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™ Trademark of Trinseo S.A. or its affiliates
Jefferies Industrials Conference
August 11, 2016
™ Trademark of Trinseo S.A. or its affiliates
Introductions & Disclosure RulesIntroductions• Chris Pappas, President & CEO• Barry Niziolek, Executive Vice President & CFO• David Stasse, Vice President, Treasury & Corporate Finance
Disclosure RulesCautionary 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 statementsrelate 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 EBITDA excluding inventory revaluation, Adjusted Net Income (loss), and Adjusted EPS - Diluted. 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. We have provided a reconciliation of these measures in the Appendix section of this presentation.
2
Trinseo
• Leading producer of synthetic rubber, latex, and plastics
• Carved out of Dow Chemical in 2010• Global headquarters in Berwyn, PA• Diverse geographic and end market exposure• 1.3x net leverage
Overview
EBITDA ex Inventory Revaluation ($MM)
Other16%
Appliances9% Automotive
14%
Building & Construction /
Sheet14%
Carpet & Turf5%
Consumer Electronics
5%Packaging
8%Paper &
Paperboard17%
Tires / Rubber Goods12%
2015 Revenue by End Market
EMEA60%
North America
22%
Asia Pacific
14% Other4%
2015 Revenue by Geography
318 326
550600
2013 2014 2015 Q2 '16 LTM
3
Performance MaterialsNet Sales: $528MM
Adj EBITDA: $83MMAdj EBITDA ex Reval: $76MM
Basic Plastics & FeedstocksNet Sales: $442MM
Adj EBITDA: $121MMAdj EBITDA ex Reval: $115MM
Latex
Net Sales: $232MMAdj EBITDA: $21MM
Strategic Intent: Grow EBITDA via technology leadership in
focused markets Stable and consistent cash generation Organic growth and possible bolt-on
acquisitions
Strategic Intent: Generate cash via cost control and margin
improvement Manage JVs for cash generation No organic investment
Styrenic Polymers / Americas Styrenics
Polycarbonate / Sumika Styron PC
Feedstocks
Synthetic Rubber
Net Sales: $111MMAdj EBITDA: $30MM
Performance Plastics
Net Sales: $184MMAdj EBITDA: $31MM
Net Sales: $970MMAdj EBITDA: $182MM
Adj EBITDA ex Reval: $169MMAdj EPS: $2.30
Note: Division and Segment Adjusted EBITDA and Adjusted EBITDA excluding inventory revaluation exclude Corporate Segment Adjusted EBITDA of $(21)MM. Totals may not sum due to rounding.
Trinseo Overview – Q2 2016
4
Styrene Margins(a) Americas Styrenics JV ($MM)
Polycarbonate Margins & Operating Rates(a)
$-
$100
$200
$300
$400
$500
$600
$700
Jan-
12
Apr-
12
Jul-1
2
Oct
-12
Jan-
13
Apr-
13
Jul-1
3
Oct
-13
Jan-
14
Apr-
14
Jul-1
4
Oct
-14
Jan-
15
Apr-
15
Jul-1
5
Oct
-15
Jan-
16
Apr-
16
Jul-1
6
Oct
-16
USD
/MT
$776
$173 $265 $228
$520 $546 78%
76%75%
77%
80%
82%
2011 2012 2013 2014 2015 Q2'16 LTM
Glob
al O
pera
ting
Rate
s
W E
urop
e M
argi
n U
SD/M
T
Source: IHS/Trinseo(a) Margins for Western Europe.
Leverage to styrenics 1,400kt exposure to styrene
600kT of European production 300kT of Asian purchases w/ cost-based economics 500kT of AmSty N American production (TSE’s 50% share)
1,300kt of exposure to styrenic polymers 950kT of TSE production 350kT of AmSty N American production (TSE’s 50% share)
Leverage to polycarbonate 150kT of European production
Key Highlights
Basic Plastics & Feedstocks
$78 $70
$250
$280
$45
$106
$283
2013 2014 2015 Q2'16 LTMDistributions EBITDA
5
$465
$439
Q2'16
$170
$25
$247
$344
$56
$69
2013 2014 2015 Q2'16 LTM
Balance Sheet and Cash Flow
Liquidity ($MM)
Net Leverage(3)
(1) Free Cash Flow = cash from operating activities + cash from investing activities – change in restricted cash. 2015 value of $316MM excludes a call premium of approximately $69MM. 2014 value of $81MM excludes approximately $56MM of termination fees for Latex JV Option and Bain Advisory Agreement.
(2) A/R Securitization facility commitment of $200MM ($130MM available at Q2’16) and Revolving Credit facility commitment of $325MM ($309MM available at Q2’16). NOTE: Totals may not sum due to rounding.(3) Net Leverage = (Total Debt – Cash & Cash Equivalents) / LTM Adjusted EBITDA
Summary• Q2 cash from operating activities of $95 million and
free cash flow of $68 million• Q2 dividends of $30 million from Americas Styrenics• Net leverage of 1.3x at quarter end
Unused Borrowing Facilities(2)
Cash & Cash Equivalents
Free Cash Flow ($MM) (1)
$81
Call premium related to refinancing
$904
$316
4.1x 3.8x
1.6x 1.3x
2013 2014 2015 Q2'16 LTM
6
™ Trademark of Trinseo S.A. or its affiliates
Q&A
™ Trademark of Trinseo S.A. or its affiliates
™ Trademark of Trinseo S.A. or its affiliates
Appendix
™ Trademark of Trinseo S.A. or its affiliates
Austria, 3% Belgium, 5%Czech Republic, 4%
Finland, 3%
France, 6%
Germany, 28%
Italy, 7%Poland, 3%
Sweden, 6%
Switzerland, 3%
Netherlands, 4%
Turkey, 6%
United Kingdom, 5%
Other, 19%
2015 EMEA* Sales by Country
EMEA*, 60%Asia Pacific, 22%
United States, 14%
Other, 4%
2015 Net Sales by Geography
Trinseo Sales by Region
* EMEA includes Europe, Middle East, and Africa1) Sales on destination basis
1
9
Trinseo Sales by Market Segment
Other, 19%
Appliances, 7% Automotive,
12%
Building & Construction / Sheet, 18%
Carpet & Turf, 4%
Consumer Electronics,
2%
Packaging, 11%
Paper & Paperboard,
14%
Tires / Rubber Goods, 14%
GlobalSales by End Market
EuropeSales by End Market
Other16%
Appliances9% Automotive
14%
Building & Construction /
Sheet14%
Carpet & Turf5%
Consumer Electronics
5%Packaging
8%Paper &
Paperboard17%
Tires / Rubber Goods12%
10
Bridging to 2016 Guidance
$550 $610
($60)
+$20
+$100
2015 Adj EBITDA excl InvRevaluation
2015 Fly-up StyreneMargin
Performance Materials>5% Growth
BP&F StructuralImprovement
2016 Adj EBITDA excl InvRevaluation (Guidance
Midpoint)
Adj EBITDA excl Inventory Revaluation ($MM)
Basic Plastics & Feedstocks Structural Improvement• Market improvement – approximately $55 million styrene
monomer and $25 million styrenic polymers• About $20 million from lower utility cost, improved yield
11
Latex
Key Highlights 3% year-over-year volume growth
$5 million annual cost savings initiative achieved 1st half 2016, others ongoing
Evaluating asset footprint
North America
− Gales Ferry, CT plant closure end of 2015
− Increased utilization rates
− Improving margins via price increases
Deliver consistent results
– Grow Asia, carpet, performance latex– Leverage cost-advantaged position to minimize
coated paper volume declines in North America / Europe
Volume / EBITDA Margin
Business Overview Strategy
1,210 1,193 1,233
8% 8% 8%
0%
2%
4%
6%
8%
10%
12%
400
500
600
700
800
900
1,000
1,100
1,200
1,300
2013 2014 2015
Adjusted EBITD
A Margin
MM
lbs
Trade Volume Adjusted EBITDA Margin
12
13
Source: IHS. Europe: Western Europe + Central Europe; Asia: Northeast Asia + Southeast Asia.Note: Totals may not sum due to rounding.
Europe
North America
Asia
Total Capacity: 898kMT Total Capacity: 1,710kMT
Total Capacity: 477kMT
SB Latex Capacity
Trinseo30%
BASF SE26%
Synthomer19%
Other25%
Trinseo35%
OMNOVA Solutions
44%
BASF Corp.14%
Other7%
BASF SE10%
Nippon A & L10%
JSR 8%
Gao Qiao BASF Dispersion 6%
LG Chem 5%
Rizhao Kumho Jinma4%
Kumho Petrochemical
4%
Trinseo 4%
Asahi Kasei Chem. 3%
Shin Foong3%
Others 42%
Focused on high performance tire market
− Growing 2-3 times standard tire market
Mix shift toward premium products
− Enhanced SSBR as % of SSBR– 38% 2012 → 57% 2015
Record sales volume in 2015
− 24% year-over-year growth in enhanced SSBR
Completed conversion of nickel to neodymium-PBR
Financial Overview
Shifting Volume Mix Key Highlights
Synthetic Rubber
523 568
601
18%
22%20%
0%
5%
10%
15%
20%
25%
30%
0
100
200
300
400
500
600
2013 2014 2015
Adjusted EB
ITDA
Margin
MM
lbs
Trade Volume Adjusted EBITDA Margin
30% 38% 45% 48%
0%
25%
50%
75%
100%
2012 2013 2014 2015
ESBR PBR-Li PBR-Ni SSBR
14
ESBR ESBR
Li-PBR Li-PBR
Ni-PBRNi-PBR
Base SSBR
Base SSBR
Enhanced SSBR
Enhanced SSBR
2012A 2015A
740 730 830
190 300
410 930
1,030
1,240
0
200
400
600
800
1,000
1,200
1,400
2010A 2015E 2020E
Standard (<=16") Premium (>=17")
Global Premium Passenger Car Tires Trinseo Synthetic Rubber Volume Mix Shift
Source: Global Insight, LMC Automotive.
Well Positioned to Benefit from Premium Tire Growth Doubled SSBR Capacity Since 2012
SSBRTargetEnd-market
HigherMargin
Lowermargin
Beingconvertedto highermarginNd-PBR
2010 – 2020CAGR
2.9%
8.0%
1.2%
15
MM
Synthetic Rubber – Focus on SSBR
Bridg/Firestn
56%
Lanxess16%
ASRC13%
DYNASOL13%
Goodyear3%
16
Source: IHS. Europe: Western Europe + Central Europe; Asia: Northeast Asia + Southeast Asia.Note: Europe excludes 170kMT of Michelin captive capacity. Totals may not sum due to rounding.
Europe
North America
Asia
Total Capacity: 285kMT Total Capacity: 840kMT
Total Capacity: 320kMT
SSBR Capacity
Asahi Kasei Chem.19%
Nippon Zeon11%
Kumho Petrochemi
cal10%JSR
7%LG Chem
7%
Others46%
Trinseo60%Synthos
S.A.16%
Lanxess14%
Versalis S.p.A.11%
Sustainable, long-standing relationships with automotive, consumer electronics, lighting, and medical industry leaders
Production on four continents drives OEM platform design wins
Record 2015 Adjusted EBITDA 4% year-over-year segment volume growth in 2015
excluding Latin America CEM volume up 9% in 2015
Compounds and blends business focused on automotive and consumer electronics, lighting, and medical applications (CEM)
Differentiated products in line with key industry trends such as auto light-weighting, aesthetics, recycled material content
Business Overview Strategy
Volume / EBITDA Margin Key Highlights
Performance Plastics
579 580 590
7% 8%
11%
0%
5%
10%
15%
20%
25%
300
400
500
600
2013 2014 2015
Adjusted EB
ITDA
Margin
MM
lbs
Trade Volume Adjusted EBITDA Margin
17
200
350
0
100
200
300
400
2014E 2020E
Kg
Avg. Car Plastic Components903 930 957 986 1,015 1,045
178 190 203 216 230 246390
517 607
721 867
1,054
159
170183
200
220
247
0
500
1,000
1,500
2,000
2,500
3,000
2014E 2015E 2016E 2017E 2018E 2019E
Kto
ns
Electrical Medical Connected Devices LED
18
2014 – 2019CAGR
9.7%
9.2%
6.6%
22.0%
3.0%
Situated to Capitalize on Consumer Essential Markets and Vehicle Light Weighting Initiatives
Global Growth Trends in Consumer Essential Markets Weight Reduction in Automotive Design and Manufacture
Source: Roland Berger; IHS.
Average Plastic Content per Vehicle
Performance Plastics
Longer term trend toward higher styrene operating rates and margins− Aging industry asset base− Demand growth forecasted to be higher than supply
growth over next five years− Global operating rates in mid 80s
Polycarbonate− Full-year impact of restructuring savings in 2015− Market improvement
– Operating rates have increased to over 80%– Significant margin expansion 2014 to 2016– $100 / MT margin = $15MM EBITDA
Polycarbonate Margins & Operating Rates (a) Key Highlights
Styrene Margins(a) Americas Styrenics JV
Source: IHS/Trinseo(a) Margins for Western Europe.
Basic Plastics & Feedstocks
$776
$174 $265 $227
$521 78%
76% 75%
77%
80%+
2011 2012 2013 2014 2015
Global O
perating Rates
W E
urop
e M
argi
n U
SD/M
T
Western Europe Margin Global Op Rates
$40 $45 $70
$250
$68 $78 $106
$283
2012 2013 2014 2015
$MM
Distributions EBITDA
0
100
200
300
400
500
600
USD
/MT
19
400 600 800
1,000 1,200 1,400 1,600 1,800 2,000
Styr
ene
Mar
gin
-USD
/MT
USD
/MT
400 600 800
1,000 1,200 1,400 1,600 1,800 2,000 2,200
Styr
ene
Mar
gin
-USD
/MT
USD
/MT
Western Europe and Asia Styrene Margin Trends
Western Europe Margin
Asia Margin
Q2 to Q3-$25/MT
Q2 to Q3-125$/MT
Source: IHS/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). Margin: Styrene less 80% * Benzene less 30% * Ethylene.
Styrene
EthyleneBenzene
SM Margin
Styrene Ethylene
Benzene
SM Margin
20
Capacity by Region(1)
Source: IHS/Trinseo. Europe: Western Europe + Central Europe; Asia: Northeast Asia + Southeast Asia.Note: Totals may not sum due to rounding.(a) 50% / 50% joint venture between Trinseo and Chevron Phillips Chemical Company.
Total Capacity: 5,455kMT
Total Capacity: 16,628kMT
Total Capacity: 6,022kMT
Europe
Asia
North America
Styrene Monomer Capacity
Trinseo15%
Lyondell/Bayer12%
Total PC11%
Versalis S.p.A.11%
Ellba10%
BASF SE10%
Styrolution9%
Other22% Styrolution
28%
LyondellBasell21%
Cosmar19%
Americas Styrenics
18%
Other14%
FCFC7%
Asahi Kasei Chem.4%
LG Chem4%Secco
4% Hanwha Total PC4%
CNOOC & Shell PC4%
ZRCC/Lyondell JV4%
Other69%
21
Source: IHS/Trinseo
9,110kt's
6,699kt's
8,396kt's 8,917kt's
30+ Years 20 - 30 Years 10 - 20 Years Less than 10 Years
Global Styrene Capacity (33,122kt's)28%
20%
25%27%
2,035kt's
1,100kt's
2,040kt's
30+ Years 20 - 30 Years 10 - 20 Years
Western Europe Styrene Capacity (5,175kt's)39%
21%
39%
1,040kt's
4,074kt's
3,055kt's
7,042kt's
30+ Years 20 - 30 Years 10 - 20 Years Less than 10 Years
Northeast Asia Styrene Capacity (15,211kt's)
7%
27%
20%
46%
Styrene Plant Ages
22
23
Source: IHS.Note: Totals many not sum due to rounding.
Demand by Product Demand by Region
Styrene Demand
Polystyrene37%
Expandable PS21%
ABS Resins16%
S.B. Latex5%
Unsat. PE Resins
5%
S.B. Rubber4%
Other12%
Northeast Asia53%
Western Europe
16%
North America
14%
Southeast Asia5%
Other12%
North America
Europe
AsiaPacific400kta
1,700kta
500kta
100kta300kta From U.S.
South America
Middle East Africa
Based on 2015 Forecast
Global SM Capacity: 33 MM MT
Global SM Demand: 28 MM MT
Average Operating Rate: 84%
NameplateCapacity
Demand
Actual Production
Balance
Approx 3.2MM mt intercontinental flow ≈ 11% SM demand
17,200 16,700 14,400
-2,300
5,900 4,000 5,2001,200
700 900 500-400
6,200 5,400 5,000
-400
3,100 1,000 2,800 1,800
Global Styrene Trade Flows 2015
Major SM Flow ME to Asia/Pacific ME raw material advantaged “proxy” production base for China
24
0.1%
1.2%
Supply2015 - 2020 CAGR
Demand2015 - 2020 CAGR
2015 - 2020 Supply vs Demand
Other
Bldg & Construction
Consumer Products
Electronics/ Appliances
Packaging
0%
25%
50%
75%
100%
2015 - 2020 CAGR
Dem
and
by M
arke
t
CAGR
Global Supply / Demand
25
Source: IHS. Europe: Western Europe + Central Europe; Asia: Northeast Asia + Southeast Asia.Note: Totals may not sum due to rounding.
Total Capacity: 2,192kMT Total Capacity: 7,921kMT
Global Demand
Capacity by RegionEurope Asia
Polystyrene
0.5%
2.0%
1.0%1.8%
0.8%
1.2%
Styrolution29%
Trinseo20%Total PC
13%
Versalis S.p.A.13%
Other25%
FCFC7%
Jiangsu Laidun
6%
Zhenjiang ChiMei
6%
Rentai Chemical
5%
Trinseo4%
Toyo Styrene4%
PS Japan4%
Huizhou Renxin PS
4%Secco 4%
Other56%
50% / 50% JV with CP Chem formed in 2008– $1.6 billion revenue in 2015
Leading N.A. producer of styrene and polystyrene– Second largest polystyrene producer in N.A.– Fourth largest styrene producer in N.A.– Also produces HIPS and GPPS products
EBITDA / Distributions Key Highlights
Business Overview North America Polystyrene Capacity(a)
Source: IHS.Note: Totals may not sum due to rounding.(a) Polystyrene Capacity for North America. 2015 Total Capacity: 2,579kMT.
2014 Summary– EBITDA margins increased by 160bps over prior year– 2014 record EBITDA – $87MM of free cash flow– $70MM of distributions to owners– $50MM of JV equity income
2015 Summary– $250MM of distributions to owners– $135MM of JV equity income for TSE
Americas Styrenics JV
Americas Styrenics29%
Styrolution29%
Total PC26%
Other16%
$40 $45 $70
$250
$68 $78 $106
$283
2012 2013 2014 2015
$MM
Distributions EBITDA
26
27
Source: IHS.Note: Totals many not sum due to rounding.
Demand by RegionDemand by Market
Polystyrene Demand
Packaging -one time use
38%
Electronics / Appliances
30%
Consumer Products
13%
Building / Construction
8%
Other10%
Northeast Asia38%
North America20%
Western Europe
14%
Middle East6%
South America6%
Southeast Asia5%
Other11%
Covestro14%
Teijin11%
Formosa Idemitsu
8%
Samsung SDI7%
Thai Polycarbonate7%
LG Polycarbonate7%
Teijin Polycarb6%
Chi Mei-Asahi6%
Bayer Poly Shanghai
5%
Sumika Styron PCB
(SSPC)3%
Others26%SABIC
Plastics40%
Covestro47%
Trinseo13%
Europe: Western Europe + Central Europe; Asia: Northeast Asia + Southeast Asia.; (1) IHS/Trinseo; (2) Frost & Sullivan. SSPC is a 50% / 50% venture with Sumika; NOTE: Totals may not sum due to rounding.
Increasing Margins with Operating Rate(1) Increasing Operating Rate
Total Capacity: 1,210kMT
Capacity by Region(1)
Europe Asia
Total Capacity: 2,413kMT
North America
Total Capacity: 858kMT
Polycarbonate
$776
$174 $265 $227
$521 78%
76% 75%
77%
80%+
2011 2012 2013 2014 2015
Global O
perating Rates
W E
urop
e M
argi
n U
SD/M
T
Western Europe Margin Global Op Rates
2%
5%
Supply2014 - 2019 CAGR(1)
Demand2014 - 2019 CAGR(2)
Rising Operating Rate from 2014 to 2019
SABIC Plastics
70%
Covestro30%
28
29
Source: IHS.Note: Totals many not sum due to rounding.
Demand by RegionDemand by Market
Polycarbonate Demand
Electronics/Electrical21%
Sheet/Film20%
Appliances/Housewares13%
Automotive (Non-Window)
13%
Optical Media12%
Packaging5%
Other16%
Northeast Asia53%
North America14%
Western Europe13%
Southeast Asia6%
Other14%
Historical Polycarbonate Margins
Source: IHS
Polycarbonate GP Western Europe Margin
(500)
-
500
1,000
1,500
2,000
2,500
3,000
USD
/MT
30
Historical Styrene Margins
Source: IHS
Styrene Western Europe Margin
0
100
200
300
400
500
600
700
USD
/MT
31
Ability to Capture Margins Throughout the Value Chain
Connected Across the Value Chain with End-Market Diversification
Feedstocks
Trinseo End-Markets
Trinseo Products
Pygas
Cracker
Propylene
Crude C4 Butadiene
Benzene
Cumene Bisphenol A
Ethylene Styrene
Latex
Compounds & Blends
Synthetic Rubber
Polystyrene
ABS/SAN
PolycarbonateACN
Polyprop.
Other Raw Materials
Paper/Carpet
Automotive
Appliances
Consumerelectronics
Tires
Construction
Packaging
22%
14%
9%
5%
12%
14%
8%
% sales (a)
Other Purchased Raw Materials
32
(a) 2015 net sales by end market; excludes other end markets representing 16% of business.
US GAAP to Non-GAAP Reconciliation
NOTE: Totals may not sum due to rounding.
Third Quarter and Full Year 2016
Three Months Ended Year Ended
(In millions, except per share data) September 30,
2016 December 31,
2016 Adjusted EBITDA excluding inventory revaluation $ 140 - 150 $ 605 - 615 Interest expense, net (20 ) (76 ) Provision for income taxes (21) – (24 ) (94) – (97 ) Depreciation and amortization (26 ) (102 ) Reconciling items to Adjusted EBITDA — (17 ) Net Income 73 - 80 316 - 323 Reconciling items to Adjusted Net Income — 17 Adjusted Net Income 73 - 80 333 - 340 Weighted average shares- diluted 47.3 47.9 Adjusted EPS $ 1.55 - 1.70 $ 6.95 – 7.10
33
US GAAP to Non-GAAP Reconciliation
NOTE: Totals may not sum due to rounding.
(in $millions, unless noted) Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 2013 2014 2015Net Income (Loss) 17.1 (44.6) (10.1) (29.7) 37.7 0.8 52.1 43.1 76.7 95.8 (22.2) (67.3) 133.6
Interest expense, net 32.8 32.6 30.1 29.4 28.9 25.6 19.5 19.3 18.9 18.8 132.0 124.9 93.2Provision for (benefit from) income taxes 12.8 5.5 3.7 (2.1) 17.9 7.5 21.2 23.6 21.9 28.6 21.8 19.7 70.2Depreciation and amortization 23.7 27.1 27.8 24.9 22.5 21.7 23.0 29.5 23.2 24.9 95.2 103.7 96.8
EBITDA 86.4 20.6 51.5 22.5 107.0 55.6 115.8 115.5 140.7 168.1 226.8 181.0 393.8
Loss on extinguishment of long-term debt - - 7.4 - - 95.2 - - - - 20.7 7.4 95.2Other items - 32.5 1.9 3.9 1.3 0.6 0.3 - 1.8 0.3 0.8 38.4 2.2Restructuring and other charges 0.5 2.1 0.8 6.6 0.5 (0.1) 0.1 0.2 0.7 1.1 10.8 10.0 0.8Net (gains) / losses on dispositions of businesses and assets - - - (0.6) - - - - - 12.9 4.2 (0.6) -Fees paid pursuant to advisory agreement 1.2 24.2 - - - - - - - - 4.7 25.4 -Asset impairment charges or write-offs - - - - - - - - - - 9.9 - -
Adjusted EBITDA 88.1 79.4 61.6 32.4 108.8 151.3 116.2 115.7 143.2 182.4 277.9 261.6 492.0Inventory Revaluation (5.6) (2.6) 0.8 71.8 42.1 (29.4) 28.3 17.3 9.7 (12.9) 40.4 64.4 58.3
Adjusted EBITDA Ex Inv Reval 82.5 76.8 62.4 104.2 150.9 121.9 144.5 133.0 152.9 169.5 318.3 326.0 550.3
Adjusted EBITDA to Adjusted Net Income Adjusted EBITDA 88.1 79.4 61.6 32.4 108.8 151.3 116.2 115.7 143.2 182.4 277.9 261.6 492.0
Interest expense, net 32.8 32.6 30.1 29.4 28.9 25.6 19.5 19.3 18.9 18.8 132.0 124.9 93.2Provision for (benefit from) income taxes - Adjusted 12.0 10.1 5.4 1.8 18.3 25.5 22.3 18.7 22.4 28.8 28.4 29.4 84.9Depreciation and amortization - Adjusted 23.7 25.8 25.6 24.5 22.3 21.6 22.1 23.4 22.6 24.9 95.2 99.6 89.3
Adjusted Net Income 19.6 10.9 0.5 (23.3) 39.3 78.6 52.3 54.3 79.3 109.9 22.3 7.7 224.6Wtd Avg Shares - Diluted (000) 37,270 38,912 50,063 48,770 48,851 48,907 48,989 49,067 49,086 47,857 37,270 43,476 48,970Adjusted EPS - Diluted ($) 0.53 0.28 0.01 (0.48) 0.80 1.61 1.07 1.11 1.62 2.30 0.60 0.18 4.59
Adjustments by Statement of Operations CaptionLoss on extinguishment of long-term debt - - 7.4 - - 95.2 - - - - 20.7 7.4 95.2Selling, general and administrative expenses 1.7 26.3 2.7 10.5 1.8 0.5 0.4 0.2 2.5 1.4 25.5 41.3 3.0Other expense (income), net - 32.5 - (0.6) - - - - - 12.9 4.9 31.9 -
Total EBITDA Adjustments 1.7 58.8 10.1 9.9 1.8 95.7 0.4 0.2 2.5 14.3 51.1 80.6 98.2
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Selected Segment Information
NOTE: Totals may not sum due to rounding.
(in $millions, unless noted) Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 2013 2014 2015 Q2'16 LTMLatex 299 295 309 289 305 312 307 308 299 310 1,210 1,193 1,233 1,225Synthetic Rubber 155 142 136 135 162 153 152 134 146 148 523 568 601 580Performance Plastics 144 147 145 145 150 150 144 146 143 154 579 581 590 587
Performance Materials 598 584 591 569 617 616 603 588 588 613 2,312 2,342 2,423 2,392Basic Plastics & Feedstocks 746 743 725 654 793 708 724 690 764 734 2,810 2,867 2,915 2,911
Trade Volume (MMLbs) 1,344 1,327 1,315 1,223 1,411 1,323 1,327 1,277 1,352 1,347 5,122 5,210 5,339 5,303
Latex 326 321 328 286 238 248 255 226 209 232 1,341 1,261 966 922Synthetic Rubber 177 165 155 137 129 115 126 104 102 111 622 634 475 443Performance Plastics 202 210 208 202 197 185 180 181 169 184 808 821 743 713
Performance Materials 705 695 691 624 565 548 561 510 480 528 2,771 2,716 2,184 2,079Basic Plastics & Feedstocks 654 645 614 498 454 480 467 387 414 442 2,536 2,412 1,788 1,710
Net Sales 1,359 1,341 1,305 1,122 1,018 1,029 1,028 897 894 970 5,307 5,128 3,972 3,789
Latex 26 27 26 18 21 15 24 18 19 21 106 97 79 83Synthetic Rubber 43 37 27 30 26 18 27 21 23 30 113 137 93 102Performance Plastics 17 17 19 16 25 21 15 22 30 31 62 69 83 97
Performance Materials 87 81 72 65 73 55 66 61 72 83 281 304 255 282Basic Plastics & Feedstocks 23 16 4 (12) 59 122 70 75 97 121 103 31 327 363Corporate (21) (17) (15) (20) (23) (25) (21) (20) (25) (21) (107) (73) (90) (87)Adjusted EBITDA 88 79 62 32 109 151 116 116 143 182 278 262 492 557
Performance Materials 82 80 73 85 93 48 72 71 77 76 304 319 284 295Basic Plastics & Feedstocks 22 13 4 40 81 99 93 83 101 115 121 79 356 392Corporate (21) (17) (15) (20) (23) (26) (21) (20) (25) (21) (107) (73) (90) (87)Adjusted EBITDA excl Inv Reval 83 77 62 104 151 122 144 133 153 169 318 326 550 600
Basic Plastics & Feedstocks 15 5 9 18 37 41 33 29 35 39 39 48 140 136Equity in earnings (losses) of affiliates 15 5 9 18 37 41 33 29 35 39 39 48 140 136
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