a world of innovation EMNDATABOOK16

Transcription

1 a world of innovation EMNDATABOOK16

2 Contents Eastman at a glance 3 Regions 5 Financial information 6 Product and raw material information 7 Segment information ( ) 8 Exhibit A (Notes to segment information) 12 Stockholder information 15 Eastman Chemical Company s products and operations are managed and reported in four segments Additives & Functional Products, Advanced Materials, Chemical Intermediates, and Fibers. 2

3 Eastman at a glance 3 Additives & Functional Products 2016 Sales Revenue: $2,979 Million 2016 Adjusted Operating Earnings: $611 Million* 2016 Depreciation & Amortization Expense $208 Million Key products: Coatings & Inks Additives: Texanol, ketones, esters, glycol ethers, and alcohol solvents; cellulosic, polyester, and polyolefinbased polymers Adhesives Resins: Hydrocarbon resins (Piccotac, Regalite, Eastotac ), Eastoflex Tire Additives: Crystex insoluble sulfur, Santoflex antidegradants, and Impera performance resins Care Chemicals Additives: Alkylamine derivatives Specialty Fluids: Eastman Therminol heat transfer fluids, Skydrol aviation hydraulic fluids, and aviation turbine oils Animal Nutrition: Formic acid solutions Crop Protection: Alkylamine derivatives Key markets & applications: Transportation: Insoluble sulfur, antidegradants, and performance resins used in rubber tire manufacturing, polymers and solvents used in OEM and refinish coatings, aviation fluids Consumables: Resins used in hygiene and packaging adhesives Building & Construction: Solvents used in architectural coatings, resins for construction adhesives and interior flooring Agriculture: Soil fumigants, fungicides, and plant-growth regulators Industrial Chemicals & Processing: Heat transfer fluids for chemical processes Energy, Fuels & Water: Alkylamine derivatives for water treatment Personal Care/Health & Wellness: Aminebased intermediates used in personal care applications Consumer Durables: Polymers and solvents used in coatings, wood, and industrial applications Key raw materials: Alcohols, alpha methylstyrene, alkylamines, ammonia, aniline, benzene, C9 resin oil, CS2 caustic soda, ethylene oxide, formic acid, gum rosin, methanol, methyl isobutyl ketone, naphthenic process oil, neopolyol esters, nitrobenzene, paraxylene, piperylene, phosphorous, propane, propylene, sulfur, styrene, sulfuric acid, wood pulp Key competitors: Coatings & Inks Additives: BASF SE, The Dow Chemical Company Adhesives Resins: Exxon Mobil Corp., Kolon Industries, Inc. Tire Additives: Oriental Carbon & Chemicals, Ltd., Shikoku Chemicals Corporation, Jiangsu Sinorgchem Technology Co. Ltd., Korea Kumho Petrochemical Co. Ltd., Lanxess AG Care Chemicals Additives: BASF SE, The Dow Chemical Company, Huntsman Specialty Fluids: The Dow Chemical Company, Exxon Mobil Corp. Animal Nutrition: BASF SE, Perstorp Crop Protection: The Dow Chemical Company, Bayer, Agro- Kanesho Co. Ltd. Advanced Materials 2016 Sales Revenue: $2,457 Million 2016 Adjusted Operating Earnings: $471 Million 2016 Depreciation & Amortization Expense $160 Million Key products: Specialty Plastics: Copolyesters (including Eastman Tritan ), cellulose esters Advanced Interlayers: PVB sheet used as an adhesive interlayer in the production of laminated safety glass and primarily marketed under the Saflex brand name Performance Films: Aftermarket window film products including LLumar, V-KOOL, and SunTek brands Key markets & applications: Transportation: Interlayers for automotive safety glass, automotive acoustic glass, and HUD, aftermarket window film Consumables: Copolyesters used in consumer packaging, personal care and cosmetics packaging, in-store fixtures, and displays Building & Construction: PVB for architectural interlayers Consumer Durables: Copolyesters and cellulose esters used in consumer housewares and appliances Personal Care/Health & Wellness: Copolyesters for medical applications Electronics: Cellulose esters for displays Key raw materials: 2-EH, butyraldehyde, cellulose, ethanol, ethylene glycol, paraxylene, polyethylene terephthalate film, polyvinyl alcohol, purified terephthalic acid, triethylene glycol, vinyl acetate monomer Key competitors: Specialty Plastics: Bayer AG, Styron LLC, Evonik Industries AG, Saudi Basic Industries Corporation, Mitsubishi Chemical Corporation, S.K. Chemical Industries, Sichuan Push Acetati Company Limited, Daicel Chemical Industries Ltd. Advanced Interlayers: Sekisui Chemical Co., Kuraray Co Performance Films: 3M Company, Saint-Gobain S.A., Garware Chemicals Limited Chemical Intermediates 2016 Sales Revenue: $2,534 Million 2016 Adjusted Operating Earnings: $171 Million 2016 Depreciation & Amortization Expense $157 Million Key products: Intermediates: Oxo alcohols and derivatives, acetic acid and derivatives, acetic anhydride, ethylene, glycol ethers, and esters Plasticizers: Primary non-phthalate and phthalate plasticizers (Eastman 168, Eastman DOP), niche non-phthalate plasticizers (Benzoflex, Eastman TXIB, Eastman Effusion ) Functional Amines: Alkylamines Key markets & applications: Industrial Chemicals & Processing: Olefin & acetyl-based intermediates for industrial processing Building & Construction: Intermediates for paint/coating applications, solvents used in architectural coatings, construction chemicals, building materials, nonphthalate plasticizers used in interior surfaces Personal Care/Health & Wellness: Plasticizers for medical applications, acetyls for pharmaceuticals Food, Feed, & Agriculture: Agrochemicals and various industrial intermediates Consumables: Plasticizers in food contact applications and food packaging, polymer intermediates for consumer packaging Key raw materials: Acetone, ammonia, butanol, coal, ethane, ethanol, metaxylene, methanol, natural gas, paraxylene, propane, propylene Key competitors: Intermediates: LyondellBasell Industries, BASF SE, The Dow Chemical Company, Oxea, BP plc, Celanese Corporation, Lonza, Flint Hills Resources Plasticizers: BASF SE, Exxon Mobil Corp., LG Chem, Ltd., Emerald Performance Materials Functional Amines: BASF SE, Chemours, U.S. Amines, Oxea Fibers 2016 Sales Revenue: $992 Million 2016 Operating Earnings: $310 Million 2016 Depreciation & Amortization Expense $51 Million Key products: Acetate Tow; Acetate Yarn; Acetyl Chemical Products: Acetic anhydride, acetylation-grade acetic acid, cellulose diacetate flake, triacetin plasticizers Key markets & applications: Tobacco: Cigarette filters Consumables: Home furnishings, industrial fabrics, and apparel Personal Care/Health & Wellness: Medical tape Key raw materials: High-sulfur coal, methanol, wood pulp Key competitors: Acetate Tow: Celanese Corporation, Solvay S.A., Daicel Corporation Acetate Yarn: UAB Dirbtinis Pluostas, Industrias del Acetato de Celulosa S.A., Mitsubishi Rayon Co. Ltd. Acetyl Chemical Products: Jiangsu Ruijia Chemistry Co., Ltd., Polynt SPA, Daicel Corporation, Celanese Corporation, Solvay S.A. Eastman Chemical Company 2016 Sales Revenue by End Market Transportation 20% Consumables 16% Building & Construction 14% Tobacco 11% Industrial Chemicals & Processing 10% Personal Care/Health & Wellness 7% Consumer Durables 7% Food, Feed, & Agriculture 6% Energy, Fuels, & Water 4% Electronics 3% Other 2% * Adjusted for non-core items. See Page 8 for reconciliation to GAAP operating earnings.

4 Eastman at a glance (continued) 4

5 Regions Global manufacturing locations North America Europe, Middle East, and Africa Latin America Asia Pacific Alvin, TX Franklin, VA Kuantan, Malaysia Nienburg, Germany Suzhou, China Anniston, AL Ghent, Belgium Lemoyne, AL Oulu, Finland Texas City, TX Antwerp, Belgium Hefei, China Leuna, Germany Pace, FL Trenton, MI Axton, VA Indianapolis, IN Linden, NJ Santo Toribio, Mexico Ulsan, Korea Canoga Park, CA Itupeva, Brazil Longview, TX São Paulo Mauá, Brazil Uruapan, Mexico Cartersville, GA Jefferson, PA Martinsville, VA Sauget, IL Watertown, NY Chestertown, MD Jurong Island, Singapore Middlesburg, The Netherlands Shenzhen, China Wuhan, China Columbia, SC Kashima, Japan Monongahela, PA Springfield, MA Yixing, China Dresden, Germany Kingsport, TN Nanjing, China St. Gabriel, LA Zibo, China Fengxian, China Kohtla-Järve, Estonia Newport, Wales Sun Prairie, WI World headquarters Sales revenue by region (Dollars in millions) United States and Canada 4,025 4,350 4,384 4,290 Asia Pacific 2,163 2,333 2,540 2,584 Europe, Middle East, and Africa 2,305 2,422 2,091 1,975 Latin America Eastman Chemical Company 9,008 9,648 9,527 9,

6 Financial information (Dollars in millions except per share amounts) Selected operating items Sales $9,008 $9,648 $9,527 $9,350 Operating earnings 1,383 1,384 1,162 1,862 Mark-to-market pension and other postretirement benefits losses (gains), net (383) Asset impairments and restructuring charges, net Acquisition integration and transaction costs Additional costs of acquired inventories 7 24 Operating earnings excluding non-core items 1,534 1,717 1,613 1,591 Depreciation and amortization expense Diluted earnings from continuing operations per share Mark-to-market pension and other postretirement benefits losses (gains), net of tax (1.49) Asset impairments and restructuring charges, net of tax Acquisition integration, transaction, and financing costs, net of tax Early debt extinguishment and other related costs, net of tax 0.37 Cost of disposition of claims against discontinued Solutia operations, net of tax 0.02 Gain from sale of equity investment in Primister joint venture, net of tax (0.07) Additional costs of acquired inventories, net of tax Diluted earnings from continuing operations per share excluding non-core items

7 Product and raw material information Eastman Chemical Company material flows Paraxylene/ Oxygen total cost of operations * Top purchased raw materials and energy Olefin feedstocks Wood pulp Paraxylene Coal Natural gas Methanol Polyvinyl alcohol Other raw materials * Total cost of operations includes cost of sales, SGA, and R&D excluding non-core items. 7

8 2016 segment information 1st 2nd 3rd 4th (Dollars in millions) Qtr. Qtr. Qtr. Qtr. Year Additives & Functional Products Sales $737 $770 $752 $720 $2,979 Operating earnings Asset impairments and restructuring (gains) charges, net (2) ,2 Operating earnings excluding non-core items Depreciation and amortization expense 208 Advanced Materials Sales $589 $646 $638 $584 $2,457 Operating earnings Depreciation and amortization expense 160 Chemical Intermediates Sales $620 $633 $638 $643 $2,534 Operating earnings Depreciation and amortization expense 157 Fibers Sales $280 $234 $248 $230 $992 Operating earnings Depreciation and amortization expense 51 Other. Sales $10 $14 $11 $11 $46 Operating (loss) earnings Growth initiatives and businesses not allocated to segments (18) (24) (17) (23) (82) Pension and other postretirement benefit income (expense) and gain (loss) not allocated to operating segments (16) (53) (44) Restructuring and acquisition integration and transaction costs (9) 0 (30) (5) (44) Operating loss before non-core items (15) (11) (63) (81) (170) Asset impairments and restructuring charges, net ,4 Mark-to-market pension and other postretirement benefit plans loss, net ,6 Acquisition integration and transaction costs Operating loss excluding non-core items (6) (11) (3) (9) (29) Depreciation and amortization expense 4 Eastman Chemical Company Sales $2,236 $2,297 $2,287 $2,188 $9,008 Operating earnings ,383 Asset impairments and restructuring (gains) charges, net (2) ,4 45 1,2,3,4 Mark-to-market pension and other postretirement benefit plans loss, net ,6 Acquisition integration and transaction costs Operating earnings excluding non-core items ,534 Depreciation and amortization expense 580 Note: See Exhibit A for footnotes. 8

9 2015 segment information 1st 2nd 3rd 4th (Dollars in millions) Qtr. Qtr. Qtr. Qtr. Year Additives & Functional Products Sales $804 $830 $794 $731 $3,159 Operating earnings Depreciation and amortization expense 203 Advanced Materials Sales $561 $647 $624 $582 $2,414 Operating earnings Asset impairments and restructuring charges, net Additional costs of acquired inventories Operating earnings excluding non-core items Depreciation and amortization expense 161 Chemical Intermediates Sales $782 $745 $697 $587 $2,811 Operating earnings Depreciation and amortization expense 149 Fibers Sales $284 $299 $320 $316 $1,219 Operating earnings (loss) (7) Asset impairments and restructuring charges (gains), net 97 3 (2) Operating earnings excluding non-core items Depreciation and amortization expense 55 Other. Sales $12 $12 $12 $9 $45 Operating (loss) earnings Growth initiatives and businesses not allocated to segments (26) (22) (18) (21) (87) Pension and other postretirement benefit income (expense) and gain (loss) not allocated to operating segments (104) (76) Acquisition transaction, integration, and restructuring (8) (10) (9) (56) (83) Operating loss before non-core items (25) (24) (16) (181) (246) Asset impairments and restructuring charges, net ,5,6 Mark-to-market pension and other postretirement benefit plans loss, net ,8 Acquisition integration and transaction costs Operating loss excluding non-core items (5) (11) (7) (13) (36) Depreciation and amortization expense 3 Eastman Chemical Company Sales $2,443 $2,533 $2,447 $2,225 $9,648 Operating earnings ,384 Asset impairments and restructuring charges, net 109 3,4 3,5 21 1,5 53 3, ,3,4,5,6 Mark-to-market pension and other postretirement benefit plans loss, net ,8 Acquisition integration and transaction costs Additional costs of acquired inventories Operating earnings excluding non-core items ,717 Depreciation and amortization expense 571 Note: See Exhibit A for footnotes. 9

10 2014 segment information 1st 2nd 3rd 4th (Dollars in millions) Qtr. Qtr. Qtr. Qtr. Year Additives & Functional Products Sales $608 $682 $675 $675 $2,640 Operating earnings Asset impairments and restructuring (gains) charges, net (2) ,3,4 (1) ,2,3,4 Additional costs of acquired inventories ,6 Operating earnings excluding non-core items Depreciation and amortization expense 140 Advanced Materials Sales $581 $631 $604 $562 $2,378 Operating earnings Asset impairments and restructuring charges, net ,7 Additional costs of acquired inventories Operating earnings excluding non-core items Depreciation and amortization expense 143 Chemical Intermediates Sales $761 $761 $780 $732 $3,034 Operating earnings Additional costs of acquired inventories Operating earnings excluding non-core item Depreciation and amortization expense 99 Fibers Sales $354 $386 $346 $371 $1,457 Operating earnings Depreciation and amortization expense 66 Other. Sales $1 $ $8 $9 $18 Operating (loss) earnings Growth initiatives and businesses not allocated to segments (13) (15) (18) (12) (58) Pension and other postretirement benefit income (expense) and gain (loss) not allocated to operating segments (302) (293) Acquisition transaction, integration, and restructuring (12) (10) (14) (15) (51) Operating loss before non-core items (22) (22) (29) (329) (402) Mark-to-market pension and other postretirement benefit plans loss, net Acquisition integration and transaction costs ,12,13,14 Asset impairments and restructuring charges (gains), net 3 15 (5) (1) 16 (1) 15,16 Operating loss excluding non-core items (10) (17) (15) (11) (53) Depreciation and amortization expense 2 Eastman Chemical Company Sales $2,305 $2,460 $2,413 $2,349 $9,527 Operating earnings ,162 Additional costs of acquired inventories ,8,9 24 5,6,8,9 Acquisition integration and transaction costs ,12,13,14 Mark-to-market pension and other postretirement benefit plans loss, net Asset impairments and restructuring charges (gains), net 13 7,15 (7) 1, ,3,4,15 1,7, ,2,3,4,7,15,16 Operating earnings excluding non-core items ,613 Depreciation and amortization expense 450 Note: See Exhibit A for footnotes. 10

11 2013 segment information 1st 2nd 3rd 4th (Dollars in millions) Qtr. Qtr. Qtr. Qtr. Year Additives & Functional Products Sales $623 $664 $629 $613 $2,529 Operating earnings Depreciation and amortization expense 122 Advanced Materials Sales $584 $625 $583 $557 $2,349 Operating earnings Asset impairments and restructuring charges (gains), net (1) 1, ,2,3 Operating earnings excluding non-core items Depreciation and amortization expense 144 Chemical Intermediates Sales $748 $782 $757 $726 $3,013 Operating earnings Asset impairments and restructuring charges, net Operating earnings excluding non-core item Depreciation and amortization expense 98 Fibers Sales $346 $363 $363 $369 $1,441 Operating earnings Depreciation and amortization expense 65 Other. Sales $6 $6 $6 $18 Operating (loss) earnings Growth initiatives and businesses not allocated to segments (21) (32) (20) (59) (132) Pension and other postretirement benefit income (expense) and gain (loss) not allocated to operating segments Acquisition transaction, integration, and restructuring (10) (11) (12) (26) (59) Operating (loss) earnings before non-core items (28) (40) Mark-to-market pension and other postretirement benefit plans loss, net (86) 4 (297) 4 (383) 4 Asset impairments and restructuring charges, net , ,7 70 5,6,7 Acquisition integration and transaction costs Operating loss excluding non-core items (18) (16) (19) (21) (74) Depreciation and amortization expense 4 Eastman Chemical Company Sales $2,307 $2,440 $2,338 $2,265 $9,350 Operating earnings ,862 Mark-to-market pension and other postretirement benefit plans loss, net (86) 4 (297) 4 (383) 4 Asset impairments and restructuring charges, net ,2,5, ,5,7 76 1,2,3,5,6,7 Acquisition integration and transaction costs Operating earnings excluding non-core items ,591 Depreciation and amortization expense 433 Note: See Exhibit A for footnotes. 11

12 Exhibit A Year 2016 Footnote Notes to segment information 1. Included in first quarter 2016 earnings is a gain of $2 million for the sale of previously impaired assets at the Crystex research and development facility in France. 2. In fourth quarter 2016, the Company impaired a capital project resulting in a charge of $12 million. 3. In third quarter 2016, as part of the Company's previously announced plan to reduce costs primarily in 2017, the Company recognized restructuring charges of $30 million for severance. 4. In fourth quarter 2016, as part of the previously announced plan to reduce costs primarily in 2017, the Company recognized restructuring charges of $5 million primarily for severance. 5. In third quarter 2016, there was a change to a UK pension plan which triggered an interim remeasurement of the plan obligation and resulted in a $30 million mark-to-market loss. 6. Fourth quarter 2016 annual mark-to-market pension and other postretirement benefit plans valuation loss, net. 7. First quarter 2016 transaction cost is for final resolution of the 2011 Sterling Chemical, Inc. acquisition purchase price, and integration costs are for the Commonwealth Laminating & Coating, Inc. business acquired in December These costs are included in selling, general, and administrative expenses in the Statements of Earnings. Year 2015 Footnote 1. Included in third quarter 2015 earnings are indefinite-lived intangible asset impairments of $18 million to reduce the carrying value of trade names in the window films market to their estimated current fair values. 2. Included in first quarter 2015 earnings are additional costs of acquired inventories. As required by purchase accounting, acquired Commonwealth Laminating and Coating, Inc. inventories were marked to fair value. In first quarter 2015, the remaining portion of these inventories were sold resulting in an increase in cost of sales. 3. Included in first, second, and fourth quarter 2015 earnings are asset impairments and restructuring charges (gains), net for the closure of the Workington, UK, acetate tow manufacturing site. 4. Included in first quarter 2015 earnings are asset impairment and restructuring charges of $12 million resulting from the decision to discontinue a growth initiative reported in "other". 5. Included in second and third quarter 2015 earnings are severance costs primarily associated with the integration of Taminco Corporation of $2 million and $2 million, respectively. 6. Included in fourth quarter 2015 earnings are asset impairments and restructuring charges, net primarily due to severance costs for a corporate reduction in force of $51 million. 7. Included in second quarter 2015 earnings is a mark-to-market loss on a UK pension plan obligation triggered by the closure of the Workington, UK, acetate tow manufacturing facility. 8. Fourth quarter 2015 included mark-to-market pension and other postretirement benefit plans net loss. 9. Included in 2015 earnings are integration and transaction costs primarily for the completed acquisitions of Taminco Corporation and Commonwealth Laminating & Coating, Inc. 12

13 Exhibit A (continued) Notes to segment information Year 2014 Footnote 1. Included in second and fourth quarters 2014 earnings are gains of $2 million and $1 million respectively, related to the sale of previously impaired assets at a former polymers production facility in China. 2. Included in third quarter 2014 earnings are asset impairments and restructuring charges of $42 million for costs of the closure of a Crystex research and development facility in France. 3. Included in third quarter 2014 earnings is a $22 million asset impairment of the Crystex tradename. 4. Included in third quarter 2014 earnings are asset impairments and restructuring charges of $1 million and $4 million in the Additives & Functional Products and Advanced Materials segments, respectively, related to a change in estimate of certain costs of the fourth quarter 2012 termination of the operating agreement for the São José dos Campos, Brazil, site. 5. As required by purchase accounting, acquired BP plc s global aviation turbine engine oil business inventories were marked to fair value. Included in second and third quarters 2014 earnings were approximately $2 million and $6 million respectively, for the additional costs of inventories from the acquired global aviation turbine engine oil business inventories that were sold in 2014, resulting in an increase in cost of sales. 6. As required by purchase accounting, acquired Taminco Corporation inventories were marked to fair value. Included in fourth quarter 2014 earnings are additional costs of these inventories. Approximately $7 million was sold in 2014 resulting in an increase in cost of sales. 7. Included in first and fourth quarters 2014 earnings are asset impairments and restructuring charges of $10 million and $2 million respectively, primarily for the closure of a production facility in Taiwan for the Flexvue performance films product line." 8. As required by purchase accounting, acquired Commonwealth Laminating and Coating, Inc. inventories were marked to fair value. Included in fourth quarter 2014 earnings are additional costs of these inventories. Approximately $1 million was sold in 2014 resulting in an increase in cost of sales. 9. Included in fourth quarter 2014 earnings are approximately $8 million additional costs of inventories from the acquired Taminco Corporation inventories sold in 2014, resulting in an increase in cost of sales. 10. Fourth quarter 2014 mark-to-market net loss for pension and other postretirement benefit plans actuarial adjustments. 11. Included in first quarter 2014 earnings are integration costs of $9 million for the acquired Solutia Inc. business. 12. Included in second quarter 2014 earnings are transaction costs of $3 million for the acquisition of the global aviation turbine engine oil business from BP plc in June 2014 and integration costs of $7 million for the acquired Solutia Inc. and the global aviation turbine engine oil businesses. 13. Included in third quarter 2014 earnings are transaction costs of $7 million for the pending acquisition of Taminco Corporation and Commonwealth Laminating & Coating, and for the completed acquisition of the global aviation turbine engine oil business from BP plc. Included in third quarter 2014 earnings are integration costs of $5 million for the acquired Solutia Inc. and global aviation turbine oil businesses. 14. Included in fourth quarter 2014 earnings are transaction costs of $12 million primarily for the completed acquisitions of Taminco Corporation, Commonwealth Laminating & Coating, and the global aviation turbine engine oil business from BP plc. and integration costs of $3 million primarily for the acquired businesses including Solutia Inc., the global aviation turbine engine oil business from BP plc, Commonwealth Laminating & Coating, Inc. and Taminco Corporation. 15. Included in first and third quarters 2014 earnings are restructuring charges of $3 million and $2 million, respectively, for severance associated with the continued integration of Solutia Inc. 16. Included in second and fourth quarters 2014 earnings are gains of $5 million and $1 million respectively, on sales of previously impaired assets at the former photovoltaics production facility in Germany. 13

14 Exhibit A (continued) Notes to segment information Year 2013 Footnote 1. Included in second quarter 2013 earnings are restructuring charges of $2 million and $3 million in the Advanced Materials and Chemical Intermediates segments, respectively, primarily related to severance. 2. Included in second quarter 2013 earnings is a reduction in previous charges associated with the fourth quarter 2012 termination of the operating agreement for the São José dos Campos, Brazil, site, which is reported as reduction of $3 million in the Advanced Materials segment. 3. Fourth quarter 2013 earnings include asset impairments of $4 million in the Advanced Materials segment for the fourth-quarter decision to terminate efforts to develop a continuous resin process in Kuantan, Malaysia, and Antwerp, Belgium. 4. Fourth quarter 2013 mark-to-market includes gains for pension and other postretirement benefit plans actuarial adjustments. Third quarter and twelve months 2013 include an $86 million mark-to-market gain, net, interim remeasurement of Eastman's other postretirement benefit plan obligation, triggered by a plan change in life insurance benefits. 5. First, second, third, and fourth quarters 2013 earnings include restructuring charges of $3 million, $3 million, $3 million, and $15 million respectively, primarily for severance associated with the continued integration of Solutia, Inc. 6. Second quarter 2013 earnings include asset impairments and restructuring charges of $13 million primarily for the closure of a production facility in Germany for the photovoltaics line. 7. Fourth quarter 2013 earnings include asset impairment and restructuring charges of approximately $30 million for management s decision not to pursue its Perennial Wood growth initiative. 8. Included in 2013 earnings are transaction and integration costs related to the acquisition of Solutia Inc. 14

15 Stockholder information Stock exchange listing Eastman Chemical Company common stock is listed and traded on the New York Stock Exchange under the ticker symbol EMN. Dividends Quarterly dividends on common stock, if declared by the Board of Directors, are usually paid on or about the first business day of the month following the end of each quarter. On a split-adjusted basis, dividends declared were $1.89 in 2016, $1.66 in 2015, $1.45 in 2014, and $1.25 in Corporate offices Eastman Chemical Company 200 S Wilcox Drive P.O. Box 431 Kingsport, TN U.S.A. Stock transfer agent and registrar Inquiries and changes to stockholder accounts should be directed to our transfer agent: American Stock Transfer & Trust Company 59 Maiden Lane New York, NY In the United States: Outside the United States: (1) or (1) Eastman stockholder information 877-EMN-INFO ( ) Eastman databook Eastman Chemical Company s databook has been developed to assist investors in understanding and evaluating Eastman. It provides financial and operations data and other information about the company and its operating segments. The notes to the financial statements are not included. Complete financial statements and Management s Discussion and Analysis of Financial Condition and Results of Operations appear in Eastman s Annual Report on Form 10-K and Annual Report to Stockholders, both of which are available on Eastman Investor Relations Gregory A. Riddle Vice President, Investor Relations and Corporate Communications griddle@eastman.com Louis J. Reavis Investor Relations Manager lreavis@eastman.com 15

16 Eastman Chemical Company P.O. Box 431 Kingsport, Tennessee U.S.A. (1) Eastman Chemical Company. Eastman brands referenced herein are trademarks of Eastman Chemical Company or one of its subsidiaries. The used on Eastman brands denotes registered trademark status in the U.S.; marks may also be registered internationally. Non-Eastman brands referenced herein are trademarks of their respective owners. EMN-CR /17