Slide 1: End Uses and Growth Opportunities for Engineered Polymers
End Uses and Growth Opportunities for Engineered Polymers May 26, 2021 Mike Smith, EVP and President, Performance Chemicals Steve Hulme, Vice President, Engineered Polymers 1
Slide 2: Disclaimer
Disclaimer: This presentation contains “forward-looking statements” within the meaning of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements generally include the words “will,” “plans,” “intends,” “targets,” “expects,” “outlook,
Slide 3: Strong, Experienced Business Leadership
Strong, Experienced Business Leadership Mike Smith Steve Hulme Executive Vice President Vice President, and President, Engineered Polymers Performance Chemicals Joined Ingevity in 2016 Joined Ingevity in 2020 23 years at FMC Corporation, positions Over 30 years of experience in the included:
Slide 4: Today's Agenda
Today’s Agenda Engineered Polymers Business Overview and End Uses Business Strategy for Growth Exciting Growth Opportunities and New End Uses Q&A 4
Slide 5: Engineered Polymers Business Overview and End Uses
Engineered Polymers 1 Business Overview and End Uses 5
Slide 6: Engineered Polymers Business Overview
Engineered Polymers Business overview Product family description Business unit growth ($M) Our Capa® caprolactone-based portfolio is comprised of three 200 product families 161 167 140 128 118 124 Monomer: Main building block for internal and customer use 100 Polyols: Range of polymers used in p
Slide 7: What Are Capa Caprolactones?
What Are Capa Caprolactones? How a single molecule can be derivatized into proprietary, value- added technologies that benefit a broad range of markets Engineered Polymers value chain Cyclohexanone + Hydrogen peroxide Traditional feedstocks Capa enables high-performing Ingevity’s caprolactone end-us
Slide 8: How Our Polyols and Thermoplastics Compare With Competing Technologies and Materials
How Our Polyols and Thermoplastics Compare With Competing Technologies and Materials Capa polyols for high-performing polyurethane materials Polyol performance pyramid Performance characteristics by material Capa adds value particularly where polyesters, polycarbonate Caprolactone polyols and poly
Slide 9: Business Strategy for Growth
Business Strategy for 2 Growth 9
Slide 10: The Engineered Polymers Business Model
The Engineered Polymers Business Model We strategically pursue growing markets and industry-leading customers Product leadership ~70 >80% Top 10 Top 20 ~20 The Capa portfolio is a family of products derivative products products innovation innovation-driven products that address industry drivers and
Slide 11: Five Strategic Pillars Are Driving Engineered Polymers Growth
Five Strategic Pillars Are Driving Engineered Polymers Growth After a strong rebound in 2021, we are targeting a 6-8% CAGR between 2022 – 2026. 1 2 3 4 1 2 3 4 5 Prioritize Focus on Maintain Leverage Innovation derivative strategic, leadership sustainability and new products higher-margin position a
Slide 12: Prioritize Derivative Products While Maintaining Market Leadership in Monomer
1 Prioritize Derivative Products While Maintaining Market Leadership in Monomer Ingevity has 64% of global production capacity Global monomer capacity for key players Manufacturing comparison Other 3% Polyols Thermoplastics Company Location Markets Production Production BASF 11% Warrington, U.K. Glo
Slide 13: Focus on Strategic, Higher-Margin and High-Growth End-Use Markets
2 Focus on Strategic, Higher-Margin and High-Growth End-Use Markets More flexible Biodegradable Capa enables More durable Food-contact approved high-performing More resistant to water, Higher gloss and improved products that are: chemicals and weather overall appearance 28% of NGVT 19% o
Slide 14: Maintain Leadership Position Through Strategic Capex Initiatives
3 Maintain Leadership Position Through Strategic Capex Initiatives With a focus on world-class assets, laboratories and people We remain committed to continually improving: Our innovation capabilities Collaboration with customers and the overall customer experience The unique performance attri
Slide 15: Sustainability Will Continue To Be a Driving Force Behind the Capa Portfolio
4 Sustainability Will Continue To Be a Driving Force Behind the Capa Portfolio Fueling innovation, new business development and growth Our commitment to making a positive global impact Capa helps customers achieve Ingevity’s commitment to making a positive higher-performing, more global impact drive
Slide 16: Exciting Growth Opportunities and New End Uses
Exciting Growth 3 Opportunities and New End Uses 16
Slide 17: Innovation and New Business Development to Fuel Growth
5 Innovation and New Business Development to Fuel Growth Spotlight on innovative technology adoption Featured examples include: Bioplastics Automotive Coatings Adhesives 17
Slide 18: Thermoplastics for Bioplastics
Thermoplastics for Bioplastics Plastic utensils and packaging that fully biodegrades faster than competitors Challenge Capa benefits Demand continues to increase for 100% (2) biodegradability into biodegradable plasticware that can carbon dioxide and water with compost rather than pollute, yet Cap
Slide 19: Polyols for Automotive
Polyols for Automotive Enabling automotive protective films, coatings and parts that are longer-lasting and more comfortable TPU films Jounce bumpers Challenge Automotive OEMs face continually increasing consumer demand for more durable vehicles, as well as tightening regulatory policies across the
Slide 20: Polyols for Automotive
Polyols for Automotive Improving the working life of electric vehicle batteries Battery pads Challenge Capa benefits EV battery packs have multiple cells More durable padding protects that must be kept stable under batteries longer compared to challenging use conditions, with competing materials c
Slide 21: Polyols for Coatings
Polyols for Coatings Longer-lasting, more environmentally friendly industrial paints and coatings Challenge Capa benefits Industrial coatings require extremely Enables less use of solvent in the high durability to withstand harsh formulation, lowering overall VOC weather and chemical exposure. And
Slide 22: Polyols and Thermoplastics for Adhesives
Polyols and Thermoplastics for Adhesives Sustainable, more efficient solutions for automotive, electronics and furniture needs Challenge Capa benefits Manufacturers of industrial adhesives Can be easily substituted for in the furniture, electronics and traditional, less environmentally automotive
Slide 23: Capa Lactide Copolymers for Adhesives
Capa Lactide Copolymers for Adhesives Sustainable, biodegradable adhesives for packaging Challenge Capa benefits (1) Packaging for food and consumer Our lactide polyols: goods must offer high integrity and product protection as an integral Can be easily used in solvent-free component of advertisin
Slide 24: Engineered Polymers: Well-positioned for value creation
Engineered Polymers Well-positioned for value creation Market leader in caprolactone monomer and derivative chemistry Niche chemistry with defensible competitive advantages Targeted applications and markets with higher growth rates and significant upside in market penetration Technology-focused rela
Slide 25: Abbreviations
Abbreviations Abbreviation CASE Coatings, elastomers, adhesives, sealants EO Ethylene oxide EV Electric vehicle EVA Ethyl vinyl acetate PBAT Polybutylene adipate terephthalate PBS Polybutylene succinate PHA Polyhydroxyalkanoate PLA Polylactic acid PO Propylene oxide PTMEG Polytetramethylene ether gl