Huntsman Reports Fourth Quarter and Full Year 2020 Earnings; Strong Recovery with Solid Cash Flow

February 15 (2012

Fourth Quarter Highlights

• Fourth quarter 2020 net income of $360 million compared to net income of $308 million in the prior year period; fourth quarter 2020 diluted earnings per share of $1.54 compared to diluted earnings per share of $1.34 in the prior year period.
• Fourth quarter 2020 adjusted net income of $113 million compared to adjusted net income of $65 million in the prior year period; fourth quarter 2020 adjusted diluted earnings per share of $0.51 compared to adjusted diluted earnings per share of $0.29 in the prior year period.
• Fourth quarter 2020 adjusted EBITDA of $240 million compared to adjusted EBITDA of $182 million in the prior year period.
• Fourth quarter 2020 net cash provided by operating activities from continuing operations was $167 million. Free cash flow from continuing operations was $88 million for the fourth quarter 2020 and adjusted free cash flow from continuing operations was $157 million.
• Balance sheet remains strong with a net leverage of 0.8x and total liquidity is approximately $3 billion. On January 15, 2021 we redeemed in full €445 million (approximately $541 million) in aggregate principle amount of our 5.125% senior notes due 2021 at par from available cash.
• Completed the sale of Venator Materials PLC ordinary shares to funds advised by SK Capital on December 23, 2020. Together with estimated cash tax savings of approximately $150 million, which this transaction facilitated, secured aggregate total cash benefit of approximately $250 million.
• Declared the acquisition of Gabriel Performance Products within our Advanced Materials segment for $250 million on December 7, 2020, which was completed on January 15, 2021.
• In our Company wide optimization efforts, we are now targeting annualized savings and acquisition integration synergies in excess of $120 million, to be achieved by mid-2023. $27 million of targeted annualized savings achieved in 2020.

Advanced Material Segment Analysis for 4Q20 Compared to 4Q19

The decrease in revenues in our Advanced Materials segment for the three months ended December 31, 2020 compared to the same period in 2019 was primarily due to lower sales volumes, predominantly due to weakness in our aerospace and commodity markets. Sales volumes decreased across most markets primarily due to economic slowdown and customer destocking. Segment adjusted EBITDA decreased due to lower sales volumes, partially offset by lower fixed costs. The adjusted EBITDA contribution from our recent acquisition of CVC Thermoset Specialties was offset by the lost adjusted EBITDA from the divestiture of our India-based DIY consumer adhesives business.

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