Celanese Corporation · NYSE:CE
Celanese — Q2 2005 Earnings Presentation
16 slides from Celanese's earnings presentation, Aug 9, 2005
Slide 1: Celanese 2Q 2005 Earnings
Second Quarter Earnings Celanese 2Q 2005 Earnings NYSE: CE Conference Call/Webcast Tues., August 9, 2005 10 a.m CT David Weidman, CEO C.J. Nelson, CFO 1
Slide 2: Forward-Looking Statements
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, capital expenditures, financing needs and other information that is not historical informati
Slide 3: Reconciliation of Non-GAAP Measures to U.S. GAAP
Reconciliation of Non-GAAP Measures to U.S. GAAP This release reflects three performance measures, net debt, adjusted EBITDA, and diluted adjusted earnings per share as non-U.S. GAAP measures. The most directly comparable financial measure presented in accordance with U.S. GAAP in our consolidated f
Slide 4: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information Adjusted EBITDA, a measure used by management to measure performance, is defined as earnings (loss) from continuing operations, plus interest expense net of interest income, income taxes and depreciation and amortization, and further adjusted for certain cash an
Slide 5: David Weidman, President and Chief Executive Officer
David Weidman President and Chief Executive Officer 5
Slide 6: Strong Underlying Business Results
Strong Underlying Business Results (in $millions) 2nd Qtr 2005 Sales $1,517 up 23% Operating Profit $152 up 508% Adjusted Diluted EPS $0.53 Dividends from Equity & Cost Investments $17 Adjusted EBITDA $283 up 51% > Expansion of operating profit and strengthened cash position > Higher pricing on stro
Slide 7: C. J. Nelson, Executive Vice President and Chief Financial Officer
C. J. Nelson Executive Vice President and Chief Financial Officer 7
Slide 8: Financial Highlights
Financial Highlights in $ millions (except per share data) 2nd Qtr 2005 2nd Qtr 2004 Net sales 1,517 1,229 Operating Profit 152 25 SG&A (136) (125) Net Earnings (Loss) 67 (124) Basic EPS 0.41 n.m. Special Items Refinancing expenses - - Special charges 27 (1) Non-Operating Foreign Exchange (14) - Adj
Slide 9: Chemical Products
Chemical Products (in $millions) 2nd Qtr 05 Sales $1,085 up 34% Segment Earnings(1) $149 up 338% Second Quarter: > Significant price increases on robust demand, high industry capacity utilization > Pricing more than offset higher raw material costs Outlook: > Continued favorable market conditions in
Slide 10: Technical Polymers Ticona
Technical Polymers Ticona (in $millions) 2nd Qtr 05 Sales $223 up 1% Segment Earnings(1) $22 down 15% Second Quarter: > Successfully implemented price increases – offset higher raw material and energy costs > Weakened POM sales, primarily Europe and automotive sector > 2005 results include $20 milli
Slide 11: Acetate/Performance Products Summaries
Acetate/Performance Products Summaries (in $millions) 2nd Qtr 05 Sales $183 up 6% Segment Earnings(1) $12 down 14% Acetate > Strong results on higher volumes, pricing and productivity improvements > China venture expansions moving forward > Restructuring of operations on schedule, temporary higher m
Slide 12: Significant Contribution from Equity and Cost Investments
Significant Contribution from Equity and Cost Investments • 2004 Full Year dividends = $77 million • 2005 expected to be $120 - 130 million • 3Q dividends expected to be $45 million Income Statement Cash Flow 60 60 50 50 50 14 40 40 29 30 30 25 22 18 7 14 19 17 20 20 6 13 36 6 7 7 10 18 10 7 Cash Fl
Slide 13: Equity Investments Summary
Equity Investments Summary Summary-equity investments US $Million (unaduited) 2004 2003 2002 Total Celanese's Total Celanese's Total Celanese's Results Share Results Share Results Share Net Sales $ 2,849 $ 1,163 $ 2,134 $ 824 $ 1,735 $ 648 Depreciation and Amortization $ 134 $ 52 $ 131 $ 51 $ 122 $
Slide 14: Capitalization
Capitalization (in $millions) December 31, March 31, June 30, 2004 2005 2005 Cash 838 1,738 959 Senior Credit Term Loan 624 1,750 1,725 Delayed Draw Term Loan - - - Floating Rate Term Loan 350 - - Total Senior Debt 974 1,750 1,725 Senior Sub Notes ($) 1,231 800 800 Senior Sub Notes (€ - 6/30/05 tran
Slide 15: Combined Business Outlook
Combined Business Outlook 3rd Quarter > Adjusted EPS to increase to $0.45 - $0.50 > Includes $15 million pre-tax in special charges and $15 million for Acetex debt redemption > Includes impact of Acetex consolidation for two months Full Year 2005 > Adjusted EPS to increase to $1.90 to $2.00 – up fro
Slide 16: Full Year 2005 Key Modeling Assumptions
Full Year 2005 Key Modeling Assumptions Income Statement Equity – CE Shares ($ millions) • Common stock = 158.5 million outstanding • Depreciation = $250-$270 • Potentially dilutive securities as of 6/30: • Special charges = $100-$110 • Interest expense = $290-$300 • 12 million shares – converted pr