Slide 1: Earnings conference call second-quarter fiscal 2023
earnings conference call second-quarter fiscal 2023 May 3, 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 Q2 performance summary Q2 financial results outlook closing comments Q&A oO Oo 0 0 0 <f Ashland always solving
Slide 4: Q2 performance summary
Slide 5: Q2 performance summary: sales, adjusted EBITDA and EPS
sales adjusted EBITDA adjusted EBITDA % adjusted EPS2 (-) % (11) % (300) bps (5) % $603 MM $145 MM 24.0 % $1.43 strong cost recovery inflation recovery / mix sustained quality and pharma demand offset by regional de- 1.5 MM shares margins offset by winter offset by continued de- stocking and winter
Slide 6: Sales growth in pharma offset by de-stocking
sales1 growth in pharma offset by de-stocking with Adj. EBITDA margins impacted by winter storm3 2 2
Slide 7: Q2 financial results
Slide 8: Fiscal-second quarter adjusted results
fiscal-second quarter adjusted results! operating results summary Ashland soles $603 8604 gross profit margin 32.7 % 36.4% “So8A/ RED cots ntengieomoteaton Fn eee operating income $101 pe er EBITDA margin 24.0 % 27.0% “GS lorekdngceaittonamertatenf? Fe ee ongoing free cash flow? ($5) ao All figures
Slide 9: Life Sciences Q2 FY23 year-over-year sales
o o o o o o -DD +DD +MSD pharma nutraceuticals nutrition & other Q2 FY23 year-over-year sales (HSD/MSD/LSD = high, mid or low single-digit %. DD = double-digit %)
Slide 10: Personal Care Q2 FY23 year-over-year sales
o o o o -DD -DD +DD +MSD skin care hair care oral care household Q2 FY23 year-over-year sales (HSD/MSD/LSD = high, mid or low single-digit %. DD = double-digit %)
Slide 11: Specialty Additives Q2 FY23 year-over-year sales
o o o o o -MSD u -DD coatings construction, energy, performance spec. Q2 FY23 year-over-year sales (HSD/MSD/LSD = high, mid or low single-digit %. DD = double-digit %)
Slide 12: Intermediates Q2 FY23 year-over-year sales
o o o -DD -DD u merchant captive Q2 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 share repurchases under $500 million evergreen share repurchase authorization ° initiated two Rule 1065-1 trading plan agreements during the quarter totaling $200 million ° repurchased 1.5 million shares during the March q
Slide 14: Outlook
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Slide 15: Updated outlook
Updated outlook reducing full-year outlook for sales and earnings forward looking insights ° ° ° 15 tailwind from inflation-recovery actions pharma demand remains strong customer de-stocking in Personal Care and Specialty Additives persisted through April inventory control actions initiated in April
Slide 16: Closing comments
Slide 17: 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 18: Thank you and Q&A
Slide 19: Appendix A: adjusted results
appendix A: adjusted results summary and balance sheet
Slide 20: Adjusted results summary
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 21: Q2 business unit consolidation
Q2?2 business Unit consolidation! gross profit $197 EBITDA ($19) 1 Allfigures are presented on an adjusted basis except Sales. Appendix B reconciles adjusted amounts fo amounts reported under GAAP, including reconciliations of net income to EBITDA and adjusted EBITDA, operating income to adjusted op
Slide 22: Debt and credit ratings
Moody’s 3/31/23 ($US in millions) expiration interest rate S&P rating rating balance
Slide 23: 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 24: Reconciliation of Non-GAAP Data
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 12 Months Ended March 31, 2023 ($ millions, except percentages) 1 Sales Q2 23 Q1 23 Q4 22 Q3 22 Total Q2 22 Life Sciences $ 240 $ 207 $ 213 $ 228 $ 888 $ 204 Personal Care 167 138 188 172 665 172 Specialty Additiv es 161
Slide 25: Segment Components of Key Items, Three Months Ended March 31, 2023
Ashland Inc. and Consolidated Subsidiaries : Segment Components of Key Items for Applicable Income Statement Captions In millions - preliminary and unaudited) ($ millions) Three Months Ended March 31, 2023 Personal Specialty Unallocated Life Sciences Care Additives Intermediates & Other Total OPERAT
Slide 26: Segment Components of Key Items, Three Months Ended March 31, 2022
Ashland Inc. and Consolidated Subsidiaries : Segment Components of Key Items for Applicable Income Statement Captions In millions - preliminary and unaudited) Three Months Ended March 31, 2022 ($ millions) Personal Specialty Unallocated Life Sciences Care Additives Intermediates & Other Total OPERAT
Slide 27: Reconciliation of Non-GAAP Data – 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 28: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Ashland Inc. Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended March 31, 2023 and 2022 ($ millions)
Slide 29: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Ashland Inc. Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended March 31, 2023 and 2022 ($ millions)
Slide 30: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Specialties Additives and Intermediates Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended March 31, 2023 and 2022 ($ millions)
Slide 31: Reconciliation of Non-GAAP Data – Adjusted Income from Continuing Operations
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Adjusted Income from Continuing Operations ($ millions)
Slide 32: Reconciliation of Non-GAAP Data – Adjusted Diluted EPS from Continuing Operations
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Adjusted Diluted EPS from Continuing Operations
Slide 33: Ashland always solving
oT ct Ashland always solving