PERFORMANCE MATERIALS & COATINGS The Performance Materials & Coatings operating segment includes industry-leading franchises that deliver a wide array of solutions into consumer, infrastructure and mobility end-markets. The segment consists of two global businesses: Coatings & Performance Monomers and Consumer Solutions. These businesses primarily utilize the Company's acrylics-, cellulosics- and silicone-based technology platforms to serve the needs of the architectural and industrial coatings; home care and personal care; consumer and electronics; mobility and transportation; industrial and chemical processing; and building and infrastructure end-markets. Both businesses employ materials science capabilities, global reach and unique products and technology to combine chemistry platforms to deliver differentiated, market-driven and sustainable innovations to customers. Performance Materials & Coatings In millions 2021 2020 2019 Net sales $ 9,672 $ 7,951 $ 8,923 Pro forma net sales $ 8,961 Operating EBIT $ 866 $ 314 Pro forma Operating EBIT $ 918 Equity earnings $ 7 $ 6 $ 5 Performance Materials & Coatings Percentage change from prior year 2021 2020 2019 Change in Net Sales from Prior Period due to: Local price & product mix 19 % (6) % (6) % Currency 2 — (2) Volume 1 (6) (3) Portfolio & other — 1 3 Total 22 % (11) % (8) % Change in Pro Forma Net Sales from Prior Period due to: 1 Local price & product mix — % (6) % (6) % Currency — — (2) Volume — (5) (1) Portfolio & other — — — Total — % (11) % (9) % 1. As reported net sales for the year ended December 31, 2020 compared with pro forma net sales for the year ended December 31, 2019. 2021 Versus 2020 Performance Materials & Coatings net sales were $9,672 million in 2021, up 22 percent from net sales of $7,951 million in 2020, with local price up 19 percent, volume up 1 percent, and a favorable currency impact of 2 percent. Local price increased in both businesses and across all geographic regions. Consumer Solutions local price increased in both upstream siloxanes and downstream silicones due to favorable supply and demand dynamics and higher raw material costs. Local price increased in Coatings & Performance Monomers primarily due to improved supply and demand dynamics and higher raw material costs in acrylic monomers and architectural coatings. Volume increased i n the U.S. & Canada, Asia Pacific and Latin America, which was partially offset by a decrease in EMEAI. Consumer Solutions volume increased due to higher demand in all geographic regions partially offset by planned maintenance turnaround activity. Volume decreased in Coatings & Performance Monomers in all geographic regions primarily due to supply availability challenges caused by weather-related outages and third- party supply and logistics constraints. The favorable currency impact was driven by Asia Pacific and EMEAI. Operating EBIT was $866 million in 2021, up $552 million from Operating EBIT of $314 million in 2020. Operating EBIT increased primarily due to margin expansion and higher volume in Consumer Solutions. 45