HexionAcquisitionJuly07Final

  • 370 views
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
370
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
9
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Hexion & Huntsman: Creating a Global Leader July 12, 2007
  • 2. Forward-Looking Statements Certain information in this presentation may be considered forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. This information is based on the Company's current expectations and actual results could vary materially depending on risks and uncertainties that may affect the Company's operations, markets, services, prices and other factors as discussed in filings with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, industry and economic conditions, competitive, legal, governmental and technological factors. There is no assurance that the Company's expectations will be realized. The Company assumes no obligation to update any forward-looking information contained in this presentation should circumstances change, except as otherwise required by securities and other applicable laws. This presentation contains non-GAAP financial measures. A reconciliation to the nearest U.S. GAAP financial measures is included at the end of the presentation. 2
  • 3. Transaction Overview Craig O. Morrison Chairman, President & Chief Executive Officer
  • 4. Acquisition Overview Hexion and Huntsman have reached a definitive agreement for Hexion to acquire Huntsman Corporation (NYSE: HUN) for $28.00 in cash for each outstanding Huntsman share of common stock All-cash transaction valued at approximately $10.6 billion, including the assumption of debt Closing subject to Huntsman shareholder approval and regulatory approvals Upon closing, the merged companies will form a global leader in specialty chemicals 4
  • 5. Strategic Rationale for the Combination The combination will create one of world’s largest specialty chemical companies Annualized sales of more than $14 billion More than 21,000 associates 180 facilities globally Strong global positions with significant scale and market leadership Expanded portfolio of leading products and technologies Unmatched geographic reach with ability to serve global customers in all parts of the world 5
  • 6. Hexion Business Snapshot 2006 Revenues = $ 5.2 billion Revenue by Region Revenue by Segment FFP North 27% America EPRD RoW 52% 41% 14% C&I Perf Prods 24% EMEA 8% 34% Main Segments & Product Lines: Epoxy and Phenolic Resins (EPRD) – Epoxy Resins and Intermediates, Composite Resins, Molding Compounds, Phenolic Specialty Resins, Epoxy Coating Resins and Versatic Acids and Derivatives Formaldehyde and Forest Product Resins (FFP) – Formaldehyde Based Resins and Intermediates, Forest Product Resins and Formaldehyde Applications Coating & Inks (C&I) – Polyester Resins, Alkyd Resins, Acrylic Resins, Ink Resins and Additives Performance Products (Perf Prods) – Phenolic Encapsulated Substrates, Foundry Resins 6
  • 7. Huntsman Business Snapshot 1 2006 Revenues = $8.8 billion Revenue by Region Revenue by Segment North Urethanes America 39% 38% Textile Effects 11% RoW Advanced M aterials 24% Pigments & Inks 15% 12% EMEA Performance 38% Products 23% Main Segments & Product Lines: Urethanes – MDI, PO/MTBE Advanced Materials – Epoxy resins, cross-linkers, curing agents Performance Products – Surfactants, LAB, amines, maleic anhydride, EO Textile Effects – Textile dyes, processing and finishing chemicals Pigments – TiO2 7 •Pro forma for announced but not completed divestitures, and Textile Effects acquisition.
  • 8. Hexion & Huntsman Will Form A Powerful Company 2006 Revenues = $ 14.0 billion Revenue by Region Main Segments & Product Lines Urethanes – MDI, PO/MTBE Epoxy Resins – Epoxy resins, cross-linkers, curing North agents, versatics America Performance Products – Surfactants, LAB, amines, 43% maleic anhydride, EO, EG RoW Pigments & Inks– TiO2,, ink and adhesive resins 20% Coatings – Alkyd, saturated & unsaturated polyester resins and acrylic dispersions Formaldehyde Thermosets – Formaldehyde, amino, EMEA phenolic & novolac resins 37% Textile Effects – Textile dyes, processing and finishing chemicals 8
  • 9. Combination Creates a Powerful Global Footprint (1) (1) 2006 PF Differentiated Revenue Distribution. Source of Huntsman map: February 2007 Analyst Day Presentation. Proforma 2006 revenues to include Polyurethanes, Advanced Materials, Textile Effects, Performance Products and Pigments 9
  • 10. Next Steps The transaction is subject to Huntsman stockholder approval and regulatory approvals Financial commitments are in place that provide ample liquidity to close the acquisition pending necessary shareholder approval and other conditions Huntsman & Hexion will continue to operate as separate companies and competitors until closing Integration teams will be formed at the appropriate time composed of Huntsman & Hexion associates to plan how we will merge our organizations Information will be shared as we move through the planning process We are excited about the opportunities our combined company will provide as a global leader in specialty chemicals 10