Wells Fargo Industrials Conference May 8, 2018
General Disclosure 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. We assume no obligation to provide revisions to any forward-looking statements should circumstances change, except as required by applicable laws. The forward-looking statements in this presentation 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, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, 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. Supplemental Information 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 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. Our financial statements and tax returns are prepared with certain components of inventory stated on the LIFO method for inventory valuation, and supplemental information is not intended to replace the primary published financial statements which include these inventories on a LIFO basis. Please refer to the primary published financial statements in our most recently filed Form 10-K and Forms 10-Q. 2
What We’ve Accomplished Management has Delivered on Strategic Objectives from 2016 Investor Day (March 2, 2016) Objectives Delivery Over $1bn cash generated in free cash flow Improve free cash flow generation for since 2016 (excluding P&A) deleveraging • $656mm in 2016 • $594mm in 2017 − 2016 improvement of $350mm Over $2.6bn debt repaid since beginning of 2016 − Ongoing cash flow improvement • ~$900mm from free cash flow and other − >$500mm debt reduction over next 3 • ~$1.7bn from VNTR proceeds years Separate TiO2 business Completed Venator IPO in August 2017 • Initial net proceeds of ~$1.2bn − Actively pursue a separation through a • Additional net proceeds of ~$0.5bn from follow on offering spinoff to shareholders or other • Expected orderly sell-down of remaining ~53% strategic transaction ownership − Preserve ~$9/share upside for HUN stockholders Grow downstream differentiated Approximately 75% of portfolio with greater than businesses 15% margins − ~65% of 2016 capital expenditures • 30% EBITDA growth in 2017 − >10% EBITDA CAGR 2015 to 2017F (1) Pro forma to exclude European surfactants business, which was sold to Innospec in 2016. Additionally, pro forma for the impact of Hurricane Harvey in 3Q17. 3 3
Core Strategic Focus • Cash Generation – Consistent strong annual free cash flow. Expect to generate between $450-$650 million per year for the upcoming years. – Monetize remaining Venator shares • Maintain investment grade profile and credit metrics • Continued focus on EBITDA growth through both organic growth and sensible bolt-on acquisitions in downstream specialty and differentiated businesses • Strong shareholder returns via appropriate dividend and opportunistic repurchase of shares up to $450 million Downstream Increased Maintain IG $450M - $650M Differentiated Shareholder Credit Metrics Free Cash Flow Annually Growth Returns Approximately 2.0x 4
Focus on Differentiated Businesses Majority of 2017 EBITDA comes from high margin businesses 35% Polyurethanes Specialty Margins Performance Products represent ~75% of HUN EBITDA (excluding corporate) Advanced Materials Specialty margins Textile Effects 30% 25% Typical EBITDA Margin 20% Highly variable margins 15% Specialty Dyes & Chemicals Differentiated Dyes & Chem. Transportation & Industrial Differentiated MDI Coatings & Construction 10% Urethanes Electrical & Electronic Polyetheramines & Maleic Anhydride Component MDI Ethyleneamines 5% Other, net** Surfactants 0% Width= 2017 Adj EBITDA ** Other includes MTBE, minority interest, upstream intermediates, ethanolamines, LAB, Admat’s wind, BLR & Other and TE’s value dyes & chemicals. Margins for “other” are based on 2017 results 5
Differentiated vs. Cyclical Focused on Growth of Downstream Differentiated Businesses Continued Differentiated EBITDA growth $1,400 Businesses (1)(2) 12% CAGR 2009 – 2017 $1,150 Adjusted EBITDA $900 ($ in millions) $650 $400 Cyclical $150 Businesses (1) (MTBE and Ethylene) ($100) 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q17 LTM (1) Pro forma to exclude the Pigments & Additives divisions, which is treated as discontinued operations after the IPO in 3Q17. (2) Pro forma Adjusted to remove the December 30, 2016 sales of the European Surfactants Business to Innospec. 6
Cash and Debt Free Cash Flow Focused Cash Flow Management Conversion rate • ~$120mm interest annual run rate • 2018 est. CAPEX of ~$325mm (maintenance $800 CAPEX generally ~$175mm) $600 68% • 2018 effective tax rate ~20%-22% $400 • Long-term effective tax rate ~23%-25% 47% • Disciplined working capital management $200 $0 2016 2017 2018 + Debt reduced well within investment grade metrics 3.8x 6 4.0x 3.4x 3.2x Increased dividend by 30% 3.5x 5 2.9x Investment from 50 cents to 65 cents 3.0x $4.5 grade type 4 annually 2.5x 2.2x leverage metrics $3.8 $3.8 $3.6 3 2.0x 1.4x 1.3x 1.5x $2.4 2 $1.9 $1.8 1.0x Approved $450 million share 1 0.5x repurchase program. Spent - 0.0x over $100 million to date 2015 2016 1Q 2017 2Q 17 3Q 17 4Q 17 1Q 18 Net Debt Leverage ratio 7
Portfolio Composition (1) Revenue (2) Adjusted EBITDA (2)(3) 1Q18 LTM Textile Effects Revenues Textile Effects 9% Advanced Advanced 5% Materials $8.7 Materials 12% 14% billion Polyurethanes Adjusted Performance Polyurethanes 54% EBITDA Performance Products 61% Products 20% $1.4 25% billion Adjusted EBITDA (3) End Markets 2017 Revenues Source: Management estimates $ in millions Adj. EBITDA Margin Paints & Coatings 2% $1,404 Agrochemicals 3% $1,263 $1,259 $1,056 Adhesives, Coatings & Aerospace 2% $1,139 Elastomers 6% $1,098 Construction Materials $969 Consumer 32% 7% Apparel Intermediate Chemicals 16% 15% 11% 7% 14% 13% Automotive & Marine 9% 13% Industrial Applications 12% 11% Home Furnishings 7% 10% Household Products 5% Energy & Fuel Additives 14% Insulation 17% (1) ) Pro forma to exclude the Pigments & Additives business, which is treated as discontinued operations after the IPO on August 8, 2017. 2012 ⁽⁴⁾ 2013 ⁽⁴⁾ 2014 ⁽⁴⁾ 2015 ⁽⁴⁾ 2016 ⁽⁴⁾ 2017 1Q18 (2) Segment allocation is before Corporate and other unallocated items LTM (3) See Appendix for a reconciliation Differentiated Cyclical (4) Excludes European surfactants business, which was sold to Innospec on December 30,2016 8
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