Celanese Corporation · NYSE:CE
Celanese — Q4 2006 Earnings Presentation
20 slides from Celanese's earnings presentation, Feb 6, 2007
Slide 1: Celanese 4Q 2006 Earnings Conference Call / Webcast
Celanese 4Q 2006 Earnings Conference Call / Webcast Tuesday, February 6, 2007 10:00 a.m. CT Dave Weidman, President and CEO John J. Gallagher III, Executive Vice President and CFO
Slide 2: Forward Looking Statements, Reconciliation and Use of Non-GAAP Measures to U.S. GAAP
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 ne
Slide 3: Dave Weidman, President and Chief Executive Officer
Dave Weidman President and Chief Executive Officer 3
Slide 4: Celanese Corporation Q4 and Full Year 2006 Highlights
Celanese Corporation Q4 and Full Year 2006 Highlights in $ millions 4th Qtr 2006 4th Qtr 2005 FY 2006 FY 2005 (except EPS) Net Sales 1,656 1,540 6,656 6,033 Operating Profit 185 167 747 573 Adjusted EPS $0.77 $0.60 $3.00 $2.24 Operating EBITDA 308 256 1,244 1,058 Free Cash Flow 260 108 497 489 4Q 20
Slide 5: Celanese is well positioned to capture future growth
Celanese is well positioned to capture future growth Celanese 2010 Objective: $300-$350 million EBITDA Growth Business Specific Balance Operational Asia Sheet Excellence >Nanjing >Evaluate >Productivity Complex Revitalization Innovation Organic capital improvements >Affiliates structure more than of
Slide 6: John J. Gallagher III, Executive Vice President and Chief Financial Officer
John J. Gallagher III Executive Vice President and Chief Financial Officer 6
Slide 7: Celanese Corporation Financial Highlights
Celanese Corporation Financial Highlights in $ millions (except EPS) 4th Qtr 2006 4th Qtr 2005 FY 2006 FY 2005 Net Sales 1,656 1,540 6,656 6,033 Operating Profit 185 167 747 573 Net Earnings 77 175 406 277 Special Items Other Charges/Adjustments (1) (51) 40 50 Adjusted EPS $0.77 $0.60 $3.00 $2.24 Ef
Slide 8: Chemical Products
Chemical Products in $ millions 4th Qtr 2006 FY 2006 Net Sales $1,184 up 8% $4,742 up 10% Operating EBITDA $226 up 16% $876 up 7% Fourth Quarter 2006: > Strong earnings driven by continued robust global demand for most of our product lines > Industry-wide high utilization rates continue > Significan
Slide 9: Ticona Technical Polymers
Ticona Technical Polymers in $ millions 4th Qtr 2006 FY 2006 Net Sales $224 up 5% $915 up 3% Operating EBITDA $58 up 76% $260 up 27% Fourth Quarter 2006: > Volume growth driven primarily by strong European demand > Continued penetration in key customer segments > Operating margins expanded as increa
Slide 10: Acetate Products and Performance Products
Acetate Products in $ millions 4th Qtr 2006 FY 2006 Net Sales $186 up 16% $700 up 6% Operating EBITDA $37 up 28% $151 up 76% > Revitalization continued to deliver improved Operating EBITDA > Improved pricing and volume in China Performance Products in $ millions 4th Qtr 2006 FY 2006 Net Sales $38 do
Slide 11: Strong performance continues for Equity and Cost Investments
Strong performance continues for Equity and Cost Investments • 4Q and FY 2006: Cash flow higher than earnings impact due to an increased dividend from PolyPlastics • FY 2007 Income Guidance1: Income impact similar to 2006 (~$150MM) • FY 2007 Cash Flow Guidance1: Cash flow impact similar to 2006 (~$1
Slide 12: Capitalization
Capitalization (in $millions) Dec 31, Dec 31, 2006 2005 A Strong Cash Generator Cash 791 390 Senior Credit Term Loan 1,622 1,708 Cash Flow from Operations Net Debt to EBITDA Senior Credit Revolver - - 800 3.5 Floating Rate Term Loan - - 3.0 Total Senior Debt 1,622 1,708 600 Senior Sub Notes ($) 799
Slide 13: 2007 Business Outlook
2007 Business Outlook > Continued strong global demand Chemical > Favorable pricing continues into 1Q Products > Nanjing Acetic Acid facility begins commercial production 2007 Guidance: > Increasing penetration in auto despite flat Adjusted EPS total builds Ticona $2.70 to $3.00 > Continued growth i
Slide 14: Impact from the Oxo Products and Derivatives Divestiture
Impact from the Oxo Products and Derivatives Divestiture 2006 Results 2007 Guidance Reported Pro-Forma > Including Oxo results > Including Oxo results = EPS: $3.00 = EPS: $2.90 - $3.20 = Operating EBITDA: $1,244MM = Operating EBITDA: $1,230 - $1,300MM ($0.30)/share earnings impact ($0.30)/share earn
Slide 15: Appendix
‘Y Celanese Appendix
Slide 16: Updated 2007 Guidance
Updated 2007 Guidance > Adjusted EPS = $2.70 to $3.00 > Operating EBITDA = $1,155 to $1,225 million > Capital Expenditure / Depreciation and Amortization = Approximately $280 million > Net cash interest expense = $170-$190 million > Estimated Tax Rate for Adjusted EPS of 28% 16
Slide 17: Reg G: Reconciliation of Diluted Adjusted EPS
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, (in $ millions, except per share data) 2006 2005 2006 2005 Earnings from continuing operations before tax and minorit
Slide 18: Reg G: Reconciliation of Net Debt
Reg G: Reconciliation of Net Debt Net Debt - Reconcilation of a Non-U.S. GAAP Measure December 31, December 31, (in $ millions) 2006 2005 Short-term borrowings and current installments of long-term debt - third party and affiliates 309 155 Long-term debt 3,189 3,282 Total debt 3,498 3,437 Less: Cash
Slide 19: Reg G: Reconciliation of Other Charges and Other Adjustments
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 Employee termination benefits 1 3 12 19 Plant/office closures (1) 5 (1) 20 Total restructuring - 8 11 39 Asset impairment
Slide 20: Reg G: Reconciliation of Operating EBITDA
20 Reg G: Reconciliation of Operating EBITDA 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 Chemical Products 1,184 1,096 4,742 4,