celanese 2007_investor_day_-_complete
TRANSCRIPT
Celanese 2007 Investor DayDecember 11, 2007St. Regis Hotel, New York
Mark OberleVice President, Investor Relations and Public Affairs
Introduction/Agenda
3
Agenda
7:30 a.m. Registration & Continental Breakfast
8:30 a.m. Introduction/AgendaMark Oberle, Vice President, Investor Relations and Public Affairs
8:35 a.m. Pursue. Premier.David Weidman, Chairman & CEO
9:00 a.m. Advanced Engineered MaterialsSandra Beach Lin, Executive Vice President and President, Ticona
9:25 a.m. Consumer and Industrial SpecialtiesDoug Madden, President, Acetate, AT Plastics and Emulsions & PVOH
9:50 a.m. Morning Break
10:00 a.m. Acetyl IntermediatesJohn J. Gallagher III, Executive Vice President and President, Acetyls and Celanese Asia
10:25 a.m. Global Operational ExcellenceJim Alder, Senior Vice President, Operations & Technical
10:50 a.m. Value CreationSteven Sterin, Senior Vice President and Chief Financial Officer
11:15 a.m. Closing Comments & Final Q&ADavid Weidman, Chairman & CEO
12:00 p.m. Luncheon
Celanese Corporation 2007 Investor Day
4
Forward Looking Statements, Reconciliation and Use of Non-GAAP Measures to U.S. GAAP 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 information. When used in this presentation, the words “outlook,” “forecast,” “estimates,” “expects,”“anticipates,” “projects,” “plans,” “intends,” “believes,” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the company will realize these expectations or that these beliefs will prove correct. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements contained in this release. Numerous factors, many of which are beyond the company’s control, could cause actual results to differ materially from those expressed as forward-looking statements. Certain of these risk factors are discussed in the company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.
This presentation reflects four performance measures, operating EBITDA, adjusted earnings per share, net debt and adjusted free cash flow as non-U.S. GAAP measures. The most directly comparable financial measure presented in accordance with U.S. GAAP in our consolidated financial statements for operating EBITDA is operating profit; for adjusted earnings per share is earnings per common share-diluted; for net debt is total debt; and for adjusted free cash flow is cash flow from operations.
►Operating EBITDA, a measure used by management to measure performance, is defined as operating profit from continuing operations, plus equity in net earnings from affiliates, other income and depreciation and amortization, and further adjusted for other charges and adjustments. We provide guidance on operating EBITDA and are unable to reconcile forecasted operating EBITDA to a GAAP financial measure because a forecast of other charges and other adjustments is not practical. Our management believes operating EBITDA is useful to investors because it is one of the primary measures our management uses for its planning and budgeting processes and to monitor and evaluate financial and operating results. Operating EBITDA is not a recognized term under U.S. GAAP and does not purport to be an alternative to operating profit as a measure of operating performance or to cash flow from operations as a measure of liquidity. Because not all companies use identical calculations, this presentation of operating EBITDA may not be comparable to other similarly titled measures of other companies. Additionally, operating EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements nor does it represent the amount used in our debt covenants.
►Adjusted earnings per share is a measure used by management to measure performance. It is defined as net earnings (loss) available to common shareholders plus preferred dividends, adjusted for other charges and adjustments, and divided by the number of basic common shares, diluted preferred shares, and options valued using the treasury method. We provide guidance on an adjusted earnings per share basis and are unable to reconcile forecasted adjusted earnings per share to a GAAP financial measure because a forecast of other charges and other adjustments is not practical. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding various financial and business trends relating to our financial condition and results of operations, and that when U.S. GAAP information is viewed in conjunction with non-U.S. GAAP information, investors are provided with a more meaningful understanding of our ongoing operating performance. This non-U.S. GAAP information is not intended to be considered in isolation or as a substitute for U.S. GAAP financial information.
►Net debt is defined as total debt less cash and cash equivalents. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding changes to the company’s capital structure. Our management and credit analysts use net debt to evaluate the company's capital structure and assess credit quality. This non-U.S. GAAP information is not intended to be considered in isolation or as a substitute for U.S. GAAP financial information.
►Adjusted free cash flow is defined as cash flow from operations less capital expenditures, other productive asset purchases, operating cash from discontinued operations and certain other charges. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding changes to the company’s cash flow. Our management and credit analysts use adjusted free cash flow to evaluate the company’s liquidity and assess credit quality. This non-U.S. GAAP
David N. WeidmanChairman and CEO
Pursue. Premier.
6
Who is Celanese?
Leading Global Integrated Producer
of Chemicals and Advanced Materials
ExecutionDemonstrated track record
of delivering results
StrategyClear focus on growth and
value creation
CultureStrong performance
built on shared principles and
objectives
Superior Value Creation► Industry Leader
● Geographically balanced global positions
● Diversified end market exposure
► Strong Cash Generation
► Significant Growth Capability
● Track record of execution
● Clearly defined opportunities
7
A leading global integrated producer
1 Represents 2007 estimated third party net sales
Celanese
2007 Revenue1: $6.5B2007 Op. EBITDA Margin (est.): ~20%
Acetyl IntermediatesConsumer and Industrial Specialties
Advanced Engineered Materials
► Leading global producer of engineered polymers
► Strategic affiliates in Asia
► Leading global producer of cellulose acetate products
► Leading global producer of vinyl emulsion products
► Leading global integrated producer of acetyl products
► Significant presence in all three major regions
2007 Revenue1: $3.0 B2007 Op. EBITDA Margin (est.):~25%
2007 Revenue1: $2.5 B2007 Op. EBITDA Margin (est.):~15%
2007 Revenue1: $1.0 B2007 Op. EBITDA Margin (est.):~25%
8
An attractive intermediate and specialty business model
Commodity Chemicals
Intermediate ProductsOil & Gas Consumer
Products► Motorola► Toyota► Sherwin-
Williams► Siemens
► Dow*► Lyondell► Methanex
► Rohm & Haas*► ICI*
Specialty Products
► Dow* ► Eastman*► PPG*► FMC*
* Celanese internal peer group
► Exxon► BP► Shell
Celanese
2001 2007Celanese
9
28% 44% 28%
Geographically balanced global positions and diversified end market exposure
Notes:End market breakdown based on 2007 estimated gross salesGeographic breakdown based on 2007 estimated gross sales to external customers by destination
Other10%
Construction7%
Paints & Coatings15%
Automotive9%
Consumer & MedicalApplications11%
Filter Media16%
Consumer & Industrial
Adhesives4%
Textiles6%
Food & Beverage5%
Chemical Additives
5%Paper &
Packaging8%
Performance Industrial Applications4%
10
Integrated businesses aligned to accelerate growth
Acetyl Intermediates (AI)
Formaldehyde
Differentiated Intermediates Specialty ProductsBuilding Block
Raw Materials
Advanced Engineered Materials
(AEM)
Industrial Specialties
(IS)
Consumer Specialties
(CS)
Ticona Engineering
Polymers
Emulsions
Acetate
AT Plastics
Nutrinova
PVOH
Affiliates
Acetic Acid
Anhydride and esters
VAM
11
Strong performance in an uncertain business environment
► Execution of growth objectives
► Strong acetyl environment
► Delivering on Operational Excellence objectives
► Mitigating raw material volatility
► Continued strength in Europe and Asia
$1,240 - $1,270$3.10 - $3.20Previous
$1,285 - $1,295$3.26 - $3.31Current
Operating EBITDA ($MM)
Adjusted EPS
2007 Updated Guidance
$1,280 - $1,350$3.35 - $3.65
Operating EBITDA ($MM)
Adjusted EPS
2008 Initial Outlook
► Deliver on growth objectives
► Continue to offset inflation through Operational Excellence
► Volatile raw material environment expected to continue
Increasing guidance and expecting strong 2008 earnings growth
12
Since 2000, Celanese has executed against a simple strategic foundation
Divest non-core assets and revitalize underperforming
businesses
Aggressively align with our customers
and their markets to capture growth
Participate in businesses where we have a sustainable competitive
advantage
Leverage and build on advantaged positions that
optimize our portfolio
FOCUS
GROWTH
REDEPLOYMENT INVESTMENTCelaneseStrategic
Pillars
13
11%10%
11% 11%
17%
19%16%15% 15%
17%
19%20%
19%
16%
20%
5%
10%
15%
20%
25%
2000 2001 2002 2003 2004 2005 2006 2007EAs Reported Pro Forma for Current Portfolio
Operating EBITDA Margin
Today’s portfolio: more resilient and less volatile
► Current portfolio provides overall higher level of earnings
► Historic view with today’s portfolio reflects significantly less volatility
Current portfolio range: 15% - 20%
Historic portfolio range: 10% - 20%
► One-third of portfolio is new to the company since 2000
► Growth objectives will continue to bolster portfolio
14
Operating EBITDA1
Today’s portfolio: higher growth, more specialty
► Strategic growth plans continue to accelerate earnings of specialty businesses● Essentially all growth has come
from specialty businesses● Two-thirds of 2010 Growth
Objectives expected from specialty businesses
► Resulting in:● Higher growth rates● Increased overall earnings
power of the portfolio● Reduced volatility
-
200
400
600
800
1,000
1,200
1,400
2005 2007E
12005 and 2007E Operating EBITDA excludes Other Activities of ($122) and ~($100) respectively for the periods presented
62%
38%
~55%
~45%
Acetyl IntermediatesConsumer and Industrial SpecialtiesAdvanced Engineered Materials
$ in
mill
ions
15
$300-$350 million EBITDA Growth$350-$400 million EBITDA Growth
Operational ExcellenceInnovation
2010 Growth Objectives are aligned with the strategic pillars
Celanese 2010 Objective:
Increasing 2010 Growth Objectives by $50 million to $350 - $400 million
Balance SheetOrganicRevitalizationAsia
►$140 million in estimated cost improvements
►Significant improvement in energy efficiency
►AEM: 9% volume growth
►Growth in ‘green’ applications
►~$200 million debt pay down
►Debt refinancing to near-investment grade
►$400 million share repurchase
►AI: sustained growth and high industry utilization
►AEM: increased lbs. per auto
►APL acquisition
● Acquired EBITDA
● Realizing synergies
►Announced plans for Industrial Specialties
►Nanjing complex● Launched
acetic acid and emulsions units
● 4 units under construction
● Announced compounding unit
►AEM: direct to China
►CS: continued growth of Acetate venture relationships
Exceeding initial expectations
16
Committed to delivering value creation
$350 – $400 million increased EBITDA profile plus EPS potential by 2010
X
X
X
X
Operational Excellence
X
Balance Sheet
X
X
Organic
>$100MMXAcetyl Intermediates
X
Revitalization
X
X
Asia
>$100MMXConsumer and Industrial Specialties
X
Innovation
Incremental EPS
Celanese Corporate
>$100MMAdvanced Engineered Materials
EBITDA ImpactGroup
Primary Growth Focus
Ope
ratin
g EB
ITD
AEP
S
17
0
200
400
2007 2008 2009 2010
Operating EBITDA Growth Objectives
On track and clear path forward to accelerate 2010 Growth Objectives
► AEM: volume growth > 2X GDP through further penetration
► CIS: Acetate continues execution on revitalization strategy; Emulsions/PVOH revitalization commences
► AI: Nanjing acetic acid plant startup leads integrated complex
Acetyl IntermediatesConsumer and Industrial SpecialtiesAdvanced Engineered Materials
$ in
mill
ions
18
Asia: enhancing Celanese’s geographic lead
Note: Revenue breakdown based on 2007 estimated net sales1 Earnings breakdown based on 2007 estimated Operating Profit
Approximately 50% of earnings from the fastest growing region
2007E Regional Split
Asia1
~33%
Asia28%
Revenue
Earnings
2010E Regional Split
Asia~50%
Asia~35%
Revenue
Earnings
19
Asia strategy: high-return growth
► Total investment: $300 -$350 million – over 80% complete
► Total revenue: $600 - $800 million when sold out by 2010
► Incremental EBITDA: $120 -$150 million by 2010
ROIC = 25 – 30%
Investment Dynamics
EmulsionsComplex
Administration &Maintenance
Utilities /Tank Farm
Compounding
Acetic AcidUnit
Acetic AnhydrideUnit
Vinyl AcetateMonomer Unit
Warehouse GUR®
UnitCelstran®
Unit Flare
Celanese Nanjing Integrated Complex
20
Operational Excellence: offset inflation and drive sustainability objectives
2010 Sustainability Goals
0 20 40 60 80% Reduction versus 2005
2007 progress
$1 billion / year overall productivityFixed Cost Reduction Above Inflation
0
600
2001 2002 2003 2004 2005 2006 2007E
$ m
illio
n pe
r yea
r
Cumulative inflation Injury rate
Greenhouse gases
Air emissions
Waste
Energy
Fixed Cost Reduction
21
Enterprise Value2Cumulative Adjusted Free Cash Flow
Results have led to significant value creation
0
500
1,000
1,500
2,000
2,500
2000 2001 2002 2003 2004 2005 2006 2007E0
2,000
4,000
6,000
8,000
10,000
YE 2000 IPO Current
$ in
mill
ions
$ in
mill
ions
1 Adjusted free cash flow calculated as cash flow from operations less capital expenditures less other productive asset purchases less operating cash from discontinued operations plus certain other charges 2 Enterprise value represents market capitalization (Current - as of December 7, 2007) plus net debt and minority interest
1Adjusted free cash flow Cumulative Net debt Equity
22
Ret
urn
on C
apita
l Dep
loye
d/Va
lue
Cre
atio
n
Low HighLow
High
Current balance sheet strategy for cash deployment
► Dividend
► Debt repayment
► Hold cash
Returning Cash to Shareholders
Difficulty of Realizing Value/Skills or Competencies Required
Return on Capital Deployed/Value Creation
Difficulty of Realizing Value/Skills or Competencies Required► Asset expansion – low
growth area
► Share repurchase
Returning Cost of Capital
► Cost reduction & revitalization projects
► Asset expansion – high growth area
► Core/bolt-on acquisitions
Significant Value Creation
23
14%
Low HighLow
High
Bias for growth and high-return projects
► Dividend
► Debt repayment
► Hold cash
Returning Cash to Shareholders
► Asset expansion – low growth area
► Share repurchase
Returning Cost of Capital
► Cost reduction & revitalization projects
► Asset expansion – high growth area
► Core/bolt-on acquisitions
Significant Value Creation
~75% of Capital
Deployed Since 2005
Ret
urn
on C
apita
l Dep
loye
d/Va
lue
Cre
atio
n
Difficulty of Realizing Value/Skills or Competencies Required
Celanese core values: our DNA
24
► …a precondition…► …highest standards…
► …attract, develop and retain…► …continuously learn…
► …think globally…► …create growth opportunities…
► …sense of urgency…► …performance driven…
25
Expectations from today’s meeting
► Portfolio is stronger, more resilient
► It’s the model – not the molecule
► Ahead of expectations and growth objectives
► More earnings growth opportunities identified
► Celanese culture: enabler
Sandra Beach LinExecutive Vice President and President, Ticona
Advanced Engineered Materials
27
► > 2X GDP volume growth► Comprehensive portfolio of high-performance engineering polymers► Innovation in automotive and non-automotive applications drives earnings growth► China expansion is platform for further penetration into end-use applications
Advanced Engineered Materials: delivering performance driven solutions
Celanese2007 Revenue1: $6.5 B2007 Op. EBITDA Margin (est.): ~20%
Acetyl IntermediatesConsumer and Industrial Specialties
Advanced Engineered Materials
2007 Revenue1: $1.0 B2007 Op. EBITDA Margin (est.): ~25%
Ticona
1Represents 2007 estimated third party net sales2Equity affiliates total revenue not included in AEM results
Polyplastics Ownership 45%
Korea Engineering Plastics
Ownership 50%
Fortron Industries Ownership 50%
2007E Total Affiliate Revenue2 $1.3 B
28
Well positioned for continued growth
► Premier FranchiseDifferentiated business model
Sustained performance
► Growth through Innovation and TechnologyCapitalize on Megatrends
Asia expansion
29
Providing valuable solutions to extreme requirements
Precise applications in complex
environments
Extreme Requirements
Excellent Products
Collaborative engineering right people – right place
– right time
ExtraordinaryEngineering
AEM “Sweet Spot”
► Intensive Engineering ► Highly Specification-
Driven Functional Parts► Leading-Edge
Technical, Market and Application Expertise
Highly engineered polymers –high performance portfolio
30
Excellent Products: value of technology and performance is realized in price
$1/ kg
$100 / kg$10 / kg$3 / kg
Price for Performance
95%
5%
Standard Polymers
High-Performance Polymers (HPP)Engineering Thermoplastics (ETP)
ABS, SAN, ASA: 3%
PE = 31% PP = 21%
PET = 7%
PU = 6%
PVC = 17% PS, EPS = 8%
others = 2%
Range of Products$1/kg
$100/kg$10/kg$3/kg
Pric
e R
ange
Perf
orm
ance
Ran
ges
31
●
●
●
●
●
●
Chemical Resistance
●
●
●
●
●
Medical Grade
●
●
●
Abrasion Resistance
●
●
●
●
●
●
Dielectric Strength
●
●
●
●
FunctionalAesthetics
●
●
●
●
Extreme Temperature
High performance product portfolio with attributes that customers require
Fortron®(Polyphenylensulfide)
Celstran®(Long fiber reinforced thermoplastics)
Vectra®
(Liquid Crystal Polymer)
Celanex®(Polyester engineering resins)
GUR®(Ultra-high molecular weight PE)
Hostaform®/POM(Polyacetals)
Product
32
Extreme Temperature
Bulk polymersPP, PE, PVC
Crit
ical
Par
t Spe
cific
atio
n
Bulk polymersPET, PEN
Riteflex®Hostaform®
GUR®
Celanex Fortron®, Vectra®,Celstran®
Ticona polymers
(40)°F extreme cold 600°F extreme heatContinuous Use Temperature
Range of Temperature Requirements
33
Ticona POM: Only polymer that meets ALL requirements
No Industry Demands More Than Medical Systems
Competitive Products
++-+FDA drug master file
-
----
+
PP PETHigh Temp. PA
Ticona POMRequirements
+-+Dimensional stability
==+Steam sterilization
==++Value-in-use
-++Wear resistance
=++Chemical resistance
+=+FDA compliance
Extreme Requirements: precise applications in complex environments
34
End-use Customer
Extraordinary Engineering: right people – right place – right time
Engineered Polymers Industry Supply Chain
Raw Material Supplier
AEM Solutions – processing expertise and material performance
Material and Performance Specifications
● Monomer & polymer producer
● Compounder
AEM
● Injectionmolding
● Extrusion
Converter
● Components● Finished
goods
Manufacturer
35
OEM Specification
Opportunity Generation
TestingPart Design
Part Validation
Prototype
Intellectual capital enables performance-driven solutions
Modeling & Simulation
► Overall development cycle: 18 - 24 months► ~70% of Ticona business is specification-based
36
Case study: orthopedic replacement joints
Exce
ptio
nal D
efen
sibi
lity
► Bio-compatibility► Wear resistance► Impact strength► FDA compliance
Extreme Requirements
GUR® UHMW-PE► Medical grade► Abrasion resistance► Human cartilage
replacement
Excellent Products
► Product chemists –bridging requirements and polymer properties
► Product stewards –ensuring regulatory compliance
► Mechanical designers –translating the polymer intothe molded part
ExtraordinaryEngineering
GUR®: Only engineered polymer approved for hip and knee replacements
37
Other 6%
Broad range of end-use applications to targeted niches…
Revenue by End-Use 2007E ~ $1 billion
Alternate Fabrication12%
Transportation 47%
● Fuel systems● Safety systems● Mechanical components
Electrical & Electronics 8%
● Communication systems● LED lighting● Connectors
Consumer & Appliance 12%
● Water purification● Durable household goods● Bakeware
Industrial 10%
● Fluid handling● Gearing
● Drug delivery systems● Medical implants
Medical 5%
● Emissions filtration● Textiles
38
…requiring a consistent global brand experience
ChinaEuropeAmericas► Application development► Compound development► Polymer development► Testing► Processing optimization
► Application development► Compound development► Polymer development► Testing► Injection molding
► Application development► Compound development► Testing► Processing optimization
39
1,000s of products in 1,000s of applications across dozens of industries
40
Sustained performance: proven track record of revenue and earnings growth
► AEM has consistently delivered continued sales and earnings growth
► High energy and raw material costs compressed 2007E Operating EBITDA
Estimated impact of ~250 – 350 bps
► Volume growth in both automotive and non-automotive applications globally
Operating EBITDA and Revenue
0
75
150
225
300
2002 2003 2004 2005 2006 2007E
Ope
ratin
g EB
ITD
A ($
in m
illio
ns)
0
300
600
900
1,200
Rev
enue
($ in
mill
ions
)
Operating EBITDA Revenue
41
Strong correlation between value delivered and specification strength
Specification Strength► Richness of portfolio
► Long-term customer relationships
► Technical and application expertise
► Global technical and manufacturing presence
► High value-in-use applications
► Limited substitute materialsValue Delivered
Spec
ifica
tion
Stre
ngth
LANXESS
AEM
DuPont
SABIC/PC
BASF
DSM
Solvay
DOWLyondell/Basell
SABIC/Core
Nova
Value of Specification
42
Premier franchise
► Fastest earnings growth
► Highest relative profitability
► EBITDA multiple continues to trail peers despite continued earnings strength
Peer group: corresponding segments of BASF, DSM, DuPont, GE Plastics, Solvay PlasticsYTD 2007 figures include one quarter of GE plastics, now SABIC/SIPAEM results exclude certain other charges, COC divestiture and equity earnings from affiliates
Relative Financial Performance versus AEM Peer Group
Ope
ratin
g P
rofit
as
a %
of S
ales
BASF
DSM
DuPont
Solvay
GE Plastics BASF
DuPont Solvay
SABIC/SIP
15%
2003 YTD 2007
Celanese AEM
DSM
Celanese AEM
43
Well positioned for continued growth
►Premier FranchiseDifferentiated business model
Sustained performance
► Growth through Innovation and Technology● Capitalize on Megatrends
● Asia expansion
44
Committed to delivering value creation
$350 – $400 million increased EBITDA profile plus EPS potential by 2010
X
X
X
X
Operational Excellence
X
Balance Sheet
X
X
Organic
>$100MMXAcetyl Intermediates
X
Revitalization
X
X
Asia
>$100MMXConsumer and Industrial Specialties
X
Innovation
Incremental EPS
Celanese Corporate
>$100MMAdvanced Engineered Materials
EBITDA ImpactGroup
Primary Growth Focus
Ope
ratin
g EB
ITD
AEP
S
45
Operating EBITDA Growth Objectives (versus 2006 Baseline)
An important contributor to the Celanese growth strategy
► Volume growth > 2X GDP
► Innovation in automotive and non-automotive applications drives continued earnings improvement
► Expansion in China provides platform for further penetration in end-use applications
0
50
100
2007 2008 2009 2010
$ in
mill
ions
46
47
PowerEmpower sustainabletechnologies
48
Technologies to reduce emissions and improve fuel efficiency
Weight reduction
Engine combustionefficiency
Alternative fuels
Fuel cells
Hybrid-engine systemsAlternative renewable fuel sources help reduce CO2
Advanced air management enhances engine
combustion efficiency
Development time to full
commercialization
49
Leading engineered polymers in emissions innovation and fuel efficiency
E85 Compatible Polymers
Drivers:► Alternative fuels – Bio-fuels► Air quality► SORE emissions► Legislation – environmental & safety
►Chemical resistance► Impact resistance►Dimensional
stability►High heat
65 million lbs. acetal
in 2006
Fuel ModuleHostaform® XF
Turbocharged Engine Fortron® PPS
Air Cooler
Source: Celanese estimates
Customer Requirements
80 million lbs. ETPs
in 2010
50
Emissions reduction beyond fuel systems
Metallic-look Hostaform®/POM► Eliminates painting/plating
► Reduces VOCs
► Color matching to interior painted metallic parts
► Saves $1 to $4 per vehicle
Customer Requirements► Functional aesthetics► Wear resistance► Strength
Significant opportunity: currently only ~200,000 out of 120 million doors worldwide
use metallic-look POM
51
SafetyAdvance intelligentsystems
52
Vectra® LCP: Translating connector leadership into LED lighting
$17.4 billion in 2017
Drivers:► Improved safety► Lower energy consumption► Miniaturization► Aesthetics► Design trends
LED Street LampsAudi A8 Daytime Running
Lights
Audi R8 54 LEDs per Headlamp
CustomerRequirements
► High flow► Low emissions► Dimensional
stability► Pinpoint light
source
Source: Philips
Applying Connector Expertise to New
Technologies
$5.1 billionin 2006
53
LifeEnhance living comfort
54
5.5 billion with clean water
access – 2006
Shower Filter Faucet Filter Drinking Water Filter
CustomerRequirements
►NSF specification►Proprietary binding
agent to boost filtration efficiency
GUR® UHMW-PE: well positioned to provide solutions for global water filtration
2000 2003 2006 2008 2010
Drivers:► Population growth► Global requirements► Economical alternative to
bottled water► World Health Organization
standards
20% GUR® Growth
6.1 billion with clean water
access – 2015
Long history in Asia provides competitive advantage
► 40 years of experience in Asia through strong affiliate relationships
► Strong relationships with our customers in Asia
► Expanding model of local customer support and development
► Full range offering of leading products
► Investing in local manufacturing
55
56
► GUR® and Celstran® unit construction underway and production expected in 2008
► Recently announced addition of new compounding plant at Nanjing in 2009
► Application development center in Shanghai
► Incremental contribution by 2010:
● ~$100 million in annual sales
Fully Integrated Complex
EmulsionsComplex
Administration &Maintenance
Utilities /Tank Farm
Compounding
Acetic AcidUnit
Acetic AnhydrideUnit
Vinyl AcetateMonomer Unit
Warehouse GUR®
UnitCelstran®
Unit Flare
Celanese Nanjing Integrated Complex
Nanjing provides platform for Ticona growth in Asia
57
2,100 GW coal-fired
power in 2020
CustomerRequirements
► Chemical resistance► High heat
Technologies to reduce particulate emissions: coal-fired power plants
Drivers:► Increased global power
consumption ► More coal-fired power plants► Air quality► Environmental legislation
Fortron® PPS Air Filter Bags
Coal-fired Power PlantCoal-fired Power Plant Air Filter System
1,300 GW coal-fired
power in 2006
58
Coal-fired power plants provide significant growth opportunity
► Characteristics of filter bags Typically 6 inches in diameter and 26 feet in length Up to 20,000 bags used per houseLife span of 3 to 5 years
► Filter bags contain an average of 4.0 to 4.5 lbs. of Fortron®
PPS ► Electricity from coal in China
will increase more than 80% by 2020
2006: 413 GW coal-fired power2020: 760 GW coal-fired power
Flue Gas Cleaning Bag House for Coal-fired Power Plants
59
13
6
2.5
40
18
Source: Global Insight
Pounds per Vehicle
Source: Celanese Estimates
Significant opportunity for increased penetration in high growth region
0 3,000 6,000 9,000 12,000 15,000
Mexico
Canada
Spain
Brazil
France
S. Korea
India
Germany
U.S.
Japan
China
Vehicle Production (Thousand units)
2006 Production
Production Growth 2006-2012
China production nearly doubles within 5 years
Trend
Global Auto Production
2001
2010E
Highest Current Model
China Current
2007E
Advanced Engineered Materials Type of Resins
60
Translating auto application expertise to Asia
Door Systems
► Window lifts► Door locks► Door modules► Power motor housings
Fuel Delivery Systems
► Fuel reservoirs► Fuel limit valves► Roll-over valves► Fuel flanges► Fuel pumps
Structural Parts
► Front-end modules► Instrument panels► Sunroof systems
Select Interior Components
► Instrument clusters► Metallic-look controls► Safety restraints► Overhead consoles
61
Application development requirement: a global network to serve global demand
Application Development
Center Frankfurt New Application
Development Center
Shanghai Application
Development Centers
Florence, KYAuburn Hills, MI
62
Industry recognition of innovation
Winner Of SPE 2007 Grand Innovation Award Mercedes-Benz C-Class► Vectra® LCP active safety sensor
► Detects moisture, activates wipers, dries brakes
Winner Of SPE Innovation AwardBMW X5► Celstran® LFRT fender carrier
► Strong, lightweight
63
AEM is well positioned for continued growth
► Premier FranchiseDifferentiated business model
Sustained performance
► Growth through Innovation and TechnologyCapitalize on Megatrends
Asia expansion
Doug MaddenPresident, Acetate, AT Plastics and Emulsions & PVOH
Consumer and Industrial Specialties
65
Consumer and Industrial Specialties: value-added specialty businesses
Celanese2007 Revenue1: $6.5 B2007 Op. EBITDA Margin (est.): ~20%
Acetyl IntermediatesConsumer and Industrial Specialties
Advanced Engineered Materials
2007 Revenue1: $2.5 B2007 Op. EBITDA Margin (est.): ~15%
Industrial Specialties
► Leading global positions in both businesses► Significant consumers of Acetyl Intermediates products► Downstream integration mitigates raw material volatility► GDP+ growth
Consumer Specialties2007 Revenue1: $1.4 B2007 Op. EBITDA Margin (est.): ~8%
2007 Revenue1: $1.1 B2007 Op. EBITDA Margin (est.): ~25%
1Represents 2007 estimated third party net sales
66
X
X
X
X
Operational Excellence
X
Balance Sheet
X
X
Organic
>$100MMXAcetyl Intermediates
X
Revitalization
X
X
Asia
>$100MMXConsumer and Industrial Specialties
X
Innovation
Incremental EPS
Celanese Corporate
>$100MMAdvanced Engineered Materials
EBITDA ImpactGroup
Ope
ratin
g EB
ITD
AEP
SCommitted to delivering value creation
$350 – $400 million increased EBITDA profile plus EPS potential by 2010
Primary Growth Focus
67
Operating EBITDA Growth Objectives(versus 2006 Baseline)
CIS: path to improved earnings
► Ahead of schedule to deliver > $100 million in additional EBITDA
► Consumer SpecialtiesSuccessful completion of Acetate revitalizationIntegration of Acetate Products Limited (APL) acquisition
► Industrial SpecialtiesRevitalization of emulsions and PVOH businessesInnovation in key customer applicationsGlobalization in emerging economies
0
50
100
150
2007 2008 2009 2010
Consumer Specialties Industrial Specialties
$ in
mill
ions
>$100 million by 2009
68
Consumer Specialties: stable earnings and cash generation
Acetate Products and Ventures Nutrinova PVOHEmulsions AT Plastics
Consumer and Industrial Specialties
2007 Revenue1: $2.5 B2007 Op. EBITDA Margin (est.): ~15%
Industrial Specialties
► Leading global franchises► Stable, consistent cash flows► Economically stable; minimal earnings volatility► Closer to the final consumer► Growth opportunities through continued innovation and customer partnerships
Consumer Specialties2007 Revenue1: $1.4 B2007 Op. EBITDA Margin (est.): ~8%
2007 Revenue1: $1.1 B2007 Op. EBITDA Margin (est.): ~25%
1Represents 2007 estimated third party net sales
69
Acetate Products: execution of strategy continues to deliver earnings growth
Timeframe
►APL Acquisition Integrate the business
Capture/realize synergies
2004 2005 2006 2007 2008 2009
►Restructuring/RepositioningChina venture tow expansions
Filament exit/site optimization
China venture flake expansion
Complete
Complete
Complete
►Beyond 2008Maximize cash generation
Selective and sustainable growth
Next moves: further Asia expansions
2010
70
Successful revitalization and strategy progress for Acetate Products► Significant improvement to manufacturing cost structure
Consolidated manufacturing footprint to lower-cost regionsClosed the Edmonton flake plant in 1Q 2007
► Completed planned China venture expansions – more than doubledExpanded flake plant in 2Q 2007 Increased dividend flow in 2007 and 2008E
► Acquired cellulose acetate flake, tow and film business of APL – adding ~$250 million in revenue
Expanded1 site 0 sites2 sites4 sitesFlake
2 sites
3 sites
North America2005
Fully exitedFilamentExpanded2 sites1 site2 sitesTow
China Ventures2005 to 2008E
Europe 2008E
Europe2005
North America 2008E
Optimized Operations and Market Focus
71
Benefits to CelaneseAcetate Products Limited
APL Acquisition: a strategic fit
► Acquired cellulose acetate flake, tow and film business of APL
Purchase price ~$110 millionAdditional $30 million for synergies
► 2 U.K. manufacturing facilities:● Spondon● Little Heath – Closed 3Q 2007
► Customers – Broadens mix and reach ► Integration – Enables European flake
production► Captive consumption - Increases
downstream integration ► Procurement and logistics – Network
enhancements► Synergies – Full capture by 2008
Acquisition Synergies
Purchased EBITDA
~$20 million
~$20 million
~$20 million
► Manufacturing
► SG&A
► Logistics
72
Acetate Products: optimized global manufacturing footprint
Tow ProductionFlake Production
Nantong, China
Lanaken, BelgiumSpondon, United Kingdom
Narrows, Virginia
Ocotlan, Mexico
Kunming, China
Zhuhai, China
Only integrated producer in each region of the world
73
0%
20%
40%
60%
Asia Europe Americas ROW Total
Celanese Share of Global Acetate Tow Market (2007E)
CAGR 2005 – 2010E2 – 3%
1 - 2%
(1 – 2)%
1 - 2%
Strategically positioned for further expansion in growth regions
1Includes share attributable to China venturesSource: Celanese estimates
Global Market Size: ~720kt
1 1
Global Acetate Tow Market by Region (2007E)
0%
20%
40%
60%
Asia Europe Americas ROW
74
CS Operating EBITDA 2004 – 2010E
0
50
100
150
200
250
300
350
2004 2005 2006 2007E 2008E 2009E 2010E
$ in
mill
ions
Consumer Specialties: successful revitalization and continued execution of current strategy
► Acetate Products revitalization completed in 2007
► Full synergy capture of APL acquisition by 2008
► Nutrinova to offset price declines with volume increases
► Modest growth beyond 2008:
Growth in Asia continues at 2-3%per yearSustainable Operating EBITDA
1Dividends from cost investments
Asian Growth1
Growth Objective
Nutrinova Operating EBITDA
Acetate Base Operating EBITDA
European Initiative
North America/Europe Revitalization
75
Industrial Specialties: integrated technology solutions
Acetate Products and Ventures Nutrinova
Consumer and Industrial Specialties
2007 Revenue1: $2.5 B2007 Op. EBITDA Margin (est.): ~15%
Industrial Specialties
► Significant consumer of Acetyl Intermediates products
► Earnings improvement through revitalization
► Growth opportunities through continued innovation and globalization
Consumer Specialties2007 Revenue1: $1.4 B2007 Op. EBITDA Margin (est.): ~8%
2007 Revenue1: $1.1 B2007 Op. EBITDA Margin (est.):~25%
1Represents 2007 estimated third party net sales
PVOHEmulsions AT Plastics
76
Profit Added Through Chain
Production and Market Driven
Prof
it R
ange
per
Ton
of
Ace
tic A
cid
Increased Value
Acid Margin Sell Acid as VAM
Technology and Customer Driven
Integrated model captures value and mitigates volatility
Reduced Volatility
Peak Average TroughEa
rnin
gs Im
prov
emen
t per
To
n of
Ace
tic A
cid
~30%
Cycle volatility reduction
~10%
~35%
Acetyls versus Integrated Downstream
Sell VAM as VAE
Total MarginAvailable
► Higher overall earnings through integrated chain► Lower earnings volatility with downstream integration
77
Strategy for earnings growth
Operational Excellence Technology Globalization
Revitalization► Operational Excellence:
Reliable, efficient asset utilization and cost reduction implementation
► Technology: Expanding applications and margins through innovation
► Globalization: Growth and increasing leadership position through expansion in emerging economies
Revitalization provides the execution platform for
earnings growth
78
Operational Excellence: significant improvement in manufacturing cost structure► North America
Redeploying production portfolio – capitalize on low cost production
Completed sale of AT Plastics films business
► EuropeExiting Warrington, Guardo and Roussilon production
Expanding Geleen and Frankfurt sites
► AsiaCompleted construction of Nanjing emulsions unit in 4Q 2007
0 sites0 sites1 site2 sites2 sites2 sitesPVOH
1 site0 sites5 sites 7 sites3 sites3 sitesEmulsions
n/a
Asia2006
n/an/an/a1 site1 siteAT Plastics
North America
2006
Asia2010E
Europe 2010E
Europe2006
North America 2010E
Optimized Operations and Market Focus
79
Fixed Cost per PoundAnnual Production Capacity Growth (2004-2008E)
75%
100%
125%
150%
175%
2004 2005 2006 2007 2008EFrankfurt Perstorp
Cost reductions and efficiency improvements enhance production capabilities
Prod
uctio
n C
apac
ity (2
004
= 10
0%)
40%
60%
80%
100%
120%
2004 2007 2008E
► Increase asset utilization at existing facilities► Concept will be applied across the manufacturing footprint
Case study: systemwide reduction at two sites
80
Technology enables access to expanded applications
Industrial Specialties Applications
Engineered Fabrics/ Textiles: 13%
Celvol®, Elite®
Paints & Coatings: 18%
Mowilith®
Specialty/Other: 8%
Celvol®, Vinamul®Ateva®
Paper: 11%
Celvol®, Vinamul®Construction: 5%
DUR-O-SET®, Vinamul®,Mowilith®
Automotive/Industrial: 11%
Ateva®, Celvol®
Mowilith®, Celvol®,DUR-O-SET®
Adhesives: 34%
End use breakdown based on 2007 estimated external sales for Industrial Specialties
81
0.0
1.0
2.0
3.0
4.0
2006 2010E
Global Vinyl Emulsions Applications Driving 2010 Growth
OthersCelanese
Technology enhancements open $1.0 billion of new opportunities
$ in
bill
ions
8%$100 – $200 Enviro-friendly adhesives
Growth Rate
2010E Application Sales ($MM)
Applications
30+%$100 – $200 China building/construction
3% - 5%$200 – $300Engineered fabrics/glass fiber
10+%$400 – $500Low VOC and nano paints
~25%
$1.0 billion expansion = >$250 million in revenue
~30% increase in vinyl space
>25%
82
European Interior Paint Industry Development
Case study: Celanese is the global leader in low-emission binders
► European success driven by increasing consumer awareness and regulatory requirements of low-VOC products
► Celanese technology position: clear leader
0%
50%
1996 2006 2010E
Celanese Others
European VAE Success
VAE
Shar
e of
Inte
rior P
aint
s1990 2006
VOC Content
EU V
OC
par
ts/li
ter
83
► Current trends in U.S. following European precedent
► In 2008, Southern California will further restrict emission requirements in paints
► Today, less than 25% of the interior paints meet the contemplated guidelines● $100 - $2001 per ton estimated
cost for non-VAE emulsions to achieve standard
► U.S. interior paint opportunity ~$1.0 billion
VAE provides favorable substitution for low-VOC requirements
1999 2008
US
VOC
gra
ms/
liter
1999VOC (g/L): 250 – 380
2004VOC (g/L): 100 – 150
VOC Regulatory Trends for Flat to Semi-Gloss Paints
VAE industry opportunity: current regulatory trends in U.S.
1 Based on Celanese estimates
European Standard
84
Technology provides access to new applications and improves earnings profile
► Expanding the available application space► Anticipating the future needs of a changing world► Creating opportunities for favorable substitution and improved product mix
Other$5B
Vinyl$3B
Vinyl40%Other
47%
$8 Billion Global Emulsion Systems
Target Space
Customer-driven Product Innovation
Vinyls Technology Extension
Global Emulsion Systems Expansion of Vinyl Solutions
2010E2006
$1B
85
Globalization: significant opportunities in high growth regions
Percent of Celanese Emulsions Net Sales1 by Region
37% 62% 1%
1 Based on 2006 sales
86
Estimated Regional Balance - 2010
Percent of Celanese Emulsions Net Sales1 by Region
30 - 35% 50 - 55% 15+%
1 Based on Celanese estimates
87
Nanjing allows Celanese to capture significant growth in Asia
► 60 wet kt capacity► Construction completed in
October 2007► Commercial sales
underway► Primary supply for
customer locations in China and the rest of Asia
► Application development center in Shanghai
Fully Integrated Complex
EmulsionsComplex
Celanese Nanjing Integrated Complex
Industrial Specialties Nanjing Phase 1
Administration &Maintenance
Utilities /Tank Farm
Compounding
Acetic AcidUnit
Acetic AnhydrideUnit
Vinyl AcetateMonomer Unit
Warehouse GUR®
UnitCelstran®
Unit Flare
88
0.0
1.5
3.0
4.5
2005 2010E
Significant growth expected in China vinyl systems
► Industry trends driving significant growth in China
► Vinyl systems growing faster than other systems
$ in
bill
ions
19% Growth
11% Growth
0
100
200
300
400
500
Adhesives Coatings Construction Nonwovens$
in m
illio
ns 12+%
13+%
30+%10+%
Other Systems
Vinyl Systems
System Applications and Growth Rates for ChinaChina Latex Demand
Source: Kline and Celanese estimates
89
2007E
2008E
0
100
200
300
400
2006 2007E 2008E 2009E 2010E
VAE
(kt)
0%
5%
10%
15%
20%
25%
30%
Cel
anes
e Sh
are
Nanjing provides platform for vinyl systems growth in China through VAE
► VAE industry in China growing at ~20%
► Began commercial sales in 2006
► Nanjing unit operational in 2007
► Capturing growth at faster-than-expected rate
► Objective by 2010: ~25% of fast growing industry
China VAE Celanese Share Projected
~20% CAGR
China VAE
90
Other emerging economies…the next frontier for emulsions
0
300
600
900
1,200
1,500
1,800
1985 1995 2005 2015 2025Low Middle Upper
► India: Our next focus of expansion
► India is poised to significantly grow its middle class
► Rising wealth and consumption will drive vinyl product demand at even greater rates
► India and China represent over 30% of the global population
$ in
mill
ions
Source: McKinsey&Co. 2007
0
500
1,000
1,500
1995 2005 2015 2025
USD
Income Groups
2005 – 2025 CAGR: 6%
Housing and Personal: India Average ConsumptionIndia Aggregate Consumption
91
Consumer and Industrial Specialties: executing and exceeding our plan
~$350 MM
> $450 MM
2010E EBITDA Profile
Achieve ≥ $100million by 2009
2006E EBITDA
CS
IS
► Consumer Specialties● Successful completion of
revitalization● APL: acquire, integrate
and realize synergies
► Industrial Specialties:● Revitalize Emulsion and
PVOH businesses● Innovate new product
applications and technologies
● Expand globally in emerging regions
John GallagherExecutive Vice President and President, Acetyls and Celanese Asia
Acetyl Intermediates
93
Acetyl Intermediates: leading global franchise of intermediate products
1Represents 2007 estimated third party net sales
Celanese2007 Revenue1: $6.5 B2007 Op. EBITDA Margin (est.): ~20%
Acetyl IntermediatesConsumer and Industrial Specialties
Advanced Engineered Materials
2007 Revenue1: $3.0 B2007 Op. EBITDA Margin (est.): ~25%
► Leading global position in each product► GDP+ growth in each business► Strong and growing position in Asia► Continuous improvement on favorable raw material supply positions globally► Significant advantages in technology, operating costs and capital costs
Acetic Acid Acetic AnhydrideVinyl Acetate Monomer
Acetate Esters and Other Derivatives
94
Differentiated intermediates with strong integration into Celanese specialties
Acetyl Intermediates (AI)
Formaldehyde
Acetic Acid
Differentiated Intermediates Specialty ProductsBuilding Block
Raw Materials
Advanced Engineered Materials
(AEM)
Industrial Specialties
(IS)
Anhydride and esters
Consumer Specialties
(CS)
Ticona Engineering
Polymers
Emulsions
Acetate
AT Plastics
Nutrinova
PVOH
Affiliates
VAM
95
Acetyl Intermediates business model: positioned to create sustainable value
► Attractive industry structure
► Leading technology with a steep cost curve
► Global footprint
► Significant capital efficiency
► Favorable supply/demand outlook
► Advantaged raw material supply
► Long-term growth opportunities
96
Cathay3%
Eastman3%
Other27%
Wujing3%
Kyodo Sakusan
4%
Lyondell5%
BP 22%
Celanese28%
Sopo 5%
VAMAcetic Acid (2007E)
Why we like acetyls: attractive industry structure
► Global leader► GDP plus 1-2% growth► Well-structured Industry
Source: Tecnon 2007, Celanese estimates1Schedule for startup in 2008
► Global leader► GDP+ growth► Benefits from upstream integration
VAM (2007E)
1
Dairen11%
Celanese26%
Celanese Nanjing
4%
Dow8%
Sinopec7%
DuPont6%
Others27%
BP5%
Lyondell6%
97
Celanese technology drives leading operating costs
Source: Celanese estimates, available public data
2010E Acetic Acid Cost Curve (kt) (based on nameplate capacity)
By-prod
High Cost Supply
Celanese Technology
0 2,000 4,000 6,000 8,000 10,000 14,000
Conventional MeOH/CO
AOPlus™/Leading Competition
Ethanol
Ethylene
12,000
► High-cost technology ~2.0 to 2.5X higher production cost versus leading technology
► Conventional methanol carbonylation technology ~20-30% higher cost
Celanese technology: a long-term
competitive advantage
98
Aggressive Protection of Celanese Technology► Positive outcome from all patent protection activities undertaken to date► Multi-million dollar judgments in Celanese’s favor► Actively track competitive activities and will continue to pursue instances of
infringement
Continue to improve and aggressively protect advantaged technology
2007200620072006
8701
2481
647
530VAntage PlusTM successful at
CangrejeraAOPlusTM implemented at all
core sites globallyCommercial Status
8921
1701
728
616
Intellectual Property
Effective Global Patents
Additional Applications
VAntage Plus™ - VAMAOPlus™ – Acetic Acid and Supporting Patents
1Includes assumption of ~350 patents from a Celanese German subsidiary
99
Celanese Estimates of Acetic Acid Delivery Costs1
(CIF China-Nanjing)
Nanjing advantages further improve Celanese cost structure
► Advantaged coal-based carbon monoxide source
► Lower fixed costs relative to other regions in the world
► Proximity to China-based customers
Strong distribution network throughout China and the rest of Asia
Low freight costs
No import duties within China
60% downstream integration with Celanese derivatives startup
Source: External benchmarking, Celanese analysis 1Raw material pricing based on prevailing regional costs; Celanese 2007 estimates
0
50
100
150
200
NorthAmerica
Middle East CE Nanjing
Variable Costs Fixed Costs Freight/Duty/DistrubtionIndexed: China Average Costs = 100%
Perc
ent (
%)
100
A global footprint positioned to capture emerging demand
10030235Anhydride
510635725VAM
13040165Esters
1,2004401,490Acetic Acid
AsiaEuropeAmericas
All values shown in kt per year1Startup schedule for 2008
SingaporeAcid = 600VAM = 210Esters = 130
Frankfurt, GermanyVAM = 285Esters = 40
TarragonaVAM = 200
Bay City, TXVAM = 300
Clear Lake, TXAcid = 1,200VAM = 310
Cangrejera, MexicoVAM = 115Anhydride = 90Esters = 105
Pardies, FranceAcid = 440VAM = 150Anhydride = 30
Nanjing, ChinaAcid = 600VAM = 3001
Anhydride = 1001
Pampa, TXAcid = 290Anhydride = 145Esters = 60
Scheduled for closure in 2009New Location
Celanese Global Manufacturing Locations
► Well positioned to capture continued growth in established, high-demand regions (Americas, Europe)
► Nanjing facility to capture strong growth in China
► Singapore facility to support India and other Southeast Asia demand
101
Significantly lower capital intensity versus other new acetyl complexes
► Nanjing Phase 1: delivers capital advantage that is between ~2 to 3 times greater than all other acetyl projects
► Nanjing Phase 2: a fraction of Phase 1 capital for the same production capabilities
Celanese capital efficiency: a long-term competitive
advantage
Capital Intensity
Information from various press releases, 2007 China Acetic Acid Conference, and Celanese estimates
0
50
100
150
200
250
300
350
CE NanjingPhase 2
CE NanjingPhase 1
LocalChinese
Sipchem
(Rel
ativ
e $C
apita
l/$A
cety
l Sal
es)
102
Historical Industry Effective Capacity1
Less efficient new capacity has been reducing effective utilization
► New entrants with less reliable acetic acid technology
Significantly longer startup curves Higher number of outagesLess reliable equipment
► Natural gas restrictions in emerging regions
Further restrictions on chemical applications announced in China September 2007
► Higher frequency of raw material (primarily CO) disruptions since 2003
2008 to 2010 effective utilization assumed at 88%
through at least 2010
70%
80%
90%
100%
2002 2003 2004 2005 2006 2007E 2008EPreviously assumed industry effective utilization
1Source: Tecnon Orbichem 3rd party analysis, Celanese estimates
2007 Clear Lake impactActual industry effective utilization
103
600ktSopo (expansion)
200kt
350kt
Tianjin Bohei
Lunan Cathay (expansion)
A
A
A
200ktDaqing
200ktHualu Hensheng A
Delays continue to be common for acetyl projects
= Project delay
Company announced startup A CE 2005 update CE 2006 update CE 2007 update
500ktAcetex (Tasnee)
150ktSopo
150ktFanavaran
200ktLunan Cathay
200ktWujing
150ktBP / Yaraco
300ktBP/FPC
2008200720062005
425kt
550kt
600kt
Capacity
BP / Sinopec
Celanese Nanjing (Phase 1)
Sipchem
20102009Company
A
A
A
A
A
A
A
A
A
A
A
SU
X
SU
SU
X
X
X
X
SU
SU
Cancelled
X
X
X
X
X
X
X
X
X
SU
SU
X
SU
X
X
X
X
X
= Actual plant startupSUX
104
Acetic acid high utilization rates continue into 2010
0
2,000
4,000
6,000
8,000
10,000
12,000
2004 2005 2006 2007E 2008E 2009E 2010E
kt
High CostLow CostDemand
12008E-2010E effective utilization based on external analysis assumptionsSource: available public data
Utilization of EffectiveCapacity1(Nov, 2007 ): 91% 93% 92% 94% 93% 91% 91%
Acetic Acid Supply/Demand Balance
105
Acetyls remains an advantaged industry
Acetyls: differentiated and less cyclical versus mainstream commodities1Source: Tecnon 20072Source: CMAI
► Acetyls► Readily available► Leading technology not widely licensed
Technology
► Acetyls► Relatively flat within a region
► Steep cost curveCost Curve
► Acetyls► Feedstock dependent► Close to customerAsset Location
► Acetyls► FragmentedTop 2 producers1: ~ 15% of the total global market
► Attractive● Top 2 producers1: ~50%
of the global market
Industry Structure
► Acetyls► Overcapacity by early 20092
► Favorable supply/ demand balance
Supply/demand Outlook
AdvantageEthyleneAcetyls
106
Increasing Ethylene Costs ($US/ton)1
Volatile Methanol Prices ($US/ton)1
Continued earnings stability from structural improvements and market conditions
►Southern Chemical contract
►Advantaged European methanol
►Producer-type ethylene economics
►Significant captive product consumption
► Ibn Sina dividends
►Select formula-based pricing
►Coal-based CO in NanjingAsia AverageWest Europe North America
1Source: CMAI
200
300
400
500
600
700
800
Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007E
Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007E
0%
10%
20%
30%
Q105
Q205
Q305
Q405
Q106
Q206
Q306
Q406
Q107
Q207
Q307
Q407
Rolling Four-quarter Average
Operating EBITDA as a % of Revenues
Ope
ratin
g EB
ITD
A a
s a
% o
f Rev
enue
s
Stable Acetyl Intermediates Operating EBITDA Margin
600
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
107
X
X
X
X
Operational Excellence
X
Balance Sheet
X
X
Organic
>$100MMXAcetyl Intermediates
X
Revitalization
X
X
Asia
>$100MMXConsumer and Industrial Specialties
X
Innovation
Incremental EPS
Celanese Corporate
>$100MMAdvanced Engineered Materials
EBITDA ImpactGroup
Ope
ratin
g EB
ITD
AEP
SCommitted to delivering value creation
$350 – $400 million increased EBITDA profile plus EPS potential by 2010
Primary Growth Focus
108
Operating EBITDA Growth Objectives(versus 2006 Baseline)
An important contributor to the Celanese growth strategy
► Acetyl Intermediates is on track to deliver >$100 million in increased EBITDA profile by 2009
► Continued strong growth in global acetyl demand supported by new Nanjing facility
Successful startup of Nanjing acetic acid plant in 2007; derivatives starting in 2008
► Continuous improvement to the Celanese low-cost production advantage● Advantaged technology● Raw material sourcing
0
50
100
150
2007 2008 2009 2010
2010 and beyond: additional growth from China and other emerging economies
>$100 million by 2009 from
Nanjing Phase 1
$ in
mill
ions
109
Nanjing allows Celanese to capture significant growth in Asia
► Successful startup of acetic acid facility in June 2007
► Downstream acetyl products startup on schedule
Acetic anhydride: 1H 2008Vinyl acetate: mid-2008
► Primary target is China and the rest of Asia
► ~$500 million of total additional revenues for Acetyl Intermediates from Nanjing Phase 1 by 2009
Fully Integrated ComplexCelanese Nanjing Integrated Complex
EmulsionsComplex
Administration &Maintenance
Utilities /Tank Farm
Compounding
Acetic AcidUnit
Acetic AnhydrideUnit
Vinyl AcetateMonomer Unit
Warehouse GUR®
UnitCelstran®
Unit Flare
Acetyl Intermediates Nanjing Phase 1
Nanjing advantaged cost profile: EBITDA margins greater than
segment average
110
Case study: Celanese growth in ChinaN
orm
aliz
ed C
elan
ese
Chi
na G
row
th
Growth supported by Singapore Facility
China G
rowth (kta)
Source: Celanese estimates and actuals; Tecnon 3Q 2007 database
Successfully utilized Singapore plant to seed China growth
Celanese growth supported by Nanjing
Phase 1Nanjing derivative start up
China Acetic Acid Volume Growth (Celanese 2000 volume = 100)
100
200
300
400
500
600
700
800
900
1,000
2000 2001 2002 2003 2004 2005 2006 2007E 2008E 2009E 2010E0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Total China and Taiwan Growth Celanese Normalized Growth
111
Beyond Nanjing: Asia outside of China
0
100
200
300
400
500
600
700
800
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Celanese growth supported by Singapore Facility
► Utilizing Singapore facility to become leading importer to India
Favorable trade relationship between Singapore and India
Low transportation costs to major coastal demand
Strong relationships with key end users
Major volume positions under long-term contracts
► Significant growth opportunities throughout rest of Asia to capture additional acetyls growth
Favorable transportation costs to Southeast Asia
Strong growth in acetic acid demand in several emerging economies:● Vietnam: 10-12% CAGR
● Thailand: 12-14% CAGR
Celanese growth supported by Singapore Facility
Rest of AOC Acetic Acid Estimated Volume Growth
India Acetic Acid Estimated Volume Growth
kta
kta
0
500
1,000
1,500
2,000
2,500
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: Celanese estimates and actuals
112
Consumer trends support long-term growth 1-2% greater than GDP
VAM, EstersPaints, coatings, inks and adhesives used in residential and commercial applications
Emerging Economies
Acetic AcidConsumption of bottled waterWater
Acetic Acid, VAMFilms and polyesterConvenience
VAM (for VAE)Environmentally friendly paints and coatingsEnvironment
VAMIncreased demand for packaging films (PVOH, EVOH)Affluence
Acetic Acid, Acetic AnhydridePharmaceuticalsDemographics
Acetyl Product BenefitedEnd Market Increased DemandKey Trends
113
Capitalize on growth in vinyl emulsions systems
► Increasing vinyls’ share of emulsion systems► Formulation work continues to improve performance of vinyl systems relative to competing
systems Opportunities to capture needs created by market trends (environment, lifestyle, convenience)
► Results in 300 kta of additional VAM growth potential► Acetyl intermediates ideally positioned to capture large share of total growth – both
captive downstream and merchant demand
Other$5B
Vinyl$3B
Vinyl40%Other
47%
$8 Billion Global Emulsion Systems
Target Space
Customer-driven Product Innovation
Vinyl Technology Extension
Global Emulsion Systems Expansion of Vinyl Solutions
2010E2006
$1B
114
Celanese Acetic Acid Volume Growth
Using downstream integration to drive continued earnings growth
► Celanese merchant acetic acid volume has grown at 7% CAGR
► Forward integration into downstream specialty businesses has more than doubled since 2000
Merchant versus Downstream Specialty Integration
100%
120%
140%
160%
180%
200%
220%
2000 2001 2002 2003 2004 2005 2006 2007E
Cel
anes
e G
row
th (2
000
= 10
0%)
Merchant Capacity Downstream Specialty
7% CAGR
Acetyl Intermediates benefits from downstream
specialty growth
12% CAGR
115
Acetyl Intermediates: advantages continue to support strong growth
►Attractive industry structure
► Leading technology with a steep cost curve
►Global footprint
►Significant capital efficiency versus competing technologies
►Favorable supply/demand outlook through 2010
►Advantaged raw material supply
► Long-term growth opportunities
Jim AlderSenior Vice President, Operations and Technical
Global Operational Excellence
117
Global Operational Excellence
► Operational Excellence Culture Manufacturing and beyond
Corporate sustainability
► Nanjing Competitive AdvantagesDemonstrated success
Transferable platform for growth
118
Operational Excellence engrained in Celanese culture
2001 2002 2003 2004 2005 2006 2007 2008
Manufacturing Productivity
Productivity Beyond Manufacturing
Growth, Safety and Environmental
Pre-IPO Today
ManufacturingBeyond Mfg.
Six SigmaMaintenance Excellence
Mfg. Digitization
Energy ExcellenceOne SAP
Mfg. Work Practices
Division SG&A RedesignsShared Services Redesigns
Purchasing & Pricing
Finance Redesign
Convergence
Safety and Environmental
119
0
600
2001 2002 2003 2004 2005 2006 2007E
$ m
illio
n pe
r yea
r
Variable and Energy Cost Improvement$1 Billion / Year Overall Productivity
Proven track record of productivity in all areas
Fixed Cost Reduction Above Inflation
$1.0 billion/year overall productivity (2001 – 2007)
0
600
2001 2002 2003 2004 2005 2006 2007E
$ m
illio
n pe
r yea
r
Cumulative inflation
Variable and Energy Cost ReductionFixed Cost Reduction
120
Energy Usage (MM BTU/lb)
What’s Next
► Site specific projects
► Nanjing startup
► Pampa sale/shutdown
► Kelsterbach relocation (2011)
Manufacturing productivity will continue in 2008 and beyond
Accomplishments: 2001 – 2007
► 28% reduction
► > $150 million per year sustainable productivity
> 40 %reductionvs. 2001
2.5
3.0
3.5
4.0
4.5
5.0
2004 2005 2006 2007E 2010E
121
Finance Cost
Productivity beyond manufacturing will also continue in 2008 and beyond
What’s Next
► Optimize Budapest shared service center
► Treasury function redesign
► Finance back office consolidation
► Consolidation and optimization of U.S. finance operations
► 5-day close
► Systems consolidation
► Shared service center in Budapest
50
75
100
2005 2006 2007E 2008E 2009E
$ in
mill
ions
Base* Productivity Projects
> 30 %reductionvs. 2005
*Excludes Investor Relations, Risk Management, and audit fees
Top quartile
Accomplishments: 2004 – 2007
122
2006 Safety Performance (OSHA)
Proven track record in safety and environmental performance
CE
One of the top performers in the chemical industry
Reductions per unit of production:► Air emissions 21% ► Waste generation 48% ► Energy usage 25%► Greenhouse gas emissions 32%
2006 Environmental Performance (vs. 2001)
Step change reduction in environmental footprint
0.0
0.4
0.8
1.2
1.6
123
2010 Sustainability Goals
Corporate sustainability targetsdrive further improvement
0 20 40 60 80% Reduction versus 2005
2007 progress
►Employees● Safer workplace
►Communities● Improved environment
►Company● Additional productivity
What’s Next
Injury rate
Greenhouse gases
Air emissions
Waste
Energy
124
Air (kg/T)
Emissions reductions continue to improve sustainability
0.3
0.6
0.9
2004 2005 2006 2007E 2010E
30% reduction vs. 2005
Accomplishments: 2001 – 2007► 37% reduction► > 3 million ton/year CO2 reductionWhat’s Next► Further energy reduction► Nanjing startup► Pampa sale/shutdown► Kelsterbach relocation (2011)
Greenhouse Gas (T/T)
Accomplishments: 2001 – 2007► 23% reduction ► > 1,000 ton/year reductionWhat’s Next► Complete MON implementation
(EPA-driven enhanced controls)► Pampa sale/shutdown► Site-specific projects
Emission Intensity
0.25
0.50
0.75
2004 2005 2006 2007E 2010E
30% reduction vs. 2005
125
Nanjing: from “green field” site to integrated complex
Site Entrance and Administration Building
Early 2004 – Site EntranceEarly 2003 – Plans
Admin. &Maintenance
Plant Infrastructure Acetic Acid
Flare
Photo omitted
Photo omitted
126
Acetic acid and emulsions units operating; two acetyl units under construction
VAM
Emulsions
Acetic Anhydride
Acetic Acid
Photo omittedPhoto omitted
Photo omitted Photo omitted
127
Construction underway for two AEM units and one additional unit planned
Compounding
Celstran®
2009 - Plans
GUR®
EmulsionsComplex
Admin. &Maintenance
Plant Infrastructure
Acetic Anhydride
Warehouse
Compounding
Acetic Acid
Vinyl Acetate Monomer
Celstran® FlareGUR®
Photo omittedPhoto omitted
Photo omitted
Nanjing: key decisions have positioned Celanese to generate significant value
1. Ownership/Governance
Global/Highest Local
Offshore Local/In-house
Basic Technologies
Best-in-Class Technologies
Natural Gas-based CO Coal Based CO
Global/Highest 5. EHS Standards
6. Sourcing/Engineering
Best-in-Class Technologies4. Technologies
Coal-based CO3. Feedstocks
Acetic Acid Unit Integrated Complex
Integrated Complex2. Level of Integration
Joint Venture Go AloneGo Alone
128
Alternative Celanese Decision
Local/In-house
129
1. Ownership/Governance: joint venture or go alone
► Go Alone decision provided flexibility and control Integrate Celanese units in all divisions
Establish Celanese culture (i.e., safety, preferred employer)
Select suppliers and vendors
Protect intellectual property
Keep 100% of profits
► Several challenges overcome Develop baseline of trained employees
Establish relationships with local officials
Understand Chinese regulation details
130
2. Level of Integration: highly integrated complex
Merchant
Sales
Methanol
Coal-based CO
Ethylene
~40%100%
~90%
~10%
100%
20% ~40%
100%Emulsions
Acetic Acid
GUR®
Vinyl Acetate
Polypropylène Celstran®100%
Polymer Resin
Acetic Anhydride
Compounding
Infrastructure
131
Nanjing: facts and figures
Acetic Acid► Capacity – 600 kt (expandable
to 1,200 kt)► AOPlus™ Technology
Acetic Anhydride► Capacity – 100 kt
Vinyl Acetate Monomer► Capacity – 300 kt► VAntage Plus™ Technology
Celstran®
► Capacity – 4 kt (expandable to 8 kt)
2007 2008
Emulsions ► Capacity – 60 kt
● VAE – 48 kt● Conventional Emulsions – 12 kt
GUR®
► Capacity – 16 kt (expandable to 32 kt)
Nanjing Facts
► Location – Nanjing City Industrial Park (NCIP)
● Only one of two state-approved industrial parks
● Total area of NCIP ~45 kilometers
► ~19 hectares of land use rights acquired
► Employees – 234 currently and ~300+ expected by 2009 (including shared services)
2009
Compounding► Capacity – 15 kt
132
► Proven● 2004-2010 gasification
scorecard2
• China 29
• US 0
► Reliable● CO supplier (Wison)
performance first five months
• >97% CO availability3
► Low cost● Significant cost advantage
versus natural gas
● Synergies from co-production of methanol and CO
3. Feedstocks: advantaged position with coal-based CO
1From William Preston presentation at Gasification Technologies Council in 2001 2Data from www.gasification.org3Availability defined as percent of time supplying CO, excluding time when Oxygen feed not available
Feeds
H2S
Syngas
Gasification Gas Refining End-products
Syngas (H2 + CO)
CO
Methanol
Sulfur
Solids
Co-products:
SULFURRECOVERY
SULFURREMOVAL
Oxygen
Coal - water
Coal Gasification Process1
Coal Gasification in China: Proven, Reliable, Low Cost
133
Coal Gasification in China: Cost Advantage versus Natural Gas1
133
Nanjing: advantaged feedstock position with coal-based CO
► Coal has a 40% cost advantage vs. natural gas at current natural gas pricing
► Cost advantage likely to increase given relative coal versus natural gas reserves
1Proforma economics based on current Nanjing coal and natural gas prices ($8 per MM BTU) plus 15% return
0Coal to CO NG to CO
CO
Cos
t ($
per t
on)
Variable and Fixed Cost Capital Return
134
AOPlus™ Implementation in Clear Lake
4. Technologies: leading Celanese acetic acid technology (AOPlus™) protected with patents
► 25 years of Celanese technology development integrated in Nanjing design
► Celanese patents worldwide531 total with 473 active
400 additional applications
► Celanese patents in China24 total with 22 active
12 additional applications
1978 19
83
1988
1993
1998
2003
2008
Uni
t Cap
acity
, kta
200
1,300Technology
2 Technologies
2 Technologies
2 Technologies
TechnologyTechnology
2 TechnologiesTechnology
TechnologyTechnology
TechnologyMore CO
Technology2 Technologies
2 Technologies
More COTechnology
2 Technologies
135
VAntage™ Implementation in Bay City
Nanjing: leading Celanese VAM technology (VAntageTM)
0
350
1970
1975
1980
1985
1990
1995
2000
2005
Uni
t Cap
acity
, kta
Debottlenecking and Technology
Technology
TechnologyTechnology
Debottlenecking and Technology
Technology
Technology
2008
► 35 years of Celanese technology development integrated in Nanjing design
► Celanese patents worldwide902 total with 892 active
170 additional applications
► Celanese patents in China21 total with 21 active
12 additional applications
5. EHS Standards: committed to safety and environmental excellence
► U.S. or China standards, whichever greater
► No significant environmental incidents to date
China standards higher
► Integrating Celanese standards and culture
►No lost time injuries in site history (> 7 million man-hours)
Safety Environmental
136
137
Capital Intensity
6. Sourcing/Engineering: lowest capital acetyl complex in the world
Information obtained from various press releases, 2007 China Acetic Acid Conference, and Celanese estimates
0
50
100
150
200
250
300
350
CE Nanjing Local Chinese Sipchem
CE Nanjing vs. Sipchem
CE Nanjing vs. Local Chinese
+++++++Overall
++++++Timing of Investment
++++++++Integration
+++++++Scale
++++++++Technology
++++++Geography
Rel
ativ
e $C
apita
l/$A
cety
l Sal
es
CE Nanjing vs. Local Chinese
CE Nanjing vs. Sipchem
138
Operational Excellence: integral part of Celanese value proposition
► $300–350 million total capital► $600–800 million revenue by 2010
► $1 billion/year in 2001 - 2007► More in 2008 and beyond
Sustained Productivity Nanjing: Demonstrated Success
0
1,000
2001 2002 2003 2004 2005 2006 2007E
$ m
illio
n pe
r yea
r
EmulsionsComplex
Admin. &Maintenance
Plant Infrastructure
Acetic Anhydride
Warehouse
Compounding
Acetic Acid
Vinyl Acetate Monomer
Celstran® FlareGUR®
Fixed Cost Reduction
139
Nanjing: platform for growth
► Successful
► Execution
► Expertise
► Scalable
► Portable
Pursue. Premier.
1. Ownership/Governance
Global/Highest Local
Offshore
Basic Technologies
Natural Gas Based CO
Acetic Acid Unit
Joint Venture
Local
Best-in-Class Technologies
Coal Based CO
Integrated Complex
Go Alone
Global/ Highest Local 5. EHS Standards
Offshore Local/In House6. Sourcing/Engineering
Basic Technologies
Best-in-Class Technologies4. Technologies
Natural Gas-based CO Coal-based CO3. Feedstocks
Acetic Acid Unit Integrated Complex2. Level of Integration
Joint Venture Go Alone
Alternative Celanese Decision
Steven M. SterinSenior Vice President and CFO
Value Creation
141
Building a case for value
► 2007 financial update
► 2008 financial outlook
► Cash flow and capital structure strategy
► Case for improved value creation
142
Progression of Adjusted EPS Outlook
Continued strength in 2007: increasing guidance
► Adjusted EPS guidance range increased to $3.26 to $3.31 per share
Current full-year 2007 guidance range above high end of original estimatesContinued strong global demand for acetyl products Ticona volume growth in EuropeAcetate Products revitalization successfully completed
► Discontinued Edmonton methanol operations contributed $31 million of Operating EBITDA in 2007
FY 2007 Guidance
$976 up 12%$302Operating EBITDA
$2.49 up 23%$0.73Adjusted EPS
$4,684 up 8%$1,573Sales
9 monthsended 9/30/07
3rd Qtr 2007($ in millions)
$2.50
$2.70
$2.90
$3.10
$3.30
$3.50
Dec-06 Feb-07 May-07 Jul-07 Oct-07 Dec-07
143
2006 Rptd Oxo Disc.Ops.
2006 Base Strategy Market 2007E
Realizing progress in 2007
1,280 - 1,310
85 - 9056 - 61
► Delivering on strategic growth objectives
Consumer Specialties on track with revitalization
Nanjing acetic acid plant startup ahead of previous estimate
► Benefiting from strong market conditions
Favorable acetyl conditions expected to more than offset volatile raw material costs and impact of Clear Lake outage
Strong performance of affiliates, particularly Ibn Sina
2007 PerformanceOperating EBITDA
1,285 - 1,2951,244
(100)1,144
$ in millions
144
Building a case for value
► 2007 financial update
► 2008 financial outlook
► Cash flow and capital structure strategy
► Case for improved value creation
145
2008 business outlook
► Continued strong global demand► Incremental acetic acid volume
associated with China expansion► VAM and acetic anhydride production scheduled to
begin in Nanjing► Prices expected to adjust in 2008
Acetyl Intermediates
► Volume growth >2x GDP across both transportation and non-transportation applications
► Aggressive cost control offsets continued high energy and raw material costs
► Significant progress expected in Nanjing production capabilities
Advanced Engineered Materials
► Synergy capture from APL integration► Strong underlying business fundamentals
Consumer Specialties
► High raw material costs continue► Realize benefits from revitalization efforts► Emulsions production in Nanjing
Industrial Specialties
2008 Guidance:
Adjusted EPS $3.35 to $3.65
Operating EBITDA$1,280 to $1,350 million
Forecasted 2008 adjusted tax rate of
26%
2008 Guidance:
Adjusted EPS $3.35 to $3.65
Operating EBITDA$1,280 to $1,350 million
Forecasted 2008 adjusted tax rate of
26%
146
2006 Base 2006Methanol
2007Strategy
2008Strategy
2008E 2008EOutlookRange
► Continue to deliver on growth objectives –expect to realize >50% of objectives by 2008
► Operational Excellence expected to more than offset inflation
► Outlook range reflects potential fluctuation in economic/market conditions
2008 ExpectationsOperating EBITDA
Accelerating strategic growth objectives in 2008 from 2006 baseline
85 - 90
120 - 130
(52)
1,144
~1,3151,280 - 1,350
$ in millions
147
2008 guidance
Additional Items► Affiliate Income1
$175 – $185 million
► Net Interest2$200 – $210 million
► Depreciation and Amortization $300 – $310 million
► Share Count169 million
1 Cost dividends and equity earnings2 Net cash interest and interest expense
► Estimated Adjusted Tax Rate for Adjusted EPS
26%
► Cash Taxes$100 – $120 million
► Capital Expenditure$280 – $300 million
148
Building a case for value
► 2007 financial update
► 2008 financial outlook
► Cash flow and capital structure strategy
► Case for improved value creation
149
Strong cash flow generation continues
► Strong operating results
► Lower cash taxes► Working capital
productivity► 2008 estimate
excludes Kelsterbachrelocation
Adjusted Free Cash Flow1
2006 2007E 2008E
458
~400
500 - 550
1 Adjusted free cash flow calculated as cash flow from operations less capital expenditures less other productive asset purchases less operating cash from discontinued operations plus certain other charges
$ in
milli
ons
150
14%
Difficulty of Realizing Value/Skills or Competencies Required
Low HighLow
High
Bias for growth and high-return projectsR
etur
n on
Cap
ital D
eplo
yed/
Va
lue
Cre
atio
n
► Dividend
► Debt repayment
► Hold cash
Returning Cash to Shareholders
► Asset expansion – low growth area
► Share repurchase
Returning Cost of Capital
► Cost reduction & revitalization projects
► Asset expansion – high growth area
► Core/bolt-on acquisitions
Significant Value Creation
~75% of Capital
Deployed Since 2005
151
Cost Reduction & Revitalization
ProjectsGrowth Projects Core/Bolt-on
Acquisitions
Cash flow and capital structure strategy
Share Repurchase Dividends Debt
Repayment
Execute Growth Strategy Optimize Capital Structure
Cash Available for Strategic Use
► Cost► Stability► Flexibility► Maximize shareholder value
Capital Structure Objectives► Aligned with Strategic Pillars► 2 – 4 year simple payback period► > 20 – 50% ROIC
Investment Criteria
152
Effective use of cash to create shareholder value in 2007
Execute Growth Strategy~$400 million
Optimize Capital Structure ~$875 million
~$140 million
► APL for ~$110 million
► ~$30 millionadditional spend for synergies
~$60 million► Industrial
Specialties revitalization
► SG&A improvement
► Energy reduction programs
~$400 million
► ~$70 million Dutch Auction
► ~$330 million open-market repurchase
~$35 million
► Common and preferred dividends
~$440 million
► ~$200 million debt reduction
► $240 million high-yield debt refinancing costs
~$190 million
► Primarily Nanjing
► High-return projects
Cash Available for Strategic Use ~$1,275 million
Includes Oxo Divestiture Net Proceeds ~$580 million
Cost Reduction & Revitalization
ProjectsGrowth Projects Core/Bolt-on
AcquisitionsShare
Repurchase Dividends DebtRepayment
153
Current credit structure near investment grade
Cost► LIBOR +175 bps (step-down to 150 bps)► Reduced annual interest cost by $50 -
$60 million
► “Covenant-lite” structure supports growth strategy and flexibility to return cash to shareholders
Stability
Flexibility
► Term loan maturity not until 2014► Annual term loan amortization 1%
($28 million)
Result of Capital Structure Optimization
154
Improved leverage profile reduces risk and increases earnings
► Decrease in overall borrowing costs since 2005
► Continued improvement in interest coverage ratio
► Improved capital flexibility
► Further debt reduction provides minimal value at this time
4.3x
6.3x5.9x
4.9x
0x
1x
2x
3x
4x
5x
6x
7x
2005 2006 2007E 2008E
Operating EBITDA/Net Interest
6.9%
8.0% Borrowing Rate
155
17%
22% 23%
24%
10%
15%
20%
25%
2005 2006 2007E 2008E
► Improvement in credit statistics
► Current performance at or above BB credit rating
► Financial performance and growth plans support current capital structure
1Adjusted FFO (Funds from Operations) equals Net Income plus D&A, Deferred Taxes, Non-Cash Charges, Adjustment for Pension/OPEB and Operating Leases2Adjusted Total Debt equals Reported Debt plus After-tax Unfunded Pension/OPEB Obligations and Operating Lease Adjustments
BB
BB -
Adjusted FFO1/Adjusted Total Debt2
Improved credit performance – primed for upgrade
156
Capital structure and cash flow summary
Operating EBITDA Growth Objectives
0
200
400
2007 2008 2009 2010AI CIS AEM
Clear Growth Objectives
Improved Shareholder Value
Operating EBITDA/Net Interest
Increased Financial Flexibility
Operating EBITDA Margin
Improved Portfolio Performance
11%10%
11% 11%
17%19%
16%15% 15%
17%19%
20%19%
16%
20%
5%
10%
15%
20%
2000 2001 2002 2003 2004 2005 2006 2007EAs ReportedPro Forma for Current Portfolio
4.3x
6.3x5.9x
4.9x
0x
1x
2x
3x
4x
5x
6x
7x
2005 2006 2007E 2008E
$ in
mill
ions
157
Building a case for value
► 2007 financial update
► 2008 financial outlook
► Cash flow and capital structure strategy
► Case for improved value creation
158
Additional value in affiliates
$20
$50
$10
$5
2007EUnreported
ProportionalEBITDA
$85$20
$30
$15
$15
2007EReported
Equity Earnings
$80$165
$40
$80
$25
$20
2007EProportional
EBITDA
Subtotal
AI<50%Infraservs
AEM45%Polyplastics
AEM50%Korea Engineered Plastics
AEM50%Fortron Industries
Reporting Segment
Celanese OwnershipAffiliate
Equity Affiliates
Total EBITDA
from Affiliates
$275$1902007E Total Reported
CIS30-31%Acetate China Ventures
AI25%Ibn Sina
Reporting Segment
Celanese OwnershipAffiliate
Cost Affiliates 2007E Cash
Dividends
Subtotal $110$36
$74
159
5%
4% 4% 4%5%
7%
DOW PPG EMN ROH FMC CE
3Yr Avg FCF Yield2
14% 15% 14%
18%20% 20%
DOW PPG EMN ROH FMC CE
3Yr Avg EBITDA/Sales2
12%9%
14%
20%
15%
28%
DOW PPG EMN ROH FMC CE
Asia % of Sales1
45%
66%
53% 52%45%
28%
DOW PPG EMN ROH FMC CE
North America % of Sales1
-6%
8%
-4%
3%
12%10%
DOW PPG EMN ROH FMC CE
3Yr Avg EBITDA Growth2
14% 15% 14%18%
20% 20%
DOW PPG EMN ROH FMC CE
3Yr Avg EBITDA/Sales2
-6%
8%
-4%
3%
12% 10%
DOW PPG EMN ROH FMC CE
3Yr Avg EBITDA Growth2
5%4% 4% 4%
5%
7%
DOW PPG EMN ROH FMC CE
3Yr Avg FCF Yield2
45%
66%53% 52%
45%
28%
DOW PPG EMN ROH FMC CE
North America % of Sales1
12%9%
14%
20%
15%
28%
DOW PPG EMN ROH FMC CE
Asia % of Sales1
Case for improved valuation
1Banc of America Securities LLC estimates2Thompson Financial as of December 7, 2007, Company reports, Celanese estimates
12.1 12.4 13.4 14.7 14.3
11.0
DOW PPG EMN ROH FMC CE
Forward P/E2
160
P/E
Significant shareholder value upside continues to exist for Celanese
► Building a premier portfolio► Pursuing aggressive and sustainable earnings growth► Generating significant cash flow for reinvestment at very attractive returns
1Thompson Financial as of December 7, 2007, Company reports, Celanese estimates
P/E and EV/EBITDA Multiples (based on 2008E)1
Stock Price Based on Celanese 2008 Adjusted EPS $3.35 – $3.65
Current Share Price: $39.781
EV/E
BIT
DA
0
2
4
6
8
10
EV/EBITDA Premier P/E Premier0
5
10
15
20
25 $58
$52
161
Key takeaways from today’s meeting
► Portfolio is stronger, more resilient
► It’s the model – not the molecule
► Ahead of expectations and growth objectives
► More earnings growth opportunities identified
► Celanese culture: enabler
162
Appendix
163
Reg G: Reconciliation of Diluted Adjusted EPS
Adjusted Earnings Per Share - Reconciliation of a Non-U.S. GAAP Measure
(in $ millions, except per share data) 2007 2006 2007 2006Earnings (loss) from continuing operations before tax and minority interests 131 150 134 401 Non-GAAP Adjustments: Other charges and other adjustments 1 40 16 206 77 Refinancing costs - 254 - Adjusted earnings from continuing operations before tax and minority interests 171 166 594 478 Income tax provision on adjusted earnings 2 (48) (42) (166) (129)Minority interests - (2) - (3)Adjusted earnings from continuing operations 123 122 428 346Preferred dividends (2) (3) (7) (8)Adjusted net earnings available to common shareholders 121 119 421 338Add back: Preferred dividends 2 3 7 8Adjusted net earnings for adjusted EPS 123 122 428 346
Diluted shares (millions)Weighted average shares outstanding 150.2 158.6 155.4 158.6Assumed conversion of Preferred Shares 12.0 12.0 12.0 12.0 Assumed conversion of Restricted Stock 0.4 - 0.3 - Assumed conversion of stock options 4.8 0.6 4.4 1.0 Total diluted shares 167.4 171.2 172.1 171.6Adjusted EPS 0.73 0.71 2.49 2.021 See Reconciliation of Other Charges and Other Adjustments.2 The adjusted tax rate for the three and nine months ended September 30, 2007 is 28% based on the original full year 2007 guidance.
Nine Months EndedSeptember 30,
Three Months EndedSeptember 30,
164
Reg G: Reconciliation of Net Debt
Net Debt – Reconciliation of a Non-U.S. GAAP Measure
September 30, December 31,(in $ millions) 2007 2006Short-term borrowings and current installments of long-term debt - third party and affiliates 243 309Long-term debt 3,252 3,189Total debt 3,495 3,498Less: Cash and cash equivalents 531 791Net Debt 2,964 2,707
165
Reg G: Reconciliation of Other Charges and Other Adjustments
Reconciliation of Other Charges and Other AdjustmentsOther Charges:
(in $ millions) 2007 2006 2007 2006Employee termination benefits 2 - 27 11 Plant/office closures 4 - 4 - Insurance recoveries associated with plumbing cases (2) - (2) (3)Long-term compensation triggered by Exit Event - - 74 - Asset impairments 6 - 9 - Ticona Kelsterbach relocation 1 - 4 - Other 1 - 2 4 Total 12 - 118 12
Other Adjustments: 1
(in $ millions) 2007 2006 2007 2006Executive severance & other costs related to Squeeze-Out (1) 5 - 28 Ethylene Pipeline Exit - - 10 Business Optimization 5 4 10 4 Foreign exchange loss related to refinancing transaction 13 - 22 - AT Plastics films sale 7 - 7 - Discontinued Methanol production 2 - 10 31 36Other 4 (3) 8 (3) Total 28 16 88 65
Total other charges and other adjustments 40 16 206 77 1 These items are included in net earnings but not included in other charges.2 Adjusted earnings per share included earnings from its discontinued methanol production which was included in the company's 2007 guidance.
September 30, September 30,
Three Months Ended Nine Months Ended
Three Months Ended Nine Months Ended
September 30, September 30,
166
Reg G: Equity Affiliate DataE
quity
Aff
iliat
e P
relim
inar
y R
esul
ts -
Tota
l - U
naud
ited
(in $
mill
ions
)20
0720
0620
0720
06N
et S
ales
Tico
na A
ffilia
tes1
315
291
934
862
Infra
serv
242
2
34
6
1,
175
1,01
0To
tal
737
637
2,10
91,
872
Ope
ratin
g P
rofit
Tico
na A
ffilia
tes
55
42
148
130
Infra
serv
19
16
6147
Tota
l74
58
20
917
7
Dep
reci
atio
n an
d A
mor
tizat
ion
Tico
na A
ffilia
tes
12
13
3935
Infra
serv
21
20
6159
Tota
l33
33
10
094
Aff
iliat
e E
BIT
DA
3
Tico
na A
ffilia
tes
67
55
187
165
Infra
serv
40
36
122
106
Tota
l10
7
91
30
927
1
Net
Inco
me
Tico
na A
ffilia
tes
38
29
9885
Infra
serv
19
10
5938
Tota
l57
39
15
712
3
Net
Deb
tTi
cona
Affi
liate
s14
2
(2
5)
14
2(2
5)In
frase
rv5
35
5
35To
tal
147
10
147
10
Equ
ity A
ffili
ate
Pre
limin
ary
Res
ults
- C
elan
ese
Pro
port
iona
l Sha
re -
Una
udite
d4
(in $
mill
ions
)20
0720
0620
0720
06N
et S
ales
Tico
na A
ffilia
tes
145
134
432
399
Infra
serv
135
78
388
394
Tota
l28
0
21
2
82
079
3
Ope
ratin
g P
rofit
Tico
na A
ffilia
tes
25
20
7062
Infra
serv
6
5
2016
Tota
l31
25
90
78
Dep
reci
atio
n an
d A
mor
tizat
ion
Tico
na A
ffilia
tes
6
6
1817
Infra
serv
6
6
2019
Tota
l12
12
38
36
Aff
iliat
e E
BIT
DA
3
Tico
na A
ffilia
tes
31
26
8878
Infra
serv
12
11
3934
Tota
l43
37
12
711
2
Equ
ity in
net
ear
ning
s of
aff
iliat
es (a
s re
port
ed o
n th
e In
com
e S
tate
men
t)
Tico
na A
ffilia
tes
18
13
4739
Infra
serv
6
4
1814
Tota
l24
17
65
53
Aff
iliat
e E
BIT
DA
in e
xces
s of
Equ
ity in
net
ear
ning
s of
aff
iliat
es5
Tico
na A
ffilia
tes
13
13
4139
Infra
serv
6
7
2120
Tota
l19
20
62
59
Net
Deb
tTi
cona
Affi
liate
s62
(1
3)
62
(13)
Infra
serv
3
13
313
Tota
l65
-
65-
1 Tic
ona
Affi
liate
s in
clud
es P
olyP
last
ics
(45%
ow
ners
hip)
, Kor
ean
Eng
inee
ring
Pla
stic
s(50
%) a
nd F
ortro
n In
dust
ries(
50%
)2 In
frase
rv in
clud
es In
frase
rv E
ntiti
es v
alue
d as
equ
ity in
vest
men
ts (I
nfra
serv
Höc
hst G
roup
- 3
1% o
wne
rshi
p, In
frase
rv G
endo
rf - 3
9% a
nd In
frase
rv K
naps
ack
27%
)3 A
ffilia
te E
BIT
DA
is th
e su
m o
f Ope
ratin
g P
rofit
and
Dep
reci
atio
n an
d A
mor
tizat
ion,
a n
on-U
.S. G
AA
P m
easu
res
4 Cal
cula
ted
as th
e pr
oduc
t of f
igur
es fr
om th
e ab
ove
tabl
e tim
es C
elan
ese
owne
rshi
p pe
rcen
tage
5 Pro
duct
of C
elan
ese
prop
ortio
n of
Affi
liate
EB
ITD
A le
ss E
quity
in n
et e
arni
ngs
of a
ffilia
tes;
not
incl
uded
in C
elan
ese
oper
atin
g E
BIT
DA
Thre
e M
onth
s E
nded
Nin
e M
onth
s E
nded
Sep
tem
ber
30,
Sep
tem
ber
30,
Thre
e M
onth
s E
nded
Sep
tem
ber
30,
Nin
e M
onth
s E
nded
Sep
tem
ber
30,
167
Reg G: Reconciliation of Operating EBITDA
Segm
ent D
ata
and
Rec
onci
liatio
n of
Ope
ratin
g Pr
ofit
(Los
s) to
Ope
ratin
g EB
ITD
A -
a
Non
-U.S
. GAA
P M
easu
re.
(in $
mill
ions
) 20
0720
0620
0720
06N
et S
ales
Adv
ance
d E
ngin
eere
d M
ater
ials
258
230
777
69
1
Con
sum
er S
peci
altie
s28
2
213
83
2
652
I
ndus
trial
Spe
cial
ties
314
335
1,01
5
97
2
Ace
tyl I
nter
med
iate
s85
987
22,
532
2,52
0
O
ther
Act
iviti
es 1
65
2
16
I
nter
segm
ent e
limin
atio
ns(1
46)
(184
)(4
74)
(503
)
To
tal
1,57
31,
471
4,68
4
4,
348
Ope
ratin
g Pr
ofit
(Los
s) A
dvan
ced
Eng
inee
red
Mat
eria
ls35
37
10
3
116
C
onsu
mer
Spe
cial
ties
34
35
130
12
4
Ind
ustri
al S
peci
altie
s(9
)
17
2
35
Ace
tyl I
nter
med
iate
s11
7
126
34
0
349
O
ther
Act
iviti
es 1
(30)
(4
3)
(151
)
(1
44)
Tota
l14
7
172
42
4
480
Equi
ty E
arni
ngs
and
Oth
er In
com
e/(E
xpen
se) 2
Adv
ance
d E
ngin
eere
d M
ater
ials
18
14
48
42
Con
sum
er S
peci
altie
s2
-
37
22
I
ndus
trial
Spe
cial
ties
-
-
-
(1
)
Ace
tyl I
nter
med
iate
s28
18
51
40
O
ther
Act
iviti
es 1
(10)
10
(8
)
10
To
tal
38
42
128
11
3
Oth
er C
harg
es a
nd O
ther
Adj
ustm
ents
3
Adv
ance
d E
ngin
eere
d M
ater
ials
-
-
5
(4
)
Con
sum
er S
peci
altie
s2
-
11
-
Ind
ustri
al S
peci
altie
s14
3
33
14
Ace
tyl I
nter
med
iate
s2
10
59
36
Oth
er A
ctiv
ities
122
3
98
31
Tota
l40
16
20
6
77
Dep
reci
atio
n an
d Am
ortiz
atio
n Ex
pens
e A
dvan
ced
Eng
inee
red
Mat
eria
ls17
16
51
48
C
onsu
mer
Spe
cial
ties
15
9
39
29
I
ndus
trial
Spe
cial
ties
13
16
43
45
Ace
tyl I
nter
med
iate
s31
23
81
78
O
ther
Act
iviti
es 1
1
2
4
5
Tota
l77
66
21
8
205
Ope
ratin
g EB
ITD
A A
dvan
ced
Eng
inee
red
Mat
eria
ls70
67
20
7
202
C
onsu
mer
Spe
cial
ties
53
44
217
17
5
Ind
ustri
al S
peci
altie
s18
36
78
93
A
cety
l Int
erm
edia
tes
178
17
7
531
50
3
Oth
er A
ctiv
ities
1(1
7)
(28)
(5
7)
(98)
To
tal
302
29
6
976
87
5
1 O
ther
Act
iviti
es p
rimar
ily in
clud
es c
orpo
rate
sel
ling,
gen
eral
and
adm
inis
trativ
e ex
pens
es
and
the
resu
lts fr
om c
aptiv
e in
sura
nce
com
pani
es.
2 I
nclu
des
equi
ty e
arni
ngs
from
affi
liate
s, d
ivid
ends
from
cos
t inv
estm
ents
and
oth
er in
com
e/(e
xpen
se)
3 E
xclu
des
adju
stm
ents
to m
inor
ity in
tere
st, n
et in
tere
st, t
axes
, dep
reci
atio
n, a
mor
tizat
ion
and
disc
ontin
ued
oper
atio
ns.
Thre
e M
onth
s En
ded
Sept
embe
r 30,
Nin
e M
onth
s En
ded
Sept
embe
r 30,
168
Reg G: Reconciliation of Operating EBITDA
Segm
ent D
ata an
d Rec
oncil
iation
of O
pera
ting P
rofit
(Los
s) to
Ope
ratin
g EBI
TDA
- a N
on-U
.S. G
AAP
Meas
ure -
Una
udite
d Twelv
e Mon
ths E
nded
Marc
h 31,
June
30,
Sept
embe
r 30,
Dece
mber
31,
Dece
mber
31,
(in $
millio
ns)
2005
2005
2005
2005
2005
Net S
ales
Adv
ance
d Eng
ineer
ed M
ateria
ls23
9
22
3
21
2
21
3
88
7
C
onsu
mer S
pecia
lties
212
219
208
200
839
Indu
strial
Spe
cialtie
s20
6
26
3
30
5
28
6
1,0
60
Ace
tyl In
terme
diates
690
707
731
783
2,911
O
ther A
ctivit
ies 1
12
8
6
6
32
Inter
segm
ent e
limina
tions
(95)
(99)
(113)
(153)
(460)
To
tal1,2
64
1,321
1,3
49
1,335
5,2
69
Oper
ating
Pro
fit (L
oss)
Adv
ance
d Eng
ineer
ed M
ateria
ls39
5
18
(2)
60
Con
sume
r Spe
cialtie
s24
27
21
56
12
8
In
dustr
ial S
pecia
lties
-
5
5
(14)
(4)
A
cetyl
Inter
media
tes14
3
12
1
76
146
486
Othe
r Acti
vities
1(83
)
(33
)
(38
)
(30
)
(18
4)
Total
123
125
82
15
6
48
6
Equit
y Ear
nings
and O
ther
Inco
me/(E
xpen
se) 2
Adv
ance
d Eng
ineer
ed M
ateria
ls12
16
15
11
54
Con
sume
r Spe
cialtie
s-
2
(2)
3
3
In
dustr
ial S
pecia
lties
-
-
-
-
-
Ace
tyl In
terme
diates
12
(10
)
32
35
69
Othe
r Acti
vities
1(8)
18
(2)
5
13
To
tal16
26
43
54
13
9
Othe
r Cha
rges
and O
ther
Adju
stmen
ts 3
Adv
ance
d Eng
ineer
ed M
ateria
ls1
20
4
6
31
C
onsu
mer S
pecia
lties
1
-
10
(24
)
(13
)
In
dustr
ial S
pecia
lties
-
2
8
1
11
A
cetyl
Inter
media
tes19
11
15
(30)
15
O
ther A
ctivit
ies 1
45
(10
)
2
3
40
Total
66
23
39
(44
)
84
Depr
eciat
ion an
d Amo
rtiza
tion E
xpen
se A
dvan
ced E
ngine
ered
Mate
rials
15
14
13
18
60
C
onsu
mer S
pecia
lties
12
12
7
11
42
Indu
strial
Spe
cialtie
s12
11
7
17
47
A
cetyl
Inter
media
tes17
24
35
34
11
0
O
ther A
ctivit
ies 1
2
2
4
1
9
Total
58
63
66
81
268
Oper
ating
EBI
TDA*
Adv
ance
d Eng
ineer
ed M
ateria
ls67
55
50
33
20
5
C
onsu
mer S
pecia
lties
37
41
36
46
160
Indu
strial
Spe
cialtie
s12
18
20
4
54
A
cetyl
Inter
media
tes19
1
14
6
15
8
18
5
68
0
O
ther A
ctivit
ies 1
(44)
(23)
(34)
(21)
(122)
To
tal26
3
23
7
23
0
24
7
97
7
*Q
uarte
rly ea
rning
s for
the d
iscon
tinue
d Edm
onton
Meth
anol
18
10
4
3
35
oper
ation
s hav
e bee
n inc
luded
in O
ther C
harg
es an
d Othe
r Adju
stmen
ts.
Oxo A
lcoho
l Dive
stitu
re22
28
22
9
81
To
tal O
pera
ting E
BITD
A - a
s rep
orted
285
265
252
256
1,058
1 Othe
r Acti
vities
prim
arily
inclu
des c
orpo
rate
sellin
g, ge
nera
l and
admi
nistra
tive e
xpen
ses a
nd th
e res
ults f
rom
capti
ve in
sura
nce c
ompa
nies.
2 Inclu
des e
quity
earn
ings f
rom
affilia
tes, d
ivide
nds f
rom
cost
inves
tmen
ts an
d othe
r inco
me/(e
xpen
se).
3 Exc
ludes
adjus
tmen
ts to
mino
rity in
teres
t, net
inter
est, t
axes
, dep
recia
tion,
amor
tizati
on an
d disc
ontin
ued o
pera
tions
.
Thre
e Mon
ths E
nded
169
Reg G: Reconciliation of Operating EBITDA
Segm
ent D
ata an
d Re
conc
iliatio
n of
Ope
ratin
g Pr
ofit
(Los
s) to
Ope
ratin
g EB
ITDA
- a N
on-U
.S. G
AAP
Meas
ure -
Una
udite
d Twelv
e Mon
ths E
nded
Marc
h 31
,Ju
ne 30
,Se
ptem
ber 3
0,De
cem
ber 3
1,De
cem
ber 3
1,(in
$ m
illion
s)
2006
2006
2006
2006
2006
Net S
ales
Adv
ance
d Eng
ineer
ed M
ateria
ls23
1
23
0
23
0
22
4
91
5
C
onsu
mer S
pecia
lties
216
223
213
224
876
Ind
ustria
l Spe
cialtie
s31
1
32
6
33
5
30
9
1,2
81
Ace
tyl In
terme
diates
809
839
872
831
3,351
O
ther A
ctivit
ies 1
5
6
5
6
22
In
terse
gmen
t elim
inatio
ns(1
52)
(167
)
(1
84)
(164
)
(6
67)
To
tal
1,420
1,4
57
1,471
1,4
30
5,778
Oper
atin
g Pr
ofit
(Los
s) A
dvan
ced E
ngine
ered
Mate
rials
41
38
37
29
145
Con
sume
r Spe
cialtie
s42
47
35
41
16
5
I
ndus
trial S
pecia
lties
15
3
17
9
44
A
cetyl
Inter
media
tes10
3
12
0
12
6
10
7
45
6
O
ther A
ctivit
ies 1
(45)
(56)
(43)
(46)
(190
)
Tota
l15
6
15
2
17
2
14
0
62
0
Equi
ty Ea
rnin
gs an
d Ot
her I
ncom
e/(Ex
pens
e) 2
Adv
ance
d Eng
ineer
ed M
ateria
ls14
14
14
13
55
Con
sume
r Spe
cialtie
s-
22
-
2
24
I
ndus
trial S
pecia
lties
-
(1)
-
-
(1
)
A
cetyl
Inter
media
tes7
15
18
23
63
O
ther A
ctivit
ies 1
3
(3)
10
12
22
Tota
l24
47
42
50
16
3
Othe
r Cha
rges
and
Othe
r Adj
ustm
ents
3
Adv
ance
d Eng
ineer
ed M
ateria
ls(2
)
(2)
-
(1
)
(5)
Con
sume
r Spe
cialtie
s-
-
-
-
-
I
ndus
trial S
pecia
lties
1
10
3
2
16
Ace
tyl In
terme
diates
12
14
10
16
52
O
ther A
ctivit
ies 1
13
15
3
(2)
29
Tota
l24
37
16
15
92
Depr
eciat
ion
and
Amor
tizati
on E
xpen
se A
dvan
ced E
ngine
ered
Mate
rials
16
16
16
17
65
C
onsu
mer S
pecia
lties
11
9
9
10
39
I
ndus
trial S
pecia
lties
14
15
16
14
59
A
cetyl
Inter
media
tes23
32
23
23
10
1
O
ther A
ctivit
ies 1
1
2
2
-
5
Tota
l65
74
66
64
26
9
Oper
atin
g EB
ITDA
* A
dvan
ced E
ngine
ered
Mate
rials
69
66
67
58
260
Con
sume
r Spe
cialtie
s53
78
44
53
22
8
I
ndus
trial S
pecia
lties
30
27
36
25
118
Ace
tyl In
terme
diates
145
181
177
169
672
Othe
r Acti
vities
1(2
8)
(4
2)
(2
8)
(3
6)
(1
34)
To
tal
269
310
296
269
1,144
*Q
uarte
rly ea
rning
s for
the d
iscon
tinue
d Edm
onton
Meth
anol
14
12
10
16
52
oper
ation
s hav
e bee
n inc
luded
in O
ther C
harg
es an
d Othe
r Adju
stmen
ts.
Oxo
Alco
hol D
ivest
iture
**-
-
26
39
65
Tota
l Ope
ratin
g EB
ITDA
- as
repo
rted
269
310
322
308
1,209
**F
or co
mpar
ative
purp
oses
. Th
e Oxo
Alco
hol D
ivesti
ture w
as re
flecte
d as a
disc
ontin
ued o
pera
tion f
or th
e thr
ee m
onths
ende
d Mar
ch 31
, 200
6 and
June
30, 2
006
in co
njunc
tion w
ith re
portin
g the
resu
lts fo
r the
first
and s
econ
d qua
rter o
f 200
7.
1 Othe
r Acti
vities
prim
arily
inclu
des c
orpo
rate
sellin
g, ge
nera
l and
admi
nistra
tive
expe
nses
and
the r
esult
s fro
m ca
ptive
insu
ranc
e co
mpan
ies.
2 Inc
ludes
equ
ity e
arnin
gs fr
om a
ffiliat
es, d
ivide
nds f
rom
cost
inves
tmen
ts an
d othe
r inc
ome/
(exp
ense
).3 E
xclud
es ad
justm
ents
to m
inorit
y inte
rest,
net in
tere
st, ta
xes,
depr
eciat
ion, a
mortiz
ation
and
disc
ontin
ued o
pera
tions
.
Thre
e Mon
ths E
nded
170
Reg G: Reconciliation of Operating EBITDA
Segm
ent D
ata
and
Reco
ncili
atio
n of
Ope
ratin
g Pr
ofit
(Los
s) to
Ope
ratin
g EB
ITDA
- a
Non-
U.S.
GAA
P M
easu
re -
Unau
dite
d
Six
Mon
ths
Ende
dM
arch
31,
June
30,
June
30,
(in $
milli
ons)
20
0720
0720
07Ne
t Sal
es A
dvan
ced
Engi
neer
ed M
ater
ials
262
257
519
C
onsu
mer
Spe
cial
ties
269
281
550
I
ndus
trial
Spe
cial
ties
346
355
701
A
cety
l Int
erm
edia
tes
839
834
1,67
3
O
ther
Act
ivitie
s 1
1
(5)
(4
)
I
nter
segm
ent e
limin
atio
ns(1
62)
(1
66)
(3
28)
Tota
l1,
555
1,
556
3,
111
Ope
ratin
g Pr
ofit
(Los
s) A
dvan
ced
Engi
neer
ed M
ater
ials
36
32
68
Con
sum
er S
peci
altie
s48
48
96
I
ndus
trial
Spe
cial
ties
12
(1
)
11
Ace
tyl I
nter
med
iate
s13
2
91
223
O
ther
Act
ivitie
s 1
(22)
(99)
(121
)
To
tal
206
71
27
7
Equi
ty E
arni
ngs
and
Oth
er In
com
e/(E
xpen
se) 2
Adv
ance
d En
gine
ered
Mat
eria
ls14
16
30
C
onsu
mer
Spe
cial
ties
-
35
35
I
ndus
trial
Spe
cial
ties
-
-
-
A
cety
l Int
erm
edia
tes
5
18
23
O
ther
Act
ivitie
s 1
4
(2)
2
Tota
l23
67
90
Oth
er C
harg
es a
nd O
ther
Adj
ustm
ents
3
Adv
ance
d En
gine
ered
Mat
eria
ls-
5
5
Con
sum
er S
peci
altie
s1
8
9
Ind
ustri
al S
peci
altie
s-
19
19
Ace
tyl I
nter
med
iate
s46
11
57
O
ther
Act
ivitie
s 1
4
72
76
To
tal
51
11
5
16
6
Depr
ecia
tion
and
Amor
tizat
ion
Expe
nse
Adv
ance
d En
gine
ered
Mat
eria
ls17
17
34
C
onsu
mer
Spe
cial
ties
11
13
24
Ind
ustri
al S
peci
altie
s14
16
30
A
cety
l Int
erm
edia
tes
24
26
50
Oth
er A
ctivi
ties
12
1
3
Tota
l68
73
14
1
Ope
ratin
g EB
ITDA
* A
dvan
ced
Engi
neer
ed M
ater
ials
67
70
137
C
onsu
mer
Spe
cial
ties
60
10
4
16
4
Ind
ustri
al S
peci
altie
s26
34
60
A
cety
l Int
erm
edia
tes
207
146
353
O
ther
Act
ivitie
s 1
(12)
(28)
(40)
To
tal
348
326
674
*Q
uarte
rly e
arni
ngs
for t
he d
isco
ntin
ued
Edm
onto
n M
etha
nol
33
(2
)
31
oper
atio
ns h
ave
been
incl
uded
in O
ther
Cha
rges
and
Oth
er A
djus
tmen
ts.
1 O
ther
Act
iviti
es p
rimar
ily in
clud
es c
orpo
rate
sel
ling,
gen
eral
and
adm
inis
trativ
e ex
pens
es a
nd th
e re
sults
from
cap
tive
insu
ranc
e co
mpa
nies
.2 I
nclu
des
equi
ty e
arni
ngs
from
affi
liate
s, d
ivid
ends
from
cos
t inv
estm
ents
and
oth
er in
com
e/(e
xpen
se).
3 E
xclu
des
adju
stm
ents
to m
inor
ity in
tere
st, n
et in
tere
st, t
axes
, dep
reci
atio
n, a
mor
tizat
ion
and
disc
ontin
ued
oper
atio
ns.
Thre
e M
onth
s En
ded
171
Reg G: Reconciliation of 2000 – 2006 Operating EBITDA
Advanced Engineered Materials 2000 2001 2002 2003 2004 2005 2006GAAP Operating Profit 90 (13) 23 136 19 60 145 Depreciation & Amortization 69 68 60 63 64 60 65 Other Charges & Other Adjustments (27) (8) 8 (97) 67 31 (5) Equity Earnings and Other Income/(Expense) 15 5 17 32 26 54 55 Operating EBITDA 147 52 108 134 176 205 260
Total Celanese 2000 2001 2002 2003 2004 2005 1 2006 1
GAAP Operating Profit 78 (470) 162 133 130 573 747 Depreciation & Amortization 364 372 300 328 256 285 283 Other Charges & Other Adjustments 27 472 (1) 6 340 50 40 Equity Earnings and Other Income/(Expense) 58 58 58 92 75 150 174 Operating EBITDA 528 432 519 559 801 1,058 1,244
Net Sales 4,888 4,537 4,535 5,133 5,069 6,070 6,656 Operating EBITDA Margin 11% 10% 11% 11% 16% 17% 19%
Portfolio Adjustment 5% 5% 4% 6% 3% 3% 0%Pro Forma EBITDA Margin for Current Portfolio 16% 15% 15% 17% 19% 20% 19%
1Amounts as reported in the 4Q 2006 earnings release
172
Reg G: Other Items
Adjusted Total Debt
2005 2006Total Debt 3,437 3,498 Unfunded PBO 804 541 Unfunded PBO at 65% 523 352 Unfunded OPEB Obligation 377 343 Unfunded OPEB at 65% 245 223 Lease Adjustments 558 654 Adjusted Total Debt 4,763 4,727
Adjusted Funds from Operations
2000 2001 2002 2003 2004 2005 2006Net cash provided by/(used in) operating activities 55 462 363 401 (164) 701 751 Capital expenditures (221) (191) (203) (211) (204) (212) (244) Other productive asset purchases - - - - - - (41) Other charges and other adjustments 322 - (16) 5 552 56 (8) Adjusted Free Cash Flow 156 271 144 195 184 545 458
2000 – 2006 Adjusted Free Cash Flow
2005 2006Net Income 277 406Depreciation & Amortization 285 283Deferred Income Taxes (85) 125Other Non-Cash Adjustments 204 96Operating Lease Expenses 93 109Periodic Benefit Costs 43 42Adjusted Funds From Operations 817 1,061