Slide 1: Q3 2022 Earnings
Q3 2022 Earnings November 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 3rd Quarter Performance
Summary of 3rd Quarter Performance Q3 GAAP EPS of $1.55 Strong contribution from Performance Chemicals all business operating income up 43 Adjusted non-GAAP percent EPS of $1.74 for the Operating income up 60 third quarter percent Personal care driving growth Margin improvement Fuel Specialties Oilf
Slide 6: Financial Performance
Financial Performance innospec’>
Slide 7: Q3 2022 Consolidated Results ($ MM)
Q3 2022 Consolidated Results ($ MM) • Sales up 36 percent • Gross margin up 0.4 percentage points • Strong operating income and EBITDA growth over prior year • Adjusted EPS of $1.74 Q3 2021 Q3 2022 ©2022 Innospec Inc. 7
Slide 8: Q3 2022 Performance Chemicals ($ MM)
Q3 2022 Performance Chemicals ($ MM) • Sales up 20 percent • Price/mix up 26 percent • Volumes up 4 percent • Unchanged gross margin of 24.5 percent • Operating income up 43 percent • EBITDA up 32 percent Q3 2021 Q3 2022 ©2022 Innospec Inc. 8
Slide 9: Q3 2022 Fuel Specialties ($ MM)
Q3 2022 Fuel Specialties ($ MM) • Sales up 14 percent • Price/mix up 30 percent • Volumes down 6 percent • Gross margin down 1.5 percentage points • EBITDA and operating income up 5 percent Q3 2021 Q3 2022 ©2022 Innospec Inc. 9
Slide 10: Q3 2022 Oilfield Services ($ MM)
Q3 2022 Oilfield Services ($ MM) • Sales approximately double • Gross margin up 0.5 percentage points • Strong EBITDA and operating income growth Q3 2021 Q3 2022 ©2022 Innospec Inc. 10
Slide 11: Q3 2022 Corporate Items ($ MM)
Q3 2022 Corporate Items ($ MM) • Corporate costs up versus prior year on higher performance compensation accruals • Adjusted effective tax rate of 20.1 percent Q3 2021 Q3 2022 ©2022 Innospec Inc. 11
Slide 12: Q3 2022 Balance Sheet ($ MM)
Q3 2022 Balance Sheet ($ MM) • Operating cash flow of $39.8 million • Net cash balance of $100.5 million Q4 2021 Q3 2022 ©2022 Innospec Inc. 12
Slide 13: Concluding Comments
Concluding Comments innospec’>
Slide 14: Summary of 3rd Quarter Performance
Semi-annual dividend increased to 65 cents; $1.28 full year Summary of dividend, a 10 percent annual increase Strong cash generation; 100.5 million net cash on balance sheet; 3 Quarter rd $2.3 million in share repurchases Performance All businesses positioned for strong relative performance Expect c
Slide 15: Q&A
Q&A 11/8/2022 ©2022 Innospec Inc.
Slide 16: Final Comments
Final Comments February 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 Thank You for Your 19 26 20 27 21 28 22 23 24 25 Continued Support Q4 2022 Results Schedule • February 21st – Results Release After Close • February 22nd – Conference Call ©2022 Innospec Inc. 16