Slide 1: First-Quarter Fiscal 2016 Earnings
First-Quarter Fiscal 2016 EarningsJanuary 25, 2016 ® Registered trademark, Ashland or its subsidiaries, registered in various countries™ Trademark, Ashland or its subsidiaries, registered in various countries
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
Slide 3: Fiscal First Quarter 2016 Highlights
Fiscal First Quarter 2016Highlights1 Reported earnings from continuing operations of $1.38 per shareAdjusted earnings declined 3% to $1.41 vs. $1.46 per share in prior yearAdjusted EBITDA of $247 million vs. $262 million in prior yearCurrency, energy end market and divestitures – including exited pr
Slide 4: Fiscal First Quarter – Continuing Operations Key Items Affecting Income
Fiscal First Quarter – Continuing OperationsKey Items Affecting Income Excluding intangible amortization, adjusted EPS would have been 21 cents higher, or $1.62
Slide 5: Adjusted Results Summary
Adjusted Results Summary1 Currency, energy end markets and divestitures2 were ~$155 million headwind to salesBusiness mix, margins and cost execution drove 240 basis point increase in EBITDA margin 1 Ashland‘s earnings releases dated January 25, 2016, and November 3, 2015, available on Ashland's web
Slide 6: Ashland Specialty Ingredients Adjusted Results Summary
Ashland Specialty IngredientsAdjusted Results Summary1 Achieved gains in most core growth end marketsEnergy, foreign exchange (FX) and divestitures were significant headwinds to sales and EBITDA 1 Ashland's earnings releases dated January 25, 2016, and November 3, 2015, available on Ashland’s websit
Slide 7: Ashland Performance Materials Adjusted Results Summary
Ashland Performance Materials Adjusted Results Summary1 Favorable margins in Composites offset by generally weaker industrial volumesElastomers divestiture and FX represented a $3 million EBITDA headwind 1 Ashland's earnings releases dated January 25, 2016, and November 3, 2015, available on Ashland
Slide 8: Valvoline Results Summary
ValvolineResults Summary1 Continued execution against strategic objectives leading to another record first quarter for Valvoline segment earningsSigned definitive agreement to acquire Oil Can Henry’s and add 89 quick lube stores in the US Pacific Northwest; closing expected during fiscal Q2 1 Ashlan
Slide 9: Fiscal First Quarter 2016 Corporate Items
Fiscal First Quarter 2016Corporate Items Adjusted corporate income of $13 millionNet interest expense of $42 millionFY 2016 expectation of approximately $170-$180 millionAdjusted effective tax rate of 25%FY 2016 expectation at the upper end of the 24%-26% rangeTrade Working Capital1 for the quarter
Slide 10: Appendix A: Bridges
ASHLAND. Appendix A: Bridges
Slide 11: Ashland Q1 FY 2015 vs. Q1 FY 2016 Revenue Bridge
Ashland Q1 FY 2015 vs. Q1 FY 2016Revenue Bridge 0% Q1 2015 Volume Q1 2016 Currency -5% 1,391 1,163 Price -4% Acq/Div/Other1 -5% ($ millions)Preliminary Headwinds from currency, energy markets and divestitures continued, representing ~$155 million headwind to overall salesRaw material pass through wa
Slide 12: Ashland Adjusted EBITDA Bridge
Ashland Q1 FY 2015 vs. Q1 FY 2016Adjusted EBITDA Bridge (11) Q1 2015 Volume/Mix Q1 2016 Currency Translation Margin 13 262 247 SG&AExpenses (3) (9) Other (5) ($ millions)Preliminary Strong margins, reflecting strong price management, contributed $13 million to EBITDAForeign currency translation rema
Slide 13: Ashland Specialty Ingredients Adjusted EBITDA Bridge
Ashland Specialty Ingredients Adjusted EBITDA Bridge Q1 2015 Volume/ Mix Q1 2016 Currency Translation Margin SG&AExpenses Q1 FY 2015 versus Q1 FY 2016 (14) 1 (5) 94 Energy end market represents $8 million of Volume/MixDivestitures and exited product lines (biocides and RDP) included in the Other cat
Slide 14: Ashland Performance Materials Adjusted EBITDA Bridge
Ashland Performance MaterialsAdjusted EBITDA Bridge Q1 2015 Volume/ Mix Q1 2016 Currency Translation Margin SG&AExpenses Q1 FY 2015 versus Q1 FY 2016 (6) 4 (3) Other 1 37 Disciplined margin management in Composites offset by weaker BDO volumes and pricingOther category includes $2 million impact fro
Slide 15: Valvoline Adjusted EBITDA Bridge
ValvolineAdjusted EBITDA Bridge Q1 2015 Volume/ Mix Q1 2016 Currency Translation Margin SG&AExpenses Q1 FY 2015 versus Q1 FY 2016 Other ($ millions)Preliminary 8 (3) 0 (5) 101 92 9 Record Q1 earnings for ValvolineLower input costs, disciplined margin management and good volume/mix key to EBITDA grow
Slide 16: Appendix B: Volume Trends and Liquidity and Net Debt
Appendix B: Volume Trends and Liquidity and Net Debt
Slide 17: Normalized Volume Trends
Normalized Volume Trends1 Period Ended 1 Excludes volumes associated with divestitures of elastomers and biocides and exited redispersible powders (RDP) product line for all periods. ASI and APM reflect realignment of adhesives and intermediates and solvents for all periods. Rolling Four Quarters 2
Slide 18: Liquidity and Net Debt
Liquidity and Net Debt ($ in millions) Scheduled Debt Repaymentsby Fiscal Year
Slide 19: Appendix C: Business Profiles
Appendix C:Business Profiles 12 Months Ended December 31, 2015
Slide 20: Corporate Profile: By Business Unit, By Geography
Corporate Profile By business unit By geography 1 For 12 months ended December 31, 2015.2 Ashland includes only U.S. and Canada in its North America designation. North America252% Asia Pacific16% LatinAmerica/Other - 8% Europe24% AshlandSpecialtyIngredients42% AshlandPerformanceMaterials 20% Valvoli
Slide 21: Corporate Profile
Corporate Profile 1 For 12 months ended December 31, 2015. See Appendix D for reconciliation to amounts reported under GAAP. NYSE Ticker Symbol: ASH Total Employees: ~10,500 Outside North America ~30% Number of Countries in Which Ashland Has Sales: More than 100 AshlandSpecialtyIngredients47% Valvol
Slide 22: Ashland Specialty Ingredients: Sales by Market
Salesby Market2 Ashland Specialty Ingredients: A global leader of cellulose ethers, vinyl pyrrolidones and biofunctionals For 12 Months Ended December 31, 2015Sales: $2.2 billionAdjusted EBITDA: $502 million1Adjusted EBITDA Margin: 23.0%1 Salesby Product4 Cellulosics 38% PVP 19% Adhesive 15% North A
Slide 23: Ashland Performance Materials
Ashland Performance Materials Global leader in unsaturated polyester resins and vinyl ester resins Salesby Geography For 12 Months Ended December 31, 2015Sales: $1.1 billionEBITDA: $141 million1EBITDA Margin: 13.4%1 Salesby Product Composites71% Intermediates/Solvents 29% Construction: Residential 1
Slide 24: Valvoline: Premium-Branded Lubricants and Automotive Chemicals
Valvoline: A leading worldwide producer and distributor of premium-branded lubricants and automotive chemicals International Salesby Region2 For 12 Months Ended December 31, 2015Sales: $1.9 billionAdjusted EBITDA: $420 million1Adjusted EBITDA Margin: 21.8%1 Salesby Product Lubricants87% Chemicals3 –
Slide 25: Appendix D: Non-GAAP Reconciliation
Appendix D: Non-GAAP Reconciliation
Slide 26: Reconciliation of Non-GAAP Data for 12 Months Ended December 31, 2015
Ashland Inc. and Consolidated SubsidiariesReconciliation of Non-GAAP Data for 12 Months Ended December 31, 2015 1 Quarterly totals may not sum to actual results due to quarterly rounding conventions. Calculation of adjusted EBITDA for each quarter has been reconciled within certain financial filings
Slide 27: With good chemistry great things happen
ASHLARD. With good chemistry great things happen.”