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    celanese sept_20th_china_investor_presentation_final-4 celanese sept_20th_china_investor_presentation_final-4 Presentation Transcript

    • Nanjing Chemical Complex Grand Opening Investor Presentation September 20, 2007 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 presentation. 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. Reconciliation of Non-U.S. GAAP Measures to U.S. GAAP 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. Use of Non-U.S. GAAP Financial Information § 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. 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 flows from operating activities 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 Items 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
    • An Attractive Hybrid Business Model 2006 1H2007 Revenue1 (in $ millions) $6,656 $3,111 Operating EBITDA1 (in $ millions) $1,244 $674 Adjusted EPS $3.00 $1.75 Celanese Commodity Intermediate Specialty Consumer Oil & Gas Chemicals Products Products Products • Dow* • Exxon • Dow* • Rohm & Haas* • Motorola • Eastman* • BP • Lyondell • ICI* • Toyota • PPG* • Shell • Methanex • Sherwin-Williams • FMC* • Siemens Balance of intermediate & specialty products * Celanese internal peer group 3 Includes Other Operating Segment, with Revenue of $257 and $117 and Operating EBITDA of ($111) and ($29), respectively 1
    • Balanced Global and End Use Positions Paints & Coatings Textiles Food and Beverage 14% 6% 5% Automotive Consumer 9% and Industrial 40% 35% 25% Adhesives 4% Consumer / Medical Construction Applications 8% 11% Chemical Performance Additives Industrial Applications 6% 3% Filter Media Paper & 14% Packaging Other 9% 11% Includes oxo alcohol and polyol derivative divestiture and APL acquisition 4 End use breakdown based on 2006 est. external sales revenue
    • Businesses integrated along the “acetyls” value chain Building Block Differentiated Intermediates Specialty Products Advanced Engineered Engineered Formaldehyde Plastics Materials – AEM Raw (Ticona and Materials Acetate Affiliates) Anhydride and esters Nutrinova Acetic Acid Emulsions/ Emulsions PVOH VAM AT Plastics Emulsions Acetyl Consumer and Intermediates Industrial Specialties - CIS 5
    • 2007 – 2010: Celanese Earnings Growth Strategy Celanese 2010 Objective: $300-$350 million EBITDA Growth Balance Operational Asia Business Specific Sheet Excellence Revitalization Innovation Organic $300 - $350 million improvement in EBITDA profile 6
    • Balance growth objective across all business groups 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 $300 – $350 million increased EBITDA profile plus EPS potential by 2010 7
    • Long and successful history in Asia Joint Venture Path Polyplastics Acetate Plastics venture with ventures in venture with Daicel China Mitsubishi 1964 1989 2000 2007 2008 1997 1999 Continued Acetic Acid & VAM Acid expansion in Direct Path Emulsions Nanjing Production site production in Singapore Acetyl sites in Intermediates: Nanjing, Anhydride & China VAM AEM: GUR® and Celstran® Success in Asia through strategic steps 8
    • Significant presence to date in China and the rest of Asia Japan/Fuji City Polyplastics Korea/Seoul (KEP) Nantong Fibers Company Advanced Engineered Materials Nantong (PTM Engineering Nanjing Plastics) Celanese Acetate JVs Taiwan (Polyplastics) Celanese Acetyls Kunming Fibers Company Intermediates Zhuhai Fibers Company Nanjing Complex Sales Offices Malaysia/Kuantan (Polyplastics) Singapore 9
    • Approximately 50% of earnings from the fastest growing region by 2010 2010E Regional Split 2006 Regional Split Europe Europe Revenue Revenue Asia Asia 30-35% 25% Americas Americas Europe Europe Earnings Earnings Asia Asia 45-55% ~30% Americas Americas Note: Revenue breakdown based on Celanese 2006 consolidated net sales (does not include sales from equity and cost investments). 10
    • Asia continues to increase its share of global production capacity Products 2000 2006 2009/2010E Acetic Acid1 40% 52% 59% VAM1 39% 46% 51% Acetic Anhydride1 25% 26% 34% VAE Emulsions2 6% 18% 26% GUR®3 17% 19% 27% Celstran®4 3% 6% 16% Sources: 1 Tecnon and SRI. 2 Kline and Celanese estimates. 3 Celanese estimates for capacity information in the UHMW-PE industry. 11 4 BRG Townsend, Inc., publicly available data and Celanese estimates.
    • Nanjing Complex 12
    • Nanjing: fully integrated, low cost facility Construction ► GUR® Celstran® Flare Warehouse proceeding on Unit Unit schedule Vinyl Acetate Integrated complex ► Acetic Anhydride Unit Monomer Unit Leading technologies ► Advantaged feedstock ► Acetic Utilities / Acid Tank Farm Highly capital efficient ► Unit Emulsions Complex EHS excellence ► Administration & Integrated IP ► Maintenance protection Platform for growth in Asia 13
    • Nanjing Projects: Facts and Figures 2007 2008 2009 Acetic Acid ≥ Capacity – 600 kT (expandable to 1,200 kT) ≥ AO+™ Technology Acetic Anhydride ≥ Capacity – 100 kT VAM ≥ Capacity – 300 kT ≥ Vantage Plus™ Technology Nanjing Facts ≥ Location – Nanjing City Emulsions Industrial Park (NCIP) ≥ Capacity – 60 kT • Only one of two state ≥ VAE – 48 kT approved industrial ≥ Conventional Emulsions – 12 kT parks • Total area of NCIP ~ Celstran® 45 kilometers ≥ Capacity – 4 kT ≥ ~ 19 hectares of land use (expandable to 8 kT) rights acquired GUR® ≥ Employees – 234 currently and ~300+ expected by 2009 ≥ Capacity – 16 kT (including shared services) (expandable to 32 kT) 14
    • Nanjing: Highly integrated complex with leading Celanese technologies Coal based Acetic Acid CO (AO+™) ~40% 20% ~40% M Acetic e 100% Anhydride Methanol r c Vinyl Acetate h ~90% (VAntage Plus™) a n t ~10% S Ethylene Emulsions a 100% l e s GUR® 100% Polypropylene Celstran® 100% Projected $600 - $700 million in incremental sales by 2010 15
    • Nanjing: Advantaged feedstock position with coal-based CO 1 Coal Gasification Low Cost ► Significant cost advantage > 25% advantage versus natural gas § (typical alternative feedstock) Synergies from CO and methanol co- § production Coal - water slurry Reliable ► ~50% of the 55 coal gasification units in the world are in China Redundant critical systems enhance reliability Coal gasification in China: low cost and reliable From William Preston presentation at Gasification Technologies Council in 2001 1 16
    • Nanjing: Integrated approach to protecting our IP in China Design, Engineering, & Construction Process design developed outside China ► Critical Equipment Selected equipment purchase outside China ► & Design Security check on key contractor personnel ► Hiring Policy & Practices Criteria includes company specific background ► Employment contracts with IP language ► 3-5 year bonding of critical employees ► What is IP? Operation Including Information Control Separation of jobs, limited rotation ► Selected critical lab analyses in Singapore ► Biometric access to IP sensitive areas ► Biometrics Litigation Track Record 100% success rate ► > $100 million recovery (5 lawsuits) ► 3 others pending litigation ► 17
    • Acetyls 18
    • Nanjing complex builds upon Celanese’s strong position in China Celanese will continue to remain competitive as the global leader in ► Acetic Acid Strong cost position Global presence gives customers reliability of supply Focus on growth in China and the rest of Asia Ability exists to double the capacity of both Nanjing and Singapore at a fraction of the original capital cost ► Downstream integration into VAM, Acetic Anhydride, and Esters give Celanese a unique position to supply the global market 19
    • Leading position in the acetyl value chain VAM Acetic Acid ~5MM metric tons ~10MM metric tons Others Other Celanese Celanese Kuraray 19% 29% 25% 26% 2% Showa 3% Gohsei Daicel Nanjing Nanjing 3% 3% 4% 6% BP Dairen 5% Eastman 11% DuPont 3% BP 6% Millennium Dow 23% Sinopec Lyondell Sopo 6% 8% Acetic Anhydride 7% 5% 6% Other ~2.5MM metric tons 16% Eastman Jilin 31% 4% Rhodia 5% BP 6% Daicel Celanese Nanjing 12% 22% 4% Celanese: Integrated leader in Acetyls Source: Tecnon 2006 20
    • Acetyl Intermediates: High utilization rates expected through 2009; unmatched operating cost advantage 2009E Acetic Acid Cost Curve Acetic Acid Supply-Demand Balance based on Effective Capacity (kt) 12,000 High Cost Supply 10,000 Pampa (under 8,000 review) Celanese KT 6,000 technology 4,000 Conventional MeOH /CO AO Plus™/Leading 2,000 By- Competition prod 0 2004 2005 2006E 2007E 2008E 2009E 4,000 6,000 8,000 10,000 0 12,000 2,000 Capacity Utilization1(Nov, 2006): 91% 93% 92% 91% 91% 92% High Cost Capacity Low Cost Capacity Demand 1Based on effective capacity at 90% of nameplate (Celanese estimate) Source: Celanese estimates; Available Public Data 21
    • VAM - estimated 2007-2009 global supply/demand balance VAM Global Supply / Demand Balance 7,000 Effective Capacity Demand 6,000 5,000 4,000 KT Sipchem Celanese 3,000 Saudi Nanjing 300 kta 300 kta 2,000 1,000 0 2004 2005 2006E 2007E 2008E 2009E Capacity Utilization1: 98% 97% 93% 96% 95% 95% 22 *Effective capacity at 94% of nameplate
    • Industrial Specialties 23
    • Translating Vinyl Acetate success to Asia Global Latex Emulsions Market1 2.4 1.8 Why China and Why Vinyls? Demand in China growing at ► Regional Size (B tonnes) 15% 1.3 >10% 1.4 % 22 Diverse end-market segments ► 1.2 32% 30% CAGR 36% Good value proposition versus ► % 0.7 11 competitive systems 30% 27% 26% % 25 Meets low VOC requirements ► 53% 39% 40% 36% 35% 0.0 US Europe China China 2010 Vinyls 100% acrylic Styrene acrylics 1Excludes SBR, other minor latexes & powders Sources: Kline Synthetic Latex Polymers Market Analysis Europe 2005, North America 2004 and China 2006. China 2010 data obtained from Kline and Celanese estimates. 24
    • Chinese Market offers major growth opportunities China Emulsions Market Overview China Production Volume 500 400 15% (Dry Tonnes) 300 Expected Annual Growth Rate 200 15% 100 30% 15% 0 Adhesives Coatings Construction Nonwovens Sources: Kline and SAI 25
    • Advanced Engineered Materials 26
    • Focus on High Performance Polymers and Thermoplastics Global High Performance Polymer and Engineering Thermoplastics 2006E: ~8 MM tons (2006E Growth = 6 %) € 100 / kg High Performance Polymers (HPP) € 10 / kg 4 %1 Engineering Thermoplastics (ETP) € 3 / kg Performance others = 3 % Standard Polymers 96 % PU = 6 % PET = 5 % ABS, SAN, ASA: 4 % € 1 / kg PS, EPS = 9 % PVC = 17 % PE = 34 % PP = 19 % Range of Products 1Comprising:PEEK (the top end of HPP and ETP pyramid), PA 6 & PA 66, PA 11 and PA 12, PC, POM, PBT, COPE, PET technical, PPE, COC & COP, UHMW-PE, PPS, LCP, High Performance Nylons, PEI, PES & PSU, PTFE & other fluoropolymers 27
    • Strong product portfolio Electrical Consumer #1 or Product Transportation & & Industrial Medical #2 Electronics Appliance Fortron® X X X (Polyphenylensulfide) GUR® X X X X (Ultra-high molecular weight PE) Hostaform® X X X X X (Polyacetals) Celstran® X X (Long fiber reinforced thermoplastics) Vectra® X X X X (Liquid Crystal Polymer) Celanex® X X X X (Polyester Engineering Resins) Leading position in > 80 % of sales 28
    • Continued focus on transportation penetration in China Global Vehicle Production 2006 - 2012 Advanced Engineered Materials Type of Resins China 6 2001 US Japan 12 2006E Germ any India 18 2010E South Korea 2006 Production France 40 Highest Production Growth 2006 - 2012 Current Canada Brazil China 2.5 Current Spain 0 3,000 6,000 9,000 12,000 15,000 18,000 Pounds per Vehicle Vehicle Production (units) Source: Management Estimates Source: Global Insight 29
    • Most of GUR’s Global Target Markets are Being Commercialized in Asia Fibers for Security Sheet & Profile – Applications & Abrasion Auto & Motorcycle Resistant Films Material Handling Batteries Applications Porous – Water Filtration 30
    • Appendix 31
    • Project delays continue to allow increasing demand to absorb new supply CE Investor Day 2005 Company Capacity Original Date CE Investor Day 2006 Updates Comments Fanavaran 150KT Start 2005 Rumored to have started Commercial Production in July, commissioning 2006 Wujing 200KT Start 2005 No sign of construction Construction under way; Pending Litigation; Startup expected Mid- 2007 SOPO 150KT Start 2005 Completed, explosion 3 Operational in 1Q 2006; expansion days later in July, 2006 BP/FPC 300KT Early 2005 December 2005 Commercial Production in 2Q 2006 BP/Yaraco 150KT Early 2005 Operational mid-2005 Commercial Production mid-2005 Lunan 200KT June 2005 Now commercializing Commercial Production in 1Q 2006 Daqing 200KT Late 2006 NA Expected Mid- 2007; replaces high cost capacity BP/Sinopec 500KT Start 2008 Construction not yet Construction not yet begun; begun Expected mid-2009 Sipchem 425KT Start 2008 Website states Q3 2008 Pending Litigation; Expected mid- 2009 Hualu Hengsheng 200KT 2009 Expected Late 2009 Expected Late 2009 32
    • Reg G: Reconciliation of Diluted Adjusted EPS Adjusted Earnings Per Share - Reconciliation of a Non-U.S. GAAP Measure Three Months Ended Twelve Months Ended December 31, December 31, 2006 2005 2006 2005 (in $ millions, except per share data) Earnings from continuing operations before tax and minority interests 174 664 158 374 Non-GAAP Adjustments: (1) 40 Other charges and other adjustments * (51) 50 - - - 102 Refinancing costs Adjusted earnings from continuing operations before tax and minority interests 173 704 107 526 (43) (186) Income tax provision on adjusted earnings ** (5) (106) (1) (4) Minority interests 4 (37) 4 1 Earnings from discontinued operations, net of tax and adjustments *** (5) 1 (2) (10) Preferred dividends (3) (10) Adjusted net earnings available to common shareholders 131 505 98 374 2 10 Add back: Preferred dividends 3 10 Adjusted net earnings for diluted adjusted EPS 133 101 515 384 Diluted shares (millions) 158.7 158.6 Weighted average shares outstanding 158.6 158.6 12.0 12.0 12.0 Assumed conversion of Preferred Shares 12.0 1.2 1.8 0.9 0.9 Assumed conversion of stock options 172.5 171.8 Total diluted shares 171.5 171.5 Adjusted EPS from continuing operations 0.75 0.63 2.99 2.23 Earnings per common share from discontinued operations, net of adjustments 0.02 (0.03) 0.01 0.01 Adjusted EPS 0.77 0.60 3.00 2.24 * See Slide 35 for details ** The U.S. GAAP tax rate for the three months ended December 31, 2006 is 54% and twelve months ended December 31, 2006 is 38%. The company’s adjusted tax rate for the three months ended December 31, 2006 is 25% and the resulting full year adjusted tax rate is 26%. The difference between our US GAAP taxes and our adjusted taxes are due to: (i) the favorable impact of purchase accounting on our net operating losses ($59 million); (ii) the elimination of discrete tax items not related to the current period ($6 million) and (iii) the elimination of tax related to a dividend from an equity investment not included in earnings under US GAAP ($17 million). *** Does not include gain on sale related to discontinued operations. 33
    • Reg G: Reconciliation of Diluted Adjusted EPS Adjusted Earnings Per Share - Reconciliation of a Non-U.S. GAAP Measure Three Months Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006 (in $ millions, except per share data) Earnings (loss) from continuing operations before tax and minority interests (168) 134 3 251 Non-GAAP Adjustments: 1 Other charges and other adjustments 115 37 166 61 - - Refinancing costs 256 254 Adjusted earnings from continuing operations before tax and minority interests 203 171 423 312 2 Income tax provision on adjusted earnings (57) (48) (118) (87) (1) - - Minority interests (1) Adjusted earnings from continuing operations 146 122 305 224 (3) (5) Preferred dividends (2) (5) Adjusted net earnings available to common shareholders 143 120 300 219 3 5 Add back: Preferred dividends 2 5 Adjusted net earnings for adjusted EPS 146 122 305 224 Diluted shares (millions) Weighted average shares outstanding 156.9 158.6 158.1 158.6 12.0 12.0 Assumed conversion of Preferred Shares 12.0 12.0 - 0.2 Assumed conversion of Restricted Stock 0.5 - 1.5 1.4 4.2 Assumed conversion of stock options 5.2 Total diluted shares 174.6 172.1 174.5 172.0 Adjusted EPS 0.84 0.71 1.75 1.30 1 See Slide 36 for details 2 The adjusted tax rate for the three and six months ended June 30, 2007 is 28% based on the original full year 2007 guidance. 34
    • Reg G: Reconciliation of Other Charges and Other Adjustments Other Charges: * Three Months Ended Twelve Months Ended December 31, December 31, (in $ millions) 2006 2005 2006 2005 1 12 Employee termination benefits 3 19 (1) (1) Plant/office closures 5 20 11 Total restructuring - 8 39 - - 25 Asset impairments (2) (30) (5) Insurance recoveries associated with plumbing cases (34) (1) - 4 Other 36 ** Total (2) (23) 10 66 Other Adjustments: *** Three Months Ended Twelve Months Ended December 31, December 31, (in $ millions) 2006 2005 2006 2005 Executive severance & legal costs related 2 30 to Squeeze-Out - - Favorable impact on non-operating foreign - - exchange position - (14) - - Advisor monitoring fee - 10 - - Purchase accounting for inventories (4) 12 8 12 Business Optimization - - - - Settlement of transportation-related antitrust matters (36) (36) - - Gain on disposition of Acetate properties (23) (23) - - Loss on disposition of COC business 35 35 (11) (11) Gain on disposal of investment (Pemeas) - - 2 (1) Other - - 1 (28) 30 (16) Total (1) (51) 40 50 Total other charges and other adjustments * Previously described as Special Charges ** Termination of advisor monitoring fee *** These items are included in net earnings but not included in other charges. 35
    • Reg G: Reconciliation of Other Charges and Other Adjustments Other Charges: Three Months Ended Six Months Ended June 30, June 30, (in $ millions) 2007 2006 2007 2006 Employee termination benefits 25 9 25 11 - - - Plant/office closures 2 Total restructuring 25 11 25 11 - - Insurance recoveries associated with plumbing cases (2) (3) Long-term compensation triggered by Exit Event 74 - 74 - 3 3 Asset impairments - - Ticona Kelsterbach relocation 3 - 3 - 3 - 1 Other 4 Total 105 12 106 12 Other Adjustments: 1 Three Months Ended Six Months Ended June 30, June 30, (in $ millions) 2007 2006 2007 2006 Executive severance & other costs related - 1 to Squeeze-Out 13 23 - 10 Ethylene Pipeline Exit - 3 5 Business Optimization - - 9 9 Foreign exchange loss related to refinancing transaction - - 2 Discontinued Methanol production (2) 12 31 26 - 4 Other - - 10 25 60 49 Total 115 37 166 61 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. 36
    • 37 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) 2006 2005 2006 2005 Net Sales 1,184 4,742 Chemical Products 1,096 4,299 224 915 Technical Polymers Ticona 213 887 186 700 Acetate Products 160 659 38 176 Performance Products 40 180 59 257 Other Activities * 69 144 (35) (134) Intersegment eliminations (38) (136) Total 1,656 1,540 6,656 6,033 Operating Profit (Loss) 162 637 Chemical Products 149 585 29 145 Technical Polymers Ticona (2) 60 31 106 Acetate Products 43 67 7 50 Performance Products 10 51 (44) (191) Other Activities * (33) (190) Total 185 167 747 573 Equity Earnings and Other Income/(Expense) ** 25 72 Chemical Products 36 80 13 55 Technical Polymers Ticona 11 54 - 21 Acetate Products 2 4 2 3 Performance Products 1 (1) 14 23 Other Activities * 5 13 Total 54 55 174 150 Other Charges and Other Adjustments *** 2 12 Chemical Products (38) (15) (1) (5) Technical Polymers Ticona 6 31 - - Acetate Products (24) (14) - - Performance Products - 1 (2) 33 Other Activities * 5 47 Total (1) (51) 40 50 Depreciation and Amortization Expense 37 155 Chemical Products 48 166 17 65 Technical Polymers Ticona 18 60 6 24 Acetate Products 8 29 4 15 Performance Products 3 13 6 8 24 17 Other Activities * Total 70 85 283 285 Operating EBITDA 226 876 Chemical Products 195 816 58 260 Technical Polymers Ticona 33 205 Reg G: Reconciliation of Operating EBITDA 37 151 Acetate Products 29 86 13 68 Performance Products 14 64 (26) (111) Other Activities * (15) (113) Total 308 256 1,244 1,058 * Other Activities primarily includes corporate selling, general and administrative expenses and the results from AT Plastics and captive insurance companies. ** Includes equity earnings from affiliates and other income/(expense), which is primarily dividends from cost investments. *** Excludes adjustments to minority interest, net interest, taxes, depreciation, amortization and discontinued operations.
    • 38 Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA - a Non-U.S. GAAP Measure. Three Months Ended Six Months Ended June 30, June 30, (in $ millions) 2007 2006 2007 2006 Net Sales 1,002 2,004 Chemical Products 977 1,914 257 519 Technical Polymers Ticona 230 461 235 458 Acetate Products 176 343 47 92 Performance Products 48 97 1 Other Activities 58 117 68 129 (43) (79) Intersegment eliminations (42) (67) Total 1,556 1,457 3,111 2,877 Operating Profit (Loss) 91 239 Chemical Products 130 251 32 68 Technical Polymers Ticona 38 79 29 58 Acetate Products 29 52 16 32 Performance Products 16 33 1 Other Activities (97) (120) (61) (107) Total 71 152 277 308 Equity Earnings and Other Income/(Expense) 2 18 22 Chemical Products 15 23 16 30 Technical Polymers Ticona 14 29 34 34 Acetate Products 21 21 1 1 Performance Products 1 1 1 Other Activities (2) 3 (4) (3) Total 67 47 90 71 3 Other Charges and Other Adjustments 30 76 Chemical Products 20 33 5 5 Technical Polymers Ticona (2) (4) 8 9 Acetate Products - - - - Performance Products - - 1 Other Activities 72 76 19 32 Total 115 37 166 61 Depreciation and Amortization Expense 37 71 Chemical Products 42 75 17 34 Technical Polymers Ticona 16 32 9 16 Acetate Products 5 12 4 8 Performance Products 4 8 1 12 Other Activities 6 7 12 Total 73 74 141 139 Operating EBITDA 176 408 Chemical Products 207 382 Reg G: Reconciliation of Operating EBITDA 70 137 Technical Polymers Ticona 66 136 80 117 Acetate Products 55 85 21 41 Performance Products 21 42 1 Other Activities (21) (29) (39) (66) Total 326 310 674 579 1 Other Activities primarily includes corporate selling, general and administrative expenses and the results from AT Plastics and 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.