Slide 1: Pavement Technologies
Pavement Technologies April 16, 2020 Mike Smith, EVP & President, Performance Chemicals Andrew Crow, VP, Pavement Technologies 1
Slide 2: Disclaimer
Disclaimer: This presentation contains “forward-looking statements” within the meaning of Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such forward looking statements generally include the words “may,” “could,” “should,” “believes,” “plans,”
Slide 3: Strong, Experienced Business Leadership
Strong, Experienced Business Leadership Mike Smith Andrew Crow Executive Vice President Vice President, and President, Pavement Technologies Performance Chemicals ▪ Joined Ingevity in 2016 ▪ Joined Ingevity in 1991 ▪ 23 years at FMC Corporation, positions ▪ 28 Years of pavement industry experience,
Slide 4: Company Overview
Company Overview Performance Performance Chemicals Materials Carbon Pavement Oilfield Industrial Engineered Technologies Technologies Technologies Specialties Polymers 2019 Sales $491 million $183 million $111 million $386 million $122 million(1) 2019 Segment $213 million $183 million EBITDA #1 in P
Slide 5: Pine Chemicals Value Chain
Pine Chemicals Value Chain Enhancing value through derivatization Derivatives Intermediates End Uses Renewable forests Tall Oil Fatty Acid Specialty ▪ Pavement ▪ Oilfield Derivatization ▪ Lubricants Tall Oil Rosin Biorefinery Specialty ▪ Adhesives ▪ Inks Biorefinery ▪ Paper size Derivatization ▪ Rub
Slide 6: Well-positioned for value creation
Pavement Technologies Well-positioned for value creation Technology leader in asphalt pavement additives Deep customer relationships based on technical expertise and custom solutions 2-3x GDP business driven by technology adoption and infrastructure spending Significant opportunity for increased war
Slide 7: Business Overview – Pavement Technologies
Business Overview – Pavement Technologies Business Description Business Unit Sales ($M) Asphalt additives derived from tall oil fatty acid, lignin, amines, surfactants and polymers 200 CAGR +8% ▪ Evotherm® technologies: additives for road 150 construction in the fast-growing category of 100 warm mix
Slide 8: Composition of a Road
Composition of a Road Our additives deliver significant performance and value 1% + 5% + 94% = Higher performing, more sustainable road Ingevity Asphalt Aggregate Additive ▪ Our products are used at low dosages but deliver an ▪ Faster, easier impressive impact on total road performance and constructi
Slide 9: Products for Every Layer of the Road
Products for Every Layer of the Road Adding value from top to bottom Maintain the road: Ralumac® Micro surfacing system Build the road: Indulin® Asphalt emulsifiers and additives Onyx® Specialty seal coat Recycling Technology Morlife® Reconstruct the road: Adhesion promoters Indulin® Asphalt emulsif
Slide 10: Evotherm Warm Mix Asphalt Technology
Evotherm Warm Mix Asphalt Technology Delivering a wide range of quantifiable benefits(1) ▪ Reduces emissions 40-50% by lowering paving temperatures 50-100 ºF ▪ Lowers fuel use by 30%-40% ▪ Allows 20-40% higher recycle contents ▪ Creates longer-lasting, higher performing roads ▪ Extends paving season
Slide 11: Pavement Preservation
Pavement Preservation Extending pavement life, reducing costs and maintaining safe roads ▪ Ultra-thin protective layers paved on top of roads ▪ Water-based asphalt emulsion technologies paved at ambient temperatures ▪ Reduces environmental emissions and improves worker safety ▪ Customized solutions
Slide 12: Pavement Reconstruction
Pavement Reconstruction Cold Recycling Injection of asphalt emulsion with Ingevity additives ▪ Reduces life cycle cost of pavement by milling up and reusing the existing roadway ▪ 100% recycled asphalt pavement ▪ Lowest environmental emissions; dramatic fuel reduction from reducing delivery trucks ▪
Slide 13: Pavement Technologies Strategies
Pavement Technologies Strategies Market ▪ Create demand by marketing technologies to DOTs Development ▪ Partner with contractors for technology acceptance ▪ Leverage technical depth to ensure new product success ▪ Continue to drive Evotherm warm mix asphalt adoption ▪ Accelerate growth and evolution
Slide 14: Pavement Technologies Strategies
Pavement Technologies Strategies Market ▪ Create demand by marketing technologies to DOTs Development ▪ Partner with contractors for technology acceptance ▪ Leverage technical depth to ensure new product success ▪ Continue to drive Evotherm warm mix asphalt adoption ▪ Accelerate growth and evolution
Slide 15: Market Development Strategy
Market Development Strategy Providing value throughout the chain Ingevity Technical Marketing Asphalt Paving Departments of refineries contractors transportation Deep market knowledge · Technical expertise · Innovative solutions 15
Slide 16: Evotherm Warm-Mix Value Proposition
Evotherm Warm-Mix Value Proposition Significant, quantifiable benefits for road construction Emissions reduction Value Worker safety created per $2000 ▪ Total Evotherm value delivered lane mile Recycling: milled asphalt, tires is often double the input cost Materials savings ▪ Numerous benefits can
Slide 17: Pavement Technologies Strategies
Pavement Technologies Strategies Market ▪ Create demand by marketing technologies to DOTs Development ▪ Partner with contractors for technology acceptance ▪ Leverage technical depth to ensure new product success ▪ Continue to drive Evotherm warm mix asphalt adoption ▪ Accelerate growth and evolution
Slide 18: Innovation Strategy
Innovation Strategy Accelerating speed and scale Rapid product development cycle ▪ Chemistry customized around regional customer needs ▪ Low capital requirements for production with minimal risk for new chemistries ▪ Quick progression from lab scale to plant production (often within a month) ▪ Drive
Slide 19: Innovative Technology Adoption: Evotherm
Innovative Technology Adoption Case Study: Evotherm Evotherm warm-mix asphalt technology was utilized for emergency reconstruction in Flagler County, FL, after Hurricane Matthew. ▪ Only main evacuation route for residents had been completely destroyed ▪ Governor wanted road opened again in 30 days i
Slide 20: Innovative Technology Adoption: Cold In-Place Recycling
Innovative Technology Adoption Case Study: Cold In-Place Recycling Cold in-place recycling used near Roswell, NM instead of normal hot-mix ▪ Reopened to traffic 40% faster than traditional construction ▪ In-place recycling allowed a reduction of 1,500 truckloads of materials ▪ 50% lower overall cost
Slide 21: Pavement Technologies Strategies
Pavement Technologies Strategies Market ▪ Create demand by marketing technologies to DOTs Development ▪ Partner with contractors for technology acceptance ▪ Leverage technical depth to ensure new product success ▪ Continue to drive Evotherm warm mix asphalt adoption ▪ Accelerate growth and evolution
Slide 22: Geographic Expansion Strategy
Geographic Expansion Strategy Technical laboratories support key global markets Lille, France Europe-Middle East-Africa Charleston, SC & Tulsa, OK Shanghai China North & South America Asia Pacific Chennai, India South Asia ▪ Industry experts provide support with local market knowledge ▪ Develop rela
Slide 23: Geographic Expansion Strategy: Case Studies
Geographic Expansion Strategy Case Studies Onyx: Changsha, China Airport ▪ Runway was cracking, permeability issues ▪ Safety was starting to be compromised ▪ Onyx allowed fast, nighttime construction and reopening for morning flights Evotherm: Remote Brazil near Amazon rainforest ▪ Lowered productio
Slide 24: Balanced Global Growth
Balanced Global Growth North America Sales ($M) Rest of World Sales ($M) 160 50 7.7% CAGR 140 45 8.2% CAGR 120 40 100 35 80 30 60 25 40 20 20 15 0 10 ▪ Strong, stable long-term growth in ▪ Rest of world results variable but North America driven by accelerating clear growth trend over time with techn
Slide 25: Well-Positioned for Value Creation
Pavement Technologies Well-Positioned for Value Creation Technology leader in asphalt pavement additives Deep customer relationships based on technical expertise and custom solutions 2-3x GDP business driven by technology adoption and infrastructure spending Significant opportunity for increased war