ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾

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1. GENERAL

CERTAIN DEFINITIONS

ÌýÌýÌýÌýÌýÌýÌýÌýFor convenience in this report, the terms "Company," "our," "us" or "we" may be used to refer to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation and, unless the context otherwise requires, its subsidiaries and predecessors. In this report, "ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International" refers to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ InternationalÌýLLC (our wholly-owned subsidiary) and, unless the context otherwise requires, its subsidiaries.

ÌýÌýÌýÌýÌýÌýÌýÌýIn this report, we may use, without definition, the common names of competitors or other industry participants. We may also use the common names or abbreviations for certain chemicals or products.

INTERIM FINANCIAL STATEMENTS

ÌýÌýÌýÌýÌýÌýÌýÌýOur unaudited interim condensed consolidated financial statements and ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International's unaudited interim condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP" or "U.S.ÌýGAAP") and in management's opinion reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of results of operations, comprehensive income, financial position and cash flows for the periods presented. Results for interim periods are not necessarily indicative of those to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes to consolidated financial statements included in the Annual Report on FormÌý10-K for the year ended DecemberÌý31, 2015 for our Company and ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International.

DESCRIPTION OF BUSINESS

ÌýÌýÌýÌýÌýÌýÌýÌýWe are a global manufacturer of differentiated organic chemical products and of inorganic chemical products. Our products comprise a broad range of chemicals and formulations, which we market globally to a diversified group of consumer and industrial customers. Our products are used in a wide range of applications, including those in the adhesives, aerospace, automotive, construction products, personal care and hygiene, durable and non-durable consumer products, digital inks, electronics, medical, packaging, paints and coatings, power generation, refining, synthetic fiber, textile chemicals and dyes industries. We are a leading global producer in many of our key product lines, including MDI, amines, surfactants, maleic anhydride, epoxy-based polymer formulations, textile chemicals, dyes, titanium dioxide and color pigments.

ÌýÌýÌýÌýÌýÌýÌýÌýWe operate in five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects, and Pigments and Additives. Our Polyurethanes, Performance Products, Advanced Materials and Textile Effects segments produce differentiated organic chemical products and our Pigments and Additives segment produces inorganic chemical products. In a series of transactions beginning in 2006, we sold or shutdown substantially all of our Australian styrenics operations and our North American polymers and base chemicals operations. We report the results of these businesses as discontinued operations.

COMPANY

ÌýÌýÌýÌýÌýÌýÌýÌýOur Company, a Delaware corporation, was formed in 2004 to hold the ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ businesses. JonÌýM.ÌýÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ founded the predecessor to our Company in 1970 as a small packaging company. Since then, we have grown through a series of acquisitions and now own a global portfolio of businesses.

ÌýÌýÌýÌýÌýÌýÌýÌýCurrently, we operate all of our businesses through ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International, our wholly-owned subsidiary. ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International is a Delaware limited liability company and was formed in 1999.

HUNTSMAN CORPORATION AND HUNTSMAN INTERNATIONAL FINANCIAL STATEMENTS

ÌýÌýÌýÌýÌýÌýÌýÌýExcept where otherwise indicated, these notes relate to the condensed consolidated financial statements for both our Company and ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International. The differences between our financial statements and ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International's financial statements relate primarily to the following:

PRINCIPLES OF CONSOLIDATION

ÌýÌýÌýÌýÌýÌýÌýÌýOur condensed consolidated financial statements include the accounts of our wholly-owned and majority-owned subsidiaries and any variable interest entities for which we are the primary beneficiary. Intercompany accounts and transactions have been eliminated.

RECENT DEVELOPMENTS

Separation of our Pigments and Additives and Textile Effects Businesses

ÌýÌýÌýÌýÌýÌýÌýÌýIn connection with our previously announced plans to separate our Pigments and Additives and Textile Effects businesses through a U.S. tax-free spin-off to our stockholders, on OctoberÌý28, 2016, ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Spin Corporation ("SpinCo") filed an initial registration statement on FormÌý10 with the U.S. Securities and Exchange Commission ("SEC"). Subject to market conditions, we expect the spin-off to be completed in the first half of 2017.

Sale of European Surfactants Manufacturing Facilities

ÌýÌýÌýÌýÌýÌýÌýÌýOn AugustÌý3, 2016, we announced that InnospecÌýInc. ("Innospec") had committed to purchase our European surfactants business for an enterprise value of $225Ìýmillion pursuant to the terms of an Exclusivity and Put Option Agreement under which we could, by notice to Innospec, exercise an option to enter into an agreed form Share and Asset Purchase Agreement (the "SAPA") with Innospec. We have provided that notice and as of OctoberÌý25, 2016, we and Innospec have each signed the SAPA and an amendment thereto. Under the terms of the transaction, Innospec will acquire our manufacturing facilities located in Saint-Mihiel, France; Castiglione delle Stiviere, Italy; and Barcelona, Spain. The $225Ìýmillion enterprise value includes our related trade receivables and payables, which we will retain. The purchase price will be subject to additional working capital and other adjustments. Closing is expected to occur by the end of the fourth quarter of 2016 and is subject to customary conditions. We expect to use the net proceeds from the sale to repay debt. The assets and liabilities of this business are included in our Performance Products segment and are classified as held for sale on the accompanying balance sheets.

ÌýÌýÌýÌýÌýÌýÌýÌýUpon consummating the planned transaction, we will enter into supply and long-term tolling arrangements with Innospec in order to continue marketing certain core products strategic to our global agrochemicals, lubes and certain other businesses.

USE OF ESTIMATES

ÌýÌýÌýÌýÌýÌýÌýÌýThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.