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2FORWARD-LOOKING STATEMENTS
This presentation contains certain "forward-looking statements" within the meaning of the PrivateSecurities Litigation Reform Act of 1995. All statements other than statements of historical factsincluded or incorporated herein may constitute forward-looking statements. Such forward-lookingstatements include statements (covered by words like “expects,” “estimates,” “anticipates,” “may,”“believes,” “feels” or similar words or expressions), for example, which relate to earnings, growthpotential, operating performance, events or developments that we expect or anticipate will or may occurin the future. Although forward-looking statements are believed by management to be reasonable whenmade, they are subject to certain risks, uncertainties and assumptions, including those associated withthe United Kingdom’s exit from the European Union and our actual performance or results may differmaterially from these forward-looking statements. Additional information regarding risks, uncertaintiesand assumptions relating to Innospec and affecting our business operations and prospects aredescribed in Innospec’s Annual Report on Form 10-K for the year ended December 31, 2016 and otherreports filed with the U.S. Securities and Exchange Commission. You are urged to review ourdiscussion of risks and uncertainties that could cause actual results to differ from forward-lookingstatements under the heading "Risk Factors” in such reports. Innospec undertakes no obligation topublicly update or revise any forward-looking statements, whether as a result of new information, futureevents or otherwise.
© 2017. All Rights Reserved. Innospec, Inc.
3USE OF NON-GAAP FINANCIAL MEASURES
The information presented in this presentation includes financial measures that are not calculatedor presented in accordance with Generally Accepted Accounting Principles in the United States(GAAP). These non-GAAP financial measures comprise EBITDA, income before income taxesexcluding special items and net income excluding special items and related per share amounts.EBITDA is net income per our consolidated financial statements adjusted for the exclusion ofcharges for interest expense, net, income taxes, depreciation, amortization and impairment ofOctane Additives segment goodwill. The Company believes that such non-GAAP financialmeasures provide useful information to investors and may assist them in evaluating the Company’’’’sunderlying performance and identifying operating trends. In addition, management uses these non-GAAP financial measures internally to allocate resources and evaluate the performance of theCompany’’’’s operations. While the Company believes that such measures are useful in evaluatingthe Company’’’’s performance, investors should not consider them to be a substitute for financialmeasures prepared in accordance with GAAP. In addition, these non-GAAP financial measures maydiffer from similarly-titled non-GAAP financial measures used by other companies and do notprovide a comparable view of the Company’’’’s performance relative to other companies in similarindustries.
© 2017. All Rights Reserved. Innospec, Inc.
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Corporate HQEnglewood, CO
Regional Locations USA, UK, Continental Europe, Africa, Russia, Brazil and Asia
ManufacturingGlobal Network of Offices & Testing Facilities: USA, UK, France, Italy, Spain Germany
COMPANY PROFILE: Innospec, Inc. NASDAQ (IOSP)
© 2017. All Rights Reserved. Innospec, Inc.
4
Run-rate $1.3 billion sales
1800 Employees in
23 countries
Business Profile Key Transaction
(added $230m of sales and 430 employees)
Surfactants Acquisitionfrom Huntsman
Q4 2016
5
Technology Centres
Regional Offices
Sales & Branch Offices
Manufacturing & Toll Manufacturing
LOCATIONS - AMERICAS
Rio de Janeiro
Itajai
DenverPencader
Houston
Chatsworth
Crowley
High PointSalisbury
Pleasanton
Midland
Williston
Casper
Oxnard
5
Oilfield Services Operations
Fruita
OKC
© 2017. All Rights Reserved. Innospec, Inc.
Sao Paulo
Montreal
Calgary
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Technology Centres
Regional Offices
Sales & Branch Offices
Manufacturing & Toll Manufacturing
LOCATIONS – ASIA PACIFIC
Beijing
Seoul
Singapore
Guangzhou
New Delhi
6
© 2017. All Rights Reserved. Innospec, Inc.
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Ellesmere Port
Herne
Vernon
Milan
Limassol
Piraeus
Leuna
Madrid
Zug Castiglione
Barcelona
St Mihiel
Everberg
Moscow
LOCATIONS – EUROPE, MIDDLE EAST & AFRICA
Technology Centres
Regional Offices
Sales & Branch Offices
Manufacturing & Toll Manufacturing
7
Dubai
Cape Town
© 2017. All Rights Reserved. Innospec, Inc.
8BUSINESS UNITS FINANCIAL PERFORMANCE
SALES Q3 2017 YTD
Fuel Specialties Oilfield ServicesPerformance Chemicals Octane Additives
SALES GROWTH 2004 – Q3 2017
0
200
400
600
800
1000
1200
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q32017
Sale
s($
m)
© 2017. All Rights Reserved. Innospec, Inc.
9CORPORATE STRUCTURE
Fuel Specialties Oilfield ServicesPerformance Chemicals Octane Additives
© 2017. All Rights Reserved. Innospec, Inc.
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Fuel Specialties Oilfield Services Performance Chemicals Octane Additives
© 2017. All Rights Reserved. Innospec, Inc.
11FUEL SPECIALTIES
• Fuel Additives – detergents; cold flow improvers; lubricity improvers; corrosion inhibitors; conductivity improvers – focused on all fuels
What We Do
• Make fuels on-specification ; create brand-leading & premium fuels
Product Benefits
• Major oil companies, fuel marketers /retailers; pipelines, fleets, marine, aviation
Customers
• Innovative technology & customer service
How We Compete
• Miles/vehicles on the road; legislation , fuel economy & engine technology
Market Drivers
• Market leader
Market Position
• GDP +1-3 points
Sales Growth Potential
© 2017. All Rights Reserved. Innospec, Inc.
12FUEL SPECIALTIES - STRATEGY
� Solid underlying growth in distillates for heavy duty
� EV growth focused on gasoline passenger cars
� Changes in engine technology offer opportunities
� New product development key to growth in new gasoline engines
� Significant growth potential in developing markets
� Improvements in air quality and fuel quality
� South America, Middle East, Asia Pacific
� Maintain operating margins at +20% as market leader
� Opening of China entity next step in preparing for local growth
� M&A - opportunities likely to be very limited
© 2017. All Rights Reserved. Innospec, Inc.
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Fuel Specialties Oilfield ServicesPerformance Chemicals Octane Additives
© 2017. All Rights Reserved. Innospec, Inc.
14PERFORMANCE CHEMICALS (PERSONAL & HOME CARE)
• Surfactants, benzoate esters, silicones
What We Do
• Luxurious foam/lather; low irritation; shine; skin-feel
Product Benefits
• Formulators and retailers of skin care, hair care, home care, agrochemical and mining products
Customers
• Innovative Technology & Customer Service
How We Compete
• Product performance – skin care and hair care
• Natural; x-free in premium brands
Market Drivers
• Established – strong in technology innovation
• Potential adjacent market development – ag, mining, construction, agchem
Market Position
• Mid single digit %
Sales Growth Potential
© 2017. All Rights Reserved. Innospec, Inc.
15PERFORMANCE CHEMICALS
� Business improvement – Personal & Home Care
� Grow in existing markets – globally
� “More space in the bottle”
� New product introduction
� Overall Margin improvement
� Expand into adjacent markets
� Good technology base for expansion into agrochemical and mining formulations.
� Overall operating margin improvement to +10% by 2020
� Opening of China entity next step in preparing for local growth
� Opportunities for further M&A
© 2017. All Rights Reserved. Innospec, Inc.
16BODY WASH
Anionics
Conditioning Polymers
Limited to secondary
and tertiary surfactants
Nonionics
Amphoterics
Anionics
Conditioning Polymers
Nonionics
Amphoterics
85-95%
10-30%
20172016
© 2017. All Rights Reserved. Innospec, Inc.
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Fuel Specialties Oilfield ServicesPerformance Chemicals Octane Additives
© 2017. All Rights Reserved. Innospec, Inc.
18OILFIELD SERVICES
• Work with operators across most major basins to deliver custom chemical solutions and services for drilling, completions, production and pipeline applications
What We Do
• A true one-stop shop that provides chemical expertise for drilling, completion, production and midstream; in-house technical expertise and evaluation; first-class R&D capabilities
Product Benefits
• E&P Operators; service companies; drilling companies; pipelines
Customers
• Direct to operator; regional laboratory services; innovative technology and customer service
How We Compete
• Oil & gas demand; changes to drilling, completion, and production techniques;
• Minimize environmental impact
Market Drivers
• Creating a new mid-tier leader based on technology and service
Market Position
• Oil and gas price dependent
Sales Growth Potential
© 2017. All Rights Reserved. Innospec, Inc.
19OILFIELD SERVICES
� Continued growth opportunities in North America
� De-bundling concept continues to attract new customers
� Good customer base in strategic low lift cost basins
� US industry has reduced lift costs by up to 40% - business profitable with crude prices above $40
� Business reaching inflexion point where additional revenue growth is highly incremental
� Expand global business
� Initial focus on opportunities in the Middle East
� Overall operating margin improvement to +10% by 2021
© 2017. All Rights Reserved. Innospec, Inc.
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Fuel Specialties Oilfield Services Performance Chemicals Octane Additives
© 2017. All Rights Reserved. Innospec, Inc.
21TEL – MOTOR GASOLINE & AVIATION
• One remaining country• Expect operating income drop to 50% in 2018 versus
2017 and 2019 to be a year of phase out.
• One remaining country• Expect operating income drop to 50% in 2018 versus
2017 and 2019 to be a year of phase out.
Motor Gasoline (Octane Additives)
• TEL still mandated in 100LL • Essential for general aviation fleet• FAA program targets first alternatives by 2019
• TEL still mandated in 100LL • Essential for general aviation fleet• FAA program targets first alternatives by 2019
Aviation Gasoline (Fuel Specialties)
©2017. All Rights Reserved. Innospec, Inc.
22BALANCED CAPITAL MANAGEMENT PROGRAM
Strong Balance Sheet – Leverage at 1.0x
Semi-annual dividend – increased 10-15% pa for last four years
Share Repurchase mandate available
Cash generative – further improvement from growing businesses
Strong Support from excellent banking group
© 2017. All Rights Reserved. Innospec, Inc.