Slide 1: Q4 2022 Earnings
Q4 2022 Earnings February 2023 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 4th Quarter Performance
Summary of 4th Quarter Performance Q4 GAAP EPS of $1.02 Double-digit sales and Excellent operating operating income growth cash flow Adjusted non-GAAP EPS of $1.20 Improved margins Balance sheet has $147.1 million in net 36 cent EPS adverse Strong benefit from cash tax charge balanced portfolio Perf
Slide 6: Financial Performance
Financial Performance innospec’>
Slide 7: Q4 2022 Consolidated Results
Q4 2022 Consolidated Results ($ MM) • Sales up 24 percent • Gross margin up 2.4 percentage points • Strong operating income and EBITDA growth over prior year • Adjusted EPS of $1.20 • 36 cent EPS adverse tax charge Q4 2021 Q4 2022 ©2022 Innospec Inc. 7
Slide 8: Q4 2022 Performance Chemicals
Q4 2022 Performance Chemicals ($ MM) • Sales up 4 percent • Price/mix up 18 percent • Volumes down 5 percent on customer destocking • Gross margin down 3.0 percentage points • Operating income down 7 percent Q4 2021 Q4 2022 ©2022 Innospec Inc. 8
Slide 9: Q4 2022 Fuel Specialties
Q4 2022 Fuel Specialties ($ MM) • Sales up 2 percent • Price/mix up 25 percent • Volumes down 14 percent • Gross margin up 0.4 percentage points • Operating income up 4 percent Q4 2021 Q4 2022 ©2022 Innospec Inc. 9
Slide 10: Q4 2022 Oilfield Services
Q4 2022 Oilfield Services ($ MM) • Sales up 93 percent • Gross margin up 4.5 percentage points • Strong EBITDA and operating income growth Q4 2021 Q4 2022 ©2022 Innospec Inc. 10
Slide 11: Q4 2022 Corporate Items
Q4 2022 Corporate Items ($ MM) • Corporate costs up versus prior year on higher performance compensation accruals • Full year adjusted effective tax rate of 27.0 percent (36 cent EPS impact in the quarter) • Expected full year effective tax rate to remain at 28.0 percent in 2023 Q4 2021 Q4 2022 ©202
Slide 12: Q4 2022 Balance Sheet
Q4 2022 Balance Sheet ($ MM) • Operating cash flow of $78.4 million • Net cash balance of $147.1 million Q4 2021 Q4 2022 ©2022 Innospec Inc. 12
Slide 13: Concluding Comments
Concluding Comments innospec’>
Slide 14: Summary of 4th Quarter Performance
Summary of Strong operating performance in the quarter and full-year Double digit sales and operating income growth in the quarter and 4 Quarter th full-year with improved margins Performance Continued to build customer partnerships with excellent supply- reliability, product innovation and technica
Slide 15: Q&A
Q&A 2/22/2023 ©2022 Innospec Inc.
Slide 16: Final Comments
Final Comments May 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 20 Thank You for Your 21 28 22 29 23 30 24 31 25 26 27 Continued Support Q1 2023 Results Schedule • May 3rd – Results Release After Close • May 4th – Conference Call ©2022 Innospec Inc. 16