Eastman Chemical Company (EMN) Deutsche Bank Global Industrial, Materials & Building Products Conference summary

Demand and market trends

• Demand trends are broadly in line with expectations, with stable end markets and a seasonal uptick in durables and building construction, especially in North America.

• Asia, particularly China, shows slower growth and recovery, with no significant improvement in consumer confidence or demand.

• Europe is described as stable but with assets under scrutiny and positive trends in personal care and water treatment end markets.

• No significant restocking observed; customers remain disciplined with working capital amid economic uncertainty.

• Durables demand has stabilized globally, with some reconnection to primary demand.

Financial guidance and risks

• Guidance for Q2 is supported by order books, with expectations of approximately $2 per share.

• Full-year operating profit guidance of about $1.3 billion and operating cash flow of $1.4 billion remain unchanged, with volume, mix, utilization, and methanolysis EBITDA as key drivers.

• Upside risks include reconnecting to primary demand and potential tax deals; downside risks involve working capital needs with stronger second-half earnings.

• Pricing and inflation are expected to be neutral to slightly negative for the year, with energy costs being a variable factor.

Circular economy and recycling projects

• Kingsport methanolysis facility is ramping up, with reliability improving and utilization rates moving toward 70-80%, targeting $75 million incremental EBITDA in 2024.

• Hard-to-recycle feedstock will be processed by year-end, supporting the $75 million target.

• Longview, Texas project is progressing toward FID in Q3 2024, with DOE funding and a PepsiCo contract; startup is planned for the second half of 2027.

• France project timeline is under evaluation due to policy and market uncertainties; learnings from Kingsport and Longview will inform next steps.