Ingersoll Rand Inc. · NYSE:IR

Ingersoll Rand — Gardner Denver — Q2 2017 Earnings Presentation

20 slides from Ingersoll Rand's earnings presentation, Aug 3, 2017

  1. Slide 1: Second Quarter 2017 Earnings Presentation

    Gardner Denver Second Quarter 2017 Earnings Presentation August 3, 2017

  2. Slide 2: Replay Information

    Replay Information ▪ Dial toll-free: +1.877.344.7529 ▪ International: +1.412.317.0088 ▪ Conference ID: #10110669 ▪ 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 ▪ Financial Performance ▪ Segment Highlights ▪ Full Year 2017 Guidance & Summary ▪ Q&A 4

  5. Slide 5: Q2 Highlights

    Q2 Highlights Solid performance across all three segments and continued execution of our value-creation strategy  Revenues of $579M, up 25% versus prior year  Adjusted EBITDA of $132M, up 53% versus the prior year, with adjusted EBITDA margin of 22.8%, an improvement of 410 basis points versus pri

  6. Slide 6: Q2 Highlights – Executing Our Strategy

    Q2 Highlights – Executing Our Strategy Strong Foundation, Clear Strategy, Committed Leadership  Creating a performance driven culture with highly engaged employees: Deploy – Creating a great place to work – launched multi-year engagement initiative Talent – Acting like owners – awarded ~$100M in eq

  7. Slide 7: Q2 Financial Performance

    Q2 Financial Performance (Dollars in millions, excl. EPS) Revenues Adjusted EBITDA Adjusted EPS1 $132 $579 $0.24 $462 $87 $0.17 22.8% Margin 18.7% Margin 2016 2017 2016 2017 2016 2017 Up 25% Up 53% Up 41% Margin Up 410 bps ¹ Adjusted EPS is defined as adjusted net income divided by adjusted diluted

  8. Slide 8: Q2 Financial Performance (continued)

    Q2 Financial Performance (continued) (Dollars in millions) Working Capital Free Cash Flow2 Leverage (Op. Working Capital1 as % of LTM Revenue) (Net Debt / LTM Adjusted EBITDA) 32.6% 7.3x $39 6.3x $103 $23 4.2x 3.8x 30.4% $164 $12 2016 2017 2016 2017 Q2'16 Q1'17 Q1'17 Q2'17 Pro-forma IPO5 Improved 22

  9. Slide 9: Q2 Segment Performance

    Q2 Segment Performance 9

  10. Slide 10: Industrials Segment – Q2 Highlights

    Industrials Segment – Q2 Highlights (Dollars in millions) As Prior YOY Ex-FX YOY Reported Year Change Change Revenues $282.8 $280.8 0.7% 2.2% Adjusted EBITDA $63.4 $54.6 16.1% 17.9% Adjusted EBITDA Margin 22.4% 19.4% 300 bps Highlights:  Orders up 6% ex-FX  Revenues up 2% ex-FX; sequentially up 14

  11. Slide 11: Energy Segment – Q2 Highlights

    Energy Segment – Q2 Highlights (Dollars in millions) As Prior YOY Ex-FX YOY Reported Year Change Change Revenues $239.5 $123.5 93.9% 95.4% Adjusted EBITDA $62.2 $24.5 153.9% 155.6% Adjusted EBITDA Margin 26.0% 19.8% 620 bps Highlights:  Orders up 110% ex-FX; upstream up > 600%  Revenues up 95% ex-

  12. Slide 12: Medical Segment – Q2 Highlights

    Medical Segment – Q2 Highlights (Dollars in millions) As Prior YOY Ex-FX YOY Reported Year Change Change Revenues $56.8 $57.7 (1.6%) (0.2%) Adjusted EBITDA $15.4 $13.9 10.8% 12.5% Adjusted EBITDA Margin 27.1% 24.1% 300 bps Highlights:  Orders flat ex-FX  Revenues flat ex-FX; sequentially up 3% vs

  13. Slide 13: Full Year Guidance and Summary

    Full Year Guidance and Summary 13

  14. Slide 14: 2017 Guidance

    2017 Guidance ▪ Adjusted EBITDA $510M to $530M ▪ Capital Expenditures $65M to $70M ▪ Year End Net Debt Leverage1 Below 3.3x ▪ Average Shares Outstanding2 187.9M ¹ Excluding the impact of any potential future acquisitions 2 Represents the full year weighted average shares outstanding using H1’17 actu

  15. Slide 15: Summary

    Summary  Strong Q2 performance  25% revenue growth  22.8% adjusted EBITDA margin with margin expansion of 410 bps  Solid incremental flow-through  H2 2017  Confident in delivering full year 2017 adjusted EBITDA guidance  Reducing leverage position1  Continuing execution of our value-creation

  16. Slide 16: Q&A

    Q&A 16

  17. Slide 17: Appendix

    Appendix 17

  18. Slide 18: Reconciliation of Net Loss and Loss Per Share to Adjusted Net Income and Adjusted EPS

    Reconciliation of Net Loss and Loss Per Share to Adjusted Net Income and Adjusted Earnings per Share 18

  19. Slide 19: Reconciliation of Net Loss to Adjusted EBITDA and Adjusted Net Income and CFOA to Free Cash Flow

    Reconciliation of Net Loss to Adjusted EBITDA and Adjusted Net Income and CFOA to Free Cash Flow 19

  20. Slide 20: Reconciliation of Segment Adjusted EBITDA to Loss Before Income Taxes

    Reconciliation of Segment Adjusted EBITDA to Loss Before Income Taxes 20

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