Ashland Global Holdings Inc.
ASHLAND GLOBAL HOLDINGS INC (Form: 8-K, Received: 05/01/2017 08:03:06)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
 

 
FORM 8-K
 


CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of report (Date of earliest event reported):  May 1, 2017
 
ASHLAND GLOBAL HOLDINGS INC.
(Exact name of registrant as specified in its charter)
 
Delaware
(State or other jurisdiction of incorporation)

333-211719
 
 81-2587835
(Commission File Number)
 
  (I.R.S. Employer Identification No.)

50 E. RiverCenter Boulevard
Covington, Kentucky 41011
Registrant’s telephone number, including area code (859) 815-3333
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company   ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
 


Item 7.01.
Regulation FD Disclosure

In connection with Ashland’s previously announced investor day presentation today, Ashland will be providing a more in-depth review of Ashland’s shareholder value creation strategy and its expectations regarding financial targets to create shareholder value.

A copy of the slide presentation is attached to this Form 8-K as Exhibit 99.1 and is incorporated herein by reference solely for purposes of this Item 7.01 disclosure.  Ashland plans to webcast its investor conference today, which will begin at approximately 8:30am EDT and conclude at approximately noon.  The webcast and supporting materials will be accessible through the Investor Relations section of Ashland’s website at http://investor.ashland.com .  Following the live event, an archived version of the webcast and supporting materials will be available on the Ashland website for 12 months.

Item 9.01 .
Financial Statements and Exhibits

 
(d)
Exhibits
     
 
 99.1
Slide Presentation dated May 1, 2017.

In connection with the disclosures set forth in Item 7.01 above, the information in this Form 8-K, including the exhibit attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section. The information in this Form 8-K, including the exhibit, shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any  incorporation by reference language in any such filing. This Form 8-K will not be deemed an admission as to the materiality of any information in this Form 8-K that is required to be disclosed solely by Regulation FD.
 
2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
ASHLAND GLOBAL HOLDINGS INC.
 
(Registrant)
   
May 1, 2017
/s/ Peter J. Ganz
 
Peter J. Ganz
 
Senior Vice President, General Counsel and Secretary
 
3

EXHIBIT INDEX

Slide Presentation dated May 1, 2017.
 
 
4


Exhibit 99.1
 
 Investor DayMay 1, 2017, New York City  Ashland’s Strategy and Commitment to Create Shareholder Value 2018-2021 
 

   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 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. These forward-looking statements include statements relating to our expectation that the proposed acquisition of Pharmachem Laboratories, Inc. (Pharmachem) will be completed before the end of the June quarter and that the proposed acquisition will be accretive to earnings per share, and the expected completion of the separation of Valvoline Inc. (“Valvoline”) through the distribution of Valvoline common stock. In addition, 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 and financial condition, the expected completion of the final separation of Valvoline, the strategic and competitive advantages of each company, and future opportunities for each company, as well as 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); the impact of acquisitions and/or divestitures Ashland has made or may make, including the proposed acquisition of Pharmachem (including the possibility that Ashland may not complete the proposed acquisition of Pharmachem or Ashland may not realize the anticipated benefits from such transactions); and 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 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 at http://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. 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. Information on Ashland’s website is not incorporated into or a part of this presentation.Regulation G: Adjusted ResultsThe 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 related to previous Ashland filings with the SEC has been reconciled with reported U.S. GAAP results. Although Ashland provides forward-looking guidance for adjusted EBITDA, 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 measures to the most directly comparable U.S. GAAP measure because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort.  Note: This presentation contains a more detailed profile than we have reported in the past, or will report regularly in the future.  1 
 

   Summarize our evolution and define the New AshlandDefine financial targets to create shareholder value and their connection to:Core operational levers to deliver financial targetsMarket strategies to accelerate profitable growthClarify capital allocation policies to turn cash into valueProfile dimensions to drive strong execution  Our purpose: To define the New Ashland's shareholder value creation strategy 
 

   Ashland has a long history of successfully executing challenging strategic plansManagement and Board have made difficult and important decisions to transform from an oil refiner to a premier specialty chemical companyCompleted numerous transformative transactions  Acquired  Exited  2007  2008  2011  2009  2012  2010  2006  EBITDA margin1  (Adhesives)  Ashland Distribution  1. EBITDA margins have been reconciled with reported U.S. GAAP results in previous SEC filings  The transformation started more than a decade ago  transformation  integration  separation  pivot to premier  Strategic decisions have expanded EBITDA margins1 
 

     Primary focus of the organization:Improved adj. EBITDA marginIncreased role of ASI1: Now 69% of company sales   Capital Allocation ActionsDivested over $2B non-core businessesReturned over $2B to shareholdersOperational ImprovementsFixed supply chain  On-time delivery > 95%Reduced SG&A by > $200 MMPut businesses onto common IT platform  1. Ashland Specialty Ingredients  Over the past 5 years, we've completed the transformation and integrated the business  transformation  integration  separation  pivot to premier 
 

 Completed IPO one year after announcementTook action to enable cost neutralityStructured separation to be tax freeKept separation costs <$150MMKept mid to high BB credit ratings for both companiesCreated two great companies  Distribution date May 12, 2017  Over the last 18 months, we have successfully completed the separation of Valvoline  integration  separation  pivot to premier  transformation    KeyDeliverables 
 

       Revenue  End markets served  6,000  69%  Employees  ASl1 share of Ashland sales  9  LATAM  APAC  NA  18  EMEA  33  40  Production plants  ASI adj. EBITDA2 margin  % of Sales(FY '16)  Note: All figures as of FY'161. Defined as Ashland Specialty Ingredients reporting segment2. EBITDA margin has been reconciled with reported U.S. GAAP results in previous SEC filings  22  Composites  9  I&S  Ashland SpecialtyIngredients  69  We begin our next era, “pivot to premier” with a new corporate profile  Diverse set of geographies and target industries  $3B+  15+  42  23%  integration  separation  pivot to premier  transformation 
 

     Executive Committee  Kevin WillisSVP & CFO  Peter J. GanzSVP, General Counsel & Secretary    Bill WulfsohnChairman & CEO  Operating Committee  Brian McGrathVP Supply Chain  Osama MusaVP R&D & CTO  Keith SilvermanVP, EHS, Quality & Regulatory Affairs  Jean ZappiaVP Intermediates and Solvents  Andy Johnston Group VP Composites  Vito ConsiglioVP Personal &Home Care  Suzanne RowlandGroup VP Industrial Specialties  Dave NeubergerVP Pharma, Nutrition & Agriculture  Anne SchumannVP HR & IT   8 of 11 in new or expanded role                    With a new leadership team  integration  separation  pivot to premier  transformation 
 

 With a new brand proposition, organizational blueprint and integrated culture  Blueprint  Brand Promise  Ashland Way  Ashland is now working as one team with a common purpose  integration  separation  pivot to premier  transformation 
 

 Awarded American Chemistry Council Responsible Care Initiative of the Year award in 2016  One thing that has not changed, is unwavering commitment to safe and responsible operations  European Federation for Cosmetic Ingredients  10 facilities globally GMP certified – leader within the cosmetic ingredient manufacturing industry  Global Food Safety Initiative  Five food additive facility certifications  Lloyd's Register Quality Assurance  100% of manufacturing facilities with 10 or greater employees independently certified to ISO 9001  International Excipients Certification  Leads the pharmaceutical excipient manufacturing industry with the most facilities globally certified 
 

   Summarize our evolution and define the New AshlandDefine financial targets to create shareholder value and their connection to:Core operational levers to deliver financial targetsMarket strategies to accelerate profitable growthClarify capital allocation policies to turn cash into valueProfile dimensions to drive strong execution  Our purpose: To define the New Ashland's shareholder value creation strategy 
 

 Note: Adjusted EPS growth, Adjusted EBITDA and Free Cash Flow are forward looking non-GAAP financial measures. See Slide 1 for an explanation for why reconciliations are not available to the most directly comparable forward looking GAAP financial measure; 1. Cumulative Free Cash Flow generation over target period less certain key items* = 2021 Adjusted EBITDA Target  Financial targets to create shareholder value          Adjusted ASI EBITDA (%) >25%*  Cashgeneration1$1B+   Adjusted EPS growth (CAGR)>15%  2018 – 2021 Performance Targets  Aggressive new targets 
 

 Note: Adjusted EPS growth, Adjusted EBITDA and Free Cash Flow are forward looking non-GAAP financial measures. See Slide 1 for an explanation for why reconciliations are not available to the most directly comparable forward looking GAAP financial measure; 1. Cumulative Free Cash Flow generation over target period less certain key items; 2. New and Proprietary Product Sales defined as new products in the market for <= 5 years and patented products for life of patent * = 2021 Adjusted EBITDA Target  Driven by 7 core levers      New actions to sustain and grow premium mixEvolve business portfolioImplement new market strategiesExpand new and proprietary product sales2 (NPI)New initiatives to improve competitivenessAsset utilization programsPrice to value effortsSG&A inflation initiatives      Ensure CapEx plus changes in working capital <6.5% per year        Adjusted ASI EBITDA (%) >25%*  Cashgeneration1$1B+   Adjusted EPS growth (CAGR)>15%  2018 – 2021 Performance Targets 
 

 Financial returnsEBITDA % of sales > 20%GDP + growthLow cyclicality/volatilityStrong cash conversionROIC well above WACC  Small cost with big impact on end productAmplify the efficacyRefine the usabilityAdd to the allureEnsure the integrityImprove the profitability  Blue chip marketsTechnology: Leverage our core platformsCustomers: Technology, brand and quality criticalEnd markets: Close to consumerCompetitive landscape: Few approved suppliers High barriers to entry  Customization differentiatesR&D: Create proprietary platformsDerivatize: Enhance functionalityTech service: Improve customer applicationLeverage our brand name, specifications or claims              2. Differentiation  1. Profit Zones  3. Customization  AshlandSpecialties  4. Financial returns  Sustain and grow premium mixPortfolio: Ashland’s definition of Specialty  1    13 
 

 Revenue of ~$300 million and adjusted EBITDA margin of ~20% in FY2016Leading provider of:customized solutions and high quality ingredients to the global health and wellness industrieshigh value, differentiated products for fragrance and flavor housesApplications include nutraceuticals, fine perfumes, laundry and personal care products, skin care, cosmetics and food and beverageStrong capabilities in extraction, refining, granulation, spray drying, turnkey packaging solutions, fermentation and fermentation purification  Nutrition and Health  Fragrance and Flavors  Food, Beverage and Personal Care   Custom Manufacturing  North America  Europe  Asia  Other  FY'16 Pharmachem Revenue By End Market    FY'16 Pharmachem Revenue By Geography    Sustain and grow premium mixPortfolio: Pharmachem profile  1  Strong commercial & financial profile 
 

 Sustain and grow premium mixPortfolio: Pharmachem fit with Ashland  Leverages our customization capabilities into niches where we create valueCustomer-intimacy sales model emphasizing tailored productsCreates unique industry offering: leveraging Pharmachem’s custom manufacturing capabilities with Ashland’s formulation knowledge and excipients expertiseLeverages our extensive sales channels, technical service network and global applications labs to accelerate Pharmachem growth outside of North AmericaEnhances Ashland’s food ingredient business by adding customized functional solutionsExpands scope/range of our products and service offeringsAdds high value, differentiated products sold to the major fragrance and flavor housesEnhances Ashland’s position in the high growth nutraceutical marketExpands our presence in attractive end marketsFocused on attractive end markets including food, beverage, nutrition, andfragrance and flavors  Strongly complements Ashland's ASI businessBusiness leaders will share specific synergies  1 
 

   … In Action: Pharmachem  Fit with Ashland Specialty modelProfit zone: Pharma and PCDifferentiation: Unique, high value ingredients critical to customer productCustomization: Highly customized formulationsFinancial returns: See below  "One degree from the core"  Advanced formulation expertise  Complementary production capabilities  US/EU centric  Close connection to PNS1 & PC1; new opportunity in fragrances and flavors  Economics  Expected to be accretive 1st year  Attractive double digit returns  Strong cash conversion ~$10MM cost/~$110MM NPV tax synergies  Believe metrics substantiate mid to high expected BB credit ratings  Sustain and grow premium mixPortfolio: Pharmachem fits our investment philosophy  Core Principles …  Fit with Ashland Specialty model  "One degree from the core"  Technology  Manufacturing  Geography  Customer/market  Economics  Near-term EPS accretion  Risk weighted returns well above WACC  Strong cash conversionCost driven synergies  Maintain mid to high BB credit rating  1. Pharma and Nutritional Specialties, and Personal Care  1             
 

   Profit Zone  Differentiation  Customization  Financial returns  Intermediates& Solvents  Pharma  PersonalCare  Coatings  Adhesives  Composites  Other ASI2  1. Intermediates and Solvents 2. Other ASI includes Energy, Construction, Specialties, Nutrition, and Advanced Material      Legend  Higher fit  Lower fit    End Market            2. Differentiation  1. Profit Zones  3. Customization  AshlandSpecialties  4. Financial returns  We are expanding end market segmentation and connecting to operating imperatives  Sustain and grow premium mixPortfolio: Plan to address I&S1 impact on portfolio                                                            1               
 

       (Post-Valvoline Separation)  $3.0 B(1)  ~19%3  Ashland Specialty Ingredients  Ashland Performance Materials  IncludingPharmachem  ExcludingIntermediates and Solvents (I&S)  Ashland Specialty Ingredients  Ashland Performance Materials  Pro Forma  (Post-Valvoline Separation)  $3.0 B  Consumer Specialties  Industrial Specialties  Pharmachem   Composites  Revenue  Revenue By End Market  Adjusted EBITDA margin  LTM as of December 31, 2016  +~130bps  1. Represents Ashland Specialty Ingredients and Ashland Performance Materials as reported in Q1 2017 Earnings Presentation2. As previously disclosed, Ashland is currently exploring strategic alternatives for the I&S division3. Adjusted EBITDA of $1,042 million as of December 31, 2016, adjusted for the Valvoline separation of $471 million, over sales of $3,016 million.    Consumer Specialties  Industrial Specialties  Composites  I&S  36%  22%  10%  32%      36%  34%  8%  22%  Sustain and grow premium mixPortfolio: pro forma perspective  1  On track to highly concentrated specialty mix  1  2 
 

   Focus  Approximate VOL % CAGR1'13–'16  Common Themes  Pharma  Growth  2%  1. Continue to drive differentiation to expand premium mix2. Take actions to keep system full and costs competitive3. Grow in emerging regions and expand range of solutions  Personalcare  Growth  3%    Coatings  Growth  3%    Adhesives  Growth  4%    Other ASI2  Select invest or harvest  -6%    Composites  Margins/cash  1%    Weighted total  Ex Divestitures  0%  '18-'21 Projected volume growth CAGR: 2.5-3.5%    Focus  Approximate VOL % CAGR1'13–'16  Recent developments  Pharma  Growth  2%  Added pharma capabilities in China and capacity in EUBuilt pharma labs in India and ChinaChosen as excipient supplier on several new drug launchesIdentified synergy opportunities with Pharmachem  Personalcare  Growth  3%  Engaged with customers on new award winning technology Redesigned organization with new leadershipIdentified synergy opportunities with Pharmachem  Coatings  Growth  3%  Commercialized and globalized new premium AquaflowEnhanced coatings labs in US and India  Adhesives  Growth  4%  Commercialized new PSA technologiesExpanded global focus of this NA centric division  Other ASI2  Select invest or harvest  -6%  Reduced focus on cyclical energy and construction industriesIntroduced new niche products (e.g., for Li ion batteries)  Composites  Margins/cash  1%  Announced highly synergistic acquisition of Reichhold France plant   Weighted total  Ex Divestitures  0%  '18-'21 Projected volume growth CAGR: 2.5-3.5%  1. Financial 2013-2016 results less divestitures2. Other ASI includes Energy, Construction, Specialties, Nutrition, and Advanced MaterialsNote: Excludes divestitures; see slide 2 for information on forward-looking non-GAAP figures  Sustain and grow premium mixMarket strategies: Accelerating BU profitable growth  2  See detailed strategies, beginning page 44 
 

   ~500  22  Scientists  Global laboratories  57  >2,800  New platform releases in last 4 years  Patents assigned  1. New and Proprietary Product Sales defined as new products in the market for <= 5 years and patented products for life of patentNote: As of Q1 2017   25%  Ashland sales from new and proprietary products1  Sustain and grow premium mixNPI: Leverage strong R&D foundation  3  Very strong technical team and infrastructure 
 

   4 Core innovation priorities  18%  30%  34%  18%  Polaris™: innovative resins for engineered stone providing quality, durability, and improved surface gloss to enable new designs  Multi-Generational Product Planning  Encapsulation: long lasting fragrance release technology suitable for aqueous products  Product lineextension  FiberHanceTM BM solution: new technology to improve sustainability of hair strengthening  New to world/Ashland  Mfg. cost/capabilities  PolyAPTAC manufacturing process: reengineered process to purify industrial grade of PolyAPTAC technology into Hair Care applications with proven results  Note: See appendix for example detail  Page 112  Page 113  Page 114  Page 115  FY'16 R&D spend was ~3% of sales  Target 30% of current sales at 5% margin premium from new products  Sustain and grow premium mixNPI: Four core R&D focus areas  3 
 

       5 Ashland Effects™ at work          1. Efficacy  KlucelTM helps ensure stable active ingredient delivery for blockbuster high cholesterol treatment    2. Usability  Our ProLipid™ lamellar gel designed to exert a ‘second skin’ effect and Ganex™ waterproofing polymers make sunscreens usable in water and humid environments  3. Allure  Our Tuberlux™ black diamond truffle extract energizes skin cells in Estée Lauder's prestige Re-Nutriv line  4. Integrity  Our Aroset™ PSAs provide a lightweight, air tight, and cost effective seal, enabling innovative packaging and a longer shelf life    5. Profitability  Our Derakane™ improved our customer's production, cutting “failure rates” by ~80%, saving over $10K per month    Note: See appendix for example detail  Page 114  Page 115  Page 116  Page 117  Page 118  Sustain and grow premium mixNPI: Innovation that delivers on our brand promise  3 
 

         1. Commercial Impact Factor is the ratio of actual commercial impact to the planned commercial impact; assessing degree of commercialization 2. Pipeline Turnover Factor is the ratio of the pipeline to the turnover within the pipeline    Last 3 months  To be initiated  Last 12 months  Current implementation  Legend:  Business-unit driven ideationCommercial project review and prioritization /ownership  BU Leaders own project listProduct marketing re-establishedRegional GMs engaged  local needsImplement quarterly "stage 6" reviews  Expand use oflocal labsShift resources with priority on TSR>Innova> Express InnovaNew “bench to stable” initiative  Migrate to Innova Express and TSR“Fail fast” - when priorities change, not at next gate review  Also implementing new metric and tracking system  X  X  X  Target NPI:30% of sales  TechnicalHit Rate  Sales Impact1  PipelineTurnover2  Pipeline  CurrentNPI:25% of sales              Sustain and grow premium mixNPI: Improving the impact of our R&D spend  3 
 

         Stage Gate process for moving a new-product project from idea to launch  Fast track process with no R&D synthesis work or CapEx   Focused, short-term application work primarily involving existing commercial products  Avg. time in months(2011-2016)  % R&D and Tech cost1(2016)  33  16  2  ~35%  ~21%  ~44%    BU Approval  Gate 1  Stage 2  Stage 3  Stage 4    BusinessCaseReview    TechReview    ProcessTechReview    Mfg& LaunchApproval  Gate 2  Gate 4  Gate 3  Gate 5  Stage 5    Post LaunchReview  Gate 6  Stage 0  Stage 1  Stage 3  Stage 4    BU and R&D approval    ProcessTechReview    Mfg.& LaunchApproval  Gate 4  Gate 1-3  Gate 5  Stage 5    Post LaunchReview  Gate 6  Stage 0    Sales/mktg/R&D/EHS review  Approval  Lab work    Technical report & customer feedback  Completion                    INNOVA  INNOVA Express  TSR Project  Stage 0  Redeploy resources to more TSR/Innova Express projects  1. Excludes other R&D costs  Sustain and grow premium mixNPI: Migrate resources towards TSR/Innova Express  3 
 

 Note: Adjusted EPS growth, Adjusted EBITDA and Free Cash Flow are forward looking non-GAAP financial measures. See Slide 1 for an explanation for why reconciliations are not available to the most directly comparable forward looking GAAP financial measure; 1. Cumulative Free Cash Flow generation over target period less certain key expenditures; 2. New and Proprietary Product Sales defined as new products in the market for <= 5 years and patented products for life of patent * = 2021 Adjusted EBITDA Target  Driven by 7 core levers      New actions to sustain and grow premium mixEvolve business portfolioImplement new market strategiesExpand new and proprietary product sales2 (NPI)New initiatives to improve competitivenessAsset utilization programsPrice to value effortsSG&A inflation initiatives      Ensure CapEx plus changes in working capital <6.5% per year        Adjusted ASI EBITDA (%) >25%*  Cashgeneration1$1B+   Adjusted EPS growth (CAGR)>15%  2018 – 2021 Performance Targets 
 

       1. For all of Ashland 2. Pharma and Nutritional Specialties, and Personal Care  $70MM  Absorption cost/unit increases concentrated in PNS2, PC2 and Coatings  Ashland manufacturing fixed costs are ~$700MM1 per year...  ... which drove significant cost challenges from 2013-2016  Fixed cost per unit  Production volume  Texas City,TX  Poole, UK  Wide range of asset intensity  Improve competitivenessBetter asset utilization: Absorption opportunity  4    2016  2013  2013  2016 
 

 Driver  Action  Example  TheoreticalPotential1    Lower cost/unit by running plant at 95% capacity  Temporarily sell in non-strategic markets  $125MM    Fill plants at current average margin  Repurpose assets  $100MM    Consolidate plants/lines (products produced at 2 or more plants)  Underutilized plant closure  $30MM    Improve network product mix  Optimize source plant location  $25MM    De-tolling  Bring operations in-house  $20MM    Leverage current capabilities to upgrade product sales mix  Focus on profit velocity  $25MM    Improve in-plant operations  De-bottleneck  $15MM2  Excess/ Underutilized Capacity  Constrained Capacity  See appendix for specific examples1. Not additive 2. Represents potential opportunity over three years  Page 120  Page 121  Page 122  Page 124  Page 123  Page 125  Improve competitivenessBetter asset utilization: Actions to leverage capacity  4  Tremendous profit potential with existing assets 
 

 Aligned asset platforms to commercial leadershipRedeployed commercial, operations, and R&D resources which leverage our unique production capabilitiesEnhance sales incentive systemDefine manufacturing improvement opportunity listEstablish new cost per unit metrics to achieve full P&L impactCommission steering team with regular review cadence  Improve competitivenessBetter asset utilization: Accomplishing our initiatives  How we will accomplish our initiatives  4    Last 3 months  To be initiated  Last 12 months  Current implementation  Legend: 
 

 Marketing  Pricing  Sales Force Effectiveness  Deploy new structureExtend to regional view  Price over raw material inflationTarget $30MM "pocket price" improvementsEnable profit clarity  change sales incentive system  Enhance value selling trainingImprove use of Salesforce.comDevelop customer impact statementsRedesign sales incentivesRevitalize distribution strategy  Improve competitivenessCommercial Excellence: Action plan  5  Action Plan    Last 3 months  To be initiated  Last 12 months  Current implementation  Legend: 
 

   Improve competitivenessCommercial Excellence: Initial focus on price to value  Dedicated pricing leaders and analystsImplemented a pocket price tool for all businesses in order to assess price outliers and make smart price changesImplemented a price yield tool to track progressEstablished new order policies: order size, special requests, order changes  "Pocket Price"  Standardizing terms: >280 different credit termsAssessing rebates and ensuring impact as contracts renewDeep analysis of freightDevelop target pricing process to enable sales teams to respond and change incentives accordingly  $15MM identified to date  5    Last 3 months  To be initiated  Last 12 months  Current implementation  Legend: 
 

 Improve competitivenessCommercial Excellence: Initial focus on price to value    Profit Visibility/Sales Incentives  Align FPA resources with BUImplement new financial reporting to enable better profit driver visibilityProfit across the globeVariable vs. fixed costCost by batch sizeRedesign sales incentive plan with:Incentive to leverage excess capacity in the systemMatrix of GP$ and GP%  5    Last 3 months  To be initiated  Last 12 months  Current implementation  Legend:  Fixing visibility lost by merging IT systems 
 

 See appendix for specific examples1. Total Ashland; includes Intermediates and Solvents, and excludes Pharmachem  10% volume leverage on flat SG&A improves EBITDA margins by ~90 bps1  Near-term actions identified to reduce SG&A1    Opportunity  Global Business Services/Outsourcing    $15-25MM  Footprint Optimization    $5-10MM  Delayering    $5MM  1  2  3  Improve competitivenessOffset SG&A inflation: Near-term opportunities  6 
 

   Dublin complex housed ~1400 employees in 2007; now less than 500The current cost per employee is roughly $20K / yearWe are consolidating out of ~160K square feet of space in Dublin Administration building  Example: reducing 6 sites will save ~$6MM  Improve competitivenessOffset SG&A inflation example: Dublin, OH campus  6 
 

   Global Business Services (GBS)Two Global Headquarters of excellence in Poland and India with total headcount of 340Provides back-office support for Finance, IT, EH&S, Supply Chain, Legal, and othersContinuous improvement focused with established governance model and metrics  Back-office optimization started as a cost savings exercise...    40%  10  Of activities found to be 'waste'  Processes redesigned/ steps removed   12  1  Opportunities for automation  Process to be off-shored  ...now we're optimizing through process improvements  In January, we redesigned our accounting close to save time and reduce cost  2  33%  Days potentially taken out of close1  Reduction in time on key closing activities    1. Expected date of accelerated close implementation is month end June 2017  Improve competitivenessOffset SG&A inflation: Optimizing back-office ops  6     
 

 Note: Adjusted EPS growth, Adjusted EBITDA and Free Cash Flow are forward looking non-GAAP financial measures. See Slide 1 for an explanation for why reconciliations are not available to the most directly comparable forward looking GAAP financial measure; 1. Cumulative Free Cash Flow generation over target period less certain key items; 2. New and Proprietary Product Sales defined as new products in the market for <= 5 years and patented products for life of patent * = 2021 Adjusted EBITDA Target  Driven by 7 core levers      New actions to sustain and grow premium mixEvolve business portfolioImplement new market strategiesExpand new and proprietary product sales2 (NPI)New initiatives to improve competitivenessAsset utilization programsPrice to value effortsSG&A inflation initiatives      Ensure CapEx plus changes in working capital <6.5% per year        Adjusted ASI EBITDA (%) >25%*  Cashgeneration1$1B+   Adjusted EPS growth (CAGR)>15%  2018 – 2021 Performance Targets 
 

   1) Figures are for Ashland (whole company). Totals do not sum to 100% due to rounding.  We spent ~21% of CapEx on growth from '13-'16With current utilization rate of 75-80%, we have 'room to grow' with reduced capital expenditures  2013-2016 CapEx spend1  Over past ~4 years, ~32% of CapEx spent on growth and cost reduction  With many investments complete, we're able to reduce CapEx  13%  Regulatory & Compliance  21%  Growth  11%  54%  Cost Reduction  Stay in Business  CapEx + change in working capital <6.5%/yearCapEx: Leverage existing investments  7     
 

     300 bps reduction in inventory as percent of sales metric results in a $60MM inventory reduction  In early 2015 we struggled with on-time delivery We built inventory to support improvements in shipping performanceStructural improvements have been made in inventory management, forecasting, and order execution enabling inventory reduction efforts without impact to service  Targeting reduction in inventory  CapEx + change in working capital <6.5%/yearWorking Capital: Reducing ASI inventory    Shipping Performance  Inventory(% Sales)  January 2015  April 2016  ~96%  ~88%    ~24%  ~21%    7 
 

   Summarize our evolution and define the New AshlandDefine financial targets to create shareholder value and their connection to:Core operational levers to deliver financial targetsMarket strategies to accelerate profitable growthClarify capital allocation policies to turn cash into valueProfile dimensions to drive strong execution  Our purpose: To define the New Ashland's shareholder value creation strategy 
 

 Returned over $2B to shareholders in the last 3 years  Established Asbestos Trust  Signed agreement to acquire Pharmachem  Assigned majority of pension liabilities to VVV  Paid down $1.9B debt  Capital allocation policiesRecent actions  Active capital allocation 
 

 Transaction to be fundedwith bank financing and available cash  Transaction multiple of ~10.5x Pharmachem’s estimated fiscal 2017 adjusted EBITDA; ~7.5x after adjusting for expected cost synergies and tax optimization  Expect to be accretive to EPS in first year following close of transaction and to enhance long-term EPS growth; also expected to generate significant cash flow  Strong cash conversion and expected ~$10MM cost/~$110MM NPV tax synergies  Transaction expected to close by the end of June quarter  Purchase price of$660 million                          Capital allocation policiesPharmachem transaction overview  Compelling Pharmachem financial equation 
 

 Eliminate debt related to Pharmachem acquisitionReduce other debt as appropriateMaintain mid to high BB credit rating  Debt Reduction    First priority  Other allocation priorities  Selective small to mid-sized acquisitions with attractive returns well in excess of our cost of capital  Acquisitions  Capital expenditures + working capital investment < 6.5% of salesWilling to pursue high return opportunities  Organic investment  Return cash to shareholders  Opportunistic after leverage reduced  Share repurchases  Yield and payout ratios in line with specialty chemicals peers  Dividends  Capital allocationCurrent priorities  Primary focus – debt reduction 
 

 Note: Adjusted EPS growth, Adjusted EBITDA and Free Cash Flow are forward looking non-GAAP financial measures. See Slide 1 for an explanation for why reconciliations are not available to the most directly comparable forward looking GAAP financial measure; 1. Cumulative Free Cash Flow generation over target period less certain key expenditures* = 2021 Adjusted EBITDA Target  Financial targets to create shareholder value          Adjusted ASI EBITDA (%) >25%*  Cashgeneration1$1B+   Adjusted EPS growth (CAGR)>15%  2018 – 2021 Performance Targets 
 

 Break 
 

 Pharma and Nutrition 
 

   Today's focus      Nutrition  Pharma  Cellulosics: HPC, HEC, HPMC, CMCAcetylenics: PVP, PVPP  Cellulosics: CMC, HPC, HPMCAcetylenics: PVPP  Pharma & Nutrition Specialties (PNS) Pharmaceutical generates the majority of PNS profits 
 

   Areas of strength    Binding &disintegration  Pill & tabletcoatings  ~12%of ASH FY 2016 sales  Expert in the $2.1B oral solid dosage (OSD) excipient market with ~3% projected CAGR to 2020 driven by global middle class expansion, aging population, and growth in genericsOur excipient portfolio is highly differentiated, however, product sub-segments have seen increasing price pressureRecent strong unit volume growth; revenues tempered by modest pressure in the price sensitive product sub-segment  Solubilization  Controlledrelease  We enable functionality that drug manufacturers need to promote and launch safe, effective, and consistent products  Pharmaceutical overview  $349MM  Source: IMS, BCC Research, Kline, internal estimates 
 

               Excipients are small but critical part of every pill  Actives / Everything else  Functional excipients<5%  Marketing / R&D  $6.4 B  Excipient market  Not interested  Attractive adjacency  (e.g. biologics, injectables)  (e.g. colorants, fillers)    Lower margin  Higher margin  Our focus: Oral Solid Dosage$2.1 B   1: Excipients include all non-active ingredients in all pharmaceutical products (e.g. oral solid dosage, dermatological, injectable, etc.)Source: IMS, BCC Research, Kline, internal estimates  Functional excipients account for a small fraction of total pill cost  We are well positioned in excipients with expansion opportunities      We're focused on the higher margin segment of the OSD market 
 

 Key strategic themes  1  Pharma is a growing profit engineGrowth driven by mix shift towards higher-margin products and underlying volume growth  2  We have a winning strategyUtilizing the strength of our portfolio to deliver customized excipient solutions with industry leading tech service  3  We are investing to accelerate growthCapitalizing on recent regional and technological investments  4  Expansion into NutraceuticalsPharmachem acquisition expands our position in this attractive high growth market 
 

   Pharma is a growing profit engineStrong performance driven by cellulosics            3% industry growthImproving mix towards cellulosicsCellulosics value pricingCapacity limitationsMore competition in portions of the acetylenics product line  ü  ü  ü      2.4%  Volume growth  GP margin expansion  60 bps  60%  40%  20%  0%  100%  80%  Cellulosics  Non-cellulosics  Cellulosics as % of Pharma GP  1  Note: All time periods shown are 2013-2016 and exclude divestitures for comparability  We have grown margins by driving portfolio to differentiated, cellulosics products  Strong unit growth and margin expansion('13-'16)  Drivers of our performance('13-'16)  2013  2016     
 

 Winning strategyBroad portfolio of functional excipients  diabetes treatment  Metformin    Major generic approached us to help:increase swallowabilityreduce tablet size  Our solution utilized a unique blend of our excipients, reducing tablet size by 20%  10  Functional chemical platforms  ~700  Uniquely tailored SKUs    Example  2  We have the broadest portfolio of functional excipients in the market  We solve complex problems with our multi-platform portfolio      We win by leveraging the 'full excipients catalog' 
 

 Winning strategyDelivering tailored solutions with formulation expertise  ~25% excipient revenue from new products  75 dedicated scientists and an interconnected network of global labs allows us to work alongside our customers  We launched a novel DC HPMC excipient that enabled 150% faster material flow  Resulting in increased customer throughput without sacrificing performance  2  We bring new products to market through customer collaboration  Tailored solutions for unique problems      We win by tailoring solutions to meet customer needs  Example 
 

   Investing to accelerate growthCapturing regional growth with targeted investments  We're positioning ourselves to grow in Asia through capital investments  Global pharma growth lead by Asia      1%1  US pharma growth  2%1  EMEA pharma growth  6%1  Asia pharma growth  Asia growth ~2X global average, driven byContinued population growthEmergent middle classIncreased prevalence of modern medicineGrowth in generics  China  Opened manufacturing facility in 2016Upgraded Pharmaceutical Technical Center in 2016  India  Opened Pharmaceutical Center of Excellence in 2014    3  1. Estimated growth rate 2017-2020Source: BMI; internal estimates  Asia accounts for ~30% of our portfolio today and continues to grow as we invest 
 

   Investing to accelerate growthImproving the mix  Klucel® HPC capacity expansion online 2017  Benecel® HPMC capability improvements online 2017  Address non-pharma related volume declines with 'fill the plant' sales efforts and network / sourcing optimization  Asset optimization strategy        'Optimization': Doel, Belgium plant  Invested to expand pharmaceutical capabilitiesAllowing us to compete in a $150MM market      Innovative packaging and higher purity products for niche applications  Offerings enhancement      Manufacturing excellence and Lean Six Sigma implementation  Manufacturing cost reductions      Example  3  Expanding capacity and capabilities in high-profit cellulosics  Improving acetylenics position      We're investing to capture 'premium' growth while improving our acetylenics position 
 

   Investing to accelerate growthFocused innovation to enable bioavailability  Lopinavir    We developed a novel excipient package to reduce side effects and improve solubility  We were asked to help remedy side effects to minimize regulatory risk  0%  20%  40%  60%  80%  100%  Pipeline drugs  Market drugs  Drug solubility classification (BCS)  High solubility  Low solubility  HIV treatment  3  1: Solubility as defined by BCS Class II & IVSource: Kline  Solubility1 issues ahead in the pharma pipeline  Our solubility solution helped fix an HIV active with absorption problems      Bioavailability is the next frontier and we're well positioned to win  Example 
 

       Expansion into nutraceuticalsNutraceuticals is well-aligned compliment to PNS    $39B  Globalmarket size  6%  Forecast growth rate  40%  US share of market  Market metrics  Aging populationMiddle class growthHealth and wellnessNatural and clean labelFunctional nutrition  Market trends        Nutra-ceuticals  Pharma – Ashland strengths:Formulation expertisePolymer scienceCustomer intimacy Global lab network  Nutrition – Ashland strengths:Particle engineeringPolymer scienceCustomer relationsApplication expertise  4  Source: BCC Research, internal estimates  Nutraceuticals is a strong existing market for Ashland, however, we lacked the critical mass to penetrate further 
 

   Expansion into nutraceuticals Pharmachem is a strong fit  ~$300 MMFY 2016 Revenue  Manufactures custom and branded nutraceutical formulationsGlobal leader in all-natural fragrance fixatives  Leverages Pharmachem: nutraceutical channels to grow our excipients & food additives businessLeverages Ashland: channel strengths outside the US and in food and personal care marketsCombined: delivers more advanced, fully formulated solutions to the global nutraceuticals market  +  Nutrition and Health  Fragrance and Flavors  Food, Beverage and Personal Care   Custom Manufacturing  Not included in acquisition economics  4  Pharmachem allows Ashland to leverage strengths in nutraceutical markets  Pharmachem is a leader in custom nutraceutical offerings and solutions     
 

 Pharma will continue to be an engine for profitable growth at Ashland  We are set up for success  Healthy underlying market demandMix shift towards high-margin cellulosicsCellulosics value-pricing  Comprehensive portfolio of excipient technologiesUniquely collaborative technical service teams          Adding cellulosics capacity and capabilities to serve growing demandEnhancing acetylenics strategyDeveloping improved solubilization technology      Pharmachem acquisition accelerates market entryAdditional upside synergies to be captured      1  Pharma is a growing profit engine  2  We have a winning strategy  3  We are investing to accelerate growth  4  Expansion into Nutraceuticals 
 

 Personal Care 
 

   3 specialty areas    Hair care  Skin care  Oral care  ~19%of ASH FY 2016 sales  We innovate scientifically proven solutions for personal care with specialty ingredient platforms in VP, VE, cellulosics and biofunctionals  Leader in $6B specialty ingredients market with ~3% projected CAGR to 2020 due to mega-trends: rising emerging market middle class and shift to higher-price natural productsStrong volume growth 2013-16, driven by specialty areas that are high-performance and innovation-focused (e.g., biofunctionals) Some margin and pricing pressures due to increased competition in the lower end of our offering (e.g., purchase-for-resale)   Source: Euromonitor, Datamonitor, Kline, BCC, Internal estimates  Personal care overview  $566M 
 

         Hair care  Skin care  Pioneered sunscreen waterproofingTop 3 in skin rheologyTop 5 in UV absorbersTop 10 in biofunctionals          Top 3 in styling fixativesTop 3 in hair rheologyTop 10 in conditioning polymers                                                                                                          Three business areas with strong market presence   Source: Kline, Internal estimates  Oral care  Leader in functional polymers and denture bioadhesives Pioneered whitening actives delivery                                  Broad product range and leading positions in hair, oral and skin 
 

 1  Maintain strong focus on new, highly differentiated applicationsEarn a premium with unique technologies, formulation expertise and customer enablement  2  Accelerate growth from "naturals" and emerging market trendsGrow natural & sustainable portfolio and enable rapid regional launches with regional centers of excellence  3  Improve margins in more competitive segments of the marketIncrease asset utilization, engineer better processes and leverage suppliers partnerships  4  Leverage synergies from PharmachemStrengthened biofunctionals, improved channel access, and enhanced “full solution” offerings  Key strategic themes 
 

     Reputed platforms developed by 125 world-renowned scientists in 9 regional centers of excellenceSkin biology expertiseRoot-to-tip hair careOral actives deliverySensory excellence  Unique technology                        Customer enablement  Leading end-to-end product launch supportRegulatory clearanceClinical testingClaim substantiationConsumer value articulation  Formulation expertise  Expertise in creating products with enhanced performanceSustainable, cost effective alternativesAdvancement of customer formulationsAshland-developed “complete solutions”          1    3 areas of strength  Upgrade mix  Focus on new, highly differentiated applicationsStrength in technology, formulation and customer enablement  1 
 

 FiberHance™ BM    Unique technology      Customer enablement  Formulation expertise          Our innovative and patented bond multiplier chemistry addresses a key market need in repairing hair break-age from coloring and straighteningDisplaces higher-price alternatives with cost-effective manufacturingProven efficacy on all hair types, including Caucasian, Asian and African  Focus on new, highly differentiated applicationsOur unique technology repairs hair from root to tip  FiberHance™ BM recently won prestigious "Best Functional Ingredient" gold award at In-Cosmetics                    1  Recent launch already garnering significant interest from multinationals  Example 
 

   Our unique whitening technology improves the stability and delivery of whitening agents – putting professional-grade whitening solutions in over-the-counter consumer products  We made it possible for a major oral care firm to formulate peroxide in its whitening product – leading to one of the most successful oral care product launches ever  Focus on new, highly differentiated applicationsOur technology enables next gen whitening products  Source: Technavio, Euromonitor  1  Whitening toothpastes are the fastest-growing toothpaste category – costing 2x+ per oz. as much as traditional counterparts      Customer enablement  Formulation expertise                            Unique technology      Example 
 

        Bayer adopted our sunscreen mousse prototype to develop a new and unique whipped sunscreen that applies evenly and leaves skin feeling softer and smoother  We work with customers to formulate customized sunscreens that last longer, feel less greasy - and have novel textures  Sunscreens are a $10B market at retail; those with unique Ashland formulations commanding a premium and enhancing claims  Source: Euromonitor, internal estimates  Focus on new, highly differentiated applicationsOur formulations set premium sunscreens apart  1      Customer enablement  Formulation expertise                            Unique technology  Example 
 

   We help our customers to ensure end-product success by substantiating new & unique label claims, navigating regulatory challenges, and communicating value to consumers   Ashland’s Vincience team innovated a black truffle extract to energize skin cells in Estée Lauder's prestige Re-Nutriv "Ultimate Diamond" line...... and helped them demonstrate efficacy and develop consumer marketing that brought to life the story "from soil to bottle"      Customer enablement  Formulation expertise            Focus on new, highly differentiated applicationsWe help develop products that ensure customer success  Unique technology                    Retail price$375/bottle  1  Our ingredients provide functionality that enables customer price premiums      Example 
 

 Focus on cellulosics, acetylenics and biofunctionals where we have deep experience and manufacturing scale  ✓  ✓  ✓  Engage the customer  Focus on core chemistries  Move quickly to market  Strong value proposition  Decentralized development at regional centers of excellence that are able to customize and test in-market rapidly and economically  ✓                  Redesigned R&D process for stronger early-stage marketing input to ensure value proposition matches market needs and end user expectations  Beta-test earlier and more often to increase customer engagement and intimacy, and enhance collaboration   Focus on new, highly differentiated applications We have renewed focus on what drives success in innovation  1 
 

 Source: Transparency Research  Natural, organic and ethical products will outgrow the market ~3x to 2020We are ready today  Accelerate growth from "naturals" trendWe are actively growing our natural and sustainable portfolio  2  Rest of portfolio    Botanicals  Cellulosics  Guar    Johnson & Johnson uses Zeta Fraction™ technology in its Aveeno range to improve radiance and provide soothing properties  Zeta Fraction™      Zeta Fraction™ uses live plants in a natural, low-energy, zero-waste process to deliver high-efficacy actives  Just-launched Harmoniance™ captures the metabolic activity of Sacred Lotus to deliver age-defying skin care benefits  Example 
 

   Meeting local challenges with regional centers of excellence  Source: Euronomonitor  Unique preferences, habits, hair/skin types and climates driving personal care purchase behaviorGreater e-commerce role in product selection and adoption, requiring accelerated innovationComplex formulation engineering needed to hit lower price point – while retaining quality and margins  Customers require different capabilities to succeed in emerging market  ~85% of end-market growth to 2020 will come from emerging marketWe are ready today  Accelerate growth from emerging market trendOur labs will help customers capture dynamic regional trends  We helped an Indian oral care provider develop a new anti-cavity toothpasteWe built upon this success by expanding our global network of regional centers of excellence  2  Example 
 

 Consolidate purchases to fewer, valued suppliersOptimize global procurement systemDrive predictability with long-term contracts  Partner with suppliers              Asset utilization-focused R&DTargeted sales and marketing efforts based on enhanced order-level informationRationalize product offerings  Increase asset utilization                            Simplify complex manufacturing processesAs appropriate, migrate from batch to continuous processesContinue to drive continuous improvement, cost-out programs  Better engineer processes        Improve margins in more competitive segmentsAsset utilization, better processes and suppliers partnerships  3 
 

 Contract manufacturing   Fragrance market access  Botanical actives extraction  Aloe Vera    Strengthen biofunctionals platform with new botanical extraction capabilities  Adds new active to biofunctional arsenal as well as plant sourcing and processing capabilities  Improved channel access for high-growth areas (e.g. fragrance encapsulation)  Enhances the adoption of our full solutions by providing avenue to push formulations to finished products  Leverage synergies from PharmachemNew capabilities and know-how to strengthen existing initiatives  Acquisition of Pharmachem will accelerate growth of both companies  4 
 

 We are set up for success  Personal care will be one of Ashland's core growth drivers   Maintain strong focus on new, highly differentiated applications  Improve margins in more competitive segments of the market  Accelerate growth from "naturals" and emerging market trends  Leverage synergies from Pharmachem  Unique technologies that expand applicationsFormulation expertise that sets premium products apart from the mass marketCustomer enablement to bring products to market at a premium price pointRenewed focus on innovation success drivers  Increased asset utilizationProcess engineering to reduce production costsPartnerships with suppliers  Strengthened biofunctional with Aloe Vera and botanical extractionNew channel access through fragrancesContract manufacturing enabling increased adoption of full solutions  Growing natural and sustainable portfolioNetwork of regional centers of excellence to enable rapid launches and customer interaction in emerging market              1  2  3  4     
 

 Industrial Specialties 
 

           ~33%of ASH FY 2016 sales  We provide high performance products that are typically a small percentage of the total cost of the end product, but provide significant value and impact  Industrial Specialties (IS) overview  $990MM  Common business model:Focus on premium sub-segmentsClose collaboration with customers utilizing our regional technical service & expertise Disciplined price and cost managementEnsure high asset utilization for high asset intensity product lines 
 

 IS – Other Industries $337 MM  PerformanceSpecialties  Construction  Focus on unique applications with complex performance needsTarget selective areas for growth   Energy        Energy is a much smaller portion today of Industrial Specialties’ portfolioBeginning to see an up-tick in the market as oil prices have recovered  Focus on premium applications & improving customer productivitySignificant cost restructuring and asset focus will drive success 
 

     Our 3 strengths    ~11%of ASH FY 2016 sales  Market leader in $2.8B market for architectural coatings additives with 3% CAGR; the market is primarily driven by remodeling & new construction and a shift towards premium paintsOur products are 2-4% of the paint can but provide high value in use to the painter and property ownerOur segmented strategy is driving growth in the premium segment, while improving our cost position  We solve rheology & formulation challenges for architectural coatings with industry leading technologies, a differentiated product portfolio, and award winning technical service  Source: KNG, IHS, internal estimates  Industrial Specialties – Coatings  $321MM  Rheology  Foam control  Surfactants 
 

 1  We are the premier rheology provider60+ years expertise in architectural coatings, #1 in HEC, industry standard for rheology and coatings additives  We're focused on further strengthening our leadership in HECOur global presence allows us to manage cost and customer supply, ensuring we stay #1  3  Coatings: key strategic themes  2  We're driving a more premium mix through product differentiation, innovation, and customer intimacyOur premium product lines and formulation expertise enable customer productivity, improved paint performance 
 

   We span the paint range from low to premium with the key rheology chemistriesWe continually innovate rheology chemistryWe advance measurement science   Global manufacturing capabilities  Patent pending ART(Application Reader Technology) device  We are the premier rheology providerWith strong capabilities and technologies  1  We are the leading HEC producer & the only one with manufacturing capabilities in 3 regions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 

 Enabling customers with premium productsOur expertise and technical support leads the industry  Switzerland  Italy  France  Portugal  Working together, we improved viscosity and enhanced color for a new solvent-free paint  Problem: customer needed a more effective rheology agent Solution: partnered to formulate our Aquaflow™ product for superior efficiency & application feel across multiple brands  2  Customers come to us to solve their hardest rheology problems...  ...and develop new products      Examples  With our 6 regional tech centers we partner with our customers to deliver the perfect rheology solution for the local market 
 

   We're staying cost competitive in HECProactive actions to improve HEC leadership position  Increasing research focus in process technology improvements                            Accelerating on-going manufacturing cost reductions with lean six sigma program              Implementing new asset optimizationstrategy aligned with commercial strategy        Soft pricing environment...Decreased demand because of softness in energy marketsGlobal capacity additions have increased supplyBut stable volume demand...Firm demand in core applications   3      HEC market overview  Actions  We are executing to ensure we stay competitive in any market environment 
 

   Niche player in the $22B specialty formulated adhesives market with a 3% CAGR. Adhesives is a materials business with high performance demands and continual innovationOur Adhesives portfolio is nimble, capturing a premium in niche applications throughout the market  We enable high performance applications across end markets through customer centric innovation, pioneering new applications, and renowned expertise  Industrial Specialties – Adhesives    Our key end uses    ~11%of ASH FY 2016 sales  $332MM  Packaging & Graphics  Structural  Transportation  Source: KNG, IHS, internal estimates 
 

 2  We win with customer focused innovation, R&D, and tech service30% of revenue generated from new products  1  Adhesives is a significant contributor to Ashland's profit and has demonstrated strong growthSuccessful value proposition; disciplined pricing and cost management; leadership position in Pressure Sensitive Adhesives (PSAs)  We're accelerating growth by extending our global reachCapacity expansions / additions in UK to support premium adhesives  3  Adhesives: key strategic themes 
 

   Our Success Model  Adhesives is a growing, high profit contributorLeadership position in PSAs drives significant growth  Target specialty niches with high performance demands in:GraphicsSpecialty tape & LabelPackaging Capitalize on mega trends to accelerate growth50+ years experience in automotive adhesivesConstantly upgrade our product mixFast innovation through deep technical expertise and customer collaborationPrice and cost management  Transportation adhesivesStructural adhesives  1  We have established a clear leadership position in water based and solvent PSAs and great niche positions in other segments     
 

 Problem: adhesive for perishable product with heat sealing sleeve label Solution: worked closely through scale up with our Pureseal™ productSuccessful label for Yoplait  Our R&D and tech service are always solving for our customers, driving strong profit growth  We win with innovation, R&D, and tech serviceSolving customer's problems through collaboration  New Product:Heat seal adhesive  Examples  2  Problem: need ability to seal joints & seams of house wrap to withstand various temperatures & multiple surfacesSolution: developed Aroset™ PSA: Reduces waste Adheres to multiple surfacesHigher performance at various temperatures  New Product:Adhesive for house wrap tape  Problem: strong adhesive performance & low migration for food safetySolution: developed UV cure coatings, Purerad™Low migration for food safetyExcellent coat-ability  New Product:UV cure coatings 
 

   We are accelerating growth with global reachInvestments in assets and R&D to meet global needs  New structural adhesive Products for Europe  Capacity expansion to extend geographic penetration  Regional R&D / technical service centers      Innovation from global labs delivers 30%+ revenue from new productsDublin, OhioKidderminster, UKShanghai, ChinaMumbai, India  Kidderminster, Worcestershire, UK  Capacity expansion in the UK will:Provide a platform for growth Enable customized service to our European customers    We provide adhesives to Porsche and Mercedes, which enable:Improved processing and application timeSuperior adhesion & robustness in high performance situations      3  Expansion to enable faster growth  Examples 
 

 Industrial Specialties will continue to deliver innovation around customer needs  We are set up for success  Growth in higher-margin premium syntheticsAdhesives growth and disciplined pricingSelective growth & optimization in Other Industries  Adapting marquee coatings products for diverse customer needsAdhesive application innovations for direct customers & end-usersLocal service & customized solutions earn us a premium across the Industrial portfolio          Cost reduction and process improvement in HECSynthetic rheology technology advancesPioneering new applications and markets in AdhesivesDriving asset optimization across the portfolio      1  Strong profit generation  2  We win through customer collaboration  3  Global growth & capabilities drive success 
 

 Composites 
 

       Unsaturated polyester resins (UPR)  Gelcoat  We solve customer problems around the world, improving the integrity and allure of their composite products with high performance resins  Premium resins used in structural & semi-structural applicationsInfrastructure – corrosion & fire retardantAutomotive & heavy duty truckMarineBuilding & constructionStrong gross profit growth 2013-16 despite flat volume due to aggressive cost & margin managementSegmented our business into core (UPR) and specialties (EVER, Gelcoat)  Composites overview  ~22%of ASH FY 2016 sales  Epoxy vinyl ester resins (EVER)  Specialties  $669M  Core 
 

 1  Accelerate growth in the premium "specialties" segmentRe-align resources, leverage 50+ year track record (Derakane ™), global reach, and world class technical service to accelerate growth in high-spec segments (e.g. corrosion, marine, automotive)  2  Manage our cost structure in non-specialty core UPRContinue to execute aggressive cost management through footprint optimization, cost-out initiatives, and facility utilization  3  Drive cash generationMargin growth, with low working capital and Capex requirements, support significant Ashland overhead, and cash generation  Key strategic themes 
 

           Infrastructure  Tub & shower  Pipes  Corrosion  Fire Retardant  Electrical   Panels  Marine  Automotive  Polymer Concrete  Performance Reqs  Degree of Specification  "High-spec"  Eng. Stone  Increasing Gross Margin %  Targeting "high-spec" applications  Source: IHS; Internal estimates   High-spec ~30% of the $9B UPR market – but ~45% of profits   Accelerate growth in the "specialties" segmentWe focus on high-spec resins  1 
 

 Our Epoxy vinyl ester resins have...Higher strengthBetter corrosion resistance & durabilityWider operating rangeLower maintenance  Strong Derakane™ brand, technical service, global reach & over 50 years of case histories    Drivers of value  50 years of proven experience with Derakane ™Dedicated science centerWorld-class technical service & end-user selling teamHighly specified – “When failure is not an option”Lower “lifecycle costs”  Accelerate growth in the "specialties" segmentWe are the brand name in corrosion resistance  1  We earn a premium in EVER through superior reliability and lower lifecycle costs  Example 
 

 Accelerate growth in the "specialties" segmentOur gelcoats have superior performance  1    Drivers of value  Small part of cost, but significant cosmetic and functional impact - it’s what you see in the showroomIndustry-leading application knowledge and formulation supportHigh degree of customer touch and customization  Maxguard™ gelcoats, outermost layer on a boat hull, ensures the integrity & adds to the allure  Our gelcoats have superior...Gloss / depth of colorBlush / UV resistanceWeather-abilityConsistency  We differentiate in gelcoats through customization and quality  Example 
 

 Accelerate growth in the "specialties" segmentOur UPR is used for high-end, high-spec applications  1    Drivers of value  Dedicated Engineered Stone lab & global technical supportProduct customizationImproved performance vs. competing alternativesReduced waste during productionLeverage multi-generational product planning  Polaris™ engineered resins improve quality and durability and provide a range of design options  Our UPR meets the most demanding applications...Durable & stain resistantEfficient processing and manufacturabilityHigh-gloss, ultra-white enabling marble / granite appearance  We seek premium applications within the UPR market  Example 
 

   Maintain efficient network  Drive cost out initiatives  Asset utilization                                                                                      EMEA:3 plants  Americas:7 plants  Asia:2 plants  Manage our cost structure in core UPRMulti-pronged strategy to stay cost competitive  2  1  2  3  Actively manage footprint to optimize cost (3 facilities closed in past 5 years)Leverage Reichhold acquisition to support EMEA cost initiatives (e.g. logistics, CapEx, etc.)  Drive profit improvement opportunities (e.g. waste & utilities cost reduction)De-bottle necking & yield improvementDublin campus consolidation (~$6MM annual savings)  Implement performance metrics and incentives to drive utilizationLeverage local, regional teams to win & drive business targeting >90% utilization  Aggressive actions to lower costs 
 

 Gross profit %  Drive cash generationComposites has driven significant cash contribution  3  Low capital Intensity    Focus on driving working capital 7% is typical in compositesLow capital spending (<5% of sales)  Contribution to rest of business    Absorbs significant portion of overall Ashland corporate overhead          Strong focus on mix and cost 
 

 Composites will drive profitability with growth in high-margin segments and cost control  Accelerate growth in the premium ‘specialties’ segment  Drive cash generation  Aggressively manage our cost structure  We are set up for success  50+ year track record (Derakane ™)Global reachWorld-class technical service  Margin growthLow working capital and Capex requirementsSupport significant Ashland overhead  Footprint optimizationCost-out initiativesFacility utilization             
 

   Summarize our evolution and define the New AshlandDefine financial targets to create shareholder value and their connection to:Core operational levers to deliver financial targetsMarket strategies to accelerate profitable growthClarify capital allocation policies to turn cash into valueProfile dimensions to drive strong execution  Our purpose: To define the New Ashland's shareholder value creation strategy 
 

 Core levers    Innovation  Pricing/Commercial  Asset utilization  SG&A flat  WC/CapEx    Tied to compen-sation  - 8 of 11 leaders new or in expanded role  - Newmarket and operational strategies  - New metrics and scorecards tied to account-ability  - Lean Six Sigma programs - New Project Manage-ment Office  Disciplined cadence  Enabling systems  Metrics  Strategy/Approach  Leadership/Org                  - New operating committee review cadence      -Expanding perform-ance factor-EPS is primary LTI1 metric      1. Long Term Incentive  Focus, ownership, and accountability  Drive strong execution—5 system elements  Drive strong execution—5 system elements 
 

 Pillar Priorities for 2017Increase new product impact to 30% of sales by 2020Deliver our fiscal 2017 planDrive price-to-value initiative to yield >$30 millionIncrease plant utilization/absorption by $30 millionDrive flat SG&A spend vs. prior year    Internally connecting our core operating levers to our blueprint  Pillar PrioritiesTake new actions to sustain and grow premium mixContinue to evolve business portfolioImplement new market strategiesExpand new and proprietary product sales1 (NPI)Pursue new paths to improve competitivenessBetter asset utilizationPrice to valueOffset SG&A inflationEnsure CapEx plus changes in working capital <6.5% per year  1. New and Proprietary Product Sales defined as new products in the market for <= 5 years and patented products for life of patent  Drive strong execution 
 

 Note: Adjusted EPS growth, Adjusted EBITDA and Free Cash Flow are forward looking non-GAAP financial measures. See Slide 1 for an explanation for why reconciliations are not available to the most directly comparable forward looking GAAP financial measure; . Cumulative Free Cash Flow generation over target period less certain key expenditures; 2. New and Proprietary Product Sales defined as new products in the market for <= 5 years and patented products for life of patent * = 2021 Adjusted EBITDA Target  Driven by 7 core levers    New actions to sustain and grow premium mixEvolve business portfolioImplement new market strategiesExpand new and proprietary product sales2 (NPI)New initiatives to improve competitivenessAsset utilization programsPrice to value effortsSG&A inflation initiatives      Ensure CapEx plus changes in working capital <6.5% per year        Adjusted ASI EBITDA (%) >25%*  Cashgeneration1$1B+   Adjusted EPS growth (CAGR)>15%  2018 – 2021 Performance Targets 
 

 

 Appendix 
 

 Biographies/key accomplishments    KevinWillisLeads worldwide financial functions and processes including the transformation to new Ashland  BrianMcGrath27 yrs with Ashland in various leadership rolesMoving to Zurich in June to also lead European Leadership team  Dr. OsamaMusaMore than 350 patents and patents pendingPublished book on Maleic Anhydride based materials  DaveNeubergerFormer director Ashland IR, 10 yrs at AshlandWharton Palmer Scholar   AndyJohnston23 yrs at Ashland focused on composites and adhesivesExperience in turn-arounds, growth, M&A   Anne SchumannMulti-faceted career with leadership roles in finance, IT, supply chain & HR  SuzanneRowland17 yrs of senior executive and Board experienceDriver of high performance in complex markets   Vito Consiglio23 yrs in Specialty ChemicalsGlobal JV, PE and M&A experience  PeterGanz30 yrs private and corporate law experience 12 yrs general counsel for multinational corporations6 yrs at Ashland  JeanZappia30 yrs chemical industry experienceFeatured in "Successful Women in Chemistry - Corporate America's Contribution to Science"  Dr. KeithSilverman23 yrs in pharmaceuticals- R&D, EHS 14 patents5 yrs at AshlandBoard Member SOCMA  Operating Committee  Executive Committee    BillWulfsohn  Former CEO Carpenter TechnologyPrevious leadership roles at PPG, Honeywell, Morton International / Rohm & Haas Serves as a Director of PolyOne Corporation 
 

 Acronym reference guide  Acronym  Definition    Acronym  Definition  APAC  Asia Pacific Region    LATAM  Latin American Region  ASH  Ashland    LMW  Low Molecular Weight  ASI  Ashland Specialty Ingredients    LTI  Long Term Incentive program  BU  Business Unit(s)    NA  North American Region  DC  Directly Compressible    NPI  New products in the market for <= 5 years, and patented products for life of product  EMEA  Europe and Middle Eastern Areas    OSD  Oral Solid Dosage  EU  European Union    PC  Personal Care division  GBS  Global Business Services    PNS  Pharma and Nutritional Specialties  GM  General Manager(s)    TPRR  Total Preventable Recordable Rate  GP  Gross Profit    US  United States  I&S  Intermediates and Solvents division    VOL  Volume  IS  Industrial Specialties division    VVV  Valvoline  Note: Definitions for Ashland product categories not included: HEC, HPC, HPMC, PVP, PVPP, UPR, VE  
 

 Backup: Pharmachem 
 

 Pharmachem: Financial Impact  Expected to be accretive to EPS in first year following close of transaction and to enhance long-term EPS growthStrong cash flow generation Attractive double-digit returnsExpected to be accretive to EBITDA marginsFinanced primarily with bank financing with remainder from cash on handAverage cost of debt (pre-tax) of approximately 3-4%Incremental ~$20MM of annual interest expenseEstimated pro forma net debt/adjusted EBITDA ratio at closing of 3.8x with strong post-close de-leveraging profileRemain committed to targeting mid to high BB credit ratingsExpected gross debt/adjusted EBITDA below 3.5x1 over time  1. Note: Net debt and Adjusted EBITDA are forward looking non-GAAP financial measures. See slide 2 for an explanation for why reconciliations are not available to the most directly comparable forward looking GAAP financial measure. 
 

 Pharmachem: Synergies  Expected annual cost synergies of ~$10MM, primarily driven by leverage from Ashland’s scale and infrastructure, de-tolling opportunities and in-sourcing initiativesCost synergies expected to be realized by end of second year following transaction closeIncremental tax synergies with expected net present value of ~$110MM driven by integration of Pharmachem into Ashland’s global business structure 
 

 Examples: R&D focus areas 
 

         The challenge:Engineered stone products demand high customization, ample design possibilities & durability for frequent use The solution: Polaris™ resins enable improved quality, process efficiency & durability adapted to multi-designs Superior mechanical performance, wetting & curing behavior of our resins facilitate smooth processing, reduces scrap, & minimizes re-polishingThe result: Unique, innovative resins allowing new design creativity, high gloss & other aesthetic possibilities from ultra white modern surfaces to comparable exotic granites & marble Durable for daily use   Back  Polaris™ resins provide quality, efficiency, and durability in engineered stone 
 

         The offering:Offers “cleaner” encapsulation technology versus competitive technology with improved stability, long term aesthetic and performance compared to benchmarkCustomized capsules in size, color and ingredients with:Exciting visual impactDynamic color releaseUnique delivery methodStability of incompatible ingredientsTexture and sensory signalsControlled fragrance deliveryLow toxicology profile and biodegradable  Back  Captivates™ Encapsulation 
 

         The challenge:Market needed a new hair strengthening ingredientThe solution: FiberHanceTM BM Solution “brings damaged hair back to virgin – from inside” with:Hair mechanical strengtheningLower water uptakeProvide limited damage during hair chemical treatmentsThe result: Initial launch of technology in April, 2017, was 1 year faster than standard R&D timelines due to customer collaboration and intimacyGreen manufacturing process (no organic solvent, 100% yield reaction)  Back  FiberHanceTM BM solution supports customers to improve sustainability footprint 
 

         The challenge:PolyAPTAC technology was suitable for industrial applications; Ashland wanted to extend the ability to use this technology into Personal CareThe solution: Developed an innovative way to purify the industrial polyAPTAC grade, lowering the level of monomers and making it suitable for Personal Care applications on a global base, including ChinaThe result: A marketable product that provides:Long lasting hair damage repair and restores hair to its original hydrophobic state, with enhanced smoothness and shineImproved conditioning, durability and substantive conditioning polymer for hairReduced or eliminated need for silicone, ideal for silicone-free shampoos and conditionersCompatible with wide range of cationic, nonionic and anionic surfactants.  Back  Re-engineering polyAPTAC manufacturing process to expand end market use 
 

 Examples: Innovation that delivers on our brand promise 
 

         The challenge:Formulating a once-daily, oral cholesterol medicationThe solution: KlucelTM 's non-ionic and pH insensitive properties ensures controlled deliveryOur R&D team’s customized solution ensured safe, effective performance with the customer’s formulationThe result: A reliable, safe, and trusted treatment for high cholesterol leading to a market leading blockbuster, with cumulative sales >$130B        Back  Atorvastatin achieves stable active ingredient delivery with KlucelTM 
 

     The challenge:Sunscreen application is messy and ‘sticky’ which negatively impacts consumer complianceCoppertone wanted to revolutionize sunscreen with a formulation that was: A unique rich and creamy foamThat goes on easily and absorbs quickly Helps leave skin feeling soft & smoothThe solution: Our innovative solution combines Prolipid™ lamellar gel, designed to exert a ‘second skin’ effect and reinforce the skin’s natural barrier function. The combination of the Prolipid™ and Ganex ™ creates the texture – a creamy foam that applies easily and absorbs quickly.The result: A revolutionary new aesthetically pleasing texture available in SPF 30 and SPF 50  Back      Bayer achieves revolutionary texture with ProLipid™ lamellar gel and Ganex™ polymer 
 

         The challenge:Estée Lauder was looking to build on a successful line of prestigious skin repair and moisturizing productsThe solution: In collaboration with Estée Lauder we discovered TuberluxTM, an unseen cellular energizing biofunctional extract derived from the rare and precious "black diamond truffle"The result: We helped Estée Lauder create a unique solution that makes skin look vividly renewed as next-generation sculpting technologies power a profoundly younger look  Back  Tuberlux™ black diamond truffle extract helps energize skin cells 
 

         The challenge:Avery needed re-sealable industrial packaging to meet growing demand for greater customer convenience and waste minimizationThe solution: Our Aroset 2570 PSA has removable and re-sealable characteristicsThe result: Aroset 2570 was selected for re-sealable packaging because of its resistance to water, alcohol, & chemical resistance A re-sealable tape for applications including baby wipes and other towelette packaging  Back  Aroset™ PSA provides convenience and minimizes waste 
 

         The challenge:Gas cylinder manufacturers were looking to replace metal with a lighter, safer and more cost effective materialThe solution: We worked closely with Thanh Tai Composite Plastic (in Vietnam) to design a cylinder with outstanding corrosion resistance, toughness, and fire retardanceDerakane™ epoxy vinyl ester resin captured all of these needs and enabled better productivity, operability and a longer shelf lifeThe result: DerakaneTM gas cylinders are lighter and saferCustomer “failure rate” fell from 10%+ to <2% while driving $10K savings per month  Back  Derakane™ is saving our customers money 
 

 Examples: Better Asset Utilization 
 

   CMC utilization  2017 YTD  2016  2015  2014  +18%  After a fall off in the energy market utilization at the Jiangmen facility fell by 12%  CMC utilization in Jiangmen rebounded in 2017...  Decreased production volume would increase per unit fixed cost burden by ~15% from 2014-16To address the per unit increases, sales, marketing, manufacturing, and supply chain teams identified two new ways to go to marketsGo 'smaller' to address tier 2 nutrition manufacturersAddress the 'lower spec', higher volume applications—paper coatings and miningThe two pronged approach has driven a full recovery in utilization. Driving per unit fixed costs below their 2014 low  ...thanks to targeted sales and marketing efforts to 'fill the plant'  Back  Lower cost-per-unit in Jiangmen 
 

   Back  Freetown plant successfully completed the 2nd commercial batch trial of Flexcryl 1624Once approved, plant will able to supply 400-450MT/month of material to support business growthRepurposed equipment in Freetown will successfully reduce the need for $5MM of CapEx at the Piedmont plant  Freetown plant repurposed to reduce need for CapEx 
 

   Back  Three plant closures since 2011 improving utilization & GP ... but there's more to do  2014  2015  2013  2011  2012      Gross Profit $  Gross Profit %  Sauveterre closure  Kelowana closure  Additional sites across Ashland are being evaluated, representing a further $30MM in savings     Mississauga closure   
 

   Low ROI  High ROI  Less feasible  More feasible                                      We've identified and targeted seven products/operations to bring in-house  Analysis sanitized  We spend ~$38MM per year with 60+ tollers to outsource various operations.As we've focused our operations, we've built new capabilities and achieved critical mass in certain operations.In an effort to save money and increase utilization, we've begun exploring options to bring products and operations in-house.  Back  To optimize utilization, we've identified products to bring in-house 
 

   Back  We had poor profit realization from our Low Molecular Weight (LMW) HPMC product linesIts costly, multi-step manufacturing process required 2-3X equipment time, compared to other product lines produced In 2015, we made the decision to stop LMW production; shifting & rationalizing the mix to higher profit realization linesThe benefit: with facility upgrades we reduced the number of products produced, increased total output volume by 6% and increased EBITDA by 50%    Shifting the mix at Doel 
 

   Back  2013  2012  2014  +30%  2015  2016  De-bottlenecking activities at Parlin increased capacity by 30%  The challenge: From 2012 to 2015, increasing global HEC demand caused Ashland to explore opportunities for additional manufacturing capacityMitigation activities: The Parlin plant made incremental Capex investments to debottleneck several process steps and improve operating efficiencyThe result: Plant increased capacity by ~30% which added ~3,000 MT of Natrosol capacity to Ashland’s network. The increased production volume improved cost absorption, lowering HEC unit costs at Parlin  Plant production volume  De-bottlenecking at Parlin plant has reduced need for HEC expansion projects