Slide 1: First-Quarter Fiscal 2016 Earnings Conference Call
First-Quarter Fiscal 2016 Earnings Conference Call January 26, 2016
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: Opening Remarks: Four Core Priorities in FY 2016
Opening Remarks Four Core Priorities in FY 2016 1. Drive operational and strategic gains 2. Improve cash conversion 3. Maintain disciplined capital allocation strategy 4. Create Two Great Companies 3
Slide 4: Fiscal First Quarter 2016 Highlights
Fiscal First Quarter 2016 Highlights1 ($, Millions) Sales Adj. EBITDA margin Factors affecting year-over-year EBITDA ($, Millions) $1,600 30% $1,391 $1,280 $1,163 13 $1,200 20% 262 (11) (3) 261 (9) 20.7% 21.2% (5) 247 18.8% $800 10% $400 $0 0% Q1 2015 Vol/ Margin SG&A Underlying FX Acq/Div Q1 2016 Q
Slide 5: Ashland Specialty Ingredients
Ashland Specialty Ingredients $, Millions Sales Vol/ Acq/ Q2 Outlook 2 PY Mix Price FX Div CY Revenues $515 - $535 million 561 -7% -2% -3% -3% 476 • FX sensitivity: ~$4.5mm per € cent EBITDA1 Vol/ Acq/Div PY Mix Margin SG&A FX /Other 2 CY EBITDA margin 23.5 – 24.5% • FX sensitivity: ~$1.2mm per € ce
Slide 6: Ashland Performance Materials
Ashland Performance Materials $, Millions Sales Vol/ Acq/ Q2 Outlook 2 PY Mix Price FX Div CY Revenues $235 - $255 million 338 -5% -10% -5% -12% 231 • Roughly in line with normal seasonality EBITDA1 Vol/ Acq/Div PY Mix Margin SG&A FX /Other 2 CY EBITDA margin 10.0 – 11.0% 42 -14% 9% 2% -2% -7% 37 Qu
Slide 7: Valvoline
Valvoline $, Millions Sales Vol/ Acq/ Q2 Outlook 2 PY Mix Price FX Div CY Revenues $480 - $490 million 492 5% -5% -4% -3% 456 • Roughly in line with normal seasonality EBITDA1 Vol/ Acq/Div EBITDA margin ~23% 2 PY Mix Margin SG&A FX /Other CY 92 10% 9% -6% -3% 0% 101 Quarter Summary Near-term Outlook
Slide 8: Valvoline: Agreement to Acquire Oil Can Henry's
Valvoline Announced Definitive Agreement to Acquire Oil Can Henry’s Accelerating quick-lube store growth and geographic footprint Announced agreement: • 14th largest US quick-lube network • 89 quick-lube centers • 47 company-owned • 42 franchised-owned • Attractive growth market for Valvoline • Oreg
Slide 9: Key Observations
Key Observations 1. Remain focused on core priorities in 2016 2. Taking actions to deliver results 3. Remain on track to create two great companies; additional announcements in the coming months Great team with a clear strategy and a proven track record of execution 9
Slide 10: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 11: Reconciliation of Non-GAAP Data
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 12 Months Ended December 31, 2015 ($ millions, except percentages) 1 Sales Q1 16 Q4 15 Q3 15 Q2 15 Total Specialty Ingredients 476 540 579 583 2,178 Performance Materials 231 256 278 286 1,051 Valvoline 456 484 510 481 1,
Slide 12: Ashland
ASHLAND. With good chemistry great things happen: