Slide 1: Earnings conference call second-quarter fiscal 2022
earnings conference call second-quarter fiscal 2022 / efficacy usability allure integrity profitability
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
o Q2 performance summary o Q2 financial results o advancing our strategy o outlook o closing comments o Q&A 3
Slide 4: Q2 performance summary
Q2 performance summary <f Ashland always solving
Slide 5: Strong, resilient performance
strong, resilient performance 5
Slide 6: Outstanding performance
1 outstanding performance sales adjusted EBITDA adjusted EBITDA % adjusted EPS2 +19 % +41 % +420 bps +79 % $604 MM $163 MM 27.0 % $1.50 strong price leadership position in broad-based sales strong returns to realization and mix high-value end growth shareholders improvement markets 6
Slide 7: Growth across all business units
growth across all business units strong sales1 growth with adjusted EBITDA1 significantly higher 329% 78% 41% 26% 29% 19% 20% 15% 16% 10% life sciences personal care specialty intermediates 2 Ashland life sciences personal care specialty intermediates Ashland additives additives Q2-2022 Sales 8% Mer
Slide 8: Q2 financial results
Q2 financial results <f Ashland always solving
Slide 9: Q2 FY22 consolidated sales and results
($US in millions, except percentages) Q2 FY22 Q2 FY21 change sales $604 $509 +19 % gross profit margin 36.4 % 31.4 % +500 bps SG&A / R&D costs / intangible amortization $119 $103 +16 % operating income $101 $57 +77 % EBITDA $163 $116 +41 % EBITDA margin 27.0 % 22.8 % +420 bps EPS (excluding acquisit
Slide 10: Life Sciences results
($US in millions, except percentages) Q2 FY22 Q2 FY21 change sales $204 $185 +10 % gross profit $73 $64 +14 % gross profit margin 35.8 % 34.6 % +120 bps operating Income $43 $35 +23 % EBITDA $58 $50 +16 % EBITDA margin 28.4 % 27.0 % +140 bps o o o o +DD -MSD -LSD pharma nutraceuticals nutrition & ot
Slide 11: Personal Care results
($US in millions, except percentages) Q2 FY22 Q2 FY21 change sales $172 $137 +26 % gross profit $67 $49 +37 % gross profit margin 39.0 % 35.8 % +320 bps operating Income $28 $19 +47 % EBITDA $49 $38 +29 % EBITDA margin 28.5 % 27.7 % +80 bps o o o -LSD +MSD +DD +DD skin care hair care oral care house
Slide 12: Specialty Additives results
($US in millions, except percentages) Q2 FY22 Q2 FY21 change sales $182 $158 +15 % gross profit $51 $42 +21% gross profit margin 28.0 % 26.6 % +140 bps operating Income $26 $19 +37 % EBITDA $48 $40 +20 % EBITDA margin 26.4 % 25.3 % +110 bps o o o +MSD +DD coatings construction, energy, perf spec Q2
Slide 13: Intermediates results
($US in millions, except percentages) Q2 FY22 Q2 FY21 change sales $66 $37 +78 % gross profit $29 $6 +383 % gross profit margin 43.9 % 16.2 % +2,770 bps operating Income $27 $3 +800 % EBITDA $30 $7 +329 % EBITDA margin 45.5 % 18.9 % +2,660 bps o o o +DD +DD merchant captive Q2 FY22 year-over-year sa
Slide 14: Performance Adhesives sale closed on February 28
Performance Adhesives sale closed on February 28 o gross proceeds of $1.65 billion; net proceeds1 of $1.2 – $1.3 billion use of proceeds o ~$625 million of debt repayment since December 2021 o $200 million open-market share repurchase • incremental to $450 MM accelerated share repurchase completed o
Slide 15: Advancing our strategy
advancing our strategy <f Ashland always solving
Slide 16: Operating resilience, strategic focus, innovation & growth, capital allocation
operating resilience strategic focus innovation & growth capital allocation 16
Slide 17: ESG progress
ESG progress • • • • • ™ • • • • • • • • 17
Slide 18: ESG in action
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Slide 19: Increased innovation speed & impact
increased innovation speed & impact # of new products launched o o o FY20 FY21 FY22 Q1 Q2 Q3 Q4 o year 5 revenue potential ($MM) o o FY20 FY21 FY22 Q1 Q2 Q3 Q4 19
Slide 20: Recent new product introductions
recent new product introductions • • • • • • • • • • • • • • • • • • • • • 20 20
Slide 21: Priorities
priorities il 2 profitable growth margin expansion enhanced FCF - rebalanced our mmovarion portfolio accelerate innovation growth - prioritize organic growth CAPEX . intensifying ESG ‘nillives - value pricing : - improved working capital efficiency - miximprovemen - strategically aligned M&A - bolt-
Slide 22: Outlook
outlook <f Ashland always solving
Slide 23: Current macro trends
current macro trends tailwinds ° revenue . pricing a major driver . stable demand in life sciences, personal care, specialty additives and intermediates . capacity constraints support mix improvement ° significant demand backlog allows for shifting supply of key products across segments . continuing
Slide 24: Critical performance variables
critical performance variables revenue growth drivers o end-market demand o production stability o inventory build o supply-chain reliability demand remains strong, supply will drive revenue 24 % profitability drivers o miximprovement | o productivity o cost inflation energy inflation driving broad
Slide 25: Outlook: full-year guidance maintained
outlook full-year guidance maintained forward looking insights ° 25 robust demand . strong order book . low inventory levels pricing to address cost inflation no changes to underlying operating performance intermediates plant turnaround shifted from Q4 to Q3 current model forecasts adj. EBITDA above
Slide 26: Closing comments
closing comments <f Ashland always solving
Slide 27: Ashland
Ashland focused additives and specialty ingredients company ° flexible, agile © consistent execution ° solid growth o high margins o strong free cash flow 27 KAKA K KKK leadership positions in high-quality markets and with exciting profitable growth opportunities strong technology, commercial and op
Slide 28: Thank you and Q&A
thank you and Q&A <f Ashland always solving
Slide 29: Appendix A: adjusted results summary and balance sheet
appendix A: adjusted results summary and balance sheet <f Ashland always solving
Slide 30: Adjusted results summary
adjusted results summary1 ($US in millions, except percentages and Q2 FY22 Q2 FY21 change per share data) sales $604 $509 +19 % gross profit $220 $160 +38 % gross profit margin 36.4 % 31.4 % +500 bps SG&A / R&D costs / intangible amort. $119 $103 +16 % Photo operating income $101 $57 +77 % depreciat
Slide 31: Segment gross profit and EBITDA margin
($US in millions, except Life Personal Specialty Inter- interco. unallocated Ashland percentages) Sciences Care Additives mediates eliminations and other sales $204 $172 $182 $66 ($20) - $604 gross profit $73 $67 $51 $29 - - $220 gross profit margin 35.8 % 39.0 % 28.0 % 43.9 % - - 36.4 % EBITDA $58
Slide 32: Liquidity and net debt
liquidity and net debt Moody’s 3/31/22 ($US in millions) expiration interest rate S&P rating rating balance Photo Photo 32
Slide 33: Appendix B: non-GAAP reconciliation
appendix B: non-GAAP reconciliation! provi Although Ashland provides forward looking guidance for adjusted EBITDA in this presentation, Ashland is not reaffirming or iding forward-looking guidance for U.S. GAAP reported financial measures or a reconciliation of forward-looking non-GAAP financial mea
Slide 34: Reconciliation of Non-GAAP Data
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 12 Months Ended March 31, 2022 ($ millions, except percentages) 1 Sales Q2 22 Q1 22 Q4 21 Q3 21 Total Q2 21 Life Sciences $ 204 $ 170 $ 189 $ 193 $ 756 $ 185 Personal Care 172 147 183 147 649 137 Specialty
Slide 35: North America 2 Europe
($ millions) Ashland Europe Performance North __% Materials America2 __% __% Asia Pacific Latin __% Valvoline __% America/ Other - _% 35
Slide 36: North America 2 Europe
($ millions) Ashland Europe Performance North __% Materials America2 __% __% Asia Pacific Latin __% Valvoline __% America/ Other - _% 36
Slide 37: Reconciliation of Non-GAAP Data – Free Cash Flow and Adjusted Operating Income
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Free Cash Flow and Adjusted Operating Income ($ millions) Ashland Specialty Ingredients Ashland __% Performance North Materials America2 __% __% Asia Pacific Latin __% Valvoline __% America/ Other - _% 37
Slide 38: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Ashland Global Holdings Inc. Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended March 31, 2022 and 2021 ($ millions) Ashland Specialty Ingredients Ashland __% Performance North Materials America2 __% __% Asia Pacific __% Latin America/ Other - _% 38
Slide 39: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Life Sciences and Personal Care Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended March 31, 2022 and 2021 ($ millions) Ashland Valvoline Specialty __% Ingredients Ashland __% Performance North Materials America2 __% __% Asia Pacific Latin __% America/ Other - _% 39
Slide 40: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Specialties Additives and Intermediates Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended March 31, 2022 and 2021 ($ millions) Ashland Specialty Ingredients Ashland __% Performance North Materials America2 __% __% Asia Pacific Valvoline __% __% Latin America/ Other - _% 40
Slide 41: Reconciliation of Non-GAAP Data – Adjusted Income from Continuing Operations
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Adjusted Income from Continuing Operations ($ millions) Ashland Specialty Ingredients Ashland __% Performance North Materials America2 __% __% Valvoline Latin __% America/ Other - _% (1) (2) - - (3) 41
Slide 42: Reconciliation of Non-GAAP Data – Adjusted Diluted EPS from Continuing Operations
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Adjusted Diluted EPS from Continuing Operations ($ millions) Ashland Specialty Ashland Europe Ingredients North __% __% Performance Materials America2 __% __% Valvoline Latin __% America/ Other - _% (1) (2)
Slide 43: Ashland
oT ct Ashland always solving