Ashland Inc. · NYSE:ASH
Ashland — 22nd Annual Credit Suisse Chemical and Ag Science Conference (September 2009)
21 slides from Ashland's conference presentation, Sep 16, 2009
Slide 1: 22nd Annual Credit Suisse Chemical and Ag Science Conference
Exhibit 99.1 22nd Annual Credit Suisse Chemical and Ag Science Conference September 16, 2009 Lamar M. Chambers, Senior Vice President and Chief Financial Officer
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 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based upon a number of assumptions, including those mentioned
Slide 3: Strong Leadership Positions in the Markets We Serve
Strong Leadership Positions in the Markets We Serve Ashland Ashland Ashland Ashland Ashland Ashland Aqualon Hercules Performance Consumer Distribution Functional Water Materials Markets Ingredients Technologies (Valvoline) #2 global #1 global #1 global leader #3 passenger- #2 plastics producer produ
Slide 4: Corporate Profile
Corporate Profile Pro Forma Ongoing EBITDA1 • Specialty chemicals By Commercial Unit provide 60 percent Ashland Ashland Hercules Water Technologies of EBITDA Distribution 11% 21% • More than 25 percent from renewable Ashland Consumer Ashland Aqualon materials Markets 29% Ingredients Functional 28% N
Slide 5: Sales and Operating Revenue
Trailing 12 Months' Pro Forma1 Sales and Operating Revenue By Commercial Unit Ashland Distribution 20% North Europe 37% America 21% 68% Ashland Consumer Markets Latin 18% America/ Other - 4% • 32 percent of total revenue comes from outside North America 1 For the 12 months ended June 30, 2009, inclu
Slide 6: Vision for the Future
Ashland Vision for the Future To be a leading, global specialty chemicals company that is a market leader in all major businesses •Building on three growth •Sharing three common platforms capabilities – Application expertise – Ashland Aqualon Functional – Formulation expertise Ingredients – Polymeri
Slide 7: Ashland Aqualon Functional Ingredients
For the 12 Months Ended June 30, 2009 Coatings Pro Forma Revenue: $1.0 billion Construction 26% 21% Pro Forma Ongoing EBITDA: $216 Energy & Regulated Spec. million Pro Forma Ongoing EBITDA Margin: Industries Solutions 21.6% Business Overview 28% 25% Revenue Customers • Diversified, global customer b
Slide 8: Aqualon Functional Ingredients Strategy
Ashland Aqualon Functional Ingredients Strategy • Use leadership position in cellulose ethers to drive growth through product innovation and geographic expansion • Invest in additional water-soluble polymers that can be • leveraged across Leverage deep multiplerelationships customer growth platforms
Slide 9: Ashland Hercules Water Technologies
Ashland Hercules Water Technologies A major global supplier of process and functional chemicals For the 12 Months Ended June 30, Business Overview 2009 $1.9 billion Pro Forma Revenue: Pro Forma Ongoing EBITDA: $165 • Pulp and paper processing million Pro Forma Ongoing EBITDA Margin: • Industrial and
Slide 10: Hercules Water Technologies Strategy
Ashland Hercules Water Technologies Strategy • Build upon leadership in specialty papermaking chemicals • through product-line market-focused Extend best-in-class, extension and geographic business model expansion to additional water-intensive verticals, leveraging core process chemical technologies
Slide 11: Ashland Performance Materials
Ashland Performance Materials A global leader in specialty chemicals For the 12 Months Ended June 30, Business Overview 2009 $1.3 billion Pro Forma Revenue: • Auto manufacturers; foundries; Pro Forma Ongoing EBITDA: $81 pipe million Pro Forma Ongoing EBITDA Margin: and tank fabricators; packaging 6.
Slide 12: Performance Materials Strategy
Ashland Performance Materials Strategy • Use market insight and thermoset chemistry expertise to create innovative substitutes that are stronger, lighter and more resistant than traditional materials for transportation, construction and infrastructure markets • Use leadership position in unsaturated
Slide 13: Ashland Consumer Markets
Ashland Consumer Markets: A leading worldwide marketer of premium-branded automotive lubricants and For the 12 Months Ended June 30, 2009 chemicals Pro Forma Revenue: $1.7 billion Business Overview Pro Forma Ongoing EBITDA: $227 • Retail auto parts stores and mass merchandisers who sell million Pro
Slide 14: Finished Lubricants Market Structure
Ashland Consumer Markets Finished Lubricants Market Structure U.S. Passenger-Car Motor Oil Market Do-It-Yourself Channel: Do-It-For-Me Channel: ~25 percent ~75 percent Three brands represent Four companies represent ~50 percent of segment: ~90 percent of segment: • Castrol (BP) • Shell (Shell, Pennz
Slide 15: Consumer Markets Strategy
Ashland Consumer Markets Strategy • Use superior consumer insight to create channel- focused • solutions thatloyalty Build brand leverage the Valvoline in key brand within growth segments D-I-Y channel, such as youth and Hispanics, through highly targeted advertising, promotions and programs • Conti
Slide 16: Ashland Distribution
Ashland Distribution A leading North American chemicals and plastics distributor For the 12 Months Ended June 30, 2009 Business Overview Pro Forma Revenue: $3.4 billion • Diversified customer base Pro Forma Ongoing EBITDA: $88 Customers in North America and Europe million Pro Forma Ongoing EBITDA Ma
Slide 17: Distribution Strategy
Ashland Distribution Strategy • Continue focus on efficiency to create highest-value channel for customers and suppliers • Build best-in-class product offering by aligning with globally leading suppliers that: – have low-cost production – can ensure continuity of supply – are investing in their busi
Slide 18: Recent Performance
Ashland Recent Performance • Overall, most markets showing some improvement sequentially • Sizeable cost increases in propylene chain and • significant volatility Price increases in benzene in process in most businesses, including Consumer Markets • Completed sale of Drew Marine 18
Slide 19: 2010 Outlook
Ashland 2010 Outlook • Expect to fully realize ~$400 million of previously announced cost savings • $200 million of capital expenditures forecasted • Expecting increase in book pension expense 19
Slide 20: Investment Highlights
Investment Highlights • Among top 10 specialty chemicals companies worldwide • Continued emphasis on strong cash flow generation – Generated cash flows from operating activities of $649 million YTD June • Management committed to conservative financing structure – Reduced debt by $616 million since H
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Ashland — 22nd Annual Credit Suisse Chemical and Ag Science Conference (September 2009) on 6ix