ASHLAND LLC - FORM 8-K - EX-99.1

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8-K - FORM 8-K ASHLAND INC. - ASHLAND LLC	form8k.htm
8-K - PDF VERSION OF 8-K - ASHLAND LLC	form8k.pdf

1 For the fiscal year ended Sept. 30, 2009. Includes pro forma results from the acquired operations of Hercules.

Ashland Consumer
Markets
34%

Ashland Hercules
Water Technologies

23%

Ashland

Aqualon Functional

Ingredients

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

Exhibit 99.1

Ashland
Distribution
36%

Ashland
Consumer
Markets
19%

By commercial unit

21%

Ashland
Aqualon
Functional
Ingredients

11%

2 For the fiscal year ended Sept. 30, 2009. Includes intersegment sales and pro forma results from the acquired
operations of Hercules.

North
America
68%

Latin America/
Other - 4%

Europe

20%

~32 percent of total sales come
from outside North America

Adjusted Sales2: $8.4 billion

Fiscal 2009
Corporate Profile

North
America

40%

Asia
Pacific

17%

Europe

36%

Latin America/

Other - 7%

Coatings
Additives
28%

Energy &
Specialties
Solutions
23%

Regulated
Industries
29%

Sales
by Geography

Sales
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

CMC
16%

HEC
29%

MC
19%

Guar
9%

Other
14%

Stumpwood
Derivatives

Construction
20%

Klucel®

North
America

46%

Asia
Pacific

12%

Europe

35%

Latin America/

Other - 7%

Growth
43%

Base
32%

Sales
by Geography

Sales
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

Process
28%

Utility
29%

Functional
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

Pkg. &

Converting
20%

North
America

57%

Europe

26%

Latin
America/
Other - 7%

Trans-
portation

17%

Ind.
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

Sales
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%

Asia Pacific - 10%

Ashland Performance Materials
A global leader in specialty chemicals

Lubricants

84%

Filters - 2%

Valvoline
Int'l
20%

Do-It-
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

Sales
by Market Channel

Do-It-
For-Me
40%

DIFM:
Installer channel
29%

Specialty/
Other - 2%

DIFM:
Valvoline Instant
Oil Change - 11%

Antifreeze - 5%

Appearance
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

Chemicals

49%

Plastics

39%

Environmental
Services/Other
- 3%

Construction

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

Sales
by Market

Trans-
portation

14%

Paint & Coatings - 11%

Medical - 6%

Marine - 3%

Com-
posites

Chemical Mfg.
- 11%

Retail
Consumer - 8%

Personal
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

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").

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.

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)

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)

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	%

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