Ingevity Corporation · NYSE:NGVT
Ingevity — Investor Day (February 2018)
86 slides from Ingevity's investor day presentation, Feb 21, 2018
Slide 1: Investor Day
Investor Day New York City February 21, 2018 1
Slide 2: Disclaimer
Disclaimer This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements generally include the words “may,” “could,” “should,” “believes,” “plans,” “intends,” “targets,” “will,” “expects,” “suggests
Slide 3: Our Leadership Team
Our Leadership Team Michael Wilson John Fortson Kathy Burgeson President and CEO EVP, CFO and Treasurer EVP, General Counsel, Secretary Mike Smith Ed Woodcock Cindy Cartmell Burns EVP and President, Performance Marty Heyne EVP and President, Performance SVP, Human Chemicals, Strategy and Business SV
Slide 4: Agenda
Agenda Driving Ingevity to the Next Level 1:15 Michael Wilson Building Superior Performance in 1:45 Performance Chemicals Mike Smith Capitalizing on Global Growth and New 2:15 Innovation in Performance Materials Ed Woodcock Deploying Capital to Maximize Returns and 2:45 Shareholder Value Joh
Slide 5: Driving Ingevity to the Next Level
Driving Ingevity to the Next Level Michael Wilson President and CEO 5
Slide 6: A History of Growth and Innovation
A History of Growth and Innovation 6
Slide 7: A History of Growth and Innovation
A History of Growth and Innovation 7
Slide 8: A New Company
A New Company ™ingevity
Slide 9: Since the Spin
Since the Spin May 2016 Oct. 2016 Dec. 2016 Opened Restructured Began Innovation chemical trading on Center in operations the NYSE N. Charleston in Brazil Aug. 2017 June 2017 Jan. 2017 Began Named #1 Announced construction Spin-Off G-P pine chemicals of extrusion acquisition plant in Changshu Nov. 2
Slide 10: Delivering on Commitments in 2017
Delivering on Commitments in 2017 $M What We Said What We Did Status Revenue 930-950 972 Adjusted EBITDA(1) 215-225 243 Capex 60-65 53 Free Cash Flow(1) 80-90 122 Net Debt to 1.5 to 1.75x 1.2x Adjusted EBITDA(1) Revenue to double in 16% revenue growth, Performance 5-7 years; margins 40.6% EBITDA(1)
Slide 11: Top Quartile Performance Among Specialty Chemicals and Materials Companies
Top Quartile Performance Among Specialty Chemicals and Materials Companies % EBITDA Margin - LTM 9/30/17 Top ¼ >22.2%(2) 28.4% 27.9% 23.7% 22.9% 22.8% 20.8% 19.2% 18.8% 18.0% 12.8% Albemarle PQ Ingevity (Inc. Hexcel Eastman Cabot Kraton Celanese NewMarket HB Fuller Corporation GP) % ROIC - LTM 9/30/
Slide 12: Strong Shareholder Returns
Strong Shareholder Returns 200% 150% 100% 50% 0% (50%) NGVT S&P 600 DJ US Specialty Chemicals Total Shareholder Returns Since Spin (1) 2016 2017 Ingevity +162% +104% +28% S&P 600 +40% +26% +13% DJ US Specialty Chemicals +29% +11% +22% 12 Data Source: Bloomberg (1) Measured from 05/16/2016 to 12/31/2
Slide 13: Driving Superior Performance
Driving Superior Performance Long- Range Target Strategy Vision Purpose Identity 13
Slide 14: Leading Specialty Chemicals and Materials Company
Identity Leading Specialty Chemicals and Materials Company Creating high-value added Total Employment ~1,500 products from renewable raw materials Manufacturing Sites 7 Technical Centers 5 Sales Offices 10 Countries ~70 Charleston, S.C. Lille, France Covington, Va. Wujiang, China Shanghai, China Wic
Slide 15: Where We Compete
Identity Where We Compete Performance Performance Chemicals Materials Pavement Carbon Technologies Oilfield Technologies Industrial Specialties Technologies 2017 Sales $349 million $163 million $78 million $382 million 2017 Segment $142 million $101 million EBITDA (1) Market #1 or #2 in oil-based #1
Slide 16: Purify Protect Enhance
Purpose Purify Protect Enhance gallons of gasoline recovered percent reduction in CO2 miles of reflective traffic striping globally by our activated carbon emissions by using Evotherm® enhanced with WestRez® resins. every day. warm mix asphalt. gallons of water purified using days of extra corrosion
Slide 17: What We Aspire to Become
Vision What We Aspire to Become To be the recognized leader in our markets To be proud of where we work To be a positive influence in our communities 17
Slide 18: Industry-Leading Returns and Financial Strength
Vision Industry-Leading Returns and Financial Strength Specialty S&P 600 (1) Chemicals (2) Ingevity Revenue Growth 2.5 - 3x GDP ~GDP 2.5 – 3x GDP Adjusted EBITDA(3) ~14.0% ~20.0% 25 30+% Margins ROIC ~11.0% ~16.0% + 20% 2.5x Net 3.0x Net 2.0 – 2.5x Net Capital Structure Leverage Leverage Leverage So
Slide 19: Our Strategy for Realizing Our Vision
Strategy Our Strategy for Realizing Our Vision Capture value for shareholders by creating value for our customers Hong Kong-Zhuhai-Macau Bridge Anchor Drilling Fluid Protomatic 19
Slide 20: Our Strategy for Realizing Our Vision
Strategy Our Strategy for Realizing Our Vision Capture value for shareholders by creating value for our customers Expand our geographic reach New European Paving Customers Changshu, China Society for Petroleum Engineers Expo in Dubai 20
Slide 21: Our Strategy for Realizing Our Vision
Strategy Our Strategy for Realizing Our Vision Capture value for shareholders by creating value for our customers Expand our geographic reach Accelerate innovation North Charleston, S.C. Lille, France Shanghai, China 21
Slide 22: Our Strategy for Realizing Our Vision
Strategy Our Strategy for Realizing Our Vision Capture value for shareholders by creating value for our customers Pine Chemicals Business Expand our geographic reach Added scale Accelerate innovation Broadened technology and product platform Pursue strategic, value-creating Synergies >
Slide 23: Our Strategy for Realizing Our Vision
Strategy Our Strategy for Realizing Our Vision Capture value for shareholders by creating value for our customers cost reduction Expand our geographic reach Accelerate innovation Pursue strategic, value-creating bps margin improvement acquisitions in Performance Chemicals Drive continuous
Slide 24: Our Strategy for Realizing Our Vision
Strategy Our Strategy for Realizing Our Vision Capture value for shareholders by creating value for our customers bps margin accretion Expand our geographic reach since 2015 to 25% Accelerate innovation Pursue strategic, value-creating acquisitions generated in free cash flow(1) Drive cont
Slide 25: Long-Range Target
Long-Range Target Revenues ~$1.5 billion Target Adjusted 2022 EBITDA(1) ~$500 million Adjusted EBITDA(1) Margin >30% 25 (1) Please see appendices included at the end of this presentation for Ingevity's use of non-GAAP financial measures, definitions of those financial measures as well as the reconci
Slide 26: Building Superior Performance in Performance Chemicals
Building Superior Performance in Performance Chemicals Mike Smith EVP and President, Performance Chemicals 26
Slide 27: Segment Overview – Performance Chemicals
Segment Overview – Performance Chemicals Segment Description Segment EBITDA(1) ($M) & EBITDA Margin %(1) 180 17.7% 19.0% Specialty chemicals derived from co-products of 160 16.2% 139 14.5% the kraft pulping process, crude tall oil (CTO) 140 13.0% 14.0% and lignin 120 102 101 100 Pavement Technolog
Slide 28: Pine Chemicals Value Chain
Pine Chemicals Value Chain Enhanced value from intermediates and derivative products Intermediate Derivative Products Products Pavement preservation Evotherm (warm Renewable Forests Tall Oil mix asphalt) Fatty Acid Asphalt recycling Oil well service additives Oil production & downstream Bi
Slide 29: Performance Chemicals Businesses
Performance Chemicals Businesses Multiple paths to deliver growth and value Growth Relative Customer/Innovation Profile X GDP Margin Deep customer intimacy Pavement Numerous small-med size customers Technologies 2–3X High Customized solutions, global opportunities Innovation leadership Pri
Slide 30: Performance Chemicals
Performance Chemicals Strategy Continue strong growth in differentiated, high margin products and markets globally Improve margins in rosin-based products and TOFA Maximize value from Georgia-Pacific pine chemicals acquisition including capture of significant synergy opportunities Pursue tar
Slide 31: Georgia-Pacific Pine Chemicals Acquisition
Georgia-Pacific Pine Chemicals Acquisition Significant increase to sales, Segment EBITDA(1), and margins(1) Currently in regulatory review 2017 sales(2) of $108M and EBITDA(2) of $31M Complementary products, technology, global resources High confidence in ability to deliver operational syner
Slide 32: CTO Supply Position
CTO Supply Position Enhanced security with G-P supply agreement Pre-Closing WestRock 52 percent of supply under long-term Other agreement 52% 48% N.A. Pulp Producers Market prices established via 3rd party negotiations Post-Closing 68 percent of supply is secure under long term agreements 36%
Slide 33: Business Overview – Pavement Technologies
Business Overview – Pavement Technologies Business Description Business Unit Sales 170 3 yr CAGR +7.3% 163 Asphalt additives derived from tall oil fatty acid, 160 lignin, amines, surfactants and polymers 148 149 150 Pavement Preservation: emulsifiers for specialty 140 ultra-thin maintenance layers
Slide 34: Composition of a Road
Composition of a Road Our additives deliver big performance and value 94% + 5% + 1% = High Performing Road Faster, easier construction Cost reduction Longer-lasting roads Safer Aggregate Asphalt Ingevity Additive Ingevity Asphalt Plant Paving Contractor Government Additives Agencies Liquid A
Slide 35: Composition of a Road
Composition of a Road Adding value from top to bottom Maintain the Road: Preservation Ralumac Build the Road: Micro Surfacing System Construction Asphalt Emulsifiers & Additives Onyx Specialty Sealants Recycling Technology Morlife Adhesion Promoters Strong innovation pipeline addressing multiple cus
Slide 36: Pavement Preservation Value Proposition
Pavement Preservation Value Proposition Extending pavement life, reducing costs and maintaining safe road conditions Ambient temperature, water-based emulsions Reduces environmental emissions Customized solutions based on climate and geography Specialized technical support with global resour
Slide 37: Evotherm Warm Mix Value Proposition
Evotherm Warm Mix Value Proposition Significant, quantifiable benefits for road construction Value delivered is often 2X the Emissions Reduction level of input costs Value Worker Safety DOTs around the world Created per Lane Mile $2000 increasingly aware of warm Recycling: Asphalt, Tires mix per
Slide 38: Pavement Technologies Success Story
Pavement Technologies Success Story Imagine if paving a megabridge were safer and greener Chongqing Zhixiang Paving Evotherm® Warm Mix Technology Engineering Co. Ltd. Asphalt Technology 90 percent(1) reduction in volatile organic compound (VOC) emissions Significant reduction of smoke, odor and
Slide 39: Business Overview - Oilfield Technologies
Business Overview - Oilfield Technologies Business Description Business Unit Sales Specialty intermediates and TOFA used in Drilling, 140 127 Production and Transportation of Crude Oil 120 Emulsifiers for manufacture of oil-based muds 100 (38.5%) +32.8% Rheology modifiers and wetting agents for
Slide 40: Oilfield Industry Value Chain
Oilfield Industry Value Chain Enhancing and protecting oilfield production, delivery and performance Emulsifiers and Lubricants Corrosion Inhibitors Fuel Lubricity Additives Well Services, Production and Exploration & Production Stimulation Transportation Delivery Refining Downstream Consumer 40
Slide 41: Oilfield Technologies Industry and Strategies
Oilfield Technologies Industry and Strategies Value Proposition Business Strategies Ingevity’s emulsifier derivatives are Innovation: Introduce new products essential components of drilling targeting efficiency and performance muds for oil and gas production primarily in well service application
Slide 42: Oilfield Technologies Success Story
Oilfield Technologies Success Story Imagine if innovation during a downturn were the rule EnvaMul® Emulsifiers Rig site and laboratory collaboration with customers Enhanced drilling speed and distance, and less down time cleaning equipment Fewer chemicals used, saving time and money 42
Slide 43: Business Overview – Industrial Specialties
Business Overview – Industrial Specialties Business Description Business Unit Sales Industrial chemicals based on tall oil fatty acid, tall oil Industrial Specialties rosin, and lignin for the following applications: 600 527 (9.7%) 476 (16.0%) Tall Oil Rosin Tall Oil Fatty Acid 500 (4.4%) 400 382
Slide 44: Industrial Specialties Strategy
Industrial Specialties Strategy Deliver strong margin growth in each application Different approaches based on end-market dynamics Improve cost, manufacturing, and supply chain efficiency Drive strong global customer adoption of high margin, differentiated products in agricultural dispersants
Slide 45: Industrial Specialties Success Story
Industrial Specialties Success Story Imagine if manufacturing jet engines were less complicated Diacid® 1550 Bio-based Metalworking Fluid Additive Unique chemical protective barrier that inhibits corrosion More stable metalworking fluid formulations Reduced amount of emulsifier additives and c
Slide 46: Long-Range Target
Long-Range Target 2x GDP Growth in pavement, oilfield, agriculture and lubricants Performance Chemicals Target Mid-20s% 2022 segment EBITDA margins(1) Top quartile specialty chemicals franchise 46 (1) Please see appendices included at the end of this presentation for Ingevity's use of non-GAAP finan
Slide 47: Capitalizing on Global Growth and New Innovation in Performance Materials
Capitalizing on Global Growth and New Innovation in Performance Materials Ed Woodcock EVP and President, Performance Materials 47
Slide 48: Performance Materials
Performance Materials Strategy supports target of doubling revenues from 2015 Maintain global leadership in technical and Sales History ($M) ~2x application expertise and regulatory from 2015 advocacy $500 Invest to ensure capacity and supply to $400 meet growing global demand $300 Expand our
Slide 49: Segment Overview – Performance Materials
Segment Overview – Performance Materials Segment Description Segment EBITDA(1) ($M) & EBITDA Margin %(1) Specialty wood-based, chemically activated carbons 180 41.0% 40.6% 42.0% engineered to have the optimal porosity for gasoline 38.8% 160 evaporative emissions control: 142 140 34.4% 37.0% 123 Ca
Slide 50: Products That Enable Regulatory Compliance
Products That Enable Regulatory Compliance 75%(1) of the world’s gasoline vehicles are currently using 70s-80s technology Emission Sources and Impact Control Technology Parking 25-35 1970–80s technology / 0.5-1.0L grams /day One Day Parking India - China - Europe Japan - Brazil - S. Korea + 13 grams
Slide 51: “Bleed” Emissions Patent
“Bleed” Emissions Patent Applicable only to U.S./Canada “near zero” application Control Technology These canister technologies are 1970–80s technology / 0.5-1.0L not covered by the “bleed” One Day Parking India - China - Europe emissions patent Japan - Brazil - S. Korea Ingevity’s granular and p
Slide 52: “Bleed” Emissions Patent
“Bleed” Emissions Patent Applicable only to U.S./Canada “near zero” application Control Technology 1970–80s technology / 0.5-1.0L One Day Parking India - China - Europe Expiration expected to increase Japan - Brazil - S. Korea competition for “near zero” solutions… 1990s technology / 2.0-3.0L • Mult
Slide 53: Incremental Cost per Vehicle
U.S. / Canada Tier 3 / LEV III “Near Zero” Emission Options Alternative solutions exist but have trade offs All options include an ORVR (refueling) canister PHEVs HEVs/ Turbo Conventional ICE “Near Zero” Technology Trade-offs Weight and cost Sealed Tanks Improved fuel-to-air ratio Incremental Co
Slide 54: Intellectual Property Strategy
Intellectual Property Strategy Building patent and product portfolio to address existing and anticipated challenges with future engine technology Technology for Low Purge Conditions Air available to purge the canister • Patent portfolio – Addresses canister High performance under low purge condition
Slide 55: Regulatory Changes Driving Growth
Regulatory Changes Driving Growth Major countries/regions promulgated; new regulations under evaluation 2016 Region / Regulation Vehicle 2017 2018 2019 2020 2021 2022 Sales (M)(5) US(1) & Canada(2) / Tier 3 18.6 40%(1) 60%(1) 60%(1) 80%(1) 80%(1) 100%(1) China(3) / Tier 2 25.1 - - Potential earl
Slide 56: Confidence in China
Confidence in China In addition to Hebei, other major provinces evaluating adoption earlier than national July 2020 deadline Beijing Jing-Jin-Ji (Hebei, Beijing, Tianjin) 2.4M(1) vehicles, ~10% Hebei – January 1, 2019 Changshu Extrusion Facility Yangtze River Delta 4.7M(1) vehicles, ~20% Zhuhai Acti
Slide 57: Investing Across Our Entire Global Network
Investing Across Our Entire Global Network +$70-100M of additional capital needed to meet demand on enacted regulations Wickliffe, KY Wujiang / Changshu +20-30% activation capacity New facility & relocation of Completed 2016 current facility Spending 2018-2019 Covington, VA +15-20% activation capaci
Slide 58: Future Regulatory Opportunities
Future Regulatory Opportunities After China’s move to Tier 2, ~50%(1) of world’s gasoline vehicles will be using antiquated emission standards ~50% of world’s gasoline vehicles using 1970’s technology ~50% of world’s gasoline vehicles using modern technology (U.S., Canada, China) (1) IHS 58
Slide 59: Gasoline Using Vehicles – 2015 to 2030
Gasoline Using Vehicles – 2015 to 2030 Vehicle sales grow an additional 25M/year primarily in regions where regulations are weak and content per vehicle is low Million Vehicles / Year Regulatory Advancement Opportunity ROW = +3.0% CAGR EU = +3.7% CAGR Vehicle sales grow from 30M/yr to 48M/yr Modern,
Slide 60: Global Vehicle Mix Shifts – 2015 to 2040
Global Vehicle Mix Shifts – 2015 to 2040 Carbon Canisters – Gasoline-using vehicles (standard ICE and electric hybrids) continue to be the primary power source for the next decades Powertrain Mix Shifts - By 2030, gasoline-using vehicles’ and battery electric vehicles’ market shares increase 200 and
Slide 61: Adsorbed Natural Gas (ANG)
Adsorbed Natural Gas (ANG) Innovation enabling a natural gas vehicle future Ingevity is the leader in hydrocarbon controlled “catch-and-release” for automotive emissions applications Developed and patented Nuchar® FuelSorb™ carbon monoliths that allow low-pressure (<1,000 psi) onboard natural gas fu
Slide 62: Adsorbed Natural Gas (ANG)
Adsorbed Natural Gas (ANG) Market drivers provide tremendous growth potential and deliver value across a range of vehicle users Safety Ingevity’s carbon adsorbents enable safe, low- Per-vehicle carbon content for pressure storage of natural gas ANG is 100x an automotive Range A hybrid, bi-fuel vehic
Slide 63: Alt-Fuel Hybrid Vehicle Platforms
Alt-Fuel Hybrid Vehicle Platforms ANG’s single powertrain option may provide low owner’s cost and refueling flexibility PHEV CNG bi-fuel ANG bi-fuel (gasoline/electric) (gasoline/3,600 psi) (gasoline/900 psi) Vehicle Prep Cost ($) 6,8801 (dual drive train) 1,200 (hardened valves) 1,200 (hardened
Slide 64: Long-Range Target
Long-Range Target Doubling of revenue from 2015 base Performance Materials Target Consistent >40% 2022 segment EBITDA margins(1) Post-patent pathway to growth 64 (1) Please see appendices included at the end of this presentation for Ingevity's use of non-GAAP financial measures, definitions of those
Slide 65: Deploying Capital to Maximize Returns and Shareholder Value
Deploying Capital to Maximize Returns and Shareholder Value John Fortson EVP and Chief Financial Officer 65
Slide 66: Our Capital Allocation Priorities
Our Capital Allocation Priorities Reinvest in existing businesses o Optimize profitability o Raw material security o Balance sheet discipline Capital Allocation to Maximize Shareholder Return 66
Slide 67: Our Capital Allocation Priorities
Our Capital Allocation Priorities Reinvest in existing businesses Inorganic growth o Strategic fit o Value-creation Capital Allocation to Maximize Shareholder Return 67
Slide 68: Our Capital Allocation Priorities
Our Capital Allocation Priorities Reinvest in existing businesses Inorganic growth Return capital Share o Continual assessment process buybacks Dividends o Use most efficient vehicle Share price Capital Allocation to Maximize Shareholder Return 68
Slide 69: Leverage Strong Balance Sheet
Leverage Strong Balance Sheet Adjusted For Adjusted For $315M G-P Capitalization As of 12/31/2017 $300M Note Issue Acquisition Cash and Cash Equivalents $88 $382 $62 (1) Restricted Investment 71 71 71 Total $159 $453 $133 (2) Bank Revolver ($550M) $0 $0 $0 Bank Term Loan A 375 375 375 Industrial Rev
Slide 70: Optimizing Profitability
Optimizing Profitability Performance Chemicals Adjusted EBITDA(1) Reduce raw material costs Margin Target Shift mix to higher margin applications 2016 – 2022 Manage costs on lower margin products [VALUE]+ Drive supply chain efficiencies [VALUE] G-P integration [VALUE] 25.0% Performance Mat
Slide 71: Target 2022
Target 2022 How we will reach our long-range target Revenue ($M) Adjusted EBITDA(1) ($M) CAGR +9% CAGR +16% 1,500+ Materials 1,070 to Chemicals 500+ 1,130 972 285 to 305 243 (1) Please see appendices included at the end of this presentation for Ingevity's use of non-GAAP financial measures, definiti
Slide 72: Balance Sheet Discipline
Balance Sheet Discipline Strong free cash flow and disciplined capital investment TARGET 23.5% Mid 20’s%+ ~[VALU 500 E]B 19.4% 17.7% ~[VALU E]B 285 to 305 243 ~[VALU 190 202 E]B 5-Year 5-Year Capex Free Cash 2015 2016 2017 2018 … 2022 Operating Flow (1) Adjusted EBITDA(1) ($M) ROIC % Cash Major Capi
Slide 73: Inorganic Growth
Inorganic Growth Strategic Fit Value Creation Value-added, customer- Attractive returns centric chemicals, o IRR > 10% materials or technologies o Attractive opportunity relative to other capital allocation tools Large, attractive end- markets Accretive to segment profile Enhances EBITDA mar
Slide 74: Significant Cumulative Free Cash Flow
Significant Cumulative Free Cash Flow Resources and Flexibility to Reward Shareholders ~1.5B ~1.2B >1.5B $B ~0.4B ~0.3B ~0.4B ~0.4B 5-Year Net Cash 2.5x Cash Operating 12/31/17 GP 5-Year Available in Leverage in Available to Cash Net Debt Acquisition Capex 2022 2022 Invest or Return 74
Slide 75: 2018 Guidance
2018 Guidance ($M; includes G-P pine chemicals acquisition) 2017 Actual 2018 Guidance (1) Revenue $972.4 $1,070 - $1,130 Adjusted EBITDA(2) $242.7 $285 - $305 Adjusted Tax Rate(2) 31.0% 22-24% Capital Expenditures $52.6 $80-$90 Free Cash Flow(3) $121.7 $90-$100 Net Debt Ratio(4) 1.22 2.25-2.0 (1) As
Slide 76: 2019 and Beyond Takeaways
2019 and Beyond Takeaways Top line growth robust due to organic opportunities Strong drop through due to high fixed cost to variable cost ratio and cost discipline drives margin accretion Strong free cash flow generation to deploy for inorganic growth (2022+) or capital return Growth across
Slide 77: Conclusion
Conclusion Michael Wilson President and CEO 77
Slide 78: Long-Range Target
Long-Range Target Consistent Doubling >40% segment Adjusted EBITDA Post-patent of revenue pathway to EBITDA(1) from 2015 margins(1) ~$500 million growth base Target s Revenues ~$1.5 billion 2022 Adjusted EBITDA(1) Margin >30% 2x GDP Mid-20s % Top quartile Growth in segment specialty pavement, oilfie
Slide 79: The Meaning Behind Ingevity
The Meaning Behind Ingevity 79
Slide 80: Appendix
Appendix _ ingevity
Slide 81: Non-GAAP Financial Measures
Non-GAAP Financial Measures Ingevity has presented certain financial measures, defined below, which have not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and has provided a reconciliation to the most directly comparable financial measure calculated in accor
Slide 82: Reconciliation of Net Income (Loss) (GAAP) to Adjusted Earnings (Loss) (Non-GAAP)
Reconciliation of Net Income (Loss) (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) Twelve Months Ended December 31, In millions, except per data (unaudited) 2017 2016 Net income (loss) $ 145.0 $ 44.4 Less: Net income (loss) attributable to noncontrolling interests 18.7 9.2 Net income (loss) attributa
Slide 83: Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) Years Ended December 31, In millions, unaudited 2017 2016 Net income (loss) (GAAP) $ 145.0 $ 44.4 Provision (benefit) for income taxes 29.8 42.6 Interest expense, net 15.8 17.9 Separation costs 0.9 17.5 Depreciation and amortization 4
Slide 84: Reconciliation of Segment Operating Profit (GAAP) to Segment EBITDA (Non-GAAP)
Reconciliation of Segment Operating Profit (GAAP) to Segment EBITDA (Non-GAAP) Years Ended In millions (unaudited) December 31, Performance Materials 2017 2016 Segment operating profit (GAAP) $ 122.0 $ 106.9 Depreciation and amortization 19.8 16.4 Segment EBITDA (Non-GAAP) $ 141.8 $ 123.3 Net sales
Slide 85: Unaudited Pro Forma Segment EBITDA
Unaudited Pro Forma Segment EBITDA The following unaudited pro forma measures are derived from the historical financial statements of Ingevity, prepared in accordance with U.S. generally accepted accounting principles. These unaudited pro forma measures include adjustments required by SEC Staff Acco
Slide 86: Unaudited Pro Forma Segment EBITDA
Unaudited Pro Forma Segment EBITDA Reconciliation of Segment Operating Profit (GAAP) to Pro Forma Segment EBITDA (Non-GAAP) Year Ended December 31, 2014 Performance Materials Pro Forma Unaudited In millions Adjustments Pro Forma Segment operating profit (GAAP) $ 89.5 $ (2.6) (A) $ 86.9 Depreciation