Slide 1: Q1 2024 Earnings
Q1 2024 Earnings May 2024 innospec’>
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 adjusted EBITDA, inco
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 1st Quarter Performance
Summary of 1st Quarter Performance Q1 GAAP EPS of $1.65 Excellent performance Balance sheet has across all our $270.1 million in net Adjusted non-GAAP businesses cash EPS of $1.75 Operating income up 23 Continued capital percent allocation flexibility Performance Chemicals Fuel Specialties steady Oi
Slide 6: Financial Performance
Financial Performance innospec’>
Slide 7: Q1 2024 Consolidated Results ($ MM)
Q1 2024 Consolidated Results ($ MM) • Sales down 2 percent • Gross margin up 2.1 percentage points • Operating income up 23 percent • Adjusted EBITDA up 21 percent • Adjusted EPS of $1.75 Q1 2023 Q1 2024 ©2024 Innospec Inc. 7
Slide 8: Q1 2024 Performance Chemicals ($ MM)
Q1 2024 Performance Chemicals ($ MM) • Sales up 6 percent • Acquisition growth of 6 percent • Price/mix down 14 percent • Volumes up 13 percent • Gross margin up 7.5 percentage points • Operating income approximately doubled Q1 2023 Q1 2024 ©2024 Innospec Inc. 8
Slide 9: Q1 2024 Fuel Specialties ($ MM)
Q1 2024 Fuel Specialties ($ MM) • Sales down 7 percent • Price/mix down 6 percent • Volumes down 2 percent • Gross margin up 4.1 percentage points • Operating income up 3 percent Q1 2023 Q1 2024 ©2024 Innospec Inc. 9
Slide 10: Q1 2024 Oilfield Services ($ MM)
Q1 2024 Oilfield Services ($ MM) • Sales down 3 percent • Gross margin down 4.2 percentage points on weaker sales mix • Operating income up 6 percent • Expecting materially lower Q2 production chemicals activity • Cautiously optimistic that operating income run rates return to targeted $15 to $20 mi
Slide 11: Q1 2024 Corporate Items ($ MM)
Q1 2024 Corporate Items ($ MM) • Corporate costs up versus prior year on higher IT expenditure and performance-related remuneration • Effective tax rate of 25.1 percent Q1 2023 Q1 2024 ©2024 Innospec Inc. 11
Slide 12: Q1 2024 Balance Sheet ($ MM)
Q1 2024 Balance Sheet ($ MM) • Operating cash inflow of $80.6 million • Capital expenditures of $14.3 million • Net cash balance $270.1 million Q4 2023 Q1 2024 ©2024 Innospec Inc. 12
Slide 13: Concluding Comments
Concluding Comments innospec’>
Slide 14: Summary of 1st Quarter Performance
Strong operating performance in the quarter; Excellent Summary of contribution from all our businesses Further sequential improvement in Performance Chemicals; QGP 1 Quarter st acquisition performing in-line with expectations Performance Steady results in Fuel Specialties; Continued progress on marg
Slide 15: Q&A
Q&A 5/9/2024 ©2024 Innospec Inc.
Slide 16: Final Comments
Final Comments August 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 Thank You for Your 18 25 19 26 20 27 21 28 22 29 23 30 24 31 Continued Support Q2 2024 Results Schedule • August 6th – Results Release After Close • August 7th – Conference Call ©2024 Innospec Inc. 16