Celanese Corporation · NYSE:CE
Celanese — Investor Day (March 2021)
12 slides from Celanese's investor day presentation, Mar 25, 2021
Slide 1: Acetate Tow
Lori Ryerkerk Acetate Tow Hho LET
Slide 2: Celanese Acetate Enterprise
2 Celanese Acetate Enterprise Sustainably Forested Trees Renewable Non-food sources High Purity Cellulose + Acetic Acid Sustainable raw materials Acetate Flake Bio-based Sustainable Environmentally friendly Vinegar and Glucose Consumed by microorganisms Acetate Derivatives Acetate Tow Biodegradable
Slide 3: A central link in our businesses
A central link in our businesses 3 Acetyl Chain Acetate Tow Engineered Materials Acetic Acid Acetate Flake Consumer of upstream products Supplier of sustainable materials Acetate Tow
Slide 4: Acetate Tow financial outlook
Acetate Tow financial outlook STABLE INDUSTRY DYNAMICS ADJUSTED EBIT MARGIN ~45% 2023 OPERATING EBITDA MARGIN ~50% 2023 DIVIDENDS FROM AFFILIATES ~55% $249 ~$245 ~$245 2020 2021F Tow Demand Decline Affiliate Dividends Productivity 2023F 4 Adjusted EBIT (in millions) of Total Adjusted EBIT 2023 1 2 3
Slide 5: Slide 5
Slide 6: Slide 6
Slide 7: Acetate Tow Appendix
Acetate Tow Appendix
Slide 8: Gradual, secular decline in tow demand
Gradual, secular decline in tow demand Limited impact on tow demand from COVID-19 pandemic Stable inventory and regional trade dynamics G lo ba l C ig ar et te s (t ri ll io ns ) China Rest of World 2020 – 2023E CAGR decline of 1% 2013 2014 2015 2016 2023F2022F2021F2020201920182017 Predictable and s
Slide 9: Stabilizing industry dynamics: global tow utilization
Estimated Global Tow Capacity (~800 kt) To w V ol um e (k t) 2013 2014 2015 2016 2023F2022F2021F2020201920182017 97% 91% 85% 87% 88% 89% 92% 92% Excess Capacity Utilization Utilization could improve further as producers continue to address cost positions Celanese Eastman Daicel Blackstone Jinan/Hube
Slide 10: Growing China dividends
Flake expansion and potential future incremental expansions Cost reductions in raw materials such as pulp and acid Growing China dividends JV dividends overview Efficiency improvements at our China JVs Increased tow sales in China Development of new flake end uses Share of China capacity Other 2013
Slide 11: Maintaining high level of productivity
Maintaining high level of productivity Proven productivity track record that more than offset inflation in last five years Productivity Initiatives 2015 Pulp sourcing optionality 2023F2022F2021F 7% 6% 5% 3% 4% 8% 2016 2019-2020 2020 2021-2023 • Energy reduction • Manufacturing improvements • Raw mat
Slide 12: Driving value by capturing market opportunities
Sustainability Opportunities Regional Growth Opportunities Driving value by capturing market opportunities Product Growth Opportunities OPPORTUNITY: Growth in alternatives to traditional cigarettes CE RESPONSE: Capturing market share in Heated-Tobacco Products (HTP) OPPORTUNITY: Shift in regional de