Slide 1: Earnings Conference Call First-Quarter Fiscal 2021
Earnings Conference Call First-Quarter Fiscal 2021 February 4, 2021 – 9:00am Eastern Time / efficacy usability allure integrity profitability
Slide 2: Forward-Looking Statements; Regulation G: Adjusted Results
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 Q1 performance summary o Q1 financial results o priorities and outlook o closing comments o thank you and Q&A 3
Slide 4: Q1 performance summary
Q1 performance summary
Slide 5: Commentary on Q1 Performance
Ashland Global Holdings Inc. Commentary on Q1 Performance o year-over-year sales growth of 4%; currency favorably Q1 Highlights1 impacted sales by 2% o year-over-year growth adjusted EBITDA growth of 41%; prior- Sales of $552 million (+4%) year shutdown in I&S represented 14% Adjusted EBITDA of $124
Slide 6: Q1 financial results
Q1 financial results
Slide 7: Fiscal-First Quarter Adjusted Results
Ashland Global Holdings Inc. Fiscal-First Quarter Adjusted Results1 ($US in millions, except percentages) Q1 FY21 Q1 FY20 Change Sales $552 $533 +4 % Gross profit margin 32.2 % 28.7 % +350 bps SG&A / R&D costs / Intangible amortization $121 $128 (5) % Operating Income $62 $24 +158 % EBITDA $124 $88
Slide 8: Consumer Specialties Adjusted Results Summary
Consumer Specialties Adjusted Results Summary1 ($US in millions, except percentages) Q1 FY21 Q1 FY20 Change Sales $296 $292 +1 % Gross profit $107 $103 +4 % Gross profit margin 36.1 % 35.3 % +80 bps Operating Income $44 $33 +33 % EBITDA $79 $67 +18 % EBITDA margin 26.7 % 22.9 % +380 bps o resilient
Slide 9: Industrial Specialties Adjusted Results Summary
Industrial Specialties Adjusted Results Summary1 ($US in millions, except percentages) Q1 FY21 Q1 FY20 Change Sales $231 $213 +8 % Gross profit $67 $59 +14 % Gross profit margin 29.0 % 27.7 % +130 bps Operating Income $31 $19 +63 % EBITDA $55 $43 +28 % EBITDA margin 23.8 % 20.2 % +360 bps o broad-ba
Slide 10: Intermediates & Solvents Adjusted Results Summary
Intermediates & Solvents (I&S) Adjusted Results Summary1 ($US in millions, except percentages) Q1 FY21 Q1 FY20 Change Sales $33 $28 +18 % Gross profit $4 ($10) NM Gross profit margin 12.1 % (35.6) % NM Operating Income $2 ($12) NM EBITDA $5 ($9) NM EBITDA margin 15.2 % (32.1) % NM o merchant volumes
Slide 11: Free Cash Flow
Ashland Global Holdings Inc. Free Cash Flow o generated free cash flow of $76 million compared to $63 million deficit in prior- year Q1 o year-over-year increase of $139 million o improvement driven by improved earnings and continuous working capital improvement o expect Adjusted EBITDA to free cash
Slide 12: Priorities and outlook
priorities and outlook
Slide 13: Our Priorities
Ashland Global Holdings Inc. Our Priorities margin expansion business resilience o 2021 COGS/SARD reduction o business unit focus o S&OP discipline (increase BU o innovation and mix operating visibility) improvement o organizational ownership / o exit lower-margin product accountability lines o alig
Slide 14: Acquisition Update
Ashland Global Holdings Inc. Acquisition Update o announced signing of definitive agreement to acquire Schülke & Mayr personal-care business for €262.5 million o broadens breadth of specialty additive solutions and expands our biotechnology and microbiology technical capabilities o business will be
Slide 15: FY2021 Outlook Drivers
Ashland Global Holdings Inc. FY2021 Outlook Drivers o continued mix improvement o acceleration of self-help actions o demand recovery continues in industrial end markets o favorable foreign-currency translation o benefits from incremental volume on absorption will be partially offset by the impact o
Slide 16: Outlook
Ashland Global Holdings Inc. Outlook not providing specific FY2021 guidance given macro uncertainty forward-looking insights FY2020 performance o assume current continued recovery in + sales growth global demand, 3 – 5% sales growth in fiscal 2021 (inclusive of favorable FX and exit of lower-margin
Slide 17: Closing comments
closing comments
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
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 Q1 FY21 Q1 FY20 Change per share data) Sales $552 $533 +4 % Gross profit $178 $153 +16 % Gross profit margin 32.2 % 28.7 % +350 bps SG&A / R&D costs / Intangible amort. $121 $128 (5) % Photo Operating inc
Slide 22: Q1 Business Unit Consolidation
Ashland Global Holdings Inc. Q1 Business Unit Consolidation ($US in millions, except Consumer Industrial Interco Unallocated I&S Ashland percentages) Specialties Specialties Eliminations and Other Sales $296 $231 $33 ($8) - $552 Gross profit $107 $67 $4 - - $178 Gross profit margin 36.1 % 29.0 % 12.
Slide 23: Liquidity and Net Debt
Ashland Global Holdings Inc. Liquidity and Net Debt Interest Moody’s 12/31/20 ($US in millions) Expiration S&P Rating Rate Rating Balance Cash $335 Revolver and A/R facility availability 694 Cash, A/R and revolver availability $1,029 Photo Debt 2.00% Notes (EUR) Jan. 2028 2.000% Ba1 BB+ $614 4.750%
Slide 24: Appendix B: Non-GAAP Reconciliation
Appendix B: Non-GAAP Reconciliation1 1 Although Ashland provides forward looking guidance for adjusted EBITDA in this presentation, Ashland is not reaffirming or providing forward-looking guidance for U.S. GAAP reported financial measures or a reconciliation of forward-looking non-GAAP financial mea
Slide 25: Reconciliation of Non-GAAP Data
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 12 Months Ended December 31, 2020 ($ millions, except percentages) Sales1 Q1 21 Q4 20 Q3 20 Q2 20 Total Q1 20 Life Sciences $ 170 $ 180 $ 189 $ 184 $ 723 $ 155 Personal Care & Household 126 164 155 159 604
Slide 26: Segment Components of Key Items for Income Statement Captions
Ashland Global Holdings Inc. and Consolidated Subsidiaries Segment Components of Key Items for Applicable Income Statement Captions for 3 Months Ended December 31, 2020 ($ millions) Three Months Ended December 31, 2020 Life Personal Consumer Specialty Performance Industrial Intermediates Unallocated
Slide 27: Segment Components of Key Items for Income Statement Captions
Ashland Global Holdings Inc. and Consolidated Subsidiaries Segment Components of Key Items for Applicable Income Statement Captions for 3 Months Ended December 31, 2019 ($ millions) Three Months Ended December 31, 2019 Life Personal Consumer Specialty Performance Industrial Intermediates Unallocated
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 December 31, 2020 and 2019 ($ millions) Three months ended December 31 Free cash flows 1 2020 2019 Total cash flows provided by operating activ
Slide 29: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Ashland Global Holdings Inc. Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended December 31, 2020 and 2019 ($ millions) Three months ended December 31 Adjusted EBITDA - Ashland Global Holdings Inc. 2020 2019 Net income $ 56 $ 32 Income tax expense (benefit) - (24) Net interest and
Slide 30: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Consumer Specialties Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended December 31,2020 and 2019 ($ millions) Three months ended December 31 Life Sciences 2020 2019 Operating income $ 29 $ 22 Add: Depreciation and amortization 16 15 Adjusted EBITDA $ 45 $ 37 Personal Care and Ashl
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 December 31, 2020 and 2019 ($ millions) Three months ended December 31 2020 2019 Specialty Additives Operating income $ 2 $ 9 Add: Depreciation and amortization 21 20 Operating key
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 December 31, 2020 and 2019 ($ millions) Three months ended December 31 2020 2019 Income from continuing operations (as reported) $ 61 $ 34 Key it
Slide 33: Reconciliation of Non-GAAP Data – Adjusted Diluted EPS from Continuing Operations
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Adjusted Diluted EPS from Continuing Operations for 3 Months Ended December 31, 2020 and 2019 ($ millions) Three months ended December 31 2020 2019 Diluted EPS from continuing operations (as reported) $ 0.99
Slide 34: ® Registered trademark, Ashland or its subsidiaries, registered in various countries ™ Trademark, Ashland
® Registered trademark, Ashland or its subsidiaries, registered in various countries ™ Trademark, Ashland or its subsidiaries, registered in various countries