Ashland Inc. · NYSE:ASH
Ashland — Ashland Global Holdings — Q1 2017 Earnings Presentation
25 slides from Ashland's earnings presentation, Jan 26, 2017
Slide 1: First-Quarter Fiscal 2017 Earnings
First-Quarter Fiscal 2017 Earnings January 26, 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 First Quarter 2017 Highlights
Fiscal First Quarter 2017Highlights1 Reported GAAP loss from continuing operations of $0.01 per diluted shareAdjusted earnings of $1.16 vs. $1.41 per diluted share in prior yearTotal sales growth of 3 percent to $1.193 billionASI delivered sales, volume and earnings growth led by wins in key end mar
Slide 4: Consolidated Income Statement
Consolidated Income Statement Ashland will report consolidated results for each quarter that Ashland maintains a controlling interest in Valvoline as of the last day of the quarterFor more information on Valvoline results, refer to the Valvoline Inc. first-quarter earnings release dated January 26,
Slide 5: Fiscal First Quarter – Continuing Operations Key Items Affecting Income
Fiscal First Quarter – Continuing OperationsKey Items Affecting Income Excluding intangible amortization, adjusted EPS would have been 22 cents higher, or $1.38 per diluted share *
Slide 6: Adjusted Results Summary
Adjusted Results Summary1 Ashland‘s earnings releases dated January 26, 2017, and November 8, 2016, available on Ashland's website at http://investor.ashland.com, reconcile adjusted amounts to amounts reported under GAAP. The three months ended December 31, 2016 excludes adjusted EBITDA attributable
Slide 7: Ashland Specialty Ingredients Adjusted Results Summary
Ashland Specialty IngredientsAdjusted Results Summary1 Strong Industrial results leading to total sales and volume growth of 1% and 6%, respectivelyAdjusted EBITDA of $95 million represents 1% year-over-year growth Ashland‘s earnings releases dated January 26, 2017, and November 8, 2016, available o
Slide 8: Ashland Performance Materials Adjusted Results Summary
Ashland Performance MaterialsAdjusted Results Summary1 Composites volume growth of 7% with solid results across all regionsPlanned Lima I&S catalyst change resulted in $9 million of incremental cost Ashland‘s earnings releases dated January 26, 2017, and November 8, 2016, available on Ashland's webs
Slide 9: Fiscal First Quarter 2017 Corporate Items
Fiscal First Quarter 2017Corporate Items Adjusted corporate operating income of $13 millionExcluding Valvoline, Ashland FY 2017 expectation of $30-$35 million expenseExcluding financing charges, net interest expense of $40 millionExcluding Valvoline, Ashland FY 2017 expectation lowered to $120-$130
Slide 10: Appendix A: Bridges
Appendix A: Bridges of Ashland
Slide 11: Ashland Q1 FY 2016 vs. Q1 FY 2017 Revenue and Adjusted EBITDA Bridges
Ashland Q1 FY 2016 vs. Q1 FY 2017Revenue and Adjusted EBITDA Bridges 4% Q1 2016 Volume / Mix 1,163 1,193 ($ millions)Preliminary Total revenue growth of 3% driven by strong growth in volume / mix across all segmentsAdjusted EBITDA of $215 million includes $9 million of Lima BDO catalyst change costs
Slide 12: Ashland Specialty Ingredients Revenue and Adjusted EBITDA Bridges
Ashland Specialty IngredientsRevenue and Adjusted EBITDA Bridges 3% Q1 2016 Volume / Mix 476 482 ($ millions)Preliminary Sales revenue growth of 1% vs. prior year, led by strong Industrial Specialties resultsVolume growth of 6% vs. prior yearAdjusted EBITDA of $95 million represents 1% year-over-yea
Slide 13: Ashland Performance Materials Revenue and Adjusted EBITDA Bridges
Ashland Performance MaterialsRevenue and Adjusted EBITDA Bridges 3% Q1 2016 Volume / Mix 231 222 ($ millions)Preliminary Composites volume growth of 7% with solid results across all regionsBDO and derivatives prices down versus prior yearPlanned Lima I&S catalyst change resulted in $9 million of inc
Slide 14: Appendix B: Volume Trends and Liquidity and Net Debt
Appendix B: Volume Trends and Liquidity and Net Debt
Slide 15: Rolling Four Quarters Normalized Volume Trends
Period Ended 1 Excludes volumes associated with divestitures of elastomers and biocides and exited redispersible powders (RDP) product line for all periods. Rolling Four Quarters Normalized Volume Trends1 *
Slide 16: Liquidity and Net Debt
Liquidity and Net Debt ($ in millions) Key Developments:In December 2016, Ashland repurchased $182 million of principal par value of its 6.5% junior subordinated debentures due 2029Book value of the debentures was reduced by $90 million to $50 million *
Slide 17: Scheduled Debt Payments
Scheduled Debt Payments Valvoline Ashland ($ in millions) *
Slide 18: Appendix C: Business Profiles
Appendix C: Business Profiles 12 Months Ended December 31, 2016
Slide 19: Corporate Profile: Sales by Business Unit and Geography
Corporate Profile By business unit By geography 1 For 12 months ended December 31, 2016.2 Ashland includes only U.S. and Canada in its North America designation. North America254% Asia Pacific16% LatinAmerica/Other - 7% Europe 23% AshlandSpecialtyIngredients42% AshlandPerformanceMaterials19% Valvoli
Slide 20: Corporate Profile: Adjusted EBITDA
Corporate Profile For 12 months ended December 31, 2016 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
Slide 21: Ashland Specialty Ingredients Sales by Market
Ashland Specialty Ingredients Salesby Market2 For 12 Months Ended December 31, 2016Sales: $2.1 billionAdjusted EBITDA: $476 million1Adjusted EBITDA Margin: 22.7%1 Salesby Product Cellulosics 38% PVP19% Adhesive 16% North America 39% AsiaPacific 20% Europe 31% Latin America/Other – 10% Actives – 6% V
Slide 22: Ashland Performance Materials Sales by Geography
Ashland Performance Materials Salesby Geography For 12 Months Ended December 31, 2016Sales: $921 millionAdjusted EBITDA: $101 million1Adjusted EBITDA Margin: 11.0%1 Salesby Product Composites73% Intermediates/Solvents 27% Construction: Residential13% Marine 17% Other Process Industries15% Constructi
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 December 31, 2016
Ashland Global Holdings Inc. and Consolidated SubsidiariesReconciliation of Non-GAAP Data for 12 Months Ended December 31, 2016 North America2__% Asia Pacific__% LatinAmerica/Other - _% Europe __% AshlandSpecialtyIngredients__% AshlandPerformanceMaterials__% Valvoline__% 1 Quarterly totals may not s
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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