Slide 1: Celanese 1Q 2008 Earnings Conference Call / Webcast
Dave Weidman, Chairman and CEO Steven Sterin, Senior Vice President and CFO Celanese 1Q 2008 Earnings Conference Call / Webcast Tuesday, April 22, 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 1Q 2008 Highlights
Celanese Corporation 1Q 2008 Highlights in millions (except EPS) 1st Qtr 2008 1st Qtr 2007 Net Sales $1,846 $1,555 Operating Profit $234 $206 Adjusted EPS $1.06 $0.77 Operating EBITDA $381 $315 Note: All figures exclude results of the discontinued Edmonton Methanol business.
Slide 5: Committed to Delivering Value Creation
Committed to Delivering Value Creation $350 - $400 million increased EBITDA profile plus EPS potential by 2010 Group Asia Revitalization Innovation Organic Balance Sheet Operational Excellence EBITDA Impact Consumer and Industrial Specialties (CIS) X X X X >$100MM Advanced Engineered Materials (AEM)
Slide 6: Clear Path to 2010 Growth Objectives
2007 2008 2009 2010 AI 20 80 100 120 CIS 44 82 108 130 AEM 25 50 65 110 Operating EBITDA Growth Objectives Clear Path to 2010 Growth Objectives AEM: volume growth > 2X GDP through further penetration CIS: Acetate continues execution on revitalization strategy; Emulsions/PVOH revitalization commences
Slide 7: Steven Sterin, Senior Vice President and CFO
Steven Sterin Senior Vice President and CFO
Slide 8: Celanese Corporation Financial Highlights
Celanese Corporation Financial Highlights in millions (except EPS) 1st Qtr 2008 1st Qtr 2007 Net Sales $1,846 $1,555 Operating Profit $234 $206 Net Earnings $145 $201 Special Items Other Charges/Adjustments $22 $18 Adjusted EPS $1.06 $0.77 Effective Tax Rate 26% 28% Diluted Share Basis 167.3 174.4 O
Slide 9: Advanced Engineered Materials
in millions 1st Qtr 2008 1st Qtr 2007 Net Sales $294 up 12% $262 Operating EBITDA $60 down 10% $67 Advanced Engineered Materials First Quarter 2008: Net sales increase driven by volume growth (6%) and positive currency effects (8%) Growth in China continues to drive results Slight pricing declines d
Slide 10: Consumer Specialties
First Quarter 2008: Net sales increase primarily driven by European acquisition, improved pricing on global demand and favorable currency impacts Pricing more than offset significantly higher energy costs Operating EBITDA improvement also includes acquisition synergies Consumer Specialties in millio
Slide 11: Industrial Specialties
First Quarter 2008: Increase in net sales primarily driven by favorable pricing and foreign currency effects Volumes pressured by continued softness in U.S. housing and construction segments Increased revenues offset raw material cost pressures Industrial Specialties in millions 1st Qtr 2008 1st Qtr
Slide 12: Acetyl Intermediates
Acetyl Intermediates in millions 1st Qtr 2008 1st Qtr 2007 Net Sales $1,096 up 31% $839 Operating EBITDA $246 up 41% $174 First Quarter 2008: Strong global demand sustained higher pricing levels and drove record sales for the quarter Incremental volumes from the Nanjing plant also contributed to inc
Slide 13: Affiliates Continue to Deliver Value
1Q 2007 1Q 2008 1Q 2007 1Q 2008 Earnings - Equity Investments 18 10 Dividends - Cost Investments 15 28 Total affiliate earnings impact improved 15% to $38 million from prior year Increased dividends from Ibn Sina methanol and MTBE cost affiliate more than offset performance of AEM affiliates current
Slide 14: Continued Strong Cash Generation
Continued Strong Cash Generation Adjusted Free Cash Flow Adjusted Free Cash Flow Adjusted Free Cash Flow in millions 1st Qtr 2008 1st Qtr 2007 Net cash provided by operating activities $166 $12 Adjustments to operating cash for discontinued operations $1 $61 Net cash provided by operating activities
Slide 15: 2008 Business Outlook
2008 Business Outlook Continued strong global demand Incremental acetic acid volume associated with China expansion VAM and acetic anhydride production scheduled to begin in Nanjing Prices expected to adjust only modestly in 2008 Acetyl Intermediates Volume growth >2x GDP across both transportation
Slide 16: Update to 2008 Guidance
Affiliate Income increased on strong performance of Ibn Sina Net Interest updated to reflect strong Euro translation on foreign debt Diluted Share Count updated to reflect 1.6 million shares repurchased in 1Q Depreciation and Amortization increased on foreign currency impacts Cash Taxes expected to
Slide 17: Appendix
® Celanese Appendix
Slide 18: 1Q 2008 Other Charges and Other Adjustments by Segment
1Q 2008 Other Charges and Other Adjustments by Segment $ in millions AEM CS IS AI Other Total Employee termination benefits 1 1 1 2 2 7 Plant/office closures - - 2 5 - 7 Ticona Kelsterbach relocation 2 - - - - 2 Total other charges 3 1 3 7 2 16 Business optimization - - 2 - 7 9 Ticona Kelsterbach re
Slide 19: Reg G: Reconciliation of Adjusted EPS
Reg G: Reconciliation of Adjusted EPS
Slide 20: Reg G: Reconciliation of Net Debt
Reg G: Reconciliation of Net Debt
Slide 21: Reg G: Other Charges and Other Adjustments
Reg G: Other Charges and Other Adjustments
Slide 22: Reg G: Reconciliation of Operating EBITDA
Reg G: Reconciliation of Operating EBITDA
Slide 23: Reg G: Equity Affiliate Preliminary Results and Celanese Proportional Share
Reg G: Equity Affiliate Preliminary Results and Celanese Proportional Share - Unaudited