Ashland Inc. · NYSE:ASH
Ashland — Ashland Global Holdings — Q3 2017 Earnings Presentation
28 slides from Ashland's earnings presentation, Aug 1, 2017
Slide 1: Third-Quarter Fiscal 2017 Earnings
Third-Quarter Fiscal 2017 Earnings August 1, 2017 / 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: Fiscal Third Quarter 2017 Highlights
Fiscal Third Quarter 2017Highlights1 Reported GAAP loss from continuing operations of $0.26 per diluted shareAdjusted earnings of $0.83 vs. $0.78 per diluted share in prior yearTotal sales growth of 10 percent to $870 millionClosed on the acquisition of Pharmachem Laboratories, Inc.Completed the fin
Slide 4: Fiscal Third Quarter – Continuing Operations Key Items Affecting Income
Fiscal Third Quarter – Continuing OperationsKey Items Affecting Income Excluding intangible amortization, adjusted EPS would have been 23 cents higher, or $1.06 per diluted share 4
Slide 5: Ashland Global Holdings Inc. Adjusted Results Summary
Ashland Global Holdings Inc.Adjusted Results Summary1 Ashland‘s earnings releases dated August 1, 2017, and April 25, 2017, available on Ashland's website at http://investor.ashland.com, reconcile adjusted amounts to amounts reported under GAAP. The three months ended June 30, 2016 includes $17 mill
Slide 6: Specialty Ingredients Adjusted Results Summary
Specialty IngredientsAdjusted Results Summary1 Sales increased $39 million, or 7 percent, to $591 million in the third quarterAdjusted EBITDA of $131 million increased 2 percent over the prior year Ashland‘s earnings releases dated August 1, 2017, and April 25, 2017, available on Ashland's website a
Slide 7: Composites Adjusted Results Summary
CompositesAdjusted Results Summary1 Sales of $209 million represents year-over-year growth of 20 percentAdjusted EBITDA of $27 million increased 17 percent over the prior year Ashland‘s earnings releases dated August 1, 2017, and April 25, 2017, available on Ashland's website at http://investor.ashl
Slide 8: Intermediates & Solvents Adjusted Results Summary
Intermediates & SolventsAdjusted Results Summary1 Sales of $70 million represents year-over-year growth of 9 percentAdjusted EBITDA of $10 million increased 43 percent over the prior year Ashland‘s earnings releases dated August 1, 2017, and April 25, 2017, available on Ashland's website at http://i
Slide 9: Fiscal Third Quarter 2017 Corporate Items
Fiscal Third Quarter 2017Corporate Items Adjusted corporate unallocated and other operating expense of $7 millionFiscal fourth quarter expectation of $10-$15 million expenseNet interest expense of $31 millionFiscal fourth quarter expectation of $30-$35 million expenseEffective tax rate of 11 percent
Slide 10: Financial targets to create shareholder value
Ashland Investor Day, May 2017Financial targets to create shareholder value 10 Note: Adjusted EPS growth, Adjusted EBITDA and Free Cash Flow are forward looking non-GAAP financial measures. See Slide 26 for an explanation for why reconciliations are not available to the most directly comparable forw
Slide 11: Appendix A: Bridges
Appendix A: Bridges _ <f'Ashlana
Slide 12: Ashland Q3 FY 2016 vs. Q3 FY 2017 Sales and Adjusted EBITDA Bridges
Ashland Q3 FY 2016 vs. Q3 FY 2017Sales and Adjusted EBITDA Bridges 2% Q3 2016 Volume / Mix 790 870 ($ millions)Preliminary Sales increased $80 million, or 10 percent, compared to the prior-year quarterAdjusted EBITDA of $161 million compared to $167 million in the prior-year quarterPrior-year adjust
Slide 13: Specialty Ingredients Sales and Adjusted EBITDA Bridges
Specialty IngredientsSales and Adjusted EBITDA Bridges 1% Q3 2016 Volume / Mix 552 591 ($ millions)Preliminary Sales increased $39 million, or 7 percent, to $591 million in the third quarterSales growth achieved through positive volume/mix, pricing and acquisitionsAdjusted EBITDA of $131 million inc
Slide 14: Composites Sales and Adjusted EBITDA Bridges
CompositesSales and Adjusted EBITDA Bridges 7% Q3 2016 Volume / Mix 174 209 ($ millions)Preliminary Sales increased $35 million, or 20 percent, to $209 million in the third quarterSales growth achieved through positive volume/mix, pricing and acquisitionsAdjusted EBITDA of $27 million increased 17 p
Slide 15: Intermediates & Solvents Sales and Adjusted EBITDA Bridges
Intermediates & SolventsSales and Adjusted EBITDA Bridges 5% Q3 2016 Volume / Mix 64 70 ($ millions)Preliminary Sales increased $6 million, or 9 percent, to $70 million in the third quarterSales growth achieved through positive volume/mix and improved pricingAdjusted EBITDA of $10 million increased
Slide 16: Appendix B: Volume Trends and Liquidity and Net Debt
Appendix B: Volume Trends and Liquidity and Net Debt
Slide 17: Normalized Volume Trends
Period Ended 1 Excludes volumes associated with divestitures of biocides and exited redispersible powders (RDP) product line for all periods. Includes volumes associated with Pharmachem. Rolling Four Quarters Normalized Volume Trends1 17
Slide 18: Liquidity and Net Debt
Liquidity and Net Debt ($ in millions) 18
Slide 19: Scheduled Debt Payments
Scheduled Debt Payments ($ in millions) 19
Slide 20: Appendix C: Business Profiles
Appendix C: Business Profiles 12 Months Ended June 30, 2017
Slide 21: Corporate Profile
Corporate Profile By business unit By geography 1 For 12 months ended June 30, 2017.2 Ashland includes only U.S. and Canada in its North America designation. North America240% Asia Pacific19% LatinAmerica/Other - 9% Europe 32% SpecialtyIngredients69% Intermediates and Solvents8% Composites23% Sales1
Slide 22: Corporate Profile
Corporate Profile For 12 months ended June 30, 2017. See Appendix D for reconciliation to amounts reported under GAAP. NYSE Ticker Symbol: ASH Total Employees: ~7,000 Outside North America ~50% Number of Countries in Which Ashland Has Sales: More than 100 SpecialtyIngredients83% Intermediates and So
Slide 23: Specialty Ingredients Sales by Market
Specialty Ingredients Salesby Market2 For 12 Months Ended June 30, 2017Sales: $2.1 billionAdjusted EBITDA: $479 million1Adjusted EBITDA Margin: 22.3%1 Salesby Product Cellulosics 37% PVP19% Adhesives 16% North America 39% AsiaPacific 20% Europe 31% Latin America/Other – 10% Actives – 6% Vinyl Ethers
Slide 24: Composites Sales by Geography
Composites Salesby Geography For 12 Months Ended June 30, 2017Sales: $722 millionAdjusted EBITDA: $80 million1Adjusted EBITDA Margin: 11.1%1 Salesby Product UPR/VER383% Gel coats and other17% Construction: Residential19% Marine 23% Construction:Industrial40% Salesby Market North America48% Asia Paci
Slide 25: Intermediates and Solvents Sales by Geography
Intermediates and Solvents Salesby Geography For 12 Months Ended June 30, 2017Sales: $263 millionAdjusted EBITDA: $18 million1Adjusted EBITDA Margin: 6.8%1 Salesby Product Butanediol39% Derivatives61% GeneralIndustrial 28% Plastics/Polymers32% Salesby Application North America 22% Asia Pacific 17% E
Slide 26: Appendix D: Non-GAAP Reconciliation
Appendix D: 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 27: Reconciliation of Non-GAAP Data for 12 Months Ended June 30, 2017
Ashland Global Holdings Inc. and Consolidated SubsidiariesReconciliation of Non-GAAP Data for 12 Months Ended June 30, 2017 North America2__% Asia Pacific__% LatinAmerica/Other - _% Europe __% AshlandSpecialtyIngredients__% AshlandPerformanceMaterials__% Valvoline__% 1 Quarterly totals may not sum t
Slide 28: 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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