Business Segments and Sales - Trinseo PLC operates under four reportable segments: Engineered Materials, Latex Binders, Polymer Solutions, and Americas Styrenics as of December 31, 2024[34]. - In 2024, approximately 36% of total Engineered Materials net sales were generated in Europe, 45% in the United States, and 12% in Asia[39]. - The Engineered Materials segment's sustainable products represented 4% of its volume in 2024, indicating a core growth area[41]. - The Latex Binders segment holds the 1 position in SB latex capacity in North America and a Top 3 position in Europe, with 43% of sales generated in Europe and 31% in the United States in 2024[52]. - The Polymer Solutions segment generated approximately 48% of net sales in Europe, 28% in North America, and the remainder primarily in Asia in 2024[60]. - Copolymers, including ABS and SAN, represented approximately 41% of total net sales in the Polymer Solutions segment in 2024[61]. - In 2024, Americas Styrenics was the 1 producer of polystyrene in North America, supplying 18% of the styrene monomer capacity in the region[76]. - In 2024, net sales to CASE applications accounted for approximately 14% of total Latex Binders net sales, with margins about two times the average of products in the segment[55]. Sustainability Initiatives - Trinseo announced the opening of a PMMA depolymerization plant in Rho, Italy in June 2024, enhancing its sustainability goals[26]. - The company continues to invest in differentiated and sustainable product offerings, particularly in the compounding business segments and CASE applications[25]. - The company continued its recycled polystyrene efforts in 2024, including offering recycled polystyrene for food packaging applications[70]. - The company announced the opening of a PMMA depolymerization pilot facility in Rho, Italy, in June 2024, which produces high-purity regenerated MMA[114]. - The company started two more recycling demo/pilot plants in 2024, one in Terneuzen, Netherlands, for ABS dissolution technology and one in Rho, Italy, for PMMA depolymerization technology[114]. Financial Performance and Strategy - Trinseo's restructuring initiatives include product line shutdowns and workforce reductions aimed at improving profitability and cash flow generation[27]. - Trinseo maintains a disciplined approach to capital allocation, prioritizing debt servicing, targeted growth initiatives, and shareholder returns[31]. - The contribution to equity earnings from Americas Styrenics' polystyrene business was approximately 229% in 2024, up from 88% in 2023 and 71% in 2022[76]. - The company has received dividends of $45.0 million from its Americas Styrenics joint venture for the year ended December 31, 2024[169]. - The divestiture of the styrenics business is a key part of the company's transformation strategy, but the timing and success of this process remain uncertain[167]. Workforce and Corporate Governance - As of December 31, 2024, the company had approximately 2,950 employees worldwide, with 57% in the EMEA region, 26% in the Americas, and the remainder in Asia Pacific[124]. - Approximately 97% of the company's workforce is full-time, with nearly 70% located at manufacturing and R&D sites[125]. - The company has a commitment to equity and inclusion, with 36% of its Board and 33% of its executive leadership team being women[131]. - The company has conducted internal reviews to ensure equitable compensation practices across all jurisdictions where it operates[133]. Risks and Challenges - The company is subject to various risks, including volatility in raw material costs and the impact of global trade conflicts on its operations[139]. - Principal raw materials (butadiene, MMA, and styrene) account for approximately 48% of the total cost of goods sold, making volatility in their prices a significant concern for financial results[149]. - Increased energy costs and supply constraints, particularly due to the ongoing conflict in Ukraine, could adversely impact the company's operations and financial results[152]. - The company faces risks related to the integration of acquired businesses, which may not yield the anticipated benefits or synergies[170]. - The company is subject to numerous regulations that could increase costs and impact its operations if violated[174]. Legal and Compliance - The company has ongoing legal proceedings that could incur significant costs and divert management resources, potentially impacting financial condition and cash flows[197]. - The company is subject to covenants in its credit agreements that may restrict its ability to operate and take advantage of business opportunities[195]. - The company must meet a minimum liquidity test under its 2028 Refinance Credit Agreement and other facilities, which is dependent on future performance and general economic conditions[195]. Technology and Innovation - The company acknowledges that technological innovation and successful product development are critical for maintaining competitive advantage and profit margins[164]. - Cybersecurity incidents could compromise confidential information and negatively impact operations and reputation, leading to potential financial repercussions[210]. - The implementation of a new enterprise resource planning system has been paused, which could disrupt operations and affect financial reporting[211].

Financial Data and Key Metrics Changes - The company reported a full-year adjusted EBITDA improvement of $50 million, despite macroeconomic challenges such as geopolitical uncertainty and high inflation [12][19] - Fourth quarter adjusted EBITDA was $26 million, which was $6 million higher than the prior year, but negatively impacted by unfavorable net timing effects [25][19] - Cash provided by operations during the fourth quarter was $85 million, resulting in free cash flow of $64 million, marking the highest quarter of free cash flow generation in over two years [26][20] Business Line Data and Key Metrics Changes - Sales of recycled content products increased by 47% year-over-year, now representing 4% of total company variable margin in 2024 [15] - Engineered Materials segment saw a 3% increase in PMMA Resins sales volumes year-over-year, despite weak end market demand [15] - The Polymer Solutions segment faced significant negative timing impacts due to falling raw material prices, particularly styrene [25][19] Market Data and Key Metrics Changes - The company noted a significant decline in consumer confidence across major markets, particularly in Europe and China, affecting end markets such as automotive and construction [12] - The company anticipates a compound annual demand growth of at least 7% in target end markets through the end of the decade, particularly in India [18] Company Strategy and Development Direction - The company is focused on executing self-help actions and transformation strategies to navigate macroeconomic challenges [12] - Significant advancements in circular technologies were highlighted, including the commissioning of pilot facilities for polycarbonate and PMMA [16] - The company is pursuing a strategic partnership with Deepak Nitrite Limited, viewing India as a significant growth market [17][18] Management's Comments on Operating Environment and Future Outlook - Management does not anticipate meaningful demand recovery in major end markets in 2025, citing ongoing geopolitical issues [27] - The first quarter of 2025 is expected to be sequentially better than Q4, with anticipated adjusted EBITDA of $60 million to $80 million, including a one-time contribution from the licensing agreement [29] - Management expressed confidence in the actions taken over the past two years to position the company for eventual market recovery [30] Other Important Information - The company has restructured its reporting segments to better reflect its operational strategy [22] - A transaction was closed in January that increased available liquidity by approximately $150 million and extended debt maturity to 2028 [24] Q&A Session Summary Question: Follow-up on cash spends for 2025 - Management indicated that the increase in cash expenditures is primarily due to working capital changes and higher cash taxes resulting from increased profitability [33][36] Question: Impact of lower styrene pricing on profitability - Management explained that pricing on styrene-containing products is generally indexed, leading to a pass-through effect on profitability [39][40] Question: Guidance for Q1 and potential destocking - Management noted that they do not foresee significant destocking initiatives from customers and that demand in automotive is more related to consumer confidence than inventory levels [81][82] Question: Status of the AmSty sale process - Management clarified that the sale process is not halted but is being timed to optimize value [122] Question: Insights on the recycling platform and margins - Management reported that recycled products are seeing significant demand and margins are substantially higher than virgin products [75][76]

Fourth Quarter 2024 Financial Results & First Quarter 2025 Outlook February 12, 2025 1 Trademark of Trinseo PLC or its affiliates Introductions & Disclosure Rules Introductions • Bee van Kessel, Senior Vice President, Corporate Finance & Investor Relations Disclosure Rules This presentation may contain forward-looking statements including, without limitation, statements concerning plans, objectives, goals, projections, forecasts, strategies, future events or performance, and underlying assumptions and other ...

Financial Performance - Fourth quarter 2024 net sales were $821 million, a decrease of 2% compared to the prior year, driven by lower sales volumes across all business segments [5]. - The net loss for the fourth quarter was $118 million, an improvement of $147 million year-over-year, primarily due to a lower provision for income taxes [6]. - Adjusted EBITDA for the fourth quarter was $26 million, which was $6 million higher than the previous year despite a $10 million unfavorable net timing variance [6]. - Full-year 2024 net sales totaled $3.5 billion, reflecting a 4% decrease compared to 2023, with lower sales volumes contributing to a 6% decline [7]. - The full-year net loss was $349 million, which was $352 million better than the prior year, mainly due to a significant goodwill impairment charge recorded in 2023 [7]. - Gross profit for Q4 2024 was $56.0 million, significantly up from $20.3 million in Q4 2023, reflecting a gross margin improvement [34]. - Net loss for the year ended December 31, 2024, was $348.5 million, compared to a net loss of $701.3 million for the year ended December 31, 2023, indicating a 50.3% reduction in losses [34]. - Adjusted EBITDA for the year ended December 31, 2024, was $203.7 million, up from $154.3 million in 2023, representing a 32% increase [34]. - Adjusted EPS for the year ended December 31, 2024, was $(7.71), compared to $(6.92) for the year ended December 31, 2023 [34]. Cash Flow and Liquidity - Free Cash Flow for the fourth quarter was $64 million, marking a sequential and year-over-year improvement of $67 million [4]. - Free Cash Flow for the year ended December 31, 2024, was $63.9 million, compared to $(3.1) million in 2023 [40]. - Cash provided by operating activities for the year ended December 31, 2024, was $148.7 million, an increase from $(14.2) million in 2023 [40]. - Cash and cash equivalents at the end of Q4 2024 were $209.8 million, down from $259.1 million at the end of Q4 2023 [27]. - The company emphasizes that Free Cash Flow is a non-GAAP measure and may differ from other companies' definitions [38]. Future Outlook - For the first quarter of 2025, the company expects a net loss between $55 million and $40 million and Adjusted EBITDA of $65 million to $80 million, including approximately $26 million from the polycarbonate technology license agreement [11]. - Trinseo anticipates seasonally higher volumes in the first quarter but expects year-over-year volume declines due to ongoing weakness in certain end markets [10]. - Adjusted EBITDA for the three months ended March 31, 2025, is projected to be between $60 million and $80 million [36]. - Net Loss from continuing operations is estimated to be between $(60) million and $(40) million for the same period [36]. - Adjusted EPS is expected to range from $(1.68) to $(1.12) for the first quarter of 2025 [36]. Operational Changes - The company agreed to sell its polycarbonate manufacturing assets in Stade, Germany, and license polycarbonate technology to Deepak Chem Tech Limited for $52 million [4]. - The company has executed numerous initiatives to exit loss-generating businesses and improve liquidity and debt maturity profile [4]. Shareholder Information - The company’s weighted average shares outstanding for Q4 2024 were 35.4 million, slightly up from 35.2 million in Q4 2023 [34]. - The weighted average shares for diluted EPS calculation is 35.7 million [36]. - Future share transactions or events that could impact EPS calculations are not included in the forecast [41]. - The company does not forecast reconciling items to Adjusted EBITDA and Adjusted Net Income due to their nature [41].

Core Viewpoint - Trinseo PLC's shares increased by 37% following the announcement of a Transaction Support Agreement aimed at restructuring its debt and extending maturities, which will support its strategic initiatives in specialty materials and sustainable solutions [1] Debt Restructuring Details - The Transaction Support Agreement involves creditors supporting refinancing transactions to enhance liquidity and extend the nearest debt maturity to 2028 [2] - Trinseo plans to redeem and refinance $115 million of 2025 Senior Notes with new $115 million 2028 Refinance Term Loans, alongside establishing a new $300 million revolving credit facility maturing in February 2028 [3] Financial Flexibility and Cost Savings - The company will exchange at least $330 million of 2029 Senior Notes for new 2029 Second Lien Senior Secured Notes at a discount, capturing at least $49 million in discounts from creditors [4] - Trinseo anticipates annual savings of $30 million from business consolidation, with $25 million expected in 2025 and full benefits realized by 2026 [6] Structural Changes - Starting October 1, 2024, Trinseo will consolidate its Engineered Materials, Plastics Solutions, and Polystyrene businesses, leading to workforce reductions [5] - The company will discontinue virgin polycarbonate production at its Stade, Germany facility by January 2025, improving yearly run rate profitability by $15-20 million [6] One-Time Costs - The restructuring will incur one-time costs between $23-28 million, primarily for severance packages and asset termination fees related to the Stade facility [7] Financial Position - As of September 30, 2024, Trinseo had $167 million in cash and $177 million in additional liquidity, with long-term debt amounting to $2.19 billion [8] Stock Performance - Over the past year, Trinseo's shares have decreased by 5.6%, slightly outperforming the industry decline of 5.7% [9]

TRINSEO. Third Quarter 2024 Financial Results & Fourth Quarter Outlook November 6, 2024 1 Trademark of Trinseo PLC or its affiliates Introductions & Disclosure Rules Introductions • Frank Bozich, President & CEO • David Stasse, Executive Vice President & CFO • Bee van Kessel, Senior Vice President, Corporate Finance & Investor Relations Disclosure Rules This presentation may contain forward-looking statements including, without limitation, statements concerning plans, objectives, goals, projections, forecas ...

Financial Data and Key Metrics Changes - The third quarter adjusted EBITDA was $66 million, which is $25 million higher than the prior year and similar to the second quarter [20] - Cash provided by operations during the quarter was $9 million, resulting in free cash flow of negative $3 million, with an expected positive free cash flow in Q4 [21][22] - The company ended the third quarter with $165 million in cash and $342 million in total liquidity [22] Business Line Data and Key Metrics Changes - Volumes decreased by 8% year-over-year, primarily due to efforts to eliminate uneconomic sales in Asia and Europe [13] - Excluding polystyrene, volumes were flat compared to the prior year, with a 36% increase in compounds for consumer electronics applications and a 7% increase in case and battery applications in latex binders [14] - Sales of recycled content products increased by 40% year-over-year, representing 6% of total company margin in Q3 [15] Market Data and Key Metrics Changes - Demand remained weak in end markets such as building and construction and consumer durables, but profitability improved due to restructuring actions [11] - The company anticipates seasonally slower market demand in Q4, with expected adjusted EBITDA of $40 million to $50 million [23][24] Company Strategy and Development Direction - The company announced additional restructuring initiatives to improve its footprint and cost structure, aiming for cost savings of approximately $25 million in 2025 and $30 million by the end of 2026 [18] - The decision to exit virgin polycarbonate production is expected to increase annual profitability by $15 million to $20 million [19] - The company remains committed to developing polycarbonate dissolution technology to replace external purchases with recycled polycarbonate [19] Management's Comments on Operating Environment and Future Outlook - Management expects a more challenging Q4 due to year-end seasonality and macroeconomic uncertainty, but anticipates stronger liquidity position by year-end [25] - Customers are generally optimistic about Q1, expecting modest improvement in demand, particularly in building and construction due to easing interest rates [40][42] Other Important Information - The company experienced unplanned outages at two production facilities, negatively impacting adjusted EBITDA [12] - The restructuring costs for 2024 are expected to be around $45 million, with a similar expectation for 2025 [36] Q&A Session Summary Question: Update on the AmSty sales process and unplanned outages - Management confirmed that the unplanned outages are resolved and full contribution from AmSty is expected in Q4, with a transaction expected in the first half of next year [27] Question: Financing and revolver extension - The plan is to use cash on hand or a refinancing transaction to handle the $115 million stub notes due in September next year [28] Question: Q4 guidance and demand expectations - Management explained that the expected decline in Q4 adjusted EBITDA is due to fixed cost absorption and lighter demand from seasonality [32][34] Question: 2025 free cash flow outlook - Restructuring costs are expected to remain similar in 2025, with cash interest potentially lower due to an easing cycle [38] Question: Customer demand outlook for next year - Customers anticipate a stronger Q1, with pent-up demand expected in building and construction due to easing interest rates [40][42]

Financial Performance - Trinseo reported a net loss of $87.3 million for Q3 2024, compared to a net loss of $38.4 million in Q3 2023, and a year-to-date net loss of $230.6 million versus $436.3 million in the same period last year[106][111]. - Adjusted EBITDA for Q3 2024 was $66.1 million, showing improvement across all segments except Americas Styrenics, driven by restructuring initiatives and improved product mix[106]. - Net sales for Q3 2024 decreased by 1% year-over-year to $867.7 million, primarily due to an 8% reduction in volumes from low-margin businesses, partially offset by a 7% increase in pricing[112]. - Adjusted EBITDA for the three months ended September 30, 2024, was $4.0 million, a decrease of 79% compared to $19.0 million for the same period in 2023[151]. - For the nine months ended September 30, 2024, Adjusted EBITDA was $25.8 million, down 47% from $49.1 million in the prior year[151]. - The decrease in Adjusted EBITDA was primarily due to an unplanned outage at the styrene production facility and lower styrene margins[152]. Cost and Expenses - Cost of sales decreased by 7% in Q3 2024, attributed to lower sales volumes and reduced utility costs, despite a 6% increase in raw material costs[113]. - Gross profit increased by $49.3 million in Q3 2024, mainly due to higher pricing across all segments and prior year impacts from natural gas hedges[114]. - Selling, general and administrative expenses rose by $30.4 million, or 46%, primarily due to increased restructuring costs related to the 2024 Restructuring Plan[115]. - Interest expense increased by $25.7 million, or 55%, due to rising market interest rates on variable rate debt and the execution of a payment-in-kind interest election[118][127]. Restructuring and Future Plans - The 2024 Restructuring Plan is expected to deliver annualized profitability improvements of approximately $45.0 million to $50.0 million starting in 2026[107]. - The company is exploring the divestiture of its interest in Americas Styrenics, with a definitive agreement expected in the first half of 2025[109]. - The company anticipates that profitability improvement initiatives will allow it to maintain adequate liquidity and deliver improved results in the future[131]. Cash Flow and Liquidity - Net cash used in operating activities for the nine months ended September 30, 2024, was $99.3 million, compared to a cash inflow of $131.2 million in the same period of 2023[159]. - Free Cash Flow for the nine months ended September 30, 2024, was $(141.4) million, a decline from $82.1 million in the prior year[165]. - The company had liquidity of $340.3 million as of September 30, 2024, consisting of $163.1 million in cash and cash equivalents and $177.2 million available for borrowing[168]. - The company reported a net cash change of $(93.5) million for the nine months ended September 30, 2024, compared to a positive change of $66.9 million in the prior year[158]. Debt and Financing - As of September 30, 2024, total debt amounted to $2,438.0 million, with interest expenses of $202.5 million[169]. - The 2028 Refinance Term Loans had an original principal of $1,077.3 million, maturing in May 2028, with a stated interest rate of SOFR plus 8.50%[171]. - The first lien net leverage ratio was 6.46x as of September 30, 2024, exceeding the required maximum of 3.50x[171]. - The company executed a PIK Interest Election on the 2028 Refinance Term Loans, deferring $10.5 million of interest margin payable, capitalizing $13.0 million to principal payments due at maturity[171]. - The company is in compliance with all covenants and default provisions under its debt agreements as of September 30, 2024[173]. Segment Performance - Adjusted EBITDA for the Engineered Materials segment increased by 1,012% to $54.5 million for the nine months ended September 30, 2024, driven by higher sales volumes and improved margins[134]. - Net sales for the Latex Binders segment increased by 8% to $241.9 million for the three months ended September 30, 2024, primarily due to higher prices from raw material cost pass-through[139]. - Adjusted EBITDA for the Plastics Solutions segment increased by 64% to $27.7 million for the three months ended September 30, 2024, attributed to higher margins and lower fixed costs[144]. - Net sales for the Polystyrene segment decreased by 28% to $150.6 million for the three months ended September 30, 2024, primarily due to a 35% decrease in sales volumes[147]. Dividends - The company declared dividends of $0.01 per ordinary share, totaling $0.3 million, accrued as of September 30, 2024[173].

Financial Performance - Trinseo reported a quarterly loss of $1.62 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.39, and compared to a loss of $1.03 per share a year ago, indicating a significant decline in performance [1] - The company posted revenues of $867.7 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.47%, but down from $879 million in the same quarter last year [2] - Over the last four quarters, Trinseo has surpassed consensus EPS estimates only once, and has topped consensus revenue estimates two times [2] Stock Performance and Outlook - Trinseo shares have declined approximately 49.1% since the beginning of the year, contrasting sharply with the S&P 500's gain of 21.2% [3] - The current consensus EPS estimate for the upcoming quarter is -$2.56 on revenues of $822.24 million, and for the current fiscal year, it is -$6.73 on revenues of $3.55 billion [7] Industry Context - The Rubber - Plastics industry, to which Trinseo belongs, is currently ranked in the top 40% of over 250 Zacks industries, suggesting a relatively strong position within the market [8]

Financial Performance - Net sales for Q3 2024 were $868 million, a 1% decrease compared to the prior year, driven by an 8% decrease in sales volumes offset by a 7% increase in prices due to higher raw material costs[3]. - The net loss for Q3 2024 was $87 million, worsening by $49 million from the prior year, primarily due to increased interest, tax, and restructuring expenses[3]. - Adjusted EBITDA for Q3 2024 was $66 million, which is $25 million higher than the previous year, reflecting improved results across most business segments[3]. - Net sales for the three months ended September 30, 2024, were $867.7 million, a decrease of 1.5% from $879.0 million in the same period of 2023[16]. - Gross profit for the three months ended September 30, 2024, was $80.6 million, significantly up from $31.3 million in the prior year, reflecting a gross margin improvement[16]. - Net loss for the nine months ended September 30, 2024, was $230.6 million, compared to a net loss of $436.3 million for the same period in 2023[16]. - Total net sales for the nine months ended September 30, 2024, were $2,691.7 million, down from $2,837.9 million in the prior year[19]. - Adjusted Net Loss for September 2024 was $(57.5) million, compared to $(36.3) million in September 2023, marking a 58% increase in adjusted losses[21]. Cash Flow and Capital Expenditures - Free Cash Flow for Q3 2024 was negative $3 million, showing a sequential improvement of $53 million, aided by a $16 million decrease in trade working capital[1]. - Cash provided by operating activities for the nine months ended September 30, 2024, was $(99.3) million, a decline from $131.2 million in the same period of 2023[18]. - Free Cash Flow for the three months ended September 2024 was $(3.4) million, a decrease from $15.8 million in the same period of 2023[25]. - Capital expenditures for the three months ended September 2024 were $(12.2) million, slightly down from $(13.5) million in the same period of 2023[25]. Segment Performance - Engineered Materials segment reported net sales of $207 million, a 12% increase year-over-year, driven by higher sales volumes and prices[4]. - Latex Binders segment net sales were $242 million, an 8% increase, with a 12% impact from higher prices offsetting a 4% decrease in volumes[4]. - Polystyrene segment net sales decreased by 28% to $151 million, primarily due to a 35% drop in sales volume[4]. - Americas Styrenics Adjusted EBITDA was $4 million, down $15 million from the prior year due to unplanned outages and lower styrene margins[4]. Future Projections - The company expects a net loss of between $81 million and $71 million for Q4 2024, with Adjusted EBITDA projected to be between $40 million and $50 million[5]. - Forecasted Adjusted EBITDA for the three months ending December 31, 2024, is projected to be between $40 million and $50 million[23]. Restructuring and Cost Savings - Restructuring initiatives are anticipated to yield cost savings of $25 million in 2025 and full run rate savings of $30 million by the end of 2026[1]. Balance Sheet and Liabilities - Total assets decreased to $2,882.8 million as of September 30, 2024, down from $3,029.2 million at the end of 2023[17]. - Current liabilities increased to $814.2 million as of September 30, 2024, compared to $672.6 million at the end of 2023[17]. - The company experienced a significant increase in inventories, rising to $434.8 million as of September 30, 2024, from $404.7 million at the end of 2023[17]. Interest and Expenses - Interest expense for the three months ended September 30, 2024, was $72.3 million, compared to $46.6 million in the same period of 2023, indicating increased borrowing costs[16]. - Interest expense, net for September 2024 increased to $72.3 million from $46.6 million in September 2023, reflecting a 55% rise[21]. - Depreciation and amortization for September 2024 was $48.3 million, compared to $38.2 million in September 2023, reflecting a 26% increase[21].