Innovation Day 2018

Lucian BoldeaSenior Vice President, Additives & Functional Products

During these presentations, 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. Throughout these presentations, “F” is used to indicate projected, or “forecasted”, amounts. See Eastman’s most recent

Form 10-K and 10-Q filings with the Securities and Exchange Commission and these slides and the remarks in the presentations for risks and uncertainties which could cause actual

results to differ materially from current expectations.

Forward-looking statements

Non-GAAP financial measuresAll earnings measures in these presentations are non-GAAP and exclude certain non-core and unusual items. Full-year 2017 amounts are from our February 1 and 2 public

disclosures of our 2017 financial results but will be final when we file our 2017 Form 10-K with the SEC.

“Adjusted Net Income” is “Net Income” adjusted to exclude the same non-core and any unusual or non-recurring items as are excluded from the Company's other non-GAAP

earnings measures for the same periods.

“Debt to EBITDA” Ratio is defined as Total Debt divided by Adjusted EBITDA.

“Diversified Peers” are BASF, CE, HUN.

“EBITDA” is net earnings or net earnings per share before interest, taxes, depreciation and amortization adjusted to exclude the same non-core and any unusual or non-recurring

items as are excluded from the Company's other non-GAAP earnings measures for the same periods. “EBITDA Margin” is EBITDA divided by the GAAP measure sales revenue

in the Company’s income statement for the period presented. Information concerning use of the non-GAAP measures. Projections of future Adjusted EBITDA and EBITDA

Margin also exclude any non-core or non-recurring items.

“Free cash flow” is cash provided by operating activities less cash used for additions to properties and equipment, both the GAAP measures in the Company’s statements of

cash flows for the period presented. Information concerning use of the non-GAAP measure free cash flow is available in the Company’s Form 10-Q for third quarter 2017.

“Adjusted Free Cash Flow” is cash provided by operating activities excluding non-core or unusual items less cash used for additions to properties and equipment.

“Free cash flow conversion” is Adjusted Free Cash Flow divided by Adjusted Net Income.

“IRR” is the Internal Rate of Return calculated based on 10-year project cash flow assumptions.

“Return on Invested Capital” (or “ROIC”) is adjusted net income plus interest expense after tax divided by average total borrowings plus average stockholders’ equity for the

period presented, each derived from the GAAP measures in the Company’s financial statements for the periods presented.

“Specialty Peers” are ALB, ASH, FMC, IFF, PPG.

“Variable Margin” defined as GAAP measure sales revenue in the Company’s income statement for the period presented minus total raw material costs, total purchased energy

costs, and variable distribution costs divided by the GAAP measure sales revenue in the Company’s income statement for the period presented.

“Operating Margin” defined as operating earnings divided by the GAAP measure sales revenue in the Company’s income statement for the period presented.

Reconciliations to the most directly comparable GAAP financial measures and other associated disclosures, including a description of the excluded and adjusted items, are available

in the Appendix and in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Forms 10-K and 10-Q filed and Forms 8-K

furnished and filed with the SEC for the periods for which non-GAAP financial measures are presented. Projected future earnings exclude any non-core, unusual, or non-recurring

items, and projections of future earnings per share assume that the adjusted tax rate for the most recent completed period will be the actual tax rate for the projected periods. Unless

otherwise indicated, except for earnings per share, all dollar amounts are millions “($M)” or billions “($B)”.

Additives & Functional Products: Strong value creation 2010–2017

REVENUE

GROWTH CAGR

14% 12%OPERATING

EARNINGS

GROWTH CAGR

~20%STABLE

OPERATING

MARGINS

AFP: Solutions business with robust footprintPerformance additives & formulated products

Sustainable business model that:

Provides critical performance to our

customers relative to final product price

Requires deep collaboration with

customers as a formulation partner

Results in Eastman being a key

ingredient of our customers’ success

35%

23%

6%

Coatings & Inks

Additives23%

Adhesives Resins 18%

Tire Additives 17%

Care Chemicals

17%

Specialty Fluids13%

Other12%

36%

2017 REVENUE BY REGION 2017 REVENUE BY PRODUCT LINE

Transportation28%

Consumables23%Building & Construction

12%

Food, Feed, & Agriculture10%

Energy, Fuels, & Water9%

Consumer/Medical Durables4%

Personal Care/Health & Wellness

3%

Other 11%

2017 REVENUE BY END-USE MARKET

REVENUE

$657M 20%OPERATING

MARGIN

$3.3BOPERATING

EARNINGS

World-class scalable technology platforms are foundation

of AFP’s competitive advantage and sustainable growth

Significant R&D scale

competitive advantage

Significant cost advantage to

fund growth

Unique multi-technology platform

offerings that are difficult to replicate

Multigenerational product plans

developed for all key product families

World-Class Scalable

Technology Platforms

Sc

ale

vs

#2

co

mp

eti

tor

Nu

mb

er

of

pro

du

ct

off

eri

ng

s

vs

co

mp

eti

tors

0 2 4 6 8 10 12 14

Hydrocarbon resins

Polyester coatings resins

Cellulose esters (coatings)

Crystex rubber additives

Coalescents

x xx x x

0 2 4 6 8 10

Hydrocarbon resins

Polyester coatings resins

Cellulose esters (coatings)

Crystex rubber additives

Coalescents

x x x x 30x

WW

WW

50x

WW

WW

x

6

Modifying our molecules to

innovate a new solution …

7

OEM brand equity … fading

A drop in replacement was needed

9

Time was not

on our side …

10

Unique performance

requirements

11

0

50

100

0 500 1000

20°

glo

ss r

ete

ntion (

%)

Hours

Tetrashield

Commercialcontrol

Collaboration across the value

chain validates performance

12

Incomparable performance

2x gloss retention

Xenon light bulbs in a weatherometer for

1,500 hours

13

Relentless drive

makes the difference

ConsumerOEMPaint formulatorResin supplier

World-Class

Technology

Platforms

Relentlessly

Engage

the Market

Differentiated

Application

Development

Polyesters Olefin

derivatives

Putting it all together – molecule to 300,000 painted SUVsWorld-Class Scalable

Technology Platforms

Infrastructure and capability

Rapid prototyping

Acetyls

Others

Eastman Tetrashield™

protective resin systems provide access to

~$1.5B of addressable market across wide range of applications

Agriculture & Construction Equipment

Industrial Maintenance

Architectural Powder

2016 2017 2018 2019 2020

Cum

ula

tive

Ad

dre

ssa

ble

Ma

rke

t S

ize

, R

esin

(kM

T)

Year of first sales

INDUSTRIAL PROTECTIVE COATINGS

Food Packaging

Caps & Closures

Beverage Packaging

2016 2017 2018 2019 2020

Cum

ula

tive

Ad

dre

ssa

ble

Ma

rke

t S

ize

, R

esin

(kM

T)

Year of first sales

METAL PACKAGING COATINGS

Sales Started Sales Projected

Monocoats

1K Premium and High-

Solids Clear Coats

2K Prem Clear Coats

2015 2016 2017 2018 2019 2020

Cum

ula

tive

Ad

dre

ssa

ble

Ma

rke

t S

ize

, R

esin

(kM

T)

Year of first sales

AUTOMOTIVE COATINGS

Relentlessly engaging the market to create growth in AFP

2015 2016 2017

CUSTOMER INTERACTIONS

Targeting appropriate niches allows

above market growth

Multiple macro trends across AFP

create growth opportunities

Increased regulatory pressure

on coatings

Tire labeling in Europe, going global

BPA non-intent legislation

Chinese environmental enforcement

Driving market activation across the

value chain

Regulatory advocacy

Co-innovation activities

Global activation across value chain

Relentlessly Engage

the Market

30% increase

106% increase

2016 2017

NEW BUSINESSYear 1 Revenue

17

Demand drives need for

faster growth, higher yields

Population is growing,

while farmland is not

18

Animals have become resistant

to traditional methods

19

Feed mills turn to

nutritionists, Eastman

2010 2011 2012 2013 2014 2015

Net Feed Conversion Rate

Good

Dramatically increased

market engagement

Added dedicated

sales force

Double-digit volume growth

and improved value capture

Made significant investments

in commercial capability

Launching innovative

new products for

swine and poultry

World-Class

Technology

Platforms

Relentlessly

Engage

the Market

Differentiated

Application

Development

Alkylamines Olefin

derivatives

Portfolio transformation enables unique business model

Engagement with nutritionists

AD/Capability Investment

Acetyls

Cellulose esters

Differentiated application development in AFP embraces and converts

market complexity into sustainable value and above-market growth

Ability to prototype brings the value

proposition to life

Resin to a painted body panel

Tire additive to a rubber compound

Differentiated

Application Development

Broad engagement across the value chain

creates demand

Auto OEM engagement

Regulatory advocacy in multiple markets

Understanding of value proposition enables:

Prioritization of opportunities

Increased probability of market success

Appropriate value capture

2010-2011 2013-2014 2017-2018

# NEW PRODUCTS/ APPLICATION PROGRAMS

2010-2011 2013-2014 2017-2018

PORTFOLIO VALUE OF APPLICATION PROGRAMS

2x

increase

20x

increase

2010-2011 2013-2014 2017-2018

# OF CO-INNOVATION PROGRAMS

5x

increase

2010-2011 2013-2014 2017-2018

% R&D DOLLARS SPENT ON APPLICATION DEVELOPMENT/

PROCESS DEVELOPMENT

2x

increase

24

Stringent fuel

economy standards

Tire performance trade-offs

OEMs, tire manufacturers

need innovators

Collaboration through formulation

Wet

gri

p in

dex

Rolling resistance index

28

Europe driving the standards

29

Unique performance requirements

World-Class

Technology

Platforms

Relentlessly

Engage

the Market

Differentiated

Application

Development

Hydrocarbon

resins

Olefin

derivatives

Translating technology platforms into new marketsDifferentiated

Application Development

Prototyping capability

Testing capability

Multiple platforms in launch enabling 2x market growth

2017 2020

~$100M

NEW

BUSINESS

REVENUE

Technology platform New product launchesRelative to corporate

margins

Addressable market

($M) by platform

Polyesters

Tetrashield™ transportation

coatings resins

h

~$1.5BTetrashield packaging

coatings resins

h

Tetrashield industrial

coatings resins

h

Cellulose estersCEs for core growth h

$0.5BCEs for controlled release h

Hydrocarbon resinsNext-gen tackifiers h

~$1BImpera™ fg

Insoluble sulfurCrystex™ Cure/Cure Pro h

~$0.6BNext-gen Crystex h

Olefins Reactive coalescents h ~$0.5B

AminesEastman Enhanz™ h

~$0.5BOrganic acid formulations h

Forecast

~$250M

NEW

BUSINESS

REVENUE

InnovationGrowth above industrial production Scale and integration

A winning formula for sustainable growth

2012 2013 2014 2015 2016 2017

Impera™ performance resins

Tetrashield™ coatings

Sc

ale

vs

#2

co

mp

eti

tor

0 2 4 6 8 10

Hydrocarbon resins

Polyester coatingsresins

Cellulose esters(coatings)

Crystex rubberadditives

Coalescents

x x x 30x

WW

WW

x

Sustainable earnings, growing above market

Ind

us

tria

l p

rod

uc

tio

n

AFP segment: Growing to a $4B business with ~20% operating margin

~20%

OPERATING

MARGIN

5%–7%

OPERATING

EARNINGS

CAGR

2018–2020

REVENUE

GROWTHmid-single

digits