Financial Data and Key Metrics Changes - The second quarter revenue reached a record high, growing over 17% year-over-year, surpassing the previous record set in the first quarter [22][11] - Gross profit increased nearly 8% year-over-year, while gross margin declined about 300 basis points due to margin compression across segments [23][24] - Adjusted EBITDA for the quarter was $121.1 million, marking the second-highest quarterly figure, with diluted adjusted EPS of $1.73, up over 11% compared to the previous year [25][30] Business Line Data and Key Metrics Changes - Performance Chemicals revenue grew 28% year-over-year, representing 71% of total sales, while Performance Materials revenue decreased by about 3% due to lower auto production in China [24][40] - Performance Chemicals segment EBITDA was nearly $66 million, up 16% year-over-year, but the segment EBITDA margin decreased by 230 basis points [38] - Performance Materials segment sales were $122.4 million, down 2.9% year-over-year, primarily impacted by global auto production declines [40][41] Market Data and Key Metrics Changes - North American light vehicle production increased by 13% year-over-year, contributing to higher volumes in automotive carbon [44] - The automotive sector in China showed signs of recovery, with vehicle manufacturing down 44% in April, down 1% in May, and up 35% in June [104] Company Strategy and Development Direction - The company announced the acquisition of Ozark Materials for $325 million, expected to close in Q4, which aligns with its strategy for value-creating growth in pavement technologies [14][27] - An investment of $60 million in Nexeon Limited was also announced, aimed at developing silicon-based anode materials for electric vehicles, indicating a strategic focus on the growing EV market [17][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of auto production in the second half of the year and reiterated guidance for revenue and EBITDA, while remaining cautious about potential recession risks [58][59] - The company has not yet seen signs of a recession impacting its business, but is monitoring market conditions closely [59] Other Important Information - The company reported a strong safety record for the first half of the year, highlighting its commitment to safety and ESG initiatives [13] - Changes to the board of directors were announced, with the addition of two new members to enhance strategic direction [20] Q&A Session Summary Question: Potential revenue from Nexeon - Management indicated that the potential revenue from Nexeon's technology could be significantly higher than current automotive applications, estimating $75 to $100 per vehicle [63][65] Question: Opportunities with Ozark Materials - Management noted that Ozark has been a customer for a few years, and there are opportunities to extend their rosin products into the pavement marking market [66] Question: Price sensitivity of Capa products - Demand for Capa products remains robust despite operational inefficiencies, with no significant pricing pressure expected [67] Question: Nexeon's agreements and facility needs - Nexeon has signed offtake agreements with large OEMs, and while facility expansions may be needed in the future, current supply can meet initial demands [70][72] Question: Ozark's EBITDA margin and logistics - The 20% EBITDA margin for Ozark does not include potential synergies, and the logistics business will support product movement but will not be a focus as a third-party logistics provider [74][75] Question: Raw material costs and pricing dynamics - Management has not yet seen a peak in raw material costs, and while price increases are being implemented, future concessions may be necessary as costs stabilize [98][100] Question: Growth in the gum rosin industry - The gum rosin pricing has dropped recently but remains significantly higher than in early 2020, indicating ongoing market dynamics [116]

Financial Performance - Net sales for Q2 2022 were $419.9 million, a 17.2% increase from $358.4 million in Q2 2021, driven by favorable pricing of $81.7 million (23%) despite a volume decline of $12.6 million (4%) and unfavorable foreign currency effects of $7.6 million (2%) [145][146][147]. - Gross profit for Q2 2022 increased to $150.6 million, up from $139.8 million in Q2 2021, primarily due to favorable pricing improvements of $80.1 million, offset by increased manufacturing costs of $61.9 million due to inflationary pressures [145][148]. - Net income for the first half of 2022 was $120.6 million, compared to $93.0 million in the same period of 2021, reflecting strong operational performance [145]. - The company reported a net income of $59.8 million for the three months ended June 30, 2022, compared to $44.3 million in 2021, reflecting improved financial performance [183]. Expenses and Costs - Selling, general, and administrative expenses (SG&A) for Q2 2022 were $48.7 million, representing 11.6% of net sales, down from 13.3% in Q2 2021, attributed to higher sales and decreased legal costs [151]. - Interest expense for Q2 2022 was $15.1 million, up from $12.2 million in Q2 2021, reflecting changes in financing costs [159]. - Segment EBITDA for Performance Materials decreased by $5.7 million in the second quarter of 2022, primarily due to higher manufacturing costs and unfavorable volume [168]. Sales and Segments - The sales increase for the first half of 2022 was $124.0 million, driven by favorable pricing of $140.2 million (21%), despite a volume decline of $6.0 million (1%) and unfavorable foreign currency effects of $10.2 million (2%) [149]. - For the three months ended June 30, 2022, the Performance Materials segment net sales were $122.4 million, a decrease of $3.6 million compared to $126.0 million in 2021, driven by a volume decline of 4% [165][166]. - The Performance Chemicals segment net sales increased to $297.5 million for the three months ended June 30, 2022, up from $232.4 million in 2021, reflecting a $65.1 million increase primarily due to favorable pricing and product mix [171][172]. - Industrial Specialties sales increased by 38.1% in the second quarter of 2022, driven by strong performance across all markets, particularly in oilfield and adhesives [175]. Guidance and Projections - The company expects 2022 net sales guidance to be between $1.525 billion and $1.650 billion, with adjusted EBITDA guidance of $430 million to $470 million [186]. - Performance Chemicals is anticipated to see continued volume growth, particularly in the Pavement Technologies and Engineered Polymers businesses, while Performance Materials is expected to experience moderate growth due to recovery in auto production [186][187]. - Projected capital expenditures for 2022 are between $155 million and $175 million, with no material commitments associated with these expenditures as of June 30, 2022 [196]. Cash Flow and Financing - Cash flow provided by operating activities for the six months ended June 30, 2022, was $114.8 million, a decrease from $116.9 million in the same period of 2021 [197]. - The company expects to fund interest payments, capital expenditures, and other obligations using cash flow from operations and available capacity under its revolving credit facility, which had an undrawn capacity of $466.2 million as of June 30, 2022 [190]. - Cash used in financing activities for the six months ended June 30, 2022, was $193.3 million, primarily driven by payments on long-term borrowings and stock repurchases [203]. Debt Management - The company redeemed $300 million of its 4.50% Senior Notes due in 2026 and repaid a $323 million Term Loan, indicating a proactive approach to debt management [143]. Risks and Challenges - The company faces risks related to supply chain disruptions and inflationary pressures on raw materials, which could impact future performance [140][144]. - The company is monitoring geopolitical disruptions, particularly the war in Ukraine, but has not seen material adverse effects on its business [142]. - The company anticipates that 2022 will continue to be impacted by global logistical challenges, geopolitical uncertainty, and significant cost inflation [187]. Foreign Operations and Currency Risks - The company’s foreign operations accounted for approximately 23 percent of net sales in the first six months of 2022, exposing it to foreign currency exchange rate risks [207]. - A hypothetical 10 percent adverse change in the average Chinese renminbi and euro to U.S. dollar exchange rates would have decreased net sales and income before income taxes by approximately $9.8 million and $4.1 million, respectively, for the six months ended June 30, 2022 [207]. Cash and Assets - As of June 30, 2022, cash and cash equivalents totaled $131.3 million, a decrease of $144.1 million compared to December 31, 2021, primarily due to share repurchases and debt refinancing activities [191][199]. - Total current assets decreased by $47.2 million to $677.7 million as of June 30, 2022, primarily due to a decrease in cash and cash equivalents [199]. - As of June 30, 2022, approximately $532 million of the company's borrowings included a variable interest rate component, exposing it to interest rate risk [208].

Financial Data and Key Metrics Changes - Ingevity achieved record sales of nearly $383 million in Q1 2022, representing a year-over-year growth of approximately 20% [30] - Adjusted EBITDA increased by about 13% year-over-year to $119 million, marking a record first quarter result [31] - Diluted adjusted earnings per share rose nearly 28% over the prior year to $1.62, driven by increased sales and effective cost management [31] - Gross profit was up over 9% year-over-year, although gross margin declined due to a revenue mix shift from Performance Materials to Performance Chemicals [31] Business Line Data and Key Metrics Changes - Performance Chemicals segment saw a 30% increase in sales quarter-over-quarter to $234 million, driven by strong demand and price improvements [36] - Performance Materials segment sales increased by 5.5% to $148 million, marking the second-best quarter ever for this segment [42] - EBITDA for Performance Chemicals was $41 million, up almost 30% year-over-year, while Performance Materials' EBITDA was $78 million, up nearly 6% [39][48] Market Data and Key Metrics Changes - North American vehicle production decreased by 3.9% in Q1 2022, impacting the Performance Materials segment [44] - Sales in South America grew significantly due to the implementation of Brazil's Proconve L-7 emission standards, expected to progressively increase revenue over three years [45] - The supply-demand dynamic for Chinese gum rosins remains favorable, with prices 50% above levels from late 2020 due to poor harvests [38] Company Strategy and Development Direction - Ingevity is focused on capturing value through price increases to offset inflationary pressures in energy, raw materials, and logistics [15] - The company aims to drive long-term organic growth through innovation, including new product introductions in the oilfield market [17] - Sustainability is positioned as a competitive advantage, with ongoing efforts to generate data for product certifications to command higher prices [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong year ahead, despite uncertainties related to auto production issues, the situation in Ukraine, and COVID-19 in China [51] - The company anticipates a good paving season and is prepared to adapt to market conditions to maximize profitability [51][52] - Management highlighted the importance of operational excellence and flexibility in navigating economic and geopolitical distractions [25][26] Other Important Information - Ingevity spent approximately $28 million on capital expenditures in Q1 2022, with over 40% allocated to growth initiatives [33] - The company has approximately $262 million remaining under its share repurchase authorization, with plans to continue repurchasing shares as part of its capital allocation strategy [33] Q&A Session Summary Question: Insights on potential new European regulations - Management expects an ORVR standard similar to US Tier 2, which could significantly increase revenue potential [56] Question: Capital allocation strategy and M&A opportunities - The company is open to both small and larger-scale M&A opportunities, focusing on organic growth projects and maintaining a robust M&A pipeline [58][60] Question: Impact of Chinese gum rosin market and lockdowns - Lockdowns in China are tightening the gum rosin market, affecting harvesting and supply [62] Question: Growth in adhesives market post-Kraton acquisition - The company sees significant growth potential in the adhesives market, independent of Kraton's acquisition [66] Question: Infrastructure bill impact on paving business - The infrastructure bill is expected to positively impact the paving business in the second half of the year, but current demand is driven by strong market conditions [79] Question: Pricing and inflation in Performance Materials - Pricing increases are anticipated to help offset inflation, with a focus on maintaining supply in China [123]

| --- | --- | --- | --- | |-------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | FIRST QUARTER 2022 EARNINGS PRESENTATION | | | | | May 5, 2022 | | | | Use of non-GAAP financial measures: This presentation includes certain non‐GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non‐GAAP financial measures to GAAP financial measures are provided within the Appendix to this presentat ...

PART I - FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited Condensed Consolidated Financial Statements for Ingevity Corporation for the quarterly period ended March 31, 2022 [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2022, Ingevity reported a 19.5% year-over-year increase in net sales to $382.8 million and a rise in net income to $60.8 million Condensed Consolidated Statements of Operations (Unaudited) | In millions, except per share data | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Net sales** | $382.8 | $320.3 | | **Gross profit** | $137.8 | $126.2 | | **Income before income taxes** | $77.6 | $61.8 | | **Net income** | $60.8 | $48.7 | | **Basic earnings per share** | $1.56 | $1.21 | | **Diluted earnings per share** | $1.55 | $1.20 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive income for Q1 2022 was $50.7 million, a decrease from the prior year, primarily due to a foreign currency adjustment loss Comprehensive Income (Loss) Summary (Unaudited) | In millions | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Net income (loss)** | $60.8 | $48.7 | | **Other comprehensive income (loss), net of tax** | $(10.1) | $8.5 | | **Comprehensive income (loss)** | $50.7 | $57.2 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2022, total assets were $2.46 billion, with a notable reclassification of $300.0 million of long-term debt to current Balance Sheet Summary | In millions | March 31, 2022 (Unaudited) | December 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $732.8 | $724.9 | | **Total Assets** | $2,455.8 | $2,469.0 | | **Total Current Liabilities** | $551.7 | $268.9 | | **Total Liabilities** | $1,769.7 | $1,795.2 | | **Total Equity** | $686.1 | $673.8 | - Notes payable and current maturities of long-term debt increased significantly from **$19.6 million to $319.6 million**, primarily due to the reclassification of the 4.50% Senior Notes due 2026 ahead of their redemption[16](index=16&type=chunk)[118](index=118&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was $24.3 million in Q1 2022, a decrease from the prior year due to working capital changes Cash Flow Summary (Unaudited) | In millions | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $24.3 | $51.1 | | **Net cash provided by (used in) investing activities** | $(30.2) | $(17.3) | | **Net cash provided by (used in) financing activities** | $(46.3) | $(52.1) | | **Change in cash, cash equivalents, and restricted cash** | $(52.9) | $(20.0) | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail revenue disaggregation, debt covenant compliance, an accrued legal liability, and a subsequent debt redemption event - The company operates in two segments: Performance Materials (activated carbon products for automotive and purification) and Performance Chemicals (pavement technologies, industrial specialties, engineered polymers)[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) Net Sales by Segment (in millions) | Segment | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Performance Materials | $148.4 | $140.7 | | Performance Chemicals | $234.4 | $179.6 | | **Total Net Sales** | **$382.8** | **$320.3** | - The company was in compliance with all debt covenants as of March 31, 2022; the **total net leverage ratio was 2.2** against a maximum of 4.0, and the **interest coverage ratio was 9.9** against a minimum of 3.0[77](index=77&type=chunk) - An **$85.0 million liability** related to the BASF litigation verdict is accrued in Other liabilities on the balance sheet as of March 31, 2022; the company disagrees with the verdict and intends to appeal[106](index=106&type=chunk)[108](index=108&type=chunk) - Subsequent to the quarter end, on April 27, 2022, the company redeemed its **$300.0 million 4.50% Senior Notes** due 2026, funded primarily by its revolving credit facility[118](index=118&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 19.5% net sales increase in Q1 2022, an updated full-year guidance, and the company's strong liquidity position [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q1 2022 net sales rose by $62.5 million, driven by favorable pricing that offset increased manufacturing costs from inflation Net Sales Variance Analysis (Q1 2022 vs Q1 2021) | In millions | Amount | | :--- | :--- | | Prior year Net sales (Q1 2021) | $320.3 | | Volume | $6.6 | | Price/Mix | $58.7 | | Currency effect | $(2.8) | | **Current year Net Sales (Q1 2022)** | **$382.8** | - Gross profit increased by $11.6 million, as favorable pricing of $58.3 million and volume of $2.7 million were partially offset by **$47.9 million in higher manufacturing costs** due to inflation[131](index=131&type=chunk) [Segment Operating Results](index=28&type=section&id=Segment%20Operating%20Results) Both the Performance Materials and Performance Chemicals segments reported increased sales and EBITDA, driven by pricing and volume - **Performance Materials:** Net sales increased **5.5% to $148.4 million**, and Segment EBITDA increased **5.7% to $77.9 million**, driven by process purification products[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) - **Performance Chemicals:** Net sales grew **30.5% to $234.4 million**, and Segment EBITDA increased **29.6% to $41.1 million**, driven by strong pricing and solid demand[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk)[150](index=150&type=chunk) [Current Company Outlook](index=31&type=section&id=Current%20Company%20Outlook) Ingevity raised its full-year 2022 guidance for sales to $1.525-$1.65 billion and adjusted EBITDA to $430-$470 million 2022 Full-Year Guidance | Metric | Guidance (in millions) | | :--- | :--- | | Net sales | $1,525 - $1,650 | | Adjusted EBITDA | $430 - $470 | | Operating Cash Flow | $305 - $325 | | Capital Expenditures | $155 - $175 | - The guidance assumes continued impacts from global logistical headwinds, geopolitical uncertainty, significant cost inflation, and the microchip shortage affecting the automotive supply chain[160](index=160&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity through cash from operations and its revolving credit facility, with $40.4 million in share repurchases in Q1 - Primary liquidity sources are cash flow from operations, **cash on hand ($222.6 million at quarter-end)**, and an available **revolving credit facility of $497.5 million**[163](index=163&type=chunk)[164](index=164&type=chunk) - In Q1 2022, the company repurchased 610,447 shares of its common stock for **$40.4 million**, with **$262.2 million remaining available** under the share repurchase authorization[167](index=167&type=chunk)[86](index=86&type=chunk) - Projected capital expenditures for 2022 are between **$155 million and $175 million**[168](index=168&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to foreign currency and interest rate risks, which are partially mitigated through derivatives - A hypothetical **10% adverse change** in the average Chinese renminbi and euro to U.S. dollar exchange rates would have decreased net sales by approximately **$5.1 million (1%)** for Q1 2022[181](index=181&type=chunk) - A hypothetical **100 basis point increase** in the variable interest rate on **$323 million of borrowings** would increase annual interest expense by about **$3.2 million**[182](index=182&type=chunk)[183](index=183&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were effective as of March 31, 2022, amid an ongoing global ERP system implementation - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of March 31, 2022[186](index=186&type=chunk) - The company is implementing a new global ERP system, with the pilot deployment occurring in Q1 2022; changes to internal controls will be considered as the implementation progresses[188](index=188&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) Details on legal proceedings, primarily the BASF litigation, are referenced in Note 14 of the financial statements - Information regarding legal proceedings is detailed in Note 14 – Commitments and Contingencies within the Condensed Consolidated Financial Statements[191](index=191&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported for the quarter ended March 31, 2022 - **No material changes** in Ingevity's risk factors were reported for the quarter ended March 31, 2022, from those disclosed in the 2021 Annual Report[192](index=192&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2022, the company repurchased 610,447 shares for $40.4 million, with $262.2 million remaining under its repurchase authorization Issuer Purchases of Equity Securities (Q1 2022) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | January 2022 | 248,510 | $72.20 | | February 2022 | 31,937 | $64.44 | | March 2022 | 330,000 | $61.96 | | **Total** | **610,447** | **-** | - As of March 31, 2022, approximately **$262.2 million remained available** for purchase under the company's stock repurchase program[194](index=194&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including management contracts, certifications, and Inline XBRL documents - Exhibits filed include management contracts, CEO/CFO certifications (Rule 13a-14(a)/15d-14(a) and Section 1350), and XBRL data files[198](index=198&type=chunk)

Financial Data and Key Metrics Changes - Company achieved a revenue growth of 14% year-over-year and a 3% increase in Q4 compared to the previous year, driven by robust volumes in Performance Chemicals despite a decline in Performance Materials automotive emission products [7][15] - Adjusted EBITDA reached a record $422 million with an adjusted EBITDA margin of 30.3%, reflecting a compound annual growth rate of over 20% since 2016 [16][17] - Free cash flow was down compared to 2020 but increased by more than 17% from 2019, with net debt to adjusted EBITDA reduced to 2.2x from 2.5x at year-end 2020 [18] Performance by Business Segment - Performance Chemicals segment saw a revenue increase of 24% in Q4 and for the full year, with sales reaching $204 million and $875 million respectively, driven by strong demand and price increases [20] - Performance Materials segment experienced an 18% decline in Q4 sales to $132 million due to ongoing microchip shortages affecting automotive production, although full-year sales were slightly up due to price increases [26][28] Market Data and Key Metrics Changes - North American vehicle production ended 2021 at 13 million, with IHS forecasting 15.2 million for 2022, indicating a cautious outlook due to ongoing microchip shortages [54] - The company noted that the automotive industry is directing limited microchip volumes to more profitable vehicles, which benefits Ingevity's product mix [27] Company Strategy and Industry Competition - Company is focused on leveraging operational excellence to gain market share, particularly in adhesives, where significant share gains were reported [11][77] - Strategic investments in growth initiatives, including new product launches and alternative fatty acid production, are expected to drive future sales growth [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate supply chain challenges and inflationary pressures, with expectations for revenue growth in Performance Chemicals and a cautious outlook for Performance Materials due to microchip supply constraints [30][31] - The company plans to continue investing in growth while returning capital to shareholders, with guidance for 2022 sales between $1.525 billion and $1.6 billion and adjusted EBITDA between $430 million and $460 million [30] Other Important Information - The company improved its ESG ratings and increased the number of USDA certified bio-based products in its portfolio by 50% [13] - Management highlighted the successful introduction of new products in the Pavement Technologies segment, achieving its 10th consecutive year of sales growth [23] Q&A Session Summary Question: Revenue mix in Engineered Polymers and margin expectations - Management indicated a continued focus on driving derivative sales in Engineered Polymers, with expectations for a favorable mix [37] Question: Pricing and inflation outlook for Performance Materials - Management confirmed that significant price increases were implemented and more pricing adjustments are expected in 2022 to offset inflation [60] Question: Auto unit sales expectations for 2022 - Management referenced IHS forecasts of 15.2 million vehicles for 2022, with a focus on North America's highest value market [54] Question: Exposure to Eastern Europe and conflict impacts - Management noted that Eastern Europe accounts for only 4% of sales, indicating limited direct impact from the situation in Ukraine [55] Question: Update on regulatory growth in Brazil and Euro 7 mandate - Management expressed confidence in regulatory growth in Brazil and provided updates on the Euro 7 mandate timeline [57] Question: Share gains in adhesives - Management highlighted significant market opportunities in adhesives, particularly in road striping and packaging, with expectations for continued growth [77]

Financial Performance - Full Year 2021 net sales reached $1391.5 million, a 14.4% increase compared to $1216.1 million in 2020[15] - Full Year 2021 adjusted EBITDA was $422.2 million, a 6.1% increase compared to $397.9 million in 2020[15] - Q4 2021 net sales increased by 3.2% to $336.0 million from $325.6 million in Q4 2020[15] - Q4 2021 adjusted EBITDA decreased by 28.2% to $79.6 million from $110.9 million in Q4 2020[15] - The company repurchased over 1.4 million shares for a total of $109 million[24] Segment Performance - Performance Chemicals' Q4 2021 net sales were $204.0 million, a 23.7% increase year-over-year, and full year sales were $874.7 million, up 23.9%[26] - Performance Materials' Q4 2021 net sales were $132.0 million, a decrease of 17.9% year-over-year, while full year sales were $516.8 million, up 1.3%[28] - Engineered Polymers sales increased by 22% in Q4 and 46% in FY due to increased global volumes and higher selling prices[27] - Industrial Specialties sales increased by 28% in Q4 and 26% in FY driven by growth in adhesives, TOFA, dispersants and oilfield markets[27] 2022 Guidance - The company projects revenue between $1525 million and $1600 million for FY 2022[31] - Adjusted EBITDA is expected to be between $430 million and $460 million for FY 2022[31]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________________________ FORM 10-K ______________________________________________________________________________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 2 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SE ...

Q3 2021 Performance Highlights - Net sales increased by 13.6% to $376.8 million, compared to $331.7 million in Q3 2020[7] - Adjusted EBITDA decreased by 6.3% to approximately $120 million, with the adjusted EBITDA margin down 680 bps to 31.7%[6, 7] - Performance Materials segment was negatively impacted by depressed automotive production due to the global microchip shortage, while Engineered Polymers and Industrial Specialties showed strong growth[6] Segment Performance - Performance Chemicals sales increased by 37.7% to $258.7 million, driven by strong demand in Engineered Polymers and Industrial Specialties[10, 11] - Engineered Polymers sales increased by 109.1% to $52.9 million[11] - Industrial Specialties sales increased by 47.1% to $132.5 million[11] - Performance Materials sales decreased by 17.9% to $118.1 million due to lower automotive production[14, 15] - Performance Chemicals segment EBITDA increased by 33.7% to $63.1 million[10, 11] - Performance Materials segment EBITDA decreased by 29.9% to $56.4 million[14, 15] Financial Metrics - Free cash flow for the quarter was $75 million, enabling $32 million of share repurchases at an average price of $77.79[26] - Year-to-date share repurchases totaled $100 million (1.3 million shares) at an average price of $77.26[26] - Net debt ratio was maintained at 2.1x, within the target range of 2.0x-2.5x[26] Full Year 2021 Guidance - Revenue is projected to be between $1.32 billion and $1.36 billion[30] - Adjusted EBITDA is projected to be between $405 million and $420 million[31] - Capital expenditures are expected to be between $100 million and $115 million[32] - Free cash flow is expected to be greater than $200 million[33] - Net debt ratio is expected to be between 2.0x and 2.5x[34]

Ingevity Corporation (NYSE:NGVT) Q3 2021 Earnings Conference Call October 28, 2021 10:00 AM ET Company Participants Bill Hamilton - Treasurer & Head of Investor Relations John Fortson - President & Chief Executive Officer Mike Smith - President of Performance Chemicals Ed Woodcock - President of Performance Materials Mary Hall - Chief Financial Officer Conference Call Participants Jon Tanwanteng - CJS Securities Daniel Rizzo - Jefferies Vincent Anderson - Stifel Ian Zaffino - Oppenheimer. Paretosh Misra - B ...