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Celanese 3Q 2006 Earnings
Conference Call / Webcast
Tuesday, October 31, 2006 9:00 a.m. CT




Dave Weidman, President and CEO
John J. Gallagher III, Executive Vice President and CFO
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 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.

     This presentation reflects three performance measures, operating EBITDA, adjusted earnings per share and net debt
     as non-U.S. GAAP measures. The most directly comparable financial measure presented in accordance with U.S.
     GAAP in our consolidated financial statements for operating EBITDA is operating profit; for adjusted earnings per
     share is earnings per common share-diluted; and for net debt is total debt.


              Operating EBITDA, a measure used by management to measure performance, is defined as operating profit
              from continuing operations, plus equity in net earnings from affiliates, other income and depreciation and
              amortization, and further adjusted for other charges and adjustments. Our management believes
              operating EBITDA is useful to investors because it is one of the primary measures our management uses for
              its planning and budgeting processes and to monitor and evaluate financial and operating results.
              Operating EBITDA is not a recognized term under U.S. GAAP and does not purport to be an alternative to
              operating profit as a measure of operating performance or to cash flows from operating activities as a
              measure of liquidity. Because not all companies use identical calculations, this presentation of operating
              EBITDA may not be comparable to other similarly titled measures of other companies. Additionally,
              operating EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as
              it does not consider certain cash requirements such as interest payments, tax payments and debt service
              requirements nor does it represent the amount used in our debt covenants.

              Adjusted earnings per share is a measure used by management to measure performance. It is defined as net
              earnings (loss) available to common shareholders plus preferred dividends, adjusted for other charges and
              adjustments, and divided by the number of basic common shares, diluted preferred shares, and options
              valued using the treasury method. We provide guidance on an adjusted earnings per share basis and are
              unable to reconcile forecasted adjusted earnings per share to a GAAP financial measure because a forecast
              of Other Items is not practical. We believe that the presentation of this non-U.S. GAAP measure provides
              useful information to management and investors regarding various financial and business trends relating
              to our financial condition and results of operations, and that when U.S. GAAP information is viewed in
              conjunction with non-U.S. GAAP information, investors are provided with a more meaningful
              understanding of our ongoing operating performance. This non-U.S. GAAP information is not intended to
              be considered in isolation or as a substitute for U.S. GAAP financial information.

              Net debt is defined as total debt less cash and cash equivalents. We believe that the presentation of this
              non-U.S. GAAP measure provides useful information to management and investors regarding changes to
              the company’s capital structure. Our management and credit analysts use net debt to evaluate the
              company's capital structure and assess credit quality. This non-U.S. GAAP information is not intended to
              be considered in isolation or as a substitute for U.S. GAAP financial information.
Dave Weidman
President and Chief Executive Officer
Celanese Corporation Q3 2006 Highlights
                        3rd Qtr 2006   3rd Qtr 2005
in $ millions                                         9M YTD      9M YTD
(except EPS)                                           2006        2005
Net Sales                                     1,526       5,000       4,493
                               1,685

                                              $0.49                   $1.66
Adjusted EPS                   $0.79                      $2.23

Operating EBITDA                                252                    802
                                 322                       936

     ≥ Quarterly net sales increase 10% from prior year
     ≥ Operating profit in Q3 up 111% on strong volumes, higher
       margins and fewer other charges and adjustments
     ≥ Adjusted EPS in Q3 up 61% to $0.79
     ≥ Operating EBITDA in Q3 increases 28% to $322 million



                                                                              4
Integrated Hybrid Business Model
Drives Shareholder Value

≥ Chemical Products      ≥ Continued robust demand
                         ≥ Profitable growth in Asia



≥ Ticona                 ≥ Innovation and market penetration fuel high
                           growth


≥ Acetate Products       ≥ Revitalization efforts on track
                         ≥ Proposed Acetate Products Limited acquisition



≥ Performance Products   ≥ Continues to deliver stable earnings and strong
                           cash flow



                                                                             5
John J. Gallagher III
Executive Vice President and Chief Financial Officer
Celanese Corporation Financial Highlights

                                                                             3rd Qtr 2006               3rd Qtr 2005
             in $ millions (except EPS)
             Net Sales                                                                                          1,526
                                                                                            1,685
             Operating Profit                                                                                      95
                                                                                                  200
             Net Earnings                                                                                          45
                                                                                                  109
             Special Items
                Other Charges/Adjustments                                                           6              40
                                                                                                               $0.49 2
                                                                                           $0.791
             Adjusted EPS
             Operating EBITDA                                                                                     252
                                                                                                  322




 1. Based on diluted shares of 171.2 million as of Sept. 30, 2006, and a 25% effective tax rate
 2. Based on diluted shares of 171.9 million as of Sept. 30, 2005, and a 24% effective tax rate
                                                                                                                         7
Chemical Products

                                                 3rd Qtr 2006
         in $ millions
         Net Sales                              $1,206 up 11%
         Operating EBITDA                        $234 up 16%

Third Quarter 2006:
> Strong earnings on continued high utilization across industry
> Significantly improved operating profit as increases in volume and
  price outpaced higher raw material costs
> Impact of Celanese specific opportunities on operating margin
> Reduced dividends from Saudi cost investment (IBN Sina)


            Strong integrated chain of acetyl products
                                                                       8
Ticona Technical Polymers

                                                 3rd Qtr 2006
        in $ millions
        Net Sales                                  $230 up 8%
        Operating EBITDA                           $66 up 32%


Third Quarter 2006:
> Increased penetration in key customer segments
> Operating margins expanded on increased volume and reduced
  spending, offsetting higher raw material and energy costs
> Product/customer mix slightly affect year over year pricing
> Healthy demand in Europe


         Focus on increased growth through innovation
                                                                9
Acetate Products
                                                     3rd Qtr 2006
           in $ millions
           Net Sales                                  $171 up 6%
           Operating EBITDA                           $29 up 81%
> Revitalization still on track
> China venture tow expansion complete, moving forward on flake
  expansion

Performance Products
                                                     3rd Qtr 2006
           in $ millions
           Net Sales                               $41 down 11%
           Operating EBITDA                        $13 down 19%

> Stable earnings healthy sweetener demand
> Lower volume driven by timing of sales in the carbonated beverage
  season; no change in underlying fundamentals

                 Attractive, cash generating businesses
                                                                      10
Significant Contributions Continue from
 Equity and Cost Investments
                     • YTD 2006: Cash flow approximates earnings
                       impact
                     • FY 2006 guidance: Income and cash impact
                       similar to 2005
                Income Statement                                    Cash Flow

140                                               140
120                                               120
100                                               100
                                             62                                  54             62
 80                                                80
                               54
 60                                                60
 40                                                40
        33
                                             59           33                     60
                    16                                                                          53
                               48                                     16
 20                                                20
        21          20                                                17
                                                          14
  0                                                 0
      Q3 2005     Q3 2006   YTD 2005   YTD 2006         Q3 2005    Q3 2006    YTD 2005   YTD 2006
             Dividends - Cost Investments                      Dividends - Cost Investments
             Earnings - Equity Investments                     Dividends - Equity Investments




                                                                                                     11
Capitalization
 (in $millions)
                                                                  Dec 31,
                                                       Sept 30,
                                                                   2005
                                                        2006
                                                          513       390
Cash

                                                         1,613    1,708
 Senior Credit Term Loan
                                                             -        -
 Senior Credit Revolver
                                                             -        -
 Floating Rate Term Loan
                                                         1,613    1,708
Total Senior Debt
                                                           800      800
  Senior Sub Notes ($)
                                                           164      153
 Senior Sub Notes ( *)
                                                           463      397
 Other Debt
                                                         3,040    3,058
Total Cash Pay Debt
                                                            79       73
  Discount Notes Series A
                                                           330      306
 Discount Notes Series B
                                                         3,449    3,437
Total Debt
                                                           546      235
  Shareholders' Equity
                                                         3,995    3,672
Total Capitalization

                                                        2,936     3,047
Net Debt(Total Debt Less Cash)
                                                                            12
* Translated at 1.266 - effective date Sept 30, 2006
2006 Business Outlook

              ► Favorable industry dynamics
Chemical
Products      ► Continued strong global demand
                                                              2006 Adjusted
              ► Increasing penetration in key customer
                                                              EPS Guidance
                segments
Ticona                                                        $2.70 to $2.80
              ► Improved global demand
              ► Positive impact of COC sale continues
                                                            > Forecasted tax rate
              ► Improving earnings with revitalization on     for 2006 of 27%
Acetate         track
Products
              ► On path to targeted profitability levels
              ► Planned price declines continue
Performance
              ► Underlying business fundamentals
Products
                unchanged


                                                                                    13
2006 Guidance
► Adjusted EPS: $2.70 to $2.80
► Depreciation/Amortization
    • $275 - $300 million
► Cash Interest Expense
    • $230 - $250 million
► Effective Tax Rate
    • 27%
► Capital Expenditures
    • $200 - $250 million
► CE Equity
    • 158.6 million shares common stock outstanding
    • 0.6 million stock option grants*
    • 12 million shares convertible preferred


* Based on total of 11 million stock option grants valued using the Treasury Method as of Sept. 30,2006.
                                                                                                           14
Appendix




15
Reg G: Reconciliation of Diluted Adjusted EPS

      Ta ble 6


      Adjuste d Ea rnings Pe r Sha re - Re concilia tion of a Non-U.S. GAAP Me a sure




                                                                                                                           Three Months Ended                          Nine Months Ended
                                                                                                                              Septem ber 30,                             Septem ber 30,
      (in $ m illions, except per share data)                                                                               2006        2005                            2006       2005
      Earnings from continuing operations
                                                                                                                                                           77                                          216
       before tax and m inority interests                                                                                          181                                        490
      N on-GAAP Adjustm ents:
       Other charges and other adjus tm ents *                                                                                                             40                                          101
                                                                                                                                        6                                          41
       Refinancing cos ts                                                                                                                                  -                                           102
                                                                                                                                    -                                          -
      Adjusted earnings from continuing operations
                                                                                                                                                         117                                        419
       before tax and m inority interests                                                                                          187                                        531
      Incom e tax provis ion on adjus ted earnings **                                                                                                    (28)                                      (102)
                                                                                                                                   (47)                                      (143)
      Minority interes ts                                                                                                                                 (3)                                       (41)
                                                                                                                                    (2)                                        (3)
      Earnings from dis continued operations , net of tax and adjus tm ents ***                                                                           (2)                                         6
                                                                                                                                    (2)                                        (3)
      Preferred dividends                                                                                                                                 (3)                                        (7)
                                                                                                                                    (3)                                        (8)
                                                                                                                                                          81                                        275
      Adjusted net earnings available to com m on shareholders                                                                     133                                        374
      Add back: Preferred dividends                                                                                                                        3                                          7
                                                                                                                                     3                                          8
      Adjusted net earnings for diluted adjusted EPS                                                                               136                    84                  382                   282

      Diluted shares (m illions)
      Weighted average s hares outs tanding                                                                                                           158.5                                      158.5
                                                                                                                                158.6                                      158.6
      As s um ed convers ion of Preferred Shares                                                                                                       12.0                                       10.9
                                                                                                                                 12.0                                       12.0
      As s um ed convers ion of s tock options                                                                                                          1.4                                        0.5
                                                                                                                                  0.6                                        1.0
      Total diluted s hares                                                                                                                           171.9                                      169.9
                                                                                                                                171.2                                      171.6
      Adjusted EPS from continuing operations                                                                                    0.80                  0.50                 2.25                  1.62

      Earnings per com m on s hare from dis continued operations , net of
      adjus tm ents                                                                                                                                                                                0.04
                                                                                                                                 (0.01)               (0.01)                (0.02)
      Adjusted EPS                                                                                                                0.79                 0.49                  2.23                  1.66

      * See T able 7 fo r details
      ** T he U.S. GA A P t ax rat e fo r the three m o nt hs ended Sept em ber 30, 2006 is 40% and nine m o nt hs ended Sept em ber 30, 2006 is 32%. T he c o m pany’ s adjus t ed
        t ax rat e fo r the three m o nt hs ended Sept em ber 30, 2006 is 25% and t he res ulting year to date adjus ted tax rate is 27%. T he diff erenc e bet ween o ur US GA A P
        t axes and o ur adjus t ed t axes are due to : (i) the fav o rable im pac t o f purc has e ac c o unt ing o n o ur net o perating lo s s es ($ 23 m illio n), and (ii) the elim inatio n o f
        dis c rete t ax it em s no t related to t he c urrent perio d ($ 4 m illio n).
                                                                                                                                                                                                             16
      *** D o es no t inc lude gain o n s ale related to dis c o ntinued o peratio ns .
Reg G: Reconciliation of Net Debt




         Ta ble 5

         Ne t De bt - Re concila tion of a Non-U.S. GAAP Me a sure
                                                                            September 30,December 31,
         (in $ m illions)                                                       2006        2005
         Short-term borrowings and current
            ins tallm ents of long-term debt - third party and affiliates                       155
                                                                                    205
         Long-term debt                                                                       3,282
                                                                                  3,244
         Total debt                                                               3,449       3,437
         Les s : Cas h and cas h equivalents                                                    390
                                                                                    513
         Net Debt                                                                 2,936       3,047




                                                                                                        17
Reg G: Reconciliation of Other Charges and Other
Adjustments
      Ta ble 7

      Re concilia tion of Othe r Cha rge s a nd Othe r Adjustme nts


      Othe r Cha rge s: *
                                                                       Three Months Ended         Nine Months Ended
                                                                          September 30,             September 30,
      (in $ m illions)                                                 2006         2005           2006        2005
      Em ployee term ination benefits                                                       8                       16
                                                                           -                            11
      Plant/office clos ures                                                               13                       15
                                                                           -                             -
                                                                                           21                       31
        Total restructuring                                                -                            11
      As s et im pairm ents                                                                 1                       25
                                                                           -                             -
      Ins urance recoveries as s ociated with plum bing cas es                                                       (4)
                                                                           -             -              (3)
      Other                                                                                                         37 **
                                                                           -                2             4
        Total                                                              -               24           12          89



      Othe r Adjustme nts: ***
                                                                       Three Months Ended         Nine Months Ended
                                                                          September 30,             September 30,
      (in $ m illions)                                                 2006         2005           2006        2005
      Executive s everance & legal cos ts related
        to Squeeze-Out                                                                   -                         -
                                                                               5                           28
      Favorable im pact on non-operating foreign
        exchange pos ition                                                               -                         (14)
                                                                              -                        -
      Advis or m onitoring fee                                                           -                           10
                                                                              -                        -
      Purchas e accounting for inventories                                                   16                      16
      Bus ines s Optim ization                                                           -                         -
                                                                               4                            4
      Other                                                                              -                         -
                                                                              (3)                          (3)
                                                                               6             16            29       12
        Total

                                                                               6             40            41     101
      Total other charges and other adjustments
      * Previously describ ed as Special Charges
      ** Termination of advisor monitoring fee
                                                                                                                            18
      *** These items are included in net earnings b ut not included in other charges.
Reg G: Reconciliation of Operating EBITDA
     Ta ble 1

     Se gme nt Da ta a nd Re concilia tion of Ope ra ting Profit (Loss) to Ope ra ting EBITDA -
      a Non-U.S. GAAP Me a sure .

                                                                                      Three Months Ended                    Nine Months Ended
                                                                                        September 30,                         September 30,
     (in $ m illions)                                                                  2006        2005                     2006         2005
     Ne t Sa le s
      Chem ical Products                                                                                     1,091                            3,203
                                                                                          1,206                                3,558
      Technical Polym ers Ticona                                                                               212                              674
                                                                                            230                                  691
      Acetate Products                                                                                         162                              499
                                                                                            171                                  514
      Perform ance Products                                                                                     46                              140
                                                                                             41                                  138
      Other Activities *                                                                                        55                               75
                                                                                             69                                  198
      Inters egm ent elim inations                                                                             (40)                             (98)
                                                                                            (32)                                 (99)
     Total                                                                                1,685              1,526             5,000          4,493

     Ope ra ting Profit (Loss)
      Chem ical Products                                                                                       101                              436
                                                                                             170                                    475
      Technical Polym ers Ticona                                                                                18                               62
                                                                                              37                                    116
      Acetate Products                                                                                           4                               24
                                                                                              23                                     75
      Perform ance Products                                                                                     13                               41
                                                                                              10                                     43
      Other Activities *                                                                                       (41)                            (157)
                                                                                             (40)                                  (147)
     Total                                                                                   200                95                  562         406

     Equity Ea rnings a nd Othe r Income /(Ex pe nse) **
      Chem ical Products                                                                                            36                          44
                                                                                                 22                                 47
      Technical Polym ers Ticona                                                                                    15                          43
                                                                                                 13                                 42
      Acetate Products                                                                                          -                                2
                                                                                             -                                      21
      Perform ance Products                                                                                         (2)                         (2)
                                                                                             -                                       1
      Other Activities *                                                                                            (2)                          8
                                                                                                 11                                  9
     Total                                                                                       46                 47             120          95

     Othe r Cha rge s a nd Othe r Adjustme nts ***
      Chem ical Products                                                                                            19                          23
                                                                                                  3                                     10
      Technical Polym ers Ticona                                                                                     4                          25
                                                                                             -                                          (4)
      Acetate Products                                                                                               9                          10
                                                                                             -                                      -
      Perform ance Products                                                                                          1                           1
                                                                                             -                                      -
      Other Activities *                                                                                             7                          42
                                                                                                  3                                     35
     Total                                                                                        6                 40                  41     101

     De pre cia tion a nd Amortiza tion Ex pe nse
      Chem ical Products                                                                                            45                         118
                                                                                                 39                                118
      Technical Polym ers Ticona                                                                                    13                          42
                                                                                                 16                                 48
      Acetate Products                                                                                               3                          21
                                                                                                  6                                 18
      Perform ance Products                                                                                          4                          10
                                                                                                  3                                 11
      Other Activities *                                                                                             5                           9
                                                                                                  6                                 18
     Total                                                                                       70                 70             213         200

     Ope ra ting EBITDA
      Chem ical Products                                                                                       201                             621
                                                                                             234                                   650
      Technical Polym ers Ticona                                                                                50                             172
                                                                                              66                                   202
      Acetate Products                                                                                          16                              57
                                                                                              29                                   114
      Perform ance Products                                                                                     16                              50
                                                                                              13                                    55
      Other Activities *                                                                                       (31)                            (98)
                                                                                             (20)                                  (85)
     Total                                                                                   322               252                 936         802
     * Other Activities primarily includes corporate selling, general and administrative expenses
        and the results from AT Plastics and captive insurance companies.
     ** Includes equity earnings from affiliates and other income/(expense), which is primarily dividends
        from cost investments.
     *** Excludes adjustments to minority interest, net interest, taxes, depreciation, amortization and discontinued operations.
19

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celanese 3q_2006_earnings_slides

  • 1. Celanese 3Q 2006 Earnings Conference Call / Webcast Tuesday, October 31, 2006 9:00 a.m. CT Dave Weidman, President and CEO John J. Gallagher III, Executive Vice President and CFO
  • 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 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. This presentation reflects three performance measures, operating EBITDA, adjusted earnings per share and net debt as non-U.S. GAAP measures. The most directly comparable financial measure presented in accordance with U.S. GAAP in our consolidated financial statements for operating EBITDA is operating profit; for adjusted earnings per share is earnings per common share-diluted; and for net debt is total debt. Operating EBITDA, a measure used by management to measure performance, is defined as operating profit from continuing operations, plus equity in net earnings from affiliates, other income and depreciation and amortization, and further adjusted for other charges and adjustments. Our management believes operating EBITDA is useful to investors because it is one of the primary measures our management uses for its planning and budgeting processes and to monitor and evaluate financial and operating results. Operating EBITDA is not a recognized term under U.S. GAAP and does not purport to be an alternative to operating profit as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Because not all companies use identical calculations, this presentation of operating EBITDA may not be comparable to other similarly titled measures of other companies. Additionally, operating EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements nor does it represent the amount used in our debt covenants. Adjusted earnings per share is a measure used by management to measure performance. It is defined as net earnings (loss) available to common shareholders plus preferred dividends, adjusted for other charges and adjustments, and divided by the number of basic common shares, diluted preferred shares, and options valued using the treasury method. We provide guidance on an adjusted earnings per share basis and are unable to reconcile forecasted adjusted earnings per share to a GAAP financial measure because a forecast of Other Items is not practical. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding various financial and business trends relating to our financial condition and results of operations, and that when U.S. GAAP information is viewed in conjunction with non-U.S. GAAP information, investors are provided with a more meaningful understanding of our ongoing operating performance. This non-U.S. GAAP information is not intended to be considered in isolation or as a substitute for U.S. GAAP financial information. Net debt is defined as total debt less cash and cash equivalents. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding changes to the company’s capital structure. Our management and credit analysts use net debt to evaluate the company's capital structure and assess credit quality. This non-U.S. GAAP information is not intended to be considered in isolation or as a substitute for U.S. GAAP financial information.
  • 3. Dave Weidman President and Chief Executive Officer
  • 4. Celanese Corporation Q3 2006 Highlights 3rd Qtr 2006 3rd Qtr 2005 in $ millions 9M YTD 9M YTD (except EPS) 2006 2005 Net Sales 1,526 5,000 4,493 1,685 $0.49 $1.66 Adjusted EPS $0.79 $2.23 Operating EBITDA 252 802 322 936 ≥ Quarterly net sales increase 10% from prior year ≥ Operating profit in Q3 up 111% on strong volumes, higher margins and fewer other charges and adjustments ≥ Adjusted EPS in Q3 up 61% to $0.79 ≥ Operating EBITDA in Q3 increases 28% to $322 million 4
  • 5. Integrated Hybrid Business Model Drives Shareholder Value ≥ Chemical Products ≥ Continued robust demand ≥ Profitable growth in Asia ≥ Ticona ≥ Innovation and market penetration fuel high growth ≥ Acetate Products ≥ Revitalization efforts on track ≥ Proposed Acetate Products Limited acquisition ≥ Performance Products ≥ Continues to deliver stable earnings and strong cash flow 5
  • 6. John J. Gallagher III Executive Vice President and Chief Financial Officer
  • 7. Celanese Corporation Financial Highlights 3rd Qtr 2006 3rd Qtr 2005 in $ millions (except EPS) Net Sales 1,526 1,685 Operating Profit 95 200 Net Earnings 45 109 Special Items Other Charges/Adjustments 6 40 $0.49 2 $0.791 Adjusted EPS Operating EBITDA 252 322 1. Based on diluted shares of 171.2 million as of Sept. 30, 2006, and a 25% effective tax rate 2. Based on diluted shares of 171.9 million as of Sept. 30, 2005, and a 24% effective tax rate 7
  • 8. Chemical Products 3rd Qtr 2006 in $ millions Net Sales $1,206 up 11% Operating EBITDA $234 up 16% Third Quarter 2006: > Strong earnings on continued high utilization across industry > Significantly improved operating profit as increases in volume and price outpaced higher raw material costs > Impact of Celanese specific opportunities on operating margin > Reduced dividends from Saudi cost investment (IBN Sina) Strong integrated chain of acetyl products 8
  • 9. Ticona Technical Polymers 3rd Qtr 2006 in $ millions Net Sales $230 up 8% Operating EBITDA $66 up 32% Third Quarter 2006: > Increased penetration in key customer segments > Operating margins expanded on increased volume and reduced spending, offsetting higher raw material and energy costs > Product/customer mix slightly affect year over year pricing > Healthy demand in Europe Focus on increased growth through innovation 9
  • 10. Acetate Products 3rd Qtr 2006 in $ millions Net Sales $171 up 6% Operating EBITDA $29 up 81% > Revitalization still on track > China venture tow expansion complete, moving forward on flake expansion Performance Products 3rd Qtr 2006 in $ millions Net Sales $41 down 11% Operating EBITDA $13 down 19% > Stable earnings healthy sweetener demand > Lower volume driven by timing of sales in the carbonated beverage season; no change in underlying fundamentals Attractive, cash generating businesses 10
  • 11. Significant Contributions Continue from Equity and Cost Investments • YTD 2006: Cash flow approximates earnings impact • FY 2006 guidance: Income and cash impact similar to 2005 Income Statement Cash Flow 140 140 120 120 100 100 62 54 62 80 80 54 60 60 40 40 33 59 33 60 16 53 48 16 20 20 21 20 17 14 0 0 Q3 2005 Q3 2006 YTD 2005 YTD 2006 Q3 2005 Q3 2006 YTD 2005 YTD 2006 Dividends - Cost Investments Dividends - Cost Investments Earnings - Equity Investments Dividends - Equity Investments 11
  • 12. Capitalization (in $millions) Dec 31, Sept 30, 2005 2006 513 390 Cash 1,613 1,708 Senior Credit Term Loan - - Senior Credit Revolver - - Floating Rate Term Loan 1,613 1,708 Total Senior Debt 800 800 Senior Sub Notes ($) 164 153 Senior Sub Notes ( *) 463 397 Other Debt 3,040 3,058 Total Cash Pay Debt 79 73 Discount Notes Series A 330 306 Discount Notes Series B 3,449 3,437 Total Debt 546 235 Shareholders' Equity 3,995 3,672 Total Capitalization 2,936 3,047 Net Debt(Total Debt Less Cash) 12 * Translated at 1.266 - effective date Sept 30, 2006
  • 13. 2006 Business Outlook ► Favorable industry dynamics Chemical Products ► Continued strong global demand 2006 Adjusted ► Increasing penetration in key customer EPS Guidance segments Ticona $2.70 to $2.80 ► Improved global demand ► Positive impact of COC sale continues > Forecasted tax rate ► Improving earnings with revitalization on for 2006 of 27% Acetate track Products ► On path to targeted profitability levels ► Planned price declines continue Performance ► Underlying business fundamentals Products unchanged 13
  • 14. 2006 Guidance ► Adjusted EPS: $2.70 to $2.80 ► Depreciation/Amortization • $275 - $300 million ► Cash Interest Expense • $230 - $250 million ► Effective Tax Rate • 27% ► Capital Expenditures • $200 - $250 million ► CE Equity • 158.6 million shares common stock outstanding • 0.6 million stock option grants* • 12 million shares convertible preferred * Based on total of 11 million stock option grants valued using the Treasury Method as of Sept. 30,2006. 14
  • 16. Reg G: Reconciliation of Diluted Adjusted EPS Ta ble 6 Adjuste d Ea rnings Pe r Sha re - Re concilia tion of a Non-U.S. GAAP Me a sure Three Months Ended Nine Months Ended Septem ber 30, Septem ber 30, (in $ m illions, except per share data) 2006 2005 2006 2005 Earnings from continuing operations 77 216 before tax and m inority interests 181 490 N on-GAAP Adjustm ents: Other charges and other adjus tm ents * 40 101 6 41 Refinancing cos ts - 102 - - Adjusted earnings from continuing operations 117 419 before tax and m inority interests 187 531 Incom e tax provis ion on adjus ted earnings ** (28) (102) (47) (143) Minority interes ts (3) (41) (2) (3) Earnings from dis continued operations , net of tax and adjus tm ents *** (2) 6 (2) (3) Preferred dividends (3) (7) (3) (8) 81 275 Adjusted net earnings available to com m on shareholders 133 374 Add back: Preferred dividends 3 7 3 8 Adjusted net earnings for diluted adjusted EPS 136 84 382 282 Diluted shares (m illions) Weighted average s hares outs tanding 158.5 158.5 158.6 158.6 As s um ed convers ion of Preferred Shares 12.0 10.9 12.0 12.0 As s um ed convers ion of s tock options 1.4 0.5 0.6 1.0 Total diluted s hares 171.9 169.9 171.2 171.6 Adjusted EPS from continuing operations 0.80 0.50 2.25 1.62 Earnings per com m on s hare from dis continued operations , net of adjus tm ents 0.04 (0.01) (0.01) (0.02) Adjusted EPS 0.79 0.49 2.23 1.66 * See T able 7 fo r details ** T he U.S. GA A P t ax rat e fo r the three m o nt hs ended Sept em ber 30, 2006 is 40% and nine m o nt hs ended Sept em ber 30, 2006 is 32%. T he c o m pany’ s adjus t ed t ax rat e fo r the three m o nt hs ended Sept em ber 30, 2006 is 25% and t he res ulting year to date adjus ted tax rate is 27%. T he diff erenc e bet ween o ur US GA A P t axes and o ur adjus t ed t axes are due to : (i) the fav o rable im pac t o f purc has e ac c o unt ing o n o ur net o perating lo s s es ($ 23 m illio n), and (ii) the elim inatio n o f dis c rete t ax it em s no t related to t he c urrent perio d ($ 4 m illio n). 16 *** D o es no t inc lude gain o n s ale related to dis c o ntinued o peratio ns .
  • 17. Reg G: Reconciliation of Net Debt Ta ble 5 Ne t De bt - Re concila tion of a Non-U.S. GAAP Me a sure September 30,December 31, (in $ m illions) 2006 2005 Short-term borrowings and current ins tallm ents of long-term debt - third party and affiliates 155 205 Long-term debt 3,282 3,244 Total debt 3,449 3,437 Les s : Cas h and cas h equivalents 390 513 Net Debt 2,936 3,047 17
  • 18. Reg G: Reconciliation of Other Charges and Other Adjustments Ta ble 7 Re concilia tion of Othe r Cha rge s a nd Othe r Adjustme nts Othe r Cha rge s: * Three Months Ended Nine Months Ended September 30, September 30, (in $ m illions) 2006 2005 2006 2005 Em ployee term ination benefits 8 16 - 11 Plant/office clos ures 13 15 - - 21 31 Total restructuring - 11 As s et im pairm ents 1 25 - - Ins urance recoveries as s ociated with plum bing cas es (4) - - (3) Other 37 ** - 2 4 Total - 24 12 89 Othe r Adjustme nts: *** Three Months Ended Nine Months Ended September 30, September 30, (in $ m illions) 2006 2005 2006 2005 Executive s everance & legal cos ts related to Squeeze-Out - - 5 28 Favorable im pact on non-operating foreign exchange pos ition - (14) - - Advis or m onitoring fee - 10 - - Purchas e accounting for inventories 16 16 Bus ines s Optim ization - - 4 4 Other - - (3) (3) 6 16 29 12 Total 6 40 41 101 Total other charges and other adjustments * Previously describ ed as Special Charges ** Termination of advisor monitoring fee 18 *** These items are included in net earnings b ut not included in other charges.
  • 19. Reg G: Reconciliation of Operating EBITDA Ta ble 1 Se gme nt Da ta a nd Re concilia tion of Ope ra ting Profit (Loss) to Ope ra ting EBITDA - a Non-U.S. GAAP Me a sure . Three Months Ended Nine Months Ended September 30, September 30, (in $ m illions) 2006 2005 2006 2005 Ne t Sa le s Chem ical Products 1,091 3,203 1,206 3,558 Technical Polym ers Ticona 212 674 230 691 Acetate Products 162 499 171 514 Perform ance Products 46 140 41 138 Other Activities * 55 75 69 198 Inters egm ent elim inations (40) (98) (32) (99) Total 1,685 1,526 5,000 4,493 Ope ra ting Profit (Loss) Chem ical Products 101 436 170 475 Technical Polym ers Ticona 18 62 37 116 Acetate Products 4 24 23 75 Perform ance Products 13 41 10 43 Other Activities * (41) (157) (40) (147) Total 200 95 562 406 Equity Ea rnings a nd Othe r Income /(Ex pe nse) ** Chem ical Products 36 44 22 47 Technical Polym ers Ticona 15 43 13 42 Acetate Products - 2 - 21 Perform ance Products (2) (2) - 1 Other Activities * (2) 8 11 9 Total 46 47 120 95 Othe r Cha rge s a nd Othe r Adjustme nts *** Chem ical Products 19 23 3 10 Technical Polym ers Ticona 4 25 - (4) Acetate Products 9 10 - - Perform ance Products 1 1 - - Other Activities * 7 42 3 35 Total 6 40 41 101 De pre cia tion a nd Amortiza tion Ex pe nse Chem ical Products 45 118 39 118 Technical Polym ers Ticona 13 42 16 48 Acetate Products 3 21 6 18 Perform ance Products 4 10 3 11 Other Activities * 5 9 6 18 Total 70 70 213 200 Ope ra ting EBITDA Chem ical Products 201 621 234 650 Technical Polym ers Ticona 50 172 66 202 Acetate Products 16 57 29 114 Perform ance Products 16 50 13 55 Other Activities * (31) (98) (20) (85) Total 322 252 936 802 * Other Activities primarily includes corporate selling, general and administrative expenses and the results from AT Plastics and captive insurance companies. ** Includes equity earnings from affiliates and other income/(expense), which is primarily dividends from cost investments. *** Excludes adjustments to minority interest, net interest, taxes, depreciation, amortization and discontinued operations. 19