A healthier Eastman

continuing the journey

Contents

Eastman Chemical Company Overview

Wellness History & Goals

Health Risk Assessment (HRA) Data

Programs

Path Forward

Eastman Chemical Company - overview

Global manufacturer of chemicals, plastics and fibers headquartered in Kingsport, TN

2011 sales of $7.2 billion

16 manufacturing sites in eight countries

Over 1200 products

More than 10,000 employees worldwide (~8,600 domestic)

Five U.S. sites, primarily non-union

Approximately 6,800 employees located at one site in Tennessee

Wellness history

1991: Began Eastman Health & Wellness Program

2003: Employee health identified as critical business issue

Direct health care and productivity cost the biggest issue

Established cross-functional strategic team to develop

new model

2004-05: Implemented integrated model & established

Eastman Integrated Health (EIH)

2008: Created overarching brand identity (HealthE Connections)

that incorporates everything health-related at Eastman

2009: Progress in our integrated model

Single Third Party Administrator

Dedicated team for care management

Incentive programs (HealthE Dividends)

Eastman’s integrated health goals

• Healthier and more productive

workforce

• Greater responsibility for one’s

health status

• More cost-effective purchase

of medical care

• Lower rate of increase in

overall cost of medical,

disability and related expenses

• Improved quality of health

care delivered

• Opportunity to improve health

• Opportunity to impact

Eastman’s financial

performance:

• Containing direct health

care spend

• Reducing indirect cost of

poor health (absenteeism

and productivity)

“Building a Culture of Health”

Results

At Eastman

Building a culture of health

Management

Support

Behavior Change

(Outcomes) Incentives

Opportunites

(Programming) Partner

Support

$600 lower health care

contributions for

employees and spouses

completing HRA

$600 lower health care

contributions for employees

and spouses completing HRA

and employee participating in

one health management

program

$600 lower health care

contributions for employees

completing HRA, one health

management program

2007 2008 2006 2005 2009

30%

No incentive offered

$600 lower health care

contributions for

employees completing

HRA

Incentive timeline and HRA participation

94%

2010

92%

88%

87%

$600 lower health care

contributions for

employees and spouses

completing HRA

86%

86%

$600 lower health care

contributions for

employees and spouses

completing HRA

2011

Risk Factor Risk Definition

Pri

mary

Ris

ks

(% a

t R

isk)

Cholesterol Total Cholesterol > 200mg/dl or HDL < 40mg/dl or LDL > 100

mg/dl or Triglycerides > 150mg/dl

BMI > 25.0

Blood Pressure > 140/90

Depression Little interest or pleasure in doing things AND felt down,

depressed, or hopeless

Fitness Moderate level activity < 4 days /week

Glucose > 100mg/dl

Stress Often stressed and trouble coping at times or greater

Tobacco Any tobacco use (cigarettes, pipes, cigars, snuff)

Seco

nd

ary

Ris

ks

(% a

t R

isk)

Fruits & Veg Eating less than 5 servings of fruits and vegetables a day

Seat Belt < 90% of the times

Job Satisfaction Very dissatisfied

Life Satisfaction Very dissatisfied

Alcohol Females > 7 drinks per week, Males > 14 drinks per week

Perception of Health Poor

Custom 14 risk factors

Multiple risk factor summary

4.09

4.01

3.89

3.82

3.77 3.73

3.50

3.60

3.70

3.80

3.90

4.00

4.10

4.20

Time 1 Time 2 Time 3 Time 4 Time 5 Time 6

Average Number of Risks**

* Represents each condition year (Sept. 1 – Aug 31)

**T1/T6 & T5/T6 changes were Statistically Significant using paired samples t-test

All Employees – T1/T2/T3/T4/T5/T6*

(n=5,544)

Eastman Chemical Company Custom 14 Risk Factors

Multiple risk factor summary

68

.5%

27

.3%

4.2

%

68

.8%

26

.2%

5.0

%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0 to 4 Risks 5 to 6 Risks 7+ Risks

T1-T6 Participants New Participants

Average Number of Risks:

T1-T6 Participants 3.73

New Participants 3.80

Comparison of T1-T6 Participants and New Participants

T1-T6 Participants Average Age 49 26.5% Female / 73.5% Male

New Participants Average Age 40 25.4% Female / 74.6% Male

Eastman Chemical Company Custom 14 Risk Factors

Improvement in risk factors for employee population

December 2011

0% 10% 20% 30% 40% 50% 60% 70%

Hypertension/High Blood Pressure (140+ or 90+)

Cholesterol (200+)

Diabetes Blood Glucose >140

Pre-Diabetes Blood Glucose >100

Obese (BMI 30+)

Overweight (BMI 25-29.9)

Tobacco Use

Lack of Physical Activity (<4/week)

2011 2010 2009 2008 2007 2006

Lowering Percent At

Risk Over Six Years:

Cholesterol: 31.0%

Hypertension: 30.5%

Tobacco Use: 22.9%

Diabetes: 18.5%

Pre-Diabetes: 15.6%

Lack of Phys. Act.: 12.2%

Overweight/Obese: 1.1%

Ris

k F

acto

rs

Good

December 2011

0% 10% 20% 30% 40% 50% 60% 70%

Hypertension/High Blood Pressure (140+ or 90+)

Cholesterol (200+)

Diabetes Blood Glucose >140

Pre-Diabetes Blood Glucose >100

Obese (BMI 30+)

Overweight (BMI 25-29.9)

Tobacco Use

Lack of Physical Activity (<4/week)

2011 2010 2009 2008

Risk factors for spouse population

Lowering Percent At

Risk Over Four Years:

Cholesterol: 11.2%

Hypertension: 20.8%

Tobacco Use: 12.6%

Diabetes: 0.0%

Pre-Diabetes: 10.5%

Lack of Phys. Act.: 3.7%

Overweight/Obese: -1.25%

Ris

k F

acto

rs

Good

What we offer today

Incentive programs

Maintain

Health

• HealthE Living

• BodE Mass

Chronic

Conditions

• Diabetes

• Hypertension

Life Style

Management

• Stress Less Living

• BodE Mass

• Back to Basics

Health coaching

On-site, face-to-face health coaching

Enrollment topics include BMI, blood pressure, lipids,

blood glucose, physical inactivity and tobacco

Multidisciplinary team consisting of RNs, RDs, exercise

physiology, health educators/coaches

Health coaching since 1991

Health coaching graduates 2003-11 (N= 7,312)

45.58% of graduates lost weight (average weight loss = 8.15 lbs)

Category % of High-Risk Graduates

Who Eliminated Risk

Physical activity 72.5%

Blood pressure 71.4%

Total cholesterol 70.8%

Glucose 59.4%

Triglycerides 54.2%

Weight management

Program designed to help

employees and spouses lose

weight or maintain current weight

Weight Watchers at Work

BodE Mass project comparison 2010 - 2011

Year Registered Total Weight

Lost

Average

Weight

Beginning

Average

Weight Ending

Average BMI

Beginning

Average BMI

Ending

Total Met their

Year End Goal

2010 979 2,233 lbs 190.05 lbs 187.05 29.03 28.57 199

2011 1627 5,405.8 lbs. 182.71 lbs. 178.31 lbs. 27.65 27 644

Eliminated Risk for BMI

2010 2011

5.4% 7.7%

Noteworthy (2010):

• 8.6% of those registered reduced their risk for BMI

• 23% of those registered had a beginning BMI less than 25

• 30.8 % of those registered had an ending BMI less than 25

Noteworthy (2011):

• 13.8% of those registered reduced their risk for BMI

• 28% of those registered had a beginning BMI less than 25

• 36.8% of those registered had an ending BMI less than 25

Category 2010

% That Lost Weight

2011

% That Lost Weight

2010

% That Met Goal

2011

% That Met Goal

Normal 47.1% 63.3% 90.1% 96.6%

Overweight 58.7% 78.4% 19.8% 34.7%

Obese 64.1% 75.5% 9.9% 17.6%

Total 58.1% 72.5% 32.3% 51.1%

Physical activity programs

On-site Fitness

Centers

JOBFIT

Walk This Way

Boot Camp

Triathlon

On-site Group

Fitness Programs

Physical activity programming

0

20000

40000

60000

80000

100000

120000

140000

2004 2005 2006 2007 2008 2009 2010 2011

Fitness Center Visits

0

5000

10000

15000

20000

25000

2004 2005 2006 2007 2008 2009 2010 2011

Group Fitness Visits (Instructor Led Activities)

High risk diabetes management program

Individuals choosing this program must meet the following

eligibility criteria:

Employees

Spouses covered under Eastman health insurance

Diagnosis of diabetes along with any one of the following:

Prior MI, Stroke, Heart Failure, Angina or TIA

HbA1c greater than 8

LDL greater than 130

BP greater than 140/90

Microalbuminuria or GFR under 60

At the end of the first year: Approximately 80% of those engaged had made progress in at

least one category (decrease in HbA1c or FBS, decrease in LDL or

decrease in BP)

Stress Less Living

Overview

Educate and improve quality of life

Program includes:

Pre and Post assessments

Six group classes

• Don’t Believe Everything You Think

• What Color is Your Mood Ring?

• A Change Will Do You Good

• Listen to What I Mean, Not What I Say

• Time Matters

• Shifting Gears

Individual follow-up session with life coach

Stress Less Living results - 2011

94 Participants (Kingsport and Texas)

Integrated Effort • Eastman Medical / Eastman Integrated Health

• Eastman Employee Assistance Program (EAP)

• HealthFitness

Increased awareness of EAP services

Raised awareness of individual stress levels, coping skills, and relaxation techniques

Health promotion programs

Program / Service Participation Employees & Spouses

Flu Vaccinations 2785

Health Education Seminars 859

20 Year Celebration / Employee Appreciation 811

Resolution Solutions 395

Onsite Mobile Screenings 245

HealthE Connections Center Open House 125

Health promotion satisfaction

Program Area % Positive and

Very Positive

Mobile Mammography Screening 97%

Stress Less Living 95%

Bone Density Screening 95%

Mind Your Health Seminars 94%

Diabetes Jeopardy 93%

Health Education Seminars 90%

CE&SP

HR CM&S IT

OSSD

TEPO Technology WWE&C Utilities

TX OCD TX OSD TX EM&S

12 Division Wellness Teams

• CM&S Walk Across TN

• CM&S Weight No More

• OSSD Olympiad

• CE&SP Health U

• CE&SP Jingle Bell

Challenge

• Technology Race to

Fitness

• Technology Healthy Recipe

Cookoff

• Utilities Shiftwork Pilot

Program

Three Site Wellness Steering Teams

• Tennessee

• Texas

• Pennsylvania

2011 divisional programs

Engaging in Wellness for the people they serve

Focus in 2012

Inspire families to eat

healthier and get active

Collaborate with local physician partnerships

Improve the health of Eastman’s

employees and families

The vision

Our focus

Medical

Innovation

Technology

Weight &

Physical

Activity

Employees

Families

Community

Nutrition programs implemented

Weight &

Physical

Activity

$4 Healthy Meals

$3 Healthy Vegetable Meals

Red, Yellow, Green Serving Utensils

Vending Machines – Healthy choices labeled

Catering – Healthy choices noted on website

Changing the trend

Prior to Healthy Meal Initiative the baseline healthy

entrée sales were approximately 10%

After 12 weeks of $4 Healthy Meal Initiative,

between 30-35% of meals sold are healthy options

Cafeterias have received requests for $4 Healthy

Meals for catering

Physical activity projects & programs

implemented

Weight &

Physical

Activity

Kingsport: fitness center renovations

Texas City: fitness center grand opening in July

Jefferson: fitness center under construction

New HDA programs • On-site Fitness Center/Group Fitness Usage

• Off-Site Fitness Center/Group Fitness Usage

• MISSION POSSIBLE program: • “Walk the Walk” with Senior Leaders at each

plant site

MISSION POSSIBLE

HDA Program began May 14

1836 employees/spouses registered

218 of those enrolling children

Mission #1: Begin and establish a regular exercise

program

Mission #2 Discover your potential by advancing

your current exercise program

Mission #3 Maintain your health with a long term

physical activity plan

“Families for a Healthier Eastman” team

Chosen ambassadors from communities

where our employees live

Officially started on January 30, 2012

Employees

Families

Community

Objectives: Improve the health of Eastman’s employees

and families

Inspire families to eat healthier and get active

Focus Areas: Food/Nutrition

Physical Activity

Education/Motivation

Medical/Prevention

Medical program implemented

Hypertension Program – those who choose

to participate will:

Receive free blood pressure monitors

High risk participants are eligible for

telemonitor device

Medical

Innovation

Technology

Summary

2012 focus areas

Expand Program

with Company Growth

New HRA

New Website

Individualized Coaching Triage

ROI

Fitness Center Renovations

Group Fitness Renovations

Mission Possible

(Physical Activity)

Opportunities and new challenges

"I will value my health

a"I will value my

health as I value the health of my loved

ones.“ - Dr. Pamela Peeke