https://www.avient.com/sites/default/files/2023-01/Avient Audit Committee Charter.pdf
Discuss with management and the independent auditor the effect of regulatory and accounting
initiatives, as well as off-balance-sheet structures on the Company’s financial statements.
6.
https://www.avient.com/sites/default/files/2023-02/AVNT Q4 2022 Earnings Press Release-1.pdf
We then paid down $950 million of debt, providing us a strong balance
sheet to navigate through this period of macro-economic uncertainty.”
3
“We have never wavered from our goal of becoming a specialty formulator.
2) Tax adjustments include the net tax benefit/(expense) from non-recurring income tax items, adjustments to uncertain tax position reserves and
deferred income tax valuation allowances.
11
Attachment 4
Avient Corporation
Condensed Consolidated Balance Sheets (Unaudited)
(In millions)
Year Ended
December 31,
2022 2021
ASSETS
Current assets:
Cash and cash equivalents $ 641.1 $ 601.2
Accounts receivable, net 440.6 439.9
Inventories, net 372.7 305.8
Current assets held for sale — 360.2
Other current assets 115.3 119.9
Total current assets 1,569.7 1,827.0
Property, net 1,049.2 672.3
Goodwill 1,671.9 1,284.8
Intangible assets, net 1,597.6 925.2
Operating lease assets, net 60.4 58.2
Non-current assets held for sale — 22.0
Other non-current assets 136.2 207.7
Total assets $ 6,085.0 $ 4,997.2
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term and current portion of long-term debt $ 2.2 $ 8.6
Accounts payable 454.4 429.5
Current operating lease obligations 17.0 21.1
Current liabilities held for sale — 141.3
Accrued expenses and other current liabilities 395.8 340.2
Total current liabilities 869.4 940.7
Non-current liabilities:
Long-term debt 2,176.7 1,850.3
Pension and other post-retirement benefits 67.2 99.9
Deferred income taxes 342.5 100.6
Non-current operating lease obligations 40.9 37.3
Non-current liabilities held for sale — 13.1
Other non-current liabilities 235.5 164.8
Total non-current liabilities 2,862.8 2,266.0
SHAREHOLDERS' EQUITY
Avient shareholders’ equity 2,334.5 1,774.7
Noncontrolling interest 18.3 15.8
Total equity 2,352.8 1,790.5
Total liabilities and equity $ 6,085.0 $ 4,997.2
12
Attachment 5
Avient Corporation
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Year Ended
December 31,
2022 2021
Operating activities
Net income $ 703.4 $ 230.6
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of business, net of tax expense (550.1) —
Depreciation and amortization 157.6 144.2
Accelerated depreciation 5.5 1.7
Amortization of inventory step-up 34.4 1.5
Deferred income tax expense (benefit) 0.5 (27.3)
Share-based compensation expense 13.2 11.2
Changes in assets and liabilities, net of the effect of acquisitions:
Decrease (increase) in accounts receivable 32.6 (143.1)
Decrease (increase) in inventories 14.0 (141.0)
Increase in accounts payable 10.7 95.3
Increase (decrease) in pension and other post-retirement benefits 7.1 (10.9)
Taxes paid on gain on divestiture (2.8) —
(Decrease) increase in accrued expenses and other assets and liabilities, net (27.7) 71.6
Net cash provided by operating activities 398.4 233.8
Investing activities
Capital expenditures (105.5) (100.6)
Business acquisitions, net of cash acquired (1,426.1) (47.6)
Settlement of foreign exchange derivatives 93.3 —
Proceeds from divestiture 928.2 —
Other investing activities 6.1 (2.0)
Net cash used by investing activities (504.0) (150.2)
Financing activities
Debt offering proceeds 1,300.0 —
Purchase of common shares for treasury (36.4) (4.2)
Cash dividends paid (86.8) (77.7)
Repayment of long-term debt (956.8) (18.5)
Payments on withholding tax on share awards (4.3) (10.7)
Debt financing costs (49.3) —
Other financing activities — (3.5)
Net cash provided (used) by financing activities 166.4 (114.6)
Effect of exchange rate changes on cash (20.9) (17.3)
Increase (decrease) in cash and cash equivalents 39.9 (48.3)
Cash and cash equivalents at beginning of year 601.2 649.5
Cash and cash equivalents at end of year $ 641.1 $ 601.2
13
Attachment 6
Avient Corporation
Business Segment Operations (Unaudited)
(In millions)
Operating income at the segment level does not include: special items as defined in Attachment 3; corporate general and
administration costs that are not allocated to segments; intersegment sales and profit eliminations; share-based compensation
costs; and certain other items that are not included in the measure of segment profit and loss that is reported to and reviewed by
the chief operating decision maker.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Goldman%2520Sachs%2520Conference%2520-%2520November%25202015.pdf
PolyOne Corporation Page 4
PolyOne Commodity to Specialty Transformation
• Volume driven,
commodity producer
• Heavily tied to
cyclical end markets
• Performance largely
dependent on non-
controlling joint
ventures
2000-2005 2006 - 2009 2010 – 2014 2015 and beyond
• Steve Newlin
appointed, Chairman,
President and CEO
• New leadership team
appointed
• Implementation of four
pillar strategy
• Focus on value based
selling, investment in
commercial resources
and innovation to drive
transformation
• Substantial EPS growth
from $0.13 to all-time
high of $1.80
• Shift to faster growing,
high margin, less
cyclical end markets
• Key acquisitions propel
current and future
growth, as well as
margin expansion
• Specialty mix expands
to 65% of Operating
Income – strongest mix
of earnings in history
• Accelerating growth
• Deliver consistent
double digit annual
EPS growth
• Maintain >35% vitality
index
• Pursue strategic
acquisitions that
expand specialty
offerings and
geographic breadth
• Invest and grow
current and next
generation talent
PolyOne Corporation Page 5
Appliances
5%
Building &
Construction
12%
Consumer
10%
Electrical &
Electronics
5%
Healthcare
11%
Industrial
14%
Packaging
14%
Transportation
20%
Wire & Cable
9%
Distribution
28%
PP&S
20%
Specialty
52%
United States
69%
Europe
13%
Canada
7% Asia
6%
Latin America
5%
2014 Revenues: $3.8 Billion
End Markets
2014 Revenues: $3.8 Billion
PolyOne
At A Glance
$0.12
$0.27 $0.21
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
2006 2007 2008 2009 2010 2011 2012 2013 2014
Adjusted EPS
PolyOne Corporation Page 6
Old
PolyOne
*Operating Income excludes corporate charges and special items
2%
34% 43%
62%
65% 66%
0%
20%
40%
60%
80%
100%
2005 2008 2010 2013 2014 YTD 2015 2020
%
o
f O
pe
ra
tin
g
In
co
m
e*
JV's Performance Products & Solutions Distribution Specialty
80%+
Specialty OI $5M $46M $87M $195M $242M $183M
Mix Shift Highlights Specialty Transformation
Transformation
2020
Platinum
Vision
Platinum
Vision
PolyOne Corporation Page 7
2006 YTD 2015 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 17.2% 20%+
Global Specialty Engineered
Materials 1.1% 15.1% 20%+
Designed Structures & Solutions 1.4% (2012) 3.5% 12 – 14%
Performance Products &
Solutions 5.5% 8.1% 10 – 12%
Distribution 2.6% 6.6% 6.5 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 66% 80%+
3) ROIC 5.0% 11.9% 15%
4) Adjusted EPS Growth N/A
24 Consecutive
Quarters of YOY
EPS Growth
Double Digit
Expansion
Proof of Performance & 2020 Goals
PolyOne Corporation Page 8
Innovation Drives Earnings Growth
*Percentage of Specialty Platform revenue from products introduced in last five years
$20
$52
2006 TTM
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
28%
2006 TTM
Specialty Platform
Gross Margin %
12%
43%
2006 TTM
Specialty Vitality Index Target ≥ 35%
TTM 9/30/15 TTM 9/30/15 TTM 9/30/15
PolyOne Corporation Page 9
Innovation Pipeline Potential
Prototype Frame
Opportunity
Scale-up & Test
Market
Build
Business Case
Commercial
Launch
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
12
4
9
6
1
6
3 7 4
5
6
1
1
7
2
Breakthrough
Platform
Derivative
Number of Projects 12 10 23 19 10 74
Specialty
Addressable Market
($ millions)
- - $1,150 $1,000 $250 $2,400
PolyOne Corporation Page 10
Lightweighting with Advanced Composites
Increasing Healthcare Penetration
Innovation Initiatives
Expansion in Consumer Markets
New Market Development
$$$ $$ $
High Temperature Polymers
PolyOne Corporation Page 11
Design and Service as a Differentiator
Right Material &
Color
Desired
Product Design
Appropriate
Manufacturing Process
Delivering Concept to
Commercialization
Connecting
the Dots with
iQ Design Labs and
InVisiO Color Design
PolyOne Corporation Page 12
Customer First Through World-Class Service
Strengthening relationships through:
Providing LSS services to small/medium sized customers
• Supporting customers who lack their own formal process improvement initiatives
Providing training in Customer Centric Selling Skills with customers’
sales force
PolyOne Corporation Page 13
60%
97%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 Q3 2015
Pension Funding**
As of September 30, 2015
Debt Maturities & Pension Funding
Net Debt / Adjusted EBITDA** = 2.1x
$49
$121
$317
$600
$400
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2018 2020 2023
Debt Maturities
As of September 30, 2015
($ millions)
Coupon Rate: 7.500% Variable* 7.375% 5.250%
** includes US-qualified pension plans only *Weighted average rate on revolver was 2.49% as of 9/30/15 **TTM 9/30/2015
PolyOne Corporation Page 14
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
Expanding our sales,
marketing, and
technical capabilities
Investing in operational
and LSS initiatives
~75% of capital
expenditures fund
growth initiatives Organic
Growth
Acquisitions
Share
Repurchases
Dividends
$0.16
$0.20
$0.32
$0.40
$0.48
$0.10
$0.20
$0.30
$0.40
$0.50
2011 2012 2013 2014 2015 2016
Annual Dividend
Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material
solutions
Repurchased nearly
2.4 million shares in Q3
2015
Repurchased 14.8
million shares since
early 2013
5.2 million shares are
available for
repurchase under the
current authorization
$0.24
PolyOne Corporation Page 15
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
Trailing twelve months adjusted gross margin is calculated as follows:
Three Months
Ended
Nine Months
Ended
Trailing Twelve Months
(TTM) Ended
(In millions) December 31, 2014 September 30, 2015 September 30, 2015
Gross margin - GAAP $ 152.6 $ 524.6 $ 677.2
Special items in gross margin 15.8 30.0 45.8
Gross margin excluding special items $ 168.4 $ 554.6 $ 723.0
Adjusted EBITDA and net debt to adjusted EBITDA is calculated as follows:
Three Months
Ended
Nine Months
Ended
Trailing Twelve
Months (TTM) Ended
(In millions) December 31, 2014 September 30, 2015 September 30, 2015
Income from continuing operations,
before income taxes $ (31.2) $ 168.1 $ 136.9
Interest expense, net 15.6 48.5 64.1
Depreciation and amortization 25.0 78.4 103.4
Special items, impact on income from
continuing operations before income
taxes
80.8 39.8 120.6
Accelerated depreciation included in
special items (0.2) (4.6) (4.8)
Adjusted EBITDA $ 90.0 $ 330.2 $ 420.2
Short-term portion and current portion of
long-term debt $ 61.8
Long-term debt 1,038.0
Less: Cash and cash equivalents (235.7)
Net Debt 864.1
Net Debt/TTM Adjusted EBITDA 2.1
��PolyOne Investor Presentation�Goldman Sachs 2015 US Emerging/�SMID Cap Growth Conference�November 2015��
Forward-Looking Statements
Use of Non-GAAP Measures
PolyOne Commodity to Specialty Transformation
PolyOne�At A Glance
Mix Shift Highlights Specialty Transformation
Proof of Performance & 2020 Goals
Innovation Drives Earnings Growth
Innovation Pipeline Potential
Innovation Initiatives
Design and Service as a Differentiator
Customer First Through World-Class Service
Debt Maturities & Pension Funding
Free Cash Flow and Strong Balance Sheet �Fund Investment / Shareholder Return
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Jefferies%2520Industrials%2520Conference%25202015.pdf
S&P 500
PolyOne Corporation Page 9
2006 YTD 2015 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 17.2% 20%+
Global Specialty Engineered
Materials 1.1% 15.3% 20%+
Designed Structures & Solutions 1.4% (2012) 3.3% 12 – 14%
Performance Products &
Solutions 5.5% 7.6% 10 – 12%
Distribution 2.6% 6.5% 6.5 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 67% 80%+
3) ROIC (after-tax)* 5.0% 11.7% 15%
4) Adjusted EPS Growth N/A
23 Consecutive
Quarters of YOY
EPS Growth
Double Digit
Expansion
Proof of Performance & 2020 Goals
*ROIC is defined as TTM adjusted operating income after-tax divided by the sum of average debt and equity over a 5 quarter period
PolyOne Corporation Page 10
Platinum Vision: Pathway to Accelerated Growth
Organic
Sales Growth
Margin
Expansion
Share
Repurchases
Acquisitions
PolyOne Corporation Page 11
Innovation Drives Earnings Growth
*Percentage of Specialty Platform revenue from products introduced in last five years
$20
$53
2006 2014
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
27%
2006 2014
Specialty Platform
Gross Margin %
20%
44%
2006 2014
Specialty Vitality Index Target ≥ 35%
PolyOne Corporation Page 12
Megatrends Aligned with Key End Markets
Decreasing
Dependence
on Fossil
Fuels
Protecting
the
Environment
Improving
Health and
Wellness
Megatrend End Markets
Globalizing
and
Localizing
Health &
Wellness
Transportation
Packaging
Consumer
PolyOne Corporation Page 13
Prototype Frame
Opportunity
Scale-up &
Test Market
Build
Business Case
Commercial
Launch
Phase
1
Phase
2
Phase
3
Phase
4
Phase
5
6
9
7
3
5
12
5 3 2
8
4
2
4
3
1
Breakthrough
Platform
Derivative
A Rich Pipeline of Opportunity
Number of Projects 14 8 18 12 22 74
Addressable Market
($ millions)
$700 $600 $600 $1,900
PolyOne Corporation Page 14
60%
102%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 Q2 2015
Pension Funding**
As of June 30, 2015
Debt Maturities & Pension Funding
Net Debt / Adjusted EBITDA** = 2.0x
Coupon Rate: 7.500% Variable* 7.375% 5.250%
** includes US-qualified pension plans only *Weighted average rate on revolver was 2.40% as of 6/30/15 **TTM 6/30/2015
$49
$79
$317
$600
$400
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2018 2020 2023
Debt Maturities
As of June 30, 2015
($ millions)
PolyOne Corporation Page 15
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
Expanding our sales,
marketing, and
technical capabilities
Investing in operational
and LSS initiatives
~75% of capital
expenditures fund
growth initiatives Organic
Growth
Acquisitions
Share
Repurchases
Dividends
$0.16
$0.20
$0.24
$0.32
$0.40
$0.10
$0.20
$0.30
$0.40
$0.50
2011 2012 2013 2014 2015
Annual Dividend
Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material
solutions
Repurchased nearly
600K shares in Q2
2015
Repurchased 12.4
million shares since
early 2013
7.6 million shares are
available for
repurchase under the
current authorization
PolyOne Corporation Page 16
PolyOne Core Values
Innovation
Collaboration
Excellence
PolyOne Corporation Page 17
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt
extinguishment costs; employee separation costs resulting from personnel reduction programs, plant phase-in costs, executive separation agreements; asset impairments; mark-to-market
adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties, remediation costs and related
insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and
losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of
the performance period; unrealized gains and losses from foreign currency option contracts; one-time, non-recurring items; and the effect of changes in accounting principles or other such
laws or provisions affecting reported results.
(2) Tax adjustments include the net tax expense (benefit) from one-time income tax items and deferred income tax valuations allowance adjustments.
3
Net debt to adjusted EBITDA is calculated as follows:
Six Months
Ended
Twelve Months
Ended Six Months Ended
Trailing Twelve
Months (TTM)
Ended
(In millions) March 31, 2014 December 31, 2014 March 31, 2015 March 31, 2015
Short-term portion and current portion of
long-term debt $ 12.7 $ 61.8 $ 61.8
Long-term debt 967.9 962.0 996.4
Less: Cash and cash equivalents (261.5) (238.6) (236.8)
Net Debt $ 719.1 785.2 821.4
Income before income taxes $ 73.2 $ 88.4 $ 116.7 $ 131.9
Interest expense, net 31.2 62.2 32.3 63.3
Depreciation and amortization 72.2 123.9 50.1 101.8
Special items, impact on operating income 62.2 164.9 21.2 123.9
Accelerated depreciation included in special
items (20.5) (23.1) (0.3) (2.9)
Adjusted EBITDA $ 218.3 $ 416.3 $ 220.0 $ 418.0
Net Debt/TTM Adjusted EBITDA 2.0
POL IR Presentation - Jefferies Industrials Conference 2015 website
��PolyOne Investor Presentation�Jefferies 2015 Industrials Conference�August 2015��
Forward-Looking Statements
Use of Non-GAAP Measures
PolyOne Commodity to Specialty Transformation
PolyOne�At A Glance
Mix Shift Highlights Specialty Transformation
Confirmation of Our Strategy
Strategy and Execution Drive Results
Proof of Performance & 2020 Goals
Platinum Vision: Pathway to Accelerated Growth
Innovation Drives Earnings Growth
Megatrends Aligned with Key End Markets
A Rich Pipeline of Opportunity
Debt Maturities & Pension Funding
Free Cash Flow and Strong Balance Sheet �Fund Investment / Shareholder Return
PolyOne Core Values
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/resources/Wells%2520Fargo%2520Conference%2520-%2520IR%2520Presentation%25205-6-2015%2520-%2520wNon%2520GAAP%2520and%2520Appendix.pdf
S&P 500
PolyOne Corporation Page 9
2006 Q1 2015 2015 Target
“Where we were” “Where we are” (Est. in 2012)
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 16.2% 12 – 16%
Global Specialty Engineered
Materials 1.1% 16.3% 12 – 16%
Designed Structures & Solutions 1.4% (2012) 2.7% 8 – 10%
Performance Products &
Solutions 5.5% 6.5% 9 – 12%
Distribution 2.6% 5.9% 6 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 69% 65 – 75%
3) ROIC 5.0% 11.4% 15%
4) Adjusted EPS Growth N/A 5% Double Digit Expansion
Proof of Performance & 2015 Goals
PolyOne Corporation Page 10
Innovation Drives Earnings Growth
*Percentage of Specialty Platform revenue from products introduced in last five years
$20
$53
2006 2014
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
27%
2006 2014
Specialty Platform
Gross Margin %
20%
44%
2006 2014
Specialty Vitality Index Target ≥ 35%
PolyOne Corporation Page 11
Megatrends Aligned with Key End Markets
Decreasing
Dependence
on Fossil
Fuels
Protecting
the
Environment
Improving
Health and
Wellness
Megatrend End Markets
Globalizing
and
Localizing
Health &
Wellness
Transportation
Packaging
Consumer
PolyOne Corporation Page 12
Prototype Frame
Opportunity
Scale-up &
Test Market
Build
Business Case
Commercial
Launch
Phase
1
Phase
2
Phase
3
Phase
4
Phase
5
4
11
5
10
6
9
3 4 2
15
9
1
10
4
Breakthrough
Platform
Derivative
A Rich Pipeline of Opportunity
Number of Projects 25 14 19 17 18 93
Addressable Market
($ millions)
$800 $450 $450 $1,700
PolyOne Corporation Page 13
60%
98%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 Q1 2015
Pension Funding**
As of March 31, 2015
Debt Maturities & Pension Funding – 3/31/15
Net Debt / EBITDA* = 2.1x
$49
$317
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Debt Maturities
As of March 31, 2015
($ millions)
Coupon Rate: 7.500% 7.375% 5.250%
** includes US-qualified pension plans only *TTM 3/31/2015
PolyOne Corporation Page 14
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
Expanding our sales,
marketing, and
technical capabilities
Investing in operational
and LSS initiatives
~75% of capital
expenditures fund
growth initiatives Organic
Growth
Acquisitions
Share
Repurchases
Dividends
$0.16
$0.20
$0.24
$0.32
$0.40
$0.10
$0.20
$0.30
$0.40
$0.50
2011 2012 2013 2014 2015
Annual Dividend
Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material
solutions
Repurchased over
500k shares in Q1
2015
Repurchased 11.8
million shares since
early 2013
8.2 million shares are
available for
repurchase under the
current authorization
PolyOne Corporation Page 15
PolyOne Core Values
Innovation
Collaboration
Excellence
PolyOne Corporation Page 16
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
Net debt to adjusted EBITDA is calculated as follows:
Three Months
Ended
Twelve Months
Ended
Three Months
Ended
Trailing Twelve
Months (TTM)
Ended
(In millions) March 31, 2014 December 31, 2014 March 31, 2015 March 31, 2015
Short-term portion and current portion of
long-term debt $ 12.8 $ 61.8 $ 61.9
Long-term debt 968.1 962.0 1,049.2
Less: Cash and cash equivalents (238.3) (238.6) (226.4)
Net Debt $ 742.6 785.2 884.7
Income before income taxes $ 39.9 $ 88.4 $ 53.3 $ 101.8
Interest expense, net 15.5 62.2 16.1 62.8
Depreciation and amortization 32.8 123.9 25.1 116.2
Special items, impact on operating income 22.9 164.9 9.3 151.3
Accelerated depreciation included in special
items (6.8) (23.1) (0.1) (16.4)
Adjusted EBITDA $ 104.3 $ 416.3 $ 103.7 $ 415.7
Net Debt/TTM Adjusted EBITDA 2.1
POL IR Presentation - Updated for 2015 - 5-5-15 WF
��PolyOne Investor Presentation�Wells Fargo Industrial & Construction Conference�May 2015��
Forward-Looking Statements
Use of Non-GAAP Measures
PolyOne Commodity to Specialty Transformation
PolyOne�At A Glance
Mix Shift Highlights Specialty Transformation
Confirmation of Our Strategy
Strategy and Execution Drive Results
Proof of Performance & 2015 Goals
Innovation Drives Earnings Growth
Megatrends Aligned with Key End Markets
A Rich Pipeline of Opportunity
Debt Maturities & Pension Funding – 3/31/15
Free Cash Flow and Strong Balance Sheet �Fund Investment / Shareholder Return
PolyOne Core Values
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520–%2520Goldman%2520Sachs%2520Conference%25202015.pdf
S&P 500
PolyOne Corporation Page 9
2006 Q1 2015 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 16.2% 20%+
Global Specialty Engineered
Materials 1.1% 16.3% 20%+
Designed Structures & Solutions 1.4% (2012) 2.7% 12 – 14%
Performance Products &
Solutions 5.5% 6.5% 10 – 12%
Distribution 2.6% 5.9% 6.5 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 69% 80%+
3) ROIC 5.0% 11.4% 15%
4) Adjusted EPS Growth N/A
22 Consecutive
Quarters of
EPS Growth
Double Digit
Expansion
Proof of Performance & 2020 Goals
PolyOne Corporation Page 10
Platinum Vision: Pathway to Accelerated Growth
Organic
Sales Growth
Margin
Expansion
Share
Repurchases
Acquisitions
PolyOne Corporation Page 11
Innovation Drives Earnings Growth
*Percentage of Specialty Platform revenue from products introduced in last five years
$20
$53
2006 2014
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
27%
2006 2014
Specialty Platform
Gross Margin %
20%
44%
2006 2014
Specialty Vitality Index Target ≥ 35%
PolyOne Corporation Page 12
Megatrends Aligned with Key End Markets
Decreasing
Dependence
on Fossil
Fuels
Protecting
the
Environment
Improving
Health and
Wellness
Megatrend End Markets
Globalizing
and
Localizing
Health &
Wellness
Transportation
Packaging
Consumer
PolyOne Corporation Page 13
Prototype Frame
Opportunity
Scale-up &
Test Market
Build
Business Case
Commercial
Launch
Phase
1
Phase
2
Phase
3
Phase
4
Phase
5
6
9
7
3
5
12
5 3 2
8
4
2
4
3
1
Breakthrough
Platform
Derivative
A Rich Pipeline of Opportunity
Number of Projects 14 8 18 12 22 74
Addressable Market
($ millions)
$700 $600 $600 $1,900
PolyOne Corporation Page 14
60%
98%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 Q1 2015
Pension Funding**
As of March 31, 2015
Debt Maturities & Pension Funding
Net Debt / EBITDA* = 2.1x
$49
$317
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Debt Maturities
As of March 31, 2015
($ millions)
Coupon Rate: 7.500% 7.375% 5.250%
** includes US-qualified pension plans only *TTM 3/31/2015
PolyOne Corporation Page 15
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
Expanding our sales,
marketing, and
technical capabilities
Investing in operational
and LSS initiatives
~75% of capital
expenditures fund
growth initiatives Organic
Growth
Acquisitions
Share
Repurchases
Dividends
$0.16
$0.20
$0.24
$0.32
$0.40
$0.10
$0.20
$0.30
$0.40
$0.50
2011 2012 2013 2014 2015
Annual Dividend
Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material
solutions
Repurchased over
500k shares in Q1
2015
Repurchased 11.8
million shares since
early 2013
8.2 million shares are
available for
repurchase under the
current authorization
PolyOne Corporation Page 16
PolyOne Core Values
Innovation
Collaboration
Excellence
PolyOne Corporation Page 17
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt
extinguishment costs; employee separation costs resulting from personnel reduction programs, plant phase-in costs, executive separation agreements; asset impairments; mark-to-market
adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties, remediation costs and related
insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and
losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of
the performance period; unrealized gains and losses from foreign currency option contracts; one-time, non-recurring items; and the effect of changes in accounting principles or other such
laws or provisions affecting reported results.
(2) Tax adjustments include the net tax expense (benefit) from one-time income tax items and deferred income tax valuations allowance adjustments.
3
Net debt to adjusted EBITDA is calculated as follows:
Three Months
Ended
Twelve Months
Ended
Three Months
Ended
Trailing Twelve
Months (TTM)
Ended
(In millions) March 31, 2014 December 31, 2014 March 31, 2015 March 31, 2015
Short-term portion and current portion of
long-term debt $ 12.8 $ 61.8 $ 61.9
Long-term debt 968.1 962.0 1,049.2
Less: Cash and cash equivalents (238.3) (238.6) (226.4)
Net Debt $ 742.6 785.2 884.7
Income before income taxes $ 39.9 $ 88.4 $ 53.3 $ 101.8
Interest expense, net 15.5 62.2 16.1 62.8
Depreciation and amortization 32.8 123.9 25.1 116.2
Special items, impact on operating income 22.9 164.9 9.3 151.3
Accelerated depreciation included in special
items (6.8) (23.1) (0.1) (16.4)
Adjusted EBITDA $ 104.3 $ 416.3 $ 103.7 $ 415.7
Net Debt/TTM Adjusted EBITDA 2.1
Goldman Sachs - May 19 2015 r4
Goldman Sachs - May 19 2015
POL IR Presentation - Updated for 2015 - 5-13-15 GS
��PolyOne Investor Presentation�Goldman Sachs Basic Materials Conference�May 2015��
Forward-Looking Statements
Use of Non-GAAP Measures
PolyOne Commodity to Specialty Transformation
PolyOne�At A Glance
Mix Shift Highlights Specialty Transformation
Confirmation of Our Strategy
Strategy and Execution Drive Results
Proof of Performance & 2020 Goals
Platinum Vision: Pathway to Accelerated Growth
Innovation Drives Earnings Growth
Megatrends Aligned with Key End Markets
A Rich Pipeline of Opportunity
Debt Maturities & Pension Funding
Free Cash Flow and Strong Balance Sheet �Fund Investment / Shareholder Return
PolyOne Core Values
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/2025-05/Avient Announces First Quarter 2025 Results_0.pdf
We are focused on executing
what we can influence, which includes staying close to our customers, winning share and new
business, proactively working to offset raw material or tariff-related inflation, controlling our
costs and strengthening our balance sheet.
2) Tax adjustments include the net tax impact from non-recurring income tax items and certain adjustments to uncertain tax position reserves
and valuation allowances.
9
Attachment 4
Avient Corporation
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited)
March 31, 2025 December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents $ 456.0 $ 544.5
Accounts receivable, net 489.6 399.5
Inventories, net 372.8 346.8
Other current assets 111.9 131.3
Total current assets 1,430.3 1,422.1
Property, net 951.8 955.3
Goodwill 1,684.0 1,659.7
Intangible assets, net 1,464.5 1,450.4
Other non-current assets 280.6 323.6
Total assets $ 5,811.2 $ 5,811.1
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term and current portion of long-term debt $ 7.8 $ 7.7
Accounts payable 422.2 417.4
Accrued expenses and other current liabilities 268.2 331.0
Total current liabilities 698.2 756.1
Non-current liabilities:
Long-term debt 2,061.3 2,059.3
Deferred income taxes 268.0 260.4
Other non-current liabilities 469.3 405.7
Total non-current liabilities 2,798.6 2,725.4
SHAREHOLDERS' EQUITY
Avient shareholders’ equity 2,298.3 2,313.8
Noncontrolling interest 16.1 15.8
Total equity 2,314.4 2,329.6
Total liabilities and equity $ 5,811.2 $ 5,811.1
10
Attachment 5
Avient Corporation
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Three Months Ended
March 31,
2025 2024
Operating activities
Net (loss) income $ (19.9) $ 49.7
Adjustments to reconcile net (loss) income to net cash used by operating activities:
Depreciation and amortization 45.3 44.3
Cloud-based enterprise resource planning system impairment 71.6 —
Share-based compensation expense 2.4 3.3
Changes in assets and liabilities:
Increase in accounts receivable (83.7) (81.9)
Increase in inventories (20.3) (12.3)
(Decrease) increase in accounts payable (1.0) 1.7
Environmental insurance recovery 34.0 —
Decrease in incentive accruals (53.1) (16.8)
Accrued expenses and other assets and liabilities, net (26.4) (30.8)
Net cash used by operating activities (51.1) (42.8)
Investing activities
Capital expenditures (12.5) (24.4)
Proceeds from plant closures — 2.0
Other investing activities — (2.1)
Net cash used by investing activities (12.5) (24.5)
Financing activities
Payments on long-term borrowings — (2.7)
Cash dividends paid (24.7) (23.5)
Other financing activities (3.6) (1.9)
Net cash used by financing activities (28.3) (28.1)
Effect of exchange rate changes on cash 3.4 (6.1)
Decrease in cash and cash equivalents (88.5) (101.5)
Cash and cash equivalents at beginning of year 544.5 545.8
Cash and cash equivalents at end of period $ 456.0 $ 444.3
11
Attachment 6
Avient Corporation
Business Segment Operations (Unaudited)
(In millions)
Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) at the segment level does not
include: special items as defined in Attachment 3; corporate general and administration costs that are not allocated to
segments; intersegment sales and profit eliminations; share-based compensation costs; and certain other items that are not
included in the measure of segment profit and loss that is reported to and reviewed by the chief operating decision maker.
https://www.avient.com/sites/default/files/2021-05/2021-colormatrix-quick-guide-to-liquid-color_0.pdf
available from Avient
POLYMERS
• PET
• Polyolefins
• PVC
COLOR TYPES*
• Tints
• Translucents
• Opaques
• Special effects
• Additive additions
(functional colors)
PROCESSES
• Injection Stretch
Blow Molding (ISBM)
• Injection molding
• Extrusion Blow
Molding (EBM)
• Extrusion Sheet,
Fiber, Film
Avient ColorMatrix has pioneered the development of liquid
color dispersions since the 1970s and is now considered the
leading global innovator and supplier of liquid colorants for
thermoplastic and silicone applications.
https://www.avient.com/sites/default/files/2021-05/2021-colormatrix-quick-guide-to-liquid-color.pdf
available from Avient
POLYMERS
• PET
• Polyolefins
• PVC
COLOR TYPES*
• Tints
• Translucents
• Opaques
• Special effects
• Additive additions
(functional colors)
PROCESSES
• Injection Stretch
Blow Molding (ISBM)
• Injection molding
• Extrusion Blow
Molding (EBM)
• Extrusion
Sheet, Fiber, Film
Avient ColorMatrix has pioneered the development of liquid
color dispersions since the 1970s and is now considered the
leading global innovator and supplier of liquid colorants for
thermoplastic and silicone applications.
https://www.avient.com/sites/default/files/2021-09/neu-sales-terms-and-conditions.9-16-212.pdf
Buyer acknowledges that
Seller has furnished to Buyer Safety Data Sheets, which include
warnings together with safety and health information concerning
the Product and/or the containers for such Product.