Ashland Inc. · NYSE:ASH
Ashland — Ashland Global Holdings — Q1 FY2018 Earnings Presentation
24 slides from Ashland's earnings presentation, Jan 29, 2018
Slide 1: First-Quarter Fiscal 2018 Earnings
First-Quarter Fiscal 2018 Earnings January 29, 2018 / efficacy usability allure integrity profitability
Slide 2: Forward-Looking Statements
Forward-Looking StatementsThis presentation contains 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. Ashland has identified some of these forward-looking statements with words s
Slide 3: First Quarter Summary
First Quarter Summary <fashland always soh
Slide 4: Ashland Global Holdings Inc. Adjusted Results Summary
Ashland Global Holdings Inc.Adjusted Results Summary1 4 HighlightsSales up 20% including 9 ppts from acquisitions/divestitures and 3 ppts from currencyReported net loss of $4 million; loss from continuing operations of $7 million or $0.12 per diluted shareEBITDA increased to $136 millionEPS equaled
Slide 5: Specialty Ingredients Adjusted Results Summary
Specialty IngredientsAdjusted Results Summary1 HighlightsSales up 14% including 10 ppts from acquisitions/divestitures and 2 ppts from currencyGross profit up 13% including 8 ppts from acquisitions/divestitures and 3 ppts from currencyKey DriversYOY EBITDA Impact:$9 million from volume/mix gains fro
Slide 6: Specialty Ingredients Sales Trends by End Market
Specialty IngredientsSales Trends by End Market 6 End Market CommentaryBroad-based growth across end markets driven by targeted product mix enhancementsStrong growth in Personal Care biofunctional ingredientsNew capacity enables robust volumes in key Pharma cellulosic excipientsAdhesives sales flat
Slide 7: Composites Adjusted Results Summary
CompositesAdjusted Results Summary1 Ashland‘s earnings release dated January 29, 2018, available on Ashland's website at http://investor.ashland.com, reconciles adjusted amounts to amounts reported under GAAP. 7 HighlightsSales up 32% including 10 ppts from acquisitions and 4 ppts from currencyEBITD
Slide 8: Intermediates & Solvents Adjusted Results Summary
Intermediates & SolventsAdjusted Results Summary1 Ashland‘s earnings release dated January 29, 2018, available on Ashland's website at http://investor.ashland.com, reconciles adjusted amounts to amounts reported under GAAP. 8 HighlightsSales up 30%EBITDA increased to $16 millionEBITDA margin increas
Slide 9: Outlook Summary
Outlook Summary <fashland always soh
Slide 10: Impact of New Tax Law
Ashland Global Holdings Inc.Impact of New Tax Law HighlightsReset FY 2018 book effective tax rate (ETR) to a range of 16 – 20%FY 2018 Adjusted EPS outlook based on 18% rateCash tax rate (CTR) expected to be in the current range of 20 – 25%Cash cost of ~$160 million for mandatory repatriation; offset
Slide 11: Fiscal Year 2018 Outlook
Ashland Global Holdings Inc.Fiscal Year 2018 Outlook 11 Definition of free cash flow: operating cash flow less capital expenditures and other items Ashland has deemed non-operational (if applicable). HighlightsReaffirm all operating segment Adjusted EBITDA outlooksReaffirm FY free cash flow outlook1
Slide 12: Second-Quarter Fiscal 2018 Outlook
HighlightsExpect Q2 adjusted EPS in the range of $0.80 - $0.90 vs. $0.70 prior yearOutlook based on effective tax rate of 18% vs. 1% prior yearKey DriversStrong YOY organic sales and EBITDA growth in Specialty Ingredients, Composites and Intermediates & Solvents (I&S)Continued contribution from rece
Slide 13: Appendix A: Key Items and Balance Sheet
Appendix A: Key Items and Balance Sheet
Slide 14: Key Items Affecting Income
Fiscal First Quarter – Continuing OperationsKey Items Affecting Income 14
Slide 15: Liquidity and Net Debt
Liquidity and Net Debt ($ in millions) 15
Slide 16: Appendix B: Business Profiles
Appendix B: Business Profiles 12 Months Ended December 31, 2017
Slide 17: Corporate Profile
Corporate Profile By business unit By geography 1 For 12 months ended December 31, 2017.2 Ashland includes only U.S. and Canada in its North America designation. North America240% Asia Pacific18% LatinAmerica/Other - 9% Europe 33% SpecialtyIngredients67% Intermediates and Solvents8% Composites25% Sa
Slide 18: Corporate Profile
Corporate Profile For 12 months ended December 31, 2017. See Appendix C for reconciliation to amounts reported under GAAP. NYSE Ticker Symbol: ASH Total Employees: ~6,500 Outside North America ~50% Number of Countries in Which Ashland Has Sales: More than 100 SpecialtyIngredients79% Intermediates an
Slide 19: Specialty Ingredients Sales by Market
Specialty Ingredients Salesby Market2 For 12 Months Ended December 31, 2017Sales: $2.3 billionAdjusted EBITDA: $504 million1Adjusted EBITDA Margin: 22.1%1 Salesby Product Cellulosics 35% PVP17% Adhesives 15% North America 40% AsiaPacific 19% Europe 31% Latin America/Other – 10% Actives – 6% Vinyl Et
Slide 20: Composites Sales by Geography
Composites Salesby Geography For 12 Months Ended December 31, 2017Sales: $832 millionAdjusted EBITDA: $91 million1Adjusted EBITDA Margin: 10.9%1 Salesby Product UPR/VER284% Gel coats and other16% Construction: Residential19% Marine 22% Construction:Industrial40% Salesby Market North America46% Asia
Slide 21: Intermediates and Solvents Sales by Geography
Intermediates and Solvents Salesby Geography For 12 Months Ended December 31, 2017Sales: $283 millionAdjusted EBITDA: $41 million1Adjusted EBITDA Margin: 14.5%1 Salesby Product Butanediol39% Derivatives61% GeneralIndustrial 27% Plastics/Polymers32% Salesby Application North America 22% Asia Pacific
Slide 22: Appendix C: Non-GAAP Reconciliation
Appendix C: Non-GAAP Reconciliation1 Although Ashland provides forward looking guidance for adjusted EBITDA in this presentation, Ashland is not reaffirming or providing forward-looking guidance for U.S. GAAP reported financial measures or a reconciliation of forward-looking non-GAAP financial measu
Slide 23: Reconciliation of Non-GAAP Data for 12 Months Ended December 31, 2017
Ashland Global Holdings Inc. and Consolidated SubsidiariesReconciliation of Non-GAAP Data for 12 Months Ended December 31, 2017 North America2__% Asia Pacific__% LatinAmerica/Other - _% Europe __% AshlandSpecialtyIngredients__% AshlandPerformanceMaterials__% Valvoline__% 1 Quarterly totals may not s
Slide 24: Trademark notices
® Registered trademark, Ashland or its subsidiaries, registered in various countries™ Trademark, Ashland or its subsidiaries, registered in various countries
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