Slide 1: Transformation and Results
Transformation and Results Celanese 4Q2004 Earnings Conference Call/Webcast Mon., Feb. 28, 2005 10 a.m CT David Weidman, CEO C.J. Nelson, CFO
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 needs and other information that is not historical informati
Slide 3: Reconciliation of Non-GAAP Measures to U.S. GAAP
Reconciliation of Non-GAAP Measures to U.S. GAAP This presentation reflects our performance measures, net debt, and Segment Earnings as non-U.S. GAAP measures. The most directly comparable financial measure presented in accordance with U.S. GAAP in our financial statements for net debt is total debt
Slide 4: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information Adjusted EBITDA, a performance measure used by management, is defined as earnings (loss) from continuing operations, plus interest expense net of interest income, income taxes and depreciation and amortization, and further adjusted for certain cash and non-cash
Slide 5: Q4 and '04 Results
Q4 and ’04 Results (in $millions) Q404 Combined FY04 Sales $1,332 up 15% $5,069 up 10 % Gross Profit $303 up 98% $975 up 35% Net Earnings (loss) $(57 ) $(175 ) Dividends from Affiliates $11 $77 Adjusted EBITDA $187 up 3% $801 up 19%
Slide 6: C. J. Nelson
C. J. Nelson Executive Vice President and Chief Financial Officer
Slide 7: Financial Overview
Financial Overview Fourth Quarter Full Year (in $millions) Successor Predecessor Combined Predecessor 2004 2003 2004 2003 Sales 1,332 1,155 5,069 4,603 Gross Profit SG&A (220) (126) (635) (510) Special Charges (33) (14) (119) (5) Operating Profit (Loss) (10) Interest Expense (72) (13) (306) (49) Tax
Slide 8: Net Earnings to Adjusted EBITDA walk - 2004
Net Earnings to Adjusted EBITDA walk - 2004
Slide 9: Net Earnings to Adjusted EBITDA walk ($ million)
21 15 49 ($ million) Adjusted EBITDA Other Other non-cash Inv step-up 7») ‘ Other unusual ‘Transcosts Mgmt comp SpChgs/ Other Rest _/ D&A Taxes Interest Net Earnings (Loss) rges Non-cash cha Unusual and non-recurring $ 70 $ 259
Slide 10: Significant Contribution from Joint Ventures
Significant Contribution from Joint Ventures
Slide 11: Joint Venture Investments Drive Strategic Growth and Financial Performance
Joint Venture Investments Drive Strategic Growth and Financial Performance Note: (1) 2004 Proportional D&A from affiliates shown is an estimate (2) D&A as presented in the chart above represents the amount recorded by the investees based on local generally accepted accounting principles, computed in
Slide 12: Pro Forma Capitalization
Pro Forma Capitalization (1) Pro-Forma as of 12/31/04 December 31, 2004 Post- IPO With Acquisitions Cash $838 $838 $838 Existing Term Loan B (2) $624 $0 $0 New Term Loan B (3) $0 $1,569 $1,769 New Delayed Draw Term Loan C $0 $0 $242 Floating Rate Term Loan $350 $0 $0 Total Senior Debt $974 $1,569 $2
Slide 13: Pension and OPEB Plan Obligations
Pension and OPEB Plan Obligations
Slide 14: 2004 Capital Expenditures
2004 Capital Expenditures
Slide 15: Segment Spending ($ millions)
($ millions) Segment Spending Perf Products Other $3 $5 Cost Reduction $76 Total Capital Expenditure = $210
Slide 16: Business Segment/2005 Outlook
Business Segment/2005 Outlook David Weidman Chief Executive Officer
Slide 17: 2004 Business Highlights
2004 Business Highlights
Slide 18: Chemicals Products Historical Perspective
Chemicals Products Historical Perspective:
Slide 19: Chemical Products Outlook
Chemical Products Outlook 1 st Quarter
Slide 20: Ticona Historical Perspective
Ticona Historical Perspective
Slide 21: Ticona Outlook
Ticona Outlook 1 st Quarter
Slide 22: Acetate/Performance Products Summaries
Acetate/Performance Products Summaries Acetate
Slide 23: Combined Business Outlook
Combined Business Outlook 1 st Quarter
Slide 24: Appendix – Full Year 2005 Key Modeling Assumptions
Appendix – Full Year 2005 Key Modeling Assumptions Equity – CE Shares • Common stock = 158.7 million outstanding • Fully diluted common stock = 170.7 million • Preferred stock dividends = approx. $10 million on 9.6 million outstanding shares Equity – CAG Minority Interest • Approximately 8 million s
Slide 25: Reconciliation of Segment Earnings
Reconciliation of Segment Earnings Q4 2004 Successor Q4 2003 Predecessor Technical Technical Chemical Polymers Acetate Performance Other Chemical Polymers Acetate Performance Other Products Ticona Products Products Activities Total Products Ticona Products Products Activities Total Earnings(loss) fr