Celanese Corporation · NYSE:CE
Celanese — Merger or Acquisition (February 2022)
17 slides from Celanese's merger presentation, February 2022
Slide 1: Celanese to Acquire Majority of DuPont's Mobility & Materials Business
Celanese to Acquire Majority of DuPont’s Mobility & Materials Business Establishes Celanese as the Preeminent Global Specialty Materials Company February 2022
Slide 2: Disclosures
Disclosures Forward-Looking Statements This presentation contains "forward-looking statements," which include information concerning the Company's plans, objectives, goals, strategies, future revenues, cash flow, financial performance, synergies, performance, capital expenditures, financing needs an
Slide 3: Engineered Materials: The Path to Preeminence
Engineered Materials: The Path to Preeminence PRE-PIPELINE MODEL PIPELINE MODEL IMPLEMENTATION, ENHANCEMENT & EXTENSION Enhancing the Model Model Project Win Rate Value Over Growth Implementation Translation Elevation Volume Programs Extending the Model Bolt-on M&A Larger M&A 7x 2012 Operating Engin
Slide 4: Transaction Summary
Transaction Summary Acquisition of majority of DuPont’s Mobility & Materials1 (“M&M”) business Business Acquisition scope optimized to achieve Celanese and DuPont objectives $11 billion all-cash acquisition Estimated 2022 M&M1 EBITDA of ~$900 million (pre-synergy) Terms & Valuation ~8x 2022 EBITDA i
Slide 5: M&M Acquisition is a Powerful Step Forward
M&M Acquisition is a Powerful Step Forward EM M&A Opportunity Set (Investor Day 2021) Enhancing customer engagement via Expanding the broadest complementary polymer portfolio & commercial & extending backward application integration development strengths Medical Reinforcing leadership in auto, elect
Slide 6: Compelling Strategic Rationale
Compelling Strategic Rationale 1 High-quality & high-margin acquisition that transforms Celanese into a larger, more diversified, and more profitable business 2 Complementary product portfolio that doubles the leadership, branding & integration of the EM product portfolio 3 Enhances the commercial a
Slide 7: Mobility & Materials Business
1 Mobility & Materials Business Mobility & $3.8B ~$900M ~23% ~5,000 29 ~ 850 Materials NET SALES EBITDA EBITDA MARGIN EMPLOYEES PRODUCTION1 PATENTS 2022 Est. 2022 Est. 2022 Est. FACILITIES END-MARKET GEOGRAPHY POLYMER FAMILY Industrial & China Americas Other Consumer Nylons Elastomers Automotive Ele
Slide 8: Engineered Materials Post-Transaction
1 Engineered Materials Post-Transaction Combining two highly complementary specialty materials businesses Engineered Materials Mobility & Materials $7.4B $1.8B 24% NET SALES EBITDA EBITDA MARGIN 2022 Est.1 2022 Est.1 2022 Est.1 END-MARKET GEOGRAPHY POLYMER FAMILY Other Other Medical Asia Americas PP
Slide 9: Highly Complementary Product Portfolios
2 Highly Complementary Product Portfolios ACQUIRED POLYMER FAMILIES ENHANCED EM PRODUCT PORTFOLIO NYLONS SPECIALTY NYLONS POLYMER PORTFOLIO FLAGSHIP BRANDS1 Zytel® PA66 Zytel® LCPA Zytel® PA6 Zytel® HPPA Filaments POLYESTERS ~20 ~25 4 10 Crastin® PBT Rynite® PET POLYMER LEADERSHIP POLYMER BACKWARD P
Slide 10: Unparalleled Customer Solutions Partner
3 Unparalleled Customer Solutions Partner ENHANCED CUSTOMER SOLUTIONS PARTNER Future Mobility Medical & Pharma PF Commercial & Customer Engagement EM M&M EM Pipeline Model Brand Strength End-Market Breadth Globally Localized Reach 5G & Connectivity Sustainability Innovation & Application Development
Slide 11: Attractive Automotive Opportunity
3 Attractive Automotive Opportunity Current Global KPV1 Forecasted Global Auto Builds Growth of Addressable Volume into by Powertrain Type by Powertrain Automotive (Acquired Polymer Families)2 CAGR ~100M +4% +4% CAGR (2022-2027) Autos ~80M Autos +450kt Battery Electric Vehicles (BEV) 26 kg +32% Glob
Slide 12: Significant Opportunities in Battery Electric Vehicles
3 Significant Opportunities in Battery Electric Vehicles BATTERY & THERMAL • Battery separators & safety materials • High-performance control systems CONNECTIVITY & 1 MANAGEMENT • Battery cell frames • ADAS1, sensors & cameras 3 INFRASTRUCTURE • Heat exchanger tank • Short & long-range radar • Water
Slide 13: Transaction Delivers on Disciplined M&A Criteria
4 Transaction Delivers on Disciplined M&A Criteria High quality & complementary acquisition with substantial synergies & attractive financial profile 13
Slide 14: Substantial Synergy Opportunity
4 Substantial Synergy Opportunity COST SYNERGIES REVENUE SYNERGIES 100% 100% 100% 50% 65% $275-350M 25% Year 1 Year 2 Year 3 Year 4 $125-150M 5% Year 1 40% Year 2 Year 3 Year 4 Manufacturing utilization & scale Leverage project pipeline model Backward integration into polymerization Promotion across
Slide 15: Strong Financial Profile
4 Strong Financial Profile INCREASED NET SALES GROWTH ENHANCED OPERATING EBITDA MARGIN1 +5% 30 Enhanced margin profile c Acceleration of top-line growth ~ % c on synergy execution 5-Year CAGR 2026 ADJUSTED EPS ACCRETION1,2 VALUE CREATION $2 – $4+ $4B+ Immediate c accretion to c Substantial NPV oppor
Slide 16: Robust Cash Flow Supports Swift Deleveraging
4 Robust Cash Flow Supports Swift Deleveraging FREE CASH FLOW GENERATION1 Fully committed bridge financing in place Free Cash Flow1, $B for $11.0 billion Disciplined Significant capital capital allocation deployment flexibility Leverage ~3.6x ~2.8x 2.0x – 2.5x Longer-term financing planned with a Ra
Slide 17: Financial Benefits of a Larger EM Business
4 Financial Benefits of a Larger EM Business ACETYL CHAIN & ACETATE TOW CELANESE OPERATING EBITDA ENGINEERED MATERIALS 2022 Est. Capital leverage & returns Top-line growth enhancement Strong cash generation Differentiated, specified & c EM value-priced sales Market leadership Predictability position