1. Materials
Yao-Yu Liu

2. Overview

3. Overview

4. Overview
Materials vs S&P 500 YTD

5. 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

6. 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

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

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

9. Mosaic
Relative Valuation

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

11. 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

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

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

14. Crown Holdings Inc.
Relative Valuation

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

16. 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.

17. 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)

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

19. Huntsman Corp.
Relative Valuation

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

21. Mosaic Co. DCF
Source: Analyst DCF

22. Crown Holdings Inc. DCF
Source: Analyst DCF

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

24. Overview
Q & A