Celanese Corporation · NYSE:CE

Celanese — Q4 2012 Earnings Presentation

30 slides from Celanese's earnings presentation, Jan 28, 2013

  1. Slide 1: Celanese Q4 2012 Earnings

    1 Mark Rohr, Chairman and Chief Executive Officer Steven Sterin, Senior Vice President and Chief Financial Officer Celanese Q4 2012 Earnings Monday, January 28, 2013 EX 99.2

  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

  3. 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

  4. Slide 4: Mark Rohr, Chairman and Chief Executive Officer

    4 Mark Rohr Chairman and Chief Executive Officer

  5. Slide 5: Celanese Corporation Q4'12 Highlights

    5 ► Adjusted EPS growth driven by expanded Operating EBITDA margins in Consumer Specialties, Advanced Engineered Materials and Acetyl Intermediates ► Second highest Operating cash flow in our history despite a $100 million voluntary US pension contribution ► Strong cash generation in 2012 despite hi

  6. Slide 6: Advanced Engineered Materials Q4 Performance

    6 Key sequential highlights (Q4’12 vs. Q3’12) ► Volumes lower due to seasonal patterns and weak automotive demand in Europe ► Pricing down primarily due to mix Q4 Performance Factors Affecting Net Sales Changes Advanced Engineered Materials (in millions) 2% 0% -2% 0% 4% -7% 0% 1% -2% -6% Volume Pric

  7. Slide 7: Consumer Specialties Q4 Performance

    7 Key sequential highlights (Q4’12 vs. Q3’12) ► Demand remained strong ► Volume decreased but profitability increased due to actions related to closure of Acetate facility in Spondon UK ► Offset by lower spending, a planned inventory build and lower energy costs related to closure Consumer Specialti

  8. Slide 8: Industrial Specialties Q4 Performance

    8 Key sequential highlights (Q4’12 vs. Q3’12) ► Weak photovoltaic demand resulted in lower volumes and less favorable mix in EVA Performance Polymers ► Normal seasonal patterns resulted in lower volumes in Emulsions Industrial Specialties Q4 Performance Factors Affecting Net Sales Changes -8% 0% -2%

  9. Slide 9: Acetyl Intermediates Q4 Performance

    9 Key sequential highlights (Q4’12 vs. Q3’12) ► End-market demand remained weak ► Pricing higher in downstream derivatives as raw material costs helped push pricing ► Favorable currency impact Acetyl Intermediates Q4 Performance Factors Affecting Net Sales Changes -9% 0% -1% -5% -3% -1% 0% 2% 2% -5%

  10. Slide 10: Reporting change

    10 Reporting change Potential Change ► Beginning in Q1 2013 we will focus on Segment Income rather than Operating EBITDA ► Segment Income for Celanese is Operating EBITDA by segment minus depreciation and amortization Consideration ► Consistent with how we run the business and how we plan to incent

  11. Slide 11: 2013 Adjusted EPS growth expectation

    11 January: 2013 Adjusted EPS growth expectation $3.80 2012 Adjusted EPS Tax rate Acetate footprint rationalization related actions Nanjing Ethanol Innovation & productivity 2013 Adjusted EPS expectation $0.20-$0.30 $0.05-$0.10 ~$4.25-$4.30 ► Planning on continued slow global economic growth ► Earni

  12. Slide 12: Outlook for 2013

    12 Outlook for 2013 Advanced Engineering materials ► Innovation increasing pounds per vehicle and offsetting 3% lower auto builds in Europe ► Industrial production & consumer electronics to grow modestly in Asia and US but offset by Europe Consumer Specialties ► Growth driven by Celanese-specific ma

  13. Slide 13: Celanese – Strategic focus areas

    13 Celanese – Strategic focus areas ►Methanol unit in Clear Lake, Texas ►Continuing negotiations with potential partners ►Anticipate permitting in 2013 and completion by mid-2015 ►Indonesia fuel ethanol opportunity ►Working with Pertamina, under Joint Statement of Cooperation, to define potential su

  14. Slide 14: Steven Sterin, Senior Vice President and Chief Financial Officer

    14 Steven Sterin Senior Vice President and Chief Financial Officer

  15. Slide 15: Track record of strong cash flow generation

    15 Track record of strong cash flow generation $452 $638 $722 $294 $326 $339 0% 2% 4% 6% $0 $200 $400 $600 $800 2010 2011 2012 Cash Flow from Operations Adjusted Free Cash Flow (FCF) Adjusted FCF % Revenue 2013 ► Expect to continue to generate strong adjusted free cash flow ► Operating cash flow wil

  16. Slide 16: Improved maturity profile provides long-term financial flexibility

    16 Improved maturity profile provides long-term financial flexibility 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Mid-2010 Maturity Profile Current Maturity Profile ► Significant progress on reducing net debt and improving debt profile ► Reduced net debt by $196 million to $2.1 billion, l

  17. Slide 17: Return of cash to shareholders

    17 Return of cash to shareholders ► 25% increase in dividends in 2012 ► $267 million dividends paid (common and preferred) since IPO ► Spent ~$900 million on share repurchases, with an average price of $38, since end of 2006 ► In addition, invested in growth and reduced debt by more than $900 millio

  18. Slide 18: Strategic Affiliate Performance

    18 ► $9 million higher earnings from Asian affiliates due to the timing of a turnaround in Q4 of 2011 that did not occur in Q4 2012 ► Infraserv earnings increased $22 million due to gain related to debt restructuring at a subsidiary of one of the Infraserv affiliates; Gain excluded from Operating EB

  19. Slide 19: Appendix

    19 Appendix Notes: References on the following slides to tables correspond to the tables included with Celanese press release dated January 28th, 2013

  20. Slide 20: Segment data and reconciliation of operating profit to operating EBITDA

    20 Reg G: Segment data and reconciliation of operating profit (loss) to operating EBITDA – a non-U.S. GAAP measure – unaudited (Table 1) De ce m be r 3 1, Se pt em be r 3 0, De ce m be r 3 1, (in $ m illi on s) 20 12 20 12 20 11 Ne t S al es Ad va nc ed E ng ine er ed M ate ria ls 29 9 32 2 29 2 Co

  21. Slide 21: Reconciliation of net earnings to operating EBITDA

    21 Reg G: Reconciliation of consolidated net earnings (loss) to operating EBITDA – a non-U.S. GAAP measure – unaudited (Table 1A) December 31, September 30, December 31, (in $ millions) 2012 2012 2011 2012 2011 2010 2009 Net earnings (loss) attributable to Celanese Corporation 95 117 95 605 607 377

  22. Slide 22: Adjusted earnings per share reconciliation

    22 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 per share Earnings (loss) from continuing operations 97 0.60 119 0.74 96 0.61 609 3.81 Deduct: Income tax (pro

  23. Slide 23: Other charges and other adjustments

    23 Reg G: Other charges and other adjustments – reconciliation of a non-U.S. GAAP measure – unaudited (Table 7) Other Charges (Gains), net: December 31, September 30, December 31, (in $ millions) 2012 2012 2011 2012 2011 2010 2009 Employee termination benefits 4 1 4 6 22 32 105 Plant/office closures

  24. Slide 24: Q4 2012 Other charges and adjustments by segment

    24 Q4 2012 Other charges and other adjustments by segment – reconciliation of a non-U.S. GAAP measure – unaudited Income Statement (in $ millions) AEM CS IS AI Other Total Classification Employee termination benefits - 1 - 2 1 4 Kelsterbach plant relocation 2 - - - - 2 Plumbing actions (1) - - - - (

  25. Slide 25: Q3 2012 Other charges and adjustments by segment

    25 Q3 2012 Other charges and other adjustments by segment – reconciliation of a non-U.S. GAAP measure – unaudited Income Statement (in $ millions) AEM CS IS AI Other Total Classification Employee termination benefits - 1 - 1 (1) 1 Kelsterbach plant relocation 3 - - - - 3 Plumbing actions (4) - - - -

  26. Slide 26: Q4 2011 Other charges and adjustments by segment

    26 Q4 2011 Other charges and other adjustments by 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 Kelsterbach plant relocation 4 - - - - 4 Asset impairments - - - 1 - 1

  27. Slide 27: Adjusted free cash flow reconciliation

    27 Reg G: Adjusted free cash flow – reconciliation of a non-U.S. GAAP measure – unaudited (In $ millions) 2012 2011 2010 Net cash provided by operating activities 722 638 452 Adjustments to operating cash for discontinued operations (2) 9 58 Net cash provided by operating activities from continuing

  28. Slide 28: Net debt reconciliation

    28 Reg G: Net debt – reconciliation of a non-US GAAP measure – unaudited (in $ millions) 2012 2011 2010 2009 Short-term borrowings and current installments of long-term debt - third party and affiliates 168 144 228 242 Long-term debt 2,930 2,873 2,990 3,259 Total debt 3,098 3,017 3,218 3,501 Less: C

  29. Slide 29: Equity affiliate results and affiliate EBITDA reconciliation

    29 Reg G: Equity affiliate results and reconciliation of operating profit to affiliate EBITDA – a non-U.S. GAAP measure – total – unaudited (Table 8) (in $ millions) 2012 2011 2012 2011 Net Sales Affiliates - Asia 1 406 405 1,701 1,637 Aff iliates - Middle East 2 363 353 1,328 1,204 Infraserv Affili

  30. Slide 30: Proportional affiliate EBITDA reconciliation

    30 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) (i n $ m ill io n s) 20 12 20 11 20 12 20 11 P ro p o rt io n a l N e t S a le s A ff ilia t

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