Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — Gardner Denver — Q1 2009 Earnings Presentation
18 slides from Ingersoll Rand's earnings presentation, Apr 24, 2009
Slide 1: Q1 Financial Results April 24, 2009
Q1 Financial Results April 24, 2009
Slide 2: Safe Harbor Disclosure
All of the statements made by Gardner Denver in this presentation or made orally in connection with it, other than historical facts, are forward-looking statements. As a general matter, forward-looking statements are those focused upon anticipated events or trends, expectations, and beliefs relating
Slide 3: Well-Diversified Business
United States Europe Asia Canada Latin America Other 747.9 760.8 292.8 54.5 98.6 63.7 Well-Diversified Business Industrial Manufacturing Upstream Energy Downstream Energy Transportation Medical Environment Chemical Food and Beverage Printing Paper Automotive Services Other Mining and Construction 0.
Slide 4: Balanced Channels to Market
Aftermarket Original Equipment 26 74 Balanced Channels to Market Distribution Direct OEM 35 40 25 Revenues By Sales Channel Recurring Revenue Base Opportunity to double aftermarket revenues (1),(2) (1),(2)
Slide 5: The New Gardner Denver
The New Gardner Denver Past Future Focus Product Customer Innovation Medium High Organic growth Medium High Culture Top down Inclusive Performance Profitable Highly profitable From a good company to a great company
Slide 6: Realigned Operations to Focus on Customers
Realigned Operations to Focus on Customers Industrial Products Group 55% of Q1 2009 revenues Engineered Products Group 45% of Q1 2009 revenues Segment Products Competitors Compressors (>50 psi) Blowers (<50 psi, vacuum) Atlas Copco Ingersoll Rand Dresser Industries UTC/Sullair Enpro/Quincy Compresso
Slide 7: Industrial Products Group: Revenues by Industry and Geography
United States Europe Asia Canada Latin America Other 24 50 18 2 2 4 Industrial Products Group Industrial Manufacturing Downstream Energy Transportation Medical Environmental Chemical Food and Beverage Printing Paper Auto Svcs Other Mining and Construction 0.41 0.08 0.12 0.03 0.04 0.03 0.07 0.04 0.03
Slide 8: Industrial Products Group: Revenues by Sales Channel
Aftermarket Original Equipment 29 71 Industrial Products Group Distribution Direct OEM 52 29 19 Revenues By Sales Channel Recurring Revenue Base Primarily sold through industrial distribution (1),(2) (1),(2)
Slide 9: Engineered Products Group: Revenues by Industry and Geography
United States Europe Asia Canada Latin America Other 0.39 0.28 0.22 0.05 0.04 0.02 Engineered Products Group Industrial Manufacturing Upstream Energy Downstream Energy Transportation Medical Environmental Chemical Food and Beverage Paper Other Mining 0.13 0.18 0.22 0.05 0.12 0.06 0.1 0.01 0.05 0.06
Slide 10: Engineered Products Group: Revenues by Sales Channel
Aftermarket Original Equipment 20 80 Engineered Products Group Distribution Direct OEM 10 56 34 Revenues By Sales Channel Recurring Revenue Base Focused primarily on direct and OEM accounts (2) (2)
Slide 11: Proforma Historical Results
Proforma Historical Results See Note 4
Slide 12: Strategy Initiatives Underway
Strategy Initiatives Underway 2 Innovative products 3 Organic growth 1 The Gardner Denver Way Selective acquisitions 4 Margin improvement 5 $
Slide 13: Goal of improving IPG operating margins to 14%
14 x 14 Goal of improving IPG operating margins to 14% by 2014 Requires $100-$125 million operating margin expansion in 5 years Opportunity to increase DEPS by $1.30-$1.60 without revenue leverage, based on 30% tax rate and 52.5 million shares outstanding To be accomplished through plant consolidati
Slide 14: Restructuring Projects
Restructuring Projects Restructuring Projects
Slide 15: Restructuring Costs and Benefits
Restructuring Costs and Benefits
Slide 16: Strong Cash Flow Generation
Strong Cash Flow Generation Expansion of lean principles enhances cash generated from working capital Inventory reduction goal of 0.5 turns per year Goal results in approximately $25 million in cash provided by operations based on Q1 cost of sales Near term capital spending remains below annual rate
Slide 17: Q1 Financial Results April 24, 2009
Q1 Financial Results April 24, 2009
Slide 18: Presentation Notes
Presentation Notes Note 1: 2008 results proforma for CompAir acquisition Note 2: Company estimates Note 3: 2008 actual Note 4: Adjusted Operating Income presented in the Proforma Historical Results on page 11 excludes certain unusual or non-recurring charges and credits, including restructuring char