Kraton Polymers 8-K Regulation FD Disclosure

Business and Financial Overview

March and April 2010

Exhibit 99.1

Disclaimers

2

Forward-Looking Statements

This

presentation

may

include

“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 characterized by the use of

words

such

as

“believes,”

“estimates,”

“expects,”

“projects,”

“may,”

“intends,”

“plans”

or

“anticipates,”

or

by

discussions

of

strategy,

plans

or

intentions.

All

forward-looking

statements

in this presentation are made based on management's current expectations and

estimates, which involve risks, uncertainties and other factors that could cause actual results to

differ materially from those expressed in forward-looking statements. Readers are cautioned

not to place undue reliance on forward-looking statements. We assume no obligation to update

such information. Further information concerning issues that could materially affect financial

performance related to forward-looking statements can be found in our periodic filings with the

Securities and Exchange Commission.

GAAP Disclaimer

This presentation includes the use of both GAAP (generally accepted accounting principles)

and non-GAAP financial measures. The non-GAAP financial measures are EBITDA and

Adjusted EBITDA. The most directly comparable GAAP financial measure is net

income/loss. A reconciliation of the non-GAAP financial measures used in this presentation

to

the

most

directly

comparable

GAAP

measure

is

included

herein.

We

consider

EBITDA

and Adjusted EBITDA important supplemental measures of our performance and believe

they are frequently used by investors and other interested parties in the evaluation of

companies in our industry. EBITDA and Adjusted EBITDA have limitations as analytical tools

and

should

not

be

considered

in

isolation

or

as

a

substitute

for

analysis

of

our

results

under

GAAP in the United States.

3

Investment Highlights

Leadership

Clear leader in the fast growing, attractive SBC market

Scale

Approximately twice the size of our largest competitor in each of our end-use

markets

The only producer with a global footprint and service capabilities

High

Barriers to

Entry

Patented technology, custom designed product, process excellence, global reach

and customer relationships create strong competitive position that cannot be

matched by existing or potential competitors

Kraton, therefore, commands price premiums in the market

Innovation

Most-productive innovator of new SBC products, often engineered to meet a specific

customer need

Earnings

Growth

Driven by cost initiatives, economic recovery, return to normal customer inventory

levels and new product introductions

Meaningful operating leverage

Experience

Strong leadership team demonstrating continuous improvement in productivity,

innovation and margin improvement even in a difficult macroeconomic environment

4

Experienced Management Team

Name

Title

Previous Experience

Years

Industry

Experience

Dan Smith

Chairman of the

Board

Lyondell

40

Kevin Fogarty

President & CEO

Koch (Invista)

18

Steve Tremblay

Chief Financial

Officer

Vertis

9

David Bradley

Chief Operating

Officer

General Electric (Lexan)

17

Lothar Freund

Research &

Technical Services

Hoechst AG (Invista)

20

5

Kraton

Overview

We design and manufacture customized

SBC neat resin and compound solutions

to meet our leading customers’

specific

innovation needs

We currently offer approximately 800

products to more than 700 customers, in

over 60 countries

We are organized around four distinct

markets, or end-uses, providing industrial,

consumer and geographical diversification

second to none

We employ approximately 800 people in

15 locations in all major regions of the

world

2009 operating revenue of $968 million

and 2009 Adjusted EBITDA of $91 million

(1)

Sales revenue excludes by-products sales

(2)

Adjusted EBITDA is GAAP EBITDA excluding sponsor fees, restructuring and related charges, non-cash expenses, and the gain on

extinguishment of debt. A reconciliation of net income or loss to EBITDA and Adjusted EBITDA is presented in the Appendix.

2009

Sales

Revenue

(1)

by

End-Use

2009

Sales

Revenue

(1)

by

Geography

North and

South

America

Europe,

Middle

East &

Africa

Asia Pacific

Paving and

Roofing

Adhesives,

Sealants and

Coatings

Footwear and

Other

Emerging

Businesses

Advanced

Materials

We are the world’s leading innovator of

Styrenic

Block Copolymers (SBCs)

6

Before Kraton

After Kraton

Kraton

Makes Products Better

Product Issue

Stretch in legs only (Spandex)

Not a fitted garment

High leakage rate

Overall improvement in stretch

(where it’s needed)

Better fit

Low leakage rate

Kraton

market share: 47%

2001 –

2007 CAGR: 11.4%

Elastic Films for Disposable Diapers

Kraton

as

% of Diaper

cost: <2%

Phthalate plasticizers are used to

make PVC soft. However, plasticizers

can leach from finished products and

create health concerns

Limited recyclability

Vinyl Chloride polymers are unsafe

when burned or incinerated improperly

Fully recyclable

Kraton

imparts softness, toughness and clarity

Plasticizers & chlorine free

Product Issue

Kraton

as an alternative for soft PVC

Kraton

as % of finished

product cost: <5%

7

SBCs

Are a Growth Industry

SBC Industry Volume (KT)

(1)

SBCs

Grow Faster Than GDP

While SBC applications grow at

GDP, the adoption of SBCs

into new

applications leads to ~2x GDP

industry growth

Low cost relative to value add /

performance

Limited substitution risk

Rising incomes in developing economies

Innovation and new SBC product

introductions

End use application growth (e.g., cell

phone covers, PVC replacement,

IV bags)

Growing demand for green alternatives to

electronics, medical and baby care markets

(1)

Excludes

footwear

segment

in

which

Kraton

does

not

actively

compete.

Source: Management Estimates

8

Clear Leader in Attractive Markets

Market position

2009

Revenue

(1)

#1

64%

Adhesives, Sealants,

and Coatings

Advanced Materials

#1

75%

Paving and Roofing

#1

74%

Emerging Businesses

#1

100%

32%

31%

26%

7%

2.6x

2.2x

1.9x

6.1x

Source:

Management  estimates

(1)

Based on 2009 sales of $920.4 million (excludes by-product sales which are reported as other revenues)

(2)

Industry

growth

from

2001-2008;

however,

IR

Latex

growth

is

Kraton

growth

from

2007-2009

(3)

Management’s estimates vs. next largest competitor based on 2008 sales

#1 Market Position and Approximately Twice the Size of Our Closest Competitors

Top 4 market

share

Kraton

market

share relative to

#2

competitor

(3)

Growth

(2)

5.2%

8.0%

7.1%

28.8%

9

Unparalleled Global Manufacturing and Service

Capability

Location

Capability

Kraton

Capacity

Houston, Texas

Global Headquarters &

Innovation Center

Not applicable

Belpre, Ohio

Manufacturing

189 kt

Wesseling,

Germany

Manufacturing

95 kt

Berre, France

Manufacturing

87 kt

Paulinia, Brazil

Manufacturing &

Innovation Center

28 kt

Kashima, Japan

Manufacturing Joint

Venture

20 kt

Amsterdam, The

Netherlands

Innovation Center

Not applicable

Mont St. Guibert,

Belgium

Technical Service

Office

Not applicable

Shanghai, China

Customer Service &

Technical Center

Not applicable

Tskuba, Japan

Innovation Center

Not applicable

High quality customer base

Majority of top customers have 15+ year

relationship

Blue chip customer base in the consumer

products, packaging, medical supplies,

construction and textile industries

Several key customer relationships are sole

source

Well diversified customer base

10

Sustainable Competitive Advantages

Over 40 years of process know-how and

expertise

Performance-critical products and manufacturing

complexity

Technical

Barriers

Globally

recognized

brand

–

KRATON

®

Industry-leading R&D infrastructure

Global low-cost manufacturing footprint

Significant regulatory hurdles / barriers to new

manufacturing sites

Stable raw material base with multiple sources

of supply and contract / relationships

Infrastructure

Barriers

Superior and

Innovative Products

+

High Customer

Switching Costs

+

Long-Term

Customers

Relationships

=

Leading

Market Position

Products designed collaboratively to meet

specific customer needs / applications

Preferred partner based on manufacturing

consistency and process know-how

Ongoing technical service offering

100% of products offered on demand

High

Value

Added

Innovation-led Top Line Growth

Case Study:  IR Latex Revenue Growth

Key Attributes

Tremendous growth

Rapidly capture share from $2.2 billion natural

rubber latex industry

Margins well in excess of rest of business

Kraton

maintains 86% market share

Challenging process technology to replicate

for competitors and new entrants

IPO proceeds will help fund IR Latex

capacity expansion

20/20 Vision by 2011

20% of revenue from innovation

20% contribution margin premium

11

US $ in millions

$15

$22

$23

$35

$61

2005

2006

2007

2008

2009

6%

11%

13%

14%

12%

20%

2005

2006

2007

2008

2009

2011

Strong Diversified Innovation Pipeline to Drive Growth

12

Slush Molding

HiMA

Protective Films

PVC Replacement

Wire & Cable

PVC Replacement

Medical Applications

13

Kraton

has Significant Growth & Profitability Opportunities

Project

Description

Estimated

Cost

Expected

Timing

Latex

Expansion

Capture additional market

demand

Up to $30 million

2011 -

2012

HSBC

Expansion

High-margin HSBC

capacity expansion

utilizing new technology

TBD

2012 +

Asia Plant /

Rationalize

Capacity

State of the Art HSBC

plant in Asia

Debottleneck existing

capacity

In Phases / TBD

2012 +

Isoprene

Rubber and

Isoprene Latex

Debottleneck

Capital advantaged latex

expansion at Paulinia

and

IR capacity replacement

$30 -

$35 million

2010 -

2011

We

Typically

Seek

Higher

Growth

Opportunities

with

Relatively

Rapid

Steady-State

Payback

$(10)

$13

$53

$35

Q1 09

Q2 09

Q3 09

Q4 09

2009 Financial Highlights

$178

$234

$270

$238

Q1 09

Q2 09

Q3 09

Q4 09

Adhesives, Sealants & Coatings,

Advanced Materials and Emerging

Businesses each posted revenue growth

in Q4 2009 versus Q4 2008

Sales Revenue

(1)

(US $ in Millions)

(1)

Excludes by-product revenue

(2)

Adjusted EBITDA  is GAAP EBITDA excluding sponsor fees, restructuring and related charges, non-cash expenses, and the

gain on extinguishment of debt. A reconciliation of net income or loss to EBITDA and Adjusted EBITDA is presented in the

Appendix

Q3 momentum continued into Q4

Q4 volume of 61kt up 16% versus Q4

2008

2009 volume of 260 kilotons versus

313 kilotons in 2008

Volume (kt)

47

71

81

61

61%

76 %

90%

Q1 09

Q2 09

Q3 09

Q4 09

116%

% of 2008

Q4 2009 adjusted EBITDA was up 21%

compared to $29 million in Q4 2008

Adjusted EBITDA margin percentage

yields 170 basis point improvement

versus Q4 2008

Adjusted EBITDA

(2)

(US $ in Millions)

14

2009 Financial Overview

(1)

Adjusted EBITDA is GAAP EBITDA excluding sponsor fees, restructuring and related charges, non-cash expenses, and the

gain on extinguishment of debt. A reconciliation of net income or loss to EBITDA and Adjusted EBITDA is presented in the

Appendix

15

US $ in thousands

2009

2008

2009

2008

Sales Volume (kt)

61

53

260

313

Total Operating Revenues

250,708

$         

231,636

$         

968,004

$         

1,226,033

$       

Cost of Goods Sold

189,840

182,665

792,472

971,283

Gross Profit

60,868

48,971

175,532

254,750

Operating expenses

Research and Development

6,098

5,920

21,212

27,049

Selling, General and Administrative

22,919

27,853

79,504

101,431

Depreciation and Amortization of Identifiable Intangibles

25,168

12,282

66,751

53,162

Gain on Extinguishment of Debt

-

-

23,831

-

Equity in Earnings of Unconsolidated Joint Venture

98

123

403

437

Interest Expense, net

9,179

8,999

33,956

36,695

Income (Loss) Before Income Taxes

(2,398)

(5,960)

(1,657)

36,850

Income Tax Expense

(882)

1,035

(1,367)

8,431

Net Income (Loss)

(1,516)

$            

(6,995)

$            

(290)

$               

28,419

$           

Earnings

(Loss)

per

Common

Share

-

Diluted

(0.07)

(0.36)

(0.01)

1.46

Adjusted EBITDA

(1)

35,043

$           

28,551

$           

91,359

$           

152,048

$         

Fourth Quarter

Full Year

Operating

Revenue

and

Adjusted

EBITDA

(1)

Walk

Fiscal Years 2008 vs. 2009

Operating Revenue FY 2008 vs. 2009

Adjusted EBITDA

(1)

FY 2008 vs. 2009

(1)

Adjusted EBITDA is GAAP EBITDA excluding sponsor fees, restructuring and related charges, non-cash expenses, and the gain on

extinguishment of debt. A reconciliation of net income or loss to EBITDA and Adjusted EBITDA is presented in the Appendix.

16

US $ in millions

Operating Revenue Q4 2008 vs. Q4 2009

17

Adjusted EBITDA

(1)

Q4 2008 vs. Q4 2009

Operating

Revenue

and

Adjusted

EBITDA

(1)

Walk

Q4 2008 vs. Q4 2009

(1)

Adjusted EBITDA is GAAP EBITDA excluding sponsor fees, restructuring and related charges, non-cash expenses, and the gain on

extinguishment of debt. A reconciliation of net income or loss to EBITDA and Adjusted EBITDA is presented in the Appendix.

US $ in millions

18

$17

$21

$17

$12

Culture of Continuous Cost Improvement

$67

2007

Belpre work process improvement

project

Offsite warehouse

Global office closures

2009

Berre fixed cost reduction

ERP project

Paulinia work process improvement

project

Global staff reduction, discretionary

spending reduction

2010

Pernis IR shutdown

2008

Pernis SIS shutdown

RTS and SG&A staff reductions

Freight forward contract

Belpre energy reduction initiatives

Annualized run-rate of cost savings

US $ in millions

Capital Structure Significantly Improved

Amend and Extend Cash Flow Revolver

Upsize to $80.00 million from $75.5 million

Two year maturity extension to May 2013

L+ 300 from L + 200

Reduced principal by $37.0 million

Realized gain of $23.8 million

Annual cash interest savings of $3.0 million

Senior

Subordinated

Notes

Bond

Buyback

IPO Results in Term Loan Reduction

Raised ~$137.8 million in IPO

Reduced Term Loan by $100 million

Created $25 million of leverage cushion

Annual

cash

interest

savings

of

$3.5

-

$5.0

million

Reduced debt by $190 million to

$385 million at December 31,

2009 from $575 million at

December 31, 2008

Liquidity improved to $149

million at December 31, 2009

from $127 million at December

31, 2008

Leverage ratio (as calculated

under the senior credit facility) of

2.88 at December 31, 2009

improved 26% from December

31, 2008’s 3.87

19

Indebtedness and Liquidity

Gross

Debt

Cash

Net

Debt

December 31, 2008

$

575

$

101

$

474

Bond buyback program

(37)

(13)

(24)

Proceeds from IPO

(1)

(100)

27

(127)

Debt services, net

(53)

(46)

(7)

December 31, 2009

$   385

$     69

$

316

Working capital produced $29 million of cash flow

Total

liquidity

(2)

increased

from

$127

million

to

$149

million

Revolver amended to increase availability from $75.5 million to $80.0 million and

extended maturity to May 2013

(1)

Proceeds

from

IPO

excludes

underwriters’

over-allotment

option

exercised

in

January

2010

yielding

additional

cash

proceeds

of

$11

million

(2)

Total liquidity is cash on hand plus undrawn revolver availability

20

US $ in millions

Outlook 2010

Capital spending

$50 to $55 million

Cash interest

$20 to $22 million

Cash pension contributions

$4 to $5 million

Cash restructuring

$10 million

Book tax rate

20% to 25%

Cash tax rate

15% to 20%

21

22

Recent Actions Have Established Strong Earnings Base

Source: Management estimates

(1)

Adjusted EBITDA adds back sponsor fees and expenses, restructuring and related charges, other non-cash expenses and the gain on

extinguishment of debt. A reconciliation of net income or loss to EBITDA and Adjusted EBITDA is presented in the Appendix.

(2)

LIFO Adjustment reflects the impact of the rapid price decline in feed stocks (which are subsequently rebounding) and its flow through

to EBITDA.

(3)

Announced and implemented cost savings not reflected in LTM December 2009 Adjusted EBITDA.

(4)

Higher

than

normal

regulatory

maintenance

in

Europe

YTD

December

2009

compared

to

same

periods

2006,

2007

and

2008.

$91

$18

$15

$12

$136

2009 Adjusted

EBITDA

LIFO   

Adjustment

Implemented

Cost Savings

Turnaround

Costs

Volume

Innovation

Margin

Potential

$(10)  Q1

$

13   Q2

$

53  Q3

$

35  Q4

(3)

(4)

(1)

Economic

Recovery

Stimulus

Package

IR Latex

Capacity

20/20 mix

Enhancement

Continuous cost

reduction

20/20

Introductions

NEXAR™

Slush molding

HiMA

Historical Adjustments

Growth Opportunities and Initiatives

ERP (10/09)

Pernis

(1/10)

(2)

US $ in millions

Kraton

2010 Business Priorities

Innovation-led Top-line

Growth

Vision 20/20

Vitality index at or above 14%

Demonstrate clear traction on step-out innovation projects

Capital Investment

PIR conversion to Belpre

Paulinia

IRL to 2,200 tons

DCS Phase II Belpre

Plan for semi works to increase innovation productivity

Earnings Growth

Return business to full year sustainable growth

Leverage

“smart”

pricing

to

maintain

target

margins

Continue focus on developing economies

Capture stimulus spending opportunities

Critical Capabilities

Leverage enhanced market development capabilities

Implement new sales and marketing incentive plan

Utilize SAP full functionality

Investor Relations

23

Flawlessly execute $50 - $55 million investment plan

Investment Highlights

Leadership

Clear leader in the fast growing, attractive SBC market

Scale

Approximately twice the size of our largest competitor in each of our end-use markets

The only producer with a global footprint and service capabilities

High

Barriers to

Entry

Patented technology, custom designed product, process excellence, global reach

and customer relationships create strong competitive position that cannot be

matched by existing or potential competitors

Kraton, therefore, commands price premiums in the market

Innovation

Most productive innovator of new SBC products, often engineered to meet a specific

customer need

Earnings

Growth

Driven by cost initiatives, economic recovery, return to normal customer inventory

levels and new product introductions

Meaningful operating leverage

Experience

Strong leadership team demonstrating continuous improvement in productivity,

innovation and margin improvement even in a difficult macroeconomic environment

24

Appendix

SBCs

are Engineered to Meet Customer Needs

Primary Raw

Materials

Products

Customer Value

End-Use Applications

Styrene

Unhydrogenated

SBCs

SBS

SIS

SIBS

Butadiene

Isoprene

Hydrogenated

SBCs

SEBS

SEPS

Isoprene Rubber

and Latex

Compounds

Paving

Roofing

Personal Care

Tapes

Formulators

Labels & Printing

Compounds

Packaging

Auto

Lubricants

Medical

Stretch

Soft-Touch

Adhesion

Strength

Durability

Thickening

Compatibility

Clarity

Recyclability

Kraton

is the only provider of these value components across

all products touching a wide array of applications

SBCs

Enhance Performance Attributes

Durability

Elasticity

Impact

Soft Touch

Clarity

Adhesion

We are a Highly Engineered, Performance Materials Business

Reconciliation of Net Income/(Loss) to EBITDA and

Adjusted EBITDA

(1)

The EBITDA measure is used by management to evaluate operating performance. Management believes that EBITDA is useful to

investors because it is frequently used by investors and other interested parties in the evaluation of companies in our industry.

EBITDA is not a recognized term under GAAP and does not purport to be an alternative to net income (loss) as an indicator of operating

performance or to cash flows from operating activities as a measure of liquidity. Since not all companies use identical calculations, this

presentation of EBITDA may not be comparable to other similarly titled measures of other companies. Additionally, EBITDA is not intended

to

be

a

measure

of

free

cash

flow

for

management's

discretionary

use,

as

it

does

not

consider

certain

cash

requirements

such

as

interest

payments, tax payments and debt service requirements.

(2)

Adjusted EBITDA is EBITDA excluding

sponsor fees, restructuring and related charges, non-cash expenses, and the gain on

extinguishment of debt.

US $ in thousands

Three months Ended

Three months Ended

Twelve months Ended

Twelve months Ended

12/31/2009

12/31/2008

12/31/2009

12/31/2008

Net Income (Loss)

(1,516)

$                     

(6,995)

$                     

(290)

$                          

28,419

$                      

Add(deduct):

    Interest expense, net

9,179

8,999

33,956

36,695

    Income tax expense

(882)

1,035

(1,367)

8,431

    Depreciation and amortization expenses

25,168

12,282

66,751

53,162

EBITDA

(1)

31,949

$                    

15,321

$                    

99,050

$                      

126,707

$                     

EBITDA

(1)

31,949

$                    

15,321

$                    

99,050

$                      

126,707

$                     

Add(deduct):

    Sponsor fees and expenses

500

500

2,000

2,000

    Restructuring and related charges

2,144

4,189

                ��      

9,677

13,671

    Other non-cash expenses

450

8,541

4,463

9,670

    Gain on extinguishment of debt

-

-

(23,831)

-

Adjusted EBITDA

(2)

35,043

$                    

28,551

$                    

91,359

$                      

152,048

$                     

Restructuring and related detail:

Cost of goods sold

440

355

6,747

355

Research and development

-

129

-

2,430

Selling, general and administrative

1,704

3,705

2,930

10,886

Total restructuring and related charges

2,144

$                      

4,189

$                      

9,677

$                        

13,671

$