White Paper Celanese Equity and Cost Investments

Transcription

1 White Paper Celanese Equity and Cost Investments August 2010

2 TABLE OF CONTENTS 2 Table of Contents Disclaimers... 3 Overview and Value Proposition... 5 Affiliate Overview Key Financial Data Accounting for Equity and Cost Investments... 21

3 DISCLAIMERS 3 Disclaimers Celanese Corporation (the company ) is providing the.financial information contained herein for informational purposes only. Certain.financial information appearing in this White Paper has not been audited and is identified as such. Such unaudited.financial information is based on internal.financial data furnished to management and should not be taken as representative of the company s future consolidated results of operations or.financial position. Such unaudited financial information should be considered in combination with our audited.financial statements. While the company believes that the.financial information disclosed herein is accurate as of the dates presented, the company in no way guarantees that such information is complete or accurate, does not assume any obligation to update or correct such information and explicitly disclaims any duty to do so. Quarterly results should not be taken as an indication of the results of operations to be reported for any subsequent period or for the full fiscal year. Forward-Looking Statements This White Paper 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 White Paper, 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 results expressed or implied in the forward-looking statements contained in this release. These risks and uncertainties include, among other things: changes in general economic, business, political and regulatory conditions in the countries or regions in which we operate; the length and depth of business cycles, particularly in the automotive, electrical, electronics and construction industries; changes in the price and availability of raw materials; the ability to pass increases in raw material prices on to customers or otherwise improve margins through price increases; the ability to maintain plant utilization rates and to implement planned capacity additions and expansions; the ability to improve productivity by implementing technological improvements to existing plants; increased price competition and the introduction of competing products by other companies; changes in the degree of intellectual property and other legal protection afforded to our products; compliance costs and potential disruption of production due to accidents or other unforeseen events or delays in construction of facilities; potential liability for remedial actions and increased costs under existing or future environmental regulations, including those relates to climate change; potential liability resulting from pending or future litigation, or from changes in the laws, regulations or policies of governments or other governmental activities in the countries in which we operate; changes in currency exchange rates and interest rates; and various other factors discussed from time to time 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.

4 DISCLAIMERS 4 Reconciliation of Non-U.S. GAAP Measures to U.S. GAAP This White Paper reflects the following performance measures, operating EBITDA, business operating EBITDA, proportional affiliate EBITDA, and net debt as non-u.s. GAAP measures. These measurements are not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP measures of performance. The most directly comparable financial measure presented in accordance with U.S. GAAP in our consolidated financial statements for operating EBITDA and business operating EBITDA is operating profit; for proportional affiliate EBITDA is equity in net earnings of affiliates; 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 by the company as operating profit from continuing operations, plus equity in net earnings from affiliates, cost dividend income, other income and depreciation and amortization, and further adjusted for other charges and adjustments. We may provide guidance on operating EBITDA and are unable to reconcile forecasted operating EBITDA to a U.S. GAAP financial measure because a forecast of Other Charges and 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...business operating EBITDA, a measure used by management to measure performance of its internal operations, is defined by the company as operating profit from continuing operations, plus depreciation and amortization, and further adjusted for other charges and adjustments. This reflects the operating results of the company s operations without regard to its equity and cost investments. The company believes that investors should consider business operating EBITDA when evaluating the company s internal operations...proportional affiliate EBITDA, a measure used by management to measure performance of its equity investments, is defined by the company as the proportional operating profit plus the proportional depreciation and amortization of its equity investments. The company has determined that it does not have sufficient ownership for operating control of these investments to consider their results on a consolidated basis. The company believes that investors should consider proportional affiliate EBITDA as an additional measure of operating results....net debt is defined by the company 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. Proportional net debt is defined as our proportionate share of our affiliates net debt..

5 Overview and Value Proposition

6 Overview AND Value Proposition 6 Overview and Value Proposition Equity and cost investments represent an important component of Celanese s strategy for accelerated growth and expansion of its global reach. These investments have provided the company s core busi.nesses with a large presence in Asia and the Middle East, and have also contributed significantly to earnings and cash.flow. Many of these investments are long-standing ventures, one of which dates back as far as the 1960.s. The ventures have sizeable operations and are leading companies in their industries. Celanese has historically played a key strategic role in the operations of the ventures, contributing technology and leadership to many. In , the ventures contributed $156 million in earnings to the company and the company received a total of $135 million in cash dividends. Total sales for the equity investments in were $3.9 billion, of which about $1.4 billion was Celanese s pro rata share based on ownership percentage. Net earnings for equity investments in were $30.9 million, of which Celanese s pro rata share was $80..million. Equity and cost investments create value for the company in four unique ways: They have a history of strong, sustainable financial performance They are in the growth geographies of the world They have a proven track record of delivering growth They create the knowledge and capability to allow for future direct investments Strong Operating Performance Strong operating performance, prudent capital investment programs and strict cash management and debt policies all contribute to the Celanese equity and cost investments formula for value creation. Over the last three years, equity earnings and dividend income from Celanese s equity and cost investments collectively accounted for approximately 17% of Celanese s operating EBITDA and 50.% of pre-tax adjusted earnings from continuing operations. The company received $539 million in dividend income in the same time period, reflected in cash flows. Significant Contribution to Income and Cash Flow Income Statement in US $ million Cash Flow in US $ million p Earnings - Equity Investments p Dividends - Cost Investments p Dividends - Equity Investments p Dividends - Cost Investments

7 Overview AND Value Proposition 7 Advantaged Geography The majority of Celanese s equity and cost investments are located in Asia the region of the world with the greatest growth potential today. Celanese has estab.lished long-standing relationships with its local partners in the fastest growing regions of the world. Knowledge of the market and access to key customers are just two of the advantages a strong, local partner brings to the ventures. Investments Expand our Global Presence Korea Engineering Plastics Seoul, Korea (HQ) Ulsan, Korea Pyongtaek, Korea Polyplastics Tokyo, Japan (HQ) Fuji City, Japan Fortron Industries Wilmington, N.C. National Methanol Co. Al Jubail, Saudi Arabia Nantong Cellulose Fibers Co. Nantong, China Kunming Cellulose Fibers Co. Kunming, China Zhuhai Cellulose Fibers Co. Zhuhai, China Polyplastics JV (WinTech Polymer) Matsuyama, Japan Polyplastics JV (PTM Eng. Plastics) Nantong, China Polyplastics JV (Taiwan) Kaohsiung, Taiwan Polyplastics Kuantan, Malaysia Ticona Acetate Track Record of Growth Collectively, the Celanese equity investments have made significant contributions to Celanese s total earnings. Buoyed by strong local economies and deep customer relationships, the ventures have grown at rates exceeding local GDP. Polyplastics, Celanese s venture with Daicel, started out in the 1960.s as a Japanese-based company and has since expanded its operations throughout Asia over the years to include Taiwan, Malaysia and now China. Celanese has dedicated resources in place to provide technological, operational, and commercial support. Celanese Equity Investments Total Revenue in US $ million , ,

8 Overview AND Value Proposition 8 The majority of Celanese s investments are operational and include: Advanced Engineered Materials Polyplastics Korea Engineering Plastics Fortron Industries National Methanol Company (Ibn Sina). Consumer Specialties China Acetate Ventures Celanese also holds ownership interests in several InfraServ entities in Germany. The InfraServ entities own and develop industrial parks and provide on-site general and administrative support to tenants. These investments are reported in Other Activities. Major Joint Ventures Operational Investments Location Ownership Accounting Method Partner(s) Description 5 Advanced Engineered Materials National Methanol Company (Ibn Sina) Saudi Arabia 25 % Equity SABIC/Duke Energy Methanol and MTBE POM (est. 2014) Korea Engineering Plastics Co., Ltd. (KEP) Korea 50 % Equity Mitsubishi Gas Chemical Co., Inc. POM Polyplastics Co., Ltd. Japan 45 % Equity Daicel Chemical Industries Ltd. POM Fortron Industries U.S. 50 % Equity Kureha Corporation PPS 5 Consumer Specialities Kunming Cellulose Fibers Co. Ltd. Nantong Cellulose Fibers Co. Ltd. Zhuhai Cellulose Fibers Co. Ltd. Other Equity Investments China 30 % Cost China National Tobacco Corp. China 31 % Cost China National Tobacco Corp. China 30 % Cost China National Tobacco Corp. Acetate tow production Acetate tow and flake production Acetate tow production InfraServ GmbH & Co Gendorf KG InfraServ GmbH & Co Knapsack KG InfraServ GmbH & Co Hoechst KG Germany 39 % Equity Clariant, Aventis Site services Germany 27 % Equity Clariant, Aventis Site services Germany 32 % Equity Clariant, Aventis Site services

9 Overview AND Value Proposition 9 Hidden Value in Operating EBITDA Operating EBITDA, a non-gaap performance measure for Celanese, takes operating profit and adds equity in net earnings from affiliates, income from cost investments, depreciation and amortization, and certain adjustments not indicative of underlying business results. While operating EBITDA does include net earnings from equity affiliates, it does not include the proportional EBITDA above the equity affiliates net earnings. As a result, the true underlying strength of the equity affiliate franchises is conservatively stated in the company s financial statements. As shown on page 27, adding depreciation and amortization to operating profit shows the equity affiliates total contribution. This hidden value, as illustrated below, reflects the true strength of the equity affiliates. Hidden Value through Equity Affiliates (1) Celanese s proportional share of affiliate EBITDA in excess of equity in net earnings of affiliates not included in Operating EBITDA Earnings from equity affiliates included in Operating EBITDA >$100mm annual EBITDA in affiliates not reflected in CE Operating EBITDA E Celanese Revenue with Equity Affiliates Proportional Revenue (1) in US $ million 10,000 8,000 6,000 p Proportional equity affiliates revenue p Celanese 4,000 2, Celanese Operating EBITDA with Equity Affiliates Contribution * (1) in US $ million 1,500 1, p Excess of equity in net earnings of affiliates p Equity affiliates p Cost dividends p Celanese (excl. affiliates) *As originally reported (1) Due to the lack of historic data, this table includes the results of Ibn Sina as a cost investment.

10 Major Equity Investments 10 Affiliate Overview

11 AFFILIATE OVERVIEW MAJOR EQUITY INVESTMENTS 11 Polyplastics Co., Ltd. Company at a glance: Polyplastics is a joint venture between Daicel Chemical Industries Ltd., Japan (55%), and Celanese s Ticona business (45%). Polyplastics is a leading Asian supplier of engineered plastics with annual consolidated sales in of $854 million. Polyplastics has fully owned production facilities in Fuji City, Japan and Kuantan, Malaysia. In addition, Polyplastics has JV production facilities in Kaohsiung, Taiwan (Polyplastics Taiwan), Nantong, China (PTM Engineering Plastics) and in Matsuyama, Japan (WinTech Polymer). Polyplastics has major affiliates in Japan, Malaysia, Singapore, Hong Kong, Thailand, China, Taiwan and India. The Polyplastics Group has been active for over 40..years in Japan and elsewhere in Asia as a leading company in the engineering plastics.field. Polyplastics is a specialized producer and marketer of high performance resins and is a leader in product and application development. Polyplastics strategy is to maintain its leadership position in high performance engineering resins in Asia, and invest to grow with Asian market demand. Foundation: Operational since 1964 Celanese Ownership: 45 % Celanese Segment: Advanced Engineered Materials Headquarters: Tokyo, Japan Employees: Approximately 1,60.0..people Products: Polyacetal (POM), polyphenylene sulfide (PPS), polybutylene terephthalate (PBT), liquid crystal polymer (LCP), transparent resin cyclo-olefin copolymer (COC) Production Location(s): Japan: Fuji, Matsuyama; Malaysia: Kuantan; Taiwan: Kaohsiung; China: Nantong Executive Board: President: Noboru Goto Website:

12 AFFILIATE OVERVIEW MAJOR EQUITY INVESTMENTS 12 Korea Engineering Plastics Co., LTD Company at a glance: Korea Engineering Plastics (KEP) is a joint venture between Celanese s Ticona business (50.%), Mitsubishi Gas Chemical (40.%), and Mitsubishi Corporation (10.%). The company was established in KEP is the leading producer of polyacetal in South Korea and markets polyacetal globally. KEP has polyacetal production facilities in Ulsan, South Korea, compounding facilities for PBT and nylon in Pyongtaek, South Korea, and participates with Polyplastics and Mitsubishi Gas Chemical Company, Inc. in a world-scale POM facility in Nantong, China. KEP s strategy is to continue high profitability through productivity and value-oriented marketing activities. This includes maintaining market leadership in South Korea and growing with the polyacetal market globally. Foundation: Operational since 1987 Celanese Ownership: 50..% CELANESE SEGMENT: Advanced Engineered Materials HEADQUARTERS: Seoul, South Korea Employees: Approximately 180..people Products: POM, PBT and Nylon compounding Production Location(s): Ulsan, Korea; Pyongtaek, Korea Executive Board: President: Choi, Dong-Geon; CFO: Scott Lee Website:

13 AFFILIATE OVERVIEW MAJOR EQUITY INVESTMENTS 13 Fortron Industries Company at a glance: Fortron Industries is a general partnership between Ticona Fortron Inc. (50.% ownership and a wholly-owned subsidiary of CNA Holdings, LLC) and Kureha Corporation (50.% ownership and a wholly-owned subsidiary of Kureha Chemical Industry Co., Ltd). The partnership was organized in the State of North Carolina for the purpose of manufacturing PPS (polyphenylene sulfide) and selling PPS and compounded materials with PPS outside of Japan. This venture combines the sales, marketing, distribution, compounding, and manufacturing expertise of Celanese with the PPS polymer technology expertise of Kureha. Fortron Industries strategy has three key elements: Drive sustainable and profitable growth through innovation with customers globally Position Fortron Industries as the technology leader in the PPS industry Secure a sustainable competitive cost position Foundation: Operational since 1992 Celanese ownership: 50..% Celanese Segment: Advanced Engineered Materials Headquarters: Wilmington, NC, USA Employees: Approximately 40..people Products: PPS Production Location(s): Wilmington, NC, USA Executive Board: President: Thomas Petzel; CFO: Sydney Ingle

14 AFFILIATE OVERVIEW MAJOR EQUITY INVESTMENTS 14 National Methanol Company (Ibn Sina) Company at a glance: With production facilities in Saudi Arabia, National Methanol Company represents 2% of the world s methanol production capacity and is the world s eighth largest methanol producer of methyl tertiary-butyl ether (MTBE). Methanol and MTBE are key global commodity chemical products. Celanese indirectly owns a 25% interest in Ibn Sina through CTE Petrochemicals Co.,. a joint venture with Duke Energy Corporation (which also indirectly owns 25%), with the remainder held by SABIC (50.%). SABIC has responsibility for all product marketing. In April , the company announced that Ibn Sina will construct a 50., ton POM production facility in Saudi Arabia. The investment supports accelerated future growth plans for Celanese s Advanced Engineered Materials segment. Construction of the facility is part of an extension of the Ibn Sina joint venture, which will now run until Foundation: Operational since early s Celanese ownership: 25 %* Celanese Segment: Advanced Engineered Materials as of Q Headquarters: Al Jubail, Saudi Arabia Employees: Approximately people Products: Methanol, MTBE Production Location: Al Jubail, Saudi Arabia Executive Board: President: Mazyad S. Al-Khaldi *Upon successful startup of the POM facility, Celanese s economic interest in Ibn Sina. will increase from 25 percent to a total of 32.5 percent.

15 AFFILIATE OVERVIEW MAJOR EQUITY INVESTMENTS 15 Ibn Sina Accounting and Segment Reporting Changes Accounting Change Q1 Q2 Q 3 Q4 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 YTD IBN Sina cost dividends as reported IBN Sina equity earnings as adjusted Income Statement Impact (53) (78) (27) (29) (34) (29) (119) (3) (3) (18) (17) (41) (27) (24) (51) (10) 3 (1) (2) (1) (1) 5 5 (1) 1 10 (4) (4) Segment Reporting Changes AEM Operating EBITDA (as reported) SG&A and Non Op adjustment IBN Sina equity earnings as adjusted AEM Operating EBITDA (as adjusted) (3) AI Operating EBITDA (as reported) SG&A and Non Op adjustment IBN Sina cost dividends as reported AI Operating EBITDA (as adjusted) (2) (3) (1) (1) (1) (3) (1) (1) (2) (2) (53) (78) (27) (29) (34) (29) (119) (3) (3) (18) (17) (41) (27) (24) (51) (9) (24) 54

16 AFFILIATE OVERVIEW MAJOR COST INVESTMENTS 16 Celanese Acetate China Ventures Companies at a glance: Celanese holds an approximate 30.% ownership interest in three separate acetate production ventures in China. In each instance, the Chinese state-owned tobacco entity, China National. Tobacco Corporation, controls the remainder. With an estimated 30.% share of the world s cigarette production and consumption, China is the world s largest and fastest growing market for acetate tow products. In combination, these ventures represent the market leader in Chinese domestic acetate production and are well positioned in the Chinese cigarette market. In March , Celanese and its partners agreed to expand the manufacturing facilities at all three joint ventures in China. These expansions were completed in In December , Celanese announced a memoradum of understanding with China National Tobacco Corporation to expand flake and tow capacities at its joint venture facility in Nantong, China. The venture received formal approval of its expansion plans in April The ventures fund operations using operating cash flows. Foundation: Operational since 1989 (Nantong Cellulose Fibers Company, Ltd.) and 1995 (Kunming Cellulose Fibers Company, Ltd. and Zhuhai Cellulose Fibers Company, Ltd.) Celanese Ownership: Approximately 30..% Celanese Segment: Consumer Specialties Employees: Approximately 1,50.0..people Products: Flake (Nantong Cellulose Fibers Company, Ltd.), Tow (All) Production Locations: Nantong, Kunming and Zhuhai, China Executive Board: Chairman: Liu Jingru

17 AFFILIATE OVERVIEW MAJOR EQUITY INVESTMENTS 17 InfraServs Company at a glance: Celanese holds indirect ownership interests in several InfraServ Groups located in Germany: InfraServ Hoechst (32%), InfraServ Gendorf (39%), and InfraServ Knapsack (27%). The Infra Servs own and develop industrial parks and provide on-site general and administrative support to tenants. Foundation: 1999 Celanese ownership: Varied see above Celanese Segment: Other Activities Headquarters: Hoechst, Gendorf, and Knapsack, Germany Employees: Approximately 6, people Products: Site services Executive Board: Juergen Vormann, Managing Director. Roland Mohr, Managing Director Websites: Hoechst: Gendorf: Knapsack:

18 Major Equity Investments 18 Key Financial Data

19 KEY FINANCIAL DATA 19 Key Financial Data During , our total investment in equity affiliates increased from $650..million to $663 million at the end of Celanese equity in net earnings of affiliates amounted to $99 million in Performance in KEP remained strong while results in Polyplastics and Fortron reflected the impact of the global economic recession. Affiliates Investment Summary in US $ million, except for percentages Ownership Percentage as of December 31, Carrying Value as of December 31, Share of Earnings (Loss) Year ended December 31, Segment Erfei, A.I.E. (1) Acetyl Intermediates 45 1 National Methanol Company (Ibn Sina) Fortron Industries LLC Korea Engineering Plastics Co., Ltd Polyplastics Co., Ltd Una SA Advanced Engineered Materials Advanced Engineered Materials Advanced Engineered Materials Advanced Engineered Materials Advanced Engineered Materials (3) InfraServ GmbH & Co. Gendorf KG InfraServ GmbH & Co. Höchst KG InfraServ GmbH & Co. Knapsack KG Other Activities Other Activities Other Activities Sherbrooke Capital Consumer Specialities (1) (1) Health and Wellness, L.P. (2) Total (1) The Company divested this investment in July 2009 as part of the sale of PVOH. (2) The Company accounts for its 10% ownership interest in Sherbrooke Capital Health and Wellness, L.P. under the equity method of accounting because the Company is able to exercise significant influence.

20 KEY FINANCIAL DATA 20 Cost investments in generated $57 million of dividend income for Celanese, driven by strong performance in the acetate China ventures.. Cost Investment Summary in US $ million, except for percentages Ownership Percentage as of December 31, Carrying Value as of December 31, Dividend Income for the years ended December 31, Segment Kunming Cellulose Fibers Co. Ltd Nantong Cellulose Fibers Co. Ltd. Consumer Specialities Consumer Specialities Zhuhai Cellulose Fibers Co. Ltd Consumer Specialities InfraServ GmbH & Co. Wiesbaden KG Other Activities Other Total Equity investments have significantly contributed to Celanese over the years. In , Celanese s share of operating profit was $124 million and its share of depreciation and amortization was $81 million. Summary Equity Investments in US $ million (unaudited) Total Results Celanese s Share Total Results Celanese s Share Net Sales 3,921 1,375 4,872 1,673 Operating Profit (Loss) Depreciation and Amortization Net Earnings Dividends and Other Distributions Net Debt Summary Total Dividends and Other Distributions Cost Investments Equity Investments Total The.fiscal year end for all ventures is December 31. All line items as presented in the table above represent the amounts recorded by the ventures based on local generally accepted accounting principles and, with respective to Celanese s share, are computed in proportion to our ownership.

21 Accounting for Equity and Cost Investments

22 Accounting for Equity and Cost Investments 22 Accounting for Equity and Cost Investments Equity Investments Equity accounting is required when the investor typically has 20.% or more ownership with the ability to exercise significant influence over the operating and.financial policies of the investee, but does not exercise control. These investments are: Polyplastics Co., Ltd. 45 % ownership Korea Engineering Plastics Co., LTD 50..% ownership Fortron Industries 50..% ownership National Methanol Company (Ibn Sina) 25 % ownership * Celanese equity investments are classified as and included in Investments in the consolidated balance sheet. Celanese s share of earnings (losses) in the equity investments are classified as Equity in Net Earnings of Affiliates in the consolidated statement of operations. Dividends received from equity investments have no effect in the consolidated statement of operations; rather they reduce the carrying value of the investment. The Celanese consolidated statements of cash.flows include the cash.flow effect of the dividends. Since the consolidated cash.flow is based on Celanese net earnings, the equity in net earnings of affiliates (which are non-cash) must be eliminated and dividends included. The net impact of the elimination of the equity in net earnings of affiliates and addition of dividends is included as Change in equity of affiliates in the consolidated statement of cash.flows. Cost Investments Accounting for investments under the cost method is required when the investor typically has less than 20.% ownership and cannot exercise significant influence over operating and.financial policies of the investee. Celanese has ownership greater then 20.% in three affiliates which are accounted for as cost investments because Celanese does not have the ability to exercise significant influence over their operating and/or.financial policies due to reasons such as inability to be involved in day-to-day operations and the present inability of the entities to provide timely financial information prepared in accordance with US GAAP. These investments are: China Acetate Ventures (3) approximately 30..% ownership Celanese cost investments are classified and included in Investments on the consolidated balance sheet. Earnings of cost investments have no effect on Celanese consolidated statement of operations. Dividends received from the cost investments are recorded in the Celanese consolidated statement of operations as Dividend Income-cost investments. The Celanese consolidated statements of cash.flows include the cost investments dividends in Net earnings (loss). *In connection with the announcement of the construction of the POM production facility, Celanese reassessed the factors surrounding this investment and will change the accounting from the cost method to the equity method beginning April 1,

23 Accounting for Equity and Cost Investments 23 Celanese Corporation and Subsidiaries Consolidated Statements of Operations in US $ millions, except for share and per share data Year Ended December 31, Net sales 5,082 6,823 Cost of sales (4,079) (5,567) Gross profit 1,003 1,256 Selling, general and administrative expenses (469) (540) Amortization of intangible assets (primarily customer relationships) (77) (76) Research and development expenses (75) (80) Other (charges) gains, net (136) (108) Foreign exchange gain (loss), net 2 (4) Gain (loss) on disposition of businesses and assets, net 42 (8) Celanese s share of earnings (loss) of equity investments Dividends from cost investments Operating profit Equity in net earnings (loss) of affiliates Interest expense (207) (261) Interest income 8 31 Dividend income cost investments Other income (expense), net 4 3 Earnings (loss) from continuing operations before tax Income tax (provision) benefit 243 (63) Earnings (loss) from continuing operations Earnings (loss) from operation of discontinued operations 6 (120) Gain (loss) on disposal of discontinued operations - 6 Income tax (provision) benefit from discontinued operations (2) 24 Earnings (loss) from discontinued operations 4 (90) Net earnings (loss) Net (earnings) loss attributable to noncontrolling interests - 1 Net earnings (loss) attributable to Celanese Corporation Cumulative preferred stock dividends (10) (10) Net earnings (loss) available to common shareholders

24 Accounting for Equity and Cost Investments 24 Excerpt from Celanese Corporation and Subsidiaries Consolidated Balance Sheet in US $ millions, except for share and per share data Year Ended December 31, Assets Current assets Cash and cash equivalents 1, Trade receivables third party and affiliates (net of allowance for doubtful accounts 2009: $18; 2008: $25) Non-trade receivables (net of allowance for doubtful accounts 2009: $0; 2008: $1) Inventories Deferred income taxes Marketable securities, at fair value 3 6 Assets held for sale 2 2 Other assets Equity and Cost Investments included here Total current assets 2,856 2,286 Investments in affiliates Property, plant and equipment (net of accumulated depreciation 2009: $1,130; 2008: $1,051) 2,797 2,470 Deferred income taxes Marketable securities, at fair value Other assets Goodwill Intangible assets, net Total assets 8,412 7,158 Liabilities and Shareholders Equity Current liabilities Short-term borrowings and current installments of long-term debt third party and affiliates Trade payables third party and affiliates Other liabilities Deferred income taxes Income taxes payable Total current liabilities 1,607 1,369

25 Accounting for Equity and Cost Investments 25 Excerpt from Celanese Corporation and Subsidiaries Consolidated Statements of Cash Flows in US $ millions Year Ended December 31, Includes cost dividends and equity in net earnings of affiliates Operating activities Net earnings (loss) Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: Other charges (gains), net of amounts used Depreciation, amortization and accretion Deferred income taxes, net (402) (69) (Gain) loss on disposition of businesses and assets, net (40) 1 Other, net Operating cash provided by (used in) discontinued operations (2) 3 Changes in operating assets and liabilities: Trade receivables third party and affiliates, net (79) 339 Inventories Other assets 9 53 Trade payables third party and affiliates 104 (265) Other liabilities 74 (285) Net cash provided by operating activities Investing activities Capital expenditures on property, plant and equipment (176) (274) Acquisitions, net of cash acquired (9) - Proceeds from sale of businesses and assets, net Deferred proceeds on Ticona Kelsterbach plant relocation Capital expenditures related to Ticona Kelsterbach plant relocation (351 (185

26 Accounting for Equity and Cost Investments 26 Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA - a Non-U.S. GAAP Measure - Unaudited in US $ millions Year Ended December 31, Net Sales As adjusted Advanced Engineered Materials 808 1,061 Consumer Specialties 1,084 1,155 Industrial Specialties 974 1,406 Acetyl Intermediates 2,603 3,875 Other Activities (1) 2 2 Intersegment eliminations (389) (676) Total 5,082 6,823 Operating Profit (Loss) Advanced Engineered Materials Consumer Specialties Industrial Specialties Acetyl Intermediates Other Activities (1) (160) (138) Total Other Charges and Other Adjustments Advanced Engineered Materials 25 Consumer Specialties 10 3 Industrial Specialties (26) 13 Acetyl Intermediates Other Activities (1) Total Depreciation and Amortization Expense Advanced Engineered Materials Consumer Specialties Industrial Specialties Acetyl Intermediates Other Activities (1) 11 9 Total Business Operating EBITDA Advanced Engineered Materials Consumer Specialties Industrial Specialties Acetyl Intermediates Other Activities (1) (119) (107) Total Equity Earnings, Cost - Dividend Income and Other Income (Expense) Advanced Engineered Materials Consumer Specialties Industrial Specialties Acetyl Intermediates 9 8 Other Activities (1) Total Operating EBITDA Advanced Engineered Materials Consumer Specialties Industrial Specialties Acetyl Intermediates Other Activities (1) (101) (92) Total 857 1,163 (1) Other Activities primarily includes corporate selling, general and administrative expenses and the results from captive insurance companies.

27 Accounting for Equity and Cost Investments 27 Celanese Corporation Equity Affiliate Data Celanese reports preliminary results for its equity affiliates on a quarterly basis. Results can be found on Table 8 of the company s quarterly earnings releases. Equity Affiliate Preliminary Results - Total - Unaudited in US $ millions Year Ended December 31, Net Sales Ticona Affiliates - Asia (1) 1,105 1,394 Ticona Affiliates - Middle East (2) 630 1,235 Infraserv Affiliates (3) 2,186 2,243 Total 3,921 4,872 Operating Profit Ticona Affiliates - Asia (1) Ticona Affiliates - Middle East (2) Infraserv Affiliates (3) Total Depreciation and Amortization Ticona Affiliates - Asia (1) Ticona Affiliates - Middle East (2) Infraserv Affiliates (3) Total Affiliate EBITDA (4) Ticona Affiliates - Asia (1) Ticona Affiliates - Middle East (2) Infraserv Affiliates (3) Total 635 1,019 Net Income Ticona Affiliates - Asia (1) Ticona Affiliates - Middle East (2) Infraserv Affiliates (3) Total Net Debt Ticona Affiliates - Asia (1) Ticona Affiliates - Middle East (2) (39) (121) Infraserv Affiliates (3) Total (1) Ticona Affiliates - Asia accounted for using the equity method includes Polyplastics (45%), Korean Engineering Plastics (50%), Fortron Industries (50%), Una SA (50%). (2) Ticona Affiliates - Middle East accounted for using the equity method includes National Methanol Company (IBN Sina) (25%). (3) Infraserv Affiliates accounted for using the equity method includes Infraserv Hoechst (32%), Infraserv Gendorf (39%) and Infraserv Knapsack (27%). (4) Affiliate EBITDA, a non-u.s. GAAP measure, is the sum of Operating Profit and Depreciation and Amortization.

28 Accounting for Equity and Cost Investments 28 Equity Affiliate Preliminary Results - Celanese Proportional Share - Unaudited (5) in US $ millions Year Ended December 31, Proportional Net Sales Ticona Affiliates - Asia (1) Ticona Affiliates - Middle East (2) Infraserv Affiliates (3) Total 1,375 1,673 Proportional Operating Profit Ticona Affiliates - Asia (1) Ticona Affiliates - Middle East (2) Infraserv Affiliates (3) Total Proportional Depreciation and Amortization Ticona Affiliates - Asia (1) Ticona Affiliates - Middle East (2) 8 8 Infraserv Affiliates (3) Total Proportional Affiliate EBITDA (4) Ticona Affiliates - Asia (1) Ticona Affiliates - Middle East (2) Infraserv Affiliates (3) Total Equity in net earnings of affiliates (as reported on the Income Statement) Ticona Affiliates - Asia (1)(7) 7 36 Ticona Affiliates - Middle East (2) Infraserv Affiliates (3) Total Proportional Affiliate EBITDA in excess of Equity in net earnings of affiliates (6) Ticona Affiliates - Asia (1) Ticona Affiliates - Middle East (2) Infraserv Affiliates (3) Total Proportional Net Debt Ticona Affiliates - Asia (1) Ticona Affiliates - Middle East (2) (10) (30) Infraserv Affiliates (3) Total (1) Ticona Affiliates - Asia accounted for using the equity method includes Polyplastics (45%), Korean Engineering Plastics (50%), Fortron Industries (50%), Una SA (50%). (2) Ticona Affiliates - Middle East accounted for using the equity method includes National Methanol Company (IBN Sina) (25%). (3) Infraserv Affiliates accounted for using the equity method includes Infraserv Hoechst (32%), Infraserv Gendorf (39%) and Infraserv Knapsack (27%). (4) Affiliate EBITDA, a non-u.s. GAAP measure, is the sum of Operating Profit and Depreciation and Amortization. (5) Calculated by multiplying each affiliate s total share amount by Celanese s respective ownership percentage, netted by reporting category. (6) Calculated as Affiliate EBITDA less Equity in net earnings of affiliates; not included in Celanese operating EBITDA. (7) The year ended December 31, 2009 excludes a one-time tax adjustment to Equity in net earnings of affiliates of $19 million.

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