Slide 1: Q2 2022 Earnings
Q2 2022 Earnings August 2022 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 ©2022 Innospec Inc. 4
Slide 5: Summary of 2nd Quarter Performance
Summary of 2nd Quarter Performance Q2 GAAP EPS of $1.29 Volume and price/mix Performance Chemicals improvements drove operating income up 61 Adjusted non-GAAP double digit growth in percent EPS of $1.58 for the sales and operating second quarter income in all businesses Personal care is over 75 perc
Slide 6: Financial Performance
Financial Performance innospec’>
Slide 7: Q2 2022 Consolidated Results ($ MM)
Q2 2022 Consolidated Results ($ MM) • Sales up 32 percent on improved demand and pricing in all businesses • Gross margin down 0.7 percentage points • Significant operating income growth over prior year • Adjusted EPS of $1.58 Q2 2021 Q2 2022 ©2022 Innospec Inc. 7
Slide 8: Q2 2022 Performance Chemicals ($ MM)
Q2 2022 Performance Chemicals ($ MM) • Sales up 32 percent • Volumes up 6 percent • Gross margin up 1.2 percentage points • Operating income up 61 percent • EBITDA up 47 percent Q2 2021 Q2 2022 ©2022 Innospec Inc. 8
Slide 9: Q2 2022 Fuel Specialties ($ MM)
Q2 2022 Fuel Specialties ($ MM) • Sales up 23 percent • Volumes up 3 percent • Gross margin down 2.7 percentage points at the lower end of our expected range • Strong EBITDA and operating income growth Q2 2021 Q2 2022 ©2022 Innospec Inc. 9
Slide 10: Q2 2022 Oilfield Services ($ MM)
Q2 2022 Oilfield Services ($ MM) • Sales up 47 percent • Gross margins up 0.2 percentage points • Strong EBITDA and operating income growth Q2 2021 Q2 2022 ©2022 Innospec Inc. 10
Slide 11: Q2 2022 Corporate Items ($ MM)
Q2 2022 Corporate Items ($ MM) • Corporate costs up versus prior year on higher share-based compensation accruals • Adjusted effective tax rate of 22.8 percent Q2 2021 Q2 2022 ©2022 Innospec Inc. 11
Slide 12: Q2 2022 Balance Sheet ($ MM)
Q2 2022 Balance Sheet ($ MM) • Operating cash outflow of $7.5 million • Increased working capital • Net cash balance of $71.4 million Q4 2021 Q2 2022 ©2022 Innospec Inc. 12
Slide 13: Concluding Comments
Concluding Comments innospec’>
Slide 14: Summary of 2nd Quarter Performance
Summary of Economic and supply chain uncertainty expected to continue 2 Quarter nd Current demand remains strong Performance Price action continuing in collaboration with customers $70 million Performance Chemicals growth investment progressing $15.6 million semi-annual dividend; $1.8 million of sha
Slide 15: Q&A
Q&A 8/2/2022 ©2022 Innospec Inc.
Slide 16: Final Comments
Final Comments November 2022 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 20 Thank You for Your 21 28 22 29 23 30 24 31 25 26 27 Continued Support Q3 2022 Results Schedule • November 8th – Results Release After Close • November 9th – Conference Call ©2022 Innospec Inc.