Eastman Chemical Company · NYSE:EMN
Eastman Chemical — Q3 2020 Earnings Presentation
13 slides from Eastman Chemical's earnings presentation, Oct 29, 2020
Slide 1: Third-Quarter 2020 Financial Results
Third-Quarter 2020 Financial Results Mark Costa, Board Chair & CEO Willie McLain, SVP & CFO October 29, 2020
Slide 2: Prepared Remarks; Forward-looking statements; GAAP and 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: Third-quarter 2020 highlights
Third-quarter 2020 highlights First nine months free cash flow at record levels Strong sequential earnings increase driven by innovation and end-market diversification Focused execution on controllable items including cost reductions and technology licensing Innovation driving several wins across ou
Slide 4: Architectural coatings and performance films
Architectural coatings • Low odor, low-emissive specialty products well-positioned to meet do-it-yourself demand growth in 2020 • Significant investment in application development capabilities focused on long-term macro trends • Consumer sensitivity about indoor air quality serving as ongoing growth
Slide 5: 3Q 2020 financial results – Corporate
3Q 2020 financial results – Corporate Sequential $2,325 Year over year 3Q20 2Q20 3Q20 3Q19 $2,122 ($ in millions, $2,122 ($ in millions, $1,924 except EPS) except EPS) $369 $310 (9)% $310 10% change $1.94 change $1.57 (5)% volume/mix effect 10% volume/mix effect $195 (5)% price effect $1.57 (1)% pri
Slide 6: 3Q 2020 financial results – Advanced Materials
3Q 2020 financial results – Advanced Materials Sequential Year over year 3Q20 2Q20 3Q20 3Q19 $ in millions $668 $697 $ in millions $668 $567 $159 $139 $139 18% (4)% change change 18% volume/mix effect (2)% volume/mix effect (1)% price effect (3)% price effect 1% FX effect $64 1% FX effect Sales reve
Slide 7: 3Q 2020 financial results – Additives & Functional Products
3Q 2020 financial results – Additives & Functional Products Sequential Year over year $742 3Q20 2Q20 $832 3Q20 3Q19 $685 $ in millions $742 $ in millions $144 $109 (11)% $109 8% change change (8)% volume/mix effect 8% volume/mix effect (1)% price effect $72 (4)% price effect 1% FX effect 1% FX effec
Slide 8: 3Q 2020 financial results – Chemical Intermediates
3Q 2020 financial results – Chemical Intermediates Sequential Year over year 3Q20 2Q20 3Q20 3Q19 $506 $ in millions $579 $ in millions $461 $506 $34 $32 10% (13)% change $32 change 8% volume/mix effect (5)% volume/mix effect 2% price effect (8)% price effect $22 Sales revenue Adjusted EBIT Sales rev
Slide 9: 3Q 2020 financial results – Fibers
3Q 2020 financial results – Fibers Sequential Year over year 3Q20 2Q20 3Q20 3Q19 $211 $ in millions $217 $ in millions $206 $206 $51 $46 $41 $41 (5)% (3)% change change (3)% volume/mix effect (3)% volume/mix effect (2)% price effect Sales revenue Adjusted EBIT Sales revenue Adjusted EBIT 9
Slide 10: First nine months 2020 cash flow and other financial highlights
First nine months 2020 cash flow and other financial highlights $1.05 Returned On track to use 9M 2020 billion $269 greater than effective tax rate million $600 ~15.5% million cash from operations to stockholders $771 by dividends of free cash flow for net million debt reduction Free cash flow $363
Slide 11: End markets are recovering
End markets are recovering Volume (kg) change by month (2020 vs 2019) ▪ Volume increased 9% in 3Q20 30% vs. 2Q20 20% ▪ Strong 75% recovery in ‘most impacted’ 10% end markets led by auto 0% -10% ▪ 35% increase in ‘mixed impact over time’ end markets with strong building and -20% construction growth -
Slide 12: 2020 outlook
2020 outlook ▪ Eastman team doing an outstanding job navigating a challenging global business environment ▪ Volume / mix improvement approaching 2019 levels in fourth quarter ▪ Solid recovery in certain end markets: auto, tires, building & construction, consumer durables ▪ Overall visibility remains
Slide 13: Innovation-driven growth model enabling superior performance
Innovation-driven growth model enabling superior performance World-Class Differentiated Relentlessly Technology Application Engage Platforms Development the Market Significant integration and scale enable innovation, reliability and cost advantage Advantaged growth and execution capability and cultu
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