Slide 1: Earnings Conference Call Third-Quarter Fiscal 2021
Earnings Conference Call Third-Quarter Fiscal 2021 July 28, 2021 – 9:00am Eastern Time / efficacy usability allure integrity profitability
Slide 2: Forward-Looking Statements
Forward-Looking Statements This 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
Slide 3: Agenda
agenda o Q3 performance summary o Q3 financial results o priorities and outlook o closing comments o Q&A 3
Slide 4: Q3 performance summary
Q3 performance summary <f Ashland
Slide 5: Q3 tailwinds and headwinds
Ashland Global Holdings Inc. Q3 tailwinds and headwinds tailwinds headwinds o cost savings from self-help actions o global constraints on logistics and shipping impacting cost and timing of o strong recovery of industrial end- order invoicing market demand o raw-material availability impacting o Imp
Slide 6: Commentary on Q3 performance
Ashland Global Holdings Inc. commentary on Q3 performance o sales increased 11% compared to the prior year; currency favorably impacted sales by 3% Q3 highlights1 o year-over-year adjusted EBITDA increase of 4% to $148 million sales of $637 million (+11%) o no major surprises with underlying market
Slide 7: Q3 financial results
Q3 financial results <f Ashland
Slide 8: Fiscal third-quarter adjusted results
Ashland Global Holdings Inc. fiscal-third quarter adjusted results1 ($US in millions, except percentages) Q3 FY21 Q3 FY20 change sales $637 $574 +11 % gross profit margin 31.4 % 34.1 % (270) bps SG&A / R&D costs / intangible amortization $118 $115 +3 % operating income $83 $81 +2 % EBITDA $148 $143
Slide 9: Consumer Specialties adjusted results summary
Consumer Specialties adjusted results summary1 ($US in millions, except percentages) Q3 FY21 Q3 FY20 change sales $340 $344 (1) % gross profit $121 $122 (1) % gross profit margin 35.6 % 35.5 % +10 bps operating Income $55 $56 (2) % EBITDA $92 $90 +2 % EBITDA margin 27.1 % 26.2 % +90 bps o strong nut
Slide 10: Industrial Specialties adjusted results summary
Industrial Specialties adjusted results summary1 ($US in millions, except percentages) Q3 FY21 Q3 FY20 change sales $263 $205 +28 % gross profit $65 $64 +2 % gross profit margin 24.7 % 31.2 % (650) bps operating Income $30 $30 - EBITDA $55 $54 +2 % EBITDA margin 20.9 % 26.3 % (540) bps o strong indu
Slide 11: Intermediates & Solvents adjusted results summary
Intermediates & Solvents (I&S) adjusted results summary1 ($US in millions, except percentages) Q3 FY21 Q3 FY20 change sales $49 $37 +32 % gross profit $14 $10 +40 % gross profit margin 28.6 % 27.0 % +160 bps operating Income $11 $7 +57 % EBITDA $15 $11 +36 % EBITDA margin 30.6 % 29.7 % +90 bps o sal
Slide 12: Free cash flow
Ashland Global Holdings Inc. free cash flow o generated free cash flow of $210 million compared to $112 million in prior-year Q3 o year-over-year increase of $98 million, inclusive of $90 million from the new US A/R sales program o improvement driven by lower capital expenditures, higher earnings an
Slide 13: Priorities and outlook
priorities and outlook
Slide 14: Market demand outlook
Ashland Global Holdings Inc. market demand outlook o continued strong pharma and nutraceutical demand o demand recovery in Personal Care end markets dependent on pace of global reopening (e.g. consumer behavior); expect weak hand-sanitizer demand to persist o stronger industrial demand continues; en
Slide 15: Outlook
Ashland Global Holdings Inc. outlook maintaining full-year guidance FY2021 sales forward-looking insights $2.4 – $2.5 billion o strong demand continues o stable life sciences demand growth o delayed demand recovery in several personal care end markets FY2021 adj. EBITDA o continued recovery in indus
Slide 16: Our priorities
Ashland Global Holdings Inc. our priorities margin expansion business resilience o 2021 COGS/SARD o business unit focus reduction o S&OP discipline (increase o innovation and BU operating visibility) mix improvement managing supply- o organizational ownership chain challenges / accountability o exit
Slide 17: Closing comments
closing comments “Cf Aghland ving
Slide 18: Premier specialty materials company
Ashland Global Holdings Inc. premier specialty materials company o focused on high-quality markets and businesses with exciting profitable growth opportunities o franchise businesses have leadership positions • #1 or #2 • strong teams with deep industry expertise • excellent customer relationships a
Slide 19: Thank you and Q&A
thank you and Q&A oe = cf Ashland
Slide 20: Appendix A: adjusted results summary and balance sheet
appendix A: adjusted results summary and balance sheet
Slide 21: Adjusted results summary
Ashland Global Holdings Inc. adjusted results summary1 ($US in millions, except percentages and Q3 FY21 Q3 FY20 change per share data) sales $637 $574 +11 % gross profit $200 $196 +2 % gross profit margin 31.4 % 34.1 % (270) bps SG&A / R&D costs / intangible amort. $118 $115 +3 % Photo operating inc
Slide 22: Q3 business unit consolidation
Ashland Global Holdings Inc. Q3 business unit consolidation1 ($US in millions, except Consumer Industrial interco. unallocated I&S Ashland percentages) Specialties Specialties eliminations and other sales $340 $263 $49 ($15) - $637 gross profit $121 $65 $14 - - $200 gross profit margin 35.6 % 24.7 %
Slide 23: Liquidity and net debt
Ashland Global Holdings Inc. liquidity and net debt Moody’s 6/30/21 ($US in millions) expiration interest rate S&P rating rating balance cash $262 revolver and A/R facilities availability 614 cash, A/R and revolver availability1 $876 US A/R sales program1 $27 Photo debt 2.00% notes (EUR) Jan. 2028 2
Slide 24: Appendix B: non-GAAP reconciliation
appendix B: non-GAAP reconciliation1 1 Although Ashland provides forward looking guidance for adjusted EBITDA in this presentation, Ashland is not reaffirming or providing forward- looking guidance for U.S. GAAP reported financial measures or a reconciliation of forward-looking non-GAAP financial me
Slide 25: Reconciliation of Non-GAAP Data
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 12 Months Ended June 30, 2021 ($ millions, except percentages) Sales1 Q3 21 Q2 21 Q1 21 Q4 20 Total Q3 20 Life Sciences $ 193 $ 185 $ 170 $ 180 $ 728 $ 189 Personal Care & Household 147 137 125 164 573 155
Slide 26: Segment Components of Key Items, 3 Months Ended June 30, 2021
Ashland Global Holdings Inc. and Consolidated Subsidiaries Segment Components of Key Items for Applicable Income Statement Captions for 3 Months Ended June 30, 2021 ($ millions) Three Months Ended June 30, 2021 Personal Care Life and Consumer Spec ialty Performanc e Industrial Intermediates Unalloca
Slide 27: Segment Components of Key Items, 3 Months Ended June 30, 2020
Ashland Global Holdings Inc. and Consolidated Subsidiaries Segment Components of Key Items for Applicable Income Statement Captions for 3 Months Ended June 30, 2020 ($ millions) Three Months Ended June 30, 2020 Personal Care Life and Consumer Spec ialty Performanc e Industrial Intermediates Unalloca
Slide 28: Reconciliation of Non-GAAP Data – Free Cash Flow and Adjusted Operating Income
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Free Cash Flow and Adjusted Operating Income for 3 Months Ended June 30, 2021 and 2020 ($ millions) Thre e mo nths e nd e d Nine mo nths e nd e d June 30 June 30 Fre e c a sh flows (a ) 2021 2020 2021 2020 T
Slide 29: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Ashland Global Holdings Inc. Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended June 30, 2021 and 2020 ($ millions) Three mo nths end ed June 30 Ad justed EBITDA - Ashla nd Glo b a l Ho ld ing s Inc . 2021 2020 Net inc o me (lo ss) $ 80 $ 37 Inc o me ta x exp ense (b enefit) (24) 1
Slide 30: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Consumer Specialties Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended June 30, 2021 and 2020 ($ millions) Three mo nths June 30 2021 2020 Life Sc ienc es Op era ting inc o me $ 37 $ 40 Ad d : Dep rec ia tio n a nd a mo rtiza tio n 16 15 A d justed EBITDA $ 53 $ 55 Ashland Perso n
Slide 31: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Industrial Specialties, Intermediates and Solvents Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended June 30, 2021 and 2020 Three mo nths end ed ($ millions) June 30 2021 2020 Sp ec ia lty Ad d itives Op era ting inc o me (lo ss) $ 15 $ 15 Ad d : Dep rec ia tio n a nd a mo rtiza t
Slide 32: Reconciliation of Non-GAAP Data – Adjusted Income from Continuing Operations
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Adjusted Income from Continuing Operations for 3 Months Ended June 30, 2021 and 2020 ($ millions) Three months end ed Nine months end ed June 30 June 30 2021 2020 2021 2020 Income (loss) from continuing oper
Slide 33: Reconciliation of Non-GAAP Data – Adjusted Diluted EPS
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Adjusted Diluted EPS from Continuing Operations for 3 Months Ended June 30, 2021and 2020 Three months end ed Nine months end ed ($ millions) June 30 June 30 2021 2020 2021 2020 Diluted EPS from continuing op
Slide 34: Registered trademark notice
® Registered trademark, Ashland or its subsidiaries, registered in various countries ™ Trademark, Ashland or its subsidiaries, registered in various countries