3. Agenda
Celanese Corporation 2007 Investor Day
7:30 a.m. Registration & Continental Breakfast
8:30 a.m. Introduction/Agenda
Mark Oberle, Vice President, Investor Relations and Public Affairs
8:35 a.m. Pursue. Premier.
David Weidman, Chairman & CEO
9:00 a.m. Advanced Engineered Materials
Sandra Beach Lin, Executive Vice President and President, Ticona
9:25 a.m. Consumer and Industrial Specialties
Doug Madden, President, Acetate, AT Plastics and Emulsions & PVOH
9:50 a.m. Morning Break
10:00 a.m. Acetyl Intermediates
John J. Gallagher III, Executive Vice President and President, Acetyls and Celanese Asia
10:25 a.m. Global Operational Excellence
Jim Alder, Senior Vice President, Operations & Technical
10:50 a.m. Value Creation
Steven Sterin, Senior Vice President and Chief Financial Officer
11:15 a.m. Closing Comments & Final Q&A
David Weidman, Chairman & CEO
12:00 p.m. Luncheon
3
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
4
6. Who is Celanese?
Superior Value Creation
Strategy
► Industry Leader
Clear focus on growth and
value creation
● Geographically balanced
global positions
Culture Leading Global ● Diversified end market
Strong performance Integrated Producer exposure
built on shared of Chemicals and
► Strong Cash Generation
principles and
Advanced Materials
objectives
► Significant Growth
Capability
Execution ● Track record of execution
Demonstrated track record
● Clearly defined
of delivering results
opportunities
6
7. A leading global integrated producer
Celanese
2007 Revenue1: $6.5B
2007 Op. EBITDA Margin (est.): ~20%
Advanced Engineered Consumer and Industrial
Acetyl Intermediates
Materials Specialties
2007 Revenue1: 2007 Revenue1: 2007 Revenue1:
$1.0 B $2.5 B $3.0 B
2007 Op. EBITDA Margin (est.):~25% 2007 Op. EBITDA Margin (est.):~15% 2007 Op. EBITDA Margin (est.):~25%
► ► ►
Leading global producer Leading global producer Leading global integrated
of engineered polymers of cellulose acetate producer of acetyl products
products
► ►
Strategic affiliates in Asia Significant presence in all
► Leading global producer three major regions
of vinyl emulsion
products
1 Represents 2007 estimated third party net sales
7
8. An attractive intermediate and
specialty business model
Celanese
Commodity Intermediate Specialty Consumer
Oil & Gas
Chemicals Products Products Products
Motorola
►
Exxon Dow* Dow* Rohm & Haas*
► ► ► ►
► Toyota
► BP ► Lyondell ► Eastman* ► ICI*
► Sherwin-
► Shell ► Methanex ► PPG*
Williams
► FMC*
► Siemens
Celanese
2001 2007
8 * Celanese internal peer group
9. Geographically balanced global
positions and diversified end market
exposure
Paints &
Coatings Textiles
Food & Beverage
15% 6%
5%
Automotive
Consumer &
9%
28% 44% 28%
Industrial
Adhesives
4%
Consumer &
Medical
Construction Applications
7% 11%
Chemical
Performance
Additives
Industrial Applications
5% 4%
Filter Media
Paper &
16%
Packaging
Other
8% 10%
Notes:
End market breakdown based on 2007 estimated gross sales
9
Geographic breakdown based on 2007 estimated gross sales to external customers by destination
10. Integrated businesses aligned to
accelerate growth
Differentiated Intermediates Specialty Products
Building Block
Acetate
Consumer
Specialties
Anhydride
(CS)
Nutrinova
and esters
Acetic
Acid
Emulsions
Industrial
Raw VAM PVOH Specialties
Materials
(IS)
AT Plastics
Formaldehyde
Ticona
Advanced
Engineering
Acetyl Intermediates Engineered
Polymers
(AI) Materials
(AEM)
Affiliates
10
11. Strong performance in an uncertain
business environment
2007 Updated Guidance 2008 Initial Outlook
Adjusted Operating Adjusted Operating
EPS EBITDA ($MM) EPS EBITDA ($MM)
Current $3.26 - $3.31 $1,285 - $1,295 $3.35 - $3.65 $1,280 - $1,350
Previous $3.10 - $3.20 $1,240 - $1,270
► Execution of growth objectives ► Deliver on growth objectives
► Strong acetyl environment ► Continue to offset inflation through
Operational Excellence
► Delivering on Operational Excellence
objectives ► Volatile raw material environment
expected to continue
► Mitigating raw material volatility
► Continued strength in Europe and Asia
Increasing guidance and expecting strong 2008 earnings growth
11
12. Since 2000, Celanese has executed
against a simple strategic foundation
FOCUS
Participate in
businesses where we have
a sustainable competitive
advantage
Celanese INVESTMENT
REDEPLOYMENT
Divest non-core assets and Leverage and build on
Strategic
revitalize underperforming advantaged positions that
Pillars
businesses optimize our portfolio
GROWTH
Aggressively
align with our customers
and their markets to
capture growth
12
13. Today’s portfolio: more resilient and
less volatile
Operating EBITDA Margin
►
25% Current portfolio provides overall
higher level of earnings
20% 20%
► Historic view with today’s
19% 19%
20%
portfolio reflects significantly less
17% 19%
16% volatility
15% 15% 17%
15% Current portfolio range: 15% - 20%
16%
Historic portfolio range: 10% - 20%
► One-third of portfolio is new to
10% 11% 11% 11%
the company since 2000
10%
► Growth objectives will continue
5%
to bolster portfolio
2000 2001 2002 2003 2004 2005 2006 2007E
As Reported Pro Forma for Current Portfolio
13
14. Today’s portfolio: higher growth, more
specialty
Operating EBITDA1
► Strategic growth plans
Advanced Engineered Materials
Consumer and Industrial Specialties
continue to accelerate
Acetyl Intermediates
1,400
earnings of specialty
businesses
1,200
● Essentially all growth has come
~45%
1,000
$ in millions
from specialty businesses
38%
● Two-thirds of 2010 Growth
800
Objectives expected from
600
specialty businesses
► Resulting in:
400 ~55%
62%
● Higher growth rates
200
● Increased overall earnings
- power of the portfolio
2005 2007E
● Reduced volatility
12005 and 2007E Operating EBITDA excludes Other Activities of ($122) and ~($100) respectively for the periods presented
14
15. 2010 Growth Objectives are aligned
with the strategic pillars
Celanese 2010 Objective:
$350-$400
$300-$350 million EBITDA Growth
Balance
Operational
Asia Revitalization Innovation Organic
Sheet
Excellence
► ~$200 million
► Nanjing complex ►APL acquisition ► AI: sustained ► $140 million in
► AEM: 9%
debt pay
growth and estimated cost
volume growth
● Launched ● Acquired
down
high industry improvements
acetic acid
EBITDA ► Growth in
and emulsions utilization
► Debt
► Significant
units ‘green’
● Realizing
► AEM: refinancing
improvement in
applications
● 4 units under synergies
to near-
increased energy efficiency
construction
►Announced plans investment
lbs. per auto
● Announced
grade
for Industrial
compounding
unit Specialties
► $400 million
► AEM: direct to share
China repurchase
► CS: continued
growth of
Acetate venture
Increasing 2010 Growth Objectives
relationships
by $50 million to $350 - $400 million
15 Exceeding initial expectations
16. Committed to delivering value creation
Primary Growth Focus
Balance Operational EBITDA
Group Asia Revitalization Innovation Organic
Sheet Excellence Impact
Consumer and
EPS Operating EBITDA
X X X X
Industrial >$100MM
Specialties
Advanced
X X X X
Engineered >$100MM
Materials
Acetyl
X X X >$100MM
Intermediates
Celanese Incremental
X X EPS
Corporate
$350 – $400 million increased EBITDA profile
plus EPS potential by 2010
16
17. On track and clear path forward to
accelerate 2010 Growth Objectives
Operating EBITDA Growth Objectives
Advanced Engineered Materials
400
► AEM: volume growth > 2X GDP
Consumer and Industrial Specialties
Acetyl Intermediates
through further penetration
► CIS: Acetate continues
$ in millions
execution on revitalization
200
strategy; Emulsions/PVOH
revitalization commences
► AI: Nanjing acetic acid plant
startup leads integrated complex
0
2007 2008 2009 2010
17
18. Asia: enhancing Celanese’s
geographic lead
2007E Regional Split 2010E Regional Split
Revenue Revenue Asia
Asia
~35%
28%
Earnings Earnings
Asia1 Asia
~33% ~50%
Approximately 50% of earnings from the fastest growing region
Note: Revenue breakdown based on 2007 estimated net sales
18 1 Earnings breakdown based on 2007 estimated Operating Profit
19. Asia strategy: high-return growth
Celanese Nanjing Integrated Complex Investment Dynamics
GUR® Celstran® Total investment: $300 -
►
Warehouse Flare
Unit Unit $350 million – over 80%
complete
Acetic Anhydride Vinyl Acetate
Total revenue: $600 - $800
►
Unit Monomer Unit
million when sold out by
2010
Incremental EBITDA: $120 -
►
Acetic Acid
Utilities /
$150 million by 2010
Unit
Tank Farm
Emulsions
Complex
Administration &
ROIC = 25 – 30%
Compounding
Maintenance
19
20. Operational Excellence: offset inflation
and drive sustainability objectives
Fixed Cost/Reduction Above Inflation
$1 billion year overall productivity 2010 Sustainability Goals
600
Injury rate
Cumulative inflation
$ million per year
Greenhouse gases
Air emissions
2007 progress
Waste
Energy
0
2001 2002 2003 2004 2005 2006 2007E
0 20 40 60 80
Fixed Cost Reduction % Reduction versus 2005
20
21. Results have led to significant value
creation
Enterprise Value2
Cumulative Adjusted Free Cash Flow
2,500 10,000
2,000 8,000
1,500
$ in millions
6,000
$ in millions
1,000 4,000
500 2,000
0 0
2000 2001 2002 2003 2004 2005 2006 2007E
YE 2000 IPO Current
1
Cumulative
Adjusted free cash flow Equity
Net debt
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
21 2 Enterprise value represents market capitalization (Current - as of December 7, 2007) plus net debt and minority interest
22. Current balance sheet strategy for
cash deployment
Significant Value Creation
High
► Cost reduction &
revitalization projects
► Asset expansion – high
Return on Capital Deployed/
growth area
► Core/bolt-on acquisitions
Value Creation
Returning Cost of Capital
Return on of Realizing Value/
►Difficulty Capital – low
Asset expansion Deployed/
Skills orValue Creation
Competencies Required
growth area
► Share repurchase
Returning Cash to
Shareholders
► Dividend
► Debt repayment
► Hold cash
Low
Difficulty of Realizing Value/
Low High
Skills or Competencies Required
22
23. Bias for growth and high-return projects
Significant Value Creation
High
► Cost reduction &
revitalization projects
~75% of ► Asset expansion – high
Return on Capital Deployed/
Capital growth area
► Core/bolt-on acquisitions
Deployed
Value Creation
Returning Cost of Capital
Since 2005
► Asset expansion – low
growth area
14%
► Share repurchase
Returning Cash to
Shareholders
► Dividend
► Debt repayment
► Hold cash
Low
Difficulty of Realizing Value/
Low High
Skills or Competencies Required
23
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
►
25
27. Advanced Engineered Materials:
delivering performance driven solutions
Celanese
2007 Revenue1: $6.5 B
2007 Op. EBITDA Margin (est.): ~20%
Advanced Engineered Consumer and Industrial
Acetyl Intermediates
Materials Specialties
2007 Revenue1: $1.0 B
2007 Op. EBITDA Margin (est.): ~25%
Korea Engineering
Fortron Industries
Polyplastics
Ticona Plastics Ownership 50%
Ownership 45%
Ownership 50%
2007E Total Affiliate Revenue2 $1.3 B
> 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
►
1Represents 2007 estimated third party net sales
27 2Equity affiliates total revenue not included in AEM results
28. Well positioned for continued growth
► Premier Franchise
Differentiated business model
Sustained performance
► Growth through Innovation and Technology
Capitalize on Megatrends
Asia expansion
28
29. Providing valuable solutions to
extreme requirements
AEM “Sweet Spot”
Excellent Intensive Engineering
►
Highly Specification-
►
Products Driven Functional Parts
Leading-Edge
►
Technical, Market and
Highly engineered polymers –
Application Expertise
high performance portfolio
Extreme Extraordinary
Requirements Engineering
Collaborative engineering
Precise applications
right people – right place
in complex
– right time
environments
29
30. Excellent Products: value of technology
and performance is realized in price
$100 / kg Price for Performance
$10 / kg
$3 / kg
$100/kg
High-Performance Polymers (HPP)
5%
$10/kg
Engineering Thermoplastics (ETP)
$3/kg
others = 2%
Performance
Price Range
Ranges
PU = 6%
95% Standard Polymers
$1/ kg PET = 7%
ABS, SAN, ASA: 3%
PS, EPS = 8%
PVC = 17%
PE = 31% PP = 21%
$1/kg
Range of Products
30
32. Extreme Temperature
Range of Temperature Requirements
Hostaform®
GUR®
Riteflex® Fortron®, Vectra®,Celstran®
Celanex
Critical Part Specification
Bulk polymers
PET, PEN
Bulk polymers
PP, PE, PVC
Continuous Use Temperature
(40)°F extreme cold 600°F extreme heat
Ticona polymers
32
33. Extreme Requirements: precise
applications in complex environments
No Industry Demands More Than Medical Systems
Competitive Products
Ticona High
Requirements PP PET
Temp. PA
POM
+ = + +
FDA compliance
+ + - =
Chemical resistance
+ = - =
Steam sterilization
+ - - +
Dimensional stability
+ + - -
Wear resistance
+ - + +
FDA drug master file
++ =
Value-in-use = -
Ticona POM: Only polymer that meets
ALL requirements
33
34. Extraordinary Engineering:
right people – right place – right time
Engineered Polymers Industry Supply Chain
Material and Performance Specifications
AEM
Raw Converter Manufacturer
End-use
● Monomer &
Material ● Injection ● Components
polymer
Customer
Supplier ● Finished
producer molding
● Compounder ● Extrusion goods
AEM Solutions – processing expertise and material performance
34
35. Intellectual capital enables
performance-driven solutions
OEM
Specification
Prototype
Opportunity
Generation
Part Design
Testing
Modeling & Simulation Part Validation
► Overall development cycle: 18 - 24 months
► ~70% of Ticona business is specification-based
35
36. Case study: orthopedic replacement
joints
Excellent
Products
GUR® UHMW-PE
Exceptional Defensibility
Medical grade
►
Abrasion resistance
►
Human cartilage
►
replacement
Extreme Extraordinary
Requirements Engineering
Product chemists –
►
Bio-compatibility
►
bridging requirements and
Wear resistance
► polymer properties
Impact strength
► Product stewards –
►
ensuring regulatory compliance
FDA compliance
►
Mechanical designers –
►
translating the polymer into
the molded part
GUR®: Only engineered polymer approved for hip and knee replacements
36
37. Broad range of end-use applications to
targeted niches…
Revenue by End-Use 2007E ~ $1 billion
Medical 5% Transportation 47%
Other 6%
● Fuel systems
● Drug delivery systems
● Safety systems
● Medical implants
● Mechanical components
Alternate Fabrication
12%
Electrical &
Electronics 8%
Consumer & Appliance
Industrial 10%
12%
● Emissions filtration
● Textiles ● Communication systems
● LED lighting
● Connectors
● Water purification
● Fluid handling ● Durable household goods
● Gearing ● Bakeware
37
38. …requiring a consistent global brand
experience
Americas Europe China
► Application development ► Application development
► Application development
► Compound development ► Compound development
► Compound development
► Polymer development ► Testing
► Polymer development
► Testing ► Processing optimization
► Testing
► Injection molding
► Processing optimization
38
39. 1,000s of products in 1,000s of
applications across dozens of industries
39
40. Sustained performance: proven track
record of revenue and earnings growth
Operating EBITDA and Revenue
► AEM has consistently
300 1,200
delivered continued sales
and earnings growth
Operating EBITDA ($ in millions)
225 900
► High energy and raw
Revenue ($ in millions)
material costs compressed
2007E Operating EBITDA
150 600
Estimated impact of ~250 – 350
bps
75 300
► Volume growth in both
automotive and non-
automotive applications
0 0
globally
2002 2003 2004 2005 2006 2007E
Operating EBITDA Revenue
40
41. Strong correlation between value
delivered and specification strength
Value of Specification
Specification Strength
► Richness of portfolio
► Long-term customer
Solvay
relationships
AEM
Specification Strength
► Technical and
DSM
DuPont
application expertise
BASF
LANXESS
► Global technical and
DOW SABIC/PC
manufacturing presence
Lyondell/Basell
Nova
► High value-in-use
applications
SABIC/Core
► Limited substitute
materials
Value Delivered
41
42. Premier franchise
Relative Financial Performance versus
AEM Peer Group
15%
Celanese AEM ► Fastest earnings growth
Operating Profit as a % of Sales
► Highest relative
DSM DuPont Solvay
SABIC/SIP profitability
GE Plastics BASF
► EBITDA multiple
Solvay
continues to trail peers
DuPont
despite continued
Celanese AEM
earnings strength
DSM
BASF
2003 YTD 2007
Peer group: corresponding segments of BASF, DSM, DuPont, GE Plastics, Solvay Plastics
YTD 2007 figures include one quarter of GE plastics, now SABIC/SIP
AEM results exclude certain other charges, COC divestiture and equity earnings from affiliates
42
43. Well positioned for continued growth
► Premier Franchise
Differentiated business model
Sustained performance
► Growth through Innovation and Technology
Capitalize on Megatrends
●
Asia expansion
●
43
44. Committed to delivering value creation
Primary Growth Focus
Balance Operational EBITDA
Group Asia Revitalization Innovation Organic
Sheet Excellence Impact
Consumer and
EPS Operating EBITDA
X X X X >$100MM
Industrial
Specialties
Advanced
X X X X >$100MM
Engineered
Materials
Acetyl
X X X >$100MM
Intermediates
Celanese Incremental
X X EPS
Corporate
$350 – $400 million increased EBITDA profile
plus EPS potential by 2010
44
45. An important contributor to the
Celanese growth strategy
Operating EBITDA Growth Objectives
(versus 2006 Baseline)
► Volume growth > 2X GDP
100
► Innovation in automotive and
non-automotive applications
drives continued earnings
$ in millions
improvement
50
► Expansion in China provides
platform for further penetration
in end-use applications
0
2007 2008 2009 2010
45
48. Technologies to reduce emissions and
improve fuel efficiency
Fuel cells
Alternative renewable fuel
sources help reduce CO2
Hybrid-engine systems
Alternative fuels
Engine
combustion
efficiency
Development Advanced air management
Weight
time to full enhances engine
reduction
commercialization combustion efficiency
48
49. Leading engineered polymers in
emissions innovation and fuel efficiency
Customer
Requirements
► Chemical resistance
► Impact resistance
► Dimensional
stability
► High heat
Drivers:
Alternative fuels – Bio-fuels
►
65 million lbs. 80 million lbs.
Air quality
►
acetal ETPs
SORE emissions
►
Legislation – environmental & safety
►
in 2006 in 2010
Turbocharged Engine
Fuel Module E85 Compatible Polymers
Fortron® PPS
Hostaform® XF
Air Cooler
49 Source: Celanese estimates
50. Emissions reduction beyond fuel
systems
Customer Requirements
Metallic-look Hostaform®/POM
► Functional aesthetics
► Eliminates painting/plating ► Wear resistance
► Strength
► Reduces VOCs
► Color matching to interior
painted metallic parts
► Saves $1 to $4 per vehicle
Significant opportunity: currently only
~200,000 out of 120 million doors worldwide
use metallic-look POM
50
54. GUR® UHMW-PE: well positioned to
provide solutions for global water
filtration Customer
Requirements
► NSF specification
► Proprietary binding
agent to boost
filtration efficiency
Drivers:
Population growth
►
Global requirements
►
5.5 billion with 6.1 billion with
Economical alternative to
►
bottled water
clean water clean water
World Health Organization
►
access – 2006 access – 2015
standards
20% GUR® Growth
Shower Filter Faucet Filter Drinking Water Filter
2000 2003 2006 2008 2010
54
55. 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. Nanjing provides platform for Ticona
growth in Asia
Fully Integrated Complex
Celanese Nanjing Integrated Complex
GUR® and Celstran® unit
GUR® Celstran® ►
Warehouse Flare construction underway and
Unit Unit
production expected in 2008
►
Acetic Anhydride Vinyl Acetate Recently announced addition
of new compounding plant at
Unit Monomer Unit
Nanjing in 2009
► Application development
center in Shanghai
Acetic Acid
Utilities /
► Incremental contribution by
Unit
Tank Farm
Emulsions 2010:
Complex ~$100 million in annual
●
sales
Administration &
Compounding
Maintenance
56
57. Technologies to reduce particulate
emissions: coal-fired power plants
Customer
Requirements
Chemical resistance
►
High heat
►
Drivers:
Increased global power
►
consumption
1,300 GW 2,100 GW
More coal-fired power plants
►
coal-fired coal-fired
Air quality
►
Environmental legislation
►
power in 2006 power in 2020
Fortron® PPS Coal-fired Power Plant Air Coal-fired Power Plant
Air Filter Bags Filter System
57
58. Coal-fired power plants provide
significant growth opportunity
► Characteristics of filter bags
Flue Gas Cleaning Bag House for
Coal-fired Power Plants
Typically 6 inches in diameter and
26 feet in length
Up to 20,000 bags used per house
Life 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 power
2020: 760 GW coal-fired power
58
59. Significant opportunity for increased
penetration in high growth region
Advanced Engineered Materials
Global Auto Production
Type of Resins
China
Japan
6
2001
U.S.
Germany
13
2007E
India
S. Korea
2010E 18
China production
France
nearly doubles Highest
Brazil
within 5 years 40
Current
Spain Model
Canada 2006 Production China
2.5 Trend
Current
Production Growth 2006-2012
Mexico
0 3,000 6,000 9,000 12,000 15,000
Pounds per Vehicle
Vehicle Production (Thousand units)
Source: Global Insight Source: Celanese Estimates
59
60. Translating auto application expertise
to Asia
Select Interior Fuel Delivery Systems
Components
Fuel reservoirs
►
Instrument clusters
► Fuel limit valves
►
Metallic-look controls
► Roll-over valves
►
Safety restraints
► Fuel flanges
►
Overhead consoles
► Fuel pumps
►
Door Systems
Structural Parts Window lifts
►
Door locks
►
Front-end modules
►
Door modules
►
Instrument panels
►
Power motor housings
►
Sunroof systems
►
60
61. Application development requirement:
a global network to serve global demand
Application
Development
Center
Frankfurt New Application
Development
Center
Application
Shanghai
Development
Centers
Florence, KY
Auburn Hills, MI
61
62. Industry recognition of innovation
Winner Of SPE Innovation Award
BMW X5
Celstran® LFRT fender carrier
►
► Strong, lightweight
Winner Of SPE 2007
Grand Innovation Award
Mercedes-Benz C-Class
Vectra® LCP active safety sensor
►
► Detects moisture, activates wipers,
dries brakes
62
63. AEM is well positioned for continued
growth
► Premier Franchise
Differentiated business model
Sustained performance
► Growth through Innovation and Technology
Capitalize on Megatrends
Asia expansion
63
64. Consumer and Industrial Specialties
Doug Madden
President, Acetate, AT Plastics and Emulsions & PVOH
65. Consumer and Industrial Specialties:
value-added specialty businesses
Celanese
2007 Revenue1: $6.5 B
2007 Op. EBITDA Margin (est.): ~20%
Advanced Engineered Consumer and Industrial
Acetyl Intermediates
Materials Specialties
2007 Revenue1: $2.5 B
2007 Op. EBITDA Margin (est.): ~15%
Consumer Specialties Industrial Specialties
2007 Revenue1: 2007 Revenue1:
$1.1 B $1.4 B
2007 Op. EBITDA Margin (est.): ~25% 2007 Op. EBITDA Margin (est.): ~8%
Leading global positions in both businesses
►
Significant consumers of Acetyl Intermediates products
►
Downstream integration mitigates raw material volatility
►
GDP+ growth
►
1Represents 2007 estimated third party net sales
65
66. Committed to delivering value creation
Primary Growth Focus
Balance Operational EBITDA
Group Asia Revitalization Innovation Organic
Sheet Excellence Impact
Consumer and
EPS Operating EBITDA
X X X X >$100MM
Industrial
Specialties
Advanced
X X X X >$100MM
Engineered
Materials
Acetyl
X X X >$100MM
Intermediates
Celanese Incremental
X X EPS
Corporate
$350 – $400 million increased EBITDA profile
plus EPS potential by 2010
66
67. CIS: path to improved earnings
Operating EBITDA Growth Objectives
(versus 2006 Baseline) ► Ahead of schedule to deliver
> $100 million in additional
150
>$100 million
EBITDA
by 2009
► Consumer Specialties
100 Successful completion of Acetate
$ in millions
revitalization
Integration of Acetate Products
Limited (APL) acquisition
50
► Industrial Specialties
Revitalization of emulsions and PVOH
businesses
0
Innovation in key customer
2007 2008 2009 2010 applications
Globalization in emerging economies
Consumer Specialties Industrial Specialties
67
68. Consumer Specialties: stable earnings
and cash generation
Consumer and Industrial
Specialties
2007 Revenue1: $2.5 B
2007 Op. EBITDA Margin (est.): ~15%
Consumer Specialties Industrial Specialties
2007 Revenue1: $1.1 B 2007 Revenue1: $1.4 B
2007 Op. EBITDA Margin (est.): ~25% 2007 Op. EBITDA Margin (est.): ~8%
Acetate Products
Nutrinova Emulsions PVOH AT Plastics
and Ventures
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
►
1Represents 2007 estimated third party net sales
68
69. Acetate Products: execution of
strategy continues to deliver earnings growth
Timeframe 2004 2005 2006 2007 2008 2009 2010
► Restructuring/Repositioning
China venture tow expansions Complete
Filament exit/site optimization Complete
China venture flake expansion
► APL Acquisition
Complete
Integrate the business
Capture/realize synergies
► Beyond 2008
Maximize cash generation
Selective and sustainable growth
Next moves: further Asia expansions
69
70. Successful revitalization and strategy
progress for Acetate Products
► Significant improvement to manufacturing cost structure
Consolidated manufacturing footprint to lower-cost regions
Closed the Edmonton flake plant in 1Q 2007
► Completed planned China venture expansions – more than doubled
Expanded 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
Optimized Operations and Market Focus
North America North America Europe Europe China Ventures
2005 2008E 2005 2008E 2005 to 2008E
Flake 4 sites 2 sites 0 sites 1 site Expanded
Tow 3 sites 2 sites 1 site 2 sites Expanded
Filament 2 sites Fully exited
70
71. APL Acquisition: a strategic fit
Acetate Products Limited Benefits to Celanese
► Acquired ► Customers
cellulose acetate flake, tow – Broadens mix and reach
and film business of APL ► Integration – Enables European flake
Purchase price ~$110 million production
Additional $30 million for synergies ► Captive consumption - Increases
downstream integration
►2 U.K. manufacturing facilities:
Spondon ► Procurement
● and logistics – Network
enhancements
Little Heath – Closed 3Q 2007
●
► Synergies – Full capture by 2008
Acquisition ~$20
Synergies million
Manufacturing
►
SG&A
►
Purchased ~$20 ~$20
EBITDA million million
Logistics
►
71
72. Acetate Products: optimized global
manufacturing footprint
Spondon, United Kingdom Lanaken, Belgium
Nantong, China
Narrows, Virginia
Kunming, China
Zhuhai, China
Ocotlan, Mexico
Flake Production
Tow Production
Only integrated producer in each region of the world
72
73. Strategically positioned for further
expansion in growth regions
Celanese Share of Global Acetate Tow Market
Global Acetate Tow Market by Region
(2007E)
(2007E)
60%
60%
CAGR 2005 – 2010E
2 – 3%
40%
40%
1 - 2%
20%
20%
(1 – 2)%
1 - 2%
0% 0%
Asia Europe Americas ROW
Total 1
Asia 1 Europe Americas ROW
Global Market Size: ~720kt
1Includesshare attributable to China ventures
Source: Celanese estimates
73
74. Consumer Specialties: successful
revitalization and continued execution
of current strategy
CS Operating EBITDA 2004 – 2010E Acetate Products
►
revitalization
Growth Objective
completed in 2007
350
Full synergy capture of
►
300
APL acquisition by
Asian Growth1
2008
250
European Initiative
Nutrinova to offset
►
$ in millions
200
price declines with
volume increases
North America/Europe Revitalization
150
Modest growth beyond
►
2008:
100 Acetate Base Operating EBITDA
Growth in Asia
50
continues at 2-3%
Nutrinova Operating EBITDA
per year
0
Sustainable Operating
2004 2005 2006 2007E 2008E 2009E 2010E
EBITDA
1Dividends from cost investments
74
75. Industrial Specialties: integrated
technology solutions
Consumer and Industrial
Specialties
2007 Revenue1: $2.5 B
2007 Op. EBITDA Margin (est.): ~15%
Consumer Specialties Industrial Specialties
2007 Revenue1: $1.1 B 2007 Revenue1: $1.4 B
2007 Op. EBITDA Margin (est.):~25% 2007 Op. EBITDA Margin (est.): ~8%
Acetate Products
Nutrinova Emulsions PVOH AT Plastics
and Ventures
Significant consumer of Acetyl Intermediates products
►
Earnings improvement through revitalization
►
Growth opportunities through continued innovation
►
and globalization
1Represents 2007 estimated third party net sales
75