Slide 1: Third Quarter 2024 Earnings Call
Third Quarter 2024 Earnings Call Jim Zallie President and CEO James Gray Executive Vice President and CFO
Slide 2: Non-GAAP Financial Measures and Forward-Looking Statements
Non-GAAP Financial Measures This presentation provides information about adjusted diluted earnings per share (“adjusted EPS”), adjusted operating income, adjusted effective income tax rate, and other financial measures (collectively, the “non-GAAP financial measures”) which are not measurements of f
Slide 3: Agenda
Agenda CEO comments Financial performance Closing remarks Q&A 3
Slide 4: CEO Perspective
Jim Zallie President and CEO Q3 2024 Earnings Call CEO Perspective 4
Slide 5: Strong third quarter profitability driven by volume growth and operational excellence
Strong third quarter profitability driven by volume growth and operational excellence Q3 Net Sales Q3 Adjusted Operating Income* $ in millions Absent S. Korea $ in millions -4% -8% $2,033 $1,870 +29% $282 $219 Q3 2023 Q3 2024 Q3 2023 Q3 2024 YTD Net $6,239 $5,630 YTD Adj $766 $768 Sales Op Income *S
Slide 6: Third quarter net sales volume growth highlights
Third quarter net sales volume growth highlights Net Sales Highlights Volume • Moderate market growth driving volumes • Strength in savory, packaged meals, and frozen Texture & Healthful Solutions +11% prepared foods • Differentiated products growing fastest • Brewery in Brazil Food & Industrial Ing
Slide 7: Progress against our strategic pillars in Q3
Progress against our strategic pillars in Q3 Business Growth Cost Competitiveness Purpose and People through Operational Excellence • Engagements w/customers +27% • Cost2Compete tracking well • Named a finalist for the National • Texture & Healthful Solutions against our target of $50M in Safety Cou
Slide 8: Strong gross margin improvement fueled by increased volume and efficiency improvements
Strong gross margin improvement fueled by increased volume and efficiency improvements Gross margin +490 bps 25.6% 20.7% • Integrated approach to pricing, raw material procurement and hedging • Improved fixed cost absorption • Maturing procurement capabilities • Disciplined approach to manufacturing
Slide 9: Texture & Healthful Solutions 11% sales volume growth led by highly differentiated solutions
Texture & Healthful Solutions 11% sales volume growth led by highly differentiated solutions To be recognized as the go-to provider of Texture & Healthful Solutions that make healthy taste better Solutions encompass our most Customer benefits: • Accelerated innovation development differentiated ingr
Slide 10: Financial Update
James Gray Executive Vice President and CFO Q3 2024 Earnings Call Financial Update 10
Slide 11: Q3 2024: Income statement highlights
Q3 2024: Income statement highlights $ in millions, unless noted Q3 2023 Q3 2024 Change Net Sales $2,033 $1,870 -8% Gross Profit $421 $479 14% Gross Profit Margin 20.7% 25.6% 490 bps Reported Operating Income $213 $268 26% Reported Diluted EPS $2.36 $2.83 $0.47/share Adjusted Operating Income* $219
Slide 12: Q3: Net sales bridge
Q3: Net sales bridge $ in millions -8% $86 $2,033 $(20) $(79) $1,870 $(150) Q3 2023 FX Volume South Korea Price/Mix Q3 2024 Volume Totals may not sum due to rounding 12
Slide 13: Q3: Net sales variance by segment
Q3: Net sales variance by segment Foreign Net Sales Volume Price Mix Exchange Change Texture & Healthful Solutions 1% 11% -12% 0% Food & Industrial Ingredients - -4% 1% -3% -6% LATAM Food & Industrial Ingredients - -1% 1% -9% -9% US/CAN Ingredion -1% 0% -7% -8% Excluding South Korea -1% 4% -7% -4% T
Slide 14: Texture & Healthful Solutions; Food & Industrial Ingredients - LATAM
Texture & Healthful Food & Industrial Solutions Ingredients - LATAM Absent FX Absent FX Q3 Net Sales impacts Q3 Net Sales impacts -1% -2% $ in millions -6% 0% $658 $620 $599 $600 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 Op Income $ $86 $96 Q3 Op Income $ $104 $131 Q3 Op Inc Margin 14.4% 16.0% Q3 Op Inc Ma
Slide 15: Food & Industrial Ingredients - US/CAN; All Other
Food & Industrial Ingredients - US/CAN All Other Q3 Net Sales Absent FX impacts Q3 Net Sales* Absent S. Korea and FX impacts $ in millions -8% $ in millions +5% -9% $599 $548 -42% $177 $102 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 Op Income $ $79 $99 Q3 Op Income $ $(1) $(4) Q3 Op Inc Margin 13.2% 18.1% Q
Slide 16: Q3: EPS bridge
Q3: EPS bridge Amounts are dollars/share 2023 2024 Reported Diluted EPS $ 2.36 $2.83 Restructuring/impairment costs 0.10 0.16 Net gain on sale of business --- (0.21) Tax items and other matters (0.13) 0.27 Adjusted Diluted EPS* $2.33 $3.05 Total change in adjusted diluted EPS $0.72 Total operating i
Slide 17: YTD 2024: Income statement highlights
YTD 2024: Income statement highlights $ in millions, unless noted YTD 2023 YTD 2024 Change Net Sales $6,239 $5,630 -10% Gross Profit $1,349 $1,342 -1% Gross Profit Margin 21.6% 23.8% 220 bps Reported Operating Income $755 $721 -5% Reported Diluted EPS $7.63 $8.29 $0.66/share Adjusted Operating Incom
Slide 18: YTD: EPS bridge
YTD: EPS bridge Amounts are dollars/share 2023 2024 Reported Diluted EPS $ 7.63 $8.29 Restructuring/impairment costs 0.10 0.55 Net gain on sale of business --- (1.29) Tax items and other matters (0.28) 0.47 Adjusted Diluted EPS* $7.45 $8.02 Total change in adjusted diluted EPS $0.57 Total operating
Slide 19: Year to date cash from operations and capital allocation
Year to date cash from operations and capital allocation $ millions YTD 2024 Year End September YTD Cash 2023 2024 Impact Net income $557 A/R 1,279 1,173 106 Depreciation and amortization $160 Inventory 1,450 1,234 216 Working capital $248 AP (1,324) (1,156) (168) Other Items 94 Other $35 Total chan
Slide 20: Full year 2024 outlook
Full year 2024 outlook Net sales Down mid-single-digits Adjusted operating income* Up high single-digits Financing costs $40 – $50 million Corporate costs Flat to last year Adjusted effective tax rate* 26.5% – 27.5% Adjusted EPS* $10.35 to $10.65 Diluted weighted avg. shares outstanding 66.0 – 67.0
Slide 21: Record Q3 performance with strong momentum into year end
Record Q3 performance with strong momentum into year end • Sales volume growth • Operational excellence • Cost2Compete savings • Network optimization benefits • Exceptionally strong cash flow from operations— supplemented by short-term working capital benefit • Continuing to provide cash to sharehol
Slide 22: Texture Innovation Day
Texture Innovation Day Be recognized as the go-to provider for texture and healthful solutions that make healthy taste better November 14, 2024 | Bridgewater, NJ • Strategic vision for Texture & Healthful Solutions • Insights on latest texture trends and technologies • Gain unique perspectives from
Slide 23: Appendix
Appendix NN Ingredion Be what's next.
Slide 24: 2024 Full year segment operating income outlook
2024 Full year segment operating income outlook Texture & Healthful Solutions Food & Industrial Ingredients - LATAM 2023 Net Sales (unaudited) $2.4 - $2.5B 2023 Net Sales (unaudited) $2.5 - $2.6B Flat to up low 2024 Net Sales Outlook Flat 2024 Net Sales Outlook single-digits 2023 Segment Operating I
Slide 25: Non-GAAP Information
Non-GAAP Information To supplement the consolidated financial results prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), non-GAAP historical financial measures are used, which exclude certain GAAP items such as restructuring and resegmentation costs, net gain on sale
Slide 26: Reconciliation of GAAP net income and diluted EPS to non-GAAP adjusted
Reconciliation of GAAP net income and diluted earnings per share (EPS) to non-GAAP adjusted net income and adjusted diluted EPS Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 (in millions) Diluted
Slide 27: Reconciliation of GAAP net income and diluted EPS (continued)
Reconciliation of GAAP net income and diluted earnings per share (EPS) to non-GAAP adjusted net income and adjusted diluted EPS (continued) Notes i. During the three and nine months ended September 30, 2024, there were pre-tax restructuring charges of $6 million and $12 million primarily related to
Slide 28: Reconciliation of GAAP operating income to non-GAAP adjusted operating income
Reconciliation of GAAP operating income to non-GAAP adjusted operating income Three Months Ended Nine Months Ended September 30, September 30, ($ in millions, pre-tax) 2024 2023 2024 2023 Operating income $ 268 $ 213 $ 721 $ 755 Adjustments: Restructuring and resegmentation costs (i) 6 — 12 — Other
Slide 29: Reconciliation of GAAP effective income tax rate to non-GAAP adjusted
Reconciliation of GAAP effective income tax rate to non-GAAP adjusted effective income tax rate Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024 Income before Provision for Effective Income before Provision for Effective Income Taxes Income Taxes Income Income Taxes Income
Slide 30: Reconciliation of GAAP effective income tax rate (continued)
Reconciliation of GAAP effective income tax rate to non-GAAP adjusted effective income tax rate (continued) Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Income before Provision for Effective Income before Provision for Effective Income Taxes Income Taxes Income Income T
Slide 31: Reconciliation of expected GAAP diluted EPS to expected adjusted EPS
Reconciliation of expected GAAP diluted earnings per share to expected non-GAAP adjusted diluted earnings per share Expected EPS Range for Full-Year 2024 Low End of High End of Guidance Guidance GAAP EPS $ 10.60 $ 10.90 Adjustments: Restructuring and resegmentation costs (i) 0.15 0.15 Net gain on sa
Slide 32: Reconciliation of expected GAAP effective tax rate to adjusted rate
Reconciliation of expected reported GAAP effective tax rate to expected non-GAAP adjusted effective income tax rate Expected Effective Income Tax Rate Range for Full-Year 2024 Low End of Guidance High End of Guidance GAAP ETR 28.0 % 29.0 % Adjustments: Restructuring and resegmentation costs (i) —% —