Celanese Outlines 2020 Growth Strategy and Capital Deployment Plans at Investor Day - Seite 2

Engineered Materials is expected to deliver an annualized adjusted EBIT increase of about 15 percent from 2017 through 2020 with adjusted EBIT reaching $900 million by 2020.

Acetate Tow: Steady Performance and Optionality

Sutton will also provide an overview of stabilizing industry dynamics in the acetate tow market. Ongoing productivity, innovation initiatives, and higher dividends from Chinese affiliates in the Acetate Tow business will lead to consistent earnings going forward, offsetting any further declines in industry utilization. Celanese continues to have optionality for the Acetate Tow business, with multiple potential strategic pathways to unlock value.

Celanese expects annual adjusted EBIT in Acetate Tow to remain stable through 2020.

Acetyl Chain: Fundamentals & Growth

Todd Elliott, Senior Vice President, Acetyl Chain, will discuss Celanese’s ability to leverage its position as the industry’s most flexible and most integrated global producer to generate a step change in EBIT generation within the business. Favorable demand and supply dynamics along with structural reforms in China are improving utilization rates globally. The Acetyl Chain is best positioned to leverage these trends to drive both volume and margin uplift. A combination of enhanced network flexibility, targeted debottlenecking projects, strategic alliances, and potential significant capacity additions over the long-term position the business for robust growth.

The Acetyl Chain is expected to deliver an annual adjusted EBIT increase of greater than 16 percent from 2017 through 2020 with adjusted EBIT surpassing $900 million by 2020.

Financial Strategy: The Power of Financial Stewardship

Scott Richardson, Chief Financial Officer, will discuss Celanese’s capital stewardship model, capital allocation priorities, and industry-leading shareholder returns. Free cash flow will be invested in organic and inorganic opportunities along with returning cash to shareholders.

Value creation in EM and AC, reinforced by compelling shifts in market conditions and trends, will drive double-digit adjusted earnings expansion through 2020. Together, these contributions along with capital deployment are expected to increase adjusted earnings to at least $11.00 per share by 2020, representing a compound annual growth rate of 14% for the three-year period. The company expects to generate approximately $3.2 billion in free cash flow from 2018 to 2020, and to utilize approximately one-third of this to invest in organic projects and acquisition opportunities. Celanese expects to return $2 billion to shareholders via dividends and share repurchases from 2018 to 2020.