0
Credit Suisse 16th Annual Chemical Conference
    September 26, 2007

1
Forward Looking Statements, Reconciliation and Use
    of Non-GAAP Measures to U.S. GAAP
       Forward-Looking Statements...
An Attractive Hybrid Business Model

                                                                                     ...
Balanced Global and End Market Positions

                                                                                ...
Execution…Growth…Value

    ►   Phase I : Execution – 2000 to 2006
          Execute transformation strategy

    ►   Phas...
Focus and strengthen portfolio…
         2000 to 2006
                  Portfolio Strategy
                  ►     Invest ...
Enhanced market position; reduced commodity
    exposure
                    % Revenue from Products                      ...
Significantly improved earnings profile since 2000

                                                               Operati...
Execution…Growth…Value

    ►   Phase I : Execution – 2000 to 2006
          Execute transformation strategy

    ►   Phas...
Realigning the businesses to accelerate growth

     Building Block      Differentiated Intermediates   Specialty Products...
2007 – 2010: Celanese Earnings Growth Strategy

                                            Celanese 2010 Objective:
     ...
Asia: Enhancing Celanese’s geographic lead

                                                                              ...
Consumer Specialties (CS): Acetate drives
                     earnings growth

                      Acetate Operating EB...
Industrial Specialties (IS): Optimize / revitalize for
               growth and productivity

           Vertical Integra...
AEM: Focus on High Performance
                      Polymers and Thermoplastics
                              Global High...
AEM: Increase penetration in transportation;
         volume growth / product translation in non-
         transportation
...
Acetyl Intermediates: Continue organic growth
      in excess of the market
                  Celanese Acetic Acid and Vin...
Acetyl Intermediates: High utilization rates
                      expected through 2009; unmatched operating cost
       ...
Execution…Growth…Value

     ►   Phase I : Execution – 2000 to 2006
           Execute transformation strategy

     ►   P...
Celanese Corporation Financial Highlights


                                                                    Net sales ...
2007 Business Outlook

                   ► Clear Lake impact to continue into
                     third quarter – unit r...
Well positioned for continued growth and value
     creation
                                                       Primar...
Appendix




23
Chemical Products

                                           2nd Qtr 2007    2nd Qtr 2006
            in millions
       ...
Ticona Technical Polymers
                                    2nd Qtr 2007   2nd Qtr 2006
         in millions
         Ne...
Acetate Products
                                          2nd Qtr 2007    2nd Qtr 2006
            in millions
          ...
Impact from Recent Strategic Initiatives
                                                                           2006
 ...
Share Repurchase Program Impacts

                                                                                    Actu...
Project delays continue to allow increasing
      demand to absorb new supply
                                            ...
Reg G: Reconciliation of Diluted Adjusted EPS
                                    Adjusted Earnings Per Share - Reconcilia...
Reg G: Reconciliation of Net Debt




             Net Debt - Reconcilation of a Non-U.S. GAAP Measure
                   ...
Reg G: Reconciliation of Other Charges and
     Other Adjustments
                                             Reconciliat...
33
     Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA -
      a Non-U.S. GAAP Measure.

 ...
Reg G: Reconciliation of 2000 to 2005 Operating
     EBITDA

         Total Celanese                        2000   2001   ...
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Transcript of "celanese_roadshow_august_2007final_8_28_07"

  1. 1. Credit Suisse 16th Annual Chemical Conference September 26, 2007 1
  2. 2. Forward Looking Statements, Reconciliation and Use of Non-GAAP Measures to U.S. GAAP Forward-Looking Statements 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 release, 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 three performance measures, operating EBITDA, adjusted earnings per share, and net debt 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; and for net debt is total debt. 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. § 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. 2
  3. 3. 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
  4. 4. Balanced Global and End Market Positions Paints & Coatings Food and Beverage Textiles 14% 5% 6% Automotive Consumer 9% and Industrial 40% 35% 25% Adhesives 4% Consumer / Medical Construction Applications 8% 11% Chemical Additives Performance Industrial 6% Applications 3% Filter Media Paper & Packaging 14% Other 9% 11% Notes: Includes oxo alcohol and polyol derivative divestiture and APL acquisition End use breakdown based on 2006 est. external sales revenue 4
  5. 5. Execution…Growth…Value ► Phase I : Execution – 2000 to 2006 Execute transformation strategy ► Phase II: Growth – 2007 to 2010 Celanese earnings growth strategy ► Ongoing: Value – Deliver solid financial results and shareholder value Continue to create value in excess of the peer group 5
  6. 6. Focus and strengthen portfolio… 2000 to 2006 Portfolio Strategy ► Invest in specialty businesses ► Build strength in differentiated intermediates ► Extend the acetyl chain globally ► Reduce exposure to non-differentiated, more commodity businesses ► Divest non-core business lines Acquisitions Divestitures Air Products PVOH Oxo alcohols Vectran Clariant Emulsions Polyol derivatives Emulsion Powders Vinamul Trespaphan DH Actives Acetex Nylon Estech JV APL Acrylates Emulsions Greece PBI COC Fuel Cells Total Revenue Impact1 $1.8 B ($1.8 B) 1 6 Data from the year in which the transaction occurred
  7. 7. Enhanced market position; reduced commodity exposure % Revenue from Products % Revenue from Specialty Holding #1 or #2 Position Businesses 2000 20061,2 2000 20061 ~95% Nutrinova Total Revenue $6.2 B ~70% Acetate 5%3 Total Revenue $4.9 B Ticona Nutrinova 40% 33% Acetate Ticona 31% 55% Chemical Chemical Products Products 36% Specialty Products Differentiated Intermediates Non-differentiated Intermediates 1IExcludes results from Oxo alcohol business; includes results from APL acquisition 2~95% #1 or #2 with the planned 2007 closure of all Celanese methanol production 7 3Primarily methanol and formaldehyde revenue
  8. 8. Significantly improved earnings profile since 2000 Operating EBITDA Growth1 2000 – 2006 ($MM) ~1,180 40-45 130-135 80-85 90-95 290-300 528 Cost Increase in Portfolio 2006 Proforma Baseline 2000 Volume Margin Reduction net Earnings from Optimization of Inflation Affiliates 1Includesestimates for oxo alcohol and polyol derivative divestiture and APL acquisition – Actual 2006 results were $1,244 million All numbers are based on CE estimates 8
  9. 9. Execution…Growth…Value ► Phase I : Execution – 2000 to 2006 Execute transformation strategy ► Phase II: Growth – 2007 to 2010 Celanese earnings growth strategy ► Ongoing: Value – Deliver solid financial results and shareholder value Continue to create value in excess of the peer group 9
  10. 10. Realigning the businesses to accelerate growth Building Block Differentiated Intermediates Specialty Products Advanced Engineered Engineered Engineered Formaldehyde Plastics Materials – AEM Raw Raw (Ticona) Materials Materials Acetate Acetate Anhydride and esters Nutrinova Nutrinova Acetic Acid Emulsions/ Emulsions VAM PVOH Consumer and Acetyl Industrial Intermediates Specialties - CIS 10
  11. 11. 2007 – 2010: Celanese Earnings Growth Strategy Celanese 2010 Objective: $300-$350 million EBITDA Growth Business Specific Operational Balance Asia Excellence Sheet ►Nanjing ►Productivity ►Recapitalized Revitalization Innovation Organic Complex improvements balance sheet more than offset (April 2007) ►Affiliates inflation ►Continue to and Ticona – new – ►Consumer ► ►Acetyls evaluate capital ►SG&A Industrial products and continued improvements structure Specialties applications greater than opportunities market growth in Acetic Acid and VAM $300 - $350 million improvement in EBITDA profile 11
  12. 12. Asia: Enhancing Celanese’s geographic lead 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 Approximately 50% of earnings from the fastest growing region Note: Revenue breakdown based on Celanese 2006 consolidated net sales (does not include sales from equity and cost investments). 12
  13. 13. Consumer Specialties (CS): Acetate drives earnings growth Acetate Operating EBITDA Impact 2004 – 2008E $250 h wt ro sG Acetate Revitalization ing $200 rn Ea Revitalization of North ► 0% 0 >1 American and $ MM $220 - $150 European Businesses 230MM Expansion of China ► Joint Ventures $100 Integration of Acetate ► Products Limited (APL) $50 2004 2005 2006 2007E 2008E 1 2 Acetate Seg. EBITDA JV Dividends APL Acetate Revitalization will continue to add incremental EBITDA EBITDA as reported excluding special charges, Restructuring in Operations, Other charges. 1 13 JV dividends from cost investments 2
  14. 14. Industrial Specialties (IS): Optimize / revitalize for growth and productivity Vertical Integration via Acquisition: Maximize Business Performance $200 MM to $1,050 MM 2007 2008 2009 #1 Global Vinyl Emulsions Producer Marketplace Interface Sales 2006E in MM$ Enhance customer focus ► 1,200 Revitalize innovation ► Focus on 1,000 Consolidate and streamline R&D ► Innovation functions 800 Build on capabilities in NA / Asia ► $MM 600 Operational Excellence 400 200 Capture productivity gains ► Consolidate manufacturing footprint (YE2008 ► 0 completion) / enhance production capabilities PVOH Clariant Vinamul Acquired Focus on Streamline supply chain ► ('99) ('02) ('05) business Controllables Standardize processes, redesign workflows ► base Accelerate Six Sigma ► > $50MM in incremental EBITDA opportunity by 2010 14
  15. 15. AEM: Focus on High Performance Polymers and Thermoplastics Global High Performance Polymer and Engineering Thermoplastics 2006E: ~8 MM tons (2006E Growth = 6 %) € 100 / kg € 10 / kg High Performance Polymers (HPP) 4% Engineering Thermoplastics (ETP) € 3 / kg Performance others = 3 % Standard Polymers 96 % PU = 6 % PET = 5 % ABS, SAN, ASA: 4 % € 1 / kg PVC = 17 % PS, EPS = 9 % PE = 34 % PP = 19 % Range of Products Comprising: PA 6 & PA 66, PA 11 and PA 12, PC, POM, PBT, COPE, PET technical, PPE, COC & COP, UHMW-PE, PPS, LCP, High Performance Nylons, PEEK, PEI, PES & PSU, PTFE & other fluoropolymers 15
  16. 16. AEM: Increase penetration in transportation; volume growth / product translation in non- transportation Transportation Non-Transportation Advanced Engineered Materials AEM Non-Transportation type of resins Revenue Growth in lbs per vehicle 600 2001 6 500 : 8% CAGR 400 Revenue ($MM) 12 2006E 300 18 2010E 200 100 Highest 40 Current 0 2001 2002 2003 2004 2005 2006 % Non-Automotive Revenue 47% 53% 16
  17. 17. Acetyl Intermediates: Continue organic growth in excess of the market Celanese Acetic Acid and Vinyl Acetate ► Favorable industry dynamics Normalized Growth1996-2008E 200 through 2009 180 ► Historical “market-plus” growth 160 continues 140 ► Commercial production from 120 100 Nanjing began in Q2 2007 80 $600 - $700 million increased revenues 60 from the Nanjing complex by 2010 1996 1998 2000 2002 2004 2006 2008E >$500 million from Acetyls Acetic Acid VAM GDP ► Translate vinyl-based emulsions Acetic Acid success to growing Asian market (6.3%2) Celanese: 5.1% Growth CAGR1 Market3: 4.6% VAM (5.3%2) Celanese : 4.4% Market3: 3.5% Global GDP4: 3.1% 17 11996 – 2008 annual growth 2Including the Acetex acquisition 3Source: Tecnon 4Source: CMAI
  18. 18. 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 18
  19. 19. Execution…Growth…Value ► Phase I : Execution – 2000 to 2006 Execute transformation strategy ► Phase II: Growth – 2007 to 2010 Celanese earnings growth strategy ► Ongoing: Value – Deliver solid financial results and shareholder value Continue to create value in excess of the peer group 19
  20. 20. Celanese Corporation Financial Highlights Net sales increased 7% from the prior 2nd Qtr 2nd Qtr ► in millions (except EPS) year 2007 2006 ● Nanjing startup and improved pricing partially offset reduced Net Sales $1,556 $1,457 volumes in Chemical Products related to Clear Lake Operating Profit $71 $152 ● Volume increases in Ticona GAAP Net Earnings (Loss) ($117) $103 ● Inclusion of APL sales in Acetate Products Special Items Operating profit decreased 53% due ► to other expenses related to long- $106 $37 Other Charges/Adjustments term management compensation and $265 -- Refinancing and Related Costs restructuring activities GAAP net earnings decreased to a ► Adjusted EPS $0.84 $0.71 loss on expenses related to the debt refinancing Effective Tax Rate 28% 28% Adjusted EPS up 18% to $0.84/share ► Diluted Share Basis 174.6 172.1 Operating EBITDA increased 5% to ► $326 Operating EBITDA $326 $310 20
  21. 21. 2007 Business Outlook ► Clear Lake impact to continue into third quarter – unit restarted early Chemical August Products ► Full production rates at Nanjing acetic acid facility 2007 Guidance: ► Continue >2x GDP volume growth across transportation and non- Adjusted EPS Ticona transportation end-uses $2.85 to $3.00 ► Continuing high raw material costs Operating EBITDA ► Improved earnings continue from Acetate $1,180 to $1,220 MM revitalization efforts Products Clear Lake Impact ► Integration of APL acquisition ($0.15) to ($0.25) ► Strong business fundamentals Performance continue Products ► Continued volume growth in core business 21
  22. 22. Well positioned for continued growth and 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 $300 – $350 million increased EBITDA profile plus EPS potential by 2010 22
  23. 23. Appendix 23
  24. 24. Chemical Products 2nd Qtr 2007 2nd Qtr 2006 in millions Net Sales $1,002 up 3% $977 Operating EBITDA $176 down 15% $207 Second Quarter 2007: ► Reduced volumes due to unplanned outage of Clear Lake acetic acid unit ► Successful startup of Nanjing acetic acid unit partially offset volume loss ► Sales increased due to higher pricing, currency and continued strong demand ► Pricing strength could not offset margin impact of lower volumes and higher raw material costs 24
  25. 25. Ticona Technical Polymers 2nd Qtr 2007 2nd Qtr 2006 in millions Net Sales $257 up 12% $230 Operating EBITDA $70 up 6% $66 Second Quarter 2007: ► Net sales increase driven by strong volume growth (8%) and currency effect (4%) ► Strong demand continues for all major products in Europe and Asia ► Moderate growth in North American automotive and housing applications supported by strong growth in other end markets ► Volume growth partially offset by higher raw material and energy costs 25
  26. 26. Acetate Products 2nd Qtr 2007 2nd Qtr 2006 in millions Net Sales $235 up 34% $176 Operating EBITDA $80 up 45% $55 Increased revenues attributable to inclusion of APL acquisition in Q2 ► Continued operating margin improvement with revitalization program ► Higher dividends from China ventures contributed to EBITDA improvement ► Performance Products 2nd Qtr 2007 2nd Qtr 2006 in millions Net Sales $47 down 2% $48 Operating EBITDA $21 $21 Continued volume growth in Sunett™ and favorable currency impacts did ► not fully offset decrease in non-core volumes Price reductions in line with company expectations ► 26
  27. 27. Impact from Recent Strategic Initiatives 2006 Q3 Q4 HY06 Adjusted EPS (As Reported) $0.79 $0.77 $1.56 Portfolio Enhancements: Oxo Alcohol Divestiture ($0.08) ($0.13) ($0.21) Edmonton Methanol Shut Down ($0.04) ($0.07) ($0.11) Balance Sheet Improvements: Debt Refinancing $0.04 - $0.06 $0.04 - $0.06 $0.08 - $0.12 Adjusted EPS (Comparable Basis) $0.71 - $0.73 $0.61 - $0.63 $1.32 - $1.36 Divest non-core business lines ► ● Closed sale of oxo alcohol business in Q1 2007 ● Discontinued methanol production unit in Q2 2007 Capital structure opportunities ► ● Debt refinancing completed in Q2 2007 (reduced debt by ~$113 MM and lowered interest expense by ~$10-15MM per quarter) ● Share repurchases (retired 2.4 million shares with Dutch auction and 8.5 million shares with Board authorized plan – impacts not fully realized in EPS for Q2 2007) 27
  28. 28. Share Repurchase Program Impacts Actual Common Shares Outstanding Q1 Q2 (amounts in millions) 158.7 Outstanding at 12/31/06 Weighted Average Common Shares Outstanding 159.3 156.9 1.3 Stock option exercises Convertible Preferred Stock 12.0 12.0 (7.3) Share repurchases through Q2 Stock Option Exercises 3.1 5.2 152.7 Outstanding at 6/30/07 Restricted Stock Units 0.0 0.5 (3.5) July share repurchases Weighted Average Diluted Shares Outstanding 174.4 174.6 149.2 Outstanding at 7/23/07 Share repurchase activity ► ● Dutch auction – retired 2.4 million shares for approximately $72 million ● Board authorized plan – retired a total of 8.5 million shares at ~$38.88/share (program completed as of July 23, 2007) EPS impacts not fully realized for Q2 2007 based on weighted average calculation ► 28
  29. 29. 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 29
  30. 30. 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) 3 134 251 Non-GAAP Adjustments: 1 Other charges and other adjustments 115 166 37 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) (118) (48) (87) (1) Minority interests - - (1) Adjusted earnings from continuing operations 146 122 305 224 Preferred dividends (3) (2) (5) (5) Adjusted net earnings available to common shareholders 143 120 300 219 Add back: Preferred dividends 3 2 5 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 12.0 Assumed conversion of Preferred Shares 12.0 - 0.2 Assumed conversion of Restricted Stock 0.5 - 1.5 4.2 1.4 5.2 Assumed conversion of stock options Total diluted shares 174.6 172.1 174.5 172.0 Adjusted EPS 0.84 0.71 1.75 1.30 1 See Slide 32 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. 30
  31. 31. Reg G: Reconciliation of Net Debt Net Debt - Reconcilation of a Non-U.S. GAAP Measure June 30, December 31, 2007 2006 (in $ millions) Short-term borrowings and current installments of long-term debt - third party and affiliates 187 309 3,198 Long-term debt 3,189 3,385 3,498 Total debt Less: Cash and cash equivalents 470 791 Net Debt 2,915 2,707 31
  32. 32. Reg G: Reconciliation of Other Charges and Other Adjustments 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. 32
  33. 33. 33 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 Other Charges and Other Adjustments 3 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 Reg G: Reconciliation of Operating EBITDA Operating EBITDA 176 408 Chemical Products 207 382 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.
  34. 34. Reg G: Reconciliation of 2000 to 2005 Operating EBITDA Total Celanese 2000 2001 2002 2003 2004 2005 GAAP Operating Profit 78 -470 162 133 130 561 Depreciation & Amortization 364 372 300 328 256 286 Special charges & other adjustments 27 472 -1 6 340 57 Equity earnings 18 12 23 39 37 61 Cost dividends 40 41 35 53 38 88 EBITDA as shown 528 427 519 559 801 1053 Ticona 2000 2001 2002 2003 2004 2005 GAAP Operating Profit 90 -13 23 136 19 60 Depreciation & Amortization 69 68 60 63 64 60 Special charges & other adjustments -27 -8 8 -97 67 31 Equity earnings 14 3 15 31 22 48 Cost dividends 2 2 2 2 4 5 EBITDA as shown 147 52 108 134 176 204 Performance Products 2000 2001 2002 2003 2004 2005 GAAP Operating Profit 31 35 50 -49 29 51 Depreciation & Amortization 33 28 7 8 12 13 Special charges & other adjustments 6 4 0 106 20 1 Equity earnings 0 0 0 0 1 0 Cost dividends 0 0 1 1 3 -1 EBITDA as shown 69 67 58 66 65 64 34
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