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): November 1, 2016

 
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 November 1, 2016, 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 third quarter ended September 30, 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 Wednesday, November 2, 2016 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 November 1, 2016	
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: November 1, 2016	 	 	
 
3 

 
EXHIBIT INDEX

Exhibit
Number	 	Description	
99.1	 	Press Release, dated November 1, 2016	
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 Third Quarter 2016 Financial Results; Updates Full Year 2016 Outlook
 
·                   Net Income of $67 million and diluted EPS of $1.43
 
·                   Adjusted EPS of $1.70
 
·                   Adjusted EBITDA of $143 million
 
·                   Cash provided by operating activities of $145 million; free cash flow of $115 million
 
·                   Received authorization to repurchase an additional 2.7 million shares

 	 	Three Months Ended	 	
 	 	September 30,	 	June 30,	 	
$millions, except per share data	 	2016	 	2015	 	2016	 	
Revenue	 	935	 	1,028	 	970	 	
Net Income	 	67	 	52	 	96	 	
EPS (Diluted) ($)	 	1.43	 	1.06	 	2.00	 	
Adjusted Net Income*	 	80	 	52	 	110	 	
Adjusted EPS ($)*	 	1.70	 	1.07	 	2.30	 	
EBITDA*	 	126	 	116	 	168	 	
Adjusted EBITDA*	 	143	 	116	 	182	 	
Inventory revaluation- favorable / (unfavorable)	 	7	 	(28	)	13	 	

*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 — November 1, 2016 — Trinseo (NYSE: TSE), a global materials company and manufacturer of plastics, latex binders and synthetic rubber, today reported its third quarter 2016 financial results with revenue of $935 million, net income of $67 million, and earnings per diluted share of $1.43.  Additionally, results for the third quarter included Adjusted EPS of $1.70 and Adjusted EBITDA of $143 million.
 
Revenue in the third quarter decreased 9% versus prior year driven primarily by the pass through of lower raw material costs.  Third quarter net income of $67 million was $15 million higher than prior year driven primarily by favorable raw material timing, which was partially offset by restructuring charges in the current period. Adjusted EBITDA in the third quarter of $143 million was $27 million higher than prior year driven mainly by favorable raw material timing.
 
Commenting on the Company’s performance, Chris Pappas, Trinseo President and Chief Executive Officer, said, “Our third quarter results were essentially as expected with the exception of styrene margin, which was down slightly from our prior expectations. We continue to see steady performance in our Performance Materials division and overall a higher level of performance in our Basic Plastics & Feedstocks division, even with a reduced contribution from styrene monomer in the currently low turnaround season.”
 
Pappas continued, “We had very strong cash generation during the quarter, and we continue to return capital to shareholders via our quarterly cash distribution as well as share buybacks.  In the third quarter we repurchased approximately 1.8 million shares, and since the beginning of the year we have repurchased about 9% of shares outstanding.  In addition, we recently received authorization to repurchase the remaining availability (approximately 2.7 million shares) under the 4.5 million share repurchase authorization received from shareholders earlier this year.  We remain committed to these initiatives as we view them as an important part of total shareholder return.”

 
Third Quarter Results and Commentary by Business Segment
 
·                   Latex revenue of $243 million for the quarter decreased 5% versus prior year primarily driven by the pass through of lower raw material costs in Europe and Asia.  Adjusted EBITDA of $30 million was $6 million above prior year driven by higher volume to the paper and carpet markets in North America and Asia, as well as favorable raw material timing.  Sales volume of 318 million pounds was in line with the quarterly trend over the last two years.
 
·                   Synthetic Rubber revenue of $113 million for the quarter decreased 11% versus prior year driven by the pass through of lower raw material costs as well as lower sales volume, particularly in SSBR due mostly to delayed shipments into the fourth quarter.  Overall, sales volume was the highest quarter of the year.  Adjusted EBITDA of $28 million was $1 million above prior year as higher margin was mostly offset by lower sales volume.
 
·                   Performance Plastics revenue of $175 million for the quarter was 3% below prior year due to the pass through of lower raw material costs.  Adjusted EBITDA of $25 million was $10 million above prior year due to higher margin, particularly in Europe, as well as favorable inventory timing.
 
·                   Basic Plastics & Feedstocks revenue of $405 million was 13% below prior year driven by the pass through of lower raw material costs.  Adjusted EBITDA of $86 million was $16 million above prior year driven by favorable raw material timing, partially offset by lower styrene margins in Europe and Asia.
 
Cash Generation
 
Cash provided by operating activities was $145 million and capital expenditures were $30 million, resulting in Free Cash Flow for the quarter of $115 million.  This included $40 million in dividends from Americas Styrenics and $6 million of cash interest payments. At the end of the quarter, the Company had $466 million of cash, inclusive of the $100 million third quarter cash outlay for the repurchase of approximately 1.8 million shares.
 
New Segmentation & Changes to Use of Non-GAAP Measures
 
Starting in the fourth quarter of 2016, the Company will realign its reporting segments to provide increased clarity around the drivers of its profitability and cash flow.  First, the existing Basic Plastics & Feedstocks segment will be split into three new segments: Basic Plastics, which includes polystyrene, copolymers, and polycarbonate; Feedstocks, which is styrene monomer; and Americas Styrenics, to reflect its share of the results of its 50%-owned polystyrene joint venture.  In addition, certain grades of acrylonitrile-butadiene-styrene (or ABS) supplied into Performance Plastics markets, which was previously included in the results of Basic Plastics & Feedstocks, will now be included in Performance Plastics.  Finally, the Latex segment will be renamed to Latex Binders.
 
Commenting on the Company’s new segmentation, Barry Niziolek, Executive Vice President and Chief Financial Officer, said, “This new segmentation will continue Trinseo’s approach to providing investors with additional clarity on the drivers of its business performance. Primarily, the split of Basic Plastics & Feedstocks into Basic Plastics, Feedstocks and Americas Styrenics, will now give investors discrete results on these individual components.”
 
In addition, the Company will no longer present Adjusted EBITDA excluding inventory revaluation as a separate non-GAAP financial performance measure.  The Company will, however, continue to present Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS as non-GAAP measures of performance (consistent with our current definitions).  In the future, the Company will continue to separately discuss the impact that raw material purchase price volatility has on results when significant.   This change is being made to better align our use of non-GAAP measures with guidance recently received from the U.S. Securities and Exchange Commission.
 
Outlook
 
·                   Fourth quarter 2016 net income of $54 million to $62 million, and earnings per diluted share of $1.19 to $1.36
 
·                   Fourth quarter 2016 Adjusted EBITDA of $115 million to $125 million and Adjusted EPS of $1.19 to $1.36
 
·                   Full year 2016 net income of $295 million to $303 million, and earnings per diluted share of $6.22 to $6.39
 
·                   Full year 2016 Adjusted EBITDA of $585 million to $595 million and Adjusted EPS of $6.84 to $7.01
 
Commenting on the outlook for the fourth quarter and full year 2016 Pappas said, “We expect our Performance Materials and Basic Plastics performance to continue to be steady in the fourth quarter, but we also expect sequentially lower styrene monomer margins due to a lower level of expected planned turnarounds and continued low global styrenics inventory levels. Our guidance for the full year will be lower due to this styrene monomer margin impact which represents a reduction in margin of about $40 per metric ton across the 1.4 million metric tons of styrene across our business results.”

 
Pappas continued, “This full year 2016 performance represents a year over year improvement in both Performance Materials and Basic Plastics & Feedstocks, which benefitted from about $60 million of styrene margin in 2015 from unplanned outages. We are pleased with this year-over-year improvement and are encouraged about the future of Trinseo, which we will provide detail on in our upcoming investor day conference on November 11.”
 
Conference Call and Webcast Information
 
Trinseo will host a conference call to discuss its Third Quarter 2016 financial results tomorrow, Wednesday, November 2, 2016 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: +1 661-378-9458
Conference ID / passcode: 99128660
 
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 Third Quarter 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 November 2, 2017.
 
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 solution 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 $4.0 billion in revenue in 2015, with 15 manufacturing sites around the world, and more than 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 Repurchases
 
Under the repurchase program approved November 1, 2016, our ordinary shares may be repurchased periodically in open market transactions at prevailing market prices in accordance with federal securities laws. The actual timing, number and value of shares repurchased under the program will be determined by management at its discretion and will depend on a number of factors, including the market price of Trinseo’s ordinary shares, general market and economic conditions, applicable legal requirements, and other business considerations.  Repurchased shares will become treasury shares and may be utilized for general corporate purposes, including reissuance pursuant to Trinseo’s equity-based incentive plan, unless subsequently retired in whole or in part at a meeting of our shareholders. The share repurchase program does not obligate the Company to acquire any particular amount of its ordinary shares, and it may be suspended or terminated at any time in the Company’s discretion.
 
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, revenues, 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. Statements in this press release regarding the Company’s intention to repurchase ordinary shares from time to time under its share repurchase program, the intended use of any repurchased shares, and the source of funding are also forward-looking statements that are subject to risks and uncertainties. Such risk 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	 	Nine Months Ended	 	
 	 	September 30,
2016	 	June 30,
2016	 	September 30,
2015	 	September 30,
2016	 	September 30,
2015	 	
Net sales	 	$	935,410	 	$	969,694	 	$	1,027,952	 	$	2,799,188	 	$	3,074,890	 	
Cost of sales	 	795,026	 	799,954	 	916,390	 	2,349,392	 	2,718,112	 	
Gross profit	 	140,384	 	169,740	 	111,562	 	449,796	 	356,778	 	
Selling, general and administrative expenses	 	73,900	 	52,249	 	51,093	 	180,635	 	153,607	 	
Equity in earnings of unconsolidated affiliates	 	36,686	 	38,602	 	33,489	 	110,314	 	111,037	 	
Operating income	 	103,170	 	156,093	 	93,958	 	379,475	 	314,208	 	
Interest expense, net	 	18,832	 	18,814	 	19,489	 	56,542	 	73,945	 	
Loss on extinguishment of long-term debt	 	—	 	—	 	—	 	—	 	95,150	 	
Other expense, net	 	1,084	 	12,875	 	1,214	 	16,628	 	7,998	 	
Income before income taxes	 	83,254	 	124,404	 	73,255	 	306,305	 	137,115	 	
Provision for income taxes	 	16,000	 	28,600	 	21,200	 	66,500	 	46,600	 	
Net income	 	$	67,254	 	$	95,804	 	$	52,055	 	$	239,805	 	$	90,515	 	
Weighted average shares- basic	 	45,865	 	46,952	 	48,778	 	47,152	 	48,773	 	
Net income per share- basic	 	$	1.47	 	$	2.04	 	$	1.07	 	$	5.09	 	$	1.86	 	
Weighted average shares- diluted	 	46,961	 	47,857	 	48,989	 	48,041	 	48,936	 	
Net income per share- diluted	 	$	1.43	 	$	2.00	 	$	1.06	 	$	4.99	 	$	1.85	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Repayments of equity per share	 	$	0.30	 	$	0.30	 	$	—	 	$	0.60	 	$	—	 	

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

 	 	September 30,	 	December 31,	 	
 	 	2016	 	2015	 	
Assets	 	 	 	 	 	
Current assets	 	 	 	 	 	
Cash and cash equivalents	 	$	466,287	 	$	431,261	 	
Accounts receivable, net of allowance for doubtful accounts	 	511,624	 	494,556	 	
Inventories	 	375,747	 	353,097	 	
Other current assets	 	37,832	 	10,120	 	
Total current assets	 	1,391,490	 	1,289,034	 	
 	 	 	 	 	 	
Investments in unconsolidated affiliates	 	186,999	 	182,836	 	
Property, plant and equipment, net of accumulated depreciation	 	494,927	 	518,751	 	
Other assets	 	 	 	 	 	
Goodwill	 	31,382	 	31,064	 	
Other intangible assets, net	 	177,743	 	158,218	 	
Deferred income tax assets—noncurrent	 	40,936	 	51,395	 	
Deferred charges and other assets	 	29,300	 	27,596	 	
Total other assets	 	279,361	 	268,273	 	
Total assets	 	$	2,352,777	 	$	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	 	331,887	 	324,629	 	
Income taxes payable	 	25,185	 	20,804	 	
Accrued expenses and other current liabilities	 	130,867	 	98,836	 	
Total current liabilities	 	492,939	 	449,269	 	
Noncurrent liabilities	 	 	 	 	 	
Long-term debt, net of unamortized deferred financing fees	 	1,185,873	 	1,177,120	 	
Deferred income tax liabilities—noncurrent	 	25,789	 	25,764	 	
Other noncurrent obligations	 	224,739	 	217,727	 	
Total noncurrent liabilities	 	1,436,401	 	1,420,611	 	
 	 	 	 	 	 	
Commitments and contingencies	 	 	 	 	 	
Shareholders’ equity	 	 	 	 	 	
Ordinary shares, $0.01 nominal value, 50,000,000 shares authorized (September 30, 2016: 48,778 shares issued and 44,653 shares outstanding ; December 31, 2015: 48,778 shares issued and outstanding)	 	488	 	488	 	
Additional paid-in-capital	 	571,504	 	556,532	 	
Treasury shares, at cost (September 30, 2016: 4,125 shares; December 31, 2015: zero shares)	 	(193,165	)	—	 	
Retained Earnings (accumulated deficit)	 	193,285	 	(18,289	)	
Accumulated other comprehensive loss	 	(148,675	)	(149,717	)	
Total shareholders’ equity	 	423,437	 	389,014	 	
Total liabilities and shareholders’ equity	 	$	2,352,777	 	$	2,258,894	 	

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

 	 	Nine Months Ended
September 30,	 	
 	 	2016	 	2015	 	
Cash flows from operating activities	 	 	 	 	 	
Cash provided by operating activities	 	$	324,698	 	$	205,705	 	
 	 	 	 	 	 	
Cash flows from investing activities	 	 	 	 	 	
Capital expenditures	 	(82,678	)	(79,088	)	
Proceeds from capital expenditures subsidy	 	—	 	2,191	 	
Proceeds from the sale of businesses and other assets	 	174	 	689	 	
Distributions from unconsolidated affiliates	 	4,809	 	—	 	
Increase in restricted cash	 	—	 	(413	)	
Cash used in investing activities	 	(77,695	)	(76,621	)	
 	 	 	 	 	 	
Cash flows from financing activities	 	 	 	 	 	
Deferred financing fees	 	—	 	(28,033	)	
Short-term borrowings, net	 	(126	)	(17,703	)	
Repayments of term loans	 	(3,750	)	(1,250	)	
Purchase of treasury shares	 	(194,079	)	—	 	
Repayments of equity on ordinary shares	 	(13,920	)	—	 	
Stock-based compensation activity, net	 	129	 	—	 	
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	 	(211,746	)	(24,111	)	
Effect of exchange rates on cash	 	(231	)	(4,988	)	
Net change in cash and cash equivalents	 	35,026	 	99,985	 	
Cash and cash equivalents—beginning of period	 	431,261	 	220,786	 	
Cash and cash equivalents—end of period	 	$	466,287	 	$	320,771	 	

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

 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	September 30,	 	
(In thousands) 	 	2016	 	2016	 	2015	 	2016	 	2015	 	
Latex	 	$	242.6	 	$	232.5	 	$	254.9	 	$	684.6	 	$	740.7	 	
Synthetic Rubber	 	112.7	 	111.4	 	126.0	 	326.3	 	370.7	 	
Performance Plastics	 	175.4	 	183.9	 	179.9	 	527.9	 	562.1	 	
Basic Plastics & Feedstocks	 	404.7	 	441.9	 	467.2	 	1,260.4	 	1,401.4	 	
Total Revenue	 	$	935.4	 	$	969.7	 	$	1,028.0	 	$	2,799.2	 	$	3,074.9	 	
 
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 both management and investors 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 parties 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.  In addition, these measures are not intended to represent cash flow from operations as defined by GAAP or other measures of liquidity.  As such, they should not be used as alternatives to net income as indicators of operating performance or to cash flow as measures of liquidity. 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	 	 	 	
(In millions, except per share data)	 	September 30,
2016	 	June 30,
2016	 	September 30,
2015	 	 	 	
Net income	 	$	67.3	 	$	95.8	 	$	52.1	 	 	 	
Interest expense, net	 	18.8	 	18.8	 	19.5	 	 	 	
Provision for income taxes	 	16.0	 	28.6	 	21.2	 	 	 	
Depreciation and amortization	 	23.8	 	24.9	 	23.0	 	 	 	
EBITDA	 	$	125.9	 	$	168.1	 	$	115.8	 	 	 	
Net loss on disposition of businesses and assets (a)	 	0.3	 	12.9	 	—	 	Other expense, net	 	
Restructuring and other charges (b)	 	16.8	 	1.1	 	0.1	 	Selling, general, and administrative expenses	 	
Other items (c)	 	0.3	 	0.3	 	0.3	 	Selling, general, and administrative expenses	 	
Adjusted EBITDA	 	$	143.3	 	$	182.4	 	$	116.2	 	 	 	
Adjusted EBITDA to Adjusted Net Income :	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA	 	$	143.3	 	$	182.4	 	$	116.2	 	 	 	
Interest expense, net	 	18.8	 	18.8	 	19.5	 	 	 	
Provision for income taxes — Adjusted (d)	 	21.4	 	28.8	 	22.3	 	 	 	
Depreciation and amortization — Adjusted (e)	 	23.3	 	24.9	 	22.1	 	 	 	
Adjusted Net Income	 	$	79.8	 	$	109.9	 	$	52.3	 	 	 	
Adjusted EPS	 	$	1.70	 	$	2.30	 	$	1.07	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA by Segment :	 	 	 	 	 	 	 	 	 	
Latex	 	$	29.8	 	$	21.5	 	$	24.4	 	 	 	
Synthetic Rubber	 	28.5	 	30.2	 	27.4	 	 	 	
Performance Plastics	 	25.2	 	30.8	 	14.5	 	 	 	
Basic Plastics & Feedstocks	 	86.2	 	121.0	 	70.4	 	 	 	
Corporate unallocated	 	(26.4	)	(21.1	)	(20.5	)	 	 	
Adjusted EBITDA	 	$	143.3	 	$	182.4	 	$	116.2	 	 	 	

(a)                   Net loss on disposition of businesses and assets for the three month periods ended September 30, 2016 and June 30, 2016 represents the impairment charges recorded for the estimated loss on sale of our latex and automotive businesses in Brazil, primarily related to the unrecoverable net book value of property, plant, and equipment along with certain working capital balances.
 
(b)                   Restructuring and other charges for the three months ended September 30, 2016 relate primarily to charges incurred in connection with the decision to cease manufacturing activities at our latex manufacturing facility in Livorno, Italy, consisting of an impairment charge for unrecoverable net book value of property, plant, and equipment and other assets, as well as employee benefit and contract termination charges.  Restructuring and other charges for the three months ended June 30, 2016 relate to charges incurred in connection with the decision to divest our operations in Brazil as well as the closure of our Allyn’s Point manufacturing facility in Gales Ferry, Connecticut.
 
(c)                    Other items for the three months ended September 30, 2016 and June 30, 2016, respectively, relate to fees incurred in conjunction with the Company’s secondary offerings.
 
(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 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 during the period related to provision to return adjustments. The three months ended September 30, 2015 also excludes a $0.6 million tax benefit recognized during that period related to provision to return adjustments.
 
(e)                    For the three months ended September 30, 2015, the amount excludes accelerated depreciation of $0.8 million 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 and full year ended December 31, 2016, 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	 	Year Ended	 	
(In millions, except per share data)	 	December 31,
2016	 	December 31,
2016	 	December 31,
2017	 	
Adjusted EBITDA	 	$	115 - 125	 	$	585 - 595	 	$	580	 	
Interest expense, net	 	(19	)	(76	)	(76	)	
Provision for income taxes	 	(17) – (19	)	(83) – (85	)	(90	)	
Depreciation and amortization	 	(25	)	(97	)	(104	)	
Reconciling items to Adjusted EBITDA (f)	 	—	 	(34	)	—	 	
Net Income	 	54 - 62	 	295 – 303	 	310	 	
Reconciling items to Adjusted Net Income (f)	 	—	 	29	 	—	 	
Adjusted Net Income	 	54 - 62	 	324 - 332	 	310	 	
 	 	 	 	 	 	 	 	
Weighted average shares- diluted (g)	 	45.8	 	47.4	 	 	 	
Adjusted EPS	 	$	1.19 - 1.36	 	$	6.84 - 7.01	 	 	 	

(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 year-end December 31, 2016, we have only included actual, previously disclosed reconciling items, which we have aggregated into a single caption.  The reconciling items to Adjusted Net Income include all reconciling items to Adjusted EBITDA, tax effected, along with adjustments to depreciation and amortization related to restructuring activities (see notes (d) and (e) above).
 
(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	 	Nine Months Ended	 	
 	 	September 30,	 	September 30,	 	September 30,	 	September 30,	 	
(in millions)	 	2016	 	2015	 	2016	 	2015	 	
Cash provided by operating activities	 	$	145.0	 	$	131.0	 	$	324.7	 	$	205.7	 	
Capital expenditures	 	(29.5	)	(35.5	)	(82.7	)	(79.1	)	
Free Cash Flow	 	$	115.5	 	$	95.5	 	$	242.0	 	$	126.6	 	
 
For the same reasons discussed above, we are providing the following reconciliation of forecasted cash provided by operating activities to forecasted Free Cash Flow for the full year ended December 31, 2016.  See “Note on forward-looking statements” above for a discussion of the limitations of this forecast.

 	 	Year Ended	 	
 	 	December 31,	 	
(in millions)	 	2016	 	
Cash provided by operating activities	 	$	485.0	 	
Capital expenditures	 	(135.0	)	
Free Cash Flow	 	$	350.0	 	

Exhibit 99.2
 
Q3 2016 Financial Results November 2, 2016 ™ 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 EBITDA excluding inventory revaluation, 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

Adjusted EBITDA* Sequentially lower styrene margins due to less planned outages and continued low global inventory levels Assumes no impact from inventory revaluation Adjusted EBITDA* Includes $10MM Q3 YTD favorable pre-tax inventory revaluation Estimated Cash from Operations of $485MM and Free Cash Flow* of $350MM 3 Key Points Net Income Includes $16MM pre-tax restructuring charge related to Livorno Q3 RESULTS $67MM Q4 2016 GUIDANCE Adj EBITDA ex Inv Reval* Prior guidance of $140MM to $150MM Includes $3MM accelerated expense related to secondary offering $137MM Cash from Operations Free Cash Flow* of $115MM $100MM of share repurchases $145MM $115MM-$125MM $585MM-$595MM * See Appendix for reconciliation of non-GAAP measures. This will be the last quarter the Company reports Adjusted EBITDA excluding inventory revaluation; Adjusted EBITDA will be the primary non-GAAP earnings measure going forward. FY 2016 GUIDANCE $295MM-$303MM Net Income Includes $10MM Q3 YTD favorable pre-tax inventory revaluation Includes $34MM Q3 YTD pre-tax restructuring-related expenses $54MM-$62MM Net Income Assumes no impact from inventory revaluation

Other Highlights 4 Bain exit; now fully public Share buybacks ~1.8 million shares repurchased during Q3 for $100 million ~9% of shares repurchased since beginning of the year Board of Directors approved additional $100 million repurchase as part of the remaining 2.7 million shares approved by shareholders through June 2018 50kT SSBR expansion Synthetic rubber pilot plant ABS capacity in China Long glass fiber compounds Growth Investments Corporate

Performance Materials Net Sales: $531MM Adj EBITDA: $84MM 5 Basic Plastics & Feedstocks Net Sales: $405MM Adj EBITDA: $86MM Synthetic Rubber Net Sales: $113MM Adj EBITDA: $28MM Latex Net Sales: $243MM Adj EBITDA: $30MM Performance Plastics Net Sales: $175MM Adj EBITDA: $25MM Note: Division and Segment Adjusted EBITDA excludes Corporate Adjusted EBITDA of ($26)MM. Totals may not sum due to rounding. Q3 2016 Results TRINSEO Q3 2016 Net Sales: $935MM Net Income: $67MM Adj EBITDA*: $143MM Adj EBITDA ex Reval*: $7MM * See Appendix for reconciliation of non-GAAP measures.

Solid performance despite lower than expected styrene margins in September Continued strong cash generation Trinseo Q3 2016 Financial Results 6 * See Appendix for reconciliation of non-GAAP measures. $143 $7 $116 ($28) Adj EBITDA* Inv Reval - Fav/(Unfav) Adjusted EBITDA* ($MM) Q3'16 Q3'15 $1.43 $1.70 $1.06 $1.07 EPS Adj EPS* EPS ($) Q3'16 Q3'15 $935 $67 $1,028 $52 Net Sales Net Income Sales & Net Income ($MM) Q3'16 Q3'15

Revenue decrease driven by raw material cost pass through Volume consistent with historical levels Price increases and cost reductions reflected in results Latex 7 $243 $255 Q3'16 Q3'15 Revenue ($MM) $30 $24 Q3'16 Q3'15 Adjusted EBITDA ($MM) 318 307 Q3'16 Q3'15 Volume (MM Lbs)

Continued strong performance-tire market Revenue decrease due to pass through of raw material cost and delayed shipments SSBR expansion announced Synthetic Rubber 8 $113 $126 Q3'16 Q3'15 Revenue ($MM) $28 $27 Q3'16 Q3'15 Adjusted EBITDA ($MM) 150 152 Q3'16 Q3'15 Volume (MM Lbs)

Revenue decline from raw material pass through Auto YTD volume up 5% vs 2016 Improvement versus prior year driven by higher margin in Europe, prior year price lag Performance Plastics 9 $175 $180 Q3'16 Q3'15 Revenue ($MM) $25 $15 Q3'16 Q3'15 Adjusted EBITDA ($MM) 145 144 Q3'16 Q3'15 Volume (MM Lbs)

Revenue decrease driven by pass through of raw material costs Slightly lower than guidance due to September styrene margins and continued low inventory levels Basic Plastics & Feedstocks 10 $405 $467 Q3'16 Q3'15 Revenue ($MM) 711 504 724 493 Segment Volume Polymer Volume Volume (MM Lbs) Q3'16 Q3'15 $86 $3 $70 ($22) Adj EBITDA Inv Reval - Fav/(Unfav) Adjusted EBITDA ($MM) Q3'16 Q3'15

Cash Generation 11 *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 Q3 cash from operating activities of $145 million and free cash flow of $115 million Q3 dividends of $40 million from Americas Styrenics $114 million returned to shareholders in Q3 via repayment of equity / repurchases Cash Generation ($MM) $211 $117 $353 $485 $138 $19 $244 $350 2013 2014 2015 2016E Cash From Ops Free Cash Flow*

Performance Materials 12 Synthetic Rubber Latex Binders Performance Plastics New Reporting Segments starting in Q4 More BP&F detail Feedstocks – primarily revenue and profitability related to the production and procurement of styrene monomer Basic Plastics – polystyrene, copolymers (ABS / SAN), and polycarbonate Americas Styrenics – styrene and polystyrene TRINSEO ABS – splitting profitability between Basic Plastics and Performance Plastics SEGMENTS Basic Plastics & Feedstocks Feedstocks Basic Plastics Americas Styrenics DIVISIONS

13 New Segmentation - Comparison 2 1 Split of ABS profitability between Basic Plastics and Performance Plastics (~$25MM Q3 LTM movement) Additional BP&F disclosure 1 2 3 BP&F improvement driven by all three segments – Basic Plastics, Feedstocks, & Americas Styrenics 3 (in $millions) Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 2014 2015 Q3LTM Old Segmentation Latex 26 27 26 18 21 15 24 18 19 21 30 97 79 88 Synthetic Rubber 43 37 27 30 26 18 27 21 23 30 28 137 93 103 Performance Plastics 17 17 19 16 25 21 15 22 30 31 25 69 83 108 Performance Materials - Adj EBITDA 87 81 72 65 73 55 66 61 72 83 84 304 255 299 Performance Materials - Inventory Reval 5 0 (1) (20) (21) 7 (6) (9) (5) 7 4 (16) (29) (4) Basic Plastics & Feedstocks - Adj EBITDA 23 16 4 (12) 59 122 70 75 97 121 86 31 327 379 BP&F - Inventory Reval 1 2 (0) (52) (21) 23 (22) (8) (4) 6 3 (49) (29) (4) New Segmentation Latex Binders 26 27 26 18 21 15 24 18 19 21 30 97 79 88 Synthetic Rubber 43 37 27 30 26 18 27 21 23 30 28 137 93 103 Performance Plastics 23 21 23 18 30 28 20 30 35 38 30 85 108 133 Performance Materials - Adj EBITDA 93 84 76 67 77 61 72 69 77 90 88 320 280 325 Performance Materials - Inventory Reval 5 0 (1) (21) (22) 7 (6) (10) (5) 7 4 (17) (31) (4) Basic Plastics 2 8 (5) (19) 14 39 25 37 38 43 34 (15) 116 152 Feedstocks (1) (3) (5) (12) 5 35 7 3 21 33 13 (21) 51 69 Americas Styrenics 16 7 11 17 35 41 32 27 33 38 34 50 135 132 Basic Plastics & Feedstocks - Adj EBITDA 17 12 0 (14) 55 115 65 67 92 113 81 15 302 353 BP&F - Inventory Reval 1 2 (0) (50) (20) 22 (22) (7) (4) 6 3 (47) (27) (3)

Western Europe and Asia Styrene Margin Trends 14 Western Europe Margin Asia Margin Q3 to Q4 ~Unchanged Q3 to Q4 -$50/MT Source: IHS (Historical) / Trinseo (Forercast). (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). Margin: Styrene less 80% * Benzene less 30% * Ethylene. Styrene Ethylene Benzene SM Margin Styrene Ethylene Benzene SM Margin Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Styrene Margin - USD/MT Prices – USD/MT Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Styrene Margin - USD/MT Prices – USD/MT

Q4 Styrene Outages 15 Q4 has lower than expected level of planned styrene outages Source: Trinseo Q4: Recent Low Levels 0% 5% 10% 15% 20% Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec % of Global Capacity Styrene Outages – 2016 vs 2013 - 2015 Range & Average 2013-2015 Range 2016 2013-2015 Global Avg

Q4 2016 Guidance - New Segmentation Basis 16 Performance Materials Synthetic Rubber Latex Binders Performance Plastics Price increases implemented Cost initiatives continuing Very strong performance tire market Continued steady volumes Higher maintenance-related costs in Q4 vs Q3 Similar quarter-over-quarter performance Includes ABS profitability from new segmentation Basic Plastics & Feedstocks Corporate Sequentially lower styrene margins impacting Feedstocks and Americas Styrenics Seasonally lower volumes in Basic Plastics Net Income $54MM - $62MM / EPS* $1.19 - $1.36 Adj EBITDA* $115MM - $125MM / Adj EPS $1.19 - $1.36 Adj EBITDA($MM) ~$25 $55 - $65 ~$(22) ~$30 ~$25 * See Appendix for reconciliation of non-GAAP measures

2016 Full Year Guidance 17 Performance Materials Basic Plastics & Feedstocks Corporate Current Guidance Prior Guidance $330 - $340 $320 - $330 ~$350 ~$(95) ~$(90) NOTE: All figures on new segmentation basis ~$375 Lower TSE and AmSty styrene margin, primarily in the fourth quarter Accelerated expense from Bain exit and FX $605 - $615 $585 - $595 Higher Feedstocks and flat Americas Styrenics performance in 2016 versus 2015 despite lower level of industry outages Continued structural improvement Adj EBITDA* $316 - $323 $295 - $303 Net Income * See Appendix for reconciliation of non-GAAP measures Reaffirming 5% year-over-year growth $0 $10 Inventory Reval - Fav/(Unfav) $ Millions $135 $135 2015 2016E Americas Styrenics Adj EBITDA ($MM) $51 $75 2015 2016E Feedstocks Adj EBITDA ($MM)

2017 Guidance 18 Performance Materials Basic Plastics Americas Styrenics Feedstocks Corporate Adj EBITDA* $585MM - $595MM ~$580MM Net Income 2016E $295MM - $303MM 2017E ~$310MM * See Appendix for reconciliation of non-GAAP measures Inventory Reval - Fav/(Unfav) $10MM $0MM $330 - $340 ~ $330 ~ $140 ~ $125 ~ $135 ~ $135 ~ $75 ~ $75 ~ ($95) ~ ($85) 2016E 2017E

19 2016 Investor Day Agenda Breakfast and Product Showcase Overview Chris Pappas – President & CEO New Business Segmentation Martin Pugh – EVP & COO Basic Plastics & Feedstocks Tim Stedman – SVP, Basic Plastics & Feedstocks Division Performance Materials Hayati Yarkadas – SVP, Performance Materials Division Cash Deployment Barry Niziolek – EVP & CFO Wrap-up / Q&A Chris Pappas – President & CEO Logistics Date Friday, November 11 Location St. Regis, New York Time 7:30 AM Breakfast and Product Showcase 8:00 AM Presentations

Q&A

Appendix

US GAAP to Non-GAAP Reconciliation 22 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, November 1, 2016. Totals may not sum due to rounding. Profitability Guidance Free Cash Flow - Reported Free Cash Flow - Guidance

US GAAP to Non-GAAP Reconciliation 23 Reconciliation of Adjusted EBITDA excluding inventory revaluation For description of reconciling items from EBITDA to Adjusted EBITDA, as defined, refer to Note 2 of Exhibit 99.1 – Press Release, dated November 1, 2016, furnished on Form 8-K on November 1, 2016. We present Adjusted EBITDA excluding inventory revaluation in order to facilitate the comparability of results by management and investors from period to period by adjusting cost of sales to reflect the cost of raw materials during the period, which is often referred to as the replacement cost method of inventory valuation. We believe this measure minimizes the impact of raw material purchase price volatility in evaluating our performance by more consistently matching the inventory costs included in cost of sales in a period to the cost of inventory actually sold during that period. In addition, we use Adjusted EBITDA excluding inventory revaluation as a key metric to manage our business and assess our current period profitability as well as the effectiveness of our pricing strategy. We also use Adjusted EBITDA excluding inventory revaluation as the key component of the financial metric used to determine management’s annual performance awards. Our approach to calculating inventory revaluation is intended to represent the difference between our results under the first-in, first-out (“FIFO”) method and the replacement cost method of accounting for inventory. However, our calculation of Adjusted EBITDA excluding inventory revaluation may differ from the replacement cost method if the monthly raw material standard costs are different from the actual raw material prices during the period, or if production and purchase volumes differ from sales volumes during the period. These factors could have a significant impact on our inventory revaluation calculation. When the Company reports its fourth quarter and full year 2016 results, we will no longer present Adjusted EBITDA excluding inventory revaluation as a separate non-GAAP financial performance measure. The Company will, however, continue to present Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS as non-GAAP measures of performance (consistent with our current definitions). In the future, the Company will continue to separately discuss the impact that raw material purchase price volatility has on our results when significant. This change is being made to better align our use of non-GAAP measures with guidance recently received from the U.S. Securities and Exchange Commission.

US GAAP to Non-GAAP Reconciliation 24 NOTE: Totals may not sum due to rounding. (in $millions, unless noted) Q1’14 Q2’14 Q3’14 Q4’14 Q1’15 Q2’15 Q3’15 Q4’15 Q1’16 Q2’16 Q3’16 2013 2014 2015 Net Income (Loss) 17.1 (44.6) (10.1) (29.7) 37.7 0.8 52.1 43.1 76.7 95.8 67.3 (22.2) (67.3) 133.6 Interest expense, net 32.8 32.6 30.1 29.4 28.9 25.6 19.5 19.3 18.9 18.8 18.8 132.0 124.9 93.2 Provision for (benefit from) income taxes 12.8 5.5 3.7 (2.1) 17.9 7.5 21.2 23.6 21.9 28.6 16.0 21.8 19.7 70.2 Depreciation and amortization 23.7 27.1 27.8 24.9 22.5 21.7 23.0 29.5 23.2 24.9 23.8 95.2 103.7 96.8 EBITDA 86.4 20.6 51.5 22.5 107.0 55.6 115.8 115.5 140.7 168.1 125.9 226.8 181.0 393.8 Loss on extinguishment of long-term debt - - 7.4 - - 95.2 - - - - - 20.7 7.4 95.2 Other items - 32.5 1.9 3.9 1.3 0.6 0.3 - 1.8 0.3 0.3 0.8 38.4 2.2 Restructuring and other charges 0.5 2.1 0.8 6.6 0.5 (0.1) 0.1 0.2 0.7 1.1 16.8 10.8 10.0 0.8 Net (gains) / losses on dispositions of businesses and assets - - - (0.6) - - - - - 12.9 0.3 4.2 (0.6) - Fees paid pursuant to advisory agreement 1.2 24.2 - - - - - - - - - 4.7 25.4 - Asset impairment charges or write-offs - - - - - - - - - - - 9.9 - - Adjusted EBITDA 88.1 79.4 61.6 32.4 108.8 151.3 116.2 115.7 143.2 182.4 143.3 277.9 261.6 492.0 Adjusted EBITDA to Adjusted Net Income Adjusted EBITDA 88.1 79.4 61.6 32.4 108.8 151.3 116.2 115.7 143.2 182.4 143.3 277.9 261.6 492.0 Interest expense, net 32.8 32.6 30.1 29.4 28.9 25.6 19.5 19.3 18.9 18.8 18.8 132.0 124.9 93.2 Provision for (benefit from) income taxes - Adjusted 12.0 10.1 5.4 1.8 18.3 25.5 22.3 18.7 22.4 28.8 21.4 28.4 29.4 84.9 Depreciation and amortization - Adjusted 23.7 25.8 25.6 24.5 22.3 21.6 22.1 23.4 22.6 24.9 23.3 95.2 99.6 89.3 Adjusted Net Income 19.6 10.9 0.5 (23.3) 39.3 78.6 52.3 54.3 79.3 109.9 79.8 22.3 7.7 224.6 Wtd Avg Shares - Diluted (000) 37,270 38,912 50,063 48,770 48,851 48,907 48,989 49,067 49,086 47,857 46,961 37,270 43,476 48,970 Adjusted EPS - Diluted ($) 0.53 0.28 0.01 (0.48) 0.80 1.61 1.07 1.11 1.62 2.30 1.70 0.60 0.18 4.59 Adjustments by Statement of Operations Caption Loss on extinguishment of long-term debt - - 7.4 - - 95.2 - - - - - 20.7 7.4 95.2 Selling, general and administrative expenses 1.7 26.3 2.7 10.5 1.8 0.5 0.4 0.2 2.5 1.4 17.1 25.5 41.3 3.0 Other expense (income), net - 32.5 - (0.6) - - - - - 12.9 0.3 4.9 31.9 - Total EBITDA Adjustments 1.7 58.8 10.1 9.9 1.8 95.7 0.4 0.2 2.5 14.3 17.4 51.1 80.6 98.2 Free Cash Flow Reconciliation Cash provided by operating activities 211.3 117.2 353.2 Capital expenditures (73.5) (98.6) (109.3) Free Cash Flow 137.8 18.6 244.0

Selected Segment Information 25 NOTE: Totals may not sum due to rounding. (in $millions, unless noted) Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 2014 2015 Q3'16 LTM Latex 299 295 309 289 305 312 307 308 299 310 318 1,193 1,233 1,235 Synthetic Rubber 155 142 136 135 162 153 152 134 146 148 150 568 601 579 Performance Plastics 144 147 145 145 150 150 144 146 143 154 145 581 590 588 Performance Materials 598 584 591 569 617 616 603 588 588 613 613 2,342 2,423 2,402 Basic Plastics & Feedstocks 746 743 725 654 793 708 724 690 764 734 711 2,867 2,915 2,898 Trade Volume (MMLbs) 1,344 1,327 1,315 1,223 1,411 1,323 1,327 1,277 1,352 1,347 1,324 5,210 5,339 5,300 Latex 326 321 328 286 238 248 255 226 209 232 243 1,261 966 910 Synthetic Rubber 177 165 155 137 129 115 126 104 102 111 113 634 475 430 Performance Plastics 202 210 208 202 197 185 180 181 169 184 175 821 743 709 Performance Materials 705 695 691 624 565 548 561 510 480 528 531 2,716 2,184 2,049 Basic Plastics & Feedstocks 654 645 614 498 454 480 467 387 414 442 405 2,412 1,788 1,647 Net Sales 1,359 1,341 1,305 1,122 1,018 1,029 1,028 897 894 970 935 5,128 3,972 3,696 Latex 26 27 26 18 21 15 24 18 19 21 30 97 79 88 Synthetic Rubber 43 37 27 30 26 18 27 21 23 30 28 137 93 103 Performance Plastics 17 17 19 16 25 21 15 22 30 31 25 69 83 108 Performance Materials 87 81 72 65 73 55 66 61 72 83 84 304 255 299 Basic Plastics & Feedstocks 23 16 4 (12) 59 122 70 75 97 121 86 31 327 379 Corporate (21) (17) (15) (20) (23) (25) (21) (20) (25) (21) (26) (73) (90) (93) Adjusted EBITDA 88 79 62 32 109 151 116 116 143 182 143 262 492 585 Performance Materials 5 0 (1) (20) (21) 7 (6) (9) (5) 7 4 (16) (29) (4) Basic Plastics & Feedstocks 1 2 (0) (52) (21) 23 (22) (8) (4) 6 3 (49) (29) (4) Inventory Revaluation 6 3 (1) (72) (42) 29 (28) (17) (10) 13 7 (64) (58) (7) Basic Plastics & Feedstocks 15 5 9 18 37 41 33 29 35 39 37 48 140 139 Equity in earnings (losses) of affiliates 15 5 9 18 37 41 33 29 35 39 37 48 140 139

Selected Information – New Segmentation 26 NOTE: Totals may not sum due to rounding. (in $millions, unless noted) Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 2014 2015 Q3'16LTM Latex 299 295 309 289 305 312 307 308 299 310 318 1,193 1,233 1,235 Synthetic Rubber 155 142 136 135 162 153 152 134 146 148 150 568 601 579 Performance Plastics 144 147 145 145 150 150 144 146 143 154 145 581 590 588 Performance Materials 598 584 591 569 617 616 603 588 588 613 613 2,342 2,423 2,402 Basic Plastics 562 584 539 490 585 557 493 525 570 539 504 2,174 2,160 2,137 Feedstocks 185 159 186 164 209 151 231 165 194 195 207 693 755 761 Basic Plastics & Feedstocks 746 743 725 654 793 708 724 690 764 734 711 2,867 2,915 2,898 Trade Volume (MMLbs) 1,344 1,327 1,315 1,223 1,411 1,323 1,327 1,277 1,352 1,347 1,324 5,210 5,339 5,303 Latex 326 321 328 286 238 248 255 226 209 232 243 1,261 966 910 Synthetic Rubber 177 165 155 137 129 115 126 104 102 111 113 634 475 430 Performance Plastics 202 210 208 202 197 185 180 181 169 184 175 821 743 709 Performance Materials 705 695 691 624 565 548 561 510 480 528 531 2,716 2,184 2,049 Basic Plastics 530 543 494 412 375 411 364 327 343 363 324 1,978 1,478 1,357 Feedstocks 124 103 120 86 78 69 103 60 71 79 81 434 310 290 Basic Plastics & Feedstocks 654 645 614 498 454 480 467 387 414 442 405 2,412 1,788 1,647 Net Sales 1,359 1,341 1,305 1,122 1,018 1,029 1,028 897 894 970 935 5,128 3,972 3,696 Latex 26 27 26 18 21 15 24 18 19 21 30 97 79 88 Synthetic Rubber 43 37 27 30 26 18 27 21 23 30 28 137 93 103 Performance Plastics 23 21 23 18 30 28 20 30 35 38 30 85 108 133 Performance Materials 93 84 76 67 77 61 72 69 77 90 88 320 280 325 Basic Plastics 2 8 (5) (19) 14 39 25 37 38 43 34 (15) 116 152 Feedstocks (1) (3) (5) (12) 5 35 7 3 21 33 13 (21) 51 69 Americas Styrenics 16 7 11 17 35 41 32 27 33 38 34 50 135 132 Basic Plastics & Feedstocks 17 12 0 (14) 55 115 65 67 92 113 81 15 302 353 Corporate (21) (17) (15) (20) (23) (25) (21) (20) (25) (21) (26) (73) (90) (93) Adjusted EBITDA 88 79 62 32 109 151 116 116 143 182 143 262 492 585 Performance Materials 5 0 (1) (21) (22) 7 (6) (10) (5) 7 4 (17) (31) (4) Basic Plastics & Feedstocks 1 2 (0) (50) (20) 22 (22) (7) (4) 6 3 (47) (27) (3) Inventory Revaluation 6 3 (1) (72) (42) 29 (28) (17) (10) 13 7 (64) (58) (7) Basic Plastics & Feedstocks 15 5 9 18 37 41 33 29 35 39 37 48 140 139 Equity in earnings (losses) of affiliates 15 5 9 18 37 41 33 29 35 39 37 48 140 139