Celanese Corporation · NYSE:CE
Celanese — Investor Day (September 2001)
98 slides from Celanese's investor day presentation, Sep 11, 2001
Slide 1: Analyst Conference
Celanese Analyst Conference September 11th, 2001 Frankfurt 1 Analyst Conference, September 11th, 2001
Slide 2: Forward-Looking Statements
Celanese Forward-Looking Statements Statements in this presentation relating to future status or circumstances, including statements regarding management’s plans and objectives for future operations, products and services, are forward-looking statements of goals and expectations based on estimates a
Slide 3: Agenda
Celanese Agenda page > Overcoming Adversity – Building for the Future Claudio Sonder 4 > Rough Seas – Charting the Right Course Perry Premdas 11 Business Overviews > Celanese Chemicals David Weidman, John O‘Dwyer 20 > Ticona-The Technical Polymers Business Ed Muñoz, Stefan Sommer 39 > Acetate Gerold
Slide 4: Overcoming Adversity - Building for the Future
Celanese Overcoming Adversity - Building for the Future Claudio Sonder Chairman Celanese AG 4 Analyst Conference, September 11th, 2001
Slide 5: Business Environment
Celanese Business Environment Regions US Total Industry Production Index* 0.80% Share Growth of CZ sales 2001/2002 0.60% 0.40% USA 46% < 2% 0.20% Europe 36% about 2% 0.00% Asia 6% < 2% -0.20% -0.40% -0.60% -0.80% -1.00% Mar-01 May-01 Jul-00 Jul-01 Apr-01 Aug-00 Sep-00 Jan-01 Feb-01 Jun-01 Oct-00 Nov
Slide 6: What Has Happened Since Our Last Analyst Conference
Celanese What Has Happened Since Our Last Analyst Conference in September 2000 in Texas > Successfully acquired the polyvinyl alcohol business of Air Products (€359 million) – integration has been excellent > Completed FY 2000 according to market expectations > Announced major restructuring on May 1
Slide 7: ... continued
Celanese ... continued > Declining demand, market oversupply and price pressure at Chemicals and Ticona > We see little chance of an upturn before late 2002 > Further reduced earnings outlook announced on August 31st > We are now taking immediate action to reduce costs (Initiative Forward: € 260 Mil
Slide 8: What Are We Doing - Focus and Forward Initiatives
Celanese What Are We Doing - Focus and Forward Initiatives > Focus = Project Challenge: Improve EBITDA (1) by €100 million = Project Cash: Decrease working capital by €100 million = Project Value: Reduce capex to €235 million > Forward = Redesign and reorganize = Restructure businesses, sites and ad
Slide 9: Where We Are - Leading Global Positions in Core Products
Celanese Where We Are - Leading Global Positions in Core Products Acetyl Products Technical Polymers Ticona Performance Products E Sales: € 2,106 m Sales: € 923 m X Sales: € 409 m P Products: Acetic acid, vinyl Products: Polyacetal, polyester, UHMW-PE, liquid Business: Nutrinova food A acetate, poly
Slide 10: Where We Are Going - Strategic Actions and Growth
Celanese Where We Are Going - Strategic Actions and Growth > Internal growth of 4-5% p.a., after refocusing the portfolio > Operational performance should improve sharply > Stepping up efforts to participate in industry rationalization-partnering > External growth through acquisitions is a difficult
Slide 11: Rough Seas - Charting the Right Course
Celanese Rough Seas - Charting the Right Course Perry Premdas CFO Celanese AG 11 Analyst Conference, September 11th, 2001
Slide 12: Financial Overview
Celanese Financial Overview in € millions H1 2001 H1 2000 chg. in % FY guidance Net sales 2,727 2,490 +10 EBITDA(1) 266 275 -3 ~400 EBITDA margin(1) 9.8% 11.0% Special charges 0 5 n.m. ~260 Net earnings 38 37 +3 EPS (€), continuing ops. (1,2,3) 0.72 0.98 -27 up to (1.00) 6/30/01 12/31/00 chg. in % F
Slide 13: Segment Performance Half Year
Celanese Segment Performance Half Year EBITDA excl. special charges in € m. and % of sales 160 H1 2000 H1 2001 12% 140 120 100 9% 18% 80 60 14% 15% 7% 9% 19% 17% 40 3% 20 0 Acetyl Products Chemical Acetate Ticona Performance Intermediates Products Products 13 Analyst Conference, September 11th, 2001
Slide 14: Volume Trend Under Pressure
Celanese Volume Trend Under Pressure Year-on-year percent change 15 Acetyl Products Ticona 10 5 0 -5 -10 -15 -20 Q3 2000 Q4 2000 Q1 2001 Q2 2001 ... expected to continue in H2 2001 14 Analyst Conference, September 11th, 2001
Slide 15: Accounting for Goodwill
Celanese Accounting for Goodwill > Accounting for goodwill and other intangible assets (SFAS 142) = effective as of January 1 st, 2002 = no more depreciation of goodwill = obligation to impairment test at the reporting unit level > Risk factor = goodwill impairment due to economic downturn, restruct
Slide 16: Financial Targets Unchanged
Celanese Financial Targets Unchanged (in %) 1999* 2000* H1 2001* Goals EBITDA(1) margin 8.7% 9.6% 9.8% 15%-20% Leverage(2) 24.9% 29.1% 28.8% 30%-40% (1) Excluding special charges (2) Total debt to total debt + shareholder‘s equity > Further improve profitability > Continue product portfolio optimiza
Slide 17: "Focus" Initiative Update
Celanese “Focus” Initiative Update > Target EBITDA increase in 2001 by €100 million - spending benefits offset by volume decline = Several projects in cost reductions, procurement, service sharing, etc. = Positive impact will be offset by declining volumes/margins in Chemicals and volumes in Ticona
Slide 18: Initiating Project "Forward"
Celanese Initiating Project “Forward“ > Closure of high cost acetic acid and VAM production sites > Consolidating research and technical centers > Delay of expansion projects > Cost reductions at support and administration facilities > Redesign of business and administrative processes across the com
Slide 19: FY 2001 Guidance
Celanese FY 2001 Guidance > Key assumptions = Business environment: low demand (Ticona, Chemicals), pressure on prices (Chemicals), no improvement in 2001 = Market gas costs: Q3/Q4 2001 in upper $2 to lower $3 range = US $ / € exchange rate: 0.90 = SAR (Stock appreciation rights): share price per en
Slide 20: Celanese Chemicals
Celanese Celanese Chemicals Dave Weidman CEO Chemicals 20 Analyst Conference, September 11th, 2001
Slide 21: Overview of Chemicals
Celanese Overview of Chemicals in € million H1 2001 Business Sales EBITDA* Major Products Strategic Position Acetyls 1,185 143 Acetyl Acetic Acid, VAM, MEOH Grow ADP Esters, PE Maintain PVOH PVOH Grow Chemical Intermediates 568 17 Acrylates Acrylic Acid, Esters Enhance value Oxo Butanol, 2EH Enhance
Slide 22: Chemicals - Current State of the Business
Celanese Chemicals – Current State of the Business > Significant drop in acetic acid and vinyl acetate monomer prices in both Asia and Europe in H2 2001. > Decline in volume caused by significant slowdown in those regional economies. > US economy shows no compelling evidence of recovery from product
Slide 23: Improving Chemicals
Celanese Improving Chemicals Optimize Restructure Cultural Alignment > Integrated > Technology close to > ESHA performance company manufacturing > Six Sigma culture > Process > Acid system > People excellence development efficiencies leverage > Change as a competency > Vinyl acetate > Low cost syste
Slide 24: AO Plus and VAntage Technology
Celanese AO Plus™ and VAntage™ Technology Technology Description Expected Benefit AO Plus™ • Advanced methanol • Capacity increases of 20% carbonylation technology • Improved manufacturing for the manufacture of costs acetic acid VAntage™ • A breakthrough in VAM • Extends catalyst life manufacturing
Slide 25: Restructuring to Enhance Profitability Q2 2001
Celanese Restructuring to Enhance Profitability Q2 2001 > Bay City/Clear Lake - streamlined administrative, technical, maintenance and production operations, resulting in 150 – 200 workforce reductions > Edmonton Pentaerythritol (PE) - idled downstream acetyl products capacity > Rock Hill Terminal -
Slide 26: Restructuring to Enhance Profitability Q3 2001
Celanese Restructuring to Enhance Profitability Q3 2001 > Corpus Christi - relocate R&D efforts to sites closer to manufacturing operations > Edmonton - shutdown disadvantaged acetic acid unit > Bishop/Cangrejera - continuing to progress with restructuring efforts > VAM overcapacity - shutdown or mo
Slide 27: Chemicals ESHA 2000 Performance
Celanese Chemicals ESHA 2000 Performance 3.5 3.33 3.18 3.0 2.49 2.5 2.36 2.45 OSHA Incident Rate 2.01 2.0 1.82 1.53 1.65 1.5 1.37 1.39 1.21 1.15 0.94 1.0 0.73 0.83 0.85 0.91 0.5 0.0 Shell Chemical Chevron Phillips Oxychem ExxonMobil Air Products Honeywell Rohm&Haas Huntsman Celanese Solutia ATOFINA
Slide 28: Six Sigma Is More Than Tools or Projects
Celanese Six Sigma Is More Than Tools or Projects Cause and effect Failure modes Process control Tools Statistical methods Site champions Methodology Stretch productivity goals and projects Training Senior management involvement Strategic change process Strategic intent It’s a disciplined approach t
Slide 29: Six Sigma Implementation Black Belts
Celanese Six Sigma Implementation Black Belts WAVE 1 WAVE 2 WAVE 3 February 2001 April 2001 August 2001 People 34 25 40 Trained Celanese Chemicals Ticona Celanese Acetate 29 Analyst Conference, September 11th, 2001
Slide 30: Acetyl Products
Celanese Acetyl Products John O’Dwyer Vice President & General Manager, Acetyl Products 30 Analyst Conference, September 11th, 2001
Slide 31: Acetic Acid
Celanese Acetic Acid Market > Presently oversupplied > Demand down by approximately 5%; primarily VAM; PTA still growing > Rapid price/margin drops; Asia and Europe heavily impacted > Spot pricing approaching shutdown economics for high cost producers Outlook > No new capacity to hit market in 2002
Slide 32: Vinyl Acetate Monomer
Celanese Vinyl Acetate Monomer Market > Supply excessive due to new unit start-ups > Global demand down approximately 10%; all regions impacted > Pricing and margin erosion > Pricing approaching cash cost of small producers Outlook > Demand pick-up needed to rebalance market - GDP driven > Cycle of
Slide 33: Polyvinyl Alcohol
Celanese Polyvinyl Alcohol Market > Weak US volumes due to automotive, textiles, and adhesives > North American price pressure due to imports > “Relief” on energy cost after suffering through high US Gulf Coast natural gas jump Outlook > Margin gains require improvement in underlying end use demand
Slide 34: New Acetyl Entrants?
Celanese New Acetyl Entrants? Market > Existing producers struggling with profitability; limiting investments Raw Materials > Middle East threat - some capacity will probably be built, but not with a competitive cost structure compared to AO Plus™ or Cativa™ > CO cost is key; driven by hydrogen dema
Slide 35: Acetic Acid World Balance
Celanese Acetic Acid World Balance kt Capacity Demand 10,000 8,000 6,000 4,000 2,000 0 1998 1999 2000 2001 2002 2003 2004 2005 Source: Celanese estimates, 2001 35 Analyst Conference, September 11th, 2001
Slide 36: Vinyl Acetate World Balance
Celanese Vinyl Acetate World Balance kt Capacity Demand 5,000 4,000 3,000 2,000 1,000 0 1998 1999 2000 2001 2002 2003 2004 2005 Source: Celanese estimates, 2001 36 Analyst Conference, September 11th, 2001
Slide 37: Case Study – VAM Ethylene Efficiency
Celanese Case Study – VAM Ethylene Efficiency > Original objective = Improve raw material efficiency by 1% = Planned EBITDA impact: $600,000 per year > Results = On track for full implementation with expected improvement of $1.5 to 2.5 million/yr > Learnings = Traditional Approach: Operating at high
Slide 38: Summary: Strengthening our Business in a Tough Economic Environment
Celanese Summary: Strengthening our Business in a Tough Economic Environment > Plan in place to strengthen solid businesses > Restructuring activities to improve our competitive position > Optimizing efforts to leverage strengths in a broad, global enterprise > Creating cultural environment that ali
Slide 39: Ticona - The Technical Polymers Business
Celanese Ticona - The Technical Polymers Business Edward Muñoz CEO Ticona Stefan Sommer COO Ticona 39 Analyst Conference, September 11th, 2001
Slide 40: What we Want to Share with you Today...
Celanese What we Want to Share with you Today... > We believe that the engineering polymers industry will continue to grow. > However, it will be a more challenging and competitive environment > We are addressing these challenges by = Reviewing our product portfolio = Moving investment timing = Impr
Slide 41: Engineering Technical Polymers - Growth in All Regions, Especially Asia
Celanese Engineering Technical Polymers* - Growth in All Regions, Especially Asia Global demand 2000 : 5.5 m t ROW Japan 1.2% NAFTA Region mt Avg. Growth 12.6% 32.4% Rate 00/05 NAFTA 1.7 7% Europe 1.7 8% Asia/Pacific Asia 1.2 11% 22.2% Japan 0.7 5% ROW 0.1 8% TOTAL 5.5 8% Europe 31.6% *ETP = PA 6/PA
Slide 42: Increased Market Challenges
Celanese Increased Market Challenges > Market dynamics = Globalization of customers requires global presence of polymer supplier = Ability to deliver solutions essential for sustainable interface/ cooperation with customers = Ease and cost-effective transaction and distribution essential = Value of
Slide 43: Ticona - Current State of our Business
Celanese Ticona - Current State of our Business > Globally, we experienced a sales downturn of 11% in H1 2001 vs H1 2000; in Q2 2001 decline increased to -15% > Significant, ongoing volume weakness in US in nearly all segments; 2002 also is expected to be challenging. > EU volume weakening mainly in
Slide 44: Our Product Portfolio - Key Strategic Elements
Celanese Our Product Portfolio - Key Strategic Elements > Market leadership > Global presence > Excellent cost and technology position Cost to achieve and/or maintain Industry Technology consolidation Market growth 44 Analyst Conference, September 11th, 2001
Slide 45: Reviewing our Product Portfolio
Celanese Reviewing our Product Portfolio Maintain leadership Evaluate profitable Evaluate partnerships position for products growth potential > no stand-alone #1 or > having a #1 or #2 > to achieve a leading #2 position achievable position and position and/or > no stand-alone global > a global prese
Slide 46: Limiting Investments
Celanese Limiting Investments > Investments on Schedule = GUR® plant in Bishop - construction on schedule - start-up 2002 = POM China plant (PPC/MGC/Ticona) - negotiations on schedule > Delayed / Postponed Investments = POM expansion in Kelsterbach - delayed to H2 2003 = LCP expansion in Shelby - do
Slide 47: Improving Profitability by Driving Costs Down
Celanese Improving Profitability by Driving Costs Down > Marketing & sales = Implementing channel strategy ? Service offerings according to customer buying behaviors - global role out and training ? eChannels in place - eBusiness sales count for about 16% of total sales in H2 2001 (e.g. “Buy Ticona
Slide 48: ... Continuing
Celanese ... Continuing > Production/logistics = Advanced supply chain management tools - e.g. project “eSAP” = Roll out of Six Sigma at all manufacturing sites and in selected administration areas = Implementing and extending eProcurement in Europe to reduce administration costs - more than 1,500 o
Slide 49: Roll Out Six Sigma at Ticona
Celanese Roll Out Six Sigma at Ticona > Quickly adopting Six Sigma methodology in manufacturing and administration = 4 Black Belts trained in Bishop, TX = Champions trained for all manufacturing sites and administration site in Summit, NJ = 15 additional Black Belts, including 2 for the administrati
Slide 50: Capturing Growth as a Technology Enabler and Trend Setter
Celanese Capturing Growth as a Technology Enabler and Trend Setter in Application Development Markets Products Technology Automotive Product development Focus on customer General Industries needs 2-component injection Strong partner for the POM, PBT/PET, PPS, LCP, molding, MuCell™ industry in applic
Slide 51: Technical Competencies
Celanese Technical Competencies Emerging Growth Core Ticona: Hot Develops new technologies runner molds (POM, PBT) Injection > Hard-Soft Saturation molding (all products) > Long fiber technology > Powder applications Lead frame > Barrier packaging (LCP, PPS, PBT) Molded interconnect Participates in
Slide 52: Medical – Focus on Growth Segments
Celanese Medical – Focus on Growth Segments Example: Glaxo Wellcome Inhaler Differentiation by ease of > Functional components handling: Glaxo injection molded from Wellcome Inhaler for asthma Hostaform® (POM) patients contains 60 small doses of > Simplified medication the drug > Increased patient s
Slide 53: Ticona as a Technology Enabler - Cellphones
Celanese Ticona as a Technology Enabler - Cellphones Volume control Hostaform® (POM) Display-carrier Forton® (PPS) Antenna frame Hostaform® (POM) SIM-lock Vectra® (LCP) PSGA Vectra® (LCP) Battery housing I/O connector Vectra® (LCP) Vectra® (LCP) 53 Analyst Conference, September 11th, 2001
Slide 54: Automotive Trends Spell Opportunities
Celanese Automotive Trends Spell Opportunities Drivers Trends Issues > Cost reduction > Functional integration > Recycling - (End of life > Weight reduction > Low emission/ odor in vehicle directive) > Integration in modules interior applications > Emissions and systems > Metal replacements > Strate
Slide 55: Fuel Cells: Promising Area for Engineering Polymers
Celanese Fuel Cells: Promising Area for Engineering Polymers Ticona polymers are good candidates for usage in fuel cell stacks ... Bipolarplates Vectra® LCP/Fortron® PPS Endplates Fortron® PPS ... and for peripheral components ... Hostaform® POM Fortron ® PPS GUR® PE-UHMW Vectra® LCP Celanex ® PBT 5
Slide 56: Summary
Celanese Summary > Very tough business environment > Taking strong actions to improve profitability > Continue innovation and application development 56 Analyst Conference, September 11th, 2001
Slide 57: Acetate
Celanese Acetate Gerold Linzbach President and General Manager Acetate 57 Analyst Conference, September 11th, 2001
Slide 58: Acetate Products Business Update
Celanese Acetate Products Business Update Tow > Stable market development > We position tow in the growth segments and regions Filament > Experiencing an accelerated market decline in our key markets & regions, especially in linings and the US > Customized strategy focusing on shutdowns, increasing
Slide 59: In 2001 the Global Tow Market Utilization May Meet or Exceed 90%
Celanese In 2001 the Global Tow Market Utilization May Meet or Exceed 90% K tons Utilization >90% ? 85% 87% 84% > First half year/sales, 573 568 590 610 2001 better than 2000 557 564 556 554 (in all regions) 1998 1999 2000 * 2001 Sales Production * 2001 Annualized; Source: Celanese estimates 59 Anal
Slide 60: We Continue to Position Our Tow Business for the Future
Celanese We Continue to Position Our Tow Business for the Future > Signed memorandum of understanding for feasibility study in China > Business share with top 5 customers increased > Enhanced focus on performance products > Inexpensive increase of tow capacity by leveraging existing assets and techn
Slide 61: The Filament Market Seems to be Back to "Standard Reduction"
Celanese The Filament Market Seems to be Back to “Standard Reduction” World total deliveries (GAMA statistics) 180,000 160,000 140,000 120,000 Metric tons 100,000 80,000 60,000 40,000 20,000 0 1998 1999 2000 2001 * Tubes and Packages 112,627 94,851 93,906 91,000 Beams 45,251 31,131 28,292 23,000 * F
Slide 62: We Were Hit Very Hard By the Recent Textile Market Decline
Celanese We Were Hit Very Hard By the Recent Textile Market Decline, Due to ... Americas major end-uses (GAMA statistics) 80,000 60,000 Metric Tons 40,000 20,000 0 1998 1999 2000 2001 * Other 22,792 19,903 19,150 21,000 Woven Apparel 22,614 14,100 13,900 9,000 Linings 22,859 19,721 17,188 8,000 ...
Slide 63: This Dynamic Filament Market Requires Customized Solutions
Celanese This Dynamic Filament Market Requires Customized Solutions > Productivity increases required throughout value chain > Technology upgrades / enhancements > Simplified business model via less complexity 1997 Future Sites 5 2-3 Employees(1) 2,200 800 Sales/Employee(1) 180,000 € 160,000 € (1) E
Slide 64: We Will Increase Our Share in More Stable Regions & Markets
Celanese We Will Increase Our Share in More Stable Regions & Markets South Korea and Japan major end-uses (GAMA statistics) 60,000 50,000 40,000 Metric Tons 30,000 20,000 10,000 0 1998 1999 2000 2001 * Other 10,037 10,037 10,037 8,000 Woven Apparel 13,420 13,420 13,420 9,000 Linings 19,510 18,028 19
Slide 65: Leveraging Technology and Improving Processes
Celanese Leveraging Technology and Improving Processes SGA % Sales Working Capital as % of Sales 7.8 25 5.8 17 1997 after 1997 after Headcount Controllable Cost - in € Million 5,030 4,314 477 398 330 2,600 1997 1998 after 1997 1998 after Substantial reduction in support cost and working capital 65 A
Slide 66: Still, Challenged by Various Events
Celanese Still, Challenged by Various Events > Process interruptions > High volatility in natural gas cost > Coal prices increased > Financial difficulties at textile customers 66 Analyst Conference, September 11th, 2001
Slide 67: We Kept Our Focus on the Operational Performance
Celanese Despite These Challenges And Restructuring Efforts, We Kept Our Focus on the Operational Performance > Safety > Yields > Product quality / ends out > Customer satisfaction 67 Analyst Conference, September 11th, 2001
Slide 68: Safety Performance
Celanese Safety Performance Level I & II Injuries 45 40 35 30 25 20 15 10 5 0 Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Cumulative YTD Level I and II Injuries 2000 Actual Target = < 34 Injuries 68 Analyst Conference, September 11th, 2001
Slide 69: Celriver Through-Plant Yield Rate
Celanese Celriver Through-Plant Yield Rate (1998 - 2001) 100 88.8 89.3 90.3 90 81.8 80 70 % Q1 Conversion 60 50 40 30 20 10 0 1998 1999* 2000* 2001* YTD * - reflects aged out / planning 69 Analyst Conference, September 11th, 2001
Slide 70: Celriver Filament Part Runs per Metric Ton
Celanese Celriver Filament Part Runs per Metric Ton 16 15.3 14 12.8 12 10 9.3 7.6 8 6 4 2 0 1998 1999 2000 2001 YTD 70 Analyst Conference, September 11th, 2001
Slide 71: Customer Satisfaction
Celanese Customer Satisfaction > Overall product returns from customers have been zero for over two years. In 2000, this performance was key to Celanese Acetate being presented with the “Gold Supplier Award” by Philip Morris. The award was presented in the first half of 2001. 71 Analyst Conference,
Slide 72: Summary
Celanese Summary > We have been challenged by market dynamics, economic conditions and unplanned events > Despite these challenges, we have implemented actions in all areas of our business that have kept us competitive > We have targeted areas of growth to sustain & improve our performance > We will
Slide 73: Nutrinova - Well Positioned for Growth
Celanese Nutrinova - Well Positioned for Growth Arthur Steinmetz President & CEO Nutrinova 73 Analyst Conference, September 11th, 2001
Slide 74: Expertise in Sweetening & Food Protection
Celanese Expertise in Sweetening & Food Protection Core Business >Sweetening: High intensity sweetener Sunett® (Acesulfame K) > Food Protection: Sorbic acid, potassium & calcium sorbates > New: Dietary fibers (Caromax, Canadian Harvest, ß-Glucan) Strength Sales by segment > Strong market positions
Slide 75: Worldwide Presence in Key Markets
Celanese Worldwide Presence in Key Markets Copenhagen, DK London, UK Moscow, RUS Brussels, B Frankfurt, HQ and production Paris, F Somerset, USA Barcelona, ESP Tokyo, JP Mexico City, MEX 2000 Sales by region = € 124 Mio. Latin America ROW Manila, PH 15% 5% Sao Paulo, BR Europe North 45% Buenos Aires
Slide 76: Market Dynamics and Chances for Growth
Celanese Market Dynamics and Chances for Growth Consumer Markets > Demand for healthier food “healthful ingredients” > Convenience food “premium food additives” > Differentiation of brands: taste “multi ingredient concepts” Customer Requirements > Customer globalization supplier globalization > Valu
Slide 77: Nutrinova Sweetening: Drivers for Growth
Celanese Nutrinova Sweetening: Drivers for Growth > Taste: Match “gold standard” Growth by volume (mt) = sugar taste 14000 > Improved economics through 12000 Sunett® blends 10000 Aspartame > Product performance: 8000 AceK = stability 6000 = safety 4000 Sunett® Multi Sweetener 2000 concept is the lea
Slide 78: Nutrinova Sweetening: Sources of Growth
Celanese Nutrinova Sweetening: Sources of Growth Global development of sweetening market Main applications Other Sugar High fructose corn syrup HIS 9% Dairy 000 mt sugar equivalent Beverages 200.000 2% 23% Confectionary 150.000 7% Baked goods 100.000 9% 50.000 0 2000 2005 (E) 2010 (E) Table top 50%
Slide 79: Driving Nutrinova Growth: Internal and External
Celanese Driving Nutrinova Growth: Internal and External Innovation initiative > Target: portfolio expansion tied to Nutrinova’s core business > Nutrinova innovation and market introduction team > Investment: Sherbrooke Capital Health and Wellness Fund, USA > First results: 3 new dietary fiber produ
Slide 80: BalancePlus - a Superior Weighting Agent
Celanese BalancePlus - a Superior Weighting Agent > BalancePlus™ is an innovative weighting agent for use in beverages, based on Sucrose Acetate IsoButyrate (SAIB) > SAIB - food grade, the raw material, is produced by Celanese Chemicals > BalancePlus™ stabilizes flavor emulsions of citrus flavored
Slide 81: The Food Protection Market
Celanese The Food Protection Market Organic Preservatives* - 2000 By volume (mt) - 2000 By value (in m. US $) - 2000 Proprionates 32.000 Proprionates 42 Mio. Sorbates 136 Mio. Benzoates Sorbates Benzoates 40.000 33.800 42 Mio. Expected market growth: 2% * does not include animal feed Source: Celanes
Slide 82: Sources of Growth in Food Protection
Celanese Sources of Growth in Food Protection Nutrinova Sorbates®: Sales by segment > Customized preservation systems based on blends with sorbates Others Baked goods 19% 16% (gaining market share from competitive products) Beverages > Growth opportunities through Animal feed 13% 12% increasing dema
Slide 83: Nutrinova Road Map for Growth
Celanese Nutrinova Road Map for Growth Flavor- “Taste” and “sweeteness” are key sweetener drivers for product performance provider E.g. capability to provide Sunett ® & Solution provider BalancePlus™ for the beverage industry Strengthen portfolio Dietary fibers and establish market share Improve pro
Slide 84: Wrap-Up
Celanese Wrap-Up Claudio Sonder Chairman Celanese AG 84 Analyst Conference, September 11th, 2001
Slide 85: Wrap-Up: We Are Committed to Creating Value
Celanese Wrap-Up: We Are Committed to Creating Value > Very tough environment in 2001 - probably in 2002 as well > Implement change to ensure long-term market and cost leadership - challenging actions under way > Take advantage of opportunities to reposition Celanese within the consolidation of the
Slide 86: Driving Value
Celanese Driving Value Ernst Schadow Chief Technology Officer Celanese 86 Analyst Conference, September 11th, 2001
Slide 87: Companies With Growth Mainly Through Innovation Create Superior Shareholder Value
Celanese Companies With Growth Mainly Through Innovation Create Superior Shareholder Value Performance index Primary growth lever Deviation from average Fortune 500 cumulated TRS (%)** survivors * Organic growth/ expansion In low-growth Grow organically -20 in core business industries, even moderate
Slide 88: What Do Innovations Mean for Celanese?
Celanese What Do Innovations Mean for Celanese ? Corporate Development ventures eBusiness partnerships with customers with customers & partners > New paths to innovation > Value chain enhancement > Market success Process and New ideas and product New processes opportunities optimization and products
Slide 89: Future innovations
Celanese Future innovations Technology and Core product New growth cost leadership enhancement opportunities Efficiency New products New business and capacity and applications > Vinylacetate monomer > Vectra®-T: Highly > Membrane electrode VAntage™ resistant to extreme assemblies for fuel > Acetic a
Slide 90: Creating and Capturing Value from Technologies
Celanese Creating and Capturing Value from Technologies Horst-Tore Land CEO Celanese Ventures 90 Analyst Conference, September 11th, 2001
Slide 91: Celanese Ventures
Celanese Celanese Ventures > Corporate venturing organization of Celanese AG > Offices in Frankfurt, Germany Charlotte, N.C. Summit, N.J. > 141 employees (Germany: 64, U.S.: 77) > Focused on advanced materials and platform technologies (biotechnology) 91 Analyst Conference, September 11th, 2001
Slide 92: Celanese Ventures: Engine for Innovation
Celanese Celanese Ventures: Engine for Innovation > High temperature fuel cells Membrane Electrode Assemblies (MEAs) > Polybenzimidazole (PBI) advanced materials > Biotechnology platform targeting functional food applications > Catalyst research for performance polymers > Covion Organic Semiconducto
Slide 93: Fuel Cells: A future disruptive technology
Celanese Fuel Cells: A future disruptive technology Fuel cells ... > are quiet and clean > are not dependent on coal and oil > are durable and reliable > are efficient and high performance > can be used for all applications where electricity and heat are needed 93 Analyst Conference, September 11th,
Slide 94: Future Growth of Fuel Cell Industry Depends on Technology Improvements
Celanese Future Growth of Fuel Cell Industry Depends on Technology Improvements Commercial viability of Fuel Cells Market requires: saturation > Improved reliability > Lower costs Customer acceptance Product introduction Technological development 2000 2005 2010 2020 94 Analyst Conference, September
Slide 95: Celanese is developing the high temperature MEA
Celanese Celanese is developing the high temperature MEA Technical Polymers: > Bipolar plate with flow field MEA: > Membrane > Gas diffusion layer with catalyst Technical Polymers: > End plate Celanese is addressing cost and reliability issues of fuel cell systems through high temperature Membrane E
Slide 96: Celanese Ventures Biotechnology Platform
Celanese Celanese Ventures Biotechnology Platform > Focused on developing and marketing innovative products and biotechnological processes based on protists > Protists are a large group of natural microorganisms which can be sourced from the ocean > Protist based manufacturing processes yield high q
Slide 97: Biotechnology Platform - Focused Product Development
Celanese Celanese Ventures Biotechnology Platform - Focused Product Development > Polyunsaturated fatty acids (PUFA) identified as an initial future commercial product > Commercially viable, low cost manufacturing process developed > Currently seeking approval in the U.S. and Europe for marketing PU
Slide 98: Summary
Celanese Summary > Spearheading product and process development in innovative growth areas like biotechnology and fuel cells > Monitoring and analyzing disruptive technology trends with potential impact on Celanese businesses > Capture value from technologies through spin-outs, licensing or partners