Slide 1: Celanese 3Q 2006 Earnings Conference Call / Webcast
Dave Weidman, President and CEO John J. Gallagher III, Executive Vice President and CFO Celanese 3Q 2006 Earnings Conference Call / Webcast Tuesday, October 31, 2006 9:00 a.m. CT
Slide 2: Forward Looking Statements, Reconciliation and Use of Non-GAAP Measures to U.S. GAAP
Forward Looking Statements, Reconciliation and Use of Non-GAAP Measures to U.S. GAAP
Slide 3: Dave Weidman, President and Chief Executive Officer
Dave Weidman President and Chief Executive Officer
Slide 4: Celanese Corporation Q3 2006 Highlights
Celanese Corporation Q3 2006 Highlights Quarterly net sales increase 10% from prior year Operating profit in Q3 up 111% on strong volumes, higher margins and fewer other charges and adjustments Adjusted EPS in Q3 up 61% to $0.79 Operating EBITDA in Q3 increases 28% to $322 million in $ millions (exc
Slide 5: Integrated Hybrid Business Model Drives Shareholder Value
Integrated Hybrid Business Model Drives Shareholder Value Performance Products Continues to deliver stable earnings and strong cash flow 9 Chemical Products Continued robust demand Profitable growth in Asia Ticona Innovation and market penetration fuel high growth Acetate Products Revitalization eff
Slide 6: John J. Gallagher III, Executive Vice President and Chief Financial Officer
John J. Gallagher III Executive Vice President and Chief Financial Officer
Slide 7: Celanese Corporation Financial Highlights
Celanese Corporation Financial Highlights Based on diluted shares of 171.2 million as of Sept. 30, 2006, and a 25% effective tax rate Based on diluted shares of 171.9 million as of Sept. 30, 2005, and a 24% effective tax rate in $ millions (except EPS) 3rd Qtr 2006 3rd Qtr 2005 Net Sales 1,685 1,526
Slide 8: Third Quarter 2006: Chemical Products
Third Quarter 2006: Strong earnings on continued high utilization across industry Significantly improved operating profit as increases in volume and price outpaced higher raw material costs Impact of Celanese specific opportunities on operating margin Reduced dividends from Saudi cost investment (IB
Slide 9: Third Quarter 2006: Ticona Technical Polymers
Third Quarter 2006: Increased penetration in key customer segments Operating margins expanded on increased volume and reduced spending, offsetting higher raw material and energy costs Product/customer mix slightly affect year over year pricing Healthy demand in Europe Focus on increased growth throu
Slide 10: Acetate Products and Performance Products
Revitalization still on track China venture tow expansion complete, moving forward on flake expansion Performance Products Stable earnings healthy sweetener demand Lower volume driven by timing of sales in the carbonated beverage season; no change in underlying fundamentals Attractive, cash generati
Slide 11: Significant Contributions Continue from Equity and Cost Investments
Significant Contributions Continue from Equity and Cost Investments Q3 2005 Q3 2006 YTD 2005 YTD 2006 Q3 2005 Q3 2006 YTD 2005 YTD 2006 YTD 2006: Cash flow approximates earnings impact FY 2006 guidance: Income and cash impact similar to 2005 Income Statement Cash Flow 21
Slide 12: Capitalization
Capitalization Cash Senior Credit Term Loan Senior Credit Revolver Floating Rate Term Loan Total Senior Debt Senior Sub Notes ($) Senior Sub Notes (*) Other Debt Total Cash Pay Debt Discount Notes Series A Discount Notes Series B Total Debt Shareholders' Equity Total Capitalization Net Debt(Total De
Slide 13: 2006 Business Outlook
2006 Business Outlook Chemical Products Favorable industry dynamics Continued strong global demand Ticona Increasing penetration in key customer segments Improved global demand Positive impact of COC sale continues Acetate Products Improving earnings with revitalization on track On path to targeted
Slide 14: 2006 Guidance
2006 Guidance Adjusted EPS: $2.70 to $2.80 Depreciation/Amortization $275 - $300 million Cash Interest Expense $230 - $250 million Effective Tax Rate 27% Capital Expenditures $200 - $250 million CE Equity 158.6 million shares common stock outstanding 0.6 million stock option grants* 12 million share
Slide 15: Appendix
Appendix
Slide 16: Reg G: Reconciliation of Diluted Adjusted EPS
Reg G: Reconciliation of Diluted Adjusted EPS 31
Slide 17: Reg G: Reconciliation of Net Debt
Reg G: Reconciliation of Net Debt 33
Slide 18: Reg G: Reconciliation of Other Charges and Other Adjustments
Reg G: Reconciliation of Other Charges and Other Adjustments 35
Slide 19: Reg G: Reconciliation of Operating EBITDA
Reg G: Reconciliation of Operating EBITDA 37