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 2, 2017

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

 

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

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o                      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o                      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o                      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o                      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
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 November 2, 2017, Trinseo S.A., a public limited liability company ( société anonyme ) existing under the laws of Luxembourg (the “ Company ”), issued a press release announcing its financial results for the third quarter ended September 30, 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 Friday, November 3, 2017 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 November 2, 2017	
99.2	 	Management Commentary, dated November 2, 2017	
99.3	 	Investor Presentation	
 
2 

 
EXHIBIT INDEX

Exhibit
Number	 	Description	
99.1	 	Press Release, dated November 2, 2017	
99.2	 	Management Commentary, dated November 2, 2017	
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: November 2, 2017	 	
 
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 Third Quarter 2017 Financial Results; Updates 2017 Full Year Outlook and Provides Initial 2018 Full Year Outlook
 
Third Quarter 2017 Summary
 
·                   Net Income of $33 million and diluted EPS of $0.74
 
·                   Adjusted EPS of $2.18
 
·                   Adjusted EBITDA of $166 million
 
·                   Cash provided by operating activities of $158 million and Free Cash Flow of $124 million inclusive of approximately $50 million cash sourced from working capital

 	 	Three Months Ended	 	
 	 	September 30,	 	
$millions, except per share data	 	2017	 	2016	 	
Net Sales	 	1,097	 	935	 	
Net Income	 	33	 	67	 	
EPS(Diluted) ($)	 	0.74	 	1.43	 	
Adjusted Net Income*	 	98	 	80	 	
Adjusted EPS ($)*	 	2.18	 	1.70	 	
EBITDA*	 	89	 	126	 	
Adjusted EBITDA*	 	166	 	143	 	

*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 2, 2017 — Trinseo (NYSE: TSE), a global materials company and manufacturer of plastics, latex binders and synthetic rubber, today reported its third quarter 2017 financial results with net sales of $1,097 million, net income of $33 million, and earnings per diluted share of $0.74. Third quarter Adjusted EPS was $2.18 and Adjusted EBITDA was $166 million.
 
Net sales in the third quarter increased 17% versus prior year driven primarily by the pass through of higher raw material costs. Third quarter net income of $33 million, which included a pre-tax charge of approximately $66 million related to the Company’s recent debt refinancing, was $34 million lower than prior year. Third quarter Adjusted EBITDA of $166 million was $23 million higher than prior year. The higher operational profitability was due primarily to higher styrene margins from unplanned outages, including an approximately $15 million impact from Hurricane Harvey, as well as higher polycarbonate and Latex Binders margins. These impacts were partially offset by unfavorable raw material timing, net of favorable price lag, in the current year due mainly to decreasing butadiene costs.
 
Commenting on the Company’s performance, Chris Pappas, Trinseo President and Chief Executive Officer, said, “Business fundamentals remain strong across our segments. Our third quarter operating results were above expectations due to unplanned styrene outages, including the impact of Hurricane Harvey. During the quarter we executed a successful debt refinancing which is expected to decrease our annual cash interest by about $25 million. In addition, we started our new ABS plant in China, closed on the acquisition of API Plastics, and continued to make progress on our SSBR expansion and pilot plant.”

 
Third Quarter Results and Commentary by Business Segment
 
·                   Latex Binders net sales of $266 million for the quarter increased 10% versus prior year primarily from the pass through of higher raw material costs. Lower sales volume decreased revenue by 4%, excluding the divested Latin America business, driven by lower sales volume in the North America paper and carpet markets. Adjusted EBITDA of $32 million was $2 million above prior year from higher margins in Asia due to better market conditions, which was partially offset by lower sales volume.
 
·                   Synthetic Rubber net sales of $119 million for the quarter increased 5% versus prior year primarily due to the pass through of higher raw material costs, which was partially offset by customer destocking in SSBR. Adjusted EBITDA of negative $6 million was $34 million below prior year from unfavorable net timing impacts of $25 million, due to rapidly declining butadiene prices, in addition to SSBR expansion-related costs as well as lower sales volume.
 
·                   Performance Plastics net sales of $207 million for the quarter was 18% above prior year from higher sales volume to the North America automotive and Asia consumer electronics markets as well as the pass through of higher raw material costs. Adjusted EBITDA of $29 million was $1 million below prior year primarily from margin compression, partially offset by higher sales volume.
 
·                   Basic Plastics net sales of $394 million for the quarter was 22% above prior year from higher polystyrene and copolymer sales volume as well as the pass through of higher styrene cost. Adjusted EBITDA of $42 million was $8 million above prior year due primarily to higher polycarbonate margin, from very tight market conditions, as well as higher copolymer volume.
 
·                   Feedstocks net sales of $111 million for the quarter was 37% above prior year due to the pass through of higher styrene prices. Adjusted EBITDA of $46 million was $33 million above prior year from higher styrene margin due to unplanned production outages, including approximately $15 million related to Hurricane Harvey.
 
·                   Americas Styrenics Adjusted EBITDA of $44 million for the quarter was $10 million above prior year due to higher styrene sales volume, including impacts from a stronger export market.
 
Third Quarter Cash Generation
 
Cash provided by operating activities for the quarter was $158 million and capital expenditures were $34 million, resulting in Free Cash Flow for the quarter of $124 million. Third quarter cash from operations and Free Cash Flow included a favorable impact of approximately $50 million from lower working capital primarily from decreasing raw material prices. At the end of the quarter, the Company had $319 million of cash after the third quarter expenditures of $80 million for the purchase of API Plastics as well as debt refinancing related expenditures of $53 million for a call premium to retire our previous senior notes and $36 million for an overall reduction of debt. For a reconciliation of Free Cash Flow to cash provided by (used in) operating activities, see note 3 below.
 
Outlook
 
·                   Fourth quarter 2017 net income of $68 million to $77 million, and earnings per diluted share of $1.53 to $1.71
 
·                   Fourth quarter 2017 Adjusted EBITDA of $130 million to $140 million and Adjusted EPS of $1.53 to $1.71
 
·                   Full year 2017 net income of $280 million to $288 million and earnings per diluted share of $6.23 to $6.41
 
·                   Full year 2017 Adjusted EBITDA of $605 million to $615 million and Adjusted EPS of $7.53 to $7.71
 
·                   Full year 2018 net income of $343 million to $367 million and earnings per diluted share of $7.66 to $8.20
 
·                   Full year 2018 Adjusted EBITDA of $620 million to $650 million and Adjusted EPS of $7.66 to $8.20
 
Commenting on the outlook for the fourth quarter and full year 2017 Pappas said, “Third quarter operating results were above expectations due to stronger than expected styrene margins, and this has continued into the fourth quarter. We expect strong business fundamentals through the end of the year and have therefore updated our full-year outlook.”
 
Continuing with comments on the outlook for full year 2018 Pappas said, “Profitability should be higher in 2018 due mainly to Performance Materials growth initiatives and continued, strong supply and demand dynamics in Basic Plastics & Feedstocks.”

 
For a reconciliation of fourth quarter and full year 2017, as well as 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 November 2, 2017, 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 third quarter 2017 financial results on Friday, November 3, 2017 at 10 AM Eastern Time.
 
Commenting on results will be Chris Pappas, President and Chief Executive Officer, Barry Niziolek, Executive Vice President and Chief Financial Officer, and David Stasse, Vice President, Treasury and 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: 94580472
 
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 2017 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 3, 2018.
 
About Trinseo
 
Trinseo (NYSE:TSE) is a global materials solutions provider and manufacturer of plastics, latex binders, and synthetic rubber. We are focused on delivering innovative and sustainable solutions to help our customers create products that touch lives every day — products that are intrinsic to how we live our lives — across a wide range of end-markets, including automotive, consumer electronics, appliances, medical devices, lighting, electrical, carpet, paper and board, building and construction, and tires. Trinseo had approximately $3.7 billion in net sales in 2016, with 16 manufacturing sites around the world, and nearly 2,200 employees. For more information visit www.trinseo.com.
 
Use of non-GAAP measures
 
In addition to using standard measures of performance and liquidity that are recognized in accordance with accounting principles generally accepted in the United States of America (“GAAP”), we use additional measures of income and liquidity excluding certain GAAP items (“non-GAAP measures”), such as Adjusted EBITDA, Adjusted EPS, and Free Cash Flow. We believe these measures are useful for investors and management in evaluating business trends and performance each period.  These measures are also used to manage our business and assess current period profitability, as well as to provide an appropriate basis to evaluate the effectiveness of our pricing strategies. Such measures are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. The definitions of each of these measures, further discussion of usefulness, and reconciliations of non-GAAP measures to GAAP measures are provided in the Notes to Condensed Consolidated Financial Information presented herein.

 
Note on Forward-Looking Statements
 
This press release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “outlook,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements in this press release may include, without limitation, forecasts of growth, net sales, business activity, acquisitions, financings and other matters that involve known and unknown risks, uncertainties and other factors that may cause results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such factors include, among others: conditions in the global economy and capital markets, volatility in costs or disruption in the supply of the raw materials utilized for our products; loss of market share to other producers of styrene-based chemical products; compliance with environmental, health and safety laws; changes in laws and regulations applicable to our business; our inability to continue technological innovation and successful introduction of new products; system security risk issues that could disrupt our internal operations or information technology services; the loss of customers; the market price of the Company’s ordinary shares prevailing from time to time; the nature of other investment opportunities presented to the Company from time to time; and the Company’s cash flows from operations. Additional risks and uncertainties are set forth in the Company’s reports filed with the United States Securities and Exchange Commission, which are available at http://www.sec.gov/ as well as the Company’s web site at http://www.trinseo.com. As a result of the foregoing considerations, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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

 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,
2017	 	September 30,
2016	 	September 30,
2017	 	September 30,
2016	 	
Net sales	 	$	1,096,582	 	$	935,410	 	$	3,346,271	 	$	2,799,188	 	
Cost of sales	 	949,457	 	795,026	 	2,876,137	 	2,349,392	 	
Gross profit	 	147,125	 	140,384	 	470,134	 	449,796	 	
Selling, general and administrative expenses	 	65,732	 	73,900	 	181,552	 	180,635	 	
Equity in earnings of unconsolidated affiliates	 	43,807	 	36,686	 	93,029	 	110,314	 	
Operating income	 	125,200	 	103,170	 	381,611	 	379,475	 	
Interest expense, net	 	18,436	 	18,832	 	55,355	 	56,542	 	
Loss on extinguishment of long-term debt	 	65,260	 	—	 	65,260	 	—	 	
Other expense (income), net	 	(11	)	1,084	 	(6,072	)	16,628	 	
Income before income taxes	 	41,515	 	83,254	 	267,068	 	306,305	 	
Provision for income taxes	 	8,300	 	16,000	 	56,400	 	66,500	 	
Net income	 	$	33,215	 	$	67,254	 	$	210,668	 	$	239,805	 	
Weighted average shares- basic	 	43,745	 	45,865	 	43,900	 	47,152	 	
Net income per share- basic	 	$	0.76	 	$	1.47	 	$	4.80	 	$	5.09	 	
Weighted average shares- diluted	 	44,782	 	46,961	 	45,046	 	48,041	 	
Net income per share- diluted	 	$	0.74	 	$	1.43	 	$	4.68	 	$	4.99	 	
 	 	 	 	 	 	 	 	 	 	
Dividends per share	 	$	0.36	 	$	0.30	 	$	1.02	 	$	0.60	 	

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

 	 	September 30,	 	December 31,	 	
 	 	2017	 	2016	 	
Assets	 	 	 	 	 	
Current assets	 	 	 	 	 	
Cash and cash equivalents	 	$	318,703	 	$	465,114	 	
Accounts receivable, net of allowance for doubtful accounts	 	719,094	 	564,428	 	
Inventories	 	483,158	 	385,345	 	
Other current assets	 	24,591	 	17,999	 	
Total current assets	 	1,545,546	 	1,432,886	 	
 	 	 	 	 	 	
Investments in unconsolidated affiliates	 	161,883	 	191,418	 	
Property, plant and equipment, net of accumulated depreciation	 	600,067	 	513,757	 	
Other assets	 	 	 	 	 	
Goodwill	 	62,774	 	29,485	 	
Other intangible assets, net	 	207,819	 	177,345	 	
Deferred income tax assets—noncurrent	 	46,942	 	40,187	 	
Deferred charges and other assets	 	31,521	 	24,412	 	
Total other assets	 	349,056	 	271,429	 	
Total assets	 	$	2,656,552	 	$	2,409,490	 	
 	 	 	 	 	 	
Liabilities and shareholders’ equity	 	 	 	 	 	
Current liabilities	 	 	 	 	 	
Short-term borrowings and current portion of long-term debt	 	$	7,000	 	$	5,000	 	
Accounts payable	 	415,709	 	378,029	 	
Income taxes payable	 	32,006	 	23,784	 	
Accrued expenses and other current liabilities	 	140,988	 	135,357	 	
Total current liabilities	 	595,703	 	542,170	 	
Noncurrent liabilities	 	 	 	 	 	
Long-term debt, net of unamortized deferred financing fees	 	1,165,924	 	1,160,369	 	
Deferred income tax liabilities—noncurrent	 	40,332	 	24,844	 	
Other noncurrent obligations	 	284,551	 	237,054	 	
Total noncurrent liabilities	 	1,490,807	 	1,422,267	 	
 	 	 	 	 	 	
Commitments and contingencies	 	 	 	 	 	
Shareholders’ equity	 	 	 	 	 	
Ordinary shares, $0.01 nominal value, 50,000,000 shares authorized (September 30, 2017: 48,778 shares issued and 43,703 shares outstanding ; December 31, 2016: 48,778 shares issued and 44,301 shares outstanding)	 	488	 	488	 	
Additional paid-in-capital	 	576,790	 	573,662	 	
Treasury shares, at cost (September 30, 2017: 5,075 shares; December 31, 2016: 4,477 shares)	 	(263,673	)	(217,483	)	
Retained earnings	 	423,456	 	258,540	 	
Accumulated other comprehensive loss	 	(167,019	)	(170,154	)	
Total shareholders’ equity	 	570,042	 	445,053	 	
Total liabilities and shareholders’ equity	 	$	2,656,552	 	$	2,409,490	 	

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

 	 	Nine Months Ended
September 30,	 	
 	 	2017	 	2016	 	
Cash flows from operating activities	 	 	 	 	 	
Cash provided by operating activities	 	$	194,845	 	$	324,698	 	
 	 	 	 	 	 	
Cash flows from investing activities	 	 	 	 	 	
Capital expenditures	 	(108,875	)	(82,678	)	
Cash paid to acquire a business, net of cash acquired	 	(79,650	)	—	 	
Proceeds from the sale of businesses and other assets	 	46,166	 	174	 	
Distributions from unconsolidated affiliates	 	857	 	4,809	 	
Cash used in investing activities	 	(141,502	)	(77,695	)	
 	 	 	 	 	 	
Cash flows from financing activities	 	 	 	 	 	
Deferred financing fees	 	(19,175	)	—	 	
Short-term borrowings, net	 	(191	)	(126	)	
Purchase of treasury shares	 	(65,225	)	(194,079	)	
Dividends paid	 	(42,231	)	(13,920	)	
Proceeds from exercise of option awards	 	8,349	 	203	 	
Withholding taxes paid on restricted share units	 	(302	)	(74	)	
Net proceeds from issuance of 2024 Term Loan B	 	700,000	 	—	 	
Repayments of 2021 Term Loan B	 	(492,500	)	(3,750	)	
Net proceeds from issuance of 2025 Senior Notes	 	500,000	 	—	 	
Repayments of 2022 Senior Notes	 	(745,950	)	—	 	
Prepayment penalty on long-term debt	 	(52,978	)	—	 	
Cash used in financing activities	 	(210,203	)	(211,746	)	
Effect of exchange rates on cash	 	10,449	 	(231	)	
Net change in cash and cash equivalents	 	(146,411	)	35,026	 	
Cash and cash equivalents—beginning of period	 	465,114	 	431,261	 	
Cash and cash equivalents—end of period	 	$	318,703	 	$	466,287	 	

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

 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	September 30,	 	September 30,	 	September 30,	 	
(In thousands) 	 	2017	 	2016	 	2017	 	2016	 	
Latex Binders	 	$	266.3	 	$	242.6	 	$	846.7	 	$	684.6	 	
Synthetic Rubber	 	118.7	 	112.7	 	456.1	 	326.3	 	
Performance Plastics	 	207.0	 	175.4	 	581.7	 	527.9	 	
Basic Plastics	 	393.6	 	323.7	 	1,156.9	 	1,029.6	 	
Feedstocks	 	111.0	 	81.0	 	304.9	 	230.8	 	
Americas Styrenics*	 	—	 	—	 	—	 	—	 	
Total Net Sales	 	$	1,096.6	 	$	935.4	 	$	3,346.3	 	$	2,799.2	 	

* The results of this segment are comprised entirely of earnings from Americas Styrenics, our 50%-owned equity method investment. As such, we do not separately report net sales of Americas Styrenics within our condensed consolidated 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	 	 	 	
(In millions, except per share data)	 	September 30,
2017	 	September 30,
2016	 	 	 	
Net income	 	$	33.2	 	$	67.3	 	 	 	
Interest expense, net	 	18.4	 	18.8	 	 	 	
Provision for income taxes	 	8.3	 	16.0	 	 	 	
Depreciation and amortization	 	29.2	 	23.8	 	 	 	
EBITDA	 	$	89.1	 	$	125.9	 	 	 	
Loss on extinguishment of long-term debt	 	65.3	 	—	 	Loss on extinguishment of long-term debt	 	
Net loss on disposition of businesses and assets (a)	 	0.2	 	0.3	 	Other expense (income), net	 	
Restructuring and other charges (b)	 	1.5	 	16.8	 	Selling, general, and administrative expenses	 	
Acquisition transaction and integration costs (c)	 	3.8	 	—	 	Selling, general, and administrative expenses; Cost of sales	 	
Asset impairment charges or write-offs (d) 	 	4.3	 	—	 	Selling, general, and administrative expenses; Cost of sales	 	
Other items (e)	 	1.6	 	0.3	 	Other expense (income), net; Selling, general, and administrative expenses; Cost of sales	 	
Adjusted EBITDA	 	$	165.8	 	$	143.3	 	 	 	
Adjusted EBITDA to Adjusted Net Income :	 	 	 	 	 	 	 	
Adjusted EBITDA	 	$	165.8	 	$	143.3	 	 	 	
Interest expense, net	 	18.4	 	18.8	 	 	 	
Provision for income taxes — Adjusted (f)	 	21.0	 	21.4	 	 	 	
Depreciation and amortization — Adjusted (g)	 	28.6	 	23.3	 	 	 	
Adjusted Net Income	 	$	97.8	 	$	79.8	 	 	 	
Adjusted EPS	 	$	2.18	 	$	1.70	 	 	 	
 	 	 	 	 	 	 	 	
Adjusted EBITDA by Segment :	 	 	 	 	 	 	 	
Latex Binders	 	$	32.3	 	$	29.8	 	 	 	
Synthetic Rubber	 	(5.6	)	28.5	 	 	 	
Performance Plastics	 	29.4	 	30.2	 	 	 	
Basic Plastics	 	42.1	 	34.2	 	 	 	
Feedstocks	 	45.6	 	12.7	 	 	 	
Americas Styrenics	 	43.8	 	34.3	 	 	 	
Corporate unallocated	 	(21.8	)	(26.4	)	 	 	
Adjusted EBITDA	 	$	165.8	 	$	143.3	 	 	 	

(a)                   Net loss on disposition of businesses and assets during both the three months ended September 30, 2017 and 2016 relates to charges incurred in connection with the sale of the Company’s latex and automotive businesses in Brazil.
 
(b)                   Restructuring and other charges for the three months ended September 30, 2017 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 three months ended September 30, 2016 primarily relate to the Livorno, Italy action noted above, consisting of an impairment charge for unrecoverable net book value of property, plant, and equipment and other assets, as well as employee and contract termination charges.
 
Note that the accelerated depreciation charges incurred as part of the upgrade and replacement of the Company’s compounding facility in Terneuzen, The Netherlands are included within the “Depreciation and amortization” caption above, and therefore are not included as a separate adjustment within this caption.
 
(c)                    Acquisition transaction and integration costs for the three months ended September 30, 2017 primarily 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 three months ended September 30, 2017 relate to the impairment of certain long-lived assets within the Company’s Performance Plastics segment.

 
(e)                    Other items for the three months ended September 30, 2017 primarily relate to fees incurred in conjunction with the Company’s debt refinancing which was completed during the third quarter of 2017. Other items for the three months ended September 30, 2016 primarily relate to fees incurred in conjunction with the Company’s secondary offerings completed during the period.
 
(f)                     Adjusted to remove the tax impact of the items noted in (a), (b), (c), (d), (e) and (g). 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.
 
(g)                    For the three months ended September 30, 2017 the amount excludes accelerated depreciation of $0.6 million related to the upgrade and replacement of the Company’s compounding facility in Terneuzen, The Netherlands.
 
For the same reasons discussed above, we are providing the following reconciliation of forecasted net income to forecasted Adjusted EBITDA and Adjusted EPS for the three months and year ended December 31, 2017, as well as for the 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	 	Year Ended	 	
(In millions, except per share data)	 	December 31,
2017	 	December 31,
2017	 	December 31,
2018	 	
Adjusted EBITDA	 	$	130 — 140	 	$	605 — 615	 	$	620 — 650	 	
Interest expense, net	 	(15	)	(70	)	(60	)	
Provision for income taxes	 	(18) — (20	)	(75) — (77	)	(97) — (103	)	
Depreciation and amortization	 	(29	)	(109	)	(120	)	
Reconciling items to Adjusted EBITDA (h)	 	—	 	(71	)	—	 	
Net Income	 	68 — 77	 	280 — 288	 	343 — 367	 	
Reconciling items to Adjusted Net Income (h)	 	—	 	58	 	—	 	
Adjusted Net Income	 	68 — 77	 	339 — 347	 	343 — 367	 	
 	 	 	 	 	 	 	 	
Weighted average shares- diluted (i)	 	44.8	 	45.0	 	44.8	 	
EPS - diluted	 	$	1.53 — 1.71	 	$	6.23 — 6.41	 	$	7.66 — 8.20	 	
Adjusted EPS	 	$	1.53 — 1.71	 	$	7.53 — 7.71	 	$	7.66 — 8.20	 	

(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 and year ended December 31, 2017, as well as for the forecasted year ended December 31, 2018, we have not included estimates for these items. Amounts included in the table above for the year ended December 31, 2017 represent actual, previously disclosed reconciling items, which we have aggregated into a single caption.
 
(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	 	Nine Months Ended	 	
 	 	September 30,	 	September 30,	 	September 30,	 	September 30,	 	
(in millions)	 	2017	 	2016	 	2017	 	2016	 	
Cash provided by operating activities	 	$	158.3	 	$	145.0	 	$	194.8	 	$	324.7	 	
Capital expenditures	 	(34.6	)	(29.5	)	(108.9	)	(82.7	)	
Free Cash Flow	 	$	123.7	 	$	115.5	 	$	85.9	 	$	242.0	 	

Exhibit 99.2 

 
Third Quarter 2017 Earnings Management Commentary
November 2, 2017
 
Beginning with Trinseo’s Third Quarter 2017 financial results, the Company will distribute prepared, management explanatory comments on its financial results, along with a press release and presentation slides, at close of market the day prior to its quarterly financial results conference call for investor review. These will be posted on the Company’s Investor Relations website and by means of a Form 8-K filing with the Securities and Exchange Commission.
 
Trinseo’s earnings call on Friday, November 3 will focus predominantly on responding to questions.
 
Trinseo had very strong third quarter operational results, including net income of $33 million and adjusted EBITDA of $166 million. Timing impacts in the quarter were an unfavorable $24 million, on a pre-tax basis.
 
In Latex Binders, we continue to see stronger results driven by our diversified chemistries and cost actions, as well as improved market conditions in Asia, which represents about 30% of our volume.
 
Synthetic Rubber’s result was impacted by customer destocking and rapidly falling butadiene prices in the first half of the quarter, which led to negative timing impacts of $25 million. This destocking in the third quarter has not persisted into the fourth quarter, as we saw stronger order patterns in October.
 
In Performance Plastics, after a relatively weaker second quarter, margins rebounded in the third quarter as raw materials moderated and as we implemented pricing actions. Strong volumes in the consumer electronics and lighting markets offset seasonally lower automotive demand.
 
Basic Plastics performed better than expected due mainly to tight polycarbonate and ABS markets. In Feedstocks, styrene margin in September increased significantly due to several unplanned industry outages, including production and logistical issues related to Hurricane Harvey. These factors resulted in about $30 million of additional Adjusted EBITDA in Feedstocks during the quarter in comparison to the prior outlook. As we said in our earnings pre-announcement on October 12, about $15 million of this $30 million was from increases in styrene margin directly attributable to Hurricane Harvey. Styrene margins were strong for our joint venture, Americas Styrenics, as well.
 
Cash provided by operating activities for the quarter was $158 million and capital expenditures were $34 million, resulting in Free Cash Flow for the quarter of $124 million. Third quarter cash from operations and Free Cash Flow included a favorable impact of approximately $50 million from lower working capital primarily from decreasing raw material prices.
 
At the end of the quarter, the Company had $319 million of cash inclusive of the third quarter expenditures of $80 million for the purchase of API Plastics, $9 million of share repurchases, and approximately $130 million spent on the debt refinancing.  This $130 million consisted of $53 million of call premium, $36 million for debt reduction, $23 million of fees and expenses, and $18 million of accrued interest.
 
The third quarter GAAP effective tax rate of 20% was below the level of the prior quarter due to a favorable mix of profitability in lower taxed jurisdictions.
 
Looking at the fourth quarter for European styrene monomer margin over raw materials, October declined from September as offline capacity began to come back online. We expect this shift to continue through the quarter, and overall expect margins to be, on average, $110 per ton lower than they were in the third quarter.
 
In total for Trinseo, we expect fourth quarter net income of $68 million to $77 million and Adjusted EBITDA of $130 million to $140 million. This outlook assumes minimal impact from net timing.

 
For full year 2017 we expect net income of $280 million to $288 million and Adjusted EBITDA of $605 million to $615 million. This outlook includes about $25 million of pre-tax unfavorable net timing.
 
For 2018, we expect net income of $343 million to $367 million and Adjusted EBITDA of $620 million to $650 million.  There were several events in 2017 that affected operating results including net timing impacts and raw material tailwinds in Latex Binders. In addition, we estimate a positive 2017 impact of approximately $30 million to the Feedstocks segment from unplanned styrene outages. Our outlook for 2018 assumes that these events do not reoccur. In addition, it includes approximately $35 million of our targeted $100 million of Performance Materials growth initiatives.
 
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 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 Form 8-K filing for this commentary in Exhibit 99.1-Press Release, dated November 2, 2017.
 
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,” “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 
Third Quarter 2017 Financial Results November 2, 2017 ™ Trademark of Trinseo S.A. or its affiliates

Introductions & Disclosure Rules 2 Disclosure Rules Cautionary Note on Forward-Looking Statements. This presentation contains forward-looking statements including, without limitation, statements concerning plans, objectives, goals, projections, strategies, future events or performance, and underlying assumptions and other statements, which are not statements of historical facts or guarantees or assurances of future performance. Forward-looking statements may be identified by the use of words like “expect,” “anticipate,” “intend,” “forecast,” “outlook,” “will,” “may,” “might,” “potential,” “likely,” “target,” “plan,” “contemplate,” “seek,” “attempt,” “should,” “could,” “would” or expressions of similar meaning. Forward-looking statements reflect management’s evaluation of information currently available and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Factors that might cause such a difference include, but are not limited to, those discussed in our Annual Report on Form 10-K, under Part I, Item 1A — “Risk Factors” and elsewhere in that report. As a result of these or other factors, our actual results may differ materially from those contemplated by the forward-looking statements. Therefore, we caution you against relying on any of these forward-looking statements. The forward-looking statements included in this presentation are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. This presentation contains financial measures that are not in accordance with generally accepted accounting principles in the US (“GAAP”) including Adjusted EBITDA, Adjusted Net Income, 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 & Investor Relations

3 Key Points * See Appendix for reconciliation of non-GAAP measures. Q3 2017 Operational Results Exceeded Expectations Business fundamentals remain strong across portfolio Higher level of unplanned styrene outages Debt Refinancing Successfully completed in Q3 Cash interest savings of $25 million per year 2017 Outlook Net Income of $280MM to $288MM, Diluted EPS of $6.23 to $6.41 Adj EBITDA* of $605MM to $615MM, Adj EPS* of $7.53 to $7.71 Strong third quarter performance Tight polycarbonate and ABS markets Continued Progress on Performance Materials Growth Targets Completed Acquisition of API Plastics Latex Binders improvement Synthetic Rubber SSBR expansion, pilot plant, and new products ABS plant in China 2018 Outlook Net Income of $343MM to $367MM, Diluted EPS of $7.66 to $8.20 Adj EBITDA* of $620MM to $650MM, Adj EPS* of $7.66 to $8.20 Outlook excludes significant styrene unplanned outages

4 Note: Division and Segment Adjusted EBITDA excludes Corporate Adjusted EBITDA of ($22) million. Totals may not sum due to rounding. * Includes $24 million pre-tax unfavorable net timing impact; 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 Q3 2017 Financial Results & Highlights Overall strong fundamental business conditions Latex Binders improvement, particularly in Asia Synthetic Rubber in line with guidance; EBITDA impacted by $25 million unfavorable net timing Performance Plastics performance driven by strong volumes and pricing initiatives Continued favorable supply / demand dynamics in Basic Plastics Very strong styrene margins due to unplanned industry outages Record AmSty performance Performance Materials Latex Binders Net Sales: $266MM Adj EBITDA: $32MM Synthetic Rubber Net Sales: $119MM Adj EBITDA: $(6)MM Performance Plastics Net Sales: $207MM Adj EBITDA: $29MM Basic Plastics & Feedstocks Basic Plastics Net Sales: $394MM Adj EBITDA: $42MM Feedstocks Net Sales**: $111MM Adj EBITDA: $46MM Americas Styrenics Adj EBITDA: $44MM Net Income: $33MM Adj EBITDA*: $166MM EPS / Adj EPS*: $0.74 / $2.18

Higher Adjusted EBITDA vs prior year primarily due to higher margin in Asia Diversified chemistries and geography, cost actions, and raw material tailwinds more than offsetting declines in coated paper Latex Binders 5 $266 $243 Q3'17 Q3'16 Net Sales ($ MM) $32 $30 Q3'17 Q3'16 Adjusted EBITDA ($MM) 298 318 Q3'17 Q3'16 Volume (MM Lbs)

Adjusted EBITDA in Q3 2017 includes $25 million of unfavorable net timing from declining butadiene $8 million impact from SSBR expansion, customer destocking Synthetic Rubber 6 $119 $113 Q3'17 Q3'16 Net Sales ($ MM) ($6) $28 Q3'17 Q3'16 Adjusted EBITDA ($MM) 137 150 Q3'17 Q3'16 Volume (MM Lbs)

Net sales increase vs prior year driven by higher volumes in North America automotive and Asia consumer electronics as well as raw material pass through Performance Plastics 7 $207 $175 Q3'17 Q3'16 Net Sales ($ MM) $29 $30 Q3'17 Q3'16 Adjusted EBITDA ($MM) 150 145 Q3'17 Q3'16 Volume (MM Lbs)

Net sales increase vs prior year due to higher polystyrene and copolymer sales volume as well as the pass through of higher raw material costs Adjusted EBITDA higher than prior year due primarily to higher polycarbonate margin Basic Plastics 8 $394 $324 Q3'17 Q3'16 Net Sales ($ MM) $42 $34 Q3'17 Q3'16 Adjusted EBITDA ($MM) 538 504 Q3'17 Q3'16 Volume (MM Lbs)

Approximately $30 million from unplanned styrene outages; includes favorable $15 million attributable to Hurricane Harvey Feedstocks & Americas Styrenics 9 FEEDSTOCKS Higher YoY styrene margin $35 million dividend received in Q3 AMERICAS STYRENICS $46 $13 Q3'17 Q3'16 Adjusted EBITDA ($MM) $44 $34 Q3'17 Q3'16 Adjusted EBITDA ($MM)

Western Europe and Asia Styrene Margin Trends 10 Western Europe Margin (1) Asia Margin (2) Q3 to Q4 ~($110/MT) Trinseo’s Feedstocks reporting segment captures styrene monomer margin through both internally produced and cost-based purchases of styrene. Annually, we produce nearly 700 kilotons of styrene in Western Europe and purchase approximately 300 kilotons of styrene in Asia with cost-based economics. With all other inputs remaining equal, a $50 per metric ton change in styrene margins would be expected to impact the Feedstocks reporting segment’s annual Adjusted EBITDA by approximately $35 million in Europe and approximately $15 million in Asia. Other factors that could impact the Feedstocks segment Adjusted EBITDA include, but are not limited to, utilities, freight, manufacturing costs, overhead costs, discounts of styrene, benzene, and ethylene, as well as raw material timing. SOURCE: Western Europe Styrene, Benzene, Ethylene Prices: ICIS. Asia Styrene, Benzene, Ethylene prices: IHS. Styrene margin over raw materials: Trinseo. (1) Styrene: W. Europe Contract Monthly Market (Delivered W. Europe); Benzene: 50% W. Europe Spot Avg (CIF NW Europe / Basis ARA) and 50% W. Europe Contract – Market (FOB/CIF W. Europe); Ethylene: W. Europe Contract – Market Pipeline (Delivered W. Europe). (2) Styrene: NE Asia Avg Spot Posting (CFR China); Benzene: NE Asia Spot Avg (FOB S. Korea); Ethylene: NE Asia Spot Avg (CFR NE Asia). Styrene margin over raw materials: Styrene less (80% * Benzene) less (30% * Ethylene). Styrene Ethylene Benzene SM Margin over Raw Materials Styrene Ethylene Benzene SM Margin over Raw Materials Q3 to Q4 ~($90/MT) $190 $300 $225 $228 $270 $240 $152 $137 $241 $294 $237 $322 $199 $190 $190 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Styrene Margin - USD/MT Prices – USD/MT $254 $276 $393 $323 $501 $678 $482 $233 $319 $413 $428 $639 $476 $338 $335 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Styrene Margin - USD/MT Prices – USD/MT

Increased seasonal demand in consumer electronics Raw materials moderating Q4 and Full Year 2017 Outlook 11 Performance Materials Synthetic Rubber Latex Binders Performance Plastics Lower volume in Q4 due to seasonality Return to normalized volumes Includes ~$5 million expense related to SSBR expansion Corporate Q4 Adj EBITDA* * See Appendix for reconciliation of non-GAAP measures Basic Plastics & Feedstocks Feedstocks Basic Plastics Americas Styrenics Seasonally lower volumes Strong polycarbonate margin from market tightness Sequentially lower following Q3 unplanned outages Moderating styrene margins through Q4 FY Adj EBITDA* ~$130 ~$95 ~$110 ~$145 ~$100 ~$125 ~($95) Fourth Quarter Assumptions ~$30 ~$30 ~$15 ~$35 ~($22) ~$25 ~$25 ($MM) Net Income Adjusted EBITDA* Net Timing Impact ~($25) minimal $130 - $140 $605 - $615 $68 - $77 $280 - $288

2018 Outlook 12 Net income of $343 million to $367 million; Adjusted EBITDA* of $620 million to $650 million Assumes no net timing impacts Includes about 35% of Performance Materials $100MM growth target Assumes no significant unplanned styrene outages Effective Tax Rate of ~22% Cash Items Capital Expenditures ~ $150 million Cash Paid for Income Taxes ~ $100 million Cash Paid for Interest ~ $50 million * See Appendix for reconciliation of non-GAAP measures.

Appendix

US GAAP to Non-GAAP Reconciliation 14 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 2, 2017. Totals may not sum due to rounding. Profitability Outlook Free Cash Flow Outlook

US GAAP to Non-GAAP Reconciliation 15 NOTE: Totals may not sum due to rounding.

Selected Segment Information 16 NOTE: Totals may not sum due to rounding.