Slide 1: Q1 2023 Earnings
Q1 2023 Earnings May 2023 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 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 ©2023 Innospec Inc. 4
Slide 5: Summary of 1st Quarter Performance
Summary of 1st Quarter Performance Q1 GAAP EPS of $1.33 Revenues up 8 percent Balance sheet has $147.5 million in net Adjusted non-GAAP Strong operating results cash EPS of $1.38 from balanced portfolio Performance Chemicals Fuel Specialties $7.4 Oilfield Services softer activity as million inventor
Slide 6: Financial Performance
Financial Performance innospec’>
Slide 7: Q1 2023 Consolidated Results ($ MM)
Q1 2023 Consolidated Results ($ MM) • Sales up 8 percent • Gross margin down 0.5 percentage points • Operating income down 7 percent • EBITDA down 9 percent • Adjusted EPS of $1.38 Q1 2022 Q1 2023 ©2023 Innospec Inc. 7
Slide 8: Q1 2023 Performance Chemicals ($ MM)
Q1 2023 Performance Chemicals ($ MM) • Sales down 9 percent • Price/mix up 6 percent • Volumes down 13 percent • Gross margin down 8.5 percentage points • Operating income down 59 percent Q1 2022 Q1 2023 ©2023 Innospec Inc. 8
Slide 9: Q1 2023 Fuel Specialties ($ MM)
Q1 2023 Fuel Specialties ($ MM) • Sales relatively flat • Price/mix up 22 percent • Volumes down 20 percent • Gross margin down 1.4 percentage points • Operating income down 9 percent • $7.4 million inventory misappropriation impacted results Q1 2022 Q1 2023 ©2023 Innospec Inc. 9
Slide 10: Q1 2023 Oilfield Services ($ MM)
Q1 2023 Oilfield Services ($ MM) • Sales up 48 percent • Gross margin up 6.2 percentage points • Strong EBITDA and operating income growth Q1 2022 Q1 2023 ©2023 Innospec Inc. 10
Slide 11: Q1 2023 Corporate Items ($ MM)
Q1 2023 Corporate Items ($ MM) • Corporate costs down versus prior year on lower share-based compensation accruals • Effective tax rate of 26.2 percent Q1 2022 Q1 2023 ©2023 Innospec Inc. 11
Slide 12: Q1 2023 Balance Sheet ($ MM)
Q1 2023 Balance Sheet ($ MM) • Operating cash inflow of $21.8 million • Capital expenditure and software costs of $22.0 million • Net cash balance of $147.5 million Q4 2022 Q1 2023 ©2023 Innospec Inc. 12
Slide 13: Concluding Comments
Concluding Comments innospec’>
Slide 14: Summary of 1st Quarter Performance
Summary of Strong operating performance in the quarter 1 Quarter st Continued benefits from balanced portfolio Performance Adjusting for $7.4 million inventory misappropriation, strong operating income growth and steady margins in the quarter Focused on continued margin improvement in all businesses
Slide 15: Q&A
Q&A 5/4/2023 ©2023 Innospec Inc.
Slide 16: Final Comments
Final Comments August 2023 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 19 Thank You for Your 20 27 21 28 22 29 23 30 24 31 25 26 Continued Support Q2 2023 Results Schedule • August 8th – Results Release After Close • August 9th – Conference Call ©2023 Innospec Inc. 16