Celanese Corporation · NYSE:CE
Celanese — Merger or Acquisition (December 2020)
12 slides from Celanese's merger presentation, Dec 9, 2020
Slide 1: Celanese to Generate Incremental Shareholder Value Through Restructuring of KEPCO Joint Venture
Celanese to Generate Incremental Shareholder Value Through Restructuring of KEPCO Joint Venture Engineered Materials Well - Positioned to Continue Growth Trajectory December 2020
Slide 2: Disclosures: Forward-Looking Statements
Disclosures Forward - Looking Statements This presentation contains "forward - looking statements," which include information concerning the Company's plans, objectives, g oals, strategies, future revenues, synergies, performance, capital expenditures, financing needs and other information that is n
Slide 3: Summary Highlights
1 Base business excludes affiliate earnings 1 Committed to a multi - year value creation strategy in Engineered Materials (EM), which is more diverse, solutions - oriented, and customer - focused. 2 Celanese (CE) investment in local Asia capabilities in our base business 1 has driven double - digit
Slide 4: Evolution of Engineered Materials
Greater Diversification & Resiliency Regional diversification driven by growth in Asia 1 Greater end market diversification Adj. EBIT increasingly from base business 2 Unparalleled Customer Solutions Breadth of polymers tripled to lead the industry Localized production across more countries Model to
Slide 5: EM Growth in Asia
2 EM Growth in Asia Investment in local capabilities to drive continued growth EM Base Business Growth in Asia (2010 – 2019) 2019 2010 Joint Venture Led Presence (1960 – 2009) 22% 14% 10% or less Asia Percentage of EM Net Sales EM Asia Net Sales 1 $533 M $152 M ~$100 M or less Net sales CAGR of 15%,
Slide 6: KEPCO Background and Performance
• KEPCO formed in 1987 as a standalone production and marketing JV • CE acquired 50% ownership stake in KEPCO in 1999, joining Mitsubishi Gas Chemical Company, Inc. (MGC) (40%) and Mitsubishi Corporation (10%) • KEPCO is a leading producer of POM with sites in South Korea, including a world - scale
Slide 7: Restructuring to Create Significant Value
KEPCO Strengths Leveraged CE maintains JV governance rights Maintains product development and manufacturing expertise, including a world - scale, highly cost - efficient POM polymerization facility Stronger Engineered Materials EM access to 70kt of low - cost POM production in Asia with correspondin
Slide 8: Unparalleled Global POM Polymerization Network
4 Unparalleled Global POM Polymerization Network KEPCO restructuring provides world - scale Asia capacity 8 Restructured JV opens meaningful synergy opportunities to EM Al Jubail, SA Ibn Sina (50kt capacity 1 ) Bishop, TX (110kt capacity) CE 100% Owned CE JV Frankfurt, Germany (180kt capacity) Ulsan
Slide 9: Financial Impact of KEPCO Restructuring
5 Financial Impact of KEPCO Restructuring Slight immediate accretion to adjusted EBIT and adjusted EPS in 2021 9 KEPCO Impact to CE Explanation 2019 Actuals 2019 Pro Forma 1 (In millions) KEPCO Equity Earnings 2 $27 $0 – 5 Pre: CE 50% share of JV earnings Post: CE 50% share of JV earnings reduced to
Slide 10: Appendix
Appendix
Slide 11: Non-GAAP Definitions
Non - GAAP Definitions Adjusted EBIT is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Co rpo ration, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense and
Slide 12: Reconciliation to U.S. GAAP
Reconciliation to U.S. GAAP 12 EM Supplemental Segment Data and Reconciliation of Non - GAAP Measures – Unaudited Source: Non - GAAP Financial Measures – available in the ‘Financial Information’ section of Celanese Investor Relations website. Note: Adjusted EBIT and Adjusted EBIT Margin are non - GA