Ashland — Nov 6, 2024 release

    Portfolio Optimization Actions Ashland is taking the following actions to offset the impact of portfolio optimization and to further strengthen the company’s core: • Reviewing strategic alternatives for Avoca business line, 3   • Completed a share buyback program of $150 million to offset the annual adjusted earnings per share impact from the divestiture of nutraceuticals and the future exit of Avoca, • Initiation of $30 million restructuring plan to offset impact from the nutraceuticals sale and other portfolio optimization actions, with 50 percent realization in fiscal year 2025 and 50 percent in fiscal year 2026, • Advancing a multi-year manufacturing optimization restructuring plan to improve operational cost and strengthen the competitive position of HEC and VP&D which is expected to generate pre-tax savings of $60 million once fully achieved, including savings of $5 million in fiscal year 2025.   Financial Outlook For fiscal year 2025, Ashland’s outlook is based on the following assumptions: • Continued geopolitical and economic uncertainty results in lower overall growth in most regions, • China’s economy will remain challenged for the fiscal year, especially the property market, • Increased competitive intensity in China and several export markets result in volume growth being partially offset by additional price erosion, • +$45 million in improved first-half absorption when compared to inventory actions in fiscal 2024, • +$20 million in realized cost reduction actions, • generally stable raw material environment, • ($30) million from reduced earnings and stranded costs from our nutraceuticals sale and other portfolio optimization actions, • ($20) million in negative price carryover from fiscal year 2024, • For Avoca, Ashland exited an unprofitable tolling operation and will sell or close the remaining sclareolide business; ($15) million year-over-year EBITDA erosion, and • ($10) million in variable incentive reset.   For fiscal year 2025, Ashland expects sales to be in the range of $1.