Celanese Corporation · NYSE:CE
Celanese — Merger or Acquisition (December 2020)
12 slides from Celanese's merger presentation, December 2020
Slide 1: Celanese to Generate Incremental Shareholder Value Through Restructuring of KEPCO Joint Venture
Celanese to Generate Incremental Shareholder Value Through Restructuring of KEPCO Joint Venture Engineered Materials Well-Positioned to Continue Growth Trajectory December 2020
Slide 2: Disclosures
Disclosures Forward-Looking Statements This presentation contains "forward-looking statements," which include information concerning the Company's plans, objectives, goals, strategies, future revenues, synergies, performance, capital expenditures, financing needs and other information that is not hi
Slide 3: Summary Highlights
Summary Highlights Committed to a multi-year value creation strategy in Engineered Materials (EM), which is more diverse, 1 solutions-oriented, and customer-focused. Celanese (CE) investment in local Asia capabilities in our base business 1 has driven double-digit annual 2 sales growth in Asia over
Slide 4: Evolution of Engineered Materials
1 Evolution of Engineered Materials Engineered Materials is more diverse, solutions-oriented, and customer-focused 2010 2019 Regional diversification driven by growth in Asia1 Greater Diversification Greater end market diversification 1/2 auto 1/3 auto & Resiliency Adj. EBIT increasingly from base b
Slide 5: EM Growth in Asia
2 EM Growth in Asia Investment in local capabilities to drive continued growth Joint Venture Led Presence EM Base Business Growth in Asia Future Growth Strategy (1960 – 2009) (2010 – 2019) 2020 - Asia presence established via JVs: Net sales CAGR of 15%, nearly double the US or Europe Monetization of
Slide 6: KEPCO Background and Performance
3 KEPCO Background and Performance Celanese acquired 50% ownership to expand its presence in Asia • KEPCO formed in 1987 as a standalone production and marketing JV • CE acquired 50% ownership stake in KEPCO in 1999, joining Mitsubishi Gas Chemical Company, Inc. (MGC) (40%) and Mitsubishi Corporatio
Slide 7: Restructuring to Create Significant Value
4 Restructuring to Create Significant Value EM to leverage its model and global resources on offtake volume Restructuring KEPCO as manufacturing JV CE retains 50% ownership; offtake rights to 50% of POM production1 CE maintains JV governance rights KEPCO Strengths Maintains product development and m
Slide 8: Unparalleled Global POM Polymerization Network
4 Unparalleled Global POM Polymerization Network KEPCO restructuring provides world-scale Asia capacity • EM marketing of >400kt globally for base business and its JVs • Access to world-scale POM polymerization Frankfurt, Germany (180kt capacity) Ulsan, South Korea in Americas, Europe KEPCO JV (140k
Slide 9: Financial Impact of KEPCO Restructuring
5 Financial Impact of KEPCO Restructuring Slight immediate accretion to adjusted EBIT and adjusted EPS in 2021 KEPCO Impact to CE Explanation 2019 2019 Actuals Pro Forma1 (In millions) Pre: CE 50% share of JV earnings KEPCO Equity Earnings2 $27 $0 – 5 Post: CE 50% share of JV earnings reduced to cos
Slide 10: Appendix
Appendix
Slide 11: Non-GAAP Definitions
Non-GAAP Definitions Adjusted EBIT is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense and taxe
Slide 12: Reconciliation to U.S. GAAP
Reconciliation to U.S. GAAP EM Supplemental Segment Data and Reconciliation of Non-GAAP Measures – Unaudited FY 2010 FY 2019 (In $ millions, except percentages) Operating Profit (Loss) / Operating Margin1 182 16.4% 446 18.7% Other Income (Expense) Attributable to Celanese Corporation (1) - Certain I