Celanese Corporation · NYSE:CE
Celanese — Investor Day (November 2015)
16 slides from Celanese's investor day presentation, Nov 13, 2015
Slide 1: Chris Jensen, Chief Financial Officer - Investor Day
Chris Jensen CHIEF FINANCIAL OFFICER I N V E S T O R D A Y N O V E M B E R 1 3 , 2 0 1 5
Slide 2: Power of Financial Leadership
2I N V E S T O R D A Y 2 0 1 5 Expect to drive double-digit earnings and cash flow growth through 2018 Power of Financial Leadership > Significant and growing free cash flow generation driven by financial performance and decreasing capital expenditure needs > Capital allocation focused on highest-re
Slide 3: Accelerating free cash flow growth
3I N V E S T O R D A Y 2 0 1 5¹EPS CAGR calculated using midpoint of 2015 forecasted EPS range ...through disciplined management of capital spending and working capital Accelerating free cash flow growth 2012 2013 2014 2015F 2012 2013 2014 2015F $4.07 $361 $392 $548 >$600 $4.50 $5.67 $5.90- $6.10 14
Slide 4: Current share price attractive relative to cash generation
4I N V E S T O R D A Y 2 0 1 51Source: Bloomberg and Celanese estimates. 2015 Q3 LTM data used for 2015. 2015 Q2 LTM used for VAL Current share price attractive relative to cash generation Compelling free cash flow yield 2012 2013 2014 2015F 2012 2013 2014 2015F $4.07 $361 $392 $548 >$600 $4.50 $5.6
Slide 5: We are lowering capital spend
5I N V E S T O R D A Y 2 0 1 5¹ Includes contributed cash from JV Partner for Clear Lake methanol project …and it will contribute to higher free cash flow We are lowering capital spend > Significant capital projects not anticipated in the near term: – Completed Clear Lake methanol unit ~$350 million
Slide 6: Sustainable productivity
6I N V E S T O R D A Y 2 0 1 5 Programs permanently remove costs, expect net $50mm to $100mm annually Sustainable productivity 2015 GROSS PRODUCTIVITY Business Enterprise Supply Chain Manufacturing ~$200mm > Raw material flexibility and yield improvement > Energy efficiency and reduction > Asset uti
Slide 7: Allocating capital to yield highest return
7I N V E S T O R D A Y 2 0 1 5 While targeting a dividend payout ratio of 20% Allocating capital to yield highest return HIGHER RETURNS Organic Growth Acquisitions Share Repurchases Repay Debt Keep Excess Cash Current WACC Utilizes existing infrastructure and enhancements thereto Targets return in e
Slide 8: Disciplined spending delivers strong returns
8I N V E S T O R D A Y 2 0 1 5 Organic growth and productivity projects generate our highest returns Disciplined spending delivers strong returns CELANESE ROIC CLEAR LAKE METHANOL UNIT IRR OTHER PROJECTS IRR 2012 2013 2014 2015F 2012 2013 2014 2015F $4.07 $361 $392 $548 >$600 $4.50 $5.67 $5.90- $6.1
Slide 9: Generating high return on invested capital
9I N V E S T O R D A Y 2 0 1 5Source: Capital IQ and Celanese estimates …due to disciplined capital allocation Generating high return on invested capital 5-YEAR AVERAGE ROIC (2010-2014) 2012 2013 2014 2015F 2012 2013 2014 2015F $4.07 $361 $392 $548 >$600 $4.50 $5.67 $5.90- $6.10 14% CAGR1 ~20% CAGR
Slide 10: Returning more cash to shareholders
10I N V E S T O R D A Y 2 0 1 5 Returning more cash to shareholders DIVIDEND PAYOUT RATIO AND TOTAL DIVIDEND IN $mm REPURCHASE YIELD AND SHARE REPURCHASE IN $mm 2012 2013 2014 2015F 2012 2013 2014 2015F $4.07 $361 $392 $548 >$600 $4.50 $5.67 $5.90- $6.10 14% CAGR1 ~20% CAGR PAGE 3 PAGE 4 3.3% Peer M
Slide 11: Shareholder yield leading peers
11I N V E S T O R D A Y 2 0 1 5Source: Bloomberg and Celanese estimates. 2015 Q2 LTM data used for VAL Shareholder yield leading peers 2015 Q3 LTM SHAREHOLDER YIELD PAGE 11 1.8% 1.4% 1.3% 5.1% 5.1% 2.9% 2.8% 0.0% 2.1% 2.3% 0.0% 0.9% 1.9% 1.2% 0.7% 0.7% 2.3% 1.3% 1.2% 2.2% 1.1% 1.5% 0.4% 1.2% 0.1% 0.
Slide 12: Net leverage and capital deployment
12I N V E S T O R D A Y 2 0 1 5 PAGE 11 1.8% 1.4% 1.3% 5.1% 5.1% 2.9% 2.8% 0.0% 2.1% 2.3% 0.0% 0.9% 1.9% 1.2% 0.7% 0.7% 2.3% 1.3% 1.2% 2.2% 1.1% 1.5% 0.4% 1.2% 0.1% 0.1% 1.7% 2.4%2.5% 5.2% CE Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 CE 2012 Share
Slide 13: Strong financial position and debt maturities
13I N V E S T O R D A Y 2 0 1 5 PAGE 11 1.8% 1.4% 1.3% 5.1% 5.1% 2.9% 2.8% 0.0% 2.1% 2.3% 0.0% 0.9% 1.9% 1.2% 0.7% 0.7% 2.3% 1.3% 1.2% 2.2% 1.1% 1.5% 0.4% 1.2% 0.1% 0.1% 1.7% 2.4%2.5% 5.2% CE Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 CE 2012 Share
Slide 14: At a compelling valuation
14I N V E S T O R D A Y 2 0 1 5 …at a compelling valuation 1EPS CAGR calculated using midpoint of 2015 forecasted range; 2Source: Bloomberg as of November 9, 2015 History of strong financial performance… ADJUSTED EPS 3 YEAR AVERAGE FCF YIELD 5 YEAR AVERAGE ROIC PAGE 11 1.8% 1.4% 1.3% 5.1% 5.1% 2.9%
Slide 15: Converting earnings growth into cash flow growth and shareholder returns
15I N V E S T O R D A Y 2 0 1 5 Converting earnings growth into cash flow growth and shareholder returns Power of Financial Leadership Complementary Cores Distinct Value Creation Models Advantaged Positions Sustainable Productivity High Capital Returns ADJUSTED EARNINGS PER SHARE FREE CASH FLOW (mm)
Slide 16: Glossary
16I N V E S T O R D A Y 2 0 1 5 Glossary For Celanese Non-GAAP measures, please refer to the Non-US GAAP Financial Measures and Supplemental Information documents available under Investor Relations/Financial Information/Non-GAAP Financial Measures on our website, www.celanese.com. > Average Market C