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  "documentTitle": "Huntsman Corporation (HUN)",
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  "authorName": "Starboard Value",
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  "presentationDate": "2022-02-28 00:00:00",
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  "notes": "The chart uses a dual-axis style visualization (bar for internal consumption, line for EBITDA margin) to show the stagnation of internal consumption since 2017 and the subsequent decline in margins.",
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      "kind": "callout",
      "text": "Stagnant sales mix in Advanced Materials could be the result of a volume-focused commercial organization.",
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      "text": "Historical % of Base Liquid Resin Consumed Internally vs. Adjusted EBITDA Margin",
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      "text": "BLR is a global commodity with no differentiation and low barriers to entry - in addition, Huntsman is structurally disadvantaged versus competitors because the Company is not backward integrated in its production.\nTo generate value from BLR, Huntsman needs to use BLR to make higher value / higher margin products for customers (e.g. specialty adhesives, metal substitutes, specialty coatings, etc.).\nWe are concerned that the proportion of BLR used internally to make higher margin products has stagnated in recent years, and believe that a volume-focused sales compensation structure may be partially to blame.",
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      "text": "Adjusted EBITDA Margin: 15%",
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      "text": "In Advanced Materials, ~30% of low or negative-margin base liquid resins (“BLR”) continue to be sold to external customers rather than be internally formulated into higher-value downstream products.",
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      "text": "Source: Public company filings.",
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      "kind": "title",
      "text": "We Believe Stagnant Revenue Mix Bolsters Our Hypothesis On Poorly-Designed Sales Incentives (cont'd.)",
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