Eastman Chemical Company · NYSE:EMN
Eastman Chemical — JP Morgan Industrials Conference 2020
9 slides from Eastman Chemical's conference presentation, Mar 10, 2020
Slide 1: JP Morgan Industrials Conference
JP Morgan Industrials Conference Willie McLain, SVP & CFO March 10, 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 and the remarks in the
Slide 3: New Business Revenue from innovation
New Business Revenue from innovation • Approximately $400 million new business revenue from innovation in 2019 • On track to approach $500 million in 2020 • Led by products like Tritan™ copolyester, SAFLEX™ acoustic interlayers, LLUMAR™ paint protection film in Advanced Materials, and NAIA™ cellulos
Slide 4: Building a more capable and efficient organization
Building a more capable and efficient organization • Building our commercial capability (SGA + RD)/REVENUE relative to peers (2018) • Implemented new business operating model • CRM investment • Application development investments accelerating commercialization of innovation programs • Reducing cost
Slide 5: Actions we are taking to improve multi-year performance
Actions we are taking to improve multi-year performance ▪ Leveraging our sites – expected to contribute $30 - $60 million to EBIT over next 3 years ▪ Texas City, TX ▪ St. Gabriel, LA ▪ Additional projects in pipeline ▪ Licensing – expect $25 - $50 million of revenue over next 3 years ▪ Rich portfoli
Slide 6: Strong balance sheet and sufficient liquidity
Strong balance sheet and sufficient liquidity Remain committed to maintaining solid investment-grade credit ratings PUBLIC DEBT MATURITIES 1,000 Delevering is a top priority in 2020 900 Expect to reduce debt by greater than $400 800 million in 2020 700 600 Manageable public debt maturities $ Million
Slide 7: Capital deployment remains disciplined and balanced
Capital deployment remains disciplined and balanced Projected 2020 free cash flow $1.0 billion to $1.1 billion 2019 2019 $370 million $425 million CAPITAL DEBT EXPENDITURES REPAYMENT JOINT CASH TO VENTURES/ OWNERS Share repurchases ACQUISITIONS 2019 Bolt-on acquisitions while remaining disciplined $
Slide 8: Unique innovation-driven growth model delivers consistent, sustainable value
Unique innovation-driven growth model delivers consistent, sustainable value 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 capa
Slide 9: Q&A
Q&A INNOVATION. Then. Now. Next.
Eastman Chemical Company — JP Morgan Industrials Conference 2020 on 6ix