Slide 1: Fourth Quarter and Full Year 2024 Earnings Presentation
FOURTH QUARTER AND FULL YEAR 2024 EARNINGS PRESENTATION February 19, 2025
Slide 2: Use of non-GAAP financial measures and forward-looking statements
Use of non-GAAP financial measures: This presentation includes certain non‐GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non‐GAAP financial measures to GAAP financial measures are provided within the Appendix to this presentation. In
Slide 3: Agenda
AGENDA 1 Full Year Accomplishments 2 Consolidated Financial Results 3 Segment Performance 4 Guidance 5 Q&A 3
Slide 4: Full Year Highlights
FULL YEAR HIGHLIGHTS Announced a CEO transition in October, with Luis Fernandez-Moreno named as interim CEO; search for permanent CEO in process Performance Materials posted record revenue and EBITDA as volume outpaced global auto production growth, driven by positive auto mix due to consumer prefer
Slide 5: Fourth Quarter (Q4) and Full Year (FY) Consolidated Financial Performance
FOURTH QUARTER (Q4) AND FULL YEAR (FY) CONSOLIDATED FINANCIAL PERFORMANCE FY GAAP net loss of $430.3 million includes pre-tax charges of $338.9 million primarily related to aggressive repositioning actions for Performance Chemicals and a goodwill impairment of $349.1 million Performance Highlights Q
Slide 6: FY 2024 Financial Metrics and Highlights
FY 2024 FINANCIAL METRICS AND HIGHLIGHTS Net Sales Free Cash Flow(1) $ in millions $ in millions Repositioning actions resulted Free cash flow Road Technologies Industrial Specialties 270 in higher-margin Q1 Q2 Q3 Q4 (“FCF”) of $51 million Advanced Polymer Technologies Performance Materials busi
Slide 7: Performance Materials
PERFORMANCE MATERIALS $ IN MILLIONS Q4 % FULL YEAR % Performance Highlights 2024 VS. PRIOR VS. PRIOR 2024 YEAR PERIOD YEAR Q4 Net Sales 156.2 2.2% 609.6 4.0% Q4 sales increased 2% driven by volume growth in North America and Segment EBITDA 78.3 0.3% 319.1 11.3% China Segment EBITDA Margin 50.1% (100
Slide 8: Advanced Polymer Technologies
ADVANCED POLYMER TECHNOLOGIES % % $ IN MILLIONS Q4 FULL YEAR VS. PRIOR VS. PRIOR 2024 YEAR PERIOD 2024 YEAR Performance Highlights Net Sales 43.9 3.5% 188.6 (7.5)% Q4 Segment EBITDA 6.1 (22.8)% 35.2 (20.9)% Q4 sales were up 4% due to higher volume in all regions, partially offset Segment EBITDA Marg
Slide 9: Performance Chemicals
PERFORMANCE CHEMICALS Performance Highlights Q4 Q4 % % ROAD TECHNOLOGIES: Sales decreased 9% as mild weather in Q4 2023 $ IN MILLIONS FULL YEAR 2024 VS. PRIOR 2024 VS. PRIOR extended the paving season as compared to this year YEAR PERIOD YEAR Net Sales 98.7 (44.1)% 608.2 (32.6)% INDUSTRIAL SPECI
Slide 10: 2025 Guidance and Outlook
2025 GUIDANCE AND OUTLOOK FY Guidance Opportunities: Global industrial demand improves Financial Metric FY Guidance Performance Materials grows sales at a rate higher than global auto production Revenue $1.3 – $1.4 billion Execution of strategic initiatives leads to improved earnings and cash
Slide 11: For More Information
FOR MORE INFORMATION Investors John Nypaver, Jr. (843) 740 - 2002 Media Caroline Monahan (843) 740 - 2068 Thank you for your interest in Ingevity. 11
Slide 12: Appendix
APPENDIX 12
Slide 13: Non-GAAP financial measures definitions
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 accordance with GAAP on the follo
Slide 14: Reconciliation of Net Income and Diluted EPS to Adjusted Earnings
Reconciliation of Net Income (Loss) (GAAP) and Diluted Earnings (Loss) Per Share (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) and Diluted Adjusted Earnings (Loss) per share (Non-GAAP) Three Months Ended December 31, Twelve Months Ended December 31, In millions, except per data (unaudited) 2024 2023
Slide 15: Reconciliation of Net Income and Diluted EPS to Adjusted Earnings (notes)
Reconciliation of Net Income (Loss) (GAAP) and Diluted Earnings (Loss) Per Share (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) and Diluted Adjusted Earnings (Loss) per share (Non-GAAP) (5) As consideration for the termination of the CTO supply contract, we made a cash payment in the amount of $100.0
Slide 16: Restructuring and other (income) charges
Restructuring and other (income) charges Three Months Ended December 31, Twelve Months Ended December 31, In millions 2024 2023 2024 2023 Work force reductions and other $ 2.3 $ 0.9 $ 2.3 $ 12.5 Performance Chemicals' repositioning 14.8 113.1 172.7 113.1 Restructuring charges (1) $ 17.1 $ 114.0 $ 17
Slide 17: Acquisition and other-related (income) charges
Acquisition and other-related (income) charges Three Months Ended December 31, Twelve Months Ended December 31, In millions 2024 2023 2024 2023 Legal and professional service fees $ 0.3 $ (0.2) $ 0.3 $ 3.6 Acquisition-related (income) costs $ 0.3 $ (0.2) $ 0.3 $ 3.6 Inventory fair value step-up amor
Slide 18: Revised 2023 Adjusted Earnings (as previously reported and as revised)
Reconciliation of Net Income (Loss) (GAAP) and Diluted Earnings (Loss) Per Share (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) and Diluted Adjusted Earnings (Loss) per share (Non-GAAP) We revised our December 31, 2023 non-GAAP Adjusted earnings (loss) calculation to remove previous adjustments of $1
Slide 19: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) Three Months Ended December 31, Twelve Months Ended December 31, In millions, except percentages (unaudited) 2024 2023 2024 2023 Net income (loss) (GAAP) $ 16.6 $ (116.8) $ (430.3) $ (5.4) Interest expense, net 20.8 22.7 90.1 87.0 Pro
Slide 20: Revised 2023 Adjusted EBITDA (as previously reported and as revised)
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) We revised our December 31, 2023 non-GAAP Adjusted EBITDA calculation to remove previous adjustments of $19.7 million related to inventory lower of cost or market charges associated with the Company's Performance Chemicals repositioni
Slide 21: Reconciliations of Gross Profit to Adjusted Gross Profit
Reconciliations of Gross Profit (GAAP) to Adjusted Gross Profit (Non-GAAP) Three Months Ended December 31, Twelve Months Ended December 31, In millions, except percentages (unaudited) 2024 2023 2024 2023 Gross Profit (GAAP) $ 101.9 $ 59.5 $ 454.7 $ 471.9 Plus: Depreciation and amortization 15.0 16.9
Slide 22: SG&A to Adjusted SG&A
SGA (GAAP) to Adjusted SG&A (Non-GAAP) Three Months Ended December 31, Twelve Months Ended December 31, In millions, except percentages (unaudited) 2024 2023 2024 2023 SG&A (GAAP) $ 39.4 $ 43.4 $ 166.7 $ 183.7 Research and technical expenses (GAAP) 7.3 7.2 28.1 31.8 Total SG&A (GAAP) 46.7 50.6 194.8
Slide 23: Other (income) expense, net to Adjusted Other (income) expense, net
Other (income) expense, net (GAAP) to Adjusted Other (income) expense, net (Non-GAAP) Three Months Ended December 31, Twelve Months Ended December 31, In millions, except percentages (unaudited) 2024 2023 2024 2023 Other (income) expense, net (GAAP) $ 1.9 $ 19.6 $ 169.8 $ 5.7 Less: Gain on sale of s
Slide 24: Restructuring and Repositioning Charges
Restructuring and Repositioning Charges Three Months Ended December 31, Twelve Months Ended December 31, In millions 2024 2023 2024 2023 Restructuring and other (income) charges, net (1) $ 23.4 $ 120.8 $ 186.2 $ 170.2 Goodwill impairment charges (2) — — 349.1 — Loss on CTO resales (1) 1.9 22.0 52.7
Slide 25: Reconciliation of Cash Flow from Operations to Free Cash Flow
Reconciliation of Cash Flow from Operations (GAAP) to Free Cash Flow (Non-GAAP) Three Months Ended December 31, Twelve Months Ended December 31, In millions (unaudited) 2024 2023 2024 2023 Cash Flow from Operations (GAAP) $ 64.5 $ 44.4 $ 128.6 $ 205.1 Less: Capital Expenditures (GAAP) 24.9 29.2 77.6
Slide 26: Calculation of Net Debt to Adjusted EBITDA Ratio
Calculation of Net Debt to Adjusted EBITDA Ratio (Non-GAAP) In millions, except ratios (unaudited) December 31, 2024 December 31, 2023 Notes payable and current maturities of long-term debt $ 61.3 $ 84.4 Long-term debt including finance lease obligations 1,339.7 1,382.8 Debt issuance costs 4.2 5.3 T
Slide 27: Net Debt to Adjusted EBITDA Ratio, revised 2023
Calculation of Net Debt to Adjusted EBITDA Ratio (Non-GAAP) We revised our December 31, 2023 non-GAAP Net debt ratio calculation to remove the previous adjustment of $19.7 million from the three months ended December 31, 2023, from the last twelve months Adjusted EBITDA related to inventory lower of
Slide 28: Calculation of Historical Net Debt Ratio
Calculation of Historical Net Debt Ratio (Non-GAAP) December 31, In millions, except ratios (unaudited) 2020 2021 2022 2023 Net Debt (Non-GAAP) (1) $ 982.7 $ 928.2 $ 1,324.3 $ 1,297.1 Adjusted EBITDA(2) 397.9 422.2 452.6 377.1 TTM Adjusted EBITDA (Non-GAAP) $ 397.9 $ 422.2 $ 452.6 $ 377.1 Net Debt R