Celanese Corporation · NYSE:CE
Celanese — Investor Day (March 2021)
23 slides from Celanese's investor day presentation, Mar 25, 2021
Slide 1: Engineered Materials
Engineered Materials Tom Kelly
Slide 2: Improving the world and everyday life
Improving the world and everyday life Electronics Automotive Medical Small Appliance Consumer Packaging Industrial 2
Slide 3: Themes you will hear today
PROJECT PIPELINE MODEL CONTINUES TO DIFFERENTIATE EM; DIGITALIZATION STRENGTHENS THE MODEL BY INCREASING SCALABILITY, PREDICTABILITY GROWTH FOCUSED PROGRAMS IN FUTURE MOBILITY, MEDICAL AND CONNECTIVITY POSITION EM FOR OUTSIZED GROWTH AN EXPANDED PORTFOLIO OF SUSTAINABLE OFFERINGS ENABLES GROWTH IN E
Slide 4: A broad portfolio and application expertise drive outsized, innovation-led growth
A broad portfolio and application expertise… …drive outsized, innovation-led growth Automotive Broad Polymer Portfolio Industry Leading Technical Competencies 2020 Net Sales Formulation Development Part & Tool Design Prototyping Part Processing Testing & Analytical Customer Trials Application Develo
Slide 5: Strategic acquisitions and JV actions add to capabilities set and maximize shareholder value
…add to capabilities set and maximize shareholder value Strategic acquisitions and JV actions... HIGH GROWTH GEOGRAPHY SOLUTION SET KEY END MARKET EXPERTISE ENABLING COMPETENCIES NILIT Plastics Bolstered solution offering and global reach Reduced EM adjusted EBIT from affiliate earnings by half to ~
Slide 6: Continuous innovations to expand solution set
Continuous innovations to expand solution set... Celanese Custom Applications LI-ION 5G UV New in 2020 ...enable growth in new markets 6
Slide 7: Pipeline model reinforced by growth programs drives growth rates far above the market
…drives growth rates far above the market Pipeline model reinforced by growth programs… R ev en ue / E ar ni ng s (T0-18 months) • Disruptive trends • Growth and profit focus • New to CE / new to customers • Technology roadmaps • Unmet customer needs • Customized material development • Curated oppor
Slide 8: NEXT Model and growth programs lift EM earnings 13-17% per year through 2023
...13-17% per year through 2023 1Excludes Earnings from Affiliates 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Adjusted EBIT (base business)1 Adjusted EBIT margin Project Pipeline & Acquisitions Growth ProgramsPre-Opportunity Pipeline >25% Softer Nilit Omni Asia growth through localizatio
Slide 9: Opportunity model continues to be foundational
Leveraging years of pipeline data to make model more efficient and predictive Opportunity model continues to be foundational Customer Engagement Model Generating Projects Daily Projects to be Implemented and Extended at Customers Projects Aggregated, Prioritized & Executed Projects We Can Win Expert
Slide 10: Model evolves to support continued innovation and remained strong through market disruption
…and remained strong through market disruption Model evolves to support continued innovation... 35% win rate 10% CAGR Implement New Model Debottleneck Model SC A LE T H E M O D E L 47% win rate 16% increase in peak net sales per projectD E LI VE R IN G G R O W TH (P ea k N et S al es )1 TARGETING in
Slide 11: Growth programs and technology innovation make EM future ready
Growth programs and technology innovation make EM future ready Programs aligned with mega trends Elements of program that enable growth Connectivity Dedicated Program Teams Forward Looking Objectives Aligned Technology & Product Roadmaps Voice-of-Customer Driven Approach 5G Future Mobility Medical S
Slide 12: Opportunities in future mobility expand the scope for EM solutions
Opportunities in future mobility expand the scope for EM solutions Safe navigation Advanced Driver Assistance Systems Lighter and safer Electric vehicle powertrain GUR exceptionally well-positioned in lithium-ion battery separator (LiBS) market CE PEER 1 PEER 2 PEER 3 Number of opportunities with ne
Slide 13: Focused EV program driving growth beyond industry fundamentals
Focused EV program driving growth beyond industry fundamentals... ...with >10% growth in auto business from 2020-2023 RECOVERY IN AUTO BUILDS (CAGR 2020-2023F) GROWING ADDRESSABLE POLYMER CONTENT (kilos per vehicle) (2020) GROWTH IN EM ACCESSIBLE POLYMER MARKET 2020 Internal Combustion Engine Hybrid
Slide 14: Broad medical-pharma capabilities enable a range of therapeutic solutions
Broad medical-pharma capabilities... Therapeutic AreasCapabilities • Customized POM, GUR, PBT, LCP, EVA grades • Certified biocompatibility grades • Design assistance • Analytical testing • Moldflow® for modeling and analysis • Processing support • Regulatory support • Pharma lab feasibility service
Slide 15: VitalDose success in drug delivery systems creating new opportunities for future growth
VitalDose® success in drug delivery systems... Industry Focus Improved Efficacy Patient-centered Treatments Fewer Interventions Value-based Healthcare Controlled Release Dynamics D yn am ic D ru g C on ce nt ra ti on Maximum Effective Concentration Minimum Effective Concentration VitalDose® Controll
Slide 16: Connectivity
Connectivity
Slide 17: Multiple mega trends are enabled by 5G
Multiple mega trends are enabled by 5G... ...driving demand for high-value, tailored solutions …are creating new design requirements Improved reliability Enable smaller and higher performance antenna Broad bandwidth Part consolidation Weight reduction Improved signal integrity EMI shielding Smart Ci
Slide 18: Customizing LCP to meet unique design requirements
Customizing LCP to meet unique design requirements… Celanese 5G Technology Roadmap D ie le ct ri c C on st an t, D k Dissipation Factor, Df Commercial LCP & PPS ~7 ~ Dk:<3 Dk:<20 Ultra Low Df Zenite® LCP Low Dk Zenite® LCP/ Fortron® PPS High Dk Zenite® LCP Pipeline Growth1 2018 2019 2020 ...across m
Slide 19: Growing portfolio of sustainable offerings to meet exponential global demand expansion
…to meet exponential global demand expansion Growing portfolio of sustainable offerings… SEGMENTS CURRENT END MARKETS Pipeline Growth1APPROACH CELANESE SOLUTION NEW END MARKETS Highly specified performance polymer Standard polymer Single-use plastics Reduced CO2 footprint Recycled content Biodegrada
Slide 20: Investing in Asia localization to support innovation and deliver out-sized growth
...to support innovation and deliver out-sized growth Investing in Asia localization... Asia Sales Volume 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Local Development Local Supply Winning with Local Innovators Commercial Excellence 2012- 2020 18% CAGR 2010-20 Production output In capital
Slide 21: Engineered Materials financial outlook
>25% Adjusted EBIT (in millions) $403 ~$550 $700-750 2020 ~10% 2021-2023 13-17% 2021-2023 Engineered Materials financial outlook Sustainable Portfolio >30% 2023 19% Adjusted EBIT margin 1 2 3 4 Enhanced Pipeline Model Growth Programs Asia Localization 21
Slide 22: Multiplying our momentum
Slide 23: Multiplying our momentum
MULTIPLYING OUR MOMENTUM