Ashland Inc. · NYSE:ASH
Ashland — Q2 2025 Earnings Presentation
40 slides from Ashland's earnings presentation, May 1, 2025
Slide 1: Earnings conference call second quarter fiscal 2025
earnings conference call second quarter fiscal 2025 — May 1, 2025
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 word
Slide 3: Agenda
agenda — o Q2 performance summary o Q2 financial results o business unit reviews o strategic priorities o tariffs overview & mitigation o outlook o Q&A 3
Slide 4: Q2 performance summary
Guillermo Novo, Chair and CEO Q2 performance summary 4
Slide 5: Q2 highlights
Q2 highlights1 — sales adjusted EBITDA adjusted EBITDA % adjusted EPS2 (17) % (14) % +60 bps (22) % $479 MM $108 MM 22.5 % $0.99 (-) portfolio optimization, (-) portfolio optimization, (+) portfolio optimization; (-) reduced income from lower carry-over pricing lower carry-over pricing, sequential r
Slide 6: Peak optimization: foundation for profitable growth
peak optimization: foundation for profitable growth — peak portfolio optimization impact delivering strong margin1 expansion amid softer demand sales comparisons versus prior-year quarter comparisons versus prior-year quarter sales comparisons versus reset1 prior-year quarter 33% comparisons versus
Slide 7: Q2 financial results and business unit reviews
Q2 financial results and business unit reviews 7
Slide 8: Fiscal-second quarter adjusted results
fiscal-second quarter adjusted results1 — Ashland adjusted results summary1 reset results2 ($US in millions, except percentages) Q2 FY25 Q2 FY24 change Q2 FY24 change sales $479 $575 (17) % $508 (5) % gross profit margin 34.7 % 32.9 % +180 bps SG&A / R&D costs / intangible amortization $106 $117 (9)
Slide 9: Life sciences
life sciences — highlights adjusted results summary1 reset results2 ($US in millions, o broad sequential pharma Q2 FY25 Q2 FY24 change Q2 FY24 change except percentages) market recovery & share gains; across most regions & sales $172 $222 (23) % $180 (4) % technologies gross profit $70 $83 (16) % o
Slide 10: Intermediates
intermediates — highlights adjusted results summary1 ($US in millions, except o captive: lower pricing & percentages) Q2 FY25 Q2 FY24 change stable volume sales $37 $40 (8) % o merchant: broadly lower pricing & higher volume gross profit $1 $11 (91) % o lower production volumes gross profit margin 2
Slide 11: Personal care
personal care — highlights adjusted results summary1 reset results2 ($US in millions, o ongoing soft demand in Q2 FY25 Q2 FY24 change Q2 FY24 change except percentages) Europe sales $146 $169 (14) % $154 (5) % o LSD organic volume growth in core skin care & hair care gross profit $64 $64 (-) % o cus
Slide 12: Specialty additives
specialty additives — highlights adjusted results summary1 reset results2 ($US in millions, o anticipated China coatings Q2 FY25 Q2 FY24 Change Q2 FY24 change except percentages) volume declines & continued highly competitive intensity in sales $134 $157 (15) % $147 (9) % Middle East, Africa & India
Slide 13: Strategic priorities and outlook
Guillermo Novo, Chair and CEO strategic priorities and outlook 13
Slide 14: Execute: drive near-term performance
execute execute: drive near-term performance ~$90 MM EBITDA impact1 — several high-impact execution initiatives underway to deliver $90 million in savings through FY27 FY25 target key updates 1 divest avoca business line focus Ashland strategy; complete pharmachem exit complete closed on March 14
Slide 15: Globalize & innovate: YTD financial progress
globalize & innovate: YTD financial progress — ~$100 MM on track ~$100 MM on track revenue impact1 revenue impact1 globalize strong fundamentals innovate good start across buffer year-over-year decline and business units; FY25 on track regional / customer weakness target progress target progress +$2
Slide 16: Tariff overview & mitigation plans
tariff overview1 & mitigation plans — agile operations for tariff response • low direct raw material exposure: tariff response plan • localized sourcing mitigates US/China tariff impact • inventory on hand generally covers Q3 • anticipate $3 to $5MM 2H headwind1, $5 - $7MM annually • relative compet
Slide 17: Revising FY25 outlook
revising FY25 outlook — forward looking insights key market factors • tariff impact & uncertainty; weakening •risks & opportunities consumer sentiment, particularly coatings • European & Chinese economic • stable European market (no recovery yet) pharma recovery • modest FY25 intermediates recovery
Slide 18: Our strategic priorities
our strategic priorities — global trade execute globalize innovate invest business unit focus enterprise focus 18
Slide 19: Upcoming innovation day event
upcoming innovation day event — showcasing enhanced capabilities & expanded applications of our technology platforms topics structure o innovation focus o CEO, CTO and BU leadership remarks o in-depth review of latest technical o moderated Q&A sessions developments o lab tour with platform applicati
Slide 20: Closing comments
Guillermo Novo, Chair and CEO closing comments 20
Slide 21: Summary
summary —focused portfolio: resilient markets, differentiated products, scalable growth leadership in high-quality consumer markets execute ~12% innovate stable, high-margin growth driven by mission-critical additives EBITDA CAGR globalize invest scalable growth platforms & sustainable competitive a
Slide 22: Thank you / Q&A
thank you — Q&A 22
Slide 23: Appendix A: adjusted results summary and balance sheet
appendix A: adjusted results summary and balance sheet 23
Slide 24: Sales reset detail
sales reset detail — sales life personal specialty intermediates total ($US in millions) sciences care additives FY 2024 reported $810 $634 $572 $97 $2,113 portfolio reset impact1 (130) (10) (24) -- (164) FY 2024 portfolio reset 680 624 548 97 1,949 avoca exit -- (55) -- -- (55) FY 2024 portfolio re
Slide 25: Adjusted EBITDA reset detail
adjusted EBITDA reset detail — adj. EBITDA life personal specialty Intermediates unallocated total ($US in millions) sciences care additives FY 2024 reported $230 $164 $99 $42 $(76) $459 portfolio reset impact1 (24) (2) (4) -- -- (30) FY 2024 portfolio reset 206 162 95 42 (76) 429 avoca exit -- (15)
Slide 26: Q2 adjusted results summary
Q2 adjusted results summary1 — ($US in millions, except percentages and per share data) Q2 FY25 Q2 FY24 change sales $479 $575 (17) % gross profit $166 $189 (12) % gross profit margin 34.7 % 32.9 % +180 bps SG&A / R&D costs / intangible amort. $106 $117 (9) % operating income $60 $72 (17) % deprecia
Slide 27: Q2 business unit consolidation
Q2 business unit consolidation1 — specialty intercompany unallocated ($US in millions, except percentages) life sciences personal care Intermediates Ashland additives eliminations2 and other3 sales $172 $146 $134 $37 ($10) - $479 gross profit $70 $64 $31 $1 - - $166 gross profit margin 40.7 % 43.8 %
Slide 28: Liquidity and net debt
liquidity and net debt — ($US in millions) expiration interest rate Moody’s rating S&P rating 3/31/25 balance cash $168 revolver availability 546 cash and revolver availability1 $714 US and foreign A/R sales program1 - debt 2.00% notes (EUR) Jan. 2028 2.000% Ba1 BB+ $541 3.375% notes Sept. 2031 3.37
Slide 29: Strong balance sheet & capital allocation strategy
strong balance sheet & capital allocation strategy — strong balance sheet and balanced capital allocation annual dividend3 increase every year since 2009 strong balance sheet1 o cash and liquidity available of ~$0.7 billion 1.80 o net debt of $1,218 million; net leverage of 2.8x $1.60 $1.62 o no lon
Slide 30: Appendix B: non-GAAP reconciliation
appendix B: non-GAAP reconciliation1 1 Although Ashland provides forward looking guidance for adjusted EBITDA in this presentation, Ashland is not reaffirming or providing forward-looking guidance for U.S. GAAP reported financial measures or a reconciliation of forward-looking non-GAAP financial mea
Slide 31: Reconciliation of Non-GAAP Data
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for the 12 Months Ended March 31, 2025 — ($ millions, except pecentages) Sales 1 Q2 25 Q1 25 Q4 24 Q3 24 Total Q2 24 Life Sciences 172 134 192 195 693 $ 222 Personal Care 146 134 162 175 617 169 Specialty Additives 134 115 14
Slide 32: Segment Components of Key Items – 3 months ended March 31, 2025
Ashland Inc. and Consolidated Subsidiaries Segment Components of Key Items for Applicable Income Statement Captions – for the 3 months ended March 31, 2025 — In millions - preliminary and unaudited ($ millions) Life Sciences Personal Care Three Months Ended March 31, 2025 Specialty Additives Interme
Slide 33: Segment Components of Key Items – 3 months ended March 31, 2024
Ashland Inc. and Consolidated Subsidiaries Segment Components of Key Items for Applicable Income Statement Captions – for the 3 months ended March 31, 2024 — In millions - preliminary and unaudited ($ millions) Three Months Ended March 31, 2024 Specialty Unallocated & Life Sciences Personal Care Add
Slide 34: 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 — for the 3 and 6 Months Ended March 31, 2025 and 2024 Three months ended Six months ended March 31 March 31 Free cash flows 2025 2024 2025 2024 ($ millions) Total cash flows pro
Slide 35: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Ashland Inc. Reconciliation of Non-GAAP Data – Adjusted EBITDA for the 3 Months Ended March 31, 2025 and 2024 — ($ millions) Three months ended March 31 Adjusted EBITDA - Ashland Inc. 2025 2024 Net income $ 31 $ 120 Income tax expense (benefit) 9 (104) Net interest and other expense 11 2 Depreciatio
Slide 36: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Life Sciences and Personal Care Reconciliation of Non-GAAP Data – Adjusted EBITDA for the 3 Months Ended March 31, 2025 and 2024 — ($ millions) Three months ended March 31 2025 2024 Adjusted EBITDA - Life Sciences Operating income $ 28 $ 50 Add: Depreciation and amortization(a) 13 16 Operating key i
Slide 37: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Specialties Additives and Intermediates Reconciliation of Non-GAAP Data – Adjusted EBITDA for the 3 Months Ended March 31, 2025 and 2024 — ($ millions) Three months ended 2025 March 31 2024 Adjusted EBITDA - Specialty Additives Operating income (loss) $ 7 $ (18) Add: Depreciation and amortization(a)
Slide 38: 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 — Three months ended Six months ended for the 3 and 6 Months Ended March 31, 2025 and 2024 March 31 March 31 2025 2024 2025 2024 ($ millions) Income (loss) from continuing operatio
Slide 39: 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 — Three months ended Six months ended for the 3 and 6 Months Ended March 31, 2025 and 2024 March 31 March 31 2025 2024 2025 2024 Diluted EPS from continuing operations (as rep
Slide 40: Ashland: always solving
oT <t Ashland always solving