Energy Materials from the Chemical Industry

1. Energy Materials from the Chemical Industry Eastman Ventures Investing into the Future on Behalf of Eastman Chemical Company Joel Serface jserface@eastman.com

2. Agenda • Background • Philosophy • Applications

3. Eastman Chemical Company • History • Spun out of Eastman Kodak in 1994 • Publicly-traded company on the NYSE • $5.4B in global revenues • Innovator of more than 1200 products • Headquartered in Kingsport, TN • Originally built where the raw materials were (trees) • Transitioned to natural gas and coal as feedstocks • Produce our own energy • Global Presence • Manufacturing locations in North America, South America, Europe, and Asia • 15,800 employees • 41 sites worldwide • In order to compete with companies 6X our size, Eastman must… • Execute more nimbly • Innovate more capital efficiently

4. Eastman Ventures Highlights • Investing into the future on behalf of Eastman Chemical Company • Eastman Ventures identifies and invests into “greener and smarter” technologies that can transform Eastman Chemical • Commitment from the top • People • 6 investment team members in US • Business development managers throughout the world • Global themes, global teams • Portfolio • 25 direct investments linked to corporate growth and innovation objectives • 80% of portfolio companies have executed commercial agreements with Eastman • 6 indirect investments into VC funds as a conduit to innovation • Includes funds in Europe, Asia, and Latin America

5. Philosophy • Nanotech has been and will continue to impact the chemical industry • Catalysts = drive efficiency • Enzymes = control reactions • Evolve from chemicals to smarter solutions • Innovate or die • Small is beautiful • Lower resource consumption = lower environmental impact • Make what you intend to make and nothing else! • Evolve from thermodynamics experiments to molecular manufacturing • Products that keep on giving • Renewable • Re-cyclable • Produce more than they consume

6. From Philosophy to Products • Today • Biodegradable and recyclable materials • Continuous effort to reduce of waste / increase efficiency • Increased efficiency (process technologies) • Best in class coal gasification technologies • Tomorrow • Natural chemistry and biotechnology • New sustainable / cleantech products • Recycled and renewable feedstocks • Intelligent materials that provide more functionality • Self-assembling materials The future will increasingly leverage nanotech and biotech approaches.

7. IT Life Sciences Energy and Environmental Technologies Advanced Materials / Nanotech Energy Tech Areas of Investment • Energy generation / storage technologies • Fuel cells • Batteries • Photovoltaics • Fuels for the H2 economy • Energy reduction technologies • Solid state lighting • Organic electronics • Energy transport • Advanced coatings • Reduces power requirements for buildings and electronics • Use less energy to manufacture

8. Nanotech / Energy Credentials • Eastman Ventures • Konarka -- thin film photovoltaic manufactured on plastic • Optiva -- opto-electronic coatings that reduce power consumption in LCD’s and reduce heating and cooling costs in buildings when applied to architectural glass • Others to be announced • Eastman Chemical • Genencor -- life sciences company developing industrial enzymes and protein-driven solutions • Biofuels • Biomimetic approaches to energy applications • Biophotonics • Eastman Coal Gasification Services -- New business (joint effort with Chevron Texaco) translating Eastman’s best in class technology to the power and manufacturing sectors

9. For More Information… Joel Serface Eastman Ventures jserface@eastman.com