Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — Gardner Denver — Q2 2018 Earnings Presentation
21 slides from Ingersoll Rand's earnings presentation, Aug 2, 2018
Slide 1: Gardner Denver Q2 2018 Earnings Presentation
Gardner Denver Q2 2018 Earnings Presentation August 02, 2018
Slide 2: Replay Information
Replay Information ▪ Dial toll-free: +1.877.344.7529 ▪ International: +1.412.317.0088 ▪ Conference ID: #10122501 ▪ Log on to: http://investors.gardnerdenver.com 2
Slide 3: Disclaimer
Disclaimer Forward-Looking Statements During the course of this presentation, we may make “forward-looking statements” within the meaning of the US federal securities laws. In fact, all statements made during this presentation other than statements of historical fact are forward-looking statements.
Slide 4: Agenda
Agenda ▪ Highlights ▪ Q2 2018 Financial Performance ▪ Segment Highlights ▪ Full Year 2018 Guidance & Summary ▪ Q&A 4
Slide 5: Q2 Highlights
Q2 Highlights Solid performance across all three segments and continued execution of our value-creation strategy • Revenue of $668M, up 15% versus prior year Strong • Adjusted EBITDA of $162M, up 22% versus prior year Execution • Adj EBITDA margin of 24.2%, an improvement of 140 basis points versus
Slide 6: Our Strategy
Our Strategy Engagement initiative driving 500+ Deploy Talent bps improvement in Net Working Capital in Q2 2018 Expand Margins Accelerate Growth Allocate Capital Effectively 6
Slide 7: Q2 Financial Performance
Q2 Financial Performance
Slide 8: Q2 2018 Financial Performance
Q2 2018 Financial Performance ($M, excl. EPS) Revenue Adjusted EBITDA Adjusted EPS1 Up 15% Up 22% Up 83% Margin Up 140 bps $668 $162 $0.44 $132 $579 24.2% $0.24 Margin 22.8% Margin Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 Financial Performance Reinforcing Investment Thesis 1 Adjusted EPS is d
Slide 9: Q2 2018 Financial Performance
Q2 2018 Financial Performance ($M) Working Capital Free Cash Flow1 Leverage (Op. Working Capital as % of LTM Sales) (Net Debt / LTM Adjusted EBITDA) Improved 530 bps Up $111M Improved 0.4x Sequentially $124 4.2x 30.4% 2.8x 2.4x 25.1% $12 Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q1'17 Q1'18 Q2'18 Pro-forma IP
Slide 10: Q2 2018 Segment Performance
Q2 2018 Segment Performance
Slide 11: Industrials Segment – Q2 Highlights
Industrials Segment – Q2 Highlights (Dollars in millions) As Prior YOY Ex-FX YOY Reported Year Change Change Revenue $328.7 $282.8 16.2% 11.8% Adjusted EBITDA $71.1 $63.4 12.1% 7.4% Adjusted EBITDA Margin 21.6% 22.4% (80) bps Innovation in Action Highlights: Orders up 20% as reported; up 15% ex-FX
Slide 12: Energy Segment – Q2 Highlights
Energy Segment – Q2 Highlights (Dollars in millions) As Prior YOY Ex-FX YOY Reported Year Change Change Revenue $273.1 $239.5 14.0% 12.2% Adjusted EBITDA $79.7 $62.2 28.1% 26.4% Adjusted EBITDA Margin 29.2% 26.0% 320 bps Innovation in Action Highlights: Orders up 14% as reported; up 12% ex-FX Up
Slide 13: Medical Segment – Q2 Highlights
Medical Segment – Q2 Highlights (Dollars in millions) As Prior YOY Ex-FX YOY Reported Year Change Change Revenue $66.4 $56.8 16.9% 12.3% Adjusted EBITDA $18.0 $15.4 16.9% 11.0% Adjusted EBITDA Margin 27.1% 27.1% 0 bps Innovation in Action Highlights: Orders up 27% as reported; up 22% ex-FX Reven
Slide 14: 2018 Guidance & Summary
2018 Guidance & Summary
Slide 15: 2018 Guidance
2018 Guidance ▪ Adjusted EBITDA (raised bottom end) $690M to $705M (from $685M to $705M) ▪ Capital Expenditures (reduced) $60M to $70M (from $65M to $75M) ▪ Tax Rate 26% to 28% ▪ Year End Net Debt Leverage (improved)1 ~2.0x (from ~2.1x to 2.3x) ▪ Average Shares Outstanding2 ~210M Tariffs Due to manu
Slide 16: Summary
Summary Strong Q2’18 performance with progress evident in growth, margins and cash generation 15% revenue growth with double-digit growth in all three segments Double digit orders growth across all three segments 24.2% adjusted EBITDA margin with margin expansion of 140 bps Free cash flow
Slide 17: Q&A
Q&A
Slide 18: Appendix
Appendix
Slide 19: Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS
Reconciliation of Net Income/(Loss) and Earnings/(Loss) per Share to Adjusted Net Income and Adjusted Earnings per Share GARDNER DENVER HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME (LOSS) AND EARNINGS (LOSS) PER SHARE TO ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE (Dollars in
Slide 20: Reconciliation of Net Income to Adjusted EBITDA, Adjusted Net Income and Free Cash Flow
Reconciliation of Net Income/(Loss) to Adjusted EBITDA and Adjusted Net Income and CFOA to Free Cash Flow GARDNER DENVER HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA AND ADJUSTED NET INCOME AND CASH FLOWS - OPERATING ACTIVITIES TO FREE CASH FLOW (Dollars in
Slide 21: Reconciliation of Segment Adjusted EBITDA to Income Before Income Taxes
Reconciliation of Segment Adjusted EBITDA to Income/(Loss) Before Income Taxes GARDNER DENVER HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF SEGMENT ADJUSTED EBITDA TO INCOME (LOSS) BEFORE INCOME TAXES (Dollars in millions) (Unaudited) For the Three For the Six Month Period Ended Month Period End