Celanese Corporation Reports Second Quarter 2022 Earnings; Reaffirms Full Year 2022 Outlook

Rhea-AI Summary

Celanese Corporation (NYSE: CE) reported second quarter 2022 GAAP diluted EPS of $4.03 and adjusted EPS of $4.99, with net sales of $2.5 billion, reflecting a 2% decrease from the prior quarter but a 13% increase year-over-year. The company successfully offset supply interruptions and inflation, achieving an operating profit of $483 million. Record sales in Engineered Materials reached $948 million. The firm secured $10.5 billion in financing for the DuPont M&M acquisition. However, they anticipate softening demand and expect adjusted EPS of $4.00 to $4.50 for Q3.

Positive

• Achieved record net sales of $948 million in Engineered Materials.
• Secured $10.5 billion in financing for the DuPont M&M acquisition.
• Generated operating cash flow of $495 million and free cash flow of $368 million in Q2.

Negative

• Net sales decreased by 2% from Q1 2022.
• Volume decreased by 2% and faced a 2% unfavorable currency impact.
• Anticipating softening demand with modest order deferrals in Q3.

DALLAS--(BUSINESS WIRE)-- Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today reported GAAP diluted earnings per share of $4.03 and adjusted earnings per share of $4.99 for the second quarter of 2022. The Company generated net sales of $2.5 billion in the second quarter, a 2 percent decrease from the prior quarter and a 13 percent increase over the same quarter of 2021. Pricing increased 2 percent sequentially, the seventh consecutive quarter of pricing expansion, and partially offset a 2 percent decrease in volume and a 2 percent unfavorable currency impact. Celanese successfully mitigated continued cost inflation as well as unanticipated interruptions in raw material supply in the U.S. Gulf Coast to deliver second quarter consolidated operating profit of $483 million and adjusted EBIT of $646 million. In anticipation of the close of the DuPont M&M acquisition targeted for the fourth quarter of 2022, the Company has secured approximately $10.5 billion in permanent financing for the acquisition across a series of transactions, including two successful registered offerings of senior notes in the third quarter.

"I thank our teams for delivering, across the first half of this year, the strongest six month performance in our history," said Lori Ryerkerk, chairman and chief executive officer. "Their exceptional execution of our business models and M&A action plan, including securing financing for the M&M acquisition amid a challenging market backdrop, has prepared us to address, from a position of strength, some of the developing macro concerns."

Second Quarter 2022 Financial Highlights:

	Three Months Ended
	June 30, 2022			March 31, 2022			June 30, 2021
	(unaudited)
	(In $ millions, except per share data)
Net Sales
Engineered Materials		948			910			682
Acetate Tow		119			125			138
Acetyl Chain		1,456			1,538			1,409
Intersegment Eliminations		(37	)		(35	)		(31	)
Total		2,486			2,538			2,198
Operating Profit (Loss)
Engineered Materials		166			124			123
Acetate Tow		(1	)		4			24
Acetyl Chain		429			499			516
Other Activities		(111	)		(96	)		(96	)
Total		483			531			567
Net Earnings (Loss)		436			504			540
Adjusted EBIT(1)
Engineered Materials		224			211			161
Acetate Tow		35			40			62
Acetyl Chain		440			503			514
Other Activities		(53	)		(41	)		(46	)
Total		646			713			691
Equity Earnings and Dividend Income, Other Income (Expense)
Engineered Materials		53			49			32
Acetate Tow		36			36			37
Operating EBITDA(1)		744			813			781
Diluted EPS - continuing operations	$	4.03		$	4.61		$	4.81
Diluted EPS - total	$	3.98		$	4.61		$	4.77
Adjusted EPS(1)	$	4.99		$	5.54		$	5.02
Net cash provided by (used in) investing activities		(136	)		(149	)		177
Net cash provided by (used in) financing activities		(159	)		(95	)		(344	)
Net cash provided by (used in) operating activities		495			316			427
Free cash flow(1)		368			175			309

______________________________

(1)

See "Non-US GAAP Financial Measures" below.

Recent Highlights:

• Generated second highest-ever quarterly GAAP operating profit and highest-ever adjusted EBIT in Engineered Materials in the second quarter.

• Completed a registered offering of $7.5 billion principal amount of U.S. dollar-denominated notes priced on July 7 and a registered offering of €1.5 billion principal amount of euro-denominated notes priced on July 12 for financing the M&M acquisition. Concurrently entered into a euro cross-currency swap to effectively convert $2.5 billion of the U.S. dollar-denominated debt into euro-denominated borrowing, which lowered the effective borrowing rate and will help to align currency mix with anticipated global earnings.

• Mitigated unanticipated interruptions in raw material supply in the U.S. Gulf Coast and subsequent declaration of force majeure across Acetyl Chain products to exceed second quarter earnings guidance for that business.

Second Quarter 2022 Business Segment Overview

Engineered Materials

Engineered Materials generated record net sales of $948 million in the second quarter due to a sequential price increase of 6 percent and volume increase of 1 percent that offset a 3 percent unfavorable currency impact. The business delivered sequential volume growth by offsetting a decline in global auto builds through commercial wins from the pipeline model, growth in electric vehicle applications, and initial contributions from restructuring KEPCO to a manufacturing joint venture. Engineered Materials reported the sixth consecutive quarter of pricing expansion through the energy surcharge, improved product mix, and other commercial actions that fully offset additional cost inflation in the quarter. The energy surcharge implemented by the business in the fourth quarter of 2021 continued to successfully mitigate the impact of sequential energy inflation in Europe and the Americas. Engineered Materials delivered second highest-ever quarterly GAAP operating profit of $166 million and highest-ever quarterly adjusted EBIT of $224 million, increases over the prior quarter of $42 million and $13 million, respectively. Affiliate earnings contributed an additional $4 million sequentially, as strong performance at Ibn Sina offset the impact of the KEPCO restructuring.

Acetyl Chain

The Acetyl Chain generated second quarter net sales of $1.5 billion, a sequential decline of 5 percent due to a 3 percent decrease in volume and a 2 percent unfavorable currency impact. Volume declined sequentially primarily due to production losses at the Clear Lake, Texas facility as a result of supply disruptions from the two largest external raw material suppliers to that site. The disruption was resolved and the Acetyl Chain is currently operating its Clear Lake facility at full operating rates. In response to the disruption and the subsequent declaration of force majeure, the business immediately sourced product in the market and diverted significant volume produced in Asia to Europe. The business continued to leverage the optionality of its integrated product chain to capture value from products downstream of acetic acid and set a record for variable margin contribution from these products. The Acetyl Chain delivered second quarter GAAP operating profit of $429 million and adjusted EBIT of $440 million at margins of 29 percent and 30 percent, respectively. For the second consecutive quarter, the Acetyl Chain has delivered $2 billion in GAAP operating profit and adjusted EBIT in the trailing 12 month period.

Acetate Tow

Acetate Tow generated net sales of $119 million during the second quarter, which reflected a sequential volume decrease of 6 percent and stable pricing. Second quarter GAAP operating loss was $1 million and adjusted EBIT was $35 million. Dividends from affiliates in the quarter were $36 million. The Company initiated a strategic overhaul of the Acetate Tow business and will begin a transition to managing acetate flake and tow within the Acetyl Chain as downstream derivatives of acetic acid.

Cash Flow and Tax

The Company delivered operating cash flow of $495 million and free cash flow of $368 million in the second quarter. Capital expenditures in the second quarter were $124 million as the Company progressed on several key projects. Celanese returned $74 million in cash to shareholders via dividends in the quarter.

The effective U.S. GAAP tax rate was 20 percent for the second quarter compared to 18 percent for the same quarter of 2021. The higher effective tax rate was primarily due to changes in jurisdictional earnings mix. The effective tax rate for adjusted earnings remains at 13 percent based on expected jurisdictional earnings mix for the full year and projected utilization of foreign tax credit carryforwards.

Outlook

"At this stage, the third quarter order books look largely as expected, with some indications of softening demand including modest order deferrals and signals of normalizing inventory levels at customers," said Lori Ryerkerk. "While we see little firsthand indications that support a view of dramatic demand deterioration, we are taking controllable actions across the organization to prepare ourselves to continue to generate strong cash flow and to swiftly pay down debt balances following the close of the M&M acquisition. In the third quarter, we expect adjusted earnings of $4.00 to $4.50 per share, with performance at the bottom end of the range reflective of the potential for additional modest demand softening as we progress through the quarter. Short of a sharp deterioration in demand, which we do not currently foresee, we expect to deliver 2022 adjusted earnings per share approximately in line with our 2021 adjusted earnings per share performance."

A reconciliation of forecasted adjusted earnings per share to U.S. GAAP diluted earnings per share is not available without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains/losses, is not practical. For more information, see "Non-GAAP Financial Measures" below.

The Company's prepared remarks related to the second quarter will be posted on its website at investors.celanese.com under Financial Information/Financial Document Library on July 28, 2022. Information about Non-US GAAP measures is included in a Non-US GAAP Financial Measures and Supplemental Information document posted on our investor relations website under Financial Information/Non-GAAP Financial Measures. See also "Non-GAAP Financial Measures" below.

Celanese Corporation is a global chemical leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Our businesses use the full breadth of Celanese's global chemistry, technology and commercial expertise to create value for our customers, employees, shareholders and the corporation. As we partner with our customers to solve their most critical business needs, we strive to make a positive impact on our communities and the world through The Celanese Foundation. Based in Dallas, Celanese employs approximately 8,500 employees worldwide and had 2021 net sales of $8.5 billion. For more information about Celanese Corporation and its product offerings, visit www.celanese.com.

Forward-Looking Statements

This release may contain "forward-looking statements," which include information concerning the Company's plans, objectives, goals, strategies, future revenues or performance, capital expenditures, financing needs and other information that is not historical information. 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; volatility or changes in the price and availability of raw materials and energy, particularly changes in the demand for, supply of, and market prices of ethylene, methanol, natural gas, wood pulp and fuel oil and the prices for electricity and other energy sources; the length and depth of product and industry business cycles, particularly in the automotive, electrical, mobility, textiles, medical, electronics and construction industries; the extent to which resurgences or variants of COVID-19 may adversely impact the economic environment, market demand, our operations, availability and cost of transportation and materials, the labor supply and pace of economic recovery; the ability to pass increases in raw material prices, logistics costs and other costs on to customers or otherwise improve margins through price increases; the ability to complete the pending acquisition by us of the majority of DuPont’s Mobility & Materials business (the "M&M Acquisition"), including the possibility that the M&M Acquisition is not completed within the expected timeframe, or at all, because required regulatory approvals are not received or other closing conditions are not satisfied on a timely basis, or at all; the accuracy or inaccuracy of our assumptions regarding anticipated benefits of the M&M Acquisition; the possibility that the anticipated benefits of the M&M Acquisition, including synergies and growth opportunities, may not be realized as expected or may not be achieved within the anticipated timeframe, or at all, whether as a result of difficulties arising from the integration of the M&M Business or other unanticipated delays, costs, inefficiencies or liabilities; increased commercial, legal or regulatory complexity of entering into, or expanding our exposure to, certain end markets and geographies; risks in the global economy and equity and credit markets and their potential impact on our ability to finance the remainder of the purchase price for the M&M Acquisition on acceptable terms, at favorable pricing, in a timely manner, or at all; diversion of management's attention from ongoing business operations and opportunities and other disruption caused by the M&M Acquisition and the integration processes and their impact on our existing business and relationships; risks and costs associated with increased leverage from the M&M Acquisition, including increased interest expense and potential reduction of business and strategic flexibility; the ability to maintain plant utilization rates and to implement planned capacity additions and expansions as well as facility turnarounds; the ability to reduce or maintain their current levels of production costs and to improve productivity by implementing technological improvements to existing plants; the ability to identify desirable potential acquisition targets and to complete and integrate acquisition or investment transactions, including regulatory approvals, consistent with the Company's strategy; increased price competition and the introduction of competing products by other companies; market acceptance of our products and technology; compliance and other costs and potential disruption or interruption of production or operations due to accidents, interruptions in sources of raw materials, transportation logistics or supply chain disruptions, cyber security incidents, terrorism or political unrest, public health crises (including, but not limited to, the COVID-19 pandemic); other unforeseen events or delays in construction or operation of facilities, including as a result of geopolitical conditions, the occurrence of acts of war (such as the Russia-Ukraine conflict) or terrorist incidents or as a result of weather or natural disasters or other crises including public health crises; the ability to obtain governmental approvals and to construct facilities on terms and schedules acceptable to the Company; changes in applicable tariffs, duties and trade agreements, tax rates or legislation throughout the world including, but not limited to, adjustments, changes in estimates or interpretations or the resolution of tax examinations or audits that may impact recorded or future tax impacts and potential regulatory and legislative tax developments in the United States and other jurisdictions; changes in the degree of intellectual property and other legal protection afforded to our products or technologies, or the theft of such intellectual property; potential liability for remedial actions and increased costs under existing or future environmental, health and safety regulations, including those relating to climate change; potential liability resulting from pending or future claims or litigation, including investigations or enforcement actions, 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; our level of indebtedness, which could diminish our ability to raise additional capital to fund operations or limit our ability to react to changes in the economy or the chemicals industry; tax rates and changes thereto; our ability to obtain regulatory approval for, and satisfy closing conditions to, any transactions described herein; 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.

Non-GAAP Financial Measures

Presentation

This document presents the Company's three business segments, Engineered Materials, Acetate Tow and Acetyl Chain.

Use of Non-US GAAP Financial Information

This release uses the following Non-US GAAP measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA, adjusted earnings per share and free cash flow. These measures are not recognized in accordance with US GAAP and should not be viewed as an alternative to US GAAP measures of performance or liquidity. The most directly comparable financial measure presented in accordance with US GAAP in our consolidated financial statements for adjusted EBIT and operating EBITDA is net earnings (loss) attributable to Celanese Corporation; for adjusted EBIT margin is operating margin; for adjusted earnings per share is earnings (loss) from continuing operations attributable to Celanese Corporation per common share-diluted; and for free cash flow is net cash provided by (used in) operations.

Definitions of Non-US GAAP Financial Measures

• Adjusted EBIT is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense and taxes, and further adjusted for Certain Items (refer to Table 8 of our Non-US GAAP Financial Measures and Supplemental Information document). We do not provide reconciliations for adjusted EBIT on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Adjusted EBIT margin is defined by the Company as adjusted EBIT divided by net sales.

• Operating EBITDA is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense, taxes and depreciation and amortization, and further adjusted for Certain Items, which Certain Items include accelerated depreciation and amortization expense. Operating EBITDA is equal to adjusted EBIT plus depreciation and amortization.

• Adjusted earnings per share is a performance measure used by the Company and is defined by the Company as earnings (loss) from continuing operations attributable to Celanese Corporation, adjusted for income tax (provision) benefit, Certain Items, and refinancing and related expenses, divided by the number of basic common shares and dilutive restricted stock units and stock options calculated using the treasury method. We do not provide reconciliations for adjusted earnings per share on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information.

Note: The income tax expense (benefit) on Certain Items ("Non-GAAP adjustments") is determined using the applicable rates in the taxing jurisdictions in which the Non-GAAP adjustments occurred and includes both current and deferred income tax expense (benefit). The income tax rate used for adjusted earnings per share approximates the midpoint in a range of forecasted tax rates for the year. This range may include certain partial or full-year forecasted tax opportunities and related costs, where applicable, and specifically excludes changes in uncertain tax positions, discrete recognition of GAAP items on a quarterly basis, other pre-tax items adjusted out of our GAAP earnings for adjusted earnings per share purposes and changes in management's assessments regarding the ability to realize deferred tax assets for GAAP. In determining the adjusted earnings per share tax rate, we reflect the impact of foreign tax credits when utilized, or expected to be utilized, absent discrete events impacting the timing of foreign tax credit utilization. We analyze this rate quarterly and adjust it if there is a material change in the range of forecasted tax rates; an updated forecast would not necessarily result in a change to our tax rate used for adjusted earnings per share. The adjusted tax rate is an estimate and may differ from the actual tax rate used for GAAP reporting in any given reporting period. Table 3a of our Non-US GAAP Financial Measures and Supplemental Information document summarizes the reconciliation of our estimated GAAP effective tax rate to the adjusted tax rate. The estimated GAAP rate excludes discrete recognition of GAAP items due to our inability to forecast such items. As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate to the adjusted tax rate for actual results.

• Free cash flow is a liquidity measure used by the Company and is defined by the Company as cash flow from operations, less capital expenditures on property, plant and equipment, and adjusted for capital contributions from or distributions to Mitsui & Co., Ltd. ("Mitsui") related to our methanol joint venture, Fairway Methanol LLC ("Fairway").

Reconciliation of Non-US GAAP Financial Measures

Reconciliations of the Non-US GAAP financial measures used in this press release to the comparable US GAAP financial measure, together with information about the purposes and uses of Non-US GAAP financial measures, are included in our Non-US GAAP Financial Measures and Supplemental Information document filed as an exhibit to our Current Report on Form 8-K filed with the SEC on or about July 28, 2022 and also available on our website at investors.celanese.com under Financial Information/Financial Document Library.

Results Unaudited

The results in this document, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management. 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.

Supplemental Information

Additional information about our prior period performance is included in our Quarterly Reports on Form 10-Q and in our Non-US GAAP Financial Measures and Supplemental Information document.

Consolidated Statements of Operations - Unaudited

	Three Months Ended
	June 30, 2022		March 31, 2022		June 30, 2021
	(In $ millions, except share and per share data)
Net sales	2,486		2,538		2,198
Cost of sales	(1,781	)	(1,793	)	(1,437	)
Gross profit	705		745		761
Selling, general and administrative expenses	(197	)	(174	)	(161	)
Amortization of intangible assets	(11	)	(11	)	(5	)
Research and development expenses	(26	)	(24	)	(22	)
Other (charges) gains, net	1		(1	)	(3	)
Foreign exchange gain (loss), net	(1	)	(1	)	(3	)
Gain (loss) on disposition of businesses and assets, net	12		(3	)	—
Operating profit (loss)	483		531		567
Equity in net earnings (loss) of affiliates	60		56		37
Non-operating pension and other postretirement employee benefit (expense) income	25		24		38
Interest expense	(48	)	(35	)	(24	)
Interest income	1		1		4
Dividend income - equity investments	36		37		37
Other income (expense), net	(3	)	2		1
Earnings (loss) from continuing operations before tax	554		616		660
Income tax (provision) benefit	(112	)	(112	)	(116	)
Earnings (loss) from continuing operations	442		504		544
Earnings (loss) from operation of discontinued operations	(8	)	—		(6	)
Income tax (provision) benefit from discontinued operations	2		—		2
Earnings (loss) from discontinued operations	(6	)	—		(4	)
Net earnings (loss)	436		504		540
Net (earnings) loss attributable to noncontrolling interests	(2	)	(2	)	(2	)
Net earnings (loss) attributable to Celanese Corporation	434		502		538
Amounts attributable to Celanese Corporation
Earnings (loss) from continuing operations	440		502		542
Earnings (loss) from discontinued operations	(6	)	—		(4	)
Net earnings (loss)	434		502		538
Earnings (loss) per common share - basic
Continuing operations	4.06		4.64		4.83
Discontinued operations	(0.06	)	—		(0.04	)
Net earnings (loss) - basic	4.00		4.64		4.79
Earnings (loss) per common share - diluted
Continuing operations	4.03		4.61		4.81
Discontinued operations	(0.05	)	—		(0.04	)
Net earnings (loss) - diluted	3.98		4.61		4.77
Weighted average shares (in millions)
Basic	108.4		108.2		112.3
Diluted	109.1		108.9		112.8

Consolidated Balance Sheets - Unaudited

	As of June 30, 2022		As of December 31, 2021
	(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents	783		536
Trade receivables - third party and affiliates, net	1,317		1,161
Non-trade receivables, net	510		506
Inventories	1,713		1,524
Marketable securities	7		10
Other assets	129		70
Total current assets	4,459		3,807
Investments in affiliates	935		823
Property, plant and equipment, net	4,158		4,193
Operating lease right-of-use assets	264		236
Deferred income taxes	232		248
Other assets	642		521
Goodwill	1,348		1,412
Intangible assets, net	675		735
Total assets	12,713		11,975
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current installments of long-term debt - third party and affiliates	809		791
Trade payables - third party and affiliates	1,250		1,160
Other liabilities	419		473
Income taxes payable	117		81
Total current liabilities	2,595		2,505
Long-term debt, net of unamortized deferred financing costs	3,022		3,176
Deferred income taxes	589		555
Uncertain tax positions	285		280
Benefit obligations	514		558
Operating lease liabilities	220		200
Other liabilities	263		164
Commitments and Contingencies
Stockholders' Equity
Treasury stock, at cost	(5,492	)	(5,492	)
Additional paid-in capital	344		333
Retained earnings	10,466		9,677
Accumulated other comprehensive income (loss), net	(438	)	(329	)
Total Celanese Corporation stockholders' equity	4,880		4,189
Noncontrolling interests	345		348
Total equity	5,225		4,537
Total liabilities and equity	12,713		11,975

Non-US GAAP Financial Measures and Supplemental Information

July 28, 2022

In this document, the terms the "Company," "we" and "our" refer to Celanese Corporation and its subsidiaries on a consolidated basis.

Purpose

The purpose of this document is to provide information of interest to investors, analysts and other parties including supplemental financial information and reconciliations and other information concerning our use of non-US GAAP financial measures. This document is updated quarterly.

Presentation

This document presents the Company's three business segments, Engineered Materials, Acetate Tow and Acetyl Chain.

Use of Non-US GAAP Financial Measures

From time to time, management may publicly disclose certain numerical "non-GAAP financial measures" in the course of our earnings releases, financial presentations, earnings conference calls, investor and analyst meetings and otherwise. For these purposes, the Securities and Exchange Commission ("SEC") defines a "non-GAAP financial measure" as a numerical measure of historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that effectively exclude amounts, included in the most directly comparable measure calculated and presented in accordance with US GAAP, and vice versa for measures that include amounts, or are subject to adjustments that effectively include amounts, that are excluded from the most directly comparable US GAAP measure so calculated and presented. For these purposes, "GAAP" refers to generally accepted accounting principles in the United States.

Non-GAAP financial measures disclosed by management are provided as additional information to investors, analysts and other parties because the Company believes them to be important supplemental measures for assessing our financial and operating results and as a means to evaluate our financial condition and period-to-period comparisons. These non-GAAP financial measures should be viewed as supplemental to, and should not be considered in isolation or as alternatives to, net earnings (loss), operating profit (loss), operating margin, cash flow from operating activities (together with cash flow from investing and financing activities), earnings per share or any other US GAAP financial measure. These non-GAAP financial measures should be considered within the context of our complete audited and unaudited financial results for the given period, which are available on the Financial Information/Financial Document Library page of our website, investors.celanese.com. The definition and method of calculation of the non-GAAP financial measures used herein may be different from other companies' methods for calculating measures with the same or similar titles. Investors, analysts and other parties should understand how another company calculates such non-GAAP financial measures before comparing the other company's non-GAAP financial measures to any of our own. These non-GAAP financial measures may not be indicative of the historical operating results of the Company nor are they intended to be predictive or projections of future results.

Pursuant to the requirements of SEC Regulation G, whenever we refer to a non-GAAP financial measure, we will also present in this document, in the presentation itself or on a Form 8-K in connection with the presentation on the Financial Information/Financial Document Library page of our website, investors.celanese.com, to the extent practicable, the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure.

This document includes definitions and reconciliations of non-GAAP financial measures used from time to time by the Company.

Specific Measures Used

This document provides information about the following non-GAAP measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA, operating EBITDA margin, operating profit (loss) attributable to Celanese Corporation, adjusted earnings per share, net debt, free cash flow and return on invested capital (adjusted). The most directly comparable financial measure presented in accordance with US GAAP in our consolidated financial statements for adjusted EBIT and operating EBITDA is net earnings (loss) attributable to Celanese Corporation; for adjusted EBIT margin and operating EBITDA margin is operating margin; for operating profit (loss) attributable to Celanese Corporation is operating profit (loss); for adjusted earnings per share is earnings (loss) from continuing operations attributable to Celanese Corporation per common share-diluted; for net debt is total debt; for free cash flow is net cash provided by (used in) operations; and for return on invested capital (adjusted) is net earnings (loss) attributable to Celanese Corporation divided by the sum of the average of beginning and end of the year short- and long-term debt and Celanese Corporation stockholders' equity.

Definitions

• Adjusted EBIT is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense and taxes, and further adjusted for Certain Items (refer to Table 8). We believe that adjusted EBIT provides transparent and useful information to management, investors, analysts and other parties in evaluating and assessing our primary operating results from period-to-period after removing the impact of unusual, non-operational or restructuring-related activities that affect comparability. Our management recognizes that adjusted EBIT has inherent limitations because of the excluded items. Adjusted EBIT is one of the measures management uses for planning and budgeting, monitoring and evaluating financial and operating results and as a performance metric in the Company's incentive compensation plan. We do not provide reconciliations for adjusted EBIT on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Adjusted EBIT margin is defined by the Company as adjusted EBIT divided by net sales. Adjusted EBIT margin has the same uses and limitations as Adjusted EBIT.

• Operating EBITDA is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense, taxes and depreciation and amortization, and further adjusted for Certain Items, which Certain Items include accelerated depreciation and amortization expense. Operating EBITDA is equal to adjusted EBIT plus depreciation and amortization. We believe that Operating EBITDA provides transparent and useful information to investors, analysts and other parties in evaluating our operating performance relative to our peer companies. Operating EBITDA margin is defined by the Company as Operating EBITDA divided by net sales. Operating EBITDA margin has the same uses and limitations as Operating EBITDA.

• Operating profit (loss) attributable to Celanese Corporation is defined by the Company as operating profit (loss), less earnings (loss) attributable to noncontrolling interests ("NCI"). We believe that operating profit (loss) attributable to Celanese Corporation provides transparent and useful information to management, investors, analysts and other parties in evaluating our core operational performance. Operating margin attributable to Celanese Corporation is defined by the Company as operating profit (loss) attributable to Celanese Corporation divided by net sales. Operating margin attributable to Celanese Corporation has the same uses and limitations as Operating profit (loss) attributable to Celanese Corporation.

• Adjusted earnings per share is a performance measure used by the Company and is defined by the Company as earnings (loss) from continuing operations attributable to Celanese Corporation, adjusted for income tax (provision) benefit, Certain Items, and refinancing and related expenses, divided by the number of basic common shares and dilutive restricted stock units and stock options calculated using the treasury method. We believe that adjusted earnings per share provides transparent and useful information to management, investors, analysts and other parties in evaluating and assessing our primary operating results from period-to-period after removing the impact of the above stated items that affect comparability and as a performance metric in the Company's incentive compensation plan. We do not provide reconciliations for adjusted earnings per share on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information.

Note: The income tax expense (benefit) on Certain Items ("Non-GAAP adjustments") is determined using the applicable rates in the taxing jurisdictions in which the Non-GAAP adjustments occurred and includes both current and deferred income tax expense (benefit). The income tax rate used for adjusted earnings per share approximates the midpoint in a range of forecasted tax rates for the year. This range may include certain partial or full-year forecasted tax opportunities and related costs, where applicable, and specifically excludes changes in uncertain tax positions, discrete recognition of GAAP items on a quarterly basis, other pre-tax items adjusted out of our GAAP earnings for adjusted earnings per share purposes and changes in management's assessments regarding the ability to realize deferred tax assets for GAAP. In determining the adjusted earnings per share tax rate, we reflect the impact of foreign tax credits when utilized, or expected to be utilized, absent discrete events impacting the timing of foreign tax credit utilization. We analyze this rate quarterly and adjust it if there is a material change in the range of forecasted tax rates; an updated forecast would not necessarily result in a change to our tax rate used for adjusted earnings per share. The adjusted tax rate is an estimate and may differ from the actual tax rate used for GAAP reporting in any given reporting period. Table 3a summarizes the reconciliation of our estimated GAAP effective tax rate to the adjusted tax rate. The estimated GAAP rate excludes discrete recognition of GAAP items due to our inability to forecast such items. As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate to the adjusted tax rate for actual results.

• Free cash flow is a liquidity measure used by the Company and is defined by the Company as net cash provided by (used in) operations, less capital expenditures on property, plant and equipment, and adjusted for capital contributions from or distributions to Mitsui & Co., Ltd. ("Mitsui") related to our methanol joint venture, Fairway Methanol LLC ("Fairway"). We believe that free cash flow provides useful information to management, investors, analysts and other parties in evaluating the Company's liquidity and credit quality assessment because it provides an indication of the long-term cash generating ability of our business. Although we use free cash flow as a measure to assess the liquidity generated by our business, the use of free cash flow has important limitations, including that free cash flow does not reflect the cash requirements necessary to service our indebtedness, lease obligations, unconditional purchase obligations or pension and postretirement funding obligations. Free cash flow is not a measure of cash available for discretionary expenditures since the Company has certain debt service and finance lease payments that are not deducted from that measure.

• Net debt is defined by the Company as total debt less cash and cash equivalents. We believe that net debt provides useful information to management, investors, analysts and other parties in evaluating changes to the Company's capital structure and credit quality assessment.

• Return on invested capital (adjusted) is defined by the Company as adjusted EBIT, tax effected using the adjusted tax rate, divided by the sum of the average of beginning and end of the year short- and long-term debt and Celanese Corporation stockholders' equity. We believe that return on invested capital (adjusted) provides useful information to management, investors, analysts and other parties in order to assess our income generation from the point of view of our stockholders and creditors who provide us with capital in the form of equity and debt and whether capital invested in the Company yields competitive returns.

Supplemental Information

Supplemental Information we believe to be of interest to investors, analysts and other parties includes the following:

• Net sales for each of our business segments and the percentage increase or decrease in net sales attributable to price, volume, currency and other factors for each of our business segments.

• Cash dividends received from our equity investments.

• For those consolidated ventures in which the Company owns or is exposed to less than 100% of the economics, the outside stockholders' interests are shown as NCI. Beginning in 2014, this includes Fairway for which the Company's ownership percentage is 50%. Amounts referred to as "attributable to Celanese Corporation" are net of any applicable NCI.

Results Unaudited

The results in this document, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management. 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.

Table 1
Adjusted EBIT and Operating EBITDA - Reconciliation of Non-GAAP Measures - Unaudited
	Q2 '22			Q1 '22			2021			Q4 '21			Q3 '21			Q2 '21			Q1 '21
	(In $ millions)
Net earnings (loss) attributable to Celanese Corporation	434			502			1,890			524			506			538			322
(Earnings) loss from discontinued operations	6			—			22			4			13			4			1
Interest income	(1	)		(1	)		(8	)		(1	)		(2	)		(4	)		(1	)
Interest expense	48			35			91			21			21			24			25
Refinancing expense	—			—			9			—			9			—			—
Income tax provision (benefit)	112			112			330			27			102			116			85
Certain Items attributable to Celanese Corporation (Table 8)	47			65			139			77			(1	)		13			50
Adjusted EBIT	646			713			2,473			652			648			691			482
Depreciation and amortization expense(1)	98			100			362			93			91			90			88
Operating EBITDA	744			813			2,835			745			739			781			570
	Q2 '22			Q1 '22			2021			Q4 '21			Q3 '21			Q2 '21			Q1 '21
	(In $ millions)
Engineered Materials	4			4			9			4			2			1			2
Acetate Tow	—			—			—			—			—			—			—
Acetyl Chain	—			2			—			—			—			—			—
Other Activities(2)	1			—			—			—			—			—			—
Accelerated depreciation and amortization expense	5			6			9			4			2			1			2
Depreciation and amortization expense(1)	98			100			362			93			91			90			88
Total depreciation and amortization expense	103			106			371			97			93			91			90

______________________________

(1)		Excludes accelerated depreciation and amortization expense as detailed in the table above, which amounts are included in Certain Items above.
(2)		Other Activities includes corporate Selling, general and administrative ("SG&A") expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses).

Table 2 - Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited
	Q2 '22						Q1 '22						2021						Q4 '21						Q3 '21						Q2 '21						Q1 '21
	(In $ millions, except percentages)
Operating Profit (Loss) / Operating Margin
Engineered Materials	166			17.5	%		124			13.6	%		411			15.1	%		67			9.5	%		91			13.3	%		123			18.0	%		130			20.2	%
Acetate Tow	(1	)		(0.8	)%		4			3.2	%		56			10.9	%		4			3.1	%		12			9.4	%		24			17.4	%		16			13.4	%
Acetyl Chain(1)	429			29.5	%		499			32.4	%		1,819			33.5	%		535			36.2	%		517			34.7	%		516			36.6	%		251			23.8	%
Other Activities(2)	(111	)					(96	)					(340	)					(89	)					(84	)					(96	)					(71	)
Total	483			19.4	%		531			20.9	%		1,946			22.8	%		517			22.7	%		536			23.7	%		567			25.8	%		326			18.1	%
Less: Net Earnings (Loss) Attributable to NCI(1)	2						2						6						2						1						2						1
Operating Profit (Loss) Attributable to Celanese Corporation	481			19.3	%		529			20.8	%		1,940			22.7	%		515			22.6	%		535			23.6	%		565			25.7	%		325			18.1	%
Operating Profit (Loss) / Operating Margin Attributable to Celanese Corporation
Engineered Materials	166			17.5	%		124			13.6	%		411			15.1	%		67			9.5	%		91			13.3	%		123			18.0	%		130			20.2	%
Acetate Tow	(1	)		(0.8	)%		4			3.2	%		56			10.9	%		4			3.1	%		12			9.4	%		24			17.4	%		16			13.4	%
Acetyl Chain(1)	427			29.3	%		497			32.3	%		1,813			33.4	%		533			36.1	%		516			34.7	%		514			36.5	%		250			23.7	%
Other Activities(2)	(111	)					(96	)					(340	)					(89	)					(84	)					(96	)					(71	)
Total	481			19.3	%		529			20.8	%		1,940			22.7	%		515			22.6	%		535			23.6	%		565			25.7	%		325			18.1	%
Equity Earnings and Dividend Income, Other Income (Expense) Attributable to Celanese Corporation
Engineered Materials	53						49						127						30						40	(3)					32						25
Acetate Tow	36						36						146						34						34						37						41
Acetyl Chain	3						4						8						2						2						2						2
Other Activities(2)	1						6						7						1						1						4						1
Total	93						95						288						67						77						75						69
Non-Operating Pension and Other Post-Retirement Employee Benefit (Expense) Income Attributable to Celanese Corporation
Engineered Materials	—						—						—						—						—						—						—
Acetate Tow	—						—						—						—						—						—						—
Acetyl Chain	—						—						—						—						—						—						—
Other Activities(2)	25						24						106						(7	)					37						38						38
Total	25						24						106						(7	)					37						38						38
Certain Items Attributable to Celanese Corporation (Table 8)
Engineered Materials	5						38						33						16						6						6						5
Acetate Tow	—						—						5						—						—						1						4
Acetyl Chain	10						2						28						1						(1	)					(2	)					30
Other Activities(2)	32						25						73						60						(6	)					8						11
Total	47						65						139						77						(1	)					13						50

___________________________

(1)		Net earnings (loss) attributable to NCI is included within the Acetyl Chain segment.
(2)		Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses).
(3)		Includes $39 million of Equity in net earnings (loss) of affiliates and $1 million of Other income.

Table 2 - Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited (cont.)
	Q2 '22						Q1 '22						2021						Q4 '21						Q3 '21						Q2 '21						Q1 '21
	(In $ millions, except percentages)
Adjusted EBIT / Adjusted EBIT Margin
Engineered Materials	224			23.6	%		211			23.2	%		571			21.0	%		113			16.0	%		137			20.0	%		161			23.6	%		160			24.8	%
Acetate Tow	35			29.4	%		40			32.0	%		207			40.3	%		38			29.5	%		46			35.9	%		62			44.9	%		61			51.3	%
Acetyl Chain	440			30.2	%		503			32.7	%		1,849			34.1	%		536			36.3	%		517			34.7	%		514			36.5	%		282			26.7	%
Other Activities(2)	(53	)					(41	)					(154	)					(35	)					(52	)					(46	)					(21	)
Total	646			26.0	%		713			28.1	%		2,473			29.0	%		652			28.7	%		648			28.6	%		691			31.4	%		482			26.8	%
Depreciation and Amortization Expense(1)
Engineered Materials	41						42						135						35						33						34						33
Acetate Tow	10						11						39						10						10						9						10
Acetyl Chain	42						43						171						43						44						43						41
Other Activities(2)	5						4						17						5						4						4						4
Total	98						100						362						93						91						90						88
Operating EBITDA / Operating EBITDA Margin
Engineered Materials	265			28.0	%		253			27.8	%		706			26.0	%		148			20.9	%		170			24.9	%		195			28.6	%		193			29.9	%
Acetate Tow	45			37.8	%		51			40.8	%		246			47.9	%		48			37.2	%		56			43.8	%		71			51.4	%		71			59.7	%
Acetyl Chain	482			33.1	%		546			35.5	%		2,020			37.2	%		579			39.2	%		561			37.7	%		557			39.5	%		323			30.6	%
Other Activities(2)	(48	)					(37	)					(137	)					(30	)					(48	)					(42	)					(17	)
Total	744			29.9	%		813			32.0	%		2,835			33.2	%		745			32.7	%		739			32.6	%		781			35.5	%		570			31.7	%

___________________________

(1)		Excludes accelerated depreciation and amortization expense, which amounts are included in Certain Items above. See Table 1 for details.
(2)		Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses).

Table 3
Adjusted Earnings (Loss) per Share - Reconciliation of a Non-GAAP Measure - Unaudited
	Q2 '22						Q1 '22						2021					Q4 '21					Q3 '21					Q2 '21					Q1 '21
				per share						per share						per share					per share					per share					per share					per share
	(In $ millions, except per share data)
Earnings (loss) from continuing operations attributable to Celanese Corporation	440			4.03			502			4.61			1,912			17.06		528			4.83		519			4.67		542			4.81		323			2.83
Income tax provision (benefit)	112						112						330					27					102					116					85
Earnings (loss) from continuing operations before tax	552						614						2,242					555					621					658					408
Certain Items attributable to Celanese Corporation (Table 8)	47						65						139					77					(1	)				13					50
Refinancing and related expenses	26	(1)					14	(1)					9					—					9					—					—
Adjusted earnings (loss) from continuing operations before tax	625						693						2,390					632					629					671					458
Income tax (provision) benefit on adjusted earnings(2)	(81	)					(90	)					(359	)				(95	)				(94	)				(105	)				(64	)
Adjusted earnings (loss) from continuing operations(3)	544			4.99			603			5.54			2,031			18.12		537			4.91		535			4.82		566			5.02		394			3.46
	Diluted shares (in millions)(4)
Weighted average shares outstanding	108.4						108.2						111.2					108.6					110.5					112.3					113.5
Incremental shares attributable to equity awards	0.7						0.7						0.9					0.8					0.5					0.5					0.5
Total diluted shares	109.1						108.9						112.1					109.4					111.0					112.8					114.0

______________________________

(1)		Includes interest expense for fees related to a bridge facility commitment letter for our acquisition of a majority of the Mobility & Materials business of DuPont de Nemours, Inc.
(2)		Calculated using adjusted effective tax rates (Table 3a) as follows:

	Q2 '22				Q1 '22				2021				Q4 '21				Q3 '21				Q2 '21				Q1 '21
Adjusted effective tax rate	13				13				15				15				15				16				14

(3)

Excludes the immediate recognition of actuarial gains and losses and the impact of actual vs. expected plan asset returns.

		Actual Plan Asset Returns		Expected Plan Asset Returns
		(In percentages)
2021		1.1		6.3

(4)

Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.

Table 3a
Adjusted Tax Rate - Reconciliation of a Non-GAAP Measure - Unaudited
	Estimated			Actual
	2022			2021
	(In percentages)
US GAAP annual effective tax rate	19			15
Discrete quarterly recognition of GAAP items(1)	(1	)		(2	)
Tax impact of other charges and adjustments(2)	(4	)		(1	)
Utilization of foreign tax credits	—			(1	)
Changes in valuation allowances, excluding impact of other charges and adjustments(3)	—			3
Other(4)	(1	)		1
Adjusted tax rate	13			15

______________________________

Note: As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate for actual results.
(1)		Such as changes in tax laws (including US tax reform), deferred taxes on outside basis differences, changes in uncertain tax positions and prior year audit adjustments.
(2)		Reflects the tax impact on pre-tax adjustments presented in Certain Items (Table 8), which are excluded from pre-tax income for adjusted earnings per share purposes.
(3)		Reflects changes in valuation allowances related to changes in judgment regarding the realizability of deferred tax assets or current year operations, excluding other charges and adjustments.
(4)		Tax impacts related to full-year forecasted tax opportunities and related costs.

Table 4
Net Sales by Segment - Unaudited
	Q2 '22			Q1 '22			2021			Q4 '21			Q3 '21			Q2 '21			Q1 '21
	(In $ millions)
Engineered Materials	948			910			2,718			707			684			682			645
Acetate Tow	119			125			514			129			128			138			119
Acetyl Chain	1,456			1,538			5,430			1,476			1,489			1,409			1,056
Other Activities	—			—			—			—			—			—			—
Intersegment eliminations(1)	(37	)		(35	)		(125	)		(37	)		(35	)		(31	)		(22	)
Net sales	2,486			2,538			8,537			2,275			2,266			2,198			1,798

___________________________

(1)

Includes intersegment sales primarily related to the Acetyl Chain.

Table 4a
Factors Affecting Segment Net Sales Sequentially - Unaudited
Three Months Ended June 30, 2022 Compared to Three Months Ended March 31, 2022
	Volume			Price		Currency			Other		Total
	(In percentages)
Engineered Materials	1			6		(3	)		—		4
Acetate Tow	(6	)		1		—			—		(5	)
Acetyl Chain	(3	)		—		(2	)		—		(5	)
Total Company	(2	)		2		(2	)		—		(2	)

Three Months Ended March 31, 2022 Compared to Three Months Ended December 31, 2021
	Volume			Price			Currency			Other		Total
	(In percentages)
Engineered Materials	23			7			(1	)		—		29
Acetate Tow	(6	)		3			—			—		(3	)
Acetyl Chain	8			(3	)		(1	)		—		4
Total Company	12			1			(1	)		—		12

Three Months Ended December 31, 2021 Compared to Three Months Ended September 30, 2021
	Volume			Price		Currency			Other		Total
	(In percentages)
Engineered Materials	(1	)		5		(1	)		—		3	(1)
Acetate Tow	—			1		—			—		1
Acetyl Chain	(10	)		10		(1	)		—		(1	)
Total Company	(7	)		8		(1	)		—		—

Three Months Ended September 30, 2021 Compared to Three Months Ended June 30, 2021
	Volume			Price		Currency			Other		Total
	(In percentages)
Engineered Materials	(2	)		3		(1	)		—		—
Acetate Tow	(8	)		—		—			—		(8	)
Acetyl Chain	3			3		—			—		6
Total Company	1			3		(1	)		—		3

________________________

(1)

2021 includes the effect of the acquisition of the Santoprene™ thermoplastic vulcanizates elastomers business.

Three Months Ended June 30, 2021 Compared to Three Months Ended March 31, 2021
	Volume			Price		Currency		Other		Total
	(In percentages)
Engineered Materials	(1	)		7		—		—		6
Acetate Tow	16			—		—		—		16
Acetyl Chain	7			27		—		—		34
Total Company	4			18		—		—		22

Three Months Ended March 31, 2021 Compared to Three Months Ended December 31, 2020
	Volume			Price			Currency		Other		Total
	(In percentages)
Engineered Materials	6			6			1		—		13
Acetate Tow	(10	)		(1	)		—		—		(11	)
Acetyl Chain	(7	)		23			—		—		16
Total Company	(3	)		15			1		—		13

Table 4b
Factors Affecting Segment Net Sales Year Over Year - Unaudited
Three Months Ended June 30, 2022 Compared to Three Months Ended June 30, 2021
	Volume			Price		Currency			Other		Total
	(In percentages)
Engineered Materials	24			24		(9	)		—		39
Acetate Tow	(18	)		4		—			—		(14	)
Acetyl Chain	(4	)		10		(3	)		—		3
Total Company	3			14		(4	)		—		13

Three Months Ended March 31, 2022 Compared to Three Months Ended March 31, 2021
	Volume		Price		Currency			Other			Total
	(In percentages)
Engineered Materials	20		25		(4	)		—			41
Acetate Tow	1		4		—			—			5
Acetyl Chain	8		39		(1	)		—			46
Total Company	12		32		(2	)		(1	)		41

Three Months Ended December 31, 2021 Compared to Three Months Ended December 31, 2020
	Volume			Price			Currency			Other		Total
	(In percentages)
Engineered Materials	5			20			(1	)		—		24
Acetate Tow	(3	)		(1	)		—			—		(4	)
Acetyl Chain	(6	)		68			—			—		62
Total Company	(2	)		46			(1	)		—		43

Three Months Ended September 30, 2021 Compared to Three Months Ended September 30, 2020
	Volume		Price			Currency		Other		Total
	(In percentages)
Engineered Materials	11		17			2		—		30
Acetate Tow	—		(2	)		—		1		(1	)
Acetyl Chain	11		80			1		—		92
Total Company	10		50			1		—		61

Three Months Ended June 30, 2021 Compared to Three Months Ended June 30, 2020
	Volume		Price			Currency		Other			Total
	(In percentages)
Engineered Materials	43		11			8		—			62
Acetate Tow	10		(1	)		—		—			9
Acetyl Chain	27		83			3		—			113
Total Company	31		50			4		(1	)		84

Three Months Ended March 31, 2021 Compared to Three Months Ended March 31, 2020
	Volume			Price		Currency		Other		Total
	(In percentages)
Engineered Materials	7			2		6		—		15
Acetate Tow	(8	)		—		—		—		(8	)
Acetyl Chain	5			25		2		—		32
Total Company	5			14		4		—		23

Table 4c Factors Affecting Segment Net Sales Year Over Year - Unaudited Year Ended December 31, 2021 Compared to Year Ended December 31, 2020
	Volume		Price			Currency		Other		Total
	(In percentages)
Engineered Materials	15		12			4		—		31
Acetate Tow	—		(1	)		—		—		(1	)
Acetyl Chain	9		62			2		—		73
Total Company	10		39			2		—		51

Table 5
Free Cash Flow - Reconciliation of a Non-GAAP Measure - Unaudited
	Q2 '22			Q1 '22			2021			Q4 '21			Q3 '21			Q2 '21			Q1 '21
	(In $ millions, except percentages)
Net cash provided by (used in) investing activities	(136	)		(149	)		(1,119	)		(1,286	)		(108	)		177			98
Net cash provided by (used in) financing activities	(159	)		(95	)		(1,042	)		(99	)		(228	)		(344	)		(371	)
Net cash provided by (used in) operating activities	495			316			1,757			584			630			427			116
Capital expenditures on property, plant and equipment	(124	)		(137	)		(467	)		(163	)		(102	)		(110	)		(92	)
Distributions to NCI	(3	)		(4	)		(27	)		(6	)		(8	)		(8	)		(5	)
Free cash flow(1)(2)	368			175			1,263			415			520			309			19
Net sales	2,486			2,538			8,537			2,275			2,266			2,198			1,798
Free cash flow as % of Net sales	14.8	%		6.9	%		14.8	%		18.2	%		22.9	%		14.1	%		1.1	%

______________________________

(1)

Free cash flow is a liquidity measure used by the Company and is defined by the Company as net cash provided by (used in) operating activities, less capital expenditures on property, plant and equipment, and adjusted for capital contributions or distributions to Mitsui related to our joint venture, Fairway.

Table 6
Cash Dividends Received - Unaudited
	Q2 '22		Q1 '22		2021		Q4 '21		Q3 '21		Q2 '21		Q1 '21
	(In $ millions)
Dividends from equity method investments	82		26		112		51		8		18		35
Dividends from equity investments without readily determinable fair values	36		37		147		33		35		37		42
Total	118		63		259		84		43		55		77

Table 7
Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited
	Q2 '22			Q1 '22			2021			Q4 '21			Q3 '21			Q2 '21			Q1 '21
	(In $ millions)
Short-term borrowings and current installments of long-term debt - third party and affiliates	809			860			791			791			103			500			497
Long-term debt, net of unamortized deferred financing costs	3,022			3,132			3,176			3,176			3,724			3,156			3,135
Total debt	3,831			3,992			3,967			3,967			3,827			3,656			3,632
Cash and cash equivalents	(783	)		(605	)		(536	)		(536	)		(1,340	)		(1,054	)		(791	)
Net debt	3,048			3,387			3,431			3,431			2,487			2,602			2,841

Table 8
Certain Items - Unaudited
The following Certain Items attributable to Celanese Corporation are included in Net earnings (loss) and are adjustments to non-GAAP measures:
	Q2 '22			Q1 '22		2021			Q4 '21		Q3 '21				Q2 '21		Q1 '21			Income Statement Classification
	(In $ millions)
Exit and shutdown costs	29			7		18			8		7				5		(2	)		Cost of sales / SG&A / Other (charges) gains, net / Gain (loss) on disposition of businesses and assets, net / Non-operating pension and other postretirement employee benefit (expense) income
Asset impairments	(1	)		—		2			—		—				1		1			Cost of sales / Other (charges) gains, net
Impact from plant incidents and natural disasters(1)	—			—		41			—		—				—		41			Cost of sales
Mergers, acquisitions and dispositions	29			56		29			19		4				6		—			Cost of sales / SG&A
Actuarial (gain) loss on pension and postretirement plans	—			—		43			43		—				—		—			Cost of sales / SG&A / Non-operating pension and other postretirement employee benefit (expense) income
Legal settlements and commercial disputes	—			2		16			4		2				1		9			Cost of sales / SG&A / Other (charges) gains, net
Other	(10	)		—		(10	)		3		(14	)	(2)		—		1			Cost of sales / SG&A / Gain (loss) on disposition of businesses and assets, net
Certain Items attributable to Celanese Corporation	47			65		139			77		(1	)			13		50

___________________________

(1)		Primarily associated with Winter Storm Uri.
(2)		Primarily associated with the sale of our Spondon site.

Table 9
Return on Invested Capital (Adjusted) - Presentation of a Non-GAAP Measure - Unaudited
					2021
					(In $ millions, except percentages)
Net earnings (loss) attributable to Celanese Corporation					1,890
Adjusted EBIT (Table 1)					2,473
Adjusted effective tax rate (Table 3a)					15	%
Adjusted EBIT tax effected					2,102
	2021		2020		Average
	(In $ millions, except percentages)
Short-term borrowings and current installments of long-term debt - third parties and affiliates	791		496		644
Long-term debt, net of unamortized deferred financing costs	3,176		3,227		3,202
Celanese Corporation stockholders' equity	4,189		3,526		3,858
Invested capital					7,704
Return on invested capital (adjusted)					27.3	%
Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital					24.5	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220727005796/en/

Investor Relations

Brandon Ayache

Phone: +1 972 443 8509

brandon.ayache@celanese.com



Media - U.S.

Brian Bianco

Phone: +1 972 443 4400

media@celanese.com



Media - Europe

Petra Czugler

Phone: +49 69 45009 1206

petra.czugler@celanese.com

Source: Celanese Corporation

FAQ

What were Celanese's earnings results for Q2 2022?

Celanese reported GAAP diluted EPS of $4.03 and adjusted EPS of $4.99 for Q2 2022.

How did Celanese perform compared to Q2 2021?

Celanese's net sales increased by 13% from Q2 2021.

What is the outlook for Celanese in Q3 2022?

Celanese expects adjusted EPS of $4.00 to $4.50, with potential for softening demand.

How did the M&M acquisition financing impact Celanese?

Celanese secured $10.5 billion in financing, strengthening its position for the M&M acquisition.