Ashland Inc. · NYSE:ASH
Ashland — Ashland Global Holdings — Q2 2019 Earnings Presentation
26 slides from Ashland's earnings presentation, Apr 30, 2019
Slide 1: Second-Quarter Fiscal 2019 Earnings
Second-Quarter Fiscal 2019 Earnings April 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: Second Quarter Summary
Second Quarter Summary a Ashland always solving
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 1% including a -3 percentage point (ppt
Slide 5: Specialty Ingredients Adjusted Results Summary
Specialty Ingredients Adjusted Results Summary1 Highlights & Key Drivers Sales down 1% including a -3 ppt impact from currency and -1 ppt impact from the Colgate oral-care reformulation2 Continued pricing above raw-material inflation Gross profit negatively impacted by foreign currency and product m
Slide 6: Specialty Ingredients Sales Trends by End Market
Specialty Ingredients Sales Trends by End Market Performance Specialties Average USD / EUR of $1.13 in current quarter compared to $1.23 in prior-year period. 2018 results restated to 2019 foreign exchange rates. End Market Commentary Sales grew 3% excluding the impact of foreign currency (-3 ppts2)
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, gross profit and EBITDA increased due to higher volumes and improved pricing compared to prior year Sales up 15% to $
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). Outlook inclusive of an estimated $40 million of separation and restructuring-related costs. Key Drive
Slide 10: Cost Reduction Targets
Achieved $70 million run-rate as of March 31st; 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 savings in FY2019 ~
Slide 11: Third-Quarter Fiscal 2019 Outlook
Highlights Expect Q3 adjusted EPS1 in the range of $0.80 - $0.90 Outlook assumes effective tax rate of 15 percent Outlook reflects discontinued operations accounting for Composites and the Marl BDO facility Key Drivers Low single-digit increase in Specialty Ingredients’ year-over-year Adjusted EBITD
Slide 12: Appendix A: Key Items and Balance Sheet
Appendix A: Key Items and Balance Sheet
Slide 13: Second Fiscal Quarter Key Items Affecting Income
Second Fiscal Quarter – Continuing Operations Key Items Affecting Income ($ 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 $-20 $-12 $-32 $-29 $-0.46 Proxy costs -5
Slide 14: Liquidity and Net Debt
Liquidity and Net Debt ($ in millions)
Slide 15: Appendix B: Business Profiles 2019
Appendix B: Business Profiles 12 Months Ended March 31, 2019
Slide 16: Specialty Ingredients Sales by Market
Specialty Ingredients Sales by Market1 For 12 Months Ended March 31, 2019 Sales: $2.5 billion Adjusted EBITDA: $575 million Adjusted EBITDA Margin: 23.3% Sales by Product Cellulosics 35% PVP 17% Adhesives 14% North America 39% Asia Pacific 19% Europe 33% Latin America/ Other – 9% 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 6 Months Ended March 31, 2019 North America2 __% Asia Pacific __% Latin America/ Other - _% Europe __% Ashland Specialty Ingredients __% Ashland Performance Materials __% Valvoline __% 1Quarterly totals ma
Slide 19: Segment Components of Key Items, Q2 2019
Ashland Global Holdings Inc. and Consolidated Subsidiaries Segment Components of Key Items for Applicable Income Statement Captions for 3 Months Ended March 31, 2019 North America2 __% Asia Pacific __% Latin America/ Other - _% Europe __% Ashland Specialty Ingredients __% Ashland Performance Materia
Slide 20: Segment Components of Key Items, Q2 2018
Ashland Global Holdings Inc. and Consolidated Subsidiaries Segment Components of Key Items for Applicable Income Statement Captions for 3 Months Ended March 31, 2018 North America2 __% Asia Pacific __% Latin America/ Other - _% Europe __% Ashland Specialty Ingredients __% Ashland Performance Materia
Slide 21: 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 March 31, 2019 and 2018 North America2 __% Asia Pacific __% Latin America/ Other - _% Europe __% Ashland Specialty Ingredients __% Ashland Perf
Slide 22: Reconciliation of Adjusted EBITDA
Ashland Global Holdings Inc. Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended March 31, 2019 and 2018 North America2 __% Asia Pacific __% Latin America/ Other - _% Europe __% Ashland Specialty Ingredients __% Ashland Performance Materials __% Valvoline __% ($ millions) 1Depreciat
Slide 23: Adjusted EBITDA: Specialty Ingredients, Intermediates and Solvents
Specialty Ingredients, Intermediates and Solvents Reconciliation of Non-GAAP Data – Adjusted EBITDA for 3 Months Ended March 31, 2019 and 2018 North America2 __% Asia Pacific __% Latin America/ Other - _% Europe __% Ashland Specialty Ingredients __% Ashland Performance Materials __% Valvoline __% ($
Slide 24: 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 March 31, 2019 and 2018 North America2 __% Asia Pacific __% Latin America/ Other - _% Europe __% Ashland Specialty Ingredients __% Ashland Perfor
Slide 25: 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 March 31, 2019 and 2018 North America2 __% Asia Pacific __% Latin America/ Other - _% Europe __% Ashland Specialty Ingredients __% Ashland P
Slide 26: Trademark Notice
® Registered trademark, Ashland or its subsidiaries, registered in various countries ™ Trademark, Ashland or its subsidiaries, registered in various countries
Ashland Global Holdings — Q2 2019 Earnings Presentation on 6ix