EFTA Document EFTA01462059

29 July 2014 Chemicals / Specialty Eastman Chemical Figure 12: Eastman Quarterly Income Statement 2013-2014E (5 in millions except per-share data) 2013 2014E 01 02 03 04 YEAR O1A O2A 03 04 YEAR Sales 2,307 2,440 2.338 2,265 9.350 2,305 2,460 2,421 2,347 9,533 % Change 27% 32% 3% 4% 15% (0%) 1% 4% 4% 2% Cost of Sales 11,6911 (1,763) (1,717) (1,7681 (6,939) (1,710) (1,791) (1,781) (1,787) 17.068) Gross Profil 618 877 821 497 2,411 595 869 641 561 2.465 Cross Margin 26.7% 27.7% 26.6% 21.9% 25.8% 25.8% 27.2% 26.5% 23.9% 25.9% % Change 43% 41% 3% (19%) 74% (3%) CI%) 3% 13% 2% Selling & Administrative (1641 (172) 1165) (1231 16241 1159) (1721 1166) 1128) (6261 SG&A'Sales 7.1% 7.0% 7.7% 6.4% 6.7% 6.9% 7.0% 6.9% 5.5% 6.6% % Change 40% 50% 9% (45%) 3% 13%) 0% 7% 4% 0% Research &Development (491 (511 1517 145) 11961 153) (56) (54) 148/ (2101 1189:Sales 2.1% 2.7% 2.2% 2.0% 2.7% 2.3% 2.3% 2.2% 2.0% 2.2% % Change 20% 79% (2%) (27%) (1%) 8% 10% 5% 6% 7% (S8A+884:11/Sales 9.2% 97% 9.2% 7.4% 8.8% 9.2% 9.3% 81% 7.5% 88% Operating Profit 403 454 405 329 1,591 383 441 421 385 1.630 Operating Margin 17.5% 18.6% 17.3% 74.5% 17.0% 16.6% 17.9% 17.4% 76.4% 17.1% % Change 48% 41% 2% 1% 21% (5%) (3%) 4% 17% 2% EBITDA 612 662 612 436 2,021 493 669 632 496 2,086 Operating htngin 22.2% 23.0% 21.9% 79.2% 21.6% 21.4% 22.7% 22.0% 21.1% 21.9% % Change 48% 44% 0% (1%) 20% (4%) (1%) 4% 14% 3% Interest Expense (471 (461 144) (43) 1180) (42) 140 (47) (471 (181) 'k. Change 147% 142% (8%) (10%) 34% (1/%) (2%) 7% 9% 1% Other Income (Expense) (1) 0 11) (11 O) 3 8 0 0 11 , Pretax Income 355 408 360 285 1.408 344 404 374 338 1.440 Pretax WWI 15.4% 16.7% 76.4% 12.6% 16.1% 14.9% 76.4% 16.4% 14.4% 75.3% nr Change 38% 36% 2% 0% 78% (3%) ft%) 4% 79% 4% Taxes (101) (1241 496) (72) 13931 (96) (1121 11061 195) (4071 Tax Ram 285% 30.4% 26.7% 25.3% 27.9% 27.9% 27.7% 280% 28.0% 27.9% Net Income Attributable to Noncontrolling Interests (1) (21 (1) 71 1 (2) 11 43) (71 Nat Income 253 282 263 210 1,008 247 290 268 240 1,046 Nat Margin 77.0% 17.6% 17.2% 93% 10.8% 10.7% 11.8% ILI% 70.2% 17.0%! % Change 47% 43% 7% 12% 26% (2%) 3% 2% 14% 4% Bask Shams Outstanding 154.4 154.4 164.0 163.2 154.0 151.4 149.6 148.7 148.2 149.4 % Change 12% 12% 1% (0%) 6% (2%) 0%) (3%) (3%) (3%) Diluted Shares Outstanding 156.7 156.7 156.4 155.6 156.5 153.0 151.3 151.1 160.6 151.6 % Charge It% 77% 0% DV 8% 12%7 (3%) (3%) 13%) 13%.1 Basic EPS $1.84 $1.83 $1.71 $1.37 $5.56 $1.63 $1.94 $1.80 $1.62 PAD % Change 31% 28% 6% 13% 19% (0%1 6% 6% 18% 7% Diluted EPS $1.61 $1.00 $1.68 $1.36 $6.44 $1.61 $1.92 $1.78 $1.60 MSS % Change 32% 29% 7% 13% 20% (0%) 7% 6% 18% 7% i Deutsche Bank Securities Inc Page 9 CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0124407 CONFIDENTIAL SDNY_GM_00270591 EFTA01462059