Slide 1: First-Quarter Fiscal 2017 Earnings
First-Quarter Fiscal 2017 Earnings January 26, 2017 / efficacy usability allure integrity profitability
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: Fiscal First Quarter 2017 Highlights
Fiscal First Quarter 2017 Highlights1 ($, Millions) Sales Adj. EBITDA margin Factors affecting year-over-year EBITDA ($, Millions) $1,600 30% 17 $1,248 $1,193 3 $1,163 $1,200 247 (28) 293 20% (2) (1) 21.2% 20.8% (21) 215 Margin by $800 18.0% Segment: ASI (6) 10% APM (17) $400 VVV (4) Corp (1) $0 0%
Slide 4: Consolidated Income Statement
Consolidated Income Statement Ashland Income Statement Sales Gross profit as a percent of sales Line items include Valvoline segment Selling, general and admin./R&D costs amounts consistent with Ashland’s historical Operating income reporting practice Operating income as a percent of sales Depreciat
Slide 5: Key Items Affecting Income
Fiscal First Quarter – Continuing Operations Key Items Affecting Income ($ in millions, except EPS) Operating Income Total Preliminary Ashland Ashland Unallocated Specialty P erformance and Earnings 2017 Ingredients Materials Valvoline Other Pre-tax After-tax per Share Separation costs $ (28) $ (28)
Slide 6: Adjusted Results Summary
Adjusted Results Summary1 ($ in millions) Fiscal First Quarter Three months ended Preliminary Three months ended Dec. 31, Sept. 30, 2016 2015 Change 2016 Change Sales $1,193 $1,163 3 % $1,248 (4) % Gross profit as a percent of sales 32.0 % 33.4 % (140) bp 32.9 % (90) bp Selling, general and admin./R
Slide 7: Ashland Specialty Ingredients Adjusted Results Summary
Ashland Specialty Ingredients Adjusted Results Summary1 ($ in millions) Fiscal First Quarter Three months ended Preliminary Three months ended Dec. 31, Sept. 30, 2016 2015 Change 2016 Change Metric tons sold (in thous.) - Actives basis 72.6 68.7 6 % 79.6 (9) % Sales $ 482 $ 476 1 % $ 532 (9) % Gross
Slide 8: Ashland 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, 2016 2015 Change 2016 Change Metric tons sold (in thousands) 110.6 106.2 4 % 108.7 2 % Sales $ 222 $ 231 (4) % $ 222 - % Gross profit as a
Slide 9: Corporate Items
Fiscal First Quarter 2017 Corporate Items • Adjusted corporate operating income of $13 million − Excluding Valvoline, Ashland FY 2017 expectation of $30-$35 million expense • Excluding financing charges, net interest expense of $40 million − Excluding Valvoline, Ashland FY 2017 expectation lowered t
Slide 10: Appendix A: Bridges
AppendixA: Bndges af Ashland always si
Slide 11: Revenue and Adjusted EBITDA Bridges
Ashland Q1 FY 2016 vs. Q1 FY 2017 Revenue and Adjusted EBITDA Bridges ($ millions) Preliminary Revenue Adjusted EBITDA 4% 1% 17 1,163 (2%) (0%) 1,193 3 247 (28) (2) (1) (21) 215 Margin by Segment: ASI (6) APM (17) VVV (4) Corp (1) Q1 2016 Volume / Price FX Acq/Div/ Q1 2017 Q1 2016 Volume Margin SG&A
Slide 12: Specialty Ingredients Revenue and Adjusted EBITDA Bridges
Ashland Specialty Ingredients Revenue and Adjusted EBITDA Bridges ($ millions) Preliminary Revenue Adjusted EBITDA 3% 6 3 476 (1%) (1%) (0)% 482 94 (6) (1) (1) 95 Q1 2016 Volume / Price FX Acq/Div/ Q1 2017 Q1 2016 Volume Margin SG&A FX Acq/Div/ Q1 2017 Mix Other / Mix Other • Sales revenue growth of
Slide 13: Performance Materials Revenue and Adjusted EBITDA Bridges
Ashland Performance Materials Revenue and Adjusted EBITDA Bridges ($ millions) Preliminary Revenue Adjusted EBITDA 3% 1 0% 231 (6%) (1%) 222 37 0 0 0 (17) 21 Q1 2016 Volume / Price FX Acq/Div/ Q1 2017 Q1 2016 Volume Margin SG&A FX Acq/Div/ Q1 2017 Mix Other / Mix Other • Composites volume growth of
Slide 14: Appendix B: Volume Trends and Liquidity and Net Debt
Appendix B: Volume Trends and Liquidity and Net Debt
Slide 15: Normalized Volume Trends
Normalized Volume Trends1 110% Rolling Four Quarters 105% 100% 95% 90% Specialty Ingredients Performance Materials 85% Dec '14 Mar '15 Jun '15 Sept '15 Dec '15 Mar '16 Jun '16 Sept '16 Dec '16 Period Ended 1 Excludes volumes associated with divestitures of elastomers and biocides and exited redisper
Slide 16: Liquidity and Net Debt
Liquidity and Net Debt ($ in millions) At December 31, 2016 Corporate Credit Ratings Liquidity Ashland Valvoline Cons. Moody's S&P Cash $ 468 236 704 Ba1 BB Ashland Available revolver and A/R facility capacity 817 478 1,295 Stable Stable Liquidity $ 1,285 714 1,999 Ba2 BB Valvoline Stable Stable Int
Slide 17: Scheduled Debt Payments
Scheduled Debt Payments ($ in millions) 1,200 1,000 Valvoline 800 Ashland 15 600 1,089 7 400 671 480 200 375 86 210 5 17 30 30 - FY '17 FY '18 FY '19 FY '20 FY '21 FY '22 FY '23 FY '24 FY '25 and after 17
Slide 18: Appendix C: Business Profiles
Appendix C: Business Profiles 12 Months Ended December 31, 2016
Slide 19: Corporate Profile: Sales
Corporate Profile Sales1 - $5.0 Billion By business unit By geography Ashland Specialty Europe Ingredients Ashland 23% 42% Performance North Materials America2 19% 54% Asia Pacific 16% Valvoline Latin 39% America/ Other - 7% 1 For 12 months ended December 31, 2016. 2 Ashland includes only U.S. and C
Slide 20: Corporate Profile: Adjusted EBITDA
Corporate Profile Adjusted EBITDA1 - $1.0 Billion Ashland Performance Materials 10% NYSE Ticker Symbol: ASH Total Employees2: ~6,000 Ashland Valvoline Specialty 44% Outside North America ~50% Ingredients 46% Number of Countries More in Which Ashland than 100 Has Sales: 1 For 12 months ended December
Slide 21: Ashland Specialty Ingredients
Ashland Specialty Ingredients A global leader of cellulose ethers, vinyl pyrrolidones and biofunctionals Sales Sales Sales 2 by Market by Product by Geography Coatings 15% PVP Asia Adhesive 16% 19% Europe Pacific Pharma 31% 20% 17% Vinyl Ethers 6% Personal Cellulosics Care 38% Other North 25% 15% Am
Slide 22: Ashland Performance Materials
Ashland Performance Materials A global leader in unsaturated polyester resins and vinyl ester resins Sales Sales Sales by Market by Product by Geography Other Process Europe Marine Industries Intermediates/ 37% 15% Solvents 27% 17% Composites Construction: 73% North Latin America/ Industrial 29% Ame
Slide 23: Appendix D: Non-GAAP Reconciliation
Appendix D: Non-GAAP Reconciliation1 1 Although Ashland provides forward looking guidance for adjusted EBITDA in this presentation, Ashland is not reaffirming or providing forward- looking guidance for U.S. GAAP reported financial measures or a reconciliation of forward-looking non-GAAP financial me
Slide 24: Reconciliation of Non-GAAP Data
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 12 Months Ended December 31, 2016 ($ millions, except percentages) 1 Sales Q1 17 Q4 16 Q3 16 Q2 16 Total Specialty Ingredients 482 532 552 529 2,095 Performance Materials 222 222 238 239 921 ValvolineAshla
Slide 25: ® Registered trademark, Ashland or its subsidiaries, registered in various countries ™ Trademark, Ashland
® Registered trademark, Ashland or its subsidiaries, registered in various countries ™ Trademark, Ashland or its subsidiaries, registered in various countries