Celanese Corporation · NYSE:CE
Celanese — Q1 2007 Earnings Presentation
20 slides from Celanese's earnings presentation, May 1, 2007
Slide 1: Celanese 1Q 2007 Earnings Conference Call / Webcast
Dave Weidman, Chairman and CEO John J. Gallagher III, Executive Vice President and CFO Celanese 1Q 2007 Earnings Conference Call / Webcast Tuesday, May 1, 2007 10:00 a.m. ET
Slide 2: Forward Looking Statements, Reconciliation and Use of Non-GAAP Measures
Forward Looking Statements, Reconciliation and Use of Non-GAAP Measures to U.S. GAAP Free Cash Flow is defined as Cash Flow from Operations less Capital Expenditures. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding chan
Slide 3: Dave Weidman, Chairman and Chief Executive Officer
Dave Weidman Chairman and Chief Executive Officer
Slide 4: Celanese Corporation Q1 2007 Highlights
Celanese Corporation Q1 2007 Highlightsin millions (except EPS) 1st Qtr 2007 1st Qtr 2006 Net Sales $1,631 $1,498 Operating Profit $239 $169 Adjusted EPS $0.91 $0.59 Operating EBITDA $349 $269 Free Cash Flow $37 ($42) Note: All figures exclude results of discontinued operations of Oxo Alcohol busine
Slide 5: Celanese continues to execute its six-point strategy
Celanese continues to execute its six-point strategy $300 - $350 million increased EBITDA profile plus EPS potential by 2010 Group Asia Revitalization Innovation Organic Balance Sheet Operational Excellence EBITDA Impact Consumer and Industrial Specialties X X X X > $100MM Advanced Engineered Materi
Slide 6: John J. Gallagher III, Executive Vice President and Chief Financial Officer
John J. Gallagher III Executive Vice President and Chief Financial Officer
Slide 7: Celanese Corporation Financial Highlights
Celanese Corporation Financial Highlights in millions (except EPS) 1st Qtr 2007 1st Qtr 2006 Net Sales $1,631 $1,498 Operating Profit $239 $169 Net Earnings $201 $117 Special Items Other Charges/Adjustments Refinancing Adjustment $19 ($2) $10 - -- Adjusted EPS $0.91 $0.59 Effective Tax Rate 28% 28%
Slide 8: Ticona Technical Polymers First Quarter 2007
First Quarter 2007: Net sales increase driven by strong volume growth (9%) and currency effect (5%) offset by slight pricing decline due to customer and application mix Strong demand continues in Europe and Asia Weakness in US auto and housing markets offset by non-automotive volume growth Operating
Slide 9: Acetate Products and Performance Products
Operating margin improvement with revitalization program Ceased flake production at the Edmonton facility in the first quarter APL acquisition positively impacts revenue; no material impact on earnings Performance Products Lower revenues driven by exit of low-margin trade business in 4Q 2006 Continu
Slide 10: Strong performance continues for Equity and Cost Investments
Q1 2006 Q1 2007 Q1 2006 Q1 2007 Q1 2007: Cash flow higher than earnings impact due to increased cash dividend from Infraserv affiliates and our IBN Sina cost investment FY 2007 Income Guidance: Income modestly above 2006 full year performance Full-year 2007 Cash Flow guidance: Cash flow approximates
Slide 11: Strong sales growth in Ticona affiliates offset by higher operating costs
Strong sales growth in Ticona affiliates offset by higher operating costs
Slide 12: Summary of impact from refinancing and share buyback transaction
Summary of impact from refinancing and share buyback transaction Assumes no additional debt pay down with cash balances or cash generation Initial 2007 guidance assumed use of Oxo business divestiture proceeds to pay down term loan at LIBOR + 175 bps. Initial guidance of $170-190MM net cash interest
Slide 13: 2007 Business Outlook
Chemical Products Strong pricing continues into the second quarter Nanjing Acetic Acid facility expected to begins commercial production mid-2007 ~($0.15)/share 2Q-4Q year over year methanol comparison with Edmonton exit Ticona Continue >2x GDP volume growth across transportation and non-transportat
Slide 14: Updated 2007 guidance summary
Updated 2007 guidance summary Initial Guidance Midpoint Recapitalization Impact Improvement in underlying Business Incremental Methanol Benefit Increased Compensation Expense Updated Guidance Midpoint Ghost 2.85 2.95 3.05 3 Guidance 2.85 3 Positive 0.1 0.1 0.05 Negative 0.1 Performance Improvement i
Slide 15: Appendix
“9 Celanese Appendix
Slide 16: Updated 2007 Guidance
Updated 2007 Guidance Adjusted EPS $2.85 to $3.15 Operating EBITDA $1,180 to $1,250 million Capital Expenditure / Depreciation and Amortization Approximately $280 million Net interest expense $205 - $215 million Estimated Tax Rate for Adjusted EPS of 28%
Slide 17: Reg G: Reconciliation of Diluted Adjusted EPS
Reg G: Reconciliation of Diluted Adjusted EPS
Slide 18: Reg G: Reconciliation of Net Debt
Reg G: Reconciliation of Net Debt
Slide 19: Reg G: Reconciliation of Other Charges and Other Adjustments
Reg G: Reconciliation of Other Charges and Other Adjustments Reconciliation of Other Charges and Other Adjustments
Slide 20: Reg G: Reconciliation of Operating EBITDA
Reg G: Reconciliation of Operating EBITDA