celanese investor_fact_sheet


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celanese investor_fact_sheet

  1. 1. Investor Fact Sheet Fourth Quarter 2008 Key Figures A Global Integrated Chemical Company Celanese Corporation is a leading global integrated producer of 2008 2007 2006 in $ millions chemicals and advanced materials. We are one of the world’s largest 6,823 Net sales 6,444 5,778 producers of acetyl products, which are intermediate chemicals for 440 Operating profit 748 620 nearly all major industries, as well as a leading global producer of high performance engineered polymers that are used in a variety of high- 282 Net earnings/loss 426 406 value end-use applications. Our operations are primarily located in 8,350 Number of employees (year end) 8,400 8,900 North America, Europe and Asia. Pursue. Premier. Net Sales by Region With a focused growth strategy, a performance-driven culture and a demonstrated track record of execution, we’ve made tremendous progress in our pursuit to Europe, become the premier global chemical company. Since 43% 2000, we’ve transformed Celanese into an attractive portfolio of specialty businesses with significant growth Asia, 26% Americas, potential. We will continue to execute strategies that build on the strength of our integrated structure, market 31% leadership and operational excellence to deliver **Based on Celanese 2008 consolidated net sales (does not include sales from equity and cost continued earnings growth and superior value creation investments) for our stakeholders. Our Strategy Strengthening Our Business During Challenging Economic Conditions - Expansion in Asia in all of our businesses - Innovation to deliver value-added solutions - Strong cash flow - Revitalization opportunities - Organic growth around core acetyl chain - Operational Excellence to offset inflation FOCUS ON PRODUCTIVITY, FIXED COST REDUCTIONS, AND ALIGNMENT OF MANUFACTURING CAPACITY WITH DEMAND REQUIREMENTS Our Business Segments Advanced Engineered Materials (AEM) includes our Ticona technical polymers The Consumer Specialties segment includes our Acetate Products and Nutrinova businesses and our equity affiliates. These businesses are positioned to drive volume businesses and represents 17% of Celanese’s total net sales. As specialty derivatives Advanced Engineered Materials growth at approximately two times the global gross domestic product through 2010. of acetyls, Consumer Specialties businesses have similar consumer and end-use AEM, which constitutes 15% of Celanese’s total net sales, leverages its competitive dynamics. advantage with high-quality products and services, as well as its know-how in Our Acetate Products business is one of the world’s largest producers of acetate Consumer Specialties application technologies and development. AEM products are mainly used in the tow, used in the production of filter products. The successful completion of a automotive, electronics, medical technology, industrial and consumer products strategic revitalization and the acquisition of the acetate flake, tow and film business industries. of Acetate Products Limited (APL) in 2007 further increases our global position and Ticona is intensifying its presence in Asia with its joint venture partners, while enhances our ability to service our customers. simultaneously continuing measures to increase productivity and improve cost A leading international supplier of specialty ingredients for the food, beverage and position. In 2007, we announced plans to construct a new, world-class GUR® ultra-high pharmaceutical industries, Nutrinova produces and markets the high intensity molecular weight polyethylene facility, a Celstran® long-fiber reinforced thermoplastic sweetener Sunett® (Acesulfame K) and is one of the world’s largest producers of production unit and a polymer compounding unit at our integrated chemical complex sorbates used in food preservatives. An excellent blending agent, Sunett® has in Nanjing, China. In 2008, we announced plans to build a new Vectra ® liquid crystal become a key ingredient in the growth of zero/low calorie food and beverages with polymer facility at the complex. several large, multi-national producers. Ticona focuses on innovative products, new applications and technology development formulated in close cooperation with its customers. Major Products: Major End-Use Markets: Major Products: Major End-Use Markets: acetate tow and acetate flake; filter products, beverages, engineered plastics fuel system components, conveyor sweeteners and preservatives confections, baked goods, dairy belts, electronics, safety systems, products emissions filtration, fluid handling The Industrial Specialties segment includes the emulsions, polyvinyl alcohol (PVOH), The Acetyl Intermediates segment, representing 47% of Celanese’s total net sales, and AT Plastics businesses, representing 21% of Celanese’s total net sales. We are includes acetyl products such as acetic acid, vinyl acetate monomer (VAM), acetic active in every major global industrial market and have manufacturing plants across anhydride, and other acetyl derivatives. These products are generally used as starting North America, Europe and Asia. Innovation in R&D and technical service makes us the materials for colorants, paints, adhesives, coatings, medicines and more. As an partner of choice for our customers. Our expertise in vinyl-based technology is industry leader, Acetyl Intermediates is building on its advantaged feedstock Industrial Specialties Acetyl Intermediates unsurpassed and enables us to drive value into our customers’ products. positions, leading technology, and favorable industry structure to drive growth We are a leading global producer of vinyl acetate /ethylene emulsions and a through 2010. recognized authority on low VOC (environmentally-friendly) technology. We are also a With decades of experience, advanced process technology and favorable leading global producer of a broad portfolio of polyvinyl alcohol. Our polymer production costs, we are the leading global producer of acetic acid and the world’s emulsion and PVOH products are used in a wide array of applications including paints largest producer of vinyl acetate monomer. and coatings, adhesives, building and construction, glass fiber, textiles and paper. We are expanding our strong global positions with construction of an integrated AT Plastics offers a complete line of low density polyethylene and specialty, ethylene acetyls complex in Nanjing, China. This complex brings world-class scale to one site vinyl acetate (EVA) resins and compounds used in many applications including flexible for the production of acetic acid, vinyl acetate monomer, acetic anhydride and other packaging, lamination products, hot melt adhesive, medical tubing and automotive Celanese products. parts. Our hybrid structure – a mix of intermediate and performance chemicals with the We are building a premier franchise by focusing on high-growth markets and/or strength of our integrated product chain – allows us to mitigate the impacts of regions, utilizing market-driven innovation and operational excellence. business and economic cycles. Major Products: Major End-Use Markets: Major Products: Major End-Use Markets: acetic acid, vinyl acetate and value- polyvinyl alcohol, emulsions, basic paper, building and construction, colorants, paints, adhesives, coatings added derivatives polymers textiles, paints, coatings, adhesives, packaging
  2. 2. Recent Highlights Underlying Strong Business Performance • Announced the assessment of the potential closure of acetic acid and 4th Qtr 2008 4th Qtr 2007 (in $ millions) vinyl acetate monomer (VAM) production in Pardies, France, and VAM production in Cangrejera, Mexico, as well as certain other actions the Net Sales $1,286 $1,760 company is considering. Operating Profit ($152) $324 • Released its 2008 Sustainability Report, which details the company’s Adjusted EPS ** ($0.38) $0.93 industry-leading commitment to safety, health and the environment Equity/Cost Investments Dividends $31 $26 across its worldwide operations. The report also highlights best practices driven by the company’s employees around the world. The Operating EBITDA** $68 $349 company’s 2008 global OSHA Injury Rate (OIR), or the annual number of injuries per 100 employees, was 0.26, which is among the best in Net Cash from Operating Activities* $586 $566 the chemical industry. *Three months ended December 31, 2008 and December 31, 2007. • Reached an agreement with the Frankfurt, Germany, Airport (Fraport AG) to receive an advance payment of €322 million associated with the relocation of its Ticona business in Kelsterbach, Germany. This A Strong Cash Generator advance payment will be in lieu of the payments of €200 million and €140 million originally scheduled to be paid in June 2009 and June Cash Flow from Operations Net Debt to EBITDA 2010, respectively. Cash Flow from Operations (in $ millions) 800 3.0 2.5 600 Net Debt to EBITDA 2.0 400 1.5 200 1.0 0 0.5 -200 0.0 2005 2006 2007 2008 Segment Performance Advanced Engineered Materials Consumer Specialties 4th Qtr 2008 4th Qtr 2007 4th Qtr 2008 4th Qtr 2007 (in $ millions) (in $ millions) Net Sales Net Sales $195 $253 $286 $279 Operating EBITDA** Operating EBITDA** ($3) $45 $65 $57 • Net sales decreased as positive pricing actions and improved mix could not offset • Net sales increase primarily driven by higher pricing which more than offset lower volumes and significant volume pressures unfavorable currency • Substantial reductions in U.S. and European automotive production but only modest • Easing raw material and energy costs resulted in margin expansion declines in many non-automotive applications • Operating EBITDA improvement demonstrates sustained earnings performance during challenging • Operating EBITDA loss due to lower volumes, inventory accounting impacts ($23 million) economic environment and lower affiliate earnings Industrial Specialties Acetyl Intermediates 4th Qtr 2008 4th Qtr 2007 4th Qtr 2008 4th Qtr 2007 (in $ millions) (in $ millions) Net Sales Net Sales $277 $331 $656 $1,083 Operating EBITDA** Operating EBITDA** $8 $41 $21 $231 • Net sales decrease primarily driven by lower volumes and unfavorable currency effects • Decrease in net sales due to substantial volume declines and lower pricing • Higher pricing helped to offset significant volume declines • Global recessionary trends and unprecedented inventory destocking drove decreased • Inventory accounting impacts ($15 million) and lower volumes primary reason for decrease in volumes Operating EBITDA • Lower raw material and energy costs could not offset lower volumes and inventory accounting impacts ($63 million) • Dividends from Ibn Sina contributed $29 million to Operating EBITDA **Non-U.S. GAAP measure. See reconciliation on celanese.com Celanese Corporation At A Glance Last Quarterly Dividend (2/1/09): $0.04 per share Investor Relations Transfer Agent Common Shares Outstanding (as of 12/31/08): 163.5 million Mark Oberle Computershare Investor Services Stock Performance (quarter ending 12/31/08): Celanese Corporation P.O. Box 43078 High: $26.50 Low: $7.60 Close on 12/31/08: $12.43 1601 West LBJ Freeway Providence, RI 02940-3078 Dallas, Texas 75234 1-781-575-3400 Leadership: 1-972-443-4464 David N. Weidman, Chairman and Chief Executive Officer Investor.Relations@celanese.com www.computershare.com Steven M. Sterin, Senior Vice President and Chief Financial Officer www.celanese.com