https://www.avient.com/sites/default/files/2024-12/2024 Avient Executive Bios_George Inglis.pdf
Inglis has taken on numerous special assignments in his tenure, including supporting Avient’s speciality transformation through M&A activity as well as establishing Avient’s Global Business Services (GBS).
https://www.avient.com/sites/default/files/2020-03/PolyOne_Website-12.19.pdf
In addition, adjusted operating income and adjusted EPS, which exclude the impact of special items, are components of various PolyOne annual and long-term employee incentive plans.
Richardson Executive Vice President and Chief Financial Officer PolyOne Corporation 4 PolyOne Corporation 5 Landmark portfolio transformation: > 85% of Adjusted EBITDA from specialty solutions World-class innovation, technology and service are differentiators Sustainability initiatives and alignment with megatrends drive above market growth in key end markets and applications: Capital management is a strength - proven track record of expanding ROIC while increasing invested capital Transaction expected to add $0.85 to pro forma adjusted EPS T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y Integrity V I S I O N PolyOne Corporation 6 To be the world’s premier provider of specialized polymer materials, services and solutions C O R E V A L U E S P E R S O N A L V A L U E S Honesty Respect Operational Excellence Commercial Excellence Specialization Globalization Collaboration ExcellenceInnovation To be the world’s premier provider of sustainable, specialty polymer materials and solutions.
S A F E T Y F I R S T PolyOne Corporation 7 Injuries per 100 Workers Spartech Acquisition 1.3 1.1 1.1 0.85 0.65 0.57 0.54 0.97 0.84 0.74 0.74 0.69 0.51 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 G R E A T P L A C E T O W O R K PolyOne Corporation 8 * Pro Forma for sale of DSS Operating Income % of Sales 2006 Q3 YTD 2019 Color, Additives & Inks 1.7% 15.5% Specialty Engineered Materials 1.1% 11.8% Distribution 2.6% 6.3% 2009 2010 2011 2012 2013 2014 2015 2016*2017* 2018 $2.43 P R O O F O F P E R F O R M A N C E C O N S E C U T I V E Y E A R S PolyOne Corporation 9 10 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.06 $2.21 A D J U S T E D E P S E X P A N S I O N 2018 2019E $1.65 $1.51 Pro Forma for sale of PP&S T R A N S F O R M A T I O N H E A D L I N E S PolyOne Corporation 10 C O M M O D I T Y T O S P E C I A L T Y T R A N S F O R M A T I O N PolyOne Corporation 11 • Volume driven, commodity production • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures • Shift to value-based selling & an innovative culture • New leadership team appointed • Implementation of four pillar strategy • Investment in commercial training and innovation • Faster growing, high margin focus • Accelerated growth with world class vitality index • Significant commercial resource additions • Expanded margins with specialty focus • Acquired strategic, bolt-on companies to expand technology offerings and improve geographic breadth Volume Value Transformation The Future 2006 - 2013 2013 – 20192000-2005 2006 - 2013 • Landmark portfolio transformation creates specialty growth company • Sustainability / mega- trends drive above market growth 2020 and Beyond F I T W I T H F O U R P I L L A R S T R A T E G Y PolyOne Corporation 12 Specialization • Innovation-led organization with heavy emphasis on R&D • World-class expertise in color formulation • Strong presence in specialty end markets including Consumer, Packaging and Healthcare Globalization • Diverse geographic portfolio with an established presence in every major region • Expands PolyOne’s ability to serve customers in key growth areas including India, China and Southeast Asia Operational Excellence • Extensive manufacturing footprint with 46 facilities • Organizational focus on optimizing supply chain to better serve customers • Color design expertise Commercial Excellence • Value-focused salesforce with vast experience marketing and commercializing specialty technologies • Diverse customer portfolio with established OEM’s People Experienced and talented associates with a winning mentality L E V E R A G I N G G L O B A L M E G A T R E N D S 13 Facilitate alternative energy solutions Light- weighting Reduce packaging materials Improve recyclability Reduce spread of infection T R A N S P O R T A T I O N P A C K A G I N G H E A L T H C A R EC O N S U M E R PolyOne Corporation E N D M A R K E T T R A N S F O R M A T I O N PolyOne Corporation 14 Building & Construction 5% 2006 2019E PF* 4% 12% 10% 18% 8% 20% 2006 2019E PF* Healthcare Consumer Packaging 50% 22% High Growth End Markets Percentage of Total Revenue 38% * 2019E Pro Forma for PP&S Divestiture and Clariant Color & Additive Masterbatch business E N D M A R K E T T R A N S F O R M A T I O N PolyOne Corporation 15 Packaging 8% Building & Construction 38% Wire & Cable 11% Industrial 10% Electrical & Electronic 7% 2006 2019E PF* Healthcare 4% Transportation 12% Consumer 18% Building & Construction 5% Wire & Cable 6% Industrial 12% Electrical & Electronic 5% Appliance 3% Textiles 6% Transportation 13% Healthcare 12% Packaging 20% Consumer 10% * 2019E Pro Forma for PP&S Divestiture and Clariant Color & Additive Masterbatch business C O M P L E M E N T A R Y G E O G R A P H I C P R E S E N C E PolyOne Corporation 16 United States 38% Europe 33% Asia 19% Canada 4% Latin America 6% United States 22% Europe 40% Asia & Middle East 31% Canada 1% Latin America 6% Color & Engineered Materials Clariant Color & Additive Masterbatch Business Net Sales by Geographic Region United States 31% Europe 36% Asia & Middle East 24% Canada 3% Latin America 6% Pro Forma Color & Engineered Materials 531 710 1,042 130 164 208 504 663 880 2014 2018 2019E PF* R&D / Technical Marketing Sales PolyOne Corporation 17 + 34% + 26% + 32% E X P A N S I O N O F COMMERCIAL RESOURCES D R I V I N G G R O W T H $2.9 $2.9 $3.5 2015 2016 2017 2018 2019E PF Total + 9% Organic + 5% Revenue in Billions Total + 10% Organic + 7%+ 47% + 27% + 33% $4.0 $3.2 2019E PF* * 2019E Pro Forma for PP&S Divestiture and Clariant Color & Additive Masterbatch business P R I O R A C Q U I S I T I O N S : P R O O F O F P E R F O R M A N C E PolyOne Corporation 18 Commercial Resources Operating Income ($ in millions) Operating Margins 243 340 At Acquisition 2018 $36 $96 At Acquisition 2018 11% 20% At Acquisition 2018 Established Acquisitions (> 7 years) + 40% + 165% + 900 bps U N I F I E D F O C U S O N S U S T A I N A B I L I T Y PolyOne Corporation 19 2006 - 2013 2013 – 2019 PEOPLE PRODUCTS PLANET PERFORMANCE PolyOne Clariant Color & Additive Masterbatch Business • Building mini-recycling plants to facilitate customer projects on design for recycling - CycleWorks • Uses packaging additives & colorants to improve recyclability and enhance automated sorting • Manufactures oxygen scavengers to extend shelf-life of perishable items and reduce material requirements • Combines UV-blocking additive colorants & other barriers to prevent spoilage and waste • Offers spin-dyeing solutions that use significantly less water than traditional methods, allowing for sustainable coloration of textiles • Produces infrared absorbing additives that reduce energy requirements for bottle manufacturing ($ in millions) PolyOne (Continuing Operations) Clariant Color & Additive Masterbatch Business Synergies New PolyOne 2019E Total Sales $2,860 $1,150 $4,010 2019E Adjusted EBITDA $310 $130 $60 $500 % Margin 10.8% 11.3% 12.5% 2019E CapEx $60 $85 % Sales 2.1% 2.1% 2019E Free Cash Flow $170 $250 2019E Adjusted EPS $1.65 $2.22 2019E PF Adjusted EPS $1.65 $2.50 P O L Y O N E + C L A R I A N T C O L O R & A D D I T I V E M A S T E R B A T C H B U S I N E S S PolyOne Corporation 20 (1) Excludes step-up of depreciation & amortization related to purchase accounting of transaction (1) $0.85/share O V E R 8 5 % O F A D J U S T E D E B I T D A F R O M S P E C I A L T Y PolyOne Corporation 21 46% 66% 0% 20% 40% 60% 80% 100% 2005 2010 2015 2019E PF % o f A d ju s te d E B IT D A * JV's Performance Products & Solutions Distribution Specialty 7% 87% * Adjusted EBITDA is EBITDA excluding corporate costs and special items ** 2019E Pro Forma for PP&S Divestiture and Clariant Color & Additive Masterbatch business acquisition with synergies Specialty EBITDA $14M $117M $273M $500M ** PolyOne Corporation 22 T R A N S A C T I O N O V E R V I E W • Expected mid-2020, subject to regulatory approvals and customary closing conditions Closing Conditions / Timing • Committed financing in place • Permanent financing to be combination of available cash on-hand, new debt and equity component to limit leverage • Equity issuance of $400 to $500MM • Target net leverage below 3.5x, 3.1x synergized, with intention to de-lever below 3.0x within 2 years PolyOne Corporation 23 • $1.45 B net purchase price • Represents 11.1x adjusted EBITDA (excluding synergies), 7.6x adjusted EBITDA (including synergies) • Pre-tax synergies of $60MM expected to be fully realized by the end of 2023 • Synergies realized from sourcing, operational, technology / commercial, and general administrative Transaction Value Synergies Financing Estimated Synergy Breakdown $60MM • Expect EBITDA synergies of $60MM – Proven integration expertise with a decade of acquisition experience – Administrative synergies reflect reduction of duplicative internal and third-party costs • Run rate synergies of $20MM by the end of Year 1 with $60MM achieved by the end of Year 3 • Significant additional opportunity for geographical expansion – Clariant Color & Additive Masterbatch business has complementary regional presence in key growth areas including India & Southeast Asia • Opportunity to accelerate growth with a combined portfolio of innovative solutions aligned with sustainability megatrends Sourcing 40% Operational 30% Administrative 30% PolyOne Corporation 24 S I G N I F I C A N T S Y N E R G Y O P P O R T U N I T I E S C A P I T A L S T R U C T U R E / L E V E R A G E PolyOne Corporation 25 At Close Year 1 Year 2 3.2x 3.5x 3.1x 2.6x Pro Forma with Synergies 2019E PF Two year leverage goal (1) Pro Forma Capitalization is for illustrative purposes only; amounts may vary depending on various market and other factors.
https://www.avient.com/sites/default/files/2020-11/gls-tpes-soft-touch-selection-guide.pdf
TPEs are compatible with most municipal recycle streams and special grades can be formulated with renewable content.
GENERAL PURPOSE GLS TPES FOR PACKAGING SOFT TOUCH GRIPS BONDING TO POLAR SUBSTRATES GENERAL PURPOSE GLS TPES FOR PACKAGING SOFT TOUCH GRIPS BONDING TO NON POLAR SUBSTRATES Dynaflex™ G2711 Dynaflex™ G2780 Dynaflex™ G6713 Dynaflex™ G7960 Versalloy™ XL9045 Versaflex™ CL40 Aesthetics Grippy, 43A & translucent Low tack, 84A & translucent Extra soft, 13A & translucent Rubbery, 60A & opaque Matte, 45A & natural Grippy, 40A & water clear Special Characteristics Grippy medical grade PP & PE OM Extra soft General purpose High flow & fast setup Water clear Regulatory FDA, EU & USP VI FDA FDA & EU FDA FDA FDA & EU Overmolding Polypropylene Polypropylene & Polyethylene Polypropylene Polypropylene Polypropylene Polypropylene Versaflex™ CL 2250 Versaflex™ OM 3060 Versaflex™ CE 3120-65 Versaflex™ CE 3620 Versollan™ RU 2205 Aesthetics Grippy, 50A & clear Grippy, 59A & clear Silky feel, 65A & matte finish Silky feel, 65A & matte finish Grippy, 65A & matte finish Special Characteristics Clear overmold Clear overmold Abrasion resistance & high strength Low compression set & high flow Abrasion resistance & high strength Regulatory FDA & USP VI FDA & USP VI UL 94 FDA & ISO 10993-10 — Overmolding Polycarbonate Polycarbonate & ABS Polycarbonate, ABS, Copolyester & Nylon 12 Polycarbonate, ABS, Copolyester Polycarbonate, ABS, Copolyester & Nylon 12 1.844.4AVIENT www.avient.com Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2020-11/gls-indoor-grips-translation-application-bulletin.pdf
Whether we’re preparing a special meal for the family or relaxing in front of the TV, the time we spend at home is time we cherish.
COLOR: TPEs can be customized with bright colors and special effects such as glimmers, sparkles and pearlescents, as well as shine levels such as eye-catching high gloss, which conveys a high-tech, high-fashion aesthetic.
Consumers can choose from multiple styles, many featuring soft-grip handles with special textures and bold colors to meet their individual preferences.
https://www.avient.com/industries/consumer/consumer-discretionary/outdoor-recreation/outdoor-adventure-gear
OnColor™ FX™ Special Effect Colorants
See how our specially formulated colorants can help differentiate your brand
https://www.avient.com/news/dyneema-and-point-blank-deliver-1-million-alpha-elite-armor-systems-protect-us-law-enforcement
The Alpha Elite® Series was created when Point Blank engineers began searching for a ballistic material that would meet the rigorous demands of U.S. special operations forces deployed in the world’s most dangerous regions.
Avient Corporation provides specialized and sustainable materials solutions that transform customer challenges into opportunities, bringing new products to life for a better world.
https://www.avient.com/news/avient-supports-hager-group-incorporate-recycled-ocean-bound-plastic-new-waterproof-outdoor-socket-and-switch
POMMERLOCH, Luxembourg – March 28, 2024 – Avient Corporation, a premier provider of specialized and sustainable materials solutions and services, is pleased to announce a successful collaboration with its long-standing and valued customer, Hager Group.
Avient Corporation provides specialized and sustainable materials solutions that transform customer challenges into opportunities, bringing new products to life for a better world.
https://www.avient.com/products/polymer-colorants
Our collaborative process gives you the flexibility and authority you need to achieve the colors and special effects that will dazzle your customers and spur sales.
OnColor™ FX™ Special Effect Colorants
https://www.avient.com/industries/healthcare/catheter-materials-medical-tubing/medical-tubing
Delivering specialized thermoplastic elastomer solutions for demanding healthcare applications
Discover our portfolio of color and additive solutions specially formulated with bio-polymers to increase the sustainability of healthcare products.
https://www.avient.com/industries/healthcare/remote-monitoring-wearables/home-care-monitors
Color and special effect masterbatches pre-tested to ISO, US Pharmacopeia, European Pharmacopeia, and ICH Q3D protocols for increased visual appeal and patient adherence to regular monitoring
Delivering specialized thermoplastic elastomer solutions for demanding healthcare applications