https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Goldman%2520Basic%2520Materials%2520Conference.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 strength and timing of economic recoveries;
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;
Information systems failures and cyber attacks;
An inability to maintain appropriate relations with unions and employees;
Our ability to continue to pay regular cash dividends and the amounts and timing of any future 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
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
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 5
2016 Revenue ($3.3 Billion) by Segment
At a Glance
United
States
65%
Canada
8%
Europe
12%
Asia
8%
Latin
America
7%
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
$2.13
2009 2010 2011 2012 2013 2014 2015 2016
2016 Revenue by Geography
2016 Revenue by End Market
Appliance
5%
Building &
Construction
11%
Industrial
15%
Electrical &
Electronics
5%
Consumer
11%
Healthcare
11% Packaging
12%
Textiles
2%
Transportation
19%
Wire &
Cable
9%
Adjusted Earnings Per Share
Performance
Products &
Solutions
19%
PolyOne
Distribution
31%
Designed
Structures
& Solutions
11% Specialty
Engineered
Materials
16%
Color
Additives
and Inks
23%
6 POLYONE CORPORATION
2%
43%
80%
0%
20%
40%
60%
80%
100%
2005 2010 1Q 2017
%
o
f O
pe
ra
tin
g
In
co
m
e*
*Operating Income excludes corporate charges and special items **LTM 1Q 2017
Specialty OI $5M $87M $274M**
Mix Shift Highlights Specialty Transformation
JV’s Performance Products & Solutions
Specialty Mix Distribution
7 POLYONE CORPORATION
2006 1Q 2017 2020
“Where we were” “Where we are” Platinum Vision
Operating Income % of Sales
Color, Additives & Inks 1.7% 16.6% 20%+
Specialty Engineered Materials 1.1% 14.8% 20%+
Performance Products & Solutions 5.5% 12.0% 12 – 14%
Distribution 2.6% 6.5% 6.5 – 7.5%
Designed Structures & Solutions N/A -3.2% 8 – 10%
ROIC* 5.0% 12.6% 15%
Proof of Performance & 2020 Platinum Vision
*ROIC is defined as TTM adjusted OI after tax divided by the sum of average debt and equity less cash over a 5 quarter period
Consistently Deliver Double Digit Annual EPS Growth
8 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 $900 million to shareholders
$167 million returned through dividends
$731 million returned through share repurchases
*Initiated in 2011
$0
$150
$300
$450
$600
$750
2011 2012 2013 2014 2015 2016 1Q
2017
Cumulative Share Repurchases
(in millions)
$731M
9 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
~60 - 70% of capital
expenditures fund
growth initiatives Organic
Growth
Acquisitions
Share
Repurchases
Dividends Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Growth synergies
Adjacent material
solutions
Repurchased 1.0
million shares in Q1
2017
Repurchased 19.8
million shares since
early 2013
7.5 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
POLYONE CORPORATION 10
2,883
2,538
2006 2016
Volume
(lbs in millions)
-12%
$103
$200
2006 2016
Commercial, R&D
and Marketing
Spending ($M)
+95%
$88
$317
2006 2016
Adjusted
Operating Profit ($M)
+263%
Ours is Not a Cost Cutting Story
11 POLYONE CORPORATION
Primary Industries Served
2016 Revenue: $3.3 Billion
Appliance
5%
Electrical &
Electronic
5%
Building &
Construction
11%
Industrial
15%
Wire & Cable
9%
Healthcare
11%
Consumer
11%
Packaging
12%
Transportation
19%
Focus End Markets
12 POLYONE CORPORATION
Innovation Drives Earnings Growth
*Specialty Platform revenue from products introduced in last five years
$20
$54
2006 2016
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
33%
2006 2016
CAI & SEM
Gross Margin
12%
42%
2006 2016
Target ≥ 35%
Innovation Pipeline Potential
POLYONE CORPORATION 13
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
Addressable market exceeds $40 billion
Strong performance demonstrates that our strategy and execution
are working
Megatrends and emerging opportunities align with strengths
Innovation and services provide differentiation, incremental pricing
power and competitive advantage
Strategic balance between reinvestment for growth and returning
cash to shareholders
Strong and proven management team driving growth and
performance
14 POLYONE CORPORATION
Segment Highlights
POLYONE CORPORATION 15
2016 Revenue: $0.8 Billion
At a Glance: Color, Additives & Inks
Key Applications
2016 Revenue by Industry Expanding Profits
1.7%
4.6% 5.1%
5.5%
7.2% 8.1%
9.7%
12.2%
14.7%
16.7%
16.0%
20%+
16.6%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q
2017
2020
Operating Income % of Sales
United
States
45%
Europe
33%
Asia
15% Latin
America
5%
Canada
2%
Packaging
30%
Industrial
15%
W & C
10%
B & C
10% Textiles
9%
Transportation
9%
Consumer
7%
Healthcare
6%
Appliance
2%
E & E
2%
Platinum
Vision
POLYONE CORPORATION 16
2016 Revenue: $0.6 Billion
At a Glance: Specialty Engineered Materials
2016 Revenue by Industry Expanding Profits
1.1% 1.3%
3.4%
5.1%
9.6%
8.0% 8.6%
9.3%
12.1%
14.7%
14.3%
20%+
14.8%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q
2017
2020
Operating Income % of Sales
Consumer
19% Transportation
19%
E & E
15%
W & C
15%
Healthcare
11%
Industrial
8%
Packaging
7%
Appliance
3%
B & C
3%
United
States
51%
Europe
27%
Asia
20%
Canada
2%
Key Applications
Platinum
Vision
POLYONE CORPORATION 17
2016 Revenue: $0.4 Billion
At a Glance: Designed Structures & Solutions
2016 Revenue by Industry 2020 Platinum Vision
Transportation
27%
Industrial
21%
Packaging
21%
B & C
11% Healthcare
8%
Consumer
8%
Appliance
3%
E & E
1%
Key Applications
United
States
95%
Canada
5%
Drive operational efficiency with LSS
projects and customer first mentality
Recapture customers by leveraging
PolyOne’s commercial excellence and
service offerings
2020 Operating Margin: 8 – 10%
http://www.google.com/url?
https://www.avient.com/sites/default/files/2024-08/Silcopas Airbags Case Study Snapshot.pdf
TEXTILE
MA NUFAC TURER
A U T O M O T I V E A I R B A G C O A T E D
F A B R I C
• Rapid development of color-coated, high-performance
fabric for global OEM airbag system
• Custom-colored silicone paste dispersion for liquid silicone
rubber (LSR)
• Excellent dispersion with color consistency to meet
regulatory demands and monitor coating performance
• Offered specialized customer support to
provide materials quickly while working with
all stakeholders
• Provided customizable color-matching
helping to reinforce brand equity
• Delivered exceptional quality and regulatory
knowledge to adhere to industry safety
standards and track internal performance
Silcopas Silicone Paste Colorants
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2021-10/bergamid-house-of-sports-gun-case-study-one-pager-1020.pdf
U TG ® H U N T I N G &
S H O OT I N G S P O RT S
G U N M A G A Z I N E H O U S I N G
• Good dimension stability with low warpage at different
temperature ranges (70˚C, room temperature, -40˚C)
• Good appearance with less glass fiber exposure
• Provided durable and impact-resistant glass
fiber reinforced formulation with excellent
surface finish and good dimensional stability
for smooth operation
• Passed all temperature durability and drop tests
to confirm use in outdoor environments
• Collaborated with customer via technology
services to accelerate product development
Bergamid™ Customized Polyamide
Formulation
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2020-07/case-study-one-pager-therma-tech-gas-recovery-heat-exchanger.pdf
© 2019, All Right Reserved
Avient Corporation, 33587 Walker Road, Avon Lake, Ohio USA 44012
B U I L D I N G A N D
C O N S T R U C T I O N S U P P L I E R
H E A T E X C H A N G E R : G A S
R E C O V E R Y
• Resistance to corrosion and fouling
• Good thermal conductivity
• Good pressure resistance
• Compatible with current processing methods – extrusion
• Eliminated the effects of corrosion and
fouling by replacing aluminum
• Improved thermal performance over time
• Developed a customized solution that
utilized the customers existing extrusion
processing methods
Therma-Tech™ Thermally Conductive Formulation
KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2022-07/ECCOH_ 5806 - Gel filled Tight Buffer Aerial Cable - Application Snapshot.pdf
T I G H T B U F F E R I N G E L - F I L L E D
L O O S E T U B E F O R A E R I A L
C A B L E S
GLOBAL CABLE
MANUFACTURER
• Operating temperature from -40°C to 70°C
• High gel resistance
• Low shrinkage
• Stripability for easy installation
• Good flame retardancy
• Developed a formulation with good thermal behaviour
and low shrinkage
• Enabled a greater range of operating temperatures
giving the customer the flexibility of using the same
cable design in a range of different climates
• Provided superior gel resistance increasing life time of
the cable
• Utilized simulation service to optimize customer tooling
and extrusion output
ECCOH™ 5806 Formulation
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2021-04/edgetek-nylon-power-tool-case-study-one-pager.pdf
POWER TOOL
MANUFACTURER
P I S T O N R I N G A N D
C O N N E C T I N G R O D F O R
P O W E R T O O L
• Exceptional mechanical properties
• Good wear and abrasion resistance
• High purity and light weight
• Worked directly with the manufacturer from
design to molding to better understand and
satisfy key requirements
• Improved strength, stiffness and stability
with one-stop technology service to best
meet customer’s needs
• Provided lightweighting solution to help
customer achieve its sustainability goal
Edgetek™ PK PEEK Formulation
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2022-05/Glucose Monitoring App Snapshot.pdf
Glucose Monitoring App Snapshot draft
M E D I C A L D E V I C E O E M
C O N T I N U O U S G L U C O S E
M O N I T O R I N G S Y S T E M
• Adapt to strict processing requirements of a secondary
operation put in place to manufacture a new device model
• Meet material size and thickness requirements while
achieving desired color target
• Overcome material unpredictability and sensitivity to heat,
light and moisture
• Minimize impact of supply chain instability and changes
• Offered support for processing under low
pressure conditions and at every stage of
manufacturing
• Performed extensive R&D work to
consistently deliver the customer’s color
target of a hard-to-achieve light gray
• Effectively addressed all material challenges
and sensitivities
• Provided regular ‘summaries of
understanding’ to keep up with changing
forecasts and ordering patterns
Mevopur™ Pre-color Formulation
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/products/polymer-colorants/solid-color-masterbatches/mevopur-custom-colors-and-formulations
https://www.avient.com/sites/default/files/2021-07/mevopur-needle-hub-1-page-case-study.pdf
NEEDLE HUB
MANUFACTURER
N E E D L E H U B C O L O R S
• RAL and Pantone® colors available in palette to align with
ISO 6009 color standard
• Opaque and transparent polypropylene selections
available in both masterbatch and ready-to-use precolors
• Raw materials pre-tested to ISO 10993 and USP Class VI
medical device guidelines
• Certified formulations available globally
• Provided RAL and Pantone colors as
required
• Developed custom polypropylene
formulations to meet specific opacities
• Offered pre-tested raw materials and
produced in an ISO 13485 certified site,
minimizing risk across the value chain
• Provided global formulations transferrable
from our three ISO 13485 certified facilities
Mevopur™ Healthcare Colors
KEY REQUIREMENTS
WHY AVIENT?
AVIENT SOLUTION
COLOR + CERTIFICATION
LEARN MORE
© 2021, Avient Corporation, All Rights Reserved
https://www.avient.com/products/polymer-colorants/solid-color-masterbatches/mevopur-custom-colors-and-formulations
https://www.avient.com/sites/default/files/2022-05/Application Snapshot NIR _ REJOIN Final.pdf
Application Snapshot NIR _ REJOIN Final
COSMETICS
BRAND
P E R S O N A L C A R E & C O S M E T I C S
P A C K A G I N G
• Excellent color performance in PCR resin
• Combinable with functional additives
• Parts manufactured with 100% PCR
• Worked with customer to create circular
packaging options with glamorous and striking
special effects
• Provided a solution that enabled added shine,
ensuring the customer achieved beautiful
packaging without compromising NIR detectability
• Ensured the solution was available for many
cosmetics packaging types, including bottles,
make-up and caps
OnColor™ NIR Black & Dark Sortable
Colorants & Rejoin™ PCR Masterbatch for
Polyolefins
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2021-06/avient-design-versaflex-wet-grip-tpe-fishing-tool-grip-case-study-one-pager.pdf
OUTDOOR GEAR
MAKER
F I S H I N G T O O L G R I P
• Aesthetically differentiate new products while optimizing
user functionality and safety
• Meet weatherability performance required by industry
standard UV and Salt Water Exposure tests
• Resist fish oils, sunscreens, and cleaners
• Comply with FDA food contact requirements
• Provided product development support from
concept to production, including visual brand
integration, part design, and material selection
• Customized grip design and TPE formulation to
retain grip and tactile feel in wet and oily
environments
• Expedited lead time with advanced design and 3D
modeling services to enable product launch at key
industry tradeshow
• Offered global supply continuity with local technical
and manufacturing support
Custom Versaflex™ Wet Grip TPE and Avient
Design Services
KEY REQUIREMENTS
WHY AVIENT?