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 19, 2018

 
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))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company o
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

 
ITEM 2.02                                     Results of Operations and Financial Condition
 
On February 19, 2018, 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, 2017. 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 Tuesday, February 20, 2018 at 10 AM Eastern Time. Ahead of this call the Company is also providing investors with prepared remarks and a copy of the investor presentation materials, which will be discussed on the call and are furnished hereto as Exhibits 99.2 and 99.3, respectively.
 
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 19, 2018	
99.2	 	Management Commentary, dated February 19, 2018	
99.3	 	Investor Presentation	
 
2 

 
EXHIBIT INDEX

Exhibit
Number	 	Description	
99.1	 	Press Release, dated February 19, 2018	
99.2	 	Management Commentary, dated February 19, 2018	
99.3	 	Investor Presentation	
 
3 

 
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 19, 2018	 	 	
 
4 

Exhibit 99.1 

 

Press contacts:	 	 	 	Investor Contact:	
Trinseo	 	Makovsky	 	Trinseo	
Donna St. Germain	 	Doug Hesney	 	David Stasse	
Tel : +1 610-240-3307	 	Tel: +1 212-508-9661	 	Tel : +1 610-240-3207	
Email: stgermain@trinseo.com	 	Email: dhesney@makovsky.com	 	Email: dstasse@trinseo.com	
 
Trinseo Reports Fourth Quarter and Record Full Year 2017 Financial Results; Increases 2018 Full Year Outlook
 
Year Ended 2017 Summary
·                   Net Income of $328 million and diluted EPS of $7.30
·                   Adjusted EPS of $8.13
·                   Adjusted EBITDA of $642 million
·                   Cash provided by operating activities of $391 million and Free Cash Flow of $244 million
 
Fourth Quarter 2017 Summary
·                   Net Income of $118 million and diluted EPS of $2.63
·                   Adjusted EPS of $2.14
·                   Adjusted EBITDA of $169 million
·                   Cash provided by operating activities of $196 million and Free Cash Flow of $158 million

 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	December 31,	 	
$millions, except per share data	 	2017	 	2016	 	2017	 	2016	 	
Net Sales	 	1,102	 	917	 	4,448	 	3,717	 	
Net Income	 	118	 	79	 	328	 	318	 	
EPS(Diluted) ($)	 	2.63	 	1.72	 	7.30	 	6.70	 	
Adjusted Net Income*	 	96	 	77	 	366	 	346	 	
Adjusted EPS ($)*	 	2.14	 	1.68	 	8.13	 	7.28	 	
EBITDA*	 	189	 	142	 	592	 	577	 	
Adjusted EBITDA*	 	169	 	142	 	642	 	611	 	

*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 19, 2018 — Trinseo (NYSE: TSE), a global materials company and manufacturer of plastics, latex binders and synthetic rubber, today reported its fourth quarter and record full year 2017 financial results with net sales of $1,102 million and $4,448 million, respectively; net income of $118 million and $328 million, respectively; and earnings per diluted share of $2.63 and $7.30, respectively. Fourth quarter and full year Adjusted EBITDA was $169 million and $642 million, respectively, and Adjusted EPS was $2.14 and $8.13, respectively.
 
Net sales in the fourth quarter increased 20% versus prior year driven primarily by the pass through of higher raw material costs as well as currency. Fourth quarter net income of $118 million, which included a pre-tax gain of approximately $22 million related to changes made to certain Company pension plans, was $39 million higher than prior year. Fourth quarter Adjusted EBITDA of $169 million was $27 million higher than prior year. The higher operational profitability was due primarily to higher styrene, polystyrene, polycarbonate, and Latex Binders margins as well as higher Performance Plastics sales volume. These impacts were partially offset by lower Synthetic Rubber sales volume.
 
Net sales in the full year increased 20% versus prior year driven primarily by the pass through of higher raw material costs. Full year net income of $328 million was $10 million higher than prior year. This increase was driven by improved performance in the Feedstocks, Basic Plastics, and Latex Binders segments due to higher margin. These improvements were partially offset by lower performance in the Americas Styrenics, Synthetic Rubber, and Performance Plastics segments, in

 
addition to a $65 million pre-tax loss on extinguishment of debt in the current year. Adjusted EBITDA in the full year of $642 million was $31 million higher than prior year which was comprised of about $55 million of fundamental business improvement, partially offset by about $24 million of unfavorable net timing impacts.
 
Commenting on the Company’s performance, Chris Pappas, Trinseo President and Chief Executive Officer, said, “We continue to be encouraged by our performance. Our fourth quarter results were above the guidance we provided during our third quarter call due to strong operating conditions in several segments as well as pricing initiatives that resulted in higher than expected margins. For the second consecutive year we had record net income and Adjusted EBITDA.”
 
Pappas continued, “We also had very strong cash generation during the year, and we continue to return cash to shareholders. During 2017 we repurchased approximately 1.4 million shares, utilizing about $89 million of cash, and we increased the dividend by 20%. In total, we returned nearly $150 million to shareholders via these actions. In addition, we completed our first acquisition, API Plastics, and we continue to make excellent progress on our other growth initiatives, including the SSBR expansion and pilot plant in Synthetic Rubber, and the ABS capacity in China, which are now all in operation.”
 
Fourth Quarter Results and Commentary by Business Segment
 
·                   Latex Binders net sales of $250 million for the quarter increased 4% versus prior year primarily from the pass through of higher raw material costs. Lower sales volume decreased revenue by 11%, excluding the divested Latin America business, driven by lower sales volume in the North America and Europe paper and carpet markets. Adjusted EBITDA of $33 million was $9 million above prior year from higher margin in Asia due to better market conditions, which was partially offset by lower sales volume.
 
·                   Synthetic Rubber net sales of $127 million for the quarter increased 2% versus prior year primarily due to currency as well as the pass through of higher raw material costs. These impacts were partially offset by lower sales volume which was driven by customer destocking, shipment delays, and a softer tire market. Adjusted EBITDA of $15 million was $14 million below prior year from lower sales volume as well as favorable prior year net timing impacts.
 
·                   Performance Plastics net sales of $227 million for the quarter was 37% above prior year including a 9% increase from the acquisition of API Plastics. In addition, net sales increased due to higher sales volume to the North America automotive and Asia consumer electronics and automotive markets as well as the pass through of higher raw material costs. Adjusted EBITDA of $43 million was $11 million above prior year primarily from higher sales volume.
 
·                   Basic Plastics net sales of $395 million for the quarter was 22% above prior year due mainly to the pass through of higher raw material costs, currency, and higher ABS sales volume. Adjusted EBITDA of $44 million was $11 million above prior year due primarily to higher polystyrene and polycarbonate margin in Europe, from more favorable market conditions, as well as higher ABS sales volume.
 
·                   Feedstocks net sales of $103 million for the quarter was 61% above prior year due to higher styrene-related sales volume as well as higher styrene prices. Adjusted EBITDA of $24 million was $10 million above prior year from higher styrene margin in Europe.
 
·                   Americas Styrenics Adjusted EBITDA of $31 million for the quarter was flat versus prior year as higher margin was offset by lower polystyrene sales volume.
 
Fourth Quarter and Full Year Cash Generation
 
Cash provided by operating activities for the fourth quarter was $196 million and capital expenditures were $38 million, resulting in Free Cash Flow for the quarter of $158 million. Fourth quarter cash from operations and Free Cash Flow included a favorable impact of approximately $34 million from lower working capital. Cash provided by operating activities for the full year was $391 million and capital expenditures were $147 million, resulting in Free Cash Flow for the year of $244 million. Full year cash from operations and Free Cash Flow included an unfavorable impact of approximately $127 million from higher working capital primarily from increasing raw material prices as well as additional working capital requirements from growth initiatives such as the acquisition of API Plastics, and the new SSBR and ABS capacity.
 
At the end of the year the Company had $433 million of cash reflecting the expenditures of $82 million for the purchase of API Plastics, net of cash acquired, as well as $128 million related to the successful debt refinancing earlier in the year. For a reconciliation of Free Cash Flow to cash provided by operating activities, see note 3 below.

 
Outlook
 
·                   First quarter 2018 net income of $104 million to $113 million, and earnings per diluted share of $2.34 to $2.52
·                   First quarter 2018 Adjusted EBITDA of $175 million to $185 million and Adjusted EPS of $2.34 to $2.52
 
The Company is updating previously issued guidance as follows:
 
·                   Full year 2018 net income of $369 million to $386 million and earnings per diluted share of $8.26 to $8.63
·                   Full year 2018 Adjusted EBITDA of $640 million to $660 million and Adjusted EPS of $8.26 to $8.63
 
Commenting on the outlook for the first quarter and full year 2018 Pappas said, “We expect strong performance in the first quarter from higher styrene margins, including impacts from planned and unplanned styrene production outages, as well as continued, healthy fundamentals across our segments.”
 
Pappas continued, “Looking ahead to the full year performance, we are increasing our prior 2018 net income and Adjusted EBITDA guidance as we continue to see strong business fundamentals, and as we expect a favorable impact from unplanned styrene outages in the first quarter. In addition, we expect continued strong cash generation for the year. 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 2017, and we remain focused on achieving a very strong 2018 and delivering returns to shareholders.”
 
For a reconciliation of fourth quarter and full year 2017, as well as first quarter and full year 2018, net income to Adjusted EBITDA and Adjusted EPS, see note 2 below. Additionally, refer to the appendix within Exhibit 99.3 of our Form 8-K, dated February 19, 2018, for further details on how net timing impacts are defined and calculated for our segments.
 
Conference Call and Webcast Information
 
Trinseo will host a conference call to discuss its fourth quarter and full year 2017 financial results tomorrow, Tuesday, February 20, 2018 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 Investor Relations. The conference call will be available by phone at:
 
Participant Toll-Free Dial-In Number: +1 (833) 241-7248
Participant International Dial-In Number: +1 (647) 689-4212
Conference ID / passcode: 5197679
 
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 2017 financial results, including management’s commentary, 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 20, 2019.
 
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, appliances, consumer electronics, medical devices, electrical, building and construction, textile, paper and board, footwear and tires. Trinseo had approximately $4.4 billion in net sales in 2017, with 16 manufacturing sites around the world, and approximately 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 excluding certain GAAP items (“non-GAAP measures”), such as Adjusted EBITDA and, Adjusted EPS and measures of liquidity excluding certain GAAP items, such as Free Cash Flow. We believe these measures are useful for investors and management in evaluating business trends and performance each period.  These income measures are also used to manage our business and assess current period profitability, as well as to provide an appropriate basis to evaluate the effectiveness of our pricing strategies. Such measures are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance or liquidity, as applicable. The definitions of each of these measures, further discussion of usefulness, and reconciliations of non-GAAP measures to GAAP measures are provided 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,” “outlook,” “guidance,” “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 millions, except per share data)
(Unaudited)

 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,
2017	 	December 31,
2016	 	December 31,
2017	 	December 31,
2016	 	
Net sales	 	$	1,101.9	 	$	917.5	 	$	4,448.1	 	$	3,716.6	 	
Cost of sales	 	918.0	 	779.6	 	3,794.1	 	3,129.0	 	
Gross profit	 	183.9	 	137.9	 	654.0	 	587.6	 	
Selling, general and administrative expenses	 	57.5	 	60.9	 	239.0	 	241.5	 	
Equity in earnings of unconsolidated affiliates	 	30.6	 	34.4	 	123.7	 	144.7	 	
Operating income	 	157.0	 	111.4	 	538.7	 	490.8	 	
Interest expense, net	 	14.8	 	18.4	 	70.1	 	75.0	 	
Loss on extinguishment of long-term debt	 	—	 	—	 	65.3	 	—	 	
Other expense (income), net	 	(1.9	)	(6.0	)	(7.8	)	10.5	 	
Income before income taxes	 	144.1	 	99.0	 	411.1	 	405.3	 	
Provision for income taxes	 	26.4	 	20.5	 	82.8	 	87.0	 	
Net income	 	$	117.7	 	$	78.5	 	$	328.3	 	$	318.3	 	
Weighted average shares- basic	 	43.7	 	44.6	 	43.8	 	46.5	 	
Net income per share- basic	 	$	2.69	 	$	1.76	 	$	7.49	 	$	6.84	 	
Weighted average shares- diluted	 	44.7	 	45.8	 	45.0	 	47.5	 	
Net income per share- diluted	 	$	2.63	 	$	1.72	 	$	7.30	 	$	6.70	 	
 	 	 	 	 	 	 	 	 	 	
Dividends per share	 	$	0.36	 	$	0.30	 	$	1.38	 	$	0.90	 	

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

 	 	December 31,	 	
 	 	2017	 	2016	 	
Assets	 	 	 	 	 	
Current assets	 	 	 	 	 	
Cash and cash equivalents	 	$	432.8	 	$	465.1	 	
Accounts receivable, net of allowance for doubtful accounts	 	685.5	 	564.4	 	
Inventories	 	510.4	 	385.3	 	
Other current assets	 	17.5	 	18.1	 	
Total current assets	 	1,646.2	 	1,432.9	 	
 	 	 	 	 	 	
Investments in unconsolidated affiliates	 	152.5	 	191.4	 	
Property, plant and equipment, net of accumulated depreciation	 	627.0	 	510.0	 	
Other assets	 	 	 	 	 	
Goodwill	 	72.5	 	38.0	 	
Other intangible assets, net	 	207.5	 	177.3	 	
Deferred income tax assets	 	35.5	 	43.8	 	
Deferred charges and other assets	 	30.8	 	27.9	 	
Total other assets	 	346.3	 	287.0	 	
Total assets	 	$	2,772.0	 	$	2,421.3	 	
 	 	 	 	 	 	
Liabilities and shareholders’ equity	 	 	 	 	 	
Current liabilities	 	 	 	 	 	
Short-term borrowings and current portion of long-term debt	 	$	7.0	 	$	5.0	 	
Accounts payable	 	436.8	 	378.0	 	
Income taxes payable	 	35.9	 	23.8	 	
Accrued expenses and other current liabilities	 	146.9	 	135.4	 	
Total current liabilities	 	626.6	 	542.2	 	
Noncurrent liabilities	 	 	 	 	 	
Long-term debt, net of unamortized deferred financing fees	 	1,165.0	 	1,160.4	 	
Deferred income tax liabilities	 	49.2	 	24.8	 	
Other noncurrent obligations	 	256.4	 	246.2	 	
Total noncurrent liabilities	 	1,470.6	 	1,431.4	 	
 	 	 	 	 	 	
Commitments and contingencies	 	 	 	 	 	
Shareholders’ equity	 	 	 	 	 	
Ordinary shares, $0.01 nominal value, 50,000.0 shares authorized (December 31, 2017: 48.8 shares issued and 43.4 shares outstanding ; December 31, 2016: 48.8 shares issued and 44.3 shares outstanding)	 	0.5	 	0.5	 	
Additional paid-in-capital	 	578.8	 	573.7	 	
Treasury shares, at cost (December 31, 2017: 5.4 shares; December 31, 2016: 4.5 shares)	 	(286.8	)	(217.5	)	
Retained Earnings	 	527.9	 	261.2	 	
Accumulated other comprehensive loss	 	(145.6	)	(170.2	)	
Total shareholders’ equity	 	674.8	 	447.7	 	
Total liabilities and shareholders’ equity	 	$	2,772.0	 	$	2,421.3	 	

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

 	 	Year Ended
December 31,	 	
 	 	2017	 	2016	 	
Cash flows from operating activities	 	 	 	 	 	
Cash provided by operating activities	 	$	391.3	 	$	403.7	 	
 	 	 	 	 	 	
Cash flows from investing activities	 	 	 	 	 	
Capital expenditures	 	(147.4	)	(123.9	)	
Cash paid to acquire a business, net of cash acquired	 	(82.3	)	—	 	
Proceeds from the sale of businesses and other assets	 	46.2	 	2.0	 	
Distributions from unconsolidated affiliates	 	0.9	 	4.8	 	
Other investing cash outflows	 	—	 	(0.2	)	
Cash used in investing activities	 	(182.6	)	(117.3	)	
 	 	 	 	 	 	
Cash flows from financing activities	 	 	 	 	 	
Deferred financing fees	 	(21.5	)	—	 	
Short-term borrowings, net	 	(0.3	)	(0.3	)	
Purchase of treasury shares	 	(88.9	)	(215.1	)	
Dividends paid	 	(58.0	)	(27.3	)	
Proceeds from exercise of option awards	 	9.3	 	0.2	 	
Withholding taxes paid on restricted share units	 	(0.3	)	(0.1	)	
Net proceeds from issuance of 2024 Term Loan B	 	700.0	 	—	 	
Repayments of 2024 Term Loan B	 	(1.8	)	—	 	
Repayments of 2021 Term Loan B	 	(492.5	)	(5.0	)	
Net proceeds from issuance of 2025 Senior Notes	 	500.0	 	—	 	
Repayments of 2022 Senior Notes	 	(746.0	)	—	 	
Prepayment penalty on long-term debt	 	(53.0	)	—	 	
Cash used in financing activities	 	(253.0	)	(247.6	)	
Effect of exchange rates on cash	 	12.0	 	(5.0	)	
Net change in cash and cash equivalents	 	(32.3	)	33.8	 	
Cash and cash equivalents—beginning of period	 	465.1	 	431.3	 	
Cash and cash equivalents—end of period	 	$	432.8	 	$	465.1	 	

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

 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	December 31,	 	December 31,	 	December 31,	 	
(In millions) 	 	2017	 	2016	 	2017	 	2016	 	
Latex Binders	 	$	250.3	 	$	240.8	 	$	1,097.1	 	$	925.3	 	
Synthetic Rubber	 	126.8	 	124.4	 	582.8	 	450.7	 	
Performance Plastics	 	226.5	 	165.6	 	808.3	 	693.4	 	
Basic Plastics	 	395.5	 	323.0	 	1,552.2	 	1,352.7	 	
Feedstocks	 	102.8	 	63.7	 	407.7	 	294.5	 	
Americas Styrenics*	 	—	 	—	 	—	 	—	 	
Total Net Sales	 	$	1,101.9	 	$	917.5	 	$	4,448.1	 	$	3,716.6	 	

* 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; acquisition related costs and other items. In doing so, we are providing management, investors, and credit rating agencies with an indicator of our ongoing performance and business trends, removing the impact of transactions and events that we would not consider a part of our core operations.
 
Lastly, we present Adjusted Net Income and Adjusted EPS as additional performance measures. Adjusted Net Income is calculated as Adjusted EBITDA (defined beginning with net income, above), less interest expense, less the provision for income taxes and depreciation and amortization, tax affected for various discrete items, as appropriate. Adjusted EPS is calculated as Adjusted Net Income per weighted average diluted shares outstanding for a given period. We believe that Adjusted Net Income and Adjusted EPS provide transparent and useful information to management, investors, analysts and other stakeholders in evaluating and assessing our operating results from period-to-period after removing the impact of certain transactions and activities that affect comparability and that are not considered part of our core operations.
 
There are limitations to using the financial performance measures noted above. These performance measures are not intended to represent net income or other measures of financial performance. As such, they should not be used as alternatives to net income as indicators of operating performance. Other companies in our industry may define these performance measures differently than we do. As a result, it may be difficult to use these or similarly-named financial measures that other companies may use, to compare the performance of those companies to our performance. We compensate for these limitations by providing reconciliations of these performance measures to our net income, which is determined in accordance with GAAP.

 

 	 	Three Months Ended	 	Year Ended	 	 	 	
(In millions, except per share data)	 	December 31,
2017	 	December 31,
2016	 	December 31,
2017	 	December 31,
2016	 	 	 	
Net income	 	$	117.7	 	$	78.5	 	$	328.3	 	$	318.3	 	 	 	
Interest expense, net	 	14.8	 	18.4	 	70.1	 	75.0	 	 	 	
Provision for income taxes	 	26.4	 	20.5	 	82.8	 	87.0	 	 	 	
Depreciation and amortization	 	30.3	 	24.7	 	110.6	 	96.4	 	 	 	
EBITDA	 	$	189.2	 	$	142.1	 	$	591.8	 	$	576.7	 	 	 	
Loss on extinguishment of long-term debt	 	—	 	—	 	65.3	 	—	 	Loss on extinguishment of long-term debt	 	
Net loss (gain) on disposition of businesses and assets (a)	 	—	 	1.8	 	(9.7	)	15.1	 	Other expense (income), net	 	
Restructuring and other charges (b)	 	1.2	 	4.9	 	6.0	 	23.5	 	Selling, general, and administrative expenses	 	
Acquisition transaction and integration costs (c)	 	(0.1	)	—	 	4.7	 	—	 	Cost of sales; Selling, general and administrative expenses	 	
Asset impairment charges or write-offs (d)	 	—	 	—	 	4.3	 	—	 	Cost of sales; Selling, general and administrative expenses	 	
Other items (e)	 	(21.6	)	(6.8	)	(19.9	)	(4.4	)	Cost of sales; Selling, general and administrative expenses; Other expense (income), net	 	
Adjusted EBITDA	 	$	168.7	 	$	142.0	 	$	642.5	 	$	610.9	 	 	 	
Adjusted EBITDA to Adjusted Net Income:	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA	 	$	168.7	 	$	142.0	 	$	642.5	 	$	610.9	 	 	 	
Interest expense, net	 	14.8	 	18.4	 	70.1	 	75.0	 	 	 	
Provision for income taxes — Adjusted (f)	 	28.4	 	22.0	 	98.2	 	94.6	 	 	 	
Depreciation and amortization — Adjusted (g)	 	30.0	 	24.7	 	108.6	 	95.4	 	 	 	
Adjusted Net Income	 	$	95.5	 	$	76.9	 	$	365.6	 	$	345.9	 	 	 	
Adjusted EPS	 	$	2.14	 	$	1.68	 	$	8.13	 	$	7.28	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA by Segment:	 	 	 	 	 	 	 	 	 	 	 	
Latex Binders	 	$	33.3	 	$	24.3	 	$	138.5	 	$	94.3	 	 	 	
Synthetic Rubber	 	15.0	 	29.1	 	83.3	 	110.9	 	 	 	
Performance Plastics	 	42.6	 	32.5	 	122.4	 	136.2	 	 	 	
Basic Plastics	 	43.9	 	33.1	 	156.7	 	148.2	 	 	 	
Feedstocks	 	24.2	 	14.2	 	110.5	 	80.2	 	 	 	
Americas Styrenics	 	30.6	 	30.9	 	122.9	 	135.8	 	 	 	
Corporate unallocated	 	(20.9	)	(22.1	)	(91.8	)	(94.7	)	 	 	
Adjusted EBITDA	 	$	168.7	 	$	142.0	 	$	642.5	 	$	610.9	 	 	 	

(a)                   Net gain on disposition of businesses and assets during the year ended December 31, 2017 relates primarily to the sale of our 50% share in Sumika Styron Polycarbonate to Sumitomo Chemical Company Limited. Net loss on disposition of businesses and assets during the year ended December 31, 2016 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 2017 periods presented above primarily relate to employee termination benefit and decommissioning charges incurred in connection with the decision to cease manufacturing activities at our latex binders manufacturing facility in Livorno, Italy, as well as employee termination benefit charges related to the upgrade and replacement of the Company’s compounding facility in Terneuzen, The Netherlands. Restructuring and other charges for the 2016 periods presented above primarily relate to approximately $20.0 million in charges incurred during the year ended December 31, 2016 in connection with the Livorno, Italy action discussed above, 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.
 
Note that the accelerated depreciation charges incurred as part of both the upgrade and replacement of the Company’s compounding facility in Terneuzen, The Netherlands as well as the closure of our Allyn’s Point facility are included within the “Depreciation and amortization” caption above, and therefore are not included as a separate adjustment within this caption.
 
(c)                    Acquisition transaction and integration costs for the 2017 periods presented above relate to advisory and professional fees incurred in conjunction with the Company’s acquisition of API Plastics, which closed in July 2017. These costs also include a non-cash fair value inventory adjustment recorded in conjunction with this acquisition.
 
(d)                   Asset impairment charges or write-offs for the year ended December 31, 2017 relate to the impairment of certain long-lived assets within the Company’s Performance Plastics segment.
 
(e)                    Other items for the 2017 periods presented above primarily relate to a curtailment gain recorded as a result of changes to certain of the  Company’s pension plans in Europe, offset by fees incurred in conjunction with the Company’s debt refinancing which was completed during the third quarter of 2017. 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.
 
(f)                     Adjusted to remove the tax impact of loss on extinguishment of long term debt and the items noted in (a), (b), (c), (d), (e) and (g). 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.
 
The three months and year ended December 31, 2017 exclude net benefits of $9.7 million and $0.8 million related to adjustments in reserves for uncertain tax positions and provision to return adjustments, respectively, partially offset by the exclusion of net detriments of $3.0 million related to jurisdictional tax rate changes, including the impact of U.S. tax reform. 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.
 
(g)                    For the full year ended December 31, 2017, the amount excludes accelerated depreciation of $2.0 million related to the upgrade and replacement of the Company’s compounding facility in Terneuzen, The Netherlands. 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 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, 2018, as well as for the full year ended December 31, 2018.  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,
2018	 	December 31,
2018	 	
Adjusted EBITDA	 	$	175 – 185	 	$	640 – 660	 	
Interest expense, net	 	(15)	 	(60)	 	
Provision for income taxes	 	(25) – (26)	 	(87) – (90)	 	
Depreciation and amortization	 	(31)	 	(124)	 	
Reconciling items to Adjusted EBITDA (h)	 	—	 	—	 	
Net Income	 	104 – 113	 	369 – 386	 	
Reconciling items to Adjusted Net Income (h)	 	—	 	—	 	
Adjusted Net Income	 	104 – 113	 	369 – 386	 	
 	 	 	 	 	 	
Weighted average shares- diluted (i)	 	44.7	 	44.7	 	
Adjusted EPS	 	$	2.34 – 2.52	 	8.26 – 8.63	 	

(h)                   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, 2018 and full year ended December 31, 2018, we have not included estimates for these items.
 
(i)                       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 indicator of the Company’s ongoing ability to generate cash through core operations, as it excludes the cash impacts of various financing transactions as well as cash flows from business combinations that are not considered organic in nature. We also believe that Free Cash Flow provides management and investors with a useful analytical indicator of our ability to service our indebtedness, pay dividends (when declared), and meet our ongoing cash obligations.
 
Free Cash Flow is not intended to represent cash flows from operations as defined by GAAP, and therefore, should not be used as an alternative for that measure. Other companies in our industry may define Free Cash Flow differently than we do. As a result, it may be difficult to use this or similarly-named financial measures that other companies may use, to compare the liquidity and cash generation of those companies to our own. The Company compensates for these limitations by providing the reconciliation below, which is determined in accordance with GAAP.
 
Free Cash Flow

 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	December 31,	 	December 31,	 	December 31,	 	
(in millions)	 	2017	 	2016	 	2017	 	2016	 	
Cash provided by operating activities	 	$	196.5	 	$	79.0	 	$	391.3	 	$	403.7	 	
Capital expenditures	 	(38.5	)	(41.2	)	(147.4	)	(123.9	)	
Free Cash Flow	 	$	158.0	 	$	37.8	 	$	243.9	 	$	279.8	 	

Exhibit 99.2 

 
Fourth Quarter and Full Year 2017 Earnings Management Commentary
 
February 19, 2018
 
We are pleased to announce that Trinseo finished 2017 with very strong fourth quarter results that contributed to a second consecutive year of record net income, earnings per share, and Adjusted EBITDA.  Fourth quarter net income was $118 million, which included a $22 million one-time pre-tax gain related to changes made to certain Company pension plans, and Adjusted EBITDA was $169 million. These results exceeded guidance from the Q3 2017 earnings call due to the one-time gain mentioned above, as well as about $35 million in operational improvements, including about $15 million in favorable net timing.
 
Full year net income was $328 million, and Adjusted EBITDA was $642 million, which included $9 million of unfavorable timing impacts.  Full year cash from operations was $391 million and Free Cash Flow was $244 million.
 
Highlights
 
·                   In addition to record consolidated results, Trinseo also had full year record Adjusted EBITDA in the Latex Binders, Basic Plastics, and Feedstocks segments.
 
·                   We made significant progress toward achieving our goal of increasing Adjusted EBITDA across our Latex Binders, Synthetic Rubber, and Performance Plastics segments by $100 million from 2016 to 2019.
 
·                   In Synthetic Rubber, we completed the SSBR expansion, adding 50 kilotons of SSBR capacity, increasing the Company’s global production by 33%. Also, we opened a pilot plant that will allow for more efficient use of our production facilities and speed up innovation for this critical technology, which is a key component in increasing energy efficiency, safety and durability in performance tires.
 
·                   In Latex Binders, we continued the transformation of the business by growing our market presence in specialty segments and in Asia, and through cost actions.  Over the last five years, we’ve increased volume serving non-graphical paper markets from 54% to 64%.
 
·                   In Performance Plastics, we opened new ABS capacity in China, meeting customer needs for MAGNUM™ ABS in the automotive, appliance, electronics, lighting and consumer goods markets. The additional capacity came online during the year, we made our first commercial sales, and we are on our way to selling out the capacity.
 
·                   We completed the acquisition of API Plastics, a sophisticated polymer solutions provider with a strong position in soft-touch polymers, which complement Trinseo’s existing strengths in rigid polymers.
 
·                   We opened a new Plastics Research Center, which modernized two existing technical support center and research lab operations under one roof in Terneuzen, The Netherlands. The facility will enable cross-functional projects and innovations for customer customizations, which is key to Trinseo’s future growth.
 
·                   2017 marked another exceptional year in environmental, health, and safety performance by Trinseo employees across the globe. We continue to be a top-decile performer in safety among chemical companies. Twenty-one of our thirty eligible global sites achieved triple-zero status, with zero injuries, spills, or safety incidents.
 
Segment Results
 
In Latex Binders, we continued to see stronger results driven by our diversified chemistries and cost actions, as well as improved market conditions in Asia. Fourth quarter Adjusted EBITDA was $33 million, which included $4 million of positive net timing impacts. Latex Binders Adjusted EBITDA for 2017 was a record $139 million, which included $8 million of unfavorable net timing impacts. In addition, full year results included an approximate $25 million raw material tailwind.
 
Synthetic Rubber’s fourth quarter Adjusted EBITDA of $15 million was negatively impacted by customer destocking, shipping delays, and a softer than anticipated tire market. While we saw strong order patterns in October, these slowed during the latter part of the quarter. However, we’ve seen stronger sales volume to start 2018 and we expect strong first quarter demand. Full year sales volume was a record, and Adjusted EBITDA of $83 million included unfavorable impacts of approximately $13 million of net timing and about $10 million related to the SSBR capacity expansion.

 
Performance Plastics ended the year with a record quarter of $43 million of Adjusted EBITDA, driven by strong volumes in automotive and consumer electronics. Full year Adjusted EBITDA was $122 million, which included an unfavorable net timing impact of $10 million, and we had record full year sales volume. Margins declined in the first half of the year due to a sharp increase in raw material costs, but rebounded in the second half of the year as raw material volatility subsided and as we implemented pricing initiatives. In addition, we are seeing strong sales volumes across most of our markets, and we look forward to a full year of API Plastics contribution and fully integrating these products into our portfolio offerings.
 
Basic Plastics performed better than forecast in the fourth quarter due mainly to higher margins in polycarbonate and polystyrene. Adjusted EBITDA was a record $44 million inclusive of a $5 million favorable net timing impact. Full year Adjusted EBITDA of $157 million included a favorable net timing impact of $11 million. We continue to see favorable market dynamics across our polystyrene, polycarbonate, and ABS product lines, and year-over-year profitability increased despite an $8 million reduction in Adjusted EBITDA due to the sale of the Sumika Styron Polycarbonate joint venture.
 
Feedstocks fourth quarter Adjusted EBITDA was $24 million including a favorable $7 million net timing impact. Styrene margin over raw materials in the fourth quarter was slightly lower than expected, but we were able to more than offset that with favorable production and other operating efficiencies. We estimate that the record full year Adjusted EBITDA of $111 million included about a $30 million benefit from unplanned styrene outages, primarily in the third quarter.
 
Americas Styrenics Adjusted EBITDA of $31 million in the fourth quarter was below expectations due to lower sales volume from delayed shipments at year end. Full year Adjusted EBITDA was $123 million, inclusive of an approximately $15 million negative impact from the extended outage in the first quarter.
 
Cash provided by operating activities for the fourth quarter was $196 million and capital expenditures were $38 million, resulting in Free Cash Flow for the quarter of $158 million. Fourth quarter cash from operations and Free Cash Flow included a favorable impact of approximately $34 million from lower working capital.
 
During the year we used $89 million to repurchase approximately 1.4 million shares. At the end of the year the Company had $433 million of cash.
 
The fourth quarter GAAP effective tax rate of 18% was below expectations due to the impact of an $8.4 million reversal of a tax reserve for uncertain tax expense.
 
New Segmentation
 
Starting in the first quarter of 2018 we will be introducing a change to our segment reporting. We will continue to report operating results for six segments. Four of them will be unchanged:  Latex Binders, Synthetic Rubber, Feedstocks, and Americas Styrenics. Polystyrene will now be reported as a standalone segment. The Performance Plastics segment will remain. This segment previously consisted of compounds, blends, and ABS to the automotive market. Going forward, Performance Plastics will also include the other portion of our ABS business, as well as SAN and Polycarbonate. This will concentrate our more specialized plastics into one business unit under the leadership of one business director. It also reduces business complexity as Polycarbonate and ABS are the primary inputs to our compounds and blends.
 
This new structure increases the focus of our efforts across our high-value growth segments — Latex Binders, Synthetic Rubber, and Performance Plastics — which now represent approximately two-thirds of our profitability. A summary of historical results for the new segmentation is available in the appendix of the slide presentation.
 
Key Items for 2018
 
Starting in April, we are reducing our cost-based styrene monomer purchases in Asia, where we have historically purchased approximately 300 kilotons of styrene per year on cost-based economics. We expect this purchase amount will be approximately 185 kilotons in 2018. This reduction is to better align our styrene purchases with our consumption needs. Based on our current expectations of styrene margins in Asia for 2018, this volume reduction is expected to lower the Feedstocks segment Adjusted EBITDA by approximately $5 million.
 
We typically employ a hedging strategy to reduce our exposure to movements in the Euro. For 2018, we have hedged approximately 60% of this exposure at a rate of approximately $1.15 per Euro.  Inclusive of this hedge, a 1% change in the Euro will impact our annual profitability by approximately $2 million on a pre-tax basis.

 
We expect our effective tax rate for 2018 will be approximately 19%, slightly lower than 2017, due to recent US tax reform.
 
Current expectations for 2018 cash items are as follows: capital expenditures of $150 million; cash paid for income taxes of $85 million; cash paid for interest of $50 million. We expect a small working capital investment related to growth projects, however, working capital movements are typically most dependent upon raw material price changes. In addition, we expect to utilize about $100 million for share repurchases during the year.
 
Guidance
 
Looking at the first quarter for European styrene monomer margin over raw materials, January increased from December due to relatively low inventory levels combined with the expected first quarter planned outages. In January, approximately 20% of North America capacity went down unexpectedly, pushing styrene prices and margins to a very high level, with February margin over raw materials settling more than $200 per metric ton higher than January, and we expect a relatively high margin level in March as well. Overall we expect first quarter margins to be, on average, about $175 per ton higher than they were in the fourth quarter. However, during the first quarter we lost some production volume at our styrene plant in Germany due to an outage at an upstream supplier, which we estimate will have a negative impact of about $5 million for the quarter.
 
Moving to our first quarter and full year 2018 outlook, in total for Trinseo, we expect first quarter net income of $104 million to $113 million and Adjusted EBITDA of $175 million to $185 million. This outlook assumes minimal impact from net timing.
 
For full year 2018, we are updating guidance for net income to $369 million to $386 million, and for Adjusted EBITDA to $640 million to $660 million. This outlook assumes minimal impact from net timing and no impact from unplanned outages beyond what we currently have visibility into for the first quarter. Finally, the outlook also includes approximately $35 million of our targeted $100 million of growth initiatives in Latex Binders, Synthetic Rubber, and Performance Plastics.
 
Use of non-GAAP measures
 
In addition to using standard measures of performance and liquidity that are recognized in accordance with accounting principles generally accepted in the United States of America (“GAAP”), we use additional measures of income excluding certain GAAP items (“non-GAAP measures”), such as Adjusted EBITDA and, Adjusted EPS and measures of liquidity excluding certain GAAP items, such as Free Cash Flow. We believe these measures are useful for investors and management in evaluating business trends and performance each period.  These income measures are also used to manage our business and assess current period profitability, as well as to provide an appropriate basis to evaluate the effectiveness of our pricing strategies. Such measures are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance or liquidity, as applicable. The definitions of each of these measures, further discussion of usefulness, and reconciliations of non-GAAP measures to GAAP measures are provided in the Form 8-K filing for this commentary in Exhibit 99.1-Press Release, dated February 19, 2018.
 
Note on Repurchase Program
 
Under the program, 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 commentary 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,” “outlook,” “guidance,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements in this commentary 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 commentary. 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 commentary. 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.

Exhibit 99.3 
Fourth Quarter and Full Year 2017 Financial Results February 19, 2018 ™ 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, Adjusted EPS, and Free Cash Flow. We believe these measures provide relevant and meaningful information to investors and lenders about the ongoing operating results of the Company. Such measures when referenced herein should not be viewed as an alternative to GAAP measures of performance or liquidity, as applicable. We have provided a reconciliation of these measures to the most comparable GAAP metric in the Appendix section of this presentation. Introductions Chris Pappas, President & CEO Barry Niziolek, Executive Vice President & CFO David Stasse, Vice President, Treasury & Investor Relations

3 Key Points * See Appendix for reconciliation of non-GAAP measures. Q4 and Full Year 2017 Results Exceeded Guidance Q4 net income higher by $45MM including one-time gain of $22MM (pre-tax) from certain pension plan changes Q4 included higher than expected margins in Basic Plastics, Performance Plastics, and Latex Binders, partially offset by lower than expected Synthetic Rubber volumes Full year record net income, EPS, Adj EBITDA*, and Adj EPS* Continued Progress on Initiatives to meet Growth Targets On track for $100MM EBITDA growth from 2016 to 2019 Latex Binders improvement – record Adj EBITDA in 2017 Synthetic Rubber SSBR expansion and pilot plant onstream – ongoing product qualifications ABS plant in China onstream; ramping up sales Q1 2018 Outlook Net income of $104MM to $113MM, Diluted EPS of $2.34 to $2.52 Adj EBITDA* of $175MM to $185MM, Adj EPS* of $2.34 to $2.52 Includes estimated impact from known planned and unplanned styrene outages New Segmentation New Performance Plastics combines Compounds & Blends with ABS, Polycarbonate, and SAN – similar high value products, technologies, and markets Polystyrene becomes a standalone segment Improves internal alignment of businesses to capitalize on external opportunities Full Year 2018 Outlook Net income of $369MM to $386MM, Diluted EPS of $8.26 to $8.63 Adj EBITDA* of $640MM to $660MM, Adj EPS* of $8.26 to $8.63 Outlook excludes additional unplanned styrene outages

4 Note: Segment Adjusted EBITDA excludes Corporate Adjusted EBITDA of ($92) million. Totals may not sum due to rounding. * See Appendix for reconciliation of non-GAAP measures. ** Net Sales represents sales to external customers only; however, the majority of the Feedstocks segment Adj EBITDA is driven by margin on internal transfers 2017 Financial Results & Highlights Latex Binders continued mix shift to higher valued markets and Asia margin improvement drive record segment Adj EBITDA in 2017 Synthetic Rubber qualifying new SSBR capacity; other growth initiatives are on track with record sales volume for the year Record full year sales volume in Performance Plastics and stronger second half 2017 Adj EBITDA with price initiatives and reduced raw material volatility Continued favorable supply / demand dynamics across Basic Plastics Approximately $30 million of EBITDA from unplanned styrene outages in the Feedstocks segment during the year Americas Styrenics was negatively impacted by $15MM from the first quarter extended outage; business fundamentals remain strong Performance Materials Latex Binders Net Sales: $1,097MM Adj EBITDA: $139MM Synthetic Rubber Net Sales: $583MM Adj EBITDA: $83MM Performance Plastics Net Sales: $808MM Adj EBITDA: $122MM Basic Plastics & Feedstocks Basic Plastics Net Sales: $1,552MM Adj EBITDA: $157MM Feedstocks Net Sales**: $408MM Adj EBITDA: $111MM Americas Styrenics Adj EBITDA: $123MM Net Income: $328MM Adj EBITDA*: $642MM EPS / Adj EPS*: $7.30 / $8.13

Strong performance in the quarter with solid fundamentals Net income and Adjusted EBITDA* include a favorable net timing impact of about $15 million on a pre-tax basis Strong cash generation and $24 million of share repurchases during the quarter Trinseo Q4 2017 Financial Results 5 * See Appendix for reconciliation of non-GAAP measures. $2.63 $2.14 $1.72 $1.68 Diluted EPS Adj EPS* EPS ($) Q4'17 Q4'16 $1,102 $118 $917 $79 Net Sales Net Income Sales & Net Income ($MM) Q4'17 Q4'16 $169 $142 Q4'17 Q4'16 Adjusted EBITDA* ($MM)

Lower volume versus prior year due to market declines in Europe and North America carpet and coated paper Record full year Adjusted EBITDA from diversified chemistries and geographies, stronger Asia margins, cost actions, and raw material tailwinds Latex Binders 6 $250 $241 Q4'17 Q4'16 Net Sales ($ MM) $33 $24 Q4'17 Q4'16 Adjusted EBITDA ($MM) 276 309 Q4'17 Q4'16 Volume (MM Lbs)

Latex Binders Business Progression 7 2012 2017 Portfolio Shift Geographic Shift Chemistry Shift NOTE: 2012 and 2017 data is based on sales volume; 2012 excludes divested Latin America business Adjusted EBITDA Growth Drivers Offsetting secular market declines in North American and European graphical paper Paper volumes replaced with growth in specialty segments Volume growth in Asian graphical paper, board and textile markets Margin expansion in Asia Tight market conditions lead to higher operating rates Growing higher margin specialty chemistries Acrylic based latexes for board and adhesives & construction Starch containing emulsions Rationalized paper assets leading to very high operating rates across the network Adjusted EBITDA increase from $79 million in 2015 to an estimated $120 million in 2018 (15% CAGR) Other Markets 54% Graphical Paper 46% Other Markets 64% Graphical Paper 36% Rest of World 76% Asia 24% Rest of World 70% Asia 30% SB Latex 91% Non - SB Latex 9% SB Latex 83% Non - SB Latex 17%

Lower Adjusted EBITDA versus prior year due to lower volume (customer destocking, shipping delays, softer tire market) and prior year favorable net timing impact Expect rebound in Q1 sales volume Synthetic Rubber 8 $127 $124 Q4'17 Q4'16 Net Sales ($ MM) $15 $29 Q4'17 Q4'16 Adjusted EBITDA ($MM) 144 159 Q4'17 Q4'16 Volume (MM Lbs)

Synthetic Rubber Business Progression 9 2012 2017 Volume Growth Mix Improvement SSBR Volume Adjusted EBITDA Growth Drivers Focused on performance tire segment Growing 2 – 3x the rate of the overall tire market Favorable macro trends such as tire labelling, lower auto emissions standards Adding SSBR capacity 50kt capacity expansion completed in Q4; qualifying at customers now Pilot plant completed in Q4 Improving mix Highly specialized enhanced SSBR is an increasing percentage of SSBR portfolio Superior rolling resistance, wet grip, noise level Adjusted EBITDA increase from $93 million in 2015 to an estimated $110 million in 2018 (6% CAGR) 617mm lbs. 477mm lbs. NOTE: 2012 and 2017 data is based on sales volume Non - SSBR 70% SSBR 30% Non - SSBR 52% SSBR 48% Base SSBR 62% Enhanced SSBR 38% Base SSBR 50% Enhanced SSBR 50%

Net sales increase vs prior year driven by higher volumes in North America automotive and Asia consumer electronics and automotive, as well as raw material pass through Adjusted EBITDA increase due primarily to higher sales volume Performance Plastics 10 $227 $166 Q4'17 Q4'16 Net Sales ($ MM) $43 $32 Q4'17 Q4'16 Adjusted EBITDA ($MM) 163 137 Q4'17 Q4'16 Volume (MM Lbs)

Net sales increase vs prior year due to higher ABS sales volume as well as the pass through of higher raw material costs Adjusted EBITDA higher than prior year due primarily to higher polystyrene and polycarbonate margin as well as higher ABS sales volume Basic Plastics 11 $395 $323 Q4'17 Q4'16 Net Sales ($ MM) $44 $33 Q4'17 Q4'16 Adjusted EBITDA ($MM) 518 506 Q4'17 Q4'16 Volume (MM Lbs)

Higher YoY due primarily to higher styrene margin in Europe Feedstocks & Americas Styrenics 12 FEEDSTOCKS Continued solid performance Dividends $40 million in Q4 $120 million in 2017 AMERICAS STYRENICS $24 $14 Q4'17 Q4'16 Adjusted EBITDA ($MM) $31 $31 Q4'17 Q4'16 Adjusted EBITDA ($MM)

13 Synthetic Rubber Latex Binders Performance Plastics New Reporting Segments Starting in Q1 Feedstocks Basic Plastics Americas Styrenics Old Segmentation New Segmentation Synthetic Rubber Latex Binders Performance Plastics Feedstocks Polystyrene Americas Styrenics Polycarbonate Copolymers (ABS, SAN) Polystyrene Compounds & Blends Performance Plastics adding Polycarbonate and Copolymers to the existing Compounds & Blends and Automotive ABS Combining related, more differentiated, higher margin materials Internally aligning to better capitalize on external opportunities No divisions Corporate unallocated remains Automotive ABS

Styrene Anti-Dumping Duties China imposed duties on styrene imports as of Feb 13 7.8% - 8.4% on imports from S. Korea 5.0% on imports from Taiwan 9.2% - 10.7% on imports from the US (9.6% applicable to Americas Styrenics) Likely to result in rebalancing of global trade flows China imports ~3,000kt per year, about 30% of its annual demand Chinese non-integrated plants at high end of styrene cost curve Several hundred dollars per ton above North American sourced styrene 14 North America Europe Asia Pacific 300kt 1,100kt 600kt 100kt 200kt From U.S. South America Middle East India 600kt 2017 Styrene Global Trade Flows North America incl. AmSty Rest of World incl. Trinseo (white) China (grey) Middle East Current Styrene Production Cost No material impact to Trinseo expected in 2018 600kt To Asia Source: Trinseo 0 10,000 20,000 30,000 Unit Cost Global Capacity (kT)

Western Europe and Asia Styrene Margin Trends 15 Western Europe Margin (1) Asia Margin (2) Q4 to Q1 ~+$175/MT Trinseo’s Feedstocks reporting segment captures styrene monomer margin through both internally produced and cost-based purchases of styrene. In 2018, we estimate that we will produce approximately 700 kilotons of styrene in Western Europe and purchase approximately 185 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 $9 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, production outages, currency, 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 Q4 to Q1 ~+$50/MT $228 $270 $240 $152 $137 $241 $294 $237 $322 $189 $206 $202 $225 $264 $274 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Styrene Margin - USD/MT Prices – USD/MT $323 $501 $678 $482 $233 $319 $413 $428 $639 $476 $292 $306 $380 $601 $620 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Styrene Margin - USD/MT Prices – USD/MT

Strong polycarbonate margins Growth driven by ABS capacity, API Plastics Q1 and Full Year 2018 Outlook 16 2017 raw material benefit of ~$25 million not expected to repeat Q1 return to normalized volumes YoY growth driven by SSBR capacity expansion and new products Corporate Q1 Adj EBITDA* (1) Segment changes; see Appendix for historical financials on this basis * See Appendix for reconciliation of non-GAAP measures Q1 margin more normalized after strong Q4 Performance roughly flat YoY Q1 outlook assumes ~$15 million favorable impact from unplanned industry outages Overall tighter operating rates expected YoY resulting in some fundamental improvement Higher YoY performance due to prior year unfavorable extended outage impact of about $15 million Effective tax rate of ~19% Cash Paid for Interest of ~$50 million, Cash Paid for Income Taxes of ~$85 million, CapEx of ~$150 million FY Adj EBITDA* ~$120 ~$110 ~$240 ~$45 ~$95 ~$135 ~($95) Assumptions ~$65 ~$12 ~$35 ~$37 ~($23) ~$25 ~$30 ($MM) Net Income Adjusted EBITDA* EPS / Adj EPS* $8.26 - $8.63 $2.34 - $2.52 $175 - $185 $640 - $660 $104 - $113 $369 - $386 Latex Binders Synthetic Rubber Performance Plastics(1) Polystyrene(1) Feedstocks Americas Styrenics Assumes minimal net timing impact

Appendix

US GAAP to Non-GAAP Reconciliation 18 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 19, 2018. Totals may not sum due to rounding. Profitability Outlook

US GAAP to Non-GAAP Reconciliation 19 NOTE: Totals may not sum due to rounding.

Selected Information – Old Segmentation 20 NOTE: Totals may not sum due to rounding.

Selected Information – New Segmentation 21 NOTE: Totals may not sum due to rounding.