InnospecA New Phase of Development

JANUARY 2013

Forward-Looking StatementsThis 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”, “anticipates”, “may”, “believes” orsimilar words or expressions), for example, which relate to operating performance, events ordevelopments that we expect or anticipate will or may occur in the future (including, without limitation,any of the Company’s guidance in respect of sales, gross margins, pension liabilities and charges, netincome, growth potential and other measures of financial performance). Although forward-lookingstatements are believed by management to be reasonable when made, they are subject to certain risks,uncertainties and assumptions, and our actual performance or results may differ materially from theseforward-looking statements. Additional information regarding risks, uncertainties and assumptionsrelating to the Company and affecting our business operations and prospects are described in theCompany’s Annual Report on Form 10-K for the year ended December 31, 2011, and other reports filedwith the U.S. Securities and Exchange Commission. You are urged to review our discussion of risks anduncertainties that could cause actual results to differ from forward-looking statements under theheading "Risk Factors”. The Company undertakes no obligation to publicly update or revise any forward-looking statements, 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 include EBITDA which is net income per our consolidated financial statements adjusted for the exclusion of charges for interest expense (net), income taxes, depreciation, amortization and impairment of Octane Additives business goodwill. The Company believes that such non-GAAP financial measures provide useful information to investors and may assist them in evaluating the Company’s underlying performance and identifying operating trends. In addition, management uses these non-GAAP financial measures internally to allocate resources and evaluate the performance of the Company’s operations. While the Company believes that such measures are useful in evaluating the Company’s performance, investors should not consider them to be a substitute for financial measures prepared in accordance with GAAP. In addition, these non-GAAP financial measures may differ from similarly-titled non-GAAP financial measures used by other companies and do not provide a comparable view of the Company’s performance relative to other companies in similar industries.

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Outline

• Corporate Profile

• History

• Financial Performance

• Compliance Update

• 2013-2014 Prognosis

• Metrics

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Innospec – A NASDAQ Company which is :

• Growing

• In good quality markets

• Continues to deliver on organic growth

• First stage of acquisition strategy now delivering

• Highly cash generative

• Net debt free

• Innovative

• Extended analyst coverage to four

– Monness Crespi Hardt

– Sidoti

– CJS Securities

– KeyBanc

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Innospec Inc. – Company profile

• Innospec Inc. – NASDAQ (IOSP)

• Corporate HQ in Littleton, CO

• Regional offices in USA, UK, continental

Europe, Africa and Asia

• Manufacturing sites in USA, UK, France

and Germany; global network of offices

and testing facilities

• Revenue of $774 million (2011)

• Approximately 850 employees in 20

countries

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Innospec’s Business Focus

PerformanceChemicals

Octane Additives

FuelSpecialties

InnospecOilfield

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

• Automotive Gasoline

• Automotive Gasoil

& Middle Distillates

• Jet Fuel

• Light Heating Oil

• Industrial Heavy Fuel Oil

• Marine Bunker Fuel

• 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

• Good technology – focused on fuel

• Dedicated R&D

– High % of sales are from new products

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Performance

Chemicals

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• Specialty surfactant manufacturing company

– Focused on the personal care industry

• Sun care, Hair conditioning, Antiperspirant/Deodorant,

Skin cleansing and Skin care

• Products in the market

AVON, SCHRING PLOUGH,

UNILEVER, NEUTROGENA

FINSOLV TN

C12-15 Alkyl Benzoate

L’OREAL, SEXY HAIR

CONCEPTS, L’OREAL

FINQUAT CT

QUATERNIUM 75

COTY, UNILEVER

FINESTER EH-25

C12-15 Alkyl Ethylhexanoate

PAUL MITCHELL,

JOHN FREIDA

FINESTER DOM-R

Diethylhexyl maleate

Personal Care

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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

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• EVA (ethylene – vinyl acetate) copolymers

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

• Polyethylene Waxes

– Plastics processing, Candles, Adhesives

– Also used as part of Personal Care portfolio

• Relatively ‘commodity’ part of Active Chemicals

– Subject to greater swings of demand and margins

• Asset Optimization

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

• Countries still to convert to unleaded gasoline

– North Africa and the Middle East

• Customer Exits can be quick and with little warning

• Aviation gasoline requires significant research and development

– Safety is paramount

– Large legacy aircraft fleet

– TEL is mandated by civil aviation regulations

• Management focus on generating cash from remaining volume

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Oil Field Specialties

Natural Expansion into an

Adjacent Market

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Oil Field Specialties

• Opportunity to expand into an adjacent market using

amendments to existing 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 allied to refinery issues

• Prime opportunity for acquisitions

– First acquisition completed in December 2012

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Strata Control Inc

• Oilfield Specialties – Leader in Lost Circulation

Materials

• Approx $18 million in sales

• Concentrated in USA

– Limited exports

• Crowley, Louisiana, USA

• Patented technology

• Accretive in 2013

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Operating Model – Keeping it Simple

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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Innospec Inc. – Sales Growth – All Innospec

0

100

200

300

400

500

600

700

800

2004 2005 2006 2007 2008 2009 2010 2011 Q3 YTD

2012

Octane Additives

Active Chemicals

Fuel Specialties

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Compliance

• Total commitment from senior team to Compliance

– A clear top-down compliance ethic communicated

• Substantial Investment in Enhanced Compliance

– Extensive and on-going review of all contracts and relationships.

– Extensive employee training

• Enhanced Compliance Structure

– US based General Counsel / Head of Compliance

– UK based Global Compliance Counsel

– Processes and training designed to prevent recurrence

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Outlook 2013-2014

Market Dynamics – Fuel Specialties

• Miles on the road continues to grow

– Particularly in developing markets

• Fuel Balance changing

– Gasoline declining in US & Europe – passenger car fuel economy

– Diesel continues to grow in all markets

• Legislation in emerging markets (eg; sulfur, biofuels)

• Customer Base evolving

– Changing names in refining

– Emergence of national oil companies

• No significant changes in competitive landscape

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Market Dynamics – Performance Chemicals

• Underlying growth in personal care continues

– Strong growth in developing markets (eg; Brazil, China)

• Consumer Trends driving product development

– Improved product performance

– X-free ; elimination of unwanted components

• Sulfates, nitrosamines, 1,4 dioxane

– Natural/renewable materials

• Vegetable preferred to petrochemical

• Competitive Landscape – consolidation

– Large players get larger (BASF/Cognis; Solvay/Rhodia)

– Provides space for smaller players with good technology and superior

customer service.

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Market Dynamics – Octane Additives

• TEL in motor gasoline – sunset industry

• Three remaining users – North Africa / Middle East

• Timing of transition to unleaded gasoline unclear

– Market feedback not easy to get

• Business unlikely to continue beyond 2014

• 2013 demand remains uncertain

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Market Dynamics – Oilfield Specialties

• Market continues to recover post-2009

• US shale drilling moved from gas to oil

– Depressed natural gas prices

– Need to be prepared for any reversal

• Emerging Shale Opportunities globally

– eg; UK development approval late 2012

• Environmental Concerns drive technology

– New technology to reduce environmental footprint

– R&D opportunities

• Competitive Landscape

– Some consolidation (eg; Halliburton / Multichem)

– Plenty room for smaller players to deliver good technology with

superior service levels.

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Strategy

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Innospec in Good Shape to Expand

• Solid base from which to expand

– We have continued to expand throughout the downturn

• Finances in good shape

– Strong balance sheet

– Even after almost $100m cash out in dividends and

acquisition costs in Q4.

• Corporate services fit for purpose

• Legacy compliance issues dealt with and behind us

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Innospec Strategy – Organic Growth

• Fuel Specialties

– Technology-driven ; Continued investment in R&D

• Engine technology and fuel quality offers opportunities

– Geographical expansion

• New offices established in Brazil and Russia

• Oilfield Specialties

– Focus on a small number of key customer relationships

– Strata acquisition is the first significant step

– Existing organisation augmented by new hires

– Low risk expansion into an adjacent market

– Widening of coverage :

• Drilling, completion and production chemicals

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• Performance Chemicals

– Technology Development

• Improved Performance - Surfactants, Benzoate Esters

• Customer drive for ‘natural’ green products

• Octane Additives

– Motor Gasoline

• Understand Mogas Customer Demand

• Ensure that customers who want to buy, can buy

– Aviation Gasoline

• Stay close to aviation fuel developments

– Maximise value from the asset – supply/demand

Innospec Strategy – Organic Growth

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Next Steps – Acquisition Strategy

• Finance position continues to be strong:

– Strong balance sheet

– Excellent bank support

• Acquisition Profiles

– Existing core markets (Personal Care, Oil Field Chemicals, Fuel

Additives)

– Smaller ‘technology’ acquisitions - $20m - $100m

– Remain alert for substantially larger opportunities in the latter part of

2013.

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TPC Group

• Innospec was involved in competitive bidding for TPC Group

• Large transformational acquisition with opportunities :

– Improved operation

– Synergies with Fuel Specialties

• Bid was supported by :

– Banks

– Private equity investment from Blackstone Capital

• Withdrew from the bid

– Decided that the return was not sufficient for our shareholders

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Balanced Capital Management Program

• Acquisitions remain a priority for growth

• 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.

– Further programs will be considered subject to cash

availability

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Key Management Metrics

•Sales Growth

•Gross Profit

•Operating Income

•Cash Flow

•Net Debt / EBITDA

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Delivering on our Commitments

Commitments (2009) Delivery (2010-2012)

Resolve FCPA Delivered

New Management Team Delivered

Organic Growth Delivered and continuing

Board Restructuring Delivered

Geographic Expansion (Brazil, Russia) Delivering

Market Expansion (Oilfield) Delivering

Strengthen Balance Sheet Delivered

Analyst Coverage Delivered

Acquisitions First one delivered – more to come

Buybacks & Dividend Buy-back (2011)

Dividend (2012)

Stock Price Improved by > 10x

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Summary

• Innospec delivered on 100% of its 2009 promises

• First acquisition now completed (Oilfield Specialties)

• Continue to seek further attractive acquisitions

• Balanced capital management program – 2012 dividend

• Underlying markets still in reasonable shape

• Competitive Position remains strong

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