Slide 1: Earnings conference call fourth-quarter fiscal 2022
earnings conference call fourth-quarter fiscal 2022 November 8, 2022 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: Q4 performance summary
Q4 performance summary Q4 financial results fiscal year 2022 review advancing our strategy outlook closing comments Q&A XT Ashland always solving
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Slide 5: Q4 sales and adjusted EBITDA highlights
sales adjusted EBITDA adjusted EBITDA % adjusted EPS2 +7 % (1) % (190) bps +20 % $631 MM $147 MM 23.3 % $1.46 inflation recovery and sustained quality broad-based sales mix offset by planned margins offset by strong returns to growth turnaround costs and planned turnaround shareholders negative FX i
Slide 6: Strong sales growth with strong Adjusted EBITDA margins
strong sales1 growth with strong Adjusted EBITDA margins 2 2
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Slide 8: Fiscal-fourth quarter adjusted results
fiscal-fourth quarter adjusted results! excellent operating performance Ashland sales $631 $591 +7 % gross profit margin 33.1% 33.2% (10) bps SG&A / R&D costs / intangible amortization $123 $113 +9 % operating income $87 $85 +2% EBITDA $147 $149 (1) % EBITDA margin 23.3 % 25.2% (190) bps EPS (exclud
Slide 9: Life Sciences Q4 year-over-year sales
o o o o o o -DD +HSD +DD pharma nutraceuticals nutrition & other Q4 FY22 year-over-year sales (HSD/MSD/LSD = high, mid or low single-digit %. DD = double-digit %)
Slide 10: Personal Care Q4 year-over-year sales
o o o o o -MSD +LSD +HSD +HSD skin care hair care oral care household Q4 FY22 year-over-year sales (HSD/MSD/LSD = high, mid or low single-digit %. DD = double-digit %)
Slide 11: Specialty Additives Q4 year-over-year sales
o o o o o u +LSD +MSD coatings construction, energy, performance spec. Q4 FY22 year-over-year sales (HSD/MSD/LSD = high, mid or low single-digit %. DD = double-digit %)
Slide 12: Intermediates Q4 year-over-year sales
o o o -MSD u +DD merchant captive Q4 FY22 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 completed share repurchase and new authorization in fiscal year 2022 ° $650 million of share repurchases (~6.75 million shares) since August 2021 ° $500 million evergreen share repurchase authorization approved May 2022 strong
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Slide 15: Fiscal year 2022 review
fiscal year 2022 review performance drivers o strong end-market demand across segments © capacity constraints drove product mix improvements © supply-chain issues remain challenging, though improving o strong price realization offsetting cost inflation o robust plant loading and operating discipline
Slide 16: Sales growth
sales growth o $2,391 $737 $815 $678 $655 $719 $2,111 o $592 $256 $178 o life sciences personal care specialty additives intermediates Ashland o
Slide 17: Adjusted EBITDA growth
adjusted EBITDA growth $495 $590 o $218 $195 $186 $185 $161 $158 $48 $100 o life sciences personal care specialty additives intermediates Ashland o adjusted EBITDA margin expansion o 39.1% 26.5% 26.7% 27.2% 27.4% 27.0% 24.1% 25.7% 23.4% 24.7% o life sciences personal care specialty additives interme
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Slide 19: Operating resilience, strategic focus, innovation and growth, capital allocation
operating resilience strategic focus innovation & growth capital allocation
Slide 20: Materiality matrix
materiality matrix responsible consumption ‘and production Inclusion & diversity, product design and litecycle management Innovation and technology employee engagement MA b # s \. explain £ | = Gees $2.9) values product and service safety and quality business model resilience tronsporency *TAshland
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Slide 22: Operating environment and Ashland
operating environment and Ashland external environment 22 global recessionary trends continued inflation (energy, labor, specific raw materials, etc.) supply-chain reliability improving European supply challenges pricing arbitrage higher cost of capital currency headwinds deceleration in M&A activit
Slide 23: Outlook
outlook full-year guidance (excluding major risks and uncertainties) forward looking insights ° 23 core markets remain resilient in recessionary environment limited volume growth in capacity constrained product lines until 2024 continued pricing and mix carryover no changes to underlying operating p
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Slide 25: Ashland
Ashland focused additives and specialty ingredients company leadership positions in high-quality markets and with exciting profitable growth opportunities ° flexible, agile strong technology, commercial and ° consistent execution operations capabilities . global infrastructure ° solid growth compell
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Slide 27: Appendix A: adjusted results
appendix A: adjusted results summary and balance sheet «<f Ashland always solving
Slide 28: 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 29: Q4 business unit consolidation
Q4 business Unit consolidation! mp specialty itercompany unallocated SI ano i eliminations? ‘and other? gross profit $209 EBITDA ($26) $147 1 All figures are presented on an adjusted basis except Sales. Appendix B reconciles adjusted amounts to amounts reported under GAAP, including reconciliations
Slide 30: Debt expiration, interest rates and ratings
Moody’s 9/30/22 ($US in millions) expiration interest rate S&P rating rating balance
Slide 31: Appendix B: non-GAAP reconciliation
appendix B: non-GAAP reconciliation! 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 measu
Slide 32: Reconciliation of Non-GAAP Data
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 12 Months Ended September 30, 2022 ($ millions, except percentages) Sales1 Q4 22 Q3 22 Q2 22 Q1 22 Total Q4 21 Life Sciences $ 213 $ 228 $ 204 $ 170 $ 815 $ 189 Personal Care 188 172 172 147 679 183 Specialty Additiv es 1
Slide 33: Segment components of key items, 3 months ended September 30, 2022
Ashland Inc. and Consolidated Subsidiaries Segment Components of Key Items for Applicable lacame Statement Captions for 3 Months Ended September 30, 2022 ($ millions) Three Months Ended September 30, 2022 Personal Specialty intermediate _ Unallocated Life Sciences Care Additives s & Other Total OPER
Slide 34: Segment components of key items, 3 months ended September 30, 2021
Ashland Inc. and Consolidated Subsidiaries Segment Components of Key Items for Applicable Income Statement Captions for3 Months Ended September 30, 2021 ($ millions) OPERATING INCOME (LOSS) Operating key items: Inventory adjustments Environmental reserve adjustments Asset impairments All other opera
Slide 35: 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 36: Adjusted EBITDA, 12 months
Ashland Inc. Reconciliation of Non-GAAP Data – Adjusted EBITDA for 12 Months Ended September 30, 2022 and 2021 ($ millions)
Slide 37: Adjusted EBITDA, 3 months
Ashland Inc. Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended September 30, 2022 and 2021 ($ millions)
Slide 38: Specialties Additives and Intermediates Adjusted EBITDA
Specialties Additives and Intermediates Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended September 30, 2022 and 2021 ($ millions)
Slide 39: Adjusted Income from Continuing Operations
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Adjusted Income from Continuing Operations ($ millions) (1) (2) - - (3)
Slide 40: Adjusted Diluted EPS from Continuing Operations
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Adjusted Diluted EPS from Continuing Operations (1) (2) - - (3)
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