ce gs conference - june 2010

8/8/2019 CE GS Conference - June 2010

1/50

Celanese Corporation

June 2010


2/50


3/50

3

Celanese technology-focused portfolio

building on a track record of executionand value creation

Celanese($ in millions)

2009 Revenue: $5,082

2009 Operating EBITDA: $847

Revenue: $1,078

Operating EBITDA: $348

Revenue: $808


Revenue: $974


Revenue: $2,220


Consumer SpecialtiesAdvanced Engineered

MaterialsIndustrial Specialties Acetyl Intermediates

Note: Does not include revenue and operating EBITDA of Other Activities of $2 million and ($101) million

Significant valueopportunity for

investorsStrong earnings growth

Leading portfolio withstrategic affiliates


4/50

4

Consumer Specialties

(Acetate Flake and Tow, High IntensityFood Sweetener)

Industrial Specialties(Vinyl Emulsions andEVA Performance Polymers)

Advanced Engineered Materials

(Engineered Thermoplastics andPolymers)

Acetyl Intermediates

(Acetic Acid andAcetyl Derivatives)

Cash generation with earnings growth Industry-leading partnership Growth opportunities in Asia

Upstream integration Emerging economy opportunities Growth through innovation

Accelerated revenue growth Strong earnings conversion Technology-rich product pipeline

Portfolio well positioned for earnings growth

Technology-focused and specialty materials portfolio

Global leader

Advantaged technology Superior cost position


5/50

5

Additional growth opportunities Next Generation Acetyl technology

advancements

Success with innovation andnew technology

VAE Nanjing expansion

Manufacturing optimization China venture expansion

Ibn Sina venture enhancement FACT LFT acquisition DuPont LCP/PCT acquisition

Updated view highlights shift to increasinglyadvantaged portfolio

Mid-Term Operating EBITDA by Segment

AdvancedEngineeredMaterials

Consumer

Specialties

IndustrialSpecialties

AcetylIntermediates

$500 - $550

$350 - $400

$175 - $200

$500 - $600

Previous View*

$550 - $600

$400+

$200+

$550 - $600

Previous view provided at May 2009 Investor Day event. Current view as of May 2010 Investor Day event* Assumes resegmentation of Ibn Sina venture

Current View*Strategic Development

Confident in earnings power of portfolio

($ in millions)


6/50

6

Continued generation& deployment of cash

Improved earningspower

Accelerated toplinegrowth

Earnings power of advantaged portfolio

Operating EBITDA

$847 million

$1,600- $1,800million

+>$250million

+~$150

million

Multiple strategic levers accelerate earnings growth

CE Specific:70% of 2011 to 2013

Earnings Improvement

2009 2010 2011 Geographic

Growth

Innovation Productivity Economic

Growth

2013 EBITDA


7/50

7

2001* 2009* 2013 EBITDA

Todays Celanese:A Technology and Specialty Materials Company

UndifferentiatedEra

HybridTransition

Technology &Specialty

Materials Era

Advantaged Intermediates

Specialty Materials

Commodity

Celanese Portfolio Transformation

Operating EBITDA Shift Towards Specialty Materials

Reducedvolatility

Increasedearnings

Higher growth

rates

($inmillions)

500

1,000

1,500

2,000

100

* Excludes Other Activities segment

Specialty Materials: 2001 2013 CAGR: >12%


8/50

8

Strategic Rationale

Strategic affiliates add to technology andspecialty materials capability

1 Ibn Sina resegmented to AEM2 Excludes Infraserv affiliates and does not include intersegment eliminations

Strategic affiliates add significant value to the Celanese portfolio

TotalCompany2


AcetylIntermediates

AdvancedEngineered

Materials

1

ConsumerSpecialties

$953

--

--

$698

$255

2009 StrategicAffiliate

ProportionalRevenue

$6,035

$974

$2,220

$1,506

$1,333

TotalConsolidated

Revenue

2009 CERevenue

$5,082

$974

$2,220

$808

$1,078

Access to emerging geographies

Mitigate raw material cost volatility

Access to low-cost raw materials

Alignment with growing demand

Access to emerging geographies


9/50

9

Strategic affiliates enhance emergingeconomies opportunity

Note: End-use and geographic estimates based on Celanese 2009 gross sales with strategic affiliates proportional revenue and management estimates

Other

8%

Construction

3%

Paints &Coatings

13%

Automotive

11%

Consumer &Medical

Applications

12%

Filter Media

22%

Consumer

& IndustrialAdhesives

9%

Textiles

5%

Food &Beverage

4%

ChemicalAdditives

3% Paper &Packaging

3%

IndustrialPerformanceApplications

7%

Consolidated Revenue by Region (USD)

Americas25%

EU36%

AOC21%

China18%

9


10/50

10

Diverse exposure in Asia

Note: End-use and geographic estimates based on Celanese 2009 gross sales with strategic affiliates proportional revenue

Top AOC Sales by Country

18%Other

5%Singapore

5%Thailand

7%South Korea

8%Indonesia

14%India

43%Japan

Revenue by Region (USD)Consolidated Revenue by Region (USD)

Americas25%

EU36%

AOC21%

China18%

Approximate Sales Distributionin China

32%8%

8%

10%

6%

14%12%

10%

Filter Media

Others

Adhesives

Paints &Coatings

Construction

Consumer &

Medical

Textiles

Auto


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11

GeographicGrowth

Innovation Productivity Economic Growth Portfolio

Continued strengthin emergingeconomies

Nanjing expansionsupports furthergrowth

Commercializationof new Ticonapolymertechnology

Emulsions lowVOC products

Manufacturingoptimization

Energy reduction

SG&A processimprovements

Acquired FACTsLFT business

Acquired DuPontsLCP/PCTbusinesses

Economicrecovery off low1H 2009 base

Accelerated paceof recovery in 1H2010

Confident in short-term earnings growth

Operating EBITDA and Adjusted EPS

$847 million$1.71 per share

~$1,100 million>$3.00 per share

YOY Improvement:

+ $250 million operating EBITDA

+ >$1.25 Adjusted EPS

2009 Geographic

Growth

Innovation Productivity Economic Growth 2010


12/50

12

0

100

Ticona Polyamide Poly-

propylene

Poly-

carbonate

Average Specification byMaterial Type

Relative%Specified

~70% of Ticonabusiness is

uniquely specified

0%

50%

100%

150%

200%

2001 2005 2010E

7%

Revenue

CAGR

Revenue Growth since 2001

R

evenueindexedto2001

AEM: Business model drives growth andearnings

Source: Celanese internal estimates

Highly specified application drive sustainable valuefor performance polymers

Stable Margins - Value ofHighly Specified Applications

VariableMargin%

2001 20090

80

2005

Average VariableMargins 55 - 65%


13/50

13

$0

$200

($inmillions)

Strategic Drivers Benefits to TiconaSummary

Acquired Zenite liquid

crystal polymer businessfrom DuPont

Includes Thermx highperformance polyester resin

Purchase price: ~$60 million

Post synergy multiple: < 5x

DuPont LCP and PCT Businesses

Expands LCP product

portfolio

Broadens customer base

Accesses new producttechnology

Enhances geographic

footprint

Strengthens E/E participation

and enhances technologypositions

Increases presence in Asiawith access to localmanufacturing relationships

Enhances customer valuethrough technology advances

AEM: Recent transactions enhance theportfolio offerings and enable future growth

3 yr avgsales

Ticona LCP Mid-Term Sales

Mid-Term Sales Growth

$70 million Recovery+

Growth+

Acquisition


14/50

14

AEM: Recent transactions enhance theportfolio offerings and enable future growth

Strategic Drivers Benefits to TiconaSummary

Will construct 50 kt POMfacility in the Middle East

Increases interest inventure from 25% to 32.5%at POM launch and extendsuntil 2032


15/50

15

0

30

60

90

Historic

High

2009 2010E 2011E 2012E 2013E

AutoBuild(m

illions)

Global Automotive Production

AEM: Global automotive production providessolid foundation for growth

2009 2013 CAGR: 10%

Key Production Growth by Country

0 5 10 15 20

Brazil

South Korea

India

Germany

US

Japan

China

Auto Builds (units in millions)

2009 Growth 2009 - 2013

Global auto builds estimated to return topre-recession levels of ~70 million unitsby 2011

Accelerated growth in automotive drivenprimarily by:

Accelerated growth in emerging regions

Demand recovery in developed regions

Global Automotive Production

Four-Year Forecasted Auto Build CAGR

China 10%

Japan 9%

US 16%

Germany 4%

India 16%

South Korea 4%

Brazil 4%


2010 2013 CAGR: 9%


16/50

16

Estimated Value per Vehicle

80%

115%

150%

2005 2009

Ticona Polymers Weight per Vehicle

AEM: Application development with keycustomers drives increasing value per

vehicle

80%

115%

150%

2005 2009

Ticona Polymers Value per Vehicle

Relativepoundspervehicle

Relativevariablem

arginpervehicle

Strong history of translating applications into value

2005 2009 CAGR: 5% 2005 2009 CAGR: >9%


17/50

17

CS: Manufacturing footprint optimization

Optimizing Global Footprintand Cost Position

Proposed closure of Spondon, UK facilityin mid-to-late 2011

Acetate capacity in-line with globaldemand shifts

Build on unique flexibility of Celanesemanufacturing network

Opportunity to significantly improve costposition

~Two-year simple cash payback return

-150

-75

0

75

($inmillions)

$80 - $120 million

$40 - $60 million

Project Economics

EstimatedOne Time

Investment*

EstimatedAnnual Cash

Benefit

Delivering significant near term productivity: Positive 2011 impact

* Excludes ~$72 million asset write-off (non-cash) recorded in 1Q 2010


18/50

18

0

10

20

30

40

50

60

70

80

2004 2005 2006 2007 2008 2009 2010E

CS: China position continues tostrengthen portfolio

Acetate Dividends

Dec 2009 AnnouncedMemorandum of understanding for next phaseof China expansion

April 2010 ApprovedMemorandum of understanding NDRC approval

Expansions lead to growth in earnings anddividends

Zhuhai Cellulose Fibers Co., Ltd.

Kunming Cellulose Fibers Co., Ltd Nantong Cellulose Fibers Co., Ltd

DividendReinvestment

Strong Partnership for Future Growth

Expansion project approved with current China partner

($

inmillions)


19/50

19

Further growth in Acetate earnings power

CS: EBITDA Projections

2009 2010E 2011E 2012E 2013E 2014E

New EarningsTarget

Consumer Specialties Operating EBITDA and Dividends 2009 2014E

Ongoing

Ongoing

New

New

New growth

Next China expansion

Manufacturingrealignment

Maintain foundationearnings

Maximize cash generation

Selective and sustainable

growth $300

$350

$400

($inm

illions)


20/50

20

IS: Nanjing expansion supports vinylsystem growth

Vinyl system leadership

Focus on product technology

differentiation Partner with leading Western and

Chinese companies

2008 Nanjing I

Achieved a leading position in China for

key segments Sales growth 18 months ahead of plan

Developed business in other emergingregions

2011 Nanjing II

Announced doubling of Nanjing VAEcapacity in October 2009

Startup expected mid-2011

Expanding vinyl technology into emerging markets


Asia Growth

0%

100%

200%

300%

400%

500%

600%

2007 2008 2009 2010 2011 2012 2013

%o

f20

07Asiarevenue

China Asia Outside China (AOC)

Nanjing II VAEstartup

Nanjing I VAEstartup

Celanese Emulsion Asia Revenue


21/50

21

IS: Gaining traction from technologyleadership and applied innovation

2009 accomplishments

Medical: Developed new grade for

market expansion

Carpet/Textiles: New vinyl technology

Paper: New vinyl technology to improvefunctionality and end-use opportunities

Construction: New grades focused onimproving energy efficiency andsustainability

Coatings: Six global EcoVAE interiorand exterior products

0

50

100

150

200

2009 2010 2011 2012

Revenueimpact

($

inmillions)

Expected New Product Revenue Industrial Specialties Innovation Pipeline

Expanding segment penetration and improving sales mix

2008 2010Launched products

Coatings

Construction

Paper

Carpet/Textiles

Medical



22/50

22

2010E Acetic Acid Cost Curve


AI: Capacity additions 2010 to 2013 will have

minimal impact to current cost curve

$perton

By-Product

Avg Other LeadingTechnology

Ethylene

Ethanol

Average Celanese

Effective Industry Utilization Rates

Announced NewCapacity 2010 - 2013

Majority of newcapacity is higher cost

Assumes capacityadditions will becompleted asannounced

LowerCost

ChinaMeOH

Avg Other

LeadingTechnology

HighestCostChinaMeOH

Pricing for CE toearn >15% EBITDA

Highest CostChina MeOH

2010EDemand

Lower CostChina MeOH

75 - 80%

Avg Non-ChinaMeOH Carbonylation


23/50

23

Henan Shunda

AI: Pricing has remained at expected levels

despite recent capacity additions

China Acetic Acid Industry Pricing*

* Source: ICIS NE Asia Average Acetic Acid Spot Pricing

Celanese profitability remains attractive


Inventory

Destocking

200

300

400

500

Ja

n-09

Feb-09

Ma

r-09

Ap

r-09

Ma

y-09

Ju

n-09

Jul-09

Au

g-09

Sep-09

Oc

t-09

No

v-09

De

c-09

Ja

n-10

Feb-10

Ma

r-10

Industry Outages

Startups

GlobalIndustryUtilization

70% 75-80%

Industry Outages Startup

Sipchem

Startup

Kingboard

200

300

400

500

Ja

n-09

Feb-09

Ma

r-09

Ap

r-09

Ma

y-09

Ju

n-09

Jul-09

Au

g-09

Sep-09

Oc

t-09

No

v-09

De

c-09

Ja

n-10

Feb-10

Ma

r-10

$perton

GlobalIndustryUtilization

70% 75-80%

Expected CostCurve Range

Yankuang

Henan Shunda

Startups

Hualu Hengsheng


24/50

24

All announcedprojects, if realized,expected to beequal to or above

todays economics

Stable acetic acidmargins expectedover coming years


AI: Differentiated cost curve remains intact

and attractive for Celanese

$perton

By-Product

Avg Other LeadingTechnology

Ethylene

Ethanol

Avg Non-ChinaMeOH Carbonylation

Effective Industry Utilization Rates


2013E Acetic Acid Cost Curve

Average Celanese2013E

Demand

75 - 80%

Highest CostChina MeOH

Lower CostChina MeOH


25/50

25

AI: Process innovation to drive over$50 million of EBITDA opportunities

VariableCost($/t)

Acetic Acid Technology Comparisons

Source: Celanese internal analysis, available public information; based on recent raw material costs

0%

50%

100%

Additionaladvantageachievable

Minimum15%

advantageexists today

$10 per ton of variable cost reduction= $30 million of EBITDA improvement

Continued technology enhancement

VAM Technology Comparisons

$15 per ton of variable cost reduction= $20 million of EBITDA improvement

0%

50%

100%

Disadvantaged

Technology

Celanese Celanese Near

Term

VariableCost($/t)

DisadvantagedTechnology

LowestCost Local

China

Celanese CelaneseNear Term


26/50

26

Acetyl Intermediates Revenue Detail*Opportunities in

Downstream Derivatives

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

2009 Total

Acetyl

Revenue

Non Acetyl

Products

Acetic

Acid

Derivatives

Acetic

Acid

Outside

China

Acetic

Acid China

($inbillions)

Earnings growth not dependent

on acetic acid margin expansion

Approximately $2 billion (~80%)of revenue from products otherthan acetic acid

Global growth opportunities down-stream of acetic acid

AI: Extended portfolio and geographicpresence provides platform to capture growth

* Based on 2009 Celanese Actuals

Global growth through the portfolio

Opportunityfor volumeand margin

recovery


27/50

27

Strategic value of our affiliates

Polyplastics JVNantong, China

Ibn SinaAl Jubail, Saudi Arabia

Acetate VentureNantong, China

Acetate VentureZhuhai, China

PolyplasticsFuji City, Japan

Acetate Affiliates

AEM Affiliates

Access geographies

Emerging economies

Strategic raw material

positioning History of successful cash

and earnings growth

Affiliate Strategy

Strategic affiliates provide enhanced value creation

Korean EngineeredPlasticsUlsan, Korea

Polyplastics JVKaohsiung, Taiwan

Polyplastics JVKuantan, Malaysia

Acetate VentureKunming, China

Fortron

Wilmington, NC


28/50

28

Economic value of our strategic affiliates

0

50

100

150

200

250

2005 2006 2007 2008 2009 2010E

Earnings from Equity AffiliatesIncluded in Operating EBITDA

Earnings and Proportional EBITDA of Affiliates

Proportional EBITDA above EarningsNOT Included in Operating EBITDA

>$100 million annual EBITDAin affiliates not reflected in

CE Operating EBITDA

($inmillions)

Significant earnings AND cash contributions

Cash from Strategic Affiliates*

0

50

100

150

200

250

2005 2006 2007 2008 2009 2010E

($inmillions)

* Excludes dividends from Infraserv affiliates

Acetate

Ibn Sina

Equity Affiliates


29/50

29

$29Less: Reported equity in net earnings of

affiliates

$351Total 2009 EBITDA as reported by affiliates*

~$500Hidden Equity Value of Affiliates

$220Less: Proportional net debt of affiliates

$725Enterprise value of unreported affiliateEBITDA (Using CE EV/EBITDA multiple)

$105Celanese proportional affiliate EBITDA not

included in CE 2009 results

$1342009 Celanese proportional EBITDA

Additional value in affiliates

Source: Thomson Reuters First Call* Excludes Ibn Sina & Acetate ventures

Additional value of strategic affiliates exceeds $3 per share

5yearaveragetotalaffiliatecontribution/

Preta

xincome

0%

5%

10%

15%

20%

25%

30%

35%

C

E

AL

B

AP

D

FM

C

CY

T

P

X

PPG

D

D

L

Z

Significance of Strategic Equity Affiliates

Cost investmentsdividends

Hidden Value of Strategic Equity Affiliates($ in millions)


30/50

30

Celanese capital structure

Term Loan - $2.7 billion

Other Debt - $800 millionDe

bt

Common Stock

Equity

Priority Uses of Liquidity

High-return investments

Mergers & Acquisitions

Return to shareholders

Capital structure

Share buyback to at least offset dilution

$122 million authorized

Increased dividends

Announced 25% increase effectiveAugust 2010

Return to Shareholders

Debt Structure Considerations

Flexibility to execute business strategy

Covenants Optimal mix of secured/unsecured

Cost Debt levels/mix

Staggered maturity schedule

Liquidity

Cash - $1.1 billion

Credit-Linked Facility - $140 million

Revolver - $600 million

Note: Values as of 3/31/2010


31/50

31

Celanese Incremental ROIC WACCSpread Above Industry Average Spread

2.2%

1.5%

4.8%

5.6%

2.6%

0.4%

2005 2006 2007 2008 2009 2010E*

2005-2009 ROIC WACC Spread

5.2%

3.7%

2.1%

1.6%

2.6%

Celanese SpecialtyChemicals

CommodityChemicals

IndustrialGases

Average

Note: Specialty Chemicals companies include DuPont, Ecolab, FMC, Nalco and Rockwood. Commodity Chemicals companies include Dow, Eastman, Georgia Gulf, Methanex andWestlake. Industrial Gases companies include Airgas, Air Products and Praxair

* 2010 WACC & invested capital assumed to be similar to that of 2009Source: FactSet data systems (April 2010), First Call

ROIC

WACCSpread%

CEROIC

WACCSpread%

inexcessofindustryaverage

Consistently delivering high returns forshareholders through cash deployment

Technology advantage + Fiscal discipline + Portfolio = High ROIC


32/50

Celanese Corporation

June 2010


33/50


34/50

34

Impact2010 to 2013 EBITDA

Operating EBITDA

Sustained pricing and margins++Productivity based on manufacturing alignment in growth regions

-Modest exposure to volatile energy costs

+++Well positioned for growth in Asia

Increased dividends from China ventures

Consumer Specialties summary

$348 million

$400+ million

2009 2010 Geographic Growth Productivity 2013 EBITDA


35/50

35


Operating EBITDA

Industrial Specialties summary

+++

Innovation of new products and applications:

Expanding low VOC vinyl systems Increasing application space Strong innovation pipeline

-Counter-cyclical to key Acetyl feedstocks

++Geographic growth through adoption of low VOC technologies

$109 million

$200+ million

PVOH

2009 2010 Geographic

Growth


Growth

2013 EBITDA


36/50

36


Operating EBITDA

Acetyl Intermediates summary

* Ibn Sina represents cost dividends and does not include the effects of converting to equity method accounting

++Volume growth and margin expansion in downstream derivatives

Raw materials and energy risks mitigated by supply positions+++Process innovation and productivity 2x inflation

Acetic Acid cost curve sustained

$357 million

$550 - $600 million

Ibn Sina*

2009 2010 Geographic

Growth


Growth

2013 EBITDA

Si ifi t ti id t h l i l


37/50

37

Raw Material and ConversionCost Advantages

Capital Advantages

Source: Various press releases, 2007 China Acetic Acid Conference and Celanese internal estimates

Significant acetic acid technologicaladvantage provides unique position in

the industry

0

100

200

300

400

500

600

CE AOPlus 2 CE AOPlus

at 600 kt

Chinese

Technology /Chinese

Production

Disadvantaged

Technology /Middle Eastern

Production

RelativeCapitalIntensity

90

100

110

120

130

140

150

160

170

CE Avg Other

Leading

Avg Non-

ChinaMeOH

Avg Lower

Cost ChinaMeOH

Avg China

High CostMeOH

Relative

%ofCostPerTon*

*CE = 100%

Leading technology provides platform for success

Project delays continue to be common


38/50

38

Chang Chun (Taiwan)

Yankuang

Shaanxi Yanchang

Yunnan Yunwei

Tianjin Bohai

Henan Shunda

Shaanxi Yulin

BP Nanjing

Wujing

Daqing

Yankuang Cathay

2011 20122008 2009 20102006 2007

Wujing (Huayi Anhui)

Kingboard

BP Chongqing

Yongmei Longyu

Yankuang

Sopo

Henan Yima

Hualu Hengsheng

2013200520042003Company

1 Celanese internal analysis and opinion

Project delays continue to be commongiven operational complexity, price and

operating cost

ProjectInitiation

AnnouncedStartup

ActualStartup

LatestEstimates

R G R ili ti f O ti EBITDA


39/50

39

Reg G: Reconciliation of Operating EBITDA(Table 1)

SegmentDataandReconciliationofOperatingProfit(L

oss)toOperatingEBITDA-

aNon-U.S.GAAPMeasure

(in

$m

illions

)

2009

2008

2009

2008

NetSales


239

195

808

1,061

ConsumerSpecialties

267

286

1,084

1,155


229

277

974

1,406

AcetylIntermediates

743

656

2,603

3,875

OtherActivities1

1

1

2

2

Intersegmenteliminations

(91)

(129)

(389)

(676)

Total

1,388

1,286

5,082

6,823

OperatingProfit(Loss)


33

(48)

35

32

ConsumerSpecialties

47

52

231

190


16

(8)

89

47

AcetylIntermediates

73

(116)

95

309

OtherActivities1

(60)

(32)

(160)

(138)

Total

109

(152)

290

440

EquityEarnings,Cost-Divi

dendIncomeandOtherIncome(Expense)


1

5

27

37

ConsumerSpecialties

1

(2)

57

47


-

-

-

-

AcetylIntermediates

19

30

48

125

OtherActivities1

6

(2)

18

15

Total

27

31

150

224

OtherChargesandOtherAdjustments2


(3)

22

-

25

ConsumerSpecialties

4

2

10

3


(8)

2

(26)

13

AcetylIntermediates

7

75

103

108

OtherActivities1

17

4

30

22

Total

17

105

117

171

DepreciationandAmortizationExpense


19

18

72

76

ConsumerSpecialties

13

13

50

53


11

14

46

57

AcetylIntermediates

29

32

111

134

OtherActivities1

2

2

11

9

Total

74

79

290

329

OperatingEBITDA


50

(3)

134

170

ConsumerSpecialties

65

65

348

293


19

8

109

117

AcetylIntermediates

128

21

357

676

OtherActivities1

(35)

(28)

(101)

(92)

Total

227

63

847

1,164

2

SeeTable2fordetails.

YearEnded

December31,

ThreeMonthsEnded

December31,

1

OtherActivitiesprimarilyincludesco

rporateselling,generalandadministrativeexpensesandtheresultsfromca

ptiveinsurancecompanies.




(in

$m

illions

)

2009

2008

2009

2008

NetSales


239

195

808

1,061

ConsumerSpecialties

267

286

1,084

1,155


229

277

974

1,406

AcetylIntermediates

743

656

2,603

3,875

OtherActivities1

1

1

2

2


(91)

(129)

(389)

(676)

Total

1,388

1,286

5,082

6,823



33

(48)

35

32

ConsumerSpecialties

47

52

231

190


16

(8)

89

47

AcetylIntermediates

73

(116)

95

309

OtherActivities1

(60)

(32)

(160)

(138)

Total

109

(152)

290

440




1

5

27

37

ConsumerSpecialties

1

(2)

57

47


-

-

-

-

AcetylIntermediates

19




(in

$m

illions

)

2009

2008

2009

2008

NetSales


239

195

808

1,061

ConsumerSpecialties

267

286

1,084

1,155


229

277

974

1,406

AcetylIntermediates

743

656

2,603

3,875

OtherActivities1

1

1

2

2


(91)

(129)

(389)

(676)

Total

1,388

1,286

5,082

6,823



33

(48)

35

32

ConsumerSpecialties

47

52

231

190


16

(8)

89

47

AcetylIntermediates

73

(116)

95

309

OtherActivities1

(60)

(32)

(160)

(138)

Total

109

(152)

290

440




1

5

27

37

ConsumerSpecialties

1

(2)

57

47


-

-

-

-

AcetylIntermediates

19

30

48

125

OtherActivities1

6

(2)

18

15

Total

27

31

150

224



(3)

22

-

25

ConsumerSpecialties

4

2

10

3


(8)

2

(26)

13

AcetylIntermediates

7

75

103

108

OtherActivities1

17

4

30

22

Total

17

105

117

171



19

18

72

76

ConsumerSpecialties

13

13

50

53


11

14

46

57

AcetylIntermediates

29

32

111

134

OtherActivities1

2

2

11

9

Total

74

79

290

329

OperatingEBITDA


50

(3)

30

48

125

OtherActivities1

6

(2)

18

15

Total

27

31

150

224



(3)

22

-

25

ConsumerSpecialties

4

2

10

3


(8)

2

(26)

13

AcetylIntermediates

7

75

103

108

OtherActivities1

17

4

30

22

Total

17

105

117

171



19

18

72

76

ConsumerSpecialties

13

13

50

53


11

14

46

57

AcetylIntermediates

29

32

111

134

OtherActivities1

2

2

11

9

Total

74

79

290

329

OperatingEBITDA


50

(3)

134

170

ConsumerSpecialties

65

65

348

293


19

8

109

117

AcetylIntermediates

128

21

357

676

OtherActivities1

(35)

(28)

(101)

(92)

Total

227

63

847

1,164

2

SeeTable2fordetails.

YearEnded

December31,

ThreeMonthsEnded

December31,

1

OtherActivitiesprimarilyincludesco

rporateselling,generalandadministrativeexpensesandtheresultsfromca

ptiveinsurancecompanies.

R G R ili ti f O ti EBITDA


40/50

40

Reg G: Reconciliation of Operating EBITDA(Table 1a)

S

egmentDataandReconci

liationofOperatingProfit(Loss)toOperatingEBITDA

-


(in$m

illions

)

2007

2006

2007

2006

N

etSales


253

224

1,030

915

ConsumerSpecialties

279

224

1,111

876


331

309

1,346

1,281

AcetylIntermediates

1,083

831

3,615

3,351

OtherActivities

1

-

6

2

22


(186)

(164)

(660)

(667)

T

otal

1,760

1,430

6,444

5,778

O

peratingProfit(Loss)


30

29

133

145

ConsumerSpecialties

69

41

199

165


26

9

28

44

AcetylIntermediates

276

107

616

456

OtherActivities

1

(77)

(46)

(228)

(190)

T

otal

324

140

748

620

E

quityEarningsandOther

Income/(Expense)2


7

13

55

55

ConsumerSpecialties

3

2

40

24


-

-

-

(1)

AcetylIntermediates

27

23

78

63

OtherActivities

1

8

12

-

22

T

otal

45

50

173

163

O

therChargesandOtherA

djustments

3


(10)

(1)

(5)

(5)

ConsumerSpecialties

(27)

-

(16)

-


(1)

2

32

16

AcetylIntermediates

(97)

16

(38)

52

OtherActivities

1

42

(2)

140

29

T

otal

(93)

15

113

92

D

epreciationandAmortizationExpense


18

17

69

65

ConsumerSpecialties

12

10

51

39


16

14

59

59

AcetylIntermediates

25

23

106

101

OtherActivities1

2

-

6

5

T

otal

73

64

291

269

O

peratingEBITDA


45

58

252

260

ConsumerSpecialties

57

53

274

228


41

25

119

118

AcetylIntermediates

231

169

762

672

OtherActivities1

(25)

(36)

(82)

(134)

T

otal

349

269

1,325

1,144

1

Other

Ac

tiv

itiesprimari

lyinc

ludescorpora

tese

lling,

genera

lan

da

dm

inis

tra

tiveexpensesan

dtheresu

lts

from

cap

tive

insurancecompan

ies.

The

2007Opera

ting

Pro

fit(Loss

)an

dOther

Chargesan

dOther

Adjustm

en

tsamoun

tsinc

lude

de

duc

tibleassoc

iatedw

ithinsurancerecovery.

2

Inc

ludesequ

ityearn

ings

froma

ffilia

tes,

dividen

ds

fromcos

tinves

tments

an

do

ther

income

/(expense

).

3

Exc

ludesa

djus

tmen

tstom

inori

tyin

teres

t,ne

tinteres

t,taxes,

deprec

iation,

amort

iza

tionan

ddiscon

tinue

dop

era

tions

(See

Ta

ble2a

).

ThreeMonthsEnded

December31,

T

welveMonthsEnded

December31,

S



-


(in$m

illions

)

2007

2006

2007

2006

N

etSales


253

224

1,030

915

ConsumerSpecialties

279

224

1,111

876


331

309

1,346

1,281

AcetylIntermediates

1,083

831

3,615

3,351

OtherActivities

1

-

6

2

22


(186)

(164)

(660)

(667)

T

otal

1,760

1,430

6,444

5,778

O



30

29

133

145

ConsumerSpecialties

69

41

199

165


26

9

28

44

AcetylIntermediates

276

107

616

456

OtherActivities

1

(77)

(46)

(228)

(190)

T

otal

324

140

748

620

E


Income/(Expense)2


7

13

55

55

ConsumerSpecialties

3

2

40

24


-

-

-

(1)

S



-


(in$m

illions

)

2007

2006

2007

2006

N

etSales


253

224

1,030

915

ConsumerSpecialties

279

224

1,111

876


331

309

1,346

1,281

AcetylIntermediates

1,083

831

3,615

3,351

OtherActivities

1

-

6

2

22


(186)

(164)

(660)

(667)

T

otal

1,760

1,430

6,444

5,778

O



30

29

133

145

ConsumerSpecialties

69

41

199

165


26

9

28

44

AcetylIntermediates

276

107

616

456

OtherActivities

1

(77)

(46)

(228)

(190)

T

otal

324

140

748

620

E


Income/(Expense)2


7

13

55

55

ConsumerSpecialties

3

2

40

24


-

-

-

(1)

AcetylIntermediates

27

23

78

63

OtherActivities

1

8

12

-

22

T

otal

45

50

173

163

O


djustments

3


(10)

(1)

(5)

(5)

ConsumerSpecialties

(27)

-

(16)

-


(1)

2

32

16

AcetylIntermediates

(97)

16

(38)

52

OtherActivities

1

42

(2)

140

29

T

otal

(93)

15

113

92

D



18

17

69

65

ConsumerSpecialties

12

10

51

39


16

14

59

59

AcetylIntermediates

25

23

106

101

OtherActivities1

2

-

6

5

T

otal

73

64

291

269

O

peratingEBITDA


45

AcetylIntermediates

27

23

78

63

OtherActivities

1

8

12

-

22

T

otal

45

50

173

163

O


djustments

3


(10)

(1)

(5)

(5)

ConsumerSpecialties

(27)

-

(16)

-


(1)

2

32

16

AcetylIntermediates

(97)

16

(38)

52

OtherActivities

1

42

(2)

140

29

T

otal

(93)

15

113

92

D



18

17

69

65

ConsumerSpecialties

12

10

51

39


16

14

59

59

AcetylIntermediates

25

23

106

101

OtherActivities1

2

-

6

5

T

otal

73

64

291

269

O

peratingEBITDA


45

58

252

260

ConsumerSpecialties

57

53

274

228


41

25

119

118

AcetylIntermediates

231

169

762

672

OtherActivities1

(25)

(36)

(82)

(134)

T

otal

349

269

1,325

1,144

1

Other

Ac

tiv

itiesprimari

lyinc

ludescorpora

tese

lling,

genera

lan

da

dm

inis

tra

tiveexpensesan

dtheresu

lts

from

cap

tive

insurancecompan

ies.

The

2007Opera

ting

Pro

fit(Loss

)an

dOther

Chargesan

dOther

Adjustm

en

tsamoun

tsinc

lude

de

duc

tibleassoc

iatedw

ithinsurancerecovery.

2

Inc

ludesequ

ityearn

ings

froma

ffilia

tes,

dividen

ds

fromcos

tinves

tments

an

do

ther

income

/(expense

).

3

Exc

ludesa

djus

tmen

tstom

inori

tyin

teres

t,ne

tinteres

t,taxes,

deprec

iation,

amort

iza

tionan

ddiscon

tinue

dop

era

tions

(See

Ta

ble2a

).

ThreeMonthsEnded

December31,

T

welveMonthsEnded

December31,


41/50

41

Reg G: Reconciliation of Operating EBITDA(Table 1b)

Segm

entDataandReconciliationofOperatingProfit(Loss)toOperatingEBITDA-aNon-U.S.

GAAPMeasure-U

naudited

TwelveMonthsEnded

March31,

June30,

September30,

Decemb

er31,

December31,

(in$m

illions)

2005

20

05

2005

200

5

2005

NetS

ales

Adva

ncedEngineeredMaterials

239

223

212

213

887

Cons

umerSpecialties

212

219

208

200

839


206

263

305

286

1,060

AcetylIntermediates

690

707

731

783

2,911

Othe

rActivities1

12

8

6

6

32


(95)

(99)

(113)

(153)

(460)

Total

1,264

1,321

1,349

1,335

5,269


Adva


39

5

18

(2)

60

Cons

umerSpecialties

24

27

21

56

128


-

5

5

(14)

(4)

AcetylIntermediates

143

121

76

146

486

Othe

rActivities1

(83)

(33)

(38)

(30)

(184)

Total

123

125

82

156

486

Equit

yEarningsandOtherIncome/(Expense)2

Adva


12

16

15

11

54

Cons

umerSpecialties

-

2

(2)

3

3


-

-

-

-

-

AcetylIntermediates

12

(10)

32

35

69

Othe

rActivities1

(8)

18

(2)

5

13

Total

16

26

43

54

139


Adva


1

20

4

6

31

Cons

umerSpecialties

1

-

10

(24)

(13)


-

2

8

1

11

AcetylIntermediates

19

11

15

(30)

15

Othe

rActivities1

45

(10)

2

3

40

Total

66

23

39

(44)

84


Adva


15

14

13

18

60

Cons

umerSpecialties

12

12

7

11

42


12

11

7

17

47

AcetylIntermediates

17

24

35

34

110

Othe

rActivities1

2

2

4

1

9

Total

58

63

66

81

268

OperatingEBITDA*

Adva


67

55

50

33

205

Cons

umerSpecialties

37

41

36

46

160


12

18

20

4

54

AcetylIntermediates

191

146

158

185

680

Othe

rActivities1

(44)

(23)

(34)

(21)

(122)

Total

263

237

230

247

977

*Quarte

rlyearningsforthediscontinuedEdmontonMethanol

18

10

4

3

35

operationshavebeenincludedinOtherChargesandO

therAdjustments.

OxoA

lcoholDivestiture

22

28

22

9

81

TotalOperatingEBITDA-asreported

285

265

252

256

1,058

1

OtherActivitiesprimarilyincludescorporateselling,

gen

eralandadministrativeexpensesandtheresultsfromcaptiveinsurancecompanies.

2

Includesequityearningsfromaffiliates,dividendsfromcostinvestmentsandotherincome/(expense).

3

Exclu

desadjustmentstominorityinterest,netinterest,taxes,

depreciation,

amortizationanddiscontinued

operations.

T

hreeMonthsEnded

Reg G Other Charges and Other


42/50

42

Reg G: Other Charges and OtherAdjustments (Table 2)

Reconciliation of Other Charges and Other Adjustments

(in $ millions) 2009 2008 2009 2008

Employee termination benefits 11 2 105 21Plant/office closures (3) - 17 7

Ticona Kelsterbach plant relocation 6 4 16 12

Clear Lake insurance recoveries - (15) (6) (38)

Plumbing actions (7) - (10) -

Sorbates settlement - - - (8)

Asset impairments 6 94 14 115

Other - (1) - (1)

Total 13 84 136 108

Other Adjustments:1

Income

Statement

(in $ millions) 2009 2008 2009 2008 Classification

Ethylene pipeline exit costs - - - (2) Other (income) expense, net

Business optimization 4 6 7 33 SG&A

Ticona Kelsterbach plant relocation (3) 2 - (4) Cost of sales

Plant closures 9 9 25 23 Cost of sales

Gain on sale of PVOH business - - (34) - (Gain) loss on disposition

Other2

(6) 4 (17) 13 Various

Total 4 21 (19) 63

Total other charges and other adjustments 17 105 117 1711 These items are included in net earnings but not included in other charges.

2 The year ended December 31, 2009 includes a one-time adjustment to Equity in net earnings (loss) of affiliates of $19 million.

December 31,

Three Months Ended

Three Months Ended

December 31, December 31,

Year Ended

December 31,

Year Ended


43/50

R G R ili ti f Adj t d EPS


44/50

44

Income tax (provision) benefit on adjusted

Reg G: Reconciliation of Adjusted EPS(Table 3)

Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure

(in $ millions, except per share data)

per

share

per

share

per

share

per

share

Earnings (loss) from continuing operations 1 -0.01 (140) -0.99 484 3.08 371 2.28

Deduct Income tax (provision) benefit (85) 43 243 (63)

Earnings (loss) from continuing operations

before tax 86 (183) 241 434

Other charges and other adjustments 1 17 105 117 171

Adjusted earnings (loss) from continuing operations before tax

103 (78) 358 605earnings 2 (24) 20 (90) (157)

Less: Noncontrolling interests - - - (1)

Adjusted earnings (loss) from continuing

operations 79 0.50 (58) (0.40) 268 1.71 449 2.75

Diluted shares (in millions)3

Weighted average shares outstanding 144.1 143.5 143.7 148.4

Assumed conversion of preferred stock 12.1 - 12.1 12.0

Dilutive restricted stock units 0.3 - 0.2 0.5

Dilutive stock options 1.9 - 1.1 2.6

Total diluted shares 158.4 143.5 157.1 163.5

1 See Table 2 for details.

2 The adjusted effective tax rate for the six months ended December 31, 2009 is 23%. The adjusted effective tax rate for the six months ended June 30, 2009 is 29%.

3 Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.

2008200920082009

Year Ended

December 31,

Three Months Ended

December 31,


45/50


46/50

Reg G: Proportional EBITDA in affiliates above earnings


47/50

47

Reg G: Proportional EBITDA in affiliates above earningsfrom equity investments (Table 4b)

Total Celanese ($ in millions) 2005* 2006 2007 2008 2009

Affiliate Operating Profit 228 231 275 231 161

Affiliate Depreciation & Amortization 154 132 143 182 190Affiliate EBITDA 382 363 418 413 351

Celanese proportional share in Affiliate EBITDA 159 149 174 164 134

GAAP Equity in net earnings of affiliates 51 76 82 54 29

Affiliate EBITDA in excess of Equity in net

earnings of affiliates 108 73 92 110 105

Cash from Equity Affiliates 65 109 57 64 37

* Unaudited estimates

Reg G: Reconciliation of Free Cash Flows


48/50

48

Reg G: Reconciliation of Free Cash Flows(Table 5)

Total Company ($ in millions) 2005 2006 2007 2008 2009

GAAP Net cash provided by Operating Activities 701 751 566 586 596

Less: GAAP Capital expenditures (203) (244) (288) (274) (176)Free Cash Flows 498 507 278 312 420Add: Capital Expenditures on growth & productivityprojects, severance costs

133 162 219 161 163

Free Cash Flows Before Strategic Investments 631 669 497 473 583

Net proceeds from sale of businesses and assets 48 23 715 9 171

Less: Adjustments 0 0 265 0 0Adjusted Cash from Divestitures 48 23 450 9 171

Reg G: Reconciliation of 2001 2009 Operating


49/50

49

Reg G: Reconciliation of 2001 2009 OperatingEBITDA (Table 6)

Total Celanese ($ in millions) 2001 2002 2003 2004 2005* 2006* 2007 2008 2009

GAAP Operating Profit (470) 162 133 130 573 747 748 440 290

Depreciation & Amortization 372 300 328 256 285 283 291 329 290

Other Charges & Other Adjustments 472 (1) 6 340 50 40 82 171 117

Equity Earnings and Other Income (Expenses) 58 58 92 75 150 174 173 224 150

Operating EBITDA 432 519 559 801 1,058 1,244 1,294 1,164 847

Net Sales 4,537 4,535 5,133 5,069 6,070 6,656 6,444 6,823 5,082

Operating EBITDA Margin 10% 11% 11% 16% 17% 19% 20% 17% 17%

Portfolio Adjustments 5% 4% 6% 4% 3% 1% 1% 1% 0%Pro Forma EBITDA Margin for Current

Portfolio 15% 15% 17% 20% 21% 20% 21% 18% 17%

* Amount not restated for 2007 divestitures reported as discontinued operations

Reg G: Reconciliation of Consumer


50/50

50

gSpecialties EBITDA (Table 7)

Consumer Specialties Combined

(in $ millions) 2009 2008 2007 2006 2005 2004

Operating Profit(Loss) 231 190 199 165 128 42Equity Earnings, Cost - Dividend Income and Other Income

(Expense) 57 47 40 24 3 6Other Charges and Adjustments 10 3 (16) - (13) 49

Depreciation and Amortization Expense 50 53 51 39 42 48

Operating EBITDA 348 293 274 228 160 146

Twelve months ended December 31,

ce gs conference - june 2010

Documents