[PART I FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1 Condensed Consolidated Financial Statements](index=5&type=section&id=Item%201%20Condensed%20Consolidated%20Financial%20Statements) The company's financial statements for the period ended June 30, 2021, show a significant turnaround from the prior year, with positive net income and comprehensive income driven by strong net sales recovery and increased assets and equity, despite a decrease in operating cash flow due to working capital investments [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The company reported a net income of $22.4 million for Q2 2021 and $45.8 million for the first six months of 2021, a significant improvement from prior-year net losses, primarily driven by a 45% year-over-year increase in net sales for the quarter, reflecting a recovery from the pandemic's impact | Financial Metric (in millions) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $354.5 | $244.9 | $694.1 | $617.2 | | **Gross profit** | $108.3 | $59.1 | $209.1 | $173.0 | | **Operating income/(loss)** | $37.0 | $(53.4) | $65.2 | $(12.5) | | **Net income/(loss)** | $22.4 | $(39.7) | $45.8 | $(6.6) | | **Diluted EPS** | $0.90 | $(1.62) | $1.84 | $(0.27) | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2021, total assets increased to $1,461.8 million from $1,397.4 million at year-end 2020, primarily driven by increases in trade receivables and inventories, while total equity also rose to $974.2 million from $944.9 million over the same period, supported by net income | Balance Sheet Item (in millions) | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total current assets** | $643.1 | $566.2 | | **Total assets** | $1,461.8 | $1,397.4 | | **Total current liabilities** | $291.0 | $252.4 | | **Total liabilities** | $487.6 | $452.5 | | **Total equity** | $974.2 | $944.9 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2021, net cash provided by operating activities was $21.6 million, a decrease from $32.2 million in the prior-year period, mainly due to significant cash usage for increased trade receivables and inventories as business activity recovered, with cash and cash equivalents ending the period at $94.4 million | Cash Flow Activity (in millions) | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $21.6 | $32.2 | | **Net cash used in investing activities** | $(19.2) | $(14.6) | | **Net cash used in financing activities** | $(13.3) | $(34.6) | | **Net change in cash and cash equivalents** | $(10.9) | $(17.5) | | **Cash and cash equivalents at end of period** | $94.4 | $58.2 | [Notes To The Unaudited Interim Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20To%20The%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed information on the company's financial performance by segment, debt structure, and other key accounting items, showing revenue growth across all three reportable segments, no outstanding borrowings under its $250 million revolving credit facility, and a significant tax charge of $7.4 million due to an increase in the UK corporation tax rate | Segment Performance (Net Sales in millions) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Fuel Specialties** | $143.1 | $107.4 | $282.4 | $254.4 | | **Performance Chemicals** | $128.2 | $95.7 | $254.1 | $208.8 | | **Oilfield Services** | $83.2 | $41.8 | $157.6 | $154.0 | - As of June 30, 2021, the company had repaid all borrowings under its **$250.0 million** revolving credit facility, which remains available until September 25, 2024[50](index=50&type=chunk) - The Octane Additives segment ceased trading in Q2 2020[36](index=36&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the strong Q2 2021 performance to a broad-based recovery from the COVID-19 pandemic across all segments, with net sales increasing 45% YoY for the quarter and Oilfield Services showing a 99% jump, leading to improved gross margins and a strong liquidity position despite decreased operating cash flow due to working capital investment [Results of Operations](index=26&type=section&id=Results%20of%20Operations) For Q2 2021, net sales rose 45% to $354.5 million, and operating income was $37.0 million, reversing a $53.4 million loss in Q2 2020, with Fuel Specialties sales growing 33%, Performance Chemicals sales increasing 34%, and Oilfield Services sales nearly doubling, while H1 2021 net sales grew 12% to $694.1 million, with operating income reaching $65.2 million | Segment Net Sales Change (Q2 2021 vs Q2 2020) | Net Sales (in millions) | % Change | | :--- | :--- | :--- | | **Fuel Specialties** | $143.1 | +33% | | **Performance Chemicals** | $128.2 | +34% | | **Oilfield Services** | $83.2 | +99% | | **Total** | $354.5 | +45% | - The aggregate gross margin for Q2 2021 improved to **30.6%** from **24.1%** in Q2 2020, driven by favorable pricing, sales mix, and recovery from pandemic impacts[86](index=86&type=chunk) - A charge of **$7.4 million** was recognized in Q2 2021 due to the enacted increase in the UK corporation tax rate from **19% to 25%**, effective April 2023, increasing the GAAP effective tax rate for the quarter to **44.1%**[100](index=100&type=chunk)[115](index=115&type=chunk) [Liquidity and Financial Condition](index=37&type=section&id=Liquidity%20and%20Financial%20Condition) The company's liquidity remains strong, with cash and cash equivalents of $94.4 million and no debt outstanding under its revolving credit facility as of June 30, 2021, despite operating cash flow decreasing to $21.6 million due to a $38.3 million increase in working capital, driven by higher receivables and inventories reflecting business recovery - Cash from operating activities decreased to **$21.6 million** in H1 2021 from **$32.2 million** in H1 2020, primarily due to increased working capital needs as demand recovered from the pandemic[121](index=121&type=chunk) - As of June 30, 2021, the company had cash and cash equivalents of **$94.4 million** and no outstanding debt under its revolving credit facility[122](index=122&type=chunk)[124](index=124&type=chunk) | Working Capital (in millions) | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Working capital** | $352.1 | $313.8 | | **Adjusted working capital** | $277.9 | $227.8 | [Quantitative and Qualitative Disclosures about Market Risk](index=39&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's exposure to market risks, including interest rates and foreign currency exchange rates, has not materially changed since its 2020 Annual Report on Form 10-K, and it continues to use derivative instruments, such as foreign currency forward contracts, for hedging purposes and not for trading - There have been no significant changes in the company's exposure to market risk since the 2020 Annual Report on Form 10-K[129](index=129&type=chunk) - The company uses derivatives, including foreign currency forward exchange contracts, to manage market risks in the normal course of business, not for trading purposes[127](index=127&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204%20Controls%20and%20Procedures) Based on an evaluation as of June 30, 2021, the company's Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective, with no material changes to the company's internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2021[130](index=130&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[132](index=132&type=chunk) [PART II OTHER INFORMATION](index=41&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=41&type=section&id=Item%201%20Legal%20Proceedings) The company reports that it is not a party to any material pending legal proceedings - There are no material pending legal proceedings to which the Company or any of its subsidiaries is a party[133](index=133&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A%20Risk%20Factors) There have been no material changes in the risk factors facing the company since the filing of its 2020 Form 10-K - Management's view is that there have been no material changes in the risk factors facing the Company since the 2020 Form 10-K[134](index=134&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not make any open market repurchases of its common stock during the quarter, but did purchase 1,247 shares at an average price of $101.3 per share in connection with employee stock option exercises - During the quarter ended June 30, 2021, the Company made no open market repurchases of its common stock[136](index=136&type=chunk) | Period | Total number of shares purchased | Average price paid per share | | :--- | :--- | :--- | | May 1, 2021 - May 31, 2021 | 1,247 | $101.3 |

Innospec, Inc. (NASDAQ:IOSP) Q1 2021 Earnings Conference Call May 5, 2021 9:00 AM ET Company Participants David Jones - General Counsel, Chief Compliance Officer and Corporate Secretary Patrick Williams - President and CEO Ian Cleminson - EVP and CFO Conference Call Participants Jon Tanwanteng - CJS Securities. David Silver - C.L. King David Jones Thank you. This is David Jones. The Quarter One earnings release and this presentation will be available on the company's site for at least six months. During thi ...

Financial Performance - GAAP EPS was $0.94 and adjusted non-GAAP EPS was $1.06 for Q1 2021[7] - The company's semi-annual dividend increased 10 percent to 57 cents per share[7, 20] - Operating cash generation was $22.7 million in Q1 2021[7, 9, 19] - The balance sheet shows $116.6 million in net cash[7, 9, 19] Segment Performance - Performance Chemicals operating income increased 17 percent versus Q1 2020[7, 9, 12] - Oilfield Services showed continued sequential quarter revenue growth of 28%[9] - Fuel Specialties sales decreased 5 percent [9, 11] - Oilfield Services sales decreased 34 percent due to reduced customer activity[16] Corporate Items - The effective tax rate was 240 percent [17]

Table of Contents Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-13879 INNOSPEC INC. (Exact name of registrant as specified in its charter) DELAWARE 98-0181725 (State or ...

Innospec Inc. (NASDAQ:IOSP) Q4 2020 Results Earnings Conference Call February 17, 2021 9:00 AM ET Company Participants David Jones - General Counsel, Chief Compliance Officer, Corporate Secretary Patrick Williams - President, Chief Executive Officer Ian Cleminson - Executive Vice President, Chief Financial Officer Conference Call Participants Jon Tanwanteng - CJS Securities. David Silver - C.L. King Chris Shaw - Monness, Crespi Operator Thank you all for standing by ladies and gentlemen. Welcome to today's ...

Part I [Business](index=4&type=section&id=Item%201%20Business) Innospec develops and supplies specialty chemicals across three core segments, focusing on organic growth and strategic acquisitions, with its Octane Additives segment ceasing operations in 2020 * Innospec develops, manufactures, and supplies specialty chemicals for **three main business segments**: Fuel Specialties, Performance Chemicals, and Oilfield Services, with the **Octane Additives segment ceasing trading on June 30, 2020**[10](index=10&type=chunk)[11](index=11&type=chunk)[13](index=13&type=chunk) * The company's strategy focuses on developing new products and technologies to grow its **three active segments**, actively pursuing strategic acquisitions and partnerships[23](index=23&type=chunk) * Key raw materials include oleochemicals and ethylene, with ethylene for German operations being a **single-source supply** for products representing approximately **4% of total sales**[27](index=27&type=chunk)[28](index=28&type=chunk) Research & Development Expenditures (2018-2020) | Year | Expenditure (in millions) | | :--- | :--- | | 2020 | $30.9 | | 2019 | $35.4 | | 2018 | $33.4 | * The company is subject to significant environmental regulations, including **REACH in the E.U. and U.K. REACH**, requiring substance registration and increasing expenses[45](index=45&type=chunk)[46](index=46&type=chunk) * As of December 31, 2020, the company had approximately **1,900 employees across 24 countries**[48](index=48&type=chunk) [Risk Factors](index=11&type=section&id=Item%201A%20Risk%20Factors) The company faces significant risks from global conditions, including the COVID-19 pandemic, Brexit, volatile oil prices, and operational challenges, alongside regulatory compliance and financial market fluctuations * The **COVID-19 pandemic** has adversely impacted business, particularly reducing demand in the **Fuel Specialties and Oilfield Services segments**[55](index=55&type=chunk) * **Brexit** has created trade barriers and uncertainties, potentially disrupting supply chains and adversely affecting economic conditions[58](index=58&type=chunk)[59](index=59&type=chunk) * The **Octane Additives business for motor gasoline has ceased**, and the development of a lead-free replacement fuel for AvTel poses a significant future risk[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk) * Demand for **Oilfield Services products** is highly sensitive to **volatile oil and gas prices** affecting customer exploration and production activities[78](index=78&type=chunk) * The company's revolving credit facility contains **restrictive covenants**, including financial ratios, which if breached, could lead to default and debt acceleration[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) * **Environmental liabilities**, particularly for the Ellesmere Port site, and compliance with complex regulations like **U.K. REACH**, could impose substantial costs[91](index=91&type=chunk)[94](index=94&type=chunk)[96](index=96&type=chunk) [Unresolved Staff Comments](index=23&type=section&id=Item%201B%20Unresolved%20Staff%20Comments) The company reports that there are no unresolved staff comments * None[113](index=113&type=chunk) [Properties](index=24&type=section&id=Item%202%20Properties) The company's principal properties, including headquarters and manufacturing facilities in the U.S., U.K., Germany, and France, are believed to have sufficient capacity to meet current sales levels * The company's principal properties include corporate headquarters in **Englewood, Colorado**, and major facilities in the **U.S., U.K., Germany, and France**[114](index=114&type=chunk) * Management believes current plant capacity and supply agreements are **sufficient to meet sales levels**[116](index=116&type=chunk) [Legal Proceedings](index=25&type=section&id=Item%203%20Legal%20Proceedings) The company is not a party to any material pending legal proceedings, though incidental claims could collectively have a material adverse effect * There are **no material pending legal proceedings** to which the Company or its subsidiaries are a party[117](index=117&type=chunk) [Mine Safety Disclosures](index=25&type=section&id=Item%204%20Mine%20Safety%20Disclosures) This item is not applicable to the company * Not applicable[118](index=118&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=26&type=section&id=Item%205%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Innospec's common stock trades on NASDAQ under 'IOSP', with no repurchases in 2020, and its five-year cumulative return underperformed major indices except the Russell 2000 * The Company's common stock is listed on **NASDAQ** under the symbol '**IOSP**'[119](index=119&type=chunk) * **No open market repurchases** of common stock were made during **2020** under the **$100 million share repurchase program**[121](index=121&type=chunk) Stock Performance Comparison (Value of $100 Investment) | Index | 2015 | 2020 | | :--- | :--- | :--- | | Innospec Inc. | $100.00 | $176.70 | | S&P 500 Index | $100.00 | $203.04 | | NASDAQ Composite Index | $100.00 | $269.70 | | Russell 2000 Index | $100.00 | $186.36 | [Selected Financial Data](index=28&type=section&id=Item%206%20Selected%20Financial%20Data) This section summarizes key financial data from 2016 to 2020, highlighting a significant decrease in 2020 net sales to **$1,193.1 million** and net income to **$28.7 million** from 2019 Financial Highlights (2019 vs 2020) | Metric (in millions, except per share data) | 2020 | 2019 | | :--- | :--- | :--- | | Net sales | $1,193.1 | $1,513.3 | | Operating income | $33.7 | $149.9 | | Net income | $28.7 | $112.2 | | Diluted EPS | $1.16 | $4.54 | | Net cash provided by operating activities | $145.9 | $161.6 | | Total assets at year end | $1,397.4 | $1,468.8 | | Long-term debt at year end | $0.6 | $60.1 | Quarterly Net Sales 2020 (in millions) | Quarter | Net Sales | | :--- | :--- | | Q1 | $372.3 | | Q2 | $244.9 | | Q3 | $265.1 | | Q4 | $310.8 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%207%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the **adverse impact of COVID-19 and crude oil demand collapse** on 2020 performance, leading to a **21% revenue decline**, but notes a recovery trend, strong cash flow, and a net cash position after debt repayment [Critical Accounting Estimates](index=30&type=section&id=7.1%20Critical%20Accounting%20Estimates) Management identifies critical accounting estimates including **environmental liabilities of $58.5 million**, income taxes, pension obligations, and a **$19.8 million impairment** of Oilfield Services intangible assets in 2020 * **Environmental remediation provisions** amounted to **$58.5 million** as of December 31, 2020, principally for the **Ellesmere Port site**[136](index=136&type=chunk) * A **0.25% change in the discount rate** for the U.K. pension plan would change the Projected Benefit Obligation (PBO) by approximately **$26 million**[142](index=142&type=chunk)[144](index=144&type=chunk) * A **$19.8 million impairment** of intangible assets was recorded in the **Oilfield Services segment** at June 30, 2020, due to COVID-19 and reduced oil prices[148](index=148&type=chunk) [Results of Operations](index=34&type=section&id=7.2%20Results%20of%20Operations) In 2020, total net sales decreased **21% to $1.2 billion** and operating income fell to **$33.7 million**, driven by declines in Oilfield Services and Fuel Specialties, alongside **$21.3 million restructuring** and **$19.8 million impairment charges** Segment Performance: 2020 vs. 2019 (in millions) | Segment | Net Sales 2020 | Net Sales 2019 | Change | Operating Income 2020 | Operating Income 2019 | | :--- | :--- | :--- | :--- | :--- | :--- | | Fuel Specialties | $512.7 | $583.7 | -12% | $84.5 | $116.6 | | Performance Chemicals | $425.4 | $428.7 | -1% | $54.8 | $48.7 | | Oilfield Services | $255.0 | $479.9 | -47% | $(9.5) | $39.7 | | Octane Additives | $0.0 | $21.0 | -100% | $(2.8) | $(0.7) | * A **$21.3 million restructuring charge** was recorded in **2020** related to the cessation of the **Octane Additives business**[178](index=178&type=chunk) * An **impairment charge of $19.8 million** was recorded in **2020** related to acquired intangible assets in the **Oilfield Services segment**[178](index=178&type=chunk) * The effective tax rate was **27.7% in 2020**, up from **25.4% in 2019**, with the adjusted rate at **23.5% in 2020**[180](index=180&type=chunk)[182](index=182&type=chunk) [Liquidity and Financial Condition](index=44&type=section&id=7.3%20Liquidity%20and%20Financial%20Condition) The company maintained strong liquidity in 2020, generating **$145.9 million in operating cash flow**, increasing cash to **$105.3 million**, and fully repaying its **$250 million revolving credit facility**, with total contractual commitments at **$137.1 million** * **Net cash provided by operating activities** was **$145.9 million in 2020**, compared to **$161.6 million in 2019**[208](index=208&type=chunk) * **Cash and cash equivalents increased by $29.6 million** during 2020, ending the year at **$105.3 million**[209](index=209&type=chunk)[210](index=210&type=chunk) * The company **repaid all borrowings** under its **$250 million revolving credit facility** during 2020, extending the facility until **September 2024**[211](index=211&type=chunk)[212](index=212&type=chunk) Contractual Commitments at Dec 31, 2020 (in millions) | Commitment Type | Total | 2021 | 2022-23 | 2024-25 | Thereafter | | :--- | :--- | :--- | :--- | :--- | :--- | | Remediation payments | $58.5 | $6.6 | $9.4 | $7.1 | $35.4 | | Operating lease commitments | $40.2 | $11.3 | $17.3 | $8.9 | $2.7 | | Raw material purchase obligations | $19.7 | $3.8 | $7.8 | $8.1 | $0.0 | | Capital commitments | $14.7 | $14.7 | $0.0 | $0.0 | $0.0 | | **Total** | **$137.1** | **$37.8** | **$36.4** | **$24.8** | **$38.1** | [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%207A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from **interest rates, foreign currency exchange rates (Euro, GBP, BRL)**, and **volatile raw material costs**, managed through debt structure, forward contracts, and long-term purchase agreements * The company had **no outstanding borrowings** under its **$250.0 million revolving credit facility** as of December 31, 2020[237](index=237&type=chunk)[238](index=238&type=chunk) * Primary foreign currency exposures are to the **Euro, British pound sterling, and Brazilian Real**, mitigated with **foreign currency forward contracts**[245](index=245&type=chunk)[246](index=246&type=chunk) * A hypothetical **5% strengthening of the U.S. dollar** against the British pound sterling would increase operating income by approximately **$1.4 million** annually, excluding hedging[248](index=248&type=chunk) * The company manages **volatile raw material costs** through **long-term contracts and advance bulk purchases**, rather than extensive hedging[249](index=249&type=chunk) [Financial Statements and Supplementary Data](index=53&type=section&id=Item%208%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's **audited consolidated financial statements** for 2018-2020, including auditor reports, with a critical audit matter identified as the **valuation of the Plant Closure Provision** requiring significant estimates * **PricewaterhouseCoopers LLP** issued an **unqualified opinion** on the consolidated financial statements and internal control over financial reporting as of December 31, 2020[254](index=254&type=chunk) * A critical audit matter was the **Plant Closure Provision of $58.5 million**, due to significant estimates for future remediation work, particularly at the **Ellesmere Port site**[264](index=264&type=chunk)[265](index=265&type=chunk) Consolidated Income Statement Summary (in millions) | Line Item | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Net sales | $1,193.1 | $1,513.3 | $1,476.9 | | Gross profit | $342.7 | $466.2 | $435.0 | | Operating income | $33.7 | $149.9 | $133.5 | | Net income | $28.7 | $112.2 | $85.0 | | Diluted EPS | $1.16 | $4.54 | $3.45 | * Note 5 details a **$21.3 million restructuring charge in 2020** for the cessation of the **Octane Additives segment's motor gasoline TEL production**[343](index=343&type=chunk)[344](index=344&type=chunk)[345](index=345&type=chunk) * Note 9 discloses a **$19.8 million impairment charge in 2020** on intangible assets within the **Oilfield Services segment**[360](index=360&type=chunk)[362](index=362&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=104&type=section&id=Item%209%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no disagreements with its accountants on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure * None[457](index=457&type=chunk) [Controls and Procedures](index=104&type=section&id=Item%209A%20Controls%20and%20Procedures) The CEO and CFO concluded that the company's **disclosure controls and internal control over financial reporting were effective** as of December 31, 2020, with no material changes identified * Management, including the **CEO and CFO**, concluded that the Company's **disclosure controls and procedures were effective** as of December 31, 2020[458](index=458&type=chunk) * Management concluded the Company maintained **effective internal control over financial reporting** as of December 31, 2020, based on the **COSO framework (2013)**[462](index=462&type=chunk) [Other Information](index=105&type=section&id=Item%209B%20Other%20Information) The company reports no other information for this item * None[466](index=466&type=chunk) Part III Part III incorporates information by reference from the company's **2021 Proxy Statement**, covering directors, executive officers, compensation, security ownership, related party transactions, and principal accountant fees [Directors, Executive Officers and Corporate Governance](index=105&type=section&id=Item%2010%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, corporate governance, the code of conduct, and the audit committee is incorporated by reference from the company's 2021 Proxy Statement * Information for this item is **incorporated by reference** from the **2021 Proxy Statement**[466](index=466&type=chunk) [Executive Compensation](index=106&type=section&id=Item%2011%20Executive%20Compensation) Information regarding executive compensation, compensation committee interlocks, and the compensation committee report is incorporated by reference from the company's 2021 Proxy Statement * Information for this item is **incorporated by reference** from the **2021 Proxy Statement**[471](index=471&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=106&type=section&id=Item%2012%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of certain beneficial owners and management, as well as matters related to equity compensation plans, is incorporated by reference from the company's 2021 Proxy Statement * Information for this item is **incorporated by reference** from the **2021 Proxy Statement**[472](index=472&type=chunk)[473](index=473&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=106&type=section&id=Item%2013%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related person transactions and director independence is incorporated by reference from the company's 2021 Proxy Statement * Information for this item is **incorporated by reference** from the **2021 Proxy Statement**[474](index=474&type=chunk) [Principal Accountant Fees and Services](index=106&type=section&id=Item%2014%20Principal%20Accountant%20Fees%20and%20Services) Information regarding fees paid to the company's independent registered public accounting firms and the Audit Committee's pre-approval policies is incorporated by reference from the company's 2021 Proxy Statement * Information for this item is **incorporated by reference** from the **2021 Proxy Statement**[475](index=475&type=chunk) Part IV Part IV lists **exhibits filed with the Form 10-K**, including financial statements, accountant consents, and **CEO/CFO certifications**, along with officer and director signatures [Exhibits and Financial Statement Schedules](index=107&type=section&id=Item%2015%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the annual report * This section lists all **exhibits filed with the Form 10-K**, including governance documents, material agreements, and required certifications[479](index=479&type=chunk) [Form 10-K Summary](index=111&type=section&id=Item%2016%20Form%2010-K%20Summary) This item is not applicable * Not applicable[486](index=486&type=chunk)

Financial Data and Key Metrics Changes - Total revenues for Q3 2020 were $265.1 million, a 29% decrease from $371.9 million in the same period last year [12] - Overall gross margin decreased by 2.3 percentage points to 29.7% compared to the previous year [12] - EBITDA for the quarter was $31.5 million, down from $51.1 million a year ago [12] - GAAP earnings per share were $0.51, including special items that decreased earnings by $0.20, compared to $1.22 a year ago [13] Business Line Data and Key Metrics Changes - **Fuel Specialties**: Revenues were $120 million, down 17% year-over-year, with a 12% reduction in volumes and a 5% adverse price mix [14] - **Performance Chemicals**: Revenues increased by 2% to $102 million, driven by a 5% increase in volumes, despite a 6% adverse price mix [15] - **Oilfield Services**: Revenues were $43.1 million, down 64% year-over-year, reflecting reduced customer activity in the U.S. onshore market [16] Market Data and Key Metrics Changes - Global fuel demand began to recover in Q3, leading to increased sales in fuel specialties, although the recovery was slower than anticipated [9] - U.S. completion activity in oilfield services remained low, but sales of drag reducing agents and production chemicals increased as previously shut-in wells came back online [10] Company Strategy and Development Direction - The company aims to return all businesses to pre-COVID growth and profitability, focusing on organic growth projects and potential strategic acquisitions [20] - There is a positive outlook for performance chemicals driven by consumer preferences for natural and environmentally sustainable products [7] - The strategy includes reducing cyclicality in oilfield services by expanding sales in drag reducing agents and production chemicals, particularly in the Middle East [10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about demand and activity levels improving in fuel specialties and oilfield services through Q4 and into 2021 [20] - The company is mindful of economic uncertainty and the potential impact of a second wave of COVID-19 on global recovery [20] Other Important Information - The company maintained its semiannual dividend at $0.52 per share, totaling $1.04 for the full year [7] - Net cash provided by operating activities was $55.5 million, with a strong cash position of $66 million as of September 30, 2020 [18] Q&A Session Summary Question: Expectations for operating expenses in Q4 - Management expects overhead costs to remain low due to previous cost initiatives, aiming for breakeven EBITDA in oilfield services [25][26] Question: Demand trends in Q3 and into October - Demand in oilfield services has started to improve, while fuel specialties have seen a slower recovery due to pandemic concerns [28][29] Question: Impact of potential M&A opportunities - The company remains conservative in its M&A approach, looking for opportunities that complement its business while maintaining a strong balance sheet [46][48] Question: Performance chemicals revenue trends - The negative price mix in performance chemicals is primarily due to lower raw material prices not being passed through to customers [37][39] Question: Long-term outlook on transportation fuel demand - Management believes that transportation fuel demand will recover post-pandemic and remain above GDP growth in the long term [62][64] Question: Update on fuel additives for IMO 2020 mandates - The company is gaining traction in this area, but significant sales increases are still anticipated to take time [78] Question: ESG considerations and their impact - The transition away from tetraethyl lead has positioned the company favorably in the eyes of socially conscious investors, with a focus on sustainability and environmental responsibility [80][82]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-13879 Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934: | | Trading | Name of eac ...

innospec� chemistry matters Q3 2020 Earnings NOVEMBER 2020 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. Such forward-looking statements include statements (covered by words like "expects," "estimates," "anticipates," "may," "believes," "feels," "plan," "inte ...

Innospec Inc. (NASDAQ:IOSP) Q2 2020 Earnings Conference Call August 5, 2020 10:00 AM ET Company Participants David Jones - VP, General Counsel, Chief Compliance Officer & Corporate Secretary Patrick Williams - President & CEO Ian Cleminson - EVP & CFO Conference Call Participants David Silver - CL King Capital Jon Tanwanteng - CJS Securities Operator Ladies and gentlemen, thank you for standing by. Welcome to today's Innospec's Second Quarter 2020 Earnings Release Conference Call. At this time, all particip ...