Eastman Chemical Company · NYSE:EMN
Eastman Chemical — Q3 2021 Earnings Presentation
12 slides from Eastman Chemical's earnings presentation, Oct 28, 2021
Slide 1: Third-Quarter 2021 Financial Results
Third-Quarter 2021 Financial Results Mark Costa, Board Chair & CEO Willie McLain, SVP & CFO October 28, 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: Recent highlights
Recent highlights Strong execution to maintain third-quarter EPS at second-quarter levels despite headwinds from logistics & raw material cost inflation and auto OEM component shortages Eastman ranked No. 21 in Fortune Magazine’s 2021 Change the World list for its leadership in the circular economy
Slide 4: 3Q 2021 financial results – Corporate
3Q 2021 financial results – Corporate $2,720 Sequential 3Q21 2Q21 $2,653 Highlights $445 $454 3% change ➢ Stable sequential earnings $2.46 $2.46 despite significant cost (1)% volume/mix inflation 4% price Sales revenue Adjusted EBIT Adjusted EPS ➢ Record quarterly revenue $2,720 Year over year 3Q21
Slide 5: 3Q 2021 financial results – Advanced Materials
3Q 2021 financial results – Advanced Materials Sequential Highlights $770 $769 3Q21 2Q21 ➢ Strong demand in medical, consumer $153 durables, and electronics 0% change $128 end markets (1)% volume/mix ➢ Automotive OEM 1% price component shortage negatively impacted demand in the third Sales revenue A
Slide 6: 3Q 2021 financial results – Additives & Functional Products
3Q 2021 financial results – Additives & Functional Products Sequential 3Q21 2Q21 $997 Highlights $925 $161 8% change $132 ➢ Strong sequential selling price increase 2% volume/mix led by coatings and 7% price care additives (1)% FX Sales revenue Adjusted EBIT ➢ Sequential volume increase led by care
Slide 7: 3Q 2021 financial results – Fibers
3Q 2021 financial results – Fibers Sequential $222 $223 3Q21 2Q21 Highlights ➢ Sequential increase of 0% change $37 $32 variable costs impacted (2)% volume/mix results 2% price ➢ Revenue stable Sales revenue Adjusted EBIT sequentially as textiles delivered mid single-digit $222 Year over year 3Q21 3
Slide 8: 3Q 2021 financial results – Chemical Intermediates
3Q 2021 financial results – Chemical Intermediates $731 $736 Sequential 3Q21 2Q21 $144 Highlights $132 ➢ Continued strong end (1)% change market demand and tight (5)% volume/mix commodity markets 4% price Sales revenue Adjusted EBIT ➢ Higher raw material and energy costs sequentially $731 Year over
Slide 9: 2021 cash flow and balance sheet highlights
2021 cash flow and balance sheet highlights On track to Cash and strong Forecasted repurchase First nine months free cash flow $874 balance sheet FY21 adjusted million ~$400 million providing effective tax significant rate of shares in FY21 from strategic ~15% free cash flow flexibility Taking actio
Slide 10: 2021 outlook
2021 outlook Growth drivers Near-term uncertainties and headwinds ▪ Sales revenue growth driven by: ▪ Automotive OEM component ▪ Benefit of innovation-driven growth model shortages enabling growth above end markets ▪ Supply chain disruptions, logistics ▪ Expect continued recovery in key high- constr
Slide 11: Well-positioned for strong adjusted 2022 EPS growth vs 2021
Well-positioned for strong adjusted 2022 EPS growth vs 2021 $9.50 - $10.00 $8.80 to $9.00 Key assumptions ➢ 4% global GDP growth ➢ Innovation enabling growth above underlying end markets ➢ Raw material, energy, and distribution costs modestly Deployment lower from current levels of 2022 free ➢ Autom
Slide 12: Hybrid event to be held in-person and virtually - December 7, 2021
Hybrid event to be held in-person and virtually - December 7, 2021 Details to follow on investors.eastman.com
Eastman Chemical Company — Q3 2021 Earnings Presentation on 6ix