Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — Q1 2021 Earnings Presentation
34 slides from Ingersoll Rand's earnings presentation, Apr 29, 2021
Slide 1: Ingersoll Rand Q1 2021 Earnings Presentation
Ingersoll Rand Q1 2021 Earnings Presentation April 29, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, including s
Slide 3: A Premier Industrial Company with Iconic Brands and Market-Leading Positions
A Premier Industrial Company with Iconic Brands and Market-Leading Positions 1 Accelerating Our Transformation Into 2021 Completed Sale of HPS, Announced sale of SVT Delivering Strong Performance During Q1 with 2 Momentum Continuing in Q2 Leveraging IRX to Deliver Our True Potential 3 Highly Engaged
Slide 4: Strong and Consistent Execution to Deliver on Commitments
Strong and Consistent Execution to Deliver on Commitments PHASE 1 PHASE 2 PHASE 3 Strong Foundation Pivot to Growth Portfolio Optimization Nurturing single culture through Purpose & Values / Engagement / Diversity & Inclusion Added ‘domain expertise’ Executing on talent priorities Deploy Talent tale
Slide 5: Advancing Environmental, Social and Governance (ESG) Efforts with a Relentless Focus on Our People and Planet
Advancing Environmental, Social and Governance (ESG) Efforts with a Relentless Focus on Our People and Planet Introduced 2025 Diversity, Equity and Inclusion Goals REPRESENTATION ADVANCEMENT EXPERIENCE Human Capital Management Balancing global representation Fostering inspired teams Belonging is our
Slide 6: Transforming Portfolio with Two Segment Divestitures
Transforming Portfolio with Two Segment Divestitures HPS Transaction Overview Key Takeaways From Divestitures of HPS and Club Car • On April 1, 2021, completed the majority interest sale of High Focuses Ingersoll Rand on providing mission-critical flow Pressure Solutions (“HPS”) business to American
Slide 7: Sale of HPS and Club Car Are Additional Key Milestones in Ingersoll Rand's Evolution
Sale of HPS and Club Car Are Additional Key Milestones in Ingersoll Rand’s Evolution 2021 Ingersoll Rand divests High Pressure Solutions segment to American Industrial Partners 2017 2017 – 2020 2020 Gardner Denver Gardner Denver executes Gardner Denver acquires executes initial accretive bolt-on M&A
Slide 8: Leveraging IRX Has Materially Enhanced M&A Pipeline Growth and Execution
Leveraging IRX Has Materially Enhanced M&A Pipeline Growth and Execution > Funnel Development > Acquisition Execution > Divestiture Execution IRX tools driving weekly progress toward funnel IRX tools implemented Day 1 of each acquisition HPS and SVT processes run concurrently KPIs with high level of
Slide 9: IRX is our Competitive Differentiator – Q1 Highlights
IRX is our Competitive Differentiator – Q1 Highlights Strong momentum1 Orders and • Orders: Up 29% Y/Y; double-digit organic growth across all Revenue segments • Revenue: Up 17% Y/Y; organic growth of 12% Cost Synergy On track to deliver on $300M commitment Commitment $293M with margin of 21.4% • Up
Slide 10: Q1 2021 Financial Performance vs. Q1 2020 Supplemental Financial Information
Q1 2021 Financial Performance vs. Q1 2020 Supplemental Financial Information1 ($M, excl. EPS) Orders Revenue Adj. EBITDA & Margin2 Adj. Diluted EPS3 Up 29%; Up 25% ex-FX Up 17%; Up 13% ex-FX Up 57% Up $0.23 Adj. EBITDA Margin Expansion2 ITS 610 bps PST 350 bps SVT 1,020 bps Total IR 550 bps 1 Q1 202
Slide 11: Q1 2021 Financial Performance
Q1 2021 Financial Performance ($M, excl. Leverage) Free Cash Flow1 Leverage2 Cash Flows from Operations less Capex (Net Debt / LTM Adjusted EBITDA) Liquidity & Leverage $133 RMT Transaction Completed • Total available liquidity of $118 $2.6B including: $103 ◦ Cash and Cash $103 Equivalents: $1.64B ◦
Slide 12: Industrial Technologies and Services Q1 2021 Highlights
Industrial Technologies and Services Q1 2021 Highlights Q1 2021 vs. Q1 20201 ($M) Q1 2021 vs. Q1 2020 Revenue/Orders Bridge1 Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆ Revenue $913.8 $795.8 14.8% 10.6% Orders Growth 11.0% 4.4% 1.8% 17.2% Adj. EBITDA $211.5 $135.1 56.6% — Revenue
Slide 13: Precision and Science Technologies Q1 2021 Highlights
Precision and Science Technologies Q1 2021 Highlights Q1 2021 vs. Q1 20201 ($M) Q1 2021 vs. Q1 2020 Revenue/Orders Bridge1 Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆ Revenue $215.7 $192.2 12.2% 7.8% Orders Growth 12.4% 4.7% 1.2% 18.3% Adj. EBITDA $67.2 $53.3 26.1% — Revenue Growt
Slide 14: Specialty Vehicle Technologies Q1 2021 Highlights
Specialty Vehicle Technologies Q1 2021 Highlights Q1 2021 vs. Q1 20201 ($M) Q1 2021 vs. Q1 2020 Revenue/Orders Bridge1 Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆ Revenue $240.3 $185.4 29.6% 28.7% Orders Growth 88.7% 1.1% —% 89.8% Adj. EBITDA $48.2 $18.4 162.0% — Revenue Growth 28
Slide 15: Increasing 2021 Guidance
Increasing 2021 Guidance Initial Guidance SVT Revised Guidance including SVT Broken Out excluding SVT SVT Removed Phasing Revenue Adjusted from Revenue Adjusted Revenue Growth1 EBITDA Guidance Growth1 EBITDA Growth1 up HSD to $1,230M - ($150M - $1,120M - H1: up Mid Teens TOTAL INGERSOLL RAND up LDD
Slide 16: Key Takeaways – Investing with Us
Key Takeaways – Investing with Us 01 Strong performance in Q1 with momentum into Q2; 2021 is poised to be a strong year 02 Continuing to differentiate Ingersoll Rand as an investment: ◦ Focusing the portfolio ◦ Investing for growth ◦ Becoming more sustainable 03 Utilizing IRX to create unique execut
Slide 17: Appendix
am) Ingersoll Rand Appendix
Slide 18: Q1 2021 Financial Performance – As Reported
Q1 2021 Financial Performance – As Reported ($M, excl. EPS) Orders Revenue Net Income1 EPS2 Up 124% Up 95% Down 146% Down $0.08 • Q1’21 includes $319 million of pre-tax loss from discontinued operations, amortization, restructuring and related business transformation costs, acquisition-related expen
Slide 19: As Reported Financials: Reconciliation of Net Loss to Adjusted Net Income
As Reported Financials: Reconciliation of Net Loss to Adjusted Net Income For the Three Month Period Ended March 31, 2021 2020 Net Loss $ (90.1) $ (36.8) Income (Loss) from Discontinued Operations (206.2) 9.3 Income Tax Benefit (Provision) from Discontinued Operations 4.5 (8.1) Income (Loss) from Co
Slide 20: As Reported Financials: Reconciliation of Net Loss Per Share to Adjusted Diluted Earnings Per Share
As Reported Financials: Reconciliation of Net Loss Per Share to Adjusted Diluted Earnings Per Share from Continuing Operations For the Three Month Period Ended March 31, 2021 2020 Diluted Loss Per Share (As Reported)1 $ (0.21) $ (0.13) Diluted Loss Per Share from Discontinued Operations (As Reported
Slide 21: As Reported Financials: Reconciliation of Net Loss to Adjusted Earnings per Share
As Reported Financials: Reconciliation of Net Loss to Adjusted Earnings per Share For the Three Month Period Ended March 31, 2021 2020 Net Loss $ (90.1) $ (36.8) Income (Loss) from Discontinued Operations (206.2) 9.3 Income (Loss) from Continuing Operations 111.6 (38.0) Plus: Provision for income ta
Slide 22: As Reported Financials: Reconciliation of Net (Loss) Income to Adjusted EBITDA and Free Cash Flow
As Reported Financials: Reconciliation of Net (Loss) Income to Adjusted EBITDA and Adjusted Net Income and CFOA to Free Cash Flow For the Three Month Period Ended March 31, 2021 2020 Net Income (Loss) $ (90.1) $ (36.8) Income (loss) from discontinued operations (206.2) 9.3 Income tax benefit (provis
Slide 23: As Reported Financials: Reconciliation of Segment Adjusted EBITDA to Net Loss
As Reported Financials: Reconciliation of Segment Adjusted EBITDA to Net Loss For the Three Month Period Ended March 31, 2021 2020 Orders Industrial Technologies and Services $ 1,042.4 $ 567.5 Precision and Science Technologies 258.2 130.8 Specialty Vehicle Technologies 404.8 62.4 Total Orders $ 1,7
Slide 24: Unaudited Supplemental Adjusted Combined Financial Information
Unaudited Supplemental Adjusted Combined Financial Information Ingersoll Rand is providing the below unaudited supplemental historical financial information of the Company on a non-GAAP adjusted basis for the quarterly period ended March 31, 2020 as if the Transaction was completed on January 1, 201
Slide 25: Table 1: Unaudited Supplemental Adjusted Combined Financial Information by Segment
Table 1: Unaudited Supplemental Adjusted Combined Financial Information by Segment For the Three Month Period Ended March 31, 2020 Ingersoll Rand Supplemental Adjusted Orders $ 1,321.0 Supplemental Adjusted Revenue (non-GAAP) 1,173.4 Supplemental Adjusted EBITDA (non-GAAP) 186.0 Supplemental Adjuste
Slide 26: Table 2: Supplemental Adjusted Combined Revenue and Order Growth by Segment
Table 2: Unaudited Supplemental Adjusted Combined Revenue and Order Growth / (Decline) by Segment1 For the Three Month Period Ended March 31, 2021 Orders Revenue Ingersoll Rand Organic growth (non-GAAP) 23.8% 11.6% Impact of foreign currency (non-GAAP) 3.9% 3.7% Impact of acquisitions (non-GAAP) 1.4
Slide 27: Table 3: Reconciliation of Supplemental Adjusted Net Income and Diluted EPS
Table 3: Reconciliation of Unaudited Supplemental Adjusted Net Income and Supplemental Adjusted Diluted EPS to Supplemental Further Adjusted Net Income and Supplemental Further Adjusted Diluted EPS For the Three Month Period Ended March 31, 2020 Supplemental Adjusted Net Income $ 6.1 Supplemental Ad
Slide 28: Table 4: Reconciliation of Supplemental Adjusted Net Income to Adjusted EBITDA
Table 4: Reconciliation of Supplemental Adjusted Net Income to Supplemental Adjusted EBITDA and Supplemental Further Adjusted Net Income For the Three Month Period Ended March 31, 2020 Supplemental Adjusted Net Income $ 6.1 Plus: Adjusted interest expense $ 35.2 Adjusted provision for income taxes 2
Slide 29: Table 5: Supplemental Adjusted Revenue by Segment and Segment EBITDA Reconciliation
Table 5: Supplemental Adjusted Revenue by Segment and a Reconciliation of Supplemental Segment Adjusted EBITDA to Supplemental Adjusted Income Before Income Taxes For the Three Month Period Ended March 31, 2020 Supplemental Adjusted Revenue Industrial Technologies & Services $ 795.8 Precision & Scie
Slide 30: Table 6: Reconciliation of GAAP Revenue to Supplemental Adjusted Revenue by Segment
Table 6: Reconciliation of GAAP Revenue to Supplemental Adjusted Revenue by Segment and for the Company and Segment Adjusted EBITDA to Supplemental Segment Adjusted EBITDA For the Three Month Period Ended March 31, 2020 Supplemental GAAP Revenue Adjustments (1) Adjusted Revenue Segment Industrial Te
Slide 31: Table 7: Reconciliation of GAAP Net (Loss) Income to Adjusted EBITDA
Table 7: Reconciliation of GAAP Net (Loss) Income to Adjusted EBITDA and Supplemental Adjusted EBITDA and Supplemental Further Adjusted Net Income For the Three Month Period Ended March 31, 2020 Net Loss (GAAP) $ (36.8) Less: Income from Discontinued Operations, Net of Tax 1.2 Loss from Continuing O
Slide 32: Table 8: Reconciliation of GAAP Diluted EPS to Supplemental Further Adjusted Diluted EPS
Table 8: Reconciliation of GAAP Diluted EPS to Supplemental Further Adjusted Diluted EPS For the Three Month Period Ended March 31, 2020 Diluted Loss Per Share (GAAP) $ (0.13) Diluted Earnings Per Share from Discontinued Operations (GAAP) — Diluted Loss Per Share from Continuing Operations (GAAP) (0
Slide 33: Notes to Tables 3, 4 and 5 of the Unaudited Supplemental Adjusted Combined Financial Information
Notes to Tables 3, 4 and 5 of the Unaudited Supplemental Adjusted Combined Financial Information Notes to Tables 3, 4, and 5 of the Adjusted Combined Financial Information All supplemental financial information presented in this document represents the newly combined Ingersoll Rand giving effect to
Slide 34: Notes to Tables 3, 4 and 5 (continued)
Notes to Tables 3, 4 and 5 of the Unaudited Supplemental Adjusted Combined Financial Information (continued) c.Restructuring and related business transformation costs consisted of the following: For the Three Month Period Ended March 31, 2020 Restructuring charges $ 41.5 Severance, sign-on, relocati