ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾

1. GENERAL

DEFINITIONS

ÌýÌýÌýÌýÌýÌýÌýÌýFor convenience in this report, the terms "Company," "our" or "we" may be used to refer to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation and, unless the context otherwise requires, its subsidiaries and predecessors. Any references to our "Company" "we" "us" or "our" as of a date prior to OctoberÌý19, 2004 (the date of our Company's formation) are to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Holdings,ÌýLLC and its subsidiaries (including their respective predecessors). In this report, "ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International" refers to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ InternationalÌýLLC (our 100% owned subsidiary) and, unless the context otherwise requires, its subsidiaries; "AAC" refers to Arabian Amines Company, our consolidated manufacturing joint venture with the Zamil Group; "HPS" refers to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Polyurethanes ShanghaiÌýLtd. (our consolidated splitting joint venture with Shanghai Chlor-Alkali Chemical Company,ÌýLtd); "Sasol-ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾" refers to Sasol-ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ÌýGmbH andÌýCo. KG (our consolidated joint venture with Sasol that owns and operates a maleic anhydride facility in Moers, Germany); and "SLIC" refers to Shanghai Liengheng Isocyanate Company (our unconsolidated manufacturing joint venture with BASF and three Chinese chemical companies).

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.

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 dye 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. ÀÖÌìÌÃfun88(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 100% owned subsidiary. ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International is a Delaware limited liability company and was formed in 1999.

RECENT DEVELOPMENTS

ÌýÌýÌýÌýÌýÌýÌýÌýOn JanuaryÌý30, 2017, our titanium dioxide manufacturing facility in Pori, Finland experienced fire damage and is currently not operational. The fire brigade responded quickly to extinguish the fire and there were no injuries. We have notified applicable customers and suppliers of thisÌýforce majeureÌýevent. We do not currently have an estimated time frame for how long the facility will be off line, but we are committed to repairing the facility as quickly as possible. The Pori facility has a nameplate capacity of 130,000 metric tons, which represents approximately 15% of our total titanium dioxide capacity and approximately 10% of total European titanium dioxide demand. The site is insured for property damage as well as business interruption losses. According to our insurance policies, the respective retention levels (deductibles) for physical damage and business interruption are $15Ìýmillion and 60Ìýdays, respectively. On FebruaryÌý9, 2017, we received a â‚�50Ìýmillion (approximately $52 million) payment from our insurer as an initial partial progress payment towards the overall pending claim.

ÌýÌýÌýÌýÌýÌýÌýÌýOn OctoberÌý28, 2016, we filed an initial FormÌý10 registration statement with the SEC as part of the process to spin off our Pigments and Additives and Textile Effects businesses in a tax-free transaction. On JanuaryÌý17, 2017, we announced that we will retain our Textile Effects business and we amended the FormÌý10 registration statement. For further information, see "NoteÌý4. Separation of Pigments and Additives Business."

ÌýÌýÌýÌýÌýÌýÌýÌýOn DecemberÌý30, 2016, our Performance Products segment completed the sale of its European surfactants business to InnospecÌýInc. for $199Ìýmillion in cash plus our retention of trade receivables and payables for an enterprise value of $225Ìýmillion. For further information, see "NoteÌý3. Business Combinations and Dispositions—Sale of European Surfactants Manufacturing Facilities."

ÌýÌýÌýÌýÌýÌýÌýÌýOn DecemberÌý30, 2016, we made an early repayment of $260Ìýmillion on our 2015 Extended Term LoanÌýB using proceeds from the sale of the European surfactants business and existing cash. For further information, see "NoteÌý15. Direct and Subsidiary Debt—Senior Credit Facilities."

HUNTSMAN CORPORATION AND HUNTSMAN INTERNATIONAL FINANCIAL STATEMENTS

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

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