The Urethane Blog

Huntsman Fights Back Against Starboard

Huntsman Files Investor Presentation Highlighting Successfully Transformed Portfolio, Enhanced Financial Profile and Refreshed Board

Download as PDF March 02, 2022 7:00am EST

Huntsman’s Performance Demonstrates Strength of Strategy and Board Leadership

Urges Shareholders to Vote “FOR ALL” of Huntsman’s Highly Qualified Director Nominees on the WHITE Proxy Card

THE WOODLANDS, Texas, March 2, 2022 /PRNewswire/ — Huntsman Corporation (NYSE: HUN) today announced that it has filed an investor presentation with the U.S. Securities and Exchange Commission in connection with its 2022 Annual Meeting of Stockholders (“Annual Meeting”). The presentation is available at https://voteforhuntsman.com/ or on the investor relations section of the Company’s website.

Highlights of the presentation include:

  • Huntsman has successfully executed a transformational strategy that is delivering superior performance, exceeding expectations and producing a higher margin, differentiated and sustainable portfolio
    • 2021 was the best year in Huntsman’s history with the strongest profit and margin performance it has ever achieved with its current portfolio, demonstrating that the Company’s strategy and execution are working.
    • Anchored portfolio on megatrend-driven, differentiated products demand — addressing customer needs for innovation, sustainability and reduced carbon footprints — and exited volatile commodity businesses by combining large-scale divestitures, including approximately 40% of its portfolio over the last five years, with strategic bolt-on acquisitions.
    • Drove margin improvement across business lines through relentless focus on pricing, cost and prioritizing ‘value over volume’, achieving half of the Company’s $240 million cost optimization and synergy program ahead of schedule.
    • Clear path to deliver more than 300 basis points of incremental adjusted EBITDA margin within the next 36 months, meeting target of 18-20% margins by 2024.
    • Transformed balance sheet created ability to balance growth with capital return through growth investments, accretive M&A, raised dividends and share repurchases.
  • Huntsman has a refreshed and fit-for-purpose Board uniquely qualified to oversee its differentiated and downstream focus and drive further transformation
    • Huntsman completed an extensive Board refreshment plan, appointing eight new independent directors since 2018, and implemented corporate governance enhancements, including the appointment of Cynthia Egan as Non-Executive Vice Chair and Lead Independent Director and new Committee Chairs, all of whom will be women.
    • Led by independent directors with highly relevant experience at global institutions, with the right mix of expertise, experience and diversity to effectively oversee the Company’s transformation.
    • Ensured alignment and accountability through shareholder friendly and peer leading corporate governance profile, including multi-year Board refreshment plan, enhanced shareholder rights, Board-level environmental oversight through the Sustainability Committee and compensation alignment with shareholders.
    • Implemented a multi-year incentive compensation plan to align top 80 leaders with the delivery of 2021 Investor Day targets.
  • Starboard’s campaign is unnecessary, unwise and risks value destruction
    • Starboard has repeatedly endorsed Huntsman’s financial targets, capital allocation and portfolio transformation, demonstrating there is no misalignment with Huntsman’s objectives and strategic initiatives.
    • Starboard’s nominees lack critical expertise, add no incremental value, are not truly independent of Starboard and voting for them would risk losing integral expertise already represented on the Huntsman Board.
    • Starboard destroyed value at GCP Applied Technologies, the only chemicals company whose board Starboard ever controlled, including a series of failed promises and vast underperformance.
    • Huntsman repeatedly attempted to avert Starboard’s pointless proxy fight, despite Starboard’s lack of engagement.

Huntsman shareholders who need assistance in voting their shares may call toll-free Huntsman’s proxy solicitor, Innisfree M&A Incorporated, at (877) 750-0926.

Advisors:

BofA Securities and Moelis & Company LLC are serving as financial advisors to Huntsman. Kirkland & Ellis LLP is serving as legal advisor to Huntsman.

About Huntsman:

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2021 revenues of approximately $8 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company’s website at www.huntsman.com

https://www.huntsman.com/news/media-releases/detail/514/huntsman-files-investor-presentation-highlighting