Increasing emphasis on relatively stable, high-margin, specialty chemicals Strong market positions and pricing power in most segments Vertical integration and benefit of low-cost feedstocks Good product, end market, and geographic diversity of sales, but some manufacturing site concentration associated with the large Kingsport, Tennessee facility Track record of prudent financial policies Significant debt leverage (about 3.5x pro forma for the $4.8 billion acquisition of Solutia Inc. in July 2012) Expectation that Eastman will generate substantial discretionary cash flow (helped by cost and tax synergies associated with the Solutia acquisition) and apply it primarily to debt reduction during the next two years The outlook is stable, based on our expectation that Eastman will generate $400 million or more of discretionary cash
