Slide 1: Earnings conference call first quarter fiscal 2024
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 o QI performance summary o Ql] financial results o outlook A o update on strategic priorities ; > © closing comments / spegialty additives o Q&A 7 3 always solving
Slide 4: Q1 performance summary
Guillermo Novo, Chair & CEO Q]1 performance summary <t Ashland always solving
Slide 5: Q1 sales, adjusted EBITDA and adjusted EPS
sales adjusted EBITDA adjusted EBITDA % adjusted EPS2 (10) % (35) % (580) bps (54) % $473 MM $70 MM 14.8 % $0.45 challenged unit sustained pricing in core lower sales and production costs; 1.2 million shares offset by lower sales production volume and disciplined pricing with repurchased during the
Slide 6: Sales impacted by weaker demand; margins by lower production
sales1 impacted by weaker demand with Adj. EBITDA margins impacted by lower production 30% -3% -7% 24% -10% -15% 17% 15% 5% -39% 2 2
Slide 7: Q1 financial results
Kevin Willis, CFO Q1 financial results <t Ashland always solving
Slide 8: Fiscal first quarter adjusted results
fiscal-first quarter adjusted results! operating results summary Ashland (SUS in millions, except percentages) Ql FY24 Ql FY23 sales $473 (10) 9 gross profit margin 25.2% 31.4% (620) bps SG&A / R&D costs / intangible amortization $103 $116 (11) operating income $16 $50 EBITDA $70 $108 (35) % EBITDA
Slide 9: Business unit reviews
life sciences personal care business unit reviews specialty additives intermediates <t Ashland always solving
Slide 10: Life sciences
o o o o o -HSD +DD -DD pharma nutraceuticals nutrition & other Q1 FY24 year-over-year sales (HSD/MSD/LSD = high, mid or low single-digit %. DD = double-digit %)
Slide 11: Personal care
o o o o o -HSD +MSD -DD +LSD skin care hair care oral care household Q1 FY24 year-over-year sales (HSD/MSD/LSD = high, mid or low single-digit %. DD = double-digit %)
Slide 12: Specialty additives
o o o o u -DD -DD coatings construction, energy, performance spec. Q1 FY24 year-over-year sales (HSD/MSD/LSD = high, mid or low single-digit %. DD = double-digit %)
Slide 13: Intermediates
o o u -DD -DD merchant captive Q1 FY24 year-over-year sales (HSD/MSD/LSD = high, mid or low single-digit %. DD = double-digit %)
Slide 14: Strong balance sheet
strong balance sheet robust financial position with increased flexibility share repurchases under $1 billion authorization proactive inventory management and free cash ° new $100 million trading plan completed in December flow generation ° repurchased 1.2 million shares during the first quarter ° re
Slide 15: Outlook
Kevin Willis, CFO outlook <t Ashland always solving
Slide 16: Execute: four primary portfolio actions
execute: four primary portfolio actions strengthen our base and drive performance target to sign and close within FY24 divest nutraceuticals business action underway to wind-down U.S. optimize & consolidate CMC business production in 2Q-3Q FY24 / shift select SKUs advanced planning with implementati
Slide 17: Execute: a more durable and resilient portfolio
execute: a more durable and resilient portfolio impact of our actions: stronger performance 17 adj. EBITDA margin returns? (RONA) network? utilization rate working capital impact! » N PN » N >» 200 - 250 bps expansion 150 - 200 bps increase 10-15% increase ~10% overall reduction o modest reduction i
Slide 18: Fiscal Q2 and full-year outlook
fiscal Q2 and full-year outlook forward looking insights ° 18 converging sales volume and customer end-market demand forecasting sequential Q2 recovery with second-half momentum normalized order lead times deflationary raw materials to partially offset softer pricing producing to demand with an abso
Slide 19: Update on strategic priorities
Guillermo Novo, Chair & CEO update on strategic priorities <t Ashland always solving
Slide 20: Execute, globalize, innovate, acquire
execute | globalize | innovate acquire © expand leading o high-value product | o existing technology | o drug delivery technology segments in key platforms technologies capacit eographies — ae o new technology o natural & biotech o exit select product o expand big3 in platforms technologies / busine
Slide 21: Globalize: expanding high-margin businesses
globalize: expanding high-margin businesses pharma personal care injectables 21 ™ growing pipeline for viatel™ & vialose™ (both, value & number of programs) recent launch (viatel™ ultrapure) gaining adoption with commercial sales new customer wins enabling share gain in Latin America, Europe and U.S
Slide 22: Innovate: advancing scalable growth
innovate: advancing scalable growth select updates transformed super PH neutralizer vegetable oils wetting agents introduced 3 products in launched 3 easy-wet™ products | customer evaluations in-process personal care (skin, sun & oral ! with first commercial sales in ! with multiple samples care) -
Slide 23: Our approach
our approach build resilience focus on building clarity vs. certainty o act on what we can control o develop plans assuming the worse case o be positioned to capitalize on upside * remain on strategy * maintain operating and capital allocation discipline * take action to maximize fiscal year 2024 pe
Slide 24: Thank you, Q&A
thank you Q&A *<f Ashland always solving 24
Slide 25: Appendix A: adjusted results
appendix A: adjusted results summary and balance sheet «<f Ashland always solving
Slide 26: 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 27: Q1 business unit consolidation
Q1 business Unit Consolidation! mp specialty itercompany unallocated SI ano i eliminations? ‘and other? gross profit $119 EBITDA ($16) 1 All figures are presented on an adjusted basis except Sales. Appendix B reconciles adjusted amounts to amounts reported under GAAP, including reconciliations of ne
Slide 28: Debt, expiration and interest rates
Moody’s 12/31/23 ($US in millions) expiration interest rate S&P rating rating balance
Slide 29: 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 30: Reconciliation of Non-GAAP Data
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for the 12 Months Ended December 31, 2023 1 Quarterly totals may not add to annual amounts due to rounding. Calculation of adjusted EBITDA for each period presented have been reconciled within certain financial filings with t
Slide 31: Segment key items, 3 months ended December 31, 2023
Ashland Inc. and Consolidated Subsidiaries . Segment Components of Key Items for Applicable Income Statement Captions — for the 3 months ended December 31, 2023 In millions - preliminary and unaudited {$ millions) ‘Three Months Ended December 31, 2023 Personal Specialty Unallocated life Sciences Car
Slide 32: Segment key items, 3 months ended December 31, 2022
Ashland Inc. and Consolidated Subsidiaries Segment Components of Key Items for Applicable Income Statement Captions — for the 3 months ended December 31, 2022 In millions - preliminary and unaudited ($ millions) Three Months Ended December 31, 2022 Personal Specialty Unallocated Life Sciences Care A
Slide 33: 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 34: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Ashland Inc. Reconciliation of Non-GAAP Data – Adjusted EBITDA for the 3 Months Ended December 31, 2023 and 2022 ($ millions)
Slide 35: Adjusted EBITDA – Life Sciences and Personal Care
Life Sciences and Personal Care Reconciliation of Non-GAAP Data – Adjusted EBITDA for the 3 Months Ended December 31, 2023 and 2022 ($ millions) (see slides 31 and 32)
Slide 36: Adjusted EBITDA – Specialty Additives and Intermediates
Specialties Additives and Intermediates Reconciliation of Non-GAAP Data – Adjusted EBITDA for the 3 Months Ended December 31, 2023 and 2022 ($ millions) (see slides 31 and 32)
Slide 37: Adjusted Income from Continuing Operations
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Adjusted Income from Continuing Operations ($ millions) (a) (b) (c)
Slide 38: Adjusted Diluted EPS from Continuing Operations
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Adjusted Diluted EPS from Continuing Operations (a) (b) (c)
Slide 39: OT <t Ashland
OT <t Ashland always solving