0001306830-23-000156 8-K 17 20231106 2.02 9.01 20231106 20231106 Celanese Corp 0001306830 2820 980420726 DE 1231 8-K 34 001-32410 231380847 222 W. LAS COLINAS BLVD., SUITE 900N IRVING TX 75039-5421 972-443-4000 222 W. LAS COLINAS BLVD., SUITE 900N IRVING TX 75039-5421 Celanese CORP 20041102 Blackstone Crystal Holdings Capital Partners (Cayman) IV Ltd. 20041022 8-K 1 ce-20231106.htm 8-K 0001306830false00013068302023-11-062023-11-060001306830us-gaap:CommonStockMember2023-11-062023-11-060001306830ce:EURSeniorUnsecuredNotesDue2025Member2023-11-062023-11-060001306830ce:EURSeniorUnsecuredNotesDue2026Member2023-11-062023-11-060001306830ce:EURSeniorUnsecuredNotesDue2027Member2023-11-062023-11-060001306830ce:EURSeniorUnsecuredNotesDue2028Member2023-11-062023-11-060001306830ce:EURSeniorUnsecuredNotesDue2029Member2023-11-062023-11-06 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): November 6, 2023 CELANESE CORPORATION (Exact name of registrant as specified in its charter) Delaware 001-32410 98-0420726 (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification No.) 222 West Las Colinas Blvd. Suite 900N, Irving, TX 75039 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (972) 443-4000 N/A (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): ? Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ? Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ? Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ? Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Name of Each Exchange on Which Title of Each Class Trading Symbol(s) Registered Common Stock, par value $0.0001 per CE The New York Stock Exchange share 1.250% Senior Notes due 2025 CE /25 The New York Stock Exchange 4.777% Senior Notes due 2026 CE /26A The New York Stock Exchange 2.125% Senior Notes due 2027 CE /27 The New York Stock Exchange 0.625% Senior Notes due 2028 CE /28 The New York Stock Exchange 5.337% Senior Notes due 2029 CE /29A The New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934. Emerging growth company ? If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ? 1 -------------------------------------------------------------------------------- Item 2.02 Results of Operations and Financial Condition On November 6, 2023, Celanese Corporation (the "Company") issued a press release reporting the financial results for its third quarter of 2023. A copy of the press release is attached to this Current Report on Form 8-K ("Current Report") as Exhibit 99.1 and is incorporated herein solely for purposes of this Item 2.02 disclosure. Each Non-US GAAP financial measure appearing in the press release is accompanied by the most directly comparable US GAAP financial measure and is reconciled to the most comparable US GAAP financial measure in Exhibit 99.2, which includes other supplemental information of interest to investors, analysts and other parties, including the reasons why management believes such Non-US GAAP financial measures provide useful information to investors, and which is incorporated herein solely for purposes of this Item 2.02 disclosure. Item 9.01 Financial Statements and Exhibits (d) The following exhibits are being furnished herewith: Exhibit Number Description 99.1 Press Release dated November 6 , 2023* 99.2 Non-US GAAP Financial Measures and Supplemental Information dated November 6 , 2023* 104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document contained in Exhibit 101) * In connection with the disclosure set forth in Item 2.02, the information in this Current Report, including the exhibits attached hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of such section. The information in this Current Report, including the exhibits, shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any incorporation by reference language in any such filing. 2 -------------------------------------------------------------------------------- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CELANESE CORPORATION By: /s/ MICHAEL R. SULLIVAN Name: Michael R. Sullivan Title: Vice President, Deputy General Counsel and Assistant Corporate Secretary Date: November 6, 2023 3 EX-99.1 2 q320238-kex991.htm EX-99.1 Exhibit 99.1 [[Image Removed: picture2.jpg]] Celanese Corporation Reports Third Quarter 2023 Earnings Dallas, November 6, 2023: Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today reported third quarter 2023 GAAP diluted earnings per share of $8.70 and adjusted earnings per share of $2.50. The Company generated net sales of $2.7 billion in the quarter, a decrease of 3 percent from the prior quarter, reflecting a sequential decrease in pricing of 3 percent partially offset by a sequential increase in volume of 1 percent. Celanese reported third quarter consolidated operating profit of $842 million, adjusted EBIT of $451 million, and operating EBITDA of $624 million, at margins of 31, 17, and 23 percent, respectively. The Company has delivered sequential increases in these profitability metrics across each of the last three quarters. The difference between GAAP diluted earnings per share and adjusted earnings per share in the third quarter was primarily due to Certain Items totaling $438 million, including the gain from the formation of the Nutrinova joint venture (JV) and M&A-related costs, as well as a recorded income tax benefit of $236 million, primarily due to internal relocations of intellectual property to align with acquired operations. Celanese took actions to reduce costs, align production and inventory levels with demand, and maximize cash generation in response to unfavorable demand and competitive dynamics. As a result, the Company: •Reduced inventory balances by $177 million in the third quarter with inventory reductions across Engineered Materials and the Acetyl Chain of 7 percent and 6 percent, respectively; •Generated third quarter operating cash flow of $403 million and free cash flow of $268 million; and •Reduced net debt by $758 million in the third quarter, including a $697 million sequential decrease in debt and a $61 million sequential increase in cash. "Our third quarter performance is a reflection of our commitment to take the necessary actions to support our earnings growth and deleveraging plan in what has been a persistently challenging backdrop this year," said Lori Ryerkerk, chair and chief executive officer. "We continued to lift the earnings power of Celanese and significantly strengthened our balance sheet position in the third quarter. Across the first three quarters of 2023 we have reduced our net debt by $829 million and remain well on path to meaningfully exceed the full year objective to reduce net debt by $1 billion in 2023." 1 -------------------------------------------------------------------------------- Third Quarter 2023 Financial Highlights: Three Months Ended September 30, June 30, September 30, 2023 2023 2022 (unaudited) (In $ millions, except per share data) Net Sales Engineered Materials 1,528 1,585 929 Acetyl Chain 1,220 1,233 1,397 Intersegment Eliminations (25) (23) (25) Total 2,723 2,795 2,301 Operating Profit (Loss) Engineered Materials 691 158 114 Acetyl Chain 272 295 312 Other Activities (121) (118) (118) Total 842 335 308 Net Earnings (Loss) 949 221 193 Adjusted EBIT(1) Engineered Materials 229 205 206 Acetyl Chain 310 332 349 Other Activities (88) (93) (45) Total 451 444 510 Equity Earnings and Dividend Income, Other Income (Expense) Engineered Materials 12 20 70 Acetyl Chain 33 32 34 Operating EBITDA(1) 624 616 607 Diluted EPS - continuing operations $ 8.70 $ 2.00 $ 1.76 Diluted EPS - total $ 8.69 $ 2.01 $ 1.75 Adjusted EPS(1) $ 2.50 $ 2.17 $ 3.94 Net cash provided by (used in) investing activities 375 (163) (143) Net cash provided by (used in) financing activities (700) (447) 8,600 Net cash provided by (used in) operating activities 403 762 467 Free cash flow(1) 268 611 325 ____________________________ (1)See "Non-US GAAP Financial Measures" below. 2 -------------------------------------------------------------------------------- Recent Highlights: •Announced a series of transactions to extend the Company's debt maturity profile and lower the total effective net borrowing rate to the Company. The total value of the combined 2023, 2024, and 2025 debt maturities was significantly reduced, effectively eliminating the need to refinance any debt over the next several years. •Completed the formation of Nutrinova, a Food Ingredients JV with Mitsui & Co., Ltd.,. Celanese contributed the assets, technology, and employees of its Food Ingredients business of which Mitsui acquired a 70 percent stake at a purchase price of $503 million, including closing adjustments. •Announced the planned closure of the Company's nylon 66 (PA66) and high-performance nylon (HPN) polymerization units in Uentrop, Germany. Polymerization costs at Uentrop are the highest in the Celanese global nylon network due to energy and raw material costs in the region. The Company plans to cease PA66 and HPN polymerization at Uentrop by January 1, 2024 and February 1, 2024, respectively. •Ceased production at Engineered Materials production facilities in Campo Bom, Brazil; Berazategui, Argentina; and Wehr, Germany in September and October. Third Quarter 2023 Business Segment Overview Acetyl Chain The Acetyl Chain delivered third quarter net sales of $1.2 billion, a 1 percent decrease from the prior quarter. Third quarter volume increased by 3 percent sequentially, and pricing decreased by 3 percent sequentially and 18 percent year over year as a result of lower global industry utilization, particularly in the Western Hemisphere. The business navigated weakened pricing conditions by utilizing its commercial and supply chain optionality. Amid disruptions in acetic acid industry supply in China, the business pivoted to secure 48 percent more sequential acetic acid volume in China and captured a disproportionate share of pricing strength at the end of the third quarter. The business continued to flex its production network to align with demand, including idling the Frankfurt VAM facility for the duration of the quarter, to deliver further inventory reductions. As a result of these actions, the Acetyl Chain delivered third quarter operating profit of $272 million, adjusted EBIT of $310 million, and operating EBITDA of $365 million at margins of 22, 25, and 30 percent, respectively. The Acetyl Chain limited the sequential decline in each of these profit metrics to approximately $20 million, despite a series of sequential headwinds including margin compression in Europe, a spike in U.S. Gulf Coast electricity costs, and an unfavorable earnings impact related to inventory. In a global demand environment that remains challenged, the Acetyl Chain has demonstrated the stability and resilience of its foundational earnings across each quarter of 2023. Engineered Materials Engineered Materials reported third quarter net sales of $1.5 billion, a sequential decrease of 4 percent. Sequential volume declined by 1 percent as the impact of poor demand conditions across most end-markets was partially offset by sequential volume growth in automotive and medical. Third quarter pricing decreased by 3 percent sequentially as a result of challenging competitive dynamics across the year due to poor demand and raw material deflation. The business offset the impact of pricing and volume decreases by reducing costs, aligning production and inventory levels to demand, and pivoting to end-markets with relative demand strength. Engineered Materials reduced inventory by approximately $140 million across the third quarter and has delivered inventory reductions across the first three quarters of 2023 approaching $400 million. Engineered Materials 3 -------------------------------------------------------------------------------- delivered third quarter operating profit of $691 million, adjusted EBIT of $229 million, and operating EBITDA of $340 million at margins of 45, 15, and 22 percent, respectively. Sequential increases in these earnings metrics was supported by increased earnings contributions from Mobility & Materials (M&M) driven by volume growth and incremental synergies. Affiliate earnings decreased by $10 million sequentially, primarily driven by M&M-related affiliates. Cash Flow and Tax Celanese reported third quarter operating cash flow of $403 million and free cash flow of $268 million which included cash capital expenditures of $131 million. Celanese returned $76 million in cash to shareholders via dividends in the quarter. The effective income tax rate was a benefit of 33 percent for the third quarter compared to an expense of 40 percent for the same quarter in 2022. The lower effective rate was primarily due to the relocation of certain intangible assets to align with the acquired M&M foreign operations, differences in the tax and U.S. GAAP gain from the formation of the Nutrinova JV, decreased earnings in high taxed jurisdictions related to current demand conditions, and a decrease in valuation allowances on U.S. foreign tax credit carryforwards due to revised forecasts of foreign sourced income and expenses during the carryforward period. The effective tax rate for 2023 adjusted earnings was revised to 9 percent based on the expected jurisdictional earnings mix for the full year and consideration of other non-recurring U.S. GAAP items. Outlook "Our focus remains on sustainably lifting the earnings power of Celanese by taking decisive actions to control what we can in an operating environment that remains volatile and uncertain," said Lori Ryerkerk. "Through the organizational, production footprint, and commercial actions we take, we are supporting near-term performance and laying the groundwork for amplified earnings growth when demand returns. We are hard at work to deliver sequential growth in the earnings contributions from our businesses in the fourth quarter, despite anticipated cold weather seasonality, and to position ourselves to enter 2024 with additional momentum." Reflective of controllable actions, improvement in destocking conditions, and typical cold weather seasonality, the Company anticipates fourth quarter adjusted earnings per share of $2.10 to $2.50, inclusive of approximately $0.30 per share of M&M transaction amortization. Consequently, Celanese anticipates full year adjusted earnings per share at the lower-end of the previous $9.00 to $10.00 range, inclusive of approximately $1.20 per share of M&M transaction amortization. Reconciliations of forecasted non-GAAP measures such as adjusted earnings per share, adjusted EBIT or free cash flow to the equivalent U.S. GAAP measures (diluted earnings per share, net earnings (loss) attributable to Celanese Corporation and net cash provided by (used in) operations, respectively), are not available without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains/losses, and other items is not practical. For more information, see "Non-GAAP Financial Measures" below. The Company's prepared remarks related to the third quarter will be posted on its website at investors.celanese.com under Financial Information/Financial Document Library on November 6, 2023. Information about Non-US GAAP measures is included in a Non-US GAAP Financial Measures and Supplemental Information document posted on our investor relations website under Financial Information/Non-GAAP Financial Measures. See also "Non-GAAP Financial Measures" below. 4 -------------------------------------------------------------------------------- Contacts: Investor Relations Media - U.S. Media - Europe Brandon Ayache Brian Bianco Petra Czugler Phone: +1 972 443 8509 Phone: +1 972 443 4400 Phone: +49 69 45009 1206 brandon.ayache@celanese.com media@celanese.com petra.czugler@celanese.com Celanese Corporation is a global chemical leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Our businesses use the full breadth of Celanese's global chemistry, technology and commercial expertise to create value for our customers, employees, shareholders and the corporation. As we partner with our customers to solve their most critical business needs, we strive to make a positive impact on our communities and the world through The Celanese Foundation. Based in Dallas, Celanese employs approximately 13,000 employees worldwide and had 2022 net sales of $9.7 billion. For more information about Celanese Corporation and its product offerings, visit www.celanese.com. Forward-Looking Statements This release may contain "forward-looking statements," which include information concerning the Company's plans, objectives, goals, strategies, future revenues, cash flow, financial performance, synergies, capital expenditures, financing needs and other information that is not historical information. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company will realize these expectations or that these beliefs will prove correct. There are a number of risks and uncertainties that could cause actual results to differ materially from the results expressed or implied in the forward-looking statements contained in this release. These risks and uncertainties include, among other things: changes in general economic, business, political and regulatory conditions in the countries or regions in which we operate; volatility or changes in the price and availability of raw materials and energy, particularly changes in the demand for, supply of, and market prices of ethylene, methanol, natural gas, wood pulp and fuel oil and the prices for electricity and other energy sources; the length and depth of product and industry business cycles, particularly in the automotive, electrical, mobility, textiles, medical, electronics and construction industries; the ability to pass increases in raw material prices, logistics costs and other costs on to customers or otherwise improve margins through price increases; the accuracy or inaccuracy of our beliefs or assumptions regarding anticipated benefits of the acquisition (the "M&M Acquisition") by us of the majority of the Mobility & Materials business (the "M&M Business") of DuPont de Nemours, Inc.; the possibility that we will not be able to realize all of the anticipated improvements in the M&M Business's financial performance — including optimizing pricing, currency mix and inventory — or realize all of the anticipated benefits of the M&M Acquisition, including synergies and growth opportunities, within the anticipated timeframe, or at all, whether as a result of difficulties arising from the operation or integration of the M&M Business or other unanticipated delays, costs, inefficiencies or liabilities; increased commercial, legal or regulatory complexity of entering into, or expanding our exposure to, certain end markets and geographies; risks in the global economy and equity and credit markets and their potential impact on our ability to pay down debt in the future and/or refinance at suitable rates, in a timely manner, or at all; diversion of management's attention from ongoing business operations and opportunities and other disruption caused by the M&M Acquisition and the integration processes and their impact on our existing business and relationships; risks and costs associated with increased leverage from the M&M Acquisition, including increased interest expense and potential reduction of business and strategic flexibility; the ability to maintain plant utilization rates and to implement planned capacity additions, expansions and maintenance; 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; the ability to identify desirable potential acquisition or divestiture opportunities and to complete such transactions, including obtaining regulatory approvals, consistent with the Company's strategy; market acceptance of our products and technology; compliance and other costs and potential disruption or interruption of production or operations due to accidents, interruptions in sources of raw materials, transportation, logistics or supply chain disruptions, cybersecurity incidents, terrorism or political unrest, public health crises (including, but not limited to, the COVID-19 pandemic), 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 (such as the Russia-Ukraine conflict) or terrorist incidents or as a result of weather, natural disasters, or other crises; the ability to obtain governmental approvals and to construct facilities on terms and schedules acceptable to the Company; changes in applicable tariffs, duties and trade agreements, tax rates or legislation throughout the world including, but not limited to, adjustments, changes in estimates or interpretations or the resolution of tax examinations or audits that may impact recorded or future tax impacts and potential regulatory and legislative tax developments in the United States and other jurisdictions; changes in the degree of intellectual property and other legal protection afforded to our products or technologies, or the theft of such intellectual property; potential liability for remedial actions and increased costs under existing or future environmental, health and safety regulations, including those relating to climate change or other sustainability matters; potential liability resulting from pending or future claims or litigation, including investigations or enforcement actions, or from changes in the laws, regulations or policies of governments or other governmental activities in the countries in which we operate; changes in currency exchange rates and interest rates; our level of indebtedness, which could diminish our ability to raise additional capital to fund operations or limit our ability to react to changes in the economy or the chemicals industry; tax rates and changes thereto; our ability to obtain regulatory approval for, and satisfy closing conditions to, any transactions described herein that have not closed; 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 two business segments, Engineered Materials and the Acetyl Chain. Use of Non-US GAAP Financial Information This release uses the following Non-US GAAP measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA, operating EBITDA margin, 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 operating EBITDA 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. 5 -------------------------------------------------------------------------------- Definitions of Non-US GAAP Financial Measures •Adjusted EBIT is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense and taxes, and further adjusted for Certain Items (refer to Table 8 of our Non-US GAAP Financial Measures and Supplemental Information document). We do not provide reconciliations for adjusted EBIT on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Adjusted EBIT margin is defined by the Company as adjusted EBIT divided by net sales. •Operating EBITDA is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense, taxes and depreciation and amortization, and further adjusted for Certain Items, which Certain Items include accelerated depreciation and amortization expense. Operating EBITDA is equal to adjusted EBIT plus depreciation and amortization. Operating EBITDA margin is defined by the Company as operating EBITDA divided by net sales. •Adjusted earnings per share is a performance measure used by the Company and is defined by the Company as earnings (loss) from continuing operations attributable to Celanese Corporation, adjusted for income tax (provision) benefit, Certain Items, and refinancing and related expenses, divided by the number of basic common shares and dilutive restricted stock units and stock options calculated using the treasury method. We do not provide reconciliations for adjusted earnings per share on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Note: The income tax expense (benefit) on Certain Items ("Non-GAAP adjustments") is determined using the applicable rates in the taxing jurisdictions in which the Non-GAAP adjustments occurred and includes both current and deferred income tax expense (benefit). The income tax rate used for adjusted earnings per share approximates the midpoint in a range of forecasted tax rates for the year. This range may include certain partial or full-year forecasted tax opportunities and related costs, where applicable, and specifically excludes changes in uncertain tax positions, discrete recognition of GAAP items on a quarterly basis, other pre-tax items adjusted out of our GAAP earnings for adjusted earnings per share purposes and changes in management's assessments regarding the ability to realize deferred tax assets for GAAP. In determining the adjusted earnings per share tax rate, we reflect the impact of foreign tax credits when utilized, or expected to be utilized, absent discrete events impacting the timing of foreign tax credit utilization. We analyze this rate quarterly and adjust it if there is a material change in the range of forecasted tax rates; an updated forecast would not necessarily result in a change to our tax rate used for adjusted earnings per share. The adjusted tax rate is an estimate and may differ from the actual tax rate used for GAAP reporting in any given reporting period. Table 3a of our Non-US GAAP Financial Measures and Supplemental Information document summarizes the reconciliation of our estimated GAAP effective tax rate to the adjusted tax rate. The estimated GAAP rate excludes discrete recognition of GAAP items due to our inability to forecast such items. As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate to the adjusted tax rate for actual results. •Free cash flow is a liquidity measure used by the Company and is defined by the Company as net cash provided by (used in) operations, less capital expenditures on property, plant and equipment, and adjusted for contributions from or distributions to our noncontrolling interest joint ventures. We do not provide reconciliations for free cash flow on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of items such as working capital changes, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. 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 November 6, 2023 and also available on our website at investors.celanese.com under Financial Information/Financial Document Library. Results Unaudited The results in this document, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management. Quarterly results should not be taken as an indication of the results of operations to be reported for any subsequent period or for the full fiscal year. Supplemental Information Additional information about our prior period performance is included in our Quarterly Reports on Form 10-Q and in our Non-US GAAP Financial Measures and Supplemental Information document. 6 -------------------------------------------------------------------------------- Consolidated Statements of Operations - Unaudited Three Months Ended September 30, June 30, September 30, 2023 2023 2022 (In $ millions, except share and per share data) Net sales 2,723 2,795 2,301 Cost of sales (2,050) (2,109) (1,755) Gross profit 673 686 546 Selling, general and administrative expenses (244) (274) (184) Amortization of intangible assets (41) (42) (10) Research and development expenses (32) (40) (25) Other (charges) gains, net (17) (10) (15) Foreign exchange gain (loss), net — 15 (2) Gain (loss) on disposition of businesses and assets, net 503 — (2) Operating profit (loss) 842 335 308 Equity in net earnings (loss) of affiliates 12 23 73 Non-operating pension and other postretirement employee benefit (expense) income (1) (2) 25 Interest expense (178) (182) (154) Refinancing expense (7) — — Interest income 12 7 34 Dividend income - equity investments 30 31 30 Other income (expense), net 4 4 5 Earnings (loss) from continuing operations before tax 714 216 321 Income tax (provision) benefit 236 4 (127) Earnings (loss) from continuing operations 950 220 194 Earnings (loss) from operation of discontinued operations (1) — — Income tax (provision) benefit from discontinued operations — 1 (1) Earnings (loss) from discontinued operations (1) 1 (1) Net earnings (loss) 949 221 193 Net (earnings) loss attributable to noncontrolling interests 2 (1) (2) Net earnings (loss) attributable to Celanese Corporation 951 220 191 Amounts attributable to Celanese Corporation Earnings (loss) from continuing operations 952 219 192 Earnings (loss) from discontinued operations (1) 1 (1) Net earnings (loss) 951 220 191 Earnings (loss) per common share - basic Continuing operations 8.74 2.01 1.77 Discontinued operations (0.01) 0.01 (0.01) Net earnings (loss) - basic 8.73 2.02 1.76 Earnings (loss) per common share - diluted Continuing operations 8.70 2.00 1.76 Discontinued operations (0.01) 0.01 (0.01) Net earnings (loss) - diluted 8.69 2.01 1.75 Weighted average shares (in millions) Basic 108.9 108.9 108.4 Diluted 109.4 109.3 109.1 7 -------------------------------------------------------------------------------- Consolidated Balance Sheets - Unaudited As of As of September 30, December 31, 2023 2022 (In $ millions) ASSETS Current Assets Cash and cash equivalents 1,357 1,508 Trade receivables - third party and affiliates, net 1,339 1,379 Non-trade receivables, net 570 675 Inventories 2,337 2,808 Other assets 284 241 Total current assets 5,887 6,611 Investments in affiliates 1,245 1,062 Property, plant and equipment, net 5,467 5,584 Operating lease right-of-use assets 395 413 Deferred income taxes 1,074 808 Other assets 535 547 Goodwill 6,991 7,142 Intangible assets, net 3,944 4,105 Total assets 25,538 26,272 LIABILITIES AND EQUITY Current Liabilities Short-term borrowings and current installments of long-term debt - third party and affiliates 1,408 1,306 Trade payables - third party and affiliates 1,263 1,518 Other liabilities 927 1,201 Income taxes payable 18 43 Total current liabilities 3,616 4,068 Long-term debt, net of unamortized deferred financing costs 12,291 13,373 Deferred income taxes 1,223 1,242 Uncertain tax positions 276 322 Benefit obligations 396 411 Operating lease liabilities 334 364 Other liabilities 453 387 Commitments and Contingencies Stockholders' Equity Treasury stock, at cost (5,490) (5,491) Additional paid-in capital 386 372 Retained earnings 12,308 11,274 Accumulated other comprehensive income (loss), net (713) (518) Total Celanese Corporation stockholders' equity 6,491 5,637 Noncontrolling interests 458 468 Total equity 6,949 6,105 Total liabilities and equity 25,538 26,272 8 EX-99.2 3 q320238-kex992.htm EX-99.2 [[Image Removed: celogo.jpg]] Exhibit 99.2 Non-US GAAP Financial Measures and Supplemental Information November 6, 2023 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 two business segments, Engineered Materials and the Acetyl Chain. Use of Non-US GAAP Financial Measures From time to time, management may publicly disclose certain numerical "non-GAAP financial measures" in the course of our earnings releases, financial presentations, earnings conference calls, investor and analyst meetings and otherwise. For these purposes, the Securities and Exchange Commission ("SEC") defines a "non-GAAP financial measure" as a numerical measure of historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that effectively exclude amounts, included in the most directly comparable measure calculated and presented in accordance with US GAAP, and vice versa for measures that include amounts, or are subject to adjustments that effectively include amounts, that are excluded from the most directly comparable US GAAP measure so calculated and presented. For these purposes, "GAAP" refers to generally accepted accounting principles in the United States. Non-GAAP financial measures disclosed by management are provided as additional information to investors, analysts and other parties because the Company believes them to be important supplemental measures for assessing our financial and operating results and as a means to evaluate our financial condition and period-to-period comparisons. These non-GAAP financial measures should be viewed as supplemental to, and should not be considered in isolation or as alternatives to, net earnings (loss), operating profit (loss), operating margin, cash flow from operating activities (together with cash flow from investing and financing activities), earnings per share or any other US GAAP financial measure. These non-GAAP financial measures should be considered within the context of our complete audited and unaudited financial results for the given period, which are available on the Financial Information/Financial Document Library page of our website, investors.celanese.com. The definition and method of calculation of the non-GAAP financial measures used herein may be different from other companies' methods for calculating measures with the same or similar titles. Investors, analysts and other parties should understand how another company calculates such non-GAAP financial measures before comparing the other company's non-GAAP financial measures to any of our own. These non-GAAP financial measures may not be indicative of the historical operating results of the Company nor are they intended to be predictive or projections of future results. Pursuant to the requirements of SEC Regulation G, whenever we refer to a non-GAAP financial measure, we will also present in this document, in the presentation itself or on a Form 8-K in connection with the presentation on the Financial Information/Financial Document Library page of our website, investors.celanese.com, to the extent practicable, the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure. This document includes definitions and reconciliations of non-GAAP financial measures used from time to time by the Company. Specific Measures Used This document provides information about the following non-GAAP measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA, operating EBITDA margin, operating profit (loss) attributable to Celanese Corporation, adjusted earnings per share, net debt, free cash flow and return on invested capital (adjusted). The most directly comparable financial measure presented in accordance with US GAAP in our consolidated financial statements for adjusted EBIT and operating EBITDA is net earnings (loss) attributable to Celanese Corporation; for adjusted EBIT margin and operating EBITDA margin is operating margin; for operating profit (loss) attributable to Celanese Corporation is operating profit (loss); for adjusted earnings per share is earnings (loss) from continuing operations attributable to Celanese Corporation per common share-diluted; for net debt 1 -------------------------------------------------------------------------------- [[Image Removed: celogo.jpg]] is total debt; for free cash flow is net cash provided by (used in) operations; and for return on invested capital (adjusted) is net earnings (loss) attributable to Celanese Corporation divided by the sum of the average of beginning and end of the year short- and long-term debt and Celanese Corporation stockholders' equity. Definitions •Adjusted EBIT is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense and taxes, and further adjusted for Certain Items (refer to Table 8 ). We believe that adjusted EBIT provides transparent and useful information to management, investors, analysts and other parties in evaluating and assessing our primary operating results from period-to-period after removing the impact of unusual, non-operational or restructuring-related activities that affect comparability. Our management recognizes that adjusted EBIT has inherent limitations because of the excluded items. Adjusted EBIT is one of the measures management uses for planning and budgeting, monitoring and evaluating financial and operating results and as a performance metric in the Company's incentive compensation plan. We do not provide reconciliations for adjusted EBIT on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Adjusted EBIT margin is defined by the Company as adjusted EBIT divided by net sales. Adjusted EBIT margin has the same uses and limitations as Adjusted EBIT. •Operating EBITDA is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense, taxes and depreciation and amortization, and further adjusted for Certain Items, which Certain Items include accelerated depreciation and amortization expense. Operating EBITDA is equal to adjusted EBIT plus depreciation and amortization. We believe that Operating EBITDA provides transparent and useful information to investors, analysts and other parties in evaluating our operating performance relative to our peer companies. Operating EBITDA margin is defined by the Company as Operating EBITDA divided by net sales. Operating EBITDA margin has the same uses and limitations as Operating EBITDA. •Operating profit (loss) attributable to Celanese Corporation is defined by the Company as operating profit (loss), less earnings (loss) attributable to noncontrolling interests ("NCI"). We believe that operating profit (loss) attributable to Celanese Corporation provides transparent and useful information to management, investors, analysts and other parties in evaluating our core operational performance. Operating margin attributable to Celanese Corporation is defined by the Company as operating profit (loss) attributable to Celanese Corporation divided by net sales. Operating margin attributable to Celanese Corporation has the same uses and limitations as Operating profit (loss) attributable to Celanese Corporation. •Adjusted earnings per share is a performance measure used by the Company and is defined by the Company as earnings (loss) from continuing operations attributable to Celanese Corporation, adjusted for income tax (provision) benefit, Certain Items, and refinancing and related expenses, divided by the number of basic common shares and dilutive restricted stock units and stock options calculated using the treasury method. We believe that adjusted earnings per share provides transparent and useful information to management, investors, analysts and other parties in evaluating and assessing our primary operating results from period-to-period after removing the impact of the above stated items that affect comparability and as a performance metric in the Company's incentive compensation plan. We do not provide reconciliations for adjusted earnings per share on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Note: The income tax expense (benefit) on Certain Items ("Non-GAAP adjustments") is determined using the applicable rates in the taxing jurisdictions in which the Non-GAAP adjustments occurred and includes both current and deferred income tax expense (benefit). The income tax rate used for adjusted earnings per share approximates the midpoint in a range of forecasted tax rates for the year. This range may include certain partial or full-year forecasted tax opportunities and related costs, where applicable, and specifically excludes changes in uncertain tax positions, discrete recognition of GAAP items on a quarterly basis, other pre-tax items adjusted out of our GAAP earnings for adjusted earnings per share purposes and changes in management's assessments regarding the ability to realize deferred tax assets for GAAP. In determining the adjusted earnings per share tax rate, we reflect the impact of foreign tax credits when utilized, or expected to be utilized, absent discrete events impacting the timing of foreign tax credit utilization. We analyze this rate quarterly and adjust it if there is a material change in the range of forecasted tax rates; an updated forecast would not necessarily result in a change to our tax rate used for adjusted earnings per share. The adjusted tax rate is an estimate and may differ from the actual tax rate used for GAAP reporting in any given reporting period. Table 3a summarizes the reconciliation of our estimated GAAP effective tax rate to the adjusted tax rate. The estimated GAAP rate excludes discrete recognition of GAAP items due to our inability to forecast such items. As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate to the adjusted tax rate for actual results. 2 -------------------------------------------------------------------------------- [[Image Removed: celogo.jpg]] •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 contributions from or distributions to our NCI joint ventures. We believe that free cash flow provides useful information to management, investors, analysts and other parties in evaluating the Company's liquidity and credit quality assessment because it provides an indication of the long-term cash generating ability of our business. Although we use free cash flow as a measure to assess the liquidity generated by our business, the use of free cash flow has important limitations, including that free cash flow does not reflect the cash requirements necessary to service our indebtedness, lease obligations, unconditional purchase obligations or pension and postretirement funding obligations. Free cash flow is not a measure of cash available for discretionary expenditures since the Company has certain debt service and finance lease payments that are not deducted from that measure. We do not provide reconciliations for free cash flow on a forward-looking basis when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of items such as working capital changes, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. •Net debt is defined by the Company as total debt less cash and cash equivalents. We believe that net debt provides useful information to management, investors, analysts and other parties in evaluating changes to the Company's capital structure and credit quality assessment. •Return on invested capital (adjusted) is defined by the Company as adjusted EBIT, tax effected using the adjusted tax rate, divided by the sum of the average of beginning and end of the year short- and long-term debt and Celanese Corporation stockholders' equity. We believe that return on invested capital (adjusted) provides useful information to management, investors, analysts and other parties in order to assess our income generation from the point of view of our stockholders and creditors who provide us with capital in the form of equity and debt and whether capital invested in the Company yields competitive returns. Supplemental Information Supplemental Information we believe to be of interest to investors, analysts and other parties includes the following: •Net sales for each of our business segments and the percentage increase or decrease in net sales attributable to price, volume, currency and other factors for each of our business segments. •Cash dividends received from our equity investments. •For those consolidated ventures in which the Company owns or is exposed to less than 100% of the economics, the outside stockholders' interests are shown as NCI. 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. 3 -------------------------------------------------------------------------------- [[Image Removed: celogo.jpg]] Table 1 Celanese Adjusted EBIT and Operating EBITDA - Reconciliation of Non-GAAP Measures - Unaudited Q3 '23 Q2 '23 Q1 '23 2022 Q4 '22 Q3 '22 Q2 '22 Q1 '22 (In $ millions) Net earnings (loss) attributable to Celanese Corporation 951 220 91 1,894 767 191 434 502 (Earnings) loss from discontinued operations 1 (1) 3 8 1 1 6 — Interest income (12) (7) (8) (69) (33) (34) (1) (1) Interest expense 178 182 182 405 168 154 48 35 Refinancing expense 7 — — — — — — — Income tax provision (benefit) (236) (4) 25 (489) (840) 127 112 112 Certain Items attributable to Celanese Corporation ( Table 8 ) (438) 54 131 422 239 71 47 65 Adjusted EBIT 451 444 424 2,171 302 510 646 713 Depreciation and amortization expense(1) 173 172 172 446 151 97 98 100 Operating EBITDA 624 616 596 2,617 453 607 744 813 Q3 '23 Q2 '23 Q1 '23 2022 Q4 '22 Q3 '22 Q2 '22 Q1 '22 (In $ millions) Engineered Materials — — — 13 2 3 4 4 Acetyl Chain — — — 2 — — — 2 Other Activities(2) — — — 1 — — 1 — Accelerated depreciation and amortization expense — — — 16 2 3 5 6 Depreciation and amortization expense(1) 173 172 172 446 151 97 98 100 Total depreciation and amortization expense 173 172 172 462 153 100 103 106 ______________________________ (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, 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). 4 -------------------------------------------------------------------------------- [[Image Removed: celogo.jpg]] Table 1a M&M Adjusted EBIT and Operating EBITDA - Reconciliation of Non-GAAP Measures - Unaudited Q3 '23 Q2 '23 Q1 '23 Q4 '22 (In $ millions) Net earnings (loss) attributable to M&M 47 47 (48) (69) (3) Income tax provision (benefit) 10 (1) 13 6 Certain Items(1) 17 18 86 72 Adjusted EBIT 74 64 51 9 Depreciation and amortization expense 70 68 68 47 Operating EBITDA(2) 144 132 119 56 (4) ______________________________ (1)Amount is included within total Certain Items shown in Table 8 . (2)Excludes $(19) million, $(23) million, $(23) million and $(17) million of Operating EBITDA included in Other Activities for the three months ended September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, respectively. (3)Excludes $30 million of Net loss for the month ended October 31, 2022, prior to our acquisition of the majority of the Mobility & Materials business ("M&M Business") of DuPont de Nemours, Inc. (4)Excludes $22 million of Operating EBITDA for the month ended October 31, 2022, prior to our acquisition of the M&M Business. 5 -------------------------------------------------------------------------------- Table 2 - Supplemental Segment Data and Reconciliation of Segment [[Image Removed: celogo.jpg]] Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited Q3 '23 Q2 '23 Q1 '23 2022 Q4 '22 Q3 '22 Q2 '22 Q1 '22 (In $ millions, except percentages) Operating Profit (Loss) / Operating Margin Engineered Materials 691 45.2 % 158 10.0 % 112 6.9 % 429 10.7 % 25 2.0 % 114 12.3 % 166 17.5 % 124 13.6 % Acetyl Chain 272 22.3 % 295 23.9 % 278 22.2 % 1,447 25.2 % 204 18.0 % 312 22.3 % 428 27.5 % 503 30.4 % Other Activities(1) (121) (118) (139) (498) (173) (118) (111) (96) Total 842 30.9 % 335 12.0 % 251 8.8 % 1,378 14.2 % 56 2.4 % 308 13.4 % 483 19.4 % 531 20.9 % Less: Net Earnings (Loss) Attributable to NCI for Engineered Materials (2) (2) — — — — — — Less: Net Earnings (Loss) Attributable to NCI for Acetyl Chain — 3 2 8 2 2 2 2 Operating Profit (Loss) Attributable to Celanese Corporation 844 31.0 % 334 11.9 % 249 8.7 % 1,370 14.2 % 54 2.3 % 306 13.3 % 481 19.3 % 529 20.8 % Operating Profit (Loss) / Operating Margin Attributable to Celanese Corporation Engineered Materials 693 45.4 % 160 10.1 % 112 6.9 % 429 10.7 % 25 2.0 % 114 12.3 % 166 17.5 % 124 13.6 % Acetyl Chain 272 22.3 % 292 23.7 % 276 22.1 % 1,439 25.1 % 202 17.8 % 310 22.2 % 426 27.3 % 501 30.3 % Other Activities(1) (121) (118) (139) (498) (173) (118) (111) (96) Total 844 31.0 % 334 11.9 % 249 8.7 % 1,370 14.2 % 54 2.3 % 306 13.3 % 481 19.3 % 529 20.8 % Equity Earnings and Dividend Income, Other Income (Expense) Attributable to Celanese Corporation Engineered Materials 12 20 10 207 35 70 53 49 Acetyl Chain 33 32 34 143 30 34 39 40 Other Activities(1) 1 6 (1) 12 1 4 1 6 Total 46 58 43 362 66 108 93 95 Non-Operating Pension and Other Post-Retirement Employee Benefit (Expense) Income Attributable to Celanese Corporation Engineered Materials — — — — — — — — Acetyl Chain — — — — — — — — Other Activities(1) (1) (2) 1 17 (57) 25 25 24 Total (1) (2) 1 17 (57) 25 25 24 Certain Items Attributable to Celanese Corporation ( Table 8 ) Engineered Materials (476) 25 93 143 78 22 5 38 Acetyl Chain 5 8 6 27 10 5 10 2 Other Activities(1) 33 21 32 252 151 44 32 25 Total (438) 54 131 422 239 71 47 65 Adjusted EBIT / Adjusted EBIT Margin Engineered Materials 229 15.0 % 205 12.9 % 215 13.2 % 779 19.4 % 138 11.2 % 206 22.2 % 224 23.6 % 211 23.2 % Acetyl Chain 310 25.4 % 332 26.9 % 316 25.3 % 1,609 28.0 % 242 21.3 % 349 25.0 % 475 30.5 % 543 32.9 % Other Activities(1) (88) (93) (107) (217) (78) (45) (53) (41) Total 451 16.6 % 444 15.9 % 424 14.9 % 2,171 22.4 % 302 12.9 % 510 22.2 % 646 26.0 % 713 28.1 % ___________________________ (1)Other Activities includes corporate SG&A expenses, 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). 6 -------------------------------------------------------------------------------- Table 2 - Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited [[Image Removed: celogo.jpg]] (cont.) Q3 '23 Q2 '23 Q1 '23 2022 Q4 '22 Q3 '22 Q2 '22 Q1 '22 (In $ millions, except percentages) Depreciation and Amortization Expense(1) Engineered Materials 111 112 112 213 90 40 41 42 Acetyl Chain 55 54 54 211 52 53 52 54 Other Activities(2) 7 6 6 22 9 4 5 4 Total 173 172 172 446 151 97 98 100 Operating EBITDA / Operating EBITDA Margin Engineered Materials 340 22.3 % 317 20.0 % 327 20.1 % 992 24.7 % 228 18.4 % 246 26.5 % 265 28.0 % 253 27.8 % Acetyl Chain 365 29.9 % 386 31.3 % 370 29.6 % 1,820 31.7 % 294 25.9 % 402 28.8 % 527 33.8 % 597 36.1 % Other Activities(2) (81) (87) (101) (195) (69) (41) (48) (37) Total 624 22.9 % 616 22.0 % 596 20.9 % 2,617 27.1 % 453 19.3 % 607 26.4 % 744 29.9 % 813 32.0 % ___________________________ (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, 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). 7 -------------------------------------------------------------------------------- [[Image Removed: celogo.jpg]] Table 3 Adjusted Earnings (Loss) per Share - Reconciliation of a Non-GAAP Measure - Unaudited Q3 '23 Q2 '23 Q1 '23 2022 Q4 '22 Q3 '22 Q2 '22 Q1 '22 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 952 8.70 219 2.00 94 0.86 1,902 17.41 768 7.03 192 1.76 440 4.03 502 4.61 Income tax provision (benefit) (236) (4) 25 (489) (840) 127 112 112 Earnings (loss) from continuing operations before tax 716 215 119 1,413 (72) 319 552 614 Certain Items attributable to Celanese Corporation ( Table 8 ) (438) 54 131 422 239 71 47 65 Refinancing and related expenses 7 — — 158 (1) 14 (1) 104 (1) 26 (1) 14 (1) Adjusted earnings (loss) from continuing operations before tax 285 269 250 1,993 181 494 625 693 Income tax (provision) benefit on adjusted earnings(2) (11) (32) (30) (259) (24) (64) (81) (90) Adjusted earnings (loss) from continuing operations(3) 274 2.50 237 2.17 220 2.01 1,734 15.88 157 1.44 430 3.94 544 4.99 603 5.54 Diluted shares (in millions)(4) Weighted average shares outstanding 108.9 108.9 108.6 108.4 108.5 108.4 108.4 108.2 Incremental shares attributable to equity awards 0.5 0.4 0.6 0.8 0.7 0.7 0.7 0.7 Total diluted shares 109.4 109.3 109.2 109.2 109.2 109.1 109.1 108.9 ______________________________ (1)Includes net interest expense and certain fees related to debt issued as part of our acquisition of the M&M Business. (2)Calculated using adjusted effective tax rates ( Table 3a ) as follows: Q3 '23 Q2 '23 Q1 '23 2022 Q4 '22 Q3 '22 Q2 '22 Q1 '22 Adjusted effective tax rate 4 12 12 13 13 13 13 13 (3)Excludes the immediate recognition of actuarial gains and losses and the impact of actual vs. expected plan asset returns. Actual Plan Asset Returns Expected Plan Asset Returns (In percentages) 2022 (18.4) 5.4 (4)Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive. 8 -------------------------------------------------------------------------------- [[Image Removed: celogo.jpg]] Table 3a Adjusted Tax Rate - Reconciliation of a Non-GAAP Measure - Unaudited Estimated Actual 2023 2022 (In percentages) US GAAP annual effective tax rate (32) (34) Discrete quarterly recognition of GAAP items(1) (4) (6) Tax impact of other charges and adjustments(2) (1) 9 Utilization of foreign tax credits (1) — Changes in valuation allowances, excluding impact of other charges and adjustments(3) 1 (1) Other, includes effect of discrete current year transactions(4)(5) 46 45 Adjusted tax rate 9 13 ______________________________ Note: As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate for actual results. (1)Such as changes in tax laws (including US tax reform), deferred taxes on outside basis differences, changes in uncertain tax positions and prior year audit adjustments. (2)Reflects the tax impact on pre-tax adjustments presented in Certain Items ( Table 8 ), which are excluded from pre-tax income for adjusted earnings per share purposes. (3)Reflects changes in valuation allowances related to changes in judgment regarding the realizability of deferred tax assets or current year operations, excluding other charges and adjustments. (4)Includes tax impacts related to full-year forecasted tax opportunities and related costs. (5)Includes the reversal of certain U.S. GAAP deferred tax benefits related to non-recurring internal restructuring transactions related to the M&M acquisition, to centralize ownership of intellectual property with the business and to facilitate future deployment of cash to service acquisition indebtedness. Certain benefits of the internal restructuring will be realized in future periods for adjusted earnings purposes. 9 -------------------------------------------------------------------------------- [[Image Removed: celogo.jpg]] Table 4 Net Sales by Segment - Unaudited Q3 '23 Q2 '23 Q1 '23 2022 Q4 '22 Q3 '22 Q2 '22 Q1 '22 (In $ millions) Engineered Materials 1,528 1,585 1,630 4,024 1,237 929 948 910 Acetyl Chain 1,220 1,233 1,250 5,743 1,135 1,397 1,559 1,652 Intersegment eliminations(1) (25) (23) (27) (94) (24) (25) (21) (24) Net sales 2,723 2,795 2,853 9,673 2,348 2,301 2,486 2,538 ___________________________ (1)Includes intersegment sales primarily related to the Acetyl Chain. 10 -------------------------------------------------------------------------------- [[Image Removed: celogo.jpg]] Table 4a Factors Affecting Segment Net Sales Sequentially - Unaudited Three Months Ended September 30, 2023 Compared to Three Months Ended June 30, 2023 Volume Price Currency Total (In percentages) Engineered Materials (1) (3) — (4) Acetyl Chain 3 (3) (1) (1) Total Company 1 (3) (1) (3) Three Months Ended June 30, 2023 Compared to Three Months Ended March 31, 2023 Volume Price Currency Total (In percentages) Engineered Materials 2 (5) — (3) Acetyl Chain 2 (3) — (1) Total Company 2 (4) — (2) Three Months Ended March 31, 2023 Compared to Three Months Ended December 31, 2022 Volume Price Currency Total (In percentages) Engineered Materials 34 (4) 2 32 Acetyl Chain 10 (2) 2 10 Total Company 19 (4) 2 17 Three Months Ended December 31, 2022 Compared to Three Months Ended September 30, 2022 Volume Price Currency Total (In percentages) Engineered Materials 34 (1) — 33 (1) Acetyl Chain (9) (10) — (19) Total Company 8 (6) — 2 ________________________ (1)2022 includes the effect of the acquisition of the majority of the M&M Business. Three Months Ended September 30, 2022 Compared to Three Months Ended June 30, 2022 Volume Price Currency Total (In percentages) Engineered Materials (1) 2 (3) (2) Acetyl Chain (3) (5) (2) (10) Total Company (2) (3) (2) (7) Three Months Ended June 30, 2022 Compared to Three Months Ended March 31, 2022 Volume Price Currency Total (In percentages) Engineered Materials 1 6 (3) 4 Acetyl Chain (6) 2 (2) (6) Total Company (2) 2 (2) (2) Three Months Ended March 31, 2022 Compared to Three Months Ended December 31, 2021 Volume Price Currency Total (In percentages) Engineered Materials 23 7 (1) 29 Acetyl Chain 7 (3) — 4 Total Company 12 1 (1) 12 11 -------------------------------------------------------------------------------- [[Image Removed: celogo.jpg]] Table 4b Factors Affecting Segment Net Sales Year Over Year - Unaudited Three Months Ended September 30, 2023 Compared to Three Months Ended September 30, 2022 Volume Price Currency Total (In percentages) Engineered Materials 75 (12) 1 64 Acetyl Chain 4 (18) 1 (13) Total Company 33 (16) 1 18 Three Months Ended June 30, 2023 Compared to Three Months Ended June 30, 2022 Volume Price Currency Total (In percentages) Engineered Materials 75 (8) — 67 Acetyl Chain (2) (19) — (21) Total Company 27 (15) — 12 Three Months Ended March 31, 2023 Compared to Three Months Ended March 31, 2022 Volume Price Currency Total (In percentages) Engineered Materials 80 2 (3) 79 Acetyl Chain (9) (13) (2) (24) Total Company 23 (8) (3) 12 Three Months Ended December 31, 2022 Compared to Three Months Ended December 31, 2021 Volume Price Currency Total (In percentages) Engineered Materials 67 17 (9) 75 Acetyl Chain (12) (14) (3) (29) Total Company 13 (5) (5) 3 Three Months Ended September 30, 2022 Compared to Three Months Ended September 30, 2021 Volume Price Currency Total (In percentages) Engineered Materials 23 25 (12) 36 Acetyl Chain (10) 2 (5) (13) Total Company (2) 9 (5) 2 Three Months Ended June 30, 2022 Compared to Three Months Ended June 30, 2021 Volume Price Currency Total (In percentages) Engineered Materials 24 24 (9) 39 Acetyl Chain (5) 11 (4) 2 Total Company 3 14 (4) 13 Three Months Ended March 31, 2022 Compared to Three Months Ended March 31, 2021 Volume Price Currency Total (In percentages) Engineered Materials 20 25 (4) 41 Acetyl Chain 7 38 (3) 42 Total Company 12 32 (3) 41 12 -------------------------------------------------------------------------------- [[Image Removed: celogo.jpg]] Table 4c Factors Affecting Segment Net Sales Year Over Year - Unaudited Year Ended December 31, 2022 Compared to Year Ended December 31, 2021 Volume Price Currency Total (In percentages) Engineered Materials 33 23 (8) 48 Acetyl Chain (6) 6 (3) (3) Total Company 6 11 (4) 13 13 -------------------------------------------------------------------------------- [[Image Removed: celogo.jpg]] Table 5 Free Cash Flow - Reconciliation of a Non-GAAP Measure - Unaudited Q3 '23 Q2 '23 Q1 '23 2022 Q4 '22 Q3 '22 Q2 '22 Q1 '22 (In $ millions, except percentages) Net cash provided by (used in) investing activities 375 (163) (178) (11,141) (10,713) (143) (136) (149) Net cash provided by (used in) financing activities (700) (447) (69) 10,290 1,944 8,600 (159) (95) Net cash provided by (used in) operating activities 403 762 (96) 1,819 541 467 495 316 Capital expenditures on property, plant and equipment (131) (145) (164) (543) (143) (139) (124) (137) Contributions from/(Distributions) to NCI (4) (6) (1) (13) (3) (3) (3) (4) Free cash flow(1) 268 611 (261) 1,263 395 325 368 175 Net sales 2,723 2,795 2,853 9,673 2,348 2,301 2,486 2,538 Free cash flow as % of Net sales 9.8 % 21.9 % (9.1) % 13.1 % 16.8 % 14.1 % 14.8 % 6.9 % ______________________________ (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 contributions from or distributions to our NCI joint ventures. 14 -------------------------------------------------------------------------------- [[Image Removed: celogo.jpg]] Table 6 Cash Dividends Received - Unaudited Q3 '23 Q2 '23 Q1 '23 2022 Q4 '22 Q3 '22 Q2 '22 Q1 '22 (In $ millions) Dividends from equity method investments 7 25 40 217 82 27 82 26 Dividends from equity investments without readily determinable fair values 30 31 34 133 30 30 36 37 Total 37 56 74 350 112 57 118 63 Table 7 Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited Q3 '23 Q2 '23 Q1 '23 2022 Q4 '22 Q3 '22 Q2 '22 Q1 '22 (In $ millions) Short-term borrowings and current installments of long-term debt - third party and affiliates 1,408 1,507 1,386 1,306 1,306 977 809 860 Long-term debt, net of unamortized deferred financing costs 12,291 12,889 13,396 13,373 13,373 11,360 3,022 3,132 Total debt 13,699 14,396 14,782 14,679 14,679 12,337 3,831 3,992 Cash and cash equivalents (1,357) (1,296) (1,167) (1,508) (1,508) (9,671) (783) (605) Net debt 12,342 13,100 13,615 13,171 13,171 2,666 3,048 3,387 15 -------------------------------------------------------------------------------- [[Image Removed: celogo.jpg]] 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: Income Statement Q3 '23 Q2 '23 Q1 '23 2022 Q4 '22 Q3 '22 Q2 '22 Q1 '22 Classification (In $ millions) Cost of sales / SG&A / Other (charges) gains, net / Gain (loss) on disposition of businesses and assets, net / Non-operating pension and other postretirement employee Exit and shutdown costs 9 21 26 52 2 14 29 7 benefit (expense) income Cost of sales / Other Asset impairments 9 — — 13 2 12 (1) — (charges) gains, net Impact from plant incidents and natural disasters(1) — — 6 17 17 — — — Cost of sales Mergers, acquisitions and dispositions 46 23 99 267 138 44 29 56 Cost of sales / SG&A Cost of sales / SG&A / Actuarial (gain) loss on Non-operating pension and pension and postretirement other postretirement employee plans — — — 80 80 — — — benefit (expense) income Legal settlements and Cost of sales / SG&A / Other commercial disputes 2 6 — 3 — 1 — 2 (charges) gains, net (Gain) loss on disposition of Gain (loss) on disposition of businesses and assets (508) 1 — (13) (1) — (12) — businesses and assets, net Other 4 3 — 3 1 — 2 — Cost of sales / SG&A Certain Items attributable to Celanese Corporation (438) 54 131 422 239 71 47 65 ___________________________ (1)Primarily associated with Winter Storm Elliott. 16 -------------------------------------------------------------------------------- [[Image Removed: celogo.jpg]] Table 9 Return on Invested Capital (Adjusted) - Presentation of a Non-GAAP Measure - Unaudited 2022 (In $ millions, except percentages) Net earnings (loss) attributable to Celanese Corporation 1,894 Adjusted EBIT ( Table 1 ) 2,171 Adjusted effective tax rate ( Table 3a ) 13 % Adjusted EBIT tax effected 1,889 2022 2021 Average (In $ millions, except percentages) Short-term borrowings and current installments of long-term debt - third parties and affiliates 1,306 791 1,049 Long-term debt, net of unamortized deferred financing costs 13,373 3,176 8,275 Celanese Corporation stockholders' equity 5,637 4,189 4,913 Invested capital 14,237 Return on invested capital (adjusted) 13.3 % Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital 13.3 % 17