https://www.avient.com/sites/default/files/2021-06/avient-ir-presentation-may-2021-w-non-gaap-recs.pdf
Operating Income $3,783 $4,100 2020PF 2021E Adjusted EPS (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition Previous Guidance Current Guidance $3,783 $4,300 2020PF 2021E $308 $360 2020PF 2021E $308 $410 2020PF 2021E $1.93 $2.40 2020PF 2021E $1.93 $2.80 2020PF 2021E (1) (1)(1) (1)(1) (1) (in millions) (in millions) $442 $457 $560 2019PF 2020PF 2021E $1.74 $1.93 $2.80 2019PF 2020PF 2021E FULL YEAR 2019 – 2021 ORGANIC GROWTH (TOTAL COMPANY) 23 Sales Adjusted EBITDA $3,981 $3,783 $4,300 2019PF 2020PF 2021E + 8% Adjusted EPS (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition (1) (1) (in millions) (in millions) (1)(1) + 27% + 61% (1) (1) 24 BALANCE SHEET • Deleveraging to 1.9x net debt to adjusted EBITDA by the end of 2021 • Driven by record adjusted EBITDA performance and strong free cash flow generation from asset light business • Future cash deployment: M&A, opportunistic share repurchases and balance sheet / continued leverage reduction 3.5x 2.7x 1.9x 2019PF 2020PF 2021E Net Debt / Adjusted EBITDA (1) (1) ($ in millions) 2021E Adjusted EBITDA 560$ Free Cash Flow 275$ Total Debt 1,860 Less: Cash (800) Net Debt 1,060$ 2021E Net Debt / Adjusted EBITDA 1.9x (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition PEER COMPARISONS 25 As a specialty formulator, we don’t require significant capital investment, as compared to the base resin raw material suppliers we purchase from.
D is t. ) K W R R P M P P G A V Y F U L G C P IF F H X L F M C F O E H U N E C L K R A E M N A S H C E S C L G R A A LB Median: 5%Median: 3% Source: Peer data per Bloomberg market data as of April 27, 2021 Avient reflects 2021 estimated revenue of $4,300M and excludes one-time synergy capture CAPEX ($20M) Avient Specialty Formulators Other Chemical/Specialty Companies Free Cash Flow Conversion (1) 2021E (%) Being asset light helps us to generate strong free cash flow that is in line with specialty formulators.
Free cash flow conversion calculated as (EBITDA – Capex) / EBITDA Median: 84% Median: 77% HIGH FREE CASH FLOW CONVERSION Avient reflects 2021 estimated EBITDA of $560M and excludes one-time synergy capture CAPEX ($20M) Source: Peer data per Bloomberg market data as of April 27, 2021 87 89 87 86 82 81 76 88 87 84 82 81 78 77 77 77 76 73 70 69 50 19 A vi en t K W R P P G R P M A V Y F U L G C P F M C IF F H X L U N V R E C L A S H C E B N R F O E E M N G R A H U N K R A S C L A L B Source: Peer data per Bloomberg market data as of April 27, 2021 Total Enterprise Value / 2021E EBITDA Our current valuation with updated guidance implies an EBITDA multiple that is below specialty formulator peers and the majority of our chemical peers.
https://www.avient.com/sites/default/files/resources/PolyOne%2520Investor%2520Presentation%2520Longbow%2520Basic%2520Materials%2520Conference%2520-%2520March%25202016.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 – 2015 2016 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 $1.96 • 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 • 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 25 Consecutive Quarters of EPS Growth Note: 2009 has not been restated for subsequent changes in accounting principles or discontinued operations -$0.10 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 2009 2010 2011 2012 2013 2014 2015 Adjusted Earnings Per Share -2% 0% 2% 4% 6% 8% 10% 12% 2009 2010 2011 2012 2013 2014 2015 Adjusted Consolidated Operating Margin 2.8% 5.2% 5.6% 6.7% 8.3% 6.9% 9.5% PolyOne Corporation Page 6 2015 Revenues: $3.4 Billion End Markets 2015 Revenues: $3.4 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 2015 Adjusted EPS United States 66% Europe 13% Canada 7% Asia 7% Latin America 7% Appliances 4% Building & Construction 12% Consumer 10%Electrical & Electronics 5% Healthcare 11% Industrial 14% Packaging 13% Textiles 2% Transportation 20% Wire & Cable 9% Distribution 29% PP&S 20% Specialty 51% $1.96 PolyOne Corporation Page 7 Old PolyOne *Operating Income excludes corporate charges and special items 2% 43% 65% 0% 20% 40% 60% 80% 100% 2005 2010 2015 2020 % o f O pe ra tin g In co m e* JV's Performance Products & Solutions Distribution Specialty 80%+ Specialty OI $5M $87M $229M Mix Shift Highlights Specialty Transformation Transformation 2020 Platinum Vision Platinum Vision PolyOne Corporation Page 8 Color and Engineered Materials at the Heart of Specialty Transformation OPERATING MARGIN 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 14.7% 16.7% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 Platinum Vision COLOR, ADDITIVES AND INKS 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 12.1% 14.7% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 Platinum Vision SPECIALTY ENGINEERED MATERIALS PolyOne Corporation Page 9 2006 2015 2020 “Where we were” “Where we are” Platinum Vision 1) Operating Income % Specialty: Color, Additives & Inks 1.7% 16.7% 20%+ Specialty Engineered Materials 1.1% 14.7% 20%+ Designed Structures & Solutions 1.4% (2012) 3.0% 12 – 14% Performance Products & Solutions 5.5% 8.3% 10 – 12% Distribution 2.6% 6.6% 6.5 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 65% 80%+ 3) ROIC* 5.0% 11.8% 15% 4) Adjusted EPS Growth N/A 25 Consecutive Quarters of YOY EPS Growth Double Digit Expansion Proof of Performance & 2020 Goals *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period PolyOne Corporation Page 10 Therma-Tech™ & Sheet GEON™ Vinyl Polymer Colorants Therma-Tech™ TPE’s & Film TPE + OnForce™ Gravi-Tech™ Page 10 Film Target End Markets… Healthcare PolyOne Corporation Page 11 TPE + OnForce (SEM) OnForce (SEM) Glasforms (SEM) TPE Vibration Dampening (SEM/GLS) TPE & Film (SEM + DSS) Glasforms (SEM) Polymer Colorants (CAI) Thermatech (SEM) Thermoplastic Elastomers (SEM) TPE + OnForce (SEM) OnForce (SEM) Thermoplastic Elastomers (SEM) Glasforms (SEM) Polymer Colorants (CAI) Sheet (DSS) Source: Outdoor Industry Association Target End Markets… Outdoor High Performance PolyOne Corporation Page 12 Sound & Vibration Management Fuel Handling Systems Interior & Exterior Trim Structural Braces & Brackets Interior Structural Components Lighting Air management Electronics & Cameras Fluid Handling Target End Markets… Automotive Underhood Components Roof Systems PolyOne Corporation Page 13 Target End Markets… Packaging PreservaPak™ OnColor™ Smart Batch™ VersaFlex™ TPE Cap Liner ColorMatrix™ Amosorb™ Oxygen Scavenger ColorMatrix™ Ultimate™ UV Light Barrier OnCap™ Laser Marking Additives PolyOne Corporation Page 14 Innovation Drives Earnings Growth *Specialty Platform revenue from products introduced in last five years $20 $53 2006 2015 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 28% 2006 2015 Specialty Platform Gross Margin 12% 43% 2006 2015 Target ≥ 35% Innovation Pipeline Potential PolyOne Corporation Page 15 2,883 2,414 2006 2015 Volume (lbs in millions) -16% $103 $192 2006 2015 Commercial, R&D and Marketing Spending ($M) +86% $303 $721 2006 2015 Adjusted Gross Margin ($M) +138% Investing to Drive Growth Ours Is Not a Cost Cutting Story PolyOne Corporation Page 16 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 17 Customer First Through World-Class Service Strengthening relationships through: Providing LSS services to small/medium sized customers Providing training in Customer Centric Selling Skills with customers World’s Best Business Process Excellence Program in 2012* World’s Best Start-up program for Lean Six Sigma Deployment in 2009* 81% 93% 2006 2015 16.2% 9.7% 2006 2015 On-Time Delivery Working Capital % of Sales 52% of associates trained in LSS Five consecutive years – CFO Magazine Best Working Capital Management in the chemical industry Commitment to Operational Excellence PolyOne Corporation Page 18 60% 97% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 Q4 2015 Pension Funding** As of December 31, 2015 Debt Maturities & Pension Funding Net Debt / Adjusted EBITDA*= 2.1x ** includes US-qualified pension plans only *TTM 12/31/2015 $550 $600 $200 $300 $400 $500 $600 $700 $800 2022 2023 Debt Maturities As of December 31, 2015 ($ millions) Coupon Rate: 3.750% 5.250% PolyOne Corporation Page 19 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 1.0 million shares in Q4 2015 Repurchased 15.8 million shares since early 2013 4.2 million shares are available for repurchase under the current authorization $0.24 PolyOne Corporation Page 20 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
Addressable market exceeds $40 billion Strong performance demonstrates that our strategy and execution are working Megatrends and emerging opportunities align with our strengths Innovation and services provide differentiation, incremental pricing power, and competitive advantage Strong and proven management team driving growth and performance PolyOne Corporation Page 21 Appendix PolyOne Corporation Page 22 Recent Acquisitions Kraton TPE Assets Magenta Master Fibers February 2016 – Acquired Kraton’s thermoplastic elastomer (TPE) assets Serve personal care, medical, packaging (protective film) and electronics applications Purchase price of $72 million represents a multiple of 9x EBITDA Adds $35 million in annual revenue and $0.03 accretive to 2016 adjusted EPS Expands GLS presence in consumer, healthcare, transportation, and packaging end markets December 2015 – Acquired Magenta Master Fibers, an innovative developer of specialty color concentrates for the global fiber industry Purchase price of $22 million represents a multiple of 6.8x EBITDA Adds $16 million in annual revenue and $0.01 accretive to 2016 adjusted EPS Broadens portfolio of colorant and additives technologies for fiber applications and extends existing reach into strategic end markets such as transportation and consumer goods Medical Baby Care Electronics Food Packaging Automotive Textiles Home Textiles Clothing Outdoor PolyOne Corporation Page 23 $0.82 $1.00 $1.31 $1.80 $1.96 $0.00 $0.75 $1.50 $2.25 2011 2012 2013 2014 2015 Adjusted EPS 2015 Full Year Financial Highlights Color Additives & Inks operating margin reached record level of 16.7% Specialty Engineered Materials operating margin grew 260 basis points year-over-year to 14.7% Adjusted EPS has grown on average 24% per year since 2011 $50 $75 $104 $125 $135 $0 $40 $80 $120 $160 2011 2012 2013 2014 2015 CAI Operating Profit $46 $47 $57 $72 $80 $20 $40 $60 $80 $100 2011 2012 2013 2014 2015 SEM Operating Profit Note: $ in millions, except per share data PolyOne Corporation Page 24 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 16.7% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 Operating Income % of Sales At a Glance Color, Additives and Inks 2015 Revenues: $0.8 Billion Solutions Expanding Profits 2015 Revenue by Industry Segment 14.7% Platinum Vision United States 48% Europe 33% Canada 2% Asia 12% Latin America 5% Appliances 2% Building & Construction 11% Consumer 8% Electrical & Electronics 1% Healthcare 6% Industrial 13% Packaging 31% Textiles 8% Transportation 9% Wire & Cable 11% PolyOne Corporation Page 25 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 14.7% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 Operating Income % of Sales At a Glance Specialty Engineered Materials 2015 Revenues: $0.5 Billion Solutions 2015 Revenue by Industry Segment Expanding Profits Platinum Vision 12.1% United States 49% Europe 29% Canada 2% Asia 20% Appliances 3% Building & Construction 3% Consumer 20% Electrical & Electronics 16% Healthcare 11% Industrial 8% Packaging 5% Transportation 19% Wire & Cable 15% PolyOne Corporation Page 26 1.4% 5.6% 7.3% 3.0% 12-14% 2012 2013 2014 2015 2020 Operating Income % of Sales At a Glance Designed Structures and Solutions Solutions 2015 Revenues: $0.5 Billion Expanding Profits 2015 Revenue by Industry Segment Platinum Vision Appliances, 3% Building & Construction 9% Consumer 5% Healthcare 7% Industrial 24% Packaging 19% Transportation 33% United States 97% Canada 3% PolyOne Corporation Page 27 Appliances 7% Building & Construction 31% Consumer 5% Electrical & Electronics 3% Healthcare 1% Industrial 13% Packaging 5% Transportation 19% Wire & Cable 16% 5.5% 6.9% 3.8% 3.6% 5.5% 4.3% 6.3% 7.2% 8.3% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 Operating Income % of Sales At a Glance Performance Products and Solutions Solutions Expanding Profits 2015 Revenues: $0.7 Billion 10-12% Platinum Vision 2015 Revenue by Industry Segment 7.7% United States 79% Canada 14% Asia 2% Latin America 5% PolyOne Corporation Page 28 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% 6.4% 5.9% 6.6% 6.5-7.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 Operating Income % of Sales 15% 53% 2006 Q4 2015 At a Glance Distribution Key Suppliers 2015 Revenues: $1.0 Billion ROIC Expanding Profits 6.1% Platinum Vision Appliances 6% Building & Construction 4%Consumer 13% Electrical & Electronics 6% Healthcare 23% Industrial 16% Packaging 4% Transportation 24% Wire & Cable 4% http://www.polyone.com/Pages/VariationRoot.aspx PolyOne Corporation Page 29 2 lbs Plastic = 3 lbs aluminum or 8 lbs steel or 27 lbs glass 33% less material by weight than aluminum 75% less material by weight than steel 93% less material by weight than glass Requires 91% less energy to recycle a pound of plastic versus a pound of paper Source: SPI: Sustainability and the Plastics Industry Plastics: Key to Future Sustainable Development PolyOne Corporation Page 30 Application Examples PolyOne Corporation Page 31 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 Source: Outdoor Industry Association PolyOne Corporation Page 32 $1.5 billion attractive, growing market Additives improve performance and reduce cost through light-weighting, reduced waste, faster cycle times, and extended shelf life of finished product Aligned with megatrend of protecting the environment: Sustainability benefits include lower package weight and improved recyclability of package at end of use Market Opportunity Leading Global Supplier of Additives In Growing PET Market Shelf-life extension Greater product consistency Recyclability and reduced carbon footprint Color and Special Effects Weight reduction Enhanced product aesthetics High heat resistance PET Bottling Technology 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2009 2014 2019 Asia Pacific North America Latin America Western Europe Eastern Europe Middle East and Africa Global PET Packaging Growth 2009-2019 Source: Euromonitor retail off-trade consumption (PET bottles & jars, home care, personal care, food & non-alcoholic beverages) B ill io n un its 5% CAGR PolyOne Corporation Page 33 • Includes formulation and consultative services to assist manufacturers and brand owners in positively identifying their finished goods • Protects brand equity & consumer welfare • Reduces exposure to unwarranted recall expenses • Secures supply chain integrity – support for safe expansion into new geographies Authentication Technology PolyOne Corporation Page 34 Metal Replacement Solutions • Replaces metal in LED lighting • Extends LED durability and life span eliminating hot spots • Greater design flexibility with fewer parts • Weight reduction • Simplifies manufacturing and lowers total production cost PolyOne Corporation Page 35 • Color harmonization across 15 unique color-and-polymer combinations • Eliminated need for multiple pre- colored materials • Reduced Land Rover’s working capital Range Rover Evoque Interior PolyOne Corporation Page 36 • Reduced health and environmental impact • System cost reduction • Radiation-shielding performance • Parts consolidation • Design freedom CT Scanner PolyOne Corporation Page 37 High-Barrier Packaging Containers • Capability to extrude up to 13 layers • Strong oxygen and moisture vapor transmission protection • Can be made symmetrical or asymmetrical to meet customized needs of broad variety of applications • Barrier protection and superior sensory properties PolyOne Corporation Page 38 Aerospace Applications • Leading provider of specialty materials for the aerospace industry • Typical applications Mil-spec aircraft windows, canopies, windscreens, instrument panels, wingtip lenses Interior – gallery furnishings, tray tables, arm rests, trim strips, joint/edge coverings • Benefits: High impact strength Resistant to UV rays Flame and smoke compliance Easy to clean with aggressive cleaners; anti-microbial grades available Range of sizes, thicknesses, colors, etc. 1 Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with U.S.
POL IR Presentation - February 2016 2.26.2016 ��PolyOne Investor Presentation�March 2016�� Forward-Looking Statements Use of Non-GAAP Measures PolyOne Commodity to Specialty Transformation 25 Consecutive Quarters of EPS Growth PolyOne�At A Glance Mix Shift Highlights Specialty Transformation Color and Engineered Materials at the�Heart of Specialty Transformation Proof of Performance & 2020 Goals Slide Number 10 Slide Number 11 Slide Number 12 Slide Number 13 Innovation Drives Earnings Growth Investing to Drive Growth 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/2021-06/avient-ir-presentation-june-2021-w-non-gaap-recs_0.pdf
Operating Income $3,783 $4,100 2020PF 2021E Adjusted EPS (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition Previous Guidance Current Guidance $3,783 $4,300 2020PF 2021E $308 $360 2020PF 2021E $308 $410 2020PF 2021E $1.93 $2.40 2020PF 2021E $1.93 $2.80 2020PF 2021E (1) (1)(1) (1)(1) (1) (in millions) (in millions) $442 $457 $560 2019PF 2020PF 2021E $1.74 $1.93 $2.80 2019PF 2020PF 2021E FULL YEAR 2019 – 2021 ORGANIC GROWTH (TOTAL COMPANY) 23 Sales Adjusted EBITDA $3,981 $3,783 $4,300 2019PF 2020PF 2021E + 8% Adjusted EPS (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition (1) (1) (in millions) (in millions) (1)(1) + 27% + 61% (1) (1) 24 BALANCE SHEET • Deleveraging to 1.9x net debt to adjusted EBITDA by the end of 2021 • Driven by record adjusted EBITDA performance and strong free cash flow generation from asset light business • Future cash deployment: M&A, opportunistic share repurchases and balance sheet / continued leverage reduction 3.5x 2.7x 1.9x 2019PF 2020PF 2021E Net Debt / Adjusted EBITDA (1) (1) ($ in millions) 2021E Adjusted EBITDA 560$ Free Cash Flow 275$ Total Debt 1,860 Less: Cash (800) Net Debt 1,060$ 2021E Net Debt / Adjusted EBITDA 1.9x (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition PEER COMPARISONS 25 As a specialty formulator, we don’t require significant capital investment, as compared to the base resin raw material suppliers we purchase from.
D is t. ) K W R R P M P P G A V Y F U L G C P H X L F M C F O E IF F H U N E C L A S H E M N K R A C E S C L G R A A LB Median: 5%Median: 3% Source: Peer data per Bloomberg market data as of June 4, 2021 Avient reflects 2021 estimated revenue of $4,300M and excludes one-time synergy capture CAPEX ($20M) Avient Specialty Formulators Other Chemical/Specialty Companies Free Cash Flow Conversion (1) 2021E (%) Being asset light helps us to generate strong free cash flow that is in line with specialty formulators.
Free cash flow conversion calculated as (EBITDA – Capex) / EBITDA Median: 84% Median: 78% HIGH FREE CASH FLOW CONVERSION Avient reflects 2021 estimated EBITDA of $560M and excludes one-time synergy capture CAPEX ($20M) Source: Peer data per Bloomberg market data as of June 4, 2021 87 89 87 86 83 81 76 88 85 83 82 81 80 78 78 78 76 72 71 69 50 18 A vi en t K W R P P G R P M A V Y F U L G C P F M C H X L U N V R IF F E C L A S H F O E C E E M N B N R H U N G R A K R A S C L A L B Source: Peer data per Bloomberg market data as of June 4, 2021 Total Enterprise Value / 2021E EBITDA Our current valuation with updated guidance implies an EBITDA multiple that is below specialty formulator peers and the majority of our chemical peers.
https://www.avient.com/sites/default/files/2021-09/avnt-seaport-conference-presentation.pdf
Operating Income $3,783 $4,300 2020PF 2021E Adjusted EPS (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition Previous Guidance Current Guidance $3,783 $4,650 2020PF 2021E $308 $410 2020PF 2021E $308 $430 2020PF 2021E $1.93 $2.80 2020PF 2021E $1.93 $3.00 2020PF 2021E (1) (1)(1) (1)(1) (1) (in millions) (in millions) $442 $457 $580 2019PF 2020PF 2021E $1.74 $1.93 $3.00 2019PF 2020PF 2021E FULL YEAR 2019 – 2021 ORGANIC GROWTH (TOTAL COMPANY) 22 Sales Adjusted EBITDA $3,981 $3,783 $4,650 2019PF 2020PF 2021E + 17% Adjusted EPS (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition (1) (1) (in millions) (in millions) (1)(1) + 31% + 72% (1) (1) ($ in millions) 2021E Adjusted EBITDA 580$ Free Cash Flow 280$ Total Debt 1,860 Less: Cash (755) Net Debt 1,105$ 2021E Net Debt / Adjusted EBITDA 1.9x 23 BALANCE SHEET • Acquisition of Magna Colours completed on July 1 – expands sustainable solutions portfolio through water-based inks technology • Deleveraging to 1.9x net debt to adjusted EBITDA by the end of 2021 • Driven by record adjusted EBITDA performance and strong free cash flow generation from asset light business • Future cash deployment: M&A, opportunistic share repurchases and balance sheet / continued leverage reduction 3.5x 2.7x 1.9x 2019PF 2020PF 2021E Net Debt / Adjusted EBITDA (1) (1) (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition SUSTAINABILITY FOR A BETTER TOMORROW 24 • Revenue from sustainable solutions expected to grow 14% in 2021 as our innovation efforts and collaboration with customers continues to accelerate • Investments centered around innovation and global sustainability megatrends o Enabling a circular economy – Technologies that allow for increased use of post-consumer recycled (PCR) material and improve recyclability of plastics o Light-weighting – Composites and CAI applications to reduce weight and material requirements, which minimize energy and carbon emissions o Eco-Conscious – Health and human safety applications as well as Avient’s alternative materials to replace lead, PVC, halogens, BPA and other less eco-friendly options 24 2016 2017 2018 2019 2020PF** Bio-polymers Reduced Energy Use Human Health & Safety Sustainable Infrastructure VOC Reduction Recycle Solutions Eco-Conscious Lightweighting Revenue From Sustainable Solutions* 2016-2020 $405M $455M *Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”) **2020 is Pro Forma to include full year of the Clariant Masterbatch business $340M $550M $790M 24 25 Key Updates • Includes Clariant Masterbatch performance • Increases disclosures and ESG data • Provides performance updates on 2030 Sustainability Goals • Commits to operational carbon neutrality in 2050 and 100% renewable energy by 2050 (RE 100) • Announces Avient’s participation in U.N.
D is t. ) K W R P P G A V Y F U L R P M G C P H X L F M C H U N IF F E C L A S H K R A E M N C E S C L A LB Median: 5%Median: 3% Source: Peer data per Bloomberg market data as of July 28, 2021 Avient reflects 2021 estimated revenue of $4,650M and excludes one-time synergy capture CAPEX ($20M) Avient Specialty Formulators Other Chemical/Specialty Companies Free Cash Flow Conversion (1) 2021E (%) Being asset light helps us to generate strong free cash flow that is in line with specialty formulators.
Free cash flow conversion calculated as (EBITDA – Capex) / EBITDA Median: 81% Median: 78% HIGH FREE CASH FLOW CONVERSION Avient reflects 2021 estimated EBITDA of $580M and excludes one-time synergy capture CAPEX ($20M) Source: Peer data per Bloomberg market data as of July 28, 2021 87 90 86 82 80 78 73 87 82 82 79 79 78 78 77 76 71 67 46 A vi en t K W R P P G A V Y F U L R P M G C P F M C U N V R C E IF F A S H E C L B N R E M N H X L H U N K R A S C L A L B (6) Source: Peer data per Bloomberg market data as of July 28, 2021 Total Enterprise Value / 2021E EBITDA Our current valuation with updated guidance implies an EBITDA multiple that is below specialty formulator peers and the median of other selected chemical / specialty companies.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Goldman%2520Sachs%2520Basic%2520Materials%2520Conference%2520-%2520May%25202016.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 – 2015 2016 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 $1.96 • 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 • 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 Confirmation of Our Strategy The World’s Premier Provider of Specialized Polymer Materials, Services and Solutions Specialization Globalization Operational Excellence Commercial Excellence Associates PolyOne Corporation Page 6 26 Consecutive Quarters of EPS Growth PolyOne Corporation Page 7 2015 Revenues: $3.4 Billion End Markets 2015 Revenues: $3.4 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 2015 Adjusted EPS United States 66% Europe 13% Canada 7% Asia 7% Latin America 7% Appliances 4% Building & Construction 12% Consumer 10%Electrical & Electronics 5% Healthcare 11% Industrial 14% Packaging 13% Textiles 2% Transportation 20% Wire & Cable 9% $1.96 Distribution 29% PP&S 20% CAI 23% SEM 15%DSS 13% PolyOne Corporation Page 8 Old PolyOne *Operating Income excludes corporate charges and special items 2% 43% 65% 0% 20% 40% 60% 80% 100% 2005 2010 2015 2020 % o f O pe ra tin g In co m e* JV's Performance Products & Solutions Distribution Specialty 80%+ Specialty OI $5M $87M $229M Mix Shift Highlights Specialty Transformation Transformation 2020 Platinum Vision Platinum Vision PolyOne Corporation Page 9 Color and Engineered Materials at the Heart of Specialty Transformation OPERATING MARGIN 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 14.7% 16.7% 17.0% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q'16 2020 Platinum Vision COLOR, ADDITIVES AND INKS 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 12.1% 14.7% 16.6% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q'16 2020 Platinum Vision SPECIALTY ENGINEERED MATERIALS PolyOne Corporation Page 10 2006 1Q 2016 2020 “Where we were” “Where we are” Platinum Vision 1) Operating Income % Specialty: Color, Additives & Inks 1.7% 17.0% 20%+ Specialty Engineered Materials 1.1% 16.6% 20%+ Designed Structures & Solutions N/A 2.5% (TTM) 8 – 10% Performance Products & Solutions 5.5% 11.9% 12 – 14% Distribution 2.6% 6.5% 6.5 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 61% 80%+ 3) ROIC* 5.0% 12.0% 15% 4) Adjusted EPS Growth N/A 22% Double Digit Expansion Proof of Performance & 2020 Goals *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period PolyOne Corporation Page 11 Therma-Tech™ & Sheet GEON™ Vinyl Polymer ColorantsTherma-Tech™ TPE’s & Film TPE + OnForce™ Gravi-Tech™ Page 11 Film Target End Markets… Healthcare PolyOne Corporation Page 12 TPE + OnForce (SEM) OnForce (SEM) Glasforms (SEM) TPE Vibration Dampening (SEM/GLS) TPE & Film (SEM + DSS) Glasforms (SEM) Polymer Colorants (CAI) Thermatech (SEM) Thermoplastic Elastomers (SEM) TPE + OnForce (SEM) OnForce (SEM) Thermoplastic Elastomers (SEM) Glasforms (SEM) Polymer Colorants (CAI) Sheet (DSS) Source: Outdoor Industry Association Target End Markets… Outdoor High Performance PolyOne Corporation Page 13 Sound & Vibration Management Fuel Handling Systems Interior & Exterior Trim Structural Braces & Brackets Interior Structural Components Lighting Air management Electronics & Cameras Fluid Handling Target End Markets… Automotive Underhood Components Roof Systems PolyOne Corporation Page 14 Target End Markets… Packaging PreservaPak™ OnColor™ Smart Batch™ VersaFlex™ TPE Cap Liner ColorMatrix™ Amosorb™ Oxygen Scavenger ColorMatrix™ Ultimate™ UV Light Barrier OnCap™ Laser Marking Additives PolyOne Corporation Page 15 Innovation Drives Earnings Growth *Specialty Platform revenue from products introduced in last five years $20 $53 2006 2015 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 34% 2006 2015 CAI & SEM Gross Margin 12% 43% 2006 2015 Target ≥ 35% Innovation Pipeline Potential PolyOne Corporation Page 16 2,883 2,414 2006 2015 Volume (lbs in millions) -16% $103 $192 2006 2015 Commercial, R&D and Marketing Spending ($M) +86% $303 $721 2006 2015 Adjusted Gross Profit ($M) +138% Ours is Not a Cost Cutting Story PolyOne Corporation Page 17 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 18 Customer First Through World-Class Service Strengthening relationships through: Providing LSS services to small/medium sized customers Providing training in Customer Centric Selling Skills with customers World’s Best Business Process Excellence Program in 2012* World’s Best Start-up program for Lean Six Sigma Deployment in 2009* 81% 93% 2006 2015 16.2% 9.7% 2006 2015 On-Time Delivery Working Capital % of Sales 52% of associates trained in LSS Five consecutive years – CFO Magazine Best Working Capital Management in the chemical industry Commitment to Operational Excellence PolyOne Corporation Page 19 60% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 1Q 2016 Pension Funding** As of March 31, 2016 Debt Maturities & Pension Funding Net Debt / Adjusted EBITDA*= 2.5x ** includes US-qualified pension plans only*TTM 3/31/2016 $550 $600 $200 $300 $400 $500 $600 $700 $800 2022 2023 Debt Maturities As of March 31, 2016 ($ millions) Coupon Rate: 3.750% 5.250% PolyOne Corporation Page 20 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 1.5 million shares in Q1 2016 Repurchased 17.3 million shares since early 2013 10.0 million shares are available for repurchase under the current authorization $0.24 PolyOne Corporation Page 21 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
Addressable market exceeds $40 billion Strong performance demonstrates that our strategy and execution are working Megatrends and emerging opportunities align with our strengths Innovation and services provide differentiation, incremental pricing power, and competitive advantage Strong and proven management team driving growth and performance PolyOne Corporation Page 22 Appendix PolyOne Corporation Page 23 $0.24 $0.31 $0.44 $0.46 $0.56 $0.00 $0.25 $0.50 $0.75 1Q'12 1Q'13 1Q'14 1Q'15 1Q'16 Adjusted EPS 1Q 2016 Financial Highlights Performance Products & Solutions operating margin grew 540 basis points year-over-year to 11.9% Distribution operating margin expanded 60 basis points to a record first quarter level of 6.5% First quarter adjusted EPS has grown on average 24% per year since 2012 $11 $20 $0 $5 $10 $15 $20 $25 1Q'15 1Q'16 PP&S Operating Profit $16 $18 $10 $12 $14 $16 $18 $20 1Q'15 1Q'16 POD Operating Profit Note: $ in millions, except per share data PolyOne Corporation Page 24 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 16.7% 17.0% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q'16 2020 Operating Income % of Sales At a Glance Color, Additives and Inks 2015 Revenues: $0.8 Billion Solutions Expanding Profits2015 Revenue by Industry Segment 14.7% Platinum Vision United States 48% Europe 33% Canada 2% Asia 12% Latin America 5% Appliances 2% Building & Construction 11% Consumer 8% Electrical & Electronics 1% Healthcare 6% Industrial 13% Packaging 31% Textiles 8% Transportation 9% Wire & Cable 11% PolyOne Corporation Page 25 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 14.7% 16.6% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q'16 2020 Operating Income % of Sales At a Glance Specialty Engineered Materials 2015 Revenues: $0.5 Billion Solutions 2015 Revenue by Industry Segment Expanding Profits Platinum Vision 12.1% United States 49% Europe 29% Canada 2% Asia 20% Appliances 3% Building & Construction 3% Consumer 20% Electrical & Electronics 16% Healthcare 11% Industrial 8% Packaging 5% Transportation 19% Wire & Cable 15% PolyOne Corporation Page 26 1.4% 5.6% 7.3% 3.0% 8-10% 0.4% 2012 2013 2014 2015 1Q'16 2020 Operating Income % of Sales At a Glance Designed Structures and Solutions Solutions2015 Revenues: $0.5 Billion Expanding Profits2015 Revenue by Industry Segment Platinum Vision Appliances, 3% Building & Construction 9% Consumer 5% Healthcare 7% Industrial 24% Packaging 19% Transportation 33% United States 97% Canada 3% PolyOne Corporation Page 27 Appliances 7% Building & Construction 31% Consumer 5% Electrical & Electronics 3% Healthcare 1% Industrial 13% Packaging 5% Transportation 19% Wire & Cable 16% 5.5% 6.9% 3.8% 3.6% 5.5% 4.3% 6.3% 7.2% 8.3% 12-14% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q'16 2020 Operating Income % of Sales At a Glance Performance Products and Solutions Solutions Expanding Profits 2015 Revenues: $0.7 Billion 11.9% Platinum Vision 2015 Revenue by Industry Segment 7.7% United States 79% Canada 14% Asia 2% Latin America 5% PolyOne Corporation Page 28 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% 6.4% 5.9% 6.6% 6.5-7.5% 6.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q'16 2020 Operating Income % of Sales 15% 54% 2006 1Q 2016 At a Glance Distribution Key Suppliers2015 Revenues: $1.0 Billion ROIC Expanding Profits 6.1% Platinum Vision Appliances 6% Building & Construction 4%Consumer 13% Electrical & Electronics 6% Healthcare 23% Industrial 16% Packaging 4% Transportation 24% Wire & Cable 4% http://www.polyone.com/Pages/VariationRoot.aspx http://www.polyone.com/Pages/VariationRoot.aspx PolyOne Corporation Page 29 2 lbs Plastic = 3 lbs aluminum or 8 lbs steel or 27 lbs glass 33% less material by weight than aluminum 75% less material by weight than steel 93% less material by weight than glass Requires 91% less energy to recycle a pound of plastic versus a pound of paper Source: SPI: Sustainability and the Plastics Industry Plastics: Key to Future Sustainable Development PolyOne Corporation Page 30 Application Examples PolyOne Corporation Page 31 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 Source: Outdoor Industry Association PolyOne Corporation Page 32 $1.5 billion attractive, growing market Additives improve performance and reduce cost through light-weighting, reduced waste, faster cycle times, and extended shelf life of finished product Aligned with megatrend of protecting the environment: Sustainability benefits include lower package weight and improved recyclability of package at end of use Market Opportunity Leading Global Supplier of Additives In Growing PET Market Shelf-life extension Greater product consistency Recyclability and reduced carbon footprint Color and Special Effects Weight reduction Enhanced product aesthetics High heat resistance PET Bottling Technology 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2009 2014 2019 Asia Pacific North America Latin America Western Europe Eastern Europe Middle East and Africa Global PET Packaging Growth 2009-2019 Source: Euromonitor retail off-trade consumption (PET bottles & jars, home care, personal care, food & non-alcoholic beverages) B ill io n un its 5% CAGR PolyOne Corporation Page 33 • Includes formulation and consultative services to assist manufacturers and brand owners in positively identifying their finished goods • Protects brand equity & consumer welfare • Reduces exposure to unwarranted recall expenses • Secures supply chain integrity – support for safe expansion into new geographies Authentication Technology PolyOne Corporation Page 34 Metal Replacement Solutions • Replaces metal in LED lighting • Extends LED durability and life span eliminating hot spots • Greater design flexibility with fewer parts • Weight reduction • Simplifies manufacturing and lowers total production cost PolyOne Corporation Page 35 • Color harmonization across 15 unique color-and-polymer combinations • Eliminated need for multiple pre- colored materials • Reduced Land Rover’s working capital Range Rover Evoque Interior PolyOne Corporation Page 36 • Reduced health and environmental impact • System cost reduction • Radiation-shielding performance • Parts consolidation • Design freedom CT Scanner PolyOne Corporation Page 37 High-Barrier Packaging Containers • Capability to extrude up to 13 layers • Strong oxygen and moisture vapor transmission protection • Can be made symmetrical or asymmetrical to meet customized needs of broad variety of applications • Barrier protection and superior sensory properties PolyOne Corporation Page 38 Aerospace Applications • Leading provider of specialty materials for the aerospace industry • Typical applications Mil-spec aircraft windows, canopies, windscreens, instrument panels, wingtip lenses Interior – gallery furnishings, tray tables, arm rests, trim strips, joint/edge coverings • Benefits: High impact strength Resistant to UV rays Flame and smoke compliance Easy to clean with aggressive cleaners; anti-microbial grades available Range of sizes, thicknesses, colors, etc. 1 Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with U.S.
POL IR Presentation (Goldman Sachs Basic Materials Conference - 2016) ��PolyOne Investor Presentation�Goldman Sachs Basic Materials Conference�May 2016�� Forward-Looking Statements Use of Non-GAAP Measures PolyOne Commodity to Specialty Transformation Confirmation of Our Strategy 26 Consecutive Quarters of EPS Growth PolyOne�At A Glance Mix Shift Highlights Specialty Transformation Color and Engineered Materials at the�Heart of Specialty Transformation Proof of Performance & 2020 Goals Slide Number 11 Slide Number 12 Slide Number 13 Slide Number 14 Innovation Drives Earnings Growth Ours is Not a Cost Cutting Story 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?
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Buyer acknowledges that Seller has furnished to Buyer Material Safety Data sheets, which include warnings together with safety and health information concerning the Product and/or the containers for such Product.
การรบัรองความปลอดภยั และสุขอนามยั ผูซื้7 อรบัทราบวา่ ผูข้ายไดส่้งมอบเอกสารขอ้มูลความปลอดภยั (Material Safety Data sheets) ใหแ้ก่ผูซื้7 อแลว้ ซึ(งรวมถึงขอ้ควรระวงัต่างๆ พรอ้มดว้ยขอ้มูลความปลอดภยัและสุขอนามยัเกี(ยวกบัสินคา้ และ/หรือบรรจุภณัฑข์องสินคา้ดงักล่าว ผูซ้ื7 อจะเผยแพรข่อ้มลูดงักลา่วเพื(อแจง้ ขอ้ควรระวงัเกี(ยวกบัอนัตรายต่างๆ ที(อาจเกดิขึ7 นแกบุ่คคลที( ผูซื้7 อพึงคาดหมายไดต้ามสมควรวา่อาจไดร้บัอนัตรายดงักล่าว รวมถงึ แต่ไม่จาํกดัเพียง ลกูจา้ง ตวัแทน ผูร้บัจา้ง และลูกคา้ของผูซื้7 อ ผูซ้ื7 อจะชดใชค้วามเสียหาย แกต้่าง และคุม้ครองผูข้ายใหป้ลอดพน้จากความรบัผิดทั7งปวงอนัเกิดจาก หรือเกี(ยวเนื(องกบัการที(ผูซื้7 อมิไดเ้ผยแพร่ขอ้มลูดงักล่าว รวมถึง แต่ไม่จาํกดัเพียง ความรบัผิดต่อการบาดเจ็บ การเจ็บป่วย การเสียชีวติ และความเสียหายต่อทรพัยสิ์น และค่าใชจ่้ายในการตรวจสอบ การฟ้องรอ้งดาํเนินคดี และค่าทนายความตามสมควร 11.
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S&P 500 -150% -50% 50% 150% 250% 350% 450% 550% POL S&P 500 All time high of $43.34 July 1st, 2014 PolyOne Corporation Page 9 2006 2014 YTD 2015 “Where we were” “Where we are” Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 14.9% 12 – 16% Global Specialty Engineered Materials 1.1% 12.1% 12 – 16% Designed Structures & Solutions -- 7.6% 8 – 10% Performance Products & Solutions 5.5% 8.1% 9 – 12% Distribution 2.6% 6.2% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 65% 65 – 75% 3) ROIC* 5.0% 10.6% 15% 4) Adjusted EPS Growth N/A 37% 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 PolyOne Corporation Page 10 32% Adjusted EPS CAGR from 2011 2015 EPS: $2.50 2011 EPS: $0.82 Continued Gross Margin Expansion Mergers & Acquisitions Spartech Accretion Incremental Share Buybacks Ongoing LSS Programs (50-100 bps/yr) Accelerated Innovation & Mix Improvement Several Levers to Drive Growth Mid Single Digit Revenue Growth PolyOne Corporation Page 11 Innovation Drives Earnings Growth *Percentage of Specialty Platform revenue from products introduced in last five years $20 $53 2006 2013 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 31% 2006 2013 Specialty Platform Gross Margin % 20% 43% 2006 2013 Specialty Vitality Index Target ≥ 35% Vitality Products + 700 to 1000 bps 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) TBD TBD $800 $450 $450 $1,700 PolyOne Corporation Page 13 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 14 60% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2014 Pension Funding** As of September 30, 2014 Debt Maturities & Pension Funding – 9/30/14 Net Debt / EBITDA* = 1.7x $48 $317 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Debt Maturities As of September 30, 2014 ($ millions) Coupon Rates: 7.500% 7.375% 5.250% ** includes US-qualified pension plans only *TTM 9/30/2014 PolyOne Corporation Page 15 Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return Expanding our sales, marketing, and technical capabilities Targets that expand our: • Specialty offerings • End market presence • Geographic footprint • Operating Margin Synergy opportunities Adjacent material solutions Repurchased 1.5 million shares in Q3 2014 Repurchased 9.7 million shares since early 2013 10.3 million shares are available for repurchase under the current authorization Organic Growth Acquisitions Share Repurchases Dividends Investing in operational and LSS initiatives (including synergy capture) Manufacturing alignment $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 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?
Strong past performance demonstrates that our strategy and execution are working Megatrends and emerging opportunities align with our strengths Innovation and services provide differentiation, incremental pricing power, and competitive advantage Strong and proven management team driving growth and performance Addressable market exceeds $40 billion 1 Schedule I Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with U.S.
��PolyOne Investor Presentation�Bank of America Merrill Lynch �2014 US Basic Materials Conference�Boston, MA�December 11, 2014�� 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 32% Adjusted EPS CAGR from 2011 Innovation Drives Earnings Growth A Rich Pipeline of Opportunity Megatrends Aligned with Key End Markets Debt Maturities & Pension Funding – 9/30/14 Free Cash Flow and Strong Balance Sheet �Fund Investment / Shareholder Return PolyOne Core Values Why Invest In PolyOne?
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S&P 500 All time high of $43.34 July 1st, 2014 PolyOne Corporation Page 8 2006 2014 YTD 2015 “Where we were” “Where we are” Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 15.2% 12 – 16% Global Specialty Engineered Materials 1.1% 11.8% 12 – 16% Designed Structures & Solutions -- 7.1% 8 – 10% Performance Products & Solutions 5.5% 8.0% 9 – 12% Distribution 2.6% 6.0% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 66% 65 – 75% 3) ROIC* 5.0% 9.9% 15% 4) Adjusted EPS Growth N/A 40% 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 (Est. in 2012) PolyOne Corporation Page 9 Bridge to $2.50 Adjusted EPS by 2015 2015 EPS: $2.50 2013 EPS: $1.31 Continued Gross Margin Expansion Mergers & Acquisitions Spartech Accretion Incremental Share Buybacks Ongoing LSS Programs (50-100 bps/yr) Accelerated Innovation & Mix Improvement Several Levers to Drive Growth Mid Single Digit Revenue CAGR PolyOne Corporation Page 10 Innovation Drives Earnings Growth *Percentage of Specialty Platform revenue from products introduced in last five years $20 $53 2006 2013 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14.3% 30.7% 2006 2013 Specialty Platform Gross Margin % 19.5% 43.0% 2006 2013 Specialty Vitality Index Target ≥ 35% PolyOne Corporation Page 11 Prototype Frame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 4 11 5 10 6 9 3 4 2 15 9 1 10 4 Breakthrough Platform Derivative A Rich Pipeline of Opportunity* Number of Projects 25 14 19 17 18 93 Addressable Market ($ millions) TBD TBD $800 $450 $450 $1,700 *Pipeline as of May 29, 2014 as presented during our Innovation Day PolyOne Corporation Page 12 Healthcare Consumer Packaging and Additive Technology Transportation Unique and Innovative Solutions 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 PolyOne Corporation Page 13 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 14 60% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2014 Pension Funding** As of June 30, 2014 Debt Maturities & Pension Funding – 6/30/14 Net Debt / EBITDA* = 1.8x $48 $317 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Debt Maturities As of June 30, 2014 ($ millions) Coupon Rates: 7.500% 7.375% 5.250% ** includes US-qualified pension plans only *TTM 6/30/2014 PolyOne Corporation Page 15 Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return $0.16 $0.20 $0.24 $0.32 $0.10 $0.20 $0.30 $0.40 2011 2012 2013 2014 Annual Dividend Expanding our sales, marketing, and technical capabilities Targets that expand our: • Specialty offerings • End market presence • Geographic footprint • Operating Margin Synergy opportunities Adjacent material solutions Repurchased 1.8 million shares in Q2 2014 Repurchased 8.2 million shares since early 2013 11.8 million shares are available for repurchase under the current authorization Organic Growth Acquisitions Share Repurchases Dividends Investing in operational and LSS initiatives (including synergy capture) Manufacturing alignment 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?
Strong past performance demonstrates that our strategy and execution are working Megatrends and emerging opportunities align with our strengths Innovation and services provide differentiation, incremental pricing power, and competitive advantage Strong and proven management team driving growth and performance Addressable market exceeds $40 billion 1 Schedule I Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with U.S.
��PolyOne Investor Presentation�Jefferies 2014 Global Industrials Conference�New York, NY�August 12, 2014�� 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 Bridge to $2.50 Adjusted EPS by 2015 Innovation Drives Earnings Growth A Rich Pipeline of Opportunity* Unique and Innovative Solutions Megatrends Aligned with Key End Markets Debt Maturities & Pension Funding – 6/30/14 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%2520GS%2520w%2520non%2520GAAP%25205_21_14.pdf
S&P 500 All time high of $39.55 May 13th, 2014 Page 8 2006 Q1 2014 2015 “Where we were” “Where we are” Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 13.8% 12 – 16% Global Specialty Engineered Materials 1.1% 11.6% 12 – 16% Designed Structures & Solutions -- 6.5% 8 – 10% Performance Products & Solutions 5.5% 7.7% 9 – 12% Distribution 2.6% 6.1% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 64% 65 – 75% 3) ROIC* 5.0% 9.4% 15% 4) Adjusted EPS Growth N/A 42% 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 9 Bridge to $2.50 Adjusted EPS by 2015 2015 EPS: $2.50 2013 EPS: $1.31 Continued Gross Margin Expansion Mergers & Acquisitions Spartech Accretion Incremental share buybacks Ongoing LSS Programs (50-100 bps/yr) Accelerated Innovation & Mix Improvement Several Levers to Drive Growth Mid single digit revenue CAGR Page 10 Innovation Drives Earnings Growth *Percentage of Specialty Platform revenue from products introduced in last five years Page 11 $20 $53 2006 2013 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14.3% 30.7% 2006 2013 Specialty Platform Gross Margin % 19.5% 43.0% 2006 2013 Healthcare Consumer Packaging and Additive Technology Transportation Page 12 Unique and Innovative Solutions 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 60% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2014 Pension Funding** As of March 31, 2014 Debt Maturities & Pension Funding – 3/31/14 Net Debt / EBITDA* = 1.9x $48 $317 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Debt Maturities As of March 31, 2014 ($ millions) Coupon Rates: 7.500% 7.375% 5.250% ** includes US-qualified pension plans only *TTM 3/31/2014 Page 13 Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return $0.16 $0.20 $0.24 $0.32 $0.10 $0.20 $0.30 $0.40 2011 2012 2013 2014 Annual Dividend Expanding our sales, marketing, and technical capabilities Targets that expand our: • Specialty offerings • End market presence • Geographic footprint • Operating Margin Synergy opportunities Adjacent material solutions Repurchased 1.4 million shares in Q1 2014 Repurchased 6.4 million shares since April 2013 13.6 million shares are available for repurchase under the current authorization Organic Growth Acquisitions Share Repurchases Dividends Investing in operational and LSS initiatives (including synergy capture) Manufacturing alignment Page 14 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
Strong past performance demonstrates that our strategy and execution are working Megatrends and emerging opportunities align with our strengths Innovation and services provide differentiation, incremental pricing power, and competitive advantage Strong and proven management team driving growth and performance Addressable market exceeds $40 billion Page 15 Schedule I Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with U.S.
PolyOne Investor Presentation�Goldman Sachs �Basic Materials Conference �May 21, 2014 � 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 Bridge to $2.50 Adjusted EPS by 2015 Innovation Drives Earnings Growth Unique and Innovative Solutions Debt Maturities & Pension Funding – 3/31/14 Free Cash Flow and Strong Balance Sheet �Fund Investment / Shareholder Return Why Invest In PolyOne?
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General Manager, Specialty Film & Sheet, General Electric Plastics, June 2004 to September 2006.
SELECTED FINANCIAL DATA Refer to Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in Part II of this Annual Report on Form 10-K and the notes to our accompanying consolidated financial statements for additional information regarding the financial data presented below, including matters that might cause this data not to be indicative of our future financial condition, results of operations or cash flows.
Off-Balance Sheet Arrangements We have no off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K other than the SunBelt debt guarantee described previously in the Guarantee of Indebtedness of Others section.