Ingevity Corporation · NYSE:NGVT

Ingevity — Jefferies Global Industrials Conference 2019

17 slides from Ingevity's conference presentation, Aug 7, 2019

  1. Slide 1: Engineered Polymers

    Engineered Polymers Michael Wilson & Stephen Lewis August 7, 2019

  2. Slide 2: Disclaimer

    Disclaimer: This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements generally include the words “may,” “could,” “should,” “believes,” “plans,” “intends,” “targets,” “will,” “expects,” “suggest

  3. Slide 3: Value-creating acquisition consistent with our strategy

    Value-creating acquisition consistent with our strategy Strategic Rationale  Strong, market-leading business focused on high- growth end-use applications  Complementary fit with Ingevity business model and capabilities  Technology-focused relationships drive customer intimacy  Similar manufactur

  4. Slide 4: What is Caprolactone?

    What is Caprolactone? Capa® value chain Key performance enhancement benefits Biodegradable Benzene Hydrogen peroxide Tougher Food friendly Feedstock Capa molecules Cyclohexanone More Brighter resistant Monomer Caprolactone monomer Better More Long- Flexible looking lasting Caprolactone Caprolactone

  5. Slide 5: Strong, market-leading business focused on high-growth end-use applications

    Strong, market-leading business focused on high-growth end-use applications Projected Market Growth and Share by Product Segment Market Ingevity  Global market leader with 2018 market split by volume Applications Underlying market growth 2018 revenue by product unique technology and  Polyols ~4–5%

  6. Slide 6: Track record of strong growth in markets with significant penetration upside

    Track record of strong growth in markets with significant penetration upside Caprolactone <20% adopted in addressable markets  Significant untapped Estimated caprolactone current market size and addressable market potential ($M) potential within 490 existing key market Total addressable market Capr

  7. Slide 7: Ingevity polyols offer significant advantages over alternatives

    Ingevity polyols offer significant advantages over alternatives Characteristics and advantages of Examples caprolactone polyols SEALS MINING SCREENS WIND TURBINE  Strength  Resistant to wear  High durability and tear Performance advantage  High quality finish  Maintains form  Maintains form an

  8. Slide 8: Ingevity thermoplastics enhance or substitute in a variety of applications

    Ingevity thermoplastics enhance or substitute in a variety of applications Characteristics and advantages of thermoplastics  Durable  Moldable at 60°C  Strong  Repeatedly reshapable  Stiff  Biodegradable Examples Key benefits of caprolactone Alternatives End products Adhesives  Unrivalled dur

  9. Slide 9: Sales from new business development (NBD) pipeline supporting growth

    Sales from new business development (NBD) pipeline supporting growth New prospect Customer progress path Commercialization stage Revenue Potential ~$70M ~$40M Pipeline as of Q4 2018 ~$25M ~$20M ~$25M Pipeline entry Sample Successful Commercial 1 and sample 2 3 4 agreement / 5 Recurring sales approva

  10. Slide 10: Focus on growth through innovation supported by a strong new product pipeline

    Focus on growth through innovation supported by a strong new product pipeline Continued development of new applications for existing markets and innovative downstream derivatives Capa polyols in Capa polyols to Capa thermoplastics Capa polyols to Capa polyols for sports flooring produce a as a heel

  11. Slide 11: Value-creating acquisition consistent with our strategy

    Value-creating acquisition consistent with our strategy  Ingevity is the established market leader in caprolactone monomer & derivative chemistry  We have targeted markets and applications with higher growth rates with significant upside in market penetration  Caprolactone provides product perfor

  12. Slide 12: Appendix

    Appendix 12

  13. Slide 13: World class assets and product development that supports growth

    World class assets and product development that supports growth Flexible manufacturing site with in-house innovation and technical capability Monomer Plant Largest caprolactone plant in the world with flexible capabilities to support growth Leeds Liverpool Manchester  Complex manufacturing process

  14. Slide 14: Ingevity Engineered Polymers competitive advantages

    Ingevity Engineered Polymers competitive advantages Deep customer Technologies not Complex production intimacy as key driver available for licensing process for relevant innovations Niche chemistry with defensible competitive advantage Expensive to replicate a similar platform with comparable comp

  15. Slide 15: Ingevity is the established global leader with strong capabilities in downstream derivatives

    Ingevity is the established global leader with strong capabilities in downstream derivatives Caprolactone producers Vertical integration Monomer Major Dedicated Geographic capacity Location Process Raw materials Downstream products Producers plant markets (kt) H2 O2 Cyclohex. Polyols Thermopl. Warri

  16. Slide 16: Long history of executing strategy and delivering growth

    Long history of executing strategy and delivering growth… 2007 2011 2014 2018 2022 Redefining Focus on selected Pre Investing to Increased focus on applications and Capa market capturing new Perstorp support growth derivative strategy leadership customers  Dow closes  Capa doubles  Pilot plant bu

  17. Slide 17: Abbreviations

    Abbreviations EO Ethylene Oxide EVA Ethylene Vinyl Acetate HDO 1,6-Hexanediol PBAT Polybutylene Adipate Terephthalate PBS Polybutylene Succinate PLA Poly Lactic Acid PO Propylene Oxide PTMEG Poly-tetramethylene Glycol PU Poly Urethane PUE Polyurethane Elastomer TPU Thermoplastic Polyurethane 17

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