preliminary summary discussion materials prepared for the

The Special Committee of the IAC Board of Directors

October 10th, 2018

Preliminary Summary Discussion Materials Prepared for

Private & Confidential

Team Michael & Nima

MICHAEL CHONG NIMA KARAMLOUThird-year FMS Third-year ECON

Company Overview

Industry Overview

Valuation Strategic Options AppendixInvestment

Thesis

Agenda

1. Company Overview

2. Investment Thesis

3. Industry Overview

4. Valuation

5. Strategic Options

6. Appendix

3

Valuation AppendixCompany Overview

Industry Overview

Strategic OptionsInvestment

Thesis

-20.00%

30.00%

80.00%

130.00%

180.00%

230.00%

280.00%

Annotated Stock Chart

May 2014• Announced Proposed Merger with Clariant

August 2014• HUN spins off Pigments & Add. Business

Annotated Stock Chart

Huntsman Stock Price Performance Since 2015 Slowdown

Oct-15 Apr-16 OCT-16 Apr-17 OCT-17 Apr-18 Oct-18

Comparable Companies: BAS, 1COV, DWDP, LYB, BAYN, AKZA, CLN, ASH, LXS, OLN, EVK

Huntsman Corporation (HUN)

S&P 500 Index

6/30/2018:FQ2 Results: Revenue beat ($2.4B vs. $2.2B) by 7.2% despite being down 8.1% Y/Y. EPS beat by $0.17 and was up 18.8% Y/Y



12/31/2016:FQ4 Results: Revenue beat ($2.4B vs. $2.3B) by 6.2% and was up 2.7% Y/Y. EPS beat by $0.06, but was down 41.2% Y/Y

12/31/2015:FQ4 Results: Revenue missed($2.3B vs. $2.4B) by 4.6% and was down 20.9% Y/Y. EPS beat by $0.30 and was up 54.5% Y/Y

Oct 2017• Clariant abandons merger with Huntsman

Aug 2017• VNTR IPOs for $454MM

4


Industry Overview


Thesis

Huntsman Portfolio Composition%

To

tal

2019

E EB

ITD

A

Huntsman’s four main business segments

59% 22% 14% 6%

Polyurethanes Performance Products Textile EffectsAdvanced Material

2018E Rev. Growth2018E Rev. Growth 2018E Rev. Growth 2018E Rev. Growth

MDI – based polyurethanes used to produce insulation, seating foam, furniture, and foot wear products etc.

Chemicals for cleaning, dispersing, emulsifying, and curing.

Technologically advanced epoxy, acrylic and polyurethanes-based polymer products are replacing materials in aircraft.

Provide textile dyes and chemicals and digital inks that enhance color and improve performance.

Detergents and soaps, oil and gas production, gas treating, coating, and epoxy curing.

11%14% 7% 5%

Description

End Markets

Coatings, construction materials, circuit boards and sports equipment.

Wrinkle resistance, longer lasting fabrics, faster drying properties and the ability to repel water and stains.

Energy-saving insulation, comfort foam for automotive seating, bedding and furniture, coatings, elastomers for footwear.

5


Industry Overview


Thesis

2020 Plan: Unique Platform for Quality Earnings Expansion

1.5x GDP Derivatives

Volume Growth

>420mm EBITDA ~9% CAGR

High teens EBITDA Margins

~60% Free Cash Flow Conversion

Robust innovative pipeline leading to significant downstream growth

Sustainable EBITDA growth underpinned by macro trends

Poised to deliver >10% EBITDA growth in derivatives

PolyurethanesHigh growth through downstream substitution

Performance ProductsMargin expansion and growth through downstream derivatization

Advanced MaterialsGrowth and consistent margins in specialty effects

Textile EffectsConsistent growth through sustainable solutions

2x GDP Growth>$1B EBITDA >10% CAGR

~20% EBITDA Margins

>70% Free Cash Flow conversion

MDI Urethanes strategically aligned with growth megatrends

Huntsman sharply focused on growing its differentiated business

MDI conditions favorable for foreseeable future

2x GDP Specialty Revenue Growth

>270mm EBITDA (~7% CAGR)

>22% EBITDA Margins


Highly qualified applications create robustness in portfolio

Healthy innovation pipeline and platform for bolt-on acquisitions

Sustainable >20% EBITDA margin

2x GDP Growth>$110mm

EBITDA >10% CAGR

Mid-teens EBITDA Margins


Leader in environmental solutions driving growth

Margin expansion through Specialty and Differentiated growth

Innovation driven, asset light and cash generating

6


Industry Overview


Thesis

MDI Industry Demand Remains Strong ~2x GDP

MDI Industry Size (millions of tones)Long-Term Growth Drivers

Mobility

Food Preservation

Energy Management

Population Growth

2.8

4

5.1

6.7

9.1

2002 2007 2012 2017 2022E

2017-2022 ProjectionsDemand Growth 6%-7% CAGR

PolyurethanesBridging 2017 to 2020E EBITDA

~10% EBITDA CAGR

Continued focus on downstream growth aligned with macro trends – 2x GDP volume growth in MDI

Assumes no remaining MDI short-term margin spikes

Assumes no new M&A and upside from MTBE

2020 outlook includes a major PO/MTBE turnaround

17% Base

EBITDA Margin

~20% EBITDA Margin

$1,120mm

7


Industry Overview


Thesis

Long-Term Growth Drivers

Agriculture

Oil Field

Marine

Automotive fluids

Performance ProductsBridging 2017 to 2020E EBITDA

~9% EBITDA CAGR

Macro trends in key markets –2.0x GDP volume growth in key

markets

Strong Innovation pipeline

Downstream derivatization of low cost intermediates

Assumes no new M&A

Margin expansion and growth through downstream derivatization

~14% EBITDA Margin

~15% EBITDA Margin

High Teens

EBITDA Margin

$412mm

8


Industry Overview


Thesis


Aircraft Build

Electrical Demand

Construction Additives

Automotive Composites

Growth and consistent margins in specialty effects

Advanced MaterialBridging 2017 to 2020E EBITDA

~7% EBITDA CAGR

Focus on specialty applications –2x GDP volume growth

Targeted innovation for customer solutions

Assumes no new M&A

>22% EBITDA Margin

21% EBITDA Margin

$272mm

9


Industry Overview


Thesis


Active Wear

Home & Furnishings

Formal Wear

Footwear

Textile EffectsBridging 2017 to 2020E EBITDA

>10% EBITDA CAGR

Alignment with key macro trends

Growth in specialty & differentiated products

Margin expansion

Assumes no new M&A

Mid Teens

EBITDA Margin

11% EBITDA Margin

$114mm

Driving Strong Demand for Sustainability Solutions

Increased regulatory enforcement- New Chinese Environmental Protection Tax

effective 1/1/18- Vietnam implementing stricter regulations

Brand driven requirements and demands- Brands demand products with clean

chemistries- Water scarcity mentioned as the most

serious environmental challenge facing the global textile industry

Increased NGO pressure/activism- Detox committed companies now represent

15% of worldwide textile production

10

Consistent growth through sustainable solutions


Industry Overview


Thesis

Comparison of Financial Forecast Cases

FY2018E

Revenue ($ Millions)

FY2020E

Revenue ($ Millions)

EBITDA ($ Millions) EBITDA ($ Millions)

EPS ($/Share) EPS ($/Share)

$9,183

$9,276 $9,257

$9,296

$9,229

Street Consensus UCSB Base UCSB 25% UCSB 75% 2020 Plan

$1,521 $1,546

$1,406

$1,686

$1,534


$1,625 $1,738

$1,370

$1,787 $1,682


$3.47 $2.86

$2.38

$3.34 $3.17


$3.90

$5.48

$4.03

$7.09

$4.69


$9,747

$10,225

$9,842

$10,709

$10,000


11


Industry Overview


Thesis

61.6%

32.9%

153.3%

8.0%

16.8%

93.1%

9.5%

63.3%

48.1%

7.9x

18.9x

10.0x

5.3x

12.2x9.3x 8.6x

6.5x5.1x 4.2x

19.0x

6.6x 6.5x

9.8x

21.0x 20.5x

9.4x

17.9x15.4x

13.7x

9.4x7.6x 7.5x

28.7x

10.7x

7.4x

Eastman ChemicalCompany

(NYSE:EMN)

Platform SpecialtyProducts

Corporation(NYSE:PAH)

Ashland GlobalHoldings Inc.(NYSE:ASH)

Olin Corporation(NYSE:OLN)

RPM InternationalInc. (NYSE:RPM)

Clariant AG(SWX:CLN)

DowDuPont Inc.(NYSE:DWDP)

LyondellBasellIndustries N.V.

(NYSE:LYB)

Wanhua ChemicalGroup Co., Ltd.(SHSE:600309)

Covestro AG(DB:1COV)

Akzo Nobel N.V.(ENXTAM:AKZA)

BASF SE (DB:BAS) HuntsmanCorporation(NYSE:HUN)

NTM EV/Forward EBITDA NTM Forward P/E

Huntsman Peer Group Valuation

Street Has Not Appreciated HUN Story

5.0x

10.0x

15.0x

Jan-2016 Jul-2016 Jan-2017 Jul-2017 Jan-2018 Jul-2018

CompsHUNS&P 500

Valuation Disconnect Has Widened Total Shareholder Return

S&P 500

41.2%

-11.2%

20.8%

69.4%

Public Market Perception

15


Industry Overview


Thesis

- Stable cash flows throughout justify increased valuation; company’s high cost of capital contributes to meaningful share price discount- Company should consider altering their capital structure to bring down WACC and drive ~$2.51/share in incremental value

Illustrative Discount Cash Flow Analysis

Illustrative Status Quo Financial Analysis

FY2017 FY2018 FY2019 FY2020 FY2021

Revenue 8,358 9,276 9,770 10,225 10,662

% Growth 11% 11% 5% 5% 4%

Adj. EBITDA 1,259 1,546 1,249 1,394 1,537

% Margin 15% 17% 13% 14% 14%

Unlevered FCF $912 $1,181 $606 $939 $954

10% 13% 6% 9% 9% 13%

$32.59 6.5x 7.5x 8.5x

13.1% $31.60 $35.49 $39.38

16.1% $29.08 $32.59 $36.09

19.1% $26.87 $30.04 $33.20

Implied Share Price

EBITDA Exit MultipleIllustrative Discount Rate

13


Industry Overview


Thesis

Intrinsic Valuation Implies ~26% Upside In Next 12 Months

Key Valuation Assumptions And Implied Share Price

Sum of the Parts Discounted Cash Flow

Polyurethanes

Performance Products

Textile Effects

Advanced Material

WACC

Enterprise Value/ EBITDA Exit Multiple

26.2%Implied Upside Or $32.59 Implied

Share Price

42.1%Implied Upside Or $37.29 Implied

Share Price

2019E EBITDA Multiple

$984

$388

$252

$106

6.7x

8.8x

6.3x

5.0x

13.1%

7.5x

12


Industry Overview


Thesis

The New HUN is Unappreciated

Conclusion Target Price: $34.94

Current Price: $25.83

35% Implied Upside In Next 12 Months

Polyurethanes and Performance product contributing 10% and 9% EBITDA CAGR Growth respectively….

Advanced Material and Textile Effects contributing 7% and 10% EBITDA CAGR Growth respectively….

With 50-50 sum of parts and DCF valuation, base case projecting an implied upside of 35% growth

Implied Upside: 35.3%

$15 $20 $25 $30 $35 $40 $45 $50 $55 $60

52 Week Trading Range

Street Consensus

Discount Cash Flow

NTM EV/EBITDA Status Quo

NTM EV/EBITDA Textile Spin-Off

2019E P/E w/ Leveraged Buyback

2019E P/E w/ VNTR Spin-Off

Blended PT: $34.93Current Share Price: $25.83

14


Industry Overview


Thesis

Huntsman Corp.

Status QuoTake-Private

Leveraged BuyoutSeparation of Textile

EffectsReturn of Capital to

Shareholders

Leveraged Share Repurchase

Venator SpinOff & Share Repurchase

A B C

Huntsman Has a Number of Ways to Drive Value for Shareholders

Dividend Recap.

16


Industry Overview


Thesis

2.8x

6.1x

3.8x

3.0x 3.0x

1.9x1.6x

0.8x 0.9x

0.2x

3.2x

1.0x

1.5x

Eastman ChemicalCompany

(NYSE:EMN)

Platform SpecialtyProducts

Corporation(NYSE:PAH)

Ashland GlobalHoldings Inc.(NYSE:ASH)

Olin Corporation(NYSE:OLN)

RPM InternationalInc. (NYSE:RPM)

Clariant AG(SWX:CLN)

DowDuPont Inc.(NYSE:DWDP)

LyondellBasellIndustries N.V.

(NYSE:LYB)

Wanhua ChemicalGroup Co., Ltd.(SHSE:600309)

Covestro AG(DB:1COV)

Akzo Nobel N.V.(ENXTAM:AKZA)

BASF SE (DB:BAS) HuntsmanCorporation(NYSE:HUN)

Mean LTM Net Debt/ EBITDA

Illustrative Credit AnalysisS&P Credit

Rating

LTM Net

Debt/EBITDA

Wanhua Chemical Group Co., Ltd. (SHSE:600309) BBB- 6.1x

LyondellBasell Industries N.V. (NYSE:LYB) BBB+ 3.8x

BASF SE (DB:BAS) A 3.0x

Celanese Corporation (NYSE:CE) - 3.0x

RPM International Inc. (NYSE:RPM) BBB 1.9x

Platform Specialty Products Corporation (NYSE:PAH) BB- 1.6x

DowDuPont Inc. (NYSE:DWDP) - 0.8x

Clariant AG (SWX:CLN) BBB- 0.9x

Ashland Global Holdings Inc. (NYSE:ASH) BB 0.2x

Olin Corporation (NYSE:OLN) BB+ 3.2x

Eastman Chemical Company (NYSE:EMN) BBB 1.0x

Huntsman Corporation (NYSE:HUN) BB+ 1.5x

Substantial room to lever up

Illustrative Uses for Leverage

Huntsman has Superior Balance Sheet Optionality

- Return of Capital to Shareholders (Leveraged Buyback, Dividend Recapitalization)- Sponsor Led Go Private Leveraged Buyout

17


Industry Overview


Thesis

Leveraged Buyout Transaction Structure

Sponsor HoldCo.

Huntsman OpCo.

Sponsor GP

HUN Family

TextileSpinCo

Divestiture Proceeds

Legacy Noteholders

VNTR

Key Transaction Assumptions

20% Implied Premium

SpinOff VNTR Stake

Textile SpinOff at 5.0x NTM EBITDA

2023 Exit Target

New LBO Debt Holders

18


Industry Overview


Thesis

Target Cash $397 4%

Assumed Target Debt (Less Textile & VNTR SpinCo) 1,324 14%

New Term Loan A 1,264 14%

New Term Loan B 1,264 14%

New Euro-Denominated Leveraged Loan 1,264 14%

New 2035 Unsecured Note 1,070 12%

Total New Debt $4,863 53%

Management Roll-Over 1,496 16%

Sponsor Equity 1,122 12%

Total Illustrative Sources $9,202 100%

Illustrative Sources % of Total

Equity Purchase Price $7,481 81%

Refi. Target Debt 1,324 14%

Total Purchase Price Excl. Cash $8,805 96%

Advisory Fees 150 2%

Consulting/ Legal 150 2%

Financing Fees 97 1%

Total Illustrative Uses $9,202 100%

% of TotalIllustrative Uses

Illustrative Transaction Considerations

62% 6.4x 6.9x 7.4x 7.9x 8.4x

$28.41 10.0% 58.7% 63.3% 67.6% 71.6% 75.3%

$29.70 15.0% 55.5% 60.3% 64.6% 68.6% 72.4%

$31.00 20.0% 52.5% 57.3% 61.7% 65.7% 69.5%

$32.29 25.0% 49.5% 54.4% 58.8% 62.9% 66.8%

$33.58 30.0% 46.6% 51.5% 56.1% 60.2% 64.1%

% Implied Premium

NTM EV/EBITDA Exit Multiple

Base Case Sponsor IRR

Illustrative Returns Analysis

50% 6.4x 6.9x 7.4x 7.9x 8.4x

$28.41 10.0% 47.7% 52.0% 56.0% 59.7% 63.2%

$29.70 15.0% 44.7% 49.1% 53.2% 56.9% 60.4%

$31.00 20.0% 41.9% 46.4% 50.5% 54.2% 57.8%

$32.29 25.0% 39.1% 43.7% 47.8% 51.6% 55.2%

$33.58 30.0% 36.4% 41.0% 45.2% 49.1% 52.7%

% Implied Premium

NTM EV/EBITDA Exit Multiple

Base Case Management IRR

Illustrative Leveraged Buyout Analysis

19


Industry Overview


Thesis

Divestiture of Textile Effects Unit

FY2019E EBITDA $106

FY2019E EBITDA Multiple 5.0x

FY2019E Enterprise Value $532

FY2019E Status Quo EBITDA 1,571

FY2019E Pro Forma EBITDA 1,465

6.5x 7.3x

Pro Forma Enterprise Value 9,520 10,627

(-) Net Debt 1,626 1,626

Pro Forma Share Price $37.91 $43.22

Illust. FY2019 EV/EBITDA Multiple

Illustrative Textile Effects Business Divestiture

Key Considerations

Textile Effects Exit Multiple

4.5x 5.0x 5.5x 6.5x

6.5x $37.7 $37.9 $38.2 $38.7

7.3x $43.0 $43.2 $43.5 $44.0HUN 2019E EV/EBITDA

Textile Effects Financials Summary

Huntsman Income Statement Impact

- Textile Effects Unit fits oddly within the broader portfolio- A divestiture could provide HUN with significant rerating opp.

Scenario Analysis

FY2017 FY2018 FY2019 FY2020 FY2021

Revenue 776 818 850 880 908

% Growth 3% 5% 4% 3% 3%

Adj. EBITDA 83 96 106 114 118

% Margin 11% 12% 13% 13% 13%

Free Cash Flow $37 $46 $53 $60 $65

% Conversion 45.0% 47.5% 50.0% 52.5% 55.0%

Notes: Assumes Share Buyback, no premium on Textile Effects Unit23 % Tax Rate

FY2017 FY2018 FY2019 FY2020 FY2021

Revenue 7,582 8,459 8,919 9,345 9,753

% Growth 12% 12% 5% 5% 4%

Adj. EBITDA 1,176 1,449 1,142 1,279 1,418

% Margin 16% 17% 13% 14% 15%

Adj. Diluted EPS $2.03 $2.68 $4.60 $5.75 $6.57

% Accretion (Dilution) -6.1% 3.5% 5.0% 8.2%

20


Industry Overview


Thesis

Net Debt Proceeds for Repurchase $989

Purchase Price (@ 10% Premium) $28.41

% of Current Shares Purchased 15.4%

Pro Rata Value per Share $4.36

FY2019E Status Quo EPS $4.45

FY 2019E Pro Forma EPS $4.88

% EPS Accretion/ (Dilution) 9.8%

5.8x 6.8x


PF Value of Retained Shares $24.00 $28.88

Illustrative $1 Billion Leveraged Share Repurchase

Illustrative FY2019 P/E Multiple

VNTR Proceeds, Net of taxes $442

Purchase Price (@ 10% Premium) $28.41

% of Current Shares Purchased 6.9%

Pro Rata Value per Share $1.95



% EPS Accretion/ (Dilution) 8.1%

5.8x 6.8x


PF Value of Retained Shares $25.97 $30.77

Illustrative $450 Million Venator Spin-off Repurchase


Return of Capital to Shareholders

Net Debt Proceeds for Dividend $989

Basic Shares Outstanding 222

Dividend per Share $4.46



% EPS Accretion/ (Dilution) -4.3%

5.8x 6.8x


Per share Dividend $4.46 $4.46

Illustrated $1 Billion Dividend Recapitalization


Net Proceeds from Sale of Textile Effects Unit $409

Net Debt Paydown (50% of Proceeds) 205

Cash Financed Dividend (50% of Proceeds) 205

Dividend per Share $1.01



% EPS Accretion/ (Dilution) -4.2%

5.8x 6.8x


Per share Dividend $0.92 $0.92


Illustrative Textile Divestiture & Cash Dividend

21


Industry Overview


Thesis

This Slide is Intentionally Left Blank

preliminary summary discussion materials prepared for the

Documents