Ingersoll Rand Inc. · NYSE:IR

Ingersoll Rand — Gardner Denver — Q1 2018 Earnings Presentation

21 slides from Ingersoll Rand's earnings presentation, Apr 27, 2018

1. Slide 1: Gardner Denver Q1 2018 Earnings Presentation

   Gardner Denver Q1 2018 Earnings Presentation April 27, 2018

2. Slide 2: Replay Information

   Replay Information ▪ Dial toll-free: +1.877.344.7529 ▪ International: +1.412.317.0088 ▪ Conference ID: #10119481 ▪ Log on to: http://investors.gardnerdenver.com 2

3. 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.

4. Slide 4: Agenda

   Agenda ▪ Highlights ▪ Q1 2018 Financial Performance ▪ Segment Highlights ▪ Full Year 2018 Guidance & Summary ▪ Q&A 4

5. Slide 5: Q1 2018 Highlights

   Q1 2018 Highlights Solid performance across all three segments and continued execution of our value-creation strategy • Revenue of $620M, up 29% versus prior year Strong • Adjusted EBITDA of $148M, up 61% versus the prior year Execution • Adjusted EBITDA margin of 23.9%, an improvement of 480 basis

6. Slide 6: Our Strategy

   Our Strategy Strong Foundation, Clear Strategy, Committed Leadership  Creating a performance driven culture with highly engaged employees Deploy Creating a great place to work – engagement initiative driving improvement – Talent – Acting like owners – At IPO, awarded 5.5M shares in equity (~$170M c

7. Slide 7: Q1 Financial Performance

   Q1 Financial Performance

8. Slide 8: Q1 2018 Financial Performance

   Q1 2018 Financial Performance ($M, excl. EPS) Revenue Adjusted EBITDA1 Adjusted EPS1,2 $0.38 $148 $620 $482 $92 23.9% Margin $0.13 19.1% Margin Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Up 29% Up 61% Up 192% Margin Up 480 bps Q1 2018 Results Reinforce Investment Thesis 1 Adjusted EBITDA and Ad

9. Slide 9: Q1 2018 Financial Performance

   Q1 2018 Financial Performance ($M) Working Capital Free Cash Flow1 Leverage2 (Op. Working Capital as % of LTM Sales) (Net Debt / LTM Adjusted EBITDA) 4.2x 30.7% $50 29.2% 2.9x 2.8x ($19) Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1'17 Q4'17 Q1'18 Pro-forma IPO Improved 150 bps Up $69M Improved 1.4x Since IPO

10. Slide 10: Q1 2018 Segment Performance

    Q1 2018 Segment Performance

11. Slide 11: Industrials Segment – Q1 Highlights

    Industrials Segment – Q1 Highlights ($M) As Prior YOY Ex-FX YOY Reported Year Change Change Revenue $316.9 $248.0 27.8% 18.6% Adjusted EBITDA $66.8 $47.2 41.5% 29.7% Adjusted EBITDA Margin 21.1% 19.0% 210 bps Innovation in Action Highlights:  Orders up 18% as reported; up 10% ex-FX  Revenue up 19%

12. Slide 12: Energy Segment – Q1 Highlights

    Energy Segment – Q1 Highlights ($M) As Prior YOY Ex-FX YOY Reported Year Change Change Revenue $242.2 $178.3 35.8% 32.6% Adjusted EBITDA $68.0 $38.5 76.6% 74.6% Adjusted EBITDA Margin 28.1% 21.6% 650 bps Innovation in Action Highlights:  Orders up 19% as reported; up 16% ex-FX  Revenue up 33% ex-F

13. Slide 13: Medical Segment – Q1 Highlights

    Medical Segment – Q1 Highlights ($M) As Prior YOY Ex-FX YOY Reported Year Change Change Revenue $60.5 $55.4 9.2% 1.3% Adjusted EBITDA $15.9 $14.6 8.9% (0.3%) Adjusted EBITDA Margin 26.3% 26.4% (10 bps) Innovation in Action Highlights:  Orders up 19% as reported; up 11% ex-FX  Revenue up 1% ex-FX a

14. Slide 14: 2018 Guidance & Summary

    2018 Guidance & Summary

15. Slide 15: 2018 Guidance

    2018 Guidance ▪ Adjusted EBITDA $685M to $705M ▪ Capital Expenditures $65M to $75M ▪ Tax Rate 26% to 28% ▪ Year End Net Debt Leverage1 ~2.1-2.3x ▪ Average Shares Outstanding2 ~210M ¹ Excluding the impact of any potential future acquisitions 2 Represents the full year computation of weighted average

16. Slide 16: Summary

    Summary  Strong broad-based start to 2018 with continued growth and margin expansion  29% revenue growth with strong double-digit growth in Industrials and Energy; organic growth in Medical  Double-digit orders growth across all three segments  480 bps of Adjusted EBITDA margin expansion year-ov

17. Slide 17: Q&A

    Q&A

18. Slide 18: Appendix

    Appendix

19. Slide 19: Reconciliation of Net Income/(Loss) 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

20. Slide 20: Reconciliation of Net Income/(Loss) to Adjusted EBITDA and CFOA to 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

21. Slide 21: Reconciliation of Segment Adjusted EBITDA to Income/(Loss) 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 Month period ended March 31, 2018 2017 Revenue

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