Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — Q2 2021 Earnings Presentation
23 slides from Ingersoll Rand's earnings presentation, Jul 29, 2021
Slide 1: Ingersoll Rand Q2 2021 Earnings Presentation
Ingersoll Rand Q2 2021 Earnings Presentation July 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 Further Accelerating Our Transformation 1 Completed Sale of Specialty Vehicle Technologies segment (“SVT”), Impactful Organic Investments, Announced Intention to Acquire Seepex and Maximus Solutions Executing Strong Perform
Slide 4: Recent Key Accomplishments – Guided By Our Strategic Imperatives
Recent Key Accomplishments – Guided By Our 5 Strategic Imperatives Strategic Imperatives Areas of Focus Recent Accomplishments • Nurturing single culture through Purpose & Values Named Elizabeth Hepding as Senior Vice Engagement, Diversity & Inclusion Deploy Talent President, Business Development
Slide 5: Advancing ESG Efforts with a Relentless Focus on Our People and Planet
Advancing ESG Efforts with a Relentless Focus on Our People and Planet Established Key Focus Areas Operated effectively during COVID-19 crisis to keep employees safe and deliver for our customers 2020 Signatory to CEO Action for Diversity and Inclusion; 50% diverse Board of Directors (ethnicity
Slide 6: Recent Acquisitions Support Growth Strategy
Recent Acquisitions Support Growth Strategy Key Characteristics Seepex Maximus Solutions Market Global #2 progressive cavity pump player with substantial installed base A market leader with 2021E Adjusted EBITDA margin in line with current Leader and strong aftermarket support PST margin profile
Slide 7: M&A Pipeline Remains Robust After Recent Announcements
M&A Pipeline Remains Robust After Recent Announcements Active Funnel Development Active Funnel Progression KPIs Since GDI – IR RMT • IRX tools driving weekly progress toward As reported Q1 2021 vs. Q2 2020 Q2 2021 vs. Q2 2020 funnel KPIs with high level of engagement from executive and P&L leadershi
Slide 8: IRX is our Competitive Differentiator – Q2 Highlights
IRX is our Competitive Differentiator – Q2 Highlights¹ Cost Synergy On track to deliver $300M commitment Capture² Strong momentum1 Orders and • Orders: Up 48% Y/Y; strong organic growth across both Revenue segments (ITS +41% & PST +20%) • Revenue: Up 25% Y/Y $292M with margin of 22.8% • Up $75M and
Slide 9: Q2 2021 vs. Q2 2020 Financial Performance
Q2 2021 vs. Q2 2020 Financial Performance ($M, excl. EPS) Orders Revenue Adj. EBITDA & Margin¹ Adj. Diluted EPS¹,² Up 48%; Up 40% ex-FX Up 25%; Up 19% ex-FX Up 34% Up $0.17 Adj. EBITDA Margin Expansion ITS 250 bps PST 40 bps Total IR 160 bps 9 ¹ Non-GAAP measure (definitions and/or reconciliations i
Slide 10: Q2 2021 Financial Performance
Q2 2021 Financial Performance ($M, excl. Leverage) Free Cash Flow1 Leverage2 Cash Flows from Operations less Capex (Net Debt / LTM Adjusted EBITDA) Liquidity & Leverage Total available liquidity of $195 RMT Transaction Completed $4.7B including: $183 $12 $12 ‒ Cash and Cash ($12) $36 Equivalents:
Slide 11: Strong Execution on Synergy Delivery and Cost Control
Strong Execution on Synergy Delivery1 and Cost Control Synergy Delivery Update Managing Price / Cost Equation Reaffirming $300M cost savings target • Expecting price/cost equation to remain positive for 2021 despite headwinds $350M+ Synergy Funnel ‒ Delivered ~40% savings in 2020 (~$115M) from: •
Slide 12: Industrial Technologies and Services Q2 2021 Highlights
Industrial Technologies and Services Q2 2021 Highlights Q2 2021 vs. Q2 2020 ($M) Q2 2021 vs. Q2 2020 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆ Revenue $1,047.5 $829.6 26.3% 20.0% Orders Growth 41.3% 7.5% 4.0% 52.8% Adj. EBITDA $258.6 $183.8 40.7% — Revenue
Slide 13: Precision and Science Technologies Q2 2021 Highlights
Precision and Science Technologies Q2 2021 Highlights Q2 2021 vs. Q2 2020 ($M) Q2 2021 vs. Q2 2020 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆ Revenue $231.6 $195.8 18.3% 13.0% Orders Growth 19.8% 5.7% 1.3% 26.8% Adj. EBITDA $71.1 $59.3 19.9% — Revenue Growth
Slide 14: Raising 2021 Guidance
Raising 2021 Guidance Prior (as of 4/29/21) Revised (as of 7/29/21) Other Assumptions Revenue Adjusted Revenue Adjusted • Guidance does not include HPS, Growth1 EBITDA Growth1 EBITDA SVT or pending Seepex and Maximus Solutions acquisitions Total LDD $1,120M - $1,150M Mid Teens $1,150M - $1,180M • Q3
Slide 15: Key Takeaways – Investing with Ingersoll Rand
Key Takeaways – Investing with Ingersoll Rand 01 Strong performance in Q2 with momentum into Q3; 2021 is poised to be a strong year 02 Continuing to differentiate Ingersoll Rand as an investment: ◦ Focusing the portfolio ◦ Investing for growth ◦ Becoming more sustainable 03 Utilizing IRX to create u
Slide 16: Appendix
am) Ingersoll Rand Appendix
Slide 17: Q2 2021 Financial Performance – As Reported
Q2 2021 Financial Performance – As Reported ($M, excl. EPS) Net Income1 EPS2 Up 232% Up $0.98 • Q2’21 includes $165 million of pre-tax income from discontinued operations, amortization, restructuring and related business transformation costs, acquisition-related expenses and other adjustments 1 Net
Slide 18: Reconciliation of Net Loss to Adjusted Net Income
Reconciliation of Net Loss to Adjusted Net Income For the Three Month For the Six Month Period Period Ended June 30, Ended June 30, 2021 2020 2021 2020 Net Income (Loss) $ 234.6 $ (176.5) $ 144.5 $ (213.4) Less: Income (Loss) from Discontinued Operations 258.5 (7.2) 80.7 5.3 Less: Income Tax Provisi
Slide 19: Reconciliation of Net Income (Loss) Per Share to Adjusted Diluted Earnings Per Share
Reconciliation of Net Income (Loss) Per Share to Adjusted Diluted Earnings Per Share from Continuing Operations For the Three Month Period For the Six Month Period Ended June 30, Ended June 30, 2021 2020 2021 2020 Diluted Income (Loss) Per Share (As Reported)1 $ 0.55 $ (0.43) $ 0.34 $ (0.62) Less: D
Slide 20: Reconciliation of Net Income (Loss) to Adjusted Earnings per Share
Reconciliation of Net Income (Loss) to Adjusted Earnings per Share For the Three Month Period For the Six Month Period Ended June 30, Ended June 30, 2021 2020 2021 2020 Net Income (Loss) $ 234.6 $ (176.5) $ 144.5 $ (213.4) Less: Income (Loss) from Discontinued Operations 258.5 (7.2) 80.7 5.3 Less: I
Slide 21: Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted Net Income and CFOA to Free Cash Flow
Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted Net Income and CFOA to Free Cash Flow For the Three Month Period For the Six Month Period Ended June 30, Ended June 30, 2021 2020 2021 2020 Net Income (Loss) $ 234.6 $ (176.5) $ 144.5 $ (213.4) Less: Income (loss) from discontinued
Slide 22: Reconciliation of Segment Adjusted EBITDA to Net Income (Loss)
Reconciliation of Segment Adjusted EBITDA to Net Income (Loss) For the Three Month Period For the Six Month Period Ended Ended June 30, June 30, 2021 2020 2021 2020 Orders Industrial Technologies and Services $ 1,204.0 $ 787.9 $ 2,246.4 $ 1,355.4 Precision and Science Technologies 255.2 201.3 513.4
Slide 23: Orders and Revenue Growth/(Decline) by Segment
Orders and Revenue Growth/(Decline) by Segment1 For the Three Month Period Ended June 30, 2021 Orders Revenue Ingersoll Rand Organic growth 36.9% 16.0% Impact of foreign currency 7.2% 6.1% Impact of acquisitions 3.4% 2.6% Total orders and revenue growth 47.5% 24.7% Industrial Technologies & Services