Slide 1: Fourth-Quarter Fiscal 2015 Earnings
Fourth-Quarter Fiscal 2015 EarningsNovember 3, 2015 ® 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 Fourth Quarter 2015 Highlights
Fiscal Fourth Quarter 2015Highlights1 Reported loss from continuing operations of $0.88 per shareAdjusted earnings grew 14% to $1.62 vs. $1.42 per share in prior yearAnother quarter of year-over-year adjusted EPS growthAdjusted EBITDA of $265 million vs. $272 million in prior yearCurrency and divest
Slide 4: Fiscal Fourth Quarter – Continuing Operations Key Items Affecting Income
Fiscal Fourth Quarter – Continuing OperationsKey Items Affecting Income Excluding intangible amortization, adjusted EPS would have been 20 cents higher, or $1.82
Slide 5: Adjusted Results Summary
Adjusted Results Summary1 Currency and divestitures2 were ~$180 million headwind to salesMix, margins and cost execution drove 300 basis-point increase in EBITDA margin 1 Ashland‘s earnings releases dated November 3, 2015, and July 29, 2015, available on Ashland's website at http://investor.ashland.
Slide 6: Ashland Specialty Ingredients Adjusted Results Summary
Ashland Specialty IngredientsAdjusted Results Summary1 Energy and foreign exchange (FX) were significant headwinds to salesBusiness and product mix, as well as manufacturing and SG&A cost execution, more than offset FX headwind, leading to 80-basis-point improvement in EBITDA margin 1 Ashland's earn
Slide 7: Ashland Performance Materials Adjusted Results Summary
Ashland Performance Materials Adjusted Results Summary1 Favorable margins in Composites offset by the Elasotmers divestiture, and foreign currency translationI&S plant shutdown in prior year reduced EBITDA by $8 million 1 Ashland's earnings releases dated November 3, 2015, and July 29, 2015, availab
Slide 8: Valvoline Results Summary
ValvolineResults Summary1 Continued execution against strategic objectives leading to another record fourth quarter for Valvoline segment earningsStrong results led by growth in VIOC and international channels 1 Ashland's earnings releases dated November 3, 2015, and July 29, 2015, available on Ashl
Slide 9: Fiscal Fourth Quarter 2015 Corporate Items
Fiscal Fourth Quarter 2015Corporate Items Pension and other post-retirement adjustment of $246 million, pre-taxNet interest expense of $38 millionAdjusted effective tax rate of 23%; full year rate of 23%FY 2016 expectation is 24%-26%Trade Working Capital1 finished the year at 18.8% of salesCapital e
Slide 10: Margin Profile Expectations FY 2016 and Long Term
Margin Profile ExpectationsFY 2016 and Long Term Execution and margin management expected to drive strong performance with ASH EBITDA margin exceeding 20% in 2016
Slide 11: Appendix A: Bridges
ASHLAND. Appendix A: Bridges
Slide 12: Ashland Q4 FY 2014 vs. Q4 FY 2015 Revenue Bridge
Ashland Q4 FY 2014 vs. Q4 FY 2015Revenue Bridge 1% Q4 2014 Volume Q4 2015 Currency -4% 1,538 1,280 Price -5% Acq/Div/Other1 -7% ($ millions)Preliminary Volume growth across key end markets offset by currency headwinds and divestitures; energy end market remains weakRaw material pass through was prim
Slide 13: Ashland Adjusted EBITDA Bridge
Ashland Q4 FY 2014 vs. Q4 FY 2015Adjusted EBITDA Bridge (3) Q4 2014 Volume/Mix Q4 2015 Currency Translation Margin 35 272 265 SG&AExpenses (13) (17) Other (9) ($ millions)Preliminary Strong margins contributed $35 million to EBITDA, more than offsetting currency headwindsElastomers divestiture inclu
Slide 14: Ashland Specialty Ingredients Adjusted EBITDA Bridge
Ashland Specialty Ingredients Adjusted EBITDA Bridge Q4 2014 Volume/ Mix Q4 2015 Currency Translation Margin SG&AExpenses Q4 FY 2014 versus Q4 FY 2015 0 (2) (1) 129 Divestitures and exited product lines (biocides and RDP) included in the Other categoryCurrency, driven by Euro, was an $11 million hea
Slide 15: Ashland Performance Materials Adjusted EBITDA Bridge
Ashland Performance MaterialsAdjusted EBITDA Bridge Q4 2014 Volume/ Mix Q4 2015 Currency Translation Margin SG&AExpenses Q4 FY 2014 versus Q4 FY 2015 (10) 20 (7) Other 1 33 Disciplined margin management in composites and I&S offset by weaker volumes and mix; Marl shutdown in prior-year periodOther c
Slide 16: Valvoline Adjusted EBITDA Bridge
ValvolineAdjusted EBITDA Bridge Q4 2014 Volume/ Mix Q4 2015 Currency Translation Margin SG&AExpenses Q4 FY 2014 versus Q4 FY 2015 Other ($ millions)Preliminary 11 (3) 0 (5) 97 87 7 Lower input costs, disciplined margin management and good volume/mix key to EBITDA growthCurrency was a moderate headwi
Slide 17: Appendix B: Volume Trends and Liquidity and Net Debt
Appendix B: Volume Trends and Liquidity and Net Debt
Slide 18: Normalized Volume Trends
Normalized Volume Trends1 Period Ended 1 Excludes volumes associated with divestitures of elastomers and biocides for all periods. Excludes volumes associated with exited redispersible powders (RDP) product line for all periods. ASI and APM reflect realignment of adhesives and intermediates and solv
Slide 19: Liquidity and Net Debt
Liquidity and Net Debt ($ in millions) Scheduled Debt Repaymentsby Fiscal Year
Slide 20: Appendix C: Business Profiles
Appendix C:Business Profiles 12 Months Ended September 30, 2015
Slide 21: Corporate Profile: Sales by Business Unit and Geography
Corporate Profile By business unit By geography 1 For 12 months ended September 30, 2015.2 Ashland includes only U.S. and Canada in its North America designation. North America253% Asia Pacific16% LatinAmerica/Other - 7% Europe24% AshlandSpecialtyIngredients42% AshlandPerformanceMaterials21% Valvoli
Slide 22: Corporate Profile
Corporate Profile 1 For 12 months ended September 30, 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 AshlandSpecialtyIngredients49% Valvo
Slide 23: Ashland Specialty Ingredients
Salesby Market2 Ashland Specialty Ingredients A global leader of cellulose ethers and vinyl pyrrolidones For 12 Months Ended September 30, 2015Sales: $2.3 billionAdjusted EBITDA: $527 million1Adjusted EBITDA Margin: 23.3%1 Salesby Product Cellulosics37% PVP18% Adhesive13% North America39% AsiaPacifi
Slide 24: Ashland Performance Materials
Ashland Performance Materials Global leader in unsaturated polyester resins and vinyl ester resins Salesby Geography For 12 Months Ended September 30, 2015Sales: $1.2 billionAdjusted EBITDA: $146 million1Adjusted EBITDA Margin: 12.6%1 Salesby Product Composites68% Intermediates/Solvents 28% Elastome
Slide 25: Valvoline
Valvoline: A leading worldwide producer and distributor of premium-branded lubricants and automotive chemicals International Salesby Region2 For 12 Months Ended September 30, 2015Sales: $2.0 billionAdjusted EBITDA: $411 million1Adjusted EBITDA Margin: 20.9%1 Salesby Product Lubricants86% Chemicals3
Slide 26: Appendix D: Non-GAAP Reconciliation
Appendix D: Non-GAAP Reconciliation
Slide 27: Reconciliation of Non-GAAP Data for 12 Months Ended September 30, 2015
Ashland Inc. and Consolidated SubsidiariesReconciliation of Non-GAAP Data for 12 Months Ended September 30, 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 filing
Slide 28: Ashland. With good chemistry great things happen.
ASHLARD. With good chemistry great things happen.”