Huntsman Corporation · NYSE:HUN
Huntsman — Investor Day (November 2021)
80 slides from Huntsman's investor day presentation, Nov 9, 2021
Slide 1: Huntsman Investor Day November 9, 2021
1 Huntsman Investor Day November 9, 2021
Slide 2: General Disclosure Forward-Looking Statements
2 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, ob
Slide 3: Agenda 2021 Investor Day
3 Agenda 2021 Investor Day Start Time Event Presenter 10:00 AM 30 mins Welcome Reception Management Team 10:30 AM 20 mins Company Overview Peter Huntsman Chairman, President and CEO 10:50 AM 30 mins Advanced Materials* Scott Wright Division President 11:20 AM 30 mins Performance Products* Chuck Hirs
Slide 4: Company Overview
4 Company Overview Peter Huntsman Chairman, President and CEO
Slide 5: Our Mission: Enriching Lives Through Innovation
5 2021 Huntsman Investor Day 5 Our Mission Enriching Lives Through Innovation For 50 years, our employees have been using science and ingenuity to create innovations that play a critical role in the everyday lives of many millions of people. We work in deep partnership with our customers to create s
Slide 6: Creating a Simplified, Higher Value-Added Portfolio
6 Divested Current Creating a Simplified, Higher Value-Added Portfolio Company Overview 2021 Huntsman Investor Day 2005 2017 Today What We No Longer Sell • Benzene • Butadiene • Ethylene Glycol • Ethylene Oxide • LAB • Polyethylene • Propylene • Polypropylene • Polystyrene • Titanium Dioxide • Tolue
Slide 7: Focus on Growing EBITDA Margin and Free Cash Flow Conversion
7 Focus on Growing EBITDA Margin and Free Cash Flow Conversion 2021 Huntsman Investor Day Company Overview 40%+ FCF Conversion Deliver on Cost Optimization Plans & Synergy Savings Invest in High Margin, High Return Projects Strategic Bolt-on M&A Upgrade Polyurethanes Portfolio for Improved Margin &
Slide 8: Transformation
8 Transformation 2021 Huntsman Investor Day Company Overview 8 2016 2018 3Q 2021 Adj. EBITDA Margin 12% 15% 16% Credit Rating High Yield High Yield Investment Grade Net Leverage 3.4x 1.3x 0.9x Shareholder Return - Dividends $0.50 per share $0.65 per share $0.75 per share Shareholder Return - Buyback
Slide 9: Significant Progress since Our 2018 Investor Day
9 Significant Progress since Our 2018 Investor Day Company Overview 2021 Huntsman Investor Day 2021 Huntsman Investor Day 9 Since 2018 Repurchased $682 million of shares as of September 2021 January 2020 Divested Chemical Intermediates and Surfactants businesses to Indorama Ventures for ~$2 billion
Slide 10: Huntsman's Portfolio Today
10 Huntsman’s Portfolio Today 2021 Huntsman Investor Day Company Overview Note: All figures reflect Huntsman Corporation continuing operations. Polyurethanes Performance Products Advanced Materials Textile Effects Total 3Q21 LTM Sales Revenue by Region 3Q21 LTM Sales Revenue 3Q21 LTM Adj. EBITDA 3Q2
Slide 11: Where We are Going (2022 – Beyond)
11 Where We are Going (2022 – Beyond) Company Overview Grow Differentiated .. High return internal capital projects .. M&A disciplined, bolt-on acquisitions .. New product development .. Upgrade commodity molecules Generate 40%+ Free Cash Flow .. Capital expenditure discipline .. Increase operating
Slide 12: Strategic Intent Across Portfolio: Quality over Quantity
12 Strategic Intent Across Portfolio Focus on Quality over Quantity Company Overview 2021 Huntsman Investor Day 12 In Last 5 Years, the Divisions delivered… Polyurethanes .. Grew differentiated volume: +5% .. Deselected commodity MDI volume: -2% .. Acquired IFS, Demilec and Icynene-Lapolla, formed H
Slide 13: The Road to an Improved EBITDA Margin
13 The Road to an Improved EBITDA Margin Financial Overview 2021 Huntsman Investor Day Initiatives to add 300-350 bps to Adj. EBITDA Margin Current Cost Optimization & Synergies ~$35M Fixed Cost Reduction Aerospace Recovery ~$45M Adj. EBITDA Improvement Key Capex Projects Geismar MDI Splitter ~$45M
Slide 14: Balanced Capital Allocation Strategy
14 Balanced Capital Allocation Strategy 2021 Huntsman Investor Day Company Overview Maintain Investment Grade Balance Sheet Net Debt Leverage ≤ 2 times on average $276M in 2018 $208M in 2019 $96M in Q1 2020 $102M in Q3 2021 Share Repurchases Bolt-on Acquisitions Attractive Dividend $0.75 per year In
Slide 15: Strengthened Balance Sheet and Accelerated Return of Capital
15 Since 2018: Strengthened Our Balance Sheet and Accelerated Return of Capital to Shareholders 2021 Huntsman Investor Day Company Overview $2.2B $1.0B 2018-2021 Total Cash Inflows Divestitures Adj. FCF $1.4B $0.8B $0.6B $0.7B 2018-2021 Total Cash Outflows Acquisitions Net Debt Reduction Dividends B
Slide 16: Albemarle Litigation Settlement
16 Albemarle Litigation Settlement 2021 Huntsman Investor Day Company Overview On October 28, 2021 Huntsman won an arbitration award against Albemarle Corporation for fraud and breach of contract On November 4, 2021 Albemarle agreed to waive its appeal and accelerate full payment of award, paying Hu
Slide 17: On the Horizon for Huntsman
17 Textile Effects Bangladesh completion ~$15M Continued shift towards specialty Global leading solutions provider to sustainability On the Horizon for Huntsman 2021 Huntsman Investor Day Company Overview Polyurethanes Geismar MDI Splitter starting up Q2 2022, ~$45M full run-rate by end of 2023 Cont
Slide 18: Advanced Materials
18 Advanced Materials Scott Wright Division President 2021 Huntsman Investor Day
Slide 19: Robust & Diverse Specialty Materials Portfolio
19 $0 $200 $400 $600 $800 $1,000 $1,200 2017 2018 2019 2020 3Q21 LTM Commodity Specialty Core Specialty Markets Recovering Advanced Materials — Robust & Diverse Specialty Materials Portfolio 2021 Huntsman Investor Day Advanced Materials Specialty Markets Focus(1) Balanced Regional Exposure(1) 12% 17
Slide 20: Primary Growth Levers
20 Primary Growth Levers 2021 Huntsman Investor Day Advanced Materials Integrating M&A & Realizing Synergies .. Acquisition integration on track .. Additional $12M synergies by 2023 .. Solid platform for continued bolt-on M&A Benefitting from Aerospace Recovery .. Passenger travel recovers by 2024
Slide 21: Acquisitions Enhance Specialty Portfolio
21 Acquisitions Enhance Specialty Portfolio Integrating M&A and Realizing Synergies 2021 Huntsman Investor Day Advanced Materials Net M&A Benefit of $57M Adj. EBITDA at <5x multiple Integration and Synergies on Track .. $11M synergy run-rate delivered .. $12M additional synergies by 2023 .. Complem
Slide 22: Benefitting from Aerospace Recovery
22 0 2 4 6 8 10 12 14 16 18 20 2000 2005 2010 2015 2020 2025 2030 2035 2040 Actual Traffic Upside Downside Passenger Travel Recovers from COVID by 2024 Technology Inflection COVID Growth Growth Greater than 15% CAGR through 2025 at >> average Advanced Materials Adj. EBITDA margin Benefitting from Ae
Slide 23: Transformation and Innovation Drive Growth
23 0 20 40 60 80 100 120 2018 2020 2022 2024 2026 2028 2030 ICE Hybrid Electric Electric Vehicle Transformation and Innovation Drive Growth 2021 Huntsman Investor Day Advanced Materials Overview Strong Growth from E-Vehicles Transition Shift to E-Vehicles Requires More Advanced Material Power trains
Slide 24: Infrastructure Investment and Innovation Drive Growth
24 Greater than 6% CAGR through 2025 at average Advanced Materials Adj. EBITDA margin $18B $73B $26B $45B EU USA China India Infrastructure Investment and Innovation Drive Growth Advanced Materials Overview Sustainability: Renewable Energy Grid Build Drives Infrastructure Demand Durability & Effici
Slide 25: Pioneering Step-Out Technology: MIRALON
25 Pioneering Step-Out Technology Advanced Materials Overview 2021 Huntsman Investor Day Problem Oil & gas industry has long-term issue with methane / natural gas Methane has 28x more global warming potential than CO2 MIRALON® Solution, Market Applications & Scale-Up Plan 2010 Technology development
Slide 26: Driving to Deliver Sustainable High-Value Growth
26 Driving to Deliver Sustainable High-Value Growth 2021 Huntsman Investor Day Advanced Materials Overview Strong Specialty Market Position .. Strong position in attractive transforming specialty markets .. Highly qualified applications create cycle robustness .. Aerospace full market recovery by 20
Slide 27: Performance Products
27 Performance Products Chuck Hirsch Division President 2021 Huntsman Investor Day
Slide 28: Simplified Portfolio with Leading Global Positions
28 Simplified Portfolio with Leading Global Positions Performance Products 2021 Huntsman Investor Day Simplified portfolio comprises leading franchises in specialty and differentiated products Leading global positions across Performance Amines Ethylene Propylene Ethylene Oxide Ethylene Glycol Ethano
Slide 29: Business Dynamics
29 Business Dynamics Performance Products 2021 Huntsman Investor Day $1.3B 3Q21 LTM sales revenue $295M 3Q21 LTM Adj. EBITDA ~350 products 10 manufacturing sites ~800 associates 900+ customers 15+ chemical process technologies 6% of sales of products introduced in the last 5 years (1) Represents 3Q2
Slide 30: What is Performance Products?
30 What is Performance Products? Performance Products Amines(1) Maleic Anhydride(1) Strategy Innovate, grow and invest in Performance Amines .. Execute on announced capital projects (E-GRADE®, UPEC, Polyurethane catalysts) .. Demand driven by sustainable solutions for cleaner energy and energy conse
Slide 31: Strategic Focus on Growth Markets in Performance Amines
31 Performance Amines Sales Revenue(1) Strategic Focus on Growth Markets in Performance Amines Performance Products 2021 Huntsman Investor Day .. Focused on specialty and differentiated products into high-growth markets .. Demand driven by sustainable solutions for: • Cleaner energy (wind, clean fue
Slide 32: Sustainability: Core to Our Business
32 ULTRAPURE™ Ethylene Carbonates Gas Treating Wind Carbon Capture Low-Emission Polyurethane Systems Sustainability: Core to Our Business Performance Products 2021 Huntsman Investor Day Focused on bringing sustainable solutions to our customers .. Lithium-ion battery electrolyte solvent .. Only prod
Slide 33: Innovation Underpins Growth in Performance Amines
33 Innovation pipeline of greater than $100M in sales revenue in 2024 (excluding announced capital investments) Innovation Underpins Growth in Performance Amines Performance Products 2021 Huntsman Investor Day .. Higher purity amines for semiconductor manufacturing ⎻ New E-GRADE® Amines — adding E-G
Slide 34: Innovate, Grow & Invest: Semiconductors
34 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Electronics Sales (Net Sales Volume) Innovate, Grow & Invest: Semiconductors Performance Products $400 $600 $800 $1,000 $1,200 2017 2018 2019 2020 2021 2022 2023 2024 2025 USD in Millions E-GRADE® High-Purity Amines Formulated Cleans Market:
Slide 35: Innovate, Grow & Invest: Electric Vehicles
35 Innovate, Grow & Invest: Electric Vehicles (EV) Performance Products 2021 Huntsman Investor Day ULTRAPURE™ Ethylene Carbonate (UPEC) Electrolyte and EV Markets: Driven by Electrification Revolution .. Huntsman produces UPEC, a critical component for lithium- ion batteries ⎻ Only North American ma
Slide 36: Innovate, Grow & Invest: Polyurethane Catalysts
36 Innovate, Grow & Invest: Polyurethane Catalysts Performance Products 2021 Huntsman Investor Day JEFFCAT® Polyurethane Catalysts Polyurethane Catalyst Market: Driven by Megatrends and Sustainability .. Huntsman is a leader in low-emission and conventional catalysts .. Announced expansion at Petfur
Slide 37: Top Priorities to Unlock Value and Reset the Bar
37 Top Priorities to Unlock Value and Reset the Bar Performance Products 2021 Huntsman Investor Day Drive High Degree of Discipline with Focus on Commercial Excellence .. New disciplined management approach .. Focusing resources and building capability, including data analytics .. Implementation of
Slide 38: Sustainability
38 Sustainability Brit Benko Senior Vice President EHS and Manufacturing Excellence and Corporate Sustainability Officer 2021 Huntsman Investor Day
Slide 39: Chemical Industry Emissions: We Are the Catalyst for Sustainability
39 Excludes any role to reduce non-combustion sources Chemical industry makes up ~3% of total emissions… …while providing emission reducing innovations to ~80% of the economy Our Products Enable Sustainability for Our Customers 2021 Huntsman Investor Day Sustainability (1) WRI has Livestock/Manure a
Slide 40: Our Solutions Drive Significant Emission Reductions
40 ~750M tons of lifetime emissions avoided each year by our product solutions Our Solutions Drive Significant Emission Reductions Source: Management estimates assured by a third-party review 2021 Huntsman Investor Day 40 Sustainability
Slide 41: Our Emissions Footprint Continues to Decrease
41 Our Emissions Footprint Continues to Decrease 2021 Huntsman Investor Day Sustainability ENERGY PURCHASES Source: 2021 Sustainability Reports of Huntsman and peers Lower Operational Intensity from Recent Portfolio Moves One of the Lowest Emitters RECENT DIVESTITURES CLOSER TO CUSTOMER On Site Volu
Slide 42: Making Significant Progress on Near-Term Targets
42 Making Significant Progress on Near-Term Targets 2021 Huntsman Investor Day TRIR | TOTAL RECORDABLE INCIDENT RATE 75% Collective Progress to our 2025 Horizon Targets GHG Scope 1 & 2 Energy Consumption Product Safety Summaries Hazardous Waste Disposal Total Waste Disposal Water Usage in Stressed A
Slide 43: Long-Term Objectives for Greater Sustainability
43 Long-Term Objectives for Greater Sustainability Sustainability (1) IEA = International Energy Agency (2) IPCC RCP = United Nations Intergovernmental Panel on Climate Change Representative Concentration Pathway which is a model of greenhouse gas emissions, change in greenhouse gas atmospheric con
Slide 44: Our Solutions Enable Alternative Energy
44 Our Solutions Enable Alternative Energy 2021 Huntsman Investor Day Our specialty amines make the blades of a wind turbine longer, so they are more economic One ton of our Performance Products Polyetheramines go into solutions which… (1) If compared to coal-fired power, estimated emissions avoided
Slide 45: Our Solutions Improve Energy Efficiency
45 Our Solutions Improve Energy Efficiency 2021 Huntsman Investor Day (1) Does not include the benefit from the reduction in materials for maintenance due to panel and rivet replacement Source: Management estimates assured by a third-party review Our resins and hardeners reduce the weight of an airp
Slide 46: Our Solutions Enable Electrification of Transport Sector
46 Our Solutions Enable Electrification of Transport Sector 2021 Huntsman Investor Day (1) Does not include recycling of batteries which would increase the carbon savings and return on invested carbon Source: Management estimates assured by a third-party review Our carbonates improve the efficiency
Slide 47: Our Solutions Improve Efficiency of Homes and Buildings
47 Our Solutions Improve Efficiency of Homes and Buildings 2021 Huntsman Investor Day (1) Most comparisons use 75 years for house life – we used 50 years (2) Does not consider carbon savings from improving house resiliency and lower materials for maintenance; flood approval by FEMA Source: Managemen
Slide 48: Polyurethanes
48 Polyurethanes 2021 Huntsman Investor Day Tony Hankins CEO Asia Pacific | Division President
Slide 49: Strong Business with Profitable Growth Upside
49 Strong Business with Profitable Growth Upside Polyurethanes $4.7B 3Q21 LTM sales revenue $862M 3Q21 LTM Adj. EBITDA ~2,500 products 35 manufacturing sites ~3,300 associates ~5,000 customers 14+ chemical process technologies 20% of sales of products introduced in the last 5 years End Market Breakd
Slide 50: Upvaluing Portfolio to Increase Profitability
50 Upvaluing Portfolio to Increase Profitability Polyurethanes What are we doing differently? Upvaluing Customer Solutions .. Leverage splitter technology for increased product differentiation .. Upvalue earnings on long-term contracts .. Deselect non-strategic markets Boosting Differentiated Platfo
Slide 51: HBS Splitting Technology Drives Upvaluing Potential
51 Polyurethanes 2021 Huntsman Investor Day HBS Splitting Technology drives upvaluing potential Commodity pMDI Commodity Pure MDI Formula pMDI pMDI Based Insulation Systems Adhesives & Coatings Furniture Huntsman Building Solutions Automotive Elastomers Series 1 Stabilize Upvalue Upvalue Upvalue Upv
Slide 52: Splitter is a Catalyst for Differentiated Growth
52 Splitter is a Catalyst for Differentiated Growth Transformation in the Americas (1) Volatile organic compound Polyurethanes Reconfiguring Geismar MDI Facility Pre-Splitter Post-Splitter +40% Di-iso Volume - 30% +50% Upgrading the Product Portfolio, including an increase in VOC(1) free products 20
Slide 53: Significant Upside Potential in the Americas
53 Significant Upside Potential in the Americas Polyurethanes Strategic Focus +50% Volume Uplift +150% Post-Splitter Value Uplift(1) Transformation Drivers Growing and innovating in high value downstream segments and differentiated platforms Upvaluing long-term supply contracts for component busines
Slide 54: Growing Huntsman Building Solutions Globally
54 $0.5B $0.6B $1.3B 0% 20% 40% 60% 80% 100% Asia Europe N. America MW EPS / XPS Fibreglass PU Panel Cellulose SPF Total $8.2B Total $9.5B Total $13.1B Growing Huntsman Building Solutions Globally Polyurethanes 2021 Huntsman Investor Day Post-Acquisition Multiple with Synergies — 2021 7x ~$31B Globa
Slide 55: Strengthening Global Automotive Platform
55 Strengthening Global Automotive Platform 2021 Huntsman Investor Day Polyurethanes 35-Year Track Record of Industry- Leading Technical Expertise Around the World Drivers for EBITDA Growth ~$80M ~$120M ~$165M 2021E 2023 2025 Chips shortage impact Adj. EBITDA 20% CAGR (1) Source:Roland Berger Electr
Slide 56: Scaling Global Elastomers
56 ~$57M ~$85M ~$110M ~$160M 2016 2021E 2023 2025 Scaling Global Elastomers 2021 Huntsman Investor Day Polyurethanes Adj. EBITDA >10% CAGR .. Technology synergies across business .. Seamless connections to global customers Strong Growth Momentum Proven & Effective Strategy High profitability in emer
Slide 57: Upgrading Portfolio Profitability and Cash Generation
57 Upgrading Portfolio Profitability and Cash Generation Polyurethanes Integrate HBS $25M synergies delivered .. G&A consolidation $9M .. Sales force consolidation $6M .. Improved raw materials purchasing $5M .. Consolidated manufacturing sites $3M .. Product rationalization $1M .. Logistics optimiz
Slide 58: MDI Industry Capacity Development
58 1.4 1.5 1.6 3.0 3.2 3.2 5.0 5.4 6.2 2020 2022 2025 Americas Europe Asia MDI Industry Capacity Development Polyurethanes Crude MDI Capacity(1) New Announced Investments 2022 – 2025(2) (‘000s Ktes) Region Country Company Plant Ktes Asia China Wanhua Ningbo +600 Asia China Wanhua Fujian-Connell +400
Slide 59: Strong Business with Profitable Growth Upside
59 Strong Business with Profitable Growth Upside Polyurethanes 2021 Huntsman Investor Day Upvaluing Customer Solutions .. Leverage splitter technology for increased product differentiation .. Shifting low margin volumes to higher EBITDA businesses .. Upvalue earnings on long-term contracts Boosting
Slide 60: Textile Effects
60 Textile Effects Rohit Aggarwal Division President 2021 Huntsman Investor Day
Slide 61: Leading Solutions Provider
61 14% 43% 13% 12% 8% 8% 2% Performance Apparel Casual Formal Home and Hospitality Transportation Specialized Textiles Others Leading Solutions Provider Textile Effects 2021 Huntsman Investor Day $0.8B 3Q21 LTM sales revenue $93M 3Q21 LTM Adj. EBITDA ~1200 products 10 manufacturing sites ~2000 assoc
Slide 62: Our Products Drive Consumer Buying Decisions Everyday
62 Our Products Drive Consumer Buying Decisions Everyday Textile Effects 2021 Huntsman Investor Day Fiber 30% Huntsman 30% Wet Processing 30% Color AVITERA® SE UVITEX® TERASIL® WW 50% water and GHG reduction Long lasting colors Long lasting white Patented wash fast dyes for durable color, wash after
Slide 63: Innovation Fueled by Consumers' Demand for Sustainability and Performance
63 Innovation Fueled by Consumers’ Demand for Sustainability and Performance 2021 Huntsman Investor Day Textile Effects PHOBOTEX® Cleaner C0 chemistry for stain repel and release without compromising the performance Blockbuster Innovation Pipeline AVITERA® ALBAFIX® ULTRATEX® Quantum leap in sustaina
Slide 64: Growth Driven by Sustainability Solutions
64 Growth Driven by Sustainability Solutions Textile Effects During Consumer Experience Lower water & energy consumption during home laundry, and non-iron, easy care, lasting color and stain management During Textile Manufacturing Unique patented technologies for up to 50% water and energy savings E
Slide 65: Transformed Business to Deliver Consistent Long-Term Performance
65 Transformed Business to Deliver Consistent Long-Term Performance Textile Effects 2021 Huntsman Investor Day (1) Exclude Tolling, License Fee and others Volume by Portfolio(1) — CAGR 2011 – 2021 Sales and EBITDA Margin by Portfolio Adj. EBITDA 73 93 150 10% 12% 13% 16% 2016 3Q21 LTM 2022 Est 2025
Slide 66: Strengthen Leadership in Bangladesh with First Mover Advantage
66 Strengthen Leadership in Bangladesh with First Mover Advantage Textile Effects 2021 Huntsman Investor Day 1. Textile Effects is a market leader 2. Bangladesh is the 3rd largest textile producer growing at CAGR +5% 3. Importance of Bangladesh continues as retailers balance supply chain risk 4. No
Slide 67: Key takeaways
67 Key takeaways Textile Effects 2021 Huntsman Investor Day Customer-driven, innovation led .. Experienced technical support providing end to end solutions .. Local sales and technical team with global technical specialists Cash generating and asset light .. Agile, strong working capital discipline
Slide 68: Financial Overview
68 Financial Overview Phil Lister Executive Vice President & Chief Financial Officer 2021 Huntsman Investor Day
Slide 69: An Improved Business Portfolio with Strong Momentum
69 $871 $846 $807 $616 $589 $647 $771 $1,051 $1,234 ~$1,400 13% 12% 12% 10% 10% 11% 12% 15% 16% ~17% 5% 7% 9% 11% 13% 15% 17% 19% - 200 400 600 800 1,000 1,200 1,400 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 2022 Adj. EBITDA Adj. EBITDA Margin Announced Sale of CI&S(1) An Improved Business Portfo
Slide 70: Return to 40%+ FCF Conversion
70 Return to 40%+ FCF Conversion Financial Overview 2021 Huntsman Investor Day 2022 FCF Considerations Reduced Movement in Working Capital ($300M-$350M) impact in 2021 Expect small growth impact 2022 vs 2021 Reduced Capex in 2022 ~$300M annual spend vs ~$350M in 2021 Reduced Cash Interest ~$10M redu
Slide 71: Synergy & Cost Optimization On-Track with More Coming
71 Synergy & Cost Optimization On-Track with More Coming 2021 Huntsman Investor Day Financial Overview 71 In-Progress & Completed Initiatives Site Optimization .. M&A site consolidation ⎻ Icynene: Houston, USA & Canada Polyurethanes Network .. Close production ⎻ Ternate, Italy & Peel, Canada .. Righ
Slide 72: Continuous Cost Management Focus
72 30% 18% 17% 16% 15% 15% 12% 12% 11% 8% 8% 3% 20% 14% 14% 13% 16% 16% 15% 20% 16% 32% 22% 22% 0% 5% 10% 15% 20% 25% 30% 35% 0% 5% 10% 15% 20% 25% 30% 35% 40% Henkel HB Fuller Lanxess Avient Evonik Carlisle BASF Covestro Huntsman Celanese Eastman Dow SG&A as a % of Sales EBITDA Margin Huntsman LTM
Slide 73: Strengthened Balance Sheet and Accelerated Return of Capital
73 Since 2018: Strengthened Our Balance Sheet and Accelerated Return of Capital to Shareholders 2021 Huntsman Investor Day Financial Overview $2.2B $1.0B 2018-2021 Total Cash Inflows Divestitures Adj. FCF $1.4B $0.8B $0.6B $0.7B 2018-2021 Total Cash Outflows Acquisitions Net Debt Reduction Dividends
Slide 74: Our Acquisition Criteria
74 Our Acquisition Criteria Financial Overview 2021 Huntsman Investor Day 2021 Huntsman Investor Day 2021 Huntsman Investor Day 74 What Acquisitions Must Have… Cost Synergies Technology Synergies Scalability and Commercial Expansion Divisional Acquisitions Focus Is… Performance Products Priority is
Slide 75: Reshaping the Portfolio through Acquisitions & Divestitures
75 Reshaping the Portfolio through Acquisitions & Divestitures 2021 Huntsman Investor Day Financial Overview Acquisitions of High Margin and Differentiated Businesses ~$1.4B in Bolt-on Acquisitions since 2018 By 2023, we will have delivered: .. Adj. EBITDA including synergies of >$200M .. >20% Adj.
Slide 76: Disciplined Management of Operating and Fixed Capital
76 19% 18% 16% 15% 15% ~15% 2017 2018 2019 2020 2021 Estimate Target Disciplined Management of Operating and Fixed Capital Financial Overview 2021 Huntsman Investor Day Working Capital Management and Fixed Capital Allocation Underpinning Strong FCF Generation Target of 40%+ Conversion Growth: High R
Slide 77: Capital Allocation Priorities
77 Capital Allocation Priorities Financial Overview 2021 Huntsman Investor Day Free Cash Flow 2021 Huntsman Investor Day 77 Less Dividends Maintain Investment Grade Balance Sheet ~$300M Annual Capex Differentiated Growth, High return projects Bolt-ons Acquisitions in Polyurethanes, Advanced Material
Slide 78: Key Financial Targets
78 Upvalue Portfolio & Continued Margin Expansion Balanced Capital Allocation & Financial Discipline Competitive Dividend & Continuation of Our Share Buyback Program Strong Cash Generation Focus on Shareholder Value Creation A Compelling Investment Opportunity Financial Overview 2021 Huntsman Invest
Slide 79: Q&A Investor Day 2021
79 Q&A Investor Day 2021 79 2021 Huntsman Investor Day
Slide 80: Huntsman: Enriching lives through innovation
HUNTSMAN "|. Enriching lives through innovation Thank you