https://www.avient.com/news/polyone-announces-second-quarter-2014-results
Global Color, Additives and Inks
Global Color, Additives and Inks
Global Color, Additives and Inks
https://www.avient.com/news/polyone-announces-strong-third-quarter-2014-results
Global Color, Additives and Inks
Global Color, Additives and Inks
Global Color, Additives and Inks
https://www.avient.com/products/polymer-additives/laser-marking-additives
Screen Printing Inks
Printing and Marking Inks
Cesa™ Mix Additives
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Credit%2520Suisse%2520-%2520June%25202015.pdf
PolyOne Corporation Page 4 PolyOne Commodity to Specialty Transformation • Volume driven, commodity producer • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures 2000-2005 2006 - 2009 2010 – 2014 2015 and beyond • Steve Newlin appointed, Chairman, President and CEO • New leadership team appointed • Implementation of four pillar strategy • Focus on value based selling, investment in commercial resources and innovation to drive transformation • Substantial EPS growth from $0.13 to all-time high of $1.80 • Shift to faster growing, high margin, less cyclical end markets • Key acquisitions propel current and future growth, as well as margin expansion • Specialty mix expands to 65% of Operating Income – strongest mix of earnings in history • Accelerating growth • Deliver consistent double digit annual EPS growth • Maintain >35% vitality index • Pursue strategic acquisitions that expand specialty offerings and geographic breadth • Invest and grow current and next generation talent PolyOne Corporation Page 5 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 $13 $31 $46 $46 $87 $96 $122 $195 $242 2006 2007 2008 2009 2010 2011 2012 2013 2014 Specialty Operating Income ($M) PolyOne Corporation Page 6 Old PolyOne *Operating Income excludes corporate charges and special items 2% 34% 43% 62% 65% 69% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2013 2014 Q1 2015 2020 % o f O pe ra tin g In co m e* JV's Performance Products & Solutions Distribution Specialty 80%+ Specialty OI $5M $46M $87M $195M $242M $60M Mix Shift Highlights Specialty Transformation Transformation 2020 Platinum Vision Platinum Vision PolyOne Corporation Page 7 Confirmation of Our Strategy The World’s Premier Provider of Specialized Polymer Materials, Services and Solutions Specialization Globalization Operational Excellence Commercial Excellence PolyOne Corporation Page 8 -100% 0% 100% 200% 300% 400% 500% 600% Strategy and Execution Drive Results $0.12 $0.27 $0.21 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 '06 '07 '08 '09 '10 '11 '12 '13 '14 ‘06-‘14 Adjusted EPS CAGR = 40% Adjusted EPS Share Price vs.
Platform operating income mix percentage 2005* 2006* 2007* 2008* 2009* 2010* 2011 2012 2013 2014 2015 Q1 Global Color, Additives and Inks $ 4.3 $ 8.9 $ 25.7 $ 28.1 $ 25.2 $ 37.7 $ 50.2 $ 75.3 $ 104.0 $ 124.9 $ 33.8 Global Specialty Engineered Materials 0.4 3.9 4.9 17.6 20.6 49.7 45.9 47.0 57.2 72.4 23.1 Designed Structures and Solutions - - - - - - - - 33.4 45.1 3.2 Specialty Platform $ 4.7 $ 12.8 $ 30.6 $ 45.7 $ 45.8 $ 87.4 $ 96.1 $ 122.3 $ 194.6 $ 242.4 $ 60.1 Performance Products and Solutions 75.7 64.2 65.8 31.3 33.1 54.0 27.7 38.8 56.0 63.1 11.5 Distribution 19.5 19.2 22.1 28.1 24.8 42.0 56.0 66.0 63.3 68.2 15.7 Joint ventures 91.9 102.9 34.8 28.6 25.5 18.9 5.0 - - - - Corporate and eliminations (51.5) 34.5 (73.3) (425.1) 7.9 (27.7) 18.2 (89.6) (82.4) (218.6) (17.2) Operating income (loss) GAAP $ 140.3 $ 233.6 $ 80.0 $ (291.4) $ 137.1 $ 174.6 $ 203.0 $ 137.5 $ 231.5 $ 155.1 $ 70.1 Less: Corporate operating expense 51.5 (34.5) 73.3 425.1 (7.9) 27.7 (18.2) 89.6 82.4 218.6 17.2 Operating income excluding Corporate $ 191.8 $ 199.1 $ 153.3 $ 133.7 $ 129.2 $ 202.3 $ 184.8 $ 227.1 $ 313.9 $ 373.7 $ 87.3 Specialty platform operating mix percentage 2% 6% 20% 34% 35% 43% 52% 54% 62% 65% 69% * Historical results have not been restated for the Resin business divestiture or the related resegmentation. 2 Adjusted EPS 2006Y* 2007Y* 2008Y* 2009Y* 2010Y 2011Y 2012Y 2013Y 2014Y Net income attributable to PolyOne common shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 Joint venture equity earnings, after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) - - - Special items, after tax(1) (21.2) 41.4 310.0 (31.0) 15.8 (30.5) 35.7 30.4 101.0 Tax adjustments(2) (30.0) (30.7) 147.2 (44.9) (88.3) (42.3) 0.5 2.2 (10.5) Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8 96.5 93.5 Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 Adjusted EPS 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 Net income attributable to PolyOne common shareholders $ 20.1 $ 106.0 $ 15.3 $ 11.2 $ 29.4 $ 30.2 Joint venture equity earnings, after tax (0.5) (3.7) - - - - Special items, after tax(1) (0.3) (79.8) 6.1 17.2 14.1 5.5 Tax adjustments(2) (3.5) (1.5) 0.1 0.5 (1.6) 5.9 Adjusted net income $ 15.8 $ 21.0 $ 21.5 $ 28.9 $ 41.9 $ 41.6 Diluted shares 95.3 96.4 90.7 92.8 95.7 90.1 Adjusted EPS $ 0.17 $ 0.22 $ 0.24 $ 0.31 $ 0.44 $ 0.46 * Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principal or discontinued operations. (1) Special items are a non-GAAP financial measure.
Appendix Q1 2015 Financial Highlights At a Glance�Global Color, Additives and Inks At a Glance�Global 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 Commitment to Operational Excellence Application Examples Slide Number 28 Authentication Technology 2015 Range Rover Evoque Interior Slide Number 31 Metal Replacement Solutions Next Generation Solar Charger High-Barrier Packaging Containers Aerospace Applications Credit Suisse - June 25 2015 r2 Credit Suisse - June 25 2015
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520RW%2520Baird%25202015%2520Industrial%2520Conference%2520-%2520November%25202015.pdf
PolyOne Corporation Page 4 PolyOne Commodity to Specialty Transformation • Volume driven, commodity producer • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures 2000-2005 2006 - 2009 2010 – 2014 2015 and beyond • Steve Newlin appointed, Chairman, President and CEO • New leadership team appointed • Implementation of four pillar strategy • Focus on value based selling, investment in commercial resources and innovation to drive transformation • Substantial EPS growth from $0.13 to all-time high of $1.80 • Shift to faster growing, high margin, less cyclical end markets • Key acquisitions propel current and future growth, as well as margin expansion • Specialty mix expands to 65% of Operating Income – strongest mix of earnings in history • Accelerating growth • Deliver consistent double digit annual EPS growth • Maintain >35% vitality index • Pursue strategic acquisitions that expand specialty offerings and geographic breadth • Invest and grow current and next generation talent PolyOne Corporation Page 5 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?
Platform operating income mix percentage 2005* 2008* 2010* 2013 2014 2015 YTD Global Color, Additives and Inks $ 4.3 $ 28.1 $ 37.7 $104.0 $124.9 $ 107.9 Global Specialty Engineered Materials 0.4 17.6 49.7 57.2 72.4 63.2 Designed Structures and Solutions - - - 33.4 45.1 12.0 Specialty Platform $ 4.7 $ 45.7 $ 87.4 $194.6 $242.4 $ 183.1 Performance Products and Solutions 75.7 31.3 54.0 56.0 63.1 43.9 Distribution 19.5 28.1 42.0 63.3 68.2 52.4 Joint ventures 91.9 28.6 18.9 - - — Corporate and eliminations (51.5) (425.1) (27.7) (82.4) (218.6) (59.8) Operating income (loss) GAAP $140.3 $(291.4) $174.6 $231.5 $155.1 $ 219.6 Less: Corporate operating expense 51.5 425.1 27.7 82.4 218.6 59.8 Operating income excluding Corporate $191.8 $133.7 $202.3 $313.9 $373.7 $ 279.4 Specialty platform operating mix percentage 2% 34% 43% 62% 65% 66% Adjusted EPS is calculated as follows: Adjusted EPS 2006Y* 2007Y* 2008Y* 2009Y* 2010Y 2011Y 2012Y 2013Y 2014Y Net income attributable to PolyOne common shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 Joint venture equity earnings, after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) - - - Special items, after tax(1) (21.2) 41.4 310.0 (31.0) 15.8 (30.5) 35.7 30.4 101.0 Tax adjustments(2) (30.0) (30.7) 147.2 (44.9) (88.3) (42.3) 0.5 2.2 (10.5) Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8 96.5 93.5 Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 2 Adjusted EPS 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 Net income attributable to PolyOne common shareholders $ 16.0 $ 19.4 $ 23.2 $ 32.3 $ 44.5 Special items, after tax(1) 3.1 5.3 10.5 13.2 12.6 Tax adjustments(2) (0.3) 0.1 1.8 (0.1) (9.6) Adjusted net income $ 18.8 $ 24.8 $ 35.5 $ 45.4 $ 47.5 Diluted shares 94.3 90.2 98.1 93.1 88.4 Adjusted EPS $ 0.20 $ 0.27 $ 0.36 $ 0.49 $ 0.54 * Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principal or discontinued operations. (1) Special items are a non-GAAP financial measure and are used to determine adjusted earnings.
Appendix Q3 2015 Financial Highlights At a Glance�Global Color, Additives and Inks At a Glance�Global 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 Commitment to Operational Excellence Application Examples Outdoor Applications Slide Number 28 Authentication Technology 2015 Range Rover Evoque Interior Slide Number 31 Metal Replacement Solutions High-Barrier Packaging Containers Aerospace Applications Baird Non GAAP Rec.pdf Baird - November 10, 2015
https://www.avient.com/knowledge-base/article/how-use-color-and-texture-boost-vehicle-interior-appeal
With the right mix of advanced textiles and specialty polymer surfaces, for example, a designer can boost the sensory appeal of a vehicle’s interior so that it attracts multiple senses.
Disparate colors: Mixing the colors of textiles in a car’s interior can stretch its appeal to new audiences.
Appearance is not the only reason to consider mixing up a color scheme.
https://www.avient.com/investor-center/news/polyone-announces-appointment-woon-keat-moh-president-color-additives-and-inks
NYSE: POL), a premier provider of specialized polymer materials, services and solutions, has announced that Woon Keat Moh ("Moh") has been appointed to the position of President of Color, Additives and Inks, effective
I'm extremely proud to lead our innovative, global team of associates in the dynamic and diverse markets we serve with our colors, additives and inks," said Mr.
View original content:http://www.prnewswire.com/news-releases/polyone-announces-appointment-of-woon-keat-moh-to-president-of-color-additives-and-inks-300954301.html
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520RW%2520Baird%2520Conference%2520w%2520non-GAAP.pdf
PolyOne Corporation Page 4 PolyOne Commodity to Specialty Transformation • Volume driven, commodity producer • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures 2000-2005 2006 - 2009 2010 – 2014 2015 and beyond • Steve Newlin appointed, Chairman, President and CEO • New leadership team appointed • Implementation of four pillar strategy • Focus on value based selling, investment in commercial resources and innovation to drive transformation • 20 consecutive quarters of double- digit adjusted EPS growth • Shift to faster growing, high margin, less cyclical end markets • Key acquisitions propel current and future growth, as well as margin expansion • Established aggressive 2015 targets • Continue specialty transformation • Goal of $2.50 adjusted EPS by 2015, three times the EPS generated in 2011 of $0.82 • Drive double digit operating income and adjusted EPS growth PolyOne Corporation Page 5 Building & Construction 13% Industrial 12% Transportation 18% Wire & Cable 9% Packaging 16% Consumer 10% HealthCare 11% Appliance 6% Electronics & Electrical 5% 2013 Revenues: $3.8 Billion End Markets 2013 Revenues: $3.8 Billion PolyOne At A Glance United States 67% Europe 14% Canada 7% Asia 6% Latin America 6% Specialty 54% PP&S 18% Distribution 28% $13 $31 $46 $46 $92 $96 $122 $195 $0 $50 $100 $150 $200 2006 2007 2008 2009 2010 2011 2012 2013 Specialty Operating Income PolyOne Corporation Page 6 Old PolyOne *Operating Income excludes corporate charges and special items 2% 34% 43% 62% 65% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2013 2014 YTD 2015 % o f O p e ra ti n g I n c o m e * JV's Performance Products & Solutions Distribution Specialty 65-75% Specialty OI $5M $46M $87M $195M $191M Target Mix Shift Highlights Specialty Transformation Transformation 2015 Target PolyOne Corporation Page 7 Confirmation of Our Strategy The World’s Premier Provider of Specialized Polymer Materials, Services and Solutions Specialization Globalization Operational Excellence Commercial Excellence PolyOne Corporation Page 8 Strategy and Execution Drive Results $0.12 $0.27 $0.21 $0.13 $0.68 $0.82 $1.00 $1.31 '06 '07 '08 '09 '10 '11 '12 '13 ‘06-‘13 EPS CAGR = 41% EPS Share Price vs.
S&P 500 -150% -50% 50% 150% 250% 350% 450% 550% POL S&P 500 All time high of $43.34 July 1st, 2014 PolyOne Corporation Page 9 2006 2014 YTD 2015 “Where we were” “Where we are” Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 14.9% 12 – 16% Global Specialty Engineered Materials 1.1% 12.1% 12 – 16% Designed Structures & Solutions -- 7.6% 8 – 10% Performance Products & Solutions 5.5% 8.1% 9 – 12% Distribution 2.6% 6.2% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 65% 65 – 75% 3) ROIC* 5.0% 10.6% 15% 4) Adjusted EPS Growth N/A 37% Double Digit Expansion Proof of Performance & 2015 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 32% Adjusted EPS CAGR from 2011 2015 EPS: $2.50 2011 EPS: $0.82 Continued Gross Margin Expansion Mergers & Acquisitions Spartech Accretion Incremental Share Buybacks Ongoing LSS Programs (50-100 bps/yr) Accelerated Innovation & Mix Improvement Several Levers to Drive Growth Mid Single Digit Revenue Growth PolyOne Corporation Page 11 Innovation Drives Earnings Growth *Percentage of Specialty Platform revenue from products introduced in last five years $20 $53 2006 2013 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 31% 2006 2013 Specialty Platform Gross Margin % 20% 43% 2006 2013 Specialty Vitality Index Target ≥ 35% Vitality Products + 700 to 1000 bps PolyOne Corporation Page 12 Prototype Frame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 4 11 5 10 6 9 3 4 2 15 9 1 10 4 Breakthrough Platform Derivative A Rich Pipeline of Opportunity Number of Projects 25 14 19 17 18 93 Addressable Market ($ millions) TBD TBD $800 $450 $450 $1,700 PolyOne Corporation Page 13 Megatrends Aligned with Key End Markets Decreasing Dependence on Fossil Fuels Protecting the Environment Improving Health and Wellness Megatrend End Markets Globalizing and Localizing Health & Wellness Transportation Packaging Consumer PolyOne Corporation Page 14 60% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2014 Pension Funding** As of September 30, 2014 Debt Maturities & Pension Funding – 9/30/14 Net Debt / EBITDA* = 1.7x $48 $317 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Debt Maturities As of September 30, 2014 ($ millions) Coupon Rates: 7.500% 7.375% 5.250% ** includes US-qualified pension plans only *TTM 9/30/2014 PolyOne Corporation Page 15 Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return Expanding our sales, marketing, and technical capabilities Targets that expand our: • Specialty offerings • End market presence • Geographic footprint • Operating Margin Synergy opportunities Adjacent material solutions Repurchased 1.5 million shares in Q3 2014 Repurchased 9.7 million shares since early 2013 10.3 million shares are available for repurchase under the current authorization Organic Growth Acquisitions Share Repurchases Dividends Investing in operational and LSS initiatives (including synergy capture) Manufacturing alignment $0.16 $0.20 $0.24 $0.32 $0.40 $0.10 $0.20 $0.30 $0.40 $0.50 2011 2012 2013 2014 2015 Annual Dividend PolyOne Corporation Page 16 PolyOne Core Values Innovation Collaboration Excellence PolyOne Corporation Page 17 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
Platform operating income mix percentage 2005Y* 2008Y* 2010Y* 2013Y Q3 2014 YTD Global Color, Additives and Inks $ 4.3 $ 28.1 $ 37.7 $ 104.0 $ 98.2 Global Specialty Engineered Materials 0.4 17.6 49.7 57.2 55.6 Designed Structures and Solutions - - - 33.4 37.2 Specialty Platform $ 4.7 $ 45.7 $ 87.4 $ 194.6 $ 191.0 Performance Products and Solutions 75.7 31.3 54.0 56.0 51.4 Distribution 19.5 28.1 42.0 63.3 53.2 Joint ventures 91.9 28.6 18.9 - - Corporate and eliminations (51.5) (425.1) (27.7) (82.4) (126.2) Operating income (loss) GAAP $ 140.3 $ (291.4) $ 174.6 $ 231.5 $ 169.4 Less: Corporate operating expense 51.5 425.1 27.7 82.4 126.2 Operating income excluding Corporate $ 191.8 $ 133.7 $ 202.3 $ 313.9 $ 295.6 Specialty platform operating mix percentage 2% 34% 43% 62% 65% * Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Credit%2520Suisse%2520Conference%2520w%2520non-GAAP%252009%252018%25202014.pdf
PolyOne Corporation Page 4 PolyOne Commodity to Specialty Transformation • Volume driven, commodity producer • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures 2000-2005 2006 - 2009 2010 – 2014 2015 and beyond • Steve Newlin appointed, Chairman, President and CEO • New leadership team appointed • Implementation of four pillar strategy • Focus on value based selling, investment in commercial resources and innovation to drive transformation • 19 consecutive quarters of double- digit adjusted EPS growth • Shift to faster growing, high margin, less cyclical end markets • Key acquisitions propel current and future growth, as well as margin expansion • Established aggressive 2015 targets • Continue specialty transformation • Goal of $2.50 Adjusted EPS by 2015, nearly double 2013 EPS • Drive double digit operating income and adjusted EPS growth PolyOne Corporation Page 5 Building & Construction 13% Industrial 12% Transportation 18% Wire & Cable 9% Packaging 16% Consumer 10% HealthCare 11% Appliance 6% Electronics & Electrical 5% 2013 Revenues: $3.8 Billion End Markets 2013 Revenues: $3.8 Billion PolyOne At A Glance United States 67% Europe 14% Canada 7% Asia 6% Latin America 6% Specialty 54% PP&S 18% Distribution 28% $13 $31 $46 $46 $92 $96 $122 $195 $0 $50 $100 $150 $200 2006 2007 2008 2009 2010 2011 2012 2013 Specialty Operating Income PolyOne Corporation Page 6 Old PolyOne Transformation *Operating Income excludes corporate charges and special items 2% 34% 43% 62% 66% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2013 2014 YTD 2015 % o f O p e ra ti n g I n c o m e * JV's Performance Products & Solutions Distribution Specialty 65-75% Specialty OI $5M $46M $87M $195M $129M Target Mix Shift Highlights Specialty Transformation 2015 Target PolyOne Corporation Page 7 Confirmation of Our Strategy The World’s Premier Provider of Specialized Polymer Materials, Services and Solutions Specialization Globalization Operational Excellence Commercial Excellence PolyOne Corporation Page 8 Strategy and Execution Drive Results $0.12 $0.27 $0.21 $0.13 $0.68 $0.82 $1.00 $1.31 '06 '07 '08 '09 '10 '11 '12 '13 ‘06-‘13 EPS CAGR = 41% EPS Share Price vs.
S&P 500 -150% -50% 50% 150% 250% 350% 450% 550% POL S&P 500 All time high of $43.34 July 1st, 2014 PolyOne Corporation Page 9 2006 2014 YTD 2015 “Where we were” “Where we are” Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 15.2% 12 – 16% Global Specialty Engineered Materials 1.1% 11.8% 12 – 16% Designed Structures & Solutions -- 7.1% 8 – 10% Performance Products & Solutions 5.5% 8.0% 9 – 12% Distribution 2.6% 6.0% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 66% 65 – 75% 3) ROIC* 5.0% 9.9% 15% 4) Adjusted EPS Growth N/A 40% Double Digit Expansion Proof of Performance & 2015 Goals *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period (Est. in 2012) PolyOne Corporation Page 10 Bridge to $2.50 Adjusted EPS by 2015 2015 EPS: $2.50 2013 EPS: $1.31 Continued Gross Margin Expansion Mergers & Acquisitions Spartech Accretion Incremental Share Buybacks Ongoing LSS Programs (50-100 bps/yr) Accelerated Innovation & Mix Improvement Several Levers to Drive Growth Mid Single Digit Revenue CAGR PolyOne Corporation Page 11 Innovation Drives Earnings Growth *Percentage of Specialty Platform revenue from products introduced in last five years $20 $53 2006 2013 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14.3% 30.7% 2006 2013 Specialty Platform Gross Margin % 19.5% 43.0% 2006 2013 Specialty Vitality Index Target ≥ 35% PolyOne Corporation Page 12 Prototype Frame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 4 11 5 10 6 9 3 4 2 15 9 1 10 4 Breakthrough Platform Derivative A Rich Pipeline of Opportunity* Number of Projects 25 14 19 17 18 93 Addressable Market ($ millions) TBD TBD $800 $450 $450 $1,700 *Pipeline as of May 29, 2014 as presented during our Innovation Day PolyOne Corporation Page 13 Megatrends Aligned with Key End Markets Decreasing Dependence on Fossil Fuels Protecting the Environment Improving Health and Wellness Megatrend End Markets Globalizing and Localizing Health & Wellness Transportation Packaging Consumer PolyOne Corporation Page 14 60% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2014 Pension Funding** As of June 30, 2014 Debt Maturities & Pension Funding – 6/30/14 Net Debt / EBITDA* = 1.8x $48 $317 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Debt Maturities As of June 30, 2014 ($ millions) Coupon Rates: 7.500% 7.375% 5.250% ** includes US-qualified pension plans only *TTM 6/30/2014 PolyOne Corporation Page 15 Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return $0.16 $0.20 $0.24 $0.32 $0.10 $0.20 $0.30 $0.40 2011 2012 2013 2014 Annual Dividend Expanding our sales, marketing, and technical capabilities Targets that expand our: • Specialty offerings • End market presence • Geographic footprint • Operating Margin Synergy opportunities Adjacent material solutions Repurchased 1.8 million shares in Q2 2014 Repurchased 8.2 million shares since early 2013 11.8 million shares are available for repurchase under the current authorization Organic Growth Acquisitions Share Repurchases Dividends Investing in operational and LSS initiatives (including synergy capture) Manufacturing alignment PolyOne Corporation Page 16 PolyOne Core Values Innovation Collaboration Excellence PolyOne Corporation Page 17 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
Platform operating income mix percentage 2005Y* 2008Y* 2010Y* 2013Y 2014 Q2 Global Color, Additives and Inks $ 4.3 $ 28.1 $ 37.7 $ 104.0 $ 68.1 Global Specialty Engineered Materials 0.4 17.6 49.7 57.2 37.2 Designed Structures and Solutions - - - 33.4 24.1 Specialty Platform $ 4.7 $ 45.7 $ 87.4 $ 194.6 $ 129.4 Performance Products and Solutions 75.7 31.3 54.0 56.0 33.6 Distribution 19.5 28.1 42.0 63.3 34.5 Joint ventures 91.9 28.6 18.9 - - Corporate and eliminations (51.5) (425.1) (27.7) (82.4) (91.7) Operating income (loss) GAAP $ 140.3 $ (291.4) $ 174.6 $ 231.5 $ 105.8 Less: Corporate operating expense 51.5 425.1 27.7 82.4 91.7 Operating income excluding Corporate $ 191.8 $ 133.7 $ 202.3 $ 313.9 $ 197.5 Specialty platform operating mix percentage 2% 34% 43% 62% 66% * Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520KeyBanc%2520Conference%2520w%2520nonGAAP.pdf
PolyOne Corporation Page 4 PolyOne Commodity to Specialty Transformation • Volume driven, commodity producer • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures 2000-2005 2006 - 2009 2010 – 2014 2015 and beyond • Steve Newlin appointed, Chairman, President and CEO • New leadership team appointed • Implementation of four pillar strategy • Focus on value based selling, investment in commercial resources and innovation to drive transformation • 19 consecutive quarters of double- digit adjusted EPS growth • Shift to faster growing, high margin, less cyclical end markets • Key acquisitions propel current and future growth, as well as margin expansion • Established aggressive 2015 targets • Continue specialty transformation • Goal of $2.50 Adjusted EPS by 2015, nearly double 2013 EPS • Drive double digit operating income and adjusted EPS growth PolyOne Corporation Page 5 Building & Construction 13% Industrial 12% Transportation 18% Wire & Cable 9% Packaging 16% Consumer 10% HealthCare 11% Appliance 6% Electronics & Electrical 5% 2013 Revenues: $3.8 Billion End Markets 2013 Revenues: $3.8 Billion PolyOne At A Glance United States 67% Europe 14% Canada 7% Asia 6% Latin America 6% Specialty 54% PP&S 18% Distribution 28% $13 $31 $46 $46 $92 $96 $122 $195 $0 $50 $100 $150 $200 2006 2007 2008 2009 2010 2011 2012 2013 Specialty Operating Income PolyOne Corporation Page 6 Old PolyOne Transformation *Operating Income excludes corporate charges and special items 2% 34% 43% 62% 66% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2013 2014 YTD 2015 % o f O p e ra ti n g I n c o m e * JV's Performance Products & Solutions Distribution Specialty 65-75% Specialty OI $5M $46M $87M $195M $129M Target Mix Shift Highlights Specialty Transformation 2015 Target PolyOne Corporation Page 7 Confirmation of Our Strategy The World’s Premier Provider of Specialized Polymer Materials, Services and Solutions Specialization Globalization Operational Excellence Commercial Excellence PolyOne Corporation Page 8 Strategy and Execution Drive Results $0.12 $0.27 $0.21 $0.13 $0.68 $0.82 $1.00 $1.31 '06 '07 '08 '09 '10 '11 '12 '13 ‘06-‘13 EPS CAGR = 41% EPS Share Price vs.
S&P 500 -150% -50% 50% 150% 250% 350% 450% 550% POL S&P 500 All time high of $43.34 July 1st, 2014 PolyOne Corporation Page 9 2006 2014 YTD 2015 “Where we were” “Where we are” Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 15.2% 12 – 16% Global Specialty Engineered Materials 1.1% 11.8% 12 – 16% Designed Structures & Solutions -- 7.1% 8 – 10% Performance Products & Solutions 5.5% 8.0% 9 – 12% Distribution 2.6% 6.0% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 66% 65 – 75% 3) ROIC* 5.0% 9.9% 15% 4) Adjusted EPS Growth N/A 40% Double Digit Expansion Proof of Performance & 2015 Goals *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period (Est. in 2012) PolyOne Corporation Page 10 Bridge to $2.50 Adjusted EPS by 2015 2015 EPS: $2.50 2013 EPS: $1.31 Continued Gross Margin Expansion Mergers & Acquisitions Spartech Accretion Incremental Share Buybacks Ongoing LSS Programs (50-100 bps/yr) Accelerated Innovation & Mix Improvement Several Levers to Drive Growth Mid Single Digit Revenue CAGR PolyOne Corporation Page 11 Innovation Drives Earnings Growth *Percentage of Specialty Platform revenue from products introduced in last five years $20 $53 2006 2013 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14.3% 30.7% 2006 2013 Specialty Platform Gross Margin % 19.5% 43.0% 2006 2013 Specialty Vitality Index Target ≥ 35% PolyOne Corporation Page 12 Prototype Frame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 4 11 5 10 6 9 3 4 2 15 9 1 10 4 Breakthrough Platform Derivative A Rich Pipeline of Opportunity* Number of Projects 25 14 19 17 18 93 Addressable Market ($ millions) TBD TBD $800 $450 $450 $1,700 *Pipeline as of May 29, 2014 as presented during our Innovation Day PolyOne Corporation Page 13 Megatrends Aligned with Key End Markets Decreasing Dependence on Fossil Fuels Protecting the Environment Improving Health and Wellness Megatrend End Markets Globalizing and Localizing Health & Wellness Transportation Packaging Consumer PolyOne Corporation Page 14 60% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2014 Pension Funding** As of June 30, 2014 Debt Maturities & Pension Funding – 6/30/14 Net Debt / EBITDA* = 1.8x $48 $317 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Debt Maturities As of June 30, 2014 ($ millions) Coupon Rates: 7.500% 7.375% 5.250% ** includes US-qualified pension plans only *TTM 6/30/2014 PolyOne Corporation Page 15 Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return $0.16 $0.20 $0.24 $0.32 $0.10 $0.20 $0.30 $0.40 2011 2012 2013 2014 Annual Dividend Expanding our sales, marketing, and technical capabilities Targets that expand our: • Specialty offerings • End market presence • Geographic footprint • Operating Margin Synergy opportunities Adjacent material solutions Repurchased 1.8 million shares in Q2 2014 Repurchased 8.2 million shares since early 2013 11.8 million shares are available for repurchase under the current authorization Organic Growth Acquisitions Share Repurchases Dividends Investing in operational and LSS initiatives (including synergy capture) Manufacturing alignment PolyOne Corporation Page 16 PolyOne Core Values Innovation Collaboration Excellence PolyOne Corporation Page 17 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
Platform operating income mix percentage 2005Y* 2008Y* 2010Y* 2013Y 2014 Q2 Global Color, Additives and Inks $ 4.3 $ 28.1 $ 37.7 $ 104.0 $ 68.1 Global Specialty Engineered Materials 0.4 17.6 49.7 57.2 37.2 Designed Structures and Solutions - - - 33.4 24.1 Specialty Platform $ 4.7 $ 45.7 $ 87.4 $ 194.6 $ 129.4 Performance Products and Solutions 75.7 31.3 54.0 56.0 33.6 Distribution 19.5 28.1 42.0 63.3 34.5 Joint ventures 91.9 28.6 18.9 - - Corporate and eliminations (51.5) (425.1) (27.7) (82.4) (91.7) Operating income (loss) GAAP $ 140.3 $ (291.4) $ 174.6 $ 231.5 $ 105.8 Less: Corporate operating expense 51.5 425.1 27.7 82.4 91.7 Operating income excluding Corporate $ 191.8 $ 133.7 $ 202.3 $ 313.9 $ 197.5 Specialty platform operating mix percentage 2% 34% 43% 62% 66% * Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.