Celanese Corporation · NYSE:CE
Celanese — Investor Day (May 2018)
9 slides from Celanese's investor day presentation, May 1, 2018
Slide 1: Scott Sutton, Chief Operating Officer – Investor Day May 1, 2018
Scott Sutton CHIEF OPERATING OFFICER I N V E S T O R D A Y M A Y 1 , 2 0 1 8
Slide 2: Acetate Tow storyline 2020
I N V E S T O R D A Y 2 0 1 8 2 Acetate Tow storyline 2020 > Blackstone JV was designed to monetize and exit; its abandonment has opened other strategic options > The rate of decline in acetate tow market has moderated post the China reset > Flat earnings projected for Acetate Tow (AT) through 2020
Slide 3: More stable industry dynamics
I N V E S T O R D A Y 2 0 1 8 3 Source: GAMA data, Euromonitor, and CE estimates …and tow industry utilization rates are above 80% More stable industry dynamics 2011 2012 2013 2014 2015 2016 2017 2018F T O W V O L U M E ( k T ) 80% 100% ACETATE TOW UTILIZATION RATEUNCERTAINTIES BEHIND US: > Cigarett
Slide 4: Largest tow partner in China to benefit from move to independence
I N V E S T O R D A Y 2 0 1 8 4 As the largest tow partner in China, Celanese will benefit from move to independence Opportunity to grow China dividend > Likely last major expansion in China’s path to self-sufficiency > Completed in 2018 > CE JVs >70% of China 2006 2008 2010 2012 2014 2016 2018F 202
Slide 5: Impactful innovation to drive differentiation
I N V E S T O R D A Y 2 0 1 8 5 Impactful innovation to drive differentiation Innovation is another avenue for earnings HEAT-NOT-BURN (HNB) > HNB cigarettes utilize unique filter tow, heating tobacco to release a warm aerosol > HNB sticks projected to grow to 120 billion sticks over next four years
Slide 6: Productivity run rate of $40-50 million by 2020
I N V E S T O R D A Y 2 0 1 8 6 Productivity run rate of $40-50 million by 2020 Continue productivity focus ~$10M ~$30M > Overhead > Selling costs > One asset > Raw material optimization > Energy optimization TOTAL STANDARD COST SAVINGS ASSET CLOSURE IN EARLY 2019
Slide 7: Expect consistent earnings
I N V E S T O R D A Y 2 0 1 8 7 Expect consistent earnings More stable industry dynamics Growing Chinese JV dividend Innovation Continued productivity MULTIPLE STRATEGIC OPTIONS STABLE INDUSTRY DYNAMICS >70% JOINT VENTURES 2017 Price/ Volume China JVs Innovation Productivity 2020F $301 $290-300 Stab
Slide 8: Blackstone JV addressed tow concerns and created upside
I N V E S T O R D A Y 2 0 1 8 8 ...addressed concerns about tow and created upside Innovative JV concept with Blackstone Synergies Monetize Reallocate > Enhanced cost competitiveness > Enhanced long-term strategic options > $1.6 billion initial monetization of Acetate Tow > Synergy opportunities of
Slide 9: New strategic options available
I N V E S T O R D A Y 2 0 1 8 9 > Blackstone-like global JV > Creates a different European market participant > Manufacturing joint ventures > Maintain independent business and customer focus ...which could convert future value to cash redeployment today New strategic options available PARTNERSHIPS