# Dear Valued
Shareholders

_Source: `DeepSeekOCR_Ardian_pruned_1k/consumer-defensive-packaged-foods/NYSE_INGR_2019/NYSE_INGR_2019.mmd` · pages 3-9_

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Dear Valued
Shareholders

In 2019, we continued to make excellent progress executing our growth strategy, expanding our portfolio of on-trend specialty ingredients and differentiated capabilities to enhance our ability to co-create with customers to deliver consumer-preferred innovation. Our bold moves are enabling greater operational efficiency and agility within a more streamlined organization.

Ingredion's Driving Growth Roadmap guided our delivery of value creation for shareholders and customers. Strong consumer demand across our on-trend growth platforms—starch-based texturizers, clean and simple ingredients, plant-based proteins, sugar reduction and specialty sweeteners, and food systems—enabled us to deliver net sales growth for our specialty ingredient portfolio throughout the year.

SPECIALTY BUSINESS GROWTH

+$1.9B

YEAR-OVER-YEAR
INCREASE IN SPECIALTY SALES
(REACHING 30% OF
TOTAL SALES) IN 2019

## Moving Forward in a Changing Global Market

The global food industry is experiencing unprecedented change in consumer preferences and eating habits, new labeling requirements and customer channel shifts. These market pressures are felt throughout supply chains and are bringing both change and opportunity for ingredient suppliers. Our global footprint, deep customer relationships, and the relevance and breadth of our ingredient portfolio differentiate our company and position us extremely well to adapt and pursue new growth opportunities.

For the full year, global net sales were \(6.2 billion, slightly down compared to the prior year. Absent \)292 million of negative foreign exchange impacts, net sales were up 4 percent from the prior year. Reported and adjusted earnings per share \( ^{(1)} \)  were \(6.13 and \)6.65, respectively. We continued to invest in our future, building Ingredion's capabilities where global consumer demand is increasing, including plant-based proteins, sugar reduction and starch-based texturizers. We are pleased that our specialty portfolio grew to $1.9 billion or 30 percent of total net sales in 2019.

## Specialty Ingredients: Investing to Enhance Our Ability to Co-Create with Customers

By helping our customers respond to consumer trends, get to market faster and win in the highly competitive food and beverage industry, we are becoming a more valued partner. Our strategic investments make us more competitive and expand our higher-value specialty ingredient portfolio and capabilities.

• Our acquisition of Western Polymer expands our specialty potato starch manufacturing network and broadens our customer base, which is at the heart of our growth strategy in North America.

• Our investment with Verdient Foods further expands manufacturing and production capabilities and broadens our product portfolio in plant-based proteins, an area experiencing significant growth.

• We opened our first Allulose plant in Mexico, advancing our specialty ingredients strategy in sugar reduction—one of the most important trends shaping the food and beverage industry.

## 2030 SUSTAINABILITY PLAN

Sustainability is essential for the long-term growth and health of our business as we strive to make life better for our employees, customers and shareholders.

100%

IN 2019, WE SET AN AMBITIOUS GOAL TO SUSTAINABLY SOURCE 100% OF THE CORN, TAPIOCA, POTATO, PEA AND STEVIA CROPS IN OUR SUPPLY CHAIN BY 2025

2.7M

IN 2019, WE SUSTAINABLY SOURCED 2.7M METRIC TONS OF CROPS ACROSS OUR GLOBAL SUPPLY CHAIN
100%

SINCE 2017, WE HAVE SUSTAINABLY SOURCED ALL WAXY CORN IN EUROPE

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## "At Ingredion, we bring the potential of people, nature and technology together to make life better."

## Cost Smart: Delivering Value Through Cost Reduction and Transformation

Our team did an exceptional job generating new operational efficiencies by executing our Cost Smart initiative. Our efforts to effectively and strategically manage costs resulted in nearly $75 million in run-rate savings, surpassing our $30 million–$40 million Cost Smart savings target for 2019. We have broadened and accelerated our program to achieve a cumulative savings target of $150 million by 2021. Through Cost Smart, we are transforming the way we work and delivering sustainable cost reduction while simplifying our organization to enable growth and differentiation. With greater agility, we are strengthening our culture of innovation and customer focus as we strive to be an increasingly valued partner to our customers.

## Sustainability: Environmental, Social and Governance (ESG) Momentum

In 2019, we accelerated our focus on ESG issues to communicate how we are driving long-term value and our ability to support customer success both profitably and responsibly. We will celebrate Earth Day 2020 with the publication of our ninth annual sustainability report, where we will showcase how sustainability is integrated within our business and our operations to "make ALL LIFE better."

## Our People: Ingredion's Greatest Strength

Ingredion demonstrated strength and resiliency despite global macroeconomic challenges in 2019. This is a testament to the talent and dedication of our global employees. It was a tribute to our people that Ingredion was recognized as one of the World's Most Admired Companies by Fortune magazine for the 11th consecutive year. We are also proud to be included in Bloomberg's Gender-Equality Index for the third consecutive year and finally, Ingredion was named one of the World's Most Ethical Companies by Ethisphere for the seventh consecutive year.

Our success would not be possible without the hard work and contributions of our employees in 2019. I would also like to express my gratitude to our directors for their guidance and support. We strengthened our board with the addition of Stephan Tanda, who brings deep specialty food ingredient experience and a global perspective.

## A Bright Future for Ingredion

We have met the challenges of 2019 and are well positioned for the year ahead. As we look to the future, we expect to deliver on our growth strategy and improve operational and financial performance as a stronger organization for our shareholders, customers and employees. Our management team and board are strongly aligned in our commitment to create long-term shareholder value. I remain confident that we are executing our strategic plan to drive growth, and I look forward to building on our success.

Sincerely,

![](images/4_0.jpg)

James P. Zallie
President and CEO
April 8, 2020

 \( ^{①} \)  Adjusted earnings per share is a non-GAAP financial measure. See page 73 of the accompanying Annual Report in Form 10-K for a reconciliation of adjusted earnings per share to earnings per share calculated on a GAAP basis