Third-Quarter 2016 Financial Results. Mark Costa, Board Chair & CEO Curt Espeland, EVP & CFO October 28, 2016

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1 Third-Quarter 2016 Financial Results Mark Costa, Board Chair & CEO Curt Espeland, EVP & CFO October 28, 2016

2 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 our Form 10-Q for second quarter 2016 filed with the Securities and Exchange Commission and our Form 10-Q to be filed for third quarter 2016 for risks and uncertainties which could cause actual results to differ materially from current expectations. Non-GAAP financial measures Earnings referenced in this presentation are earnings per share and operating earnings that exclude certain non-core costs, charges, and gains. Free cash flow is cash provided by operating activities less cash used for additions to properties and equipment and net debt is total borrowings less cash and cash equivalents. Reconciliations to the most directly comparable GAAP financial measures and other associated disclosures, including a description of the excluded items, are available in our third quarter 2016 financial results news release available in the Investors section of our website and in the Form 8-K filed with the SEC on October 27, Projections of future earnings also exclude any non-core, unusual, or nonrecurring items. 2 2

3 Strategic highlights Innovation success Impera TM tire resins Growth projects progressing well Disciplined cost management on track Supply Chain Enterprise Manufacturing All 3 major expansion initiatives on or under budget ~$200 million net cost reductions across 2016 and

4 3Q 2016 financial results Corporate 3Q16 ($ in millions, except EPS) $2,287 $2,447 3Q16 3Q15 $416 $459 (7%) change (7%) price effect 0% volume effect $1.86 $1.84 Sales revenue Operating earnings EPS Revenue decreased primarily due to lower selling prices and lower Fibers sales volume more than offsetting higher sales volume in the other segments. Operating earnings declined as an increase in Advanced Materials was more than offset by declines in the other segments. 4

5 3Q 2016 financial results Advanced Materials 3Q16 ($ in millions) $638 $624 3Q16 3Q15 $141 $116 2% change 5% volume/mix effect (3%) price effect Sales revenue Operating earnings Sales revenue increased due to higher sales volume of premium products including Eastman Tritan TM copolyester, Saflex acoustic interlayers, and performance films. This was partially offset by lower selling prices, primarily for other copolyesters, attributed to lower raw material and energy costs. Operating earnings increased primarily due to higher sales volume and improved product mix of premium products and lower unit costs due to higher capacity utilization. 5

6 3Q 2016 financial results Additives & Functional Products 3Q16 ($ in millions) $752 $794 3Q16 3Q15 (5%) change 2% volume/mix effect (7%) price effect $160 $176 Sales revenue Operating earnings Sales revenue decreased due to lower selling prices primarily attributed to lower raw material and energy costs, partially offset by higher sales volume, across the segment. Operating earnings declined primarily due to lower selling prices more than offsetting lower raw material and energy costs and higher sales volume. 6

7 3Q 2016 financial results Fibers 3Q16 ($ in millions) $248 $320 3Q16 $102 3Q15 $79 (23%) change (16%) volume/mix effect (7%) price effect Sales revenue Operating earnings Sales revenue decreased primarily due to lower sales volume and lower selling prices, particularly for acetate tow. Lower acetate tow sales volume was primarily due to reduced sales in China. Operating earnings declined due to lower sales volume and lower selling prices, partially offset by lower raw material and energy costs and actions taken to reduce operating costs. 7

8 3Q 2016 financial results Chemical Intermediates 3Q16 ($ in millions) $638 $697 3Q16 3Q15 $72 (8%) change 2% volume/mix effect (10%) price effect $39 Sales revenue Operating earnings Sales revenue decreased due to lower selling prices. The lower selling prices were primarily attributed to the negative impact of continued competitive pressures due to lower oil prices and weak demand in Asia Pacific. Operating earnings declined primarily due to lower selling prices more than offsetting lower raw material and energy costs and lower hedging costs. 8

9 3Q 2016 cash flow and other financial highlights $450 million cash provided by operating activities Capital expenditures $141 million $309 million free cash flow Net debt reduced by $163 million Returned $143 million to stockholders: $75 million share repurchases, $68 million dividend Tax rate ~21% On track to generate >$900 million of FCF in

10 More specialty portfolio generates stronger consistent cash flow Operating earnings Free cash flow (in $millions) 100% >$900 ~30% ~60% ~70% Fibers/CI AM/AFP $332 ~40% 0% E E 10

11 Full-year 2016 outlook Growth drivers Strong growth of high value, innovative products Benefits from acquisitions Significant cost reductions Lower tax rate Balanced, disciplined allocation of strong cash flow Near-term headwinds Challenging global business climate Fibers business conditions Expect adjusted 2016 EPS to be between $6.70 and $