Eastman Chemical Company · NYSE:EMN

Eastman Chemical — Q1 2022 Earnings Presentation

14 slides from Eastman Chemical's earnings presentation, Apr 28, 2022

  1. Slide 1: 1Q 2022 Financial Results

    1Q 2022 Financial Results April 28, 2022 eastman.com

  2. 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

  3. Slide 3: 1Q22 highlights

    1Q22 highlights • Strong commercial execution, including aggressive pricing to offset inflation • Cross-functional collaboration by the Eastman team to safely return to normal operations and limit customer impact after the Kingsport steam line incident • Innovation-driven growth model delivering win

  4. Slide 4: Corporate

    Corporate $M (except EPS) 1Q22 1Q21 1Q22 vs. 1Q21 highlights Continued strong demand in durables, building & Revenue 2,714 2,409 construction, medical, and animal nutrition end Adjusted EBIT 366 400 markets Adjusted EBIT margin 13.5% 16.6% Higher selling prices across all operating Adjusted EPS 2.06

  5. Slide 5: Advanced Materials

    Advanced Materials $M 1Q22 1Q21 1Q22 vs. 1Q21 highlights Strong demand in durables and medical end markets Revenue 737 716 Estimated $100 million financial impact from Kingsport steam line Adjusted EBIT 62 151 incident included in Advanced Materials results Adjusted EBIT margin 8.4% 21.1% Higher sel

  6. Slide 6: Recent progress validates Eastman's strategy for building a Circular Solutions Platform

    Recent progress validates Eastman’s strategy for building a Circular Solutions Platform • High confidence in feedstock strategy as team secures new streams ▪ >75% of annual requirement is already being procured, under contract or in active negotiation Tennessee ▪ Continued great progress validating

  7. Slide 7: Additives & Functional Products

    Additives & Functional Products $M 1Q22 1Q21 1Q22 vs. 1Q21 highlights Double-digit volume/mix growth driven by building & construction Revenue 805 609 personal care, and animal nutrition end markets Adjusted EBIT 145 107 Aggressive price increases to keep up with inflation Adjusted EBIT margin 18.0%

  8. Slide 8: Fibers

    Fibers $M 1Q22 1Q21 1Q22 vs. 1Q21 highlights Strong price increases across the segment Revenue 213 217 Adjusted EBIT 24 45 ~$15 million of lower sales volume and higher operating costs resulting from the Kingsport steam line incident and Adjusted EBIT margin 11.3% 20.7% the Russia/Ukraine conflict R

  9. Slide 9: Chemical Intermediates

    Chemical Intermediates $M 1Q22 1Q21 1Q22 vs. 1Q21 highlights Revenue 799 605 Revenue up across the segment due to higher selling prices Adjusted EBIT 135 73 Significantly higher spreads driven by strong commodity Adjusted EBIT margin 16.9% 12.1% market conditions Strong demand in the agriculture end

  10. Slide 10: 1Q cash flow and other financial highlights

    1Q cash flow and other financial highlights On track for strong cash flow Balance sheet and tax rate Solid investment- Forecasted FY22 Forecasted FY22 Working to mitigate adjusted effective operating cash flow grade balance sheet impact of increasing tax rate approaching working capital with ~$500 m

  11. Slide 11: Full-year 2022 guidance

    Full-year 2022 guidance Tailwinds Headwinds/Uncertainties Strong underlying demand growth with low supply Divested EBIT from tire additives and adhesives resins chain inventories product lines Innovation and market development driving growth Expected normalization of spreads in Chemical above underl

  12. Slide 12: Five key themes underpinning our building momentum

    Five key themes underpinning our building momentum 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 succeeding 12

  13. Slide 13: Appendix

    Appendix 13

  14. Slide 14: Updated FY2022 underlying assumptions

    Updated FY2022 underlying assumptions Modeling items • Interest expense of ~$190M • Depreciation & amortization expense ~$490M • Capital expenditures ~$700M • Expect to deploy strategic cash ~$1.4B through the combination of bolt-on M&A and share repurchases • USD/EURO ~$1.10 • Pension headwind of ~

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