Slide 1: Second Quarter 2023 Earnings Call
Second Quarter 2023 Earnings Call Jim Zallie President and CEO James Gray Executive Vice President and CFO
Slide 2: Non-GAAP Financial Measures and Forward-Looking Statements
Non-GAAP Financial Measures This presentation provides information about adjusted diluted earnings per share (“adjusted EPS”), adjusted operating income, adjusted effective income tax rate, and other financial measures (collectively, the “non-GAAP financial measures”) which are not measurements of f
Slide 3: CEO Perspective
Jim Zallie President and CEO Second Quarter 2023 Earnings Call CEO Perspective 3
Slide 4: Strong net sales and OI growth across both core and specialty ingredients
Strong net sales and OI growth across both core and specialty ingredients Q2 Net Sales Q2 Adjusted Op Income +1% +17% +4% +20% Absent FX impacts Absent FX impacts 4
Slide 5: Specialty ingredients growth highlights
Specialty ingredients growth highlights • Global specialty net sales grew 3% vs. prior year, more than 4% absent FX impacts • Favorable price mix partially offset by volume and FX • Increasing opportunities for formulating affordable solutions • Resurgence of new product innovation toward value • AT
Slide 6: Specialties growth across the globe
Specialties growth across the globe Specialties as a percentage of net sales vs. prior year comparable period GLOBAL 34% Steady NORTH 27% AMERICA Steady EUROPE, MIDDLE EAST AND AFRICA Growth in starch-based texturizers and sugar ASIA-PACIFIC 58% reduction ingredients Steady SOUTH 26% AMERICA 58% Gro
Slide 7: Natural, high-intensity sweeteners gaining momentum
Natural, high-intensity sweeteners gaining momentum after recent announcements regarding artificial sweeteners Examples of stevia products launched in Q2 185 new PureCircle customers since 2020 $5B* 3.3 TRILLION estimated calories removed from Sugar Reduction consumer diets globally using stevia- Ma
Slide 8: Continued execution against our strategic pillars
Continued execution against our strategic pillars Specialties Growth Commercial Excellence Cost Competitiveness through Operational Excellence • YTD global specialties net sales • Value-based pricing and • Managed COGS change well in grew double-digits absent FX customer mix management light of soft
Slide 9: Financial Update
James Gray Executive Vice President and CFO Second Quarter 2023 Earnings Call Financial Update 9
Slide 10: Q2 highlights: Income statement
Q2 highlights: Income statement $ in millions, unless noted Q2 2022 Q2 2023 Change Net Sales $2,044 $2,069 +1% Gross Profit $390 $441 +13% Gross Profit Margin 19.1% 21.3% 220 bps Reported Operating Income $213 $251 +18% Reported Diluted EPS $2.12 $2.42 $0.30/share Adjusted Operating Income* $215 $25
Slide 11: Q2: Net sales bridge
Q2: Net sales bridge +1% $ in millions $297 $2,069 $2,044 $(47) $(225) Q2 2022 FX Volume Price Mix Q2 2023 11 Totals may not foot due to rounding
Slide 12: Q2: Net sales variance by region
Q2: Net sales variance by region Foreign Net Sales Volume Price Mix Exchange Change North America 0% -10% 15% 5% South America -3% -15% 7% -11% Asia-Pacific -3% -11% 11% -3% EMEA -11% -15% 30% 4% Ingredion -3% -11% 15% 1% 12 Totals may not foot due to rounding
Slide 13: First half 2023 volume change driven by comparisons to elevated prior demand
First half 2023 volume change appears to be largely driven by comparisons to elevated demand in prior years Moving from “Just in Case” to “Just in Time” Supply chain 110% pressures Q2 Indexed against 2019 Quarterly average of Shipped Volume* peak Q4 105% Q1 Q3 Supply chain Q3 pressures Q4 easing Q2
Slide 14: Gross margin recovery due to disciplined value-driven pricing
Gross margin recovery due to disciplined value-driven pricing to optimize customer and product mix +220 bps 21.3% Gross margin 19.1% • Pricing actions offsetting volume shortfall • Continued focus on value-driven pricing, leveraging Pricing Centers of Excellence • Moderating input cost inflation alo
Slide 15: Q2 regional performance: North America and South America
Q2 regional performance: North America and South America North America South America Net Sales Net Sales Absent FX +5% impacts $1,342 -8% $1,284 -11% $290 $257 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Vs PY Vs PY Op Income $ $161 $197 22% Op Income $ $39 $23 -41% Op Inc Margin 12.5% 14.6% 210 bps Op Inc Marg
Slide 16: Q2 regional performance: Asia-Pacific and EMEA
Q2 regional performance: Asia-Pacific and EMEA Asia-Pacific EMEA Net Sales Absent FX Net Sales Absent FX impacts impacts “Flat” +15% 33% -3% +4% $275 $267 $195 $203 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Vs PY Vs PY Op Income $ $21 $27 29% Op Income $ $29 $42 45% Op Inc Margin 7.6% 10.2% 260 bps Op Inc Mar
Slide 17: Q2 EPS bridge
Q2 EPS bridge Amounts are dollars/share 2022 Reported Diluted EPS $ 2.12 Impairment/Restructuring Costs 0.01 Acquisition/Integraion Costs - Discrete tax item and other matters (0.01) 2022 Adjusted Diluted EPS $ 2.12 2023 Adjusted Diluted EPS $ 2.32 Impairment/Restructuring Costs - Acquisition/Integr
Slide 18: YTD highlights: Income statement
YTD highlights: Income statement $ in millions, unless noted YTD 2022 YTD 2023 Change Net Sales $3,936 $4,206 +7% Gross Profit $769 $928 +21% Gross Profit Margin 19.5% 22.1% 260 bps Reported Operating Income $423 $542 +28% Reported Diluted EPS $4.04 $5.27 $1.23/share Adjusted Operating Income* $428
Slide 19: YTD EPS bridge
YTD EPS bridge Amounts are dollars/share 2022 Reported Diluted EPS $ 4.04 Impairment/Restructuring Costs 0.03 Acquisition/Integraion Costs 0.01 Discrete tax item and other matters (0.02) 2022 Adjusted Diluted EPS $ 4.06 2023 Adjusted Diluted EPS $ 5.12 Impairment/Restructuring Costs - Other Non-Oper
Slide 20: Cash from operations and capital allocation
Cash from operations and capital allocation $ millions Net Income $358 Depreciation and amortization $109 Working capital $(218) Other $30 Cash from operations $279 Capital allocation Capital expenditures, net $(153) To Shareholders Dividend payments to INGR Shareholders $(95) 20 Totals may not foot
Slide 21: Full year 2023 outlook
Full year 2023 outlook Net Sales Up mid to high single-digits 2023 Full year Adjusted Operating Income* Up high double-digits Financing costs $115 – $130 million Adjusted effective tax rate* 27.0% – 28.5% Cash from operations $600 – $700 million CAPEX Approximately $300 million Adjusted EPS* $8.80 t
Slide 22: 2023 Full year regional outlook and Q3 preview
2023 Full year regional outlook and Q3 preview • Expect net sales to be up 5% – 10% 2023 North America • Expect operating income to be up 20% – 25% vs. 2022 • Expect net sales to be flat to down 5% South America • Expect operating income to be down mid to high-single digits • Expect net sales to be
Slide 23: Continued profitable growth and raising full year outlook
Continued profitable growth and raising full year outlook • Gross margin recovery continues following two years of significant corn and input cost inflation • Softer volume demand across the food supply chain due to inventory rebalancing and consumers economizing • Pricing and customer mix managemen
Slide 24: Driving Growth / Q&A
Q&A DRIVINGROWTH Customer Co-Creation and Consumer Preferred Innovation ORSEO STARCH-BASED CLEAN AND SIMPLE PLANT-BASED SUGAR REDUCTION FOOD SYSTEMS TEXTURIZERS INGREDIENTS PROTEINS AND SPECIALTY SWEETENERS uoljeaiD onjeA = ——> s < o (a) o a ° s ore Food and industrial ingredrents Supply Chain and O
Slide 25: Upcoming investor activities
Upcoming investor activities Barclays Global Consumer Staples Conference September 5, 2023 Toronto non-deal roadshow September 12, 2023 Global virtual non-deal roadshow September 18, 2023 25
Slide 26: Appendix
Appendix NN Ingredion Be what's next.
Slide 27: Non-GAAP Information
Non-GAAP Information To supplement the consolidated financial results prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), we use non-GAAP historical financial measures, which exclude certain GAAP items such as acquisition and integration costs, restructuring and impai
Slide 28: Reconciliation of GAAP net income and diluted EPS to non-GAAP adjusted
Reconciliation of GAAP net income and diluted earnings per share (EPS) to non-GAAP adjusted net income and adjusted diluted EPS Totals may not foot due to rounding
Slide 29: Reconciliation of GAAP net income and diluted EPS (continued)
Reconciliation of GAAP net income and diluted earnings per share (EPS) to non-GAAP adjusted net income and adjusted diluted EPS (continued)
Slide 30: Reconciliation of GAAP operating income to non-GAAP adjusted operating income
Reconciliation of GAAP operating income to non-GAAP adjusted operating income Totals may not foot due to rounding
Slide 31: Reconciliation of GAAP effective income tax rate to non-GAAP adjusted
Reconciliation of GAAP effective income tax rate to non-GAAP adjusted effective income tax rate Totals may not foot due to rounding
Slide 32: Reconciliation of GAAP effective income tax rate, cont'd
Reconciliation of GAAP effective income tax rate to non-GAAP adjusted effective income tax rate, cont’d
Slide 33: Reconciliation of anticipated GAAP diluted EPS to non-GAAP adjusted
Reconciliation of anticipated GAAP diluted earnings per share to anticipated non-GAAP adjusted diluted earnings per share
Slide 34: Reconciliation of reported GAAP effective tax rate to anticipated non-GAAP
Reconciliation of reported GAAP effective tax rate to anticipated non-GAAP adjusted effective income tax rate Totals may not foot due to rounding