トリンセオの適時開示・決算・その他

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): May 4, 2023

Trinseo PLC

(Exact name of registrant as specified in its charter)


Ireland	001-36473	N/A
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification Number)

440 East Swedesford Road, Suite 301

Wayne, Pennsylvania 19087

(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):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading symbol	Name of Exchange on which registered
Ordinary Shares, par value $0.01 per share	TSE	New York Stock Exchange

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 ☐

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. ☐

ITEM 2.02

Results of Operations and Financial Condition

On May 4, 2023, Trinseo PLC, a public limited company existing under the laws of Ireland (the “Company”), issued a press release announcing its financial results for the first quarter ended March 31, 2023. A copy of the press release is furnished as Exhibit 99.1 hereto. The Company intends to hold an investor call and webcast to discuss these results on Friday, May 5, 2023 at 10 AM Eastern Time. Ahead of this call the Company is also making available on its website an investor presentation, which will be discussed on the call and is furnished as Exhibit 99.2 hereto.

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

ay
Exhibit Number		Description
99.1		Press Release dated May 4, 2023
99.2		Investor Presentation, dated May 4, 2023
104		Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

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.

a
	TRINSEO PLC


	By:	/s/ David Stasse
	Name:	David Stasse
	Title:	Executive Vice President and Chief Financial Officer

Date: May 4, 2023

EX-99.1 2 tse-20230504xex99d1.htm EX-99.1

Exhibit 99.1


Contact:
Andy Myers
Tel : +1 610-240-3221
Email: aemyers@trinseo.com

Trinseo Reports First Quarter 2023 Financial Results, Announces Cash Improvement Initiatives and Updates 2023 Outlook

First Quarter 2023 and Other Highlights

●	Net loss from continuing operations of $49 million and diluted EPS from continuing operations of negative $1.40

●	Adjusted EBITDA* of $36 million, including a $19 million unfavorable impact from natural gas hedges and a $10 million impact from fixed cost under absorption due to inventory reduction initiatives; Adjusted Net Loss* of $35 million

●	Cash provided by operations of $45 million and capital expenditures of $22 million resulted in Free Cash Flow* of $24 million including a $52 million decrease in working capital

●	First quarter ending cash of $217 million with approximately $251 million of additional available liquidity under two undrawn, committed financing facilities

●	Announced the sale of the Matamoros, Mexico PMMA manufacturing facility for a cash consideration of $19 million; transaction expected to close this quarter

●	Sales volume and variable margin of products containing recycled materials both increased 1% versus prior year; these products represented 1% and 2% of total company sales volume and variable margin, respectively

●	Implemented cash improvement initiatives that are expected to improve cash generation by over $100 million in 2023

●	Restarting sales process for Styrenics business that will include marketing individual assets and regional businesses


	Three Months Ended
	March 31,
$millions, except per share data	2023		2022
Net Sales	$	996	$	1,387
Net Income (Loss) from continuing operations		(49)		17
Diluted EPS from continuing operations ($)		(1.40)		0.45
Adjusted Net Income (Loss)*		(35)		79
Adjusted EPS ($)*		(1.01)		2.08
EBITDA*		29		115
Adjusted EBITDA*		36		178

*For a reconciliation of EBITDA, Adjusted EBITDA, and Adjusted Net Income (Loss), all of which are non-GAAP measures, to Net Income (Loss), as well as a reconciliation of Free Cash Flow and Adjusted EPS, see Notes 2 and 3 to the financial statements included below.

WAYNE, Pa — May 4, 2023 — Trinseo (NYSE: TSE), a specialty material solutions provider, today reported its first quarter 2023 financial results. Net sales in the first quarter decreased 28% versus prior year. Lower sales volume across all reporting segments caused by continued customer destocking and underlying demand weakness led to a 20% decrease. Lower price, from the pass through of lower raw material costs, led to a 7% decrease.

First quarter net loss from continuing operations of $49 million was $66 million below prior year and first quarter Adjusted EBITDA of $36 million was $142 million below prior year. The reduced year-over-year profitability was driven by lower volume across all segments as well as lower margin, including an unfavorable $34 million net timing variance. First quarter results included a $19 million unfavorable impact from natural gas hedging as well as a $10 million impact from manufacturing cost under absorption.

Commenting on the Company’s first quarter performance, Frank Bozich, President and Chief Executive Officer of Trinseo, said, “Despite a similar demand environment from the fourth quarter, our operating results improved significantly due to lower costs as well as our asset restructuring actions. We generated positive free cash flow in this challenging environment as we implemented numerous liquidity improvement actions including working capital reductions. I want to thank our employees for delivering strong cash performance while continuing to work through this period of reduced market demand.”

First Quarter Results and Commentary by Business Segment

●

Engineered Materials net sales of $206 million for the quarter decreased 30% versus prior year due to lower volume across all products from weak underlying demand and continued customer destocking, particularly in building & construction, consumer electronics and wellness applications. Adjusted EBITDA of negative $12 million was $47 million below prior year from lower sales volume as well as lower MMA-related margins. Results included unfavorable impacts of $10 million from natural gas hedging, $7 million from net timing and $6 million from manufacturing cost under absorption.

●

Latex Binders net sales of $248 million for the quarter decreased 19% versus prior year including a 14% impact from lower volumes across all regions and applications. Adjusted EBITDA of $26 million was $4 million below prior year as lower volumes were partially offset by pricing initiatives. Volume for CASE products declined by 10% in the first quarter compared to prior year from customer destocking and reduced demand in building & construction applications. Sales to CASE applications remain more resilient in comparison to other applications and in the first quarter recorded a record-high proportion of segment net sales.

●

Plastics Solutions net sales of $290 million for the quarter were 27% below prior year primarily due to lower volumes. Sales decreased in polycarbonate from the announced shutdown of one production line as well as in copolymers for building & construction, industrial and consumer durables applications. These impacts were partially offset by higher volumes to automotive applications. Adjusted EBITDA of $26 million was $43 million below prior year as weaker demand led to lower sales volume and also pressured margins in polycarbonate and ABS products. Volumes supporting automotive applications improved 6% versus prior year, mainly in Europe and North America, as production and supply chain constraints eased. Results included a $13 million negative net timing variance versus prior year.

●

Polystyrene net sales of $209 million for the quarter were 34% below prior year. Lower volume led to a 22% decrease in sales and lower price, primarily from the pass through of lower styrene costs, led to a 10% decrease in sales. Adjusted EBITDA of $16 million was $29 million below prior year as weaker demand in appliance and building & construction applications led to lower volumes and contracted margins.

●

Feedstocks net sales of $43 million for the quarter were 39% below prior year from a 19% impact from lower volume and a 17% impact from lower price. Adjusted EBITDA of negative $11 million was $15 million below prior year from lower styrene margin, including an unfavorable net timing variance of $7 million. The styrene plant in Terneuzen, the Netherlands was restarted in late January 2023 and the styrene plant in Boehlen, Germany was permanently closed in December 2022.

●	Americas Styrenics Adjusted EBITDA of $18 million for the quarter was $4 million below prior year as lower styrene margin was partially offset by higher polystyrene margin.

2023 Outlook

●	Second quarter 2023 net loss from continuing operations of approximately $15 million and Adjusted EBITDA of approximately $80 million

●

Full-year 2023 net loss from continuing operations of $94 million to $61 million and Adjusted EBITDA of $275 million to $325 million (prior outlook of net income from continuing operations of $3 million to $33 million and Adjusted EBITDA of $375 million to $425 million†); lower Adjusted EBITDA outlook of $100 million at the midpoint due to $45 million of estimated natural gas hedge losses, $10 million of first quarter fixed cost under absorption, and the remainder from lower sales volume including extended destocking and an overall slower market recovery

●

Full-year 2023 cash from operations of approximately $165 million resulting in Free Cash Flow of approximately $75 million (prior outlook of cash from operations of approximately $100 million and breakeven Free Cash Flow†); higher Free Cash Flow outlook despite lower profitability due to cash improvement actions

Commenting on the outlook for 2023, Bozich said, “We anticipate performance will significantly improve in the second quarter from lower raw material and Corporate costs, better fixed cost absorption and a lower natural gas hedge loss. While we are expecting a gradual demand increase through the end of the year, the range of our full-year outlook reflects no sales volume improvement at the low end and a ten percent improvement at the high end.”

Bozich continued, “Despite the economic environment, we are taking actions to improve our cash and liquidity profile. These include the sale of our Matamoros sheet assets, a reduction in working capital, and capital expenditure deferments. In addition, we will substantially further reduce our cash dividend beginning with the dividend payable in the third quarter of 2023. We believe this is the right balance for success in both the near and long terms as we continue our evolution as a specialty material and sustainable solutions provider.”

†For the prior outlook, refer to the Company’s press release, furnished on its Form 8-K dated February 8, 2023, for a reconciliation of non-GAAP measures to their corresponding GAAP measures.

Conference Call and Webcast Information

Trinseo will host a conference call to discuss its first quarter 2023 financial results on Friday, May 5, 2023 at 10 a.m. Eastern Time.

Commenting on results will be Frank Bozich, President and Chief Executive Officer, David Stasse, Executive Vice President and Chief Financial Officer, and Andy Myers, Director of Investor Relations.

For those interested in asking questions during the Q&A session, please register using the following link:

●

Conference Call Registration

For those interested in listening only, please register for the webcast using the following link:

●

Webcast Registration

After registering for the conference call, you will receive a confirmation email with a meeting invitation and information for entry. Registration is open through the live call, but it is advised that you register in advance to ensure you are connected for the full call.

Trinseo has posted its first quarter 2023 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 May 5, 2024.

About Trinseo

Trinseo (NYSE: TSE) a specialty material solutions provider, partners with companies to bring ideas to life in an imaginative, smart and sustainability focused manner by combining its premier expertise, forward-looking innovations and best-in-class materials to unlock value for companies and consumers.

From design to manufacturing, Trinseo taps into decades of experience in diverse material solutions to address customers’ unique challenges in a wide range of industries, including building and construction, consumer goods, medical and mobility.

Trinseo’s approximately 3,400 employees bring endless creativity to reimagining the possibilities with clients all over the world from the company’s locations in North America, Europe and Asia Pacific. Trinseo reported net sales of approximately $5.0 billion in 2022. Discover more by visiting www.trinseo.com and connecting with Trinseo on LinkedIn, Twitter, Facebook and WeChat.

Use of non-GAAP measures

In addition to using standard measures of performance and liquidity that are recognized in accordance with accounting principles generally accepted in the United States of America (“GAAP”), we use additional measures of income excluding certain GAAP items (“non-GAAP measures”), such as Adjusted Net Income, EBITDA, Adjusted EBITDA and Adjusted EPS and measures of liquidity

excluding certain GAAP items, such as Free Cash Flow. We believe these measures are useful for investors and management in evaluating business trends and performance each period. These measures are also used to manage our business and assess current period profitability, as well as to provide an appropriate basis to evaluate the effectiveness of our pricing strategies. Such measures are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance or liquidity, as applicable. The definitions of each of these measures, further discussion of usefulness, and reconciliations of non-GAAP measures to GAAP measures are provided in the Notes to Condensed Consolidated Financial Information presented herein.

Cautionary Note on Forward-Looking Statements

This press release 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 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," “believe,” "intend," "forecast," "outlook," "will," "may," "might," "see," "tend," "assume," "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 future results to differ from those expressed by the forward-looking statements include, but are not limited to, our ability to successfully investigate and remediate chemical releases on or from our sites, make related capital expenditures, reimburse third-party cleanup costs or settle potential regulatory penalties or other claims; our ability to successfully execute our business and transformation strategy; increased costs or disruption in the supply of raw materials; increased energy costs; our ability to successfully generate cost savings and increase profitability through asset restructuring initiatives; compliance with laws and regulations impacting our business; conditions in the global economy and capital markets; and those discussed in our Annual Report on Form 10-K, under Part I, Item 1A —"Risk Factors" and elsewhere in our other reports, filings and furnishings made with the U.S. Securities and Exchange Commission from time to time. As a result of these or other factors, our actual results, performance or achievements 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 press release 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.

TRINSEO PLC

Condensed Consolidated Statements of Operations

(In millions, except per share data)

(Unaudited)


	Three Months Ended
	March 31,
	2023		2022
Net sales	$	996.3	$	1,386.7
Cost of sales		959.1		1,210.7
Gross profit		37.2		176.0
Selling, general and administrative expenses		84.7		96.7
Equity in earnings of unconsolidated affiliates		17.6		21.6
Impairment and other charges		0.3		36.3
Operating income (loss)		(30.2)		64.6
Interest expense, net		38.3		21.9
Other expense (income), net		(2.9)		3.0
Income (loss) from continuing operations before income taxes		(65.6)		39.7
Provision for (benefit from) income taxes		(16.7)		22.6
Net income (loss) from continuing operations		(48.9)		17.1
Net loss from discontinued operations, net of income taxes		—		(0.4)
Net income (loss)	$	(48.9)	$	16.7
Weighted average shares- basic		35.0		37.3
Net income (loss) per share- basic:
Continuing operations	$	(1.40)	$	0.46
Discontinued operations		—		(0.01)
Net income (loss) per share- basic	$	(1.40)	$	0.45
Weighted average shares- diluted		35.0		38.1
Net income (loss) per share- diluted:
Continuing operations	$	(1.40)	$	0.45
Discontinued operations		—		(0.01)
Net income (loss) per share- diluted	$	(1.40)	$	0.44

TRINSEO PLC

Condensed Consolidated Balance Sheets

(In millions)

(Unaudited)


	March 31,		December 31,
	2023		2022
Assets
Cash and cash equivalents	$	217.1	$	211.7
Accounts receivable, net of allowance		622.5		586.0
Inventories		502.6		553.6
Other current assets		34.1		39.4
Investments in unconsolidated affiliates		252.7		255.1
Property, plant, equipment, goodwill, and other intangible assets, net		1,854.6		1,873.5
Right-of-use assets - operating, net		73.0		76.1
Other long-term assets		184.9		164.8
Total assets	$	3,741.5	$	3,760.2
Liabilities and shareholders’ equity
Current liabilities		717.8		689.4
Long-term debt, net of unamortized deferred financing fees		2,299.9		2,301.6
Noncurrent lease liabilities - operating		57.2		60.2
Other noncurrent obligations		290.4		288.7
Shareholders’ equity		376.2		420.3
Total liabilities and shareholders’ equity	$	3,741.5	$	3,760.2

TRINSEO PLC

Condensed Consolidated Statements of Cash Flows

(In millions)

(Unaudited)


	Three Months Ended
	March 31,
	2023		2022
Cash flows from operating activities
Cash provided by (used in) operating activities - continuing operations	$	45.4	$	(5.2)
Cash provided by operating activities - discontinued operations		—		0.2
Cash provided by (used in) operating activities		45.4		(5.0)

Cash flows from investing activities
Capital expenditures		(21.8)		(23.9)
Cash paid for asset or business acquisitions, net of cash acquired ($0.0 and $1.0)		—		(22.2)
Cash used in investing activities - continuing operations		(21.8)		(46.1)
Cash used in investing activities - discontinued operations		—		(0.9)
Cash used in investing activities		(21.8)		(47.0)

Cash flows from financing activities
Short-term borrowings, net		(2.7)		(3.6)
Purchase of treasury shares		—		(51.9)
Dividends paid		(11.8)		(12.4)
Proceeds from exercise of option awards		0.1		1.7
Withholding taxes paid on restricted share units		(1.3)		(0.8)
Acquisition-related contingent consideration payment		(1.2)		—
Repurchases and repayments of long-term debt		(3.6)		(3.6)
Cash used in by financing activities		(20.5)		(70.6)
Effect of exchange rates on cash		2.3		(1.7)
Net change in cash, cash equivalents, and restricted cash		5.4		(124.3)
Cash, cash equivalents, and restricted cash—beginning of period		211.7		573.0
Cash, cash equivalents, and restricted cash—end of period	$	217.1	$	448.7
Less: Restricted cash		—		—
Cash and cash equivalents—end of period	$	217.1	$	448.7

TRINSEO PLC

Notes to Condensed Consolidated Financial Information

(Unaudited)

Note 1: Net Sales by Segment


	Three Months Ended
	March 31,
(In millions)	2023		2022
Engineered Materials	$	206.2	$	295.2
Latex Binders		248.1		306.7
Plastic Solutions		289.9		396.5
Polystyrene		209.1		318.0
Feedstocks		43.0		70.3
Americas Styrenics*		—		—
Total Net Sales	$	996.3	$	1,386.7

* 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 statements of operations.

Note 2: Reconciliation of Non-GAAP Performance Measures to Net Income

EBITDA is a non-GAAP financial performance measure, which is defined as income from continuing operations before interest expense, net; income tax provision; depreciation and amortization expense. We refer to EBITDA 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 charges; acquisition related costs and benefits, 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 (Loss) and Adjusted EPS as additional performance measures. Adjusted Net Income (Loss) is calculated as Adjusted EBITDA (defined beginning with net income from continuing operations, 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 (Loss) per weighted average diluted shares outstanding for a given period. We believe that Adjusted Net Income (Loss) 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
	March 31,
(In millions, except per share data)	2023		2022
Net income (loss)	$	(48.9)	$	16.7
Net loss from discontinued operations		—		(0.4)
Net income (loss) from continuing operations	$	(48.9)	$	17.1
Interest expense, net		38.3		21.9
Provision for (benefit from) income taxes		(16.7)		22.6
Depreciation and amortization		56.0		53.0
EBITDA	$	28.7	$	114.6
Net gain on disposition of businesses and assets		—		(0.3)	Other expense (income), net
Restructuring and other charges (a)		3.7		0.4	Selling, general, and administrative expenses
Acquisition transaction and integration net costs (b)		—		3.2	Cost of goods sold; Selling, general, and administrative expenses
Asset impairment charges or write-offs		0.3		0.7	Impairment and other charges
European Commission request for information (c)		—		35.6	Impairment and other charges
Other items (d)		3.6		23.4	Selling, general, and administrative expenses; Other expense (income), net
Adjusted EBITDA	$	36.3	$	177.6
Adjusted EBITDA to Adjusted Net Income (Loss):
Adjusted EBITDA		36.3		177.6
Interest expense, net		38.3		21.9
Provision for (benefit from) income taxes - Adjusted (e)		(20.0)		25.6
Depreciation and amortization - Adjusted (f)		53.3		50.9
Adjusted Net Income (Loss)	$	(35.3)	$	79.2
Weighted average shares- diluted		35.0		38.1
Adjusted EPS	$	(1.01)	$	2.08

Adjusted EBITDA by Segment:
Engineered Materials	$	(11.7)	$	34.7
Latex Binders		26.0		30.2
Plastic Solutions		25.6		68.6
Polystyrene		15.7		45.3
Feedstocks		(10.8)		4.1
Americas Styrenics		17.6		21.6
Corporate Unallocated		(26.1)		(26.9)
Adjusted EBITDA	$	36.3	$	177.6

(a)

Restructuring and other charges for the 2023 period primarily relates to contract termination costs as well as decommissioning and other charges incurred in connection with the Company’s asset restructuring plan. Restructuring and other charges for the 2022 period primarily relates to employee termination benefit charges incurred in connection with the Company’s transformational restructuring program.

(b)	Acquisition transaction and integration net costs for the 2022 period primarily relates to expenses incurred for the Company’s acquisition and integration of the PMMA business and Aristech Surfaces Acquisitions.

(c)	Amount for the 2022 period relates to the liability recorded in connection with the European Commission request for information, which was subsequently paid in full in December 2022.

(d)	Other items for the 2023 and 2022 periods primarily relate to fees incurred in conjunction with certain of the Company’s strategic initiatives, as well as costs related to our transition to a new enterprise resource planning system.

(e)

Adjusted to remove the tax impact of the items noted within the table above. 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)

Amounts for the three months ended March 31, 2023 and 2022 excludes accelerated depreciation of $2.7 million and $2.2 million, respectively. The 2023 period charges are primarily related to the shortening of the useful life of certain assets related to the asset restructuring plan. The 2023 and 2022 periods also include charges related to the shortening of the useful life of certain IT assets related to the Company’s transition to a new enterprise resource planning system.

For the same reasons discussed above, we are providing the following reconciliation of forecasted net income (loss) to forecasted Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted EPS for the three months ended June 30, 2023 and the full year ended December 31, 2023. See “Note on Forward-Looking Statements” above for a discussion of the limitations of these forecasts. Totals may not sum due to rounding.


		Three Months Ended		Year Ended
		June 30,		December 31,
(In millions, except per share data)		2023		2023
Adjusted EBITDA	$	80	$	275 – 325
Interest expense, net		(37)		(150)
Provision for income taxes		(9)		(11) – (28)
Depreciation and amortization		(48)		(200)
Reconciling items to Adjusted EBITDA (g)		—		(8)
Net Loss from continuing operations		(15)		(94) – (61)
Reconciling items to Adjusted Net Loss (g)		—		14
Adjusted Net Loss	$	(15)	$	(80) – (47)

Weighted average shares - diluted (h)		35.0		35.0
EPS from continuing operations - diluted ($)	$	(0.42)	$	(2.68) – (1.74)
Adjusted EPS ($)	$	(0.42)	$	(2.29) – (1.35)

(g)

Reconciling items to Adjusted EBITDA and Adjusted Net Income (Loss) 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 and, as a result, cannot be estimated without unreasonable cost or uncertainty. As such, for the forecasted full year ended December 31, 2023, we have only included known reconciling items incurred through the three months ended March 31, 2023. We have not included forecasted amounts for the second quarter and remainder of 2023.

(h)

Weighted average shares presented for the purpose of forecasting EPS and Adjusted EPS assume that the Company will be in a net loss position for the three months ended June 30, 2023 and for the full year 2023, and therefore excludes the impact of potentially dilutive shares, as the inclusion of said shares would have an anti-dilutive effect. Further, the weighted average shares presented do not forecast significant future share transactions or events, such as repurchases, significant share-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 EPS and Adjusted EPS during actual future periods.

Note 3: Reconciliation of Non-GAAP Liquidity Measures to Cash from Operations

The Company uses certain measures, such as Free Cash Flow as non-GAAP measures, 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 useful analytical indicators 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 alternatives 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 following detail, which is determined in accordance with GAAP.

Free Cash Flow


	Three Months Ended
	March 31,
(In millions)	2023		2022
Cash provided by (used in) operating activities	$	45.4	$	(5.0)
Capital expenditures		(21.8)		(24.8)
Free Cash Flow	$	23.6	$	(29.8)

For the same reasons discussed above, we are providing the following reconciliation of forecasted cash provided by operations and cash used for capital expenditures to forecasted Free Cash Flow for the year ended December 31, 2023. See “Note on Forward-Looking Statements” above for a discussion of the limitations of these forecasts.


	Year Ended
(In millions)	December 31, 2023
Cash provided by operating activities	$	165
Capital expenditures		(90)
Free Cash Flow	$	75

EX-99.2 3 tse-20230504xex99d2.htm EX-99.2

Exhibit 99.2

™Trademark of Trinseo PLC or its affiliates First Quarter 2023 Financial Results & Full-Year Outlook May 4, 2023

2 Introductions & Disclosure Rules Disclosure Rules This press release 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 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," “believe,” "intend," "forecast," "outlook," "will," "may," "might," "see," "tend," "assume," "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 future results to differ from those expressed by the forward-looking statements include, but are not limited to, our ability to successfully investigate and remediate chemical releases on or from our sites, make related capital expenditures, reimburse third-party cleanup costs or settle potential regulatory penalties or other claims; our ability to successfully execute our business and transformation strategy; increased costs or disruption in the supply of raw materials; increased energy costs; our ability to successfully generate cost savings and increase profitability through asset restructuring initiatives; compliance with laws and regulations impacting our business; conditions in the global economy and capital markets; and those discussed in our Annual Report on Form 10-K, under Part I, Item 1A —"Risk Factors" and elsewhere in our other reports, filings and furnishings made with the U.S. Securities and Exchange Commission from time to time. As a result of these or other factors, our actual results, performance or achievements 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 press release 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 EBITDA, 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 and liquidity position of the Company. Such measures when referenced herein should not be viewed as an alternative to GAAP measures of performance or liquidity, as applicable. We have provided a reconciliation of these measures to the most comparable GAAP metric alongside of the respective measure or otherwise in the Appendix section and in the accompanying press release. Introductions • Frank Bozich, President & CEO • David Stasse, Executive Vice President & CFO • Andy Myers, Director of Investor Relations

Summary 2023 Outlook Q1 2023 Results • Q1 cash provided by operations of $45 million led to Free Cash Flow* of $24 million – included a working capital release of $52 million from inventory reduction • Q1 ending cash balance of $217 million with $251 million of additional available liquidity under two undrawn, committed financing facilities • Announced sale of Matamoros facility for cash consideration of $19 million; Q2 close expected Cash Generation & Liquidity • Net loss from continuing operations of $94 million to $61 million and Adjusted EBITDA* of $275 million to $325 million • Cash from ops of approximately $165 million and Free Cash Flow* of approximately $75 million • Expect significant sequential improvement in Q2 from lower raw material and Corporate costs, higher fixed cost absorption and a lower natural gas hedge loss • Cash improvement actions of more than $100 million in 2023 including working capital reductions, CapEx deferments, further dividend reduction and the Matamoros sale • Focus on growth programs including material substitution applications and sustainable products containing recycled or bio-based materials • Restart of sales process of Styrenics business which will include marketing individual assets and regional businesses Key Initiatives • Net loss from continuing operations of $49 million and Adjusted EBITDA* of $36 million • Results included pre-tax impacts of $19 million for natural gas hedge losses and $10 million for fixed cost under absorption • Sequential Adjusted EBITDA* improvement from seasonally higher volumes, asset restructuring, commercial actions and lower costs 3 * See Appendix for a reconciliation of non-GAAP measures

Europe 545 U.S. 251 Asia-Pacific 168 Rest of World 33 Q1 2023 Sales and Volume Summary Europe • Year-over-year decrease in building & construction and durables partially offset by automotive • Sequential increase in PMMA and ABS in building & construction and automotive applications U.S. • Lower year-over-year demand and destocking in building & construction and consumer durables with growth in automotive as production constraints ease • Sequential increase in PMMA and ABS in building & construction and automotive applications Asia • Lower year-over-year demand for consumer electronics and durables partially offset by higher sales to automotive applications Sales Volume YoY: (20%) Sales Volume YoY: (14%) Sales Volume YoY: (22%) Net Sales Global $996 Sales Volume YoY: (20%) Net sales in $millions Volume variances exclude Feedstocks segment 4

5 Trinseo Q1 2023 Financial Results* *From continuing operations; ** See Appendix for a reconciliation of non-GAAP measures • Margins declined from general market weakness; unfavorable year-over-year net timing variance of $34 million • Q1 results included pre-tax impacts of $19 million for natural gas hedge losses and $10 million for manufacturing cost under absorption related to inventory reduction initiatives ($1.40) ($1.01) $0.45 $2.08 Diluted EPS Adj EPS** EPS ($) Q1'23 Q1'22 $996 ($49) $1,387 $17 Net Sales Net Income Net Sales & Net Income ($MM) Q1'23 Q1'22 Net Sales $36 $178 Q1'23 Q1'22 Adjusted EBITDA** ($MM) Vol Price FX Total (20%) (7%) (2%) (28%)

Natural Gas Hedging Impact 6 € 30 € 40 € 50 € 60 € 70 € 80 € 90 € 100 as of 1 Jan 2023 as of 3 May 2023 as of 1 Apr 2023 $0 $1 $2 $3 $4 $5 $6 as of 1 Jan 2023 as of 3 May 2023 as of 1 Apr 2023 Henry Hub Forward Curve ($/MMBtu) TTF Forward Curve (Euro/MwH) • Q1 natural gas hedge loss of $19 million, of which $7 million was realized hedges related to gas purchased in Q1; remainder was mark-to-market on future hedges • As of today, the future mark-to-market impact is expected to be minimal as the current forward curves are similar to the end of Q1 • We expect an average of about a $9 million hedge loss per quarter in Q2 through Q4 based on current hedges in place and current forward curves Q1 mark-to-market impact from change in forward curve ($12 million) Q2-to-date mark-to-market impact

7 Engineered Materials • Lower volume and margin from destocking and weak demand; demand impacts most acute in consumer electronics, building & construction and wellness applications • Results included unfavorable impacts of $10 million from natural gas hedging, $7 million from net timing and $6 million from manufacturing cost under absorption $206 $295 Q1'23 Q1'22 Net Sales ($MM) ($12) $35 Q1'23 Q1'22 Adjusted EBITDA ($MM) 46 60 Q1'23 Q1'22 Volume (kt) Vol Price FX Total (23%) (6%) (1%) (30%)

8 Latex Binders • Sequential profitability improvement from pricing initiatives • Lower year-over-year volumes in all regions and applications from customer destocking and lower structural demand • CASE volumes declined by 10% versus prior year from lower demand in building & construction applications; CASE represented a record-high proportion of segment net sales in the quarter $248 $307 Q1'23 Q1'22 Net Sales ($MM) $26 $30 Q1'23 Q1'22 Adjusted EBITDA ($MM) 112 132 Q1'23 Q1'22 Volume (kt) Vol Price FX Total (14%) (3%) (2%) (19%)

9 Plastics Solutions • Significant sequential volume and margin improvement as destocking subsided and raw materials declined • Year-over-year volume decline due to lower demand in building & construction and consumer durables applications as well as the shutdown of one polycarbonate line • $13 million negative net timing variance versus prior year $290 $396 Q1'23 Q1'22 Net Sales ($MM) $26 $69 Q1'23 Q1'22 Adjusted EBITDA ($MM) 109 134 Q1'23 Q1'22 Volume (kt) Vol Price FX Total (20%) (5%) (2%) (27%)

10 Polystyrene • Demand levels remain lower from softness in building & construction and appliance applications • Margin contraction from weaker demand and mix • 22% year-over-year increase in sales volume of recycled-content-containing polystyrene with a significant margin premium $209 $318 Q1'23 Q1'22 Net Sales ($MM) $16 $45 Q1'23 Q1'22 Adjusted EBITDA ($MM) 129 165 Q1'23 Q1'22 Volume (kt) Vol Price FX Total (22%) (10%) (2%) (34%)

11 Feedstocks & Americas Styrenics • Styrene production margins remain challenged globally • Terneuzen plant restarted at the end of January; Boehlen plant closed permanently at the end of Q4’22 ($11) $4 Q1'23 Q1'22 Adjusted EBITDA ($MM) FEEDSTOCKS AMERICAS STYRENICS $18 $22 Q1'23 Q1'22 Adjusted EBITDA ($MM) • Lower styrene margin partially offset by higher polystyrene margin

12 Q2 and FY 2023 Earnings Guidance Second Quarter 2023 net loss from continuing operations of approximately $15 million and Adjusted EBITDA* of approximately $80 million Significant sequential improvement expected from lower natural gas hedge loss (~$10 million), better fixed cost absorption (~$10 million) and lower raw material and Corporate costs (~$20 million) • Engineered Materials significantly higher from factors mentioned above • Approximately $20 million of above factors in Engineered Materials • Europe ammonia cost currently down ~50% versus Q1’23 average • Latex Binders higher from new business wins including CASE • Feedstocks higher from improved styrene margin • Base Plastics, Polystyrene and Americas Styrenics similar • Lower Corporate cost Full-Year 2023 net loss from continuing operations of $94 million to $61 million and Adjusted EBITDA* of $275 million to $325 million • Guidance range based on volume growth in the second half of the year • Low end of range assumes no volume growth from current levels; high end of range assumes volume growth of ~10% from current levels *For the definition of Adjusted EBITDA, refer to the accompanying press release furnished as Exhibit 99.1 to our Form 8-K dated May 4, 2023.

13 Recovery from Q3’22 Trough * See Appendix for a reconciliation of non-GAAP measures 539 514 444 418 434 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3 / Q4'23 Avg $178 $164 ($37) $6 $36 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3 / Q4'23 Avg Trade Volume • Q2: flat to low-single-digit sequential increase from end of destocking • H2’23 • Guidance range assumes growth of 0% to 10% from current levels • Expectation is a gradual demand increase through end of year Adj EBITDA* • Q2’23 • QoQ increase from lower natural gas hedge loss, better fixed cost absorption and lower raw material and Corporate costs • Third consecutive quarter of sequentially higher Adj EBITDA* • H2’23: volume increase from market recovery; 10% volume increase is ~$30 million profitability improvement per quarter Trade Volume (kt) Net income (loss) from continuing operations ($millions) Adj EBITDA* ($millions) ~$80 $80-$105 $17 $37 $(118) $(364) $(49) $(15)-$1 ~$(15) QoQ ~Flat FY 2023 guidance range based on H2’23 volume growth of 0% to 10%

14 FY 2023 Cash Flow Guidance Cash from Operations of approximately $165 million and Free Cash Flow* of approximately $75 million • Capital Expenditures: $90 million • Cash Interest: $150 million • Cash Taxes: $35 million • Restructuring: $35 million • Turnarounds: $10 million • Working capital release of ~$100 million at midpoint of guidance range * See Appendix for a reconciliation of non-GAAP measures Cash outlook includes more than $100 million of improvement actions including working capital reductions, Matamoros asset sale, capital expenditure deferments and a further significant reduction in the dividend

Appendix

16 Selected Segment Information (in $millions, unless noted) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 2020 2021 2022 Engineered Materials 12 10 13 16 16 43 53 58 60 60 50 41 46 51 170 212 Latex Binders 135 115 133 131 137 139 141 135 132 138 132 117 112 514 553 520 Plastics Solutions 131 101 139 140 143 142 135 128 134 120 100 102 109 511 548 457 Polystyrene 152 171 163 160 163 150 154 145 165 141 124 134 129 645 612 564 Feedstocks 72 50 59 66 65 54 49 55 46 54 37 24 38 247 223 162 Trade Volume (kt) 502 447 507 513 525 528 532 521 539 514 444 418 434 1,968 2,106 1,915 Engineered Materials 48 38 50 60 66 181 231 277 295 301 243 205 206 195 755 1,044 Latex Binders 219 165 183 200 251 311 316 306 307 354 341 255 248 767 1,183 1,256 Plastics Solutions 257 151 240 269 329 397 393 379 396 362 293 271 290 918 1,498 1,323 Polystyrene 183 156 167 193 267 313 275 264 318 312 248 216 209 699 1,119 1,093 Feedstocks 56 24 39 47 73 71 55 73 70 97 53 28 43 166 272 249 Net Sales 763 534 679 768 986 1,274 1,269 1,298 1,387 1,426 1,178 975 996 2,745 4,827 4,966 Engineered Materials 8 5 9 12 8 28 33 26 35 34 8 (5) (12) 35 95 72 Latex Binders 21 16 19 21 17 32 37 20 30 29 31 20 26 77 106 111 Plastics Solutions 27 (12) 40 50 65 82 88 79 69 46 (15) (9) 26 106 314 91 Polystyrene 11 15 20 33 47 51 51 33 45 23 19 12 16 79 183 99 Feedstocks (17) (4) 10 14 46 40 (28) (25) 4 14 (78) (16) (11) 3 34 (75) Americas Styrenics 10 14 18 25 23 30 17 22 22 39 23 18 18 67 93 102 Corporate (22) (17) (16) (26) (22) (24) (25) (24) (27) (21) (24) (16) (26) (82) (96) (88) Adjusted EBITDA* 38 17 101 130 184 239 173 133 178 164 (37) 6 36 285 729 312 Adj EBITDA Variance Analysis Net Timing** Impacts - Fav/(Unfav) Engineered Materials (0) (1) 0 1 1 1 (0) 0 (0) 0 (1) (3) (7) 0 2 (3) Latex Binders (3) (2) (1) 0 (16) 3 2 (2) 3 (3) 7 (1) (0) (5) (13) 6 Plastics Solutions (1) (15) 2 3 5 (1) (1) 8 11 10 (1) (2) (2) (11) 11 17 Polystyrene (4) (3) 1 6 5 1 0 1 5 7 (6) (4) 1 (1) 6 1 Feedstocks (7) (8) 2 15 14 0 (2) 1 13 19 (23) (8) 6 1 13 1 Net Timing** Impacts - Fav/(Unfav) (15) (28) 3 25 8 5 (1) 7 32 33 (24) (19) (2) (16) 19 21 *See this Appendix for a reconciliation of non-GAAP measures **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 sold versus current pricing. Price Lag represents the difference in revenue between the current contractual price and the current period price.

17 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 accompanying press release furnished as Exhibit 99.1 to our Form 8-K dated May 4, 2023. Totals may not sum due to rounding. (in $millions, unless noted) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 2020 2021 2022 Net Income (Loss) (36.3) (128.4) 105.8 66.7 71.5 151.6 93.1 123.8 16.7 37.4 (119.8) (365.3) (48.9) 7.9 440.0 (430.9) Net Income (Loss) from discontinued operations 33.1 (154.2) 65.6 0.5 5.7 18.6 13.7 122.4 (0.4) 0.3 (1.9) (1.0) - (54.8) 160.4 (2.9) Net Income (Loss) from continuing operations (69.4) 25.8 40.2 66.2 65.8 133.0 79.4 1.4 17.1 37.1 (117.9) (364.3) (48.9) 62.7 279.6 (428.0) Interest expense, net 10.3 11.7 10.0 11.6 12.0 21.6 23.0 22.8 21.9 25.4 30.4 35.3 38.3 43.6 79.4 112.9 Provision for (benefit from) income taxes 42.3 (53.0) 26.9 26.5 20.1 23.3 5.5 22.0 22.6 30.8 (12.1) (83.0) (16.7) 42.7 70.9 (41.6) Depreciation and amortization 24.2 24.3 21.2 22.8 23.1 38.1 49.8 56.4 53.0 48.1 45.9 89.8 56.0 92.6 167.5 236.9 EBITDA 7.4 8.8 98.3 127.1 121.0 216.0 157.7 102.6 114.6 141.4 (53.7) (322.2) 28.7 241.6 597.4 (119.8) Other items 18.7 3.0 2.6 1.2 2.1 4.8 0.7 12.0 23.4 22.1 14.8 11.0 3.6 25.5 19.5 71.2 Restructuring and other charges 1.8 5.4 (0.1) (1.5) 0.3 6.3 0.2 2.2 0.4 (1.5) - 17.0 3.7 5.6 9.0 15.9 Net gain on disposition of businesses and assets (0.4) - - - (0.2) - - (0.4) (0.3) (1.5) - - - (0.4) (0.6) (1.8) Acquisition transaction and integration net costs 0.1 (0.4) - 9.4 6.0 43.2 13.6 12.5 3.2 2.7 0.4 0.4 - 9.1 75.3 6.6 Acquisition purchase price hedge loss (gain) - - - (7.3) 55.0 (33.0) - - - - - - - (7.3) 22.0 - European Commission request for information - - - - - - - - 35.6 - - 0.6 - - - 36.2 Goodwill impairment charges - - - - - - - - - - - 297.1 - - - 297.1 Asset impairment charges or write-offs 10.3 - - 0.7 - 1.8 1.2 3.8 0.7 1.3 1.9 2.4 0.3 11.0 6.8 6.3 Adjusted EBITDA 37.9 16.8 100.8 129.6 184.2 239.1 173.4 132.7 177.6 164.5 (36.6) 6.3 36.3 285.1 729.4 311.7 Adjusted EBITDA to Adjusted Net Income Adjusted EBITDA 37.9 16.8 100.8 129.6 184.2 239.1 173.4 132.7 177.6 164.5 (36.6) 6.3 36.3 285.1 729.4 311.7 Interest expense, net 10.3 11.7 10.0 11.6 12.0 21.6 23.0 22.8 21.9 25.4 30.4 35.3 38.3 43.6 79.4 112.9 Provision for (benefit from) income taxes - Adjusted 47.6 (54.7) 26.8 25.3 26.1 33.5 24.7 24.4 25.6 25.7 (9.6) (18.8) (20.0) 44.9 108.7 22.8 Depreciation and amortization - Adjusted 23.0 23.0 21.2 22.8 23.0 37.4 46.1 52.9 50.9 47.2 45.1 49.9 53.3 90.1 159.3 193.1 Adjusted Net Income (Loss) (43.0) 36.8 42.8 69.9 123.1 146.6 79.6 32.6 79.3 66.2 (102.5) (60.1) (35.3) 106.5 382.0 (17.1) Wtd Avg Shares - Diluted (000) 38,632 38,289 38,421 38,954 39,479 39,647 39,517 39,483 38,139 36,996 35,176 34,974 35,032 38,581 39,573 35,941 Adjusted EPS - Diluted ($) (1.11) 0.96 1.11 1.79 3.12 3.70 2.01 0.83 2.08 1.79 (2.91) (1.72) (1.01) 2.76 9.65 (0.48) Adjustments by Statement of Operations Caption Cost of sales - - - - - 10.1 3.5 3.5 - - - - - 0.0 17.1 0.0 SG&A 20.6 8.4 1.5 9.7 8.4 39.7 13.5 23.2 27.0 22.9 16.0 28.4 7.3 40.2 84.8 94.3 Impairment and other charges 10.3 - - 0.7 - 1.8 1.2 3.8 36.3 1.3 1.9 300.1 0.3 11.0 6.8 339.6 Acquisition purchase price hedge (gain) loss - - - (7.3) 55.0 (33.0) - - - - - - - (7.3) 22.0 0.0 Other expense (income), net (0.4) (0.4) 1.0 (0.6) (0.2) 4.5 (2.5) (0.4) (0.3) (1.1) (0.8) - - (0.4) 1.4 (2.2) Total EBITDA Adjustments 30.5 8.0 2.5 2.5 63.2 23.1 15.7 30.1 63.0 23.1 17.1 328.5 7.6 43.5 132.1 431.7 Free Cash Flow Reconciliation Cash provided by (used in) operating activities (5.8) 81.6 51.9 127.6 51.0 (21.0) 208.2 214.4 (5.0) (83.0) 97.6 33.9 45.4 255.4 452.7 43.5 Capital expenditures (24.3) (23.8) (12.7) (21.4) (12.6) (19.7) (35.7) (55.4) (24.8) (31.5) (38.5) (54.2) (21.8) (82.3) (123.5) (149.0) Free Cash Flow (30.1) 57.8 39.2 106.2 38.4 (40.7) 172.5 159.0 (29.8) (114.5) 59.1 (20.3) 23.6 173.1 329.2 (105.5) YTD

18 US GAAP to Non-GAAP Reconciliation (1) Reconciling items to Adjusted EBITDA and Adjusted Net Income (Loss) 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 and, as a result, cannot be estimated without unreasonable cost or uncertainty. For potential reconciling items to Adjusted EBITDA and Adjusted Net Income (Loss) during 2023 are not reflected. Profitability Outlook Cash Outlook NOTE: For definitions of non-GAAP measures as well as descriptions of current period reconciling items from Net Income (Loss) to Adjusted EBITDA and to Adjusted Net Income (Loss), refer to the accompanying press release furnished as Exhibit 99.1 to our Form 8-K dated May 4, 2023. Totals may not sum due to rounding. Year Ended Dec 31, 2023 Cash From Operations 165 Capital Expenditures (90) Free Cash Flow 75 Year Ended (In $millions, unless noted) Q2 2023 Q3 & Q4 2023 Dec 31, 2023 Adjusted EBITDA 80 159 - 209 275 - 325 Interest expense, net (37) (74) (150) Provision for income taxes (9) (19) - (36) (11) - (28) Depreciation and amortization (48) (96) (200) Reconciling items to Adjusted EBITDA(1) 0 0 (8) Net Income (loss) from continuing operations (15) (30) - 3 (94) - (61) Reconciling items to Adjusted Net Income (Loss) (1) 0 0 14 Adjusted Net Income (Loss) (15) (30) - 3 (80) - (47) Weighted avg shares - diluted (MM) 35.0 35.0 35.0 EPS - diluted ($) (0.42) (0.87) - 0.07 (2.68) - (1.74) Adjusted EPS ($) (0.42) (0.87) - 0.07 (2.29) - (1.35)