Huntsman Corporation (NYSE:HUN) Q2 2022 Results Conference Call August 2, 2022 10:00 AM ET Company Participants Ivan Marcuse - Vice President of Investor Relations Peter Huntsman - Chairman, CEO and President Phil Lister - Executive Vice President and CFO Conference Call Participants Kevin McCarthy - Vertical Research Partners Matthew Blair - Tudor, Pickering, Holt Aleksey Yefremov - KeyBanc Capital Markets Laurence Alexander - Jefferies Dan Rizzo - Jefferies Frank Mitsch - Fermium Research Hassan Ahmed - A ...

[PART I FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [ITEM 1. Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements for Huntsman Corporation and its principal operating subsidiary, Huntsman International LLC, for the quarterly period ended June 30, 2022 It includes balance sheets, statements of operations, comprehensive income, equity, and cash flows, along with detailed notes explaining the accounting policies and financial details [Huntsman Corporation and Subsidiaries: Unaudited Condensed Consolidated Financial Statements](index=5&type=section&id=Huntsman%20Corporation%20and%20Subsidiaries%3A%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) For the six months ended June 30, 2022, Huntsman Corporation reported total revenues of $4,751 million, a 23% increase year-over-year, and a net income of $482 million, up from $272 million in the prior year period Diluted EPS from continuing operations was $2.13 The balance sheet shows total assets of $8,721 million as of June 30, 2022 Net cash provided by operating activities was $316 million Huntsman Corporation - Key Financials (Six Months Ended June 30, 2022) | Financial Metric | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Total Revenues** | $4,751 million | $3,861 million | | **Gross Profit** | $1,103 million | $823 million | | **Operating Income** | $597 million | $335 million | | **Net Income** | $482 million | $272 million | | **Diluted EPS (Continuing Operations)** | $2.13 | $1.06 | | **Net Cash from Operating Activities** | $316 million | $(24) million | Huntsman Corporation - Balance Sheet Summary | Balance Sheet Item | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $3,437 million | $3,928 million | | **Total Assets** | $8,721 million | $9,392 million | | **Total Current Liabilities** | $1,622 million | $2,051 million | | **Total Liabilities** | $4,370 million | $4,833 million | | **Total Equity** | $4,351 million | $4,559 million | [Huntsman International LLC and Subsidiaries: Unaudited Condensed Consolidated Financial Statements](index=13&type=section&id=Huntsman%20International%20LLC%20and%20Subsidiaries%3A%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) As the principal operating company, Huntsman International LLC's financial results are nearly identical to the consolidated parent For the six months ended June 30, 2022, it reported total revenues of $4,751 million and net income of $486 million Total assets stood at $9,479 million The primary differences in financial statements relate to intercompany transactions and capital structure Huntsman International LLC - Key Financials (Six Months Ended June 30, 2022) | Financial Metric | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Total Revenues** | $4,751 million | $3,861 million | | **Operating Income** | $602 million | $340 million | | **Net Income** | $486 million | $275 million | | **Net Cash from Operating Activities** | $319 million | $(24) million | - Huntsman International LLC is the **principal operating company**, and its financial information is **largely applicable to Huntsman Corporation**, with differences primarily in **capital structure** and certain **intercompany accounts**[8](index=8&type=chunk)[9](index=9&type=chunk)[46](index=46&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=19&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies and specific financial items Key highlights include the finalization of the Gabriel Performance Products acquisition valuation, details on the sale of the Venator interest, a new $1.2 billion revolving credit facility established in May 2022, a $2 billion share repurchase program with significant activity in Q2, and segment performance breakdowns - On May 20, 2022, Huntsman International entered into a new **$1.2 billion senior unsecured revolving credit facility** maturing in May 2027 This facility includes **sustainability-linked adjustments** to interest rates and fees[47](index=47&type=chunk)[69](index=69&type=chunk) - The company's Board of Directors increased the share repurchase program authorization to **$2 billion** During the six months ended June 30, 2022, the company repurchased **13.9 million shares** for approximately **$501 million**[93](index=93&type=chunk) - In Q2 2021, the company received a **$28 million payment** from an earnout provision related to the 2020 sale of its India-based DIY business, recognizing a **pretax gain**[55](index=55&type=chunk) - A jury awarded the company approximately **$94 million** in a litigation against Praxair/Linde Including interest, the total award is expected to exceed **$125 million**, but it is subject to appeal and has not been recognized in the financial statements[48](index=48&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for the second quarter and first half of 2022 Revenue grew 17% in Q2 and 23% in H1 2022 year-over-year, driven by higher average selling prices across all segments Adjusted EBITDA also saw significant growth The outlook for Q3 2022 is provided for each segment, anticipating some headwinds from weaker demand in Europe and seasonality The discussion also covers liquidity, highlighting a strong position with over $2 billion in combined cash and unused borrowing capacity, and details on capital allocation, including share repurchases and cost-saving initiatives [Results of Operations](index=52&type=section&id=Results%20of%20Operations) For Q2 2022 vs Q2 2021, revenues increased 17% to $2,362 million and adjusted EBITDA rose 29% to $432 million The growth was driven by higher MDI margins in Polyurethanes and strong performance in Performance Products For H1 2022 vs H1 2021, revenues increased 23% to $4,751 million and adjusted EBITDA grew 36% to $847 million Higher average selling prices were the primary driver, though sales volumes were impacted by lockdowns in China and strategic deselection of lower-margin business Huntsman Corporation - Overall Performance vs. Prior Year | Metric | Q2 2022 vs Q2 2021 | H1 2022 vs H1 2021 | | :--- | :--- | :--- | | **Revenues** | +17% | +23% | | **Gross Profit** | +25% | +34% | | **Operating Income** | +40% | +78% | | **Adjusted EBITDA** | +29% | +36% | Segment Adjusted EBITDA (Q2 2022 vs Q2 2021) | Segment | Q2 2022 Adj. EBITDA | Q2 2021 Adj. EBITDA | % Change | | :--- | :--- | :--- | :--- | | Polyurethanes | $229 million | $208 million | +10% | | Performance Products | $152 million | $88 million | +73% | | Advanced Materials | $67 million | $58 million | +16% | | Textile Effects | $22 million | $28 million | (21)% | - The Polyurethanes segment's EBITDA increase was driven by **higher MDI margins**, partially offset by **lower volumes** due to Shanghai lockdowns and **negative currency impacts**[175](index=175&type=chunk) - The Performance Products segment saw a **significant EBITDA increase** due to **higher average selling prices** from commercial excellence programs and response to rising raw material costs[176](index=176&type=chunk) [Outlook](index=51&type=section&id=Outlook) The company provides adjusted EBITDA estimates for Q3 2022 Polyurethanes are projected at $170-$200 million, impacted by weaker European demand Performance Products are estimated at $130-$140 million, driven by the Americas but facing seasonality Advanced Materials are expected at $58-$63 million, with stable industrial markets Textile Effects are projected at $20-$22 million, similar to the prior year The full-year 2022 adjusted effective tax rate is expected to be 22% to 24% Q3 2022 Adjusted EBITDA Outlook | Segment | Estimated Q3 2022 Adj. EBITDA | | :--- | :--- | | Polyurethanes | $170 million - $200 million | | Performance Products | $130 million - $140 million | | Advanced Materials | $58 million - $63 million | | Textile Effects | $20 million - $22 million | - The company expects its full-year 2022 **adjusted effective tax rate to be between 22% and 24%**[146](index=146&type=chunk) [Liquidity and Capital Resources](index=68&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2022, Huntsman had $2,052 million of liquidity, comprising $608 million in cash and $1,444 million in unused borrowing capacity Working capital decreased slightly to $1,815 million Key cash flow activities in H1 2022 included $316 million provided by operations, $138 million in capital expenditures, and $504 million used for share repurchases The company also received the final $332.5 million payment from the Albemarle settlement - As of June 30, 2022, the company had **$2,052 million of combined cash and unused borrowing capacity**[206](index=206&type=chunk) - Net cash from operating activities increased to **$316 million** for H1 2022 from a use of **$23 million** in H1 2021, driven by **higher operating income**[193](index=193&type=chunk) - Key uses of cash in H1 2022 included **$504 million for share repurchases** and **$138 million for capital expenditures**[194](index=194&type=chunk)[195](index=195&type=chunk) - The company received the final arbitration award payment of **$332.5 million** from Albemarle in Q2 2022 and paid related legal fees and taxes of approximately **$255 million**[198](index=198&type=chunk)[209](index=209&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=73&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks including changes in interest rates, foreign exchange rates, and commodity prices It uses derivative instruments from time to time to manage some of these exposures and also hedges its net investment in certain European operations - The company is exposed to market risks from **interest rates**, **foreign exchange rates**, and **commodity prices**[212](index=212&type=chunk) - Derivative instruments are used periodically to manage these exposures, and the company **hedges its net investment in some European operations**[80](index=80&type=chunk)[212](index=212&type=chunk) [ITEM 4. Controls and Procedures](index=73&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2022 There were no material changes to internal control over financial reporting during the quarter - Management concluded that as of June 30, 2022, the company's **disclosure controls and procedures were effective**[213](index=213&type=chunk) - No **material changes** were made to the **internal control over financial reporting** during the quarter ended June 30, 2022[214](index=214&type=chunk) [PART II OTHER INFORMATION](index=74&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=74&type=section&id=ITEM%201.%20Legal%20Proceedings) This section states that there have been no material developments regarding the legal proceedings that were previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2021 - There were **no material developments** in legal proceedings since the last Annual Report on Form 10-K[216](index=216&type=chunk) [Risk Factors](index=74&type=section&id=ITEM%201A.%20Risk%20Factors) This section refers the reader to the detailed discussion of risk factors in the company's Annual Report on Form 10-K for the year ended December 31, 2021, indicating no material changes or additions to those risks - The company refers to the **Risk Factors section** of its 2021 Annual Report on Form 10-K for information on risk factors[217](index=217&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=74&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the second quarter of 2022, Huntsman repurchased 8,371,423 shares of its common stock for approximately $291 million under its publicly announced share repurchase program The board had previously increased the program's authorization to $2 billion Share Repurchases (Q2 2022) | Period | Total Shares Purchased | Average Price Paid | Shares Purchased Under Program | | :--- | :--- | :--- | :--- | | April 2022 | 1,727,274 | $34.80 | 1,704,834 | | May 2022 | 5,765,097 | $34.82 | 5,765,001 | | June 2022 | 902,011 | $34.26 | 901,588 | | **Total Q2** | **8,394,382** | **$34.76** | **8,371,423** | - The Board of Directors increased the share repurchase program authorization from **$1 billion to $2 billion** on March 25, 2022[220](index=220&type=chunk) [Exhibits](index=75&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q Notable exhibits include the new Credit Agreement dated May 20, 2022, and certifications from the CEO and CFO as required by the Sarbanes-Oxley Act - Key exhibits filed include the **new Credit Agreement** from May 2022, **CEO/CFO certifications**, and **XBRL data files**[224](index=224&type=chunk)

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------|-------|---------------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1Q22 Earnings | | | | | | | | | Summary April 28, 2022 | | | | | | | | | | | | | | | | | | | | | 2 1st Quarter 2022 Earnings Summary Conference Call Thursday, April 28, 2022 10:00 a.m. ET Webcast Link: https://services.choruscall.com/mediaframe/webcast.html?webcastid=Kvy ...

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by $116 million to $415 million, a 44% improvement compared to Q1 2021, with a sequential improvement of $66 million or 19% [36] - Adjusted earnings per share rose to $1.19 from $0.65 in Q1 2021, reflecting strong financial performance [46] - Free cash flow was positive despite over $200 million of working capital inflation due to rising raw materials and energy prices [42] Business Line Data and Key Metrics Changes - Polyurethanes division reported adjusted EBITDA of $224 million, an 8% increase year-over-year, with revenues growing by 30% primarily due to price increases [6] - Performance Products achieved adjusted EBITDA of $146 million, a 57% increase in revenues, with adjusted EBITDA margins rising to 30% [18] - Advanced Materials reported adjusted EBITDA of $67 million, the strongest quarter in the division's history, with a 20% adjusted EBITDA margin [25] - Textile Effects division's adjusted EBITDA was $28 million, 12% above the prior year, with a record margin of 14% [31] Market Data and Key Metrics Changes - Volumes growth in the Americas region was 7%, followed by Asia at 4% and Europe at 2% [7] - The company expects to be negatively impacted in Asia, specifically China, due to government-mandated lockdowns [8] - The European market remains stable despite the ongoing war in Ukraine, with demand driven by construction and adhesives [8] Company Strategy and Development Direction - The company is focused on a value-over-volume strategy, aiming to enhance margins by upgrading to higher-value products [12] - Strategic investments include the new MDI splitter in Geismar, Louisiana, expected to add $45 million of annual EBITDA by 2024 [13] - The company is pursuing targeted capital investments in polyurethane catalysts and differentiated chemicals for electric vehicles and semiconductors [22] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about overall demand due to geopolitical tensions, inflation, and COVID-related lockdowns in China [70] - Despite challenges, management remains optimistic about maintaining strong margins and pricing power [73] - The company expects second quarter adjusted EBITDA for polyurethanes to be in the range of $210 million to $230 million [17] Other Important Information - The company has a strong balance sheet with total liquidity of $2.3 billion and net debt leverage of 0.5x [45] - A dividend increase of $0.10 per share or 13% was announced during the first quarter [46] - The company plans to repurchase approximately $1 billion of shares in 2022, with a total return of capital to shareholders expected to be around 15% [47] Q&A Session Summary Question: Can you talk about the aerospace recovery? - Management indicated that the aerospace segment is recovering, currently at a $60 million run rate, with expectations to return to pre-COVID levels by the end of next year [58][60] Question: Are you more optimistic about Performance Products' long-term targets? - Management leans towards a long-term margin target of 25% rather than 20%, citing strong demand and pricing discipline [62][64] Question: How should we think about the second half of the year? - Management believes the second half could be as strong or stronger than the first half, but expressed concerns about overall demand and potential impacts from China [68][70] Question: Can you discuss MDI manufacturing competitiveness in Europe? - Management feels confident about their position in the Netherlands, benefiting from renewable energy sources and a strong customer base [75][76] Question: Will you consider adding capacity moving forward? - Management is focused on internal projects for efficiency rather than large greenfield investments, preferring to upgrade existing capacities [81][119]

Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | | | State of | | | --- | --- | --- | --- | | Commission | Exact Name of Registrant as Specified in its Charter, | Incorporation | I.R.S ...

Financial Highlights - The company's Q4 2021 revenues reached $2307 million, compared to $1668 million in Q4 2020[7] - Adjusted EBITDA for Q4 2021 was $349 million, up from $240 million in Q4 2020[7] - Free cash flow from continuing operations was $698 million in Q4 2021, significantly higher than the $88 million in Q4 2020[7] - Full year 2021 adjusted EBITDA reached $1343 million, compared to $647 million for the full year 2020[7] Segment Performance - Polyurethanes revenue increased by 35% year-over-year, reaching $1393 million in Q4 2021[9] - Performance Products revenue increased by 55% year-over-year, reaching $410 million in Q4 2021[14] - Advanced Materials revenue increased by 53% year-over-year, reaching $317 million in Q4 2021[18] - Textile Effects revenue increased by 13% year-over-year, reaching $195 million in Q4 2021[21] Outlook and Strategy - The company is targeting ~$240 million in run rate benefits from cost realignment and synergy plans by the end of 2023[23] - The company estimates Q1 2022 adjusted EBITDA to be between $350 million and $380 million[29] - The company repurchased ~7 million shares for ~$203 million in H2 2021, including ~3 million shares repurchased in Q4 2021[28]

Huntsman Corporation (NYSE:HUN) Q4 2021 Earnings Conference Call February 15, 2022 10:00 AM ET Company Participants Ivan Marcuse - VP, IR Peter Huntsman - Chairman, President and CEO Phil Lister - EVP and CFO Conference Call Participants Robert Koort - Goldman Sachs Aleksey Yefremov - KeyBanc Capital Markets Angel Castillo - Morgan Stanley David Begleiter - Deutsche Bank Hassan Ahmed - Alembic Global Advisors Frank Mitsch - Fermium Research Mike Leithead - Barclays John Roberts - UBS Kevin McCarthy - Vertic ...

Acquisition and Expansion - Huntsman Corporation completed the acquisition of Gabriel Performance Products for approximately $249 million on January 15, 2021, integrating it into the Advanced Materials segment[39]. - The company has made several "bolt-on" acquisitions to expand its downstream footprint and align with strategic growth objectives[58]. Financial Performance and Costs - The company redeemed €445 million (approximately $541 million) of its 5.125% senior notes due 2021, incurring a cash tax liability of approximately $15 million related to foreign currency exchange gains[39]. - Raw material costs constitute a significant percentage of production costs, with supply contracts in place to manage procurement[104]. - Raw material costs constitute a significant percentage of sales for certain applications, with no single raw material exceeding 7% of expenditures[128]. - Capital expenditures for environmental, health, and safety (EHS) matters totaled $45 million in 2021, with an estimated $65 million planned for 2022[144]. - The company has incurred capital expenditures for EHS matters of $28 million in 2020 and $42 million in 2019[144]. Production and Capacity - Huntsman operates three major polyurethane manufacturing facilities in the U.S., Europe, and China, along with 29 strategically located downstream facilities[42]. - The total annual production capacity of polyurethane chemicals across select facilities is 2,921 million pounds for MDI, 593 million pounds for polyols, and 131 million pounds for TPU[60]. - The Performance Products segment has a total production capacity of 884 million pounds for amines and 571 million pounds for maleic anhydride across 10 manufacturing locations[82]. Product Offerings and Market Focus - Huntsman produces over 2,800 distinct MDI-based polyurethane products, which are increasingly replacing traditional products across various end-use markets[43]. - The company markets polyurethane chemicals to over 7,500 customers in more than 95 countries, focusing on key end-use markets such as automotive, insulation, and coatings[56]. - The Advanced Materials segment is a leading global manufacturer of advanced polymer products, focusing on customer-specific needs across various industries[90]. - Advanced Materials products are used in applications requiring high performance, such as lightweight materials in aerospace and automotive sectors[90]. - The company serves over 2,400 customers in end markets including aerospace, automotive, oil and gas, and construction[91]. Research and Development - Huntsman has a world-scale integrated polyurethane formulations facility and a research and development campus in China to support the growing demand in the region[44]. - The company maintains approximately 3,080 unexpired patents and has about 1,055 pending patent applications[132]. - The company has approximately 4,600 trademark registrations and 395 pending trademark applications globally[135]. Environmental and Regulatory Considerations - The EU has set a binding target to reduce domestic GHG emissions by at least 40% below 1990 levels by 2030 and to increase the share of renewable energy to at least 32% of the EU's energy consumption by 2030[148]. - The European Commission proposed legislation to increase the GHG emission reduction target to at least 55% and the renewable energy target to 40%[148]. - The U.S. aims to reduce global methane emissions at least 30% below 2020 levels by 2030 as part of the Global Methane Pledge[149]. - Domestic efforts to curb GHG emissions are led by the U.S. EPA's GHG regulations, which may increase capital and operating costs for new or expanded facilities[150]. - Potential future GHG emission restrictions could lead to increased energy costs and direct compliance costs, although current financial impacts are not estimable[152]. - Increasing concentrations of GHGs may lead to significant climate changes, potentially adversely affecting assets and operations[153]. Market Risks and Management - The company is exposed to market risks, including changes in interest rates, foreign exchange rates, and commodity prices[325]. - The company engages in transactions involving derivative instruments to manage market risk exposures[325]. - The company hedges its net investment in certain European operations to mitigate foreign exchange rate risk[327]. - The company monitors commodity price risks and employs hedging activities to manage these risks[328]. Customer Relations and Service - The company has strategically located downstream polyurethane systems houses to enhance customer support and technical service, contributing to customer retention[57]. - The company emphasizes multiple routes to market, including direct sales and specialized distribution, to efficiently reach a diverse customer base[100]. - The company operates 12 technical services laboratories globally, enhancing customer service speed and flexibility[126]. - The company maintains long-standing relationships with customers, which is critical for sales and marketing success[101]. Competitive Landscape - The company competes in the polyurethane chemicals market by emphasizing customer support and innovative solutions, differentiating itself from competitors like BASF and Dow[67]. - The competitive landscape includes major players like 3M, BASF, and Henkel, with a focus on product performance and innovation[106].

Huntsman Corporation (NYSE:HUN) Q3 2021 Earnings Conference Call October 29, 2021 10:00 AM ET Company Participants Ivan Marcuse - VP, IR Peter Huntsman - Chairman, President and CEO Phil Lister - EVP and CFO Tony Hankins - President, Polyurethanes Conference Call Participants Frank Mitsch - Fermium Research Bob Koort - Goldman Sachs Mike Sison - Wells Fargo Hassan Ahmed - Alembic Global David Begleiter - Deutsche Bank Kevin McCarthy - Vertical Research Partners Matthew DeYoe - Bank of America Mike Harrison ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | | | State of | | | --- | --- | --- | --- | | Commission | Exact Name of Registrant as Specified in its Charter, | Incorporation | I ...