Ashland Inc. (ASH) 2024年年度報告「NYSE」.pdf

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1、responsibly solving for a better worldannual report fiscal 2024*This Annual Report includes certain non-GAAP measures.Such measurements are not prepared in accordance with U.S.GAAP and should not be construed as an alternative to reported results determined in accordance with U.S.GAAP.Management bel

2、ieves the use of such non-GAAP measures assists investors in understanding the ongoing operating performance of the company and its segments.The non-GAAP information provided may not be consistent with the methodologies used by other companies.All non-GAAP amounts have been reconciled with reported

3、U.S.GAAP results,which are included in the“Managements Discussion and Analysis of Financial Condition and Results of Operations”section of this Annual Report.This Annual Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933,as amended,and Section

4、21E of the Securities Exchange Act of 1934,as amended.These forward-looking statements are not historical facts and generally are identified by words such as“anticipates,”“believes,”“estimates,”“expects,”“is likely,”“predicts,”“projects,”“forecasts,”“may,”“will,”“should,”and“intends”and the negative

5、 of these words or other comparable terminology.Although Ashland believes that its expectations are based on reasonable assumptions,such expectations are subject to risks and uncertainties that are difficult to predict and may be beyond Ashlands control.Please see“Item 1A.Risk Factors”and“Use of est

6、imates,risks and uncertainties”in Note A of Notes to Consolidated Financial Statements in this Annual Report.Unless legally required,Ashland undertakes no obligation to update any forward-looking statements made in this Annual Report,whether as a result of new information,future events or otherwise.

7、contents CEO letter to shareholders .4 platform technologies.6 life sciences .8 personal care .10 specialty additives .12 ESG.14 responsible solvers.16 10-K .19 corporate governance.inside back cover shareholder information.back coversales of$2.1 billion down 4 percentadjusted EBITDA of$459 million

8、flatadjusted EBIT of$240 million up roughly 11%adjusted EBITDA margin of 21.7%up 80 basis pointsadjusted EBIT margin 11.4%up from 9.9%adjusted EPS(excluding intangible amortization)of$4.45 up 9%FCF$325 million up from$124 million driven by favorable working capital and lower capital expenditures2024

9、 highlights*strategic prioritiessustainably shape and grow the portfolio5on the cover Represented on our cover are the Ashland big3 strategic growth markets:Pharmaceutical,Personal Care and Coatings which have strong secular growth drivers.improve near-term performance of core and drive long-term gr

10、owth catalysts execute expand leading technology capacityexit select product/business linesinnovateexisting technology platformsnew technology platformsglobalize high-value product segments in key geographiesexpand big3 in Asiaacquire drug delivery technologiesnatural&biotech technologieshigh-value

11、additives$adjusted EBITDA marginadjusted EBITDAAll figures are presented on an adjusted basis.“Managements Discussion and Analysis of Financial Condition and Results of Operations”section of this Annual Report reconciles adjusted amounts to amounts reported under GAAP,including reconciliations of ne

12、t income to EBITDA and adjusted EBITDA,operating income to adjusted operating income,income from continuing operations to adjusted income from continuing operations,diluted earnings per share to adjusted diluted earnings per share and adjusted diluted earnings per share,excluding amortization expens

13、e.saleslife sciences$810FY 2024$815FY 2022$869FY 2023$2,113FY 2024$2,391FY 2022$2,191FY 2023Ashlandpersonal care$634FY 2024$678FY 2022$598FY 2023intermediates$144FY 2024$256FY 2022$185FY 2023$572FY 2024$719FY 2022$600FY 2023specialty additives$459FY 2024$590FY 2022$459FY 2023Ashlandlife sciences$230

14、FY 2024$218FY 2022$247FY 2023personal care$164FY 2024$186FY 2022$137FY 2023intermediates$42FY 2024$100FY 2022$63FY 2023$99FY 2024$185FY 2022$94FY 2023specialty additives21.7%FY 202424.7%FY 202220.9%FY 2023Ashlandlife sciences28.4%FY 202426.7%FY 202228.4%FY 2023personal care25.9%FY 202427.4%FY 202222

15、.9%FY 2023intermediates29.2%FY 202439.1%FY 202234.1%FY 202317.3%FY 202425.7%FY 202215.7%FY 2023specialty additivesG58895 COR24-112_Annual-Report_2024_TXT.indd 3G58895 COR24-112_Annual-Report_2024_TXT.indd 311/18/24 5:05 PM11/18/24 5:05 PM 4Dear Shareholders,I am pleased to present our fiscal year 20

16、24 results and outlook for 2025,a year marked by recovery from prolonged inventory destocking in the materials sector.We were able to deliver strategic progress,margin expansion,high-quality free cash flow,and disciplined execution across our global portfolio.Despite a complex operating environment,

17、we demonstrated our ability to drive value through portfolio optimization,commercial excellence,and focused growth in our core markets.Our exciting globalization initiatives and new technology platforms are unlocking organic growth for us and for our customers worldwide.And they are enabling custome

18、rs to reshape global megatrends and respond to changing regulatory landscapes.In FY2024,we achieved sales of$2.1 billion.Overall organic sales volumes were up for the year,characterized by destocking early in the year and a sustained second-half recovery.Our portfolio optimization actions improved t

19、he quality of the business by reducing lower-margin,more volatile sales.We experienced softer pricing overall but the team maintained price versus volume discipline in a competitive,raw material deflationary environment.Margins improved as the year progressed,primarily a result of improved sales and

20、 production volumes paired with improved product mix due to our portfolio improvement actions.Throughout the year,our prudent approach to production increased operating flexibility while delivering significant unit cost improvement.Our focused execution delivered strong profitability with adjusted E

21、BITDA margins expanding in 2024 by 80 basis points to 21.7 percent.This performance demonstrates our ability to drive high-quality earnings even in a challenging environment.From a portfolio perspective,our improvement initiatives advanced as we took action to consolidate our carboxymethyl cellulose

22、(CMC)and methyl cellulose(MC)industrial business lines in addition to selling our nutraceuticals business in August.Each effort was another significant step in our plan to create a more resilient and profi able portfolio.We enhanced our teams and capabilities to progress our strategic initiatives.We

23、 are actively investing in our globalize from our Chair and CEO 4G58895 COR24-112_Annual-Report_2024_TXT_aa1.indd 4G58895 COR24-112_Annual-Report_2024_TXT_aa1.indd 411/20/24 4:03 PM11/20/24 4:03 PMbusinesses,which delivered average revenue growth of 15 percent in FY24 at high-quality profitability.O

24、ur innovate strategic priority presents us with the most powerful growth catalyst opportunity going forward.Our teams focused on high-value efforts,and the innovation pipeline increased by 40 percent in areas with technology and market leadership.Our commitment to sustainability reached a significan

25、t milestone with the approval of our science-based targets in October 2023.This achievement aligns us with over 6,500 global companies leading in climate action.More importantly,it positions us to capture the growing demand for sustainable solutions across our markets.Looking Ahead:Strategy and Capi

26、tal AllocationAs we move into fiscal year 25,overall uncertainty remains high with many macroeconomic dynamics impacting not only our company but our industrys stakeholders.Elevated but moderating inflation,structural challenges of European supply,a moderate manufacturing recovery post-COVID,prolong

27、ed economic slowdown in China as well as rising trade barrier tension,suggest muted demand and increased competitive intensity.In an environment with moderate growth and elevated uncertainty,we will stay on strategy and increase our focus on controllables that drive financial performance.Our teams r

28、emain focused on driving our strategy of Execute,Globalize,and Innovate to deliver profitable organic growth.Our Execution pillar will be emphasized as we proactively respond to challenging market conditions.Our strategic priorities are clear:Execute:advancing operational productivity and cost savin

29、gs initiatives to offset stranded costs from optimization actions and strengthen our core Globalize:leveraging recent investments to advance momentum in our biofunctionals,microbial protection,injectables and pharma film coatings business lines Innovate:launching new products within our scalable tec

30、hnology platformsAshlands capital allocation discipline and strong financial foundation is evident in several key achievements in FY24:Generated strong ongoing free cash flow,up 24 percent versus last year Share repurchases of$380 million,reducing our share count by 4.3 million shares Maintained our

31、 record of annual dividend increases since 2009 Preserved high-quality leverage metricsThis financial strength,combined with our healthy free cash flow generation,gives us strategic flexibility to invest in growth while maintaining our commitment to shareholder returns.Closing ThoughtsWhile the exte

32、rnal environment presents challenges,I am confident our strategy positions us well to face near-term headwinds and advance initiatives to deliver long-term success.We are competing in the right markets with the right capabilities and the right strategy.Our diverse portfolio,technical leadership,and

33、focus on sustainable solutions position us well for the evolving needs of our customers.The dedication of our employees,our customers trust,and our shareholders support continues to be the foundation of our success.As we execute our strategy,we remain focused on delivering sustainable,profi able gro

34、wth and long-term shareholder value while responsibly solving for a better world.Thank you for your continued support of Ashland.Sincerely,Guillermo Novo Chair and Chief Executive Officer AshlandG58895 COR24-112_Annual-Report_2024_TXT.indd 5G58895 COR24-112_Annual-Report_2024_TXT.indd 511/18/24 5:05

35、 PM11/18/24 5:05 PM 6innovative technology platforms At Ashland,we are delivering scalable innovations that maximize growth and profit potential in our core business,while creating upside optionality over time.Our solutions enable innovative achievements offering choice to customers and consumers.Th

36、ese technology platforms enable customers to reshape global megatrends and respond to various regulatory landscapes.6G58895 COR24-112_Annual-Report_2024_TXT.indd 6G58895 COR24-112_Annual-Report_2024_TXT.indd 611/18/24 5:05 PM11/18/24 5:05 PMexpanding our toolbox with strategic,low-risk bets that hav

37、e high optionality;launched three new products and increased platform pipeline value 2.5xleveraging technology platforms to catalyze growthlearn more at launched&more in development in development identified value=projected year five revenue post-launch.transformed vegetable oilswho responsibly inno

38、vates for the future?we do.bioresorbable polymersmultifunctional starchliquid cellulose+super wettersnovel cellulosicspH neutralizerlife sciencespersonal carespecialty additivesstrong momentumtransformed vegetable oils nature derivedbioresorbable polymers biodegradablesuper wetting agents sustainabl

39、enovel cellulosics nature derivedhigh future optionalityliquid cellulose nature derivedmultifunctional starch sustainablepH neutralizer sustainableG58895 COR24-112_Annual-Report_2024_TXT.indd 7G58895 COR24-112_Annual-Report_2024_TXT.indd 711/18/24 5:05 PM11/18/24 5:05 PM 8klucel ls low-substituted h

40、pc Klucel ls low-substituted hydroxypropylcellulose (hpc)is a multifunctional binder and disintegrant that has several benefits and applications in oral solid dosage forms.Scientists at Ashland continue to innovate and develop new hpc products to meet the needs of the pharmaceutical industry.Klucel

41、ls addresses our customers desire to de-risk their supply chain by having more than one longstanding global leader supplying low-substituted hpc.Ashland is the only supplier with both low and high substituted hpc products.life sciences 8G58895 COR24-112_Annual-Report_2024_TXT.indd 8G58895 COR24-112_

42、Annual-Report_2024_TXT.indd 811/18/24 5:05 PM11/18/24 5:05 PMpolyplasdone LN crospovidone superdisintegrants provide rapid disintegration and dissolution to oral solid dosage forms,enhancing the dissolution of poorly soluble drugs that is not possible with other disintegrant technologies.viatel ultr

43、apure high-purity bioresorbable polymers for long-acting injectables and implants offer improved stability and achieve longer,more consistent drug release profiles,are better suited for sensitive drug compounds in long-acting injectables and implants,and are pre-filtered during the purification proc

44、ess to ensure exceptional quality.platform innovation,easy wet 300n wetting agent is a unique solution for crop care.This biodegradable,nonionic,silicone-free wetting agent sets a new standard in crop care offering superior wettability at lower concentrations,reduced spray drift,and enhanced coverag

45、e of active ingredients across leaf surfaces.Our proprietary,patented technology offers agricultural retailers an opportunity to boost crop yields and unlock organic growth,while supporting sustainability goals.The standout technology can be used across a wide range of crops,from corn,soy,wheat,wate

46、rmelon,and florals to other produce like bananas and tomatoes.second expansion for viatel bioresorbable polymers manufacturing and R&D lab in Mullingar,IrelandAshland has completed the second expansion of its pharmaceutical injectables manufacturing and R&D lab in Mullingar,Ireland.This cutting-edge

47、 facility represents a significant milestone for our company while expanding the footprint,capabilities and workforce to accelerate the delivery of innovative polymer chemistry and meet growing customer demand in the pharmaceutical,tissue engineering and medical device markets.G58895 COR24-112_Annua

48、l-Report_2024_TXT.indd 9G58895 COR24-112_Annual-Report_2024_TXT.indd 911/18/24 5:06 PM11/18/24 5:06 PM 10innovative technology platforms include products that are sustainably sourced,upcycled,natural,nature-derived,biodegradable,“new to the world”ingredients In personal care,Ashland scientists are l

49、everaging powerful technology platforms and focusing on globalizing biofunctionals and microbial protection to capitalize on growth opportunities.Our products harness the power of nature to help soften skin,revitalize hair,whiten teeth,fight visible signs of aging and the list goes on.Designed with

50、a profound understanding of biology,our industry-leading portfolio includes natural,nature-derived and biodegradable botanical ingredients,synthetic peptides and more.As we globalize these technologies,dedicated teams of research scientists evaluate local and sustainably-sourced ingredients for our

51、next generations of innovative products that help our customers quickly and effectively substantiate their claims and benefits.personal care 10G58895 COR24-112_Annual-Report_2024_TXT.indd 10G58895 COR24-112_Annual-Report_2024_TXT.indd 1011/18/24 5:06 PM11/18/24 5:06 PMmicrobiologicalqualitymanagemen

52、tmqmtrainingschallenge testsplant hygieneproduct protectionstyleze es-forza polymer is our most recent addition to plant based,eco-styling products for gels and cream formulations.It allows formulators to customize their products to desired stiffness and hold levels so consumers can maintain a hair

53、style,even in extreme humidity.perfectyl biofunctional is an award-winning,high-tech chamomile extract,inspired by new aesthetic techniques,to clarify&smoothen skin flaws such as large pores and hyperpigmentation for all ethnicities.n-durhance es-repair is a nature-derived(85%natural origin),inheren

54、tly biodegradable*ingredient.It delivers durable split end repair and protects hair from damage and breakage during wet combing and heat styling.With excellent sensorial properties,it gives hair a lubricious,non-tacky feel.gantrez soja delivery system is a nature-derived,biodegradable*ingredient tha

55、t is substantive to oral mucosa and enamel to retain oral care actives in the mouth for long-lasting benefits.It enables the creation of novel oral care products with long-lasting freshness and antimicrobial benefits.microbiological quality management (mqm)helps ensure high quality of cosmetics.Ashl

56、and mqm takes a 360 holistic approach to product safety while considering ecological and economic aspects of formulations.Helping mitigate contamination,it helps improve hygiene,cleaning measures,raw material quality,storage,plant design and enables well-trained personnel.new Central R&D EMEA lab op

57、ening and customer event in The NetherlandsIn June 2024,Ashland solvers unveiled new R&D laboratories in Zwijndrecht,the Netherlands.Our innovation platforms,new to the world technologies and transformed vegetable oils with customizable solutions were all on display.Highlights included biopolymers d

58、elivering exceptional performance and innovative rheology modifiers that optimize texture and enhance product efficacy.Attendees gained valuable insights about Ashlands cutting-edge polymer design,biodegradability and ecotoxicity testing capabilities.*natural according to ISO16128:2017 calculation m

59、ethods and definitions,OECD 301D and 302B methods.*based on OECD 301F.G58895 COR24-112_Annual-Report_2024_TXT.indd 11G58895 COR24-112_Annual-Report_2024_TXT.indd 1111/18/24 5:06 PM11/18/24 5:06 PM 12specialty additivesthe architectural and industrial coatings markets vary significantly from region t

60、o region With consumers desires shaping global trends and regulatory landscapes,paint and coatings manufacturers rely on partners who can help solve challenges that meet specific consumer needs in those local markets and often success depends on applying global solutions in uniquely local contexts.A

61、s a leading global supplier,Ashland puts the power of our people and practice in these local regions.Working with our customers,we provide water-based additives and the formulation support they need to increase efficiencies and improve the sustainability of their products and processes without sacri

62、ficing performance.12G58895 COR24-112_Annual-Report_2024_TXT.indd 12G58895 COR24-112_Annual-Report_2024_TXT.indd 1211/18/24 5:06 PM11/18/24 5:06 PMAshland celebrated the grand opening of its new,nonionic synthetic associative thickener facility in Calvert City,Kentucky with a ribbon-cutting ceremony

63、Our broad and diverse product line helps increase performance and create sustainable solutions in a wide variety of industrial specialized markets and applications.This expansion significantly increases our capacity and capabilities,supports our globalize strategy and further solidifies our leadersh

64、ip towards meeting the global demand for rheology modifiers.easy-wet substrate wetting agents Ashland is changing the way paint works in industrial markets with the development of a new generation of silicone-free substrate wetting agents.Our easy-wet portfolio uses breakthrough technology designed

65、to create defect-free film.Our products deliver key functional attributes including excellent substrate wetting and very low foam stabilization,leading to no cratering.These substrate wetting agents give formulators precise control of composition with the ability to easily adjust ratios.This high-pe

66、rforming substrate is used in a large variety of industrial coatings applications,including wood over metal,automotive,general industrial finishes,printing inks and plastic coatings.All grades are silicone free and offer a more sustainable solution.G58895 COR24-112_Annual-Report_2024_TXT.indd 13G588

67、95 COR24-112_Annual-Report_2024_TXT.indd 1311/18/24 5:06 PM11/18/24 5:06 PMESG ESG,a critical role in our long-term business strategy Environmental,social and governance(ESG)is embedded in Ashlands strategy and operating plans.It is both an impetus and growth opportunity,turning the potential for ch

68、ange into action and driving real business growth.Under our commitment to the Paris Climate Accord and Science Based Targets,and the United Nations Global Compact and Sustainable Development Goals,were operating with greater transparency and aligning resources to help solve some of the worlds most c

69、omplex challenges.Ashlands conscious-to-cutting-edge innovation strategy includes increasing the speed and impact of new product innovations while embracing and integrating ESG in all that we do.More than 76 percent of our product portfolio is natural,nature-derived,biodegradable or sustainable in-u

70、se#.To learn more,visit: 14G58895 COR24-112_Annual-Report_2024_TXT.indd 14G58895 COR24-112_Annual-Report_2024_TXT.indd 1411/18/24 5:06 PM11/18/24 5:06 PMcelebrating solvers and recognizing 100 years of innovation by planting trees to restore local ecosystems and support sustainable sourcingThis year

71、,Ashland entered a strategic partnership with the Arbor Day Foundation,recognizing the 100-year anniversary of the company and celebrating the innovative work of its 3,200 global solvers.Through the collaboration,the Foundation is planting four trees in honor of each employee.The effort reinforces t

72、he companys commitment to sustainable sourcing and helps restore and regenerate forest ecosystems of great need in Brazil,Mexico,Kentucky,West Virginia,Alabama,Mississippi,Georgia and Florida.Since its founding in 1972,the Arbor Day Foundation has planted over 500 million trees in the forests and co

73、mmunities around the world that need them most.Our collaboration with the Arbor Day Foundation embodies Ashlands desire to support important environmental initiatives and the communities we serve.Through these efforts,were celebrating the innovations of our solvers and our century-long legacy and la

74、ying the groundwork for the next 100 years of innovation and sustainability.To support the fight against climate change,Ashland voluntarily committed to near term targets with the Science Based Targets initiative(SBTi)and in October 2023,the companys science-based targets received formal approval.Th

75、e commitment bolsters Ashlands purpose to responsibly solve for a better world and highlights the dedicated efforts of the companys global solvers who committed to ambitious,precise,and impactful goals for the company and its value chain and the local communities where Ashland operates.Ashlands targ

76、ets address scope one,two and three emissions and are aligned with the business ambition for 1.5C.#Percent of FY 2023 sales including merchant intermediates and nutraceuticals.High sustainability(natural,nature-derived,inherently biodegradable under OECD).Sustainable in-use(sustainability impact on

77、our customers).G58895 COR24-112_Annual-Report_2024_TXT.indd 15G58895 COR24-112_Annual-Report_2024_TXT.indd 1511/18/24 5:06 PM11/18/24 5:06 PM 16Responsible Solvers employee engagement programThe Responsible Solvers employee engagement program embodied Ashlands commitment to environmental,social,and

78、governance(ESG)principles by educating and empowering employees to lead the way in sustainable,socially responsible practices.Offered throughout 2024,as part of our ongoing ESG initiatives,the program provided employees with valuable information and resources on diverse topics,including safety,cyber

79、security,environmental impact,and inclusion and diversity.The aim of the program was to create awareness,accountability,and positive change by helping employees deepen their understanding of the impact Ashland makes as a company,and the impact we make as individuals.Together,we are shaping a more su

80、stainable,equitable future-both within Ashland and beyond.Learn more at 22,2024|8:00 9:30am ETemployees learned about our manufacturing operations,emissions,water and waste targets,and what Ashland is doing to meet or exceed these targetsJune 3,2024|8:00 9:30am ETemployees learned about safety princ

81、iples and best practices presented by internal experts,and celebrated throughout the month with articles,activities,and good catch challengesFebruary 29,2024|9:00 10:30am ETAshland African Descendants Network and Womens International Network welcomed Dr.Yabome Gilbert-Johnson,who presented The Power

82、 of Resonance:From an African Descent Employee Network to Social Inclusion for AllMarch 7,2024|8:00 9:30am ETAshland Womens International Network announced the Ashland Inspirational Womens Award winnersG58895 COR24-112_Annual-Report_2024_TXT.indd 16G58895 COR24-112_Annual-Report_2024_TXT.indd 1611/1

83、8/24 5:06 PM11/18/24 5:06 PMJune 24,2024|8:00 9:30am ETemployees learned about the impact that our regional social programs are having around the world,and how to get more involved to support STEMOctober 24 2024|8:00 9:30am ETinternal experts educated employees about how Ashland is governing its ass

84、ets and protecting employee,company,customer,and supplier data;the team also shared Ashlands approach to corporate governance that ensures ethical,responsible,transparent operations for the betterment of people,the planet,and our stakeholdersJuly 25,2024|8:00 9:30am ETAshlands sourcing and sustainab

85、ility leaders educated employees on the companys approach to managing resources through sustainable sourcing,and the importance of earth overshoot dayJune 12,2024|9:00 10:30am ETAshland Pride Allies Network and African Descendants Network welcomed Annemarie Shrouder,who hosted a workshop on Intersec

86、tionalitySeptember 12,2024|8:00 9:30am ETafter almost 3 years into Ashlands inclusion and diversity strategy,employees learned about the actions taken,the future direction,and how to get involvedG58895 COR24-112_Annual-Report_2024_TXT.indd 17G58895 COR24-112_Annual-Report_2024_TXT.indd 1711/18/24 5:

87、06 PM11/18/24 5:06 PM100 years of honoring our past,celebrating today and looking towards our future responsibly solving for a better worldG58895 COR24-112_Annual-Report_2024_TXT.indd 18G58895 COR24-112_Annual-Report_2024_TXT.indd 1811/18/24 5:06 PM11/18/24 5:06 PMUNITED STATESSECURITIES AND EXCHANG

88、E COMMISSIONWASHINGTON,D.C.20549FORM 10-KANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended September 30,2024 ORTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from _ to _Commis

89、sion file number 333-211719ASHLAND INC.Delaware(State or other jurisdiction of incorporation or organization)81-2587835(I.R.S.Employer Identification No.)8145 Blazer DriveWilmington,Delaware 19808Telephone Number(302)995-3000Securities Registered Pursuant to Section 12(b)of the Act:Title of each cla

90、ssTrading SymbolName of each exchange on which registeredCommon Stock,par value$.01 per shareASHNew York Stock ExchangeSecurities Registered Pursuant to Section 12(g)of the Act:NoneIndicate by check mark if the Registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Y

91、es No Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d)of the Act.Yes No Indicate by check mark whether the Registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the p

92、receding 12 months(or for such shorter period that the Registrant was required to file such reports),and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be su

93、bmitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the Registrant was required to submit such files).Yes No Indicate by check mark whether the Registrant is a large accelerated filer,an accelerated filer,a non-acceler

94、ated filer,a smaller reporting company or an emerging growth company.See the definitions of“large accelerated filer,”“accelerated filer,”“smaller reporting company,”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large Accelerated Filer Accelerated Filer Non-Accelerated Filer Smaller R

95、eporting Company Emerging Growth Company If an emerging growth company,indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by

96、 check mark whether the Registrant has filed a report on attestation to its managements assessment of the effectiveness of its internal control over financial reporting under section 404(b)of the Sarbanes-Oxley Act(15 U.S.C 7262(b)by the registered public accounting firm that prepared or issued its

97、audit report.Yes No If securities are registered pursuant to Section 12(b)of the Act,indicate by check mark whether the financial statements of the Registrant included in the filing reflect the correction of an error to previously issued financial statements.Indicate by check mark whether any of tho

98、se error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the Registrants executive officers during the relevant recovery period pursuant to 240.10D-1(b).Indicate by check mark whether the Registrant is a shell company(as defined in Ru

99、le 12b-2 of the Act).Yes No At March 31,2024,the aggregate market value of voting and non-voting common equity held by non-affiliates of the Registrant was approximately$4.9 billion.In determining this amount,the Registrant has assumed that its directors and executive officers are affiliates.Such as

100、sumption shall not be deemed conclusive for any other purpose.At October 31,2024,there were 47,109,326 shares of Registrants common stock outstanding.DOCUMENTS INCORPORATED BY REFERENCEPortions of Registrants Proxy Statement(Proxy Statement)for its 2025 Annual Meeting of Stockholders are incorporate

101、d by reference into Part III of this Annual Report on Form 10-K to the extent described herein.TABLE OF CONTENTSPagePART IItem 1.Business.4General.4Life Sciences.5Personal Care.5Specialty Additives.6Intermediates.7Miscellaneous.7Item 1A.Risk Factors.14Item 1B.Unresolved Staff Comments.22Item 1C.Cybe

102、rsecurity.22Item 2.Properties.23Item 3.Legal Proceedings.23Item 4.Mine Safety Disclosures.25PART IIItem 5.Market for Registrants Common Equity,Related Stockholder Matters and Issuer Purchases of Equity Securities.26Item 6.Reserved.27Item 7.Managements Discussion and Analysis of Financial Condition a

103、nd Results of Operation.27Item 7A.Quantitative and Qualitative Disclosures about Market Risk.27Item 8.Financial Statements and Supplementary Data.27Item 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.27Item 9A.Controls and Procedures.27Item 9B.Other Informatio

104、n.28Item 9C.Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.28PART IIIItem 10.Directors,Executive Officers and Corporate Governance.29Item 11.Executive Compensation.29Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.29Item 13.

105、Certain Relationships and Related Transactions,and Director Independence.30Item 14.Principal Accountant Fees and Services.30PART IVItem 15.Exhibits and Financial Statement Schedules.31Item 16.Form 10-K Summary.384PART IITEM 1.BUSINESSGENERALAshland Inc.is a Delaware corporation,with its headquarters

106、 and principal executive offices at 8145 Blazer Drive,Wilmington,Delaware 19808.Our common stock is listed on the New York Stock Exchange(NYSE)under the ticker symbol“ASH”.The terms“Ashland”and the“Company”as used herein include Ashland Inc.,its predecessors,and its consolidated subsidiaries,except

107、where the context indicates otherwise.Ashland is a global specialty additives and materials company with a conscious and proactive mindset for sustainability.The Company serves customers in a wide range of consumer and industrial markets including,architectural coatings,construction,energy,food and

108、beverage,personal care and pharmaceutical.With approximately 3,200 employees worldwide,Ashland serves customers in more than 100 countries.Ashlands reportable segments include:Life Sciences;Personal Care;Specialty Additives;and Intermediates.Unallocated and Other includes corporate governance activi

109、ties and certain legacy matters.Life Sciences is comprised of pharmaceuticals,nutrition,agricultural chemicals,diagnostic films(formerly known as advanced materials)and fine chemicals.Pharmaceutical solutions include controlled release polymers,disintegrants,tablet coatings,thickeners,solubilizers a

110、nd tablet binders.Nutrition solutions include thickeners,stabilizers,emulsifiers and additives for enhancing mouthfeel,controlling moisture migration,reducing oil uptake and binding structured foods.Customers include pharmaceutical,food,beverage,hospitals and radiologists and industrial manufacturer

111、s.The nutraceuticals business was sold in August 2024.Personal Care is comprised of biofunctionals,microbial protectants(preservatives),skin care,sun care,oral care,hair care and household solutions.These businesses have a broad range of natural,nature-derived,biodegradable,and high-performance ingr

112、edients for customer-driven solutions to help protect,renew,moisturize and revitalize skin and hair,and provide solutions for toothpastes,mouth washes and rinses,denture cleaning and care for teeth.Personal Care supplies nature-derived rheology ingredients,biodegradable surface wetting agents,perfor

113、mance encapsulates,and specialty polymers for household,industrial and institutional cleaning products.Customers include formulators at large multinational branded consumer products companies and smaller,independent boutique companies.Specialty Additives is comprised of rheology and performance-enha

114、ncing additives serving the architectural coatings,construction,energy,automotive and various industrial markets.Solutions include coatings additives for architectural paints,finishes and lacquers,cement-and gypsum-based dry mortars,ready-mixed joint compounds,synthetic plasters for commercial and r

115、esidential construction,and specialty materials for industrial applications.Products include rheology modifiers(cellulosic and associative thickeners),foam control agents,surfactants and wetting agents,pH neutralizers,advanced ceramics used in catalytic converters,and environmental filters,ingredien

116、ts that aid the manufacturing process of ceramic capacitors,plasma display panels and solar cells,ingredients for textile printing,thermoplastic metals and alloys for welding.Products help improve desired functional outcomes through rheology modification and control,water retention,workability,adhes

117、ive strength,binding power,film formation,deposition and suspension and emulsification.Customers include global paint manufacturers,electronics and automotive manufacturers,textile mills,the construction industry and welders.Intermediates is comprised of the production of 1,4 butanediol(BDO)and rela

118、ted derivatives,including n-methylpyrrolidone.These products are used as chemical intermediates in the production of engineering polymers and polyurethanes,and as specialty process solvents in a wide array of applications including electronics,pharmaceuticals,water filtration membranes and more.BDO

119、is also supplied to Life Sciences,Personal Care,and Specialty Additives for use as a raw material.Unallocated and Other generally includes items such as certain significant company-wide restructuring activities,corporate governance costs and legacy costs or activities that relate to divested busines

120、ses that are no longer operated by Ashland.5Available Information-Ashlands Internet address is http:/.On this website,Ashland makes available,free of charge,its annual reports on Form 10-K,quarterly reports on Form 10-Q,current reports on Form 8-K and any amendments to those reports,as well as any b

121、eneficial ownership reports of officers and directors filed on Forms 3,4 and 5.All such reports are available as soon as reasonably practicable after they are electronically filed with,or electronically furnished to,the Securities and Exchange Commission(SEC).Ashland also makes available,free of cha

122、rge on its website,its Corporate Governance Guidelines,Board Committee Charters,Director Independence Standards and Global Code of Conduct that applies to Ashlands directors,officers and employees.These documents are also available in print to any stockholder who requests them.Information contained

123、on Ashlands website referenced here or elsewhere in this Annual Report is not part of this Annual Report on Form 10-K and is not incorporated by reference in this document.The SEC maintains an Internet site(http:/www.sec.gov)that contains reports,proxy and information statements and other informatio

124、n regarding issuers that file electronically with the SEC.LIFE SCIENCESLife Sciences is a leading supplier of excipients and tablet coating systems to the pharmaceutical and nutrition industries.Excipients include a comprehensive range of polymers for use as tablet binders,super disintegrants,sustai

125、ned-release agents and drug solubilizers,as well as a variety of coating formulations for immediate,delayed,and sustained release applications.Core products include cellulosics and vinyl pyrrolidone polymers which are used primarily in oral solid dosage drug formulations.Its nutrition portfolio prov

126、ides functional benefits in areas such as thickening,texture control,thermal gelation,structure enhancement,water binding,clarification and stabilization.Its core products include cellulose gums and vinyl pyrrolidone polymers which are used in a wide range of offerings for bakery,beverage,dairy,dess

127、erts,meat products,pet food,prepared foods,sauces and savory products.Life Sciences operates throughout the Americas,Europe and Asia Pacific.It has 14 manufacturing and lab facilities in nine countries which serve its various end markets.It has manufacturing facilities and labs in Wilmington,Delawar

128、e;Calvert City,Kentucky;Columbus,Ohio;Fiskeville,Rhode Island;and Texas City,Texas within the United States;Cabreuva and Sao Paolo,Brazil;Shanghai,China;Dusseldorf,Germany;Hyderabad,India;Mullingar,Ireland;Mexico City,Mexico;Bangkok,Thailand;and Istanbul,Turkey.Life Science markets and distributes i

129、ts products in the Americas,Europe,the Middle East,Africa and Asia Pacific.For fiscal 2024,the following Life Sciences product categories were 10%or greater of Ashlands total consolidated sales:Product%of Life Sciences sales%of Ashland total consolidated salesCellulosics38%37%Polyvinylpyrrolidones(P

130、VP)38%23%PERSONAL CAREThe Personal Care portfolio of oral care products delivers active ingredients in toothpaste and mouthwashes;provides bioadhesive functionality for dentures;delivers flavor,texture and other functional properties;and provides product binding to ensure form and function throughou

131、t product lifecycle.The Personal Care portfolio of hair care products includes advanced styling polymers,fixatives,conditioning polymers,emulsifiers,preservatives,rheology modifiers and biofunctional actives.The Personal Care portfolio of ingredients and solutions for skin care,sun care,and cosmetic

132、s focuses on natural and sustainable solutions.Ashlands Personal Care business includes biofunctional actives,preservatives,and specialty polymers to provide functionality such as water resistance and rheology.Ashlands natural ingredients include a wide range of cellulose,guar,and cassia derivatives

133、;unique active ingredients derived from botanical sources using exclusive Ashland technologies such as Zeta FractionTM and PSR technology;emollients based on natural chemistries;encapsulation technology derived from alginates;and efficacious preservative blends inspired by nature.6The Personal Care

134、portfolio of products and technologies is used in many types of cleaning and fragrance applications,including fabric care,home care and dishwashing.Personal Care products are used in a variety of applications for viscosity enhancement,particle suspension,rheology modification,stabilization and fragr

135、ance enhancement.Personal Care operates throughout the Americas,Europe and Asia Pacific.It has 14 manufacturing and lab facilities in nine countries which serve its various end markets and participates in one joint venture.It has manufacturing facilities and labs in Freetown,Massachusetts;Chatham,Ne

136、w Jersey;Ossining,New York;Merry Hill,North Carolina;Kenedy,Texas;and Menomonee Falls,Wisconsin within the United States;Sao Paulo,Brazil;Shanghai,China;Sophia Antipolis,France;Hamburg,Germany;Mumbai,India;Mexico City,Mexico;Zwijndrecht,Netherlands and Poole,United Kingdom.Personal Care markets and

137、distributes its products in the Americas,Europe,the Middle East,Africa and Asia Pacific.For fiscal 2024,the following Personal Care product categories were 10%or greater of Ashlands total consolidated sales:Product%of Personal Care sales%of Ashland total consolidated salesCellulosics18%37%Polyvinylp

138、yrrolidones(PVP)22%23%SPECIALTY ADDITIVESSpecialty Additives offers industry-leading products,technologies and resources for solving formulation and product-performance challenges.Using synthetic and semisynthetic polymers derived from polyester and polyurethane-based adhesives,and plant and seed ex

139、tract,Specialty Additives offers comprehensive and innovative solutions for industrial applications.Key customers include manufacturers of paint,coatings and construction materials;packaging and converting companies;and oilfield service companies.The areas of expertise include organic and synthetic

140、chemistry,colloid science,rheology,structural analysis and microbiology.The solutions provide an array of properties,including thickening and rheology control,binding power,film formation,conditioning and deposition,colloid stabilization and suspension.Specialty Additives is composed of various end

141、use markets.Many of the products of the end markets are produced in shared manufacturing facilities,to better manage capacity and achieve desired returns.Specialty Additives provides products and services to over 30 industries.Ashland offers a broad spectrum of organo-and water-soluble polymers that

142、 are derived from both natural and synthetic resources.Product lines include derivatized cellulose polymers,synthetics,and vinyl pyrrolidone polymers that impart effective functionalities to serve a variety of industrial markets and specialized applications.Many of the products within Specialty Addi

143、tives function as performance additives that deliver high levels of end-user value in formulated products.In other areas,such as plastics and textiles,Specialty Additives products function as a processing aid,improving the quality of end products and reducing manufacturing costs.Specialty Additives

144、is a recognized leader in rheology solutions for waterborne architectural paint and coatings.Products include hydroxyethylcellulose(HEC),which provides thickening and application properties for interior and exterior paints,and nonionic synthetic associative thickeners(NSATs),which are APEO-free liqu

145、id synthetics for high-performance paint and industrial coatings.The Specialty Additives market complements its rheology offering with a broad portfolio of performance foam-control agents,surfactants and wetting agents,dispersants and pH neutralizers.Specialty Additives is a major producer and suppl

146、ier of cellulose ethers and companion products for the construction industry.These products control properties such as water retention,open time,workability,adhesion,stabilization,pumping,sag resistance,rheology,strength,appearance and performance in dry-mortar formulations.Specialty Additives is a

147、leading global manufacturer of synthetic-and cellulosic-based products for drilling fluids,oil-well cement slurries,completion and workover fluids,fracturing fluids and production chemicals.Specialty Additives offers the oil and gas industry solutions for drilling,stimulation,completion,cementing an

148、d production applications.7Specialty Additives operates throughout the Americas,Europe and Asia Pacific.It has 11 manufacturing and lab facilities in nine countries which serve its various end markets.Specialty Additives has manufacturing facilities and labs in Parlin,New Jersey;and Hopewell,Virgini

149、a within the United States and Doel-Beveren,Belgium;Nanjing and Shanghai,China;Alizay,France;Dusseldorf,Germany;Mumbai,India;Zwijndrecht,the Netherlands;Singapore,Singapore;and Newton Aycliffe,United Kingdom.Specialty Additives markets and distributes its products in the Americas,Europe,the Middle E

150、ast,Africa and Asia Pacific.For fiscal 2024,the following Specialty Additives products were 10%or greater of Ashlands total consolidated sales:Product%of Specialty Additives sales%of Ashland total consolidated salesCellulosics65%37%Polyvinylpyrrolidones(PVP)7%23%INTERMEDIATESIntermediates is a leadi

151、ng producer of BDO and related derivatives,including n-methylpyrrolidone.These products are used as chemical intermediates in the production of engineering polymers and polyurethanes,and as specialty process solvents in a wide array of applications including electronics,pharmaceuticals,water filtrat

152、ion membranes and more.BDO is also supplied to Life Sciences,Personal Care and Specialty Additives for use as a raw material.Key customers include Ashlands Life Sciences,Personal Care and Specialty Additives segments,general industrial manufacturers,plastics and polymers producers,pharmaceutical com

153、panies,agricultural firms and producers of electronic components and systems.Intermediates has a manufacturing facility in Lima,Ohio,while some derivatives are produced at Life Sciences facilities in Texas City,Texas and Calvert City,Kentucky.Intermediates markets and distributes its products in the

154、 Americas,Europe,and Asia Pacific.MISCELLANEOUSEnvironmental MattersAshland maintains a company-wide environmental policy overseen by the Environmental,Health,Safety and Quality Committee of Ashlands Board of Directors(the Board).Ashlands Environmental,Health,Safety,Quality and Regulatory Affairs(EH

155、SQ&RA)department has the responsibility to ensure that Ashlands businesses worldwide maintain environmental compliance in accordance with applicable laws and regulations.This responsibility is carried out via training;widespread communication of EHSQ&RA policies;information and regulatory updates;fo

156、rmulation of relevant policies,procedures and work practices;design and implementation of EHSQ&RA management systems;internal auditing;monitoring of legislative and regulatory developments that may affect Ashlands operations;assistance to the businesses in identifying compliance issues and opportuni

157、ties for voluntary actions that go beyond compliance;and incident response planning and implementation.Federal,state and local laws and regulations relating to the protection of the environment have a significant impact on how Ashland conducts its businesses.In addition,Ashlands operations outside t

158、he United States are subject to the environmental laws of the countries in which they are located.These laws include regulation of air emissions and water discharges,waste handling,remediation and product inventory,registration and regulation.New laws and regulations may be enacted or adopted by var

159、ious regulatory agencies globally.The costs of compliance with any new laws or regulations cannot be estimated until the manner in which they will be implemented has been more precisely defined.At September 30,2024,Ashlands reserves for environmental remediation and related environmental litigation

160、amounted to$221 million,reflecting Ashlands estimates of the most likely costs that will be incurred over an extended period to remediate identified conditions for which the costs are reasonably estimable,without regard to any third-party recoveries.Engineering studies,historical experience and othe

161、r factors are used to identify and evaluate remediation alternatives and their related costs in determining the estimated reserves for environmental remediation.Environmental remediation reserves are subject to 8uncertainties that affect Ashlands ability to estimate its share of the costs.Such uncer

162、tainties involve the nature and extent of contamination at each site and the extent of required cleanup efforts under existing environmental regulations.Although it is not possible to predict with certainty the ultimate costs of environmental remediation,Ashland currently estimates that the upper en

163、d of the reasonably possible range of future costs for identified sites could be as high as approximately$485 million.The largest reserve for any site is 21%of the remediation reserve.Ashland regularly adjusts its reserves as environmental remediation continues.Environmental remediation expense,net

164、of insurance receivables,amounted to$56 million in 2024 compared to$59 million in 2023 and$66 million in 2022.Product Control,Registration and Inventory-Many of Ashlands products and operations are subject to chemical control laws of the countries in which they are located.These laws include regulat

165、ion of chemical substances and inventories under the Toxic Substances Control Act(TSCA)in the United States and the Registration,Evaluation and Authorization of Chemicals(REACH)regulation in Europe as well as new cosmetic ingredients filings in China under the Cosmetics Supervision and Administratio

166、n Regulation(CSAR).Under TSCA,REACH,and CSAR additional testing requirements,documentation,risk assessments and registrations are occurring and will continue to occur and may adversely affect Ashlands costs of products produced in or imported into the European Union.Examples of other product control

167、 regulations include right to know laws under the Global Harmonized System(GHS)for hazard communication,regulation of chemicals used in the manufacture of pharmaceuticals and personal care products and that contact food under the Food,Drug and Cosmetics Act in the United States,the Framework Regulat

168、ion in Europe and other product control requirements for chemical weapons,drug precursors and import/export.The Green Deal in the EU,specifically Chemicals Strategy for Sustainability,will require additional information to be developed on hazard communication and risk assessment of both chemical sub

169、stances and finished products.New laws and regulations may be enacted or adopted by various regulatory agencies globally.The costs of compliance with any new laws or regulations cannot be estimated until the manner in which they will be implemented has been more precisely defined.Remediation-Ashland

170、 currently operates,and in the past has operated,various facilities at which,during the normal course of business,releases of hazardous substances have occurred.Additionally,Ashland has known or alleged potential environmental liabilities at a number of third-party sites.Federal and state laws,inclu

171、ding but not limited to the Resource Conservation and Recovery Act(RCRA),the Comprehensive Environmental Response,Compensation and Liability Act of 1980(CERCLA)and various other remediation laws,require that contamination caused by hazardous substance releases be assessed and,if necessary,remediated

172、 to meet applicable standards.Some of these laws also provide for liability for related damage to natural resources,and claims for alleged property and personal injury damage which can also arise related to contaminated sites.Laws in other jurisdictions in which Ashland operates require that contami

173、nation caused by such releases at these sites be assessed and,if necessary,remediated to meet applicable standards.Air-In the United States,the Clean Air Act(CAA)imposes stringent limits on facility air emissions,establishes a federally mandated operating permit program,allows for civil and criminal

174、 enforcement actions and sets limits on the volatile or toxic content of many types of industrial materials and consumer products.The CAA establishes national ambient air quality standards(NAAQS)with attainment deadlines and control requirements based on the severity of air pollution in a given geog

175、raphical area.Various state clean air acts implement,complement and,in many instances,add to the requirements of the federal CAA.The requirements of the CAA and its state counterparts have a significant impact on the daily operation of Ashlands businesses and,in many cases,on product formulation and

176、 other long-term business decisions.Other countries where Ashland operates also have laws and regulations relating to air quality.Ashlands businesses maintain numerous permits and emission control devices pursuant to these clean air laws.The United States Environmental Protection Agency(USEPA)has in

177、creased its frequency in reviewing the NAAQS.The USEPA has stringent standards for particulate matter,ozone and sulfur dioxide.Throughout 2022,2023 and 2024,state and local agencies continued to implement options for meeting the newest standards.Particulate matter strategies include dust control mea

178、sures for construction sites and reductions in emission rates allowed for industrial operations.Options for ozone include emission controls for certain types of sources,reduced limits on the volatile organic compound content of industrial materials and consumer products,and requirements on the trans

179、portation sector.Most options for sulfur dioxide focus on coal and diesel fuel combustion sources.It is not possible at this time to estimate the potential financial impact that these newest standards may 9have on Ashlands operations or products.Ashland will continue to monitor and evaluate these st

180、andards to meet these and all air quality requirements.Solid Waste-Ashlands businesses are subject to various laws relating to and establishing standards for the management of hazardous and solid waste.In the United States,Ashlands facilities are subject to RCRA and its regulations governing generat

181、ors of hazardous waste.Ashland has implemented systems to oversee compliance with the RCRA regulations.In addition to regulating current waste disposal practices,RCRA also addresses the environmental effects of certain past waste disposal operations,the recycling of wastes and the storage of regulat

182、ed substances in underground tanks.Ashland has the remediation liability for certain facilities subject to these regulations.Other countries where Ashland operates also have laws and regulations relating to hazardous and solid waste,and Ashland has systems in place to oversee compliance.Water-Ashlan

183、ds businesses maintain numerous discharge permits.In the United States,such permits may be required by the National Pollutant Discharge Elimination System of the Clean Water Act and similar state programs.Other countries have similar laws and regulations requiring permits and controls relating to wa

184、ter discharge.Climate Change and Related Regulatory Developments-Ashland has been collecting energy use data and calculating greenhouse gas(GHG)emissions for many years.Ashland evaluates the physical and transitional risks and opportunities from both climate change and the anticipated GHG regulation

185、s to facilities,products and other business interests,as well as the strategies commonly considered by the industrial sector to reduce the potential impact of these risks.These risks are generally grouped as impacts from legislative,regulatory and international developments,impacts from business and

186、 investment trends and impacts to Company assets from the physical effects of climate change.North American,European and other regional regulatory developments(most notably the pending SEC and approved Corporate Sustainability Reporting Directive(CSRD)climate disclosure regulations)are monitored con

187、tinuously for material impacts to Ashlands operations,and some facilities and subsidiaries are subject to promulgated rules.Proposed and pending climate legislation is monitored for impact and Ashland is taking steps to strengthen climate reporting to meet anticipated disclosure requirements.Other r

188、equirements requiring additional product level climate disclosures or supply chain transparency are also approved and in draft or finalized status and could impact the requirements for disclosure and restrictions on sourcing of raw materials.Regulations such as the PFAS restrictions and Microplastic

189、s ban in the EU have potential business interruption impacts where they limit the type and availability of raw materials that may be used.Business and investment trends are expected to drive an increase in the demand for products that improve energy efficiency,reduce energy use and increase the use

190、of renewable resources.At this time,Ashland cannot estimate the impact of this expected demand increase to its businesses.Physical effects from climate change have the potential to affect Ashlands assets in areas prone to sea level rise or extreme weather events much as they do the general public an

191、d other businesses.Due to the uncertainty of these matters,Ashland cannot estimate the impact at this time of GHG-related developments on its operations or financial condition.CompetitionAshland competes in the highly fragmented additives and specialty ingredients industries.The participants in thes

192、e industries offer a varied and broad array of product lines designed to meet specific customer requirements.Participants compete with service and product offerings on a global,regional and/or local level subject to the nature of the businesses and products,as well as the end-markets and customers s

193、erved.Competition is based on several key criteria,including product performance and quality,product price,product availability and security of supply,responsiveness of product development in cooperation with customers,customer service,industry knowledge and technical capability.Certain key competit

194、ors are significantly larger than Ashland and have greater financial resources,leading to greater operating and financial flexibility.The industry has become increasingly global as participants have focused on establishing and maintaining leadership positions outside of their home markets.Many of th

195、ese segments product lines face domestic and international competition,due to industry consolidation,pricing pressures and competing technologies.To improve its competitive position as Ashland narrows its focus,the Company is building and leveraging the Ashland corporate brand as a differentiator to

196、 create value and better communicate the capabilities,promise and scale of the Company,making it easier to introduce new product lines and applications.10Intellectual PropertyAshland has a broad intellectual property portfolio which is an important component of its business.Ashland relies on patents

197、,trade secrets,formulae and know-how to protect and differentiate its products and technologies.In addition,the reportable segments own valuable trademarks which identify and differentiate its products from its competitors.Ashland also uses licensed intellectual property rights from third-parties.Ra

198、w Materials and EnergyAshland purchases its raw materials from multiple sources of supply in the United States and other countries.Raw material supplies were available in quantities sufficient to meet demand in fiscal 2024 and 2023,which was a significant improvement over fiscal 2022 when raw and pa

199、ckaging materials were globally constrained.Similarly,energy costs,which are a significant component of production costs,stabilized in fiscal 2024 and 2023 after significant volatility in 2022.Research and DevelopmentAshlands program of research and development is focused on defining the needs of th

200、e marketplace and framing those needs into technology platforms.Ashland has the capability to develop and deliver the intellectual property required to grow and protect those platforms.Ashland is focused on developing new chemistries,market-changing technologies and customer driven solutions at nume

201、rous technology centers located in the Americas,Europe and the Asia Pacific regions.SeasonalityAshlands business may vary due to seasonality.Ashlands business units typically experience stronger demand during warmer weather months.Human CapitalEmployee Health and Safety-Cultivating a safety culture

202、is intentional at Ashland and is best shown by its commitment to a Zero Incident Culture(ZIC).ZIC begins with the vision,values,beliefs,and actions of Ashlands leaders demonstrating that zero incidents is possible.It means developing processes where compliance is the minimum expectation,allowing emp

203、loyees to proactively manage safety above compliance on the journey to zero.As an indication of its commitment to Responsible Care,Ashland obtained a third-party certification to RC14001,which includes the internationally recognized ISO 14001 certification and adds additional health,safety,security,

204、and chemical industry requirements.Currently,Ashland has 25 sites participating on a group RC14001 certification,including 13 international sites.Also,as part of its commitment to health and safety,18 of the Companys sites have obtained an additional ISO 45001 certification,an international health a

205、nd safety management system.As part of ZIC,the Company strives every day to achieve zero incidents.Ashland continues to make good progress on its journey.For the year ended September 30,2024,the Company had a Total Preventable Recordable Rate(TPRR)of 0.46 compared to 0.39 for the year ended Septembe

206、r 30,2023.Ashland has implemented several tools for communicating lessons learned from injuries,process safety incidents,and environmental releases.Immediately following an event,flash reports are developed and shared to communicate key lessons learned across the Company with a review call within 48

207、 hours with Ashlands Environmental,Health and Safety(“EHS”)leadership team and Operations Leadership.Additionally,incidents and root causes/corrective and preventive actions are reviewed monthly with Company leadership and EHS leaders globally to discuss areas for improvement and highlight the impor

208、tance of identifying and addressing management system errors.Ashland has implemented the“Good Catch”Program aimed at identifying underlying unsafe conditions or behaviors that could lead to an undesirable outcome.Employees are encouraged to report good catches that fall into one of three categories

209、substandard conditions,near misses,and suggestions.These are tracked with the goal of continuing to increase overall reporting of identified good catches year to year.Environmental-Ashland has a conscious and proactive mindset for sustainability and has established a renewable annual trust for ongoi

210、ng and future environmental remediation and related litigation cash outlays.The initiative follows Ashlands 11announcement in February 2021 to align its operations with the ambitious aim of the Paris Climate Accord to limit global temperature rise to 1.5C above preindustrial levels.At that time,Ashl

211、and also became a signatory to the United Nations Global Compact and is making the United Nations principles part of the Companys business strategy,culture,and day-to-day operations.Ashland has targets to reduce its environmental footprint(including energy usage,GHG emissions,and hazardous waste gen

212、eration).These targets and progress towards meeting them can be found on:https:/ is not incorporated by reference into the Annual Report on Form 10-K.Ashland is committed to ensuring compliance with applicable environmental,health,safety and security laws,regulations,technical specifications,and int

213、ernal standards,while adhering to high ethical standards.We are committed to continuously improving our processes and to providing products and services that throughout their life cycle involve minimum risk to people and the environment,while best meeting the needs of our customers.We strive to elim

214、inate or reduce emissions,discharges,and wastes from our operations and to promote energy efficiency and resource conservation throughout the value chain.Ashland also maintains an open dialogue with our employees and communities about environmental,health,safety,security,and product stewardship issu

215、es.We also work with governments,policy makers,advocacy groups and value chain partners to develop and promote laws,regulations and practices that improve human health and the environment.Human Capital Management-Ashland is committed to continuously evaluating and strengthening the growth-minded and

216、 innovative culture by attracting and developing exceptional global talent,supporting employees physical,emotional,and financial well-being,and recognizing and rewarding performance.To achieve the highest return,Ashland is building an inclusive and high-integrity organization where everyone belongs,

217、feels inspired to excel,and does the right thing.Ashland is committed to respecting the human and economic rights of others and does not tolerate the use of child or forced labor,slavery,or human trafficking in any of its facilities or operations.Ashland does not tolerate the physical punishment,abu

218、se,involuntary servitude or exploitation of any worker and expects our suppliers and contractors with whom we do business to uphold the same standards and will discontinue the business relationship with any individual or company that does not follow the same standards.Ashland builds a culture of wel

219、lness by empowering our employees,and their families,to make healthy decisions that lead to successful outcomes in and outside of work.The four components of Ashlands global wellbeing vision include health,work-life balance,physical fitness,and financial stability.We achieve this vision by offering

220、diverse and inclusive wellness programs and solutions to our employees that encourage and advance healthy lifestyles within the communities we are part of and the planet we share.As of September 30,2024,Ashland had approximately 3,200 employees who thrive on developing practical,innovative,and simpl

221、e solutions to complex problems for customers in more than 100 countries.The employees global demographics consist of approximately 68%male employees and approximately 32%female employees,and in the U.S.,approximately 21%of its employees self-identify as ethnically diverse.12Ashlands global footprin

222、t is geographically located as follows:Competitive Pay and Benefits-Ashland is committed to paying its employees in a fair and equitable manner,regardless of race or gender,and has implemented global total rewards tools to promote equitable remuneration.The Company provides a total compensation pack

223、age that is designed to be competitive with the markets in which it competes for talent.Ashland believes employees should be compensated equitably based on performance,skills,and experience.Ashland reviews pay equity annually in conjunction with its annual performance review,merit,bonus and promotio

224、n processes.The Company annually completes an in-depth analysis of its pay equity globally using a number of factors to determine if a pay gap exists based on any protected factors(gender,age,race,veteran status).Overall findings continue to be encouraging,identifying only a few employees annually t

225、hat had a disparity in pay requiring further analysis and corrective action.Ashland reviews each process annually to ensure that its policies,procedures,and training continue to provide pay equity within the Company.In June 2024,Ashland achieved certification as a Global Living Wage Employer by the

226、Fair Wage Network following a rigorous and thorough process in which compensation data for all employees was reviewed on an anonymous basis and steps were taken to remediate any pay gaps.A living wage is one that covers ones basic needs such as housing,food,water,healthcare,transportation,clothing a

227、nd education for the employee and their dependents.A living wage goes beyond simply fulfilling the local statutory minimum wage requirement.The Companys compensation programs are globally aligned,and,where possible,its total rewards plans include base salary,short and long-term incentives,benefits,f

228、inancial,and special recognition programs.The Company routinely reviews its total rewards practices in the markets in which it operates to ensure its plans allow for the recruitment and retention of the talent it needs to be successful.Ashland also offers a competitive global benefits program to sup

229、port employees through all life stages.The following benefit plans are available to employees depending on local markets in which the Company operates that include plan specific features such as on-site and on-demand resources:Health care benefits including medical,prescription,dental and/or visionW

230、ellness initiatives:Global EAP(employee assistance program)13Flu vaccination resourcesPaid time offVoluntary benefitsLife and accident coverageDisability coverageRetirement plansTuition reimbursementBusiness travel accidentInclusion and Diversity-In 2024,Ashland progressed its global inclusion and d

231、iversity strategy focused on belonging,accountability,community engagement,recruitment,and internal mobility.These priorities serve as the basis of the global and local objectives and initiatives that advance Ashlands collective progress towards equity.The Company and its leadership team are committ

232、ed to creating a collaborative environment that leverages the talents of a diverse global workforce to drive sustainable growth and innovation that creates value for its shareholders,customers,employees,and the communities in which it operates.Ashlands commitment to inclusion and diversity starts at

233、 the top with its Board and its executive leadership.The Board is comprised of individuals with diverse experience and credentials,selected for their business acumen and ability to challenge and add value to management.These directors have held significant leadership positions and bring a depth of e

234、xperience across a wide variety of industries,providing the Company with unique insights and fresh perspectives.The demographics of the Companys Board is 72%diverse,including females and ethnically diverse males.The Companys management is led by its President and Chief Executive Officer and the othe

235、r members of the Executive Committee(“EC”).The demographics of the EC include 30%women and 60%ethnic diversity.The chart below shows the Companys global gender diversity and US ethnic diversity progress over the past three years.The Company remains committed to making continued short and long-term p

236、rogress.14Talent Management-Ashland is dedicated to creating a purpose-driven people ecosystem that enables personal and professional growth at every level while minimizing risk to the business.The Company deploys a disciplined annual talent review and succession process to identify and develop a le

237、adership pipeline that accelerates business results,promotes internal mobility,and minimizes attrition.The talent management process includes a performance management process that seeks to provide employees with on-going feedback to enhance their performance in support of the Companys business objec

238、tives.As part of Ashlands commitment to professional development,it offers associates and bachelors undergraduate,graduate,and PhD tuition assistance to eligible employees,along with ongoing technical and professional development.In 2024,the Company elevated the skillset of its leaders to support th

239、e career development of their employees and provided continued learning on inclusion and allyship.Ashland conducted its third annual global Culture Survey,with 82%response rate,which provided valuable insight to prioritize investments in the tools,resources,and processes that will make a positive im

240、pact on employees well-being,engagement,and career growth.Ashland remains committed to continuously listening and evolving its people practices aligning with and drive the Companys purpose and business success.Forward-Looking StatementsThis Annual Report on Form 10-K contains forward-looking stateme

241、nts within the meaning of Section 27A of the Securities Act of 1933,as amended,and Section 21E of the Securities Exchange Act of 1934,as amended(the“Exchange Act”).These forward-looking statements are not historical facts and generally are identified by words such as“anticipates,”“believes,”“estimat

242、es,”“expects,”“is likely,”“predicts,”“projects,”“forecasts,”“objectives,”“may,”“will,”“should,”“plans,”and“intends”and the negative of these words or other comparable terminology.Although Ashland believes that its expectations are based on reasonable assumptions,such expectations are subject to risk

243、s and uncertainties that are difficult to predict and may be beyond Ashlands control.As a result,Ashland cannot assure that the expectations contained in such statements will be achieved.Important factors that could cause actual results to differ materially from those contained in such statements ar

244、e discussed under“Use of estimates,risks and uncertainties”in Note A of Notes to Consolidated Financial Statements in this Annual Report on Form 10-K.For a discussion of other factors and risks that could affect Ashlands expectations and operations,see“Item 1A.Risk Factors”in this Annual Report on F

245、orm 10-K.ITEM 1A.RISK FACTORS The following discussion of“risk factors”identifies the most significant factors that may adversely affect Ashlands business,operations,financial position or future financial performance.This information should be read in conjunction with Managements Discussion and Anal

246、ysis and the consolidated financial statements and related notes incorporated by reference into this Annual Report on Form 10-K.The following discussion of risks is designed to highlight what Ashland believes are important factors to consider when evaluating its expectations.These factors could caus

247、e future results to differ from those in forward-looking statements and from historical trends.Risks Related to the Companys Business Operations,Financial Performance and GrowthAshland has set aggressive growth goals for its businesses which may be impacted by such risks as the failure to optimize t

248、he use of Ashlands tangible and intangible assets,the failure to identify and successfully integrate acquisition targets,and/or unexpected costs and liabilities associated with strategic acquisitions.If they materialize,these risks could lead to reduced sales,impairment of goodwill or intangible ass

249、ets,and other adverse effects on the Companys financial condition and results of operations.Ashlands failure to fully achieve one or more of its aggressive growth goals or meet its long-term objectives could negatively impact Ashlands potential value and its businesses.One of the most important risk

250、s is that Ashland might fail to adequately execute its business strategy and growth plans by not optimizing the use of its physical and intangible assets.Aspects of that risk include changes to the global economic environment,changes to the competitive landscape,attraction and retention of skilled e

251、mployees,the potential failure of product innovation plans,failure to comply with existing or new regulatory schemes,failure to maintain a competitive cost structure and other risks outlined in greater detail in this Item 1A.In addition,Ashland,as part of its growth goals,continuously evaluates acqu

252、isition candidates.If Ashland is unable to successfully identify and integrate acquired businesses,Ashland could fail to achieve any expected increases in sales and operating results,which could have a 15material adverse effect on Ashlands financial results.Ashlands ability to achieve the anticipate

253、d financial benefits from any acquisition transactions may not be realized due to any number of factors,including,but not limited to,unsuccessful integration efforts,unexpected or underestimated liabilities or increased costs,fees,expenses and charges related to such transactions.Such adverse events

254、 could result in a decrease in the estimated fair value of goodwill or other intangible assets established as a result of such transactions,triggering an impairment.These and other factors could have a material adverse effect on our financial condition and results of operations.Business disruptions

255、from natural,operational and other catastrophic risks could seriously harm Ashlands operations and financial performance.In addition,a catastrophic event at one of Ashlands facilities or involving its products or employees could lead to liabilities that could further impair its operations and financ

256、ial performance.Business disruptions,including those related to operating hazards inherent with the production of chemicals,natural disasters,severe weather conditions,supply or logistics disruptions,increasing costs for energy,temporary plant and/or power outages,information technology systems and

257、network disruptions,cyber-security breaches,terrorist attacks,armed conflicts,war,public health crises,fires,floods or other catastrophic events,could seriously harm Ashlands operations,as well as the operations of its customers and suppliers,and may adversely impact Ashlands financial performance.T

258、hese events could result in reduced demand for Ashlands products,make it difficult or impossible for Ashland to manufacture its products or deliver products to its customers or to receive raw materials from suppliers,or create delays and inefficiencies in the supply chain.In addition to leading to a

259、 serious disruption of Ashlands businesses,a catastrophic event at one of our facilities or involving our products or employees could lead to substantial legal liability to or claims by parties allegedly harmed by the event.Furthermore,because catastrophic events are inherently uncertain,Ashlands bu

260、siness continuity plans may not address every potential scenario and may not fully protect it from all such events.In addition,insurance maintained by Ashland to protect against property damage,loss of business and other related consequences resulting from catastrophic events is subject to various d

261、eductibles and coverage limitations,depending on the nature of the risk insured.This insurance may not be sufficient to cover all of Ashlands damages or damages to others in the event of a catastrophe.In addition,insurance related to these types of risks may not be available now or,if available,may

262、not be available in the future at commercially reasonable rates.Climate change and related resource impacts may lead to supply chain disruptions,operational impacts,and geopolitical events which could result in impacts to raw material pricing,lack of product availability,and decreased sales.Ashland

263、sources a large number of raw materials from third party suppliers globally.These products include both natural and synthetic materials derived from plants,animal products,organic and petroleum based raw materials.Disruptions to the global supply chain due to climate related impacts or geopolitical

264、events are possible and exist as external risk factors that the Company cannot control.These events could limit the supply of key raw materials to the Company,or could have significant impacts to pricing.Ashland has manufacturing operations in areas vulnerable to coastal storms which may increase in

265、 magnitude and impact due to climate change.Increasingly large and unprecedented weather events may pose a risk to business operations in vulnerable areas.Storms could cause business interruptions,incur additional restoration costs,and impact product availability and pricing.Consumer preference is i

266、ncreasingly impacted by awareness of and a response to climate change.Consumers are increasingly demanding responsibly sourced and manufactured products.An inability to respond to consumer demands through environmental,social and governance(ESG)innovation could lead to a loss of sales to competitors

267、 providing more sustainable product offerings.Energy availability and pricing has been impacted by geopolitical events and may be impacted by climate related legislation and regulations.As climate legislation increases in many countries,the availability of conventional and nonrenewable energy may be

268、 increasingly limited and prices may continue to increase.Where demand exceeds energy capacity,energy disruptions such as brown out or black out events are possible,leading to business interruption and quality/operational impacts.Failure to respond to or mitigate this risk could lead to increased co

269、st and business impacts.Globally,the availability of fresh,potable water is a growing concern,where water withdrawal can exceed the rates of surface and groundwater replenishment in critical basins,rivers,or other bodies of water.This concern continues to increase for Ashland 16and for the global su

270、pply chain where fresh water is a key resource for manufacturing operations.Failure to respond to this risk could lead to business interruptions and impact the availability and pricing of product.Ashland sources several key natural raw materials that contain processed timber,palm,soy,and other harve

271、sted or farmed raw materials.Deforestation is an increasing concern where the irresponsible harvest of these raw materials can lead to loss of critical forests and habitats.Additional sourcing of these materials is under increasing scrutiny due to deforestation,and the availability of these raw mate

272、rials may be limited in the future.Failure to source responsibly and respond to or mitigate the risk could lead to business impacts and increased cost.As part of its commitment to supporting climate change response efforts,Ashland has committed to 2032 targets through the Science Based Targets Initi

273、ative(SBTi)which were approved by SBTi in November of 2023.These targets are aligned with the objective of limiting global warming to no more than 1.5C above preindustrial levels.Ashlands sustainability commitments are key to stakeholders and a differentiator for Ashland.Failure to meet stated commi

274、tments could lead to reputational and business impacts.Ashlands customers could change their products in a way that reduces the demand for Ashlands products.Ashland produces and sells specialty materials that are used by its customers for a broad range of applications.Many of these Ashland materials

275、 become part of end products that are sold to consumers.Changes in consumer preferences and demands can lead to certain Ashland customers making changes to their products.In other instances,Ashlands customers may change their products or production techniques to take advantage of newer technologies,

276、alternative chemistries,more effective formulations,or improved processes,or in response to various market,technical or regulatory changes.Such changes in Ashlands customers products or production techniques may cause these customers to reduce consumption of Ashlands products or eliminate their need

277、 entirely.Ashland may not be able to supply products that meet the customers new requirements.Such lost sales opportunities may not be replaced by those offering equal revenue potential or margin.If Ashland fails to develop new products and new applications of existing products,it may face loss of m

278、arket share,margins and cash flow.Ashlands substantial global operations subject it to risks of doing business in foreign countries,which could adversely affect its business,financial condition and results of operations.Greater than half of Ashlands net sales for fiscal 2024 were to customers outsid

279、e of North America.Ashland expects sales from international markets to continue to represent an even larger portion of the Companys sales in the future.Also,a significant portion of Ashlands manufacturing capacity is located outside of the United States.Accordingly,Ashlands business is subject to ri

280、sks related to the differing legal,political,cultural,social and regulatory requirements and economic conditions of many jurisdictions.The global nature of Ashlands business presents difficulties in hiring and maintaining a workforce in certain countries.Fluctuations in exchange rates may affect pro

281、duct demand and may adversely affect the profitability in U.S.dollars of products and services provided in foreign countries.In addition,foreign countries may impose additional withholding taxes or otherwise tax Ashlands foreign income,or adopt other restrictions on foreign trade or investment,inclu

282、ding currency exchange controls.The imposition of new tariffs or trade quotas,or an impairment of existing trade agreements is also a risk that could impair Ashlands financial performance.Certain legal and political risks are also inherent in the operation of a company with Ashlands global scope.Ash

283、lands ability to do business and execute its growth strategies could be adversely affected by legal and political changes or other changes to trade policy and trade relationships.Ashland could also be impacted negatively if the ongoing trade disputes between the United States and China,or those betw

284、een the United States and the E.U.were to worsen.In addition,it may be more difficult for Ashland to enforce its agreements or collect receivables through foreign legal systems.There is a risk that foreign governments may nationalize private enterprises in certain countries where Ashland operates.In

285、 certain countries or regions,terrorist activities and the response to such activities may threaten Ashlands operations more than those in the United States.In Europe,the effect of economic sanctions imposed on Russia and/or Russias reaction to the sanctions could adversely impact Ashlands performan

286、ce and results of operations.The risks associated with localized or regional armed conflict in many parts of the world remain high and could disrupt and/or adversely impact Ashlands businesses.Social and cultural norms in certain countries may 17not support compliance with Ashlands corporate policie

287、s including those that require compliance with substantive laws and regulations.Also,changes in general economic and political conditions in countries where Ashland operates,particularly in Europe,the Middle East and emerging markets,are a risk to Ashlands financial performance.As Ashland continues

288、to operate its business globally,its success will depend,in part,on its ability to anticipate and effectively manage these and other related risks.Adverse developments in the global economy and potential disruptions of financial markets could negatively impact Ashlands customers and suppliers,and th

289、erefore have a negative impact on Ashlands results of operations.A global or regional economic downturn may reduce customer demand or inhibit Ashlands ability to produce and sell products.Ashlands business and operating results are sensitive to global and regional economic downturns,credit market ti

290、ghtness,declining consumer and business confidence,fluctuating commodity prices,volatile exchange rates,inflation or changes in interest rates,sovereign debt defaults and other challenges,including those related to international sanctions and acts of aggression or threatened aggression that can affe

291、ct the global economy.In the event of adverse developments or stagnation in the economy or financial markets,Ashlands customers may experience deterioration of their businesses,reduced demand for their products,cash flow shortages and difficulty obtaining financing.As a result,existing or potential

292、customers might delay or cancel plans to purchase products,which includes customer destocking of their own inventories,and may not be able to fulfill their obligations to Ashland in a timely fashion.Further,suppliers may experience similar conditions,which could impact their ability to fulfill their

293、 obligations to Ashland.A weakening or reversal of the current economic conditions in the global economy or a substantial part of it could negatively impact Ashlands business,results of operations,financial condition and ability to grow.Ashlands substantial indebtedness may adversely affect our abil

294、ity to pursue certain strategic acquisitions and other business opportunities,inhibit our flexibility in responding to changing market conditions,and impede our ability to generate revenue.Ashland maintains a substantial amount of debt.Ashlands substantial indebtedness could adversely affect its bus

295、iness,results of operations and financial condition by,among other things:requiring Ashland to dedicate a substantial portion of its cash flow from operations to pay principal and interest on its debt,which would reduce the availability of Ashlands cash flow to fund working capital,capital expenditu

296、res,acquisitions,execution of its growth strategy and other general corporate purposes;limiting Ashlands ability to borrow additional amounts to fund working capital,capital expenditures,acquisitions,debt service requirements,execution of its growth strategy and other purposes;making Ashland more vu

297、lnerable to adverse changes in general economic,industry and regulatory conditions and in its business by limiting Ashlands flexibility in planning for,and making it more difficult for Ashland to react quickly to,changing conditions;placing Ashland at a competitive disadvantage compared with those o

298、f its competitors that have less debt and lower debt service requirements;making Ashland more vulnerable to increases in interest rates if debt is refinanced;andmaking it more difficult for Ashland to satisfy its financial obligations.In addition,Ashland may not be able to generate sufficient cash f

299、low from its operations to repay its indebtedness when it becomes due and to meet its other cash needs.If Ashland is not able to pay its debts as they become due,it could be in default under its credit facility or other indebtedness.Ashland might also be required to pursue one or more alternative st

300、rategies to repay indebtedness,such as selling assets,refinancing or restructuring its indebtedness or selling additional debt or equity securities.Ashland may not be able to refinance its debt or sell additional debt or equity securities or its assets on favorable terms,if at all,and if Ashland mus

301、t sell its assets,it may negatively affect its ability to generate revenues.18Risks Related to CompetitionFailure to develop and market new products and production technologies could impact Ashlands competitive position and have an adverse effect on its sales,businesses,and results of operations.The

302、 specialty additives and materials industry is subject to periodic technological change and ongoing product improvements.In order to maintain margins and remain competitive,Ashland must successfully develop and introduce new products or improvements that appeal to its customers and ultimately to glo

303、bal consumers.Ashland plans to grow earnings,in part,by focusing on developing markets and solutions to meet increasing demand in those markets,including demand for personal care and pharmaceutical products which are subject to lengthy regulatory approval processes.The fast change in Ashlands indust

304、ry and those of its customers necessitates that Ashland continue the development of new technologies to replace older technologies whose demand or market position may be fading.Ashlands efforts to respond to changes in customer demand in a timely and cost-efficient manner to drive growth could be ad

305、versely affected by difficulties or delays in product development,including the inability to identify viable new products,successfully complete research and development,obtain regulatory approvals,obtain intellectual property protection or gain market acceptance of new products.Due to the lengthy de

306、velopment process,technological challenges and intense competition,Ashlands products may not achieve substantial commercial success.In all business segments and especially within Personal Care,there is an increasing awareness of and competition for innovations relating to more sustainable products w

307、ith increasing attributes such as naturality and biodegradability,or materials sourced from bio-based raw materials.Ashland sees increasing pressure to innovate and provide solutions with these features to stay competitive and to differentiate the Company from competitors in key markets.Failure to i

308、nnovate could result in a loss of business to competitors who offer similar or improved sustainable product portfolios.The competitive nature of Ashlands markets may delay or prevent Ashland from passing increases in raw materials or energy costs on to its customers.In addition,certain of Ashlands s

309、uppliers may be unable to deliver products or raw materials or fulfill contractual requirements.The occurrence of either event could result in decreased sales,increased costs,and adverse impacts to the valuation of Ashlands inventory.Rising and volatile raw material prices,especially those of hydroc

310、arbon derivatives,cotton linters or wood pulp,may negatively impact Ashlands costs,results of operations and the valuation of its inventory.Similarly,energy costs are a significant component of certain of Ashlands product costs.Ashland is not always able to raise prices in response to such increased

311、 costs,and its ability to pass on the costs of such price increases is dependent upon market conditions.Likewise,reductions in the valuation of Ashlands inventory due to market volatility may not be recovered and could result in losses.Ashland purchases certain products and raw materials from suppli

312、ers,often pursuant to written supply contracts.If those suppliers are unable to meet Ashlands orders in a timely manner or choose to terminate or not fulfill contractual arrangements,Ashland may not be able to make alternative supply arrangements.Also,domestic and global government regulations relat

313、ed to the manufacture,transport or import of certain raw materials may impede Ashlands ability to obtain those raw materials on commercially reasonable terms.Certain Ashland businesses rely on agricultural output of clary sage,guar,and cotton linters,and the availability of these materials can be se

314、verely impacted by crop yields,weather events,and other factors.If Ashland is unable to obtain and retain qualified suppliers under commercially acceptable terms,its ability to manufacture and deliver products in a timely,competitive and profitable manner or grow its business successfully could be a

315、dversely affected.Ashland operates in highly competitive markets which places downward pressure on prices and margins and may adversely affect Ashlands businesses and results of operations.Ashland operates in highly competitive markets,competing against a number of domestic and foreign companies.Com

316、petition is based on several key criteria,including product performance and quality,product price,product availability and security of supply,responsiveness of product development in cooperation with customers and customer service,as well as the ability to bring innovative products or services to th

317、e marketplace.Certain key competitors are significantly larger than Ashland and have greater financial resources,leading to greater operating and financial flexibility.As a result,these competitors may be better able to withstand changes in conditions within the relevant industry,changes in the pric

318、es of raw materials and energy and changes in general economic conditions.In addition,competitors pricing decisions could compel Ashland to decrease its prices,19which could negatively affect its margins and profitability.Additional competition in markets served by Ashland could adversely affect mar

319、gins and profitability and could lead to a reduction in market share.Also,Ashland competes in certain markets that are declining and has targeted other markets for growth opportunities.Competitive and pricing pressures could also impact Ashlands production volumes,which can in turn reduce cost effic

320、iency.If Ashlands strategies for dealing with declining markets and leveraging opportunity markets are not successful,its businesses and results of operations could be negatively affected.Risks Related to Human CapitalAshlands success depends upon its ability to attract and retain key employees and

321、the identification and development of talent to succeed senior management.Ashlands success depends on its ability to attract and retain key personnel.Ashland relies heavily on its senior management team as these executives are primarily responsible for determining the strategic direction of Ashlands

322、 business and for executing its growth strategy.Therefore,Ashlands future success depends,in part,on the continued service of its senior management team.The loss of any member of the senior management team could impact the Companys execution of its growth strategy and also be viewed negatively by in

323、vestors and analysts,which may cause the price of Ashlands common stock to decline.In addition,Ashlands success further depends on the Companys ability to identify and develop talent to succeed its senior management team and other key positions throughout the organization.If Ashland fails to identif

324、y and develop successors,the Company is at risk of being harmed by the departures of these key employees.The inability to recruit,retain and develop key personnel or the unexpected loss,voluntarily or otherwise,of key personnel may adversely affect Ashlands operations.Risks Related to Information Te

325、chnology,Cybersecurity and Intellectual PropertyAshland uses information technology(IT)systems to conduct business and these IT systems are at risk of potential disruption and cybersecurity threats.Ashlands businesses rely on IT systems to operate efficiently and in some cases,to operate at all.Ashl

326、and employs third parties to manage and maintain a significant portion of its IT systems,including,but not limited to data centers,IT infrastructure,network,client support and end user services,as well as the functions of backing up and securing those systems.A partial or complete failure of Ashland

327、s IT systems or those of our third parties managing,providing or servicing them for any amount of time more than several hours could result in significant business disruption causing harm to Ashlands reputation,results of operations or financial condition.In addition,the nature of our businesses,the

328、 markets we serve,and the extensive geographic profile of our operations make Ashland a target of cybersecurity threats.Cybersecurity threats in general are increasing and becoming more advanced and could occur as a result of the activity of hackers,employee error or employee misconduct.In addition,

329、bad actors are becoming more sophisticated in using various techniques and tools,including artificial intelligence,for malicious purposes.We have in the past experienced cybersecurity threats and other incidents,and we expect such incidents to continue in varying degrees.Ashland utilizes various cyb

330、ersecurity controls and governance procedures to protect against such disruptions;however,these measures may not be sufficient for all eventualities.A failure in these controls and procedures may prevent us from detecting a failure or breach of our information systems and delay our ability to respon

331、d.Such failure of our controls and procedures and/or a breach of our IT systems could lead to the loss and destruction of trade secrets,confidential information,proprietary data,intellectual property,customer and supplier data,and employee personal information and we may be required by law to notify

332、 the impacted individuals and/or make other disclosures.These events could expose us to customer litigation,regulatory actions and costs related to the reporting and handling of such a failure or breach,all of which could disrupt our business operations and adversely affect Ashlands relationships wi

333、th business partners,harm our brands,reputation,and financial results.Ashland may not be able to effectively protect or enforce its intellectual property rights.Ashland relies on the patent,trademark,trade secret and copyright laws of the United States and other countries to protect its intellectual property rights.The laws of some countries may not protect Ashlands intellectual property rights to