{
  "docId": "019dd923-622c-750b-8b9c-e7508bf92a94",
  "docSlug": "84e240d51920",
  "documentTitle": "Huntsman Corporation (HUN)",
  "authorId": "03_Starboard_Value",
  "authorName": "Starboard Value",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2022-02-28 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 222,
  "pageCount": 238,
  "prevPage": 221,
  "nextPage": 223,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 4,
  "notes": "Uses a process flow diagram to illustrate the pricing discrepancy between a vertically integrated producer and a non-integrated competitor.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "bullet_list",
    "process_diagram",
    "photo",
    "callout_box"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9c-e7508bf92a94/222",
  "deckHref": "/decks/019dd923-622c-750b-8b9c-e7508bf92a94",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9c-e7508bf92a94.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9c-e7508bf92a94#slide-222",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "In this illustrative example, Huntsman may be underpricing its product by ~30% given its competitor needs to price at $100 per unit to earn the same minimum required contribution margin",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-14db-7299-bdef-ff153e1f0dca",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.42,
        "w": 0.92,
        "x": 0.04,
        "y": 0.45
      },
      "kind": "diagram",
      "text": "Illustrative Example Highlighting Product Mispricing Due to Measuring Integrated Margin",
      "attrs": null,
      "subkind": "process",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "009bc878-6ec8-4727-9688-4202590b5077",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.92,
        "x": 0.04,
        "y": 0.25
      },
      "kind": "list",
      "text": "Integrated margin is when a vertically-integrated manufacturer uses its upstream cost-to-produce as the COGS for its downstream business when measuring profitability of its downstream business.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b9577964-85a7-4bb6-ad9e-20954fe7155a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.92,
        "x": 0.04,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "Based on our conversations with management, we believe the Company measures profitability in its downstream polyurethanes business on an integrated basis, which may lead to suboptimal pricing and flawed organic investment decisions.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a2fc171a-26fd-4eb0-b8f3-839758bcf687",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.5,
        "x": 0.01,
        "y": 0.96
      },
      "kind": "source-note",
      "text": "Source: Public company filings, presentations, and transcripts, interviews with industry experts, Starboard analysis and estimates.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c96f59f4-5096-4e3c-a505-7ca705e3b611",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.92,
        "x": 0.04,
        "y": 0.89
      },
      "kind": "title",
      "text": "We believe Polyurethanes may be mispricing its downstream products by measuring integrated margins.",
      "attrs": null,
      "subkind": "action-title",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "54b49dd3-3d25-4e90-9e8b-cce1f7e228b2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.92,
        "x": 0.04,
        "y": 0.03
      },
      "kind": "title",
      "text": "We Also Believe Profitability May Be Impacted by the Company’s Insistence on Measuring Integrated Margins",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1191921b-71c5-4f85-af92-face9f13c061",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "causal-chain",
      "slug": null,
      "matchId": "58931009-f1f1-4296-aa6a-42e1197010e4",
      "evidence": "Explains how integrated margin accounting leads to mispricing and flawed investment decisions.",
      "confidence": 0.8
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}