Slide 1: First-Quarter Fiscal 2014 Earnings
* First-Quarter Fiscal 2014 Earnings January 27, 2014 ® Registered trademark, Ashland or its subsidiaries, registered in various countries ™ Trademark, Ashland or its subsidiaries, registered in various countries
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 wor
Slide 3: Fiscal First Quarter 2014 Highlights
* Fiscal First Quarter 2014 Highlights1 Reported EPS from continuing operations of $1.42 Adjusted EPS of $1.42 versus $1.12 in Q1 2013 Sales of $1.9 billion Seasonally weakest quarter Adjusted EBITDA of $289 million 8% increase from Q1 2013 Prior year includes $31 million loss on straight guar Volum
Slide 4: Adjusted Results Summary
* Adjusted Results Summary1 Sales flat with prior year Operating income increased 10% year-over-year Year-ago quarter included $31 loss on straight guar 1 Ashland's earnings releases dated Jan. 27, 2014, and Nov. 5, 2013, available on Ashland's website at http://investor.ashland.com, reconcile adjus
Slide 5: Specialty Ingredients Adjusted Results Summary
* Ashland Specialty Ingredients Adjusted Results Summary1 Volume up 3% versus prior year; excluding Intermediates and Solvents, volume increased 10% Gross profit negatively affected by lower selling prices; primarily guar and Intermediates and Solvents 1 Ashland's earnings releases dated Jan. 27, 20
Slide 6: Water Technologies Adjusted Results Summary
* Ashland Water Technologies Adjusted Results Summary1 Sales increased 4% versus prior year; both pulp & paper and industrial water had year-over-year gains Sequential volume decline in line with normal seasonality 1 Ashland's earnings releases dated Jan. 27, 2014 and Nov. 5, 2013, available on Ashl
Slide 7: Performance Materials Adjusted Results Summary
* Ashland Performance Materials Adjusted Results Summary1 Strong volume gains in both Adhesives and Composites GP% increase due to strong core volumes and improved mix Adhesives gross profit up 21%, Composites up 28% 1 Ashland's earnings releases dated Jan. 27, 2014 and Nov. 5, 2013, available on As
Slide 8: Consumer Markets Adjusted Results Summary
* Ashland Consumer Markets Adjusted Results Summary1 Year-over-year volume increase led by International business Margin improvement versus prior year due to lower input costs 1 Ashland's earnings releases dated Jan. 27, 2014 and Nov. 5, 2013, available on Ashland's website at http://investor.ashlan
Slide 9: Fiscal First Quarter 2014 Corporate Items
* Fiscal First Quarter 2014 Corporate Items Capital Expenditures of $52 million Full year forecast of $275 million remains unchanged Effective tax rate of 21.8% Expected full year rate remains at 25% Trade Working Capital1 ahead of target 17.2% versus target of 17.7% Free cash flow2 usage of $15 mil
Slide 10: Global Restructuring Program Update
* Perform. Specialties (incl. Intermed. & Solvents Global Restructuring Program Update Specialty Ingredients Water Technologies Performance Materials Consumer Markets Pharm. & Nutrition Industrial Coatings Pulp & Paper Personal Care Industrial Water Managed Globally Elastomers Adhesives Composites M
Slide 11: Appendix A: EBITDA Bridges
ASHLAND. Appendix A: EBITDA Bridges
Slide 12: Q1 FY 2013 vs. Q1 FY 2014 Adjusted EBITDA Bridge
* Ashland Q1 FY 2013 vs. Q1 FY 2014 Adjusted EBITDA Bridge 10 Q1 2013 Volume/Mix Q1 2014 Currency Translation Margin 13 268 289 SG&A Expenses (9) (2) Other 9 ($ millions) Preliminary Stronger volumes and improved margins contributed $23 million to EBITDA Higher SG&A costs were a $9 million headwind
Slide 13: Specialty Ingredients Adjusted EBITDA Bridge
* Ashland Specialty Ingredients Adjusted EBITDA Bridge Q1 2013 Volume/ Mix Q1 2014 Currency Translation Margin SG&A Expenses Q1 FY 2013 versus Q1 FY 2014 1 (3) (3) 110 $11 million I&S headwind was largest contributor to year-over-year decline in EBITDA Year-ago quarter had $31 million loss on straig
Slide 14: Ashland Water Technologies Adjusted EBITDA Bridge
* Q1 2013 Volume/ Mix Q1 2014 Currency Translation Margin SG&A Expenses Q1 FY 2013 versus Q1 FY 2014 34 10 1 0 1 Other (1) 45 $10 million increase to EBITDA led by strong volume gains in Industrial Water Price over cost slightly favorable yielding $1 million margin improvement ($ millions) Prelimina
Slide 15: Performance Materials Adjusted EBITDA Bridge
* Ashland Performance Materials Adjusted EBITDA Bridge Q1 2013 Volume/ Mix Q1 2014 Currency Translation Margin SG&A Expenses Q1 FY 2013 versus Q1 FY 2014 2 4 2 Other (2) 34 Strong performances from Adhesives and Composites offset by weak Elastomers volume Better pricing and cost control contributed
Slide 16: Consumer Markets Adjusted EBITDA Bridge
* Ashland Consumer Markets Adjusted EBITDA Bridge Margin expansion driven by lower raw-material costs SG&A increase due primarily to higher advertising and promotions $6 million favorable arbitration ruling on commercial agreement recorded in Other Q1 2013 Volume/ Mix Q1 2014 Currency Translation Ma
Slide 17: Appendix B: Key Items, Volume Trends and Liquidity and Net Debt
Appendix B: Key Items, Volume Trends and Liquidity and Net Debt
Slide 18: Fiscal First Quarter – Continuing Operations Key Items Affecting Income
* Fiscal First Quarter – Continuing Operations Key Items Affecting Income Key Items Affecting December 2013 quarter No key items Key Items Affecting December 2012 quarter Business interruption insurance claim, favorable $22 million Restructuring and integration charges of $2 million, primarily relat
Slide 19: Normalized Volume Trends
* Normalized Volume Trends1 Period Ended 1 Excludes volumes associated with Casting Solutions and divested Pinova, Synlubes, and PVAc businesses for all periods. Includes volumes associated with ISP and Ara Quimica for all periods. Rolling Four Quarters
Slide 20: Liquidity and Net Debt
* Liquidity and Net Debt ($ in millions) Scheduled Debt Repayments by Fiscal Year
Slide 21: Appendix C: Business Profiles
Appendix C: Business Profiles 12 Months Ended December 31, 2013
Slide 22: Corporate Profile
* Corporate Profile By commercial unit By geography 1 For 12 months ended December 31, 2013. 2 Ashland includes only U.S. and Canada in its North America designation. North America2 52% Asia Pacific 15% Latin America/ Other - 7% Europe 26% Ashland Specialty Ingredients 33% Ashland Water Technologies
Slide 23: Corporate Profile
Corporate Profile Adjusted EB Ashland Water Technologies Specialty Ingredients Ashland 46% Consumer Markets 29% NYSE Ticker Symbol: ASH Total Employees: ~15,000 Outside North America ~40% Number of Countries ‘ More in Which Ashland than 100 Has Sales: ASHLAND. 4 For 12 months ended December 31, 2013
Slide 24: Specialty Ingredients
* Ashland Specialty Ingredients A global leader in water-soluble and film-forming polymers 1 See Appendix B for reconciliation to amounts reported under GAAP. For 12 Months Ended December 31, 2013 Sales: $2.6 billion Adjusted EBITDA: $543 million1 Adjusted EBITDA Margin: 20.9%1 Sales by Product Cell
Slide 25: Water Technologies
* Ashland Water Technologies Providing specialty chemicals and services to water-intensive industries Sales by Geography For 12 Months Ended December 31, 2013 Sales: $1.7 billion Adjusted EBITDA: $176 million1 Adjusted EBITDA Margin: 10.1%1 Sales by Product Process 28% Utility 26% Functional 46% Oth
Slide 26: Performance Materials
* Ashland Performance Materials Global leader in composite resins, specialty adhesives and elastomers Sales by Geography For 12 Months Ended December 31, 2013 Sales: $1.5 billion Adjusted EBITDA: $126 million1 Adjusted EBITDA Margin: 8.5%1 Sales by Product Composites 59% Adhesives 22% Elastomers 19%
Slide 27: Consumer Markets
* Ashland Consumer Markets: A leading worldwide marketer of premium-branded automotive lubricants and chemicals International Sales by Region2 For 12 Months Ended December 31, 2013 Sales: $2.0 billion EBITDA: $340 million1 EBITDA Margin: 17.0%1 Sales by Product Lubricants 85% Chemicals - 8% Do-It-Yo
Slide 28: Appendix D: Reclassifications and Regulation G Reconciliations
Appendix D: Reclassifications and Regulation G Reconciliations
Slide 29: Reconciliation of Non-GAAP Data for 12 Months Ended December 31, 2013
* Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 12 Months Ended December 31, 2013 ($ millions, except percentages) 1 Quarterly totals may not sum to actual results due to quarterly rounding conventions. Calculation of adjusted EBITDA for each quarter has been reconci
Slide 30: Ashland. With good chemistry great things happen.
ASHLAND. With good chemistry great things happen.” ASHLAND. a0