Slide 1: Third-Quarter Fiscal 2018 Earnings
Third-Quarter Fiscal 2018 Earnings July 31, 2018 / efficacy usability allure integrity profitability
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: Third Quarter Summary
Third Quarter Summary <fas hland always solvit
Slide 4: Ashland Global Holdings Inc. Adjusted Results Summary
Ashland Global Holdings Inc. Adjusted Results Summary1 Highlights Sales up 12% including 3 percentage points (ppts) from acquisitions/divestitures and 3 ppts from currency Reported net income was $36 million, compared to a loss of $30 million last year; income from continuing operations was $36 mill
Slide 5: Specialty Ingredients Adjusted Results Summary
Specialty Ingredients Adjusted Results Summary1 Highlights Sales up 8% including 1 ppt from acquisitions/divestitures and 2 ppts from currency Gross profit margin increased to 34.9% EBITDA increased to $155 million, an 18 percent increase versus prior year EBITDA margin increased 210 bps to 24.3% Ke
Slide 6: Specialty Ingredients Sales Trends by End Market
Specialty Ingredients Sales Trends by End Market End Market Commentary Strong organic sales growth Continued robust growth in Personal care biofunctional ingredients, including new products for enhanced skin care applications Strong progress in qualifying recently added cellulosic excipient capacity
Slide 7: Composites Adjusted Results Summary
Composites Adjusted Results Summary1 Ashland‘s earnings release dated July 31, 2018, available on Ashland's website at http://investor.ashland.com, reconciles adjusted amounts to amounts reported under GAAP. Highlights Sales up 20% including 7 ppts from acquisitions and 2 ppts from currency EBITDA i
Slide 8: Intermediates & Solvents Adjusted Results Summary
Intermediates & Solvents Adjusted Results Summary1 Ashland‘s earnings release dated July 31, 2018, available on Ashland's website at http://investor.ashland.com, reconciles adjusted amounts to amounts reported under GAAP. Highlights Sales up 19% EBITDA increased to $17 million EBITDA margin increase
Slide 9: Outlook Summary
Outlook Summary <fas hland always solvit
Slide 10: LTM 6/30/18 SG&A Profile
Ashland Global Holdings Inc. LTM 6/30/18 SG&A Profile1 Cost reduction progress tracking Specialty Ingredients: reduction versus total SG&A expense of $521 million Stranded: quarterly call out of stranded costs (reduction of current run rate of $70 million) SG&A Expense categories (as per above table
Slide 11: Cost Reduction Targets
Ashland Global Holdings Inc. Cost Reduction Targets Expected Timing ~$20 million run rate by 9/30/18 ~$50 million run rate by 12/31/18 ~$60 - $70 million realized savings in FY2019 ~$20 million realized savings in Specialty Ingredients in FY2019 ~$120 million run rate by 12/31/19 Manufacturing facil
Slide 12: Fiscal Year 2018 Outlook
Highlights Increasing adjusted EPS to $3.50 - $3.60 reflecting strong Q3 results and Q4 outlook Narrowing adjusted EBITDA outlooks for Specialty Ingredients, Composites and I&S Mid point of Specialty Ingredients’ adjusted EBITDA outlook remains unchanged since the beginning of FY2018 Ashland Global
Slide 13: Fourth-Quarter Fiscal 2018 Outlook
Highlights Expect Q4 adjusted EPS in the range of $0.90 - $1.00 vs. $0.78 prior year Outlook assumes effective tax rate of 19% vs. 6% prior year Key Drivers Continued strong year-over-year sales and EBITDA growth in Specialty Ingredients Composites and I&S contribution consistent with recent results
Slide 14: Appendix A: Key Items and Balance Sheet
Appendix A: Key Items and Balance Sheet
Slide 15: Third Fiscal Quarter – Continuing Operations Key Items Affecting Income
Third Fiscal Quarter – Continuing Operations Key Items Affecting Income
Slide 16: Liquidity and Net Debt
Liquidity and Net Debt ($ in millions)
Slide 17: Appendix B: Business Profiles
Appendix B: Business Profiles 12 Months Ended June 30, 2018
Slide 18: Corporate Profile
Corporate Profile By business unit By geography 1For 12 months ended June 30, 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 66% Intermediates and Solvents 9% Composites 25%
Slide 19: Corporate Profile
Corporate Profile For 12 months ended June 30, 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 20: Specialty Ingredients Sales by Market
Specialty Ingredients Sales by Market2 For 12 Months Ended June 30, 2018 Sales: $2.4 billion Adjusted EBITDA: $554 million1 Adjusted EBITDA Margin: 22.8%1 Sales by Product Cellulosics 33% PVP 17% Adhesives 14% North America 41% Asia Pacific 18% Europe 32% Latin America/ Other – 9% Actives – 6% Vinyl
Slide 21: Composites Sales by Geography
Composites Sales by Geography For 12 Months Ended June 30, 2018 Sales: $925 million Adjusted EBITDA: $99 million1 Adjusted EBITDA Margin: 10.7%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 4
Slide 22: Intermediates and Solvents Sales by Geography
Intermediates and Solvents Sales by Geography For 12 Months Ended June 30, 2018 Sales: $310 million Adjusted EBITDA: $55 million1 Adjusted EBITDA Margin: 17.7%1 Sales by Product Butanediol 43% Derivatives 57% General Industrial 28% Plastics/ Polymers 35% Sales by Application North America 21% Asia P
Slide 23: Appendix C: Non-GAAP Reconciliation
Appendix C: Non-GAAP Reconciliation1 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 24: Reconciliation of Non-GAAP Data for 12 Months Ended June 30, 2018
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 12 Months Ended June 30, 2018 North America2 __% Asia Pacific __% Latin America/ Other - _% Europe __% Ashland Specialty Ingredients __% Ashland Performance Materials __% Valvoline __% 1Quarterly totals ma
Slide 25: Trademark Notices
® Registered trademark, Ashland or its subsidiaries, registered in various countries ™ Trademark, Ashland or its subsidiaries, registered in various countries