Celanese Corporation · NYSE:CE
Celanese — Q1 2005 Earnings Presentation
17 slides from Celanese's earnings presentation, May 10, 2005
Slide 1: First Quarter Earnings
First Quarter Earnings Celanese 1Q2005 Earnings NYSE: CE Conference Call/Webcast Tues., May 10, 2005 10 a.m CT David Weidman, CEO C.J. Nelson, CFO
Slide 2: Forward-Looking Statements
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, capital expenditures, financing needs and other information that is not historical informati
Slide 3: Reconciliation of Non-GAAP Measures to U.S. GAAP
Reconciliation of Non-GAAP Measures to U.S. GAAP This presentation reflects four performance measures, net debt, adjusted EBITDA, adjusted net earnings and adjusted basic earnings per share as non-U.S. GAAP measures. The most directly comparable financial measure presented in accordance with U.S. GA
Slide 4: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information Adjusted EBITDA, a measure used by management to measure performance, is defined as earnings (loss) from continuing operations, plus interest expense net of interest income, income taxes and depreciation and amortization, and further adjusted for certain cash an
Slide 5: David Weidman, Chief Executive Officer
David Weidman Chief Executive Officer
Slide 6: Strong Underlying Business Results
Strong Underlying Business Results (in $millions) 1st Qtr 2005 Sales $1,509 up 21% Operating Profit $166 up 219% Adjusted Basic EPS $0.87 Dividends from Equity & Cost Investments $50 Adjusted EBITDA $334 up 61% > Expansion of operating profit and strengthened cash position > Higher pricing on strong
Slide 7: Chemicals Products
Chemicals Products (in $millions) 1st Qtr 05 Sales $1,044 up 28% Segment Earnings(1) $193 up 202% First Quarter: > Significant price increases on robust demand, high industry capacity utilization > Pricing more than offset higher raw material costs Outlook: > Continued strength in the business in 2n
Slide 8: Ticona
Ticona (in $millions) 1st Qtr 05 Sales $239 up 5% Segment Earnings(1) $51 up 13% First Quarter: > Volume growth from continued penetration in new applications > Weakened sales to European automotive sector > Successfully implemented price increases, understated by product mix Outlook: > Expect furth
Slide 9: Acetate/Performance Products Summaries
Acetate/Performance Products Summaries (in $millions) 1st Qtr 05 Sales $196 up 14% Segment Earnings(1) $20 million up 122% Acetate > Strong results on higher volumes, pricing and productivity improvements > China venture expansions moving forward > Restructuring of operations on schedule (in $millio
Slide 10: C. J. Nelson, Executive Vice President and Chief Financial Officer
C. J. Nelson Executive Vice President and Chief Financial Officer
Slide 11: Financial Highlights
Financial Highlights in $ millions (except per share data) 1st Qtr 2005 1st Qtr 2004 Successor Predecessor Net sales 1,509 1,243 Operating Profit 166 52 SG&A (161) (137) Net income (10) 78 Basic EPS (0.08) n.m. Special items Refinancing expenses 102 - Special charges 38 28 Advisor monitoring fee 10
Slide 12: Full Year 2005 Key Modeling Assumptions
Full Year 2005 Key Modeling Assumptions Income Statement Equity – CE Shares ($ millions) • Common stock = 158.5 million outstanding • Depreciation = $240-$260 • Potentially dilutive securities as of Mar. 31: • Special charges = $65-$85 • Includes 1Q cancellation of • 11 million shares - stock option
Slide 13: Significant Contribution from Equity and Cost Investments
Significant Contribution from Equity and Cost Investments $ Millions 50 • 2004 Full Year 14 Dividends = $76 million 40 • 2005 expected to be 30 $90-100 million 1 20 36 6 Equity Earnings 10 Dividends – cost investments 15 15 12 Dividends – equity investments 0 Dividends Other 1st Qtr 05 1st Qtr 05 1s
Slide 14: Capitalization
Capitalization (in $millions) December 31, 2004 March 31, 2005 Cash 838 1,738 Senior Credit Term Loan 624 1,750 Delayed Draw Term Loan - - Floating Rate Term Loan 350 - Total Senior Debt 974 1,750 Senior Sub Notes ($) 1,231 800 Senior Sub Notes (€ - translated at 1.2964 ) 272 169 Assumed Debt 383 36
Slide 15: Debt Amortization and Maturity
Debt Amortization and Maturity As of March 31, 2005 $ in millions Senior Secured Term Loan - $1,652 Senior Subordinated Notes - $969 1,800 Senior Discount Notes - $554 1,600 1,400 1,200 1,000 800 600 400 200 0 * 06 07 08 09 10 11 12 13 14 Th 015 er 05 ft 20 20 20 20 20 20 20 20 20 20 ea 2 ng er ni a
Slide 16: Significant Near-Term Opportunities
Significant Near-Term Opportunities Major Acetate Restructuring Purchasing Savings Opportunities ► Exiting non-strategic filament ► Potential EBITDA improvement business of roughly $100 million ► Consolidating 5 sites into 3 • 70-80% from MRO, Logistics, ► Reducing work force by 35-40% and Capex ► I
Slide 17: Combined Business Outlook
Combined Business Outlook 2nd Quarter > Basic EPS to increase to $0.30 - $0.35 > Reflects absence of $102 million in refinancing expenses and lower special charges Full Year 2005 > Adjusted EPS to increase to $1.79 to $1.87 > Basic EPS to increase to $0.55 to $0.75 > Based on strong first quarter pe