+Added: Item 1 Business
When we use the terms “Innospec,” “the Corporation,” “the Company,” “Registrant,” “we,” “us” and “our,” we are referring to Innospec Inc.
and its consolidated subsidiaries unless otherwise indicated or the context otherwise requires.
−Removed: Innospec develops, manufactures, blends, markets and supplies a wide range of specialty chemicals to markets in the Americas, Europe, the Middle East, Africa and Asia-Pacific.
−Removed: Our Performance Chemicals business creates innovative technology-based solutions for our customers in the personal care, home care, agrochemical, mining and industrial markets.
+Added: Innospec develops, manufactures, blends, markets and supplies a wide range of specialty chemicals to customers in the Americas, Europe, the Middle East, Africa and Asia-Pacific.
+Added: Our Performance Chemicals business creates innovative technology-based solutions for the personal care, home care, agrochemical, construction, mining and other industrial markets.
Our Fuel Specialties business specializes in manufacturing and supplying fuel additives that improve fuel efficiency, boost engine performance and reduce harmful emissions.
−Removed: Our Oilfield Services business supplies drilling, completion and production chemicals which make exploration and production more effective, cost-efficient and environmentally friendly.
+Added: Our Oilfield Services business supplies drilling, completion and production chemicals which make exploration and production more cost-efficient and environmentally friendly.
Segment Information
The Company reports its financial performance based on three reportable segments which are Performance Chemicals, Fuel Specialties and Oilfield Services.
−Removed: Our Octane Additives segment has previously ceased trading and is no longer a reporting segment from July 1, 2020, as reported in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020.
For financial information about each of our segments, see Note 3 of the Notes to the Consolidated Financial Statements.
Performance Chemicals
−Removed: Our Performance Chemicals segment provides innovative technology-based solutions for our customers’ processes or products focused in the personal care, home care, agrochemical, mining and other industrial markets.
+Added: Our Performance Chemicals segment provides innovative technology-based solutions for our customers’ processes or products in personal care, home care, agrochemical, construction, mining and other industrial markets.
This segment has grown through acquisitions, together with the organic development and marketing of innovative products in these end-markets.
Our customers in this segment include large multinational companies, manufacturers of personal care and home care products and global mining, agriculture and building products and other industrial companies.
+Added: On December 8, 2023, we acquired QGP Química Geral (“QGP”) which we believe will further strengthen our Performance Chemicals segment and add a manufacturing base in South America to compliment all of our end markets.
Fuel Specialties
6 unchanged sentences
Oilfield Services
−Removed: Our Oilfield Services segment develops and markets chemical solutions for fracturing, drilling, stimulation and completion operations, products for oil and gas production and transport which aid flow assurance and maintain asset integrity.
−Removed: Our customers in this segment include multinational public and independent exploration & production and oilfield services companies currently operating principally in the Americas.
+Added: Our Oilfield Services segment develops and markets chemical solutions for drilling, completion, production and oil and gas applications.
+Added: Our customers in this segment include multinational public and independent exploration & production and oilfield services companies operating principally in the Americas and the Middle East.
Our strategy is to develop new and improved products and technologies to continue to strengthen and increase our market positions within our Performance Chemicals, Fuel Specialties and Oilfield Services segments.
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We do not believe that this is materially different to our competitors.
−Removed: The purchase of large amounts of certain raw materials across all our segments can create some variations in working capital requirements, but these are planned and managed by the business.
+Added: The purchase of large amounts of certain raw materials across all of our segments can create some variations in working capital requirements, but these are planned and managed by the business.
We do not believe that our terms of sale or purchase differ markedly from those of our competitors.
13 unchanged sentences
Intellectual Property
−Removed: Our intellectual property, including trademarks, patents and licenses, forms a significant part of the Company’s competitive advantage for all our segments.
−Removed: The Company does not, however, consider its business as a whole to be dependent on any one trademark, patent or license.
+Added: Our intellectual property, including trademarks, patents and licenses, forms a significant part of the Company’s competitive advantage for all of our segments.
+Added: The Company does not, however, consider its business to be dependent on any one trademark, patent or license.
The Company has a portfolio of trademarks and patents, both granted and in the application stage, covering products and processes in several jurisdictions.
−Removed: The majority of these patents were developed by the Company and, subject to maintenance obligations including the payment of renewal fees, have at least 10 years life remaining.
−Removed: The trademark “Innospec and the Innospec device” in Classes 1, 2 and 4 of the “International Classification of Goods and Services for the Purposes of the Registration of Marks” are
−Removed: registered in all jurisdictions in which the Company has a significant market presence.
+Added: The majority of these patents have at least 10 years life remaining.
+Added: The trademark “Innospec and the Innospec device” in Classes 1, 2 and 4 of the “International Classification of Goods and Services for the Purposes of the Registration of Marks” are registered in all jurisdictions in which the Company has a significant market presence.
The Company also has trademark registrations for certain product names in all jurisdictions in which it has a significant market presence.
1 unchanged sentence
In addition, we vigorously participate in patent opposition proceedings around the world where necessary to secure a technology base free from infringement of intellectual property.
−Removed: In 2022, the Company had a significant customer in the Oilfield Services segment which accounted for $222.2 million (11.3%) of our net group sales.
+Added: In 2023, the Company had a significant customer in the Oilfield Services segment which accounted for $265.2 million (13.6%) of our net group sales (2022 - $222.2 million and 11.3%).
Certain markets in which the Company operates are subject to significant competition.
−Removed: The Company competes on the basis of a number of factors including, but not limited to, product quality and performance, specialized product lines, customer relationships and service, and regulatory expertise.
+Added: The Company competes based on a number of factors including, but not limited to, product quality and performance, specialized product lines, customer relationships and service, and regulatory expertise.
Performance Chemicals:
−Removed: Within the Performance Chemicals segment we operate in the personal care, home care, agrochemical, mining markets and other industrial markets, which are highly fragmented, and the Company experiences substantial competition from a large number of multinational and specialty chemical suppliers in each geographical market.
−Removed: Our competitive position in these markets is based on us supplying a superior, diverse product portfolio which solves particular customer problems or enhances the performance of new or existing products.
+Added: Within the Performance Chemicals segment we operate in the personal care, home care, agrochemical, construction, mining and other industrial markets, which are highly fragmented, and the Company experiences substantial competition from a large number of multinational and specialty chemical suppliers in each geographical market.
+Added: Our competitive position in these markets is based on us supplying a superior, diverse product portfolio which solves customer problems or enhances the performance of new or existing products.
In a number of specialty chemicals markets, we also supply niche product lines, where we enjoy market-leading positions.
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Research, Development, Testing and Technical Support
−Removed: Research, product/application development and technical support (“R&D”) provide the basis for the growth of our Performance Chemicals, Fuel Specialties and Oilfield Services
+Added: Research, product/application development and technical support (“R&D”) provide the basis for the growth of our Performance Chemicals, Fuel Specialties and Oilfield Services segments.
Accordingly, the Company’s R&D activity has been, and will continue to be, focused on the development of new products and formulations.
3 unchanged sentences
Our Performance Chemicals business has launched significant new mild surfactants, which are well aligned with developing customer needs.
−Removed: In addition, the business has developed further formulations in emollients, silicones and surfactants for the personal care, home care, agrochemical, mining markets and other industrial markets.
+Added: In addition, the business has developed further formulations in emollients, silicones and surfactants for the personal care, home care, agrochemical, construction, mining and other industrial markets.
Fuel Specialties has continued to innovate, focused on bringing new technologies to market which reduce pollution and improve fuel economy, including detergents and cold flow improvers.
3 unchanged sentences
Management believes that the Company is in material compliance with applicable environmental laws and has made the necessary provisions for the continued costs of compliance with environmental laws.
−Removed: Our principal site giving rise to asset retirement obligations is our Ellesmere Port manufacturing site in the United Kingdom.
+Added: Our principal site giving rise to asset retirement obligations is our Ellesmere Port manufacturing site in the United Kingdom (“U.K.”).
There are also asset retirement obligations and environmental remediation liabilities on a much smaller scale in respect of other manufacturing sites.
We regularly review the future expected costs of remediation, and the current estimate is reflected in the Consolidated Balance Sheets and Note 13 of the Notes to the Consolidated Financial Statements.
−Removed: The European Union (“E.U.”) legislation known as the Registration, Evaluation and Authorization of Chemical Substances Regulations (“REACH”) requires most of the substances in the Company’s products to be registered with the European Chemicals Agency.
+Added: The European Union (“E.U.”) legislation known as the Registration, Evaluation and Authorization of Chemical Substances Regulations (“REACH”) requires most of the substances in the Company’s products to be registered with the European Chemicals Agency (ECHA).
Under this legislation the Company has to demonstrate that the substances it uses in its products are safe for use and appropriate for their intended purposes in the E.U..
During this registration and continual evaluation process, the Company incurs expenses to test and register substances it manufactures or imports in the E.U..
−Removed: Following the end of the Brexit transition process, on January 11, 2021 the United Kingdom (“U.K.”) government introduced U.K.
+Added: Following the end of the Brexit transition process, on January 11, 2021 the U.K.
+Added: government introduced U.K.
REACH with the same registration requirements for substances produced in or imported into the U.K.
2 unchanged sentences
These registration-based regulatory regimes will result in increasing test expenses and registration fees to ensure Innospec products remain compliant with the appropriate regulations and can continue to be sold in these markets.
−Removed: Environmental, Social & Governance (“ESG”) and Corporate Social Responsibility Reporting
+Added: Environmental, Social & Governance and Corporate Social Responsibility Reporting
As part of our commitment to being open and transparent about our performance, our latest Responsible Business Report, which is our 2022 Report, was independently assured to assess its adherence to the globally recognized AA1000 Assurance Standard.
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We aim to use resources as efficiently as practicable and minimize the impact of our operations on the environment.
−Removed: We look to supply
−Removed: safe, sustainable products, designed to meet the needs of society now and in the future while minimizing their environmental impact.
+Added: We look to supply safe, sustainable products, designed to meet the needs of society now and in the future while minimizing their environmental impact.
Leading by Example:
22 unchanged sentences
Senior Leadership Communications and Transparency:
−Removed: We actively seek opportunities for regular engagement and communication by our CEO and other senior executives with our broader employee population.
+Added: We actively seek opportunities for regular engagement and communication by our CEO, CFO and other senior executives with our broader employee population.
Communications are through a variety of means including written communications, webcasts and conference calls.
−Removed: For example, we hold a CEO Call at least once a year, during which the CEO and CFO discuss current issues and developments in the business, including a Q&A session answering questions raised by employees.
−Removed: The CEO Call is accessible to all employees across the Company.
−Removed: In addition to the CEO Calls, each financial quarter, following the quarterly financial results announcement, the CEO and CFO provide a written review of the financial results to all employees.
+Added: For example, we hold a CEO/CFO Call at least once a year, during which the CEO and CFO discuss current issues and developments in the business, including a Q&A session answering questions raised by employees.
+Added: The CEO/CFO Call is accessible to all employees across the Company.
+Added: In addition to the CEO/CFO Calls, each financial quarter, following the quarterly financial results announcement, the CEO and CFO provide a written review of the financial results to all employees.
Diversity and Inclusion
6 unchanged sentences
No one gets hurt
−Removed: We don’t annoy our neighbors
+Added: We do not annoy our neighbors
We leave only the gentlest footprints on our environment
14 unchanged sentences
In addition, the SEC maintains an internet site at www.sec.gov that contains reports, proxy and information statements, and other information that we file electronically with the SEC.
−Removed: The Company routinely posts important information for investors on its website (under Investors).
+Added: The Company routinely posts important information for investors on its website (under Investor Relations).
The Company uses this website as a means of disclosing material, non-public information and for complying with its disclosure obligations under SEC Regulation FD (“Fair Disclosure”).
−Removed: Accordingly, investors should monitor the Investors portion of the Company’s website, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.
+Added: Accordingly, investors should monitor the Investor Relations portion of the Company’s website, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.