earnings conference call first quarter fiscal 2025 January 29, 2025 Forward-Looking Statements This presentation contains for ward-looking storements within the meaning of Section 274 of the Securities Ach of 1933, as amended and Section 21E of the Securities Exchang 994, as amended. Ashland has identified some of these forward-looking statements with words such as "anticipates," "expects," estimates," "is likely," "predicts", fprojects, "forecasts," "dajectives," "mory" "will," "will," "will," "plans" and ...

Financial Performance - Sales for the three months ended December 31, 2024, were $405 million, a decrease of 14.4% from $473 million in the same period of 2023[7]. - Gross profit increased to $111 million, up 13.3% from $98 million year-over-year[7]. - Operating loss for the quarter was $179 million, compared to an operating loss of $18 million in the prior year[7]. - Net income loss was $165 million, a significant decline from a net income of $26 million in the same quarter of 2023[7]. - Basic earnings per share from continuing operations was $(3.51), compared to $0.54 in the same period last year[7]. - Adjusted EBITDA for the three months ended December 31, 2024, was $61 million, down from $70 million in the same period of 2023, reflecting a $9 million decrease primarily due to portfolio optimization actions[154]. - For the three months ended December 31, 2024, Ashland reported a net loss of $165 million compared to a net income of $26 million in the same period of 2023[188]. - The diluted EPS from continuing operations was $(3.51) for the three months ended December 31, 2024, compared to $0.54 in the prior year[191]. Asset and Liability Management - Total assets decreased to $5,231 million from $5,645 million as of September 30, 2024[8]. - Cash and cash equivalents at the end of the period were $219 million, down from $300 million at the beginning of the period[10]. - As of December 31, 2024, Ashland's long-term debt was $1,313 million, a decrease from $1,349 million as of September 30, 2024[54]. - The total allowance for credit losses was $1 million at both December 31, 2024, and September 30, 2024[97]. - Ashland's restricted investments totaled $350 million as of December 31, 2024, with $73 million classified within other current assets[41]. Impairments and Restructuring - An impairment charge of $183 million was recorded related to the Avoca business, impacting the loss on acquisitions and divestitures[22]. - The company initiated a restructuring plan in fiscal 2025 to offset the impact from the sale of the Nutraceuticals business, which was completed in fiscal 2024[29]. - The company reported an impairment charge of $183 million related to the Avoca business for the three months ended December 31, 2024[133]. - Ashland initiated a $30 million restructuring plan to offset impacts from the Nutraceuticals sale, with expected realization of 50% in fiscal 2025 and 50% in fiscal 2026[143]. Segment Performance - Life Sciences segment sales decreased to $134 million from $200 million, representing a decline of 33%[132]. - Personal Care segment sales increased slightly to $134 million from $129 million, a growth of 3.9%[132]. - Specialty Additives segment sales decreased to $115 million from $122 million, a decline of 5.7%[132]. - Operating income for Life Sciences was $14 million, down from $32 million, a decrease of 56.3%[132]. - Life Sciences reported a decrease in operating income to $14 million for the three months ended December 31, 2024, down from $32 million in the same period of 2023, representing a change of $(18) million[204]. Tax and Regulatory Matters - The effective tax rate for the three months ended December 31, 2024, was 21%, influenced by jurisdictional income mix and a net $8 million from unfavorable tax discrete items[68]. - The overall effective tax rate for the three months ended December 31, 2023, was a benefit of 600%, influenced by jurisdictional income mix and net favorable tax discrete items of $24 million[70]. - As of December 31, 2024, the balance of unrecognized tax benefits was $64 million, with a decrease of $2 million related to prior years and an increase of $1 million for the current year[72]. Environmental and Legal Reserves - Total reserves for asbestos claims were $264 million as of December 31, 2024, reflecting an increase of $24 million during fiscal 2024[83]. - Ashland's asbestos-related litigation reserves are currently estimated at $264 million, with potential future costs ranging up to approximately $410 million, depending on various assumptions[99]. - The total reserves for environmental remediation decreased from $221 million at September 30, 2024, to $216 million at December 31, 2024, reflecting disbursements of $6 million and revised obligation estimates of $1 million[102][103]. Market and Operational Challenges - The company anticipates challenges due to ongoing geopolitical conflicts affecting supply chains and market conditions[134]. - Total sales for the current quarter decreased by $68 million to $405 million, driven by divestitures, lower volume, unfavorable pricing, and foreign currency exchange impacts[156]. - The decline in sales, operating income, and EBITDA was attributed to lower volume, portfolio optimization activities, divestiture of the Nutraceuticals business, unfavorable pricing, and foreign currency exchange impacts[205]. Stock and Dividends - The company has a stock repurchase program with $620 million remaining available for repurchase as of December 31, 2024, following the authorization of a new $1 billion program in June 2023[110]. - Dividends paid in the first quarter of fiscal 2025 were $0.405 per share, an increase from $0.385 per share in the first quarter of fiscal 2024[112].

Financial Performance - First quarter sales were $405 million, down 14% from $473 million in the prior-year quarter, with Portfolio Optimization reducing sales by approximately $50 million or 11%[3] - Loss from continuing operations was $166 million, or a loss of $3.51 per diluted share, compared to income of $28 million in the prior-year quarter[5] - Adjusted EBITDA was $61 million, down 13% from $70 million in the prior-year quarter, primarily driven by Portfolio Optimization and increased expenses[5] - Life Sciences sales declined 33% year-over-year to $134 million, primarily due to Portfolio Optimization and reduced pharma sales volumes[9] - Personal Care sales increased 4% year-over-year to $134 million, with a 6% increase excluding Portfolio Optimization impacts[12] - Specialty Additives sales were $115 million, down 6% from the prior-year quarter, primarily due to Portfolio Optimization[14] - Adjusted operating income for Personal Care was $12 million, compared to $2 million in the prior-year quarter, reflecting strong performance[13] - Ashland reported a net loss of $165 million for the three months ended December 31, 2024, compared to a net income of $26 million in the same period of 2023[40] - The diluted earnings per share from continuing operations was $(3.51) for Q4 2024, a significant decline from $0.54 in Q4 2023[40] - Total sales decreased by 14.4% to $405 million in Q4 2024, down from $473 million in Q4 2023[40] - Operating loss for the quarter was $(179) million, compared to an operating loss of $(18) million in the prior year[40] - Adjusted EBITDA for Ashland Inc. was $61 million in Q4 2024, down 13% from $70 million in Q4 2023[44] - The Life Sciences segment's adjusted EBITDA decreased to $28 million in Q4 2024 from $48 million in Q4 2023, reflecting a 42% decline[44] - The Personal Care segment saw an increase in adjusted EBITDA to $30 million in Q4 2024, up from $22 million in Q4 2023, marking a 36% growth[44] - Specialty Additives reported an adjusted EBITDA of $13 million in Q4 2024, compared to $6 million in Q4 2023, representing a 117% increase[44] Cash Flow and Assets - Cash flows used by operating activities totaled $30 million, compared to cash flows provided of $201 million in the prior-year quarter[7] - Cash and cash equivalents decreased to $219 million at the end of Q4 2024, down from $300 million at the end of Q3 2024[41] - Total assets decreased to $5.231 billion as of December 31, 2024, from $5.645 billion as of September 30, 2024[41] - Free cash flows for Ashland Inc. were negative $53 million in Q4 2024, a significant decline from positive $165 million in Q4 2023[48] - Operating cash flow conversion was 18% in Q4 2024, a sharp decrease from 773% in Q4 2023[48] - Ashland's total liabilities decreased to $2.639 billion as of December 31, 2024, from $2.777 billion as of September 30, 2024[41] Strategic Initiatives - The company signed a definitive agreement to sell its Avoca business, part of its portfolio optimization strategy[3] - The company plans to focus on restructuring and optimization efforts to improve future performance[46] Key Items and Adjustments - The company incurred a loss of $183 million on acquisitions and divestitures in Q4 2024, compared to a loss of $2 million in the same quarter of the previous year[40] - The company incurred key items totaling $208 million before tax, including an Avoca impairment of $183 million[53] - Adjusted operating income (non-GAAP) for Q4 2024 was $11 million, down from $16 million in Q4 2023[51] - Total key items after tax amounted to $3.50 million in Q4 2024, compared to $(0.42) million in Q4 2023[57] - Key items before tax included an Avoca impairment of $3.89 million in Q4 2024, with no equivalent in Q4 2023[57] - The tax effect of key items was $(1.07) million in Q4 2024, compared to $(0.02) million in Q4 2023[57] - Amortization expense adjustment (net of tax) was $0.29 million for Q4 2024, slightly down from $0.33 million in Q4 2023[57] - Uncertain tax positions contributed $0.02 million to key items in Q4 2024, with no contribution in Q4 2023[57] - Other and tax reform related activity resulted in a $0.15 million impact in Q4 2024, compared to a $(0.47) million impact in Q4 2023[57] - Adjusted Diluted EPS from Continuing Operations (excluding intangibles amortization expense) was $0.28 million in Q4 2024, down from $0.45 million in Q4 2023[57]

PART I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) Ashland Inc. is a global specialty additives and materials company serving diverse consumer and industrial markets - Ashland Inc. is a global specialty additives and materials company with approximately **3,200** employees, serving customers in over **100** countries across various consumer and industrial markets[7](index=7&type=chunk) - The company's reportable segments include Life Sciences, Personal Care, Specialty Additives, and Intermediates, with Unallocated and Other covering corporate governance and legacy matters[7](index=7&type=chunk) Fiscal Year 2024 Sales Contribution by Product Category (10% or greater of total consolidated sales) | Product | % of Ashland total consolidated sales | | :---------------------- | :------------------------------------ | | Cellulosics | 37% | | Polyvinylpyrrolidones (PVP) | 23% | - Ashland maintains a company-wide environmental policy, with reserves for environmental remediation and related litigation amounting to **$221 million** at September **30**, **2024**, with a reasonably possible upper range of **$485 million**[23](index=23&type=chunk)[24](index=24&type=chunk) - The company operates in highly competitive markets, with competition based on product performance, quality, price, availability, customer service, and technical capability. Key competitors are often larger with greater financial resources[27](index=27&type=chunk) - Ashland's human capital strategy focuses on a Zero Incident Culture (ZIC) for safety, aligning operations with the Paris Climate Accord, attracting and developing global talent, ensuring competitive and equitable pay, and fostering an inclusive and diverse workforce[33](index=33&type=chunk)[35](index=35&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) Employee Demographics as of September 30, 2024 | Category | Percentage | | :-------------- | :--------- | | Total Employees | 3,200 | | Male Employees | 68% | | Female Employees| 32% | | US Ethnically Diverse | 21% | | Board Diversity | 72% | | Executive Committee Women | 30% | | Executive Committee Ethnic Diversity | 60% | [General](index=4&type=section&id=General) [Life Sciences](index=5&type=section&id=Life%20Sciences) [Personal Care](index=5&type=section&id=Personal%20Care) [Specialty Additives](index=6&type=section&id=Specialty%20Additives) [Intermediates](index=7&type=section&id=Intermediates) [Miscellaneous](index=7&type=section&id=Miscellaneous) [Environmental Matters](index=7&type=section&id=Environmental%20Matters) [Product Control, Registration and Inventory](index=8&type=section&id=Product%20Control,%20Registration%20and%20Inventory) [Remediation](index=8&type=section&id=Remediation) [Air](index=8&type=section&id=Air) [Solid Waste](index=9&type=section&id=Solid%20Waste) [Water](index=9&type=section&id=Water) [Climate Change and Related Regulatory Developments](index=9&type=section&id=Climate%20Change%20and%20Related%20Regulatory%20Developments) [Competition](index=9&type=section&id=Competition) [Intellectual Property](index=10&type=section&id=Intellectual%20Property) [Raw Materials and Energy](index=10&type=section&id=Raw%20Materials%20and%20Energy) [Research and Development](index=10&type=section&id=Research%20and%20Development) [Seasonality](index=10&type=section&id=Seasonality) [Human Capital](index=10&type=section&id=Human%20Capital) [Employee Health and Safety](index=10&type=section&id=Employee%20Health%20and%20Safety) [Environmental](index=10&type=section&id=Environmental) [Human Capital Management](index=11&type=section&id=Human%20Capital%20Management) [Competitive Pay and Benefits](index=12&type=section&id=Competitive%20Pay%20and%20Benefits) [Inclusion and Diversity](index=13&type=section&id=Inclusion%20and%20Diversity) [Talent Management](index=14&type=section&id=Talent%20Management) [Forward-Looking Statements](index=14&type=section&id=Forward-Looking%20Statements) [Item 1A. Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) Ashland faces a range of significant risks that could adversely affect its business, financial performance, and growth - Ashland's aggressive growth goals are subject to risks such as failure to optimize assets, integrate acquisitions, and manage unexpected costs, potentially leading to reduced sales or asset impairment[44](index=44&type=chunk)[45](index=45&type=chunk) - Business disruptions from natural disasters, operational hazards, supply chain issues, cyber-attacks, and geopolitical conflicts (e.g., Ukraine/Russia, Israel/Hamas) could severely harm operations and financial performance, with insurance potentially insufficient to cover all damages[46](index=46&type=chunk) - Climate change poses risks including supply chain disruptions, operational impacts in vulnerable areas, increased energy costs, water scarcity, and scrutiny over raw material sourcing (e.g., deforestation). Failure to meet sustainability commitments could also lead to reputational and business impacts[47](index=47&type=chunk)[49](index=49&type=chunk) - Operating in highly competitive global markets, Ashland faces downward pressure on prices and margins, and may struggle to pass on increased raw material or energy costs to customers. The inability to develop new, sustainable products could result in market share loss[54](index=54&type=chunk)[55](index=55&type=chunk)[57](index=57&type=chunk) - Ashland's substantial global operations (over half of net sales outside North America) expose it to risks from foreign exchange fluctuations, trade restrictions, geopolitical instability, and difficulties in enforcing agreements or collecting receivables in foreign legal systems[50](index=50&type=chunk)[51](index=51&type=chunk) - The company's substantial debt could limit its ability to fund operations, acquisitions, and respond to market changes, potentially leading to default if cash flow is insufficient for repayment[52](index=52&type=chunk) - Ashland relies on IT systems, patents, trademarks, and trade secrets, making it vulnerable to cybersecurity threats, intellectual property infringement claims, and the loss of proprietary information[59](index=59&type=chunk)[60](index=60&type=chunk)[62](index=62&type=chunk) - Significant legal and regulatory risks include product liability claims, substantial environmental remediation costs (reserves of **$221 million**, potential upper end **$485 million**), and asbestos litigation liabilities (**$459 million** at Sept **30**, **2024**), which are subject to inherent uncertainties in estimation[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) - Changes in tax laws, such as the OECD's Pillar Two initiative for a **15%** global minimum tax, and disagreements with tax authorities in over **100** countries, could adversely affect Ashland's effective tax rates and cash flows[68](index=68&type=chunk) [Risks Related to the Company's Business Operations, Financial Performance and Growth](index=14&type=section&id=Risks%20Related%20to%20the%20Company's%20Business%20Operations,%20Financial%20Performance%20and%20Growth) [Risks Related to Competition](index=18&type=section&id=Risks%20Related%20to%20Competition) [Risks Related to Human Capital](index=19&type=section&id=Risks%20Related%20to%20Human%20Capital) [Risks Related to Information Technology, Cybersecurity and Intellectual Property](index=19&type=section&id=Risks%20Related%20to%20Information%20Technology,%20Cybersecurity%20and%20Intellectual%20Property) [Risks Related to Legal and Regulatory Compliance and Litigation](index=20&type=section&id=Risks%20Related%20to%20Legal%20and%20Regulatory%20Compliance%20and%20Litigation) [Risks Related to Taxation](index=22&type=section&id=Risks%20Related%20to%20Taxation) [Item 1B. Unresolved Staff Comments](index=22&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments to report - The company has no unresolved staff comments[69](index=69&type=chunk) [Item 1C. Cybersecurity](index=22&type=section&id=Item%201C.%20Cybersecurity) Ashland maintains a robust information security program, aligned with NIST Cybersecurity Framework **2.0**, as part of its Enterprise Risk Management - Ashland's information security program, part of its ERM, aligns with NIST Cybersecurity Framework **2.0** and includes an incident response plan, **24/7** Security Operations Center, and a dedicated threat hunting team[70](index=70&type=chunk) - The program also incorporates employee training, periodic testing of security systems, and engagement with third-party consultants for risk identification and assessment[70](index=70&type=chunk) - The Vice President of Cyber Security, with over **30** years of IT experience, leads the program, and the Board's Audit Committee provides oversight of cybersecurity risks[73](index=73&type=chunk) - As of the report date, Ashland is not aware of any cybersecurity incidents that have materially affected its business, results of operations, or financial condition[72](index=72&type=chunk) [Risk Management and Strategy](index=22&type=section&id=Risk%20Management%20and%20Strategy) [Governance](index=23&type=section&id=Governance) [Item 2. Properties](index=23&type=section&id=Item%202.%20Properties) Ashland's corporate headquarters is in Wilmington, Delaware, which is owned, while other principal offices and shared service centers are leased - Ashland's corporate headquarters is owned in Wilmington, Delaware, with other major operational offices and shared service centers leased in various global locations[74](index=74&type=chunk) - The company considers its physical properties suitable and adequate for its business[74](index=74&type=chunk) [Item 3. Legal Proceedings](index=23&type=section&id=Item%203.%20Legal%20Proceedings) Ashland is involved in material legal proceedings, primarily asbestos-related litigation and environmental proceedings under CERCLA and similar state laws - Ashland faces asbestos-related litigation primarily from indemnification obligations related to the **1990** sale of Riley Stoker Corporation and claims against its subsidiary Hercules LLC[75](index=75&type=chunk)[76](index=76&type=chunk) - The company is identified as a 'potentially responsible party' (PRP) at **53** sites under CERCLA and similar state laws for environmental investigation and cleanup costs[77](index=77&type=chunk) - Ashland is involved in the Lower Passaic River, New Jersey matters, participating in remedial investigation and feasibility studies and facing lawsuits from other chemical companies for cost recovery[77](index=77&type=chunk) - For other pending legal proceedings, including commercial, product liability, toxic tort, and environmental matters, Ashland believes adequate reserves are recorded, and potential losses are not material as of September **30**, **2024**[78](index=78&type=chunk) [Asbestos-Related Litigation](index=23&type=section&id=Asbestos-Related%20Litigation) [Environmental Proceedings](index=24&type=section&id=Environmental%20Proceedings) [Other Pending Legal Proceedings](index=24&type=section&id=Other%20Pending%20Legal%20Proceedings) [Item 4. Mine Safety Disclosures](index=25&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Ashland Inc - Item **4**. Mine Safety Disclosures is not applicable to Ashland Inc[80](index=80&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=26&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Ashland's common stock is listed on the NYSE under the ticker symbol "ASH", with approximately **8,003** holders of record as of October **31**, **2024** - Ashland's common stock is listed on the NYSE under the ticker symbol "ASH"[7](index=7&type=chunk) - As of October **31**, **2024**, there were approximately **8,003** holders of record of Ashland's Common Stock[83](index=83&type=chunk) - Ashland expects to continue paying quarterly cash dividends comparable to past dividends, subject to the discretion of its Board of Directors[83](index=83&type=chunk) Common Stock Repurchase Activity (Q4 Fiscal 2024) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Dollar Value Remaining (in millions) | | :-------------------------- | :------------------------------- | :--------------------------- | :----------------------------------- | | July 1, 2024 to July 31, 2024 | — | — | 770 | | August 1, 2024 to August 31, 2024 | 992,380 | $86.44 | 684 | | September 1, 2024 to September 30, 2024 | 740,117 | $86.82 | 620 | | **Total** | **1,732,497** | | **620** | - As of September **30**, **2024**, **$620 million** remained available for repurchase under the **2023** Stock Repurchase Program[88](index=88&type=chunk) [Market Information](index=26&type=section&id=Market%20Information) [Holders](index=26&type=section&id=Holders) [Dividends](index=26&type=section&id=Dividends) [FIVE-YEAR TOTAL RETURN PERFORMANCE GRAPH](index=26&type=section&id=FIVE-YEAR%20TOTAL%20RETURN%20PERFORMANCE%20GRAPH) [Repurchases of Company Common Stock](index=27&type=section&id=Repurchases%20of%20Company%20Common%20Stock) [Item 6. [Reserved]](index=27&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation](index=27&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operation) Ashland Inc. is a global specialty additives and ingredients company with a focus on ESG, serving diverse consumer and industrial markets - Ashland is a global specialty additives and ingredients company with **69%** of sales generated outside North America in **2024**[143](index=143&type=chunk) Sales by Geography (Percentage of Total Consolidated Sales) | Region | 2024 | 2023 | 2022 | | :---------------------- | :---- | :---- | :---- | | North America | 31 % | 31 % | 32 % | | Europe | 35 % | 36 % | 36 % | | Asia Pacific | 25 % | 23 % | 23 % | | Latin America & other | 9 % | 10 % | 9 % | Sales by Reportable Segment (Percentage of Total Consolidated Sales) | Reportable Segment | 2024 | 2023 | 2022 | | :---------------------- | :---- | :---- | :---- | | Life Sciences | 38 % | 40 % | 34 % | | Personal Care | 30 % | 27 % | 28 % | | Specialty Additives | 27 % | 28 % | 30 % | | Intermediates | 5 % | 5 % | 8 % | - Ashland's net income decreased from **$178 million** in **2023** to **$169 million** in **2024**, while diluted EPS increased slightly from **$3.31** to **$3.36**[150](index=150&type=chunk)[152](index=152&type=chunk) Key Financial Results (2024 vs. 2023 vs. 2022) | Metric | 2024 ($M) | 2023 ($M) | 2022 ($M) | 2024 Change ($M) | 2023 Change ($M) | | :------------------------------------------------------------------ | :-------- | :-------- | :-------- | :--------------- | :--------------- | | Net income | 169 | 178 | 927 | (9) | (749) | | Diluted earnings per share net income | 3.36 | 3.31 | 16.41 | 0.05 | (13.10) | | Income from continuing operations | 199 | 168 | 181 | 31 | (13) | | Diluted earnings per share income from continuing operations | 3.95 | 3.13 | 3.20 | 0.82 | (0.07) | | Operating income (loss) | (26) | 172 | 333 | (198) | (161) | | EBITDA | 142 | 419 | 1,342 | (277) | (923) | | Adjusted EBITDA | 459 | 459 | 590 | - | (131) | | Adjusted Diluted EPS from Continuing Operations Excluding Intangibles Amortization Expense | 4.45 | 4.07 | 5.70 | 0.38 | (1.63) | - Sales for **2024** decreased by **$78 million** (**4%**) compared to **2023**, primarily due to unfavorable pricing in a moderately deflationary raw material environment, and portfolio optimization initiatives[155](index=155&type=chunk) - Adjusted EBITDA remained consistent at **$459 million** for both **2024** and **2023**, driven by deflationary raw materials and favorable foreign exchange, offset by unfavorable pricing and lower volume in Life Sciences[154](index=154&type=chunk) - Ashland's liquidity position at September **30**, **2024**, included **$300 million** in cash and cash equivalents and **$596 million** in remaining borrowing capacity under its Revolving Credit Facility, totaling **$896 million** in available liquidity[214](index=214&type=chunk)[226](index=226&type=chunk) - The company's total debt outstanding was **$1,390 million** at September **30**, **2024**, with a consolidated net leverage ratio of **2.3** and an interest coverage ratio of **7.8**, well within covenant limits[227](index=227&type=chunk)[237](index=237&type=chunk) - For fiscal year **2025**, Ashland expects sales in the range of **$1.90 billion** to **$2.05 billion** and Adjusted EBITDA between **$430 million** and **$470 million**, anticipating lower growth, increased competitive intensity, and impacts from portfolio optimization[268](index=268&type=chunk) [BUSINESS OVERVIEW](index=43&type=section&id=BUSINESS%20OVERVIEW) [Ashland profile](index=43&type=section&id=Ashland%20profile) [Reportable segments](index=43&type=section&id=Reportable%20segments) [KEY DEVELOPMENTS](index=44&type=section&id=KEY%20DEVELOPMENTS) [Uncertainty relating to the ongoing Ukraine/Russia conflict and Israel/Hamas conflict](index=44&type=section&id=Uncertainty%20relating%20to%20the%20ongoing%20Ukraine/Russia%20conflict%20and%20Israel/Hamas%20conflict) [Other significant items](index=44&type=section&id=Other%20significant%20items) [Stock repurchase program](index=44&type=section&id=Stock%20repurchase%20program) [Stock repurchase program agreements](index=44&type=section&id=Stock%20repurchase%20program%20agreements) [Restructuring programs](index=44&type=section&id=Restructuring%20programs) [Nutraceuticals business](index=45&type=section&id=Nutraceuticals%20business) [RESULTS OF OPERATIONS – CONSOLIDATED REVIEW](index=45&type=section&id=RESULTS%20OF%20OPERATIONS%20%E2%80%93%20CONSOLIDATED%20REVIEW) [Consolidated review](index=45&type=section&id=Consolidated%20review) [Statements of Consolidated Comprehensive Income (Loss) – caption review](index=46&type=section&id=Statements%20of%20Consolidated%20Comprehensive%20Income%20(Loss)%20%E2%80%93%20caption%20review) [Adjusted income tax expense](index=50&type=section&id=Adjusted%20income%20tax%20expense) [Other comprehensive income (loss)](index=52&type=section&id=Other%20comprehensive%20income%20(loss)) [Use of non-GAAP measures](index=52&type=section&id=Use%20of%20non-GAAP%20measures) [EBITDA and Adjusted EBITDA](index=54&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) [Diluted EPS and Adjusted Diluted EPS](index=56&type=section&id=Diluted%20EPS%20and%20Adjusted%20Diluted%20EPS) [RESULTS OF OPERATIONS – REPORTABLE SEGMENT REVIEW](index=58&type=section&id=RESULTS%20OF%20OPERATIONS%20%E2%80%93%20REPORTABLE%20SEGMENT%20REVIEW) [Life Sciences](index=60&type=section&id=Life%20Sciences) [Personal Care](index=61&type=section&id=Personal%20Care) [Specialty Additives](index=62&type=section&id=Specialty%20Additives) [Intermediates](index=64&type=section&id=Intermediates) [Unallocated and other](index=65&type=section&id=Unallocated%20and%20other) [FINANCIAL POSITION](index=66&type=section&id=FINANCIAL%20POSITION) [Liquidity](index=66&type=section&id=Liquidity) [Operating activities](index=67&type=section&id=Operating%20activities) [Investing activities](index=69&type=section&id=Investing%20activities) [Financing activities](index=69&type=section&id=Financing%20activities) [Cash provided (used) by discontinued operations](index=70&type=section&id=Cash%20provided%20(used)%20by%20discontinued%20operations) [Free Cash Flow and other liquidity resources](index=70&type=section&id=Free%20Cash%20Flow%20and%20other%20liquidity%20resources) [Capital resources](index=71&type=section&id=Capital%20resources) [Debt](index=71&type=section&id=Debt) [Credit Agreements and Refinancing](index=72&type=section&id=Credit%20Agreements%20and%20Refinancing) [Debt repayments and repurchases](index=72&type=section&id=Debt%20repayments%20and%20repurchases) [Accounts receivable facilities and off-balance sheet arrangements](index=72&type=section&id=Accounts%20receivable%20facilities%20and%20off-balance%20sheet%20arrangements) [Foreign Accounts Receivable Sales Program](index=73&type=section&id=Foreign%20Accounts%20Receivable%20Sales%20Program) [Supply Chain Finance Program](index=74&type=section&id=Supply%20Chain%20Finance%20Program) [Other debt](index=74&type=section&id=Other%20debt) [Available borrowing capacity and liquidity](index=74&type=section&id=Available%20borrowing%20capacity%20and%20liquidity) [Covenants related to current Ashland debt agreements](index=74&type=section&id=Covenants%20related%20to%20current%20Ashland%20debt%20agreements) [Ashland credit ratings](index=75&type=section&id=Ashland%20credit%20ratings) [Additional capital resources](index=75&type=section&id=Additional%20capital%20resources) [Ashland cash projection](index=75&type=section&id=Ashland%20cash%20projection) [Total Equity](index=75&type=section&id=Total%20Equity) [2023 Stock repurchase program](index=76&type=section&id=2023%20Stock%20repurchase%20program) [Stockholder dividends](index=76&type=section&id=Stockholder%20dividends) [Capital expenditures](index=76&type=section&id=Capital%20expenditures) [OFF-BALANCE SHEET ARRANGEMENTS](index=77&type=section&id=OFF-BALANCE%20SHEET%20ARRANGEMENTS) [NEW ACCOUNTING PRONOUNCEMENTS](index=77&type=section&id=NEW%20ACCOUNTING%20PRONOUNCEMENTS) [CRITICAL ACCOUNTING ESTIMATES](index=77&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) [Environmental remediation and asset retirement obligations](index=77&type=section&id=Environmental%20remediation%20and%20asset%20retirement%20obligations) [Asbestos litigation](index=78&type=section&id=Asbestos%20litigation) [Accounting for goodwill and other indefinite-lived intangible assets](index=80&type=section&id=Accounting%20for%20goodwill%20and%20other%20indefinite-lived%20intangible%20assets) [Income taxes](index=81&type=section&id=Income%20taxes) [EFFECTS OF INFLATION AND CHANGING PRICES](index=82&type=section&id=EFFECTS%20OF%20INFLATION%20AND%20CHANGING%20PRICES) [OUTLOOK](index=83&type=section&id=OUTLOOK) [Portfolio-optimization actions](index=83&type=section&id=Portfolio-optimization%20actions) [Financial Outlook](index=83&type=section&id=Financial%20Outlook) [FORWARD-LOOKING STATEMENTS](index=83&type=section&id=FORWARD-LOOKING%20STATEMENTS) [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=84&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Ashland manages its exposure to foreign currency fluctuations using derivative instruments, primarily short-term forward contracts, to mitigate earnings volatility - Ashland uses foreign currency derivative instruments to manage exposure to foreign currency fluctuations, primarily for short-term intercompany loans[271](index=271&type=chunk) - Derivative contracts generally have maturities of less than twelve months, are valued at fair value, and net changes are recorded in selling, general and administrative expense[271](index=271&type=chunk) - As of September **30**, **2024**, Ashland had no significant open hedging contracts for commodities[271](index=271&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=85&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Ashland's audited consolidated financial statements, management's report on internal control, independent auditor's reports, and detailed notes on accounting policies and various financial items [Management's report on internal control over financial reporting](index=86&type=section&id=Management's%20report%20on%20internal%20control%20over%20financial%20reporting) [Reports of independent registered public accounting firm](index=87&type=section&id=Reports%20of%20independent%20registered%20public%20accounting%20firm) [Critical Audit Matters](index=88&type=section&id=Critical%20Audit%20Matters) [Valuation of Environmental Remediation Reserves](index=89&type=section&id=Valuation%20of%20Environmental%20Remediation%20Reserves) [Valuation of Asbestos Litigation Reserves](index=90&type=section&id=Valuation%20of%20Asbestos%20Litigation%20Reserves) [Statements of Consolidated Comprehensive Income (Loss)](index=91&type=section&id=Statements%20of%20Consolidated%20Comprehensive%20Income%20(Loss)) [Consolidated Balance Sheets](index=92&type=section&id=Consolidated%20Balance%20Sheets) [Statements of Consolidated Equity](index=93&type=section&id=Statements%20of%20Consolidated%20Equity) [Statements of Consolidated Cash Flows](index=94&type=section&id=Statements%20of%20Consolidated%20Cash%20Flows) [Notes to Consolidated Financial Statements](index=95&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [NOTE A – SIGNIFICANT ACCOUNTING POLICIES](index=95&type=section&id=NOTE%20A%20%E2%80%93%20SIGNIFICANT%20ACCOUNTING%20POLICIES) [NOTE B – DIVESTITURES](index=101&type=section&id=NOTE%20B%20%E2%80%93%20DIVESTITURES) [NOTE C – DISCONTINUED OPERATIONS](index=102&type=section&id=NOTE%20C%20%E2%80%93%20DISCONTINUED%20OPERATIONS) [NOTE D – RESTRUCTURING ACTIVITIES](index=103&type=section&id=NOTE%20D%20%E2%80%93%20RESTRUCTURING%20ACTIVITIES) [NOTE E – FAIR VALUE MEASUREMENTS](index=104&type=section&id=NOTE%20E%20%E2%80%93%20FAIR%20VALUE%20MEASUREMENTS) [NOTE F – PROPERTY, PLANT AND EQUIPMENT](index=108&type=section&id=NOTE%20F%20%E2%80%93%20PROPERTY,%20PLANT%20AND%20EQUIPMENT) [NOTE G – GOODWILL AND OTHER INTANGIBLES](index=108&type=section&id=NOTE%20G%20%E2%80%93%20GOODWILL%20AND%20OTHER%20INTANGIBLES) [NOTE H – DEBT](index=109&type=section&id=NOTE%20H%20%E2%80%93%20DEBT) [NOTE I – OTHER NONCURRENT ASSETS AND LIABILITIES](index=113&type=section&id=NOTE%20I%20%E2%80%93%20OTHER%20NONCURRENT%20ASSETS%20AND%20LIABILITIES) [NOTE J – LEASING ARRANGEMENTS](index=114&type=section&id=NOTE%20J%20%E2%80%93%20LEASING%20ARRANGEMENTS) [NOTE K – INCOME TAXES](index=115&type=section&id=NOTE%20K%20%E2%80%93%20INCOME%20TAXES) [NOTE L – EMPLOYEE BENEFIT PLANS](index=117&type=section&id=NOTE%20L%20%E2%80%93%20EMPLOYEE%20BENEFIT%20PLANS) [NOTE M – LITIGATION, CLAIMS AND CONTINGENCIES](index=122&type=section&id=NOTE%20M%20%E2%80%93%20LITIGATION,%20CLAIMS%20AND%20CONTINGENCIES) [NOTE N – EQUITY ITEMS](index=126&type=section&id=NOTE%20N%20%E2%80%93%20EQUITY%20ITEMS) [NOTE O – STOCK INCENTIVE PLANS](index=128&type=section&id=NOTE%20O%20%E2%80%93%20STOCK%20INCENTIVE%20PLANS) [NOTE P – REVENUE](index=131&type=section&id=NOTE%20P%20%E2%80%93%20REVENUE) [NOTE Q – REPORTABLE SEGMENT INFORMATION](index=132&type=section&id=NOTE%20Q%20%E2%80%93%20REPORTABLE%20SEGMENT%20INFORMATION) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=27&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There are no changes in or disagreements with accountants on accounting and financial disclosure to report - There are no changes in and disagreements with accountants on accounting and financial disclosure[89](index=89&type=chunk) [Item 9A. Controls and Procedures](index=27&type=section&id=Item%209A.%20Controls%20and%20Procedures) Ashland's management concluded that the company's disclosure controls and procedures were effective as of September **30**, **2024** - Ashland's disclosure controls and procedures were effective as of September **30**, **2024**, as concluded by management, including the CEO and CFO[90](index=90&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended September **30**, **2024**[90](index=90&type=chunk) [Item 9B. Other Information](index=28&type=section&id=Item%209B.%20Other%20Information) This section discloses a Rule **10b5-1** trading arrangement entered into by Robin E. Lampkin for the sale of **1,464** shares of Ashland Common Stock - Robin E. Lampkin, SVP, General Counsel, and Corporate Secretary, entered a Rule **10b5-1** trading arrangement to sell **1,464** shares of Ashland Common Stock, effective until February **28**, **2025**, or earlier completion/termination[92](index=92&type=chunk) - Ashland has an Insider Trading Policy to govern securities transactions by its directors, officers, and employees, promoting compliance with insider trading laws[93](index=93&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=28&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) There is no disclosure regarding foreign jurisdictions that prevent inspections - There is no disclosure regarding foreign jurisdictions that prevent inspections[93](index=93&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=29&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from Ashland's **2025** Annual Meeting of Stockholders Proxy Statement - Information on directors, executive officers, and corporate governance is incorporated by reference from the **2025** Annual Meeting of Stockholders Proxy Statement[96](index=96&type=chunk) [Item 11. Executive Compensation](index=29&type=section&id=Item%2011.%20Executive%20Compensation) Details on executive compensation are incorporated by reference from Ashland's **2025** Annual Meeting of Stockholders Proxy Statement - Executive compensation information is incorporated by reference from the **2025** Annual Meeting of Stockholders Proxy Statement[97](index=97&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=29&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership of beneficial owners and management is incorporated by reference from the **2025** Annual Meeting of Shareholders Proxy Statement - Security ownership information is incorporated by reference from the **2025** Annual Meeting of Shareholders Proxy Statement[98](index=98&type=chunk) Equity Compensation Plan Information as of September 30, 2024 | Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans | | :------------------------------------------------ | :------------------------------------------------------------------------ | :------------------------------------------------------------------------ | :----------------------------------------------------------------------------- | | Equity compensation plans approved by security holders | 534,449 | $66.16 | 10,363,703 | | Equity compensation plans not approved by security holders | 51,848 | — | 1,275,314 | | **Total** | **586,297** | **$66.16** | **11,639,017** | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=30&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from Ashland's **2025** Annual Meeting of Stockholders Proxy Statement - Information on certain relationships, related transactions, and director independence is incorporated by reference from the **2025** Annual Meeting of Stockholders Proxy Statement[104](index=104&type=chunk) [Item 14. Principal Accountant Fees and Services](index=30&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information concerning principal accountant fees and services is incorporated by reference from Ashland's **2025** Annual Meeting of Stockholders Proxy Statement - Information on principal accountant fees and services is incorporated by reference from the **2025** Annual Meeting of Stockholders Proxy Statement[105](index=105&type=chunk) PART IV [Item 15. Exhibits and Financial Statement Schedules](index=31&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all exhibits and financial statement schedules filed as part of the **10-K** report, including various agreements, corporate documents, debt indentures, and compensation plans - Item **15** details various exhibits and financial statement schedules, including stock and asset purchase agreements, corporate governance documents, debt indentures, and equity compensation plans[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk)[117](index=117&type=chunk)[119](index=119&type=chunk)[121](index=121&type=chunk) - The report includes Inline XBRL Instance Document, Taxonomy Extension Schema Document, Calculation Linkbase Document, Definition Linkbase Document, Label Linkbase Document, and Presentation Linkbase Document[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) [Item 16. Form 10-K Summary](index=40&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item indicates that no Form **10-K** Summary is provided - No Form **10-K** Summary is provided[135](index=135&type=chunk)

Ashland Inc. (NYSE:ASH) Q4 2024 Earnings Conference Call November 7, 2024 8:00 AM ET Company Participants William Whitaker - VP, Finance and Director, IR Guillermo Novo - Chair and CEO Kevin Willis - SVP and CFO Alessandra Faccin - SVP and GM, Life Sciences and Intermediates Jim Minicucci - SVP and GM, Personal Care Dago Caceres - SVP and GM, Specialty Additives Conference Call Participants Michael Sison - Wells Fargo James Cannon - UBS John Roberts - Mizuho Mike Harrison - Seaport Research Partners Operato ...

earnings conference call fourth quarter fiscal 2024 — November 7, 2024 9:00 a.m. ET 2 — Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Ashland has identified some of these forward-looking statements with words such as "anticipates," "believes," "expects," "estimates," "is likely," "predicts," "projects," "forecasts," "objectives," " ...

[Financial Results and Outlook](index=1&type=section&id=Ashland%20reports%20financial%20results%20for%20fourth-quarter%20fiscal%202024) Ashland's financial performance for Q4 and full fiscal year 2024, segment results, portfolio optimization, and fiscal year 2025 outlook are detailed [Fourth-Quarter Fiscal 2024 Financial Highlights](index=1&type=section&id=Financial%20results%20for%20fourth-quarter%20fiscal%202024) Ashland reported a 1% sales increase to $522 million in Q4 FY2024, with Adjusted EBITDA up 68% to $124 million, despite portfolio optimization impacts and operational issues Q4 FY2024 Key Financial Metrics (in millions) | Metric | Q4 FY2024 | Q4 FY2023 | Change | | :--- | :--- | :--- | :--- | | Sales | $522 million | $518 million | +1% | | Income from Continuing Operations | $19 million | ($8 million) | N/A | | Adjusted EBITDA | $124 million | $74 million | +68% | | Diluted EPS from Continuing Operations | $0.39 | ($0.15) | N/A | | Adjusted Diluted EPS (excl. intangibles) | $1.26 | $0.41 | +207% | - Portfolio optimization initiatives, including the sale of the nutraceuticals business and curtailment of certain CMC and MC products, reduced overall sales by approximately **$24 million**, or **5%**, compared to the prior-year quarter[1](index=1&type=chunk)[2](index=2&type=chunk) - Adjusted EBITDA fell short of expectations, primarily due to HEC operating issues of about **$5 million** during the commissioning of productivity investments and weaker coatings demand in China[1](index=1&type=chunk) - The company repurchased **1.7 million shares** in Q4, with **$620 million** remaining under its evergreen share repurchase authorization[1](index=1&type=chunk)[4](index=4&type=chunk) - Cash flows from operating activities were **$80 million**, down from **$130 million** in the prior-year quarter. Ongoing free cash flow was **$88 million**[1](index=1&type=chunk)[5](index=5&type=chunk) [Reportable Segment Performance (Q4 2024)](index=2&type=section&id=Reportable%20Segment%20Performance) All business units achieved organic sales volume growth in Q4 2024, with varied sales performance across Life Sciences, Personal Care, Specialty Additives, and Intermediates segments [Life Sciences](index=2&type=section&id=Life%20Sciences) Pharma revenue grew 6%, but overall segment sales declined 5% to $192 million due to portfolio optimization - Pharma generated **6% revenue growth**, but overall segment sales were down **5%** to **$192 million**, primarily due to a **$15 million (7%)** reduction from CMC portfolio optimization and the nutraceuticals divestiture[8](index=8&type=chunk) Life Sciences Q4 Performance (in millions) | Metric | Q4 FY2024 | Q4 FY2023 | Change | | :--- | :--- | :--- | :--- | | Sales | $192 million | $203 million | -5% | | Adjusted EBITDA | $56 million | $48 million | +17% | [Personal Care](index=2&type=section&id=Personal%20Care) Sales grew 11% to $162 million, driven by strong demand in skin and hair care across most regions - Sales grew **11%** to **$162 million**, driven by higher sales volume in skin care and hair care, reflecting improved demand in most regions. Globalization initiatives for biofunctionals and microbial protection also delivered strong growth[10](index=10&type=chunk) Personal Care Q4 Performance (in millions) | Metric | Q4 FY2024 | Q4 FY2023 | Change | | :--- | :--- | :--- | :--- | | Sales | $162 million | $146 million | +11% | | Adjusted EBITDA | $47 million | $36 million | +31% | [Specialty Additives](index=2&type=section&id=Specialty%20Additives) Sales remained flat at $144 million, as volume growth was offset by portfolio optimization and lower pricing - Sales were flat at **$144 million**, as higher sales volumes in coatings and performance specialties were offset by portfolio optimization actions (reducing sales by **$6 million** or **4%**) and lower pricing, particularly in China[11](index=11&type=chunk) Specialty Additives Q4 Performance (in millions) | Metric | Q4 FY2024 | Q4 FY2023 | Change | | :--- | :--- | :--- | :--- | | Sales | $144 million | $144 million | 0% | | Adjusted EBITDA | $29 million | $8 million | +263% | [Intermediates](index=3&type=section&id=Intermediates) Sales decreased 3% to $36 million, primarily due to lower NMP pricing despite increased BDO volumes - Sales decreased **3%** to **$36 million**, driven by lower n-methyl-2-pyrrolidone (NMP) pricing, which was partially offset by increased butanediol (BDO) volumes[13](index=13&type=chunk) Intermediates Q4 Performance (in millions) | Metric | Q4 FY2024 | Q4 FY2023 | Change | | :--- | :--- | :--- | :--- | | Sales | $36 million | $37 million | -3% | | Adjusted EBITDA | $10 million | $3 million | +233% | [Unallocated & Other](index=3&type=section&id=Unallocated%20%26%20Other) Adjusted unallocated and other expense EBITDA was $18 million, a decrease from the prior-year quarter - Adjusted unallocated and other expense EBITDA was **$18 million**, compared to **$21 million** in the prior-year quarter[15](index=15&type=chunk) [Fiscal Year 2024 Results Summary](index=3&type=section&id=Fiscal%20Year%202024%20Results%20Summary) For fiscal year 2024, sales decreased 4% to $2.1 billion, while Adjusted EBITDA remained flat at $459 million, with margin expansion to 22% FY2024 Key Financial Metrics (in millions) | Metric | FY2024 | FY2023 | Change | | :--- | :--- | :--- | :--- | | Sales | $2.1 billion | $2.2 billion | -4% | | Income from Continuing Operations | $199 million | $168 million | +18% | | Adjusted EBITDA | $459 million | $459 million | 0% | | Diluted EPS from Continuing Operations | $3.95 | $3.13 | +26% | | Adjusted Diluted EPS (excl. intangibles) | $4.45 | $4.07 | +9% | - Adjusted EBITDA margin increased by **80 basis points** to **22%** compared to the prior year[18](index=18&type=chunk) - Ongoing free cash flow increased to **$270 million** from **$217 million** in the prior year[19](index=19&type=chunk) [Portfolio Optimization Actions](index=3&type=section&id=Portfolio%20Optimization%20Actions) Ashland is optimizing its portfolio through strategic reviews, a $150 million share buyback, and restructuring plans to generate $90 million in savings - The company is taking the following actions to strengthen its core and offset the impact of portfolio optimization[19](index=19&type=chunk) - Reviewing strategic alternatives for the Avoca business line - Completed a **$150 million** share buyback to offset the earnings impact from the nutraceuticals divestiture and future exit of Avoca - Initiated a **$30 million** restructuring plan, with savings realized over fiscal years **2025** and **2026** - Advancing a multi-year manufacturing optimization plan expected to generate **$60 million** in pre-tax savings, with **$5 million** expected in fiscal **2025**[19](index=19&type=chunk) [Fiscal Year 2025 Financial Outlook](index=4&type=section&id=Financial%20Outlook) Ashland projects FY2025 sales between $1.90 billion and $2.05 billion and Adjusted EBITDA between $430 million and $470 million, factoring in economic uncertainties and cost reductions FY2025 Guidance (in billions/millions) | Metric | FY2025 Outlook | | :--- | :--- | | Sales | $1.90 billion to $2.05 billion | | Adjusted EBITDA | $430 million to $470 million | - Key assumptions for the FY2025 outlook include: - Continued geopolitical and economic uncertainty, with lower overall growth - A challenged Chinese economy, especially the property market - Volume growth partially offset by price erosion from competitive intensity - A net negative impact from portfolio actions (nutraceuticals sale, Avoca exit) and price carryover, partially offset by improved absorption and cost reductions[20](index=20&type=chunk) - The company is increasing its focus on controllables, initiating restructuring to reduce costs and improve manufacturing productivity, especially in its HEC and VP&D businesses[22](index=22&type=chunk) [Upcoming Events](index=4&type=section&id=Conference%20Call%20Webcast) Ashland will host an earnings conference call on November 7, 2024, and a strategy update event on December 10, 2024, in New York City - An earnings conference call is scheduled for **9 a.m. ET** on Thursday, **November 7, 2024**[23](index=23&type=chunk) - A strategy update event will be held on Tuesday, **December 10, 2024**, in New York City, to review strategic priorities and key initiatives[25](index=25&type=chunk) [Financial Statements and Reconciliations](index=8&type=section&id=Financial%20Statements%20and%20Reconciliations) This section provides detailed consolidated financial statements, including income, balance sheets, cash flows, and reconciliations of non-GAAP financial measures [Statements of Consolidated Income (Loss)](index=8&type=section&id=Table%201) This table presents the consolidated income statement for fiscal years 2024 and 2023, highlighting sales, gross profit, and net income Fiscal Year Income Statement Highlights (in millions) | Line Item | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Sales | $2,113 | $2,191 | | Gross Profit | $618 | $668 | | Operating Income (Loss) | ($26) | $172 | | Income from Continuing Operations | $199 | $168 | | Net Income (Loss) | $169 | $178 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Table%202) This table details the company's consolidated balance sheets as of September 30, 2024 and 2023, showing assets, liabilities, and equity Balance Sheet Highlights (in millions) | Line Item | Sept 30, 2024 | Sept 30, 2023 | | :--- | :--- | :--- | | Total Current Assets | $1,195 | $1,506 | | Total Assets | $5,645 | $5,939 | | Total Current Liabilities | $490 | $456 | | Long-Term Debt | $1,349 | $1,314 | | Total Liabilities | $2,777 | $2,842 | | Stockholders' Equity | $2,868 | $3,097 | [Statements of Consolidated Cash Flows](index=9&type=section&id=Table%203) This table outlines the consolidated cash flows from operating, investing, and financing activities for fiscal years 2024 and 2023 Fiscal Year Cash Flow Highlights (in millions) | Line Item | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Cash from Operating Activities | $462 | $294 | | Cash from Investing Activities | ($51) | ($109) | | Cash from Financing Activities | ($479) | ($371) | | Decrease in Cash | ($117) | ($229) | | Cash at End of Period | $300 | $417 | [Reconciliation of Non-GAAP Data](index=10&type=section&id=Tables%204-8) These tables provide detailed reconciliations of GAAP measures to non-GAAP measures, including Adjusted EBITDA, Ongoing Free Cash Flow, and Adjusted Diluted EPS FY2024 Reconciliation of Net Income to Adjusted EBITDA (in millions) | Line Item | FY 2024 | | :--- | :--- | | Net Income | $169 | | Adjustments (Taxes, Interest, D&A, etc.) | +123 | | Key Items (Impairments, Restructuring, etc.) | +167 | | **Adjusted EBITDA** | **$459** | FY2024 Reconciliation of Operating Cash Flow to Ongoing Free Cash Flow (in millions) | Line Item | FY 2024 | | :--- | :--- | | Cash from Operating Activities | $462 | | Additions to property, plant and equipment | ($137) | | **Free Cash Flow** | **$325** | | Adjustments (A/R Programs, Restructuring, etc.) | ($55) | | **Ongoing Free Cash Flow** | **$270** | FY2024 Reconciliation of Diluted EPS to Adjusted Diluted EPS | Line Item | FY 2024 | | :--- | :--- | | Diluted EPS from continuing operations | $3.95 | | Total key items adjustment | ($0.75) | | **Adjusted Diluted EPS** | **$3.20** | | Amortization expense adjustment | $1.25 | | **Adjusted Diluted EPS (Excl. Intangibles)** | **$4.45** |

- CRG-023 is a CD19-, CD20-, CD22-targeting tri-specific CAR T product candidate designed with the goal of providing more patients with a broad range of B-cell malignancies with durable responses by addressing several known causes of relapse, resulting in a potential best-in-class CAR T-cell therapy - - First of its kind, tri-cistronic CAR T to express three independent CARs from a single vector, with each CAR having a distinct co-stimulatory domain – - Data demonstrated sustained anti-tumor activity and a ...

– Results from Phase 3 ENERGIZE-T Study of Mitapivat in Transfusion-dependent Thalassemia will be Presented in Oral Session – – Tebapivat Phase 1 Data in Sickle Cell Disease and Phase 2b Trial-in-progress Update in Lower-risk Myelodysplastic Syndromes will be Presented and Published – – Live and Webcast Investor Event with Agios Leadership and Medical Experts will be Hosted Onsite on Monday, December 9 – CAMBRIDGE, Mass., Nov. 05, 2024 (GLOBE NEWSWIRE) -- Agios Pharmaceuticals, Inc. (Nasdaq: AGIO), a leader ...

Financial Data and Key Metrics Changes - Ashland's Q3 sales were approximately $544 million, roughly in line with the prior year, with a 3% reduction due to portfolio improvement initiatives [9][15] - Adjusted EBITDA for the quarter increased to $139 million, representing a 5% increase from the prior year, with an adjusted EBITDA margin of 25.6%, up from 24.4% [12][16] - Adjusted EPS for the quarter was $1.49 per share, up 21% from the prior-year quarter [16] Business Line Data and Key Metrics Changes - Personal Care sales increased by 20% to $175 million, with adjusted EBITDA rising 46% to $51 million, marking one of the most profitable quarters for this segment [18] - Specialty Additives sales declined by 1% to $150 million, but adjusted EBITDA increased by 31% to $38 million, with a recovery in adjusted EBITDA margin to 25.3% [20] - Life Sciences sales decreased by 11% to $195 million, with adjusted EBITDA down 18% to $59 million, primarily due to lower VP&D volumes [17] Market Data and Key Metrics Changes - Sales in North America, Europe, and Asia were stable to improving, while Latin America and the Middle East Africa showed weakness [15] - The regional recovery was mixed, with lower demand and increased competition in Asia, particularly affecting Specialty Additives [11] Company Strategy and Development Direction - Ashland is focused on portfolio optimization, including the sale of its nutraceutical business and reducing exposure to lower-margin segments [25][26] - The company aims to strengthen its competitive position in VP&D and HEC, with ongoing efforts to drive share gains [32][34] - Ashland continues to invest in technology platforms and new product launches to enhance growth opportunities [37][39] Management's Comments on Operating Environment and Future Outlook - Management noted that June sales were weaker than expected, a trend that continued into July, particularly affecting Specialty Additives [9][28] - The company expects Q4 sales in the range of $530 million to $540 million, with adjusted EBITDA between $130 million and $140 million, reflecting challenges in VP&D and softer market demand [30][40] - Management emphasized the importance of managing pricing and volume dynamics in a competitive environment, particularly in the VP&D segment [44][70] Other Important Information - Ashland repurchased $130 million of shares during the quarter and increased its dividend, reflecting confidence in long-term growth [12][24] - The company has a strong financial position with cash on hand of $399 million and total available liquidity of roughly $1 billion [22] Q&A Session Summary Question: Can you help us think about the 2025 bridge regarding fixed cost absorption and market growth? - Management indicated that the key issue is the VP&D and pharma share dynamics, with expectations for 2024 remaining largely unchanged except for the VP&D market share outlook [44][48] Question: What markets are seeing a downtick in demand? - Management noted that the biggest impact is in Specialty Additives, particularly coatings, with slower-than-expected growth in North America and Europe [55][56] Question: Can you size the VP&D pharma issue? - Management estimated that the VP&D issue resulted in a delta of around $14 million in Q3 compared to the prior year [64] Question: What is driving the pricing weakness in Personal Care and Specialty Additives? - Management explained that pricing dynamics are influenced by raw material deflation and competitive pressures, particularly in Asia [58][60] Question: How is the company managing the VP&D share loss? - Management stated that they are balancing pricing and volume gains, with ongoing negotiations with customers expected to impact future volumes [70][72]