Table of Contents HEXION INC. INDEX 2 Page PART I Item 1 - Business 3 Item 1A - Risk Factors 12 Item 1B - Unresolved Staff Comments 23 Item 2 - Properties 24 Item 3 - Legal Proceedings 25 Item 4 - Mine Safety Disclosures 25 PART II Item 5 - Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 25 Item 6 - Selected Financial Data 26 Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations 27 Item 7A - Quantitative and Qualitative Disclosures About Market Risk 47 Item 8 - Financial Statements and Supplemental Data 49 Consolidated Financial Statements of Hexion Inc. Consolidated Balance Sheets 50 Consolidated Statements of Operations 51 Consolidated Statements of Comprehensive (Loss) Income 52 Consolidated Statements of Cash Flows 53 Consolidated Statements of Changes in Shareholder’s Equity (Deficit) 54 Notes to Consolidated Financial Statements 55 Reports of Independent Registered Public Accounting Firm 106 Financial Statement Schedules: Schedule II – Valuation and Qualifying Accounts 108 Item 9 – Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 108 Item 9A – Controls and Procedures 108 Item 9B – Other Information 108 PART III Item 10 – Directors, Executive Officers and Corporate Governance 109 Item 11 – Executive Compensation 112 Item 12 – Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 130 Item 13 – Certain Relationships and Related Transactions, and Director Independence 132 Item 14 – Principal Accounting Fees and Services 133 PART IV Item 15 – Exhibits and Financial Statement Schedules 134 Item 16 - Form 10-K Summary 142 Signatures 143