Ashland Specialty Ingredients Analyst Day

145 Pages·2012·7.08 MB·English

by  Gwendolyn Sturgill

Ashland Specialty Ingredients
Analyst Day

Dec. 4, 2012
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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. In addition, Ashland may
from time to time make forward-looking statements in its other filings with the Securities and Exchange
Commission (SEC), news releases and other written and oral communications. These forward-looking
statements are based on Ashland’s expectations and assumptions, as of the date such statements are
made, regarding Ashland’s future operating performance and financial condition, the economy and other
future events or circumstances. Ashland’s expectations and assumptions include, without limitation,
internal forecasts and analyses of current and future market conditions and trends, management plans
and strategies, operating efficiencies and economic conditions (such as prices, supply and demand, cost
of raw materials, and the ability to recover raw-material cost increases through price increases), and risks
and uncertainties associated with the following: Ashland’s substantial indebtedness (including the
possibility that such indebtedness and related restrictive covenants may adversely affect Ashland’s future
cash flows, results of operations, financial condition and its ability to repay debt), severe weather, natural
disasters, and legal proceedings and claims (including environmental and asbestos matters). Various
risks and uncertainties may cause actual results to differ materially from those stated, projected or
implied by any forward-looking statements, including, without limitation, risks and uncertainties affecting
Ashland that are described in its most recent Form 10-K (including Item 1A Risk Factors) filed with the
SEC, which is available on Ashland’s website at http://investor.ashland.com or on the SEC’s website at
www.sec.gov. Ashland believes its expectations and assumptions are reasonable, but there can be no
assurance that the expectations reflected herein will be achieved. Ashland undertakes no obligation to
subsequently update any forward-looking statements made in this news release or otherwise except as
required by securities or other applicable law.
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Regulation G: Adjusted (Including Pro Forma)
and Baseline Results
The information presented herein regarding certain unaudited, adjusted (which may
include pro forma results in prior years) and baseline results does not conform to
generally accepted accounting principles in the United States (U.S.-GAAP) and should
not be construed as an alternative to the reported results determined in accordance with
U.S.-GAAP. Management has included this non-GAAP information to assist in
understanding each business segment’s historical operations and financial performance.
The non-GAAP information provided may not be consistent with the methodologies used
by other companies. All non-GAAP information related to Ashland filings with the SEC
has been reconciled with reported U.S.-GAAP results.
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Agenda
8:45 Overview and Strategy Jim O'Brien, Chairman & CEO
9:15 Ashland Specialty Ingredients (ASI) John Panichella, President
Overview, Markets and Strategy Business Unit Leaders
10:45 Break
11:00 ASI Technology May Shana’a, VP Technology/Growth
11:10 Capital Allocation/Financial Review Kevin Willis, Controller ASI
11:30 Q&A
Lamar Chambers,
12:00 Financial Review
Sr. Vice President & CFO
12:15 Closing Comments and Q&A Jim O'Brien
12:30 Lunch
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Objectives
• Provide in-depth review of Ashland Specialty
Ingredients
• Overview of 2012 performance and
accomplishments
• Better understand levers for long-term value
creation
• Share our views regarding capital redeployment
and longer-term capital structure
• Outline vision for future
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Overview and Strategy

Jim O’Brien
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Ashland: Four Strong Businesses

Ashland Ashland Ashland Ashland
Commercial
Specialty Water Performance Consumer
Units
Ingredients Technologies Materials Markets
#1 #2
Leading #1 #1
unsaturated U.S. franchised
cellulose ethers, specialty
Products & polyester resins quick-lube chain,
global leader in papermaking
and vinyl ester #3 passenger-car
Services
vinyl pyrrolidones chemicals
resins motor oil
Sales1 $2.9 billion $1.7 billion $1.6 billion $2.0 billion
1 For fiscal 2012. 7
Corporate Profile1
Sales - $8.2 Billion EBITDA - $1.4 Billion
Water
Technologies
Water 11%
Specialty
Technologies
Ingredients
21% Performance
35%
Materials 12%
Specialty
Ingredients
57% Consumer
Performance
Markets
Materials
Consumer
20%
19%
Markets
25%
Specialty Ingredients now contributes nearly 60% of EBITDA
1 Fiscal 2012 data. EBITDA has been adjusted for key items. See Appendix for reconciliation. 8
Our History
2005: Sold stake in
Marathon Oil joint venture
2008: Acquired Hercules
2011: Acquired
International
Specialty Products
(ISP)
2011: Divested
Ashland Distribution

2006: Divested Ashland
Paving and Construction
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Specialty Chemical Attributes
Ashland
• Long-term growth 
• More consistent, predictable performance 
• Strong, sustainable margins 
• Significant hurdles for new entrants 

• Technology driven, difficult to displace

Combining the elements for long-term success
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