Ashland Inc. · NYSE:ASH
Ashland — Ashland Global Holdings — Q4 2017 Earnings Presentation
29 slides from Ashland's earnings presentation, Nov 6, 2017
Slide 1: Fourth-Quarter Fiscal 2017 Earnings
Fourth-Quarter Fiscal 2017 Earnings November 6, 2017 / efficacy usability allure integrity profitability
Slide 2: Forward-Looking Statements
Forward-Looking StatementsThis 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 s
Slide 3: Fourth Quarter Summary
Fourth Quarter Summary ee Ashland ‘always solving
Slide 4: Ashland Global Holdings Inc. Adjusted Results Summary
Ashland Global Holdings Inc.Adjusted Results Summary1 4 HighlightsSales up 17%; acquisitions and currency contributing 10 percentage points and 1 percentage point, respectivelyReported net loss of $58 million; loss from continuing operations of $53 million or $0.84 per diluted shareEBITDA up 13% to
Slide 5: Specialty Ingredients Adjusted Results Summary
Specialty IngredientsAdjusted Results Summary1 HighlightsSales up 12%Gross profit margin up 150 bpsEBITDA up 12%Key DriversStrong Pharmachem contribution; increased EBITDA from the business excluding acquisition impactGross profit improvement driven by gains in Personal Care, Pharma and better asset
Slide 6: Specialty Ingredients Sales Trends by End Market
Specialty IngredientsSales Trends by End Market 6 End Market CommentaryNew products helped drive positive Personal Care growthImproved asset utilization enabled cellulosic excipient growth in PharmaPharmachem was a strong contributor, consistent with expectationsCoatings and Adhesives sales flat as
Slide 7: Composites Adjusted Results Summary
CompositesAdjusted Results Summary1 Ashland‘s earnings release dated November 6, 2017, available on Ashland's website at http://investor.ashland.com, reconciles adjusted amounts to amounts reported under GAAP. 7 HighlightsSales up 35%EBITDA up 64%EBITDA margin up 190 bpsKey DriversStrong growth driv
Slide 8: Intermediates & Solvents Adjusted Results Summary
Intermediates & SolventsAdjusted Results Summary1 Ashland‘s earnings release dated November 6, 2017, available on Ashland's website at http://investor.ashland.com, reconciles adjusted amounts to amounts reported under GAAP. 8 HighlightsSales up 5%EBITDA increased to $10 millionEBITDA margin increase
Slide 9: Fiscal Year Summary
Fiscal Year Summary ee Ashland ‘always solving
Slide 10: Ashland Global Holdings Inc. Fiscal Year 2017 Summary
Ashland Global Holdings Inc.Fiscal Year 2017 Summary1 Ashland‘s earnings release dated November 6, 2017, available on Ashland's website at http://investor.ashland.com, reconciles free cash flow to amounts reported under GAAP. See Appendix D for a reconciliation of adjusted EBITDA. Definition of free
Slide 11: Outlook Summary
Outlook Summary ee Ashland ‘always solving
Slide 12: First-Quarter Fiscal 2018 Outlook
Ashland Global Holdings Inc.First-Quarter Fiscal 2018 Outlook HighlightsExpect Q1 adjusted EPS in the range of $0.35 - $0.45 vs. $0.14 prior yearBased on an effective tax rate of 10 percentKey DriversSpecialty IngredientsContinued contribution from PharmachemExcluding acquisitions, improving YOY sal
Slide 13: Fiscal Year 2018 Outlook
Ashland Global Holdings Inc.Fiscal Year 2018 Outlook 13 For fiscal 2017, loss from continuing operations per diluted share was $1.69 and adjusted earnings from continuing operations per diluted share was $2.44. Ashland‘s earnings release dated November 6, 2017, available on Ashland's website at http
Slide 14: Appendix A: Bridges
Appendix A: Bridges <f Ashland ‘always solving
Slide 15: Specialty Ingredients Sales and Adjusted EBITDA Bridges
Specialty IngredientsSales and Adjusted EBITDA Bridges ($ millions)Preliminary 15 Acquisitions include Pharmachem Laboratories, Inc. 0% Q4 2016 Volume / Mix 532 598 0% 1% 11% Sales Price FX Acq/Div/Other1 Q4 2017 2 Q4 2016 Volume/ Mix 126 141 3 (2) 2 10 Adjusted EBITDA Margin SG&A FX Q4 2017 Acq/Div
Slide 16: Composites Sales and Adjusted EBITDA Bridges
CompositesSales and Adjusted EBITDA Bridges ($ millions)Preliminary 16 Acquisitions include the composites facility in Etain, France. 13% Q4 2016 Volume / Mix 162 219 9% 2% 11% Sales Price FX Acq/Div/Other1 Q4 2017 5 Q4 2016 Volume/ Mix 14 23 2 (1) 1 2 Adjusted EBITDA Margin SG&A FX Q4 2017 Acq/Div/
Slide 17: Intermediates & Solvents Sales and Adjusted EBITDA Bridges
Intermediates & SolventsSales and Adjusted EBITDA Bridges ($ millions)Preliminary 17 (6%) Q4 2016 Volume / Mix 60 63 8% 3% 0% Sales Price FX Acq/Div/Other Q4 2017 0 Q4 2016 Volume/ Mix 3 10 8 (1) 0 0 Adjusted EBITDA Margin SG&A FX Q4 2017 Acq/Div/Other
Slide 18: Appendix B: Key Items and Balance Sheet
Appendix B: Key Items and Balance Sheet
Slide 19: Key Items Affecting Income
Fiscal Fourth Quarter – Continuing OperationsKey Items Affecting Income 19
Slide 20: Liquidity and Net Debt
Liquidity and Net Debt ($ in millions) 20
Slide 21: Appendix C: Business Profiles
Appendix C: Business Profiles 12 Months Ended September 30, 2017
Slide 22: Corporate Profile
Corporate Profile By business unit By geography 1 For 12 months ended September 30, 2017.2 Ashland includes only U.S. and Canada in its North America designation. North America240% Asia Pacific18% LatinAmerica/Other - 9% Europe 33% SpecialtyIngredients68% Intermediates and Solvents8% Composites24% S
Slide 23: Corporate Profile
Corporate Profile For 12 months ended September 30, 2017. See Appendix D 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 SpecialtyIngredients81% Intermediates a
Slide 24: Specialty Ingredients Sales by Market
Specialty Ingredients Salesby Market2 For 12 Months Ended September 30, 2017Sales: $2.2 billionAdjusted EBITDA: $493 million1Adjusted EBITDA Margin: 22.2%1 Salesby Product Cellulosics 36% PVP18% Adhesives 15% North America 40% AsiaPacific 19% Europe 31% Latin America/Other – 10% Actives – 6% Vinyl E
Slide 25: Composites Sales by Geography
Composites Salesby Geography For 12 Months Ended September 30, 2017Sales: $779 millionAdjusted EBITDA: $89 million1Adjusted EBITDA Margin: 11.4%1 Salesby Product UPR/VER283% Gel coats and other17% Construction: Residential19% Marine 23% Construction:Industrial39% Salesby Market North America47% Asia
Slide 26: Intermediates and Solvents Sales by Geography
Intermediates and Solvents Salesby Geography For 12 Months Ended September 30, 2017Sales: $265 millionAdjusted EBITDA: $26 million1Adjusted EBITDA Margin: 9.8%1 Salesby Product Butanediol39% Derivatives61% GeneralIndustrial 28% Plastics/Polymers31% Salesby Application North America 22% Asia Pacific
Slide 27: Appendix D: Non-GAAP Reconciliation
Appendix D: 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 28: Reconciliation of Non-GAAP Data for 12 Months Ended September 30, 2017
Ashland Global Holdings Inc. and Consolidated SubsidiariesReconciliation of Non-GAAP Data for 12 Months Ended September 30, 2017 North America2__% Asia Pacific__% LatinAmerica/Other - _% Europe __% AshlandSpecialtyIngredients__% AshlandPerformanceMaterials__% Valvoline__% 1 Quarterly totals may not
Slide 29: Trademark notices
® Registered trademark, Ashland or its subsidiaries, registered in various countries™ Trademark, Ashland or its subsidiaries, registered in various countries
Ashland Global Holdings — Q4 2017 Earnings Presentation on 6ix