Slide 1: Fourth-Quarter Fiscal 2018 Earnings
Fourth-Quarter Fiscal 2018 Earnings November 6, 2018 / 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: Important Information
Important Information In connection with the forthcoming solicitation of proxies from stockholders in respect of Ashland’s 2019 Annual Meeting of Stockholders, Ashland will file with the Securities and Exchange Commission (“SEC”) a proxy statement on Schedule 14A (the “proxy statement”), containing
Slide 4: Fourth Quarter Summary
Fourth Quarter Summary af Ashland always solving
Slide 5: Adjusted Results Summary
Ashland Global Holdings Inc. Adjusted Results Summary1 ($ in millions) Preliminary Fiscal Fourth Quarter Highlights Three months ended Sept. 30, • Sales up 9% with no acquisitions/divestitures 2018 2017 Change impact and including a -1 percentage point Sales $ 956 $ 880 9 % (ppt) impact from currenc
Slide 6: Specialty Ingredients Adjusted Results Summary
Specialty Ingredients Adjusted Results Summary1 ($ in millions) Fiscal Fourth Quarter Highlights Preliminary Three months ended Sept. 30, • Sales up 6% with no acquisitions / divestitures impact and including a -1 2018 2017 Change ppt impact from currency Sales $ 636 $ 598 6 % • EBITDA increased to
Slide 7: Specialty Ingredients Sales Trends by End Market
Specialty Ingredients Sales Trends by End Market1 Fiscal Fourth Quarter End Market Commentary ($ in millions) Three months ended Sept. 30, YTD • Strong overall organic sales growth of 6% Preliminary 2018 2017 Change Change • Within Personal care, robust biofunctional ingredients growth offset by low
Slide 8: Composites Adjusted Results Summary
Composites Adjusted Results Summary1 ($ in millions) Fiscal Fourth Quarter Highlights Preliminary Three months ended Sept. 30, • Sales up 8% including a -2 ppts impact from currency 2018 2017 Change • EBITDA of $20 million Sales $ 237 $ 219 8 % Gross profit $ 42 $ 41 2 % Key Drivers Gross profit as
Slide 9: Intermediates & Solvents Adjusted Results Summary
Intermediates & Solvents Adjusted Results Summary1 ($ in millions) Fiscal Fourth Quarter Highlights Preliminary Three months ended Sept. 30, • Sales up 32% 2018 2017 Change • EBITDA increased to $15 million Sales $ 83 $ 63 32 % • EBITDA margin increased 220 bps to 18.1% Gross profit $ 16 $ 11 45 % G
Slide 10: Fiscal Year Summary
Fiscal Year Summary af Ashland always solving
Slide 11: Fiscal Year 2018 Summary
Ashland Global Holdings Inc. Fiscal Year 2018 Summary1 ($ in millions) Fiscal Year Full Year Highlights Preliminary Twelve months ended Sept. 30, • Sales up 15% to $3.7 billion 2018 2017 Change Sales • Double-digit sales growth in all three segments Specialty Ingredients $ 2,470 $ 2,216 11 % • Adjus
Slide 12: Outlook Summary
Outlook Summary af Ashland’ always solving
Slide 13: Fiscal Year 2019 Outlook
Ashland Global Holdings Inc. Fiscal Year 2019 Outlook Outlook Highlights Adjusted EBITDA • Outlook provided on a current-operations basis - Specialty Ingredients $610 - $635 million • Update to be provided following a - Composites $95 - $105 million Composites/Marl divestiture announcement - Interme
Slide 14: 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 15: First-Quarter Fiscal 2019 Outlook
Ashland Global Holdings Inc. First-Quarter Fiscal 2019 Outlook Highlights • Expect Q1 adjusted EPS in the range of $0.55 - $0.65 vs. $0.42 prior year1 • Outlook assumes effective tax rate of 16% vs. 18% prior year • Outlook provided on a current-operations basis − Update to be provided following a C
Slide 16: Appendix A: Key Items and Balance Sheet
Appendix A: Key Items and Balance Sheet
Slide 17: Key Items Affecting Income
Fourth Fiscal Quarter – Continuing Operations Key Items Affecting Income ($ in millions, except EPS) Operating Income Total Preliminary Unallocated After-tax Specialty and earnings 2018 Ingredients Composites I&S Other Pre-tax After-tax per Share Restructuring, separation and other costs $ (3) $ (53
Slide 18: Liquidity and Net Debt
Liquidity and Net Debt ($ in millions) Liquidity Cash $ 294 Revolver and A/R facility availability 754 Liquidity $ 1,048 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+ 593 6.875% senior notes, par $375 05/2
Slide 19: Appendix B: Business Profiles
Appendix B: Business Profiles 12 Months Ended September 30, 2018
Slide 20: Corporate Profile
Corporate Profile Sales1 - $3.7 Billion By business unit By geography Specialty Europe Ingredients 35% 66% Intermediates North and Solvents 9% America2 Asia Pacific 40% 17% Latin Composites America/ 25% Other - 8% 1 For 12 months ended September 30, 2018. 2 Ashland includes only U.S. and Canada in i
Slide 21: Corporate Profile
Corporate Profile Adjusted EBITDA1 - $683 Million Specialty NYSE Ticker Symbol: ASH Ingredients 79% Total Employees: ~6,000 Outside North America ~45% Composites 13% Number of Countries More Intermediates and in Which Ashland than 100 Solvents 8% Has Sales: 1 For 12 months ended September 30, 2018.
Slide 22: Specialty Ingredients
Specialty Ingredients A global leader of cellulose ethers, vinyl pyrrolidones and biofunctionals Sales Sales Sales 2 by Market by Product by Geography PVP Pharma Coatings 17% Asia 16% 14% Europe Pacific 33% 18% Pharmachem 10% Personal Cellulosics North Care 34% Other 24% 13% America 40% For 12 Month
Slide 23: Composites
Composites A global leader in unsaturated polyester resins, vinyl ester resins and gel coats Sales Sales Sales by Market by Product by Geography Marine 22% Europe 34% Construction: Residential 17% North Construction: UPR/VER2 America Latin America/ Industrial 85% 45% Other 7% 41% For 12 Months Ended
Slide 24: Intermediates and Solvents
Intermediates and Solvents A global leader in butanediol and related derivatives Sales Sales Sales by Application by Product by Geography Agriculture Asia 5% Pacific 15% Pharma Plastics/ 15% North Polymers Derivatives Butanediol America 37% 45% 55% 21% General Europe Industrial 61% 26% Latin Electro
Slide 25: Appendix C: Non-GAAP Reconciliation
Appendix C: Non-GAAP Reconciliation1 1 Although Ashland provides forward looking guidance for adjusted EBITDA in this presentation, Ashland is not reaffirming or providing forward- looking guidance for U.S. GAAP reported financial measures or a reconciliation of forward-looking non-GAAP financial me
Slide 26: Reconciliation of Non-GAAP Data
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 12 Months Ended September 30, 2018 ($ millions, except percentages) 1 Sales Q4 18 Q3 18 Q2 18 Q1 18 Total Specialty Ingredients 636 638 646 550 2,470 Composites 237 250 238 218 942 Ashland Intermediates an
Slide 27: 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 September 30, 2018 ($ millions) Specialty Intermediates Unallocated Ingredients Composites and Solvents & Other Total OPERATING INCOME (LOSS) Operati
Slide 28: 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 September 30, 2017 ($ millions) Specialty Intermediates Unallocated Ingredients Composites and Solvents & Other Total OPERATING INCOME (LOSS) Operati
Slide 29: 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 September 30, 2018 and 2017 ($ millions) Three months ended September 30 Free cash flows 1 2018 2017 Total cash flows provided by operating act
Slide 30: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Ashland Global Holdings Inc. Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended September 30, 2018 and 2017 ($ millions) Three months ended September 30 Adjusted EBITDA - Ashland Global Holdings Inc. 2018 2017 Net income (loss) $ 9 $ (58) Income tax expense (benefit) (1) 56 Net int
Slide 31: Adjusted EBITDA by Segment
Specialty Ingredients, Composites, Intermediates and Solvents Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended September 30, 2018 and 2017 ($ millions) Three months ended September 30 Adjusted EBITDA - Specialty Ingredients 2018 2017 Operating income $ 92 $ 61 Add: Depreciation a
Slide 32: 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 September 30, 2018 and 2017 Three months ended ($ millions) September 30 2018 2017 Income (loss) from continuing operations (as reported) $ 11 $
Slide 33: 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 September 30, 2018 and 2017 Three months ended September 30 2018 2017 Diluted EPS from continuing operations (as reported) $ 0.17 $ (0.84) K
Slide 34: 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 Years Ended September 30, 2018 and 2017 ($ millions) Year ended September 30 Free cash flow1 2018 2017 Total cash flows provided by operating activities from
Slide 35: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Ashland Global Holdings Inc. Reconciliation of Non-GAAP Data – Adjusted EBITDA for Years Ended September 30, 2018 and 2017 ($ millions) Year ended September 30 Adjusted EBITDA - Ashland Global Holdings Inc. 2018 2017 Net income (loss) $ 114 $ 28 Income tax expense (benefit) 9 7 Net interest and othe
Slide 36: Adjusted EBITDA by Segment
Specialty Ingredients, Composites, Intermediates and Solvents Reconciliation of Non-GAAP Data – Adjusted EBITDA for Years Ended September 30, 2018 and 2017 ($ millions) Years ended September 30 Adjusted EBITDA - Specialty Ingredients 2018 2017 Operating income $ 314 $ 233 Add: Depreciation and amort
Slide 37: Adjusted Income from Continuing Operations
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Adjusted Income from Continuing Operations for Years Ended September 30, 2018 and 2017 Year ended ($ millions) September 30 2018 2017 Income (loss) from continuing operations (as reported) $ 105 $ (105) Key
Slide 38: 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 Years Ended September 30, 2018 and 2017 Year ended September 30 2018 2017 Diluted EPS from continuing operations (as reported) $ 1.66 $ (1.69) Key items, b
Slide 39: Trademark notice
® Registered trademark, Ashland or its subsidiaries, registered in various countries ™ Trademark, Ashland or its subsidiaries, registered in various countries