Document


			Page No.
Index to Unaudited Combined Financial Statements of the M&M Businesses
Combined Statements of Operations for the nine months ended September 30, 2022 and 2021 (unaudited)			2
Combined Statements of Comprehensive Income (Loss) for the nine months ended September 30, 2022 and 2021 (unaudited)			3
Combined Balance Sheets as of September 30, 2022 and December 31, 2021 (unaudited)			4
Interim Combined Statements of Cash Flows for the nine months ended September 30, 2022 and 2021 (unaudited)			5
Combined Statements of Changes in Net Parent Investment for the nine months ended September 30, 2022 and 2021 (unaudited)			6
Notes to the Combined Financial Statements (unaudited)			7


(In millions)	For the nine months ended September 30,
	2022		2021
Net sales	$	2,640	$	2,654
Cost of sales	2,049		1,845
Research and development expenses	50		54
Selling, general and administrative expenses	246		249
Amortization of intangibles	95		99
Restructuring and asset related charges, net	-		6
Integration and separation costs	345		4
Equity in (losses) earnings of nonconsolidated affiliates	(7)		11
Sundry income, net	7		13
(Loss) income before income taxes	(145)		421
(Benefit from) provision for income taxes	(17)		45
Net (loss) income	(128)		376
Net (loss) income attributable to noncontrolling interests	(5)		14
Net (loss) income attributable to Mobility & Materials Businesses	$	(123)	$	362


(In millions)	For the nine months ended September 30,
	2022		2021
Net (loss) income	$	(128)	$	376
Other comprehensive loss, net of tax
Cumulative translation adjustments	(301)		(90)
Total other comprehensive loss	(301)		(90)
Comprehensive (loss) income	(429)		286
Comprehensive (loss) income attributable to noncontrolling interests, net of tax	(5)		14
Comprehensive (loss) income attributable to Mobility & Materials Businesses	$	(424)	$	272


(In millions)	September 30, 2022		December 31, 2021
Assets
Current Assets
Cash and cash equivalents	$	77	$	80
Accounts and notes receivable, net	575		509
Inventories	972		690
Prepaid and other current assets	39		57
Total current assets	1,663		1,336
Property, plant and equipment, net of accumulated depreciation (September 30, 2022 - $511; December 31, 2021 - $480)	923		1,023
Other Assets
Goodwill	2,014		2,118
Other intangible assets	1,699		1,851
Investments and noncurrent receivables	52		67
Deferred income tax assets	19		22
Deferred charges and other assets	42		45
Total Other Assets	3,826		4,103
Total Assets	$	6,412	$	6,462
Liabilities and Equity
Current Liabilities
Accounts payable	$	501	$	463
Income taxes payable	61		84
Accrued and other current liabilities	120		139
Total Current Liabilities	682		686
Other Noncurrent Liabilities
Deferred income tax liabilities	364		443
Other noncurrent obligations	52		63
Total Other Noncurrent Liabilities	416		506
Total Liabilities	1,098		1,192
Commitments and Contingent Liabilities (Note 9)
Equity
Parent company net investment	5,540		5,182
Accumulated other comprehensive loss	(394)		(93)
Total Mobility & Materials Businesses Equity	5,146		5,089
Noncontrolling interests	168		181
Total Equity	5,314		5,270
Total Liabilities and Equity	$	6,412	$	6,462


(In millions)	For the nine months ended September 30,
	2022		2021
Operating Activities
Net (loss) income	$	(128)	$	376
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation of property, plant and equipment	74		75
Amortization of definite-lived intangible assets	95		99
Stock-based compensation	7		7
Credit for deferred income tax and other tax related items	(65)		(55)
Restructuring and asset related charges, net	-		6
Equity in losses (earnings) of affiliates	7		(11)
Changes in assets and liabilities:
Accounts and notes receivable	(114)		(123)
Inventories	(348)		(221)
Accounts payable	79		155
Other assets and liabilities, net	(43)		11
Cash (used in) provided by operating activities	(436)		319
Investing Activities
Capital expenditures	(47)		(33)
Cash distributions from equity affiliates	14		2
Cash used in investing activities	(33)		(31)
Financing Activities
Distributions to noncontrolling interests	(8)		(1)
Net transfers from (to) Parent	474		(280)
Cash provided by (used in) financing activities	466		(281)
(Decrease) increase in cash and cash equivalents	(3)		7
Cash and cash equivalents at beginning of period	80		70
Cash and cash equivalents at end of period	$	77	$	77


(In millions)	Parent Company Net Investment		Accumulated Other Comprehensive Income (Loss)		Total Mobility & Materials Businesses Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2020	$	5,150	$	45	$	5,195	$	171	$	5,366
Net income	362		-		362		14		376
Other comprehensive loss	-		(90)		(90)		-		(90)
Distributions to noncontrolling interests	-		-		-		(1)		(1)
Net transfers to Parent	(273)		-		(273)		-		(273)
Balance at September 30, 2021	$	5,239	$	(45)	$	5,194	$	184	$	5,378

Balance at December 31, 2021	$	5,182	$	(93)	$	5,089	$	181	$	5,270
Net loss	(123)		-		(123)		(5)		(128)
Other comprehensive loss	-		(301)		(301)		-		(301)
Distributions to noncontrolling interests	-		-		-		(8)		(8)
Net transfers from Parent	481		-		481		-		481
Balance at September 30, 2022	$	5,540	$	(394)	$	5,146	$	168	$	5,314



Note		Page
1	Summary of Significant Accounting Policies	8
2	Recent Accounting Guidance	8
3	Revenue	9
4	Related Party Transactions	10
5	Sundry Income, Net	10
6	Income Taxes	11
7	Inventories	11
8	Goodwill and Other Intangible Assets	11
9	Commitments and Contingent Liabilities	12
10	Leases	12
11	Accumulated Other Comprehensive Income (Loss)	12
12	Subsequent Events	12

The accompanying unaudited interim Combined Financial Statements of a majority of DuPont de Nemours, Inc.'s ("DuPont" or "Parent") historic Mobility & Materials segment, including the Engineering Polymers business and select product lines within the Performance Resins and Advanced Solutions businesses (collectively, the "Mobility & Materials Businesses" or "the Company") have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). In the opinion of management, the interim Combined Financial Statements reflect all adjustments (including normal recurring accruals) which are considered necessary for the fair statement of the results for the periods presented. Results from interim periods should not be considered indicative of results for the full year. These interim Combined Financial Statements should be read in conjunction with the audited annual Combined Financial Statements and notes thereto for the year ended December 31, 2021, collectively referred to as the "2021 Annual Financial Statements." The interim Combined Financial Statements include the accounts of the Company and subsidiaries in which a controlling interest is maintained.

Historically, the Company has been managed and operated in the normal course with other businesses of Parent through multiple legal entities that are not dedicated to the Mobility & Materials Businesses. For all periods presented, the Company consisted of several legal entities, previously acquired businesses, as well as businesses with no separate legal status. Separate financial statements of the Company have not historically been prepared for the Company. The interim Combined Financial Statements have been derived from DuPont's accounting records as if the Company's operations had been conducted independently from those of DuPont and were prepared on a stand-alone basis in accordance with U.S. GAAP.

The historical results of operations, financial position and cash flows of the Company presented in these interim Combined Financial Statements may not be indicative of what they would have been had the Company actually been an independent stand-alone entity, nor are they necessarily indicative of the Company's future results of operations, financial position and cash flows.

The Company's interim Combined Statements of Operations and Comprehensive Income (Loss) reflect allocations of general corporate expenses from Parent including, but not limited to, executive management, finance, legal, information technology, employee benefits administration, treasury, risk management, procurement and other shared services, and restructuring and integration and separation activities related to these functions in connection with the merger of the DOW Chemical Company ("Historical Dow") and E. I. du Pont de Nemours and Company ("Historical EID") effective August 31, 2017 (the "DWDP Merger"). These allocations were made on the basis of revenue, expenses, headcount or other relevant measures. Management of the Company and Parent consider these allocations to be an overall reasonable reflection of the utilization of services by, or the benefits provided to, the Company, in the aggregate. The allocations may not, however, reflect the expenses the Company would have incurred as a stand-alone company for the periods presented.

The Company's interim Combined Balance Sheets include Parent assets and liabilities that are specifically identifiable or otherwise attributable to the Company, including subsidiaries and affiliates in which Parent has a controlling financial interest or is the primary beneficiary.

In September 2022, the FASB issued Accounting Standards Update No. 2022-04, "Liabilities-Supplier Finance Programs (Subtopic 405-50)" ("ASU 2022-04") to enhance transparency about the use of supplier finance programs. The new guidance requires that a buyer in a supplier finance program provide additional qualitative and quantitative disclosures about its program, including the nature of the program, activity during the period, changes from period to period, and the potential magnitude of the program. The amendments in ASU 2022-04 are effective for fiscal years beginning after December 15, 2022 on a retrospective basis, including interim periods within those fiscal years, except for the amendment on rollforward information which is effective prospectively for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the potential impact of ASU 2022-04 to its related disclosures.

Substantially all of the Company's revenue is derived from product sales. Product sales consist of sales of the Company's products to supply manufacturers and distributors. The Company considers purchase orders, which in some cases are governed by master supply agreements, to be a contract with a customer. Contracts with customers are considered to be short-term when the time between order confirmation and satisfaction of the performance obligations is equal to or less than one year.

The Company records accounts receivable when the right to consideration becomes unconditional. Trade accounts receivable were $416 million at September 30, 2022 and $388 million at December 31, 2021. Trade accounts receivable are included in "Accounts and notes receivable, net" in the interim Combined Balance Sheets. There were no contract assets or contract liabilities at September 30, 2022 or December 31, 2021.

Historically, the Company has been managed and operated in the normal course with other businesses of Parent. Accordingly, certain shared costs have been allocated to the Company and reflected as expenses in the stand-alone interim Combined Financial Statements. Management of Parent and the Company considers the allocation methodologies used to be reasonable and appropriate reflections of the historical expenses attributable to the Company for purposes of the stand-alone financial statements. The expenses reflected in the interim Combined Financial Statements may not be indicative of expenses that would be incurred by the Company in the future. All related party transactions approximate prices at cost.

The Company's interim Combined Statements of Operations include general corporate expenses of Parent for services provided by Parent for certain support functions that are provided on a centralized basis. These costs were first attributed to the Company if specifically identifiable to its businesses. If not specifically identifiable to the Company's businesses, these costs have been allocated by using relevant allocation methods, primarily based on sales metrics, consistently for all periods presented.

(1)Costs primarily have consisted of financial advisory, information technology, legal, accounting, consulting, and other professional advisory fees associated with the preparation and execution of activities related to strategic initiatives. Costs incurred in the nine months ended September 30, 2022 are related to the anticipated divestiture of the Company by the Parent.


(In millions)	For the nine months ended September 30,
	2022		2021
Cash pooling and general financing activities	$	956	$	(81)
Less: Corporate cost allocations	492		147
Less: (Benefit from) provision for income taxes	(17)		45
Total net transfers from (to) Parent per interim Combined Statements of Changes in Net Parent Investment	481		(273)
Stock-based compensation	(7)		(7)
Net transfers from (to) Parent per interim Combined Statements of Cash Flows	$	474	$	(280)

Sales to nonconsolidated affiliates, (which included the entities Toray Co., Ltd, DuBay Polymer GmbH, DuP Teijin Films U.K., DuP Teijin Films S.A., Teijin DuPont Films, Inc. and Teijin-DuPont Films, L.P.) were $77 million and $55 million for the nine months ended September 30, 2022 and 2021, respectively. Purchases from nonconsolidated affiliates were $44 million and $41 million for the nine months ended September 30, 2022 and 2021, respectively. Related party receivables and payables were not material as of September 30, 2022 and December 31, 2021, respectively.

The Company files tax returns in the various national, state, and local income taxing jurisdictions in which it operates either as a member of Parent's consolidated income tax return, or in certain jurisdictions as a separate taxpayer. Provision for income taxes and benefit from income taxes included in these Combined Financial Statements have been calculated using the separate return basis, as if the Company filed separate returns in all jurisdictions. The Company's provision for and benefit from income taxes as presented in the interim Combined Financial Statements may not be indicative of the income taxes that the Company will generate in the future.

The Company's effective tax rate fluctuates based on, among other factors, the geographic mix of earnings. The tax benefit for the third quarter of 2022 resulted in an effective tax rate on operations of 11.7 percent on a pre-tax loss of $145 million, whereas for the third quarter of 2021, the tax charge resulted in an effective tax rate of 10.7 percent, on pre-tax income of $421 million. The effective tax rate for the third quarter of 2022 was principally the result of the geographic mix of earnings and adverse impact of integration and separation costs on the US Tax on foreign earnings. The effective tax rate for the third quarter of 2021 was principally the result of a $30 million tax benefit related to the step-up in tax basis in the goodwill of the Company's European regional headquarters legal entity.

Each year Parent, inclusive of the Company, files hundreds of tax returns in the various national, state and local income taxing jurisdictions in which it operates. These tax returns are subject to examination and possible challenge by the tax authorities. Positions challenged by the tax authorities may be settled or appealed by the Company. As a result, there is an uncertainty in income taxes recognized in the Company's financial statements in accordance with accounting for income taxes and accounting for uncertainty in income taxes. The ultimate resolution of such uncertainties is not expected to have a material impact on the Company's results of operations.


	September 30, 2022						December 31, 2021
(In millions)	Gross Carrying Amount		Accumulated Amort		Net		Gross Carrying Amount		Accumulated Amort		Net
Intangible assets with finite lives:
Developed technology	$	585	$	(219)	$	366	$	585	$	(186)	$	399
Customer-related	1,561		(416)		1,145		1,635		(371)		1,264
Other	10		(2)		8		9		(1)		8
Total other intangible assets with finite lives	$	2,156	$	(637)	$	1,519	$	2,229	$	(558)	$	1,671
Intangible assets with indefinite lives:
Trademarks/tradenames	180		-		180		180		-		180
Total other intangible assets with indefinite lives	180		-		180		180		-		180
Total	$	2,336	$	(637)	$	1,699	$	2,409	$	(558)	$	1,851

The Company is involved in numerous claims and lawsuits, principally in the United States, including various product liability (involving the Company's current or former products), intellectual property, employment related, and commercial matters. Certain of these matters may purport to be class actions and seek damages in very large amounts. Liabilities related to matters that are not directly attributable to the Company business and for which the Company is not the legal obligor are not recognized within the Company's interim Combined Financial Statements for any of the periods presented.

As of September 30, 2022, the Company had recorded liabilities of approximately $1 million related to the foregoing. Because such matters are subject to inherent uncertainties, and unfavorable rulings or developments could occur, there can be no certainty that the Company will not ultimately incur charges in excess of presently recorded liabilities. Although considerable uncertainty exists, management does not believe it is reasonably possible that the ultimate disposition of these matters will have a material adverse effect on the Company's results of operations, combined financial position or liquidity. However, the ultimate liabilities could be material to results of operations in the period recognized.

Operating lease right of use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. New operating lease assets and liabilities entered into during the nine months ended September 30, 2022 and 2021 were $4 million and $15 million, respectively. Supplemental balance sheet information related to leases was as follows:


Accumulated Other Comprehensive Income (Loss)
(In millions)	Cumulative Translation Adj		Total
2021
Balance at January 1, 2021	$	45	$	45
Other comprehensive loss before reclassifications	(90)		(90)
Net other comprehensive loss	$	(90)	$	(90)
Balance at September 30, 2021	$	(45)	$	(45)
2022
Balance at January 1, 2022	$	(93)	$	(93)
Other comprehensive loss before reclassifications	(301)		(301)
Net other comprehensive loss	$	(301)	$	(301)
Balance at September 30, 2022	$	(394)	$	(394)

On November 1, 2022, DuPont completed the divestiture of the Mobility & Materials Businesses to Celanese for a purchase price of $11.0 billion in cash. Preliminary cash received, as adjusted for preliminary and other adjustments, was $11.0 billion including approximately $0.5 billion of cash transferred with the Mobility & Materials Businesses for which DuPont was reimbursed.


Net Sales by Major Product Line (In millions)	For the nine months ended September 30,
	2022		2021
Advanced Solutions	$	424	$	528
Engineering Polymers	1,732		1,673
Performance Resins	484		453
Total	$	2,640	$	2,654


(In millions)	September 30, 2022		December 31, 2021
Finished goods	$	636	$	446
Work in process	93		74
Raw materials	201		130
Supplies	42		40
Total inventories	$	972	$	690