Slide 1: Fourth Quarter and Full Year 2021 Earnings Presentation
FOURTH QUARTER AND FULL YEAR 2021 EARNINGS PRESENTATION February 24, 2022
Slide 2: We Are Purifying, Protecting and Enhancing Everyday Life
WE ARE PURIFYING, PROTECTING AND ENHANCING EVERYDAY LIFE 2
Slide 3: Use of non-GAAP financial measures
Use of non-GAAP financial measures: This presentation includes certain non‐GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non‐GAAP financial measures to GAAP financial measures are provided within the Appendix to this presentation. In
Slide 4: Agenda
AGENDA 1 Full-year accomplishments 2 Consolidated financial results 3 Segment performance 4 Guidance 5 Q&A 4
Slide 5: Full-Year (FY) Accomplishments
FULL-YEAR (FY) ACCOMPLISHMENTS Delivered strong results in a challenging environment Leveraged operational excellence to serve customers and gain share Strategically invested in growth and our future Accelerated our sustainable value proposition for shareholders and customers 5
Slide 6: Fourth-Quarter (Q4) and FY Consolidated Financial Performance
FOURTH-QUARTER (Q4) AND FY CONSOLIDATED FINANCIAL PERFORMANCE Q4 and FY financials Performance highlights Solid results despite significant supply chain $ in millions Q4 Q4 vs PY FY FY vs PY except percentage and EPS 2021 2020 2021 2020 challenges and inflationary cost pressures, and ∆% ∆% the conti
Slide 7: FY 2021 Financial Metrics and Highlights
FY 2021 FINANCIAL METRICS AND HIGHLIGHTS Net sales and adjusted EBITDA margin (1) Free cash flow (1) $ in millions $ in millions 1392 ▪ Sales grew at 9% 270 ▪ As expected, FCF 1293 1216 CAGR over five years; down versus COVID 1134 up 8% from 2019 2020 level 972 189 908 ▪ Adjusted EBITDA ▪ Up 17+ % v
Slide 8: Performance Chemicals
PERFORMANCE CHEMICALS Q4 % % $ IN MILLIONS FULL YEAR 2021 VS. PRIOR VS. PRIOR YEAR PERIOD 2021 YEAR Performance highlights Net Sales 204.0 23.7% 874.7 23.9% Q4 sales of $204 million and FY sales of $875 million Engineered Polymers 42.2 22.3% 185.8 45.5% both up 24% Industrial Specialties 128.8 27.9%
Slide 9: Performance Materials
PERFORMANCE MATERIALS Q4 % % $ IN MILLIONS FULL YEAR VS. PRIOR VS. PRIOR 2021 YEAR PERIOD 2021 YEAR Performance highlights Net Sales 132.0 (17.9)% 516.8 1.3% Q4 Segment EBITDA 58.0 (31.2)% 249.4 0.1% Sales of $132 million down 18% Segment EBITDA Margin 43.9% -860bps 48.3% -60bps ▪ Compared to record
Slide 10: 2022 Guidance and Outlook
2022 GUIDANCE AND OUTLOOK FY guidance Headwinds ▪ Persistent automotive supply chain issues Financial metric FY guidance ▪ Inflationary pressure on all costs Revenue $1,525 - $1,600 ▪ Ongoing logistics challenges Adj. EBITDA (1) $430 - $460 Tailwinds Capital expenditures $155 – $175 ▪ Strong demand
Slide 11: Committed to Purifying, Protecting and Enhancing the World Around Us
COMMITTED TO PURIFYING, PROTECTING AND ENHANCING THE WORLD AROUND US ASPHALT PAVING Over 60% reduction in total organic compound emissions when using Evotherm® warm mix additive to reduce paving temperatures by 40° to 45° Fahrenheit (1) AUTOMOTIVE EMISSION CAPTURE 40 million tons of CO2 avoided annu
Slide 12: For More Information
FOR MORE INFORMATION Investors Mary Hall (844) 643 - 8489 Media Caroline Monahan (843) 740 - 2068 Thank you for your interest in Ingevity. 12
Slide 13: Appendix
Appendix ™ingevity
Slide 14: Ingevity has presented certain financial measures
Ingevity has presented certain financial measures, defined below, which have not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and has provided a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP. These finan
Slide 15: Reconciliation of Net Income (Loss) (GAAP) to Adjusted Earnings (Loss) (Non-GAAP)
Reconciliation of Net Income (Loss) (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) Three Months Ended December 31, Twelve Months Ended December 31, In millions, except per share data (unaudited) 2021 2020 2021 2020 Net income (loss) (GAAP) $ 29.3 $ 46.0 $ 118.1 $ 181.4 Restructuring and other (income
Slide 16: Reconciliation of Net Income (GAAP) to Adjusted Earnings (Loss) (Non-GAAP)
Reconciliation of Net Income (Loss) (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) Twelve Months Ended December 31, In millions, except per share data (unaudited) 2016 2017 2018 2019 Net income (loss) (GAAP) $ 35.2 $ 126.5 $ 169.1 $ 183.7 Restructuring and other (income) charges (1) 41.2 3.7 (0.5) 1.
Slide 17: Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) Three Months Ended December 31, Twelve Months Ended December 31, In millions, except percentages (unaudited) 2021 2020 2021 2020 Net income (loss) (GAAP) $ 29.3 $ 46.0 $ 118.1 $ 181.4 Provision (benefit) for income taxes 7.0 20.4 44.7
Slide 18: Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) Twelve Months Ended December 31, In millions, except percentages (unaudited) 2016 2017 2018 2019 Net income (loss) (GAAP) $ 44.4 $ 145.2 $ 181.8 $ 183.7 Provision (benefit) for income taxes 42.6 29.6 40.0 44.2 Interest expense, net 17
Slide 19: Reconciliation of Provision for Income Taxes (GAAP) to Provision for Income Taxes on Adjusted Earnings
Reconciliation of Provision for Income Taxes (GAAP) to Provision for Income Taxes on Adjusted Earnings (Non-GAAP) Three Months Ended December 31, Twelve Months Ended December 31, In millions, except percentages (unaudited) 2021 2020 2021 2020 Adjusted EBITDA (Non-GAAP) $ 79.6 $ 110.9 $ 422.2 $ 397.9
Slide 20: Reconciliation of Cash Flow from Operations (GAAP) to Free Cash Flow (Non-GAAP)
Reconciliation of Cash Flow from Operations (GAAP) to Free Cash Flow (Non-GAAP) Three Months Ended December 31, Twelve Months Ended December 31, In millions (unaudited) 2021 2020 2021 2020 Cash Flow from Operations $ 76.0 $ 153.3 $ 293.0 $ 352.4 Less: Capital Expenditures 37.4 31.1 103.8 82.1 Free C
Slide 21: Calculation of Net Debt Ratio (Non-GAAP)
Calculation of Net Debt Ratio (Non-GAAP) In millions, except ratios (unaudited) December 31, 2021 December 31, 2020 Notes payable and current maturities of long-term debt $ 19.6 $ 26.0 Long-term debt including finance lease obligations 1,250.0 1,267.4 Debt issuance costs 10.9 13.1 Total Debt $ 1,280