![](https://capedge.com/proxy/8-K/0001305014-10-000023/ex991.jpg)
1 For the fiscal year ended Sept. 30, 2009. Includes pro forma results from the acquired operations of Hercules.
Ashland Consumer
Markets
34%
Markets
34%
Ashland Hercules
Water Technologies
Water Technologies
Ashland Hercules
Water Technologies
Water Technologies
23%
23%
Ashland
Ashland
Aqualon Functional
Aqualon Functional
Ingredients
Ingredients
24%
24%
• 56 percent of EBITDA comes from specialty chemicals
• Nearly 25 percent from renewable materials
NYSE Ticker Symbol: | ASH |
Total Employees: | ~14,700 |
Outside North America | 33% |
Number of Countries in Which Ashland Has Sales: | More than 100 |
Adjusted EBITDA1: $854 million
Fiscal 2009
Corporate Profile
Corporate Profile
Exhibit 99.1
![](https://capedge.com/proxy/8-K/0001305014-10-000023/ex992.jpg)
Ashland
Distribution
36%
Distribution
36%
Ashland
Distribution
36%
Distribution
36%
Ashland
Consumer
Markets
19%
Consumer
Markets
19%
By commercial unit
21%
21%
Ashland
Aqualon
Functional
Ingredients
Aqualon
Functional
Ingredients
Ashland
Aqualon
Functional
Ingredients
Aqualon
Functional
Ingredients
11%
11%
2 For the fiscal year ended Sept. 30, 2009. Includes intersegment sales and pro forma results from the acquired
operations of Hercules.
operations of Hercules.
North
America
68%
America
68%
North
America
68%
America
68%
Latin America/
Other - 4%
Other - 4%
Europe
Europe
20%
20%
~32 percent of total sales come
from outside North America
from outside North America
Adjusted Sales2: $8.4 billion
Fiscal 2009
Corporate Profile
Corporate Profile
![](https://capedge.com/proxy/8-K/0001305014-10-000023/ex993.jpg)
7%
7%
North
America
America
North
America
America
40%
40%
Asia
Pacific
Pacific
Asia
Pacific
Pacific
17%
17%
Europe
36%
Latin America/
Other - - 7%
Coatings
Additives
28%
Additives
28%
Coatings
Additives
28%
Additives
28%
Energy &
Specialties
Solutions
23%
Specialties
Solutions
23%
Regulated
Industries
29%
Industries
29%
Regulated
Industries
29%
Industries
29%
Sales
by Geography
by Geography
Sales
by Market
by Market
For the Fiscal Year Ended Sept. 30, 2009
Adjusted Sales: $0.9 billion
Adjusted EBITDA: $203 million
Adjusted EBITDA Margin: 22.0%
Business Overview | |
Customers | • Diversified, global customer base |
Products | • Broad product line based on renewable resources - Water-soluble polymers (cellulose ethers and guar derivatives) |
Markets | • Water-based paints • Paper coatings • Construction • Oilfield (chemicals and drilling muds) • Regulated markets - Personal care - Food - Pharmaceuticals |
Sales
by Product
by Product
CMC
16%
16%
CMC
16%
16%
HEC
29%
29%
HEC
29%
29%
MC
19%
19%
MC
19%
19%
Guar
9%
9%
Guar
9%
9%
Other
14%
14%
Other
14%
14%
Stumpwood
Derivatives
Derivatives
Construction
20%
20%
Construction
20%
20%
Klucel®
6%
6%
![](https://capedge.com/proxy/8-K/0001305014-10-000023/ex994.jpg)
North
America
America
North
America
America
46%
46%
Asia
Pacific
Pacific
Asia
Pacific
Pacific
12%
12%
Europe
35%
Latin America/
Other - - 7%
Growth
43%
43%
Growth
43%
43%
Base
32%
32%
Sales
by Geography
by Geography
Sales
by Market
by Market
For the Fiscal Year Ended Sept. 30, 2009
Adjusted Sales: $1.8 billion
Adjusted EBITDA: $198 million
Adjusted EBITDA Margin: 11.0%
Sales
by Product
by Product
Process
28%
28%
Process
28%
28%
Utility
29%
29%
Utility
29%
29%
Functional
43%
43%
Functional
43%
43%
Business Overview | |
Customers/ Markets | • Growth - Commercial and - Packaging institutional - Pulp - Food and beverage - Tissue/towel - Mining • Base - Chemicals - General manufacturing - Printing and writing • Opportunistic - Lubricants - Marine*/Other - Municipal * Divested 08/31/09 |
Products/ Services | • Process chemicals: microbial and contaminant control, pulping aids, retention aids and defoamers • Utility water treatments • Functional chemicals: sizing/wet strength |
![](https://capedge.com/proxy/8-K/0001305014-10-000023/ex995.jpg)
Pkg. &
Converting
20%
20%
North
America
America
North
America
America
57%
57%
Europe
26%
Latin
America/
Other - - 7%
America/
Other - - 7%
Trans-
portation
portation
Trans-
portation
portation
17%
17%
Ind.
Constr.
Constr.
32%
Business Overview | |
Customers | • Auto manufacturers; foundries; pipe and tank fabricators; packaging and converting; bathware, countertop and window lineal manufacturers; pipe relining contractors; boat builders; wide and narrow web printers |
Products/ Services | • Composites and Adhesives - Unsaturated polyester resins - Vinyl ester resins - Gelcoats - Pressure-sensitive adhesives - Structural adhesives - Specialty resins • Casting Solutions - Foundry binder resins - Chemicals - Sleeves and filters - Design services |
Markets | • Construction, packaging and con- verting, transportation, and marine |
Sales
by Geography
by Geography
Sales
by Market
by Market
For the Fiscal Year Ended Sept. 30, 2009
Sales: $1.1 billion
Adjusted EBITDA: $76 million
Adjusted EBITDA Margin: 6.9%
Infrastructure
12%
12%
Asia Pacific - 10%
Ashland Performance Materials
A global leader in specialty chemicals
A global leader in specialty chemicals
![](https://capedge.com/proxy/8-K/0001305014-10-000023/ex996.jpg)
Lubricants
84%
Filters - - 2%
Valvoline
Int'l
20%
Int'l
20%
Valvoline
Int'l
20%
Int'l
20%
Do-It-
Yourself
Yourself
38%
Business Overview | |
Customers | • Retail auto parts stores and mass merchandisers who sell to consumers; installers, such as car dealers and quick lubes; distributors |
Products/ Services | • Valvoline® lubricants and automotive chemicals • MaxLife® lubricants for high-mileage vehicles • SynPower® synthetic motor oil • Eagle One® and Car Brite® appearance products • Zerex® antifreeze • Valvoline Instant Oil Change® service |
Market Channels | • Do-It-Yourself (DIY) • Do-It-For-Me (DIFM) • Valvoline International |
Sales
by Product Line
by Product Line
Sales
by Market Channel
by Market Channel
Do-It-
For-Me
40%
For-Me
40%
DIFM:
Installer channel
29%
Installer channel
29%
Specialty/
Other - - 2%
Other - - 2%
DIFM:
Valvoline Instant
Oil Change - 11%
Valvoline Instant
Oil Change - 11%
Antifreeze - - 5%
Appearance
products - - 2%
products - - 2%
Chemicals - - 7%
For the Fiscal Year Ended Sept. 30, 2009
Sales: $1.7 billion
Adjusted EBITDA: $288 million
Adjusted EBITDA Margin: 17.5%
Ashland Consumer Markets: A leading worldwide
marketer of premium-branded automotive lubricants and chemicals
marketer of premium-branded automotive lubricants and chemicals
![](https://capedge.com/proxy/8-K/0001305014-10-000023/ex997.jpg)
Chemicals
Chemicals
49%
49%
Plastics
39%
Environmental
Services/Other
- 3%
Services/Other
- 3%
Construction
Construction
23%
23%
Other
16%
Business Overview | |
Customers | • Diversified customer base in North America and Europe |
Products/ Services | • More than 28,000 packaged and bulk chemicals, solvents, plastics and additives • Comprehensive, hazardous and nonhazardous waste- management solutions in North America |
Markets | • Construction • Transportation • Chemical manufacturing • Paint and coatings • Retail consumer • Personal care • Medical • Marine |
Sales
by Product
Line
by Product
Line
Sales
by Market
by Market
Trans-
portation
portation
14%
Paint & Coatings - 11%
Medical - - 6%
Marine - - 3%
Com-
posites
posites
9%
Chemical Mfg.
- 11%
- 11%
Retail
Consumer - - 8%
Consumer - - 8%
Personal
Care - - 8%
Care - - 8%
For the Fiscal Year Ended Sept. 30, 2009
Sales: $3.0 billion
Adjusted EBITDA: $84 million
Adjusted EBITDA Margin: 2.8%
Ashland Distribution
A leading North American chemicals and plastics distributor
A leading North American chemicals and plastics distributor
![](https://capedge.com/proxy/8-K/0001305014-10-000023/ex998.jpg)
Regulation G: Adjusted EBITDA
The information presented herein regarding adjusted pro forma results does not conform to generally
accepted accounting principles (GAAP) and should not be construed as an alternative to the reported
results determined in accordance with GAAP. Management has included this non-GAAP information
to assist in understanding the operating performance of the company and its 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 has been reconciled with reported
GAAP results. Certain prior period adjusted pro forma results could not be reconciled to previous
GAAP statements filed by Ashland since it relied upon pro forma information from Hercules
Incorporated ("Hercules").
accepted accounting principles (GAAP) and should not be construed as an alternative to the reported
results determined in accordance with GAAP. Management has included this non-GAAP information
to assist in understanding the operating performance of the company and its 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 has been reconciled with reported
GAAP results. Certain prior period adjusted pro forma results could not be reconciled to previous
GAAP statements filed by Ashland since it relied upon pro forma information from Hercules
Incorporated ("Hercules").
The unaudited adjusted pro forma results are presented for informational purposes only and do not
reflect future events that may occur or any operating efficiencies or inefficiencies that may result
from the acquisition of Hercules. Certain significant and identifiable cost allocation, reporting and
accounting policy differences have been reflected in these adjusted pro forma results. However,
these adjusted pro forma results do not purport to identify all these differences. Therefore, the
unaudited adjusted pro forma results are not necessarily indicative of results that would have been
achieved had the businesses been combined during the period presented or the results that Ashland
will experience in the future. In addition, the preparation of financial statements in conformity with
GAAP requires management to make certain estimates and assumptions. These estimates and
assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of sales and expenses
during the reporting period. These estimates and assumptions can be significantly different
depending on changes to conform to Ashland policy.
reflect future events that may occur or any operating efficiencies or inefficiencies that may result
from the acquisition of Hercules. Certain significant and identifiable cost allocation, reporting and
accounting policy differences have been reflected in these adjusted pro forma results. However,
these adjusted pro forma results do not purport to identify all these differences. Therefore, the
unaudited adjusted pro forma results are not necessarily indicative of results that would have been
achieved had the businesses been combined during the period presented or the results that Ashland
will experience in the future. In addition, the preparation of financial statements in conformity with
GAAP requires management to make certain estimates and assumptions. These estimates and
assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of sales and expenses
during the reporting period. These estimates and assumptions can be significantly different
depending on changes to conform to Ashland policy.
Ashland Inc. and Consolidated Subsidiaries
Reconciliation of Fiscal Year 2009 Non-GAAP Data
($ millions, except percentages)
Ashland Aqualon Functional Ingredients | Ashland FY 2009 GAAP Results | Pre-Acquisition Period: Hercules Oct. 1 - Nov. 13, 2008 | Key Items | Adjusted | ||||||||||||
Sales | 812 | 112 | 924 | |||||||||||||
Cost of sales | 595 | 77 | (30 | ) | 642 | |||||||||||
Selling, general and administrative expenses (includes R&D) | 181 | 20 | (15 | ) | 186 | |||||||||||
Equity and other income | - | - | - | - | ||||||||||||
Operating income | 36 | 15 | 45 | 96 | ||||||||||||
Operating income as a percent of sales | 4.4 | % | 13.4 | % | 10.4 | % | ||||||||||
Gross profit as a percent of sales | 26.7 | % | 31.3 | % | 30.5 | % | ||||||||||
D&A | 106 | 6 | (5 | ) | 107 | |||||||||||
EBITDA | 142 | 21 | 40 | 203 | ||||||||||||
EBITDA as a percent of sales | 17.5 | % | 18.8 | % | 22.0 | % | ||||||||||
Ashland Hercules Water Technologies | Ashland FY 2009 GAAP Results | Pre-Acquisition Period: Hercules Oct. 1 - Nov. 13, 2008 | Key Items | Adjusted | ||||||||||||
Sales | 1,652 | 155 | 1,807 | |||||||||||||
Cost of sales | 1,092 | 116 | (7 | ) | 1,201 | |||||||||||
Selling, general and administrative expenses (includes R&D) | 484 | 34 | (9 | ) | 509 | |||||||||||
Equity and other income | 2 | - | - | 2 | ||||||||||||
Operating income | 78 | 5 | 16 | 99 | ||||||||||||
Operating income as a percent of sales | 4.7 | % | 3.2 | % | 5.5 | % | ||||||||||
Gross profit as a percent of sales | 33.9 | % | 25.2 | % | 33.5 | % | ||||||||||
D&A | 99 | 5 | (5 | ) | 99 | |||||||||||
EBITDA | 177 | 10 | 11 | 198 | ||||||||||||
EBITDA as a percent of sales | 10.7 | % | 6.5 | % | 11.0 | % |
(continued next page)
![](https://capedge.com/proxy/8-K/0001305014-10-000023/letterlogo.jpg)
Ashland Inc. and Consolidated Subsidiaries
Reconciliation of Fiscal Year 2009 Non-GAAP Data (cont. from prior page)
($ millions, except percentages)
Ashland Performance Materials | Ashland FY 2009 GAAP Results | Pre-Acquisition Period: Hercules Oct. 1 - Nov. 13, 2008 | Key Items | Adjusted | ||||||||||||
Sales | 1,106 | 1,106 | ||||||||||||||
Cost of sales | 918 | (17 | ) | 901 | ||||||||||||
Selling, general and administrative expenses (includes R&D) | 199 | (6 | ) | 193 | ||||||||||||
Equity and other income | 12 | 3 | 15 | |||||||||||||
Operating income | 1 | 26 | 27 | |||||||||||||
Operating income as a percent of sales | 0.1 | % | 2.4 | % | ||||||||||||
Gross profit as a percent of sales | 17.0 | % | 18.5 | % | ||||||||||||
D&A | 63 | (14 | ) | 49 | ||||||||||||
EBITDA | 64 | 12 | 76 | |||||||||||||
EBITDA as a percent of sales | 5.8 | % | 6.9 | % | ||||||||||||
Ashland Consumer Markets | Ashland FY 2009 GAAP Results | Pre-Acquisition Period: Hercules Oct. 1 - Nov. 13, 2008 | Key Items | Adjusted | ||||||||||||
Sales | 1,650 | 1,650 | ||||||||||||||
Cost of sales | 1,122 | - | 1,122 | |||||||||||||
Selling, general and administrative expenses (includes R&D) | 292 | - | 292 | |||||||||||||
Equity and other income | 16 | - | 16 | |||||||||||||
Operating income | 252 | - | 252 | |||||||||||||
Operating income as a percent of sales | 15.3 | % | 15.3 | % | ||||||||||||
Gross profit as a percent of sales | 32.0 | % | 32.0 | % | ||||||||||||
D&A | 36 | - | 36 | |||||||||||||
EBITDA | 288 | - | 288 | |||||||||||||
EBITDA as a percent of sales | 17.5 | % | 17.5 | % |
(continued next page)
![](https://capedge.com/proxy/8-K/0001305014-10-000023/letterlogo.jpg)
Ashland Inc. and Consolidated Subsidiaries
Reconciliation of Fiscal Year 2009 Non-GAAP Data (cont. from prior page)
($ millions, except percentages)
Ashland Distribution | Ashland FY 2009 GAAP Results | Pre-Acquisition Period: Hercules Oct. 1 - Nov. 13, 2008 | Key Items | Adjusted | ||||||||||||
Sales | 3,020 | 3,020 | ||||||||||||||
Cost of sales | 2,719 | - | 2,719 | |||||||||||||
Selling, general and administrative expenses (includes R&D) | 253 | (4 | ) | 249 | ||||||||||||
Equity and other income | 4 | - | 4 | |||||||||||||
Operating income | 52 | 4 | 56 | |||||||||||||
Operating income as a percent of sales | 1.7 | % | 1.9 | % | ||||||||||||
Gross profit as a percent of sales | 10.0 | % | 10.0 | % | ||||||||||||
D&A | 28 | - | 28 | |||||||||||||
EBITDA | 80 | 4 | 84 | |||||||||||||
EBITDA as a percent of sales | 2.6 | % | 2.8 | % | ||||||||||||
Intersegment Sales/Unallocated and Other | Ashland FY 2009 GAAP Results | Pre-Acquisition Period: Hercules Oct. 1 - Nov. 13, 2008 | Key Items | Adjusted | ||||||||||||
Sales | (134 | ) | (134 | ) | ||||||||||||
Cost of sales | (129 | ) | (2 | ) | (131 | ) | ||||||||||
Selling, general and administrative expenses (includes R&D) | 28 | (25 | ) | 3 | ||||||||||||
Equity and other income | 4 | 4 | - | 8 | ||||||||||||
Operating income | (29 | ) | 4 | 27 | 2 | |||||||||||
D&A | 7 | (4 | ) | 3 | ||||||||||||
EBITDA | (22 | ) | 4 | 23 | 5 |
Ashland Consolidated | Ashland FY 2009 GAAP Results | Pre-Acquisition Period: Hercules Oct. 1 - Nov. 13, 2008 | Key Items | Adjusted | ||||||||||||
Sales | 8,106 | 267 | - | 8,373 | ||||||||||||
Cost of sales | 6,317 | 193 | (56 | ) | 6,454 | |||||||||||
Selling, general and administrative expenses (includes R&D) | 1,437 | 54 | (59 | ) | 1,432 | |||||||||||
Equity and other income | 38 | 4 | 3 | 45 | ||||||||||||
Operating income | 390 | 24 | 118 | 532 | ||||||||||||
Operating income as a percent of sales | 4.8 | % | 9.0 | % | 6.4 | % | ||||||||||
Gross profit as a percent of sales | 22.1 | % | 27.7 | % | 22.9 | % | ||||||||||
D&A | 339 | 11 | (28 | ) | 322 | |||||||||||
EBITDA | 729 | 35 | 90 | 854 | ||||||||||||
EBITDA as a percent of sales | 9.0 | % | 13.1 | % | 10.2 | % |
![](https://capedge.com/proxy/8-K/0001305014-10-000023/letterlogo.jpg)