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Innophos Holdings, Inc. | August 2019

Innophos Holdings, Inc.

INVESTOR PRESENTATION

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 (which 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 guidance 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 macroeconomic 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 complete 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 confidence 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 suppliers; (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 quality 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.

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Innophos Today

Investment Thesis

Strategic Priorities


Innophos: A Global Provider of Essential Ingredients

• Leading position in essential ingredients for the Food, Health, Nutrition and Industrial markets

• Versatile portfolio of ingredient solutions:

• Backed by science & technology

• Meet highest regulatory standards

• Informed by years of market leadership

• More than 70 countries served

• ~1,500 employees across 14 locations

Targeting growth in attractive FHN segment, strengthening cash-generating core business

Food, Health and Nutrition Industrial Specialties Other

60% 32%

8%

2018 SALES: $802M

11% SALES

2018 Full Year Growth (Year-Over-Year )

4% ADJUSTED EBITDA*

2018: YEAR-OVER-YEAR GROWTH ACROSS KEY METRICS

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61% NET INCOME

NASDAQ: IPHS IPO IN 2006

*Please refer to Appendix for reconciliation of non-GAAP items.


We Deliver Relevant, Science Backed Solutions

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Through our clinically backed brands, custom formulations, and high-quality specialty ingredients

FOOD, HEALTH & NUTRITION

INDUSTRIAL SPECIALTIES

MINERAL FORTIFICATION MINERAL CHELATION LEAVENING & WHITENING STABILIZATION TEXTURE MODIFICATION TABLET PERFORMANCE

ASPHALT PERFORMANCE PLANT NUTRITION FIRE SAFETY WATER TREATMENT

Innophos Holdings, Inc. | August 2019 6

Our Expanded Branded Ingredients Portfolio Aligns with Growth Platforms

IMMUNE HEALTH SPORTS PERFORMANCE BONE & JOINT HEALTH COGNITIVE HEALTH DIGESTIVE HEALTH WEIGHT MANAGEMENT

Strategic growth is focused on further expanding branded ingredients portfolio


Innophos Today

Investment Thesis



WHY INVEST

Positioned to Enhance Earnings & Deliver Sustainable Growth

A clearly defined path to profitable growth

Growing presence in attractive Food, Health &

Nutrition Markets

Strong financial performance, continuous

improvement culture

Purpose-driven organization led by high-

impact talent

• Proven track record of leveraging strong balance sheet and strong cash flow

• Balanced approach to capital allocation

• Shifting the mix via organic and inorganic initiatives

• Delivering relevant solutions for high growth FHN markets via SPARC

• Selectively evaluating M&A

• Unique people-centric culture

• Core values & purpose inform strategy

• Proven & experienced leadership team

• Vision 2022 strategy to:

• Strengthen our core

• Drive growth in attractive FHN markets

• Strategic Pillars provide blueprint to achieve Vision 2022 goals of

• $1.25Bn Revenue and 20% adjusted EBITDA* by 2022

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*Please refer to Appendix for reconciliation of non-GAAP items. 8


1. CLEAR PATH TO PROFITABLE GROWTH

Vision 2022 Strategy to Enhance Our Growth and Earnings Profile

*Please refer to Appendix for reconciliation of non-GAAP items. 9

Strengthen the Core

Drive Growth in FHN Markets

TARGETING

$1.25bn Sales

20% Adjusted EBITDA Margin*

Leveraging the benefits of our low-cost value chain

repositioning initiative

Capitalizing on Commercial Excellence

value selling

Advancing organic growth through SPARC new product development program Pursuing targeted inorganic opportunities Capitalizing on Commercial Excellence value selling


OPERATIONAL EXCELLENCE

• Leveraging new value chain structure to reduce cost structure

• 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*

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COMMERCIAL EXCELLENCE

• Value-selling model continues to support pricing power

STRATEGIC GROWTH

• SPARC program shifting portfolio mix to support future organic growth

• Selectively evaluating M&A to strengthen FHN platform consistent with strategic and financial criteria


Strategic Pillars Provide Blueprint to Realize Vision 2022 Goals




Excellent Progress with Strategic Value Chain Initiative

Transitioned Geismar facility to new low cost, multi source structure

Increased self-sufficiency of MGA supply from Coatzacoalcos, Mexico facility

Realized initial value chain benefits ahead of schedule in Q2 2019

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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*

Strengthens competitive position

Creates supply agility

Lowers cost position

VALUE CREATION KEY ACHIEVEMENTS



2. GROWING PRESENCE IN ATTRACTIVE FHN MARKETS

Driving Organic Growth and Portfolio Mix Shift with SPARC

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CUSTOMER-DRIVEN APPROACH TO R&D THAT STARTS WITH MARKETING AND SALES

DISCIPLINED STAGE GATE NEW PRODUCT DEVELOPMENT PROCESS

PRODUCES INNOVATIVE SOLUTIONS THAT ARE ALIGNED WITH CONSUMER MEGA TRENDS AND BENEFITS

CUSTOMER

SOLUTION

APPLICATION

BENEFIT

Large wellness company

Reformulation to meet regulation in Taiwan

Calcium and Magnesium supplement

Bone & Joint Health

RECENT SPARC ACHIEVEMENTS

CUSTOMER

SOLUTION

APPLICATION

BENEFIT

Holistic fitness corporation

Improved custom formulation

Lemonade drink mix

Weight Mgmt, Energy, Digestive Health

CUSTOMER

SOLUTION

APPLICATION

BENEFIT

Manufacturer of high-quality nutrition products

Increased density to reduce capsule size

Turmeric capsule

Heart Health, Anti-inflammatory, Antioxidant

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2

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Mega Trends Drive Demand and New Product Innovation

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• Clean label solutions for the food and beverage markets • Specialty nutritional blends targeting specific health benefits

• Multi-step scientific process to ensure mineral chelation • New plant nutrition products fortified with minerals

• Products that provide joint, immune and other benefits • Excipients that result in reduced tablet size

• Asphalt additives that result in better performance and improve safety of workers laying roads

• Water treatment solutions to prevent corrosion in pipes

Health & Wellness

Aging Population

Soil Depletion

Urbanization



Shifting the Mix to Attractive FHN Markets

By executing on our strategy we grew the FHN segment to

60% of our business in 2018 and are targeting 75% by 2022

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$22

$36

2017 2018

Net Income ($ in millions)

$722

$802

2017 2018

Revenue ($ in millions)

3. STRONG FINANCIAL PERFORMANCE

Topline and Bottom Line Results Supported by Strategic Initiatives

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$120

$125

2017 2018

Adjusted EBITDA*

($ in millions)

+11% +61% +4%



3. STRONG FINANCIAL PERFORMANCE

Track Record of Solid Cash Generation Supports Investments in Strategic Initiatives and Strong Shareholder Returns

$347m FREE CASH FLOW

(Excludes acquisitions)

$344m DIVIDENDS AND SHARE BUYBACK

$512m CASH FROM OPS

54% DIVIDEND PAYOUT RATIO

(% of Free Cash Flow)

OVER 5 YEAR PERIOD 2014-2018

R&D 5%

CapEx 57%

Dividends 38%

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2018 CAPITAL DEPLOYMENT


4. PURPOSE DRIVEN ORGANIZATION

Our Purpose and Values Drive our Strategy

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Our Core Values

Safety Diversity Integrity Collaboration

A Partner Creating


Innophos Today

Investment Thesis



Executing on Strategic Priorities to Drive Sustained Value

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On track to deliver margin growth in 2019 and achieve Vision 2022

• Leveraging new low-cost supply structure to reduce cost basis

• Proactively pursuing pricing efforts supported by value proposition

• Accelerating mix shift momentum with SPARC and

inorganic growth opportunities


Non-GAAP Reconciliations

Long Term Targets

Innophos is not able to provide a reconciliation of its expectation for adjusted earnings to 2019 GAAP net income given the dynamic nature of the strategic value chain repositioning program expenses and potential Mexico energy charges that may be incurred. In addition, Innophos is not able to provide a reconciliation of its 2022 expectation for adjusted EBITDA margin to GAAP net income due to the number of variables in the projected EBITDA margin for 2022. As a result we are currently unable to quantify accurately certain amounts that would be required to be included in GAAP net income for 2019 or 2022 or the individual adjustments for such reconciliation. In addition, we believe such reconciliation would imply a degree of precision that would be confusing or misleading to investors.

Additional Information

Free cash flow is a supplemental financial measure that is not required by, or presented in accordance with, US GAAP. The Company believes free cash flow is helpful in analyzing the cash flow generating capability of the business and as a performance measure for purposes of presentation in this investor presentation. The Company defines free cash flow as net cash provided from operating activities plus cash used for capital expenditures plus cash received from sale leaseback transactions.

EBITDA, adjusted EBITDA, adjusted net income and adjusted diluted EPS are supplemental financial measures that are not required by, or presented in accordance with, US GAAP. The Company believes EBITDA and adjusted EBITDA are helpful in analyzing the cash flow generating capability of the business and as performance measures for purposes of presentation in this investor presentation.

Net Working Capital and Operating Working Capital are supplemental financial measures that are not required by, or presented in accordance with, US GAAP. The Company believes net working capital and operating working capital are helpful in analyzing the effects on the cash flow generating capability of the business and as a performance measure for purposes of presentation in this investor presentation. The Company defines net working capital as total current assets less cash and cash equivalents less total current liabilities plus current portion of capital leases, and defines operating working capital as net working capital less taxes less interest.

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ABOUT THE COMPANY

Innophos is a leading international producer of essential ingredients. We partner with world-leading health & nutrition, food & beverage and industrial brands to create science-based solutions that improve quality of life. Our knowledgeable teams apply science to unlock the potential that lies within the blends and formulations that we deliver. Forward thinking and people centric at heart, we execute with purpose and efficiency to create value in everything we do. 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 'IPHS-G

CONTACT Investors: Mark Feuerbach, 609-366-1204 or [email protected] Media: Ryan Flaim, Sharon Merrill Associates, 617-542-5300 or [email protected]

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