Celanese Corporation · NYSE:CE
Celanese — Investor Day (March 2021)
20 slides from Celanese's investor day presentation, Mar 25, 2021
Slide 1: Acetate Tow / Financial Excellence
Acetate Tow Lori Ryerkerk Financial Excellence Scott Richardson
Slide 2: Disciplined focus to drive shareholder value
Disciplined focus to drive shareholder value 2 1 2 LEVERAGE OUR BUSINESSES TO DRIVE STRONG CASH GENERATION AND USE THAT CASH FOR SHAREHOLDER VALUE ACCRETION 3 INVEST TIME AND EFFORT TO EVOLVE OUR LEADING BUSINESS FRANCHISES FOCUS ON DELIVERING DOUBLE-DIGIT PER YEAR ADJUSTED EARNINGS PER SHARE GROWTH
Slide 3: Leading positions and business model evolution have driven performance uplift
Leading positions and business model evolution have driven performance uplift Sustained track record of earnings growth $962 $1,056 $1,268 $6.02 $1,236 $1,852 $11.00-11.50 $7.64$7.51 $11.00 $6.61 $5.67 $4.50 $4.07 $1,131 $1,476 $1,356 $1,278 $9.53 Adjusted EBIT (in millions) Adjusted Earnings Per Sh
Slide 4: Consistent performance translates to shareholder value
Consistent performance translates to shareholder value Compelling relative performance and valuation continue to drive superior returns Total Shareholder Return (February 28, 2018 – February 28, 2021) Free Cash Flow Yield (Avg. 2018 – 2020) Return on Invested Capital (Avg. 2018 – 2020) Shareholder Y
Slide 5: Two-thirds of historical shareholder value generated by controllable actions
Two-thirds of historical shareholder value generated by controllable actions Reliably strong total shareholder returns Driven in an average year over this period by… ...positive TSR in years with average annual TSR1 of Over the last decade, CE has delivered… Multiple Expansion Earnings Growth Share
Slide 6: Foundational level of returns from dividends and share repurchases
Foundational level of returns from dividends and share repurchases Dividends and Share Repurchases $65 $88 $247 $394 $594 $701 $741 $1,097 $1,300 $943 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 >$6 billion returned over the last decade and growing shareholder yield 0.6% 1.3% 3.2% 4.3% 6.2% 7.
Slide 7: Complementary pillars focus the organization on controllable actions
Complementary pillars focus the organization on controllable actions Key pillars in place to lift earnings profile Pipeline model evolution Scaling our models Expanded optionality Productivity-based investments Incremental, capital-efficient expansions Production & supply chain optimization Product
Slide 8: Earnings growth begins with productivity culture
Earnings growth begins with productivity culture 2015 2016 2017 2018 2019 2020 Historical Productivity (in millions) $235 $165 $145 $125 $168 $214 ~$150 M Average 2020 Productivity Business Enterprise Manufacturing Procurement Elevated and highly sustainable productivity in 2020 8
Slide 9: Productivity remains core component of organic investment
Productivity remains core component of organic investment Clear Lake Acetic Acid Expansion European Compounding Center of Excellence End to End Supply Chain Transformation (Wave 1) Acetyl Chain • Low-cost natural gas feedstock • Raw material & catalyst usage gains • Fixed cost scale ROCE 25%+ Busine
Slide 10: Annual productivity is comprised of hundreds of individual projects
Annual productivity is comprised of hundreds of individual projects Example of end to end supply chain transformation Multiple Waves Three BenefitsHundreds of Drivers11 Project Workstreams (Wave 1) Wave 1 Wave 2 Advanced Statistical Forecasting Supply Network Planning Production Schedule Optimizatio
Slide 11: Revitalizing a deep organic investment pipeline to drive future returns
Revitalizing a deep organic investment pipeline to drive future returns Organic investments represent highest return opportunities 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021F 2022F 2023F 5% 6% 10% 9% 5%5% 5% 6%6% 2020 CAPEXHistorical CAPEX Cost Reduction Maintenance of Business EHS1 Revenue G
Slide 12: Highly disciplined capital allocation strategy
Highly disciplined capital allocation strategy ROIC (Avg. 2018-2020) CE Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 19.6% Unwavering discipline drives top tier return on capital 12Based on FactSet and internal estimates
Slide 13: Business plans to yield high-quality earnings
Business plans to yield high-quality earnings ENGINEERED MATERIALS • Project pipeline and incremental investments • >85% adjusted EBIT from base business • Upside from M&A potential • Leading network optionality and incremental expansion • Earnings profile on normalized industry dynamics • Upside fr
Slide 14: Excess cash generation between 2021 and 2023 for further deployment
Excess cash generation between 2021 and 2023 for further deployment Cumulative Operating Cash Flow (2021 - 2023) (in billions) Uses of Operating Cash Flow (2021 - 2023) (in billions) 2021F 2022F 2023F >$1.5-2.5 excess cash generation for share repurchases and M&A CAPEX ~$1.5 DIVIDENDS ~$1.0 Business
Slide 15: Flexible, diversified balance sheet enables growth strategy
Flexible, diversified balance sheet enables growth strategy Ability to access multiple debt markets quickly and efficiently $0 $1000 2021 2022 2023 20241 2025 2026 2027 € Bond $ Bond 1Prepayable $1.25 billion revolver matures in 2024. Zero balance as of December 31, 2020. Debt / EBITDA 2011 2012 201
Slide 16: Additional firepower on the balance sheet
Additional firepower on the balance sheet Central Nervous System DisordersOphthalmology Current Excess Cash Levels Cash Generation (2021-2023) Balance Sheet Capacity (through 2023) Excess Cash Balance1 Operating Cash Flow Dividends Capital Expenditures Additional Debt Capacity2 Firepower available t
Slide 17: Sustaining double-digit growth in adjusted earnings per share
Sustaining double-digit growth in adjusted earnings per share… Winning in key end markets Transforming our productivity Driving greater sustainability Enhancing our capital deployment $7.64 $13.00-14.00 2020 2021F Engineered Materials Acetyl Chain Acetate Tow 2023F Double- digit CAGR Adjusted Earnin
Slide 18: Slide 18
Slide 19: Multiplying our momentum
MULTIPLYING) 7 OUR MOMENTUM
Slide 20: Glossary
Glossary 1Or operating profit if adjusted earnings metric not provided 2Or GAAP income taxes if adjusted income taxes not provided 20 For Celanese Non-GAAP measures, please refer to the Non-US GAAP Financial Measures and Supplemental Information documents under Financial Information/Non-GAAP Financi