EFTA01461989.pdf

29July 2014 Chemicals / Specialty Eastman Chemical Figure 15: Eastman Annual Cash Flow Statemy 2011 2012 2013 O1A O2A 2014E 2015E Operating Activities: Adjustments to Reconcile Net Income to Cash From Operations Net Income $696 $444 $1,172 4234 $294 41,046 51.138 Depreciation and Amortization 273 380 433 107 110 445 465 Deferred Income Taxes 11 48 331 32 29 185 185 Mark-to-Market Pension &0PEB (Gains) Losses 247 (383) Pension and OPEB Contributions in Excess of Expenses 197) (14e) (121 (331 1135) l'35 Variable Compensation in Excess of Expenses 26 82 (93) 40 Asset Impairment Charges 46 28 8 0 (Gain) Loss On Sale of Assets/Investments (70) Other 0 (5) Change in Operating Assets and Liabilities Working Capital (Increases) (370) 96 (46) (255) (34) (71 150) Other 85 (42) (171) (511 18 4125) ( 1.25) Cash Flow From Operations 625 1,128 1,297 1301 419 1,408 1.478 Free Cash Flow Cash FlowFrom Operations 625 1,128 1,297 (301 419 1,408 1,478 Less: Capital Expenditures (457) (465) (483) (122) 4132) 4575) (600) Free Cash Flow 168 663 814 (152) 287 833 878 Less: Dividends (136) (192) 1. 40` 4531 453) (212) 1228) Free Cash Flow (EMN Definition) 32 471 674 .2'; ? 234 621 652 Investing Activities: Capital Expenditures (467) (465) (483) (122) 1132) 45751 (600) Acquisitions (156) (2.669) 1283) 4370) Proceeds from Sale of Assets &Investments 651 207 31 4 8 Additions to ShoffiTerm Time Deposits (200) Additions to Capitalized Sofmere 49) (5) (5) (1) Other 29 (30) 2 Total Investing Activities (142) 12.962) (457) (119) (405) (946) (600) Financing Activities: Inc. (DKr.) in UT Debt 42) 1,645 (955) 125 366 249 Inc. (Decr.l in S/T Debt 1 (1) 425 267 42311 Dividends (136) (192) (140) (531 (53) (2121 (226) Purchase of Treasury Stock (316) (238) (280) 4100) 4500) (600) Dividends Paid to Noncom:oiling Interets (10) (3) (6) Proceeds from Stock Option Exercises 32 (21 Other 30 52 59 Total Financing Activities (423) 1,504 (859) 98 (27) 14631 (826) Effect of Exchange Rate Changes on Cash 1 2 7 (1) 3 Increase (Decrease/ in Cash 61 (328) (12) (52) (10) 0 52 Settee Deinee Bank eavnyres. reemel Page 12 Deutsche Bank Securities Inc. CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0124319 CONFIDENTIAL SDNY_GM_00270503 EFTA01461989