Kraton Corporation

Investor Presentation

December 2019
 Disclaimers
Forward Looking Statements

Some of the statements and information in this presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This presentation includes forward-looking statements that
reflect our plans, beliefs, expectations, and current views with respect to, among other things, future events and financial performance. Forward-looking statements are often identified by words such as “outlook,” “believes,” “estimates,”
“expects,” “projects,” “may,” “intends,” “plans”, “on track” “on trend”, or “anticipates,” or by discussions of strategy, plans or intentions, including our expectations regarding all matters described on the slides titled “2019 Modeling
Assumptions” and “2019 Outlook”, or the sections titled “Plan for 2019 and Beyond”; as well as our expectations for targeted debt reduction, 2019 Adjusted EBITDA, growth expectations, capacity additions, operational reliability, our
share repurchase program and the actions pursuant to, and results from our strategic plan, including but not limited to a potential sale of our Cariflex business.

All forward-looking statements in this presentation are made based on management's current expectations and estimates, which involve known and unknown risks, uncertainties, and other important factors that could cause actual
results to differ materially from those expressed in forward-looking statements. These risks and uncertainties are more fully described in our latest Annual Report on Form 10-K, including but not limited to “Part I, Item 1A. Risk Factors”
and “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” therein, and in our other filings with the Securities and Exchange Commission, and include, but are not limited to, risks related
to: Kraton's ability to repay its indebtedness; Kraton's reliance on third parties for the provision of significant operating and other services; conditions in the global economy and capital markets; fluctuations in raw material costs;
limitations in the availability of raw materials; competition in Kraton's end-use markets; natural disasters and weather conditions and other factors of which we are currently unaware or deem immaterial. Readers are cautioned not to
place undue reliance on our forward-looking statements. Forward-looking statements speak only as of the date they are made, and we assume no obligation to update such information in light of new information or future events.

GAAP Disclaimer

This presentation includes the use of non-GAAP financial measures, as defined below. Tables included in this presentation reconcile each of these non-GAAP financial measures with the most directly comparable GAAP financial measure.
For additional information on the impact of the spread between the FIFO basis of accounting and estimated current replacement cost (“ECRC”), see our Annual Report on Form 10-K for the fiscal year ended December 31, 2018.

We consider these non-GAAP financial measures to be important supplemental measures in the evaluation of our absolute and relative performance. However, we caution that these non-GAAP financial measures have limitations as
analytical tools and may vary substantially from other measures of our performance. You should not consider them in isolation, or as a substitute for analysis of our results under GAAP in the United States.

EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin: For our consolidated results, EBITDA represents net income (loss) before interest, taxes, depreciation and amortization. For each reporting segment, EBITDA represents operating
income before depreciation and amortization, disposition and exit of business activities and earnings of unconsolidated joint ventures. Among other limitations, EBITDA does not: reflect the significant interest expense on our debt or
reflect the significant depreciation and amortization expense associated with our long-lived assets; and EBITDA included herein should not be used for purposes of assessing compliance or non-compliance with financial covenants under
our debt agreements since it calculation differs in such agreements. Other companies in our industry may calculate EBITDA differently than we do, limiting its usefulness as a comparative measure. As an analytical tool, Adjusted EBITDA is
subject to all the limitations applicable to EBITDA. We prepare Adjusted EBITDA by eliminating from EBITDA the impact of a number of items we do not consider indicative of our on-going performance but you should be aware that in the
future we may incur expenses similar to the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. In
addition, due to volatility in raw material prices, Adjusted EBITDA may, and often does, vary substantially from EBITDA and other performance measures, including net income calculated in accordance with U.S. GAAP. We define Adjusted
EBITDA Margin as Adjusted EBITDA as a percentage of revenue (for each reporting segment or on a consolidated bases, as applicable).

Adjusted Gross Profit and Adjusted Gross Profit Per Ton: We define Adjusted Gross Profit Per Ton as Adjusted Gross Profit divided by total sales volume (for each reporting segment or on a consolidated basis, as applicable). We define
Adjusted Gross Profit as gross profit excluding certain charges and expenses. Adjusted Gross Profit is limited because it often varies substantially from gross profit calculated in accordance with U.S. GAAP due to volatility in raw material
prices. Certain amounts reported in the prior periods have been reclassified to conform to the current reporting presentation.

Adjusted Diluted Earnings Per Share: Adjusted Diluted Earnings Per Share is Diluted Earnings (Loss) Per Share excluding the impact of a number of non-recurring items we do not consider indicative of our on-going performance.

Net Debt and Consolidated Net Debt: Net debt for Kraton is total debt (excluding debt of KFPC due to its own capital structure) less cash and cash equivalents. Consolidated net debt is Kraton net debt plus debt of Kraton Formosa
Polymers (KFPC) joint venture less KFPC’s cash and cash equivalents. Management believes that net debt is useful to investors in determining our leverage since we could choose to use cash and cash equivalents to satisfy our debt
obligations. Consolidated Net Debt, as adjusted for foreign exchange impact accounts for the FX effect on the Euro Tranche of our Term Loan.

Consolidated Net Debt Leverage Ratio: The consolidated net debt leverage ratio is defined as consolidated net debt as of the balance sheet date divided by Adjusted EBITDA for the twelve months then ended. Our use of this term may
vary from the use of similarly-titled measures by others in our industry due to the potential inconsistencies in the method of calculation and differences due to items subject to interpretation.

Kraton Overview 2
Kraton at a Glance
 Kraton – A Part of Your Daily Life

Fiber Optic Cables

Our innovations
improve the quality of Roads
countless everyday Kraton innovations allow for the
items that enhance development of highly modified
asphalt designed to withstand
your way of life. extreme hot or cold weather as well
as high traffic.
A longer lasting road and shorter
reconstruction time allow for a safer
driving experience while reducing
carbon footprint.
In a constantly connected world, we
rely on fiber optic cables to keep our
cellphone data and internet lines
running.
Kraton polymers protect the cable’s
fiber by reducing the likelihood of
water penetration, allowing for fast and
continuous contact with everyone
around you.

Baby Diapers
Our innovations provide
the excellent recovery to
withstand repeated pull
up-and-down cycles along
with stretch, fit and
breathability so young
ones can continue
to be on the move.
Wood Coatings
A protective layer of alkyd-
based coating or varnish will
protect your wooden floors
and stairs while keeping
them looking new.

Kraton Overview 4
 Our Products
Our SBC polymers are a class of
thermoplastic elastomers, which is
a plastic material that behaves like
rubber, delivering both strength
and elasticity.
Our biobased pine chemistry enables
numerous industries to replace non-
renewable resources with high-
performance, sustainable
alternatives.
Kraton Overview 5
Kraton’s History - 50+ Years of Innovation and Growth

Kraton Overview 6
 Kraton At a Glance

Segment Highlights
Revenue
Polymer Segment Chemical Segment
$2.0 Billion $1.2 Billion(2) $790 Million(2)
Cariflex (15%) Adhesives (36%)
▪ Surgical gloves & condoms ▪ Tapes & labels
▪ Medical Applications ▪ Assembly
▪ Coatings ▪ Packaging
▪ Specialized footwear ▪ Pavement marking

Adjusted EBITDA Specialty Polymers (33%)

▪ Consumer products
Performance Chemicals (58%)
▪ Coatings
(1) Margin ▪
▪
Wire & cable insulation
Diapers & personal care products
▪
▪
Fuel additives
Metalworking fluids & lubricants
▪ Lubricant additives ▪ Oilfield chemicals
▪ Medical applications ▪ Mining
▪ Paper sizing & spot markets
Performance Products (52%)
18.8% ▪
▪
Paving & roofing
Packaging & Industrial adhesives
Tires (6%)
▪ High performance tires
▪ Printing plates ▪ Winter tires
▪ Personal care ▪ All-season tires

(1) See our earnings releases, available under the Investor Relations tab of our website at www.kraton.com, for reconciliations of GAAP financial measures to non-GAAP financial measures.
(2) 2018 Revenue

Kraton Overview 7
Kraton’s Strategic Focus

▪ Targeted Innovation
Expand ▪ Continued Portfolio Shift
Specialty ▪ Commercialization of New
Portfolio Products

▪ Focus on cash ▪ Geographic and End-

generation and debt
Capital Organic market Expansion
reduction Discipline Growth
▪ Application
▪ Maintain Prudent Development
Capital Structure ▪ Leverage Capacity
Expansions

▪ Cost Competitiveness
▪ Capability & Process
▪ Disciplined approach
Improvement
▪ Total Quality
Operational Portfolio ▪ Best owner mentality
Excellence Management
▪ Bench Strength
▪ Work safely

Kraton CorporationKraton Overview

| December 2019 8
Kraton’s Global Footprint

Niort, France Berre, France Sandarne, Sweden Oulu, Finland

Manufacturing Facility Manufacturing Facility Manufacturing Facility Manufacturing Facility

Belpre, OH
Manufacturing Facility Wesseling, Germany
Manufacturing Facility

Dover, OH
Manufacturing Facility
Gersthofen, Germany
Manufacturing Facility
Savannah, GA
Manufacturing Facility
“BLS” acidulation capabilities

Pensacola, FL
Manufacturing Facility Kashima, Japan
JV Manufacturing Facility

Panama City, FL
Manufacturing Facility
“BLS” acidulation capabilities Mailiao, Taiwan
KFPC JV Manufacturing Facility

Kraton refineries
located in close
proximity to some of
the world’s largest
kraft pulp supplies

Paulinia, Brazil
Manufacturing Facility

Kraton Overview 9
Kraton’s Innovation Focus
Best-in-class positions across markets, supported by
focus on innovation
 Best-in-class margins across our segments
• Polymer margins >$1,000 per ton
• Chemicals margins of 15-20%
 Our innovation process is driven by inside-out
and outside-in approaches
• Develop breakthrough technologies
• Joint development programs
• Mega trends focus
 $40+ million annual R&D investment
 Global R&D footprint
• Houston, Savannah, Amsterdam, Shanghai
 210 R&D scientists, engineers and staff members
worldwide
 Approximately 1,400 patents underpinning robust
proprietary technology in specialty chemical
portfolio

Kraton Overview 11
 Polymer Segment -Target Growth Markets

Protect and Promote Growth- Satisfy Unmet Needs

Oil Gels IV Bags, Tubing Protective Films Oilfield Chemicals Soft Skins Adhesives

ADDRESSABLE MARKET
▪ GM-PATAC ▪ Innovation in stable/
▪ Fiber Optic Cable ▪ Defining ▪ Large market ▪ New synthetic
NextGen program on 34%light color rosin
share in high peel suspension
track for launch esters to meet future
▪ Post-tensioning polymer for IV segment additives
market
gel opportunity films to manage application
▪ Additional IMSS requirements: Best in
being validated competitive ▪ Polymer solution
programs Class Biobased Rosin
in various regions market delivers unmet 24%
Ester
market needs vs
▪ Health & Beauty acrylics & other ▪ 2nd Generation
IMSS technology ▪ Biobased
Gels: Global competitive HSBC
improvements certification provides
strategy in polymers
transparency and
development for 42%credibility to our
market ▪ New polymer
customers
penetration development for
medium peel PF
▪ Kraton DX0222 for
underway
Reactive, Higher
Temperature
Resistance Adhesives
Applications

12

Kraton Overview 12
 Chemical Segment - Target Growth Markets

Pushing the limits of where our established Chemical Products can be taken

Adhesives Roadmarking Tires Dispersions Coatings

ADDRESSABLE MARKET
▪ Kraton with leading ▪ Market with ▪ Market for water- ▪ Coatings markets
▪ Focus on Tread
position for with
attractive growth Enhancement borne tackifier 34% increasing
renewable bio-based rates dispersions continues demand for
Additives (TEA)
Tackifiers to grow sustainable products
▪ Established and ▪ Major drivers: ▪ Kraton with
continuously leading position in ▪ Asia Pacific market ▪ Our Pine based Fatty
Safety, self-driving 24% combine
growing market TEA market with with highest growth Acids
vehicles, longevity
attractive growth rates excellent
▪ Kraton most of Roadmarking
rates performance
recently introduced attributes & superior
next generation of ▪ Kraton pre-launched ▪ Kraton in final phase sustainability
▪ Kraton most
Rosin Esters a unique to launch our first 42%
features
recently launched
Roadmarking Dispersions
▪ These products our new
product combining manufacturing ▪ New TOFA grades
combine proven SYLVATRAXX 8000
our Polymer and facility in Asia with superior colour
advantages of Rosin series
Esters with superior Chemical in customer tests
color technologies

13

Kraton Overview 13
Structural Trends in Asia Driving Future Demand for HSBC and
USBC

▪ New roads & highways across Asia, China Belt & Road
Infrastructure SBS Paving
initiative
Spending Grades
▪ India and SEA countries moving towards PMB

1
Automotive ▪ Continued growth or regional automotive market IMSS, LMW
Market ▪ New design of EV cars provides opportunities for SEBS Grades
2
Global
▪ Increased demand for higher quality food packaging
HSBC&USBC 3
Increase of
▪ Increase in medical & FDA standards requiring high
SBS & LMW
Living Standard Grades
Demand purity products

Drivers 4 SEPS, new

▪ Continued investment in optical fiber networks
5G Networks ▪ Increased demand for advanced printing plates
CCL
Technology
5
▪ Stringent solvent emissions standards driving hot melt
Pollution LMW Grades
adhesives
Control ▪ Increased plastic recycling targets

14

Kraton Overview 14
Polymer Segment
Polymer Manufacturing - Overview
#1 Monomer Preparation & Polymerization
Styrene, Butadiene and Isoprene are monomers used in the Polymers segment. These
raw materials need to be purified before going to the reactor to start the polymerization
process. Polymerization is the process of creating a long chain of monomers which stay
in a solvent phase initially. A unique feature of Kraton polymers is their block structure.
There is a special category of Kraton polymer that is hydrogenated (Kraton G) and
functionalized (Kraton FG) – enabling enhanced characteristics in the final product.

#2 Polymer Recovery from Solvent

The solvent in which the polymer is dissolved is removed subsequently. By identifying
and mitigating loss spots, solvent recovery is optimized. This recovered solvent is
purified and then recovered back to the polymerization reactor. Process optimizations
that reduce the amount of energy required in the process reduces natural gas or oil
consumption.

#3 Drying & Final Packaging

New technologies can help prevent product losses over the manufacturing process.
Polymers can have different shapes and sizes, depending on the grade. The final step of
the process is the removal of water, after which packaging takes place and products are
prepared for shipping.

Kraton Overview 16
 Polymer Segment Overview

 Kraton invented Styrenic Block Copolymers (SBCs), which are highly-engineered polymers used to impart specific properties to a wide
variety of end use products

 Kraton remains a leading global producer of SBCs, and within the Polymer segment, produces three primary product families
 Unhydrogenated SBCs
 Hydrogenated SBCs
 CariflexTM isoprene rubber and isoprene rubber latex

 Strategically focused on enhancing portfolio profitability through application of R&D and portfolio shift to higher-value products and
execution of cost-reset initiatives, to deliver $70 million of cost reductions

Revenue breakdown (2018) Historical Adjusted EBITDA(1) performance

Revenue by Product Group Revenue by Geography

$ in millions 19% 18%
17%
$40 0 20%

$35 0
16% 18%

16%

12%
$30 0

Cariflex 14%

15% $25 0

Specialty Asia Pacific

12%

Polymers 28%
Americas $223
$20 0 10%

33%
40%
$215
$183
8%

$15 0

$167
$147
6%

$10 0

Performance 4%

Products EMEA $50

32%
2%

52%
$- 0%

2014 2015 2016 2017 2018

Adj. EBITDA Adj. EBITDA Margin

(1) See our earnings releases, available under the Investor Relations tab of our website at www.kraton.com, for reconciliations of GAAP financial measures to non-GAAP financial measures.

Kraton Overview 17
Polymer Segment - Overview

End Use
Monomers Products Business
Applications

Polymer modified asphalt,

Unhydrogenated SBC’s Performance Products tapes, labels non-woven
Butadiene Isoprene Styrene
(SBS, SIS, SIBS) (USBC’s) adhesives and industrial
adhesives

Soft Skin, Personal

Hydrogenated SBC’s Care, IV bags, Medical
Specialty Polymers
(SEBS, SEPS) Tubing,
Butadiene Isoprene Styrene (HSBC’s) Lubricant Additives

Isoprene rubber (IR) Surgical gloves, Condoms

and isoprene rubber CariflexTM Medical stoppers,
Isoprene
latex (IRL) Cold seal adhesives

Kraton Overview 18
Chemical Segment
The Process from Pine to Product

#1 Tall Oil
Black liquor soap - a sidestream of the kraft pulp process - is converted to
crude tall oil. We capture the valuable substances contained in tall oil
and turn them into specialty chemicals in our biorefineries.

#2 Processing
The tall oil is pumped into our bio-refinery. Here it is distilled to extract
valuable materials. We produce tall oil fatty acids, tall oil rosin, distilled
tall oil and tall oil pitch. We call these fractions.

#3 Product Development
The fractions are refined and upgraded into a wide range of biobased
specialty chemicals. These are sold to customers who seek superior
product performance. By replacing fossil-based chemicals, customers also
achieve their sustainability goals. Our biobased products enable
customers to improve product performance, reduce GHG emissions and
enable the reuse of materials.

Kraton Overview 20
 Chemical Segment - Overview
Through its Chemical segment, Kraton refines and further upgrades two primary feedstocks, Crude Tall Oil (“CTO”) and Crude Sulfate
Turpentine (“CST”), into specialty chemicals. CTO and CST are wood-pulping co-products and as such, the Chemical segment’s
product offering is based upon renewable resources

 Kraton offers high value-added products in three target markets - Adhesives, Performance Chemicals and Tires - that offer strong
potential for growth

 Kraton has an advantageous feedstock position via a long-term supply agreement with International Paper

 Kraton’s chemical business has a stable and diverse customer base with long-standing relationships in a broad array of end
markets

Revenue breakdown (2018) Historical Adjusted EBITDA(1) performance

Revenue by Product Group Revenue by Geography $40 0 30%

$ in millions
$35 0

Tires
23% 24%
6% $30 0 25%

$25 0
20% 20% 21%
Asia Pacific
15% $20 0 20%

Adhesives $192 $179 $171

$15 0

Americas
36% $151 $163
Performance 46% $10 0 15%

EMEA
Chemials $50

58%
39%
$- 10%

2014 2015 2016 2017 2018

Adj. EBITDA Adj. EBITDA Margin

(1) See our earnings releases, available under the Investor Relations tab of our website at www.kraton.com, for reconciliations of GAAP financial measures to non-GAAP financial measures.

Kraton Overview 21
Chemical Segment - Overview

Raw Specialty End Use

Fractions
Materials Chemicals Applications

Tall Oil Fatty Dimer Acids

Acid (“TOFA”) Polyamide Resins Adhesives

Crude Tall Oil

Distilled Rosin Resins Adhesives
(“CTO”)
Tall Oil (“DTO”) Dispersions
Tires
Tires
Crude Sulfate Tall Oil Upgraded Rosins Performance Chemicals
Turpentine Rosin (“TOR”) Insoluble Maleics
(“CST”)

Pitch Terpene Resins Performance Chemicals

AMS Resins

Raw materials are a renewable resource,

derived from the Kraft pulping process

Kraton Overview 22
Sustainability at Kraton
How We Create Value to Society

Kraton Overview 24
Broad Sustainability Focus

Kraton Overview 25
Chemical Segment
Sustainable Bio-based Solutions

▪ Our biobased products provide renewable and

sustainable solutions
▪ Sourced from responsibly managed forests
▪ Do not compete with land for food crops
▪ Product certification provides transparency and
credibility
▪ Kraton has certified 31 product families that cover
more than 100 products
▪ Our biobased products create value in many markets,
such as adhesives, paints, books, tapes, fragrances,
roofing materials, pavements, road markings, car tires,
and fuel additives

Kraton Overview 26
Polymer Segment

Universal solution for post consumer recycling and

industrial waste streams

Features and Benefits:

▪ Compatibilizer for PP, PE and Polar contaminants
▪ Increases recycled content
▪ Superior impact strength
▪ Recyclable formulation
▪ Cost-effective solution

Proven performance in multiple

commercial applications:
▪ Consumer and Industrial Packaging
▪ Reusable bags
▪ Luggage

Kraton Overview 27
Financial Highlights
 Third Quarter 2019 - Consolidated Results

Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 Change 2019 2018 Change
($ In millions, except per share amounts)
Revenue $ 444.2 $ 523.1 $ (78.9) $ 1,395.9 $ 1,563.9 $ (168.0)
Consolidated net income $ 20.9 $ 43.3 $ (22.4) $ 77.9 $ 51.2 $ 26.7
Diluted earnings (loss) per share $ 0.58 $ 1.31 $ (0.73) $ 2.26 $ 1.53 $ 0.73
Operating income $ 38.1 $ 72.4 (34.3) $ 129.4 $ 217.3 $ (87.9)
Adjusted EBITDA(1) $ 80.1 $ 98.7 (18.6) $ 271.5 $ 292.9 $ (21.4)
Adjusted EBITDA margin(2)(3) 18.0% 18.9% (90 bps) 19.5% 18.7% 80 bps
Adjusted diluted earnings per share(1) $ 0.52 $ 1.02 $ (0.50) $ 2.99 $ 2.49 $ 0.50
Note: May not foot due to rounding.

$217.3 $271.5 $292.9

$129.4

$72.4 $98.7
$80.1
$38.1

(1) See non-GAAP reconciliations included in the accompanying financial tables for the reconciliation of each non-GAAP measure to its most directly comparable GAAP measure.
(2) Defined as Adjusted EBITDA as a percentage of revenue.
(3) Accounting for lost sales associated with Hurricane Michael, Adjusted EBITDA margin would have been 19.3% for the nine months ended September 30, 2019.

Kraton Overview 29
Third Quarter 2019 - Polymer Segment Results
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 Change 2019 2018 Change
($ In millions)
Volume (kT) 75.8 84.2 (8.4) 229.8 249.5 (19.7)
Revenue $ 261.6 $ 321.0 $ (59.4) $ 820.5 $ 948.2 $ (127.7)
Operating income $ 18.3 $ 44.9 $ (26.6) $ 62.5 $ 137.9 $ (75.4)
Adjusted EBITDA(1) $ 50.3 $ 57.0 $ (6.7) $ 158.6 $ 170.5 $ (11.8)
Adjusted EBITDA margin(2) 19.2% 17.8% 140 bps 19.3% 18.0% 130 bps
Note: May not foot due to rounding.

Q3'19 vs. Q3'18 YTD'19 vs. YTD'18

▪ Adjusted EBITDA(1) down $6.7 million or 11.8% vs. Q3'18 ▪ Adjusted EBITDA(1) down $11.8 million or 6.9% vs. YTD'18

▪ Sales volume declined 10.0% vs. Q3'18
▪ Cariflex volume up 18.9% on higher latex sales into
surgical glove applications
▪ Specialty Polymer sales volume down 18.9% on lower
sales into lubricant additive applications and weaker
demand in Asia and Europe, partially offset by innovation-
led volume in N.A.
▪ Performance Products sales volume down 9.8% reflecting
lower SBS sales into paving & roofing applications and
lower SIS sales into adhesive applications
▪ Sales volume declined 7.9% vs. YTD'18
▪ Cariflex volume up 11.4% on higher latex sales into
surgical glove applications
▪ Specialty Polymer sales volume down 12.1% reflecting
lower sales in to lubricant additive applications and
weaker demand in Asia and Europe, partially offset by
innovation-led volume in N.A.
▪ Performance Products sales volume down 8.3% on lower
sales of SBS into paving & roofing applications and lower
sales of SIS into adhesive applications

▪ Gross Profit of $58.5 million and Adjusted Gross Profit(1) of $947 ▪ Gross Profit of $191.2 million and Adjusted Gross Profit(1) of
per ton in Q3'19, compared to $981 per ton in Q3'18 $1,013 per ton in YTD'19, compared to $1,019 per ton in YTD'18

(1) See non-GAAP reconciliations included in the accompanying financial tables for the reconciliation of each non-GAAP measure to its most directly comparable GAAP measure.
(2) Defined as Adjusted EBITDA as a percentage of revenue.

Kraton Overview 30
Third Quarter 2019 - Chemical Segment Results

Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 Change 2019 2018 Change
($ In millions)
Volume (kT) 93.1 105.9 (12.8) 300.6 332.7 (32.1)
Revenue $ 182.6 $ 202.1 $ (19.5) $ 575.4 $ 615.7 $ (40.3)
Operating income $ 19.8 $ 27.5 $ (7.7) $ 66.9 $ 79.4 $ (12.5)
Adjusted EBITDA(1) $ 29.8 $ 41.6 $ (11.9) $ 112.9 $ 122.4 $ (9.5)
Adjusted EBITDA margin(2)(3) 16.3% 20.6% (430 bps) 19.6% 19.9% (30 bps)
Note: May not foot due to rounding.

Q3'19 vs. Q318 YTD'19 vs. YTD'18

▪ Adjusted EBITDA(1) down $11.9 million or 28.6% compared to
Q3'18
▪ Sales volume decreased 12.8 kilotons or 12.1% vs. Q3'18
▪ Performance Chemicals volume down 15.0% on lower
TOR demand and TOFA upgrades into oilfield and mining
applications
▪ Adhesives volume down 7.5% on lower demand for rosin
upgrades into adhesive and roadmarking applications
▪ Tires volume up 2.4%
▪ Adjusted EBITDA margin(2) of 16.3% vs. 20.6% in Q3'18
▪ Adjusted EBITDA(1) down $9.5 million or 7.8% vs. YTD'18
▪ Sales volume decreased 32.1 kilotons or 9.6% vs. YTD'18
▪ Performance Chemicals volume down 12.9%, on lower
TOR demand, lower sales of TOFA upgrades and lower
sales of raw materials
▪ Adhesives volume down 3.7% on lower sales of rosin
upgrades
▪ Tires volume up 2.2%
▪ Adjusted EBITDA margin(2)(3) of 19.6% vs. 19.9% for YTD'18

(1) See non-GAAP reconciliations included in the accompanying financial tables for the reconciliation of each non-GAAP measure to its most directly comparable GAAP measure.
(2) Defined as Adjusted EBITDA as a percentage of revenue.
(3) Accounting for lost sales associated with Hurricane Michael, Adjusted EBITDA margin would have been 19.3% for the nine months ended September 30, 2019.

Kraton Overview 31
Consolidated Net Debt
September 30, 2019 June 30, 2019 December 31, 2018
(In millions)
Kraton debt $ 1,401.0 $ 1,456.6 $ 1,441.6
KFPC(1)(2) loans 104.3 109.9 125.5
Consolidated debt 1,505.4 1,566.6 1,567.1

Kraton cash 77.0 58.7 79.3

KFPC(1) cash 6.2 5.2 6.6
Consolidated cash 83.3 63.9 85.9

Consolidated net debt $ 1,422.1 $ 1,502.7 $ 1,481.2

Effect of foreign currency on consolidated net debt 32.3 3.8

Consolidated net debt excluding effect of foreign currency $ 1,454.4 $ 1,506.5
Effect of share buyback program (10.0) (5.0)
Consolidated net debt excluding effect of foreign currency and share $ 1,444.4 $ 1,501.5
buyback program
Note: May not foot due to rounding.

(1) This amount includes all of the indebtedness of our Kraton Formosa Polymers Corporation (KFPC) joint venture, located in Mailiao, Taiwan, which we own a 50% stake in and consolidate
within our financial statements.
(2) KFPC executed revolving credit facilities to provide funding for working capital requirements and/or general corporate purposes. These are in addition to the 5.5 billion NTD KFPC Loan
Agreement.

Kraton Overview 32
Appendix
Pine Chemicals - Overview

Raw Materials Fractions Major Upgrades / Derivatives Markets

TOFA Polyamide
Dimer Acids Adhesives
Resins
▪ Packaging
▪ Tapes
Lighter ▪ Labels
▪ Assembly
▪ Pavement Marking
DTO ▪ Paving
▪ Roofing
Refining Rosin Resins

Dispersions
Crude Tall Oil Tires
Upgraded ▪ Winter & All-
(“CTO”) TOR
Rosins Season
Pulp Mills

High Performance
Insoluble
Tires
Maleics
Heavier
Crude Sulfate Performance
Terpentine Chemicals
Pitch
(“CST”) ▪ Fuel Additives
▪ Oilfield Chemicals
Terpene ▪ Mining
Refining ▪ Coatings
Fractions
▪ Metalworking
Terpene Resins Fluids &
Lubricants
▪ Inks
AMS AMS Resins ▪ Flavors &
Fragrances
34
Adhesives Tires Performance Chemicals

Kraton Overview 34
Polymer – Revenue by Geography and End Use
TTM September 30, 2019

Segment Revenue by Geography Segment Revenue by End Use

Kraton Overview 35
 Polymer – Revenue by Geography and Product Group TTM
September 30, 2019
CARIFLEX SPECIALTY POLYMERS PERFORMANCE PRODUCTS
Revenue by Geography
Revenue by Product Group

Kraton Overview 36
Chemical – Revenue by Geography and Product Group TTM
September 30, 2019
ADHESIVES PERFORMANCE CHEMICALS TIRES
35% of TTM Revenue 59% of TTM Revenue 6% of TTM Revenue

Chemical Segment Revenue

Kraton Overview 37
Polymer Segment Reconciliation of Gross Profit to Adjusted
Gross Profit

Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
(In thousands)
Gross profit $ 58,478 $ 90,205 $ 191,230 $ 281,482

Add (deduct):
KFPC startup costs (a) 3,019 — 3,019 —
Non-cash compensation expense 159 149 489 457
Spread between FIFO and ECRC 10,103 (7,771) 38,067 (27,711)
Adjusted gross profit (non-GAAP) $ 71,759 $ 82,583 $ 232,805 $ 254,228

Sales volume (kilotons) 75.8 84.2 229.8 249.5

Adjusted gross profit per ton $ 947 $ 981 $ 1,013 $ 1,019

(a) Startup costs related to the joint venture company, KFPC.

Kraton Overview 38
 Reconciliation of Net Income to Operating Income to Non-
GAAP Financial Measures
Three Months Ended September 30, 2019 Three Months Ended September 30, 2018
Polymer Chemical Total Polymer Chemical Total
(In thousands)
Net income (loss) attributable to Kraton $ 18,693 $ 42,349
Net income attributable to noncontrolling interest 2,222 928
Consolidated net income (loss) 20,915 43,277
Add (deduct):
Income tax benefit 2,311 8,334
Interest expense, net 19,214 20,143
Earnings of unconsolidated joint venture (102) (100)
Other income (expense) (4,235) 740
Operating income $ 18,269 $ 19,834 38,103 $ 44,899 $ 27,495 72,394
Add (deduct):
Depreciation and amortization 14,982 19,822 34,804 17,554 17,563 35,117
Other income (expense) (502) 4,737 4,235 (958) 218 (740)
Earnings of unconsolidated joint venture 102 — 102 100 — 100
EBITDA (a) 32,851 44,393 77,244 61,595 45,276 106,871
Add (deduct):
Transaction, acquisition related costs, restructuring, and
other costs (b) 1,672 244 1,916 689 (177) 512
Hurricane related costs (c) — 2,220 2,220 — — —
Hurricane reimbursements (d) — (13,841) (13,841) — — —
KFPC startup costs (e) 3,019 — 3,019 — — —
Sale of emissions credits (f) — (4,601) (4,601) — — —
Non-cash compensation expense 2,659 — 2,659 2,495 — 2,495
Spread between FIFO and ECRC 10,103 1,337 11,440 (7,771) (3,456) (11,227)
Adjusted EBITDA $ 50,304 $ 29,752 $ 80,056 $ 57,008 $ 41,643 $ 98,651
(a) Included in EBITDA is a $14.3 million gain on insurance, a reimbursement for a portion of the direct costs we have incurred to date related to Hurricane Michael.
(b) Charges related to the evaluation of acquisition transactions, severance expenses, and other restructuring related charges.
(c) Incremental costs related to Hurricane Michael, which are recorded in cost of goods sold. As we finalized our claim for reimbursement of incremental costs incurred, we have identified an additional $1.4 million of costs incurred
during the nine months ended September 30, 2019. Additionally, we incurred direct costs due to the impacts of Hurricane Dorian of $0.8 million which are recorded in cost of goods sold. The Hurricane Dorian direct costs are
limited to the three months ended September 30, 2019 and will not continue into the fourth quarter of 2019.
(d) Reimbursement of incremental costs related to Hurricane Michael, which is recorded in gain on insurance proceeds.
(e) Startup costs related to the joint venture company, KFPC.
(f) We recorded a gain of $4.6 million in other income (expense) related to the sale of emissions credits accumulated by our Swedish Chemical legal entity.

Kraton Overview 39
 Reconciliation of Net Income to Operating Income to Non-
GAAP Financial Measures
Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018
Polymer Chemical Total Polymer Chemical Total
(In thousands)
Net income attributable to Kraton $ 72,569 $ 49,491
Net income attributable to noncontrolling interest 5,356 1,743
Consolidated net income 77,925 51,234
Add (deduct):
Income tax (benefit) expense (1,881) 8,743
Interest expense, net 57,494 74,835
Earnings of unconsolidated joint venture (363) (357)
(Gain) loss on extinguishment of debt (210) 79,921
Other income (expense) (3,559) 2,960
Operating income $ 62,498 $ 66,908 129,406 $ 137,930 $ 79,406 217,336
Add (deduct):
Depreciation and amortization 43,296 54,934 98,230 52,914 52,719 105,633
Other income (expense) (1,547) 5,106 3,559 (3,600) 640 (2,960)
Gain (loss) on extinguishment of debt 210 — 210 (79,921) — (79,921)
Earnings of unconsolidated joint venture 363 — 363 357 — 357
EBITDA (a) 104,820 126,948 231,768 107,680 132,765 240,445
Add (deduct):
Transaction, acquisition related costs, restructuring, and other costs (b) 4,781 808 5,589 2,062 (963) 1,099
(Gain) loss on extinguishment of debt (210) — (210) 79,921 — 79,921
Hurricane related costs (c) — 15,025 15,025 — — —
Hurricane reimbursements (d) — (26,561) (26,561) — — —
KFPC startup costs (e) 3,019 — 3,019 897 — 897
Sale of emissions credits (f) — (4,601) (4,601) — — —
Non-cash compensation expense 8,158 — 8,158 7,620 — 7,620
Spread between FIFO and ECRC 38,067 1,294 39,361 (27,711) (9,371) (37,082)
Adjusted EBITDA $ 158,635 $ 112,913 $ 271,548 $ 170,469 $ 122,431 $ 292,900
(a) Included in EBITDA is a $32.9 million gain on insurance, fully offsetting the lost margin in the first quarter of 2019, and reimbursement for a portion of the direct costs we have incurred to date related to Hurricane Michael.
(b) Charges related to the evaluation of acquisition transactions, severance expenses, and other restructuring related charges.
(c) Incremental costs related to Hurricane Michael, which are recorded in cost of goods sold. As we finalized our claim for reimbursement of incremental costs incurred, we have identified an additional $14.2 million of costs incurred
during the nine months ended September 30, 2019. Additionally, we incurred direct costs due to the impacts of Hurricane Dorian of $0.8 million which are recorded in cost of goods sold. The Hurricane Dorian direct costs are
limited to the three months ended September 30, 2019 and will not continue into the fourth quarter of 2019.
(d) Reimbursement of incremental costs related to Hurricane Michael, which is recorded in gain on insurance proceeds.
(e) Startup costs related to the joint venture company, KFPC.
(f) We recorded a gain of $4.6 million in other income (expense) related to the sale of emissions credits accumulated by our Swedish Chemical legal entity.

Kraton Overview 40
 Reconciliation of Diluted EPS to Adjusted Diluted EPS

Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
Diluted Earnings Per Share $ 0.58 $ 1.31 $ 2.26 $ 1.53
Transaction, acquisition related costs, restructuring, and other costs (a) 0.04 0.02 0.13 0.03
(Gain) loss on extinguishment of debt — — (0.01) 1.89
Hurricane related costs (b) 0.15 — 0.55 —
Hurricane reimbursements (c) (0.44) — (0.83) —
KFPC startup costs (d) 0.04 — 0.04 0.01
Sale of emissions credits (e) (0.14) — (0.14) —
Spread between FIFO and ECRC 0.29 (0.31) 0.99 (0.97)
Adjusted Diluted Earnings Per Share (non-GAAP) $ 0.52 $ 1.02 $ 2.99 $ 2.49

(a) Charges related to the evaluation of acquisition transactions, severance expenses, and other restructuring related charges.
(b) Incremental costs related to Hurricane Michael, which are recorded in cost of goods sold. As we finalized our claim for reimbursement of incremental costs incurred, we have identified an
additional $14.2 million of costs incurred during the nine months ended September 30, 2019. Additionally, we incurred direct costs due to the impacts of Hurricane Dorian of $0.8 million
which are recorded in cost of goods sold. The Hurricane Dorian direct costs are limited to the three months ended September 30, 2019 and will not continue into the fourth quarter of 2019.
(c) Reimbursement of incremental costs related to Hurricane Michael, which is recorded in gain on insurance proceeds.
(d) Startup costs related to the joint venture company, KFPC.
(e) We recorded a gain of $4.6 million in other income (expense) related to the sale of emissions credits accumulated by our Swedish Chemical legal entity.

Kraton Overview 41