Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — Q1 2023 Earnings Presentation
30 slides from Ingersoll Rand's earnings presentation, May 4, 2023
Slide 1: Q1 2023 Earnings Presentation
Q1 2023 Earnings Presentation
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: Leveraging IRX for Continued Execution
Leveraging IRX for Continued Execution We are a 1 IRX enabling double-digit Adjusted EBITDA1 and Premier industrial Adjusted EPS1 growth, as well as strong free cash flow generation in 2023 company with iconic brands and Compounding Annual Results market-leading 2 Delivering on Investor Day commitme
Slide 4: Our Economic Growth Engine
Our Economic Growth Engine Continues to Deliver Compounding Annual Results High Performance Premier Growth Megatrends Sustainability Digitization Quality of Life Execution Process Compounder Ownership Double Digit Organic Mindset Earnings Growth Growth Product Demand IIoT and Service Enablers Genera
Slide 5: Driving Growth Through Demand Generation Excellence (DGX)
Global Megatrends Driving Growth Through Demand Generation Excellence (DGX) Six DGX Examples, Out of Hundreds of Initiatives Launched During the First Quarter of 2023 Mega Trends Where and How We Win Our Achievements • $125K+ OPPORTUNITY won from a fuel cell landing page within first • Account-based
Slide 6: Leveraging IRX to Enable Successful M&A Integration
Leveraging IRX to Enable Successful M&A Integration Example: SEEPEX - Accelerating Margin Expansion while Leveraging Technology Across Multiple Dimensions to Drive Organic Growth SEEPEX Adj. EBITDA Margin Expansion …While Accelerating Organic Growth Across 3 Levers • ~$480M purchase price acquisitio
Slide 7: On Track to Deliver Our Inorganic Growth Commitment
On Track to Deliver Our Inorganic Growth Commitment Closed M&A Signed M&A Funnel Update Trace Analytics Anhui Gaopeng Vacuum Equipment Co., LTD • Description: Leading provider of lab-based testing and • Description: Well-established dry screw vacuum >5x sampling for compressed air technologies pump
Slide 8: Transformed Portfolio for Resiliency
Transformed Portfolio for Resiliency …with Large Recurring and …with Proven Ability to be …and Still Have Multiple Highly Profitable Aftermarket Agile and Drive Performance Levers to Outpace Market ~35% 2020: Global Pandemic DGX: Continue to find Growth Aftermarket as a % of Total Revenue • Expanded
Slide 9: Accelerated our Sustainability Efforts
Accelerated our Sustainability Efforts By leveraging IRX, we achieved: Placement on DJSI World and DJSI North America Indices (Q4 2022) An upgrade to MSCI AA rating (Q3 2022) New: Low Risk rating by Morningstar Sustainalytics1 (Q1 2023) 1 As of April 2023, Ingersoll Rand received an ESG Risk R
Slide 10: Q1 2023 Highlights
IRX is our Competitive Differentiator Q1 2023 Highlights1 Continued momentum • Organic orders: Up 8% YoY Orders/Revenue • Organic revenue2: Up 20% YoY • Q1’23 ending backlog up ~15% YoY and ~10% QoQ • Book to Bill of 1.09x $400M with margin of 24.6% Adj. EBITDA2 • Up $97M YoY, an increase of 32% • 1
Slide 11: Q1 2023 vs. Q1 2022 Financial Performance
Q1 2023 vs. Q1 2022 Financial Performance ($M, Excluding EPS) • Adj. EBITDA1 includes ~$15M of FX headwinds as compared to prior year • Adj. Diluted EPS1,2 growth of Book to Bill of 1.09x 33% Backlog up ~15% YoY and ~10% QoQ 11 1 Non-GAAP measure (definitions and/or reconciliations in appendix). 2 A
Slide 12: Q1 2023 Financial Performance
Q1 2023 Financial Performance ($M, Excluding Leverage) Liquidity & Leverage • Upgraded by S&P to investment grade rating of BBB- and affirmed a positive outlook indicating potential future upgrades • Total available liquidity of $2.2B including: • Cash and cash equivalents: $1.1B • Available Revolvi
Slide 13: Industrial Technologies and Services
Industrial Technologies and Services Broad Range of Compressor, Vacuum and Blower Solutions as well as Industrial Technologies Including Power Tools and Lifting Equipment Q1 2023 vs. Q1 2022 ($M) Q1 2023 vs. Q1 2022 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆
Slide 14: Precision and Science Technologies
Precision and Science Technologies Highly Specialized Fluid Management Solutions Including Precision Liquid and Gas Pumps and Niche Compression Technologies Q1 2023 vs. Q1 2022 ($M) Q1 2023 vs. Q1 2022 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆ Revenue $312.
Slide 15: Raising 2023 Guidance
Raising 2023 Guidance1 Key Metrics2 Initial Guidance as of 2/21/23 Revised Guidance as of 5/4/23 Change at Midpoint Full Year 2023 Assumptions Revenue - Total Ingersoll Rand 7-9% 10-12% +300 bps • 2023 incremental margins of 35-40% Ingersoll Rand (Organic)3 3-5% 6-8% +300 bps • Interest Expense: ~$1
Slide 16: Key Takeaways
Continued robust performance in Q1 2023 • Delivering record results while navigating ongoing macro challenges 01 • Ongoing backlog momentum provides confidence in updated guidance • Prepared and nimble in the event of a downturn Key Takeaways Continuing to differentiate Ingersoll Rand as an investme
Slide 17: Appendix
g é £ 2 gs rom g S 5 2 & qj $ IX Append IR. Ingersoll Rand.
Slide 18: Non-U.S. GAAP Measures of Financial Performance
Non-U.S. GAAP Measures of Financial Performance In addition to consolidated GAAP financial measures, Ingersoll Rand reviews various non-GAAP financial measures, including “Organic Revenue Growth,” “Adjusted EBITDA,” “Adjusted Net Income,” “Adjusted Diluted EPS” and “Free Cash Flow.” Ingersoll Rand b
Slide 19: Q1 2023 Financial Performance – As Reported
Q1 2023 Financial Performance – As Reported ($M, excl. EPS) 19 1 Net Income as reported defined as Net Income Attributable to Ingersoll Rand Inc. 2 Diluted EPS defined as (Net Income Attributable to Ingersoll Rand Inc.) / (Diluted Average Shares Outstanding).
Slide 20: Adjusted Financial Information
Adjusted Financial Information 20
Slide 21: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income 21
Slide 22: 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 22
Slide 23: Reconciliation of Net Income to Adjusted Earnings per Share
Reconciliation of Net Income to Adjusted Earnings per Share 23
Slide 24: 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 Flows from Operating Activities from Continuing Operations to Free Cash Flow 24
Slide 25: Orders & Revenue by Segment and Reconciliation of Segment Adjusted EBITDA
Orders & Revenue by Segment and Reconciliation of Segment Adjusted EBITDA to Net Income 25
Slide 26: Orders and Revenue Growth by Segment
Orders and Revenue Growth by Segment1 26
Slide 27: Supplemental Combined Financial Information by Segment
Supplemental Combined Financial Information by Segment 27
Slide 28: Reconciliation of GAAP Revenue to Supplemental Adjusted Revenue and Adjusted EBITDA
Reconciliation of GAAP Revenue to Supplemental Adjusted Revenue and Adjusted EBITDA to Supplemental Adjusted EBITDA by Segment and for the Company 28
Slide 29: Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA and Supplemental Adjusted EBITDA
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA and Supplemental Adjusted EBITDA 29
Slide 30: GDI Industrials Segment Results
GDI Industrials Segment Results 30