2. Forward looking statements;
Reconciliation and use of non-GAAP
measures to U.S. GAAP
This presentation may contain “forward-looking statements,” which include information concerning the company’s plans, objectives, goals, strategies,
future revenues or performance, capital expenditures, financing needs and other information that is not historical information. When used in this
presentation, the words “outlook,” “forecast,” “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” and variations of such words
or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon current expectations and
beliefs and various assumptions. There can be no assurance that the company will realize these expectations or that these beliefs will prove correct.
There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements contained in this
release. Numerous factors, many of which are beyond the company’s control, could cause actual results to differ materially from those expressed as
forward-looking statements. Certain of these risk factors are discussed in the company’s filings with the Securities and Exchange Commission. Any
forward-looking statement speaks only as of the date on which it is made, and the company undertakes no obligation to update any forward-looking
statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or
circumstances.
This presentation reflects two performance measures, operating EBITDA and adjusted earnings per share, 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 and for adjusted earnings per share is earnings per common share-diluted.
►Operating EBITDA, a measure used by management to measure performance, is defined as operating profit from continuing operations, plus equity
in net earnings from affiliates, other income and depreciation and amortization, and further adjusted for other charges and adjustments. We provide
guidance on operating EBITDA and are unable to reconcile forecasted operating EBITDA to a GAAP financial measure because a forecast of other
charges and other adjustments is not practical. Our management believes operating EBITDA is useful to investors because it is one of the primary
measures our management uses for its planning and budgeting processes and to monitor and evaluate financial and operating results. Operating
EBITDA is not a recognized term under U.S. GAAP and does not purport to be an alternative to operating profit as a measure of operating performance
or to cash flow from operations as a measure of liquidity. Because not all companies use identical calculations, this presentation of operating EBITDA
may not be comparable to other similarly titled measures of other companies. Additionally, operating EBITDA is not intended to be a measure of free
cash flow for management’s discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt
service requirements nor does it represent the amount used in our debt covenants.
earnings per share is a measure used by management to measure performance. It is defined as net earnings (loss) available to common
►Adjusted
shareholders plus preferred dividends, adjusted for other charges and adjustments, and divided by the number of basic common shares, diluted
preferred shares, and options valued using the treasury method. We provide guidance on an adjusted earnings per share basis and are unable to
reconcile forecasted adjusted earnings per share to a GAAP financial measure because a forecast of other charges and other adjustments is not
practical. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding
various financial and business trends relating to our financial condition and results of operations, and that when U.S. GAAP information is viewed in
conjunction with non-U.S. GAAP information, investors are provided with a more meaningful understanding of our ongoing operating performance.
This non-U.S. GAAP information is not intended to be considered in isolation or as a substitute for U.S. GAAP financial information.
2
3. Who is Celanese?
Superior Value Creation
Strategy
Industry Leader
Clear focus on growth and ►
value creation
Geographically balanced
●
global positions
Culture Diversified end market
Leading Global ●
Strong performance exposure
Integrated Producer
built on shared of Chemicals and
Strong Cash Generation
►
principles and
Advanced Materials
objectives
Significant Growth
►
Capability
Execution Track record of execution
●
Demonstrated track record
Clearly defined
●
of delivering results
opportunities
3
4. A leading global integrated producer
Celanese
($ in millions)
2007 Revenue1,2: $6,444
2007 Operating EBITDA2: $1,325
Advanced Engineered Consumer and Industrial
Acetyl Intermediates
Materials Specialties
2007 Revenue1:
2007 Revenue: $1,030 2007 Revenue: $2,457 $2,955
2007 Operating EBITDA: $252 2007 Operating EBITDA: $393 2007 Operating EBITDA: $762
Leading global producer Leading global producer Leading global integrated
► ► ►
of engineered polymers of cellulose acetate producer of acetyl products
products
Strategic affiliates in Asia Significant presence in all
► ►
Leading global producer three major regions
►
of vinyl emulsion
products
1Represents Net Sales
2Total 2007Revenue and Operating EBITDA includes Other Activities of $2 and ($82), respectively
4
5. Geographically balanced global
positions and diversified end market
exposure
Paints &
Coatings Textiles
Food & Beverage
15% 6%
5%
Automotive
Consumer &
Industrial 9%
29% 43% 28%
Adhesives
4%
Consumer &
Medical
Construction Applications
7% 11%
Chemical
Performance
Additives
Industrial Applications
5% 4%
Filter Media
Paper &
Packaging 16% Other
8% 10%
Geographic breakdown based on 2007 Net Sales (by destination)
5
End market breakdown based on 2007 estimated Gross Sales
6. Integrated businesses aligned to
accelerate growth
Differentiated Intermediates Specialty Products
Building Block
Acetate
Consumer
Specialties
Anhydride
(CS)
Nutrinova
and esters
Acetic
Acid
Emulsions
Industrial
Raw VAM PVOH Specialties
Materials
(IS)
AT Plastics
Formaldehyde
Ticona
Advanced
Engineering
Acetyl Intermediates Engineered
Polymers
(AI) Materials
(AEM)
Affiliates
6
7. Since 2000, Celanese has executed
against a simple strategic foundation
FOCUS
Participate in
businesses where we have
a sustainable competitive
advantage
Celanese INVESTMENT
REDEPLOYMENT
Divest non-core assets and Leverage and build on
Strategic
revitalize underperforming advantaged positions that
Pillars
businesses optimize our portfolio
GROWTH
Aggressively
align with our customers
and their markets to
capture growth
7
8. Today’s portfolio: more resilient and
less volatile
Operating EBITDA Margin
Current portfolio provides overall
►
25%
higher level of earnings
21%
20%
Historic view with today’s
►
19% 19%
20%
portfolio reflects significantly less
17% 19%
volatility
16%
15% 15% 17%
Current portfolio range: 15% - 21%
15%
16%
Historic portfolio range: 10% - 20%
One-third of portfolio is new to
►
10% 11% 11% 11%
the company since 2000
10%
Growth objectives will continue
►
5%
to bolster portfolio
2000 2001 2002 2003 2004 2005 2006 2007
As Reported Pro Forma for Current Portfolio
8
9. Committed to delivering value creation
Primary Growth Focus
Balance Operational EBITDA
Group Asia Revitalization Innovation Organic
Sheet Excellence Impact
Consumer and
EPS Operating EBITDA
Industrial X X X X >$100MM
Specialties
Advanced
Engineered X X X X >$100MM
Materials
Acetyl
X X X >$100MM
Intermediates
Celanese Incremental
X X
Corporate EPS
$350 – $400 million increased EBITDA profile
plus EPS potential by 2010
9
10. On track and clear path forward to
accelerate 2010 Growth Objectives
Operating EBITDA Growth Objectives
Advanced Engineered Materials
400
AEM: volume growth > 2X GDP
Consumer and Industrial Specialties ►
Acetyl Intermediates
through further penetration
CIS: Acetate continues
►
$ in millions
execution on revitalization
200
strategy; Emulsions/PVOH
revitalization commences
AI: Nanjing acetic acid plant
►
startup leads integrated complex
0
2007 2008 2009 2010
10
11. Strong cash flow generation continues
Adjusted Free Cash Flow1
Strong operating results
►
500 - 550
456
Lower cash taxes
385
►
$ in millions
Working capital
►
productivity
2008 estimate excludes
►
Kelsterbach relocation
2006 2007 2008E
Decrease in overall
►
Operating EBITDA/Net Interest
borrowing costs since
7x
8.0% Borrowing Rate
2005
6.5x
6x
6.1x
Continued improvement in
5x
►
4.5x
4x
interest coverage ratio
3.9x
3x
Improved capital flexibility
►
2x
6.9%
1x
0x
2005 2006 2007 2008E
1 Adjustedfree cash flow calculated as cash flow from operations less capital expenditures less other productive asset purchases less operating
11
cash from discontinued operations plus certain other charges
12. Asia strategy: high-return growth
Celanese Nanjing Integrated Complex Investment Dynamics
GUR® Celstran® Total investment: $300 -
►
Warehouse Flare
Unit Unit $350 million – over 80%
complete
Acetic Anhydride Vinyl Acetate
Total revenue: $600 - $800
►
Unit Monomer Unit
million when sold out by
2010
Incremental EBITDA: $120 -
►
Acetic Acid
Utilities /
$150 million by 2010
Unit
Tank Farm
Emulsions
Complex
Administration &
ROIC = 25 – 30%
Compounding
Maintenance
12
13. AEM: value of technology and
performance is realized in price
$100 / kg Price for Performance
$10 / kg
$3 / kg
$100/kg
High-Performance Polymers (HPP)
5%
$10/kg
Engineering Thermoplastics (ETP)
$3/kg
others = 2%
Performance
Price Range
Ranges
PU = 6%
95% Standard Polymers
$1/ kg PET = 7%
ABS, SAN, ASA: 3%
PS, EPS = 8%
PVC = 17%
PE = 31% PP = 21%
$1/kg
Range of Products
13
14. AEM: broad range of end-use
applications to targeted niches
Revenue by End-Use 2007 ~ $1 billion
Medical 6% Transportation 45%
Other 3%
● Fuel systems
● Drug delivery systems
● Safety systems
● Medical implants
● Mechanical components
Alternate Fabrication
11%
Electrical &
Electronics 11%
Consumer & Appliance
Industrial 14%
10%
● Emissions filtration
● Textiles ● Communication systems
● LED lighting
● Connectors
● Water purification
● Fluid handling ● Durable household goods
● Gearing ● Bakeware
14
15. AEM: significant opportunity for
increased penetration in high growth
region
Advanced Engineered Materials
Global Auto Production
Type of Resins
China
Japan
6
2001
U.S.
Germany
13
2007E
India
S. Korea
2010E 18
China production
France
nearly doubles Highest
Brazil
within 5 years 40
Current
Spain Model
Canada 2006 Production China
2.5 Trend
Current
Production Growth 2006-2012
Mexico
0 3,000 6,000 9,000 12,000 15,000
Pounds per Vehicle
Vehicle Production (thousand units)
Source: Global Insight Source: Celanese estimates
15
16. CS: successful revitalization and
continued execution of current strategy
CS Operating EBITDA 2004 – 2010E Acetate Products
►
revitalization
Growth Objective
completed in 2007
350
Full synergy capture of
►
300
APL acquisition by
Asian Growth1
2008
250
Nutrinova to offset
European Initiative
►
$ in millions
price declines with
200
volume increases
North America/Europe Revitalization
150
Modest growth beyond
►
2008:
100 Acetate Base Operating EBITDA
Growth in Asia
50
continues at 2-3%
Nutrinova Operating EBITDA
per year
0
Sustainable Operating
2004 2005 2006 2007 2008E 2009E 2010E
EBITDA
1Dividends from cost investments
16
17. IS: technology enhancements open
$1.0 billion of new opportunities
Global Vinyl Emulsions Applications Driving 2010 Growth
2010E
Growth
4.0
Applications Application
>25% Rate
Sales ($MM)
~30%
3.0
$ in billions
~25% Low VOC and nano
$400 – $500 10+%
increase in paints
2.0
vinyl space
Engineered
$200 – $300 3% - 5%
fabrics/glass fiber
1.0
Enviro-friendly
$100 – $200 8%
adhesives
0.0
2006 2010E China building/
$100 – $200 30+%
construction
Others
Celanese
$1.0 billion expansion = >$250 million in revenue
17
18. IS: current regulatory trends in U.S.
create new opportunities for VAE
VOC Regulatory Trends for
European Interior Paint European VAE Success Flat to Semi-Gloss Paints
Industry Development
50%
VAE Share of Interior
1999
US VOC grams/liter
EU VOC parts/liter
VOC (g/L): 250 – 380
Paints
VOC Content 2004
VOC (g/L): 100 – 150
0%
European
1996 2006 2010E
Standard
Celanese Others
1990 2006
1999 2008
Current trends in U.S. following European precedent
►
► In 2008, Southern California will further restrict emission requirements in paints
► Today, less than 25% of the interior paints meet the contemplated guidelines
$100 - $2001 per ton estimated cost for non-VAE emulsions to achieve standard
► U.S. interior paint opportunity ~$1.0 billion
VAE provides favorable substitution for low-VOC requirements
1Based on Celanese estimates
18
19. AI: advantaged operating costs and
favorable supply/demand continues
through 2010
2010E Acetic Acid Cost Curve (kt)
Acetic Acid Supply/Demand Balance
(based on nameplate capacity)
High Cost
12,000
Ethylene Low Cost
High Cost Supply
Demand
Ethanol 10,000
8,000
Celanese
Conventional
Technology
kt
6,000
MeOH/CO
AOPlus™/Leading 4,000
Competition
2,000
By-
prod
0
2004 2005 2006 2007E 2008E 2009E 2010E
Utilization of
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Effective
Capacity1(11/07 ): 91% 93% 92% 94% 93% 91% 91%
12008E-2010E effective utilization based on external analysis assumptions
Source: Celanese estimates, available public data
19
20. AI: continued earnings stability
► Southern
Increasing Ethylene Costs ($US/ton)1
Chemical
1,500
contract
Stable Acetyl Intermediates Operating
1,400
EBITDA Margin
1,300 ► Advantaged
1,200
European
1,100
methanol
Operating EBITDA as a % of Revenues
1,000
30%
900 ► Producer-type
800
ethylene
700
economics
600
20%
Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007E
► Significant
captive
Volatile Methanol Prices ($US/ton)1
product
10%
800 consumption
700
► Ibn Sina
600
dividends
0%
500
► Select Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
400
05 05 05 05 06 06 06 06 07 07 07 07
formula-based
300
pricing Operating EBITDA as a % of Revenues
200
Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007E
Rolling Four-quarter Average
► Coal-based
North America
West Europe Asia Average
CO in Nanjing
1Source: CMAI
20
21. Recent initiatives to support growth
beyond 2010
Recent Actions
Direct to China
►
Announced plans to add polymer compounding
unit to the Nanjing Complex
Advanced
Commissioned start-up of Nanjing Celstran® unit
Engineered
Materials Kelsterbach relocation
►
Announced 40% capacity expansion at new
European POM facility
Signed an agreement with Wison to double
►
Nanjing CO supply increasing reliability and
supporting future expansion
Acetyl
Announced agreement with SWRI, a leading
Intermediates ►
Chinese technology institute, to acquire
technology licensing rights and development
capabilities
Recently announced authorization for $400 million share repurchase
21
23. Delays continue to be common for
acetyl projects
Company Capacity 2005 2006 2007 2008 2009 2010
300kt
BP/FPC SU
A X
150kt
BP / Yaraco A X SU
200kt
Wujing A X X SU
150kt
Sopo A X SU
150kt
Fanavaran A X SU
200kt
Lunan Cathay X SU
A
500kt Cancelled
Acetex (Tasnee) A
600kt
Celanese Nanjing (Phase 1) X SU
A X
550kt
BP / Sinopec A X X X
425kt
Sipchem A X X X
200kt
Daqing A X SU
200kt
Hualu Hensheng X
A
350kt
Lunan Cathay (expansion) A X
600kt
Sopo (expansion) A X
200kt
Tianjin Bohei A X
Company announced startup CE 2005 update CE 2006 update CE 2007 update
A
X = Project delay SU = Actual plant startup
23
24. 2008 business outlook
(updated on February 5, 2008)
Volume growth >2x GDP across both transportation
►
and non-transportation applications
Advanced
► Continued high energy and raw material costs
Engineered
expected to pressure margins
2008 Guidance:
Materials
► Significant progress expected in Nanjing
production capabilities Adjusted EPS
$3.40 to $3.70
Synergy capture from APL integration
►
Consumer
► Strong underlying business fundamentals
Specialties
Operating EBITDA
High raw material costs continue
►
Industrial $1,290 to $1,360 million
► Realize benefits from revitalization efforts
Specialties
Forecasted 2008
Continued strong global demand
►
adjusted tax rate of
► Incremental acetic acid volume
26%
associated with China expansion
Acetyl
► VAM and acetic anhydride production scheduled to
Intermediates
begin in Nanjing
► Prices expected to adjust in 2008
24
26. Advanced Engineered Materials
4th Qtr 4th Qtr FY FY
in millions 2007 2006 2007 2006
Net Sales $224 $915
$253 $1,030
Operating EBITDA $58 $260
$45 $252
Fourth Quarter 2007:
► Net sales increase driven primarily by strong volume growth (8%) and
positive currency effects (6%)
► Higher raw material and energy costs and lower pricing due to
product mix more than offset volume growth
► Overall lower earnings from equity affiliates and continued high input
cost pressures drove decreased Operating EBITDA
26
27. Consumer Specialties
4th Qtr 4th Qtr FY FY
in millions 2007 2006 2007 2006
Net Sales $224 $876
$279 $1,111
Operating EBITDA $53 $228
$57 $274
Fourth Quarter 2007:
► Increase in net sales for the quarter primarily the result of $62 million
contribution from APL
► Operating EBITDA improvement driven by higher overall volumes
and pricing as well as incremental earnings from APL
27
28. Industrial Specialties
4th Qtr 4th Qtr FY FY
in millions 2007 2006 2007 2006
Net Sales $309 $1,281
$331 $1,346
Operating EBITDA $25 $118
$41 $119
Fourth Quarter 2007:
► Increase in net sales primarily driven by favorable pricing and
currency effects
► Higher pricing on strong demand offset raw material cost pressures
contributing to improved Operating EBITDA for the quarter
28
29. Acetyl Intermediates
4th Qtr 4th Qtr FY FY
in millions 2007 2006 2007 2006
Net Sales $831 $3,615 $3,351
$1,083
Operating EBITDA $169 $672
$231 $762
Fourth Quarter 2007:
► Higher pricing, additional volumes from Nanjing unit and
favorable currency effects drove record sales
► Favorable supply/demand economics, industry production
outages and strong demand sustained higher pricing for acetic
acid and VAM
► Operating EBITDA includes increased dividends from the Ibn
Sina cost affiliate
29
30. Reg G: Reconciliation of Adjusted EPS
Adjusted Earnings Per Share - Reconciliation of a Non-U.S. GAAP Measure
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
(in $ millions, except per share data)
Earnings from continuing operations
125 526
before tax and minority interests 313 447
Non-GAAP Adjustments:
1
Other charges and other adjustments 15 92
(93) 113
- -
Refinancing costs - 254
Adjusted earnings from continuing operations
140 618
before tax and minority interests 220 814
2
Income tax provision on adjusted earnings (35) (163)
(62) (228)
(1)
Minority interests (4)
(1) (1)
Adjusted earnings from continuing operations 157 104 585 451
Preferred dividends (2) (10)
(3) (10)
Adjusted net earnings available to common shareholders 154 102 575 441
Add back: Preferred dividends 2 10
3 10
Adjusted net earnings for adjusted EPS 157 104 585 451
Diluted shares (millions)
Weighted average shares outstanding 158.7 158.6
151.7 154.5
12.0
Assumed conversion of Preferred Shares 12.0 12.0
12.0
-
Assumed conversion of Restricted Stock - 0.4
0.6
1.8 1.2
Assumed conversion of stock options 4.3
4.3
Total diluted shares 172.5 171.8
168.6 171.2
Adjusted EPS 0.93 0.61 3.42 2.62
1
See Table 7 for details
2
The adjusted tax rate for the three and twelve months ended December 31, 2007 is 28% based on the original full year 2007 guidance.
30
31. Reg G: Other Charges and Other
Adjustments
Other Charges and Other Adjustments
Other Charges:
Three Months Ended Twelve Months Ended
December 31, December 31,
(in $ millions) 2007 2006 2007 2006
Employee termination benefits 1 12
5 32
(1)
Plant/office closures (1) 11
7
Insurance recoveries associated with plumbing cases (2) (5)
(2) (4)
Insurance recoveries associated with Clear Lake, Texas - -
(40) (40)
Resolution of commercial disputes with a vendor - -
(31) (31)
Deferred compensation triggered by Exit Event - -
- 74
Asset impairments - -
- 9
Ticona Kelsterbach plant relocation - -
1 5
-
Other 4
- 2
Total (60) (2) 58 10
Other Adjustments: 1
Three Months Ended Twelve Months Ended
December 31, December 31,
(in $ millions) 2007 2006 2007 2006
Executive severance & other costs related
to Squeeze-Out 2 30
- -
Ethylene pipeline exit costs - -
- 10
Business optimization 8 12
8 18
Foreign exchange loss related to refinancing transaction - -
- 22
Loss on AT Plastics films sale - -
- 7
2
Discontinued methanol production 16 52
- 31
Gain on disposal of investment (Pemeas) (11) (11)
- -
Gain on Edmonton sale - -
(34) (34)
Other 2 (1)
(7) 1
(33) 17 55 82
Total
(93) 15 113 92
Total other charges and other adjustments
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.
31
32. 32
Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA -
a Non-U.S. GAAP Measure
Three Months Ended Twelve Months Ended
December 31, December 31,
(in $ millions) 2007 2006 2007 2006
Net Sales
253 1,030
Advanced Engineered Materials 224 915
279 1,111
Consumer Specialties 224 876
EBITDA
331 1,346
Industrial Specialties 309 1,281
1,083 3,615
Acetyl Intermediates 831 3,351
1
Other Activities - 2
6 22
(186) (660)
Intersegment eliminations (164) (667)
Total 1,760 1,430 6,444 5,778
Operating Profit (Loss)
30 133
Advanced Engineered Materials 29 145
69 199
Consumer Specialties 41 165
26 28
Industrial Specialties 9 44
276 616
Acetyl Intermediates 107 456
1
Other Activities (77) (228)
(46) (190)
Total 324 140 748 620
Equity Earnings and Other Income/(Expense) 2
7 55
Advanced Engineered Materials 13 55
3 40
Consumer Specialties 2 24
- -
Industrial Specialties - (1)
27 78
Acetyl Intermediates 23 63
1
Other Activities 8 -
12 22
Total 45 50 173 163
Other Charges and Other Adjustments 3
(10) (5)
Advanced Engineered Materials (1) (5)
(27) (16)
Consumer Specialties - -
(1) 32
Industrial Specialties 2 16
(97) (38)
Acetyl Intermediates 16 52
1
Other Activities 42 140
(2) 29
Total (93) 15 113 92
Depreciation and Amortization Expense
18 69
Advanced Engineered Materials 17 65
12 51
Consumer Specialties 10 39
Reg G: Reconciliation of Operating
16 59
Industrial Specialties 14 59
25 106
Acetyl Intermediates 23 101
1
Other Activities - 5
6
2
Total 73 64 291 269
Operating EBITDA
45 252
Advanced Engineered Materials 58 260
57 274
Consumer Specialties 53 228
41 119
Industrial Specialties 25 118
231 762
Acetyl Intermediates 169 672
1
Other Activities (25) (82)
(36) (134)
Total 349 269 1,325 1,144
1
Other Activities primarily includes corporate selling, general and administrative expenses and the results from captive insurance companies.
The 2007 Operating Profit (Loss) and Other Charges and Other Adjustments amounts include deductible associated with insurance recovery.
2
Includes equity earnings from affiliates, dividends from cost investments and other income/(expense).
3
Excludes adjustments to minority interest, net interest, taxes, depreciation, amortization and discontinued operations (See Table 7).
33. 33
Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA -
a Non-U.S. GAAP Measure.
Three Months Ended Nine Months Ended
September 30, September 30,
(in $ millions) 2007 2006 2007 2006
Net Sales
258 777
Advanced Engineered Materials 230 691
282 832
Consumer Specialties 213 652
314 1,015
Industrial Specialties 335 972
EBITDA
859 2,532
Acetyl Intermediates 872 2,520
1
Other Activities 6 2
5 16
(146) (474)
Intersegment eliminations (184) (503)
Total 1,573 1,471 4,684 4,348
Operating Profit (Loss)
35 103
Advanced Engineered Materials 37 116
34 130
Consumer Specialties 35 124
(9) 2
Industrial Specialties 17 35
117 340
Acetyl Intermediates 126 349
1
Other Activities (30) (151)
(43) (144)
Total 147 172 424 480
Equity Earnings and Other Income/(Expense) 2
18 48
Advanced Engineered Materials 14 42
2 37
Consumer Specialties - 22
- -
Industrial Specialties - (1)
28 51
Acetyl Intermediates 18 40
1
Other Activities (10) (8)
10 10
Total 38 42 128 113
Other Charges and Other Adjustments 3
- 5
Advanced Engineered Materials - (4)
2 11
Consumer Specialties - -
14 33
Industrial Specialties 3 14
2 59
Acetyl Intermediates 10 36
1
Other Activities 22 98
3 31
Total 40 16 206 77
Depreciation and Amortization Expense
17 51
Advanced Engineered Materials 16 48
Reg G: Reconciliation of Operating
15 39
Consumer Specialties 9 29
13 43
Industrial Specialties 16 45
31 81
Acetyl Intermediates 23 78
1
Other Activities 2 5
4
1
Total 77 66 218 205
Operating EBITDA
70 207
Advanced Engineered Materials 67 202
53 217
Consumer Specialties 44 175
18 78
Industrial Specialties 36 93
178 531
Acetyl Intermediates 177 503
1
Other Activities (17) (57)
(28) (98)
Total 302 296 976 875
1
Other Activities primarily includes corporate selling, general and administrative expenses
and the results from captive insurance companies.
2
Includes equity earnings from affiliates, dividends from cost investments and other income/(expense)
3
Excludes adjustments to minority interest, net interest, taxes, depreciation, amortization and discontinued operations.
34. 34
Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA - a Non-U.S. GAAP Measure - Unaudited
Three Months Ended Twelve Months Ended
March 31, June 30, September 30, December 31, December 31,
(in $ millions) 2005 2005 2005 2005 2005
Net Sales
239 223 212 213 887
Advanced Engineered Materials
212 219 208 200 839
Consumer Specialties
206 263 305 286 1,060
Industrial Specialties
EBITDA
690 707 731 783 2,911
Acetyl Intermediates
1
Other Activities 12 8 6 6 32
(95) (99) (113) (153) (460)
Intersegment eliminations
Total 1,264 1,321 1,349 1,335 5,269
Operating Profit (Loss)
39 5 18 (2) 60
Advanced Engineered Materials
24 27 21 56 128
Consumer Specialties
- 5 5 (14) (4)
Industrial Specialties
143 121 76 146 486
Acetyl Intermediates
1
Other Activities (83) (33) (38) (30) (184)
Total 123 125 82 156 486
Equity Earnings and Other Income/(Expense) 2
12 16 15 11 54
Advanced Engineered Materials
- 2 (2) 3 3
Consumer Specialties
- - - - -
Industrial Specialties
12 (10) 32 35 69
Acetyl Intermediates
1
Other Activities (8) 18 (2) 5 13
Total 16 26 43 54 139
Other Charges and Other Adjustments 3
1 20 4 6 31
Advanced Engineered Materials
1 - 10 (24) (13)
Consumer Specialties
- 2 8 1 11
Industrial Specialties
19 11 15 (30) 15
Acetyl Intermediates
1
Other Activities 45 (10) 2 3 40
Total 66 23 39 (44) 84
Depreciation and Amortization Expense
15 14 13 18 60
Advanced Engineered Materials
12 12 7 11 42
Consumer Specialties
12 11 7 17 47
Industrial Specialties
17 24 35 34 110
Acetyl Intermediates
1
Other Activities
Reg G: Reconciliation of Operating
2 2 4 1 9
Total 58 63 66 81 268
Operating EBITDA*
67 55 50 33 205
Advanced Engineered Materials
37 41 36 46 160
Consumer Specialties
12 18 20 4 54
Industrial Specialties
191 146 158 185 680
Acetyl Intermediates
1
Other Activities (44) (23) (34) (21) (122)
Total 263 237 230 247 977
*Quarterly earnings for the discontinued Edmonton Methanol 18 10 4 3 35
operations have been included in Other Charges and Other Adjustments.
Oxo Alcohol Divestiture 22 28 22 9 81
Total Operating EBITDA - as reported 285 265 252 256 1,058
1
Other Activities primarily includes corporate selling, general and administrative expenses and the results from captive insurance companies.
2
Includes equity earnings from affiliates, dividends from cost investments and other income/(expense).
3
Excludes adjustments to minority interest, net interest, taxes, depreciation, amortization and discontinued operations.
