Celanese Corporation · NYSE:CE
Celanese — HVB Investment Conference 2003
24 slides from Celanese's conference presentation, Oct 2, 2003
Slide 1: Celanese
‘Y Celanese
Slide 2: Focus on Results
Focus on Results Claudio Sonder Chief Executive Officer 2 HVB Investment Conference , October 2, 2003
Slide 3: 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, assumptio
Slide 4: Celanese: A Leading Chemical Company
Celanese: A Leading Chemical Company > #1 or # 2 in ~70% of revenue 2002 Sales by Destination: € 4.3 bn. > 25 production and 6 R&D sites in 11 countries NAFTA Asia > North American core 44% 18% = ~50% of sales, ~60% of its Non-consolidated Asian employees and ~70% of affiliates: ~€1bn sales assets 4
Slide 5: Celanese Presence in Asia
Celanese Presence in Asia 10 Celanese and JV sites in Asia: Polyplastics Ticona Korea Engineering Plastics Celanese Acetate Nantong Cellulose Fibers Co. Celanese Chemicals* TEPCO, Polyplastics 2002 Sales by Destination: € 4.3 bn. subsidiary, Taiwan. Zhuhai and Kunming Fibers Co. NAFTA Asia Non-conso
Slide 6: Celanese Business Segments
Celanese Business Segments Full Year 2002 Acetyl Products Ticona Technical Polymers OP: €155 m. Acetic acid, vinyl acetate, Polyacetal, polyester, UHMW- polyvinyl alcohol, emulsions PE, liquid crystal polymers Sales: €4.3 bn Markets: Paints, coatings, Markets: Automotive, electrical, adhesives elect
Slide 7: Progress on our Strategy
Progress on our Strategy We optimized We improved We seized growth our portfolio productivity opportunities > Divestitures > FORWARD > Acquisition of completed Initiatives emulsions businesses ? Trespaphan > Operational > Capacity expansions/ ? US amines Excellence new plant: technical > Six Sigma p
Slide 8: Optimize Value: Portfolio Classification
Portfolio Classification Acetyls PVOH Emulsions Core Ticona Specialties Acetate Optimize Value Oxo, Acrylates Nutrinova Nylon Arrows indicate sales in 2002 8 HVB Investment Conference , October 2, 2003
Slide 9: Future Prospects for Our Portfolio
Future Prospects for Our Portfolio Seek Growth wt h ro Opportunities nalG New businesses & Exter products for nal/ cars, coatings, adhesives, R egio electrical/electronic, anic / Customer-focused consumer goods O rg solutions Ticona, Chemicals & Cost & Acetate, Nutrinova technology leadership Acetyl
Slide 10: Extending the Acetyls Value Chain
Extending the Acetyls Value Chain Application- Base Chemicals oriented End markets Chemicals 2002 Emulsions Emulsion powders Vinyl acetate Acetic acid monomer 2000 Polyvinyl alcohol From base to application-oriented chemicals 10 HVB Investment Conference , October 2, 2003
Slide 11: Financial Priorities
Financial Priorities > Improve performance = Operating Profit 8-10% over cycle = Maximize operating cash flow > Maintain strict investment discipline = Capital expenditures = Working Capital = Acquisition / divestment > Manage finances prudently = Maintain investment grade debt rating = Competitive
Slide 12: 2nd Quarter & First Half 2003 Results
2nd Quarter & First Half 2003 Results in € millions Q2 2002 Q2 2003 H1 2002 H1 2003 Net sales 1,121 1,079 2,218 2,189 Operating Profit 19 110 49 168 Depreciation and Amortization 74 70 149 140 Special (charges), net (3) 80 (3) 79 Earnings from continuing operations before taxes and minority interest
Slide 13: Taking Action in our Businesses
Taking Action in our Businesses Dr. Lyndon Cole Board of Management, President Ticona 13 HVB Investment Conference , October 2, 2003
Slide 14: Acetyl Technology Leadership
Acetyl Technology Leadership Acetic Acid Full Cash Cost Acetic Acid US$ per ton Global Demand > Primary technology: AO Plus™ > Leading technology in industry as demonstrated by expansion of Clear Lake Plant (1,200 kt capacity) Celanese best technology Vinyl Acetate Wood, Ethanol, > Primary technolog
Slide 15: China Is Fastest Growing Acetyls Market
China Is Fastest Growing Acetyls Market Acetic Acid kt Total Demand World-Scale Plant Planned 1800 1740 kt 1600 > 600,000 ton acetic acid facility 1400 Total Demand 1190 kt > Startup in late 2005/early 2006 1200 CAGR 10% 1000 800 > Based on leading, cost effective 600 technology 400 200 > More than
Slide 16: Leading Substitution to Ecologically Friendly Paints
Leading Substitution to Ecologically Friendly Paints > Solvent containing Interior Paints 500 are substituted by VOC Emission 450 free Paints Opportunity zone European Interior Paint Market 400 > Europe mandate to drastically 350 reduce solvent content by 2007 300 > Celanese Emulsions pioneered K to
Slide 17: Utilization Profile
Utilization Profile Acetyl Segment Global Capacity Utilization Operating Profit 95% VAM 14% > Demand growth: 3-4% per year Acetic Acid 12% 90% > Market conditions improving Sgmt. OP as % 10% with economic recovery sales 8% > Limited world-scale acetyl 85% capacity additions 6% 80% > Significant amou
Slide 18: Ticona: Technology Enabler In Key Industries
Ticona: Technology Enabler In Key Industries Volumes by end use market Medical 3% 2002 Sales: € 757 million Automotive 53% Other 8% Alternate Celcon®/Hostaform® All Products Fabrication 5% Celanex® Electrical & Industrial 12% Appliances 6% Electronics 7% Consumer 6% Fortron® , Hostaform® (e.g. Telec
Slide 19: The Hot Diesel Trend
The Hot Diesel Trend Challenge 50% 45% > Chemical resistance 40% 40% > High fuel temperatures 33% 29% 30% Requirements 20% > Favorable aging characteristics at higher temperatures 10% Products 0% 1995 2000 2002 2005 > Hostaform®/Celcon® Market share (sales) of diesel powered Light Vehicles in WE > F
Slide 20: Medical Packaging Becomes Functional
Medical Packaging Becomes Functional Asthma inhaler Disposable syringes - Constant elastic force Surgical instruments Insulin-Pen Needle-free devices - Optimized slip / - High stability friction properties Next step: Ticona product properties: Submit data to > Broad regulatory approval physician > H
Slide 21: Ticona Optimization Measures
Ticona Optimization Measures Sales and Administration Expenses > Consolidate sites/ capability per quarter: > Reduce complexity € 5-10 mio. > Enhance customer focus through 2004 > Accelerate Six Sigma Operations Benefits: > Capture productivity gains Starting > Consolidate compounding operations in
Slide 22: Strong Progress in Operational Excellence
Strong Progress in Operational Excellence 2001 2002 2003 Streamlined Forward restructuring organization Six Sigma Operations 2/’01 Lean Sigma Administration 1/’02 Design for Six Sigma Growth 1/’03 Digitization Advanced process control 3/’01 Real-time optimization 4/’02 Manufacturing Execution System
Slide 23: A Solid Basis for Improving Performance
A Solid Basis for Improving Performance Portfolio Strategy implementation > #1 or #2 global supplier in 70% > Focus: of sales = on operational excellence > Acetyls - expansion along the = on technology, cost and value chain performance > Ticona - strong franchises with = on strong cash generation in
Slide 24: Celanese
‘Y Celanese