Slide 1: Third-Quarter Fiscal 2015 Earnings Conference Call
Third-Quarter Fiscal 2015 Earnings Conference Call July 30, 2015
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: Opening Remarks
Opening Remarks Delivering against our core priorities Deliver against near and mid-term financial targets Take actions to reduce volatility Effectively allocate capital Conduct comprehensive strategic planning process 3
Slide 4: Fiscal Third Quarter 2015 Highlights
Fiscal Third Quarter 2015 Highlights1 Factors affecting year-over-year EBITDA ($, Millions) Sales Adj. EBITDA margin ($, Millions) $1,800 30% 22.3% 22 10 $1,605 21.2% $1,350 $1,350 $1,367 20% 298 298 319 (17) (11) (12) 290 18.6% $900 10% $450 $0 0% Q3 2014 Vol/ Margin SG&A Underlying FX Acq/Div Q3 2
Slide 5: Ashland Specialty Ingredients
Ashland Specialty Ingredients $, Millions Sales Vol/ Acq/ Q4 Outlook 1 PY Mix Price FX Div CY Revenues $550 - $560 million 653 -3% -1% -5% -1% 579 • FX sensitivity: ~$4.5mm per € cent EBITDA Vol/ PY Mix Margin SG&A FX Other CY EBITDA margin 23 - 23.5% • FX sensitivity: ~$1.2mm per € cent 142 -4% 6%
Slide 6: Ashland Performance Materials
Ashland Performance Materials $, Millions Sales Vol/ Acq/ Q4 Outlook PY Mix Price FX Div CY Revenues $255 - $265 million 420 -3% -6% -7% -19% 278 • Roughly in line with normal seasonality EBITDA Vol/ PY Mix Margin SG&A FX Other CY EBITDA margin 8% - 8.5% 53 -17% -7% 2% -4% -23% 27 Quarter Summary Ne
Slide 7: Valvoline
Valvoline $, Millions Sales Vol/ Acq/ Q4 Outlook PY Mix Price FX Div CY Revenues $475 - $485 million 532 2% -3% -4% 0% 510 • Pricing adjustments due to lower base oil are expected to offset volume growth EBITDA Vol/ PY Mix Margin SG&A FX Other CY EBITDA margin 19% - 20% 99 3% 17% 1% -3% -1% 116 Quar
Slide 8: Key Observations
Key Observations 1. Continued EBITDA margin improvement 2. Developing strategic plans to drive profitable growth 3. Maintain disciplined capital allocation strategies Committed to creating shareholder value 8
Slide 9: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 10: Reconciliation of Non-GAAP Data
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 12 Months Ended June 30, 2015 ($ millions, except percentages) 1 Sales Q3 15 Q2 15 Q1 15 Q4 14 Total Specialty Ingredients 579 583 561 635 2,358 Performance Materials 278 286 338 383 1,285 Valvoline 510 481 492 520 2,003
Slide 11: Ashland. With good chemistry great things happen.
ASHLARND. With good chemistry great things happen.