Enhancing the quality of life in a material way

Transcription

1 EMNDB17 Enhancing the quality of life in a material way

2 Eastman Chemical Company 2017 Databook 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 (detail of non-core and unusual items) 13 Stockholder information 16 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 2017 Sales Revenue: $3,343 million Adjusted Operating Earnings: $657 million * 2017 Depreciation & Amortization Expense: $213 million. Key products: Coatings & Inks Additives: Texanol, Tetrashield, ketones, esters, glycol ethers, and alcohol solvents; cellulosic, polyester, and polyolefin-based polymers Adhesives Resins: Hydrocarbon resins (Piccotac, Regalite, Eastotac, Eastoflex, Aerafin ) Tire Additives: Crystex insoluble sulfur, Santoflex antidegradants, and Impera performance resins Care Chemicals: Alkylamine derivatives Specialty Fluids: Eastman Therminol heat transfer fluids, Skydrol aviation hydraulic fluids, and aviation turbine oils Animal Nutrition: Formic acid solutions, Enhanz Crop Protection: Alkylamine derivatives, Banguard 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 Food, Feed, & Agriculture: Soil fumigants, fungicides, and plant-growth regulators Energy, Fuels, & Water: Alkylamine derivatives for water treatment Consumer/ Medical Durables: Polymers and solvents used in coatings, wood, and industrial applications Personal Care/Health & Wellness: Amine-based intermediates used in personal care applications Key raw materials: Alcohols, alpha methylstyrene, alkylamines, ammonia, aniline, benzene, C9 resin oil, CS2 caustic soda, ethylene oxide, formic acid, gum rosin, methyl isobutyl ketone, naphthenic process oil, neo-polyol esters, nitrobenzene, piperylene, phosphorous, propane, propylene, sulfur, styrene, sulfuric acid, wood pulp Key competitors: Coatings & Inks Additives: BASF SE, DowDuPont Inc. Adhesives Resins: ExxonMobil Corp., Kolon Industries, Inc., Evonik Industries Tire Additives: Oriental Carbon & Chemicals, Ltd., Shikoku Chemicals Corporation, Jiangsu Sinorgchem Technology Co. Ltd., Korea Kumho Petrochemical Co. Ltd., Lanxess AG Care Chemicals: BASF SE, DowDuPont Inc., Huntsman Corporation Specialty Fluids: DowDuPont Inc., ExxonMobil Corp. Animal Nutrition: BASF SE, Perstorp Crop Protection: DowDuPont Inc., Agro-Kanesho Co. Ltd., Bayer Advanced Materials 2017 Sales Revenue: $2,572 million Adjusted Operating Earnings: $493 million * 2017 Depreciation & Amortization Expense: $164 million. Key products: Specialty Plastics: Copolyesters (including Eastman Tritan ), cellulose esters, Trēva engineering bioplastic 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 head-up displays (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/Medical 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: Covestro, Trinseo, Evonik Industries AG, Saudi Basic Industries Corporation, Mitsubishi Chemical Corporation, S.K. Chemical Industries, Sichuan Push Acetati Company Limited, Daicel Chemical Industries Ltd., SABIC Advanced Interlayers: Sekisui Chemical Co., Ltd., Kuraray Co., Ltd. Performance Films: 3M Company, Saint-Gobain S.A., Garware Chemicals Limited Chemical Intermediates 2017 Sales Revenue: $2,728 million Adjusted Operating Earnings: $299 million* 2017 Depreciation & Amortization Expense: $148 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 and 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 Food, Feed, & Agriculture: Agrochemicals and various industrial intermediates Personal Care/Health & Wellness: Plasticizers for medical applications, acetyls for pharmaceuticals Consumables: Plasticizers in food contact applications and food packaging, polymer intermediates for consumer packaging Key raw materials: Acetone, ammonia, butanol, coal, ethane, ethanol, meta-xylene, methanol, natural gas, paraxylene, propane, propylene Key competitors: Intermediates: LyondellBasell Industries, BASF SE, DowDuPont Inc., Oxea, BP plc, Celanese Corporation, Lonza, Flint Hills Resources Plasticizers: BASF SE, ExxonMobil Corp., LG Chem, Ltd., Emerald Performance Materials Functional Amines: BASF SE, Chemours, U.S. Amines, Oxea Fibers 2017 Sales Revenue: $852 million Operating Earnings: $224 million* 2017 Depreciation & Amortization Expense: $58 million. Key products: Acetate Tow, Acetate Yarn, & Acetyl Chemical Products: Acetate yarn, acetic anhydride, acetylation-grade acetic acid, cellulose acetate flake, cellulose acetate tow, triacetin plasticizers Key markets & applications: Filter Media: Cigarette filters Consumables: Home furnishings, industrial fabrics, and apparel Personal Care/Health & Wellness: Medical tape Key raw materials: High-sulfur coal, methanol, polyethylene terephthalate, wood pulp Key competitors: Acetate Tow: Celanese Corporation, Rhodia Acetow, Daicel Corporation Acetate Yarn: UAB Dirbtinis Pluostas, Industrias del Acetato de Celulosa S.A., Mitsubishi Rayon Co. Ltd., Invista, Nan Ya Plastics Corporation Acetyl Chemical Products: Jiangsu Ruijia Chemistry Co., Ltd., Polynt SPA, Daicel Corporation, Celanese Corporation, Rhodia Acetow Eastman Chemical Company 2017 Sales Revenue by End Market Transportation 20% Consumables 17% Building & Construction 14% Industrial Chemicals & Processing 11% Filter Media 8% Consumer/Medical Durables 7% Food, Feed, & Agriculture 7% Personal Care/Health & Wellness 6% Energy, Fuels & Water 5% Other 5% * Adjusted for non-core and unusual items. See Page 8 for reconciliation to GAAP operating earnings.

4 Eastman at a glance (continued) Additives & Functional Products: 2017 revenue by end-use market Advanced Materials: 2017 revenue by end-use market Personal Care/Health & Wellness 3% Consumer/Medical Durables 4% Other 11% Transportation 28% Other Electronics 2% 7% Personal Care/ Health & Wellness 9% Transportation 33% Energy, Fuels & Water 9% Food, Feed, & Agriculture 10% Consumer/Medical Durables 15% Building & Construction 12% Consumables 23% 2017 revenue by product line 2017 revenue by region Building & Construction 15% Consumables 19% 2017 revenue by product line 2017 revenue by region Animal Nutrition & Crop Protection 12% Specialty Fluids 13% Care Chemicals 17% Tire Additives 17% Coatings & Inks Additives 23% Adhesives Resins 18% 35% 6% 36% 23% Specialty Plastics 51% Performance Films 16% Advanced Interlayers 33% 36% 5% 26% 33% Chemical Intermediates: Corporate: Electronics 2% Transportation 5% Consumer/Medical Durables 5% Energy, Fuels & Water 8% Consumables 9% Personal Care & Wellness 9% 2017 revenue by end-use market Other 5% Food, Feed, & Agriculture 11% Industrial Chemicals & Processing 28% Building & Construction 18% 2017 revenue by product line 2017 revenue by region 5% Personal Care/Health & Wellness 6% Food, Feed, & Agriculture 7% Consumer/Medical Durables 7% Energy, Fuels & Water Filter media 8% 2017 revenue by end-use market Other 5% Industrial Chemicals & Processing 11% Transportation 20% Building & Construction 14% Consumables 17% 2017 revenue by segment 2017 revenue by region Functional Amines 17% Plasticizers 19% Intermediates 64% 68% 6% 12% 14% Additives & Functional Products 35% Advanced Materials 27% Fibers 9% Chemical Intermediates 29% 44% 5% 27% 24% 4

5 Regions Global manufacturing locations North America Europe, Middle East, and Africa Latin America Asia Pacific Alvin, TX Ghent, Belgium Leuna, Germany Oulu, Finland Trenton, MI Anniston, AL Hefei, China Linden, NJ Pace, FL Ulsan, Korea Antwerp, Belgium Itupeva, Brazil Longview, TX Santo Toribio, Mexico Uruapan, Mexico Axton, VA Jefferson, PA Martinsville, VA Sauget, IL Watertown, NY Canoga Park, CA Jurong Island, Singapore Mauá, Brazil Shenzhen, China Wuhan, China Cartersville, GA Kashima, Japan Middelburg, the Netherlands Springfield, MA Yixing, China Chestertown, MD Kingsport, TN Monongahela, PA St. Gabriel, LA Zibo, China Columbia, SC Kohtla-Järve, Estonia Nanjing, China Sun Prairie, WI Dresden, Germany Kuantan, Malaysia Newport, Wales Suzhou, China Franklin, VA Le Moyne, AL Nienburg, Germany Texas City, TX World headquarters Sales revenue by region (Dollars in millions) Year United States and Canada $4,189 $4,025 $4,350 $4,384 $4,290 Asia Pacific 2,306 2,163 2,333 2,540 2,584 Europe, Middle East, and Africa 2,539 2,305 2,422 2,091 1,975 Latin America Eastman Chemical Company $9,549 $9,008 $9,648 $9,527 $9,350 5

6 Financial information (Dollars in millions except per share amounts) Selected operating items Sales $9,549 $9,008 $9,648 $9,527 $9,350 Operating earnings 1,532 1,383 1,384 1,162 1,862 Mark-to-market pension and other postretirement benefits gains (losses), net (21) (383) Asset impairments and restructuring (gains) charges, net of tax Acquisition integration and transaction costs Additional costs of acquired inventories 7 24 Net costs resulting from coal gasification incident 112 Operating earnings excluding non-core and unusual items 1,631 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 (0.09) (1.49) Asset impairments and restructuring (gains) charges, net of tax (0.02) 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 Gain from sale of businesses, net of tax (0.01) (0.07) Additional costs of acquired inventories, net of tax Net costs resulting from coal gasification incident, net of tax 0.55 Estimated net tax benefit from enactment of new tax reform legislation, net of tax (2.32) Diluted earnings from continuing operations per share excluding non-core and unusual items Note: See Exhibit A for detail of non-core and unusual items. 6

7 Product and raw material information Eastman Chemical Company material flows Other purchased materials Wood pulp Coal/ oxygen Natural gas/ olefins Paraxylene/ oxygen Multiple-step organic synthesis Cellulose esters Methanol Methyl acetate Acetic anhydride Syngas Olefins Terephthalic acid Dimethyl terephthalate Hydroquinone/ derivatives Plastic additives Sucrose acetate isobutyrate Insoluble sulphur PPDs Heat transfer fluids Acetate tow Acetate yarn Excipients Cellulose esters Acids Anhydrides Arylides Esters Waxes/resins Keytones Aldehydes Alcohols Glycols Esters Plasticizers PVB resins Amines Specialty copolyesters Performance films 2017 total cost of operations * Top purchased raw materials and energy Olefin feedstocks Natural gas Wood pulp Paraxylene Methanol Polyvinyl Alcohol Coal Other raw materials *Total cost of operations defined as sales less operating earnings excluding non-core and unusual items, detailed on page 8. 7

8 2017 segment information 1st 2nd 3rd 4th (Dollars in millions) Qtr. Qtr. Qtr. Qtr. Year Additives & Functional Products Sales $773 $830 $886 $854 $3,343 Operating earnings Asset impairments and restructuring charges, net Net costs resulting from coal gasification incident Operating earnings excluding non-core and unusual items Depreciation and amortization expense 213 Advanced Materials Sales $634 $657 $646 $635 $2,572 Operating earnings Net costs resulting from coal gasification incident Operating earnings excluding unusual items Depreciation and amortization expense 164 Chemical Intermediates Sales $670 $703 $696 $659 $2,728 Operating earnings Net costs resulting from coal gasification incident Operating earnings excluding non-core items Depreciation and amortization expense 148 Fibers Sales $213 $215 $224 $200 $852 Operating earnings Net costs resulting from coal gasification incident Operating earnings excluding unusual items Depreciation and amortization expense 58 Other Sales $13 $14 $13 $14 $54 Operating (loss) earnings Growth initiatives and businesses not allocated to operating segments (28) (32) (32) (22) (114) Pension and other postretirement benefit plans income (expense), net not allocated to operating segments Restructuring and acquisition integration and transaction costs (5) (5) Operating (loss) gain before non-core items (10) (14) (14) 12 (26) Asset impairments and restructuring charges, net Mark-to-market pension and other postretirement benefit plans (gain), net (21.) 4 (21.) 4 Operating loss excluding non-core items (10) (14) (14) (4) (42) Depreciation and amortization expense 4 Eastman Chemical Company Sales $2,303 $2,419 $2,465 $2,362 $9,549 Operating earnings ,532 Asset impairments and restructuring charges, net 8. 1,3 8. 1,3 Mark-to-market pension and other postretirement benefit plans (gain), net (21.) 4 (21.) 4 Net costs resulting from coal gasification incident Operating earnings excluding non-core and unusual items ,631 Depreciation and amortization expense 587 Note: See Exhibit A for detail of non-core and unusual items footnoted above. 8

9 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) , ,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 detail of non-core and unusual items footnoted above. 9

10 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 (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 ,4. 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 detail of non-core and unusual items footnoted above. 10

11 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 detail of non-core and unusual items footnoted above. 11

12 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 items 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 detail of non-core and unusual items footnoted above. 12

13 Exhibit A Notes to segment information (detail of non-core and unusual items) Year 2017 Footnote 1. Fourth quarter 2017 includes $3 million asset impairments and restructuring charges, including severance, in the Additives & Functional Products segment for the closure of a facility in China. 2. Fourth quarter 2017 includes net costs of disruption, repairs, and reconstruction of the coal gasification facility and restart of operations resulting from the October 4, 2017, incident. 3. In fourth quarter 2017, as part of the previously announced plan to reduce costs primarily in 2017, the Company recognized restructuring charges of $5 million primarily for severance. 4. Fourth quarter 2017 annual mark-to-market pension and other postretirement benefit plans valuation (gain), net. Year 2016 Footnote 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 U.K. 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 Footnote 1. Included in third quarter 2015 earnings are indefinite-lived intangible asset impairments of $18 million to 2015 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, U.K., 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 MTM loss on a U.K. pension plan obligation triggered by the closure of the Workington, U.K., 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 and Coating, Inc. 13

14 Exhibit A (continued) Notes to segment information (detail of non-core and unusual items) 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 and 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 and 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 and 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. 14

15 Exhibit A (continued) Notes to segment information (detail of non-core and unusual items) 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. 15

16 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 $2.09 in 2017, $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 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 16

17 Eastman Chemical Company 200 S. Wilcox Drive Kingsport, Tennessee U.S.A. (1) Eastman Chemical Company. Eastman brands referenced herein are trademarks of Eastman or one of its subsidiaries or are being used under license. The symbol denotes registered trademark status in the U.S.; marks may also be registered internationally. EMN-CC /18