Slide 1: First-Quarter Fiscal 2019 Earnings
First-Quarter Fiscal 2019 Earnings February 5, 2019 / efficacy usability allure integrity profitability
Slide 2: Forward-Looking Statements; Regulation G: Adjusted Results
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: First Quarter Summary
First Quarter Summary 4 Ashland always solving
Slide 4: Adjusted Results Summary
Ashland Global Holdings Inc. Adjusted Results Summary1 ($ in millions) Preliminary Fiscal First Quarter Highlights Three months ended Dec. 31, • Sales down 1% including a -2 percentage point (ppt) 2018 2017 Change impact from currency Sales $ 576 $ 581 (1) % • Reported net loss of $48 million, compa
Slide 5: Specialty Ingredients Adjusted Results Summary
Specialty Ingredients Adjusted Results Summary1 ($ in millions) Fiscal First Quarter Highlights Preliminary Three months ended Dec. 31, • Sales up 1% including a -1 ppt impact from currency and -1 ppt impact from 2018 2017 Change Colgate oral-care reformulation2 EBITDA increased to $112 million, a 7
Slide 6: Specialty Ingredients Sales Trends by End Market
Specialty Ingredients Sales Trends by End Market Fiscal First Quarter End Market Commentary ($ in millions) Three months ended Dec. 31, • Total sales grew 3% excluding the impact of Preliminary foreign currency (-1 ppt2) and Colgate-Gantrez 2018 2017 Change (-1 ppt) Personal care $ 132 $ 136 (3) % •
Slide 7: Intermediates & Solvents Adjusted Results Summary
Intermediates & Solvents Adjusted Results Summary1 ($ in millions) Fiscal First Quarter Highlights Preliminary Three months ended Dec. 31, • Sales down 26% with improved product mix 2018 2017 Change • EBITDA decreased to $3 million Sales $ 23 $ 31 (26) % • EBITDA margin decreased to 13.0% Gross prof
Slide 8: Outlook Summary
Outlook Summary 4 Ashland always solving
Slide 9: Fiscal Year 2019 Outlook
Ashland Global Holdings Inc. Fiscal Year 2019 Outlook Highlights Prior Outlook Updated Outlook • Reaffirm all operating segment Adjusted EBITDA outlooks Adjusted EBITDA - Specialty Ingredients $610 - $635 million Reaffirmed • Reaffirm Adjusted EPS outlook - Intermediates & Solv ents $20 - $30 millio
Slide 10: Cost Reduction Targets
Ashland Global Holdings Inc. Cost Reduction Targets As presented on July 31, 2018 $120 million cost savings components1 Expected Timing Campuses • ~$20 million run rate2 by 9/30/18 Labs Manufacturing • ~$50 million run rate2 by 12/31/18 Third facilities party • ~$60 - $70 million realized savings in
Slide 11: Second-Quarter Fiscal 2019 Outlook
Ashland Global Holdings Inc. Second-Quarter Fiscal 2019 Outlook Highlights • Expect Q2 adjusted EPS1 in the range of $0.80 - $0.90 • Outlook assumes effective tax rate of 15% • Outlook reflects discontinued operations accounting for Composites and Marl Key Drivers • Continued strong year-over-year E
Slide 12: Appendix A: Key Items and Balance Sheet
Appendix A: Key Items and Balance Sheet
Slide 13: Key Items Affecting Income
First Fiscal Quarter – Continuing Operations Key Items Affecting Income ($ in millions, except EPS) Total Preliminary Unallocated After-tax Specialty and earnings 2019 Ingredients I&S Other Pre-tax After-tax per Share Restructuring, separation and other costs $ (28) $ (17) $ (45) $ (41) $ (0.65) Unr
Slide 14: Liquidity and Net Debt
Liquidity and Net Debt ($ in millions) Liquidity Cash $ 149 Revolver and A/R facility availability 793 Liquidity $ 942 Interest Debt Expiration Rate Moody's S&P 4.750% senior notes, par $1,086 08/2022 4.750% Ba3 BB- $ 1,083 Term Loan B 1 05/2024 L+175 Ba1 BB+ 591 6.875% senior notes, par $375 05/204
Slide 15: Appendix B: Business Profiles
Appendix B: Business Profiles 12 Months Ended December 31, 2018
Slide 16: Specialty Ingredients
Specialty Ingredients A global leader of cellulose ethers, vinyl pyrrolidones and biofunctionals Sales Sales Sales by Market1 by Product by Geography PVP Asia Pharma Coatings 17% Pacific 14% Adhesives Europe 16% 14% 33% 19% Energy 2% Cellulosics North Personal 34% Care Other America 24% 14% 40% For
Slide 17: Appendix C: Non-GAAP Reconciliation
Appendix C: Non-GAAP Reconciliation1 1 Although Ashland provides forward looking guidance for adjusted EBITDA in this presentation, Ashland is not reaffirming or providing forward- looking guidance for U.S. GAAP reported financial measures or a reconciliation of forward-looking non-GAAP financial me
Slide 18: Reconciliation of Non-GAAP Data
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 3 Months Ended December 31, 2018 ($ millions, except percentages) Sales1 Q1 19 Specialty Ingredients 553 Intermediates and Solvents 23 Ashland Total 576 Specialty Europe Ingredients Ashland __% Performance
Slide 19: Segment Components of Key Items for Income Statement Captions
Ashland Global Holdings Inc. and Consolidated Subsidiaries Segment Components of Key Items for Applicable Income Statement Captions for 3 Months Ended December 31, 2018 ($ millions) Specialty Intermediates Unallocated Ingredients and Solvents & Other Total OPERATING INCOME (LOSS) Operating key items
Slide 20: Segment Components of Key Items for Income Statement Captions
Ashland Global Holdings Inc. and Consolidated Subsidiaries Segment Components of Key Items for Applicable Income Statement Captions for 3 Months Ended December 31, 2017 ($ millions) Specialty Intermediates Unallocated Ingredients and Solvents & Other Total OPERATING INCOME (LOSS) Operating key items
Slide 21: 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 for 3 Months Ended December 31, 2018 and 2017 ($ millions) Three months ended December 31 Free cash flows1 2018 2017 Total cash flows provided by operating activi
Slide 22: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Ashland Global Holdings Inc. Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended December 31, 2018 and 2017 ($ millions) Three months ended December 31 Adjusted EBITDA - Ashland Global Holdings Inc. 2018 2017 Net loss $ (48) $ (4) Income tax expense 24 10 Net interest and other fina
Slide 23: Reconciliation of Non-GAAP Data – Adjusted EBITDA by Segment
Specialty Ingredients, Intermediates and Solvents Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended December 31, 2018 and 2017 ($ millions) Three months ended December 31 Adjusted EBITDA - Specialty Ingredients 2018 2017 Operating income $ 26 $ 42 Add: Depreciation and amortizatio
Slide 24: 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 for 3 Months Ended December 31, 2018 and 2017 Three months ended ($ millions) December 31 2018 2017 Loss from continuing operations (as reported) $ (71) $ (32) Key
Slide 25: 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 for 3 Months Ended December 31, 2018 and 2017 Three months ended December 31 2018 2017 Diluted EPS from continuing operations (as reported) $ (1.14) $ (0.51) K
Slide 26: Trademark notice
® Registered trademark, Ashland or its subsidiaries, registered in various countries ™ Trademark, Ashland or its subsidiaries, registered in various countries