Celanese Corporation · NYSE:CE
Celanese — Merger or Acquisition (July 2020)
12 slides from Celanese's merger presentation, July 2020
Slide 1: Celanese Unlocks Shareholder Value Through Monetization of Polyplastics Joint Venture
Celanese Unlocks Shareholder Value Through Monetization of Polyplastics Joint Venture Engineered Materials Well-Positioned to Continue Growth Trajectory July 2020
Slide 2: Disclosures
Disclosures Forward-Looking Statements This presentation contains "forward-looking statements," which include information concerning the Company's plans, objectives, goals, strategies, future revenues, synergies, performance, capital expenditures, financing needs and other information that is not hi
Slide 3: Summary Highlights
Summary Highlights Committed to a multi-year value creation strategy in Engineered Materials (EM), which is more diverse, 1 solutions-oriented, and customer-focused. Celanese investment in local Asia capabilities in our base business 1 has driven double-digit annual sales 2 growth in Asia over the l
Slide 4: Evolution of Engineered Materials
1 Evolution of Engineered Materials Engineered Materials is a more diverse, solutions-oriented, and customer-focused 2010 2019 Regional diversification driven by growth in Asia1 Greater Diversification Greater end market diversification 1/2 auto 1/3 auto & Resiliency Adj. EBIT increasingly from base
Slide 5: Engineered Materials Growth in Asia
2 Engineered Materials Growth in Asia Investment in local capabilities to drive continued growth Joint Venture Led Presence EM Base Business Growth in Asia Future Growth Strategy (1960 – 2009) (2010 – 2019) 2020 - Asia presence established via JVs: Net sales CAGR of 15%, nearly double the US or Euro
Slide 6: Polyplastics Background and Performance
2 Polyplastics Background and Performance Focus over many years to restructure Polyplastics JV to drive improved performance • Polyplastics Co., Ltd. (PPC) formed in Japan in 1964 is Celanese’s oldest joint venture (JV) • Established by Celanese (45%) and Daicel Corporation (55%) • Originally establ
Slide 7: Transaction to Create Significant Value
3 Transaction to Create Significant Value Unlocking passive investment in Polyplastics to redeploy at greater returns $1.575 billion in Exchange for Celanese 45% Stake in Polyplastics Immediate Unlocking of Monetization at 36x 2019 Polyplastics equity earnings1 Full Value Stronger Application of EM
Slide 8: Accretive Deployment of Proceeds
4 Accretive Deployment of Proceeds Full net proceeds of ~$1.3 billion to be deployed to share repurchases or higher return M&A 1 Phase I Deployment Phase II Deployment Monetization 2 (near-term) 3 (midterm) ~$0.5 B >$1.3 B Adjusted earnings per share accretion on ~$0.5 billion in share repurchases G
Slide 9: High-return Capital Allocation Strategy
5 High-return Capital Allocation Strategy We consider all capital allocation opportunities that create outsized shareholder value RETURNS Organic Growth Organic Growth >20% Enhance capabilities to leverage key trends in 5G, mobility, medical & pharma, electric vehicles, and sustainability >12% Inves
Slide 10: Appendix
Appendix
Slide 11: Non-GAAP Definitions
Non-GAAP Definitions Adjusted EBIT is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense and taxe
Slide 12: Reconciliation to U.S. GAAP
Reconciliation to U.S. GAAP Engineered Materials Supplemental Segment Data and Reconciliation of Non-GAAP Measures – Unaudited FY 2010 FY 2019 (In $ millions, except percentages) Operating Profit (Loss) / Operating Margin1 182 16.4% 446 18.7% Other Income (Expense) Attributable to Celanese Corporati