Trinseo PLC · OTC:TSEOQ
Trinseo — Q2 2019 Earnings Presentation
15 slides from Trinseo's earnings presentation, Aug 8, 2019
Slide 1: Second Quarter 2019 Financial Results
1 ™ Trademark of Trinseo S.A. or its affiliates ™ Trademark of Trinseo S.A. or its affiliates August 8, 2019 Second Quarter 2019 Financial Results
Slide 2: Disclosure Rules: Cautionary Note on Forward-Looking Statements
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 statement
Slide 3: Highlights
3 *See Appendix for a reconciliation of non-GAAP measures. Highlights • Continued challenging macroeconomic environment impacting most segments; Boehlen styrene outage unfavorable impact of $12 million • Strong performance in Polystyrene and Americas Styrenics, sequential improvement in Latex Binder
Slide 4: Sustainability and CSR Highlights
4 Products & Innovations Safety Corporate Citizenship • Trinseo is top decile performer •Injury rate was 0.21, per 200,000 hours worked* • Safety policy includes both employees and contractors in injury count, unlike many peers. • Trinseo employees spent nearly 2,400 hours supporting local organizat
Slide 5: Trinseo Q2 2019 Financial Results
5 • Price decline due mainly to the pass-through of lower styrene and butadiene costs • Decline in earnings versus prior year due to lower volumes and margins across several segments from market weakness including the global automotive and tire markets, exacerbated by the continued economic slowdown
Slide 6: Latex Binders
6 • Lower net sales due to lower raw material pass-through and pricing pressure • Adjusted EBITDA lower than prior year due to margin compression from market competitiveness and net timing impacts Latex Binders $230 $281 Q2'19 Q2'18 Net Sales ($MM) $21 $36 Q2'19 Q2'18 Adjusted EBITDA ($MM) 128 131 Q
Slide 7: Synthetic Rubber
7 • Lower volume in ESBR and, to a lesser extent, SSBR caused by slowdown in auto production globally and weakness in Europe and Asia replacement tire markets • Continued margin pressure in ESBR from market weakness, particularly in China Synthetic Rubber $112 $155 Q2'19 Q2'18 Net Sales ($MM) $13 $3
Slide 8: Performance Plastics
8 • Lower net sales from raw material pass-through and continued pricing pressure in polycarbonate • Adjusted EBITDA below prior year due to lower polycarbonate and ABS margins driven primarily by weak China demand Performance Plastics $347 $413 Q2'19 Q2'18 Net Sales ($MM) $34 $49 Q2'19 Q2'18 Adjust
Slide 9: Polystyrene
9 • Lower volume versus prior year due to customer restocking in Q2 2018 versus customer destocking in Q2 2019 • Adjusted EBITDA higher versus prior year due to business excellence initiatives Polystyrene $207 $286 Q2'19 Q2'18 Net Sales ($MM) $16 $14 Q2'19 Q2'18 Adjusted EBITDA ($MM) 149 173 Q2'19 Q
Slide 10: Feedstocks & Americas Styrenics
10 • Lower industry styrene margins versus 2018 from weaker market conditions and a lower level of industry unplanned outages • Boehlen outage resulted in an unfavorable $12 million impact; resumed operations at end of July Feedstocks & Americas Styrenics ($1) $32 Q2'19 Q2'18 Adjusted EBITDA ($MM) F
Slide 11: Q3 and Full Year 2019 Outlook
11 Q3 and Full Year 2019 Outlook Q3 2019 – Similar business environment to Q1 and Q2 • Higher expected Feedstocks EBITDA versus Q2 due to the restart of Boehlen, Germany styrene plant at the end of July, partially offset by lower styrene margins • Lower expected equity affiliate income from Americas
Slide 12: Appendix
& TRINSEO. Appendix
Slide 13: US GAAP to Non-GAAP Reconciliation
13 US GAAP to Non-GAAP Reconciliation NOTE: For definitions of non-GAAP measures refer to the accompanying Exhibit 99.1 – Press Release, August 8, 2019. Totals may not sum due to rounding. Profitability Outlook Year Ended (In $millions, unless noted) Dec 31, 2019 Adjusted EBITDA 410 - 450 Interest e
Slide 14: US GAAP to Non-GAAP Reconciliation
14 US GAAP to Non-GAAP Reconciliation NOTE: For definitions of non-GAAP measures as well as descriptions of current period reconciling items from Net Income to Adjusted EBITDA and to Adjusted Net Income, refer to the Company’s Form 8-K filed on August 8, 2019. Totals may not sum due to rounding. (in
Slide 15: Selected Segment Information
15 Selected Segment Information * See this Appendix for a reconciliation of non-GAAP measures. NOTE: Totals may not sum due to rounding. (in $millions, unless noted) Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1 '19 Q2 '19 2016 2017 2018 Latex Binders 136 141 144 140 136