Our innovative range of specialty phosphate ingredients impacts millions of lives everyday C Y D E T E R G E N O R A L C A R E U S T RIA L D IN D O F O N U T R I T I O N A L S U P P L E M E N T S Take a look around. Our specialty phosphates are key to the performance of our customers’ products — benefiting millions of their customers too. With a history that spans more than a century, Innophos, the largest North American (U.S., Canada, Mexico) specialty phosphate producer, has built its reputation and business success on delivering the best in phosphate innovation and technology to our customers and, as a result, to their customers everywhere. We deliver functional ingredients, engineered to meet or exceed the performance needs our long-time customers have come to expect. In fact, it’s why we are often their first-choice supplier. Our specialty phosphate technologies provide improved texture, mineral fortification, enhanced color, better flavor and appearance in a wide array of foods, beverages and nutritional supplements. They can even help purify the water we drink. We field a veteran management team averaging more than 20 years of industry experience. When it comes to specialty phosphates and innovative products, Innophos is a clear-cut leader. 1 Innophos for good taste, good health Innophos customers in the food/beverage/pharma markets choose our products because we deliver the functional ingredients they need. Phosphates are also essential for life. The latest science on calcium phosphates and bone health, for example, demonstrates that calcium supplements are delivered to the body more effectively when combined with phosphates resulting in: bioavailability equal to milk, dual nutrient source, stronger and healthier bones, and superior calcium fortification. Other uses include multivitamins, dietary supplements, breakfast bars, yogurt, orange juice, soy and milk, and fruit-based beverages. 2 In baking, for example, phosphates serve as chemical leavening ingredients that make the cakes rise and provide texture. Over the years, in fact, baking powders derived from phosphates have replaced yeast in doughnuts, cakes and other baked goods as the mechanism for controlling the rate at which the dough rises. Specialty phosphates are critical ingredients for making a moist, delicious piece of cake. Innophos phosphate products also are making a difference in beverages, whether for calcium fortification or providing much needed electrolytes, such as potassium, for “fitness” water and sports drinks. Our products also enhance taste in colas and other soft drinks. Innophos’ product innovation plays a critical role in meeting the three major trends in the food and beverage industry today: health, taste and convenience. Imagine an éclair, and then compare it to a slice of chocolate cake. They are both mouth-watering, but when it comes to texture, they aren’t the same. That’s where our innovation makes the difference. We are constantly perfecting the science of combining phosphates with other ingredients to give our major customers the right reaction rate, so their baked goods can be the best on the market. For deli meats, Innophos phosphates are used to boost shelf life while, at the same time, improve texture. What does that mean? Innophos phosphates prevent moisture loss and provide better color retention and, in the end, a much better customer experience. The same holds true for seafood, especially high-value products such as shrimp and lobster. Our specialty phosphates extend shelf life and improve texture in these valuable food product lines. We also look to develop new products for the fast-growing food segments. For example, Innophos specialty phosphates are being used in making better tortillas, mainly as a way to improve “rollability” and reduce “tearing” – two critical aspects of this increasingly popular food product. Along those lines, one of our most exciting new products, Cal-RISE®, not only produces the right leavening and texture in cakes, it also reduces sodium and provides much needed calcium – major health issues among families today. Our VersaCAL® Clear product is especially formulated for clear beverages, providing an excellent calcium and phosphorus source, and VersaCAL® DA is an ideal phosphate for delivering calcium in fruit beverages. Finally, Innophos offers a wide range of products for consumer oral care, mainly in dentifrice applications for cleaning, polishing and therapeutic purposes. Innophos specialty phosphates, for example, are used in toothpaste, as well as specialty products such as those that remove nicotine and tea stains from teeth. Our customers rely on Innophos to deliver the critical functionality that makes their products a success in the marketplace. 3 Innophos adds value in household and industrial markets The next time you drive down the highway, your car’s tires just might be rolling on a better, longer-lasting road surface thanks to an Innophos phosphate product. Why? Because INNOVALT®, our innovative line of asphalt modifier products, improves asphalt performance, delivering a more durable, longer-lasting pavement. It also has potential for asphalt roofing, sealing and coating applications. 4 The next time you run the dishwasher, Innophos polyphosphates could have helped your dishes come out cleaner. These are just a few of dozens of ways Innophos is delivering improved “functionality” to our customers in the industrial, institutional and household markets. Apart from asphalt and detergents, Innophos performance phosphates are used in a variety of our industrial products, including: Cements – Aids in dispersion when mixed with water. Clay – Also a dispersion aid. Ceramics – Improved bonding and other properties. Drilling muds – Improved dispersion. Electronics – Improved semiconductor manufacturing. Water Treatment – Prevents leaching of lead from pipes. Finally, Innophos phosphates provide critical functionality to certain processes in plastic/rubber/polystyrene manufacturing, water treatment, pulp and paper production, textile manufacturing, industrial chemical manufacturing, leather manufacturing and the production of antifreeze. As you can see, Innophos phosphates are used in an amazing array of market segments. We sell primarily into stable markets for use in our customers’ products that will be needed for a long time. We succeed through innovation, and by delivering functionality that is based on accurately identifying the critical challenges and developing the best possible solutions for our customers. We continue to research and create innovative products that will broaden the range of phosphate applications. Innophos constantly seeks out the “next big thing” when it comes to how phosphates can help our customers and, by extension, their customers. 5 Innophos at a glance Values Employees Innophos operates with a well-defined set of company values including: Safe, environmentally responsible operations, continuously improving Integrity in all dealings Create value; innovate Respect people; create a positive culture for teamwork Responsible, results-oriented performance Please review our Codes of Ethics at www.innophos.com, under Investor Relations – Corporate Governance – Documents & Charters. Innophos employs approximately 1,100 people in its facilities throughout the U.S., Mexico and Canada. We pride ourselves on our relationships with our employees. One important result is a high-performance, low-turnover experience in key production jobs. Performance Graph The graph above shows the value as of December 31, 2006 of $100 investment in our common stock as if made on November 2, 2006 (with dividends reinvested), as compared with similar investments based on (i) the value of the S&P Smallcap 600 index as if made on October 31, 2006 (with dividends reinvested) and (ii) the value of the Russell 2000 index as if made on October 31, 2006 (with dividends reinvested). The stock performance shown above is not necessarily indicative of future performance. Main Product Lines Specialty Salts and Specialty Acids Purified Phosphoric Acid STPP and Other Products 6 $140$120$100$80Innophos Holdings, Inc.Russell2000S&PSmallcap 60011/2/0611/0612/06 Infrastructure investments Since 2000, we have invested more than $100 million to reconfigure and upgrade our manufacturing facilities. The goal: to achieve the optimal footprint for sourcing raw materials and minimizing inbound and outbound freight costs. In addition, we successfully converted all of our phosphoric acid production to a much more efficient purification process, enabling us to develop a low-cost structure, efficient asset base and industry-leading value-added applications. Key Competitive Strengths Leading market segment positions in specialty products Stable end-market “demand” growth Low-cost structure Experienced and highly-motivated management team and employees with a focus on continuous improvement Business Strategy Strengthen our low-cost position Reduce financial leverage Expand our high-value product offerings Innophos prides itself on a focused, collaborative, customer-driven approach to developing new products, applications and processes. Corporate Locations Cranbury, NJ Mexico City, Mexico Mississauga, Ontario Manufacturing Facilities Chicago Heights, Ill. Chicago Waterway, Ill. Coatzacoalcos, Mexico Geismar, La. Mission Hills, Mexico Nashville, Tenn. Port Maitland, Ontario Distribution Facility Chicago Heights, Ill. Innophos Holdings, Inc. 259 Prospect Plains Road P.O. Box 8000 Cranbury, NJ 08512-8000 USA Tel: (609) 495-2495 Research & Development Center Cranbury, NJ Investor Relations: (609) 366-1299 Email: investor.relations@innophos.com 7 Executive officers and other key employees 8 Years in Industry Randy Gress Chairman, Chief Executive Officer, President & Director Chuck Brodheim Corporate Controller Louis Calvarin, Ph.D. VP Operations William Farran VP & General Counsel & Corporate Secretary Mark Feuerbach – VP Treasury, Financial Planning & Analysis John Godber, Ph.D. VP Research & Development Joseph Golowski VP Sales and Distribution José Ramón González de Salceda General Director, Innophos Mexicana S.A. de C.V. Wilma Harris VP Human Resources Richard Heyse VP and Chief Financial Officer Mark Thurston VP Specialties Alfredo Celis Toussaint Finance Director, Innophos Mexicana S.A. de C.V. Tim Treinen VP Performance Chemicals 23 18 20 19 19 19 21 35 31 7 25 3 20 At Innophos, experience matters. Our leadership team has on average more than 20 years of experience in the specialty chemicals business. We believe that this deep experience level is a competitive advantage. Transition to majority independent Board of Directors: Innophos is required by NASDAQ listing requirements and applicable law to have a majority of its Directors be independent on or before the end of the first year of its Initial Public Offering, or by November 2, 2007. In addition, by that time Innophos’ three committees – Audit, Compensation, and Nominating & Governance Committees – must be 100% independent. Board of Directors Randolph Gress, Chairman – CEO and President of Innophos. Gary Cappeline (Independent Director), Chairman of the Audit Committee – Operating Partner, AEA Investors, Inc. Mr. Cappeline also serves on the Board of Directors of Unifrax Corporation. Edward Conard, a Managing Director at Bain Capital. Mr. Conard also serves on the Boards of Directors of Broder Bros., Co., Sensata Technologies B.V., Unisource Worldwide, Inc., and Waters Corporation. Blair Hendrix, Chairman of the Compensation Committee – Operating Partner, Bain Capital. Mr. Hendrix also serves on the Boards of Directors of Keystone Automotive Operations, Inc., and SMTC Corporation. Linda Myrick (Independent Director), Chairman of the Nominating & Governance Committee – Vice President and General Manager, Scott Medical Products, a division of Scott Specialty Gases (SSG), Inc. Stephen Zide – a Managing Director at Bain Capital. Mr. Zide also serves on the Boards of Directors of Broder Bros., Co., Keystone Automotive Operations, Inc., and Sensata Technologies B.V. Corporate Headquarters Innophos Holdings, Inc. 259 Prospect Plains Road P.O. Box 8000 Cranbury, New Jersey 08512-8000 USA Tel: (609) 495-2495 Fax: (609) 860-0138 Investor Relations: (609) 366-1299 Email: investor.relations@innophos.com For more information, please visit our website: innophos.com