Slide 1: Q2 2024 Earnings
Q2 2024 Earnings August 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 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 2nd Quarter Performance
Summary of 2nd Quarter Performance Q2 GAAP EPS of $1.24 Fuel Specialties and Balance sheet has Performance Chemicals $240.2 million in net Adjusted non-GAAP deliver strong results cash EPS of $1.39 Operating income up 19 Continued capital percent allocation flexibility Performance Chemicals Fuel Spe
Slide 6: Financial Performance
Financial Performance innospec’>
Slide 7: Q2 2024 Consolidated Results
Q2 2024 Consolidated Results ($ MM) • Sales down 9 percent • Gross margin down 2.1 percentage points • Operating income up 19 percent • Adjusted EBITDA up 14 percent • Adjusted EPS of $1.39 Q2 2023 Q2 2024 ©2024 Innospec Inc. 7
Slide 8: Q2 2024 Performance Chemicals
Q2 2024 Performance Chemicals ($ MM) • Sales up 25 percent • Acquisition growth of 7 percent • Volumes up 29 percent • Price/mix down 11 percent • Gross margin up 5.4 percentage points • Operating income more than doubled Q2 2023 Q2 2024 ©2024 Innospec Inc. 8
Slide 9: Q2 2024 Fuel Specialties
Q2 2024 Fuel Specialties ($ MM) • Sales up 8 percent • Volumes up 20 percent • Price/mix down 12 percent • Gross margin up 5.5 percentage points • Operating income up 78 percent Q2 2023 Q2 2024 ©2024 Innospec Inc. 9
Slide 10: Q2 2024 Oilfield Services
Q2 2024 Oilfield Services ($ MM) • Sales down 45 percent • Gross margin down 11.5 percentage points on weaker sales mix • Operating income down 74 percent • Lower sales levels will persist through the third quarter and possibly through the remainder of the year Q2 2023 Q2 2024 ©2024 Innospec Inc. 10
Slide 11: Q2 2024 Corporate Items
Q2 2024 Corporate Items ($ MM) • Corporate costs down to $17.6 million • Effective tax rate of 28.6 percent • Full year tax rate expected to be 27 percent Q2 2023 Q2 2024 ©2024 Innospec Inc. 11
Slide 12: Q2 2024 Balance Sheet
Q2 2024 Balance Sheet ($ MM) • Operating cash inflow of $4.7 million • Capital expenditures of $15.2 million • Net cash balance of $240.2 million Q4 2023 Q2 2024 ©2024 Innospec Inc. 12
Slide 13: Concluding Comments
Concluding Comments innospec’>
Slide 14: Summary of 2nd Quarter Performance
Strong results in Fuel Specialties and Performance Chemicals; Summary of Overall 19 percent operating income growth Further improvement in Performance Chemicals; QGP acquisition 2 Quarter nd performing in-line with expectations Performance Double digit operating income growth in Fuel Specialties; Co
Slide 15: Q&A
Q&A 8/6/2024 ©2024 Innospec Inc.
Slide 16: Final Comments
Final Comments November 2024 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Thank You for Your 17 24 18 25 19 26 20 27 21 28 22 29 23 30 Continued Support Q3 2024 Results Schedule • November 5th – Results Release After Close • November 6th – Conference Call ©2024 Innospec Inc. 16