Celanese Corporation · NYSE:CE
Celanese — Investor Day (November 2015)
21 slides from Celanese's investor day presentation, Nov 13, 2015
Slide 1: Investor Day 2015 - Mark Rohr, Chairman & CEO
Mark Rohr CHAIRMAN & CHIEF EXECUTIVE OFFICER I N V E S T O R D A Y N O V E M B E R 1 3 , 2 0 1 5
Slide 2: Unique company with complementary cores
2I N V E S T O R D A Y 2 0 1 5 Unique company with complementary cores ADJUSTED EPS GROWTH CASH RETURNED TO SHAREHOLDERSADJUSTED EBIT EXPANSION FREE CASH FLOW GROWTH >600 bps ~$1.3~20%14% since 2012since 2012 since 2012since 2012CAGR CAGR > Advantaged cost > Global network > Distinct and leveragable
Slide 3: This complementary structure drives tremendous synergy
3I N V E S T O R D A Y 2 0 1 5 This complementary structure drives tremendous synergy > Innovation programs leverage resources across the company > Cross-business projects leverage industry and/or technical knowledge > Broad portfolio shares customer and industry insights > Process innovation across
Slide 4: Starting with common technology & processes
4I N V E S T O R D A Y 2 0 1 5 Starting with common technology & processes ~95% of products are derived from ethylene, carbon monoxide or methanol Formaldehyde Acetic Acid & Anhydride Ethanol Vinyl Acetate Monomer Emulsion Polymers EVA Polymers Engineered Materials Cellulose Derivatives Food Ingredi
Slide 5: Productivity is an example
5I N V E S T O R D A Y 2 0 1 5 Productivity is an example > Raw material flexibility and yield improvement > Energy efficiency and reduction > Asset utilization and reliability 2015 GROSS PRODUCTIVITY ANNUAL NET SAVINGS PRODUCTIVITY PIPELINEADJUSTED EBIT PER EMPLOYEE $50-$100 35% ~7700 million incre
Slide 6: Helping us manage global economic volatility
6I N V E S T O R D A Y 2 0 1 5 …Helping us manage global economic volatility Model provides opportunity to benefit from global trends > Continued growth > Feedstock advantage > Low-cost export base > Celanese driving productivity > Celanese investing in growth > Modest growth > Euro depreciation > C
Slide 7: Business model provides flexibility to manage these headwinds
7I N V E S T O R D A Y 2 0 1 5 Business model provides flexibility to manage these headwinds Like challenges in China Unparalleled choice for product > Superior location and logistics > Only fully integrated global acetyl producer > Ability to respond to trade-flows Increased commercial flexibility
Slide 8: That we capture with our broad polymer portfolio
8I N V E S T O R D A Y 2 0 1 51Kilos per vehicle That we capture with our broad polymer portfolio And leverage favorable trends Global market place presence > Regional translations with auto manufacturers Global assets & resources > Technical centers local to customers in the region Broadest materia
Slide 9: Models extending to drive additional value creation
9I N V E S T O R D A Y 2 0 1 5 Models extending to drive additional value creation Celanese’s value creation models Acetyl Chain Materials Solutions + + #1 OR #2 IN OUR MARKETS LOW-COST OPERATIONS ADVANTAGED TECHNOLOGY HIGHLY INTEGRATED VALUE CHAIN MARKET PLACE PRESENCE GLOBAL ASSETS & RESOURCES BRO
Slide 10: Power of the Acetyl Chain
10I N V E S T O R D A Y 2 0 1 5 Power of the Acetyl Chain Outperformance in all economic conditions COMPLEMENTARY CORESGLOBAL LEADERS LEADING COST POSITIONEXPANDED ADJUSTED EBIT MARGIN LEADING FUNDAMENTALS >400 bps ADVANTAGED TECHNOLOGY INTEGRATED VALUE CHAIN#1 or #2 IN OUR MARKETS since 2012 Unpara
Slide 11: Acetyl Model: Opportunity & Execution
11I N V E S T O R D A Y 2 0 1 5 Acetyl Model: Opportunity & Execution Operating Rates Strategic Purchases Demand Optimization Freight Arbitrage Swaps Model best netback on acetic acid molecule 3 Optimize operating rates across production network 4 Execute 5 Repeat 6 2 Daily competitive intelligence
Slide 12: Power of Materials Solutions
12I N V E S T O R D A Y 2 0 1 5 Power of Materials Solutions Opportunity pipeline drives growth Customer Intimacy Pipeline Execution Landscape Management Active Affiliate Management Accelerated M&A > Opportunity pipeline will drive growth in Engineered Materials and Food Ingredients > Cellulose Deri
Slide 13: Materials Model: Opportunity & Execution
13I N V E S T O R D A Y 2 0 1 5 Model to respond rapidly to customer needs Materials Model: Opportunity & Execution Winona, MN Winona, MN Toronto, ON Auburn Hills, MI Florence, KY CE US identified opportunity 3 Presented solution at customer technical center and accepted Celanese Japan developed fin
Slide 14: Earnings and cash flow growth amid volatile conditions
14I N V E S T O R D A Y 2 0 1 5¹ EPS CAGR calculated using midpoint of 2015 forecasted EPS range Earnings and cash flow growth amid volatile economic conditions Those value models are delivering strong growth FREE CASH FLOW (mm) ADJUSTED EPS GROWTH 2010 2002 2003 2004 2005 2006 2007 2008 2009 2010 2
Slide 15: Strategy for Methanol Investment
15I N V E S T O R D A Y 2 0 1 5 …and drive strong returns on invested capital Lets us invest thoughtfully Strategy for Methanol Investment > Abundant low-cost natural gas in U.S. Gulf Coast > Utilize existing infrastructure > Attractive economics > Reduce methanol pricing volatility Partnership stru
Slide 16: Top quartile ROIC versus peers
16I N V E S T O R D A Y 2 0 1 5Source: Capital IQ and Celanese estimates. Refer to Glossary in CFO presentation for proxy peers Top quartile ROIC versus peers Delivering strong returns on investment 5-YEAR AVERAGE ROIC (2010-2014) 2012 2013 2014 2015F 2012 2013 2014 2015F $4.07 $361 $392 $548 >$600
Slide 17: Predictably returning cash via repurchases
17I N V E S T O R D A Y 2 0 1 51Year-to-date as of September 30, 2015 Continue to reduce share count by ~10% through 2017 Predictably returning cash via repurchases SHARE REPURCHASES (mm) > Deployed $420 million to repurchase 6.6 million shares in Q3 2015 > Reduced share count by 4.3% > Increased re
Slide 18: Dividend yield and payout ratio consistent with peers
18I N V E S T O R D A Y 2 0 1 5 Dividend yield and payout ratio are now consistent with our peers ...and returning cash via dividends INCREASED ANNUAL DIVIDEND TO $1.20/SHARE DIVIDEND PAYOUT RATIO PAGE 21 PAGE 19 21.1% 17.5% 17.1% 17.0% 15.9% 15.6% 13.4% 13.3% 11.1% 10.9% 10.5% 10.0% 8.1% 7.4% 6.6%
Slide 19: Create opportunities for sensible M&A
19I N V E S T O R D A Y 2 0 1 5 Focused, accretive and strategically sound Create opportunities for sensible M&A M&A Criteria Leadership Engagement & Core Partnership Attractive top line and earnings growth Highly synergistic Accretive in the short term Sustains our leadership positions Risk adjuste
Slide 20: Disciplined approach creating value through M&A
20I N V E S T O R D A Y 2 0 1 5 Disciplined approach... Note: Since mid-2014 ...creating value through M&A Screening Due Diligence Integration EVALUATION PROCESS Reject ?? INBOUND OUTBOUND• Banks • Auctions • Bilateral ????? ???? • ?te??? ? ???e??? 5,000 500 250 INITIAL CONTACT Reject ?????e ?? 25 1
Slide 21: Bringing all elements together
21I N V E S T O R D A Y 2 0 1 5 Bringing all elements together Positioned for continued double-digit earnings growth Structural Uniqueness Uniqueness Helps Address Global Challenges Leverage Complementary Cores Stewardship of Cash Generation PAGE 21 PAGE 19 21.1% 17.5% 17.1% 17.0% 15.9% 15.6% 13.4%