Materials Yao-Yu Liu

Overview

Overview

Overview Materials vs S&P 500 YTD

Recommendation Stock Current Price Target Price Weight Rebalance Mosaic Co. (MOS) $23.76 $26.60 1.75% -1.00% HOLD/SELL Crown Holdings Inc. (CCK) $59.76 $70.85 1.48% -0.48% Huntsman Corp. (HUN) $30.98 $42.24 0% +1.25% BUY 3.00% Keep S&P Weight

Mosaic International leader in producing and marketing concentrated phosphate and potash Products include fertilizers and other finished phosphate products 3 Segments: Phosphates, Potash, and International Distribution

Mosaic Drivers Successful integration into emerging markets Weak dollar Increased demand due to steady population growth

Mosaic Risks Instability of currencies in emerging markets Strong dollar Decrease in commodities prices Government regulation (environmental)

Mosaic Relative Valuation

Mosaic Target Price Discount Rate: 11% Growth Rate: 4.5% Current Price: $23.76 Upside Potential: 12%

Crown Holdings Inc. Global leader in design, manufacturer, and sale of packaging products Products include steel and aluminum cans for food 3 Areas of Operation: Asia Pacific, Americas, and Europe

Crown Holdings Inc. Drivers Development of new facilities Steady demand Presence in emerging markets strong

Crown Holdings Inc. Risks Exchange rate exposure high High debt of $7.1B compared to revenue of $8B Increase in commodities prices

Crown Holdings Inc. Relative Valuation

Crown Holdings Inc. Target Price Discount Rate: 11% Growth Rate: 4% Current Price: $59.76 Upside Potential: 18.60%

Huntsman Corp. Multinational manufacturer of differentiated organic and inorganic chemical products. Products include adhesives and polyurethanes 4 Segments: Performance Products, Advanced Materials, Textile Effects, and Polyurethanes.

Huntsman Corp. Drivers Increased growth and demand for Polyurethane segment Advanced materials growing rapidly due to advancements in tech Reduction in its debt holdings 3.4x to 2.2x (Debt/EBITDA 2016 to 2017)

Huntsman Corp. Risks Cyclical nature makes it dependent on global economic conditions Government regulation (environmental) Exchange rate risk

Huntsman Corp. Relative Valuation

Huntsman Corp. Target Price Discount Rate: 11% Growth Rate: 4% Current Price: $30.97 Upside Potential: 36%

Mosaic Co. DCF Source: Analyst DCF

Crown Holdings Inc. DCF Source: Analyst DCF

Source: Bloomberg XLTP DCF Huntsman Corp. DCF Source: Bloomberg XLTP DCF

Overview Q & A