Ashland Inc. · NYSE:ASH
Ashland — Ashland Global Holdings — Q2 2017 Earnings Presentation
25 slides from Ashland's earnings presentation, Apr 25, 2017
Slide 1: Second-Quarter Fiscal 2017 Earnings
Second-Quarter Fiscal 2017 Earnings April 25, 2017 / efficacy usability allure integrity profitability
Slide 2: Forward-Looking Statements
Forward-Looking StatementsThis 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 s
Slide 3: Fiscal Second Quarter 2017 Highlights
Fiscal Second Quarter 2017Highlights1 Reported GAAP earnings from continuing operations of $1.42 per diluted shareAdjusted earnings of $1.71 vs. $1.83 per diluted share in prior yearTotal sales growth of 6 percent to $1.32 billionAshland Specialty Ingredients continued to deliver sales and volume gr
Slide 4: Consolidated Income Statement
Consolidated Income Statement For more information on Valvoline results, refer to the Valvoline Inc. second-quarter earnings release dated April 25, 2017 and earnings conference call Line items include Valvoline segment amounts consistent with Ashland’s historical reporting practice EBITDA and net i
Slide 5: Fiscal Second Quarter – Continuing Operations Key Items Affecting Income
Fiscal Second Quarter – Continuing OperationsKey Items Affecting Income Excluding intangible amortization, adjusted EPS would have been 22 cents higher, or $1.93 per diluted share 5
Slide 6: Adjusted Results Summary
Adjusted Results Summary1 Ashland‘s earnings releases dated April 25, 2017, and January 26, 2017, available on Ashland's website at http://investor.ashland.com, reconcile adjusted amounts to amounts reported under GAAP. The three months ended March 31, 2017 excludes adjusted EBITDA attributable to n
Slide 7: Ashland Specialty Ingredients Adjusted Results Summary
Ashland Specialty IngredientsAdjusted Results Summary1 Sales increased $15 million, or 3 percent, to $544 million in the second quarterAdjusted EBITDA of $127 million remained consistent with the prior year Ashland‘s earnings releases dated April 25, 2017, and January 26, 2017, available on Ashland'
Slide 8: Ashland Performance Materials Adjusted Results Summary
Ashland Performance MaterialsAdjusted Results Summary1 Sales of $262 million represents year-over-year growth of 10 percentAdjusted EBITDA of $23 million and Adjusted EBITDA margin of 8.8 percent Ashland‘s earnings releases dated April 25, 2017, and January 26, 2017, available on Ashland's website a
Slide 9: Fiscal Second Quarter 2017 Corporate Items
Fiscal Second Quarter 2017Corporate Items Adjusted corporate operating income of $6 millionExcluding Valvoline, Ashland FY 2017 expectation of $30-$35 million expenseNet interest expense of $38 millionExcluding Valvoline, Ashland FY 2017 expectation of $125-$135 million reflecting increased bank deb
Slide 10: Appendix A: Bridges
Appendix A: Bridges
Slide 11: Ashland Q2 FY 2016 vs. Q2 FY 2017 Sales and Adjusted EBITDA Bridges
Ashland Q2 FY 2016 vs. Q2 FY 2017Sales and Adjusted EBITDA Bridges 5% Q2 2016 Volume / Mix 1,247 1,320 ($ millions)Preliminary Sales increased $73 million, or 6 percent, compared to the prior-year quarterAdjusted EBITDA of $247 million excludes $24 million attributable to non-controlling interest of
Slide 12: Ashland Specialty Ingredients Sales and Adjusted EBITDA Bridges
Ashland Specialty IngredientsSales and Adjusted EBITDA Bridges 4% Q2 2016 Volume / Mix 529 544 ($ millions)Preliminary Sales increased $15 million, or 3 percent, to $544 million in the second quarterVolume growth of 4% driven by growth in both Consumer and Industrial Specialties end marketsAdjusted
Slide 13: Ashland Performance Materials Sales and Adjusted EBITDA Bridges
Ashland Performance MaterialsSales and Adjusted EBITDA Bridges 9% Q2 2016 Volume / Mix 239 262 ($ millions)Preliminary Sales increased $23 million, or 10 percent, to $262 million in the second quarterVolume growth of 10% driven by growth in both Composites and Intermediates & SolventsAdjusted EBITDA
Slide 14: Appendix B: Volume Trends and Liquidity and Net Debt
Appendix B: Volume Trends and Liquidity and Net Debt
Slide 15: Rolling Four Quarters Normalized Volume Trends
Period Ended 1 Excludes volumes associated with divestitures of biocides and exited redispersible powders (RDP) product line for all periods. Rolling Four Quarters Normalized Volume Trends1 15
Slide 16: Liquidity and Net Debt
Liquidity and Net Debt ($ in millions) Key Developments:During March 2017, Ashland conducted open market purchases of our 2018 and 2022 senior notes, totaling $15MM in par value 16
Slide 17: Scheduled Debt Payments
Scheduled Debt Payments Valvoline Ashland ($ in millions) 17
Slide 18: Appendix C: Business Profiles
Appendix C: Business Profiles 12 Months Ended March 31, 2017
Slide 19: Corporate Profile
Corporate Profile By business unit By geography 1 For 12 months ended March 31, 2017.2 Ashland includes only U.S. and Canada in its North America designation. North America253% Asia Pacific17% LatinAmerica/Other - 7% Europe 23% AshlandSpecialtyIngredients42% AshlandPerformanceMaterials19% Valvoline3
Slide 20: Corporate Profile
Corporate Profile For 12 months ended March 31, 2017 including Valvoline. See Appendix D for reconciliation to amounts reported under GAAP.Excludes Valvoline. NYSE Ticker Symbol: ASH Total Employees2: ~6,000 Outside North America ~50% Number of Countries in Which Ashland Has Sales: More than 100 Ash
Slide 21: Ashland Specialty Ingredients Sales by Market
Ashland Specialty Ingredients Salesby Market2 For 12 Months Ended March 31, 2017Sales: $2.1 billionAdjusted EBITDA: $476 million1Adjusted EBITDA Margin: 22.6%1 Salesby Product Cellulosics 38% PVP19% Adhesives 16% North America 39% AsiaPacific 20% Europe 31% Latin America/Other – 10% Actives – 6% Vin
Slide 22: Ashland Performance Materials Sales by Geography
Ashland Performance Materials Salesby Geography For 12 Months Ended March 31, 2017Sales: $944 millionAdjusted EBITDA: $91 million1Adjusted EBITDA Margin: 9.6%1 Salesby Product Composites73% Intermediates/Solvents 27% Construction: Residential13% Marine 17% Other Process Industries15% Construction:In
Slide 23: Appendix D: Non-GAAP Reconciliation
Appendix D: 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 24: Reconciliation of Non-GAAP Data for 12 Months Ended March 31, 2017
Ashland Global Holdings Inc. and Consolidated SubsidiariesReconciliation of Non-GAAP Data for 12 Months Ended March 31, 2017 North America2__% Asia Pacific__% LatinAmerica/Other - _% Europe __% AshlandSpecialtyIngredients__% AshlandPerformanceMaterials__% Valvoline__% 1 Quarterly totals may not sum
Slide 25: Trademark notices
® Registered trademark, Ashland or its subsidiaries, registered in various countries™ Trademark, Ashland or its subsidiaries, registered in various countries
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