Eastman Chemical Company · NYSE:EMN
Eastman Chemical — Q1 2020 Earnings Presentation
11 slides from Eastman Chemical's earnings presentation, May 1, 2020
Slide 1: First-Quarter 2020 Financial Results
First-Quarter 2020 Financial Results Mark Costa, Board Chair & CEO Willie McLain, SVP & CFO May 1, 2020
Slide 2: Forward-looking statements; GAAP and Non-GAAP financial measures
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 events or results may differ materially from our plans and expectations. See these slides, the accompanying prepa
Slide 3: Thanks for being here
Our heartfelt thanks go to: • Healthcare workers and first Thanks responders • Our customers for being • Our suppliers • Everyone who is working to keep us here. safe and healthy …and to the global Eastman team for continuing to enhance the quality of life in a material way 3
Slide 4: Update on current state of Eastman response to COVID-19
Update on current state of Eastman response to COVID-19 Ensure employee wellness Immediate actions to further strengthen balance sheet Moved quickly to implement processes Current cash balance $850 million with further access to our revolver; manageable and procedures to protect employees debt matur
Slide 5: Eastman products are essential for our everyday lives and the fight against COVID-19
Eastman products are essential for our everyday lives and the fight against COVID-19 Personal care, home Medical Consumables Food, Feed & Ag care & water treatment Metam DMAPA PETG Adhesives soil fumigant soaps and face shields sanitizers and protective resins Thiram barriers diapers fungicide CCC g
Slide 6: Proven innovation-driven growth model: The heart of how we win
Proven innovation-driven growth model: The heart of how we win During pandemic, Eastman’s strengths have never been clearer: • Long track record of managing our portfolio resulting in stronger enterprise to face current challenges • Strong cash flow, solid balance sheet, significant sources of liqui
Slide 7: 1Q 2020 financial results Corporate
1Q 2020 financial results Corporate ▪ Outstanding results in challenging environment $2,380 ▪ Sales volume modestly increased 1Q20 1Q19 $2,241 • Growth in personal care & wellness, water treatment, ($ in millions, architectural coatings, agriculture, and consumables $382 except EPS) end markets $352
Slide 8: Strong balance sheet and a focus on maximizing cash
Strong balance sheet and a focus on maximizing cash Took actions to further strengthen balance sheet Maximizing cash generation is top financial out of an abundance of caution priority in 2020 Free cash flow positive in first quarter, Current cash balance $850 million an excellent start to the year
Slide 9: Diverse end markets mitigate impact of COVID-19
Diverse end markets mitigate impact of COVID-19 Resilient Most impacted • Consumables • Transportation • Medical and pharma (autos, tires, aviation) • Food, feed, & agriculture • Textiles • Personal care & wellness • Energy ▪ Currently expecting 2Q to be weakest • Water treatment • Tobacco 25% quart
Slide 10: Reducing 2020 costs by ~$150 million in response to financial impact of COVID-19
Reducing 2020 costs by ~$150 million in response to financial impact of COVID-19 Adjusted operations to end-market demand for Eastman products Significantly reduced discretionary spending • Travel & entertainment, professional fees, and other external services Deferring some turnarounds to protect e
Slide 11: Well-positioned to manage in an uncertain environment
Well-positioned to manage in an uncertain environment ▪ Benefit from diverse end markets and innovation that leverages strong customer engagement ▪ Cost actions accelerated to ~$150 million, net of inflation ▪ Working capital expected to be source of >$250 million of cash flow beyond previous expect
Eastman Chemical Company — Q1 2020 Earnings Presentation on 6ix