Slide 1: Second-Quarter Fiscal 2015 Earnings
Second-Quarter Fiscal 2015 Earnings April 29, 2015 4 ’
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 word
Slide 3: Fiscal Second Quarter 2015 Highlights
Fiscal Second Quarter 2015 Highlights‘ Factors affecting year-over-year EBITDA ues males» —Ad]. EBITDA margin ome 31.600 30% wT 10 (18) oy 31.450 20% 31.300 Ti 10% 1.1801 om : ‘22014 ize 022018 ‘o22014" var" Wegn Sosa” FX" Omer "022018 Mic a EPS $148 $2.03 + Reported earnings per share (EPS) from co
Slide 4: Fiscal Second Quarter — Continuing Operations: Key Items Affecting Income
Fiscal Second Quarter — Continuing Operations Key Items Affecting Income 6 in millions, except EPS) Operating Income Preliminary Ashland Ashland Unallocated Specialty Performance Earnings Ingredients Materials Valvoline Pretax Aftertax per Share Restructuring (18) (im (025) Impairment of equity inve
Slide 5: Adjusted Results Summary
Adjusted Results Summary’ Q x » (6 in millions) Fiscal Second Quarter. _| Three months ended Preliminary Three months ended March 31, Dec. 34, 2015 2014 Change | 2014 Change Sales $1,350 $1,545 (13) % |) $1,391 @)% Gross profitas a percent of sales 334% 281% 500 bp) 294 % 370 bp Selling, general and
Slide 6: Ashland Specialty Ingredients
Ashland Specialty Ingredients Adjusted Results Summary’ Fiscal Second Quarter Three months ended oy. Three months ended March 31, Dec. 31, 2015 2014 Change 2014 Change Metric tons sold (in thousands) - Actives basis 82.7 874 65) % 79.9 4% Sales $ 583 $ 629 7) % || $ 561 4% Gross profit as a percent
Slide 7: Ashland Performance Materials
Ashland Performance Materials Adjusted Results Summary’ Fiscal Second Quarter Three months ended ey, Three months ended March 31, Dec. 34, 2015 2014 Change 2014 Change Metric tons sold (in thousands) 1183 153.4 (23) % || 129.5 (9) % Sales $ 286 $ 413 (31) % || $ 338 (15) % Gross profit as a percent
Slide 8: Valvoline
Valvoline Oo x» Results Summary’ Fiscal Second Quarter Three months ended een y, Three months ended March 31, Dec. 31, 2015 2014 Change 2014 Change Lubricant gallons Gn millions) 40.5 39.6 2% 38.9 4% Sales $ 481 $ 503 (4) % || $ 492 (2) % Gross profit as a percent ofsales 36.1% 321 % 400 bp|| 333 %
Slide 9: Fiscal Second Quarter 2015 Corporate Items
Fiscal Second Quarter 2015 Corporate Items Adjusted effective tax rate of 21.0% — FY 2015 expectation remains at 24-26% Trade Working Capital’ ended quarter at 19.1% of sales Capital expenditures totaled $43 million — Full-year 2015 expectation remains ~$275-$300 million Free cash flow? generation o
Slide 10: Margin Profile Expectations
Margin Profile Expectations Update to FY 2015 and Long Term Execution and cost control expected to drive strong earnings growth with ASH EBITDA margin exceeding 19% in 2015 Expected Additonal Long-term Long-temn mts 25 Adjusted spin Normalized Adjusted EBMDA% Expansion EBITDA% Operating Segment EBII
Slide 11: Appendix A: Bridges
ASHLAND. Appendix A: Bridges
Slide 12: Revenue Bridge Q2 FY 2014 vs. Q2 FY 2015
Ashland Q2 FY 2014 vs. Q2 FY 2015 Ook \ Revenue Bridge ($ millions) Preliminary +0.4% Q2 2014 Volume Price Currency Acq/Div/ Q2 2015 Other’ « Volume growth across most end markets offset by currency headwinds and divestitures. « Raw material pass through was primary driver to lower overall pricing +
Slide 13: Adjusted EBITDA Bridge Q2 FY 2014 vs. Q2 FY 2015
Ashland Q2 FY 2014 vs. Q2 FY 2015 QO x Adjusted EBITDA Bridge ($ millions) Preliminary 40 38 7 (16) (10) Q22014 —Volume/ Margin SG&A Currency — Other 2.2015 Mix Expenses Translation « Volumes, mix, and margin contributed $48 million to EBITDA ¢ SG&A, driven by restructuring savings, resulted in $7 m
Slide 14: Ashland Specialty Ingredients Adjusted EBITDA Bridge
Ashland Specialty Ingredients Adjusted EBITDA Bridge {smitions) Q2 FY 2014 versus Q2 FY 2015 7 9 8 0 (12) Q2 2014 Volume/ Margin SG&A Currency Other Q2 2015 Mix Expenses Translation e Strong mix, good margins, and reduced SG&A drove 9% YOY increase to EBITDA « Currency, driven by Euro, was a $12 mil
Slide 15: Ashland Performance Materials Adjusted EBITDA Bridge
Ashland Performance Materials Adjusted EBITDA Bridge {(Smilions) Q2 FY 2014 versus Q2 FY 2015 17 Preliminary @22014 = Volume/ = Margin SG&A Currency — Other. Q22015 Mix Expenses Translation e Lower input costs were primary driver to improved margins « Other category reflects impact of ASK and elasto
Slide 16: Valvoline Adjusted EBITDA Bridge
Valvoline Adjusted EBITDA Bridge {smitions) Q2 FY on versus Q2 FY 2015 Q2 2014 Volume! Margin Currency Other Q2 2015 Mix expenses Translation e Good volume, mix and lower input costs primary drivers to EBITDA growth « Currency was moderate headwind 6
Slide 17: Appendix B: Volume Trends and Liquidity and Net Debt
ASHLAND. Appendix B: Volume Trends and Liquidity and Net Debt
Slide 18: Normalized Volume Trends
Normalized Volume Trends‘ 110% 105% Rolling Four Quarters 100% 95% 90% Mar 13. Jun 13, Sept 13 Dec3 Mar'14 Period Ended Jun'14 Sept 14 ‘Excludes volumes associated with elastomers forall periods. Includes volumes associated with ISPfor all periods. 2.8) and APM reflect realignment of adhesives and i
Slide 19: Liquidity and Net Debt
Liquidity and Net Debt {Sin millions) Mar 31, qui 015 Cash sot ‘Available evolver and AR acilty capacity 1156 Liguidty S_ 2.067 Interest A Mar. 31, Debt Expration Rate Gi 1.750% senior notes, Besant, gggqza 4754 Bal BS. 2.879% senor notes, ‘par $700 rillion = ae Bat 5B 700 2.000% senior notes, ‘par
Slide 20: Appendix C: Business Profiles
ASHLAND. Appendix C: Business Profiles 12 Months Ended March 31, 2015
Slide 21: Corporate Profile
Corporate Profile Qyy x) lest - $5.9 Billi By commercial unit By geography Europe 24% Ingredients“ ashiand GS Performance Materials 24% Asia Pacific 16% + For 12 months ended March 31, 2016. 2 Ashland includes only U.S. and Canada in its North America designation.
Slide 22: Corporate Profile
Corporate Profile O ted EBITDA’ 1.1 Bill Ashland Performance NYSE Ticker Symbol: ASH Materials Be Total Employees: ~10,000 aoa Naltoline Outside North America ~30% ie 35% SS Number of Countries More in Which Ashland than 100 Has Sales: 2 + For 12 months endedMarch31, 2016, See Appendoc D for reconci
Slide 23: Ashland Specialty Ingredients
Ashland Specialty Ingredients asx ) A global leader of cellulose ethers and vinyl pyrrolidones Sales Sales Sales by Market” by Product by Geography PVP Adhesive. 18% se 9 m Pacific 12% 5 ae pe Latin Americal Other: 10%, Personal | %, North America Care a y 24% 3 Sh For 12 Months Ended March 31, 2015
Slide 24: Ashland Performance Materials
Ashland Performance Materials ask ) Global leader in unsaturated polyester resins and vinyl ester resins Sales Sales Sales by Market by Product by Geography Transportation & 2% Elastomers? Europe Process 13% Intermediates! 34% Indu Solvents 26% s es Atle paaractio” : North America Composites 4% 61%
Slide 25: Valvoline
. . /- Valvoline: a leading worldwide producer and distributor of, ) x \ premium-branded lubricants, automotive chemicals and car-care products Sales Sales International Sales by Market by Product by Region? ea Australia Valvoline a instantoil, Valvoline S 22% cee International is 29% Lubricants 7 L
Slide 26: Appendix D: Non-GAAP Reconciliation
ASHLAND. Appendix D: Non-GAAP Reconciliation
Slide 27: Reconciliation of Non-GAAP Data for 12 Months Ended March 31, 2015
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 12 Months Ended March 31, 2015 G millions, except percentages) Sales’ Q215 115 414 314 Total ‘Specialty Ingredients 583, 561 635 32,432 Performance Materials 286 338 383 42000 1,427 Valvoline 484 492 520 532____-2,025 Tot
Slide 28: With good chemistry great things happen.
ASHLAND. With good chemistry great things happen.”