Celanese Corporation · NYSE:CE
Celanese — Investor Day (March 2021)
20 slides from Celanese's investor day presentation, Mar 25, 2021
Slide 1: Acetyl Chain
Acetyl Chain John Fotheringham
Slide 2: Evolution of the Acetyl Chain business model
Evolution of the Acetyl Chain business model... ...has doubled foundational earnings in the last decade Legacy Business Chain Implementation 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 0.3 Enhanced Flexibility Adjusted EBIT Adjusted EBIT margin 2008-2009 financial crisis 2 VAE f
Slide 3: Themes you will hear today
Themes you will hear today 1 GLOBAL MANUFACTURING FOOTPRINT SERVICING A WIDE RANGE OFRESILIENT END USES 2 UNMATCHED VALUE CHAIN OPTIONALITY SUPPORTED BY LOWCOST TECHNOLOGY 3 HEALTHY INDUSTRY DYNAMICS WITH STRONG DEMAND GROWTH 4 TARGETED CAPITAL INVESTMENT SUPPORTING GROWING AND SUSTAINABLE END USES
Slide 4: Acetyls chemistry supports every day life
Acetyls chemistry supports every day life Food & Agriculture Building & Construction Medical & Pharmaceutical Automotive & Industrials Packaging & Paper Food additives Thickening agents Crop protection Dust control Paints & coatings Cement additives Waterproofing External insulation Medicine product
Slide 5: Industry-leading commercial diversity and flexibility
Industry-leading commercial diversity and flexibility... ...results in margins similar or higher than specialty materials Based on internal estimates 2018-2020 Average Net Sales: $3.5B BY PRODUCT BY REGION BY END USE Anhydride & Esters OtherAcetic Acid VAM 21 11 10 Paints & Coatings Adhesives Paper
Slide 6: Globally integrated acetyls leader
Globally integrated acetyls leader... ...creates unequaled market knowledge and optionality 1 Europe, Middle East, & Africa CARBON MONOXIDE METHANOL ACETIC ACID VAM EMULSIONS POWDERS AMERICAS EMEA1 ASIA 6 Competitor 1 Competitor 7 Competitor 5 Competitor 6 Competitor 3 Competitor 4 Competitor 2 Cela
Slide 7: Unique value chain
Unique value chain... Carbon Monoxide Methanol 1 1 Acetic Acid Anhydride & Esters Flexible entry into the market 2 VAM ~70% acid content 3 Emulsions ~30% acid content 4 Powders ~35% acid content 5 Legacy Acetyl Chain Extended Acetyl Chain ...enables flexible product placement and value optimization
Slide 8: Value creation through advantaged technology
Value creation through advantaged technology... ...enables capital efficiency and lowest cost to supply State-of-the-art process technology and intellectual property • Leading technologies with high efficiencies and flexibility 8 Low capital intensity for world-scale production facilities Proprietar
Slide 9: Cost leadership in all scenarios
Cost leadership in all scenarios... ...driven by feedstock optionality, scale and advantaged technology Acid Cost Curve With Low Oil Acid Cost Curve With High Oil C le ar L ak e S in ga po re N an jin g C le ar L ak e E xp an si on C le ar L ak e S in ga po re N an jin g Americas & EMEA AOC1 China N
Slide 10: Leading cost positions in import markets
Leading cost positions in import markets Landed Europe Europe Based on internal estimates of average landed cost into key regions Celanese In-region producers Incremental importers Southeast Asia Landed Southeast Asia 10
Slide 11: Strong demand recovery driving improved utilization
Strong demand recovery... ...driving improved utilization Based on internal estimates 1 Utilization reflecting industry nameplate capacity at typical on-stream rates; includes impact of instantaneous outage activity. Capacity overbuild in Asia Short-term demand dislocation Recovery to healthy market
Slide 12: Enhanced building and construction portfolio
Enhanced building and construction portfolio Solutions across every product of the chain VAM VAE RDP1 CE Product End Uses • VAE/powder derivatives • Adhesives • Powder derivatives • Adhesives • Paints & coatings • Cement enhancement • Tile grouts • Insulation & membranes • Repairs & upgrades Renders
Slide 13: Solar power accelerates Asia vinyls demand
Solar power accelerates Asia vinyls demand Solar PV cells require high quality EVA 15% solar CAGR from 2019 to 2030 Celanese can supply additional high quality VAM capacity at lowest capital requirements Based on International Energy Agency Main Case 2010-2022, Sustainable Development Scenario 2025
Slide 14: Investing in high return projects
...to increase base earnings, lower volatility and enable upside capture Q1 2019 2023GLOBAL ACID RECONFIGURATION: New Build at Clear Lake Q1 2021 2023METHANOL EXPANSION: Debottleneck at Clear Lake Q1 2020 2023VAE EMULSION EXPANSION: Debottleneck & New Build at Nanjing and Frankfurt Q1 2021 2022-2023
Slide 15: Enhanced acetic acid project positions for growth
Enhanced acetic acid project positions for growth... CAPITAL EXPENDITURE ~$350M 1,000kt MANUFACTURING FLEXIBILITYANNUALIZED AVERAGE VALUE ~$100M INCREMENTAL CAPACITY 1,300kt Enhanced Asia flexibility with new supply contracts Retention of project value and supply optionality Clear Lake capital effic
Slide 16: Vinyls expansion program creates additional flexibility
16 Vinyls expansion program creates additional flexibility... VAM Expansion Nanjing NEW NANJING VAM CAPACITY90kt NEWEMULSIONSCAPACITY110kt POWDERS UTILIZATION GROWTH40kt Powders Growth Europe & Asia VAE Expansions Nanjing & Frankfurt Solar PV driving acute Asia growth in vinyls chain Proven record o
Slide 17: Focused on driving greater sustainability
...within the Acetyl Chain and for our customers Focused on driving greater sustainability... Acetyl Chain Sustainability Pipeline Sustainable Sourcing CO2 Capture and Recycling Recycled Content • Clear Lake partial solar power supply • Bio-based renewable natural gas feedstock optionality • Clear L
Slide 18: Acetyl Chain financial outlook
Acetyl Chain financial outlook Resilient Global Markets ADJUSTED EBIT MARGIN >22% 2021-2023 >25% 2021-2023 OPERATING EBITDA MARGIN $568 ~$900 $900-1,000 2020 2021F 2023F NET SALES CAGR 5-6% 2019-2023 ADJUSTED EBIT CAGR 2019-2023 18% Adjusted EBIT margin Adjusted EBIT (in millions) 18 1 2 3 4 Unmatch
Slide 19: Celanese
fA Celanese
Slide 20: Multiplying our momentum
MULTIPLYING OUR MOMENTUM