Slide 1: Goldman Sachs Basic Materials Conference
Goldman Sachs Basic Materials Conference James J. O'Brien Chairman and Chief Executive Officer May 21, 2008
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 and Section 21E of the Securities Exchange Act of 1934, with respect to Ashland’s operating performance. These estimates are based upon a number of assump
Slide 3: Ashland Today
Ashland Distribution Ashland Performance Materials Ashland Water Technologies Valvoline Ashland Today • Fiscal 2008 YTD* Financial Results – Sales & Operating Revenue = $4.0 billion – Operating Income = $98 million
Slide 4: 2008 YTD Revenue and Operating Income
Ashland Distribution 51% Performance Materials 19% Valvoline 19% Ashland Distribution 20% Performance Materials 32% Valvoline 45% 11% 3% Ashland Distribution 51% Performance Materials 19% Sales & Operating Revenue Water Technologies Water Technologies Operating Income Ashland Distribution 20% Perfor
Slide 5: 2008 YTD Revenue by Region
North America 79% Europe 16% 3% 3% North America 70% Europe 22% 5% 2% North America 79% Europe 16% Other Other 3% 3% Revenue by Region 2008 YTD* Asia/Pacific Asia/Pacific North America 70% Europe 22% 5% 2%
Slide 6: Performance Materials Business Description
Residential Housing Transportation Industrial Construction Packaging & Converting Infrastructure Marine Performance Materials Business Description • Composite Polymers - Global manufacturer of unsaturated polyester resins, vinyl ester resins and gelcoats for use in composites • Casting Solutions - A
Slide 7: Performance Materials 2008 YTD
North America 50% Europe 34% 2008 YTD* Revenue by Region Performance Materials 2008 YTD* • Sales & Operating Revenue: $769 million • Operating Income: $31 million • Operating Income Percent: 4.0% Strategy • Cost structure efficiency • Premium product emphasis • Growth through expanding new technolog
Slide 8: Distribution Business Description
Building & Construction Chemical Mfg Personal Care Transportation Paint & Coatings Retail Consumer Marine Medical 2008 YTD* Revenue by Market (percent) Other Distribution Business Description • Leading North American distributor of packaged and bulk chemicals, plastics and composite materials; provi
Slide 9: Distribution 2008 YTD
Composites 11% Plastics 42% Chemicals 45% Environmental Services/ Other - - 2% 2008 YTD* Revenue by Product Line Distribution 2008 YTD* • Sales & Operating Revenue: $2.1 billion • Operating Income: $19 million • Operating Income Percent: 0.9% Strategy • Operational excellence through systems and pro
Slide 10: Valvoline Business Description
Do-It-Yourself 34% Do-It-For-Me 30% International 22% 11% For the six months ended March 31, 2008. ® Registered trademark, Ashland. Valvoline Instant Oil Change 2008 YTD* Revenue by Channel Specialty/ Other - - 3% Valvoline Business Description • Do-It-For-Me - - Branded and non-branded lubricant an
Slide 11: Valvoline 2008 YTD
Lubricants 82% 3% 3% 6% 2008 YTD* Revenue by Product Line Appearance Filters Antifreeze Valvoline 2008 YTD* • Sales & Operating Revenue: $781 million • Operating Income: $44 million • Operating Income Percent: 5.6% Strategy • Premium business focus • Optimize business models • Growth through new tec
Slide 12: Water Technologies Business Description
Industrial 42% Marine 16% E&PS 42% 2008 YTD* Revenue by Segment Water Technologies Business Description • Major supplier of chemicals and services for utility water treatment, including boiler water, cooling water, fuel and waste water • Major supplier and global producer of process water treatments
Slide 13: Water Technologies 2008 YTD
Europe 48% North America 31% 2008 YTD* Revenue by Region Water Technologies 2008 YTD* • Sales & Operating Revenue: $423 million • Operating Income: $3 million • Operating Income Percent: 0.7% Strategy • Fix operating issues • Improve pricing process • Reduce cost structure • Improve supply chain • A
Slide 14: Cost structure efficiency
14 Cost structure efficiency Run Rate Savings* by Function Sales, marketing, technical and administrative $ 2008 2009 Freight Manufacturing and warehousing Total Savings* by Business (in mitiions) Performance Materials Water Technologies Distribution Valvoline * Estimated.
Slide 15: Financial Priorities/Strategic Initiatives
For the six months ended March 31, 2008. ** Operating-segment trade working capital includes accounts receivable, inventory excluding LIFO reserve, and trade and other payables, net. Financial Priorities/Strategic Initiatives • Focus on price management • Working capital/cash flow – Generated $141 m
Slide 16: Investment Highlights
Investment Highlights • Net cash position provides options • Cost structure efficiency – Performance Materials – Water Technologies • Focus on cash generation
Slide 17: Questions?
Questions?