Ashland Inc. · NYSE:ASH
Ashland — Ashland Global Holdings — Q3 2019 Earnings Presentation
26 slides from Ashland's earnings presentation, Jul 30, 2019
Slide 1: Third-Quarter Fiscal 2019 Earnings
Third-Quarter Fiscal 2019 Earnings July 30, 2019 / efficacy usability allure integrity profitability Exhibit 99.2
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, 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: Third Quarter Summary
Third Quarter Summary <fas hland always solvit
Slide 4: Adjusted Results Summary
Ashland Global Holdings Inc. Adjusted Results Summary1 Highlights & Key Drivers Reflects discontinued operations accounting for Composites and Marl butanediol (BDO) facility; continuing operations includes Specialty Ingredients and Lima BDO facility Sales down 4% including a -2 percentage point (ppt
Slide 5: Specialty Ingredients Adjusted Results Summary
Specialty Ingredients Adjusted Results Summary1 Highlights & Key Drivers Sales down 4% including a -2 ppt impact from currency and -1 ppt impact from the Colgate oral-care reformulation2 Positive impact of pricing vs. raw-material costs Gross profit negatively impacted by lower sales and unfavorable
Slide 6: Specialty Ingredients Sales Trends by End Market
Specialty Ingredients Sales Trends by End Market Performance Specialties Average USD / EUR of $1.12 in current quarter compared to $1.19 in prior-year period. 2018 results restated to 2019 foreign exchange rates. End Market Commentary Sales declined 1% excluding the impact of foreign currency (-2 pp
Slide 7: Intermediates & Solvents Adjusted Results Summary
Intermediates & Solvents Adjusted Results Summary1 Highlights & Key Drivers Reflects results of the Lima, Ohio facility only; Marl facility reported in discontinued operations Sales and gross profit impacted by changing market demand EBITDA of $8 million consistent with prior year EBITDA margin incr
Slide 8: Outlook Summary
Outlook Summary <fas hland always solvit
Slide 9: Fiscal Year 2019 Outlook
Ashland Global Holdings Inc. Fiscal Year 2019 Outlook Definition of free cash flow: operating cash flow less capital expenditures and other items Ashland has deemed non-operational (if applicable). Updated Outlook inclusive of an estimated $60 million of separation and restructuring-related costs. K
Slide 10: Cost Reduction Targets
Achieved approximately $85 million run-rate as of June 30th; Remain on track to achieve all cost reduction program targets Ashland Global Holdings Inc. Cost Reduction Targets Expected Timing ~$20 million run rate2 as of 9/30/18 ~$50 million run rate2 as of 12/31/18 ~$60 - $70 million realized saving
Slide 11: Fourth-Quarter Fiscal 2019 Outlook
Highlights Expect Q4 adjusted EPS1 in the range of $0.92 - $1.02 Outlook assumes effective tax rate of 13 percent Outlook reflects discontinued operations accounting for Composites and the Marl BDO facility Key Drivers Expect overall sales to be down in most Specialty Ingredients end markets and app
Slide 12: Appendix A: Key Items and Balance Sheet
Appendix A: Key Items and Balance Sheet
Slide 13: Third Fiscal Quarter Continuing Operations Key Items Affecting Income
Third Fiscal Quarter – Continuing Operations Key Items Affecting Income ($ in millions, except EPS) Total Preliminary Specialty Ingredients I&S UnallocatedandOther Pre-tax After-tax After-tax earnings per Share 2019 Restructuring, separation and other costs $-12 $-12 $-10 $-0.14000000000000001 Envir
Slide 14: Liquidity and Net Debt
Liquidity and Net Debt ($ in millions)
Slide 15: Appendix B: Business Profiles 2019
Appendix B: Business Profiles 12 Months Ended June 30, 2019
Slide 16: Specialty Ingredients Sales by Market
Specialty Ingredients Sales by Market2 For 12 Months Ended June 30, 2019 Sales: $2.4 billion Adjusted EBITDA: $566 million1 Adjusted EBITDA Margin: 23.2%1 Sales by Product Cellulosics 35% PVP 17% Adhesives 14% North America 40% Asia Pacific 19% Europe 33% Latin America/ Other – 8% Actives – 6% Vinyl
Slide 17: Appendix C: Non-GAAP Reconciliation
Appendix C: 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 18: Reconciliation of Non-GAAP Data
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 9 Months Ended June 30, 2019 North America2 __% Asia Pacific __% Latin America/ Other - _% Europe __% Ashland Specialty Ingredients __% Ashland Performance Materials __% Valvoline __% 1Quarterly totals may
Slide 19: Segment Components of Key Items, Q3 2019
Ashland Global Holdings Inc. and Consolidated Subsidiaries Segment Components of Key Items for Applicable Income Statement Captions for 3 Months Ended June 30, 2019 North America2 __% Asia Pacific __% Latin America/ Other - _% Europe __% Ashland Specialty Ingredients __% Ashland Performance Material
Slide 20: Segment Components of Key Items, Q3 2018
Ashland Global Holdings Inc. and Consolidated Subsidiaries Segment Components of Key Items for Applicable Income Statement Captions for 3 Months Ended June 30, 2018 North America2 __% Asia Pacific __% Latin America/ Other - _% Europe __% Ashland Specialty Ingredients __% Ashland Performance Material
Slide 21: Reconciliation of Non-GAAP Data – Free Cash Flow and Adjusted Operating Income
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Free Cash Flow and Adjusted Operating Income for 3 Months Ended June 30, 2019 and 2018 North America2 __% Asia Pacific __% Latin America/ Other - _% Europe __% Ashland Specialty Ingredients __% Ashland Perfo
Slide 22: Reconciliation of Non-GAAP Data – Adjusted EBITDA
Ashland Global Holdings Inc. Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended June 30, 2019 and 2018 North America2 __% Asia Pacific __% Latin America/ Other - _% Europe __% Ashland Specialty Ingredients __% Ashland Performance Materials __% Valvoline __% ($ millions) 1Depreciati
Slide 23: Specialty Ingredients, Intermediates and Solvents Adjusted EBITDA Reconciliation
Specialty Ingredients, Intermediates and Solvents Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended June 30, 2019 and 2018 North America2 __% Asia Pacific __% Latin America/ Other - _% Europe __% Ashland Specialty Ingredients __% Ashland Performance Materials __% Valvoline __% ($
Slide 24: Reconciliation of Adjusted Income from Continuing Operations
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Adjusted Income from Continuing Operations for 3 Months Ended June 30, 2019 and 2018 North America2 __% Asia Pacific __% Latin America/ Other - _% Europe __% Ashland Specialty Ingredients __% Ashland Perform
Slide 25: Reconciliation of Adjusted Diluted EPS from Continuing Operations
Ashland Global Holdings Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data – Adjusted Diluted EPS from Continuing Operations for 3 Months Ended June 30, 2019 and 2018 North America2 __% Asia Pacific __% Latin America/ Other - _% Europe __% Ashland Specialty Ingredients __% Ashland Pe
Slide 26: Trademark notices
® Registered trademark, Ashland or its subsidiaries, registered in various countries ™ Trademark, Ashland or its subsidiaries, registered in various countries
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