What changed in this filing

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Item 1. Business

2025-02-19 compared with 2024-02-14 · 53 added, 34 removed, 144 unchanged (38% of the section changed)

5 unchanged sentences

Our Fuel Specialties business specializes in manufacturing and supplying fuel additives that improve fuel efficiency, boost engine performance and reduce harmful emissions.

Our Oilfield Services business supplies drilling, completion and production chemicals which make exploration and production more cost-efficient and environmentally friendly.

Our Oilfield Services business supplies chemicals for drilling, completion, production and drag reducing agents ("DRA") which make oil and gas exploration and production more cost-efficient and environmentally friendly.

Segment Information

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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.

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.

On December 8, 2023, we acquired QGP Química Geral (“QGP”) which we believe is strengthening our Performance Chemicals segment and has added a manufacturing base in South America to compliment all of our end markets.

Fuel Specialties

2 unchanged sentences

and are most commonly used in the efficient operation of commercial trucking, marine and aviation engines, power station generators, heating oil and other industrial machinery applications.

The segment has grown organically through our development of new products to address increased demand for fuel, focus on fuel economy, higher efficiency engine technologies and legislative developments, including tightening global emissions regulations.

The segment has grown organically through our development of new products to address increased demand for fuel, focus on fuel economy, compatibility of renewable fuels, higher efficiency engine technologies and legislative developments, including tightening global emissions regulations.

We are also applying these fuels technologies to an increasing number of non-fuel applications in a variety of industries.

1 unchanged sentence

Oilfield Services

Our Oilfield Services segment develops and markets chemical solutions for drilling, completion, production and oil and gas applications.

Our Oilfield Services segment develops and markets chemical solutions for drilling, completion, production, DRA and oil and gas applications.

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.

16 unchanged sentences

These purchases account for a substantial portion of the Company’s variable manufacturing costs.

These materials are, with the exception of ethylene for our operations in Germany, available from more than one source.

These materials are, with the exception of ethylene for one of our operations in Germany, available from more than one source.

Although ethylene is, in theory, available from several sources, it is not permissible to transport ethylene by road in Germany.

15 unchanged sentences

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.

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%).

In 2023, the Company had a significant customer in the Oilfield Services segment which accounted for $265.2 million and 13.6% (2022 - $222.2 million and 11.3%) of the group's net sales.

In 2024, the net sales to this customer did not exceed 10% of the group's net sales.

Certain markets in which the Company operates are subject to significant competition.

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.

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.

Performance Chemicals:

5 unchanged sentences

We consider our competitive edge to be our proven technical development capacity, independence from major oil companies and strong long-term customer relationships.

We believe we remain the world’s only producer of tetra ethyl lead (“TEL”) for use in aviation gasoline, which we market as our AvGas product line.

We believe we remain the world’s only producer of tetra ethyl lead for use in aviation gasoline, which we market as our AvGas product line.

Oilfield Services:

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During this registration and continual evaluation process, the Company incurs expenses to test and register substances it manufactures or imports in the E.U..

Following the end of the Brexit transition process, on January 11, 2021 the U.K.

government introduced U.K.

REACH with the same registration requirements for substances produced in or imported into the U.K.

Furthermore, globally, similar regulatory regimes to the E.U.

including U.K.

REACH are also entering into force or are being proposed in several other countries.

2 unchanged sentences

As part of our commitment to being open and transparent about our performance, our latest Responsible Business Report, which is our 2023 Report, was independently assured to assess its adherence to the globally recognized AA1000 Assurance Standard.

The Responsible Business Report, along with further information on our sustainability program and performance is available online in the “Corporate Social Responsibility” section of the Company’s website at https://innospecsustainability.com .

Such information does not constitute part of, and is not incorporated by reference into this Annual Report on Form 10-K.

Employees and Human Capital Management

The Company had approximately 2,400 employees in 22 countries as at December 31, 2023.

Human capital management is critical to Innospec’s ongoing business success, which requires investing in our people.

Our aim is to create a highly engaged and motivated workforce where employees are inspired by leadership, engaged in purpose-driven, meaningful work and have opportunities for growth and development.

Human Capital Management

We work hard to make the company an attractive career choice for both new recruits and existing employees.

Human capital management is critical to Innospec’s ongoing business success.

Our aim is to create an engaged and motivated workforce where employees are inspired by leadership, engaged in purpose-driven, meaningful work and have opportunities for growth and development.

An effective approach to human capital management requires that we invest in talent development, culture and employee engagement.

We aim to create an environment where our employees are encouraged to make positive contributions and fulfill their potential.

The Company’s Board of Directors (the “Board”) is also actively involved in reviewing and approving executive compensation, selections and succession plans so that we have leadership in place with the requisite skills and experience to deliver results the right way.

The Company’s Chief Executive Officer (“CEO”) periodically provides the Board with an assessment of senior executives that have potential as successor for the CEO position, as well as perspectives on potential candidates for other senior management positions.

Core Values & Culture

Responsible Growth through Innovation and Customer Service:

Responsible Growth:

Financial stability and growth are essential to maintain our goal of making a positive contribution towards a more sustainable future.

Generating economic benefits for our employees, stockholders, and local communities, while encouraging ongoing innovation in our product portfolio alongside excellent customer service which will allow our business to be competitive and sustainable.

Generating economic benefits for our employees, stockholders, and local communities, encouraging ongoing innovation in our product portfolio alongside excellent customer service, financial stability and responsible growth, will allow our business to be competitive and sustainable.

Caring for People:

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Conserving & Protecting the Environment:

We aim to use resources as efficiently as practicable and minimize the impact of our operations on the environment.

We aim to use resources as efficiently as practicable and minimizing the impact of our operations on the environment.

We look to supply safe, sustainable products, designed to meet the needs of society now and in the future while minimizing their environmental impact.

3 unchanged sentences

We uphold a high standard of corporate and business integrity across all of our activities.

At Innospec, we encourage our people to aspire to a culture that is:

We know what is expected of us and take responsibility for our own workload.

We assume responsibility for making decisions and are flexible in our dealings with people.

We take additional responsibility to meet customer needs and enhance performance.

We take pride in being good at what we do and actively seek to enhance our knowledge and skills to help improve performance.

We use our expertise co-operatively to meet customer needs and enhance our performance.

We respect each other and listen carefully to understand others’ points of view.

As an organization, we are open and transparent.

We encourage and welcome feedback and we support people to deal with any unwelcome messages.

Our people are forward thinking and inspired.

We enjoy challenges and encourage new ideas.

We seek continual improvement, and care about treating people well through periods of change.

We are performance driven, enthusiastic and quick to respond.

We set clear targets and objectives and take satisfaction in achieving them.

We want to be part of a successful team and business, and we make decisions quickly and implement them.

Employee Engagement

4 unchanged sentences

We strive to attract and retain the best talent in a changing and competitive working environment.

As an organization, we are committed to making Innospec a great company to work for and we invest, as appropriate, in the development of our employees to meet this ambition.

Our employees are offered both internal and external training, where appropriate, to support their continued development and to meet the needs of our business.

Where relevant, we support our employees’ ongoing professional training and development to encourage their progression within our business.

Pay and benefits:

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Together with their line managers, employees agree upon annual objectives, and, at the end of the year, review with their line manager their performance against those objectives and their overall performance.

The results of each annual performance review affect performance bonus amounts, pay reviews and career advancement decisions.

The results of each annual performance review affect performance bonus amounts, pay adjustment and career advancement decisions.

Senior Leadership Communications and Transparency:

We actively seek opportunities for regular engagement and communication by our CEO, CFO and other senior executives with our broader employee population.

We actively seek opportunities for regular engagement and communication by our Chief Executive Officer (“CEO”) and other Senior Executives with our broader employee population.

Communications are through a variety of means including written communications, webcasts and conference calls.

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.

The CEO/CFO Call is accessible to all employees across the Company.

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.

For example, we hold a CEO Call at least once a year, during which the CEO and Chief Financial Officer ("CFO") discuss current issues and developments in the business, including a Q&A session answering questions raised by employees.

The CEO Call is accessible to all employees across the Company.

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.

Diversity and Inclusion

Innospec aims to attract and retain the best people by ensuring that employment decisions are based on merit, performance, ability and contribution to the Company.

As part of our Global HR Policy, our diversity and equal opportunities policy ensures that current and prospective employees receive equal opportunities irrespective of gender, sexual orientation, race, color, ethnic or national origin, marital status, age, disability, religion or belief.

Innospec aims to attract and retain the best people by making employment decisions that are based on merit, performance, ability, and contribution to the Company.

As part of our Global HR Policies, our diversity and equal opportunities policy means that current and prospective employees receive equal opportunities irrespective of sex or gender (including pregnancy, childbirth and pregnancy-related conditions), gender identity or expression, genetic information, marital status, sexual orientation, race, color, ethnic or national origin, age, disability, religion, creed or belief or any other characteristic protected by applicable local legislation.

Health and Safety

1 unchanged sentence

We set high standards for process and occupational safety, which is managed by our network of Safety, Health and Environment (“SHE”) professionals throughout the business.

Our three core objectives being that:

SHE is a top priority for Innospec with our three core objectives being:

No-one gets hurt

We do not annoy our neighbors

We don’t negatively impact our neighbors

We leave only the gentlest footprints on our environment

It is our goal to make sure that everybody returns home safe at the end of the working day.

The Company periodically reviews the Corporate SHE structure and organization so that we have the optimum resources and correct approach.

1 unchanged sentence

Our Responsible Care Executive Committee (known as RESPECT) comprises members of the senior leadership team and is led by the CEO.

RESPECT is responsible for setting the group’s SHE and Sustainability policies and objectives across the global business.

RESPECT is responsible for setting the group’s SHE policies and objectives across the global business.

It also monitors ongoing performance in these areas throughout the year.

Through this structure, we have established a strong culture of safety within our organization.

The RESPECT committee reports to the Company’s Board of Directors (the “Board”) and conducts a major review of objectives and performance annually alongside quarterly interim reviews.

Training is an essential part of our health and safety strategy.

2 unchanged sentences

Every year, employees across our sites take part in a variety of site-specific training courses to enable them to be competent and safe in their roles.

A copy of the Company’s Safety, Health and Environment Policy can be found on the “Sustainability” section of the Company’s website at www.innospecsustainability.com , but does not constitute part of, and is not incorporated by reference into, this Form 10-K.

Development and Training

As an organization, we are committed to making Innospec a great company to work for and we invest, as appropriate, in the development of our employees to meet this ambition.

Our employees are offered both internal and external training, where appropriate, to support their continued development and to meet the needs of our business.

Where relevant, we support our employees’ ongoing professional training and development to encourage their progression within our business.

The Board is also actively involved in reviewing and approving executive compensation, selections and succession plans so that we have leadership in place with the requisite skills and experience to deliver results the right way.

The CEO periodically provides the Board with an assessment of each Senior Executive that has the potential to be a successor for the CEO position, as well as perspectives on potential candidates for other senior management positions.

Further information on our human capital management initiatives is available online in the Company’s website at www.innospecsustainability.com , but does not constitute part of, and is not incorporated by reference into, this Form 10-K.

Available Information

7 unchanged sentences

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.

What changed 10-K

Item 1. Business