Celanese Corporation · NYSE:CE
Celanese — Q2 2018 Earnings Presentation
10 slides from Celanese's earnings presentation, Jul 19, 2018
Slide 1: Celanese Q2 2018 Earnings
Exhibit 99.1(b) Celanese Q2 2018 Earnings Thursday, July 19, 2018 Conference Call / Webcast Friday, July 20, 2018 10:00 a.m. Eastern Time Mark Rohr, Chairman and Chief Executive Officer Scott Richardson, SVP and Chief Financial Officer © Celanese Celanese Corporation 1
Slide 2: Important Information: Forward-Looking Statements
Important Information 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
Slide 3: Recent Highlights
Recent Highlights • Initiated the closure of the acetate tow manufacturing unit in Ocotlán, Jalisco, Mexico. The consolidation will strengthen competitive positioning, reduce costs, and align production capacities with anticipated industry demand. • Commercialized 733 Engineered Materials projects i
Slide 4: Opportunity Pipeline Examples
Opportunity Pipeline Examples Automotive Retainers & Fasteners Surgical Instruments • Higher engine temperatures and repeated heating and • Miniaturization and portability trends in healthcare cooling challenge the durability of traditional materials necessitate multi-functional design materials • C
Slide 5: Celanese Corporation Q2 2018 Highlights
Celanese Corporation Q2 2018 Highlights Q2 Performance Factors Affecting Net Sales Net sales (in millions) Total segment income margin 24% $2,000 $1,851 $1,844 30% 20% $1,510 16% $1,500 25.6% 26.6% 12% 21.6% 20% 8% $1,000 4% 10% 0% $500 -4% $0 0% Volume Price Currency Other Total Q2 2017 Q1 2018 Q2
Slide 6: Engineered Materials
Engineered Materials Q2 Performance Factors Affecting Net Sales Net sales (in millions) Total segment income margin $800 22% $665 $664 40% 17% $600 $546 12% $400 27.5% 27.4% 26.4% 7% 20% $200 2% -3% $0 0% Volume Price Currency Other Total Q2 2017 Q1 2018 Q2 2018 QoQ YoY QoQ Segment income highlights
Slide 7: Acetate Tow
Acetate Tow Q2 Performance Factors Affecting Net Sales Net sales (in millions) Total segment income margin 5% $200 60% $163 $168 $162 46.4% 47.5% 43.6% 40% 0% $100 20% -5% $0 0% Volume Price Currency Other Total Q2 2017 Q1 2018 Q2 2018 QoQ YoY QoQ Segment income highlights YoY Segment income highlig
Slide 8: Acetyl Chain
Acetyl Chain Q2 Performance Factors Affecting Net Sales Net sales (in millions) Total core income margin 30% $1,200 $1,051 $1,049 30% 25% $1,000 20% $826 26.4% $800 24.1% 20% 15% $600 10% 16.0% $400 10% 5% 0% $200 -5% $0 0% Volume Price Currency Other Total Q2 2017 Q1 2018 Q2 2018 QoQ YoY QoQ Core i
Slide 9: Cash Flow
Cash Flow Free Cash Flow Q2 2018 (in millions) $585 • Operating cash flow of $585 million $600 $500 • Highest ever free cash flow of $500 million; $500 expect in excess of $1 billion for the year $400 $349 $283 $285 $298 • Net capital expenditures of $79 million; $300 $240 $193 expect 2018 to be $32
Slide 10: Returning Cash to Shareholders
Returning Cash to Shareholders Dividend Payout and Share Repurchases Share Repurchases • Deployed $100 million in Q2 2018 to $800 $741 $701 $700 repurchase ~0.9 million shares $594 $600 • Plan to repurchase ~$1.0 billion worth of $500 shares over 3-year period through 2020 $394 $400 Dividend $300 $2