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): February 22, 2017

 
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):
 
o                      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o                      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o                      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o                      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 
ITEM 2.02                                     Results of Operations and Financial Condition
 
On February 22, 2017, 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 fourth quarter and year ended December 31, 2016. 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 Thursday, February 23, 2017 at 10 AM Eastern Time. A copy of the presentation materials, which will be discussed on the call, is 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

Exhibit
Number	 	Description	
99.1	 	Press Release, dated February 22, 2017	
99.2	 	Investor Presentation	
 
2 

 
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.

 	TRINSEO S.A.	

 	By:	 /s/ Barry J. Niziolek	
 	Name:	 Barry J. Niziolek	
 	Title:	 Executive Vice President and Chief Financial Officer	
 	 	 	
Date: February 22, 2017	 	
 
3 

 
EXHIBIT INDEX

Exhibit
Number	 	Description	
99.1	 	Press Release, dated February 22, 2017	
99.2	 	Investor Presentation	
 
4 

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 Fourth Quarter and Full Year 2016 Financial Results
 
Year Ended 2016 Summary
 
·                   Net Income of $318 million and diluted EPS of $6.70
 
·                   Adjusted EPS of $7.28
 
·                   Adjusted EBITDA of $611 million
 
·                   Cash provided by operating activities of $404 million; free cash flow of $280 million
 
Fourth Quarter 2016 Summary
 
·                   Net Income of $79 million and diluted EPS of $1.72
 
·                   Adjusted EPS of $1.68
 
·                   Adjusted EBITDA of $142 million
 
·                   Cash provided by operating activities of $79 million; free cash flow of $38 million

 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	
$millions, except per share data	 	2016	 	2015	 	2016	 	2016	 	2015	 	
Net sales	 	917	 	897	 	935	 	3,717	 	3,972	 	
Net Income	 	79	 	43	 	67	 	318	 	134	 	
EPS(Diluted) ($)	 	1.72	 	0.88	 	1.43	 	6.70	 	2.73	 	
Adjusted Net Income*	 	77	 	54	 	80	 	346	 	225	 	
Adjusted EPS ($)*	 	1.68	 	1.11	 	1.70	 	7.28	 	4.59	 	
EBITDA*	 	142	 	115	 	126	 	577	 	394	 	
Adjusted EBITDA*	 	142	 	116	 	143	 	611	 	492	 	

*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 — February 22, 2017 — Trinseo (NYSE: TSE), a global materials company and manufacturer of plastics, latex binders and synthetic rubber, today reported its fourth quarter and full year 2016 financial results with net sales of $917 million and $3,717 million, respectively; net income of $79 million and $318 million, respectively; and earnings per diluted share of $1.72 and $6.70, respectively.  Additionally, results for the fourth quarter and full year included Adjusted EPS of $1.68 and $7.28, respectively, and Adjusted EBITDA of $142 million and $611 million, respectively.
 
Net sales in the fourth quarter increased 2% versus prior year driven primarily by the pass through of higher raw material costs.  Fourth quarter net income of $79 million was $36 million higher than prior year, and fourth quarter Adjusted EBITDA of $142 million was $26 million higher than prior year. These increases were driven primarily by higher sales volume in Synthetic Rubber, higher equity income from Americas Styrenics, as well as higher margins in Feedstocks, Latex Binders, and Performance Plastics, including a favorable impact from raw material timing, net of an unfavorable price lag.
 
Net sales in the full year decreased 6% versus prior year driven primarily by the pass through of lower raw material costs.  Full year net income of $318 million was $184 million higher than prior year. This increase was driven by improved performance across all segments, including record sales volume in Synthetic Rubber, as well as favorable raw material timing and a prior year loss on extinguishment of debt of $95 million, which was partially offset by increased restructuring charges in the current year. Adjusted EBITDA in the full year of $611 million was $119 million higher than prior year which is comprised of about $40 million of favorable raw material timing impacts, net of unfavorable price lag impacts, and about $80 million of fundamental business improvement across the portfolio.

 
Commenting on the Company’s performance, Chris Pappas, Trinseo President and Chief Executive Officer, said, “We continue to see strong fundamental performance across the company. Our full year Net Income and Adjusted EBITDA were better than our previous guidance due to higher than expected styrene margins and favorable raw material timing, net of some unfavorable price lag impacts. Overall for the year, we had record Net Income and Adjusted EBITDA results, including record performance in both our Performance Materials and Basic Plastics & Feedstocks divisions.”
 
Pappas continued, “We also had record cash generation for the year, and we continue to return capital to shareholders. Over the year we repurchased approximately 4.5 million shares, representing about 9% of our outstanding shares, and we initiated a quarterly dividend which we started paying in July.  In total, we returned approximately $242 million to shareholders via these mechanisms. In addition, we announced several important growth initiatives during the year, including an SSBR expansion and pilot plant as well as our first ABS production site in Asia.”
 
Fourth Quarter Results and Commentary by Business Segment
 
·                   Latex Binders net sales of $241 million for the quarter increased 7% versus prior year primarily driven by the pass through of higher raw material costs in North America and Asia. Excluding the recently divested Latin America business, higher sales volume increased net sales by 4%. Adjusted EBITDA of $24 million was $6 million above prior year driven by higher volume to the paper and carpet markets in North America and Asia and lower fixed costs. Sales volume of 309 million pounds was 4% higher than prior year, excluding Latin America, and was the highest result since 2012 on that basis. Asia sales volume was a record high during the quarter.
 
·                   Synthetic Rubber net sales of $124 million for the quarter increased 20% versus prior year driven by higher SSBR and ESBR sales volume as well as the pass through of higher raw material costs. Overall, sales volume was the highest quarter ever driven by record sales of SSBR. Adjusted EBITDA of $29 million was $8 million above prior year driven by higher SSBR and ESBR sales volume.
 
·                   Performance Plastics net sales of $166 million for the quarter was 8% below prior year driven by lower sales volume to the consumer electronics market in Asia and the divestiture of the Latin America business. Adjusted EBITDA of $32 million was $2 million above prior year driven by lower fixed costs.
 
·                   Basic Plastics net sales of $323 million for the quarter was 1% below prior year driven by lower polystyrene sales volume in Europe, which was partially offset by the pass through of higher raw material costs. Adjusted EBITDA of $33 million was $4 million below prior year driven by lower polycarbonate and polystyrene margins, as well as lower Europe polystyrene sales volume, as several industry outages in the prior year had a favorable impact on volume and margin in that period. These items were partially offset by favorable raw material timing.
 
·                   Feedstocks net sales of $64 million for the quarter was 7% above prior year driven by higher styrene prices. Adjusted EBITDA of $14 million was $11 million above prior year driven by higher styrene margins, including favorable raw material timing.
 
·                   Americas Styrenics Adjusted EBITDA of $31 million for the quarter was $4 million above prior year due to higher styrene margins.
 
Fourth Quarter Cash Generation
 
Cash provided by operating activities for the quarter was $79 million and capital expenditures were $41 million, resulting in Free Cash Flow for the quarter of $38 million.  This included $30 million in dividends from Americas Styrenics and $30 million of cash interest payments. At the end of the quarter, the Company had $465 million of cash, inclusive of the $21 million fourth quarter cash outlay for the repurchase of approximately 350,000 shares. For a reconciliation of Free Cash Flow to cash provided by operating activities, see note 3 below.
 
Outlook
 
·                   First quarter 2017 net income of $100 million to $108 million, and earnings per diluted share of $2.19 to $2.37
 
·                   First quarter 2017 Adjusted EBITDA of $170 million to $180 million and Adjusted EPS of $2.19 to $2.37
 
·                   Full year 2017 net income of $310 million and earnings per diluted share of $6.82
 
·                   Full year 2017 Adjusted EBITDA of $580 million and Adjusted EPS of $6.82
 
In the first quarter, increasing raw material prices are expected to result in a pre-tax, favorable raw material timing impact of approximately $80 million, which will be partially offset by a pre-tax, unfavorable price lag impact in Performance Materials of $40 million. In addition, the extended styrene monomer turnaround at America Styrenics is expected to result in an approximately $15 million pre-tax impact in the first quarter as compared to the fourth quarter.

 
Commenting on the outlook for the first quarter and full year 2017 Pappas said, “We expect strong performance in the first quarter and beyond from higher styrene margins, favorable raw material timing, net of an unfavorable price lag, and continued, steady performance across our product lines.”
 
Pappas continued, “Looking ahead to the full year performance, we are affirming our prior 2017 net income and Adjusted EBITDA guidance of $310 million and $580 million, respectively. We continue to see strong business fundamentals across all segments and expect continued strong cash generation. As we move forward, we remain committed to balancing future growth initiatives with returning capital to shareholders. I am very proud of the company’s performance in 2016 and we remain focused on achieving a very strong 2017 and delivering on our growth targets.”
 
For a reconciliation of first quarter and full year 2017 Adjusted EBITDA and Adjusted EPS to net income, see note 2 below.
 
Conference Call and Webcast Information
 
Trinseo will host a conference call to discuss its Fourth Quarter and Year Ended December 31, 2016 financial results tomorrow, Thursday, February 23, 2017 at 10 AM Eastern Time.
 
Commenting on results will be Chris Pappas, President and Chief Executive Officer, Barry Niziolek, Executive Vice President and Chief Financial Officer, and David Stasse, Vice President, Treasury and Corporate Finance. The conference call will be available by phone at:
 
Participant Toll-Free Dial-In Number: +1 844-717-9660
Participant International Dial-In Number: +1 253-336-7413
Conference ID / passcode: 61387998
 
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 Fourth Quarter and Full Year 2016 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 February 23, 2018.
 
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 $3.7 billion in net sales in 2016, with 15 manufacturing sites around the world, and nearly 2,200 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 and liquidity excluding certain GAAP items (“non-GAAP measures”), such as Adjusted EBITDA, Adjusted EPS, and Free Cash Flow. We believe these measures are useful for investors and management in evaluating key business trends and performance each period.  These 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. 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,” “anticipate,” “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 growth, net sales, business activity, acquisitions, financings 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, volatility in costs or disruption in the supply of the raw materials utilized for our products; loss of market share to other producers of styrene-based chemical products; compliance with environmental, health and safety laws; 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. 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 thousands, except per share data)
(Unaudited)

 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,
 2016	 	September 30,
 2016	 	December 31,
 2015	 	December 31,
2016	 	December 31,
2015	 	
Net sales	 	$	917,452	 	$	935,410	 	$	897,012	 	$	3,716,640	 	$	3,971,902	 	
Cost of sales	 	779,622	 	795,026	 	784,688	 	3,129,014	 	3,502,800	 	
Gross profit	 	137,830	 	140,384	 	112,324	 	587,626	 	469,102	 	
Selling, general and administrative expenses	 	60,908	 	73,900	 	54,357	 	241,543	 	207,964	 	
Equity in earnings of unconsolidated affiliates	 	34,419	 	36,686	 	29,141	 	144,733	 	140,178	 	
Operating income	 	111,341	 	103,170	 	87,108	 	490,816	 	401,316	 	
Interest expense, net	 	18,426	 	18,832	 	19,252	 	74,968	 	93,197	 	
Loss on extinguishment of long-term debt	 	—	 	—	 	—	 	—	 	95,150	 	
Other expense (income), net	 	(6,089	)	1,084	 	1,115	 	10,539	 	9,113	 	
Income before income taxes	 	99,004	 	83,254	 	66,741	 	405,309	 	203,856	 	
Provision for income taxes	 	20,497	 	16,000	 	23,609	 	86,997	 	70,209	 	
Net income	 	$	78,507	 	$	67,254	 	$	43,132	 	$	318,312	 	$	133,647	 	
Weighted average shares- basic	 	44,595	 	45,865	 	48,778	 	46,510	 	48,774	 	
Net income per share- basic	 	$	1.76	 	$	1.47	 	$	0.88	 	$	6.84	 	$	2.74	 	
Weighted average shares- diluted	 	45,754	 	46,961	 	49,067	 	47,478	 	48,970	 	
Net income per share- diluted	 	$	1.72	 	$	1.43	 	$	0.88	 	$	6.70	 	$	2.73	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Repayments of equity per share	 	$	0.30	 	$	0.30	 	$	—	 	$	0.90	 	$	—	 	

 
TRINSEO S.A.
 
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)

 	 	December 31,	 	
 	 	2016	 	2015	 	
Assets	 	 	 	 	 	
Current assets	 	 	 	 	 	
Cash and cash equivalents	 	$	465,114	 	$	431,261	 	
Accounts receivable, net of allowance for doubtful accounts	 	564,428	 	494,556	 	
Inventories	 	385,345	 	353,097	 	
Other current assets	 	17,999	 	10,120	 	
Total current assets	 	1,432,886	 	1,289,034	 	
 	 	 	 	 	 	
Investments in unconsolidated affiliates	 	191,418	 	182,836	 	
Property, plant and equipment, net of accumulated depreciation	 	513,757	 	518,751	 	
Other assets	 	 	 	 	 	
Goodwill	 	29,485	 	31,064	 	
Other intangible assets, net	 	177,345	 	158,218	 	
Deferred income tax assets—noncurrent	 	40,187	 	51,395	 	
Deferred charges and other assets	 	24,412	 	27,596	 	
Total other assets	 	271,429	 	268,273	 	
Total assets	 	$	2,409,490	 	$	2,258,894	 	
 	 	 	 	 	 	
Liabilities and shareholders’ equity	 	 	 	 	 	
Current liabilities	 	 	 	 	 	
Short-term borrowings and current portion of long-term debt	 	$	5,000	 	$	5,000	 	
Accounts payable	 	378,029	 	324,629	 	
Income taxes payable	 	23,784	 	20,804	 	
Accrued expenses and other current liabilities	 	135,357	 	98,836	 	
Total current liabilities	 	542,170	 	449,269	 	
Noncurrent liabilities	 	 	 	 	 	
Long-term debt, net of unamortized deferred financing fees	 	1,160,369	 	1,177,120	 	
Deferred income tax liabilities—noncurrent	 	24,844	 	25,764	 	
Other noncurrent obligations	 	237,054	 	217,727	 	
Total noncurrent liabilities	 	1,422,267	 	1,420,611	 	
 	 	 	 	 	 	
Commitments and contingencies	 	 	 	 	 	
Shareholders’ equity	 	 	 	 	 	
Ordinary shares, $0.01 nominal value, 50,000,000 shares authorized (December 31, 2016: 48,778 shares issued and 44,301 shares outstanding ; December 31, 2015: 48,778 shares issued and outstanding)	 	488	 	488	 	
Additional paid-in-capital	 	573,662	 	556,532	 	
Treasury shares, at cost (December 31, 2016: 4,477 shares; December 31, 2015: zero shares)	 	(217,483	)	—	 	
Retained Earnings (accumulated deficit)	 	258,540	 	(18,289	)	
Accumulated other comprehensive loss	 	(170,154	)	(149,717	)	
Total shareholders’ equity	 	445,053	 	389,014	 	
Total liabilities and shareholders’ equity	 	$	2,409,490	 	$	2,258,894	 	

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

 	 	Year Ended
December 31,	 	
 	 	2016	 	2015	 	
Cash flows from operating activities	 	 	 	 	 	
Cash provided by operating activities	 	$	403,658	 	$	353,249	 	
 	 	 	 	 	 	
Cash flows from investing activities	 	 	 	 	 	
Capital expenditures	 	(123,873	)	(109,267	)	
Proceeds from capital expenditures subsidy	 	—	 	2,191	 	
Proceeds from the sale of businesses and other assets	 	1,974	 	818	 	
Distributions from unconsolidated affiliates	 	4,809	 	—	 	
Increase in restricted cash	 	(204	)	(413	)	
Cash used in investing activities	 	(117,294	)	(106,671	)	
 	 	 	 	 	 	
Cash flows from financing activities	 	 	 	 	 	
Deferred financing fees	 	—	 	(28,197	)	
Short-term borrowings, net	 	(253	)	(18,396	)	
Repayments of term loans	 	(5,000	)	(2,500	)	
Purchase of treasury shares	 	(215,083	)	—	 	
Repayments of equity on ordinary shares	 	(27,316	)	—	 	
Proceeds from exercise of option awards	 	214	 	—	 	
Withholding taxes paid on restricted share units	 	(98	)	—	 	
Net proceeds from issuance of 2021 Term Loan B	 	—	 	498,750	 	
Net proceeds from issuance of 2022 Senior Notes	 	—	 	716,625	 	
Repayments of 2019 Senior Notes	 	—	 	(1,192,500	)	
Proceeds from Accounts Receivable Securitization Facility	 	—	 	25,000	 	
Repayments of Accounts Receivable Securitization Facility	 	—	 	(25,000	)	
Cash used in financing activities	 	(247,536	)	(26,218	)	
Effect of exchange rates on cash	 	(4,975	)	(9,885	)	
Net change in cash and cash equivalents	 	33,853	 	210,475	 	
Cash and cash equivalents—beginning of period	 	431,261	 	220,786	 	
Cash and cash equivalents—end of period	 	$	465,114	 	$	431,261	 	

 
TRINSEO S.A.
 
Notes to Condensed Consolidated Financial Information
(Unaudited)
 
Note 1: Net sales by Segment

 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	December 31,	 	
(In thousands) 	 	2016	 	2016	 	2015	 	2016	 	2015	 	
Latex Binders	 	$	240.8	 	$	242.6	 	$	225.5	 	$	925.3	 	$	966.2	 	
Synthetic Rubber	 	124.4	 	112.7	 	103.9	 	450.7	 	474.6	 	
Performance Plastics	 	165.6	 	175.4	 	180.7	 	693.4	 	742.8	 	
Basic Plastics	 	323.0	 	323.7	 	327.4	 	1,352.7	 	1,478.1	 	
Feedstocks	 	63.7	 	81.0	 	59.5	 	294.5	 	310.2	 	
Americas Styrenics*	 	—	 	—	 	—	 	—	 	—	 	
Total Net sales	 	$	917.5	 	$	935.4	 	$	897.0	 	$	3,716.6	 	$	3,971.9	 	

* 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 consolidated statement 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 and other items.  In doing so, we are providing management investors, and credit rating agencies with a stronger 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	 	Year Ended	 	 	 	
(In millions, except per share data)	 	December 31,
2016	 	September 30,
2016	 	December 31,
2015	 	December 31,
2016	 	December 31,
2015	 	 	 	
Net income	 	$	78.5	 	$	67.3	 	$	43.1	 	$	318.3	 	$	133.6	 	 	 	
Interest expense, net	 	18.4	 	18.8	 	19.3	 	75.0	 	93.2	 	 	 	
Provision for income taxes	 	20.5	 	16.0	 	23.6	 	87.0	 	70.2	 	 	 	
Depreciation and amortization	 	24.7	 	23.8	 	29.5	 	96.4	 	96.8	 	 	 	
EBITDA	 	$	142.1	 	$	125.9	 	$	115.5	 	$	576.7	 	$	393.8	 	 	 	
Loss on extinguishment of long-term debt	 	—	 	—	 	—	 	—	 	95.2	 	Loss on extinguishment of long-term debt	 	
Net loss on disposition of businesses and assets (a)	 	1.8	 	0.3	 	—	 	15.1	 	—	 	Other expense (income), net	 	
Restructuring and other charges (b)	 	4.9	 	16.8	 	0.2	 	23.5	 	0.8	 	Selling, general, and administrative expenses	 	
Other items (c)	 	(6.8	)	0.3	 	—	 	(4.4	)	2.2	 	Other expense (income), net; Selling, general, and administrative expenses	 	
Adjusted EBITDA	 	$	142.0	 	$	143.3	 	$	115.7	 	$	610.9	 	$	492.0	 	 	 	
Adjusted EBITDA to Adjusted Net Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA	 	$	142.0	 	$	143.3	 	$	115.7	 	$	610.9	 	$	492.0	 	 	 	
Interest expense, net	 	18.4	 	18.8	 	19.3	 	75.0	 	93.2	 	 	 	
Provision for income taxes — Adjusted (d)	 	22.0	 	21.4	 	18.7	 	94.6	 	84.9	 	 	 	
Depreciation and amortization — Adjusted (e)	 	24.7	 	23.3	 	23.4	 	95.4	 	89.3	 	 	 	
Adjusted Net Income	 	$	76.9	 	$	79.8	 	$	54.3	 	$	345.9	 	$	224.6	 	 	 	
Adjusted EPS	 	$	1.68	 	$	1.70	 	$	1.11	 	$	7.28	 	$	4.59	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA by Segment:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Latex Binders	 	$	24.3	 	$	29.8	 	$	18.3	 	$	94.3	 	$	79.0	 	 	 	
Synthetic Rubber	 	29.1	 	28.5	 	21.0	 	110.9	 	93.0	 	 	 	
Performance Plastics	 	32.5	 	30.2	 	29.7	 	136.2	 	107.6	 	 	 	
Basic Plastics	 	33.1	 	34.2	 	36.8	 	148.2	 	115.6	 	 	 	
Feedstocks	 	14.2	 	12.7	 	3.2	 	80.2	 	51.3	 	 	 	
Americas Styrenics	 	30.9	 	34.3	 	27.3	 	135.8	 	135.3	 	 	 	
Corporate unallocated	 	(22.1	)	(26.4	)	(20.6	)	(94.7	)	(89.8	)	 	 	
Adjusted EBITDA	 	$	142.0	 	$	143.3	 	$	115.7	 	$	610.9	 	$	492.0	 	 	 	

(a)                   Net loss on disposition of businesses and assets for the periods presented above relates to impairment charges recorded for the loss on sale of the Company’s primary operating entity in Brazil, which included both latex binders and automotive businesses.
 
(b)                   Restructuring and other charges for the 2016 periods presented above relate primarily to $20.0 million in charges incurred during the year ended December 31, 2016 in connection with the decision to cease manufacturing activities at the Company’s latex binders manufacturing facility in Livorno, Italy, approximately $3.9 million of which was incurred during the three months ended December 31, 2016. The remaining restructuring charges for 2016 relate to the Company’s decision to divest our operations in Brazil as well as the closure of our Allyn’s Point latex binders manufacturing facility. Restructuring and other charges for the 2015 periods presented above relate primarily to the polycarbonate restructuring within our Basic Plastics segment and charges incurred in connection with the closure of our Allyn’s Point latex binders manufacturing facility.
 
(c)                    Other items for the year ended December 31, 2016 primarily includes other income of $6.9 million from the effective settlement of certain value-added tax positions, which were recorded during the fourth quarter of 2016, offset by $2.5 million of fees incurred in conjunction with the Company’s secondary offerings completed during the year. Other items for the year ended December 31, 2015 primarily consist of costs related to the process of changing our corporate name from Styron to Trinseo.
 
(d)                   Adjusted to remove the tax impact of loss on extinguishment of long term debt and the items noted in (a), (b), (c), and (e). In interim periods, 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. For

 
the full year and fourth quarter, the income tax expense (benefit) related to these items was determined utilizing the applicable rates in the taxing jurisdictions in which these adjustments occurred.
 
Additionally, the three months and year ended December 31, 2016 exclude a net benefit of $0.6 million and $0.9 million, respectively, related to adjustments in reserves for uncertain tax positions.  The three months and year ended December 31, 2016 also excluded $0.5 million and $1.6 million, respectively, in benefits recognized related to provision to return adjustments. Additionally, the three months ended September 30, 2016 excludes both a $0.9 million tax benefit recognized due to the effective settlement of a tax audit which allowed for the release of a reserve for an uncertain tax position, and a $0.5 million tax benefit recognized related to provision to return adjustments.
 
The three months and year ended December 31, 2015 exclude $6.6 million of tax expense for the discrete impact of a valuation allowance recognized in China during the fourth quarter as well as $0.6 million of tax expense related to provision to return adjustments. The year ended December 31, 2015 also excludes a $0.6 million tax benefit recognized during the third quarter related to provision to return adjustments.
 
(e)                    For the full year ended December 31, 2016, the amount excludes accelerated depreciation of $0.5 million related to the closure of our Allyn’s Point facility. For the three months and the full year ended December 31, 2015, the amount excludes accelerated depreciation of $5.9 million and $6.7 million, respectively, also related to the closure of our Allyn’s Point facility.
 
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 three months ended March 31, 2017, as well as for the full year ended December 31, 2017.  See “Note on forward-looking statements” above for a discussion of the limitations of these forecasts.

 	 	Three Months Ended	 	Year Ended	 	
(In millions, except per share data)	 	March 31,
2017	 	December 31,
2017	 	
Adjusted EBITDA	 	$	170 - 180	 	$	580	 	
Interest expense, net	 	(19	)	(76	)	
Provision for income taxes	 	(26) – (28)	 	(90	)	
Depreciation and amortization	 	(25	)	(104	)	
Reconciling items to Adjusted EBITDA (f)	 	—	 	—	 	
Net Income	 	100 - 108	 	310	 	
Reconciling items to Adjusted Net Income (f)	 	—	 	—	 	
Adjusted Net Income	 	100 - 108	 	310	 	
 	 	 	 	 	 	
Weighted average shares- diluted (g)	 	45.5	 	45.5	 	
Adjusted EPS	 	$	2.19 - 2.37	 	$	6.82	 	

(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 three months ended March 31, 2017 and full year ended December 31, 2017, 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 stock-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 important 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, make repayments of equity (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.
 
Previously, we calculated Free Cash Flow as cash from both operating and investing activities less the impact of changes in restricted cash.  We have changed how we calculate Free Cash Flow for several reasons.  First, the Company has not reported material restricted cash balances since 2012 (and none are expected based on current practices); therefore, the impact of restricted cash balances has become less meaningful.  In addition, this change to our Free Cash Flow calculation is expected to make it easier for our investors to compare the Company to its peers, as we believe that our revised definition of Free Cash Flow is more aligned to investors’ common understanding of the meaning of this term.
 
The table below provides further detail of how Free Cash Flow is derived for the periods discussed herein.  Prior period financial information has been recast from its previous presentation to reflect the Company’s current method  for calculating Free Cash Flow.
 
Free Cash Flow

 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	December 31,	 	December 31,	 	December 31,	 	
(in millions)	 	2016	 	2015	 	2016	 	2015	 	
Cash provided by operating activities	 	$	79.0	 	$	147.5	 	$	403.7	 	$	353.2	 	
Capital expenditures	 	(41.2	)	(30.2	)	(123.9	)	(109.3	)	
Free Cash Flow	 	$	37.8	 	$	117.3	 	$	279.8	 	$	243.9	 	

Exhibit 99.2
Q4 and Full Year 2016 Financial Results February 23, 2017 ™ Trademark of Trinseo S.A. or its affiliates

Introductions & Disclosure Rules 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,” “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 that report. 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 Adjusted EBITDA, Adjusted Net Income (loss), 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. We have provided a reconciliation of these measures to the most comparable GAAP metric in the Appendix section of this presentation. Introductions Chris Pappas, President & CEO Barry Niziolek, Executive Vice President & CFO David Stasse, Vice President, Treasury & Corporate Finance

3 Key Points Current Business Conditions Strong current business conditions across our portfolio Maintaining or increasing margins Raw material prices increasing sharply Favorable raw material timing impact Unfavorable price lag impact Additional Reporting Transparency Segmentation as of Q4 2016 includes new segments under Basic Plastics & Feedstocks Monthly styrene margin data posting starting in March Disclosure of raw material timing and price lag by division 2017 Guidance Update Q1 Net Income of $100MM to $108MM, Adj EBITDA* of $170MM to $180MM, and EPS of $2.19 to $2.37 Affirming full year Net Income of $310MM, Adj EBITDA* of $580MM, and EPS of $6.82 * See Appendix for reconciliation of non-GAAP measures. Q4 and Full Year 2016 Results Q4 ahead of guidance Record financial performance in 2016 including Net Income, Adj EBITDA*, and cash generation

Earnings 4 Q4 2016 Results Net Income $79MM * See Appendix for reconciliation of non-GAAP measures. (1) Trinseo may contribute cash to investors under Luxembourg law through repayments of equity or a distribution of statutory profits (i.e. a dividend). These may have different personal tax consequences to investors, who are encouraged to consult their tax advisors regarding these tax consequences. Cash Generation Shareholder Return Adjusted EBITDA* $142MM EPS / Adjusted EPS* $1.72 / $1.68 Cash from Operations $79MM Free Cash Flow* $38MM Dividends(1) $13MM Share Repurchases $21MM $0.30 per share dividend payment during the quarter 350 thousand shares repurchased in Q4 Q4 performance higher than Net Income guidance of $54MM to $62MM and Adj EBITDA Guidance of $115MM to $125MM Higher performance driven by favorable raw material timing, net of unfavorable price lag, and higher styrene margins CapEx of $41 million during the quarter

Earnings 5 2016 Results Net Income $318MM * See Appendix for reconciliation of non-GAAP measures. Cash Generation Shareholder Return Adjusted EBITDA* $611MM EPS / Adjusted EPS* $6.70 / $7.28 Cash from Operations $404MM Free Cash Flow* $280MM Dividends $27MM Share Repurchases $215MM Two quarters of $0.30 per share dividend payment ($1.20 annualized) 4.5 million shares repurchased in 2016, representing 9% of beginning-of-year outstanding shares Net income includes $28MM after-tax charges related primarily to divestiture of Latin America business and end of operations at Livorno Adjusted EBITDA better than guidance of $585MM to $595MM due to favorable raw material timing, net of unfavorable price lag, and higher styrene margins Year-end cash of $465 million CapEx of $124 million

6 Note: Division and Segment Adjusted EBITDA excludes Corporate Adjusted EBITDA of ($95) million. Totals may not sum due to rounding. 2016 Financial Results & Highlights Record profitability in Performance Materials division Latin America divestiture End of operations at Livorno SB Latex facility Approval of key Performance Materials growth initiatives to drive targeted $100 million EBITDA growth by 2019 SSBR expansion SSBR pilot plant Performance Plastics Long-Glass Fiber New Asia ABS facility Record Adjusted EBITDA in Basic Plastics & Feedstocks division and in each segment Supply / demand dynamics remain tight across styrene, polycarbonate, and ABS Sale of 50% JV stake in SSPC (Q1 2017) Performance Materials Net Sales: $2,069MM Adj EBITDA: $341MM Latex Binders Net Sales: $925MM Adj EBITDA: $94MM Synthetic Rubber Net Sales: $451MM Adj EBITDA: $111MM Performance Plastics Net Sales: $693MM Adj EBITDA: $136MM Basic Plastics & Feedstocks Net Sales: $1,647MM Adj EBITDA: $364MM Basic Plastics Net Sales: $1,353MM Adj EBITDA: $148MM Feedstocks Net Sales: $294MM Adj EBITDA: $80MM Americas Styrenics Adj EBITDA: $136MM

7 Raw Material Timing / Price Lag Represents the timing of raw material cost changes flowing through COGS versus current pricing Primarily key materials such as benzene, butadiene, and bisphenol-A RAW MATERIAL TIMING PRICE LAG Represents the difference in revenue between the current contractual price and the current period price Primarily key materials in pass-through pricing agreements such as styrene and butadiene March Example: Business with 60 days inventory & 30 days price lag March COGS based on January raw material price March revenue based on February raw material price Favorable net timing impact as revenue basis ˃ cost basis ILLUSTRATIVE EXAMPLE COGS Basis (60-day lag) Revenue Basis (30-day lag) Raw Material Timing Impact Price Lag Impact Source: IHS (Historical) / Trinseo (Forercast). Butadiene: W. Europe Contract-Market (Del (-09EXW) W. Europe) Oct '16 Nov '16 Dec '16 Jan '17 Feb '17 Mar '17 Europe Butadiene ($/MT)

8 Cumulative Timing Impact Raw material timing and price lag tend to offset each other in Performance Materials Basic Plastics & Feedstocks typically impacted only by raw material timing $MM: Favorable / (Unfavorable) BP&F Raw Material Timing ($42) $29 ($28) ($17) ($10) $13 $7 $20 $80 $28 ($14) $6 $15 $3 ($12) ($0) ($6) ($40) Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17E Quarterly Raw Material Timing (Trinseo) Quarterly Price Lag (Trinseo) Cumulative RM Timing (Trinseo) Cumulative Price Lag (Performance Materials) Cumulative RM Timing (Performance Materials)

Strong Q4 Performance Materials results and higher than expected Trinseo performance due to styrene monomer margin and $15 million of favorable raw material timing, net of price lag Trinseo Q4 2016 Financial Results 9 * See Appendix for reconciliation of non-GAAP measures. $142 $116 Adj EBITDA* Adjusted EBITDA* ($MM) Q4'16 Q4'15 $1.72 $1.68 $0.88 $1.11 EPS Adj EPS* EPS ($) Q4'16 Q4'15 $917 $79 $897 $43 Net Sales Net Income Net Sales & Net Income ($MM) Q4'16 Q4'15

Net sales increase driven by the pass through of raw material costs Volume flat despite Latin America divestiture; record sales volume in Asia Higher Adj EBITDA driven by volume and lower fixed costs Latex Binders 10 $241 $226 Q4'16 Q4'15 Net Sales ($ MM) $24 $18 Q4'16 Q4'15 Adjusted EBITDA ($MM) 309 308 Q4'16 Q4'15 Volume (MM Lbs)

Continued strong performance tire market Net sales and Adj EBITDA increases driven by higher SSBR and ESBR sales volumes Record quarterly and annual sales volume in Q4 and 2016 Synthetic Rubber 11 $124 $104 Q4'16 Q4'15 Net Sales ($ MM) $29 $21 Q4'16 Q4'15 Adjusted EBITDA ($MM) 159 134 Q4'16 Q4'15 Volume (MM Lbs)

Net sales decline driven by lower sales volume to Asia consumer electronics market as well as Latin America divestiture Auto 2016 volume up 5% vs prior year excluding Latin America Performance Plastics 12 $166 $181 Q4'16 Q4'15 Net Sales ($ MM) $32 $30 Q4'16 Q4'15 Adjusted EBITDA ($MM) 137 146 Q4'16 Q4'15 Volume (MM Lbs)

Net sales decline from lower Europe polystyrene sales volume, partially offset by raw material pass through Adj EBITDA decrease driven by lower margins due to prior year industry outages Basic Plastics 13 $323 $327 Q4'16 Q4'15 Net Sales ($ MM) $33 $37 Q4'16 Q4'15 Adjusted EBITDA ($MM) 506 525 Q4'16 Q4'15 Volume (MM Lbs)

Adjusted EBITDA increase driven by higher styrene margins as well as favorable raw material timing Results exceeded guidance due to unplanned outages in December Feedstocks & Americas Styrenics 14 FEEDSTOCKS Improvement versus prior year driven by higher styrene margins $30 million Q4 dividend AMERICAS STYRENICS $14 $3 Q4'16 Q4'15 Adjusted EBITDA ($MM) $31 $27 Q4'16 Q4'15 Adjusted EBITDA ($MM)

Cash Generation 15 *Free Cash Flow = cash from operating activities less capital expenditures (prior periods have been revised to reflect this definition of Free Cash Flow). 2015 value of $244MM includes a call premium cash use of approximately $69MM. 2014 value of $19MM includes an approximately $56MM cash use related to termination fees for Latex JV Option and Bain Advisory Agreement. See Appendix for reconciliation of non-GAAP measures. NOTE: Totals may not sum due to rounding Summary Record cash generation in 2016 Q4 cash from operating activities of $79 million and free cash flow of $38 million $34 million returned to shareholders in Q4 via dividends / repurchases Year-end cash of $465 million Cash Generation ($MM) $211 $117 $353 $404 $138 $19 $244 $280 2013 2014 2015 2016 Cash From Ops Free Cash Flow*

Western Europe and Asia Styrene Margin Trends 16 Western Europe Margin (1) Asia Margin (2) Q4 to Q1 ~+$50/MT Q4 to Q1 ~+$175/MT Trinseo’s Feedstocks reporting segment captures styrene monomer margin through both internally produced and cost-based purchases of styrene. Annually, we produce nearly 700 kilotons of styrene in Western Europe and purchase approximately 300 kilotons of styrene in Asia with cost-based economics. With all other inputs remaining equal, a $50 per metric ton change in styrene margins would be expected to impact the Feedstocks reporting segment’s annual Adjusted EBITDA by approximately $35 million in Europe and approximately $15 million in Asia. Other factors that could impact the Feedstocks segment Adjusted EBITDA include, but are not limited to, utilities, freight, manufacturing costs, overhead costs, discounts of styrene, benzene, and ethylene, as well as raw material timing. SOURCE: Western Europe Styrene, Benzene, Ethylene Prices: ICIS. Asia Styrene, Benzene, Ethylene prices: IHS. Styrene margin over raw materials: Trinseo. (1) Styrene: W. Europe Contract Monthly Market (Delivered W. Europe); Benzene: 50% W. Europe Spot Avg (CIF NW Europe / Basis ARA) and 50% W. Europe Contract – Market (FOB/CIF W. Europe); Ethylene: W. Europe Contract – Market Pipeline (Delivered W. Europe). (2) Styrene: NE Asia Avg Spot Posting (CFR China); Benzene: NE Asia Spot Avg (FOB S. Korea); Ethylene: NE Asia Spot Avg (CFR NE Asia). Styrene margin over raw materials: Styrene less (80% * Benzene) less (30% * Ethylene). Styrene Ethylene Benzene SM Margin over Raw Materials Styrene Ethylene Benzene SM Margin over Raw Materials $186 $291 $281 $217 $171 $208 $213 $188 $170 $190 $300 $225 $228 $307 $322 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Styrene Margin - USD/MT Prices – USD/MT $270 $261 $365 $425 $426 $493 $320 $287 $294 $254 $276 $393 $323 $497 $639 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Styrene Margin - USD/MT Prices – USD/MT

Q1 2017 Guidance 17 Performance Materials Synthetic Rubber Latex Binders Performance Plastics Sequential margin increase Neutral timing impact Cost initiatives continuing Very strong performance tire market Net $10 - $15 million favorable timing impact Includes ~$5 million unfavorable timing impact Continued steady performance Basic Plastics & Feedstocks Corporate Sequential improvement in styrene margin partially offset by: ~$15 million impact from extended AmSty styrene turnaround $10- $15 million impact from Terneuzen styrene turnaround Includes ~$35 million favorable raw material timing Net Income $100MM - $108MM / EPS $2.19 - $2.37 Adj EBITDA* $170MM - $180MM inclusive of ~$80MM of favorable raw material timing and ~$40MM unfavorable price lag as well as styrene turnaround impacts Adj EPS* $2.19 - $2.37 Adj EBITDA* ($MM) $40 - $45 ~$(25) ~$25 * See Appendix for reconciliation of non-GAAP measures ~$105 ~$30

Full Year 2017 Guidance 18 * See Appendix for reconciliation of non-GAAP measures Corporate Performance Materials Basic Plastics & Feedstocks Styrene Upside Adj EBITDA* $580MM Net Income 2017E $310MM Styrene Upside Styrene upside from unplanned supply outages, higher planned outage impacts and tightening supply/demand ($85) MM $330 MM $335 MM

Appendix

US GAAP to Non-GAAP Reconciliation 20 NOTE: For definitions of non-GAAP measures as well as descriptions of reconciling items from Net Income to Adjusted EBITDA and to Adjusted Net Income, refer to the accompanying Exhibit 99.1 – Press Release, February 22, 2017. Totals may not sum due to rounding. Profitability Guidance Free Cash Flow

US GAAP to Non-GAAP Reconciliation 21 NOTE: Totals may not sum due to rounding.

Selected Segment Information 22 NOTE: Totals may not sum due to rounding.