Slide 1: First-Quarter Fiscal 2015 Earnings
First-Quarter Fiscal 2015 Earnings January 26, 2015 4
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 wards
Slide 3: Fiscal First Quarter 2015 Highlights
Fiscal First Quarter 2015 Highlights‘ + Reported EPS from continuing operations of $0.57 ~ Adjusted earnings of $1.46 vs. $1.12 per share in prior year * Sales of $1.4 billion, down 3% from year-ago period — Normalized for currency and divestitures, sales would have increased 1% + Adjusted EBITDA of
Slide 4: Fiscal First Quarter - Continuing Operations
Fiscal First Quarter —- Continuing Operations O° { Key Items Affecting Income : (6 in millions, except EPS) Operating Income Total Preliminary Ashland Ashland Specialty Performance Earnings Ingredients Materials Valvoline Pretax Aftertax per Share Loss on divestiture (85) (87)|___(0.82) Stock award
Slide 5: Adjusted Results Summary
Adjusted Results Summary’ OTK ) (Sin millions) Fiscal First Quarter Three months ended Preliminary Three months ended Dec. 31, Sept. 30, 2014 2013 Change | 2014 Change Sales $1391 $1,432 (3) % || $1,538 (10) % Gross profit as a percent of sales 294 % 268% 260 bp 278 % 160 bp Selling, general and adm
Slide 6: Ashland Specialty Ingredients
Ashland Specialty Ingredients ook \ Adjusted Results Summary’ hom (Sin millions) Fiscal First Quarter Three months ended Preliminary Three months ended Dec. 31, Sept. 30, 2014 2013 Change | 2014 Change Metric tons sold (in thousands) - Actives basis (2) % (12) % Sales $ 561 § 581 (3) % || $ 635 (12)
Slide 7: Ashland Performance Materials
Ashland Performance Materials lo C ) Adjusted Results Summary’ : (Sin millions) Fiscal First Quarter Three months ended Preliminary Three months ended Dec. 31, Sept. 30, 2014 2013 Change | 2014 Change Metric tons sold (in thousands) 137.9 (6) % 145.1 (11) % Sales $ 338 § 365 (7) % || $ 383 (12) % Gr
Slide 8: Valvoline
Valvoline Results Summary’ (Sin millions) Preliminary Fiscal First Quarter 2014 2013 Three months ended Dec. 31, Change Three months ended Sept. 30, 2014 Change Lubricant gallons (in millions) 38.9 38.6 1% (6) % Sales $ 492 $ 486 1% || $ 520 (5) % Gross profit as a percent of sales 333% 31.2% 210 bp
Slide 9: Fiscal First Quarter 2015 Corporate Items
Fiscal First Quarter 2015 Corporate Items Approximately $175 million in annualized cost savings achieved through the first quarter — Continue to expect substantially all savings to be realized by end of Q2 FY15 « Adjusted Effective tax rate of 25.0% — FY 2015 expectation now at 24-26% + Trade Workin
Slide 10: Appendix A: EBITDA Bridges
ASHLAND. Appendix A: EBITDA Bridges
Slide 11: Ashland Q1 FY 2014 vs. Q1 FY 2015 Adjusted EBITDA Bridge
Ashland Q1 FY 2014 vs. Q1 FY 2015 Adjusted EBITDA Bridge ($ millions) Preliminary 27 15 9 (8) (1 7) Q12014 Volume/Mix Margin SG&A Currency Other Q12015 Expenses Translation ¢ Stronger volumes and mix contributed $36 million to EBITDA « SG&A, driven by restructuring savings, resulted in $15 million t
Slide 12: Ashland Specialty Ingredients Adjusted EBITDA Bridge
Ashland Specialty Ingredients Adjusted EBITDA Bridge al epeimusne Q1 FY 2014 versus Q1 FY 2015 ry 5 4 4 (4) (1) Q12014 Volume! Margin SG&A Currency Other Q12015 Mix Expenses Translation ¢ Strong mix, good margins, and reduced SG&A led to $13 million tailwind ¢ Currency, driven by Euro, was a $4 mill
Slide 13: Ashland Performance Materials Adjusted EBITDA Bridge
Ashland Performance Materials Adjusted EBITDA Bridge &mitons) Q1 FY 2014 versus Q1 FY 2015 10 3 Sy a (2) 6) a Q12014 Volume! Margin SG&A Currency Other Q12015 Mix Expenses Translation « Good composites volumes and margin provided a tailwind to the quarter, more than offsetting BDO pricing decline «
Slide 14: Valvoline Adjusted EBITDA Bridge
Valvoline Adjusted EBITDA Bridge Gamers Q1 FY 2014 versus Q1 FY 2015 ry 13 2 === (1) (6) Q12014 Volume! Margin SG&A Currency Other Q12015 Mix Expenses Translation ¢ Strong mix and lower input costs primary drivers to EBITDA growth ¢ Prior year quarter benefitted from $6 million arbitration ruling on
Slide 15: Appendix B: Volume Trends and Liquidity and Net Debt
ASHLAND. Appendix B: Volume Trends and Liquidity and Net Debt
Slide 16: Normalized Volume Trends
Normalized Volume Trends‘ 110% Rolling Four Quarters 105% 100% 95% 90% Dec 12 Mar'13 Jun 13 "Excludes values associated with Casting Solutions and divested Pinova, Synlubes, PVAc, and elastomers divisions for all Sept 13 Dec'13 Period Ended periods. Includes volumes assaciated with ISP and Ara Quimi
Slide 17: Liquidity and Net Debt
Liquidity and Net Debt (8 in millions) AtDec. 34, Liquidity 2014 Cash $ 1,256 Available revolver and AIR facility capacity 1,047 Liquidity S 2303 Interest AtDec. 31, Debt Expiration Rate 2014 ATO sanioy) howe, 08/2022 475% Bat BB S$ 1,120 par $1,125 milion SET Sone notes; 04/2018 3.875%, Bat BB 700
Slide 18: Appendix C: Business Profiles
ASHLAND. Appendix C: Business Profiles
Slide 19: Corporate Profile
Corporate Profile By commercial unit By geography Ashland Specialty Europe Ingredients Ashland North 25% 4% Performance Fan? Materials America 26% 53% Asia Pacific 15% Latin Americal Other- 7% 19 ASHLAND. 1 For12 months ended December 31, 2014, 2 Ashland includes only U.S. and Canada in its North Am
Slide 20: Corporate Profile
Corporate Profile usted EBITDA Ashland Performance NYSE Ticker Symbol: ASH Materials 16% Total Employees: ~10,000 Valvoline Outside North America ~30% % ci Number of Countries More in Which Ashland : than 100 Has Sales: 20 ASHLAND. 1 For12 months ended December 31, 2014. See Appendix D for reconcili
Slide 21: Ashland Specialty Ingredients
Ashland Specialty Ingredients ark ) A global leader of cellulose ethers and vinyl pyrrolidones Sales Sales Sales by Market” by Product by Geography v N, ¥ 2 ty, » Coatings PvP fon \ Adhesive 17% Industrial Lato America) Specialties . \ ver 10% e Cellulosics 31% North America 39% For 12 Months Ended
Slide 22: Ashland Performance Materials
Ashland Performance Materials ark ) Global leader in unsaturated polyester resins and vinyl ester resins Sales Sales Sales by Market by Product by Geography Elastomers? 17% Intermediates! Solvents 26% AAtle pai? aciie * Composites Construction 57% Latin Industrial Americal Other For 12 Months Ended
Slide 23: Valvoline: a leading worldwide producer and distributor of premium-branded lubricants
. 3 f Valvoline: a leading worldwide producer and distributor of() (—) \_/ premium-branded lubricants, automotive chemicals and car-care products © Sales Sales International Sales by Market by Product by Region? DIFM: i Valvoline ‘ puta instantol Valvoline Change Lubricants Latin Ameri = Tle) 86% ch
Slide 24: Appendix D: Non-GAAP Reconciliations
ASHLAND. Appendix D: Non-GAAP Reconciliations
Slide 25: Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data
Ashland Inc. and Consolidated Subsidiaries Reconciliation of Non-GAAP Data for 12 Months Ended December 31, 2014 (S$ millions, except percentages) Sales’ Q115 Q4 14 Q3 14 Q2 14 Total Specialty Ingredients 561 635 653 629 2,478 Performance Materials 338 383 420 413 1,554 Valvoline 492 520 532 503 2,0
Slide 26: Ashland
ASHLAND. With good chemistry great things happen.”