InnospecExpanding Acquisitions

&

Global Integration

DEC 2014

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Forward-Looking Statements

This presentation contains certain "forward-looking statements" within the meaning of thePrivate Securities Litigation Reform Act of 1995. All statements other than statements ofhistorical facts included or incorporated herein may constitute forward-lookingstatements. Such forward-looking statements include statements (covered by words like“expects,” “estimates,” “anticipates,” “may,” “believes” or similar words or expressions), forexample, which relate to operating performance, events or developments that we expector anticipate will or may occur in the future (including, without limitation, any of theCompany’s guidance in respect of sales, gross margins, pension liabilities and charges, netincome, growth potential and other measures of financial performance). Althoughforward-looking statements are believed by management to be reasonable when made,they are subject to certain risks, uncertainties and assumptions, and our actualperformance or results may differ materially from these forward-looking statements.Additional information regarding risks, uncertainties and assumptions relating to theCompany and affecting our business operations and prospects are described in theCompany’s Annual Report on Form 10-K for the year ended December 31, 2013, and otherreports filed with the U.S. Securities and Exchange Commission. You are urged to reviewour discussion of risks and uncertainties that could cause actual results to differ fromforward-looking statements under the heading "Risk Factors” in such reports. TheCompany undertakes no obligation to publicly update or revise any forward-lookingstatements, whether as a result of new information, future events or otherwise.

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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 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 financial measuresprovide useful information to investors and may assist them in evaluating the Company’sunderlying performance and identifying operating trends. In addition, management uses thesenon-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.

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Outline

• Corporate & Business Profile

• History

• Financial Performance

• Compliance Update

• Delivering the Strategy

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Innospec – Transformed Company

• Since float in 1998, Innospec has been transformed – From a one product ‘sunset’ company

– Into a vibrant, growing, profitable specialty chemicals player

• Good quality, growing markets

• Strong competencies :– Technology & Innovation

– Customer Service

• Highly cash generative - strong balance sheet

• Innovative

• Acquisition Strategy delivering

• Analyst Coverage Sidoti;– CJS Securities; KeyBanc; Monness Crespi Hardt

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Innospec Inc. – Company profile

• Innospec Inc. – NASDAQ (IOSP)

• Corporate HQ in Englewood, CO

• Regional offices in USA, UK,

continental Europe, Africa, Russia,

Brazil and Asia

• Manufacturing sites in USA, UK,

France and Germany; global

network of offices and testing

facilities

• Revenue of $819 million (2013)

– Run rate over $ 1 billion

• Approximately 1100 employees in

20 countries (end 2013)

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Innospec’’’’s Business Focus

PerformanceChemicals

Octane Additives

FuelSpecialties

InnospecOilfield

Specialties

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Fuel Specialties

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Innospec Fuel Specialties

• We focus solely on fuel and fuel additive

technology

• We develop and market products to

– Improve cleanliness, efficiency and safety

– Reduce emissions and maintenance costs of

engines, boilers and gas turbines

• We will improve any fuel based on oil, coal,

or biofuel

““““Focused on Fuel””””

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Uniquely - We treat the Whole Barrel

• LPG

• Gasoline and Naphtha

• Jet Fuel

• Light Heating Oil

• Diesel and Gas Oil

• Marine Bunker Fuel

• Industrial Heavy Fuel Oil

• Crude Oil

Cru

de

Oil

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Innospec’s Competitive Advantage in Fuel Specialties

• Dedicated people to support customers

– Best-in-class sales and technical teams

– Focused and dedicated to fuel additives

– Strong global presence, and still extending

• Market-Leading Technology – focused on fuel

• Dedicated R&D

– High % of sales are from new products

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Oilfield Specialties

Natural Expansion into an

Adjacent Market

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Oilfield Specialties

• Opportunity to expand into an adjacent market based on existing and expanding technology.

• Good quality markets – higher growth rates in both developed and developing countries.

• Change in Exploration and Production –Unconventional

– Shale, deepwater

– Requires novel technology

• Solutions to problems are aligned to refinery issues

• Three acquisitions now completed

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Oilfield Specialties Strategy

• To build up a balanced business in :

– Drilling chemicals and services

– Production chemicals and services

– Oil & Gas

• Acquisition 1 - Dec 2012 :

– Strata Control - Drilling Specialties

• Acquisition 2 - Nov 2013

– Bachman Services– Production Specialties

• Acquisition 3 – Oct 2014

– Independence Oilfield Chemicals

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Strata Control Inc

• Oilfield Specialties – Leader in Lost Circulation

Materials

• High Growth Opportunity

– USA

– International

• Crowley, Louisiana, USA

• Patented technology

• Accretive immediately

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Bachman Services

• Full range chemical & service provider

– Oil & Gas applications

– Mainly focused on production chemicals

– (some stimulation and fracking)

• Very high levels of customer service

• Geographically focused

• High Growth Opportunity

– North America & globally

• Accretive immediately

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Independence

Oilfield Chemicals

• Fast growing, innovative

• Focus on stimulation and fracking

– But fast expanding in production chemicals

• Great presence in growing basins

– Complementary to Innospec

• High levels of service

• Innovative Products and Customer Approach

• Excellent fit with Innospec strategy

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Performance

Chemicals

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• Now 50% of Performance Chemicals

• Skin care and Hair care focus

• Specialty surfactants

• Silicones for shine

Personal Care

P&G

Iselux®

Soap and Glory

Iselux®

Elkos

Finsolv® TN and

Finsolv® EB

P&G

Iselux®

Avon

Pureact WS Conc.

Unilever

Finsolv® TN

L’Occitane

Activsoft

MS100

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Acquisition of Chemsil & Chemtec

• CHEMSIL

– Specialist formulators of silicone-based personal care products

– Leading edge technology in skin care and hair care

– Products are very complementary to Innospec range

• Adds ‘shine’ to the product offering

• CHEMTEC

– Distribution to the Personal Care Industry

– Customer Service & West Coast Location

• EXCELLENT FIT WITH INNOSPEC

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• Manufacturer of Fragrance Ingredients - Examples

Lilestralis® - lily of the valley

fragrances for fabric softeners, soaps

and other household and personal

care products

Osyrol® - Sandalwood

fragrance for fine

perfumes

Aroma Chemicals

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Polymers

• Polyethylene Waxes

– Plastics processing, Color Masterbatch, Printing Inks and , Hot Melt Adhesives

– Also used as part of Personal Care portfolio

• EVA (ethylene – vinyl acetate) copolymers

– Used in plastic injection moulding, hoses, films & foams

• Relatively ‘commodity’ part of Performance Chemicals– Subject to greater swings of demand and margins

• Asset Optimization

– Key to Fuel Specialties and Oilfield Specialties

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Octane Additives

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TEL Phase-out

• World’s only producer of tetra ethyl lead (TEL)

– lead for leaded gasoline

• TEL in Motor Gasoline in terminal decline

• One country still to convert to unleaded gasoline

– Responsible exit in line with local investment

• Aviation gasoline TEL on a longer timeframe– First alternatives starting to emerge

– Safety is paramount – approvals process is long and rigorous

– Large legacy aircraft fleet

– TEL is still mandated by civil aviation regulations

• Management focus on responsibly meeting demand during transition to unleaded gasoline.

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Operating Model

Global activities

StrategyLegal & ComplianceKey accountsR&DCo-producer salesLeverage purchasingAcquisitionsFinance ITHR

Americas

Europe,

Middle East

& Africa

Asia

Pacific

Integrated regional businessesP&L responsibility

Sales, Marketing, Supply chain, Manufacturing

Customers

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Strategy

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Innospec Group Strategy

• Core businesses continue to grow

– Good quality markets

• Acquisitions have integrated well

• IOSP continues to be cash-generative

• Strategic Themes

– Organic growth of existing business

– Acquisition integration - further enhance shareholder value.

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Innospec Strategy – Organic Growth (1)

• Fuel Specialties– Technology-driven ; Continued investment in R&D

• Engine technology and fuel quality offers opportunities

– Geographical expansion• Brazil operating well

• Russia impacted by political instability & sanctions

• Canada, China and India – possible near-term trading operations

• Octane Additives– Motor Gasoline

• Understand remaining demand and ensure supply

• Responsible exit in line with local refinery investment

– Aviation Gasoline

• Stay close to aviation fuel developments

– Responsibly meet demand during transition to unleaded gasoline

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• Performance Chemicals – Focus on Personal Care

– Technology Development

• Improved Performance - Surfactants, Benzoate Esters

• Customer drive for ‘natural’ green products

• Now offering ‘shine’ as well as ‘foam/lather’ and ‘cleansing’

• Strategy – “take more space in the bottle’

– Acquisition Opportunities • Technology Additions

– ‘More space in the bottle’

• Geography

– Accelerate expansion outside USA

Innospec Strategy – Organic Growth (2)29

Innospec Strategy – Organic Growth (3)

• Oilfield Specialties – Key Focus

– North American market is very strong

– Consolidation offers opportunities

– Acquisitions integrating well

• Build-out from existing assets

– Further establishment & growth in existing basis

– Growth of integrated Frac/Stim & Production Chemicals

• Better treatment & more economic performance

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Oilfield Chemicals

Drilling Production

Fracking

Flow

Assurance

Asset

Integrity

LCM

Specialty

Additives

IOC/Bachman/Strata/Innospec

Completion and

Stimulation

IOSP Footprint in Oilfield Chemicals32

Drilling

Completion

Loss of Circulation

Production

Enhanced Recovery

Pipeline

Refinery

Terminal

Water Treatment

InnospecBachman

Strata

IOC

W2W33

Run Rate OFS over $250 million sales

Sales

IOSP

Bachman

Strata

IOC

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We are creating a new Market Leader ?

• The timing is perfect for a new leader !

• Industry consolidation has left a gap

• The big companies are losing focus :

– New product development

– Service levels

• Innospec and IOC have similar cultures

– Entrepreneurial, innovative and customer-focused

• Acquisition is all about growth !

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Acquisition Integration Focus

• People

– Retention of key people

– Selective addition of quality hires to fill gaps

• Innospec Standards

– Manufacturing & Operations

– Safety, Health, Environment & Regulatory

• Financial Integration

• Sales Growth

– USA

– International

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Balanced Capital Management Program

• Share Repurchases or Dividend may also be used as part of capital management.

– 2011 program repurchased almost 1 million shares

• Retired 3% of the equity, at a cost of $26 million.

– 2012 dividend of $2 per share

• At a cost of $47 million.

• New Dividend Policy Announced November 2013

– 50 cents per share for 2013

– 55 cents per share for 2014

• 2014 Buy-Back Facility in place

– $20 million

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q3 2014

Fuel Specialties Performance Chemicals Octane Additives

Innospec Inc. – Sales Growth – On Track38

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IOSP Share Price

IOSP Share Price

Innospec – Strong Base for Expansion

• Solid base from which to continue expansion

– Still driving organic growth

• Finances in good shape

– Strong balance sheet – even after current acquisitions.

– $200m revolving credit facility with appropriate headroom

to execute strategy

– Leverage still at 1x EBITDA

• Still alive to further acquisition

• But focused on delivery !

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