Celanese Corporation · NYSE:CE

Celanese — Investor Day (November 2015)

29 slides from Celanese's investor day presentation, Nov 13, 2015

  1. Slide 1: Investor Day November 13, 2015: Materials Solutions

    Scott Sutton PRESIDENT, MATERIALS SOLUTIONS I N V E S T O R D A Y N O V E M B E R 1 3 , 2 0 1 5

  2. Slide 2: Power of Materials Solutions

    2I N V E S T O R D A Y 2 0 1 5 Power of Materials Solutions Customer Intimacy Pipeline Execution Landscape Management g40g74g91g80g93g76g3g40g585g83g80g72g91g76g3 Management Accelerated M&A > Opportunity pipeline will drive growth in Engineered Materials and Food Ingredients > Cellulose Derivatives

  3. Slide 3: A high margin business

    3I N V E S T O R D A Y 2 0 1 5 …A high margin business Adjusted EBIT Margin 34% Net Sales¹ 2015F Net Sales¹ 2015F Adjusted EBIT Adjusted EBIT Strategic g40g585g83g80g72g91g76g90 Pipeline: EM+FI Landscape Management: Cellulose Derivatives ¹ Net sales exclude inter-segment eliminations and proportiona

  4. Slide 4: Balanced, global footprint

    4I N V E S T O R D A Y 2 0 1 5 Balanced, global footprint KEY CELANESE REGIONAL HQ JOINT VENTURE TECHNICAL CENTER Spondon, UK Amsterdam, Netherlands Lanaken, Belgiuml Oberhausen, Germany Kaiserslautern, Germany g Sulzbach, Germany Frankfurt, Germany Polyplastics, Japan Yokohama, Japan1 Polyplastics,

  5. Slide 5: We lever positive global trends

    5I N V E S T O R D A Y 2 0 1 5 We lever positive global trends GLOBAL TRENDS CELANESE GROWTH GROWING DEMAND FOR VEHICLES INCREASED CONNECTIVITY IMPROVING HEALTH & WELLNESS ELEVATING ENVIRONMENTAL CONCERNS NEEDED CUSTOMER SOLUTIONS Vehicle Lightweighting Food Preservation Calorie Reduction Corrosion

  6. Slide 6: Opportunity pipeline delivering in a big way

    6I N V E S T O R D A Y 2 0 1 5 Opportunity pipeline delivering in a big way ¹ Pipeline: EM + FI and Cellulose Derivatives exclude earnings from strategic affiliates. 2012 2013 2014 2015F $676 28% 29% 30 % 34% $780-$790 5% CAGR 2012 2013 2014 2015F $146 $260-$270 11% 12% 12% 18%$14 2012 2013 2014 2015

  7. Slide 7: Three clear sources of value creation

    7I N V E S T O R D A Y 2 0 1 5 Three clear sources of value creation 2015F ADJUSTED EBIT PIPELINE: EM + FI OPPORTUNITY PIPELINE CELLULOSE DERIVATIVES LANDSCAPE MANAGEMENT & PRODUCTIVITY STRATEGIC AFFILIATES ACTIVE MANAGEMENT & TRANSLATING CE STRENGTHS 1 2 3 HOW WE CREATE VALUE > Strategic Affiliates

  8. Slide 8: The best package and the best project system

    8I N V E S T O R D A Y 2 0 1 5 The best package and the best project system C US TOMER M AT ER IAL PA RT GLOBAL ASSETS & RESOURCES MARKET PLACE PRESENCE DIFFERENTIATOR CAPABILITIES BROADEST MATERIALS PORTFOLIO PIPELINE AGGREGATION & EXECUTION MACHINE MILLION + + = SOLID EARNINGS GROWTH CUSTOMER NEED

  9. Slide 9: Celanese adds PEEK to its portfolio

    9I N V E S T O R D A Y 2 0 1 5 Celanese adds PEEK to its portfolio 1 Amorphousg1 Partially crystallineg1 PE-UHMWg1 PSUg1 PPAg1 PAIg1 PIg1 PESg1 PARg1 PPOg1 PCg1 COCg1 PEIg1 TPC-ET g1 FPg1 CFR-TPg1LFTg1 LCPg1 PPSg1 PA 6/66g1 PCTg1 PETg1 PBTg1 POMg1 LFTg1 PEEK CFR-TPg1 S E R V I C E T E M P E R A T U

  10. Slide 10: Deep, differentiated customer engagement

    10I N V E S T O R D A Y 2 0 1 5 Deep, differentiated customer engagement g48g85g197g92g76g85g74g76g3g13g3g58g76g83g83 across end-user’s ecosystem Sales Model more than shipping plastic pellets Competencies more than polymer formulation Team Based Approach INJECTION MOLDERS OEMSSYSTEM & TIER SUPPLIER

  11. Slide 11: Pipeline model in action

    11I N V E S T O R D A Y 2 0 1 5 Pipeline model in action 1 M&A PROGRAM CUSTOMER ENGAGEMENT MODEL Engineers & Technical Sales Rejects from screen GENERATING 10-15 PROJECTS DAILY Projects we can win at Projects aggregated, prioritized and executed under programs (~3000 projects) NUMEROUS SKILL DOMAINS

  12. Slide 12: CoolPoly LED headlamp

    12I N V E S T O R D A Y 2 0 1 5 CoolPoly® LED headlamp APPLICATION CUSTOMER BENEFITS GROWTH OPPORTUNITIES APPLICATION: LED Headlamp MATERIAL: CoolPoly® DESCRIPTION: Thermally conductive plastic for automotive LEDs INNOVATIVE SOLUTION: Thermal management combined with low cost and lightweighting PROJ

  13. Slide 13: Huawei enclosure separator using nano molding technology

    13I N V E S T O R D A Y 2 0 1 5 Huawei enclosure separator using nano molding technology (NMT) 1 APPLICATION CUSTOMER BENEFITS GROWTH OPPORTUNITIES APPLICATION: Isolates external communication functions from internal phone functions using nano molding technology (NMT) CUSTOMER: Huawei MATERIAL: Fort

  14. Slide 14: Medical polymers for Bespak Easifill Valve

    14I N V E S T O R D A Y 2 0 1 5 Medical polymers for Bespak Easifill Valve APPLICATION CUSTOMER BENEFITS GROWTH OPPORTUNITIES APPLICATION: Pressurized metered dose inhalers (asthma and COPD) MATERIAL: Celanex® PBT CUSTOMER: Bespak (leading manufacturers of pMDI inhalers) Sold to key pharma companies

  15. Slide 15: Celanese Innovation Showcase

    15I N V E S T O R D A Y 2 0 1 5 Celanese Innovation Showcase Tangible examples of the Celanese value creation model Growth Acetyl Chain: Organizational New Performance CoolPoly Thermally Conductive Polymers Model Freely Increasing Lightweight Solutions New Product PEEK: Ultra High Performance Polyme

  16. Slide 16: Three clear sources of value creation

    16I N V E S T O R D A Y 2 0 1 5 Three clear sources of value creation 2015F ADJUSTED EBIT PIPELINE: EM + FI OPPORTUNITY PIPELINE CELLULOSE DERIVATIVES LANDSCAPE MANAGEMENT & PRODUCTIVITY STRATEGIC AFFILIATES ACTIVE MANAGEMENT & TRANSLATING CE STRENGTHS 1 2 3 HOW WE CREATE VALUE 34% 34% 32% > Strateg

  17. Slide 17: Well positioned in acetate tow

    17I N V E S T O R D A Y 2 0 1 5 Well positioned in acetate tow 1Celanese estimates Demand1 2015E 33% 18% 22% 14%11%1% CHINA CELANESE EASTMAN DAICEL SOLVAYOTHER 2 > Tow is a critical component of a cigarette and customers expect: – Consistent quality – Surety of supply – Ability to supply globally –

  18. Slide 18: Global cigarette demand declines slowly

    18I N V E S T O R D A Y 2 0 1 5 Global cigarette demand declines slowly 2 2012 2013 2014 2015F 2016F 2017F 2018F 6.29 6.29 6.19 6.16 5.97 5.90 5.82 5.75 2011 GLOBAL CIGARETTE DEMAND1 (trillion SE2) 2011-2014 2014-2018 CHINA CIGARETTES ROW CIGARETTES CAGR CAGR -0.7% -1.7% 1Euromonitor, Celanese estim

  19. Slide 19: Cigarette industry is critical to China

    19I N V E S T O R D A Y 2 0 1 5 Cigarette industry is critical to China 2 1Tobacco Merchants Association Tobacco is the #1 tax generating industry in China > Important to the Chinese economy > A significant revenue source (~6.5%) for Chinese government CENTRAL COMMITTEE OF THE CHINESE COMMUNIST PARTY

  20. Slide 20: A perfect storm of events

    20I N V E S T O R D A Y 2 0 1 5 A perfect storm of events 2 > Customer tow inventory correction outside of China > Customer tow inventory correction inside China > Cigarette inventory correction inside of China > China increased the sales and production taxes on cigarettes > China tow capacity incre

  21. Slide 21: ...which is temporarily impacting Celanese

    21I N V E S T O R D A Y 2 0 1 5 …which is temporarily impacting Celanese 2 2011 2012 2013 2014 2015E 125 100 75 50 100 97 93 83 70 118121 115 106 100 INDEXED AVERAGE SALES PRICE1INDEXED SALES VOLUME1 CELANESE ACETATE (excluding Joint Ventures) 1Celanese estimates 2011-2015E 2011-2015E CAGR CAGR +4%

  22. Slide 22: We are taking action to improve our utilization

    22I N V E S T O R D A Y 2 0 1 5 We are taking action to improve our utilization 2 …with bolder moves ahead 1Global Acetate Manufacturers Association, Celanese estimates, public announcements DEMAND CHINA SOLVAY DAICEL EASTMAN CELANESE EXCESS CAPACITY UTILIZATION 2012 2013 2014 2015E 2016E 2017E 2018

  23. Slide 23: Three clear sources of value creation

    23I N V E S T O R D A Y 2 0 1 5 Three clear sources of value creation 2015F ADJUSTED EBIT PIPELINE: EM + FI OPPORTUNITY PIPELINE CELLULOSE DERIVATIVES LANDSCAPE MANAGEMENT & PRODUCTIVITY STRATEGIC AFFILIATES ACTIVE MANAGEMENT & TRANSLATING CE STRENGTHS 1 3 2 HOW WE CREATE VALUE 34% 34% 32% > Strateg

  24. Slide 24: Our joint ventures are important

    24I N V E S T O R D A Y 2 0 1 5 Our joint ventures are important CELLULOSE DERIVATIVES ENGINEERED MATERIALS VALUE CREATION INITIATIVE CNTC 30% Acetate Tow Transferring Celanese productivity initiatives Kureha 50% PPS Run as a completely integrated Celanese business Expansion start up in 2016, enteri

  25. Slide 25: Polyplastics pipeline example: Camera lens

    25I N V E S T O R D A Y 2 0 1 5 CAMERA COC LENS Polyplastics pipeline example: Camera lens 3 APPLICATION INNOVATIVE SOLUTION Camera lens for ADAS (Advanced Driver Assistance Systems) Glass lens can be replaced with TOPAS®g3g42g54g42g3g15g74g96g74g83g80g74g3g86g83g76g196g85g3 copolymer) with high-pro

  26. Slide 26: Success in value creation creates M&A opportunities

    26I N V E S T O R D A Y 2 0 1 5 Success in value creation creates M&A opportunities > Focus on expansion of pipeline generation capability > Target compounders that have unique products and a customer book > Target Nylon resin and compounds In excess of 50 acquisition opportunities in pipeline, for

  27. Slide 27: M&A pipeline: Nylon opportunities

    27I N V E S T O R D A Y 2 0 1 5 M&A pipeline: Nylon opportunities EMEA NA ASIA EMEA NA ASIA EMEA NA ASIA PRODUCER COMPOUNDER BASE RESINS SOURCE NUMBER OF TARGETS AVAILABILITY Possible Not available 8 2 8 1 3 10 4 10 1 3 1 3 2 1 3 2 1 1 7 1 7 13 6 3 1 5 12 1 3 In-progress Initiating contact DIALOGUE

  28. Slide 28: Expect double-digit earnings growth through 2018

    28I N V E S T O R D A Y 2 0 1 5 $1,050–$1,100 2015F 2018E 20% CAGR Affiliate Management Opportunity Pipeline Landscape Management 10% CAGR Power of Materials Solutions Customer Intimacy Pipeline Execution Landscape Management g40g74g91g80g93g76g3g40g585g83g80g72g91g76g3 Management Accelerated M&A AD

  29. Slide 29: Next Up: Celanese Innovation Showcase

    29I N V E S T O R D A Y 2 0 1 5 Next Up: Celanese Innovation Showcase Tangible examples of the Celanese value creation model Growth Acetyl Chain: Organizational New Performance CoolPoly Thermally Conductive Polymers Model Freely Increasing Lightweight Solutions New Product PEEK: Ultra High Performan

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