Ashland Inc. (ASH) 2024 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Ashland Inc. Second Quarter 2024 Earnings Conference Call.

各位好，感謝您稍候。歡迎參加 Ashland Inc. 2024 年第二季財報電話會議。

(Operator Instructions)

（接線員指示）

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today. William Whitaker, Vice President of Finance and Director of Investor Relations. Please go ahead.

請注意，今天的會議將被錄音。現在我想把會議交給今天的主講人：財務副總裁暨投資人關係總監 William Whitaker。請開始。

Thank you, Daniel. Hello, everyone, and welcome to Ashland's Second Quarter Fiscal Year 2024 Earnings Conference Call and Webcast. My name is William Whitaker, Vice President of Finance and Director of Investor Relations. Joining me on the call today are Guillermo Novo, Ashland Chair and Chief Executive Officer; and Kevin Willis, Senior Vice President and Chief Financial Officer.

謝謝你，Daniel。各位好，歡迎參加 Ashland 2024 會計年度第二季財報電話會議與網路直播。我是財務副總裁暨投資人關係總監 William Whitaker。今天與我一同出席的還有 Ashland 董事長兼執行長 Guillermo Novo，以及資深副總裁兼財務長 Kevin Willis。

Ashland released results for the quarter ended March 31, 2024, at approximately 5:00 p.m. Eastern time yesterday, April 30. The news release issued last night was furnished to the SEC in a Form 8-K. During today's call, we will reference slides that are currently being webcast on our website, ashland.com, under the Investor Relations section. We encourage you to follow along with the webcast during the call.

Ashland 已於昨日 4 月 30 日美東時間約下午 5:00 公布截至 2024 年 3 月 31 日止季度的業績。昨晚發布的新聞稿已以 Form 8-K 形式提交給美國證券交易委員會（SEC）。在今天的電話會議中，我們將引用目前於本公司網站 ashland.com「投資人關係」專區同步網路直播的簡報投影片。我們鼓勵您在會議進行期間一同觀看網路直播。

Please turn to Slide 2. As a reminder, during today's call, we will be making forward-looking statements on several matters, including our financial outlook for our third quarter and full year fiscal 2024. These forward-looking statements are subject to risks and uncertainties that could cause future results or events to differ materially from today's projections. We believe any such statements are based on reasonable assumptions, but cannot assure that such expectations will be achieved.

請翻到投影片第 2 頁。提醒各位，今天的電話會議中，我們將就多項事項作出前瞻性陳述，包括我們對 2024 會計年度第三季及全年財務展望。這些前瞻性陳述受風險與不確定性影響，可能導致未來結果或事件與今日預測存在重大差異。我們相信此類陳述係基於合理假設，但無法保證相關預期一定能達成。

Please refer to Slide 2 of the presentation for an explanation of those risks and uncertainties and the limits applicable to forward-looking statements. You can also review our most recent Form 10-K under Item 1A for a comprehensive discussion of the risk factors impacting our business. Please also note that we will be referring to certain actual and projected financial metrics of Ashland on an adjusted basis, which are non-GAAP financial measures.

請參閱簡報投影片第 2 頁，以了解上述風險與不確定性的說明，以及前瞻性陳述所適用的限制。您也可查閱我們最新的 Form 10-K 中第 1A 項，以獲得影響本公司業務之風險因素的完整討論。另請注意，我們將以調整後（adjusted）基礎引用 Ashland 若干實際與預估財務指標，這些屬於非 GAAP 財務衡量指標。

We will refer to these measures as adjusted and present them to supplement your understanding and assessment of the financial performance of our ongoing business. Non-GAAP measures should not be considered as a substitute for or superior to financial measures calculated in accordance with GAAP. The most directly comparable GAAP measures, as well as reconciliations of the non-GAAP measures to those GAAP measures are available on our website and in the appendix of today's slide presentation.

我們將把這些衡量指標稱為「調整後」並用以補充您對本公司持續經營業務財務表現的理解與評估。非 GAAP 指標不應被視為 GAAP 計算之財務指標的替代或更優指標。最直接可比的 GAAP 指標，以及非 GAAP 指標與該等 GAAP 指標之調節表，均可於本公司網站及今日簡報投影片附錄中取得。

Please turn to Slide 3. Guillermo will begin the call this morning with an overview of Ashland's performance and results in the second quarter. Next, Kevin will provide a detailed review of financial results for the quarter, followed by commentary related to Ashland's outlook for our third quarter and full year fiscal 2024. Guillermo will then provide an update related to Ashland's strategic priorities, and then we will open your line for questions.

請翻到投影片第 3 頁。Guillermo 將於今天早上先就 Ashland 第二季的表現與業績作概述。接著 Kevin 將詳細回顧本季財務結果，並就 Ashland 2024 會計年度第三季及全年展望提供評論。之後 Guillermo 將更新 Ashland 的策略重點，最後我們將開放提問。

Please turn to Slide 5. I will now turn the call over to Guillermo for his opening comments. Guillermo?

請翻到投影片第 5 頁。接下來我將把電話會議交給 Guillermo 發表開場評論。Guillermo？

Thank you, William, and hello, everyone. Thank you for your interest in Ashland and for your participation today. Financial results for the March quarter exceeded our adjusted EBITDA outlook range issued on January 30, 2024, with revenues at the midpoint.

謝謝你，William，各位好。感謝各位對 Ashland 的關注並參與今天的會議。3 月季度的財務結果超出我們於 2024 年 1 月 30 日發布的調整後 EBITDA 展望區間，營收則落在區間中點。

Overall sales declined 5% from the prior quarter to $575 million (corrected by company after the call). Improving sales trends noted in our last conference call continued for the balance of the second quarter, delivering year-over-year volume growth for the first time since June of 2022 quarter.

整體銷售額較前一季下滑 5% 至 5.75 億美元（公司於會後更正）。我們在上次電話會議中提到的銷售趨勢改善，在第二季剩餘期間持續延伸，並帶來自 2022 年 6 月季度以來首次的年對年銷量成長。

While still early from a trending perspective, the breadth of our ongoing recovery, as well as the constructive external data reinforces our belief that demand normalization is underway within Personal Care and Specialty Additives segments. Looking ahead, April sales are reflective of continued Personal Care and Specialty Additives momentum.

雖然從趨勢角度來看仍屬早期，但我們復甦的廣度，以及外部數據的正向訊號，強化了我們的看法：個人護理（Personal Care）與特用添加劑（Specialty Additives）部門的需求正進入常態化。展望未來，4 月銷售反映個人護理與特用添加劑動能持續。

Within Life Science, stable demand in pharma cellulosics was more than offset by the normalization of competitive dynamics in pharma PVP. Pharma PVP volumes were stable sequentially, and we expect overall pharma year-over-year comparisons to improve in the second half as we lap our strong prior year cost. Pricing was down primarily within intermediates, as the Ashland team worked to strike an appropriate balance with moderating costs and increasing competitive activities.

在生命科學（Life Science）方面，藥用纖維素（pharma cellulosics）需求穩定，但被藥用 PVP（pharma PVP）競爭態勢回歸常態所抵銷。藥用 PVP 銷量較前一季持平；我們預期隨著下半年進入去年高基期，整體藥用業務的年對年比較將改善。價格下滑主要發生在中間體（intermediates），Ashland 團隊在成本趨緩與競爭活動增加之間，努力取得適當平衡。

Excluding intermediates, lower prices was largely consistent with favorable raw material costs. The largest impact in our second quarter profitability versus prior year quarter were intermediate pricing and the reset of variable compensation. Production volumes were down 5%, primarily related to Specialty Additives and Intermediates, while overall sales were up 3% versus the prior year.

若排除中間體，較低的價格大致與原物料成本下降的有利因素一致。我們第二季獲利能力相較去年同期受影響最大的因素為中間體定價，以及變動薪酬的重設。產量下滑 5%，主要與特用添加劑與中間體相關；而整體銷售額較去年同期成長 3%。

Based on current inventory levels and demand forecast, we expect to produce at or slightly above the sales volume for the balance of the fiscal year. Overall, while adjusted EBITDA for the quarter decreased 13% to $126 million, it was above expectations for the quarter. Reduced income, partly offset with share repurchase activity over the last year, yielded an 11% decrease in adjusted EPS to $1.27.

基於目前庫存水位與需求預測，我們預期在本會計年度剩餘期間，產量將與銷售量持平或略高。整體而言，本季調整後 EBITDA 下降 13% 至 1.26 億美元，但仍高於本季預期。獲利下滑部分被過去一年股票回購活動所抵銷，使調整後每股盈餘（EPS）下降 11% 至 1.27 美元。

Please turn to Slide 6. Overall sales declined due to the factors that I referenced earlier with the largest relative impact in our Intermediates and Life Science business units. Notably, Personal Care sales turned positive for the first time since Q4 fiscal year '22 with momentum in several end markets and regions.

請翻到投影片第 6 頁。整體銷售下滑係由我先前提到的因素所致，其中相對影響最大的是我們的中間體與生命科學事業單位。值得注意的是，個人護理銷售自 2022 會計年度第四季以來首次轉為正成長，並在多個終端市場與地區展現動能。

Sequentially, overall sales volume increased 30% with a proportional increase in production. This was the key driver of the 710 basis points quarter-over-quarter adjusted EBITDA margin improvement for the company.

就季比而言，整體銷售量增加 30%，產量亦按比例提升。這是推動公司調整後 EBITDA 利潤率季比改善 710 個基點的關鍵因素。

Life Science, Personal Care and Intermediates delivered high-quality margins for the quarter. Specialty Additives was able to improve adjusted EBITDA margins by over 1,200 basis points quarter-over-quarter with an opportunity to further expand going forward. While this is a return to a more typical overall adjusted EBITDA margin for Ashland, we believe there's opportunity to improve to the mid-20s in the second half.

生命科學、個人護理與中間體在本季均繳出高品質的利潤率。特用添加劑的調整後 EBITDA 利潤率季比提升超過 1,200 個基點，且未來仍有進一步擴張空間。雖然這代表 Ashland 整體調整後 EBITDA 利潤率回到較典型水準，但我們認為下半年仍有機會提升至 20% 中段水準。

Please turn to Slide 7. Take a step back, the broad themes impacting our performance going forward are the normalization of demand, the quality and resiliency of our core markets and building organic growth catalysts. Normalization is simply the return to customer trend demand following last year's unprecedented and extended destocking. This is about the convergence of our demand with our customers' demand.

請翻到投影片第 7 頁。退一步看，影響我們未來表現的主要主題包括：需求常態化、核心市場的品質與韌性，以及建立有機成長催化劑。所謂常態化，指的是在去年前所未見且延長的去庫存之後，回到客戶的趨勢性需求。也就是讓我們的需求與客戶的需求趨於一致。

Even under a flat to low market growth scenario, our volume demand should increase, driving both improved sales and production volumes, which will improve financial performance. From our perspective, demand is normalizing. Kevin will further explain these dynamics impact and the impact on our outlook in the presentation.

即使在市場成長持平至低成長的情境下，我們的銷量需求仍應增加，帶動銷售與產量提升，進而改善財務表現。就我們的觀點，需求正在常態化。Kevin 將在簡報中進一步說明這些動態及其對我們展望的影響。

Once demand has normalized, the fundamentals of the core business will drive underlying performance. Our core businesses are focused on high-value and resilient consumer-based industries, Pharma, Personal Care and Coatings. For most of our customers or the customers we serve, end market demand has been resilient and is expected to remain resilient. All these markets have strong underlying megatrends that will continue to provide profitable growth opportunities.

一旦需求常態化，核心業務的基本面將驅動內在表現。我們的核心業務聚焦於高價值且具韌性的消費導向產業：製藥（Pharma）、個人護理（Personal Care）與塗料（Coatings）。對我們多數客戶或我們所服務的客戶而言，終端市場需求一直具韌性，且預期將持續具韌性。這些市場皆有強勁的長期趨勢（megatrends），將持續提供具獲利性的成長機會。

Lastly, we will continue to improve our underlying business mix. Our portfolio improvement actions will improve our portfolio and the quality and resilience of our business mix. Kevin will provide a detailed update later, but our portfolio optimization activities remain on track. Longer term, it's about having strong catalysts to drive our company's future profitable growth.

最後，我們將持續改善我們的基礎業務組合。我們的投資組合改善行動將提升投資組合，以及業務組合的品質與韌性。Kevin 稍後會提供更詳細更新，但我們的投資組合優化活動仍按計畫推進。長期而言，重點在於具備強而有力的催化劑，以推動公司未來的獲利成長。

Our strategic priorities of execute, globalize, innovate and acquire, will provide us unique profitable growth catalysts over the coming decade. Many of these opportunities are not factored in or reflected in our current valuation. If we look at execute, we have the opportunity to further strengthen our core businesses through productivity, commercial excellence and innovation.

我們的策略重點——執行（execute）、全球化（globalize）、創新（innovate）與併購（acquire）——將在未來十年為我們帶來獨特且具獲利性的成長催化劑。其中許多機會尚未被納入或反映在我們目前的估值中。以「執行」而言，我們有機會透過生產力提升、商業卓越與創新，進一步強化核心業務。

On globalize, we have 4 strong businesses that represent 10% of our sales and are well positioned to grow and improve our profitability. We are actively investing on these businesses. Lastly, our Innovate strategic priority presents us with the most powerful growth catalyst opportunity. New differentiated technologies, mostly with a high sustainability profile can expand our available target markets.

在「全球化」方面，我們有 4 項強勁業務合計占我們銷售額的 10%，具備良好定位以實現成長並提升獲利能力。我們正積極投資這些業務。最後，「創新」策略重點為我們帶來最強大的成長催化劑機會。多數具高永續特性的全新差異化技術，可擴大我們可觸及的目標市場。

I've been personally involved in many meetings with our major customers across our core industries. Customer interest and excitement about these technologies is high. Overall, we're encouraged by our second quarter results, which increased our confidence in achieving our full year outlook.

我本人已親自參與多場與核心產業主要客戶的會議。客戶對這些技術的興趣與期待度很高。整體而言，我們對第二季結果感到鼓舞，這也提升了我們達成全年展望的信心。

While there still is uncertainty regarding the pace of a complete normalization, stable customer demand, consumer demand, lower inventories in the value chain and our own order patterns suggest the early stages of demand normalization is underway. We continue to position the company for more resilient operations, with our planning and portfolio shaping actions.

儘管需求完全常態化的速度仍存在不確定性，但穩定的客戶需求與消費者需求、價值鏈中較低的庫存水位，以及我們自身的訂單型態，均顯示需求常態化的早期階段正在進行中。我們將持續透過規劃與投資組合調整行動，使公司營運更具韌性。

And last but certainly not least, we are excited about our potential or the potential of our growth catalysts. We recognize that the success drivers and capabilities in the past may not be the ones we need to drive the growth catalysts of the future. We are taking action to strengthen our capabilities. We have been refining our organization, hiring new talent with different experiences and investing in our people, processes and technologies to reflect a growth mindset.

最後但同樣重要的是，我們對自身的潛力，或我們成長催化劑的潛力感到振奮。我們認知到，過去的成功驅動因素與能力，未必就是推動未來成長催化劑所需的要素。我們正採取行動以強化自身能力。我們持續精進組織、延攬具不同經驗的新人才，並投資於我們的人才、流程與技術，以體現成長型思維。

With that, let me now turn the call over to Kevin to review our Q2 results in more detail. Kevin?

接下來，我把電話會議交給 Kevin，請他更詳細地回顧我們第二季的業績。Kevin？

Thank you, Guillermo, and good morning, everyone. Please turn to Slide 9. Total Ashland sales in the quarter were $575 million, down 5% compared to prior year. Year-over-year quarterly volumes modestly increased for the first time since June 2022, as demand normalizes within the Personal Care and Specialty Additives segments.

謝謝你，Guillermo，各位早安。請翻到第 9 頁投影片。本季 Ashland 總銷售額為 5.75 億美元，較去年同期下降 5%。自 2022 年 6 月以來，年對年季度銷量首次出現小幅成長，因個人護理與特用添加劑部門的需求逐步回歸常態。

These volume gains were partially offset by unfavorable Life Sciences volumes. Pricing was softer in a moderately deflationary raw material environment, primarily within the Intermediates and Specialty Additives segments.

上述銷量成長部分被生命科學部門不利的銷量所抵銷。在原物料處於溫和通縮的環境下，定價較為疲弱，主要發生在中間體與特用添加劑部門。

Gross profit margin increased 20 basis points to 32.9% in the quarter. This improvement was largely due to overall production costs that were favorable in the quarter and product mix. This was partially offset by unfavorable Intermediates pricing versus raw materials.

本季毛利率上升 20 個基點至 32.9%。此改善主要來自本季整體生產成本有利以及產品組合因素；但部分被中間體產品定價相對原物料的不利影響所抵銷。

Favorable production costs were a result of generally lower spend across the segments, partially offset by lower absorption. When excluding key items, SG&A, R&D and intangible amortization costs were $117 million, up from $110 million in the prior year, mainly reflecting variable compensation reset and merit increases.

有利的生產成本主要源於各部門整體支出普遍下降，但部分被較低的吸收率所抵銷。排除關鍵項目後，SG&A、R&D 與無形資產攤銷費用為 1.17 億美元，高於去年同期的 1.10 億美元，主要反映變動薪酬重設與績效調薪。

In total, Ashland's adjusted EBITDA for the quarter was $126 million, down 13% from the prior year. Ashland's adjusted EBITDA margin for the quarter was 21.9%, down from 24% in the prior year. Adjusted EPS, excluding acquisition amortization for the quarter was $1.27 per share, down from $1.43 in the prior year quarter.

整體而言，Ashland 本季調整後 EBITDA 為 1.26 億美元，較去年同期下降 13%。本季調整後 EBITDA 利潤率為 21.9%，低於去年同期的 24%。本季調整後 EPS（不含併購攤銷）為每股 1.27 美元，低於去年同期的每股 1.43 美元。

Now let's review the results of each of our 4 operating segments. Please turn to Slide 11. Within Life Sciences, sustained demand in pharma cellulosics was more than offset by normalized competitive dynamics of pharma PVP, when compared to a strong prior year period.

接下來我們回顧四個營運部門的表現。請翻到第 11 頁投影片。在生命科學部門中，藥用纖維素需求持續穩健，但相較於去年同期的強勁表現，藥用 PVP 的競爭態勢回歸常態，因而抵銷了前述利多。

Nutrition volumes demonstrated moderate sequential improvement but continue to be challenged, when compared to the prior year period due to lower demand, while nutraceutical sales remained strong. Overall pricing for Life Sciences was modestly lower. Life Sciences sales declined by 8% to $222 million. Adjusted EBITDA decreased by 12% to $66 million, primarily reflecting the lower PVP sales volumes and unfavorable product mix, partially offset with favorable pricing versus raw materials. Adjusted EBITDA margin decreased 160 basis points to 29.7%.

營養品銷量較上一季呈現溫和改善，但與去年同期相比仍面臨挑戰，主因需求較低；而營養保健品（nutraceutical）銷售仍維持強勁。生命科學整體定價小幅走低。生命科學銷售額下降 8% 至 2.22 億美元。調整後 EBITDA 下降 12% 至 6,600 萬美元，主要反映 PVP 銷量下降與不利的產品組合，部分由相對原物料有利的定價所抵銷。調整後 EBITDA 利潤率下降 160 個基點至 29.7%。

Please turn to Slide 12. Stronger demand positively impacted Personal Care volumes within most end markets. Revenue growth was most pronounced in the APAC region and Europe. Oral Care sales were also positively impacted by order timing with a key customer, which is expected to result in lower buying in Q4, before normalizing again in Q1 of next year.

請翻到第 12 頁投影片。需求轉強對個人護理在多數終端市場的銷量帶來正面影響。營收成長最顯著的地區為亞太（APAC）與歐洲。口腔護理銷售亦受一位主要客戶的下單時點影響而增加；預期這將導致第四季採購量較低，之後在明年第一季再度回歸常態。

While sequentially improving in the quarter, our Avoca business remains challenged, as customers moved from plant-based to lower-cost bio-based materials. We continue to assess opportunities to improve the underperformance of this business line. Overall pricing for Personal Care was moderately lower.

儘管本季較上一季改善，我們的 Avoca 業務仍面臨挑戰，因客戶從植物性材料轉向成本較低的生物基材料。我們持續評估改善此業務線表現不佳的機會。個人護理整體定價溫和走低。

Personal Care sales increased by 1% to $169 million Personal Care sales for the quarter, excluding Avoca were up high single digits year-over-year. Adjusted EBITDA increased 29% to $45 million, primarily reflecting increased sales volumes, favorable product mix and production costs, partially offset with variable compensation reset.

個人護理本季銷售額成長 1% 至 1.69 億美元；若排除 Avoca，個人護理銷售額年對年成長達高個位數百分比。調整後 EBITDA 成長 29% 至 4,500 萬美元，主要反映銷量增加、有利的產品組合與生產成本，部分被變動薪酬重設所抵銷。

Favorable production costs were a result of lower spend and higher absorption. Adjusted EBITDA margin increased 560 basis points to 26.6%.

有利的生產成本來自較低支出與較高吸收率。調整後 EBITDA 利潤率上升 560 個基點至 26.6%。

Please turn to Slide 13. Stronger demand positively impacted Specialty Additives volumes within coatings and Performance Specialties partially offset by lower energy end market volumes. Sales growth versus the prior year was most pronounced in the APAC region and Europe.

請翻到第 13 頁投影片。需求轉強對塗料與性能特種品（Performance Specialties）領域的特用添加劑銷量帶來正面影響，但部分被能源終端市場銷量下降所抵銷。相較去年同期，銷售成長最顯著的地區為亞太（APAC）與歐洲。

Overall pricing for Specialty Additives was lower, primarily reflecting increased competition in APAC, but was mostly offset by favorable raw materials. For the quarter, Specialty Additives sales declined by 2% to $157 million. Adjusted EBITDA declined by 21% to $27 million, primarily reflecting unfavorable production costs moderately unfavorable pricing versus raw material and variable compensation reset. Unfavorable production costs were a result of lower spend more than offset by lower absorption. Adjusted EBITDA margin declined by 390 basis points to 17.2%.

特用添加劑整體定價走低，主要反映亞太地區競爭加劇，但多數被有利的原物料因素所抵銷。本季特用添加劑銷售額下降 2% 至 1.57 億美元。調整後 EBITDA 下降 21% 至 2,700 萬美元，主要反映不利的生產成本、相對原物料略為不利的定價，以及變動薪酬重設。不利的生產成本係因支出下降的利多被較低吸收率所抵銷且影響更大。調整後 EBITDA 利潤率下降 390 個基點至 17.2%。

Please turn to Slide 14. Intermediates reported sales of $40 million, down 22% compared to the prior year, driven by broadly lower pricing and captive volumes. Intermediates reported adjusted EBITDA of $12 million, a 30% EBITDA margin compared to $20 million in the prior year, primarily reflecting lower pricing.

請翻到第 14 頁投影片。中間體銷售額為 4,000 萬美元，較去年同期下降 22%，主要由於整體定價走低與自用（captive）銷量下降。中間體調整後 EBITDA 為 1,200 萬美元，EBITDA 利潤率為 30%；去年同期為 2,000 萬美元，主要反映定價較低。

Please turn to Slide 15. Ashland continues to have a very strong financial position. As of the end of March, we had cash on hand of $439 million with total available liquidity of roughly $1 billion. Our net debt was $889 million, which is about 2.2 turns of leverage. We have no floating rate debt outstanding, no long-term debt maturities for the next 3 years and all of our outstanding debt is subject to investment-grade style credit terms.

請翻到第 15 頁投影片。Ashland 仍維持非常強健的財務狀況。截至 3 月底，我們持有現金 4.39 億美元，總可用流動性約 10 億美元。淨負債為 8.89 億美元，槓桿約為 2.2 倍。我們沒有任何浮動利率債務未償，未來 3 年亦無長期債務到期，且所有未償債務均適用投資等級風格的信用條款。

We have $900 million remaining under the current Evergreen share repurchase authorization. Our balanced and disciplined capital allocation approach has deployed $1.05 billion to share repurchases and retired 11.1 million shares since June 2021. We are continuing to invest in our existing businesses and technology platforms to grow organically, while pursuing our strategy of targeted bolt-on M&A opportunities focused on Pharma, Personal Care and Coatings.

在現行 Evergreen 股票回購授權下，我們尚餘 9 億美元額度。我們採取均衡且嚴謹的資本配置方式，自 2021 年 6 月以來已投入 10.5 億美元進行股票回購，並註銷 1,110 萬股。我們將持續投資既有業務與技術平台以推動有機成長，同時推進以製藥、個人護理與塗料為重點的策略性小型併購（bolt-on M&A）機會。

Please turn to Slide 16. Ashland prudently managed production and inventory levels as we monitored the normalization of demand. Inventory levels have decreased $180 million, when compared to the prior year quarter and $38 million sequentially. Our actions should better position us for more resilient performance and profit momentum across demand scenarios as the year progresses.

請翻到第 16 頁投影片。Ashland 在觀察需求回歸常態的同時，審慎管理生產與庫存水位。相較去年同期，本公司庫存水位已降低 1.8 億美元，較上一季亦降低 3,800 萬美元。隨著年度推進，我們的作為將使公司在不同需求情境下更具韌性，並更有利於維持績效與獲利動能。

Overall, ongoing free cash flow for the quarter was $4 million and $70 million fiscal year-to-date. For the fiscal year, we expect to generate a free cash flow conversion of approximately 50%. Our progressive dividend policy remains an important part of our capital allocation strategy and reflects our confidence in the company's long-term profitable growth outlook.

整體而言，本季持續性自由現金流為 400 萬美元，會計年度迄今為 7,000 萬美元。就本會計年度而言，我們預期自由現金流轉換率約為 50%。我們的漸進式股利政策仍是資本配置策略的重要一環，並反映我們對公司長期獲利成長前景的信心。

Ashland has grown its annual dividend every year since 2009, compounding at 18% per year during that time. We target an annual dividend payout ratio of approximately 30% of adjusted income from continuing operations over the long term and are committed to increase the dividend annually as we've demonstrated.

Ashland 自 2009 年以來每年皆提高年度股利，期間年複合成長率為 18%。長期而言，我們目標將年度股利支付率維持在持續營運調整後收益的約 30%，並承諾如同過往所展現的，逐年提高股利。

With that, I will now provide an update on the execute pillar of our strategic priorities in addition to an updated outlook.

接下來，除更新展望外，我也將就我們策略優先事項中的「執行」支柱提供最新進度。

Please turn to Slide 18. We continue to have 4 primary portfolio actions underway. The nutraceutical sales process is ongoing and we continue to expect a signing and closing within this fiscal year.

請翻到第 18 頁投影片。我們目前仍有 4 項主要的投資組合行動在進行中。營養保健品（nutraceutical）出售流程仍在推進，我們仍預期將於本會計年度內完成簽約與交割。

CMC production has been shut down at Hopewell and inventory levels are being drawn down while we migrate select production volumes into our Alizay France, manufacturing facility. We have also optimized industrial MC by consolidating production capacity in Doel, Belgium.

Hopewell 的 CMC 生產已停工，庫存水位正逐步去化，同時我們將部分生產量移轉至法國 Alizay 製造廠。我們也透過將產能集中至比利時 Doel，來優化工業用 MC。

As a result, Ashland will be reducing its volume exposure to several lower value, more cyclical industrial segments, including the construction end market. Ashland will continue to operate its remaining MC production unit at Doel to grow in higher-value segments.

因此，Ashland 將降低在若干價值較低、景氣循環性較高的工業領域之銷量曝險，包括建築終端市場。Ashland 將持續在 Doel 營運其剩餘的 MC 生產單元，以在更高價值的領域成長。

Our CMC and MC actions led to $27 million of accelerated depreciation and $20 million in restructuring and separation costs for the quarter. Ashland continues to advance its work to improve the productivity of its HEC business and specific actions will be communicated in due course. We are committed to act with appropriate urgency to deliver on our commitments, including the reduction of all stranded costs to drive an EBITDA neutral outcome and improve overall margins for the company.

本季我們的 CMC 與 MC 行動導致 2,700 萬美元的加速折舊，以及 2,000 萬美元的重整與分離成本。Ashland 仍持續推進提升 HEC 業務生產力的工作，具體措施將於適當時機對外說明。我們承諾以適當的緊迫感採取行動，以履行承諾，包括降低所有擱置成本（stranded costs），以達成 EBITDA 中性結果並提升公司整體利潤率。

In summary, all portfolio actions are on track to deliver a more resilient portfolio with stronger performance by the end of calendar year 2024.

總結而言，所有投資組合行動均按計畫推進，預期在 2024 年底前打造更具韌性且表現更強的投資組合。

Please turn to Slide 19. As we look ahead, the ongoing question is the timing and magnitude of demand normalization. We recognize that our 2023 baseline was subdued on the heels of supply constraints and overstocking followed by a significant destocking. Understanding end market trends is critical to forecasting the recovery.

請翻到第 19 頁投影片。展望未來，持續的問題在於需求回歸常態的時間點與幅度。我們認知到，2023 年的基期偏弱，係因供應受限與過度備貨之後，出現顯著去庫存。掌握終端市場趨勢對於預測復甦至關重要。

End market demand has remained stable and resilient. As Guillermo mentioned, our current demand patterns and market intelligence suggests demand normalization is continuing. Even under a flattish end market demand outlook, we expect to grow from our 2023 baseline, as highlighted on the right side of the chart.

終端市場需求一直保持穩定且具韌性。如 Guillermo 所提到，我們目前的需求型態與市場情報顯示，需求常態化仍在持續。即使終端市場需求展望偏平，我們仍預期將以 2023 年為基準實現成長，如圖表右側所強調。

Of course, demand evolution in the coming months will further narrow the range of recovery scenarios for the full year. In the near term, we've had a good start to the quarter and we're expecting this trend to continue with second half year-over-year revenue growth to be high single digits to low double digits, excluding portfolio optimization actions. Our current full year forecast reflects demand normalization throughout the remainder of our fiscal year and does not contemplate customer restocking.

當然，未來幾個月的需求演變將進一步縮小全年復甦情境的範圍。短期而言，本季開局良好，我們預期此趨勢將延續；在不含投資組合優化行動的情況下，下半年年對年營收成長預估為高個位數至低雙位數。我們目前的全年預測反映在本財政年度剩餘期間的需求常態化，且未將客戶補庫存納入考量。

Please turn to Slide 20. Personal Care and Specialty Additives are expected to benefit from demand normalization with favorable second half comps. Difficult Life Sciences comps are expected to improve as the year progresses. We are expecting softer overall pricing, mostly offset with raw material deflation, excluding Intermediates.

請翻到第 20 頁投影片。個人護理與特殊添加劑預期將受惠於需求常態化，且下半年比較基期有利。生命科學較為艱難的比較基期預期將隨著年度推進而改善。我們預期整體定價將較為疲弱，但多數將由原物料通縮所抵銷（不含中間體）。

We expect significant year-over-year absorption favorability as production is forecasted to normalize, and we compare against last year's inventory corrective actions. Sequentially, Specialty Additives is expected to demonstrate continued margin growth as production increases to align with improved seasonal demand.

我們預期年對年吸收差異將顯著有利，因為產量預測將回歸常態，且我們將與去年庫存修正行動相比。就季對季而言，隨著產量提升以配合改善的季節性需求，特殊添加劑預期將展現持續的利潤率成長。

Lastly, the portfolio optimization activities are expected to generate 200 to 250 basis points of adjusted EBITDA margin expansion at full realization in fiscal '25 and '26. For the fiscal third quarter, the company expects sales in the range of $560 million to $580 million and adjusted EBITDA in the range of $138 million to $148 million. For the full year, we now expect sales in the range of $2.150 billion to $2.225 billion and adjusted EBITDA in the range of $470 million to $500 million.

最後，投資組合優化活動在於 2025 與 2026 財年完全實現時，預期可帶來 200 至 250 個基點的調整後 EBITDA 利潤率擴張。就第三財季而言，公司預期銷售額介於 5.60 億至 5.80 億美元，調整後 EBITDA 介於 1.38 億至 1.48 億美元。就全年而言，我們目前預期銷售額介於 21.50 億至 22.25 億美元，調整後 EBITDA 介於 4.70 億至 5.00 億美元。

Key risks and opportunities are listed on the slide. Demand recovery, variability in plant loading and price versus raw materials continue to be most critical for the full year financial results.

投影片列出了主要風險與機會。需求復甦、工廠負載率的波動，以及價格相對原物料的變動，仍是影響全年財務結果最關鍵的因素。

And now let me turn the call back to Guillermo to provide an update on our strategic priorities. Guillermo?

接下來我把電話交回給 Guillermo，請他更新我們的策略優先事項。Guillermo？

Thank you, Kevin. Please turn to Slide 22. Our strategic priorities remain unchanged and continue to guide our actions, investments and profitable growth expectations. As we have discussed before, the priorities include: execute, globalize, innovate and acquire.

謝謝你，Kevin。請翻到第 22 頁投影片。我們的策略優先事項維持不變，並持續引導我們的行動、投資與獲利成長預期。如同先前討論，這些優先事項包括：執行、全球化、創新與併購。

As Kevin shared, we're making good progress on our execute priorities and the resulting impact will further strengthen Ashland's financial resilience. Our globalize and innovate priorities are expected to serve as a growth catalyst, extending and expanding improved results from demand normalization and the portfolio optimization actions.

如 Kevin 所分享，我們在「執行」優先事項上進展良好，其帶來的影響將進一步強化 Ashland 的財務韌性。我們的「全球化」與「創新」優先事項預期將成為成長催化劑，延伸並擴大需求常態化與投資組合優化行動所帶來的改善成果。

We are pleased to report that the Ashland team is making progress in both areas.

我們很高興報告，Ashland 團隊在這兩個領域都在取得進展。

Please turn to Slide 23. Activities underway to globalize four of our extremely attractive business lines, which currently represent 10% of our sales. They are injectables, OSD tablet film coatings, biofunctionals and preservatives; two in Pharma, two in Personal Care. We continue to make progress in our globalization efforts for these profitable growth businesses. In Pharma, the injectable business continues to make progress, expanding the innovation project pipeline across early-, mid- and commercial-stage projects.

請翻到第 23 頁投影片。我們正推動四條極具吸引力的業務線全球化，目前合計約占我們銷售額的 10%。它們分別是：注射劑、OSD 錠劑薄膜包衣、生物功能性成分與防腐劑；其中兩項屬於製藥、兩項屬於個人護理。我們在這些高獲利成長業務的全球化工作上持續取得進展。在製藥方面，注射劑業務持續推進，並在早期、中期與商業化階段專案中擴大創新專案管線。

During the last year, we have grown our pipeline of injectable projects by 50%. Although starting from a small base, our Injectable business performance is nearly 100% ahead of our first half expectations for this year and 180% above prior year.

過去一年，我們的注射劑專案管線成長了 50%。雖然起點基數不大，但我們的注射劑業務表現較今年上半年預期高出近 100%，且較去年同期高出 180%。

We continue to invest in both technical and manufacturing capabilities and expect to inaugurate our new Ireland facility this year in Q4. The OSD film coatings business continues to globalize its manufacturing and technical footprint to enhance its ability to address local needs. During the quarter, we successfully acquired land in India to build out our OSD film coatings business, infrastructure in a key region.

我們持續投資於技術與製造能力，並預期今年第四季將為愛爾蘭新廠揭幕。OSD 薄膜包衣業務持續全球化其製造與技術據點，以提升滿足在地需求的能力。本季我們成功在印度取得土地，將在關鍵區域建置 OSD 薄膜包衣業務的基礎設施。

We're also starting the process of converting an existing nutrition site in Brazil to support OSD coatings and in addition to support our biofunctionals business. This conversion is a great example of repurposing assets to be more efficient with capital and speed to market to enable growth. And we're innovating with an exciting pipeline of technologies that will provide increased productivity to our customers.

我們也開始將巴西一處既有營養品廠址轉換，以支援 OSD 包衣，並同時支援我們的生物功能性成分業務。這項轉換是資產再利用的絕佳例子，可更有效率地運用資本並加快上市速度以帶動成長。同時，我們正以令人振奮的技術管線進行創新，將為客戶帶來更高的生產力。

Shifting to Personal Care, biofunctionals continues to innovate well, leading the Personal Care segment and new product introduction revenue this year. We have also experienced the recovery of sales into China, an important market and the location of our newly commissioned production facility. We will now be able to innovate and produce locally for our customers. We expect this business to maintain strong growth momentum.

轉到個人護理方面，生物功能性成分持續展現良好的創新能力，今年在個人護理事業部與新產品導入營收方面居於領先。我們也看到對中國的銷售正在復甦；中國是重要市場，也是我們新投產製造設施所在地。我們現在將能為客戶在地創新並在地生產。我們預期該業務將維持強勁的成長動能。

The Preservatives business is advancing several projects to optimize our manufacturing and supply chain to reduce overall costs, enabling local supply and further support continued share gains. We're also continuing to innovate, expanding our natural actives portfolio, as well as advancing new process technology to improve productivity.

防腐劑業務正推進多項專案，以優化製造與供應鏈、降低整體成本，進而實現在地供應並進一步支持持續的市占提升。我們也持續創新，擴大天然活性成分產品組合，同時推進新的製程技術以提升生產力。

All four business lines took steps to accelerate globalization activities and remain hyper focused on implementing their respective business plans to deliver highly accretive margins and growth for the company.

這四條業務線皆已採取措施加速全球化活動，並持續高度聚焦於落實各自的業務計畫，以為公司帶來高度增益的利潤率與成長。

Please turn to Slide 24. Innovation is a fundamental component of our growth strategy. Underscored in the video on the onset of the webcast, Ashland's new leading scalable technology platforms, paired with market leadership is at the core of our business model. We are hyper-focused on executing our innovation strategy, launching new products and engaging customers.

請翻到第 24 頁投影片。創新是我們成長策略的基本要素。如同網路直播開場影片所強調，Ashland 全新的、具領先且可擴展的技術平台，結合市場領導地位，是我們商業模式的核心。我們高度聚焦於執行創新策略、推出新產品並與客戶互動。

As we indicated in the last call, we have launched our first super wetters targeting coatings, and we will be launching new variants targeting other markets. We have launched several liquid cellulose+ products and are now developing new products targeting Asia and Latin America as well as exploring the value of this technology in Personal Care applications.

如同我們在上次電話會議所指出，我們已推出首款針對塗料市場的超級潤濕劑，並將推出針對其他市場的新變體。我們已推出多款液態 cellulose+ 產品，並正開發針對亞洲與拉丁美洲的新產品，同時探索該技術在個人護理應用中的價值。

In bioresorbable polymers, we currently have a pipeline of over 160 customer projects and we expect the pipeline to continue to grow, as we establish commercial traction on sales from recently launched products, such as Viatel and Vialose. Our transformed vegetable oil or TVO technology has probably received the highest level of interest across our customer base given its performance, functional tunability, and sustainability profile.

在可吸收聚合物方面，我們目前擁有超過 160 個客戶專案的管線，且隨著我們對近期推出產品（如 Viatel 與 Vialose）的銷售建立商業牽引力，我們預期管線將持續成長。我們的轉化植物油（TVO）技術，因其性能、功能可調性與永續特性，可能在客戶群中獲得最高程度的關注。

I've personally been involved in many of the customer meetings, and it's truly exciting to see the enthusiasm about the technology and the interest in collaborating with us to develop this technology across multiple markets and applications.

我本人親自參與了許多客戶會議，看到大家對這項技術的熱情，以及希望與我們合作、在多個市場與應用中共同開發這項技術的興趣，確實令人振奮。

Based on additional developments we've made on TVO, I'm also very excited about the opportunities TVO may open for Ashland in existing high-volume, high-value application. We recognize that innovation can be more long term in nature, but as we launch more products, we expect to gain commercial momentum, as well as validate the value of these exciting new technology platforms. Our current focus is on developing several joint development agreements or JDAs with key industry leaders.

基於我們在 TVO 上取得的進一步進展，我也非常期待 TVO 可能為 Ashland 在既有的高量、高價值應用中開啟的機會。我們理解創新本質上可能較偏長期，但隨著我們推出更多產品，我們預期將獲得商業動能，並驗證這些令人振奮的新技術平台的價值。我們目前的重點是與關鍵產業領導者建立數項共同開發協議（JDA）。

Please turn to Slide 25. In closing, we will stay on strategy, maintain operating and capital allocation discipline and take appropriate actions to drive fiscal year 2024 performance. We are investing in our innovate and globalized strategy while increasing customer innovation engagement to advance our growth capabilities. We are leveraging the opportunity to refine the portfolio and improve our overall quality and focus on the big three businesses.

請翻到第 25 頁投影片。最後總結，我們將堅守策略，維持營運與資本配置紀律，並採取適當行動以推動 2024 財年表現。我們在投資創新與全球化策略的同時，也提升與客戶的創新互動，以強化成長能力。我們正把握機會精煉投資組合、提升整體品質，並聚焦於三大核心業務。

We're encouraged by the second quarter momentum, and we believe we are poised to capitalize on continued improvement in demand trends, demonstrating continued progress in our normalizations, resiliency in our business portfolio and the value of our growth catalyst themes will be key going forward. We are confident in the quality and resilience of our strategy and business.

我們對第二季的動能感到鼓舞，並相信我們已蓄勢待發，可把握需求趨勢持續改善所帶來的機會。展現我們在常態化進程上的持續進展、業務投資組合的韌性，以及成長催化主題的價值，將是未來的關鍵。我們對策略與業務的品質與韌性充滿信心。

I want to thank the Ashland team once again for their leadership and proactive ownership of the businesses in a dynamic environment. Thank you for your time. And Daniel, let's move to Q&A.

我想再次感謝 Ashland 團隊在動態環境中的領導力，以及對各項業務的主動承擔。謝謝各位的時間。Daniel，我們進入問答環節。

(Operator Instructions)

（接線員指示）

Our first question comes from Michael Sison with Wells Fargo.

我們的第一個問題來自 Wells Fargo 的 Michael Sison。

Nice start to the year. When you think about the second half run rate and how you grow that into 2025. Is that the best way to think about sort of the growth or where your EBITDA margin should be as we head into '25?

今年開局不錯。當你思考下半年的運行水準，以及如何把這個成長延伸到 2025 年時，這是否是看待成長、或我們邁入 2025 年時 EBITDA 利潤率應落在何處的最佳方式？

If you just look the 3 points that we made on normalized quality of our portfolio and then the growth catalyst. The rest of the year, normalization is going to be the biggest driver of our performance. So we are seeing this as the higher seasonal part of the year. So the demand is working out as expected. So we should be seeing that increase in revenue and proportional gross profit.

如果你只看我們提到的三點：投資組合的常態化品質，以及成長催化因素。今年剩餘時間，常態化將是我們表現的最大驅動力。我們把這段期間視為一年中季節性較強的部分，因此需求如預期般發展。因此我們應會看到營收增加，以及相應的毛利增加。

But the bigger issue is going to be obviously our loading of our plants as that volume comes in, that's sort of the projection. So most of the year, it's about normalization and about managing price versus raw materials to balance out any adjustments in the industry. As we move forward, then the other catalysts really take a forward look.

但更大的議題顯然會是隨著量進來，我們工廠的負載率如何提升，這就是預測的核心。因而今年大部分時間，重點在於常態化，以及管理價格相對原物料的變動，以平衡產業中的任何調整。隨著我們往前走，其他催化因素才會更偏向中長期的展望。

Most of our customers, if you look at our end markets, are expecting more resilience. You have a few customers that were impacted a little bit more that are actually coming out with more positive results in their specific businesses.

我們的大多數客戶，如果你看我們的終端市場，都期待更高的韌性。也有少數客戶受到的影響稍微大一些，但他們在各自的業務中實際上正呈現更正面的結果。

Right. And then just a quick follow-up on Avoca and the challenges there. What do you think the strategic plan for that will be going forward?

了解。接著快速追問一下 Avoca 以及那邊的挑戰。你認為未來的策略規劃會是什麼？

That's a good question, Mike. I mean we've talked about this for a long time now. This business has been challenged since 2018, '19. I think the issue is some of our customers have moved to bio-based technology. We had a big impact a few years ago when that process was taking place.

這是個好問題，Mike。我們其實已經談這件事很久了。這項業務自 2018、2019 年以來就一直面臨挑戰。我認為問題在於我們的一些客戶已轉向生物基技術。幾年前在那個轉換過程發生時，我們受到很大的影響。

The last few years with the shortages, I think we were able to stabilize the business. I think now as things normalize in terms of everybody's capacity and where they're going. I think that we expect that trend to continue on moving to lower-cost bio-based production. So we're working through what we want to do with that part of the portfolio, as we said in the last call. We don't have any more specific details to share at this point in time, but it's something that's on our radar screen.

過去幾年因為供應短缺，我認為我們得以穩定這項業務。現在隨著各方產能與走向逐步正常化，我們預期轉向更低成本的生物基生產這個趨勢會持續。因此我們正在評估這一塊產品組合要怎麼處理，正如我們在上次電話會議所說。目前沒有更具體的細節可以分享，但這件事在我們的關注範圍內。

And our next question comes from Laurence Alexander with Jefferies.

下一個問題來自 Jefferies 的 Laurence Alexander。

First, just on the inventory cycle at the customers, to what degree are you getting feedback that customers feel they will need to rebuild or adjust inventory levels? Are there any end market channels that you see kind of more chance of a restock cycle in 2025?

首先，關於客戶端的庫存循環，你們收到的回饋顯示客戶覺得需要重建或調整庫存水位的程度如何？是否有任何終端市場通路，你們認為在 2025 年更可能出現補庫存循環？

No, on that question, I think it's more of the normalization, as we said in our call. The destocking is over. I mean, there might be a customer here or there. But in the big picture, it's about getting now to their demand and they sell a unit, they got to buy a unit, just to maintain the current appropriate inventory levels.

就這個問題而言，我認為更多是我們在電話會議中提到的正常化。去庫存已經結束了。當然可能零星有個別客戶還在調整，但從大局來看，現在是回到他們的需求節奏：他們賣出一個單位，就得買進一個單位，以維持目前適當的庫存水位。

I think what will change is as their sales change, right now, most of the projections are more flattish, but as there a sales change, their days of inventory, I think that's when we'll see a little bit more restocking. But I assume that, that will be more of a 2025 issue. So the focus should be more on normalization. That convergence of our demand to their demand is the big impact at this point in time.

我認為會改變的是他們的銷售變化。眼下多數預測較為持平，但當銷售出現變化時，他們的庫存天數也會跟著調整，我想那時我們會看到更多補庫存。不過我推測那會更像是 2025 年的議題。因此重點應放在正常化：我們的需求與他們的需求之間的收斂，是目前最大的影響。

And then related to that, are you seeing kind of a shift by customers towards pulling forward R&D cycles because now they have more flex time available as demand trends and inventory levels kind of that volatility settles out? Or can you just characterize like how much demand pull you have for just reformulation adaptation, innovation, not just in the new growth platform just across the portfolio.

接著相關地，隨著需求趨勢與庫存水位的波動逐步收斂、客戶有更多彈性時間，你們是否看到客戶把研發週期往前拉？或者你能否描述一下：除了新成長平台之外，就整個產品組合而言，針對配方重整／調整、創新等，你們看到的需求拉動有多大？

Yes. I would split it up demand pull of things mean people moving forward on the normal business. I don't think that's going to change so much. I do think your point on the innovation, that's what excites us, and I think we've advanced pretty well. So as people start to reformulate.

是的。我會把它拆開來看：就一般業務的需求拉動而言，人們推進正常業務的節奏，我不認為會有太大改變。我確實認為你提到的創新才是讓我們興奮的地方，而且我覺得我們推進得相當不錯。因此當大家開始進行配方重整時……

If you look at the last few years, most of our customers' labs. If you look at 2021, '22, they were trying to find alternative raw materials, managing costs, reformulating so labs weren't necessarily in their peak innovation. Momentum. I think now as things normalize for them to, there's more stability in supply. We will get more into that cadence.

如果你看過去幾年，我們大多數客戶的實驗室——以 2021、2022 年為例——主要是在尋找替代原料、管理成本、進行配方重整，所以實驗室不一定處於創新動能的高峰。我認為現在隨著他們的情況正常化、供應更穩定，我們會回到那樣的節奏。

And I do think there is some more built-up interest in accelerating the innovation. I can say we've been visiting all our major customers, introducing in all the industries, Pharma, Personal Care and Coatings, introducing the new technology platforms, very high level of interest, not just in the technology, but you can see that interest in, hey, getting back to innovation, they want to grow, they want to launch their new products. So it's a great timing for us to be introducing new products.

而且我確實認為，市場對加速創新有一些累積的興趣。我可以說，我們一直在拜訪所有主要客戶，跨各產業——製藥、個人護理與塗料——介紹新的技術平台，興趣非常高，不僅是對技術本身；你也能看到那種「回到創新」的意願：他們想成長、想推出新產品。所以對我們來說，現在導入新產品的時機非常好。

And I do think that we'll see a wave in 2025 of more new products, new formulated products. and that whole theme of sustainability. Now I would say performance with sustainability, not just sustainability on its own is going to be the big driver. Can the industry move to more equal or better performing, more sustainable products. And I think we're very well positioned for that.

我也認為在 2025 年我們會看到一波更多新產品、更多新配方產品的推出，以及整個永續主題。不過我會說，驅動因素將是「兼具性能的永續」，而不只是單純的永續：產業能否轉向性能相當或更好、同時更永續的產品。我認為我們在這方面的布局非常到位。

Our next question comes from David Begleiter with Deutsche Bank.

下一個問題來自德意志銀行（Deutsche Bank）的 David Begleiter。

Just in Specialty Additives, what are you seeing on pricing trends in this business and potentially going forward?

在 Specialty Additives（特用添加劑）方面，你們在這項業務看到的定價趨勢如何？以及未來可能的走向？

I think as we saw in the inflationary time, just as a reminder, when inflation came up, we moved on pricing, but we didn't really expand margins. We sort of kept them whole. Most of the improvement in 2021, '22 was mix actions that we took.

我認為如同我們在通膨期間所看到的，提醒一下：當通膨上來時，我們有調整價格，但並沒有真正擴大毛利率，我們大致是把毛利率維持住。2021、2022 年的大部分改善其實來自我們採取的產品組合（mix）措施。

I think as we look at the slowdown in the economy and now just competitive pressures, probably near term, a little bit of pressure, especially in Asia, Latin America, where you see a little bit more aggressiveness in different players trying to gain share in this environment. But I think the normalization trends longer term, we expect them to go to trend, which is we'll move maintain margins and keep the pricing.

我認為當我們看到經濟放緩以及目前的競爭壓力，短期內可能會有一些壓力，尤其是在亞洲、拉丁美洲，你會看到在這種環境下，不同競爭者為了搶市占而更具侵略性。但從較長期的正常化趨勢來看，我們預期會回到常態：也就是我們會維持毛利率並守住定價。

So it's really going to be just a timing. So far, we've been able to offset the two pretty well. But I think as demand starts picking up, we'll see how raw material trends because I think the issue now is a lot of our, and I look at our own suppliers running slower raw materials, when will they start going up again, as volumes come back.

所以這真的會是時間點的問題。到目前為止，我們能相當好地抵消這兩者。但我認為當需求開始回升時，我們要看原料走勢，因為現在的問題是，我們很多——我也看我們自己的供應商——原料端都在低負荷運轉；當量回來時，他們什麼時候會再開始漲價。

So I think this normalization period is going to be a little bit more choppy in terms of the timing of pricing versus raw material shifts favorable and favorable. But the longer term, we don't expect any big change in the long-term dynamics on the pricing side.

因此我認為在這段正常化期間，定價與原料變動的時間差會比較顛簸，可能時而有利、時而不利。但長期而言，我們不預期定價面的長期動態會有任何重大改變。

Very good. And just on volumes, what do you expect volumes to be up year-over-year in Q3?

很好。再問一下出貨量（volumes），你們預期第三季（Q3）出貨量會年增嗎？

We expect volumes to be up across the board in all the businesses. Per Kevin's comments, the PVP and we're lapping some of the key comps from last year. So sales volumes will be increasing. But the bigger thing is not about the demand side, it's about our production side.

我們預期所有業務的出貨量都會全面年增。依 Kevin 的評論，PVP 方面我們也正在對比去年一些關鍵的基期。因此銷售出貨量會增加。但更重要的不是需求端，而是我們的生產端。

There are significant volumes. We haven't given specific numbers and all that, but it is a significant increase. And especially when you compare to last year. If you remember last year, first half, we overproduced. Second half, we took bigger actions to control inventories. You're going to see this is going to be more of a pickup versus the last year that we were in control mode. So it's going to be a quite significant improvement in production volumes. So I think as you look forward, look at both what we're saying in terms of sales volumes, but also production volumes. But Kevin, I don't know if you have any other thoughts on that balance?

出貨量會有顯著提升。我們沒有提供具體數字等等，但確實是顯著增加，尤其是相較去年。你如果記得去年，上半年我們生產過多；下半年我們採取更大的動作來控制庫存。你會看到這次相較去年我們處於「控制模式」時，會更像是回升。因此生產量會有相當顯著的改善。所以往前看時，除了我們對銷售出貨量的說法，也要看生產出貨量。不過 Kevin，我不確定你對這個平衡是否還有其他想法？

Yes. The outlook would imply mid-single-digit volume growth in Q3 year-over-year. And sales, pretty much across the board -- volume growth, the sales growth numbers will be that or maybe a bit better than that on an overall basis for the second half in total.

是的。展望顯示第三季（Q3）出貨量年增大約是中個位數（mid-single-digit）。而銷售方面，基本上各業務都會有出貨量成長；下半年整體的銷售成長數字，會是這個水準或可能略高一些。

Q3 There's a little noise in Q3 and Q4 because the restructuring actions around CMC and MCso top line is a little bit muted. But if you look at it on an overall volume basis for the core business, it should be up about mid-single digits.

第三季（Q3）在 Q3 和 Q4 會有一些雜訊，因為圍繞 CMC 和 MC 的重整行動使得營收端（top line）看起來稍微被壓抑。但如果以核心業務的整體出貨量來看，應該會成長約中個位數。

Our next question comes from Chris Parkinson with Wolfe Research.

下一個問題來自 Wolfe Research 的 Chris Parkinson。

I just want to turn back to the Pharma business. It seems like you're lapping some comps in PVP based on, I guess, a competitor outage a while back. But can you just take a step back and remind us of what you view the normalized growth rate is of that business? It seems like you've had a lot of solid initiatives over the past few years that have been muted by a little bit of noise in Central Asia, even a little bit in Latin America.

我想把話題拉回製藥（Pharma）業務。看起來你們在 PVP 的比較基期上，正在對比先前某個競爭對手停產（outage）所帶來的影響。但你能否退一步，提醒我們你們認為這項業務的常態化成長率是多少？過去幾年你們似乎有很多扎實的推動措施，但被中亞的一些雜訊、甚至拉丁美洲的一些雜訊所掩蓋。

So, can you just remind us of in terms of how we should be thinking about this business, normalized volumes and then potential areas of upside optionality?

所以，你能否提醒我們應該如何看待這項業務：常態化的出貨量，以及可能的上行選擇權（upside optionality）在哪些方面？

Thanks, Chris. If you look at PVP in several dynamics that I would highlight. One, as you said, the last year, some players had outages. So as we said last year, the business was doing great, but the PVP business was a little bit higher and that we expected it to normalize once everybody came back on stream, and this is not a surprise and happening as we speak.

謝謝，Chris。若看 PVP，我想強調幾個動態。第一，如你所說，去年有些業者發生停產。因此我們去年就提到，整體業務表現很好，但 PVP 業務略偏高；我們預期當大家恢復供應後會回到常態，這並不意外，而且正如我們現在所看到的，正在發生。

What's changed, I guess, a little bit is more the China dynamics on exports and pricing, especially in Asia and Latin America. And I think this is not a Pharma necessarily driven issue only. It's more the whole dynamic of the BDO chain, BDO prices being very down, the nonintegrated players being able to buy very cheaply because costs are down and obviously, a lot more pressure on loading their plants and all that.

我想，稍微有些改變的是中國在出口與定價上的動態，特別是在亞洲與拉丁美洲。而且我認為這不一定只是由製藥（Pharma）所驅動的議題。更像是整個 BDO 產業鏈的動態：BDO 價格大幅走低，非一體化業者因成本下降而能以非常便宜的價格採購，當然也對他們提高裝置開工率等帶來更大的壓力。

I think as other markets that we're not even in, but polyurethanes, fibers, all this go up and the core BDO demand and costs go up which is probably going to start happening towards back end of this year and more into next year. When that part of the demand and the cycle starts normalizing, I think you're also going to see some normalization of competitive activity.

我認為，隨著其他我們甚至未涉足的市場（例如聚氨酯、纖維等）回升，核心 BDO 需求與成本也會上升，這很可能會在今年下半年開始發生，並延續到明年。當那一部分需求與景氣循環開始正常化時，我認為你也會看到競爭行為出現一些正常化。

I think the next few months, we're monitoring this normalization period anytime when there's changes, when you have the most choppiness, volumes coming up, people reacting to trying to load their plants and all that, that's when we're going to see a little bit of the noise. But the longer-term trend line should normalize as the entire value chain cost structure normalizes and volumes normalize.

我認為接下來幾個月，我們會持續觀察這段正常化期間；任何時候只要有變化，波動就會最大——量開始回升、大家為了提高裝置負荷而做出反應等等——那時我們就會看到一些雜訊。但長期趨勢線應該會隨著整個價值鏈的成本結構正常化、以及出貨量正常化而回歸正常。

Chris, if you look at that business historically, it's been low to mid-single-digit growth very consistently. If you eliminate some of the noise over the past couple of years, and we would expect that to be the case going forward, ex any kind of platform innovation technologies in that business that take hold. That would be an accelerator over and above what we would normally see.

Chris，如果你看那個業務的歷史表現，它一直非常穩定地維持在低到中個位數的成長。若把過去幾年的一些雜訊排除，我們預期未來也會是如此——除非該業務中有某種平台式創新技術真正落地並被採用。那將會成為超出我們通常所見的加速器。

We can look forward to that. And then just very quickly, once again, you've gone through a couple of choppy quarters based on the destocking on Personal Care. But Guillermo, behind the scenes for years, you've been working on a lot of new product portfolios. It seems like things are beginning to inflect.

我們可以期待那一點。然後很快再問一次：你們因個人護理（Personal Care）去庫存而經歷了幾個波動的季度。但 Guillermo，這些年你在幕後一直在打造許多新的產品組合。看起來事情開始出現拐點。

I understand we don't get ahead of ourselves. But what as a CEO are you the most enthusiastic about? I mean is it biodegradable, biofunctionals, bioactives, like just when we take a step back, by end market or products, like are there things behind the scenes that you were kind of just thinking about, wow, I'm really optimistic on this, but destockings hold me back a little bit. As I say today, what is your current thought process?

我理解我們不該操之過急。但作為 CEO，你最感到興奮的是什麼？我的意思是，是可生物分解、biofunctionals、生物活性（bioactives）之類的嗎？如果我們退一步看，從終端市場或產品角度來看，幕後是否有一些你一直在想「哇，我對這個真的很樂觀」，但去庫存又讓你稍微受限？就像我今天問的，你目前的思考脈絡是什麼？

So let me take you business by business on that response. I think it is a very important one because a lot of normalization, we're in good core markets, but these catalysts. What I feel good at for our company, the catalysts that we have are significant, especially given our size.

我就按業務逐一回應。我認為這個問題非常重要，因為在許多正常化之中，我們身處良好的核心市場，但還有這些催化劑。就我們公司而言，我覺得我們擁有的催化劑相當可觀，尤其考量到我們的規模。

So they're not just good growth opportunities relative to our size of company to the size of the market opportunities that we have, it's significant. It really can change our future. So if you go through each of the segments, Life Science, we have a very strong portfolio of core technologies, which is stabilizing the PVP.

所以這不只是相對於我們公司規模、相對於我們所面對的市場機會規模而言的「不錯的成長機會」而已，而是很顯著的機會，確實可能改變我們的未來。若逐一看各事業部：在生命科學（Life Science）方面，我們有非常強的核心技術組合，這正在穩定 PVP。

But if you look at all our cellulosics, our Benecel or Klucel, there's great growth opportunities there for the foreseeable future. Our issue there was really making sure that the pipeline for the longer term, that we have that next wave of things that we can start growing. And that's what excites me.

但如果你看我們所有的纖維素產品，例如 Benecel 或 Klucel，未來可預見期間都有很好的成長機會。我們當時真正的課題，是確保長期的產品管線——我們要有下一波可以開始成長的項目。而這正是讓我感到興奮的地方。

If you look at Injectables, we've been working on our bioresorbable polymers, the pipeline. We'll start sharing more when we have our next innovation update, but really exciting pipeline growing higher purity products, new market applications, a lot of great things that just expand our market portfolio.

如果看注射劑（Injectables），我們一直在推進可生物吸收聚合物（bioresorbable polymers）的產品管線。我們會在下一次創新更新時分享更多，但這條管線非常令人振奮：更高純度產品的成長、新的市場應用，很多很棒的事情，能夠擴大我們的市場產品組合。

Our solubilizers are super wetters for them. They're not looking at super wetters or solubilizers opens up opportunities in the injectable area, opens up opportunities in the consumable areas. In bioprocessing and other areas, they use a lot of these things.

我們的增溶劑（solubilizers）以及所謂的超級潤濕劑（super wetters）也是如此。它們不僅用於超級潤濕或增溶，還能在注射劑領域打開機會、在耗材領域打開機會；在生物製程（bioprocessing）及其他領域也會大量使用這些材料。

Same thing with the PH Neutralizer. The TVO really exciting opportunity. If you look at film coatings, some really great development that really can transform our position in the market, and that's a very large segment. It's bigger than the PVP segment, as an example, and we're a small player thereo huge growth opportunity for them.

PH 中和劑（PH Neutralizer）也是同樣情況。TVO 是非常令人興奮的機會。若看薄膜包衣（film coatings），有一些非常出色的開發，確實能改變我們在市場中的地位，而那是一個非常大的細分市場。舉例來說，它比 PVP 細分市場還大，而我們在那裡是小玩家——對我們而言是巨大的成長機會。

And in the Ag business, we have done trials now with both the super wetter for leaf coatings and the oil, the TVO as a binder for seed coatings, great results. We expect to launch both of those because the regulatory reasons will probably start in Brazil in 2025.

在農業（Ag）業務方面，我們已經完成試驗：一是用於葉面包覆的超級潤濕劑，二是將 TVO 作為種子包衣的黏結劑（binder），結果非常好。我們預期會推出這兩項產品；由於法規因素，可能會先在巴西於 2025 年開始。

So all of these are scalable, very significant for the size of our Life Science business, very, very significant, and that's where we're putting our energy and effort.

所以這些都具備可擴展性，對我們生命科學業務的規模而言意義重大、非常非常重大，而這正是我們投入精力與資源的方向。

Personal Care, the shift to sustainability. What we've learned and what we've really looked at is, look, it's not a shift to sustainability. It's about performance. The products our customers want sustainability, but it's got to perform and have a cost profile that is competitive with the current technology.

個人護理方面，大家都在談轉向永續。我們學到、也真正看清的是：這不只是轉向永續，而是關於性能（performance）。客戶確實想要永續，但產品必須有效能，且成本結構要能與現有技術競爭。

It's almost too difficult to make the transition if you're going to double your costs, consumer will not be able to pay this. So we're very excited now with a lot of the new developments, be it the TVO, look at the novel cellulosic starch space, cellulosic-based EO free. The feedback from customers has been incredibly exciting and these technologies because they're tunable, we're going into new skin applications, new hair applications and even new oral care applications, which is a very sizable market for us and we want to rejuvenate it in terms of the technologies. It even opens up opportunities in the household area, just given the performance of these products.

如果成本要翻倍，轉換幾乎太困難，消費者也無法負擔。因此我們對許多新進展感到非常興奮，不論是 TVO，或是新型纖維素-澱粉（cellulosic starch）領域、以纖維素為基礎且不含 EO（EO free）的技術。客戶回饋非常令人振奮；而且這些技術可調性高（tunable），我們正進入新的皮膚應用、新的護髮應用，甚至新的口腔護理應用——這對我們而言是相當大的市場，我們也希望以技術面讓它重新煥發活力。考量到這些產品的性能，它甚至也為家用（household）領域打開機會。

And in coatings, actually, I will tell you the coatings is probably the one that's transformed the most. We have been concentrated on rheology, that's been sort of our core business. We're one of the largest, if not the largest rheology player in coatings, but we're narrow. -Our Coatings business is not like our Life Science and Personal Care that we have a big portfolio. These new platforms actually open the door of a lot of new technologies, the super wetters, sizable markets, the very sizable market. The TVOs, we're taking them into totally different directions. Their dispersions, their film formers. These are things that can enhance TiO2 efficiency. They can be co-binders. I mean, there's a lot of things.

至於塗料（coatings），我會說塗料可能是變化最大的一塊。我們過去一直聚焦在流變（rheology），那算是我們的核心業務。我們是塗料流變領域最大、或至少是最大的玩家之一，但我們的範圍較窄——我們的塗料業務不像生命科學與個人護理那樣擁有龐大的產品組合。這些新平台實際上為許多新技術打開大門：超級潤濕劑，市場很大、非常大；TVO，我們正把它帶往完全不同的方向——分散體（dispersions）、成膜劑（film formers）。這些都能提升 TiO2 的效率，也能作為共黏結劑（co-binders）。我的意思是，可能性很多。

And as you know, in Coatings, there's nothing small. It's a concentrated market of customers. We're well positioned with them. They're very excited about these technologiesso again, we see great growth opportunities. As you've seen, we've made changes in our organization, we're investing. What I was saying in the call, this recognition that the future road for us is not the same as the past road.

而且你也知道，在塗料領域沒有什麼是小市場——客戶集中度很高。我們在這些客戶中定位良好，他們對這些技術非常興奮，所以我們再次看到很好的成長機會。正如你所見，我們已對組織做出調整，也在加大投資。我在電話會議上想表達的是：我們已經認知到，未來的道路不會和過去一樣。

It's different. We need to bring in new skills. It's about innovation growth, it's about engaging our customers differently to really develop. And this is going to be a long-term road. The good news for us is we have the globalize, which can generate near-term growth. And then as we launch some of these new products, I think we'll go over the introduction cycle with our customers.

它會不同。我們需要引進新技能；重點在於創新成長，也在於以不同方式與客戶互動，真正共同開發。這將是一條長期道路。對我們而言的好消息是，我們有全球化（globalize）策略，可以帶來短期成長；接著當我們推出部分新產品時，我認為我們會與客戶一起走過導入週期。

I think getting a few big JDAs with customers is going to be important because some of these products, we don't want to invent it for them. We want them to be part of designing the products that they want for their applications and the interest has been very high. So as you can tell, I'm very excited about this. This is where we're putting our energy, our resources.

我認為，與客戶簽下幾個大型 JDA（共同開發協議）會很重要，因為其中一些產品我們不想替他們「發明」出來；我們希望他們能參與設計他們在其應用中真正想要的產品，而目前的興趣非常高。所以你可以看得出來，我對此非常興奮。這就是我們投入精力與資源的地方。

And frankly, this isn't valued in our valuation. This isn't recognized at all at this point in time. And I think that's a great opportunity and a great catalyst for not just the company's growth but for the valuation growth of Ashland.

坦白說，這些在我們目前的估值中並未被反映，現階段完全沒有被認可。我認為這是一個很好的機會，也是推動不僅公司成長、也推動 Ashland 估值成長的重要催化劑。

Our next question comes from Josh Spector with UBS.

下一個問題來自 UBS 的 Josh Spector。

I wanted to come back to the volume discussion a little bit. And if I just put some numbers out there, you're kind of presenting 2021, as maybe the right baseline, your volumes in the second quarter, you're about 10% below. You have a lot of moving parts in the second half. I guess my math is your exit maybe your 5% volumes going away with essentially 0 to very low profit dollars.

我想再回到出貨量（volume）的討論。如果我先拋出一些數字，你們似乎把 2021 年當作可能較合適的基準；你們第二季的出貨量大約低了 10%。下半年有很多變動因素。我想按我的計算，你們期末（exit）可能會有約 5% 的出貨量消失，而基本上對應的是 0 或非常低的利潤貢獻（profit dollars）。

Does that mean your volumes sequentially improve something like 5%? And where I'm trying to go is if you're saying your end market demand is flat to maybe up versus 2021, is that 5% gap in volumes, basically the amount of reconnection that's left to go versus your guidance? Or would you describe it differently?

那是否代表你們的出貨量按季改善大約 5%？我想追問的是：如果你們說終端市場需求相較 2021 年持平到可能略增，那這 5% 的出貨量差距，基本上就是在你們指引相較之下、尚未完成的「再連結（reconnection）」量嗎？還是你們會用不同方式來描述？

Let me make some comments and Kevin, maybe you want to talk. I think that the issue in responding to that, it's hard to respond at a total level, given just volumes in these businesses where they're additives. You can't compare preservatives or biofunctional volumes to HEC or other areas. So we look at it more segment by segment on what's happening to the volumes because then you can get some distortions.

我先補充幾點，Kevin 你也許可以再說明。我認為要回應這個問題的難點在於：在這些屬於添加劑的業務裡，只用總量（volume）層級很難回答。你不能把防腐劑或生物機能性產品的量拿去跟 HEC 或其他領域相比。所以我們會更偏向逐事業部（segment by segment）去看量的變化，因為用總量看會產生一些失真。

As you said, clearly, the reduction in our portfolio actions will reduce volume, but we're taking out costs, and it wasn't at a significant profit. So I do think sales volume versus production volumes. Sales volumes you're going to see, as Kevin said, some continued increase. And if you look at the high-volume areas for us, PVP, high volume significant from a loading perspective. PVP, HEC, our Benecel and our Klucel lines, all of those were expected to see continued momentum.

如你所說，很明顯，我們投資組合（portfolio）調整的動作會降低出貨量，但我們同時也在移除成本，而且那些業務本來就不是高獲利。我確實認為「銷售量」相對於「生產量」來看，銷售量會如 Kevin 所說持續增加一些。若看我們的高出貨量領域，PVP 在裝置負載（loading）角度是高量且很重要的；PVP、HEC、我們的 Benecel 與 Klucel 產品線，這些都預期會持續保持動能。

We got to get to the normalization, which I would say it's more somewhere in between 2021 type volumes in those areas. 2020, 2021, that we'll start getting that momentum back in and it should be in the mid-single digits once we normalize. So that's the biggest driver. In the other areas, it's volume, but you can't compare the total numbers because the volumes are significantly higher value, lower volume.

我們需要回到常態化（normalization）。我會說在那些領域，常態大概介於 2021 年那種出貨量之間——也就是 2020、2021 年的水準——我們會開始把動能拉回來，而一旦常態化，增幅應該會在中個位數（mid-single digits）。這是最大的驅動因素。其他領域也有量的變化，但你不能用總量數字去比較，因為那邊是「價值更高、量更低」。

Biofunctionals as an example, you don't see it on the volume side, but it's a high price per kilo. That one was significantly down. Some of the major customers were down because of travel and things like that. And China was down significantly, a very important market. So the recovery there will be very important for our volumes.

以生物機能性（Biofunctionals）為例，你在出貨量端不一定看得出來，但它每公斤單價很高。那一塊之前下滑很明顯，部分主要客戶因為旅行等因素而下滑；而中國也大幅下滑，是非常重要的市場。因此那邊的復甦對我們的出貨量會非常重要。

Equally, the Preservative business was also impacted similarly, a lot of the growth that we have in Asia and all that, and that's starting to pick up. You won't see it so much on the total volume lines. But on the revenue line, we expect that to be higher than mid-single, more relative to the performance in the last year, those will pick up much, much more.

同樣地，防腐劑（Preservative）業務也受到類似影響，我們在亞洲的很多成長等都被影響，而現在開始回升。你在總出貨量線上不會看得那麼明顯，但在營收線上，我們預期會高於中個位數，更多是相對於去年表現的回升，會改善得更明顯。

And we can go out segment by segment, but it's very hard to give you just an overall number just given the dynamics and the differences between our business. But Kevin, do you have any other comments you would give?

我們可以逐事業部一一說明，但考量到我們業務之間的動態與差異，要給你一個整體單一數字真的很難。Kevin，你還有其他想補充的嗎？

Yes, sure. Of the restructuring work that we're doing around CMC, MC and obviously, just kind of off to the side the nutraceutical sale. Very little of that has actually had any kind of impact on the volume line, at this point, on an annualized basis, volume going away is probably around 5% of kind of the volumes we've been doing. So we'll see that negative impact. And as that becomes more pronounced, we can certainly call that out so you'll understand what's happening kind of on an ongoing basis, and we'll work to do that.

有，當然。我們在 CMC、MC 周邊所做的重整（restructuring）工作，以及另外一邊的營養保健品（nutraceutical）出售案，到目前為止其實對出貨量線的影響非常小。以年化（annualized）來看，消失的量大概是我們既有出貨量的 5% 左右。所以我們會看到那個負面影響。隨著它變得更明顯，我們也會把它特別點出來，讓你理解持續性（ongoing basis）到底發生了什麼，我們也會努力做到這點。

But again, very little of that has happened yet. We'll start seeing that in Q3. And then obviously, presumably we get the nutraceutical sale closed, which we're confident we will do. Then there will be a more pronounced impact from that. But again, we can call those things out.

但再次強調，目前實際發生的還很少。我們會在第三季（Q3）開始看到。然後很顯然，如果營養保健品出售案如預期完成交割——我們對此很有信心——那對出貨量的影響會更明顯。不過同樣地，我們會把這些因素清楚揭露。

I think another important point is we use the word convergence. And that's truly what it is. Our customers' volumes to the outside world that they sell to have been kind of flat. And obviously, we saw a big, big decline last year with destocking. While that convergence has started and is ongoing we're not there yet, and we're going to continue our expectation anyway is that we will continue to see that ramp throughout the fiscal year.

我認為另一個重點是我們用「收斂（convergence）」這個詞，而那確實就是現況。我們客戶對外部市場的銷售量一直大致持平；而我們去年因為去庫存（destocking）看到非常、非常大的下滑。雖然收斂已經開始且正在進行，但我們還沒完全到位；我們的預期是，在整個會計年度（fiscal year）中會持續看到這個爬升（ramp）。

The absolute timing of when we can put a stake in the ground and call that done remains to be seen. I mean, timing is what it is. Pace has been pretty much what we expected so far, and we're staying really close to our customers. But again, as Guillermo said, things are a little choppy still. And so we expect to continue to see those lines get closer and closer together. Our volumes, matching what our customers have been selling to their customers.

至於什麼時候能夠明確地「插旗」說收斂完成，還有待觀察。時間就是時間。到目前為止，進度（pace）大致符合我們的預期，我們也與客戶保持非常緊密的聯繫。但如 Guillermo 所說，情況仍有些顛簸（a little choppy）。因此我們預期會持續看到兩條線越來越接近：我們的出貨量逐步匹配客戶賣給他們客戶的量。

And then as that happens, to the extent, regular we should grow with them. But that's a timing thing. And it's continuing to happen, and we expect that to continue. And hopefully, by the end of the fiscal year, we'll be pretty much at convergence. But the timing is still a question.

而當那件事發生後，在正常情況下，我們應該會跟著他們一起成長。但那取決於時間點。這個過程仍在持續，我們也預期會繼續。希望在本會計年度末，我們基本上能達到收斂。但時間點仍然是個問題。

That's helpful. I appreciate that. I guess if I kind of build on that more simply, so if we're getting near convergence by the end of the year, it seems like you think things should be normalish than looking at '24. Slide 11, again, 2021, you're presenting as normal, would you expect EBITDA dollars to be above 2021 levels when you normalize thinking about growth, some of the actions you're taking, et cetera?

這很有幫助，謝謝。我想更簡化地延伸一下：如果到年底接近收斂，聽起來你們認為到看 2024 年時，狀況應該會比較接近常態。再看投影片 11，你們把 2021 年呈現為常態；當你們常態化後，考量成長、你們正在採取的一些行動等等，你們預期 EBITDA 金額會高於 2021 年的水準嗎？

Yes. Once we normalize and that normalization, not just in demand, it normalizes our production volumes, we should see that revenue and EBITDA normalization happened, obviously, with taking out some of the portfolio actions that we're doing, which impact the revenue side more than the EBITDA.

會的。一旦我們常態化，而這個常態化不只是需求端，也會讓我們的生產量常態化，我們應該會看到營收與 EBITDA 的常態化回復。當然，同時我們也在做一些投資組合調整，這些動作對營收端的影響會大於對 EBITDA 的影響。

Fiscal '21 EBITDA was $495 million. The midpoint of our outlook is $485 million. So assuming we have the outlook for the full year, things continue as they have been. And as we expect, then yes, for sure, I would expect fiscal '25 EBITDA to be accretive to both '24 and '21.

2021 會計年度的 EBITDA 是 4.95 億美元。我們展望（outlook）的中點是 4.85 億美元。所以假設我們全年展望能達成，且事情如目前與我們預期般持續發展，那麼是的，我確實預期 2025 會計年度的 EBITDA 會相對於 2024 與 2021 都是增益（accretive）。

Our next question comes from John Roberts with Mizuho.

下一題來自 Mizuho 的 John Roberts。

I'll ask just one here. Thanks for the update on the new products, Guillermo, are you ready to give us a vitality index or something to track new products as a percent of sales as a baseline and kind of how we can watch that ramp over the next couple of years?

我這邊只問一題。謝謝你對新產品的更新，Guillermo。你們是否準備好提供一個活力指數（vitality index）或其他指標，讓我們能追蹤新產品占銷售額的比例，作為基準，並觀察未來幾年如何爬升？

Yes. We are working, John. Thanks for the question. We're working on doing an updated date for our innovation update. And at that event, the intent would be to start setting up a tracking mechanism that's clear.

是的，我們正在進行中，John，謝謝你的問題。我們正在籌備一場更新版的創新（innovation）更新活動。在那個活動上，我們的意圖是開始建立一個清楚的追蹤機制。

So for Pharma, what's our pipeline and more of the traditional pharma-type presentation of where we are in the different areas. And probably what we're going to do is look at technologies that we're launching, where are they versus technologies that we're developing because to be honest, some of the newer things.

以製藥（Pharma）來說，我們的產品管線（pipeline）是什麼，以及更傳統的製藥式簡報方式，說明我們在不同領域的進展。我們可能會做的是：看我們正在推出（launching）的技術，與我們正在開發（developing）的技術各自處於什麼位置，因為老實說，有些較新的項目。

So over launching, we know the markets, like we're saying AG or in Personal Care, it's pretty clear where we're going, we can do that. I think there's some other areas - it's really moving fast in our ability to develop new things and it's opening up a lot of new markets. So those will give you probably more updates on the technology where we're looking, why we're excited on the performance.

對於已推出的部分，我們知道市場——像我們提到的農業（AG）或個人護理（Personal Care）——方向很清楚，我們可以這樣呈現。我認為還有一些其他領域——我們開發新事物的能力正在快速提升，也打開了很多新市場。因此我們可能會更多更新技術面：我們在看什麼、為什麼對其表現感到興奮。

So you're going to see probably different types of metrics that we're going to show so that you can gauge commercial momentum versus long-term opportunity and how you want to gauge some of these things. So an example for me would be things we launched a super wetter, we should be able to give you more of the momentum that we're getting there. In TVO, we're developing things for coatings, as an example, that are more multifunctional binder dispersants and things of that nature, those are big markets.

所以你可能會看到我們展示不同類型的衡量指標，讓你可以評估商業動能（commercial momentum）相對於長期機會（long-term opportunity），以及你想如何衡量其中一些事情。對我來說，一個例子是我們推出的超級潤濕劑（super wetter），我們應該能提供更多那邊的動能進展。在 TVO 方面，我們以塗料（coatings）為例正在開發一些產品，屬於更具多功能的黏結劑/分散劑（multifunctional binder dispersants）等，這些都是很大的市場。

So we're very excited about what we're seeing, but those are going to be a little bit longer. We're going to work with our customers in a little bit more detail there. We'll present where we are because I do think those are important perspectives to keep, but it's going to be a little bit longer term slightly. So we'll present that spectrum probably by the end of this fiscal year, we'll do that.

所以我們對目前看到的狀況非常興奮，但那些會需要更長一些時間。我們會與客戶更深入地合作。我們會呈現我們目前的位置，因為我確實認為保留這些視角很重要，但時間軸會稍微偏長期一點。我們大概會在本會計年度結束前呈現這個全貌。

Our next question comes from Mike Harrison with Seaport Research Partners.

下一題來自 Seaport Research Partners 的 Mike Harrison。

Guillermo, I was wondering if you could talk a little bit about the recent changes in segment leadership. It seems like maybe it's kind of a tricky time for both an external as well as internal standpoint. You guys have a lot going on. So what are you doing to help reduce the distraction that might come from a leadership change, again, basically in every segment right now?

Guillermo，我想請你談談最近各事業部領導層的變動。看起來不論從外部或內部角度，這可能都是一個相對棘手的時點。你們現在有很多事情在進行中。那麼，為了降低領導更替可能帶來的分心，你們正在做些什麼？畢竟目前幾乎每個事業部都在發生這種變動。

Right. So thanks for the question, Mike, because I do have gotten some notes on that asking what's happening. So, two different things. The prior changes were purposeful. We were looking, as I said, we're moving in a very different direction. If you look at everything I'm talking is about new technologies, new areas, the company has been focused with certain profiles, certain segments. As an example, beyond rheology, we need experience in other technologies that go into coatings, as an example. It is about growth, and it's just a realization, hey, where we're going, we need to bring in different experience and talent. That's what we're doing. We've been purposeful about that.

沒錯。所以謝謝你的問題，Mike，因為我確實收到一些相關的意見在問到底發生了什麼事。所以，有兩件不同的事情。先前的變動是有意為之。我們在檢視——如我所說——我們正朝著非常不同的方向前進。如果你看我談的所有內容，都是關於新技術、新領域；公司過去聚焦於某些特定的背景與輪廓、某些特定的區隔。舉例來說，除了流變學之外，我們也需要在其他可用於塗料等領域的技術方面具備經驗。這是關於成長，也是一種體認：嘿，我們要去的方向，需要引進不同的經驗與人才。這就是我們正在做的事。我們一直是有計畫、有目的地在推動這些。

You've seen the higher level leadership changes that have been public, but we've been bringing in two new R&D heads for two of our businesses. We're bringing a lot of scientists. We're bringing in new marketing people. There's a lot of other changes behind the scenes that are going, and this is really about the future and where we're going.

你已經看到一些較高層級、對外公開的領導層變動，但我們也在為旗下兩個事業引進兩位新的研發主管。我們正在招募很多科學家，也引進新的行銷人員。幕後還有很多其他變動正在進行，而這一切其實都是為了未來、以及我們要前往的方向。

I'll be very direct on the recent announcement, with our Life Science, that wasn't planned. Ashok got an offer to become CEO of a private equity company. They probably will announce soon wherever he's going to go. It's a good opportunity for him, and we wish him all the best. That was not planned. We're already in the process of hiring. This kind of stuff we hired people. This happens.

我會很直接談最近的公告：關於我們的生命科學（Life Science），那並非原先規劃。Ashok 收到一個邀請，要去一家私募股權公司擔任執行長（CEO）。他們可能很快就會公告他將前往哪裡。這對他來說是個很好的機會，我們也祝福他一切順利。這不是事先規劃的。我們已經在進行招募。這類事情我們也曾經招過人；事情就是會發生。

I've been involved in these kinds of changes. So this is just part of life, and we need to roll with these changes. The Life Science business is very well positioned. They have a clear strategy. If you could hear from my comments, they know where they're going, they're expanding into a lot of new areas. The business is very well positioned, and it's really about bringing in the new leader, and that's already in progress.

我也參與過這類變動。所以這就是人生的一部分，我們必須順勢因應。生命科學事業的定位非常好，他們有清晰的策略。如果你聽我的評論，他們知道自己要去哪裡，也正在擴展到許多新領域。這個事業的定位非常好，重點就是引進新的領導者，而這件事已經在進行中。

All right. And then the other thing I wanted to ask about is the biofunctionals business. You talked a little bit about some of the opportunities for geographic expansion, but it sounds like at least in this quarter, that business was relatively weak. Can you talk about what was driving that weakness and whether you expect improvement in the second half of the year?

好的。接著我想問的另一件事是 biofunctionals（生物機能性）事業。你談到一些地理擴張的機會，但聽起來至少在本季，那個事業相對偏弱。你能談談是什麼造成這種疲弱，以及你是否預期下半年會改善嗎？

So biofunctionals was significantly up, improving sequentially in Q2. We're starting to see that recovery. Some of our major customers are picking up momentum.

所以 biofunctionals 在第二季（Q2）較前一季顯著成長、呈現逐季改善。我們開始看到復甦。一些主要客戶的動能正在回升。

Recent announcement, people seeing greater Asia travel. These are going into more high-end cosmetics. So definitely, we're seeing that with our core customers. China, we have a very good position in China. We're starting to see the recovery there, which comes at a perfect time when we just inaugurated our biofunctionals plant in our Nanjing plant.

最近的情況是，大家看到大亞洲地區的旅行增加。這些產品會用在更高端的化妝品上。所以我們確實在核心客戶那邊看到這點。中國方面，我們在中國的布局非常好；我們開始看到那裡的復甦，而時點也非常剛好，因為我們才剛在南京廠為 biofunctionals 工廠舉行啟用儀式。

So that business is very well positioned. Our new leader, Jim Minicucci, he's already working with his team. We have very focused teams now in both biofunctionals and the preservative business that we want to drive in that globalization. So we have some new resources that we're adding in terms of leadership, in terms of sales and marketing capabilities that we're augmenting and regionalizing.

因此那個事業的定位非常好。我們的新領導者 Jim Minicucci 已經在和他的團隊一起推動。我們現在在 biofunctionals 與防腐劑（preservative）事業都有非常聚焦的團隊，想要推動全球化。因此我們正在增加一些新資源，包括領導力、以及我們正在強化並區域化的銷售與行銷能力。

So a lot of investment, and I think this is a new part of the recovery, like all the other segments. I think the issue there is the volumes are not the driver, the dollars given the value per kilo in these areas are much different from some of the other businesses that we have.

所以有很多投資，而我認為這是復甦的新一環，就像其他所有事業區隔一樣。我認為那裡的問題在於：驅動因素不是量，而是金額——因為這些領域每公斤的價值與我們其他一些事業差異很大。

(Operator Instructions)

（接線員指示）

Our next question comes from John McNulty with BMO.

下一個問題來自 BMO 的 John McNulty。

Maybe one for Kevin. So on the cash flow side, you started out the year at a pretty solid level. And yet it sounds like the cash conversion, I think you were calling for 50%, which you're clearly starting at a better rate than that.

也許問 Kevin 一題。就現金流方面，你們年初的水準相當不錯。但聽起來現金轉換率（cash conversion），我想你們原本是指引 50%，而你們顯然是以比那更好的速度起步。

So I guess what may be different this time in '24 in terms of how cash runs through the year? Is it something about the restructuring? Or is it just the early harvesting in the first half, as you kind of dialed back production or you're just being conservative? I guess how should we be thinking about free cash flow and cash conversion?

所以我想問，2024 年這次在現金於全年流動的節奏上，可能有什麼不同？是跟重整（restructuring）有關嗎？還是只是上半年較早收割，因為你們調降了產量，或只是比較保守？我們應該如何看待自由現金流與現金轉換率？

Yes. For the first half of the year in total. So the March quarter was weaker than prior year. First half of the year, we were at about a 36% conversion rate. We expect full year to be 50%. So on a weighted average basis. So the second half should be stronger, relatively speaking, than the first half, for cash conversion.

是的。就上半年合計來看。3 月季度比前一年弱；上半年我們的轉換率大約是 36%。我們預期全年會是 50%。所以以加權平均來看，下半年在現金轉換上應該會相對比上半年更強。

Cash taxes are a little higher this year than prior year. That's part of the number. But by and large, we're pretty comfortable with the cash conversion. And again, second half tends to be the stronger part of the year, normally anyway. I think the first quarter was somewhat stronger because of the very, very poor incentive payout that we had for fiscal '23 results. We pay those incentives out in the December quarter. And that number was probably $25 million lower than target, let's say. I mean that's what the reset was around $25 million. So that's part of the driver for that as well.

今年的現金稅（cash taxes）比去年高一些，這是其中一部分。但整體而言，我們對現金轉換率相當有信心。而且再說一次，下半年通常本來就是一年中較強的部分。我認為第一季之所以相對較強，部分原因是 2023 財年的績效導致我們的激勵獎金發放非常、非常低。我們在 12 月季度支付那些獎金。那個金額大概比目標少了 2,500 萬美元左右——可以說重設大約就是 2,500 萬美元。所以這也是驅動因素之一。

Got it. Okay. That's helpful. And then just one last one. On the raw material front, I mean, it sounds like at least at this point, things are benign, but you've got your eye on a couple of things. BDO, obviously, you're fully integrated through, so it shouldn't be a concern there.

了解。好，這很有幫助。最後一題，關於原物料方面：聽起來至少目前環境算溫和，但你們有在關注幾個項目。BDO 顯然你們是完全垂直整合的，所以那邊應該不是問題。

I guess what are the other raw materials that you're looking at where maybe there is some risk of inflation because it still seems like it's a relatively benign environment. So I think how should we be thinking about that?

我想問你們還在看哪些其他原物料，可能存在一些通膨風險？因為看起來整體仍是相對溫和的環境。我們應該如何思考這件事？

So let me comment and Kevin, you can add some color. BDO, we're not tracking it. I mean, for us, it's butane is more the issue for the back integration that we have. But we do track it because it affects a lot of other players in the market, especially in the PVP and other downstream NMP and other areas.

我先評論一下，Kevin 你也可以補充一些細節。BDO 我們其實沒有特別追蹤。對我們而言，因為我們有向上游整合，真正比較關鍵的是丁烷（butane）。但我們仍會追蹤 BDO，因為它會影響市場上很多其他參與者，特別是在 PVP 以及其他下游的 NMP 等領域。

So I think picking up, we expect those costs, market cost expectations is that we'll start to trend up, which is, for us, a good thing overall, especially in our Intermediates business. So that's where we've seen the biggest impact.

所以我認為接下來，我們預期那些成本——市場對成本的預期——會開始走升；整體而言這對我們是好事，尤其是在我們的中間體（Intermediates）事業。那是我們看到影響最大的地方。

For other areas, obviously, cellulose, cotton and wood pulp is the other big raw materials. They've been sort of stable. Expectations that they'll soften up a little bit more over time, but these products go into hygiene, although it's not our business is and the only user of these materials.

至於其他領域，顯然纖維素（cellulose）、棉花與木漿是另外幾項主要原物料。它們大致上算穩定。市場預期它們隨時間可能會再軟化一些，但這些產品會用在衛生用品等領域——雖然那不是我們的業務——而且也不是這些材料的唯一使用者。

But that one, it hasn't been the biggest driver yet, a little bit of improvement year-on-year, in terms of costs. The rest you really start getting down into the process chemicals that we use the [OPO], solvents, things of that nature. None of them is a significant cost per se, so it will vary by business, but we're monitoring those type of products that we use in our production, for the high-volume products.

但到目前為止，那一項還不是最大的驅動因素；就成本而言，年對年有些微改善。其餘的就會更深入到我們使用的製程化學品，例如 [OPO]、溶劑等這類東西。它們本身都不是特別重大的成本項目，所以會因事業而異，但我們正在監控這些在生產高產量產品時會用到的材料。

Yes, on an overall basis, our raw material forecast has remained pretty stable in terms of raw material cost forecast, it has remained pretty stable throughout the year. I mean first half of the year, we have seen declines in some areas. But again, generally, it's been a pretty stable environment on an overall basis.

是的，整體而言，我們的原物料成本預測一直相當穩定；就原物料成本的預測來說，全年都維持得很穩。我的意思是，上半年我們在某些領域確實看到下滑。但再說一次，整體而言，總體環境一直相當穩定。

I'm showing no further questions at this time. I would now like to turn it back to Guillermo Novo for closing remarks.

我目前看不到其他提問。我現在想把時間交回給 Guillermo Novo 做結語。

Thank you, Daniel. Thank you, everyone, for your time today. As you heard, I think things are normalizing. We're focusing, we're going to manage. We still have work to do during 2024 to make sure we optimize as the normalization dynamics play out, and we'll stay on point on that.

謝謝你，Daniel。也謝謝各位今天撥冗參與。如各位所聽到的，我認為情況正在正常化。我們會聚焦、會管理。我們在 2024 年仍有一些工作要做，以確保在正常化動態發展的過程中持續最佳化，我們也會持續專注在這點上。

But really, the issue now is also to focus on the future. And the future is refining our portfolio, honing in on those high-value markets that we want to participate in and that we want to lead in and driving our innovation portfolio that really can transform the company in the coming decade. So thank you for your time and look forward to connecting with all of you in the coming weeks.

但現在真正的重點也在於聚焦未來。而未來就是精煉我們的投資組合，聚焦於我們想參與、也想領先的高價值市場，並推動我們的創新組合，讓它在未來十年真正能夠改造公司。因此謝謝各位的時間，也期待在接下來幾週與各位交流。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝各位參與。您現在可以掛線。