Slide 1: First-Quarter Fiscal 2015 Earnings Conference Call
First-Quarter Fiscal 2015 Earnings Conference Call January 27, 2015
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: Executive Summary of Financial Results
Fiscal First Quarter 2015 Executive Summary of Financial Results1 • Reported EPS from continuing operations of $0.57 Adjusted earnings of $1.46 vs. $1.12 per share in prior year • Sales of $1.4 billion, down 3% from year-ago period Normalized for currency and divestitures, sales would have incre
Slide 4: Specialty Ingredients Adjusted Results Summary
Ashland Specialty Ingredients Adjusted Results Summary1 ($ in millions) Fiscal First Quarter Three months ended Preliminary Three months ended Dec. 31, Sept. 30, 2014 2013 Change 2014 Change Metric tons sold (in thousands) - Actives basis 79.9 81.7 (2) % 91.1 (12) % Sales $ 561 $ 581 (3) % $ 635 (12
Slide 5: Specialty Ingredients Near-term opportunities/challenges
Ashland Specialty Ingredients Near-term opportunities/challenges ($ millions) Tailwinds Headwinds 2-3% 0-1% (0-1%) (0.5-1%) 2,498 (2.5-3%) (0-2%) 2014 Sales Base business HEC Base business Portfolio Currency 2015 supporting capacity supporting Pruning Translation Expected healthy end expansion chall
Slide 6: Performance Materials Adjusted Results Summary
Ashland Performance Materials Adjusted Results Summary1 ($ in millions) Fiscal First Quarter Three months ended Preliminary Three months ended Dec. 31, Sept. 30, 2014 2013 Change 2014 Change Metric tons sold (in thousands) 129.5 137.9 (6) % 145.1 (11) % Sales $ 338 $ 365 (7) % $ 383 (12) % Gross pro
Slide 7: Performance Materials Business Update
Ashland Performance Materials Business Update • Strategic actions taken to improve the business Sale of elastomers Continued plant rationalization • Composites market strengthening Macro tailwinds Strong US economy and recovery in China Lower inputs benefitting near term • Butanediol marke
Slide 8: Valvoline Results Summary
Valvoline Results Summary1 ($ in millions) Fiscal First Quarter Three months ended Preliminary Three months ended Dec. 31, Sept. 30, 2014 2013 Change 2014 Change Lubricant gallons (in millions) 38.9 38.6 1 % 41.5 (6) % Sales $ 492 $ 486 1 % $ 520 (5) % Gross profit as a percent of sales 33.3 % 31.2
Slide 9: Valvoline Pricing Dynamics
Valvoline Pricing Dynamics Recent base oil decreases provide short-term price lag benefit U.S. Lubricants Volume New pricing strategies have reduced lag periods, Pricing dynamics and base oil significantly improving Market Based changes vary across int’l regions, Valvoline’s earnings stability impac
Slide 10: Performance Summary
Fiscal First Quarter 2015 Performance Summary 2015 off to a good start with earnings and growth across each of the three businesses…. Good growth in the highest margin areas of the business Strong cost execution, led by restructuring program Raw material tailwinds / FX headwinds Continued ac
Slide 11: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 12: Reconciliation of Non-GAAP Data
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 12 Months Ended December 31, 2014 ($ millions, except percentages) 1 Sales Q1 15 Q4 14 Q3 14 Q2 14 Total Specialty Ingredients 561 635 653 629 2,478 Performance Materials 338 383 420 413 1,554 Valvoline 492 520 532 503 2,
Slide 13: Ashland. With good chemistry great things happen.
ASHLARND. With good chemistry great things happen.