Slide 1: First Quarter 2024 Earnings Presentation
FIRST QUARTER 2024 EARNINGS PRESENTATION May 2, 2024
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 Quarter highlights and updates 2 Consolidated financial results 3 Segment performance 4 Guidance 5 Q&A 3
Slide 4: Quarter Highlights and Updates
QUARTER HIGHLIGHTS AND UPDATES Performance Materials (PM) revenue growth up 3% with 53.8% EBITDA margins as automotive carbon volumes were up versus the prior year in all regions Advanced Polymer Technologies (APT) maintained ~20% EBITDA margins and volumes are up sequentially the last two quarters
Slide 5: First Quarter (Q1) Consolidated Financial Performance
FIRST QUARTER (Q1) CONSOLIDATED FINANCIAL PERFORMANCE Performance highlights Q1 financials (1) Sales down 13% driven by Performance Chemicals repositioning and lower Q1 Q1 vs PY sales in APT and Industrial Specialties product line due to weak end $ in millions except percentage and EPS 2024 2023 ∆%
Slide 6: Q1 2024 Financial Metrics and Highlights
Q1 2024 FINANCIAL METRICS AND HIGHLIGHTS Net Sales Free cash flow (1) $ in millions $ in millions Performance Chemicals Performance Materials Advanced Polymers Technologies shifts to be a larger FCF of negative $29 Performance Materials million includes ~$20 percentage of total 30% million of ne
Slide 7: Performance Materials
PERFORMANCE MATERIALS Q1 Q1 $ % $ IN MILLIONS VS. PRIOR VS. PRIOR 2024 2023 YEAR YEAR Performance highlights Net Sales 145.1 141.4 3.7 2.6% Sales of $145.1 million up 3% due to increased pricing and automotive Segment EBITDA 78.0 69.8 8.2 11.7% carbon volumes Segment EBITDA Margin 53.8% 49.4% 440 bp
Slide 8: Advanced Polymer Technologies
ADVANCED POLYMER TECHNOLOGIES Q1 Q1 $ % $ IN MILLIONS VS. PRIOR VS. PRIOR 2024 2023 YEAR YEAR Performance highlights Net Sales 48.0 65.6 (17.6) (26.8)% Sales of $48.0 million down 27% due to demand weakness compared to a Segment EBITDA 9.5 13.8 (4.3) (31.2)% strong prior year Segment EBITDA Margin 1
Slide 9: Performance Chemicals
PERFORMANCE CHEMICALS $ IN MILLIONS Q1 Q1 $ VS. PRIOR % VS. PRIOR Performance highlights 2024 2023 YEAR YEAR Sales of $147.0 million down 21% due primarily to the segment repositioning Net Sales 147.0 185.6 (38.6) (20.8)% INDUSTRIAL SPECIALTIES: Sales down 28% due to lower volumes driven primarily
Slide 10: 2024 Guidance and Outlook
2024 GUIDANCE AND OUTLOOK 2024 Uncertainties: Timing and pace of global industrial recovery Geopolitical risks U.S. Presidential election year dynamics Crude Tall Oil pricing FY Guidance (1) Financial metric FY Guidance Upside to Guidance: Revenue $1.40 - $1.55 billion Strengthened global
Slide 11: For More Information
FOR MORE INFORMATION Investors John E. 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: Definitions of 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 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 March 31, In millions, except per data (unaudited) 2024 2023 Net income (loss) (GAAP) $ (56.0) $
Slide 15: Restructuring and other (income) charges
Restructuring and other (income) charges Three Months Ended March 31, In millions 2024 2023 Work force reductions and other $ — $ 3.1 Performance Chemicals' repositioning 62.3 — Restructuring charges (1) $ 62.3 $ 3.1 North Charleston plant transition 0.5 — Business transformation costs — 2.5 Other (
Slide 16: Acquisition and other-related (income) charges
Acquisition and other-related (income) charges Three Months Ended March 31, In millions 2024 2023 Legal and professional service fees $ 0.3 $ 1.9 Acquisition-related (income) costs $ 0.3 $ 1.9 Inventory fair value step-up amortization (1) — 0.8 (2) Acquisition and other-related (income) charges $ 0.
Slide 17: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) Three Months Ended March 31, In millions, except percentages (unaudited) 2024 2023 Net income (loss) (GAAP) $ (56.0) $ 50.7 Provision (benefit) for income taxes (15.9) 13.4 Interest expense, net 22.3 19.6 Depreciation and amortization
Slide 18: Reconciliation of Gross Profit to Adjusted Gross Profit
Reconciliation of Gross Profit (GAAP) to Adjusted Gross Profit (Non-GAAP) Three Months Ended March 31, In millions, except percentages (unaudited) 2024 2023 Gross Profit (GAAP) $ 99.7 $ 130.4 Plus: Depreciation and amortization 17.6 17.3 Inventory fair value step-up amortization — 0.8 Performance Ch
Slide 19: Reconciliation of SG&A to Adjusted SG&A
Reconciliation of SG&A (GAAP) to Adjusted SG&A (Non-GAAP) Three Months Ended March 31, In millions, except percentages (unaudited) 2024 2023 SG&A (GAAP) $ 47.2 $ 48.6 Research and technical expenses (GAAP) 6.8 8.8 Total SG&A (GAAP) 54.0 57.4 Less: Depreciation and amortization 12.0 12.7 Adjusted SG&
Slide 20: Reconciliation of Other (income) expense, net to Adjusted
Reconciliation of Other (income) expense, net (GAAP) to Adjusted Other (income) expense, net (Non-GAAP) Three Months Ended March 31, In millions, except percentages (unaudited) 2024 2023 Other (income) expense, net (GAAP) $ 32.2 $ (18.2) Less: (Gain) loss on strategic investments 4.8 (19.2) Loss on
Slide 21: 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 March 31, In millions (unaudited) 2024 2023 Cash Flow from Operations (GAAP) $ (12.1) $ 5.3 Less: Capital Expenditures (GAAP) 16.6 25.4 Free Cash Flow (Non-GAAP) $ (28.7) $ (20.1) 2023 In millions (una
Slide 22: Calculation of Net Debt to Adjusted EBITDA Ratio
Calculation of Net Debt to Adjusted EBITDA Ratio (Non-GAAP) In millions, except ratios (unaudited) March 31, 2024 Notes payable and current maturities of long-term debt $ 84.7 Long-term debt including finance lease obligations 1,408.7 Debt issuance costs 5.0 Total Debt $ 1,498.4 Less: Cash and cash