Innophos Holdings, Inc.€¦ · Jefferies 2016 Industrials Conference, New York City | August 9, 2016 Safe Harbor • During the course of this presentation, management may make forward-looking

Innophos Holdings, Inc. Jefferies 2016 Industrials Conference, New York City August 9, 2016

Today’s Presenter

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Kim Ann Mink, Ph.D. Chief Executive Officer and President

Jefferies 2016 Industrials Conference, New York City | August 9, 2016

Safe Harbor

• During the course of this presentation, management may make forward-looking statements regarding financial performance and future events.

• We will attempt to identify these statements by use of words such as expect, believe, anticipate, intend, and other words that denote future events. You should understand that, even though our forward looking statements are based on assumptions we believe are reasonable when made, they are still subject to uncertainties that could cause actual results to differ materially from those in the forward-looking statements.

• We caution you to consider the important risk and other factors as set forth in the forward-looking statements section and in Item 1A risk factors in our Annual Reports on Form 10-K as filed with the U.S. Securities and Exchange Commission that could cause actual results to differ from those in the forward-looking statements as contained in this presentation.

• Forward looking statements made herein are summaries of previous public disclosures, do not represent revised guidance, and we do not undertake to revise or update them from the date or dates of previous disclosure.

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Innophos by the Numbers

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2 GLOBAL R&D

CENTERS

11 MANUFACTURING

FACILITIES

Technology and science driven specialty ingredients solutions

900 CUSTOMERS

10 YEARS ON

NASDAQ: IPHS

300 UNIQUE

PRODUCTS

40% SALES OUTSIDE USA

> 70 COUNTRIES

4 PRODUCT

TECHNOLOGIES

$0.8bn MARKET

CAPITALIZATION

1,400 EMPLOYEES


Serving Attractive and Resilient End Markets

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Reporting Segment

* 2015 Full Year Revenue: $789m

72%

21%

Specialty Phosphates US/Canada Specialty Phosphates Mexico GTSP & Other

7%

Food and Health Industrial Specialties By-products and Other

US/Canada Mexico South America Asia-Pacific EMEA

52% 39%

9%

64%

14%

4%

Market Segment Geography

3%

Revenue*


15%

Innophos – Who We Are

• IPO in 2006. Nasdaq symbol: IPHS

• Leading position in functional ingredients across food, health and industrial specialties markets

• Technology and science driven with over a century of phosphates experience, and capability in other nutritional ingredients

• Supply capability centered in North America with >70 countries served

• ~1,400 employees across 12 locations

• 2015 Revenue of $789m. Adjusted EBITDA of $118m

• Strong cash flow delivery in mature market environment

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Who we are not: a commodity oriented, vertically integrated, mining and fertilizer end-market company


Investment Thesis

• Phosphate: versatile ingredient providing core and economic functionality for food and beverages

• #1 or #2 positions in core product lines

• Industry leading manufacturing capability

• Energized leadership team with strong financial, yet disciplined, ambition

• Attractive EBITDA profile for Specialty Phosphates; >90% of total Company

• Steady cash delivery. Strong cash conversion rate

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Free Cash Flow (1)

12

99

>$300m FREE CASH FLOW (1)

OVER 5 YEAR PERIOD 2011-2015

0%

50%

100%

150%

200%

250%

300%

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

2011 2012 2013 2014 2015

$ Millions % FCF Conversion

12

67

58

99

67

$329m DIVIDENDS AND SHARE BUYBACK



(1) Excludes acquisitions

Leading Position in Phosphate Technology

Phosphates have a broad range of functionalities and can be found in everyday food and beverages; breakfast, lunch and dinner

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A versatile ingredient for food and beverage applications

Meat, poultry and seafood Binding and hydration of delicatessen meats. Cured pork products (ham, bacon); comminuted meats (frankfurters, bologna); precooked breakfast sausages; poultry pieces (breasts, wings), and breaded chicken products (tenders, nuggets).

Baked goods The major use of phosphates in cereal and grain products is the leavening of cakes, cookies, muffins, doughnuts, crackers, biscuits, battered and breaded foods, pancakes, and waffles

Dairy Fluidity of evaporated milk, even melt of processed cheese. Protein dispersion, to buffer, for ion exchange, acidification, gelation promotion, nutrient supplementation, and sequestrants

Beverages The distinctive flavor of cola beverages; the mineral content of isotonic beverages


Megatrends Inform Our Direction

• Health and Wellness

• Energized Ageing

• Convenience and Time Effectiveness

• Protection and Preservation

• Clean Label/Greener Food

• Sustainability

• Indulgence and Exclusivity

• Affordability

• Multicultural Consumerism

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Markets and Applications

Strategic Approach

Strengthen the core

Expand into adjacencies

Pursue strategic partnerships

Responding to consumer trends and customer needs with our technology and science


Managing the Present, Planning for the Future

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Strong Organization and Cultural Transformation

Value Creation

Operational Excellence

Commercial Excellence

Strategic Growth


Operational Excellence

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Continuous improvement and every day great execution


CORPORATE SCORECARD

Volume ________________________

EBITDA ________________________

Working Capital ________________________

Expense ________________________

CapEx ________________________

ROIC ________________________

• Get the business “fit”

• Drive better alignment across business segments

• Establish a routine and robust integrated business management process

• Increase supply chain visibility to drive faster response to changing market conditions

• Implement lean manufacturing to drive efficiency, reduce costs and increase utilization

Commercial Excellence

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Marketing and technology to drive customer engagement and value creation


Align product and service offerings with customer needs and preferences

Establish purposeful decision processes to ensure that we are capturing the value we deliver to the market

Manage input costs and pricing while evolving mix to higher value products and services

Customer Segmentation

Sales Channel Management

Pricing Discipline

Margin Management

Deliver the right products through the right channels to the right customers

MARKETING + R&D

Portfolio Management

Investments in new products and innovation

M&A in adjacent markets

Strategic Growth

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Strengthen core and accelerate growth through M&A


Building a Strong Management Team

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2015 2016

12/15 Kim Ann Mink

appointed CEO and President

04/16 Han Kieftenbeld

appointed SVP and CFO

04/16 Amy Hartzell appointed

VP Supply Chain and Purchasing

07/16 Sherry Duff appointed

VP and CMO 12/15

Robert Zatta and Peter Thomas appointed to

Board of Directors

Energized leadership team with strong financial, yet disciplined, ambition

• Market and customer driven

• Industry knowledgeable

• Strategically driven

• Functionally adept

• Continuous improvement oriented

• Globally experienced

Focused on expanding company’s leadership positioning


Perform and Transform to Maximize Shareholder Value

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Perform

Transform

• Continuous improvement and disciplined execution

• Ongoing focus on cash generation

• Enhanced return on investment

• Criteria based capital allocation

• Greater external transparency

• Strengthen the core

• Pursue growth informed by megatrends

• Differentiated focus and ambition by segment

• Leverage technology and science

• Optimize the supply network

&

Balancing profitability, risk and growth

=


Strong Shareholder Return

Approach

• Balance profitability, risk and growth

• Apply disciplined investment criteria

• Maintain capital structure flexibility

Capital allocation

• Targeted investments in our core business

• Value enhancing M&A opportunities

• Return excess cash to shareholders

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12

99

0%

20%

40%

60%

80%

100%

120%

140%

160%

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

2011 2012 2013 2014 2015

$ Millions % Pay-out ratio

20 25 32 38 39

Cash Returned to Shareholders

>$300m FREE CASH FLOW (1)


$329m DIVIDENDS AND SHARE BUYBACK


6 7 7

30

125

Share buy back Dividends Pay-out ratio

24%

35%

66% 60%

149%


(1) Excludes acquisitions

ABOUT THE COMPANY Innophos (NASDAQ: IPHS) is a leading international producer of performance critical and nutritional specialty ingredients, with applications in food, beverage, dietary supplements, pharmaceutical, oral care, and industrial end markets. Headquartered in Cranbury, New Jersey, Innophos has manufacturing operations across the United States, in Canada, Mexico and China. For more information please visit www.innophos.com

CONTACT Investors: Mark Feuerbach, 609-366-1204 or [email protected] Media: Bryan Armstrong, FTI Consulting, Inc., 312-553-6707


Documents

Innophos Holdings, Inc.€¦ · Jefferies 2016 Industrials Conference, New York City | August 9, 2016 Safe Harbor • During the course of this presentation, management may make forward-looking