Ingersoll Rand : 2023 Annual Report

Compounding growth

Unlocking potential through execution

2023 Annual Report

Contents

Introduction 02	Strategy in Action: Lead Sustainably 11
Letter to Shareholders 03	Strategy in Action: Expand Margins 12
2023 in Numbers 05	Strategy in Action: Allocate Capital Effectively 13
Economic Growth Engine 06	Leadership 14
Segment Overviews 07	2023 Annual Report on Form 10-K
Strategy in Action: Deploy Talent 09	Reconciliation of GAAP Measures to Non-GAAP Measures Annex A
Strategy in Action: Accelerate Growth 10	Corporate Information Back Cover

INTRODUCTION

Welcome to Ingersoll Rand's

2023 Annual Report. Compounding growth. Unlocking potential through execution.

80+ brands. 18,000+ employees.

A commitment to ownership. We're on a journey to solve the industry's most difficult problems, and we're just getting started.

Compounding	Unlocking	Execution
Growth	Potential	Excellence

Ingersoll Rand Inc. (NYSE: IR), driven by an entrepreneurial spirit and ownership mindset, is dedicated to Making Life Better for our employees, customers, shareholders, and planet.

Customers lean on us for exceptional performance and durability in mission-critical flow creation and industrial solutions. Supported by over 80 respected brands, our products and services excel in the most complex and harsh conditions.

Our employees develop customers for life through their daily commitment to expertise, productivity, and efficiency.

For more information, visit www.IRCO.com.

02

LETTER TO SHAREHOLDERS

Our Purpose

Lean on us to help you make life better is deeply embedded in all that we do. We wake up each and every day with the goal of Making Life Better for our employees, our customers, our shareholders,

and our planet.

For our	For our
Employees	Customers

For our	For our
Shareholders	Planet

Vicente Reynal

Chairman and

Chief Executive Officer

Through innovation, ownership, and execution excellence

Dear Shareholders, we want you to lean on us to make life better, and our 2023 results show how much value we bring to our employees, customers, shareholders, and planet.

Change may be a constant, but our strategic imperatives remain the same: Deploy Talent, Accelerate Growth, Lead Sustainably, Expand Margins, and Allocate Capital Effectively. With our competitive differentiators - Ingersoll Rand Execution Excellence (IRX) and our ownership mindset - guiding everything we do, the future is bright.

Last year, we delivered value to shareholders through

record financial performance, with revenue of $6.9 billion, Adjusted EBITDA of $1.8 billion, and an impressive Adjusted EBITDA margin of 26%, which was an expansion of 170 basis points over 2022.1 We also generated record Free Cash Flow of $1.3 billion with a Free Cash Flow margin of 18%, providing the means to compound growth

and unlock new heights in our performance.1,2 These numbers are a testament to the dedication of

our more than 18,000 global employees. They uphold

a commitment to embody an ownership mindset and create a culture that drives operational excellence.

I am extremely proud of our performance.

Confidence in delivering our long-term financial targets:

	2025 Targets	On Track	New 2027
	(2021 Investor Day)	to Deliver	Targets
Total	Low-Double		Low-Double
Revenue	Digits (2021-		Digits (2023-
Growth	2025 CAGR)		2027 CAGR)
	Mid-Single		Mid-Single
Organic1	Digits (2021-		Digits (2023-
	2025 CAGR)		2027 CAGR)
	Mid-Single		Mid-Single
Inorganic	Digits (2021-		Digits (2023-
	2025 CAGR)		2027 CAGR)
Adjusted
EBITDA	High 20s		28-30%
Margin1
Adjusted	Double Digits		Double
Diluted EPS	(2021-2025		Digits (2023-
Growth1	CAGR)		2027 CAGR)
Free Cash
Flow	High Teens		~20%
Margin1,2
Net Debt	<2x		<2x
Leverage3
IloT-Ready	>25%		>30%
Products4

03

For our Employees

In 2023, we granted equity to more than 1,800 employees through our Ownership Works equity program. Ingersoll Rand provides equity grants to all employees, whether they join as new hires or via acquisition, after one year of service.5 Ingersoll Rand has provided equity grants to over 21,000 employees since May 12, 2017. The value of our total Ownership Works, Merger, and IPO equity grants if held through December 31, 2023, would total approximately $790 million, with a 181% average grant appreciation value.6 This initiative has empowered our employees, creating economic opportunities for them and their families.

Our success depends on our employees. We nurture and celebrate a culture that embraces diverse points of view, backgrounds, and experiences, believing that it leads to inspired teams. Our latest employee survey backs up this belief, indicating our employee satisfaction ranks in the top 10 percent amongst industrial manufacturing companies and surpasses industry benchmarks by 600 basis points.7 Our continually strong employee engagement is driven by our ownership mindset and our employees' perspective that Ingersoll Rand is "my company." Additionally, our unwavering commitment to ownership has enabled our employees to cultivate strong customer relationships, driving them to solve the industry's most difficult problems.

For our Customers

When customers need help achieving their sustainability goals, they increasingly turn to Ingersoll Rand. We help them meet those outcomes by advancing their Scope 1 and 2 greenhouse gas reduction goals and by supporting water and waste reduction. Those results are driven by our innovative products and services that offer efficiency, circularity, and sustainability.

Additionally, our mergers and acquisition strategy has positioned us to better meet the needs of our customers. In 2023, Ingersoll Rand strategically invested approximately $450 million across 13 acquisitions, including Roots, Ecoplant, and Paragon Tank Truck Equipment. We are proud to be a supplier of choice for our customers. Through our acquisitions, we can serve them more effectively by expanding our product offerings, geographic reach, and technological capabilities.

Our 2023 acquisitions, which are expected to generate more than $200 million in annualized revenue in 2024, continue to position our portfolio toward high-growth, sustainable end markets.8 While we have made great progress to date, we believe that we are just getting started on this journey.

For our Shareholders

Our dedication to consistent performance translates into value delivered to our shareholders. Over the past six years, we have delivered a remarkable 267% total shareholder return and added more than $31 billion in market capitalization to our company. In 2023 alone, Ingersoll Rand delivered a 46% total shareholder return. Our performance to date, combined with our Economic Growth Engine, gives us the confidence to deliver on the new 2027 targets announced at our Investor Day in November 2023.

For our Planet

In addition to supporting our customers and their sustainability goals, we are working hard to achieve our own goals. We are making strides toward our 2030 and 2050 environmental goals. We are proud to report we have achieved our water reduction goal in 2023, seven years ahead of our target.

We remain on track to meet all of our environmental commitments. Our inclusion in the Dow Jones Sustainability World Index and Dow Jones Sustainability North America Index, with an impressive score of 81 on the S&P Global Corporate Sustainability Assessment, positions us at No.1 globally and No.1 in North America within our industry.9

Our commitment to corporate responsibility is also reflected through our ongoing efforts to positively influence the communities we serve. Striving to enhance the lives of those in the Charlotte, North Carolina area, we have developed strong relationships with FeedNC and La Escuelita, while our nationwide initiatives include an alliance with the American Heart Association, working hand in hand to combat cardiovascular diseases. Our global outreach extends to Uganda, where our donated compressors have revolutionized Drop in the Bucket's well-drilling process, transforming it from a days-long endeavor to mere hours. In India, our collaboration with Planet Water Foundation has brought the innovation of our non-electric pumps to the forefront, supplying clean drinking water to secluded villages. Fueled by a passion for community betterment, we are dedicated to making lasting contributions both locally and across the globe.

As you explore this report, you will obtain valuable insight into the strategic decisions propelling us forward as a premier growth compounder and the potential we are just beginning to unlock through execution excellence.

Sincerely,

Vicente Reynal

Chairman and Chief Executive Officer

• Non-GAAPmeasure (definitions and/or reconciliations in Annex A). 2 Free Cash Flow margin defined as Free Cash Flow/Revenue. 3 Calculated as Net Debt to LTM Adjusted EBITDA 4 Represents products with IIoT equipment installed. 5 Employees must be full-time and have one year of service to be eligible. Not available to employees who participate in the Company's management equity program or where prohibited by local law or regulation or where such grant is required to be bargained for with an employee union unless such grant is agreed to as part of such bargaining. 6 Calculated as the difference between the December 31, 2023 value of all Ownership Works grants, Merger grants, and IPO grants and their respective grant date value. Assumes all employees have held the grants through December 31, 2023. On February 29, 2020, Gardner Denver Holdings, Inc. closed on the merger with Ingersoll Rand plc's Industrial segment (the "Merger") and changed its name to Ingersoll Rand Inc. 7 Per Glint as compared to Industrial companies. 8 This figure excludes the acquisition of SPX Flow's Air Treatment business, which closed on January 2, 2023, and was included in our 2022 M&A metrics. 9 Receipt of

an S&P Global ESG Score does not represent a sponsorship, endorsement or recommendation on the part of S&P Global to buy, sell or hold any security and a decision to invest in any subject company	04
should not be made based on the receipt of any such note. S&P, S&P Global, and the S&P Global logo are trademarks of S&P Global Inc. or its subsidiaries, registered in many jurisdictions worldwide.

2023 IN NUMBERS

	Comparison of 5-year cumulative total return10
$400	Among Ingersoll Rand, the Russell 2000 Index,
the S&P 500 Index and the S&P 500 Industrials Index
$350
$300
$250
$200
$150
$100
$50
$0
12/18	12/19	12/20	12/21	12/22	12/23
	Ingersoll Rand		Russell 2000	S&P 500	S&P 500 Industrials

Ownership by the numbers

18,000+

Current Ingersoll

Rand employees

10%

Top 10%

in Engagement

+600 bps higher employee satisfaction vs. industry

81/100 81

S&P Global Corporate
Sustainability	100
Assessment score

~$790M

The approximate value of Ownership Works, Merger, and IPO equity grants if held through December 31, 202311

10 For every $100 invested as measured from December 31, 2018. 11 Calculated as the difference between the December 31, 2023 value of all Ownership Works

05 grants, Merger grants, and IPO grants and their respective grant date value. Assumes all employees have held the grants through December 31, 2023.

ECONOMIC GROWTH ENGINE

Our Economic Growth Engine continues to deliver compounding annual results

Megatrends

Sustainability

Digitization

Quality of Life

				Target
Organic				Organic
Growth	Demand	IIoT	Product & Service	Revenue Growth:12
Enablers	Mid-Single Digits
	Generation		Innovation
		+
Inorganic				Inorganic
Growth	Product and	Technology	Revenue Growth:
Enablers	Mid-Single Digits
Service M&A	Investments
		+
				Adj. EBITDA
Quality of				Margin
Earnings	Aftermarket	Price	i2v	Expansion:12
	~100 bps/yr.

x

High Performance	Competitive Differentiators:
Execution Process	IRX
Our Employee Ownership Mindset

=

Premier Growth Compounder

Double Digit Earnings Growth

High Teens Free Cash Flow Margin

2021	2022		2023
	YoY Improvement
12%	16%		10%
In Year Growth
	4%
	In Year Growth
4%	4%		6%

YoY Improvement

160 bps

120 bps

170 bps

	IDMS Per Week13
~275	~300	~400

	ADJ. EPS12 Growth
63%	13%	25%
	FCF Margin12,14
16%15	13%	18%

12	Non-GAAP measure (definitions and/or reconciliations in Annex A). 13 IDM defined as Impact Daily Management.
14	Free cash flow margin defined as Free Cash Flow/Revenue. 15 Based on Adjusted Free Cash Flow for 2021 (definitions and/or reconciliations in Annex A).	06

SEGMENT OVERVIEW

Industrial Technologies

& Services (IT&S)

Broad range of compressor, vacuum,	Recent acquisitions
and blower solutions as well as
industrial technologies, including
power tools and lifting equipment.

Key brands

Precision & Science

Technologies (P&ST)

Highly specialized fluid management	Recent acquisitions
solutions including precision
liquid and gas pumps and niche
compression technologies.

Key brands

07

Industrial Technologies & Services revenue

										9%
							t	3
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E
M
E
I
A	2%
3

Eq
ui
p
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e
n
	t
	6
	1
	%
A
m
e
r
i
c
a
s
4
8
	%

Revenue $5,633m

Adj. EBITDA $1,587m

Adj. EBITDA Margin 28%

Precision & Science Technologies revenue

										0%
								t	2
						e
				k
				r
				a
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		r
	e
t
f
A											%
										4
									1
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					A
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				A

E
M
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I
A
3	8%

Eq
ui
p
m
e
n
t
	8
	0
	%
A
m
e
r
i
c
a
s
4
8
%

Revenue

$1,243m

Adj. EBITDA

$373m

Adj. Margin 30%

08

STRATEGY IN ACTION

Deploy

Talent

At Ingersoll Rand, we are committed to building a strong employee experience and ensuring employees are given the tools and opportunities needed to learn and grow.

We believe in the power of employee ownership and have seen how our Ownership Works equity program has transformed our workforce. It has provided wealth- building opportunities for employees and their families, has fueled workplace productivity, and has helped us build one of the most engaged workforces in the industry.

Our people are our company's most important resource, and investing in their growth is critical to our long-term success. That's why we developed our Talent Review Excellence (TRX) model, an annual process of assessing talent against performance, potential, and competencies and identifying potential successors for critical roles. We have placed a strong emphasis on individual development plans tied to specific, measurable, time-bound actions, and learning to drive improvement. These actions not only offer career advancement opportunities for our employees but also ensure strong internal succession and retention of top talent.

As part of our talent development program, we have worked to ensure company-wide access to world-class learning opportunities through our Women's Leadership Development Program and Lead Like an Owner program. In addition, LinkedIn Learning officially launched in 2023 to all employees, and our results for the year surpass the combined learning achievements from 2020 to 2022.

Because of the investments we have made in our employees, we continue to receive external recognition for being a great place to work. U.S. News and World Report named

us as one of the best companies to work for in the Industrials and Business Services sector. Other accolades include receiving Great Place to Work certification in Brazil, Chile, Colombia, and Mexico, a Brandon Hall Group Silver award for employee learning and development, and the "Employer Excellence of China" award.

We are passionate about solidifying and advancing the development of our company culture by increasing diversity of talent, supporting navigation of career paths, and ensuring equal opportunities while fostering a sense of belonging.

A snapshot of employee

learning and development in 2023

21,300+ hours of

content viewed

370,000+ learning videos watched

1,600+ courses completed in alignment with an employee's career goals

09