a world of innovation emndatabook16 - eastman.com paraxylene, polyethylene terephthalate film,...

EMNDATABOOK16a world of innovation

2

Eastman at a glance 3

Regions 5

Financial information 6

Product and raw material information 7

Segment information (2016–2013) 8

Exhibit A (Notes to segment information) 12

Stockholder information 15

Contents

Eastman Chemical Company’s products and operations are managed and reported in four segments— Additives & Functional Products, Advanced Materials, Chemical Intermediates, and Fibers.

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Additives & Functional Products2016 Sales Revenue: $2,979 Million2016 Adjusted Operating Earnings: $611 Million*2016 Depreciation & Amortization Expense $208 Million

Key products: Coatings & Inks Additives: Texanol™, ketones, esters, glycol ethers, and alcohol solvents; cellulosic, polyester, and polyolefin-based polymers Adhesives Resins: Hydrocarbon resins (Piccotac™, Regalite™, Eastotac™), Eastoflex™ Tire Additives: Crystex® insoluble sulfur, Santoflex® antidegradants, and Impera™ performance resins Care Chemicals Additives: Alkylamine derivatives Specialty Fluids: Eastman Therminol™ heat transfer fluids, Skydrol™ aviation hydraulic fluids, and aviation turbine oils Animal Nutrition: Formic acid solutions Crop Protection: Alkylamine derivatives

Key markets & applications: Transportation: Insoluble sulfur, antidegradants, and performance resins used in rubber tire manufacturing, polymers and solvents used in OEM and refinish coatings, aviation fluids Consumables: Resins used in hygiene and packaging adhesives Building & Construction: Solvents used in architectural coatings, resins for construction adhesives and interior flooring Agriculture: Soil fumigants, fungicides, and plant-growth regulators Industrial Chemicals & Processing: Heat transfer fluids for chemical processes Energy, Fuels & Water: Alkylamine derivatives for water treatment Personal Care/Health & Wellness: Amine- based intermediates used in personal care applications Consumer Durables: Polymers and solvents used in coatings, wood, and industrial applications

Key raw materials: Alcohols, alpha methylstyrene, alkylamines, ammonia, aniline, benzene, C9 resin oil, CS2 caustic soda, ethylene oxide, formic acid, gum rosin, methanol, methyl isobutyl ketone, naphthenic process oil, neo-polyol esters, nitrobenzene, paraxylene, piperylene, phosphorous, propane, propylene, sulfur, styrene, sulfuric acid, wood pulp

Key competitors: Coatings & Inks Additives: BASF SE, The Dow Chemical Company Adhesives Resins: Exxon Mobil Corp., Kolon Industries, Inc. Tire Additives: Oriental Carbon & Chemicals, Ltd., Shikoku Chemicals Corporation, Jiangsu Sinorgchem Technology Co. Ltd., Korea Kumho Petrochemical Co. Ltd., Lanxess AG Care Chemicals Additives: BASF SE, The Dow Chemical Company, Huntsman Specialty Fluids: The Dow Chemical Company, Exxon Mobil Corp. Animal Nutrition: BASF SE, Perstorp Crop Protection: The Dow Chemical Company, Bayer, Agro-Kanesho Co. Ltd.

Advanced Materials2016 Sales Revenue: $2,457 Million2016 Adjusted Operating Earnings: $471 Million2016 Depreciation & Amortization Expense $160 Million

Key products: Specialty Plastics: Copolyesters (including Eastman Tritan™), cellulose esters Advanced Interlayers: PVB sheet used as an adhesive interlayer in the production of laminated safety glass and primarily marketed under the Saflex® brand name Performance Films: Aftermarket window film products including LLumar®, V-KOOL®, and SunTek® brands

Key markets & applications: Transportation: Interlayers for automotive safety glass, automotive acoustic glass, and HUD, aftermarket window film Consumables: Copolyesters used in consumer packaging, personal care and cosmetics packaging, in-store fixtures, and displays Building & Construction: PVB for architectural interlayers Consumer Durables: Copolyesters and cellulose esters used in consumer housewares and appliances Personal Care/Health & Wellness: Copolyesters for medical applications Electronics: Cellulose esters for displays

Key raw materials: 2-EH, butyraldehyde, cellulose, ethanol, ethylene glycol, paraxylene, polyethylene terephthalate film, polyvinyl alcohol, purified terephthalic acid, triethylene glycol, vinyl acetate monomer

Key competitors: Specialty Plastics: Bayer AG, Styron LLC, Evonik Industries AG, Saudi Basic Industries Corporation, Mitsubishi Chemical Corporation, S.K. Chemical Industries, Sichuan Push Acetati Company Limited, Daicel Chemical Industries Ltd. Advanced Interlayers: Sekisui Chemical Co., Kuraray Co Performance Films: 3M Company, Saint-Gobain S.A., Garware Chemicals Limited

Eastman at a glanceChemical Intermediates2016 Sales Revenue: $2,534 Million2016 Adjusted Operating Earnings: $171 Million2016 Depreciation & Amortization Expense $157 Million

Key products: Intermediates: Oxo alcohols and derivatives, acetic acid and derivatives, acetic anhydride, ethylene, glycol ethers, and esters Plasticizers: Primary non-phthalate and phthalate plasticizers (Eastman 168™, Eastman DOP), niche non-phthalate plasticizers (Benzoflex™, Eastman TXIB™, Eastman Effusion™) Functional Amines: Alkylamines

Key markets & applications: Industrial Chemicals & Processing: Olefin & acetyl-based intermediates for industrial processing Building & Construction: Intermediates for paint/coating applications, solvents used in architectural coatings, construction chemicals, building materials, non-phthalate plasticizers used in interior surfaces Personal Care/Health & Wellness: Plasticizers for medical applications, acetyls for pharmaceuticals Food, Feed, & Agriculture: Agrochemicals and various industrial intermediates Consumables: Plasticizers in food contact applications and food packaging, polymer intermediates for consumer packaging

Key raw materials: Acetone, ammonia, butanol, coal, ethane, ethanol, metaxylene, methanol, natural gas, paraxylene, propane, propylene

Key competitors: Intermediates: LyondellBasell Industries, BASF SE, The Dow Chemical Company, Oxea, BP plc, Celanese Corporation, Lonza, Flint Hills Resources Plasticizers: BASF SE, Exxon Mobil Corp., LG Chem, Ltd., Emerald Performance Materials Functional Amines: BASF SE, Chemours, U.S. Amines, Oxea

Fibers2016 Sales Revenue: $992 Million2016 Operating Earnings: $310 Million2016 Depreciation & Amortization Expense $51 Million

Key products: Acetate Tow; Acetate Yarn; Acetyl Chemical Products: Acetic anhydride, acetylation-grade acetic acid, cellulose diacetate flake, triacetin plasticizers

Key markets & applications: Tobacco: Cigarette filters Consumables: Home furnishings, industrial fabrics, and apparel Personal Care/Health & Wellness: Medical tape

Key raw materials: High-sulfur coal, methanol, wood pulp

Key competitors: Acetate Tow: Celanese Corporation, Solvay S.A., Daicel Corporation Acetate Yarn: UAB Dirbtinis Pluostas, Industrias del Acetato de Celulosa S.A., Mitsubishi Rayon Co. Ltd. Acetyl Chemical Products: Jiangsu Ruijia Chemistry Co., Ltd., Polynt SPA, Daicel Corporation, Celanese Corporation, Solvay S.A.

Transportation 20%Consumables 16%Building & Construction 14%Tobacco 11%Industrial Chemicals & Processing 10%Personal Care/Health & Wellness 7% Consumer Durables 7% Food, Feed, & Agriculture 6%Energy, Fuels, & Water 4%Electronics 3%Other 2%

Eastman Chemical Company 2016 Sales Revenue by End Market

*Adjusted for non-core items. See Page 8 for reconciliation to GAAP operating earnings.

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Eastman at a glance (continued)

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RegionsGlobal manufacturing locations

2016 2015 2014 2013 United States and Canada 4,025 4,350 4,384 4,290

Asia Pacific 2,163 2,333 2,540 2,584

Europe, Middle East, and Africa 2,305 2,422 2,091 1,975

Latin America 515 543 512 501

Eastman Chemical Company 9,008 9,648 9,527 9,350

Sales revenue by region(Dollars in millions)

North America

Latin America Asia Pacific

Europe,Middle East,

and Africa

50

World headquarters

Alvin, TX

Anniston, AL

Antwerp, Belgium

Axton, VA

Canoga Park, CA

Cartersville, GA

Chestertown, MD

Columbia, SC

Dresden, Germany

Fengxian, China

Franklin, VA

Ghent, Belgium

Hefei, China

Indianapolis, IN

Itupeva, Brazil

Jefferson, PA

Jurong Island, Singapore

Kashima, Japan

Kingsport, TN

Kohtla-Järve, Estonia

Nienburg, Germany

Oulu, Finland

Pace, FL

Santo Toribio, Mexico

São Paulo Mauá, Brazil

Sauget, IL

Shenzhen, China

Springfield, MA

St Gabriel, LA

Sun Prairie, WI

Suzhou, China

Texas City, TX

Trenton, MI

Ulsan, Korea

Uruapan, Mexico

Watertown, NY

Wuhan, China

Yixing, China

Zibo, China

Kuantan, Malaysia

Lemoyne, AL

Leuna, Germany

Linden, NJ

Longview, TX

Martinsville, VA

Middlesburg, The Netherlands

Monongahela, PA

Nanjing, China

Newport, Wales

6

Financial information

(Dollars in millions except per share amounts) 2016 2015 2014 2013

Selected operating items

Sales $9,008 $9,648 $9,527 $9,350

Operating earnings 1,383 1,384 1,162 1,862

Mark-to-market pension and other postretirement benefits

losses (gains), net 97 115 304 (383)

Asset impairments and restructuring charges, net 45 183 77 76

Acquisition integration and transaction costs 9 28 46 36

Additional costs of acquired inventories – 7 24 –

Operating earnings excluding non-core items 1,534 1,717 1,613 1,591

Depreciation and amortization expense 580 571 450 433

Diluted earnings from continuing operations per share 5.75 5.66 4.95 7.44

Mark-to-market pension and other postretirement benefits losses (gains),

net of tax 0.46 0.47 1.34 (1.49)

Asset impairments and restructuring charges, net of tax 0.19 1.00 0.42 0.34

Acquisition integration, transaction, and financing costs, net of tax 0.04 0.12 0.26 0.15

Early debt extinguishment and other related costs, net of tax 0.37 – – –

Cost of disposition of claims against discontinued Solutia operations, net of tax 0.02 – – –

Gain from sale of equity investment in Primister joint venture, net of tax (0.07) – – –

Additional costs of acquired inventories, net of tax – 0.03 0.10 –

Diluted earnings from continuing operations per share

excluding non-core items 6.76 7.28 7.07 6.44

Olefin feedstocks

Wood pulpParaxylene

CoalNatural gas

Methanol

Other raw materials

Polyvinyl alcohol

Product and raw material information

Eastman Chemical Company material flows

2016 total cost of operations*

* Total cost of operations includes cost of sales, SGA, and R&D excluding non-core items.

Top purchased raw materials and energy

-

Paraxylene/Oxygen

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2016 segment information

(Dollars in millions) Qtr. Qtr. Qtr. Qtr. YearAdditives & Functional ProductsSales $737 $770 $752 $720 $2,979Operating earnings 153 168 160 120 601 Asset impairments and restructuring (gains) charges, net (2)1 – – 122 101,2

Operating earnings excluding non-core items 151 168 160 132 611Depreciation and amortization expense 208

Advanced MaterialsSales $589 $646 $638 $584 $2,457 Operating earnings 108 132 141 90 471 Depreciation and amortization expense 160

Chemical IntermediatesSales $620 $633 $638 $643 $2,534 Operating earnings 67 15 39 50 171 Depreciation and amortization expense 157

FibersSales $280 $234 $248 $230 $992 Operating earnings 86 72 79 73 310Depreciation and amortization expense 51

Other.Sales $10 $14 $11 $11 $46 Operating (loss) earnings Growth initiatives and businesses not allocated to segments (18) (24) (17) (23) (82) Pension and other postretirement benefit income (expense) and gain (loss) not allocated to operating segments 12 13 (16) (53) (44) Restructuring and acquisition integration and transaction costs (9) 0 (30) (5) (44)Operating loss before non-core items (15) (11) (63) (81) (170) Asset impairments and restructuring charges, net – – 303 5 4 35 3,4

Mark-to-market pension and other postretirement benefit plans loss, net – – 305 676 975,6

Acquisition integration and transaction costs 97 – – 9 7

Operating loss excluding non-core items (6) (11) (3) (9) (29)Depreciation and amortization expense 4

Eastman Chemical CompanySales $2,236 $2,297 $2,287 $2,188 $9,008 Operating earnings 399 376 356 252 1,383 Asset impairments and restructuring (gains) charges, net (2)1 – 303 172,4 451,2,3,4

Mark-to-market pension and other postretirement benefit plans loss, net – – 305 676 975,6

Acquisition integration and transaction costs 97 – – 0 9 7

Operating earnings excluding non-core items 406 376 416 336 1,534 Depreciation and amortization expense 580

1st 2nd 3rd 4th

Note: See Exhibit A for footnotes.

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9


(Dollars in millions) Qtr. Qtr. Qtr. Qtr. YearAdditives & Functional ProductsSales $804 $830 $794 $731 $3,159 Operating earnings 157 178 176 149 660 Depreciation and amortization expense 203

Advanced MaterialsSales $561 $647 $624 $582 $2,414 Operating earnings 68 135 98 83 384 Asset impairments and restructuring charges, net – – 181 – 181

Additional costs of acquired inventories 72 – – – 72


Chemical IntermediatesSales $782 $745 $697 $587 $2,811 Operating earnings 118 87 72 17 294 Depreciation and amortization expense 149

FibersSales $284 $299 $320 $316 $1,219 Operating earnings (loss) (7) 93 102 104 292 Asset impairments and restructuring charges (gains), net 973 (2)3 – 3 3 983 Operating earnings excluding non-core items 90 91 102 107 390 Depreciation and amortization expense 55

Other.Sales $12 $12 $12 $9 $45 Operating (loss) earnings Growth initiatives and businesses not allocated to segments (26) (22) (18) (21) (87) Pension and other postretirement benefit income (expense) and gain (loss) not allocated to operating segments 9 8 11 (104) (76) Acquisition transaction, integration, and restructuring (8) (10) (9) (56) (83)Operating loss before non-core items (25) (24) (16) (181) (246) Asset impairments and restructuring charges, net 124 25 35 506 674,5,6

Mark-to-market pension and other postretirement benefit plans loss, net – 27 – 1138 1157,8

Acquisition integration and transaction costs 89 99 69 59 289


Eastman Chemical CompanySales $2,443 $2,533 $2,447 $2,225 $9,648 Operating earnings 311 469 432 172 1,384 Asset impairments and restructuring charges, net 109 3,4 – 3,5 211,5 53 3,6 1831,3,4,5,6

Mark-to-market pension and other postretirement benefit plans loss, net – 27 – 1138 1157,8


Additional costs of acquired inventories 72 – – – 72


1st 2nd 3rd 4th


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(Dollars in millions) Qtr. Qtr. Qtr. Qtr. YearAdditives & Functional ProductsSales $608 $682 $675 $675 $2,640 Operating earnings 124 154 68 116 462 Asset impairments and restructuring (gains) charges, net – (2)1 65 2,3,4 (1)1 621,2,3,4

Additional costs of acquired inventories – 25 65 7 6 15 5,6


Advanced MaterialsSales $581 $631 $604 $562 $2,378 Operating earnings 61 80 76 59 276 Asset impairments and restructuring charges, net 10 7 – 4 4 2 7 16 4,7

Additional costs of acquired inventories – – – 1 8 1 8


Chemical IntermediatesSales $761 $761 $780 $732 $3,034 Operating earnings 81 101 111 59 352 Additional costs of acquired inventories – – – 8 9 8 9

Operating earnings excluding non-core item 81 101 111 67 360Depreciation and amortization expense 99

FibersSales $354 $386 $346 $371 $1,457 Operating earnings 117 123 112 122 474 Depreciation and amortization expense 66

Other.Sales $1 $– $8 $9 $18 Operating (loss) earnings Growth initiatives and businesses not allocated to segments (13) (15) (18) (12) (58) Pension and other postretirement benefit income (expense) and gain (loss) not allocated to operating segments 3 3 3 (302) (293) Acquisition transaction, integration, and restructuring (12) (10) (14) (15) (51)Operating loss before non-core items (22) (22) (29) (329) (402) Mark-to-market pension and other postretirement benefit plans loss, net – – – 30410 30410

Acquisition integration and transaction costs 911 1012 1213 1514 4611,12,13,14

Asset impairments and restructuring charges (gains), net 315 (5)16 215 (1)16 (1)15,16


Eastman Chemical CompanySales $2,305 $2,460 $2,413 $2,349 $9,527Operating earnings 361 436 338 27 1,162 Additional costs of acquired inventories – 25 65 16 6,8,9 245,6,8,9

Acquisition integration and transaction costs 911 1012 1213 1514 4611,12,13,14

Mark-to-market pension and other postretirement benefit plans loss, net – – – 30410 30410

Asset impairments and restructuring charges (gains), net 13 7,15 (7)1,16 71 2,3,4,15 –1,7,16 771,2,3,4,7,15,16


1st 2nd 3rd 4th

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(Dollars in millions) Qtr. Qtr. Qtr. Qtr. YearAdditives & Functional ProductsSales $623 $664 $629 $613 $2,529Operating earnings 122 142 137 110 511 Depreciation and amortization expense 122

Advanced MaterialsSales $584 $625 $583 $557 $2,349 Operating earnings 65 82 69 41 257 Asset impairments and restructuring charges (gains), net – (1)1,2 – 43 31,2,3


Chemical IntermediatesSales $748 $782 $757 $726 $3,013 Operating earnings 120 128 105 76 429 Asset impairments and restructuring charges, net – 31 – – 31

Operating earnings excluding non-core item 120 131 105 76 432Depreciation and amortization expense 98

FibersSales $346 $363 $363 $369 $1,441 Operating earnings 114 116 113 119 462Depreciation and amortization expense 65

Other.Sales $6 $6 $6 – $18 Operating (loss) earnings Growth initiatives and businesses not allocated to segments (21) (32) (20) (59) (132) Pension and other postretirement benefit income (expense) and gain (loss) not allocated to operating segments 3 3 87 301 394 Acquisition transaction, integration, and restructuring (10) (11) (12) (26) (59)Operating (loss) earnings before non-core items (28) (40) 55 216 203 Mark-to-market pension and other postretirement benefit plans loss, net – – (86)4 (297)4 (383)4

Asset impairments and restructuring charges, net 35 165,6 35 485,7 70 5,6,7



Eastman Chemical CompanySales $2,307 $2,440 $2,338 $2,265 $9,350Operating earnings 393 428 479 562 1,862 Mark-to-market pension and other postretirement benefit plans loss, net – – (86)4 (297)4 (383)4

Asset impairments and restructuring charges, net 35 181,2,5,6 35 523,5,7 761,2,3,5,6,7


Operating earnings excluding non-core items 403 454 405 329 1,591Depreciation and amortization expense 433

1st 2nd 3rd 4th

12

Exhibit A

Year Footnote

Notes to segment information

2016 1. Included in first quarter 2016 earnings is a gain of $2 million for the sale of previously impaired assets at the Crystex® research and development facility in France.

2. In fourth quarter 2016, the Company impaired a capital project resulting in a charge of $12 million.

3. In third quarter 2016, as part of the Company's previously announced plan to reduce costs primarily in 2017, the Company recognized restructuring charges of $30 million for severance.

4. In fourth quarter 2016, as part of the previously announced plan to reduce costs primarily in 2017, the Company recognized restructuring charges of $5 million primarily for severance.

5. In third quarter 2016, there was a change to a UK pension plan which triggered an interim remeasurement of the plan obligation and resulted in a $30 million mark-to-market loss.

6. Fourth quarter 2016 annual mark-to-market pension and other postretirement benefit plans valuation loss, net.

7. First quarter 2016 transaction cost is for final resolution of the 2011 Sterling Chemical, Inc. acquisition purchase price, and integration costs are for the Commonwealth Laminating & Coating, Inc. business acquired in December 2014. These costs are included in selling, general, and administrative expenses in the Statements of Earnings.

Year Footnote

2015 1. Included in third quarter 2015 earnings are indefinite-lived intangible asset impairments of $18 million to reduce the carrying value of trade names in the window films market to their estimated current fair values.

2. Included in first quarter 2015 earnings are additional costs of acquired inventories. As required by purchase accounting, acquired Commonwealth Laminating and Coating, Inc. inventories were marked to fair value. In first quarter 2015, the remaining portion of these inventories were sold resulting in an increase in cost of sales.

3. Included in first, second, and fourth quarter 2015 earnings are asset impairments and restructuring charges (gains), net for the closure of the Workington, UK, acetate tow manufacturing site.

4. Included in first quarter 2015 earnings are asset impairment and restructuring charges of $12 million resulting from the decision to discontinue a growth initiative reported in "other".

5. Included in second and third quarter 2015 earnings are severance costs primarily associated with the integration of Taminco Corporation of $2 million and $2 million, respectively.

6. Included in fourth quarter 2015 earnings are asset impairments and restructuring charges, net primarily due to severance costs for a corporate reduction in force of $51 million.

7. Included in second quarter 2015 earnings is a mark-to-market loss on a UK pension plan obligation triggered by the closure of the Workington, UK, acetate tow manufacturing facility.

8. Fourth quarter 2015 included mark-to-market pension and other postretirement benefit plans net loss.

9. Included in 2015 earnings are integration and transaction costs primarily for the completed acquisitions of Taminco Corporation and Commonwealth Laminating & Coating, Inc.

13

Year Footnote


2014 1. Included in second and fourth quarters 2014 earnings are gains of $2 million and $1 million respectively, related to the sale of previously impaired assets at a former polymers production facility in China.

2. Included in third quarter 2014 earnings are asset impairments and restructuring charges of $42 million for costs of the closure of a Crystex® research and development facility in France.

3. Included in third quarter 2014 earnings is a $22 million asset impairment of the Crystex® tradename.

4. Included in third quarter 2014 earnings are asset impairments and restructuring charges of $1 million and $4 million in the Additives & Functional Products and Advanced Materials segments, respectively, related to a change in estimate of certain costs of the fourth quarter 2012 termination of the operating agreement for the São José dos Campos, Brazil, site.

5. As required by purchase accounting, acquired BP plc’s global aviation turbine engine oil business inventories were marked to fair value. Included in second and third quarters 2014 earnings were approximately $2 million and $6 million respectively, for the additional costs of inventories from the acquired global aviation turbine engine oil business inventories that were sold in 2014, resulting in an increase in cost of sales.

6. As required by purchase accounting, acquired Taminco Corporation inventories were marked to fair value. Included in fourth quarter 2014 earnings are additional costs of these inventories. Approximately $7 million was sold in 2014 resulting in an increase in cost of sales.

7. Included in first and fourth quarters 2014 earnings are asset impairments and restructuring charges of $10 million and $2 million respectively, primarily for the closure of a production facility in Taiwan for the Flexvue™ performance films product line."

8. As required by purchase accounting, acquired Commonwealth Laminating and Coating, Inc. inventories were marked to fair value. Included in fourth quarter 2014 earnings are additional costs of these inventories. Approximately $1 million was sold in 2014 resulting in an increase in cost of sales.

9. Included in fourth quarter 2014 earnings are approximately $8 million additional costs of inventories from the acquired Taminco Corporation inventories sold in 2014, resulting in an increase in cost of sales.

10. Fourth quarter 2014 mark-to-market net loss for pension and other postretirement benefit plans actuarial adjustments.

11. Included in first quarter 2014 earnings are integration costs of $9 million for the acquired Solutia Inc. business.

12. Included in second quarter 2014 earnings are transaction costs of $3 million for the acquisition of the global aviation turbine engine oil business from BP plc in June 2014 and integration costs of $7 million for the acquired Solutia Inc. and the global aviation turbine engine oil businesses.

13. Included in third quarter 2014 earnings are transaction costs of $7 million for the pending acquisition of Taminco Corporation and Commonwealth Laminating & Coating, and for the completed acquisition of the global aviation turbine engine oil business from BP plc. Included in third quarter 2014 earnings are integration costs of $5 million for the acquired Solutia Inc. and global aviation turbine oil businesses.

14. Included in fourth quarter 2014 earnings are transaction costs of $12 million primarily for the completed acquisitions of Taminco Corporation, Commonwealth Laminating & Coating, and the global aviation turbine engine oil business from BP plc. and integration costs of $3 million primarily for the acquired businesses including Solutia Inc., the global aviation turbine engine oil business from BP plc, Commonwealth Laminating & Coating, Inc. and Taminco Corporation.

15. Included in first and third quarters 2014 earnings are restructuring charges of $3 million and $2 million, respectively, for severance associated with the continued integration of Solutia Inc.

16. Included in second and fourth quarters 2014 earnings are gains of $5 million and $1 million respectively, on sales of previously impaired assets at the former photovoltaics production facility in Germany.

Exhibit A (continued)

14

Year Footnote


2013 1. Included in second quarter 2013 earnings are restructuring charges of $2 million and $3 million in the Advanced Materials and Chemical Intermediates segments, respectively, primarily related to severance.

2. Included in second quarter 2013 earnings is a reduction in previous charges associated with the fourth quarter 2012 termination of the operating agreement for the São José dos Campos, Brazil, site, which is reported as reduction of $3 million in the Advanced Materials segment.

3. Fourth quarter 2013 earnings include asset impairments of $4 million in the Advanced Materials segment for the fourth-quarter decision to terminate efforts to develop a continuous resin process in Kuantan, Malaysia, and Antwerp, Belgium.

4. Fourth quarter 2013 mark-to-market includes gains for pension and other postretirement benefit plans actuarial adjustments. Third quarter and twelve months 2013 include an $86 million mark-to-market gain, net, interim remeasurement of Eastman's other postretirement benefit plan obligation, triggered by a plan change in life insurance benefits.

5. First, second, third, and fourth quarters 2013 earnings include restructuring charges of $3 million, $3 million, $3 million, and $15 million respectively, primarily for severance associated with the continued integration of Solutia, Inc.

6. Second quarter 2013 earnings include asset impairments and restructuring charges of $13 million primarily for the closure of a production facility in Germany for the photovoltaics line.

7. Fourth quarter 2013 earnings include asset impairment and restructuring charges of approximately $30 million for management’s decision not to pursue its Perennial Wood™ growth initiative.

8. Included in 2013 earnings are transaction and integration costs related to the acquisition of Solutia Inc.

Exhibit A (continued)

15

Stockholder information

Stock exchange listingEastman Chemical Company common stock is listed and traded on the New York Stock Exchange under the ticker symbol EMN.

DividendsQuarterly dividends on common stock, if declared by the Board of Directors, are usually paid on or about the first business day of the month following the end of each quarter. On a split-adjusted basis, dividends declared were $1.89 in 2016, $1.66 in 2015, $1.45 in 2014, and $1.25 in 2013.

Corporate officesEastman Chemical Company200 S Wilcox DriveP.O. Box 431Kingsport, TN 37660-5280 U.S.A.www.eastman.com

Stock transfer agent and registrarInquiries and changes to stockholder accounts should be directed to our transfer agent:

American Stock Transfer & Trust Company59 Maiden LaneNew York, NY 10038

In the United States: 800-937-5449Outside the United States: (1) 212-936-5100 or (1) 718-921-8200

www.amstock.com

Eastman stockholder information877-EMN-INFO (877-366-4636)www.eastman.com

Eastman databookEastman Chemical Company’s databook has been developed to assist investors in understanding and evaluating Eastman. It provides financial and operations data and other information about the company and its operating segments. The notes to the financial statements are not included. Complete financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations appear in Eastman’s Annual Report on Form 10-K and Annual Report to Stockholders, both of which are available on www.eastman.com.

Eastman Investor Relationswww.eastman.com/Company/Investors/Pages/Introduction.aspx

877-366-4636

Gregory A. RiddleVice President, Investor Relations and Corporate [email protected]

Louis J. ReavisInvestor Relations [email protected]

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Eastman Chemical CompanyP O Box 431

Kingsport, Tennessee 37662-5280 U S A (1) 423-229-2000 | www eastman com

© 2017 Eastman Chemical Company Eastman brands referenced herein are trademarks of Eastman Chemical Company or one of its subsidiaries The ® used on Eastman brands denotes registered trademark status in the U S ; marks may also be registered internationally Non-Eastman brands referenced herein are trademarks of their respective owners EMN-CR-4273 | 2/17

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