Celanese Corporation · NYSE:CE
Celanese — Merger or Acquisition (July 2020)
12 slides from Celanese's merger presentation, Jul 20, 2020
Slide 1: Celanese Unlocks Shareholder Value Through Monetization of Polyplastics Joint Venture
Celanese Unlocks Shareholder Value Through Monetization of Polyplastics Joint Venture Engineered Materials Well - Positioned to Continue Growth Trajectory July 2020
Slide 2: Disclosures: Forward-Looking Statements
Disclosures Forward - Looking Statements This presentation contains "forward - looking statements," which include information concerning the Company's plans, objectives, g oals, strategies, future revenues, synergies, performance, capital expenditures, financing needs and other information that is n
Slide 3: Summary Highlights
1 Base business excludes affiliate earnings 1 Committed to a multi - year value creation strategy in Engineered Materials (EM), which is more diverse, solutions - oriented, and customer - focused. 2 Celanese investment in local Asia capabilities in our base business 1 has driven double - digit annua
Slide 4: Evolution of Engineered Materials
Greater Diversification & Resiliency Regional diversification driven by growth in Asia 1 Greater end market diversification Adj. EBIT increasingly from base business 2 Unparalleled Customer Solutions Breadth of polymers tripled to lead the industry Localized production across more countries Model to
Slide 5: Engineered Materials Growth in Asia
2 Engineered Materials Growth in Asia Investment in local capabilities to drive continued growth EM Base Business Growth in Asia (2010 – 2019) 2019 2010 Joint Venture Led Presence (1960 – 2009) 22% 14% 10% or less Asia Percentage of EM Net Sales EM Asia Net Sales 1 $533 M $152 M ~$100 M or less Net
Slide 6: Polyplastics Background and Performance
• Polyplastics Co., Ltd. (PPC) formed in Japan in 1964 is Celanese’s oldest joint venture (JV) • Established by Celanese (45%) and Daicel Corporation (55%) • Originally established to create a Celanese presence in Asia • Production and marketing capabilities with facilities in Asia Limited Celanese
Slide 7: Transaction to Create Significant Value
Immediate Unlocking of Full Value $1.575 billion in Exchange for Celanese 45% Stake in Polyplastics Monetization at 36x 2019 Polyplastics equity earnings 1 Stronger Engineered Materials Application of EM commercial model on vast majority of adjusted EBIT Enables improved focus on Engineered Material
Slide 8: Accretive Deployment of Proceeds
Gross proceeds of $1.575 billion Post - tax net proceeds of >$1.3 billion Second half close after necessary regulatory approvals and customary closing conditions Phase I Deployment (near - term) Monetization Phase II Deployment (midterm) >$1.3 B ~$0.5 B >$0.8 B Adjusted earnings per share accretion
Slide 9: High-return Capital Allocation Strategy
RETURNS Organic Growth Acquisitions > 12% >20 % Share Repurchases W ACC + Current W ACC Repay Debt 3 - 5% Keep Excess Cash 1 - 2% Disciplined consideration of bolt - on and transformational opportunities Pursue highly synergistic acquisitions with attractive regional, polymer formulation, or applica
Slide 10: Appendix
Appendix
Slide 11: Non-GAAP Definitions
Non - GAAP Definitions Adjusted EBIT is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Co rpo ration, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense and
Slide 12: Reconciliation to U.S. GAAP: Engineered Materials Supplemental Segment Data
Reconciliation to U.S. GAAP 12 Engineered Materials Supplemental Segment Data and Reconciliation of Non - GAAP Measures – Unaudited Source: Non - GAAP Financial Measures – available in the ‘Financial Information’ section of Celanese Investor Relations website. Note: Adjusted EBIT and Adjusted EBIT M