Ingevity : Q2 2021 Earnings Infographic(opens in new window)

Second Quarter 2021

Financial Results and Highlights

Ingevity delivers strong second quarter results driven by higher volumes and supported by price increases across both segments.

FINANCIAL HIGHLIGHTS

					vs Q2	vs Q2
					2020	2019
Net sales			$358.4M		
		32.4%	1.6%
1			$	117.7M		
Adj. EBITDA				75.1%	8.7%
		1	32.8%		
Adj. EBITDA margin	800 bps	210 bps
Adj. earnings	1		$	62.3M		
			138.7%	8.3%
		1	$	1.55		
Adj. earnings per share		146.0%	13.9%
Free cash low	1	$	41.9M		
		23.6%	16.0%

BUSINESS SEGMENT PERFORMANCE

		Performance	Performance
		Materials	Chemicals
Revenue	$126.0M	$232.4M
Segment EBITDA	$61.3M	$56.4M
Segment EBITDA margin	48.7%	24.3%
REVISED GUIDANCE
Sales	$1.320B - $1.360B
Adjusted EBITDA1	$425M - $440M

VS Q2 2020 OPERATIONAL HIGHLIGHTS

$	Adjusted EBITDA of $118 million rose 75%; adjusted EBITDA margin
	of 32.8% increased 800 bps
	Performance Materials: Strong sales of activated carbon products
	used in gasoline vapor emissions control compared to Q2 2020
	that was aected by industry shutdowns in N. America and Europe;
	tempered by ongoing microchip shortage
	Performance Chemicals: Pavement Technologies sales up 6%
	driven by growth in cold recycling technology adoption; signiicant
	increases in Engineered Polymers sales due to higher demand
	in automotive, footwear and apparel, and industrial equipment;
	Industrial Specialties sales growth via strengthening lubricants,
	adhesives and dispersants markets and further price increases for
	TOR and TOFA products
$	Q2 operating cash low of $66 million drove free cash low up 24%
to $42 million
	Net debt to adjusted EBITDA ratio of 2.1x

VS Q2 2019 OPERATIONAL HIGHLIGHTS

$

Adjusted EBITDA up 9% and adjusted EBITDA margin up 210 bps driven by improved price/mix and foreign exchange

Q2 sales above Q2 2019 results largely due to improved price/mix

Performance Materials: Strong price improvement

Performance Chemicals: Consistent growth in pavement through cyclical downturns; signiicant declines in oilield and inks partially oset by lubricants and dispersants growth; Engineered Polymers up on volume and price/mix

"Our strong second quarter inancial results were driven by higher volumes and were supported by price increases across both segments," said John Fortson, president and CEO. "In Performance Materials, automotive-based activated carbon sales were up sharply compared to the second quarter of 2020 that was impacted by the automotive shutdowns in North America and Europe, even though this quarter's results were tempered by the ongoing negative impact of the global microchip shortage. In Performance Chemicals, we saw signiicant growth across all businesses. Despite what we expect will be ongoing transportation and logistics headwinds, raw materials inlation and auto sector input disruptions, we're conident our team will deliver strong performance in the second half of the year."

JOHN FORTSON, PRESIDENT AND CEO

1Represents a non-GAAP inancial measure, please refer to quarterly earning presentations for Ingevity's use of non-GAAP inancial measures, deinitions of these inancial measures as well as the reconciliation to the nearest GAAP inancial measure.