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CE Celanese Corp - Series A

Filed: 28 Jan 21, 4:39pm
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Exhibit 99.2
Non-US GAAP Financial Measures and Supplemental Information
January 28, 2021
In this document, the terms the "Company," "we" and "our" refer to Celanese Corporation and its subsidiaries on a consolidated basis.
Purpose
The purpose of this document is to provide information of interest to investors, analysts and other parties including supplemental financial information and reconciliations and other information concerning our use of non-US GAAP financial measures. This document is updated quarterly.
Presentation
This document presents the Company's three business segments, Engineered Materials, Acetate Tow and Acetyl Chain.
Use of Non-US GAAP Financial Measures
From time to time, management may publicly disclose certain numerical "non-GAAP financial measures" in the course of our earnings releases, financial presentations, earnings conference calls, investor and analyst meetings and otherwise. For these purposes, the Securities and Exchange Commission ("SEC") defines a "non-GAAP financial measure" as a numerical measure of historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that effectively exclude amounts, included in the most directly comparable measure calculated and presented in accordance with US GAAP, and vice versa for measures that include amounts, or are subject to adjustments that effectively include amounts, that are excluded from the most directly comparable US GAAP measure so calculated and presented. For these purposes, "GAAP" refers to generally accepted accounting principles in the United States.
Non-GAAP financial measures disclosed by management are provided as additional information to investors, analysts and other parties because the Company believes them to be important supplemental measures for assessing our financial and operating results and as a means to evaluate our financial condition and period-to-period comparisons. These non-GAAP financial measures should be viewed as supplemental to, and should not be considered in isolation or as alternatives to, net earnings (loss), operating profit (loss), operating margin, cash flow from operating activities (together with cash flow from investing and financing activities), earnings per share or any other US GAAP financial measure. These non-GAAP financial measures should be considered within the context of our complete audited and unaudited financial results for the given period, which are available on the Financial Information/Financial Document Library page of our website, investors.celanese.com. The definition and method of calculation of the non-GAAP financial measures used herein may be different from other companies' methods for calculating measures with the same or similar titles. Investors, analysts and other parties should understand how another company calculates such non-GAAP financial measures before comparing the other company's non-GAAP financial measures to any of our own. These non-GAAP financial measures may not be indicative of the historical operating results of the Company nor are they intended to be predictive or projections of future results.
Pursuant to the requirements of SEC Regulation G, whenever we refer to a non-GAAP financial measure, we will also present in this document, in the presentation itself or on a Form 8-K in connection with the presentation on the Financial Information/Financial Document Library page of our website, investors.celanese.com, to the extent practicable, the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure.
This document includes definitions and reconciliations of non-GAAP financial measures used from time to time by the Company.
Specific Measures Used
This document provides information about the following non-GAAP measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA, operating EBITDA margin, operating profit (loss) attributable to Celanese Corporation, adjusted earnings per share, net debt, free cash flow and return on invested capital (adjusted). The most directly comparable financial measure presented in accordance with US GAAP in our consolidated financial statements for adjusted EBIT and operating EBITDA is net earnings (loss) attributable to Celanese Corporation; for adjusted EBIT margin and operating EBITDA margin is operating margin; for operating profit (loss) attributable to Celanese Corporation is operating profit (loss); for adjusted earnings per share is earnings (loss) from continuing operations attributable to Celanese Corporation per common share-diluted; for net debt
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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.
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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.
Supplemental Information
Supplemental Information we believe to be of interest to investors, analysts and other parties includes the following:
Net sales for each of our business segments and the percentage increase or decrease in net sales attributable to price, volume, currency and other factors for each of our business segments.
Cash dividends received from our equity investments.
For those consolidated ventures in which the Company owns or is exposed to less than 100% of the economics, the outside stockholders' interests are shown as NCI. Beginning in 2014, this includes Fairway for which the Company's ownership percentage is 50%. Amounts referred to as "attributable to Celanese Corporation" are net of any applicable NCI.
Results Unaudited
The results in this document, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management. Quarterly results should not be taken as an indication of the results of operations to be reported for any subsequent period or for the full fiscal year.
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Table 1
Adjusted EBIT and Operating EBITDA - Reconciliation of Non-GAAP Measures - Unaudited
2020Q4 '20Q3 '20Q2 '20Q1 '202019Q4 '19Q3 '19Q2 '19Q1 '19
(In $ millions)
Net earnings (loss) attributable to Celanese Corporation1,985 1,453 207 107 218 852 43 263 209 337 
(Earnings) loss from discontinued operations12 — (1)
Interest income(6)(2)(1)(1)(2)(6)(2)(1)(2)(1)
Interest expense109 26 28 27 28 115 28 27 29 31 
Refinancing expense— — — — — — — — 
Income tax provision (benefit)247 117 30 35 65 124 (3)53 28 46 
Certain Items attributable to Celanese Corporation (Table 8)
(1,216)(1,294)24 28 26 381 238 29 107 
Adjusted EBIT1,131 300 290 199 342 1,476 303 376 376 421 
Depreciation and amortization expense(1)
344 87 88 86 83 329 84 82 82 81 
Operating EBITDA1,475 387 378 285 425 1,805 387 458 458 502 
2020Q4 '20Q3 '20Q2 '20Q1 '202019Q4 '19Q3 '19Q2 '19Q1 '19
(In $ millions)
Engineered Materials— — 
Acetate Tow— — — — — — 
Acetyl Chain— — — 10 — 
Other Activities(2)
— — — — — — — — — — 
Accelerated depreciation and amortization expense23 12 
Depreciation and amortization expense(1)
344 87 88 86 83 329 84 82 82 81 
Total depreciation and amortization expense350 89 89 87 85 352 91 94 84 83 
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(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).
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Table 2 - Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited
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2020Q4 '20Q3 '20Q2 '20Q1 '202019Q4 '19Q3 '19Q2 '19Q1 '19
(In $ millions, except percentages)
Operating Profit (Loss) / Operating Margin
Engineered Materials235 11.3 %62 10.8 %84 16.0 %(13)(3.1)%102 18.1 %446 18.7 %88 16.3 %111 18.8 %103 17.4 %144 21.7 %
Acetate Tow118 22.7 %30 22.4 %30 23.3 %31 24.4 %27 20.9 %52 8.2 %22 14.9 %34 21.5 %(44)(26.8)%40 24.1 %
Acetyl Chain(1)
563 17.9 %186 20.4 %121 15.6 %121 18.3 %135 16.9 %678 20.0 %108 14.0 %180 20.8 %188 21.7 %202 22.7 %
Other Activities(2)
(252)(75)(51)(56)(70)(342)(150)(65)(61)(66)
Total664 11.7 %203 12.8 %184 13.0 %83 7.0 %194 13.3 %834 13.2 %68 4.7 %260 16.4 %186 11.7 %320 19.0 %
Less: Net Earnings (Loss) Attributable to NCI(1)
Operating Profit (Loss) Attributable to Celanese Corporation657 11.6 %202 12.7 %182 12.9 %81 6.8 %192 13.2 %828 13.1 %66 4.6 %258 16.3 %185 11.6 %319 18.9 %
Operating Profit (Loss) / Operating Margin Attributable to Celanese Corporation
Engineered Materials235 11.3 %62 10.8 %84 16.0 %(13)(3.1)%102 18.1 %446 18.7 %88 16.3 %111 18.8 %103 17.4 %144 21.7 %
Acetate Tow118 22.7 %30 22.4 %30 23.3 %31 24.4 %27 20.9 %52 8.2 %22 14.9 %34 21.5 %(44)(26.8)%40 24.1 %
Acetyl Chain(1)
556 17.7 %185 20.3 %119 15.3 %119 18.0 %133 16.6 %672 19.8 %106 13.7 %178 20.5 %187 21.6 %201 22.6 %
Other Activities(2)
(252)(75)(51)(56)(70)(342)(150)(65)(61)(66)
Total657 11.6 %202 12.7 %182 12.9 %81 6.8 %192 13.2 %828 13.1 %66 4.6 %258 16.3 %185 11.6 %319 18.9 %
Equity Earnings and Dividend Income, Other Income (Expense) Attributable to Celanese Corporation
Engineered Materials115 15 21 26 53 168 45 41 36 46 
Acetate Tow126 29 28 32 37 112 24 27 29 32 
Acetyl Chain— 
Other Activities(2)
19 — (1)
Total265 50 56 63 96 287 70 72 67 78 
Non-Operating Pension and Other Post-Retirement Employee Benefit (Expense) Income Attributable to Celanese Corporation
Engineered Materials— — — — — — — — 
Acetate Tow— — — — — — — — — — 
Acetyl Chain— — — — — — — — — — 
Other Activities(2)
16 (67)28 27 28 (20)(71)17 17 17 
Total17 (66)28 27 28 (20)(71)17 17 17 
Gain (Loss) On Sale of Investments in Affiliates
Engineered Materials1,408 1,408 — — — — — — — — 
Acetate Tow— — — — — — — — — — 
Acetyl Chain— — — — — — — — — — 
Other Activities(2)
— — — — — — — — — — 
Total1,408 1,408 — — — — — — — — 
Certain Items Attributable to Celanese Corporation (Table 8)
Engineered Materials(1,356)(1,404)11 27 10 (7)
Acetate Tow— 104 10 86 — 
Acetyl Chain— (3)50 37 11 
Other Activities(2)
128 110 220 190 11 13 
Total(1,216)(1,294)24 28 26 381 238 29 107 
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(1)Net earnings (loss) attributable to NCI is included within the Acetyl Chain segment.
(2)Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses).
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Table 2 - Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited (cont.)
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2020Q4 '20Q3 '20Q2 '20Q1 '202019Q4 '19Q3 '19Q2 '19Q1 '19
(In $ millions, except percentages)
Adjusted EBIT / Adjusted EBIT Margin
Engineered Materials403 19.4 %82 14.3 %116 22.1 %40 9.5 %165 29.3 %621 26.0 %136 25.2 %154 26.1 %148 25.0 %183 27.6 %
Acetate Tow249 48.0 %59 44.0 %59 45.7 %64 50.4 %67 51.9 %268 42.1 %54 36.5 %71 44.9 %71 43.3 %72 43.4 %
Acetyl Chain568 18.0 %187 20.5 %126 16.2 %116 17.5 %139 17.4 %727 21.4 %144 18.7 %191 22.0 %189 21.8 %203 22.8 %
Other Activities(2)
(89)(28)(11)(21)(29)(140)(31)(40)(32)(37)
Total1,131 20.0 %300 18.9 %290 20.6 %199 16.7 %342 23.4 %1,476 23.4 %303 21.2 %376 23.7 %376 23.6 %421 25.0 %
Depreciation and Amortization Expense(1)
Engineered Materials129 32 33 32 32 127 33 32 31 31 
Acetate Tow36 10 36 10 
Acetyl Chain162 41 41 41 39 151 39 37 38 37 
Other Activities(2)
17 15 
Total344 87 88 86 83 329 84 82 82 81 
Operating EBITDA / Operating EBITDA Margin
Engineered Materials532 25.6 %114 19.9 %149 28.3 %72 17.1 %197 35.0 %748 31.3 %169 31.4 %186 31.5 %179 30.2 %214 32.3 %
Acetate Tow285 54.9 %69 51.5 %68 52.7 %73 57.5 %75 58.1 %304 47.8 %62 41.9 %80 50.6 %80 48.8 %82 49.4 %
Acetyl Chain730 23.2 %228 25.1 %167 21.5 %157 23.7 %178 22.3 %878 25.9 %183 23.7 %228 26.3 %227 26.2 %240 27.0 %
Other Activities(2)
(72)(24)(6)(17)(25)(125)(27)(36)(28)(34)
Total1,475 26.1 %387 24.3 %378 26.8 %285 23.9 %425 29.1 %1,805 28.7 %387 27.0 %458 28.9 %458 28.8 %502 29.8 %
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(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).
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Table 3
Adjusted Earnings (Loss) per Share - Reconciliation of a Non-GAAP Measure - Unaudited
2020Q4 '20Q3 '20Q2 '20Q1 '202019Q4 '19Q3 '19Q2 '19Q1 '19
per shareper shareper shareper shareper shareper shareper shareper shareper shareper share
(In $ millions, except per share data)
Earnings (loss) from continuing operations attributable to Celanese Corporation1,997 16.85 1,453 12.50 209 1.76 110 0.93 225 1.88 858 6.89 42 0.35 268 2.17 210 1.67 338 2.64 
Income tax provision (benefit)247 117 30 35 65 124 (3)53 28 46 
Earnings (loss) from continuing operations before tax2,244 1,570 239 145 290 982 39 321 238 384 
Certain Items attributable to Celanese Corporation (Table 8)
(1,216)(1,294)24 28 26 381 238 29 107 
Refinancing and related expenses— — — — — — — — 
Adjusted earnings (loss) from continuing operations before tax1,028 276 263 173 316 1,367 277 350 349 391 
Income tax (provision) benefit on adjusted earnings(1)
(123)(33)(32)(18)(41)(178)(36)(38)(49)(55)
Adjusted earnings (loss) from continuing operations(2)
905 7.64 243 2.09 231 1.95 155 1.30 275 2.29 1,189 9.53 241 1.99 312 2.53 300 2.38 336 2.62 
Diluted shares (in millions)(3)
Weighted average shares outstanding117.8 115.7 118.0 118.3 119.3 123.9 120.3 122.7 125.3 127.5 
Incremental shares attributable to equity awards0.7 0.6 0.6 0.5 0.6 0.8 0.6 0.6 0.5 0.7 
Total diluted shares118.5 116.3 118.6 118.8 119.9 124.7 120.9 123.3 125.8 128.2 
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(1)Calculated using adjusted effective tax rates (Table 3a) as follows:
2020Q4 '20Q3 '20Q2 '20Q1 '202019Q4 '19Q3 '19Q2 '19Q1 '19
(In percentages)
Adjusted effective tax rate12 12 12 10 13 13 13 11 14 14 
(2)Excludes the immediate recognition of actuarial gains and losses and the impact of actual vs. expected plan asset returns.
Actual Plan Asset ReturnsExpected Plan Asset Returns
(In percentages)
Q4 '20 & 202012.4 6.5 
Q4 '19 & 201916.7 6.5 
(3)Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.
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Table 3a
Adjusted Tax Rate - Reconciliation of a Non-GAAP Measure - Unaudited
Actual
20202019
(In percentages)
US GAAP annual effective tax rate11 13 
Discrete quarterly recognition of GAAP items(1)
12 — 
Tax impact of other charges and adjustments(2)
(9)— 
Utilization of foreign tax credits(3)(3)
Changes in valuation allowances, excluding impact of other charges and adjustments(3)
— 
Other(4)
— 
Adjusted tax rate12 13 
______________________________
Note: As part of the year-end reconciliation, we updated the reconciliation of the GAAP effective tax rate for actual results.
(1)Such as changes in tax laws (including US tax reform), deferred taxes on outside basis differences, changes in uncertain tax positions and prior year audit adjustments.
(2)Reflects the tax impact on pre-tax adjustments presented in Certain Items (Table 8), which are excluded from pre-tax income for adjusted earnings per share purposes.
(3)Reflects changes in valuation allowances related to changes in judgment regarding the realizability of deferred tax assets or current year operations, excluding other charges and adjustments.
(4)Tax impacts related to full-year forecasted tax opportunities and related costs.
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Table 4
Net Sales by Segment - Unaudited
2020Q4 '20Q3 '20Q2 '20Q1 '202019Q4 '19Q3 '19Q2 '19Q1 '19
(In $ millions)
Engineered Materials2,081 572 526 420 563 2,386 539 591 593 663 
Acetate Tow519 134 129 127 129 636 148 158 164 166 
Acetyl Chain3,147 910 776 662 799 3,392 771 867 865 889 
Intersegment eliminations(1)
(92)(25)(20)(16)(31)(117)(26)(30)(30)(31)
Net sales5,655 1,591 1,411 1,193 1,460 6,297 1,432 1,586 1,592 1,687 
___________________________
(1)Includes intersegment sales primarily related to the Acetyl Chain.
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Table 4a
Factors Affecting Segment Net Sales Sequentially - Unaudited
Three Months Ended December 31, 2020 Compared to Three Months Ended September 30, 2020
VolumePriceCurrencyOtherTotal
 (In percentages)
Engineered Materials— — 
Acetate Tow(1)— — 
Acetyl Chain10 — 17 

Total Company7 5 1  13 
Three Months Ended September 30, 2020 Compared to Three Months Ended June 30, 2020
VolumePriceCurrencyOtherTotal
 (In percentages)
Engineered Materials27 (6)— 25 
Acetate Tow— 
Acetyl Chain18 (2)— 17 
Total Company20 (3)2 (1)18 
Three Months Ended June 30, 2020 Compared to Three Months Ended March 31, 2020
VolumePriceCurrencyOtherTotal
 (In percentages)
Engineered Materials(25)— — — (25)
Acetate Tow(3)— — (2)
Acetyl Chain(6)(11)— — (17)(1)
Total Company(13)(6) 1 (18)
Three Months March 31, 2020 Compared to Three Months Ended December 31, 2019
VolumePriceCurrencyOtherTotal
 (In percentages)
Engineered Materials— — — 
Acetate Tow(9)(4)— — (13)
Acetyl Chain(1)— — 
Total Company3 (1)  2 


Three Months Ended December 31, 2019 Compared to Three Months Ended September 30, 2019
VolumePriceCurrencyOtherTotal
 (In percentages)
Engineered Materials(9)— — — (9)
Acetate Tow(6)— — — (6)
Acetyl Chain(11)— — — (11)
Total Company(10)   (10)
Three Months Ended September 30, 2019 Compared to Three Months Ended June 30, 2019
VolumePriceCurrencyOtherTotal
 (In percentages)
Engineered Materials(2)(1)— (1)
Acetate Tow(2)(1)— — (3)
Acetyl Chain— (1)— — 
Total Company2 (1)(1)  
Three Months Ended June 30, 2019 Compared to Three Months Ended March 31, 2019
VolumePriceCurrencyOtherTotal
 (In percentages)
Engineered Materials(7)(3)(1)— (11)
Acetate Tow(1)— — — (1)
Acetyl Chain(4)(1)— (3)
Total Company(2)(3)(1) (6)
Three Months Ended March 31, 2019 Compared to Three Months Ended December 31, 2018
VolumePriceCurrencyOtherTotal
 (In percentages)
Engineered Materials— — (2)
Acetate Tow— — 
Acetyl Chain(10)— — (5)
Total Company5 (5)   
________________________
(1)2020 includes the effect of the acquisition of the Elotex® brand.
(2)2019 includes the effect of the acquisition of Next Polymers Ltd.
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Table 4b
Factors Affecting Segment Net Sales Year Over Year - Unaudited
Three Months Ended December 31, 2020 Compared to Three Months Ended December 31, 2019
VolumePriceCurrencyOtherTotal
 (In percentages)
Engineered Materials(4)— 
Acetate Tow(7)(3)— (9)
Acetyl Chain19 (3)— 18 
Total Company12 (4)3  11 
Three Months Ended September 30, 2020 Compared to Three Months Ended September 30, 2019
VolumePriceCurrencyOtherTotal
 (In percentages)
Engineered Materials(10)(3)— (11)
Acetate Tow(15)(3)— — (18)
Acetyl Chain(1)(11)— (11)
Total Company(6)(7)1 1 (11)
Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019
VolumePriceCurrencyOtherTotal
 (In percentages)
Engineered Materials(27)(1)(1)— (29)
Acetate Tow(18)(5)— — (23)
Acetyl Chain(14)(8)(1)— (23)
Total Company(20)(5)(1)1 (25)
Three Months Ended March 31, 2020 Compared to Three Months Ended March 31, 2019
VolumePriceCurrencyOtherTotal
 (In percentages)
Engineered Materials(9)(5)(1)— (15)
Acetate Tow(17)(5)— — (22)
Acetyl Chain(3)(7)(1)(10)
Total Company(7)(6)(1)1 (13)


Three Months Ended December 31, 2019 Compared to Three Months Ended December 31, 2018
VolumePriceCurrencyOtherTotal
 (In percentages)
Engineered Materials(9)(3)(1)— (13)
Acetate Tow(8)— — — (8)
Acetyl Chain(4)(13)(1)— (18)
Total Company(6)(8)(1) (15)
Three Months Ended September 30, 2019 Compared to Three Months Ended September 30, 2018
VolumePriceCurrencyOtherTotal
 (In percentages)
Engineered Materials(4)(2)(2)— (8)
Acetate Tow— — — — — 
Acetyl Chain(18)(2)— (14)
Total Company2 (11)(2)1 (10)
Three Months Ended June 30, 2019 Compared to Three Months Ended June 30, 2018
VolumePriceCurrencyOtherTotal
 (In percentages)
Engineered Materials(8)— (3)— (11)
Acetate Tow(1)— 
Acetyl Chain(1)(14)(3)— (18)
Total Company(3)(8)(3) (14)
Three Months Ended March 31, 2019 Compared to Three Months Ended March 31, 2018
VolumePriceCurrencyOtherTotal
(In percentages)
Engineered Materials(3)(4)— — 
Acetate Tow(1)— — — (1)
Acetyl Chain(4)(8)(3)— (15)
Total Company(3)(2)(4) (9)
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Table 4c
Factors Affecting Segment Net Sales Year Over Year - Unaudited
Year Ended December 31, 2020 Compared to Year Ended December 31, 2019
VolumePriceCurrencyOtherTotal
 (In percentages)
Engineered Materials(11)(3)— (13)
Acetate Tow(14)(4)— — (18)
Acetyl Chain— (8)— (7)
Total Company(5)(6) 1 (10)
Year Ended December 31, 2019 Compared to Year Ended December 31, 2018
VolumePriceCurrencyOtherTotal
 (In percentages)
Engineered Materials(5)— (3)— (8)
Acetate Tow(2)— — — (2)
Acetyl Chain(1)(13)(2)— (16)
Total Company(3)(7)(2) (12)
12

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Table 5
Free Cash Flow - Reconciliation of a Non-GAAP Measure - Unaudited
2020Q4 '20Q3 '20Q2 '20Q1 '202019Q4 '19Q3 '19Q2 '19Q1 '19
(In $ millions, except percentages)
Net cash provided by (used in) investing activities592 979 (78)(181)(128)(493)(168)(82)(66)(177)
Net cash provided by (used in) financing activities(1,471)(933)(290)(232)(16)(935)(199)(299)(307)(130)
Net cash provided by (used in) operating activities1,343 274 431 379 259 1,454 326 397 424 307 
Capital expenditures on property, plant and equipment(364)(85)(72)(88)(119)(370)(144)(82)(65)(79)
Distributions to NCI(29)(8)(8)(8)(5)(10)(3)— (3)(4)
Free cash flow(1)(2)
950 181 351 283 135 1,074 179315 356 224 
Net sales5,655 1,591 1,411 1,193 1,460 6,297 1,432 1,586 1,592 1,687 
Free cash flow as % of Net sales16.8 %11.4 %24.9 %23.7 %9.2 %17.1 %12.5 %19.9 %22.4 %13.3 %
______________________________
(1)Free cash flow is a liquidity measure used by the Company and is defined by the Company as net cash provided by (used in) operating activities, less capital expenditures on property, plant and equipment, and adjusted for capital contributions or distributions to Mitsui related to our joint venture, Fairway.
(2)Excludes required debt service and finance lease payments of $26 million and $24 million for the years ended December 31, 2020 and 2019, respectively.
13

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Table 6
Cash Dividends Received - Unaudited
2020Q4 '20Q3 '20Q2 '20Q1 '202019Q4 '19Q3 '19Q2 '19Q1 '19
(In $ millions)
Dividends from equity method investments147 36 59 46 168 42 15 41 70 
Dividends from equity investments without readily determinable fair values126 28 29 32 37 113 24 27 30 32 
Total273 64 35 91 83 281 66 42 71 102 
Table 7
Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited
2020Q4 '20Q3 '20Q2 '20Q1 '202019Q4 '19Q3 '19Q2 '19Q1 '19
(In $ millions)
Short-term borrowings and current installments of long-term debt - third party and affiliates496 496 958 1,045 749 496 496 368 319 743 
Long-term debt, net of unamortized deferred financing costs3,227 3,227 3,140 2,989 3,356 3,409 3,409 3,359 3,444 2,933 
Total debt3,723 3,723 4,098 4,034 4,105 3,905 3,905 3,727 3,763 3,676 
Cash and cash equivalents(955)(955)(615)(539)(570)(463)(463)(497)(491)(441)
Net debt2,768 2,768 3,483 3,495 3,535 3,442 3,442 3,230 3,272 3,235 
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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:
2020Q4 '20Q3 '20Q2 '20Q1 '202019Q4 '19Q3 '19Q2 '19Q1 '19Income Statement Classification
(In $ millions)
Plant/office closures10 (4)26 12 Cost of sales / SG&A / Other (charges) gains, net / Gain (loss) on disposition of businesses and assets, net
Asset impairments31 — 25 94 (1)83 — Cost of sales / Other (charges) gains, net
Clear Lake incident— — — 34 32 — — Cost of sales
COVID-19— — — — — Cost of sales / SG&A
Mergers, acquisitions and dispositions22 12 Cost of sales / SG&A
Actuarial (gain) loss on pension and postretirement plans95 95 — — — 88 88 — — — Cost of sales / SG&A / Non-operating pension and other postretirement employee benefit (expense) income
Restructuring25 11 27 15 (1)SG&A / Other (charges) gains, net / Non-operating pension and other postretirement employee benefit (expense) income
European Commission investigation— — — 89 89 — — — Other (charges) gains, net
Commercial disputes(1)— — (1)— 10 — Cost of sales / SG&A / Other (charges) gains, net
(Gain) loss on sale of investments in affiliates(1,408)(1,408)— — — — — — — — Gain (loss) on sale of investments in affiliates
Other(1)— (1)— — — — — SG&A / Gain (loss) on disposition of businesses and assets, net
Certain Items attributable to Celanese Corporation(1,216)(1,294)24 28 26 381 238 29 107 
______________________________

(1)Includes $5 million of asset impairments in 2019 related to the Clear Lake incident.
15

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Table 9
Return on Invested Capital (Adjusted) - Presentation of a Non-GAAP Measure - Unaudited
20202019
(In $ millions, except percentages)(In $ millions, except percentages)
Net earnings (loss) attributable to Celanese Corporation1,985 852 
Adjusted EBIT (Table 1)
1,131 1,476 
Adjusted effective tax rate (Table 3a)
12 %13 %
Adjusted EBIT tax effected995 1,284 
20202019Average20192018Average
(In $ millions, except percentages)
Short-term borrowings and current installments of long-term debt - third parties and affiliates496 496 496 496 561 529 
Long-term debt, net of unamortized deferred financing costs3,227 3,409 3,318 3,409 2,970 3,190 
Celanese Corporation stockholders' equity3,526 2,507 3,017 2,507 2,984 2,746 
Invested capital6,831 6,465 
Return on invested capital (adjusted)14.6 %19.9 %
Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital29.1 %13.2 %
16