Company: NGVT
Filing Date: 2025-02-25
Form Type: DEFA14A
Source: 0001140361-25-005894
Chunk: 1

Company: Ingevity Corp
Filing Date: 2025-02-25
Form: DEFA14A
Chunk 1
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 Performance Materials.In 2024, we delivered record performance for our Performance Materials business for both sales and EBITDA, with margins surpassing 50%, driven by                                         
 new pricing and operational efficiency initiatives. We expect continued momentum in this business as we see ICE vehicles continue to become more fuel efficient, as well as consumer preferences trending toward hybrids. We are also making 
 progress in developing new markets for our carbon technologies in silicon anode batteries through our investment in Nexeon.                                                                                                                  |

| • | Transforming our Performance Chemicals segment.We have made significant progress proactively managing our Performance Chemicals business, exiting lower margin, cyclical end markets, reducing our                                              
 physical footprint to optimize costs and diversifying our raw material streams. In addition, we have addressed uneconomic long-term supply contracts, enhancing our ability to better manage the cost and timing of key raw material purchases. |

| • | Continuing to enhance our Board with fresh, qualified perspectives.In June 2024, as part of our ongoing board refreshment process, we began a search for a new director with the assistance of an                                      
 independent search firm. This search culminated in the appointment of J. Kevin Willis, Senior Vice President & Chief Financial Officer of Ashland Inc., to our Board in December 2024. Mr. Willis played an integral role in Ashland’s 
 successful separation from Valvoline and the reorganization of Ashland’s European operations. With Mr. Willis’s appointment, Ingevity has now added three new independent directors over the last three years.                         |

Despite a challenging market backdrop, these initiatives are already delivering results. In addition to our record results in Performance Materials, we realized $84 million in savings as part of our Performance Chemicals repositioning actions in 2024 – materially above our target of $65-$75 million – and expect to realize approximately $10-$25 million in 2025. As a result, in 2024, our second half EBITDA margins increased to approximately 28% and we delivered free cash flow that significantly exceeded our prior guidance. We have used that improved free cash flow to reduce debt and are targeting a net leverage ratio of below 2.8x by year-end 2025. We expect to continue our strong trajectory in 2025, targeting $400 to $415 million in EBITDA. It is important to emphasize that in addition to the meaningful actions already underway, the Company is continuing to evaluate additional opportunities to further reduce costs, as well as reviewing