Ashland Global Holdings Inc.
ASHLAND GLOBAL HOLDINGS INC (Form: 8-K, Received: 11/06/2017 17:23:01)

 

 
 
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):  November 6, 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 2.02 .   Results of Operations and Financial Condition

On November 6, 2017, Ashland Global Holdings Inc. (“Ashland”) announced preliminary fourth quarter results, which are discussed in more detail in the news release (the “News Release”) attached to this Current Report on Form 8-K (“Form 8-K”) as Exhibit 99.1, which is incorporated herein by reference into this Item 2.02.

Item 7.01.    Regulation FD Disclosure

On November 6, 2017, Ashland will make available the News Release and a slide presentation on the “Investor Center” section of Ashland’s website located at http://investor.ashland.com.  A copy of the slide presentation is attached to this Form 8-K as Exhibit 99.2, and is incorporated herein by reference solely for purposes of this Item 7.01 disclosure.

Item 9.01 .   Financial Statements and Exhibits
 
 
 (d)
 
Exhibits
 
 
     
    In connection with the disclosures set forth in Items 2.02 and 7.01, the information in this Form 8-K, including the exhibits 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 exhibits, 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)
 
 
 
 
November 6, 2017
 /s/ J. Kevin Willis
 
J. Kevin Willis
 
Senior Vice President and
Chief Financial Officer
 
3
Exhibit 99.1
  News Release

 
Ashland reports preliminary financial results for fourth quarter of fiscal 2017
Company drives strong sales and earnings growth, provides fiscal 2018 financial outlook

COVINGTON, KY, November 6, 2017 – Ashland Global Holdings Inc. (NYSE: ASH), a premier global specialty chemicals company serving customers in a wide range of consumer and industrial markets, today announced preliminary (1) financial results for the fourth quarter of fiscal 2017:

Sales grew 17 percent year-over-year to $880 million.
Reported net loss was $58 million, while loss from continuing operations was $53 million, or $0.84 per diluted share;
On an adjusted basis, income from continuing operations was $50 million, or $0.78 per diluted share.
Adjusted EBITDA was $161 million. 

“In the fourth quarter, the Ashland team delivered year-over-year sales gains and strong earnings growth across all three segments,” said William A. Wulfsohn, Ashland chairman and chief executive officer.

“Within Specialty Ingredients, Pharmachem contributed strong results. Additionally, excluding Pharmachem, adjusted EBITDA growth was driven by five percent gross profit improvement in the business through focused execution on our asset utilization effort. Within Composites, the team did a great job of generating sales and earnings growth by driving higher volume across all regions and taking action to raise prices in the face of higher raw-material costs. Within Intermediates and Solvents, the team delivered significant increases in adjusted EBITDA and EBITDA margin through pricing discipline amid healthy global demand.”

Reportable Segment Performance and Outlook
To aid in the understanding of Ashland’s ongoing business performance, the results of Ashland’s reportable segments are described below on an adjusted basis and EBITDA, or adjusted EBITDA, is reconciled to operating income in Table 7 of this news release.  In addition, free cash flow is reconciled in Table 6 and adjusted earnings per share is reconciled in Table 8 of this news release. (For a more detailed review of the segment results, please refer to the Investor Relations section of ashland.com to review the slides filed with the Securities and Exchange Commission in conjunction with this earnings release.) In addition, although Ashland provides forward-looking guidance for adjusted EBITDA, free cash flow and adjusted earnings per share, 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 that affect these metrics such as domestic and international economic, political, legislative, regulatory and legal actions. In addition, certain economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, government fiscal policies and changes in the prices of certain key raw materials, can have a significant effect on operations and are difficult to predict with certainty.

Specialty Ingredients
·
Sales increased 12 percent, to $598 million, driven primarily by the contribution from Pharmachem and sales growth in personal care and pharmaceutical end markets. Adhesives and coatings sales were flat as the team worked to drive pricing.
·
Better asset utilization and reduced plant spend drove a 150-basis-point improvement in gross profit.
·
Selling, General and Administrative (SG&A) costs rose, driven primarily by the Pharmachem acquisition.
·
Adjusted EBITDA grew 12 percent, driven by both Pharmachem and growth in the balance of the base business.

Composites
·
Sales climbed 35 percent, to $219 million, as the team generated strong organic growth from continued pricing discipline through an ongoing focus on commercial excellence and value selling, as well as gains in all key end markets and regions.
·
Adjusted EBITDA grew 64 percent and adjusted EBITDA margin climbed 190 basis points.

Intermediates & Solvents
·
Sales increased 5 percent, to $63 million, driven by strong pricing and continued healthy market demand.
·
Adjusted EBITDA grew from $3 million to $10 million.

Balance Sheet and Cash Flow
Total debt was $2.8 billion.
Net debt was $2.3 billion.
During the quarter, cash provided by operating activities totaled $140 million and free cash flow was $67 million.
 

 

Outlook
The company also issued its financial outlook for fiscal 2018 as shown in the table below. 
 
   
FY2018 Outlook
 
Adjusted EBITDA      
-   Specialty Ingredients  
$560 - $590 million 
 
-   Composites
 
$85 - $95 million 
 
-   Intermediates & Solvents
 
$40 - $50 million 
 
-   Unallocated and other  
($35 - $45 million)
 
     
Key Operating Metrics
     
-   Free cash flow
 
>$220 million
 
-   Adjusted earnings per share (EPS)
 
$3.20 - $3.40*
 
       
Corporate Items
     
-   Depreciation & amortization
 
~$290 million
 
-   Interest expense
 
$125 - $135 million
 
-   Effective tax rate
 
8 - 13%
 
-   Capital expenditures
 
$195 - $205 million
 
-   Diluted share count
 
~64 million
 
*For fiscal 2017, loss from continuing operations per diluted share was $1.69 and adjusted earnings from continuing operations per diluted share was $2.44.

For the first quarter of fiscal 2018, Ashland expects adjusted earnings in the range of $0.35-$0.45 per diluted share, compared to $0.14 in the prior-year period. This estimate assumes an effective tax rate of 10 percent.

“At Ashland’s investor day in May, we outlined seven core levers to drive sales and earnings growth in fiscal 2018 and beyond. These levers include specific actions to sustain and grow Ashland’s premium mix, such as through new market strategies and successful product introductions. The levers also include new initiatives to improve our competitiveness, such as through better asset utilization, price-to-value initiatives and cost management,” Wulfsohn said.

“We are beginning to see the positive impact from these actions. Our sharpened focus on asset utilization is generating good improvement in gross profit. The addition of Pharmachem has contributed strong results while opening new opportunities in nutraceutical, food and fragrance markets. We recently added production capacity in pharma and expect to return to historical growth rates going forward. We expect adhesives and coatings to return to growth in the first half of fiscal 2018, and we are seeing early indications of that in our October results. We have introduced 23 new products over the past year, including a premium hair care product that won best functional ingredient at a major cosmetics trade show in London. We also filed 22 patent applications over the same period as part of our ongoing investment in innovation. Our manufacturing teams are driving better asset utilization through reduced plant spend and increased plant absorption. At the same time, our sales teams have been focused on better articulating the value we provide for our customers and then capturing that value in price.

“In summary, Ashland has a clear strategy to drive strong sales and earnings growth. The aggressive, concrete actions we have taken to improve our business are building good momentum as we enter fiscal 2018, as reflected in our forecast for 30 to 40 percent growth in adjusted earnings per share for the full year,” Wulfsohn said.  

For additional information on Ashland’s fourth-quarter financial results, please see the slide presentation accompanying this news release. 

Conference Call Webcast
Ashland will host a live webcast of its fourth-quarter conference call with securities analysts at 9 a.m. EST Tuesday, November 7, 2017. The webcast will be accessible through Ashland’s website at http://investor.ashland.com . Following the live event, an archived version of the webcast and supporting materials will be available for 12 months.

Use of Non-GAAP Measures
Ashland believes that by removing the impact of depreciation and amortization and excluding certain non-cash charges, amounts spent on interest and taxes and certain other charges that are highly variable from year to year, EBITDA and Adjusted EBITDA provide Ashland’s investors with performance measures that reflect the impact to operations from trends in changes in sales, margin and operating expenses, providing a perspective not immediately apparent from net income and operating income. The adjustments Ashland makes to derive the non-GAAP measures of EBITDA and Adjusted EBITDA exclude items which may cause short-term fluctuations in net income and operating income and which Ashland does not consider to be the fundamental attributes or primary drivers of its business. EBITDA and Adjusted EBITDA provide disclosure on the same basis as that used by Ashland’s management to evaluate financial performance on a consolidated and reportable segment basis and provide consistency in our financial reporting, facilitate internal and external comparisons of Ashland’s historical operating performance and its business units and provide continuity to investors for comparability purposes.

The free cash flow metric enables Ashland to provide a better indication of the ongoing cash being generated that is ultimately available for both debt and equity holders as well as other investment opportunities. Unlike cash flow provided by operating activities, free cash flow includes the impact of capital expenditures from continuing operations, providing a more complete picture of cash generation. Free cash flow has certain limitations, including that it does not reflect adjustment for certain non-discretionary cash flows such as mandatory debt repayments. The amount of mandatory versus discretionary expenditures can vary significantly between periods.

Adjusted earnings per share is a performance measure used by Ashland and is defined by Ashland as earnings (loss) from continuing operations, adjusted for identified key items and divided by the number of outstanding diluted shares of common stock.  Ashland believes this measure provides investors additional insights into operational performance by providing the earnings per share metric that excludes the effect of the identified key items.

About Ashland  
Ashland Global Holdings Inc. (NYSE: ASH) is a premier global specialty chemicals company serving customers in a wide range of consumer and industrial markets, including adhesives, architectural coatings, automotive, construction, energy, food and beverage, personal care and pharmaceutical. At Ashland, we are nearly 7,000 passionate, tenacious solvers – from renowned scientists and research chemists to talented engineers and plant operators – who thrive on developing practical, innovative and elegant solutions to complex problems for customers in more than 100 countries. Visit  ashland.com  to learn more. 

C-ASH



Forward-Looking Statements
This news release 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 and financial condition, 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: the impact of acquisitions and/or divestitures Ashland has made or may make, including the acquisition of Pharmachem (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); the potential that Ashland does not realize all of the expected benefits of the separation of its Valvoline business; and severe weather, natural disasters, cyber events and legal proceedings and claims (including product recalls, 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 news release 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 news release.

(1) Preliminary Results
Financial results are preliminary until Ashland’s Form 10-K is filed with the SEC.

™ Trademark, Ashland or its subsidiaries, registered in various countries.

FOR FURTHER INFORMATION:

Investor Relations:
Seth A. Mrozek
+1 (859) 815-3527
samrozek@ashland.com  

Media Relations: 
Gary Rhodes 
+1 (859) 815-3047
glrhodes@ashland.com  



 

Ashland Global Holdings Inc. and Consolidated Subsidiaries
                   
Table 1
 
STATEMENTS OF CONSOLIDATED INCOME
                       
(In millions except per share data - preliminary and unaudited)
                       
                         
   
Three months ended
   
Year ended
 
   
September 30
   
September 30
 
   
2017
   
2016
   
2017
   
2016
 
                         
Sales
 
$
880
   
$
754
   
$
3,260
   
$
3,019
 
Cost of sales
   
646
     
572
     
2,372
     
2,153
 
GROSS PROFIT
   
234
     
182
     
888
     
866
 
Selling, general and administrative expense
   
177
     
433
     
670
     
914
 
Research and development expense
   
22
     
22
     
83
     
87
 
Equity and other income (loss)
   
(1
)
   
1
     
7
     
8
 
OPERATING INCOME (LOSS)
   
34
     
(272
)
   
142
     
(127
)
Net interest and other financing expense
   
31
     
46
     
234
     
173
 
Net loss on acquisitions and divestitures
   
-
     
(12
)
   
(6
)
   
(8
)
INCOME (LOSS) FROM CONTINUING OPERATIONS
                               
BEFORE INCOME TAXES
   
3
     
(330
)
   
(98
)
   
(308
)
Income tax expense (benefit)
   
56
     
14
     
7
     
(25
)
LOSS FROM CONTINUING OPERATIONS
   
(53
)
   
(344
)
   
(105
)
   
(283
)
Income (loss) from discontinued operations (net of taxes)
   
(5
)
   
69
     
133
     
255
 
NET INCOME (LOSS)
   
(58
)
   
(275
)
   
28
     
(28
)
Net income attributable to noncontrolling interest
   
-
     
1
     
27
     
1
 
NET INCOME (LOSS) ATTRIBUTABLE TO ASHLAND
 
$
(58
)
 
$
(276
)
 
$
1
   
$
(29
)
                                 
DILUTED EARNINGS PER SHARE
                               
Loss from continuing operations
 
$
(0.84
)
 
$
(5.56
)
 
$
(1.69
)
 
$
(4.51
)
Income (loss) from discontinued operations attributable to Ashland
   
(0.08
)
   
1.10
     
1.70
     
4.04
 
Net income (loss) attributable to Ashland
 
$
(0.92
)
 
$
(4.46
)
 
$
0.01
   
$
(0.47
)
                                 
                                 
AVERAGE DILUTED COMMON SHARES OUTSTANDING (a)
   
63
     
62
     
62
     
63
 
                                 
SALES
                               
Specialty Ingredients
 
$
598
   
$
532
   
$
2,216
   
$
2,089
 
Composites
   
219
     
162
     
779
     
669
 
Intermediates and Solvents
   
63
     
60
     
265
     
261
 
   
$
880
   
$
754
   
$
3,260
   
$
3,019
 
                                 
OPERATING INCOME (LOSS)
                               
Specialty Ingredients
 
$
61
   
$
67
   
$
233
   
$
237
 
Composites
   
17
     
9
     
67
     
63
 
Intermediates and Solvents
   
(4
)
   
(186
)
   
(12
)
   
(181
)
Unallocated and other
   
(40
)
   
(162
)
   
(146
)
   
(246
)
   
$
34
   
$
(272
)
 
$
142
   
$
(127
)
 
(a)
As a result of the loss from continuing operations, the effect of the share-based awards convertible to common shares would be anti-dilutive. In accordance with U.S. GAAP, they have been excluded from the diluted earnings per share calculation.
 
 

 
Ashland Global Holdings Inc. and Consolidated Subsidiaries
       
Table 2
 
CONDENSED CONSOLIDATED BALANCE SHEETS
           
(In millions - preliminary and unaudited)
           
             
   
September 30
   
September 30
 
   
2017
   
2016
 
ASSETS
           
Current assets
           
Cash and cash equivalents
 
$
566
   
$
1,017
 
Accounts receivable
   
612
     
529
 
Inventories
   
634
     
539
 
Other assets
   
91
     
89
 
Current assets of discontinued operations
   
-
     
714
 
Total current assets
   
1,903
     
2,888
 
                 
Noncurrent assets
               
Property, plant and equipment
               
 Cost
   
3,762
     
3,615
 
Accumulated depreciation
   
1,792
     
1,715
 
Net property, plant and equipment
   
1,970
     
1,900
 
                 
Goodwill
   
2,465
     
2,138
 
Intangibles
   
1,319
     
1,061
 
Restricted investments
   
302
     
292
 
Asbestos insurance receivable
   
209
     
196
 
Deferred income taxes
   
28
     
35
 
Other assets
   
422
     
437
 
Noncurrent assets of discontinued operations
   
-
     
1,053
 
Total noncurrent assets
   
6,715
     
7,112
 
                 
Total assets
 
$
8,618
   
$
10,000
 
                 
LIABILITIES AND EQUITY
               
Current liabilities
               
Short-term debt
 
$
235
   
$
170
 
Trade and other payables
   
409
     
376
 
Accrued expenses and other liabilities
   
324
     
313
 
Current liabilities of discontinued operations
   
-
     
379
 
Total current liabilities
   
968
     
1,238
 
                 
Noncurrent liabilities
               
Long-term debt
   
2,584
     
2,325
 
Employee benefit obligations
   
191
     
195
 
Asbestos litigation reserve
   
694
     
686
 
Deferred income taxes
   
375
     
315
 
Other liabilities
   
400
     
361
 
Noncurrent liabilities of discontinued operations
   
-
     
1,715
 
Total noncurrent liabilities
   
4,244
     
5,597
 
                 
Equity
               
Stockholders' equity
   
3,406
     
3,347
 
Noncontrolling interest
   
-
     
(182
)
Total equity
   
3,406
     
3,165
 
                 
Total liabilities and equity
 
$
8,618
   
$
10,000
 


Ashland Global Holdings Inc. and Consolidated Subsidiaries
                   
Table 3
 
STATEMENTS OF CONSOLIDATED CASH FLOWS
                       
(In millions - preliminary and unaudited)
                       
       
Three months ended
   
Year ended
 
       
September 30
   
September 30
 
     
2017
   
2016
   
2017
   
2016
 
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES
                       
  FROM CONTINUING OPERATIONS
                       
Net income (loss)
 
$
(58
)
 
$
(275
)
 
$
28
   
$
(28
)
Loss (income) from discontinued operations (net of taxes)
   
5
     
(69
)
   
(133
)
   
(255
)
Adjustments to reconcile income from continuing operations to
                               
  cash flows from operating activities
                               
Depreciation and amortization
   
83
     
75
     
301
     
302
 
Original issue discount and debt issuance cost amortization
   
2
     
9
     
109
     
18
 
Deferred income taxes
   
(25
)
   
(30
)
   
(30
)
   
(29
)
Equity income from affiliates
   
-
     
-
     
-
     
(1
)
Distributions from equity affiliates
   
-
     
2
     
1
     
2
 
Stock based compensation expense
   
6
     
7
     
20
     
30
 
Loss on early retirement of debt
   
-
     
-
     
9
     
-
 
Gain on available-for-sale securities
   
(2
)
   
(2
)
   
(11
)
   
(8
)
Net loss on acquisitions and divestitures
   
-
     
12
     
4
     
8
 
Impairments
   
-
     
181
     
-
     
181
 
Pension contributions
   
(1
)
   
(9
)
   
(7
)
   
(33
)
Loss on pension and other postretirement plan remeasurements
   
8
     
124
     
6
     
142
 
Change in operating assets and liabilities   (a)
   
122
     
111
     
(42
)
   
43
 
Total cash provided by operating activities from continuing operations
   
140
     
136
     
255
     
372
 
                                   
CASH FLOWS PROVIDED (USED) BY INVESTING ACTIVITIES
                               
  FROM CONTINUING OPERATIONS
                               
Additions to property, plant and equipment
   
(73
)
   
(82
)
   
(199
)
   
(231
)
Proceeds from disposal of property, plant and equipment
   
-
     
-
     
5
     
2
 
Purchase of operations - net of cash acquired
   
-
     
-
     
(680
)
   
-
 
Proceeds from sale of operations or equity investments
   
14
     
1
     
18
     
19
 
Net purchase of funds restricted for specific transactions
   
-
     
-
     
(2
)
   
(4
)
Reimbursements from restricted investments
   
8
     
9
     
27
     
33
 
Proceeds from sales of available-for-sale securities
   
-
     
6
     
19
     
10
 
Purchases of available-for-sale securities
   
-
     
(6
)
   
(19
)
   
(10
)
Proceeds from the settlement of derivative instruments
   
-
     
1
     
5
     
9
 
Payments from the settlement of derivative instruments
   
-
     
(3
)
   
(3
)
   
(5
)
Total cash used by investing activities from continuing operations
   
(51
)
   
(74
)
   
(829
)
   
(177
)
                                   
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES
                               
  FROM CONTINUING OPERATIONS
                               
Proceeds from issuance of long-term debt
   
-
     
-
     
1,100
     
-
 
Repayment of long-term debt
   
(1
)
   
(1,045
)
   
(915
)
   
(1,095
)
Premium on long-term debt repayment
   
-
     
-
     
(17
)
   
-
 
Proceeds (repayment) from short-term debt
   
6
     
(545
)
   
75
     
(156
)
Repurchase of common stock
   
-
     
-
     
-
     
(500
)
Debt issuance costs
   
-
     
-
     
(15
)
   
-
 
Cash dividends paid
   
(14
)
   
(24
)
   
(77
)
   
(97
)
Excess tax benefits related to share-based payments
   
-
     
4
     
3
     
3
 
Total cash provided (used) by financing activities from continuing operations
   
(9
)
   
(1,610
)
   
154
     
(1,845
)
CASH PROVIDED (USED) BY CONTINUING OPERATIONS
   
80
     
(1,548
)
   
(420
)
   
(1,650
)
Cash provided (used) by discontinued operations
                               
Operating cash flows
   
(13
)
   
123
     
110
     
293
 
Investing cash flows
   
3
     
(51
)
   
(290
)
   
(155
)
Financing cash flows
   
-
     
1,451
     
(17
)
   
1,451
 
Effect of currency exchange rate changes on cash and
                               
cash equivalents
   
4
     
(2
)
   
(5
)
   
(8
)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
   
74
     
(27
)
   
(622
)
   
(69
)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD
   
492
     
1,215
     
1,017
     
1,257
 
Cash transferred to Valvoline
   
-
     
(171
)
   
171
     
(171
)
CASH AND CASH EQUIVALENTS - END OF PERIOD
 
$
566
   
$
1,017
   
$
566
   
$
1,017
 
                                   
DEPRECIATION AND AMORTIZATION
                               
Specialty Ingredients
 
$
66
   
$
59
   
$
243
   
$
243
 
Composites
   
6
     
5
     
22
     
22
 
Intermediates and Solvents
   
7
     
8
     
31
     
31
 
Unallocated and other
   
4
     
3
     
5
     
6
 
       
$
83
   
$
75
   
$
301
   
$
302
 
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
                               
Specialty Ingredients
 
$
53
   
$
58
   
$
148
   
$
179
 
Composites
   
9
     
14
     
26
     
23
 
Intermediates and Solvents
   
3
     
4
     
10
     
13
 
Unallocated and other
   
8
     
6
     
15
     
16
 
       
$
73
   
$
82
   
$
199
   
$
231
 
 
(a)
Excludes changes resulting from operations acquired or sold.
                               


Ashland Global Holdings Inc. and Consolidated Subsidiaries
                   
Table 4
 
INFORMATION BY INDUSTRY SEGMENT
                       
(In millions - preliminary and unaudited)
                       
                         
   
Three months ended
   
Year ended
 
   
September 30
   
September 30
 
   
2017
   
2016
   
2017
   
2016
 
SPECIALTY INGREDIENTS
                       
Sales per shipping day
 
$
9.5
   
$
8.3
   
$
8.8
   
$
8.2
 
Metric tons sold (thousands)
   
80.5
     
79.6
     
317.2
     
307.4
 
Gross profit as a percent of sales (a)
   
33.5
%
   
34.6
%
   
32.7
%
   
33.9
%
COMPOSITES
                               
Sales per shipping day
 
$
3.5
   
$
2.5
   
$
3.1
   
$
2.6
 
Metric tons sold (thousands)
   
94.8
     
75.2
     
346.4
     
309.1
 
Gross profit as a percent of sales (a)
   
18.8
%
   
19.6
%
   
19.8
%
   
22.6
%
INTERMEDIATES AND SOLVENTS
                               
Sales per shipping day
 
$
1.0
   
$
0.9
   
$
1.1
   
$
1.0
 
Metric tons sold (thousands)
   
27.2
     
33.5
     
137.0
     
136.7
 
Gross profit as a percent of sales (a)
   
5.5
%
   
3.4
%
   
6.5
%
   
11.0
%
 
(a)
Gross profit as a percent of sales is defined as sales, less cost of sales divided by sales.
 
 
 

 
Ashland Global Holdings Inc. and Consolidated Subsidiaries  
               
Table 5
 
RECONCILIATION OF NON-GAAP DATA - INCOME (LOSS) FROM CONTINUING OPERATIONS  
       
(In millions - preliminary and unaudited)
                   
                     
    Three Months Ended September 30, 2017  
    Specialty          Intermediates     Unallocated      
    Ingredients     Composites     and Solvents     & Other     Total
OPERATING INCOME (LOSS)
                 
Separation and restructuring costs
 
$
(5
)  
$
-
 
 
$
-
   
$
(18
)  
$
(23
)
Losses on pension and other postretirement plan remeasurements    -       -       -       (8      (8
Unplanned plant shutdowns     (6     -        (7      -        (13
Inventory far value adjustment     (6     -       -        -        (6
All other operating income (loss)
   
78
     
17
     
3
     
(14
   
84
 
Operating income (loss)
 
61
     
17
 
   
(4
   
(40
)
   
34
 
                                         
NET INTEREST AND OTHER FINANCING EXPENSE   
                      31       31  
                                         
INCOME TAX EXPENSE (BENEFIT)
                                       
Key items
                         
(18
)
   
(18
)
Discrete items                              71     71  
All other income tax expense
                           
3
     
3
 
                             
56
     
56
 
INCOME (LOSS) FROM CONTINUING OPERATIONS
 
$
61
   
$
17
 
 
$
(4
)  
$
(127
)
 
$
(53
)
                                         
                                         
             Three Months Ended September 30, 2016 
     Specialty         Intermediates     Unallocated           
     Ingredients    Composites and Solvents  & Other     Total   
OPERATING INCOME (LOSS)
                                       
Impairment of Intermediates and Solvents   $ -       -       (181 )     -       (181 )
Losses on pension and other postretirement plan remeasurements
-
     
-
     
-
     
(124
)
   
(124
)
Separation costs     -       -       -        (36 )      (36 )
All other operating income (loss)
   
67
     
9
   
(5
)    
(2
)    
69
 
Operating income (loss)
   
67
     
9
     
(186
)    
(162
)
   
(272
)
                                         
NET INTEREST AND OTHER FINANCING EXPENSE
                           
 
     
 
 
Accelerated amortization of debt issuance costs                             6       6  
All other interest and other financing expense                             40       40  
                                         
NET LOSS ON DIVESTITURES
                           
(12
)    
(12
)
                                         
INCOME TAX EXPENSE (BENEFIT)
                                       
Key items
                           
(68
)
   
(68
)
Discrete items                             83       83  
All other income tax benefit
                           
(1
)    
(1
)
                             
14
 
   
14
 
INCOME (LOSS) FROM CONTINUING OPERATIONS
 
$
67
   
$
9
   
$
(186
)  
$
(234
)
 
$
(344
)
 
 

 
 
Ashland Global Holdings Inc. and Consolidated Subsidiaries
                   
Table 6
 
RECONCILIATION OF NON-GAAP DATA - FREE CASH FLOW
                       
(In millions - preliminary and unaudited)
                       
                         
 
Three months ended
 
Year ended
 
 
September 30 
    September 30        
Free cash flow (a)
2017
       2016  
 
   2017      2016  
Total cash flows provided by operating activities
                       
from continuing operations
 
$
140
   
$
136
   
$
255
   
$
372
 
Adjustments:
                               
Additions to property, plant and equipment
   
(73
)
   
(82
)
   
(199
)
   
(231
)
Free cash flows
 
$
67
   
$
54
   
$
56
   
$
141
 
 
(a)
Free cash flow is defined as cash flows provided by operating activities less additions to property, plant and equipment and other items Ashland has deemed non operational (if applicable).
 

 
 

 
Ashland Global Holdings Inc. and Consolidated Subsidiaries
       
Table 7
 
RECONCILIATION OF NON-GAAP DATA - ADJUSTED EBITDA
           
(In millions - preliminary and unaudited)
           
             
   
Three months ended
 
   
September 30
 
Adjusted EBITDA - Ashland Global Holdings Inc.
 
2017
   
2016
 
Net loss
 
$
(58
)
 
$
(275
)
Income tax expense
   
56
     
14
 
Net interest and other financing expense
   
31
     
46
 
Depreciation and amortization (a)
   
77
     
74
 
EBITDA
   
106
     
(141
)
Loss (income) from discontinued operations (net of taxes)
   
5
     
(69
)
Net loss on acquisitons and divestitures
   
-
     
12
 
Operating key items (see Table 5)
   
50
     
341
 
Adjusted EBITDA
 
$
161
   
$
143
 
                 
                 
Adjusted EBITDA - Specialty Ingredients
               
Operating income
 
$
61
   
$
67
 
Add:
               
Depreciation and amortization (a)
   
63
     
59
 
Key items (see Table 5)
   
17
     
-
 
Adjusted EBITDA
 
$
141
   
$
126
 
                 
                 
Adjusted EBITDA - Composites
               
Operating income
 
$
17
   
$
9
 
Add:
               
Depreciation and amortization
   
6
     
5
 
Key items (see Table 5)
   
-
     
-
 
Adjusted EBITDA
 
$
23
   
$
14
 
                 
                 
Adjusted EBITDA - Intermediates and Solvents
               
Operating loss
 
$
(4
)
 
$
(186
)
Add:
               
Depreciation and amortization
   
7
     
8
 
Key items (see Table 5)
   
7
     
181
 
Adjusted EBITDA
 
$
10
   
$
3
 
 
(a)
Depreciation and amortization excludes accelerated depreciation of $3 million for Specialty Ingredients for the three months ended September 30, 2017, and $3 million and $1 million for Unallocated and other for the three months ended September 30, 2017 and 2016, respectively, which are included as key items within this table.
 
 
 

 
Ashland Global Holdings Inc. and Consolidated Subsidiaries
                   
Table 8
 
RECONCILIATION OF OTHER NON-GAAP DATA
                       
(Preliminary and unaudited)
                       
       
Three months ended
   
Year ended
 
       
September 30
   
September 30
 
     
2017
   
2016
   
2017
   
2016
 
EPS from continuing operations (as reported)
 
$
(0.84
)  
$
(5.56 )   $ (1.69 )   $ (4.51 )
Adjustments:
 
 
 
 
 
 
 
 
   
 
 
 
Separation, restructuring and other costs, net
   
0.16
     
0.42
 
   
1.19
 
   
1.09
 
Unplanned plant shutdowns
    0.18       -       0.18       -  
Environmental reserve adjustments
    -        -      0.09        0.15  
Inventory fair value adjustment
    0.06        -        0.07        -  
Losses on pension and other postretirement plan remeasurements  
0.09       1.23       0.07       1.33  
Net loss on acquisitions and divestitures
    -       0.19       0.06        0.19  
Legal reserve
     -       -       0.04        0.15  
Impairment
    -        2.80      -        2.75  
Legacy benefit for former Directors
    -        -       -        (0.11 )
Customer claim adjustment
     -        -        -        (0.08 )
Debt refinancing costs
    -       0.06       1.10       0.06  
Tax discrete items     1.13       1.34       1.33       1.23  
Total adjustments
     1.62        6.04       4.13       6.76  
Adjusted EPS from continuing operations (non-GAAP)
  $  0.78     $  0.48     $ 2.44     $  2.25  
 
       
Three months ended
   
Year ended
 
       
September 30
   
September 30
 
     
2017
   
2016
   
2017
   
2016
 
Operating income (loss)
 
$
34
 
$
(272 )   $ 142   $ (127 )
Key items
  50
 
 
341
 
 
 
147
   
 
426
 
Adjusted operating income
  $
84
    $
69
 
  $
289
 
  $
299
 

 
       
Three months ended
   
Year ended
 
       
September 30
   
September 30
 
     
2017
   
2016
   
2017
   
2016
 
Loss from continuing operations
 
$
(53
)  
$
(344 )   $ (105 )   $ (283 )
Key items
  103
 
 
374
 
 
 
259
   
 
426
 
Adjusted income from continuing operations
  $
50
    $
30
 
  $
154
 
  $
143
 
 Fourth-Quarter Fiscal 2017 Earnings  November 6, 2017  / efficacy usability allure integrity profitability 
 

 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. 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, 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: the impact of acquisitions and/or divestitures Ashland has made or may make, including the acquisition of Pharmachem (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); the potential that Ashland does not realize all of the expected benefits of the separation of its Valvoline business; and severe weather, natural disasters, cyber events and legal proceedings and claims (including product recalls, 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, adjusted EPS and free cash flow, 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.  2 
 

 Fourth Quarter Summary 
 

       Ashland Global Holdings Inc.Adjusted Results Summary1  4  HighlightsSales up 17%; acquisitions and currency contributing 10 percentage points and 1 percentage point, respectivelyReported net loss of $58 million; loss from continuing operations of $53 million or $0.84 per diluted shareEBITDA up 13% to $161 millionAdjusted EPS equaled $0.78Excl. intangible amortization, adjusted EPS would have been $1.04Key DriversAll three reportable segments show organic year-over-year (YOY) improvementsAcquisitions make strong contributionsTax rate lower than expected due to income mix  Ashland‘s earnings release dated November 6, 2017, available on Ashland's website at http://investor.ashland.com, reconciles adjusted amounts to amounts reported under GAAP. 
 

   Specialty IngredientsAdjusted Results Summary1  HighlightsSales up 12%Gross profit margin up 150 bpsEBITDA up 12%Key DriversStrong Pharmachem contribution; increased EBITDA from the business excluding acquisition impactGross profit improvement driven by gains in Personal Care, Pharma and better asset utilization, more than offset greater-than-anticipated raw material inflationAdditional pricing actions introduced during the quarterSG&A increase driven primarily by acquisition and currency      Ashland‘s earnings release dated November 6, 2017, available on Ashland's website at http://investor.ashland.com, reconciles adjusted amounts to amounts reported under GAAP.  5 
 

     Specialty IngredientsSales Trends by End Market  6  End Market CommentaryNew products helped drive positive Personal Care growthImproved asset utilization enabled cellulosic excipient growth in PharmaPharmachem was a strong contributor, consistent with expectationsCoatings and Adhesives sales flat as the team worked to drive pricingTargeted sales in support of asset utilization in improving Construction and Energy end marketsCurrency2 contributed 1 percentage point to sales growth  Performance SpecialtiesAverage USD / EUR of $1.17 in current quarter compared to $1.12 in prior-year period. 
 

   CompositesAdjusted Results Summary1  Ashland‘s earnings release dated November 6, 2017, available on Ashland's website at http://investor.ashland.com, reconciles adjusted amounts to amounts reported under GAAP.  7  HighlightsSales up 35%EBITDA up 64%EBITDA margin up 190 bpsKey DriversStrong growth driven by gains in all key end markets and regionsContinued pricing discipline through focus on commercial excellence and value sellingAcquisition also contributed 10 percentage points to sales growth     
 

   Intermediates & SolventsAdjusted Results Summary1  Ashland‘s earnings release dated November 6, 2017, available on Ashland's website at http://investor.ashland.com, reconciles adjusted amounts to amounts reported under GAAP.  8  HighlightsSales up 5%EBITDA increased to $10 millionEBITDA margin increased to 15.9%Key DriversStrong price escalation during the quarterMarket demand remains healthy     
 

 Fiscal Year Summary 
 

     Ashland Global Holdings Inc.Fiscal Year 2017 Summary1  Ashland‘s earnings release dated November 6, 2017, available on Ashland's website at http://investor.ashland.com, reconciles free cash flow to amounts reported under GAAP. See Appendix D for a reconciliation of adjusted EBITDA. Definition of free cash flow: operating cash flow less capital expenditures and other items Ashland has deemed non-operational (if applicable).  10  Full Year HighlightsSales up 8% to $3.3 billionSales growth in all three segmentsResults include the impact of ~$85 million of YOY raw material cost increases and unfavorable FXCompleted final Valvoline (VVV) separationAcquired Pharmachem and a composites facility in Etain, FranceOperating cash flow of $255 millionCapital expenditures of $199 millionFree cash flow2 (FCF) of $56 million, inclusive of ~$80 million of one-time separation-related paymentsBoard reauthorized remaining $500 million on the $1 billion share repurchase authorization 
 

 Outlook Summary 
 

   Ashland Global Holdings Inc.First-Quarter Fiscal 2018 Outlook  HighlightsExpect Q1 adjusted EPS in the range of $0.35 - $0.45 vs. $0.14 prior yearBased on an effective tax rate of 10 percentKey DriversSpecialty IngredientsContinued contribution from PharmachemExcluding acquisitions, improving YOY sales growthSeasonality consistent with historical patternsContinued gains driven by better asset utilizationCoatings expected to return to growth; positive traction seen in October resultsPrice vs. raw material costs nearing parity in a volatile and inflationary environmentComposites: continued growth and pricing disciplineI&S: continued price recovery in BDO and related derivatives  12 
 

 Ashland Global Holdings Inc.Fiscal Year 2018 Outlook  13  For fiscal 2017, loss from continuing operations per diluted share was $1.69 and adjusted earnings from continuing operations per diluted share was $2.44. Ashland‘s earnings release dated November 6, 2017, available on Ashland's website at http://investor.ashland.com, reconciles adjusted amounts to amounts reported under GAAP.  HighlightsAdjusted EPS outlook in the range of $3.20 - $3.40 representing YOY growth in the range of ~30 - 40%1Growth driven by:$0.50 - $0.70 base earnings growth~$0.12 impact from acquisitions / divestitures made during FY20172~$0.14 favorable FX rates, driven primarily by the Euro3 (assumed $1.17 USD/EUR for full year)Based on an effective tax rate of 10% for the yearCash tax rate in the range of 20 – 25%FCF4 greater than $220 million, consistent with Investor Day expectations      Assumes estimated operating income impact, less interest expense from Pharmachem debt, effective tax rate of 35%, 64 million diluted share outstanding.Estimated currency sensitivity, primarily driven by the Euro, of approximately $1.5 million of annual adjusted EBITDA or YOY Euro cent change.Definition of free cash flow: operating cash flow less capital expenditures and other items Ashland has deemed non-operational (if applicable). 
 

 Appendix A: Bridges 
 

 Specialty IngredientsSales and Adjusted EBITDA Bridges  ($ millions)Preliminary  15  Acquisitions include Pharmachem Laboratories, Inc.  0%  Q4 2016  Volume / Mix  532  598  0%  1%  11%  Sales  Price  FX  Acq/Div/Other1  Q4 2017  2  Q4 2016  Volume/ Mix  126  141  3  (2)  2  10  Adjusted EBITDA  Margin  SG&A  FX  Q4 2017  Acq/Div/Other1 
 

 CompositesSales and Adjusted EBITDA Bridges  ($ millions)Preliminary  16  Acquisitions include the composites facility in Etain, France.  13%  Q4 2016  Volume / Mix  162  219  9%  2%  11%  Sales  Price  FX  Acq/Div/Other1  Q4 2017  5  Q4 2016  Volume/ Mix  14  23  2  (1)  1  2  Adjusted EBITDA  Margin  SG&A  FX  Q4 2017  Acq/Div/Other1 
 

 Intermediates & SolventsSales and Adjusted EBITDA Bridges  ($ millions)Preliminary  17  (6%)  Q4 2016  Volume / Mix  60  63  8%  3%  0%  Sales  Price  FX  Acq/Div/Other  Q4 2017  0  Q4 2016  Volume/ Mix  3  10  8  (1)  0  0  Adjusted EBITDA  Margin  SG&A  FX  Q4 2017  Acq/Div/Other 
 

 Appendix B: Key Items and Balance Sheet 
 

 Fiscal Fourth Quarter – Continuing OperationsKey Items Affecting Income        19 
 

   Liquidity and Net Debt    ($ in millions)      20 
 

 Appendix C: Business Profiles  12 Months Ended September 30, 2017 
 

 Corporate Profile  By business unit  By geography  1 For 12 months ended September 30, 2017.2 Ashland includes only U.S. and Canada in its North America designation.  North America240%  Asia Pacific18%  LatinAmerica/Other - 9%  Europe 33%    SpecialtyIngredients68%  Intermediates and Solvents8%  Composites24%  Sales1 - $3.3 Billion  22   
 

 Corporate Profile  For 12 months ended September 30, 2017. See Appendix D for reconciliation to amounts reported under GAAP.  NYSE Ticker Symbol:  ASH  Total Employees:  ~6,500   Outside North America  ~50%  Number of Countries in Which Ashland Has Sales:  More than 100  SpecialtyIngredients81%  Intermediates and Solvents4%  Adjusted EBITDA1 - $570 Million  23   
 

 Specialty Ingredients  Salesby Market2  For 12 Months Ended September 30, 2017Sales: $2.2 billionAdjusted EBITDA: $493 million1Adjusted EBITDA Margin: 22.2%1  Salesby Product  Cellulosics 36%  PVP18%  Adhesives 15%  North America 40%  AsiaPacific 19%  Europe 31%  Latin America/Other – 10%  Actives – 6%  Vinyl Ethers6%  Salesby Geography3  1 See Appendix D for reconciliation to amounts reported under GAAP.2 Within the Sales by Market chart above, Industrial Specialties are presented in green and Consumer Specialties are presented in blue.3 Includes Pharmachem’s sales for the period May 17, 2017 through September 30, 2017, the period for which Pharmachem was owned.  24  A global leader of cellulose ethers, vinyl pyrrolidones and biofunctionals  Pharmachem3 5%  Pharmachem3 5% 
 

 Composites  Salesby Geography  For 12 Months Ended September 30, 2017Sales: $779 millionAdjusted EBITDA: $89 million1Adjusted EBITDA Margin: 11.4%1  Salesby Product  UPR/VER283%  Gel coats and other17%  Construction: Residential19%  Marine 23%  Construction:Industrial39%  Salesby Market  North America47%  Asia Pacific – 15%  Europe30%  Latin America/Other 8%  Transportation 11%  Construction: Infrastructure 8%  1 See Appendix D for reconciliation to amounts reported under GAAP.2 UPR stands for unsaturated polyester resins and VER stands for vinyl ester resins.  25  A global leader in unsaturated polyester resins, vinyl ester resins and gel coats 
 

 Intermediates and Solvents  Salesby Geography  For 12 Months Ended September 30, 2017Sales: $265 millionAdjusted EBITDA: $26 million1Adjusted EBITDA Margin: 9.8%1  Salesby Product  Butanediol39%  Derivatives61%  GeneralIndustrial 28%  Plastics/Polymers31%  Salesby Application  North America 22%  Asia Pacific 18%  Europe 57%  Latin America/Other 3%  1 See Appendix D for reconciliation to amounts reported under GAAP.  26  A global leader in butanediol and related derivatives  Pharma 16%  Agriculture7% 
 

 Appendix D: Non-GAAP Reconciliation1  Although Ashland provides forward looking guidance for adjusted EBITDA in this presentation, Ashland is not reaffirming or providing forward-looking guidance for U.S. GAAP reported financial measures or a reconciliation of forward-looking non-GAAP financial 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. 
 

 Ashland Global Holdings Inc. and Consolidated SubsidiariesReconciliation of Non-GAAP Data for 12 Months Ended September 30, 2017  North America2__%  Asia Pacific__%  LatinAmerica/Other - _%  Europe __%  AshlandSpecialtyIngredients__%  AshlandPerformanceMaterials__%  Valvoline__%  1 Quarterly totals may not sum to actual results due to quarterly rounding conventions. Calculation of adjusted EBITDA for each quarter has been reconciled within certain financial filings with the SEC and posted on Ashland's website for each reportable segment.   28 
 

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