Core Viewpoint - Euro Manganese Inc. has announced that its Chvaletice Manganese Project has been designated a Strategic Project under the EU's Critical Raw Materials Act, enhancing its role in the European raw materials value chain and facilitating access to funding and expedited permitting processes [1][3][6]. Strategic Project Designation - The designation allows access to guidance and potential funding from various sources, including the European Investment Bank and the European Bank for Reconstruction and Development [3][9]. - Strategic Project status ensures that permitting processes adhere to deadlines set in the CRMA, reducing scheduling risks associated with permitting [3][9]. Importance of the CRMA - The CRMA, effective since May 2024, identifies high-purity manganese as a strategic raw material and manganese as a critical raw material, aiming to enhance the EU's supply security and diversify sources [4][9]. - The Chvaletice Project is positioned to significantly contribute to the EU's strategic and critical raw material supply independence [9]. Recent Approvals and Developments - In March 2024, the Czech Ministry of Environment approved the Environmental and Social Impact Assessment for the Chvaletice Project [5]. - The Company secured the Determination of Mining Lease permit in January 2025, marking a significant step towards full permitting [5]. - The Czech government declared the Chvaletice Manganese Deposit as strategic in March 2025 [5]. Company Vision and Goals - The Interim CEO of Euro Manganese emphasized the commitment to becoming the sole integrated European producer of high-purity manganese, essential for the transition to a greener economy [6]. - The Company aims to establish a sustainable and climate-friendly battery value chain in Europe [6][8]. Project Overview - The Chvaletice Project involves a unique waste-to-value recycling initiative, reprocessing old tailings from a decommissioned mine, and is the only sizable manganese resource in the EU [8]. - This positions the Company to support battery supply chains with critical raw materials, contributing to a circular, low-carbon economy [8].

Core Viewpoint - The Czech government has designated the Chvaletice manganese deposit as a Strategic Deposit, which is a significant milestone for Euro Manganese Inc. and will expedite the permitting process for the Chvaletice Project [1][3][4]. Group 1: Strategic Deposit Designation - The designation as a Strategic Deposit streamlines the permitting process and facilitates timely actions for project development [3][7]. - The approval of the Environmental and Social Impact Assessment (ESIA) in March 2024 and the Determination of Mining Lease permit in January 2025 are crucial steps towards full permitting [3][4]. - The designation enhances predictability in the permitting process, allowing for expedited approvals and reduced administrative burdens [8]. Group 2: Company Overview - Euro Manganese is focused on producing high-purity manganese for the electric vehicle industry and is advancing the Chvaletice Manganese Project in the Czech Republic [5]. - The Chvaletice Project involves reprocessing old tailings from a decommissioned mine and is the only sizable manganese resource in the European Union, positioning the company strategically for battery supply chains [6]. Group 3: Benefits of Strategic Deposit Status - The designation allows for priority in obtaining permits, reducing project preparation and mining initiation time [8]. - It streamlines coordination between authorities, minimizing bureaucratic obstacles and assessment duplication [8]. - Special legislative procedures may apply, enhancing the predictability and speed of the permitting process, which is critical for energy security and industrial needs [8].

Core Viewpoint - Euro Manganese Inc. is conducting a brokered and conditional placement to raise approximately C$5.9 million (A$6.5 million) for the development of the Chvaletice Manganese Project and securing additional offtake agreements [2][7][8] Group 1: Equity Raising Details - The Conditional Placement will issue approximately 94.1 million New Shares and 72.7 million New CDIs at a price of C$0.036 (A$0.039) per New Security [9][13] - The company plans to offer existing eligible shareholders a Share Purchase Plan (SPP) to raise an additional C$3.6 million (A$4.0 million) at the same price [3][11] - Completion of the Equity Raising is contingent upon raising a minimum of C$8.0 million (A$8.8 million) in total and obtaining shareholder approval at the upcoming annual general meeting [4][7] Group 2: Use of Proceeds - Proceeds from the Conditional Placement and SPP will be allocated for ongoing development of the Chvaletice Manganese Project and customer engagements to secure additional offtake term sheets and strategic investments [2][8][16] Group 3: Shareholder Participation and Warrant Issuance - Investors will receive one warrant to purchase an additional common share or CDI for every New Security subscribed, with an exercise price of C$0.045 per warrant [5][12] - The SPP allows eligible shareholders to subscribe for up to A$30,000 worth of New CDIs without incurring brokerage fees [11][14] Group 4: Management and Strategic Changes - Rick Anthon, a veteran in the battery metals industry, will join as Chairman of the Board following the completion of the Conditional Placement [25][26] - The appointment is expected to enhance the company's strategic direction as it advances the Chvaletice Manganese Project [28] Group 5: EBRD Involvement - The European Bank for Reconstruction and Development (EBRD) is participating with a subscription of approximately C$3.1 million (A$3.5 million), increasing its ownership in the company to 19.99% [2][7][22] - EBRD will also be granted certain offtake rights for up to 20% of the company's production as part of a project support agreement [21][22]

Financial Performance - In 2024, Eastman reported sales revenue of $9.4 billion, EBIT of $1.3 billion, and net earnings of $905 million, with diluted earnings per share at $7.67[20]. - Sales revenue increased by 2% in 2024 to $9,382 million compared to $9,210 million in 2023, driven by higher sales volume offset by lower selling prices[200]. - EBIT excluding non-core and unusual items rose to $1,298 million in 2024 from $1,097 million in 2023, primarily due to higher sales volume and lower raw material costs[200]. - Net earnings attributable to Eastman increased to $905 million in 2024, with diluted EPS rising to $7.67, compared to $894 million and $7.49 in 2023[202]. - Gross profit for 2024 was $2,290 million, an 11% increase from $2,061 million in 2023, with gross profit excluding non-core items also increasing by 11%[207]. - The company generated $1.3 billion in cash from operating activities in 2024, compared to $1.4 billion in 2023[202]. Sustainability Initiatives - Eastman operates one of the world's largest molecular recycling facilities, enhancing its sustainability initiatives[19]. - The company has committed to reducing its absolute scope 1 and scope 2 GHG emissions by approximately one-third by 2030, aiming for carbon neutrality by 2050[24]. - Eastman introduced several innovative products, including Tritan™ Renew copolyester and Naia™ biodegradable fiber, focusing on sustainability and circular economy[22]. - The AM segment is positioned to benefit from sustainability innovations through molecular recycling technologies, enabling waste plastics to be recycled into specialty plastics[33]. - The company continues to focus on molecular recycling technologies as a key area of investment for sustainable growth[199]. Market Presence and Customer Base - Approximately 60% of 2024 sales revenue was generated from outside the United States and Canada[20]. - The top 100 customers accounted for approximately 60% of the Company's 2024 sales revenue, with no single customer exceeding 10% of consolidated sales revenue[79]. - The Fibers segment's 2024 sales revenue is significantly dependent on its top 10 customers, which account for approximately 60% of total sales[48]. Innovation and Product Development - Eastman's innovation-driven growth model emphasizes leveraging technology platforms and engaging in application development to enhance market presence[21]. - The company launched electronic grade isopropyl alcohol, providing U.S. semiconductor manufacturers with a domestically made solvent[44]. - The company introduced Eastman Esmeri™, a biodegradable cellulosic biopolymer for personal care applications, enhancing performance and eco-friendliness[44]. - The AFP segment focuses on producing high-value additives that provide critical functionality, leveraging strong customer relationships for recurring business[36]. - The company leverages proprietary cellulosic biopolymers and spinning technology to optimize manufacturing efficiencies and product innovation[54]. Operational and Financial Management - The company aims to maintain a strong financial position with a disciplined approach to capital allocation, prioritizing dividends, growth opportunities, and share repurchases[27]. - Raw materials and energy costs represented approximately 45% of total operational costs in 2024[66]. - Eastman has a robust portfolio of specialty businesses, managed across four operating segments: Advanced Materials, Additives & Functional Products, Chemical Intermediates, and Fibers[28]. - The Company employs dividends and share repurchases as key strategies to return value to stockholders[148]. Environmental and Regulatory Compliance - Eastman's cash expenditures related to environmental protection and improvement were $307 million in 2024, including environmental capital expenditures of approximately $70 million[85]. - The Company is subject to significant governmental laws and regulations that require substantial expenditures for compliance, impacting its competitive position[80]. - Compliance with complex health, safety, and environmental regulations may lead to significant expenditures and operational restrictions[112]. - Climate change poses physical and regulatory risks that could adversely affect Eastman's operations and financial condition[115]. Employee and Corporate Governance - The Company's global employee population is approximately 14,000, with 73% located in the United States and Canada, 14% in Europe, the Middle East, and Africa, 10% in Asia Pacific, and 3% in Latin America[75]. - In 2024, female representation globally was 40% in professional roles, 29% in leadership roles, and 22% at the executive level[75]. - Eastman’s commitment to a "zero-incident mindset" emphasizes the health, safety, and well-being of its employees, fostering a culture of accountability[86]. - The Board of Directors provides oversight of the cybersecurity program, receiving updates on performance and industry trends at least quarterly[123]. Risks and Challenges - Eastman faces significant risks related to foreign trade restrictions, which may reduce demand and increase costs for impacted products[97]. - The company is subject to operational risks common in chemical manufacturing, including potential disruptions from natural disasters and supply chain interruptions[98]. - Cybersecurity risks remain a concern, with potential incidents leading to unauthorized access and financial damage[101]. - Legal proceedings and claims could adversely affect Eastman's financial condition and operational results[105]. - Acquisitions and divestitures pose risks, including potential impairment of goodwill and increased costs from transition[107]. Financial Position and Assets - The Company had $349 million in indefinite-lived intangible assets as of December 31, 2024, with no impairment identified during the fourth quarter of 2024[161]. - Eastman reported $3.6 billion of goodwill as of December 31, 2024, with no impairments identified during the fourth quarter testing[159]. - The Company conducts annual goodwill impairment testing, with fair values exceeding carrying values for all reporting units tested in 2024[159]. - Estimated future environmental expenditures for undiscounted remediation costs range from $252 million to $495 million, with a best estimate of $252 million as of December 31, 2024[164].

Core Viewpoint - Eastman Chemical Company (EMN) reported a strong fourth-quarter performance for 2024, with net income increasing to $330 million or $2.82 per share, surpassing the previous year's profits and the Zacks Consensus Estimate [1][7]. Financial Performance - Adjusted earnings per share rose to $1.87 from $1.31 year-over-year, exceeding the Zacks Consensus Estimate of $1.58 [1]. - Revenues for the quarter were $2,245 million, slightly below the Zacks Consensus Estimate of $2,257 million, but showed a year-over-year increase of approximately 1.7% [2]. Segment Performance - The Additives and Functional Products division saw a 9% year-over-year increase in sales to $696 million, driven by higher sales volume and demand in the agriculture and aviation sectors, exceeding estimates [3]. - Advanced Materials unit sales increased by 2% year-over-year to $720 million, supported by innovation initiatives, although offset by a 3% decrease in selling prices [4]. - Chemical Intermediates sales decreased by 2% year-over-year to $503 million, impacted by weak end market demand, but still exceeded estimates [5]. - Fibers segment sales fell by 7% year-over-year to $321 million, with higher selling prices not enough to offset lower sales volume [6]. Annual Results - For the full year 2024, net sales reached $9,382 million, up from $9,210 million in 2023, with earnings per share increasing to $7.67 from $7.49 [7]. Cash Flow and Shareholder Returns - In 2024, EMN returned $679 million to shareholders through dividends and share repurchases, with cash flow from operating activities slightly declining to approximately $1,287 million [8]. Future Outlook - EMN anticipates modest volume growth in specialty businesses for 2025, with a focus on innovation and a commitment of $75-$100 million in EBITDA growth [9]. - The company expects 2025 EPS to range between $8 and $8.75, with cash from operations projected at around $1.3 billion [9]. Stock Performance - EMN stock has gained 9.2% over the past year, outperforming the industry, which saw a decline of 1.3% [11].

Core Viewpoint - Eastman Chemical Company held its Q4 2024 earnings conference call, discussing financial results and future expectations [2][3]. Group 1: Company Overview - The conference call featured key company participants including Mark Costa (Board Chair and CEO) and William McLain (EVP and CFO) [2]. - The financial results for Q4 and the full year of 2024 were released after market close, along with an SEC 8-K filing [3]. Group 2: Financial Reporting - The company provided a detailed presentation of its financial results, which can be accessed on its website [3]. - Forward-looking statements regarding the company's plans and expectations were highlighted, indicating that actual results may differ from projections [4].

4Q and FY 2024 financial results January 30, 2025 Prepared remarks These slides should be reviewed with the accompanying prepared remarks posted on our website. Forward-looking statements The information in this presentation and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, volumes, pricing, margins, cost reductions, expenses, taxes, ...

Core Insights - Eastman Chemical (EMN) reported revenue of $2.25 billion for Q4 2024, a year-over-year increase of 1.7% and an EPS of $1.87 compared to $1.31 a year ago, exceeding the consensus EPS estimate of $1.58 by 18.35% [1] - The reported revenue fell short of the Zacks Consensus Estimate of $2.26 billion, resulting in a surprise of -0.53% [1] - The stock has returned +1.5% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change, and currently holds a Zacks Rank 3 (Hold) [3] Revenue Breakdown - Net Sales in Chemical Intermediates were $503 million, below the average estimate of $509.87 million, reflecting a year-over-year decrease of 2% [4] - Net Sales in Fibers were $321 million, compared to the average estimate of $339.88 million, showing a year-over-year decline of 7.2% [4] - Net Sales in Advanced Materials reached $720 million, exceeding the estimated $707.12 million, marking a +2.1% change year over year [4] - Net Sales in Additives & Functional Products were $696 million, surpassing the average estimate of $664.14 million, with an increase of +8.8% year over year [4] - Net Sales in Other categories were $5 million, exceeding the two-analyst average estimate of $3.50 million, representing a significant year-over-year increase of +66.7% [4] Adjusted EBIT Performance - Adjusted EBIT for Additives & Functional Products was $128 million, compared to the average estimate of $97.01 million [4] - Adjusted EBIT for Advanced Materials was $107 million, exceeding the average estimate of $94.04 million [4] - Adjusted EBIT for Chemical Intermediates was $20 million, below the average estimate of $29.66 million [4] - Adjusted EBIT for Other categories was -$53 million, worse than the estimated -$43.80 million [4] - Adjusted EBIT for Fibers was $103 million, slightly above the average estimate of $101.80 million [4]

Group 1: Earnings Performance - Eastman Chemical reported quarterly earnings of $1.87 per share, exceeding the Zacks Consensus Estimate of $1.58 per share, and up from $1.31 per share a year ago, representing an earnings surprise of 18.35% [1] - The company posted revenues of $2.25 billion for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.53%, but up from $2.21 billion year-over-year [2] - Over the last four quarters, Eastman Chemical has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - Eastman Chemical shares have increased by approximately 1.5% since the beginning of the year, compared to the S&P 500's gain of 2.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.88 on revenues of $2.39 billion, and for the current fiscal year, it is $8.52 on revenues of $9.81 billion [7] Group 3: Industry Context - The Zacks Industry Rank indicates that the Chemical - Diversified sector is currently in the bottom 8% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Eastman Chemical's stock performance [5] - The estimate revisions trend for Eastman Chemical is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]

Financial Performance - Sales revenue for Q4 2024 was $2,245 million, a 2% increase from $2,207 million in Q4 2023, while full-year revenue rose to $9,382 million from $9,210 million, also a 2% increase[3][6] - Adjusted EBIT for Q4 2024 was $305 million, up 37% from $222 million in Q4 2023, and for the full year, it increased to $1,298 million from $1,097 million, a 18% rise[3][4] - Adjusted earnings per diluted share for Q4 2024 were $1.87, a 43% increase from $1.31 in Q4 2023, while full-year adjusted EPS rose to $7.89 from $6.40, a 23% increase[3][4] - Gross profit for Q4 2024 was $554 million, compared to $464 million in Q4 2023, reflecting a 19.4% increase; total gross profit for 2024 was $2,290 million, up 11.1% from $2,061 million in 2023[33] - Net earnings attributable to Eastman for Q4 2024 were $330 million, an increase from $310 million in Q4 2023; total net earnings for 2024 were $905 million, compared to $894 million in 2023[33] - Basic earnings per share for Q4 2024 rose to $2.85, up from $2.63 in Q4 2023; diluted earnings per share increased to $2.82 from $2.61[33] - The total earnings before interest and taxes for the twelve months ended 2024 were $1,278 million, a slight decrease from $1,302 million in 2023[46] - For the twelve months of 2024, the company reported net earnings attributable to Eastman of $905 million, with a diluted earnings per share of $7.67, compared to $894 million and $7.49 in 2023, representing a 1.2% increase in net earnings[56] - Non-GAAP earnings for 2024, excluding non-core and unusual items, were $931 million, with a diluted earnings per share of $7.89, up from $763 million and $6.40 in 2023, indicating a 22% increase[56] Cash Flow and Shareholder Returns - The company generated approximately $1.3 billion in cash from operating activities in 2024, slightly down from $1.4 billion in 2023[5][23] - Approximately $700 million was returned to shareholders in 2024 through dividends and share repurchases[5][23] - The company generated $1,287 million in net cash provided by operating activities for the twelve months of 2024, compared to $1,374 million in 2023, showing a decline of 6.3%[61] - The company reported a cash and cash equivalents balance of $837 million at the end of 2024, up from $548 million at the end of 2023[61] Segment Performance - Advanced Materials segment sales for Q4 2024 were $720 million, a 2% increase from $705 million in Q4 2023; total sales for this segment in 2024 reached $3,050 million, up 4% from $2,932 million in 2023[34] - Additives & Functional Products segment sales increased by 9% in Q4 2024 to $696 million, compared to $640 million in Q4 2023; total sales for 2024 were $2,862 million, a 1% increase from $2,834 million in 2023[34] - Chemical Intermediates segment sales decreased by 2% in Q4 2024 to $503 million, down from $513 million in Q4 2023; total sales for 2024 were $2,134 million, consistent with $2,143 million in 2023[34] - Fibers segment sales declined by 7% in Q4 2024 to $321 million, compared to $346 million in Q4 2023; total sales for 2024 were $1,318 million, up from $1,295 million in 2023[34] Operational Efficiency and Future Projections - The adjusted EBIT margin improved by 350 basis points in Q4 2024 and 190 basis points for the full year, driven by volume/mix growth and operational efficiencies[4][5] - The Kingsport methanolysis facility operated effectively in Q4 2024, positioning it for strong earnings growth in 2025[5][24] - For 2025, the company projects adjusted diluted EPS to be between $8.00 and $8.75, with cash from operations expected to be approximately $1.3 billion[24] - The company aims for $75 million to $100 million in EBITDA growth from its circular platform by 2025[24] - The company plans to reduce structural costs to offset inflation while continuing to invest in growth and capabilities for long-term value creation[24] Tax and Impairments - The effective tax rate for Q4 2024 was reported at -11%, influenced by various adjustments, including a tax benefit from non-core items[53] - The effective tax rate for the twelve months of 2024 was 16%, down from 18% in 2023, indicating a favorable tax environment for the company[56] - The company incurred $51 million in asset impairments and restructuring charges in 2024, compared to $37 million in 2023, reflecting ongoing restructuring efforts[56] Debt and Investments - Total borrowings increased to $5,017 million in 2024 from $4,846 million in 2023, while net debt decreased to $4,180 million from $4,298 million[62] - The company’s investing activities resulted in a net cash outflow of $534 million in 2024, compared to an outflow of $432 million in 2023, indicating increased investment activity[61] Miscellaneous - The company reported a net gain on divested business of $0 in Q4 2024, compared to a loss of $323 million in Q4 2023[33] - Twelve months 2024 included inventory adjustment charges of $7 million related to the planned closure of a production line, impacting overall financial performance[33] - In Q4 2024, the company's earnings before interest and taxes (EBIT) were $349 million, a decrease of 26.8% from $477 million in Q4 2023[46] - The total EBIT excluding non-core and unusual items for Q4 2024 was $305 million, compared to $222 million in Q4 2023, reflecting a 37.5% increase[48] - The adjusted EBIT margin for the Advanced Materials segment in Q4 2024 was 14.9%, up from 9.2% in Q4 2023[48] - The Additives & Functional Products segment reported an adjusted EBIT of $128 million in Q4 2024, with a margin of 18.4%, compared to $67 million and 10.5% in Q4 2023[48] - The Fibers segment achieved an adjusted EBIT margin of 32.1% in Q4 2024, slightly down from 32.7% in Q4 2023[48] - The company experienced a significant decrease in trade receivables, with an increase of $182 million in Q4 2024, compared to a $58 million increase in Q4 2023[61]