Ashland Inc. · NYSE:ASH
Ashland — 2012 Credit Suisse Chemical and Ag Science Conference
23 slides from Ashland's conference presentation, Sep 11, 2012
Slide 1: 2012 Credit Suisse Chemical and Ag Science Conference
2012 Credit Suisse Chemical and Ag Science Conference September 11, 2012 Exhibit 99.1
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. In addition, Ashland may from time to time make forward-looking statements in its other filings wit
Slide 3: Ashland: Four Strong Businesses
Commercial Units Ashland Specialty Ingredients Ashland Water Technologies Ashland Performance Materials Ashland Consumer Markets Leading Products & Services #1 cellulose ethers, global leader in vinyl pyrrolidones #1 specialty papermaking chemicals #1 unsaturated polyester resins and vinyl ester res
Slide 4: Corporate Profile
Specialty Ingredients 34% Water Technologies 22% Performance Materials 20% Consumer Markets 24% Sales - $8.3 Billion Specialty Ingredients 57% Water Technologies 13% Performance Materials 12% Consumer Markets 18% EBITDA - $1.3 Billion Specialty Ingredients now contributes over half of EBITDA Corpora
Slide 5: Our History
Our History 2008: Acquired Hercules 2006: Divested Ashland Paving and Construction 2011: Acquired International Specialty Products (ISP) 2011: Divested Ashland Distribution 2005: Sold stake in Marathon Oil joint venture
Slide 6: Ashland's EBITDA Transformation
Divested Segments 69% Ashland Specialty Chemicals 15% Specialty Chemical Commercial Units 82% Ashland Consumer Markets 18% Creating a world-class specialty chemical company Ashland Consumer Markets 16% Ashland’s EBITDA Transformation Pre-Transformation: Pro Forma: TTM 1 1 Trailing twelve months as o
Slide 7: Ashland's Geographic Sales Transformation
North America 53% Asia Pacific 13% Latin America/ Other - 7% Europe 27% North America 88% Asia Pacific - 2% Latin America/ Other - 1% Europe 9% Nearly half of sales outside North America Ashland’s Geographic Sales Transformation Pre-Transformation: Pro Forma: TTM 1 1 Trailing twelve months as of Jun
Slide 8: Strategic Decisions Have Dramatically Expanded EBITDA Margins
Divested Distribution March 2011 Acquired Hercules November 2008 Acquired ISP August 2011 Strategic Decisions Have Dramatically Expanded EBITDA Margins 1 1 2006 through 2011 EBITDA margin as reported in the fiscal year noted and not adjusted for future transactions. EBITDA presented herein has been
Slide 9: Baseline Historical Performance
Good growth and performance Baseline Historical Performance 1 ($ in millions) 1 See Ashland’s November 15 th analyst day presentation for reconciliation to amounts reported under GAAP for periods 2007 through 2011. See Appendix for TTM reconciliation.
Slide 10: Ashland's Transformation - Looking Forward
2009 through 2011 Optimizing business mix 2012 through 2014 Focused business expansion Strategic shift from portfolio transformation and business alignment to focused growth and earnings expansion Ashland’s Transformation - Looking Forward • Divestitures – Ashland Distribution – Pinova – Drew Marine
Slide 11: 2014 EBITDA Goal of $1.7 Billion
2014 EBITDA Expectations TTM 6/30/2012 1 Major Drivers 2014 Ashland Specialty Ingredients $725 Ashland Water Technologies $166 Ashland Performance Materials $160 Ashland Consumer Markets $229 • Margin recovery • Expand share in North American markets • International growth • Base business growth, ec
Slide 12: Ashland Specialty Ingredients
Cellulosics 32% PVP 15% Solvents/ Intermediates 19% Pharma/ Nutrition 18% Personal Care 21% Specialty Performance 26% North America 34% Asia Pacific 18% Europe 39% Coatings 14% Industrial 21% Guar - 10% Other 10% Ashland Specialty I ngredients A global leader in water-soluble and film-forming polyme
Slide 13: Ashland Water Technologies
Process 27% Utility 29% Functional 44% Municipal - 9% Paper 58% Industrial 2 33% North America 45% Europe 34% Latin America/ Other - 9% Ashland Water Technologies: Providing specialty chemicals and services to water-intensive industries Sales by Geography For 12 Months Ended June 30, 2012 Sales: $1.
Slide 14: Water Technologies Update
Water Technologies Update · Business has stabilized, but has underperformed versus our expectations · Results should improve and we believe new management will aid in these efforts · John Panichella, President of Specialty Ingredients, will be involved for foreseeable future - Will lead Water Techno
Slide 15: Ashland Performance Materials
Composites 52% Adhesives 22% Elastomers 26% Construction: Residential 14% Marine 9% Pkg. & Converting 15% Construction: Industrial 27% North America 70% Asia Pacific - 8% Europe 18% Latin America/ Other 4% Transportation 29% Ashland Performance Materials Global leader in composite resins, specialty
Slide 16: Ashland Consumer Markets
Lubricants 85% Chemicals - 7% Do-It- Yourself 32% DIFM: Valvoline Instant Oil Change 15% DIFM: Installer Channel 21% Valvoline International 32% Asia Pacific ex Australia 32% Europe 28% Latin America/ Other - 15% Antifreeze 6% Filters 2% Australia 25% Ashland Consumer Markets: A leading worldwide ma
Slide 17: Cost-Reduction Program
Cost-Reduction Program · Targeting $90 million of annualized savings - $40 million of stranded and corporate costs - $50 million of ISP acquisition synergies · Achieved approximately $75 million of run-rate savings at end of June quarter - All stranded costs now removed - $35 million of ISP synergie
Slide 18: Adjusted Pro Forma 3Q Results Summary
Adjusted Pro Forma 3Q Results Summary 1 1 Ashland's earnings releases dated July 26 and April 24, 2012, available on Ashland's website at http://investor.ashland.com, reconcile adjusted amounts to amounts reported under GAAP. · Prior year includes ISP on a full-quarter, pro forma basis · Adjusting f
Slide 19: Tender Offer and Debt Refinancing
Tender Offer and Debt Refinancing · Announced tender offer for 9.125% senior notes - $650 million of par value - Offer price of $1,113.75 for each $1,000 principal · $572 million principal amount tendered - Settled August 7th · Approximately $660 million of cash required - Includes cost of refinanci
Slide 20: Interest Expense Savings
Interest Expense Savings · Tender offer and refinancing saves roughly $30 million of annual interest expense · Accounts receivable securitization program has also been completed - Interest rate arbitrage versus Term Loan B - Saves approximately $10 million of annual interest expense · Reduces fiscal
Slide 21: Investment Thesis
EBITDA growth of $500 million $1.2B $1.7B EPS growth of ~$6/share $3.90 $9.50 to $10.50 Investment Thesis · Transformation now complete · Margin profile now reflective of specialty chemical business · Consistent, predictable earnings and cash-flow generation · Positioned for significant growth and e
Slide 22: Reconciliation of Non-GAAP Data for 12 Months Ended June 30, 2012
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 12 Months Ended June 30, 2012 ($ millions, except percentages) 1 Calculation of adjusted EBITDA for each quarter has been reconciled within each quarterly earnings release filed with the SEC and posted on Ashland's websit
Slide 23: ™ Trademark, Ashland or its subsidiaries, registered in various countries
™ Trademark, Ashland or its subsidiaries, registered in various countries
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