Slide 1: Celanese Q1 2012 Earnings Conference Call / Webcast
1 Mark Rohr, Chairman and Chief Executive Officer Steven Sterin, Senior Vice President and Chief Financial Officer Celanese Q1 2012 Earnings Conference Call / Webcast Tuesday, April 24, 2012 10:00 a.m. EDT EX 99.2
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This presentation and remarks made as part of this presentation 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
Slide 3: Non-US GAAP Financial Information
3 Non-US GAAP Financial Information Reconciliation of Non-U.S. GAAP Measures to U.S. GAAP This presentation reflects the following performance measures: operating EBITDA, business operating EBITDA, affiliate EBITDA and proportional affiliate EBITDA, adjusted earnings per share, net debt, and adjuste
Slide 4: Mark Rohr, Chairman and Chief Executive Officer
4 Mark Rohr Chairman and Chief Executive Officer
Slide 5: Celanese Corporation Q1'12 highlights
5 ► Weakness in the acetyl chain reflecting soft demand in Europe and Asia ► Advanced Engineered Materials impacted by weak auto builds and lower demand in electronics and industrial goods * See slides 23 and 24 for equity affiliate results and Celanese’s proportional share in millions (except EPS)
Slide 6: Focused on delivering 2012 earnings commitment
6 ►Customer-focused opportunities ► Strategic operating and commercial decisions ►Select productivity and operational excellence Focused on delivering 2012 earnings commitment Continue to expect to deliver on 2012 earnings commitment
Slide 7: Steven Sterin, Senior Vice President and Chief Financial Officer
7 Steven Sterin Senior Vice President and Chief Financial Officer
Slide 8: Advanced Engineered Materials
8 Advanced Engineered Materials ► Expect sequential and YoY earnings growth ► Earnings growth driven by industrial customers in NA and Asia, and NA auto builds ► Growth in strategic affiliates Sequential (Q1’12 vs Q4’11) ► Revenue and earnings growth driven by higher seasonal volume ► Growth in stra
Slide 9: Consumer Specialties
9 Consumer Specialties ► Q1 to Q2 shift of earnings due to production interruption now expected to be $10 – 15 million ► Dividends from China Acetate ventures expected to be modestly higher than 2011’s $78 million ► Expect earnings in 1H’12 and FY12 to be slightly higher than prior year periods Sequ
Slide 10: Industrial Specialties
10 Industrial Specialties ► Expect innovation to drive volume increases ► Pricing initiatives seek to recover higher raw material costs ► Sequential earnings growth Sequential ► Higher sales driven by volume growth in Europe and NA; price change due to product mix ► Favorable raw material costs YoY
Slide 11: Acetyl Intermediates
11 Acetyl Intermediates ► Taking actions in response to decrease in margins ► Expect announced price increases to begin to restore margins throughout acetyl chain Sequential ► Volume growth as industry began to recover from Q4 destocking ► Lower industry utilization and margins YoY ► Margins impacte
Slide 12: Affiliate performance
12 ► Q1’12: equity affiliates contributed $51 million to earnings with an additional $37 million proportional Affiliate EBITDA not included in Operating EBITDA ► Equity and cost investment dividends were $111 million, a $38 million increase from Q1’11 ► Q2 Outlook: dividends/earnings from China Acet
Slide 13: Free cash flow 1st Quarter 2012
13 Free cash flow 1st Quarter 2012 Adjusted Free Cash Flow in millions Q1’11 Q4’11 Q1’12 Net cash provided by operating activities $132 $157 $215 Adjustments to operating cash for discontinued operations - $8 - Net cash provided by operating activities from continuing operations $132 $165 $215 Less:
Slide 14: 2012E Adjusted Free Cash Outflows
14 2012E Adjusted Free Cash Outflows (off EBITDA Base) Cash Taxes $120 – $140 Capital Expenditures $350 – $400 Reserve/Other $125 – $150 Net Interest $190 – $200 Pension $100 – $125 Working Capital ($50) – $0 Adjusted Free Cash Outflows* $800 – $1,000 ► Dividend, debt service and share repurchases o
Slide 15: Appendix
15 Appendix Notes: References on the following slides to tables correspond to the tables included with Celanese press release dated April 24, 2012
Slide 16: Reg G: Business segment data and reconciliation of operating profit to operating EBITDA
16 Reg G: Business segment data and reconciliation of operating profit (loss) to operating EBITDA - a non-U.S. GAAP measure – unaudited (Table 1) Ma rc h 3 1, De ce mb er 31 , Ma rc h 3 1, (in $ mi llio ns ) 20 12 20 11 20 11 Ne t S ale s Ad va nc ed En gin ee red M ate ria ls 31 7 29 2 32 8 Co ns u
Slide 17: Reg G: Reconciliation of net earnings to operating EBITDA
17 Reg G: Reconciliation of consolidated net earnings (loss) to operating EBITDA - a non-U.S. GAAP measure – unaudited (Table 1A) March 31, December 31, March 31, (in $ millions) 2012 2011 2011 Net earnings (loss) attributable to Celanese Corporation 183 95 142 (Earnings) loss from discontinued oper
Slide 18: Reg G: Adjusted earnings per share reconciliation
18 Reg G: Adjusted earnings (loss) per share - reconciliation of a non-U.S. GAAP measure – unaudited (Table 6) (in $ millions, except share and per share data) per share per share per share Earnings (loss) from continuing operations 183 1.15 96 0.61 138 0.87 Deduct: Income tax (provision) benefit 76
Slide 19: Reg G: Other charges and other adjustments reconciliation
19 Reg G: Other charges and other adjustments - reconciliation of a non-U.S. GAAP measure – unaudited (Table 7) Other Charges (Gains), net: March 31, December 31, March 31, (in $ millions) 2012 2011 2011 Employee termination benefits - 4 4 Ticona Kelsterbach plant relocation - 4 13 Asset impairments
Slide 20: Q1 2012 Other charges and other adjustments by business segment
20 Q1 2012 Other charges and other adjustments by business segment - reconciliation of a non-U.S. GAAP measure - unaudited 2 Income Statement in $ millions AEM CS IS AI Other Total Classification Employee termination benefits - 1 - - (1) - Total other charges (gains), net - 1 - - (1) - Business opti
Slide 21: Q4 2011 Other charges and other adjustments by business segment
21 Q4 2011 Other charges and other adjustments by business segment - reconciliation of a non-U.S. GAAP measure - unaudited Income Statement in $ millions AEM CS IS AI Other Total Classification Employee termination benefits 3 1 - - - 4 Ticona Kelsterbach plant relocation 4 - - - - 4 Asset impairment
Slide 22: Q1 2011 Other charges and other adjustments by business segment
22 Q1 2011 Other charges and other adjustments by business segment - reconciliation of a non-U.S. GAAP measure - unaudited Income Statement in $ millions AEM CS IS AI Other Total Classification Employee termination benefits - 2 - 1 1 4 Ticona Kelsterbach plant relocation 13 - - - - 13 Commercial dis
Slide 23: Reg G: Equity affiliate results and reconciliation to affiliate EBITDA
23 Reg G: Equity affiliate results and reconciliation of operating profit to affiliate EBITDA - a non-U.S. GAAP measure - total - unaudited (Table 8) March 31, December 31, March 31, (in $ millions) 2012 2011 2011 Net Sales Ticona Affiliates - Asia 1 423 405 411 Ticona Affiliates - Middle East 2 304
Slide 24: Reg G: Proportional operating profit to proportional affiliate EBITDA
24 Reg G: Equity affiliate results and reconciliation of proportional operating profit to proportional affiliate EBITDA - a non-U.S. GAAP measure - Celanese proportional share – unaudited (Table 8 continued) M ar ch 3 1, De ce m be r 31 , M ar ch 3 1, (in $ m ill io ns ) 20 12 20 11 20 11 P ro po rt