Ashland Inc. · NYSE:ASH
Ashland — Ashland Global Holdings — Q2 2018 Earnings Presentation
24 slides from Ashland's earnings presentation, May 1, 2018
Slide 1: Second-Quarter Fiscal 2018 Earnings
Second-Quarter Fiscal 2018 Earnings May 1, 2018 / efficacy usability allure integrity profitability Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements This news release 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: Second Quarter Summary
Second Quarter Summary a Ashland always solving
Slide 4: Ashland Global Holdings Inc. Adjusted Results Summary
Ashland Global Holdings Inc. Adjusted Results Summary1 Highlights Sales up 21% including 9 ppts from acquisitions/divestitures and 5 ppts from currency Reported net earnings of $73 million; earnings from continuing operations of $66 million or $1.04 per diluted share2 EBITDA increased to $179 millio
Slide 5: Specialty Ingredients Adjusted Results Summary
Specialty Ingredients Adjusted Results Summary1 Highlights Sales up 19% including 10 ppts from acquisitions/divestitures and 4 ppts from currency EBITDA increased to $153 million EBITDA margin increased to 23.7% Key Drivers Top-line growth from volume/mix gains driven by strong volumes and focus on
Slide 6: Specialty Ingredients Sales Trends by End Market
Specialty Ingredients Sales Trends by End Market End Market Commentary Robust growth across all end markets Continued strong growth in Personal Care biofunctional ingredients Accelerating cellulosic excipient growth plus customer share gains in Pharma; results enhanced by some favorable order patter
Slide 7: Composites Adjusted Results Summary
Composites Adjusted Results Summary1 Ashland‘s earnings release dated May 1, 2018, available on Ashland's website at http://investor.ashland.com, reconciles adjusted amounts to amounts reported under GAAP. Highlights Sales up 28% including 11 ppts from acquisitions and 5 ppts from currency EBITDA up
Slide 8: Intermediates & Solvents Adjusted Results Summary
Intermediates & Solvents Adjusted Results Summary1 Ashland‘s earnings release dated May 1, 2018, available on Ashland's website at http://investor.ashland.com, reconciles adjusted amounts to amounts reported under GAAP. Highlights Sales up 18% EBITDA increased to $12 million EBITDA margin increased
Slide 9: Outlook Summary
Outlook Summary <fas hland always solvit
Slide 10: New Cost Out & Organizational Effectiveness Initiative
Ashland Global Holdings Inc. New Cost Out & Organizational Effectiveness Initiative PLAN Leverage expected divestiture of Composites and Marl BDO facility as a catalyst to create a leaner, more competitive organization with: Improved cost structure, streamlined decision making and more customer-cent
Slide 11: Fiscal Year 2018 Outlook
Ashland Global Holdings Inc. Fiscal Year 2018 Outlook Definition of free cash flow: operating cash flow less capital expenditures and other items Ashland has deemed non-operational (if applicable). Highlights Increasing adjusted EPS to $3.30 - $3.50 reflecting improved segment outlooks and a lower e
Slide 12: Third-Quarter Fiscal 2018 Outlook
Highlights Expect Q3 adjusted EPS in the range of $0.95 - $1.05 vs. $0.83 prior year Outlook assumes effective tax rate of 17% vs. 11% prior year Key Drivers Strong year-over-year sales and EBITDA growth in Specialty Ingredients Asset utilization program contributing to YOY growth Composites and I&S
Slide 13: Appendix A: Key Items and Balance Sheet
Appendix A: Key Items and Balance Sheet
Slide 14: Second Fiscal Quarter – Continuing Operations Key Items Affecting Income
Second Fiscal Quarter – Continuing Operations Key Items Affecting Income
Slide 15: Liquidity and Net Debt
Liquidity and Net Debt ($ in millions)
Slide 16: Appendix B: Business Profiles
Appendix B: Business Profiles 12 Months Ended March 31, 2018
Slide 17: Corporate Profile
Corporate Profile By business unit By geography 1For 12 months ended March 31, 2018. 2Ashland includes only U.S. and Canada in its North America designation. North America2 40% Asia Pacific 17% Latin America/ Other - 8% Europe 35% Specialty Ingredients 67% Intermediates and Solvents 8% Composites 25
Slide 18: Corporate Profile
Corporate Profile For 12 months ended March 31, 2018. See Appendix C for reconciliation to amounts reported under GAAP. NYSE Ticker Symbol: ASH Total Employees: ~6,500 Outside North America ~50% Number of Countries in Which Ashland Has Sales: More than 100 Specialty Ingredients 78% Intermediates and
Slide 19: Specialty Ingredients Sales by Market
Specialty Ingredients Sales by Market2 For 12 Months Ended March 31, 2018 Sales: $2.4 billion Adjusted EBITDA: $530 million1 Adjusted EBITDA Margin: 22.2%1 Sales by Product Cellulosics 34% PVP 17% Adhesives 14% North America 41% Asia Pacific 18% Europe 32% Latin America/ Other – 9% Actives – 6% Viny
Slide 20: Composites Sales by Geography
Composites Sales by Geography For 12 Months Ended March 31, 2018 Sales: $884 million Adjusted EBITDA: $98 million1 Adjusted EBITDA Margin: 11.1%1 Sales by Product UPR/VER2 84% Gel coats and other 16% Construction: Residential 18% Marine 22% Construction: Industrial 40% Sales by Market North America
Slide 21: Intermediates and Solvents Sales by Geography
Intermediates and Solvents Sales by Geography For 12 Months Ended March 31, 2018 Sales: $297 million Adjusted EBITDA: $48 million1 Adjusted EBITDA Margin: 16.2%1 Sales by Product Butanediol 41% Derivatives 59% General Industrial 27% Plastics/ Polymers 34% Sales by Application North America 22% Asia
Slide 22: Appendix C: Non-GAAP Reconciliation
Appendix C: Non-GAAP Reconciliation1 Although Ashland provides forward-looking guidance for adjusted EBITDA, free cash flow and adjusted diluted earnings per share, Ashland is not reaffirming or providing forward-looking guidance for U.S. GAAP-reported financial measures or a reconciliation of forwa
Slide 23: Reconciliation of Non-GAAP Data for 12 Months Ended March 31, 2018
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 12 Months Ended March 31, 2018 North America2 __% Asia Pacific __% Latin America/ Other - _% Europe __% Ashland Specialty Ingredients __% Ashland Performance Materials __% Valvoline __% 1Quarterly totals m
Slide 24: Trademark notice
® Registered trademark, Ashland or its subsidiaries, registered in various countries ™ Trademark, Ashland or its subsidiaries, registered in various countries
Ashland Global Holdings — Q2 2018 Earnings Presentation on 6ix