| Metric (USD millions)                      | Q1 2023  **[0000915389-23-000091_emn-20230331.htm:24]**  | Q2 2023  **[0000915389-23-000136_emn-20230630.htm:28]**  | Q3 2023  **[0000915389-23-000170_emn-20230930.htm:30]**  | Q4 2023 | Q1 2024  **[0000915389-24-000133_emn-20240331.htm:23]**  | Q2 2024  **[0000915389-24-000192_emn-20240630.htm:25]**  | Q3 2024  **[0000915389-24-000227_emn-20240930.htm:35]**  |
|--------------------------------------------|---------------|---------------|---------------|---------|---------------|---------------|---------------|
| Advanced Materials                         | 742           | 739           | 746           | N/A     | 748           | 795           | 787           |
| Additives & Functional Products            | 777           | 747           | 670           | N/A     | 704           | 718           | 744           |
| Chemical Intermediates                     | 589           | 514           | 527           | N/A     | 523           | 515           | 593           |
| Fibers                                     | 303           | 323           | 323           | N/A     | 331           | 330           | 336           |
| Other                                      | 1             | 1             | N/A           | N/A     | 4             | 5             | 4             |
| Total Sales by Operating Segment           | 2,411         | 2,323         | 2,266         | N/A     | 2,306         | 2,358         | 2,464         |

75c6247634b7aaccfffae93b58b88c19f34e608d6c9f2396661f9dba5f0d1587

0d5bd9c3f3f1c096fb8d5f7acb772398d57fc569f854da895697e19110ddb842

| Metric (USD Million) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|
| United States and Canada | **$1,065**  **[0000915389-23-000091_emn-20230331.htm:34]**  | **$1,000**  **[0000915389-23-000136_emn-20230630.htm:42]**  | **$966**  **[0000915389-23-000170_emn-20230930.htm:43]**  | **$969**  **[0000915389-24-000133_emn-20240331.htm:33]**  | **$969**  **[0000915389-24-000133_emn-20240331.htm:33]**  | **$994**  **[0000915389-24-000189_ex99_0120240630cctables.htm:3]**  | **$1,032**  **[0000915389-24-000227_emn-20240930.htm:38]**  |
| Europe, Middle East, and Africa | **$709**  **[0000915389-23-000091_emn-20230331.htm:34]**  | **$635**  **[0000915389-23-000136_emn-20230630.htm:42]**  | **$602**  **[0000915389-23-000170_emn-20230930.htm:43]**  | **$659**  **[0000915389-24-000133_emn-20240331.htm:33]**  | **$659**  **[0000915389-24-000133_emn-20240331.htm:33]**  | **$650**  **[0000915389-24-000189_ex99_0120240630cctables.htm:3]**  | **$640**  **[0000915389-24-000227_emn-20240930.htm:38]**  |
| Asia Pacific | **$521**  **[0000915389-23-000091_emn-20230331.htm:34]**  | **$557**  **[0000915389-23-000136_emn-20230630.htm:42]**  | **$576**  **[0000915389-23-000170_emn-20230930.htm:43]**  | **$564**  **[0000915389-24-000133_emn-20240331.htm:33]**  | **$564**  **[0000915389-24-000133_emn-20240331.htm:33]**  | **$590**  **[0000915389-24-000189_ex99_0120240630cctables.htm:3]**  | **$653**  **[0000915389-24-000227_emn-20240930.htm:38]**  |
| Latin America | **$117**  **[0000915389-23-000091_emn-20230331.htm:34]**  | **$132**  **[0000915389-23-000136_emn-20230630.htm:42]**  | **$123**  **[0000915389-23-000170_emn-20230930.htm:43]**  | **$118**  **[0000915389-24-000133_emn-20240331.htm:33]**  | **$118**  **[0000915389-24-000133_emn-20240331.htm:33]**  | **$129**  **[0000915389-24-000189_ex99_0120240630cctables.htm:3]**  | **$139**  **[0000915389-24-000227_emn-20240930.htm:38]**  |
| Total Sales Revenue | **$2,412**  **[0000915389-23-000091_emn-20230331.htm:34]**  | **$2,324**  **[0000915389-23-000136_emn-20230630.htm:42]**  | **$2,267**  **[0000915389-23-000170_emn-20230930.htm:43]**  | **$2,310**  **[0000915389-24-000133_emn-20240331.htm:33]**  | **$2,310**  **[0000915389-24-000133_emn-20240331.htm:33]**  | **$2,363**  **[0000915389-24-000189_ex99_0120240630cctables.htm:3]**  | **$2,464**  **[0000915389-24-000227_emn-20240930.htm:38]**  |

9706e1618129cea1176496aee224ef70890c7f3032d35694c3ef77fb375cd6f8

fc8beb4eeb617eddb9678742ffcc019004f6061ce1159b700a232267301ec65a

Eastman Chemical Company is a global specialty materials company that produces a wide range of products found in everyday items **[0000915389-24-000016_emn-20231231.htm:9]** **[0000915389-24-000103_emn-20240321.htm:7]** **[0000915389-24-000192_emn-20240630.htm:29]**. The company operates through four main segments: Advanced Materials, Additives & Functional Products, Chemical Intermediates, and Fibers, each contributing to various markets such as transportation, electronics, construction, food, agriculture, and textiles **[0000915389-24-000016_emn-20231231.htm:9]** **[0000915389-24-000103_emn-20240321.htm:7]** **[0000915389-24-000192_emn-20240630.htm:29]**. Eastman's diverse product portfolio and strategic market engagement drive its business activities and revenue generation **[0000915389-24-000016_emn-20231231.htm:9]** **[0000915389-24-000103_emn-20240321.htm:7]** **[0000915389-24-000192_emn-20240630.htm:29]**.

1. **Advanced Materials** - Focuses on polymers, films, and plastics with differentiated performance properties for end-markets like transportation, electronics, and construction. Key product lines include advanced interlayers, performance films, and specialty plastics **[0000915389-24-000016_emn-20231231.htm:15]** **[0000915389-24-000016_emn-20231231.htm:16]**.
2. **Additives & Functional Products** - Manufactures materials for diverse markets such as food, agriculture, transportation, and personal care. Key product lines include care additives, coatings additives, functional amines, and specialty fluids **[0000915389-24-000016_emn-20231231.htm:135]**.
3. **Chemical Intermediates** - Leverages large-scale and vertical integration to produce intermediates like olefin derivatives and plasticizers, primarily serving industrial chemicals, construction, and health markets **[0000915389-24-000016_emn-20231231.htm:135]**.
4. **Fibers** - Produces acetate tow and yarn for filtration media and textiles **[0000915389-24-000016_emn-20231231.htm:21]**.

44f55d5f2c1d419a7668d019cd945b77735f30fed730edc630d1f245d1bf4fea

4ee2d975626133aa1bdcb57b43ea60bc66e7b500b6fb1ca3627d1cd99ed369a5

1. Given the mechanical and feedstock preparation issues that have limited the methanolysis plant's operating rates to around 70%, what specific measures are you implementing to achieve consistent operation at higher rates, and how will you mitigate similar challenges in your upcoming projects in France and Texas?  **[EMN_3394817_9]** **[EMN_3394817_3]** **[EMN_3394817_1]** 
2. With the Aventa business showing potential to be larger than Naia, can you elaborate on the expected timelines for significant revenue contributions and the key market adoption risks that could impede Aventa's growth?  **[EMN_3394817_20]** 
3. The Other segment's losses have increased from around $50 million to approximately $200 million annually due to factors like pension costs and project start-up expenses; what strategies are in place to reduce these losses moving forward, and how sustainable is this level of expenditure?  **[EMN_3394817_7]** 
4. In the Fibers segment, as you shift from cigarette tow to textile fibers like Naia, what constraints are you facing in accelerating this transition, and how are you addressing capacity limitations or market challenges to maximize profitability in textiles?  **[EMN_3394817_19]** 
5. Given the current economic environment affecting customer demand in sectors like coatings and agriculture, how are you adjusting your operational strategies to navigate expected softness in Q3 and Q4, and what are your expectations for inventory build-up in these sectors for the coming year?  **[EMN_3394817_16]** 

8ba9756050970305808542fd1b43079527afbb93aa0b7d9df534365ed8f9ec51

4420f3b1d6887923fa076fcaf4644cbd27be7faffc8f5639d00d85d2adbb8d4b

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Earnings Guidance**: Maintained the midpoint of full-year guidance despite a $0.15 beat in Q2, due to reduced methanolysis expectations  **[EMN_3394817_5]** .
  2. **Volume and Demand**: Expected volume growth in the second half, driven by methanolysis and automotive innovation, with normal seasonality anticipated  **[EMN_3394817_21]** .
  3. **Methanolysis**: Aiming for over 70% utilization, with expectations to reach 90-plus percent as issues are resolved  **[EMN_3394817_9]** .
  4. **CapEx**: Expected to be between $650 million and $700 million  **[EMN_3394817_13]** .
  5. **Maintenance Costs**: 2024 is a normal year for maintenance expenses, with potential for lower expenses in 2025  **[EMN_3394817_11]** .
  6. **Share Repurchases**: Increased expectations to $300 million  **[EMN_3394817_13]** .
  7. **Acetyl Chain**: Higher planned shutdown costs, with $25 million in Q3 and additional costs in Q4  **[EMN_3394817_6]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **EBITDA**: Guided for $1.8 billion, with potential to reach $2.4 billion including Kingsport plant contributions  **[EMN_3381287_18]** .
  2. **Capital Expenditures (CapEx)**: Updated to $700 million to $750 million  **[EMN_3381287_17]** .
  3. **Share Repurchases**: Expected to be $200 million to $300 million  **[EMN_3381287_17]** .
  4. **Advanced Materials (AM) Growth**: Targeting a 40% growth rate compared to 2023  **[EMN_3381287_11]** .
  5. **Methanolysis Facility**: Expected to contribute $75 million in incremental EBITDA  **[EMN_3381287_10]** .
  6. **EPS Growth**: Targeting 8% to 12% growth  **[EMN_3381287_19]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Primary Demand**: Expected to be similar to the previous year, with modest growth in stable markets  **[EMN_3371826_4]** .
  2. **Volume and Destocking**: Significant volume increase expected due to lack of destocking  **[EMN_3371826_4]** .
  3. **Advanced Materials Segment**: Targeting earnings exceeding $450 million  **[EMN_3371826_7]** .
  4. **Methanolysis Plant**: Expected to contribute $75 million in EBITDA  **[EMN_3371826_19]** .
  5. **Seasonal Demand Patterns**: Normal seasonal pattern expected  **[EMN_3371826_4]** .
  6. **Pricing and Spreads**: Modest price reductions expected, with similar spreads to the previous year  **[EMN_3371826_5]** .
  7. **Utilization and Asset Management**: $100 million headwind expected to become a $50 million tailwind  **[EMN_3371826_7]** .
  8. **Depreciation Expense**: Increase expected, particularly in Advanced Materials  **[EMN_3371826_7]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: N/A
- **Guidance**: The documents do not contain information about the guidance given in the Q3 2024 earnings call for Eastman Chemical Company (EMN). The available documents only cover the Q2 2024 earnings call. Therefore, I cannot provide the guidance metrics for Q3 2024.

1f0d399b84f9ea3cb8db5a4ac303899eb42aed4540f2bd91c919d944141a63bb

- Total Revenue: $2.245 billion vs. $2.207 billion in Q4 2023 (+2% YoY)  **[0000915389-24-000016_emn-20231231.htm:84]** **[0000915389-25-000007_ex99_0120241231cctables.htm:4]** **[0000915389-25-000007_ex99_0120241231cctables.htm:0]**   
- Latin America Revenue: $125 million vs. $115 million in Q4 2023 (+9% YoY)  **[0000915389-24-000016_emn-20231231.htm:69]** **[0000915389-25-000007_ex99_0120241231cctables.htm:5]**   
- Operating Income (EBIT): $349 million vs. $477 million in Q4 2023 (-27% YoY)  **[0000915389-24-000016_emn-20231231.htm:84]** **[0000915389-25-000007_ex99_0120241231cctables.htm:4]**   
- Net Income: $330 million vs. $31 million in Q4 2023 (**+967% YoY**)  **[0000915389-24-000016_emn-20231231.htm:84]** **[0000915389-25-000007_ex99_0120241231cctables.htm:4]**   
- Earnings Per Share (Basic): $2.85 vs. $2.62 in Q4 2023 (+9% YoY)  **[0000915389-24-000016_emn-20231231.htm:84]** **[0000915389-25-000007_ex99_0120241231cctables.htm:4]**   

a0bda15de03087f4f40fec96ce77a4dbc4e708bdf9279de587e88817594f4193

- **Sekisui Chemical Co., Ltd.** - Competitor in the advanced interlayers product line, specifically for Saflex™ products  **[0000915389-24-000016_emn-20231231.htm:16]** .
- **Kuraray Co., Ltd.** - Competitor in the advanced interlayers product line, specifically for Saflex™ products  **[0000915389-24-000016_emn-20231231.htm:16]** .
- **Kingboard (Fo Gang) Specialty Resins Limited** - Competitor in the advanced interlayers product line, specifically for Saflex™ products  **[0000915389-24-000016_emn-20231231.htm:16]** .
- **Chang Chun Petrochemical Co., Ltd.** - Competitor in the advanced interlayers product line, specifically for Saflex™ products  **[0000915389-24-000016_emn-20231231.htm:16]** .
- **XPEL, Inc.** - Competitor in the performance films product line, specifically for LLumar™, Flexvue™, SunTek™, V-KOOL™, and Gila™ products  **[0000915389-24-000016_emn-20231231.htm:16]** .
- **3M Company** - Competitor in the performance films product line, specifically for LLumar™, Flexvue™, SunTek™, V-KOOL™, and Gila™ products  **[0000915389-24-000016_emn-20231231.htm:16]** .
- **Saint-Gobain S.A.** - Competitor in the performance films product line, specifically for LLumar™, Flexvue™, SunTek™, V-KOOL™, and Gila™ products  **[0000915389-24-000016_emn-20231231.htm:16]** .
- **S.K. Chemical Industries** - Competitor in the specialty plastics product line, specifically for Tritan™ copolyester and other copolyesters  **[0000915389-24-000016_emn-20231231.htm:16]** .
- **Sichuan Push Acetati Company Limited** - Competitor in the specialty plastics product line, specifically for Tritan™ copolyester and other copolyesters  **[0000915389-24-000016_emn-20231231.htm:16]** .
- **Daicel Chemical Industries Ltd.** - Competitor in the specialty plastics product line, specifically for Tritan™ copolyester and other copolyesters  **[0000915389-24-000016_emn-20231231.htm:16]** .
- **Covestro AG** - Competitor in the specialty plastics product line, specifically for Tritan™ copolyester and other copolyesters  **[0000915389-24-000016_emn-20231231.htm:16]** .
- **Trinseo S.A.** - Competitor in the specialty plastics product line, specifically for Tritan™ copolyester and other copolyesters  **[0000915389-24-000016_emn-20231231.htm:16]** .
- **Saudi Basic Industries Corporation** - Competitor in the specialty plastics product line, specifically for Tritan™ copolyester and other copolyesters  **[0000915389-24-000016_emn-20231231.htm:16]** .
- **Celanese Corporation** - Competitor in the fibers segment, specifically for acetate tow  **[0000915389-24-000016_emn-20231231.htm:21]** .
- **Cerdia International** - Competitor in the fibers segment, specifically for acetate tow  **[0000915389-24-000016_emn-20231231.htm:21]** .
- **Daicel Corporation** - Competitor in the fibers segment, specifically for acetate tow  **[0000915389-24-000016_emn-20231231.htm:21]** .
- **UAB Dirbtinis Pluostas** - Competitor in the fibers segment, specifically for acetate yarn and fiber  **[0000915389-24-000016_emn-20231231.htm:21]** .
- **Lenzing AG** - Competitor in the fibers segment, specifically for acetate yarn and fiber  **[0000915389-24-000016_emn-20231231.htm:21]** .
- **Aditya Birla Group** - Competitor in the fibers segment, specifically for acetate yarn and fiber  **[0000915389-24-000016_emn-20231231.htm:21]** .
- **Jiangsu Ruijia Chemistry Co., Ltd.** - Competitor in the acetyl chemical products line  **[0000915389-24-000016_emn-20231231.htm:21]** .
- **Polynt SpA** - Competitor in the acetyl chemical products line  **[0000915389-24-000016_emn-20231231.htm:21]** .
- **Hollingsworth and Vose Company** - Competitor in the nonwovens product line  **[0000915389-24-000016_emn-20231231.htm:21]** .
- **Lydall, Inc.** - Competitor in the nonwovens product line  **[0000915389-24-000016_emn-20231231.htm:21]** .
- **BorgWarner Inc.** - Competitor in the nonwovens product line  **[0000915389-24-000016_emn-20231231.htm:21]** .

0e252c5ea9671ef34319176c894d2147ffe23a7b99a27eef26da2a7d68c5ada3

| Name                  | Position                                                                 | Start Date        | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Mark J. Costa         | Chief Executive Officer and Chair of the Board                           | January 2014      | Mark J. Costa joined Eastman in June 2006 as Chief Marketing Officer. He became President and a member of the Board of Directors in May 2013, CEO in January 2014, and Board Chair in July 2014  **[0000915389-24-000016_emn-20231231.htm:45]** **[0001193125-23-080423_d467113ddefr14a.htm:19]** **[0001193125-23-076681_d385517ddef14a.htm:19]** .                                      |
| William T. McLain, Jr.| Executive Vice President and Chief Financial Officer                     | February 2020     | William T. McLain, Jr. joined Eastman in 2000. He became Corporate Controller in 2014, Vice President of Finance in 2016, and assumed his current position in February 2020. He also took on HR responsibilities in January 2023  **[0000915389-24-000016_emn-20231231.htm:45]** **[0000915389-23-000015_emn-20221231.htm:34]** .        |
| Stephen G. Crawford   | Executive Vice President, Manufacturing and Chief Sustainability Officer | October 2022      | Stephen G. Crawford joined Eastman in 1984. He served as VP of Global R&D until January 2014, became Senior VP and Chief Technology Officer in January 2014, and assumed his current role in October 2022  **[0000915389-24-000016_emn-20231231.htm:45]** **[0000915389-23-000015_emn-20221231.htm:34]** .                                 |
| Brad A. Lich          | Executive Vice President and Chief Commercial Officer                    | July 2016         | Brad A. Lich joined Eastman in 2001. He became Executive Vice President in January 2014 and assumed his current position in July 2016  **[0000915389-24-000016_emn-20231231.htm:45]** **[0000915389-23-000015_emn-20221231.htm:34]** .                                                                                                     |
| Kellye L. Walker      | Executive Vice President and Chief Legal Officer                         | April 2020        | Kellye L. Walker joined Eastman in April 2020. She has overall leadership responsibility for Eastman's legal organization and previously served as executive vice president and chief legal officer at Huntington Ingalls Industries  **[0000915389-24-000016_emn-20231231.htm:46]** **[0000915389-23-000015_emn-20221231.htm:35]** .     |
| Adrian J. Holt        | Senior Vice President and Chief Human Resources Officer                  | May 2023          | Adrian J. Holt joined Eastman in 2016 as Vice President, Global Talent Acquisition. He was appointed to his current position in May 2023  **[0000915389-24-000016_emn-20231231.htm:46]** .                                                                                                     |
| Christopher M. Killian| Senior Vice President and Chief Technology Officer                       | June 2021         | Christopher M. Killian joined Eastman in 1996 as a research chemist. He was appointed to his current position as Chief Technology Officer in June 2021  **[0000915389-24-000016_emn-20231231.htm:46]** .                                                                                       |
| Julie A. McAlindon    | Senior Vice President, Regions and Chief Supply Chain Officer            | June 2021         | Julie A. McAlindon joined Eastman in 2016 and was appointed to her current position in June 2021. She oversees global supply chain, sourcing, procurement, and regional leadership outside North America  **[0000915389-24-000016_emn-20231231.htm:46]** .                                     |
| B. Travis Smith       | Senior Vice President, Additives & Functional Products                   | October 2022      | B. Travis Smith joined Eastman in December 1992. He became Vice President and General Manager, Performance Films in July 2012 and assumed his current position in October 2022  **[0000915389-24-000016_emn-20231231.htm:46]** **[0000915389-23-000015_emn-20221231.htm:35]** .                                                            |
| Michelle R. Stewart   | Vice President, Chief Accounting Officer and Corporate Controller        | October 2021      | Michelle R. Stewart joined Eastman in 1995. She has served in various financial roles and was appointed to her current position in October 2021  **[0000915389-24-000016_emn-20231231.htm:46]** **[0000915389-23-000015_emn-20221231.htm:35]** .                                                                                           |
| Donald W. Slager      | Director                                                                  | May 27, 2024      | Donald W. Slager started serving as a director on May 27, 2024. The documents do not provide specific information about his committee memberships  **[0000915389-24-000176_xslF345X02/wk-form3_1717419660.xml:0]** .                                                                                            |

4aaf44dd61d42d0c9e9e25bb35a24d0dbf24bbb70c453351aee4b0e76e599413

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | December 2021  **[0000915389-24-000227_emn-20240930.htm:49]**   |
| End Date/Duration        | N/A                |
| Total additional amount  | **$2.5 billion**  **[0000915389-24-000227_emn-20240930.htm:49]**  |
| Remaining authorization amount | **$1.515 billion**  **[0000915389-24-000227_emn-20240930.htm:49]**  |
| Details                  | The program aims to return value to stockholders through dividends and share repurchases.  **[0000915389-23-000015_emn-20221231.htm:40]** **[0000915389-22-000039_emn-20220630.htm:49]** **[0000915389-23-000015_emn-20221231.htm:67]** **[0000915389-23-000015_emn-20221231.htm:126]** **[0000915389-24-000227_emn-20240930.htm:42]** **[0000915389-23-000170_emn-20230930.htm:46]** **[0000915389-23-000136_emn-20230630.htm:45]** **[0000915389-24-000192_emn-20240630.htm:40]** **[0000915389-24-000133_emn-20240331.htm:35]** **[0000915389-22-000051_emn-20220930.htm:51]**  |

3a3d4f618c05472ae7f49e63fc9404d02cd5d1865dda53cfcec5f0ebb34f68ac

b42af5f35becde802961dfc195090e3775a658905a8c694a548a28cc4af902e6

United States and Canada

Europe, Middle East, and Africa

Asia Pacific

Latin America

- United States

- All foreign countries

Total Revenue

691b9bf9a208a6c2feb1fbebfc0e41bc0be98f52089e74738796b302306f2fd9

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from Debt [USD, Millions]

Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

e27fa8fc5456e60bf9e595ef7cf3c5b922b2043aca7d94177fd8ab12ecf899dd

**Annual guidance for FY 2024:**
- **Methanolysis Facility EBITDA**: $20 million to $30 million  **[EMN_3405456_9]**  (no prior guidance)  
- **Free Cash Flow**: $100 million reduction  **[EMN_3405456_13]**  (no prior guidance)  
- **Capital Expenditures**: $625 million  **[EMN_3405456_13]**  (lowered from $650 million–$700 million  **[EMN_3394817_13]** )

**Annual guidance for FY 2025:**
- **Cost Savings**: above $75 million  **[EMN_3405456_2]**  (no prior guidance)

cd30706b89b7e90752d41440d749ceaa210839d03b4f25c6cec3dc44ca10fd12

- **Eastman's Circular Economy investments are driving substantial growth**, with an expected earnings contribution of **$75 million to $100 million** for the company in 2025, including **$50 million in Advanced Materials**. This demonstrates the company's innovation and strong strategy, enabling growth even in a flat market.  **[EMN_3413961_1]**
- **Operational improvements at the Kingsport methanolysis plant** have resulted in **85% DMP yield since the fall turnaround**, with uptime continuing to improve. The plant is now well-positioned for strong operating rates in 2025, contributing to higher production and reduced operational spend. This showcases Eastman's advanced technology and competitive advantage in producing high-quality virgin polymer from waste.  **[EMN_3413961_1]**
- **Eastman has secured multi-year contracts in its Fibers segment**, with about **80% of volume contracted in 2026** and approximately **70% contracted in 2027**, providing volume and price stability. This strategic move from annual to multi-year contracting with major customers enhances the predictability and resilience of the business.  **[EMN_3413961_7]**

41a45fe39eb4ea37d062da36f63f7a1a8ccd585e6ab36f237834a9507b200afc

- **Eastman's Fibers segment is facing multiple headwinds**, including the loss of a **high-value product** due to a customer design change, customer **destocking**, rising **energy costs**, and **currency impacts**, which could negatively affect future earnings.  **[EMN_3413961_17]**
- **Competitive pressure in the Chemical Intermediates segment**, especially in **acetyls** and **olefin products**, may impact Eastman's profitability despite plans to increase volumes through exports.  **[EMN_3413961_19]**
- **Macroeconomic conditions**, such as **weak demand** and **inflation**, are causing customers to **reduce the pace of adopting Eastman's circular products**, potentially delaying expected sales growth in this strategic area.  **[EMN_3413961_8]** **[EMN_3413961_18]**

56353e7dec8fc65b9a0d5d4016917d3870fd006421d3e9b7f98e510e5325e279

1. **Kingsport Methanolysis Plant Progress**  
   **Q:** How are sales and operations progressing at the Kingsport methanolysis plant?  
   **A:** The plant is running well, demonstrating continuous operational improvements with uptime improving and yields at **85%** since the fall turnaround.  **[EMN_3413961_1]**  Sales were slightly below expectations last year due to earlier operational issues limiting customer opportunities, but the company expects strong sales growth in 2025 as production increases and operational spend is reduced, positioning the plant for higher operating rates.  **[EMN_3413961_1]** 

2. **Fibers Segment Outlook**  
   **Q:** Can you provide context on the outlook for the Fibers segment in 2025?  
   **A:** The Fibers segment had a great year in 2024, but earnings are expected to normalize in 2025 due to customer inventory destocking, higher energy costs, currency headwinds, and the discontinuation of a profitable product because of a customer design change.  **[EMN_3413961_5]** **[EMN_3413961_17]**  While new capacity in China adds modest supply, the company believes the market remains stable with utilization in the low **90%** range and maintains over **80%** of customers under multiyear commitments through 2026.  **[EMN_3413961_7]** **[EMN_3413961_11]** 

3. **Texas Project and DOE Funding**  
   **Q:** Are there concerns about DOE funding for the Texas project under the new administration?  
   **A:** The company feels confident about the DOE funding, as the project is under contract and has already received initial funds.  **[EMN_3413961_2]**  They believe the project aligns with the administration's focus on growing U.S. manufacturing, reshoring jobs, and building supply chain resiliency.  **[EMN_3413961_2]**  The circular economy investment fits the agenda by creating jobs, reducing dependence on oil, and addressing plastic waste.  **[EMN_3413961_2]** 

4. **$50 Million Cost Reduction Plan**  
   **Q:** Where are the expected cost reductions of $50 million in 2025 coming from?  
   **A:** The cost reductions will be across all operating segments, focusing on improving operating costs beyond offsetting inflation.  **[EMN_3413961_10]**  This includes meaningful yield improvements, optimizing contractors and maintenance purchases, and optimizing the global asset base, such as the shutdown of an interlayer resin operations line in 2024.  **[EMN_3413961_10]** 

5. **Operating Cash Flow Guidance**  
   **Q:** Why is operating cash flow flat at $1.3 billion in 2025 despite earnings growth?  
   **A:** Operating cash flow is expected to remain flat due to higher cash taxes offsetting EBITDA growth.  **[EMN_3413961_12]**  The baseline expectation is that the cash conversion cycle for working capital will stay flat at around **85 days**.  **[EMN_3413961_12]** 

6. **Automotive Market Recovery**  
   **Q:** What are the expectations for auto builds recovery in the U.S. and Europe?  
   **A:** The company anticipates global automotive demand in 2025 to be slightly up or down, with Europe possibly up slightly and China potentially lower.  **[EMN_3413961_11]**  Despite a flat market, they are achieving growth through increased territory per car, more value per product, and new applications like laminated side windows and larger sunroofs in EVs.  **[EMN_3413961_11]** 

7. **Tariffs and Trade Concerns**  
   **Q:** Are there concerns about potential tariffs and their impact on exports?  
   **A:** The company acknowledges potential trade actions but notes that during the last trade event in 2019, they managed impacts well.  **[EMN_3413961_3]**  They believe that current weak global manufacturing limits the extent of aggressive tariff actions and that their forecast does not include significant impacts from trade actions.  **[EMN_3413961_3]** 

8. **Advanced Materials Outlook**  
   **Q:** Should we expect Advanced Materials earnings to be under the run rate in the first half due to higher costs?  
   **A:** There are several moving parts, including **$25 million** of costs shifting into Advanced Materials in Q1, increasing natural gas costs, and currency headwinds.  **[EMN_3413961_6]**  Cost benefits from reductions and growth in the circular economy will ramp up, particularly in the second half, positioning the segment for attractive results overall.  **[EMN_3413961_6]** 

9. **AFP Segment Strong Performance**  
   **Q:** Why did the Additives & Functional Products segment perform so well in Q4?  
   **A:** AFP had a strong quarter due to better-than-expected volume and mix, improved raw material costs, and successful management of commercial excellence and pricing.  **[EMN_3413961_4]** **[EMN_3413961_15]**  They leveraged innovation, defended volume, maintained price discipline, and managed costs effectively, resulting in earnings improvement.  **[EMN_3413961_4]** 

10. **Chemical Intermediates and Specialty Segments Correlation**  
    **Q:** Should we expect Chemical Intermediates to move in the same direction as specialties?  
    **A:** Historically, Chemical Intermediates tend to move opposite to specialties.  **[EMN_3413961_13]**  During periods of high demand and tight supply, commodity margins in Chemical Intermediates expand while specialties may face price pressures. The company continues to focus on innovation and portfolio diversity to balance stability.  **[EMN_3413961_13]** 

*Note: All citations refer to the indexed documents provided.*

229325fbc4373ae310dc7b6297e9f55d2c7c1493a640887bebc102ef643b6eed

EMN's Q4 2024 earnings highlight: Circular Economy investments set to deliver $75–$100M in 2025 (including $50M in Advanced Materials). Fibers secures ~80% volume into 2026 but faces near-term headwinds. Kingsport's 85% yield boosts future growth.

aeaecbf53d0b6a6ccbc3de968a4e486ab6c3e07da92250940965d7d57eafefdd

9d7d22d3ba012a849f468f4c39bed085755d7a30267ad46c62668c182d2ce1fb

**Annual guidance for 2025:**  
- **Fibers segment**: pricing remains strong (>80% of customers under commitments through 2026), with destocking and modest market declines of 1–2% (no prior guidance)  **[EMN_3413961_5]**   
- **Advanced Materials**: circular platform growth of $75M–$100M, with $50M contributed by Advanced Materials (no prior guidance)  **[EMN_3413961_1]**   
- **Cost reduction**: $50 million  **[EMN_3413961_10]**  (lowered from exceeding $75 million  **[EMN_3405456_2]** )  
- **Heat Transfer Fluids**: no significant tailwind in 2025 given capital delays, with growth anticipated in 2026 and beyond (no prior guidance)  **[EMN_3413961_21]**   

d83bd8f86bc1d1e74c351de1657d33c83b07a14ebf9eb7d28a06a33fa51f6d88

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 1993  **[0000915389-24-000016_emn-20231231.htm:84]**  | Present  | Current auditor   |

e7ab364db0807907c3591e2d2eb759f52b0cde18b09ace29c94285401eb7123a

b3cd438e11b444b17d642e953fd6f25354b88d79ca9ec192369ce572bf0dbfd8

c1dce80f67fb206245d5a1a95a61e6af23ff96a6c5c09019a27c1048a049be88

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $2,464 million  **[0000915389-24-000227_emn-20240930.htm:35]** **[0000915389-24-000227_emn-20240930.htm:36]** **[0000915389-24-000227_emn-20240930.htm:37]** **[0000915389-24-000227_emn-20240930.htm:38]** , +9% YoY from $2,267 million  **[0000915389-23-000170_emn-20230930.htm:30]**   
- Advanced Materials: $787 million  **[0000915389-24-000227_emn-20240930.htm:35]** **[0000915389-24-000227_emn-20240930.htm:36]** **[0000915389-24-000227_emn-20240930.htm:37]** **[0000915389-24-000227_emn-20240930.htm:38]** , +5.5% YoY from $746 million  **[0000915389-23-000170_emn-20230930.htm:30]**   
- Additives & Functional Products: $744 million  **[0000915389-24-000227_emn-20240930.htm:35]** **[0000915389-24-000227_emn-20240930.htm:36]** **[0000915389-24-000227_emn-20240930.htm:37]** **[0000915389-24-000227_emn-20240930.htm:38]** , +11% YoY from $670 million  **[0000915389-23-000170_emn-20230930.htm:30]**   
- Chemical Intermediates: $593 million  **[0000915389-24-000227_emn-20240930.htm:35]** **[0000915389-24-000227_emn-20240930.htm:36]** **[0000915389-24-000227_emn-20240930.htm:37]** **[0000915389-24-000227_emn-20240930.htm:38]** , +12% YoY from $527 million  **[0000915389-23-000170_emn-20230930.htm:30]**   
- Operating Income (EBIT): $329 million  **[0000915389-24-000227_emn-20240930.htm:4]** , +29% YoY from $256 million  **[0000915389-23-000170_emn-20230930.htm:4]**   
- **Net Income: $18 million  **[0000915389-24-000227_emn-20240930.htm:4]** , -90% YoY from $178 million  **[0000915389-23-000170_emn-20230930.htm:4]** **  
- United States & Canada: $1,032 million  **[0000915389-24-000227_emn-20240930.htm:38]** , +7% YoY from $966 million  **[0000915389-23-000170_emn-20230930.htm:43]**   
- Asia Pacific: $653 million  **[0000915389-24-000227_emn-20240930.htm:38]** , **+13% YoY** from $576 million  **[0000915389-23-000170_emn-20230930.htm:43]**   

e2b33f4668130460fe3b5f7b6277de2d6872014f1109c82a51099897006911a1

| Year | Amount Due (in millions) | Debt Type                          | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|----------------------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2025     | $448                         | 3.80% Notes                           | 3.80                  | 8.8% = (448 / 5100) * 100  **[0000915389-24-000227_emn-20240930.htm:41]** **[0000915389-24-000227_emn-20240930.htm:11]**  **[0000915389-24-000227_emn-20240930.htm:10]**                                      |
| 2026     | $558                         | 1.875% Notes                          | 1.875                 | 10.9% = (558 / 5100) * 100  **[0000915389-24-000227_emn-20240930.htm:41]** **[0000915389-24-000227_emn-20240930.htm:11]**  **[0000915389-24-000227_emn-20240930.htm:10]**                                     |
| 2027     | $445                         | 7.60% Debentures + 2027 Term Loan     | 7.60                  | 8.7% = (445 / 5100) * 100  **[0000915389-24-000227_emn-20240930.htm:41]** **[0000915389-24-000227_emn-20240930.htm:11]**  **[0000915389-24-000227_emn-20240930.htm:10]**                                      |
| 2028     | $496                         | 4.5% Notes                            | 4.5                   | 9.7% = (496 / 5100) * 100  **[0000915389-24-000227_emn-20240930.htm:41]** **[0000915389-24-000227_emn-20240930.htm:11]**  **[0000915389-24-000227_emn-20240930.htm:10]**                                      |
| 2029     | $495                         | 5.0% Notes                            | 5.0                   | 9.7% = (495 / 5100) * 100  **[0000915389-24-000227_emn-20240930.htm:41]** **[0000915389-24-000227_emn-20240930.htm:11]**  **[0000915389-24-000227_emn-20240930.htm:10]**                                      |
| 2033     | $496                         | 5.75% Notes (Green Bond)              | 5.75                  | 9.7% = (496 / 5100) * 100  **[0000915389-24-000227_emn-20240930.htm:41]** **[0000915389-24-000227_emn-20240930.htm:11]**  **[0000915389-24-000227_emn-20240930.htm:10]**                                      |
| 2034     | $743                         | 5.625% Notes                          | 5.625                 | 14.6% = (743 / 5100) * 100  **[0000915389-24-000227_emn-20240930.htm:41]** **[0000915389-24-000227_emn-20240930.htm:11]**  **[0000915389-24-000227_emn-20240930.htm:10]**                                     |
| 2042     | $495                         | 4.8% Notes                            | 4.8                   | 9.7% = (495 / 5100) * 100  **[0000915389-24-000227_emn-20240930.htm:41]** **[0000915389-24-000227_emn-20240930.htm:11]**  **[0000915389-24-000227_emn-20240930.htm:10]**                                      |
| 2044     | $878                         | 4.65% Notes                           | 4.65                  | 17.2% = (878 / 5100) * 100  **[0000915389-24-000227_emn-20240930.htm:41]** **[0000915389-24-000227_emn-20240930.htm:11]**  **[0000915389-24-000227_emn-20240930.htm:10]**                                     |

be1b7b4e7cf84bb5b5897e5b0da29d8d1ac344b07e7791e209b4c6787ff06501

- **Eastman's methanolysis plant is operational and ramping up production**, making on-spec plastic from waste feedstock; this world's largest chemical recycling facility will contribute to earnings growth in the second half of the year.  **[EMN_3394817_1]** **[EMN_3394817_9]** **[EMN_3394817_3]**
- **The Aventa business is performing well**, with meaningful commercial sales this year and **expectations for a significant increase next year**. It has the potential to be **bigger than the Naia business**, with **margins better than the company average**, upgrading corporate earnings.  **[EMN_3394817_20]**
- **Strong growth in Advanced Materials driven by innovation and the ramp-up of the methanolysis plant**, leading to **better-than-typical performance in the fourth quarter**.  **[EMN_3394817_21]** **[EMN_3394817_1]** **[EMN_3394817_9]**

fd612b512a83aa060edf45d062c7d6b1099f42a5263cecd661be7a3070c6216b

d9ce7b32ad2a443b4bcebc08cb6495e59ca350efc04b9633da9ce2acb3bf462c

- **Eastman expects significant earnings improvement in 2024**, driven by the end of destocking—which accounted for about 40% of the volume decline in 2023—and contributions from innovation such as the **Kingsport methanolysis plant adding an incremental $75 million in EBITDA**, while **maintaining cost discipline**.  **[EMN_3362661_1]**
- The **Fibers segment has surpassed expectations**, with 2023 EBIT projected to be over **$410 million** compared to the initial estimate of **$275 million**, due to improved contract structures, pricing, and operational efficiencies. Management is confident in the **sustainability of these earnings**.  **[EMN_3362661_13]**
- Eastman is making strong progress in its **circular recycling initiatives**, with the **Kingsport methanolysis plant starting up**. Customers are paying the necessary premiums, and costs are performing **a little better than expected**, positioning the company for growth and margin expansion in sustainable materials.  **[EMN_3362661_22]** **[EMN_3362661_24]**

ffb322c66ac034e05b16db0f3c8d51e0ecdd9fa6f158d4dc7bfcfd7c32a50d9a

- **Eastman expects significant earnings growth from its methanolysis recycling plants**, with the Kingsport facility ramping up and projected to generate over **$150 million in annual EBITDA**, driving recovery in the Advanced Materials segment.  **[EMN_3371826_3]** ,  **[EMN_3371826_19]** ,  **[EMN_3371826_7]**
- **The Fibers segment is positioned for stable and improved earnings**, backed by **long-term contracts for sig tow** and growth from innovative products like **Aventa, a biodegradable alternative to polystyrene**, opening new market opportunities.  **[EMN_3371826_14]**
- **The company anticipates volume recovery and improved utilization in 2024 due to the end of destocking and stabilization in key markets**, leading to better fixed cost leverage and earnings growth, particularly in the Advanced Materials segment.  **[EMN_3371826_4]** ,  **[EMN_3371826_7]** ,  **[EMN_3371826_23]**

fde1d65806be7ea5e8872ddb9d3a71f19f5c46ae09cbfd0d11cf8d88566f0e11

1. **Methanolysis Plant Issues**  
   **Q:** Can you detail the methanolysis plant's feedstock issues?  
   **A:** Mark Costa explained that during the ramp-up of the methanolysis plant, they encountered plugging issues due to feedstock preparation, specifically impurities in the hard-to-recycle feedstock. These issues were addressed by optimizing the feedstock form and dealing with non-polymer waste from a few suppliers. The plant has been running at sustained rates of around **70%**, and they are implementing changes to ramp up to full rates. Costa emphasized that they are making on-spec product and are excited to serve customers as volumes increase in the back half of the year.  **[EMN_3394817_1]** 

2. **Tritan Expansion Timing**  
   **Q:** Why proceed with Tritan expansion now despite macro pressures?  
   **A:** Mark Costa stated that despite weakness in consumer durables, they have seen significant volume return due to the end of destocking and continued wins with Tritan's value proposition, including recycled content. Customers are paying the expected premiums, and new markets are opening up. They see the need for additional capacity to avoid shorting the market and believe this is the right time to proceed, anticipating market recovery.  **[EMN_3394817_2]** 

3. **Full Year Guidance**  
   **Q:** Given the Q2 beat, why is full-year guidance midpoint unchanged?  
   **A:** William McLain explained that while they beat Q2 expectations by **$0.15**, they maintained the midpoint of the full-year guidance due to adjustments, including a reduction in methanolysis expectations. They are driving strong year-over-year growth of **20%**, and narrowing the guidance range was appropriate. Mark Costa added that demand remains the biggest variable, and they are assuming no end-market growth for consumer discretionary markets, with modest growth in stable markets.  **[EMN_3394817_5]** 

4. **Acetyl Chain Shutdown Impact**  
   **Q:** Can you clarify the acetyl chain shutdown and price/cost issues?  
   **A:** William McLain noted that higher planned shutdowns in the acetyl cellulosic stream will occur in Q3, representing about half of the **$50 million** maintenance expense, with the other half in Q4. The divestiture of the Texas City acetyl operations has closed and represents a **$30 million** headwind year-over-year. Mark Costa added that unfavorable price/cost in acetyls is due to lower margins and adjustments in logistics costs after the divestiture.  **[EMN_3394817_6]** 

5. **Customer Adoption of Renew Products**  
   **Q:** What factors are affecting Tritan Renew's slower adoption?  
   **A:** Mark Costa mentioned that while customers are committed to Tritan Renew, the tough economic environment and inflation have led to a slower ramp-up of some programs. Companies are focused on managing costs, affecting the rate of volume growth. However, he expects no impact on next year's growth, aiming for a run rate of **$150 million** of EBITDA by the end of next year from the circular platform.  **[EMN_3394817_4]** 

6. **Other Segment Losses**  
   **Q:** Why is the 'Other' segment now losing $200 million annually?  
   **A:** William McLain explained that the increase from **$50 million** to **$200 million** in losses is primarily due to a **$100 million** headwind from pension accounting impacts related to higher interest rates. Additionally, increased preproduction and start-up costs for methanolysis and circular platforms contribute to the losses. As projects come online, these expenses should decrease, and interest rate changes could provide future tailwinds.  **[EMN_3394817_7]** 

7. **Capital Expenditure Reduction**  
   **Q:** Why has CapEx guidance been reduced despite new projects?  
   **A:** William McLain stated that CapEx guidance has been lowered to **$650 million to $700 million** due to timing shifts in the France and Texas methanolysis projects. They are balancing growth investments with current project timelines and have increased share repurchases to **$300 million** to avoid excess cash on the balance sheet.  **[EMN_3394817_13]** 

8. **Interlayers Business Growth**  
   **Q:** How is the interlayers business performing?  
   **A:** Mark Costa reported that the interlayers business, about **one-third** of Advanced Materials revenue, is delivering meaningful earnings growth despite flat auto markets. Growth is driven by innovation, with products like head-up displays (HUD) and solar control interlayers seeing volume increases of **20%** and **12%** year-over-year, respectively. The business benefits from exposure to luxury and electric vehicles, which have higher content per vehicle.  **[EMN_3394817_14]** 

9. **Advanced Materials Volume Trajectory**  
   **Q:** What's the outlook for Advanced Materials volume growth?  
   **A:** Mark Costa expects volume growth in Advanced Materials due to the ramp-up of methanolysis in Q3 and Q4, continued innovation, and application wins. While some seasonality is expected in Q4, overall volume should improve. Spread tailwinds from lower energy costs are anticipated, though higher shutdown costs of about **$25 million** in the back half will partially offset gains.  **[EMN_3394817_21]** 

10. **French Methanolysis Project Status**  
    **Q:** What's the status of the methanolysis project in France?  
    **A:** Mark Costa indicated that progress on the France project has been slower due to extended customer contract discussions and capital cost inflation. They insist on securing long-term take-or-pay contracts before proceeding. They hope to have clarity by the end of the year and remain committed to their long-term EBITDA target of **$450 million** across their circular economy projects.  **[EMN_3394817_12]** 

51f24f83f87b5f8b9d4730fabe4d79c59b2d61f8f8e67fab865f3fe8e72b42b4

- **Declining Volumes in the Fibers Segment**: Management indicated that the Fibers segment is expected to see a decrease in volume and earnings in the second half of the year. Specifically, they mentioned that "volume and earnings will be a little bit less in the back half of the year," attributing this to unpredictable customer order patterns. This anticipated decline could negatively impact overall performance.  **[EMN_3381287_21]** ,  **[EMN_3381287_8]**
- **Cautious Full-Year Outlook Despite Strong Q1**: Despite a strong start to the year with a volume-driven beat in the first quarter, the company did not raise its full-year guidance. Management cited "a lot of macroeconomic uncertainty" and "geopolitical uncertainty" as reasons for maintaining the current guidance. This caution may suggest concerns about future demand and potential risks to meeting earnings expectations.  **[EMN_3381287_3]**
- **Delays in Securing Contracts for the France Methanolysis Plant**: The company acknowledged that it's taking longer than expected to negotiate customer contracts for the France methanolysis plant. Management expressed confidence in eventual agreements but admitted that these delays could impact the timing of growth plans and returns on investment for this significant project.  **[EMN_3381287_6]**

0a5ece614c72588dade353b4537d02886231f31aceb35f7eac03eca19e332b97

- **Eastman Chemical expects significant growth in Advanced Materials, with strong recovery in durables and new application wins, leading to attractive margins and earnings growth.**  **[EMN_3381287_12]** ,  **[EMN_3381287_9]** ,  **[EMN_3381287_11]**
- **The company's methanolysis plant is expected to add $150 million to $200 million of EBITDA, contributing to earnings growth in 2025 and beyond.**  **[EMN_3381287_18]** ,  **[EMN_3381287_11]**
- **Management is confident in achieving 10% EPS growth going forward, with upside from volume recovery in key markets, including growth in Additives & Functional Products, Advanced Materials, stability in Fibers, and recovery in discretionary markets.**  **[EMN_3381287_19]** ,  **[EMN_3381287_11]** ,  **[EMN_3381287_15]**

87e8351aaa4cea460c487a987e9f6c723f94134a221d9022ee5f9317cb91057b

- **Operational challenges and delays at the methanolysis plant, including mechanical issues and feedstock preparation problems, have limited production rates to around 70%, with full capacity yet to be achieved.**  **[EMN_3394817_3]** **[EMN_3394817_18]**
- **The "Other" segment is experiencing increased losses, rising from approximately $50 million to a couple hundred million dollars per year, due to higher pension expenses and increased preproduction and start-up costs related to new projects like methanolysis and circular platforms.**  **[EMN_3394817_7]**
- **Slower than expected adoption of high-margin products such as Tritan Renew due to tough economic conditions and inflation impacting consumer demand, leading to reduced expectations for incremental EBITDA from $75 million down to $50 million for the year.**  **[EMN_3394817_19]**

03b511e49b2e5d2d875f3e17f93fd2846a92edf5aeed53a5a14abf2f84b48779

1. **France Project Delays**  
   **Q:** What's causing delays in the France methanolysis project?  
   **A:** The French project is delayed due to regulatory uncertainties and the need to secure customer contracts under the current EU policies.  **[EMN_3381287_1]**  We're also working to manage **inflation-driven CapEx increases**.  **[EMN_3381287_1]**  It's taking longer to negotiate contracts, but we remain confident the project should proceed.  **[EMN_3381287_6]** 

2. **Kingsport Methanolysis Plant**  
   **Q:** How is the Kingsport methanolysis plant ramping up?  
   **A:** The Kingsport plant is operational, confirming that the **process chemistry works**.  **[EMN_3381287_4]**  We're addressing mechanical issues from construction errors and equipment failures caused by supply chain challenges.  **[EMN_3381287_4]**  Despite being about **four weeks behind schedule**, we still aim for **$75 million** EBITDA contribution this year.  **[EMN_3381287_4]** 

3. **Guidance and Outlook**  
   **Q:** Why not raise full-year guidance after a strong Q1?  
   **A:** Despite the **Q1 beat**, we're maintaining guidance due to ongoing **macroeconomic and geopolitical uncertainties**.  **[EMN_3381287_3]**  Our forecast assumes an economy-neutral stance without projecting improvements or deteriorations in the second half.  **[EMN_3381287_3]** 

4. **Long-term Earnings Potential**  
   **Q:** What's the outlook for future earnings growth?  
   **A:** We're on track to exceed **$2 billion** in EBITDA, with potential to reach **$2.4 billion** by adding **$150–$200 million** from the Kingsport plant.  **[EMN_3381287_19]**  Further upside comes from the Longview and France projects, and growth in Advanced Materials and AFP as markets recover.  **[EMN_3381287_19]** 

5. **Customer Commitment to Recycling**  
   **Q:** Are brands committed to recycled content?  
   **A:** Customers are highly committed, with many aiming for **100% recycled content goals**.  **[EMN_3381287_6]**  However, the availability of affordable R-PET imports has affected the pace of contract negotiations for our projects.  **[EMN_3381287_6]**  We believe brands will focus on local recycling solutions in the end.  **[EMN_3381287_6]** 

6. **Capital Allocation Strategy**  
   **Q:** How will you fund upcoming projects?  
   **A:** We have the balance sheet and cash flow to fund our projects without taking on additional debt.  **[EMN_3381287_18]**  Projects may be staggered naturally, and we're confident in maintaining a strong investment-grade balance sheet while investing in growth and returning cash to shareholders.  **[EMN_3381287_18]** 

7. **Advanced Materials Growth**  
   **Q:** What's the growth outlook for Advanced Materials?  
   **A:** We're seeing recovery after a challenging period, expecting to surpass **2021 levels** and continue growing in **2025 and 2026**.  **[EMN_3381287_12]**  Growth drivers include the Kingsport plant ramp-up, innovations in Specialty Plastics, and ongoing wins in automotive.  **[EMN_3381287_12]** 

8. **Longview Project Timeline and Costs**  
   **Q:** When will the Longview project start, and how do costs compare?  
   **A:** If we reach FID in Q3, the Longview plant will come online in the **second half of 2027**.  **[EMN_3381287_8]**  The methanolysis unit will be **much cheaper** than Kingsport due to design improvements, but overall capital costs are higher as we're building new infrastructure.  **[EMN_3381287_8]** 

9. **Volume Recovery and Destocking**  
   **Q:** How is volume recovery progressing?  
   **A:** Stable end markets are growing modestly, but discretionary markets like building and construction remain challenged and are below **2019 levels**.  **[EMN_3381287_16]**  We're not assuming market growth this year; any recovery in these markets represents upside for **2025 and 2026**.  **[EMN_3381287_16]** 

10. **Operating Expenses for France Project**  
    **Q:** Will importing feedstock elevate France project's OpEx?  
    **A:** Aggregating feedstock from across Europe is appropriate for this large-scale project.  **[EMN_3381287_20]**  Logistics costs are factored into our economics and aren't significant per kilogram.  **[EMN_3381287_20]**  We aim to source the remaining **30%** of feedstock from within France.  **[EMN_3381287_20]** 

4b7a4154d8d977f939a8e74b0d309e8201a7cb62d141457caf4c64ef231f663a

- **Advanced Materials segment EBIT is expected to fall below $400 million in 2023**, the lowest since 2014, following a difficult 2022, indicating ongoing challenges and a reliance on significant market improvement for recovery.  **[EMN_3362661_3]**
- **Increasing raw material costs**, including methanol, ammonia, and propylene, are **impacting margins in the Additives & Functional Products (AFP) segment in Q4 2023**, posing a challenge to profitability.  **[EMN_3362661_15]**
- **Continued destocking in key markets like crop protection and medical** is expected to impact **Q4 2023 results**, with uncertain timing of recovery in 2024, potentially delaying volume and earnings improvement.  **[EMN_3362661_2]** **[EMN_3362661_20]**

5802ddf293136644c4324c5be3c248a895bd94bf3e4fc8f0e4690b92b8aafe4b

1. **2025 Growth Outlook**  
   **Q:** What does modest underlying growth and innovation mean for 2025 volumes?  
   **A:** Eastman expects **modest market growth**, accelerated by innovation, leading to a **substantial EPS improvement** in 2025.  **[EMN_3405456_1]** 

2. **Methanolysis EBITDA Impact**  
   **Q:** How will challenges in methanolysis affect EBITDA next year?  
   **A:** About **two-thirds** of the EBITDA shortfall is due to startup costs from low uptime, and **one-third** from lower volumes due to slower product launches; improvements are expected next year.  **[EMN_3405456_9]** 

3. **Cost Savings Plans**  
   **Q:** Where are you cutting costs beyond productivity, and impact in '25?  
   **A:** Eastman is optimizing operations and product complexity, shutting down certain facilities, and improving energy efficiency to drive costs **below inflation**, positively impacting 2025.  **[EMN_3405456_2]** 

4. **Texas Plant Update**  
   **Q:** What's different about the Texas plant compared to Kingsport?  
   **A:** The Texas plant incorporates Kingsport learnings for **lower construction costs**; it includes added scope like new polymer lines and decarbonization efforts, supported by **$375 million DOE funding** and **$70 million Texas tax breaks**, aiming for a **12% return**.  **[EMN_3405456_5]** 

5. **France Project Status**  
   **Q:** What's the latest on the France methanolysis project?  
   **A:** Progress is made on feedstock sourcing and permits, but lacking customer contracts due to EU policy uncertainties; the project is on hold until contracts are secured.  **[EMN_3405456_11]** 

6. **Fibers Business Outlook**  
   **Q:** How are new capacities affecting Fibers, and any asset repurposing?  
   **A:** Eastman expects Fibers to stay **stable over the next three years**; they're repurposing assets to support Naia™ textile growth and **Aventa™** food packaging; customer focus remains on supply security.  **[EMN_3405456_4]** 

7. **2025 Operating Leverage**  
   **Q:** Will operating leverage benefits continue into 2025?  
   **A:** Eastman anticipates further operating leverage in 2025, particularly from stable operations at Kingsport methanolysis, which will contribute to earnings growth.   

8. **Inventory Build and Cash Flow**  
   **Q:** Why reduce free cash flow due to strategic inventory build?  
   **A:** Building inventory in polyester and cellulosics to prepare for 2025 growth, while being capital efficient; this supports new product launches like **Aventa™**.  **[EMN_3405456_14]** 

9. **Advanced Materials Demand**  
   **Q:** What's happening with demand and margins in Advanced Materials?  
   **A:** Auto interlayers see **high single-digit volume growth**, outperforming the market due to trends like larger sunroofs and laminated side windows; films are growing but not as fast; Specialty Plastics has modest growth.  **[EMN_3405456_15]** 

10. **Volume/Mix Improvements**  
    **Q:** Where did you see the 4% sequential volume/mix growth in Q3?  
    **A:** Growth came from heat transfer fluids and coatings globally in AFP; AM was flat but Tritan™ performed well; Chemical Intermediates sold more volume after plant shutdowns.  **[EMN_3405456_8]** 

640b96db554ef33a6849cef06771b4d4bf99587ef83197995d8aa37bff68d551

- **Eastman expects primary demand in discretionary markets to remain at last year's low levels, with no meaningful improvement anticipated**, indicating continued weakness in key markets.  **[EMN_3371826_4]**
- **Modest spread compression is expected in the Additives & Functional Products (AFP) segment due to cost pass-through contracts and lag effects**, which may negatively impact margins in 2024.  **[EMN_3371826_4]**
- **Volume recovery is projected to be slow, with significant improvement not anticipated until the second quarter or later**, and continued destocking is affecting first quarter results, which may impact earnings in the near term.  **[EMN_3371826_15]** **[EMN_3371826_10]**

989a97e84503817a8d0b95dc9db931b610c34eb2b0a94203ac39b54abef07657

1. **Methanolysis Plant EBITDA Impact**  
   **Q:** What is the expected EBITDA contribution from the methanolysis plant in 2025?  
   **A:** Eastman anticipates that the methanolysis facility will generate over **$150 million** in annual EBITDA by 2025 if the startup and ramp-up proceed smoothly.  **[EMN_3371826_19]** 

2. **CapEx and Inflation for Plants 2 and 3**  
   **Q:** How are you managing CapEx estimates amid inflation for plants 2 and 3?  
   **A:** Despite inflation raising capital costs, Eastman plans to control CapEx by replicating the same plant design, incorporating learnings from Kingsport, and securing incentives in France and the U.S. The projects are still expected to deliver returns above **12%** even with higher costs.  **[EMN_3371826_9]** 

3. **Advanced Materials Segment Upside Potential**  
   **Q:** Is there a path to $500 million or more EBITDA in Advanced Materials?  
   **A:** With volume recovery, the end of destocking, seasonal demand returning, and the methanolysis plant adding **$50 million** in EBITDA, there's potential to exceed the **$450 million** guidance. Management is cautiously optimistic but prefers to see market recovery first.  **[EMN_3371826_7]** 

4. **Pricing and Margin Outlook**  
   **Q:** How is Eastman's pricing ability and margin outlook for 2024?  
   **A:** Eastman expects to maintain margins in Advanced Materials (AM) and Additives & Functional Products (AFP), with spreads similar to last year. Modest price reductions may occur due to improved raw material and energy costs, but volume recovery and capacity utilization are key earnings drivers.  **[EMN_3371826_5]** 

5. **Destocking Impact and Demand Stabilization**  
   **Q:** Are you seeing demand stabilization and end of destocking?  
   **A:** Destocking appears to be over in many markets, providing a tailwind of about **$150 million**, with **2/3** of that in Advanced Materials. Primary demand is stabilizing, and normal seasonal patterns are expected to improve volumes starting in the second quarter.  **[EMN_3371826_4]** 

6. **Timing of Methanolysis Plants 2 and 3**  
   **Q:** When will plants 2 and 3 be operational?  
   **A:** Construction on plant 2 in France is expected to begin in late summer, with operational start dates around **2027**. Eastman aims to incorporate learnings from Kingsport before proceeding.  **[EMN_3371826_11]** 

7. **Fibers Contracts and Earnings Visibility**  
   **Q:** How much visibility do you have into Fibers contracts' pricing and cost through 2026?  
   **A:** Eastman has contracts covering both price and cost for **90%** of 2025 and **70%** of 2026 volumes. Pricing adjusts based on energy and raw material changes, providing confidence in earnings stability.  **[EMN_3371826_20]** 

8. **EV Market Exposure and Growth**  
   **Q:** Is the outperformance in EV-related products decelerating in 2024?  
   **A:** While year-over-year improvement may be slightly less due to slower EV growth, Eastman continues to win new applications and penetrate EV accounts. Growth in premium products remains meaningful, helping the company outperform a flat automotive market.  **[EMN_3371826_8]** 

9. **Productivity Gains Outlook**  
   **Q:** Can you achieve further productivity gains in 2025–2026?  
   **A:** Eastman expects ongoing productivity gains to offset inflation but not significant additional step-ups. The focus will be on volume recovery and fixed-cost leverage in specialty products to drive earnings growth.  **[EMN_3371826_23]** 

10. **M&A Landscape**  
    **Q:** Are you more incentivized to pursue M&A targets now?  
    **A:** Eastman remains disciplined and is focused on executing its organic growth program. However, there may be better opportunities for bolt-on acquisitions in AFP and AM as the business environment improves.  **[EMN_3371826_24]** 

e27cfeabcb7fe053118e55314ba5e2171fd486855b16a2f02ac670e5ca1672f6

Eastman Chemical Co (EMN)

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