INNOSPEC Tan Ing Soon Fuel Specialties May 2017
COMPANY PROFILE Innospec, Inc. NASDAQ (IOSP) 2 Corporate HQ Englewood, CO Manufacturing Regional Locations USA, UK, Continental Europe, Africa, Russia, Brazil and Asia Pro-FORMA 2016 Financial Performance $1.1 billion sales revenue 1800 employees 23 countries Global Network of Offices & Testing Facilities: USA, UK, France, Germany Italy, Spain, Belgium Key Transaction Surfactants acquisition from Huntsman closed end 2016 (added $230m of sales and 430 employees);
LOCATIONS ASIA PACIFIC Beijing New Delhi Regional Head Offices Sales & Branch Offices Technology Centres Manufacturing & Toll Manufacturing Guangzhou Subic Singapore 12/05/2017 Seoul
LOCATIONS EUROPE, MIDDLE EAST, AFRICA Dubai Karlstad Moscow Ellesmere Port Everberg Herne Leuna St Mihiel Zug Vernon Castiglione Regional Head Offices Sales & Branch Offices Technology Centres Manufacturing & Toll Manufacturing Milan Barcelona Madrid Piraeus Limassol 12/05/2017 4 Cape Town
LOCATIONS - AMERICAS Rio de Janeiro Itajai Denver Pencader Chatsworth Oklahoma City Midland Pleasanton 12/05/2017 High Point Salisbury Crowley Houston Regional Head Offices Sales & Branch Offices Technology Centres Manufacturing & Toll Manufacturing 5
INNOSPEC BUSINESS UNITS Performance Chemicals Fuel Specialties Innospec Octane Additives Oilfield Services
BUSINESS UNITS FINANCIAL PERFORMANCE SALES FULL YEAR 2016 5 SALES GROWTH YOY TO 2016 1200 Sales ($m) 1000 800 600 400 200 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Fuel Specialties May 12, 2017 Oilfield Services 2017. Innospec, Inc. All Rights Reserved Octane Performance Chemicals
CORPORATE STRUCTURE Fuel Specialties May 12, 2017 Oilfield Services 2017. Innospec, Inc. All Rights Reserved Performance Chemicals 8 Octane Additives
9 Fuel Specialties May 12, 2017 Oilfield Services 2017. Innospec, Inc. All Rights Reserved Performance Chemicals Octane Additives
Fuel Specialties Market Segments We are the leading dedicated manufacturer and supplier of fuel additives and solutions that help improve fuel efficiency, boost engine performance and reduce harmful emissions Marine Specialties Power Specialties Refinery Specialties Performance Specialties Fuel Borne Catalysts Heating Specialties
FUEL SPECIALTIES What We Do Fuel Additives detergents; cold flow improvers; lubricity improvers; corrosion inhibitors; conductivity improvers Product Benefits Make fuels on-specification ; create brand-leading & premium fuels Customers Major oil companies, fuel marketers /retailers; fleets, marine, aviation How We Compete Innovative technology & customer service Market Drivers Miles/vehicles on the road; legislation, fuel economy & engine technology Market Position Market leader 11
FUEL SPECIALTIES BEHIND THE BRANDS May 12, 2017 2017. Innospec, Inc. All Rights Reserved 12
13 Fuel Specialties May 12, 2017 Oilfield Services 2017. Innospec, Inc. All Rights Reserved Performance Chemicals Octane Additives
OILFIELD SERVICES What We Do Work with operators across all major basins to deliver custom chemical solutions and services for drilling, completions, production and pipeline applications Product Benefits A true one-stop shop that provides chemical expertise for drilling, completion, production and midstream; in-house technical expertise and evaluation; firstclass R&D capabilities Customers Operators; service companies; drilling companies; pipelines How We Compete Direct to operator; regional laboratory services; innovative technology and customer service Market Drivers Oil & gas demand; changes to drilling, completion, and production techniques; Minimize environmental impact Market Position Started very small creating a new mid-tier leader based on technology and service 14
OILFIELD SERVICES BEHIND THE BRANDS May 12, 2017 2017. Innospec, Inc. All Rights Reserved 15
UNRIVALLED RANGE OF CHEMISTRIES Scale Inhibitors Wax Control Biocides Lost Circulation Materials CrossLinkers Flowback Recovery Surfactants 16 Corrosion Inhibitors Gas Sweetening
17 Fuel Specialties May 12, 2017 Oilfield Services 2017. Innospec, Inc. All Rights Reserved Performance Chemicals Octane Additives
PERFORMANCE CHEMICALS (PERSONAL & HOME CARE) What We Do Surfactants, benzoate esters, silicones Product Benefits Luxurious foam/lather; low irritation; shine; skin-feel Customers Formulators and retailers of premium brands skin care & hair care How We Compete Innovative Technology & Customer Service Market Drivers Product performance skin care and hair care premium brands Natural; x-free Market Position Very small player strong in technology innovation 18
PERSONAL CARE BEHIND THE BRANDS May 12, 2017 2017. Innospec, Inc. All Rights Reserved 19
20 Fuel Specialties May 12, 2017 Oilfield Services 2016. Innospec, Inc. All Rights Reserved Performance Chemicals Octane Additives
TEL MOGAS & AVTEL Motor Gasoline One remaining country (Algeria) Potential phase out in 2017-2018 Aviation Gasoline (reported within Fuel Specs) TEL still mandated in 100LL Essential for general aviation fleet FAA program targets first alternatives by 2018 May 12, 2017 2016. Innospec, Inc. All Rights Reserved 21
THE WORLD IS CHANGING LOCAL GLOBAL WEST ASIA MANUFACTURING MULTIMEDIA
FUELS MARKET ARE NOT EXEMPTED FROM CHANGE Fuels have transformed from commodity to specialty Fuels development via additives no longer limited to MNCs Fuels branding has played an important role because of a recognized market need
FROM SIMPLE TO COMPLEX MARKET Mixed Fleet Broad Fuel Mix
HOW CAN BUSINESS SURVIVE IN CHANGING MARKET? 19th Century 20th Century 21st Century Industrial Revolution Computer Age Economy of Speed Battle Cry: Battle Cry: Battle Cry: Quality Knowledge & Information Conceptualization & Innovation Innovate or Evaporate
HOW CAN BUSINESS SURVIVE IN A CHANGING MARKET? Marketing Plan Vision & Mission Productivity & Efficiency Key Differentiator Innovation Brand Equity (Market Positioning) (Product Development) Product Research & Market Study