Ashland Inc. · NYSE:ASH
Ashland — Third Annual Longbow Research Paper, Packaging and Chemicals Conference (November 2009)
21 slides from Ashland's conference presentation, Nov 12, 2009
Slide 1: Third Annual Longbow Research Paper, Packaging and Chemicals Conference
Third Annual Longbow Research Paper, Packaging and Chemicals Conference November 12, 2009 Lamar M. Chambers, Senior Vice President and Chief Financial Officer
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 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based upon a number of assumptions, including those mentioned
Slide 3: Strong Leadership Positions in the Markets We Serve
Strong Leadership Positions in the Markets We Serve Ashland Ashland Ashland Ashland Ashland Ashland Aqualon Hercules Performance Consumer Distribution Functional Water Materials Markets Ingredients Technologies (Valvoline) #2 global #1 global #1 global leader #3 passenger-car #2 plastics producer pr
Slide 4: Corporate Profile
Corporate Profile Pro Forma Ongoing EBITDA1 by commercial Ashland unit NYSE Ticker Symbol: ASH Aqualon Functional Ingredients Total Employees: ~14,700 24% Ashland Hercules Outside North 33% Ashland Consumer Water Technologies America Markets 23% Number of Countries More 34% in Which Ashland than Has
Slide 5: Sales and Operating Revenue
Trailing 12 Months Pro Forma1 Sales and Operating Revenue By commercial unit Ashland Aqualon Functional Ingredients Ashland 11% Europe Distribution North 36% America 20% 68% 21% Ashland Consumer Markets 19% Latin America/ Other - 4% ~32 percent of total revenue comes from outside North America 1 For
Slide 6: Vision for the Future
Ashland Vision for the Future To be a leading, global specialty chemicals company that is a market leader in all major businesses •Building on three growth •Sharing three common platforms capabilities – Application expertise – Ashland Aqualon Functional – Formulation expertise Ingredients – Polymeri
Slide 7: Ashland Aqualon Functional Ingredients
For the 12 Months Ended Sept. 30, 2009 Coatings Pro Forma Revenue: $0.9 billion Construction 28% 20% Pro Forma Ongoing EBITDA: $202 Energy & Regulated Spec. million Pro Forma Ongoing EBITDA Margin: Industries Solutions 22.4% 29% 23% Business Overview Revenue Stumpwood Customers • Diversified, global
Slide 8: Aqualon Functional Ingredients Strategy
Ashland Aqualon Functional Ingredients Strategy • Use leadership position in cellulose ethers to drive growth through product innovation and geographic expansion • Invest in additional water-soluble polymers that can be • leveraged acrosscustomer Leverage deep multiplerelationships growth platforms
Slide 9: Ashland Hercules Water Technologies
For the 12 Months Ended Sept. 30, 2009 Growth Pro Forma Revenue: $1.8 billion 43% Pro Forma Ongoing EBITDA: $198 million Pro Forma Ongoing EBITDA Margin: Base 32% 11.0% Business Overview Revenue by Market • Growth – Commercial and – Packaging Utility institutional – Pulp 29% Functional – Food and be
Slide 10: Hercules Water Technologies Strategy
Ashland Hercules Water Technologies Strategy • Build upon leadership in specialty papermaking chemicals • through product-line market-focused Extend best-in-class, extension and geographic expansion business model to additional water-intensive verticals, leveraging core process chemical technologies
Slide 11: Ashland Performance Materials
Ashland Performance Materials A global leader in specialty chemicals For the 12 Months Ended Sept. 30, 2009 Business Overview Pro Forma Revenue: $1.1 billion • Auto manufacturers; foundries; Pro Forma Ongoing EBITDA: $77 pipe million and tank fabricators; packaging Pro Forma Ongoing EBITDA Margin: C
Slide 12: Performance Materials Strategy
Ashland Performance Materials Strategy • Use market insight and thermoset chemistry expertise to create innovative substitutes that are stronger, lighter and more resistant than traditional materials for transportation, construction and infrastructure markets • Use leadership position in unsaturated
Slide 13: Ashland Consumer Markets
Ashland Consumer Markets: A leading worldwide marketer of premium-branded automotive lubricants and chemicals For the 12 Months Ended Sept. 30, 2009 Business Overview Pro Forma Revenue: $1.7 billion • Retail auto parts stores and Pro Forma Ongoing EBITDA: $288 mass merchandisers who sell million Pro
Slide 14: Consumer Markets Strategy
Ashland Consumer Markets Strategy • Use superior consumer insight to create channel-focused solutions that leverage the Valvoline brand • Build brand loyalty in key growth segments within D-I-Y channel, such as youth and Hispanics, through highly targeted advertising, promotions and programs • Conti
Slide 15: Ashland Distribution
Ashland Distribution A leading North American chemicals and plastics distributor For the 12 Months Ended Sept. 30, 2009 Business Overview Pro Forma Revenue: $3.0 billion Customers • Diversified customer base Pro Forma Ongoing EBITDA: $84 in North America and Europe million Pro Forma Ongoing EBITDA M
Slide 16: Distribution Strategy
Ashland Distribution Strategy • Continue focus on efficiency to create highest-value channel for customers and suppliers • Build best-in-class product offering by aligning with globally leading suppliers that: – have low-cost production – can ensure continuity of supply – are investing in their busi
Slide 17: Recent Volume Trends
17 Recent Volume Trends 120% 110% 100% 90% \ 80% 70% 60% Dec '07 Mar '08 Jun '08 Sep ‘08 Dec '08 Mar '09 Jun ‘09 Sep ‘09 Quarter ended ASHLAND.
Slide 18: Cost-Reduction Program Update
Fiscal Fourth Quarter 2009 Cost-Reduction Program Update • Achieved run-rate cost reductions of $355 million – $84 million achieved in Q4, including $51 million of selling, general and administrative expenses Cumulative Annualized Run- Headcount rate Reductions Savings (in millions) Original Cost- S
Slide 19: Investment Highlights
Investment Highlights • Among top 10 specialty chemicals companies worldwide • Long-term investment opportunities within specialty chemicals businesses • Continued emphasis on strong cash flow generation – Generated free cash flow1 of $831 million in FY 2009 • Reduced debt by $1 billion since Hercul
Slide 20: Investment Highlights
Investment Highlights • Successfully integrated Hercules business – Strong performance from Water Technologies – Cost-reduction targets achieved • $355 million in total Ashland run-rate savings achieved at September 30 – $400 million of total cost reductions, roughly two-thirds permanent • Ashland i
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