Ashland Inc. · NYSE:ASH
Ashland — Q3 2025 Earnings Presentation
37 slides from Ashland's earnings presentation, Jul 30, 2025
Slide 1: Ashland always solving
</ Ashland always solving
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: Q3 performance summary agenda
Q3 performance summary Q3 financial results business unit reviews strategic priorities & outlook closing comments Q&A ‘Ns a P E cl Ashland — always solving id Ashland
Slide 4: Wie ORE CY
Om 40 Wie ORE CY FOR 1OnOs, 40 » Oo
Slide 5: Q3 highlights
Q3 highlights! Adjusted EPS? (-) reduced income from continuing operations, (+) 3.3 million shares a in LIM Adjusted EBITDA [> wy (-) portfolio optimization, lower organic sales & production volumes (+) lower SARD & production costs 24.4% * / reported under U.S. GAAP, including reconciliations of ne
Slide 6: Margin resilience driven by cost & portfolio actions
margin resilience driven by cost & portfolio actions — strategic portfolio actions reshape baseline for growth disciplined execution sustains strong margins! across segments [EEE 5210s comporsons versus proryeor quarter 33% [ERR] comparisons versus priotyeor quarter soles comparisons versus reset’ p
Slide 7: Business unit reviews
v \ . ant) Ole? ORS business unit reviews Q3 financial results and ~~ ca | / NA \s — / ~ x) o—/ / s) SOR Hy WR 7 WRI eH © </ Ashland
Slide 8: — $544 36.2 % $110 $87 $139 25.6 % $1.49
— $544 36.2 % $110 $87 $139 25.6 % $1.49 8
Slide 9: Life Sciences highlights
highlights o broad-based pharma volume growth; cellulosics & VP&D o globalize businesses: tablet coatings + injectables up double-digits year-over-year o softer nutrition demand o targeted pricing actions on share gains; in-line with expectations o lower SARD from restructuring © sustained ~33% EBIT
Slide 10: Intermediates highlights
highlights o captive BDO sales down on lower pricing © merchant: broadly lower pricing & higher volume o lower production volumes impacted profitability o advanced manufacturing tax credits partially offset cost pressure adjusted results summary’ sales gross profit gross profit margin 22.2% (4 bps o
Slide 11: Personal care
personal care adjusted results summary’ reset results? highlights (SUS in millions, except percentages) Q3 FY25 Q3 FY24 change Q3 FY24 change & muted de sales $147 $175 gross profit $61 $71 gross profit margin MN5% 40.6% rf ay operating income $26 $32 EBITDA $41 $51 EBITDA margin 27.9 % 29.1% skin c
Slide 12: Specialty additives highlights
highlights o soft coatings season o coatings demand weakness and share loss in China, in-line o sustained coatings competition in MEAI markets © continued growth in energy and performance specialties 9 pricing stable YoY, marking improvement from Q2 decline o lower production volumes; network consol
Slide 13: 13
13
Slide 14: ~$90 MM EBITDA impact: reset cost structure
~$90 MM EBITDA impact1 — reset cost structure and eliminate stranded cost strengthen HEC & VP&D competitive position; enable share gains 14
Slide 15: Long-term financial targets
long-term financial targets ~5% sales CAGR >25% adj. EBITDA | >50% FCF conversion optimized businesses: ~($400MM) sales impact life sciences & personal specialty additives & care: +LSD CAGR intermediates: (LSD) CAGR stable organic les CAGR during challenging macro i : : : : : 2019 2020 2021 2022 202
Slide 16: On track
on track on track — ~$100 MM ~$100 MM revenue impact1 revenue impact1 16
Slide 17: Narrowing FY25 outlook
narrowing FY25 outlook forward looking insights » risks & opportunities key market factors European & Chinese economic : : : recovery * muted growth and cautious consumer sentiment persist Ph . ih p, IC deli competitive intensity from Chinese arma remains resi ient; ersona are delivers momentum over
Slide 18: Closing comments
Guillermo Novo, Chair and CEO closing comments
Slide 19: Thank you, Q&A
thank you Q&A <f'Ashland 19
Slide 20: Appendix A: adjusted results summary and balance sheet
O O0.,.00 O 0 $) (@) OO 2 0 appendix A: adjusted results summary and balance sheet
Slide 21: Sales reset detail
sales reset detail sales life personal specialty (SUS in millions) sciences care additives InicmeRTseEs ite FY 2024 reported $810 $634 $572 $97 $2,113 portfolio reset impact! (130) (10) (24) -- (164) FY 2024 portfolio reset 680 624 548 97 1,949 avoca exit -- (55) -- -- (55) FY 2024 portfolio reset w
Slide 22: Adjusted EBITDA by segment
— 22 2. Calculation of adjusted EBITDA for each period presented have been reconciled within certain financial filings with the SEC and posted on Ashland's website for each reportable segment.
Slide 23: Adjusted results summary
— $544 $197 36.2 % $110 $87 $54 $139 25.6 % $8 23 % $60 $75 51 $1.49 1 All figures are presented on an adjusted basis except Sales and Diluted share count (million shares). Appendix B reconciles adjusted amounts to amounts reported under U.S. GAAP, including reconciliations of net income to EBITDA a
Slide 24: Q3 business unit consolidation
Q3 business unit consolidation! an specialty CPSC SINCE DEES ETES) So gross profit $163 EBITDA ($15) $3 1 Allfigures are presented on an adjusted basis except Sales. Appendix B reconciles adjusted amounts to amounts reported under US. GAAP, including reconciliations of net income to EBITDA and Adjus
Slide 25: Liquidity and net debt
liquidity and net debt (SUS in millions) expiration interest rate cody S&P rating 6/30/25 rating balance revolver availability 596 US and foreign A/R sales program! debt 3.375% notes Sept. 2031 3.375% 6.50% junior subordinated notes Jun. 2029 6.500% total debt Ba1/stable BB+/stable $1,382 net debt $
Slide 26: — o 1.80 o o 1.60 1.40 o 1.20 1.00 o 0.80 o 0.60
— o 1.80 o o 1.60 1.40 o 1.20 1.00 o 0.80 o 0.60 0.40 o o 0.20 - 26
Slide 27: 27
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Slide 28: Reconciliation of Non-GAAP Data
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for the 12 Months Ended June 30, 2025 — 28 1 Quarterly totals may not add to annual amounts due to rounding. Calculation of Adjusted EBITDA for each period presented have been reconciled within certain financial filings with
Slide 29: Segment components of key items, 3 months ended June 30, 2025
Ashland Inc. and Consolidated Subsidiaries Segment Components of Key Items for Applicable Income Statement Captions — for the 3 months ended June 30, 2025 In millions - preliminary and unaudited Three Months Ende June 30, 2025 — (S millions) a Life Sciences Personal Core Additives Intermediates Tota
Slide 30: Segment components of key items, 3 months ended June 30, 2024
Ashland Inc. and Consolidated Subsidiaries Segment Components of Key Items for Applicable Income Statement Captions — for the 3 months ended June 30, 2024 In millions - preliminary and unaudited — ‘Three Months Ended June 30, 2024 ($ millions) site Sciences Additives _Infermedi total OPERATING INCOM
Slide 31: Free Cash Flow and Adjusted Operating Income
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data — Free Cash Flow and Adjusted Operating Income for the 3 and 9 Months Ended June 30, 2025 and 2024 tne months ended une 30 Free cash flows 2025 202 Total cash flows provided ry operating activities fram continuing Sparanans 5
Slide 32: Reconciliation of Non-GAAP Data — Adjusted EBITDA
Ashland Inc. Reconciliation of Non-GAAP Data — Adjusted EBITDA for the 3 Months Ended June 30, 2025 and 2024 (S millions) Three months ended June 30 Adjusted EBITDA - Ashland Inc. 2025. .~—~*«‘ Net income (loss) $ (742) 6 Income tax expense (benefit) 15 (101) Net interest and other expense (income)
Slide 33: Adjusted EBITDA: Life Sciences and Personal Care
Life Sciences and Personal Care Reconciliation of Non-GAAP Data — Adjusted EBITDA for the 3 Months Ended June 30, 2025 and 2024 (S millions) Adjusted EBITDA - Life Sciences Operating income (loss) Add: Depreciation and amortization” Operating key items (see slides 29 & 30) Adjusted EBITDA Adjusted E
Slide 34: Adjusted EBITDA: Specialty Additives and Intermediates
Specialties Additives and Intermediates Reconciliation of Non-GAAP Data — Adjusted EBITDA for the 3 Months Ended June 30, 2025 and 2024 ($ millions) 34 @ Adjusted EBITDA - Specialty Additives Three months ended Operating income (loss) Add: Depreciation and amortization Operating key items (see slide
Slide 35: Notes on key items
— ($ millions) (a ) Re p re se nts the ta x e ffe c t o f the ke y ite ms tha t a re p re vio usly id e ntifie d a b o ve (b ) Re p re se nts ke y ite ms re sulting fro m ta x-sp e c ific fina nc ia l tra nsa c tio ns, ta x la w c ha ng e s o r o the r ma tte rs tha t fa ll within the d e finitio n
Slide 36: Adjusted Diluted EPS from Continuing Operations
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data — Adjusted Diluted EPS from Continuing Operations for the 3 and 9 Months Ended June 30, 2025 and 2024 Thrse months ended Nine months ended June 39 lune 20 2025 2024 2025 2024 Diluted EPS from continuing operations (es reporte
Slide 37: Ashland
<t Ashland always solving