Slide 1: Earnings conference call third-quarter fiscal 2023
earnings conference call third-quarter fiscal 2023 July 26, 2023 I 9:00 am ET
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 Q3 performance summary Q3 financial results outlook closing comments Q&A oO Oo 0 0 0 shina J aeacy wabty okee negty wancot> = (Na <f Ashland 3 always solving
Slide 4: Q3 performance summary
Slide 5: Q3 sales, adjusted EBITDA and adjusted EPS
sales adjusted EBITDA adjusted EBITDA % adjusted EPS2 (15) % (24) % (260) bps (35) % $546 MM $133 MM 24.4 % $1.23 strong cost recovery inflation recovery offset sustained quality 1.6 million shares and pharma demand by customer de- margins offset by offset by continued stocking and inventory- invent
Slide 6: Customer destocking impacted sales; EBITDA margins impacted by inventory control
customer destocking impacted sales with Adj. EBITDA margins impacted by inventory control3 2 2
Slide 7: Q3 financial results
Slide 8: Fiscal-third quarter adjusted results
fiscal-third quarter adjusted results! operating results summary Ashland sales 86 gross profit margin 33.3% 37.3% “So8A/ RED cots tong omotiaton gg | operating income $114 pe ee ee EBITDA margin 24.4% 27.0% “Gs lorekdngceaitton amertaten? Fa ee ongoing free cash flow? $13 All figures are presented o
Slide 9: Life Sciences year-over-year sales
o o o o o -DD -DD +MSD pharma nutraceuticals nutrition & other Q3 FY23 year-over-year sales (HSD/MSD/LSD = high, mid or low single-digit %. DD = double-digit %)
Slide 10: Personal Care year-over-year sales
o o o o -DD -LSD -DD -DD o skin care hair care oral care household Q3 FY23 year-over-year sales (HSD/MSD/LSD = high, mid or low single-digit %. DD = double-digit %)
Slide 11: Specialty Additives year-over-year sales
o o o o -DD u -DD o coatings construction, energy, performance spec. Q3 FY23 year-over-year sales (HSD/MSD/LSD = high, mid or low single-digit %. DD = double-digit %)
Slide 12: Intermediates year-over-year sales
o o o -DD -DD u merchant captive Q3 FY23 year-over-year sales (HSD/MSD/LSD = high, mid or low single-digit %. DD = double-digit %)
Slide 13: Strong balance sheet
strong balance sheet strong financial position with increased flexibility new $1 billion evergreen share repurchase authorization ° replaces previous 2022 authorization which had $200 million remaining at termination ° 3.1 million shares repurchased during current fiscal year under the previous 2022
Slide 14: Always solving
always solving <f Ashland
Slide 15: Impact of destocking
impact of destocking customer results! Ashland results? consumer personal care demand personal care * sales growth +MSD% a dynamics * sales growth -HSD% WV * volume growth -MSD% WV vs. * volume growth -DD% W architectural coatings architectural coatings customer * sales growth +MSD% a destocking * s
Slide 16: Outlook updated in late June
outlook updated in late June fiscal-year outlook for sales and earnings forward looking insights © preliminary July results indicate continued customer destocking o global consumer remains resilient as evidenced by customer sales/volume and consumer spending, travel & leisure, etc. ° currently antic
Slide 17: Longer-term growth drivers unchanged
longer-term growth drivers unchanged 1) expanding capacity of leading : ingredients technologies near-term destocking dynamics do not 2) globalization of high-value businesses : impact longer-term 3) innovation growth opportunities or 4) bolt-on M&A opportunities priorities «<f Ashland always solvin
Slide 18: Ashland innovation day
Ashland innovation day live / webcast event on September 12 18 planned topics & events ° investing in innovation and sustainable growth new scalable technology platforms moderated Q&A sessions with Ashland leaders research & development poster sessions with scientists guided lab tours at wilmington,
Slide 19: Closing comments
Slide 20: Ashland
Ashland focused additives and specialty ingredients company 7 7 leadership positions in high-quality markets and o flexible, agile with exciting profitable growth opportunities strong technology, commercial and © consistent execution operations capabilities global infrastructure © solid growth compe
Slide 21: Thank you and Q&A
Slide 22: Appendix A: adjusted results
appendix A: adjusted results summary and balance sheet
Slide 23: Adjusted results summary and balance sheet
1 All figures are presented on an adjusted basis except Sales and Diluted share count (million shares). Appendix B reconciles adjusted amounts to amounts reported under GAAP, including reconciliations of net income to EBITDA and adjusted EBITDA, operating income to adjusted operating income, income
Slide 24: Q3 business unit consolidation
Q3 business Unit consolidation! gross profit $182 EBITDA ($19) $133 1 Allfigures are presented on an adjusted basis except Sales. Appendix B reconciles adjusted amounts fo amounts reported under GAAP, including reconciliations of net income to EBITDA and adjusted EBITDA, operating income to adjusted
Slide 25: Debt, expiration and interest rate
Moody’s 6/30/23 ($US in millions) expiration interest rate S&P rating rating balance
Slide 26: Appendix B: non-GAAP reconciliation
appendix B: non-GAAP reconciliation! 1 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 mea
Slide 27: Reconciliation of Non-GAAP Data
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 12 Months Ended June 30, 2023 ($ millions, except percentages) 1 Sales Q3 23 Q2 23 Q1 23 Q4 22 Total Q3 22 Life Sciences $ 219 $ 240 $ 207 $ 213 $ 879 $ 228 Personal Care 146 167 138 188 639 172 Specialty Additiv es 152 1
Slide 28: Segment Components of Key Items, Three Months Ended June 30, 2023
Ashland Inc. and Consolidated Subsidiaries : Segment Components of Key Items for Applicable Income Statement Captions In millions - preliminary and unaudited) Three Months Ended June 30, 2023 Life Personal Specialty Unallocated ($ millions) Sciences Care Additives Intermediates & Other Total OPERATI
Slide 29: Segment Components of Key Items, Three Months Ended June 30, 2022
Ashland Inc. and Consolidated Subsidiaries : Segment Components of Key Items for Applicable Income Statement Captions In millions - preliminary and unaudited) {$ millions) Three Months Ended June 30, 2022 Life Personal Specialty Unallocated Sciences Care Additives Intermediates & Other Total OPERATI
Slide 30: Free Cash Flow and Adjusted Operating Income
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Free Cash Flow and Adjusted Operating Income
Slide 31: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Ashland Inc. Reconciliation of Non-GAAP Data – Adjusted EBITDA for the 3 Months Ended June 30, 2023 and 2022 ($ millions)
Slide 32: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Ashland Inc. Reconciliation of Non-GAAP Data – Adjusted EBITDA for the 3 Months Ended June 30, 2023 and 2022 ($ millions)
Slide 33: Specialties Additives and Intermediates Adjusted EBITDA
Specialties Additives and Intermediates Reconciliation of Non-GAAP Data – Adjusted EBITDA for the 3 Months Ended June 30, 2023 and 2022 ($ millions)
Slide 34: Adjusted Income from Continuing Operations
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Adjusted Income from Continuing Operations ($ millions)
Slide 35: Adjusted Diluted EPS from Continuing Operations
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Adjusted Diluted EPS from Continuing Operations
Slide 36: Ashland always solving
oT ct Ashland always solving