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    celanese 2008_march_lb_conference_presentation_final celanese 2008_march_lb_conference_presentation_final Presentation Transcript

    • Lehman Brothers High Yield Bond and Syndicated Loan Conference March 14, 2008 1
    • 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 two performance measures, operating EBITDA and adjusted earnings per share, 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 and for adjusted earnings per share is earnings per common share-diluted. ►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. earnings per share is a measure used by management to measure performance. It is defined as net earnings (loss) available to common ►Adjusted 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. 2
    • Who is Celanese? Superior Value Creation Strategy Industry Leader Clear focus on growth and ► value creation Geographically balanced ● global positions Culture Diversified end market Leading Global ● Strong performance exposure Integrated Producer 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 3
    • A leading global integrated producer Celanese ($ in millions) 2007 Revenue1,2: $6,444 2007 Operating EBITDA2: $1,325 Advanced Engineered Consumer and Industrial Acetyl Intermediates Materials Specialties 2007 Revenue1: 2007 Revenue: $1,030 2007 Revenue: $2,457 $2,955 2007 Operating EBITDA: $252 2007 Operating EBITDA: $393 2007 Operating EBITDA: $762 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 1Represents Net Sales 2Total 2007Revenue and Operating EBITDA includes Other Activities of $2 and ($82), respectively 4
    • Geographically balanced global positions and diversified end market exposure Paints & Coatings Textiles Food & Beverage 15% 6% 5% Automotive Consumer & Industrial 9% 29% 43% 28% Adhesives 4% Consumer & Medical Construction Applications 7% 11% Chemical Performance Additives Industrial Applications 5% 4% Filter Media Paper & Packaging 16% Other 8% 10% Geographic breakdown based on 2007 Net Sales (by destination) 5 End market breakdown based on 2007 estimated Gross Sales
    • 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 6
    • 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 7
    • Today’s portfolio: more resilient and less volatile Operating EBITDA Margin Current portfolio provides overall ► 25% higher level of earnings 21% 20% Historic view with today’s ► 19% 19% 20% portfolio reflects significantly less 17% 19% volatility 16% 15% 15% 17% Current portfolio range: 15% - 21% 15% 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 2007 As Reported Pro Forma for Current Portfolio 8
    • Committed to delivering value creation Primary Growth Focus Balance Operational EBITDA Group Asia Revitalization Innovation Organic Sheet Excellence Impact Consumer and EPS Operating EBITDA Industrial X X X X >$100MM Specialties Advanced Engineered X X X X >$100MM Materials Acetyl X X X >$100MM Intermediates Celanese Incremental X X Corporate EPS $350 – $400 million increased EBITDA profile plus EPS potential by 2010 9
    • 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 10
    • Strong cash flow generation continues Adjusted Free Cash Flow1 Strong operating results ► 500 - 550 456 Lower cash taxes 385 ► $ in millions Working capital ► productivity 2008 estimate excludes ► Kelsterbach relocation 2006 2007 2008E Decrease in overall ► Operating EBITDA/Net Interest borrowing costs since 7x 8.0% Borrowing Rate 2005 6.5x 6x 6.1x Continued improvement in 5x ► 4.5x 4x interest coverage ratio 3.9x 3x Improved capital flexibility ► 2x 6.9% 1x 0x 2005 2006 2007 2008E 1 Adjustedfree cash flow calculated as cash flow from operations less capital expenditures less other productive asset purchases less operating 11 cash from discontinued operations plus certain other charges
    • 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 12
    • AEM: 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 13
    • AEM: broad range of end-use applications to targeted niches Revenue by End-Use 2007 ~ $1 billion Medical 6% Transportation 45% Other 3% ● Fuel systems ● Drug delivery systems ● Safety systems ● Medical implants ● Mechanical components Alternate Fabrication 11% Electrical & Electronics 11% Consumer & Appliance Industrial 14% 10% ● Emissions filtration ● Textiles ● Communication systems ● LED lighting ● Connectors ● Water purification ● Fluid handling ● Durable household goods ● Gearing ● Bakeware 14
    • AEM: 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 15
    • CS: 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 Nutrinova to offset European Initiative ► $ in millions price declines with 200 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 2007 2008E 2009E 2010E EBITDA 1Dividends from cost investments 16
    • IS: technology enhancements open $1.0 billion of new opportunities Global Vinyl Emulsions Applications Driving 2010 Growth 2010E Growth 4.0 Applications Application >25% Rate Sales ($MM) ~30% 3.0 $ in billions ~25% Low VOC and nano $400 – $500 10+% increase in paints 2.0 vinyl space Engineered $200 – $300 3% - 5% fabrics/glass fiber 1.0 Enviro-friendly $100 – $200 8% adhesives 0.0 2006 2010E China building/ $100 – $200 30+% construction Others Celanese $1.0 billion expansion = >$250 million in revenue 17
    • IS: current regulatory trends in U.S. create new opportunities for VAE VOC Regulatory Trends for European Interior Paint European VAE Success Flat to Semi-Gloss Paints Industry Development 50% VAE Share of Interior 1999 US VOC grams/liter EU VOC parts/liter VOC (g/L): 250 – 380 Paints VOC Content 2004 VOC (g/L): 100 – 150 0% European 1996 2006 2010E Standard Celanese Others 1990 2006 1999 2008 Current trends in U.S. following European precedent ► ► In 2008, Southern California will further restrict emission requirements in paints ► Today, less than 25% of the interior paints meet the contemplated guidelines $100 - $2001 per ton estimated cost for non-VAE emulsions to achieve standard ► U.S. interior paint opportunity ~$1.0 billion VAE provides favorable substitution for low-VOC requirements 1Based on Celanese estimates 18
    • AI: advantaged operating costs and favorable supply/demand continues through 2010 2010E Acetic Acid Cost Curve (kt) Acetic Acid Supply/Demand Balance (based on nameplate capacity) High Cost 12,000 Ethylene Low Cost High Cost Supply Demand Ethanol 10,000 8,000 Celanese Conventional Technology kt 6,000 MeOH/CO AOPlus™/Leading 4,000 Competition 2,000 By- prod 0 2004 2005 2006 2007E 2008E 2009E 2010E Utilization of 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Effective Capacity1(11/07 ): 91% 93% 92% 94% 93% 91% 91% 12008E-2010E effective utilization based on external analysis assumptions Source: Celanese estimates, available public data 19
    • AI: continued earnings stability ► Southern Increasing Ethylene Costs ($US/ton)1 Chemical 1,500 contract Stable Acetyl Intermediates Operating 1,400 EBITDA Margin 1,300 ► Advantaged 1,200 European 1,100 methanol Operating EBITDA as a % of Revenues 1,000 30% 900 ► Producer-type 800 ethylene 700 economics 600 20% Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007E ► Significant captive Volatile Methanol Prices ($US/ton)1 product 10% 800 consumption 700 ► Ibn Sina 600 dividends 0% 500 ► Select Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 400 05 05 05 05 06 06 06 06 07 07 07 07 formula-based 300 pricing Operating EBITDA as a % of Revenues 200 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007E Rolling Four-quarter Average ► Coal-based North America West Europe Asia Average CO in Nanjing 1Source: CMAI 20
    • Recent initiatives to support growth beyond 2010 Recent Actions Direct to China ► Announced plans to add polymer compounding unit to the Nanjing Complex Advanced Commissioned start-up of Nanjing Celstran® unit Engineered Materials Kelsterbach relocation ► Announced 40% capacity expansion at new European POM facility Signed an agreement with Wison to double ► Nanjing CO supply increasing reliability and supporting future expansion Acetyl Announced agreement with SWRI, a leading Intermediates ► Chinese technology institute, to acquire technology licensing rights and development capabilities Recently announced authorization for $400 million share repurchase 21
    • Appendix 22
    • Delays continue to be common for acetyl projects Company Capacity 2005 2006 2007 2008 2009 2010 300kt BP/FPC SU A X 150kt BP / Yaraco A X SU 200kt Wujing A X X SU 150kt Sopo A X SU 150kt Fanavaran A X SU 200kt Lunan Cathay X SU A 500kt Cancelled Acetex (Tasnee) A 600kt Celanese Nanjing (Phase 1) X SU A X 550kt BP / Sinopec A X X X 425kt Sipchem A X X X 200kt Daqing A X SU 200kt Hualu Hensheng X A 350kt Lunan Cathay (expansion) A X 600kt Sopo (expansion) A X 200kt Tianjin Bohei A X Company announced startup CE 2005 update CE 2006 update CE 2007 update A X = Project delay SU = Actual plant startup 23
    • 2008 business outlook (updated on February 5, 2008) Volume growth >2x GDP across both transportation ► and non-transportation applications Advanced ► Continued high energy and raw material costs Engineered expected to pressure margins 2008 Guidance: Materials ► Significant progress expected in Nanjing production capabilities Adjusted EPS $3.40 to $3.70 Synergy capture from APL integration ► Consumer ► Strong underlying business fundamentals Specialties Operating EBITDA High raw material costs continue ► Industrial $1,290 to $1,360 million ► Realize benefits from revitalization efforts Specialties Forecasted 2008 Continued strong global demand ► adjusted tax rate of ► Incremental acetic acid volume 26% associated with China expansion Acetyl ► VAM and acetic anhydride production scheduled to Intermediates begin in Nanjing ► Prices expected to adjust in 2008 24
    • Strong financial performance in 2007 4th Qtr 2007 4th Qtr 2006 $ in millions (except EPS) FY 2007 FY 2006 Sales 1,430 5,778 1,760 6,444 Operating Profit 140 620 324 748 Net Earnings 77 406 214 426 Other Charges/Adjustments 15 92 (93) 113 Adjusted EPS $0.61 $2.62 $0.93 $3.42 Operating EBITDA 269 1,144 349 1,325 25
    • Advanced Engineered Materials 4th Qtr 4th Qtr FY FY in millions 2007 2006 2007 2006 Net Sales $224 $915 $253 $1,030 Operating EBITDA $58 $260 $45 $252 Fourth Quarter 2007: ► Net sales increase driven primarily by strong volume growth (8%) and positive currency effects (6%) ► Higher raw material and energy costs and lower pricing due to product mix more than offset volume growth ► Overall lower earnings from equity affiliates and continued high input cost pressures drove decreased Operating EBITDA 26
    • Consumer Specialties 4th Qtr 4th Qtr FY FY in millions 2007 2006 2007 2006 Net Sales $224 $876 $279 $1,111 Operating EBITDA $53 $228 $57 $274 Fourth Quarter 2007: ► Increase in net sales for the quarter primarily the result of $62 million contribution from APL ► Operating EBITDA improvement driven by higher overall volumes and pricing as well as incremental earnings from APL 27
    • Industrial Specialties 4th Qtr 4th Qtr FY FY in millions 2007 2006 2007 2006 Net Sales $309 $1,281 $331 $1,346 Operating EBITDA $25 $118 $41 $119 Fourth Quarter 2007: ► Increase in net sales primarily driven by favorable pricing and currency effects ► Higher pricing on strong demand offset raw material cost pressures contributing to improved Operating EBITDA for the quarter 28
    • Acetyl Intermediates 4th Qtr 4th Qtr FY FY in millions 2007 2006 2007 2006 Net Sales $831 $3,615 $3,351 $1,083 Operating EBITDA $169 $672 $231 $762 Fourth Quarter 2007: ► Higher pricing, additional volumes from Nanjing unit and favorable currency effects drove record sales ► Favorable supply/demand economics, industry production outages and strong demand sustained higher pricing for acetic acid and VAM ► Operating EBITDA includes increased dividends from the Ibn Sina cost affiliate 29
    • Reg G: Reconciliation of Adjusted EPS Adjusted Earnings Per Share - Reconciliation of a Non-U.S. GAAP Measure Three Months Ended Twelve Months Ended December 31, December 31, 2007 2006 2007 2006 (in $ millions, except per share data) Earnings from continuing operations 125 526 before tax and minority interests 313 447 Non-GAAP Adjustments: 1 Other charges and other adjustments 15 92 (93) 113 - - Refinancing costs - 254 Adjusted earnings from continuing operations 140 618 before tax and minority interests 220 814 2 Income tax provision on adjusted earnings (35) (163) (62) (228) (1) Minority interests (4) (1) (1) Adjusted earnings from continuing operations 157 104 585 451 Preferred dividends (2) (10) (3) (10) Adjusted net earnings available to common shareholders 154 102 575 441 Add back: Preferred dividends 2 10 3 10 Adjusted net earnings for adjusted EPS 157 104 585 451 Diluted shares (millions) Weighted average shares outstanding 158.7 158.6 151.7 154.5 12.0 Assumed conversion of Preferred Shares 12.0 12.0 12.0 - Assumed conversion of Restricted Stock - 0.4 0.6 1.8 1.2 Assumed conversion of stock options 4.3 4.3 Total diluted shares 172.5 171.8 168.6 171.2 Adjusted EPS 0.93 0.61 3.42 2.62 1 See Table 7 for details 2 The adjusted tax rate for the three and twelve months ended December 31, 2007 is 28% based on the original full year 2007 guidance. 30
    • Reg G: Other Charges and Other Adjustments Other Charges and Other Adjustments Other Charges: Three Months Ended Twelve Months Ended December 31, December 31, (in $ millions) 2007 2006 2007 2006 Employee termination benefits 1 12 5 32 (1) Plant/office closures (1) 11 7 Insurance recoveries associated with plumbing cases (2) (5) (2) (4) Insurance recoveries associated with Clear Lake, Texas - - (40) (40) Resolution of commercial disputes with a vendor - - (31) (31) Deferred compensation triggered by Exit Event - - - 74 Asset impairments - - - 9 Ticona Kelsterbach plant relocation - - 1 5 - Other 4 - 2 Total (60) (2) 58 10 Other Adjustments: 1 Three Months Ended Twelve Months Ended December 31, December 31, (in $ millions) 2007 2006 2007 2006 Executive severance & other costs related to Squeeze-Out 2 30 - - Ethylene pipeline exit costs - - - 10 Business optimization 8 12 8 18 Foreign exchange loss related to refinancing transaction - - - 22 Loss on AT Plastics films sale - - - 7 2 Discontinued methanol production 16 52 - 31 Gain on disposal of investment (Pemeas) (11) (11) - - Gain on Edmonton sale - - (34) (34) Other 2 (1) (7) 1 (33) 17 55 82 Total (93) 15 113 92 Total other charges and other adjustments 1 These items are included in net earnings but not included in other charges. 2 Adjusted earnings per share included earnings from its discontinued methanol production which was included in the company's 2007 guidance. 31
    • 32 Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA - a Non-U.S. GAAP Measure Three Months Ended Twelve Months Ended December 31, December 31, (in $ millions) 2007 2006 2007 2006 Net Sales 253 1,030 Advanced Engineered Materials 224 915 279 1,111 Consumer Specialties 224 876 EBITDA 331 1,346 Industrial Specialties 309 1,281 1,083 3,615 Acetyl Intermediates 831 3,351 1 Other Activities - 2 6 22 (186) (660) Intersegment eliminations (164) (667) Total 1,760 1,430 6,444 5,778 Operating Profit (Loss) 30 133 Advanced Engineered Materials 29 145 69 199 Consumer Specialties 41 165 26 28 Industrial Specialties 9 44 276 616 Acetyl Intermediates 107 456 1 Other Activities (77) (228) (46) (190) Total 324 140 748 620 Equity Earnings and Other Income/(Expense) 2 7 55 Advanced Engineered Materials 13 55 3 40 Consumer Specialties 2 24 - - Industrial Specialties - (1) 27 78 Acetyl Intermediates 23 63 1 Other Activities 8 - 12 22 Total 45 50 173 163 Other Charges and Other Adjustments 3 (10) (5) Advanced Engineered Materials (1) (5) (27) (16) Consumer Specialties - - (1) 32 Industrial Specialties 2 16 (97) (38) Acetyl Intermediates 16 52 1 Other Activities 42 140 (2) 29 Total (93) 15 113 92 Depreciation and Amortization Expense 18 69 Advanced Engineered Materials 17 65 12 51 Consumer Specialties 10 39 Reg G: Reconciliation of Operating 16 59 Industrial Specialties 14 59 25 106 Acetyl Intermediates 23 101 1 Other Activities - 5 6 2 Total 73 64 291 269 Operating EBITDA 45 252 Advanced Engineered Materials 58 260 57 274 Consumer Specialties 53 228 41 119 Industrial Specialties 25 118 231 762 Acetyl Intermediates 169 672 1 Other Activities (25) (82) (36) (134) Total 349 269 1,325 1,144 1 Other Activities primarily includes corporate selling, general and administrative expenses and the results from captive insurance companies. The 2007 Operating Profit (Loss) and Other Charges and Other Adjustments amounts include deductible associated with insurance recovery. 2 Includes equity earnings from affiliates, dividends from cost investments and other income/(expense). 3 Excludes adjustments to minority interest, net interest, taxes, depreciation, amortization and discontinued operations (See Table 7).
    • 33 Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA - a Non-U.S. GAAP Measure. Three Months Ended Nine Months Ended September 30, September 30, (in $ millions) 2007 2006 2007 2006 Net Sales 258 777 Advanced Engineered Materials 230 691 282 832 Consumer Specialties 213 652 314 1,015 Industrial Specialties 335 972 EBITDA 859 2,532 Acetyl Intermediates 872 2,520 1 Other Activities 6 2 5 16 (146) (474) Intersegment eliminations (184) (503) Total 1,573 1,471 4,684 4,348 Operating Profit (Loss) 35 103 Advanced Engineered Materials 37 116 34 130 Consumer Specialties 35 124 (9) 2 Industrial Specialties 17 35 117 340 Acetyl Intermediates 126 349 1 Other Activities (30) (151) (43) (144) Total 147 172 424 480 Equity Earnings and Other Income/(Expense) 2 18 48 Advanced Engineered Materials 14 42 2 37 Consumer Specialties - 22 - - Industrial Specialties - (1) 28 51 Acetyl Intermediates 18 40 1 Other Activities (10) (8) 10 10 Total 38 42 128 113 Other Charges and Other Adjustments 3 - 5 Advanced Engineered Materials - (4) 2 11 Consumer Specialties - - 14 33 Industrial Specialties 3 14 2 59 Acetyl Intermediates 10 36 1 Other Activities 22 98 3 31 Total 40 16 206 77 Depreciation and Amortization Expense 17 51 Advanced Engineered Materials 16 48 Reg G: Reconciliation of Operating 15 39 Consumer Specialties 9 29 13 43 Industrial Specialties 16 45 31 81 Acetyl Intermediates 23 78 1 Other Activities 2 5 4 1 Total 77 66 218 205 Operating EBITDA 70 207 Advanced Engineered Materials 67 202 53 217 Consumer Specialties 44 175 18 78 Industrial Specialties 36 93 178 531 Acetyl Intermediates 177 503 1 Other Activities (17) (57) (28) (98) Total 302 296 976 875 1 Other Activities primarily includes corporate selling, general and administrative expenses and the results from captive insurance companies. 2 Includes equity earnings from affiliates, dividends from cost investments and other income/(expense) 3 Excludes adjustments to minority interest, net interest, taxes, depreciation, amortization and discontinued operations.
    • 34 Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA - a Non-U.S. GAAP Measure - Unaudited Three Months Ended Twelve Months Ended March 31, June 30, September 30, December 31, December 31, (in $ millions) 2005 2005 2005 2005 2005 Net Sales 239 223 212 213 887 Advanced Engineered Materials 212 219 208 200 839 Consumer Specialties 206 263 305 286 1,060 Industrial Specialties EBITDA 690 707 731 783 2,911 Acetyl Intermediates 1 Other Activities 12 8 6 6 32 (95) (99) (113) (153) (460) Intersegment eliminations Total 1,264 1,321 1,349 1,335 5,269 Operating Profit (Loss) 39 5 18 (2) 60 Advanced Engineered Materials 24 27 21 56 128 Consumer Specialties - 5 5 (14) (4) Industrial Specialties 143 121 76 146 486 Acetyl Intermediates 1 Other Activities (83) (33) (38) (30) (184) Total 123 125 82 156 486 Equity Earnings and Other Income/(Expense) 2 12 16 15 11 54 Advanced Engineered Materials - 2 (2) 3 3 Consumer Specialties - - - - - Industrial Specialties 12 (10) 32 35 69 Acetyl Intermediates 1 Other Activities (8) 18 (2) 5 13 Total 16 26 43 54 139 Other Charges and Other Adjustments 3 1 20 4 6 31 Advanced Engineered Materials 1 - 10 (24) (13) Consumer Specialties - 2 8 1 11 Industrial Specialties 19 11 15 (30) 15 Acetyl Intermediates 1 Other Activities 45 (10) 2 3 40 Total 66 23 39 (44) 84 Depreciation and Amortization Expense 15 14 13 18 60 Advanced Engineered Materials 12 12 7 11 42 Consumer Specialties 12 11 7 17 47 Industrial Specialties 17 24 35 34 110 Acetyl Intermediates 1 Other Activities Reg G: Reconciliation of Operating 2 2 4 1 9 Total 58 63 66 81 268 Operating EBITDA* 67 55 50 33 205 Advanced Engineered Materials 37 41 36 46 160 Consumer Specialties 12 18 20 4 54 Industrial Specialties 191 146 158 185 680 Acetyl Intermediates 1 Other Activities (44) (23) (34) (21) (122) Total 263 237 230 247 977 *Quarterly earnings for the discontinued Edmonton Methanol 18 10 4 3 35 operations have been included in Other Charges and Other Adjustments. Oxo Alcohol Divestiture 22 28 22 9 81 Total Operating EBITDA - as reported 285 265 252 256 1,058 1 Other Activities primarily includes corporate selling, general and administrative expenses and the results from captive insurance companies. 2 Includes equity earnings from affiliates, dividends from cost investments and other income/(expense). 3 Excludes adjustments to minority interest, net interest, taxes, depreciation, amortization and discontinued operations.
    • 35 Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA - a Non-U.S. GAAP Measure - Unaudited Three Months Ended Twelve Months Ended March 31, June 30, September 30, December 31, December 31, (in $ millions) 2006 2006 2006 2006 2006 Net Sales 231 230 230 224 915 Advanced Engineered Materials 216 223 213 224 876 Consumer Specialties EBITDA 311 326 335 309 1,281 Industrial Specialties 809 839 872 831 3,351 Acetyl Intermediates 1 Other Activities 5 6 5 6 22 (152) (167) (184) (164) (667) Intersegment eliminations Total 1,420 1,457 1,471 1,430 5,778 Operating Profit (Loss) 41 38 37 29 145 Advanced Engineered Materials 42 47 35 41 165 Consumer Specialties 15 3 17 9 44 Industrial Specialties 103 120 126 107 456 Acetyl Intermediates 1 Other Activities (45) (56) (43) (46) (190) Total 156 152 172 140 620 Equity Earnings and Other Income/(Expense) 2 14 14 14 13 55 Advanced Engineered Materials - 22 - 2 24 Consumer Specialties - (1) - - (1) Industrial Specialties 7 15 18 23 63 Acetyl Intermediates 1 Other Activities 3 (3) 10 12 22 Total 24 47 42 50 163 Other Charges and Other Adjustments 3 (2) (2) - (1) (5) Advanced Engineered Materials - - - - - Consumer Specialties 1 10 3 2 16 Industrial Specialties 12 14 10 16 52 Acetyl Intermediates 1 Other Activities 13 15 3 (2) 29 Total 24 37 16 15 92 Depreciation and Amortization Expense 16 16 16 17 65 Advanced Engineered Materials 11 9 9 10 39 Consumer Specialties 14 15 16 14 59 Industrial Specialties 23 32 23 23 101 Acetyl Intermediates 1 Other Activities 1 2 2 - 5 Reg G: Reconciliation of Operating Total 65 74 66 64 269 Operating EBITDA* 69 66 67 58 260 Advanced Engineered Materials 53 78 44 53 228 Consumer Specialties 30 27 36 25 118 Industrial Specialties 145 181 177 169 672 Acetyl Intermediates 1 Other Activities (28) (42) (28) (36) (134) Total 269 310 296 269 1,144 14 12 10 16 52 *Quarterly earnings for the discontinued Edmonton Methanol operations have been included in Other Charges and Other Adjustments. Oxo Alcohol Divestiture** - - 26 39 65 Total Operating EBITDA - as reported 269 310 322 308 1,209 **For comparative purposes. The Oxo Alcohol Divestiture was reflected as a discontinued operation for the three months ended March 31, 2006 and June 30, 2006 in conjunction with reporting the results for the first and second quarter of 2007. 1 Other Activities primarily includes corporate selling, general and administrative expenses and the results from captive insurance companies. 2 Includes equity earnings from affiliates, dividends from cost investments and other income/(expense). 3 Excludes adjustments to minority interest, net interest, taxes, depreciation, amortization and discontinued operations.
    • Reg G: Reconciliation of 2000 – 2006 Operating EBITDA 1 1 2005 2006 Total Celanese 2000 2001 2002 2003 2004 GAAP Operating Profit 78 (470) 162 133 130 573 747 Depreciation & Amortization 364 372 300 328 256 285 283 Other Charges & Other Adjustments 27 472 (1) 6 340 50 40 Equity Earnings and Other Income/(Expense) 58 58 58 92 75 150 174 Operating EBITDA 528 432 519 559 801 1,058 1,244 Net Sales 4,888 4,537 4,535 5,133 5,069 6,070 6,656 Operating EBITDA Margin 11% 10% 11% 11% 16% 17% 19% Portfolio Adjustment 5% 5% 4% 6% 3% 3% 0% Pro Forma EBITDA Margin for Current Portfolio 16% 15% 15% 17% 19% 20% 19% 1 Amounts as reported in the 4Q 2006 earnings release 36