Celanese Corporation · NYSE:CE
Celanese — Investor Day (May 2009)
174 slides from Celanese's investor day presentation, May 11, 2009
Slide 1: Celanese Corporation - 2009 Investor Day
Celanese Corporation - 2009 Investor Day May 11, 2009 Exhibit 99.2
Slide 2: Agenda: Celanese Corporation 2009 Investor Day
12:00 p.m. Registration 1:00 p.m. Introduction/Agenda Mark Oberle, Vice President, Investor Relations and Public Affairs 1:05 p.m. Pursue. Premier. Levers of Value David Weidman, Chairman & CEO 1:30 p.m. Operational Excellence Jim Alder, Senior Vice President, Manufacturing, Operations & Technical J
Slide 3: Forward Looking Statements and Use of Non-GAAP Measures
Forward Looking Statements, Reconciliation and Use of Non-GAAP Measures to U.S. GAAP 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 ne
Slide 4: David Weidman, Chairman and CEO
Celanese Corporation David Weidman Chairman and Chief Executive Officer
Slide 5: Celanese diversified portfolio delivers shareholder value
Celanese ($ million) 2008 Revenue: $6,823 2008 Operating EBITDA: $1,169 Consumer Specialties 2008 Revenue: $1,155 2008 Operating EBITDA: $293 Advanced Engineered Materials 2008 Revenue: $1,061 2008 Operating EBITDA: $170 Industrial Specialties 2008 Revenue: $1,406 2008 Operating EBITDA: $117 Acetyl
Slide 6: Portfolio of leading franchises
A global leader Advantaged technology Superior cost position Acetyl Intermediates (Acetic Acid, Vinyl Acetate Monomer, Acetyl Derivatives) Stable cash generation Industry-leading partnerships Growth opportunities in Asia Consumer Specialties (Acetate Flake and Tow, High Intensity Food Sweetener) Ups
Slide 7: Celanese Strategic Pillars
Divest non-core assets and revitalize underperforming businesses Aggressively align with our customers and their markets to capture growth Participate in businesses where we have a sustainable competitive advantage Leverage and build on advantaged positions that optimize our portfolio FOCUS GROWTH R
Slide 8: History of earnings power improvement
History of earnings power improvement Normalized trough earnings more than double previous trough profile Previous Trough Portfolio Optimization Productivity Growth Current Normalized Trough Base 400 600 800 Bookends 400 1000 200 200 200 Trough Improvement $300-400 million $800-1,000 million Portfol
Slide 9: Hybrid business model drives earnings power
Hybrid business model drives significant earnings power Business Model Product/Chemistry IS Business Model Product/Chemistry Specialty Commodity Specialty/ Differentiated Commodity Specialty Commodity Commodity The model...not the molecule Celanese Portfolio Industry Examples Specialty/ Differentiat
Slide 10: 2006-2010 Strategic Objectives
2006-2010 Strategic Objectives designed to increase the earnings power of Celanese Operating EBITDA 2006 Base Productivity Growth 2010 Strategic Objectives Base 1100 1250 Add Add 150 250 Total 1100 1500 2006 - 2010 Strategic Objectives ~$1,100 million $1,400-1,500 million $350 - 400 million Operatin
Slide 11: Strategic Objectives: defined actions
Strategic Objectives defined actions to deliver value creation Group Group Productivity Productivity Growth Growth Growth Balance Sheet EBITDA Impact Group Group Operational Excellence Revitalization Asia Innovation Organic Balance Sheet EBITDA Impact Industrial Specialties X X X X X >$50MM Consumer
Slide 12: Strategic Objectives: significant progress made
Strategic Objectives: significant progress made Group Group Productivity Productivity Growth Growth Growth Balance Sheet EBITDA Impact Group Group Operational Excellence Revitalization Asia Innovation Organic Balance Sheet EBITDA Impact Industrial Specialties X X X X X >$50MM Consumer Specialties X
Slide 13: Global recession impacts offset progress
Global recession impacts offset Strategic Objectives' progress 2006 Base Productivity Growth Recessionary Trends Normalized Trough Base 1100 1250 900 Add Add 150 250 600 Total 1100 900 2006 - 2010 Strategic Objectives $350 - 400 million ~$1,100 million $800-1,000 million Earnings power improvement r
Slide 14: Why Celanese? Why Celanese Now?
Balanced footprint in key regions Recovering conditions in key end-use industries Attractive balance sheet with strong cash generation Geographic Demand Capital Structure Sustainable fixed spending reductions Efficient and scalable capital Global macro trends driving customer growth Operating Innova
Slide 15: Advantaged debt provides capital structure leverage
Advantaged debt provides Capital Structure leverage Stable, Flexible & Low Cost 2009 2010 2011 2012 2013 Thereafter East 81 100 89 65 73 300 3,000 100 Long-Term Debt Repayment Stable, flexible and low cost capital structure Advantages of structure: LIBOR plus 150 - 175 bps Term loan maturity not unt
Slide 16: Why Celanese? Why Celanese Now?
Economic Recovery Earnings Power Expansion Celanese Advantages Celanese Levers of Value Why Celanese? Why Celanese Now? Balanced footprint in key regions Recovering conditions in key end-use industries Attractive balance sheet with strong cash generation Geographic Demand Capital Structure Sustainab
Slide 17: Diversified end-use exposure captures demand recovery
Note: End-use market breakdown based on 2008 gross sales Other 10% Construction 5% Paints & Coatings 15% Automotive 8% Consumer & Medical Applications 10% Filter Media 15% Consumer & Industrial Adhesives 10% Textiles 6% Food & Beverage 5% Chemical Additives 6% Paper & Packaging 5% Performance Indust
Slide 18: Leading global positions in key end-use applications
Leading global positions in key end-use applications capture demand recovery AMERICAS EU ASIA Projected CAGR: 2009-2012 Electronics 4-5% 3-5% 7-10% Paints & Coatings 3-4% 2-3% 10-12% Auto 12-13% 8-9% 10-12% Source: March 2009 Global Insight forecast; Celanese internal estimates Global growth rates e
Slide 19: Why Celanese? Why Celanese Now?
Economic Recovery Earnings Power Expansion Why Celanese? Why Celanese Now? Balanced footprint in key regions Recovering conditions in key end-use industries Attractive balance sheet with strong cash generation Geographic Demand Capital Structure Sustainable fixed spending reductions Efficient and sc
Slide 20: Leadership in mature and emerging regions
Leadership in mature and emerging regions AMERICAS AEM Diversified portfolio and leader in specified applications CS Leading producer of acetate flake/tow IS Growing innovation pipeline and portfolio AI Integrated Acetyl producer with leading global customer relationships EU AEM Customer-focused inn
Slide 21: Demand growth plans in Asia robust and achievable
Demand growth plans in Asia robust and achievable Source: Celanese internal estimates; Current is based on 2008 actual sales less currency effect in Europe Americas Europe Asia Current 2147 2532 1742 Recovery 224 150 1212 Total Revenue: Current to Recovery Recovery Recovery Recovery Capacity in Asia
Slide 22: Why Celanese? Why Celanese Now?
Economic Recovery Earnings Power Expansion Why Celanese? Why Celanese Now? Balanced footprint in key regions Recovering conditions in key end-use industries Attractive balance sheet with strong cash generation Geographic Demand Capital Structure Sustainable fixed spending reductions Efficient and sc
Slide 23: Celanese technologies enable customer innovation
Celanese technologies enable customer innovation and drive enhanced growth opportunities Celanese Link Between Customer and Trends Emerging Economies Child health standards Clean water Safety and Security Affordable transportation Higher housing standards Environment Fuel efficiency Alternative ener
Slide 24: Why Celanese? Why Celanese Now?
Economic Recovery Earnings Power Expansion Why Celanese? Why Celanese Now? Balanced footprint in key regions Recovering conditions in key end-use industries Attractive balance sheet with strong cash generation Geographic Demand Capital Structure Sustainable fixed spending reductions Efficient and sc
Slide 25: Fixed spending reductions position portfolio to expand earnings
2004 - 2008 2009 - 2010 Capital Efficient utilization Sustain "High Return" Productivity Projects Manufacturing footprint Purchasing Labor optimization New Opportunities Fixed Cost Reduction 6% per year reduction ($400 million in 4 years) Increase Sustainable reductions provide significant operating
Slide 26: Fixed Costs
Fixed Costs* * Fixed costs exclude energy and depreciation; FX adjusted; 2004 is pro forma of current portfolio Additional earnings power by 2011 (8%)/yr Culture of execution Track record of success High return projects 2.0 1 2 2004 1.6 2008 1.35 2010 Target $ billion (6%)/yr Continuous, not periodi
Slide 27: Levers build significant earnings power of the portfolio
Levers build significant earnings power of the portfolio Earnings power of portfolio expected to increase by $250 - $350 million above previous commitments Economic Recovery Economic Recovery Economic Recovery Expanded Earnings Power Expanded Earnings Power Expanded Earnings Power Group Capital Stru
Slide 28: Increased earnings power drives shareholder value
Increased earnings power drives significant shareholder value Operating EBITDA 2006 Base Productivity Growth Recessionary Trends Normalized Trough Economic Recovery Operating Lever Innovation Lever Recovery Base 1100 1250 900 900 1500 1650 Add Add 150 250 600 600 150 150 Total 1100 900 1800 2006 - 2
Slide 29: Celanese Operational Excellence
Celanese Operational Excellence Jim Alder and John Wardzel
Slide 30: Celanese Operational Excellence
Celanese Operational Excellence Culture of Execution Cycle of sustainable improvement Corporate Sustainability Excellence in safety and environmental Track Record of Performance Continuous, not periodic, productivity Significant Actions Today Sustainable fixed cost reduction Better Positioned for Re
Slide 31: Celanese Operational Excellence
Celanese Operational Excellence Culture of Execution Cycle of sustainable improvement Corporate Sustainability Excellence in safety and environmental Track Record of Performance Continuous, not periodic, productivity Significant Actions Today Sustainable fixed cost reduction Better Positioned for Re
Slide 32: Our culture of execution
Our culture of execution New Tools & Processes Six Sigma & Lean Digitization Manufacturing Work Practices Stretch Goals EBITDA Productivity & Growth Safety & Environmental Fixed / Working Capital Gap (versus) Entitlement Industry Benchmarks Management & Shareholder Expectations Performance "Quick Wi
Slide 33: Our culture of execution - Finance organization
Previous 4th quartile performance Implemented 5-day close, systems consolidation, SOX digitization, & shared services center in Budapest Currently top quartile Streamlining organization and standardizing global processes Migrating next wave of activities to Budapest - beyond transactional Targeting
Slide 34: Our culture of execution - Safety culture
Previous "average" performance Launched ALERT, setting high management expectations Achieved "top quartile" OSHA incident rate Our culture of execution - Safety culture Drives sustainable improvement in safety Cycle 2: 2007 - 2008 Tools & Processes Stretch Goals Gap Performance Benchmarked "top quar
Slide 35: Celanese Operational Excellence
Celanese Operational Excellence Culture of Execution Cycle of sustainable improvement Corporate Sustainability Excellence in safety and environmental Track Record of Performance Continuous, not periodic, productivity Significant Actions Today Sustainable fixed cost reduction Better Positioned for Re
Slide 36: 2008 Safety Performance and corporate sustainability
2008 Safety Performance Corporate sustainability One of the top performers in the chemical industry Annualized Reduction Goals Set aggressive 2010 energy and environmental reduction targets . . . and meet them Winner of ACC's Responsible Care Energy Efficiency Award Company OIR LTIR Hours CE 0.26 0.
Slide 37: Excellence in energy and environmental reduction
Corporate sustainability Excellence in energy and environmental reduction 2001 2002 2003 2004 2005 2006 2007 Current 0.904 0.843 0.823 0.925 0.758 0.696 0.654 0.624 0.46 North 45.9 46.9 45 43.9 Accomplishments: 2005 - Current 41% reduction in energy use >$200 million savings per year Reduction in En
Slide 38: World-class technology drives step change improvements
Corporate sustainability Excellence in energy and environmental reduction; World-class technology drives "step change" improvements Strategic Economic SUSTAINABLE Past Future Pampa Nanjing Timing Shutdown plant 12/08 Start-up mid 2007 Technology 60 year old butane oxidation World-class AOPlus(r) Ene
Slide 39: Celanese Operational Excellence
Celanese Operational Excellence Culture of Execution Cycle of sustainable improvement Corporate Sustainability Excellence in safety and environmental Track Record of Performance Continuous, not periodic, productivity Significant Actions Today Sustainable fixed cost reduction Better Positioned for Re
Slide 40: Track record of performance: efficient use of cash
Track record of performance Efficient use of cash - Our Six Sigma culture ensures "capital is the vehicle of last resort" Aligned with Strategic Pillars Cost Reduction: <2 year simple payback Growth: <4 year simple payback 20% - >50% return Investment Criteria Growth Projects Acquisitions Share Buy-
Slide 41: Efficient use of cash: maintain plant spending
Efficient use of cash $100 million per year to maintain plants 2004 2005 2006 2007 2008 2009 Forecast Maintain Plant 86 98 98 115 126 95 Productivity 75 40 30 32 67 37 Other Growth 35 28 55 8.5 29.2 22 Nanjing 13 47 69 147.5 40.8 5 Note: Not including Kelsterbach plant relocation Maintain plant Capi
Slide 42: Capital spending balance for high return projects
Efficient use of cash Balance for "high return" productivity and capital efficient growth 2004 2005 2006 2007 2008 2009 Forecast Maintain Plant 86 98 98 115 126 95 Productivity 75 40 30 32 60 37 Other Growth 35 28 55 8.5 29 22 Nanjing 13 47 69 147.5 51 5 Note: Not including Kelsterbach plant relocat
Slide 43: Productivity projects average simple payback
Efficient use of cash Productivity projects average 1 to 2 year simple payback 2004 2005 2006 2007 2008 Continuous productivity - Manufacturing work practices Examples of Strategic Productivity Projects Investment (capital & expense) $220 million Savings (average) $185 million Simple Payback 1.2 yea
Slide 44: Year-over-year improvement validated
Track record of performance Year-over-year improvement validated to reflect bottom-line impact $170 million per year average the past five years Value from: Fixed cost reduction Energy usage reduction Raw material yield improvement Strategic sourcing projects Continuous, not periodic, productivity $
Slide 45: Track record of performance: fixed costs
Track record of performance 2004 2008 2011 - Target Fixed Costs * 2.03 1.6 1490 Note: Fixed costs exclude energy, fixed distribution and depreciation; FX adjusted; 2004 is pro forma of current portfolio. $400 million reduction in fixed costs in 4 years 2004 1H 2008 Annualized 2011 - Target Fixed Cos
Slide 46: Celanese fixed cost versus industry peers
Track record of performance Celanese Fixed Cost Versus Industry Peers* Good progress, but still opportunities to achieve our best-in-class targets 2004 20 30 10 40 25 50 50 2008 6 25 65 10 25 20 25 North 45.9 46.9 45 43.9 Manufacturing - Personnel & Maintenance Manufacturing - Other Costs Business S
Slide 47: Celanese Operational Excellence
Celanese Operational Excellence Culture of Execution Cycle of sustainable improvement Corporate Sustainability Excellence in safety and environmental Track Record of Performance Continuous, not periodic, productivity Significant Actions Today Sustainable fixed cost reduction Better Positioned for Re
Slide 48: Significant actions today
Significant actions today 2004 - 2008 2009 - 2010 Capital Efficient utilization Sustain "High Return" Productivity Projects Manufacturing footprint Purchasing Labor optimization New Opportunities Fixed Cost Reduction 6% per year reduction ($400 million in 4 years) Increase Increase our track record
Slide 49: Capital spending reduction in 2009
Capital Spending by Category Significant actions today >30% reduction in 2009 capital spending 2004 2005 2006 2007 2008 2009 Forecast Maintain Plant 86 98 98 115 126 105 Productivity 75 40 30 32 60 26 Other Growth 35 28 55 8.5 29 22 Nanjing 13 47 69 147.5 51 16 Note: Not including Kelsterbach plant
Slide 50: Continued high return productivity projects
Significant actions today Continued "high return" productivity projects 2008 2009 2010 2011 Continuous productivity - Human resources Examples of Current Strategic Projects Continuous productivity - Supply chain and logistics Manufacturing footprint - Acetyls Continuous productivity - IT Labor optim
Slide 51: 2009 annualized fixed cost reduction
2009 Annualized Fixed Cost Reduction Significant actions today 50% increase over historical sustainable fixed cost reductions 2001 2002 2003 2004 2005 2006 2007 2008 2004 - 2008 Average Original Estimate Additional Actions Current Estimate Additional Temporary Savings 110 275.3 Fixed cost reduction
Slide 52: Sustainable fixed cost reduction: $250 million by 2010
Significant actions today Note: Fixed costs exclude energy and depreciation; FX adjusted; 2004 is pro forma of current portfolio Sustainable fixed cost reduction: $250 million by 2010 Drive all functions toward best-in-class Optimize manufacturing footprint Increase activities in labor optimization
Slide 53: Additional opportunities beyond 2010
Sustainable fixed cost reduction Additional opportunities beyond 2010 2004 20 30 10 40 25 50 50 2008 6 25 65 10 25 20 25 2011 29 10 15 10 10 20 15 Manufacturing - Personnel & Maintenance Manufacturing - Other Costs Business SG&A Finance IT HR Supply Chain *Based on multiple benchmarking sources and
Slide 54: Celanese Operational Excellence
Celanese Operational Excellence Culture of Execution Cycle of sustainable improvement Corporate Sustainability Excellence in safety and environmental Track Record of Performance Continuous, not periodic, productivity Significant Actions Today Sustainable fixed cost reduction Better Positioned for Re
Slide 55: Capital efficient plant in Nanjing
Celanese Nanjing Integrated Complex Better positioned for recovery Low Capital Total investment: $300-350 million High Returns $600-800 million in revenue $120-150 million in EBITDA Expandable Can double capacity of three units for ~1/3 of their initial capital AEM liquid crystal polymer (LCP) unit
Slide 56: Capital efficient increases in production capacity
Better positioned for recovery Capital efficient increases in existing production capacity 2006 Six Sigma and Lean Shutdown UK Facility Manufacturing Digitization Process Optimization Future State Leer 100 106.4 106.4 112.8 2010 Challenge 9.3 2.9 6.4 9.5 122.3 2009 Challenge 100 Celanese NA/EU VAE C
Slide 57: New, larger, more efficient polyacetal plant
Better positioned for recovery New, larger, more efficient polyacetal (POM) plant Replacement of Kelsterbach Plant with New Plant in Frankfurt (Hoechst) Existing New @ 100 kta New @ 140 kta 4th Qtr East 100 90 64 20.4 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 Relative fixed costs per ton Rela
Slide 58: Operational Excellence creates operating leverage
Operating EBITDA Celanese Operational Excellence 2006 Base Productivity Growth Recessionary Trends Normalized Trough Economic Recovery Operating Lever Innovation Lever Recovery Base 1100 1250 900 900 1500 1650 Add Add 150 250 600 600 150 150 Total 1100 900 1800 2006 - 2010 Strategic Objectives ~$1,1
Slide 59: Advanced Engineered Materials
Advanced Engineered Materials Sandy Beach Lin and Roeland Polet
Slide 60: Advanced Engineered Materials: delivering performance driven solutions
Celanese ($ million) 2008 Revenue: $6,823 2008 Operating EBITDA: $1,169 Acetyl Intermediates Consumer and Industrial Specialties Advanced Engineered Materials 2008 Revenue: $1,061 2008 Operating EBITDA: $170 Ticona Polyplastics Ownership 45% Korea Engineering Plastics Ownership 50% Fortron Industrie
Slide 61: AEM executing on Strategic Objectives
Advanced Engineered Materials executing on Strategic Objectives Group Group Productivity Productivity Growth Growth Growth Balance Sheet EBITDA Impact Group Group Operational Excellence Revitalization Asia Innovation Organic Balance Sheet EBITDA Impact Industrial Specialties X X X X X >$50MM Consume
Slide 62: AEM - Growth and innovation fuel Strategic Objectives
2006 Base Productivity Growth Recessionary Trends Normalized Trough Base 260 270 360 Add 10 90 205 Subtract Total 260 150 2006 - 2010 Strategic Objectives >$100 million $260 million Operating EBITDA Unprecedented inventory destocking having short-term impact $140-160 million AEM - Growth and innovat
Slide 63: Precise applications in complex environments
Precise applications in complex environments Extreme Requirements Highly engineered polymers - high performance portfolio Excellent Products Collaborative engineering right people - right place - - right time Extraordinary Engineering AEM "Sweet Spot" Intensive engineering Highly specification- driv
Slide 64: Value of technology and performance is differentiated
95% 5% Standard Polymers High-Performance Polymers (HPP) Engineering Thermoplastics (ETP) ABS, SAN, ASA = 3% PE = 28% PP = 19% PET = 7% PU = 6% PVC = 14% PS, EPS = 8% Range of Products $1/kg $100/kg $10/kg $3/kg Price Range Performance Ranges Price for Performance PA = 5% PC = 5% Value of technology
Slide 65: Relative Pricing Comparison ETP vs. Commodity Plastic
Relative Pricing Comparison ETP vs. Commodity Plastic Q104 Q204 Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Polyacetal 100 100 100 101 107 109 108 106 108 109 110 110 110 112 113 113 114 116 117 119 118 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 66: Value of Specification
Value of Specification Specification position demonstrates strength of the franchise High Performance Polyamide Polypropylene Polycarbonate 100 29 7 14 Value Delivered Specification Strength LANXESS AEM DuPont SABIC/PC BASF DSM Solvay DOW SABIC/Core Specification drives sustainable value for high pe
Slide 67: AEM clear leader in key high performance polymers
Key Products Ticona DuPont DSM Sabic Solvay BASF Major End Uses Hostaform(r) Polyacetal Copolymer (POM) +++ +++ -- -- -- ++ Vectra(r) Liquid Crystal Polymer (LCP) +++ ++ -- -- ++ -- GUR(r) Ultra-high molecular weight polyethylene (UHMW-PE) ++++ -- ++ + -- -- Fortron(r) Polyphenylensulfide (PPS) ++++
Slide 68: Broad range of end-use applications
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East 44 10 12 17 7 8 2 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 Other 2% Broad range of end-use applications to targeted value-added niches 2008 Revenue ~ $1.1 billion Alternate Fabrication 7% Transportation 44% Fuel systems Safety systems Mechanical component
Slide 69: Ticona's levers for increased earnings power
Economic Recovery Earnings Power Improvement Ticona's levers for increased earnings power Balanced footprint in key regions Recovering conditions in key end-use industries Attractive balance sheet with strong cash generation Geographic Demand Capital Structure Sustainable fixed spending reductions E
Slide 70: Automotive remains key demand lever
As the economy recovers, automotive remains key demand lever to capture growth Historic High 2009 2010 2011 2012 Developed Countries 46.4 31.6 35.1 39.5 42.2 Emerging Countries 24.6 23.6 24.7 27.6 30.7 Translation, innovation, volume and geography... AEM well-positioned to deliver solutions CAGR 10%
Slide 71: Changing automotive environment favors high performance plastics
Changing automotive environment favors high performance plastics Global Automotive Trends Global Automotive Trends Global Automotive Trends Global Automotive Trends Global Automotive Trends Global Automotive Trends Regulatory Regulatory Consumer Consumer Manufacturing Manufacturing Emissions Fuel Ef
Slide 72: Regulations driving industry growth
Regulations driving industry growth Source: World Resources Institute 2005 Actual and Projected Fuel Economy Standards by Country 2002 - 2016 EU Canada US Japan Australia China California 25 30 35 40 45 50 55 2002 2004 2006 2008 2010 2012 2014 2016 MPG - Converted to CAFE Test Cycle Hybrid vehicles
Slide 73: Ticona well-positioned to capitalize on growth
Ticona is well-positioned to capitalize on growth opportunities Efficient engines Hybrid- engine systems Alternative fuels Metal replacement ? Ticona high temperature polymers for turbo-charged engines Ticona polymers in hybrid vehicle systems New Hostaform(r) POM products meet more aggressive condi
Slide 74: Global automotive platforms
Global automotive platforms... Global OEMs Multiple nameplate vehicles built off single chassis Manufactured in multiple regions of the world Engineered ONLY ONCE Ticona is aligned with global players on global platforms
Slide 75: Translating value worldwide
....translating value worldwide AEM Capabilities Application development Compound development Polymer development Testing Processing optimization Global footprint supports OEM requirements Leverage resources for maximum value Specification on global platforms key FOCUS and growth driver Ticona deliv
Slide 76: Automotive landscape for engineered plastics today
Automotive landscape for engineered plastics today Structural Parts Chassis Components Select Interior Components Door Systems Front-end modules Instrument panels Sunroof systems Instrument clusters Metallic-look controls Safety restraints Overhead consoles Window lifts Door locks Door modules Power
Slide 77: Automotive Opportunity
Automotive Opportunity Current "best-in-class" translation to all models yields translation opportunity Westernization of current China production drives China opportunity Successful commercialization of application R&D creates pipeline opportunity Total Revenue ($ billion) 3.0 Total AEM Today Total
Slide 78: Project Pipeline Development
Project Pipeline Development Automotive Non-Automotive Continued increases in new project opportunities with focus on: High-growth end-segments Regional penetration Pipeline drivers continue to be: Regulatory trends Consumer preferences Geographic shift to adopt Western standards Productivity emphas
Slide 79: Automotive landscape and AEM opportunity tomorrow
Door Systems Structural Parts Fuel Delivery Systems Chassis Components Select Interior Components Automotive landscape for engineered plastics and AEM opportunity tomorrow Solar Roof Panels Hybrid Technology Fuel Delivery Systems Select Interior Components Additional Interior Components Fuel Cells A
Slide 80: Ticona's levers for increased earnings power
Economic Recovery Earnings Power Improvement Ticona's levers for increased earnings power Balanced footprint in key regions Recovering conditions in key end-use industries Attractive balance sheet with strong cash generation Geographic Demand Capital Structure Sustainable fixed spending reductions E
Slide 81: Asia Sales for Ticona Global Portfolio
Asia Sales for Ticona Global Portfolio Ticona Key Products - Asia Trajectory We are making progress in Asia... and the platform is in place to capture growth 2008 Target 525 850 0.05 0.52 2003 2004 2005 2006 2007 2008 Asia 19 42 44 55 88 106 Asia segment size (est.) CE share (est.) Source: Form 10-K
Slide 82: Changing Asian dynamics demand advanced solutions
Changing Asian dynamics demand advanced solutions Asia Past Asia Current and Future Customer Base Local suppliers producing for local customers Global customers with global manufacturing/design Industry Dynamics End-markets in first generations of development End-markets rapidly evolving to meet com
Slide 83: Why will Ticona win? Electronics growth
Why will Ticona Win? Evolving Designs = New Demands High temperature performance within lead-free soldering ranges Chemical and oxidation resistance in thin-walled applications Dimensional stability and precision Low melt viscosity Functional aesthetics Low emissions NEW EXTREME REQUIREMENTS Vectra(
Slide 84: GUR UHMW-PE in lithium ion battery industry
Lithium Ion Rechargeable Battery Industry Why will Ticona Win? GUR(r) UHMW-PE...translating membrane technologies throughout Asia SOLUTIONS THROUGH ENABLING TECHNOLOGIES Long history in battery applications - translating to lithium ion segment Key relationships New entrants in Asia Global suppliers
Slide 85: Asia: geographic lever
Asia: geographic lever focused on high growth region and opportunities *Based on 2008 sales of POM, LCP & GUR 2008 Regional Split for Ticona Key Products* 2008 Regional Split for Ticona Key Products* NA ~40% EU ~50% ASIA ~10% Translating Ticona's Global Brand Experience Target Regional Split for Tic
Slide 86: New initiatives increase earnings
New initiatives increase earnings Advanced Engineered Materials Operating EBITDA 2006 Base Productivity Growth Recessionary Trends Normalized Trough Economic Recovery Operating Lever Innovation Lever Recovery Base 260 270 360 150 350 410 Add 10 90 200 60 15 Subtract 455 Total 260 150 425 2006 - 2010
Slide 87: AEM: substantial leverage to recovery
Well-positioned Franchise Geographic Growth AEM: substantial leverage to recovery Demand Recovery Portfolio positioned to recover and sustain increased earnings + + Key Products Ticona Hostaform(r) Polyacetal Copolymer (POM) +++ Vectra(r) Liquid Crystal Polymer (LCP) +++ GUR(r) Ultra-high molecular
Slide 88: Consumer Specialties
Consumer Specialties Sandy Beach Lin
Slide 89: Consumer Specialties: increasing and sustainable cash generation
Consumer Specialties: increasing and sustainable cash generation provides a solid foundation Celanese ($ million) 2008 Revenue: $6,823 2008 Operating EBITDA: $1,169 Acetyl Intermediates Industrial Specialties Advanced Engineered Materials A leading global player Stable cash generation driven by stro
Slide 90: Global integrated model provides competitive advantage
Global integrated model provides Celanese with a competitive advantage Acetic Acid Acetyl Intermediates Consumer Specialties Building Block Raw Materials Acetic Anhydride Acetate Flake Nutrinova Esters and Other Derivatives Wood Pulp Acetate Tow Acetyl Intermediates well-positioned to supply Consume
Slide 91: Consumer Specialties executing on Strategic Objectives
Consumer Specialties executing on Strategic Objectives Operational Excellence Manufacturing realignment completed Fixed cost focus realized in Nutrinova Revitalization APL acquisition completed and successfully integrated Asia China JVs expanded ? ? ? Group Group Productivity Productivity Growth Gro
Slide 92: Acetate product revitalization strategy
Timeframe APL Asset Acquisition Integrate the business Capture/realize synergies Complete 2004 2005 2006 2007 2008 2009 Restructuring/Repositioning China venture tow expansions Filament exit/site optimization China venture flake expansion Complete Complete Complete 2009 and Beyond Maximize cash gene
Slide 93: Strategic Objectives met; building on strong performance
Consumer Specialties: Strategic Objectives met; building on strong performance Operating EBITDA 2006 Base Productivity Growth Recessionary Trends Normalized Trough Base 228 278 Add 50 66 Subtract Total 228 400 2006 - 2010 Strategic Objectives >$50 million $230 million $350-400 million Businesses les
Slide 94: Consumer Specialties provides stable earnings and cash generation
Operating EBITDA 2000 107.8 2001 148.4 2002 140.8 2003 121.7 2004 145.4 2005 160 2006 228 2007 274 2008 293 Annual EBITDA Consumer Specialties provides stable earnings and cash generation APL integration complete Realizing revitalization benefits China venture expansions complete; add to operating i
Slide 95: Acetate Tow global demand and competition
Acetate Tow Global Demand Acetate Tow Competition Acetate Tow profile Low single-digit worldwide growth Asia is largest global consumer and fastest growing region 2008 Q1 to Q3 GAMA Asia 404.4 Americas 100.5 Western Europe 97.5 Rest of World 164.7 2008 Q1 to Q3 GAMA Celanese 188.4 Celanese China JVs
Slide 96: Celanese strategically positioned geographically
Tow Production Flake Production Nantong, China Lanaken, Belgium Spondon, United Kingdom Narrows, Virginia Ocotlan, Mexico Kunming, China Zhuhai, China Note: Includes share attributable to China joint ventures Source: Celanese internal estimates Americas Europe/Africa Asia Pacific % of Global Demand
Slide 97: Demand in China will drive worldwide growth
Demand in China will drive worldwide growth China Domestic Supply Imports ROW 2008 159 78 2013E 159 138 2008 521 2013E 548 kT 2008 2009E 2010E 2011E 2012E 2013E 2014E 2015E Total World 764 776.5 793.5 811.5 828 844.5 860.5 871.5 kT Source: Celanese internal estimates Well-positioned for growth in Ch
Slide 98: Declining sugar consumption in beverages
Declining sugar consumption in beverages 75% of Sunett(r) volumes used in beverages Sunett(r) brand is approved in more than 100 countries and used in more than 5,000 products Source: Euromonitor 2008 and Celanese internal estimates % of Sweetened Soft Drinks Using High-intensity Sweeteners 2002 200
Slide 99: Nutrinova positioned to generate stable cash
Nutrinova is positioned to continue to generate stable cash Normalized Sales and Earnings Trends Net Sales EBITDA 2008 0.2 0.36 2008 Compared to 2002 Increased demand and operational excellence driving sustained earnings Indexed to 2002 Fixed Cost as % of Sales 2002 2008 2008 1 0.78
Slide 100: Consumer Specialties: sustainable franchise
Consumer Specialties: sustainable franchise Operating EBITDA 2006 Base Productivity Growth Operating and Innovation Levers Recovery Base 228 278 344 Add 50 66 30 Subtract Total 228 374 2006 - 2010 Strategic Objectives >$50 million $230 million $350-400 million 2009 to "Recovery" Strategic Objectives
Slide 101: Consumer Specialties summary
Earnings Growth History of Success Nantong, China Lanaken, Belgium Spondon, United Kingdom Narrows, Virginia Ocotlan, Mexico Kunming, China Zhuhai, China Operating EBITDA 2000 133.7 2001 150.6 2002 157.8 2003 152.5 2004 170.6 2005 160 2006 228 2007 274 2008 293 Consumer Specialties summary + + Consu
Slide 102: Acetyl Intermediates
Acetyl Intermediates Doug Madden and John Fotheringham
Slide 103: Acetyl Intermediates: 2008 Performance
Acetyl Intermediates: 2008 Performance Celanese ($ million) 2008 Revenue: $6,823 2008 Operating EBITDA: $1,169 Acetyl Intermediates Industrial Specialties Advanced Engineered Materials 2008 Revenue: $3,201 2008 Operating EBITDA: $676 Acetic Acid Acetic Anhydride Vinyl Acetate Monomer Acetate Esters
Slide 104: Strategic Objectives to improve earnings power
2006-2010 Strategic Objectives were created to improve earnings power Group Group Productivity Productivity Growth Growth Growth Balance Sheet EBITDA Impact Group Group Operational Excellence Revitalization Asia Innovation Organic Balance Sheet EBITDA Impact Industrial Specialties X X X X X >$50MM C
Slide 105: Operating EBITDA: improvement through the cycle
Operating EBITDA Previous Trough 2006 Base Productivity Growth Recessionary Trends New Normalized Trough Base 600 625 400 Add 25 75 Subtract 455 Total 250 600 450 2006 - 2010 Strategic Objectives >$100 million $200-300 million Significant improvement in the earnings profile throughout the economic c
Slide 106: A growing franchise
A Growing Franchise A growing franchise in an attractive industry Proven execution and leadership capability Significant value from downstream derivatives Build upon advantages to grow faster than the industry Long-term growth rates in excess of GDP Favorable position on a steep cost curve Advantage
Slide 107: Celanese is in an attractive position
Global Acetic Acid (2008) Global VAM (2008) Celanese is in an attractive position Celanese Celanese Expansion BP Sopo Lyondell Kyodo Sakusan Wujing Others 2008 27 22 5 4.5 3.8 3.5 35 Celanese Dairen Dow Sinopec Lyondell DuPont Ineos Others 2008 30 11 8 7 6 6 5 27 Source: Celanese internal analysis;
Slide 108: Acetic Acid growth
Acetic Acid Growth (1996 - 2014E) Growth forecasted to rebound to more normalized GDP+ levels through 2014 Long-term demand growth in excess of GDP expected to continue Source: 1CMAI, 2Tecnon, 3Celanese internal estimates 1996 2002 2008 2014E Acetic Acid Growth 5631 7052 9297 11610 GDP Growth 100 11
Slide 109: Global trends support long-term growth greater than GDP
Global trends continue to support long-term growth greater than GDP Key Trends End Segment Benefited Acetyl Product Benefited Growth Capability Convenience/ Polyester Substitution Films, textiles, other polyester applications Acetic Acid, VAM High Environment Environmentally friendly paints and coat
Slide 110: Differentiated cost curve yields attractive returns
Differentiated cost curve yields attractive global returns for Celanese Strong margins during 2005- 2008 attracted industry investment Economic slowdown is expected to reduce demand to normalized trough levels in 2H 2009 Cost curve remains intact Current economics impacting unfinished projects Celan
Slide 111: Low-cost manufacturing provides industry-leading cost structure
Fixed Cost Per Ton Low-cost manufacturing provides an industry-leading cost structure Source: Various press releases and Celanese internal estimates CE Avg Other Leading Avg Non-China MeOH Avg Lower Cost China MeOH Avg China High Cost MeOH Raw Materials 100 135 196 232 296 (Relative % of Cost Per To
Slide 112: AOPlus2 capital advantage
Celanese AOPlus(r)2: delivers capital advantage that is ~4 to 6 times greater than other acetyl projects Celanese AOPlus(r)2: 50% more capital efficient CE AOPlus(r) Phase I Celanese capital efficiency: a long-term competitive advantage Source: Various press releases, 2007 China Acetic Acid Conferen
Slide 113: ROIC vs. Acetic Acid margin
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Return on Invested Capital Indicative Pricing minus Raw Materials Source: Celanese internal estimates; available public data Celanese is able to achieve >15% ROIC when others are not able to profitably reinvest Lower Cost MeOH Carbonylation Other Leading MeO
Slide 114: Differentiation in technology of announced expansions
Significant differentiation in technology of announced expansions Facilities under construction anticipated to be completed and started up ~70% of announced capacity additions will have difficulty covering variable cost Pressure will be on uncompetitive projects that have not made significant progre
Slide 115: Delays in project startups likely to continue
Delays in project startups likely to continue Company Capacity 2007 2008 2009 2010 2011 BP / Sinopec 550 kt Sipchem 430 kt Sopo (expansion) 600 kt Wujing (expansion) 500 kt Yangkuang Cathay 350 kt Henan Shunda 200 kt HC Tianjin Bohei 200 kt HC Hualu Hensheng 200 kt HC Henan Yima 200 kt HC Yunan Yunw
Slide 116: Celanese Global Manufacturing Locations
Celanese Global Manufacturing Locations All values shown in kT per year Singapore Acid = 600 VAM = 210 Esters = 130 Frankfurt, Germany VAM = 285 Esters = 40 Tarragona, Spain VAM = 200 Bay City, TX VAM = 300 Clear Lake, TX Acid = 1,200 VAM = 310 Cangrejera, Mexico Anhydride = 90 Esters = 105 VAM = 11
Slide 117: Majority of planned capacity additions may be disadvantaged
Majority of planned capacity additions and expansions may be disadvantaged Reinvestment economics challenged for non-leading technologies 2010/2011E Acetic Acid Cost Curve (kT) $ per ton By Prod Avg Other Leading Technology Effective Industry Utilization Rates Ethylene Highest Cost China MeOH 2010/2
Slide 118: A growing franchise
A Growing Franchise A growing franchise in an attractive industry Proven execution and leadership capability Significant value from downstream derivatives Build upon advantages to grow faster than the industry Long-term growth rates in excess of GDP Favorable position on a steep cost curve Advantage
Slide 119: Growth with customers drives opportunities in Asia
2006 2009E 2012E 2006 2009E 2012E Growth with our customers drives additional opportunities in Asia Successfully growing business in Asia with strong customers Assets positioned to capture demand-shift from Americas and Europe Low-cost expansions at Celanese's acetic acid facilities in Asia allow co
Slide 120: Continue to grow faster than the industry
Continue to grow faster than the industry Celanese Acetic Acid Industry Share 2005 2009E 1 1.07 Optionality to grow with - or ahead of - the industry Source: Celanese internal estimates; Tecnon Leverage flexible technology 600 kT expansion announced at Nanjing 600 kT expansion opportunity at Singapo
Slide 121: Sustainable competitive advantages
Sustainable competitive advantages enhanced by productivity and growth Acetyl Intermediates will continue to drive profitability for Celanese in a variety of economic climates Global Competitive Drivers Global Competitive Drivers Global Competitive Drivers Productivity Growth ? Advantaged Technology
Slide 122: New initiatives increase earnings power
New initiatives increase earnings power Acetyls Intermediates Operating EBITDA Previous Trough 2006 Base Productivity Growth Recessionary Trends Normalized Trough Economic Recovery Operational Lever Innovation Lever Recovery Base 600 625 450 450 550 625 Add 25 75 100 75 75 Subtract Total 250 600 450
Slide 123: Celanese well-positioned for earnings growth
Steep and Differentiated Cost Curve Attractive Industry Celanese well-positioned for earnings growth and economic recovery Celanese Celanese Expansion BP Sopo Lyondell Kyodo Sakusan Wujing Others 2008 27 22 5 4.5 3.8 3.5 35 A leading industry position provides strategic optionality Growth Opportunit
Slide 124: Industrial Specialties
Industrial Specialties Doug Madden and Phil McDivitt
Slide 125: Integrated businesses aligned to accelerate growth
Acetyl Intermediates (AI) Differentiated Intermediates Specialty Products Building Block Raw Materials Industrial Specialties (IS) Emulsions AT Plastics Acetic Acid VAM Consumes 20% of Celanese VAM Provides through-the-chain optionality Integrated businesses aligned to accelerate growth and drive pr
Slide 126: Industrial Specialties: vinyl-based technology and global platform
Celanese ($ million) 2008 Revenue: $6,823 2008 Operating EBITDA: $1,169 Acetyl Intermediates Advanced Engineered Materials Reduced volatility demonstrated by stable earnings past three years Technology-driven growth Global expansion opportunities High return on capital performance Industrial Special
Slide 127: Industrial Specialties executing on Strategic Objectives
Industrial Specialties executing on Strategic Objectives Operational Excellence $25 million in annual savings captured Revitalization Initial manufacturing realignment complete Regional Growth Nanjing fully operational and sales one year ahead of plan India/SE Asia sales started Technology EcoVAE(r)
Slide 128: Strategic Objectives to increase earnings power
Operating EBITDA* 2006 Base Productivity Growth Recessionary Trends Normalized Trough Base 107 132 Add 25 25 125 Subtract 40 Total 107 100 2006 - 2010 Strategic Objectives >$50 million ~$110 million $80-100 million *Excludes PVOH business that CE has agreed to divest Strategic Objectives to increase
Slide 129: Integrated businesses service a variety of end uses
Emulsions AT Plastics Consumes 20% of Celanese VAM Provides through-the-chain optionality Driving customer innovation in a broad range of applications Adhesives: 35% Eng Fabrics/ Textiles: 10% Paints & Coatings: 25% Specialty/ Other: 10% Paper: 5% Construction: 15% VAM Integrated businesses service
Slide 130: Three pillar strategy for Vinyl leadership
Three pillar strategy - leveraging strengths to enhance Vinyl leadership Operational Excellence Technology Leadership Geographic Growth Vinyl Chemistry Leadership Geographic Growth Continue growth in Asia and position business for future opportunities Technology Leadership Expand penetration into ne
Slide 131: Successful track record of growth in Asia
Successful track record of growth in Asia Completed construction of VAE unit in Nanjing in 2007 Supply positions established with major Western and Chinese companies Shifting focus toward domestically consumed end uses Business development established in India, SE Asia and the Middle East Developing
Slide 132: Asia Synthetic Latex Growth
Asia Synthetic Latex Growth Asia provides a significant growth opportunity in the synthetic latex industry Asia Demand Drivers Increasing population Increasing disposable income Shift to Western performance requirements 2008 2013E Asia 2438 4160 >10% CAGR Global Synthetic Latex Industry: ~$18 billio
Slide 133: Technology driving growth of vinyl chemistries in China
Technology driving higher growth for vinyl-based chemistries in China Growth Drivers Exterior building insulation for energy savings Low odor and low emission paints for healthy air Waterproofing for building protection Growth Rate 20-25%/year 10-15%/year 10-15%/year Certain subsegments growing at a
Slide 134: Asia Sales Growth: next phase
Asia Sales Growth Preparing for our next phase of growth Focused sales and technical development staff Expanding "local" product consumption EcoVAE(r) paint products Waterproofing products Adhesives Construction chemicals Further development of supply positions into other emerging economies 2009E 20
Slide 135: Estimated Regional Balance - 2012
Estimated Regional Balance - 2012 Percent of Celanese Emulsions Net Sales by Region 30 - 40% 45 - 55% 10 - 15% Annual Regional Growth 2-3% 2-3% 10-12%
Slide 136: Three pillar strategy to enhance Vinyl leadership
Three pillar strategy - leveraging strengths to enhance our Vinyl leadership Operational Excellence Technology Leadership Geographic Growth Vinyl Chemistry Leadership Geographic Growth Continue growth in Asia and position business for future opportunities Technology Leadership Expand penetration int
Slide 137: Vinyl Advantage
Vinyl Advantage System Efficiency Match performance to industry requirements Leverage cost in use Functional Differentiation Performance to achieve new customer requirements Leverage product capability Vinyl Opportunity Leverage vinyl system capability to access $1 billion of new industry space and
Slide 138: Global macro-trends drive our innovation
Global macro-trends drive our innovation ? Emulsion Polymers' VAE for low/zero VOC paints AT Plastics EVA to optimize crop feeding through controlled timing of feed AT Plastics higher EVA's for solar cell encapsulation Emulsion Polymers' VAE for textile application for improved "feel" ? ? ? AT Plast
Slide 139: Innovation Sweet Spot
Inception 12-24 months 5+ years Innovation Sweet Spot represents period of fastest growth for new technologies and applications Innovation "Sweet Spot" Technology Development Market Maturity Revenue Life Cycle Robust pipeline key to differentiating vinyl systems within the competitive landscape
Slide 140: Innovation pipeline approaching $1 billion industry opportunity
Inception 12-24 months Apparel Finishing Energy Use Reduction Revenue Life Cycle EU Exterior Low-VOC 5+ years EU Interior Low-VOC Green Construction Opportunity Size <$50 million $50-200 million >$200 million Wind Energy Expanding segment penetration and improving our sales mix Today's discussion So
Slide 141: EVA Encapsulate for PV Cells
Driver: Decreased Dependence on Petroleum EVA Encapsulate for PV Cells Large segment growing fast t 0 Encapsulate EVA Ateva(r) copolymer is preferred encapsulate material due to: Light transmittance Adhesion and sealing properties Electrical insulation Celanese is aligned with the industry leader Gl
Slide 142: Environmentally-friendly paints and coatings
Global leader in emulsions systems for environmentally-friendly paints and coatings US interior paint market changing Consumer perception favoring "greener" building products Regulation shifting to low-VOC content Celanese building off of a European leadership position VAE Share of Interior Paint Ma
Slide 143: Controlled release technology
Controlled release technology key enabler in critical applications EVA Surrounding medium CustomDose(tm) Active Ingredient Improved delivery efficiency Tailored dosing capability Environmentally and biologically friendly Why CustomDose(tm)? Ingredient Dosing Time Conventional therapy Desired dosage
Slide 144: Trends drive $1 billion industry opportunity
Eco-friendly Efficiency Renewable Comfort $400-500 million $200-350 million $100+ million $25-50 million Convenience $25-50 million Industry Revenue Opportunity Global opportunity of $250 million revenue for Celanese Trends drive $1 billion total industry opportunity
Slide 145: Industrial Specialties earnings power
Strategic Objectives to increase the earnings power of Celanese Industrial Specialties Operating EBITDA 2006 Base Productivity Growth Recessionary Trends Normalized Trough Economic Recovery Operating Lever Innovation Lever Recovery Base 108 134 100 150 175 Add 20 20 25 25 Subtract 455 Total 108 95 2
Slide 146: Industrial Specialties Summary
Industrial Specialties Summary Integrated business with the cost structure and global positioning to capture growth opportunities Integrated Model Technology Leadership Geographic Growth Acetyl Intermediates (AI) Acid Emulsions AT Plastics VAM + +
Slide 147: Financial Strength
Financial Strength Steven M. Sterin Senior Vice President and Chief Financial Officer
Slide 148: Financial Strength
Financial Strength Current Financial and Cash Flow Performance Capital Structure Earnings Power Case for Value Creation
Slide 149: Q1 2009 Financial Update
Celanese ($ million) Q1 2009 Revenue: $1,146 Q1 2009 Operating EBITDA: $136 Consumer Specialties Revenue: $266 Operating EBITDA: $81 Advanced Engineered Materials Revenue: $165 Operating EBITDA: $0 Industrial Specialties Revenue: $242 Operating EBITDA: $26 Acetyl Intermediates Revenue: $572 Operatin
Slide 150: Available Cash
Available Cash Available Cash Cash (as of 3/31/2009) $1,150 Kelsterbach Spending ~($560) Operating Cash ~($300) PVOH Proceeds (expected mid 2009) ~$180 Cash Available for Strategic Purposes ~$470 Entered into an agreement to sell PVOH business for $173 million plus liquidation of accounts receivable
Slide 151: Track record of generating significant cash
A track record of generating significant cash for investors Source: Based on information obtained from Thomson Financial as of May 5, 2009 and company reports Leveraging our technology, fiscal discipline and execution culture to generate strong cash flows DD CE FMC NLC DOW APD ROC LZ EMN HUN FCF/Sal
Slide 152: Hybrid portfolio positioned in peak or trough conditions
Hybrid portfolio well positioned in peak or trough conditions 2009E Cash Flows* 2009E Cash Flows* Cash Taxes $80 - 120 Capital Expenditures $150 - 175 Reserve Spending $50 - 60 Net Interest $220 - 230 Pension $45 - 60 Dividends/Debt Service $80 - 90 Total Cash Outflows $625 - 735 *Starting from an O
Slide 153: Financial Strength
Financial Strength Current Financial and Cash Flow Performance Capital Structure Earnings Power Case for Value Creation
Slide 154: Track record of performance: capital allocation
Track record of performance Aligned with Strategic Pillars Cost Reduction: <2 year simple payback Growth: <4 year simple payback 20% - >50% return Investment Criteria Growth Projects Acquisitions Share Buy- Back Dividends Debt Repayment Execute Growth Strategy Optimize Capital Structure Cash Availab
Slide 155: Celanese capital structure
Celanese capital structure Term Loan - $2.8 billion Other Debt Obligations - $706 million Cash - $1.2 billion Net Debt - $2.3 billion Revolver - $650 million Cost Stability Flexibility Structure Characteristics Primary Components Solid liquidity position and covenant-lite term loan create advantaged
Slide 156: Advantaged Capital Structure
Advantaged Capital Structure Flexible: "Covenant-lite" - no financial maintenance covenants on term loan Term loan maturity not until 2014 1% annual term loan amortization Low cost: Term loan at LIBOR plus 150 - 175 bps Net debt is ~75% fixed Flexible and Low Cost No substantial debt service until 2
Slide 157: Favorable leverage to the upside
Note: Represents 2009 consensus EBITDA (from First Call) and Q1 2009 debt numbers. Effective interest expense from company sources calculated using annualized Q1 2009 interest expense. CE net debt excludes impact of $560 million of cash received for Kelsterbach relocation. CE net debt includes pro f
Slide 158: Financial Strength
Financial Strength Current Financial and Cash Flow Performance Capital Structure Earnings Power Case for Value Creation
Slide 159: Portfolio well-positioned to deliver and execute
Portfolio well-positioned to deliver and execute Portfolio Characteristics Financial Impact Acetyl Intermediates (Acetic Acid, Vinyl Acetate Monomer, Acetyl Derivatives) A global leader Advantaged technology Superior cost position Capital efficient Manufacturing footprint savings Stable EBITDA Advan
Slide 160: Sustainable Fixed Cost Reduction
Sustainable Fixed Cost Reduction Additional High Return Investments in 2009-2010 ... PRODUCTIVITY Sustainable fixed cost reduction enables additional earnings power in 2010 and beyond 2009 2010 Net Cash +$55 million Cash Flow ($ million) Net Cash +$80 million Cash Investment In Year Benefit - Cash &
Slide 161: High Return Growth opportunities - Nanjing
High Return GROWTH opportunities - unique to Celanese Nanjing Integrated Complex Economics Nanjing Integrated Complex Economics Nanjing Integrated Complex Economics Nanjing Integrated Complex Economics Nanjing Integrated Complex Economics ($ million) Investment Revenue EBITDA Estimated Return Initia
Slide 162: Incremental ROIC - WACC spread
Celanese Incremental ROIC - WACC Spread above Industry Average Spread 2005 2006 2007 2008 Current LTM ROIC - WACC Spread Current Celanese 0.076 Industrial Gases 0.0407 Specialty Chemicals 0.0126 Commodity Chemicals -0.0178 Average 0.0118 Note: Industrial gas companies include Airgas, Air Products an
Slide 163: Levers build significant earnings power
Levers build significant earnings power of the portfolio Earnings power of portfolio expected to increase by $250 - $350 million above previous commitments by Recovery Economic Recovery Economic Recovery Economic Recovery Expanded Earnings Power Expanded Earnings Power Expanded Earnings Power Group
Slide 164: Increased earnings power drives shareholder value
Increased earnings power drives significant shareholder value Operating EBITDA 2006 Base Productivity Growth Recessionary Trends Normalized Trough Economic Recovery Operating Lever Innovation Lever Recovery Base 1100 1250 900 900 1500 1650 Add Add 150 250 600 600 150 150 Total 1100 900 1800 2006 - 2
Slide 165: Financial Strength
Financial Strength Current Financial and Cash Flow Performance Capital Structure Earnings Power Case for Value Creation
Slide 166: Continued improvement in earnings power
Increased earnings power drives significant shareholder value Operating EBITDA Improvement Previous Trough Current Normalized Trough Recovery Base Add Add Total 388 900 1700 $300-400 million $1,600-1,800 million $800-1,000 million Continued improvement in earnings power
Slide 167: Peak to trough EBITDA comparable to specialty chemicals
Peak to trough EBITDA more comparable to specialty chemicals Note: Peak year defined as the best year in earnings (2005-08) for all companies. Trough year defined as 2009. First Call Consensus EBITDA taken for 2009. 2009 EBITDA margins taken for commodity chemical companies. Q1 2009 EBITDA margins t
Slide 168: Why Celanese? Why Celanese Now?
Why Celanese? Why Celanese Now? Economic Recovery Earnings Power Expansion Significant value upside over current share price Geographic Demand Capital Structure Operating Innovation Track record of execution High return opportunities $1.6-1.8 billion recovery earnings Rapid earnings growth of the cu
Slide 169: Celanese Corporation - 2009 Investor Day
Celanese Corporation - 2009 Investor Day May 11, 2009
Slide 170: Reg G: Reconciliation of Operating EBITDA Q1 2009
Reg G: Reconciliation of Operating EBITDA Q1 2009
Slide 171: Reg G: Reconciliation of Operating EBITDA 2008
Reg G: Reconciliation of Operating EBITDA 2008
Slide 172: Reg G: Reconciliation of Consumer Specialties Operating EBITDA 2000-2008
Reg G: Reconciliation of Consumer Specialties Operating EBITDA: 2000-2008
Slide 173: Reg G: Reconciliation of Celanese Operating EBITDA 2001
Reg G: Reconciliation of Celanese Operating EBITDA: 2001
Slide 174: Celanese Corporation - 2009 Investor Day
Celanese Corporation - 2009 Investor Day May 11, 2009