Slide 1: Celanese 2Q 2009 Earnings Conference Call / Webcast
Dave Weidman, Chairman and CEO Steven Sterin, Senior Vice President and CFO Celanese 2Q 2009 Earnings Conference Call / Webcast Tuesday, July 28, 2009 10:00 a.m. ET
Slide 2: Forward Looking Statements, Reconciliation and Use of Non-GAAP Measures
Forward Looking Statements, Reconciliation and Use of Non- GAAP Measures to U.S. GAAP 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, capita
Slide 3: Dave Weidman, Chairman and Chief Executive Officer
Dave Weidman Chairman and Chief Executive Officer
Slide 4: Celanese Corporation 2Q 2009 highlights
Celanese Corporation 2Q 2009 highlights $ in millions (except EPS) 2nd Qtr 2009 2nd Qtr 2008 Net Sales $1,244 $1,868 Operating Profit/(Loss) $89 $207 Adjusted EPS $0.53 $1.20 Operating EBITDA $243 $406 Second Quarter 2009: Recent strategic activities further optimizes portfolio earnings Integrated p
Slide 5: Recent strategic actions create shareholder value
Economic Recovery Earnings Power Expansion Recent strategic actions create shareholder value Balanced footprint in key regions Recovering conditions in key end-use industries Attractive balance sheet with strong cash generation Geographic Demand Capital Structure: Completed the sale of PVOH business
Slide 6: Steven Sterin, Senior Vice President and CFO
Steven Sterin Senior Vice President and CFO
Slide 7: Consumer Specialties
Second Quarter 2009: Strong performance driven by higher pricing and China ventures growth for Acetate products offset modest volume decline Operating EBITDA improvement due to higher pricing, and lower fixed spending and energy costs Dividends, primarily from China ventures, up 15% to $53 million C
Slide 8: Advanced Engineered Materials
$ in millions 2nd Qtr 2009 2nd Qtr 2008 Net Sales $184 $300 Operating EBITDA $28 $68 Advanced Engineered Materials Second Quarter 2009: Sustained pricing and margins with lower raw material, energy, and fixed costs Volume decrease driven by automotive production in US/EU and other consumer and durab
Slide 9: Industrial Specialties
Second Quarter 2009: Growth in Asia offset by softer demand of PVOH and effect of the AT Plastics force majeure Lower raw material and energy costs, along with the benefits of fixed spending reductions, more than offset lower pricing Industrial Specialties $ in millions 2nd Qtr 2009 2nd Qtr 2008 Net
Slide 10: Acetyl Intermediates
Acetyl Intermediates $ in millions 2nd Qtr 2009 2nd Qtr 2008 Net Sales $622 $1,067 Operating EBITDA $76 $227 Second Quarter 2009: Decrease in net sales due to volume declines and lower industry pricing Lower pricing on lower industry utilization rates and lower raw material costs Lower raw material,
Slide 11: 2Q 2009: Earnings contribution from affiliates decreased
2Q 2009: Earnings contribution decreased to $64 million from $92 million on lower dividends from cost affiliates and lower earnings from AEM equity affiliates Higher dividends from China Acetate ventures offset by lower Ibn Sina dividends Income Statement Affiliate Performance Cash Flows 1Equity ear
Slide 12: Solid cash generation: Adjusted Free Cash Flow
Solid cash generation Adjusted Free Cash Flow Adjusted Free Cash Flow Adjusted Free Cash Flow $ in millions Six Months 2009 Six Months 2008 Net cash provided by operating activities $299 $346 Adjustments to operating cash for discontinued operations ($1) ($5) Net cash provided by operating activitie
Slide 13: Celanese capital structure
Celanese capital structure Term Loan - $2.8 billion Other Debt Obligations - $703 million Cash - $1,145 million Net Debt - $2.3 billion Revolver - $600 million Cost Stability Flexibility Structure Characteristics Primary Components Recent revolver amendment cost less than $3 million; provides additi
Slide 14: Appendix
® Celanese Appendix
Slide 15: 2Q 2009 Other Charges and Other Adjustments by Segment
2Q 2009 Other Charges and Other Adjustments by Segment in millions AEM CS IS AI Other Total Employee termination benefits 3 3 1 - - (2) 5 Plant/office closures - - - - - - - - - - - - Ticona Kelsterbach plant relocation 3 - - - - - - - - 3 Clear Lake insurance recoveries - - - - - - - - - - - - Plum
Slide 16: Reg G: Reconciliation of Adjusted EPS
Reg G: Reconciliation of Adjusted EPS (in $ millions, except per share data) 2009 2008 2009 2008 Earnings (loss) from continuing operations before tax 122 247 106 465 Non-GAAP adjustments Other charges and other adjustments 1 (3) 24 30 46 Adjusted Earnings (loss) from continuing operations before ta
Slide 17: Reg G: Reconciliation of Net Debt
Reg G: Reconciliation of Net Debt June 30, December 31, (in $ millions) 2009 2008 Short-term borrowings and current installments of long-term debt - third party and affiliates 224 233 Long-term debt 3,268 3,300 Total debt 3,492 3,533 Less: Cash and cash equivalents 1,145 676 Net Debt 2,347 2,857
Slide 18: Reg G: Other Charges and Other Adjustments
Reg G: Other Charges and Other Adjustments Other Charges: (in $ millions) 2009 2008 2009 2008 Employee termination benefits 5 4 29 11 Plant/office closures - - - - - - 7 Ticona Kelsterbach plant relocation 3 3 6 5 Clear Lake insurance recoveries - - - - (6) - - Plumbing actions (2) - - (3) - - Asset
Slide 19: Reg G: Reconciliation of Operating EBITDA
Reg G: Reconciliation of Operating EBITDA Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA - a Non-U.S. GAAP Measure (in $ millions) 2009 2008 2009 2008 Net Sales Advanced Engineered Materials 184 300 349 594 Consumer Specialties 280 292 546 574 Industrial Specialties 2
Slide 20: 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 (in $ millions) 2009 2008 2009 2008 Net Sales Ticona Affiliates 1 267 364 439 717 Infraserv 2 487 592 997 1,140 Total 754 956 1,436 1,857 Operating Profit