2023 年第四季度報告和調整後營業收入*分別增長 29% 和 21%2023 年全年報告和調整後每股收益 (EPS) *分別為 9.60 美元和 9.42 美元，分別增長 31% 和 26%，其中韓國經營績效分別貢獻了 0.47 美元和 0.45 美元2023 年全年經營現金流為 10.57 億美元，比 2022 年增長 1.52 億美元該公司預計 2024 年全年報告 EPS 將在 10.20 美元至 11.15 美元之間，調整後 EPS 將在 9.15 美元至 9.85 美元之間，反映了韓國業務剝離的影響 伊利諾伊州，韋斯特切斯特, Feb. 09, 2024 (GLOBE NEWSWIRE) -- 全球領先的食品和飲料製造業配料方案供應商Ingredion Incorporated (NYSE: INGR)，今日發布了 2023 年第四季度和 2023 年全年業績報告。根據美國公認會計原則 (GAAP) 報告的 2023 年和 2022 年第四季度以及 2023 年和 2022 年全年業績，其中包括從公司呈報的非 GAAP 財務指標中排除的項目。 「我們的業績表現異常出色，並在 2023 年保持彈性， ...

Financial Data and Key Metrics Changes - For the full year 2023, net sales increased by 3% to $8.2 billion, marking an all-time high, while adjusted operating income rose by 23% to $969 million, also a record high [5][8][53] - Adjusted EPS grew to $9.42, which is 26% higher than the previous year [8] - Gross profit margin improved by 260 basis points to 21.4%, marking the sixth consecutive quarter of gross margin growth [18][53] Business Line Data and Key Metrics Changes - Specialty ingredients net sales grew by 4%, contributing to gross margin expansion, representing 34% of consolidated net sales by the end of 2023 [15] - Texture products experienced a drop in orders during the middle quarters of 2023, but a gradual increase in order volumes was noted towards the end of the year [10][15] Market Data and Key Metrics Changes - Sales volume decreased by 7% in Q4, but this was an improvement compared to Q3 as customers worked through destocking [20] - South America growth was driven by favorable foreign exchange impacts and strong performance in the Argentina joint venture, although Q4 results lagged by one month [19] Company Strategy and Development Direction - The company is focused on enhancing its go-to-market capabilities through global training and consultative selling, particularly in healthful solutions like sugar reduction and protein fortification [45][107] - A new operational structure was announced to better align resources and capabilities with customer needs, particularly in the Texture and Healthful Solutions segments [66][107] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing incremental volume opportunities in 2024, anticipating a gradual improvement in order volumes [65][96] - The company expects net sales to be flat to up low-single-digits in 2024, with adjusted operating income anticipated to grow mid-single-digits [27][28] Other Important Information - The company achieved a perfect score in the Human Rights Campaign Foundation's Corporate Equality Index for 2023 and was recognized on Fortune's Most Admired Companies list [7] - Cash from operations for the year exceeded $1 billion, contributing to a positive return for shareholders with a 15% total shareholder return [49][24] Q&A Session Summary Question: What is the company's view on share repurchase and M&A? - The company maintains a disciplined approach to capital allocation, prioritizing organic growth investments, dividends, and M&A opportunities [38][39] Question: How is the company hedging raw material costs for 2024? - The company is hedged for approximately 80% of gross corn purchases and about 50% of co-product values, with expectations of lower corn costs impacting margins positively [40][72] Question: What are the expectations for volume demand in 2024? - The company anticipates a mid-single-digit increase in sales volume demand for 2024, with growth expected across all geographies except Europe in the first quarter [99][98] Question: How will the divestiture of the South Korea business impact financials? - The South Korea business contributed approximately $325 million in net sales for 2023, and its absence will be factored into the 2024 outlook [124][109] Question: What are the trends in customer reformulation? - There is a focus on affordability and wellness trends, with expectations for increased innovation in food service and product reformulation as consumer spending stabilizes [138][117]

Totals may not foot due to rounding | --- | --- | |-------------------------|--------| | Margin | $ 3.78 | | Volume | (1.65) | | Foreign Exchange Rates | (0.16) | | Other Income | 0.02 | | Changes from Operations | $ 1.99 | Full year cash from operations and capital allocation Full year 2024 outlook Q1 2024 expected to be lower than prior year including Argentina devaluation impact 20 • Closed S. Korea divestiture on February 1, 2024 • Opportunistic share repurchases Texture & Healthful Solutions Other SUGA ...

Financial Data and Key Metrics Changes - Reported net sales for Q3 2023 were approximately $2 billion, up 1% year-over-year, while gross profit dollars grew 13% with gross margins exceeding 20% [18] - Reported operating income was $213 million, and adjusted operating income was $219 million, driven by favorable price mix but partially offset by higher input costs and lower volume [18] - Adjusted earnings per share (EPS) increased by 35% year-over-year to $2.33, while reported EPS rose by 48% to $2.36 [18][60] Business Line Data and Key Metrics Changes - Specialty ingredients saw a year-to-date net sales growth of 6%, with starch-based texturizers, pharma, and personal care experiencing double-digit growth [15] - In North America, net sales increased by 3%, driven by strong price mix and solid sales volumes across sweeteners and industrial ingredients [19] - South America reported a comparable net sales decline of 8%, with operating income down 33% due to lower volumes and higher energy costs [28] Market Data and Key Metrics Changes - EMEA net sales increased by 1% for the quarter, with a 5% increase when excluding foreign exchange impacts, while operating income rose by 7% [28] - Asia Pacific net sales were down 2% for the quarter but flat on a constant currency basis, with operating income up 22% [58] - Foreign exchange provided a 1% tailwind, particularly from the strengthening of the Brazilian real and Colombian peso [9] Company Strategy and Development Direction - The company plans to reorganize its business operations in Q1 2024 to better align with customer needs in texture and healthful solutions, which is expected to enhance financial reporting and strategic value drivers [66] - Continued focus on sustainability initiatives and regenerative agricultural projects is seen as a key area for shared value creation across the supply chain [24] - The company aims to leverage its diverse product portfolio to maintain shareholder value and navigate challenging market conditions [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about recovering sales volumes and improving margins, anticipating that volume weakness related to inventory corrections is largely behind them [65] - The operating environment remains uncertain, but the company is confident in its resilience and ability to adapt to market changes [65] - The company expects net sales to increase mid-single digits for the full year, with adjusted EPS guidance raised to a range of $9.05 to $9.45 [62] Other Important Information - Cash from operations for the year is expected to be between $650 million and $750 million, with significant dividends and share repurchases planned [31][32] - The company has faced over $50 million in higher allocated fixed costs due to lower volumes but has managed to offset these through productivity efforts [16] Q&A Session Summary Question: Impact of segment realignment on innovation cycle times - Management is excited about the reorganization to align operations with value propositions in texture and healthful solutions, which is expected to enhance growth opportunities [38][39] Question: 2024 margin outlook - Management indicated that it is early in the contracting cycle, but they are prepared for a different environment compared to previous years, focusing on managing pricing and volume trade-offs [41][43] Question: Capital allocation and investment needs - The company plans to push out some growth capital expenditures into later years due to current volume slowdowns, while still investing in healthful solutions platforms [48] Question: Volume recovery and customer demand - Management noted that sequential improvements in volumes are expected to continue, particularly as customer destocking has decelerated [25][71] Question: Pricing strategies in response to currency fluctuations - The company believes it can pass through changes in foreign exchange impacts to customers, leveraging its established pricing strategies [83][84]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the transition period from to Washington, D.C. 20549 Form 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-13397 Ingredion Incorporated (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of i ...

Financial Performance - Net sales for Q3 2023 increased by 1% to $2033 million compared to $2023 million in Q3 2022[27, 35] - Gross profit margin increased by 220 bps to 207% in Q3 2023 from 185% in Q3 2022[33, 35] - Reported diluted EPS increased to $236/share in Q3 2023 from $159/share in Q3 2022[35] - Adjusted diluted EPS increased by 15% to $233/share in Q3 2023 from $173/share in Q3 2022[35] - YTD net sales increased by 5% to $6239 million from $5959 million[52] - YTD gross profit margin increased by 240 bps to 216% from 192%[52] - YTD reported diluted EPS increased by $200/share to $763/share[52] - YTD adjusted diluted EPS increased by 24% to $745/share from $580/share[52] Regional Performance (Q3 2023) - North America net sales increased by 3%[37, 40] - South America net sales decreased by 8%[37, 40] - Asia-Pacific net sales decreased by 2%[37, 48] - EMEA net sales increased by 1%[37, 48] 2023 Full Year Outlook - Adjusted EPS is expected to be $905 to $945[58] - Cash from operations is expected to be $650 million to $750 million[58] - CAPEX is expected to be approximately $310 million[58] - Net sales are expected to be up mid-single-digits[65]

```markdown [PART I FINANCIAL INFORMATION](index=3&type=section&id=Part%20I%20Financial%20Information) [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Ingredion Incorporated's unaudited condensed consolidated financial statements for the three and six months ended June 30, 2023 and 2022, including statements of income, comprehensive income (loss), balance sheets, equity, and cash flows, along with detailed notes explaining significant accounting policies, acquisitions, investments, derivative activities, financing arrangements, and segment information [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) **Condensed Consolidated Statements of Income (Three Months Ended June 30):** | Metric (in millions, except per share) | 2023 | 2022 | | :----------------------------------- | :--- | :--- | | Net sales | $2,069 | $2,044 | | Gross profit | $441 | $390 | | Operating income | $251 | $213 | | Net income attributable to Ingredion | $163 | $142 | | Diluted EPS | $2.42 | $2.12 | **Condensed Consolidated Statements of Income (Six Months Ended June 30):** | Metric (in millions, except per share) | 2023 | 2022 | | :----------------------------------- | :--- | :--- | | Net sales | $4,206 | $3,936 | | Gross profit | $928 | $769 | | Operating income | $542 | $423 | | Net income attributable to Ingredion | $354 | $272 | | Diluted EPS | $5.27 | $4.04 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) **Condensed Consolidated Statements of Comprehensive Income (Loss) (Three Months Ended June 30):** | Metric (in millions) | 2023 | 2022 | | :------------------- | :--- | :--- | | Net income | $164 | $145 | | Comprehensive income (loss) attributable to Ingredion | $144 | $(28) | **Condensed Consolidated Statements of Comprehensive Income (Loss) (Six Months Ended June 30):** | Metric (in millions) | 2023 | 2022 | | :------------------- | :--- | :--- | | Net income | $358 | $278 | | Comprehensive income (loss) attributable to Ingredion | $291 | $237 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) **Condensed Consolidated Balance Sheets (as of June 30, 2023 vs. December 31, 2022):** | Metric (in millions) | June 30, 2023 | December 31, 2022 | | :------------------- | :------------ | :---------------- | | Total assets | $7,600 | $7,561 | | Total liabilities | $4,125 | $4,299 | | Total equity | $3,389 | $3,163 | | Cash and cash equivalents | $257 | $236 | | Accounts receivable, net | $1,366 | $1,411 | | Inventories | $1,618 | $1,597 | | Short-term borrowings | $522 | $543 | | Accounts payable and accrued liabilities | $1,198 | $1,339 | [Condensed Consolidated Statements of Equity and Redeemable Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity%20and%20Redeemable%20Equity) **Condensed Consolidated Statements of Equity and Redeemable Equity (as of June 30, 2023 vs. December 31, 2022):** | Metric (in millions) | June 30, 2023 | December 31, 2022 | | :------------------- | :------------ | :---------------- | | Total Ingredion stockholders' equity | $3,377 | $3,147 | | Retained earnings | $4,469 | $4,210 | | Accumulated other comprehensive loss | $(1,119) | $(1,048) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) **Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30):** | Metric (in millions) | 2023 | 2022 | | :------------------- | :--- | :--- | | Cash provided by (used for) operating activities | $279 | $(4) | | Cash used for investing activities | $(160) | $(136) | | Cash (used for) provided by financing activities | $(97) | $145 | | Net income | $358 | $278 | | Depreciation and amortization | $109 | $107 | | Changes in working capital (net) | $(228) | $(449) | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1. Interim Financial Statements](index=11&type=section&id=1.%20Interim%20Financial%20Statements) - The unaudited Condensed Consolidated Financial Statements are prepared on the same basis as the audited annual statements, reflecting normal recurring adjustments[28](index=28&type=chunk) - Interim results are not necessarily indicative of the results expected for the full year or any other future period[28](index=28&type=chunk) [2. Summary of Significant Accounting Standards and Policies](index=11&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Standards%20and%20Policies) - Adopted **ASU 2020-04** (Reference Rate Reform) and **ASU 2022-04** (Supplier Finance Programs) at the beginning of fiscal year 2023[30](index=30&type=chunk)[31](index=31&type=chunk) - Neither ASU had a material impact on the Condensed Consolidated Financial Statements, except for disclosures related to supplier finance programs[30](index=30&type=chunk)[31](index=31&type=chunk) [3. Acquisitions](index=11&type=section&id=3.%20Acquisitions) - Acquired a **65% controlling interest** in Mannitab Pharma Specialties Private Limited for **$22 million** on December 1, 2022, adding **$28 million** in goodwill and intangible assets[32](index=32&type=chunk) - Acquired Amishi Drugs and Chemicals Private Limited for **$7 million** on August 1, 2022, adding **$3 million** in goodwill and intangible assets[33](index=33&type=chunk) - Both acquisitions are Indian manufacturers, and their financial results are reported in the Asia-Pacific segment[32](index=32&type=chunk)[35](index=35&type=chunk) [4. Investments](index=13&type=section&id=4.%20Investments) **Total Investments (in millions):** | Metric | June 30, 2023 | December 31, 2022 | | :----- | :------------ | :---------------- | | Equity investments | $23 | $23 | | Equity method investments | $116 | $113 | | Marketable securities | $4 | $3 | | **Total investments** | **$143** | **$139** | - The Argentina joint venture with Grupo Arcor is pending customary antitrust review to formally establish the venture[37](index=37&type=chunk) [5. Derivative Instruments and Hedging Activities](index=13&type=section&id=5.%20Derivative%20Instruments%20and%20Hedging%20Activities) - The Company uses derivative financial instruments (commodity futures, options, swaps, foreign currency forward contracts, interest rate swaps, and T-Locks) to manage market risks related to commodity prices (corn, natural gas), foreign currency exchange rates, and interest rates[38](index=38&type=chunk)[39](index=39&type=chunk)[43](index=43&type=chunk)[46](index=46&type=chunk) **Derivatives in Cash Flow Hedging Relationships (Gains (Losses) included in AOCL as of, in millions):** | Metric | June 30, 2023 | December 31, 2022 | | :------------------------------------------------ | :------------ | :---------------- | | Commodity contracts, net of income tax effect | $(75) | $8 | | Foreign currency contracts, net of income tax effect | $(1) | $1 | | Interest rate contracts, net of income tax effect | $(3) | $(3) | | **Total** | **$(79)** | **$6** | - As of June 30, 2023, Accumulated Other Comprehensive Loss (AOCL) included **$76 million** of net losses on commodities-related derivative instruments, T-Locks, and foreign currency hedges designated as cash flow hedges, expected to be reclassified into earnings **within the next 12 months**[50](index=50&type=chunk) [6. Fair Value Measurements](index=17&type=section&id=6.%20Fair%20Value%20Measurements) **Assets and Liabilities Measured at Fair Value (as of June 30, 2023, in millions):** | Metric | Total | Level 1 | Level 2 | Level 3 | | :---------------- | :---- | :------ | :------ | :------ | | Marketable Securities | $4 | $4 | $— | $— | | Derivative assets | $30 | $29 | $1 | $— | | Derivative liabilities | $118 | $86 | $32 | $— | | Long-term debt | $1,752| $— | $1,752 | $— | **Assets and Liabilities Measured at Fair Value (as of December 31, 2022, in millions):** | Metric | Total | Level 1 | Level 2 | Level 3 | | :---------------- | :---- | :------ | :------ | :------ | | Marketable Securities | $3 | $3 | $— | $— | | Derivative assets | $60 | $49 | $11 | $— | | Derivative liabilities | $64 | $51 | $13 | $— | | Long-term debt | $1,733| $— | $1,733 | $— | - Fair value measurements are categorized into three levels based on input reliability: **Level 1** (quoted prices in active markets), **Level 2** (observable inputs other than Level 1), and **Level 3** (unobservable inputs)[53](index=53&type=chunk) [7. Financing Arrangements](index=19&type=section&id=7.%20Financing%20Arrangements) **Total Debt (in millions):** | Metric | June 30, 2023 | December 31, 2022 | | :----- | :------------ | :---------------- | | Total long-term debt | $1,939 | $1,940 | | Total short-term borrowings | $522 | $543 | | **Total debt** | **$2,461** | **$2,483** | **Commercial Paper Program (Six Months Ended June 30):** | Metric | 2023 | 2022 | | :----- | :--- | :--- | | Average amount outstanding (in millions) | $468 | $425 | | Average interest rate | 5.13% | 0.74% | | Weighted average maturity (days) | 10 | 19 | - The weighted average interest rate on total indebtedness increased to approximately **4.3%** for the six months ended June 30, 2023, from approximately **3.1%** for the six months ended June 30, 2022[138](index=138&type=chunk) [8. Commitments and Contingencies](index=19&type=section&id=8.%20Commitments%20and%20Contingencies) - The Company entered into a short-term extension of its collective bargaining agreement at the Indianapolis manufacturing facility to facilitate negotiations for a new long-term agreement[58](index=58&type=chunk) - A **$27 million income tax benefit** was recorded in Q4 2022, related to Brazilian local government tax incentives, with **$31 million remaining** as of June 30, 2023, expected to be recovered **within five years**[59](index=59&type=chunk) [9. Pension and Other Postretirement Benefits](index=20&type=section&id=9.%20Pension%20and%20Other%20Postretirement%20Benefits) **Net Periodic Benefit Cost (Pension Plans, in millions):** | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | U.S. Plans | $(1) | $1 | $1 | $(2) | | Non-U.S. Plans | $2 | $2 | $3 | $3 | | **Total** | **$1** | **$3** | **$4** | **$1** | **Net Postretirement Benefit Cost (in millions):** | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net periodic benefit cost | $1 | $1 | $2 | $2 | - Anticipates cash contributions of **$1 million** to U.S. pension plans and **$3 million** to non-U.S. pension plans in 2023[60](index=60&type=chunk) [10. Equity](index=20&type=section&id=10.%20Equity) - The Board of Directors authorized a new stock repurchase program permitting the purchase of **up to 6 million shares** of common stock through December 31, 2025; **no shares were repurchased** during the first half of 2023[62](index=62&type=chunk)[63](index=63&type=chunk) **Total Share-Based Compensation Expense (Pre-tax, in millions):** | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Stock options | $1 | $1 | $2 | $2 | | Restricted stock units ("RSUs") | $3 | $3 | $7 | $6 | | Performance shares and other awards | $1 | $4 | $5 | $7 | | **Total pre-tax compensation expense** | **$5** | **$8** | **$14** | **$15** | **Accumulated Other Comprehensive Loss (AOCL, in millions):** | Metric | June 30, 2023 | December 31, 2022 | | :----- | :------------ | :---------------- | | Balance, AOCL | $(1,119) | $(1,048) | - The 2020 performance share awards that vested in February 2023 achieved a **77% payout**, and the 2021 performance share awards are estimated to pay out at **180%**[76](index=76&type=chunk) [11. Information by Segment and Geographic Region](index=30&type=section&id=11.%20Information%20by%20Segment%20and%20Geographic%20Region) **Net Sales to Unaffiliated Customers by Segment (in millions):** | Segment | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | North America | $1,342 | $1,284 | $2,698 | $2,458 | | South America | $257 | $290 | $526 | $542 | | Asia-Pacific | $267 | $275 | $544 | $547 | | EMEA | $203 | $195 | $438 | $389 | | **Total net sales** | **$2,069** | **$2,044** | **$4,206** | **$3,936** | **Operating Income by Reportable Segment (in millions):** | Segment | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | North America | $197 | $161 | $404 | $317 | | South America | $23 | $39 | $64 | $77 | | Asia-Pacific | $27 | $21 | $55 | $43 | | EMEA | $42 | $29 | $99 | $60 | | Corporate | $(38) | $(35) | $(75) | $(69) | | **Total operating income** | **$251** | **$213** | **$542** | **$423** | **Total Assets by Reportable Segment (in millions):** | Segment | As of June 30, 2023 | As of December 31, 2022 | | :------------ | :------------------ | :---------------------- | | North America (a) | $4,580 | $4,499 | | South America | $922 | $949 | | Asia-Pacific | $1,395 | $1,467 | | EMEA | $703 | $646 | | **Total assets** | **$7,600** | **$7,561** | [12. Supplementary Information](index=32&type=section&id=12.%20Supplementary%20Information) **Accounts Receivable, Net (in millions):** | Metric | June 30, 2023 | December 31, 2022 | | :----- | :------------ | :---------------- | | Accounts receivable — trade | $1,221 | $1,200 | | Accounts receivable — other | $162 | $228 | | Allowance for credit losses | $(17) | $(17) | | **Total accounts receivable** | **$1,366** | **$1,411** | **Inventories (in millions):** | Metric | June 30, 2023 | December 31, 2022 | | :----- | :------------ | :---------------- | | Finished and in process | $998 | $962 | | Raw materials | $527 | $539 | | Manufacturing supplies | $93 | $96 | | **Total inventories** | **$1,618** | **$1,597** | - As of June 30, 2023, participating financial institutions held **$105 million** of the Company's liabilities recorded in accounts payable and accrued liabilities under supply chain finance programs[93](index=93&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Ingredion's financial performance, condition, and results of operations for the three and six months ended June 30, 2023. It highlights growth in net sales, operating income, net income, and diluted EPS, driven by favorable pricing and customer mix, while also discussing liquidity, capital resources, and forward-looking statements [Overview](index=33&type=section&id=Overview) - Ingredion is a leading global ingredients solutions provider, transforming various raw materials into value-added ingredients and biomaterials for diverse industries[94](index=94&type=chunk) - For the second quarter of 2023, the Company achieved **growth in net sales, operating income, net income, and diluted earnings per share**, primarily driven by price and customer mix, partially offset by lower volumes and foreign exchange impacts[95](index=95&type=chunk)[96](index=96&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) **Key Financial Highlights (Q2 2023 vs. Q2 2022):** | Metric (in millions, except per share) | 2023 | 2022 | Change (%) | | :----------------------------------- | :--- | :--- | :--------- | | Net sales | $2,069 | $2,044 | 1% | | Operating income | $251 | $213 | 18% | | Net income attributable to Ingredion | $163 | $142 | 15% | | Diluted EPS | $2.42 | $2.12 | 14% | **Key Financial Highlights (H1 2023 vs. H1 2022):** | Metric (in millions, except per share) | 2023 | 2022 | Change (%) | | :----------------------------------- | :--- | :--- | :--------- | | Net sales | $4,206 | $3,936 | 7% | | Operating income | $542 | $423 | 28% | | Net income attributable to Ingredion | $354 | $272 | 30% | | Diluted EPS | $5.27 | $4.04 | 30% | - For Q2 2023, **net sales increased 1% to $2,069 million**, driven by price and customer mix, partially offset by lower volumes and foreign currency impacts[100](index=100&type=chunk) - For H1 2023, **net sales increased 7% to $4,206 million**, driven by price and customer mix, partially offset by lower volumes and unfavorable foreign currency impacts[119](index=119&type=chunk) - North America's operating income **increased 22% in Q2 2023** and **27% in H1 2023**, driven by favorable price and customer mix[111](index=111&type=chunk)[128](index=128&type=chunk) - South America's operating income **decreased 41% in Q2 2023** and **17% in H1 2023**, due to lower volumes, higher input costs, and adverse foreign exchange impacts[113](index=113&type=chunk)[130](index=130&type=chunk) - Asia-Pacific's operating income **increased 29% in Q2 2023** and **28% in H1 2023**, primarily driven by favorable price and customer mix[115](index=115&type=chunk)[132](index=132&type=chunk) - EMEA's operating income **increased 45% in Q2 2023** and **65% in H1 2023**, primarily driven by favorable price and customer mix[117](index=117&type=chunk)[134](index=134&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) **Total Available Liquidity (as of June 30, 2023, in millions):** | Category | Amount | | :------- | :----- | | Domestic liquidity | $614 | | International liquidity | $855 | | **Total available liquidity** | **$1,469** | - Total debt outstanding was approximately **$2.5 billion** as of June 30, 2023, with **$1.7 billion** in senior notes not requiring principal repayment until 2026-2050[138](index=138&type=chunk) - The Company expects available cash balances, future cash flow from operations, access to debt markets, and borrowing capacity to provide **sufficient liquidity for at least the next twelve months**[139](index=139&type=chunk) [Net Cash Flows](index=39&type=section&id=Net%20Cash%20Flows) **Cash Flow Summary (Six Months Ended June 30, in millions):** | Metric | 2023 | 2022 | | :----- | :--- | :--- | | Cash provided by (used for) operating activities | $279 | $(4) | | Cash used for investing activities | $(160) | $(136) | | Cash (used for) provided by financing activities | $(97) | $145 | | Capital expenditures and mechanical stores purchases | $(154) | $(144) | | Dividends paid, including to non-controlling interests | $(95) | $(90) | | Repurchases of common stock, net | $— | $(83) | - Cash provided by operating activities **increased to $279 million in H1 2023 from cash used of $4 million in H1 2022**, primarily due to changes in working capital and current period net income[140](index=140&type=chunk) - Capital investment commitments for 2023 are anticipated to be **approximately $300 million**[141](index=141&type=chunk) - Dividends paid increased due to an **increase in the quarterly dividend from $0.65 to $0.71 per share** of common stock during the third quarter of 2022[142](index=142&type=chunk) [Critical Accounting Policies and Estimates](index=39&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - There have been **no changes** to the Company's critical accounting policies and estimates during the first half of 2023[145](index=145&type=chunk) [New Accounting Pronouncements](index=39&type=section&id=New%20Accounting%20Pronouncements) - Information regarding new accounting pronouncements is incorporated by reference to Note 2 to the Condensed Consolidated Financial Statements[146](index=146&type=chunk) [Forward-Looking Statements](index=40&type=section&id=Forward-Looking%20Statements) - This section contains forward-looking statements regarding Ingredion's prospects, future operations, and financial condition, which are subject to inherent risks and uncertainties[148](index=148&type=chunk)[149](index=149&type=chunk) - Actual results and developments may differ materially from expectations due to various risks, including global economic conditions, commodity prices, foreign currency fluctuations, supply chain disruptions, and regulatory changes[150](index=150&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the Annual Report on Form 10-K for detailed disclosures about market risks, including interest rates, raw material and energy costs, and foreign currencies, and states that no material changes occurred during the first half of 2023 - There have been **no material changes** in the disclosures regarding market risks (interest rates, raw material and energy costs, and foreign currencies) during the six months ended June 30, 2023[154](index=154&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures as of June 30, 2023, concluding they are effective. No material changes to internal control over financial reporting occurred during the quarter - Management, including the Chief Executive Officer and Chief Financial Officer, concluded that disclosure controls and procedures were **effective as of June 30, 2023**[155](index=155&type=chunk) - There have been **no material changes** in internal control over financial reporting during the three months ended June 30, 2023[156](index=156&type=chunk) [PART II OTHER INFORMATION](index=43&type=section&id=Part%20II%20Other%20Information) [ITEM 1. LEGAL PROCEEDINGS](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The Company is involved in ongoing discussions with environmental agencies regarding alleged emissions violations at its Bedford Park facility and environmental regulatory matters at its Indianapolis facility. Despite these, the Company does not believe the outcomes of currently known legal proceedings will be material to its financial condition or results of operations - The Company is engaged in discussions with the Illinois Environmental Protection Agency regarding emissions exceeding permit limits at its Bedford Park manufacturing facility[158](index=158&type=chunk) - The U.S. Department of Justice and Ingredion are engaged in discussions regarding environmental regulatory matters at the Indianapolis manufacturing facility[159](index=159&type=chunk) - The Company does not believe that the results of currently known legal proceedings and inquiries will be **not material** to its financial condition or results of operations[160](index=160&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares of common stock were repurchased by the Company during the three months ended June 30, 2023. As of June 30, 2023, 6.0 million shares remain available for repurchase under the stock repurchase program authorized through December 31, 2025 **Issuer Purchases of Equity Securities (Three Months Ended June 30, 2023):** | Period | Total Number of Shares Purchased (in thousands) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares That May Yet be Purchased Under the Plans or Programs at End of Period (in thousands) | | :----------------- | :-------------------------------------------- | :--------------------------- | :------------------------------------------------------------------------------- | :--------------------------------------------------------------------------------------------------------------------------------------------- | | April 1 – April 30, 2023 | — | — | — | 6,000 shares | | May 1 – May 31, 2023 | — | — | — | 6,000 shares | | June 1 – June 30, 2023 | — | — | — | 6,000 shares | | **Total** | **—** | **—** | **—** | **—** | - As of June 30, 2023, **6.0 million shares remain available** for repurchase under the stock repurchase program authorized on September 26, 2022, through December 31, 2025[162](index=162&type=chunk) [ITEM 5. OTHER INFORMATION](index=44&type=section&id=Item%205.%20Other%20Information) James P. Zallie, the President and CEO, entered into an amended Rule 10b5-1 trading plan on May 4, 2023, for the sale of up to 56,331 shares of common stock, effective August 11, 2023, and expiring February 2, 2026. An existing plan was terminated on the same date - James P. Zallie, President and Chief Executive Officer, entered into an amended Rule 10b5-1 trading plan on May 4, 2023, for the sale of **up to 56,331 shares** of common stock, commencing August 11, 2023, and expiring February 2, 2026[163](index=163&type=chunk) [ITEM 6. EXHIBITS](index=44&type=section&id=Item%206.%20Exhibits) This section lists all exhibits required by Item 601 of Regulation S-K, including the 2023 Stock Incentive Plan, certifications from the Chief Executive Officer and Chief Financial Officer, and various XBRL documents - Exhibits include the Ingredion Incorporated 2023 Stock Incentive Plan, certifications of the Chief Executive Officer and Chief Financial Officer (pursuant to Sarbanes-Oxley Act sections 302 and 906), and various Inline XBRL documents[166](index=166&type=chunk)[168](index=168&type=chunk) [SIGNATURES](index=47&type=section&id=Signatures) - The report was signed on **August 8, 2023**, by James D. Gray, Executive Vice President and Chief Financial Officer, and Davida M. Gable, Vice President, Global Controller and Global Shared Services[172](index=172&type=chunk) ```

• Softer volume demand across the food supply chain due to inventory rebalancing and consumers economizing • Continued focus on operational cost discipline and productivity initiatives 23 olde Creation Customer Co-Creation and Consumer Preferred Innovation Core Food and Industrial Ingredients Upcoming investor activities Toronto non-deal roadshow September 12, 2023 To supplement the consolidated financial results prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), we use non- ...

Ingredion Incorporated (NYSE:INGR) Q2 2023 Earnings Conference Call August 8, 2023 9:00 AM ET Company Participants Noah Weiss - Vice President, Investor Relations Jim Zallie - President and Chief Executive Officer Jim Gray - Executive Vice President and Chief Financial Officer Conference Call Participants Ben Bienvenu - Stephens Inc Andrew Strelzik - BMO Capital Markets Cody Ross - UBS Ben Theurer - Barclays Operator Good day and thank you for standing by. Welcome to the Ingredion Second Quarter 2023 Earnin ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-13397 Ingredion Incorporated (Exact name of registrant as specified in its charter) Washington, D.C. 20549 Form 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 Delaware (State or other jurisdiction of incor ...