Ashland Inc. · NYSE:ASH
Ashland — Investor Presentation (September 2022)
33 slides from Ashland's investor presentation, Sep 14, 2022
Slide 1: Corporate presentation
responsibly solving for a better world September 14, 2022 investor.ashland.com corporate presentation Exhibit 99.1
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 corporate overview financial performance closing comments Q&A
Slide 4: Corporate overview
corporate overview
Slide 5: Ashland at a glance
Ashland1 sales $2.4 billion adjusted EBITDA $592 million adj. EBITDA margin 25.2 % size and critical mass to succeed strong financials diversification of three segments geographically well positioned 1 All figures as of the last twelve months ended June 30, 2022. All figures are presented on an adju
Slide 6: Additives and specialty ingredients company focused on consumer-driven end markets
>$2 Bn additives and specialty ingredients company focused on consumer-driven end markets high sustainability non- nature-derived consumer market-focused industrial additives and ingredients intermediates unique specialty profile high sustainability (natural, nature-derived, inherently biodegradable
Slide 7: Far reaching global footprint
employees by region — NA 53% EMEA 21% AP 16% LATAM 10% 3,800 employees far reaching global footprint
Slide 8: Priorities and strategy
priorities rebalanced our innovation portfolio consumer-market focus intensifying ESG initiatives geographic expansion bolt-on M&A Pharma Personal Care Coatings profitable growth prioritize organic growth CAPEX improved working capital efficiency strategically aligned M&A efficient balance sheet con
Slide 9: Megatrends and growth
megatrends and growth grow leadership position in oral solid dosage (OSD) expand injectables & biomed consumables leverage portfolio in nutrition drive geographic growth of our rheology franchise expand global architectural coatings franchise beyond rheology drive margin enhancement in other busines
Slide 10: Innovation is core to driving value
innovation is core to driving value record number of new product introductions 100% of FY22 launches focused on growth 89% of the launches FY22 year-to-date are highly sustainable disciplined innovation process (project and portfolio management) business unit ownership of strategy and innovation pri
Slide 11: ESG is embedded in our strategy
ESG is embedded in our strategy our purpose- to responsibly solve for a better world governance management and board ESG literacy social global STEM and education focus; inclusion and diversity environment core driver of innovations portfolio i&d Science Based Targets (SBTi)
Slide 12: Unique portfolio with resilient growth drivers
unique portfolio with resilient growth drivers resilient end markets with demonstrated demand stability (even in recessions) incremental profitable growth opportunities (independent of recessions) favorable megatrends Innovation ESG focus geographic diversity bolt-on M&A strategy lower exposure to p
Slide 13: Long term growth objectives
long term growth objectives compelling opportunity for growth, margin expansion and cash generation +5 – 6% market growth 2-3% objective: +200-400bps above market organic sales growth +100 bps per year EBITDA margin expansion 1 bolt-on per year objective: sales $50-$100MM EBITDA >30% bolt-on acquisi
Slide 14: Value potential
value potential while future expectations of Ashland’s growth and profitability are in-line with peers a substantial valuation discount remains (1) company a company d company c company b Ashland undervalued compared to peer group sales growth EBITDA growth EBITDA margin FCF generation financial met
Slide 15: Creating value for all stakeholders
creating value for all stake holders sales of > $3.2 billion EBITDA of ~$900 million EBITDA margins >30% cumulative free cash flow of $2.1 – $2.6 billion by fiscal year 2026….. over the next 5 years, we expect to invest ~$2.0 – $2.5 billion in bolt-on acquisitions and return ~$1.5 billion to shareho
Slide 16: Financial performance
financial performance
Slide 17: Strong, resilient performance
strong, resilient performance resilient sales, profit and margins exceeding pre-pandemic levels strong cost recovery in a high inflation environment innovation record number of new product introductions growing significantly in a world of accelerating change profitable agile flexible adaptive growth
Slide 18: Outstanding Q3 performance
outstanding Q3 performance1 sales adjusted EBITDA adjusted EBITDA % adjusted EPS2 broad-based sales growth +35 % $174 MM strong price realization and mix improvement +320 bps 27.0 % leadership position in high-value end markets +93 % $1.89 strong returns to shareholders Comparisons versus prior year
Slide 19: Outlook
outlook fiscal-year 2022 guidance confirmed; tracking to high-end of sales and EBITDA ranges agile, disciplined, focused on what we can control risks entering fiscal year 2023 impact of Russia / Ukraine war energy cost and availability in Europe rising global energy costs general cost inflation stre
Slide 20: Closing comments
ef Ashland ‘always solving
Slide 21: Focused additives and specialty ingredients company
focused additives and specialty ingredients company Ashland leadership positions in high-quality markets and with exciting profitable growth opportunities strong technology, commercial and operations capabilities global infrastructure compelling growth platforms with scale and sustainable competitiv
Slide 22: Q&A
Q&A
Slide 23: Appendix
appendix
Slide 24: Reconciliation of Non-GAAP Data for 12 Months Ended June 30, 2022
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 12 Months Ended June 30, 2022 1 Quarterly totals may not add to annual amounts due to rounding. Calculation of adjusted EBITDA for each period presented have been reconciled within certain financial filing
Slide 25: Segment Components of Key Items, 3 Months Ended June 30, 2022
Ashland Global Holdings Inc. and Consolidated Subsidiaries Segment Components of Key Items for Applicable Income Statement Captions for 3 Months Ended June 30, 2022 ($ millions)
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)
Slide 27: 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 the 3 and 9 Months Ended June 30, 2022 ($ millions)
Slide 28: Adjusted EBITDA for 3 Months Ended June 30, 2022
Ashland Global Holdings Inc. Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended June 30, 2022 ($ millions)
Slide 29: Adjusted EBITDA for 3 Months Ended June 30, 2022
Ashland Global Holdings Inc. Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended June 30, 2022 ($ millions)
Slide 30: Specialties Additives and Intermediates Adjusted EBITDA
Specialties Additives and Intermediates Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended June 30, 2022 ($ millions)
Slide 31: Adjusted Income from Continuing Operations
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Adjusted Income from Continuing Operations for the 3 and 9 Months Ended June 30, 2022 and 2021 ($ millions)
Slide 32: 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 the 3 and 9 Months Ended June 30, 2022 and 2021
Slide 33: Ashland - always solving
oT <i Ashland always solving