Celanese Corporation · NYSE:CE

Celanese — Investor Day (November 2015)

28 slides from Celanese's investor day presentation, Nov 13, 2015

  1. Slide 1: Investor Day November 13, 2015

    Pat Quarles PRESIDENT, ACETYLS & SUPPLY CHAIN 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

  2. Slide 2: Our global integrated manufacturing footprint is safe, reliable and low-cost

    2I N V E S T O R D A Y 2 0 1 5 Our global integrated manufacturing footprint is safe, reliable and low-cost Celanese is an integrated manufacturing company > Providing a safe workplace for our employees and contractors > Serving as a reliable partner for our customers > Being a responsible steward o

  3. Slide 3: Culture drives operational excellence

    3I N V E S T O R D A Y 2 0 1 5Note: Safety data relates to Celanese employees only. 2015 YTD as of October 2015. - 1 On stream reliability includes plant controllable at tier 1 facilities. Culture drives operational excellence AWARDS (2013-15 YTD) > Waste minimization, reuse & recycling award > Ener

  4. Slide 4: A rigorous process with ongoing success

    4I N V E S T O R D A Y 2 0 1 5 …a rigorous process with ongoing success Everyone owns productivity Enterprise Approach > All inclusive company wide approach > Cross functional collaboration Sustainable Productivity Focus > Focus on lasting and sustainable productivity and permanently eliminating cos

  5. Slide 5: Cost savings are visible, tangible & perpetual

    5I N V E S T O R D A Y 2 0 1 51Adjusted for inflation. Excludes energy Reduced spend by >$150mm since 2012 Cost savings are visible, tangible & perpetual Fixed Costs > More efficient utility infrastructure > Footprint rationalization > Optimized logistics assets SG&A > Focused service centers for low

  6. Slide 6: Expect annual net productivity savings of $50mm to $100mm

    6I N V E S T O R D A Y 2 0 1 5 Expect annual net productivity savings of $50mm to $100mm Multi year productivity planning > Raw material flexibility and yield improvement > Energy efficiency and reduction > Asset utilization and reliability > Raw material and maintenance sourcing > S&OP process improv

  7. Slide 7: Outperformance in all economic conditions

    7I N V E S T O R D A Y 2 0 1 5 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 Power of the Acetyl Chain Unparal

  8. Slide 8: Acetyl performance is differential

    8I N V E S T O R D A Y 2 0 1 5 400 to 500 basis point improvement in margin and ~$150mm in base earnings Acetyl performance is differential 12% $534 $469 $390 $375 $383 $352 $352 $374 $395 $478 $564 $611 $662 $631 $560 11% 9% 9% 9% 9% 9% 10% 11% 13% 14% 16% 16% 15% 10% 8%–10% OLD RANGE 12–16% NEW RA

  9. Slide 9: Broad end-market applications provide opportunity for consistent growth

    9I N V E S T O R D A Y 2 0 1 51Net sales exclude inter-segment eliminations and proportional share of affiliates net sales. Broad end-market applications provide opportunity for consistent growth Advantaged foundational chemistry Adjusted EBIT Margin 15% Net Sales¹ 2015F Net Sales¹ 2015F Adjusted EBI

  10. Slide 10: Global leader across the value chain

    10I N V E S T O R D A Y 2 0 1 5 #1 or #2 position in 85% of Acetyl Chain revenue Global leader across the value chain Estimates of market share, 1includes CE JVs ACID #1 #1 #2 VAM ANHYDRIDE1 VAE #1 GLOBAL POSITION GLOBAL POSITION GLOBAL POSITION GLOBAL POSITION

  11. Slide 11: Unmatched choices regionally and vertically

    11I N V E S T O R D A Y 2 0 1 51Asia outside of China Unmatched choices regionally and vertically Only fully integrated global acetyl producer Celanese BP LyondellBasell Wacker Eastman Sipchem Dairen METHANOL ACID VAM EMULSIONS GLOBAL PRESENCE AMERICAS EMEA CHINA AOC1

  12. Slide 12: Results enhanced by differential feedstock options

    12I N V E S T O R D A Y 2 0 1 5Source: Celanese estimates; Based on 2015 Q3 and Q4 forecasted raws and energy for plant gate costs, capacity shown as effective capacity, Celanese Clear Lake based on produced methanol Results enhanced by differential feedstock options Leading cost position based on A

  13. Slide 13: Globally integrated assets

    13I N V E S T O R D A Y 2 0 1 5 Globally integrated assets KEY CELANESE REGIONAL HQ TECHNICAL CENTER Amsterdam, Netherlands Sulzbach, Germany Frankfurt, Germany Tarragona, Spain Singapore Irving, TX Meredosia, IL Edmonton, AB Boucherville, QC Enoree, SC Perstorp, Sweden Geleen, Netherlands Bay City,

  14. Slide 14: Celanese drives value through model, attractive trade flows and execution

    14I N V E S T O R D A Y 2 0 1 5Note: All units in kta and for 2014. 1Cost of acetic acid is weighted average variable landed Europe cost Celanese drives value through model, attractive trade flows and execution ACID AMERICAS EUROPE MIDDLE E AST, TURKEY & AFRICA GREATER CHINA ASIA OUTSIDE CHINA 400ACI

  15. Slide 15: Allows us to outperform the competition

    15I N V E S T O R D A Y 2 0 1 5 …allows us to outperform the competition Thoughtful execution against aggressive goals Completed in record time Lowest cost per ton in recent history Exceptional execution “Looking at recent methanol plant start-ups we remain skeptical that Celanese could get to norma

  16. Slide 16: Enables improved results

    16I N V E S T O R D A Y 2 0 1 5 …enables improved results Increased commercial flexibility > More flexible pricing mechanisms enhance active, real-time management of margins > Global aligned team throughout integrated value chain > Intimate global and regional competitive knowledge > Increased optiona

  17. Slide 17: Power of the Acetyl Chain

    17I N V E S T O R D A Y 2 0 1 5 Power of the Acetyl Chain Differential results in all economic conditions = #1 OR #2 IN OUR MARKETS LOW-COST OPERATIONS ADVANTAGED TECHNOLOGY HIGHLY INTEGRATED VALUE CHAIN DIFFERENTIAL ACTIONS VALUELEADING FUNDAMENTALS PRODUCTIVITY UNPARALLELED CHOICES EXPANDED FLEXIB

  18. Slide 18: Acetyls in over-supply with slower growth, driven by China

    18I N V E S T O R D A Y 2 0 1 5 2012 2013 2014 20152011 20,000 kt 10,000 kt 0 kt 20032002 78% 70% 2004 2005 2006 2007 2008 2009 2010 …driven by China Acetyls in over-supply with slower growth > Capacity additions have outpaced demand > Global demand growth in recent years lower than in the past > De

  19. Slide 19: Regional operating rates have diverged

    19I N V E S T O R D A Y 2 0 1 5Source: Celanese estimates. – 1Rest of World Regional operating rates have diverged Overcapacity in Chinese acetic acid and VAM 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 20112010 2012 2013 2014 2015 20112010 2012 2013 2014 2015 CE ROW1 CE China CE China CE ROW1

  20. Slide 20: All acetic acid producers are not created equal

    20I N V E S T O R D A Y 2 0 1 5 All acetic acid producers are not created equal Location & logistics are critical for acetic acid CELANESE NANJING COMPETITORS ~$230 ~$190 ~$170 ~$150 ZONE ZONE ZONE ZONE China Capacity by Zone Zone 1 Capacity 53%100% FREIGHT TO EUROPE 4 3 2 1 CE

  21. Slide 21: Chinese producer margins are unsustainable

    21I N V E S T O R D A Y 2 0 1 5Source: Celanese estimates; Cash cost = raw materials + energy + plant period + turn around + fixed distribution + SGA + other fixed cost Local producers operate near cash cost in short term, unsustainable long term Chinese producer margins are unsustainable JAN 12 JAN 1

  22. Slide 22: Base earnings ~$150mm higher and expected to grow

    22I N V E S T O R D A Y 2 0 1 5Source: Celanese estimates; Acid margin = acid market price - cash cost Cash cost = raw materials + energy + plant period + turn around + fixed distribution + SGA + other fixed cost Base earnings ~$150mm higher and expected to grow Acetyl performance is differential JAN

  23. Slide 23: Power of the Acetyl Chain: platform for growth

    23I N V E S T O R D A Y 2 0 1 5 Power of the Acetyl Chain Differential model provides platform for growth = + DIFFERENTIAL ACTIONS GROWTHVALUE PRODUCTIVITY UNPARALLELED CHOICES EXPANDED FLEXIBILITY EXCEPTIONAL EXECUTION >$50mm/yr >40 Options >100 kt Acid1,300 kt Methanol ~$150>100 kt Acid MILLION GR

  24. Slide 24: Opportunities to grow our core and extend our value chain

    24I N V E S T O R D A Y 2 0 1 5 Opportunities to grow our core and extend our value chain Expanding our competitive advantages Foundation Chemistry > Acetic acid debottlenecks – Clear Lake > VAM debottleneck – Clear Lake > Greenfield VAE – Singapore Raw Materials > Methanol investment opportunities i

  25. Slide 25: Expanding Clear Lake acetic acid

    25I N V E S T O R D A Y 2 0 1 5 The largest, most efficient and low cost acetic acid plant Expanding Clear Lake acetic acid > Successfully implemented low capital capacity expansion at Clear Lake in 2012 > Additional supply of USGC acetic acid driven by improved reliability, process improvements and

  26. Slide 26: Expanding Clear Lake VAM

    26I N V E S T O R D A Y 2 0 1 5 Lowest cost VAM expansion in cost-advantaged US Expanding Clear Lake VAM > 150 kta additional capacity from expansion and improvement options > Lowest capital cost for VAM expansion > Lowest cash cost addition to the VAM market > Cost advantaged acetic acid integrated

  27. Slide 27: Expanding VAE into Southeast Asia

    27I N V E S T O R D A Y 2 0 1 5 Extending value chain in high-growth region Expanding VAE into Southeast Asia > Increasing VAE capacity in Asia to support growth > High value growth segments – Southeast Asia: paints and coatings – China: paints, coatings, water proofing, redispersable powders > Opera

  28. Slide 28: Expect double-digit earnings growth through 2018

    28I N V E S T O R D A Y 2 0 1 5 Expect double-digit earnings growth through 2018 Power of the Acetyl Chain LEADING FUNDAMENTALS Unparalleled Choices Exceptional Execution Expanded Flexibility Growth Opportunities D I F F E R E N T I A L A C T I O N S $675–$725 2015F 2018FProductivityGrowth Different

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