# To Our Shareholders

_Source: `DeepSeekOCR_Ardian_pruned_1k/basic-materials-specialty-chemicals/NYSE_NEU_2019/NYSE_NEU_2019.mmd` · pages 4-10_

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To Our Shareholders:

I am pleased to report that 2019 was a successful year for our company. The team again made significant strides on our operating performance and delivering on our long-range strategy.

Our Petroleum Additives business, managed by Afton Chemical Corporation, continued to realize the benefit of its "One Team, One Goal" strategy. We were successful in restoring operating margins back into the range we enjoyed before the raw material escalations we experienced over the last few years. The team also continued to maintain measured cost control and make internal progress on efficiencies across the enterprise. The investments made over the past five years in global supply infrastructure, including production facilities in Singapore and Mexico, continue to reap benefits relative to our operating performance. Our strategy remained steadfast in 2019 as we continued to focus on investments for the long-term future of our business.

Our "One Team, One Goal" philosophy also embodies the focus on our "Actively Caring" safety efforts across the organization. In 2019, we had a 40% improvement in our recordable injury rate and had zero serious injuries or process safety incidents. In addition, six of our operating sites achieved the "Vision of Zero" safety performance in 2019, with zero incidents across a full range of safety indicators.

We are proud that our company and people make the world a better place. Working with our customers and OEM partners, our products make a positive contribution to society through: reducing emissions, improving fuel economy, reducing the use of fossil fuels, and increasing the overall efficiency of modern-day transportation. We remained focused on research and development efforts in the Petroleum Additives business and making our solutions more impactful as "part of the solution." We are committed to the excellence that our products can provide through positive contributions to the world in which we live. This constant focus gives me great confidence in our abilities to serve our customers well into the future as our industry continues to have sound fundamentals.

Cash flow generation continues to be a priority and focus of the team. We have a stated strategy and continue to operate under our long-standing principles for capital deployment. In 2019 we had another year of strong cash flow, while maintaining a very modest leverage of 1.1X net debt/EBITDA. We returned \(82 million to our shareholders through dividends, funded capital expenditures of \)59 million and repaid $123 million of borrowings on our revolving credit facility.

Thanks to the good work of our 2,000+ team members, we enter 2020 well positioned for the future and look to continue managing the business for the long term as our marketplace evolves. Our business is performing well, and our balance sheet is strong. We appreciate the support of all our stakeholders, and so we say "Thank You" to our employees, customers and shareholders for all that you do, and I look forward to another great year ahead.

Sincerely,

Thomas E. Gottwald

Chairman and CEO

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