2018 SIPA Annual Meeting

Transcription

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2 2018 SIPA Annual Meeting Mark Vlaisavich February 26, 2018 / efficacy usability allure integrity prfitability

3 agenda transfrmatin int specialty chemicals Ashland prfile Ashland industrial specialties Isgrip and Isset 2016 Ashland Inc.

4 transfrmatin frm il t specialty chemicals Acquired entered JV (Adhesives) ( Zeta Fractin ) Exited Ashland 2015 Distributin Elastmers exited JV exited JV Water Technlgies Ashland has a lng histry f successfully executing challenging strategic plans A decade ag, Management and Bard set the bjective t transfrm frm an il refiner t a premier specialty chemical cmpany Cmpleted numerus transfrmative transactins Created a highly differentiated leading specialty chemicals prtfli 4 4

5 Ashland prfile Ashland Sales 1 - $3.1 Billin Pharmachem Sales - ~$300 Millin By Business Unit (1) By Gegraphy (1)(2) By End Market (3) By Gegraphy (3) Ashland Perfrmance Materials I&S Cmpsites 23% Industrial Specialties 8% 33% 36% Cnsumer Specialties Nrth America LATAM/Other 40% 9% Eurpe 33% 18% Asia Fd, Beverage and Persnal Care 15% Fragrance and Flavrs Custm Manufacturing 33% 9% 43% Nrth America 53% Nutritin and Health Asia Other Eurpe 9% 1% 31% 59% Nrth America Ashland Specialty Ingredients 15+ End-Markets Sales in 100+ Cuntries ~60 Prductin Facilities 5 (1) Fr the Trailing 12 mnths ended March 31, 2017, excluding Valvline (2) Ashland includes nly U.S. and Canada in its Nrth America designatin (3) Fr the 12 mnths ended September 30, 2016

6 Ashland cmpany snapsht NYSE ticker symbl ASH ttal emplyees ~7,000 utside Nrth America 1 ~50% cuntries in which Ashland has sales Ashland includes nly US and Canada in its Nrth America designatin

7 specialty ingredients end-market diversity cnsumer specialties industrial specialties pharma persnal care nutritin catings adhesives cnstructin energy 7 binders skin care fd tablets capsules wund care skin ltins anti-aging prducts bdy washes suncare fd texturant custm fd blends catings hair care beverage tablets shamps cnditiners musses/gels hairspray disintegrants/ time release tablets capsules ral care tthpaste muthwash denture adhesives clarificatin stabilizatin paint and catings transprtatin additives drilling water based architectural paints emulsin plymerizatin paints adhesives lightweighting structural integrity packaging and cnverting pressure sensitive laminating adhesives building and cnstructin engineered wd dry mrtar gypsum jint cmpund fluids muds cementing mrtar additives stimulatin/ prductin prppants yield enhancers

8 industrial specialties verview ~33% f ASH FY 2017 sales we prvide high perfrmance prducts that are typically a small percentage f the ttal cst f the end prduct, but prvide significant value and impact $990MM Adhesives Catings Other Industries cmmn business mdel fcus n premium sub-segments clse cllabratin with custmers utilizing ur reginal technical service and expertise disciplined price and cst management ensure high asset utilizatin fr high asset intensity prduct lines 8

9 industrial specialties business segments adhesives ur key end uses catings ur 3 strengths ther industries 3 main segments packaging & graphics transprtatin $332MM r ~11% f ASH FY 2016 sales building & cnstructin niche player in the $22B specialty frmulated adhesives market with a 3% CAGR ur adhesives prtfli is nimble, capturing a premium in niche applicatins thrughut the market rhelgy surfactants $321MM r ~11% f ASH FY 2016 sales market leader in $2.8B market fr architectural catings additives with a 3% CAGR fam cntrl ur segmented strategy is driving grwth in the premium segment perfrmance specialties (PS) energy (E) cnstructin (C) $337MM r ~11% f ASH FY 2016 sales PS: fcus n unique applicatins with cmplex perfrmance needs E: energy is a much smaller prtin f tday s IS prtfli, with a recent uptick as il prices have recvered C: fcus n premium applicatins and imprving prductivity. Significant cst restructuring and asset fcus will drive success 9 Surce: KNG, IHS, internal estimates

10 ur adhesives business tw business segments structural assembly engineered wd autmtive heavy truck packaging & cnverting pressure sensitive flexible packaging narrw web label 2017 Revenue revenue packaging & cnverting 57% structural assembly 43% predminantly Nrth American (90+%) expanding glbally very diverse prduct line number ne r tw player in ur market segments

11 Isgrip & Isset structural adhesives fr high perfrmance bnding - Isgrip - misture cured urethanes - Isset - water-based emulsin systems

12 Isgrip structural adhesives verview - single cmpnent - 100% slids - misture cured urethane - exterir, structural & lad bearing perfrmance - excellent resistance t water, heat, chemicals and humidity - n frmaldehyde - nn-flammable Versatile prduct line with rbust perfrmance n a wide variety f substrates

13 Isgrip adhesives substrate verview - OSB (Oriented Strand Bard) - Plywd - Particle Bard - Cement Bard - Mineral / Hard Bard - Hneycmb - Fam - Metal (Cated/Primed) - FRP - PVC - ABS - Plylefin's

14 Isgrip 3000 Series CAT range: 30 t 35 min. Press time range: 1 t 2 hrs. Versatile bnd perfrmance n a number f substrates Best chice fr cmpsite materials such as ABS, HDPE, HDPP, FRP, vinyl and Kydex Develped fr architectural panels, pati enclsures, structural insulated panels ICC-ES cde apprval Winter and summer versins available

15 Isgrip 5000 Series CAT 40 min. Press time range: 1hr. t 1 hr. 5 min. Offers the best cmbinatin f clsed assembly time and press time One adhesive fr cated metals and cmpsite materials Wrks great with vinyl Develped fr pati enclsures t enable prductin f panels with larger spans ICC-ES cde apprval Winter and summer versins available

16 Isset value prpsitin - Tw-cmpnent urethane structural adhesives - Higher ambient strength perfrmance - Envirnmental friendly - Faster cure rate - Ability t cure at a wide range f temperature & cnditin - Misture & slvent resistant - High tlerance t the misture cntent f wd - Neutral (wd) clred bnd lines - Extensive cde recgnitin & industry recgnized technical services - Easy clean-up & dispsal

17 Isset technlgy Emulsin Plymer Iscyanate (EPI) - Water based latex resin - Reacted with iscyanate crsslinker parts f resin t 15 parts f crsslinker - Rm temperature curable - Full cure in 24 hurs at rm temperature - Prduct example - WD3-A322 / CX-47 Plyurethane Emulsin Plymer (PEP) - Unique tw cmpnent system - Plyurethane based chemistry - Reacted with water based latex resin (emulsin plymer) - 4 parts plyurethane t 1 part f latex resin - Rm temperature cure - Full cure in 24 hurs at rm temp. - Significant perfrmance advantages - Prduct example ux-100 / wd3-a322 - Isset EPI and PEP cntain n phenl, resrcinl, r frmaldehyde - Neutral adhesive clr t blend in with wd substrate - Rm temperature curing ability ffers the ptential fr energy savings due t reductins in ven temperature

18 Thank yu!