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PolyOne Corporation Investor Day 2012 CFA Society Cleveland Midwest Investment Conference 2013 PolyOne Investor Presentation November 19, 2013 • In this presentation, statements that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
Use of Non-GAAP Measures Page 3 -150.00% -50.00% 50.00% 150.00% 250.00% 350.00% PolyOne S&P 500 Page 4 All time high of $32.32 October 21st, 2013 • 16 consecutive quarters of double digit EPS growth • 42% CAGR adjusted EPS expansion 2006-2012 • YTD stock price has increased 56% versus 22% growth in the S&P • Six fold increase in market cap: $0.5b $3.0b Strategy and Execution Drive Results PP&S 15% Specialty 60% Distribution 25% 0.12 0.27 0.21 0.13 0.68 0.82 1.00 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* 2015 Target Ad ju st ed E ar ni ng s P er S ha re Appliance 6% Building & Construction 13% Wire & Cable 9% Electrical & Electronics 4% Consumer 9% Packaging 18% Industrial 10% Misc. 5% HealthCare 9% Transportation 16% Textiles 1% United States 70% Europe 14% Canada 8% Asia 5% Latin America 3% 2012 Revenues: $4.0 Billion* End Markets* 2012 Revenues: $4.0 Billion* EPS Page 5 * Pro Forma includes FY2012 results for Spartech (11/03/12 YE) and Glasforms & excludes discontinued operations PolyOne At A Glance * Restated to exclude discontinued operations Old PolyOne Transformation *Operating Income excludes corporate charges and special items 2% 34% 43% 63% 65- 75% 0% 20% 40% 60% 80% 100% 2005 2008 2010 YTD 2013 2015 % o f O pe ra tin g In co m e* JV's PP&S Distribution Specialty Specialty OI $5M $46M $87M $153M Target Mix Shift Highlights Specialty Transformation 2015 Target Page 6 2006 YTD 2013 2015 Where we were Where we are Organic Consolidated Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 12.8% 12.8% 12 – 16% Global Specialty Engineered Materials 1.1% 10.8% 8.9% 12 – 16% Designed Structures & Solutions — — 5.0% 8 – 10% Performance Products & Solutions 5.5% 8.0% 8.2% 9 – 12% Distribution 2.6% 6.1% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 63% 65 – 75% 3) ROIC* (after-tax) 5.0% 9.4% 15% 4) Adjusted EPS Growth N/A 28% 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 7 *Percentage of Specialty Platform revenue from products introduced in last five years 19.5% 44.0% 2006 Q3 2013 $20.3 $46.6 2006 TTM Q3'13 14.3% 31.0% 2006 Q3 2013 Research & Development Spending Specialty Platform Vitality Index Progression* Innovation Drives Earnings Growth ($ millions) Specialty Platform Gross Margin % Page 8 We are Experts in Polymer Science and Formulation Polymer Science Formulation Chemistry Processing Inputs Base Resins Additives Modifiers Colorants Specialized Polymer Materials, Services, and Solutions Expertise Satisfied Consumers PolyOne Customer Innovative Products & Services Marketplace Demands Performance Requirements Value Drivers Page 9 Positioned for Strong Growth 2015 Target Rev: $5B Adj.
Average Debt Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Average PolyOne Debt $ 705.2 $ 706.9 $ 1,055.5 $ 1,031.2 $ 987.7 $ 897.3 Average Equity Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Average PolyOne shareholders’ equity $ 629.3 $ 629.1 $ 871.8 $ 993.9 $ 996.6 $ 824.1 Reconciliation to Condensed Consolidated Balance Sheets YTD 2013 Short-term debt and current portion of long-term debt $ 9.9 Long-term debt 977.8 Less cash and cash equivalents (322.8) Net debt $ 664.9 Adjusted EBITDA Q4 2012 Q1 2013 Q2 2013 Q3 2013 Total PolyOne Income before income taxes $ (1.1) $ 15.7 $ 62.9 $ 38.8 $ 116.3 PolyOne Interest expense, net 13.7 15.6 16.6 16.0 61.9 PolyOne Depreciation and amortization 15.5 19.0 25.8 30.3 90.6 PolyOne Special items in EBITDA 26.5 27.7 (5.2) 11.2 60.2 PolyOne Adjusted EBITDA 54.6 78.0 100.1 96.3 329.0 Pro forma Spartech EBITDA 14.7 11.2 - - 25.9 Pro forma EBITDA $ 69.3 $ 89.2 $ 100.1 $ 96.3 $ 354.9 CFA Society Cleveland �Midwest Investment Conference 2013��PolyOne Investor Presentation �November 19, 2013� Forward – Looking Statements Use of Non-GAAP Measures Strategy and Execution Drive Results PolyOne�At A Glance Mix Shift Highlights Specialty Transformation Proof of Performance & 2015 Goals Innovation Drives Earnings Growth We are Experts in Polymer Science and Formulation Positioned for Strong Growth Q3 2013 Financial Highlights Debt Maturities & Liquidity Summary – 9/30/13 Use of Cash Why Invest In PolyOne?
https://www.avient.com/sites/default/files/2021-04/avnt-first-quarter-2021-news-release.pdf
We specialize in formulating sustainable solutions to meet our customers’ toughest challenges, and I am proud of how well our team has delivered throughout the COVID- 19 pandemic and recent supply chain disruptions.”
Refer to Attachment 7 Reconciliation of Non-GAAP Financial Measures for details regarding adjustments to previously reported results to arrive to the pro forma financial metrics. $1.74 $1.93 $2.80 2019PF 2020PF 2021E Adjusted EPS (1) + 61% (1) (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition 4 Webcast Details The webcast can be viewed live at avient.com/investors, or by clicking here: https://edge.media- server.com/mmc/p/eaivs28r.
Reconciliation of Pro Forma Adjusted Earnings per Share: Three Months Ended March 31, 2020 Net income from continuing operations attributable to Avient shareholders $ 33.1 Special items, after tax (Attachment 3) 8.6 Adjusted net income from continuing operations excluding special items 41.7 Clariant MB pro forma adjustments to net income from continuing operations(2) 7.8 Pro forma adjusted net income from continuing operations attributable to Avient shareholders $ 49.5 Weighted average diluted shares 86.7 Pro forma impact to diluted shares from January 2020 equity offering 6.1 Pro forma weighted average diluted shares 92.8 Adjusted EPS - excluding special items pro forma for Clariant MB acquisition $ 0.53 Year Ended December 31, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share: Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(2) 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 (2) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition 14 Year Ended December 31, 2019 Reconciliation of Pro Forma Adjusted Earnings per Share: Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(3) 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 (3) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition 15 Reconciliation of EBITDA by Segment Three Months Ended March 31, Year Ended December 31, 2021 2020 2020 2019 2018 Operating income: Color, Additives and Inks $ 88.8 $ 40.5 $ 180.8 $ 147.4 $ 158.5 Specialty Engineered Materials 34.2 22.3 94.4 83.7 72.3 Distribution 24.0 19.4 69.5 75.4 71.5 Corporate and eliminations (26.6) (29.4) (155.4) (149.7) (123.7) Operating income $ 120.4 $ 52.8 $ 189.3 $ 156.8 $ 178.6 Items Below OI in Corporate Other income, net $ 1.5 $ 1.6 $ 24.3 $ 12.1 $ (12.9) Depreciation & Amortization: Color, Additives and Inks $ 27.4 $ 10.9 $ 75.1 $ 42.7 $ 44.3 Specialty Engineered Materials 7.8 7.5 30.0 29.5 23.2 Distribution 0.2 0.1 0.7 0.5 0.7 Corporate and eliminations 1.7 1.4 9.2 5.4 4.4 Depreciation & Amortization $ 37.1 $ 19.9 $ 115.0 $ 78.1 $ 72.6 EBITDA Color, Additives and Inks $ 116.2 $ 51.4 $ 255.9 $ 190.1 $ 202.8 Specialty Engineered Materials 42.0 29.8 124.4 113.2 95.5 Distribution 24.2 19.5 70.2 75.9 72.2 Corporate and eliminations (24.9) (28.0) (146.2) (144.3) (119.3) EBITDA $ 159.0 $ 74.3 $ 328.6 $ 247.0 $ 238.3 EBITDA as a % of Sales: Color, Additives and Inks 19.1 % 20.0 % 17.0 % 18.9 % 19.4 % Specialty Engineered Materials 19.4 % 16.1 % 17.6 % 15.2 % 14.8 % Distribution 6.7 % 6.7 % 6.3 % 6.4 % 5.7 % 16 Reconciliation of Pro Forma EBITDA - Color, Additives and Inks Three Months Ended March 31, Year Ended December 31, 2020 2020 2019 2018 Sales: Color, Additives and Inks $ 256.5 $ 1,502.9 $ 1,003.8 $ 1,046.5 Clariant MB pro forma adjustments(4) 279.4 540.4 1,118.6 1,209.8 Pro forma sales $ 535.9 $ 2,043.3 $ 2,122.4 $ 2,256.3 Operating income: Color, Additives and Inks $ 40.5 $ 180.8 $ 147.4 $ 158.5 Clariant MB pro forma adjustments(4) 23.0 45.0 72.9 80.3 Pro forma operating income $ 63.5 $ 225.8 $ 220.3 $ 238.8 Depreciation & amortization: Color, Additives and Inks $ 10.9 $ 75.1 $ 42.7 $ 44.3 Clariant MB pro forma adjustments(4) 15.1 30.1 60.3 61.2 Pro forma depreciation & amortization $ 26.0 $ 105.2 $ 103.0 $ 105.5 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA): Color, Additives and Inks $ 51.4 $ 255.9 $ 190.1 $ 202.8 Clariant MB pro forma adjustments(4) 38.1 75.1 133.2 141.5 Pro forma EBITDA $ 89.5 $ 331.0 $ 323.3 $ 344.3 Pro forma EBITDA as a % of Sales 16.7 % 16.2 % 15.2 % 15.3 % Three Months Ended March 31, Year Ended December 31, Reconciliation to Adjusted EBITDA: 2021 2020 2020 2019 2018 Net income from continuing operations – GAAP $ 79.7 $ 33.1 $ 133.8 $ 75.7 $ 87.4 Income tax expense 22.9 11.9 5.2 33.7 14.4 Interest expense 19.3 9.4 74.6 59.5 62.8 Debt extinguishment cost — — 1.1 Depreciation and amortization from continuing operations 37.1 19.9 115.0 78.1 72.6 EBITDA $ 159.0 $ 74.3 $ 328.6 $ 247.0 $ 238.3 Special items, before tax 2.4 9.6 66.2 61.7 59.5 Interest expense included in special items — — (10.1) — — Accelerated depreciation included in special items (0.5) — (3.2) — (3.0) Adjusted EBITDA $ 160.9 $ 83.9 $ 381.6 $ 308.7 $ 294.8 Reconciliation of Pro Forma Sales: Three Months Ended March 31, 2020 Sales $ 711.5 Clariant MB pro forma adjustment to sales(4) 279.4 Pro forma sales $ 990.9 (4) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) 17 Avient Announces Record First Quarter 2021 Results; Increases Full Year Guidance.pdf NEWS RELEASE 4.29 232pm News Release (002).pdf