8-K
Huntsman CORP (HUN)
8-K
2021-11-09
For: 2021-11-09
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) ofthe Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 9, 2021
Huntsman Corporation
(Exact name of registrant as specified in its charter)
| Delaware | 001-32427 | 42-1648585 |
|---|---|---|
| (State or other jurisdiction | (Commission | (IRS Employer |
| of incorporation) | File Number) | Identification No.) |
| 10003 Woodloch Forest Drive | ||
| --- | --- | |
| The Woodlands, Texas | 77380 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code:
(281) 719-6000
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under<br>the Securities Act (17 CFR 230.425) |
|---|---|
| ¨ | Soliciting material pursuant to Rule 14a-12 under<br>the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under<br>the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under<br>the Exchange Act (17 CFR 240.13e-4(c)) |
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Securities Registered pursuant to Section 12(b) of the Act:
| Registrant | Title of each class | Trading Symbol | Name of each exchange on which registered |
|---|---|---|---|
| Huntsman Corporation | Common Stock, par value $0.01 per<br> share | HUN | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ¨
Item 7.01. Regulation FD Disclosures.
On November 9, 2021, Huntsman Corporation (the “Company”) hosted its Investor Day that, among other matters, provided an in-depth overview of the Company’s growth strategy and financial targets. A copy of the Company’s presentation is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The presentation is also available on the Company’s website at www.huntsman.com/investor-day. The information contained on the Company’s website shall not be deemed part of this report.
On the same day, the Company issued a press release announcing the highlights of its Investor Day presentation. The full text of the press release is furnished as Exhibit 99.2 to this Current Report on Form 8-K.
The information contained in Item 7.01 to this Current Report on Form 8-K and Exhibits 99.1 and 99.2 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Number | Description of Exhibits |
|---|---|
| 99.1 | Huntsman<br> Corporation Investor Day Presentation |
| 99.2 | Press<br> Release dated November 9, 2021 |
| 104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HUNTSMAN CORPORATION |
|---|
| /s/ IVAN MARCUSE |
| Vice President, Investor Relations |
Dated: November 9, 2021
3
Exhibit 99.1
| 1<br>Huntsman<br>Investor Day<br>November 9, 2021 | |
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| 2<br>General Disclosure<br>Forward-Looking Statements<br>This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking<br>statements include statements concerning our plans, objectives, goals, strategies, future events, future revenue or performance, capital expenditures, financing needs, plans or intentions relating to<br>acquisitions or strategic transactions, business trends and any other information that is not historical information. When used in this presentation, the words “estimates,” “expects,” “anticipates,” “likely,”<br> “projects,” “outlook,” “plans,” “intends,” “believes,” “forecasts,” or future or conditional verbs, such as “will,” “should,” “could” or “may,” and variations of such words or similar expressions are intended to<br>identify forward-looking statements. These forward-looking statements, including, without limitation, management’s examination of historical operating trends and data, are based upon our current<br>expectations and various assumptions and beliefs. In particular, such forward-looking statements are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect<br>the company's operations, markets, products, prices and other factors as discussed in the Company’s filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate<br>to, but are not limited to, ongoing impact of COVID-19 on our operations and financial results, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at<br>manufacturing facilities, timing of proposed transactions, reorganization or restructuring of the Company’s operations, including any delay of, or other negative developments affecting the ability to implement<br>cost reductions and manufacturing optimization improvements in the Company’s businesses and to realize anticipated cost savings, and other financial, operational, economic, competitive, environmental,<br>political, legal, regulatory and technological factors. Any forward-looking statement should be considered in light of the risks set forth under the caption “Risk Factors” in our Annual Report on Form 10-K for<br>the year ended December 31, 2020, which may be supplemented by other risks and uncertainties disclosed in any subsequent reports filed or furnished by the Company from time to time. All forward-looking<br>statements apply only as of the date made. Except as required by law, the Company undertakes no obligation to update or revise forward-looking statements to reflect events or circumstances that arise after<br>the date made or to reflect the occurrence of unanticipated events.<br>Non-GAAP Financial Measures<br>This presentation contains financial measures that are not in accordance with generally accepted accounting principles in the U.S. ("GAAP"), including adjusted EBITDA, adjusted EBITDA from discontinued<br>operations, adjusted net income (loss), adjusted diluted income (loss) per share, free cash flow, adjusted free cash flow, and net debt. For more information on the non-GAAP financial measures used by the<br>Company and referenced in this presentation, including definitions and reconciliations of non-GAAP measures to GAAP, please refer to “Non-GAAP Reconciliation” hyperlink available in the “Financials”<br>section of the Company’s website at www.huntsman.com/investors.<br>The Company does not provide reconciliations of forward-looking non-GAAP financial measures to the most comparable GAAP financial measures on a forward-looking basis because the Company is unable<br>to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing<br>and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such<br>adjustments has not yet occurred, are out of the Company's control and/or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the<br>unavailable information.<br>Third-Party Trademarks<br>Any third-party trademarks displayed in this presentation are not owned by the Company, and no relationship between the Company and any third party is implied.<br>2021 Huntsman Investor Day | |
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| 3<br>Agenda<br>2021 Investor Day<br>Start Time Event Presenter<br>10:00 AM 30 mins Welcome Reception Management Team<br>10:30 AM 20 mins Company Overview Peter Huntsman<br>Chairman, President and CEO<br>10:50 AM 30 mins Advanced Materials* Scott Wright<br>Division President<br>11:20 AM 30 mins Performance Products* Chuck Hirsch<br>Division President<br>11:50 AM 20 mins Sustainability* Brittany Benko<br>Senior Vice President, EH&S and CSO<br>12:10 PM 20 mins Break<br>12:30 PM 35 mins Polyurethanes* Tony Hankins<br>CEO Asia Pacific, Division President<br>1:05 PM 20 mins Textile Effects* Rohit Aggarwal<br>Division President<br>1:25 PM 15 mins Financial Overview Phil Lister<br>Executive Vice President and CFO<br>1:40 PM 20 mins Q&A Peter Huntsman<br>Chairman, President and CEO<br>Phil Lister<br>Executive Vice President and CFO * Includes 5-10 minutes for audience Q&A<br>3 2021 Huntsman Investor Day | |
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| 4<br>Company<br>Overview<br>Peter Huntsman<br>Chairman, President and CEO | |
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| 5 2021 Huntsman Investor Day 5<br>Our Mission<br>Enriching Lives<br>Through Innovation<br>For 50 years, our employees have been using science and<br>ingenuity to create innovations that play a critical role in the<br>everyday lives of many millions of people. We work in deep<br>partnership with our customers to create solutions that help<br>make people’s lives more sustainable, effective and<br>comfortable. | |
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| 6<br>Divested<br>Current<br>Creating a Simplified, Higher Value-Added Portfolio<br>Company Overview<br>2021 Huntsman Investor Day<br>2005 2017 Today<br>What We No Longer Sell<br> • Benzene<br> • Butadiene<br> • Ethylene Glycol<br> • Ethylene Oxide<br> • LAB<br> • Polyethylene<br> • Propylene<br> • Polypropylene<br> • Polystyrene<br> • Titanium Dioxide<br> • Toluene<br> • Styrene<br> • Surfactants<br> • US PO/MTBE<br> • Xylene<br>What We Sell Today<br> • Specialty Formulations<br> • Formulations for Textile Industry<br> • Maleic Anhydride<br> • Differentiated Components<br> • Specialty Chemical Additives<br> • Commodity MDI<br>MDI Urethanes<br>Advanced<br>Materials<br>Amines & Maleic<br>Surfactants<br> & LAB Upstream<br>Intermediates<br> & Other<br>PO/MTBE<br>Titanium<br>Dioxide<br>Polymers<br>Base<br>Chemicals<br>Polyurethanes<br>(MDI Urethanes)<br>Advanced<br>Materials<br>Performance<br>Products<br>(Amines &<br>Maleic)<br>Textile<br>Effects | |
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| 7<br>Focus on Growing EBITDA Margin<br>and Free Cash Flow Conversion<br>2021 Huntsman Investor Day<br>Company Overview<br>40%+ FCF<br>Conversion<br>Deliver on Cost Optimization<br>Plans & Synergy Savings<br>Invest in High Margin, High<br>Return Projects Strategic Bolt-on M&A<br>Upgrade Polyurethanes Portfolio<br>for Improved Margin & Reduced<br>Volatility<br>.. Geismar MDI Splitter<br>.. E-GRADE®, UPEC, Polyurethane catalysts<br>.. MIRALON®<br>7<br>18% – 20%<br>Adj. EBITDA Margin<br>Financial<br>Targets<br>Maintain Investment<br>Grade Rating<br>HB<br>S<br>Commodity<br>MDI<br>Formulated<br>Systems<br>Global<br>Platforms<br> &<br>Specialty<br>Solutions<br>Series 1<br>Upvalue<br>Upvalue<br>Volatility<br>Low<br>High<br>Low<br>High<br>Volatility<br>High<br>Low<br>Note: Free Cash Flow defined as net cash provided by operating activities less capital expenditures. | |
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| 8<br>Transformation<br>2021 Huntsman Investor Day<br>Company Overview<br>8<br>2016 2018 3Q 2021<br>Adj. EBITDA Margin 12% 15% 16%<br>Credit Rating High Yield High Yield Investment Grade<br>Net Leverage 3.4x 1.3x 0.9x<br>Shareholder Return<br>- Dividends $0.50 per share $0.65 per share $0.75 per share<br>Shareholder Return<br>- Buybacks No Yes Yes | |
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| 9<br>Significant Progress since Our 2018 Investor Day<br>Company Overview<br>2021 Huntsman Investor Day 2021 Huntsman Investor Day 9<br>Since 2018<br>Repurchased $682<br>million of shares as of<br>September 2021<br>January 2020<br>Divested Chemical<br>Intermediates and<br>Surfactants businesses<br>to Indorama Ventures for<br>~$2 billion<br>May 2020<br>Acquired CVC Thermoset<br>Specialties for ~$300 million<br>to expand its Advanced<br>Materials specialty portfolio<br>December 2020<br>Completed divestiture of<br>non-controlling interest in<br>Venator for ~$100 million<br>that facilitated a capture of<br>$150 million cash tax loss<br>benefit<br>Feb 2021<br>Jeanne McGovern<br>appointed to Board of<br>Directors (appointed Audit<br>Committee Chair Oct 2021)<br>November 2021<br>Secured Albemarle’s<br>agreement to pay full<br>arbitration award of<br>$665 million<br>February 2019<br>Achieved Investment<br>Grade Ratings<br>U.S. Navy (Retired)<br>Vice Admiral Jan E Tighe<br>appointed to Board of<br>Directors<br>February 2020<br>Acquired Icynene-<br>Lapolla for ~$350<br>million to expand its<br>world-class<br>downstream spray<br>foam business<br>October 2020<br>Divested India-based DIY<br>Consumer Adhesives<br>business for ~$285<br>million, including the<br>additional $28 million in<br>earnout received in May<br>2021 (~15x multiple)<br>January 2021<br>Acquired Gabriel<br>Performance Products for<br>~$250 million to complement<br>its recent acquisition of CVC<br>Thermoset and further<br>broaden its Advanced<br>Materials specialty portfolio<br>April 2021<br>Announced<br>dividend increase<br>of 15% to $0.75<br>per year<br>November 2021<br>Announced new<br>share repurchase<br>program of $1 billion<br>June 2020<br>Cynthia L Egan<br>and Sonia Dula<br>appointed to<br>Board of<br>Directors | |
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| 10<br>Huntsman’s Portfolio Today<br>2021 Huntsman Investor Day<br>Company Overview<br>Note: All figures reflect Huntsman Corporation continuing operations.<br>Polyurethanes Performance Products Advanced Materials Textile Effects Total<br>3Q21 LTM<br>Sales Revenue<br>by Region<br>3Q21 LTM Sales Revenue<br>3Q21 LTM Adj. EBITDA<br>3Q21 LTM Adj. EBITDA<br>Margin %<br>$1.3 billion $4.7 billion $0.8 billion $7.8 billion $1.1 billion<br>$295 million $862 million $93 million $1.2 billon $177 million<br>22% 19% 12% 16% 16%<br>33%<br>27%<br>32%<br>8%<br>US & Canada Europe<br>Asia Pacific Rest of World<br>7%<br>16%<br>62%<br>15%<br>US & Canada Europe<br>Asia Pacific Rest of World<br>29%<br>36%<br>26%<br>9%<br>US & Canada Europe<br>Asia Pacific Rest of World<br>43%<br>26%<br>26%<br>5%<br>US & Canada Europe<br>Asia Pacific Rest of World<br>36%<br>26%<br>30%<br>8%<br>US & Canada Europe<br>Asia Pacific Rest of World<br>Key End<br>Markets<br> • Insulation<br> • Adhesives, coatings, elastomers &<br>footwear<br> • Automotive<br> • Construction materials<br> • Other industrial markets<br> • Apparel<br> • Furnishings<br> • Transportation<br> • Protective fabrics<br> • Aerospace<br> • Transportation<br> • Infrastructure<br>- Power<br>- Coatings & construction<br> • Construction & industrial applications<br> • Transportation<br> • Adhesives<br> • Coatings<br> • Elastomers<br>Key Competitors<br> • Coatings & adhesives<br> • Construction materials<br> • Polyurethane additives<br> • Fuel & lubricant additives<br> • Gas treating<br> • Electronics & E-Mobility | |
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| 11<br>Where We are Going (2022 – Beyond)<br>Company Overview<br>Grow Differentiated<br>.. High return internal capital projects<br>.. M&A disciplined, bolt-on acquisitions<br>.. New product development<br>.. Upgrade commodity molecules<br>Generate 40%+ Free Cash<br>Flow<br>.. Capital expenditure discipline<br>.. Increase operating leverage<br>.. Working capital management<br>Improve EBITDA Margin<br>.. Cost optimization<br>.. Upvaluing low margin products<br>.. Commercial Excellence<br>.. Drive to 18% – 20% margin<br>Commitment to Capital Return &<br>Investment Grade<br>.. Regularly evaluate dividend payout<br>.. Committed to an annual repurchase program<br>.. Maintain an investment grade balance sheet<br>Today, we announce a new $1 billion share repurchase authorization(1)<br>2021 Huntsman Investor Day 11 (1) Retired existing share repurchase program | |
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| 12<br>Strategic Intent Across Portfolio<br>Focus on Quality over Quantity<br>Company Overview<br>2021 Huntsman Investor Day 12<br>In Last 5 Years, the Divisions delivered…<br>Polyurethanes<br>.. Grew differentiated volume: +5%<br>.. Deselected commodity MDI volume: -2%<br>.. Acquired IFS, Demilec and Icynene-Lapolla, formed<br>Huntsman Building Solutions<br>.. Divested Port-Neches PO/MTBE<br>Performance Products<br>.. Grew Performance Amines volume: +2%<br>.. Maleic Anhydride and Ethyleneamines volume: Flat<br>.. Commercial excellence and increased emphasis on value<br>over volume<br>.. Acquired remaining 50% of Maleic Anhydride joint-venture<br>in Europe<br>.. Divested Chemical Intermediates and Surfactants business<br>Advanced Materials<br>.. Grew specialty volume : +2%<br>.. Deselected commodity volume: -16%<br>.. Acquired CVC Thermoset Specialties and Gabriel<br>Performance Products<br>.. Divested India-based DIY Consumer Adhesives business<br>Textile Effects<br>.. Grew specialty volume: +7%<br>.. Deselected non-specialty volume: -1%<br>.. Focused on cash generation and commercial excellence<br>improvement<br>Note: Volume growth percent represents last 5 Year CAGR (2016 to 2021)<br>.. Grow differentiated portfolio, deselect commodity<br>.. Acquire higher margin bolt-on targets at attractive return profiles<br>.. Divest non-core assets | |
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| 13<br>The Road to an Improved EBITDA Margin<br>Financial Overview<br>2021 Huntsman Investor Day<br>Initiatives to add 300-350 bps to<br>Adj. EBITDA Margin<br>Current Cost<br>Optimization &<br>Synergies<br>~$35M Fixed Cost Reduction<br>Aerospace<br>Recovery ~$45M Adj. EBITDA Improvement<br>Key Capex Projects<br>Geismar MDI Splitter ~$45M<br>PP Growth Projects ~$35M<br>New Optimization<br>Program<br>Polyurethanes Optimization ~$60M<br>GBS Expansion ~$25M<br>Supply Chain Optimization ~$15M<br>Enhancement of<br>Portfolio<br>Well-positioned balance sheet for<br>further bolt-on M&A opportunities<br>Full Implementation<br>24-36 months<br>2021 Huntsman Investor Day 13<br>$0<br>0.0%<br>$0<br>$0<br>~40bps<br>~40bps<br>~60bps<br>~120bps<br> >80bps<br>$0<br>Current Cost Optimization<br> & Synergies<br>Aerospace<br>Recovery<br>Return on Announced<br>Capex Projects<br>New Optimization<br>Program<br>Portfolio<br>Enhancements<br>(2020-2023) (2024) (2022-2024) (2022-2024) (2022-2023) ~100bps of Margin Improvement Annually | |
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| 14<br>Balanced Capital<br>Allocation Strategy<br>2021 Huntsman Investor Day<br>Company Overview<br>Maintain<br>Investment Grade<br>Balance Sheet<br>Net Debt Leverage<br> ≤ 2 times<br>on average<br>$276M in 2018<br>$208M in 2019<br>$96M in Q1 2020<br>$102M in Q3 2021<br>Share Repurchases<br>Bolt-on Acquisitions Attractive Dividend<br>$0.75 per year<br>Increased 15% in April 2021<br>Organic Investments<br>Geismar MDI Splitter<br>(United States)<br>Amines for Semiconductors<br>(United States)<br>Low-Emission PU Catalysts<br>(Hungary)<br>Carbonates for EV<br>(United States)<br>Polyols for Spray Insulation<br>(Taiwan)<br>MIRALON® for Carbon<br>Capture<br>(United States)<br>New share repurchase program of $1B,<br>retired existing program | |
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| 15<br>Since 2018: Strengthened Our Balance Sheet and<br>Accelerated Return of Capital to Shareholders<br>2021 Huntsman Investor Day<br>Company Overview<br>$2.2B<br>$1.0B<br>2018-2021<br>Total Cash Inflows<br>Divestitures Adj. FCF<br>$1.4B<br>$0.8B<br>$0.6B<br>$0.7B<br>2018-2021<br>Total Cash Outflows<br>Acquisitions Net Debt Reduction<br>Dividends Buybacks<br>$0<br>$1,000<br>$2,000<br>$3,000<br>$4,000<br>$5,000<br>$6,000<br>$7,000<br>2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021<br>YTD<br>Cumulative Dividends Cumulative Buybacks Cumulative Net Debt Reduction<br>Since 2006 Huntsman spent<br>From 2006 to 2017 We Significantly Reduced Debt<br>$3.6B(2)<br>on Debt Reduction (net)<br>$1.7B<br>on Dividends<br>$0.8B<br>on Buybacks<br>2018 to Today, $3.2B of Cash<br>generated from Divestitures &<br>Adj. Free Cash Flow(1)<br>Since 2018, Cash was used to support<br>Bolt-on Acquisitions, Buybacks,<br>Dividends & Net Debt Reduction<br>(1) Adj. Free Cash Flow excludes the taxes paid in connection with the sale of our Chemical Intermediates Businesses and the sale of our India-based DIY business.<br>(2) Does not reflect costs associated with early the extinguishment or issuance of debt<br>USD in Millions | |
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| 16<br>Albemarle Litigation Settlement<br>2021 Huntsman Investor Day<br>Company Overview<br>On October 28, 2021 Huntsman won an arbitration award against Albemarle<br>Corporation for fraud and breach of contract<br>On November 4, 2021 Albemarle agreed to waive its appeal and accelerate full<br>payment of award, paying Huntsman $332.5 million by December 3, 2021 and another<br>$332.5 million by May 2, 2022<br>Net of legal fees but before taxes, Huntsman will receive in total $465 million<br>Proceeds will be used for as follows:<br>1. Share Repurchases<br>- Minimum 50% of Award, net of tax<br>- This is additional to the annual minimum of $160 million of repurchases<br>- The minimum 2022 buyback will be in excess of $300 million<br>- Repurchases to be completed within 12 months of receiving each tranche of cash<br>2. Investments<br>- Remaining cash to be allocated for corporate investments including business<br>optimization restructuring and bolt-on acquisitions<br>16 | |
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| 17<br>Textile Effects<br>Bangladesh completion ~$15M<br>Continued shift towards specialty<br>Global leading solutions provider to<br>sustainability<br>On the Horizon for Huntsman<br>2021 Huntsman Investor Day<br>Company Overview<br>Polyurethanes<br>Geismar MDI Splitter starting up Q2 2022,<br>~$45M full run-rate by end of 2023<br>Continued growth in Huntsman Building<br>Solutions globally<br>New margin improvement initiatives ~$60M<br>Performance Products<br>Three high return projects with expected<br>beneficial operations by 2023, ~$35M in 2024<br>Commercial excellence & maintain global<br>leading positions in Amines & Maleic<br>Anhydride<br>Maintain margins at >20%<br>Advanced Materials<br>Aerospace recovery on the horizon ~$45M<br>Additional acquisition / optimization<br>synergies by 2023 ~$12M<br>Return business to >20% margin<br>Continued bolt-on acquisitions<br>17 Note: All values refer to Adj EBITDA | |
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| 18<br>Advanced<br>Materials<br>Scott Wright<br>Division President<br>2021 Huntsman Investor Day | |
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| 19<br>$0<br>$200<br>$400<br>$600<br>$800<br>$1,000<br>$1,200<br>2017 2018 2019 2020 3Q21 LTM<br>Commodity Specialty<br>Core Specialty Markets Recovering<br>Advanced Materials — Robust & Diverse<br>Specialty Materials Portfolio<br>2021 Huntsman Investor Day<br>Advanced Materials<br>Specialty Markets Focus(1)<br>Balanced Regional Exposure(1)<br>12%<br>17%<br>61%<br>10%<br>Aerospace<br>Transportation<br>Infrastructure<br>Commodity<br>29%<br>36%<br>26%<br>9%<br>U.S. & Canada<br>Europe<br>Asia Pacific<br>Rest of World<br>$1.1B 3Q21 LTM sales revenue<br>$177M 3Q21 LTM Adj. EBITDA<br>~3,500 products<br>16 manufacturing sites<br>~1,750 associates<br>~2,500 customers<br>15+<br>chemical process<br>technologies covering:<br>thermoset resins,<br>tougheners, curatives,<br>modifiers<br>19 (1) Represents 3Q21 LTM Net Sales Revenue<br>Net Sales Rev (USD in Millions)<br>Aero gap | |
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| 20<br>Primary Growth Levers<br>2021 Huntsman Investor Day<br>Advanced Materials<br>Integrating M&A &<br>Realizing Synergies<br>.. Acquisition integration on track<br>.. Additional $12M synergies by 2023<br>.. Solid platform for continued bolt-on M&A<br>Benefitting from Aerospace<br>Recovery<br>.. Passenger travel recovers by 2024<br>.. OEM build rates recovering, single-aisle leads<br>wide-body<br>Growing Organically<br>through Innovation<br>.. Strong pipeline of new business and<br>innovation<br>.. Automotive transitioning to greater<br>EV/Hybrid growth<br>.. Focused on market transforming mega-trends:<br> ⎻<br>Sustainability; electrification; durability & efficiency<br>Pioneering Step-Out<br>Technology<br>.. Exciting MIRALON® technology<br>.. Transforming methane to advanced carbon<br>materials & hydrogen<br>.. Scale-up of technology underway<br>20 | |
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| 21<br>Acquisitions Enhance Specialty Portfolio<br>Integrating M&A and Realizing Synergies<br>2021 Huntsman Investor Day<br>Advanced Materials<br>Net M&A Benefit of $57M Adj. EBITDA at <5x multiple Integration and Synergies on Track<br>.. $11M synergy run-rate delivered<br>.. $12M additional synergies by 2023<br>.. Complementary technology portfolio provides long-term innovation<br>opportunity<br>.. CVC & Gabriel acquisitions<br> ⎻<br>$76M post synergy Adj. EBITDA at 7.2x multiple<br>.. India DIY disposal $19M Adj. EBITDA at 15x multiple<br>Commodity Materials Specialty Components Formulations Valuable Effects OEMs<br>Epichlorahydrin<br>Bis-Phenol A<br>Base Resins<br>Specialty Resins<br>Tougheners<br>Curing Agents<br>Modifiers & Additives<br>Composites<br>Adhesives<br>Resin Systems<br>Light-weighting<br>Adhesion & Joining<br>Electrical Insulation<br>Protection<br>Heat Management<br> <5% of Adj. EBITDA >95% of Adj. EBITDA | |
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| 22<br>0<br>2<br>4<br>6<br>8<br>10<br>12<br>14<br>16<br>18<br>20<br>2000 2005 2010 2015 2020 2025 2030 2035 2040<br>Actual Traffic Upside Downside<br>Passenger Travel Recovers from COVID<br>by 2024<br>Technology<br>Inflection<br>COVID Growth Growth<br>Greater than 15% CAGR through 2025 at >> average Advanced Materials Adj. EBITDA margin<br>Benefitting from Aerospace Recovery<br>2021 Huntsman Investor Day<br>Advanced Materials Overview<br>Commercial<br>Military<br>Interiors & Maintenance<br>22 CAGR assumes 4.5% World GDP and 4% Global Industrial Production for 2022 per Oxford Economics<br>Source: Management estimates<br>Increasing Exposure to Single Aisle Driven<br>by Technology Adoption<br>0<br>100<br>200<br>300<br>400<br>500<br>600<br>0 200 400 600 800 1000<br>Revenue $000 / shipset<br># Aircraft per platform<br>A-350<br>B-787<br>B-737<br>A-320<br>B-777X<br>A-220<br>= 2025 Revenue $M<br>Revenue Passenger KM (billions) | |
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| 23<br>0<br>20<br>40<br>60<br>80<br>100<br>120<br>2018 2020 2022 2024 2026 2028 2030<br>ICE Hybrid Electric<br>Electric Vehicle Transformation and Innovation<br>Drive Growth<br>2021 Huntsman Investor Day<br>Advanced Materials Overview<br>Strong Growth from E-Vehicles Transition Shift to E-Vehicles Requires More<br>Advanced Material<br>Power trains<br>Adhesives<br>Electronics<br>Million Vehicles Advanced Material content kg / vehicle<br>Composites<br>Coatings<br>4x<br>CAGR assumes 4.5% World GDP and 4% Global Industrial Production for 2022 per Oxford Economics<br>Source: Global auto production data from LMC Automotive<br>23 Source: Management estimates<br>0<br>5<br>10<br>15<br>20<br>25<br>30<br>35<br>ICE Electric<br>Greater than 7% CAGR through 2025 at > average Advanced Materials Adj. EBITDA margin | |
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| 24<br>Greater than 6% CAGR through 2025 at average Advanced Materials Adj. EBITDA margin<br>$18B<br>$73B $26B<br>$45B<br>EU USA China India<br>Infrastructure Investment and Innovation<br>Drive Growth<br>Advanced Materials Overview<br>Sustainability: Renewable Energy Grid<br>Build Drives Infrastructure Demand<br>Durability & Efficiency:<br>Infrastructure Protection<br>Significant post-Covid global grid investments<br>Generation<br>Distribution<br>Transmission<br>Protection<br>Transformed corrosion resistance<br>Improved fire resistance<br>Extended infrastructure lifetime<br>24 2021 Huntsman Investor Day CAGR assumes 4.5% World GDP and 4% Global Industrial Production for 2022 per Oxford Economics<br>Source: Management estimates | |
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| 25<br>Pioneering Step-Out Technology<br>Advanced Materials Overview<br>2021 Huntsman Investor Day<br>Problem<br>Oil & gas industry has long-term<br>issue with methane / natural gas<br>Methane has 28x more global<br>warming potential than CO2<br>MIRALON® Solution, Market Applications & Scale-Up Plan<br>2010 Technology development<br>2015 Lab scale & experimental sales<br>(c. $10,000/kg)<br>2019 Micro plant & experimental sales<br>(c. $2,000/kg)<br>2021 Mini plant & experimental sales<br>(c. $1,000/kg)<br>2022 Pilot Plant & commercial sales<br>(c. $100/kg)<br>2024 1st Commercial scale plant<br>Step change in unit cost<br>2024+<br>Replicate, scale & improve<br>(<$10/kg)<br>Revenue ~$50M p.a.by 2025<br>Methane<br>1150oC<br>H2<br> ‘Turquoise’<br>hydrogen<br>C<br>MIRALON®<br>2021 Huntsman Investor Day | |
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| 26<br>Driving to Deliver Sustainable<br>High-Value Growth<br>2021 Huntsman Investor Day<br>Advanced Materials Overview<br>Strong Specialty Market Position<br>.. Strong position in attractive transforming specialty markets<br>.. Highly qualified applications create cycle robustness<br>.. Aerospace full market recovery by 2024<br>Innovation & Bolt-on Acquisitions Boost Growth<br>.. On track to deliver $23M in acquisition synergies by 2023<br>.. Robust pipeline of new innovations to capture opportunities from mega-trends<br> ⎻<br>E-vehicles, Corrosion resistant infrastructure<br>Exciting Carbon Capture Opportunity<br>.. Transformative growth opportunity in the carbon capture space<br>.. Developing scale of MIRALON® methane to hydrogen & structural carbon technology<br>26<br>Adj. EBITDA (2022)<br>$225M – $240M<br>Adj. EBITDA Margin Target<br>20% – 25% | |
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| 27<br>Performance<br>Products<br>Chuck Hirsch<br>Division President<br>2021 Huntsman Investor Day | |
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| 28<br>Simplified Portfolio with Leading<br>Global Positions<br>Performance Products<br>2021 Huntsman Investor Day<br>Simplified portfolio comprises leading<br>franchises in specialty and differentiated<br>products<br>Leading global positions across Performance Amines<br>Ethylene<br>Propylene<br>Ethylene Oxide<br>Ethylene Glycol<br>Ethanolamines<br>Surfactants<br>LAB<br>Propylene Oxide<br>Propylene Glycol<br><br>Divested PP Business Divested PU Business<br>Performance<br>Amines<br>Divested Businesses<br>in 2020 Divested Business in 2020<br>#1 in Polyetheramines (PEA)<br>#1 in Diglycolamine (DGA)<br>#2 in Specialty PU Catalysts<br>#1 in Alkylene Carbonates in<br>Americas (only producer)<br>2021 Huntsman Investor Day 28<br>#1 in Heavy Ethyleneamines globally<br>#1 in Maleic Anhydride in North America and Europe<br>Performance<br>Amines<br>Maleic<br>Anhydride<br>Ethyleneamines | |
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| 29<br>Business Dynamics<br>Performance Products<br>2021 Huntsman Investor Day<br>$1.3B 3Q21 LTM sales revenue<br>$295M 3Q21 LTM Adj. EBITDA<br>~350 products<br>10 manufacturing sites<br>~800 associates<br>900+ customers<br>15+ chemical process<br>technologies<br>6% of sales of products<br>introduced in the last 5 years<br>(1) Represents 3Q21 LTM Net Sales Revenue 2021 Huntsman Investor Day 29<br>$0<br>$200<br>$400<br>$600<br>$800<br>$1,000<br>$1,200<br>$1,400<br>$1,600<br>2017 2018 2019 2020 3Q21 LTM<br>Performance Amines Ethyleneamines Maleic Anhydride<br>USD in Millions<br>43%<br>26%<br>26%<br>5%<br>U.S. & Canada<br>Europe<br>Asia Pacific<br>Rest of World<br>End Market Breakdown(1) Net Sales Revenue by Product Family(1)<br>Regional Mix(1)<br>22%<br>15%<br>13% 8% 8% 3%<br>3%<br>31%<br>Coatings & Adhesives<br>Construction<br>Fuels & Lubricants<br>Composites<br>Polyurethane Additives<br>Advanced Technologies<br>Gas Treating<br>Other | |
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| 30<br>What is Performance Products?<br>Performance Products<br>Amines(1) Maleic Anhydride(1)<br>Strategy<br>Innovate, grow and invest in Performance Amines<br>.. Execute on announced capital projects<br>(E-GRADE®, UPEC, Polyurethane catalysts)<br>.. Demand driven by sustainable solutions for cleaner energy and<br>energy conservation<br>Maximize profitability in Ethyleneamines with focus on<br>customers, operational and commercial excellence<br>Strategy<br>Maximize profitability with focus on customers, operational<br>and commercial excellence<br>Markets Markets<br>(1) Represents 3Q21 LTM Net Sales Revenue<br>28%<br>13%<br>10% 10%<br>8%<br>6%<br>5%<br>4%<br>16%<br>Coating & Adhesives<br>Fuels & Lubricants<br>Composites<br>Polyurethane Additives<br>Agrochemicals<br>Oil Field Technology<br>Advanced Technologies<br>Gas Treating<br>Other<br>49%<br>15% 12%<br>7%<br>7%<br>5%<br>5%<br>Construction<br>Industrial Markets<br>Fuels & Lubricants<br>Paper<br>Water<br>Coating & Adhesives<br>Other<br>30 2021 Huntsman Investor Day | |
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| 31<br>Performance Amines Sales Revenue(1)<br>Strategic Focus on Growth Markets in<br>Performance Amines<br>Performance Products<br>2021 Huntsman Investor Day<br>.. Focused on specialty and<br>differentiated products into<br>high-growth markets<br>.. Demand driven by<br>sustainable solutions for:<br> • Cleaner energy (wind, clean<br>fuels, gas treating and EV)<br> • Energy efficiency (light-<br>weighting in composites,<br>durability in coating &<br>adhesives, and process<br>efficiency in diverse<br>applications)<br>15%<br>6%<br>5%<br>3%<br>3%<br>2%<br>23%<br>16%<br>27%<br>Polyurethane Additives (5%)<br>Gas Treating (3%)<br>Pigment Dispersions (4%)<br>Fuels (5%)<br>Polymers Modification (7%)<br>Coatings & Adhesives (3%)<br>Composites (8%)<br>Other(2)<br>Selective<br>Growth<br>Markets<br>Markets<br>for Profit<br>Maximization<br>(1) Represents 3Q21 LTM Net Sales Revenue<br>(2) Other (e.g., Agrochemical, Oil Field, Home & Personal Care, Other)<br>68%<br>32%<br>Performance<br>Amines Ethyleneamines<br>Total Amines<br>Sales Revenue<br>Strategic<br>Growth<br>Markets<br>Advanced Technologies<br>(Electronics: 10%, EV: 27%)<br>[(%) represents market CAGR ] | |
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| 32<br>ULTRAPURE™<br>Ethylene Carbonates Gas Treating Wind Carbon Capture Low-Emission<br>Polyurethane Systems<br>Sustainability: Core to Our Business<br>Performance Products<br>2021 Huntsman Investor Day<br>Focused on bringing sustainable solutions to our customers<br>.. Lithium-ion battery electrolyte<br>solvent<br>.. Only producer and largest<br>supplier of ethylene carbonate<br>in North America<br>.. Critical to the reliable operation<br>and long working life of lithium-<br>ion batteries<br>.. Enables refineries and natural<br>gas plants to produce low-sulfur<br>fuels that are better for the<br>environment<br>.. Enables the removal of sulfur<br>and carbon dioxide<br>.. Facilitates growth of LNG<br>market<br>.. Largest global producer of<br>Polyetheramines, a critical<br>component for wind turbine<br>blades<br>.. JEFFAMINE® products extend<br>the working time needed for<br>manufacturing longer blades<br>.. Leading producer of amines for<br>carbon dioxide capture from<br>industrial processes<br>.. Uniquely positioned to develop<br>new amines with reduced<br>energy requirements<br>.. Integrating captured carbon into<br>our other processes like cyclic<br>carbonates<br>.. Enables energy conservation<br>through polyurethane insulation<br>(e.g., spray foam, cold chain)<br>.. Low-emission amines for<br>reduced exposure to volatile<br>organic compounds | |
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| 33<br>Innovation pipeline of greater than $100M in sales revenue in 2024 (excluding announced capital investments)<br>Innovation Underpins Growth in Performance Amines<br>Performance Products<br>2021 Huntsman Investor Day<br>.. Higher purity amines for semiconductor manufacturing<br> ⎻<br>New E-GRADE® Amines — adding E-GRADE® capability to<br>broaden range of purified products, including quaternary amines<br>such as E-GRADE® THEMAH SLM<br>.. Fuel additive components for high-efficiency engines<br> ⎻<br>New Polyetheramine Additives — deposit control agents for<br>improved fuel economy<br>.. Low-emission amines for polyurethane foam catalysis<br> ⎻<br>New PU Catalyst — low-emission PU catalysts for insulation<br>applications that are compatible with environmentally friendly<br>HFO blowing agents<br>Americas<br>.. Molecular synthesis<br>.. Application research<br>.. Process development<br>.. Pilot facility<br>.. Catalyst R&D<br>.. Licensing support<br>.. Technical service<br>Europe<br>.. Molecular synthesis<br>.. Application research<br>.. Process development<br>.. Pilot facility<br>.. Catalyst R&D<br>.. Technical service<br>Asia<br>.. Molecular synthesis<br>.. Application research<br>.. Process development<br>.. Pilot facility<br>.. Licensing support<br>.. Technical service<br>Areas of Innovation Focus R&D Footprint | |
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| 34<br>2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025<br>Electronics Sales (Net Sales Volume)<br>Innovate, Grow & Invest: Semiconductors<br>Performance Products<br>$400<br>$600<br>$800<br>$1,000<br>$1,200<br>2017 2018 2019 2020 2021 2022 2023 2024 2025<br>USD in Millions<br>E-GRADE® High-Purity Amines Formulated Cleans Market: Driven by<br>Semiconductor Demand and Complexity<br>.. Huntsman manufactures high-purity amines used in formulated<br>cleaning solutions for semiconductor manufacturing<br> ⎻<br>Uniquely positioned with broad product portfolio of high-purity<br>amines<br>.. Announced expansion at Conroe, Texas, with beneficial<br>operations in 2023<br> ⎻<br>~$10M Adj. EBITDA contribution in 2024 and ramping up<br>thereafter<br> ⎻<br>Capital investment of ~$35M<br>.. Formulated cleans market for semiconductor manufacturing<br>growing at 8% - 12% annually<br> ⎻<br>Growth due to increasing chip demand and complexity as well as<br>replacement of traditional cleaning solutions<br>.. Supplier base with long qualification timelines (3 - 5 years);<br>high barriers to entry once qualified<br>2021 Huntsman Investor Day 34 Source: Management estimates<br>Formulated Cleans Market Size<br>Source: Linx Consulting | |
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| 35<br>Innovate, Grow & Invest: Electric Vehicles (EV)<br>Performance Products<br>2021 Huntsman Investor Day<br>ULTRAPURE™ Ethylene Carbonate (UPEC) Electrolyte and EV Markets: Driven by<br>Electrification Revolution<br>.. Huntsman produces UPEC, a critical component for lithium-<br>ion batteries<br> ⎻<br>Only North American manufacturer of alkylene carbonates<br> ⎻<br>UPEC forms a Solid Electrolyte Interface (SEI) that is selective<br>for Li+ ions and protects the electrode layers<br>.. Announced capacity expansion of UPEC production at<br>Conroe, Texas, facility in mid-2023<br> ⎻<br>~$10M Adj. EBITDA contribution in 2024 and ramping up<br>thereafter<br> ⎻<br>Capital investment of ~$25M<br>.. The battery market is rapidly expanding and regionalizing<br> ⎻<br>Electric vehicles represent greater than 60% of the battery<br>market currently<br>.. Electrolyte market has grown ~30% annually during last 10<br>years<br> ⎻<br>UPEC represents ~25% of the electrolyte and protects the<br>battery anode from exfoliation<br>0<br>10<br>20<br>30<br>40<br>2017 2018 2019 2020 2021 2022 2025 2030 2035<br>NA EU China ROW<br>Global EV Market<br>Millions of Vehicles … … …<br>Source: Avicenne 35 (1) High purity ethylene carbonates are ~1/2 of total solvents by weight<br>Solvent<br>Lithium Salt<br>Other Additives<br>Electrolyte<br>~15%<br>~10%<br>Electrolyte<br>Separator<br>Other Additives<br>Anode<br>Cathode<br>~75%<br>~30%<br>% of electrolyte by volume<br>% of solvent<br>by weight<br>Lithium -Ion Battery<br>% of battery cost<br>~42%<br>~11%<br>~9%<br>~8%<br>~30%<br>ULTRAPURE™<br>Ethylene<br>Carbonate | |
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| 36<br>Innovate, Grow & Invest: Polyurethane Catalysts<br>Performance Products<br>2021 Huntsman Investor Day<br>JEFFCAT® Polyurethane Catalysts Polyurethane Catalyst Market: Driven by Megatrends<br>and Sustainability<br>.. Huntsman is a leader in low-emission and<br>conventional catalysts<br>.. Announced expansion at Petfurdo,<br>Hungary, with beneficial operations in<br>2023<br> ⎻<br>~$15M Adj. EBITDA contribution in 2024<br>and ramping up thereafter<br> ⎻<br>Capital investment of ~$60M . Polyurethanes market growing at 5% - 6% annually, driven by megatrends<br>and sustainability<br>Commodity Conventional Low Emission<br>Segment Automotive<br>Furniture<br> & Bedding Spray Foam<br>Other<br>Construction<br>Megatrend • Strengthening<br>EHS<br>regulations<br> • Better<br>comfort &<br>quality of life<br> • Better<br>comfort &<br>quality of life<br> • Perception of<br>odor &<br>chemical<br>release from<br>material<br> • Energy<br>conservation<br> • Controlling<br>global<br>warming<br> • Emissions<br>reduction<br> • Quality &<br>performance<br> • Energy<br>conservation<br> • Controlling<br>global<br>warming<br>Focus Area • Emission<br>reduction<br> • Aldehyde<br>scavenging<br> & impurity<br>reduction<br> • Solution for<br>odor<br>reduction<br> • Emissions<br>reduction<br> • Emissions<br>reduction<br> • Supporting<br>HFO based<br>technologies<br> • New catalyst<br>platform to<br>replace<br>conventional<br>amine<br>catalysts<br> • Supporting<br>HFO based<br>technologies<br>Net Sales Volume<br>36 Source: Management estimates | |
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| 37<br>Top Priorities to Unlock Value and<br>Reset the Bar<br>Performance Products<br>2021 Huntsman Investor Day<br>Drive High Degree of Discipline with Focus on Commercial Excellence<br>.. New disciplined management approach<br>.. Focusing resources and building capability, including data analytics<br>.. Implementation of tools and structure to support commercial excellence<br>Maximize Value in Maleic Anhydride and Ethyleneamines<br>.. Maximize profitability and cash flow<br>.. Focus on customers, operational and commercial excellence<br>Innovate, Grow & Invest in Specialties<br>.. Innovate, grow and invest in Performance Amines<br> ⎻<br>Cost-effective, targeted investment in high-growth products<br>.. Execute on announced capital projects (E-GRADE®, UPEC, Polyurethane catalysts)<br>37<br>Adj. EBITDA (2022)<br>$360M – $380M<br>Adj. EBITDA Margin Target<br>20% – 25% | |
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| 38<br>Sustainability<br>Brit Benko<br>Senior Vice President EHS and Manufacturing<br>Excellence and Corporate Sustainability Officer<br>2021 Huntsman Investor Day | |
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| 39<br>Excludes any role to reduce<br>non-combustion sources<br>Chemical industry makes up<br>~3%<br>of total emissions…<br> …while providing emission<br>reducing innovations to<br>~80%<br>of the economy<br>Our Products Enable Sustainability<br>for Our Customers<br>2021 Huntsman Investor Day<br>Sustainability<br>(1) WRI has Livestock/Manure and Chemicals tied at 6% globally<br>(2) Global fashion is estimated to make up 3-10% of emissions (McKinsey)<br>Sources: US EPA and European Environmental Agency<br>Chemical Industry Emissions: We Are the Catalyst for Sustainability<br>Share of greenhouse gas emissions (Co2e)<br>29%<br>27%<br>21%<br>6% 6% 5%<br>3% 3%<br>Buildings Transport Industry Farm/Fish to Fork Cement/Process<br>Emissions<br>Livestock/Manure Chemicals Landfills<br>39 | |
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| 40<br>~750M tons<br>of lifetime emissions avoided<br>each year by our product solutions<br>Our Solutions Drive<br>Significant Emission<br>Reductions<br>Source: Management estimates assured by a third-party review 2021 Huntsman Investor Day 40<br>Sustainability | |
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| 41<br>Our Emissions Footprint Continues to Decrease<br>2021 Huntsman Investor Day<br>Sustainability<br>ENERGY PURCHASES<br>Source: 2021 Sustainability Reports of Huntsman and peers<br>Lower Operational Intensity from Recent Portfolio Moves<br>One of the Lowest Emitters<br>RECENT DIVESTITURES CLOSER TO CUSTOMER<br>On Site Volume<br>-80%<br>Total Intensity<br>-40%<br>GHG Emissions (Million Metric Tons CO2e) Intensity (kg CO2e / kg Product)<br>1.9<br>0.4<br>0.9<br>0.8<br> -<br> 0.5<br> 1.0<br> 1.5<br> 2.0<br> 2.5<br> 3.0<br>Pre Divestiture (2019) Post Divestiture<br>Scope 2<br>Scope 1<br>0.3<br>0.1<br>0.1<br>0.2<br> -<br> 0.1<br> 0.2<br> 0.3<br> 0.4<br>Pre Divestiture (2019) Post Divestiture<br>Scope 2<br>Scope 1<br>SUPPLY CHAIN FOCUS<br>0<br>5<br>10<br>15<br>20<br>25<br>30<br>35<br>40<br>Peer<br>1<br>Peer<br>2<br>Peer<br>3<br>Peer<br>4<br>Peer<br>5<br>Peer<br>6<br>Peer<br>7<br>HUN Peer<br>8<br>Greenhouse gas emissions (million<br>metric tons CO<br>2<br>e)<br>Scope 1 Scope 2 | |
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| 42<br>Making Significant Progress<br>on Near-Term Targets<br>2021 Huntsman Investor Day<br>TRIR | TOTAL RECORDABLE INCIDENT RATE<br>75% Collective Progress<br>to our 2025 Horizon Targets<br>GHG Scope 1 & 2<br>Energy Consumption<br>Product Safety<br>Summaries<br>Hazardous Waste Disposal<br>Total Waste Disposal<br>Water Usage in<br>Stressed Areas<br>0.00<br>0.10<br>0.20<br>0.30<br>0.40<br>0.50<br>0.60<br>0.70<br>0.80<br>0.90<br>2016 2017 2018 2019 2020<br>US Chemical Industry Average Huntsman<br>Note: 2019 upward movement due to new acquisitions<br>Sustainability |
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| 43<br>Long-Term Objectives for<br>Greater Sustainability<br>Sustainability<br>(1) IEA = International Energy Agency<br>(2) IPCC RCP = United Nations Intergovernmental Panel on Climate Change Representative Concentration Pathway which is a model of<br>greenhouse gas emissions, change in greenhouse gas atmospheric concentration, mean temperatures, and sea level<br>Carbon Neutral by 2050<br>IEA: Net Zero by 2050 Scenario<br>IPCC: RCP 1.5 (special report)<br>Stated Policies<br>IEA: Stated Policies Scenario<br>IPCC: RCP 3.4<br>2°C or Lower Policies<br>IEA: Sustainable Development Scenario<br>IPCC: RCP 2.6<br>Long-term sustainability goals —<br> “Carbon, circularity, chemistry and materials”<br>Full<br>Circularity<br>Carbon<br>Neutrality<br>Sustainable<br>Chemistry<br>TCFD Scenarios<br>43 2021 Huntsman Investor Day | |
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| 44<br>Our Solutions Enable Alternative Energy<br>2021 Huntsman Investor Day<br>Our specialty amines make the blades of a wind turbine longer, so they are more<br>economic<br>One ton of our Performance Products Polyetheramines go into solutions which…<br>(1) If compared to coal-fired power, estimated emissions avoided and the return on invested carbon would double<br>Source: Management estimates assured by a third-party review<br>avoids<br>30,000tns<br>CO2e<br>requires an additional<br>625tns<br>CO2e to build<br>delivers a<br>48x<br>return on invested<br>carbon(1)<br>44<br>Sustainability | |
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| 45<br>Our Solutions Improve Energy Efficiency<br>2021 Huntsman Investor Day<br>(1) Does not include the benefit from the reduction in materials for maintenance due to panel and rivet replacement<br>Source: Management estimates assured by a third-party review<br>Our resins and hardeners reduce the weight of an airplane by 20% and allow for<br>blended winglets, further improving fuel efficiency<br>One ton of our Advanced Materials resins and hardeners go into solutions which…<br>avoids<br>14,000tns<br>CO2e<br>requires an additional<br>350tns<br>CO2e to build<br>delivers a<br>40x<br>return on invested<br>carbon(1)<br>45<br>Sustainability | |
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| 46<br>Our Solutions Enable Electrification<br>of Transport Sector<br>2021 Huntsman Investor Day (1) Does not include recycling of batteries which would increase the carbon savings and return on invested carbon<br>Source: Management estimates assured by a third-party review<br>Our carbonates improve the efficiency of lithium-ion batteries<br>One ton of our Performance Products carbonates go into solutions which…<br>avoids<br>1,300tns<br>CO2e<br>requires an additional<br>160tns<br>CO2e to build<br>delivers a<br>8x<br>return on invested<br>carbon(1)<br>46<br>Sustainability | |
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| 47<br>Our Solutions Improve Efficiency<br>of Homes and Buildings<br>2021 Huntsman Investor Day<br>(1) Most comparisons use 75 years for house life – we used 50 years<br>(2) Does not consider carbon savings from improving house resiliency and lower materials for maintenance; flood approval by FEMA<br>Source: Management estimates assured by a third-party review<br>Our spray polyurethane foam insulation reduces air intrusion into homes and<br>buildings, decreasing the amount of energy required for heating and cooling<br>One ton of our Polyurethanes spray polyurethane foam goes into solutions which…<br>avoids<br>10tns<br>CO2e<br>requires an additional<br>1.2tns<br>CO2e to build<br>delivers a<br>8x<br>return on invested<br>carbon(1)(2)<br>47<br>Sustainability | |
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| 48<br>Polyurethanes<br>2021 Huntsman Investor Day<br>Tony Hankins<br>CEO Asia Pacific | Division President |
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| 49<br>Strong Business with Profitable Growth Upside<br>Polyurethanes<br>$4.7B 3Q21 LTM sales revenue<br>$862M 3Q21 LTM Adj. EBITDA<br>~2,500 products<br>35 manufacturing sites<br>~3,300 associates<br>~5,000 customers<br>14+ chemical process<br>technologies<br>20% of sales of products<br>introduced in the last 5 years<br>End Market Breakdown(1) Key Businesses (Net Sales Revenue)(1)<br>Regional Mix(1)<br>(1) Represents 3Q21 LTM Net Sales Revenue 2021 Huntsman Investor Day<br>36%<br>26% 30%<br>8% U.S. & Canada<br>Europe<br>Asia Pacific<br>Rest of World<br>34%<br>13%<br>13% 13%<br>10%<br>10%<br>5%<br>2% Insulation<br>Adhesives & Coatings<br>Spray Foam<br>Automotive<br>Elastomers<br>Composite Wood Products<br>Furniture<br>Appliances<br>49<br>$0<br>$500<br>$1,000<br>$1,500<br>$2,000<br>$2,500<br>$3,000<br>$3,500<br>$4,000<br>$4,500<br>$5,000<br>2017 2018 2019 2020 3Q21 LTM<br>Commodity Formulated Systems Global Platforms & Specialty Solutions<br>USD in Millions<br>Differentiated<br>Commodity | |
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| 50<br>Upvaluing Portfolio to<br>Increase Profitability<br>Polyurethanes<br>What are we doing differently?<br>Upvaluing<br>Customer<br>Solutions<br>.. Leverage splitter<br>technology for increased<br>product differentiation<br>.. Upvalue earnings on<br>long-term contracts<br>.. Deselect non-strategic<br>markets<br>Boosting<br>Differentiated<br>Platforms<br>.. Grow/globalize Huntsman<br>Building Solutions<br>.. Strengthen global<br>Automotive<br>.. Scale global Elastomers<br>Fit and Focused<br>.. Drive active portfolio<br>management and<br>resource alignment<br>.. Execute synergies and<br>cost optimization<br>programs<br>.. Accelerate ‘cost out’<br>programs for variable and<br>fixed costs<br>.. Shifting low margin volumes to higher<br>EBITDA businesses<br>.. Delivering LEAN, Low Capex Productivity<br>enhancements<br>.. Driving rigorous focus on variable and<br>fixed costs<br>2021 Huntsman Investor Day 50 | |
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| 51<br>Polyurethanes<br>2021 Huntsman Investor Day<br>HBS<br>Splitting Technology drives<br>upvaluing potential<br>Commodity<br>pMDI<br>Commodity Pure MDI<br>Formula pMDI<br>pMDI Based Insulation<br>Systems<br>Adhesives &<br>Coatings<br>Furniture<br>Huntsman Building<br>Solutions<br>Automotive<br>Elastomers<br>Series 1<br>Stabilize<br>Upvalue<br>Upvalue<br>Upvalue<br>Upvalue<br>Upvalue<br>Upvalue<br>h<br>Volatility<br>Upvaluing the Business with Innovation<br>and Differentiation<br>Global Platforms &<br>Specialty Solutions<br>Innovate ● Grow<br>Adj. EBITDA Margin ~ 20%(1)<br>.. Huntsman Building Solutions (HBS)<br>.. Elastomers (Specialty Elastomers, Footwear)<br>.. Automotive<br>.. Adhesives & Coatings<br>.. Furniture/ Bedding<br>Formulated Systems<br>Innovate ● Upvalue<br>Adj. EBITDA Margin ~ 16%(1)<br>.. Insulated Metal Panels<br>.. Insulation Boards<br>Commodity<br>Deselect ● Upvalue<br>Adj. EBITDA Margin 10% - 30%(1)<br>.. Composite Wood Panels (CWP)<br>.. Systems Houses<br>(1)Represents average last 5-year margin (2016 – 2021)<br>Excludes Champion Equity Income (+1.2% EBITDA) & MDI JV Accounting & Aniline/Benzene sales (-3.3% EBITDA)<br>(2) Right hand portfolio map represents LTM revenue and excludes MDI JV Accounting & Aniline/Benzene sales<br>High<br>Low | |
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| 52<br>Splitter is a Catalyst for Differentiated<br>Growth Transformation in the Americas<br>(1) Volatile organic compound<br>Polyurethanes<br>Reconfiguring Geismar MDI Facility<br>Pre-Splitter Post-Splitter<br>+40%<br>Di-iso<br>Volume<br>- 30%<br>+50%<br>Upgrading the Product<br>Portfolio, including an<br>increase in VOC(1)<br>free products<br>2021 Huntsman Investor Day 52<br>Di-iso<br>Polymeric<br>Geismar MDI Splitter scheduled to start<br>operating in Q2 2022<br>Leveraged technology and experience deployed in Europe<br>and Asia | |
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| 53<br>Significant Upside Potential in the Americas<br>Polyurethanes<br>Strategic Focus<br>+50%<br>Volume<br>Uplift<br>+150%<br>Post-Splitter<br>Value<br>Uplift(1)<br>Transformation Drivers<br>Growing and innovating in high value<br>downstream segments and differentiated<br>platforms<br>Upvaluing long-term supply contracts for<br>component business<br>Maximizing captive use of component<br>polymeric in Huntsman Building Solutions<br>Innovate & Grow<br>Innovate & Upvalue<br>Upvalue formula contracts<br>Maximize use in HBS<br>Deselect<br>+40% +22%<br>2021 Huntsman Investor Day (1) Based on cents per lb uplift<br>-30%<br>+$30M<br>Adj. EBITDA in 2023<br>+$45M<br>Adj. EBITDA in 2024<br>Upvalue<br>53<br>Di-iso<br>Polymeric | |
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| 54<br>$0.5B<br>$0.6B<br>$1.3B<br>0% 20% 40% 60% 80% 100%<br>Asia<br>Europe<br>N. America<br>MW EPS / XPS Fibreglass PU Panel Cellulose SPF<br>Total $8.2B<br>Total $9.5B<br>Total $13.1B<br>Growing Huntsman Building Solutions Globally<br>Polyurethanes<br>2021 Huntsman Investor Day<br>Post-Acquisition Multiple with Synergies — 2021 7x ~$31B Global Building Insulation Market 2020<br>Progress since May 2020<br>.. Delivered $25M synergies<br>.. Grown international Adj. EBITDA from $0 to $18M<br>.. Sourcing 100% polymeric MDI from Huntsman<br>.. Using Huntsman’s upcycled content TEROL® Polyols<br>Spray Foam accounts for 8% of Global Insulation Market<br>.. Grow the SPF market by<br> ⎻<br>Building a global brand<br> ⎻<br>Influencing adoption of SPF as the insulation of choice<br> ⎻<br>Leveraging our global downstream footprint to internationalize<br>~$40M<br>~$100M<br>~$160M<br>~$200M<br>2019 2021E 2023 2025<br>Acquired Feb 2018, $350M Acquired Feb 2020, $350M Created May 2020<br>Source: Freedonia 2018 report and management estimates<br>~7%<br>~31%<br>HBS Share of SPF<br>~3%<br>Adj. EBITDA(1)<br>(1) Management estimates, integrated margins | |
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| 55<br>Strengthening Global Automotive Platform<br>2021 Huntsman Investor Day<br>Polyurethanes<br>35-Year Track Record of Industry-<br>Leading Technical Expertise<br>Around the World<br>Drivers for EBITDA Growth<br>~$80M<br>~$120M<br>~$165M<br>2021E 2023 2025<br>Chips<br>shortage<br>impact<br>Adj. EBITDA<br>20% CAGR<br>(1) Source:Roland Berger<br>Electrification Focus(1) Comfort<br>.. Ultra thin seating for extra battery<br>space<br>.. Acoustics for electric drivetrain and<br>interior<br>Light weighting<br>.. Composites for battery packaging<br>and interior trims<br>.. Adhesives for long lasting interior<br>components<br>0<br>5<br>10<br>15<br>20<br>25<br>ICE Electrified<br>PU content kg / vehicle<br>+30%<br>Sustainability Focus<br>.. Low emission (LE) interior<br>foams<br>.. TEROL® polyols containing<br>up to 60% upcycled content<br>for instrument panels and<br>steering wheels<br> >10%<br>PHASE I<br> >10 % bio-based<br>content in foam<br> >40%<br>PHASE II<br> >40% bio-based<br>and upcycled<br>55<br>Adj. EBITDA(1)<br>(1) Management estimates | |
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| 56<br>~$57M<br>~$85M ~$110M<br>~$160M<br>2016 2021E 2023 2025<br>Scaling Global Elastomers<br>2021 Huntsman Investor Day<br>Polyurethanes<br>Adj. EBITDA<br> >10% CAGR<br>.. Technology synergies<br>across business<br>.. Seamless connections to<br>global customers<br>Strong Growth Momentum Proven & Effective Strategy<br>High profitability in emerging spaces 50%<br>Increase in vitality index(2) through 2025<br>Growth through Innovation<br>Strong Innovation Portfolio ● Megatrend Focus ●<br>Sustainability Driven ● Technology Expertise<br>Drivers for EBITDA growth<br>Sustainability Focus<br>Example: Footwear<br>Direct Bonding Huntsman Midsole Technology<br>.. Eliminates adhesives and VOC emissions<br>.. Enables manufacturing automation and reshoring<br>to reduce carbon footprint<br>Best-in-Class Technology<br>Example: EV Charging Cable<br>Halogen-Free Flame Retardant Sheathing<br>.. State-of-the-art property performance - fire<br>resistance, low temperature flexibility<br>.. Fully approved to industry standards<br>Global Platform Established 2016<br>56<br>Adj. EBITDA(1)<br>(1) Management estimates<br>(2) Sales from products less than 5 years in the market | |
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| 57<br>Upgrading Portfolio Profitability and<br>Cash Generation<br>Polyurethanes<br>Integrate HBS<br>$25M synergies delivered<br>.. G&A consolidation $9M<br>.. Sales force consolidation $6M<br>.. Improved raw materials<br>purchasing $5M<br>.. Consolidated manufacturing<br>sites $3M<br>.. Product rationalization $1M<br>.. Logistics optimization /<br>consolidation $1M<br>Upvalue Downstream<br>Footprint<br>+$40M will be delivered by<br>mid 2022<br>.. Mid 2021 run rate ~$26M<br>.. Right-sized downstream<br>footprint<br>.. Closed 2 sites end Q2 2021<br>and sold 1 site<br>.. Operational improvements<br>.. Purchasing<br> ⎻<br>Centralizing spend to simplify<br>processes and unlock savings<br>.. Back-Office<br> ⎻<br>Implementing SAP Business<br>One at 10 non-SAP entities to<br>enable cost optimization<br>Accelerate Margin<br>Uplift<br>+$60M will be delivered by<br>end of 2023<br>.. Exit underperforming market<br>segments and geographies<br>.. Realign organizational footprint<br>.. Execute variable cost<br>improvement initiatives<br>.. Unlock downstream capacity<br>via LEAN best practice<br>Drive active portfolio management<br>and align resources<br>Rigorous focus on managing fixed<br>and variable costs<br>~$125 million<br>Portfolio & Cost Optimization by end of 2023<br>2021 Huntsman Investor Day 2021 Huntsman Investor Day 57 | |
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| 58<br>1.4 1.5 1.6<br>3.0 3.2 3.2<br>5.0 5.4 6.2<br>2020 2022 2025<br>Americas Europe Asia<br>MDI Industry Capacity Development<br>Polyurethanes<br>Crude MDI Capacity(1) New Announced Investments 2022 – 2025(2)<br>(‘000s Ktes)<br>Region Country Company Plant Ktes<br>Asia China Wanhua Ningbo +600<br>Asia China Wanhua Fujian-Connell +400<br>Asia Korea K. Mitsui Yeosu +210<br>America US BASF Geismar +100<br>Huntsman China Polymeric MDI = $420M Q3 LTM<br>.. Every 1000RMB (ICIs) move ~ $14M EBITDA<br>.. Huntsman/Sinopec PO/MTBE Joint Venture<br> – 3Q21 LTM equity earnings of $120M<br> – 3-year average equity of earnings of $65M<br>Capacity expansion at 3% which is below global<br>MDI demand outlook of 5% – 6%<br>Asia will account for >60% of global crude MDI<br>capacity by 2025<br>China Sensitivity<br>Huntsman China Polymeric MDI ~$400M Q3 LTM<br>.. Every 1,000RMB (ICIS) move ~$15M EBITDA/year<br>.. Huntsman/Sinopec PO Joint Venture<br> – 3Q21 LTM equity earnings of ~$120M<br> – 2018/19 average equity earnings of ~$50M<br>Announced industry capacity expansion through<br>2025 of 3% which is below global MDI demand<br>outlook of 5% - 6%<br>Asia will account for >60% of global crude MDI<br>capacity by 2025<br>China Sensitivity<br>58 2021 Huntsman Investor Day (1) Management estimates<br>(2) Data from IHS and ICIS | |
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| 59<br>Strong Business with<br>Profitable Growth Upside<br>Polyurethanes<br>2021 Huntsman Investor Day<br>Upvaluing Customer Solutions<br>.. Leverage splitter technology for increased product differentiation<br>.. Shifting low margin volumes to higher EBITDA businesses<br>.. Upvalue earnings on long-term contracts<br>Boosting Differentiated Platforms<br>.. Grow/globalize Huntsman Building Solutions<br>.. Strengthen global Automotive<br>.. Scale global Elastomers<br>Fit and Focused<br>.. Drive active portfolio management and resource alignment<br>.. Deselect non-strategic markets<br>.. Execute synergies and cost optimization programs<br>.. Delivering LEAN, low Capex productivity enhancements<br>.. Driving rigorous focus on variable and fixed costs<br>59<br>Adj. EBITDA (2022)<br>$875M – $950M<br>Adj. EBITDA Margin Target<br>18% – 20% | |
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| 60<br>Textile<br>Effects<br>Rohit Aggarwal<br>Division President<br>2021 Huntsman Investor Day | |
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| 61<br>14%<br>43%<br>13%<br>12%<br>8%<br>8%<br>2%<br>Performance Apparel<br>Casual<br>Formal<br>Home and Hospitality<br>Transportation<br>Specialized Textiles<br>Others<br>Leading Solutions Provider<br>Textile Effects<br>2021 Huntsman Investor Day<br>$0.8B 3Q21 LTM sales revenue<br>$93M 3Q21 LTM Adj. EBITDA<br>~1200 products<br>10 manufacturing sites<br>~2000 associates<br>2200+ customers<br>150+ new products launched in<br>last 5 years<br>2/3+ of portfolio are sustainable<br>products<br>End Market Breakdown(1)<br>Regional Mix(1)<br>(1) Represents 3Q21 LTM Net Sales Revenue<br>Apparel<br>70%<br>2021 Huntsman Investor Day 61<br>Commodities<br>Differentiated/Specialty<br>Local/Regional Global<br>Chemicals<br>Only<br>Dyes<br>Only<br>Dyes &<br>Chemicals<br>Chemical formulators<br>Niche expertise<br>Dye commodity players<br>Limited marketing capabilities<br>Flariant<br>Jihua<br>Colortex<br>Jay<br>Lonsen<br>Runtu Coloroot<br>NICCA<br>Rudolf<br>Pulcra<br>Dymatic<br>CHT<br>Transfar<br>Archroma<br>Dystar<br>Huntsman<br>Textile<br>Effects<br>Competitive Landscape<br>7% 16%<br>62%<br>15% U.S. & Canada<br>Europe<br>Asia Pacific<br>Rest of World | |
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| 62<br>Our Products Drive Consumer Buying<br>Decisions Everyday<br>Textile Effects<br>2021 Huntsman Investor Day<br>Fiber<br>30%<br>Huntsman<br>30%<br>Wet Processing<br>30%<br>Color<br>AVITERA® SE<br>UVITEX®<br>TERASIL® WW<br>50% water and GHG reduction<br>Long lasting colors<br>Long lasting white<br>Patented wash fast<br>dyes for durable<br>color, wash after<br>wash<br>ULTRAPHIL®<br>Moisture management to keep<br>dry and cool<br>Feel Function<br>Processing<br>Cost Structure<br>~10% of Retail Price<br>ZELANTM &<br>PHOBOTEX®<br>Leader in non-fluorocarbon<br>solutions<br>Stain repel and release<br>ULTRATEX®<br>Wide range of<br>softener customized<br>at our formulation<br>centers<br>DICRYLAN® LF<br>Low friction<br>AGION ® & LAVA®<br>Anti-bacterial<br>Anti-odor<br>KNITTEX®<br>Easy care solution | |
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| 63<br>Innovation Fueled by Consumers’ Demand<br>for Sustainability and Performance<br>2021 Huntsman Investor Day<br>Textile Effects<br>PHOBOTEX®<br>Cleaner C0 chemistry for<br>stain repel and release<br>without compromising the<br>performance<br>Blockbuster Innovation Pipeline<br>AVITERA®<br>ALBAFIX®<br>ULTRATEX®<br>Quantum leap in<br>sustainability for deep<br>shades ~50% water<br>and GHG reduction<br>Enhancing durability<br>for casual wear<br>Unique innovation<br>enhancing comfort. True<br>combination of softness<br>and absorbency<br>Casual<br>Performance<br>Home & Hospitality<br>TERASIL®<br>Next generation dyes for performance<br>apparel – high performance at<br>substantially lower cost<br>2.2%<br>Market Growth<br>(CAGR 2021-2025)<br>Huntsman Revenue Growth vs Market in<br>Specialty and Differentiated Portfolio<br>3x<br>4.5%<br>Market Growth<br>(CAGR 2021-2025)<br>3.5%<br>Market Growth<br>(CAGR 2021-2025)<br>2021 Huntsman Investor Day 63 | |
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| 64<br>Growth Driven by Sustainability Solutions<br>Textile Effects<br>During Consumer Experience<br>Lower water & energy consumption<br>during home laundry, and non-iron, easy<br>care, lasting color and stain management<br>During Textile Manufacturing<br>Unique patented technologies for up<br>to 50% water and energy savings<br>ERIOPON®<br>TERATOP®<br>ERIOFAST®<br>Volume<br>3Q21 LTM<br>3% CAGR<br>2025 Est 2016<br>42% of<br>Total Volume<br>45% of<br>Total Volume<br>10% CAGR<br>2021 Huntsman Investor Day 64<br>36% of<br>Total Volume | |
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| 65<br>Transformed Business to Deliver Consistent<br>Long-Term Performance<br>Textile Effects<br>2021 Huntsman Investor Day (1) Exclude Tolling, License Fee and others<br>Volume by Portfolio(1) — CAGR 2011 – 2021 Sales and EBITDA Margin<br>by Portfolio Adj. EBITDA<br>73<br>93<br>150<br>10%<br>12%<br>13%<br>16%<br>2016 3Q21 LTM 2022 Est 2025 Est<br>Adj. EBITDA $ Adj. EBITDA %<br>105-<br>115<br>7%<br>2%<br>-2%<br>34%<br>26% 25% 21%<br>60%<br>67% 65% 66%<br>6% 8% 10% 13%<br>2011 2016 3Q21 LTM 2025<br>7%<br>Specialty<br>2%<br>Differentiated<br>-2%<br>Value<br>2025 Est<br>22% 20% 15%<br>78% 80% 85%<br>2016 3Q21 LTM 2025<br>Value Specialty & Differentiated<br>2025 Est<br>Adj. EBITDA %<br>11% 13% 17%<br>2% 3% 3% | |
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| 66<br>Strengthen Leadership in Bangladesh<br>with First Mover Advantage<br>Textile Effects<br>2021 Huntsman Investor Day<br>1. Textile Effects is a market leader<br>2. Bangladesh is the 3rd largest textile<br>producer growing at CAGR +5%<br>3. Importance of Bangladesh continues as<br>retailers balance supply chain risk<br>4. No domestic dyes and chemicals<br>production<br>Formulation Center & Lab by Q4 2022 Sales CAGR (2011 – 2025) $M<br>Elevate leadership position<br>Agile and cost-effective model<br>First mover advantage<br>Casual Wear<br>CAGR 21 – 25<br>+5.2%*<br>Home & Hospitality<br>CAGR 21 – 25<br>+4.5%*<br>2021 Huntsman Investor Day 66<br>2011 3Q21 LTM 2025 Est<br>14%<br>7%<br>~50<br>~100<br>~150<br>* Management estimates | |
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| 67<br>Key takeaways<br>Textile Effects<br>2021 Huntsman Investor Day<br>Customer-driven, innovation led<br>.. Experienced technical support providing end to end solutions<br>.. Local sales and technical team with global technical specialists<br>Cash generating and asset light<br>.. Agile, strong working capital discipline<br>.. Asset efficient, process technology driven<br>Leadership in sustainability solutions<br>.. 4 global R&T centers, 13 technical labs<br>.. More than 2/3 of portfolio are sustainable range products<br>Adj. EBITDA (2022)<br>$100M – $110M<br>Adj. EBITDA Margin Target<br>13% – 15%<br>2021 Huntsman Investor Day 67 | |
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| 68<br>Financial<br>Overview<br>Phil Lister<br>Executive Vice President &<br>Chief Financial Officer<br>2021 Huntsman Investor Day | |
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| 69<br>$871 $846 $807 $616 $589 $647 $771 $1,051 $1,234 ~$1,400<br>13% 12% 12%<br>10% 10%<br>11%<br>12%<br>15%<br>16%<br>~17%<br>5%<br>7%<br>9%<br>11%<br>13%<br>15%<br>17%<br>19%<br> -<br> 200<br> 400<br> 600<br> 800<br> 1,000<br> 1,200<br> 1,400<br>3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 2022<br>Adj. EBITDA Adj. EBITDA Margin<br>Announced Sale of CI&S(1)<br>An Improved Business Portfolio with<br>Strong Momentum<br>Financial Overview<br>2021 Huntsman Investor Day<br>Margin Recovery in 2021 – Rolling LTM<br>2021 Huntsman Investor Day 69<br>2024 Target Margin<br>Polyurethanes 18% – 20%<br>Performance<br>Products 20% – 25%<br>Advanced<br>Materials 20% – 25%<br>Textile Effects 13% – 15%<br>18% – 20%<br>2H19 China Trade Wars +<br>Start of COVID-19<br>Pandemic<br>Divested CI&S(1)<br>Acquired IL(2)<br>COVID-19 Pandemic<br>expands globally<br>Acquired CVC(3)<br>HBS Integration commenced<br>Cost savings announced<br>Begins to recover led by<br>construction markets<br>Divested India DIY<br>Sold Venator Shares to SK<br>Capital<br>Acquired Gabriel(4)<br>COVID-19 vaccines begin<br>global rollout<br>Announced additional $100M<br>optimization program<br>Note: All periods proforma for the divestment of CI&S<br>(1) CI&S - Chemical Intermediates & Surfactants<br>(2) IL - Icynene-LaPolla<br>(3) CVC - CVC Thermoset Specialties<br>(4) Gabriel - Gabriel Performance Products<br>~100bps of Margin<br>Improvement Annually<br>USD in millions | |
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| 70<br>Return to 40%+ FCF Conversion<br>Financial Overview<br>2021 Huntsman Investor Day<br>2022 FCF Considerations<br>Reduced<br>Movement in<br>Working<br>Capital<br>($300M-$350M) impact in 2021<br>Expect small growth impact<br>2022 vs 2021<br>Reduced Capex<br>in 2022<br>~$300M annual spend<br>vs ~$350M in 2021<br>Reduced Cash<br>Interest ~$10M reduction<br>Expected<br>Increase in<br>Cash Taxes<br>~$75M increase<br>Reduced<br>Maintenance<br>Spend<br>$30M-$40M reduction<br>40%+ FCF Conversion<br>Target<br>2021 Huntsman Investor Day 70<br>42% 39%<br>45% 44%<br>20%<br>40%+<br>2017 2018 2019 2020 2021<br>Estimate<br>2022 (1)(2)<br>Note: Free Cash Flow defined as net cash provided by operating activities less capital expenditures.<br>(1) Excludes taxes paid on sale of businesses of $257M in 2020 and $3M in 2021<br>(2) Management Estimates<br>(1) (2)<br>Free Cash Flow / Adj. EBITDA | |
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| 71<br>Synergy & Cost Optimization On-Track with<br>More Coming<br>2021 Huntsman Investor Day<br>Financial Overview<br>71<br>In-Progress &<br>Completed<br>Initiatives<br>Site Optimization<br>.. M&A site consolidation<br> ⎻<br>Icynene: Houston, USA & Canada<br>Polyurethanes Network<br>.. Close production<br> ⎻<br>Ternate, Italy & Peel, Canada<br>.. Right-sized<br> ⎻<br>Deer Park, Australia & Gandaria,<br>Indonesia<br>Back Office<br>.. Formed GBS center in Asia (Malaysia)<br>.. Streamline activities, improved<br>efficiencies<br>Division Cost<br>.. Advanced Materials, Performance<br>Products, Textile Effects reduction<br>Strategic Purchasing<br>.. Proactive vendor management<br>Benefits Expected<br>Completion<br>Existing Initiatives<br>M&A Synergies ~$55M Q1 2023<br>Optimization Initiatives ~$85M(1) Q1 2023<br>Additional Initiatives<br>Polyurethanes Optimization ~$60M End of 2023<br>GBS Expansion ~$25M End of 2023<br>Supply ChainOptimization(2) ~$15M End of 2023<br>~$240M<br>(1) Includes $60M in SG&A<br>(2) Excludes $40M working capital benefit<br>GBS = Global Business Services<br>PU Margin Improvement<br>.. Further network<br>optimization<br>.. Gross profit<br>improvement<br>.. Commercial excellence<br>~$27M<br>~$90M<br>~$140M<br>~$200M<br>~$240M<br>2020 2021 2022 2023 2024<br>Existing Additional<br>USD in millions<br>Expand GBS<br>Supply Chain<br>Optimization<br>Additional<br>Initiatives<br>$100M ~$140M | |
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| 72<br>30% 18% 17% 16% 15% 15% 12% 12% 11% 8% 8% 3%<br>20%<br>14% 14%<br>13%<br>16% 16% 15%<br>20%<br>16%<br>32%<br>22% 22%<br>0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>30%<br>35%<br>40%<br>Henkel HB Fuller Lanxess Avient Evonik Carlisle BASF Covestro Huntsman Celanese Eastman Dow<br>SG&A as a % of Sales EBITDA Margin<br>Huntsman LTM SG&A % of Sales<br>Continuous Cost Management Focus<br>Financial Overview<br>2021 Huntsman Investor Day<br>SG&A and Adj. EBITDA as a Percent of Sales<br>SG&A cost control is a key element in our<br>drive to improve Adj. EBITDA margins to<br>18% - 20%<br>Expect to end full year 2021<br>SG&A at ~10% of Sales<br>with further improvement expected<br>beyond 2021<br>Incremental ~$50M SG&A savings<br>targeted beyond 2021(1)<br>Note: US & Europe publicly traded companies<br>All figures reflect Company filings and FactSet as of November 3, 2021<br>Henkel calculated as marketing, selling and distribution expense divided by revenue. Further breakdown to include only SG&A not available through public disclosure<br>(1) Incremental SG&A savings of ~$50M are included in the announced optimization program<br>72<br>Target<br>18% - 20% | |
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| 73<br>Since 2018: Strengthened Our Balance Sheet and<br>Accelerated Return of Capital to Shareholders<br>2021 Huntsman Investor Day<br>Financial Overview<br>$2.2B<br>$1.0B<br>2018-2021<br>Total Cash Inflows<br>Divestitures Adj. FCF<br>$1.4B<br>$0.8B<br>$0.6B<br>$0.7B<br>2018-2021<br>Total Cash Outflows<br>Acquisitions Net Debt Reduction<br>Dividends Buybacks<br>$0<br>$1,000<br>$2,000<br>$3,000<br>$4,000<br>$5,000<br>$6,000<br>$7,000<br>2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021<br>YTD<br>Cumulative Dividends Cumulative Buybacks Cumulative Net Debt Reduction<br>Since 2006 Huntsman spent<br>From 2006 to 2017 We Significantly Reduced Debt<br>$3.6B(2)<br>on Debt Reduction (net)<br>$1.7B<br>on Dividends<br>$0.8B<br>on Buybacks<br>2018 to Today, $3.2B of Cash<br>generated from Divestitures &<br>Adj. Free Cash Flow(1)<br>Since 2018, Cash was used to support<br>Bolt-on Acquisitions, Buybacks,<br>Dividends & Net Debt Reduction<br>(1) Adj. Free Cash Flow excludes the taxes paid in connection with the sale of our Chemical Intermediates Businesses and the sale of our India-based DIY business.<br>(2) Does not reflect costs associated with early the extinguishment or issuance of debt<br>USD in Millions | |
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| 74<br>Our Acquisition Criteria<br>Financial Overview<br>2021 Huntsman Investor Day 2021 Huntsman Investor Day 2021 Huntsman Investor Day 74<br>What Acquisitions Must Have…<br>Cost Synergies Technology Synergies Scalability and<br>Commercial<br>Expansion<br>Divisional Acquisitions Focus Is…<br>Performance Products<br>Priority is for strategic organic investment, will look for M&A<br>to leverage Maleic Anhydride and Amines integration and<br>technology<br>Polyurethanes<br>Build out Huntsman Building Solutions and leverage<br>downstream MDI capabilities<br> …and a Financial Profile Delivering… Advanced Materials<br>Build out specialty component and formulation capabilities<br>focused on composites, adhesives and coatings<br>High Adj. EBITDA<br>Margin<br>High FCF with Low<br>Capital Intensity<br>Risk adj. IRR<br>greater than WACC +<br>Clear Premium<br> …A Disciplined Approach, Preserving Investment Grade Balance Sheet | |
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| 75<br>Reshaping the Portfolio through Acquisitions &<br>Divestitures<br>2021 Huntsman Investor Day<br>Financial Overview<br>Acquisitions of High Margin and Differentiated Businesses ~$1.4B in Bolt-on<br>Acquisitions since 2018<br>By 2023, we will have<br>delivered:<br>.. Adj. EBITDA including<br>synergies of >$200M<br>.. >20% Adj. EBITDA Margin<br>Implies <7.0x EBITDA<br>Multiple<br>~$3.7B<br>Net Proceeds<br>Divestiture of Chemical<br>Intermediates<br>January 2020<br>Net Proceeds<br>~$1.7B<br>IPO of Venator Materials<br>August 2017 – December<br>2020<br>Net Proceeds<br>~$1.7B<br>Sale of Basel Land<br>September 2019<br>Proceeds ~$50M<br>Sale and Leaseback of<br>Basel Facility<br>November 2020<br>Proceeds ~$73M<br>Sale of India DIY<br>Consumer Adhesives<br>December 2020<br>Net Proceeds<br>~$256M<br>April 2018<br>Purchase Price ~$350M<br>Delivers higher stable<br>margins pulling through<br>large amounts of upstream<br>polymeric MDI<br>February 2020<br>Purchase Price ~$350M<br>Provides Huntsman with the<br>largest global array of spray<br>foam technology<br>January 2021<br>Purchase Price ~$250M<br>Enhances our<br>competitiveness and our<br>world class formulations<br>May 2020<br>Purchase Price ~$300M<br>Brings valuable<br>complementary technology<br>breadth to our Advanced<br>Materials portfolio<br>September 2019<br>Purchase Price ~$100M<br>Maleic JV - Fully integrate<br>our European business into<br>our worldwide footprint<br>2021 Huntsman Investor Day 2021 Huntsman Investor Day 75 Continuously Evaluating Portfolio for Improved Shareholder Return<br>Divestitures of Non-Core and Commodity-based Assets | |
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| 76<br>19% 18%<br>16% 15% 15% ~15%<br>2017 2018 2019 2020 2021 Estimate Target<br>Disciplined Management of Operating and Fixed Capital<br>Financial Overview<br>2021 Huntsman Investor Day<br>Working Capital Management and Fixed Capital Allocation Underpinning Strong FCF Generation Target of 40%+ Conversion<br>Growth: High<br>Return &<br>Differentiated<br>Growth Projects<br> >20% Risk<br>Adjusted IRR<br>(Geismar MDI<br>Splitter / Batteries<br>/ PU Catalysts /<br>Electronics)<br>Effective Deployment of Capital Expenditures Working Capital Management for Strong Free Cash Flow<br>Targeted Primary Working Capital % of Sales ~15%<br>Supply chain optimization program targeting incremental<br>$40M reduction in primary working capital (~0.5% of sales)<br>~20%<br>~20% ~60%<br>Targeted<br>Annual<br>Capex<br>Spend<br>$300M<br>Mandatory: Safety and<br>Environment (License to Operate)<br>Reliability: Maintenance<br>Renewals (Company wide risk<br>assessment)<br>Reduction from $350M in 2021 (1) Primary working capital defined as Accounts Receivable plus Inventory less Accounts Payable | |
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| 77<br>Capital Allocation Priorities<br>Financial Overview<br>2021 Huntsman Investor Day<br>Free Cash Flow<br>2021 Huntsman Investor Day 77<br>Less Dividends<br>Maintain Investment Grade Balance Sheet<br>~$300M Annual<br>Capex<br>Differentiated Growth, High return projects<br>Bolt-ons<br>Acquisitions in Polyurethanes, Advanced<br>Materials and Performance Products<br>Dividends<br>Attractive payout (raised 15% in 2021)<br>~$160M+ Annually<br>Allocates a minimum capital equivalent of<br>dividend payout to share repurchases<br>Equals Cash Available for<br>Share Buybacks and<br>Bolt-ons<br>Expect to complete new $1 billion<br>share repurchase program<br>within 3 years | |
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| 78<br>Upvalue Portfolio & Continued<br>Margin Expansion<br>Balanced Capital Allocation &<br>Financial Discipline<br>Competitive Dividend &<br>Continuation of Our Share<br>Buyback Program<br>Strong Cash Generation<br>Focus on Shareholder Value<br>Creation<br>A Compelling Investment<br>Opportunity<br>Financial Overview<br>2021 Huntsman Investor Day<br>Key Financial Targets<br>Polyurethanes $875M – $950M(1)<br>Performance Products $360M – $380M<br>Advanced Materials $225M – $240M<br>Textile Effects $100M – $110M<br>Corporate ~($190M)<br>2022 Adj. EBITDA ~$1.4B<br>2022 Adj. EBITDA Margin ~17%<br>Free Cash Flow Conversion 40%+<br>2021 Huntsman Investor Day 78<br>Underlying macro-economic assumptions include 4.5% World GDP and 4% Global<br>Industrial Production for 2022 per Oxford Economics<br>(1) Includes Sinopec JV equity income contribution<br>of approximately $80 million<br>Beyond 2022, Margin Targets 18% - 20% | |
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| 79<br>Q&A<br>Investor Day 2021<br>79 2021 Huntsman Investor Day | |
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| 80<br>Thank you | |
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Exhibit 99.2
| FOR IMMEDIATE RELEASE | Media: | Investor Relations: |
|---|---|---|
| November 9, 2021 | Gary Chapman | Ivan Marcuse |
| The Woodlands, TX | (281) 719-4324 | (281) 719-4637 |
| NYSE: HUN |
Huntsman Highlights Growth Strategy and FinancialTargets at Investor Day
THE WOODLANDS, TX – Huntsman Corporation (NYSE: HUN) is hosting its Investor Day today at the New York Stock Exchange and will be providing an in-depth overview of the Company’s growth strategy and financial targets.
Peter R. Huntsman, Chairman, President and CEO, commented: “Since2016, Huntsman has significantly improved our operational and financial profile across our business lines. Together with governance andESG enhancements as well as a new $1 billion share repurchase authorization, Huntsman is well-positioned to achieve our next set of strategicobjectives, which include growing an even more differentiated portfolio, improving our EBITDA margin, generating free cash flow above40%, maintaining an investment grade balance sheet and returning capital to shareholders. We look forward to executing on this strategyand creating shareholder value.”
Highlights of the presentation emphasize the Company’s goals including:
Focus on improved Adjusted EBITDA Margins and Free Cash Flow Conversion:
| · | Guiding to 2022 Adjusted EBITDA of ~$1.4 billion and free cash flow conversion<br>above 40% |
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| · | Post-2022 financial targets of 18-20% Adjusted EBITDA margin |
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| · | Measurable and specific cost optimization plans and synergy savings |
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| · | Investment in high margin, high returns projects; and |
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| · | Strategic bolt-on M&A consistent with maintaining an investment grade<br>balance sheet |
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Strong Financial Performance Creates a Compelling Investment Opportunity:
| · | Poised to drive continued margin expansion |
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| · | Strong cash generation and focus on shareholder value creation |
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| · | Balanced approach to capital allocation and financial discipline |
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| · | Investment grade balance sheet |
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| · | Attractive dividend |
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| · | New share repurchases of $1 billion over 3 years |
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Huntsman’s investor presentation is available at www.huntsman.com/investor-day.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer andmarketer of differentiated and specialty chemicals with 2020 revenues of approximately $6 billion. Our chemical products number in thethousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operatemore than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associateswithin our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
This press release includes “forward-looking statements”within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-lookingstatements include statements concerning our plans, objectives, goals, strategies, future events, future revenue or performance, capitalexpenditures, financing needs, plans or intentions relating to acquisitions or strategic transactions, business trends and any other informationthat is not historical information. When used in this press release, the words “estimates,” “expects,” “anticipates,” “likely,” “projects,” “outlook,” “plans,” “intends,” “believes,” “forecasts,” or future or conditional verbs, such as “will, “should,” “could” or “may,”and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements,including, without limitation, management’s examination of historical operating trends and data, are based upon our current expectationsand various assumptions and beliefs. In particular, such forward-looking statements are subject to uncertainty and changes in circumstancesand involve risks and uncertainties that may affect the Company's operations, markets, products, prices and other factors as discussedin the Company’s filings with the SEC. Significant risks and uncertainties may relate to, but are not limited to, ongoing impactof COVID-19 on our operations and financial results, volatile global economic conditions, cyclical and volatile product markets, disruptionsin production at manufacturing facilities, timing of proposed transactions, reorganization or restructuring of the Company’s operations,including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimizationimprovements in the Company’s businesses and to realize anticipated cost savings, and other financial, operational, economic, competitive,environmental, political, legal, regulatory and technological factors. Any forward-looking statement should be considered in light ofthe risks set forth under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020,which may be supplemented by other risks and uncertainties disclosed in any subsequent reports filed or furnished by the Company fromtime to time. All forward-looking statements apply only as of the date made. Except as required by law, the Company undertakes no obligationto update or revise forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrenceof unanticipated events.
Non-GAAP Financial Measures
This press release contains financial measures that are not in accordance with generally accepted accounting principles in the U.S. ("GAAP"), including adjusted EBITDA, adjusted EBITDA from discontinued operations, adjusted net income (loss), adjusted diluted income (loss) per share, free cash flow, adjusted free cash flow, and net debt. For more information on the non-GAAP financial measures used by the Company and referenced in this press release, including definitions and reconciliations of non-GAAP measures to GAAP, please refer to “Non-GAAP Reconciliation” hyperlink available in the Financials” section of the Company’s website at www.huntsman.com/investors.
The Company does not provide reconciliations of forward-looking non-GAAP financial measures to the most comparable GAAP financial measures on a forward-looking basis because the Company is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of the Company's control and/or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information.
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