Slide 1: Q2 2023 Earnings
Q2 2023 Earnings August 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 ©2023 Innospec Inc. 4
Slide 5: Summary of 2nd Quarter Performance
Summary of 2nd Quarter Performance Q2 GAAP EPS of $1.16 Excluding the $8.0 Balance sheet has million Brazil charge $165.9 million in net Adjusted non-GAAP which reduced our EPS cash after $17.2 EPS of $1.28 by 21 cents, sales and million dividend and EBITDA grew and gross $0.6 million share margins
Slide 6: Financial Performance
Financial Performance innospec’>
Slide 7: Q2 2023 Consolidated Results ($ MM)
Q2 2023 Consolidated Results ($ MM) • Sales up 3 percent • Gross margin up 1.4 percentage points • Operating income down 26 percent • EBITDA down 13 percent • Adjusted EPS of $1.28 includes the $8.0 million Brazil charge which reduced our EPS by 21c Q2 2022 Q2 2023 ©2023 Innospec Inc. 7
Slide 8: Q2 2023 Performance Chemicals ($ MM)
Q2 2023 Performance Chemicals ($ MM) • Sales down 24 percent • Mix down 8 percent • Volumes down 16 percent • Gross margin down 8.6 percentage points • Operating income down 68 percent Q2 2022 Q2 2023 ©2023 Innospec Inc. 8
Slide 9: Q2 2023 Fuel Specialties ($ MM)
Q2 2023 Fuel Specialties ($ MM) • Sales down 13 percent • Price/mix up 3 percent • Volumes down 16 percent • Gross margin down 3.2 percentage points • Operating income down 46 percent • $8.0 million Brazil charge significantly impacted results Q2 2022 Q2 2023 ©2023 Innospec Inc. 9
Slide 10: Q2 2023 Oilfield Services ($ MM)
Q2 2023 Oilfield Services ($ MM) • Sales up 62 percent • Gross margin up 9.9 percentage points • Strong EBITDA and operating income growth Q2 2022 Q2 2023 ©2023 Innospec Inc. 10
Slide 11: Q2 2023 Corporate Items ($ MM)
Q2 2023 Corporate Items ($ MM) • Corporate costs up versus prior year • Lower share-based compensation accruals partially offset acquisition-related and other costs • Effective tax rate of 21.0 percent Q2 2022 Q2 2023 ©2023 Innospec Inc. 11
Slide 12: Q2 2023 Balance Sheet ($ MM)
Q2 2023 Balance Sheet ($ MM) • Operating cash inflow of $55.0 million • Capital expenditures of $17.3 million • Net cash balance of $165.9 million Q4 2022 Q2 2023 ©2023 Innospec Inc. 12
Slide 13: Concluding Comments
Concluding Comments innospec’>
Slide 14: Summary of 2nd Quarter Performance
Summary of Overall another good performance in the quarter 2 Quarter nd Continued benefits from balanced portfolio Performance Adjusting for one-off, $8.0 million Brazil charge, EBITDA grew and gross margin expanded Focused on continued margin improvement in all businesses $165.9 million net cash on
Slide 15: Q&A
Q&A 8/9/2023 ©2023 Innospec Inc.
Slide 16: Final Comments
Final Comments November 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 29 23 30 24 31 25 Continued Support Q3 2023 Results Schedule • November 7th – Results Release After Close • November 8th – Conference Call ©2023 Innospec Inc.