Slide 1: Second-Quarter Fiscal 2016 Earnings
Second-Quarter Fiscal 2016 EarningsApril 26, 2016 ® Registered trademark, Ashland or its subsidiaries, registered in various countries™ Trademark, Ashland or its subsidiaries, registered in various cou ntries
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 Second Quarter 2016 Highlights
Fiscal Second Quarter 2016Highlights1 Reported earnings from continuing operations of $1.38 per diluted shareAdjusted earnings declined 10% to $1.83 vs. $2.03 per diluted share in prior yearAdjusted EBITDA of $274 million vs. $301 million in prior yearAs expected, headwinds from currency, energy end
Slide 4: Fiscal Second Quarter – Continuing Operations Key Items Affecting Income
Fiscal Second Quarter – Continuing OperationsKey Items Affecting Income Excluding intangible amortization, adjusted EPS would have been 22 cents higher, or $2.05
Slide 5: Adjusted Results Summary
Adjusted Results Summary1 As expected, headwinds are receding; currency, energy end markets and divestitures2 were ~$60 million headwind to salesFavorable business mix and margins offset by increased investment in digital technology and promotions at Valvoline 1 Ashland‘s earnings releases dated Apr
Slide 6: Ashland Specialty Ingredients Adjusted Results Summary
Ashland Specialty IngredientsAdjusted Results Summary1 Volume and share gains in numerous core growth end marketsDeveloped markets remain strong, offset by weaker emerging regionsBusiness trends improved throughout the course of the quarter 1 Ashland's earnings releases dated April 26, 2016, and Jan
Slide 7: Ashland Performance Materials Adjusted Results Summary
Ashland Performance Materials Adjusted Results Summary1 Strong volumes in Europe led by residential construction applicationsVolume and pricing pressure in other regions of the worldAs expected, weak volumes and margins within I&S 1 Ashland's earnings releases dated April 26, 2016, and January 25, 2
Slide 8: Valvoline Results Summary
ValvolineResults Summary1 Continued execution against strategic objectives leading to the tenth consecutive quarter of year-over-year earnings growthSuccessfully closed Oil Can Henry’s acquisition on February 1st, adding 89 quick lube locations in the US Pacific Northwest 1 Ashland's earnings releas
Slide 9: Fiscal Second Quarter 2016 Corporate Items
Fiscal Second Quarter 2016Corporate Items Adjusted corporate operating income of $1 millionNet interest expense of $43 millionFY 2016 expectation of approximately $170-$180 millionAdjusted effective tax rate of 22%FY 2016 expectation at the upper end of the 24%-26% rangeTrade Working Capital1 for th
Slide 10: Appendix A: Bridges
ASHLAND. Appendix A: Bridges
Slide 11: Ashland Revenue Bridge Q2 FY 2015 vs. Q2 FY 2016
Ashland Q2 FY 2015 vs. Q2 FY 2016Revenue Bridge 1% Q2 2015 Volume Q2 2016 Currency -5% 1,350 1,247 Price -2% Acq/Div/Other1 -1% ($ millions)Preliminary Headwinds from currency, energy markets and divestitures represented ~$60 million headwind to overall salesRaw material pass through was primary dri
Slide 12: Ashland Adjusted EBITDA Bridge
Ashland Q2 FY 2015 vs. Q2 FY 2016Adjusted EBITDA Bridge 4 Q2 2015 Volume/Mix Q2 2016 Currency Translation Margin (7) 301 274 SG&AExpenses (15) (2) Other (7) ($ millions)Preliminary Gains in volume / mix led by strong Valvoline resultsForeign currency headwinds receded to $2 million
Slide 13: Ashland Specialty Ingredients Adjusted EBITDA Bridge
Ashland Specialty Ingredients Adjusted EBITDA Bridge Q2 2015 Volume/ Mix Q2 2016 Currency Translation Margin SG&AExpenses Q2 FY 2015 versus Q2 FY 2016 (12) 1 (1) 127 Energy end market represents $4 million of Volume/MixDivestitures and exited product lines (biocides and RDP) included in the Other ca
Slide 14: Ashland Performance Materials Adjusted EBITDA Bridge
Ashland Performance MaterialsAdjusted EBITDA Bridge Q2 2015 Volume/ Mix Q2 2016 Currency Translation Margin SG&AExpenses Q2 FY 2015 versus Q2 FY 2016 0 (15) 1 Other 3 33 I&S pricing accounts for the majority of margin impactComposites volumes soft but margins better than expected Planned Marl BDO sh
Slide 15: Valvoline Adjusted EBITDA Bridge
ValvolineAdjusted EBITDA Bridge Q2 FY 2015 versus Q2 FY 2016 ($ millions)Preliminary 5 (1) 0 (11) 115 106 16 Strong DIY and VIOC results, lower input costs, disciplined margin management and good volume/mix key to EBITDA growthInvestments in promotions and advertising, digital technology and employe
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. Includes volumes associated with OCH International, Inc. ASI and APM reflect realignment of adhesives and intermediat
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 March 31, 2016
Slide 20: Corporate Profile: Sales by Business Unit and Geography
Corporate Profile By business unit By geography 1 For 12 months ended March 31, 2016.2 Ashland includes only U.S. and Canada in its North America designation. North America253% Asia Pacific16% LatinAmerica/Other - 7% Europe 24% AshlandSpecialtyIngredients42% AshlandPerformanceMaterials20% Valvoline3
Slide 21: Corporate Profile: Adjusted EBITDA
Corporate Profile 1 For 12 months ended March 31, 2016. See Appendix D for reconciliation to amounts reported under GAAP. NYSE Ticker Symbol: ASH Total Employees: ~11,000 Outside North America ~30% Number of Countries in Which Ashland Has Sales: More than 100 AshlandSpecialtyIngredients47% Valvoline
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 March 31, 2016Sales: $2.1 billionAdjusted EBITDA: $487 million1Adjusted EBITDA Margin: 22.9%1 Salesby Product Cellulosics 38% PVP19% Adhesive 16% North Americ
Slide 23: Ashland Performance Materials
Ashland Performance Materials Global leader in unsaturated polyester resins and vinyl ester resins Salesby Geography For 12 Months Ended March 31, 2016Sales: $1.0 billionEBITDA: $130 million1EBITDA Margin: 12.9%1 Salesby Product Composites71% Intermediates/Solvents 29% Construction: Residential13% M
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 March 31, 2016Sales: $1.9 billionEBITDA: $429 million1EBITDA Margin: 22.2%1 Salesby Product Lubricant488% Chemicals3 – 5% Do-It-Yourself29%
Slide 25: Appendix D: Non-GAAP Reconciliation
Appendix D: Non-GAAP Reconciliation
Slide 26: Reconciliation of Non-GAAP Data for 12 Months Ended March 31, 2016
Ashland Inc. and Consolidated SubsidiariesReconciliation of Non-GAAP Data for 12 Months Ended March 31, 2016 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 wi
Slide 27: Ashland closing slide
ASHLARD. With good chemistry great things happen.”