Ashland Inc. (ASH) 2017 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Ashland Global's Holdings Fourth Quarter Earnings Call. (Operator Instructions) As a reminder, this conference call is being recorded.

各位女士、各位先生，早安，歡迎參加 Ashland Global Holdings 第四季財報電話會議。(接線員指示) 提醒各位，本次電話會議將被錄音。

I would now like to turn the conference over to Mr. Seth Mrozek, Director of Investor Relations.

現在我想把會議交給投資人關係總監 Seth Mrozek 先生。

Thank you, Amanda. Good morning, everyone, and welcome to Ashland's Fourth Quarter Fiscal 2017 Earnings Conference Call and Webcast. My name is Seth Mrozek, Director, Ashland Investor Relations. Joining me on the call today are Bill Wulfsohn, Ashland's Chairman and Chief Executive Officer; and Kevin Willis, Senior Vice President and Chief Financial Officer;

謝謝你，Amanda。各位早安，歡迎參加 Ashland 2017 會計年度第四季財報電話會議與網路直播。我是 Seth Mrozek，Ashland 投資人關係總監。今天與我一同參與電話會議的有：Ashland 董事長兼執行長 Bill Wulfsohn，以及資深副總裁兼財務長 Kevin Willis；

We released preliminary results for the quarter ended September 30, 2017, shortly after 5:00 p.m. Eastern Time yesterday, November 6. Additionally, we posted slides to our website, ashland.com, under the Investor Relations section and have furnished each of these documents to the SEC in a form 8-K.

我們已於昨日 11 月 6 日東部時間下午 5 點過後不久，發布截至 2017 年 9 月 30 日止季度的初步業績。此外，我們也在網站 ashland.com 的投資人關係專區上傳了簡報，並已以 8-K 表格向美國證券交易委員會（SEC）提交上述各項文件。

As a reminder, some of the matters discussed today and included in our presentations may include forward-looking statements as such term is defined under U.S. securities law. We believe any such statements are based on reasonable assumptions, but cannot assure that such expectations will be achieved.

提醒各位，今天討論的部分事項以及我們簡報中所包含的內容，可能包含依美國證券法所定義的前瞻性陳述。我們相信任何此類陳述係基於合理假設，但無法保證這些預期將會實現。

Please also note that we will be discussing adjusted results during this call. We believe this enhances understanding of our performance by more accurately reflecting our ongoing business.

也請注意，我們將在本次電話會議中討論調整後（adjusted）結果。我們相信這能更準確反映我們持續經營的業務，從而增進對我們績效的理解。

One other note before I turn the call over to Bill. Some of you may have noticed the different approach we are taking to our quarterly earnings materials. Based on feedback from our shareholders and analysts, we have redesigned these materials with the intent of providing clearer, more concise, more consistent information about our results and business outlook. Yesterday's earnings release and accompanying slides reflect these changes, and we believe that it achieves the goal of enhancing the clarity and content of the quarterly package.

在我把電話交給 Bill 之前，還有一點說明。各位可能已注意到，我們在季度財報資料上採取了不同的呈現方式。根據股東與分析師的回饋，我們重新設計了這些資料，旨在就我們的業績與業務展望提供更清楚、更精簡且更一致的資訊。昨日的財報新聞稿與隨附簡報反映了這些變更，我們相信已達成提升季度資料包清晰度與內容品質的目標。

Based on comparisons to extensive benchmarking we conducted over the past few months, we also believe this approach is more consistent with industry best practices. As always, we welcome your feedback.

根據我們過去幾個月所進行的大量同業標竿比較，我們也相信此作法更符合產業最佳實務。一如既往，我們歡迎各位提供意見回饋。

And with that, I will turn the call over to Bill.

接下來，我把電話交給 Bill。

Thank you, Seth, and good morning, everyone. As Seth referenced, we've listened to investor feedback and completed extensive benchmarking in an attempt to make our earnings results clearer and more concise, and we do look forward to your feedback.

謝謝你，Seth，各位早安。如 Seth 所提，我們聽取投資人回饋並完成了廣泛的標竿比較，嘗試讓我們的財報結果更清楚、更精簡，也期待各位的回饋。

Moving to our results in the fourth quarter. We saw tremendous progress on multiple fronts. Within Specialty Ingredients, Pharmachem delivered per our expectations, and we have now identified synergies which exceed our original $10 million target. We grew in personal care, pharma and other specialties end market. We also sharpened our focus on asset utilization, improving our mix, which helped us to generate 5% organic improvement in gross profit.

接著談第四季的業績。我們在多個面向都看到顯著進展。在特用成分（Specialty Ingredients）方面，Pharmachem 的表現符合我們的預期，而且我們目前已辨識出的綜效超過原先 1,000 萬美元的目標。我們在個人護理、製藥及其他特用終端市場實現成長。我們也更聚焦於資產使用效率、改善產品組合，協助我們帶動毛利達成 5% 的有機成長。

These gains were essential as raw material prices increased more than expected and demand in coatings and adhesives was flat. The good news is we're making solid progress in raising price. We also saw adhesives and coatings volume rebound in October and expect sales demand to grow in the upcoming quarters.

在原物料價格上漲幅度高於預期、且塗料與黏著劑需求持平的情況下，這些成長至關重要。好消息是，我們在調漲價格方面正取得扎實進展。我們也看到黏著劑與塗料的銷量在 10 月回升，並預期未來幾季的銷售需求將成長。

Put it all together, and ASI increased revenue by 12% or $66 million, and grew EBITDA by 12% or $15 million. The year-over-year adjusted EBITDA gains were driven both by the additional Pharmachem as well as by year-over-year increases in the balance of the base ASI business.

綜合來看，ASI 營收成長 12%（或 6,600 萬美元），EBITDA 成長 12%（或 1,500 萬美元）。調整後 EBITDA 的年增，既來自新增的 Pharmachem，也來自 ASI 基礎業務其餘部分的年增表現。

In Composites, we had outstanding results. The team did a great job of generating sales and earnings growth. Sales grew 35% and adjusted EBITDA climbed [64%]. Adjusted EBITDA margin gained 190 basis points. These results were driven by 3 main levers. The first was strong sales increases in all regions, which of course drove better asset utilization. The second is contributions from the recently acquired plant in France, which is exceeding our original expectations. And the third is continued focus on improved pricing and margins by providing new products and value-added solutions.

在複合材料（Composites）方面，我們取得了非常出色的成果。團隊在推動銷售與獲利成長方面表現優異。銷售成長 35%，調整後 EBITDA 攀升 [64%]。調整後 EBITDA 利潤率提升 190 個基點。這些成果主要由 3 個關鍵驅動因素帶動。第一是所有地區的強勁銷售成長，當然也帶動更佳的資產使用效率。第二是近期收購的法國工廠所帶來的貢獻，且表現超出我們原先預期。第三是持續聚焦於透過提供新產品與加值解決方案來改善定價與利潤率。

And I want to make a comment here because I recently met with 2 of Composites' largest customers, and both are great companies that themselves are -- they focus on innovation. And during those meetings, both expressed that the technology, the partnership and service provided by Ashland Composites team is highly valued by them, and as such, they don't think of us or treat us as a commodity supplier.

我在此想補充一點，因為我最近與複合材料部門兩家最大客戶會面，兩者都是非常優秀的公司，且本身也—他們非常重視創新。在會談中，兩位客戶都表示 Ashland 複合材料團隊所提供的技術、合作夥伴關係與服務對他們而言極具價值，因此他們並不把我們視為、也不以大宗商品供應商的方式對待我們。

Finally, moving to I&S. It's been a long time coming, but I'm pleased to report that year-over-year sales grew by 5% and adjusted EBITDA was up by $7 million. We have implemented 2 significant price increases over the past several months. These increase totaled $0.20 per pound or roughly a 20% increase.

最後談到 I&S。這一路走來不容易，但我很高興報告，年對年銷售成長 5%，調整後 EBITDA 增加 700 萬美元。過去幾個月我們已實施 2 次重大漲價。這兩次漲價合計每磅上調 0.20 美元，約等於 20% 的漲幅。

So in the aggregate, sales and earnings were up year-over-year in all 3 reportable segments in fiscal year '17 Q4, and that's true even after excluding the impact of M&A and positive foreign exchange in the quarter. Thus, as I reflect on the entire fiscal year '17, I believe it was a transitional year in which we've made great progress.

因此，整體而言，在 2017 會計年度第四季，三個可報告部門的銷售與獲利皆較去年同期成長；即使排除本季併購（M&A）影響以及有利匯率因素後，結論仍然成立。因此，回顧整個 2017 會計年度，我認為這是一個轉型之年，我們已取得重大進展。

We completed the separation of Valvoline, which was a defining moment in Ashland's transformation. We completed the acquisition of Pharmachem, which was immediately accretive and expands Ashland into important areas of fixatives and nutraceuticals. We completed the acquisition of Composites' plant in France, which was also immediately accretive. The ASI base business drove to offset $25 million of raw material inflation through pricing and asset utilization actions. Composites overcame $50 million of raw material inflation by delivering price and volume, resulting in full year earnings growth. And I&S returned to year-over-year profit growth in the second half of the fiscal year.

我們完成了 Valvoline 的分拆，這是 Ashland 轉型過程中的關鍵里程碑。我們完成了 Pharmachem 的收購，該收購立即具增益性（accretive），並將 Ashland 擴展至固著劑（fixatives）與營養保健品（nutraceuticals）等重要領域。我們完成了複合材料法國工廠的收購，同樣也立即具增益性。ASI 基礎業務透過定價與資產使用效率的措施，抵銷了 2,500 萬美元的原物料通膨。複合材料透過價格與銷量表現，克服了 5,000 萬美元的原物料通膨，帶動全年獲利成長。而 I&S 在會計年度下半年恢復年對年獲利成長。

I will now turn the call over to Kevin, who will share some important financial details.

接下來我把電話交給 Kevin，由他分享一些重要的財務細節。

Thank you, Bill, and good morning, everyone. Adjusted EBITDA in the quarter was $161 million compared to $143 million in the year-ago period. As a reminder, the prior-year period includes $14 million of pension income and $5 million of corporate costs related to Valvoline.

謝謝你，Bill，各位早安。本季調整後 EBITDA 為 1.61 億美元，去年同期為 1.43 億美元。提醒各位，去年同期包含 1,400 萬美元的退休金收益，以及與 Valvoline 相關的 500 萬美元公司成本。

In the quarter, we reported a loss from continuing operations of $0.84 per diluted share. On an adjusted basis, we reported income from continuing operations of $0.78 per diluted share compared to $0.48 in the prior year.

本季我們持續經營業務的虧損為每股稀釋後 0.84 美元。以調整後基礎計算，我們持續經營業務的每股稀釋後盈餘為 0.78 美元，去年同期為 0.48 美元。

Our effective tax rate for the fourth quarter after adjusting for key items was 6%, which was lower than expected, due primarily to income mix.

第四季在就關鍵項目進行調整後，我們的有效稅率為 6%，低於預期，主要原因是所得組合（income mix）。

We currently expect the effective tax rate for the first quarter of 2018 to be approximately 10%. For fiscal 2018, we expect an annual effective tax rate in the range of 8% to 13%.

目前我們預期 2018 年第一季的有效稅率約為 10%。就 2018 會計年度而言，我們預期全年有效稅率落在 8% 至 13% 的區間。

Capital expenditures were $73 million during the quarter compared to $82 million in the prior-year period.

本季資本支出為 7,300 萬美元，去年同期為 8,200 萬美元。

Free cash flow during the fourth quarter was $67 million compared to $54 million in the prior year. For the full fiscal 2017, free cash flow was $56 million, including $80 million of onetime separation and severance-related payments.

第四季自由現金流為 6,700 萬美元，較前一年度的 5,400 萬美元增加。2017 會計年度全年自由現金流為 5,600 萬美元，其中包含 8,000 萬美元的一次性分拆及與資遣相關的付款。

For the full year, Ashland's adjusted EPS was $2.44 compared to $2.25 in fiscal 2016. These results will serve as the baseline for the fiscal year 2018 to 2021 EPS growth target that we announced at our Investor Day in early May.

全年而言，Ashland 的調整後每股盈餘（EPS）為 2.44 美元，較 2016 會計年度的 2.25 美元提高。這些結果將作為我們在 5 月初投資人日所宣布之 2018 至 2021 會計年度 EPS 成長目標的基準。

It's appropriate at this point to briefly reflect on fiscal '17. As Bill mentioned, we executed on a lot of positive actions. And as you may recall, with the execution of the Valvoline transaction, not only did we fully separate Valvoline from Ashland, but the bulk of Ashland's pension assets and liabilities moved to Valvoline, significantly reducing this key risk factor for Ashland.

此時適合簡要回顧 2017 會計年度。如 Bill 所提到，我們執行了許多正向行動。而且如各位所記得，隨著 Valvoline 交易的執行，我們不僅將 Valvoline 與 Ashland 完全分拆，Ashland 的大部分退休金資產與負債也移轉至 Valvoline，顯著降低了 Ashland 的這項關鍵風險因素。

As you saw in the outlook summary we released last night, we have issued aggressive but achievable EBITDA, EPS and free cash flow targets for fiscal year 2018. We have a great deal of confidence that Ashland today has the people, processes and tools in place to achieve these objectives to which the entire team is being held accountable.

如各位在我們昨晚發布的展望摘要中所見，我們已為 2018 會計年度提出積極但可達成的 EBITDA、EPS 與自由現金流目標。我們非常有信心，今日的 Ashland 已具備達成這些目標所需的人才、流程與工具，而整個團隊也將對此負起責任。

Specifically, full year EBITDA growth for Specialty Ingredients, excluding the impact from acquisitions, divestitures and currency, is expected to be in the mid- to high single-digit range throughout the year, beginning in Q1.

具體而言，Specialty Ingredients 全年 EBITDA 成長（排除併購、處分及匯率影響）預期自第一季開始，全年將落在中至高個位數百分比區間。

Our EPS outlook for Q1 of $0.35 to $0.45 per share presumes the mid- to high-single digit ASI EBITDA growth I just mentioned, a tax rate of approximately 10% and normal seasonality across all our businesses.

我們對第一季 EPS 的展望為每股 0.35 至 0.45 美元，係假設我剛提到的 ASI EBITDA 中至高個位數成長、約 10% 的稅率，以及我們所有業務的正常季節性。

Just a word about capital allocation. As we've indicated, our primary use of cash for the next couple of years will be debt reduction to reach our leverage target of gross debt at 3.5x EBITDA. To be clear, this does not preclude allocating capital to bolt-on acquisitions and share repurchases as we have done in the past.

簡單談一下資本配置。如我們所指出，未來幾年現金的主要用途將是降低負債，以達到我們的槓桿目標：總負債為 EBITDA 的 3.5 倍。需要說明的是，這並不排除如同過去一樣，將資本配置於補強型併購與庫藏股回購。

Now I will turn the call back over to Bill.

現在我把電話會議交回給 Bill。

All right. Thank you, Kevin. It seems like a long time ago, but we started this fiscal year working to complete the full Valvoline separation. By January, much of this work was behind us, and that was a crucial turning point for Ashland as we shifted the fundamental focus of the entire organization to put in place the changes needed to fulfill our vision of becoming the premier specialty chemical company.

好的。謝謝你，Kevin。感覺像是很久以前，但我們在本會計年度一開始便著手完成 Valvoline 的全面分拆。到了 1 月，這項工作多數已在我們身後，這是 Ashland 的關鍵轉折點，因為我們將整個組織的根本重心轉向推動必要變革，以實現我們成為頂尖特用化學品公司的願景。

In early May, we hosted our Investor Day in New York. At that time, we presented aggressive new financial targets for fiscal year 2018 through fiscal year 2021. Those targets are to grow adjusted EPS by at least 15% in each year of the period, improve ASI's adjusted EBITDA margins to above 25% and generate more than $1 billion of free cash flow.

5 月初，我們在紐約舉辦了投資人日。當時，我們提出了 2018 會計年度至 2021 會計年度期間積極的新財務目標。這些目標包括：在該期間每一年調整後 EPS 至少成長 15%，將 ASI 的調整後 EBITDA 利潤率提升至 25% 以上，並創造超過 10 億美元的自由現金流。

We shared with you the 7 core levers which we are working to drive these targeted results. Since that Investor Day, we have established specific metrics, ownership, targets, action plans and the cadence of review for each of the core levers. As a result of this work, we are confident that we have the ability to deliver significantly greater EPS growth in fiscal year 2018 than the 15% conveyed during our Investor Day.

我們與各位分享了 7 項核心槓桿，正是我們用以推動達成這些目標成果的重點。自投資人日以來，我們已為每一項核心槓桿建立具體衡量指標、責任歸屬、目標、行動計畫，以及檢視節奏。基於這些工作，我們有信心在 2018 會計年度交出顯著高於投資人日所傳達之 15% 的 EPS 成長。

Okay. So what has changed and why are we so confident that we can deliver? Well, let's begin with organic growth and most specifically in ASI, where we're targeting 2.5% to 3.5% annual sales growth versus the 2.5% that the business grew in fiscal year '17. To accelerate profitable growth, we have first focused on improving our ability to deliver meaningful innovations to our customers. To do this, we conducted a comprehensive review of our past product launches to determine what worked and what didn't. And as a result, we made 3 important changes to our new product development efforts.

好。那麼，改變了什麼？為何我們如此有信心能夠達成？我們先從有機成長談起，尤其是 ASI；我們的目標是年銷售成長 2.5% 至 3.5%，相較於該業務在 2017 會計年度的 2.5% 成長。為了加速獲利性成長，我們首先聚焦於提升為客戶提供具實質意義創新的能力。為此，我們對過去的產品上市進行全面檢視，以判斷哪些有效、哪些無效。因此，我們對新產品開發工作做出 3 項重要調整。

The first, we concentrated and are concentrating more of our technical resources on what we call TSR projects, which are customer-driven and have shorter timelines, resulting in quicker wins.

第一，我們將、並且正在將更多技術資源集中於我們所稱的 TSR 專案；這些專案由客戶驅動、時程較短，因此能更快取得成果。

Second, we moved the project prioritization process to be led by our commercial leaders. They now own the pipeline of projects and are accountable for their impact.

第二，我們將專案優先排序流程改由商務領導團隊主導。他們現在擁有專案管線，並對其影響負責。

And third, we established what we call stage 6 new product reviews. These sessions more closely track the commercialization process in the early months following a product launch to ensure they deliver on their full potential.

第三，我們建立了所謂的第 6 階段新產品檢討。這些會議在產品上市後的前幾個月更密切追蹤商業化流程，以確保其充分發揮全部潛力。

In addition, to accelerate sales growth, we took 2 important steps to improve our sales force effectiveness. The first was to put in place a system to enable our sales team to see the true profit contribution from an individual sale. With this system in place, the sales team can better understand the economics of selling excess capacity, and conversely, when they look to upgrade the mix on constrained equipment, understand the implications as well.

此外，為了加速銷售成長，我們採取了 2 項重要措施以提升銷售團隊效能。第一是建立一套系統，使銷售團隊能看見單筆銷售的真實獲利貢獻。有了這套系統，銷售團隊能更了解銷售閒置產能的經濟效益；反之，當他們希望在產能受限的設備上提升產品組合時，也能理解其影響。

The second key change was to our sales incentive system. We have established clearer targets, individual accountability and incentives for individuals to drive incremental commercial contribution.

第二項關鍵改變是我們的銷售獎酬制度。我們建立了更清楚的目標、個人責任歸屬，以及鼓勵個人推動增量商業貢獻的獎酬。

Finally, to accelerate our sales and mix improvement efforts, we have focused our capital to insure capacity needed to grow in our highest-contributing markets. Pharma is a great example. To enable growth in China, we established local manufacturing capabilities in Nanjing, and that enables us to provide a broader range of Ashland's excipients to local customers. We also recently completed the Klucel expansion in Hopewell, Virginia, and we dedicated more resources to successfully debottleneck our production of Benecel and CMC. As a result, the pharma business grew by 2% in the quarter versus a year ago. And more importantly, we are now unconstrained in all of our pharma product lines, and thus expect to return to historical growth rates going forward.

最後，為了加速我們在銷售與產品組合改善方面的努力，我們將資本聚焦於確保在貢獻度最高的市場具備成長所需產能。製藥就是很好的例子。為了支持在中國的成長，我們在南京建立了在地製造能力，使我們能向當地客戶提供更廣泛的 Ashland 賦形劑產品。我們也近期完成了位於維吉尼亞州 Hopewell 的 Klucel 擴產，並投入更多資源以成功排除 Benecel 與 CMC 產線的瓶頸。因此，本季製藥業務較去年同期成長 2%。更重要的是，我們目前在所有製藥產品線上都不再受產能限制，因此預期未來將回到歷史成長率。

Beyond accelerating sales growth, we are driving key initiatives profiled during our Investor Day to improve our operating margins. Our first priority in this area was, and continues to be, to raise price, especially in these inflationary times. Accordingly, we have improved our pricing governance, we have leveraged our global organization and SAP system to quickly identify where we need to increase prices and we've established tracking mechanisms to drive better accountability.

除了加速銷售成長之外，我們也在推動投資人日所介紹的關鍵計畫，以提升營業利潤率。我們在此領域的首要任務過去是、現在仍然是提高價格，尤其在這樣的通膨環境下。因此，我們改善了定價治理，運用全球組織與 SAP 系統快速辨識需要調漲價格之處，並建立追蹤機制以強化責任歸屬。

Improved asset utilization is another key initiative we are focused on to improving profit margins. As you will recall at our Investor Day, we have a combination of asset-light and asset-heavy product lines. Including depreciation, we spend approximately $800 million of fixed manufacturing overhead a year, 50% of which comes from just 5 plants. On an Ashland-wide basis, reducing our cost of production per unit by simply $0.01 yields approximately $17 million of incremental EBITDA.

提升資產使用效率是我們聚焦以改善利潤率的另一項關鍵計畫。如各位在投資人日所記得，我們同時擁有輕資產與重資產的產品線組合。包含折舊在內，我們每年約有 8 億美元的固定製造間接費用，其中 50% 來自僅 5 座工廠。以 Ashland 全公司而言，若僅將單位生產成本降低 0.01 美元，即可帶來約 1,700 萬美元的增量 EBITDA。

There are 2 main paths we are pursuing to drive better asset utilization. The first is to reduce plant spend. And to that end, we have expanded our use of Lean Six Sigma tools to offset inflation; develop plans to reduce the number, length and cost of plant maintenance turnarounds while maintaining our steadfast commitment to safe and reliable operations. We also took action to close or consolidate some of our manufacturing footprint, which will benefit fiscal year '18 by approximately $4 million. And in addition, we continue to assess our manufacturing footprint to identify projects that we could begin implementing this year and could have a meaningful impact in fiscal year 2019 and beyond. And this is important as our goal is to ensure we have 15%-plus EPS growth in fiscal year '19 and beyond.

我們正在推動更佳資產利用率，主要有兩條路徑。第一是降低工廠支出。為此，我們擴大運用精實六標準差（Lean Six Sigma）工具以抵銷通膨；在維持我們對安全且可靠營運之堅定承諾的同時，制定計畫以降低工廠歲修（maintenance turnarounds）的次數、工期與成本。我們也採取行動關閉或整併部分製造據點，預計在2018會計年度帶來約400萬美元的效益。此外，我們持續評估製造版圖，以辨識可於今年開始推動、並可在2019會計年度及之後產生實質影響的專案。這點很重要，因為我們的目標是確保在2019會計年度及之後達成15%以上的每股盈餘（EPS）成長。

In addition to reducing plant spend, our production cost can also be improved by better utilizing our existing infrastructure. And to achieve these gains, we first and foremost must deliver on the growth targets in our fiscal year '18 budget.

除了降低工廠支出之外，透過更有效運用既有基礎設施，我們也能改善生產成本。為了達成這些改善，首要之務是必須達成我們2018會計年度預算中的成長目標。

And secondly, we continue to work aggressively to de-toll outsourced products. Now in this area, Pharmachem and Ashland both complement each other. We are targeting de-tolling cost reductions of about $2 million in fiscal year '18, and even greater levels in fiscal year '19 and beyond.

第二，我們持續積極推動將外包代工產品去代工化（de-toll）。在這方面，Pharmachem與Ashland彼此相輔相成。我們的目標是在2018會計年度透過去代工化降低約200萬美元成本，並在2019會計年度及之後達到更高水準。

Next, to ensure our gross profit falls to the bottom line, we're committed to keeping our SG&A flat. We are expanding the use of our global business service centers, most of which is in India and Poland, and we're closing or consolidating our footprint of 9 administrative offices. These actions make us confident that we can deliver $3.20 to $3.40 of EPS in fiscal year '18, which represents a 30% to 40% increase over fiscal year '17 adjusted EPS.

接下來，為確保毛利能落到最終盈餘，我們承諾將銷售、一般及行政費用（SG&A）維持持平。我們正在擴大全球商業服務中心的使用，多數位於印度與波蘭，同時關閉或整併我們9個行政辦公室據點。這些行動讓我們有信心在2018會計年度達成每股盈餘（EPS）3.20至3.40美元，較2017會計年度調整後EPS成長30%至40%。

Next, we are committed to generating over $1 billion of cumulative cash flow by fiscal year 2021. Again, earnings growth will be the biggest contributor to these gains. But in addition, we plan to spend less than 6.5% of sales on CapEx plus changes in working capital. We have opportunities to lower our working capital and reduce CapEx, especially as we shift our focus from capital expansions to better utilizing our existing capacity.

接下來，我們承諾在截至2021會計年度期間累計創造超過10億美元的現金流。同樣地，獲利成長將是這些提升的最大貢獻來源。此外，我們計畫將資本支出（CapEx）加上營運資金變動的合計支出控制在銷售額的6.5%以下。我們有機會降低營運資金並減少資本支出，特別是在我們將重心從資本擴張轉向更有效運用既有產能之際。

Our capital allocation strategy hasn't changed. We are clearly excited by the acquisitions we made in fiscal year '17. As Kevin stated, our current priority is pay down debt to achieve our targeted gross level of 3.5x EBITDA. Also, the board has given us the authority to purchase up to $500 million of Ashland stock, and we believe our stock is significantly undervalued and are prepared to enter the market as appropriate. And finally, we continue to assess our portfolio, seeking to reduce our asset intensity and earnings volatility while strengthening investment in our most-differentiated markets.

我們的資本配置策略沒有改變。我們對於在2017會計年度完成的收購案感到非常振奮。如Kevin所述，我們目前的優先事項是償還債務，以達成我們目標的總槓桿水準：EBITDA的3.5倍。此外，董事會已授權我們最多可回購5億美元的Ashland股票；我們認為公司股價被明顯低估，並已準備在適當時機進場。最後，我們持續檢視投資組合，力求降低資產密集度與獲利波動，同時強化對我們最具差異化市場的投資。

So to sum it all up, the Ashland team has the vision, the products, the people, the infrastructure, the markets and the commitment to be the premier specialty chemical company. We outlined our plans to get there at our May Investor Day. Since then, we've been putting in place the systems, people and accountability to drive the results. Momentum is building. We know fiscal year is a crucial year, and we are excited to begin.

總結來說，Ashland團隊具備願景、產品、人才、基礎設施、市場以及成為頂尖特用化學品公司的承諾。我們已在5月的投資人日說明達成目標的計畫。自那之後，我們持續建立系統、配置人員並強化責任制，以推動成果落地。動能正在累積。我們知道本會計年度是關鍵的一年，我們也很期待正式展開。

With that, I say thank you for listening and for your interest in Ashland. Operator, please open the line to take questions. Thank you.

最後，感謝各位收聽並關注Ashland。接線員，請開放電話線以進行提問。謝謝。

(Operator Instructions) Your first question comes from the line of David Begleiter from Deutsche Bank.

(接線員指示) 第一個問題來自德意志銀行（Deutsche Bank）的David Begleiter。

Bill, Kevin, on ASI volumes, can you give us some color on the 0% volumes in Q4? And of your 2.5% to 3.5% growth in sales in FY '18 in ASI, how much is organic volume growth?

Bill、Kevin，關於ASI的銷量（volumes），能否請你們說明一下第4季銷量為0%的情況？另外，在你們對2018會計年度ASI銷售成長2.5%到3.5%的指引中，有多少來自有機銷量成長？

So first of all, let me speak to -- as we mentioned, we did have some nice gains in personal care and pharma and some of our specialty end markets in Q4. At the same time, the coatings market was relatively flat. And if you look at the reports of the coatings manufacturers, we're not out of sync with what they're seeing. We have begun to see an improvement in demand, and this is unusual because it's our year-end, and so we've already completed October, we saw that in October. And so we expect that Q1 revenue will be up in coatings. And in Q1 or Q2, we'll see the same in adhesives. In both of those markets, we're working the price/volume equation very hard to get the right balance. Cellulosics is one of those areas where there's been a lot of raw material inflation, so we are working to get that through. And I think that affected the -- if you will, the demand pattern as well. But we're staying strong on trying to get those through. And so the 2.5% to 3.5% that, well, you referenced, that's organic. That's not as a result of acquisitions.

首先，我先回應一下——如我們提到的，第4季在個人護理、製藥以及部分特用終端市場確實有不錯的成長。同時，塗料市場相對持平。如果你看塗料製造商的報告，我們與他們所看到的狀況是一致的。我們已開始看到需求改善，這點不尋常，因為那是我們的年度結束期；我們10月已結帳，而我們在10月就看到了改善。因此我們預期第1季塗料業務營收會上升。而在第1季或第2季，黏著劑也會出現同樣情況。在這兩個市場，我們正非常努力地處理價格/銷量（price/volume）方程式，以取得適當平衡。纖維素（Cellulosics）是原物料通膨相當明顯的領域之一，因此我們正努力把漲價傳導出去。我認為這也影響了——如果你願意這麼說——需求型態。但我們仍會堅持把這些漲幅傳導出去。至於你提到的2.5%到3.5%，那是有機成長。並非收購帶來的結果。

And Kevin, just on the free cash flow guidance for next year, how should we think about the use of that free cash between debt paydown, buybacks? Obviously, dividends as well.

另外Kevin，關於明年的自由現金流指引，我們應如何看待這些自由現金在用途上的分配：償債、庫藏股回購？當然也包括股利。

Sure. As indicated, we are focused on reducing the level of debt. That's the -- these aren't mutually exclusive opportunities for us. And as Bill mentioned, we do see the shares being significantly undervalued, and we have an authorization in place from our board to repurchase up to $500 million of stock. And certainly, we would have no hesitation to enter the market at appropriate times. The dividend policy is something we review annually, and we will do that in the normal course as we ordinarily do, and take a look at that as also an opportunity to return some capital -- or extra capital to shareholders. But again, we look at these in combination as opposed to being individually mutually exclusive. But primary focus will certainly be to get the balance sheet in a little better shape from a leverage perspective. But clearly, these other opportunities are out there and we're not blind to those, and we'll consider them all.

好的。如前所述，我們聚焦於降低負債水準。對我們而言，這些並非互斥的選項。而且如Bill提到的，我們確實認為股價被明顯低估；董事會已授權我們最多回購5億美元的股票。在適當時點，我們當然會毫不猶豫地進場。股利政策我們每年都會檢視，我們會照常在既定流程中進行年度檢討，並將其視為向股東返還部分資本——或額外資本——的另一種方式。但再次強調，我們會把這些選項作為組合來看，而不是把它們視為彼此互斥。不過，首要重點無疑是從槓桿角度讓資產負債表狀況更健康一些。但顯然，其他機會也都存在，我們不會忽視，並會一併納入考量。

Your next question comes from the line of Mike Sison from KeyBanc.

下一個問題來自KeyBanc的Mike Sison。

Bill, when you think about your outlook for ASI, could you give us the put and takes of what drives you to the higher end of that range for EBITDA in '18, and the lower end of the range?

Bill，當你看ASI的展望時，能否談談哪些因素會推動2018年EBITDA落在區間的高端，以及哪些因素會導致落在區間的低端？

Sure, sure. I mean, I think this is a year where the objectives, operationally, are very clear. One is we need to make sure that we're driving productivity, asset utilization and pricing to fully offset raw material inflation, and we need to do that quickly. And the second is we have growth objectives in our base plan and we have also some extra capacity that we could better utilize. And the quicker we move forward and the more impact we can have from that effort, that will be what will distinguish between the low end of the range and the high end of the range.

當然，當然。我的意思是，我認為這一年在營運面上的目標非常清楚。第一，我們必須確保推動生產力、資產利用率與定價，來完全抵銷原物料通膨，而且要快速做到。第二，我們在基本計畫中有成長目標，同時也有一些額外產能可以更有效地利用。我們推進得越快、從這項努力中能產生的影響越大，就越能拉開區間低端與高端之間的差異。

Okay. Great. And then you gave us sales trends by end market for ASI as well. When you think about the growth by the end markets in 2018, where do you think you'll see the biggest opportunity? And how much of that are driven by your new product development programs that you highlighted at the Analyst Day?

好的。很好。接著你們也向我們提供了 ASI 依終端市場劃分的銷售趨勢。當你們思考 2018 年各終端市場的成長時，你認為最大的機會會在哪裡？其中有多少是由你們在分析師日所強調的新產品開發計畫所驅動的？

Sure. I mean, the markets unfold and it's always difficult to predict exactly what'll happen globally, regionally and in specific markets. But frankly, our objective is to, within ASI, grow all of our segments more -- or markets in proportion roughly to what we showed in our Investor Day. So it's not unusually concentrated in one area or another. And...

當然。我的意思是，市場會逐步展開，而要精準預測全球、區域以及特定市場究竟會發生什麼，向來都很困難。但坦白說，我們的目標是在 ASI 內，讓所有事業部門——或市場——的成長，大致按我們在投資人日所展示的比例來推進。所以不會異常地集中在某一個領域或另一個領域。而且……

Yes, I think as you look at one of the key opportunities for us, and Bill mentioned it in his remarks, it's around pharma. We've been constrained in a variety of excipient product lines for a while. The team's done a nice job of managing through that and we've done a little bit of debottlenecking along the way. But this new Klucel capacity that's come onstream is going to be helpful. The work that's been done around Benecel and CMC will also be helpful and should allow us to take advantage of that in the marketplace and return to more historical growth rates in pharma. Pharma grew 2% in Q4 year-over-year. If you go back to our remarks that we made at the Investor Day, the growth CAGR for pharma in '13 to '16 was closer to 4%. And so it's our expectation that, that business is going to return to that growth rate. And we also saw some good growth in the quarter in personal care. I think the team has done a really good job of managing and upgrading the mix there. And from a new product introduction standpoint, that's really a critical area for us, is in the personal care space. And both the commercial and the R&D teams as long -- as well as the tech service teams, are very focused on driving innovation and really driving improvements in that part of the business as well.

是的，我認為當你看我們其中一個關鍵機會時，Bill 在他的談話中也提到，就是製藥領域。我們在多條賦形劑產品線上受產能限制已經有一段時間了。團隊在因應這些限制方面做得很好，我們也一路做了一些去瓶頸的工作。但這次新上線的 Klucel 產能將會很有幫助。圍繞 Benecel 與 CMC 所做的工作也會有所助益，並應能讓我們在市場上把握機會，使製藥業務回到較為歷史性的成長率。製藥在第四季年增 2%。如果回到我們在投資人日的說明，2013 到 2016 年製藥的 CAGR 更接近 4%。因此我們預期該業務將回到那樣的成長率。我們也看到本季個人護理有不錯的成長。我認為團隊在管理並提升產品組合方面做得非常好。而從新產品導入的角度來看，個人護理領域對我們而言確實是非常關鍵的區域。商務與研發團隊，以及技術服務團隊，都非常專注於推動創新，並真正推動該業務部分的改善。

Just one other point to add in. And we've spoken of the additive effect of Pharmachem in the targeted synergies, which are essentially cost-based. And what we, of course, are interested in and are getting more and more excited about is the potential to grow our business and grow their business by basically sharing our capabilities and infrastructure around the globe. And we're taking action on that front. We have just had a, if you will, a substantial review and exchange in Latin America, where the products that Pharmachem have provided have had limited route to market. And we have a sales team associated with that. At the same time, Pharmachem can produce a new and very advanced form of Klucel and actually use that in some of their nutraceutical markets. So we were really careful when discussing the acquisition to not -- because sales synergies always are dreams until they happen. But we expect that, that's going to be additive too as we try to drive growth in these kind of core market areas.

再補充一點。我們談過 Pharmachem 在目標協同效益中的加成效果，而那些基本上是以成本為主的。當然，我們更感興趣、也越來越感到振奮的是：透過在全球分享我們的能力與基礎設施，來帶動我們的業務成長並帶動他們的業務成長的潛力。我們也正在這方面採取行動。我們剛在拉丁美洲進行了一次（如果你願意這麼說）相當深入的檢視與交流；在那裡，Pharmachem 所提供的產品過去進入市場的通路相對有限。而我們有一支對應的銷售團隊。同時，Pharmachem 能生產一種新的、非常先進型態的 Klucel，並實際將其用於他們部分的營養保健品市場。所以我們在討論這項收購時非常謹慎，不去——因為銷售協同效益在發生之前永遠都只是夢想。但我們預期，當我們試圖在這些核心市場領域推動成長時，這也會帶來額外的加成。

Your next question comes from the line of Laurence Alexander from Jefferies.

下一個問題來自 Jefferies 的 Laurence Alexander。

Can you tease out a little bit what you're seeing in the nutrition and other end market for ASI? And when -- and what do you think it would take to return that piece to positive comparisons as well?

你能否稍微拆解一下你們在 ASI 的營養與其他終端市場看到的情況？以及——你認為需要什麼條件，才能讓那一塊也回到正向的同比比較？

I think in that market, is where you see some of those more price-sensitive areas. And wherever possible, we try to upgrade our mix. And we don't put -- the nutrition business is a good one, so we do have, if you will, investment and focus on it. But there has been a little bit more of a commodity dynamic in that area. That's also an area where the Pharmachem may help us to really drive a different kind of strategic orientation. So that's really, I think, what I would comment on there. Kevin, anything?

我認為在那個市場，你會看到一些對價格更敏感的領域。在可能的情況下，我們會嘗試提升我們的產品組合。我們不會——營養業務本身是個不錯的業務，所以我們確實對它投入並聚焦。但那個領域的商品化動態稍微更明顯一些。那也正是 Pharmachem 可能幫助我們推動不同策略取向的領域。所以我想我在這裡的評論大概就是這些。Kevin，還有什麼要補充的嗎？

Yes, I would maybe emphasize the Pharmachem piece of this a little bit. Part of what Pharmachem brought to the table is a nice aloe business that is definitely going to be accretive to our overall nutrition business. I think the team also brings some good perspective and philosophy around serving the nutrition market that I think over time could accelerate the velocity of new products as well as some differentiation down the line, which will be helpful for the overall nutrition business within Ashland. As we work through the integration effort, which is going along very, very well, as Bill indicated, I think we'll be able to tease out some more opportunities along those lines, which is -- the team's very excited about that.

是的，我可能會稍微強調一下 Pharmachem 這一塊。Pharmachem 帶來的其中一部分，是一個很不錯的蘆薈業務，這肯定會對我們整體營養業務帶來增益。我也認為該團隊在服務營養市場方面帶來了很好的觀點與理念，我認為隨著時間推進，這可能會加快新產品推出的速度，並在後續帶來一些差異化，這將有助於 Ashland 內部整體的營養業務。隨著我們推進整合工作——如 Bill 所指出的，進展非常、非常順利——我認為我們將能在這些方向上挖掘出更多機會，而團隊對此非常興奮。

Your next question comes from the line of Christopher Parkinson from Crédit Suisse.

下一個問題來自 Crédit Suisse 的 Christopher Parkinson。

This is Kieran De Brun on for Chris Parkinson. I just wanted to follow up. Like, in your slides, you mentioned the team's been working hard to drive price in both coatings and adhesives. If you could just give a little bit more detail here and walk through any changes regarding your core ASI pricing strategies since your Analyst Day, that would be really appreciated.

我是代 Chris Parkinson 提問的 Kieran De Brun。我想再追問一下。例如在你們的投影片中，你提到團隊一直努力在塗料與黏著劑兩個領域推動提價。如果你能在這裡提供更多細節，並說明自分析師日以來你們核心 ASI 定價策略的任何變化，我會非常感謝。

Sure. I think the net of it is, is since our Analyst or Investor Day, where we were focused a lot on -- for example, we've done profit specialist training to make sure that we're setting the full value, we've looked at the individual things that we're providing to consumers that really perhaps we should be charging for. And we are making good gains on that front. But frankly, that's been put secondary to the raw material inflation that we've seen that has really emerged over the course of the last 3 to 6 months. And that, like I said, was roughly $25 million for ASI, and it's important that we address that. And that takes a lot of time and a lot of resources. And so we have established, as I mentioned, I think, a great process to identify the raw material impact on our products, to have a global view as to the actions that we have to take to set objectives and to drive actions and results. And so that's just a fundamental priority. But it has shifted a little bit from the Investor Day only because of increased raw material inflation. And oil prices are up, you have some lingering impact on supply chains from the hurricanes and so forth. So perhaps as the year goes on, we'll see that go down. But that's not what we're planning on. We're planning on offsetting the raw material inflation that we're seeing today.

當然。我認為重點是，自我們的分析師日或投資人日以來，我們當時很聚焦於——例如，我們做了獲利專家訓練，以確保我們能設定完整價值；我們也檢視了我們提供給客戶的各項個別內容，其中有些其實也許應該收費。而我們在這方面取得了不錯的進展。但坦白說，這已被我們所看到的原物料通膨放到次要位置；而原物料通膨在過去 3 到 6 個月期間確實逐步浮現。而那個影響，如我所說，對 ASI 約為 2,500 萬美元，因此我們必須加以因應，這很重要。而這需要大量時間與資源。因此我們已建立——如我提到的——一套很好的流程，用以辨識原物料對我們產品的影響，從全球角度來看我們必須採取的行動，設定目標並推動行動與成果。所以這就是一項根本性的優先事項。但它相較於投資人日的重點確實有些轉移，僅僅是因為原物料通膨加劇。油價上漲，加上颶風等因素對供應鏈仍有一些殘留影響。所以也許隨著年度推進，我們會看到那個影響下降。但那不是我們的規劃假設。我們的規劃是要抵銷我們今天所看到的原物料通膨。

And to Bill's point, specifically you have visibility by end market and by region even down to the product level frankly of impacts in raw material inflation. And we also have strengthened our governance processes as well as our review processes around price over cost dynamics in the business to hold our teams, I think, even more accountable to this dynamic, which has changed. We have seen more inflationary activities, partly hurricane-driven I suppose, but that's been more of the case in the ASI business. And the team has had to retool a bit to adjust to that. I think frankly they've done a nice job with it, they understand the imperative, they understand what they need to do and they're acting accordingly. So it just takes some time to get there, but they're very focused on it and we're holding them accountable for it.

而且呼應 Bill 的觀點，具體來說，您其實可以按終端市場、按區域，甚至細到產品層級，清楚掌握原物料通膨影響。同時，我們也強化了治理流程以及對業務中「價格相對成本」動態的檢視流程，我認為這讓我們能更進一步要求團隊對這個已經改變的動態負起責任。我們看到更多通膨活動，我想部分是颶風所驅動，但這種情況在 ASI 業務上更為明顯。團隊也必須稍微重新調整以因應。坦白說，我認為他們做得很好；他們理解其迫切性，知道該做什麼，並且正在相應採取行動。所以這需要一些時間才能到位，但他們非常專注，我們也會要求他們為此負責。

It is interesting when you look at it, and we as a company in fiscal year '17, had over $80 million of raw material inflation. And we haven't really talked that much about it, we've talked about pricing our way through it. And that's because we're really, from a cultural standpoint, trying to focus on the things we can do to drive results, even in challenging context. But $80 million is a pretty big number. So the team did a nice job, but we have more work we have to do and so we're working it hard. That, as I mentioned before, is 1 of our 2 true key success factors for the year.

有趣的是，當你回頭看，我們公司在 2017 財年承受了超過 8,000 萬美元的原物料通膨。而我們其實沒有談太多，我們更多是在談我們如何透過定價來消化它。這是因為從文化角度來看，我們真的在努力把焦點放在即使在充滿挑戰的環境下、我們仍能做的事情，以推動成果。但 8,000 萬美元是一個相當大的數字。所以團隊做得不錯，但我們還有更多工作要做，因此我們正全力推進。正如我先前提到的，這是我們今年兩個真正關鍵的成功因素之一。

Your next question comes from the line of Jeff Zekauskas from JPMorgan.

您的下一個問題來自摩根大通（JPMorgan）的 Jeff Zekauskas。

I'm not -- I think in the quarter, you took $50 million in charges. How much of the $50 million were cash charges? And in the $7 million charge that you took in your Intermediates and Solvents business, is that just for the manufacturing outage? Or does that encompass some lost profits because your operation was down?

我不太——我想在本季你們認列了 5,000 萬美元的費用。這 5,000 萬美元中有多少是現金性費用？另外，你們在中間體與溶劑（Intermediates and Solvents）業務認列的 700 萬美元費用，這只是製造停工的費用嗎？還是也包含因營運停擺而造成的一些利潤損失？

Perhaps I can answer the second one and Kevin can answer the first one. That was really the expenses that were related to the facility being down. We did lose some revenue opportunities, but that's -- we didn't put it in that $7 million number. So...

也許我可以回答第二個問題，第一個讓 Kevin 來回答。那 700 萬美元主要是與該設施停工相關的費用。我們確實失去了一些營收機會，但那——我們沒有把它算進這 700 萬美元裡。所以……

Yes, that's -- and the $6 million of unplanned plant shutdowns that you see in the Specialty Ingredients column on Page 19 of our results we released last night, was related to the hurricane Harvey outage at our Texas City plant. And again, that's basically -- mostly, it's lost absorption, frankly. And as indicated, there really wasn't much impact in the quarter relative to the hurricane around operating results. In terms of call it cash cost, probably the $23 million of separation and restructuring certainly have a cash impact to them. I mean, in the end, over some period of time, there's cash associated with all of these. I mean, unabsorbed plant cost is ultimately money that you've spent to run the plant even though you weren't producing volume. So -- but the more direct version of that would be the separation and restructuring costs of $23 million that were incurred in the quarter.

是的，另外你在我們昨晚發布的業績資料第 19 頁、特用成分（Specialty Ingredients）欄位中看到的 600 萬美元非計畫性工廠停工費用，與我們德州城（Texas City）工廠因哈維颶風停工有關。同樣地，基本上——坦白說，多數是產能吸收不足（lost absorption）。而且如同所指出的，本季颶風對營運結果的影響其實不大。就所謂現金成本而言，約 2,300 萬美元的分拆與重整費用（separation and restructuring）當然會有現金影響。我的意思是，最終在某段期間內，這些項目都會伴隨現金支出。也就是說，未吸收的工廠成本，終究是你為了維持工廠運轉所花出去的錢，即便你沒有生產出相應的產量。所以——但更直接的答案是，本季發生的 2,300 萬美元分拆與重整成本。

Okay. And I take it that there's no -- in your Intermediates and Solvents operation in Germany, are you running at full capacity utilization rates now? Is that...

好的。那我理解在你們德國的中間體與溶劑營運中，你們現在的產能利用率已經回到滿載了嗎？是這樣嗎……

We are. We are and have been since kind of mid- to third week of September. That was back up -- go ahead.

是的，我們是。而且自 9 月中旬到第 3 週左右以來就一直是如此。那時候已經恢復——請繼續。

And I take it that there's not much raw material inflation in butanediol production right now. [Maybe in] formaldehyde, but that's about it. Is that correct?

那我理解目前在 1,4-丁二醇（butanediol）生產方面，原物料通膨不算明顯。[也許在]甲醛（formaldehyde）有一些，但大概就這樣。這樣說正確嗎？

We are not seeing as much raw material inflation. We have seen year-over-year inflation up to this point, and we've worked, of course, to offset that with the price increases. And there will be some, if you will, price or raw (inaudible) increases in that business, but I would say the dynamics are more related to supply/demand as it relates to the pricing at this point.

我們確實沒有看到那麼多原物料通膨。到目前為止，我們仍看到年對年通膨，而我們當然也一直努力透過漲價來抵消。而在那個業務中，仍會有一些（如果你願意這麼說）價格或原物料（聽不清）上漲，但我會說目前的動態更多與供需有關，並反映在定價上。

And then lastly, in composites. Your volume, I think, exclusive of acquisition was up about 15% in the quarter. Is that because you had capacity available, while others were out during the hurricane? That is -- it just seemed an unusually large amount of volume growth.

最後一個問題，關於複合材料（composites）。你們本季的銷量，我想若不含併購因素，大約成長了 15%。這是因為颶風期間其他同業停工，而你們有可用產能嗎？也就是——這樣的銷量成長看起來異常地大。

Yes. I don't think 15% is the new norm for that business. And sometimes, you do have some, if you will, seasonality or quarter-to-quarter adjustments. But I don't believe there was anything that I heard of that related to other competitors not being able to support their end customers, and thus the business fell to us. I think it was good, hard work, and again, maybe a little bit of timing to drive that business.

是的。我不認為 15% 會成為該業務的新常態。而且有時候，你確實會看到一些（如果你願意這麼說）季節性或季度間的調整。但我沒有聽說有任何情況是因為其他競爭對手無法支援其終端客戶，因此業務轉到我們這裡。我認為這是扎實的努力成果，另外可能也有一點時點因素，帶動了這項業務。

Yes. And that's supported by the fact that the composites business for the quarter and frankly for the year grew in every region, including North America, where there was hurricane impact. The team just did a really nice job of executing and certainly took some share, it's not a market that grows that fast, obviously. So the teams just done a really nice job of executing in that business on a number of fronts. As Bill indicated, we had over $80 million of raw material cost inflation during the year, and as referenced, $50 million of that plus was in the composites space. And the team was able to more than overcome that through a combination of price and volume. And it's really just strong execution by the team throughout the year as they faced that raw material inflation.

是的。而這也可由以下事實支持：複合材料業務在本季、甚至坦白說在全年，各區域都成長，包括受到颶風影響的北美地區。團隊在執行上做得非常出色，確實也拿到了一些市占；顯然這不是一個能長得那麼快的市場。因此團隊在多個面向上，對該業務的執行都做得非常好。如 Bill 所指出，我們全年原物料成本通膨超過 8,000 萬美元，而如前所述，其中 5,000 萬美元以上發生在複合材料領域。而團隊透過價格與銷量的組合，不僅抵消了這些影響，甚至還超越。這真的就是團隊在全年面對原物料通膨時所展現的強勁執行力。

Your next question comes from the line of John Roberts from UBS.

您的下一個問題來自瑞銀（UBS）的 John Roberts。

Can you hear me?

你聽得到我嗎？

Sure.

當然。

Good, I apologize, I jumped on a little bit late. But when you had your Investor Day, there was a long laundry list of operational improvement items. And they added up to a very large number, and you told us not to add them together because there was some overlap between the programs. How do we track your progress against that composite basket of operational programs that you have?

很好，抱歉，我稍微晚了一點才加入。不過在你們的投資人日（Investor Day）上，有一長串營運改善項目清單。加總起來是一個非常大的數字，而你們告訴我們不要把它們加在一起，因為各項計畫之間有一些重疊。那我們要如何追蹤你們在這一籃子營運計畫上的整體進展？

Yes, sure. And in the call, we did identify some of the actions we're taking and some of the related impact from facility closures and de-tolling. Ultimately, we look at the cost per unit of production as a core metric that will help us to track the improvement that we see year-over-year and going forward. So that's an important one for us and that has 2 components. One of which relates to your spend versus either plan or prior year. And the other is the mix and quantity of units that you drive through the assets. And then the third is the, if you will, cost associated with conducting turnaround. So those are 3 areas. And there's -- that's very consistent with our Investor Day. There's a lot of detail there and we track it on a very comprehensive scorecard. But there are some details there which I think are important but not maybe appropriate to communicate each call or something like that.

好的，當然。在這通電話會議中，我們確實指出了一些正在採取的行動，以及與關廠與去代工（de-tolling）相關的一些影響。最終，我們會把「每單位產量成本」（cost per unit of production）視為核心指標，用來追蹤我們年對年的改善，以及未來的改善。所以這對我們很重要，而它包含兩個構成要素。其中之一是你的支出相對於計畫或前一年的差異。另一個是你透過資產所推動的單位組合與數量。然後第三個是（如果你願意這麼說）與執行歲修（turnaround）相關的成本。所以這是三個面向。而且——這與我們投資人日的內容非常一致。那裡有很多細節，我們也用非常全面的計分卡來追蹤。但其中有些細節我認為很重要，不過可能不適合在每次電話會議或類似場合逐一對外溝通。

Okay. In your Intermediate and Solvents guidance, what oil prices are incorporated in that guidance for the full year?

好的。在你們的中間體與溶劑（Intermediates and Solvents）指引中，全年指引納入了哪些油價假設？

Basically, we use, basically, the external forward look and kind of drive a stake in the ground. We don't presume inflation or deflation, so it's basically the forward look for the year. So on kind of a weighted-average basis. And there is some impact clearly as crude moves around to the raw materials within Intermediates and Solvents. And energy, as we run the rest of the business. But by and large, as Bill indicated, it's -- pricing in that business is somewhat dependent upon raw material moves, but it tends to be more dependent upon supply/demand dynamics at various points in time during the year. And those are really when pricing opportunities are more likely to present themselves.

基本上，我們採用外部的遠期展望，並在此基礎上做出一個明確的假設基準。我們不預設通膨或通縮，因此基本上就是採用該年度的遠期展望。所以是以加權平均的方式來看。而且，當然，隨著原油價格波動，會對中間體與溶劑中的原料成本產生一些影響。以及在我們經營其餘業務時的能源成本。但整體而言，如 Bill 所指出的，那個業務的定價在某種程度上取決於原料變動，但往往更取決於一年中不同時間點的供需動態。而真正更可能出現定價機會的時候，就是在那些供需動態變化之際。

(Operator Instructions) Your next question comes from the line of Jim Sheehan from SunTrust.

(接線員指示) 下一個問題來自 SunTrust 的 Jim Sheehan。

I want to ask about your 2018 EPS guidance. It looks like if you calculate your EBITDA by segment and some of the other guidance you provided that you could -- it might imply a higher EPS range than you've actually guided to. So is that due to the possible variance in your tax rate? Or what might be causing that variance?

我想問一下你們 2018 年的 EPS 指引。看起來如果按事業部計算你們的 EBITDA，以及你們提供的其他指引，你可能會——這可能意味著比你們實際給出的指引更高的 EPS 區間。所以這是因為你們稅率可能的變動所致嗎？或者是什麼原因造成這個差異？

Yes. If you assume everything at the low end or everything at the high end, you certainly would get a broader range. And what we've tried to do is, by using our best estimates, arrive at a range that we think is, number one, certainly challenging; but number two, also achievable. Just how we landed at $3.20 to $3.40 a share, which keep in mind, is a 30% to 40% increase over fiscal year '17. And in the end, tax rates certainly does have some impact on that, obviously. We've set a range of 8% to 13%. Q1, we're using 10% to arrive at our $0.35 to $0.45 per share, which as a reminder, at the midpoint of that range is nearly triple what was generated in Q1 of last year. And so it's -- it just presumes that we hit the ranges, obviously. And we've made a commitment around ASI of mid- to high-single digit EBITDA growth throughout the entire year. And we've talked a fair bit about the actions we've taken to ensure we achieve that, and certainly, that's what the team's being held accountable for. So the $3.20 to $3.40 is the stake that we've driven in the ground. As we progress through the year, we will tighten up that range accordingly and provide obviously as much detail as we feel appropriate on why and how we may be moving the range, whether it's EBITDA or EPS. But this is where we are right now.

是的。如果你假設所有項目都在低端或所有項目都在高端，你確實會得到一個更寬的區間。而我們嘗試做的是，使用我們最佳的估計，得出一個我們認為：第一，確實具有挑戰性；但第二，也可達成的區間。這就是我們如何落在每股 3.20 美元到 3.40 美元之間；請記住，這相較於 2017 財年增加了 30% 到 40%。最終，稅率當然也會對此產生一些影響，這是顯而易見的。我們設定的稅率區間是 8% 到 13%。第一季我們使用 10% 來推導每股 0.35 美元到 0.45 美元的區間；提醒一下，該區間的中點幾乎是去年第一季所產生的三倍。因此——這只是預設我們能達到這些區間，顯然如此。而且我們已就 ASI 承諾全年 EBITDA 成長為中到高個位數。我們也相當多地談到為確保達成該目標所採取的行動，當然，團隊也以此作為績效責任。所以 3.20 美元到 3.40 美元就是我們所確立的基準。隨著年度進展，我們會相應收斂該區間，並在我們認為適當的範圍內提供盡可能多的細節，說明為何以及如何調整區間，不論是 EBITDA 或 EPS。但目前我們就是在這個位置。

And on Intermediates and Solvents, looks like [supply/demand] has become a lot more favorable than it was, say, a year ago. Can you update us on your thoughts on the strategic options for that business?

另外在中間體與溶劑方面，看起來供需狀況已經比例如一年前更有利得多。你能更新一下你們對該業務策略選項的看法嗎？

Our strategic thought process around that business is very consistent with what we stated in our Investor Day. Just to kind of put it in perspective, roughly in our fiscal year '17, you had, in the first 2 quarters, about $5 million of EBITDA. And then the second 2 quarters, about $20 million. And so with that in mind, it's -- obviously, we want to be responsible stewards of the asset. That doesn't mean that we ride and try to time the whole market, but we were definitely approaching an inflection point, which is why we said we want to be responsible. And it was meant to be during our strategic plan period, but with a bias towards taking action sooner rather than later.

我們對該業務的策略思考流程，與我們在投資人日所陳述的非常一致。為了提供一些背景，大約在我們 2017 財年，你在前兩個季度的 EBITDA 約為 500 萬美元。而後兩個季度約為 2,000 萬美元。因此基於這點——顯然，我們希望成為該資產負責任的管理者。這並不表示我們要一路持有並試圖精準踩點整個市場，但我們確實正在接近一個拐點，這也是我們說希望負責任的原因。原本的意圖是在我們策略規劃期間內進行，但傾向於更早採取行動，而不是更晚。

Your next question comes from the line of Mike Harrison from Seaport Global Securities.

下一個問題來自 Seaport Global Securities 的 Mike Harrison。

This is the first time that we've seen you guys break out some of the different pieces of the Specialty Ingredients business in terms of the revenue and the revenue growth there. Can you walk us through, at least directionally, how we should think about the margin profile of each of those pieces, as being maybe above or below or in line with the overall Specialty Ingredients segment average?

這是我們第一次看到你們把特用成分（Specialty Ingredients）業務中不同部分的營收與營收成長拆分出來。你能否帶我們梳理一下，至少在方向性上，我們應該如何看待各部分的毛利／利潤率輪廓：是高於、低於，或大致與特用成分事業部整體平均一致？

That is something that, I mean, I think directionally, we can speak to without getting into exactly where these things fall out. Clearly, the pharma and personal care have an attractive profile, given the markets that they go into. Adhesives and coatings are really in the sweet spot of our industrial business. And then as we mentioned, some of the other things, like nutrition, construction, those tend to be a little bit more not commodity, but there are others out there that can provide those materials. So if you were trying to put together a spectrum, that's kind of the 3 buckets that I would put it in. But we haven't said specifically what the stratification of that bucket or buckets would be. And so I think that might be for another day.

這件事——我的意思是，我認為我們可以在不談到這些項目精確落點的情況下，做方向性的說明。很明顯，製藥與個人護理因其所服務的市場而具有吸引人的輪廓。黏著劑與塗料確實位於我們工業業務的甜蜜點。然後如我們提到的，其他一些領域，例如營養、建築，這些往往稍微更偏向——不是大宗商品，但市場上也有其他供應商能提供這些材料。所以如果你要把它整理成一個光譜，大致就是我會放進去的三個類別。但我們尚未具體說明該類別或各類別內的分層情況。因此我想這可能留待日後再談。

No, that's helpful. And then on the Pharmachem contribution in the quarter, you had given us, that's about $300 million in annual revenues, so I took that to mean around $75 million a quarter. And then you put up a quarter here that was $68 million. So just wondering, is that business seeing some declines in volume or pricing? Or is that seasonality? Just wondering if you can help put the Q4 sales number for Pharmachem in some context for us.

不，這很有幫助。接著關於本季 Pharmachem 的貢獻，你之前告訴我們年營收大約 3 億美元，所以我理解為每季大約 7,500 萬美元。但你們這一季做出來是 6,800 萬美元。所以我想了解，這個業務是否在銷量或定價上出現一些下滑？還是這是季節性因素？想請你幫我們把 Pharmachem 第四季的銷售數字放在一個脈絡中解讀。

Yes. Mike, that's more seasonality. There is a bit of seasonality in that business, just like there is the rest. And our overall outlook of what Pharmachem can and should produce has not changed, either from a top line or an EBITDA perspective, along with our expectations around hard synergies that we're working to capture and have been working to capture since we closed on the business.

是的。Mike，那比較是季節性因素。那個業務有一些季節性，就像其他業務一樣。而我們對 Pharmachem 能夠且應該產出的整體展望並未改變，無論是營收端或 EBITDA 的角度；同時也包括我們對硬性協同效益的預期——我們正努力擷取，且自完成該業務收購交割以來就一直在推進。

There are no further questions at this time. I turn the call back over to the presenter for closing remarks.

目前沒有進一步的問題。我把電話交回給簡報者做結語。

Thank you very much, Amanda. Everyone, thank you for your time this morning. Thank you for your interest in Ashland. I hope everyone has a great day.

非常感謝你，Amanda。各位，感謝大家今天早上的時間。感謝大家對 Ashland 的關注。祝大家今天愉快。

Ladies and gentlemen, this concludes today's conference. Thank you for your participation, and have a wonderful day. You may all disconnect.

各位女士、先生，今天的會議到此結束。感謝各位的參與，祝各位有美好的一天。各位可以掛線。