Slide 1: Celanese 3Q 2008 Earnings Conference Call / Webcast
Dave Weidman, Chairman and CEO Steven Sterin, Senior Vice President and CFO Celanese 3Q 2008 Earnings Conference Call / Webcast Tuesday, October 21, 2008 10:00 a.m. ET
Slide 2: Forward Looking Statements, Reconciliation and Use of Non-GAAP Measures
Forward Looking Statements, Reconciliation and Use of Non- GAAP Measures to U.S. GAAP Forward-Looking Statements This presentation may contain "forward-looking statements," which include information concerning the company's plans, objectives, goals, strategies, future revenues or performance, capita
Slide 3: Dave Weidman, Chairman and Chief Executive Officer
Dave Weidman Chairman and Chief Executive Officer
Slide 4: Celanese Corporation 3Q 2008 Highlights
Celanese Corporation 3Q 2008 Highlights in millions (except EPS) 3rd Qtr 2008 3rd Qtr 2007 Net Sales $1,823 $1,573 Operating Profit $151 $147 Adjusted EPS $0.78 $0.73 Operating EBITDA $314 $302
Slide 5: Steven Sterin, Senior Vice President and CFO
Steven Sterin Senior Vice President and CFO
Slide 6: Celanese Corporation Financial Highlights
Celanese Corporation Financial Highlights in millions (except EPS) 3rd Qtr 2008 3rd Qtr 2007 Net Sales $1,823 $1,573 Operating Profit $151 $147 Net Earnings $158 $128 Special Items Other Charges/Adjustments $20 $40 Adjusted EPS $0.78 $0.73 Effective Tax Rate 26% 28% Diluted Share Basis 162.9 167.4 O
Slide 7: Advanced Engineered Materials
in millions 3rd Qtr 2008 3rd Qtr 2007 Net Sales $272 up 5% $258 Operating EBITDA $45 down 36% $70 Advanced Engineered Materials Third Quarter 2008: Increased net sales driven by improved pricing and positive currency effects Increased penetration in value per vehicle and growth in non- automotive ap
Slide 8: Consumer Specialties
Third Quarter 2008: Net sales increase primarily driven by strong pricing and foreign currency effects Higher pricing more than offset slightly lower volumes for the quarter Operating EBITDA increase primarily the result of improved pricing and realized acquisition synergies Consumer Specialties in
Slide 9: Industrial Specialties
Third Quarter 2008: Increase in net sales primarily driven by higher pricing and favorable currency impacts Slight volume increase due to favorable comparison to 2007 which included impacts associated with Clear Lake outage Demand weakness in certain US and European end-markets continues, while Chin
Slide 10: Acetyl Intermediates
Acetyl Intermediates in millions 3rd Qtr 2008 3rd Qtr 2007 Net Sales $1,056 up 22% $864 Operating EBITDA $182 up 2% $178 Third Quarter 2008: Increased net sales driven by higher pricing, increased volumes and favorable currency impacts Volume and pricing strength offset by significantly higher input
Slide 11: Affiliates Continue to Deliver Value
3Q 2007 3Q 2008 YTD 2007 YTD 2008 3Q 2007 3Q 2008 YTD 2007 YTD 2008 Earnings - Equity Investments 24 19 65 46 Dividends - Cost Investments 29 35 93 138 Total affiliate earnings impact of $54 million relatively flat versus prior year Increased dividends from Ibn Sina methanol and MTBE cost affiliate
Slide 12: Strong Cash Generation
Strong Cash Generation Adjusted Free Cash Flow Adjusted Free Cash Flow Adjusted Free Cash Flow in millions YTD 2008 YTD 2007 Net cash provided by operating activities $345 $279 Adjustments to operating cash for discontinued operations ($10) $92 Net cash provided by operating activities from continui
Slide 13: Optimized Leverage Profile
Optimized Leverage Profile Term Loan - $2.8 billion Other Debt Obligations - $803 million Cash - $584 million Net Debt - $3.0 billion Revolver - $650 million Cost Stability Flexibility Structure Characteristics Primary Components Strong balance sheet provides flexibility and stability in current env
Slide 14: Increased Financial Flexibility
Increased Financial Flexibility 2005 2006 2007 3Q YTD East 3.94 4.27 5.94 6.55 Operating EBITDA/Net Interest Stable, Flexible & Low Cost Continued improvement in coverage ratios Advantages of structure: LIBOR +150 bps Term loan maturity not until 2014 1% annual term loan amortization "Covenant-lite"
Slide 15: Appendix
Celanese Appendix
Slide 16: 3Q 2008 Other Charges and Other Adjustments by Segment
3Q 2008 Other Charges and Other Adjustments by Segment $ in millions AEM CS IS AI Other Total Employee termination benefits - - - 7 1 8 Ticona Kelsterbach relocation 3 - - - - 3 Clear Lake insurance recoveries - - - (23) - (23) Asset impairments - - - 21 - 21 Sorbates settlement - - - - (8) (8) Tota
Slide 17: Reg G: Reconciliation of Adjusted EPS
Reg G: Reconciliation of Adjusted EPS
Slide 18: Reg G: Reconciliation of Net Debt
Reg G: Reconciliation of Net Debt
Slide 19: Reg G: Other Charges and Other Adjustments
Reg G: Other Charges and Other Adjustments
Slide 20: Reg G: Reconciliation of Operating EBITDA
Reg G: Reconciliation of Operating EBITDA
Slide 21: Reg G: Equity Affiliate Preliminary Results and Celanese Proportional Share
Reg G: Equity Affiliate Preliminary Results and Celanese Proportional Share - Unaudited