Slide 1: Q3 2023 Earnings
Q3 2023 Earnings November 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 3rd Quarter Performance
Summary of 3rd Quarter Performance Q3 GAAP EPS of $1.57 Semi-annual dividend Excellent $58.1 million increased to 72 cents cash from operations Adjusted non-GAAP per share in the quarter EPS of $1.59 Full year dividend up 10 Strong balance sheet percent to $1.41 has $207.2 million in net cash Perfor
Slide 6: Financial Performance
Financial Performance innospec’>
Slide 7: Q3 2023 Consolidated Results ($ MM)
Q3 2023 Consolidated Results ($ MM) • Sales down 10 percent • Gross margin down 0.8 percentage points • Operating income down 16 percent • EBITDA down 5 percent Q3 2022 Q3 2023 ©2023 Innospec Inc. 7
Slide 8: Q3 2023 Performance Chemicals ($ MM)
Q3 2023 Performance Chemicals ($ MM) • Sales down 9 percent • Price/mix down 19 percent • Volumes up 7 percent • Gross margin down 3.6 percentage points • Operating income down 33 percent Q3 2022 Q3 2023 ©2023 Innospec Inc. 8
Slide 9: Q3 2023 Fuel Specialties ($ MM)
Q3 2023 Fuel Specialties ($ MM) • Sales down 5 percent • Price/mix down 4 percent • Volumes down 4 percent • Gross margin up 1.4 percentage points • Operating income similar to prior year Q3 2022 Q3 2023 ©2023 Innospec Inc. 9
Slide 10: Q3 2023 Oilfield Services ($ MM)
Q3 2023 Oilfield Services ($ MM) • Sales down 14 percent • Gross margin down 0.4 percentage points • Operating income up 15 percent Q3 2022 Q3 2023 ©2023 Innospec Inc. 10
Slide 11: Q3 2023 Corporate Items ($ MM)
Q3 2023 Corporate Items ($ MM) • Corporate costs within expected range • Effective tax rate of 17.5 percent Q3 2022 Q3 2023 ©2023 Innospec Inc. 11
Slide 12: Q3 2023 Balance Sheet ($ MM)
Q3 2023 Balance Sheet ($ MM) • Excellent operating cash inflow of $58.1 million • Capital expenditures of $16.7 million • Strong net cash balance of $207.2 million Q4 2022 Q3 2023 ©2023 Innospec Inc. 12
Slide 13: Concluding Comments
Concluding Comments innospec’>
Slide 14: Summary of 3rd Quarter Performance
Summary of Entering fourth quarter with good momentum in all businesses 3 Quarter rd Continued benefits from balanced portfolio Performance Consumer and regulatory trends driving organic growth opportunities Flexible, debt-free balance sheet; Consistent shareholder returns Semi-annual dividend incre
Slide 15: Q&A
Q&A 11/7/2023 ©2023 Innospec Inc.
Slide 16: Final Comments
Final Comments February 2024 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Thank You for Your 18 25 19 26 20 27 21 28 22 29 23 24 Continued Support Q4 2023 Results Schedule • February 13th – Results Release After Close • February 14th – Conference Call ©2023 Innospec Inc. 16