Slide 1: Q4 2023 Earnings
Q4 2023 Earnings February 2024 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. S
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures The information presented in this presentation includes financial measures that are not calculated or presented in accordance with Generally Accepted Accounting Principles in the United States (GAAP). These non-GAAP financial measures comprise EBITDA, income before
Slide 4: Earnings Conference Call Agenda
Earnings Conference Call Agenda Introduction 1 David Jones - VP, General Counsel Business Commentary 2 Patrick S. Williams - President & CEO Financial Performance 3 Ian Cleminson - Executive Vice President & CFO Questions & Answers 4 Patrick S. Williams and Ian Cleminson ©2024 Innospec Inc. 4
Slide 5: Summary of 4th Quarter Performance
Summary of 4th Quarter Performance GAAP EPS of $1.51 QGP acquisition closed $72.4 million cash flow Q4 in the quarter from operations Adjusted non-GAAP EPS of $1.84 Excellent fit with $203.7 million in net Performance Chemicals cash on balance sheet after 10 percent Diversified assets with dividend
Slide 6: Financial Performance
Financial Performance innospec’>
Slide 7: Q4 2023 Consolidated Results
Q4 2023 Consolidated Results ($ MM) • Sales down 3 percent • Gross margin up 1.8 percentage points • Operating income down 5 percent • EBITDA down 1 percent • Adjusted EPS increases 53% to $1.84 Q4 2022 Q4 2023 ©2024 Innospec Inc. 7
Slide 8: Q4 2023 Performance Chemicals
Q4 2023 Performance Chemicals ($ MM) • Sales down 5 percent • Price/mix down 14 percent • Volumes up 6 percent • Gross margin up 2.9 percentage points • Operating income up 14 percent Q4 2022 Q4 2023 ©2024 Innospec Inc. 8
Slide 9: Q4 2023 Fuel Specialties
Q4 2023 Fuel Specialties ($ MM) • Sales down 1 percent • Price/mix down 4 percent • Volumes flat • Gross margin up 5.1 percentage points • Operating income up 22 percent • Full year operating income up 3 percent excluding impact of Brazil Q4 2022 Q4 2023 ©2024 Innospec Inc. 9
Slide 10: Q4 2023 Oilfield Services
Q4 2023 Oilfield Services ($ MM) • Sales down 4 percent • Gross margin down 2.4 percentage points • Operating income down 11 percent • Full year sales up 16% and operating income increased 88% Q4 2022 Q4 2023 ©2024 Innospec Inc. 10
Slide 11: Q4 2023 Corporate Items
Q4 2023 Corporate Items ($ MM) • Corporate costs up versus prior year on additional remediation charges and acquisition related costs • Full year adjusted effective tax rate of 23.0 percent • Expected full year effective tax rate around 25.0 percent in 2024 Q4 2022 Q4 2023 ©2024 Innospec Inc. 11
Slide 12: Q4 2023 Balance Sheet
Q4 2023 Balance Sheet ($ MM) • Operating cash flow of $72.4 million • Net cash balance of $203.7 million after funding 10 percent increase in dividend and closing QGP acquisition Q4 2022 Q4 2023 ©2024 Innospec Inc. 12
Slide 13: Concluding Comments
Concluding Comments innospec’>
Slide 14: Summary of 4th Quarter Performance
Double-digit operating income growth and margin improvement in Summary of Performance Chemicals and Fuel Specialties 4 Quarter th Further sequential improvement in Performance Chemicals Performance Continued excellent results in Oilfield Services QGP acquisition completed; Strong fit with Performanc
Slide 15: Q&A
Q&A 2/13/2024 ©2024 Innospec Inc.
Slide 16: Final Comments
Final Comments May 2024 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Thank You for Your 19 26 20 27 19 28 22 29 23 30 24 31 25 Continued Support Q1 2024 Results Schedule • May 9th – Results Release After Close • May 10th – Conference Call ©2024 Innospec Inc. 16