0000950123-06-015110 8-K 128 20061213 7.01 9.01 20061213 20061213 Celanese CORP 0001306830 2820 980420726 DE 1231 8-K 34 001-32410 061273021 1601 W. LBJ FREEWAY DALLAS TX 75234 972-443-4000 1601 W. LBJ FREEWAY DALLAS TX 75234 Blackstone Crystal Holdings Capital Partners (Cayman) IV Ltd. 20041022 8-K 1 y27957e8vk.htm FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): December 13, 2006 CELANESE CORPORATION (Exact Name of Registrant as specified in its charter) DELAWARE 001-32410 98-0420726 (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification No.) 1601 West LBJ Freeway, Dallas, Texas 75234-6034 (Address of Principal Executive Offices) (Zip Code) Registrant’s telephone number, including area code: (972) 443-4000 Not Applicable (Former name or former address, if changed since last report): Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) -------------------------------------------------------------------------------- Item 7.01 Regulation FD Disclosure On December 13, 2006, Celanese Corporation (the “Company”) announced that it will present its strategy for earnings growth and outlook for 2007. The Company will present at its Investor Conference on December 13, 2006 in New York. The conference will be webcast live on www.celanese.com, and a replay will also be available. A copy of the related press release, issued by the Company on December 13, 2006, is attached hereto as Exhibit 99.1.* A copy of the slide presentation related to the presentation given by Celanese Corporation at its Investors Conference on December 13, 2006 in New York, is attached hereto as Exhibit 99.2.* Item 9.01 Financial Statements and Exhibits. (c) Exhibits Exhibit Number Description 99.1 Press Release dated December 13, 2006* 99.2 Slide presentation related to the presentation given by Celanese Corporation at its Investors Conference on December 13, 2006 in New York* *Exhibit shall be deemed furnished to, but not filed with, the SEC in connection with the disclosure set forth in Item 7.01. -------------------------------------------------------------------------------- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CELANESE CORPORATION By: /s/ Steven M. Sterin Name: Steven M. Sterin Title: Vice President and Corporate Controller Date: December 13, 2006 -------------------------------------------------------------------------------- Exhibit Index Exhibit Number Description 99.1 Press Release dated December 13, 2006* 99.2 Slide presentation related to the presentation given by Celanese Corporation at its Investors Conference on December 13, 2006 in New York* *Exhibit shall be deemed furnished to, but not filed with, the SEC in connection with the disclosure set forth in Item 7.01. EX-99.1 2 y27957exv99w1.htm EX-99.1: PRESS RELEASE [[Image Removed: (CELANESE LOGO)]] Investor Information Celanese Corporation Investor Relations 1601 West LBJ Freeway Dallas, Texas 75234-6034 Mark Oberle Phone: +1 972 443 4464 Fax: +1 972 332 9373 mark.oberle@celanese.com Celanese Corporation Presents Strategy for Earnings Growth and 2007 Outlook at Investor Conference DALLAS, December 13, 2006 — Celanese Corporation (NYSE: CE), a global hybrid chemical company, will present its business strategy for earnings growth and 2007 outlook at its investor conference today at 8:30 a.m. in New York. The conference, hosted by David N. Weidman, president and chief executive officer, will be webcast live on www.celanese.com. “By successfully executing our strategies, we have transformed Celanese into an integrated company with leading franchises and impressive global positions,” Weidman said. “We are excited about our tremendous progress in positioning Celanese as a premier global chemical company with significant earnings growth potential.” Celanese announced strategies to improve its earnings profile and achieve between $300 million and $350 million in additional operating EBITDA growth between 2007 and 2010: • Expansion in Asia — Celanese will enhance its substantial position in Asia with the development of its Nanjing, China integrated chemical complex and continued growth of its strategic Asian affiliates. By 2010, the company expects to generate approximately 45% to 55% of its total earnings in this growing region. • Revitalization — Revitalization efforts have yielded significant savings and an increased earnings profile for the company’s Acetate Products business. Additionally, Acetate Products is expected to benefit from the impact of the company’s pending acquisition of Acetate Products Limited (APL). By 2010, Acetate Products expects continued strong earnings growth resulting in an annual operating EBITDA of approximately $220-$230 million, an increase of between $60 million and $100 million from its previous outlook. Building on Acetate Products’ successful efforts, the company will pursue additional revitalization opportunities in its emulsions and polyvinyl alcohol businesses. -------------------------------------------------------------------------------- Page: 2 of 5 • Innovation — The company plans to drive growth more than two times global gross domestic product in its Ticona business through 2010. With continued penetration in the automotive market and 8% average annual growth since 2000 in non-automotive markets, Ticona expects to increase its annual operating EBITDA profile by at least $100 million. • Organic Growth — The company’s chemical complex in Nanjing, with expected annual incremental revenue of between $600 million and $700 million by 2010, will drive organic growth in its acetyls, emulsions and engineered polymer businesses. In total, the company’s organic growth is expected to deliver approximately $150 million in incremental annual operating EBITDA. • Balance Sheet — Supported by strong cash generation and its efficient use, the company has identified significant earnings growth opportunities in its current capital structure. The company expects to generate more than $400 million of free cash flow in both 2006 and 2007, excluding the net proceeds of the previously announced divestiture of the oxo-alcohol businesses and the pending acquisition of APL. During the conference, the company will discuss priorities for using cash to increase shareholder value. • Operational Excellence — With a six-year track record of execution and a performance-based culture, Celanese will continue to make productivity improvements to more than offset inflation. The company is on track to meet its $400 million initial public offering productivity commitments by 2007. Celanese also announced a realignment of its businesses and associated leadership to drive strategic growth. The company has organized its businesses into three groups: Advanced Engineered Materials, Consumer and Industrial Specialties, and Acetyl Intermediates. “This business alignment supports our earnings growth objectives and groups Celanese businesses with similar dynamics and growth opportunities,” Weidman said. • Advanced Engineered Materials Advanced Engineered Materials (AEM), led by Lyndon Cole, includes the company’s Ticona technical polymers businesses and its engineered polymers equity affiliates. These businesses are positioned to drive earnings growth more than two times the global gross domestic product through 2010. With portfolio enhancement and global leading positions, AEM is targeting automotive growth driven by market penetration and substitution. Earnings growth in non-automotive areas will result from translation and application development as well as improved product offerings that meet customer needs. Overall, the company expects to increase the operating EBITDA profile of this group by $100 million. -------------------------------------------------------------------------------- Page: 3 of 5 • Consumer and Industrial Specialties Consumer and Industrial Specialties (CIS) includes the company’s Acetate Products business and the Industrial Specialties businesses of emulsions and polyvinyl alcohol products, led by Doug Madden. Emulsions and polyvinyl alcohol products, formerly associated with the Chemical Products segment, are now aligned with CIS to increase transparency and provide more detailed information on business performance. CIS also includes the Performance Products business, led by Eckart von Haefen. As specialty derivatives of acetyls, CIS businesses have similar consumer and end-use dynamics. Earnings growth for CIS will be bolstered by continued revitalization of the Acetate and Industrial Specialties businesses, as well as the company’s pending acquisition of APL. Collectively, CIS businesses target annual earnings growth totaling more than $100 million by 2010. • Acetyl Intermediates Acetyl Intermediates, led by John O’Dwyer, is comprised of intermediate chemicals including acetic acid, vinyl acetate monomer (VAM) and acetic anhydride. As an industry leader, Acetyl Intermediates is building on its advantaged feedstock positions, leading technology, and favorable industry structure to drive growth through 2010. The company’s Nanjing complex is on track to contribute between $600 million and $700 million of total annual revenue by 2010. Acetyl Intermediates will account for $500 million of this revenue growth as well as $100 million of additional operating EBITDA. The company also continues to pursue additional growth opportunities in acetic acid and VAM. Demand for acetyl products remains strong and limited capacity additions are expected to enter the market. The company updated its outlook with an expected favorable acetyl supply/demand balance through 2009. The company’s full-year 2006 guidance range for adjusted earnings per share remains between $2.70 and $2.80, or between $2.45 and $2.55 on a pro-forma basis adjusted for the oxo-alcohol divestiture. This guidance is at the upper end of original estimates for 2006 and includes benefits from lower raw material costs, volume growth in Europe for Ticona products and continued strong demand for acetyl products. The company expects adjusted earnings per share in 2007, excluding the oxo-alcohol business, to be between $2.60 and $2.90, with an estimated tax rate of 28%, and operating EBITDA to be between $1,130 million and $1,200 million. Earnings in 2007 are expected to reflect increased market penetration and volume for Advanced Engineered Materials, strong earnings growth in Consumer and Industrial Specialties, and favorable supply/demand with above market growth for Acetyl Intermediates. -------------------------------------------------------------------------------- [[Image Removed: (CELANESE LOGO)]] Page: 4 of 5 This conference will be available by webcast on www.celanese.com or by phone at the following numbers: Analyst Dial-in Number: 866.383.8009 Secondary Dial-in Number: 617.597.5342 Participant Passcode: 81967455 A replay of the conference call will be available on demand from 10:30 a.m. Central Time/11:30 a.m. Eastern Time on December 13, until 11 p.m. Central Time/midnight Eastern Time on December 20, at the following numbers: Primary Replay Number: 888-286-8010 Secondary Replay Number: 617-801-6888 Passcode: 50182611 As a global leader in the chemicals industry, Celanese Corporation makes products essential to everyday living. Our products, found in consumer and industrial applications, are manufactured in North America, Europe and Asia. Net sales totaled $6.1 billion in 2005, with approximately 60% generated outside of North America. Known for operational excellence and execution of its business strategies, Celanese delivers value to customers around the globe with innovations and best-in-class technologies. Based in Dallas, Texas, the company employs approximately 9,300 employees worldwide. For more information on Celanese Corporation, please visit the company’s website atwww.celanese.com. Forward-Looking Statements This release 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 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. Reconciliation of Non-U.S. GAAP Measures to U.S. GAAP This release and accompanying documents reflect 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. -------------------------------------------------------------------------------- Page: 5 of 5 • 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. EX-99.2 3 y27957exv99w2.htm EX-99.2: SLIDE PRESENTATION [[Image Removed]] Investor Day 2006 CEO Update David Weidman President and CEO -------------------------------------------------------------------------------- [[Image Removed]] Chemical Products 2006 Revenue (est): $4.6 B 2006 Op. EBITDA (est): $0.85 B Acetate Products 2006 Revenue (est): $0.7 B 2006 Op. EBITDA (est): $0.14 B Technical Polymers Ticona 2006 Revenue (est): $0.9 B 2006 Op. EBITDA (est): $0.25 B Performance Products 2006 Revenue (est): $0.2 B 2006 Op. EBITDA (est): $0.07 B 2006 Revenue1 (est)= $6.7 Billion 2006 Operating EBITDA1 (est)= $1.2 Billion 2006 Adjusted EPS (est)= $2.70 - 2.80 Global #1 Producer2 Cash Generator, Global #1 Producer2 Global #1 Producer in Our Key Products2 Global #1 Producer in Our Key Products2 A Leading Global Chemical Company 1 Includes Other Operating Segment, with Revenue (est) of $0.3 B and Operating EBITDA of ($0.1 B) 2Source:Tecnon and SRI. (2005 estimates) -------------------------------------------------------------------------------- [[Image Removed]] An Attractive Hybrid Business Model Commodity Chemicals Intermediate Products Balance of intermediate & specialty products Oil & Gas Consumer Products Motorola Toyota Sherwin-Williams Siemens Dow* Lyondell Methanex Rohm & Haas* ICI* Celanese Specialty Products Dow* Eastman* PPG* FMC* * Celanese internal peer group Exxon BP Shell -------------------------------------------------------------------------------- [[Image Removed]] 40% 35% 25% Balanced Global and End Market Positions Notes: Includes oxo alcohol and polyol derivative divestiture and pending APL acquisition End use breakdown based on 2006 est. external sales revenue Geographic breakdown based on 2005FY revenue to external customers by destination Other 11% Construction 8% Paints & Coatings 14% Automotive 9% Consumer / Medical Applications 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% -------------------------------------------------------------------------------- [[Image Removed]] Execution...Growth...Value Phase I : Successful Transition - 2000 to 2006 Execute transformation strategy Growing value Phase II: Deliver Growth - 2007 to 2010 Build geographic lead: Increase presence in Asia Grow downstream specialties: Drive business specific opportunities Align organization: Better address growth opportunities Continue to create value in excess of the peer group -------------------------------------------------------------------------------- [[Image Removed]] 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 Acquisitions Divestitures Divestitures Total Revenue Impact1 Air Products PVOH Oxo alcohols Vectran Acquisitions Clariant Emulsions Polyol derivatives Emulsion Powders $1.8 B Vinamul Trespaphan DH Actives Acetex Nylon Estech JV APL (pending) Acrylates Emulsions Greece Divestitures PBI COC ($1.8 B) Fuel Cells 1Data from the year in which the transaction occurred -------------------------------------------------------------------------------- [[Image Removed]] Focus and strengthen portfolio % Revenue from Products Holding #1 or #2 Position % Revenue from Specialty Businesses 2006E1 2000 2000 2006 3rd Qtr 4th Qtr Specialty 1804 3376 90 20.4 Intermediate 1538 2452 34.6 31.6 Commodity 1614 327 Total Revenue $6.2 B Total Revenue $4.9 B 1Includes oxo alcohol and polyol derivative divestiture and pending APL acquisition 2~95% #1 or #2 with the planned 2007 closure of all Celanese methanol production 3Primarily methanol and formaldehyde revenue Non-differentiated Intermediates Specialty Products Differentiated Intermediates 2006E1,2 2000 Chemical Products Ticona Acetate Nutrinova ~70% Chemical Products Ticona Acetate Nutrinova ~95% -------------------------------------------------------------------------------- [[Image Removed]] Productivity on the bottom line Relentless productivity improvements Total Employees; EBITDA 2000-20061 2000 2001 2002 2003 2004 2005 2006E EBITDA 533 431 517 555 801 1053 1215 Number of Employees 100 86.7 84 76.6 72.5 61.6 60.9 13.2 11.8 10.7 9.5 9.1 9.3 9.3 Celanese Operational Excellence 6-year track record of execution Continue capture of Celanese specific opportunities ~$80 million in additional CE specific savings in 2007 Ongoing productivity to more than offset inflation Continuing growth in existing assets Synergies to enable growth through future acquisitions 1Excludes oxo alcohol and polyol derivative divestiture and pending APL acquisition Note: EBITDA references are Operating EBITDA, as defined by the Company, unless otherwise noted -------------------------------------------------------------------------------- [[Image Removed]] Significantly improved earnings profile since 2000 Based on Celanese estimates 1Excludes oxo alcohol and polyol derivative divestiture and pending APL acquisition All numbers are based on CE estimates Operating EBITDA Growth1 2000 - 2006E ($MM) 300-310 125-130 90-95 110-115 40-45 528 ~1,200 Baseline 2000 Volume Margin Increase in Earnings from Affiliates Portfolio Optimization Cost Reduction net of Inflation 2006E -------------------------------------------------------------------------------- [[Image Removed]] 0 YE 2000 YE 2001 YE 2002 YE 2003 YE 2004 YE 2005 Current Equity 0.971514271 0.936474345 1.107965322 2.017901907 2.538804386 3.177744918 3.935 Debt 1.518 1.0433 0.6196 0.4416 2.567 3.022 2.936 Enterprise value growth leads peer group Celanese Enterprise Value Growth 2000 - 2006YTD Debt and Market Capitalization ICI Eastman Dow PPG Rohm and Haas FMC Celanese East -0.051 0.006 0.006 0.016 0.019 0.068 0.183 CE: 18% CAGR Enterprise Value Growth 2000 - 2006YTD CAGR Market Capitalization Debt Track record of growing value $6.9 B $2.5 B Equity value as of December 8, 2006. Source: Thompson Financial; Company 10Ks -------------------------------------------------------------------------------- [[Image Removed]] Execution...Growth...Value Phase I : Successful Transition - 2000 to 2006 Execute transformation strategy Growing Value Phase II: Deliver Growth - 2007 to 2010 Build geographic lead: Increase presence in Asia Grow downstream specialties: Drive business specific opportunities Align organization: Better address growth opportunities Continue to grow value in excess of the peer group -------------------------------------------------------------------------------- [[Image Removed]] 2007 - 2010: Celanese Earnings Growth Strategy Celanese 2010 Objective: $300 - $350 million in additional EBITDA growth Asia Revitalization Organic Balance Sheet Innovation Productivity improvements more than offset inflation Nanjing Complex Affiliates Acetate Emulsions Ticona - new products and applications Acetyls - continued greater than market growth in Acetic Acid and VAM Operational Excellence Evaluate capital structure opportunities Business Specific $300-$350 million EBITDA Growth -------------------------------------------------------------------------------- [[Image Removed]] Asia: Enhancing Celanese's geographic lead *Based on Celanese 2005 consolidated net sales (does not include sales from equity and cost investments). Approximately 50% of earnings from the fastest growing region 2006E Regional Split Americas Europe Asia East 40 35 25 Europe Americas Asia ~30% Americas Europe Asia East 35 40 25 Europe Americas Asia 25% Americas Europe Asia East 25 25 50 2010E Regional Split Europe Americas Asia 45-55% Americas Europe Asia East 33 33 33 Europe Americas Asia 30-35% Revenue Revenue Earnings Earnings -------------------------------------------------------------------------------- [[Image Removed]] Revitalization and acquisition: Acetate drives earnings growth 1 EBITDA as reported excluding special charges, Restructuring in Operations, Other charges. 2 JV dividends from cost investments 3Acquisition Pending Revitalization opportunities in other businesses 2004 2005 2006E 2007E 2008E Acetate Seg. EBITDA 100 108 121 152.2 156.7 JV Dividends 4 2 21 30 32 APL 20 40 $220 - 230MM >100% Earnings Growth Underway: Acetate Continue earnings growth through 2008/2009 Integrate Acetate Products Limited (APL) Initiated: Emulsions/PVOH Enhance customer and regional focus Reduce product complexity Drive significant productivity improvement through operational excellence Ongoing: Performance Products Support customer formulation development in new products Acetate Operating EBITDA Impact 2004 - 2008E 1 3 2 -------------------------------------------------------------------------------- [[Image Removed]] EBITDA profile increase by ? $100 MM by 2010 Application and Customer Innovation: Ticona to drive >2x GDP growth ~$250 MM 2006E EBITDA >$350 MM 2010 EBITDA Profile Drive >2x GDP Growth through 2010 Translation of existing polymers to new markets Continued Affiliate growth Innovation and new product development Polymer modifications Accelerating growth in non-automotive applications Increase automotive market share and pounds per vehicle Ticona Operating EBITDA Growth 2007-2010 -------------------------------------------------------------------------------- [[Image Removed]] Organic growth: Acetyls continued success 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006E 2007E 2008E Acetic Acid 100 107.3442623 111.7377049 112.2819672 117.252459 118.4393443 128.1967213 131.7377049 143.8557377 160.0655738 177.1803279 190.295082 196.852459 VAM 100 112.3618197 106.5369898 120.2912415 116.0182823 103.4545068 116.0820578 120.8652211 132.1215986 137.329932 144.3452381 148.8095238 172.1938776 GDP 100 103.7 106.2925 109.5875675 113.9710702 115.6806363 117.7628877 120.9424857 125.7801851 130.0567114 134.8688097 139.3194804 144.0563428 VAM 100 112.3618197 106.5369898 120.2912415 116.0182823 103.4545068 116.0820578 120.8652211 132.1215986 145.3018707 160.2891156 Celanese Acetic Acid and Vinyl Acetate Normalized Growth1996-2008E Celanese Acetic Acid : 5.1% (6.3%1) Market Acetic Acid2: 4.6% Celanese VAM: 4.4% (5.3%1) Market VAM2: 3.5% 1996 - 2008E Global GDP3: 3.1% Favorable industry dynamics through 2009 Historical "market-plus" growth continues Commercial production from Nanjing begins in 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 1Including the Acetex acquisition 2Source: Tecnon 3Source: CMAI Growth CAGR -------------------------------------------------------------------------------- [[Image Removed]] Goal for 2007 and beyond: more than offset inflation Operational Excellence: more than offset inflation 2001 2002 2003 2004 2005 2006E 2007 Target Fixed cost reduction 49.2 93.7 72.6 81 116.2 77.1 78 Variable and energy improvement 8 33.6 52.9 58.6 115.7 96.8 72 75 75 75 75 75 75 Overall Company Productivity1 average fixed cost inflation $ millions (year-over-year cost savings) 1Does not include productivity from divested businesses -------------------------------------------------------------------------------- [[Image Removed]] Acetyl Intermediates Formaldehyde Anhydride and esters VAM Acetic Acid Differentiated Intermediates Specialty Products Raw Materials Building Block Realigning the businesses to accelerate growth Legend Nutrinova Chemicals Acetate Ticona Engineered Plastics Nutrinova Emulsions Acetate Engineered Plastics Nutrinova Emulsions Acetate Raw Materials Advanced Engineered Materials (AEM) Engineered Plastics Consumer and Industrial Specialties (CIS) Nutrinova Emulsions Acetate -------------------------------------------------------------------------------- [[Image Removed]] Oxo Alcohol Divestiture 2006 Revenue (est): $0.7 billion 2006 Op. EBITDA Margin (est.): ~10% Consumer and Industrial Specialties 2006 Revenue (est): $2.2 billion 2006 Op. EBITDA Margin (est.): ~16% Advanced Engineered Materials 2006 Revenue (est): $0.9 billion 2006 Op. EBITDA Margin (est.): ~29%3 2006 Pro-forma Revenue (est.) = $6.0 Billion1,2 New organizational alignment Acetyl Intermediates 2006 Revenue (est): $2.9 billion 2006 Op. EBITDA Margin (est.): ~23%3 Increased focus on each business' growth opportunities Emulsions PVOH AT Plastics Acetic Acid Vinyl Acetate Acetic Anhydride Other Acetyl Derivatives IBN Sina Affiliate Ticona and Affiliates Industrial Specialties Acetate and Affiliates Performance Products 1Includes oxo alcohol and polyol derivative divestiture and excludes pending APL acquisition 2Does not include Other Operating Segment and Intersegment eliminations 3Does not include the additional proportional EBITDA from equity affiliates -------------------------------------------------------------------------------- [[Image Removed]] Celanese: Well positioned for growth Group Asia Revitalization Innovation Organic Balance Sheet Operational Excellence Consumer and Industrial Specialties X X X X Advanced Engineered Materials X X X X Acetyl Intermediates X X X Celanese Corporate X Primary Growth Focus Operating EBITDA EPS $300 - $350 million in additional EBITDA plus EPS potential by 2010 -------------------------------------------------------------------------------- [[Image Removed]] Consumer and Industrial Specialties Doug Madden President, Celanese Acetate, AT Plastics, Emulsions & PVOH -------------------------------------------------------------------------------- [[Image Removed]] Oxo Alcohol Divestiture 2006 Revenue (est): $0.7 B 2006 Op. EBITDA Margin (est.): ~10% Consumer and Industrial Specialties 2006 Revenue (est): $2.2B 2006 Op. EBITDA Margin (est.): ~16% Advanced Engineered Materials 2006 Revenue (est): $0.9 B 2006 Op. EBITDA Margin(est.):~29%3 2006 Pro-forma Revenue (est.) = $6.0 Billion1,2 Consumer and Industrial Specialties Group Acetyl Intermediates 2006 Revenue (est): $2.9 B 2006 Op. EBITDA Margin (est.): ~23%3 Increased focus on each business' growth opportunities Emulsions PVOH AT Plastics 2006 Revenue (est): $1.3 B 2006 Op. EBITDA Margin (est.): ~10% Industrial Specialties 2006 Revenue (est): $0.7 B 2006 Op. EBITDA Margin (est.): ~22% Acetate and Affiliates 2006 Revenue (est): $0.2 B 2006 Op. EBITDA Margin (est): ~38% Performance Products 1Includes oxo alcohol and polyol derivative divestiture; excludes pending APL acquisition 2Does not include Other Operating Segment 3Does not include the additional proportional EBITDA from equity affiliates -------------------------------------------------------------------------------- [[Image Removed]] Consumer and Industrial Specialties: A significant opportunity Consumer and Industrial Specialties background Proven track record of revitalization and growth in Acetate Growth and innovation opportunity in Industrial Specialties Successful life-cycle management in Nutrinova -------------------------------------------------------------------------------- [[Image Removed]] Similar business dynamics and earnings growth opportunities Over 1/3 of total Celanese revenue All specialty derivatives of Acetyl Intermediates Businesses less sensitive to economic cycles Similar consumer / end use dynamics Stable cash generation Earnings growth through revitalization and innovation 2006E Pro-forma Revenue $6.0B1,2 Advanced Engineered Materials Acetate Performance Products Industrial Specialties Acetyl Intermediates 1Includes oxo alcohol and polyol derivative divestiture; excludes pending APL acquisition 2Does not include Other Operating Segment -------------------------------------------------------------------------------- [[Image Removed]] Aligned to deliver on unmet customer needs Tailoring innovative solutions Key Trends CIS Group Competitive Differentiator Paints, Coatings & Adhesives (Emulsions/PVOH) Paints, Coatings & Adhesives (Emulsions/PVOH) Paints, Coatings & Adhesives (Emulsions/PVOH) Paints, Coatings & Adhesives (Emulsions/PVOH) Strong growth in developing markets Low VOC requirements Continued growth in convenience items (non-wovens) Industrial Specialties Global footprint, Innovation Food & Beverage (Nutrinova) Food & Beverage (Nutrinova) Food & Beverage (Nutrinova) Food & Beverage (Nutrinova) Multiple reduced-sugar product offerings Blending of sweeteners and flavors to enhance taste Performance Products Product quality, manufacturing excellence Filter Media (Acetate) Filter Media (Acetate) Filter Media (Acetate) Filter Media (Acetate) Strong tobacco growth in Asia Increasing filter length and filter design Acetate Global footprint, low-cost manufacturing -------------------------------------------------------------------------------- [[Image Removed]] Major Structural Changes to the Businesses 1999 2006 APL acquisition announced Divested Emulsion Powders Acquired Air Products PVOH Acquired Clariant Emulsions Launched Acetate Revitalization Completed China venture tow expansions Improved product portfolio Built the #1 global vinyl-based emulsions business Extended global reach Exited Acetate Filament Acquired Vinamul Commenced construction of Emulsion plants in China Acquired AT Plastics Revenue 1999: $1.1B Revenue 2006: $2.2B -------------------------------------------------------------------------------- [[Image Removed]] Acetate: Revitalization continues to deliver earnings growth Timeframe 2002 2003 2004 2005 2006 2007 Restructuring/Repositioning China venture tow expansions Filament exit / site optimization Historical Modest cash generation Complete Complete Beyond 2007 Maximize cash generation Selective & sustainable growth China venture flake expansion APL Acquisition (pending) Integrate the business Capture synergies 2008 2009 -------------------------------------------------------------------------------- [[Image Removed]] Acetate Products Limited (APL): A strategic fit Broader customer mix and reach Brings Flake integration in Europe Adds film business Increases Acetyl internal consumption 1Assumes GBP= $1.87 Acquisition amount: $~110MM1, debt free, includes working capital 2005E revenue: ~$230MM1 EBITDA margin: high single digit - low double digit historically Significant synergies expected North America 2005 North America 2007E Europe 2005 Europe 2007E China Ventures 2005 to 2007E Flake 4 sites 2 sites 0 sites 1 site Expanded Tow 3 sites 2 sites 1 site 3 sites Expanded Specialty Film na. na. na. 1 site na. Filament 2 sites Fully exited na. na. na. Financial Impact Strategic Impact Improved Operations Footprint -------------------------------------------------------------------------------- [[Image Removed]] Acetate: Uniquely positioned in Asia, particularly China Region with largest demand China represents 30% of global tow market Above average growth Tow growth projected at 2- 3% per year in China versus 1-2% in NA/EU Extending leadership All expansions on-stream early 2007 Evaluating next stage opportunities 2005 2006E 2007E 2008E East 2 21 30 32 Source: Celanese Estimates Tremendous growth in earnings and cash flow Dividends from China Ventures $MM -------------------------------------------------------------------------------- [[Image Removed]] 2004 2005 2006E 2007E 2008E Segment EBITDA 100 108 119 150 152 JV Dividends 4 2 21 30 32 APL 20 35 Acetate: Strong earnings growth continues $220 - $230 MM >100% improvement 2004 2008E Sales Revenue 700 650 220 1 2 1 EBITDA as reported excluding special charges, Restructuring in Operations, Other charges. 2 JV dividends from cost investments 3Acquisition Pending 3 -------------------------------------------------------------------------------- [[Image Removed]] Looking Ahead: Realizing the Potential Industrial specialties: building a premier franchise Positioned via Acquisition: $200 MM to $1,050 MM Invested, Developed, Became Leader # 1 vinyl emulsions producer New product introduction Optimized R&D centers Continuous improvement - selective revitalization opportunities Technology - Market Driven Innovation Globalizing -Translating VAE Success to Asia PVOH ('99) Clariant ('02) Vinamul ('05) Acquired business base Buffer 220 670 Company 220 450 380 Total 1050 Sales 2006E in MM$ Incremental EBITDA opportunity of ~$50MM -------------------------------------------------------------------------------- [[Image Removed]] Optimize / revitalize Industrial Specialties for growth and productivity Marketplace Interface Operational Excellence 2007 2008 2009 Focus on Controllables Focus on Innovation Enhance customer focus Consolidate sites/ capability Reduce complexity Accelerate Six Sigma Capture productivity gains Consolidate operations Streamline supply chain Standardize processes, redesign workflows -------------------------------------------------------------------------------- [[Image Removed]] Translating Vinyl Acetate success to Asia US Europe China Vinyls 0.954 0.472 0.244 100% acrylic 0.572 0.356 0.271 Styrene acrylics 0.274 0.472 0.186 Global Latex Emulsions Market1 Why China and Why Vinyls? Demand in China growing at >10% Diverse end-market segments Good value proposition versus competitive systems Meets low VOC requirements 1Excludes SBR, other minor latexes & powders Source: Kline Synthetic Latex Polymers Market Analysis Europe 2005, North America 2004 and China 2006 1.8 0.7 1.3 -------------------------------------------------------------------------------- [[Image Removed]] Translating Vinyl Acetate success to Asia VAE Case Study Global VAE Volume Celanese Advantages in VAE Formulation expertise Technological superiority Monomer integration Local production assets Celanese Nanjing VAE plant close to demand Well positioned to drive VAE growth in China 1 Kline Synthetic Latex Polymers Market Analysis Europe 2005, North America 2004 and China 2006 USA Europe China 2005 253 152 73 Celanese Share of Sales 70 80 ~50% ~25% kt 2010 projected Celanese China 1 2010 projected China -------------------------------------------------------------------------------- [[Image Removed]] Stable earnings and cash flow from Performance Products (Nutrinova) Food ingredient business: High intensity sweetener (Sunett(r)) Food protection ingredients (Sorbates) Blends with flavors/other sweeteners drive penetration Leading global position with key customers: Coca Cola, Wrigley, Pepsi, Kraft, Cadbury (Adams / Schweppes) Beverages 0.74 Confections / Gums 0.15 Other 0.11 Beverages Confections/ Gums Other Sunett(r) End-Use Applications -------------------------------------------------------------------------------- [[Image Removed]] EBITDA profile increases ?$100 MM by 2010 Consumer and Industrial Specialties Delivering Sustainable Earnings Improvement Acetate - Revitalization, China growth and APL acquisition Emulsions/PVOH - Technology, substitution, growth regions Nutrinova - Grow volumes, formulation development Collectively - Attractive, Growing and Profitable ~$350 MM 2006E EBITDA ? $450 MM 2010 EBITDA Profile Success factors Achieve ? $ 100mm in Earnings Growth -------------------------------------------------------------------------------- [[Image Removed]] Advanced Engineered Materials Lyndon Cole Executive Vice President & President Ticona -------------------------------------------------------------------------------- [[Image Removed]] Oxo Alcohol Divestiture 2006 Revenue (est): $0.7 B 2006 Op. EBITDA Margin (est.): ~10% Consumer and Industrial Specialties 2006 Revenue (est): $2.2 B 2006 Op. EBITDA Margin (est.): ~16% Advanced Engineered Materials 2006 Revenue (est): $0.9 B 2006 Op. EBITDA Margin (est.): ~29%3 2006 Pro-forma Revenue (est.) = $6.0 Billion1,2 New organizational alignment Acetyl Intermediates 2006 Revenue (est): $2.9 B 2006 Op. EBITDA Margin (est.): ~23%3 Increased focus on each business' growth opportunities Ticona and Affiliates Industrial Specialties Acetate and Affiliates Performance Products 1Includes oxo alcohol and polyol derivative divestiture; excludes pending APL acquisition 2Does not include Other Operating Segment 3Does not include the additional proportional EBITDA from equity affiliates -------------------------------------------------------------------------------- [[Image Removed]] Established track record for profitable growth Advanced Engineered Materials business model Growth expectations Advanced Engineered Materials is well positioned for continued growth -------------------------------------------------------------------------------- [[Image Removed]] Five-year track record of earnings growth Substantial volume growth Regional growth through affiliates Cost reductions help to offset margin compression Portfolio optimization enhances earnings profile AEM Operating EBITDA1 2001 Volume Affiliates Margin Net of Cost Reduction and Currency Portfolio Optimization 2006E Ghost 0 52 182 222 222 0 Actuals 52 130 50 10 30 251 1 Data based on estimates -------------------------------------------------------------------------------- [[Image Removed]] 1999 2000 2001 2002 2003 2004 2005 9M 2006 Ost -6.7 -6.2 -12.7 -6.2 -0.5 0.5 -1.2 5.3 Substantial margin improvement relative to peer group Peer group: corresponding segments of BASF, DSM, DuPont, GE Plastics, Solvay Plastics Zero line reflects peers average - all figures restated - Ticona figures 2005 without special items and COC effects Excluding effects from Special Charges and other charges Normalized AEM and peers' EBIT Impact of affiliate dividends further enhances AEM performance -------------------------------------------------------------------------------- [[Image Removed]] Established track record for profitable growth Advanced Engineered Materials business model Growth expectations Advanced Engineered Materials is well positioned for continued growth -------------------------------------------------------------------------------- [[Image Removed]] 96 % 4 % Standard Polymers High Performance Polymers (HPP) Engineering Thermoplastics (ETP) Global High Performance Polymer and Engineering Thermoplastics 2006E: ~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 Performance € 100 / kg € 10 / kg € 3 / kg € 1 / kg Focus on High Performance Polymers and Thermoplastics -------------------------------------------------------------------------------- [[Image Removed]] Leading position in > 80 % of sales Strong product portfolio Product #1 or #2 Transportation Electrical & Electronics Consumer & Appliance Industrial Medical Hostaform(r) (Polyacetals) X X X X GUR(r) (Ultra-high molecular weight PE) X X X Celanex(r) (Polyester Engineering Resins) X X X X Vectra(r) (Liquid Crystal Polymer) X X X Celstran(r) (Long fiber reinforced thermoplastics) X X Fortron(r) (Polyphenylensulfide) X X X -------------------------------------------------------------------------------- [[Image Removed]] Automotive E&E* Industrial Consumer Appliances Alternate Fabrication Medical Others 43 7 12 11 16 5 6 Revenue by end use market 2006E~ $920MM Transportation 47% Electrical & Electronics 8% Medical 5% Industrial 10% Alternate Fabrication 12% Consumer & Appliance 12% Other 6% Exposure to a broad range of end-use markets... ...many with growth in excess of global GDP -------------------------------------------------------------------------------- [[Image Removed]] Fueling growth with non-automotive applications 2001 2002 2003 2004 2005 2006E Sales automotive 365 413 425 423 390 390 Sales non-automotive 323 381 425 440 461 485 Volume (tons) 100 110 120 150 200 250 Steady overall growth for AEM since 2001 6% total revenue CAGR Non-automotive growth is the key driver 8% CAGR in non- automotive sales since 2001 Increased diversity to end- use markets AEM Non-Automotive Revenue Growth 53% 47% CAGR: 8% % Non-Automotive Revenue -------------------------------------------------------------------------------- [[Image Removed]] Supporting customer growth with global facilities 2006E Sales by Region Amerika Europa Asien/Pazifik Ost 24.6 25.8 49.7 Europe 25% America 25 % Asia/Pacific 50 % Note: Regional split refers to Ticona sales + Polyplastics sales -------------------------------------------------------------------------------- [[Image Removed]] Continuous investment in our global franchises Core Investments Increased POM capacity at Kelsterbach and Bishop Doubled LCP capacity in Shelby Will build a new 20 kt GUR plant in China by 2008 Affiliate Investments Finalized POM capacity in Nantong Investing in the largest global PPS plant at Wilmington (Fortron Industries) 2001 2002 2003 2004 2005 2006E EBITDA 46 91 103 128 150 196 2001 2002 2003 2004 2005 2006E Equity earnings and affiliates 3 16 29 48 54 56 2 Does not include proportional EBITDA from affiliates Affiliate EBITDA Growth2 Ticona Core EBITDA Growth1 1 EBITDA as reported excluding equity earnings and dividends -------------------------------------------------------------------------------- [[Image Removed]] Established track record for profitable growth Advanced Engineered Materials business model Growth expectations Advanced Engineered Materials is well positioned for continued growth -------------------------------------------------------------------------------- [[Image Removed]] Innovation New product development Polymer modification New polymers for existing applications / replacing of competing substrates new Products Markets Translate existing polymers to new markets new Penetration into existing markets and end-users Regional growth Increasing market share and pounds per vehicle existing existing Regional Positioning Development Process AEM Employees Customer Relationship Comprehensive Approach to Growth -------------------------------------------------------------------------------- [[Image Removed]] Global CAGR: 6.2% Europe NA Japan Asia without Japan Other Ost 3267 2445 985 3854 495 West Nord 2005: 8,100 kt 2010: 10,900 kt Source: Global Insight, May 2006; SRI Thermoplastics Outlook 2005; Top Right ETP 2005; CE estimates; AMI EU 2005; Freedonia ETP in NA 2006 Europe NA Japan Asia without Japan Other Ost 2467 1871 814 2515 318 West Nord Africa / Middle East Latin America Asia without Japan Japan Europe North America CAGR Minimum growth rate 0.06 0.06 0.07 0.02 0.03 0.04 0.062 Range 0.01 0.01 0.01 0.02 0.02 0.01 Asia Rest of World AEM 50% 50% Market 40% 60% 2005 Regional Exposure Well represented in fastest-growth region of the world -------------------------------------------------------------------------------- [[Image Removed]] Development Processes: Foundation of Performance Business Technology Plan Sets 3-5 year objectives Innovation roadmap Six Sigma (DFSS/DMIAC/Lean) Tools to resolve critical issues / improve streamline process Gate Process Defines new product development process Identifies critical issues Reduce innovation cycle time Improve quality and marketability of products Minimize development risk Improve efficiency of development Processes add rigor to optimize and shorten development cycle -------------------------------------------------------------------------------- [[Image Removed]] Accelerating growth with close customer relationships Key Drivers Growth Platforms Advanced Acetal Advanced High Temperature Resins Translation and application development - non automotive Continued automotive application innovation Development Pipeline since 2004 (Value of customer-driven projects in the pipeline) Pipeline value has increased 40% since 2004 Growth platforms initiated 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06 3Q 06 Normalized Value 40% Increase -------------------------------------------------------------------------------- [[Image Removed]] Safety Sensors enable Intelligent Transportation Systems Energy Efficiency LED in cars - less energy for more comfort and safety Fuel Efficiency Light weight - Award winning Celstran(r) Large Parts AEM products positioned to meet evolving market requirements Media resistance Low moisture absorption Heat distortion High impact strength Excellent creep strength Electrical and die- electrical behavior AEM product advantages Safety Active Safety Systems Intelligent Transportation Systems Environmental Energy Efficiency Fuel Efficiency Weight Reduction Automation, convenience Requirements -------------------------------------------------------------------------------- [[Image Removed]] Automotive Volume Growth 2001 2002 2003 2004 2005 2006E Europe 44854 49381 50667 50974 57269 58020 NA 46122 49217 45129 43986 45109 43299 Asia 22209.75 26676.45 30145.05 33925.5 37838.7 42167.25 Asia1 Europe North America 1Including affiliates Polyplastics / excluding Kepco and Fortron Well positioned regionally and increasing penetration per vehicle Advanced Engineered Materials Advanced Engineered Materials type of resins in lbs per vehicle 2001 Highest Current 2010E 2006E -------------------------------------------------------------------------------- [[Image Removed]] Accelerated growth in non- automotive applications Safety Medical Cookware Industrial Various Non-Automotive sensors, Lithium-Ion Batteries, Electric Shielding Applications Filters for Water filtration and Air pollution Performance Fibers for Ballistics, Protection, Engineering ropes "Hot-Spots" in the kitchen - Industrial and private cooling devices Dosage Systems, Tele-Medicine, Surgical devices, Sterile Packaging LED LED applications in Automotive, Residential, Public Areas -------------------------------------------------------------------------------- [[Image Removed]] 2005 2006E 2007E 2008E 2009E 2010E 2011E Global shipments in $ Mio. 4800 6600 7273 8015 8833 9734 10726 Incremental growth opportunity : LED Innovative applications for entire portfolio Use up to 90% less energy than current technologies Reduce carbon emission by ~200 MM tons 10x to 100x longer lifetime than traditional bulb technologies More reliable - no moving parts Less disposable waste materials Global LED shipments in $ MM 14% CAGR -------------------------------------------------------------------------------- [[Image Removed]] Incremental growth opportunity: well positioned to capture global sensor growth 1995 2000 2005 2010E 2015E US 7.6 9.4 10.1 12.1 14.7 WE 8 10.4 11.3 13.8 16.1 Japan 6.6 7.9 8.7 10.5 11.7 Asia/Pacific 2.8 4.6 8.4 13.7 19.6 ROW 4 6.9 8.7 12.4 16.4 World Sensor Demand Process Management & Control Systems Home Electronics and Security Systems Robotics for Home and Industry Chemical Plant Management & Control Household Appliances & Electronics Consumer & Appliances Airline Industry Military 10% Asia and 6% global annual growth continues through 2010 -------------------------------------------------------------------------------- [[Image Removed]] EBITDA profile increase by ? $100 MM by 2010 ?2x GDP Growth through 2010 Achieve >2X GDP growth through: Innovation and new product development Translation of existing polymers to new markets Polymer modifications Current market penetration 2001 EBITDA ? $350 MM 2010 EBITDA Profile $52 MM 2006E EBITDA ~$250 MM -------------------------------------------------------------------------------- [[Image Removed]] Opening markets with new applications and offerings 2010 and beyond: new offerings enable market growth greater than 2x GDP Expanding Products - New Offerings Expanding Functionality Expanding Opportunity Focus on Polymer Chemistry Improved melt strength Improved impact properties Toughness Improved chemical resistance Expanded processability Higher service temperatures Improved surface properties Large and small appliances Safety systems Portable water/irrigation Gears Transportation power systems Fuel systems -------------------------------------------------------------------------------- [[Image Removed]] Forward Looking Statements, Reconciliation and Use of Non-GAAP Measures to U.S. GAAP -------------------------------------------------------------------------------- [[Image Removed]] Acetyl Intermediates John O'Dwyer President, Acetyl Intermediates, Celanese Asia -------------------------------------------------------------------------------- [[Image Removed]] Oxo Alcohol Divestiture 2006 Revenue (est): $0.7 B 2006 Op. EBITDA Margin (est.): ~10% Consumer and Industrial Specialties 2006 Revenue (est): $2.2 B 2006 Op. EBITDA Margin (est.): ~16% Advanced Engineered Materials 2006 Revenue (est): $0.9 B 2006 Op. EBITDA Margin (est.):~29%3 2006 Pro-forma Revenue (est.) = $6.0 Billion1,2 Acetyl Intermediates Industrial Specialties Acetate and Affiliates Performance Products Acetyl Intermediates 2006 Revenue (est): $2.9 B 2006 Op. EBITDA Margin (est.): ~23%3 Global #1 Producer4 Acetic Acid Vinyl Acetate Acetic Anhydride Other Acetyl Derivatives Ibn Sina Affiliate Methanol (to be shut down in 2007) 1Includes oxo alcohol and polyol derivative divestiture; excludes pending APL acquisition 2Does not include Other Operating Segment 3Does not include the additional proportional EBITDA from equity affiliates 4Source:Tecnon and SRI. (2005 estimates) -------------------------------------------------------------------------------- [[Image Removed]] Acetyl Intermediates - An Enviable Franchise Differentiated intermediate business Continued strong industry dynamics Celanese advantages: significant and growing -------------------------------------------------------------------------------- [[Image Removed]] Acetyl Intermediates - An Enviable Franchise Differentiated intermediate business Favorable industry structure remains Above GDP growth Continued strong industry dynamics Celanese advantages: significant and growing -------------------------------------------------------------------------------- [[Image Removed]] Celanese is a leader in an advantaged industry New Capacity Asset Location Technology Industry Structure Cost Curve Steep cost curve CE capital efficiency Overcapacity by 2008 Feedstock dependent Readily available Fragmented Top 2: ~15% of global market Relatively flat within a region Ethylene Acetyls Acetyls Acetyls Acetyls Acetyls Advantage Good outlook through at least 2009 Close to customer Top technology not licensed Attractive Top 2: >50% of global market1 Acetyls vs. Acetyls: differentiated and less cyclical versus mainstream commodities 1Source: Tecnon 2006 -------------------------------------------------------------------------------- [[Image Removed]] Favorable industry structure Global Leader GDP+ growth Top 4 suppliers own >50% of the global capacity1 VAM Celanese Nanjing BP Sopo Lyondell Eastman Daicel Other 2006 25 6 23 6 5 3 3 29 Global Leader GDP+ 1-2% growth Well structured Industry Top 2 suppliers own >50% of the global capacity1 Acetic Acid Celanese Nanjing Dairen Dow Sinopec Millennium DuPont BP Gohsei Showa Kuraray Others 2006 1570 225 650 495 440 386 336 300 200 175 150 1173 Celanese: Integrated leader in Acetyls 1Source: Tecnon 2006 -------------------------------------------------------------------------------- [[Image Removed]] 1Source: CMAI, 1996-2008 average 2Includes Acetex and Nanjing volume 3Source: Tecnon 3Q 2006 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006E 2007E 2008E VAM 100 112.3618197 106.5369898 120.2912415 116.0182823 103.4545068 116.0820578 120.8652211 132.1215986 145.3018707 159.4387755 162.627551 186.0119048 GDP 3.4 3.7 2.5 3.1 4 1.5 1.8 2.7 4 3.4 3.7 3.3 3.4 VAM 100 112.3618197 106.5369898 120.2912415 116.0182823 103.4545068 116.0820578 120.8652211 132.1215986 145.3018707 160.2891156 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006E 2007E 2008E Acetic Acid 100 107.3442623 111.7377049 112.2819672 117.252459 118.4393443 128.1967213 131.7377049 143.8557377 160.0655738 177.1803279 190.295082 207.0163934 GDP 3.4 3.7 2.5 3.1 4 1.5 1.8 2.7 4 3.4 3.7 3.3 3.4 VAM 100 112.3618197 106.5369898 120.2912415 116.0182823 103.4545068 116.0820578 120.8652211 132.1215986 145.3018707 160.2891156 Celanese VAM Indexed Growth 1996-2008E Celanese Acetic Acid Indexed Growth 1996-2008E Market growth in excess of global GDP- Celanese growth in excess of the market Global GDP1: 3.1% Celanese Acetic Acid Growth CAGR: 6.3%2 Excluding Acetex acquisition: 5.1% Market Acetic Acid Growth CAGR3: 4.6% Celanese VAM Growth CAGR: 5.3%2 Excluding Acetex acquisition: 4.4% Market VAM Growth CAGR3: 3.5% -------------------------------------------------------------------------------- [[Image Removed]] Acetyl Intermediates - An Enviable Franchise Differentiated intermediate business Continued strong industry dynamics Increased demand Supply follows demand improvements Celanese advantages: significant and growing -------------------------------------------------------------------------------- [[Image Removed]] High utilization rates continue through 2009 2004 2005 2006E 2007E 2008E 2009E Low Cost 7104 7356 7940 8608 9017 9303 1Based on effective capacity at 90% of nameplate (Celanese estimate) Source: Available Public Data Capacity Utilization1(Nov, 2006): 91% 93% 92% 91% 91% 92% Acetic Acid Supply-Demand Balance -------------------------------------------------------------------------------- [[Image Removed]] Project delays continue to allow increasing demand to absorb new supply Company Capacity Original Date CE Investor Day 2005 Comments CE Investor Day 2006 Updates Fanavaran 150KT Start 2005 Rumored to have started commissioning Commercial Production in July, 2006 Wujing 200KT Start 2005 No sign of construction Construction under way; Pending Litigation; Startup expected Mid-2007 SOPO 150KT Start 2005 Completed, explosion 3 days later Operational in 1Q 2006; expansion in July, 2006 BP/FPC 300KT Early 2005 December 2005 Commercial Production in 2Q 2006 BP/Yaraco 150KT Early 2005 Operational mid-2005 Commercial Production mid-2005 Lunan 200KT June 2005 Now commercializing Commercial Production in 1Q 2006 Daqing 200KT Late 2006 NA Expected Mid- 2007; replaces high cost capacity BP/Sinopec 500KT Start 2008 Construction not yet begun Construction not yet begun; Expected mid-2009 Sipchem 425KT Start 2008 Website states Q3 2008 Construction not yet begun; Pending Litigation; Expected mid-2009 Hualu Hengsheng 200KT 2009 Expected Late 2009 Expected Late 2009 -------------------------------------------------------------------------------- [[Image Removed]] Unmatched operating cost advantage - Nanjing widens the advantage Source: Celanese estimates, available public data 2009E 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(tm)/Leading Competition Conventional MeOH /CO High Cost Supply Pampa (under review) Celanese technology -------------------------------------------------------------------------------- [[Image Removed]] Significant PTA growth: a key factor in driving >GDP acetic acid market growth North America South America West Europe East Europe Middle East & Africa Northeast Asia South & South East Asia China 1990 2725 110 990 0 70 3240 300 555 1991 2805 110 1150 0 70 4130 355 680 1992 2910 110 1230 0 70 4440 455 780 1993 2920 110 1250 0 70 4845 455 780 1994 3245 110 1250 0 70 4950 675 780 1995 3470 110 1295 0 70 5960 950 880 1996 3540 110 1435 0 70 6700 1610 1165 1997 3895 220 1520 0 70 7950 2850 1455 1998 4535 230 1950 0 70 8810 4060 1520 1999 4625 230 2265 0 170 9150 4720 1630 2000 4660 230 2345 0 420 9250 5165 1915 2001 4695 230 2380 0 420 9552 5285 2265 2002 4695 230 2495 0 420 9930 5465 2420 2003 4865 230 2755 0 420 11010 5720 3945 2004 5195 230 2870 0 420 11245 5795 4495 2005 5195 230 2945 20 680 11650 5943 5850 2006E 5195 230 2945 200 1120 11815 7615 7020 2007E 5275 230 2945 230 1370 12135 8190 11725 2008E 5355 790 3745 230 1370 12160 8990 15030 2009E 5355 980 4495 230 1670 12160 8990 19710 2010E 5355 980 4495 230 1970 12160 8990 19710 2011 5355 980 4495 230 1970 12160 8990 20710 2012 5355 980 4495 230 1970 12160 8990 20710 Thousand Tons North America South America West Europe East Europe ME & Africa Northeast Asia China 11% CAGR through 2010 Source: Tecnon OrbiChem, 2006 PTA Capacity Growth South/Southeast Asia -------------------------------------------------------------------------------- [[Image Removed]] Strong VAM market fundamentals continue through 2009 2004 2005 2006E 2007E 2008E 2009E Effective Capacity 4883.3 5119.24 5483.02 5508.4 5691.7 5945.5 Demand 4784 4947 5115 5289 5469 5654 1Based on effective capacity at 94% of nameplate Source: Available Public Data Celanese Nanjing 300 kta Capacity Utilization1: 98% 97% 93% 96% 95% 95% Sipchem Saudi 300 kta Vinyl Acetate Supply-Demand Balance -------------------------------------------------------------------------------- [[Image Removed]] Asia ~ 450 kta Significant opportunity for incremental VAM growth in Asia Vinyl Styrene-Acrylic Straight Acrylic Urethane Alkyd US 0.46 0.08 0.26 0.04 0.16 Vinyl Styrene-Acrylic Straight Acrylic Urethane Alkyd Other Europe 0.2 0.25 0.19 0.05 0.3 0.01 US ~ 650 kta Europe ~ 750 kta Use of VAM-based architectural coatings in Asia is lagging the consumption trend in the rest of the world. Translate existing technology to the fast-growing Asian market Source: SRI Consulting, Kline Consulting Vinyl Styrene-Acrylic 100% Acrylics Urethane Alkyd Other Asia 0.11 0.44 0.21 0.1 0.12 0.01 -------------------------------------------------------------------------------- [[Image Removed]] Acetyl Intermediates - An Enviable Franchise Differentiated intermediate business Continued strong industry dynamics Celanese advantages: significant and growing Structural changes Unsurpassed technology Earnings stability Significant organic growth -------------------------------------------------------------------------------- [[Image Removed]] Acetex Acquisition Recent structural changes have further increased Acetyl business focus 2000 2006 Acrylates Divestiture Oxo Alchohol / Polyol Derivatives Divestiture Closure of Clear Lake Methanol Start-up of Singapore Acetic Acid Closure of Final Acetaldehyde Based Acetic Acid Unit Advantaged Ethylene Contract Advantaged Methanol Contract Closure of Bishop Methanol Ensure industry-leading conversion costs Improve geographic footprint Upgrade the portfolio Improve feedstock/raw material advantage Ongoing Portfolio Adjustment Themes -------------------------------------------------------------------------------- [[Image Removed]] Acetic Acid VAM Anhydride Acetate Esters Other Derivatives Methanol Ost 850 980 176 302 229 252 The result: A strong acetyl intermediate portfolio Focused on core products with world class strength: Acetic Acid, Vinyl Acetate and Downstream Derivatives Reduced product line by 49 (current = 48) with oxo alcohol and polyol derivative divestiture Integrated businesses with synergies beyond raw materials Reduced volatility of earnings - not a conventional "commodity chemicals" business Acetic Acid VAM Anhydride Acetate Esters Other Derivatives Methanol Polyols Oxo Alcohols Acrylates Ost 270 745 122 325 256 140 222 275 455 2006E Revenue = $2.9B1 2000 Revenue = $2.9B 2Methanol production ceases in 2007 2 1Includes oxo alcohol and polyol derivative divestiture Specialty Products Differentiated Intermediates -------------------------------------------------------------------------------- [[Image Removed]] Nanjing: advantaged operating costs and capital efficiency Source: External benchmarking, Celanese analysis. 1Raw material pricing based on prevailing regional costs; Celanese estimates 2 Middle East capital costs based on estimates to build similar facility in the Middle East Variable Costs Fixed Costs Freight /Duty/ Distribution CE Estimates of Acetic Acid Manufacturing Costs1 (CIF China) Indexed: China Average Costs = 100% 0 50 100 150 200 North America Middle East Nanjing Indexed: China Average Costs = 100% 0 50 100 150 200 Middle East 2 Nanjing CE Estimates of Acetic Acid Capital Costs Percent (%) Percent (%) -------------------------------------------------------------------------------- [[Image Removed]] Continued improvement to our technology position AO Plus(tm) - Acetic Acid Intellectual Property 647 patents currently in effect globally, additional 530 applications Actively protecting technology Commercial Status AO Plus implemented at the Acetex Pardies site Nanjing Acetic Acid plant on track for 2007 Vantage Plus(tm) - VAM Intellectual Property Significant operating efficiency expected 563 patents in effect globally, additional 248 applications Commercial Status Vantage Plus technology successful at Cangrejera Global implementation planned -------------------------------------------------------------------------------- [[Image Removed]] Earnings stability from structural improvements and market conditions Q104 - Q306 Basic Chemical Earnings2 Q104 - Q306 Ethylene Pricing ($US/ton)1 Q104 - Q306 Methanol Pricing ($US/ton)1 Southern Methanol contract Advantaged European methanol Significant captive product consumption Producer-type ethylene economics Ibn Sina dividends Global purchasing power Coal-based CO in Nanjing Asia Average West Europe North America 1Source: CMAI 2Indicates earnings of the businesses as reported. Not a pro forma for Acetyl Intermediates Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Earnings 108 91 148 150 226 191 201 197 208 206 234 400.00 600.00 800.00 1,000.00 1,200.00 1,400.00 1,600.00 Jan-2004 Apr-2004 Jul-2004 Oct-2004 Jan-2005 Apr-2005 Jul-2005 Oct-2005 Jan-2006 Apr-2006 Jul-2006 200 250 300 350 400 Jan-2004 Apr-2004 Jul-2004 Oct-2004 Jan-2005 Apr-2005 Jul-2005 Oct-2005 Jan-2006 Apr-2006 Jul-2006 -------------------------------------------------------------------------------- [[Image Removed]] Singapore Acid = 600 VAM = 210 AMERICAS EUROPE ASIA Acetic Acid 1,490 440 1,200 VAM 725 635 510 Frankfurt VAM = 285 Tarragona VAM = 200 Bay City VAM = 300 Clear Lake Acid = 1,200 VAM = 310 Cangrejera VAM = 115 Anhydride = 90 France Acid = 440 VAM = 150 Anhydride = 30 Under consideration Nanjing Acid = 600 VAM = 300 Anhydride = 100 New Locations Pampa Acid = 290 Anhydride = 145 All values shown in kt per year Earnings stability and growth from regional diversity -------------------------------------------------------------------------------- [[Image Removed]] M e r c h a n t S a l e s Emulsions 2H 2007 Acetic Acid (AO+(tm)) Mid-2007 Methanol Coal based CO Ethylene Vinyl Acetate (VAntage Plus(tm)) 2008 GUR 2H 2008 (potential) Acetic Anhydride 2H 2008 Acetyls Intermediates: >$500 million of incremental revenues by 2010 ~37% 100% ~90% ~10% 100% 20% ~43% 100% >$500MM incremental revenue for Acetyl Intermediates >$100MM in incremental EBITDA from the Nanjing complex -------------------------------------------------------------------------------- [[Image Removed]] Acetyl Intermediates - An Enviable Franchise Differentiated intermediate business Continued strong industry dynamics Celanese advantages: significant and growing Result: An enhanced global Acetyls leadership position driven by technology, optionality, and incremental growth Less volatile, more stable earnings with upside potential through 2009 -------------------------------------------------------------------------------- [[Image Removed]] Global Operational Excellence Integral Part of Celanese Value Proposition Jim Alder VP Operations and Technical -------------------------------------------------------------------------------- [[Image Removed]] Global Operational Excellence Operational Excellence Culture: Recent developments Nanjing Competitive Advantages: Update -------------------------------------------------------------------------------- [[Image Removed]] Strong track record of execution versus peer group 2001 2002 2003 2004 East 250 400 470 760 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 Publicly available data, excluding Special Charges and Adjustments 2005 2006 YTD 2003 2004 East 100 230 470 760 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 EBITDA Margin Improvement vs. Peers Dow Eastman ICI Added R&H FMC PPG ICI R & H FMC PPG New Peer Group Removed Solutia Rhodia Lyondell DSM Methanex Dow Eastman Solutia Rhodia Lyondell Millennium DSM Methanex Initial Peer Group EBITDA Margin vs. Initial Peer Group EBITDA Margin vs. Current Peer Group -------------------------------------------------------------------------------- [[Image Removed]] Growth and productivity are now engrained in the Celanese culture 2001 2002 2003 2004 2005 2006 2007 East West North Manufacturing Productivity Productivity Beyond Manufacturing Growth No longer just projects or initiatives Manufacturing Beyond Mfg. Six Sigma Maintenance Excellence Mfg. Digitization Energy Excellence One SAP Mfg. Work Practices Division SG&A Redesigns Shared Services Redesigns Purchasing & Pricing Finance Redesign Convergence -------------------------------------------------------------------------------- [[Image Removed]] Improving safety and environmental performance with commitment to get better 2004 2005 2006 YTD 4th Qtr East 1.06 0.74 0.46 20.4 West 0.5 0.5 31.6 North 0.49 0.19 0.1 43.9 0.1 0.1 Energy Waste Air Emissions Spills / Releases Injury Rate East 20 25 30 75 70 West North Best-in-class safety performance 2010 Goals Environmental improvements (vs. 2001) Spills and releases: - >70% Waste generation: - 32% Energy efficiency: - 26% Greenhouse gas emissions: - >30% Platform for sustainable development -------------------------------------------------------------------------------- [[Image Removed]] 2000 2001 2002 2003 2004 2005 2006 YTD 97 97.51 97.8 98.4 98.6 98.2 98.4 West 98 98 98 98 98 98 98 2000 2001 2002 2003 2004 2005 2006 YTD 2.56 2.37 1.97 1.68 1.62 1.7 1.7 West 1.5 1.45 1.4 1.4 1.4 1.4 1.45 North 45.9 46.9 45 43.9 1H 2003 2H 2003 1H 2004 2H 2004 1H 2005 2H 2005 1H 2006 92.3 86.6 83 83.7 81.2 78.5 74 West 1.5 1.45 1.4 1.4 1.4 1.4 Breadth and depth in manufacturing productivity improvement 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2006 YTD Total Headcount 12459 12156 11972 100 11394 11371 10985 86.7 9755 10024 9990 84 9391 9360 9084 76.6 8676 8552 8463 72.5 8223 7981 7743 61.6 60.9 7743 61.6 7362 7180 6980 59.79 ~ 40% reduction vs. 2000 26% usage reduction vs. 20011 best-in-class Near best-in-class1 best-in-class Sustained best-in-class1 1 Data for Chemicals and Ticona Divisions Investor Day 2005 Investor Day 2005 Investor Day 2005 Investor Day 2005 -------------------------------------------------------------------------------- [[Image Removed]] Will sustain high productivity in 2007 while meeting specific IPO commitment Track record of productivity with fixed cost reduction slightly more than inflation 2001 2002 2003 2004 2005 2006E 2007 Target Fixed cost reduction 49.2 93.7 72.6 81 116.2 77.1 78 Variable and energy improvement 8 33.6 52.9 58.6 115.7 96.8 72 75 75 75 75 75 75 Specific IPO commitment 2005 2006E 2007 Target 2004 East 0 180 335 760 West 180 155 80 31.6 North 45.9 46.9 45 43.9 Overall Company Productivity* SG&A Purchasing Acquisitions & synergies Vinamul and Acetex Methanol sourcing average fixed cost inflation * Does not include productivity from divested businesses $ millions (year-over-year cost savings) -------------------------------------------------------------------------------- [[Image Removed]] Realization of synergies enhance acquisitions Building capabilities to acquire businesses and increase value Synergies 2X initial estimates (3-5% sales) Captured 60 % in 2005 / 2006 AO+ implementation in Pardies provides most of remainder SG&A Other Manufacturing & Technical Logistics Achieved high end of 6-8% range presented at 2005 Investor Day Platform for growth through future acquisitions -------------------------------------------------------------------------------- [[Image Removed]] East 15.9 7.7 7.9 8.5 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 Platform for growth in existing assets Track record of "no / low capital" expansions 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 272 272 308 308 336 381 400 408 410 420 490 530 535 578 580 580 580 635 767 834 896 975 1035 1130 1250 1250 1250 1250 "No / low capital" expansions Other Celanese products* * Per year capacity increase for 1, 2 or 4 years between 2003 & 2006, requiring no or low capital (very small % of replacement value) East 6.3 8 7.9 8.5 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 "No / low capital" expansions Clear Lake Acetic Acid, 1979 - 2006 -------------------------------------------------------------------------------- [[Image Removed]] Acetic Acid Unit Utilities / Tank Farm Emulsions Complex Acetic Anhydride Unit GUR Unit (potential) Flare Warehouse Vinyl Acetate Monomer Unit Administration & Maintenance Nanjing: Lowest cost acetyls complex in the world Integrated complex Leading technologies Advantaged feedstock Highly capital efficient EHS excellence Integrated IP protection New announcement / confirmation since Investor Day 2005 Platform for growth in Asia -------------------------------------------------------------------------------- [[Image Removed]] Nanjing: Highly integrated complex with leading Celanese technologies M e r c h a n t S a l e s Methanol Coal based CO Ethylene Acetic Anhydride 2H 2008 ~37% 100% ~90% ~10% 100% 20% ~43% 100% Emulsions 2H 2007 Acetic Acid (AO+(tm)) Mid-2007 GUR 2H 2008 (potential) Vinyl Acetate (VAntage Plus(tm)) 2008 Projected $600 - $700 million in incremental sales by 2010 -------------------------------------------------------------------------------- [[Image Removed]] Coal gasification in China: low cost and reliable Nanjing: Advantaged feedstock position with coal-based CO Coal Gasification Low Cost Significant cost advantage > 25% advantage versus natural gas (typical alternative feedstock) Synergies from CO and methanol co-production Reliable ~50% of the 55 coal gasification units in the world are in China Redundant critical systems enhance reliability 1 From William Preston presentation at Gasification Technologies Council in 2001 Coal - water slurry 1 -------------------------------------------------------------------------------- [[Image Removed]] Leveraged technology and design improvements plus low cost in China Nanjing: Lowest capital acetyls complex in the world For comparison 600 kta 210 kta 210 kta 600 kta Acetic Acid Unit Vinyl Acetate Unit For comparison 1Actual cost escalated to 2006$ at 3% / year 2Actual cost escalated to 2007$ at 3% / year 2 1 USGC Singapore 600 kta Nanjing actual Relative capital cost % USGC Singapore 300 kta Nanjing projected Relative capital cost % -------------------------------------------------------------------------------- [[Image Removed]] Nanjing: Committed to achieving excellence in EHS Safety Integrating Celanese standards and culture No lost time injury to-date (> 3 million man-hours) Environmental US or China standards, whichever greater whichever greater whichever greater whichever greater whichever greater whichever greater whichever greater whichever greater whichever greater -------------------------------------------------------------------------------- [[Image Removed]] Nanjing: Integrated approach to protecting our IP in China Design, Engineering, & Construction Process design developed outside China Selected equipment purchase outside China Security check on key contractor personnel Operation Including Information Control Separation of jobs, limited rotation Selected critical lab analyses in Singapore Biometric access to IP sensitive areas Hiring Policy & Practices Criteria includes company specific background Employment contracts with IP language 3-5 year bonding of critical employees Litigation Track Record 100% success rate > $100 million recovery (5 lawsuits) 3 others pending litigation Biometrics Critical Equipment & Design What is IP? -------------------------------------------------------------------------------- [[Image Removed]] Global Operational Excellence is an integral part of Celanese value proposition 6-year track record vs. peers Engrained performance culture Well positioned to reach top quartile Ongoing productivity Continuing growth in existing assets Synergies to enable future acquisitions Rapid growth in Nanjing Goal to reach top quartile by 2010: Requires 120 bps annual improvement versus peer group Operating EBITDA Margin vs. Peers -2.2 -1.2 0.1 3.7 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 2004 2005 Q3 / YTD Top Quartile Dow Eastman ICI R & H FMC PPG Peer Group -------------------------------------------------------------------------------- [[Image Removed]] Building a Case for Value John J. Gallagher III Executive Vice President & Chief Financial Officer -------------------------------------------------------------------------------- [[Image Removed]] Agenda 2006 Update Oxo Alcohol/polyol derivatives divestiture Ownership and Governance Changes Full-year Guidance Case for Improved Value Creation Strong Underlying Results Value of the Affiliates Efficient use of cash Performance Relative to Peer Group -------------------------------------------------------------------------------- [[Image Removed]] Oxo-alcohol and polyol derivatives businesses divestiture Celanese Assets Celanese Assets Celanese Assets E-Oxo Joint Venture (50%-50%) with Degussa E-Oxo Joint Venture (50%-50%) with Degussa Location Oberhausen Bay City Bishop Oberhausen Marl Oxo-alcohols and Esters X X X Polyols X X Olefin Derivatives X X X Sales ($MM) ~$720 ~$720 ~$720 ~$700 ~$700 EBITDA ($MM) ~$70 (~$78 including $8MM impact from E-Oxo JV) ~$70 (~$78 including $8MM impact from E-Oxo JV) ~$70 (~$78 including $8MM impact from E-Oxo JV) ~$30 ~$30 Net Income ($MM) ~$45 (includes impact from E-Oxo JV) ~$45 (includes impact from E-Oxo JV) ~$45 (includes impact from E-Oxo JV) ~$16 (CE portion ~$8MM) ~$16 (CE portion ~$8MM) Employees 1,100 1,100 1,100 180 180 Oxo-alcohol Divestiture Details - 2006E 1Net proceeds of ~$450-475MM after charges (60% e-oxo charges, 30% taxes and pensions, 10% personnel and other costs) 2Based on exchange rate of $1.32/€ as of December 11, 2006 Estimated sale price of €480 million (~$630 million1,2) -------------------------------------------------------------------------------- [[Image Removed]] Private Equity Other East 0.15 0.85 Private Equity Other East 0.6 0.4 Broader ownership position and independent governance Average Daily Volume1 1,333,000 Value of float3 $3.1B 11 board members, 6 independent Majority independent governance Current December 12, 2005 Average Daily Volume1 385,000 Value of float2 $1.1B 11 board members, 4 independent Majority Blackstone board governance Source: SEC filings 1 90-day trailing average volume 2 Based on CE close as of December 12, 2005 3 Based on CE close as of December 8, 2006 -------------------------------------------------------------------------------- [[Image Removed]] (in $ MM) 3rd Qtr 2006 9 months ended 9/30/06 Sales $1,685 up 10% $5,000 up 11% Adjusted EPS $0.79 $2.23 Operating EBITDA1 $322 up 28% $936 up 17% Continued strength in 2006 FY 2006 Guidance Adjusted EPS guidance remains at $2.70 to $2.80/share Full-year 2006 at high end of original estimates Easing raw material costs Ticona volume growth in Europe Continued strong global demand for acetyl products Pro-forma including Oxo alcohol divestiture: $2.45 to $2.55/share YTD 2006 1Does not include ~$75MM YTD of proportional EBITDA from equity affiliates -------------------------------------------------------------------------------- [[Image Removed]] Agenda 2006 Update Oxo Alcohol/polyol derivatives divestiture Ownership and Governance Changes Full-year Guidance Case for Improved Value Creation Strong Underlying Results Value of the Affiliates Efficient use of cash Performance Relative to Peer Group -------------------------------------------------------------------------------- [[Image Removed]] Strong underlying results continue into 2007 Advanced Engineered Materials: Increase applications and volume Consumer and Industrial Specialties: Earnings growth from: Continued Acetate restructuring and APL acquisition impact Revitalization and growth for Industrial Specialties Acetyls: Strong supply-demand profile, above market growth continues Productivity: Successes continue to more than offset inflation 2000 2001 2002 2003 2004 2005 2006E 2007E Cash Flow 528 431 517 555 801 1053 1140 1225 75 Operating EBITDA 15% CAGR Adjusted EPS: $2.45 - $2.55 2006 Pro-forma Adjusted EPS: $2.60 - $2.90 Operating EBITDA: $1,140 - $1,200 million 2007 Outlook1 Pro-forma impact of oxo alcohol and polyol derivative divestiture 1Includes oxo alcohol and polyol derivative divestiture -------------------------------------------------------------------------------- [[Image Removed]] 2006E Additional Proportional EBITDA($MM) $5 $10 $40 $20 $75 $215 Affiliates continue to deliver value Equity Affiliates Affiliate Celanese Ownership Celanese Group 2006E Equity Earnings ($MM) Fortron Industries 50% AEM $15 Korean Eng. Plastics 50% AEM $15 Polyplastics 45% AEM $25 Infraserv <50% Acetyl Intermediates $10 TOTAL1 $65 Cost Affiliates Affiliate Celanese Ownership Celanese Group 2006E Cash Dividends ($MM) Ibn Sina 25% Acetyl Intermediates $55 Acetate China Affiliates 30-31% CIS $20 TOTAL $75 2006E Recognized Operating EBITDA1 = $140MM 1Includes impact from E-Oxo JV divestiture (2006 E of $10MM in reported and $20 in proportional equity earnings from E-Oxo) Total EBITDA from Affiliates -------------------------------------------------------------------------------- [[Image Removed]] Strong cash flow generation continues Operating Cash Flow ~$680 Capital Expenditures ~($280) Free Cash Flow ~$400 Operating Cash Flow ~$700 Capital Expenditures ~($250) Free Cash Flow ~$450 2006E ($MM) CAG Squeeze out: ~($80) Pending APL acquisition: ~($110) Oxo alcohol divestiture (net): ~$450-$475 Total ~$260-$285 1Includes oxo alcohol and polyol derivative divestiture and pending APL acquisition Investing Activities ($MM) 2007E1 ($MM) -------------------------------------------------------------------------------- [[Image Removed]] Efficient use of cash Invest in our business to fuel growth and increase our technology advantages Continue to look for bolt-on accretive acquisitions Evaluate capital structure opportunities De-leverage balance sheet Return to shareholders -------------------------------------------------------------------------------- [[Image Removed]] Continue to invest in growth and innovation AEM: Customer-driven new polymers and applications CIS: Market-driven innovation and enhanced customer focus Acetyl Intermediates: Product-driven innovation to expand Acetyl use Productivity: Process- driven technology improvements 2000-2004 avg. 2005 2006E 2007E Future MOB, EHS 93 98 94 89 90 95 Revenue increase / Cost reduction 119 115 156 191 110 105 Range 50 50 Revenue Increase, Cost Reduction Maintanence, EHS Depreciation and Amortization 2006 - 2007 increase driven by Nanjing complex 1 Excludes Fraport expenditures. Includes oxo alcohol and polyol derivative divestiture; does not include impact from APL acquisition Capital Expenditures Innovation Range -------------------------------------------------------------------------------- [[Image Removed]] Continue to look for bolt-on acquisitions; leverage strong integration skills Broader customer mix and reach Brings Flake integration in Europe Adds film business Increases Acetyl internal consumption 1Assumes GBP= $1.87 2Based on total revenue at the time of the acquisition Acquisition cost: $~110mm1, debt free, includes working capital 2005E revenue: ~$230mm1 EBITDA margin: high single digit - low double digit historically Financial Impact Strategic Impact Pending APL Acquisition Leverage our skills and capabilities to acquire businesses, successfully integrate and increase value Identify and capture synergies Example: Vinamul and Acetex acquisitions captured synergies totaling 8% of revenue2 -------------------------------------------------------------------------------- [[Image Removed]] Celanese reached an agreement with Frankfurt airport operator (Fraport) Fraport will compensate Celanese to relocate Ticona's Kelsterbach site Transaction subject to Fraport's AGM approval and tax neutral treatment Allows for adequate time to relocate by mid-2011 with no disruption to Ticona's business No significant implications on Celanese's debt covenants/indentures Year Amount 2006 € 20 million 2008 € 200 million 2009 € 200 million 2010 € 130 million 2011 € 100 million Total € 650 million Frankfurt Airport Settlement -------------------------------------------------------------------------------- [[Image Removed]] Senior Credit Facility Senior Subordinated Notes Discount Notes Other East 1613 964 409 463 Evaluate Capital Structure Opportunities Restricted Payments ~$360M Restricted Payments ~$520M Weighted Avg. Cost of Debt 8.2% Outstanding Shares2 158.6 MM Basic 12.0 MM Preferred 2006 Dividend Payment $0.16 / share 1 Debt and equity information based on 3Q 2006 actuals 2 Does not include option grants Equity1 Debt1 2006 Total Debt - $3,449 MM $MM Permitted Acquisitions $500M Restricted Payments ~$65M -------------------------------------------------------------------------------- [[Image Removed]] Consistent performance with peer group; valuation still trails Global Presence % sales in Asia 2005 ROTC1 2007E P/E Multiple2 Rohm and Haas 15% 12% 14.7 PPG 15% 15% 12.7 ICI 24% 10% 14.2 Average Average Average Average 13.9 Celanese 25% 16% 8.5 FMC 13% 13% 11.5 Dow 11% 19% 9.8 Eastman 13% 17% 13.2 Average 11.5 Peer Comparison Limited Significant Source: Company 10K's, Celanese analysis 1Source Value Line: Return on Total Capital ((Net Income + 1/2 long-term interest)/ (shareholder equity plus total debt)) 22007 EPS estimates per Thompson financial. Stock price as of December 8, 2006. Top Quartile -------------------------------------------------------------------------------- [[Image Removed]] P/E Top Half Peer Group P/E Bottom Half Peer Group Celanese Competitive Average 14 11.6 Celanese 7.3 Valuing Celanese Stock Price based on Celanese 2007 EPS $2.60 - 2.90 Majority independent board of directors Strong operating performance continues Strategic value of affiliates Efficient use of shareholder cash to drive incremental value P/E Multiple (based on 2007E P/E)1 1Source: Thompson Financial 2 As of December 8, 2006 $30-33 $36 - 40 Significant shareholder value upside exists for Celanese Current Share price: $22.992 -------------------------------------------------------------------------------- [[Image Removed]] Appendix -------------------------------------------------------------------------------- [[Image Removed]] 2007 Guidance 2006 Pro forma Adjusted EPS $2.45 to $2.55 Adjusted EPS $2.60 to $2.90 Operating EBITDA $1,140 to $1,200 million Cash Taxes $180 - 200 million Capital Expenditure / Depreciation and Amortization Approximately $280 million Net cash interest expense $170-$190 million Estimated Tax Rate for Adjusted EPS of 28% -------------------------------------------------------------------------------- [[Image Removed]] Reg G: Reconciliation of Diluted Adjusted EPS 19 -------------------------------------------------------------------------------- [[Image Removed]] Reg G: Reconciliation of Net Debt 20 -------------------------------------------------------------------------------- [[Image Removed]] Reg G: Reconciliation of Other Charges and Other Adjustments 21 -------------------------------------------------------------------------------- [[Image Removed]] Reg G: Reconciliation of Operating EBITDA 22 -------------------------------------------------------------------------------- [[Image Removed]] Reg G: Reconciliation of 2000 to 2005 Operating EBITDA -------------------------------------------------------------------------------- [[Image Removed]] Peer comparison ranking Global Positioning 35-40% Exposure to one region Equal Exposure to the main regions Greater than 60% exposure to one region >50-60% exposure to one region >40-50% exposure to one region