celanese_roadshow_august_2007final_8_28_07
TRANSCRIPT
1
Credit Suisse 16th Annual Chemical ConferenceSeptember 26, 2007
2
Forward Looking Statements, Reconciliation and Use of Non-GAAP Measures to U.S. GAAP
Forward-Looking Statements 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 release, 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 presentation. 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.
Reconciliation of Non-U.S. GAAP Measures to U.S. GAAP This presentation reflects three performance measures, operating EBITDA, adjusted earnings per share, and net debt 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; and for net debt is total debt.
Use of Non-U.S. GAAP Financial Information
§ 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. 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 flows from operating activities 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 Items 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.
3
An Attractive Hybrid Business Model
Balance of intermediate & specialty products* Celanese internal peer group
Commodity Chemicals
Intermediate ProductsOil & Gas Consumer
Products
• Motorola• Toyota• Sherwin-Williams• Siemens
• Dow*• Lyondell• Methanex
• Rohm & Haas*• ICI*
Celanese
Specialty Products
• Dow* • Eastman*• PPG*• FMC*
• Exxon• BP• Shell
1 Includes Other Operating Segment, with Revenue of $257 and $117 and Operating EBITDA of ($111) and ($29), respectively
$1.75$3.00Adjusted EPS
$674$1,244Operating EBITDA1 (in $ millions)
$3,111$6,656Revenue1 (in $ millions)
1H20072006
4
40% 35% 25%
Balanced Global and End Market Positions
Notes:Includes oxo alcohol and polyol derivative divestiture and APL acquisitionEnd use breakdown based on 2006 est. external sales revenue
Other11%
Construction
8%
Paints & Coatings
14%
Automotive
9%
Consumer / MedicalApplications
11%
Filter Media
14%
Consumer and Industrial
Adhesives
4%
Textiles
6%Food and Beverage
5%
Chemical Additives
6%
Paper & Packaging
9%
Performance Industrial Applications
3%
5
Execution…Growth…Value
► Phase I : Execution – 2000 to 2006Execute transformation strategy
► Phase II: Growth – 2007 to 2010 Celanese earnings growth strategy
► Ongoing: Value – Deliver solid financial results and shareholder value
Continue to create value in excess of the peer group
6
Focus and strengthen portfolio…2000 to 2006
Portfolio Strategy► Invest in specialty businesses ► Build strength in differentiated intermediates► Extend the acetyl chain globally► Reduce exposure to non-differentiated, more commodity businesses► Divest non-core business lines
Fuel Cells
($1.8 B)$1.8 B
COCPBI
Emulsions GreeceAcrylatesAPL
Estech JVNylonAcetex
DH Actives TrespaphanVinamul
Emulsion PowdersPolyol derivativesClariant Emulsions
VectranOxo alcoholsAir Products PVOH
DivestituresAcquisitions
1Data from the year in which the transaction occurred
Total Revenue Impact1
7
Enhanced market position; reduced commodity exposure
% Revenue from Products Holding #1 or #2 Position
% Revenue from Specialty Businesses
200612000
55%
36%
40%
31%
33%
5%3
Total Revenue$6.2 B
Total Revenue$4.9 B
1IExcludes results from Oxo alcohol business; includes results from APL acquisition2~95% #1 or #2 with the planned 2007 closure of all Celanese methanol production3Primarily methanol and formaldehyde revenue
Non-differentiated Intermediates
Specialty Products
Differentiated Intermediates
20061,22000
Chemical Products
Ticona
Acetate
Nutrinova
~70%
Chemical Products
Ticona
Acetate
Nutrinova
~95%
8
Significantly improved earnings profile since 2000
1Includes estimates for oxo alcohol and polyol derivative divestiture and APL acquisition – Actual 2006 results were $1,244 millionAll numbers are based on CE estimates
Operating EBITDA Growth1
2000 – 2006 ($MM)
290-300
90-9580-85
130-135 40-45
528
~1,180
Baseline 2000 Volume Margin Increase in Earnings from
Affiliates
Portfolio Optimization
Cost Reduction net
of Inflation
2006 Proforma
9
Execution…Growth…Value
► Phase I : Execution – 2000 to 2006Execute transformation strategy
► Phase II: Growth – 2007 to 2010 Celanese earnings growth strategy
► Ongoing: Value – Deliver solid financial results and shareholder value
Continue to create value in excess of the peer group
10
Acetyl Intermediates
Formaldehyde
Anhydride and esters
VAM
Acetic Acid
Differentiated Intermediates Specialty Products
Raw Materials
Building Block
Realigning the businesses to accelerate growth
Engineered Plastics
Nutrinova
Emulsions
Acetate
Engineered Plastics
Nutrinova
Emulsions
Acetate
Raw Materials
Advanced Engineered Materials –
AEM (Ticona)
Engineered Plastics
Consumer and Industrial
Specialties - CIS
Nutrinova
Emulsions/PVOH
Acetate
11
2007 – 2010: Celanese Earnings Growth Strategy
Celanese 2010 Objective:
$300 - $350 million improvement in EBITDA profile
Asia
Revitalization Organic
Balance Sheet
Innovation►Productivity
improvements more than offset inflation
►SG&A improvements
►Nanjing Complex
►Affiliates
►Consumer and Industrial Specialties
► Ticona – new products and applications
►Acetyls –continued greater than market growth in Acetic Acid and VAM
Operational Excellence
►Recapitalized balance sheet (April 2007)
►Continue to evaluate capital structure opportunities
Business Specific
$300-$350 million EBITDA Growth
12
Asia: Enhancing Celanese’s geographic lead
Note: Revenue breakdown based on Celanese 2006 consolidated net sales (does not include sales from equity and cost investments).
Approximately 50% of earnings from the fastest growing region
2006 Regional Split
Europe
Americas
Asia~30%
Europe
Americas
Asia25%
2010E Regional Split
Europe
Americas
Asia45-55%
Europe
Americas
Asia30-35%
RevenueRevenue
Earnings Earnings
13
Consumer Specialties (CS): Acetate drives earnings growth
1 EBITDA as reported excluding special charges, Restructuring in Operations, Other charges. 2 JV dividends from cost investments
Acetate Revitalization will continue to add incremental EBITDA
$220 -230MM
Acetate Operating EBITDA Impact2004 – 2008E
$50
$100
$150
$200
$250
2004 2005 2006 2007E 2008E
$ M
M
Acetate Seg. EBITDA JV Dividends APL
>100% Earnings Growth
1 2
Acetate Revitalization► Revitalization of North
American and European Businesses
► Expansion of China Joint Ventures
► Integration of Acetate Products Limited (APL)
14
Industrial Specialties (IS): Optimize / revitalize for growth and productivity
Marketplace Interface
Operational Excellence
2007 2008 2009
Focus on Controllables
Focus onInnovation
► Enhance customer focus► Revitalize innovation► Consolidate and streamline R&D
functions► Build on capabilities in NA / Asia
► Capture productivity gains► Consolidate manufacturing footprint (YE2008
completion) / enhance production capabilities► Streamline supply chain► Standardize processes, redesign workflows► Accelerate Six Sigma
> $50MM in incremental EBITDA opportunity by 2010
Maximize Business Performance
0
200
400
600
800
1,000
1,200
PVOH ('99)
Clariant('02)
Vinamul('05)
Acquiredbusiness
base
$M
M
Sales 2006E in MM$
Vertical Integration via Acquisition:$200 MM to $1,050 MM
#1 Global Vinyl Emulsions Producer
15
96 %
4 %
Standard Polymers
High Performance Polymers (HPP)Engineering Thermoplastics (ETP)
Global High Performance Polymer and Engineering Thermoplastics2006E: ~8 MM tons (2006E Growth = 6 %)
ABS, SAN, ASA: 4 %
PE = 34 % PP = 19 %
PET = 5 %
PU = 6 %
PVC = 17 % PS, EPS = 9 %
others = 3 %
Comprising: PA 6 & PA 66, PA 11 and PA 12, PC, POM, PBT, COPE, PET technical, PPE, COC & COP, UHMW-PE, PPS, LCP, High Performance Nylons, PEEK, PEI, PES & PSU, PTFE & other fluoropolymers
Range of Products
Perf
orm
ance
€ 100 / kg€ 10 / kg€ 3 / kg
€ 1 / kg
AEM: Focus on High Performance Polymers and Thermoplastics
16
0
100
200
300
400
500
600
2001 2002 2003 2004 2005 2006
Rev
enu
e ($
MM
)
AEM: Increase penetration in transportation; volume growth / product translation in non-transportation
Advanced Engineered Materialstype of resinsin lbs per vehicle
6
40
18
12
2001
Highest Current
2010E
2006E
Non-TransportationTransportation
AEM Non-Transportation Revenue Growth
53%47%
CAGR: 8%
% Non-Automotive Revenue
17
Acetyl Intermediates: Continue organic growth in excess of the market
60
80
100
120
140
160
180
200
1996 1998 2000 2002 2004 2006 2008E
Acetic Acid VAM GDP
Celanese Acetic Acid and Vinyl Acetate Normalized Growth1996-2008E
Celanese: 5.1% (6.3%2)Market3: 4.6%
► Favorable industry dynamics through 2009
► Historical “market-plus” growth continues
► Commercial production from Nanjing began in Q2 2007
$600 - $700 million increased revenues from the Nanjing complex by 2010
>$500 million from Acetyls
► Translate vinyl-based emulsions success to growing Asian market
11996 – 2008 annual growth 2Including the Acetex acquisition 3Source: Tecnon 4Source: CMAI
Gro
wth
CA
GR
1
Global GDP4: 3.1%
VAM
Acetic Acid
Celanese : 4.4% (5.3%2)Market3: 3.5%
18
Acetyl Intermediates: High utilization rates expected through 2009; unmatched operating cost advantage
1Based on effective capacity at 90% of nameplate (Celanese estimate)Source: Celanese estimates; Available Public Data
CapacityUtilization1(Nov, 2006): 91% 93% 92% 91% 91% 92%
0
2,000
4,000
6,000
8,000
10,000
12,000
2004 2005 2006E 2007E 2008E 2009E
KT
High Cost CapacityLow Cost CapacityDemand
Acetic Acid Supply-Demand Balance2009E Acetic Acid Cost Curve
based on Effective Capacity (kt)
0 2,000 4,000 6,000 8,000 10,000 12,000
By-prod
AO Plus™/Leading Competition
Conventional MeOH /CO
High Cost Supply
Pampa (under review)
Celanese technology
19
Execution…Growth…Value
► Phase I : Execution – 2000 to 2006Execute transformation strategy
► Phase II: Growth – 2007 to 2010 Celanese earnings growth strategy
► Ongoing: Value – Deliver solid financial results and shareholder value
Continue to create value in excess of the peer group
20
Celanese Corporation Financial Highlights
$0.71 $0.84Adjusted EPS
28%28%Effective Tax Rate
172.1174.6Diluted Share Basis
$310
$37--
$103
$152
$1,457
2nd Qtr 2006
$326
$106$265
($117)
$71
$1,556
2nd Qtr 2007
Operating EBITDA
Other Charges/Adjustments
Refinancing and Related Costs
Special Items
GAAP Net Earnings (Loss)
Operating Profit
Net Sales
in millions (except EPS)► Net sales increased 7% from the prior
year● Nanjing startup and improved
pricing partially offset reduced volumes in Chemical Products related to Clear Lake
● Volume increases in Ticona● Inclusion of APL sales in Acetate
Products► Operating profit decreased 53% due
to other expenses related to long-term management compensation and restructuring activities
► GAAP net earnings decreased to a loss on expenses related to the debt refinancing
► Adjusted EPS up 18% to $0.84/share► Operating EBITDA increased 5% to
$326
21
► Strong business fundamentals continue
► Continued volume growth in core business
Performance Products
► Improved earnings continue from revitalization efforts
► Integration of APL acquisition
Acetate Products
► Continue >2x GDP volume growth across transportation and non-transportation end-uses
► Continuing high raw material costs
Ticona
► Clear Lake impact to continue into third quarter – unit restarted early August
► Full production rates at Nanjing acetic acid facility
Chemical Products
2007 Business Outlook
2007 Guidance: Adjusted EPS $2.85 to $3.00
Operating EBITDA$1,180 to $1,220 MMClear Lake Impact($0.15) to ($0.25)
22
Well positioned for continued growth and value creation
$300 – $350 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
23
Appendix
24
Second Quarter 2007:► Reduced volumes due to unplanned outage of Clear Lake acetic
acid unit► Successful startup of Nanjing acetic acid unit partially offset volume
loss► Sales increased due to higher pricing, currency and continued
strong demand► Pricing strength could not offset margin impact of lower volumes
and higher raw material costs
$207$977
2nd Qtr 2006
$176 down 15%$1,002 up 3%2nd Qtr 2007
Operating EBITDANet Salesin millions
Chemical Products
25
Second Quarter 2007:► Net sales increase driven by strong volume growth (8%) and
currency effect (4%) ► Strong demand continues for all major products in Europe and Asia► Moderate growth in North American automotive and housing
applications supported by strong growth in other end markets► Volume growth partially offset by higher raw material and energy
costs
Ticona Technical Polymers
$66$230
2nd Qtr 2006
$70 up 6%$257 up 12%2nd Qtr 2007
Operating EBITDANet Salesin millions
26
► Increased revenues attributable to inclusion of APL acquisition in Q2► Continued operating margin improvement with revitalization program► Higher dividends from China ventures contributed to EBITDA improvement
Performance Products
► Continued volume growth in Sunett™ and favorable currency impacts did not fully offset decrease in non-core volumes
► Price reductions in line with company expectations
Acetate Products
$55$176
2nd Qtr 2006
$80 up 45%$235 up 34%2nd Qtr 2007
Operating EBITDANet Salesin millions
$21$48
2nd Qtr 2006
$21 $47 down 2%2nd Qtr 2007
Operating EBITDANet Salesin millions
27
Impact from Recent Strategic Initiatives
Balance Sheet Improvements:
$0.08 - $0.12$0.04 - $0.06$0.04 - $0.06Debt Refinancing
($0.21)($0.13)($0.08)Oxo Alcohol Divestiture
2006
($0.11)($0.07)($0.04)Edmonton Methanol Shut Down
Portfolio Enhancements:
$0.61 - $0.63
$0.77Q4
$0.71 - $0.73
$0.79Q3
$1.32 - $1.36Adjusted EPS (Comparable Basis)
$1.56Adjusted EPS (As Reported)HY06
► Divest non-core business lines● Closed sale of oxo alcohol business in Q1 2007 ● Discontinued methanol production unit in Q2 2007
► Capital structure opportunities● Debt refinancing completed in Q2 2007 (reduced debt by ~$113 MM and lowered interest
expense by ~$10-15MM per quarter)● Share repurchases (retired 2.4 million shares with Dutch auction and 8.5 million shares
with Board authorized plan – impacts not fully realized in EPS for Q2 2007)
28
Share Repurchase Program Impacts
0.50.0Restricted Stock Units
12.012.0Convertible Preferred Stock
5.23.1Stock Option Exercises
174.6
156.9
Q2
174.4
159.3
Q1
Weighted Average Diluted Shares Outstanding
Weighted Average Common Shares Outstanding
(amounts in millions)
► Share repurchase activity● Dutch auction – retired 2.4 million shares for approximately $72 million ● Board authorized plan – retired a total of 8.5 million shares at ~$38.88/share (program
completed as of July 23, 2007)► EPS impacts not fully realized for Q2 2007 based on weighted average calculation
(3.5)July share repurchases
149.2Outstanding at 7/23/07
Actual Common Shares Outstanding
1.3Stock option exercises
152.7Outstanding at 6/30/07
(7.3)Share repurchases through Q2
158.7Outstanding at 12/31/06
29
Project delays continue to allow increasing demand to absorb new supply
Operational in 1Q 2006; expansion in July, 2006
Completed, explosion 3 days later
Start 2005150KTSOPO
Construction not yet begun; Expected mid-2009
Construction not yet begun
Start 2008 500KT BP/Sinopec
Commercial Production in 2Q 2006December 2005Early 2005 300KT BP/FPC
Construction under way; Pending Litigation; Startup expected Mid-2007
No sign of constructionStart 2005 200KT Wujing
Commercial Production in July, 2006
Rumored to have started commissioning
Start 2005150KTFanavaran
Commercial Production mid-2005Operational mid-2005Early 2005150KTBP/Yaraco
Expected Late 2009
Website states Q3 2008
NA
Now commercializing
CE Investor Day 2005 Comments
Expected Mid- 2007; replaces high cost capacity
Late 2006200KTDaqing
Commercial Production in 1Q 2006June 2005200KTLunan
Pending Litigation; Expected mid-2009
Start 2008425KTSipchem
Expected Late 20092009200KTHualu Hengsheng
CE Investor Day 2006 UpdatesOriginal DateCapacityCompany
30
Reg G: Reconciliation of Diluted Adjusted EPSAdjusted 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 (168) 134 3 251 Non-GAAP Adjustments: Other charges and other adjustments 1 115 37 166 61 Refinancing costs 256 - 254 - Adjusted earnings from continuing operations before tax and minority interests 203 171 423 312 Income tax provision on adjusted earnings 2 (57) (48) (118) (87)Minority interests - (1) - (1)Adjusted earnings from continuing operations 146 122 305 224Preferred dividends (3) (2) (5) (5)Adjusted net earnings available to common shareholders 143 120 300 219Add back: Preferred dividends 3 2 5 5Adjusted net earnings for adjusted EPS 146 122 305 224
Diluted shares (millions)Weighted average shares outstanding 156.9 158.6 158.1 158.6Assumed conversion of Preferred Shares 12.0 12.0 12.0 12.0 Assumed conversion of Restricted Stock 0.5 - 0.2 - Assumed conversion of stock options 5.2 1.5 4.2 1.4 Total diluted shares 174.6 172.1 174.5 172.0Adjusted EPS 0.84 0.71 1.75 1.301 See Slide 32 for details2 The adjusted tax rate for the three and six months ended June 30, 2007 is 28% based on the original full year 2007 guidance.
Six Months EndedJune 30,
Three Months EndedJune 30,
31
Reg G: Reconciliation of Net Debt
Net Debt - Reconcilation of a Non-U.S. GAAP MeasureJune 30, December 31,
(in $ millions) 2007 2006Short-term borrowings and current installments of long-term debt - third party and affiliates 187 309Long-term debt 3,198 3,189Total debt 3,385 3,498Less: Cash and cash equivalents 470 791Net Debt 2,915 2,707
32
Reg G: Reconciliation of Other Charges and Other Adjustments
Reconciliation of Other Charges and Other Adjustments
Other Charges:
(in $ millions) 2007 2006 2007 2006Employee termination benefits 25 9 25 11 Plant/office closures - 2 - - Total restructuring 25 11 25 11 Insurance recoveries associated with plumbing cases - (2) - (3)Long-term compensation triggered by Exit Event 74 - 74 - Asset impairments 3 - 3 - Ticona Kelsterbach relocation 3 - 3 - Other - 3 1 4 Total 105 12 106 12
Other Adjustments: 1
(in $ millions) 2007 2006 2007 2006Executive severance & other costs related to Squeeze-Out - 13 1 23 Ethylene Pipeline Exit - - 10 Business Optimization 3 - 5 - Foreign exchange loss related to refinancing transaction 9 - 9 - Discontinued Methanol production 2 (2) 12 31 26Other - - 4 - Total 10 25 60 49
Total other charges and other adjustments 115 37 166 61 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.
June 30, June 30,
Three Months Ended Six Months Ended
Three Months Ended Six Months Ended
June 30, June 30,
33
Reg G: Reconciliation of Operating EBITDASe
gmen
t Dat
a an
d R
econ
cilia
tion
of O
pera
ting
Prof
it (L
oss)
to O
pera
ting
EBIT
DA
-
a N
on-U
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AAP
Mea
sure
.
(in $
mill
ions
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06N
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Che
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1,00
297
72,
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1,91
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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
June
30,
Six
Mon
ths
Ende
dJu
ne 3
0,
34
Reg G: Reconciliation of 2000 to 2005 Operating EBITDA
Total Celanese 2000 2001 2002 2003 2004 2005GAAP Operating Profit 78 -470 162 133 130 561Depreciation & Amortization 364 372 300 328 256 286Special charges & other adjustments 27 472 -1 6 340 57Equity earnings 18 12 23 39 37 61Cost dividends 40 41 35 53 38 88EBITDA as shown 528 427 519 559 801 1053
Ticona 2000 2001 2002 2003 2004 2005GAAP Operating Profit 90 -13 23 136 19 60Depreciation & Amortization 69 68 60 63 64 60Special charges & other adjustments -27 -8 8 -97 67 31Equity earnings 14 3 15 31 22 48Cost dividends 2 2 2 2 4 5EBITDA as shown 147 52 108 134 176 204
Performance Products 2000 2001 2002 2003 2004 2005GAAP Operating Profit 31 35 50 -49 29 51Depreciation & Amortization 33 28 7 8 12 13Special charges & other adjustments 6 4 0 106 20 1Equity earnings 0 0 0 0 1 0Cost dividends 0 0 1 1 3 -1EBITDA as shown 69 67 58 66 65 64