Earnings Summary Second Quarter 2018 Conference Call Tuesday, July - PowerPoint PPT Presentation

Earnings Summary Second Quarter 2018 Conference Call Tuesday, July 31, 2018 11:00 a.m. ET U.S. Participants: (888) 680 - 0878 International Participants: (617) 213 - 4855 Passcode: 445 723 85# Webcast: ir.huntsman.com

General Disclosure 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 statements include statements concerning our plans, objectives, goals, strategies, future events, future revenue or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, business trends and other information that is not historical information. When used in this presentation, the words “estimates,” “expects,” “anticipates,” “projects,” “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. All forward-looking statements, including, without limitation, management’s examination of historical operating trends and data, are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman’s operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, 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 the year ended December 31, 2017. All forward-looking statements attributable to us or persons acting on our behalf apply only as of the date made. We undertake no obligation to update or revise forward-looking statements which may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. This presentation contains financial measures that are not in accordance with generally accepted accounting principles in the U.S. ("GAAP"), including EBITDA, adjusted EBITDA, adjusted EBITDA from discontinued operations, adjusted net income (loss), adjusted diluted income (loss) per share, free cash flow and net debt. Reconciliations of non-GAAP measures to GAAP are provided in the financial schedules attached to the earnings news release and available on the Company's website at http://ir.huntsman.com/. 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. 1

Highlights Note: Pigments & Additives business is treated as discontinued operations in all periods shown 2Q18 2Q17 1Q18 ($ in millions, except per share amounts) Revenues $ 2,404 $2,054 $2,295 Net income $ 623 $ 183 $ 350 Adjusted net income $ 246 $ 144 $ 237 Diluted income per share $ 1.71 $ 0.69 $ 1.11 Adjusted diluted income per share $ 1.01 $ 0.59 $ 0.96 Adjusted EBITDA $ 415 $ 299 $ 405 Net cash provided by operating activities from continuing operations $ 228 $ 207 $ 111 Free cash flow $ 174 $ 154 $ 56 See Appendix for reconciliations and important explanatory notes 2

Polyurethanes Second Quarter 2018 Revenues Adjusted EBITDA Adjusted MDI Urethanes EBITDA Margin (3) $ in millions $ in millions Adjusted PU EBITDA Margin � 28% � 7% Y/Y Q/Q � 62% � 3% Y/Y Q/Q $1,313 30% $1,222 $269 $261 $1,022 25% 23% $167 21% 18% 21% 20% 20% 16% 15% 2Q18 2Q17 1Q18 2Q18 2Q17 1Q18 10% MDI Urethanes MTBE MDI Urethanes MTBE Sales Factors Highlights Price: Price: Mix & Current Quarter Volume (2) Local (1) FX (1) Other + Differentiated MDI volumes grew 13% � 10% � 4% � 14% Y/Y ---- + Stable differentiated MDI margins + Improved MTBE margins � 10% � 4% � 5% � 6% Y/Y (4) – Production constraints at Rotterdam impacted EBITDA ~$20mm � 1% � 1% � 7% Q/Q ---- Outlook Q/Q (5) � 2% � 3% � 11% ---- + Differentiated growth and stable margins + Continued strong MDI supply/demand fundamentals (1) Excludes sales from tolling, by-products and raw materials – Lower MTBE margins (2) Excludes sales volumes of by-products and raw materials (3) Excludes MTBE – Contracting short-term component MDI spike (4) Pro forma adjusted for 2Q17 Rotterdam planned maintenance, 2Q17 MTBE outage and the 2Q18 Rotterdam outages onset by 3 rd party constraints (5) Pro forma adjusted for the 2Q18 Rotterdam outages onset by 3 rd party constraints 3

MDI Market Outlook Industry status Continued focus on growth in core business Base EBITDA • Current global effective operating rates are ~90% Expected tight market conditions • Differentiated margins and demand remain strong and Short-term spike in margins ~$85 stable globally ~$25 ~$40 ~$40 • Component MDI pricing: – China component MDI pricing stabilized in Q2 following decline in Q1 – European component MDI pricing dropped ~10% in Q2 – US spot prices came under some pressure in Q2 although region remains tight 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Longer-term market outlook remains tight Focus on differentiated volume growth Continued volume growth in more stable, high value MDI Demand MDI Capacity differentiated business 10% excl. Demilec acquisition 17% 17% 16% 16% (‘000 ktes) 15% 15% 9.8 9.1 13% 13% Rotterdam T&I 7.6 6.7 6% 6% 6% 6% 6% 6% 6% 6% 3% 3% 2Q16 2Q16 3Q16 3Q16 4Q16 4Q16 1Q17 1Q17 2Q17 2Q17 3Q17 3Q17 4Q17 4Q17 1Q18 1Q18 2Q18 2Q18 Differentiated Differentiated 2017 2022 2017 2022 Component Component 4

Strategic Core Differentiated Business Remains Stable Polyurethanes Global Americas Jan'17 Jul Jan'18 Jan'17 Jul Jan'18 Europe Asia Jan'17 Jul Jan'18 Jan'17 Jul Jan'18 Short-term spiked margins All other margins 5

Performance Products Second Quarter 2018 Revenues Adjusted EBITDA Pro Forma Adj. EBITDA Margin (4) $ in millions Adjusted EBITDA Margin $ in millions � 6% � 2% � 8% � 8% Y/Y Q/Q Y/Y Q/Q (3) $109 $593 $603 Planned $561 $102 $102 T&I 30% (3) $94 25% 18% 20% 18% 15% 16% 17% 10% 5% 0% 2Q18 2Q17 1Q18 2Q18 2Q17 1Q18 Derivatives Upstream Intermediates Derivatives Upstream Intermediates & Other Sales Factors Highlights Price: Price: Mix & Volume (2) Current Quarter Local (1) FX (1) Other + Volume growth in specialty amines and maleic anhydride � 4% � 3% � 5% � 6% Y/Y – Port Neches multi-year scheduled maintenance ~$15mm EBITDA � 4% � 3% � 4% � 3% Y/Y (3) Outlook + Continued improvement in derivatives business � 1% � 9% � 10% + Continued strong glycol market conditions in intermediates Q/Q ---- ● Hurricane Harvey in 3Q17 impacted PP by ~$35mm � 1% � 9% � 4% Q/Q (3) ---- (1) Excludes sales from tolling, by-products and raw materials. (2) Excludes sales volumes of by-products and raw materials. (3) Pro forma adjusted to exclude the impact of the Planned T&I. 6

Advanced Materials Second Quarter 2018 Revenues Adjusted EBITDA $ in millions $ in millions Adj. EBITDA Margin Specialty & Differentiated Adjusted EBITDA Margin � 4% Y/Y 12% Q/Q � 11% � 5% Y/Y Q/Q $292 $279 $260 $62 $59 $56 26% 26% 26% 24% 25% 22% 21% 22% 21% 20% 18% 16% 14% 12% 2Q18 2Q17 1Q18 2Q18 2Q17 1Q18 10% Specialty Commodity Specialty Commodity Sales Factors Highlights Current Quarter Price: Price: Mix & Volume (2) Local (1) FX (1) Other + Record EBITDA in the specialty business + Specialty volumes grew 4% YOY � 4% � 4% � 2% � 2% Y/Y Outlook � 2% � 1% � 1% � 5% Q/Q + Consistent growth – Some raw material headwinds somewhat offset by price increases (1) Excludes sales from tolling, by-products and raw materials (2) Excludes sales volumes of by-products and raw materials 7