehicle
Slide 23: Consumer Demand is Driving a Shift to Light Trucks and SUVs
Consumer Demand is Driving a Shift to Short-Term Driver Light Trucks and SUVs Light-duty mix shifts U.S. 1 China2 Europe 3 80% 80% 80% 60% 60% 60% 40% 40% 40% 20% 20% 20% 0% 0% 0% 2008 2010 2012 2014 2016 2018 2020 2008 2010 2012 2014 2016 2018 2020 2008 2010 2012 2014 2016 2018 2020 Consumer demand
Slide 24: OEMs are Likely to Simplify via Global Harmonization
OEMs are Likely to Simplify via Global Short-Term Driver Harmonization Benefits2 Concept of Creation of substantial synergies and cost reductions harmonization1 Better ensure comparability across markets Vehicles sold and put into service in Enable other regions to apply and adapt existing pro
Slide 25: Regulations Across the Globe Will Continue to Become Increasingly Stringent
Regulations Across the Globe Will Long-Term Driver Continue to Become Increasingly Stringent Continue to drive demand for Ingevity’s products Global emissions standard tiers 0.5-1.3L One-day or two-day 2.0-3.0L 2.0-3.0L + Scrubber parking Multi-day parking & “Near Zero” $1-3 of NGVT running loss $12
Slide 26: New Engine Technologies, IP and Defending Our IP
New Engine Technologies, IP and Long-Term Driver Defending Our IP ‘649 patent family update: low-purge engine technology Intellectual property defense ‘649 patent family designed to enable low-purge Continue to pursue legal actions against engines to meet the near-zero emissions MAHLE and BASF t
Slide 27: Ingevity's Carbon Technology Advantage
Ingevity’s Carbon Technology Advantage Long-Term Driver Unique processes and product features are the secret sauce Deep customer relationships with History of quality and reliability, Considered global expert on Tier 1 suppliers and OEMs; Offer with our products used on 1+ regulatory issues and evap
Slide 28: The Sustainable Nature and Environmental Benefits of Our Nuchar Technology
The Sustainable Nature and Environmental Long-Term Driver Benefits of Our Nuchar® Technology Sustainable Renewable Raw Materials Nuchar technology Market applications nature of Water treatment Nuchar Food and beverage Chemical and pharmaceutical Automotive applications Powdered Granular Pell
Slide 29: The Runway for Activated Carbon
The Runway for Activated Carbon: Confidence in strong, long-term growth 40 years of technology leadership; Ingevity is widely recognized by regulators around the world as the leading experts in gasoline vapor emission control A reputation of superior quality and consistency that makes Ingevity the s
Ingevity — Activated Carbon's Runway with the Internal Combustion Engine Webinar (April 2021) on 6ix