Celanese Corporation Reports Third Quarter Earnings; Expects to Deliver 2017 Results at Higher End of Outlook

Mon, October 16 2017

DALLAS--(BUSINESS WIRE)-- Celanese Corporation (NYSE: CE), a global technology and specialty materials company, today reported third quarter 2017 GAAP diluted earnings per share of $1.68, second-highest for a third quarter, and adjusted earnings per share of $1.93, an all-time record. Net sales expanded 18 percent year over year to $1.6 billion. A combination of commercial execution in the Acetyl Chain, extension of the pipeline model in Materials Solutions, and broad productivity gains more than offset the expected declines in tow earnings to deliver robust results. The Acetyl Chain grew profitability by exercising the optionality in its commercial model to overcome the disruption from Hurricane Harvey. Advanced Engineered Materials (AEM) grew project commercializations across regions in both legacy and acquired polymers.

Third Quarter 2017 Financial Highlights:

			Three Months Ended September 30,
			2017				2016
			(unaudited)
			(In $ millions)
Operating Profit (Loss)
Advanced Engineered Materials			97				93
Consumer Specialties			53				68
Total Materials Solutions			150				161
Industrial Specialties			20				25
Acetyl Intermediates			128				83
Eliminations			—				—
Total Acetyl Chain			148				108
Other Activities			(46	)			(23	)
Total			252				246

			Three Months Ended September 30,
			2017					2016
			(unaudited)
			(In $ millions, except per share data)
Net Earnings (Loss)				228					263
Adjusted EBIT(1)(2)
Advanced Engineered Materials				147					127
Consumer Specialties				79					98
Total Materials Solutions				226					225
Industrial Specialties				23					25
Acetyl Intermediates				134					84
Eliminations				—					—
Total Acetyl Chain				157					109
Other Activities				(38	)				(15	)
Total				345					319
Equity Earnings, Cost-Dividend Income, Other Income (Expense)
Advanced Engineered Materials				45					33
Consumer Specialties				26					27
Total Materials Solutions				71					60
Operating EBITDA(1)				423					390
Diluted EPS - continuing operations			$	1.68				$	1.83
Diluted EPS - total			$	1.65				$	1.81
Adjusted EPS(1)			$	1.93				$	1.67
Net cash provided by (used in) investing activities				(68	)				(54	)
Net cash provided by (used in) financing activities				(247	)				265
Net cash provided by (used in) operating activities				255					304
Free cash flow(1)				181					237

______________________________
(1)		See "Non-US GAAP Financial Measures" below.
(2)		The Company's discussion of adjusted earnings includes use of terms such as "segment income" and "core income." Those non-GAAP terms are defined below and reconciled in our Non-US GAAP Financial Measures and Supplemental Information document referenced below.

Third Quarter 2017 Highlights:

• Completed de-bottlenecking projects over the last year that increased output by 10 percent per unit for select POM, UHMW-PE, PPS and PBT assets in the US, Germany, and China.
• Announced plans to add production lines in the US, Italy and China to expand compounding capacity by roughly 100 kt per year. The expansion will be completed in 2018-2019 and will support demand growth across end-market applications.
• Commercialized a record 585 projects in the third quarter of 2017, a 67 percent increase from third quarter of 2016, in engineered materials (AEM excluding affiliates). Increased target for projects closed in 2017 to above 2,100, up 52 percent from 2016.
• Completed the SAP system integration of Nilit Plastics, a major milestone towards full integration into Celanese.
• Advanced on the previously announced 150 kt expansion of vinyl acetate monomer at the Clear Lake, Texas facility. This expansion, expected to be commissioned at the end of 2018, will raise plant capacity to 450 kt making it the largest VAM plant in the western hemisphere.
• Filed for regulatory approval of the tow joint venture with Blackstone in all six jurisdictions and received approval in Mexico. The European Commission is expected to continue its assessment with a final decision expected in spring 2018.

Third Quarter 2017 Business Segment Overview

Materials Solutions

Materials Solutions reported record net sales of $730 million in the third quarter, a 24 percent increase year over year driven by growth in Advanced Engineered Materials that outpaced the decline in Consumer Specialties. AEM delivered its highest ever third quarter GAAP operating profit of $97 million and highest ever segment income of $147 million. There is strong receptivity for Celanese's customer-centric approach coupled with the breadth of polymer solutions which continues to strengthen AEM's growth profile. The segment set a new watermark of advancing 585 projects to commercialization in the quarter by expanding the opportunity set and improving its win-rate. Volume in the third quarter of 2017 grew over last year mainly from the Nilit and SO.F.TER. acquisitions, growth in Asia and new projects. As expected, the addition of the Nilit and SO.F.TER. acquisitions along with higher indirect costs from Hurricane Harvey lowered GAAP operating profit margin and segment income margin year over year. Both acquisitions were segment income accretive in the quarter and their margin is expected to improve over the next few years as synergies are realized.

Acetate tow volume and price in the third quarter declined compared to the same quarter in 2016 due to lower tow industry capacity utilization rates and offset improvements in productivity. Results were consistent sequentially.

Affiliate earnings in Materials Solutions increased 18 percent year over year to $71 million mainly due to the impact of the Ibn Sina turnaround in the third quarter of 2016 which did not repeat in 2017.

Acetyl Chain

The Acetyl Chain GAAP operating profit of $148 million in the third quarter was $40 million higher than the third quarter of 2016 while core income of $157 million was $48 million higher. Profitability grew despite operational and supply chain disruptions in the Gulf Coast caused by Hurricane Harvey. The chain responded by swiftly executing contingency plans to minimize impact and quickly restore operations. Pricing was higher than the third quarter of last year driven by the success of commercial actions mainly in Asia as well as continued strength in global acetyls. Margin expansion in the chain was driven by the Acetyl Intermediates segment which recorded GAAP operating margin of 18.7 percent and segment income margin of 19.6 percent, both all time records. Results in the quarter highlight the chain's business model which leverages volatility in the global acetyl supply chain to maximize profitability.

Cash Flow

Operating cash flow in the third quarter was $255 million and free cash flow was $181 million. Capital expenditures were $64 million in the quarter. The company repurchased approximately 2 million shares for $200 million in the quarter and $500 million total for the year. $262 million of cash was returned to shareholders in the quarter including $62 million in dividends.

Outlook

"Success in the third quarter and for most of 2017 has come from our ability to rapidly translate changes in the business environment into new value creation opportunities through our business models. In Advanced Engineered Materials, the disciplined approach to innovation through the pipeline model has raised profits and provided a road map for accelerating value uplift from the SO.F.TER. and Nilit acquisitions. The Acetyl Chain is expected to maintain its commercial traction in the quarter and additional initiatives are in place to take advantage of the gradual strengthening of the market. There is business and productivity momentum that should offset fourth quarter weakness. This combination gives confidence we can grow 2017 adjusted earnings per share toward the higher end of the 9-11 percent range, year over year," said Mark Rohr, chairman and chief executive officer.

We are unable to reconcile forecasted adjusted earnings per share growth to US GAAP diluted earnings per share without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains/losses, is not practical.

The Company's earnings presentation and prepared remarks related to the third quarter results will be posted on its website at www.celanese.com under Investor Relations/Events and Presentations after market close on October 16, 2017. Information about Non-US GAAP measures is included in a Non-US GAAP Financial Measures and Supplemental Information document posted on the website and available at the link below. See "Non-GAAP Financial Measures" below.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Our two complementary business cores, Acetyl Chain and Materials Solutions, use the full breadth of Celanese's global chemistry, technology and business expertise to create value for our customers 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 7,500 employees worldwide and had 2016 net sales of $5.4 billion. For more information about Celanese Corporation and its product offerings, visit www.celanese.com or our blog at www.celaneseblog.com.

Forward-Looking Statements

This release may contain "forward-looking statements," which include information concerning the Company's plans, objectives, goals, strategies, future revenues, synergies, 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, including the announced joint venture transaction. 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, including with respect to the joint venture. These risks and uncertainties include, among other things: changes in general economic, business, political and regulatory conditions in the countries or regions in which we operate; the length and depth of product and industry business cycles, particularly in the automotive, electrical, textiles, electronics and construction industries; changes in the price and availability of raw materials, 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 ability to pass increases in raw material prices on to customers or otherwise improve margins through price increases; the ability to maintain plant utilization rates and to implement planned capacity additions and expansions; the ability to reduce or maintain 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 consummate acquisition or investment transactions consistent with the Company's strategy; increased price competition and the introduction of competing products by other companies; market acceptance of our technology; the ability to obtain governmental approvals and to construct facilities on terms and schedules acceptable to the Company; changes in the degree of intellectual property and other legal protection afforded to our products or technologies, or the theft of such intellectual property; compliance and other costs and potential disruption or interruption of production or operations due to accidents, interruptions in sources of raw materials, cyber security incidents, terrorism or political unrest or other unforeseen events or delays in construction or operation of facilities, including as a result of geopolitical conditions, the occurrence of acts of war or terrorist incidents or as a result of weather or natural disasters; potential liability for remedial actions and increased costs under existing or future environmental regulations, including those relating to climate change; potential liability resulting from pending or future litigation, or from changes in the laws, regulations or policies of governments or other governmental activities in the countries in which we operate; changes in currency exchange rates and interest rates; 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; 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 business segments in two subtotals, reflecting our two cores, the Acetyl Chain and Materials Solutions, based on similarities among customers, business models and technical processes. As described in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q, the Acetyl Chain includes the Company's Acetyl Intermediates segment and the Industrial Specialties segment. Materials Solutions includes the Company's Advanced Engineered Materials segment and the Consumer Specialties segment.

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 may provide guidance on adjusted EBIT but are unable to reconcile forecasted adjusted EBIT to a US GAAP financial measure without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains and losses, which may be significant, is not practical. Adjusted EBIT margin is defined by the Company as adjusted EBIT divided by net sales.
• Adjusted EBIT by core (i.e., Acetyl Chain and/or Materials Solutions) may also be referred to by management as core income. Adjusted EBIT margin by core may also be referred to by management as core income margin. Adjusted EBIT by business segment may also be referred to by management as segment income. Adjusted EBIT margin by business segment may also be referred to by management as segment income margin.
• 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 may provide guidance on adjusted earnings per share but are unable to reconcile forecasted adjusted earnings per share to a US GAAP financial measure without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains and losses, which may be significant, is not practical.
  
  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 October 16, 2017 and also available on our website at www.celanese.com under Financial Information, Non-GAAP Financial Measures, or at this link: http://investors.celanese.com/interactive/lookandfeel/4103411/Non-GAAP.PDF.

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 September 30,
			2017				2016
			(In $ millions, except share and per share data)
Net sales			1,566				1,323
Cost of sales			(1,181	)			(968	)
Gross profit			385				355
Selling, general and administrative expenses			(112	)			(81	)
Amortization of intangible assets			(5	)			(3	)
Research and development expenses			(19	)			(20	)
Other (charges) gains, net			—				(3	)
Foreign exchange gain (loss), net			4				(1	)
Gain (loss) on disposition of businesses and assets, net			(1	)			(1	)
Operating profit (loss)			252				246
Equity in net earnings (loss) of affiliates			50				41
Interest expense			(32	)			(28	)
Refinancing expense			—				(4	)
Interest income			1				—
Dividend income - cost investments			24				26
Other income (expense), net			(6	)			—
Earnings (loss) from continuing operations before tax			289				281
Income tax (provision) benefit			(57	)			(15	)
Earnings (loss) from continuing operations			232				266
Earnings (loss) from operation of discontinued operations			(5	)			(4	)
Income tax (provision) benefit from discontinued operations			1				1
Earnings (loss) from discontinued operations			(4	)			(3	)
Net earnings (loss)			228				263
Net (earnings) loss attributable to noncontrolling interests			(2	)			(1	)
Net earnings (loss) attributable to Celanese Corporation			226				262
Amounts attributable to Celanese Corporation
Earnings (loss) from continuing operations			230				265
Earnings (loss) from discontinued operations			(4	)			(3	)
Net earnings (loss)			226				262
Earnings (loss) per common share - basic
Continuing operations			1.68				1.84
Discontinued operations			(0.03	)			(0.02	)
Net earnings (loss) - basic			1.65				1.82
Earnings (loss) per common share - diluted
Continuing operations			1.68				1.83
Discontinued operations			(0.03	)			(0.02	)
Net earnings (loss) - diluted			1.65				1.81
Weighted average shares (in millions)
Basic			136.6				144.0
Diluted			137.0				144.6

Consolidated Balance Sheets - Unaudited
			As of September 30, 2017				As of December 31, 2016
			(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents			461				638
Trade receivables - third party and affiliates, net			989				801
Non-trade receivables, net			260				223
Inventories			809				720
Marketable securities, at fair value			31				30
Other assets			63				60
Total current assets			2,613				2,472
Investments in affiliates			938				852
Property, plant and equipment, net			3,706				3,577
Deferred income taxes			201				159
Other assets			306				307
Goodwill			995				796
Intangible assets, net			303				194
Total assets			9,062				8,357
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current installments of long-term debt - third party and affiliates			435				118
Trade payables - third party and affiliates			695				625
Other liabilities			343				322
Income taxes payable			77				12
Total current liabilities			1,550				1,077
Long-term debt, net of unamortized deferred financing costs			2,954				2,890
Deferred income taxes			195				130
Uncertain tax positions			153				131
Benefit obligations			845				893
Other liabilities			230				215
Commitments and Contingencies
Stockholders' Equity
Preferred stock			—				—
Common stock			—				—
Treasury stock, at cost			(2,031	)			(1,531	)
Additional paid-in capital			171				157
Retained earnings			4,781				4,320
Accumulated other comprehensive income (loss), net			(206	)			(358	)
Total Celanese Corporation stockholders' equity			2,715				2,588
Noncontrolling interests			420				433
Total equity			3,135				3,021
Total liabilities and equity			9,062				8,357

Non-US GAAP Financial Measures and Supplemental Information

October 16, 2017

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 business segments in two subtotals, reflecting our two cores, the Acetyl Chain and Materials Solutions, based on similarities among customers, business models and technical processes. As described in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q, the Acetyl Chain includes the Company's Acetyl Intermediates segment and the Industrial Specialties segment. Materials Solutions includes the Company's Advanced Engineered Materials segment and the Consumer Specialties segment.

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 Investor Relations/Financial Information/SEC Filings page of our website, www.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 Investor Relations/Financial Information/Non-GAAP Financial Measures page of our website, www.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 may provide guidance on adjusted EBIT but are unable to reconcile forecasted adjusted EBIT to a US GAAP financial measure without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains and losses, which may be significant, is not practical. 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.
• Adjusted EBIT by core (i.e. Acetyl Chain and/or Materials Solutions) may also be referred to by management as core income. Adjusted EBIT margin by core may also be referred to by management as core income margin. Adjusted EBIT by business segment may also be referred to by management as segment income. Adjusted EBIT margin by business segment may also be referred to by management as segment income margin.
• 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 may provide guidance on adjusted earnings per share but are unable to reconcile forecasted adjusted earnings per share to a GAAP financial measure without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains and losses, which may be significant, is not practical.
  
  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.
• 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. In addition, achievement of certain predetermined targets relating to return on invested capital (adjusted) is one of the factors we consider in determining the amount of performance-based compensation received by our management.

Supplemental Information

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

• Net sales for Materials Solutions, the Acetyl Chain and each of our business segments and the percentage increase or decrease in net sales attributable to price, volume, currency and other factors for Materials Solutions, the Acetyl Chain and each of our business segments.
• Cash dividends received from our equity and cost 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
			Q3 '17				Q2 '17				Q1 '17				2016				Q4 '16				Q3 '16				Q2 '16				Q1 '16
			(In $ millions)
Net earnings (loss) attributable to Celanese Corporation			226				231				183				900				160				262				221				257
(Earnings) loss from discontinued operations			4				8				—				2				—				3				—				(1	)
Interest income			(1	)			(1	)			—				(2	)			(1	)			—				—				(1	)
Interest expense			32				30				29				120				29				28				30				33
Refinancing expense			—				—				—				6				—				4				—				2
Income tax provision (benefit)			57				40				56				122				(5	)			15				52				60
Certain Items attributable to Celanese Corporation (Table 8)			27				18				65				130				106				7				9				8
Adjusted EBIT			345				326				333				1,278				289				319				312				358
Depreciation and amortization expense(1)			78				75				71				288				71				71				73				73
Operating EBITDA			423				401				404				1,566				360				390				385				431
			Q3 '17				Q2 '17				Q1 '17				2016				Q4 '16				Q3 '16				Q2 '16				Q1 '16
			(In $ millions)
Advanced Engineered Materials			—				—				—				—				—				—				—				—
Consumer Specialties			—				—				—				1				—				1				—				—
Industrial Specialties			2				—				—				—				—				—				—				—
Acetyl Intermediates			—				—				—				—				—				—				—				—
Other Activities(2)			—				—				—				1				1				—				—				—
Accelerated depreciation and amortization expense			2				—				—				2				1				1				—				—
Depreciation and amortization expense(1)			78				75				71				288				71				71				73				73
Total depreciation and amortization expense			80				75				71				290				72				72				73				73

______________________________
(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
			Q3 '17								Q2 '17								Q1 '17								2016								Q4 '16								Q3 '16								Q2 '16								Q1 '16
			(In $ millions, except percentages)
Operating Profit (Loss) / Operating Margin
Materials Solutions			150				20.5	%			146				20.6	%			166				23.5	%			652				27.5	%			163				27.7	%			161				27.3	%			162				27.0	%			166				27.9	%
Acetyl Chain(1)			148				17.1	%			135				16.3	%			52				6.5	%			446				14.2	%			86				11.5	%			108				14.2	%			107				13.7	%			145				17.3	%
Other Activities(2)			(46	)							(41	)							(26	)							(205	)							(132	)							(23	)							(26	)							(24	)
Total			252				16.1	%			240				15.9	%			192				13.1	%			893				16.6	%			117				8.9	%			246				18.6	%			243				18.0	%			287				20.4	%
Less: Net Earnings (Loss) Attributable to NCI(1)			2								2								1								6								1								1								2								2
Operating Profit (Loss) Attributable to Celanese Corporation			250				16.0	%			238				15.8	%			191				13.0	%			887				16.5	%			116				8.8	%			245				18.5	%			241				17.8	%			285				20.3	%
Operating Profit (Loss) / Operating Margin Attributable to Celanese Corporation
Advanced Engineered Materials			97				17.9	%			97				18.8	%			98				20.1	%			350				24.2	%			87				23.9	%			93				25.5	%			82				22.5	%			88				25.1	%
Consumer Specialties			53				28.3	%			49				25.4	%			68				31.2	%			302				32.5	%			76				33.8	%			68				30.2	%			80				34.0	%			78				32.0	%
Total Materials Solutions			150				20.5	%			146				20.6	%			166				23.5	%			652				27.5	%			163				27.7	%			161				27.3	%			162				27.0	%			166				27.9	%
Industrial Specialties			20				7.6	%			26				9.9	%			25				10.2	%			105				10.7	%			20				9.1	%			25				10.2	%			29				11.1	%			31				12.3	%
Acetyl Intermediates(1)			126				18.4	%			107				16.5	%			26				4.2	%			334				13.7	%			65				10.9	%			82				13.9	%			75				12.7	%			112				16.9	%
Eliminations			—								—								—								1								—								—								1								—
Total Acetyl Chain			146				16.9	%			133				16.1	%			51				6.4	%			440				14.0	%			85				11.3	%			107				14.0	%			105				13.5	%			143				17.0	%
Other Activities(2)			(46	)							(41	)							(26	)							(205	)							(132	)							(23	)							(26	)							(24	)
Total			250				16.0	%			238				15.8	%			191				13.0	%			887				16.5	%			116				8.8	%			245				18.5	%			241				17.8	%			285				20.3	%
Equity Earnings, Cost-Dividend Income, Other Income (Expense) Attributable to Celanese Corporation
Advanced Engineered Materials			45								38								42								122								31								33								27								31
Consumer Specialties			26								28								30								110								27								27								28								28
Total Materials Solutions			71								66								72								232								58								60								55								59
Industrial Specialties			—								—								—								—								—								—								—								—
Acetyl Intermediates			1								2								1								7								2								1								2								2
Total Acetyl Chain			1								2								1								7								2								1								2								2
Other Activities(2)			(4	)							2								4								22								7								6								5								4
Total			68								70								77								261								67								67								62								65
Certain Items Attributable to Celanese Corporation (Table 8)
Advanced Engineered Materials			5								7								3								7								3								1								2								1
Consumer Specialties			—								2								2								6								3								3								—								—
Total Materials Solutions			5								9								5								13								6								4								2								1
Industrial Specialties			3								—								—								1								(2	)							—								1								2
Acetyl Intermediates			7								(3	)							56								6								1								1								3								1
Total Acetyl Chain			10								(3	)							56								7								(1	)							1								4								3
Other Activities(2)			12								12								4								110								101								2								3								4
Total			27								18								65								130								106								7								9								8
Adjusted EBIT / Adjusted EBIT Margin
Advanced Engineered Materials			147				27.1	%			142				27.5	%			143				29.4	%			479				33.2	%			121				33.2	%			127				34.8	%			111				30.4	%			120				34.3	%
Consumer Specialties			79				42.2	%			79				40.9	%			100				45.9	%			418				45.0	%			106				47.1	%			98				43.6	%			108				46.0	%			106				43.4	%
Total Materials Solutions			226				31.0	%			221				31.2	%			243				34.5	%			897				37.8	%			227				38.5	%			225				38.1	%			219				36.5	%			226				38.0	%
Industrial Specialties			23				8.7	%			26				9.9	%			25				10.2	%			106				10.8	%			18				8.2	%			25				10.2	%			30				11.5	%			33				13.0	%
Acetyl Intermediates			134				19.6	%			106				16.3	%			83				13.4	%			347				14.2	%			68				11.4	%			84				14.3	%			80				13.5	%			115				17.3	%
Eliminations			—								—								—								1								—								—								1								—
Total Acetyl Chain			157				18.2	%			132				16.0	%			108				13.6	%			454				14.5	%			86				11.5	%			109				14.3	%			111				14.2	%			148				17.6	%
Other Activities(2)			(38	)							(27	)							(18	)							(73	)							(24	)							(15	)							(18	)							(16	)
Total			345				22.0	%			326				21.6	%			333				22.6	%			1,278				23.7	%			289				22.0	%			319				24.1	%			312				23.1	%			358				25.5	%

___________________________
(1)		Net earnings (loss) attributable to NCI is included within the Acetyl Intermediates 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).

Table 2 - Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited (cont.)
			Q3 '17						Q2 '17						Q1 '17						2016						Q4 '16						Q3 '16						Q2 '16						Q1 '16
			(In $ millions, except percentages)
Depreciation and Amortization Expense(1)
Advanced Engineered Materials			29						26						24						92						21						22						25						24
Consumer Specialties			11						11						11						44						11						11						11						11
Total Materials Solutions			40						37						35						136						32						33						36						35
Industrial Specialties			8						10						8						34						9						9						8						8
Acetyl Intermediates			26						26						26						107						26						27						27						27
Total Acetyl Chain			34						36						34						141						35						36						35						35
Other Activities(2)			4						2						2						11						4						2						2						3
Total			78						75						71						288						71						71						73						73
Operating EBITDA / Operating EBITDA Margin
Advanced Engineered Materials			176			32.4	%		168			32.6	%		167			34.3	%		571			39.5	%		142			39.0	%		149			40.8	%		136			37.3	%		144			41.1	%
Consumer Specialties			90			48.1	%		90			46.6	%		111			50.9	%		462			49.7	%		117			52.0	%		109			48.4	%		119			50.6	%		117			48.0	%
Total Materials Solutions			266			36.4	%		258			36.4	%		278			39.4	%		1,033			43.5	%		259			44.0	%		258			43.7	%		255			42.5	%		261			43.9	%
Industrial Specialties			31			11.7	%		36			13.7	%		33			13.5	%		140			14.3	%		27			12.3	%		34			13.9	%		38			14.5	%		41			16.2	%
Acetyl Intermediates			160			23.4	%		132			20.3	%		109			17.6	%		454			18.6	%		94			15.7	%		111			18.8	%		107			18.1	%		142			21.4	%
Eliminations			—						—						—						1						—						—						1						—
Total Acetyl Chain			191			22.1	%		168			20.3	%		142			17.9	%		595			19.0	%		121			16.2	%		145			19.0	%		146			18.7	%		183			21.8	%
Other Activities(2)			(34	)					(25	)					(16	)					(62	)					(20	)					(13	)					(16	)					(13	)
Total			423			27.0	%		401			26.6	%		404			27.5	%		1,566			29.1	%		360			27.5	%		390			29.5	%		385			28.5	%		431			30.7	%

___________________________
(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
							Q3 '17				Q2 '17				Q1 '17				2016				Q4 '16				Q3 '16				Q2 '16				Q1 '16
									per				per				per				per				per				per				per				per
									share				share				share				share				share				share				share				share
							(In $ millions, except per share data)
Earnings (loss) from continuing operations attributable to Celanese Corporation							230		1.68		239		1.72		183		1.30		902		6.19		160		1.12		265		1.83		221		1.50		256		1.73
Income tax provision (benefit)							57				40				56				122				(5)				15				52				60
Earnings (loss) from continuing operations before tax							287				279				239				1,024				155				280				273				316
Certain Items attributable to Celanese Corporation (Table 8)							27				18				65				130				106				7				9				8
Refinancing and related expenses							—				—				—				6				—				4				—				2
Adjusted earnings (loss) from continuing operations before tax							314				297				304				1,160				261				291				282				326
Income tax (provision) benefit on adjusted earnings(1)							(50)				(48)				(49)				(197)				(44)				(49)				(48)				(55)
Adjusted earnings (loss) from continuing operations(2)							264		1.93		249		1.79		255		1.81		963		6.61		217		1.52		242		1.67		234		1.59		271		1.83
							Diluted shares (in millions)(3)
Weighted average shares outstanding							136.6				138.6				140.6				144.9				141.9				144.0				146.5				147.4
Incremental shares attributable to equity awards							0.4				0.4				0.4				0.8				0.7				0.6				0.6				0.7
Total diluted shares							137.0				139.0				141.0				145.7				142.6				144.6				147.1				148.1
______________________________
(1) Calculated using adjusted effective tax rates (Table 3a) as follows:
							Q3 '17				Q2 '17				Q1 '17				2016				Q4 '16				Q3 '16				Q2 '16				Q1 '16
							(In percentages)
Adjusted effective tax rate							16				16				16				17				17				17				17				17
(2) Excludes the immediate recognition of actuarial gains and losses and the impact of actual vs. expected plan asset returns.
				Expected
		Actual Plan		Plan Asset
		Asset Returns		Returns
		(In percentages)
2016		6.9		7.3
(3) 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
			2017				2016
			(In percentages)
US GAAP effective tax rate			18				12
Discrete quarterly recognition of GAAP items(1)			(1	)			1
Tax impact of other charges and adjustments(2)			(1	)			3
Utilization of foreign tax credits			—				—
Changes in valuation allowances, excluding impact of other charges and adjustments(3)			—				2
Other(4)			—				(1	)
Adjusted tax rate			16				17

______________________________
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, 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
			Q3 '17			Q2 '17			Q1 '17			2016			Q4 '16			Q3 '16			Q2 '16			Q1 '16
			(In $ millions)
Advanced Engineered Materials			543			516			487			1,444			364			365			365			350
Consumer Specialties			187			193			218			929			225			225			235			244
Total Materials Solutions			730			709			705			2,373			589			590			600			594
Industrial Specialties			264			262			245			979			219			245			262			253
Acetyl Intermediates			684			649			619			2,441			597			589			592			663
Eliminations(1)			(85	)		(85	)		(70	)		(288	)		(67	)		(71	)		(74	)		(76	)
Total Acetyl Chain			863			826			794			3,132			749			763			780			840
Other Activities(2)			—			—			—			—			—			—			—			—
Intersegment eliminations(1)			(27	)		(25	)		(28	)		(116	)		(27	)		(30	)		(29	)		(30	)
Net sales			1,566			1,510			1,471			5,389			1,311			1,323			1,351			1,404
___________________________
(1) Includes intersegment sales as follows:
			Q3 '17			Q2 '17			Q1 '17			2016			Q4 '16			Q3 '16			Q2 '16			Q1 '16
			(In $ millions)
Industrial Specialties			(1	)		(1	)		(1	)		(3	)		(1	)		(1	)		(1	)		—
Acetyl Intermediates			(111	)		(109	)		(97	)		(401	)		(93	)		(100	)		(102	)		(106	)
Intersegment eliminations			(112	)		(110	)		(98	)		(404	)		(94	)		(101	)		(103	)		(106	)
(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 4a
Factors Affecting Segment Net Sales Sequentially - Unaudited
Three Months Ended September 30, 2017 Compared to Three Months Ended June 30, 2017
			Volume				Price				Currency			Other			Total
			(In percentages)
Advanced Engineered Materials			—				2				3			—			5
Consumer Specialties			(4	)			—				1			—			(3	)
Total Materials Solutions			(1	)			1				3			—			3
Industrial Specialties			(4	)			2				3			—			1
Acetyl Intermediates			3				(1	)			3			—			5
Total Acetyl Chain			1				—				3			—			4
Total Company			—				1				3			—			4

Three Months Ended June 30, 2017 Compared to Three Months Ended March 31, 2017
			Volume				Price				Currency			Other				Total
			(In percentages)
Advanced Engineered Materials			4				—				2			—				6			(1)
Consumer Specialties			(10	)			(2	)			—			—				(12	)
Total Materials Solutions			—				(1	)			1			—				—
Industrial Specialties			2				3				2			—				7
Acetyl Intermediates			(1	)			5				1			—				5
Total Acetyl Chain			—				5				1			(2	)			4
Total Company			—				3				1			(1	)			3

Three Months Ended March 31, 2017 Compared to Three Months Ended December 31, 2016
			Volume				Price				Currency				Other			Total
			(In percentages)
Advanced Engineered Materials			35				—				(1	)			—			34			(2)
Consumer Specialties			3				(6	)			—				—			(3	)
Total Materials Solutions			22				(2	)			—				—			20
Industrial Specialties			11				1				—				—			12
Acetyl Intermediates			(2	)			6				—				—			4
Total Acetyl Chain			2				5				(1	)			—			6
Total Company			11				2				(1	)			—			12

___________________________
(1)		2017 includes the effect of the acquisition of the nylon compounding division of Nilit Group.
(2)		2017 includes the effect of the SO.F.TER. S.p.A. acquisition.

Three Months Ended December 31, 2016 Compared to Three Months Ended September 30, 2016
			Volume				Price				Currency				Other			Total
			(In percentages)
Advanced Engineered Materials			1				—				(1	)			—			—
Consumer Specialties			2				(2	)			—				—			—
Total Materials Solutions			2				(1	)			(1	)			—			—
Industrial Specialties			(7	)			(2	)			(2	)			—			(11	)
Acetyl Intermediates			—				2				(1	)			—			1
Total Acetyl Chain			(2	)			1				(2	)			1			(2	)
Total Company			(1	)			1				(1	)			—			(1	)

Three Months Ended September 30, 2016 Compared to Three Months Ended June 30, 2016
			Volume				Price			Currency				Other			Total
			(In percentages)
Advanced Engineered Materials			(1	)			1			—				—			—
Consumer Specialties			(4	)			—			—				—			(4	)
Total Materials Solutions			(2	)			—			—				—			(2	)
Industrial Specialties			(6	)			—			(1	)			—			(7	)
Acetyl Intermediates			—				—			—				—			—
Total Acetyl Chain			(2	)			—			(1	)			1			(2	)
Total Company			(2	)			—			—				—			(2	)

Three Months Ended June 30, 2016 Compared to Three Months Ended March 31, 2016
			Volume				Price				Currency			Other			Total
			(In percentages)
Advanced Engineered Materials			6				(2	)			1			—			5
Consumer Specialties			(3	)			(1	)			—			—			(4	)
Total Materials Solutions			2				(2	)			1			—			1
Industrial Specialties			4				(1	)			1			—			4
Acetyl Intermediates			(11	)			—				—			—			(11	)
Total Acetyl Chain			(7	)			(1	)			1			—			(7	)
Total Company			(4	)			(1	)			1			—			(4	)

Table 4a
Factors Affecting Segment Net Sales Sequentially - Unaudited (cont.)
Three Months Ended March 31, 2016 Compared to Three Months Ended December 31, 2015
			Volume			Price				Currency			Other				Total
			(In percentages)
Advanced Engineered Materials			12			—				—			—				12
Consumer Specialties			6			(7	)			—			—				(1	)
Total Materials Solutions			10			(3	)			—			—				7
Industrial Specialties			9			(3	)			—			—				6
Acetyl Intermediates			7			(4	)			—			—				3
Total Acetyl Chain			8			(4	)			—			(1	)			3
Total Company			9			(4	)			—			—				5

Table 4b
Factors Affecting Segment Net Sales Year Over Year - Unaudited
Three Months Ended September 30, 2017 Compared to Three Months Ended September 30, 2016
			Volume				Price				Currency			Other				Total
			(In percentages)
Advanced Engineered Materials			49				(2	)			2			—				49
Consumer Specialties			(10	)			(8	)			1			—				(17	)
Total Materials Solutions			26				(4	)			2			—				24
Industrial Specialties			2				4				2			—				8
Acetyl Intermediates			(1	)			16				1			—				16
Total Acetyl Chain			—				13				2			(2	)			13
Total Company			11				6				2			(1	)			18

Three Months Ended June 30, 2017 Compared to Three Months Ended June 30, 2016
			Volume				Price				Currency				Other				Total
			(In percentages)
Advanced Engineered Materials			44				(2	)			(1	)			—				41
Consumer Specialties			(9	)			(9	)			—				—				(18	)
Total Materials Solutions			23				(4	)			(1	)			—				18
Industrial Specialties			(1	)			3				(2	)			—				—
Acetyl Intermediates			(4	)			14				(1	)			1				10
Total Acetyl Chain			(3	)			12				(2	)			(1	)			6
Total Company			8				5				(1	)			—				12

Three Months Ended March 31, 2017 Compared to Three Months Ended March 31, 2016
			Volume				Price				Currency				Other			Total
			(In percentages)
Advanced Engineered Materials			44				(3	)			(2	)			—			39
Consumer Specialties			(2	)			(8	)			(1	)			—			(11	)
Total Materials Solutions			25				(5	)			(1	)			—			19
Industrial Specialties			1				(2	)			(2	)			—			(3	)
Acetyl Intermediates			(12	)			7				(2	)			—			(7	)
Total Acetyl Chain			(9	)			5				(2	)			1			(5	)
Total Company			5				1				(2	)			1			5

Three Months Ended December 31, 2016 Compared to Three Months Ended December 31, 2015
			Volume			Price			Currency			Other			Total
			(In percentages)
Advanced Engineered Materials			20			(2)			(1)			—			17
Consumer Specialties			2			(11)			—			—			(9)
Total Materials Solutions			12			(6)			—			—			6
Industrial Specialties			(1)			(6)			(1)			—			(8)
Acetyl Intermediates			(4)			(2)			(2)			1			(7)
Total Acetyl Chain			(4)			(3)			(2)			1			(8)
Total Company			2			(4)			(1)			1			(2)

Three Months Ended September 30, 2016 Compared to Three Months Ended September 30, 2015
			Volume				Price				Currency				Other			Total
			(In percentages)
Advanced Engineered Materials			16				(4	)			—				—			12
Consumer Specialties			(2	)			(7	)			—				—			(9	)
Total Materials Solutions			8				(5	)			—				—			3
Industrial Specialties			(1	)			(9	)			(1	)			—			(11	)
Acetyl Intermediates			(3	)			(11	)			—				1			(13	)
Total Acetyl Chain			(3	)			(12	)			—				2			(13	)
Total Company			1				(9	)			—				2			(6	)

Three Months Ended June 30, 2016 Compared to Three Months Ended June 30, 2015
			Volume				Price				Currency			Other			Total
			(In percentages)
Advanced Engineered Materials			8				(4	)			1			—			5
Consumer Specialties			2				(8	)			—			—			(6	)
Total Materials Solutions			5				(5	)			1			—			1
Industrial Specialties			(1	)			(8	)			—			—			(9	)
Acetyl Intermediates			(5	)			(13	)			—			2			(16	)
Total Acetyl Chain			(4	)			(12	)			—			2			(14	)
Total Company			—				(10	)			—			1			(9	)

Table 4b
Factors Affecting Segment Net Sales Year Over Year - Unaudited (cont.)
Three Months Ended March 31, 2016 Compared to Three Months Ended March 31, 2015
			Volume			Price			Currency			Other			Total
			(In percentages)
Advanced Engineered Materials			5			(2)			(1)			—			2
Consumer Specialties			17			(9)			—			—			8
Total Materials Solutions			9			(5)			—			—			4
Industrial Specialties			—			(9)			(1)			—			(10)
Acetyl Intermediates			6			(13)			(2)			2			(7)
Total Acetyl Chain			5			(13)			(2)			1			(9)
Total Company			7			(10)			(2)			1			(4)

Table 4c
Factors Affecting Segment Net Sales Year Over Year - Unaudited
Year Ended December 31, 2016 Compared to Year Ended December 31, 2015
			Volume				Price				Currency				Other			Total
			(In percentages)
Advanced Engineered Materials			11				(2	)			—				—			9
Consumer Specialties			4				(8	)			—				—			(4	)
Total Materials Solutions			8				(5	)			—				—			3
Industrial Specialties			(1	)			(8	)			(1	)			—			(10	)
Acetyl Intermediates			(2	)			(10	)			(1	)			2			(11	)
Total Acetyl Chain			(2	)			(10	)			(1	)			2			(11	)
Total Company			2				(8	)			(1	)			2			(5	)

Table 5
Free Cash Flow - Reconciliation of a Non-GAAP Measure - Unaudited
			Q3 '17				Q2 '17				Q1 '17				2016				Q4 '16				Q3 '16				Q2 '16				Q1 '16
			(In $ millions)
Net cash provided by (used in) investing activities			(68	)			(325	)			(64	)			(439	)			(247	)			(54	)			(63	)			(75	)
Net cash provided by (used in) financing activities			(247	)			21				(270	)			(759	)			(292	)			265				(259	)			(473	)
Net cash provided by (used in) operating activities			255				298				192				893				(47	)			304				349				287
Capital expenditures on property, plant and equipment			(64	)			(54	)			(62	)			(246	)			(60	)			(58	)			(58	)			(70	)
Capital (distributions to) contributions from NCI			(10	)			(4	)			(4	)			(24	)			(9	)			(9	)			(6	)			—
Free cash flow(1)(2)			181				240				126				623				(116	)			237				285				217

______________________________
(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 from or distributions to Mitsui & Co., Ltd. ("Mitsui") related to our joint venture, Fairway Methanol LLC ("Fairway").
(2)		Excludes required debt service and capital lease payments of $27 million and $56 million for the years ending December 31, 2017 and 2016, respectively.

Table 6
Cash Dividends Received - Unaudited
			Q3 '17			Q2 '17			Q1 '17			2016			Q4 '16			Q3 '16			Q2 '16			Q1 '16
			(In $ millions)
Dividends from equity method investments			5			59			50			131			15			6			73			37
Dividends from cost method investments			24			29			29			108			26			26			29			27
Total			29			88			79			239			41			32			102			64

Table 7
Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited
			Q3 '17				Q2 '17				Q1 '17				2016				Q4 '16				Q3 '16				Q2 '16				Q1 '16
			(In $ millions)
Short-term borrowings and current installments of long-term debt - third party and affiliates			435				384				107				118				118				92				119				116
Long-term debt, net of unamortized deferred financing costs			2,954				2,931				2,851				2,890				2,890				2,923				2,464				2,487
Total debt			3,389				3,315				2,958				3,008				3,008				3,015				2,583				2,603
Cash and cash equivalents			(461	)			(511	)			(501	)			(638	)			(638	)			(1,252	)			(735	)			(716	)
Net debt			2,928				2,804				2,457				2,370				2,370				1,763				1,848				1,887

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:
			Q3 '17			Q2 '17				Q1 '17				2016				Q4 '16				Q3 '16				Q2 '16			Q1 '16			Income Statement Classification
			(In $ millions)
Employee termination benefits(1)			—			2				2				11				—				3				3			5			Other charges (gains), net
Plant/office closures			2			(3	)			57				4				1				2				—			1			Cost of sales / SG&A / R&D / Other charges (gains), net
Business optimization			4			—				—				7				3				1				1			2			Cost of sales / SG&A
Asset impairments			—			—				—				2				1				—				1			—			Other charges (gains), net
(Gain) loss on disposition of business and assets, net			—			2				—				(4	)			(2	)			(2	)			—			—			(Gain) loss on disposition, net
Commercial disputes			—			—				—				(2	)			(2	)			—				—			—			Other charges (gains), net
Write-off of other productive assets			—			—				—				4				1				1				2			—			Cost of sales / R&D
Employee benefit plan changes			—			1				—				1				—				—				1			—			Cost of sales / SG&A / R&D
Actuarial (gain) loss on pension and postretirement plans			—			—				—				102				102				—				—			—			Cost of sales / SG&A / R&D
Start-up costs			—			—				—				2				—				1				1			—			Cost of sales
Mergers and acquisitions			10			7				9				3				2				1				—			—			Cost of sales / SG&A
InfraServ ownership change			—			8				—				—				—				—				—			—			Other charges (gains), net / Equity in net earnings (loss) of affiliates
Impact from natural disasters(2)			11			—				—				—				—				—				—			—			Cost of sales
Other			—			1				(3	)			—				—				—				—			—			Equity in net earnings (loss) of affiliates
Certain Items attributable to Celanese Corporation			27			18				65				130				106				7				9			8

______________________________
(1)		Primarily associated with site shutdown costs.
(2)		Primarily associated with Hurricane Harvey.

Table 9
Return on Invested Capital (Adjusted) - Presentation of a Non-GAAP Measure - Unaudited
									2016
									(In $ millions,
									except percentages)
Net earnings (loss) attributable to Celanese Corporation									900
Adjusted EBIT (Table 1)									1,278
Adjusted effective tax rate (Table 3a)									17	%
Adjusted EBIT tax effected									1,061
			2016			2015			Average
			(In $ millions, except percentages)
Short-term borrowings and current installments of long-term debt - third parties and affiliates			118			513			316
Long-term debt, net of unamortized deferred financing costs			2,890			2,468			2,679
Celanese Corporation stockholders' equity			2,588			2,378			2,483
Invested capital									5,478
Return on invested capital (adjusted)									19.4	%
Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital									16.4	%

View source version on businesswire.com: http://www.businesswire.com/news/home/20171016006196/en/

Celanese Corporation
Investor Relations
Surabhi Varshney, +1-972-443-3078
Surabhi.Varshney@celanese.com
or
Media - U.S.
Travis Jacobsen, +1-972-443-3750
William.Jacobsen@celanese.com
or
Media - Europe
Jens Kurth, +49(0)69 45009 1574
Jens.Kurth@celanese.com

Source: Celanese Corporation