Trinseo Business Review

AGENDA

• Pricing Analysis

• Supplier Opportunities

• Market & Capacity Update

• Safety Moment

• Performance Metrics

• Quality Metrics

SAFETY MOMENT - FALL PROTECTION

A&R Global does not allow any vendors to access the top of railcars or trailers without proper fall protection

If fall protection is not readily available, drivers are expected to call their dispatch and speak with site personnel immediately

OSHA 1910 General Industry regulations require some form of fall protection for employees performing tasks at heights of four feet or more. Any unloading, loading, maintenance, or inspection activities on top of railcars and tankers are subject to the four-foot rule per OSHA regulations.

Historical Metrics

2016

2017

2018

2019

• 1,711 shipments

• 97.78% OTD

• $2.63M Spend

• Avg LOH - 301 miles

• Avg Transit Time - .75 days

• 1,743 shipments

• 98.30% OTD

• $3.14M Spend

• Avg LOH- 297 miles

• Avg Transit Time - .74 days

• 360 shipments

• 98.61% OTD

• $890K Spend

• Avg LOH- 301 miles

• Avg Transit Time - .75 days

• 1,638 shipments

• 98.28% OTD

• $2.16M Spend

• Avg LOH - 285 miles

• Avg Transit Time - .72 days

ON TIME DELIVERY METRICS

ON TIME DELIVERY METRICS - Q1 2019

PLANT & TERMINAL OVERVIEW

VOLUME & OTD METRICS

VOLUME & OTD METRICS

VOLUME & OTD METRICS

VOLUME & OTD METRICS

QUALITY

2018 FY Metics

• 16 QN's Entered
• 5 Carrier Caused

• Average Investigation - 2.5 days

• Zero Contaminations

• 1 Spill - Shipment 44351882

Q1 2019 Metrics

• 1 QN Entered

• Average Investigation - 1 day

• Zero Contaminations

• Zero Spills

PRICING BREAKDOWN - FY 2018

Not Included:

• Scale charges

• Spotting Fee's

• Tolls

• ORM Miles

PRICING BREAKDOWN - Q1 2019

Not Included:

• Scale charges

• Spotting Fee's

• Tolls

• ORM Miles

Supplier Opportunities

• Border Crossing Process

• A&R Global/Vendor solution

• Arkal - London, ON (Buckland)

• Est. Savings to Trinseo - ~$10,000

• Clinton, TN On-Site Scale

• Clinton, TN Rail Opportunities
• Cost Savings in Warren, Spartanburg
• Improved On Time Delivery

• Diversification of rail network/Outplants

Capacity & Market Update

• Ethylene pricing hit a 10 month low in November due to excess supply

• Steady polymer pricing is expected to lead to improved export opportunities

• Styrene import volumes dropped in Q1, leading to a tight supply in the U.S market

• Expected uptick in demand will lead to a tighter market than in Q4 and Q1 2019

• Carriers are requesting rate increases to help with driver retention & recruiting

• More vendors are leaning towards a regional approach to help get drivers home more often

Thank You For Your Business!

Heather Karakashian

Mgr. Service Delivery & Systems

989.839.8112

Chris Ball

President

804.513.5198

Kyle Roberts

Director of Operations

361.362.5953

Jenny Buffa

Operations Manager

989.839.8110

Jake Tendler

Commercial Manager

989.430.9610