Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — Q2 2022 Earnings Presentation
23 slides from Ingersoll Rand's earnings presentation, Aug 4, 2022
Slide 1: Ingersoll Rand Q2 2022 Earnings Presentation
Ingersoll Rand Q2 2022 Earnings Presentation August 4, 2022
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: A Premier Industrial Company with Iconic Brands and Market-Leading Positions
A Premier Industrial Company with Iconic Brands and Market-Leading Positions Contributing to Customers' Sustainability Efforts 1 Innovation focused on energy efficiency and water conservation create meaningful economic value Continued Strong Operational Performance in Q2 2 Poised for continued momen
Slide 4: Continuing to Grow and Operate Sustainably
Continuing to Grow and Operate Sustainably Two-pronged Approach Deploy Talent Growing Sustainably Operating Sustainably Leverage our expertise in innovation to deliver products Leverage IRX to operationalize sustainability in our own and services: operations: • Driving efficiency, circularity and sa
Slide 5: Breakthrough Sustainable Innovation: Ion Solutions Cold Plasma Water Treatment System
Breakthrough Sustainable Innovation: Ion Solutions Cold Plasma Water Treatment System IR Ion Solutions Uses chemistry – not chemicals – to disinfect and oxygenate water for higher crop yields, more productive livestock, and cleaner surface water Cold Plasma Water Treatment System Creates healthi
Slide 6: M&A Update: Three Bolt-ons Announced, Strong Pipeline
M&A Update: Three Bolt-ons Announced, Strong Pipeline, In Line with Capital Allocation Strategy Alignment with M&A Criteria Exposure to sustainable end markets P High aftermarket content P (Hydro Prokav) Manufacturer of onsite generation systems Manufacturer of Manufacturer of retrofit spare parts a
Slide 7: IRX is our Competitive Differentiator – Q2 Highlights
IRX is our Competitive Differentiator – Q2 Highlights1 Cost Synergy • On track to deliver $300M commitment (including $50M to be realized in 2022) Capture2 • Revisiting funnel actions and ready to pivot if market activity slows down Strong momentum • Orders: Up 10% YoY; continued momentum across bot
Slide 8: Q2 2022 Financial Performance vs. Q2 2021
Q2 2022 Financial Performance vs. Q2 2021 Financial Information ($M, excl. EPS) Orders Revenue Adj. EBITDA & Margin1 Adj. Diluted EPS1,2 Up 10%; Up 15% ex-FX Up 13%; Up 18% ex-FX Up 15% Up $0.08 Adj. EBITDA Margin Expansion ITS 70 bps PST (390) bps Total IR 50 bps • PST Adj. EBITDA margin down 190 b
Slide 9: Q2 2022 Financial Performance
Q2 2022 Financial Performance ($M, excl. Leverage) Free Cash Flow1 Leverage2 Cash Flows from Operations less Capex (Net Debt / LTM Adjusted EBITDA) Liquidity & Leverage IR Merger Completed Total available liquidity of $2.4B including: ($21) ($21) ‒ Cash and Cash Equivalents: ($21) 2.6x $1.3B ‒ Ava
Slide 10: Strategic and Enhanced Capital Structure to Enable Growth and Ensure Resilience
Strategic and Enhanced Capital Structure to Enable Growth and Ensure Resilience Facility Rate Maturity Q1 2022 Balance Q2 2022 Balance Prudent Balance Sheet Management enables execution of our successful growth USD Term Loans S+175bps2 Feb 2027 $2,764 $2,764 strategy and the resilience of the busine
Slide 11: Industrial Technologies and Services Q2 2022 Highlights
Industrial Technologies and Services Q2 2022 Highlights Q2 2022 vs. Q2 2021 ($M) Q2 2022 vs. Q2 2021 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆ Revenue $1,150.5 $1,047.5 9.8% 14.9% Orders Growth 10.8% (4.9)% 0.5% 6.4% Adj. EBITDA $292.0 $258.6 12.9% — Revenu
Slide 12: Precision and Science Technologies Q2 2022 Highlights
Precision and Science Technologies Q2 2022 Highlights Q2 2022 vs. Q2 2021 ($M) Q2 2022 vs. Q2 2021 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆ Revenue $289.4 $231.6 25.0% 31.6% Orders Growth 2.3% (6.4)% 28.8% 24.7% Adj. EBITDA $77.7 $71.1 9.3% — Revenue Growt
Slide 13: Raising 2022 Guidance
Raising 2022 Guidance Prior (as of 5/4/22) Updated (as of 8/4/22) FY 2022 Assumptions • Total Revenue Growth Phasing: • H1 Actual: 15% Revenue Adjusted Revenue Adjusted • H2 Guidance: 8% – 10% Growth1 EBITDA2 Growth1 EBITDA2 • Mid 30s incremental margin expected in 2022 Total 11% – 13% $1,385M - $1,
Slide 14: Key Takeaways – Investing with Ingersoll Rand
Key Takeaways – Investing with Ingersoll Rand Strong Q2 performance with momentum into the back half; remaining agile and 1 continuing to deliver while adjusting to dynamic market conditions Continuing to differentiate Ingersoll Rand as an investment: 2 • Impactful innovation targeted at high-growth
Slide 15: Appendix
am) Ingersoll Rand Appendix
Slide 16: Q2 2022 Financial Performance – As Reported
Q2 2022 Financial Performance – As Reported ($M, excl. EPS) Net Income1 Diluted EPS2 Down 41% Down $0.21 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 17: Adjusted Financial Information
Adjusted Financial Information (Unaudited; in millions) For the Three Month Period For the Six Month Period Ended June 30, Ended June 30, 2022 2021 2022 2021 Revenues $ 1,439.9 $ 1,279.1 $ 2,776.9 $ 2,408.6 Adjusted EBITDA $ 334.9 $ 292.1 $ 638.5 $ 536.1 Adjusted EBITDA Margin 23.3 % 22.8 % 23.0 % 2
Slide 18: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income (Unaudited; in millions) For the Three Month Period For the Six Month Period Ended June 30, Ended June 30, 2022 2021 2022 2021 Net Income $ 139.3 $ 234.6 $ 243.8 $ 144.5 Less: Income from Discontinued Operations 2.0 258.5 0.2 80.7 Less: Income Tax
Slide 19: 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 (Unaudited; in millions, except per share amounts) For the Three Month Period For the Six Month Period Ended June 30, Ended June 30, 2022 2021 2022 2021 Diluted Net Income Per Share (As
Slide 20: Reconciliation of Net Income to Adjusted Earnings per Share
Reconciliation of Net Income to Adjusted Earnings per Share (Unaudited; in millions, except per share amounts) For the Three Month Period For the Six Month Period Ended June 30, Ended June 30, 2022 2021 2022 2021 Net Income $ 139.3 $ 234.6 $ 243.8 $ 144.5 Less: Income from discontinued operations 2.
Slide 21: 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 Flow from Operating Activities to Free Cash Flow For the Three Month Period For the Six Month Period (Unaudited; in millions) Ended June 30, Ended June 30, 2022 2021 2022 2021 Net Inco
Slide 22: Reconciliation of Segment Adjusted EBITDA to Net Income
Reconciliation of Segment Adjusted EBITDA to Net Income (Unaudited; in millions) For the Three Month Period For the Six Month Period Ended June 30, Ended June 30, 2022 2021 2022 2021 Orders Industrial Technologies and Services $ 1,280.6 $ 1,204.0 $ 2,573.4 $ 2,246.4 Precision and Science Technologie
Slide 23: Orders and Revenue Growth by Segment
Orders and Revenue Growth by Segment (Unaudited) For the Three Month Period Ended June 30, 2022 Orders Revenue Ingersoll Rand Organic growth 9.3% 12.8% Impact of foreign currency (5.2%) (5.4%) Impact of acquisitions 5.5% 5.2% Total orders and revenue growth 9.6% 12.6% Industrial Technologies & Servi