Ingersoll Rand Inc. · NYSE:IR

Ingersoll Rand — Gardner Denver — Q2 2019 Earnings Presentation

18 slides from Ingersoll Rand's earnings presentation, Aug 1, 2019

  1. Slide 1: Gardner Denver Q2 2019 Earnings Presentation

    Gardner Denver Q2 2019 Earnings Presentation August 1, 2019

  2. Slide 2: Replay Information

    Replay Information ▪ Dial toll-free: +1.877.344.7529 ▪ International: +1.412.317.0088 ▪ Conference ID: #10133603 ▪ Log on to: https://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 ▪ Company Highlights ▪ Gardner Denver/Ingersoll Rand Industrials Integration Update ▪ Strategy Update ▪ Segment Highlights ▪ Guidance ▪ Q&A 4

  5. Slide 5: Q2 2019 Highlights

    Q2 2019 Highlights1  Revenue of $629M, down 3% excluding FX  Adjusted EPS of $0.43 and Adjusted EBITDA of $148M with margin of 23.5%2  GDP-exposed businesses (represents ~80% of revenue)3  Revenue up 4% excluding FX  Triple digit Adjusted EBITDA margin expansion in Industrials and Medical segme

  6. Slide 6: Gardner Denver/IR Industrials Transaction Update

    Gardner Denver/IR Industrials Transaction Update Creating a Premier Diversified Leader in Mission-Critical Flow Creation and Industrial Products Provides Greater Scale and Reach through Leading Brands and Market Position Enhances End Market Balance and Diversity (Upstream energy reduced from ~25% to

  7. Slide 7: Integration: 4-Step Plan Governed by GDX

    Integration: 4-Step Plan Governed by GDX • 150+ employees engaged across GDI/IR Focused Team • 23 functional workstreams • Critical day 1 priorities by function and Step 1: Charter sub-function • Precise scope definition • Current state processes (value stream Step 2: Blue Print mapping) and capabil

  8. Slide 8: Our Strategy

    Our Strategy Deploy Talent Expand Margins Accelerate Growth Allocate Capital Effectively 8

  9. Slide 9: Industrials Segment – Q2 Highlights

    Industrials Segment – Q2 Highlights (Dollars in millions) As Prior YOY Ex-FX YOY Reported Year Change Change Revenue $334.3 $328.7 1.7% 5.5% Adjusted EBITDA $76.6 $71.1 7.7% 11.5% Adjusted EBITDA Margin 22.9% 21.6% 130 bps Innovation in Action Highlights:  Orders flat ex-FX  Revenue up 5% ex-FX 

  10. Slide 10: Energy Segment – Q2 Highlights

    Energy Segment – Q2 Highlights (Dollars in millions) As Prior YOY Ex-FX YOY Reported Year Change Change Revenue $222.8 $273.1 (18.4)% (16.8)% Adjusted EBITDA $56.3 $79.7 (29.4)% (28.5)% Adjusted EBITDA Margin 25.3% 29.2% (390) bps Highlights: Innovation in Action  Orders down 30% ex-FX  Upstream o

  11. Slide 11: Medical Segment – Q2 Highlights

    Medical Segment – Q2 Highlights (Dollars in millions) As Prior YOY Ex-FX YOY Reported Year Change Change Revenue $72.0 $66.4 8.4% 12.0% Adjusted EBITDA $21.4 $18.0 18.9% 23.3% Adjusted EBITDA Margin 29.7% 27.1% 260 bps Acquisition of Oina Acquired July 2019 Highlights:  Orders up 9% ex-FX  Revenue

  12. Slide 12: Revised 2019 Guidance

    Revised 2019 Guidance 2019 Revised 2019 Guidance Guidance (April 2019) (July 2019) Revenue1 Growth (ex-FX) Growth (ex-FX) Industrials up MSD up MSD Medical up MSD up MSD Mid & Downstream Energy up MSD up MSD Upstream Energy down LDD to HSD down ~30% Total Gardner Denver up LSD to MSD down LSD FX Imp

  13. Slide 13: Appendix

    Appendix

  14. Slide 14: Q2 2019 Financial Performance

    Q2 2019 Financial Performance (Dollars in millions, excl. EPS) Revenue Adjusted EBITDA Adjusted EPS1 Down 6% Down 9% Down 1 Cent Down 3% ex-FX Margin Down 70 bps $668 $0.44 $162 $0.43 $629 $148 24.2% Margin 23.5% Margin Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Industrials +5% ex-FX Industrial

  15. Slide 15: Q2 2019 Financial Performance

    Q2 2019 Financial Performance (Dollars in millions) Working Capital Free Cash Flow 1 Leverage (Op. Working Capital as % of LTM Sales) (FCF Conversion in % and FCF in $) (Net Debt / LTM Adjusted EBITDA) Increased 40 bps Improved 0.4x Y/Y 205% 25.5% 25.1% 113% 2.4x $124M $51M 2.0x 2.0x Q2 2018 Q2 2019

  16. Slide 16: Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS

    Reconciliation of Net Income and Earnings per Share to Adjusted Net Income and Adjusted Earnings per Share GARDNER DENVER HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME AND EARNINGS PER SHARE TO ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE (Dollars in millions, except per share

  17. Slide 17: Reconciliation of Net Income to Adjusted EBITDA and CFOA to Free Cash Flow

    Reconciliation of Net Income to Adjusted EBITDA and Adjusted Net Income and CFOA to Free Cash Flow GARDNER DENVER HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA AND ADJUSTED NET INCOME AND CASH FLOWS - OPERATING ACTIVITIES TO FREE CASH FLOW (Dollars in millions) (Una

  18. Slide 18: Reconciliation of Segment Adjusted EBITDA to Income Before Income Taxes

    Reconciliation of Segment Adjusted EBITDA to Income Before Income Taxes GARDNER DENVER HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF SEGMENT ADJUSTED EBITDA TO INCOME BEFORE INCOME TAXES (Dollars in millions) (Unaudited) For the Three Month For the Six Month Period Ended Period Ended June 30, Ju

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