Celanese Corporation Reports Second Quarter Earnings; Increases 2017 Outlook

Mon, July 24 2017

DALLAS--(BUSINESS WIRE)-- Celanese Corporation (NYSE: CE), a global technology and specialty materials company, today reported second quarter 2017 GAAP diluted earnings per share of $1.72 and adjusted earnings per share of $1.79, each a second quarter record. The Acetyl Chain and the Materials Solutions cores both contributed to the strong performance in the quarter. Advanced Engineered Materials grew project commercializations from translation of customer needs into value-add solutions and success with the ongoing integration of SO.F.TER. and Nilit. The Acetyl Chain grew profitability, overcoming the impact of a major site-wide turnaround. In the quarter, the company executed an agreement with Blackstone to form a new global company combining Celanese's cellulose derivatives and Blackstone's recently acquired Rhodia Acetow businesses. This will bring together two complementary cellulose acetate businesses that will better service global customers and advance technology to support existing and future markets.

Second Quarter 2017 Financial Highlights:

			Three Months Ended
			June 30,
			2017				2016
			(unaudited)
			(In $ millions)
Operating Profit (Loss)
Advanced Engineered Materials			97				82
Consumer Specialties			49				80
Total Materials Solutions			146				162
Industrial Specialties			26				29
Acetyl Intermediates			109				77
Eliminations			—				1
Total Acetyl Chain			135				107
Other Activities			(41	)			(26	)
Total			240				243

			Three Months Ended
			June 30,
				2017					2016
			(unaudited)
			(In $ millions, except per share data)
Net Earnings (Loss)				233					223
Adjusted EBIT(1)(2)
Advanced Engineered Materials				142					111
Consumer Specialties				79					108
Total Materials Solutions				221					219
Industrial Specialties				26					30
Acetyl Intermediates				106					80
Eliminations				—					1
Total Acetyl Chain				132					111
Other Activities				(27	)				(18	)
Total				326					312
Equity Earnings, Cost-Dividend Income, Other Income (Expense)
Advanced Engineered Materials				38					27
Consumer Specialties				28					28
Total Materials Solutions				66					55
Operating EBITDA(1)				401					385
Diluted EPS - continuing operations			$	1.72				$	1.50
Diluted EPS - total			$	1.66				$	1.50
Adjusted EPS(1)			$	1.79				$	1.59
Net cash provided by (used in) investing activities				(325	)				(63	)
Net cash provided by (used in) financing activities				21					(259	)
Net cash provided by (used in) operating activities				298					349
Free cash flow(1)				240					285

______________________________
(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.

Second Quarter 2017 Highlights:

• Signed an agreement with Blackstone to combine Celanese’s cellulose derivatives and Blackstone’s Rhodia Acetow businesses in a 70-30 joint venture, pending approvals. JV is expected to distribute a $1.6 billion cash dividend to Celanese at close which will be deployed in organic growth, acquisitions, share repurchases, and debt reduction.
• Completed the acquisition of the nylon compounding division of Nilit Group (Nilit), a major independent producer of high performance nylon polymers and compounds. This acquisition enhances Celanese's leadership position in Advanced Engineered Materials (AEM), enabling further success of the opportunity pipeline.
• Commercialized a record 547 projects in the second quarter of 2017, a 63 percent increase from the same period last year, in engineered materials (AEM excluding affiliates). Increased target for projects closed in 2017 to above 2000, a 44 percent increase over 2016.
• Announced a new $1.5 billion share repurchase authorization. The timing of the repurchases will be partially based on the closing of the tow joint venture with Blackstone.
• Increased the quarterly common stock cash dividend by 28 percent from $1.44 to $1.84 per share on an annual basis. This is the first of three steps to grow cash dividends by 50% cumulatively over a three-year period.
• Confirmed that the Ibn Sina JV polyacetal (POM) facility in Jubail, Saudi Arabia is in the testing phase with production expected in the third quarter of 2017.

Second Quarter 2017 Business Segment Overview

Materials Solutions

Materials Solutions reported record net sales of $709 million in the second quarter, an 18 percent improvement over the prior year with Advanced Engineered Materials more than offsetting the decline in Consumer Specialties. Advanced Engineered Materials generated record second quarter GAAP operating profit of $97 million and record second quarter segment income of $142 million. An all time high of 547 projects were commercialized in the quarter driven by the organic opportunity pipeline and the recent SO.F.TER. and Nilit acquisitions. The successful integration of these acquisitions is a key element of AEM's growth strategy. While immediately accretive to segment income, these acquisitions are margin dilutive until synergies and product value upgrades are realized. Volume increased over second quarter of 2016 driven by the acquisitions, growth in Asia, and success of the project pipeline.

Acetate tow volume and price declined year over year driven by lower industry capacity utilization rates and outpaced productivity gains in the quarter. Sequentially, tow volume and price declined mainly because the first quarter of 2017 had some unique carryovers from 2016 contracts.

Affiliate earnings increased 20 percent year over year to $66 million primarily driven by Ibn Sina which had a turnaround in the second quarter of 2016 that did not occur in 2017.

Acetyl Chain

The Acetyl Chain grew second quarter GAAP operating profit by 26 percent year over year to $135 million and grew core income by 19 percent year over year to $132 million. During the planned turnaround in Clear Lake, Texas, the business leveraged its global production and supply chain capabilities and established product swaps to ensure reliability of supply to key customers, overcoming industry supply constraints and Celanese's limitations at Clear Lake. Pricing expanded in excess of higher raw material costs across products and more than offset higher turnaround expenses. GAAP operating margin of 16.3 percent and segment income margin of 16.0 percent were second quarter records. The chain's ability to respond quickly to global trade flow changes, even with the flagship acetyl plant in a major turnaround, demonstrates the versatility of the acetyls business at Celanese.

Cash Flow

The Company recorded operating cash flow of $298 million and free cash flow of $240 million. Capital expenditures were $54 million in the quarter. In the second quarter, a total of $237 million cash was returned to shareholders, via $172 million in share buy-backs and $65 million in dividends. The Company targets at least $500 million in share repurchases in 2017.

Outlook

"The focus on value delivery at Celanese and growth driven business models enabled the strong performance in the second quarter. Advanced Engineered Materials is expected to generate outsized earnings growth propelled by a vibrant project pipeline and early success from integrating SO.F.TER. and Nilit. The Acetyl Chain is poised to drive earnings growth in the second half of 2017 by leveraging raw material volatility and higher volumes as Clear Lake returns to pre-turnaround capacity. Productivity savings of approximately $100 million are on target for the year, supported by initiatives across the company. Building on our success in the second quarter, we are increasing our expectations for growth in adjusted earnings per share to 9-11 percent for 2017," said Rohr.

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 second quarter results will be posted on its website at www.celanese.com under Investor Relations/Events and Presentations after market close on July 24, 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 July 24, 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
			June 30,
			2017				2016
			(In $ millions, except share and per share data)
Net sales			1,510				1,351
Cost of sales			(1,143	)			(1,013	)
Gross profit			367				338
Selling, general and administrative expenses			(96	)			(71	)
Amortization of intangible assets			(5	)			(2	)
Research and development expenses			(17	)			(19	)
Other (charges) gains, net			(3	)			(4	)
Foreign exchange gain (loss), net			(4	)			(1	)
Gain (loss) on disposition of businesses and asset, net			(2	)			2
Operating profit (loss)			240				243
Equity in net earnings (loss) of affiliates			38				35
Interest expense			(30	)			(30	)
Refinancing expense			—				—
Interest income			1				—
Dividend income - cost investments			29				29
Other income (expense), net			3				(2	)
Earnings (loss) from continuing operations before tax			281				275
Income tax (provision) benefit			(40	)			(52	)
Earnings (loss) from continuing operations			241				223
Earnings (loss) from operation of discontinued operations			(9	)			—
Income tax (provision) benefit from discontinued operations			1				—
Earnings (loss) from discontinued operations			(8	)			—
Net earnings (loss)			233				223
Net (earnings) loss attributable to noncontrolling interests			(2	)			(2	)
Net earnings (loss) attributable to Celanese Corporation			231				221
Amounts attributable to Celanese Corporation
Earnings (loss) from continuing operations			239				221
Earnings (loss) from discontinued operations			(8	)			—
Net earnings (loss)			231				221
Earnings (loss) per common share - basic
Continuing operations			1.73				1.51
Discontinued operations			(0.06	)			—
Net earnings (loss) - basic			1.67				1.51
Earnings (loss) per common share - diluted
Continuing operations			1.72				1.50
Discontinued operations			(0.06	)			—
Net earnings (loss) - diluted			1.66				1.50
Weighted average shares (in millions)
Basic			138.6				146.5
Diluted			139.0				147.1

Consolidated Balance Sheets - Unaudited
			As of				As of
			June 30,				December 31,
			2017				2016
			(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents			511				638
Trade receivables - third party and affiliates, net			985				801
Non-trade receivables, net			227				223
Inventories			771				720
Marketable securities, at fair value			30				30
Other assets			59				60
Total current assets			2,583				2,472
Investments in affiliates			885				852
Property, plant and equipment, net			3,663				3,577
Deferred income taxes			164				159
Other assets			311				307
Goodwill			975				796
Intangible assets, net			302				194
Total assets			8,883				8,357
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current installments of long-term debt - third party and affiliates			384				118
Trade payables - third party and affiliates			666				625
Other liabilities			332				322
Income taxes payable			42				12
Total current liabilities			1,424				1,077
Long-term debt, net of unamortized deferred financing costs			2,931				2,890
Deferred income taxes			165				130
Uncertain tax positions			150				131
Benefit obligations			866				893
Other liabilities			225				215
Commitments and Contingencies
Stockholders' Equity
Preferred stock			—				—
Common stock			—				—
Treasury stock, at cost			(1,834	)			(1,531	)
Additional paid-in capital			158				157
Retained earnings			4,617				4,320
Accumulated other comprehensive income (loss), net			(247	)			(358	)
Total Celanese Corporation stockholders' equity			2,694				2,588
Noncontrolling interests			428				433
Total equity			3,122				3,021
Total liabilities and equity			8,883				8,357

Non-US GAAP Financial Measures and Supplemental Information

July 24, 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
			Q2 '17				Q1 '17			2016				Q4 '16				Q3 '16			Q2 '16			Q1 '16
			(In $ millions)
Net earnings (loss) attributable to Celanese Corporation			231				183			900				160				262			221			257
(Earnings) loss from discontinued operations			8				—			2				—				3			—			(1	)
Interest income			(1	)			—			(2	)			(1	)			—			—			(1	)
Interest expense			30				29			120				29				28			30			33
Refinancing expense			—				—			6				—				4			—			2
Income tax provision (benefit)			40				56			122				(5	)			15			52			60
Certain Items attributable to Celanese Corporation (Table 8)			18				65			130				106				7			9			8
Adjusted EBIT			326				333			1,278				289				319			312			358
Depreciation and amortization expense(1)			75				71			288				71				71			73			73
Operating EBITDA			401				404			1,566				360				390			385			431
			Q2 '17				Q1 '17			2016				Q4 '16				Q3 '16			Q2 '16			Q1 '16
			(In $ millions)
Advanced Engineered Materials			—				—			—				—				—			—			—
Consumer Specialties			—				—			1				—				1			—			—
Industrial Specialties			—				—			—				—				—			—			—
Acetyl Intermediates			—				—			—				—				—			—			—
Other Activities(2)			—				—			1				1				—			—			—
Accelerated depreciation and amortization expense			—				—			2				1				1			—			—
Depreciation and amortization expense(1)			75				71			288				71				71			73			73
Total depreciation and amortization expense			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
			Q2 '17								Q1 '17								2016								Q4 '16								Q3 '16								Q2 '16								Q1 '16
			(In $ millions, except percentages)
Operating Profit (Loss) / Operating Margin
Materials Solutions			146				20.6	%			166				23.5	%			652				27.5	%			163				27.7	%			161				27.3	%			162				27.0	%			166				27.9	%
Acetyl Chain(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)			(41	)							(26	)							(205	)							(132	)							(23	)							(26	)							(24	)
Total			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								1								6								1								1								2								2
Operating Profit (Loss) Attributable to Celanese Corporation			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				18.8	%			98				20.1	%			350				24.2	%			87				23.9	%			93				25.5	%			82				22.5	%			88				25.1	%
Consumer Specialties			49				25.4	%			68				31.2	%			302				32.5	%			76				33.8	%			68				30.2	%			80				34.0	%			78				32.0	%
Total Materials Solutions			146				20.6	%			166				23.5	%			652				27.5	%			163				27.7	%			161				27.3	%			162				27.0	%			166				27.9	%
Industrial Specialties			26				9.9	%			25				10.2	%			105				10.7	%			20				9.1	%			25				10.2	%			29				11.1	%			31				12.3	%
Acetyl Intermediates(1)			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			133				16.1	%			51				6.4	%			440				14.0	%			85				11.3	%			107				14.0	%			105				13.5	%			143				17.0	%
Other Activities(2)			(41	)							(26	)							(205	)							(132	)							(23	)							(26	)							(24	)
Total			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			38								42								122								31								33								27								31
Consumer Specialties			28								30								110								27								27								28								28
Total Materials Solutions			66								72								232								58								60								55								59
Industrial Specialties			—								—								—								—								—								—								—
Acetyl Intermediates			2								1								7								2								1								2								2
Total Acetyl Chain			2								1								7								2								1								2								2
Other Activities(2)			2								4								22								7								6								5								4
Total			70								77								261								67								67								62								65
Certain Items Attributable to Celanese Corporation (Table 8)
Advanced Engineered Materials			7								3								7								3								1								2								1
Consumer Specialties			2								2								6								3								3								—								—
Total Materials Solutions			9								5								13								6								4								2								1
Industrial Specialties			—								—								1								(2	)							—								1								2
Acetyl Intermediates			(3	)							56								6								1								1								3								1
Total Acetyl Chain			(3	)							56								7								(1	)							1								4								3
Other Activities(2)			12								4								110								101								2								3								4
Total			18								65								130								106								7								9								8
Adjusted EBIT / Adjusted EBIT Margin
Advanced Engineered Materials			142				27.5	%			143				29.4	%			479				33.2	%			121				33.2	%			127				34.8	%			111				30.4	%			120				34.3	%
Consumer Specialties			79				40.9	%			100				45.9	%			418				45.0	%			106				47.1	%			98				43.6	%			108				46.0	%			106				43.4	%
Total Materials Solutions			221				31.2	%			243				34.5	%			897				37.8	%			227				38.5	%			225				38.1	%			219				36.5	%			226				38.0	%
Industrial Specialties			26				9.9	%			25				10.2	%			106				10.8	%			18				8.2	%			25				10.2	%			30				11.5	%			33				13.0	%
Acetyl Intermediates			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			132				16.0	%			108				13.6	%			454				14.5	%			86				11.5	%			109				14.3	%			111				14.2	%			148				17.6	%
Other Activities(2)			(27	)							(18	)							(73	)							(24	)							(15	)							(18	)							(16	)
Total			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.)
			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			26								24								92								21								22								25								24
Consumer Specialties			11								11								44								11								11								11								11
Total Materials Solutions			37								35								136								32								33								36								35
Industrial Specialties			10								8								34								9								9								8								8
Acetyl Intermediates			26								26								107								26								27								27								27
Total Acetyl Chain			36								34								141								35								36								35								35
Other Activities(2)			2								2								11								4								2								2								3
Total			75								71								288								71								71								73								73
Operating EBITDA / Operating EBITDA Margin
Advanced Engineered Materials			168				32.6	%			167				34.3	%			571				39.5	%			142				39.0	%			149				40.8	%			136				37.3	%			144				41.1	%
Consumer Specialties			90				46.6	%			111				50.9	%			462				49.7	%			117				52.0	%			109				48.4	%			119				50.6	%			117				48.0	%
Total Materials Solutions			258				36.4	%			278				39.4	%			1,033				43.5	%			259				44.0	%			258				43.7	%			255				42.5	%			261				43.9	%
Industrial Specialties			36				13.7	%			33				13.5	%			140				14.3	%			27				12.3	%			34				13.9	%			38				14.5	%			41				16.2	%
Acetyl Intermediates			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			168				20.3	%			142				17.9	%			595				19.0	%			121				16.2	%			145				19.0	%			146				18.7	%			183				21.8	%
Other Activities(2)			(25	)							(16	)							(62	)							(20	)							(13	)							(16	)							(13	)
Total			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
									Q2 '17					Q1 '17					2016					Q4 '16					Q3 '16					Q2 '16					Q1 '16
												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									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)									40					56					122					(5	)				15					52					60
Earnings (loss) from continuing operations before tax									279					239					1,024					155					280					273					316
Certain Items attributable to Celanese Corporation (Table 8)									18					65					130					106					7					9					8
Refinancing and related expenses									—					—					6					—					4					—					2
Adjusted earnings (loss) from continuing operations before tax									297					304					1,160					261					291					282					326
Income tax (provision) benefit on adjusted earnings(1)									(48	)				(49	)				(197	)				(44	)				(49	)				(48	)				(55	)
Adjusted earnings (loss) from continuing operations(2)									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									138.6					140.6					144.9					141.9					144.0					146.5					147.4
Incremental shares attributable to equity awards									0.4					0.4					0.8					0.7					0.6					0.6					0.7
Total diluted shares									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:
									Q2 '17					Q1 '17					2016					Q4 '16					Q3 '16					Q2 '16					Q1 '16
									(In percentages)
		Adjusted effective tax rate							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.
				Actual Plan Asset Returns		Expected Plan Asset 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
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)			(1	)			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
					Q2 '17				Q1 '17				2016				Q4 '16				Q3 '16				Q2 '16				Q1 '16
					(In $ millions)
Advanced Engineered Materials					516				487				1,444				364				365				365				350
Consumer Specialties					193				218				929				225				225				235				244
Total Materials Solutions					709				705				2,373				589				590				600				594
Industrial Specialties					262				245				979				219				245				262				253
Acetyl Intermediates					649				619				2,441				597				589				592				663
Eliminations(1)					(85	)			(70	)			(288	)			(67	)			(71	)			(74	)			(76	)
Total Acetyl Chain					826				794				3,132				749				763				780				840
Other Activities(2)					—				—				—				—				—				—				—
Intersegment eliminations(1)					(25	)			(28	)			(116	)			(27	)			(30	)			(29	)			(30	)
Net sales					1,510				1,471				5,389				1,311				1,323				1,351				1,404
___________________________
(1)		Includes intersegment sales as follows:
					Q2 '17				Q1 '17				2016				Q4 '16				Q3 '16				Q2 '16				Q1 '16
					(In $ millions)
		Industrial Specialties			(1	)			(1	)			(3	)			(1	)			(1	)			(1	)			—
		Acetyl Intermediates			(109	)			(97	)			(401	)			(93	)			(100	)			(102	)			(106	)
		Intersegment eliminations			(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 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	)

Table 4a
Factors Affecting Segment Net Sales Sequentially - Unaudited (cont.)
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	)

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 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	)

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
			Q2 '17				Q1 '17				2016				Q4 '16				Q3 '16				Q2 '16				Q1 '16
			(In $ millions)
Net cash provided by (used in) investing activities			(325	)			(64	)			(439	)			(247	)			(54	)			(63	)			(75	)
Net cash provided by (used in) financing activities			21				(270	)			(759	)			(292	)			265				(259	)			(473	)
Net cash provided by (used in) operating activities			298				192				893				(47	)			304				349				287
Capital expenditures on property, plant and equipment			(54	)			(62	)			(246	)			(60	)			(58	)			(58	)			(70	)
Capital (distributions to) contributions from NCI			(4	)			(4	)			(24	)			(9	)			(9	)			(6	)			—
Free cash flow(1)(2)			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
			Q2 '17			Q1 '17			2016			Q4 '16			Q3 '16			Q2 '16			Q1 '16
			(In $ millions)
Dividends from equity method investments			59			50			131			15			6			73			37
Dividends from cost method investments			29			29			108			26			26			29			27
Total			88			79			239			41			32			102			64

Table 7
Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited
			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			384				107				118				118				92				119				116
Long-term debt, net of unamortized deferred financing costs			2,931				2,851				2,890				2,890				2,923				2,464				2,487
Total debt			3,315				2,958				3,008				3,008				3,015				2,583				2,603
Cash and cash equivalents			(511	)			(501	)			(638	)			(638	)			(1,252	)			(735	)			(716	)
Net debt			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:
			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			(3	)			57				4				1				2				—			1			Cost of sales / SG&A / Other charges (gains), net
Business optimization			—				—				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			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
Other			1				(3	)			—				—				—				—			—			Equity in net earnings (loss) of affiliates
Certain Items attributable to Celanese Corporation			18				65				130				106				7				9			8

______________________________
(1)		Primarily associated with site shutdown costs.

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	%

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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