https://www.avient.com/knowledge-base/article/polymer-services-frequency-asked-questions?rtype[]=1164
Thermoset materials are chemically cross-linked and cannot be reprocessed or recycled.
Thermoplastic materials are not molecularly cross-linked and can be reprocessed or recycled.
Common examples are polypropylene (PP), nylon (PA), polyketone (PK), and thermoplastic elastomers (TPE).
https://www.avient.com/sites/default/files/resources/Innovation%2520Day%2520-%2520May%25202014.pdf
Patterson
12:00-1:00 PM Lunch
PolyOne Corporation Page 7
PolyOne Commodity to Specialty
Transformation
• Volume driven,
commodity
producer
• Heavily tied to
cyclical end
markets
• Performance largely
dependent on non-
controlling joint
ventures
2000-2005 2006 - 2009 2010 – 2014
2015 and
beyond
• Steve Newlin
appointed,
Chairman,
President and CEO
• New leadership
team appointed
• Implementation of
four pillar strategy
• Focus on value
based selling,
investment in
commercial
resources and
innovation to drive
transformation
• 18 consecutive
quarters of double-
digit adjusted EPS
growth
• Shift to faster
growing, high
margin, less cyclical
end markets
• Key acquisitions
propel current and
future growth, as
well as margin
expansion
• Established
aggressive 2015
targets
• Continue specialty
transformation
• Targeting $2.50
adjusted EPS by
2015, nearly double
2013 EPS
• Drive double digit
operating income
and adjusted EPS
growth
PolyOne Corporation Page 8
Specialty
54%
PP&S
Distribution
28%
2013 Revenues: $3.8 Billion 2013 Revenues: $3.8 Billion
United
States
67%
Latin
America
$13
$31
$46 $46
$92 $96
$122
$195
$0
$50
$100
$150
$200
2006 2007 2008 2009 2010 2011 2012 2013
End Markets Specialty Operating Income
PolyOne At a Glance
Building &
9%
HealthCare
11% Appliance
Electronics &
Electrical
PolyOne Corporation Page 9
Old
PolyOne Transformation
*Operating Income excludes corporate charges and special items
2%
34%
43%
62% 64%
0%
20%
40%
60%
80%
100%
2005 2008 2010 2013 Q1 2014 2015
%
o
f
O
p
e
ra
ti
n
g
I
n
c
o
m
e
*
JV's Performance Products & Solutions Distribution Specialty
65-75%
Specialty OI $5M $46M $87M $195M $60M Target
Mix Shift Highlights Specialty Transformation
2015
Target
PolyOne Corporation Page 10
Confirmation of Our Strategy
The World’s Premier Provider of Specialized
Polymer Materials, Services and Solutions
Specialization Globalization
Operational
Excellence
Commercial
Excellence
PolyOne Corporation Page 11
-150.00%
-50.00%
50.00%
150.00%
250.00%
350.00%
450.00%
550.00%
PolyOne S&P 500
Strategy and Execution Drive Results
$0.12
$0.27
$0.21
$0.13
$0.68
$0.82
$1.00
$1.31
'06 '07 '08 '09 '10 '11 '12 '13
‘06-‘13 EPS CAGR = 41%
EPS Share Price vs.
Christopher Murphy
Vice President, Research and Development
Chief Innovation Officer
PolyOne Corporation Page 22
2 lbs Plastic
=
3 lbs aluminum
or
8 lbs steel
or
27 lbs glass
33% less material by weight
than aluminum
75% less material by weight
than steel
93% less material by weight
than glass
Requires 91% less energy
to recycle a pound of plastic
versus a pound of paper
Source: SPI: Sustainability and the Plastics Industry
Plastics: Key to Future Sustainable Development
PolyOne Corporation Page 23
Decreasing
Dependence on
Fossil Fuels
Globalizing
and Localizing
• Aging
population
• Longer life
expectancy
• Healthy living
• Aging in place
• Environmental
consciousness
• Alternative
energy
• Resource
efficiency
• Biotechnology
• Global
leader/local
expert with
customized
solutions
• Global OEMs
seeking one
standard of
service
everywhere
• Efficiency focus
• Reduced
size/weight
• Mass transit
• Alternative
materials
• Electric
vehicles
Protecting the
Environment
Improving
Health and
Wellness
Alignment with Megatrends
PolyOne Corporation Page 24
Innovation Drives Earnings Growth
$20
$53
2006 2013
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index
Progression*
*Percentage of Specialty Platform revenue from products introduced in last five years
14.3%
30.7%
2006 2013
Specialty Platform
Gross Margin %
19.5%
43.0%
2006 2013
PolyOne Corporation Page 25
Prototype Frame
Opportunity
Scale-up &
Test Market
Build
Business Case
Commercial
Launch
Phase
1
Phase
2
Phase
3
Phase
4
Phase
5
4
11
5
10
6
9
3 4 2
15
9
1
10
4
Breakthrough
Platform
Derivative
A Rich Pipeline of Opportunity
Number of Projects 25 14 19 17 18 93
Addressable Market
($ millions)
TBD TBD $800 $450 $450 $1,700
PolyOne Corporation Page 26
Recent Innovations
Aligned with Megatrends
in Key End Markets and
2015 Goals
Robert M.
https://www.avient.com/investor-center/news/avient-signs-agreement-divest-distribution-business-hig-capital-950-million
Unique technologies that improve the recyclability of products and enable recycled content to be incorporated, thus advancing a more circular economy
https://www.avient.com/investor-center/news/avient-completes-acquisition-dsm-protective-materials-dyneema
Unique technologies that improve the recyclability of products and enable recycled content to be incorporated, thus advancing a more circular economy
https://www.avient.com/investor-center/news/avient-appoints-ashish-k-khandpur-chief-executive-officer-effective-december-1-2023
Unique technologies that improve the recyclability of products and enable recycled content to be incorporated, thus advancing a more circular economy
https://www.avient.com/investor-center/news/avient-increases-dividend-12
Unique technologies that improve the recyclability of products and enable recycled content to be incorporated, thus advancing a more circular economy
https://www.avient.com/investor-center/news/advanced-composites-avient-lightweighting-solutions-fuel-efficiency
Polystrand™ panels are featured in all-composite medium-duty trucks and trailers that reduce weight by 45 percent versus traditional materials and are completely recyclable.
Breakthrough technologies that minimize wastewater and improve the recyclability of materials and packaging across a spectrum of end uses
https://www.avient.com/news/avient-and-virginia-tech-collaborate-industrial-design-students-challenged-automotive-aftermarket-part-competition
Unique technologies that improve the recyclability of products and enable recycled content to be incorporated, thus advancing a more circular economy
https://www.avient.com/knowledge-base/article/developing-your-esg-framework?sust[]=1133
Sector standards: guidelines for the various applications that use an organization's products, such as energy consumption, raw material sourcing, or any recycling efforts.
Ensuring that facilities and equipment are equipped to recycle or reuse water or waste.
https://www.avient.com/knowledge-base/article/developing-your-esg-framework
Sector standards: guidelines for the various applications that use an organization's products, such as energy consumption, raw material sourcing, or any recycling efforts.
Ensuring that facilities and equipment are equipped to recycle or reuse water or waste.