https://www.avient.com/sites/default/files/resources/POL%2520Gabelli%2520IR%2520Presentation%2520w%2520Non-GAAP%252003%252020%25202014.pdf
Use of Non-GAAP Measures Page 3 PolyOne Commodity to Specialty Transformation Page 4 • Continue specialty transformation • Targeting $2.50 Adjusted EPS by 2015, nearly double 2013 EPS • Drive double digit operating income and adjusted EPS growth • 17 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 • 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 • Volume driven, commodity producer • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures 2000-2005 2006 - 2009 2010 – 2013 2014 and beyond -150.00% -50.00% 50.00% 150.00% 250.00% 350.00% PolyOne S&P 500 Russell 2000 Dow Jones Chemical All time high of $38.38 March 7th, 2014 • 17 consecutive quarters of double digit EPS growth • 49% CAGR adjusted EPS expansion 2006-2013 • 2013 stock price increased 73% versus 30% growth in the S&P • More than seven fold increase in market cap: $0.5b $3.6b Strategy and Execution Drive Results Page 5 Appliance 4% Building & Construction 13% Wire & Cable 9% Electrical & Electronics 5% Consumer 10%Packaging 16% Industrial 12% HealthCare 11% Transportation 18% Misc. 2% United States 66% Europe 14% Canada 7% Asia 6% Latin America 7% PP&S 20% Specialty 53% Distribution 27% 0.12 0.27 0.21 0.13 0.68 0.82 1.00 1.31 2.50 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 $2.50 2006 2007 2008 2009 2010 2011 2012 2013 2015 Target Ad ju st ed E ar ni ng s P er S ha re 2013 Revenues: $3.8 Billion End Markets 2013 Revenues: $3.8 Billion EPS Page 6 PolyOne At A Glance Old PolyOne Transformation *Operating Income excludes corporate charges and special items 2% 34% 43% 62% 65- 75% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2013 2015 % o f O pe ra tin g In co m e* JV's Performance Products & Solutions Distribution Specialty Specialty OI $5M $46M $87M $195M Target Mix Shift Highlights Specialty Transformation 2015 Target Page 7 2006 2013 2015 “Where we were” “Where we are” Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 12.2% 12 – 16% Global Specialty Engineered Materials 1.1% 9.3% 12 – 16% Designed Structures & Solutions -- 5.6% 8 – 10% Performance Products & Solutions 5.4% 7.2% 9 – 12% Distribution 2.6% 5.9% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 62% 65 – 75% 3) ROIC* (after-tax) 5.0% 9.1% 15% 4) Adjusted EPS Growth N/A 31% Double Digit Expansion Proof of Performance & 2015 Goals *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period Page 8 Bridge To $2.50 Adjusted EPS By 2015 2015 EPS: $2.50 2013 EPS: $1.31 Mid single digit revenue CAGR Page 9 Mergers & Acquisitions Spartech accretion Incremental share buybacks Ongoing LSS Programs (50-100 bps/yr) Accelerated Innovation & Mix Improvement Innovation Drives Earnings Growth $20.3 $52.3 2006 2013 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* *Percentage of Specialty Platform revenue from products introduced in last five years Page 10 14.3% 30.7% 2006 2013 Specialty Platform Gross Margin % 19.5% 43.0% 2006 2013 Healthcare Consumer Packaging and Additive Technology Transportation Page 11 Unique and Innovative Solutions that Help Customers Win https://www.dropbox.com/sh/dwe4t8aacvhb8ui/uD3p_bdglP/Presentation revise pics/GLS Beverage can closure XO 2.jpg https://www.dropbox.com/sh/dwe4t8aacvhb8ui/-YgkycKypw/Anti-Counterfeiting release & images/GN1979.JPG Net Debt / EBITDA* = 1.8x $48 $317 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Significant Debt Maturities As of December 31, 2013 ($ millions) Page 12 Coupon Rates: 7.500% 7.375% 5.250% Debt Maturities & Pension Funding – 12/31/13 *TTM 12/31/2013 ** includes US-qualified plans only 60% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2013 Pension Funding** As of December 31, 2013 Free Cash Flow and Strong Balance Sheet Fund Investment •Targets that expand our: • Specialty offerings •End market presence •Geographic footprint •Operating Margin • Synergy opportunities •Adjacent material solutions •Expanding our sales, marketing, and technical capabilities • Investing in operational and LSS initiatives (including synergy capture) •Manufacturing alignment Organic Growth Share Repurchases Dividends Acquisitions Page 13 $0.16 $0.20 $0.24 $0.32 $0.00 $0.10 $0.20 $0.30 $0.40 2011 2012 2013 2014 Annual Dividend • Repurchased ~5 million shares in 2013 • 15 million shares are available for repurchase under the current authorization The New PolyOne: A Specialty Growth Company 2015 Target: $2.50 Adjusted EPS Why Invest In PolyOne?
Reconciliation to Condensed Consolidated Balance Sheets 2013 Short-term debt and current portion of long-term debt $ 12.7 Long-term debt 976.2 Less cash and cash equivalents (365.2) Net debt $ 623.7 Adjusted EBITDA 2013 Income before income taxes $ 151.0 Interest expense, net 63.5 Depreciation and amortization 108.8 Special items in EBITDA 31.7 Adjusted EBITDA $ 355.0 2 Platform sales and operating income (OI) 2006Y* 2013Y Global Specialty Engineered Materials sales $ 345.3 $ 615.5 Global Color, Additives and Inks sales 531.8 852.3 Designed Structures and Solutions sales - 597.4 Specialty Platform sales 877.1 2,065.2 Performance Products and Solutions sales 1,166.2 773.2 PolyOne Distribution sales 732.8 1,075.2 Corporate and eliminations (153.7) (142.4) Total sales $ 2,622.4 $ 3,771.2 Global Specialty Engineered Materials OI $ 3.9 $ 57.2 Global Color, Additives and Inks OI 8.9 104.0 Designed Structures & Solutions OI - 33.4 Specialty Platform OI 12.8 194.6 Performance Products and Solutions OI 64.2 56.0 PolyOne Distribution OI 19.2 63.3 Sunbelt Joint Venture OI 102.9 - Corporate and eliminations (4.6) (52.4) Special items in OI 39.1 (30.0) Operating income GAAP 233.6 231.5 Sunbelt equity income (107.0) - Special items in OI (39.1) 30.0 Adjusted operating income $ 87.5 $ 261.5 Global Specialty Engineered Materials - OI % of sales 1.1% 9.3% Global Color, Additives and Inks - OI % of sales 1.7% 12.2% Designed Structures & Solutions - OI % of sales - 5.6% Specialty platform OI - % of sales 1.5% 9.4% PP&S operating OI - % of sales 5.5% 7.2% Distribution OI - % of sales 2.6% 5.9% PolyOne OI adjusted - % of sales 3.3% 6.9% * Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
https://www.avient.com/sites/default/files/2021-06/avient-ir-presentation-may-2021-w-non-gaap-recs.pdf
Examples include: • Barrier technologies that preserve the shelf-life and quality of food, beverages, medicine and other perishable goods through high- performance materials that require less plastic • Light-weighting solutions that replace heavier traditional materials like metal, glass and wood, which can improve fuel efficiency in all modes of transportation • Breakthrough technologies that minimize wastewater, improve the recyclability of materials and advance a circular economy • Composite solutions to support accelerated growth of 5G / fiber-optic infrastructure investment as the world demands greater and faster connectivity Avient employs approximately 8,400 associates and is certified ACC Responsible Care® and a founding member of the Alliance to End Plastic Waste.
With the Clariant Masterbatch acquisition and divestment of the PP&S business, our exposure is now concentrated in less-cyclical and high-growth markets, with increased geographic diversification and a more specialized portfolio that can significantly expand EBITDA margins. 28 Avient reflects 2021 estimated EBITDA of $560M OUR VALUATION VERSUS PEERS Avient Specialty Formulators Other Chemical/Specialty Companies 10.2 17.7 16.0 14.9 14.6 11.6 11.1 26.7 24.0 22.8 14.3 12.7 11.5 11.2 11.1 11.0 10.3 10.1 9.5 9.4 8.3 7.0 A vi en t K W R A V Y R P M P P G G C P F U L A L B H X L E C L IF F F M C B N R A S H G R A F O E S C L E M N U N V R C E K R A H U N Median: 11.1xMedian: 14.8x SUMMARY: WHY INVEST IN AVIENT?
https://www.avient.com/sites/default/files/2021-02/avient-ir-presentation-goldman-sachs-and-morgan-stanley.pdf
Examples include: • Barrier technologies that preserve the shelf-life and quality of food, beverages, medicine and other perishable goods through high- performance materials that require less plastic • Light-weighting solutions that replace heavier traditional materials like metal, glass and wood, which can improve fuel efficiency in all modes of transportation • Breakthrough technologies that minimize wastewater, improve the recyclability of materials and advance a circular economy • Composite solutions to support accelerated growth of 5G / fiber-optic infrastructure investment as the world demands greater and faster connectivity Avient employs approximately 8,400 associates and is certified ACC Responsible Care® and a founding member of the Alliance to End Plastic Waste.
With the Clariant Masterbatch acquisition and divestment of the PP&S business, our exposure is now concentrated in less-cyclical and high-growth markets, with increased geographic diversification and a more specialized portfolio that can significantly expand EBITDA margins. 27 Avient reflects 2021 estimated EBITDA of $510M OUR VALUATION VERSUS PEERS Avient Specialty Formulators Other Chemical/Specialty Companies 9.5 21.1 13.2 13.2 12.0 12.0 9.7 25.2 23.1 14.7 13.5 12.9 11.0 11.0 11.0 10.2 9.6 9.3 9.3 9.1 8.6 8.3 A vi en t K W R A V Y R P M G C P P P G F U L A L B E C L H X L IF F F M C G R A B N R F O E A S H C E S C L U N V R E M N H U N K R A Median: 11.0xMedian: 12.6x SUMMARY: WHY INVEST IN AVIENT?
https://www.avient.com/sites/default/files/2020-08/specialty-dispersions-overview.pdf
COLORANT DISPERSIONS RUBBER COLORANT DISPERSIONS Stan-Tone™ MB/MC & EP Stan-Tone™ MB/MC & EP are pigment dispersions for rubber systems, available in customizable binder systems suited for nitrile, EPR, EPDM, SBR, natural rubber, CPE and EVA compounds Applications: industrial goods, auto mats, rubber flooring, sponge rubber, wire and cable URETHANE COLORANT DISPERSIONS Polyester Urethane Paste Colorants: Stan-Tone™ PEP Stan-Tone™ PEP colorants are reactive and compatible with polyester systems, reacting to become part of the final cured product Applications: cast urethane wheels, industrial rollers, rigid foams, adhesives, laminates, pultrusion, glass reinforced composites, coated fabrics Polyether Urethane Paste Colorants: Stan-Tone™ ET Stan-Tone™ ET colorants for urethane are compatible with polyether systems, reacting to become part of the final cured product Applications: flexible foam, cast-able rolls and wheels, adhesives and laminates EPOXY COLORANT DISPERSIONS Stan-Tone™ EPX Stan-Tone™ EPX consists of selected pigments dispersed in a Bisphenol A undiluted epoxy resin with an epoxide equivalent of 185 Applications: protective coatings, adhesives, epoxy flooring, electrical potting and laminates VINYL COLORANT DISPERSIONS Stan-Tone™ VC & VCP Stan-Tone™ VC and VCP are products based on single pigment or multi-pigment blends and are designed for applications in which dispersion, uniformity, compatibility and cleanliness are essential Applications: profile extrusions, decking, outdoor furniture, calendaring applications Plasticizer-Based Colorants for Vinyl Paste: Stan-Tone™ HCC Stan-Tone™ HCC dispersions consist of selected pigments dispersed in diisodecyl phthalate plasticizer (DIDP) and are designed for applications in which dispersion, uniformity, compatibility and cleanliness are essential Applications: coated fabric, vinyl sealants, adhesives, wall coverings, toys and sporting goods SILICONE COLORANT DISPERSIONS Liquid Silicone Colorants: Silcopas™ Stan-Tone™ SP or FSP (FDA-compliant) Silcotec™ SL Stan-Tone™ HC Plus LSR (class VI certified) Silicone paste colorants are single pigment or custom- made dispersions using a silicone carrier specially developed for liquid silicone rubber (LSR) injection molding applications Applications: infant care, toys, seals, gaskets and medical equipment High Consistency Silicone Rubber Colorants: Silcogum™ Silcotec™ S Stan-Tone™ SMB Stan-Tone™ HC Plus HCR (class VI certified) Silicone rubber colorants are made with a silicone elastomer gum binder resulting in cuttable masterbatches or slabs for ease of handling, especially for 2-roll, open-mill mixing Applications: mechanical seals, keypads, gaskets, wire and cable jacketing Room Temperature Vulcanization Colorants: Silcopas™ RTV and Stan-Tone™ SP Silcopas™ RTV and Stan-Tone™ SP colorants offer a standard line of single pigment or custom made dispersions using a low viscosity dimethyl fluid specially developed for room temperature vulcanization (RTV) rubber Applications: caulks, sealants, adhesives WATER-BASED COLORANT DISPERSIONS Water-Based Liquid Colorants: Stan-Tone™ WDN Stan-Tone™ WDN water dispersions are high-solids organic or inorganic pigment dispersions designed to help meet standards for dispersion including pH levels and strength and shade Applications: dipped latex balloons and gloves, coatings and adhesive systems ADDITIVE DISPERSIONS AQUEOUS ADDITIVE DISPERSIONS Aquamix™ Aquamix™ chemical dispersions are a full line of dispersed and emulsified curatives, antioxidants, fillers, vulcanizers, optical brighteners, flame retardants, UV stabilizers and tackifiers Applications: adhesives and latex compounding, curatives SILICONE ADDITIVE DISPERSIONS Electrically Conductive Additives for Silicone: Silcosperse™ EC Silcosperse™ EC electrically conductive additives provide high conductivity and lower filler loadings Applications: resistors, printable electronics, flexible electronics, insulator depolarizers Laser Marking Additives for Silicone: Silcosperse™ LM Silcosperse™ LM laser marking additives are dispersions that contain laser absorbers and color formers that eliminate the need for secondary etching Applications: medical device housings, electronic device housings, wire and cable jacketing Peroxide Additives for Silicone: Silcocat™ Silcocat™ dispersions can improve silicone molding process by stabilizing silicone peroxide compound levels Applications: automotive hoses, seals, gaskets Heat Stabilizer Additives for Silicone: Silcosperse™ The Silcosperse™ family of heat stabilizing additives provide a high quality dispersion into silicone designed to enhance heat resistance of silicone compounds Mold Release Additives for Silicone: Silcosperse™ IMR Silcosperse™ IMR is an internal mold release dispersion designed to be added to the silicone or fluorosilicone compound to facilitate the de-molding of finished parts Acid Acceptor Additives for Silicone: Silcosperse™ 180 Silcosperse™ 180 acid acceptor is a premium dispersion used to neutralize acid by-products generated by certain peroxides Viscosity Modifiers for Silicone: Silcosperse™ 237 Silcosperse™ 237 modifier dispersions are designed to raise or control the viscosity without changing solid content SPECIALTY PRODUCTS DRY POWDER COLORANTS Stan-Tone™ D and Stan-Tone™ DC Stan-Tone™ D and Stan-Tone™ DC are dry powder pigments available in a range of hues and chemical types WET OR DRY BLEND COLORANTS Stan-Tone™ DB Stan-Tone™ DB dry blend colorants provide enhanced performance over dry colors, resulting in uniform critical pigment weight ratios for improved color control SELF-BONDING SILICONE Silcotec™ SCB Silcotec™ SCB self-bonding silicone solutions allow silicone to bond to various substrates without prime coating To learn more about our colorant & additive dispersions, please contact us at +1.844.4AVIENT (1.844.428.4368) or visit www.avient.com.
https://www.avient.com/sites/default/files/2022-04/Avient Announces Agreement to Acquire Dyneema_0.pdf
Examples include: • Unique technologies that improve the recyclability of products and enable recycled content to be incorporated, thus advancing a more circular economy • Light-weighting solutions that replace heavier traditional materials like metal, glass and wood, which can improve fuel efficiency in all modes of transportation and reduce carbon footprint • Sustainable infrastructure solutions that increase energy efficiency, renewable energy, natural resource conservation and fiber optic / 5G network accessibility Avient employs approximately 8,700 associates and is certified ACC Responsible Care®, a founding member of the Alliance to End Plastic Waste and certified Great Place to Work®.
https://www.avient.com/sites/default/files/2021-05/renol-ul94-compliant-masterbatches-brochure.pdf
RENOL™ UL94 COMPLIANT MASTERBATCHES HOW TO USE THE TABLES UL HB GENERIC RESIN TYPE FLAME RATING MINIMUM THICKNESS (MM) MAXIMUM LET-DOWN RATIO Acetal Copolymer (POM) HB 1.50 1:20 Acrylonitrile Butadiene Styrene (ABS) HB 1.50 1:10 Ethylene Propylene Thermoplastic Rubber (EPTR) HB 1.50 1:20 High Impact Polystyrene (HIPS) HB 1.50 1:10 Liquid Crystal Polymer (LCP) HB 0.83 1:10 Polyamide (PA) HB 3.20 1:33 Polyamide (PA66 and PA 4/6) HB 0.81 1:20 Polyamide 6 (PA6) HB 0.75 1:25 Polyamide 66 (PA66) HB 0.40 1:40 Polybutylene Terephthalate (PBT) HB 0.81 1:20 Polybutylene Terephthalate/Polycarbonate (PBT/PC) HB 1.50 1:10 Polycarbonate (PC) HB 1.50 1:15 Polycarbonate/Acrylonitrile Butadiene Styrene (PC/ABS) HB 1.50 1:20 Polycarbonate/Polyethylene Terephthalate (PC/PET) HB 1.50 1:20 Polyethylene (PE) HB 1.50 1:50 Polyethylene Terephthalate (PET) HB 0.80 1:16.7 Polyketone HB 1.50 1:20 Polymethyl Methacrylate (PMMA) HB 3.00 1:25 Polypropylene (PP) HB 1.50 1:15 Polystyrene (PS) HB 0.83 1:15 Polyurethane (PUR) HB 1.50 1:25 Polyvinylchloride (PVC) HB 1.50 1:20 Styrene Acrylonitrile (SAN) HB 1.50 1:20 Thermoplastic Elastomer (TPE) HB 0.75 1:25 UL94 V-0, V-1, V-2 ASCEND GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polyamide 66 (PA66) 21X1(a)(f2), 21SPC1(a)(f2), 21SPF1(a)(f2), 21SPG1(a)(f2), 21SPM1(a)(f2), 20NSP1(a)(f2) 0.75 V-2 1:40 22HSP(e) 0.75 V-2 1:40 64C-R 3.0 V-2 1:50 ECO366(e) 0.4 V-0 1:40 ECO366H(e) 0.2 V-0 1:25 FR350J 0.4 V-0 1:25 20NSP(a)(f2), 21SPF(a)(f2), 21SPM(a)(f2), 21SPC(a)(f2) 0.4 V-2 1:40 20NSP(a)(h)(f2), 21SPF(a)(h)(f2), 21SPM(a)(h)(f2), 21SPC(a)(h) (f2) 1.5 V-2 1:20 Polyamide 66/6 (PA66/6) ECO315(e), ECO315J(e) 0.4 V-0 1:40 M344 3.0 V-0 1:25 909 0.75 V-0 1:25 UL94 V-0, V-1, V-2 BASF GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polyamide 6 (PA6) 8202(t1), 8202 Blend (t1) 0.71 V-2 1:25 8202C(t1), 8202C BLEND (t1) 1.50 V-2 1:25 8202CHS(t1) (t3), 8202C HS Blend 1.50 V-2 1:25 8202HS(t1) 1.50 V-2 1:25 B3S 0.80 V-2 1:25 1.50 V-2 1:25 B3S Q661 1.50 V-2 1:25 B3S R03 1.50 V-2 1:25 8232G HSFR(t9), B3U10G5 (t9) 1.50 V-0 1:25 Polyamide 6/66 (PA6/66) C3U (m) 0.40 V-0 1:25 KR4205(m), C3U (m), C3U (t)(m) 0.40 V-0 1:25 KR4205, C3U 0.40 V-0 1:25 Polyamide 66 (PA66) 1000(b), 1310-(b), Ultramid A3K Q603(+) 1.50 V-2 1:10 A3K (o) Q790(g)(f2) 0.41 V-2 1:20 A3K(f2), A3K Q601(f2) 0.41 V-2 1:20 A3SK 0.41 V-2 1:25 A5 3.00 V-2 1:33 A3W(f1), A3W FC (f1) 0.75 V-2 1:10 A3K R01 (t)(g)(f2) 0.40 V-2 1:20 Polybutylene Terephthalate (PBT) B4406 G2 (o) Q798 1.50 V-0 1:20 B4406 G2(a), B4406 G2 (o) Q717(a) 1.50 V-0 1:20 B4406 G3 (o) Q798 1.50 V-0 1:20 B4406 G3(a), B4406 G3 (o) Q717(a) 1.50 V-0 1:20 B4406 G4 (o) Q798 1.50 V-0 1:20 B4406 G4(a2), B4406 G4 (o) Q717(a2) 1.50 V-0 1:20 B4406 G6 (o) Q798 3.00 V-0 1:12.5 B4406 G6(%) 1.50 V-0 1:20 B4406 G6(a1), B4406 G6 (o) Q717(a1), B4406 G6 (o) Q717 High Speed(a1) 1.50 V-0 1:20 B4406(a), B4406 (o) Q717(a) 1.50 V-0 1:20 B4406@ 1.50 V-0 1:20 B4450 G5, B4450 G5 (t) 0.40 V-2 1:50 Polyurethane (PUR) 11 85 A(a) FHF 000 (f2) 0.75 V-0 1:33 UL94 V-0, V-1, V-2 CELANESE GENERIC RESIN TYPE MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Liquid Crystal Polymer (LCP) A130(+), MT1310 1.50 V-0 1:40 Polyamide 66 (PA66) A3 GF 25 V0XI, A G5 FR C4 0.40 V-0 1:25 Polybutylene Terephthalate (PBT) 2012-2 1.50 V-0 1:20 2016(b) 1.50 V-0 1:20 3112-2 1.50 V-0 1:20 3116(b) 1.50 V-0 1:20 3216(b) 1.50 V-0 1:20 3310-2(f2) 1.50 V-0 1:20 3311-3(f2) 1.50 V-0 1:20 3316(b) 1.50 V-0 1:20 3316(b), 3316HF 1.50 V-0 1:20 COVESTRO GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polycarbonate (PC) 2407 + (z)(f1) 0.75-2.60 V-2 1:10 2807 + MAS183 0.75 V-2 1:25 6455 + (z) 3.00 V-0 1:25 1.50 V-2 1:25 6485 + (z)(f1) 1.50 V-0 1:25 Polycarbonate/ Acrylonitrile Butadiene Styrene (PC/ABS) FR110 + 1.50 V-0 1:33 FR3005 HF + (z), FR3005 HF + BBS314 1.50 V-0 1:12.5 FR3010 + (z) 3.00 V-0 1:25 1.50 V-0 1:25 FR3010 HF + 3.00 V-0 1:25 FR3030 + 3.00 V-0 1:25 UL94 V-0, V-1, V-2 DSM GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polyamide 46 (PA46) TE250F6(h1)(j) 0.50 V-0 1:25 Polyamide 6 (PA6) F223-D(f1), F223-D /A(f1) 0.75 V-2 1:25 K222-KGV5(f1) 0.75 V-2 1:16.7 1.50 V-2 1:16.7 K-FKGS6/B(f1)(y) 0.80 V-0 1:25 Polyamide 66 (PA66) SG-KGS6/HV 0.75 V-0 1:25 Thermoplastic Elastomer (TPE) PL460-S 1.60 V-0 1:25 Polyamide 4T (PA4T) T11 (h) 0.40 V-0 1:20 DOMO GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polyamide (PA) J 60X1 V30 0.40 V-0 1:25 Polyamide 6 (PA6) PSB 286 0.80 V-2 1:25 3.00 V-2 1:25 Polyamide 66 (PA66) A 205F(r4) 0.38 V-2 1:25 A 225F 0.75 V-2 1:25 A 50H1 (r3)(f2) 0.40 V-0 1:25 A 30G1 0.40 V-0 1:25 DUPONT UL94 V-0, V-1, V-2 GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polyamide (PA) 132F(+)(f1), 135F(+)(f1) 0.75 V-2 1:20 HTNFR42G30NH 0.40 V-0 1:25 Polyamide 6/12 (PA6/12) 151, 151L 1.50 V-2 1:25 Polyamide 66 (PA66) 101(r9)(f1), 101F(r9)(f1), 101L(r9)(f1), E101(r9)(f1), E101L(r9)(f1) 0.75 V-2 1:20 103FHS(+), 103HSL(+), RN5077E(+), E103HSL(+) 0.75 V-2 1:20 A428 0.75 V-0 1:20 FE3757(+) 0.75 V-2 1:25 FR15(+) 0.75 V-0 1:20 FR50(+)(f1) 0.35 V-0 1:20 FR7025V0F(+) 0.50 V-0 1:33 Polyamide 66/6 (PA66/6) FR72G25V0 0.80 V-0 1:25 Polyamide 66/6T (PA66/6T) FR95G25V0NH 0.40 V-0 1:25 Polyamide 6T/66 (PA6T/66) HTNFR52G15AL 0.75 V-0 1:33 HTNFR52G30BL(r3) 0.75 V-0 1:33 HTNFR52G30L(+), FE15502(+), HTNFR52G30AL(+) 0.75 V-0 1:33 HTNFR52G30NH(r6) 0.40 V-0 1:25 0.75 V-0 1:10 HTNFR52G35BL 0.75 V-0 1:25 HTNFR52G35L(+), HTNFR52G35AL 0.75 V-0 1:33 Polyamide 6T/ MPMDT HTNFR51G35L(+) 0.81 V-0 1:33 Polybutylene Terephthalate (PBT) LW9030FR 1.50 V-0 1:25 S650FR 1.50 V-0 1:25 SK642FR 1.50 V-0 1:25 SK652FR1 1.50 V-0 1:16.5 T841FR (r4) 1.50 V-0 1:25 Polyethylene Terephthalate (PET) FR530(l)(+)(f1), FR530L(l)(+)(f1) 0.75 V-0 1:25 Thermoplastic Elastomer (TPE) HTR8068 1.60 V-0 1:25 UL94 V-0, V-1, V-2 EXXONMOBIL GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Ethylene Propylene Thermoplastic Rubber (EPTR) 251-80W232(f7) 1.50 V-2 1:20 251-92W232 1.50 V-0 1:20 251-70W232 1.50 V-0 1:10 1.00 V-2 1:10 LANXESS GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polyamide 6 (PA6) B30S+(f1) 1.50 V-2 1:25 B31SK+ 1.50 V-2 1:25 Polybutylene Terephthalate (PBT) B4235+ 1.50 V-0 1:10 TP364-302+, BF4232+(f1) 0.75 V-0 1:25 UL94 V-0, V-1, V-2 SABIC GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polybutylene Terephthalate (PBT) 310(w) 1.50 V-0 1:20 310SE0(w) 1.50 V-0 1:20 310SE0(w),310SE0R(w) 1.50 V-0 1:20 420SE0(f1)(w)(GG)(rr1) 1.50 V-0 1:20 420SE0(f1)(w)(GG)(rr2) 1.50 V-0 1:20 457(w) 1.50 V-0 1:20 457(w), 451(w) 1.50 V-0 1:20 553(a)(f1)(w) 1.50 V-0 1:20 553(a)(f1)(w), 553E(a)(f1)(w), 553U(a)(f1)(w) 1.50 V-0 1:20 553(w)(f1), 553M(w)(f1) 1.50 V-0 1:20 DR48(w) 1.50 V-0 1:20 DR48,DR48M 1.50 V-0 1:20 V4760(a2) 0.40 V-0 1:20 EXVX1259, ENH4550 0.40 V-0 1:20 771 0.75 V-0 1:25 Polybutylene Terephthalate/ Polycarbonate (PBT/PC) 357(f1)(w)(IC), 357M(f1)(w)(IC), 357U(f1)(w)(IC) 1.50 V-0 1:20 357(f1)(w)(IC), 357U(f1)(w)(IC) 1.50 V-0 1:20 357X(f1) 1.50 V-0 1:20 V3900WX(GG)(f1)(IA), V3901WX(GG)(f1)(IA) 3.00 V-0 1:20 1.50 V-0 1:20 357(w)(f2)(IC), 357M(w)(f2)(IC), 357U(w)(f2)(IC) 1.50 V-0 1:20 UL94 V-0, V-1, V-2 SABIC GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polycarbonate (PC) 221(f2) 1.50 V-2 1:25 221R(f2) 1.50 V-2 1:25 500(f2), 500R(f2) 3.00 V-0 1:33 503(f1) 3.00 V-0 10:1 1.50 V-0 10:1 503(f1), 503R(f1) 3.00 V-0 10:1 1.50 V-0 10:1 943(ab) 1.50 V-0 1:20 943(f1) 1.50 V-0 1:20 943(f1), 923(f1) 1.50 V-0 1:20 950A, 920ASR, FXD911A(GG), 940ASR 1.50 V-2 1:25 CFR7630(f1)(gg*) 1.50 V-0 1:25 ML5139R(f2) 3.00 V-0 1:33 950A, FXD911A(GG), 940ASR 3.00 V-0 1:25 943 1.50 V-0 1:20 920A 3.00 V-0 1:25 1.50 V-2 1:25 Polycarbonate/ Acrylonitrile Butadiene Styrene (PC/ABS) C2950 1.50 V-0 6:100 C6200(GG) 2.00 V-0 1:20 Acrylonitrile Styrene Acrylate/ Polycarbonate (ASA/PC) HRA222 (GG) 0.80 V-2 1:20 UL94 V-0, V-1, V-2 SOLVAY OTHERS GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polyphenyl Sulfone (PPSU) R-5100 (r1)(##), R-5000 (r1)(##) 1.50 V-0 1:10 Polyphthalamide (PPA) AFA-4133 V0(+) (*) 0.75 V-0 1:25 BASE RESIN MANUFACTURER GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO ALBIS Polypropylene (PP) PP 13 CV2 14 1.50 V-2 1:25 AVIENT Polyvinylchloride (PVC) M3700(X), M3755(X) 1.50 V-0 1:25 M3900 1.50 V-0 1:25 CHI MEI Acrylonitrile Butadiene Styrene (ABS) PA-765(+) 1.50 V-0 1:10 Polycarbonate/ Acrylonitrile Butadiene Styrene (PC/ABS) PC-510(+) 1.50 V-0 1:25 EMS-CHEMIE Polyamide 6 (PA6) Grilon A 26 V0 0.75 V-0 1:25 FORMOSA Polycarbonate (PC) #1700+(f2) 0.36-0.42 V-2 1:50 GEON Polyvinylchloride (PVC) 85891(f1) 1.70 V-0 1:20 85891(f2) 1.70 V-0 1:20 M3700(X) 1.50 V-0 1:25 M3900 1.50 V-0 1:10 1:25 INEOS Polystyrene (PS) 855 HV 3.00 V-1 100:4 INVISTA Polyamide 66 (PA66) FRU4800 XHL (r1) 0.40 V-0 1:25 U4820L (r1) 0.40 V-2 1:25 UL94 V-0, V-1, V-2 OTHERS BASE RESIN MANUFACTURER GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO KINGFA Polyamide 66 (PA66) PA66-R11G25 (##) 0.25 V-0 1:25 KURARAY Polyamide 9T (PA9T) GP2300S 0.40 V-0 1:25 LG CHEM Polycarbonate/ Acrylonitrile Butadiene Styrene (PC/ABS) LUPOY GP-5106-F 3.00 V-0 1:20 LOTTE CHEMICAL Acrylonitrile Butadiene Styrene (ABS) VH-0800(+) 1.50 V-0 1:25 Polycarbonate (PC) HN-1064(+) 0.75 V-2 1:10 1.50 V-0 1:10 1.20 V-1 1:10 Polystyrene (PS) VH-1800+ 3.00 V-0 1:25 1.50 V-0 1:25 MITSUBISHI Polycarbonate (PC) S-2000+(f1) 1.50-1.80 V-2 1:10 POLYMER PRODUCTS Polystyrene (PS) ZYNTAR 351 2.00 V-0 1:20 1.50 V-0 1:20 ZYNTAR 7000 2.00 V-0 1:25 ZYNTAR 702 2.00 V-0 1:25 8020 2.00 V-0 1:20 8120 2.00 V-0 1:20 8130 1.50 V-0 1:20 POLYMER RESOURCES Polycarbonate (PC) PC-FR1A-D, PC- FR2A-D, PC-FR3A-D 3.00 V-0 1:33 1.50 V-2 1:33 SUMITOMO Liquid Crystal Polymer (LCP) E6007LHF(ra) 0.30 V-0 1:25 E6007LHF-MR(gt) 0.20 V-0 1:12.5 UL94 V-0, V-1, V-2 OTHERS BASE RESIN MANUFACTURER GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO TORAY Polyamide 6 (PA6) 1017 1.60 V-2 1:16.5 Polyamide 66 (PA66) 3004-V0(rr), CM3004-V0(rr) 0.40 V-0 1:25 TRINSEO Polycarbonate (PC) 891(w) 1.10 V-0 1:25 WELLMAN Polyamide 66/6 (PA66/6) 220-N, 21L-N, 22L-N 1.50 V-2 1:25 WESTLAKE Polyvinylchloride (PVC) 6597(f1), HF-6597(f1) 1.50 V-0 1:25 SP-7107 (f1)(a) 3.00 V-0 1:25 5VA AND 5VB BASE RESIN MANUFACTURER GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING COLORS MAXIMUM LET-DOWN RATIO AVIENT Polyvinylchloride (PVC) M3900 1.50 5VB ALL 1:25 WHITE 1:10 COVESTRO Polycarbonate/ Acrylonitrile Butadiene Styrene (PC/ABS) FR3010 + (z) 3.00 5VA ALL 1:25 DUPONT Polyamide 66/6T (PA66/6T) FR95G25V0NH 1.50 5VA ALL 1:25 Polybutylene Terephthalate (PBT) LW9030FR 2.00 5VA BLACK 1:25 3.00 5VA ALL 1:25 SK642FR 1.50 5VA BLACK 1:25 GEON Polyvinylchloride (PVC) M3900 1.50 5VB ALL 1:25 WHITE 1:10 SABIC Polybutylene Terephthalate/ Polycarbonate (PBT/PC) V3900WX(GG)(f1)(IA), V3901WX(GG)(f1)(IA) 3.00 5VA ALL 1:20 1.844.4AVIENT www.avient.com Copyright © 2020, Avient Corporation.
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 reflects 2023 adjusted EBITDA guidance of $500M and estimated run-rate CAPEX of $110M. 2023E (%) 27 78 89 84 82 80 77 88 81 76 70 69 60 54 (6) Av ie nt KW R FU L PP G AV Y R PM FM C C E EC L AS H H XL H U N EM N SC L Avient Specialty Formulators Other Specialty / Chemical Companies MULTIPLE EXPANSION Source: Peer data per Bloomberg as of October 27, 2023 Note: Avient reflects 2023 adjusted EBITDA guidance of $500M and closing share price of $31.18.
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.
https://www.avient.com/investor-center/news/polyone-raises-outlook-fourth-quarter-2019-adjusted-earnings
Light-weighting solutions that replace heavier traditional materials like metal, glass and wood, which can improve fuel efficiency in all modes of transportation
Pro Forma for sale of PP&S.
https://www.avient.com/industries/packaging/cosmetics-packaging/applicators
Cutlery manufacturer expands product line with dishwasher-safe knife handles featuring stainless steel-filled Gravi-Tech™ compound
https://www.avient.com/sites/default/files/resources/POL%2520Sidoti%2520IR%2520Presentation%2520w%2520Non%2520GAAP%25203%252018%25202014.pdf
Use of Non-GAAP Measures Page 3 PolyOne Commodity to Specialty Transformation Page 4 • Continue specialty transformation • Targeting $2.50 Adjusted EPS by 2015, nearly double 2013 EPS • Drive double digit operating income and adjusted EPS growth • 17 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 • 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 • Volume driven, commodity producer • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures 2000-2005 2006 - 2009 2010 – 2013 2014 and beyond -150.00% -50.00% 50.00% 150.00% 250.00% 350.00% PolyOne S&P 500 Russell 2000 Dow Jones Chemical All time high of $38.38 March 7th, 2014 • 17 consecutive quarters of double digit EPS growth • 49% CAGR adjusted EPS expansion 2006-2013 • 2013 stock price increased 73% versus 30% growth in the S&P • More than seven fold increase in market cap: $0.5b $3.6b Strategy and Execution Drive Results Page 5 Appliance 4% Building & Construction 13% Wire & Cable 9% Electrical & Electronics 5% Consumer 10%Packaging 16% Industrial 12% HealthCare 11% Transportation 18% Misc. 2% United States 66% Europe 14% Canada 7% Asia 6% Latin America 7% PP&S 20% Specialty 53% Distribution 27% 0.12 0.27 0.21 0.13 0.68 0.82 1.00 1.31 2.50 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 $2.50 2006 2007 2008 2009 2010 2011 2012 2013 2015 Target Ad ju st ed E ar ni ng s P er S ha re 2013 Revenues: $3.8 Billion End Markets 2013 Revenues: $3.8 Billion EPS Page 6 PolyOne At A Glance Old PolyOne Transformation *Operating Income excludes corporate charges and special items 2% 34% 43% 62% 65- 75% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2013 2015 % o f O pe ra tin g In co m e* JV's Performance Products & Solutions Distribution Specialty Specialty OI $5M $46M $87M $195M Target Mix Shift Highlights Specialty Transformation 2015 Target Page 7 2006 2013 2015 “Where we were” “Where we are” Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 12.2% 12 – 16% Global Specialty Engineered Materials 1.1% 9.3% 12 – 16% Designed Structures & Solutions -- 5.6% 8 – 10% Performance Products & Solutions 5.4% 7.2% 9 – 12% Distribution 2.6% 5.9% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 62% 65 – 75% 3) ROIC* (after-tax) 5.0% 9.1% 15% 4) Adjusted EPS Growth N/A 31% Double Digit Expansion Proof of Performance & 2015 Goals *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period Page 8 Bridge To $2.50 Adjusted EPS By 2015 2015 EPS: $2.50 2013 EPS: $1.31 Mid single digit revenue CAGR Page 9 Mergers & Acquisitions Spartech accretion Incremental share buybacks Ongoing LSS Programs (50-100 bps/yr) Accelerated Innovation & Mix Improvement Innovation Drives Earnings Growth $20.3 $52.3 2006 2013 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* *Percentage of Specialty Platform revenue from products introduced in last five years Page 10 14.3% 30.7% 2006 2013 Specialty Platform Gross Margin % 19.5% 43.0% 2006 2013 Healthcare Consumer Packaging and Additive Technology Transportation Page 11 Unique and Innovative Solutions that Help Customers Win https://www.dropbox.com/sh/dwe4t8aacvhb8ui/uD3p_bdglP/Presentation revise pics/GLS Beverage can closure XO 2.jpg https://www.dropbox.com/sh/dwe4t8aacvhb8ui/-YgkycKypw/Anti-Counterfeiting release & images/GN1979.JPG Net Debt / EBITDA* = 1.8x $48 $317 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Significant Debt Maturities As of December 31, 2013 ($ millions) Page 12 Coupon Rates: 7.500% 7.375% 5.250% Debt Maturities & Pension Funding – 12/31/13 *TTM 12/31/2013 ** includes US-qualified plans only 60% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2013 Pension Funding** As of December 31, 2013 Free Cash Flow and Strong Balance Sheet Fund Investment •Targets that expand our: • Specialty offerings •End market presence •Geographic footprint •Operating Margin • Synergy opportunities •Adjacent material solutions •Expanding our sales, marketing, and technical capabilities • Investing in operational and LSS initiatives (including synergy capture) •Manufacturing alignment Organic Growth Share Repurchases Dividends Acquisitions Page 13 $0.16 $0.20 $0.24 $0.32 $0.00 $0.10 $0.20 $0.30 $0.40 2011 2012 2013 2014 Annual Dividend • Repurchased ~5 million shares in 2013 • 15 million shares are available for repurchase under the current authorization The New PolyOne: A Specialty Growth Company 2015 Target: $2.50 Adjusted EPS Why Invest In PolyOne?
Reconciliation to Condensed Consolidated Balance Sheets 2013 Short-term debt and current portion of long-term debt $ 12.7 Long-term debt 976.2 Less cash and cash equivalents (365.2) Net debt $ 623.7 Adjusted EBITDA 2013 Income before income taxes $ 151.0 Interest expense, net 63.5 Depreciation and amortization 108.8 Special items in EBITDA 31.7 Adjusted EBITDA $ 355.0 2 Platform sales and operating income (OI) 2006Y* 2013Y Global Specialty Engineered Materials sales $ 345.3 $ 615.5 Global Color, Additives and Inks sales 531.8 852.3 Designed Structures and Solutions sales - 597.4 Specialty Platform sales 877.1 2,065.2 Performance Products and Solutions sales 1,166.2 773.2 PolyOne Distribution sales 732.8 1,075.2 Corporate and eliminations (153.7) (142.4) Total sales $ 2,622.4 $ 3,771.2 Global Specialty Engineered Materials OI $ 3.9 $ 57.2 Global Color, Additives and Inks OI 8.9 104.0 Designed Structures & Solutions OI - 33.4 Specialty Platform OI 12.8 194.6 Performance Products and Solutions OI 64.2 56.0 PolyOne Distribution OI 19.2 63.3 Sunbelt Joint Venture OI 102.9 - Corporate and eliminations (4.6) (52.4) Special items in OI 39.1 (30.0) Operating income GAAP 233.6 231.5 Sunbelt equity income (107.0) - Special items in OI (39.1) 30.0 Adjusted operating income $ 87.5 $ 261.5 Global Specialty Engineered Materials - OI % of sales 1.1% 9.3% Global Color, Additives and Inks - OI % of sales 1.7% 12.2% Designed Structures & Solutions - OI % of sales - 5.6% Specialty platform OI - % of sales 1.5% 9.4% PP&S operating OI - % of sales 5.5% 7.2% Distribution OI - % of sales 2.6% 5.9% PolyOne OI adjusted - % of sales 3.3% 6.9% * Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.