Slide 1: Celanese 2Q 2010 Earnings Conference Call / Webcast
Dave Weidman, Chairman and CEO Steven Sterin, Senior Vice President and CFO Celanese 2Q 2010 Earnings Conference Call / Webcast Thursday, July 29, 2010 10:00 a.m. ET
Slide 2: Forward Looking Statements and Use of Non-GAAP Measures
Forward Looking Statements Reconciliation and Use of Non-GAAP Measures to U.S. GAAP This presentation may contain "forward-looking statements," which include information concerning the company's plans, objectives, goals, strategies, future revenues or performance, capital expenditures, financing nee
Slide 3: Dave Weidman, Chairman and Chief Executive Officer
Dave Weidman Chairman and Chief Executive Officer
Slide 4: Celanese Corporation 2Q 2010 highlights
Celanese Corporation 2Q 2010 highlights in millions (except EPS) 2nd Qtr 2010 2nd Qtr 2009 Net Sales $1,517 $1,244 Proportional Net Sales from Affiliates $397 $306 Total: $1,914 $1,550 Operating Profit/(Loss) $156 $89 Adjusted EPS $1.12 $0.56 Operating EBITDA $332 $248 Affiliate EBITDA in excess of
Slide 5: Steven Sterin, Senior Vice President and CFO
Steven Sterin Senior Vice President and CFO
Slide 6: Ibn Sina venture provides strategic value to Advanced Engineered Materials
Ibn Sina venture provides strategic value to Advanced Engineered Materials Venture extended until 2032 provides ongoing earnings POM manufacturing utilizes advantaged raw materials to support growing customer demand Increased economic participation yields higher earnings beyond 2013 Provides structu
Slide 7: Value of Ibn Sina Affiliate: AEM Business EBITDA Margin
AEM Business EBITDA Margin* Value of Ibn Sina Affiliate The proposed POM facility leverages economically advantaged raw materials Ibn Sina is a structural hedge against raw material volatility AEM margins including benefit of Ibn Sina * See Slide 24 for reconciliation of Non-U.S. GAAP Measure. AEM B
Slide 8: Advanced Engineered Materials second quarter 2010
Second Quarter 2010: Strong volume and earnings performance as demand increased across all end-use segments - led by automotive and electronics Specialty polymers business model results in high rate of conversion of revenue to earnings Robust innovation pipeline drives growth in new products and app
Slide 9: Consumer Specialties second quarter 2010
Second Quarter 2010: Increased volumes from recovery of lost production related to outage in 1Q 2010 Strong performance with earnings growth in strategic China ventures Consumer Specialties Outlook: Stable earnings and margins throughout second half of 2010 Demand levels expected to be sustained in
Slide 10: Industrial Specialties second quarter 2010
Second Quarter 2010: Increased volumes from improved global demand and pricing partially offset by significantly higher raw material costs Emulsions business in Asia at full utilization ahead of capacity expansion in mid-2011 Innovation helps drive volume and earnings growth in EVA and Emulsions Ind
Slide 11: Acetyl Intermediates second quarter 2010
Acetyl Intermediates Second Quarter 2010: Improved global demand and advantaged acetyl technology drive solid results Demand and raw material driven pricing offset higher raw material and energy costs Sustainable productivity improvements positively impact margins Outlook: Continued modest global ec
Slide 12: Second Quarter 2010: Earnings and dividend impact
Second Quarter 2010: Earnings and dividend impact Higher equity earnings driven by improved global demand for specialty engineered polymers, methanol and MTBE Higher dividends from China acetate ventures reflect continued growth and improved financial performance in emerging regions Income Statement
Slide 13: 2010E Cash Flow Expectation off EBITDA Base
2010E Cash Flow Expectation off EBITDA Base 2010E Cash Flow Expectation off EBITDA Base Cash Taxes $100 - $120 Capital Expenditures $240 - $260 Reserve/Other $120 - $150 Net Interest $180 - $190 Pension $30 - $40 Working Capital $80 - $100 Adjusted Free Cash Outflows* $750 - $860 Dividends/Debt Serv
Slide 14: Appendix Notes
Appendix Notes: 1. References on the following slides to tables correspond to the tables included with Celanese press release dated July 29, 2010. 2. Table 7 references to slide 20
Slide 15: Free Cash Flow 2Q 2010 Adjusted Free Cash Flow
Free Cash Flow 2Q 2010 Adjusted Free Cash Flow Adjusted Free Cash Flow Adjusted Free Cash Flow $ in millions 2Q 2010 2Q 2009 Net cash provided by operating activities $164 $99 Adjustments to operating cash for discontinued operations ($3) - Net cash provided by operating activities from continuing o
Slide 16: Ibn Sina Accounting Change
Ibn Sina Accounting Change 2006 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 YTD 2008 IBN Sina cost dividends as reported (53) (78) (27) (29) (34) (29) (119) IBN Sina equity earnings as adjusted 76 68 30 28 32 28 118 Income Statement Impact 23 (10) 3 (1) (2) (1) (1) Segment Reporting Changes AEM Operating E
Slide 17: 2Q 2010 Other Charges and Other Adjustments by Segment
2Q 2010 Other Charges and Other Adjustments by Segment - Unaudited in millions AEM CS IS AI Other Total Employee termination benefits 1 1 - 1 1 4 Plant/office closures - - - - - -Ticona Kelsterbach plant relocation 4 - - - - 4 Plumbing actions (2) - - - - (2) Asset impairments - - - - - -Other - - -
Slide 18: Reg G: Reconciliation of Adjusted EPS
Reg G: Reconciliation of Adjusted EPS -Unaudited Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure Three Months Ended Six Months Ended June 30, June 30, (in $ millions, except per share data) 2010 2009 2010 2009 As adjusted As adjusted per per per per share share share s
Slide 19: Reg G: Reconciliation of Net Debt
Reg G: Reconciliation of Net Debt - Unaudited Net Debt - Reconciliation of a Non-U.S. GAAP Measure June 30, December 31, (in $ millions) 2010 2009 Short-term borrowings and current installments of long-term debt - third party and affiliates 265 242 Long-term debt 3,162 3,259 Total debt 3,427 3,501 L
Slide 20: Reg G: Other Charges and Other Adjustments
Reg G: Other Charges and Other Adjustments -Unaudited Reconciliation of Other Charges and Other Adjustments Other Charges: Three Months Ended Six Months Ended June 30, June 30, (in $ millions) 2010 2009 2010 2009 Employee termination benefits 4 5 9 29 Plant/office closures - - 6 -Ticona Kelsterbach
Slide 21: Segment Data and Reconciliation of Operating Profit to Operating EBITDA
21 Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA - a Non-U.S. GA AAP Measure - Unaudited Three Months Ended Six Months Ended June 30, June 3 30, (in $ millions) 2010 2009 2010 2009 Reg As adjusted As adjusted Net Sales Advanced Engineered Materials 282 184 564 349 Co
Slide 22: Reg G: Equity Affiliate Preliminary Results and Celanese Proportional Share
Reg G: Equity Affiliate Preliminary Results and Celanese Proportional Share -- Unaudited Equity Affiliate Preliminary Results - Total - Unaudited Three Months Ended Six Months Ended (in $ millions) June 30, June 30, 2010 2009 2010 2009 As adjusted As adjusted Net Sales Ticona Affiliates - Asia1 379
Slide 23: Reg G: Equity Affiliate Results - Celanese Proportional Share
Reg G: Equity Affiliate Preliminary Results and Celanese Proportional Share - Unaudited Equity Affiliate Preliminary Results - Celanese Proportional Share - Unaudited5 Three Months Ended Six Months Ended (in $ millions) June 30, June 30, 2010 2009 2010 2009 As adjusted As adjusted Proportional Net S
Slide 24: Reg G: Reconciliation of Business EBITDA
Business EBITDA - Reconciliation of a Non-U.S. GAAP Measure Reg G: Reconciliation of Business EBITDA 2006 2007 (in $ millions) FY FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Net Sales Advanced Engineered Materials 915 1030 294 300 272 195 1061 165 184 220 239 808 282 282 Operating Profit (Loss) Advanced