Eastman Chemical Company · NYSE:EMN
Eastman Chemical — Q2 2022 Earnings Presentation
14 slides from Eastman Chemical's earnings presentation, Jul 28, 2022
Slide 1: 2Q 2022 Financial Results
2Q 2022 Financial Results July 28, 2022 eastman.com
Slide 2: Prepared remarks, Forward-looking statements, Non-GAAP financial measures
Prepared remarks These slides should be reviewed with the accompanying prepared remarks posted on our website. Forward-looking statements During this presentation, we make certain forward-looking statements concerning plans and expectations for Eastman Chemical Company. We caution you that actual ev
Slide 3: 2Q22 highlights
2Q22 highlights • Record revenue and adjusted EPS, despite persistent inflation, logistics constraints, FX headwinds, and an uncertain economic outlook • Innovation delivering growth above underlying end markets • Strong pricing in specialty businesses to recover spreads • Continued validation of Re
Slide 4: Corporate
Corporate $M (except EPS) 2Q22 2Q21 2Q22 vs. 2Q21 highlights Solid demand in medical, personal Revenue 2,784 2,653 care, semiconductors and animal Adjusted EBIT 469 454 nutrition end markets Adjusted EBIT margin 16.8% 17.1% Higher selling prices across all Adjusted EPS 2.83 2.46 operating segments t
Slide 5: Advanced Materials
Advanced Materials $M 2Q22 2Q21 2Q22 vs. 2Q21 highlights Strong demand in consumer durables and medical Revenue 846 769 end markets Adjusted EBIT 158 153 Adjusted EBIT margin 18.7% 19.9% Higher selling prices to recover spreads Revenue change Total Vol/Mix Price FX Significantly higher raw material
Slide 6: Circular solutions platform gaining momentum
Circular solutions platform gaining momentum ▪ Mechanical completion of methanolysis facility expected at the end of 1Q23 ▪ Strong demand for specialty plastics with a sustainable value proposition, >1,000 sales opportunities exceeding the capacity of the facility Tennessee project update ▪ >75% of
Slide 7: Additives & Functional Products
Additives & Functional Products $M 2Q22 2Q21 2Q22 vs. 2Q21 highlights Double-digit volume/mix growth driven by personal care, Revenue 835 655 semiconductors, and animal nutrition end markets Adjusted EBIT 148 111 Lower manufacturing costs and improved product availability in Adjusted EBIT margin 17.
Slide 8: Fibers
Fibers $M 2Q22 2Q21 2Q22 vs. 2Q21 highlights Revenue 242 223 Strong price increases across the segment Adjusted EBIT 37 37 Higher raw material, energy, and distribution costs; higher Adjusted EBIT margin 15.3% 16.6% manufacturing costs Revenue change Total Vol/Mix Price FX 2Q22 vs 2Q21 9% -2% 12% -1
Slide 9: Chemical Intermediates
Chemical Intermediates $M 2Q22 2Q21 2Q22 vs. 2Q21 highlights Revenue up across the segment due to higher selling prices Revenue 861 736 Higher spreads in functional amines and acetyl product lines Adjusted EBIT 155 144 Adjusted EBIT margin 18.0% 19.6% Lower planned manufacturing maintenance costs Re
Slide 10: Cash flow and other financial highlights
Cash flow and other financial highlights On track for strong cash flow Balance sheet and tax rate Well positioned Forecasted FY22 Forecasted FY22 Working capital adjusted effective operating cash flow expected to be a investment-grade tax rate approximately headwind in FY22 balance sheet ~15% $1.5 b
Slide 11: Full-year 2022 guidance
Full-year 2022 guidance Tailwinds Headwinds/Uncertainties Divested EBIT from tire additives and adhesives resins product lines Innovation and market development driving growth above underlying end markets Moderating demand in select end markets, including consumer durables and building and construct
Slide 12: Well positioned to navigate an uncertain global economy
Well positioned to navigate an uncertain global economy Innovation- Circular economy is Strengthening Sustainability and Power of cash driven growth a new vector of execution to convert ESG are integrated flow and the model is significant growth growth to value into how we win balance sheet succeedi
Slide 13: Appendix
Appendix 13
Slide 14: Updated FY2022 underlying assumptions
Updated FY2022 underlying assumptions Modeling items • Interest expense of ~$180M • Depreciation & amortization expense ~$490M • Capital expenditures ~$700M • Expect to deploy strategic cash ~$1.3B through the combination of bolt-on M&A and share repurchases • USD/EURO $1.00 - $1.05 • Pension headwi
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