Celanese Corporation · NYSE:CE
Celanese — Non-Deal Roadshow (2002)
21 slides from Celanese's roadshow presentation, 2002
Slide 1: Efficiency and Focus
Efficiency and Focus Perry Premdas Chief Financial Officer
Slide 2: Forward-Looking Statements
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 and the an
Slide 3: Optimizing the Businesses
Optimizing the Businesses Global production/administration downsized* by 15 sites or plants Portfolio optimized and focused € 870 million invested in expanding and optimizing the value chain 2000 > > > 2002 3 Spring Roadshow 2002 * after conclusion of the divestment program
Slide 4: Celanese - Global Leader in Major Regions
Celanese - Global Leader in Major Regions 2001 Sales - €5.1 bn 2001 Sales by Destination = Europe = NAFTA = Asia = ROW > #1 or #2 global supplier in 70 % of sales > Leading technology positions 3% 14% > 30 plants in 11 countries 37% > 11,800 employees > 5 R&D sites 46% > 70 % of assets in NAFTA Glob
Slide 5: Leading Global Positions in Core Products
Leading Global Positions in Core Products Acetyl Products Technical Polymers Performance Products Ticona E Sales: €2,155 m Sales: €773 m Sales: €440 m X Products: Acetic acid, vinyl Products: Polyacetal, P acetate, polyvinyl alcohol polyester, UHMW-PE, liquid crystal polymers Business: Nutrinova foo
Slide 6: Financial Overview
Financial Overview in € millions FY 2001 FY 2000 chg. in % Net sales 5,097 5,207 (2) EBITDA excluding special charges 420 500 (16) EBITDA excluding special charges margin 8.2% 9.6% Special charges, net (530) (29) n.m. Net earnings (loss) (385) 58 n.m. Earnings (loss) per share (EPS), (in €)(1) (7.65
Slide 7: 2001 Non-Cash Consolidated and Statutory Impairment Charges
2001 Non-Cash Consolidated and Statutory Impairment Charges > Consolidated: €262 million non-cash goodwill impairment in Chemical Intermediates segment included in special charges > Statutory: Lower carrying value of North American subsidiary = No unappropriated retained earnings in 2001 Dividends a
Slide 8: Market Trends
Market Trends % change vs previous year quarter 15 10 5 0 CZ Volume CZ Price -5 -10 -15 Q3 1999 Q4 1999 Q1 2000 Q2 2000 Q3 2000 Q4 2000 Q1 2001 Q2 2001 Q3 2001 Q4 2001 8 Declining demand pressures volume and price Spring Roadshow 2002
Slide 9: Mixed Segment Performance in 2001
Mixed Segment Performance in 2001 EBITDA* in € million and % of sales 250 2000 2001 9.5% 9.7% 200 150 15.2% 12.2% 11.9% 100 18.1% 17.0% 4.6% 6.7% 50 2.5% 0 Acetyl Products Chemical Acetate Ticona Performance Intermediates Products Products Intermediates and Ticona earnings hard hit 9 Spring Roadshow
Slide 10: Geared to Recovery
Geared to Recovery % Industry capacity utilization 95 90 85 80 75 70 1996 1997 1998 1999 2000 2001 Acetic Acid Vinyl Acetate Monomer Acrylates 10 Spring Roadshow 2002 Source: Celanese and Industry estimates
Slide 11: Weak Markets: The Ticona Experience
Weak Markets: The Ticona Experience European Production Index compared with Ticona Europe segment sales Index: 1998 = 100 240 220 Ind. Production Index 200 Electrical Engineering Europe* 180 160 Ind. Production Index Telecom/Network 140 Europe** 120 Ticona Electro Mechanical 100 Components* Sales 80
Slide 12: Actions Yielding Results
Actions Yielding Results 2001 “Focus“ and “Forward“ Initiatives > Closure of eight high cost facilities > Reduction of around 1,600 positions (~12%) > €322 million special charges (€124 million non-cash) 2001 Impact > €306 million working capital reduction at year-end > €231 million capital expendit
Slide 13: Strong Cash Generation Net Financial Debt Reduced By 27%
Strong Cash Generation Net Financial Debt Reduced By 27% 1,141 832 Leverage* 2001 (2000): 28.4% (29.0%) 12/31/2000 CapEx Special Dividends Operating Trade Others 12/31/2001 Charges Cash Flow Working Capital Maintain investment grade rating 13 Spring Roadshow 2002 * Total financial debt / total finan
Slide 14: Striving for Operational Excellence
Striving for Operational Excellence > 396 Black and Green > “Forward” Streamlined Six Sigma Belts active at the end Implementation Organization of Q1’02 >3% of employees EHS Excellence > Supply Chain > Maintenance Best > Advanced Process Excellence Practices Control Digitization Standardization Reap
Slide 15: Six Sigma Applied: A Project Example
Six Sigma Applied: A Project Example Solvent Production/ Liquid Phase Oxidation (LPO) Objective: Increase yield in solvent production > Result: = €2.4 million p.a. additional revenue generation in sold-out product = Project implemented in ~8 months = Capital invested: € 42,000 > Lessons: = Tribal kn
Slide 16: Building on Innovation
Building on Innovation > Increase in plant capacities = GUR®: new plant in Bishop, start-up 2002 = Polyacetal: capacity expansion in Kelsterbach to 100 kt/a, end of 2003 = Polyacetal: planned JV for 60 kt/a plant, China, tentatively 2005 > Process improvements = AO Plus technology: higher productiv
Slide 17: Growth and optimization
Growth and optimization > Agreement with Hatco Corporation, Fords, NJ to establish a European joint venture to produce neopolyol esters signed in February 2002 > Letter of intent on the merger of European oxo chemicals business with Degussa AG‘s signed in March 2002 Creating platforms for expansion
Slide 18: Ownership in Performance
Ownership in Performance > Senior management owns a significant interest in shares and rights > Incentive Programs = Current - Share Appreciation Rights1: ? €1 share price change = €4.5 mil in EBITDA variance = Proposal - Stock Options2 ? Conditional capital increase (1.25 mil. shares / 2.2% dilutio
Slide 19: Successful Global Share Program
Successful Global Share Program Shareholder Structure by Region1 20002 20023 > North > Europe (excluding > Europe (excluding America Germany) > North Germany) America 15% 8% 14% 29% 26% 34% > Kuwait 45% 29% > Germany > Germany > Kuwait and others and others Continuous increase in North American shar
Slide 20: Outlook for 2002
Outlook for 2002 > H1 2002 EBITDA* on H2 2001 level > Capital expenditures at 2001 level of about €230 million > Working capital under tight control > Yearend net financial debt at about €1 billion Expect market conditions to remain weak during first six months * excluding special charges 20 Spring
Slide 21: Spring Roadshow 2002
21 Spring Roadshow 2002