https://www.avient.com/investors/events-presentations?page=7
PolyOne IR Presentation - GS - 5/21/14 - w Non GAAP
https://www.avient.com/sites/default/files/2022-02/Additives and Colorants for Stadium and Arena Seats Application Bulletin.pdf
COLOR RAL REFERENCE COLOR RAL REFERENCE 1015 Brown/12 6026 Green/14 1034 Yellow/14 6032 Green/20 1018 Yellow/19 7004 Grey/21 1003 Yellow/20 8025 Brown/14 3020 Red/15 9022 Pearl Grey/1 5005 Blue/35 9010 White/5 5000 Blue/36
https://www.avient.com/sites/default/files/2020-09/oncolor-hc-product-bulletin-1.pdf
KEY CHARACTERISTICS • Polymer colorants formulated specifically for healthcare product applications • Meets and exceeds various material performance requirements including FDA 21 CFR, ISO 10993 and USP Class VI • HC Plus colorants certified for bio-compatibility • Available as pre-color, concentrate, masterbatch or Smartbatch™ combined colorant/additive solution • Wide range of colors, striking special effects and custom color matching MARKETS AND APPLICATIONS OnColor™ HC and HC Plus Colorants are an excellent choice for medical devices and parts, pharmaceutical or cosmetic packaging, and many other healthcare related polymer applications.
https://www.avient.com/products/advanced-composites/continuous-fiber-composite-tape-laminates-and-barstock/polystrand-continuous-fiber-tapes-laminates
Heat.
https://www.avient.com/sites/default/files/2023-11/AVNT November IR Presentation.pdf
PRIOR YEAR $790 $710 2022 2023 $107 $112 2022 2023 Sales Adjusted EBITDA (in millions) $0.42 $0.47 2022 PF 2023 Adjusted EPS (in millions) - 10% + 5% + 12% Sales Adjusted EBITDA Adjusted EPS 16 $112 $500 Q4 FY $0.47 $2.30 Q4 FY Q4 AND FULL YEAR 2023 GUIDANCE $710 $3,130 Q4 FY Sales Adjusted EBITDA Adjusted EPS 17 (in millions) (in millions) Guidance: Free Cash Flow $180 $180 Prior Guidance Guidance FREE CASH FLOW & INCREASED DIVIDEND 13th Consecutive Dividend Increase 0.16 0.26 0.42 0.58 0.79 0.85 0.99 1.03 2011 2013 2015 2017 2019 2021 2023 2024 18 S U S TAI NABI L I T Y DAY RE CAP SUSTAINABILITY AS A GROWTH DRIVERLONG-TERM REVENUE GROWTH DRIVERS 60%+ Key Growth Drivers Sustainable Solutions Composites, Healthcare, Asia / LATAM Overlap Other (GDP Growth) Total Company Revenue Growth Drivers Long-Term Growth Rate Sustainable Solutions 8–12% Composites 8–10% Healthcare 8–10% Asia / LATAM 5% Other (GDP growth) 0–2% Avient 6% 20 SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH 8-12% Long Term Growth 50 90 2022 2030 Medical Plastics Market Size (in $Billions) 2020 2030 Recycled Plastics Virgin Plastics Growing Demand for Recycled Content Avient Sustainable Solutions 18 46 2023 2032 Global Offshore Annual Wind Installations (in Gigawatts) Sources: McKinsey, Bloomberg, Grand View Research SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH 21 • Transformative acquisitions combined with divestitures of more cyclical businesses have improved margins over 400 bps since 2018 • 20% long-term margin goal to be driven by key growth drivers, with sustainable solutions playing a meaningful role 5.4% 11.5% 16.0% 2006 2018 2023E Recovery Growth Drivers Strategic Objective 20%+ +1%+ +3%+ ADJUSTED EBITDA MARGIN EXPANSION 22 • 6% annualized long-term sales growth leveraging sustainable solutions, composites, healthcare, and emerging regions • Expand EBITDA margins to 20% • Deliver annual EBITDA and EPS growth of 10% and 15% • Maintain asset-light, 80% free cash flow conversion profile and be valued as a specialty formulator • Continue fostering our Great Place to Work® culture CREATING A WORLD-CLASS SUSTAINABLE ORGANIZATION 23 PEER COMPARISONS AVIENT IS ASSET LIGHT Capex / Revenue 2023E (%) Avient Specialty Formulators Other Specialty / Chemical Companies Source: Peer data per Bloomberg as of October 27, 2023 Note: Avient reflects 2023 estimated revenue of $3,130 and estimated run-rate CAPEX of $110M. 26 3.5 1.8 2.7 3.0 3.4 3.7 2.8 3.7 4.6 5.0 6.9 7.0 8.6 11.1 Av ie nt KW R FU L PP G AV Y R PM FM C H U N C E EC L AS H H XL EM N SC L FREE CASH FLOW CONVERSION Source: Peer data per Bloomberg as of October 27, 2023 Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
Avient 2011, 2018 and 2021 multiples reflect trailing 12 months EBITDA at December 31. 28 EV / 2023E EBITDA 6.5 8.5 11.0 8.9 12.0 11.9 10.9 9.9 8.2 16.3 13.8 11.9 9.6 9.5 9.5 9.2 7.7 20 11 20 18 20 21 O ct 20 23 AV Y R PM PP G KW R FU L EC L H XL SC L AS H FM C C E H U N EM N Avient Historic Multiple Avient Specialty Formulators Other Specialty / Chemical Companies AP P E N DI X 30 Performance Additives 16% Pigments 12% TiO2 10% Dyestuffs 2% Polyethylene 11% Nylon 6% Polypropylene 5% Styrenic Block Copolymer 5% Other Raw Materials 33% ~40% hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials 2022 pro forma results for the acquisition of Avient Protective Materials RAW MATERIAL BASKET SEGMENT DATA U.S. & Canada 40% EMEA 37% Asia 18% Latin America 5% 2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 20% Packaging 24% Industrial 15% Building and Construction 10% Telecommunications 4% Energy 4% Defense 6% END MARKET REVENUE $2,355M $402M $1,300M $272M Sales EBITDA Specialty Engineered Materials Color Additives and Inks $592M$3,653M (1) Transportation 9% Healthcare 8% 32 (1) Total company sales and adjusted EBITDA of $3,653M and $592M, respectively, include intercompany sales eliminations and corporate costs 2022 REVENUE | $2 .4 BILLION US & Canada 34% EMEA 38% Asia 20% Latin America 8% END MARKET REGION 33 Packaging 34% Consumer 21% Healthcare 8% Industrial 15% Transportation 8% Building & Construction 11% Telecommunications 1% Energy 2% COLOR, ADDITIVES & INKS 2022 PRO FORMA REVENUE | $1 .3 BILLION US & Canada 52% EMEA 35% Asia 13% 34 Packaging 5% Consumer 19% Healthcare 8%Industrial 16% Transportation 10% Telecommunications 10% Energy 9% Defense 15% Building & Construction 8% END MARKET REGION SPECIALTY ENGINEERED MATERIALS Packaging 32% Consumer 27% Healthcare 8% Industrial 14% Building & Construction 5% Telecommunications 3% Energy 1% Defense 1% Asia (18% of sales) Transportation 9% 2022 PROFORMA AVIENT REGIONAL SALES Packaging 27% Consumer 14% Healthcare 5% Industrial 17% Building & Construction 10% Energy 5% Defense 8% EMEA (37% of sales)Transportation 11% Packaging 13% Consumer 24% Healthcare 12% Industrial 15% Building & Construction 13% Energy 5% Defense 5% US & Canada (40% of sales) Transportation 7% Packaging 56% Consumer 23% Healthcare 4% Industrial 7% Building & Construction 4% Telecommunications 1% LATAM (5% of sales) Transportation 5% Telecommunications 3% Telecommunications 6% 35 BY END MARKET Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special items, to assess performance and facilitate comparability of results.
Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Reconciliation to Condensed Consolidated Statements of Income: $ EPS $ EPS Net income (loss) from continuing operations attributable to Avient shareholders $ 5.1 $ 0.06 $ (27.4) $ (0.30) Special items, after tax 32.0 0.35 68.3 0.75 Amortization expense, after-tax 15.2 0.16 $ 13.4 $ 0.14 Adjusted net income / EPS $ 52.3 $ 0.57 $ 54.3 $ 0.59 Three Months Ended September 30, Reconciliation to EBITDA and Adjusted EBITDA: 2023 2022 Sales - GAAP $ 753.7 $ 823.3 Pro Forma APM adjustments — 60.7 Pro forma adjusted sales $ 753.7 $ 884.0 Net income from continuing operations – GAAP $ 5.1 $ (27.8) Income tax (benefit) expense (0.1) (1.2) Interest expense, net 30.3 37.3 Depreciation and amortization 46.4 39.8 EBITDA from continuing operations $ 81.7 $ 48.1 Special items, before tax 43.2 82.0 Interest expense included in special items (2.2) (10.0) Depreciation and amortization included in special items — (0.8) Adjusted EBITDA $ 122.7 $ 119.3 Pro forma APM adjustments — 17.2 Pro forma adjusted EBITDA $ 122.7 $ 136.5 Pro forma adjusted EBITDA as a % of sales 16.3 % 15.4 % 1 Year Ended December 31, Reconciliation to EBITDA and Adjusted EBITDA: 2006 2018 Sales $ 2,622.4 $ 3,533.4 Net income from continuing operations – GAAP $ 133.5 $ 160.8 Income tax expense 29.7 36.4 Interest expense, net 63.1 62.8 Depreciation and amortization 57.1 91.5 EBITDA from continuing operations $ 283.4 $ 351.5 Special items, before tax (34.0) 59.5 Depreciation and amortization included in special items — (3.0) JV - equity income (107.0) — Adjusted EBITDA $ 142.4 $ 408.0 Adjusted EBITDA as a % of sales 5.4 % 11.5 % Reconciliation to EBITDA and Adjusted EBITDA: Three Months Ended December 31, 2022 Net loss from continuing operations – GAAP $ (16.6) Income tax benefit (60.8) Interest expense, net 49.4 Depreciation and amortization 48.6 EBITDA from continuing operations $ 20.6 Special items, before tax 104.3 Interest expense included in special items (16.0) Depreciation and amortization included in special items (1.5) Adjusted EBITDA $ 107.4 Reconciliation of Pro Forma Adjusted Earnings per Share: Three Months Ended December 31, 2022 Net loss from continuing operations attributable to Avient shareholders $ (17.0) Special items, after tax 38.3 Amortization expense, after-tax 14.6 Adjusted net income from continuing operations excluding special items 35.9 Pro forma adjustments* 2.5 Pro forma adjusted net income from continuing operations attributable to Avient shareholders $ 38.4 Weighted average diluted shares 91.7 Pro forma adjusted EPS - excluding special items pro forma for APM acquisition $ 0.42 * Pro forma adjustment to reflect APM results for the period before Avient ownership including the impacts of debt financing and paydown of debt with net proceeds from the Distribution sale. 2 AVNT November IR Presentation (11.3) 3PM Avient corporation�investor presentation DISCLAIMER Slide Number 3 Creating a world-class�sustainable organization Top-tier sustainability performance�and recognition What we do: We are a formulator Slide Number 7 Avient protective materials �First Year Slide Number 9 Slide Number 10 Slide Number 11 Slide Number 12 Slide Number 13 Slide Number 14 Slide Number 15 Slide Number 16 Slide Number 17 Slide Number 18 Slide Number 19 Slide Number 20 Slide Number 21 Slide Number 22 Slide Number 23 Slide Number 24 Slide Number 25 Avient is asset light Free cash flow conversion Multiple expansion Slide Number 29 Slide Number 30 Slide Number 31 2022 pro forma segment, end market and Geography Color, Additives & Inks Specialty Engineered Materials Slide Number 35 IR Deck - AVNT-2023.09.30 Non GAAP Recs Attachment
https://www.avient.com/sites/default/files/2021-09/avnt-q2-2021-earnings-presentation.pdf
Develop and implement solutions to end plastic waste while supporting AEPW $1.5B investment in key initiatives. 2030 SUSTAINABILITY TARGETS 20 2021 AVIENT INVESTOR DAY 21 • Investor Day to be held December 9, 2021 in New York, NY • Company will provide updates on its key growth drivers with a deep focus on sustainable solutions Revenue Growth Drivers Long-Term Growth Rate Sustainable Solutions 8–12% Healthcare 8–10% Composites / 5G 10% Growth in Asia / LATAM 5% Other (GDP growth) 2–3% Avient 6.5% • Senior leadership team to also present on Clariant MB integration, M&A opportunities and capital allocation priorities PEER COMPARISONS 22 As a specialty formulator, we don’t require significant capital investment, as compared to the base resin raw material suppliers we purchase from.
APPENDIX Performance Additives 15% Pigments 15% TiO2 12% Dyestuffs 4%Polyethylene 10% Nylon 5% Polypropylene 4% Other Raw Materials 29% Styrenic Block Copolymer 6% ~1/3 hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials 28 • In Q2 2021, several raw material markets experienced significant price inflation and tight inventory o Average cost of hydrocarbon based materials was up 45% year-over-year and 20% sequentially o Average cost of non-hydrocarbon based materials was up 10% year-over-year and 8% sequentially • Additionally, we experienced other supply chain challenges during Q2 related to raw material spot purchases, freight constraints and productivity loss as a result of these shortages Annual Purchases RAW MATERIAL AND SUPPLY CHAIN UPDATE Based on 2020 pro forma purchases, excludes Distribution business SEGMENT DATA U.S. & Canada 50% EMEA 26% Asia 16% Latin America 8% 2021 YTD SEGMENT, END MARKET AND GEOGRAPHY 30 GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 23% Packaging 20% Industrial 16% Building and Construction 9% Telecommunications 4% Energy 2% END MARKET REVENUE (1) Total company sales and EBITDA of $2,398M and $320M, respectively, include intercompany sales eliminations and corporate costs All charts reflect YTD financials through June 30 $1,234M $228M $457M $87M $767M $48M Sales EBITDA Distribution Specialty Engineered Materials Color Additives and Inks $320M$2,398M (1) Transportation 12% Healthcare 14% Packaging 34% Consumer 21% Healthcare 7% Industrial 16% Building & Construction 10% Transportation 9% Energy 2% Telecommunications 1% C O L O R , A D D I T I V E S & I N K S 2021 YTD REVENUE | $1 .2 BILL ION US & Canada 31% EMEA 42% Asia 21% Latin America 6% END MARKET REGION 31 All charts reflect 2021 YTD financials through June 30 S P E C I A LT Y E N G I N E E R E D M AT E R I A L S Consumer 28% Healthcare 10% Packaging 6% Telecommunications 16% Industrial 12% Transportation 11% Building & Construction 10% Energy 7% 2021 YTD REVENUE | $457 MILLION END MARKET US & Canada 54% EMEA 26% Asia 20% REGION 32 All charts reflect 2021 YTD financials through June 30 DI S TR IBU T I ON Healthcare 27% Consumer 22% Packaging 5% Industrial 20% Transportation 16% Building and Construction 8% Energy 1% Telecommunications 1% US & Canada 81% Asia 4% Latin America 15% END MARKET REGION K E Y S U P P L I ER S 2021 YTD REVENUE | $767 MILLION 33 All charts reflect 2021 YTD financials through June 30 TOTA L C O M PA N Y R E G I O N A L S A L E S BY END MARKET Packaging 30% Consumer 27%Healthcare 11% Industrial 15% Building & Construction 5% Telecommunications 2% Energy 2% Asia (16% of sales) Transportation 8% Packaging 32% Consumer 13% Healthcare 5% Industrial 18% Building & Construction 11% Telecommunications 5% Energy 4% EMEA (26% of sales) Transportation 12% 34 Consumer 25% Healthcare 19% Packaging 11% Industrial 16% Building & Construction 10% Telecommunications 4% Energy 2% US & Canada (50% of sales) Transportation 13% Packaging 40% Consumer 33% Healthcare 4% Industrial 10% Building & Construction 5% Telecommunications 1% LATAM (8% of sales) Transportation 7% All charts reflect 2021 YTD financials through June 30 Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Three Months Ended June 30, 2021 Reconciliation to Condensed Consolidated Statements of Income GAAP Results Special Items Adjusted Results Operating income $ 108.1 $ 14.2 $ 122.3 Income from continuing operations before income taxes $ 89.8 $ 14.2 $ 104.0 Income tax expense - GAAP (20.4) — (20.4) Income tax impact of special items — (3.4) (3.4) Tax adjustments — 0.9 0.9 Net income attributable to noncontrolling interests (0.6) — (0.6) Net income from continuing operations attributable to Avient shareholders $ 68.8 $ 11.7 $ 80.5 Net income / EPS $ 0.74 $ 0.13 $ 0.87 Weighted-average diluted shares 92.4 92.4 92.4 Three Months Ended September 30, 2020 Reconciliation to Condensed Consolidated Statements of Income GAAP Results Special Items Adjusted Results Operating income $ 33.5 $ 40.4 $ 73.9 Income from continuing operations before income taxes $ 5.3 $ 50.0 $ 55.3 Income tax expense - GAAP (2.7) — (2.7) Income tax impact of special items — (12.7) (12.7) Tax adjustments — 3.0 3.0 Net income attributable to noncontrolling interests (0.9) — (0.9) Net income from continuing operations attributable to Avient shareholders $ 1.7 $ 40.3 $ 42.0 Net income / EPS $ 0.02 $ 0.44 $ 0.46 Weighted-average diluted shares 91.9 91.9 91.9 Three Months Ended Year Ended December 31, Reconciliation to Pro Forma Adjusted EBITDA June 30, 2021 March 31, 2021 June 30, 2020 2020 2019 Net income from continuing operations – GAAP $ 69.4 $ 79.7 $ 23.4 $ 133.8 $ 75.7 Income tax expense 20.4 22.9 7.9 5.2 33.7 Interest expense 19.5 19.3 16.2 74.6 59.5 Depreciation and amortization from continuing operations 33.8 37.1 20.9 115.0 78.1 EBITDA $ 143.1 $ 159.0 $ 68.4 $ 328.6 $ 247.0 Special items, before tax 14.2 2.4 2.4 66.2 61.7 Interest expense included in special items — — (0.5) (10.1) — Depreciation and amortization included in special items 1.4 (0.5) (1.2) (3.2) — Adjusted EBITDA $ 158.7 $ 160.9 $ 69.1 $ 381.6 $ 308.7 Clariant MB pro forma adjustments(1) — — 37.0 75.1 133.2 Pro forma adjusted EBITDA $ 158.7 $ 160.9 $ 106.1 $ 456.7 $ 441.9 (1) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition 1 Reconciliation of EBITDA by Segment Three Months Ended June 30, Six Months Ended June 30, Year Ended December 31, 2021 2020 2021 2020 2019 2018 Sales: Color, Additives and Inks $ 624.4 $ 226.8 $ 1,233.7 $ 483.3 $ 1,502.9 $ 1,003.8 Specialty Engineered Materials 240.6 158.8 457.1 344.1 708.8 745.7 Distribution 404.4 238.8 767.1 528.3 1,110.3 1,192.2 Corporate and eliminations (34.2) (15.3) (60.4) (35.1) (79.9) (79.0) Sales $ 1,235.2 $ 609.1 $ 2,397.5 $ 1,320.6 $ 3,242.1 $ 2,862.7 Operating income: Color, Additives and Inks $ 86.3 $ 32.3 $ 175.1 $ 180.8 $ 147.4 $ 158.5 Specialty Engineered Materials 37.3 17.0 71.5 94.4 83.7 72.3 Distribution 23.7 14.6 47.7 69.5 75.4 71.5 Corporate and eliminations (39.2) (25.9) (65.8) (155.4) (149.7) (123.7) Operating income $ 108.1 $ 38.0 $ 228.5 $ 189.3 $ 156.8 $ 178.6 Items below OI in Corporate: Other income, net $ 1.2 $ 9.5 $ 2.7 $ 24.3 $ 12.1 $ (12.9) Depreciation & amortization: Color, Additives and Inks $ 25.3 $ 10.6 $ 52.6 $ 75.1 $ 42.7 $ 44.3 Specialty Engineered Materials 8.1 7.6 15.9 30.0 29.5 23.2 Distribution 0.2 0.1 0.4 0.7 0.5 0.7 Corporate and eliminations 0.2 2.6 2.0 9.2 5.4 4.4 Depreciation & Amortization $ 33.8 $ 20.9 $ 70.9 $ 115.0 $ 78.1 $ 72.6 EBITDA: Color, Additives and Inks $ 111.6 $ 42.9 $ 227.7 $ 255.9 $ 190.1 $ 202.8 Specialty Engineered Materials 45.4 24.6 87.4 124.4 113.2 95.5 Distribution 23.9 14.7 48.1 70.2 75.9 72.2 Corporate and eliminations (39.0) (23.3) (63.8) (146.2) (144.3) (119.3) EBITDA $ 143.1 $ 68.4 $ 302.1 $ 328.6 $ 247.0 $ 238.3 EBITDA as a % of Sales: Color, Additives and Inks 17.9 % 18.9 % 18.5 % 17.0 % 18.9 % 19.4 % Specialty Engineered Materials 18.9 % 15.5 % 19.1 % 17.6 % 15.2 % 14.8 % Distribution 5.9 % 6.2 % 6.3 % 6.3 % 6.4 % 5.7 % 2 Reconciliation of Pro Forma EBITDA - Color, Additives and Inks Three Months Ended June 30, Six Months Ended June 30, Year Ended December 31, 2021 2020 2021 2020 2019 2018 Sales: Color, Additives and Inks $ 624.4 $ 226.8 $ 1,233.7 $ 1,502.9 $ 1,003.8 $ 1,046.5 Clariant MB pro forma adjustments(1) — 261.1 — 540.4 1,118.6 1,209.8 Pro forma sales $ 624.4 $ 487.9 $ 1,233.7 $ 2,043.3 $ 2,122.4 $ 2,256.3 Operating income: Color, Additives and Inks $ 86.3 $ 32.3 $ 175.1 $ 180.8 $ 147.4 $ 158.5 Clariant MB pro forma adjustments(1) — 22.0 — 45.0 72.9 80.3 Pro forma operating income $ 86.3 $ 54.3 $ 175.1 $ 225.8 $ 220.3 $ 238.8 Depreciation & amortization: Color, Additives and Inks $ 25.3 $ 10.6 $ 52.6 $ 75.1 $ 42.7 $ 44.3 Clariant MB pro forma adjustments(1) — 15.0 — 30.1 60.3 61.2 Pro forma depreciation & amortization $ 25.3 $ 25.6 $ 52.6 $ 105.2 $ 103.0 $ 105.5 EBITDA Color, Additives and Inks $ 111.6 $ 42.9 $ 227.7 $ 255.9 $ 190.1 $ 202.8 Clariant MB pro forma adjustments(1) — 37.0 — 75.1 133.2 141.5 Pro forma EBITDA $ 111.6 $ 79.9 $ 227.7 $ 331.0 $ 323.3 $ 344.3 Pro forma EBITDA as a % of Sales 17.9 % 16.4 % 18.5 % 16.2 % 15.2 % 15.3 % (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition Three Months Ended June 30, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient Sales $ 609.1 $ — $ 609.1 $ 261.1 $ 870.2 Operating income $ 38.0 $ 9.0 $ 47.0 $ 22.0 $ 69.0 Interest expense, net (16.2) — (16.2) (5.3) (21.5) Other income, net 9.5 (6.6) 2.9 — 2.9 Income taxes (7.9) 0.2 (7.7) (3.8) (11.5) Net income attributable to noncontrolling interests (0.4) — (0.4) — (0.4) Net income from continuing operations attributable to Avient shareholders $ 23.0 $ 2.6 $ 25.6 $ 12.9 $ 38.5 Weighted average diluted shares 91.8 Pro forma adjusted EPS $ 0.42 (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 3 Year Ended December 31, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient Sales $ 3,242.1 $ — $ 3,242.1 $ 540.4 $ 3,782.5 Operating income $ 189.3 $ 73.7 $ 263.0 $ 45.0 $ 308.0 Interest expense, net (74.6) 10.1 (64.5) (18.1) (82.6) Other income, net 24.3 (17.6) 6.7 — 6.7 Income taxes (5.2) (41.4) (46.6) (6.2) (52.8) Net income attributable to noncontrolling interests (1.8) — (1.8) — (1.8) Net income from continuing operations attributable to Avient shareholders $ 132.0 $ 24.8 $ 156.8 $ 20.7 $ 177.5 Weighted average diluted shares 90.6 Impact to diluted shares from January 2020 equity offering 1.5 Pro forma weighted average diluted shares 92.1 Pro forma adjusted EPS $ 1.93 (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition Year Ended December 31, 2019 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient Sales $ 2,862.7 $ — $ 2,862.7 $ 1,118.6 $ 3,981.3 Operating income $ 156.8 $ 71.7 $ 228.5 $ 72.9 $ 301.4 Interest expense, net (59.5) — (59.5) (33.4) (92.9) Other income, net 12.1 (10.0) 2.1 — 2.1 Income taxes (33.7) (5.9) (39.6) (9.1) (48.7) Net income attributable to noncontrolling interests (0.2) — (0.2) — (0.2) Net income from continuing operations attributable to Avient shareholders $ 75.5 $ 55.8 $ 131.3 $ 30.4 $ 161.7 Weighted average diluted shares 77.7 Impact to diluted shares from January 2020 equity offering 15.3 Pro forma weighted average diluted shares 93.0 Pro forma adjusted EPS $ 1.74 (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 4 AVNT Q2 2021 Earnings Presentation - Website NEW.pdf AVNT Q2 2021 Earnings Presentation - Website.pdf Final - 7.19 1158am Q2 21 IR Deck Version v2
https://www.avient.com/sites/default/files/2023-03/AVNT Q2 2022 Earnings Presentation - Website Version.pdf
S EC O N D Q UART ER 2022 RE S U LTS $122 $134 2021 2022 $0.87 $0.98 2021 2022 Q2 2022 PERFORMANCE (TOTAL COMPANY) 4 Sales Adjusted Operating Income $1,235 $1,302 2021 2022 + 5% Adjusted EPS + 10% + 13% (in millions) (in millions) (+ 10% excluding FX) (+ 16% excluding FX) (+ 20% excluding FX) Q2 2022 SEGMENT PERFORMANCE 5 CAI $624 $649 Sales ($ in millions) SEM Distribution $86 $94 Operating Income + 4% + 9% $404 $443 Sales $24 $27 Operating Income + 10% + 13% (1) $241 $244 Sales $37 $37 Operating Income + 1% Flat (+ 10% excluding FX) (+ 16% excluding FX) (+ 6% excluding FX) (+ 3% excluding FX) Q2 2021 $1,235 $122 Sustainable Solutions 17 7% 7 Healthcare 23 14% 5 Composites (ex Outdoor High Performance) 10 20% 4 Growth in Asia / LATAM 5 3% 1 Other 69 11% 5 Sub-total $1,359 10% $144 Outdoor High Performance Impact (9) (5) Wage Inflation and Overtime (7) Other Supply Chain Costs (2) Clariant Color Integration Synergies 7 Incentives, Other Employee Costs 4 FX (48) (7) Q2 2022 $1,302 5% $134 Q2 2022 SALES AND OPERATING INCOME (TOTAL COMPANY) 6 Sales Growth Rate Adjusted Operating Income$ millions Adjusted EBITDA Q2 EBITDA BRIDGE 7 Price increases more than offsets raw material and supply chain impacts Q2 2021 $ 159 Demand (29) $ millions CAI: Price / Mix 87 Inflation (58) SEM: Price / Mix 36 Inflation (24) Distribution: Price / Mix 45 Inflation (41) Net Price Benefit 45 Wage Inflation and Overtime (7) Other Supply Chain Costs (2) Clariant Color Integration Synergies 7 Incentives, Other Employee Costs 4 FX (7) Q2 2022 $ 170 China Lockdowns / Russia Impact $ (14) Outdoor High Performance (5) Transportation (5) 8 Q2 '21 Adjusted EPS 0.87$ Color, Additives and Inks 0.11 Specialty Engineered Materials 0.01 Distribution 0.03 Corporate Costs 0.01 F/X (0.05) Segment OI 0.11$ Interest Expense 0.03 Tax Rate (0.03) Q2 '22 Adjusted EPS 0.98$ Q2 EPS BRIDGE Key Updates • Provided progress on 2030 Sustainability Goals • Emphasized commitment to U.N.
EPS (ex Amort) 3.96$ 0.13$ 4.09$ (0.58)$ 3.51$ Pro Forma Leverage (12/31/2022E) Net Debt / Adjusted EBITDA 1.6x 3.4x 2.8x Forecast Dyneema Forecast + Dyneema Sale of Distribution Pro Forma 2022 TWO-YEAR LEVERAGE MODEL 16 3.5x 2.7x 1.6x 2.8x 2.4x 2.0x 2019PF 2020PF 2022E 2022PF 2023E 2024E Dyneema® AcquisitionClariant Color Acquisition (1) Pro forma for the acquisition of the Clariant Color business (2) Pro forma for the acquisition of Dyneema® and potential divestiture of Distribution, including repayment of senior notes due 2023 and Term Loan (1) (1) (2) OUR SPECIALTY JOURNEY CONTINUES 17 • Dyneema® brings leading technology and brand with the World’s Strongest Fiber™, deep history of application development and strong management team focused on specialty applications • Dyneema® transaction is aligned with our previously stated acquisition goal of expanding our composites and fiber capabilities • Similar to our other technology expansion acquisitions, Dyneema® allows us to leverage our invest-to-grow strategy • The possible sale of our Distribution business also presents potential benefits with respect to leverage and EBITDA margins 7% 46% 66% 86% 100% 0% 20% 40% 60% 80% 100% 2005 2010 2015 2021 2022 PF % o f A dj u st ed E B IT D A (1 ) JVs Distribution Performance Products & Solutions Specialty (1) Adjusted EBITDA is EBITDA excluding corporate costs and special items (2) Pro forma for the acquisition of Dyneema® and potential divestiture of Distribution (2) Healthcare 4% Packaging 8% Consumer 10% Building & Construction 43% Industrial 15% Transportation 14% Energy 4% Telecom. 2% 2006 2022 Pro forma Healthcare 8% Packaging 23% Consumer 21% Building & Construction 10% Industrial 15% Transportation 9% Energy 4% Telecom. 4% Defense 6% END MARKET TRANSFORMATION TO LESS CYCLICAL INDUSTRIES ( W IT H DY N E E MA, E X .
Annual Purchases RAW MATERIAL AND SUPPLY CHAIN UPDATE Based on 2021 purchases, excludes Distribution business SEGMENT DATA U.S. & Canada 50% EMEA 25% Asia 16% Latin America 9% 2021 SEGMENT, END MARKET AND GEOGRAPHY GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 23% Packaging 19% Industrial 16% Building and Construction 10% Telecommunications 4% Energy 2% END MARKET REVENUE (1) Total company sales and adjusted EBITDA of $4,819M and $581M, respectively, include intercompany sales eliminations and corporate costs $2,402M $409M $919M $164M $1,631M $94M Sales EBITDA Distribution Specialty Engineered Materials Color Additives and Inks $581M$4,819M (1) Transportation 11% Healthcare 15% 24 Packaging 34% Consumer 21% Healthcare 8% Industrial 16% Building & Construction 10% Transportation 9% Energy 1% Telecommunications 1% C O L O R , A D D I T I V E S & I N K S 2021 REVENUE | $2 .4 BILL ION US & Canada 32% EMEA 40% Asia 21% Latin America 7% END MARKET REGION 25 All charts reflect 2021 financials S P E C I A LT Y E N G I N E E R E D M AT E R I A L S Consumer 27% Healthcare 10% Packaging 7% Telecommunications 16% Transportation 11% Industrial 11% Building & Construction 11% Energy 7% 2021 REVENUE | $919 MILLION END MARKET US & Canada 55% EMEA 25% Asia 20% REGION 26 All charts reflect 2021 financials D I S T R I BU T I O N Healthcare 26% Consumer 23% Packaging 5% Industrial 20% Transportation 16% Building and Construction 8% Energy 1% Telecommunications 1% US & Canada 80% Asia 3% Latin America 17% END MARKET REGION K E Y S U P P L I ER S 2021 REVENUE | $1 .6 B ILL ION 27 All charts reflect 2021 financials TOTA L C O M PA N Y R E G I O N A L S A L E S BY END MARKET Packaging 30% Consumer 26%Healthcare 13% Industrial 14% Building & Construction 5% Telecommunications 2% Energy 2% Asia (16% of sales) Transportation 8% Packaging 32% Consumer 13% Healthcare 5% Industrial 17% Building & Construction 12% Telecommunications 5% Energy 4% EMEA (25% of sales) Transportation 12% 28 Consumer 25% Healthcare 19% Packaging 10% Industrial 17% Building & Construction 10% Telecommunications 4% Energy 2% US & Canada (50% of sales) Transportation 13% Packaging 38% Consumer 33% Healthcare 8% Industrial 10% Building & Construction 5% Telecommunications 1% LATAM (9% of sales) Transportation 5% All charts reflect 2021 financials Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special items, to assess performance and facilitate comparability of results.
https://www.avient.com/sites/default/files/2020-09/sustainabilityreport2018.pdf
Novo Hamburgo, Brazil Seabrook, Texas (1) 21.
Novo Hamburgo, Brazil Seabrook, Texas (1) 21.
While LED light bulbs can use up to 80 percent less energy than incandescent bulbs, and last more than 20 years, they generate a substantial amount of heat that must be dissipated with a heat sink.
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Investor Day POLYONE I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 1 8 FORWARD LOOKING STATEMENTS PolyOne Corporation 2 • • • • • • • • • USE OF NON-GAAP MEASURES PolyOne Corporation 3 • • • V I S I O N PolyOne Corporation 4 To be the world’s premier provider of specialized polymer materials, services and solutions C O R E V A L U E S P E R S O N A L V A L U E S Honesty IntegrityRespect Operational Excellence Commercial Excellence Specialization Globalization Collaboration ExcellenceInnovation To be the world’s premier provider of specialized polymer materials, services and solutions S A F E T Y F I R S T PolyOne Corporation 5 1.3 1.1 1.1 0.85 0.65 0.57 0.54 0.97 0.84 0.74 0.74 0.69 0.57 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD Injuries per 100 Workers Spartech Acquisition PolyOne Corporation 6 P O L Y O N E 2 0 1 7 R E V E N U E | $ 3 . 2 B I L L I O N Transportation 18% Industrial 16% Consumer 12% Packaging 11% Healthcare 11% Wire & Cable 9% Appliance 5% United States 59% Europe 14% Asia 10% Latin America 9% Canada 8% PolyOne Distribution 34% Performance Products & Solutions 21% Specialty Engineered Materials 19% Color Additives & Inks 26% Segment End Market Geography Building & Construction 12% Electrical & Electronics 6% 2009 2010 2011 2012 2013 2014 2015 2016* 2017* P R O O F O F P E R F O R M A N C E C O N S E C U T I V E Y E A R S PolyOne Corporation 7 8 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.06 $2.21 2006 2017 “Where we were” “Where we are” ROIC** 5.0% 14.0% Operating Income % of Sales Color, Additives & Inks 1.7% 15.5% Specialty Engineered Materials 1.1% 12.1% Performance Products & Solutions 4.3% 10.7% Distribution 2.6% 6.3% A D J U S T E D E P S E X P A N S I O N S U S T A I N A B L E P A T H T O D O U B L E - D I G I T E P S G R O W T H PolyOne Corporation 8 P E O P L E P R O D U C T S P L A N E T P E R F O R M A N C E Double digit annual EPS growth strategic acquisitions Innovate 600K-1M commercial resources 6-8% Double acquired margins Lean Six Sigma commercial excellence 531 689130 157 504 633 2014 Q2 2018 R&D / Technical Marketing Sales PolyOne Corporation 9 Increased commercial headcount + 28% + 18% + 23% Generating opportunities 35% 25% 1,000 $1.0B Enhancing efficiency 8% 20% I N V E S T M E N T I N COMMERCIAL RESOURCES D R I V I N G G R O W T H Lead Specialists T H E E V O L V I N G C U S T O M E R R E L A T I O N S H I P PolyOne Corporation 10 Expanded Path Traditional Path Strategic Accounts/ Field Sales Business Development Customer Service Web and Social Media Inside Sales PolyOne Corporation 11 Investments in digital and dedicated inside sales to improve customer experience 80% increase in leads (from 6,000 to 11,000) driven by website, phone, and online chat EXPANDED PATH A D D I N G C U S T O M E R T O U C H P O I N T S 4 21 2014 2017 Inside sellers $11M $88M 2014 2017 Inside sales/digital revenue N E W R E S O U R C E S F U E L I N G T H E F U T U R E PolyOne Corporation 12 P O L Y O N E S A L E S F U N N E L +34% 2014 $3.0 billion 2017 $4.0 billion A L I G N I N G W I T H T R E N D S F O R G R O W T H T R A N S P O R T A T I O N P A C K A G I N G H E A L T H C A R E C O N S U M E R PolyOne Corporation 13 Facilitate alternative energy solutions Light- weighting Reduce packaging materials Improve recyclability Reduce spread of infection I N N O V A T I O N PolyOne Corporation 14 Customization 55% M&A 30% Innovation Pipeline 15% Innovation comes from Research & Development Spend Vitality Index 12% 38% 2006 2017 $20 $52 2006 2017 Transformational Adjacent Core 3 H O R I Z O N S O F D E V E L O P M E N T PolyOne Corporation 15 Market Technical I N N O V A T I O N I N N O V A T I O N P I P E L I N E PolyOne Corporation 16 PrototypeFrame Opportunity Scale-up & Test Market Build Business Case Commercial Launch (since 2015) Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 8 5 6 2 1 15 4 10 5 11 4 5 7 Breakthrough Platform Derivative F L A M E R E T A R D A N T P O L Y M E R S A D V A N C E D C O M P O S I T E S B A R R I E R M A T E R I A L S C O L O R A N T T E C H N O L O G I E S T H E R M O P L A S T I C E L A S T O M E R S I N N O V A T I O N S P O T L I G H T : C O M P O S I T E S PolyOne Corporation 17 C O M P O S I T E S R E F R E S H E R PolyOne Corporation 18 Fiber Polymer Composite S T R A T E G I C I N V E S T M E N T H I S T O R Y Thermoplastic Composites Long Fiber Reinforced Thermoplastics Continuous Fiber Thermosets Long Fiber Reinforced Thermoplastics Continuous Fiber Thermosets 2012 2015 20162009 2011 2018 PolyOne Corporation 19 C O M P O S I T E S I N T R A N S P O R T A T I O N PolyOne Corporation 20 W A T E R C R A F TR A I L H E A V Y T R U C K PolyOne Corporation 21 Safety Technology Geography Service FinancialPeople 8-10% with ability to double I N V E S T - T O - G R O W M & A S T R A T E G Y PolyOne Corporation 22 Capture sourcing synergies Cross-sell & blend technology 8-10% operating margins I N V E S T - T O - G R O W M & A P L A Y B O O K Protect customers Retain employees Implement LSS to drive efficiency improvements Innovate with combined portfolio Safety First!
T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y SERVICE: T H E T I M E L E S S D I F F E R E N T I A T O R PolyOne Corporation 29 T A L E N T D E V E L O P M E N T PolyOne Corporation 30 Leadership Program Participants 2012 2013 2014 2015 47 0 86 2016 2018 125 169 315 Campus Hires 2008 2011 2014 2017 0 25 90 47 PolyOne LSS Blackbelts 2008 2011 2014 2018 0 67 220 147 2018 141 A U N I Q U E C U S T O M E R E X P E R I E N C E Industrial Design IQ DESIGN LABS PolyOne Corporation 31 Material & Color Expertise Manufacturing Expertise 3 14 2014 2017 Industrial designers $0 $7M 2014 2017 $4M $40M 2014 2017 Opportunity funnel New business revenue LSS CUSTOMER FIRST PolyOne Corporation 32 Customer Projects 2014 2017 2 85 3 D P R I N T I N G B R I N G I N G N E W I D E A S T O L I F E PolyOne Corporation 33 PolyOne Corporation 34 M O N T H M O N T H M O N T H M O N T H M O N T H M O N T H 99.9% up to 24 weeks 6 hours C O L O R M A T R I X S E L E C T ™ I N N O V A T I N G W I T H P O L Y O N E PolyOne Corporation 35 SEGMENT HIGHLIGHTS C O L O R , A D D I T I V E S & I N K S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 36 Solid Colorants Performance Additives Screen Printing Inks Liquid Colorants Packaging 27% Industrial 14% Textiles 12% Building & Construction 10% Wire & Cable 10%Transportation 8% Consumer 7% Healthcare 6% Electrical & Electronics 3% Appliance 3% Operating Income & MarginRevenue by Region C O L O R , A D D I T I V E S & I N K S 2 0 1 7 R E V E N U E | $ 8 9 3 M I L L I O N $4 $25 $104 $139 0.9% 5.5% 12.2% 15.5% 2005 2009 2013 2017 PolyOne Corporation 37 Europe 32% United States 46% Asia 15% Canada 1% Mexico 4% Brazil 2% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 38 Engineered Formulations Advanced Composites Thermoplastic Elastomers Consumer 20% Transportation 19% Wire & Cable 13% Healthcare 11% Industrial 8% Packaging 7% Appliance 4% Building & Construction 3% Electrical & Electronics 15% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S Revenue by Region Operating Income & Margin 2 0 1 7 R E V E N U E | $ 6 2 4 M I L L I O N PolyOne Corporation 39 $21 $57 $76 0.1% 5.1% 9.3% 2005 2009 2013 2017 Europe 28% United States 48% Asia 22% Canada 2% 12.1% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 40 Specialty Vinyl Solutions Healthcare Formulations Smart Device Materials Flame Retardant Polymers Building & Construction 30% Industrial 18% Transportation 16% Wire & Cable 15% Appliance 7% Packaging 5% Consumer 5% Electrical & Electronics 3% Healthcare 1% Asia 2% United States 77% Mexico 5% Canada 16% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S Operating Income & MarginRevenue by Region 2 0 1 7 R E V E N U E | $ 7 2 1 M I L L I O N $40 $33 $56 $77 4.6% 3.6% 7.2% 10.7% 2005 2009 2013 2017 PolyOne Corporation 41 $886 $668 $773 $721Sales D I S T R I B U T I O N E N D M A R K E T S & S U P P L I E R S PolyOne Corporation 42 Transportation 23% Healthcare 22% Industrial 18% Consumer 15% Appliance 7% Electrical & Electronics 6% Building & Construction 4% Packaging 3% Wire & Cable 2% $20 $25 $63 $73 2.9% 4.0% 5.9% 6.3% 2005 2009 2013 2017 Operating Income & Margin2017 Revenue | $1.2 Billion http://www.polyone.com/Pages/VariationRoot.aspx T A R G E T E N D M A R K E T S & A P P L I C A T I O N E X A M P L E S PolyOne Corporation 43 Thermally Conductive Technologies Chemical Resistant Technologies Polymer Colorants Elastomeric Grips and Handles Structural Composites Antimicrobial Technologies Anti-Counterfeiting Technologies Target End Markets… Healthcare Catheter Technologies Under-hood Components Target End Markets… Automotive Interior Structural Components Sound & Vibration Management Roof Systems Air Management Electronics and Cameras Lighting Exterior / Interior Trim Braces & Brackets Fasteners Seals & Flaps Target End Markets… Consumer Thermally Conductive Components Polymer Colorants Elastomeric Grips and Handles Structural Composite Components Oxygen Scavenger Technologies Laser Marking Additives Antistatic Technologies UV Light Barrier Technologies Cap & Closure Colorants Process Optimization Technologies Antioxidant Technologies Density Modified Technologies Target End Markets… Packaging Luxury Packaging GravitechTM Density Modified Polymers Optimize Color Usage OnColorTM Super Concentrates Combat Bacteria Formation WithStandTM Antimicrobial Technology Medical Device Housings Chemically Resistant Engineered Polymers Color & Design Services Outdoor Applications Fiber Colorants Smart Home Devices ResilienceTM Vinyl Solutions � � �������� � � ��� � �� � ����� ����� ��� ��� ������ �� ��� ��� �� ��� ��� !"
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V I S I O N PolyOne Corporation 4 To be the world’s premier provider of specialized polymer materials, services and solutions C O R E V A L U E S P E R S O N A L V A L U E S Honesty IntegrityRespect Operational Excellence Commercial Excellence Specialization Globalization Collaboration ExcellenceInnovation To be the world’s premier provider of specialized polymer materials, services and solutions S A F E T Y F I R S T PolyOne Corporation 5 Injuries per 100 Workers Spartech Acquisition 1.3 1.1 1.1 0.85 0.65 0.57 0.54 0.97 0.84 0.74 0.74 0.69 0.51 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD PolyOne Corporation 6 P O L Y O N E 2 0 1 7 R E V E N U E | $ 3 . 2 B I L L I O N Transportation 18% Industrial 16% Consumer 12% Packaging 11% Healthcare 11% Wire & Cable 9% Appliance 5% United States 59% Europe 14% Asia 10% Latin America 9% Canada 8% PolyOne Distribution 34% Performance Products & Solutions 21% Specialty Engineered Materials 19% Color Additives & Inks 26% Segment End Market Geography Building & Construction 12% Electrical & Electronics 6% 2009 2010 2011 2012 2013 2014 2015 2016* 2017* P R O O F O F P E R F O R M A N C E C O N S E C U T I V E Y E A R S PolyOne Corporation 7 8 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.06 $2.21 *Pro Forma for sale of DSS 2006 2017 “Where we were” “Where we are” ROIC** 5.0% 14.0% Operating Income % of Sales Color, Additives & Inks 1.7% 15.5% Specialty Engineered Materials 1.1% 12.1% Performance Products & Solutions 4.3% 10.7% Distribution 2.6% 6.3% **ROIC is defined as TTM adjusted OI after tax divided by the sum of average debt and equity less cash over a 5 quarter period A D J U S T E D E P S E X P A N S I O N S U S T A I N A B L E P A T H T O D O U B L E - D I G I T E P S G R O W T H PolyOne Corporation 8 P E O P L E P R O D U C T S P L A N E T P E R F O R M A N C E Double digit annual EPS growth Expand specialty portfolio with strategic acquisitions Innovate and develop new technologies and services Repurchase 600K-1M shares annually Increase commercial resources 6-8% annually Double acquired company margins Enhance efficiencies through Lean Six Sigma and commercial excellence 531 711130 158 504 656 2014 Q3 2018 R&D / Technical Marketing Sales PolyOne Corporation 9 Increased commercial headcount + 34% + 22% + 30% Generating opportunities 35% more sales calls 25% more marketing campaigns 1,000 new customers, expanding customer base by 5% $1.0B increase in new opportunities Enhancing efficiency 8% reduction of average territory size, enabling greater customer focus 20% more prospecting calls I N V E S T M E N T I N COMMERCIAL RESOURCES D R I V I N G G R O W T H Lead Specialists T H E E V O L V I N G C U S T O M E R R E L A T I O N S H I P PolyOne Corporation 10 Expanded Path Traditional Path Strategic Accounts/ Field Sales Business Development Customer Service Web and Social Media Inside Sales PolyOne Corporation 11 Investments in digital and dedicated inside sales to improve customer experience 80% increase in leads (from 6,000 to 11,000) driven by website, phone, and online chat EXPANDED PATH A D D I N G C U S T O M E R T O U C H P O I N T S 4 21 2014 2017 Inside sellers $11M $88M 2014 2017 Inside sales/digital revenue N E W R E S O U R C E S F U E L I N G T H E F U T U R E PolyOne Corporation 12 P O L Y O N E S A L E S F U N N E L +34% 2014 $3.0 billion 2017 $4.0 billion A L I G N I N G W I T H T R E N D S F O R G R O W T H T R A N S P O R T A T I O N P A C K A G I N G H E A L T H C A R E C O N S U M E R PolyOne Corporation 13 Facilitate alternative energy solutions Light- weighting Reduce packaging materials Improve recyclability Reduce spread of infection I N N O V A T I O N PolyOne Corporation 14 Customization 55% M&A 30% Innovation Pipeline 15% Innovation comes from Research & Development Spend ($ millions) Vitality Index % of sales from products launched last 5 years 12% 38% 2006 2017 $20 $52 2006 2017 Transformational Opportunity for Growth Through M&A Adjacent Opportunity for Growth Through New Product Pipeline Core Customization 3 H O R I Z O N S O F D E V E L O P M E N T PolyOne Corporation 15 Incremental development from existing base of technology New development adjacent to current technology New technology development outside of and with our current base Service adjacent markets and customers Create new markets, target new customer needs Service existing markets and customers Market Technical I N N O V A T I O N Non-Halogen Flame Retardants Barrier Technologies Fiber Colorants Advanced Composites Thermoplastic Elastomers Gordon Composites/ Polystrand – Composites GLS – Thermoplastic Elastomers ColorMatrix – Liquid Color & Additives I N N O V A T I O N P I P E L I N E PolyOne Corporation 16 PrototypeFrame Opportunity Scale-up & Test Market Build Business Case Commercial Launch (since 2015) Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 8 5 6 2 1 15 4 10 5 11 4 5 7 Breakthrough Platform Derivative Number of Projects 26 16 20 15 2 79 Total Addressable Market ($ millions) - - $1,230 $1,170 $440 $2,840 F L A M E R E T A R D A N T P O L Y M E R S A D V A N C E D C O M P O S I T E S B A R R I E R M A T E R I A L S C O L O R A N T T E C H N O L O G I E S T H E R M O P L A S T I C E L A S T O M E R S I N N O V A T I O N S P O T L I G H T : C O M P O S I T E S PolyOne Corporation 17 C O M P O S I T E S R E F R E S H E R PolyOne Corporation 18 Fiber Polymer Composite Strength Design Flexibility Continuous Fiber Thermoset Composites Short Glass Fiber Thermoplastics Continuous Fiber Thermoplastic Composites Long Glass Fiber Thermoplastics S T R A T E G I C I N V E S T M E N T H I S T O R Y Acquired Polystrand Installed LFT production Avon Lake Acquired Gordon Composites Thermoplastic Composites Long Fiber Reinforced Thermoplastics Continuous Fiber Thermosets Long Fiber Thermoplastic (LFT) Technology Installed LFT production Barbastro, Spain Acquired Glasforms Long Fiber Reinforced Thermoplastics Continuous Fiber Thermosets 2012 2015 20162009 2011 Acquired PlastiComp, specialty LFT producer 2018 PolyOne Corporation 19 C O M P O S I T E S I N T R A N S P O R T A T I O N PolyOne Corporation 20 W A T E R C R A F TR A I L H E A V Y T R U C K Bulkheads and Transoms Ceilings and Hatches Doors and Cabinetry Flooring Door Panels Side Walls Flooring & Side Panels Aerodynamic Fairings Seat and Bunk Reinforcements PolyOne Corporation 21 Safety Technology Geography Service FinancialPeople Low EH&S risk profile New and complementary technologies Leverage our global footprint Strong customer relationships Foundational operating margins of 8-10% with ability to double Motivated team with a specialty culture I N V E S T - T O - G R O W M & A S T R A T E G Y PolyOne Corporation 22 Capture sourcing synergies Cross-sell & blend technology 8-10% operating margins I N V E S T - T O - G R O W M & A P L A Y B O O K Protect customers Retain employees Implement LSS to drive efficiency improvements Innovate with combined portfolio Safety First!
T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y Growing leadership position in attractive markets Innovation, technology and service are differentiators Capital management is a strength: Record-setting cash generation to continue for years Expand ROIC while increasing invested capital Proven acquisition strategy with robust pipeline Commercial investments are fueling momentum and generating organic growth SERVICE: T H E T I M E L E S S D I F F E R E N T I A T O R PolyOne Corporation 29 T A L E N T D E V E L O P M E N T PolyOne Corporation 30 Leadership Program Participants 2012 2013 2014 2015 47 0 86 2016 2018 125 169 315 Campus Hires 2008 2011 2014 2017 0 25 90 47 PolyOne LSS Blackbelts 2008 2011 2014 2018 0 67 220 147 2018 141 A U N I Q U E C U S T O M E R E X P E R I E N C E Industrial Design IQ DESIGN LABS PolyOne Corporation 31 Material & Color Expertise Manufacturing Expertise 3 14 2014 2017 Industrial designers $0 $7M 2014 2017 $4M $40M 2014 2017 Opportunity funnel New business revenue LSS CUSTOMER FIRST PolyOne Corporation 32 Customer Projects Enables sales growth by building more intimate customer relationships, giving us insight to customers’ needs, with a service that is not easily replicated 2014 2017 2 85 3 D P R I N T I N G B R I N G I N G N E W I D E A S T O L I F E PolyOne Corporation 33 Enables validation of fit and function Shortens design cycle and time to market Avoids tooling rework Drives innovation Delivers substantial customer value PolyOne Corporation 34 From concept to production M O N T H M O N T H M O N T H M O N T H M O N T H M O N T H 99.9% Reduction in turnaround time Traditional Timeline up to 24 weeks PolyOne ColorMatrix Select™ 6 hours Innovative system for processors and OEMs to develop colors in real time Complete system that provides customers with the freedom to match, prototype and produce color entirely within their own facility C O L O R M A T R I X S E L E C T ™ “Being able to create color and produce parts in 1 day is unheard of in this industry” -CEO, Industry Leader I N N O V A T I N G W I T H P O L Y O N E PolyOne Corporation 35 SEGMENT HIGHLIGHTS C O L O R , A D D I T I V E S & I N K S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 36 Solid Colorants Performance Additives Screen Printing Inks Liquid Colorants Packaging 27% Industrial 14% Textiles 12% Building & Construction 10% Wire & Cable 10%Transportation 8% Consumer 7% Healthcare 6% Electrical & Electronics 3% Appliance 3% Operating Income & MarginRevenue by Region C O L O R , A D D I T I V E S & I N K S 2 0 1 7 R E V E N U E | $ 8 9 3 M I L L I O N $4 $25 $104 $139 0.9% 5.5% 12.2% 15.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20 30 40 50 60 70 80 90 100 110 120 130 140 150 2005 2009 2013 2017 PolyOne Corporation 37 Europe 32% United States 46% Asia 15% Canada 1% Mexico 4% Brazil 2% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 38 Engineered Formulations Advanced Composites Thermoplastic Elastomers Consumer 20% Transportation 19% Wire & Cable 13% Healthcare 11% Industrial 8% Packaging 7% Appliance 4% Building & Construction 3% Electrical & Electronics 15% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S Revenue by Region Operating Income & Margin 2 0 1 7 R E V E N U E | $ 6 2 4 M I L L I O N PolyOne Corporation 39 $21 $57 $76 0.1% 5.1% 9.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 20 30 40 50 60 70 80 2005 2009 2013 2017 Europe 28% United States 48% Asia 22% Canada 2% 12.1% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 40 Specialty Vinyl Solutions Healthcare Formulations Smart Device Materials Flame Retardant Polymers Building & Construction 30% Industrial 18% Transportation 16% Wire & Cable 15% Appliance 7% Packaging 5% Consumer 5% Electrical & Electronics 3% Healthcare 1% Asia 2% United States 77% Mexico 5% Canada 16% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S Operating Income & MarginRevenue by Region 2 0 1 7 R E V E N U E | $ 7 2 1 M I L L I O N $40 $24 $56 $77 4.6% 3.6% 7.2% 10.7% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 0 10 20 30 40 50 60 70 80 90 100 2005 2009 2013 2017 PolyOne Corporation 41 $886 $668 $773 $721Sales D I S T R I B U T I O N E N D M A R K E T S & S U P P L I E R S PolyOne Corporation 42 Transportation 23% Healthcare 22% Industrial 18% Consumer 15% Appliance 7% Electrical & Electronics 6% Building & Construction 4% Packaging 3% Wire & Cable 2% $20 $25 $63 $73 2.9% 4.0% 5.9% 6.3% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 15 25 35 45 55 65 75 2005 2009 2013 2017 Operating Income & Margin2017 Revenue | $1.2 Billion http://www.polyone.com/Pages/VariationRoot.aspx T A R G E T E N D M A R K E T S & A P P L I C A T I O N E X A M P L E S PolyOne Corporation 43 Thermally Conductive Technologies Chemical Resistant Technologies Polymer Colorants Elastomeric Grips and Handles Structural Composites Antimicrobial Technologies Anti-Counterfeiting Technologies Target End Markets… Healthcare Catheter Technologies Under-hood Components Target End Markets… Automotive Interior Structural Components Sound & Vibration Management Roof Systems Air Management Electronics and Cameras Lighting Exterior / Interior Trim Braces & Brackets Fasteners Seals & Flaps Target End Markets… Consumer Thermally Conductive Components Polymer Colorants Elastomeric Grips and Handles Structural Composite Components Oxygen Scavenger Technologies Laser Marking Additives Antistatic Technologies UV Light Barrier Technologies Cap & Closure Colorants Process Optimization Technologies Antioxidant Technologies Density Modified Technologies Target End Markets… Packaging Impart weight, sound and metallic finish to caps and closures for cosmetics and spirits applications Elevate quality and prestige perceptions among high-end consumers Eliminate time and cost associated with secondary operations and assembly Luxury Packaging GravitechTM Density Modified Polymers Eliminate costs by increasing pigment density Enhance color performance without altering form and formulation Increase design capabilities by reducing weight and layer thickness Optimize Color Usage OnColorTM Super Concentrates Inhibit microbial growth on polymer surfaces Enhance value or products and devices Highly versatile concentrate with the ability to be incorporated into a wide variety of products Combat Bacteria Formation WithStandTM Antimicrobial Technology Durable, long-lasting products stand up to the most aggressive disinfectants Minimize environmental stress cracking and discoloration One of the broadest medically approved polymer and colorant portfolios Medical Device Housings Chemically Resistant Engineered Polymers Color & Design Services Greater control of color development and supply chain Work across entire design process from concept to commercialization Inspire creativity in the use of polymer materials, colors, and effects Innovative brand differentiation Faster development timelines Outdoor Applications Leading provider of high performance specialty materials for the recreational and sports & leisure industry Well positioned across all segments to address market needs Metal to Polymer Conversion Lightweighting Thermal Management Impact Performance ColorMatrix Fiber Colorant Solutions Proprietary advanced liquid color formulations and equipment enable greater efficiency and productivity Eliminates aqueous dyeing and its associated wastewater treatment Solid Color Concentrates Extrusion-spun fibers colored via solid masterbatch Fiber Colorants High flame retardancy to meet strict UL standards Greater processing and design flexibility Specialized additives provide long term color stability Diffusive lens materials improve light dispersion Smart Home Devices ResilienceTM Vinyl Solutions PolyOne investor presentation Forward Looking Statements USE OF �NON-GAAP�MEASURES Vision Safety First PolyOne�2017 Revenue | $3.2 billion Proof of Performance Sustainable Path to Double-Digit EPS Growth Investment in Commercial Resources driving growth The Evolving Customer Relationship Slide Number 11 New Resources Fueling the Future Aligning with trends for Growth Innovation 3 Horizons of Development Innovation Pipeline Innovation Spotlight: Composites Composites Refresher Strategic Investment History COMPOSITES in Transportation Invest-to-Grow M&A Strategy Invest-to-Grow M&A Playbook Invest-to-Grow Proof of performance Invest-to-Grow Driving the future Strong Pipeline�driven by fragmented Market Returning cash to shareholders�Over $1 Billion since 2011 ROIC drives shareholder return Why Invest In PolyOne?