Slide 1: Fourth-Quarter Fiscal 2012 Earnings
EXHIBIT 99.2 Fourth-Quarter Fiscal 2012 Earnings October 30, 2012 ® 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 and Section 21E of the Securities Exchange Act of 1934. In addition, Ashland may from time to time make forward-looking statements in its other filings wit
Slide 3: Fiscal Fourth Quarter 2012 Highlights
Fiscal Fourth Quarter 2012 Highlights 1 · Reported EPS from continuing operations of $(3.47) - Adjusted EPS of $1.87 versus $1.01 in Q4 2011 · Sales of $2.1 billion - 3% growth when normalized for currency and divestitures · Adjusted EBITDA of $349 million - 32% increase from pro forma Q4 2011 · Suc
Slide 4: Fiscal Fourth Quarter - Continuing Operations
Fiscal Fourth Quarter - Continuing Operations Key Items Affecting Income · Intangible amortization expense in September 2012 quarter of $29 million - Excluding intangible amortization, adjusted EPS would have been 25 cents higher, or $2.12
Slide 5: Adjusted Pro Forma Results Summary
Adjusted Pro Forma Results Summary 1 1 Ashland's earnings releases dated Oct. 30 and July 26, 2012, available on Ashland's website at http://investor.ashland.com, reconcile adjusted amounts to amounts reported under GAAP. · Prior year includes ISP on a full-quarter, pro forma basis · Adjusting for c
Slide 6: Normalized Volume Trends
Normalized Volume Trends 1 1 Excludes volumes associated with Casting Solutions and divested Pinova, Synlubes, and PVAc businesses for all periods. Includes volumes associated with ISP and Ara Quimica for all periods.
Slide 7: Adjusted Pro Forma EBITDA Bridge Q4 FY 2011 vs. Q4 FY 2012
82 264 349 Q4 FY 2011 vs. Q4 FY 2012 Adjusted Pro Forma EBITDA Bridge Q4 2011 Volume/Mix Q4 2012 Currency Translation Margin SG&A Expenses (3) (16) Other ($ millions) Preliminary · Improved gross margin in all four commercial units · Stronger dollar had a $16 million negative effect on EBITDA
Slide 8: Scheduled Debt Repayments by Fiscal Year
Scheduled Debt Repayments by Fiscal Year Liquidity and Net Debt ($ in millions)
Slide 9: Ashland Specialty Ingredients Results Summary
Ashland Specialty Ingredients Adjusted Pro Forma Results Summary 1 · Year-over-year volume declines driven by Energy and Coatings · $6 million plant shutdown negatively affected quarter 1 Ashland's earnings releases dated Oct. 30 and July 26, 2012, available on Ashland's website at http://investor.a
Slide 10: Ashland Specialty Ingredients EBITDA Bridge
22 38 193 155 Ashland Specialty Ingredients Adjusted Pro Forma EBITDA Bridge Q4 2011 Volume/ Mix Q4 2012 Currency Translation Margin SG&A Expenses Q4 FY 2011 versus Q4 FY 2012 (16) · Improved business mix, more than offset volume declines · Pricing efforts continue to cover raw material cost increas
Slide 11: Ashland Specialty Ingredients: Guar
· Guar destocking has continued - Will likely remain soft until January · Dynamics differ by end-product - Higher technology “derivatized guars” doing well - Large price/volume declines in more commoditized “straight guar” · Price remains highly volatile in straight guar - Potential $15 to $25 milli
Slide 12: Ashland Specialty Ingredients Business Outlook
· Expect strong performance in other parts of the business - Pharmaceutical, Personal Care and Coatings · New products and technologies continue to gain share - New products represented 21% of sales for fiscal 2012 · Significant capital investment expected over next several years - High overall retu
Slide 13: Ashland Water Technologies Adjusted Results Summary
Ashland Water Technologies Adjusted Results Summary 1 · Normalized for currency and adjusted for divestitures, sales were down 4% from the year-ago quarter 1 Ashland's earnings releases dated Oct. 30 and July 26, 2012, available on Ashland's website at http://investor.ashland.com, reconcile adjusted
Slide 14: Ashland Water Technologies Adjusted EBITDA Bridge
50 33 Q4 2011 Volume/ Mix Q4 2012 Currency Translation Margin SG&A Expenses Q4 FY 2011 versus Q4 FY 2012 (7) (4) Other (8) · Volumes down approximately 4%, excluding divestitures · Currency translation had materially negative effect ($ millions) Preliminary Ashland Water Technologies Adjusted EBITDA
Slide 15: Ashland Water Technologies Business Update
· Business has underperformed versus our expectations - Sales and GP% have stabilized last three quarters · Results should improve and we are focused on sales growth and improving market penetration · John Panichella, as Group Operating Officer, will be responsible for Specialty Ingredients and Wate
Slide 16: Ashland Water Technologies Strategic Actions
· Improve execution and overall accountability · Implement more disciplined approach to SG&A - Tightly control our costs - Improve sales efficiency · Tighter control over pricing and contract management Ashland Water Technologies Strategic Actions
Slide 17: Ashland Performance Materials Results Summary
Ashland Performance Materials Adjusted Pro Forma Results Summary 1 · Excluding Casting Solutions and divested PVAc business, volumes up 4% versus Q4 2011 · Sequential decline in GP% primarily due to butadiene 1 Ashland's earnings releases dated Oct. 30 and July 26, 2012, available on Ashland's websi
Slide 18: Ashland Performance Materials EBITDA Bridge
9 31 31 Ashland Performance Materials Adjusted Pro Forma EBITDA Bridge Q4 2011 Volume/ Mix Q42012 Currency Translation Margin SG&A Expenses Q4 FY 2011 versus Q4 FY 2012 (2) Other (7) · Negative mix offset normalized volume gains · Increased margins in Adhesives and Composites · Effects of ASK Chemic
Slide 19: Ashland Consumer Markets Adjusted Results Summary
Ashland Consumer Markets Adjusted Results Summary 1 · Stable volumes sequentially despite normal seasonal downturn · Recent raw material cost declines have led to more normalized margins 1 Ashland's earnings releases dated Oct. 30 and July 26, 2012, available on Ashland's website at http://investor.
Slide 20: Ashland Consumer Markets Adjusted EBITDA Bridge
34 83 39 Ashland Consumer Markets Adjusted EBITDA Bridge · Stronger business mix offset small volume declines · Margin expansion driven by lower raw material costs Q4 2011 Volume/ Mix Q4 2012 Currency Translation Margin SG&A Expenses Q4 FY 2011 versus Q4 FY 2012 Other ($ millions) Preliminary (1)
Slide 21: Pension and OPEB
Pension and OPEB · Ashland recognizes actuarial gains and losses in the year they occur · Asset returns exceeded expectations, but discount rates fell over 100 basis points - Led to $493 million corporate charge · 2013 expectations - Pension/OPEB income of $30 million versus expense of $7 million in
Slide 22: Fiscal Fourth Quarter 2012 Corporate Items
Fiscal Fourth Quarter 2012 Corporate Items · Capital expenditures of $134 million · Net interest expense of $54 million after adjusting for refinancing related costs - Unusually low interest income during the quarter · Effective tax rate of 21% - Excludes key items - Brings fiscal 2012 to 26%, • 201
Slide 23: Fiscal Fourth Quarter 2012 Performance Summary
Fiscal Fourth Quarter 2012 Performance Summary · Solid performance versus the prior year but did have areas of softness sequentially · As compared with pro forma September 2011 quarter - Normalized volumes down 1% - Sales of $2.1 billion - EBITDA of $349 million, up 32% · EBITDA margin of approximat
Slide 24: Fiscal 2012 Accomplishments
Fiscal 2012 Accomplishments · Adjusted EPS of $6.62 - 70% increase from fiscal 2011 · Grew pro forma EBITDA 17% versus fiscal 2011 - Good growth in Specialty Ingredients, Performance Materials and Consumer Markets · Attained $75 million in savings through corporate cost reduction program · Completed
Slide 25: Near-Term Outlook
Near-Term Outlook · Demand trends generally holding - Guar trends still developing · Regional performance still mixed - Continued growth in North America - Europe and Asia remain soft
Slide 26: Fiscal 2013 Objectives
Fiscal 2013 Objectives · Expand sales and contain costs - Improve performance in Water Technologies - Focus growth capital in Specialty Ingredients - Achieve sales gains in Consumer Markets and Performance Materials · Complete remaining $15 million in ISP cost synergies · Achieve significant increas
Slide 27: Ashland. With good chemistry great things happen.
ASHLAND. With good chemistry great things happen.” ASHLAND.
Slide 28: Appendix A: Business Profiles
Appendix A: Business Profiles 12 Months Ended Sept. 30, 2012
Slide 29: Corporate Profile
North America 2 53% Asia Pacific 13% Latin America/ Other - 7% Europe 27% Ashland Specialty Ingredients 35% Ashland Water Technologies 21% Ashland Performance Materials 19% Ashland Consumer Markets 25% Sales 1 - $8.2 Billion Corporate Profile By commercial unit By geography 1 For 12 months ended Sep
Slide 30: Corporate Profile
NYSE Ticker Symbol: ASH Total Employees: ~15,000 Outside North America: ~40% Number of Countries in Which Ashland Has Sales: More than 100 Ashland Specialty Ingredients 57% Ashland Water Technologies 11% Ashland Performance Materials - 12% Ashland Consumer Markets 20% Adjusted EBITDA 1 - $1.4 Billio
Slide 31: Ashland Specialty Ingredients
Cellulosics 31% PVP 15% Solvents/ Intermediates 18% Pharma/ Nutrition 18% Personal Care 21% Specialty Performance 25% North America 37% Asia Pacific 17% Europe 37% Coatings 13% Industrial 23% Guar - 12% Other 10% Ashland Specialty I ngredients A global leader in water-soluble and film-forming polyme
Slide 32: Ashland Water Technologies
Process 27% Utility 29% Functional 44% Municipal - 9% Paper 58% Industrial 2 33% North America 45% Europe 34% Latin America/ Other - 9% Ashland Water Technologies Providing specialty chemicals and services to water-intensive industries Sales by Geography Fiscal Year Ended Sept. 30, 2012 Sales: $1.7
Slide 33: Ashland Performance Materials
Composites 54% Adhesives 21% Elastomers 25% Construction: Residential 14% Marine 9% Pkg. & Converting 15% Construction: Industrial 28% North America 70% Asia Pacific - 8% Europe 18% Latin America/ Other 4% Transportation 28% Ashland Performance Materials Global leader in composite resins, specialty
Slide 34: Ashland Consumer Markets
Lubricants 85% Chemicals - 8% Do-It- Yourself 32% DIFM: Valvoline Instant Oil Change 15% DIFM: Installer Channel 21% Valvoline International 32% Asia Pacific ex Australia 32% Europe 27% Latin America/ Other - 16% Antifreeze 5% Filters 2% Australia 25% Ashland Consumer Markets: A leading worldwide ma
Slide 35: Appendix B: Reclassifications and Regulation G Reconciliations
Appendix B: Reclassifications and Regulation G Reconciliations
Slide 36: Reconciliation of Non-GAAP Data for Fiscal Year Ended Sept. 30, 2012
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for Fiscal Year Ended Sept. 30, 2012 ($ millions, except percentages) 1 Calculation of adjusted EBITDA for each quarter has been reconciled within each quarterly earnings release filed with the SEC and posted on Ashland's web
Slide 37: Ashland.
ASHLAND. With good chemistry great things happen.” ASHLAND.