Celanese Corporation · NYSE:CE
Celanese — Investor Day (May 2018)
18 slides from Celanese's investor day presentation, May 1, 2018
Slide 1: Celanese Investor Day, May 1, 2018
gy Celanese ‘The chemistry nse in Investor Day MAY 1, 2018
Slide 2: Mark Rohr, Chairman and Chief Executive Officer
Mark Rohr CHAIRMAN AND CHIEF EXECUTIVE OFFICER I N V E S T O R D A Y M A Y 1 , 2 0 1 8
Slide 3: Disclosures
2I N V E S T O R D A Y 2 0 1 8 Disclosures Forward Looking Statements This presentation, and statements made in connection with this presentation, contain “forward-looking statements,” which include information concerning the Company’s plans, objectives, goals, strategies, future revenues, synergies
Slide 4: What we will cover today
3I N V E S T O R D A Y 2 0 1 8 What we will cover today Mark Rohr Chairman and Chief Executive Officer Scott Richardson Chief Financial Officer Scott Sutton Chief Operating Officer Todd Elliott Senior Vice President Scott Sutton Chief Operating Officer Verghese Thomas Chief Technology and Innovation
Slide 5: Actions benefit all shareholders and improve our business
4I N V E S T O R D A Y 2 0 1 8 ...actions benefit all shareholders and improve our business Celanese one hundred years > Being a good corporate citizen and giving back to the community > Leading safety and environmental stewardship > Support of employees, their growth and opportunities > Respectful
Slide 6: Culture drives performance
5I N V E S T O R D A Y 2 0 1 8 Safety and environmental improvements from 2012 to 2017. Community impact in 2017 Culture drives performance ...benefiting all Celanese stakeholders SAFETY ENVIRONMENTAL COMMUNITY Celanese and employee donations employee hours volunteered total recordable incident rate
Slide 7: Celanese is structurally unique
6I N V E S T O R D A Y 2 0 1 8 Celanese is structurally unique EXCEPTIONAL POSITIONS RESPONSE TO GLOBAL OPPORTUNITIES GROW BY LEVERAGING OPPORTUNITIES CASH GENERATION, USE & STEWARDSHIP >700 MARGIN EXPANSION 18% FREE CASH FLOW GROWTH ~$3 CASH TO SHAREHOLDERS 13% ADJUSTED EPS GROWTH bps > Corporate f
Slide 8: Performance exceeded expectations
7I N V E S T O R D A Y 2 0 1 8 Performance exceeded expectations ...Celanese has delivered 201420132012 $4.07 $4.50 $5.67 $6.02 $6.61 $7.51 >$9.00 2015 2016 2017 2018F 13% CAGR 2012-2017 ADJUSTED EARNINGS PER SHARE EXCEEDING 3-YEAR PLAN COMMITMENTS > Adjusted EPS $8.00-$8.50 > Grow adjusted EBIT in
Slide 9: Consistent earnings and cash flow growth
8I N V E S T O R D A Y 2 0 1 8 …consistent earnings and cash flow growth Consistently strong free cash flow ¹ 2017 free cash flow before $316 million voluntary pension contribution. 2016 free cash flow before $300 million voluntary pension contribution. 2015 free cash flow before $177 million paymen
Slide 10: Strong returns on invested capital enable thoughtful investments
9I N V E S T O R D A Y 2 0 1 8 ...maintains strong returns on invested capital …enables thoughtful investments ACQUISITIONSRECENT INCREMENTAL EXPANSIONS NILIT PlasticsCool Polymers® Marchio pantoni Marchio quadricromia GROWTH CAPITAL ~$0.6 REVENUE ACQUIRED ~$500 ~1,800 PROJECTS ACQUIRED ~24% INVESTM
Slide 11: Predictably returning cash to shareholders
10I N V E S T O R D A Y 2 0 1 8 ~$3 billion since 2012 ...while also predictably returning cash DIVIDEND AND PAYOUT RATIO (in millions) SHARE REPURCHASES (in millions) 201420132012 $43 $83 $144 $174 $201 $241 2015 2016 2017 7% 18% 22% 201420132012 $45 $164 $250 $420 $500 $500 2015 2016 2017
Slide 12: Confidence in our ability to deliver
11I N V E S T O R D A Y 2 0 1 8 CE 151% Proxy Peers 77% DJUSCH Index 74% S&P 500 86% TSR = total shareholder return Source: FactSet Confidence in our ability to deliver Celanese performance recognized Celanese Proxy Peers S&P 500 DJ US Chemicals Index 88% 25% 35% 24% % CHANGE 3-YR TSR 5-YEAR TSR (Ap
Slide 13: Celanese positioned for continued success
12I N V E S T O R D A Y 2 0 1 8 Each element reinforces consistent value creation for shareholders Celanese positioned for continued success > Escalating need for solutions > Increased customer complexity > Broadest set of solutions > Global presence > Project-based model > Customized service > Bolt
Slide 14: EM dynamics support strong growth
13I N V E S T O R D A Y 2 0 1 8 2020201820202018 MARKET TIGHTNESS 95% CAPACITYMARKET TIGHTNESS 85% CAPACITY ...enhance performance and expand optionality EM dynamics support strong growth INDUSTRY DYNAMICS > Good market fundamentals > Need for solutions EMBEDDED GROWTH > Customer pull for Celanese s
Slide 15: Power of Engineered Materials
14I N V E S T O R D A Y 2 0 1 8 Power of Engineered Materials ADJUSTED EBIT (in millions)Robust opportunity market Broadest solutions portfolio Novel model Key growth initiatives 2017 Pipeline Growth Technology Programs Acquisitions 2020F $599 $130 $90 $80 ~$900+ 15% CAGR TWO TRANSACTIONS ADJUSTED B
Slide 16: AC dynamics support growth
15I N V E S T O R D A Y 2 0 1 8 Celanese ...organic growth and expanding opportunities AC dynamics support growth 2+26 PLAN ENVIRONMENTAL LAW JIANGSU 263 PLAN SHANDONG PROVINCE POLICY VAM plant Acid plant INDUSTRY DYNAMICS > Consistent demand growth > Constant capacity > Market tightness 20202018202
Slide 17: Power of the Acetyl Chain
16I N V E S T O R D A Y 2 0 1 8 Power of the Acetyl Chain ADJUSTED EBIT (in millions) 2017 Volume Growth Industry Utilization Operational Flexibility 2020F $575 $80 $95 $150 ~$900+ 16% CAGR Structural industry changes Expanding network and degrees of freedom Repeatable model Ready-now growth steps P
Slide 18: Continuing growth through 2020
17I N V E S T O R D A Y 2 0 1 8 1 2017 free cash flow before $316 million voluntary pension contribution Continuing growth through 2020 ADJUSTED EARNINGS PER SHARE FREE CASH FLOW (in millions)Advantaged positions Market dynamics Leverage opportunities High return investments Free cash flow growth 20