##### 



Exhibit 99.1
 
 Kraton Polymers LLC 3Q 2007 Earnings Call
November 14, 2007




---



##### 



Disclaimers
Forward Looking Statements
This presentation may include forward-looking statements which are statements other than statements of historical fact and are often characterized by the use of words such as believes, expects, estimates, projects, may, will, intends, plans or anticipates, or by discussions of strategy, plans or intentions. All forward-looking statements in this presentation are made based on management
46;s current expectations and estimates, which involve risks, uncertainties and other factors that could cause 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.
GAAP Disclaimer
This presentation includes non-GAAP financial measures, including EBITDA, Adjusted EBITDA and LTM Bank EBITDA. Investors should consider these measures, which we believe investors consider useful in assessing our performance and compliance with our financial covenants, together with the GAAP measures from our financial statements. A reconciliation of the non-GAAP financial measures used in this presentation to the most directly comparable GAAP measures can be found in the attached Appendix. 2




---



##### 



3Q Performance Overview
Total revenues increased by 1% Volumes decreased 4%
Paving and Roofing volumes were down 15% from Q3 06 Core product volume outside of Paving and Roofing grew 6%
EBITDA decreased 31% to $26 million
LTM Bank EBITDA fell 9% to $104 million from 2Q 2007 Cost of Goods per MT increased 15% driven by higher energy costs and monomers Cash grew $15 million to $72 million from 2Q 2007 prior to a $40 million term debt prepayment Decision to rationalize high-cost capacity with closure of SIS unit at Pernis, NL
3




---



##### 



3Q Volume Summary
Strong growth (>5%): Personal Care Packaging and Films IR Latex
Low-Moderate Growth (0-5%): Adhesives, Sealants, & Coatings Compounding Channels Non-core applications
Negative Growth: Paving and Roofing
All core end-uses outside of Paving and Roofing experienced positive growth
4




---



##### 



Kraton Volume Growth
Quarter YTD
Other Non-core Core
6%
5%
Paving & Paving & 4% Total Total Roofing 2% Roofing
1%
Other Non-core
Core -3%
-4%
-15%
5




---



##### 



North American Paving Summary
Central Region Precipitation Asphalt Consumption (TX, OK, KS) (Jan  Aug)
17,799 40 17,453 17,383 64%
16,163 kT inches
25
2004 2005 2006 2007 May  Sept
Total Rainfall
Source: US EIA Source: National Weather
Bureau Normal Rainfall
Weather
Lower Paving & Roofing volumes due to: High asphalt pricing
Lower government spending 6




---



##### 



Innovation Summary
New Product Volume Growth Innovation Revenue as a % of Total
37%
34% 34%
kT 118%
28% 22%
31 29%
14 12% 9% 5%
3Q YTD 2006 3Q YTD 2007 2005 2006 3Q YTD 07
New Products Improved Products
Successful commercialization of innovation
7




---



##### 



Pricing and Margin Summary
Quarter YTD
($ /MT) ($/MT)
2,977 2,952
7% 2,845 4%
Price2,788Price
486 473
-22% 614 -23%
Margin624Margin
15% 2,491 11% 2,479
Cost of2,163Cost of2,231Goods Goods
2006 2007 2006 2007
Price increases have only partially offset higher costs driven by monomers and energy costs
8




---



##### 



Pernis SIS Closure
Restructuring Cost $2 million Net Annual Savings $6  $9 million Production moves to Berre/Belpre/Paulinia Capex Required Less than $1 million Start 4Q 2007 Finish 1H 2008
9




---



##### 



Summary Financial Statistics
($ M M )3Q Year to Date 2007 2006%2007 2006 %
Sales Volume 96 100 -4%275 272 1%
Sales 284 278 2%812 775 5%Other 6 10 -42%20 28 -29%Total Revenues 290 288 1%832 803 4%
Cost of goods sold 244 226 8%702 636 10%Gross profit 46 62 -25%130 167 -22%
R&D Expense 5 6 -10%19 19 -3%SG&A Expense 16 19 -17%49 57 -13%Capex 9 11 -19%20 28 -30%
10




---



##### 



Revenue Summary
Quarter 3Q Highlights
($ MM) 1%
288 290Weak Paving and Roofing volumes
6
Other10offset gains in other end-uses
Revenue
Euro +7.7%
Sales278 284Brazilian Real +11.5% Japanese Yen -1.5%
2006 2007
YTD
4%
832
($ MM) 803 20 3Q 2006 Revenue $288)
28
Price 8)
Other
RevenueCurrency 10)
812
775Volume (12)
Sales
By-product sales (4)
3Q 2007 Revenue $290)
2006 2007
11




---



##### 



Volume Summary
Quarter
-4% kT 100
96 3Q Highlights
Strong growth Personal Care (>5%): Packaging and Films IR Latex
2006 2007Low-Moderate Adhesives, Sealants, YTDGrowth (0-5%): & Coatings Compounding
1%Channels kT 275 272Non-core applications
Negative Paving and Roofing Growth:
12
2006 2007




---



##### 



Cost of Goods Sold Trend
Quarter
3Q Highlights
15%
($ /MT) $2,491$/MT $2,163
3Q 2006 Cost of Goods Sold $2,163
Raw Materials and Other 228 Foreign Exchange 100
2006 2007
YTD 3Q 2007 Cost of Goods Sold $2,491
11%
$2,479
($ /MT) $2,231
2006 2007 13




---



##### 



SG&A and R&D Summary
Quarter 3Q Highlights
-15%
($ MM) 25
R&D21
6Cost reduction successes 5continue to be reflected in SG&A and R&D
SG&A19
16Lowered expected incentive compensation expense
2006 2007
YTDSavings offset strengthening of functional
($ MM)
-11%currencies and Sarbanes-
76
68Oxley spending
R&D
19
19 57 49
SG&A
2006 2007
14




---



##### 



LTM Bank EBITDA  2Q 2007 vs. 3Q 2007
($ MM)
114 (3) (13)
4 2 104
2Q 2007 Volume Margin SG&A / R&D Other Items 3Q 2007
See appendix for definition and reconciliation of LTM Bank EBITDA
15




---



##### 



Debt Covenant Status
Debt / LTM Adjusted Bank Covenant LTM Adjusted Bank Covenant EBITDA / EBITDA Interest Expense 5.45x 2.56x $4mm $12mm LTM LTM
5.23x
Bank Bank EBITDA EBITDA
Cushion Cushion 2.25x
Covenant Level 3Q 07 Covenant Level 3Q 07
16




---



##### 



Liquidity Status
Available Liquidity Before Available Liquidity After $40 Debt Prepayment $40 Debt Prepayment
($ MM) 23% 148
10%
120 120
108
76
Revolver76 76
Capacity76Revolver$40 mm DebtCapacity
40 Prepayment
Cash44
44 32 32Cash4Q 2006 3Q 2007 4Q 2006 3Q 2007
17




---



##### 



Kraton Action Plan
Implement price increases January 1, 2008 Rationalize unprofitable products Drive down unit costs by implementing Pernis SIS restructuring and pursuing further cost reductions Focus on higher-value, higher-return innovations
18




---



##### 



19




---



##### 



Appendix




---



##### 



LTM Bank EBITDA Reconciliation
($MM)
LTM
(Loss)
Net Income Add back:
Interest
Depreciation and Amortization
Taxes
9/30/07 $(33)
44 47 20
6/30/07 $(20)
42 45 22
EBITDA1 Add back:2
Sponsor fees and expenses
Plant turnaround costs
Permitted acquisition costs
Severance related restructuring charges
Specific cost savings expenses
Schedule 1.1 cost
Specified other restructuring charges
Other non-cash charges reducing consolidated net income
LTM Bank EBITDA3
$78
2 3
10 3 1 7
$104
$89
2 2
1 7 3 3 7
$114
(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 securities analysts, institutional 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 liquid
ity. Because all companies do not 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) These adjustments are made pursuant to the Credit and Guaranty Agreement, dated December 23, 2003, as amended as of March 4, 2004, as further amended as of October 21, 2004, as further amended as of February 16, 2006 and as further amended as of May 12, 2006, among KRATON Polymers LLC, as Borrower, Polymer Holdings LLC, certain subsidiaries of KRATON Polymers LLC, as Guarantors, various lenders, Goldman Sachs Credit Partners L.P. and UBS Securities LLC, as Lead Arrangers, G
oldman Sachs Credit Partners L.P., as Syndication Agent, UBS AG, Stanford Branch, as Administrative Agent and Collateral Agent (the senior secured credit facility).
(3) LTM Bank EBITDA is defined as EBITDA adjusted to exclude unusual items and other adjustments permitted in calculating covenant compliance under the senior secured credit facility. Management believes that the inclusion of supplementary adjustments to EBITDA applied in presenting LTM Bank EBITDA are appropriate to provide additional information to investors to demonstrate compliance with the financing covenants contained in the senior secured credit facility.




---



##### 



22