Slide 1: Celanese 4Q 2007 Earnings Conference Call / Webcast
Dave Weidman, Chairman and CEO Steven Sterin, Senior Vice President and CFO Celanese 4Q 2007 Earnings Conference Call / Webcast Tuesday, February 5, 2008 10:00 a.m. ET 1
Slide 2: Forward Looking Statements, Reconciliation and Use of Non-GAAP Measures
Forward Looking Statements, Reconciliation and Use of Non- GAAP Measures to U.S. GAAP 2 Forward - - Looking Statements This presentation may contain "forward - - looking statements," which include information concerning the company's plans, objectives, goals, strategies, future revenues or performan
Slide 3: Dave Weidman, Chairman and Chief Executive Officer
Dave Weidman Chairman and Chief Executive Officer 3
Slide 4: Celanese Corporation 4Q and Full Year 2007 Highlights
Celanese Corporation 4Q and Full Year 2007 Highlights in millions (except EPS) 4th Qtr 2007 4th Qtr 2006 FY 2007 FY 2006 Net Sales $1,760 $1,430 $6,444 $5,778 Operating Profit $324 $140 $748 $620 Adjusted EPS $0.93 $0.61 $3.42 $2.62 Operating EBITDA $349 $269 $1,325 $1,144 Note: All figures exclude
Slide 5: 2008 Business Outlook
2008 Business Outlook Continued strong global demand Incremental acetic acid volume associated with China expansion VAM and acetic anhydride production scheduled to begin in Nanjing Prices expected to adjust in 2008 Acetyl Intermediates Volume growth >2x GDP across both transportation and non-transp
Slide 6: Committed to Delivering Value Creation
Committed to Delivering Value Creation $350 - $400 million increased EBITDA profile plus EPS potential by 2010 Group Asia Revitalization Innovation Organic Balance Sheet Operational Excellence EBITDA Impact Consumer and Industrial Specialties X X X X >$100MM Advanced Engineered Materials X X X X >$1
Slide 7: Steven Sterin, Senior Vice President and CFO
Steven Sterin Senior Vice President and CFO 7
Slide 8: Celanese Corporation Financial Highlights
Celanese Corporation Financial Highlights in millions (except EPS) 4th Qtr 2007 4th Qtr 2006 FY 2007 FY 2006 Net Sales $1,760 $1,430 $6,444 $5,778 Operating Profit $324 $140 $748 $620 Net Earnings $214 $77 $426 $406 Special Items Other Charges/Adjustments ($93) $15 $113 $92 Adjusted EPS $0.93 $0.61
Slide 9: Advanced Engineered Materials
in millions 4th Qtr 2007 4th Qtr 2006 FY 2007 FY 2006 Net Sales $253 $224 $1,030 $915 Operating EBITDA $45 $58 $252 $260 Advanced Engineered Materials Fourth Quarter 2007: Net sales increase driven primarily by strong volume growth (8%) and positive currency effects (6%) Higher raw material and ener
Slide 10: Consumer Specialties
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 Consumer Specialties in millions 4th Qtr 2007 4th Qtr 2006 FY 2007 F
Slide 11: Industrial Specialties
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 Industrial Specialties in millions 4th Qtr 2007 4th Qtr 2006 FY 2007 FY 2
Slide 12: Acetyl Intermediates
Acetyl Intermediates in millions 4th Qtr 2007 4th Qtr 2006 FY 2007 FY 2006 Net Sales $1,083 $831 $3,615 $3,351 Operating EBITDA $231 $169 $762 $672 Fourth Quarter 2007: Higher pricing, additional volumes from Nanjing unit and favorable currency effects drove record sales Favorable supply/demand econ
Slide 13: Affiliates Continue to Deliver Value
4Q 2006 4Q 2007 FY 2006 FY 2007 4Q 2006 4Q 2007 FY 2006 FY 2007 Earnings - Equity Investments 23 17 76 82 Dividends - Cost Investments 17 23 79 116 4Q 2007: Earnings impact relatively flat for the period; Decreased cash flows due to special dividend from Polyplastics in 4Q 2006 FY 2007: Increased ea
Slide 14: Continued Strong Cash Generation
Continued Strong Cash Generation Adjusted Free Cash Flow Adjusted Free Cash Flow Adjusted Free Cash Flow in millions FY 2007 FY 2006 Net cash provided by operating activities $566 $751 Adjustments to operating cash for discontinued operations $84 ($10) Net cash provided by operating activities from
Slide 15: 2008 Guidance
2008 Guidance Affiliate Income1 $175 - $185 million Net Interest2 $200 - $210 million Depreciation and Amortization $300 - $310 million Share Count 169 million Estimated Adjusted Tax Rate for Adjusted EPS 26% Cash Taxes $100 - $120 million Capital Expenditure $280 - $300 million 2008 Updated Guidanc
Slide 16: Appendix
® Celanese Appendix
Slide 17: 4Q 2007 Other Charges and Other Adjustments by Segment
4Q 2007 Other Charges and Other Adjustments by Segment in millions AEM CS IS AI Other Total Employee termination benefits - - $1 $4 - $5 Plant/office closures - - $2 $5 - $7 Insurance recoveries associated with plumbing cases ($2) - - - - ($2) Insurance recoveries associated with Clear Lake - ($5) (
Slide 18: Reg G: Reconciliation of Adjusted EPS
Reg G: Reconciliation of Adjusted EPS 18 (in $ millions, except per share data) 2007 2006 2007 2006 Earnings from continuing operations before tax and minority interests 313 125 447 526 Non-GAAP Adjustments: Other charges and other adjustments 1 (93) 15 113 92 Refinancing costs - - - 254 - Adjusted
Slide 19: Reg G: Reconciliation of Net Debt
Reg G: Reconciliation of Net Debt 19 Net Debt - Reconciliation of a Non-U.S. GAAP Measure December 31, December 31, (in $ millions) 2007 2006 Short-term borrowings and current installments of long-term debt - third party and affiliates 272 309 Long-term debt 3,284 3,189 Total debt 3,556 3,498 Less:
Slide 20: Reg G: Other Charges and Other Adjustments
Reg G: Other Charges and Other Adjustments 20 Other Charges: (in $ millions) 2007 2006 2007 2006 Employee termination benefits 5 1 32 12 Plant/office closures 7 (1) 11 (1) Insurance recoveries associated with plumbing cases (2) (2) (4) (5) Insurance recoveries associated with Clear Lake, Texas (40)
Slide 21: Reg G: Reconciliation of Operating EBITDA
Reg G: Reconciliation of Operating EBITDA 21 Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA - a Non-U.S. GAAP Measure (in $ millions) 2007 2006 2007 2006 Net Sales Advanced Engineered Materials 253 224 1,030 915 Consumer Specialties 279 224 1,111 876 Industrial Specia
Slide 22: Reg G: Equity Affiliate Preliminary Results and Proportional Share
Reg G: Equity Affiliate Preliminary Results and Celanese Proportional Share - Unaudited 22 1 Ticona Affiliates includes PolyPlastics (45% ownership), Korean Engineering Plastics (50%) and Fortron Industries(50%) 2 Infraserv includes Infraserv Entities valued as equity investments (Infraserv Hochst G