Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — Q3 2022 Earnings Presentation
24 slides from Ingersoll Rand's earnings presentation, Nov 3, 2022
Slide 1: Q3 2022 Earnings Presentation
Ingersoll Rand Q3 2022 Earnings Presentation November 3, 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: Updated Strategic Imperative – Lead Sustainably
Premier Industrial Company with Iconic Brands and Market-Leading Positions Updated Strategic Imperative – Lead Sustainably Industry-leading products offer intrinsic, sustainable benefits to 1 our customers, complementing our innovative employee ownership model Strong Q3 Performance Despite FX Headwi
Slide 4: We Continue to Execute our Compounder Model; Four Elements Today
We Continue to Execute our Compounder Model; We Will Highlight Four Elements Today B Double-digit Demand Digitization Earnings Growth Generation D A Product and Quality of Earnings Service M&A (Price / AMT) + + + Sustainability Industrial Internet of and Efficiency Things (IIoT) Our Competitive High
Slide 5: Aligning to Megatrends: Sustainability as a Growth Enabler
A Aligning to Megatrends: Sustainability as a Growth Enabler Deploy Talent Accelerate Growth Lead Sustainably Expand Margins Allocate Capital Effectively Grow Sustainably Operate Sustainably Offer intrinsically sustainable Support customers in high-growth, What we do to improve our own operations, p
Slide 6: Organic Growth: Commercial Excellence Accelerating Growth
B C Organic Growth: Commercial Excellence Accelerating Growth Challenge – Demand Generation in Europe Challenge – Product Execution in China Leads generated for air compressors in European markets were trending down for Gardner Denver had a good compressor portfolio for the China market, but did not
Slide 7: Inorganic Growth: Expanding our Core Portfolio while Accelerating Close Adjacencies
D Inorganic Growth: Expanding our Core Portfolio while Accelerating Close Adjacencies Description Leading full-service provider of air compressors and Leading Spanish manufacturer of blower and vacuum Leading Indian manufacturer of blower and vacuum systems compressed air system services in France e
Slide 8: Inorganic Growth: Expanding our Portfolio to Increase Value Across Ecosystems
D Inorganic Growth: Expanding our Portfolio to Increase Value Across Ecosystems SPX Flow Air Treatment Portfolio Description Leading manufacturer of desiccant and refrigerated U.S. leader in water-powered flow solutions and IIoT for Highly experienced IIoT, controls and instrumentation dryers, filtr
Slide 9: IRX is our Competitive Differentiator – Q3 Highlights
IRX is our Competitive Differentiator – Q3 Highlights1 Cost Synergy • On track to deliver $300M commitment (including $50M to be realized in 2022) Capture2 • Revisiting funnel actions and ready to pivot if market activity slows down Strong momentum • Orders: Up 10% YoY; Up 14% YoY Organic: ITS +16%
Slide 10: Q3 2022 Financial Performance vs Q3 2021
Q3 2022 Financial Performance vs Q3 2021 Financial Information ($M, excl. EPS) Orders Revenue Adj. EBITDA & Margin1 Adj. Diluted EPS1,2 Up 10%; Up 18% ex-FX Up 14%; Up 22% ex-FX Up 20% Up $0.05 Adj. EBITDA Margin Expansion ITS 70 bps PST (60) bps Total IR 110 bps • Adj. EBITDA1 includes $24M of FX h
Slide 11: Q3 2022 Financial Performance
Q3 2022 Financial Performance ($M, excl. Leverage) Free Cash Flow1 Leverage2 Cash Flows from Operations less Capex Net Debt / LTM Adjusted EBITDA Liquidity & Leverage • $253M of FCF1 generation despite inventory headwind of $69M ($22) • Total available liquidity of $2.6B including: ◦ Cash and Cash E
Slide 12: Industrial Technologies and Services Q3 2022 Highlights
Industrial Technologies and Services Q3 2022 Highlights Q3 2022 vs Q3 2021 ($M) Q3 2022 vs Q3 2021 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆ Revenue $1,199.6 $1,070.7 12.0% 19.3% Orders Growth 16.2% (6.8)% 0.7% 10.1% Adj. EBITDA $314.0 $272.9 15.1% — Revenu
Slide 13: Precision and Science Technologies Q3 2022 Highlights
Precision and Science Technologies Q3 2022 Highlights Q3 2022 vs Q3 2021 ($M) Q3 2022 vs Q3 2021 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆ Revenue $316.1 $254.3 24.3% 33.1% Orders Growth 2.8% (8.4)% 18.0% 12.4% Adj. EBITDA $92.0 $75.5 21.9% — Revenue Growth
Slide 14: 2022 Revised Guidance
2022 Revised Guidance FY 2022 Assumptions Prior (as of 8/4/22) Updated (as of 11/3/22) • Increased midpoint of Adj. EBITDA range vs prior guidance despite ~$20M of FX Revenue Adjusted Revenue Adjusted headwinds Growth1 EBITDA2 Growth1 EBITDA2 • ~25% Adj. EBITDA YoY growth at the mid- $1,395M - $1,42
Slide 15: Key Takeaways – Investing with Ingersoll Rand
Key Takeaways – Investing with Ingersoll Rand Strong Q3 performance and raising FY 2022 organic revenue growth and adjusted EBITDA 1 guidance; remaining agile and continuing to deliver while adjusting to dynamic market conditions Continuing to differentiate Ingersoll Rand as an investment: • Impactf
Slide 16: Appendix
am) Ingersoll Rand Appendix
Slide 17: Q3 2022 Financial Performance – As Reported
Q3 2022 Financial Performance – As Reported ($M, excl. EPS) Net Income1 EPS2 Up 15% Up $0.06 1 Net Income as reported defined as Net Income (Loss) Attributable to Ingersoll Rand Inc. 2 Diluted EPS defined as (Net Income (Loss) Attributable to Ingersoll Rand Inc.) / (Diluted Average Shares Outstandin
Slide 18: Adjusted Financial Information
Adjusted Financial Information (Unaudited; in millions) For the Three Month Period For the Nine Month Period Ended September 30, Ended September 30, 2022 2021 2022 2021 Revenues $ 1,515.7 $ 1,325.0 $ 4,292.6 $ 3,733.6 Adjusted EBITDA $ 376.1 $ 313.7 $ 1,014.6 $ 849.8 Adjusted EBITDA Margin 24.8 % 23
Slide 19: 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 Nine Month Period Ended September 30, Ended September 30, 2022 2021 2022 2021 Net Income $ 146.0 $ 126.8 $ 389.8 $ 271.3 Less: Income (loss) from discontinued operations 0.6 (7.6) 0.8 73.1
Slide 20: 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 Nine Month Period Ended September 30, Ended September 30, 2022 2021 2022 2021 Diluted Net Income Pe
Slide 21: 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 Nine Month Period Ended September 30, Ended September 30, 2022 2021 2022 2021 Net Income $ 146.0 $ 126.8 $ 389.8 $ 271.3 Less: Income (loss) from disconti
Slide 22: 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 from Continuing Operations For the Three Month Period For the Nine Month Period (Unaudited; in millions) Ended September 30, Ended Sept
Slide 23: Orders & Revenue by Segment and Reconciliation of Segment Adjusted EBITDA
Orders & Revenue by Segment and Reconciliation of Segment Adjusted EBITDA to Net Income (Unaudited; in millions) For the Three Month Period For the Nine Month Period Ended September 30, Ended September 30, 2022 2021 2022 2021 Orders Industrial Technologies and Services $ 1,355.2 $ 1,231.3 $ 3,928.6
Slide 24: Orders and Revenue Growth by Segment
Orders and Revenue Growth by Segment1 (Unaudited) For the Three Month Period Ended September 30, 2022 Orders Revenue Ingersoll Rand Organic growth 13.8% 17.9% Impact of foreign currency (7.1%) (7.5%) Impact of acquisitions 3.8% 4.0% Total orders and revenue growth 10.5% 14.4% Industrial Technologies