EFTA01462058.pdf

29July 2014 Chemicals / Specially Eastman Chemical Figure 1 I: Eastinan Annti.)I I I ICOt fF ri nt 201 i 5F!5.; in 2011 2012 2013 2014E 2015E Sales 7,178 8,102 9,350 9,533 9,915 % Change 17% 13% 15% 2% 4% Cost of Sales (5.538) (5,978) (6,939) (7,068) (7,272) Gross Profit 1,640 2,124 2,411 2,465 2,643 Gross Margin 22.8% 26.2% 25.8% 25.9% 26.7% % Change 8% 30% 74% 2% 7% Selling & Administrative (469) (607) (624) (625) (645) SG&A/Sates 6.5% 7.5% 6.7% 6.6% 6.5% % Change 4% 29% 3% 0% 3% Research & Development (158) O98) (196) (210) (218) R&D/Sales 2.2% 2.4% 2.1% 2.2% 2.2% %Change (1%) 25% (1%) 7% 4% (S&A+R8O)/Sales 8.7% 9.9% 8.8% 8.8% 8.7% Operating Profit 1,013 1,319 1,591 1,630 1,780 Operating Margin 14.1% 16.3% 77.0% 17.1% 78.0% %Change 11% 30% 21% 2% 9% EBITDA 1,305 1,689 2,021 2,086 2,245 Operating Margin 78.2% 20.8% 21.6% 27.9% 22.6% %Chan e 17% 29% 20% 3% 8% Interest Expense (76) 1134) (180) (181) (188) % Change (23%) 76% 34% 7% 4% Other Income/Expense 19 10 (3) 11 0 Pretax Income 956 1,195 1,408 1,460 1,592 Pretax Margin 13.3% 74.7% 75.1% 15.3% 16.1% % Change 20% 25% 18% 4% 9% Taxes (304) 1391) (393) (407) (446) Tax Rate 31.8% 32.7% 27.9% 27.9% 28.0% Net Income Attributable to Noncontrolling Interests 0 (2) (7) (71 (8) Net Income 652 802 1,008 1,046 1,138 Net Margin 9.1% 9.9% 70.8% 11.0% 11.5% % Change 24% 23% 26% 4% 9% Basic Shares Outstanding 139.7 145.5 154.0 149.4 145.4 % Change (3%) 4% 6% (3%1 (3%) Diluted Shares Outstanding 143.0 148.9 156.5 151.5 147.8 % Change (3%) 4% 5% (3%) (2%) Basic EPS $4.66 $5.51 $6.55 $7.00 $7.83 % Change 28% 18% 79% 7% 12% Diluted EPS $4.56 $5.39 $6.44 $6.90 $7.70 % Change 28% 18% 20% 7% 12% :court. Deuracke Itn•A 1.5traf Page 8 Deutsche Bank Securities Inc. CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0124406 CONFIDENTIAL SDNY_GM_00270590 EFTA01462058