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PolyOne Corporation Page 1 PolyOne Investor Presentation Jefferies 2015 Industrials Conference August 2015 PolyOne Corporation Page 2 Forward-Looking Statements 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.
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?
Platform operating income mix percentage 2005* 2006* 2007* 2008* 2009* 2010* 2011 2012 2013 2014 2015 YTD Global Color, Additives and Inks $ 4.3 $ 8.9 $ 25.7 $ 28.1 $ 25.2 $ 37.7 $ 50.2 $ 75.3 $ 104.0 $ 124.9 $ 73.4 Global Specialty Engineered Materials 0.4 3.9 4.9 17.6 20.6 49.7 45.9 47.0 57.2 72.4 43.2 Designed Structures and Solutions - - - - - - - - 33.4 45.1 7.7 Specialty Platform $ 4.7 $ 12.8 $ 30.6 $ 45.7 $ 45.8 $ 87.4 $ 96.1 $ 122.3 $ 194.6 $ 242.4 $ 124.3 Performance Products and Solutions 75.7 64.2 65.8 31.3 33.1 54.0 27.7 38.8 56.0 63.1 27.8 Distribution 19.5 19.2 22.1 28.1 24.8 42.0 56.0 66.0 63.3 68.2 34.8 Joint ventures 91.9 102.9 34.8 28.6 25.5 18.9 5.0 - - - - Corporate and eliminations (51.5) 34.5 (73.3) (425.1) 7.9 (27.7) 18.2 (89.6) (82.4) (218.6) (36.5) Operating income (loss) GAAP $ 140.3 $ 233.6 $ 80.0 $ (291.4) $ 137.1 $ 174.6 $ 203.0 $ 137.5 $ 231.5 $ 155.1 $ 150.4 Less: Corporate operating expense 51.5 (34.5) 73.3 425.1 (7.9) 27.7 (18.2) 89.6 82.4 218.6 36.5 Operating income excluding Corporate $ 191.8 $ 199.1 $ 153.3 $ 133.7 $ 129.2 $ 202.3 $ 184.8 $ 227.1 $ 313.9 $ 373.7 $ 186.9 Specialty platform operating mix percentage 2% 6% 20% 34% 35% 43% 52% 54% 62% 65% 67% * Historical results have not been restated for the Resin business divestiture or the related resegmentation. 2 Adjusted EPS 2006Y* 2007Y* 2008Y* 2009Y* 2010Y 2011Y 2012Y 2013Y 2014Y Net income attributable to PolyOne common shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 Joint venture equity earnings, after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) - - - Special items, after tax(1) (21.2) 41.4 310.0 (31.0) 15.8 (30.5) 35.7 30.4 101.0 Tax adjustments(2) (30.0) (30.7) 147.2 (44.9) (88.3) (42.3) 0.5 2.2 (10.5) Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8 96.5 93.5 Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 Adjusted EPS 2010 Q2 2011 Q2 2012 Q2 2013 Q2 2014 Q2 2015 Q2 Net income attributable to PolyOne common shareholders $ 44.7 $ 23.1 $ 18.4 $ 38.6 $ 30.9 $ 66.8 Joint venture equity earnings, after tax (4.5) - - - - - Special items, after tax(1) (9.0) 0.9 8.0 (2.2) 22.6 8.0 Tax adjustments(2) (13.1) 0.4 0.9 0.2 (5.2) (23.9) Adjusted net income $ 18.1 $ 24.4 $ 27.3 $ 36.6 $ 48.3 $ 50.9 Diluted shares 96.3 95.5 90.7 99.1 94.3 89.8 Adjusted EPS $ 0.19 $ 0.26 $ 0.30 $ 0.37 $ 0.51 $ 0.57 * Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principal or discontinued operations. (1) Special items are a non-GAAP financial measure.
https://www.avient.com/sites/default/files/2020-12/resound-om-technical-bulletin_0.pdf
TECHNICAL BULLETIN UV RESISTANCE • UV testing: QUV-A Test, 0.68 @ 45C • Comparable results to traditional TPEs reSound OM 5510-45N reSound OM 5510-60N Bio-derived Content (%) 40% 50% Hardness, Shore A 45 60 Delta E after 150 hrs. 0.22 0.23 Delta E after 300 hrs. 1.68 0.56 AGING – BONDING STRENGTH ONTO ABS reSound OM 5520-55N Room Temperature 70C 1 day 1 week 2 weeks 6 months 1 week 2 weeks 3 weeks Bio-derived Content (%) 49% 49% 49% 49% 49% 49% 49% Hardness, Shore A 54 54 55 54 55 56 OM Substrate ABS ABS ABS ABS ABS ABS ABS OM Avg.
Peel, PLI 12 19 23 20 19 reSound OM 5510 for PP reSound OM 5510-60N Room Temperature 70C 1 day 1 week 2 weeks 6 months 1 week 2 weeks 3 weeks Bio-derived Content (%) 50% 50% 50% 50% 50% 50% 50% Hardness, Shore A 60 60 60 60 60 60 60 Specific Gravity 0.89 0.89 0.89 0.89 0.89 0.89 0.90 50% Modulus, PSI 247 241 244 251 234 244 240 100% Modulus, PSI 343 333 338 339 321 331 326 Tensile Strength, PSI 625 621 647 610 633 662 642 Elongation, % 306 314 309 313 312 315 315 Tear Strength, PLI 109 108 113 113 111 117 115 reSound OM 5520-55N Room Temperature 70C 1 day 1 week 2 weeks 6 months 1 week 2 weeks 3 weeks Bio-derived Content (%) 49% 49% 49% 49% 49% 49% 49% Hardness, Shore A 54 54 55 55 54 55 56 Specific Gravity 0.95 0.95 0.96 0.96 0.95 0.96 0.96 50% Modulus, PSI 258 256 256 265 266 271 257 100% Modulus, PSI 353 355 357 362 373 379 367 Tensile strength, PSI 637 615 637 669 651 674 642 Elongation, % 319 315 319 333 313 319 315 Tear Strength, PLI 146 136 133 142 137 138 141 reSound OM 5510-45N Room Temperature 70C 1 day 1 week 2 weeks 6 months 1 week 2 weeks 3 weeks Bio-derived Content (%) 40% 40% 40% 40% 40% 40% 40% Hardness, Shore A 45 46 47 46 46 45 45 Specific Gravity 0.88 0.89 0.89 0.89 0.89 0.89 0.90 50% Modulus, PSI 153 158 154 162 137 136 133 100% Modulus, PSI 251 259 259 261 226 222 218 Tensile Strength, PSI 438 481 451 495 417 470 486 Elongation, % 215 240 211 243 204 227 238 Tear Strength, PLI 84 81 87 82 83 85 84 AGING – PROPERTY RETENTION • Tested at room temperature and 70° C for comparison • Hardness, tensile strength elongation and modulus showed great retention Overmolding onto PP Overmolding onto ABS RHEOLOGY Suitable for injection molding and overmolding 1.0 10 100 1000 10000 100000 10.0 100.0 1000.0 reSound OM 5510-30N reSound OM 5510-45N reSound OM 5510-60N reSound OM 5510-70N Shear Rate, 1/s Ca pi lla ry V is co si ty , P a* s 1.0 10 100 1000 10000 100000 10.0 100.0 1000.0 reSound OM 5520-55N Shear Rate, 1/s Ca pi lla ry V is co si ty , P a* s Capillary viscosity at 200°C Capillary viscosity at 200°C reSound OM 5510 for PP reSound OM 5520 for ABS www.avient.com Copyright © 2020, Avient Corporation.
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Handelsregister B des Amtsgerichts Mannheim Nummer der Firma: Seite 1 von 4 HRB 521568 Nummer der Eintragung a) Firma b) Sitz, Niederlassung, inländische Geschäftsanschrift, empfangsberechtigte Person, Zweigniederlassungen c) Gegenstand des Unternehmens Grund- oder Stammkapital a) Allgemeine Vertretungsregelung b) Vorstand, Leitungsorgan, geschäftsführende Direktoren, persönlich haftende Gesellschafter, Geschäftsführer, Vertretungsberechtigte und besondere Vertretungsbefugnis Prokura a) Rechtsform, Beginn, Satzung oder Gesellschaftsvertrag b) Sonstige Rechtsverhältnisse a) Tag der Eintragung b) Bemerkungen 1 2 3 4 5 6 7 1 a) PolyOne Th.
Änderungsbeschluss: Sonderband Blatt 101 ff. 2 b) Bestellt als Geschäftsführer: Ximena, Philippe, Lyon (Frankreich), *18.11.1960 einzelvertretungsberechtigt mit der Befugnis, im Namen der Gesellschaft mit sich im eigenen Namen oder als Vertreter eines Dritten Rechtsgeschäfte abzuschließen.
Nicht mehr Geschäftsführer: Setzen, Marc, Baden-Baden, *27.05.1969 a) 05.02.2007 Rinke Abruf vom 08.11.2021 19:52 Handelsregister B des Amtsgerichts Mannheim Nummer der Firma: Seite 2 von 4 HRB 521568 Nummer der Eintragung a) Firma b) Sitz, Niederlassung, inländische Geschäftsanschrift, empfangsberechtigte Person, Zweigniederlassungen c) Gegenstand des Unternehmens Grund- oder Stammkapital a) Allgemeine Vertretungsregelung b) Vorstand, Leitungsorgan, geschäftsführende Direktoren, persönlich haftende Gesellschafter, Geschäftsführer, Vertretungsberechtigte und besondere Vertretungsbefugnis Prokura a) Rechtsform, Beginn, Satzung oder Gesellschaftsvertrag b) Sonstige Rechtsverhältnisse a) Tag der Eintragung b) Bemerkungen 1 2 3 4 5 6 7 3 b) Geschäftsanschrift: Adolf-Dambach-Str. 2, 76571 Gaggenau b) Bestellt als Geschäftsführer: Tomaselli, Frank, La Wantzenau/Frankreich, *28.12.1963 einzelvertretungsberechtigt mit der Befugnis, im Namen der Gesellschaft mit sich im eigenen Namen oder als Vertreter eines Dritten Rechtsgeschäfte abzuschließen.
https://www.avient.com/sites/default/files/2022-08/Environmental Stress Cracking Resistance _ESCR_ Design Guide %281%29.pdf
Figure 2 shows the proper way to transition different wall thicknesses.
Usually, it is 2° for parallel walls.
Instead, use gussets to structurally support the boss.2 Figure 10 illustrates these stated boss design guidelines.
https://www.avient.com/sites/default/files/2023-01/45324-Certificate-13JAN2023.pdf
ECert - 2023-01-13T114926.191.pdf Page 1 of 2 Validity of this certificate is based on the successful completion of the periodic surveillance audits of the management system defined by the above scope and is contingent upon prompt,written notification to ABS Quality Evaluations, Inc. of significant changes to the management system or components thereof.
WITH ADDITIONAL FACILITIES LISTED ON ATTACHED ANNEX) Certificate Of Conformance has been assessed by ABS Quality Evaluations, Inc. and found to be in conformance with the requirements set forth by: Page 2 of 2 ABS Quality Evaluations Avient Corporation ISO 13485:2016 Certificate Of Conformance ANNEX At Below Facilities: Validity of this certificate may be confirmed at www.abs-qe.com/cert_validation.
https://www.avient.com/sites/default/files/2025-06/IATF16949 -2025.5.21~2028.5.20 EN -EM.pdf
1400 Ravello Drive, Katy, TX, 77449-5164, USA - TEL: +1 281-396-1000. www.dnv.com Page 1 of 2 MANAGEMENT SYSTEM CERTIFICATE Certificate no.: 11229-2006-CHN-IATF IATF Certificate No: 0573810 Valid: 21 May 2025 – 20 May 2028 This is to certify that the management system of PolyOne - Suzhou, China EM Sector, 77 Shenggang Street, Suzhou Industrial Park, Suzhou, Jiangsu, China 215024 (USI: CF4943) and, if applicable, the remote supporting locations as mentioned in the Appendix accompanying this Certificate has been found to conform to the Quality Management System standard: IATF 16949:2016 This certificate is valid for the following scope: DESIGN AND MANUFACTURE OF PLASTIC COMPOUNDING MATERIAL EXCLUSION: NONE http://www.dnv.com Certificate no.: 11229-2006-CHN-IATF IATF Certificate No: 0573810 Place and date: Katy, TX, 22 May 2025 Lack of fulfilment of conditions as set out in the Certification Agreement may render this Certificate invalid.
ACCREDITED UNIT: DNV Business Assurance USA Inc., 1400 Ravello Drive, Katy, TX, 77449-5164, USA - TEL: +1 281-396-1000. www.dnv.com Page 2 of 2 Appendix to Certificate PolyOne - Suzhou, China Remote Support Locations included in the certification are as follows: Site Name Site Address RSL Activities Certification Body Avient China Co., Ltd.
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ECert.QECertificate Page 1 of 2 Validity of this certificate is based on the successful completion of the periodic surveillance audits of the management system defined by the above scope and is contingent upon prompt,written notification to ABS Quality Evaluations, Inc. of significant changes to the management system or components thereof.
IATF 16949:2016 The Quality Management System is applicable to: Certificate No: 38972 Effective Date: 04 September 2018 Expiration Date: 03 September 2021 Issue Date: 31 December 2018 IATF No: 0328156 Alex Weisselberg, President DESIGN AND MANUFACTURE OF CUSTOM PVC PLASTISOL AND PVC SLUSH MOLD POWDER (WITH ADDITIONAL FACILITIES LISTED ON ATTACHED ANNEX) Certificate Of Conformance has been assessed by ABS Quality Evaluations, Inc. and found to be in conformance with the requirements set forth by: Page 2 of 2 ABS Quality Evaluations PolyOne Corporation IATF 16949:2016 Certificate Of Conformance ANNEX At Below Facilities: Validity of this certificate may be confirmed at www.abs-qe.com/cert_validation.
https://www.avient.com/sites/default/files/2025-01/ISO 16949 Tossiat%2C France.pdf
Any translations of this document shall be used for reference only.) 1/2 Certificate of Approval AWARDED TO PolyOne France Tossiat Route de la vavrette, 01250, Tossiat - France IATF USI: LWZS4P Bureau Veritas Certification certify that the Quality Management System of the above organisation has been audited and found to be in accordance with the requirements of IATF 16949 - FIRST EDITION and the applicable customer specific requirements SCOPE Design and manufacturing PERMITTED EXCLUSION(S) None PRODUCT(S) DELIVERED colour with additive concentrates for thermoplastic resins and speciality compounds obtained by mixing and extrusion https://e-cer.bureauveritas.com/68LJQE0ZV0CO6I7YW0YSXOUMV9WWROQPHPI2AOHRRLFFVRAVTFVZGXKWIE3TOWLTTKEWCPQB9UNAPXHH6T0HXOMUEDVYPRPJLEXBBTKQYPBRICYOKY143TECQ5UMHGA3JX Date Of Certification: 11 December 2024 Date Of Expiration: 10 December 2027 IATF Certificate N°: 0558656 Bureau Veritas Certification Certificate No: FR094003 - IATF Revision: 1 For Bureau Veritas Certification Holding, Tour ALTO, 4 place des saisons, 92400 COURBEVOIE – France (The official document is in English.
Any translations of this document shall be used for reference only.) 2/2 Appendix to the Certificate of Approval AWARDED TO PolyOne France Tossiat Route de la vavrette, 01250, Tossiat - France IATF USI: LWZS4P REMOTE SUPPORT FUNCTION(S) NAME ADDRESS SCOPE AVIENT LUXEMBOURG 19, Route de bastogne, 9638, Pommerloch - Luxembourg IATF USI: GAZS9A Purchasing, Logistics, Supplier Management PolyOne Europe Logistics 7 Rue bleriot, 4460, Grace-Hollogne - Belgium IATF USI: P4WA4Y Warehousing Polyone Poland Ul. wschdnia 6, 99-300, Kutno - Poland IATF USI: C4W5ZL Logistics https://e-cer.bureauveritas.com/68LJQE0ZV0CO6I7YW0YSXOUMV9WWROQPHPI2AOHRRLFFVRAVTFVZGXKWIE3TOWLTTKEWCPQB9UNAPXHH6T0HXOMUEDVYPRPJLEXBBTKQYPBRICYOKY143TECQ5UMHGA3JX 2024-12-13T10:07:11+0100 Authenticity and Integrity
https://www.avient.com/sites/default/files/2022-08/IATF 16949 North Baltimore.doc.pdf
Page 1 of 2 ABS Quality Evaluations IATF 16949:2016 Certificate Of Conformance ANNEX Certificate No: IATF No: 38972 0422162 Avient Corporation Engineered Materials Division At Below Facilities: Facility: Corporate 33587 Walker Road Avon Lake, OH 44012 U.S.A.
Page 2 of 2
https://www.avient.com/sites/default/files/2021-04/iatf-16949-58976-lockport-17nov2020.pdf
ECert - 2020-11-17T151438.723.pdf Page 1 of 2 Validity of this certificate is based on the successful completion of the periodic surveillance audits of the management system defined by the above scope and is contingent upon prompt,written notification to ABS Quality Evaluations, Inc. of significant changes to the management system or components thereof.
IATF 16949:2016 The Quality Management System is applicable to: Certificate No: 58976 Effective Date: 08 February 2019 Expiration Date: 09 August 2022 Revision Date: 17 November 2020 IATF No: 0349837 Dominic Townsend, President DESIGN AND MANUFACTURE OF THERMOPLASTIC COMPOUNDS (WITH ADDITIONAL FACILITIES LISTED ON ATTACHED ANNEX) Certificate Of Conformance has been assessed by ABS Quality Evaluations, Inc. and found to be in conformance with the requirements set forth by: Page 2 of 2 ABS Quality Evaluations Avient Corporation IATF 16949:2016 Certificate Of Conformance ANNEX At Below Facilities: Validity of this certificate may be confirmed at www.abs-qe.com/cert_validation.