{ "docId": "019dd923-622c-750b-8b9d-1b44c5356381", "docSlug": "40ee9cb99aa1", "documentTitle": "Huntsman Corporation (HUN)", "authorId": "03_Starboard_Value", "authorName": "Starboard Value", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2022-03-02 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 87, "pageCount": 90, "prevPage": 86, "nextPage": 88, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 0, "notes": "The slide uses quotes to establish a baseline for peer comparison, likely to contrast with current management behavior or valuation.", "elementsJson": [ "headline_text", "paragraph", "callout_box", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9d-1b44c5356381/87", "deckHref": "/decks/019dd923-622c-750b-8b9d-1b44c5356381", "deckJsonHref": "/decks/019dd923-622c-750b-8b9d-1b44c5356381.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9d-1b44c5356381#slide-87", "components": [ { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.22 }, "kind": "callout", "text": "Examples of Management References to Celanese, Dow, Eastman as Huntsman's Main Comparables", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ba0e54fc-d4d7-4d3d-931c-cd3fa7c376bd", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "Management has historically referred to Celanese, Dow, and Eastman as its primary peers.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-fb94-7034-9dd1-4d268e392284", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.3 }, "kind": "quote", "text": "Well, listen, I think you're going to see our valuations and a rerating of our multiple move up without this volatility. I think actually, in a funny way, you're going to see rerating of multiples for TiO2. We're concentrating at 1 or 2 turns higher than Huntsman is. And Huntsman pure play comps like Celanese, Eastman, Dow are 1.5 turns higher than we are. I think you're going to see multiple expansion on both sides.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "32c550fe-411d-47e1-8883-143a264dcf91", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.65 }, "kind": "quote", "text": "I think if anything, perhaps we've been looked at as a large TiO2 company with a bunch of other chemicals off to the side. I think that when you look at the quality of our business, particularly in those non-TiO2, we believe that we deserve a multiple that would be akin to a Celanese, an Eastman, a Dow Chemical, some of our traditional peers.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3f9abfdd-29df-4754-b0d7-6f4fcd58d7de", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.5 }, "kind": "quote", "text": "We think we look at it and awful lot like a Dow and Eastman and the Celanese and I'd encourage you to look at the quality of the business as you heard today relative to their portfolio.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a221aa58-5d04-4bcd-9d6f-af23301ff520", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"Well, listen, I think you're going to see our valuations and a rerating of our multiple move up without this volatility. I think actually, in a funny way, you're going to see rerating of multiples for TiO2. We're concentrating at 1 or 2 turns higher than Huntsman is. And Huntsman pure play comps like Celanese, Eastman, Dow are 1.5 turns higher than we are. I think you're going to see multiple expansion on both sides.\" — Kimo Esplin, Former CFO, May 2017; \"We think we look at it and awful lot like a Dow and Eastman and the Celanese and I'd encourage you to look at the quality of the business as you heard today relative to their portfolio.\" — Kimo Esplin, Former CFO, March 2016; \"I think if anything, perhaps we've been looked at as a large TiO2 company with a bunch of other chemicals off to the side. I think that when you look at the quality of our business, particularly in those non-TiO2, we believe that we deserve a multiple that would be akin to a Celanese, an Eastman, a Dow Chemical, some of our traditional peers.\" — Peter Huntsman, President & CEO, December 2013", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-fb94-7034-9dd1-53f1e4fbf2d6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.5, "x": 0.05, "y": 0.95 }, "kind": "source-note", "text": "Source: Public company filings and transcripts. Note: Quotes are underlined and bolded for emphasis.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "08958368-eca6-4f4a-8019-363cf0d5d165", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.15 }, "kind": "subtitle", "text": "Over the years, on multiple occasions, management has also referred to Celanese, Dow, and Eastman as the most comparable companies to Huntsman.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "56b70585-7d56-410d-a144-e4634aceaee3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.85 }, "kind": "title", "text": "Management has historically referred to Celanese, Dow, and Eastman as its primary peers.", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7b184977-0d31-438a-ba3e-279dcdff6f75", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.05 }, "kind": "title", "text": "Management Has Made Reference to the Primary Peers as Being Most Comparable to Huntsman on Multiple Occasions", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ed91c487-7b9f-4b25-a904-e1d90cedb91f", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "authority-citation", "slug": null, "matchId": "c97b7d10-6135-4b16-82ad-76c1278ae776", "evidence": "Uses executive quotes to establish peer group credibility", "confidence": 0.9 } ], "arcBeats": [], "loops": [ { "to": 90, "from": 3, "name": "Aha Moment", "slug": "03-aha-moment", "bestFor": "Data-heavy sections, research findings, analytical arguments", "matchId": "6400df9c-7000-46ee-ad3c-c2ae51fd8f33", "evidence": "The document builds a case against Huntsman's management and governance.", "position": 0, "objective": "Reveal Huntsman's poor performance and governance", "structure": "The Problem/Question -> What the Data Shows -> The Insight", "confidence": 0.7, "description": "Establish a tension, present data, then deliver the insight that changes everything" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }