Ashland Inc. · NYSE:ASH
Ashland — Credit Suisse 16th Annual Chemical Conference 2007
27 slides from Ashland's conference presentation, Sep 25, 2007
Slide 1: Credit Suisse 16th Annual Chemical Conference
Credit Suisse 16th Annual Chemical Conference September 25, 2007 James J. O'Brien Chairman and Chief Executive Officer Eric N. Boni Director of Investor Relations
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, with respect to Ashland’s operating performance. These estimates are based upon a number of assump
Slide 3: The Transformation of Ashland
The Transformation of Ashland 1920s 1998 2005 2006 Today Dual Core Company Global Diversified Regional Oil Refiner and Marketer · Road Construction/Materials · Diversified Chemicals Chemical Company MAP Ashland Distribution Ashland Water Technologies Ashland Performance Materials 3
Slide 4: Ashland Today
Ashland Today · Y-T-D Fiscal 2007 Financial Results* − Sales & Operating Revenue = $5.7 billion − Operating Income = $190 million − Return on Investment** = 10.1% Ashland Ashland Valvoline Ashland Performance Water Materials Distribution Technologies * For the nine months ended June 30, 2007. ** Aft
Slide 5: Revenue and Operating Income
Fiscal 2007 Y-T-D* Revenue and Operating Income Sales & Operating Revenue Operating Income Water Water Technologies Technologies 10% 8% Ashland Distribution Performance 22% Materials Ashland 18% Distribution Performance 52% Materials 38% Valvoline Valvoline 32% 20% * For the nine months ended June 3
Slide 6: Revenue by Geography
Fiscal 2007 Y-T-D* Revenue by Geography Europe North 20% America 73% Asia/Pacific 3% Other 4% 27% of total revenue generated outside North America * For the nine months ended June 30, 2007. 6
Slide 7: Ashland Today
Ashland Today Ashland Manufactures and sells polyester resins, vinyl ester resins Performance and gelcoats, metal-casting chemicals, and adhesives, Materials primarily to the transportation and construction industries Ashland Distributes chemicals, plastics, fiber reinforcements and resins Distribut
Slide 8: Performance Materials
Performance Materials Business Description Fiscal 2006 Revenue by Market (percent) · Other Composite Polymers - Global manufacturer Packaging & Converting of unsaturated polyester resins, vinyl ester resins Marine Infrastructure · and gelcoats for use in composites Casting Solutions - The world’s le
Slide 9: Performance Materials Market Overview
Performance Materials Market Overview Products / Technology Major Markets · · · Unsaturated polyester resins Transportation: auto / truck body panels, Composite Vinyl ester resins farm equipment, mass transit, seating & Polymers · · structural parts · Gelcoats Building & Construction: tub, shower, s
Slide 10: Performance Materials
Fiscal 2007 Y-T-D Performance Materials (in millions, except percentages) Nine Months Ended June 30, 2007 2006 Change 4.9 5.0 (2.0)% Pounds/Day $ 1,142 $ 1,068 6.9% Sales & Operating Revenue $ 81 $ 94 (13.8)% Operating Income 21.2% 23.2% Gross Profit as a % of Sales · North American softness continu
Slide 11: Distribution
Distribution Business Description Y-T-D 2007* Revenue Composites · by Product Line Leading North American distributor of 11% Environmental Services/ packaged and bulk chemicals, plastics Other - 2% and composite materials; provider of Plastics com-prehensive waste-management 43% · solutions Chemical
Slide 12: Distribution Market Overview
Distribution Market Overview Products / Services Major Markets / Applications · · More than 7,000 industrial, specialty · Paint & Coatings Chemicals and personal-care chemicals, including solvents, · Chemical Manufacturing · plasticizers, surfactants and polymer additives · Polymer Additives Technic
Slide 13: Distribution
Fiscal 2007 Y-T-D Distribution (in millions, except percentages) Nine Months Ended June 30, 2007 2006 Change 19.6 20.5 (4.4)% Pounds/Day $ 2,982 $ 3,046 (2.1)% Sales & Operating Revenue $ 46 $ 95 (51.6)% Operating Income 8.2 % 9.7 % Gross Profit as a % of Sales · Softness in North American manufactu
Slide 14: Distribution Operating Income Performance Factors
Distribution Operating Income Performance Factors $ Millions (5.8) (8.1) 94.6 (34.9) YTD* F2006 Volume Terminated Margin YTD* F2007 Supply Contract Impact * For the nine months ended June 30, 2006 and 2007. 14
Slide 15: Valvoline
Valvoline Business Description Y-T-D Fiscal 2007* Revenue by Channel · Valvoline Do-It-For-Me - Branded and non-branded Do-It-For-Me Instant Oil lubricant and car care products 29% for the automotive service industry 10% Change · Valvoline Instant Oil Change® - Company-owned and · franchised oil-cha
Slide 16: Valvoline Product & Service Overview
Valvoline Product & Service Overview Products / Services Brands · · Lubricants · Motor oil - gasoline & diesel engine Valvoline® · · Automatic transmission fluid Gear oil MaxLife® · Greases · · Automotive · Fuel additives MaxLife® · Power steering fluid · Chemicals · Antifreeze · Zerex ® · Brake flu
Slide 17: Valvoline
Fiscal Y-T-D 2007 Valvoline (in millions, except percentages) Nine Months Ended June 30, 2007 2006 Change 123.8 127.8 (3.1)% Lubricant Gallons $ 1,141 $ 1,030 10.8 % Sales & Operating Revenue $ 68 $ (6) N.D. Operating Income (Loss) 24.8 % 21.4 % Gross Profit as a % of Sales · · Gross margin improvem
Slide 18: Water Technologies
Water Technologies Business Description Y-T-D Fiscal 2007* · Revenue E&PS A major supplier of specialty products and services by Segment 44% for industrial and institutional · water treatment A leading provider of flocculants used in solids and · water separation Industrial A leading worldwide provi
Slide 19: Water Technologies Market Overview
Water Technologies Market Overview Products / Services Major Markets · · Industrial Complete cooling, boiler & wastewater · Chemical Processing · management solutions · Energy Performance-based feed & control · Food & Beverage · automation Commercial & Institutional Remote system surveillance Enviro
Slide 20: Water Technologies Business Model Redesign
Water Technologies Business Model Redesign · Disciplined and thorough redesign process · − Unified business approach − Leverage our expertise across markets − Create scale and common processes Likely exit from certain markets and geographies 20
Slide 21: Water Technologies
Fiscal Y-T-D 2007 Water Technologies (in millions, except percentages) Nine Months Ended June 30, 2007 2006 Change $ 569 $ 310 83.5% Sales & Operating Revenue $ 18 $9 100% Operating Income 39.1% 47.0 % Gross Profit as a % of Sales · Revenue and earnings improved · in traditional water businesses Rev
Slide 22: Key Items Outlook
Fiscal Fourth Quarter 2007 Key Items Outlook · Anticipated key items · Tax rate update · Update to July earnings conference call 22
Slide 23: Anticipated Key Items
Anticipated Key Items* (in millions) Three months ending September 30, 2007 Write-down of PathGuard assets $ (11) Canadian postretirement medical expense (11) Favorable claims experience 8) 13-month foreign reporting impact 8) Operating income impact $ (6) * Current estimates based upon expectations
Slide 24: Operating Income Outlook
Fiscal Fourth Quarter 2007 Operating Income Outlook* Segment Estimated Operating Income (in millions) Performance Materials $ 14 - $ 16 Distribution Valvoline $ 4 -$ 6 Water Technologies ) $$ 17) 10) -- & $$ 19 12 Unallocated Other $ (2) - $ (4) * Excluding key items on Slide 23. Current estimates b
Slide 25: Ashland Opportunities
Ashland Opportunities Primary goal: All businesses performing at their highest potential · · Global expansion − Create a unified, cross-business operating environment − GlobalOne - Enabling systems technology for growth Supply chain integration · Improve performance of Performance Materials, Distrib
Slide 26: Questions?
Questions?
Slide 27: Slide 27
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