Ashland Inc. · NYSE:ASH
Ashland — Ashland Global Holdings — Q4 2016 Earnings Presentation
25 slides from Ashland's earnings presentation, Nov 8, 2016
Slide 1: Fourth-Quarter Fiscal 2016 Earnings
Fourth-Quarter Fiscal 2016 Earnings November 8, 2016 / efficacy usability allure integrity profitability ® 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 s
Slide 3: Fiscal Fourth Quarter 2016 Highlights
* Fiscal Fourth Quarter 2016Highlights1 Reported GAAP loss from continuing operations of $4.40 per diluted shareAdjusted earnings of $1.52 vs. $1.62 per diluted share in prior yearConsistent operating income and lower share count more than offset by higher interest expense and effective tax rateAdju
Slide 4: Consolidated Income Statement
* Consolidated Income Statement Ashland will report consolidated results for each quarter that Ashland maintains a controlling interest in Valvoline as of the last day of the quarterFor more information on Valvoline results, refer to the Valvoline Inc. fourth-quarter earnings release dated November
Slide 5: 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 22 cents higher, or $1.74 per diluted share
Slide 6: Adjusted Results Summary
* Adjusted Results Summary1 Ashland‘s earnings releases dated November 8, 2016, and July 26, 2016, available on Ashland's website at http://investor.ashland.com, reconcile adjusted amounts to amounts reported under GAAP. The three months ended September 30, 2016 excludes net income attributable to n
Slide 7: Ashland Specialty Ingredients Adjusted Results Summary
* Ashland Specialty IngredientsAdjusted Results Summary1 Volume growth across numerous end markets for both consumer and industrial specialtiesAdjusted EBITDA nearly in-line with prior year Ashland‘s earnings releases dated November 8, 2016, and July 26, 2016, available on Ashland's website at http:
Slide 8: Ashland Performance Materials Adjusted Results Summary
* Ashland Performance MaterialsAdjusted Results Summary1 Composites operating results consistent with prior yearEBITDA decline due almost entirely to I&S pricing and the unplanned facility outage Ashland‘s earnings releases dated November 8, 2016, and July 26, 2016, available on Ashland's website at
Slide 9: Fiscal Fourth Quarter 2016 Corporate Items
* Fiscal Fourth Quarter 2016Corporate Items Corporate operating income of $11 millionExcluding Valvoline, Ashland FY 2017 expectation of $30-$35 million expenseNet interest expense, excluding accelerated debt issuance cost amortization, of $47 millionExcluding Valvoline, Ashland FY 2017 expectation
Slide 10: Appendix A: Bridges
Appendix A: Bridges of Ashland
Slide 11: Ashland Q4 FY 2015 vs. Q4 FY 2016 Revenue and Adjusted EBITDA Bridges
* Ashland Q4 FY 2015 vs. Q4 FY 2016Revenue and Adjusted EBITDA Bridges 0% Q4 2015 Volume / Mix 1,280 1,248 ($ millions)Preliminary Volume / mix equal to prior year; raw material pass through primary driver to lower pricing except I&S where prices remained well below prior year Adjusted EBITDA of $25
Slide 12: Ashland Specialty Ingredients Revenue and Adjusted EBITDA Bridges
* Ashland Specialty IngredientsRevenue and Adjusted EBITDA Bridges 1% Q4 2015 Volume / Mix 540 532 ($ millions)Preliminary Volume growth across numerous end markets for both consumer and industrial specialtiesVolumes offset by slightly lower mix of some higher-margin productsAdjusted EBITDA nearly e
Slide 13: Ashland Performance Materials Revenue and Adjusted EBITDA Bridges
* Ashland Performance MaterialsRevenue and Adjusted EBITDA Bridges (4%) Q4 2015 Volume / Mix 256 222 ($ millions)Preliminary Composites operating results consistent with prior yearEBITDA decline due almost entirely to I&S pricing and the unplanned facility outage (9%) (0%) 0% Revenue Price FX Acq/Di
Slide 14: Appendix B: Volume Trends and Liquidity and Net Debt
Appendix B: Volume Trends and Liquidity and Net Debt
Slide 15: Normalized Volume Trends
* Period Ended 1 Excludes volumes associated with divestitures of elastomers and biocides and exited redispersible powders (RDP) product line for all periods. Rolling Four Quarters Normalized Volume Trends1
Slide 16: Liquidity and Net Debt
* Liquidity and Net Debt ($ in millions) Key Developments:The remaining $1,045 million Ashland Term Loan was paid down completely and retired during Q4’16Ashland’s Revolving facility was reduced from $1,200 million to $800 million
Slide 17: Scheduled Debt Payments
* Scheduled Debt Payments Valvoline Ashland ($ in millions)
Slide 18: Appendix C: Business Profiles
Appendix C: Business Profiles 12 Months Ended September 30, 2016
Slide 19: Corporate Profile: Sales by Business Unit and Geography
* Corporate Profile By business unit By geography 1 For 12 months ended September 30, 2016.2 Ashland includes only U.S. and Canada in its North America designation. North America253% Asia Pacific16% LatinAmerica/Other - 7% Europe 24% AshlandSpecialtyIngredients42% AshlandPerformanceMaterials19% Valv
Slide 20: Corporate Profile: Adjusted EBITDA
* Corporate Profile For 12 months ended September 30, 2016 including Valvoline. See Appendix D for reconciliation to amounts reported under GAAP.Excludes Valvoline. NYSE Ticker Symbol: ASH Total Employees2: ~6,000 Outside North America ~50% Number of Countries in Which Ashland Has Sales: More than 1
Slide 21: Ashland Specialty Ingredients: A Global Leader of Cellulose Ethers
* Ashland Specialty Ingredients: A global leader of cellulose ethers, vinyl pyrrolidones and biofunctionals Salesby Market2 For 12 Months Ended September 30, 2016Sales: $2.1 billionAdjusted EBITDA: $476 million1Adjusted EBITDA Margin: 22.8%1 Salesby Product Cellulosics 38% PVP19% Adhesive 16% North
Slide 22: Ashland Performance Materials: A Global Leader in Unsaturated Polyester Resins
* Ashland Performance Materials: A global leader in unsaturated polyester resins and vinyl ester resins Salesby Geography For 12 Months Ended September 30, 2016Sales: $930 millionEBITDA: $116 million1EBITDA Margin: 12.5%1 Salesby Product Composites72% Intermediates/Solvents 28% Construction: Residen
Slide 23: Appendix D: Non-GAAP Reconciliation
Appendix D: Non-GAAP Reconciliation1 Although Ashland provides forward looking guidance for adjusted EBITDA in this presentation, Ashland is not reaffirming or providing forward-looking guidance for U.S. GAAP reported financial measures or a reconciliation of forward-looking non-GAAP financial measu
Slide 24: Reconciliation of Non-GAAP Data for 12 Months Ended September 30, 2016
Ashland Global Holdings Inc. and Consolidated SubsidiariesReconciliation of Non-GAAP Data for 12 Months Ended September 30, 2016 North America2__% Asia Pacific__% LatinAmerica/Other - _% Europe __% AshlandSpecialtyIngredients__% AshlandPerformanceMaterials__% Valvoline__% 1 Quarterly totals may not
Slide 25: Ashland: always solving
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