UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 
FORM 8-K

 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): August 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 August 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 second quarter ended June 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 Thursday, August 3, 2017 at 10 AM Eastern Time. A copy of the presentation materials, which will be discussed on the call, is furnished hereto as Exhibit 99.2.
 
The information contained herein and in the accompanying exhibits shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
 
ITEM 9.01.                                  Financial Statements and Exhibits
 
(d) Exhibits

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

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

 	 	TRINSEO S.A.	

 	 	By:	/s/ Barry J. Niziolek	
 	 	Name:	Barry J. Niziolek	
 	 	Title:	Executive Vice President and Chief Financial Officer	
 	 	 	 	
Date: August 2, 2017	 	 	 	
 
3 

 
EXHIBIT INDEX

Exhibit
Number	 	Description	
99.1	 	Press Release, dated August 2, 2017	
99.2	 	Investor Presentation	
 
4 

Exhibit 99.1

 

Press contacts:	 	 	 	Investor Contact:	
Trinseo	 	Makovsky	 	Trinseo	
Donna St. Germain	 	John McInerney	 	David Stasse	
Tel : +1 610-240-3307	 	Tel: +1 212-508-9628	 	Tel : +1 610-240-3207	
Email: stgermain@trinseo.com	 	Email: jmcinerney@makovsky.com	 	Email: dstasse@trinseo.com	
 
Trinseo Reports Second Quarter 2017 Financial Results; No Change to Strong Business Fundamentals with Updated Full Year Outlook for Net Timing Impacts
 
Second Quarter 2017 Summary
 
·                   Net Income of $60 million and diluted EPS of $1.34
 
·                   Adjusted EPS of $1.39
 
·                   Adjusted EBITDA of $126 million
 
·                   Cash provided by operating activities of $62 million; Free Cash Flow of $24 million inclusive of approximately $38 million cash used for working capital

 	 	Three Months Ended	 	
 	 	June 30,	 	March 31,	 	
$millions, except per share data	 	2017	 	2016	 	2017	 	
Net Sales	 	1,145	 	970	 	1,104	 	
Net Income	 	60	 	96	 	117	 	
EPS(Diluted) ($)	 	1.34	 	2.00	 	2.59	 	
Adjusted Net Income*	 	63	 	110	 	110	 	
Adjusted EPS ($)*	 	1.39	 	2.30	 	2.42	 	
EBITDA*	 	124	 	168	 	190	 	
Adjusted EBITDA*	 	126	 	182	 	182	 	

*For a reconciliation of EBITDA, Adjusted EBITDA, and Adjusted Net Income to Net Income, as well as a reconciliation of Adjusted EPS, see note 2 below.
 
BERWYN, Pa — August 2, 2017 — Trinseo (NYSE: TSE), a global materials company and manufacturer of plastics, latex binders and synthetic rubber, today reported its second quarter 2017 financial results with net sales of $1,145 million, net income of $60 million, and earnings per diluted share of $1.34. Second quarter Adjusted EPS was $1.39 and Adjusted EBITDA was $126 million.
 
Net sales in the second quarter increased 18% versus prior year driven primarily by the pass through of higher raw material costs. Second quarter net income of $60 million was $36 million lower than prior year, and second quarter Adjusted EBITDA of $126 million was $56 million lower than prior year. These decreases were primarily from unfavorable raw material timing, partially offset by favorable price lag, lower margin in Feedstocks and Performance Plastics, and lower equity affiliate income from Americas Styrenics. These unfavorable impacts were partially offset by higher volume in Synthetic Rubber and higher margin in Latex Binders.
 
Commenting on the Company’s performance, Chris Pappas, Trinseo President and Chief Executive Officer, said, “We continue to see strong fundamental business conditions. Our second quarter results were in line with expectations when you exclude the impact of raw material timing and price lag, which were greater than expected due to a sharper decline of butadiene and styrene-related costs. In addition, we continue to make excellent progress on our Performance Materials growth initiatives, including our recently completed acquisition of API Plastics, to go along with our other investments such as the SSBR expansion and pilot plant, new ABS capacity in

 
China, and new product and application growth. Also, our Board of Directors recently approved a 20% dividend increase as well as an increased stock repurchase authorization of 2 million shares. These initiatives are in line with our balanced cash deployment plan to maximize shareholder value.”
 
The Company intends to launch a refinancing of its term loan and existing bonds over the next two weeks and expects to reduce its interest expense.
 
Second Quarter Results and Commentary by Business Segment
 
·                   Latex Binders net sales of $292 million for the quarter increased 25% versus prior year primarily driven by the pass through of higher raw material costs. Lower sales volume decreased revenue by 5%, excluding the recently divested Latin America business, driven by North America paper customer destocking and a declining market. Adjusted EBITDA of $36 million was $15 million above prior year from higher margins, including favorable net timing, as market conditions have improved, particularly in Asia.
 
·                   Synthetic Rubber net sales of $174 million for the quarter increased 56% versus prior year driven by the pass through of higher raw material costs as well as higher SSBR and Ni-PBR sales volume. Adjusted EBITDA of $28 million was $2 million below prior year from unfavorable raw material timing, partially offset by favorable price lag. This timing impact was largely offset by higher sales volume. Sales of enhanced SSBR product grades are driving higher SSBR sales volume.
 
·                   Performance Plastics net sales of $190 million for the quarter was 3% above prior year driven by the pass through of higher raw material costs. Higher sales volume increased revenue by 3%, excluding the recently divested Latin America business, driven by higher volumes to the automotive market in North America and the consumer electronics market in Asia. These impacts were partially offset by the divestiture of the Latin America business. Adjusted EBITDA of $23 million was $15 million below prior year primarily from margin compression, partially offset by higher sales volume.
 
·                   Basic Plastics net sales of $382 million for the quarter was 5% above prior year as the pass through of higher raw material costs was partially offset by lower polystyrene sales volume in Asia, with a focus on higher margin business, as well as lower polycarbonate sales volume as more polycarbonate was utilized internally. Adjusted EBITDA of $32 million was $11 million below prior year driven by unfavorable raw material timing as well as lower polystyrene margin compared to a very strong prior year.
 
·                   Feedstocks net sales of $107 million for the quarter was 36% above prior year due to the pass through of higher styrene prices as well as higher styrene-related sales volume. Adjusted EBITDA of negative $1 million was $34 million below prior year from lower styrene margin, including unfavorable raw material timing.
 
·                   Americas Styrenics Adjusted EBITDA of $30 million for the quarter was $8 million below prior year from lower margin on second quarter sales of styrene purchased during the first quarter maintenance-related outage at the St. James, Louisiana styrene facility in a decreasing price environment.
 
Second Quarter Cash Generation
 
Cash provided by operating activities for the quarter was $62 million and capital expenditures were $38 million, resulting in Free Cash Flow for the quarter of $24 million. Second quarter cash from operations and Free Cash Flow were negatively impacted by approximately $38 million from higher working capital primarily from higher raw material prices. At the end of the quarter, the Company had $400 million of cash, inclusive of the $30 million used in the second quarter for the repurchase of approximately 467,000 shares. For a reconciliation of Free Cash Flow to cash provided by (used in) operating activities, see note 3 below.
 
Outlook
 
·                   Third quarter 2017 net income of $50 million to $58 million, and earnings per diluted share of $1.10 to $1.28
 
·                   Third quarter 2017 Adjusted EBITDA of $110 million to $120 million and Adjusted EPS of $1.10 to $1.28
 
·                   Full year 2017 net income of $294 million to $302 million and earnings per diluted share of $6.51 to $6.69
 
·                   Full year 2017 Adjusted EBITDA of $550 million to $560 million and Adjusted EPS of $6.40 to $6.58

 
·                   Full year guidance updated and in line with guidance from first quarter earnings call except for $55 million of additional unfavorable net timing impacts. This guidance excludes the impact of anticipated debt refinancing activities.
 
Commenting on the outlook for the third quarter and full year 2017 Pappas said, “We expect strong business fundamentals through 2017 and our growth initiatives continue as planned. Our full year guidance for Trinseo remains as outlined in our first quarter earnings call with the exception of additional unfavorable net timing impacts of $55 million due to rapidly declining raw material prices in the second and third quarters.”
 
For a reconciliation of third quarter and full year 2017 net income to Adjusted EBITDA and Adjusted EPS, see note 2 below. Additionally, refer to the appendix within Exhibit 99.2 of our Form 8-K, dated August 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 second quarter 2017 financial results tomorrow, Thursday, August 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: +1 866-393-4306
Participant International Dial-In Number: +1 617-826-1698
Conference ID: 53970924
 
The Company will also offer a live Webcast of the conference call with question and answer session via the registration page of the Trinseo Investor Relations website.
 
Trinseo has posted its second quarter 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 August 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 15 manufacturing sites around the world, and nearly 2,200 employees. For more information visit www.trinseo.com.
 
Use of non-GAAP measures
 
In addition to using standard measures of performance and liquidity that are recognized in accordance with accounting principles generally accepted in the United States of America (“GAAP”), we use additional measures of income and liquidity excluding certain GAAP items (“non-GAAP measures”), such as Adjusted EBITDA, Adjusted EPS, and Free Cash Flow. We believe these measures are useful for investors and management in evaluating business trends and performance each period.  These measures are also used to manage our business and assess current period profitability, as well as to provide an appropriate basis to evaluate the effectiveness of our pricing strategies. Such measures are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. The definitions of each of these measures, further discussion of usefulness, and reconciliations of non-GAAP measures to GAAP measures are provided in the Notes to Condensed Consolidated Financial Information presented herein.

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

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

 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30, 
 2017	 	March 31, 
 2017	 	June 30, 
 2016	 	June 30, 
 2017	 	June 30, 
 2016	 	
Net sales	 	$	1,145,199	 	$	1,104,490	 	$	969,694	 	$	2,249,689	 	$	1,863,778	 	
Cost of sales	 	1,019,992	 	906,688	 	799,954	 	1,926,680	 	1,554,366	 	
Gross profit	 	125,207	 	197,802	 	169,740	 	323,009	 	309,412	 	
Selling, general and administrative expenses	 	55,384	 	60,436	 	52,249	 	115,820	 	106,735	 	
Equity in earnings of unconsolidated affiliates	 	29,927	 	19,295	 	38,602	 	49,222	 	73,628	 	
Operating income	 	99,750	 	156,661	 	156,093	 	256,411	 	276,305	 	
Interest expense, net	 	18,719	 	18,200	 	18,814	 	36,919	 	37,710	 	
Other expense (income), net	 	2,072	 	(8,133	)	12,875	 	(6,061	)	15,544	 	
Income before income taxes	 	78,959	 	146,594	 	124,404	 	225,553	 	223,051	 	
Provision for income taxes	 	18,800	 	29,300	 	28,600	 	48,100	 	50,500	 	
Net income	 	$	60,159	 	$	117,294	 	$	95,804	 	$	177,453	 	$	172,551	 	
Weighted average shares- basic	 	43,902	 	44,057	 	46,952	 	43,979	 	47,803	 	
Net income per share- basic	 	$	1.37	 	$	2.66	 	$	2.04	 	$	4.03	 	$	3.61	 	
Weighted average shares- diluted	 	44,995	 	45,313	 	47,857	 	45,165	 	48,554	 	
Net income per share- diluted	 	$	1.34	 	$	2.59	 	$	2.00	 	$	3.93	 	$	3.55	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Dividends per share	 	$	0.36	 	$	0.30	 	$	0.30	 	$	0.66	 	$	0.30	 	

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

 	 	June 30,	 	December 31,	 	
 	 	2017	 	2016	 	
Assets	 	 	 	 	 	
Current assets	 	 	 	 	 	
Cash and cash equivalents	 	$	399,928	 	$	465,114	 	
Accounts receivable, net of allowance for doubtful accounts	 	723,264	 	564,428	 	
Inventories	 	473,936	 	385,345	 	
Other current assets	 	14,366	 	17,999	 	
Total current assets	 	1,611,494	 	1,432,886	 	
 	 	 	 	 	 	
Investments in unconsolidated affiliates	 	153,077	 	191,418	 	
Property, plant and equipment, net of accumulated depreciation	 	556,481	 	513,757	 	
Other assets	 	 	 	 	 	
Goodwill	 	31,990	 	29,485	 	
Other intangible assets, net	 	178,270	 	177,345	 	
Deferred income tax assets—noncurrent	 	37,095	 	40,187	 	
Deferred charges and other assets	 	32,847	 	24,412	 	
Total other assets	 	280,202	 	271,429	 	
Total assets	 	$	2,601,254	 	$	2,409,490	 	
 	 	 	 	 	 	
Liabilities and shareholders’ equity	 	 	 	 	 	
Current liabilities	 	 	 	 	 	
Short-term borrowings and current portion of long-term debt	 	$	5,000	 	$	5,000	 	
Accounts payable	 	394,033	 	378,029	 	
Income taxes payable	 	34,066	 	23,784	 	
Accrued expenses and other current liabilities	 	127,322	 	135,357	 	
Total current liabilities	 	560,421	 	542,170	 	
Noncurrent liabilities	 	 	 	 	 	
Long-term debt, net of unamortized deferred financing fees	 	1,192,844	 	1,160,369	 	
Deferred income tax liabilities—noncurrent	 	30,325	 	24,844	 	
Other noncurrent obligations	 	257,391	 	237,054	 	
Total noncurrent liabilities	 	1,480,560	 	1,422,267	 	
 	 	 	 	 	 	
Commitments and contingencies	 	 	 	 	 	
Shareholders’ equity	 	 	 	 	 	
Ordinary shares, $0.01 nominal value, 50,000,000 shares authorized (June 30, 2017: 48,778 shares issued and 43,733 shares outstanding ; December 31, 2016: 48,778 shares issued and 44,301 shares outstanding)	 	488	 	488	 	
Additional paid-in-capital	 	575,011	 	573,662	 	
Treasury shares, at cost (June 30, 2017: 5,045 shares; December 31, 2016: 4,477 shares)	 	(258,913	)	(217,483	)	
Retained earnings	 	406,270	 	258,540	 	
Accumulated other comprehensive loss	 	(162,583	)	(170,154	)	
Total shareholders’ equity	 	560,273	 	445,053	 	
Total liabilities and shareholders’ equity	 	$	2,601,254	 	$	2,409,490	 	

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

 
 	 	Six Months Ended
June 30,	 	
 	 	2017	 	2016	 	
Cash flows from operating activities	 	 	 	 	 	
Cash provided by operating activities	 	$	36,588	 	$	179,707	 	
 	 	 	 	 	 	
Cash flows from investing activities	 	 	 	 	 	
Capital expenditures	 	(74,286	)	(53,153	)	
Proceeds from the sale of businesses and other assets	 	43,680	 	129	 	
Distributions from unconsolidated affiliates	 	857	 	4,809	 	
Cash used in investing activities	 	(29,749	)	(48,215	)	
 	 	 	 	 	 	
Cash flows from financing activities	 	 	 	 	 	
Short-term borrowings, net	 	(126	)	(126	)	
Repayments of term loans	 	(2,500	)	(2,500	)	
Purchase of treasury shares	 	(56,415	)	(94,362	)	
Dividends paid	 	(26,473	)	—	 	
Proceeds from exercise of option awards	 	5,984	 	87	 	
Withholding taxes paid on restricted share units	 	(288	)	(74	)	
Cash used in financing activities	 	(79,818	)	(96,975	)	
Effect of exchange rates on cash	 	7,793	 	(565	)	
Net change in cash and cash equivalents	 	(65,186	)	33,952	 	
Cash and cash equivalents—beginning of period	 	465,114	 	431,261	 	
Cash and cash equivalents—end of period	 	$	399,928	 	$	465,213	 	

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

 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	June 30,	 	
(In thousands) 	 	2017	 	2017	 	2016	 	2017	 	2016	 	
Latex Binders	 	$	291.5	 	$	288.9	 	$	232.5	 	$	580.5	 	$	442.0	 	
Synthetic Rubber	 	174.0	 	163.4	 	111.4	 	337.4	 	213.6	 	
Performance Plastics	 	190.2	 	184.6	 	183.9	 	374.7	 	352.5	 	
Basic Plastics	 	382.5	 	380.7	 	363.3	 	763.2	 	705.9	 	
Feedstocks	 	107.0	 	86.9	 	78.6	 	193.9	 	149.8	 	
Americas Styrenics*	 	—	 	—	 	—	 	—	 	—	 	
Total Net Sales	 	$	1,145.2	 	$	1,104.5	 	$	969.7	 	$	2,249.7	 	$	1,863.8	 	

* 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)	 	June 30,
2017	 	March 31,
2017	 	June 30,
2016	 	 	 	
Net income	 	$	60.2	 	$	117.3	 	$	95.8	 	 	 	
Interest expense, net	 	18.7	 	18.2	 	18.8	 	 	 	
Provision for income taxes	 	18.8	 	29.3	 	28.6	 	 	 	
Depreciation and amortization	 	26.3	 	24.7	 	24.9	 	 	 	
EBITDA	 	$	124.0	 	$	189.5	 	$	168.1	 	 	 	
Net loss (gain) on disposition of businesses and assets (a)	 	—	 	(9.9	)	12.9	 	Other expense (income), net	 	
Restructuring and other charges (b)	 	1.1	 	2.1	 	1.1	 	Selling, general, and administrative expenses	 	
Acquisition transaction and integration costs (c)	 	1.1	 	—	 	—	 	Selling, general, and administrative expenses	 	
Other items (d)	 	—	 	—	 	0.3	 	Selling, general, and administrative expenses	 	
Adjusted EBITDA	 	$	126.2	 	$	181.7	 	$	182.4	 	 	 	
Adjusted EBITDA to Adjusted Net Income :	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA	 	$	126.2	 	$	181.7	 	$	182.4	 	 	 	
Interest expense, net	 	18.7	 	18.2	 	18.8	 	 	 	
Provision for income taxes — Adjusted (e)	 	19.2	 	29.5	 	28.8	 	 	 	
Depreciation and amortization — Adjusted (f)	 	25.8	 	24.2	 	24.9	 	 	 	
Adjusted Net Income	 	$	62.5	 	$	109.8	 	$	109.9	 	 	 	
Adjusted EPS	 	$	1.39	 	$	2.42	 	$	2.30	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA by Segment :	 	 	 	 	 	 	 	 	 	
Latex Binders	 	$	36.1	 	$	36.8	 	$	21.5	 	 	 	
Synthetic Rubber	 	27.7	 	46.3	 	30.2	 	 	 	
Performance Plastics	 	23.5	 	26.9	 	38.5	 	 	 	
Basic Plastics	 	31.8	 	38.9	 	43.1	 	 	 	
Feedstocks	 	(1.2	)	41.9	 	32.5	 	 	 	
Americas Styrenics	 	29.9	 	18.5	 	37.7	 	 	 	
Corporate unallocated	 	(21.6	)	(27.6	)	(21.1	)	 	 	
Adjusted EBITDA	 	$	126.2	 	$	181.7	 	$	182.4	 	 	 	

(a)                   Net gain on disposition of businesses and assets during the three months ended March 31, 2017 relates primarily to sale of our 50% share in Sumika Styron Polycarbonate, for which the Company recorded a gain on sale of $9.3 million during the period. Net loss on disposition of businesses and other assets for the three months ended June 30, 2016 represents the impairment charge recorded for the estimated loss on sale of our latex and automotive businesses in Brazil.
 
(b)                   Restructuring and other charges for the three months ended June 30, 2017 and March 31, 2017 primarily relate to charges related to the upgrade and replacement of the Company’s compounding facility in Terneuzen, The Netherlands as well as charges incurred in connection with the decision to cease manufacturing activities at our latex binders manufacturing facility in Livorno, Italy. Restructuring and other charges for the three months ended June 30, 2016 primarily relate to charges incurred in connection with the decision to divest our operations in Brazil as well as the closure of our Allyn’s Point manufacturing facility in Gales Ferry, Connecticut.
 
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 June 30, 2017 relate to advisory and professional fees incurred in conjunction with the Company’s acquisition of API Applicazioni Plastiche Industriali S.p.A., or API Plastics, a soft-touch polymer and bioplastics manufacturer based in Mussolente, Italy, which closed in July 2017.
 
(d)                   Other items for the three months ended June 30, 2016 relate to fees incurred in conjunction with the Company’s secondary offerings completed during the periods above.
 
(e)                    Adjusted to remove the tax impact of the items noted in (a), (b), (c), (d), and (f). 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.
 
(f)                     For both the three months ended June 30, 2017 and March 31, 2017, respectively, 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 ended September 30, 2017, as well as for the full year ended December 31, 2017.  See “Note on forward-looking statements” above for a discussion of the limitations of these forecasts.

 	 	Three Months Ended	 	Year Ended	 	
(In millions, except per share data)	 	September 30,
2017	 	December 31,
2017	 	
Adjusted EBITDA	 	$	110 - 120	 	$	550 - 560	 	
Interest expense, net	 	(19)	 	(74)	 	
Provision for income taxes	 	(16) - (18)	 	(87) – (89)	 	
Depreciation and amortization	 	(25)	 	(101)	 	
Reconciling items to Adjusted EBITDA (g)	 	—	 	6	 	
Net Income	 	50 - 58	 	294 - 302	 	
Reconciling items to Adjusted Net Income (g)	 	—	 	(5)	 	
Adjusted Net Income	 	50 - 58	 	288 - 296	 	
 	 	 	 	 	 	
Weighted average shares- diluted (h)	 	45.0	 	45.1	 	
Adjusted EPS	 	$	1.10 – 1.28	 	$	6.40 – 6.58	 	

(g)                    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 September 30, 2017 and full year ended December 31, 2017, we have not included estimates for these items.
 
(h)                   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.

 
Prior period information below has been recast from its previous presentation to reflect the Company’s current method for calculating Free Cash Flow. Prior to the third quarter of 2016, we calculated Free Cash Flow as cash from both operating and investing activities less the impact of changes in restricted cash. We believe our revised method is more aligned to investors’ common understanding of Free Cash Flow and allows for easier comparisons between the Company and its peers. Additionally, the Company has not reported material restricted cash balances since 2012 and is not expected to do so under its current practices.
 
Free Cash Flow

 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	June 30,	 	June 30,	 	June 30,	 	
(in millions)	 	2017	 	2016	 	2017	 	2016	 	
Cash provided by operating activities	 	$	62.3	 	$	94.8	 	$	36.6	 	$	179.7	 	
Capital expenditures	 	(38.2	)	(26.7	)	(74.3	)	(53.2	)	
Free Cash Flow	 	$	24.1	 	$	68.1	 	$	(37.7	)	$	126.5	 	

Exhibit 99.2
Second Quarter 2017 Financial Results August 3, 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. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy securities. Any securities issued pursuant to our refinancing will not be registered under the Securities Act and may not be sold in the United States absent registration or an applicable exemption therefrom. 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. Q2 2017 Results at Guidance Midpoint Excluding Timing Impacts Business fundamentals remain strong Performance Materials in line with expectations Performance Materials on Track to Meet or Exceed Growth Target Acquisition of API in Performance Plastics Latex Binders improvement Synthetic Rubber SSBR expansion, pilot plant, and new products on time Debt Refinancing To be launched over next two weeks Expect a reduction in interest expense Dividend Increase and New Share Repurchase Authorization Dividend increase of 20% Repurchase authorization of 2 million shares Updating 2017 Guidance Net Income of $294MM to $302MM Adj EBITDA* of $550MM to $560MM Updated guidance fundamentally the same as our prior guidance, excluding timing impacts

API Plastics Acquisition 4 Strong position in soft-touch polymers such as Thermoplastic Elastomers (TPE) TPEs are often molded over rigid plastics such as ABS and PC/ABS – presenting opportunities for complementary technology product offerings Enables growth synergies across multiple end markets and geographies with similar applications to benefit customers Aligns with our Performance Materials growth strategy

Impact of Raw Material Price Changes 5 Q4’16 / Q1’17: Outage-driven price increases resulted in favorable net timing impacts; working capital build Q2’17 / Q3’17: As supply returns, price decreases resulting in unfavorable net timing impacts; expect working capital release Styrene Benzene Q4’16 / Q1’17 Q2’17 / Q3’17 Q4’16 / Q1’17 Q2’17 / Q3’17 Expanding net timing disclosure to include segment level detail to provide better transparency around these impacts $1,000 (50%) $450 (25%) $275 (25%) SOURCE: Western Europe Styrene, Benzene: ICIS. Western Europe Butadiene: IHS. Styrene: W. Europe Contract Monthly Market (Delivered W. Europe); Benzene: 50% W. Europe Spot Avg (CIF NW Europe / Basis ARA) and 50% W. Europe Contract – Market (FOB/CIF W. Europe); Butadiene: W. Europe Contract-Market (Del (-09EXW) W. Europe) Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul'16 Aug'16 Sep'16 Oct'16 Nov'16 Dec'16 Jan'17 Feb'17 Mar'17 Apr'17 May'17 Jun'17 Jul'17 Aug'17 Sep'17 Europe Butadiene ($/MT) Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul'16 Aug'16 Sep'16 Oct'16 Nov'16 Dec'16 Jan'17 Feb'17 Mar'17 Apr'17 May'17 Jun'17 Jul'17 Aug'17 Sep'17 Europe Styrene & Benzene ($/MT)

6 Note: Division and Segment Adjusted EBITDA excludes Corporate Adjusted EBITDA of ($22) million. Totals may not sum due to rounding. * Includes $23 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 Q2 2017 Financial Results & Highlights Overall strong fundamental performance and business conditions Latex Binders improvement, particularly in Asia SSBR sales at record levels past 2 quarters Performance Plastics solid sales volume despite lower North America auto production Basic Plastics strong due to polystyrene restocking, Polycarbonate industry supply issues Styrene margins bottomed in May and rebounded in June Solid AmSty performance Performance Materials Net Sales: $656MM Adj EBITDA: $87MM Latex Binders Net Sales: $292MM Adj EBITDA: $36MM Synthetic Rubber Net Sales: $174MM Adj EBITDA: $28MM Performance Plastics Net Sales: $190MM Adj EBITDA: $23MM Basic Plastics & Feedstocks Net Sales: $489MM Adj EBITDA: $61MM Basic Plastics Net Sales: $382MM Adj EBITDA: $32MM Feedstocks Net Sales**: $107MM Adj EBITDA: ($1)MM Americas Styrenics Adj EBITDA: $30MM Net Income: $60MM Adj EBITDA*: $126MM EPS / Adj EPS*: $1.34 / $1.39

First Half 2017 Results 7 No net timing impact over the first half of the year Q1 and Q2 fundamentally similar results excluding net timing impacts *See Appendix for reconciliation of non-GAAP measures and definition of net timing. NOTE: Totals may not sum due to rounding. ($MM, unless noted) Q1 Q2 1st Half Net Income 117 60 177 Adjusted EBITDA* 182 126 308 Net Timing* (pre-tax) 22 (23) (0) EPS, diluted ($) 2.59 1.34 3.93 Adjusted EPS* ($) 2.42 1.39 3.82

Net sales in the second quarter increased 18% vs prior year driven primarily by the pass through of higher raw material costs Net Income and Adj EBITDA decreases vs prior year were driven primarily by pre-tax impacts of net timing (-$24 million) and lower styrene margin (-$17 million net of timing) Trinseo Q2 2017 Financial Results 8 * See Appendix for reconciliation of non-GAAP measures. Totals may not sum due to rounding. $126 $182 Q2'17 Q2'16 Adjusted EBITDA* ($MM) $1.34 $1.39 $2.00 $2.30 EPS Adj EPS* EPS ($) Q2'17 Q2'16 $1,145 $60 $970 $96 Net Sales Net Income Net Sales & Net Income ($MM) Q2'17 Q2'16

Higher Adj EBITDA vs prior year driven by stronger business fundamentals and cost management Lower YoY volume due to Brazil divestiture, destocking in North America coated paper market Latex Binders 9 $292 $232 Q2'17 Q2'16 Net Sales ($ MM) $36 $21 Q2'17 Q2'16 Adjusted EBITDA ($MM) 287 310 Q2'17 Q2'16 Volume (MM Lbs)

Record SSBR volumes in Q1 and Q2 Higher volume and better product mix increased Adj EBITDA vs prior year; more than offset by $7 million change in net timing Synthetic Rubber 10 $174 $111 Q2'17 Q2'16 Net Sales ($ MM) $28 $30 Q2'17 Q2'16 Adjusted EBITDA ($MM) 158 148 Q2'17 Q2'16 Volume (MM Lbs)

Net sales increase vs prior year driven by higher volumes in North America automotive and Asia consumer electronics Adj EBITDA YoY decline driven primarly by margin compression Performance Plastics 11 $190 $184 Q2'17 Q2'16 Net Sales ($ MM) $23 $38 Q2'17 Q2'16 Adjusted EBITDA ($MM) 148 154 Q2'17 Q2'16 Volume (MM Lbs)

Net sales increase vs prior year driven by the pass through of higher raw material costs Adj EBITDA lower than prior year driven primarily by $8 million change in net timing impacts Basic Plastics 12 $382 $363 Q2'17 Q2'16 Net Sales ($ MM) $32 $43 Q2'17 Q2'16 Adjusted EBITDA ($MM) 521 539 Q2'17 Q2'16 Volume (MM Lbs)

Adj EBITDA YoY decrease driven by lower styrene margins and $15 million change in net timing impacts As forecasted, margins bottomed in May and rebounded in June Feedstocks & Americas Styrenics 13 FEEDSTOCKS $8 million impact in Q2 sales from outage-related styrene purchases $38 million dividend received in Q2 AMERICAS STYRENICS ($1) $33 Q2'17 Q2'16 Adjusted EBITDA ($MM) $30 $38 Q2'17 Q2'16 Adjusted EBITDA ($MM)

Cash Generation 14 Year-to-Date Cash from operations of $37 million and Free Cash Flow* of negative $38 million includes over $200 million working capital outflow from raw material price increases Expect first half working capital build to reverse in the second half of the year due to falling raw material prices Total Year Currently forecasting cash from operations of ~$400 million and Free Cash Flow* of ~$240 million Cash assumptions $160 million capital expenditures $85 million taxes $75 million interest * See Appendix for reconciliation of non-GAAP measures.

 Western Europe and Asia Styrene Margin Trends Western Europe Margin (1) SM Margin over Raw Materials Q2 to Q3 ~+$45/MT Styrene Ethylene Benzene $320 $287 $294 $254 $276 $393 $323 $501 $678 $482 $233 $319 $413 $428 $330 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Asia Margin (2) SM Margin over Raw Materials Ethylene Benzene Styrene Q2 to Q3 ~+$35/MT $213 $188 $170 $190 $300 $225 $228 $270 $240 $152 $137 $241 $294 $170 $165 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 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). 15

Sequentially lower due to seasonality, Q2 restocking Q3 2017 Guidance 16 Performance Materials Synthetic Rubber Latex Binders Performance Plastics Continued strong performance driven by tighter market conditions and cost actions Includes ~$30 million of unfavorable timing impacts as well as about $5 million of growth-related costs Increased seasonal demand in consumer electronics Raw materials moderating Corporate Net Income $50MM - $58MM; Adj EBITDA* $110MM - $120MM Assumes unfavorable pre-tax timing impact of $30MM, essentially all in Synthetic Rubber Adj EBITDA* ($MM) ~$30 * See Appendix for reconciliation of non-GAAP measures Basic Plastics & Feedstocks Feedstocks Basic Plastics Americas Styrenics In line with prior guidance ~$30 ~$15 Stronger sequential performance after Q2 sales of Q1 outage-related styrene purchases ~$35 ~($22) ~($5) ~$30 Assumptions

Includes ~$10 million of unfavorable timing impacts Lower margin due to higher raw material costs Full Year 2017 Guidance 17 Performance Materials Synthetic Rubber Latex Binders Performance Plastics Includes ~$5 million of unfavorable timing impacts Includes ~$20 million of full year unfavorable timing impacts $10 million growth-related costs in second half Corporate Prior Guidance * See Appendix for reconciliation of non-GAAP measures Basic Plastics & Feedstocks Feedstocks Basic Plastics Americas Styrenics Includes minimal timing impact Includes minimal timing impact Assumes Q4 styrene margins similar to Q3 Below prior guidance due to Q2 sales of Q1 outage-related styrene purchases Net Income $294MM - $302MM; Adj EBITDA* $550MM - $560MM ~$30MM unfavorable, full-year timing impact Updated Guidance ~$130 ~$125 ~$80 ~$125 ~($95) ~$110 ~$135 ~$125 ~$90 ~$115 ~$130 ~$70 ~$120 ~($95) Assumptions

Full Year Guidance Discussion 18 * See Appendix for reconciliation of non-GAAP measures and definition of net timing. NOTE: 2nd Half assumes the midpoint of our guidance. Totals may not sum due to rounding. First half to second half profitability decrease due to net timing as well as: Growth-related impacts, lower Latex Binders and styrene margin, seasonally lower volumes Partially offset by higher AmSty equity affiliate income ($MM, unless noted) 1st Half 2nd Half FY'17 Net Income 177 120 298 Adjusted EBITDA* 308 247 555 Net Timing* (pre-tax) (0) (30) (30) EPS, diluted ($) 3.93 2.67 6.60 Adjusted EPS* ($) 3.82 2.67 6.49

Guidance Bridges 19 Net Income: $337MM - $353MM Net Income: $294MM - $302MM Lower full-year guidance driven by change in net timing expectations $600 - $620 $550 - $560 ~($55) 2017 Prior Guidance Net Timing Impacts 2017 Current Guidance Adjusted EBITDA ($ MM)

Appendix

21 Raw Material Timing / Price Lag Represents the timing of raw material cost changes flowing through COGS versus current pricing Primarily key materials such as benzene, butadiene, and bisphenol-A RAW MATERIAL TIMING PRICE LAG Represents the difference in revenue between the current contractual price and the current period price Primarily key materials in pass-through pricing agreements such as styrene and butadiene June Example: Business with 60 days inventory & 30 days price lag June COGS based on April raw material price June revenue based on May raw material price Unfavorable net timing impact as revenue basis < cost basis ILLUSTRATIVE EXAMPLE COGS Basis (60-day lag) Revenue Basis (30-day lag) Raw Material Timing Impact Price Lag Impact Source: IHS / Butadiene: W. Europe Contract-Market (Del (-09EXW) W. Europe) Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Europe Butadiene ($/MT)

22 Cumulative Net Timing Impact Raw material timing and price lag tend to offset each other in Performance Materials Basic Plastics & Feedstocks typically impacted only by raw material timing $(42) $29 $(28) $(17) $(10) $13 $7 $20 $71 $(40) $34 $(10) $4 $17 $5 $(12) $(2) $(6) $(49) $17 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Quarterly Raw Material Timing Quarterly Price Lag Cumulative Raw Material Timing Cumulative Price Lag $MM: Favorable / (Unfavorable)

Butadiene Price History 23 Source: IHS / Butadiene: W. Europe Contract-Market (Del (-09EXW) W. Europe) - 4,000 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Europe Butadiene ($/MT)

 US GAAP to Non-GAAP Reconciliation Profitability Guidance CURRENT GUIDANCE (1) PRIOR GUIDANCE Three Months Ended Year Ended Year Ended (In $millions, unless noted) Sep 30, 2017 Dec 31, 2017 Dec 31, 2017 Adjusted EBITDA 110 - 120 550 - 560 600 - 620 Interest expense, net (19) (74) (74) Provision for income taxes (16) - (18) (87) - (89) (97) - (101) Depreciation and amortization (25) (101) (100) Reconciling items to Adjusted EBITDA -- 6 8 Net Income 50 - 58 294 - 302 337 - 353 Reconciling items to Net Income -- (5) (8) Adjusted Net Income 50 - 58 288 - 296 329 - 345 Weighted avg shares - diluted (MM) 45.0 45.1 45.3 Adjusted EPS ($) 1.10 - 1.28 6.40 - 6.58 7.26 - 7.61 Free Cash Flow Three Months Ended Six Months Ended CURRENT GUIDANCE (1) Twelve Months Ended (In $millions) Jun 30, 2017 Jun 30, 2016 Jun 30, 2017 Jun 30, 2016 31-Dec-17 Cash provided by operating activities 62.3 94.8 36.6 179.7 400 Capital expenditures (38.2) (26.7) (74.3) (53.2) (160) Free Cash Flow 24.1 68.1 (37.7) 126.5 240 (1) Our current guidance does not include any estimates regarding the impact of potential refinancing activities on our future financial results. 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, July 2, 2017. Totals may not sum due to rounding. 24

 (in $millions, unless noted) Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 2014 2015 2016 Net Income (Loss) 37.7 0.8 52.1 43.1 76.7 95.8 67.3 78.5 117.3 60.2 (67.3) 133.6 318.3 Interest expense, net 28.9 25.6 19.5 19.3 18.9 18.8 18.8 18.4 18.2 18.7 124.9 93.2 75.0 Provision for (benefit from) income taxes 17.9 7.5 21.2 23.6 21.9 28.6 16.0 20.5 29.3 18.8 19.7 70.2 87.0 Depreciation and amortization 22.5 21.7 23.0 29.5 23.2 24.9 23.8 24.7 24.7 26.3 103.7 96.8 96.4 EBITDA 107.0 55.6 115.8 115.5 140.7 168.1 125.9 142.1 189.5 124.0 181.0 393.8 576.7 Loss on extinguishment of long-term debt - 95.2 - - - - - - - - 7.4 95.2 - Other items 1.3 0.6 0.3 - 1.8 0.3 0.3 (6.8) - 1.1 38.4 2.2 (4.4) Restructuring and other charges 0.5 (0.1) 0.1 0.2 0.7 1.1 16.8 4.9 2.1 1.1 10.0 0.8 23.5 Net (gains) / losses on dispositions of businesses and assets - - - - - 12.9 0.3 1.8 (9.9) - (0.6) - 15.1 Fees paid pursuant to advisory agreement - - - - - - - - - - 25.4 - - Adjusted EBITDA 108.8 151.3 116.2 115.7 143.2 182.4 143.3 142.0 181.7 126.2 261.6 492.0 610.9 Adjusted EBITDA to Adjusted Net Income Adjusted EBITDA 108.8 151.3 116.2 115.7 143.2 182.4 143.3 142.0 181.7 126.2 261.6 492.0 610.9 Interest expense, net 28.9 25.6 19.5 19.3 18.9 18.8 18.8 18.4 18.2 18.7 124.9 93.2 75.0 Provision for (benefit from) income taxes - Adjusted 18.3 25.5 22.3 18.7 22.4 28.8 21.4 22.0 29.5 19.2 29.4 84.9 94.6 Depreciation and amortization - Adjusted 22.3 21.6 22.1 23.4 22.6 24.9 23.3 24.7 24.2 25.8 99.6 89.3 95.4 Adjusted Net Income 39.3 78.6 52.3 54.3 79.3 109.9 79.8 76.9 109.8 62.5 7.7 224.6 345.9 Wtd Avg Shares - Diluted (000) 48,851 48,907 48,989 49,067 49,086 47,857 46,961 45,754 45,313 44,995 43,476 48,970 47,478 Adjusted EPS - Diluted ($) 0.80 1.61 1.07 1.11 1.62 2.30 1.70 1.68 2.42 1.39 0.18 4.59 7.28 Adjustments b y Statement of Operations Caption Loss on extinguishment of long-term debt - 95.2 - - - - - - - - 7.4 95.2 - Selling, general and administrative expenses 1.8 0.5 0.4 0.2 2.5 1.4 17.1 4.9 2.1 2.2 41.3 3.0 25.9 Other expense (income), net - - - - - 12.9 0.3 (5.0) (9.9) - 31.9 - 8.3 Total EBITDA Adjustments 1.8 95.7 0.4 0.2 2.5 14.3 17.4 (0.1) (7.8) 2.2 80.6 98.2 34.2 Free Cash Flow Reconciliation Cash provided by operating activities 84.9 94.8 145.0 79.0 (25.7) 62.3 117.2 353.2 403.7 Capital expenditures (26.4) (26.7) (29.5) (41.2) (36.0) (38.2) (98.6) (109.3) (123.9) Free Cash Flow 58.4 68.1 115.5 37.8 (61.7) 24.1 18.6 243.9 279.8

Selected Segment Information 26 NOTE: Totals may not sum due to rounding. (in $millions, unless noted) Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 2014 2015 2016 Q2'17 LTM1H'17 Latex Binders 305 312 307 308 299 310 318 309 301 287 1,193 1,233 1,236 1,214 587 Synthetic Rubber 162 153 152 134 146 148 150 159 179 158 568 601 604 645 336 Performance Plastics 150 150 144 146 143 154 145 137 155 148 581 590 579 585 303 Performance Materials 617 616 603 588 588 613 613 604 634 592 2,342 2,423 2,419 2,444 1,227 Basic Plastics 585 557 493 525 570 539 504 506 500 521 2,174 2,160 2,118 2,031 1,021 Feedstocks 209 151231 165 194 195 207 163 168 238 693 755 759 776 406 Basic Plastics & Feedstocks 793 708 724 690 764 734 711 669 668 760 2,867 2,915 2,877 2,807 1,427 Trade Volume (MMLbs) 1,411 1,323 1,327 1,277 1,352 1,347 1,324 1,273 1,302 1,352 5,210 5,339 5,296 5,251 2,654 Latex Binders 238 248 255 226 209 232 243 241 289 292 1,261 966 925 1,064 580 Synthetic Rubber 129 115 126 104 102 111 113124 163 174 634 475 451 574 337 Performance Plastics 197 185 180 181 169 184 175 166 185 190 821 743 693 716 375 Performance Materials 565 548 561 510 480 528 531 531 637 656 2,716 2,184 2,069 2,354 1,293 Basic Plastics 375 411 364 327 343 363 324 323 381 382 1,978 1,478 1, 353 1,410 763 Feedstocks78 69 10 36 07 17 98 16 487 107 434 310 294 339 194 Basic Plastics & Feedstocks 454 480 467 387 414 442 405 387 468 489 2,412 1,788 1,647 1,749957 Net Sales 1,018 1,029 1,028897894970935917 1,104 1,145 5, 1283,972 3,717 4,1032,250 Latex Binders 21 15 24 18 19 21 30 24 37 36 97 79 94 127 73 Synthetic Rubber 26 18 27 21 23 30 28 29 46 28 137 93 111 132 74 Performance Plastics 30 28 20 30 35 38 30 32 27 23 85 108 136 113 50 Performance Materials 77 61 72 69 77 90 88 86 110 87 320 280 341 372 197 Basic Plastics 14 39 25 37 38 43 34 33 39 32 (15) 116 148 138 71 Feedstocks 5 35 73 21 33 13 14 42 (1) (21) 51 80 68 41 Americas Styrenics 35 41 32 27 33 38 34 31 18 30 50 13 51 36 114 48 Basic Plastics & Feedstocks 55 115 65 67 92 113 81 78 99 61 15 302 364 319 160 Corporate (23) (25) (21) (20) (25) (21) (26) (22) (27) (22) (73) (90) (95) (97) (49) Adjusted EBITDA 109 151 116 116 143 182 143 142 182 126 262 492 611 593 308 Adj EBITDA Variance AnalysisNet Timing* Impacts - Fav/ (Unfav) Latex Binders 6 (5) 02 (0) (4) 22 (8) 104 (0) (3) (7) Synthetic Rubber (6) 11 (1) (4) 31616 (4) (0) (5) 61912 Performance Plastics111 (3) 54 (4) (1) 0 (9) (2) (3) 15 (0) (11) (10) Performance Materials12 (3) (2) 7 (0) (5) 28 (0) (5) (3) 14 55 (5) Basic Plastics (12) 10 (9) (4) (3) 21111 (6) (24) (15) 275 Feedstocks (8) 12 (13) (3) (2) 41411 (11) (24) (13) 750 Basic Plastics & Feedstocks (20) 22 (22) (7) (4) 63522 (17) (47) (27) 9135 Net Timing* Impacts - Fav/ (Unfav) (9) 19 (24) (0) (4) 05 14 22 (23) (50) (14) 1518 (0) *Net Timing is the difference between Raw Material Timing and Price Lag. Raw Material Timing represents the timing of raw material cost changes flowing through cost of goods soldversus current pricing. Price Lag represents the difference in revenue between the current contractual price and the current period price.