Slide 1: Fourth Quarter and Full Year 2022 Earnings Presentation
FOURTH QUARTER AND FULL YEAR 2022 EARNINGS PRESENTATION February 28, 2023
Slide 2: Use of non-GAAP financial measures and forward-looking statements
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 3: Agenda
AGENDA 1 Full year accomplishments 2 Consolidated financial results 3 Segment performance 4 Guidance 5 Q&A 3
Slide 4: Full Year Accomplishments
FULL YEAR ACCOMPLISHMENTS Record revenue and EBITDA(1) year across all Ingevity business lines Invested in several strategic growth opportunities such as the polyols expansion, alternate fatty acid commercialization, new markets for activated carbon, and expansion into road markings with the acquisi
Slide 5: Fourth Quarter and Full Year Consolidated Financial Performance
FOURTH QUARTER (Q4) AND FULL YEAR (FY) CONSOLIDATED FINANCIAL PERFORMANCE Q4 and FY financials Performance highlights $ in millions except percentage and Q4 2022 Q4 2021 vs PY FY 2022 FY 2021 vs PY Record full-year sales of $1.67 billion up 20% and record Q4 sales of EPS ∆% ∆% $383.6 million up over
Slide 6: FY 2022 Financial Metrics and Highlights
FY 2022 FINANCIAL METRICS AND HIGHLIGHTS Net Sales Free Cash Flow (1) $ in millions 1,668 $ in millions Record sales year for both 352.4 FCF of $170.6 million Performance Chemicals and 313.1 reflects strong cash 1,392 293.0 33% Performance Materials 252.0 275.7 generation while 1,293 1,216 conti
Slide 7: Performance Chemicals
PERFORMANCE CHEMICALS Q4 % % $ IN MILLIONS FULL YEAR VS. PRIOR 2022 YEAR PERIOD 2022 VS. PRIOR YEAR Performance highlights Net Sales 250.8 22.9% 1,119.8 28.0% Engineered Polymers 59.6 41.2% 244.7 31.7% Q4 Sales of $250.8 million up 23% and FY sales of $1.12 billion up 28% Industrial Specialties 143.
Slide 8: Performance Materials
PERFORMANCE MATERIALS Q4 % % $ IN MILLIONS VS. PRIOR FULL YEAR VS. PRIOR 2022 YEAR PERIOD 2022 YEAR Performance highlights Net Sales 132.8 0.6% 548.5 6.1% Q4 Sales of $132.8 million flat vs. prior year and FY sales of $548.5 Segment EBITDA 57.5 (0.9)% 252.2 1.1% million up 6% Segment EBITDA Margin 4
Slide 9: Resegmentation Investor Day
RESEGMENTATION INVESTOR DAY May 22nd 9
Slide 10: 2023 Guidance and Outlook
2023 GUIDANCE AND OUTLOOK Opportunities: FY Guidance Increased automotive production Financial FY Guidance metric China market stabilizes Revenue $1.9 - $2.1 billion Increasing infrastructure spending Supply chains normalizing Adj. EBITDA (1) $495 - $515 million Capital expenditures $140 – $
Slide 11: For More Information
FOR MORE INFORMATION Investors John Nypaver, Jr. (843) 740 - 2002 Media Caroline Monahan (843) 740 - 2068 Thank you for your interest in Ingevity. 11
Slide 12: Appendix
APPENDIX 12
Slide 13: Non-GAAP financial measure definitions
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 14: Reconciliation of Net Income and Diluted EPS to Adjusted Earnings
Reconciliation of Net Income (Loss) (GAAP) and Diluted Earnings (Loss) Per Share (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) and Diluted Adjusted Earnings (Loss) Per Share (Non-GAAP) Three Months Ended December 31, Twelve Months Ended December 31, In millions, except per data (unaudited) 2022 2021
Slide 15: Reconciliation of Net Income to Adjusted EBITDA
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) 2022 2021 2022 2021 Net income (loss) (GAAP) $ 15.6 $ 29.3 $ 211.6 $ 118.1 Provision (benefit) for income taxes 4.1 7.0 58.0
Slide 16: Reconciliation of Gross Profit to Adjusted Gross Profit and SG&A
Reconciliation of Gross Profit (GAAP) to Adjusted Gross Profit (Non-GAAP) Three Months Ended December 31, Twelve Months Ended December 31, In millions, except percentages (unaudited) 2022 2021 2022 2021 Gross Profit (GAAP) $ 105.4 $ 105.0 $ 570.1 $ 512.8 Plus: Depreciation and amortization 17.2 17.5
Slide 17: Reconciliation of Other (income) expense and Free Cash Flow
Reconciliation of Other (income) expense, net (GAAP) to Adjusted Other (income) expense, net (Non-GAAP) Three Months Ended December 31, Twelve Months Ended December 31, In millions, except percentages (unaudited) 2022 2021 2022 2021 Other (income) expense, net (GAAP) $ (0.7) $ (1.7) $ (1.7) $ 79.9 L
Slide 18: Reconciliation of Provision for Income Taxes
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) 2022 2021 2022 2021 Adjusted EBITDA (Non-GAAP) $ 74.3 $ 79.6 $ 452.6 $ 422.2
Slide 19: Calculation of Net Debt to Adjusted EBITDA Ratio
Calculation of Net Debt to Adjusted EBITDA Ratio (Non-GAAP) In millions, except ratios (unaudited) December 31, 2022 December 31, 2021 Notes payable and current maturities of long-term debt $ 0.9 $ 19.6 Long-term debt including finance lease obligations 1,472.5 1,250.0 Debt issuance costs 6.5 10.9 T