Celanese Corporation Reports Third Quarter Earnings; Maintains 2016 Outlook

Mon, October 17 2016

DALLAS--(BUSINESS WIRE)-- Celanese Corporation (NYSE: CE), a global technology and specialty materials company, today reported third quarter 2016 GAAP diluted earnings per share of $1.83 and adjusted earnings per share of $1.67, both third quarter records. These impressive results were driven by the strength of our operating models in both Materials Solutions and the Acetyl Chain as well as our consistent focus on productivity. In Advanced Engineered Materials, we drove strong year over year growth by continuing the momentum of our engineered materials opportunity pipeline, where we engage closely with our customers and meet their most pressing needs by combining the broadest materials portfolio with our market knowledge and application expertise. Earlier today, we announced an agreement to acquire Italy based SO.F.TER. Group, which would broaden our portfolio capabilities even further in engineered materials and extend our industry leadership position. In the Acetyl Chain, we were able to drive a differentiated result and maintain profitability in the quarter, leaning on our global footprint and integrated network to manage an environment of low raw material pricing and tepid market demand.

Third Quarter 2016 Financial Highlights:

			Three Months Ended
			September 30, 2016				June 30, 2016				September 30, 2015
			(unaudited)
			(In $ millions)
Operating Profit (Loss)
Advanced Engineered Materials			93				82				58
Consumer Specialties			68				80				77
Total Materials Solutions			161				162				135
Industrial Specialties			25				29				19
Acetyl Intermediates			83				77				54
Eliminations			—				1				—
Total Acetyl Chain			108				107				73
Other Activities			(23	)			(26	)			(22	)
Total			246				243				186

			Three Months Ended
			September 30, 2016					June 30, 2016					September 30, 2015
			(unaudited)
			(In $ millions, except per share data)
Net Earnings (Loss)				263					223					151
Adjusted EBIT(1)(2)
Advanced Engineered Materials				127					111					106
Consumer Specialties				98					108					105
Total Materials Solutions				225					219					211
Industrial Specialties				25					30					28
Acetyl Intermediates				84					80					84
Eliminations				—					1					—
Total Acetyl Chain				109					111					112
Other Activities				(15	)				(18	)				(18	)
Total				319					312					305
Equity Earnings, Cost-Dividend Income, Other Income (Expense)
Advanced Engineered Materials				33					27					44
Consumer Specialties				27					28					26
Total Materials Solutions				60					55					70
Operating EBITDA(1)				390					385					375
Diluted EPS - continuing operations			$	1.83				$	1.50				$	1.07
Diluted EPS - total			$	1.81				$	1.50				$	1.07
Adjusted EPS(1)			$	1.67				$	1.59				$	1.50
Net cash provided by (used in) investing activities				(54	)				(63	)				(107	)
Net cash provided by (used in) financing activities				265					(259	)				(99	)
Net cash provided by (used in) operating activities				304					349					173
Free cash flow(1)				237					285					101

______________________________
(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 below.

Third Quarter 2016 Highlights:

• Signed a definitive agreement to acquire 100% of the stock of Forli, Italy based SO.F.TER. Group, one of the world's largest independent thermoplastics compounders. The acquisition will nearly double the number of Celanese global engineered materials platforms.
• Issued €750 million of 1.125% Senior Notes due 2023 and used €367 million of the proceeds to repay short term revolver borrowings.
• Began production at the new vinyl acetate ethylene (VAE) production unit located at its manufacturing facility on Jurong Island, Singapore. The unit will support the growing demand in the Southeast Asia region, including Australia, India and New Zealand.
• Showcasing the Art of Material Selection at K 2016 in October in Düsseldorf, Germany, the premier global trade fair for the plastics industry. Celanese will highlight polymers supporting a variety of customers, including:
  • Consumer goods and electronics manufacturers as they design and produce effective, functional and attractive products
  • Manufacturers of medical devices, from surgical tools to orthopedic implants, helping them to improve product design, safety and effectiveness
  • Original equipment manufacturers (OEMs) as they secure a competitive edge with more attractive, lightweight, better-designed vehicles

"I am pleased to report the highest third quarter earnings per share performance in our history. Our results demonstrate the leadership positions that we have established in both of our cores and our ability to drive results irrespective of prevailing market conditions. In Materials Solutions, we have had tremendous success leveraging our industry leading portfolio of polymers to meet our customers' most challenging demands and staying ahead of developing market trends. Building on this success, we are excited to announce the acquisition of SO.F.TER. Group, one of the world's largest independent compounders. This acquisition is a natural step in the evolution of engineered materials as it further increases our available polymers, our compounding capabilities and our customer reach. In the Acetyl Chain, we leveraged our integrated production network and global presence during the quarter, managing through a period of stubbornly low capacity utilization to deliver strong performance. Our business results and productivity actions drove another quarter of impressive cash generation, returning $152 million to our shareholders through $100 million of share repurchases and $52 million in dividends. During the quarter, we opportunistically refinanced our short term revolver borrowings with longer term European debt at a very favorable rate, and our balance sheet stands in an optimal position to execute our M&A and capital deployment strategies," said Mark Rohr, chairman and chief executive officer.

Third Quarter 2016 Business Segment Overview

Materials Solutions

Materials Solutions core grew profitability over the prior year, as strong volume growth more than offset the impact of lower affiliate earnings and tow pricing. Advanced Engineered Materials generated a third quarter record operating profit and delivered the highest quarterly adjusted EBIT in its history. We generated strong volume growth year over year across a variety of product lines, driven by customer intimacy and the strength of our opportunity pipeline, which more than offset lower pricing in the quarter. We successfully launched a record 351 new projects, and have launched 996 new projects year-to-date, as we continued to extend our reach with a focus on high-value applications.

Affiliate results in the quarter were impacted mainly by a decline of $13 million in Ibn Sina equity earnings caused primarily by lower prices for MTBE.

Tow pricing was lower than the prior year due to lower industry capacity utilization rates. Volumes declined primarily due to unusual buying patterns in Europe earlier in 2016, which shifted second half volumes into the first half of the year.

Acetyl Chain

In the Acetyl Chain, we leveraged our integrated production network and global presence to preserve margins in the continuing low pricing environment. Pricing for acetic acid and derivatives was lower versus the prior year, principally driven by China and lower methanol prices, which more than offset the benefits of productivity initiatives.

Cash Flow

The company recorded operating cash flow of $304 million, and we generated free cash flow of $237 million. These results were driven by growth in the Materials Solutions core and disciplined working capital management. Capital expenditures in the quarter were $58 million. During the quarter, we returned $152 million to our shareholders, including $100 million to repurchase 1.5 million shares and $52 million of dividends.

Outlook

"In the third quarter, we once again demonstrated the effectiveness of our business models and our ability to create value for our customers and shareholders. As we approach the end of the year, we see no material changes in the operating environment, which is still impacted by sluggish economic growth. Utilization rates in the Acetyl Chain remain historically low, particularly in China, and growth in Europe and North America has been modest. We will continue to focus on commercial discipline and productivity actions to drive value despite a lackluster macro environment, and we expect to deliver growth in adjusted earnings per share of 8-10 percent for full year 2016," 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 third quarter results will be posted on its website at www.celanese.com under Investor Relations/Events and Presentations after market close on October 17, 2016. Information about Non-US GAAP measures is included in a Non-US GAAP Financial Measures and Supplemental Information document posted on our 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 7,000 employees worldwide and had 2015 net sales of $5.7 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 or performance, capital expenditures, financing needs and other information that is not historical information. All forward-looking statements are based upon current expectations and beliefs and various assumptions, including the announced stock purchase 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 acquisition. 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 their current levels of production costs and to improve productivity by implementing technological improvements to existing plants; 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. For comparative purposes, the historical financial information included herein has been presented to reflect the Acetyl Chain and Materials Solutions subtotals. There has been no change to the composition of the Company's business segments.

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 business segment may also be referred to by management as segment income. 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 business segment may also be referred to by management as segment income margin. Adjusted EBIT margin by core may also be referred to by management as core 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 17, 2016 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, 2016				June 30, 2016				September 30, 2015
			(In $ millions, except share and per share data)
Net sales			1,323				1,351				1,413
Cost of sales			(968	)			(1,013	)			(1,110	)
Gross profit			355				338				303
Selling, general and administrative expenses			(81	)			(71	)			(93	)
Amortization of intangible assets			(3	)			(2	)			(3	)
Research and development expenses			(20	)			(19	)			(19	)
Other (charges) gains, net			(3	)			(4	)			(4	)
Foreign exchange gain (loss), net			(1	)			(1	)			3
Gain (loss) on disposition of businesses and asset, net			(1	)			2				(1	)
Operating profit (loss)			246				243				186
Equity in net earnings (loss) of affiliates			41				35				50
Interest expense			(28	)			(30	)			(29	)
Refinancing expense			(4	)			—				—
Interest income			—				—				—
Dividend income - cost investments			26				29				26
Other income (expense), net			—				(2	)			(8	)
Earnings (loss) from continuing operations before tax			281				275				225
Income tax (provision) benefit			(15	)			(52	)			(74	)
Earnings (loss) from continuing operations			266				223				151
Earnings (loss) from operation of discontinued operations			(4	)			—				—
Income tax (provision) benefit from discontinued operations			1				—				—
Earnings (loss) from discontinued operations			(3	)			—				—
Net earnings (loss)			263				223				151
Net (earnings) loss attributable to noncontrolling interests			(1	)			(2	)			10
Net earnings (loss) attributable to Celanese Corporation			262				221				161
Amounts attributable to Celanese Corporation
Earnings (loss) from continuing operations			265				221				161
Earnings (loss) from discontinued operations			(3	)			—				—
Net earnings (loss)			262				221				161
Earnings (loss) per common share - basic
Continuing operations			1.84				1.51				1.07
Discontinued operations			(0.02	)			—				—
Net earnings (loss) - basic			1.82				1.51				1.07
Earnings (loss) per common share - diluted
Continuing operations			1.83				1.50				1.07
Discontinued operations			(0.02	)			—				—
Net earnings (loss) - diluted			1.81				1.50				1.07
Weighted average shares (in millions)
Basic			144.0				146.5				149.8
Diluted			144.6				147.1				151.0

Consolidated Balance Sheets - Unaudited
			As of September 30, 2016				As of December 31, 2015
			(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents			1,252				967
Trade receivables - third party and affiliates, net			791				706
Non-trade receivables, net			214				285
Inventories			652				682
Deferred income taxes			—				68
Marketable securities, at fair value			34				30
Other assets			35				49
Total current assets			2,978				2,787
Investments in affiliates			864				838
Property, plant and equipment, net			3,578				3,609
Deferred income taxes			216				222
Other assets			290				300
Goodwill			712				705
Intangible assets, net			119				125
Total assets			8,757				8,586
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current installments of long-term debt - third party and affiliates			92				513
Trade payables - third party and affiliates			591				587
Other liabilities			299				330
Deferred income taxes			—				30
Income taxes payable			116				90
Total current liabilities			1,098				1,550
Long-term debt, net of unamortized deferred financing costs			2,923				2,468
Deferred income taxes			139				136
Uncertain tax positions			101				167
Benefit obligations			1,124				1,189
Other liabilities			221				247
Commitments and Contingencies
Stockholders' Equity
Preferred stock			—				—
Common stock			—				—
Treasury stock, at cost			(1,331	)			(1,031	)
Additional paid-in capital			140				136
Retained earnings			4,211				3,621
Accumulated other comprehensive income (loss), net			(310	)			(348	)
Total Celanese Corporation stockholders' equity			2,710				2,378
Noncontrolling interests			441				451
Total equity			3,151				2,829
Total liabilities and equity			8,757				8,586

Non-US GAAP Financial Measures and Supplemental Information

October 17, 2016

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. For comparative purposes, the historical financial information included herein has been presented to reflect the Acetyl Chain and Materials Solutions subtotals. There has been no change to the composition of the Company's business segments.

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 business segment may also be referred to by management as segment income. 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 business segment may also be referred to by management as segment income margin. Adjusted EBIT margin by core may also be referred to by management as core 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. 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 '16			Q2 '16			Q1 '16				2015				Q4 '15				Q3 '15			Q2 '15				Q1 '15
			(In $ millions)
Net earnings (loss) attributable to Celanese Corporation			262			221			257				304				(298	)			161			205				236
(Earnings) loss from discontinued operations			3			—			(1	)			2				—				—			2				—
Interest income			—			—			(1	)			(1	)			—				—			(1	)			—
Interest expense			28			30			33				119				33				29			30				27
Refinancing expense			4			—			2				—				—				—			—				—
Income tax provision (benefit)			15			52			60				201				31				74			24				72
Certain Items attributable to Celanese Corporation (Table 8)			7			9			8				611				490				41			65				15
Adjusted EBIT			319			312			358				1,236				256				305			325				350
Depreciation and amortization expense(1)			71			73			73				279				76				70			66				67
Operating EBITDA			390			385			431				1,515				332				375			391				417
			Q3 '16			Q2 '16			Q1 '16				2015				Q4 '15				Q3 '15			Q2 '15				Q1 '15
			(In $ millions)
Advanced Engineered Materials			—			—			—				—				—				—			—				—
Consumer Specialties			1			—			—				10				10				—			—				—
Industrial Specialties			—			—			—				28				18				10			—				—
Acetyl Intermediates			—			—			—				40				1				—			39				—
Other Activities(2)			—			—			—				—				—				—			—				—
Accelerated depreciation and amortization expense			1			—			—				78				29				10			39				—
Depreciation and amortization expense(1)			71			73			73				279				76				70			66				67
Total depreciation and amortization expense			72			73			73				357				105				80			105				67

______________________________
(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 '16						Q2 '16						Q1 '16						2015						Q4 '15						Q3 '15						Q2 '15						Q1 '15
			(In $ millions, except percentages)
Operating Profit (Loss) / Operating Margin
Materials Solutions			161			27.3	%		162			27.0	%		166			27.9	%		497			21.7	%		97			17.4	%		135			23.6	%		144			24.2	%		121			21.2	%
Acetyl Chain(1)			108			14.2	%		107			13.7	%		145			17.3	%		69			2.0	%		(246	)		(30.3	)%		73			8.4	%		82			9.0	%		160			17.6	%
Other Activities(2)			(23	)					(26	)					(24	)					(240	)					(156	)					(22	)					(38	)					(24	)
Total			246			18.6	%		243			18.0	%		287			20.4	%		326			5.7	%		(305	)		(22.9	)%		186			13.2	%		188			12.7	%		257			17.7	%
Less: Net Earnings (Loss) Attributable to NCI(1)			1						2						2						(19	)					(3	)					(10	)					(4	)					(2	)
Operating Profit (Loss) Attributable to Celanese Corporation			245			18.5	%		241			17.8	%		285			20.3	%		345			6.1	%		(302	)		(22.6	)%		196			13.9	%		192			13.0	%		259			17.9	%
Operating Profit (Loss) / Operating Margin Attributable to Celanese Corporation
Advanced Engineered Materials			93			25.5	%		82			22.5	%		88			25.1	%		235			17.7	%		51			16.4	%		58			17.8	%		67			19.4	%		59			17.2	%
Consumer Specialties			68			30.2	%		80			34.0	%		78			32.0	%		262			27.0	%		46			18.7	%		77			31.2	%		77			30.9	%		62			27.3	%
Total Materials Solutions			161			27.3	%		162			27.0	%		166			27.9	%		497			21.7	%		97			17.4	%		135			23.6	%		144			24.2	%		121			21.2	%
Industrial Specialties			25			10.2	%		29			11.1	%		31			12.3	%		72			6.7	%		(4	)		(1.7	)%		19			6.9	%		28			9.8	%		29			10.3	%
Acetyl Intermediates(1)			82			13.9	%		75			12.7	%		112			16.9	%		16			0.6	%		(239	)		(37.1	)%		64			9.4	%		58			8.2	%		133			18.7	%
Eliminations			—						1						—						—						—						—						—						—
Total Acetyl Chain			107			14.0	%		105			13.5	%		143			17.0	%		88			2.5	%		(243	)		(29.9	)%		83			9.5	%		86			9.4	%		162			17.8	%
Other Activities(2)			(23	)					(26	)					(24	)					(240	)					(156	)					(22	)					(38	)					(24	)
Total			245			18.5	%		241			17.8	%		285			20.3	%		345			6.1	%		(302	)		(22.6	)%		196			13.9	%		192			13.0	%		259			17.9	%
Equity Earnings, Cost-Dividend Income, Other Income (Expense) Attributable to Celanese Corporation
Advanced Engineered Materials			33						27						31						151						33						44		(3		)		31						43
Consumer Specialties			27						28						28						108						27						26						27						28
Total Materials Solutions			60						55						59						259						60						70						58						71
Industrial Specialties			—						—						—						—						—						—						—						—
Acetyl Intermediates			1						2						2						7						3						2						1						1
Total Acetyl Chain			1						2						2						7						3						2						1						1
Other Activities(2)			6						5						4						14						5						(4	)					9						4
Total			67						62						65						280						68						68						68						76
Certain Items Attributable to Celanese Corporation (Table 8)
Advanced Engineered Materials			1						2						1						11						1						4						4						2
Consumer Specialties			3						—						—						41						36						2						1						2
Total Materials Solutions			4						2						1						52						37						6						5						4
Industrial Specialties			—						1						2						38						26						9						2						1
Acetyl Intermediates			1						3						1						365						296						18						48						3
Total Acetyl Chain			1						4						3						403						322						27						50						4
Other Activities(2)			2						3						4						156						131						8						10						7
Total			7						9						8						611						490						41						65						15
Adjusted EBIT / Adjusted EBIT Margin
Advanced Engineered Materials			127			34.8	%		111			30.4	%		120			34.3	%		397			29.9	%		85			27.3	%		106			32.5	%		102			29.5	%		104			30.3	%
Consumer Specialties			98			43.6	%		108			46.0	%		106			43.4	%		411			42.4	%		109			44.3	%		105			42.5	%		105			42.2	%		92			40.5	%
Total Materials Solutions			225			38.1	%		219			36.5	%		226			38.0	%		808			35.2	%		194			34.8	%		211			36.8	%		207			34.8	%		196			34.4	%
Industrial Specialties			25			10.2	%		30			11.5	%		33			13.0	%		110			10.2	%		22			9.2	%		28			10.2	%		30			10.5	%		30			10.6	%
Acetyl Intermediates			84			14.3	%		80			13.5	%		115			17.3	%		388			14.1	%		60			9.3	%		84			12.4	%		107			15.1	%		137			19.2	%
Eliminations			—						1						—						—						—						—						—						—
Total Acetyl Chain			109			14.3	%		111			14.2	%		148			17.6	%		498			14.2	%		82			10.1	%		112			12.8	%		137			15.0	%		167			18.4	%
Other Activities(2)			(15	)					(18	)					(16	)					(70	)					(20	)					(18	)					(19	)					(13	)
Total			319			24.1	%		312			23.1	%		358			25.5	%		1,236			21.8	%		256			19.2	%		305			21.6	%		325			22.0	%		350			24.1	%

___________________________
(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).
(3)		Includes $43 million of Equity in net earnings (loss) of affiliates and $1 million of Other income.

Table 2 - Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited (cont.)
			Q3 '16						Q2 '16						Q1 '16						2015						Q4 '15						Q3 '15						Q2 '15						Q1 '15
			(In $ millions, except percentages)
Depreciation and Amortization Expense(1)
Advanced Engineered Materials			22						25						24						99						24						26						24						25
Consumer Specialties			11						11						11						50						12						15						12						11
Total Materials Solutions			33						36						35						149						36						41						36						36
Industrial Specialties			9						8						8						36						7						10						9						10
Acetyl Intermediates			27						27						27						83						29						17						18						19
Total Acetyl Chain			36						35						35						119						36						27						27						29
Other Activities(2)			2						2						3						11						4						2						3						2
Total			71						73						73						279						76						70						66						67
Operating EBITDA / Operating EBITDA Margin
Advanced Engineered Materials			149			40.8	%		136			37.3	%		144			41.1	%		496			37.4	%		109			35.0	%		132			40.5	%		126			36.4	%		129			37.6	%
Consumer Specialties			109			48.4	%		119			50.6	%		117			48.0	%		461			47.6	%		121			49.2	%		120			48.6	%		117			47.0	%		103			45.4	%
Total Materials Solutions			258			43.7	%		255			42.5	%		261			43.9	%		957			41.7	%		230			41.3	%		252			44.0	%		243			40.8	%		232			40.7	%
Industrial Specialties			34			13.9	%		38			14.5	%		41			16.2	%		146			13.5	%		29			12.1	%		38			13.9	%		39			13.6	%		40			14.2	%
Acetyl Intermediates			111			18.8	%		107			18.1	%		142			21.4	%		471			17.2	%		89			13.8	%		101			14.9	%		125			17.7	%		156			21.9	%
Eliminations			—						1						—						—						—						—						—						—
Total Acetyl Chain			145			19.0	%		146			18.7	%		183			21.8	%		617			17.6	%		118			14.5	%		139			15.9	%		164			18.0	%		196			21.6	%
Other Activities(2)			(13	)					(16	)					(13	)					(59	)					(16	)					(16	)					(16	)					(11	)
Total			390			29.5	%		385			28.5	%		431			30.7	%		1,515			26.7	%		332			24.9	%		375			26.5	%		391			26.5	%		417			28.8	%

___________________________
(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 '16					Q2 '16					Q1 '16					2015					Q4 '15						Q3 '15					Q2 '15					Q1 '15
												per share					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									265			1.83		221			1.50		256			1.73		306			2.01		(298	)		(2.03	)		161			1.07		207			1.34		236			1.53
Income tax provision (benefit)									15					52					60					201					31						74					24					72
Earnings (loss) from continuing operations before tax									280					273					316					507					(267	)					235					231					308
Certain Items attributable to Celanese Corporation (Table 8)									7					9					8					611					490						41					65					15
Refinancing and related expenses									4					—					2					—					—						—					—					—
Adjusted earnings (loss) from continuing operations before tax									291					282					326					1,118					223						276					296					323
Income tax (provision) benefit on adjusted earnings(1)									(49	)				(48	)				(55	)				(201	)				(40	)					(50	)				(53	)				(58	)
Adjusted earnings (loss) from continuing operations(2)									242			1.67		234			1.59		271			1.83		917			6.02		183			1.25			226			1.50		243			1.58		265			1.72
									Diluted shares (in millions)(3)
Weighted average shares outstanding									144.0					146.5					147.4					150.8					146.9						149.8					153.5					153.2
Incremental shares attributable to equity awards									0.6					0.6					0.7					1.5					—						1.2					0.5					0.7
Total diluted shares									144.6					147.1					148.1					152.3					146.9						151.0					154.0					153.9
______________________________
(1) Calculated using adjusted effective tax rates (Table 3a) as follows:
									Q3 '16					Q2 '16					Q1 '16					2015					Q4 '15						Q3 '15					Q2 '15					Q1 '15
									(In percentages)
Adjusted effective tax rate									17					17					17					18					18						18					18					18
(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
Q4 '15 & 2015		(2.5	)%		7.8	%
(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
			2016			2015
			(In percentages)
US GAAP effective tax rate			16			41
Discrete quarterly recognition of GAAP items(1)			2			2
Tax impact of other charges and adjustments			—			(15	)
Utilization of foreign tax credits			—			(2	)
Changes in valuation allowances, excluding impact of other charges and adjustments			(2	)		(5	)
Other(2)			1			(3	)
Adjusted tax rate			17			18

______________________________
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)		Tax impacts related to full-year forecasted tax opportunities and related costs.

Table 4
Net Sales by Segment - Unaudited
					Q3 '16			Q2 '16			Q1 '16			2015			Q4 '15			Q3 '15			Q2 '15			Q1 '15
					(In $ millions)
Advanced Engineered Materials					365			365			350			1,326			311			326			346			343
Consumer Specialties					225			235			244			969			246			247			249			227
Total Materials Solutions					590			600			594			2,295			557			573			595			570
Industrial Specialties					245			262			253			1,082			239			274			287			282
Acetyl Intermediates					589			592			663			2,744			644			680			707			713
Eliminations(1)					(71	)		(74	)		(76	)		(323	)		(71	)		(82	)		(83	)		(87	)
Total Acetyl Chain					763			780			840			3,503			812			872			911			908
Other Activities(2)					—			—			—			—			—			—			—			—
Intersegment eliminations(1)					(30	)		(29	)		(30	)		(124	)		(35	)		(32	)		(29	)		(28	)
Net sales					1,323			1,351			1,404			5,674			1,334			1,413			1,477			1,450
___________________________
(1)		Includes intersegment sales as follows:
					Q3 '16			Q2 '16			Q1 '16			2015			Q4 '15			Q3 '15			Q2 '15			Q1 '15
					(In $ millions)
		Industrial Specialties			(1	)		(1	)		—			—			—			—			—			—
		Acetyl Intermediates			(100	)		(102	)		(106	)		(447	)		(106	)		(114	)		(112	)		(115	)
		Intersegment eliminations			(101	)		(103	)		(106	)		(447	)		(106	)		(114	)		(112	)		(115	)
(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, 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	)

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

Three Months Ended December 31, 2015 Compared to Three Months Ended September 30, 2015
			Volume			Price			Currency			Other		Total
			(In percentages)
Advanced Engineered Materials			(3	)		—			(1	)		—		(4	)
Consumer Specialties			(1	)		1			—			—		—
Total Materials Solutions			(3	)		—			—			—		(3	)
Industrial Specialties			(7	)		(5	)		(1	)		—		(13	)
Acetyl Intermediates			1			(7	)		(1	)		2		(5	)
Total Acetyl Chain			(2	)		(7	)		(1	)		3		(7	)
Total Company			(1	)		(4	)		(1	)		—		(6	)

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

Three Months Ended June 30, 2015 Compared to Three Months Ended March 31, 2015
			Volume			Price			Currency			Other		Total
			(In percentages)
Advanced Engineered Materials			2			—			(1	)		—		1
Consumer Specialties			11			(1	)		—			—		10
Total Materials Solutions			6			(1	)		(1	)		—		4
Industrial Specialties			6			(4	)		(1	)		—		1
Acetyl Intermediates			(1	)		1			(1	)		—		(1	)
Total Acetyl Chain			2			(1	)		(1	)		—		—
Total Company			3			(1	)		(1	)		1		2

Three Months Ended March 31, 2015 Compared to Three Months Ended December 31, 2014
			Volume			Price			Currency			Other		Total
			(In percentages)
Advanced Engineered Materials			6			2			(4	)		—		4
Consumer Specialties			(16	)		(2	)		—			—		(18	)
Total Materials Solutions			(4	)		—			(3	)		—		(7	)
Industrial Specialties			16			(4	)		(5	)		—		7
Acetyl Intermediates			1			(11	)		(3	)		—		(13	)
Total Acetyl Chain			5			(10	)		(4	)		1		(8	)
Total Company			2			(6	)		(4	)		1		(7	)

Table 4b
Factors Affecting Segment Net Sales Year Over Year - Unaudited
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	)

Three Months Ended December 31, 2015 Compared to Three Months Ended December 31, 2014
			Volume		Price		Currency		Other		Total
			(In percentages)
Advanced Engineered Materials			(2)		1		(5)		—		(6)
Consumer Specialties			(8)		(3)		(1)		—		(12)
Total Materials Solutions			(5)		(1)		(3)		—		(9)
Industrial Specialties			8		(12)		(6)		—		(10)
Acetyl Intermediates			—		(17)		(5)		1		(21)
Total Acetyl Chain			2		(17)		(5)		3		(17)
Total Company			(1)		(11)		(5)		2		(15)

Three Months Ended September 30, 2015 Compared to Three Months Ended September 30, 2014
			Volume			Price			Currency			Other		Total
			(In percentages)
Advanced Engineered Materials			(3	)		(1	)		(7	)		—		(11	)
Consumer Specialties			(10	)		(4	)		(1	)		—		(15	)
Total Materials Solutions			(7	)		(2	)		(4	)		—		(13	)
Industrial Specialties			—			(5	)		(8	)		—		(13	)
Acetyl Intermediates			(6	)		(15	)		(6	)		—		(27	)
Total Acetyl Chain			(5	)		(14	)		(7	)		2		(24	)
Total Company			(5	)		(10	)		(6	)		1		(20	)

Three Months Ended June 30, 2015 Compared to Three Months Ended June 30, 2014
			Volume		Price		Currency		Other		Total
			(In percentages)
Advanced Engineered Materials			(1)		(1)		(9)		—		(11)
Consumer Specialties			(10)		(3)		(1)		—		(14)
Total Materials Solutions			(5)		(2)		(5)		—		(12)
Industrial Specialties			(1)		(4)		(9)		—		(14)
Acetyl Intermediates			(4)		(10)		(8)		—		(22)
Total Acetyl Chain			(3)		(10)		(9)		3		(19)
Total Company			(4)		(7)		(8)		2		(17)

Three Months Ended March 31, 2015 Compared to Three Months Ended March 31, 2014
			Volume			Price			Currency			Other		Total
			(In percentages)
Advanced Engineered Materials			—			—			(8	)		—		(8	)
Consumer Specialties			(21	)		(3	)		(1	)		—		(25	)
Total Materials Solutions			(9	)		(2	)		(5	)		—		(16	)
Industrial Specialties			(4	)		3			(9	)		—		(10	)
Acetyl Intermediates			(2	)		(7	)		(6	)		—		(15	)
Total Acetyl Chain			(3	)		(5	)		(7	)		1		(14	)
Total Company			(6	)		(3	)		(7	)		1		(15	)

Table 4c
Factors Affecting Segment Net Sales Year Over Year - Unaudited
Year Ended December 31, 2015 Compared to Year Ended December 31, 2014
			Volume		Price		Currency		Other		Total
			(In percentages)
Advanced Engineered Materials			(1)		(1)		(7)		—		(9)
Consumer Specialties			(13)		(3)		(1)		—		(17)
Total Materials Solutions			(6)		(2)		(4)		—		(12)
Industrial Specialties			—		(4)		(8)		—		(12)
Acetyl Intermediates			(3)		(13)		(6)		—		(22)
Total Acetyl Chain			(3)		(11)		(7)		2		(19)
Total Company			(4)		(8)		(6)		1		(17)

Table 5
Free Cash Flow - Reconciliation of a Non-GAAP Measure - Unaudited
			Q3 '16			Q2 '16			Q1 '16			2015			Q4 '15			Q3 '15			Q2 '15			Q1 '15
			(In $ millions)
Net cash provided by (used in) investing activities			(54	)		(63	)		(75	)		(558	)		(97	)		(107	)		(181	)		(173	)
Net cash provided by (used in) financing activities			265			(259	)		(473	)		(66	)		(2	)		(99	)		18			17
Net cash provided by (used in) operating activities			304			349			287			862			136			173			283			270
Capital expenditures on property, plant and equipment			(58	)		(58	)		(70	)		(520	)		(89	)		(104	)		(165	)		(162	)
Capital (distributions to) contributions from NCI			(9	)		(6	)		—			214			27			32			75			80
Free cash flow(1)(2)			237			285			217			556			74			101			193			188

______________________________
(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 $56 million and $25 million for the years ending December 31, 2016 and 2015, respectively.

Table 6
Cash Dividends Received - Unaudited
			Q3 '16		Q2 '16		Q1 '16			2015			Q4 '15		Q3 '15		Q2 '15		Q1 '15
			(In $ millions)
Dividends from equity method investments			6		73		37			176			54		5		29		88
Dividends from cost method investments			26		29		27			107			27		26		26		28
Total			32		102		64			283			81		31		55		116

Table 7
Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited
			Q3 '16			Q2 '16			Q1 '16			2015			Q4 '15			Q3 '15			Q2 '15			Q1 '15
			(In $ millions)
Short-term borrowings and current installments of long-term debt - third party and affiliates			92			119			116			513			513			463			123			128
Long-term debt, net of unamortized deferred financing costs			2,923			2,464			2,487			2,468			2,468			2,522			2,532			2,515
Total debt			3,015			2,583			2,603			2,981			2,981			2,985			2,655			2,643
Cash and cash equivalents			(1,252	)		(735	)		(716	)		(967	)		(967	)		(952	)		(988	)		(851	)
Net debt			1,763			1,848			1,887			2,014			2,014			2,033			1,667			1,792

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 '16			Q2 '16		Q1 '16		2015		Q4 '15			Q3 '15		Q2 '15		Q1 '15		Income Statement Classification
			(In $ millions)
Employee termination benefits(1)			3			3		5		53		33			6		10		4		Other charges (gains), net
Plant/office closures			2			—		1		48		31			13		1		3		Other charges (gains), net / Cost of sales / SG&A
Singapore contract termination			—			—		—		174		174			—		—		—		Other charges (gains), net
Business optimization			1			1		2		20		4			6		5		5		Cost of sales / SG&A
Asset impairments			—			1		—		126		125			1		—		—		Other charges (gains), net
(Gain) loss on disposition of business and assets, net			(2	)		—		—		4		(1	)		—		5		—		(Gain) loss on disposition, net
Commercial disputes(2)			—			—		—		6		—			5		—		1		Cost of sales / Other charges (gains), net
Write-off of other productive assets			1			2		—		39		—			—		39		—		Cost of sales / R&D
Employee benefit plan changes			—			1		—		4		(1	)		2		1		2		Cost of sales / SG&A / R&D
Actuarial (gain) loss on pension and postretirement plans			—			—		—		127		126			—		1		—		Cost of sales / SG&A / R&D
Start-up costs(3)			1			1		—		10		(1	)		8		3		—		Cost of sales
Mergers and acquisitions			1			—		—		—		—			—		—		—		SG&A
Certain Items attributable to Celanese Corporation			7			9		8		611		490			41		65		15

______________________________
(1)		Primarily associated with site shutdown costs.
(2)		Primarily associated with litigation settlement costs.
(3)		Primarily associated with Fairway joint venture operational start-up costs.

Table 9
Return on Invested Capital (Adjusted) - Presentation of a Non-GAAP Measure - Unaudited
							2015
							(In $ millions, except percentages)
Net earnings (loss) attributable to Celanese Corporation							304
Adjusted EBIT (Table 1)							1,236
Adjusted effective tax rate (Table 3a)							18	%
Adjusted EBIT tax effected							1,014
			2015		2014		Average
			(In $ millions, except percentages)
Short-term borrowings and current installments of long-term debt - third parties and affiliates			513		137		325
Long-term debt, net of unamortized deferred financing costs			2,468		2,586		2,527
Celanese Corporation stockholders' equity			2,378		2,818		2,598
Invested capital							5,450
Return on invested capital (adjusted)							18.6	%
Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital							5.6	%

View source version on businesswire.com: http://www.businesswire.com/news/home/20161017006412/en/

Celanese Corporation
Investor Relations
Chuck Kyrish, +1-972-443-4574
Chuck.Kyrish@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
J.Kurth@celanese.com

Source: Celanese Corporation