earnings conference call first-quarter fiscal 2022

/ efficacy usability allure integrity profitability

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 words such as "anticipates," "believes," "expects," "estimates," "is likely," "predicts," "projects," "forecasts," "objectives," "may," "will," "should," "plans" and "intends" and the negative of these words or other comparable terminology. Ashland may from time to time make forward-looking statements in its annual reports, quarterly reports and other filings with the 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, financial condition, and expected effects of the COVID-19 pandemic on Ashland's business, as well as the economy and other future events or circumstances. These statements include, but may not be limited to, the statements under Priorities and Outlook on pages 18 - 25 of the presentation, and Ashland's expectations regarding its ability to drive sales and earnings growth and realize further cost reductions. 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: the impact of acquisitions and/or divestitures Ashland has made or may make (including the possibility that Ashland may not realize the anticipated benefits from such transactions); 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, public-health crises (including the current COVID-19 pandemic), cyber events and legal proceedings and claims (including product recalls, environmental and asbestos matters); the effects of the COVID-19 pandemic on the geographies in which we operate, the end markets we serve and on our supply chain and customers, and without limitation, risks and uncertainties affecting Ashland that are described in Ashland's 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 athttp://www.sec.gov.Various risks and uncertainties may cause actual results to differ materially from those stated, projected or implied by any forward-looking statements. The extent and duration of the COVID-19 pandemic on our business and operations is uncertain. Factors that will influence the impact on our business and operations include the duration and extent of the pandemic, the extent of imposed or recommended containment and mitigation measures, and the general economic consequences of the pandemic. Ashland believes its expectations and assumptions are reasonable, but there can be no assurance that the expectations reflected herein will be achieved. Unless legally required, Ashland undertakes no obligation to update any forward-looking statements made in this presentation whether as a result of new information, future events or otherwise.

Regulation G: Adjusted Results

The information presented herein regarding certain unaudited adjusted 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. Ashland has included this non-GAAP information to assist in understanding the operating performance of the company and its reportable segments. The non-GAAP information provided may not be consistent with the methodologies used by other companies. All non-GAAP information has been reconciled with reported U.S. GAAP results beginning on page 33 of this presentation.

  • Q1 performance summary
  • Q1 financial results
  • advancing our strategy
  • outlook
  • closing comments
  • Q&A

3

Q1 performance summary

commentary on Q1 performance

resilient financial results

  • core end-market demand and orders remain robust, sales growth of 9% and adjusted EBITDA growth of 5%
  • Schülke & Mayr business a strong contributor to Personal Care
  • sustaining gross profit margins in inflationary environment, strong pricing execution to offset raw-material cost inflation
  • >20% increase in new product introductions
  • plants running well despite COVID pandemic, labor challenges and government-imposed shutdown in China
  • headwinds vs. expectations driven by continued shipping challenges and greater-than-expected cost inflation
  • ongoing free cash flow2 impacted by inventory rebuild and inflationary impact on working capital

Q1 highlights1

sales of $512 million (+9%)

adjusted EBITDA of $106

million (+5%)

adjusted EBITDA margin of

20.7% (-90 bps)

ongoing free cash flow2 of

$26 million

ongoing FCF conversion3 of

25%

  • Ongoing free cash flow defined as total cash flow provided by operating activities, less adjustments to property, plant and equipment and excluding any inflows or outflows related to the U.S. Accounts Receivable Sales Program, restructuring-related
  • payments and environmental and related litigation payments.

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Ashland Global Holdings Inc. published this content on 02 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 February 2022 13:48:04 UTC.