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):   August 8, 2019

Trinseo S.A.
(Exact name of registrant as specified in its charter)

 	 	 	 	 	
Luxembourg	 	001-36473	 	N/A	
(State or other jurisdiction
of incorporation or organization)	 	(Commission
File Number)	 	(I.R.S. Employer
Identification Number)	
 
1000 Chesterbrook Boulevard, Suite 300,
Berwyn, Pennsylvania 19312
(Address of principal executive offices, including zip code)
 
(610) 240-3200
(Telephone number, including area code)

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))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
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. ☐
Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading symbol	Name of Exchange on which registered	
Ordinary Shares, par value $0.01 per share	TSE	New York Stock Exchange	

 

ITEM 2.02 Results of Operations and Financial Condition
 
On August 8, 2019, Trinseo S.A., a public limited liability company ( société anonyme ) existing under the laws of Luxembourg (the “ Company ”), issued a press release announcing its financial results for the second quarter ended June 30, 2019. A copy of the press release is furnished as Exhibit 99.1 hereto. The Company intends to hold an investor call and webcast to discuss these results on Friday,  August 9, 2019 at 10 AM Eastern Time. Ahead of this call the Company is also providing investors with a copy of the investor presentation materials, which will be discussed on the call and are furnished hereto as Exhibit 99.2.

The information contained herein and in the accompanying exhibits shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
 
ITEM 9.01. Financial Statements and Exhibits
 
(d) Exhibits
 
ay	 	 	
Exhibit
 Number	 	Description	
99.1	 	Press Release, dated August 8, 2019	
99.2	 	Investor Presentation, dated August 8, 2019	

 

EXHIBIT INDEX
 
Ay 2	 	 	
Exhibit
Number	 	Description	
99.1	 	Press Release, dated August 8, 2019	
99.2	 	Investor Presentation, dated August 8, 2019	

 

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
a	 	 	 	
 	 	TRINSEO S.A.	

 	 	By:	/s/ David Stasse	
 	 	Name:	David Stasse	
 	 	Title:	Executive Vice President and Chief Financial Officer	
 	 	 	 	
Date: August 8, 2019

 

Exhibit 99.1

 
 	 	 	 	 	
Press Contact:	 	Investor Contact:		
Trinseo	 	Trinseo		
Donna St. Germain	 	David Stasse		
Tel : +1 610-240-3307	 	Tel : +1 610-240-3207		
Email: stgermain@trinseo.com	 	Email: dstasse@trinseo.com		
 
Trinseo Reports Second Quarter 2019 Financial Results; Updates 2019 Full Year Outlook
 
Second Quarter 2019 Highlights
 
 Net income of $28 million, diluted EPS of $0.68 and Adjusted EPS of $0.99
 
 Adjusted EBITDA of $103 million
 
 Cash provided by operating activities of $81 million; Free Cash Flow of $58 million

 	 	Three Months Ended	
 	 	June 30, 	
$millions, except per share data	 	2019	    	2018	
Net Sales	    	$	952	    	$	1,237	
Net Income	 	 	28	 	 	98	
EPS (Diluted) ($)	 	 	0.68	 	 	2.24	
Adjusted Net Income*	 	 	41	 	 	105	
Adjusted EPS ($)*	 	 	0.99	 	 	2.40	
EBITDA*	 	 	88	 	 	162	
Adjusted EBITDA*	 	 	103	 	 	170	

*For a reconciliation of EBITDA, Adjusted EBITDA, and Adjusted Net Income to Net Income, as well as a reconciliation of Adjusted EPS, see note 2 below.
 
BERWYN, Pa —  August 8, 2019 — Trinseo (NYSE: TSE), a global materials company and manufacturer of plastics, latex binders and synthetic rubber, today reported its second quarter 2019 financial results.
 
Net sales in the second quarter decreased 23% versus prior year. Lower prices, mainly due to the pass through of lower raw material costs, resulted in an 11% decrease. In addition, lower volumes across all segments resulted in a 9% decrease. Second quarter net income of $28 million was $70 million below prior year and second quarter Adjusted EBITDA of $103 million was $67 million below prior year due to lower margins in the Feedstocks, Performance Plastics, Latex Binders, and Synthetic Rubber segments, as well as an outage at the Company’s Boehlen, Germany styrene facility during the quarter which had a $12 million unfavorable pre-tax impact on net income and Adjusted EBITDA.
 
Commenting on the Company’s performance, Frank Bozich, Trinseo’s President and Chief Executive Officer, said, “Our second quarter results were impacted by the continued challenging global economic conditions, particularly in Asia and Europe. We saw pockets of optimism for improving conditions as we exited the first quarter. However, this momentum did not continue into the second quarter, which resulted in sequentially weaker conditions for styrene, polycarbonate, and ABS.”
 
Second Quarter Results and Commentary by Business Segment
 
	·		Latex Binders net sales of $230 million for the quarter decreased 18% versus prior year due mainly to the pass through of lower raw material costs. In addition, sales volume was slightly lower versus prior year due to lower sales to the graphical paper and	

carpet markets. Adjusted EBITDA of $21 million was $15 million below prior year due to lower margins from raw material dynamics as well as competitive market conditions.	
 
	·		Synthetic Rubber net sales of $112 million for the quarter decreased 28% versus prior year due mainly to lower SSBR and ESBR sales volumes primarily as a result of weakness in the global tire market and unfavorable currency impacts. Adjusted EBITDA of $13 million was $18 million below prior year due to lower SSBR and ESBR sales volumes and margins due to weak market conditions, and an unfavorable year-over-year net timing impact of $6 million.	
 
	·		Performance Plastics net sales of $347 million for the quarter were 16% below prior year due mainly to lower prices from the pass through of lower raw material costs. Adjusted EBITDA of $34 million was $15 million below prior year due primarily to lower ABS and polycarbonate margins as a result of general market weakness and new polycarbonate supply.	
 
	·		Polystyrene net sales of $207 million for the quarter were 27% below prior year mainly due to the pass through of lower styrene cost and lower sales volumes from customer destocking in the current year in comparison to prior year customer restocking. Adjusted EBITDA of $16 million was $2 million higher than prior year due to higher margins in Europe and Asia as well as lower manufacturing costs, which were partially offset by lower sales volumes.	
 
	·		Feedstocks net sales of $55 million for the quarter were 46% below prior year due mainly to the pass through of lower market styrene prices and lower styrene-related sales .   Adjusted EBITDA of negative $1 million was $33 million lower than pri or year due to lower margins from weaker market conditions as well as lower production volume from an outage at our Boehlen styrene manufacturing facility. The impact of this outage during the second quarter was approximately $12 million; this facility resumed operations at the end of July.	
 
	·		Americas Styrenics Adjusted EBITDA of $40 million for the quarter was $7 million above prior year due mainly to a prior year production outage at its St. James, LA styrene manufacturing facility.	
 
Second Quarter Cash Generation
 
Cash provided by operating activities for the second quarter was $81 million and capital expenditures were $23 million, resulting in Free Cash Flow for the quarter of $58 million. Second quarter cash from operations and Free Cash Flow included approximately $2 million of lower working capital. The Company repurchased approximately 0.5 million shares in the second quarter for approximately $22 million. For a reconciliation of Free Cash Flow to cash provided by operating activities, see Note 3 below.
 
Outlook
 
	·		Full year 2019 net income of $148 million to $177 million and earnings per diluted share of $3.60 to $4.31	
 
	·		Full year 2019 Adjusted EBITDA of $410 million to $450 million and Adjusted EPS of $4.15 to $4.86	
 
Commenting on the outlook for 2019, Bozich said, “We have operated in a difficult business environment for the first seven months of 2019, and our updated outlook reflects no expectation of improvement in the underlying macroeconomic conditions through the remainder of the year. However, we have executed on a number of working capital and business excellence initiatives to improve operating results and cash generation, and we continue to expand these efforts. In addition, we continue to evaluate strategic alternatives for our polycarbonate manufacturing facility in Stade, Germany due to low polycarbonate margins and a challenging outlook, and we are making significant progress on our ongoing strategic review of our business portfolio.”
 
For a reconciliation of full year 2019 net income to Adjusted EBITDA and Adjusted EPS, see Note 2 below. Additionally, refer to the appendix within Exhibit 99.2 of our Form 8-K, dated August 8, 2019, for further details on how net timing impacts are defined and calculated for our segments.
 
Conference Call and Webcast Information
 
Trinseo will host a conference call to discuss its second quarter 2019 financial results on Friday, August 9, 2019 at 10 a.m. Eastern Time.
 
Commenting on results will be Frank Bozich, President and Chief Executive Officer, and David Stasse, Executive Vice President and Chief Financial Officer. The conference call will be available by phone at:
 
Participant Toll-Free Dial-In Number: (833) 241-7248
Participant International Dial-In Number: +1 (647) 689-4212
Conference ID: 5973705

The Company will also offer a live Webcast of the conference call with question and answer session via the registration page of the Trinseo Investor Relations website.
 
Trinseo has posted its second quarter 2019 financial results on the Company’s Investor Relations website. The presentation slides will also be made available in the webcast player prior to the conference call. The Company will also furnish copies of the financial results press release and presentation slides to investors by means of a Form 8-K filing with the U.S. Securities and Exchange Commission.
 
A replay of the conference call and transcript will be archived on the Company’s Investor Relations website shortly following the conference call. The replay will be available until August 9, 2020.
 
About Trinseo
 
Trinseo (NYSE:TSE) is a global materials solutions provider and manufacturer of plastics, latex binders, and synthetic rubber. We are focused on delivering innovative and sustainable solutions to help our customers create products that touch lives every day — products that are intrinsic to how we live our lives — across a wide range of end-markets, including automotive, consumer electronics, appliances, medical devices, lighting, electrical, carpet, paper and board, building and construction, and tires. Trinseo had approximately $4.6 billion in net sales in 2018, with 16 manufacturing sites around the world, and approximately 2,500 employees. For more information visit www.trinseo.com.
 
Use of non-GAAP measures
 
In addition to using standard measures of performance and liquidity that are recognized in accordance with accounting principles generally accepted in the United States of America (“GAAP”), we use additional measures of income excluding certain GAAP items (“non-GAAP measures”), such as Adjusted Net Income, EBITDA, Adjusted EBITDA and Adjusted EPS and measures of liquidity excluding certain GAAP items, such as Free Cash Flow. We believe these measures are useful for investors and management in evaluating business trends and performance each period. These income measures are also used to manage our business and assess current period profitability, as well as to provide an appropriate basis to evaluate the effectiveness of our pricing strategies. Such measures are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance or liquidity, as applicable. The definitions of each of these measures, further discussion of usefulness, and reconciliations of non-GAAP measures to GAAP measures are provided in the Notes to Condensed Consolidated Financial Information presented herein.
 
Note on Forward-Looking Statements
 
This press release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “see,” “tend,” “anticipate,” “target,” “outlook,” “guidance,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements in this press release may include, without limitation, forecasts of performance, growth, net sales, business activity, and other matters that involve known and unknown risks, uncertainties and other factors that may cause results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such factors include, among others: conditions in the global economy and capital markets; the inability of the Company to execute on its business strategy; volatility in costs or disruption in the supply of the raw materials utilized for our products; loss of market share to other producers of chemical products; compliance with laws and regulations impacting our business; changes in laws and regulations applicable to our business; our inability to continue technological innovation and successful introduction of new products; system security risk issues that could disrupt our internal operations or information technology services; the loss of customers; the market price of the Company’s ordinary shares prevailing from time to time; the nature of other investment opportunities presented to the Company from time to time; and the Company’s cash flows from operations. Additional risks and uncertainties are set forth in the Company’s reports filed with the United States Securities and Exchange Commission, which are available at http://www.sec.gov/ as well as the Company’s web site at http://www.trinseo.com. As a result of the foregoing considerations, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release and are not a guarantee of future performance. All forward-looking statements are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

TRINSEO S.A.
 
Condensed Consolidated Statements of Operations
(In millions, except per share data)
(Unaudited)

 	 	Three Months Ended	 	Six Months Ended	
 	 	June 30, 	 	June 30, 	
 	    	2019	    	2018	    	2019	    	2018	
Net sales	    	$	951.8	    	$	1,236.6	    	$	1,964.9	    	$	2,358.1	
Cost of sales	 	 	865.6	 	 	1,073.9	 	 	1,781.2	 	 	2,020.2	
Gross profit	 	 	86.2	 	 	162.7	 	 	183.7	 	 	337.9	
Selling, general and administrative expenses	 	 	71.4	 	 	61.7	 	 	140.3	 	 	126.1	
Equity in earnings of unconsolidated affiliates	 	 	40.3	 	 	33.2	 	 	72.5	 	 	78.8	
Operating income	 	 	55.1	 	 	134.2	 	 	115.9	 	 	290.6	
Interest expense, net	 	 	9.9	 	 	10.8	 	 	20.1	 	 	25.7	
Loss on extinguishment of long-term debt	 	 	 —	 	 	0.2	 	 	 —	 	 	0.2	
Other expense, net	 	 	1.5	 	 	4.5	 	 	5.5	 	 	0.8	
Income before income taxes	 	 	43.7	 	 	118.7	 	 	90.3	 	 	263.9	
Provision for income taxes	 	 	15.7	 	 	20.4	 	 	26.5	 	 	45.3	
Net income	 	$	28.0	 	$	98.3	 	$	63.8	 	$	218.6	
Weighted average shares- basic	 	 	40.8	 	 	43.1	 	 	41.0	 	 	43.3	
Net income per share- basic	 	$	0.69	 	$	2.28	 	$	1.56	 	$	5.05	
Weighted average shares- diluted	 	 	41.1	 	 	43.8	 	 	41.5	 	 	44.2	
Net income per share- diluted	 	$	0.68	 	$	2.24	 	$	1.54	 	$	4.95	

TRINSEO S.A.
 
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited)

 	 	June 30, 	 	December 31, 	
 	    	2019	 	2018	
Assets	    	 	 	 	 	    	
Cash and cash equivalents	 	$	534.9	 	$	452.3	
Accounts receivable, net	 	 	619.8	 	 	648.1	
Inventories	 	 	458.5	 	 	510.4	
Other current assets	 	 	25.3	 	 	20.5	
Investments in unconsolidated affiliates	 	 	199.1	 	 	179.1	
Property, plant, equipment, goodwill, and other intangible assets, net	 	 	828.2	 	 	852.2	
Right-of-use assets - operating	 	 	70.8	 	 	 —	
Total other assets	 	 	67.6	 	 	64.2	
Total assets	 	$	2,804.2	 	$	2,726.8	
Liabilities and shareholders’ equity	 	 	 	 	 	 	
Current liabilities	 	 	579.1	 	 	537.0	
Long-term debt, net	 	 	1,160.5	 	 	1,160.8	
Noncurrent lease liabilities - operating	 	 	55.6	 	 	 —	
Other noncurrent obligations	 	 	263.9	 	 	260.3	
Shareholders’ equity	 	 	745.1	 	 	768.7	
Total liabilities and shareholders’ equity	 	$	2,804.2	 	$	2,726.8	

 

TRINSEO S.A.
 
Condensed Consolidated Statements of Cash Flows
(In millions)
(Unaudited)

 	 	Six Months Ended	
 	 	June 30, 	
 	    	2019	    	2018	
Cash flows from operating activities	    	 	    	    	 	    	
Cash provided by operating activities	 	$	234.0	 	$	182.4	
 	 	 	 	 	 	 	
Cash flows from investing activities	 	 	 	 	 	 	
Capital expenditures	 	 	(47.6)	 	 	(59.5)	
Proceeds from capital expenditures subsidy	 	 	 —	 	 	1.0	
Proceeds from the sale of businesses and other assets	 	 	0.7	 	 	1.8	
Cash used in investing activities	 	 	(46.9)	 	 	(56.7)	
 	 	 	 	 	 	 	
Cash flows from financing activities	 	 	 	 	 	 	
Deferred financing fees	 	 	 —	 	 	(0.6)	
Short-term borrowings, net	 	 	(2.3)	 	 	(0.1)	
Purchase of treasury shares	 	 	(59.1)	 	 	(60.5)	
Dividends paid	 	 	(33.8)	 	 	(31.8)	
Proceeds from exercise of option awards	 	 	0.8	 	 	2.3	
Withholding taxes paid on restricted share units	 	 	(4.0)	 	 	(8.3)	
Net proceeds from issuance of 2024 Term Loan B	 	 	 —	 	 	696.5	
Repayments of 2024 Term Loan B	 	 	(3.5)	 	 	(700.0)	
Cash used in financing activities	 	 	(101.9)	 	 	(102.5)	
Effect of exchange rates on cash	 	 	(1.6)	 	 	(4.6)	
Net change in cash, cash equivalents, and restricted cash	 	 	83.6	 	 	18.6	
Cash, cash equivalents, and restricted cash—beginning of period	 	 	452.3	 	 	432.8	
Cash, cash equivalents, and restricted cash—end of period	 	$	535.9	 	$	451.4	
Less: Restricted cash, included in "Other current assets"	 	 	(1.0)	 	 	 —	
Cash and cash equivalents—end of period	 	$	534.9	 	$	451.4	

 

 

TRINSEO S.A.
 
Notes to Condensed Consolidated Financial Information
(Unaudited)

Note 1: Net sales by Segment

 	 	Three Months Ended	 	Six Months Ended	
 	 	June 30, 	 	June 30, 	
(In millions)	 	2019	    	2018	    	2019	    	2018	
Latex Binders	    	$	230.2	    	$	280.8	    	$	454.1	    	$	536.1	
Synthetic Rubber	 	 	112.1	 	 	155.3	 	 	236.7	 	 	304.5	
Performance Plastics	 	 	347.5	 	 	412.8	 	 	716.8	 	 	815.6	
Polystyrene	 	 	207.1	 	 	285.6	 	 	435.6	 	 	525.2	
Feedstocks	 	 	54.9	 	 	102.1	 	 	121.7	 	 	176.7	
Americas Styrenics*	 	 	 —	 	 	 —	 	 	 —	 	 	 —	
Total Net Sales	 	$	951.8	 	$	1,236.6	 	$	1,964.9	 	$	2,358.1	

* The results of this segment are comprised entirely of earnings from Americas Styrenics, our 50%-owned equity method investment. As such, we do not separately report net sales of Americas Styrenics within our condensed consolidated statements of operations.
 
Note 2: Reconciliation of Non-GAAP Performance Measures to Net income
EBITDA is a non-GAAP financial performance measure that we refer to in making operating decisions because we believe it provides our management as well as our investors with meaningful information regarding the Company’s operational performance. We believe the use of EBITDA as a metric assists our board of directors, management and investors in comparing our operating performance on a consistent basis.
We also present Adjusted EBITDA as a non-GAAP financial performance measure, which we define as income from continuing operations before interest expense, net; income tax provision; depreciation and amortization expense; loss on extinguishment of long-term debt; asset impairment charges; gains or losses on the dispositions of businesses and assets; restructuring charges; acquisition related costs and other items. In doing so, we are providing management, investors, and credit rating agencies with an indicator of our ongoing performance and business trends, removing the impact of transactions and events that we would not consider a part of our core operations.
Lastly, we present Adjusted Net Income and Adjusted EPS as additional performance measures. Adjusted Net Income is calculated as Adjusted EBITDA (defined beginning with net income, above), less interest expense, less the provision for income taxes and depreciation and amortization, tax affected for various discrete items, as appropriate. Adjusted EPS is calculated as Adjusted Net Income per weighted average diluted shares outstanding for a given period. We believe that Adjusted Net Income and Adjusted EPS provide transparent and useful information to management, investors, analysts and other stakeholders in evaluating and assessing our operating results from period-to-period after removing the impact of certain transactions and activities that affect comparability and that are not considered part of our core operations.
There are limitations to using the financial performance measures noted above. These performance measures are not intended to represent net income or other measures of financial performance. As such, they should not be used as alternatives to net income as indicators of operating performance. Other companies in our industry may define these performance measures differently than we do. As a result, it may be difficult to use these or similarly-named financial measures that other companies may use, to compare the performance of those companies to our performance. We compensate for these limitations by providing reconciliations of these performance measures to our net income, which is determined in accordance with GAAP.

 

 

 

 	 	Three Months Ended	 	 	
 	 	June 30, 	 	 	
(In millions, except per share data)	    	2019	    	2018	    	 	
Net income	 	$	28.0	    	$	98.3	    	 	
Interest expense, net	 	 	9.9	 	 	10.8	 	 	
Provision for income taxes	 	 	15.7	 	 	20.4	 	 	
Depreciation and amortization	 	 	34.7	 	 	32.3	 	 	
EBITDA	 	$	88.3	 	$	161.8	 	 	
Loss on extinguishment of long-term debt	 	 	 —	 	 	0.2	 	Loss on extinguishment of long-term debt	
Restructuring and other charges (a)	 	 	(0.3)	 	 	1.2	 	Selling, general, and administrative expenses	
Acquisition transaction and integration costs (b)	 	 	0.7	 	 	0.2	 	Selling, general, and administrative expenses	
Other items (c)	 	 	14.1	 	 	6.8	 	Cost of Sales; Selling, general, and administrative expenses; Other expense, net	
Adjusted EBITDA	 	$	102.8	 	$	170.2	 	 	
Adjusted EBITDA to Adjusted Net Income:	 	 	 	 	 	 	 	 	
Adjusted EBITDA	 	 	102.8	 	 	170.2	 	 	
Interest expense, net	 	 	9.9	 	 	10.8	 	 	
Provision for income taxes - Adjusted (d)	 	 	
19.1	 	 	
22.3	 	 	
Depreciation and amortization - Adjusted (e)	 	 	
33.1	 	 	
32.1	 	 	
Adjusted Net Income	 	$	40.7	 	$	105.0	 	 	
Adjusted EPS	 	$	0.99	 	$	2.40	 	 	
 	 	 	 	 	 	 	 	 	
Adjusted EBITDA by Segment:	 	 	 	 	 	 	 	 	
Latex Binders	 	$	20.6	 	$	36.0	 	 	
Synthetic Rubber	 	 	12.9	 	 	30.6	 	 	
Performance Plastics	 	 	34.2	 	 	48.9	 	 	
Polystyrene	 	 	16.2	 	 	13.7	 	 	
Feedstocks	 	 	(0.6)	 	 	32.4	 	 	
Americas Styrenics	 	 	40.3	 	 	33.2	 	 	
Corporate unallocated	 	 	(20.8)	 	 	(24.6)	 	 	
Adjusted EBITDA	 	$	102.8	 	$	170.2	 	 	

	(a)		Restructuring and other charges for the three months ended June 30, 2019 and 2018 primarily relate to decommissioning, contract termination, and employee termination benefit charges incurred in connection with the upgrade and replacement of our compounding facility in Terneuzen, The Netherlands as well as our decision to cease manufacturing activities at our latex binders manufacturing facility in Livorno, Italy. Note that the accelerated depreciation charges incurred in 2018 as part of the upgrade and replacement of the Company’s compounding facility in Terneuzen, The Netherlands are included within the “Depreciation and amortization” caption above, and therefore are not included as a separate adjustment within this caption.	

	(b)		Acquisition, transaction, and integration costs for the three months ended June 30, 2019 and 2018 primarily relate to advisory and professional fees incurred in conjunction with the our acquisition of production assets in Rheinmünster, Germany and our acquisition of API Plastics, respectively.	
 
	(c)		Other items for the three months ended June 30, 2019 and 2018 primarily relate to advisory and professional fees incurred in conjunction with the Company’s initiative to transition business services from Dow, including certain administrative services such as accounts payable, logistics, and IT services. Also included within other items for the three months ended June 30, 2019 are fees incurred in conjunction with certain of the Company’s strategic initiatives.	
 
	(d)		Adjusted to remove the tax impact of the items noted in (a), (b), (c), and (e). The income tax expense (benefit) related to these items was determined utilizing either (1) the estimated annual effective tax rate on our ordinary income based upon our forecasted ordinary income for the full year or, (2) for items treated discretely for tax purposes we utilized the applicable rates in the taxing jurisdictions in which these adjustments occurred. Additionally, the three months ended June 30, 2018 excludes a $1.2 million discrete tax benefit related to certain legal entity restructuring, partially offset by $0.6 million in tax expense related to adjustments in reserves for uncertain tax positions.	

	(e)		For the three months ended June 30, 2019, the amount excludes accelerated depreciation of $1.6 million related to the shortening of the useful life of certain information technology assets related to the transition of business services from The Dow Chemical Company (noted in (c) above). For the three months ended June 30, 2018, the amount excludes accelerated depreciation of $0.3 million related to the upgrade and replacement of the Company’s compounding facility in Terneuzen, The Netherlands.	
 
For the same reasons discussed above, we are providing the following reconciliation of forecasted net income to forecasted Adjusted EBITDA and Adjusted EPS for the full year ended December 31, 2019. See “Note on Forward-Looking Statements” above for a discussion of the limitations of these forecasts.

 	 	Year Ended	
 	 	December 31, 	
(In millions, except per share data)	 	2019	
Adjusted EBITDA	    	$	410 – 450	
Interest expense, net	 	 	
(42)	
Provision for income taxes	 	 	(57) – (68)	
Depreciation and amortization	 	 	
(137)	
Reconciling items to Adjusted EBITDA (f)	 	 	(26)	
Net Income	 	 	148 – 177	
Reconciling items to Adjusted Net Income (f)	 	 	22	
Adjusted Net Income	 	 	170 – 199	
 	 	 	 	
Weighted average shares - diluted (g)	 	 	41.0	
EPS - diluted	 	$	3.60 – 4.31	
Adjusted EPS	 	$	4.15 – 4.86	

	(f)		Reconciling items to Adjusted EBITDA and Adjusted Net Income are not typically forecasted by the Company based on their nature as being primarily driven by transactions that are not part of the core operations of the business. As such, for the forecasted full year ended December 31, 2019, we have not included estimates for these items.	
 
	(g)		Weighted average shares calculated for the purpose of forecasting Adjusted EPS do not forecast significant future share transactions or events, such as repurchases, significant share-based compensation award grants, and changes in the Company’s share price. These are all factors which could have a significant impact on the calculation of Adjusted EPS during actual future periods.	
 
Note 3: Reconciliation of Non-GAAP Liquidity Measures to Cash from Operations
The Company uses Free Cash Flow to evaluate and discuss its liquidity position and results. Free Cash Flow is defined as cash from operating activities, less capital expenditures. We believe that Free Cash Flow provides an indicator of the Company’s ongoing ability to generate cash through core operations, as it excludes the cash impacts of various financing transactions as well as cash flows from business combinations that are not considered organic in nature. We also believe that Free Cash Flow provides management and investors with a useful analytical indicator of our ability to service our indebtedness, pay dividends (when declared), and meet our ongoing cash obligations.
Free Cash Flow is not intended to represent cash flows from operations as defined by GAAP, and therefore, should not be used as an alternative for that measure. Other companies in our industry may define Free Cash Flow differently than we do. As a result, it may be difficult to use this or similarly-named financial measures that other companies may use, to compare the liquidity and cash generation of those companies to our own. The Company compensates for these limitations by providing the reconciliation below, which is determined in accordance with GAAP.
 
Free Cash Flow

 	 	Three Months Ended	 	Six Months Ended	
 	 	June 30, 	 	June 30, 	
(In millions)	 	2019	 	2018	 	2019	    	2018	
Cash provided by operating activities	    	$	80.8	    	$	141.6	    	$	234.0	    	$	182.4	
Capital expenditures	 	 	(22.6)	 	 	(28.9)	 	 	(47.6)	 	 	(59.5)	
Free Cash Flow	 	$	58.2	 	$	112.7	 	$	186.4	 	$	122.9	

 

Exhibit 99.2
	1 ™ Trademark of Trinseo S.A. or its affiliates ™ Trademark of Trinseo S.A. or its affiliates August 8, 2019 Second Quarter 2019 Financial Results	

	2 Disclosure Rules Cautionary Note on Forward-Looking Statements. This presentation contains forward-looking statements including, without limitation, statements concerning plans, objectives, goals, projections, strategies, future events or performance, and underlying assumptions and other statements, which are not statements of historical facts or guarantees or assurances of future performance. Forward-looking statements may be identified by the use of words like “expect,” “anticipate,” “intend,” “forecast,” “outlook,” “will,” “may,” “might,” “see,” “tend,” “assume,” “potential,” “likely,” “target,” “plan,” “contemplate,” “seek,” “attempt,” “should,” “could,” “would” or expressions of similar meaning. Forward-looking statements reflect management’s evaluation of information currently available and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Factors that might cause such a difference include, but are not limited to, those discussed in our Annual Report on Form 10-K, under Part I, Item 1A —“Risk Factors” and elsewhere in our other reports filed with the U.S. Securities and Exchange Commission. As a result of these or other factors, our actual results may differ materially from those contemplated by the forward-looking statements. Therefore, we caution you against relying on any of these forward-looking statements. The forward-looking statements included in this presentation are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. This presentation contains financial measures that are not in accordance with generally accepted accounting principles in the US (“GAAP”) including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted EPS and Free Cash Flow. We believe these measures provide relevant and meaningful information to investors and lenders about the ongoing operating results of the Company. Such measures when referenced herein should not be viewed as an alternative to GAAP measures of performance or liquidity, as applicable. We have provided a reconciliation of these measures to the most comparable GAAP metric alongside of the respective measure or otherwise in the Appendix section of this presentation. Introductions • Frank Bozich, President & CEO • David Stasse, Executive Vice President & CFO Introductions & Disclosure Rules	

	3 *See Appendix for a reconciliation of non-GAAP measures. Highlights • Continued challenging macroeconomic environment impacting most segments; Boehlen styrene outage unfavorable impact of $12 million • Strong performance in Polystyrene and Americas Styrenics, sequential improvement in Latex Binders and Synthetic Rubber 2019 Outlook Q2 2019 Results • Cash from operations of $81 million and Free Cash Flow* of $58 million • Cash from operations of $234 million and Free Cash Flow* of $186 million in the first half of 2019 Q2 Cash Generation • Net income of $148 million to $177 million and Adjusted EBITDA* of $410 million to $450 million • Reflects weak conditions in the global styrene, ABS, and polycarbonate markets • Advancing circular solutions as part of our ongoing sustainability and corporate social responsibility efforts • Continue to evaluate strategic options for polycarbonate manufacturing facility in Stade • Business excellence initiatives underway to improve profitability Key Initiatives	

	4 Products & Innovations Safety Corporate Citizenship • Trinseo is top decile performer •Injury rate was 0.21, per 200,000 hours worked* • Safety policy includes both employees and contractors in injury count, unlike many peers. • Trinseo employees spent nearly 2,400 hours supporting local organizations during 2018 Volunteer Days, with more than 20 event locations across the globe Sustainability and CSR Highlights 2018 Sustainability Journey • Completed a stakeholder analysis as part of Global Reporting Initiative reporting standards; distilled feedback to determine material topics for stakeholders and Trinseo • GRI Standards: Core Option • Increase transparency and accountability PLASTICS • Advanced resins for smart devices and smart homes • Polymers for electric vehicles, providing lighter weight and aesthetic interiors • Introduced newest lightweight footwear solutions with APILON™ 52EXP and APILON™ LIGHT LATEX BINDERS • VOLTABOND™ Latex Binders offer highly efficient adhesives inside lithium ion batteries SYNTHETIC RUBBER • New capabilities for SSBR Rubber used in high performance tires to reduce rolling resistance, improve fuel efficiency of vehicles Environmental Protection Since 2011, Trinseo has reduced: • Electricity usage by 10% • Water consumption by 31% • Total waste by 36% • Green House Gas (GHG) emissions by 48% • Volatile Organic Compounds (VOC) emissions by 51% • Nitrogen Oxide (NOx) by 27% * According to OSHA methodology. ** According to Bureau of labor Statistics for 2016 (latest available US only). *** According to the American Chemistry Council, 2016 (latest available)	

	5 • Price decline due mainly to the pass-through of lower styrene and butadiene costs • Decline in earnings versus prior year due to lower volumes and margins across several segments from market weakness including the global automotive and tire markets, exacerbated by the continued economic slowdown in China • Boehlen styrene production outage resulted in a $12 million unfavorable impact during the quarter Trinseo Q2 2019 Financial Results $0.68 $0.99 $2.24 $2.40 Diluted EPS Adj EPS* EPS ($) Q2'19 Q2'18 $952 $28 $1,237 $98 Net Sales Net Income Net Sales & Net Income ($MM) Q2'19 Q2'18 $103 $170 Q2'19 Q2'18 Adjusted EBITDA* ($MM) * See Appendix for a reconciliation of non-GAAP measures. Net Sales Vol Price FX Total (9%) (11%) (3%) (23%)	

	6 • Lower net sales due to lower raw material pass-through and pricing pressure • Adjusted EBITDA lower than prior year due to margin compression from market competitiveness and net timing impacts Latex Binders $230 $281 Q2'19 Q2'18 Net Sales ($MM) $21 $36 Q2'19 Q2'18 Adjusted EBITDA ($MM) 128 131 Q2'19 Q2'18 Volume (kt) Vol Price FX Total (2%) (14%) (2%) (18%)	

	7 • Lower volume in ESBR and, to a lesser extent, SSBR caused by slowdown in auto production globally and weakness in Europe and Asia replacement tire markets • Continued margin pressure in ESBR from market weakness, particularly in China Synthetic Rubber $112 $155 Q2'19 Q2'18 Net Sales ($MM) $13 $31 Q2'19 Q2'18 Adjusted EBITDA ($MM) 58 73 Q2'19 Q2'18 Volume (kt) Vol Price FX Total (18%) (5%) (5%) (28%)	

	8 • Lower net sales from raw material pass-through and continued pricing pressure in polycarbonate • Adjusted EBITDA below prior year due to lower polycarbonate and ABS margins driven primarily by weak China demand Performance Plastics $347 $413 Q2'19 Q2'18 Net Sales ($MM) $34 $49 Q2'19 Q2'18 Adjusted EBITDA ($MM) 158 160 Q2'19 Q2'18 Volume (kt) Vol Price FX Total (1%) (12%) (3%) (16%)	

	9 • Lower volume versus prior year due to customer restocking in Q2 2018 versus customer destocking in Q2 2019 • Adjusted EBITDA higher versus prior year due to business excellence initiatives Polystyrene $207 $286 Q2'19 Q2'18 Net Sales ($MM) $16 $14 Q2'19 Q2'18 Adjusted EBITDA ($MM) 149 173 Q2'19 Q2'18 Volume (kt) Vol Price FX Total (14%) (11%) (3%) (27%)	

	10 • Lower industry styrene margins versus 2018 from weaker market conditions and a lower level of industry unplanned outages • Boehlen outage resulted in an unfavorable $12 million impact; resumed operations at end of July Feedstocks & Americas Styrenics ($1) $32 Q2'19 Q2'18 Adjusted EBITDA ($MM) FEEDSTOCKS • Dividends: $40 million in Q2 2019 • Earnings higher than prior year due to production outage in Q2 ‘18 • No impacts from Hurricane Barry AMERICAS STYRENICS $40 $33 Q2'19 Q2'18 Adjusted EBITDA ($MM)	

	11 Q3 and Full Year 2019 Outlook Q3 2019 – Similar business environment to Q1 and Q2 • Higher expected Feedstocks EBITDA versus Q2 due to the restart of Boehlen, Germany styrene plant at the end of July, partially offset by lower styrene margins • Lower expected equity affiliate income from Americas Styrenics versus Q2 due to declining styrene margins • Similar sequential performance across remaining segments Full Year 2019 • Net Income of $148 million to $177 million and Adjusted EBITDA* of $410 million to $450 million – reflects current conditions in the global styrene, ABS and polycarbonate markets and overall weaker than expected market dynamics • Cash from operations of $335 million to $375 million and Free Cash Flow* of $210 million to $250 million – assumes minimal sources / uses in working capital over the second half of the year *See Appendix for a reconciliation of non-GAAP measures.	

	12 12 Appendix	

	13 US GAAP to Non-GAAP Reconciliation NOTE: For definitions of non-GAAP measures refer to the accompanying Exhibit 99.1 – Press Release, August 8, 2019. Totals may not sum due to rounding. Profitability Outlook Year Ended (In $millions, unless noted) Dec 31, 2019 Adjusted EBITDA 410 - 450 Interest expense, net (42) Provision for income taxes (57) - (68) Depreciation and amortization (137) Reconciling items to Adjusted EBITDA (26) Net Income 148 - 177 Reconciling items to Net Income 22 Adjusted Net Income 170 - 199 Weighted avg shares - diluted (MM) 41.0 EPS - diluted ($) 3.60 - 4.31 Adjusted EPS ($) 4.15 - 4.86 Cash Outlook Year Ended (In $millions) Dec 31, 2019 Cash provided by operating activities 335 - 375 Capital expenditures (125) Free Cash Flow 210 - 250	

	14 US GAAP to Non-GAAP Reconciliation NOTE: For definitions of non-GAAP measures as well as descriptions of current period reconciling items from Net Income to Adjusted EBITDA and to Adjusted Net Income, refer to the Company’s Form 8-K filed on August 8, 2019. Totals may not sum due to rounding. (in $millions, unless noted) Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2 '19 2016 2017 2018 Net Income 117.3 60.2 33.2 117.7 120.3 98.3 74.7 (0.9) 35.8 28.0 318.3 328.3 292.5 Interest expense, net 18.2 18.7 18.4 14.8 14.9 10.8 10.1 10.6 10.2 9.9 75.0 70.1 46.4 Provision for income taxes 29.3 18.8 8.3 26.4 24.9 20.4 19.2 7.3 10.8 15.7 87.0 82.8 71.8 Depreciation and amortization 24.7 26.3 29.2 30.3 31.9 32.3 31.8 34.2 33.9 34.7 96.4 110.6 130.2 EBITDA 189.5 124.0 89.1 189.2 192.0 161.8 135.8 51.2 90.7 88.3 576.7 591.8 540.9 Loss on extinguishment of long-term debt -- 65.3 -- 0.2 ----- 65.3 0.2 Other items -- 1.6 (21.6) 2.7 6.8 6.1 7.4 11.1 14.1 (4.4) (19.9) 22.8 Restructuring and other charges 2.1 1.1 1.5 1.2 0.5 1.2 0.9 5.6 0.4 (0.3) 23.5 6.0 8.2 Net (gains) / losses on dispositions of businesses and assets (9.9) - 0.2 -(0.5) --(0.5) (0.2) - 15.1 (9.7) (1.0) Acquisition transaction and integration costs - 1.1 3.8 (0.1) 0.3 0.2 0.1 -- 0.7 - 4.7 0.6 Asset impairment charges or write-offs -- 4.3 ---- 1.5 --- 4.3 1.5 Adjusted EBITDA 181.7 126.2 165.8 168.7 195.0 170.2 142.9 65.2 102.0 102.8 610.9 642.5 573.2 Adjusted EBITDA to Adjusted Net Income Adjusted EBITDA 181.7 126.2 165.8 168.7 195.0 170.2 142.9 65.2 102.0 102.8 610.9 642.5 573.2 Interest expense, net 18.2 18.7 18.4 14.8 14.9 10.8 10.1 10.6 10.2 9.9 75.0 70.1 46.4 Provision for income taxes - Adjusted 29.5 19.2 21.0 28.4 26.0 22.3 21.9 10.8 12.7 19.1 94.6 98.2 81.0 Depreciation and amortization - Adjusted 24.2 25.8 28.6 30.0 31.7 32.1 31.5 34.0 33.4 33.1 95.4 108.6 129.1 Adjusted Net Income 109.8 62.5 97.8 95.5 122.4 105.0 79.4 9.8 45.7 40.7 345.9 365.6 316.7 Wtd Avg Shares - Diluted (000) 45,313 44,995 44,782 44,734 44,430 43,810 43,347 43,269 41,762 41,104 47,478 44,973 43,666 Adjusted EPS - Diluted ($) 2.42 1.39 2.18 2.14 2.76 2.40 1.83 0.23 1.09 0.99 7.28 8.13 7.25 Adjustments by Statement of Operations Caption Loss on extinguishment of long-term debt -- 65.3 -- 0.2 ----- 65.3 0.2 Cost of sales -- 2.4 (18.4) - 1.2 - 0.6 ---(16.0) 1.8 Selling, general and administrative expenses 2.1 2.2 7.6 (2.1) 3.5 6.5 7.1 13.8 11.5 14.5 25.9 9.9 30.8 Other expense (income), net (9.9) - 1.4 -(0.5) 0.5 -(0.5) (0.2) - 8.3 (8.5) (0.5) Total EBITDA Adjustments (7.8) 2.2 76.7 (20.5) 3.0 8.4 7.1 14.0 11.3 14.5 34.2 50.7 32.3 Free Cash Flow Reconciliation Cash provided by (used in) operating activities (25.7) 62.3 158.3 196.5 40.8 141.6 56.1 128.0 153.2 80.8 403.7 391.3 366.5 Capital expenditures (36.0) (38.2) (34.6) (38.5) (30.6) (28.9) (31.5) (30.5) (25.0) (22.6) (123.9) (147.4) (121.4) Free Cash Flow (61.7) 24.1 123.7 158.0 10.2 112.7 24.6 97.5 128.2 58.2 279.8 243.9 245.1	

	15 Selected Segment Information * See this Appendix for a reconciliation of non-GAAP measures. NOTE: Totals may not sum due to rounding. (in $millions, unless noted) Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1 '19 Q2 '19 2016 2017 2018 Latex Binders 136 141 144 140 136 130 135 125 124 131 129 125 126 128 561 527 510 Synthetic Rubber 66 67 68 72 81 72 62 65 74 73 64 62 65 58 274 280 273 Performance Plastics 152 155 143 137 156 147 153 154 159 160 165 151 164 158 587 610 636 Polystyrene 171 160 152 155 141 156 159 155 140 173 154 161 174 149 637 612 627 Feedstocks 88 88 94 74 76 108 94 102 65 85 107 80 77 57 344 379 336 Trade Volume (kt) 613 611 601 578 591 613 603 601 563 621 619 579 606 551 2,402 2,408 2,382 Latex Binders 209 232 243 241 289 292 266 250 255 281 278 255 224 230 925 1,097 1,069 Synthetic Rubber 102 111 113 124 163 174 119 127 149 155 138 130 125 112 451 583 573 Performance Plastics 304 326 301 287 337 339 362 381 403 413 401 361 369 347 1,218 1,419 1,578 Polystyrene 208 221 198 201 228 233 238 241 240 286 252 240 228 207 828 941 1,017 Feedstocks 71 79 81 64 87 107 111 103 75 102 131 79 67 55 294 408 387 Net Sales 894 970 935 917 1,104 1,145 1,097 1,102 1,122 1,237 1,200 1,065 1,013 952 3,717 4,448 4,623 Latex Binders 19 21 30 24 37 36 32 33 27 36 25 22 18 21 94 139 110 Synthetic Rubber 23 30 28 29 46 28 (6) 15 26 31 15 5 9 13 111 83 77 Performance Plastics 59 66 53 53 52 48 62 68 66 49 44 31 36 34 232 231 189 Polystyrene 14 15 11 12 14 7 9 19 10 14 5 6 17 16 52 48 34 Feedstocks 21 33 13 14 42 (1) 46 24 42 32 40 (7) 17 (1) 80 111 107 Americas Styrenics 33 38 34 31 18 30 44 31 46 33 35 31 32 40 136 123 144 Corporate (25) (21) (26) (22) (27) (22) (22) (21) (20) (25) (21) (22) (26) (21) (95) (92) (88) Adjusted EBITDA* 143 182 143 142 182 126 166 169 195 170 143 65 102 103 611 642 573 Adj EBITDA Variance Analysis Net Timing** Impacts - Fav/(Unfav) Latex Binders (0) (4) 2 2 (8) 1 (5) 4 (4) 4 (3) 4 (0) (1) (0) (8) 1 Synthetic Rubber (4) 3 1 6 16 (4) (25) 0 2 7 3 (3) (5) 1 6 (13) 9 Performance Plastics 3 (3) (1) 1 (2) (3) 1 2 (0) (3) (1) (5) (1) 0 0 (2) (9) Polystyrene (1) 1 1 1 4 (5) 1 3 (2) 1 (2) (7) 2 (0) 2 3 (9) Feedstocks (2) 4 1 4 11 (11) 4 7 (3) 0 (2) (17) 3 1 7 11 (21) Net Timing** Impacts - Fav/(Unfav) (4) 0 5 14 22 (23) (24) 15 (7) 10 (4) (28) (1) 1 15 (9) (30) **Net Timing is the difference between Raw Material Timing and Price Lag. Raw Material Timing represents the timing of raw material cost changes flowing through cost of goods sold versus current pricing. Price Lag represents the difference in revenue between the current contractual price and the current period price.