Celanese 2007 Investor Day
December 11, 2007
St. Regis Hotel, New York
Introduction/Agenda
Mark Oberle
Vice President, Investor Relations and Public Affairs
Agenda
    Celanese Corporation 2007 Investor Day
     7:30 a.m.     Registration & Continental Breakfast

     8:30 a.m. ...
Forward Looking Statements,
    Reconciliation and Use of Non-GAAP
    Measures to U.S. GAAP
    This presentation may con...
Pursue. Premier.
David N. Weidman
Chairman and CEO
Who is Celanese?



                                                      Superior Value Creation
                        ...
A leading global integrated producer

                                                                    Celanese
       ...
An attractive intermediate and
    specialty business model


                                                            ...
Geographically balanced global
      positions and diversified end market
      exposure
                                 ...
Integrated businesses aligned to
     accelerate growth

                      Differentiated Intermediates      Specialty...
Strong performance in an uncertain
     business environment


              2007 Updated Guidance                        ...
Since 2000, Celanese has executed
     against a simple strategic foundation

                                        FOCU...
Today’s portfolio: more resilient and
     less volatile

                  Operating EBITDA Margin
                      ...
Today’s portfolio: higher growth, more
     specialty

                                              Operating EBITDA1

  ...
2010 Growth Objectives are aligned
     with the strategic pillars
                                                  Celan...
Committed to delivering value creation

                                                          Primary Growth Focus

  ...
On track and clear path forward to
     accelerate 2010 Growth Objectives


                     Operating EBITDA Growth O...
Asia: enhancing Celanese’s
     geographic lead
                    2007E Regional Split                             2010E...
Asia strategy: high-return growth


            Celanese Nanjing Integrated Complex                Investment Dynamics

  ...
Operational Excellence: offset inflation
     and drive sustainability objectives

                           Fixed Cost/R...
Results have led to significant value
      creation

                                                                    ...
Current balance sheet strategy for
     cash deployment

                                                                 ...
Bias for growth and high-return projects


                                                                               ...
Celanese core values: our DNA
         …sense of urgency…                          …a precondition…
     ►                ...
Expectations from today’s meeting


         Portfolio is stronger, more resilient
     ►

         It’s the model – not t...
Advanced Engineered Materials
Sandra Beach Lin
Executive Vice President and President, Ticona
Advanced Engineered Materials:
     delivering performance driven solutions

                                             ...
Well positioned for continued growth


     ►   Premier Franchise
          Differentiated business model
          Sustai...
Providing valuable solutions to
     extreme requirements
                                                                ...
Excellent Products: value of technology
     and performance is realized in price

     $100 / kg                         ...
High performance product portfolio
     with attributes that customers require

                                          ...
Extreme Temperature

                                                          Range of Temperature Requirements

        ...
Extreme Requirements: precise
     applications in complex environments

       No Industry Demands More Than Medical Syst...
Extraordinary Engineering:
     right people – right place – right time


                   Engineered Polymers Industry ...
Intellectual capital enables
     performance-driven solutions


                                                         ...
Case study: orthopedic replacement
     joints

                                                                Excellent
...
Broad range of end-use applications to
     targeted niches…
                               Revenue by End-Use 2007E ~ $1 ...
…requiring a consistent global brand
     experience




              Americas                        Europe             ...
1,000s of products in 1,000s of
     applications across dozens of industries




39
Sustained performance: proven track
     record of revenue and earnings growth

                                          ...
Strong correlation between value
     delivered and specification strength

                                           Val...
Premier franchise

                            Relative Financial Performance versus
                                     ...
Well positioned for continued growth


     ► Premier Franchise
             Differentiated business model
             Su...
Committed to delivering value creation

                                                       Primary Growth Focus

     ...
An important contributor to the
     Celanese growth strategy


        Operating EBITDA Growth Objectives
               ...
46
Power
     Empower sustainable
     technologies




47
Technologies to reduce emissions and
     improve fuel efficiency

            Fuel cells



                             ...
Leading engineered polymers in
     emissions innovation and fuel efficiency
                                             ...
Emissions reduction beyond fuel
     systems

                                        Customer Requirements
     Metallic-...
Safety
     Advance intelligent
     systems



51
Vectra® LCP: Translating connector
     leadership into LED lighting
                                                     ...
Life
     Enhance living
     comfort



53
GUR® UHMW-PE: well positioned to
     provide solutions for global water
     filtration                                  ...
Long history in Asia provides
     competitive advantage

     ►   40 years of experience in Asia through strong affiliate...
Nanjing provides platform for Ticona
     growth in Asia


                                                             Fu...
Technologies to reduce particulate
     emissions: coal-fired power plants
                                               ...
Coal-fired power plants provide
     significant growth opportunity


                                          ►   Charac...
Significant opportunity for increased
     penetration in high growth region
                                             ...
Translating auto application expertise
     to Asia
            Select Interior               Fuel Delivery Systems
      ...
Application development requirement:
     a global network to serve global demand



                         Application
...
Industry recognition of innovation



     Winner Of SPE Innovation Award
     BMW X5
         Celstran® LFRT fender carri...
AEM is well positioned for continued
     growth

     ►   Premier Franchise
          Differentiated business model
     ...
Consumer and Industrial Specialties
Doug Madden
President, Acetate, AT Plastics and Emulsions & PVOH
Consumer and Industrial Specialties:
     value-added specialty businesses

                                              ...
Committed to delivering value creation

                                                       Primary Growth Focus

     ...
CIS: path to improved earnings


                     Operating EBITDA Growth Objectives
                             (ver...
Consumer Specialties: stable earnings
     and cash generation

                                                          ...
Acetate Products: execution of
     strategy continues to deliver earnings growth


      Timeframe                       ...
Successful revitalization and strategy
     progress for Acetate Products
     ►   Significant improvement to manufacturin...
APL Acquisition: a strategic fit

            Acetate Products Limited                               Benefits to Celanese
...
Acetate Products: optimized global
     manufacturing footprint

                              Spondon, United Kingdom   L...
Strategically positioned for further
     expansion in growth regions
                                                    ...
Consumer Specialties: successful
     revitalization and continued execution
     of current strategy

                   ...
Industrial Specialties: integrated
     technology solutions

                                                            ...
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celanese 2007_investor_day_-_complete

  1. 1. Celanese 2007 Investor Day December 11, 2007 St. Regis Hotel, New York
  2. 2. Introduction/Agenda Mark Oberle Vice President, Investor Relations and Public Affairs
  3. 3. Agenda Celanese Corporation 2007 Investor Day 7:30 a.m. Registration & Continental Breakfast 8:30 a.m. Introduction/Agenda Mark Oberle, Vice President, Investor Relations and Public Affairs 8:35 a.m. Pursue. Premier. David Weidman, Chairman & CEO 9:00 a.m. Advanced Engineered Materials Sandra Beach Lin, Executive Vice President and President, Ticona 9:25 a.m. Consumer and Industrial Specialties Doug Madden, President, Acetate, AT Plastics and Emulsions & PVOH 9:50 a.m. Morning Break 10:00 a.m. Acetyl Intermediates John J. Gallagher III, Executive Vice President and President, Acetyls and Celanese Asia 10:25 a.m. Global Operational Excellence Jim Alder, Senior Vice President, Operations & Technical 10:50 a.m. Value Creation Steven Sterin, Senior Vice President and Chief Financial Officer 11:15 a.m. Closing Comments & Final Q&A David Weidman, Chairman & CEO 12:00 p.m. Luncheon 3
  4. 4. Forward Looking Statements, Reconciliation and Use of Non-GAAP Measures to U.S. GAAP This presentation may contain “forward-looking statements,” which include information concerning the company’s plans, objectives, goals, strategies, future revenues or performance, capital expenditures, financing needs and other information that is not historical information. When used in this presentation, the words “outlook,” “forecast,” “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the company will realize these expectations or that these beliefs will prove correct. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements contained in this release. Numerous factors, many of which are beyond the company’s control, could cause actual results to differ materially from those expressed as forward-looking statements. Certain of these risk factors are discussed in the company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. This presentation reflects four performance measures, operating EBITDA, adjusted earnings per share, net debt and adjusted free cash flow as non-U.S. GAAP measures. The most directly comparable financial measure presented in accordance with U.S. GAAP in our consolidated financial statements for operating EBITDA is operating profit; for adjusted earnings per share is earnings per common share-diluted; for net debt is total debt; and for adjusted free cash flow is cash flow from operations. ►Operating EBITDA, a measure used by management to measure performance, is defined as operating profit from continuing operations, plus equity in net earnings from affiliates, other income and depreciation and amortization, and further adjusted for other charges and adjustments. We provide guidance on operating EBITDA and are unable to reconcile forecasted operating EBITDA to a GAAP financial measure because a forecast of other charges and other adjustments is not practical. Our management believes operating EBITDA is useful to investors because it is one of the primary measures our management uses for its planning and budgeting processes and to monitor and evaluate financial and operating results. Operating EBITDA is not a recognized term under U.S. GAAP and does not purport to be an alternative to operating profit as a measure of operating performance or to cash flow from operations as a measure of liquidity. Because not all companies use identical calculations, this presentation of operating EBITDA may not be comparable to other similarly titled measures of other companies. Additionally, operating 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 nor does it represent the amount used in our debt covenants. ►Adjusted earnings per share is a measure used by management to measure performance. It is defined as net earnings (loss) available to common shareholders plus preferred dividends, adjusted for other charges and adjustments, and divided by the number of basic common shares, diluted preferred shares, and options valued using the treasury method. We provide guidance on an adjusted earnings per share basis and are unable to reconcile forecasted adjusted earnings per share to a GAAP financial measure because a forecast of other charges and other adjustments is not practical. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding various financial and business trends relating to our financial condition and results of operations, and that when U.S. GAAP information is viewed in conjunction with non-U.S. GAAP information, investors are provided with a more meaningful understanding of our ongoing operating performance. This non-U.S. GAAP information is not intended to be considered in isolation or as a substitute for U.S. GAAP financial information. ►Net debt is defined as total debt less cash and cash equivalents. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding changes to the company’s capital structure. Our management and credit analysts use net debt to evaluate the company's capital structure and assess credit quality. This non-U.S. GAAP information is not intended to be considered in isolation or as a substitute for U.S. GAAP financial information. ►Adjusted free cash flow is defined as cash flow from operations less capital expenditures, other productive asset purchases, operating cash from discontinued operations and certain other charges. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding changes to the company’s cash flow. Our management and credit analysts use adjusted free cash flow to evaluate the company’s liquidity and assess credit quality. This non-U.S. GAAP 4
  5. 5. Pursue. Premier. David N. Weidman Chairman and CEO
  6. 6. Who is Celanese? Superior Value Creation Strategy ► Industry Leader Clear focus on growth and value creation ● Geographically balanced global positions Culture Leading Global ● Diversified end market Strong performance Integrated Producer exposure built on shared of Chemicals and ► Strong Cash Generation principles and Advanced Materials objectives ► Significant Growth Capability Execution ● Track record of execution Demonstrated track record ● Clearly defined of delivering results opportunities 6
  7. 7. A leading global integrated producer Celanese 2007 Revenue1: $6.5B 2007 Op. EBITDA Margin (est.): ~20% Advanced Engineered Consumer and Industrial Acetyl Intermediates Materials Specialties 2007 Revenue1: 2007 Revenue1: 2007 Revenue1: $1.0 B $2.5 B $3.0 B 2007 Op. EBITDA Margin (est.):~25% 2007 Op. EBITDA Margin (est.):~15% 2007 Op. EBITDA Margin (est.):~25% ► ► ► Leading global producer Leading global producer Leading global integrated of engineered polymers of cellulose acetate producer of acetyl products products ► ► Strategic affiliates in Asia Significant presence in all ► Leading global producer three major regions of vinyl emulsion products 1 Represents 2007 estimated third party net sales 7
  8. 8. An attractive intermediate and specialty business model Celanese Commodity Intermediate Specialty Consumer Oil & Gas Chemicals Products Products Products Motorola ► Exxon Dow* Dow* Rohm & Haas* ► ► ► ► ► Toyota ► BP ► Lyondell ► Eastman* ► ICI* ► Sherwin- ► Shell ► Methanex ► PPG* Williams ► FMC* ► Siemens Celanese 2001 2007 8 * Celanese internal peer group
  9. 9. Geographically balanced global positions and diversified end market exposure Paints & Coatings Textiles Food & Beverage 15% 6% 5% Automotive Consumer & 9% 28% 44% 28% Industrial Adhesives 4% Consumer & Medical Construction Applications 7% 11% Chemical Performance Additives Industrial Applications 5% 4% Filter Media Paper & 16% Packaging Other 8% 10% Notes: End market breakdown based on 2007 estimated gross sales 9 Geographic breakdown based on 2007 estimated gross sales to external customers by destination
  10. 10. Integrated businesses aligned to accelerate growth Differentiated Intermediates Specialty Products Building Block Acetate Consumer Specialties Anhydride (CS) Nutrinova and esters Acetic Acid Emulsions Industrial Raw VAM PVOH Specialties Materials (IS) AT Plastics Formaldehyde Ticona Advanced Engineering Acetyl Intermediates Engineered Polymers (AI) Materials (AEM) Affiliates 10
  11. 11. Strong performance in an uncertain business environment 2007 Updated Guidance 2008 Initial Outlook Adjusted Operating Adjusted Operating EPS EBITDA ($MM) EPS EBITDA ($MM) Current $3.26 - $3.31 $1,285 - $1,295 $3.35 - $3.65 $1,280 - $1,350 Previous $3.10 - $3.20 $1,240 - $1,270 ► Execution of growth objectives ► Deliver on growth objectives ► Strong acetyl environment ► Continue to offset inflation through Operational Excellence ► Delivering on Operational Excellence objectives ► Volatile raw material environment expected to continue ► Mitigating raw material volatility ► Continued strength in Europe and Asia Increasing guidance and expecting strong 2008 earnings growth 11
  12. 12. Since 2000, Celanese has executed against a simple strategic foundation FOCUS Participate in businesses where we have a sustainable competitive advantage Celanese INVESTMENT REDEPLOYMENT Divest non-core assets and Leverage and build on Strategic revitalize underperforming advantaged positions that Pillars businesses optimize our portfolio GROWTH Aggressively align with our customers and their markets to capture growth 12
  13. 13. Today’s portfolio: more resilient and less volatile Operating EBITDA Margin ► 25% Current portfolio provides overall higher level of earnings 20% 20% ► Historic view with today’s 19% 19% 20% portfolio reflects significantly less 17% 19% 16% volatility 15% 15% 17% 15% Current portfolio range: 15% - 20% 16% Historic portfolio range: 10% - 20% ► One-third of portfolio is new to 10% 11% 11% 11% the company since 2000 10% ► Growth objectives will continue 5% to bolster portfolio 2000 2001 2002 2003 2004 2005 2006 2007E As Reported Pro Forma for Current Portfolio 13
  14. 14. Today’s portfolio: higher growth, more specialty Operating EBITDA1 ► Strategic growth plans Advanced Engineered Materials Consumer and Industrial Specialties continue to accelerate Acetyl Intermediates 1,400 earnings of specialty businesses 1,200 ● Essentially all growth has come ~45% 1,000 $ in millions from specialty businesses 38% ● Two-thirds of 2010 Growth 800 Objectives expected from 600 specialty businesses ► Resulting in: 400 ~55% 62% ● Higher growth rates 200 ● Increased overall earnings - power of the portfolio 2005 2007E ● Reduced volatility 12005 and 2007E Operating EBITDA excludes Other Activities of ($122) and ~($100) respectively for the periods presented 14
  15. 15. 2010 Growth Objectives are aligned with the strategic pillars Celanese 2010 Objective: $350-$400 $300-$350 million EBITDA Growth Balance Operational Asia Revitalization Innovation Organic Sheet Excellence ► ~$200 million ► Nanjing complex ►APL acquisition ► AI: sustained ► $140 million in ► AEM: 9% debt pay growth and estimated cost volume growth ● Launched ● Acquired down high industry improvements acetic acid EBITDA ► Growth in and emulsions utilization ► Debt ► Significant units ‘green’ ● Realizing ► AEM: refinancing improvement in applications ● 4 units under synergies to near- increased energy efficiency construction ►Announced plans investment lbs. per auto ● Announced grade for Industrial compounding unit Specialties ► $400 million ► AEM: direct to share China repurchase ► CS: continued growth of Acetate venture Increasing 2010 Growth Objectives relationships by $50 million to $350 - $400 million 15 Exceeding initial expectations
  16. 16. Committed to delivering value creation Primary Growth Focus Balance Operational EBITDA Group Asia Revitalization Innovation Organic Sheet Excellence Impact Consumer and EPS Operating EBITDA X X X X Industrial >$100MM Specialties Advanced X X X X Engineered >$100MM Materials Acetyl X X X >$100MM Intermediates Celanese Incremental X X EPS Corporate $350 – $400 million increased EBITDA profile plus EPS potential by 2010 16
  17. 17. On track and clear path forward to accelerate 2010 Growth Objectives Operating EBITDA Growth Objectives Advanced Engineered Materials 400 ► AEM: volume growth > 2X GDP Consumer and Industrial Specialties Acetyl Intermediates through further penetration ► CIS: Acetate continues $ in millions execution on revitalization 200 strategy; Emulsions/PVOH revitalization commences ► AI: Nanjing acetic acid plant startup leads integrated complex 0 2007 2008 2009 2010 17
  18. 18. Asia: enhancing Celanese’s geographic lead 2007E Regional Split 2010E Regional Split Revenue Revenue Asia Asia ~35% 28% Earnings Earnings Asia1 Asia ~33% ~50% Approximately 50% of earnings from the fastest growing region Note: Revenue breakdown based on 2007 estimated net sales 18 1 Earnings breakdown based on 2007 estimated Operating Profit
  19. 19. Asia strategy: high-return growth Celanese Nanjing Integrated Complex Investment Dynamics GUR® Celstran® Total investment: $300 - ► Warehouse Flare Unit Unit $350 million – over 80% complete Acetic Anhydride Vinyl Acetate Total revenue: $600 - $800 ► Unit Monomer Unit million when sold out by 2010 Incremental EBITDA: $120 - ► Acetic Acid Utilities / $150 million by 2010 Unit Tank Farm Emulsions Complex Administration & ROIC = 25 – 30% Compounding Maintenance 19
  20. 20. Operational Excellence: offset inflation and drive sustainability objectives Fixed Cost/Reduction Above Inflation $1 billion year overall productivity 2010 Sustainability Goals 600 Injury rate Cumulative inflation $ million per year Greenhouse gases Air emissions 2007 progress Waste Energy 0 2001 2002 2003 2004 2005 2006 2007E 0 20 40 60 80 Fixed Cost Reduction % Reduction versus 2005 20
  21. 21. Results have led to significant value creation Enterprise Value2 Cumulative Adjusted Free Cash Flow 2,500 10,000 2,000 8,000 1,500 $ in millions 6,000 $ in millions 1,000 4,000 500 2,000 0 0 2000 2001 2002 2003 2004 2005 2006 2007E YE 2000 IPO Current 1 Cumulative Adjusted free cash flow Equity Net debt 1 Adjusted free cash flow calculated as cash flow from operations less capital expenditures less other productive asset purchases less operating cash from discontinued operations plus certain other charges 21 2 Enterprise value represents market capitalization (Current - as of December 7, 2007) plus net debt and minority interest
  22. 22. Current balance sheet strategy for cash deployment Significant Value Creation High ► Cost reduction & revitalization projects ► Asset expansion – high Return on Capital Deployed/ growth area ► Core/bolt-on acquisitions Value Creation Returning Cost of Capital Return on of Realizing Value/ ►Difficulty Capital – low Asset expansion Deployed/ Skills orValue Creation Competencies Required growth area ► Share repurchase Returning Cash to Shareholders ► Dividend ► Debt repayment ► Hold cash Low Difficulty of Realizing Value/ Low High Skills or Competencies Required 22
  23. 23. Bias for growth and high-return projects Significant Value Creation High ► Cost reduction & revitalization projects ~75% of ► Asset expansion – high Return on Capital Deployed/ Capital growth area ► Core/bolt-on acquisitions Deployed Value Creation Returning Cost of Capital Since 2005 ► Asset expansion – low growth area 14% ► Share repurchase Returning Cash to Shareholders ► Dividend ► Debt repayment ► Hold cash Low Difficulty of Realizing Value/ Low High Skills or Competencies Required 23
  24. 24. Celanese core values: our DNA …sense of urgency… …a precondition… ► ► …performance driven… …highest standards… ► ► …think globally… …attract, develop and retain… ► ► …create growth opportunities… …continuously learn… ► ► 24
  25. 25. Expectations from today’s meeting Portfolio is stronger, more resilient ► It’s the model – not the molecule ► Ahead of expectations and growth objectives ► More earnings growth opportunities identified ► Celanese culture: enabler ► 25
  26. 26. Advanced Engineered Materials Sandra Beach Lin Executive Vice President and President, Ticona
  27. 27. Advanced Engineered Materials: delivering performance driven solutions Celanese 2007 Revenue1: $6.5 B 2007 Op. EBITDA Margin (est.): ~20% Advanced Engineered Consumer and Industrial Acetyl Intermediates Materials Specialties 2007 Revenue1: $1.0 B 2007 Op. EBITDA Margin (est.): ~25% Korea Engineering Fortron Industries Polyplastics Ticona Plastics Ownership 50% Ownership 45% Ownership 50% 2007E Total Affiliate Revenue2 $1.3 B > 2X GDP volume growth ► Comprehensive portfolio of high-performance engineering polymers ► Innovation in automotive and non-automotive applications drives earnings growth ► China expansion is platform for further penetration into end-use applications ► 1Represents 2007 estimated third party net sales 27 2Equity affiliates total revenue not included in AEM results
  28. 28. Well positioned for continued growth ► Premier Franchise Differentiated business model Sustained performance ► Growth through Innovation and Technology Capitalize on Megatrends Asia expansion 28
  29. 29. Providing valuable solutions to extreme requirements AEM “Sweet Spot” Excellent Intensive Engineering ► Highly Specification- ► Products Driven Functional Parts Leading-Edge ► Technical, Market and Highly engineered polymers – Application Expertise high performance portfolio Extreme Extraordinary Requirements Engineering Collaborative engineering Precise applications right people – right place in complex – right time environments 29
  30. 30. Excellent Products: value of technology and performance is realized in price $100 / kg Price for Performance $10 / kg $3 / kg $100/kg High-Performance Polymers (HPP) 5% $10/kg Engineering Thermoplastics (ETP) $3/kg others = 2% Performance Price Range Ranges PU = 6% 95% Standard Polymers $1/ kg PET = 7% ABS, SAN, ASA: 3% PS, EPS = 8% PVC = 17% PE = 31% PP = 21% $1/kg Range of Products 30
  31. 31. High performance product portfolio with attributes that customers require Extreme Medical Chemical Abrasion Dielectric Functional Product Temperature Grade Resistance Resistance Strength Aesthetics ● ● ● ● ● Hostaform®/POM (Polyacetals) ● ● ● ● GUR® (Ultra-high molecular weight PE) ● ● ● ● ● Celanex® (Polyester engineering resins) Vectra® ● ● ● ● ● (Liquid Crystal Polymer) Celstran® ● ● ● ● ● (Long fiber reinforced thermoplastics) ● ● ● ● Fortron® (Polyphenylensulfide) 31
  32. 32. Extreme Temperature Range of Temperature Requirements Hostaform® GUR® Riteflex® Fortron®, Vectra®,Celstran® Celanex Critical Part Specification Bulk polymers PET, PEN Bulk polymers PP, PE, PVC Continuous Use Temperature (40)°F extreme cold 600°F extreme heat Ticona polymers 32
  33. 33. Extreme Requirements: precise applications in complex environments No Industry Demands More Than Medical Systems Competitive Products Ticona High Requirements PP PET Temp. PA POM + = + + FDA compliance + + - = Chemical resistance + = - = Steam sterilization + - - + Dimensional stability + + - - Wear resistance + - + + FDA drug master file ++ = Value-in-use = - Ticona POM: Only polymer that meets ALL requirements 33
  34. 34. Extraordinary Engineering: right people – right place – right time Engineered Polymers Industry Supply Chain Material and Performance Specifications AEM Raw Converter Manufacturer End-use ● Monomer & Material ● Injection ● Components polymer Customer Supplier ● Finished producer molding ● Compounder ● Extrusion goods AEM Solutions – processing expertise and material performance 34
  35. 35. Intellectual capital enables performance-driven solutions OEM Specification Prototype Opportunity Generation Part Design Testing Modeling & Simulation Part Validation ► Overall development cycle: 18 - 24 months ► ~70% of Ticona business is specification-based 35
  36. 36. Case study: orthopedic replacement joints Excellent Products GUR® UHMW-PE Exceptional Defensibility Medical grade ► Abrasion resistance ► Human cartilage ► replacement Extreme Extraordinary Requirements Engineering Product chemists – ► Bio-compatibility ► bridging requirements and Wear resistance ► polymer properties Impact strength ► Product stewards – ► ensuring regulatory compliance FDA compliance ► Mechanical designers – ► translating the polymer into the molded part GUR®: Only engineered polymer approved for hip and knee replacements 36
  37. 37. Broad range of end-use applications to targeted niches… Revenue by End-Use 2007E ~ $1 billion Medical 5% Transportation 47% Other 6% ● Fuel systems ● Drug delivery systems ● Safety systems ● Medical implants ● Mechanical components Alternate Fabrication 12% Electrical & Electronics 8% Consumer & Appliance Industrial 10% 12% ● Emissions filtration ● Textiles ● Communication systems ● LED lighting ● Connectors ● Water purification ● Fluid handling ● Durable household goods ● Gearing ● Bakeware 37
  38. 38. …requiring a consistent global brand experience Americas Europe China ► Application development ► Application development ► Application development ► Compound development ► Compound development ► Compound development ► Polymer development ► Testing ► Polymer development ► Testing ► Processing optimization ► Testing ► Injection molding ► Processing optimization 38
  39. 39. 1,000s of products in 1,000s of applications across dozens of industries 39
  40. 40. Sustained performance: proven track record of revenue and earnings growth Operating EBITDA and Revenue ► AEM has consistently 300 1,200 delivered continued sales and earnings growth Operating EBITDA ($ in millions) 225 900 ► High energy and raw Revenue ($ in millions) material costs compressed 2007E Operating EBITDA 150 600 Estimated impact of ~250 – 350 bps 75 300 ► Volume growth in both automotive and non- automotive applications 0 0 globally 2002 2003 2004 2005 2006 2007E Operating EBITDA Revenue 40
  41. 41. Strong correlation between value delivered and specification strength Value of Specification Specification Strength ► Richness of portfolio ► Long-term customer Solvay relationships AEM Specification Strength ► Technical and DSM DuPont application expertise BASF LANXESS ► Global technical and DOW SABIC/PC manufacturing presence Lyondell/Basell Nova ► High value-in-use applications SABIC/Core ► Limited substitute materials Value Delivered 41
  42. 42. Premier franchise Relative Financial Performance versus AEM Peer Group 15% Celanese AEM ► Fastest earnings growth Operating Profit as a % of Sales ► Highest relative DSM DuPont Solvay SABIC/SIP profitability GE Plastics BASF ► EBITDA multiple Solvay continues to trail peers DuPont despite continued Celanese AEM earnings strength DSM BASF 2003 YTD 2007 Peer group: corresponding segments of BASF, DSM, DuPont, GE Plastics, Solvay Plastics YTD 2007 figures include one quarter of GE plastics, now SABIC/SIP AEM results exclude certain other charges, COC divestiture and equity earnings from affiliates 42
  43. 43. Well positioned for continued growth ► Premier Franchise Differentiated business model Sustained performance ► Growth through Innovation and Technology Capitalize on Megatrends ● Asia expansion ● 43
  44. 44. Committed to delivering value creation Primary Growth Focus Balance Operational EBITDA Group Asia Revitalization Innovation Organic Sheet Excellence Impact Consumer and EPS Operating EBITDA X X X X >$100MM Industrial Specialties Advanced X X X X >$100MM Engineered Materials Acetyl X X X >$100MM Intermediates Celanese Incremental X X EPS Corporate $350 – $400 million increased EBITDA profile plus EPS potential by 2010 44
  45. 45. An important contributor to the Celanese growth strategy Operating EBITDA Growth Objectives (versus 2006 Baseline) ► Volume growth > 2X GDP 100 ► Innovation in automotive and non-automotive applications drives continued earnings $ in millions improvement 50 ► Expansion in China provides platform for further penetration in end-use applications 0 2007 2008 2009 2010 45
  46. 46. 46
  47. 47. Power Empower sustainable technologies 47
  48. 48. Technologies to reduce emissions and improve fuel efficiency Fuel cells Alternative renewable fuel sources help reduce CO2 Hybrid-engine systems Alternative fuels Engine combustion efficiency Development Advanced air management Weight time to full enhances engine reduction commercialization combustion efficiency 48
  49. 49. Leading engineered polymers in emissions innovation and fuel efficiency Customer Requirements ► Chemical resistance ► Impact resistance ► Dimensional stability ► High heat Drivers: Alternative fuels – Bio-fuels ► 65 million lbs. 80 million lbs. Air quality ► acetal ETPs SORE emissions ► Legislation – environmental & safety ► in 2006 in 2010 Turbocharged Engine Fuel Module E85 Compatible Polymers Fortron® PPS Hostaform® XF Air Cooler 49 Source: Celanese estimates
  50. 50. Emissions reduction beyond fuel systems Customer Requirements Metallic-look Hostaform®/POM ► Functional aesthetics ► Eliminates painting/plating ► Wear resistance ► Strength ► Reduces VOCs ► Color matching to interior painted metallic parts ► Saves $1 to $4 per vehicle Significant opportunity: currently only ~200,000 out of 120 million doors worldwide use metallic-look POM 50
  51. 51. Safety Advance intelligent systems 51
  52. 52. Vectra® LCP: Translating connector leadership into LED lighting Customer Requirements High flow ► Low emissions ► Dimensional ► stability Pinpoint light ► Drivers: source Improved safety ► Lower energy consumption ► $5.1 billion $17.4 billion Miniaturization ► Aesthetics ► in 2006 in 2017 Design trends ► Audi A8 Audi R8 LED Street Lamps Applying Connector Daytime Running 54 LEDs per Expertise to New Lights Headlamp Technologies 52 Source: Philips
  53. 53. Life Enhance living comfort 53
  54. 54. GUR® UHMW-PE: well positioned to provide solutions for global water filtration Customer Requirements ► NSF specification ► Proprietary binding agent to boost filtration efficiency Drivers: Population growth ► Global requirements ► 5.5 billion with 6.1 billion with Economical alternative to ► bottled water clean water clean water World Health Organization ► access – 2006 access – 2015 standards 20% GUR® Growth Shower Filter Faucet Filter Drinking Water Filter 2000 2003 2006 2008 2010 54
  55. 55. Long history in Asia provides competitive advantage ► 40 years of experience in Asia through strong affiliate relationships ► Strong relationships with our customers in Asia ► Expanding model of local customer support and development ► Full range offering of leading products ► Investing in local manufacturing 55
  56. 56. Nanjing provides platform for Ticona growth in Asia Fully Integrated Complex Celanese Nanjing Integrated Complex GUR® and Celstran® unit GUR® Celstran® ► Warehouse Flare construction underway and Unit Unit production expected in 2008 ► Acetic Anhydride Vinyl Acetate Recently announced addition of new compounding plant at Unit Monomer Unit Nanjing in 2009 ► Application development center in Shanghai Acetic Acid Utilities / ► Incremental contribution by Unit Tank Farm Emulsions 2010: Complex ~$100 million in annual ● sales Administration & Compounding Maintenance 56
  57. 57. Technologies to reduce particulate emissions: coal-fired power plants Customer Requirements Chemical resistance ► High heat ► Drivers: Increased global power ► consumption 1,300 GW 2,100 GW More coal-fired power plants ► coal-fired coal-fired Air quality ► Environmental legislation ► power in 2006 power in 2020 Fortron® PPS Coal-fired Power Plant Air Coal-fired Power Plant Air Filter Bags Filter System 57
  58. 58. Coal-fired power plants provide significant growth opportunity ► Characteristics of filter bags Flue Gas Cleaning Bag House for Coal-fired Power Plants Typically 6 inches in diameter and 26 feet in length Up to 20,000 bags used per house Life span of 3 to 5 years ► Filter bags contain an average of 4.0 to 4.5 lbs. of Fortron® PPS ► Electricity from coal in China will increase more than 80% by 2020 2006: 413 GW coal-fired power 2020: 760 GW coal-fired power 58
  59. 59. Significant opportunity for increased penetration in high growth region Advanced Engineered Materials Global Auto Production Type of Resins China Japan 6 2001 U.S. Germany 13 2007E India S. Korea 2010E 18 China production France nearly doubles Highest Brazil within 5 years 40 Current Spain Model Canada 2006 Production China 2.5 Trend Current Production Growth 2006-2012 Mexico 0 3,000 6,000 9,000 12,000 15,000 Pounds per Vehicle Vehicle Production (Thousand units) Source: Global Insight Source: Celanese Estimates 59
  60. 60. Translating auto application expertise to Asia Select Interior Fuel Delivery Systems Components Fuel reservoirs ► Instrument clusters ► Fuel limit valves ► Metallic-look controls ► Roll-over valves ► Safety restraints ► Fuel flanges ► Overhead consoles ► Fuel pumps ► Door Systems Structural Parts Window lifts ► Door locks ► Front-end modules ► Door modules ► Instrument panels ► Power motor housings ► Sunroof systems ► 60
  61. 61. Application development requirement: a global network to serve global demand Application Development Center Frankfurt New Application Development Center Application Shanghai Development Centers Florence, KY Auburn Hills, MI 61
  62. 62. Industry recognition of innovation Winner Of SPE Innovation Award BMW X5 Celstran® LFRT fender carrier ► ► Strong, lightweight Winner Of SPE 2007 Grand Innovation Award Mercedes-Benz C-Class Vectra® LCP active safety sensor ► ► Detects moisture, activates wipers, dries brakes 62
  63. 63. AEM is well positioned for continued growth ► Premier Franchise Differentiated business model Sustained performance ► Growth through Innovation and Technology Capitalize on Megatrends Asia expansion 63
  64. 64. Consumer and Industrial Specialties Doug Madden President, Acetate, AT Plastics and Emulsions & PVOH
  65. 65. Consumer and Industrial Specialties: value-added specialty businesses Celanese 2007 Revenue1: $6.5 B 2007 Op. EBITDA Margin (est.): ~20% Advanced Engineered Consumer and Industrial Acetyl Intermediates Materials Specialties 2007 Revenue1: $2.5 B 2007 Op. EBITDA Margin (est.): ~15% Consumer Specialties Industrial Specialties 2007 Revenue1: 2007 Revenue1: $1.1 B $1.4 B 2007 Op. EBITDA Margin (est.): ~25% 2007 Op. EBITDA Margin (est.): ~8% Leading global positions in both businesses ► Significant consumers of Acetyl Intermediates products ► Downstream integration mitigates raw material volatility ► GDP+ growth ► 1Represents 2007 estimated third party net sales 65
  66. 66. Committed to delivering value creation Primary Growth Focus Balance Operational EBITDA Group Asia Revitalization Innovation Organic Sheet Excellence Impact Consumer and EPS Operating EBITDA X X X X >$100MM Industrial Specialties Advanced X X X X >$100MM Engineered Materials Acetyl X X X >$100MM Intermediates Celanese Incremental X X EPS Corporate $350 – $400 million increased EBITDA profile plus EPS potential by 2010 66
  67. 67. CIS: path to improved earnings Operating EBITDA Growth Objectives (versus 2006 Baseline) ► Ahead of schedule to deliver > $100 million in additional 150 >$100 million EBITDA by 2009 ► Consumer Specialties 100 Successful completion of Acetate $ in millions revitalization Integration of Acetate Products Limited (APL) acquisition 50 ► Industrial Specialties Revitalization of emulsions and PVOH businesses 0 Innovation in key customer 2007 2008 2009 2010 applications Globalization in emerging economies Consumer Specialties Industrial Specialties 67
  68. 68. Consumer Specialties: stable earnings and cash generation Consumer and Industrial Specialties 2007 Revenue1: $2.5 B 2007 Op. EBITDA Margin (est.): ~15% Consumer Specialties Industrial Specialties 2007 Revenue1: $1.1 B 2007 Revenue1: $1.4 B 2007 Op. EBITDA Margin (est.): ~25% 2007 Op. EBITDA Margin (est.): ~8% Acetate Products Nutrinova Emulsions PVOH AT Plastics and Ventures Leading global franchises ► Stable, consistent cash flows ► Economically stable; minimal earnings volatility ► Closer to the final consumer ► Growth opportunities through continued innovation and customer partnerships ► 1Represents 2007 estimated third party net sales 68
  69. 69. Acetate Products: execution of strategy continues to deliver earnings growth Timeframe 2004 2005 2006 2007 2008 2009 2010 ► Restructuring/Repositioning China venture tow expansions Complete Filament exit/site optimization Complete China venture flake expansion ► APL Acquisition Complete Integrate the business Capture/realize synergies ► Beyond 2008 Maximize cash generation Selective and sustainable growth Next moves: further Asia expansions 69
  70. 70. Successful revitalization and strategy progress for Acetate Products ► Significant improvement to manufacturing cost structure Consolidated manufacturing footprint to lower-cost regions Closed the Edmonton flake plant in 1Q 2007 ► Completed planned China venture expansions – more than doubled Expanded flake plant in 2Q 2007 Increased dividend flow in 2007 and 2008E ► Acquired cellulose acetate flake, tow and film business of APL – adding ~$250 million in revenue Optimized Operations and Market Focus North America North America Europe Europe China Ventures 2005 2008E 2005 2008E 2005 to 2008E Flake 4 sites 2 sites 0 sites 1 site Expanded Tow 3 sites 2 sites 1 site 2 sites Expanded Filament 2 sites Fully exited 70
  71. 71. APL Acquisition: a strategic fit Acetate Products Limited Benefits to Celanese ► Acquired ► Customers cellulose acetate flake, tow – Broadens mix and reach and film business of APL ► Integration – Enables European flake Purchase price ~$110 million production Additional $30 million for synergies ► Captive consumption - Increases downstream integration ►2 U.K. manufacturing facilities: Spondon ► Procurement ● and logistics – Network enhancements Little Heath – Closed 3Q 2007 ● ► Synergies – Full capture by 2008 Acquisition ~$20 Synergies million Manufacturing ► SG&A ► Purchased ~$20 ~$20 EBITDA million million Logistics ► 71
  72. 72. Acetate Products: optimized global manufacturing footprint Spondon, United Kingdom Lanaken, Belgium Nantong, China Narrows, Virginia Kunming, China Zhuhai, China Ocotlan, Mexico Flake Production Tow Production Only integrated producer in each region of the world 72
  73. 73. Strategically positioned for further expansion in growth regions Celanese Share of Global Acetate Tow Market Global Acetate Tow Market by Region (2007E) (2007E) 60% 60% CAGR 2005 – 2010E 2 – 3% 40% 40% 1 - 2% 20% 20% (1 – 2)% 1 - 2% 0% 0% Asia Europe Americas ROW Total 1 Asia 1 Europe Americas ROW Global Market Size: ~720kt 1Includesshare attributable to China ventures Source: Celanese estimates 73
  74. 74. Consumer Specialties: successful revitalization and continued execution of current strategy CS Operating EBITDA 2004 – 2010E Acetate Products ► revitalization Growth Objective completed in 2007 350 Full synergy capture of ► 300 APL acquisition by Asian Growth1 2008 250 European Initiative Nutrinova to offset ► $ in millions 200 price declines with volume increases North America/Europe Revitalization 150 Modest growth beyond ► 2008: 100 Acetate Base Operating EBITDA Growth in Asia 50 continues at 2-3% Nutrinova Operating EBITDA per year 0 Sustainable Operating 2004 2005 2006 2007E 2008E 2009E 2010E EBITDA 1Dividends from cost investments 74
  75. 75. Industrial Specialties: integrated technology solutions Consumer and Industrial Specialties 2007 Revenue1: $2.5 B 2007 Op. EBITDA Margin (est.): ~15% Consumer Specialties Industrial Specialties 2007 Revenue1: $1.1 B 2007 Revenue1: $1.4 B 2007 Op. EBITDA Margin (est.):~25% 2007 Op. EBITDA Margin (est.): ~8% Acetate Products Nutrinova Emulsions PVOH AT Plastics and Ventures Significant consumer of Acetyl Intermediates products ► Earnings improvement through revitalization ► Growth opportunities through continued innovation ► and globalization 1Represents 2007 estimated third party net sales 75
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