Kraton Performance Polymers, Inc. Slide Presentation dated November 4, 2010

November 4, 2010

Kraton

Performance Polymers, Inc.

Third Quarter 2010 Earnings Conference Call

Exhibit 99.1

Forward-Looking Statement Disclaimer

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. These risks

and uncertainties are more fully described in “Part I. Item 1A. Risk Factors” contained in our Annual Report on 10-K,

as filed with the Securities and Exchange Commission and as subsequently updated in our Quarterly Reports on

Form 10-Q, and include risks related to: conditions in the global economy and capital markets; our reliance on

LyondellBasell Industries for the provision of significant operating and other services; the failure of our raw materials

suppliers to perform their obligations under long-term supply agreements, or our inability to replace or renew these

agreements when they expire; limitations in the availability of raw materials we need to produce our products in the

amounts or at the prices necessary for us to effectively and profitably operate our business; competition in our end-

use markets, by other producers of SBCs and by producers of products that can be substituted for our products; our

ability to produce and commercialize technological innovations; our ability to protect our intellectual property, on

which our business is substantially dependent; infringement of our products on the intellectual property rights of

others; seasonality in our Paving and Roofing business; financial and operating constraints related to our substantial

level of indebtedness; product liability claims and other lawsuits arising from environmental damage or personal

injuries associated with chemical manufacturing; political and economic risks in the various countries in which we

operate; the inherently hazardous nature of chemical manufacturing; health, safety and environmental laws,

including laws that govern our employees’ exposure to chemicals deemed harmful to humans; regulation of our

customers, which could affect the demand for our products or result in increased compliance costs; international

trade, export control, antitrust, zoning and occupancy and labor and employment laws that could require us to

modify our current business practices and incur increased costs; our relationship with our employees; loss of key

personnel or our inability to attract and retain new qualified personnel; fluctuations in currency exchange rates ; the

fact that we do not enter into long-term contracts with our customers; a decrease in the fair value of our pension

assets, which could require us to materially increase future funding of the pension plan; and concentration of

ownership among our principal stockholders, which may prevent new investors from influencing significant corporate

decisions. 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

included

herein.

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

considered

isolation

substitute

for

analysis

our

results

under

GAAP in the United States.

Update on 2010 Business Priorities

Innovation-led Top-line

Growth

Capital Investment

Realizing benefits from ERP implementation

IR and IRL projects continue on plan; operational mid-

2011

Belpre DCS project progressing well

Actively engaged in evaluation of alternatives for

additional HSBC capacity

Earnings Growth

Net Income was $28 million, up $6 million from Q3 2009

Pace of raw material price increases moderated from

second quarter 2010

Adjusted EBITDA of $55 million

TTM Adjusted EBITDA margin on sales revenue of 16%

TTM vitality index 13%

Good momentum in PVC alternatives for wire & cable

and medical applications

Pipeline includes Soft Skins in automotive applications,

Cariflex

products

and

advances

protective

films

Adhesives, Sealants and Coatings End Use Review

32%

TTM Revenue Profile

Change in Sales Revenue

Q3 2010 vs. Q3 2009

Q3 2010 vs. Q2 2010

End Use Revenue

US $ in millions

ASC

$83

$104

$108

100

150

Q3 09

Q2 10

Q3 10

30%

27%

Advanced Materials End Use Review

TTM Revenue Profile

Change in Sales Revenue

End Use Revenue

Change in Sales Revenue

US $ in millions

Q3 2010 vs. Q3 2009

Q3 2010 vs. Q2 2010

$82

$98

$92

100

150

Q3 09

Q2 10

Q3 10

(6)%

12%

Paving and Roofing End-Use Review

33%

TTM Revenue Profile

Change in Sales Revenue

End Use Revenue

Change in Sales Revenue

US $ in millions

P&R

Q3 2010 vs. Q3 2009

Q3 2010 vs. Q2 2010

$91

$107

$111

100

150

Q3 09

Q2 10

Q3 10

22%

Emerging Businesses End Use Review

TTM Revenue Profile

TTM Sales Revenue

End Use Revenue

US $ in millions

$13

$19

Q3 09

Q2 10

Q3 10

Q3 2010

2009

2008

$76

$61

$35

Innovation-led Top Line Growth

Goal -

20% of revenue from innovation

Vitality Index

11%

13%

14%

12%

13%

2005

2006

2007

2008

2009

Q3 2010 TTM

Strong recovery in automotive and transparent applications

Growth in alternatives for PVC in applications such as wire & cable and medical

applications

Innovation

pipeline

includes

Soft

Skins

for

automotive

interior

applications,

Cariflex

products,

elastic

nonwovens,

advances

protective

films,

and

Nexar

membrane

technology

Volume (kT)

Selected Financial Trends

(1)

Excludes by-product revenue

(2)

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

extinguishment of debt

Sales Revenue

(1)

(US $ in Millions)

Adjusted EBITDA

(2)

(US $ in Millions)

Q3 09

Q2 10

Q3 10

EBITDA

44.7

61.9

52.0

Management fees and expenses

0.5

---

Restructuring and related charges

6.4

0.7

1.9

Other non-cash expenses

1.5

0.4

1.0

Adjusted EBITDA

(2)

53.1

63.0

54.9

EBITDA to Adjusted EBITDA

(2)

Walk

(US $ in Millions)

$53

$63

$55

18.1%

19.0%

16.4%

Q3 09

Q2 10

Q3 10

$270

$332

$335

$50

$100

$150

$200

$250

$300

$350

Q3 09

Q2 10

Q3 10

Adjusted EBITDA

Margin

100

120

140

Q3 09

Q2 10

Q3 10

Q3 2010 Financial Overview

(1)

Adjusted EBITDA is GAAP EBITDA excluding management fees, restructuring and related charges, non-cash

expenses, and the gain on extinguishment of debt

US $ in thousands except per share data

Three months Ended

9/30/2009

6/30/2010

9/30/2010

Sales Volume (kT)

Total Operating Revenues

$ 288,518

$ 332,086

$ 335,442

Cost of Goods Sold

218,549

242,973

252,561

Gross Profit

69,969

89,113

82,881

Operating expenses

Research and Development

5,075

5,572

6,125

Selling, General and Administrative

20,282

21,772

24,819

Depreciation and Amortization of Identifiable Intangibles

16,477

11,969

13,027

Gain on Extinguishment of Debt

Equity in Earnings of Unconsolidated Joint Venture

129

162

Interest Expense, net

8,044

6,272

6,127

Income Before Income Taxes

20,220

43,690

32,864

Income Tax Expense

(1,645)

5,095

4,828

Net Income

$ 21,865

$ 38,595

$ 28,036

Earnings

(Loss)

per

Common

Diluted

$ 1.12

$ 1.24

$ 0.88

Weighted

Average

Outstanding

–

Diluted

19,449

31,244

31,590

Adjusted EBITDA

(1)

$ 53,126

$ 63,025

$ 54,947

Q3 2010 Operating Revenue Walk

Q3 2010 vs. Q2 2010

Q3 2010 vs. Q3 2009

US $ in millions

Q3 2010 Adjusted EBITDA

(1)

Walk

Q3 2010 vs. Q2 2010

Q3 2010 vs. Q3 2009

US $ in millions

(1)

Adjusted EBITDA is GAAP EBITDA excluding management fees, restructuring and related charges, non-cash

expenses, and the gain on extinguishment of debt

Q3 2010 reflects a continued release

of cash from Q2 2010, following a

seasonal build in Q1.

Working capital of 29% of TTM

revenue, currently expected to return

to more normal 23% to 25% by year-

end.

US $ in millions

Cash at quarter end of $78 million.

Net Debt-to-Capitalization ratio of

40.0% at quarter end.

TTM Adjusted EBITDA to Net Debt

was 1.56x at 9/30/10.

(1)

Net debt is equal to Long-term debt, less Cash and Cash equivalents

Cash Flow and Balance Sheet

$(36)

Q3 08

Q3 09

Q3 10

Quarterly Net Cash Provided by Operating Activities

1/3/1900

35%

40%

45%

50%

55%

60%

$280

$300

$320

$340

$360

$380

1/1/1900

1/2/1900

Net Debt

(1)

and Net Debt to Capitalization

Selected 2010 Estimates

Working capital (excluding cash) as a % of revenue

~25%

Capital spending

$50 to $55 million

Interest expense

$24 to $25 million

Cash interest

$23 to $24 million

Cash pension contributions

$4 to $5 million

Restructuring charges

$5 to $6 million

Cash restructuring

$14 to $15 million

Depreciation and amortization

$48 to $50 million

Book tax rate

13% to 16%

Cash tax rate

10% to 13%

November 4, 2010

Appendix

Reconciliation of Net Income/(Loss) to EBITDA and

Adjusted EBITDA

US $ in thousands

Three months Ended

9/30/2009

6/30/2010

9/30/2010

Net Income (Loss)

$ 21,865

$ 38,595

$ 28,036

Add(deduct):

Interest expense, net

8,045

6,272

6,127

Income tax expense

(1,645)

5,095

4,828

Depreciation and amortization expenses

16,476

11,969

13,027

EBITDA

(1)

$ 44,741

$ 61,931

$ 52,018

EBITDA

(1)

$ 44,741

$ 61,931

$ 52,018

Add(deduct):

Management fees and expenses

500

Restructuring and related charges

6,427

655

1,864

Other non-cash expenses

1,457

439

1,065

Adjusted EBITDA

(2)

$ 53,125

$ 63,025

$ 54,947

Restructuring and related detail:

Cost of goods sold

$ 6,107

$ -

Selling, general and administrative

320

655

1,864

Total restructuring and related charges

$ 320

$ 655

$ 1,864

(1) The EBITDA measure is used by management to evaluate operating performance. Management believes that EBITDA is useful to investors because it is frequently use

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 management fees, restructuring and related charges, non-cash expenses, and the gain on extinguishment of debt.

November 4, 2010

Kraton

Performance Polymers, Inc.

Third Quarter 2010 Earnings Conference Call