Ingersoll Rand Inc.

Thank you all for standing by. I would like to welcome you all to the Ingersoll Rand Q4 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. And after the speaker's remarks, we will conduct a question and answer session. To ask a question at this time, please press star followed by one on your telephone keypad. If you do change your mind at any time, please press star then two to remove your question. And for operator assistance at any time, please press the star zero key. Thank you. I would now like to turn the conference call over to our host, Matthew Fort, to begin. So, Matthew, please go ahead.

Thank you, and welcome to the Ingersoll Rand 2022 Fourth Quarter Earnings Call. I am Matthew Fort, Vice President of Investor Relations, and joining me this morning are Vicente Rinal, Chairman and CEO, and Dick Kinney, Chief Financial Officer. We issued our earnings release and presentation this morning and we will reference these during the call. Both are available on the investor relations section of our website. In addition, a replay of this conference call will be available later today. Before we start, I want to remind everybody that certain statements on this call are forward-looking in nature and subject to the risks and uncertainties discussed in our previous SEC filings, which you should read in conjunction with the information provided on this call. Please review the forward-looking statements on slide two for more detail. In addition, in today's remarks, we will refer to certain non-GAAP financial measures. You can find a reconciliation of these measures to the most comparable measure calculated and presented in accordance with GAAP and our slide presentation and in our earnings release, both of which are available on the investor relations section of our website. On today's call, we will review our company and segment financial highlights and provide 2023 guidance. For today's Q&A session, We ask that each caller keep to one question and one follow-up to allow for time for other participants. At this time, I will turn the call over to the center.

Thanks, Matthew, and good morning to all. I would like to start by acknowledging and thanking our employees for their hard work in helping us deliver a record year in 2022. We finished the year on a high note, with strong fourth quarter and full year results, despite ongoing inflation, rising interest rates, supply chain constraints, and geopolitical uncertainty. Our employees consistently exemplify our purpose while thinking and acting like owners to deliver on our commitments. And our performance this year clearly reinforces the impact we have as owners of Ingersoll Run. Starting on slide three, in 2022, we demonstrated again how we continue to over deliver on our investor-based commitments. We also made tremendous progress against our sustainability goals, and I am very proud that Ingersoll Rand was named to the 2022 Dow Jones Sustainability Index. As we look to 2023, the mind remains solid, and while microeconomic, geopolitical, and global supply chain uncertainties continue to be at the top of everyone's mind, we will remain agile and focused on what we can control. IRX is our differentiator to fuel our performance and continue to execute on our commitments. Turning to slide four, during our last Investor Day, we highlighted how we delivered compounding results through our economic growth engine. We remain committed to our strategy, and its success is evident, given the results outlined at the bottom of this page. Our portfolio is positioned to capitalize on global megatrends, such as digitization, sustainability, and quality of life. We expect to leverage our organic growth enablers to deliver mid-single-digit organic growth through 2025. And as you can see, we outperformed this commitment again in 2022, delivering 16% year-over-year organic revenue growth. In 2022, we delivered 4% of in-year growth from M&A, or 5% on an annual basis. A combined organic growth and inorganic growth of 20% are surpassed our low double-digit growth commitments. As we look to 2023 and beyond, we reaffirm our commitment to deliver total average growth of no double digits through 2025. Our strong organic growth levers of aftermarket, demand generation, as well as our I2V initiatives will enable us to generate operating leverage and incremental productivity with an expected 100 basis points of adjusted EBITDA margin improvement per year on average. With IRX, of our competitive differentiator and over 300 impact daily management or IVMs across our company each week, our high-performing culture encourages a strong focus on execution. This continues to support our goal of being a premier company that consistently compounds earnings on average by double digits each year. In 2022, we continue to achieve that goal with adjusted EPS growth of 13%. Moving to slide five, In 2022, we saw strong organic order and revenue growth of 11% and 16% respectively. Aftermarket continues to be a strategic focus, and we deliver growth of 17% excluding effects. Our 120 basis points of adjusted EBITDA margin expansion was driven in part by improvement in our growth margin due to pricing, aftermarket revenue growth, and ITV actions. As we continue to align our business Through the mega growth trends, we formalized our IR digital team to accelerate how we create new revenue streams. It's important to note that this is an incremental investment we made in addition to the teams that reside at the business level. With 90% of our total revenue coming from IIoT-ready products, we have already exceeded our 2023 investor day target. On the right side of the page is a great example of our ability to deliver organic growth by focusing on the sustainability and efficiency megatrend. We were selected to be a critical technology provider for what will be the largest carbon capture and storage project in the world when it comes online in 2024, with a capacity to permanently capture and store 12 million tons of carbon dioxide gas every year. This one project will deliver more than $14 million of revenue for Ingersoll Rand between 2023 and 2024. On slide six, M&A continues to be at the forefront of our capital allocation trends. We invested over $800 million in 12 acquisitions in 2022, including the SPX flow transaction, with the annualized revenue from these acquisitions being approximately $300 million. These acquisitions have added both market-leading products and technologies while accelerating our addressable market with close adjacencies. Our M&A funnel remains strong, and as of today, it continues to be over five times larger than it was at the time of the R&D. And more importantly, we currently have 11 transactions under LOI. We expect an additional $200 to $300 million in annualized inorganic revenue to be acquired in 2023. Finally, we started the year well. with regards to executing on our inorganic strategy with the recently completed acquisition of Pyramid Tank Truck, a leading provider of solutions used for loading and unloading light work and liquid tanks in demanding industrial environments as well as wood and garbage. Moving to slide seven, we have some exciting news to share. We achieved placement on the DGSI World and DGSI North America indices. Our score of 81 on the S&P Global Corporate Sustainability Assessment puts us at the number one in North America and number four in the world within our industry, which means that we are in the top decile of global companies. This is a perfect example of how we leverage IRX for agile execution across all aspects of our business. In this case, we use our own IRX execution process to go from being unranked to now in the top 10% of all companies reviewed by S&P Global. I will now turn the presentation over to Vic to provide an update on our Q4 and full year 2022 financial performance.