https://www.avient.com/products/advanced-composites/continuous-fiber-composite-tape-laminates-and-barstock/polystrand-continuous-fiber-tapes-laminates
PP, PE, PETG, aPET and PA6
PE
PE
https://www.avient.com/sites/default/files/2021-02/avient-ir-presentation-goldman-sachs-and-morgan-stanley.pdf
Q 4 AN D FU LL Y EA R
2020 PE RF O RM AN CE
$0.30
$0.52
Q4 2020 ORGANIC PERFORMANCE
Sales
$922
$997
+8%
Operating
Income
EPS
$58
$80
+38%
+73%
• Record 4th quarter sales, adjusted
operating income and adjusted EPS
performance
• All segments delivered year-over-year
sales and operating income growth, led
by consumer and healthcare end markets
• Clariant Masterbatch integration synergy
capture ahead of schedule: $5 million
realized in 2020
($ in millions except EPS)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Q4 2020 SEGMENT PERFORMANCE
10
Sales Operating Income
$100 $100 $100
$922
$100 $100 $100
$997
Distribution CAI SEM Total
2019 2020
$178
$272
$490
$191
$305
$526
SEM Distribution CAI
+8%
+7%
+7%
+12%
$5 $5 $5
$58
$5 $5 $5
$80
Avient CAI SEM Total
$17 $19
$40
$18
$30
$58
Distribution SEM CAI
+38%
+45%
+58%
+6%
(3) (3)
(1) (2)
(1) Total company sales include intercompany sales eliminations
(2) Total company reflects adjusted operating income and includes corporate costs
(3) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
2020 HIGHLIGHTS
11
• Completed transformational Clariant Masterbatch acquisition and created new
brand name Avient
• Increased pro forma adjusted EPS 11% from $1.74 to $1.93 as an essential supplier
during the pandemic and due to growth in demand for consumer applications
• Specialty Engineered Materials delivered record operating income on gains from
composites
• Achieved record free cash flow, increased dividend for 10th year in a row and
delevered from 3.5x to 2.7x net debt to pro forma adjusted EBITDA
• Culture is everything: Certified as a Great Place to Work®
$133
$150
23%8%
21%
2006 2020PF
Avient Portfolio Transformation
22%
59%
CLARIANT MASTERBATCH:
TRANSFORMATIONAL ACQUISITION
12
Clariant MB EBITDA Growth
Purchase Price Multiple
10.8
9.6
6.5
2019PF 2020PF 2020PF w/ Full
Synergies
• Acquisition of Clariant Masterbatch
significantly expands presence in
healthcare, packaging and consumer end
markets
• Strength of portfolio – 13% EBITDA growth
as an essential supplier in COVID response
and recovery
• Acquisition completed on July 1, 2020 for
$1.4 billion.
https://www.avient.com/products/engineered-polymer-formulations/high-temperature-polymer-formulations/colorant-chromatics-crosslinked-formulations
PES/PSU/PPSU Colorants: Colorant Chromatics™
https://www.avient.com/products/polymer-colorants/fluoropolymer-color-concentrates/colorant-chromatics-fep-colorants
PES/ PSU/ PPSU Colorants: Colorant Chromatics™
https://www.avient.com/products/polymer-colorants/high-temperature-color-concentrates/colorant-chromatics-peek-colorants
PES/PSU/PPSU Colorants: Colorant Chromatics™
https://www.avient.com/news/oncolor-wc-wire-and-cable-colorants-feature-cost-effective-performance
Compatible with ethylene-vinyl acetate (EVA) and polyethylene (PE), a portfolio of 12 standard colors allows for lower minimum order quantities and shorter lead times.
https://www.avient.com/sites/default/files/resources/IR_Deck_11.4.19.pdf
Cable jacket/sheath– Made of
PE or PVC
9
Fiber-Line Product
PolyOne Materials
F I B E R O P T I C A L G R O W T H D R I V E R S
PolyOne Corporation 20
5G Networks
Enable lower latency, greater
flexibility & efficiency
Installation of these networks are
in the very early stages
Installation will start in urban
hubs and will continue to expand
into suburban and rural areas
By 2025, only 14% of the world
will have 5G connections
Growth is expected over multi-
year period
5G technology will be a leading growth driver in fiber optic cable for several years
10x
Speed Increase
&
8x
More Antennae Required
5G vs. 4G
PolyOne Corporation 21
Safety Technology Geography Service FinancialPeople
Low EH&S
risk profile
New and
complementary
technologies
Leverage our
global footprint
Strong
customer
relationships
Foundational
operating
margins of
8-10% with
ability to double
Motivated team
with a specialty
culture
I N V E S T - T O - G R O W M & A S T R A T E G Y
PolyOne Corporation 22
Capture
sourcing
synergies
Cross-sell
& blend
8-10%
operating
margins
I N V E S T - T O - G R O W M & A P L A Y B O O K
Protect
Retain
employees
Implement LSS to
drive efficiency
improvements
Innovate with
combined
portfolio
Safety
First!
https://www.avient.com/sites/default/files/2019-12/Fermium_IR_Deck_12.16.19_for_Website.pdf
Cable jacket/sheath– Made of
PE
9
Fiber-Line Product
PolyOne Materials
F I B E R O P T I C A L G R O W T H D R I V E R S
PolyOne Corporation 20
5G Networks
Enable lower latency, greater
flexibility & efficiency
Installation of these networks are
in the very early stages
Installation will start in urban
hubs and will continue to expand
into suburban and rural areas
By 2025, only 14% of the world
will have 5G connections
Growth is expected over multi-
year period
5G technology will be a leading growth driver in fiber optic cable for several years
10x
Speed Increase
&
8x
More Antennae Required
5G vs. 4G
PolyOne Corporation 21
Safety Technology Geography Service FinancialPeople
Low EH&S
risk profile
New and
complementary
technologies
Leverage our
global footprint
Strong
customer
relationships
Foundational
operating
margins of
8-10% with
ability to double
Motivated team
with a specialty
culture
I N V E S T - T O - G R O W M & A S T R A T E G Y
PolyOne Corporation 22
Capture
sourcing
synergies
Cross-sell
& blend
8-10%
operating
margins
I N V E S T - T O - G R O W M & A P L A Y B O O K
Protect
Retain
employees
Implement LSS to
drive efficiency
improvements
Innovate with
combined
portfolio
Safety
First!
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520–%2520Goldman%2520Sachs%2520Conference%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
Building &
10%
Electrical &
11%
9%
Distribution
28%
PP&S
52%
69%
13%
7% Asia
2014 Revenues: $3.8 Billion
End Markets
2014 Revenues: $3.8 Billion
PolyOne
At A Glance
$13
$31
$46 $46
$92 $96
$122
$195
$242
2006 2007 2008 2009 2010 2011 2012 2013 2014
Specialty Operating Income ($M)
PolyOne Corporation Page 6
Old
PolyOne
*Operating Income excludes corporate charges and special items
2%
34% 43%
62%
65%
69%
0%
20%
40%
60%
80%
100%
2005 2008 2010 2013 2014 Q1 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 $60M
Mix Shift Highlights Specialty Transformation
Transformation
2020
Platinum
Vision
Platinum
Vision
PolyOne Corporation Page 7
Confirmation of Our Strategy
The World’s Premier Provider of Specialized
Polymer Materials, Services and Solutions
Specialization Globalization
Operational
Excellence
Commercial
Excellence
PolyOne Corporation Page 8
-100%
0%
200%
300%
400%
500%
600%
Strategy and Execution Drive Results
$0.12
$0.27
$0.21
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
'06 '07 '08 '09 '10 '11 '12 '13 '14
‘06-‘14 Adjusted EPS CAGR = 40%
Adjusted EPS Share Price vs.
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
66%
Building &
10%Electrical &
Textiles
$1.96
Distribution
29%
PP&S
CAI
23%
SEM
15%DSS
PolyOne Corporation Page 8
Old
PolyOne
*Operating Income excludes corporate charges and special items
43%
65%
0%
40%
80%
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
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%
12.2%
16.7% 17.0%
COLOR, ADDITIVES
AND INKS
1.1% 1.3%
3.4%
5.1%
9.6%
8.0%
8.6%
9.3%
12.1%
16.6%
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
OnForce
TPE Vibration Dampening
(SEM/GLS)
TPE & Film
(SEM + DSS)
Polymer Colorants
(CAI)
Thermatech
Thermoplastic Elastomers
TPE + OnForce
OnForce
Thermoplastic Elastomers
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
$53
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
34%
CAI & SEM
Gross Margin
43%
Target ≥ 35%
Innovation Pipeline Potential
PolyOne Corporation Page 16
2,883
2,414
Volume
(lbs in millions)
-16%
$103
$192
Commercial, R&D
and Marketing
Spending ($M)
+86%
$303
$721
Adjusted
Gross Profit ($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%
16.2%
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
30%
40%
50%
70%
80%
90%
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?