Celanese Corporation · NYSE:CE
Celanese — Investor Day (May 2011)
192 slides from Celanese's investor day presentation, May 10, 2011
Slide 1: Celanese Corporation 2011 Investor Day
Celanese Corporation 2011 Investor Day May 10, 2011
Slide 2: Agenda
Agenda 8:30 am Introduction/Agenda Mark Oberle, Senior Vice President, Corporate Affairs 8:35 am CEO David Weidman, Chairman & Chief Executive Officer 9:00 am COO Doug Madden, Chief Operating Officer 9:30 am Advanced Engineered Materials Michael Stubblefield, General Manager, Ticona 9:45 am Consumer
Slide 3: Forward-Looking Statements; Reconciliation and Use of Non-US GAAP Measures
Forward-Looking Statements Reconciliation and Use of Non-US GAAP Measures to US GAAP
Slide 4: Forward-Looking Statements
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 in
Slide 5: Non-US GAAP Financial Information
Non-US GAAP Financial Information Use and Reconciliation of Non-US GAAP Financial Information This presentation includes references to the following performance measures: operating EBITDA and operating EBITDA margin, business operating EBITDA and business operating EBITDA margin, affiliate EBITDA an
Slide 6: Investor Day Introduction
Investor Day Introduction Dave Weidman Chairman and Chief Executive Officer
Slide 7: Celanese technology-focused portfolio
Celanese technology-focused portfolio building on a track record of execution and value creation Celanese* ($ in millions) 2010 Revenue: $5,918 2010 Operating EBITDA: $1,122 Revenue: $1,089 Operating EBITDA: $371 Revenue: $1,109 Operating EBITDA: $363 Revenue: $1,036 Operating EBITDA: $111 Revenue:
Slide 8: Celanese and Strategic Affiliates
Celanese and Strategic Affiliates ($ in millions) 2010 Revenue: $7,129 2010 Operating EBITDA: $1,228 Revenue: $1,356 Operating EBITDA: $371 Revenue: $2,053 Operating EBITDA: $469 includes Proportional Affiliate EBITDA Revenue: $1,036 Operating EBITDA: $111 Revenue: $2,682 Operating EBITDA: $411 Cons
Slide 9: Path to Premier
Path to Premier A track record of delivery for shareholders * Celanese management estimates, based on unaudited similar information of predecessor company Source: Calculated based on Celanese's December, 31, 2010 results $2.0B $9.0B Enterprise Value Significant value creation by execution of growth
Slide 10: History of value creation for shareholders
1st Quartile Since IPO (January 21, 2005) 5 years 4 years 3 years 2 years 1 year 2005 2006 2007 2008 2009 2010 2011 YTD 1st Quartile 1st Quartile 3rd Quartile 1st Quartile 1st Quartile 2nd Quartile Celanese has delivered top quartile performance since the IPO History of value creation for shareholde
Slide 11: 2009: Established long-term earnings objectives
2009 2013E $857 $1,600-$1,800 2009: Established long-term earnings objectives Productivity Innovation Geographic Growth Portfolio Enhancements Operating EBITDA ($ in millions)
Slide 12: Strategic pillars to create sustainable value
10-15% sustained earnings growth Relatively higher margins Modest earnings volatility High capital return Strategic Results Geographic Growth Innovation Productivity Portfolio Enhancements Strategic Levers 2010: Introduced Celanese's strategic pillars to create sustainable value Clear, sustainable c
Slide 13: Technology and Specialty Materials criteria
Modest earnings volatility Relatively higher margins 10-15% sustained earnings growth High capital return 2010: Established Technology and Specialty Materials criteria Operating EBITDA ($ in millions) 2009 2013E $857 $1,600-$1,800 2010 $1,122
Slide 14: 2011: Defined additional growth platforms
Modest earnings volatility Relatively higher margins High capital return 2011: Defined additional growth platforms based on breakthrough technology 2009 2013E $857 >$1,700 2010 $1,122 2011E Operating EBITDA ($ in millions) + ~$200 Increasing 2013 earnings objective 10-15% sustained earnings growth
Slide 15: Adjusted earnings per share: growth platforms
Fuel Ethanol Industrial Ethanol Modest earnings volatility Relatively higher margins 10-15% sustained earnings growth High capital return 2011: Defined additional growth platforms based on breakthrough technology 2009 2013E 2010 2011E $1.75 $3.37 >$6.00 Adjusted Earnings Per Share Increasing 2013 ea
Slide 16: Value equation for Celanese
Value equation for Celanese Modest earnings volatility Relatively higher margins 10-15% sustained earnings growth High capital return Translating higher-than-GDP top-line growth to sustained earnings growth Productivity Innovation Geographic Growth Portfolio Enhancements Earnings Growth of Current B
Slide 17: Sustained top line growth greater than GDP
Sustained top line growth greater than GDP Celanese Position (2010) Share of Global GDP (2010) Expected GDP Growth (2011-2016) Global footprint accelerates revenue growth 27% 34% 39% 33% 32% 35% 2-3% 2-3% 5-6% Celanese Global Presence Flexible access to feedstocks Strategic affiliates enhance emergi
Slide 18: Gross productivity
Gross Productivity* Enhanced operating leverage through continuous productivity Driving sustained earnings growth Track record of performance $ in millions * Productivity includes fixed, variable, and energy costs before inflation, Celanese internal management analysis $200 million average
Slide 19: Ethanol breakthrough technology creates growth opportunities
Discussions progressing Sizable opportunity Breakthrough process technology creates significant growth opportunities Synergistic with Acetyls China focus Additional earnings power above traditional Celanese businesses Fuel Ethanol Industrial Ethanol Celanese TCX(tm) Ethanol Technology Modify and enh
Slide 20: Ethanol breakthrough technology fuels incremental growth
Paradigm shifts with proprietary and cost advantaged ethanol technology Significant Revenue Opportunity Sustained Earnings Growth High Operating Margins Attractive Capital Returns Ethanol breakthrough technology fuels incremental growth Prevailing Ethanol Technology Celanese Ethanol Technology Techn
Slide 21: Celanese TCX ethanol process
Celanese TCX(tm) ethanol process TCX(tm) Ethanol Technology Breakthrough Elements Catalyst systems Process controls Conditions of operation Materials of construction Acetyl technologies Ethanol technologies Ethanol Acetyl products Ethylene Natural gas Coal Pet coke Biomass (future) Waste (future) Sy
Slide 22: Additional growth platform: Industrial ethanol
$1.75 Modest earnings volatility Relatively higher margins 10-15% sustained earnings growth High capital return Industrial Ethanol Additional growth platform: Industrial ethanol 2009 2013E 2010 $3.37 2011E Adjusted Earnings Per Share Based on breakthrough technology $5 billion addressable applicatio
Slide 23: Industrial ethanol opportunity centered in China
Ethanol Demand 2010-2016 China industrial ethanol growth = 8-10% Attractive industrial ethanol opportunity centered in China Technology increasing access to >$60 billion addressable space* Fuel ~60-70 ~5-6 Industrial Source: Celanese internal management estimates, SRI Consulting, GAIN report, Hart E
Slide 24: Additional growth platform: Fuel ethanol
Modest earnings volatility Relatively higher margins 10-15% sustained earnings growth High capital return Industrial Ethanol Additional growth platform: Fuel ethanol 2009 2013E $1.75 2010 $3.37 2011E Adjusted Earnings Per Share Disruptive technology for fuel enhancement Significant growth opportunit
Slide 25: TCX technology accesses global fuel opportunity
TCX(tm) technology accesses large and growing global fuel opportunity Global Fuel Ethanol Demand 2020 opportunity: 50 to 60 TCX(tm) facilities to meet estimated growth ~5-6 ROW Growth US/Brazil/EU Growth Asia Growth 2010 Fuel Ethanol Demand ~60-70 2010 Fuel Ethanol Demand ~60-70 2020E Global Fuel Et
Slide 26: Path to Premier: earnings growth drives enterprise value
Path to Premier Earnings growth drives enterprise value $2.0B $9.0B Execution of growth levers will drive further earnings improvements ~$0.4B ~$1.1B >$1.7B Productivity Innovation Geographic Growth Portfolio Enhancements Celanese Operating EBITDA Enterprise Value * Celanese internal management esti
Slide 27: Celanese value proposition
Celanese value proposition: an attractive investment for shareholders 10-15% Earnings Growth Industrial Ethanol Advanced Fuel Technologies Potential of Significant Opportunity in Fuels Additional Value of Industrial Ethanol Accelerating Value of Current Businesses Growth greater than global GDP Stro
Slide 28: Celanese Growth Levers
Celanese Growth Levers Doug Madden Chief Operating Officer
Slide 29: Celanese technology-focused portfolio
Celanese technology-focused portfolio - building on a track record of execution and value creation Celanese ($ in millions) 2010 Revenue: $5,918 2010 Operating EBITDA: $1,122 Revenue: $1,089 Operating EBITDA: $371 Revenue: $1,109 Operating EBITDA: $363 Revenue: $1,036 Operating EBITDA: $111 Revenue:
Slide 30: Recent highlights and 2011 outlook
Recent highlights and 2011 outlook Advanced Asia footprint Acquired LFT/LCP business Sustained translation in OEM Advanced Engineered Materials Continued earnings growth Started China affiliate expansion Set plan for footprint realignment Consumer Specialties Expanded Nanjing VAE capacity Launched V
Slide 31: 2013 outlook: Growth levers drive financial performance
Operating EBITDA 2013 outlook: Growth levers drive strong financial performance $857 million Increased 2013 earnings outlook; Substantial earnings potential beyond 2013 >$1,700 million 90% Celanese Controllable Earnings Improvement $1,122 million +$200 million Areas of Potential Upside: Housing reco
Slide 32: Updated view of segment outlook
A global leader Advantaged technology Superior cost position Upstream integration Emerging economy opportunities Growth through innovation Cash generation with earnings growth Industry-leading partnership Growth opportunities in Asia Accelerated revenue growth Strong earnings conversion Technology-r
Slide 33: Celanese value growth levers
Celanese value growth levers Geographic Growth Portfolio Enhancements Productivity Innovation Sustainability
Slide 34: Geographic growth lever
Value growth levers drive increased earnings Geographic Growth Portfolio Enhancements Productivity Innovation Sustainability Leadership in emerging Asia region Participation in above average GDP growth segments in developed economies
Slide 35: Growth opportunities in emerging regions
Substantial growth opportunities in emerging regions Middle class growth weighted towards Asia Sources: OECD, Standard Chartered Research North America Central and South America Sub Saharan Africa Middle East and North Africa Europe 100mn 500mn 1bn Global Middle Class in 2009 and Prediction for 2030
Slide 36: History of growth and expansion in Nanjing
Acetic Acid 600kt Acetic Acid to 1,200kt Acetic Anhydride 100kt Vinyl Acetate Monomer 300kt Emulsions 60kt Emulsions to 110kt Celstran(r) 4kt Celstran(r) to 9kt GUR(r) 14kt Compounding 24kt A history of growth, continued investment and expansion in Nanjing 2007 2008 2009 2010 2011+ Nanjing, China
Slide 37: Recent investments to support growth
Recent investments to support growth Advanced Engineered Materials POM expansion Consumer Specialties Nantong tow / flake expansion Industrial Specialties 15% EVA capacity increase Acetyl Intermediates 2x Nanjing acetic acid capacity Industrial Specialties 2x Nanjing VAE capacity Advanced Engineered
Slide 38: Focus on high growth in Asia
Our focus continues to be high growth in Asia 1 Includes proportional net sales from equity and cost investment affiliates 2 Celanese internal management estimates, based on unaudited similar information of predecessor company Americas 27% Europe 34% Asia 39 % Asia 10-15% Europe 35-40% Americas 45-5
Slide 39: Innovation lever
Value growth levers drive increased earnings Geographic Growth Portfolio Enhancements Productivity Sustainability Access to new application space supports accelerated growth Value-added products drive margin expansion Efficient manufacturing technologies control costs Innovation
Slide 40: Diversified end-uses provide foundation for growth
Our diversified end-uses provide a foundation for future growth and platforms for innovation Other 7% Construction 4% Paints & Coatings 11% Automotive 15% Consumer & Medical Applications 11% Filter Media 18% Consumer & Industrial Adhesives 9% Textiles 5% Food & Beverage 4% Chemical Additives 3% Pape
Slide 41: Creating value with innovation
Customer-driven solutions in new or existing end-uses Creating sustainable advantages Capturing value in use with customers Investments to support advantaged opportunities Generating value through innovation New Applications & Platforms Enabling Technologies Business Models Alternative Raw Materials
Slide 42: Innovation: new applications and platforms
Enabling Technologies Business Models Alternative Raw Materials Generating value through innovation Creating Value with Innovation Unlocking higher margins with value-driven solutions Opening access to new customers and geographies Building sustainable advantages with patented, unique technologies C
Slide 43: Innovation: enabling technologies
New Applications & Platforms Business Models Alternative Raw Materials Generating value through innovation Creating Value with Innovation Unlocking higher margins with value-driven solutions Opening access to new customers and geographies Building sustainable advantages with patented, unique technol
Slide 44: Innovation: business models
New Applications & Platforms Enabling Technologies Alternative Raw Materials Creating Value with Innovation Unlocking higher margins with value-driven solutions Opening access to new customers and geographies Building sustainable advantages with patented, unique technologies Generating value through
Slide 45: Innovation: alternative raw materials
Creating sustainable advantages New Applications & Platforms Enabling Technologies Business Models Generating value through innovation Creating Value with Innovation Unlocking higher margins with value-driven solutions Opening access to new customers and geographies Building sustainable advantages w
Slide 46: AOPlus3: next generation acetic acid technology
AOPlus(r)3: Next generation of acetic acid technology Source: Various press releases, 2007 China Acetic Acid Conference, and Celanese internal management estimates Continued investment to advance technology leadership Capital Advantage Relative Capital Intensity Raw Material & Conversion Cost Advant
Slide 47: Celanese TCX ethanol process
Celanese TCX(tm) ethanol process Technology innovation increasing addressable space TCX(tm) Ethanol Technology Breakthrough Elements Catalyst systems Process controls Conditions of operation Materials of construction Acetyl technologies Ethanol technologies Ethanol Acetyl products Ethylene Natural g
Slide 48: Accelerating the contribution of innovation
Accelerating the contribution of innovation GUR(r) in Medical Devices 2013 to 2014 2015+ Today AEM Metal Replacement EcoVAE(tm) Low VOC Paint Industrial Ethanol Advanced Emulsions Production Natural Sweeteners Alternative Cellulose Sources New Acetyl Derivatives Emulsions in Apparel Next Generation
Slide 49: Productivity lever
Value growth levers drive increased earnings Geographic Growth Portfolio Enhancements Sustainability Deliver cost improvements 2 times fixed cost inflation Strengthen operating leverage advantage Innovation Productivity
Slide 50: Productivity framework supports strategic investments
Productivity framework supports strategic investments Sustainable performance driven by process and culture Gap (versus) Theoretical Limits Industry Benchmarks Management & Share- holder Expectations Enhance Capabilities Stretch Goals Operating EBITDA Growth & Productivity Innovation Sustainability
Slide 51: Productivity performance
Productivity performance The way we work at Celanese Productivity* Track record of performance Productivity DNA Integral to our commitment to Operational Excellence Culture - constantly developing ways to improve ($ in millions) * Productivity includes fixed, variable, and energy costs before inflat
Slide 52: Productivity forever
Productivity forever Consistently delivering productivity over fixed cost inflation Spending1 1 Assumes stable currency and raw material pricing 2 Productivity includes fixed, variable, and energy costs; Celanese internal management analysis Productivity2 Fixed Cost Inflation 2011E 2012E 2013E There
Slide 53: Culture of productivity drives improvement
Culture of productivity drives improvement across Celanese Consolidation of NA and EU financial shared services Majority of productivity generated from hundreds of projects Services Standardization Additional 2X to 3X savings potential when deployed ~$10 million savings from these three examples 201
Slide 54: Portfolio enhancements lever
Value growth levers drive increased earnings Geographic Growth Sustainability Synergistic acquisitions Emerging technologies Portfolio extensions to reduce earnings volatility Innovation Productivity Portfolio Enhancements
Slide 55: Portfolio enhancements drive improved performance
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 As Reported 0.11 0.1 0.11 0.11 0.16 0.168 0.192 0.199 0.17 0.169 0.19 Pro Forma for Current Portfolio 0.16 0.15 0.15 0.17 0.2 0.176 0.198 0.204 0.173 0.169 0.19 Operating EBITDA Margin* Portfolio enhancements drive improved performance throughou
Slide 56: Portfolio enhancements build on advantaged materials capabilities
Portfolio enhancements build on our advantaged materials capabilities ~300% revenue growth ~$200 Built on existing LCP franchise Improved access to critical Asia region Acquired Zenite(r) liquid crystal polymer (LCP) and Thermx(r) high performance polyester resin (PCT) $60 million acquisition closed
Slide 57: Sustainability lever
Value growth levers drive increased earnings Sustainability Geographic Growth Innovation Productivity Portfolio Enhancements Sustainability Commitment to Responsible Care(r) Sustainable innovation and operating discipline Social and environmental considerations Responsible Care(r) is a registered se
Slide 58: Sustainability is good business
>$200 Million of Energy Productivity Sustainability is good business Creating value for all stakeholders OSHA Incident Rate (incidents/200,000 man hours) Among the Safest Work Places in Chemical Industry Energy (Million BTU/1,000 lb) >4 Million Tons per Year in GHG Reduction Greenhouse Gases (ton/to
Slide 59: Sustainability is good business: value through innovation
Sustainability is good business EcoVAE(r) low VOC paint and coating emulsions Metal replacement in auto increases fuel efficiency, decreases emissions EVA Performance Polymers - Higher EVA content for solar cell encapsulation Value Through Product Innovation Advantage Celanese Advantage Celanese Cel
Slide 60: 2013 outlook: Growth levers drive financial performance
Operating EBITDA 2013 outlook: Growth levers drive strong financial performance $857 million Increased 2013 earnings outlook; Substantial earnings potential beyond 2013 >$1,700 million 90% Celanese Controllable Earnings Improvement $1,122 million +$200 million
Slide 61: Advanced Engineered Materials
Advanced Engineered Materials Michael Stubblefield General Manager
Slide 62: AEM: Record performance in 2010
Advanced Engineered Materials (AEM): Record performance in 2010 Advanced Engineered Materials 2010 Revenue: $1,109 2010 Operating EBITDA: $363 Ticona Strong growth fueled by innovation and application development Differentiated polymer processing and material capability Leading technical and applica
Slide 63: AEM: Strategic affiliates enhance emerging economies opportunity
AEM: Strategic affiliates enhance emerging economies opportunity Advanced Engineered Materials 2010 Revenue: $2,053 2010 Operating EBITDA: $469 Fortron Industries Ownership 50% Korea Engineering Plastics (KEP) Ownership 50% Polyplastics Ownership 45% Ticona Ibn Sina1 Ownership 25% Strong growth fuel
Slide 64: End-use diversity supports growth trends
End-Use Diversity Supports Growth Trends Global Presence with Key Region Access Medical 10% Alternate Fabrication 7% Industrial 16% Consumer & Appliance 12% Electrical & Electronics 7% Transportation 46% 2010 Revenue by End-Use AEM Locations Global brand experience AEM Strategic Affiliates Revenue e
Slide 65: Generating 2-3x GDP growth: proven business model
Significant Sales Growth Strong Specification Position Variable Margin Stability Generating 2-3x GDP growth: Proven business model A leading global solutions provider of high-performance engineered polymers Variable Margin % Average Variable Margins 55 - 65% Relative % specified ~70% of Ticona busin
Slide 66: Integrated capabilities drive sustainable success
Integrated Capabilities Drive Sustainable Success Engineered Polymers Industry End-use Customers OEMs Raw Material Supplier Ticona Solutions - processing expertise and material performance Material and Performance Specifications Ticona Converter Manufacturer Generating 2-3x GDP growth: Enabling oppo
Slide 67: Integrated capability sustaining growth model
Generating 2-3x GDP growth: Integrated capability sustaining growth model Accelerating growth by providing differentiated solutions for customers A Leader in Fuel System Applications A Leader in Medical Systems Polymer Science Part Processing Part Design and Engineering Value Chain
Slide 68: Strategic affiliates extend specialty materials franchise
Generating 2-3x GDP growth: Strategic affiliates extend specialty materials franchise Ticona and strategic affiliates share similar growth model Demonstrated capability of POM facility when added to Ibn Sina
Slide 69: On track for 2013 commitment
Operating EBITDA On track for 2013 commitment Accelerated revenue growth with strong earnings conversion Translation excellence building upon know-how Advance Asia footprint with leading technology Innovation key enabler to profitable growth $363 million $550-600 million
Slide 70: Sustainable earnings growth levers
Translation Innovation Asia On track for 2013 commitment: Sustainable earnings growth levers Specification and pipeline development Enhance capabilities across value chain to drive accelerated innovation pursuits Accelerate growth with local supply and technical expertise Translate global brand expe
Slide 71: Advancing Asia footprint with leading technology
CAGR ~25% Ticona, a leader building upon... Ticona, a leader building upon... Premium Products Delivered locally Specification Capabilities Delivered regionally Application Expertise Delivered globally On track for 2013 commitment: Advancing Asia footprint with leading technology Building upon techn
Slide 72: Innovation accelerates top-line growth
On track for 2013 commitment: Innovation accelerates top-line growth Existing Specified Business Translating Products into New Applications Breakthrough Polymer/ Processing Modifications Application Development New New Polymer Development Technology expands opportunity for growth Innovation-Focused
Slide 73: Platforms for innovation
Composites - LFT LED Reflectors - PCT Low Emission - POM On track for 2013 commitment: Platforms for innovation Lighting Automotive Handheld devices Sign displays Evolution of Low Emission Grades Bezels Door handles Fasteners Automotive Emission Levels Global LED Demand >20% CAGR Commercialization T
Slide 74: Growth programs increase earnings power
On track for 2013 commitment: Growth programs increase earnings power ? On-track + Ahead of schedule ~$250+ + ~$85+ ? ~$250+ + ~$75+ ? ~$50+ + Medical Applications GUR(r) for Membranes Appearance Portfolio - MetaLX Metallic color matching for applications in Automotive and Consumer Appliances Batter
Slide 75: Strong record of translation growth
On track for 2013 commitment: Strong record of translation growth Source: Celanese internal management estimates .... Into Emerging Regions Interior Trim & Bezels Door/Lock/ Window Front End Modules Advanced Fuel Delivery Consoles & Fasteners Bumper Brackets Steering Wheel Interior Trim & Bezels Doo
Slide 76: On track for 2013 commitment
Operating EBITDA $363 million On track for 2013 commitment Accelerated revenue growth with strong earnings conversion Translation excellence building upon know-how Advance Asia footprint with leading technology Innovation key enabler to profitable growth $550-600 million
Slide 77: Investments support continued growth
Oberhausen, Germany Kelsterbach/IPH, Germany Suzano, Brazil Wilmington, NC (Fortron Industries) Shelby, NC Winona, MN Florence, KY Bishop, TX Nanjing, China Sustaining growth beyond 2013: Investments support continued growth Kaiserslautern, Germany Europe Expansions Frankfurt - POM Kaiserslautern -
Slide 78: Improved living standards create opportunity
Global Water Filtration Medical Applications Sustaining growth beyond 2013: Improved living standards create opportunity Source: Celanese internal management estimates and World Health Organization Underlying Health Trends Underlying Health Trends Obesity GDP+ Respiratory Illnesses GDP++ Orthopedic
Slide 79: Middle-class consumer accelerates growth
Trends of Emerging Regions Translation Opportunities Sustaining growth beyond 2013: Middle-class consumer accelerates growth Urbanization Infrastructure investments Accelerated adoption of Western standards Increasing consumer demand across end- use applications Greater than GDP growth Middle Class
Slide 80: Energy trends enable platform for growth
Solar Power Fuel Efficiency Through Light-weighting Hybrid Electric/ Flex Fuel Vehicles Continued growth through technology driven solutions Sustaining growth beyond 2013: Energy trends enable platform for growth Increasing standards Lightweight construction: 500 lbs out = 10 mpg Weight savings: 10-
Slide 81: AEM: Significant earnings growth in specialty materials
AEM: Significant earnings growth in specialty materials franchise Confident in $550-600 million mid-term operating EBITDA; Significant growth opportunities beyond 2013 Business model supports top-line growth of 2 - 3X GDP On-track execution of 2013 commitment High-performance, technology-focused por
Slide 82: Consumer Specialties
Consumer Specialties Todd Elliott General Manager, Celanese Acetate
Slide 83: Consumer Specialties: Record earnings performance in 2010
2010 Revenue2: $1,089 2010 Operating EBITDA: $371 Industrial Specialties Acetyl Intermediates Advanced Engineered Materials Consumer Specialties Nutrinova A leading acetate position in China; highest growth region for end-use products Strong global presence in food ingredients Earnings growth driven
Slide 84: Consumer Specialties: Record earnings performance in 2010
Industrial Specialties Acetyl Intermediates Consumer Specialties Nutrinova A leading acetate position in China; highest growth region for end-use products Strong global presence in food ingredients Earnings growth driven by manufacturing productivity and geographic expansions, not GDP dependent Cons
Slide 85: Successful execution of current strategy
2004-2010 Strategic Objectives Achieved Consumer Specialties Earnings Consumer Specialties: Successful execution of current strategy Growth Successful growth through China ventures Affiliates dividend has grown from $37 million to $71 million over last 4 years Productivity Geographic footprint optim
Slide 86: Provides stable earnings growth and cash generation
Operating EBITDA Business Operating EBITDA Margin Consumer Specialties: Provides stable earnings growth and cash generation Business EBITDA Margin Operating EBITDA Margin 2000 107.8 2001 148.4 2002 140.8 2003 121.7 2004 145.4 2005 160 2006 0.2363 0.2554 2007 0.2133 0.2412 2008 0.2139 0.2537 2009 0.2
Slide 87: Consumer Specialties: Sustained earnings growth
Consumer Specialties: Sustained earnings growth Operating EBITDA $400+ million $371 million Advanced Asia footprint / China affiliate expansion in Nantong Geographic footprint optionality
Slide 88: Acetate tow industry profile
Acetate Tow Competition - 2010 Acetate Tow Global Demand - 2010 Acetate tow industry profile 2010 global demand grew by ~5% to ~755kt Low single-digit global growth projected Asia is largest global consumer and fastest growing region Eastman Celanese Daicel Rhodia Source: Celanese internal managemen
Slide 89: Tow demand growth
Tow Demand Growth Growth Trends in Asia Growing middle class Replacement of polypropylene with Acetate tow Increase in filter length Continued shift towards machine made cigarettes Introduction of new brands and formats (super-slims) Expect 2-3% growth through 2014 Celanese maintains a leadership po
Slide 90: Strong partnership for future growth
Strong Partnership for Future Growth China position continues to strengthen portfolio 25+ year partnership in fastest growing region April 2010 - NDRC approved memorandum of understanding for Nantong expansion Construction underway Start-up expected in late 2012 Zhuhai Cellulose Fibers Co., Ltd. Kun
Slide 91: Value of acetate affiliates
Value of Acetate affiliates Acetate affiliates are a strong fit for Celanese Shared Characteristics with Celanese Celanese Nantong Kunming Zhuhai Flake Production Tow Production Technology Center Product Development Common Technology Raw Material Coordination
Slide 92: Geographic footprint enables global reach
Geographic footprint enables global reach across all regions Tow Production Flake Production Nantong, China (Expansion underway) Lanaken, Belgium Narrows, Virginia Ocotlan, Mexico Kunming, China Zhuhai, China Affiliates Technology Center Film Production Flexibility meeting customer needs around the
Slide 93: Consumer Specialties: Sustained earnings growth
Consumer Specialties: Sustained earnings growth Operating EBITDA Advanced Asia footprint / China affiliate expansion in Nantong Geographic footprint optionality $400+ million $371 million
Slide 94: Consumer Specialties benefiting from global trends
Consumer Specialties benefiting from global trends Health and Environment Acetate Filtration solutions Clarifoil(r) 'environment friendly' films Nutrinova sugar substitutes Emerging Economies China fastest growing region for Acetate tow Clarifoil(r) in Asia Strategic affiliate capacity expansion Wel
Slide 95: Diversification through innovation
Current Core versus New Approach Adjacent Areas for Diversification Consumer Specialties: Diversification through Innovation Current Core New Business New Channels New Products New Customers New Value Chain New Regions Historic product focus: Acetate, Nutrinova Expanded product focus: Acetate tow, A
Slide 96: Nutrinova targeting high value opportunities
Oral Hygiene Nutrinova targeting high value opportunities Pharmaceuticals Carbonated Beverages New Beverage Categories Dairy and Cereals Sunett(r)'s unrivaled quality meets strict pharmaceutical requirements A highly developed Sunett(r) for high value offerings Nutrinova's core product application T
Slide 97: Clarifoil's unique properties drive demand growth
Clarifoil's unique properties drive demand growth Insulation / Radiant barriers Confectionary / Luxury goods packaging Superior clarity Vapor proof/ anti-fog Stretching and thermoforming capability Metallized capability Adjustable moisture permeability Offers sensory enhancement Sustainably- sourced
Slide 98: Consumer Specialties: Sustained improvements
Global footprint optionality Broadening energy / raw material sources Consumer Specialties: Sustained improvements Significant value creation Megatrends support global growth strategy Diversification in Consumer Specialties through innovation Earnings Growth Growth opportunities in Asia and other em
Slide 99: Industrial Specialties
Mark Murray General Manager, EVA Performance Polymers Industrial Specialties
Slide 100: Industrial Specialties: Record earnings performance in 2010
2010 Revenue: $1,036 2010 Operating EBITDA: $111 Consumer Specialties Industrial Specialties: Record earnings performance in 2010 Innovation and geographic expansion driving business growth opportunities A leading vinyl emulsions position in emerging economies Growth in higher value EVA Performance
Slide 101: Industrial Specialties supplies diverse applications
Industrial Specialties supplies to a diverse set of applications Industrial Specialties consumes 20% of Celanese VAM Emulsions EVA Performanc e Polymers VAM Paints & Coatings 29% Construction 9% Other 14% Textile & Paper 13% Specialty EVA 4% Specialty Films 5% Adhesives 26% Source: Celanese internal
Slide 102: Feedstock trends favoring Industrial Specialties
Feedstock trends favoring Industrial Specialties earnings growth Source: CMAI April 2011; Celanese internal management estimates Normalized raw material cost Heavy Feedstocks Light Feedstocks Sales Growth Margin Expansion Industrial Specialties products based on light feedstocks Celanese innovation
Slide 103: Technology and innovation drive balanced earnings growth
Operating EBITDA $200+ million $111 million Innovation of new applications and technologies Expansions support customer growth in emerging regions More than offset inflation through productivity Industrial Specialties: Technology and innovation drive balanced earnings growth Source: Celanese interna
Slide 104: Planned expansion to support growth in Asia
Geographic Growth Planned Expansion to Support Growth in Asia Capacity expansion is planned to meet expected geographical growth targets Emulsions Nanjing China capacity doubled 2008 to 2011 Potential supply capability beyond China EVA Performance Polymers Edmonton 15% increase in capacity to produc
Slide 105: EVA Performance Polymers product portfolio evolution
EVA Performance Polymers Product Portfolio Evolution EVA Performance Polymers growth focused on high value end uses Controlled Release Differentiated Applications Thermal Lamination Food Packaging Flexible Packaging Auto Carpet Premium Applications Standard Applications Photovoltaic Medical % of Tot
Slide 106: Solar grade EVA projected demand
Solar Grade EVA Projected Demand Application of EVA in Photovoltaic Growth is driven by focus on niche applications of EVA Performance Polymers in photovoltaic Expansion into photovoltaic is driving strong growth for EVA Performance Polymers Significant Success Global diversification with direct Chi
Slide 107: Innovation into high value-add applications
Industrial Specialties Expected New Product Revenue Recent Innovations Innovation allows for expansion into high value-add applications Traditional applications Coatings: Introduced patented exterior coatings binder Non-Traditional applications Medical: Launched VitalDose(tm) controlled release EVA
Slide 108: Success of VAE for paints and coatings
Success of VAE for paints and coatings globally demonstrates commercialization capabilities Successfully translating Celanese technology to new regions Revenue Growth versus 2009 Revenue Growth versus 2009 Revenue Growth versus 2009 Americas (Launching and Developing) Europe (Established and Expandi
Slide 109: Innovation allows advantages in crude/natural gas dynamics
New Application Sales Growth Innovation allows for advantages in future crude/natural gas dynamics Source: CMAI April 2011; Celanese internal management estimates, 2009 Kline study Celanese unique product development allows for entry into new applications Paper Carpet Addressable space: ~$600 M Cela
Slide 110: Technology and innovation drive balanced earnings growth
Operating EBITDA $200+ million $111 million Innovation of new applications and technologies Expansions support customer growth in emerging regions More than offset inflation through productivity Industrial Specialties: Technology and innovation drive balanced earnings growth Source: Celanese interna
Slide 111: Improved capital cost efficiency supports geographic growth
Improved capital cost efficiency supports potential geographic growth Source: Celanese internal management estimates, 2009 Klein Study Low capital solutions facilitate economical growth into emerging regions Expected Growth of Emulsion Applications 1% 7.5% Emerging region focus 4-6% 3-4% 7-8% VAE Em
Slide 112: Expansive innovation pipeline
Expansive Industrial Specialties innovation pipeline Rich innovation pipeline for a balanced risk portfolio Existing New Established New Newness of Technology Newness of End Use Size of bubble represents relative earnings potential Source: Celanese internal management estimates
Slide 113: Moving VAE from inside the house to outside
Innovation efforts moving VAE from inside the house to outside ~$500 million addressable space New CE solution Pure Acrylic Pure Acrylic New Celanese solution Improved Burn Characteristics Improved Color Retention Source: Celanese internal management estimates 200nm Polymerize methyl methacrylate in
Slide 114: Controlled-release EVA solutions
Multiple Routes of Administration Possible EVA Well Suited for Flexible Delivery Systems Long-cycle Controlled Release EVA Performance Polymers innovation focused on expanding controlled-release solutions Transdermal Subcutaneous Intravaginal Ocular Periodontal Customizable release rate Highly bio-c
Slide 115: Industrial Specialties: Balanced earnings growth
Regional Growth Application Innovation Industrial Specialties: Balanced earnings growth Product pipeline designed to leverage global megatrends Capacity expansions planned to support customer growth Potential for first Asian emulsions facility outside China Improved Emulsions technology increases ca
Slide 116: Acetyl Intermediates
Acetyl Intermediates John Fotheringham General Manager
Slide 117: Acetyl Intermediates: Strong 2010 performance
Vinyl Acetate Monomer Acetic Acid Acetyl Intermediates 2010 Revenue2: $2,682 2010 Operating EBITDA: $411 Leading technology throughout the value chain Attractive and sustainable cost curve Global growth in excess of GDP Acetyl Intermediates Acetic Anhydride Acetate Esters and Other Derivatives Acety
Slide 118: Raising outlook for mid-term operating EBITDA to $600+ million
Raising outlook for mid-term operating EBITDA to $600+ million; Significant growth opportunities beyond 2013 Acetyl Intermediates: Balanced earnings growth Performing ahead of 2013 commitment, with upside potential Integrity of the cost curve sustained Global growth opportunities through low cost ex
Slide 119: Performing ahead of 2013 commitment
Performing ahead of 2013 commitment, with upside potential Integrity of the cost curve sustained Global growth opportunities through low cost expansions Sustained growth with attractive economics Leading technology is extended through AOPlus(r)3 for greenfield investment Leading ethanol technology e
Slide 120: Acetyl Intermediates: 2013 earnings outlook
Operating EBITDA $600+ million $411 million Acetyl Intermediates: 2013 earnings outlook Process technology productivity and innovation improve operating cost Leading technology supports continued growth On track to deliver increased 2013 commitment
Slide 121: Acetic acid cost curve
2011E Acetic Acid Cost Curve 2013E Acetic Acid Cost Curve No major change to underlying fundamentals Acetic acid cost curve intact By-Product Avg Other Leading Technology Ethylene Highest Cost China MeOH Carbonylation 2011E Demand Ethanol Average Celanese Avg Non-China MeOH Carbonylation Effective I
Slide 122: Expected capacity additions based on disadvantaged technology
Company 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Sipchem BP Nanjing Yunnan Yunwei Shaanxi Yanchang Tianjin Bohai Henan Yima Sopo Chang Chun (Taiwan) Wujing (Huayi Anhui) Yongmei Longyu BP Chongqing Yankuang Source: Current industry estimates Expected capacity additions based on disadvantage
Slide 123: Global acetic acid demand
Global Acetic Acid Demand Required additional acetic acid capacity by 2013 to maintain Celanese share is 300-500kta Expansion or greenfield option Low cost expansions provide: Rapid implementation Raw material optionality Greenfield option allows for: Strategic geographic location Raw material econo
Slide 124: Acetic acid technology provides global growth opportunities
Celanese acetic acid technology provides global growth opportunities Clear Lake, TX Acid = 1,200 ? 1,500 Natural Gas Based Singapore Acid = 600 ? 1,500 Oil Based Nanjing, China Acid = 1,200 ? 1,500 Coal Based Customer demand growing in all regions Expansion decisions based on: Raw material cost Cust
Slide 125: VAntage2: next generation vinyl acetate technology
VAntage(r)2: Next generation of vinyl acetate technology acetate technology acetate technology * Applicable to existing large units or greenfield Further improvement in VA technology for expansion or greenfield plant
Slide 126: Global VAM manufacturing footprint
Celanese Global VAM Manufacturing Footprint Celanese VAM technology provides global growth opportunities Note: All capacity and expansion values shown in kt per annum Clear Lake, TX VAM = 310 ? 460 Singapore VAM = 210 Nanjing, China VAM = 300 ? 450 Frankfurt, Germany VAM = 285 ? 415 Tarragona, Spain
Slide 127: Acetyl Intermediates: 2013 earnings outlook
Operating EBITDA $600+ million $411 million Acetyl Intermediates: 2013 earnings outlook Process technology productivity and innovation improve operating cost Leading technology supports continued growth On track to deliver increased 2013 commitment
Slide 128: Performing ahead of 2013 commitment
Performing ahead of 2013 commitment, with upside potential Integrity of the cost curve sustained Global growth opportunities through low cost expansions Sustained growth with attractive economics Leading technology is extended through AOPlus(r)3 for greenfield investment Leading ethanol technology e
Slide 129: AOPlus3: next generation acetic acid technology
AOPlus(r)3: Next generation of acetic acid technology AOPlus(r)3 provides advantaged and scalable technology Capital Advantage Relative Capital Intensity Raw Material & Conversion Cost Advantage Relative Cost Per Ton Source: Various press releases, 2007 China Acetic Acid Conference, and Celanese int
Slide 130: Performing ahead of 2013 commitment
Performing ahead of 2013 commitment, with upside potential Integrity of the cost curve sustained Global growth opportunities through low cost expansions Sustained growth with attractive economics Leading technology is extended through AOPlus(r)3 for greenfield investment Leading ethanol technology e
Slide 131: Breakthrough ethanol technology provides significant opportunity
Fuel ~60-70 mmT ~5-6 mmT Industrial Ethanol Demand China Industrial Ethanol Celanese's breakthrough ethanol technology provides significant opportunity Technology increasing access to addressable space China is largest consuming region with fastest and most sustainable growth Diversified and value-a
Slide 132: Strategic plan to capture Chinese industrial ethanol growth
Estimated China Industrial Ethanol Demand Celanese strategic plan is to capture Chinese industrial ethanol growth Industrial ethanol growth strategy Growth in ethanol demand by 2016 is 1,200-1,400kta China demand growing at ~8-10% Celanese ethanol technology provides alternative to corn Celanese adv
Slide 133: TCX ethanol process: synergies with acetyl business
Celanese TCX(tm) ethanol process Synergies with Acetyl Business Shared raw materials Shared customers Acetyl technologies Ethanol technologies Ethanol Acetyl products Ethylene Natural gas Coal Pet coke Biomass (future) Waste (future) Syngas Feedstock Integrated Complex Products Existing acetyl facil
Slide 134: Expected China industrial ethanol cost curve
2014 Expected China Industrial Ethanol Cost Curve Celanese ethanol technology provides a leading cost position Celanese TCX(tm) technology has a clear and sustainable cost curve advantage Celanese technology enables arable land use for foodstuffs Limited approval for new corn based supply $ per ton
Slide 135: Extended portfolio accelerates sustainable growth
Ethanol Considerations Acetyl Intermediates Revenue Detail Extended portfolio provides platform to accelerate sustainable growth Large and rapidly growing demand for industrial uses Substantial synergy with existing acetyl business Leveraging Celanese acetyl know-how Providing Celanese significant c
Slide 136: Raising outlook for mid-term operating EBITDA to $600+ million
Raising outlook for mid-term operating EBITDA to $600+ million; Significant growth opportunities beyond 2013 Acetyl Intermediates: Balanced earnings growth Performing ahead of 2013 commitment, with upside potential Integrity of the cost curve sustained Global growth opportunities through low cost ex
Slide 137: Advanced Fuel Technologies
Advanced Fuel Technologies Steven Sterin Senior Vice President and Chief Financial Officer
Slide 138: TCX technology: significant growth and value potential
Celanese TCX(tm) technology: Significant growth and value potential Industrial Gas "Plus" (IG "plus") model delivers appropriate payback for: Cost of capital Operational excellence PLUS advantaged technology Stable earnings profile TCX(tm) ethanol today would be equivalent to gasoline produced at ~$
Slide 139: Existing technologies vs. Celanese TCX ethanol technology
Existing Technologies Celanese TCX(tm) Ethanol Technology Technology Undifferentiated fermentation processes Proprietary and breakthrough technology building upon Celanese industry-leading acetyl platform Total Cost High cost per gallon; volatile costs Low cost per gallon; less volatile costs Feedst
Slide 140: TCX technology: significant growth and value potential
Celanese TCX(tm) technology: Significant growth and value potential IG+ Industrial Gas "Plus" (IG "plus") model delivers appropriate payback for: Cost of capital Operational excellence PLUS advantaged technology Stable earnings profile TCX(tm) ethanol today would be equivalent to gasoline produced a
Slide 141: Global fuel ethanol demand: significant opportunity
Global Fuel Ethanol Demand Significant Opportunity for Celanese TCX(tm) provides potential access to fuel ethanol industry ~5-6 Industrial Global fuel ethanol demand forecasted to double in next 10 years Initial targeted geographies represent 1/3 of global growth Initial opportunities primarily in A
Slide 142: Ethanol is an excellent fuel blendstock
Excellent Blendstock for Refiners Environmental Benefits Ethanol - at the right price - is an excellent fuel blendstock Ethanol Benefits: Accepted globally as a high-octane fuel blending component Ethanol Benefits: Advantaged high-octane blending component with superior environmental qualities Biode
Slide 143: Fermentation-based technology unlikely to meet demand growth
Fermentation-based ethanol technology unlikely to meet demand growth Global fuel ethanol demand expected to double over next 10 years; Acute shortage in Asia 1 Renewable Fuel Standard (RFS) 2 Celanese internal management estimates. RFS mandates 35B gallons of ethanol blending by 2020, although today
Slide 144: TCX provides new solution to meet global needs
Refineries Countries / Governments Celanese TCX(tm) ethanol technology provides new solution to meet anticipated global needs Economic development and job creation Reduces dependence on foreign energy sources Utilizes abundant low-cost domestic resources Does not require government subsidies Provide
Slide 145: Targeting regions most receptive to TCX
Needs Addressed by TCX(tm) Targeting regions most receptive to TCX(tm) offerings * CIVETS: Columbia, Indonesia, Vietnam, Egypt, Turkey and South Africa Initially targeting countries most receptive to the TCX(tm) value proposition Target Regions Large and/or growing gasoline demand Currently importin
Slide 146: TCX offers a new alternative for policy makers
Large and/or growing gasoline demand Currently importing crude oil or gasoline to meet demands and desire for more domestic energy security Arable land preservation and food prices are a strategic priority Utilize abundant local resources (natural gas, coal, pet coke) for energy security Desire to i
Slide 147: TCX technology: significant growth and value potential
Celanese TCX(tm) technology: Significant growth and value potential IG+ Industrial Gas "Plus" (IG "plus") model delivers appropriate payback for: Cost of capital Operational excellence PLUS advantaged technology Stable earnings profile TCX(tm) ethanol today would be equivalent to gasoline produced a
Slide 148: High return potential
High Return Potential TCX(tm) Historical Advantage in Asia TCX(tm) technology has potential to provide favorable returns for producers and customers TCX(tm) ethanol would have provided advantage to customers and shareholders as a low-cost alternative to gasoline TCX(tm) ethanol today would be equiva
Slide 149: TCX ethanol technology: sustainable leading cost position
TCX(tm) ethanol technology: Sustainable leading cost position 1 Celanese internal management estimates, available public information. TCX(tm) costs pro forma based on current and historical information 2 Celanese internal management estimates; only grain/cassava-based fuel ethanol plants are approve
Slide 150: Expected to maintain leadership versus emerging technologies
Beyond 2nd Generation Includes algae, etc. Challenges of Alternative Technologies Expected to maintain leadership position versus emerging technologies Significantly lower cost, larger scale, and flexible, abundant feedstock make TCX(tm) a reliable source to meet global demand Most emerging technolo
Slide 151: TCX technology: significant growth and value potential
Celanese TCX(tm) technology: Significant growth and value potential Industrial Gas "Plus" (IG "plus") model delivers appropriate payback for: Cost of capital Operational excellence PLUS advantaged technology Stable earnings profile TCX(tm) ethanol today would be equivalent to gasoline produced at ~$
Slide 152: Targeted business model enhances value creation
Focused Targeted business model enhances value creation Builds upon proprietary, advanced technology for the benefit of our customers in the fuel sector Protects Celanese's leading proprietary technology Celanese does not participate in global fuel ethanol distribution Advanced technology: Celanese
Slide 153: TCX potential
TCX(tm) Potential TCX(tm) technology potential TCX(tm) ethanol investments provide appropriate returns for Celanese customers and shareholders Ethanol investments do not provide favorable returns for customers or investors Existing and emerging ethanol technology can supply the growing demand Ethano
Slide 154: Advanced Fuel Technologies: accelerating growth and shareholder value
Potential to significantly accelerate Celanese growth beyond 2013 Advanced Fuel Technologies: Accelerating growth and shareholder value Technology provides potential for low-cost alternative to meet world's growing need for clean burning motor fuels TCX(tm) offers compelling value proposition for cu
Slide 155: Appendix
® Celanese Appendix 4
Slide 156: Challenges of biomass in the U.S.
Challenges of Biomass in the U.S.3 Availability of arable land will impact biomass ethanol supply growth Additional biomass ethanol supply likely to be at the expense of food Between 2000-2010, usage of the corn crop for fuel ethanol has increased from 6% to 38% Corn price has increased from $1.85/b
Slide 157: Structured for Value Creation
Structured for Value Creation Steven Sterin Senior Vice President and Chief Financial Officer
Slide 158: Structured for value creation: improved capital structure
Structured for value creation Improved capital structure Positioned to support growth Sustainable value creation from strategic affiliates Evolution of Celanese valuation
Slide 159: Capital structure strategy
Debt Repayment Capital structure strategy ($ in millions) Current Level - Dividends Stock Repurchase Opportunistic - Offset Dilution- Strategic Opportunities * Ending cash on 03/31/2011 of $722 million less $100-$150 million of operating cash. Targeted Strategic Cash Reserve $500 - $1,000 + + + + +
Slide 160: Improved maturity profile provides financial flexibility
Improved maturity profile provides long-term financial flexibility Existing Term Loan September 2010 Issued Senior Unsecured Notes May 2011 Senior Unsecured Notes Revolver Capacity Note: Does not reflect maturities of capital leases, industrial revenue bonds, other bank obligations or affiliate borr
Slide 161: Credit profile strong and improving
Credit Profile Strong and Improving Advantaged debt structure: Flexible, low cost, sustainable Net Debt/Operating EBITDA Borrowing rates at favorable end of high yield market Recent deals demonstrate broad access to capital markets Interest expense declines by ~$30 million in 2012 versus 2011 2005 a
Slide 162: Structured for value creation: positioned to support growth
Structured for value creation Improved capital structure Positioned to support growth Sustainable value creation from strategic affiliates Evolution of Celanese valuation
Slide 163: Track record of generating significant cash
Track record of generating significant cash * Defined as cash flow from operations less capital expenditures and change in net working capital plus growth and productivity investments Cash Generation ($ in millions) Advantaged technology - low capital intensity Strict financial discipline - strong i
Slide 164: Balanced approach: reinvestment and returning cash
Low High Balanced approach: High-return reinvestments and returning cash to shareholders Return on Capital Deployed/ Value Creation Shareholder Returns through Cash Deployment (2005-2010)* Return of Capital and Capital Structure Strategic Investments Productivity Growth Acquisitions Total debt repay
Slide 165: Investments result in significant earnings growth
Investments result in significant earnings growth Balanced deployment of cash to maximize shareholder value 2005 - 2010 Total strategic investments: ~$1.9 Billion Total earnings power improvement2: ~$650 million Average ROIC >25% 1 Includes impact of May 2010 refinancing 2 Operating EBITDA improveme
Slide 166: ROIC - WACC spread versus industry average
Consistently delivering high returns for shareholders through cash deployment Celanese ROIC - WACC Spread versus Industry Average 2005-2010 ROIC - WACC Spread Note: Specialty Chemicals companies include DuPont, Ecolab, FMC, Nalco and Rockwood. Commodity Chemicals companies include Dow, Eastman, Geor
Slide 167: Efficient capital spending
Capital Spending by Category Efficient capital spending Note: Excludes Kelsterbach plant relocation Maintain Plant Other Growth Nanjing Productivity ~$300 million per year in capital achieves 2013 target; Additional capital to address growth opportunities
Slide 168: Positioned for growth
Positioned for growth Efficient and properly timed capacity investments create platform for future growth AEM Nanjing GUR/LFT EU POM Fortron PPS Consumer Specialties Nantong flake/tow Industrial Specialties Edmonton EVA Nanjing VAE Acetyl Intermediates Nanjing acetic acid to 1,200 kta Replaced highe
Slide 169: Diversified manufacturing footprint
Diversified manufacturing footprint Shift towards Asia Improved proximity to emerging regions Expanded footprint in lower cost geographies Enhanced ability for strategic raw material sourcing Optimizing asset utilization Realign assets to increase efficiency Leading technology Continuous productivit
Slide 170: Structured for value creation: strategic affiliates
Structured for value creation Improved capital structure Positioned to support growth Sustainable value creation from strategic affiliates Evolution of Celanese valuation
Slide 171: Strategic affiliates add to technology and specialty materials capability
Strategic affiliates add to technology and specialty materials capability Strategic affiliates add significant value to the Celanese portfolio 1 Determined through Celanese internal management estimates of revenues from our China cost method investments 2 Excludes intersegment sales and includes Oth
Slide 172: Strategic affiliates extend specialty materials franchises
Strategic affiliates are complementary and extend specialty materials franchises Strategic affiliates have similar earnings growth and business model as Celanese businesses Post start-up of POM facility in Ibn Sina
Slide 173: Acetate position in China continues to strengthen
Acetate position in China continues to strengthen portfolio Expansions lead to growth in earnings and dividends 12 expansions since China ventures started in 1986 April 2010 - Government approved latest expansion and extension of agreement Multiple Venture Facilities Zhuhai Cellulose Fibers Co., Ltd
Slide 174: AEM Affiliates - Overview
AEM Affiliates - Overview Total Affiliate Revenue and EBITDA AEM Strategic Affiliates Footprint Ibn Sina Al Jubail, Saudi Arabia Korean Engineered Plastics Ulsan, Korea Polyplastics Nantong, China Well positioned to capture growth opportunities in emerging regions Polyplastics Kaohsiung, Taiwan Poly
Slide 175: Polyplastics - A Celanese and Daicel Venture
Polyplastics - A Celanese and Daicel Venture AEM - Polyplastics Highlights Established in 1964 Regional Sales - 100% Asia (50% Japan; 50% ROA) Japan, Malaysia, Taiwan, China Key Products: POM, LCP, PBT, PPS Applications: Automotive, electronics, durable white goods Strategic Objectives: Build upon t
Slide 176: Ibn Sina - A Venture between Celanese, SABIC and Duke Energy
Ibn Sina - A Venture between Celanese, SABIC and Duke Energy AEM - Ibn Sina Highlights Established in 1981 Regional Sales - 55% ME; 25% Asia, 20% EU Manufacturing: Saudi Arabia Key Products: Methanol, MTBE, POM (2014) Strategic Objectives: Low cost leadership in methanol and MTBE Platform for downst
Slide 177: Fortron Industries and Korea Engineering Plastics
Fortron Industries - A venture between Celanese and Kureha Corporation Korea Engineering Plastics - A venture between Celanese, Mitsubishi Gas and Mitsubishi Corporation AEM - Affiliates Strategy Highlights Established in 1992 Regional Sales - 60% NA/EU; 40% Asia Manufacturing: Wilmington, North Car
Slide 178: Hidden Value of Strategic Equity Affiliates
Hidden Value of Strategic Equity Affiliates ($ in millions)2 Significance of Strategic Equity Affiliates Proportional Affiliate EBITDA >$100 million annual EBITDA in strategic affiliates not reflected in Operating EBITDA Proportional Affiliate EBITDA not included in CE 2010 Operating EBITDA $106 Ent
Slide 179: Structured for value creation: evolution of Celanese valuation
Structured for value creation Improved capital structure Positioned to support growth Sustainable value creation from strategic affiliates Evolution of Celanese valuation
Slide 180: Celanese value proposition
Celanese value proposition: an attractive investment for shareholders 10-15% Earnings Growth Industrial Ethanol Advanced Fuel Technologies Potential of Significant Opportunity in Fuels Additional Value of Industrial Ethanol Accelerating Value of Current Businesses Growth greater than global GDP Stro
Slide 181: Reconciliations of non-US GAAP financial information
Reconciliations of non-US GAAP financial information
Slide 182: Reg G Reconciliation
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Slide 183: Reg G Reconciliation
© Celanese Reg G Reconciliation
Slide 184: Other Charges and Other Adjustments
G Reg G Reconciliation ® Celanese ‘Other Charges and Other Adjustments -Reconclaion ofa Non SS GAAP Measure -Unauated Other charges: ‘Year Ended December 24, {in US$ mitions) Zoid ———300o 2008 2007 2008 2005, Employee termina Dono z 705 a 2 7 7 Pantofice closures 4 7 a " 6 “icon Kelstebach plantrelo
Slide 185: Net Sales and Operating EBITDA Including Strategic Affiliates
Co Reg G Reconciliation ® Celanese Reconciliation of Consolidated Net Sales and Operating EBITDA Including Strategic Affliates - ‘a Non-US GAAP Measure - Unaudited Year Ended December 31,2010 Strategic afliates (in US$ millions) ‘As reported _ (proportional share)! ‘Advanced Engineered Materials: 1.
Slide 186: Reg G Reconciliation
Celanese Reg G Reconciliation ~egals] B@n~Ealg 38 “RRB SRS RAR SBR age] ge Reel qaemggy] ese vega) as- vgs] se gersgge| seems alg) ~~ aaegaisl ese-gsle| eee
Slide 187: Reg G Reconciliation
Celanese Reg G Reconciliation Siaale] sere a (seme t-te eo e CGaiveeen tammy eee 5 (x9 soap cope Sammy eo . * (xap)omed sont enn Sammy eee a ° ‘Gc) oered- sammy eo (comesno pena ate paecs) mmr came as ss = (00m in: samey eo w : CGaivscen- emmy eee v1 : (3) soem cope: emmy eae & & te (x09) oped boome
Slide 188: Net Debt Reconciliation
Reg G Reconciliation Net Dott-Reconcition of Non-US GAAP Measure -Unauxited ® Celanese ‘Year Ended December 31, Us sitions) 20, 2 2008 "007 2006 “Shor ier borrowings and current installments oflong tem debt-hird partyand alates 228 22 23 2m 209 155, Long tem debt 2980 3250 3300 3204 3.180 3202 “Tota
Slide 189: Adjusted Earnings Per Share Reconciliation
- Reg G Reconciliation ® Celanese ‘Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-US GAAP Measure - Unaudited Year Ended December 31, (in US $ milions, except per share data) 2010 2009, per per share share Earnings (loss) from continuing operations. 424-268 4943.14 Deduct income tax (p
Slide 190: Reconciliation of Adjusted Free Cash Flows
94 Celanese Reg G Reconciliation Reconciliation of Adjusted Free Cash Flows - Reconciliation of a Non-US GAAP Measure - Unaudited ‘Year Ended December 31, ‘Total Company ($ US in milions) 2005, 2006 2007. 2008, 2008 2010 Neteash provided by operating actwtes 704 75 366 586 596 452 Less: Capital expe
Slide 191: Reg G Reconciliation
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Slide 192: Ticona Affiliate Results
Celanese Reg G Reconciliation Ticona Affiliate Results - Total - Reconciliation of a Non-US GAAP Measure - Unaudited (in US $ millions) Year Ended December 31, _ MZ iii 2007 2006 Net Sales Ticona Affiiates' 1,270 4,172 IBN Sina” 886 726 Total 2,156 1,898 Ticona Affiliates - Operating profit 188 1741