Ingersoll Rand Inc. · NYSE:IR

Ingersoll Rand — Gardner Denver — Q3 2018 Earnings Presentation

21 slides from Ingersoll Rand's earnings presentation, Oct 26, 2018

1. Slide 1: Gardner Denver Q3 2018 Earnings Presentation

   Gardner Denver Q3 2018 Earnings Presentation October 26, 2018

2. Slide 2: Replay Information

   Replay Information ▪ Dial toll-free: +1.877.344.7529 ▪ International: +1.412.317.0088 ▪ Conference ID: #10125336 ▪ 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 ▪ Q3 2018 Financial Performance ▪ Segment Highlights ▪ Full Year 2018 Guidance & Summary ▪ Q&A 4

5. Slide 5: Q3 Highlights

   Q3 Highlights Solid performance across all three segments and continued execution of our value-creation strategy • Revenue of $689M, up 6% versus prior year Strong • Adjusted EBITDA of $182M, up 11% versus prior year Execution • Adj EBITDA margin of 26.4%, an improvement of 100 basis points versus P

6. Slide 6: Our Strategy

   Our Strategy Deploy Talent Expand Margins Accelerate Growth Allocate Capital Effectively 6

7. Slide 7: Q3 Financial Performance

   Q3 Financial Performance

8. Slide 8: Q3 2018 Financial Performance

   Q3 2018 Financial Performance (Dollars in millions, excl. EPS) Revenue Adjusted EBITDA Adjusted EPS1 Up 6% Up 11% Up 20% Margin Up 100 bps $182 $689 $0.49 $650 $165 $0.41 25.4% 26.4% Margin Margin Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Financial Performance Reinforcing Our Value-Creation St

9. Slide 9: Q3 2018 Financial Performance

   Q3 2018 Financial Performance (Dollars in millions) Working Capital Free Cash Flow1 Leverage (Op. Working Capital as % of LTM Sales) (Net Debt / LTM Adjusted EBITDA) Improved 560 bps Up $38M Improved 0.2x Sequentially $93 4.2x 30.8% $54 2.4x 25.2% 2.2x Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q1'17 Q2'18 Q3'

10. Slide 10: Q3 2018 Segment Performance

    Q3 2018 Segment Performance

11. Slide 11: Industrials Segment – Q3 Highlights

    Industrials Segment – Q3 Highlights (Dollars in millions) As Prior YOY Ex-FX YOY Reported Year Change Change Revenue $320 $288 11.0% 12.5% Adjusted EBITDA $72 $63 14.3% 15.4% Adjusted EBITDA Margin 22.5% 21.9% 60 bps Innovation in Action Highlights:  Orders up 7% as reported; up 8% ex-FX  Revenue

12. Slide 12: Energy Segment – Q3 Highlights

    Energy Segment – Q3 Highlights (Dollars in millions) As Prior YOY Ex-FX YOY Reported Year Change Change Revenue $299 $302 (0.9)% 0.2% Adjusted EBITDA $95 $99 (3.8)% (2.7)% Adjusted EBITDA Margin 31.8% 32.7% (90) bps Innovation in Action Highlights:  Orders up 4% as reported; up 5% ex-FX  Upstream

13. Slide 13: Medical Segment – Q3 Highlights

    Medical Segment – Q3 Highlights (Dollars in millions) As Prior YOY Ex-FX YOY Reported Year Change Change Revenue $71 $60 17.9% 18.9% Adjusted EBITDA $21 $17 22.0% 23.2% Adjusted EBITDA Margin 29.1% 28.1% 100 bps Innovation in Action Highlights:  Orders up 20% as reported; up 21% ex-FX  Revenue up

14. Slide 14: 2018 Guidance & Summary

    2018 Guidance & Summary

15. Slide 15: 2018 Guidance

    2018 Guidance ▪ Adjusted EBITDA $690M to $705M ▪ Capital Expenditures (reduced) $50M to $60M (from $60M to $70M) ▪ Tax Rate 26% to 28% ▪ Year End Net Debt Leverage ~2.0x ▪ Average Shares Outstanding1 ~209M 1 Represents expectation of average shares outstanding for the balance of the year based on th

16. Slide 16: Summary

    Summary  Strong Q3’18 performance with balanced execution across each of the segments  6% overall revenue growth with double-digit growth in Industrials and Medical segments  Positive orders momentum across all three segments, including upstream Energy growth of 9%  26.4% adjusted EBITDA margin

17. Slide 17: Q&A

    Q&A

18. Slide 18: Appendix

    Appendix

19. Slide 19: Reconciliation of Net Income 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 19

20. Slide 20: Reconciliation of Net Income to Adjusted EBITDA, Adjusted Net Income and Free Cash Flow

    Reconciliation of Net Income/(Loss) to Adjusted EBITDA and Adjusted Net Income and CFOA to Free Cash Flow 20

21. Slide 21: Reconciliation of Segment Adjusted EBITDA to Income Before Income Taxes

    Reconciliation of Segment Adjusted EBITDA to Income/(Loss) Before Income Taxes 21

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