Innophos Holdings, Inc. INVESTOR PRESENTATION AUGUST 2019 Innophos Holdings, Inc. | August 2019
Forward-Looking Statements This presentation contains or may contain forward-looking statements within the meaning of Section 27a of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The company intends these forward-looking statements to be covered by the safe harbor provisions for such statements. Statements made in this presentation that relate to our future performance or future financial results or other future events (w hich may be identified by such terms as “expect”, “estimate”, “anticipate”, “assume”, “believe”, “plan”, “intend’, “may”, “will”, “should”, “outlook”, “guidance”, “target”, “opportunity”, “potential” or similar terms and variations or the negative thereof) are forward- looking statements, including the Company’s expectations regarding the business environment and the Company’s overall gu idance regarding future performance and growth. These statements are based on our current beliefs and expectations and are subject to significant risks and uncertainties. Actual results may materially differ from the expectations expressed in or implied by these forward-looking statements. Factors that could cause the Company’s actual results to differ materially include, but are not limited to: (1) global macroe conomic conditions and trends; (2) the behavior of financial markets, including fluctuations in foreign currencies, interest rates and turmoil in capital markets; (3) changes in regulatory controls regarding tariffs, duties, taxes and income tax rates; (4) the Company’s ability to implement and refine its Vision 2022 strategic roadmap; (5) the Company’s ability to successfully identify and com plete acquisitions in line with its Vision 2022 strategic roadmap and effectively operate and integrate acquired businesses to realize the anticipated benefits of those acquisitions; (6) the Company ’s ability to realize expected cost savings and efficiencies from its performance improvement and other optimization initiatives; (7) the Company’s ability to effectively compete in its markets, and to successfully develop new and competitive products that appeal to its customers; (8) changes in consumer preferences and demand for the Company’s products or a decline in consumer c onf idence and spending; (9) the Company’s ability to benefit from its investments in assets and human capital and the ability to complete projects successfully and on budget; (10) economic, regulatory and political risks associated with the Company’s international operations, most notably Mexico and China; (11) volatility and increases in the price of raw materials, energy and transportation, and fluctuations in the quality and availability of raw materials and process aids; (12) the impact of a disruption in the Company’s supply chain or its relationship with its su ppl iers; (13) the Company’s ability to comply with, and the costs associated with compliance with, U.S. and foreign environmental protection laws and (14) the Company’s ability to meet qualit y and regulatory standards in different jurisdictions in which it has operations or conducts business. We caution you to consider the important risks and other factors as set forth in the forward-looking statements section and in Item 1A Risk Factors in our most recent Annual Report on Form 10- K, as amended by subsequent reports on Forms 10-Q and 8-K. We do not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements. Regulation G: Adjusted Results The information presented herein regarding certain unaudited adjusted results does not conform to generally accepted accounting principles in the U.S. (U.S. GAAP). Innophos has included this non-GAAP information to assist in understanding the operating performance of the company and its reporting segments. Please see reconciliations to the most directly comparable financial measure prescribed by U.S. GAAP in the appendix. 2 Innophos Holdings, Inc. | August 2019
Innophos Today Investment Thesis Strategic Priorities Innophos Holdings, Inc. | August 2019
Innophos: A Global Provider of Essential Ingredients Targeting growth in attractive FHN segment, strengthening cash-generating core business • Leading position in essential ingredients for the Food, Health, Nutrition NASDAQ: IPHS and Industrial markets IPO IN 2006 • Versatile portfolio of ingredient solutions: Backed by science & technology • 2018 SALES: $802M Meet highest regulatory standards • Informed by years of market leadership • 8% • More than 70 countries served • ~1,500 employees across 14 locations 32% 60% 2018 Full Year Growth (Year-Over-Year ) 2018: YEAR-OVER-YEAR GROWTH ACROSS KEY METRICS 11% 61% 4% Food, Health and Nutrition SALES ADJUSTED EBITDA* NET INCOME Industrial Specialties Other *Please refer to Appendix for reconciliation of non-GAAP items. 4 Innophos Holdings, Inc. | August 2019
We Deliver Relevant, Science Backed Solutions Through our clinically backed brands, custom formulations, and high-quality specialty ingredients FOOD, HEALTH & NUTRITION MINERAL FORTIFICATION MINERAL CHELATION LEAVENING & WHITENING STABILIZATION TEXTURE MODIFICATION TABLET PERFORMANCE INDUSTRIAL SPECIALTIES ASPHALT PERFORMANCE PLANT NUTRITION FIRE SAFETY WATER TREATMENT 5 Innophos Holdings, Inc. | August 2019
Our Expanded Branded Ingredients Portfolio Aligns with Growth Platforms IMMUNE HEALTH BONE & JOINT HEALTH COGNITIVE HEALTH DIGESTIVE HEALTH WEIGHT MANAGEMENT SPORTS PERFORMANCE Strategic growth is focused on further expanding branded ingredients portfolio 6 Innophos Holdings, Inc. | August 2019
Innophos Today Investment Thesis Strategic Priorities Innophos Holdings, Inc. | August 2019
WHY INVEST Positioned to Enhance Earnings & Deliver Sustainable Growth 1 2 3 4 A clearly defined path to Growing presence in Strong financial Purpose-driven profitable growth attractive Food, Health & performance, continuous organization led by high- Nutrition Markets improvement culture impact talent • Vision 2022 strategy to: • Shifting the mix via organic • Proven track record of • Unique people-centric • Strengthen our core and inorganic initiatives leveraging strong balance culture sheet and strong cash flow • Delivering relevant solutions • Drive growth in attractive • Core values & purpose • Balanced approach to for high growth FHN FHN markets inform strategy markets via SPARC capital allocation • Strategic Pillars provide • Proven & experienced • Selectively evaluating M&A blueprint to achieve Vision leadership team 2022 goals of • $1.25Bn Revenue and 20% adjusted EBITDA* by 2022 *Please refer to Appendix for reconciliation of non-GAAP items. 8 Innophos Holdings, Inc. | August 2019
1. CLEAR PATH TO PROFITABLE GROWTH Vision 2022 Strategy to Enhance Our Growth and Earnings Profile Strengthen Drive Growth in the Core FHN Markets TARGETING Leveraging the benefits of our Advancing organic growth through SPARC $1.25bn low-cost value chain new product development program Sales repositioning initiative Pursuing targeted inorganic opportunities 20% Capitalizing on Adjusted EBITDA Margin* Commercial Excellence Capitalizing on Commercial Excellence value selling value selling *Please refer to Appendix for reconciliation of non-GAAP items. 9 Innophos Holdings, Inc. | August 2019
1. CLEAR PATH TO PROFITABLE GROWTH Strategic Pillars Provide Blueprint to Realize Vision 2022 Goals OPERATIONAL EXCELLENCE COMMERCIAL EXCELLENCE STRATEGIC GROWTH • • • Leveraging new value chain structure to Value-selling model continues to support SPARC program shifting portfolio mix to reduce cost structure pricing power support future organic growth • • On track to deliver GAAP and adjusted Selectively evaluating M&A to strengthen diluted EPS improvement of $0.25 to $0.27 FHN platform consistent with strategic and per share annual run rate by end of 2019* financial criteria *Please refer to Appendix for reconciliation of non-GAAP items. 10 Innophos Holdings, Inc. | August 2019
1. CLEAR PATH TO PROFITABLE GROWTH Excellent Progress with Strategic Value Chain Initiative KEY ACHIEVEMENTS VALUE CREATION Transitioned Geismar facility to new Creates low cost, multi source structure supply agility Increased self-sufficiency of MGA Strengthens supply from Coatzacoalcos, Mexico competitive position facility Lowers Realized initial value chain benefits cost position ahead of schedule in Q2 2019 On track to deliver GAAP and adjusted diluted EPS improvement of $0.25 to $0.27 per share annual run rate by end of 2019* *Please refer to Appendix for reconciliation of non-GAAP items. 11 Innophos Holdings, Inc. | August 2019
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