Eastman Chemical Company · NYSE:EMN
Eastman Chemical — Q2 2021 Earnings Presentation
13 slides from Eastman Chemical's earnings presentation, Aug 2, 2021
Slide 1: Second-Quarter 2021 Financial Results
Second-Quarter 2021 Financial Results Mark Costa, Board Chair & CEO Willie McLain, SVP & CFO August 2, 2021 1
Slide 2: Prepared Remarks
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: Recent highlights
Recent highlights Outstanding execution across the portfolio, delivering record revenue and adjusted EPS; strong first-half 2021 free cash flow despite increase in working capital New Business Revenue from innovation ahead of expectations, on track for approximately $600 million in 2021 Progress on
Slide 4: 2Q 2021 financial results – Corporate
2Q 2021 financial results – Corporate Highlights $2,653 Sequential 2Q21 1Q21 ➢ Strong sequential growth $2,409 in revenue and earnings $454 driven by continued $400 10% change $2.46 improvement in the global 2% volume/mix $2.13 economy and our innovation-driven growth 8% price model Sales revenue Ad
Slide 5: 2Q 2021 financial results – Advanced Materials
2Q 2021 financial results – Advanced Materials Sequential 2Q21 1Q21 $769 $716 Highlights $153 $151 ➢ Specialty plastics 8% change continues to 5% volume/mix outperform underlying end markets 3% price ➢ Higher logistics costs Sales revenue Adjusted EBIT and supply chain constraints negatively $769 2Q
Slide 6: New in Q2
Ahead of schedule with customer volume commitments for methanolysis molecular recycling facility New in Q2 6 • Supply agreement to accelerate circular transformation • P&G will use Eastman Renew materials in products and packaging • Collaborate on initiatives addressing infrastructure needs required
Slide 7: 2Q 2021 financial results – Additives & Functional Products
2Q 2021 financial results – Additives & Functional Products $925 Sequential 2Q21 1Q21 Highlights $871 ➢ Strong underlying $132 $137 demand led by 6% change building & 6% price construction end markets ➢ Higher sequential costs due to planned Sales revenue Adjusted EBIT manufacturing $925 maintenance
Slide 8: 2Q 2021 financial results – Fibers
2Q 2021 financial results – Fibers Sequential $223 $217 2Q21 1Q21 Highlights ➢ Sequentially, higher 3% change $45 manufacturing $37 3% volume/mix maintenance shutdown costs offset increased volume / mix Sales revenue EBIT $223 $211 Year over year 2Q21 2Q20 ➢ Higher year-over-year volume in textiles
Slide 9: 2Q 2021 financial results – Chemical Intermediates
2Q 2021 financial results – Chemical Intermediates $736 Sequential 2Q21 1Q21 $605 Highlights ➢ Excellent execution to 22% change $144 deliver record earnings 3% volume/mix in historically tight $73 market conditions 19% price Sales revenue Adjusted EBIT ➢ Spreads increased significantly both $736 Ye
Slide 10: 1H 2021 cash flow and other financial highlights
1H 2021 cash flow and other financial highlights On track for free cash flow greater than $328 million Cash and strong balance sheet Forecasted FY21 adjusted $1.1 billion in returned to providing effective tax stockholders in 1H21 significant rate 2021 strategic 15% to 16% flexibility First half fre
Slide 11: 2021 outlook
2021 outlook Growth drivers Near-term uncertainties and headwinds ▪ Sales revenue growth driven by: ▪ Supply chain disruptions, logistics ▪ Benefit of innovation-driven growth model constraints enabling growth above end markets ▪ Automotive OEM demand related ▪ Expect continued recovery in key high-
Slide 12: Well-positioned for strong EPS and FCF growth in 2022
Well-positioned for strong EPS and FCF growth in 2022 Growth drivers Headwinds ▪ End markets expected to continue recovering ▪ Chemical Intermediates spreads expected to ▪ Especially transportation, building & normalize construction, and aviation ▪ Increased growth spending ▪ New Business Revenue gr
Slide 13: Eastman people at the heart of our innovation-driven growth model
Eastman people at the heart of our innovation-driven growth model 13
Eastman Chemical Company — Q2 2021 Earnings Presentation on 6ix