https://www.avient.com/sites/default/files/2024-03/AS-FILED EF20024640 Avient Corp ARS.pdf
OUR CULTURE
OUR
SUSTAINABILITY
GUIDING
PRINCIPLE
AND FOUR
CORNERSTONES
To enable our customers’
innovation and sustainability
goals through world-class
products and services.
Our guiding principle of sustainability is to enable our customers’ innovation and sustainability goals through
products and services.
These solutions meet a wide variety of unique customer requirements for
sustainability, in particular light weighting.
https://www.avient.com/sites/default/files/2020-08/oncolor-naturals-product-bulletin.pdf
OnColor Naturals uses a variety of vegetal pigments
that have traceability of origin and are cultivated
using sustainable practices in accordance with the
CITES Convention and the Nagoya Protocol.
https://www.avient.com/sites/default/files/2021-02/avients-publication-of-uk-tax-strategy.pdf
To the extent that the Avient Group does engage
in UK tax planning, the Avient Group will only engage in such UK tax planning when it is more likely than not that
the tax positions will be sustained upon audit.
https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202018.pdf
Patterson
Chairman, President and CEO
INTRODUCTION
B O B P A T T E R S O N
PolyOne Corporation 7
PolyOne Corporation 8
H I S T O R I C P A S T
S U S T A I N A B I L I T Y A T P O L Y O N E
PolyOne Corporation 9
P E O P L E P R O D U C T S P L A N E T
S A F E T Y F I R S T
PolyOne Corporation 10
1.3
1.1 1.1
0.85
0.65
0.57
0.54
0.97
0.84
0.74 0.74
0.69
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Injuries per 100 Workers
Spartech
Acquisition
T H E P O L Y O N E A C A D E M Y
PolyOne Corporation 11
Leadership Program Participants
2012
2013
2015
86
2016
125
169
216
Campus Hires
2008
2011
25
S U S T A I N A B L Y I M P A C T I N G D I V E R S E E N D M A R K E T S
PolyOne Corporation 12
With emphasis on:
• Light-weighting
• Reducing packaging materials
• Improving recyclability
• Reducing spread of infection
• Facilitating alternative energy
solutions
Building &
9%
Electrical &
P R O D U C T S A N D P O R T F O L I O O P T I M I Z A T I O N
PolyOne Corporation 13
R E I N V E S T G R O WD I V E S T ( D S S )
OUR PLANET
PolyOne Corporation 14
Energy
Saving Projects
26
REDUCTION
REDUCTION
Waste
Reduction Projects
2,557
LSS Projects
Executed
202
PolyOne LSS
Blackbelts
2011
2017 202
2008
147
67
2,557
2008 2017
S U S T A I N A B I L I T Y A T P O L Y O N E
PolyOne Corporation 15
2009 2010 2011 2012 2013 2014 2015 2016* 2017*
A D J U S T E D E P S E X P A N S I O N
C O N S E C U T I V E
Y E A R S
PolyOne Corporation 16
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
$2.06
$2.21
*Pro Forma for sale of DSS
E A R L Y Y E A R S D E F I N E D B Y S P E C I A L T Y
M I X I M P R O V E M E N T
PolyOne Corporation 17
65%
2005 2014
$5M $242M
+ 25%
+ 33%
Specialty OI
% of Operating Income
C O M M O D I T Y P R U N I N G
H E L D O R G A N I C S A L E S F L A T
PolyOne Corporation 18
2010 2011 2012 2013 2014
Acquisitions
Organic
Revenue
I N V E S T M E N T I N COMMERCIAL RESOURCES D R I V I N G R E S U L T S
PolyOne Corporation 19
Largest organic revenue growth
since recession
$2.9 $2.9
$3.2
2015 2016 2017
Revenue in billions of $
Total + 10%
Organic + 7%
S U S T A I N A B L E P A T H T O D O U B L E - D I G I T E P S G R O W T H
PolyOne Corporation 20
Double digit
annual EPS
growth
Expand specialty portfolio
with strategic acquisitions
Innovate and develop new
technologies and services
Repurchase 600K-1M
shares annually
Increase commercial
resources 6-8% annually
Double acquired
company margins
Enhance efficiencies
through Lean Six Sigma
and commercial excellence
5.0%
2006 2017 Platinum Vision Updated Expectations
R A I S I N G T H E B A R
R O I C D R I V E S S H A R E H O L D E R R E T U R N
PolyOne Corporation 21
COMMERCIAL
EXCELLENCE
PolyOne Corporation 22
M I C H A E L G A R R A T T
PolyOne Corporation 23
PolyOne Corporation 24
35% more sales calls
25% more marketing campaigns
1,000 new customers, expanding
customer base by 5%
$1.0B increase in new opportunities
8% reduction of average territory
size, enabling greater
customer focus
20% more prospecting calls
PolyOne Corporation 25
P O L Y O N E
+34%
$3.0 billion
$4.0 billion
A L I G N I N G W I T H T R E N D S F O R G R O W T H
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 E C O N S U M E R
PolyOne Corporation 26
Facilitate
alternative
energy
solutions
Light-
weighting
Reduce
packaging
materials
Improve
recyclability
Reduce
spread of
infection
PolyOne Corporation 27
Customization
55%
M&A
Innovation
Pipeline
Adjacent
Opportunity for
Growth Through New
Innovation comes from
PolyOne Corporation 28
Adjacent
Opportunity for
Growth Through New
New
development
adjacent to our
existing
New development
beyond our current
Development within
our current
markets and
Create new
markets, target
new customer
Service existing
markets and
Adjacent
Opportunity for
Growth Through New
PolyOne Corporation 29
markets and
Create new
markets, target
new customer
Service existing
markets and
Gordon/Polystrand –
Composites
GLS – Thermoplastic Elastomers
ColorMatrix – Liquid
Color & Additives
New
development
adjacent to our
existing
New development
beyond our current
Development within
our current
Adjacent
Opportunity for
Growth Through New
PolyOne Corporation 30
markets and
Create new
markets, target
new customer
Service existing
markets and
Non-Halogen Flame
Retardant Polymers
Barrier Technologies
Fiber Colorants
Advanced Composites
Thermoplastic Elastomers
New
development
adjacent to our
existing
New development
beyond our current
Development within
our current
I N N O V A T I O N P I P E L I N E
PolyOne Corporation 31
PrototypeFrame
Opportunity
Scale-up & Test
Build
Business Case
Commercial
Launch
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
6
2 1
15 4
10
11
4
7
Breakthrough
Platform
Derivative
Number of Projects 26 16 20 15 2 79
Color Technologies – – $335 $670 $410 19 $1,415
Barrier Additives – – $160 $255 – 8 $415
Flame Retardant Polymers – – $200 $50 – 14 $250
Thermoplastic Elastomers – – $410 $80 $30 17 $520
Advanced Composites – – $100 $40 – 8 $140
Specialty Vinyl Formulations – – $25 $75 – 13 $100
Total Addressable Market
($ millions)
– – $1,230 $1,170 $440 $2,840
38%
$20
$52
Research & Development Spend
($ millions)
Vitality Index
% of sales from products launched last 5 years
I N N O V A T I O N D R I V E S E A R N I N G S G R O W T H
PolyOne Corporation 32
A U N I Q U E C U S T O M E R E X P E R I E N C E
Industrial
Design
IQ DESIGN LABS
PolyOne Corporation 33
Material
& Color
Expertise
Manufacturing
Expertise
3
14
Industrial designers
$0
$7M
$4M
$40M
Opportunity funnel New business revenue
3 D P R I N T I N G
B R I N G I N G N E W I D E A S T O L I F E
PolyOne Corporation 34
Enables validation of fit and function
Shortens design cycle and time to market
Avoids tooling rework
Drives innovation
Delivers substantial customer value
LSS CUSTOMER FIRST
PolyOne Corporation 35
Customer Projects
Enables sales growth by building more intimate
customer relationships, giving us insight to customers’
needs, with a service that is not easily replicated
2 85
Lead
Specialists
T H E E V O L V I N G C U S T O M E R R E L A T I O N S H I P
PolyOne Corporation 36
Expanded Path
Traditional Path
Strategic Accounts/
Field Sales
Business
Development
Customer
Service
Web and Social
Media
Inside Sales
PolyOne Corporation 37
Investments in digital and dedicated inside sales to
improve customer experience
80% increase in leads (from 6,000 to 11,000) driven
by website, phone, and online chat
EXPANDED PATH
A D D I N G C U S T O M E R T O U C H P O I N T S
4
21
Inside sellers
$11M
$88M
Inside sales/digital revenue
4 focused end-markets aligned with global
megatrends
5 strategic innovation platforms
30% increase in IQ Design projects
35% increase in revenue from inside sales/digital
≥35% vitality index
PolyOne Corporation 38
I N N O V A T I N G W I T H P O L Y O N E
PolyOne Corporation 39
SEGMENT REVIEWS
POLYONE
DISTRIBUTION
PolyOne Corporation 40
S C O T T H O R N
D I S T R I B U T I O N
E N D M A R K E T S & S U P P L I E R S
PolyOne Corporation 41
23%
22%
Electrical &
Building &
$20
$63
$73
2.9%
5.9%
1.0%
3.0%
5.0%
7.0%
15
25
35
45
55
65
75
Operating Income & Margin2017 Revenue | $1.2 Billion
http://www.polyone.com/Pages/VariationRoot.aspx
http://www.polyone.com/Pages/VariationRoot.aspx
S E R V I C E I S O U R B U S I N E S S
PolyOne Corporation 42
Uniquely positioned to help our customers grow
their brand and value-added solutions
1.2B
$
Annual Sales
250
Global Employees
24
Strategic
Presence
132
Sales Reps
Warehouse
Locations
6
Service Centers
Dedicated Commercial
Team
S E R V I C E I S O U R B U S I N E S S
S A F E L Y A N D R E S P O N S I B L Y
PolyOne Corporation 43
95% on-time delivery
Customer/Product
Combinations
14,000
Transactions/Month
In-Person
Customer Visits
6,500 27,000
$
PolyOne Corporation 44
37% more sales calls
$65M in new revenue from
inside sales
$400M increase in new
opportunities
24% increase in close rate
51% increase in prospecting calls
119
13211
1315
23
Sales R&D / Technical Marketing
+ 53%
+ 11%
PolyOne Corporation 45
Providing differentiated services that meet the needs
of the changing customer landscape
G R O W T H T H R O U G H I N S I D E S A L E S
$65
PolyOne Distribution Inside Sales
$ in millions
PolyOne Corporation 46
G R O W T H T H R O U G H M U L T I P L E S A L E S
C H A N N E L S
Technical
Field Sales
Key Accounts /
Industry Sales
Inside
Sales
Serving a broad spectrum of customers
Leveraging digital systems to drive awareness and
enhance the customer experience
PolyOne Corporation 47
P O D S A L E S
+27%
$1.2 billion
$1.6 billion
>10% annual increase in revenue from inside sales and
digital with expanded customer touch points
8% annual expansion of sales funnel with best-in-class
service and technical expertise
6-8% compound annual operating income growth
6-7% operating margins
PolyOne Corporation 48
SPECIALTY
ENGINEERED
MATERIALS
PolyOne Corporation 49
M I C H A E L G A R R A T T
S P E C I A L T Y E N G I N E E R E D M A T E R I A L S
PolyOne Corporation 50
Engineered
Formulations
Advanced
Thermoplastic
Elastomers
19%
Electrical &
13%
8%
Building &
S P E C I A L T Y E N G I N E E R E D M A T E R I A L S
Revenue by Region Operating Income & Margin
2 0 1 7 R E V E N U E | $ 6 2 4 M I L L I O N
PolyOne Corporation 51
$21
$57
$76
0.1%
5.1%
9.3%
12.1%
Europe
28%
48%
22%
C A P I T A L I Z I N G O N T H E G L O B A L M A R K E T
PolyOne Corporation 52
Demand for engineered materials is accelerating
Expanding thermoplastic elastomer portfolio to meet
the demands of local consumption
Grow and develop low smoke, non-halogen
technologies to meet increasing European standards
Adding capacity in strategic markets
India Germany
China North America
Establishing a commercial hub in Southeast Asia
PolyOne Corporation 53
PolyOne Corporation 54
13% more sales calls
36% increase in customization
projects
$270M increase in new opportunities
12% reduction in average territory
size, enabling greater
customer focus
50% improvement in speed of
formulation turnaround
Increased commercial headcount
133
17335
39
120
147
+ 30%
+ 11%
PolyOne Corporation 55
S E M
S A L E S
+43%
$610 million
$880 million
PolyOne Corporation 56
Leading Sporting Goods
Manufacturer
Provided Lean Six Sigma training
and led an onsite Black Belt
project to improve product
development cycle times
Reduced
innovation project
cycle times by over
10%
and prototyping by
40%
80%
increased
resulting in
$500k
savings
I N N O V A T I O N S P O T L I G H T :
C O M P O S I T E S
PolyOne Corporation 57
C O M P O S I T E S R E F R E S H E R
PolyOne Corporation 58
Polymer
Composite
Strength
Design Flexibility
Continuous
Fiber
Thermoset
Short Glass
Fiber
Thermoplastics
Continuous Fiber
Long Glass Fiber
Thermoplastics
S T R A T E G I C I N V E S T M E N T H I S T O R Y
PolyOne Corporation 59
Acquired
Polystrand
Installed LFT
production
Avon Lake
Long Fiber
Thermoplastic
(LFT)
Technology
Installed
LFT
Barbastro,
Spain
Acquired
Glasforms
Acquired
Gordon
Thermoplastic
Long Fiber Reinforced Thermoplastics
Continuous Fiber Thermosets
2010 2012 2015 2016 20162009 20122011 2014
C O M P O S I T E S I N T R A N S P O R T A T I O N
PolyOne Corporation 60
W A T E R C R A F TR A I L H E A V Y T R U C K
Bulkheads and Transoms
Ceilings and Hatches
Doors and Cabinetry
Flooring
Door Panels
Side Walls
Flooring & Side Panels
Aerodynamic Fairings
Seat and Bunk
Reinforcements
44
At Acquisition Now
Commercial Resources
0%
At Acquisition Goal
Operating Margins
Test Market
Innovation
Projects
PolyOne Corporation 61
A D V A N C E D C O M P O S I T E S
Long-term investments align with key global megatrends
Light-Weighting Design Flexibility Sustainability
>10% annual increase in customization projects
10% annual expansion of sales funnel, enhancing
portfolio in 4 focus end markets
20% increase in global capacity
12-15% compound annual operating income growth
14-16% operating margins
PolyOne Corporation 62
PERFORMANCE
PRODUCTS
& SOLUTIONS
PolyOne Corporation 63
D O N W I S E M A N
P E R F O R M A N C E P R O D U C T S & S O L U T I O N S
PolyOne Corporation 64
Specialty Vinyl
Solutions
Healthcare
Formulations
Smart Device
Materials
Flame Retardant
Polymers
Building &
Electrical &
1%
Asia
77%
Mexico
P E R F O R M A N C E P R O D U C T S & S O L U T I O N S
Operating Income & MarginRevenue by Region
2 0 1 7 R E V E N U E | $ 7 2 1 M I L L I O N
$40
$33
$56
$77
4.6%
3.6%
7.2%
10.7%
16.0%
10
PolyOne Corporation 65
$886 $668 $773 $721Sales
PolyOne Corporation 66
PolyOne Corporation 67
25% more sales calls
113% increase in innovation
pipeline
$240M increase in new
opportunities
36% increase in
prospecting calls
300 basis point
improvement in
operating margin
57
66
18
37
53
+ 16%
+ 43%
+ 6%
PolyOne Corporation 68
P P & S
S A L E S
+40%
$610 million
$850 million
PolyOne Corporation 69
Leading Wire & Cable
Manufacturer
Provided Lean Six Sigma training
and led on-site Kaizen process
improvements
Reduced
over
400
labor hours
through
reorganized
work area and
floor space
Increased
manufacturing
throughput value
$1.4M
PolyOne Corporation 70
IQ Design is collaborating with a
leading medical device
manufacturer to replace metal
and provide chemical resistance
to solve cracking issues related
to intense cleaning requirements
H E A L T H C A R E I N N O V A T I O N S
I N N O V A T I O N S P O T L I G H T :
F L A M E R E T A R D A N T
P O L Y M E R S
PolyOne Corporation 71
F L A M E R E T A R D A N T
D R I V E R S
PolyOne Corporation 72
Shift toward less toxic solutions
Increased consumer awareness
Focus on environmentally
friendly solutions
New regulatory standards
F L A M E R E T A R D A N T P E R F O R M A N C E S P E C T R U M
PolyOne Corporation 73
Flame Retardant Flame Retardant Flame Retardant
Non-Halogen
No Dripping
Low Smoke
Low Toxicity &
Corrosiveness
H A L O G E N N O N - H A L O G E N L S F O H
( L o w S m o k e a n d F u m e ,
N o n - H a l o g e n )
Non-Halogen
R E G U L A T O R Y C H A N G E S P R O V I D E O P P O R T U N I T Y
L E D S O L U T I O N S
PolyOne Corporation 74
Solutions for rigid molded &
extruded applications
Superior outdoor weather performance
Excellent light dispersion qualities
Formulated to meet stringent
flame-rating regulations
Custom design support to meet demand
8% more sales calls annually
10% annual expansion of sales funnel, including
breakthroughs in healthcare technologies
8-10% compound annual operating income growth
12-14% operating margins
PolyOne Corporation 75
COLOR ADDITIVES
& INKS
PolyOne Corporation 76
M A R K C R I S T
C O L O R , A D D I T I V E S & I N K S
PolyOne Corporation 77
Solid
Colorants
Performance
Additives
Screen
Printing Inks
Liquid
Colorants
27%
14%
Textiles
Building &
8%
Electrical &
Operating Income & MarginRevenue by Region
C O L O R , A D D I T I V E S & I N K S
2 0 1 7 R E V E N U E | $ 8 9 3 M I L L I O N
$104
$139
0.9%
5.5%
12.2%
15.5%
16.0%
18.0%
110
120
130
140
150
PolyOne Corporation 78
Europe
32%
46%
1%
Mexico
Brazil
C A P I T A L I Z I N G O N T H E G L O B A L M A R K E T
PolyOne Corporation 79
Emerging markets driving strong demand for color
and additives
Rapid adoption of food and beverage
packaging additives
Fiber colorants growth focused on expanding
Asia-Pacific market
Increase commercial investments focused on China,
India and Mexico
Expand capacity in China and leverage investments
in India
Recent acquisitions increasing global reach
PolyOne Corporation 80
PolyOne Corporation 81
35% more sales calls
30% increase in customized color
formulations
106% increase in innovation pipeline
$170M increase in new opportunities
20% increase in prospecting calls
9 days or less in design
turnaround time:
best-in-class
Increased commercial investment
301
382
38
43
209
275
+ 27%
+ 13%
+ 32%
PolyOne Corporation 82
C A I S A L E S
+32%
$540 million
$710 million
PolyOne Corporation 83
Developed
inventory
management
framework to
reduce
working
capital by
Printing Equipment
and Supply Manufacturer
Provided Lean Six Sigma training
and conducted process mapping
exercises to identify key
improvement opportunities
Optimize
manufacturing:
45%
improvement in
assembly process,
25%
cycle time
A D D I T I V E & C O L O R A N T
T E C H N O L O G I E S
PolyOne Corporation 84
B A R R I E R T E C H N O L O G I E S
Active oxygen scavenging
additive in the bottle wall
Evolving technology for active
oxygen scavenging additive in
the bottle cap
Amosorb™ HyGuard™
UV and visible light blocking
additive to prevent degradation
of product
Lactra™ SX
Market leader in oxygen, light and UV barrier solutions for the PET bottle market
PolyOne Corporation 85
S T R A T E G I C A D D R E S S A B L E M A R K E T > $ 2 0 0 M
F I B E R C O L O R A N T S
Eliminate waste water associated
with conventional dyeing
Help meet sustainability targets
for brand owners
Enable “uncolored fiber” producers
to bypass dyehouse
Strategic addressable market >$300M
PolyOne Corporation 86
S T R A T E G I C I N V E S T M E N T H I S T O R Y
PolyOne Corporation 87
Thermoplastic
2011 2015 2018
Acquired
ColorMatrix
Acquired
Magenta
Acquired
IQAP
$10
$45
Revenue from Fiber Color
Invested in
development
of liquid fiber
colorant
technology
Expanded
solid
colorant
offerings
38
43
At Acquisition Now
Commercial Resources
Innovation
Projects
PolyOne Corporation 88
I N V E S T I N G F O R T H E F U T U R E
Nearly 900 projects identified
Gaining sustainable momentum & building trust with consumers
Sales Funnel
$125M
“We are unleashing the power of human potential, all
to advance the game.
NIKE Website Sustainability Video
PolyOne Corporation 89
C O L O R M A T R I X S E L E C T ™
PolyOne Corporation 90
REDEFINING COLOR CREATION
Innovative system for processors and
OEMs to develop colors in real time
Complete system that provides
customers with the freedom to match,
prototype and produce color entirely
within their own facility
E N A B L I N G T H E C U S T O M E R
Empowers the customer to move at their speed by reducing complexity and
simplifying the supply chain.
3D printing.
Investor Day Deck - Web
Investor Day
Forward �Looking �Statements
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
USE OF �NON-GAAP�MEASURES
Investor Day Agenda May 10, 2018
The Leaders Behind the Team
Introduction
Historic Past
Sustainability AT PolyOne
Safety First
the PolyOne Academy
Sustainably Impacting diverse End Markets
Products and Portfolio Optimization
OUR PLANET
Sustainability AT PolyOne
Adjusted EPS Expansion
Early years defined by Specialty �mix improvement
Commodity Pruning �Held Organic Sales Flat
Investment in Commercial Resources Driving Results
Sustainable Path to Double-Digit EPS Growth
Raising the Bar�ROIC drives shareholder return
Commercial Excellence
STRATEGIC INVESTMENT IN 3 KEY AREAS
Key Commercial Investments
New Resources Fueling the Future
Aligning with trends for Growth
Innovation
3 Horizons of Development
3 Horizons of Development
3 Horizons of Development
Innovation Pipeline
Innovation Drives Earnings Growth
IQ DESIGN LABS
3D Printing�Bringing New ideas to life
LSS CUSTOMER FIRST
The Evolving Customer Relationship
Slide Number 37
Inspired future
Innovating with PolyOne
PolyOne Distribution
DISTRIBUTION
Service is our business
Service is our business
Key Commercial Investments
Growth through Inside Sales
Growth through Multiple Sales Channels
New Resources Fueling the Future
Inspired future
Specialty Engineered Materials
Specialty Engineered Materials
Specialty Engineered Materials
Capitalizing on the global market
STRATEGIC INVESTMENT IN 3 KEY AREAS
Key Commercial Investments
New Resources Fueling the Future
growth Through Service
Innovation Spotlight: Composites
Composites Refresher
Strategic Investment History
COMPOSITES in Transportation
Slide Number 61
Inspired future
Performance Products �& Solutions
Performance Products & Solutions
Performance Products & Solutions
STRATEGIC INVESTMENT IN 3 KEY AREAS
Key Commercial Investments
New Resources Fueling the Future
Growth Through Service
Growth Through Service
Innovation Spotlight: �Flame Retardant�Polymers
FLAME RETARDANT �DRIVERS
Flame Retardant Performance Spectrum
LED Solutions
Inspired future
Color Additives�& Inks
COLOR, ADDITIVES & INKS
Color, Additives & Inks
Capitalizing on the global market
STRATEGIC INVESTMENT IN 3 KEY AREAS
Key Commercial Investments
New Resources Fueling the Future
Growth Through Service
Innovation Spotlight: Additive & Colorant�Technologies
Barrier Technologies
Fiber Colorants
Strategic Investment History
Slide Number 88
Slide Number 89
COLORMATRIX SELECT™
Enabling the Customer
Slide Number 92
Inspired future
M&A Review
Over a decade of successful specialty acquisitions
Invest-to-Grow Strategy
Invest-to-Grow Playbook
Invest-to-Grow Proof of performance
Invest-to-Grow Proof of performance
Invest-to-Grow Driving the future
Invest-to-Grow Driving the future
Strong Pipeline�driven by fragmented Market
Summary
Financial Review
Adjusted EPS Expansion
Strategic cash deployment
Proof of Performance �Expanding Margins & ROIC
Investment in Commercial Resources Driving Results
Sustainable Path to Double-Digit EPS Growth
ROIC drives shareholder return
ROIC drives shareholder return
Conclusion
Investor Presentation - May 2018 Non-GAAP
Investor Presentation - March 2018
https://www.avient.com/sites/default/files/resources/PolyOne%2520Investor%2520Presentation%2520Longbow%2520Basic%2520Materials%2520Conference%2520-%2520March%25202016.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
Our ability to realize anticipated savings and operational benefits from the realignment of assets, including the closure of manufacturing facilities;
The timing of closings and shifts of production to new facilities related to asset realignments and any unforeseen loss of customers and/or disruptions of
service or quality caused by such closings and/or production shifts;
Separation and severance amounts that differ from original estimates;
Amounts for non-cash charges related to asset write-offs and accelerated depreciation realignments of property, plant and equipment, that differ from
original estimates;
Our ability to identify and evaluate acquisition targets and consummate acquisitions;
The ability to successfully integrate acquired companies into our operations, retain the management teams of acquired companies, retain relationships
with customers of acquired companies, and achieve the expected results of such acquisitions, including whether such businesses will be accretive to our
earnings;
Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and
cost of credit in the future;
The financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate
liquidity) to maintain their credit availability;
The speed and extent of an economic recovery, including the recovery of the housing market;
Our ability to achieve new business gains;
The effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks;
Changes in polymer consumption growth rates and laws and regulations regarding the disposal of plastic in jurisdictions where we conduct business;
Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online;
Fluctuations in raw material prices, quality and supply and in energy prices and supply; production outages or material costs associated with scheduled
or unscheduled maintenance programs;
Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters;
An inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital
reductions, cost reductions and employee productivity goals;
An inability to raise or sustain prices for products or services;
An inability to maintain appropriate relations with unions and employees;
Our ability to continue to pay cash dividends;
The amount and timing of repurchases of our common shares, if any; and
Other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and
changes in the rate of inflation.
The above list of factors is not exhaustive.
We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
Addressable market exceeds $40 billion
Strong performance demonstrates that our strategy and execution
are working
Megatrends and emerging opportunities align with our strengths
Innovation and services provide differentiation, incremental pricing
power, and competitive advantage
Strong and proven management team driving growth and
performance
PolyOne Corporation Page 21
Appendix
PolyOne Corporation Page 22
Recent Acquisitions
Kraton TPE Assets Magenta Master Fibers
February 2016 – Acquired Kraton’s thermoplastic
elastomer (TPE) assets
Serve personal care, medical, packaging (protective
film) and electronics applications
Purchase price of $72 million represents a multiple
of 9x EBITDA
Adds $35 million in annual revenue and $0.03
accretive to 2016 adjusted EPS
Expands GLS presence in consumer, healthcare,
transportation, and packaging end markets
December 2015 – Acquired Magenta Master Fibers,
an innovative developer of specialty color
concentrates for the global fiber industry
Purchase price of $22 million represents a multiple
of 6.8x EBITDA
Adds $16 million in annual revenue and $0.01
accretive to 2016 adjusted EPS
Broadens portfolio of colorant and additives
technologies for fiber applications and extends
existing reach into strategic end markets such as
transportation and consumer goods
Medical
Baby Care Electronics
Food Packaging
Automotive Textiles Home Textiles
Clothing Outdoor
PolyOne Corporation Page 23
$0.82
$1.00
$1.31
$1.80 $1.96
$0.00
$0.75
$1.50
$2.25
2011 2012 2013 2014 2015
Adjusted EPS
2015 Full Year Financial Highlights
Color Additives & Inks operating
margin reached record level
of 16.7%
Specialty Engineered Materials
operating margin grew 260 basis
points year-over-year to 14.7%
Adjusted EPS has grown on average
24% per year since 2011
$50
$75
$104
$125 $135
$0
$40
$80
$120
$160
2011 2012 2013 2014 2015
CAI Operating Profit
$46 $47
$57
$72
$80
$20
$40
$60
$80
$100
2011 2012 2013 2014 2015
SEM Operating Profit
Note: $ in millions, except per share data
PolyOne Corporation Page 24
1.7%
4.6% 5.1% 5.5%
7.2% 8.1%
9.7%
12.2%
16.7%
20%+
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020
Operating Income % of Sales
At a Glance
Color, Additives and Inks
2015 Revenues: $0.8 Billion Solutions
Expanding Profits 2015 Revenue by Industry Segment
14.7%
Platinum
Vision
48%
33%
Building &
Electrical &
1%
31%
Textiles
PolyOne Corporation Page 25
1.1% 1.3%
3.4%
5.1%
9.6%
8.0% 8.6% 9.3%
14.7%
20%+
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020
Operating Income % of Sales
At a Glance
Specialty Engineered Materials
2015 Revenues: $0.5 Billion Solutions
2015 Revenue by Industry Segment Expanding Profits
Platinum
Vision
12.1%
49%
29%
Building &
Electrical &
19%
15%
PolyOne Corporation Page 26
1.4%
5.6%
7.3%
3.0%
12-14%
2012 2013 2014 2015 2020
Operating Income % of Sales
At a Glance
Designed Structures and Solutions
Solutions 2015 Revenues: $0.5 Billion
Expanding Profits 2015 Revenue by Industry Segment
Platinum
Vision
Appliances,
Building &
Construction
Industrial
24%
Packaging
19%
Transportation
33%
97%
PolyOne Corporation Page 27
Building &
31%
Electrical &
1%
5% Transportation
19% Wire & Cable
5.5%
6.9%
3.8% 3.6%
5.5%
4.3%
6.3%
7.2%
8.3%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020
Operating Income % of Sales
At a Glance
Performance Products and Solutions
Solutions
Expanding Profits
2015 Revenues: $0.7 Billion
10-12%
Platinum
Vision
2015 Revenue by Industry Segment
7.7%
79%
PolyOne Corporation Page 28
2.6%
3.0%
3.5%
4.0%
4.6%
5.6%
6.4% 5.9%
6.6% 6.5-7.5%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020
Operating Income % of Sales
15%
53%
2006 Q4 2015
At a Glance
Distribution
Key Suppliers 2015 Revenues: $1.0 Billion
ROIC Expanding Profits
6.1%
Platinum
Vision
Building &
4%Consumer
Electrical &
23%
24%
http://www.polyone.com/Pages/VariationRoot.aspx
PolyOne Corporation Page 29
2 lbs Plastic
=
3 lbs aluminum
or
8 lbs steel
or
27 lbs glass
33% less material by weight
than aluminum
75% less material by weight
than steel
93% less material by weight
than glass
Requires 91% less energy to
recycle a pound of plastic versus
a pound of paper
Source: SPI: Sustainability and the Plastics Industry
Plastics: Key to Future Sustainable Development
PolyOne Corporation Page 30
Application Examples
PolyOne Corporation Page 31
Outdoor Applications
• Leading provider of high performance
specialty materials for the recreational
and sports & leisure industry
• Well positioned across all segments to
address market needs
Metal to Polymer Conversion
Lightweighting
Thermal Management
Impact Performance
Source: Outdoor Industry Association
PolyOne Corporation Page 32
$1.5 billion attractive, growing market
Additives improve performance and reduce cost
through light-weighting, reduced waste, faster
cycle times, and extended shelf life of finished
product
Aligned with megatrend of protecting the
environment:
Sustainability benefits include lower
package weight and improved recyclability
of package at end of use
Market Opportunity
Leading Global Supplier of Additives In Growing PET Market
Shelf-life extension
Greater product
consistency
Recyclability and
reduced carbon
footprint
Color and Special
Effects
Weight reduction
Enhanced product
aesthetics
High heat resistance
PET Bottling Technology
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2014 2019
Asia Pacific North America
Latin America Western Europe
Eastern Europe Middle East and Africa
Global PET Packaging Growth 2009-2019
Source: Euromonitor retail off-trade consumption (PET bottles & jars, home care, personal care,
food & non-alcoholic beverages)
B
ill
io
n
un
its
5% CAGR
PolyOne Corporation Page 33
• Includes formulation and
consultative services to assist
manufacturers and brand owners in
positively identifying their finished
goods
• Protects brand equity & consumer
welfare
• Reduces exposure to unwarranted
recall expenses
• Secures supply chain integrity –
support for safe expansion into new
geographies
Authentication Technology
PolyOne Corporation Page 34
Metal Replacement Solutions
• Replaces metal in LED lighting
• Extends LED durability and life
span eliminating hot spots
• Greater design flexibility with
fewer parts
• Weight reduction
• Simplifies manufacturing and
lowers total production cost
PolyOne Corporation Page 35
• Color harmonization across
15 unique color-and-polymer
combinations
• Eliminated need for multiple pre-
colored materials
• Reduced Land Rover’s working
capital
Range Rover Evoque Interior
PolyOne Corporation Page 36
• Reduced health and
environmental impact
• System cost reduction
• Radiation-shielding
performance
• Parts consolidation
• Design freedom
CT Scanner
PolyOne Corporation Page 37
High-Barrier Packaging Containers
• Capability to extrude up to 13
layers
• Strong oxygen and moisture
vapor transmission protection
• Can be made symmetrical or
asymmetrical to meet
customized needs of broad
variety of applications
• Barrier protection and superior
sensory properties
PolyOne Corporation Page 38
Aerospace Applications
• Leading provider of specialty materials
for the aerospace industry
• Typical applications
Mil-spec aircraft windows, canopies,
windscreens, instrument panels,
wingtip lenses
Interior – gallery furnishings, tray
tables, arm rests, trim strips, joint/edge
coverings
• Benefits:
High impact strength
Resistant to UV rays
Flame and smoke compliance
Easy to clean with aggressive cleaners;
anti-microbial grades available
Range of sizes, thicknesses, colors, etc.
1
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(Dollars in millions, except per share data)
Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with U.S.
Appendix
Recent Acquisitions
2015 Full Year Financial Highlights
At a Glance�Color, Additives and Inks
At a Glance�Specialty Engineered Materials
At a Glance�Designed Structures and Solutions
At a Glance�Performance Products and Solutions
At a Glance�Distribution
Plastics: Key to Future Sustainable Development
Application Examples
Outdoor Applications
Slide Number 32
Authentication Technology
Metal Replacement Solutions
Range Rover Evoque Interior
Slide Number 36
High-Barrier Packaging Containers
Aerospace Applications
Investor Presentation - March 1, 2016 r36
Investor Presentation - March 1, 2016
https://www.avient.com/sites/default/files/2021-04/avient-q4-earnings-and-2021-outlook-website.pdf
Purchase price multiple rapidly
declining on strength of business and
synergy capture
(1) (1) (1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
7
SEM
• Composites and Outdoor High
Performance applications drove
positive mix within SEM
• Clariant Masterbatch synergy
realization under way and
expected to drive further margin
expansion in 2021
• Portfolio transformation to high
growth end markets with focus on
sustainable solutions megatrend
10.1%
11.8%
EBITDA MARGIN EXPANSION
Distribution
6.3% 6.0%
15.2%
17.6%
11.1%
12.1%
14.5%
19.8%
13.5%
16.1%
6.4% 6.3%
15.2% 16.2%
Full YearQ4
(2)
(2) Total company reflects adjusted EBITDA margins
SPOTLIGHT: COMPOSITES
8
• SEM delivers a record year in 2020 – 13%
operating income growth and over 200 bps
in margin expansion year-over-year
• Prior investments in composites platform
and outdoor high performance applications
paying off, resulting in substantial growth
over the last two years
SEM
Operating
Income
(OI % of Sales)
$(0.1) $(1.0)
$2.2
$19.1
$26.8
2016 2017 2018 2019 2020
Composites
Performance
(Operating Income)
$83.7
$94.4
2019 2020
(11.2%)
(13.3%)
0.1 0.1
0.2
0.5
0.6
0.7
0.8
0.9
0.9 1.0
11 12 13 14 15 16 17 18 19 20
$19
$160
$338
2011 2019 2020
0.16
0.20
0.26
0.34
0.42
0.50
0.58
0.72
0.79 0.81
0.85
11 12 13 14 15 16 17 18 19 20 21E
FREE CASH FLOW AND CAPITAL ALLOCATION
9
Free Cash Flow Dividends Share Repurchases Deleveraging
3.5x
2.7x
Growing Dividend Cumulative Buybacks Net Leverage
$B
n
$
p
e
r
sh
ar
e
Cash Generation
~$1Bn
REPURCHASED
OVER LAST 10 YEARS
~$350MM
PAID OVER LAST 10 YEARS
~$338MM 2.7x
NET LEVERAGE
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
GREAT PLACE TO WORK!
That’s Avient.
21,000+
CUSTOMERS
>75%
ARE CUSTOMIZED SOLUTIONS
TO UNIQUE SPECIFICATIONS
of
sales
18
AVIENT’S VALUE CREATION LEVERS
19
Exposure to high growth end markets
Investment in commercial resources and innovation
Strong free cash flow generation / capital deployment
Clariant Masterbatch synergies
COVID recovery
Re-Rating: Current share price valuation
Avient is poised for near-term and long-term
shareholder value creation.
20
• 8% increase in sales drives 24% increase in adjusted EPS to $2.40
($2.70 excluding step-up depreciation and amortization) as a result of
continued growth in sustainable solutions and synergy capture
• Clariant synergy capture ahead of schedule: $35M of savings planned from
Clariant Masterbatch acquisition
• Adjusted EBITDA of $510M – highest level in company history
• Deleveraging ahead of schedule – 2.1x net debt to adjusted EBITDA by the
end of 2021
2021 PROJECTIONS
PEER COMPARISONS
21
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
We will deliver for our stakeholders through multiple value creation levers—many of
which are unique to Avient:
o Demand for sustainable solutions, healthcare, and composites, together with Clariant
Masterbatch revenue synergies, that will drive 2021 revenue growth of 8% and long-term growth
in excess of GDP
o Clariant Masterbatch cost synergy capture will result in significant near-term benefit
In addition, we remain committed to increasing annual dividends in line with earnings growth and
opportunistically buying back shares, all while remaining modestly levered.
https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Earnings Press Release_0.pdf
This will be an important component to
delivering long-term sustainable growth, and I look forward to communicating our detailed
strategy later this year."
About Avient
Avient Corporation (NYSE: AVNT) provides specialized and sustainable materials solutions that
transform customer challenges into opportunities, bringing new products to life for a better
world.
Examples include:
• Dyneema®, the world’s strongest fiber™, enables unmatched levels of performance
and protection for end-use applications, including ballistic personal protection, marine
and sustainable infrastructure and outdoor sports
• Unique technologies that improve the recyclability of products and enable recycled
content to be incorporated, thus advancing a more circular economy
• Light-weighting solutions that replace heavier traditional materials like metal, glass
and wood, which can improve fuel efficiency in all modes of transportation and reduce
carbon footprint
• Sustainable infrastructure solutions that increase energy efficiency, renewable
energy, natural resource conservation and fiber optic / 5G network accessibility
Avient is certified ACC Responsible Care®, a founding member of the Alliance to End Plastic
Waste and certified Great Place to Work®.
https://www.avient.com/news/polyone-announces-record-first-quarter-2014-results
Guided by its Core Values, Sustainability Promise and No Surprises PledgeSM, PolyOne is committed to its customers, employees, communities and shareholders through ethical, sustainable and fiscally responsible principles.
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to: the final amount of charges resulting from the planned North American asset realignment and the Company's ability to realize anticipated savings and operational benefits from the asset realignment; our ability to achieve the strategic and other objectives relating to the acquisition of Spartech Corporation, including any expected synergies; our ability to successfully integrate Spartech and achieve the expected results of the acquisition, including, without limitation, the acquisition being accretive; disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; the financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate liquidity) to maintain their credit availability; the speed and extent of an economic recovery, including the recovery of the housing market; our ability to achieve new business gains; the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks; changes in polymer consumption growth rates where we conduct business; changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online; fluctuations in raw material prices, quality and supply and in energy prices and supply; production outages or material costs associated with scheduled or unscheduled maintenance programs; unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; an inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital reductions, cost reductions and employee productivity goals; an inability to raise or sustain prices for products or services; an inability to maintain appropriate relations with unions and employees; the inability to achieve expected results from our acquisition activities; our ability to continue to pay cash dividends; the amount and timing of repurchases of our common shares, if any; and other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and changes in the rate of inflation.
https://www.avient.com/products/polymer-additives/healthcare-additives
Discover our portfolio of color and additive solutions specially formulated with bio-polymers to increase the sustainability of healthcare products.
Sustainable Formulations
Discover our portfolio of color and additive solutions specially formulated with bio-polymers to increase the sustainability of healthcare products.
https://www.avient.com/products/polymer-additives/barrier-and-scavenger-additives
Sustainable Formulations
Sustainability for a Better Tomorrow
Whether you're a customer, community member, potential employee, or shareholder, we know that sustainability is vitally important to you.