EFTA01462062.pdf

29July 2014 Chemicals / Specialty Eastman Chemical Figure 15: Eastman Annual Cash Flow Staterne, 2011 2012 2013 01A 02A 2014E 2015E Operating Activities: Adjustments to Reconcile Net Income to Cash From Operations Net Income $696 $444 $1,172 4234 $294 31,046 51.138 Depreciation and Amortization 273 360 433 107 110 445 465 Deferred Income Taxes 11 48 331 32 29 185 185 Mark-to-Market Pension &OPEB (Gains) Losses 247 (383) Pension and OPEB Contributions in Excess of Expenses 197) (14e) (121 (33) 1126' Variable Compensation in Excess of Expenses 26 82 (931 40 Asset Impairment Charges 45 28 8 0 (Gain) Loss On Sale of Assets/Investments (70) Other o (, Change in Operating Assets and Liabilities Working Capital (Increases) (370) 96 (46) (255) (34i ;71 (501 Other 85 (42) (171) (511 18 1125) ( 1.25) Cash Flow From Operations 625 1,128 1,297 (301 419 1,408 1.478 Free Cash Flow Cash Flow From Operations 625 1,128 1,297 (301 419 1,408 1,478 Less: Capital Expenditures (457) (465) (483) (122) (1321 4575) (600) Free Cash Flow 168 663 814 (152) 287 833 878 Less: Dividends (136) (192) 1. 40` (531 453) (212) 1228) Free Cash Flow (EMN Definition) 32 471 674 .2':1•4 234 621 652 Investing Activities: Capital Expenditures 1457) (465) (483) (122) 1132) 45751 (600) Acquisitions (156) (2,669) 1283) (370) Proceeds from Sale of Assets & Investments 651 207 31 4 8 Additions to Short•Term Time Deposits (200) Additions to Capitalized Sothnere (9) (5) (5) (1) Other 29 (30) 2 Total Investing Activities (142) 12.962) (457) (119) 14051 (945) (600) Financing Activities: Inc. (Deer.) in L/T 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) 12121 (226) Purchase of Treasury Stock (315) (238) (280) POD) (500) (600) Dividends Paid to Noncontrolling Interets (10) (3) (6) Proceeds kern 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) (521 (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-0124410 CONFIDENTIAL SDNY_GM_00270594 EFTA01462062