Deutsche Bank

Deutsche Bank Markets Research Rating Buy North America United States Industrials Chemicals / Specialty Company Eastman Chemical Reuters Bloomberg EMN.N EMN UN Share Price Decline Unwarranted Concerns overdone. Valuation compelling at 10.6x '15E vs Dow at 14.8x. Buy Eastman shares fell 8% despite a solid Q2 beat and the reaffirming of '14 guidance as investors focused on i) new '15 guidance of $7.50-$8.00 (vs $8 previously) and ii) a lowering of '14 Fibers (largest and highest margin segment) EBIT guidance by 6%. We believe investor concerns are overdone as i) Eastman has been backing away from the $8 target for months and, as evidenced by consensus of $7.77, was not viewed as achievable either and ii) Fibers is under-earning in '14 due to destocking, lower demand and reduced operating rates. With valuation a compelling 10.6x '15 EPS vs 14.8x for Dow and Q2 evidencing a more predictable and resilient earnings generator, Buy. 02 beats by $0.08. '14 guidance of $6.70-$7.00 reaffirmed (cons: $6.93) Eastman reported Q2 EPS of $1.92, up 7%, and $0.08 or 4% above consensus. An unplanned outage at Eastman's Kingsport plant reduced sates by $10MM (in Specialty Fluids & Intermediates {SFI),), EBIT by $10MM (evenly divided between Advanced Matis, Fibers and SFI) and EPS by $0.05. Prior to the outage, consensus was $1.88. A lower than expected tax rate added $0.01. The upside was driven by stronger than expected results in Adhesives & Plasticizers (AP) and SFI. Sales rose 1% on flat volumes and price while FX added 1%. EBIT fell 3% to $441 MM while margins compressed 70bps YoY (+130 QoQ) to 17.9% on higher propane costs. Eastman repurchased $100MM of stock in Q2 and has $640MM left under its $18 authorization. Eastman reaffirmed its full year guidance range of $630-$7.00, up 4-9% (cons: $6.93). Lowering '14E EPS by $0.05 to $6.90. Lowering '15E EPS by $0.05 to $7.70 Notwithstanding a solid 02 release, Eastman shares fell 8% due to concerns over lowered '15 EPS and '14 Fibers guidance. Another driver, in our view, was the wide $0.30 guidance range for 21114 as it implies a high degree of volatility in Eastman's business. A slight narrowing of the range to $6.75-$6.95, in our view, would have alleviated this concern. For 21414, we expect slightly lower EPS for Eastman due to destocking in Fibers, a slowdown in heat transfer fluids (China) and a planned outage at the company's largest ethylene cracker in Longview, TX ($20MM, or $0.10 impact in Q4). Looking ahead to '15, we believe Fiber earnings will recover modestly post destocking and lower plant operating rates in '14. While we concur with Eastman's view that Fiber earnings are plateauing, we believe EBIT will be higher in '15 at —$500MM vs the depressed level of $480MM in '14. And with EBITDA of $550MM and capex of just $50MM, Fibers should be strong source of cash to fund growth (M&A, buybacks). For all of '15, we believe Eastman has a number of tailwinds that should drive eamings well above $7.50 including: normalized operations (outages/tumarounds: $0.20), lower propane costs ($0.15-$0.20), acquisitions ($0.10-plus), base business growth ($0.35) and share buybacks ($0.20). To reflect lower Fibers earnings, we are trimming our '14E EPS by $0.05 to $6.90, up 7% and our '15E by $0.05 to $7.70 up 12%. VA 29 July 2014 Results Price at 29 Jul 2014 IUSD) 81.52 Price target 100.00 52-week range 90.20 - 72.67 David Begleiter Research Analyst 1+1) 212 250.5473 [email protected] Ramanan Sivalingam Research Associate 1+1 ) 212 250-8619 [email protected] Jermaine Brown Research Associate 1+1) 212 250.3624 [email protected] I Price/price relative los 90 79 60 and 2112 ern 2113 fet3 2114 —fawn.. Chanical Sap WO MOM 'Relined, Performance (%) 1m 3m 12m Absolute -6.7 -5.4 8.6 S&P 500 INDEX 0.5 4.9 16.9 Swear Oarocia spat argot price of $100 Our $100 target price is based on Eastman trading at 13x '15E EPS in 12mos, a 12% discount to its differentiated chemical peer Dow. Risks: weaker tire demand, increased leverage and the Solutia integration. I Forecasts And Ratios Year End Dec 31 2013A 2014E 2015E FY EPS ILISDI 6.44 6.90 7.70 Saent alidSt.hit ate* tfailteltit 1:09,01fly au Deutsche Bank Securities Inc. Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. DISCLOSURES AND ANALYST CERTIFICATIONS ARE LOCATED IN APPENDIX 1. MCI (P) 148/04/2014. EFTA01100347 29 July 2014 Chemicals / Specialty Eastman Chemical IFigure 1: Eastman Q2 2014 Results ($ in millions) Segment 02'14 02'13 % change Sales $2,460 $2,440 1% Additives & Functional Products $452 $430 5% Adhesives & Plasticizers $358 $339 6% Advanced Materials $631 $625 1% Fibers $386 $363 6% Specialty Fluids & Intermediates $633 $677 (6%) Operating profit $441 $454 (3%) Additives & Functional Products $103 $105 (2%) Adhesives & Plasticizers $56 $50 12% Advanced Materials $80 $81 (1%) Fibers $123 $116 6% Specialty Fluids & Intermediates $96 $118 119%1 Operating margin 17.9% 18.6% -70bps Additives & Functional Products 22.8% 24.4% -160bps Adhesives & Plasticizers 15.6% 14.7% +90bps Advanced Materials 12.7% 13.0% -30bps Fibers 31.9% 32.0% -10bps Specialty Fluids & Intermediates 15.2% 17.4% -230bps Interest Expense ($45) ($46) (2%) Other Income/Expense $8 $0 Pretax profits $404 $408 (1%) Taxes ($112) ($124) Tax rate 28% 30% Non-controlling lid ($2) ($2) 0% Earnings from ops $290 $282 3% One time items $0 ($18) Page 2 Comment Vols: flat, Price: flat, FX: +1%. Marginal sales growth as higher demand in Additives & functional, Adhesives & plasticizers and Fibers offset by lower demand in Specialty fluids & intermediates. Acquired BP's aviation turbine oil business for $283MM. Outlook: FY'14 Expects sales to grow at global GDP growth rate in H2'14. Vols: +4%, Price: flat, FX: +1%. Upside driven by higher demands for coating product lines partially offset by continues destocking in China (primarily for commercial tiresl. Outlook: Expects vats to be better in H214. Vols: +9%, Price: -4%, FX: +1%. Upside led by higher sales vols for adhesives resins and plasticizers more than offsetting lower selling prices due to cont'd competitive pressure as increased supply of adhesive resins and weak plasticizers demand in APac and Europe regions. Vols: flat, Price: flat, FX: +1%. Lower sales growth as higher vols for premium products like interfayers with acoustic properties and Eastman Tritan"' copolyester offset by weak demand for Flexvue coated films. Outlook: Expects sales growth to be in the range of 4%-5% in ;42'14 on higher demand for premium products. Vols: +2%, Price: +4%, FX: flat. Higher growth driven by improved selling prices and sales of acetate flake to EMN's China acetate tow joint venture more than offsetting by lower vols of acetate tow due to additional industry capacity. Outlook: Expects lower sales vols in H2'14 Vols: -,9%%, Price: +2%, FX: flat. Downside due to the unplanned shutdown of the plant (due to power disruption) and lower sales vols for intermediates product line partially offset by improved vols of acetyl-based products. Downside primarily due to higher raw material costs, outage costs alongside competitive pressure in core products partially offset by better product mix. Weakness due to higher raw mat & energy costs (esp propane) partially offset by higher vols. Outlook: FY'14 SIT: -$410-$430MM. Higher earnings due to improved vofs, better productivity and lower operating costs partially offset by lower prices. Outlook: FY'14 ENT: Expects to be more than $175MM. Relatively flat as lower raw material & energy costs offset by costs of the unplanned shutdown. Outlook: FY14 EMT: -$280-$300MM Upside led by higher prices coupled with increased sales of acetate flake to JV and lower raw material costs more then offsetting lower tow acetate vols and higher operating costs. Outlook: FY'14 SIT: -$480MM Downside due to lower vols, higher raw material. & energy costs (esp propane{ alongside costs of the unplanned shutdown at the Kingsport site. Outlook: FY'14 EMT: -$300-$320MM Outlook: FY'14: —280% Deutsche Bank Securities Inc. EFTA01100348 29 July 2014 Chemicals / Specialty Eastman Chemical Income from discount. Ops Reported net inc. Earnings per share (EPS) $2 $0 $292 $284 $1.92 $1.80 7% FY'14 Guidance: $6.70 - '15 Guidance: $7.50 - $8.00 Cash flow items Q2'14 Cash: $175MM, CFO: +$419MM, Capex: $132MM, Acquisition: $283MM, FCF: $234MM, Dividends: $53MM, Repurchase: $100MM. Outlook: FY14 Capex: $575MM, FCF: $600MM. &tom Drvatht Bat* Figure 2: US Propane to Propylene spread (cnb) in poised to fall in Q3'14 vs 02'14 due to modestly higher propane prices 45 .• 40 -.- 35 4- 30 - 25 -,- 20 -,- 15 -.- 10 5 0 I I I I I I I 1 I I I I I I I I I I 1 I 1 i .0mk..lNWWWWWM4DAI , I, AWWWWMMMM0000.—.—r.—NNNNCOMMMV. g§ggg§g8g§§8g§§8g§§8g§§g5883588358835883581i Santa Detotahr Batt. Eastman Off Ofilratall Deutsche Bank Securities Inc. Page 3 EFTA01100349 29 July 2014 Chemicals / Specialty Eastman Chemical Q2 Results Eastman reported Q2 EPS of $1.92, up 7%, and $0.08 or 4% above consensus of $1.84. A lower than expected tax rate added $0.01. The upside was driven by stronger than expected results in Adhesives & Plasticizers and SFI. Sales rose 1% on flat volumes and price while FX added 1%. EBIT fell 3% to $441 MM while margins compressed 70bps YoY (+130 QoQ) to 17.9% amid higher propane costs. Eastman reaffirmed '14 EPS guidance of $6.70-$7.00, up 4-9% YoY (consensus: $6.93). Additives & Functional Products sales rose 5% on 4% higher volumes on improved coatings demand (building and construction, transportation). EBIT fell 2% to $103MM (cons: S104MM) while margins compressed 160 bps to 22.8% on higher propane prices. Adhesives & Plasticizers sales rose 6% on 9% higher volumes partially offset by 4% lower price. EBIT rose 12% to $56MM (cons: $45MM) as adhesive demand appears to have turned the corner following last year's sharp declines and a shift towards Eastman's non-phthalate plasticizers owing to substitution away from phthalate plasticizers. Margins expanded 90 bps to 15.6%. Advanced Materials sales rose 1% on flat volumes and price while FX added 1%. EBIT fell 1% to S80MM (cons: $87MM) as margins compressed 30 bps to 12.7% owing to the impact of the Kingsport outage. Fibers sales rose 6% on 4% higher price and 2% higher volume. EBIT climbed 6% to $123MM (cons: $126MM) while margins compressed 10 bps to 31.9%. Specialty Fluids & Intermediates sales fell 6% on 8% lower volume due to the Kingsport outage partially offset by 2% higher price. EBIT fell 19% to $96MM (cons: $81 MM) and margins compressed 220 bps to 15.2% on higher propane costs and the effects from the Kingsport outage. 'Figure 3: Q2 '14 segment sales % change (YoY) Volume Mee FX Total Additives & Functional Products 4% — 1% 6% Adhesives & Plasticizers 9% 14%1 1% 6% Advanced Materials 1% 1% Fibers 2% 4% 6% Specialty Fluids & Intermediates (8%) 2% 16%) Total 1% 1% Sweat Seternan Page 4 Deutsche Bank Securities Inc. EFTA01100350 29 July 2014 Chemicals / Specialty Eastman Chemical 2014 Segment Outlook Figure 4: 2014E Segment Operating Earnings Guidance and DriversiS in millions) Segment Additives & Functional $410-430 $406 1%-6% (+I Higher vols as improvements in the Products transportation and building & construction markets 2014E 2013 %A Comments I-I Partial offset by contracted olefin spread. Adhesives & Plasticizers >$176 $173 1% (+I Improved vols, better productivity and lower operating costs (-I Competitive pricing pressure in plasticizers Advance Materials $280-$300 $260 8%-15% (+I Increased volume and mix improvement. (-I Costs of the unplanned shutdown. Fibers —$480 5462 4% (+I Strong acetate flake volume, lower raw material costs and higher selling prices. I-I Lower tow acetate vols and higher operating costs Specialty Fluids & Intermediates $300-$320 $364 (12%-18%l I-I Volatility of key raw materials (primarily propane) and unplanned shutdown. I+ITechnology licensing revenue to negate the impact of raw material volatility. Sc..* Ememan IFigure 5: 2014 olefins spread impact Rio year projected olefins prices Propane Ethane Propylene Ethylene $1.18/gallon $0.29/gallon $0.70/lb $0.46/lb AC/inOtb:Lothetbeadecinda Increasing use of ethane relative to propane as a feedstock Hedging program mitigates propane costs exposure Pricing actions expected to partially offset higher feedstock costs Narrowing olefins spreads projected to negatively impact 2014 EPS relative to 2013 by $0.30 to $0.40 Sown Logro.b.k HAWS( ins Deutsche Bank Securities Inc. Page 5 EFTA01100351 29 July 2014 Chemicals / Specialty Eastman Chemical 'Figure 6: 2013 Geographic Safes Analysis LallnIereace 5% Sweat Lwow, WS Cowl& 46% 'Figure 7: 2013 Segment Sales Analysis A6S1644 and Funcionsi Sp000ly Rids & r4cclets worrroatuos S 19% 26% Palos 16% Sown. fawn.» Athancod IMIOrot 25% AdheeMes& pSliciws 14% 'Figure 8: 2013 sales by end-market Energy. Fuels & Water Electronics Agriculture 3% 2% Transportation 5% le% Health & Wellness 6% Other 6% Durable Goods 8% Industrial Chemical & Processing 12% SWAM Salta an Tobacco 13% Building & Construction 15% Cornmeal*. 14% 'Figure 9: 2Q'14 Sales by Region Lath Americo 5% Savant fr ame" anal% vase Steered Canada 46% 'Figure 10: 2O'14 Safes by Segment *Wary Rio A M. 26% Mats 16% Sans &Nowt Clauitcola PalvenC441 falier961 26% AtISIMetat heated %Web) 19% Adnsu6sA ft :0MM 14% Page 6 Deutsche Bank Securities Inc. EFTA01100352 29 July 2014 Chemicals / Specialty Eastman Chemical Valuation Our $100 target is based on Eastman trading at 13x 2015E EPS in 12 months, a 12% discount to its closest differentiated chemical peer Dow, which trades at 14.8x '15E EPS. We believe this multiple is warranted given the progress made integrating Solutia and cost synergies already realized. With the new Eastman becoming a more consistent, stable and predictable earnings generator, we believe Eastman's discount versus its main differentiated peer, DOW will begin to close. Our valuation is further supported by our estimate of Eastman's return on invested capital of 11.2% in 2013E and 11.2% in 2014E and our analysis showing a strong correlation (R2>70%) between chemical sector valuations and returns on capital. Risks Downside risks to our forecasts include increased leverage (-2.8x debt/EBITDA) a failure to achieve Solutia acquisition synergies, increases in propane and paraxylene prices (Eastman's two largest raw materials), a narrowing of the US Gulf Coast propane•propylene spread, price erosion within Additives and Functional Products, additional acetate tow capacity and lower global demand. Deutsche Bank Securities Inc. Page 7 EFTA01100353 29 July 2014 Chemicals /Specialty Eastman Chemical Figure 11 lhons, s are data) 2011 2012 2013 2014E 2015E Sales 7,178 8,102 9,350 9,533 9,915 % Change 11% 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% 14% 2% 7% Selling & Administrative (469) (607) (624) (625) (645) SG&ASales 6.5% 7.5% 6.7% 6.6% 6.5% % Change 4% 29% 3% 0% 3% Research & Development (158) (198) (196) (210) (218) R&D/Sates 2.2% 2.4% 2.1% 2.2% 2.2% % Change (1%) 25% (1%) 7% 4% (S&A+R&D)'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% 17.0% 17.1% 18.0% % Change 11% 30% 21% 2% 9% EBITDA 1,305 1,689 2,021 2,086 2,245 Operating Margin 18.2% 20.8% 21.6% 21.9% 226`. 96 Change 11% 29% 20% 3% 8 Interest Expense (76) (134) (180) (181) (188) % Change (23%) 76% 34% 1% 4% Other Income/Expense 19 10 (3) 11 0 Pretax Income 956 1,195 1,408 1,460 1,592 Pretax Margin 13.3% 14.7% 15.1% 15.3% 16.1% % Change 20% 25% 18% 4% 9% Taxes (304) (391) (393) (407) (446) Tax Rate 31.8% 32.7% 27.9% 27.9% 28.O% Net Income Attributable to Noncontrolling Interests 0 (2) (7) (7) (8) Net Income 652 802 1,008 1,046 1,138 Net Margin 9.1% 9.9% 10.8% 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%) (3%) Diluted Shares Outstanding 143.0 148.9 156.5 151.5 147.8 % Change 13%1 4% 5% (3%) (2%1 Basic EPS $4.66 $5.51 $6.55 $7.00 $7.83 % Change 28% 18% 19% 7% 12% Diluted EPS $4.56 $5.39 $6.44 $6.90 $7.70 % Change 28% 18% 20% 7% 12% Sane: Doutscb Bane common Eastmain Page 8 Deutsche Bank Securities Inc. EFTA01100354 29 July 2014 Chemicals / Specialty Eastman Chemical Figure 12: Eastman Quarterly Income Statement 2013-2014E ($ in millions except per-share data) 2013 2014E U1 02 03 04 YtAB 01A 02A 13.1 04 rta( Sale.. ',. Ctiarigc Cost of Sales Gross Profit Gross 1.43rgin % Change Selling 8i Administrative SG8s4Sales % Change Research & Development R&D/Sates % Change ($8.4.R&DPSales Operating Profit Operating Margin % Change 2,307 27% 11.691) 2.440 32% 11.763) 2,338 3% 11.717) 2,265 4% 11.768) 9.350 15% 16.939) 2,305 (0%) 11.710) 2,460 1% 11.791) 2,421 4% 11.7811 2.347 4% 11.787) 9,533 2% 0.0691 616 26.7% 43% 1104) 7.1% 40% 1491 2.1% 20% 9.2% 677 27.7% 41% 4172) 7.0% 50% 1511 2.1% 19% 9.1% 621 26.6% 3% 1165) 7.1% 9% 1511 2.2% (2%1 9.2% 497 21.9% (19%) (123) 5.4% (45%) 145) 2.0% (27%) 7.4% 2,411 25.8% 14% 1624) 6.7% 3% 1196) 2.1% (1%) ani 595 25.8% (3%) 1159) 6.9% (3%) 4531 2.3% 8% 9.2% 669 27.2% (1%) (172) 7.0% 0% 156) 2.3% 10% an 641 26.5% 3% 1166) 6.9% 1% 1541 2.2% 5% 9.1% 561 23.9% 13% 1128) 5.5% 4% 1481 2.0% 6% 7.5% 2.465 25.9% 2% 1625) 6.6% 0% 1210) 2.2% 7% atm 403 17.5% 48% 454 18.6% 41% 405 17.3% 2% 329 14.5% 1% 1,591 17.0% 21% 383 16.6% (5%) 441 17.9% (3%) 421 17.4% 4% 385 16.4% 17% 1,630 17.1% 2% EBITDA Operating Margin % Cha 512 22.2% 562 23.0% 44 512 21.9% 435 !an 1 2.021 21.6% 493 21.4% 4 559 22.7% 1 532 22.0% 4 496 21.1% 14 2,086 21.9% Interest Expense % Change Other Income (Expense) Pretax Income Pretax Margin % Change Taxes Tax Rate Net Income Attributable to Noncontrolling Interests Net Income Net Margin % Change Basic Shares Outstanding °s Change Diluted Shares Outstanding "J Change 071 147% 111 1461 142% 0 1441 (8%) 111 (43) f10%) (11 1180) 34% 131 1421 (11%) 3 (45) (2%) 8 1471 7% 0 1471 9% 0 1181) 1% 11 355 15.4% 38% 1101) 28.5% 111 408 16.7% 36% 11241 30.4% 121 360 15.4% 2% 1961 26.7% 111 285 12.6% 0% 172) 25.3% 131 1,408 15.1% 18% 1393) 27.9% 171 344 14.9% (3%) 1961 27.9% 111 404 16.4% (1%) 1112) 27.7% 121 374 15.4% 4% 1105) 28.0% 111 338 14.4% 19% 1951 28.0% 131 1.460 15.3% 4% 1407) 27.9% 17/ 253 282 263 210 1.008 247 290 268 240 1.046 11.0% 47% 154.4 12% 156.7 11% 11.6% 43% 154.4 12% 156.7 11% 11.2% 7% 154.0 1% 156.4 0% 9.3% 12% 153.2 (0%1 155.6 (1%) 10.8% 26% 154.0 6% 156.5 5% 10.7% (2%) 151.4 (2%1 153.0 (2%) 11.8% 3% 149.5 (3%1 151.3 (3%) 11.1% 2% 148.7 (3%1 151.1 (3%) 10.2% 14% 148,2 (3%1 150.6 (3%) 11.0% 4% 149.4 (3%1 151.5 Basic EPS % Change $1.64 3I% $1.83 28% $1.71 8% $1.37 13% $6.66 19% stet) (0%1 $1.94 6% $1.90 6% $1.62 18% .53%) $7.00 7% Diluted EPS % Change $1.61 32% $1.80 29% 91.68 7% 91.35 13% 96.44 20% 91.61 (0%1 91.92 7% 91.78 6% $1.60 18% $6.90 7% Sara afuOUa1 Bane uNw•a EILL0WJA Deutsche Bank Securities Inc. Page 9 EFTA01100355 29 July 2014 Chemicals / Specialty Eastman Chemical 'Figure 13: Eastman A 2011 2012 2013P 2014E 2016E pro ForrosAntual Rag Et EE Additives & Functional Products 1.677 1,613 1,719 1.780 1,860 % Change 8% (4%) 7% 4% 4% Adhesives & Plasticizers 1.381 1.432 1.326 1.375 1,425 % Change 32% 4% (7%) 4% 4% Advanced Materials 2.313 2.254 2.349 2.370 2.500 % Change 12% 13%1 4% 1% 6% Fibers 1.279 1,315 1.441 1.500 1.525 % Change 12% 3% 10% 4% 2% Specialty Fluids & Intermediates 2.548 2.473 2.497 2.505 2.600 % °dope 34% (3%) 7% 0% 4% Total Segment Sales 9.198 9.087 9.332 9.530 9.910 Other 77 33 18 3 5 Sales 9,275 9,120 9.350 9.533 9.915 % Change 19% (2%) 3% 2% 4% pro Forma/Actual Oneratina Profit PE EE Additives & Functional Products 382 393 406 415 454 Operating Man*, 22.8% 24.4% 23.6% 23.3% 24.4% % Change 3% 3% 3% 2% 9% Adhesives & Plasticizers 250 263 173 185 195 Operating Margin 18.1% 18.4% 13.0% 13.5% 13.7% % Change 34% 6% (34%) 7% 6% Advanced Materials 251 210 280 295 323 Operating Maigin 10.9% 9.3% 11.1% 12.4% 12.9% % Change 20% (16%) 24% 13% 9% Fibers 365 388 462 480 488 Operating Margin 28.5% 29.5% 32.1% 32.0% 32.0% % Change 7% 6% 19% 4% 2% Specialty Fluids & Intermedates 278 359 384 310 375 Operating Margin 10.9% 14.5% 14.6% 12.4% 14.4% % Change 28% 29%. 1% I15%) 21/4, Segment Operating Profit 1,526 1,613 1,665 1,685 1.835 % Change 15% 6% 3% 1% 9% Other 1128) 1126) 174) 155) 155) Operating Profit 1.398 1.487 1.591 1,630 1.780 Operating !Navin 191% 76.3% 17.0% 17.1% 18.0% % Change 12% 6% 7% 2% 9% Pro Forme/Actual EMMA PE & Additives & Functional Products 477 490 501 513 557 EHITDA Margin 28.4% 30.4% 29.1% 28.8% 29.9% % Change 3% 3% 2% 2% 9% Adhesives &Plasticizers 294 308 218 230 241 681117A Margin 21.3% 21.5% 16.4% 16.7% 16.9% % Change 31% 5% (29%) 6% 5% Advanced Materials 386 347 404 443 477 581T0.4 Abrgin 16.7% 15.4% 17.2% 18.7% 19.7% % Change 10% 00%) 16% 10% 8% Fibers 433 457 527 545 554 EBITOA Margin 33.9% 34.8% 36.6% 38.3% 363% % Change 7% 6% 15% 3% 2% Specialty Fluids & I mennedates 358 440 444 395 467 5 HITOA Mirgin 14.1% 17.8% 17.8% 15.8% 18.0% % Change 23% 23% 7% OM) 18% SOWThifit E BUDA 1,948 2.042 2.094 2.126 2.296 % Change 14% 5% 3% 2% 8% Other 11211 (119) 1701 151) 1511 EBITDA 1.827 1,923 2.024 2.075 2.245 EBITOA Abigin 19.7% 21.1% 21.6% 21.8% 22.6% % Change 11% 5% 6% 3% 8% Interest Expense 176) 1134) 1180) 1181) 1188) % Chanue (23%) 76% 34% 1% 4% Other IncomciE xpensc 19 10 13) II 0 Pretax Income 956 1.195 1,408 1,480 1,592 Pretax Margin 13.3% 14.7% 15.7% 15.3% 76.194 % Change 20% 25% 18% 4% 9% Taxes 1304) 1391) 1393) 1407) 1446) rex Rate 31.8% 32.7% 27.9% 27.9% no% Net Income Attributable to Noncontioning Interests 0 12) 47) 17) 18) Not Income 652 802 1,008 1,046 1,138 SaiKIVOCUISOW &at erema Lenin, Page 10 Deutsche Bank Securities Inc. EFTA01100356 29 July 2014 Chemicals / Specialty Eastman Chemical igure 14: Eastman Quarterly Segment Income Statement 2013-2014E ($ in millions, except per-share data) 2013 2014E 01 122 03 OS WA WA WA OD as read Selea Ad:Wives & Functional Products 419 430 445 425 1,719 423 452 485 440 1.780 % Change 5% 2% 10% 11% 7% 1% 5% 4% 4% 4% Adhesiran &Plasticizers 345 339 321 321 1.326 345 358 335 337 1.375 % Change (8%) (9%) (8%) (5%) (7%) 0% 6% 4% 5% 4% Advanced Skiterials 584 625 583 557 2.349 581 631 590 588 2.370 % Change 3% 4% 4% 5% 4% (1%) 1% 1% 2% 1% Fibers 348 363 363 369 1.441 364 386 380 380 1500 % Change 7% 14% 4% 14% 10% 2% 6% 5% 3% 4% Specialty Fluids & intermediates 607 677 820 593 2.497 601 633 650 621 2.505 % Change 15%1 4% 5% 1% 1% (1%) (8%) 5% 5% 0% Total Segment Sales 2.301 2.434 2.332 2.265 9.332 2.304 2.480 2.420 2.346 9.530 Other 6 6 6 0 t8 1 0 I i 3 Sates 2.307 2,440 2.338 2.285 9.350 2.305 2.480 2.421 2.347 9.533 % Change aggratino Profit Ackkives & Functional Products (1%) 98 3% 105 3% III 4% 92 3% 408 (0%) 94 1% 103 4% 110 4% 108 2% 415 Operating Margin 23.4% 24.4% 24.9% 21.6% 23.6% 22.2% 22.8% 23.7% 24.5% 23.3% % Change 4% 0% 6% 3% 3% (4%) (2%) UV 17% 2% Adheshois & Plasticizers 49 50 41 33 173 47 56 45 37 185 Operating Unpin 14.2% 14.7% 12.8% 10.3% 73.0% 33.6% 15.6% 13.4% 110% 13.596 % Change (26%) (31%1 144%1 137%1 134%) (4%) 12% 10% 12% 7% Advanced Wens& 65 81 69 45 280 71 80 80 84 295 Operating Unpin 11.1% 73.094 118% 8.7% 17.1% 12.2% 12.7% 13.6% 11.3% 12.4% % Change 7% 29% 21% 55% 24% 9% (1%) 16% 42% 13% Fibers 114 116 113 119 482 117 123 115 125 480 Operating Mogin 32.9% 32.0% 31.1% 32.2% 32.1% 33.1% 31.9% 30.3% 32.9% 32.0% % Change 13% 21% 15% 28% 19% 3% 6% 2% 5% 4% Specialty Fluids & Intermediates 95 118 90 61 384 64 98 85 85 310 Operating Margin 15.7% 17.4% 14.5% 10.3% 14.6% 10.6% 15.2% 13.1% 10.5% 12.4% % Change 30% 22% (6%) (34%) 1% (33%) (19%) (6%) 7% 05%1 Segment Operating Profit 421 470 424 350 1665 393 458 435 399 1,685 % Change 7% 9% (1%) (2%) 3% (7%) (3%) 3% 14% 1% Other 118) (18) (19) (21) (74) (10) (171 (14) (14) _1551 Operating Profit 403 454 405 329 1,591 383 441 421 385 1.630 Operating Margin 17.5% 18.6% 17.3% 14.5% 17.0% 16.6% 17.9% 17.4% 16.4% 17.1% % Change I I% I.7% 2% 1% 7% (5%) (3%1 4% 17% 2% Pro Forma/Actual EBITDA Aostives & Functional Products 501 513 EDEMA ...Alvin 29.1% 28.8% % Change 2% 2% Adhesives &Plasticizers 218 230 E8ITOA Margin 16.4% 18.7% % Change (29%) 6% Advanced lithteriais 404 443 E 81TOA Margin 17.2% 19.7% % Change 16% 10% Fibers 527 545 5 BIWA Margin 36.6% 36.3% % Change 15% 3% Specialty Fluids & Intermediates 444 395 EMMA Mngln 17.8% 15.8% % Change 1% (11%) Segment EBITDA 2.094 2.126 % Change 3% 2% Other 1701 (511 EBITDA 2.024 2.075 E8trOA Margin 21.6% 21.8% % Change 5% 3% Interest Expense 147) 148) (441 143) 1180) 142) (451 147) 147) 4181) % Change 147% 142% (8%) (10%) 34% (11%) (7%) 7% 9% 1% Other Income (E sponse) It) 0 (t) It) 43) 3 8 0 0 II Pretax Income 355 408 380 285 1.408 344 404 374 338 1,480 Pretax Margin 15.4% 16.7% 15.4% 12.8% 15.1% 14.9% 16.4% 15.4% 14.4% 15.3% % Change 38% 36% 2% 0% 18% 13%1 II%) 4% 19% 4% Taxes 1101) 1124) 1981 172) (393) 198) 4112) 4105) 195) 1407) Tax Rate 285% 30.4% 26.7% 25.3% 27.9% 27.9% 27.7% 28.0% 28.0% 27.9% Net Income Attributable to Noncontrolling Interests III 12) 111 (3) In (1) 12) 11) (3) I7t Net Income 253 282 283 210 1,008 247 290 288 240 1,048 ScieryDevriche have *omen fume Deutsche Bank Securities Inc. Page 11 EFTA01100357 29 July 2014 Chemicals / Specialty Eastman Chemical Figure 15: Eastman Annual Cash Flow Statement 2011-2015E ($ in millions) 2011 2012 2013 WA GM 2014E 2016E Operating Activities: Adjustments to Reconcile Net Income to Cash From Operations Net Income 8696 5444 51.172 5234 5294 51046 $1,138 Depreciation and Amortization 273 360 433 107 110 445 465 Deferred Income Taxes 11 48 331 32 29 185 185 Mark-to-Market Pension &OPEB (Gains) Losses 1.1/ (383) Pension and OPE B Contributions in Excess of Expenses (149) (121 (331 (131 Variable Compensation in Excess of Expenses 26 82 (931 40 Asset Impairment Charges 28 8 0 (Gain) Loss On Sale of Assets/Investments Other 0 (5) Change in Operating Assets and Liabilities Working Capital (Increases) (370) 96 (46) (255) (34) (7) 150; Other 85 (42) (1711, (51) 18 (1251 (1251 Cash Flow From Operations 625 1.128 1.297 (301 419 1,408 1.478 Free Cash Flow Cash F low F rom Operations 625 1,128 1,297 (30) 419 1,408 1,478 Less: Capital Expenditures (457) (465) 14831 (122) (132) (5751 (600) Free Cash Flow 168 663 814 (152) 287 833 878 Less: Dividends (136) (192) 1140) (53) (53) (212) (226) Free Cash Flow (ENT! Definition) 32 471 674 (205) 234 621 652 Investing Activities: Capital Expenditures (4571 (465. (483) (122) (132) (575) (600) Acquisitions (156) (2,6691 (283) (370) Proceeds from Sale of Assets & Investments 651 207 31 4 8 Additions to Short-Term Time Deposits (200) Additions to Capitalized Software (9) (5) (5) (1) Other 29 (30 2 Total Investing Activities (142) (2,9621 (457) (119) (405) (945) (600) Financing Activities: Inc. IDecrt in UT Debt (2) 1,645 (955) 125 366 249 Inc. IDecr.) in S/T Debt 1 11) 425 257 (231) Dividends (136) (1921 (140) (53) (53) (212) (226) Purchase of Treasury Stock 1316) (238) (260) (100) (500) (600) Dividends Paid to Noncontrolling Interim- (10) (3) (6) Proceeds from Stock Option Exercises 32 (2) Other 30 52 59 Total Financing Activities (423) 1,504 (859) 98 (27) (463) (826) Effect of Exchange Rate Changes on Cash 1 2 7 (1) 3 Increase (Decrease) in Cash 61 (328' (12) (52) (10) 0 52 soon, yountrie snit exiinan (omen Page 12 Deutsche Bank Securities Inc. EFTA01100358 29 July 2014 Chemicals Specialty Eastman Chemical Figure 16: Eastman Annual Balance Sheet 2011-2015E ($ in mill ens) 2011 2012 2013 Q1A 02A 2014E 2015E Assets Current Assets Cash and Equivalents $777 $249 $237 $185 $175 $237 $289 Accounts Receivables 632 846 880 998 880 915 Wise receivables 72 151 208 169 208 208 Inventories 779 1,260 1,264 1,377 1,285 1,323 Other Current Assets 42 88 251 220 251 251 Total Current Assets 2,302 2,594 2,840 2,949 2,861 2,986 Net Property, Plant and Equipment 3,107 4,181 4,290 4,301 4,790 4,925 Good ill and Intangible Assets 406 4,493 4,398 4,374 4,398 4,398 Other Noncurrent Assets 369 351 317 323 317 317 Total Assets 6,184 11,619 11,845 11,947 12,366 12,626 Liabilities & Stockholders' Equity Current Liabilities Short-Term Debt $153 S4 $0 $0 $0 $0 Accounts Payable 529 723 762 729 776 799 Accrued Liabilities 146 171 205 83 205 205 Accrued Income Taxes 40 76 80 65 80 80 Post-Employement Obligations 58 62 59 56 59 59 Interest Payable 26 59 46 36 46 46 Other Current Liabilities 162 269 318 290 318 318 Total Current Liabilities 1,114 1,364 1,470 1,259 1,484 1,507 Long-Term Debt 1,445 4,779 4,254 4,635 4,773 4,503 4,503 Deferred Income Taxes 210 91 496 546 681 866 Post-Employment Obligations 1,411 1,856 1,297 1,301 1,037 777 Other Long-Term Liabilities 134 501 453 398 453 453 Total Liabilities 4,314 8,591 7,970 8,139 8,158 8,105 Shareholders' Equity Common Stock 2 2 2 2 2 2 Additional Paid-in Capital 900 1,709 1,778 1,795 1,778 1,778 Retained Earnings 3,436 3,038 4,012 4,191 4,846 5,758 Accumulated other comprehensive loss (538) 123 171 168 171 171 Treasury Stock (1,930) (1,929) (2,167) (2,427) (2,667) (3,267) Noncontrolling interest 85 79 79 79 79 Total Shareholders' Equity 1,870 3,028 3,875 3,808 4,209 4,521 Total Liabilities & Stockholders' Equity $6,184 $11,619 511,845 $11,947 $12,366 $12,626 £Yb,Y, Deutsche Bank Securities Inc. Page 13 EFTA01100359 29 July 2014 Chemicals / Specialty Eastman Chemical Appendix 1 Important Disclosures Additional information available upon request Disclosure checklist Company Ticker Recent price• Disclosure Eastman Chemical EMN.N 81.52 (USD) 29 Jul 14 14,15,17 'Prices are sourced from local exchanges via Routers. Bloomberg and other vendors. Data is sourced from Deutsche Bank and subject companies Important Disclosures Required by U.S. Regulators Disclosures marked with an asterisk may also be required by at least one jurisdiction in addition to the United States. See Important Disclosures Required by Non-US Regulators and Explanatory Notes. 14. Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from this company within the past year. 15. This company has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received non-investment banking securities-related services. Important Disclosures Required by Non-U.S. Regulators Please also refer to disclosures in the Important Disclosures Required by US Regulators and the Explanatory Notes. 17. Deutsche Bank and or/its affiliate(s) has a significant Non-Equity financial interest (this can include Bonds, Convertible Bonds, Credit Derivatives and Traded Loans) where the aggregate net exposure to the following issuer(s), or issuer(s) group, is more than 25m Euros. For disclosures pertaining to recommendations or estimates made on securities other than the primary subject of this research, please see the most recently published company report or visit our global disclosure look-up page on our website at http.//gm db com/ger/disclosure/Disclosure eqsthicCode=EMNI1 Analyst Certification The views expressed in this report accurately reflect the personal views of the undersigned lead analyst(s) about the subject issuer and the securities of the issuer. In addition, the undersigned lead analyst(s) has not and will not receive any compensation for providing a specific recommendation or view in this report. David Begleiter Page 14 Deutsche Bank Securities Inc. EFTA01100360 29 July 2014 Chemicals / Specialty Eastman Chemical I Historical recommendations and target price: Eastman Chemical (EMN.N) (as of 7/29/20141 100.00 90.00 8 4 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 Au 11 Nov 11 Feb 12 May 12 Aug 12 Nov 12 Isktel3 May 13 Aug 13 Nov 13 Feb 14 May 14 Previous Recommendations Strong Buy Buy Market Perform Underperform Not Rated Suspended Rating Current RecommemIntint$ Buy Hold Sell Not Rated Suspended Rating •New Recommendation Structure as of September 9,2002 1. 09/16/2011: Buy, Target Price Change USD95.00 6. 02/)3/2013: Buy, Target Price Change USD85.00 2. 10/31/2011: Buy, Target Price Change USD48.00 7. 07/30/2013: Buy, Target Price Change USD100.00 3. 07109/2012: Buy, Target Price Change USD63.00 8. 10/28/2013: Buy, Target Price Change USD95.00 4. 10/28/2012: Buy, Target Price Change USD70.00 9. 0028/2014: Buy, Target Price Change USD100.00 5. 12113/2012: Buy, Target Price Change USD80.00 Equity rating key Buy: Based on a current 12- month view of total share-holder return (TSR = percentage change in share price from current price to projected target price plus pro-jected dividend yield ) , we recommend that investors buy the stock. Sell: Based on a current 12-month view of total share- holder return, we recommend that investors sell the stock Hold: We take a neutral view on the stock 12-months out and, based on this time horizon, do not recommend either a Buy or Sell. Notes: 1. Newly issued research recommendations and target prices always supersede previously published research. 2. Ratings definitions prior to 27 January, 2007 were: Buy: Expected total return (including dividends) of 10% or more over a 12-month period Hold: Expected total return (including dividends) between -10% and 10% over a 12- month period Sell: Expected total return (including dividends) of -10% or worse over a 12-month period Equity rating dispersion and banking relationships 500 450 4C0 350 3C0 250 2C0 ISO ICO 50 0 0 55 % Buy 38% 1 %31 % Hold Sell @Companies Covered aCce. w/ Banking Relationship North American Universe Deutsche Bank Securities Inc. Page 15 EFTA01100361 29 July 2014 Chemicals / Specialty Eastman Chemical Regulatory Disclosures 1. Important Additional Conflict Disclosures Aside from within this report, important conflict disclosures can also be found at https://gm.db.com/equities under the "Disclosures Lookup" and "Legal" tabs. Investors are strongly encouraged to review this information before investing. 2. Short-Term Trade Ideas Deutsche Bank equity research analysts sometimes have shorter-term trade ideas (known as SOLAR ideas) that are consistent or inconsistent with Deutsche Bank's existing longer term ratings. These trade ideas can be found at the SOLAR link at htto://gm.db.com. 3. Country-Specific Disclosures Australia and New Zealand: This research, and any access to it, is intended only for "wholesale clients" within the meaning of the Australian Corporations Act and New Zealand Financial Advisors Act respectively. Brazil: The views expressed above accurately reflect personal views of the authors about the subject company(ies) and its(their) securities, including in relation to Deutsche Bank. The compensation of the equity research analyst(s) is indirectly affected by revenues deriving from the business and financial transactions of Deutsche Bank. In cases where at least one Brazil based analyst (identified by a phone number starting with +55 country code) has taken part in the preparation of this research report, the Brazil based analyst whose name appears first assumes primary responsibility for its content from a Brazilian regulatory perspective and for its compliance with CVM Instruction # 483. EU countries: Disclosures relating to our obligations under MiFiD can be found at htto://www.alobalmarkets.db.com/riskdisclosures. Japan: Disclosures under the Financial Instruments and Exchange Law: Company name - Deutsche Securities Inc. Registration number - Registered as a financial instruments dealer by the Head of the Kanto Local Finance Bureau (Kinsho) No. 117. Member of associations: JSDA, Type II Financial Instruments Firms Association, The Financial Futures Association of Japan, Japan Investment Advisers Association. Commissions and risks involved in stock transactions - for stock transactions, we charge stock commissions and consumption tax by multiplying the transaction amount by the commission rate agreed with each customer. Stock transactions can lead to losses as a result of share price fluctuations and other factors. Transactions in foreign stocks can lead to additional losses stemming from foreign exchange fluctuations. "Moody's", "Standard & Poor'?, and "Fitch" mentioned in this report are not registered credit rating agencies in Japan unless Japan or "Nippon" is specifically designated in the name of the entity. Reports on Japanese listed companies not written by analysts of Deutsche Securities Inc. (DSI) are written by Deutsche Bank Group's analysts with the coverage companies specified by DSI. Malaysia: Deutsche Bank AG and/or its affiliate(s) may maintain positions in the securities referred to herein and may from time to time offer those securities for purchase or may have an interest to purchase such securities. Deutsche Bank may engage in transactions in a manner inconsistent with the views discussed herein. Qatar: Deutsche Bank AG in the Qatar Financial Centre (registered no. 00032) is regulated by the Qatar Financial Centre Regulatory Authority. Deutsche Bank AG - QFC Branch may only undertake the financial services activities that fall within the scope of its existing QFCRA license. Principal place of business in the QFC: Qatar Financial Centre, Tower, West Bay, Level 5, PO Box 14928, Doha, Qatar. This information has been distributed by Deutsche Bank AG. Related financial products or services are only available to Business Customers, as defined by the Qatar Financial Centre Regulatory Authority. Russia: This information, interpretation and opinions submitted herein are not in the context of, and do not constitute, any appraisal or evaluation activity requiring a license in the Russian Federation. Kingdom of Saudi Arabia: Deutsche Securities Saudi Arabia LLC Company, (registered no. 07073-37) is regulated by the Capital Market Authority. Deutsche Securities Saudi Arabia may only undertake the financial services activities that fall within the scope of its existing CMA license. Principal place of business in Saudi Arabia: King Fahad Road, Al Olaya District, P.O. Box 301809, Faisaliah Tower - 17th Floor, 11372 Riyadh, Saudi Arabia. United Arab Emirates: Deutsche Bank AG in the Dubai International Financial Centre (registered no. 00045) is regulated by the Dubai Financial Services Authority. Deutsche Bank AG - DIFC Branch may only undertake the financial services activities that fall within the scope of its existing DFSA license. Principal place of business in the DIFC: Dubai International Financial Centre, The Gate Village, Building 5, PO Box 504902, Dubai, U.A.E. This information has been distributed by Deutsche Bank AG. Related financial products or services are only available to Professional Clients, as defined by the Dubai Financial Services Authority. Page 16 Deutsche Bank Securities Inc. EFTA01100362 29 July 2014 Chemicals / Specialty Eastman Chemical Deutsche Bank Securities Inc. Page 17 EFTA01100363 David Folkerts-Landau Group Chief Economist Member of the Group Executiva Committee Guy Ashton Global Chief Operating Officer Research Marcel Cassard Global Head FICC Research & Global Macro Economics Richard Smith and Steve Pollard Co-Global Heads Equity Research Michael Spencer Regional Head Asia Pacific Research International locations Ralf Hoffmann Regional Head Deutsche Bank Research, Germany Andreas Neubauer Regional Head Equity Research, Germany Steve Pollard Regional Head Americas Research Deutsche Bank AG Deutsche Bank AG Deutsche Bank AG Deutsche Securities Ine. Deutsche Bank Place &die Gallusstralle 10-14 Filiale Hongkong 2-11-1 Nagatacho Level 16 60272 Frankfurt em Main International Commerce Centre. Sanno Park Tower Comer of Hunter & Phillip Streets Germany 1 Austin Road West,Kowloon. Chiyoda-ku, Tokyo 100-6171 Sydney, NSW 2000 Tel: (49) 69 910 00 Hong Kong Japan Australia Tel: (852) 2203 8888 Tel: (81) 3 5156 6770 Tel: (61) 2 8258 1234 Deutsche Bank AG London Deutsche Bank Secunties Inc 1 Great Winchester Street 60 Wall Street London EC2N 2EO New York, NY 10005 United Kingdom United States of America Tel: (44) 20 7545 8000 Tel: II) 212 250 2500 Global Disclaimer Tin 444malion and opima n Ons !noen wam ~toi by Dustscns Bank KG a ons of du alliines KoNclinns •Clussischo Ponk, lbo Kdormalion haan is bainud lo ho eulabb ani bas beun oblienad Stom 4244 aoureas Kelim«, CO ba talabl. Daalscha Br* matas no sapossanialion tl lo Oho 4concy a conmeganias M pon intarinton Chaulushe 644 min angagsr in ~unies Isansacions, or, • psopnalály ias os °Inwon ' mama 'nconsi I‘n w h ha i w 044 n Ihis musisch tapen In ~bon, °nors voIhn Dualscho Link includi0 sisalagins and siles sUlt nov lieg • moe ihal a «woning...nl volts Mal laan in lha tamiech neon. Opinqns. esiaralin and waannes n Ibis inpen oorniii.M. 0w Cutmed judionni of lha aulhot as al 0w data of lhe tapen Thsv do nol essoncsseiy panact Oho canons of Dossischo Bank and ata saust Co change wilhoal nolios. Dnoche Bank hm no oblgalion lo rada, «toddy os mand the apen ot Co «henna r444y a eacipi•n1 deug« in Oho mint Bal arre canon, lonionn or mima,, sa 141h baron chaighn autnermundy beamen ~conga. Rinss and avadabilny al 6nancial ins', wonen ata aubnci b> [tango venso.4 nasa, INT. rapen 4 psdnickd los nlonnaliond bunnen only. II is 444 are ciar n a asnotabon of are ome,» bata uil Erry linareiM irehernoiti or lopertictiabi in any pulkuln beding laraiogn Tange prins aa inieMnIfy menen* and a product til Ma ~had pidgittnani. In Amon 2003, Cuulushe Ponk valilulad a new gelint *Nabo anahVa mar choosa nol b lal ot maniak, a largal gnoe of captain dwars urdas covn•sps wilg a Held paling In partieel«. lhe ave insugly ocos lot "%gd' tabad 'locks hinnik • renal cap senslIss ihan most olhar comparsas in ns saciara sassion We balwo hal ssuch polei, wil all>w us lo man bete usa ot as tasoutom Raam net Km twgse<0 al bnp /Yam 40 oom Co claburnna Oho 11e0s4 erica ol any nos*. lbo Innaai instrunistrils dodental in Su twen mast n be sunaties b al sap/nors and isnuseses nu« nua Shaw oen ,alamen invesinhani Muilen,. Slot* itunmetens care laad lo bon as a «och of >vna lbcinslions ani odhat acima II a gommen inlituramni is cenomin•had in • netmaag enne aan on sinustoes csasancy. • changu in midonga mim mint adneeMit afhad lho nvnintarel. Pau parietratrea is nol esemosget indicatie* ot haan meute Dautichi Bank nny w,Oh rasµaa lo inatanian coymni bv lhe /spon sol la os btw bom cuslomos en a banend bint and veredas lis muon n dat-Winti 10 Dada On ImOrniteagy heets Linten ~ming luw provias onsurnsa. all inns•clions shajd os otamdad :Molmt, dm Drautitta Bink !meis in dm minahobs bons paOddhon. In lha US. Su inspon n appecnnyl andbs dainbulad be Leunde. Bark &morden Inc. a ~tm olds4 HYSE. 110 H400, SPA and SPC. In Garant ibis naah rs appsonsd instiet connunicatad by Dossischo Dank AG rsseklun aulhorisod bv Oho Baf.. In Oho Oogt.] Kingdom Ibis tapet is •ppecnud and.' communnsIad bv DomIcle Bark AG Londen. e mambo of Oho Longen Slons Eachingps and haquInvd lot Oho Financial oordal 441448 los Oho ~tul of Knessinuni tussniss in Pa UK and aulhodtad lot Iha &Fin. Thcs rapen is duiding/d in Hors° Kong Ias DAtacte Bak KG, Heng Kond Bearch in Kapra bv Chautscho Secualists Kome Co Instapt.' is diaribuled n Snsapons bv asacte Link KG. Srpapons Bearcb a Dsuncns Sacurilin Ans bingo; Snpsposa Brands sova Ralhas 0.av FISCO Soul!, Tont, Singap4o81668.3..66. 6423 0001k and s•cpsanis in Snqapores ol Oss roomt ata Co conladi Duwha Sara KG, Snippena siance os CluulsCho Meuten. Asia Linided, SntgapOta Beanah ere ntipagl clans ~Tiara meng kont a in connecton wik lbo napal Mans Ibis tapen n issuad or leemt/ga:ad nSommea lo panne oho e no: in assrad4u0 inWsw, mooi innaaita sr vcsidulions1 ,apela 04 claGnad in lha apOidablo Singinoen lana and tagulatonse °gelach. Bon A.G. Smousen Elsands a Cuulushe Samoem &ie Lisnilod, Sinnspxo &inch accapis knol sasponsibilty lo such panen los lha waslam of Ws rapen In Junn Ins papen ia apprond indoet dialtbuhad be Chaulashe Sanorilin Inc Tha nfosnialion cce4.0.0 in ins spon deus nol onishInes la spongat ol inwbimanl adven In Aunrala. 444.141esnis should obtain a somt ot a Ismiclust Cambium Slainmerd 08)Sinal•leds b> ne linuical product safasnud b> vs Ihis rapen and consids.114 POS baton meting any dennen aboul nholhar le acemt• Oho ~dimt Dautithe Bak AG Joharers~ n ircotpotMad in Out Fadatal R•public of eetsen IBessxls Rachns. »tab« in Souns Akte* 1998003298001 Addtonal nInnialion lo omtuint& olhas liancal eedacht or 0044 ctscuund in <hu hoon e avalabla upon euqusast Iria nonet min; n% he mensdom.; dalubtolad a publinsd be any panne lor any purpossenilhoul DeuUche Dali's poos nalsncomarel. Blaam ala omina asten spoeling Cops0;1402014 Dustastps Bank AG EFTA01100364