Celanese Corporation · NYSE:CE
Celanese — Investor Day (March 2021)
103 slides from Celanese's investor day presentation, Mar 25, 2021
Slide 1: 2021 Investor Day
2021 Investor Day March 25, 2021
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: Welcome
Welcome fA Celanese Lori Ryerkerk
Slide 4: Agenda
Agenda Welcome & Introduction Lori Acetyl Chain (AC) John Engineered Materials (EM) Tom Break Lori Ryerkerk Chairman & CEO John Fotheringham SVP, Acetyl Chain Acetate Tow (AT) Lori Sustainability Lori Financial Excellence Scott Wrap Up Lori Break Question & Answer Session Tom Kelly Scott Richardson
Slide 5: Everything we do starts with our people
Everything we do starts with our people… Celanese Values employees safety customers quality community shareholders …collectively focused on delivering value for shareholders 3
Slide 6: We have been on a path this decade
We have been on a path this decade… Competitive Positions & Differentiated Business Commercial Excellence Financial Health Established Models Implemented Enhanced $ 8-10 $ 6-8 4-6 $ 4.51 $ 4.07 $ 4.50 $ 5.67 $ $ 6.02 $ 6.61 7.51 $ 11.00 $ $ 9.53 7.64 $ 2011 2012 2013 2014 2015 2016 2017 2018 2019 20
Slide 7: Decisive actions amid 2020 pandemic
Decisive actions amid 2020 pandemic… 2020 Headwinds1 2020 Actions 27% lower Q2 Engineered Materials volume $214 million in productivity 14 % $1.575 billion monetization of Polyplastics lower Chinese acetic acid pricing Elotex acquired and integrated 53M Favorable long-term raw material agreements $
Slide 8: Performance has delivered leading total shareholder return
Performance has delivered leading total shareholder return Celanese Total Shareholder Return 296% Avg. Annual (February 28, 2011 - February 28, 2021) TSR S&P 500 253% Celanese 16.1% S&P 500 13.9% DJUSCH Index DJUSCH Index 11.3% 161% Positioned to drive continued shareholder value 6
Slide 9: Multiplying Our Momentum
MULTIPLYING OUR MOMENTUM
Slide 10: Themes you will hear today: focusing unique business models
Themes you will hear today 1 FOCUSING OUR UNIQUE BUSINESS MODELS TO WIN IN KEY END MARKETS… ENGINEERED MATERIALS ACETYL CHAIN ACETATE TOW Dedicated growth Subsegments with Alternative uses programs differentiated growth for acetate flake Aligning early with Driving differentiation in Sustainability
Slide 11: Themes you will hear today: transforming productivity
Themes you will hear today 2 TRANSFORMING OUR APPROACH TO PRODUCTIVITY … PROCESS AUTOMATION DATA & ANALYTICS SUPPLY CHAIN NETWORK Supply chain Analytics & predictive Regional production optimization tools forecasting localization Customer experience Artificial intelligence Scheduling upgrades soluti
Slide 12: Themes you will hear today: driving greater sustainability
Themes you will hear today 3 ENVIRONMENTAL DRIVING GREATER SUSTAINABILITY... SOCIETAL COMMERCIAL Energy & resource Diversity, equity & Sustainable efficiency inclusion feedstocks Climate change Community End-of-life product partnerships solutions ...consistent with our values and top tier shareholde
Slide 13: Themes you will hear today: cash generation and capital deployment
Themes you will hear today 4 ENHANCING OUR CASH GENERATION AND CAPITAL DEPLOYMENT... ORGANIC INVESTMENT INORGANIC INVESTMENT CASH TO SHAREHOLDERS High-return, Attractive M&A Dividend growth capital-efficient opportunity sets expansions Productivity Joint venture Steady & opportunistic enhancing proj
Slide 14: Multiplying our momentum
Multiplying our momentum… Adjusted Earnings Per Share $ 11-14 $ 8-10 1 Winning in key end markets $ 6-8 2 Transforming our productivity 3 Driving greater sustainability $ 6.02 $ 6.61 7.51 $ 11.00 $ 9.53 $ 7.64 $ 4 Enhancing our capital deployment 2015 2016 ADJUSTED EBIT 2017 2018 2019 ADJUSTED EPS 2
Slide 15: Acetyl Chain
Acetyl Chain John Fotheringham
Slide 16: Evolution of the Acetyl Chain business model
Evolution of the Acetyl Chain business model... 0.3 Legacy Business Chain Implementation Enhanced Flexibility Adjusted EBIT Adjusted EBIT margin 25% $700M - 900M 18% 17% $450M - 600M 14% VAM footprint rationalizations 2008-2009 Creation of Start of Fairway VAE footprint 2018 market Clear Lake 2020 p
Slide 17: Themes you will hear today
Themes you will hear today 1 GLOBAL MANUFACTURING FOOTPRINT SERVICING A WIDE RANGE OF RESILIENT END USES 2 UNMATCHED VALUE CHAIN OPTIONALITY SUPPORTED BY LOW COST TECHNOLOGY 3 HEALTHY INDUSTRY DYNAMICS WITH STRONG DEMAND GROWTH 4 TARGETED CAPITAL INVESTMENT SUPPORTING GROWING AND SUSTAINABLE END USE
Slide 18: Acetyls chemistry supports every day life
Acetyls chemistry supports every day life Food & Building & Medical & Automotive & Packaging & Agriculture Construction Pharmaceutical Industrials Paper Food additives Paints & coatings Medicine production Safety glass Adhesives Thickening agents Cement additives Disinfection & Inks & solvents Coati
Slide 19: Industry-leading commercial diversity and flexibility
Industry-leading commercial diversity and flexibility... 2018-2020 Average Net Sales: $3.5B BY PRODUCT BY REGION BY END USE Food & Bev Textile Add s Ind itiv ust Paints & es ria l Coatings VAM Emulsions Cons ume r Europe Americas Filtration Automotive on 21 cti Adhesives Other stru Acetic Con Acid A
Slide 20: Globally integrated acetyls leader
Globally integrated acetyls leader... CARBON METHANOL ACETIC VAM EMULSIONS POWDERS MONOXIDE ACID Celanese Competitor 1 Competitor 2 AMERICAS Competitor 3 EMEA1 Competitor 4 Competitor 5 ASIA Competitor 6 Competitor 7 ...creates unequaled market knowledge and optionality 1 Europe, Middle East, & Afri
Slide 21: Unique value chain
Unique value chain... 1 Carbon Monoxide 2 3 4 5 Acetic Acid VAM Emulsions Powders ~70% acid content ~30% acid content ~35% acid content 1 Methanol Anhydride Flexible entry into the market & Esters Legacy Acetyl Chain Extended Acetyl Chain ...enables flexible product placement and value optimization
Slide 22: Value creation through advantaged technology
Value creation through advantaged technology... State-of-the-art Low capital intensity Proprietary catalyst process technology for world-scale technology for maximum and intellectual property production facilities yield and low metals usage • Leading technologies • Continued growth • Global catalyst
Slide 23: Cost leadership in all scenarios
Cost leadership in all scenarios... Acid Cost Curve With Low Oil Acid Cost Curve With High Oil Nominal global price setter Nominal global price setter Clear Lake Clear Lake Clear Lake Clear Lake Expansion Expansion Singapore Singapore Nanjing Nanjing Celanese Americas & EMEA AOC1 China ...driven by
Slide 24: Leading cost positions in import markets
Leading cost positions in import markets Europe Landed Southeast Asia Landed Europe Southeast Asia In-region Incremental Celanese producers importers Based on internal estimates of average landed cost into key regions 10
Slide 25: Strong demand recovery
Strong demand recovery... Capacity overbuild Improved utilization on demand growth Short-term Recovery to healthy in Asia demand dislocation market conditions 24 Demand (million tonnes) 90% Utilization 21 80% 18 70% 15 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021F 2022F 2023F Acid + VAM De
Slide 26: Enhanced building and construction portfolio
Enhanced building and construction portfolio Tile Adhesive & Grouts Renders & Plasters CE Product End Uses External Thermal Insulation Composite Systems Solar PV Cells VAM • VAE/powder derivatives • Adhesives Repairs VAE • Powder derivatives • Adhesives • Paints & coatings Paints & Coatings RDP Floo
Slide 27: Solar power accelerates Asia vinyls demand
Solar power accelerates Asia vinyls demand High Quality EVA and VAM Support Global PV Growth 300 Solar PV cells require high quality EVA 250 300 Solar power capacity additions (GW) 15% solar CAGR from 2019 to 2030 200 VAM equivalent (kt) Celanese can supply additional high quality VAM capacity at 20
Slide 28: Investing in high return projects
Investing in high return projects... ANNOUNCED ONLINE PRODUCTIVITY DERIVITIZATION GROWTH SUSTAINABILITY GLOBAL ACID RECONFIGURATION: Q1 2019 2023 New Build at Clear Lake METHANOL EXPANSION: Q1 2021 2023 Debottleneck at Clear Lake VAM EXPANSION: Q1 2021 2022-2023 Debottleneck at Nanjing VAE EMULSION
Slide 29: Enhanced acetic acid project positions for growth
Enhanced acetic acid project positions for growth... Enhanced Asia flexibility Clear Lake capital efficiency Retention of project value with new supply contracts and productivity and supply optionality Lowered cost position Project extension Unparalleled capacity relative to coal and oil enabled cap
Slide 30: Vinyls expansion program creates additional flexibility
Vinyls expansion program creates additional flexibility... VAM Expansion VAE Expansions Powders Growth Nanjing Nanjing & Frankfurt Europe & Asia Solar PV driving Higher building Growing polymer acute Asia growth standards, powders penetration in vinyls chain performance and into mortar sustainabilit
Slide 31: Focused on driving greater sustainability
Focused on driving greater sustainability... Sustainable • Clear Lake partial solar power supply Sourcing • Bio-based renewable natural gas feedstock optionality Acetyl Chain Sustainability CO2 Capture • Clear Lake methanol from recycled CO2 Pipeline and Recycling Recycled • Certified recycled aceti
Slide 32: Acetyl Chain financial outlook
Acetyl Chain financial outlook 1 Resilient Global Markets Adjusted EBIT (in millions) 2 Unmatched Value Chain Optionality ~$900 $900-1,000 3 $727 Healthy Industry Dynamics $568 4 21% 18% Targeted Capital Investment Adjusted EBIT Adjusted EBIT margin margin 2019 2020 2021F 2023F NET SALES CAGR ADJUST
Slide 33: Engineered Materials
Engineered Materials Tom Kelly
Slide 34: Improving the world and everyday life
Improving the world and everyday life Consumer Electronics Automotive Medical Small Appliance Packaging Industrial 2
Slide 35: Themes you will hear today
Themes you will hear today 1 PROJECT PIPELINE MODEL CONTINUES TO DIFFERENTIATE EM; DIGITALIZATION STRENGTHENS THE MODEL BY INCREASING SCALABILITY, PREDICTABILITY 2 GROWTH FOCUSED PROGRAMS IN FUTURE MOBILITY, MEDICAL AND CONNECTIVITY POSITION EM FOR OUTSIZED GROWTH 3 INVESTMENTS IN LOCALIZATION WILL
Slide 36: A broad portfolio and application expertise
A broad portfolio and application expertise… Broad Polymer Portfolio Industry Leading 2020 Net Sales Technical Competencies 25-30 UNIVERSE OF ENGINEERED POLYMERS Automotive Formulation Development >20 CELANESE ENGINEERED MATERIALS Part & Tool Design Electrical & Electronics PEER 1 ~50% Prototyping I
Slide 37: Strategic acquisitions and JV actions
Strategic acquisitions and JV actions... Bolstered solution offering and global reach Reduced EM adjusted EBIT from affiliate earnings by half to ~15% NILIT Plastics HIGH GROWTH Monetized passive investment GEOGRAPHY for $1.6B SOLUTION SET elastomers nylon Agreement to restructure as KEY END MARKET
Slide 38: Continuous innovations to expand solution set
Continuous innovations to expand solution set... Flame Heat New in 2020 Tribology Retardant Stabilized Media Flexibility Low Resistant Medical Warpage MT Grades Electrically Impact Conductive Resistance Low High Emission Strength Celanese High Flow Custom LI-ION Lubricated 5G Applications UV Stabili
Slide 39: Pipeline model reinforced by growth programs
Pipeline model reinforced by growth programs… • Disruptive trends • Growth and profit focus FUTURE GROWTH INCUBATE • New to CE / new to customers PROGRAMS • Technology roadmaps Revenue / Earnings OPPORTUNITY PIPELINE ACCELERATE • Unmet customer needs • Customized material development • Curated oppor
Slide 40: Model and growth programs lift EM earnings
Model and growth programs lift EM earnings... Pre-Opportunity Pipeline Project Pipeline & Acquisitions Growth Programs ~$450M - 700M Adjusted EBIT (base business)1 Adjusted EBIT margin ~$300M - 500M >25% Softer Nilit Omni Asia growth through localization NEXT Sustainable portfolio 2010 2011 2012 201
Slide 41: Opportunity model continues to be foundational
Opportunity model continues to be foundational Projects to be Implemented and Extended at Customers Customer Expert Global Engagement Committee Solution Set Evalution Model and Skill Domains Generating Projects We Projects Aggregated, Projects Daily Fast Fail Can Win Prioritized & Executed Leveragin
Slide 42: Model evolves to support continued innovation
Model evolves to support continued innovation... 2015 2016 2017 2018 2019 2020 2023F SCALE THE 700 MODEL EM 1.0 TEAM EM 2.0 Digitalized MEMBERS Implement Debottleneck Run Model Leverage Maximize the Enhanced Program New Model Model Hard Model Model Efficiency Evolution DELIVERING GROWTH (Peak Net Sa
Slide 43: Growth programs and technology innovation make EM future ready
Growth programs and technology innovation make EM future ready Programs aligned with mega trends 5G Future Mobility Medical Connectivity Sustainability Elements of program that enable growth Dedicated Forward Looking Aligned Technology Voice-of-Customer Program Teams Objectives & Product Roadmaps Dr
Slide 44: Opportunities in future mobility expand the scope for EM solutions
Opportunities in future mobility expand the scope for EM solutions Safe navigation Lighter and safer GUR exceptionally well-positioned Advanced Driver Assistance Systems Electric vehicle powertrain in lithium-ion battery separator (LiBS) market THERMAL MANAGEMENT E-MOTOR CE PEER 1 PEER 2 PEER 3 Glob
Slide 45: Focused EV program driving growth beyond industry fundamentals
Focused EV program driving growth beyond industry fundamentals... CAGR RECOVERY IN AUTO BUILDS (CAGR 2020-2023F) + GROWING ADDRESSABLE POLYMER CONTENT (kilos per vehicle) (2020) = GROWTH IN EM ACCESSIBLE POLYMER MARKET CAGR 2020-23F 2020-23F ~10% Battery Electric Vehicles 30 ~11% ~50% Hybrid & Elect
Slide 46: Broad medical-pharma capabilities
Broad medical-pharma capabilities... Capabilities Therapeutic Areas • Customized POM, GUR, PBT, LCP, EVA grades • Certified biocompatibility grades EXISTING Portfolio Orthopedics Diabetes • Design assistance • Analytical testing • Moldflow® for modeling and analysis COPD / Asthma Women’s Health Cust
Slide 47: VitalDose success in drug delivery systems
VitalDose success in drug delivery systems... ® ® Controlled Release Excipient Celanese Solution Industry Focus Controlled Release Dynamics Platform Technology Improved Efficacy • Drug-eluting implants Concentration Higher prevalence of side effects in this region • Intravaginal rings Dynamic Drug •
Slide 48: Connectivity
Connectivity
Slide 49: Multiple mega trends are enabled by 5G
Multiple mega trends are enabled by 5G... 5G Advancements in ‘smart’ applications... …are creating new design requirements Base Station Smart City Improved reliability Enable smaller and higher performance antenna CONNECTED Mobile Devices Broad bandwidth COMMUNITY: 5G & Part consolidation BEYOND Wei
Slide 50: Customizing LCP to meet unique design requirements
Customizing LCP to meet unique design 5G requirements… Celanese 5G Technology Roadmap Pipeline Growth1 Dk:<20 Ultra Low Df High Dk Zenite® LCP Zenite® LCP • Smaller Antenna 2x • Minimize Signal Loss Dk: 8-18 GROWTH Dielectric Constant, Dk • Impedance Reduction 2018-20 Commercial LCP & PPS Dk:<0.0006
Slide 51: Growing portfolio of sustainable offerings
Growing portfolio of sustainable offerings… SEGMENTS APPROACH CELANESE SOLUTION Pipeline Growth1 CURRENT Reduced CO2 • Eco-B POM NEW footprint END Highly specified • Clarifoil® MARKETS performance polymer Bio-based • BlueRidgeTM NEW raw materials • China LCP 4x GROWTH 2018-20 • Ecomid® Nylon Standar
Slide 52: Investing in Asia localization
Investing in Asia localization... Asia Sales Volume Winning with Local Innovators CAGR Local 2010-20 Development 18% Commercial Excellence Local Supply 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 6x ~$100M 2x In capital Number of expenditures employees in Production over the last region t
Slide 53: Engineered Materials financial outlook
Engineered Materials financial outlook 1 Enhanced Pipeline Model Adjusted EBIT (in millions) 2 $700-750 Growth Programs ~$550 3 $403 Asia Localization 19% 4 Adjusted Sustainable Portfolio EBIT margin 2020 2021F Base Business Pipeline Program 2023F Growth Enhancements Initiatives NET SALES CAGR ADJUS
Slide 54: Acetate Tow
Acetate Tow MULTIPLYING p Lori Ryerkerk
Slide 55: Celanese Acetate Enterprise
Sustainably Forested Trees Celanese Vinegar and Glucose Renewable Acetate Consumed by Non-food sources Enterprise microorganisms High Purity Acetate Cellulose Derivatives + Acetic Acid Sustainable Biodegradable raw materials Compostable Acetate Tow Bio-based Acetate Flake Sustainable Environmentally
Slide 56: A central link in our businesses
A central link in our businesses Consumer of Supplier of upstream products sustainable materials Acetyl Chain Acetate Tow Engineered Materials Acetic Acid Acetate Flake Acetate Tow 3
Slide 57: Acetate Tow financial outlook
Acetate Tow financial outlook 1 Predictable Tow Adjusted EBIT (in millions) Market Outlook 2 $ 249 ~$245 ~$245 Growing China Affiliate Dividends 3 High Levels of Productivity 4 Alternative Uses for Acetate Flake 2020 2021F Tow Demand Decline Affiliate Dividends Productivity 2023F INDUSTRY DYNAMICS A
Slide 58: Sustainability
Sustainability Lori Ryerkerk
Slide 59: Accelerating safe and sustainable solutions through chemistry
Accelerating safe and sustainable solutions through chemistry Central to Our Business Human Capital Demand Optimization Growth SUSTAINABILITY Right To Risk Compete Mitigation Aligned with Our Values people safety customers quality community shareholders 2
Slide 60: Our approach to sustainability
Our approach to sustainability GOVERNANCE: NAVIGATING A SUSTAINABLE FUTURE ENVIRONMENTAL SOCIETAL COMMERCIAL PRESERVING INVESTING IN OUR ADVANCING SAFE THE ENVIRONMENT PEOPLE AND AND SUSTAINABLE COMMUNITIES CUSTOMER SOLUTIONS Waste Human Capital Chemical Safety Water Workforce Health and Safety Supp
Slide 61: Governance: navigating a sustainable future
Governance: navigating a sustainable future Commitment formalized through an ESG Council’s Progress: ESG Council with Board oversight Q3 2019 Formed ESG Council Board of Directors Q4 2019 Completed ESG priority assessment Committed to adopt SASB Chemical Audit CMD NCG EHSQPP Q1 2020 Industry standar
Slide 62: Preserving the environment
Preserving the environment Waste Water Energy Air 34% reduction in solid waste Committed to Operation 237 energy projects delivered 37% VOC3 intensity intensity 2013-20191 Clean Sweep pledge for ~$25 million in savings from reduction from 2013-20191 European and U.S. facilities 2019-2020 30 ~160,000
Slide 63: Addressing climate change
Addressing climate change Investing in projects to: Green Initiatives at Clear Lake, Texas Facility Increase energy efficiency and improve reliability Renewable Energy Supply Methanol Production Signed a renewable energy contract to from Recycled CO2 Recover and reuse supply ~33% of the annual elect
Slide 64: Committed to our people and communities
Committed to our people and communities Workforce Process Safety Community Human Capital Health & Safety & Emergency Relations Preparedness Providing a diverse, equitable ~50% reduction in total ~75% reduction in total $1.4 million donated to ~900 and inclusive culture recordable incidents from proc
Slide 65: Driving Diversity, Equity & Inclusion
Driving Diversity, Equity & Inclusion (DE&I)... Leadership Employee Engagement Outreach Global DE&I Council as our Employee Resource Groups (ERGs) Engagement with key industry advisory committee to inspire, develop and increase and academic organizations the visibility of under-represented to recrui
Slide 66: Advancing safe and sustainable customer solutions
Advancing safe and sustainable customer solutions Chemical Safety Supply Chain Management Sustainable Solutions Publish product profiles Sourcing of renewable energy and Chemistry of platform well prioritized by risk/volume renewable or bio-based raw materials suited for long-term transition to more
Slide 67: Enabling sustainable solutions
Enabling sustainable solutions 2020 Net Sales: $5.7B Sustainable Solutions and Products Redispersible powders reduce required tile adhesive thickness, lowering the Sustainable solutions and carbon footprint by up to 50% products Clarifoil® and BlueRidge product TM offerings that are bio-based materi
Slide 68: On our sustainability horizon
On our sustainability horizon Setting targets for Integrating software to environmental goals capture environmental SASB metrics Publishing human capital Launching the 2020 metrics for increased Sustainability Report and transparency website in mid-2021 Voluntary sustainability reporting to ACC Incr
Slide 69: Financial Excellence
Financial Excellence Acetate Tow Scott Richardson Lori Ryerkerk
Slide 70: Disciplined focus to drive shareholder value
Disciplined focus to drive shareholder value 1 INVEST TIME AND EFFORT TO EVOLVE OUR LEADING BUSINESS FRANCHISES 2 LEVERAGE OUR BUSINESSES TO DRIVE STRONG CASH GENERATION AND USE THAT CASH FOR SHAREHOLDER VALUE ACCRETION 3 FOCUS ON DELIVERING DOUBLE-DIGIT PER YEAR ADJUSTED EARNINGS PER SHARE GROWTH 2
Slide 71: Leading positions and business model evolution have driven performance uplift
Leading positions and business model evolution have driven performance uplift Adjusted EBIT Adjusted Earnings (in millions) Per Share 11.00-11.50 $ 1,852 $ 11.00 $ 9.53 $ 1,476 $ 1,356 $ 1,268 $ $ 1,278 7.51 $ 7.64 $ 1,236 $ 1,131 $ 6.61 $ 1,056 $ 6.02 $ 962 $ 5.67 $ 4.50 $ 4.07 $ 2012 2013 2014 201
Slide 72: Consistent performance translates to shareholder value
Consistent performance translates to shareholder value Total Shareholder Return Free Cash Flow Yield (February 28, 2018 – February 28, 2021) (Avg. 2018 – 2020) CE 47 % DJUSCH Proxy Peers 22% 29% CE 8 % DJUSCH Proxy Peers 6% 6% Return on Invested Capital Shareholder Yield (Avg. 2018 – 2020) (Avg. 201
Slide 73: Reliably strong total shareholder returns
Reliably strong total shareholder returns Over the last decade, Driven in an average year CE has delivered… over this period by… 9 10 Multiple Earnings Expansion Growth out of ...positive TSR in years with average annual TSR of 15% 1 Dividends Share Repurchases Two-thirds of historical shareholder v
Slide 74: Foundational level of returns from dividends and share repurchases
Foundational level of returns from dividends and share repurchases Dividends and Share 1,300 $ 1,097 $ 943 $ Repurchases $ 594 701 $ $ 741 (in millions) 247 $ 394 $ $ 65 $ 88 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Repurchases Dividends Shareholder Yield 7.7% 9.5% 7.7% 4.3% 6.2% 7.0% 5.6%
Slide 75: Key pillars in place to lift earnings profile
Key pillars in place to lift earnings profile Business Model Organic High-Return Productivity Enhancement Investment M&A Raw material & Pipeline model evolution Productivity-based Product & technology energy efficiency investments enhancement Scaling our models Scaling our production Incremental, Su
Slide 76: Earnings growth begins with productivity culture
Earnings growth begins with productivity culture Historical Productivity 2020 Productivity (in millions) Business Manufacturing 235 $ Enterprise 214 $ 165 $ 168 $ ~$150 M 145 $ Average $ 125 2015 2016 2017 2018 2019 2020 Procurement Elevated and highly sustainable productivity in 2020 8
Slide 77: Productivity remains core component of organic investment
Productivity remains core component of organic investment 1 Clear Lake Acetic Acid Expansion 2 European Compounding Center of Excellence 3 End to End Supply Chain Transformation (Wave 1) Business Acetyl Chain Engineered Materials All Capital Cost & Completion < $350 M 2023 < $20 M 2022 < $25 M 2021
Slide 78: Example of end to end supply chain transformation
Example of end to end supply chain transformation Multiple Waves 11 Project Workstreams (Wave 1) Hundreds of Drivers Three Benefits New supply chain Productivity Wave 1 Advanced Statistical Forecasting 10 technology tools Savings Wave 2 Supply Network Planning 20 RPA’s1 (“Bots”) Customer Production
Slide 79: Organic investments represent highest return opportunities
Organic investments represent highest return opportunities Historical CAPEX 2020 CAPEX Revenue Maintenance 10 % Generation of Business 9% 6% 6% 6% 5 % EHS1 5% 5% 5% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021F 2022F 2023F Cost % of Net Sales Total Reduction Revitalizing a deep organic investme
Slide 80: Highly disciplined capital allocation strategy
Highly disciplined capital allocation strategy ROIC (Avg. 2018-2020) 19.6% CE Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 Unwavering discipline drives top tier return on capital Based on FactSet and internal estimates 12
Slide 81: Business plans to yield high-quality earnings
Business plans to yield high-quality earnings 700-750 MATERIALS • Project pipeline and incremental investments $ ENGINEERED • >85% adjusted EBIT from base business 2023 million • Upside from M&A potential Adjusted EBIT 1.7-1.8 $ • Leading network optionality and 900-1,000 $ ACETYL CHAIN incremental
Slide 82: Business plans yield powerful cash generation
Business plans yield powerful cash generation Cumulative Operating Cash Flow Uses of Operating Cash Flow (2021 - 2023) (2021 - 2023) (in billions) (in billions) ~$4-5 CAPEX ~$1.5 >$1.5-2.5 excess cash generation for share repurchases and M&A DIVIDENDS 2021F 2022F 2023F ~$1.0 Excess cash generation b
Slide 83: Flexible, diversified balance sheet enables growth strategy
Flexible, diversified balance sheet enables growth strategy 2.2 2.5 2.3 2.5 1.7 2.0 1.9 2.2 1.6 2.2 1.9 1.6 Debt / EBITDA 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021F 1000 Debt Maturity $ Profile 0 (in millions) $ 2021 2022 2023 20241 2025 2026 2027 € Bond $ Bond Ability to access multipl
Slide 84: Additional firepower on the balance sheet
Additional firepower on the balance sheet Current Cash Balance Sheet Excess Cash Generation Capacity Levels (2021-2023) (through 2023) Up to Firepower $ 2.0B $ 6.0B available to $ 4.0-5.0B drive growth including $ 1.0B M&A and share $ 1.5B repurchases $ 1.2B Excess Cash Operating Dividends Capital A
Slide 85: Sustaining double-digit growth in adjusted earnings per share
Sustaining double-digit growth in adjusted earnings per share… Adjusted Earnings Per Share 13.00-14.00 $ 1 Winning in key end markets 11.00-11.50 $ 2 Transforming our productivity $ 7.64 3 Double- Driving greater digit sustainability CAGR 4 Enhancing our capital deployment 2020 2021F Engineered Mate
Slide 86: Glossary
Glossary For Celanese Non-GAAP measures, please refer to the Non-US GAAP Financial Measures and Supplemental Information documents under Financial Information/Non-GAAP Financial Measures on our investor relations website, investors.celanese.com • Average Market Cap is the average of quarterly beginn
Slide 87: Wrap Up
MULTIPLYING OUR MOMENTUM Wra p U p ‘C) Celanese Lori Ryerkerk
Slide 88: Keep in mind
Keep in mind… 1 OUR 2023 OUTLOOK IS BASED ON CONTROLLABLE ACTIONS 2 THERE ARE SIGNIFICANT VALUE OPPORTUNITIES BEYOND WHAT IS INCLUDED IN OUR 2023 OUTLOOK 3 WE ARE TAKING ACTIONS TODAY TO DELIVER INCREMENTAL GROWTH BEYOND 2023 2
Slide 89: History of sustained growth
History of sustained growth... Average market capitalization (in billions) 15.2 $ $ 14.5 Share price $ 13.2 13.7 $ 12.1 $ $ 9.7 $ 9.9 $ 9.1 $ 7.9 $ 6.6 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1 ...driven by controllable actions Based on FactSet 1 2021 share price and average market capital
Slide 90: Additional growth opportunities
Additional growth opportunities Broad replacement of Material acetyls curtailment single-use plastics with or rationalization activity sustainable alternatives in China Acceleration of US, EU, Tow industry or China infrastructure rationalization or development consolidation Accelerated global Action
Slide 91: Real value generated from our business portfolio
Real value generated from our business portfolio Diversification Cost Efficiency Natural Hedges Capital Allocation End market Business Complementary diversification ~ 50M $ annually cycles cash generation # 1 Auto Shared primary Currency Complementary ENGINEERED # 2 Electrical & MATERIALS Electronic
Slide 92: Disciplined M&A pipeline criteria
Disciplined M&A pipeline criteria Industry Commercial Industry leadership High customer intimacy Competitive cost position Aligns well with commercial model Upstream or downstream Complementary (region, end market) value creation Differentiated offering (products, capabilities, services) Financial T
Slide 93: Broad M&A opportunity set in Engineered Materials
Broad M&A opportunity set in Engineered Materials Capabilities Medical Molding Electronic Chemicals Polymers High Performance & Materials Additive Fibers Manufacturing EMI High Temperature Shielding Polymers Thermosets Flame Retardancy Biopolymers Part Composite Manufacturing Recycling Existing Form
Slide 94: Significant upside with M&A
Significant upside with M&A 100% 1 Outlook assumes of Market Capitalization excess cash generation goes to 1 Growth Outlook (in billions) share repurchases and bolt-on M&A Up To M&A 2 Opportunity $ 5+ Potential for value $2-3B $ 15 creation from synergies from 2 $ 12 larger M&A $ 10 Earnings approac
Slide 95: Extending our strategic investment horizon
Extending our strategic investment horizon Adjusted Earnings Per Share Contributors Beyond 2023 (startup within 2023 or after) 11-14 $ Acetyl Chain Startup Clear Lake acetic acid expansion 2023 8-10 $ Methanol from CO2 2023 Nanjing VAM expansion 2023 Frankfurt emulsions expansion 2023 Nanjing emulsi
Slide 96: How we deliver shareholder value
How we deliver shareholder value… Multiplying Our Momentum 1 Deliver shareholder value on what we can control 2 Partner with our customers to deliver innovative solutions 3 Expand and flex our commercial optionality 4 Allocate our capital with a disciplined focus on returns 5 Foster a culture of div
Slide 97: Slide 97
Slide 98: Acetate Tow Appendix
Acetate Tow Appendix
Slide 99: Predictable and stable market outlook
Predictable and stable market outlook Gradual, secular decline Global Cigarette Demand1 in tow demand 2020 – 2023E CAGR decline of 1% Limited impact on tow demand from COVID-19 pandemic Global Cigarettes (trillions) Stable inventory and regional trade dynamics 2013 2014 2015 2016 2017 2018 2019 2020
Slide 100: Stabilizing industry dynamics
Stabilizing industry dynamics Estimated Global Tow Capacity (~800 kt) Global Tow Utilization 97% Other China captive Celanese 91% 92% Kunming 92% 87% 88% Tow Volume (kt) 89% Zhuhai 85% Eastman Nantong Jinan/Hubei Rest of world 2013 2014 2015 2016 2017 2018 2019 2020 2021F 2022F 2023F Daicel Blacksto
Slide 101: Growing China dividends
Growing China dividends Dividend growth drivers Efficiency improvements at our China JVs Flake expansion and potential future incremental expansions Increased tow sales in China Cost reductions in raw materials such as pulp and acid Development of new flake end uses Other JV dividends overview Share
Slide 102: Maintaining high level of productivity
Maintaining high level of productivity Productivity Productivity 8% Initiatives 7% 6% 2015 Pulp sourcing optionality 2016 Capacity reduction at Lanaken 5% 2019-2020 Ocotlán closure 4% 3% 2020 Combined heat power plant at Lanaken 2021-2023 • Energy reduction • Manufacturing improvements 2015 2016 201
Slide 103: Driving value by capturing market opportunities
Driving value by capturing market opportunities Product Regional Growth Sustainability Growth Opportunities Opportunities Opportunities OPPORTUNITY: OPPORTUNITY: OPPORTUNITY: Growth in alternatives Shift in regional demand Demand for sustainable to traditional cigarettes products CE RESPONSE: CE RES