Eastman Chemical Company · NYSE:EMN
Eastman Chemical — Q1 2021 Earnings Presentation
14 slides from Eastman Chemical's earnings presentation, Apr 30, 2021
Slide 1: First Quarter 2021 Financial Results
First Quarter 2021 Financial Results Mark Costa, Board Chair & CEO Willie McLain, SVP & CFO April 30, 2021 1
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: 1Q 2021 and other recent highlights
1Q 2021 and other recent highlights Strong earnings and record free cash flow in 1Q 2021 Outstanding response to Winter Storm Uri, prioritizing safety of our employees and reliability for our customers Innovation-driven growth model accelerating growth across the company in a recovering global econo
Slide 4: 1Q 2021 financial results – Corporate
1Q 2021 financial results – Corporate $2,409 1Q21 1Q20 $2,241 Year over year 7% change Highlights 2% volume/mix $400 ➢ Strong demand in key $382 3% price end markets including $2.13 $2.03 transportation, consumer 2% currency durables, and building & construction Sales revenue Adjusted EBIT Adjusted
Slide 5: 1Q 2021 financial results – Advanced Materials
1Q 2021 financial results – Advanced Materials $716 1Q21 1Q20 $615 Year over year 1Q21 vs 1Q20 ❖ Double-digit topline growth across 16% change all three businesses 15% $151 volume/mix ❖ Strength in consumer durables, $107 (1)% price transportation, and packaging end markets 2% currency ❖ Robust prod
Slide 6: Eastman circular economy initiatives gaining momentum with specialty plastics customers
Eastman circular economy initiatives gaining momentum with specialty plastics customers ➢ Very strong demand for our RENEW products powered by molecular recycling ➢ Many brands have publicly adopted, with products on the shelves ➢ Robust pipeline for additional announcements throughout the year 6
Slide 7: 1Q 2021 financial results – Additives & Functional Products
1Q 2021 financial results – Additives & Functional Products 1Q21 vs 1Q20 ❖ Recovery in transportation end $871 $822 Year over year 1Q21 1Q20 markets, excluding for aviation fluids 6% change ❖ >20 percent volume / mix growth 3% volume/mix for coatings additives, driven by $137 $149 cellulosic product
Slide 8: Bolt-on acquisition of 3F Feed & Food strengthens animal nutrition business
Bolt-on acquisition of 3F Feed & Food strengthens animal nutrition business Acquisition to drive growth in animal nutrition business ➢ Founded in 2003, based ➢ Expanded specialty in Spain portfolio and application development capabilities ➢ Portfolio of specialized organic acid derivatives ➢ Expect
Slide 9: 1Q 2021 financial results – Fibers
1Q 2021 financial results – Fibers $217 $212 Year over year 1Q21 1Q20 1Q21 vs 1Q20 ❖ Acetate tow volume stable 2% change ❖ Volume / mix higher due to strong growth of textiles products, $53 3% volume/mix $45 including Naia™ and Naia™ Renew (1)% price ❖ Negative EBIT impact from the discontinuation o
Slide 10: Naia™ portfolio gains traction as sustainable biopolymer fiber
Naia™ portfolio gains traction as sustainable biopolymer fiber with fashion brand adoptions across the globe ➢ Renewable wood pulp from sustainably managed, certified forests LOCAL CHINESE BRANDS ➢ Low carbon and water footprint “We selected the Naia™ fabric to Over 260,000 not compromise on the fee
Slide 11: 1Q 2021 financial results – Chemical Intermediates
1Q 2021 financial results – Chemical Intermediates $605 $592 Year over year 1Q21 1Q20 1Q21 vs 1Q20 ❖ Lower volume / mix driven by the discontinuation of certain product lines at our Singapore facility and 2% change Winter Storm Uri (13)% volume/mix $73 $81 ❖ Spreads increased 14% price ❖ Winter Stor
Slide 12: Cash flow and other financial highlights
1Q 2021 cash flow and other financial highlights On track for free cash Expect to Solid Forecasted investment flow to approach repurchase grade credit FY21 adjusted $1.1 billion in ~$350 rating effective tax rate 2021 million 15% to 16% Expect net debt Record first-quarter of shares in 2021 to adjus
Slide 13: 2021 outlook
2021 outlook Growth drivers Near-term uncertainties / headwinds ▪ Sales revenue growth driven by: ▪ Visibility limited due to continued ▪ Benefit of innovation-driven growth model impact of COVID-19 and other enabling growth above end markets macroeconomic uncertainties ▪ Continued recovery in key h
Slide 14: Innovation-driven growth model is paying off
Innovation-driven growth model is paying off 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 culture Aggressive an
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