Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — Q4 2022 Earnings Presentation
26 slides from Ingersoll Rand's earnings presentation, Feb 21, 2023
Slide 1: Q4 and Full Year 2022 Earnings
Q4 AND FULL YEAR 2022 EARNINGS
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation by Ingersoll Rand Inc. (the “Company” or “Ingersoll Rand”) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related the Company‘s expectations regarding the performance
Slide 3: Continuing to Exceed Our Commitments
Continuing to Exceed Our Commitments We are a 1 Our Economic Engine continues to deliver on Premier industrial our Investor Day commitments – on track to meet our 2025 targets company with iconic brands and Leading Sustainably market-leading 2 Named to 2022 Dow Jones Sustainability World Index and D
Slide 4: Our Economic Growth Engine Continues to Deliver Compounding Annual Results
Our Economic Growth Engine Continues to Deliver Compounding Annual Results Double-digit Digitization Demand Generation Earnings Growth Product & Quality of Industrial Internet Service M&A Earnings Sustainability and of Things (IIoT) (Price/AMT) Efficiency Enabling Technology Investments i2V High Tee
Slide 5: Organic Growth
Organic Growth Year In Review Digitization Sustainability & Efficiency • Delivered 19% of revenue from IIoT-ready • Selected to provide critical technologies for a +11% products and services in FY 2022, beating $4.5B large scale carbon capture and 2022 and 2023 targets announced during storage proje
Slide 6: Inorganic Growth
Inorganic Growth Year In Review1 Funnel Update Recent M&A ~$800M >5x Paragon Tank Truck Invested in inorganic growth Weighted funnel size vs Q2 2020 • Description: Leading provider of solutions used for loading and unloading dry bulk and liquid tanks in demanding industrial 12 11 environments Acquis
Slide 7: Accelerated our Sustainability Efforts
Accelerated our Sustainability Efforts By leveraging IRX, we achieved placement on DJSI World and DJSI North America Indices 7
Slide 8: Q4 2022 Highlights
IRX is our Competitive Differentiator Q4 2022 Highlights 1 Continued momentum • Organic Orders: Up 2% Orders/Revenue • Organic Revenue2: Up 19% YoY • 2022 Ending Backlog up ~30% YoY $420M with margin of 25.9% • Up $78M YoY, an increase of 23%, and +12% vs prior quarter Adj. EBITDA2 • 180 bps improve
Slide 9: Q4 2022 Financial Performance vs. Q4 2021
Q4 2022 Financial Performance vs. Q4 2021 Financial Information ($M, excl. EPS) Adj. EBITDA1 Margin Change ITS 170 bps PST 330 bps Total IR 180 bps • Adj. EBITDA1 includes ~$25M of FX headwinds as compared to prior year • Adj. Diluted EPS1,2 growth of 6% 9 1 Non-GAAP measure (definitions and/or reco
Slide 10: FY 2022 Financial Performance vs. FY 2021
FY 2022 Financial Performance vs. FY 2021 Financial Information ($M, excl. EPS) Adj. EBITDA1 Margin Change ITS 100 bps PST (70) bps Total IR 120 bps • Adj. EBITDA1 includes ~$70M of FX headwinds as compared to prior year • PST Adj. EBITDA margin up 60 bps ex- • Adj. Diluted EPS1,2 growth of 13% M&A3
Slide 11: Q4 2022 Financial Performance: Liquidity & Leverage
Q4 2022 Financial Performance ($M, excl. Leverage) Liquidity & Leverage • In 2022, returned $294M to shareholders through share repurchases and dividends • Total available liquidity of $2.7B including: • Cash and Cash Equivalents: $1.6B (includes ~$525M of cash which was deployed for SPX Flow Air Tr
Slide 12: Industrial Technologies and Services
Industrial Technologies and Services Broad range of compressor, vacuum and blower solutions as well as industrial technologies including power tools and lifting equipment Q4 2022 vs. Q4 2021 ($M) Q4 2022 vs. Q4 2021 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆
Slide 13: Precision and Science Technologies
Precision and Science Technologies Highly specialized fluid management solutions including precision liquid and gas pumps and niche compression technologies Q4 2022 vs. Q4 2021 ($M) Q4 2022 vs. Q4 2021 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆ Revenue $308.
Slide 14: 2023 Full Year Guidance
2023 Full Year Guidance1 Full Year 2023 Assumptions Key Metrics2 Phasing • 2023 incremental margins of 35-40% H1 Growth: 9-11% • Interest Expense: ~$165M Revenue - Total Ingersoll Rand 7-9% H2 Growth: 4-6% • Adj. Tax Rate: ~23% Ingersoll Rand (Organic) 3-5% • Capex: ~2% of revenue Industrial Technol
Slide 15: Key Takeaways
Robust performance in Q4 2022 while successfully navigating ongoing 01 macro challenges. Momentum into Q1 with 2023 poised to be another strong year. Key Takeaways Continuing to differentiate Ingersoll Rand as an investment: • Impactful innovation targeted at high growth sustainable markets Investin
Slide 16: Appendix
f # s $ = 3 5 2 : 2 peploy Talent IX Append | EXCELLENCE IR. Ingersoll Rand.
Slide 17: Non-U.S. GAAP Measures of Financial Performance
Non-U.S. GAAP Measures of Financial Performance In addition to consolidated GAAP financial measures, Ingersoll Rand reviews various non-GAAP financial measures, including “Organic Revenue Growth,” “Adjusted EBITDA,” “Adjusted Net Income,” “Adjusted Diluted EPS” and “Free Cash Flow.” Ingersoll Rand b
Slide 18: Q4 2022 Financial Performance – As Reported
Q4 2022 Financial Performance – As Reported ($M, excl. EPS) 18 1 Net Income as reported defined as Net Income Attributable to Ingersoll Rand Inc. 2 Diluted EPS defined as (Net Income Attributable to Ingersoll Rand Inc.) / (Diluted Average Shares Outstanding).
Slide 19: FY 2022 Financial Performance – As Reported
FY 2022 Financial Performance – As Reported ($M, excl. EPS) 19 1 Net Income as reported defined as Net Income Attributable to Ingersoll Rand Inc. 2 Diluted EPS defined as (Net Income Attributable to Ingersoll Rand Inc.) / (Diluted Average Shares Outstanding).
Slide 20: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income 20
Slide 21: Reconciliation of Diluted Net Income Per Share to Adjusted Diluted Net Income Per Share
Reconciliation of Diluted Net Income Per Share to Adjusted Diluted Net Income Per Share from Continuing Operations 21
Slide 22: Reconciliation of Net Income to Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Income to Adjusted EBITDA and Adjusted Income from Continuing Operations, Net of Tax and Cash Flows from Operating Activities from Continuing Operations to Free Cash Flow 22
Slide 23: Reconciliation of Segment Adjusted EBITDA to Net Income
Reconciliation of Segment Adjusted EBITDA to Net Income 23
Slide 24: Combined Financial Information by Segment
Combined Financial Information by Segment 24
Slide 25: Orders and Revenue Growth/(Decline) by Segment
Orders and Revenue Growth/(Decline) by Segment1 25
Slide 26: Reconciliation of 2021 Cash Flow from Operating Activities to Adjusted Free Cash Flow
Reconciliation of 2021 Cash Flow from Operating Activities to Adjusted Cash Flow from Operating Activities and Adjusted Free Cash Flow 26