Top Banner

Click here to load reader

Ingersoll Investor Presentation

Apr 08, 2017

ReportDownload

  • Ingersoll Rand advances the quality of life by creating comfortable, sustainable and efficient environments.

    Ingersoll Rand (NYSE:IR) advances the quality of

    life by creating comfortable, sustainable and efficient

    environments. Our people and our family of

    brandsincluding Club Car, Ingersoll Rand,

    Thermo King and Tranework together to

    enhance the quality and comfort of air in homes and

    buildings; transport and protect food and

    perishables; and increase industrial productivity and

    efficiency. We are a $13 billion global business

    committed to a world of sustainable progress and

    enduring results.

  • 2

    Safe Harbor

    This presentation includes forward-looking statements, which are statements that are not

    historical facts, including statements that relate to the mix of and demand for our products;

    performance of the markets in which we operate; our share repurchase program including the

    amount of shares to be repurchased and timing of such repurchases; our projected 2017 full-

    year financial performance and targets including assumptions regarding our effective tax rate.

    These forward-looking statements are based on our current expectations and are subject to

    risks and uncertainties, which may cause actual results to differ materially from our current

    expectations. Such factors include, but are not limited to, global economic conditions, the

    outcome of any litigation, demand for our products and services, and tax law changes.

    Additional factors that could cause such differences can be found in our Form 10-K for the year

    ended December 31, 2015, Form 10-Q for the quarters ended March 31, 2016, June 30, 2016,

    and September 30, 2016, and other SEC filings. We assume no obligation to update these

    forward-looking statements.

    This presentation also includes non-GAAP financial information which should be considered

    supplemental to, not a substitute for, or superior to, the financial measure calculated in

    accordance with GAAP. The definitions of our non-GAAP financial information and reconciliation

    to GAAP is attached to the earnings news release that can be found at www.ingersollrand.com

    and are defined in footnotes at the end of this presentation. All data for beyond the fourth

    quarter of 2016 are estimates.

    2

  • Key Facts

    Ingersoll Rand has been listed continuously on the New York Stock Exchange since October 11, 1906

    Ingersoll Rand is the 16th oldest company and the 12th oldest continuously listed company on the NYSE

    $20B Market cap

    Trades on NYSE

    Ingersoll Rand is 145 years old and was first incorporated in 1905

    $13.5 Billion Revenue

    Two business segments

    Climate - Commercial and Residential HVACand Transport Refrigeration

    Industrial Air compression, Industrial products, low speed vehicles

    Company Background

    Ingersoll Rand is incorporated in Swords, Ireland

    North American Headquarters in Davidson, NC

    40,000 employees

    51 manufacturing locations

    Company Background

    Key Facts

    3

  • 4

    A ~$10B group of six growth-oriented SBUs led by high-performing leaders and teams

    Trane and Thermo King are world leaders in HVAC and refrigerated transportation

    An outstanding network of global operations, channels and employees

    Stronger together with BOS linkage and commercial synergies

    EMEA is Europe, Middle East, and Africa. Asia Pacific includes India. Services

    includes aftermarket parts, accessories, and all types of service.

    Commercial

    HVAC

    Residential

    HVAC

    HVAC

    Parts & Supply

    Transport

    Solutions

    68%

    15%

    11%

    6%

    North America

    EMEA

    Asia Pacific

    Latin America

    60%

    40%

    Equipment

    Services

    Climate Segment An Unmatched Strategic

    Position

  • 5

    A $3.0B group of five growth-oriented Strategic Business Units

    Ingersoll Rand, ARO and Club Car are #1 or #2 brands in their core markets

    World-class engineered and mission-critical products, systems and services

    Balanced across industries, geographic regions, equipment and aftermarket

    SBUs are stronger together with BOS linkage and channel synergies

    EMEA is Europe, Middle East, India and Africa. Services includes aftermarket parts,

    accessories and service.

    AIR Power ToolsFluid

    Management

    Material

    HandlingClub Car

    55%

    19%

    21%

    5%

    North America

    EMEIA

    Asia Pacific

    Latin America

    65%

    35%

    Equipment

    Services

    Our Industrial Businesses are in Leading

    Positions

    5

  • 2016 REVENUE: $13.5B 33% Aftermarket

    By End Markets

    66%North America

    15%Eur/ME

    14%Asia

    5%Latin

    America

    By Geography

    5%Golf/Utility

    16%Transport Refrigeration

    16%Non-Res

    Building

    (Overseas)

    31%Non-Res Building

    (N. America)

    18%Industrial Process

    14%Residential, (N. America)

    67% New equipment

    Represents Diverse End Markets and Geography

    Climate77%

    Industrial23%

    By Segment

    2016 Revenue Profile

    2013 2014 2015

    9.6

    %

    11.0

    %

    Adjusted Operating Margins

    2016

    11.9

    %11.4

    %

    6

  • 7

    Leading global brands and market positions

    Strong long-term growth drivers

    - Macro drivers are energy efficiency and

    sustainability

    - Large installed base drives replacement

    business and parts and service growth

    - Global footprint and exposure to attractive

    growing markets

    - Organic growth enhanced by innovation

    - Market recoveries

    Product/service offering underpinned by shared technologies, materials, manufacturing, processes

    and supply chain

    Continued margin and cash flow improvement opportunity from operational/functional excellence

    A world leader in creating comfortable, sustainable and

    efficient environments

    Ingersoll Rand: Foundational Strengths

    7

  • 8

    Urbanization

    Energy Consumption

    Food & Water Scarcity

    Climate Change

    Industrial Productivity

    & Efficiency

    Ingersoll Rand Possesses Expertise to

    Address Pressing World Challenges

    8

  • 9

    Leading market sharesStrong, recognized brandsWell positioned in both

    geographic and end markets

    Strategic Foundation Continues to Underpin Top-Quartile Performance

    Sustainable and Profitable

    Growth, Cash Flow and Shareholder Value

    Sustained

    Growth

    Operational

    Excellence

    Winning

    Culture

    Cash Flow /

    Dynamic

    Capital

    Allocation

    Strategic Foundation Continues to

    Underpin Top-Quartile Performance

    9

  • 10

    Steady operating performance improvement

    $11.5

    $12.0

    $12.5

    $13.0

    $13.5

    $14.0

    2013 2014 2015 2016

    Net Revenue

    3% CAGR

    In Billions

    $0.00

    $1.00

    $2.00

    $3.00

    $4.00

    $5.00

    2013 2014 2015 2016

    Adjusted EPS

    0%

    5%

    10%

    15%

    20%

    25%

    2013 2014 2015 2016

    Cash Flow ROIC

    6 Ppts

    16% CAGR

    2.3 Ppts

    Steady Operating Performance Improvement

    10

    0%

    2%

    4%

    6%

    8%

    10%

    12%

    14%

    2013 2014 2015 2016

    Adjusted Operating Margin

  • 11

    2013 2014 2015 2016

    1,345**

    810862

    985**

    Strong Balance Sheet and Free Cash Flow

    $ Millions YE 13 YE 14 YE 15 YE 16

    Cash 1,937 1,705 737 1,715

    Debt 3,521 4,224 4,218 4,070

    Net Debt 1,584 2,519 3,481 2,355

    Free Cash Flow$ Millions

    *Reported includes Allegion security business and excludes restructuring and one-time spin costs and refinancing premium

    **Excludes the impact of the IRS agreement and restructuring in 2015 and excludes restructuring and the proceeds on the sale of

    Hussmann in 2016

    Post Security

    Spin

    1,151*

    2011 to 2016 avg. FCF % of net income = 100%

    2016 FCF % of adjusted net income = 121%

    FCF increase from higher operating results and working

    capital management.

    $5.14/share

    11

  • 12

    Strategic Business

    Investment

    Maintained Strong

    Balance Sheet

    at BBB Metrics

    Digital

    Energy efficiency

    Channel Expansion

    No meaningful debt

    maturities until 2018

    Building value through

    acquisitions

    Working on our pipeline of

    targets

    $0.64

    $0.84

    $1.00

    $1.16

    $1.36

    $1.60

    2012 2013 2014 2015 2016 2017F

    Share Repurchase Minimum Offset

    Dilution from Benefits Program

    2016: Repurchased 4.9M shares

    for $250M

    2016 dividend increased to $1.60/

    share

    20% annual CAGR 2012 to 2017

    Competitive Dividend Payout

    36

    55

    76

    98 103

    108

    2011 2012 2013 2014 2015 2016

    Cumulative share repurchase

    2011 to 2016 --108 million shares

    2016 Dynamic Capital Allocation Focused on Delivering High Returns

    12

  • 13

    Strong momentum and further upside

    Attractive end markets

    Leading brands and growth through

    innovation

    Substantial position in developing

    markets with significant potential

    Excellent management team

Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.