Earnings Summary Fourth Quarter 2016 Conference Call Wednesday, - PowerPoint PPT Presentation

Earnings Summary Fourth Quarter 2016 Conference Call Wednesday, February 15, 2017 10:00 a.m. ET U.S. Participants: (888) 713–4209 International Participants: (617) 213–4863 Passcode: 20741841# Webcast: ir.huntsman.com

Forward Looking Statements 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 spin-off of Venator Materials Corporation, 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. All forward-looking statements attributable to us or persons acting on our behalf apply only as of the date made and are expressly qualified in their entirety by the cautionary statements included in this presentation. 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, normalized EBITDA, adjusted net income (loss), adjusted diluted income (loss) per share, free cash flow and net debt. The Company has provided reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures in the Appendix to this presentation. 1

Highlights ($ in millions, except per share amounts) 4Q16 4Q15 3Q16 2016 2015 Revenues $2,395 $2,332 $2,363 $ 9,657 $10,299 $ 137 $ 9 $ 64 $ 357 $ 126 Net income Adjusted net income $ 72 $ 124 $ 91 $ 377 $ 492 Diluted income per share $ 0.53 $ 0.02 $ 0.23 $ 1.36 $ 0.38 Adjusted diluted income per share $ 0.30 $ 0.51 $ 0.38 $ 1.57 $ 2.00 Adjusted EBITDA $ 256 $ 240 $ 272 $ 1,127 $ 1,221 Net cash provided by operating activties $ 240 $ 188 $ 405 $ 1,088 $ 575 Free cash flow $ 117 $ (29) $ 300 $ 686 $ (30) See Appendix for reconciliations and important explanatory notes 2

Polyurethanes Fourth Quarter 2016 Revenues Adjusted EBITDA $ in millions $ in millions Adjusted EBITDA Margin � 6% � 8% � 8% � 5% Y/Y Q/Q Y/Y Q/Q $964 45% $909 $891 $141 $137 $130 35% 25% 15% 16% 13% 15% 5% 4Q16 4Q15 3Q16 4Q16 4Q15 3Q16 -5% MDI Urethanes MTBE MDI Urethanes MTBE Sales Factors Highlights Current Quarter Price: Price: Mix & Volume (2) + Differentiated MDI sales volume growth of 6% globally for full year Local (1) FX (1) Other + Strong MDI demand growth in N. America – Low MTBE margins � 4% � 1% � 3% Y/Y ---- Outlook � 4% � 1% � 9% Y/Y (3) ---- + Continued focus on downstream MDI differentiation + MDI demand growth � 7% � 1% � 1% � 3% + 2017 EBITDA improvement Q/Q – Low MTBE margins � Planned maintenance at Rotterdam production facility � 7% � 1% � 1% � 2% Q/Q (3) (1) Excludes sales from tolling, by-products and raw materials (2) Excludes sales volumes of by-products and raw materials (3) Excludes volume impact from weather related and other outages in 2H16 3

Performance Products Fourth Quarter 2016 Revenues Adjusted EBITDA $ in millions $ in millions Adjusted EBITDA Margin � 7% � 1% � 11% � 3% Y/Y Q/Q Y/Y Q/Q $552 $76 $515 $509 $70 $68 14% 14% 13% 4Q16 4Q15 3Q16 4Q16 4Q15 3Q16 Sales Factors Highlights Current Quarter Price: Price: Mix & Volume (2) Local (1) FX (1) Other + Q/Q EBITDA benefit from intermediate chemicals and self-help business improvement � 5% � 3% � 1% Y/Y ---- + Sale of European surfactants business at enterprise value of $225 mm – Soft demand in wind, agrochemicals and oilfield applications � 5% � 3% � 6% Y/Y (3) ---- Outlook � 1% + 2017 EBITDA improvement Q/Q ---- ---- ---- + Amines and Maleic showing signs of recovery – Margins lower than historical norms � 1% � 1% Q/Q (3) ---- ---- – 2H17 EO maintenance: $50mm cash, $15mm EBITDA (1) Excludes sales from tolling, by-products and raw materials (2) Excludes sales volumes of by-products and raw materials (3) Excludes volume impact from weather related and other outages in 2H16 4

Advanced Materials Fourth Quarter 2016 Revenues Adjusted EBITDA $ in millions $ in millions Adjusted EBITDA Margin � 4% � 4% � 9% Y/Y Q/Q ---- Y/Y Q/Q $55 $50 $48 $256 $246 $247 22% 20% 19% 4Q16 4Q15 3Q16 4Q16 4Q15 3Q16 Sales Factors Highlights Current Quarter Price: Price: Mix & Volume (2) Local (1) FX (1) Other + EBITDA margin improvement + Aerospace market remains strong � 2% � 1% � 3% Y/Y ---- + Strong volume growth in Electronic and Electricals markets – Soft demand in low value wind, coatings and construction markets � 1% � 1% � 1% � 1% Q/Q Outlook + Strong aerospace market > 1/3 of earnings (1) Excludes sales from tolling, by-products and raw materials (2) Excludes sales volumes of by-products and raw materials + 2017 Modest EBITDA improvement – Slow start in 2017, 1Q17 EBITDA similar to 4Q16 5

Textile Effects Fourth Quarter 2016 Revenues Adjusted EBITDA $ in millions $ in millions Adjusted EBITDA Margin � 1% � 8% � 18% Y/Y Q/Q ---- Y/Y Q/Q $17 $186 $184 $184 $14 $13 9% 8% 7% 4Q16 4Q15 3Q16 4Q16 4Q15 3Q16 Sales Factors Highlights Current Quarter Price: Price: Mix & Volume (2) Local (1) FX (1) Other + 8% sales volume growth + Full year 2016 RONA 13% � 8% � 1% � 8% Y/Y ---- Outlook � 1% � 1% � 1% � 1% Q/Q + 2017 EBITDA increase (1) Excludes sales from tolling, by-products and raw materials (2) Excludes sales volumes of by-products and raw materials 6

Pigments & Additives Fourth Quarter 2016 Revenues Adjusted EBITDA $ in millions $ in millions � 21% � 8% � 8% Y/Y n/m Q/Q Y/Y Q/Q $46 $38 $532 $453 $491 9% 7% $0 0% 4Q16 4Q15 3Q16 4Q16 4Q15 3Q16 Sales Factors Highlights Current Quarter Price: Price: Mix & Volume (2) Local (1) FX (1) Other + 2016 EBITDA double that of 2015 + Seasonal demand slowdown less than typical � 7% � 1% � 3% � 5% Y/Y + Improved TiO2 selling prices � 3% � 1% � 2% � 8% Q/Q Outlook + Increasing TiO2 selling prices + 2017 meaningful EBITDA improvement – Impact of Pori fire � Lawsuit against Rockwood and Albemarle for fraud and breach of (1) Excludes sales from tolling, by-products and raw materials contract related to Augusta facility (2) Excludes sales volumes of by-products and raw materials 7

Adjusted EBITDA Bridge Fourth Quarter 2016 Year / Year Quarter / Quarter $ in millions $ in millions $89 $14 $1 $46 $272 $256 $20 $240 $256 $25 $78 $6 $21 3Q16 Volume Price Direct Costs SG&A, 4Q16 4Q15 Volume Price Direct Weather SG&A, 4Q16 Adjusted Indirect Adjusted Adjusted Costs related and Indirect Adjusted EBITDA Costs, FX, EBITDA EBITDA other plant Costs, FX, EBITDA Other outages Other 8