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A reconciliation of each non-GAAP financial measure with the most directly comparable GAAP financial measure is attached to this presentation which is posted on our website at www.polyone.com. 4 POLYONE CORPORATION About PolyOne Reach 7,000 associates | 77 facilities | $3.4 B 2015 revenue Global Presence 10,000 global customers | Americas, Europe, Africa, Asia | Global sales, technical and manufacturing footprint Solutions 35,000+ polymer solutions | 12 innovation centers | Support for design through manufacturing 5 POLYONE CORPORATION What We Do Value Formulation Expertise Inputs Base resins Additives Modifiers Pigments Expertise in Polymer Materials, Services and Solutions OEMs Brand Owners Processers Assemblers Driving customer value with specialty products & services Service InVisiOSM Color Services IQ Design Labs LSS Customer First POLYONE CORPORATION 6 CAI 23% SEM 15% DSS 13% POD 29% PPS 20% 2015 Revenue: $3.4 Billion At a Glance United States 66% Europe 13% Canada 7% Asia 7% Latin America 7% $0.12 $0.27 $0.21 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 Revenue: $3.4 Billion 2015 Operating Income: $322 Million CAI 38% SEM 23% DSS 4% POD 19% PPS 16% Adjusted Earnings Per Share 7 POLYONE CORPORATION 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 Transformation 2020 Platinum Vision Platinum Vision Mix Shift Highlights Specialty Transformation POLYONE CORPORATION 8 -$0.10 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 2009 2010 2011 2012 2013 2014 2015 2016 Adjusted Earnings Per Share $0.56 3Q -2% 0% 2% 4% 6% 8% 10% 12% 2009 2010 2011 2012 2013 2014 2015 2016 Adjusted Consolidated Operating Margin 2.8% 5.2% 5.6% 6.7% 8.3% 6.9% 9.5% 9.9% 3Q 28 Consecutive Quarters of EPS Growth 9 POLYONE CORPORATION 2006 2016 YTD 2020 “Where we were” “Where we are” Platinum Vision 1) Operating Income % of Sales Specialty: Color, Additives & Inks 1.7% 17.0% 20%+ Specialty Engineered Materials 1.1% 15.2% 20%+ Designed Structures & Solutions N/A 0.6% (TTM) 8 – 10% Performance Products & Solutions 5.5% 11.6% 12 – 14% Distribution 2.6% 6.6% 6.5 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 60% 80%+ 3) ROIC* 5.0% 11.6% 15% 4) Adjusted EPS Growth N/A 11.5% 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 10 2,883 2,414 2006 2015 Volume (lbs in millions) -16% $103 $192 2006 2015 Commercial, R&D and Marketing Spending ($M) +86% $88 $322 2006 2015 Adjusted Operating Profit ($M) +266% Ours is Not a Cost Cutting Story 11 POLYONE CORPORATION 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 12 POLYONE CORPORATION Globalization Specialization Commercial Excellence Operational Excellence Growth in urbanization Changing demographics Climate and resource challenges Increase of individual power Evolution and expansion of healthcare Strategic Growth Opportunities Four Pillar Strategy Global Megatrends Attractive Revenue & Margin Growth Opportunities 13 POLYONE CORPORATION Primary Industries Served 2015 Revenue: $3.4 Billion Electrical & Electronic 5% Building & Construction 12% Appliance 4% Industrial 14% Wire & Cable 9% Healthcare 11% Consumer 10% Packaging 13% Transportation 20% Focus End Markets 14 POLYONE CORPORATION Therma-Tech™ & Sheet GEON™ Vinyl Polymer Colorants Therma-Tech™ TPE’s & Film TPE + OnForce™ Gravi-Tech™ Page 14 Film Target End Markets… Healthcare 15 POLYONE CORPORATION 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 16 POLYONE CORPORATION PreservaPak™ OnColor™ Smart Batch™ VersaFlex™ TPE Cap Liner ColorMatrix™ Amosorb™ Oxygen Scavenger ColorMatrix™ Ultimate™ UV Light Barrier OnCap™ Laser Marking Additives Target End Markets… Packaging 17 POLYONE CORPORATION Source: Outdoor Industry Association TPE Vibration Dampening (SEM/GLS) TPE + OnForce (SEM) OnForce (SEM) Advanced Composites (SEM) TPE Vibration Dampening (SEM/GLS) Target End Markets… Outdoor High Performance Thermoplastic Elastomers (SEM) Advanced Composites (SEM) Polymer Colorants (CAI) Sheet (DSS) TPE & Film (SEM + DSS) Advanced Composites (SEM) Polymer Colorants (CAI) Thermatech (SEM) Thermoplastic Elastomers (SEM) TPE + OnForce (SEM) OnForce (SEM) 18 POLYONE CORPORATION 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 Targets that expand our: • Specialty offerings • End market presence • Geographic breadth Synergy opportunities Adjacent material solutions Repurchased 318,000 shares in Q3 2016 Repurchased 17.6 million shares since early 2013 9.7 million shares are available for repurchase under the current authorization Increased annual dividend by 12.5% to $0.54 per share, representing the sixth consecutive year of dividend growth 19 POLYONE CORPORATION Returning Cash to Shareholders $0.16 $0.20 $0.24 $0.32 $0.40 $0.48 $0.54 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 2011 2012 2013 2014 2015 2016 2017 Annual Dividend Since 2011, we have returned nearly $800 million to shareholders $130 million returned through dividends $650 million returned through share repurchases $650M $0 $150 $300 $450 $600 $750 2011 2012 2013 2014 2015 Q3'16 Cumulative Share Repurchases (in millions) POLYONE CORPORATION 20 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
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A reconciliation of each non-GAAP financial measure with the most directly comparable GAAP financial measure is attached to this presentation which is posted on our website at www.polyone.com. 4 POLYONE CORPORATION About PolyOne Reach 7,000 associates | 77 facilities | $3.4 B 2015 revenue Global Presence 10,000 global customers | Americas, Europe, Africa, Asia | Global sales, technical and manufacturing footprint Solutions 35,000+ polymer solutions | 12 innovation centers | Support for design through manufacturing 5 POLYONE CORPORATION What We Do Value Formulation Expertise Inputs Base resins Additives Modifiers Pigments Expertise in Polymer Materials, Services and Solutions OEMs Brand Owners Processers Assemblers Driving customer value with specialty products & services Service InVisiOSM Color Services IQ Design Labs LSS Customer First POLYONE CORPORATION 6 CAI 23% SEM 15% DSS 13% POD 29% PPS 20% 2015 Revenue: $3.4 Billion At a Glance United States 66% Europe 13% Canada 7% Asia 7% Latin America 7% $0.12 $0.27 $0.21 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 Revenue: $3.4 Billion 2015 Operating Income: $322 Million CAI 38% SEM 23% DSS 4% POD 19% PPS 16% Adjusted Earnings Per Share 7 POLYONE CORPORATION 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 Transformation 2020 Platinum Vision Platinum Vision Mix Shift Highlights Specialty Transformation POLYONE CORPORATION 8 -$0.10 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 2009 2010 2011 2012 2013 2014 2015 2016 Adjusted Earnings Per Share $0.56 3Q -2% 0% 2% 4% 6% 8% 10% 12% 2009 2010 2011 2012 2013 2014 2015 2016 Adjusted Consolidated Operating Margin 2.8% 5.2% 5.6% 6.7% 8.3% 6.9% 9.5% 9.9% 3Q 28 Consecutive Quarters of EPS Growth 9 POLYONE CORPORATION 2006 2016 YTD 2020 “Where we were” “Where we are” Platinum Vision 1) Operating Income % of Sales Specialty: Color, Additives & Inks 1.7% 17.0% 20%+ Specialty Engineered Materials 1.1% 15.2% 20%+ Designed Structures & Solutions N/A 0.6% (TTM) 8 – 10% Performance Products & Solutions 5.5% 11.6% 12 – 14% Distribution 2.6% 6.6% 6.5 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 60% 80%+ 3) ROIC* 5.0% 11.6% 15% 4) Adjusted EPS Growth N/A 11.5% 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 10 2,883 2,414 2006 2015 Volume (lbs in millions) -16% $103 $192 2006 2015 Commercial, R&D and Marketing Spending ($M) +86% $88 $322 2006 2015 Adjusted Operating Profit ($M) +266% Ours is Not a Cost Cutting Story 11 POLYONE CORPORATION 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 12 POLYONE CORPORATION Globalization Specialization Commercial Excellence Operational Excellence Growth in urbanization Changing demographics Climate and resource challenges Increase of individual power Evolution and expansion of healthcare Strategic Growth Opportunities Four Pillar Strategy Global Megatrends Attractive Revenue & Margin Growth Opportunities 13 POLYONE CORPORATION Primary Industries Served 2015 Revenue: $3.4 Billion Electrical & Electronic 5% Building & Construction 12% Appliance 4% Industrial 14% Wire & Cable 9% Healthcare 11% Consumer 10% Packaging 13% Transportation 20% Focus End Markets 14 POLYONE CORPORATION Therma-Tech™ & Sheet GEON™ Vinyl Polymer Colorants Therma-Tech™ TPE’s & Film TPE + OnForce™ Gravi-Tech™ Page 14 Film Target End Markets… Healthcare 15 POLYONE CORPORATION 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 16 POLYONE CORPORATION PreservaPak™ OnColor™ Smart Batch™ VersaFlex™ TPE Cap Liner ColorMatrix™ Amosorb™ Oxygen Scavenger ColorMatrix™ Ultimate™ UV Light Barrier OnCap™ Laser Marking Additives Target End Markets… Packaging 17 POLYONE CORPORATION Source: Outdoor Industry Association TPE Vibration Dampening (SEM/GLS) TPE + OnForce (SEM) OnForce (SEM) Advanced Composites (SEM) TPE Vibration Dampening (SEM/GLS) Target End Markets… Outdoor High Performance Thermoplastic Elastomers (SEM) Advanced Composites (SEM) Polymer Colorants (CAI) Sheet (DSS) TPE & Film (SEM + DSS) Advanced Composites (SEM) Polymer Colorants (CAI) Thermatech (SEM) Thermoplastic Elastomers (SEM) TPE + OnForce (SEM) OnForce (SEM) 18 POLYONE CORPORATION 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 Targets that expand our: • Specialty offerings • End market presence • Geographic breadth Synergy opportunities Adjacent material solutions Repurchased 318,000 shares in Q3 2016 Repurchased 17.6 million shares since early 2013 9.7 million shares are available for repurchase under the current authorization Increased annual dividend by 12.5% to $0.54 per share, representing the sixth consecutive year of dividend growth 19 POLYONE CORPORATION Returning Cash to Shareholders $0.16 $0.20 $0.24 $0.32 $0.40 $0.48 $0.54 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 2011 2012 2013 2014 2015 2016 2017 Annual Dividend Since 2011, we have returned nearly $800 million to shareholders $130 million returned through dividends $650 million returned through share repurchases $650M $0 $150 $300 $450 $600 $750 2011 2012 2013 2014 2015 Q3'16 Cumulative Share Repurchases (in millions) POLYONE CORPORATION 20 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
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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 technology 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 customers Retain employees Implement LSS to drive efficiency improvements Innovate with combined portfolio Safety First!
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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 technology 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 customers Retain employees Implement LSS to drive efficiency improvements Innovate with combined portfolio Safety First!
https://www.avient.com/sites/default/files/resources/Overmolding_of_Thermoplastic_Elastomers_Engineered_solutions_for_consumer_product_differentiation.pdf
Rigid substrates include polypropylene(PP), polyethylene (PE), amorphous polar plastics such as polycarbonate (PC), polymethylmethacrylate (PMMA), polystyrene (PS), high impact polystyrene(HIPS), polyphenylene oxide (PPO), glycol modified polyethylene terephthalate (PETG), Acrylonitrile Butadiene Styrene (ABS), semicrystalline polar plastics such as polyester (PET, PBT) and Polyamide (Nylon 6, Nylon 66).
https://www.avient.com/sites/default/files/2021-05/renol-ul94-compliant-masterbatches-brochure.pdf
RENOL™ UL94 COMPLIANT MASTERBATCHES HOW TO USE THE TABLES UL HB GENERIC RESIN TYPE FLAME RATING MINIMUM THICKNESS (MM) MAXIMUM LET-DOWN RATIO Acetal Copolymer (POM) HB 1.50 1:20 Acrylonitrile Butadiene Styrene (ABS) HB 1.50 1:10 Ethylene Propylene Thermoplastic Rubber (EPTR) HB 1.50 1:20 High Impact Polystyrene (HIPS) HB 1.50 1:10 Liquid Crystal Polymer (LCP) HB 0.83 1:10 Polyamide (PA) HB 3.20 1:33 Polyamide (PA66 and PA 4/6) HB 0.81 1:20 Polyamide 6 (PA6) HB 0.75 1:25 Polyamide 66 (PA66) HB 0.40 1:40 Polybutylene Terephthalate (PBT) HB 0.81 1:20 Polybutylene Terephthalate/Polycarbonate (PBT/PC) HB 1.50 1:10 Polycarbonate (PC) HB 1.50 1:15 Polycarbonate/Acrylonitrile Butadiene Styrene (PC/ABS) HB 1.50 1:20 Polycarbonate/Polyethylene Terephthalate (PC/PET) HB 1.50 1:20 Polyethylene (PE) HB 1.50 1:50 Polyethylene Terephthalate (PET) HB 0.80 1:16.7 Polyketone HB 1.50 1:20 Polymethyl Methacrylate (PMMA) HB 3.00 1:25 Polypropylene (PP) HB 1.50 1:15 Polystyrene (PS) HB 0.83 1:15 Polyurethane (PUR) HB 1.50 1:25 Polyvinylchloride (PVC) HB 1.50 1:20 Styrene Acrylonitrile (SAN) HB 1.50 1:20 Thermoplastic Elastomer (TPE) HB 0.75 1:25 UL94 V-0, V-1, V-2 ASCEND GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polyamide 66 (PA66) 21X1(a)(f2), 21SPC1(a)(f2), 21SPF1(a)(f2), 21SPG1(a)(f2), 21SPM1(a)(f2), 20NSP1(a)(f2) 0.75 V-2 1:40 22HSP(e) 0.75 V-2 1:40 64C-R 3.0 V-2 1:50 ECO366(e) 0.4 V-0 1:40 ECO366H(e) 0.2 V-0 1:25 FR350J 0.4 V-0 1:25 20NSP(a)(f2), 21SPF(a)(f2), 21SPM(a)(f2), 21SPC(a)(f2) 0.4 V-2 1:40 20NSP(a)(h)(f2), 21SPF(a)(h)(f2), 21SPM(a)(h)(f2), 21SPC(a)(h) (f2) 1.5 V-2 1:20 Polyamide 66/6 (PA66/6) ECO315(e), ECO315J(e) 0.4 V-0 1:40 M344 3.0 V-0 1:25 909 0.75 V-0 1:25 UL94 V-0, V-1, V-2 BASF GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polyamide 6 (PA6) 8202(t1), 8202 Blend (t1) 0.71 V-2 1:25 8202C(t1), 8202C BLEND (t1) 1.50 V-2 1:25 8202CHS(t1) (t3), 8202C HS Blend 1.50 V-2 1:25 8202HS(t1) 1.50 V-2 1:25 B3S 0.80 V-2 1:25 1.50 V-2 1:25 B3S Q661 1.50 V-2 1:25 B3S R03 1.50 V-2 1:25 8232G HSFR(t9), B3U10G5 (t9) 1.50 V-0 1:25 Polyamide 6/66 (PA6/66) C3U (m) 0.40 V-0 1:25 KR4205(m), C3U (m), C3U (t)(m) 0.40 V-0 1:25 KR4205, C3U 0.40 V-0 1:25 Polyamide 66 (PA66) 1000(b), 1310-(b), Ultramid A3K Q603(+) 1.50 V-2 1:10 A3K (o) Q790(g)(f2) 0.41 V-2 1:20 A3K(f2), A3K Q601(f2) 0.41 V-2 1:20 A3SK 0.41 V-2 1:25 A5 3.00 V-2 1:33 A3W(f1), A3W FC (f1) 0.75 V-2 1:10 A3K R01 (t)(g)(f2) 0.40 V-2 1:20 Polybutylene Terephthalate (PBT) B4406 G2 (o) Q798 1.50 V-0 1:20 B4406 G2(a), B4406 G2 (o) Q717(a) 1.50 V-0 1:20 B4406 G3 (o) Q798 1.50 V-0 1:20 B4406 G3(a), B4406 G3 (o) Q717(a) 1.50 V-0 1:20 B4406 G4 (o) Q798 1.50 V-0 1:20 B4406 G4(a2), B4406 G4 (o) Q717(a2) 1.50 V-0 1:20 B4406 G6 (o) Q798 3.00 V-0 1:12.5 B4406 G6(%) 1.50 V-0 1:20 B4406 G6(a1), B4406 G6 (o) Q717(a1), B4406 G6 (o) Q717 High Speed(a1) 1.50 V-0 1:20 B4406(a), B4406 (o) Q717(a) 1.50 V-0 1:20 B4406@ 1.50 V-0 1:20 B4450 G5, B4450 G5 (t) 0.40 V-2 1:50 Polyurethane (PUR) 11 85 A(a) FHF 000 (f2) 0.75 V-0 1:33 UL94 V-0, V-1, V-2 CELANESE GENERIC RESIN TYPE MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Liquid Crystal Polymer (LCP) A130(+), MT1310 1.50 V-0 1:40 Polyamide 66 (PA66) A3 GF 25 V0XI, A G5 FR C4 0.40 V-0 1:25 Polybutylene Terephthalate (PBT) 2012-2 1.50 V-0 1:20 2016(b) 1.50 V-0 1:20 3112-2 1.50 V-0 1:20 3116(b) 1.50 V-0 1:20 3216(b) 1.50 V-0 1:20 3310-2(f2) 1.50 V-0 1:20 3311-3(f2) 1.50 V-0 1:20 3316(b) 1.50 V-0 1:20 3316(b), 3316HF 1.50 V-0 1:20 COVESTRO GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polycarbonate (PC) 2407 + (z)(f1) 0.75-2.60 V-2 1:10 2807 + MAS183 0.75 V-2 1:25 6455 + (z) 3.00 V-0 1:25 1.50 V-2 1:25 6485 + (z)(f1) 1.50 V-0 1:25 Polycarbonate/ Acrylonitrile Butadiene Styrene (PC/ABS) FR110 + 1.50 V-0 1:33 FR3005 HF + (z), FR3005 HF + BBS314 1.50 V-0 1:12.5 FR3010 + (z) 3.00 V-0 1:25 1.50 V-0 1:25 FR3010 HF + 3.00 V-0 1:25 FR3030 + 3.00 V-0 1:25 UL94 V-0, V-1, V-2 DSM GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polyamide 46 (PA46) TE250F6(h1)(j) 0.50 V-0 1:25 Polyamide 6 (PA6) F223-D(f1), F223-D /A(f1) 0.75 V-2 1:25 K222-KGV5(f1) 0.75 V-2 1:16.7 1.50 V-2 1:16.7 K-FKGS6/B(f1)(y) 0.80 V-0 1:25 Polyamide 66 (PA66) SG-KGS6/HV 0.75 V-0 1:25 Thermoplastic Elastomer (TPE) PL460-S 1.60 V-0 1:25 Polyamide 4T (PA4T) T11 (h) 0.40 V-0 1:20 DOMO GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polyamide (PA) J 60X1 V30 0.40 V-0 1:25 Polyamide 6 (PA6) PSB 286 0.80 V-2 1:25 3.00 V-2 1:25 Polyamide 66 (PA66) A 205F(r4) 0.38 V-2 1:25 A 225F 0.75 V-2 1:25 A 50H1 (r3)(f2) 0.40 V-0 1:25 A 30G1 0.40 V-0 1:25 DUPONT UL94 V-0, V-1, V-2 GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polyamide (PA) 132F(+)(f1), 135F(+)(f1) 0.75 V-2 1:20 HTNFR42G30NH 0.40 V-0 1:25 Polyamide 6/12 (PA6/12) 151, 151L 1.50 V-2 1:25 Polyamide 66 (PA66) 101(r9)(f1), 101F(r9)(f1), 101L(r9)(f1), E101(r9)(f1), E101L(r9)(f1) 0.75 V-2 1:20 103FHS(+), 103HSL(+), RN5077E(+), E103HSL(+) 0.75 V-2 1:20 A428 0.75 V-0 1:20 FE3757(+) 0.75 V-2 1:25 FR15(+) 0.75 V-0 1:20 FR50(+)(f1) 0.35 V-0 1:20 FR7025V0F(+) 0.50 V-0 1:33 Polyamide 66/6 (PA66/6) FR72G25V0 0.80 V-0 1:25 Polyamide 66/6T (PA66/6T) FR95G25V0NH 0.40 V-0 1:25 Polyamide 6T/66 (PA6T/66) HTNFR52G15AL 0.75 V-0 1:33 HTNFR52G30BL(r3) 0.75 V-0 1:33 HTNFR52G30L(+), FE15502(+), HTNFR52G30AL(+) 0.75 V-0 1:33 HTNFR52G30NH(r6) 0.40 V-0 1:25 0.75 V-0 1:10 HTNFR52G35BL 0.75 V-0 1:25 HTNFR52G35L(+), HTNFR52G35AL 0.75 V-0 1:33 Polyamide 6T/ MPMDT HTNFR51G35L(+) 0.81 V-0 1:33 Polybutylene Terephthalate (PBT) LW9030FR 1.50 V-0 1:25 S650FR 1.50 V-0 1:25 SK642FR 1.50 V-0 1:25 SK652FR1 1.50 V-0 1:16.5 T841FR (r4) 1.50 V-0 1:25 Polyethylene Terephthalate (PET) FR530(l)(+)(f1), FR530L(l)(+)(f1) 0.75 V-0 1:25 Thermoplastic Elastomer (TPE) HTR8068 1.60 V-0 1:25 UL94 V-0, V-1, V-2 EXXONMOBIL GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Ethylene Propylene Thermoplastic Rubber (EPTR) 251-80W232(f7) 1.50 V-2 1:20 251-92W232 1.50 V-0 1:20 251-70W232 1.50 V-0 1:10 1.00 V-2 1:10 LANXESS GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polyamide 6 (PA6) B30S+(f1) 1.50 V-2 1:25 B31SK+ 1.50 V-2 1:25 Polybutylene Terephthalate (PBT) B4235+ 1.50 V-0 1:10 TP364-302+, BF4232+(f1) 0.75 V-0 1:25 UL94 V-0, V-1, V-2 SABIC GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polybutylene Terephthalate (PBT) 310(w) 1.50 V-0 1:20 310SE0(w) 1.50 V-0 1:20 310SE0(w),310SE0R(w) 1.50 V-0 1:20 420SE0(f1)(w)(GG)(rr1) 1.50 V-0 1:20 420SE0(f1)(w)(GG)(rr2) 1.50 V-0 1:20 457(w) 1.50 V-0 1:20 457(w), 451(w) 1.50 V-0 1:20 553(a)(f1)(w) 1.50 V-0 1:20 553(a)(f1)(w), 553E(a)(f1)(w), 553U(a)(f1)(w) 1.50 V-0 1:20 553(w)(f1), 553M(w)(f1) 1.50 V-0 1:20 DR48(w) 1.50 V-0 1:20 DR48,DR48M 1.50 V-0 1:20 V4760(a2) 0.40 V-0 1:20 EXVX1259, ENH4550 0.40 V-0 1:20 771 0.75 V-0 1:25 Polybutylene Terephthalate/ Polycarbonate (PBT/PC) 357(f1)(w)(IC), 357M(f1)(w)(IC), 357U(f1)(w)(IC) 1.50 V-0 1:20 357(f1)(w)(IC), 357U(f1)(w)(IC) 1.50 V-0 1:20 357X(f1) 1.50 V-0 1:20 V3900WX(GG)(f1)(IA), V3901WX(GG)(f1)(IA) 3.00 V-0 1:20 1.50 V-0 1:20 357(w)(f2)(IC), 357M(w)(f2)(IC), 357U(w)(f2)(IC) 1.50 V-0 1:20 UL94 V-0, V-1, V-2 SABIC GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polycarbonate (PC) 221(f2) 1.50 V-2 1:25 221R(f2) 1.50 V-2 1:25 500(f2), 500R(f2) 3.00 V-0 1:33 503(f1) 3.00 V-0 10:1 1.50 V-0 10:1 503(f1), 503R(f1) 3.00 V-0 10:1 1.50 V-0 10:1 943(ab) 1.50 V-0 1:20 943(f1) 1.50 V-0 1:20 943(f1), 923(f1) 1.50 V-0 1:20 950A, 920ASR, FXD911A(GG), 940ASR 1.50 V-2 1:25 CFR7630(f1)(gg*) 1.50 V-0 1:25 ML5139R(f2) 3.00 V-0 1:33 950A, FXD911A(GG), 940ASR 3.00 V-0 1:25 943 1.50 V-0 1:20 920A 3.00 V-0 1:25 1.50 V-2 1:25 Polycarbonate/ Acrylonitrile Butadiene Styrene (PC/ABS) C2950 1.50 V-0 6:100 C6200(GG) 2.00 V-0 1:20 Acrylonitrile Styrene Acrylate/ Polycarbonate (ASA/PC) HRA222 (GG) 0.80 V-2 1:20 UL94 V-0, V-1, V-2 SOLVAY OTHERS GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO Polyphenyl Sulfone (PPSU) R-5100 (r1)(##), R-5000 (r1)(##) 1.50 V-0 1:10 Polyphthalamide (PPA) AFA-4133 V0(+) (*) 0.75 V-0 1:25 BASE RESIN MANUFACTURER GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO ALBIS Polypropylene (PP) PP 13 CV2 14 1.50 V-2 1:25 AVIENT Polyvinylchloride (PVC) M3700(X), M3755(X) 1.50 V-0 1:25 M3900 1.50 V-0 1:25 CHI MEI Acrylonitrile Butadiene Styrene (ABS) PA-765(+) 1.50 V-0 1:10 Polycarbonate/ Acrylonitrile Butadiene Styrene (PC/ABS) PC-510(+) 1.50 V-0 1:25 EMS-CHEMIE Polyamide 6 (PA6) Grilon A 26 V0 0.75 V-0 1:25 FORMOSA Polycarbonate (PC) #1700+(f2) 0.36-0.42 V-2 1:50 GEON Polyvinylchloride (PVC) 85891(f1) 1.70 V-0 1:20 85891(f2) 1.70 V-0 1:20 M3700(X) 1.50 V-0 1:25 M3900 1.50 V-0 1:10 1:25 INEOS Polystyrene (PS) 855 HV 3.00 V-1 100:4 INVISTA Polyamide 66 (PA66) FRU4800 XHL (r1) 0.40 V-0 1:25 U4820L (r1) 0.40 V-2 1:25 UL94 V-0, V-1, V-2 OTHERS BASE RESIN MANUFACTURER GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO KINGFA Polyamide 66 (PA66) PA66-R11G25 (##) 0.25 V-0 1:25 KURARAY Polyamide 9T (PA9T) GP2300S 0.40 V-0 1:25 LG CHEM Polycarbonate/ Acrylonitrile Butadiene Styrene (PC/ABS) LUPOY GP-5106-F 3.00 V-0 1:20 LOTTE CHEMICAL Acrylonitrile Butadiene Styrene (ABS) VH-0800(+) 1.50 V-0 1:25 Polycarbonate (PC) HN-1064(+) 0.75 V-2 1:10 1.50 V-0 1:10 1.20 V-1 1:10 Polystyrene (PS) VH-1800+ 3.00 V-0 1:25 1.50 V-0 1:25 MITSUBISHI Polycarbonate (PC) S-2000+(f1) 1.50-1.80 V-2 1:10 POLYMER PRODUCTS Polystyrene (PS) ZYNTAR 351 2.00 V-0 1:20 1.50 V-0 1:20 ZYNTAR 7000 2.00 V-0 1:25 ZYNTAR 702 2.00 V-0 1:25 8020 2.00 V-0 1:20 8120 2.00 V-0 1:20 8130 1.50 V-0 1:20 POLYMER RESOURCES Polycarbonate (PC) PC-FR1A-D, PC- FR2A-D, PC-FR3A-D 3.00 V-0 1:33 1.50 V-2 1:33 SUMITOMO Liquid Crystal Polymer (LCP) E6007LHF(ra) 0.30 V-0 1:25 E6007LHF-MR(gt) 0.20 V-0 1:12.5 UL94 V-0, V-1, V-2 OTHERS BASE RESIN MANUFACTURER GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING MAXIMUM LET-DOWN RATIO TORAY Polyamide 6 (PA6) 1017 1.60 V-2 1:16.5 Polyamide 66 (PA66) 3004-V0(rr), CM3004-V0(rr) 0.40 V-0 1:25 TRINSEO Polycarbonate (PC) 891(w) 1.10 V-0 1:25 WELLMAN Polyamide 66/6 (PA66/6) 220-N, 21L-N, 22L-N 1.50 V-2 1:25 WESTLAKE Polyvinylchloride (PVC) 6597(f1), HF-6597(f1) 1.50 V-0 1:25 SP-7107 (f1)(a) 3.00 V-0 1:25 5VA AND 5VB BASE RESIN MANUFACTURER GENERIC RESIN TYPE SPECIFIC BASE RESIN MINIMUM THICKNESS (MM) FLAME RATING COLORS MAXIMUM LET-DOWN RATIO AVIENT Polyvinylchloride (PVC) M3900 1.50 5VB ALL 1:25 WHITE 1:10 COVESTRO Polycarbonate/ Acrylonitrile Butadiene Styrene (PC/ABS) FR3010 + (z) 3.00 5VA ALL 1:25 DUPONT Polyamide 66/6T (PA66/6T) FR95G25V0NH 1.50 5VA ALL 1:25 Polybutylene Terephthalate (PBT) LW9030FR 2.00 5VA BLACK 1:25 3.00 5VA ALL 1:25 SK642FR 1.50 5VA BLACK 1:25 GEON Polyvinylchloride (PVC) M3900 1.50 5VB ALL 1:25 WHITE 1:10 SABIC Polybutylene Terephthalate/ Polycarbonate (PBT/PC) V3900WX(GG)(f1)(IA), V3901WX(GG)(f1)(IA) 3.00 5VA ALL 1:20 1.844.4AVIENT www.avient.com Copyright © 2020, Avient Corporation.
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We are Avient. 6 BETTER TOGETHER: POLYONE AND CLARIANT COLOR Key Financial Data 2021 Sales $4.8 billion 2021 EBITDA $581 million 87% of EBITDA from specialty applications 2021 PE RF O RM AN CE $80 $85 2020 2021 $0.52 $0.58 2020 2021 Q4 2021 PERFORMANCE (TOTAL COMPANY) 8 Sales Adjusted Operating Income $997 $1,202 2020 2021 + 21% Adjusted EPS + 6% + 12% (in millions) (in millions) $308 $429 2020PF 2021 $1.93 $3.05 2020PF 2021 FULL YEAR 2021 PERFORMANCE (TOTAL COMPANY) 9 Sales Adjusted Operating Income $3,783 $4,819 2020PF 2021 + 27% Adjusted EPS + 39% + 58% (in millions) (in millions) (1) Financial information is pro forma to include a full year of Clariant Color business (1) (1) (1) FULL YEAR 2021 SEGMENT PERFORMANCE 10 CAI $2,043 $2,402 Sales ($ in millions) SEM Distribution $226 $303 Operating Income + 18% + 34% $1,110 $1,631 Sales $70 $93 Operating Income + 47% + 33% (1) $709 $919 Sales $94 $132 Operating Income + 30% + 40% (1) Financial information is pro forma to include a full year of Clariant Color business (1) Full Year 2020 (Pro forma) $3,783 $308 Sustainable Solutions 147 19% 60 Healthcare 143 28% 30 Composites 58 43% 29 Growth in Asia / LATAM 107 21% 26 Other 543 30% 58 Sub-total $4,781 26% $511 Wage Inflation and Overtime (39) Other Supply Chain Costs (15) COVID Response Applications (22) (12) Synergies 44 FX, Incentives, Other Employee Costs 60 (60) Full Year 2021 $4,819 27% $429 FULL YEAR 2021 SALES AND OPERATING INCOME (TOTAL COMPANY) 11 Sales Growth Rate Adjusted Operating Income$ millions (1) Financial information is pro forma to include a full year of Clariant Color business (1) Adjusted EBITDA 12 Full Year 2020 (Pro forma) $ 457 Demand 135 $ millions CAI: Price / Mix 158 Inflation (120) SEM: Price / Mix 84 Inflation (65) Distribution: Price / Mix 318 Inflation (304) Net Price Benefit 71 Wage Inflation and Overtime (39) Other Supply Chain Costs (15) COVID Response Applications (12) Synergies 44 Incentives, FX, Other Employee Costs (60) Full Year 2021 $ 581 (1) Financial information is pro forma to include a full year of Clariant Color business (1) • Demand impact driven by growth in key focus areas: sustainable solutions, healthcare, composites and growth in Asia / LATAM • Price increases more than offset raw material and supply chain impacts FULL YEAR 2021 EBITDA BRIDGE SPECIALTY EBITDA MARGIN EXPANSION 13 CAI (1) 2018-2020 financial information is pro forma to include a full year of Clariant Color business 15.3% 15.2% 16.2% 17.0% 2018 2019 2020 2021 14.8% 15.2% 17.6% 17.8% 2018 2019 2020 2021 (1) SEM • Record margins in 2021 despite unprecedented supply chain challenges • Continued portfolio transformation to high-growth end markets and sustainable solutions • Clariant Color synergy realization • Investments in composites and outdoor high performance applications drove growth and mix improvements • Acquisition of Clariant Color business significantly expanded presence in healthcare, packaging and consumer end markets • Strength of portfolio – double-digit annual EBITDA growth since acquisition • $54 million of synergies realized in 2021 • Acquisition completed on July 1, 2020 for $1.45 billion.
https://www.avient.com/sites/default/files/2021-03/avient-march-ir-fermium_0.pdf
These investments also consider our global footprint, and we are positioned very well and strategically from a regional perspective. 8 Growth Drivers 2020 Revenue ($ Millions) Long-Term Growth Rate Sustainable Solutions $ 560 8–12% Healthcare 555 8–10% Composites / 5G 212 10% Growth in Emerging Regions 672 5% Other (GDP growth) 1,784 2–3% Pro Forma Avient $ 3,783 6.5% 2020 PE RF O RM AN CE 2020 HIGHLIGHTS 10 • 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 2019PF 2020PF 10% 23%8% 21% 4% 15% 2006 2020PF Healthcare Consumer Packaging Avient Portfolio Transformation 22% 59% CLARIANT MASTERBATCH: TRANSFORMATIONAL ACQUISITION 11 Clariant MB EBITDA Growth Purchase Price Multiple 10.8 9.6 6.5 2019PF 2020PF 2020PF w/ Full Synergies x x x • 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.
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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?
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PolyOne Corporation Page 4 PolyOne Commodity to Specialty Transformation • Volume driven, commodity producer • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures 2000-2005 2006 - 2009 2010 – 2014 2015 and beyond • Steve Newlin appointed, Chairman, President and CEO • New leadership team appointed • Implementation of four pillar strategy • Focus on value based selling, investment in commercial resources and innovation to drive transformation • Substantial EPS growth from $0.13 to all-time high of $1.80 • Shift to faster growing, high margin, less cyclical end markets • Key acquisitions propel current and future growth, as well as margin expansion • Specialty mix expands to 65% of Operating Income – strongest mix of earnings in history • Accelerating growth • Deliver consistent double digit annual EPS growth • Maintain >35% vitality index • Pursue strategic acquisitions that expand specialty offerings and geographic breadth • Invest and grow current and next generation talent PolyOne Corporation Page 5 Appliances 5% Building & Construction 12% Consumer 10% Electrical & Electronics 5% Healthcare 11% Industrial 14% Packaging 14% Transportation 20% Wire & Cable 9% Distribution 28% PP&S 20% Specialty 52% United States 69% Europe 13% Canada 7% Asia 6% Latin America 5% 2014 Revenues: $3.8 Billion End Markets 2014 Revenues: $3.8 Billion PolyOne At A Glance $0.12 $0.27 $0.21 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 2006 2007 2008 2009 2010 2011 2012 2013 2014 Adjusted EPS PolyOne Corporation Page 6 Old PolyOne *Operating Income excludes corporate charges and special items 2% 34% 43% 62% 65% 66% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2013 2014 YTD 2015 2020 % o f O pe ra tin g In co m e* JV's Performance Products & Solutions Distribution Specialty 80%+ Specialty OI $5M $46M $87M $195M $242M $183M Mix Shift Highlights Specialty Transformation Transformation 2020 Platinum Vision Platinum Vision PolyOne Corporation Page 7 Confirmation of Our Strategy Specialization Globalization Operational Excellence Commercial Excellence Driven by our core values of Collaboration, Innovation and Excellence, we are the world’s premier provider of specialized polymer materials, services and solutions PolyOne Corporation Page 8 2006 YTD 2015 2020 “Where we were” “Where we are” Platinum Vision 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 17.2% 20%+ Global Specialty Engineered Materials 1.1% 15.1% 20%+ Designed Structures & Solutions 1.4% (2012) 3.5% 12 – 14% Performance Products & Solutions 5.5% 8.1% 10 – 12% Distribution 2.6% 6.6% 6.5 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 66% 80%+ 3) ROIC 5.0% 11.9% 15% 4) Adjusted EPS Growth N/A 24 Consecutive Quarters of YOY EPS Growth Double Digit Expansion Proof of Performance & 2020 Goals PolyOne Corporation Page 9 Innovation Drives Earnings Growth *Percentage of Specialty Platform revenue from products introduced in last five years $20 $52 2006 TTM Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 28% 2006 TTM Specialty Platform Gross Margin % 12% 43% 2006 TTM Specialty Vitality Index Target ≥ 35% TTM 9/30/15 TTM 9/30/15 TTM 9/30/15 PolyOne Corporation Page 10 Innovation Pipeline Potential Prototype Frame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 12 4 9 6 1 6 3 7 4 5 6 1 1 7 2 Breakthrough Platform Derivative Number of Projects 12 10 23 19 10 74 Specialty Addressable Market ($ millions) - - $1,150 $1,000 $250 $2,400 PolyOne Corporation Page 11 Lightweighting with Advanced Composites Increasing Healthcare Penetration Innovation Initiatives Expansion in Consumer Markets New Market Development $$$ $$ $ High Temperature Polymers PolyOne Corporation Page 12 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 13 Customer First Through World-Class Service Strengthening relationships through: Providing LSS services to small/medium sized customers • Supporting customers who lack their own formal process improvement initiatives Providing training in Customer Centric Selling Skills with customers’ sales force PolyOne Corporation Page 14 60% 97% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 Q3 2015 Pension Funding** As of September 30, 2015 Debt Maturities & Pension Funding Net Debt / Adjusted EBITDA** = 2.1x $49 $121 $317 $600 $400 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2018 2020 2023 Debt Maturities As of September 30, 2015 ($ millions) Coupon Rate: 7.500% Variable* 7.375% 5.250% ** includes US-qualified pension plans only *Weighted average rate on revolver was 2.49% as of 9/30/15 **TTM 9/30/2015 PolyOne Corporation Page 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 $0.32 $0.40 $0.48 $0.10 $0.20 $0.30 $0.40 $0.50 2011 2012 2013 2014 2015 2016 Annual Dividend Targets that expand our: • Specialty offerings • End market presence • Geographic breadth Synergy opportunities Adjacent material solutions Repurchased nearly 2.4 million shares in Q3 2015 Repurchased 14.8 million shares since early 2013 5.2 million shares are available for repurchase under the current authorization $0.24 PolyOne Corporation Page 16 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?