https://www.avient.com/products/polymer-colorants/solid-color-masterbatches/omnicolor-multipurpose-colorants
Heavy-metal- and cadmium-free
https://www.avient.com/news/polyone-wilflex-screen-printing-inks-receive-key-2014-regulatory-certifications
New for 2014, Wilflex has expanded testing to include full test reports for Oasis™ Waterbase ink portfolio including formaldehyde, APEOs (alkyl phenol ethoxylates), heavy metals, and other non-preferred substances.
https://www.avient.com/news/polyone-expands-its-reach-advanced-composite-materials-jec-world-2019
PolyOne’s advanced composites provide high strength and lightweight performance for products within the automotive, heavy truck, marine, consumer, and industrial markets.
https://www.avient.com/sites/default/files/resources/Wells%2520Fargo%2520Conference%2520-%2520IR%2520Presentation%25205-6-2015%2520-%2520wNon%2520GAAP%2520and%2520Appendix.pdf
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 acquisitions, including any expected synergies; Our ability to successfully integrate acquired companies and achieve the expected results of the acquisitions, including, without limitation, the acquisitions 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 in the markets 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, employee productivity goals, and an inability to raise or sustain prices for products or services; 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. 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 17 Appendix PolyOne Corporation Page 18 $0.44 $0.46 $0.40 $0.45 $0.50 Q1 2014 Q1 2015 Adjusted EPS $30 $34 $25 $30 $35 Q1 2014 Q1 2015 GCAI Operating Income (in millions) $18 $23 $15 $20 $25 Q1 2014 Q1 2015 GSEM Operating Income (in millions) Q1 2015 Financial Highlights Global Specialty Engineered Materials’ operating margin of 16.3% above the 2015 target Global Color Additives and Inks’ operating margin grew to 16.2% Adjusted EPS growth despite unfavorable foreign exchange and market dynamics • Ex. currency, EPS grew 10.5% +5% +26% +11% PolyOne Corporation Page 19 Appliances 2% Building & Construction 12% Consumer 7% Electrical & Electronics 1% Healthcare 6% Industrial 14% Packaging 31% Textiles 7% Transportation 8% Wire & Cable 12% 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 12-16% 16.2% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2015 Operating Income % of Sales At a Glance Global Color, Additives and Inks 2014 Revenues: $0.9 Billion Solutions Expanding Profits 2014 Revenue by Industry Segment 14.7% Target United States 44% Europe 36% Canada 2% Asia 12% Latin America 6% PolyOne Corporation Page 20 Appliances 4% Building & Construction 3% Consumer 18% Electrical & Electronics 16% Healthcare 12% Industrial 8% Packaging 5% Transportation 20% Wire & Cable 12% At a Glance Global Specialty Engineered Materials 2014 Revenues: $0.6 Billion Solutions 2014 Revenue by Industry Segment Expanding Profits 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 12-16% 16.3% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2015 Operating Income % of Sales Target 12.1% United States 44% Europe 33% Canada 2% Asia 19% Latin America 2% PolyOne Corporation Page 21 Appliances 2% Building & Construction 8% Consumer 5% Healthcare 6% Industrial 23% Packaging 27% Transportation 30% United States 96% Canada 4% At a Glance Designed Structures and Solutions Solutions 2014 Revenues: $0.6 Billion Expanding Profits 2014 Revenue by Industry Segment 1.4% 5.6% 7.3% 2.7% 8-10% 2012 2013 2014 Q1 2015 2015 Operating Income % of Sales Target PolyOne Corporation Page 22 Appliances 8% Building & Construction 33% Consumer 5% Electrical & Electronics 3% Healthcare 1% Industrial 11% Packaging 5% Transportation 18% Wire & Cable 16% 5.5% 6.9% 3.8% 3.6% 5.5% 4.3% 6.3% 7.2% 6.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2015 Operating Income % of Sales At a Glance Performance Products and Solutions Solutions Expanding Profits 2014 Revenues: $0.8 Billion 9-12% Target 2014 Revenue by Industry Segment 7.7% United States 80% Canada 14% Asia 2% Latin America 4% PolyOne Corporation Page 23 Appliances 6% Building & Construction 5% Consumer 13% Electrical & Electronics 6% Healthcare 23% Industrial 15% Packaging 4% Transportation 25% Wire & Cable 3% 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% 6.4% 5.9% 5.9% 6-7.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2015 Operating Income % of Sales 15% 52% 2006 2014 At a Glance Distribution Key Suppliers 2014 Revenues: $1.1 Billion ROIC Expanding Profits 6.1% Target http://www.polyone.com/Pages/VariationRoot.aspx PolyOne Corporation Page 24 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 25 Commitment to Operational Excellence 81% 93% 2006 2014 16.2% 9.9% 2006 2014 On-Time Delivery Working Capital % of Sales 5% 43% 2006 2014 Percent of Associates Trained in LSS Four consecutive years – CFO Magazine Best Working Capital Management in the chemical industry World’s Best Business Process Excellence Program in 2012* 103 trained Black Belts 247 trained Green Belts 127 trained Kaizen Leaders World’s Best Start-up Program for Lean Six Sigma Deployment in 2009* *Both awards received from International Quality and Productivity Center PolyOne Corporation Page 26 Application Examples PolyOne Corporation Page 27 $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 28 • 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 29 • Color harmonization across 15 unique color-and-polymer combinations • Eliminated need for multiple pre- colored materials • Reduced Land Rover’s working capital 2015 Range Rover Evoque Interior PolyOne Corporation Page 30 • Reduced health and environmental impact • System cost reduction • Radiation-shielding performance • Parts consolidation • Design freedom CT Scanner PolyOne Corporation Page 31 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 32 Next Generation Solar Charger • Ginkgo Solar Tree charger utilizing our unique reSound™ material • reSound™ is a durable material consisting of 50% bio-derived plastic and 50% traditional petroleum-based plastic • Use of reSound™ reduced the carbon footprint for this product by 35% • reSound™ Is classified as a PolyOne Sustainable SolutionSM PolyOne Sustainable SolutionSM PolyOne Corporation Page 33 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 organoleptic properties PolyOne Corporation Page 34 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 Schedule I 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.
Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; employee separation costs resulting from personnel reduction programs, plant phase-in costs, executive separation agreements; asset impairments; mark-to-market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties, remediation costs and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; unrealized gains and losses from foreign currency option contracts; one-time, non-recurring items; and the effect of changes in accounting principles or other such laws or provisions affecting reported results. (2) Tax adjustments include the net tax expense (benefit) from one-time income tax items and deferred income tax valuations allowance adjustments.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520–%2520Goldman%2520Sachs%2520Conference%25202015.pdf
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 in the markets 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, employee productivity goals, and an inability to raise or sustain prices for products or services; 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. 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 18 Appendix PolyOne Corporation Page 19 $0.17 $0.22 $0.24 $0.31 $0.44 $0.46 $0.00 $0.25 $0.50 Q1'10 Q1'11 Q1'12 Q1'13 Q1'14 Q1'15 Adjusted EPS $30 $34 $25 $30 $35 Q1 2014 Q1 2015 GCAI Operating Income (in millions) $18 $23 $15 $20 $25 Q1 2014 Q1 2015 GSEM Operating Income (in millions) Q1 2015 Financial Highlights Global Specialty Engineered Materials’ operating margin of 16.3% above the 2015 target Global Color Additives and Inks’ operating margin grew to 16.2% First quarter adjusted EPS has grown on average 23% per year since 2010 +26% +11% PolyOne Corporation Page 20 Appliances 2% Building & Construction 12% Consumer 7% Electrical & Electronics 1% Healthcare 6% Industrial 14% Packaging 31% Textiles 7% Transportation 8% Wire & Cable 12% 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 16.2% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2020 Operating Income % of Sales At a Glance Global Color, Additives and Inks 2014 Revenues: $0.9 Billion Solutions Expanding Profits 2014 Revenue by Industry Segment 14.7% Platinum Vision United States 44% Europe 36% Canada 2% Asia 12% Latin America 6% PolyOne Corporation Page 21 Appliances 4% Building & Construction 3% Consumer 18% Electrical & Electronics 16% Healthcare 12% Industrial 8% Packaging 5% Transportation 20% Wire & Cable 12% At a Glance Global Specialty Engineered Materials 2014 Revenues: $0.6 Billion Solutions 2014 Revenue by Industry Segment Expanding Profits 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 16.3% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2020 Operating Income % of Sales Platinum Vision 12.1% United States 44% Europe 33% Canada 2% Asia 19% Latin America 2% PolyOne Corporation Page 22 Appliances 2% Building & Construction 8% Consumer 5% Healthcare 6% Industrial 23% Packaging 27% Transportation 30% United States 96% Canada 4% At a Glance Designed Structures and Solutions Solutions 2014 Revenues: $0.6 Billion Expanding Profits 2014 Revenue by Industry Segment 1.4% 5.6% 7.3% 2.7% 12-14% 2012 2013 2014 Q1 2015 2020 Operating Income % of Sales Platinum Vision PolyOne Corporation Page 23 Appliances 8% Building & Construction 33% Consumer 5% Electrical & Electronics 3% Healthcare 1% Industrial 11% Packaging 5% Transportation 18% Wire & Cable 16% 5.5% 6.9% 3.8% 3.6% 5.5% 4.3% 6.3% 7.2% 6.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2020 Operating Income % of Sales At a Glance Performance Products and Solutions Solutions Expanding Profits 2014 Revenues: $0.8 Billion 10-12% Platinum Vision 2014 Revenue by Industry Segment 7.7% United States 80% Canada 14% Asia 2% Latin America 4% PolyOne Corporation Page 24 Appliances 6% Building & Construction 5% Consumer 13% Electrical & Electronics 6% Healthcare 23% Industrial 15% Packaging 4% Transportation 25% Wire & Cable 3% 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% 6.4% 5.9% 5.9% 6.5-7.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2020 Operating Income % of Sales 15% 50% 2006 Q1 2015 At a Glance Distribution Key Suppliers 2014 Revenues: $1.1 Billion ROIC Expanding Profits 6.1% Platinum Vision http://www.polyone.com/Pages/VariationRoot.aspx PolyOne Corporation Page 25 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 26 Commitment to Operational Excellence 81% 93% 2006 2014 16.2% 9.9% 2006 2014 On-Time Delivery Working Capital % of Sales 5% 43% 2006 2014 Percent of Associates Trained in LSS Four consecutive years – CFO Magazine Best Working Capital Management in the chemical industry World’s Best Business Process Excellence Program in 2012* 103 trained Black Belts 247 trained Green Belts 127 trained Kaizen Leaders World’s Best Start-up Program for Lean Six Sigma Deployment in 2009* *Both awards received from International Quality and Productivity Center PolyOne Corporation Page 27 Application Examples PolyOne Corporation Page 28 $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 29 • 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 30 • Color harmonization across 15 unique color-and-polymer combinations • Eliminated need for multiple pre- colored materials • Reduced Land Rover’s working capital 2015 Range Rover Evoque Interior PolyOne Corporation Page 31 • Reduced health and environmental impact • System cost reduction • Radiation-shielding performance • Parts consolidation • Design freedom CT Scanner PolyOne Corporation Page 32 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 33 Next Generation Solar Charger • Ginkgo Solar Tree charger utilizing our unique reSound™ material • reSound™ is a durable material consisting of 50% bio-derived plastic and 50% traditional petroleum-based plastic • Use of reSound™ reduced the carbon footprint for this product by 35% • reSound™ Is classified as a PolyOne Sustainable SolutionSM PolyOne Sustainable SolutionSM PolyOne Corporation Page 34 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 organoleptic properties PolyOne Corporation Page 35 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 Schedule I 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.
Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; employee separation costs resulting from personnel reduction programs, plant phase-in costs, executive separation agreements; asset impairments; mark-to-market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties, remediation costs and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; unrealized gains and losses from foreign currency option contracts; one-time, non-recurring items; and the effect of changes in accounting principles or other such laws or provisions affecting reported results. (2) Tax adjustments include the net tax expense (benefit) from one-time income tax items and deferred income tax valuations allowance adjustments. 3 Net debt to adjusted EBITDA is calculated as follows: Three Months Ended Twelve Months Ended Three Months Ended Trailing Twelve Months (TTM) Ended (In millions) March 31, 2014 December 31, 2014 March 31, 2015 March 31, 2015 Short-term portion and current portion of long-term debt $ 12.8 $ 61.8 $ 61.9 Long-term debt 968.1 962.0 1,049.2 Less: Cash and cash equivalents (238.3) (238.6) (226.4) Net Debt $ 742.6 785.2 884.7 Income before income taxes $ 39.9 $ 88.4 $ 53.3 $ 101.8 Interest expense, net 15.5 62.2 16.1 62.8 Depreciation and amortization 32.8 123.9 25.1 116.2 Special items, impact on operating income 22.9 164.9 9.3 151.3 Accelerated depreciation included in special items (6.8) (23.1) (0.1) (16.4) Adjusted EBITDA $ 104.3 $ 416.3 $ 103.7 $ 415.7 Net Debt/TTM Adjusted EBITDA 2.1 Goldman Sachs - May 19 2015 r4 Goldman Sachs - May 19 2015 POL IR Presentation - Updated for 2015 - 5-13-15 GS ��PolyOne Investor Presentation�Goldman Sachs Basic Materials Conference�May 2015�� Forward-Looking Statements Use of Non-GAAP Measures PolyOne Commodity to Specialty Transformation PolyOne�At A Glance Mix Shift Highlights Specialty Transformation Confirmation of Our Strategy Strategy and Execution Drive Results Proof of Performance & 2020 Goals Platinum Vision: Pathway to Accelerated Growth Innovation Drives Earnings Growth Megatrends Aligned with Key End Markets A Rich Pipeline of Opportunity Debt Maturities & Pension Funding Free Cash Flow and Strong Balance Sheet �Fund Investment / Shareholder Return PolyOne Core Values Why Invest In PolyOne?
https://www.avient.com/sites/default/files/AVNT Q1 2023 Earnings Press Release.pdf
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®.
Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net income from continuing operations attributable to Avient shareholders $ 20.8 $ 0.23 $ 64.4 $ 0.70 Special items, after tax (Attachment 3) 22.3 0.24 6.4 0.07 Amortization expense, after-tax 15.1 0.16 10.8 0.12 Adjusted net income / EPS $ 58.2 $ 0.63 $ 81.6 $ 0.89 8 Attachment 2 Avient Corporation Condensed Consolidated Statements of Income (Unaudited) (In millions, except per share data) Three Months Ended March 31, 2023 2022 Sales $ 845.7 $ 892.2 Cost of sales 598.1 637.8 Gross margin 247.6 254.4 Selling and administrative expense 190.5 152.2 Operating income 57.1 102.2 Interest expense, net (28.8) (16.9) Other income (expense), net 0.7 (0.6) Income from continuing operations before income taxes 29.0 84.7 Income tax expense (7.7) (20.0) Net income from continuing operations 21.3 64.7 (Loss) income from discontinued operations, net of income taxes (0.9) 19.8 Net income 20.4 84.5 Net income attributable to noncontrolling interests (0.5) (0.3) Net income attributable to Avient common shareholders $ 19.9 $ 84.2 Earnings (loss) per share attributable to Avient common shareholders - Basic: Continuing operations $ 0.23 $ 0.70 Discontinued operations (0.01) 0.22 Total $ 0.22 $ 0.92 Earnings (loss) per share attributable to Avient common shareholders - Diluted: Continuing operations $ 0.23 $ 0.70 Discontinued operations (0.01) 0.21 Total $ 0.22 $ 0.91 Cash dividends declared per share of common stock $ 0.2475 $ 0.2375 Weighted-average shares used to compute earnings per common share: Basic 91.0 91.5 Diluted 91.8 92.3 9 Attachment 3 Avient Corporation Summary of Special Items (Unaudited) (In millions, except per share data) Special items (1) Three Months Ended March 31, 2023 2022 Cost of sales: Restructuring costs, including accelerated depreciation $ (6.6) $ (4.4) Environmental remediation costs (1.4) (2.0) Reimbursement of previously incurred environmental costs — 0.6 Impact on cost of sales (8.0) (5.8) Selling and administrative expense: Restructuring, legal and other (15.7) 1.9 Acquisition related costs (3.4) (2.9) Impact on selling and administrative expense (19.1) (1.0) Impact on operating income (27.1) (6.8) Other income (loss), net (0.2) 0.1 Impact on income from continuing operations before income taxes (27.3) (6.7) Income tax expense (benefit) on above special items 6.9 1.8 Tax adjustments(2) (1.9) (1.5) Impact of special items on net income from continuing operations $ (22.3) $ (6.4) Diluted earnings per common share impact $ (0.24) $ (0.07) Weighted average shares used to compute adjusted earnings per share: Diluted 91.8 92.3 (1) Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel reduction programs, plant realignment costs, executive separation agreements; asset impairments; settlement gains or losses and mark-to- market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non-recurring items; and the effect of changes in accounting principles or other such laws or provisions affecting reported results. (2) Tax adjustments include the net tax impact from non-recurring income tax items, adjustments to uncertain tax position reserves and changes to valuation allowances. 10 Attachment 4 Avient Corporation Condensed Consolidated Balance Sheets (In millions) (Unaudited) March 31, 2023 December 31, 2022 ASSETS Current assets: Cash and cash equivalents $ 582.7 $ 641.1 Accounts receivable, net 484.4 440.6 Inventories, net 371.9 372.7 Other current assets 125.3 115.3 Total current assets 1,564.3 1,569.7 Property, net 1,045.7 1,049.2 Goodwill 1,689.7 1,671.9 Intangible assets, net 1,601.7 1,597.6 Other non-current assets 209.8 196.6 Total assets $ 6,111.2 $ 6,085.0 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term debt $ 2.2 $ 2.2 Accounts payable 448.1 454.4 Accrued expenses and other current liabilities 386.9 412.8 Total current liabilities 837.2 869.4 Non-current liabilities: Long-term debt 2,177.7 2,176.7 Pension and other post-retirement benefits 66.2 67.2 Deferred income taxes 332.5 342.5 Other non-current liabilities 329.0 276.4 Total non-current liabilities 2,905.4 2,862.8 SHAREHOLDERS' EQUITY Avient shareholders’ equity 2,349.8 2,334.5 Noncontrolling interest 18.8 18.3 Total equity 2,368.6 2,352.8 Total liabilities and equity $ 6,111.2 $ 6,085.0 11 Attachment 5 Avient Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Three Months Ended March 31, 2023 2022 Operating Activities Net income $ 20.4 $ 84.5 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 48.7 35.7 Accelerated depreciation 1.8 2.1 Share-based compensation expense 3.2 3.2 Changes in assets and liabilities, net of the effect of acquisitions: Increase in accounts receivable (40.2) (118.8) Decrease (increase) in inventories 3.8 (15.1) (Decrease) increase in accounts payable (9.9) 90.5 Accrued expenses and other assets and liabilities, net (50.0) (63.2) Net cash (used) provided by operating activities (22.2) 18.9 Investing activities Capital expenditures (20.3) (13.3) Net proceeds from divestiture 7.3 — Net cash used by investing activities (13.0) (13.3) Financing activities Purchase of common shares for treasury — (15.8) Cash dividends paid (22.5) (21.7) Repayment of long-term debt (0.8) (2.4) Other financing (2.3) (3.9) Net cash used by financing activities (25.6) (43.8) Effect of exchange rate changes on cash 2.4 (0.4) Decrease in cash and cash equivalents (58.4) (38.6) Cash and cash equivalents at beginning of year 641.1 601.2 Cash and cash equivalents at end of period $ 582.7 $ 562.6 12 Attachment 6 Avient Corporation Business Segment Operations (Unaudited) (In millions) Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) at the segment level does not include: special items as defined in Attachment 3; corporate general and administration costs that are not allocated to segments; intersegment sales and profit eliminations; share-based compensation costs; and certain other items that are not included in the measure of segment profit and loss that is reported to and reviewed by the chief operating decision maker.
https://www.avient.com/sites/default/files/resources/PolyOne%25202011%2520Annual%2520Report.pdf
Gains and losses on these contracts generally offset gains and losses on the assets and liabilities being hedged.
Realized and unrealized gains and losses on these contracts offset the foreign exchange gains and losses on the underlying transactions.
As of December 31, 2011, 1.6 million RSUs remain unvested with a weighted- average grant date fair value of $6.07.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520RW%2520Baird%25202015%2520Industrial%2520Conference%2520-%2520November%25202015.pdf
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 in the markets 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, employee productivity goals, and an inability to raise or sustain prices for products or services; 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. 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 17 Appendix PolyOne Corporation Page 18 $0.20 $0.28 $0.36 $0.49 $0.54 $0.00 $0.15 $0.30 $0.45 $0.60 Q3'11 Q3'12 Q3'13 Q3'14 Q3'15 Adjusted EPS Q3 2015 Financial Highlights Color Additives & Inks operating margin reaches record third quarter level of 17.3% Specialty Engineered Materials operating margin grew 210 basis points year-over-year to 14.7% Third quarter adjusted EPS has grown on average 28% per year since 2011 $13 $19 $29 $30 $35 $0 $10 $20 $30 $40 Q3'11 Q3'12 Q3'13 Q3'14 Q3'15 GCAI Operating Profit $11 $13 $15 $18 $20 $10 $14 $18 $22 Q3'11 Q3'12 Q3'13 Q3'14 Q3'15 GSEM Operating Profit Note: $ in millions, except per share data PolyOne Corporation Page 19 Appliances 2% Building & Construction 12% Consumer 7% Electrical & Electronics 1% Healthcare 6% Industrial 14% Packaging 31% Textiles 7% Transportation 8% Wire & Cable 12% 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 17.2% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD 2015 2020 Operating Income % of Sales At a Glance Global Color, Additives and Inks 2014 Revenues: $0.9 Billion Solutions Expanding Profits 2014 Revenue by Industry Segment 14.7% Platinum Vision United States 44% Europe 36% Canada 2% Asia 12% Latin America 6% PolyOne Corporation Page 20 Appliances 4% Building & Construction 3% Consumer 18% Electrical & Electronics 16% Healthcare 12% Industrial 8% Packaging 5% Transportation 20% Wire & Cable 12% At a Glance Global Specialty Engineered Materials 2014 Revenues: $0.6 Billion Solutions 2014 Revenue by Industry Segment Expanding Profits 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 15.1% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD 2015 2020 Operating Income % of Sales Platinum Vision 12.1% United States 44% Europe 33% Canada 2% Asia 19% Latin America 2% PolyOne Corporation Page 21 Appliances 2% Building & Construction 8% Consumer 5% Healthcare 6% Industrial 23% Packaging 27% Transportation 30% United States 96% Canada 4% At a Glance Designed Structures and Solutions Solutions 2014 Revenues: $0.6 Billion Expanding Profits 2014 Revenue by Industry Segment 1.4% 5.6% 7.3% 3.5% 12-14% 2012 2013 2014 YTD 2015 2020 Operating Income % of Sales Platinum Vision PolyOne Corporation Page 22 Appliances 8% Building & Construction 33% Consumer 5% Electrical & Electronics 3% Healthcare 1% Industrial 11% Packaging 5% Transportation 18% Wire & Cable 16% 5.5% 6.9% 3.8% 3.6% 5.5% 4.3% 6.3% 7.2% 8.1% 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD 2015 2020 Operating Income % of Sales At a Glance Performance Products and Solutions Solutions Expanding Profits 2014 Revenues: $0.8 Billion 10-12% Platinum Vision 2014 Revenue by Industry Segment 7.7% United States 80% Canada 14% Asia 2% Latin America 4% PolyOne Corporation Page 23 Appliances 6% Building & Construction 5% Consumer 13% Electrical & Electronics 6% Healthcare 23% Industrial 15% Packaging 4% Transportation 25% Wire & Cable 3% 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 YTD 2015 2020 Operating Income % of Sales 15% 52% 2006 Q3 2015 At a Glance Distribution Key Suppliers 2014 Revenues: $1.1 Billion ROIC Expanding Profits 6.1% Platinum Vision http://www.polyone.com/Pages/VariationRoot.aspx PolyOne Corporation Page 24 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 25 Commitment to Operational Excellence 81% 93% 2006 2014 16.2% 9.9% 2006 2014 On-Time Delivery Working Capital % of Sales 5% 43% 2006 2014 Percent of Associates Trained in LSS Five consecutive years – CFO Magazine Best Working Capital Management in the chemical industry World’s Best Business Process Excellence Program in 2012* 113 trained Black Belts 235 trained Green Belts 151 trained Kaizen Leaders World’s Best Start-up Program for Lean Six Sigma Deployment in 2009* *Both awards received from International Quality and Productivity Center PolyOne Corporation Page 26 Application Examples PolyOne Corporation Page 27 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 28 $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 29 • 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 30 • Color harmonization across 15 unique color-and-polymer combinations • Eliminated need for multiple pre- colored materials • Reduced Land Rover’s working capital 2015 Range Rover Evoque Interior PolyOne Corporation Page 31 • Reduced health and environmental impact • System cost reduction • Radiation-shielding performance • Parts consolidation • Design freedom CT Scanner PolyOne Corporation Page 32 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 33 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 34 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.
Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; employee separation costs resulting from personnel reduction programs, plant phase-in costs, executive separation agreements; asset impairments; mark-to-market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties, remediation costs and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non-recurring items; and the effect of changes in accounting principles or other such laws or provisions affecting reported results. (2) Tax adjustments include the net tax expense/benefit from one-time income tax items, the set-up or reversal of uncertain tax position reserves and deferred income tax valuations allowance adjustments.
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Our vast portfolio delivers product performance and processing efficiencies that will help you gain market advantages and grow your bottom line.
DESIGN & PROCESSING Material flexibility and customization, extrusion and molding optimization techniques SOLUTION: Advanced polymer science, application development, technical service VISUAL AESTHETICS Custom colors, deep shades, special effects SOLUTION: Metallic colorants, granite & woodgrain effects DURABILITY Wind & impact resistance, chemical resistance, weatherability SOLUTION: Scratch & mar resistant or IR/UV resistant additives, dimensional stabilizers TECHNOLOGY DESCRIPTION TYPICAL APPLICATIONS Antimicrobial Additives Antimicrobial technology to limit microbe growth— reduces bacterial, mold and fungal growth on surface and through thickness, protecting finished part • Potable water equipment • Roofs & eaves • Decking, fencing & railings • High-touch surfaces • Bath surrounds, liners & inserts Scratch & Mar Resistance Additives For applications requiring resistance to daily surface abrasion, and management of surface energy • Exterior fencing, decking, railings & shutters • Outdoor furniture • Playground equipment Flame Retardant Additives Reduces spread of fire and heat release by creating a char to limit oxygen at the flame source • Wire & cable • Telecommunications • Decking, fencing & railings • Conduit • Exterior siding & cladding • Housings UV and Light Blocking Additives UV stabilizers help mitigate the harmful effects of UV radiation while light blocking additives protect products sensitive to light • Exterior siding & cladding • Trim & moldings • Roofing, shingles, tiles • Outdoor furniture • Fencing, decking, railings & shutters Anti-static and Conductive Additives Controls build-up of static charges to create static-dissipated parts while reducing related dust accumulation • Electrical connectors • Conduit or tubing • Junction boxes • Flooring • 5G enabling Chemical Foaming Agents Reduces weight and density without compromising mechanical properties • Exterior siding & cladding • Modular panels • Decking, fencing & railings Optimization Additives Cycle-time reducers that help optimize production while allowing improved dimensional stability and energy efficiency, among other processing benefits • Used in extrusion and injection molding processes to improve thermal conductivity, and lower processing temperatures and energy consumption Laser Marking Supports design and production flexibility and offers a new level of control in marking polymers with speed and clarity • Wire & cable • Outdoor furniture • Equipment & housings • Pipes & fittings Anti-counterfeiting Additives Customizable in-plastic authentication technologies that enable positive identification versus counterfeit products • Wire & cable jacketing • Pipes & fittings • Telecommunications • Potable water equipment Wood Plastic Composite (WPC) Capstock Technology Pair with traditional WPC materials as a substrate for a durable outer layer • Exterior siding & cladding • Outdoor furniture • Fencing, decking & railings Sustainable Colorants & Additives Color concentrates and additives carefully chosen to meet industry requirements and legislation, and designed to lower environmental impact while improving sustainability • Green building roofing • OSHA compliance • Sheet & profile extrusions • LEED building & material credits FX Special Effects Colorants Granite, marbling, woodgrain and other distinctive colorant technologies to provide special surface effects • Decorative molding • Chair or hand rails • Wallcovering • Blinds & shutters • Any surface or part demanding a distinctive look Pool Colorants Durable, long-lasting pigment formulations for finishes that hold up to pool water chemistries • Pool decks • Coping • In-ground swimming pools Metallic Flooring & Stain Colorants Colorants designed to give concrete floors and surfaces a distinctive appearance • Concrete flooring • Countertops • Decorative concrete • Walls While this listing represents many Avient solutions and addresses common applications, we can tackle many other building & construction needs.
Our range of world-class services includes: Color Technology: Custom color design, saturated colors, and special effects to fill market niches and eliminate secondary operations Color & Design Services: Trend and color insights, and product development assistance to optimize design and gain speed to market Regulatory Coordination: Aid with new product approvals to reduce regulatory overhead and minimize risk Field Technical Service: Support for tool design, startup and production optimization to gain manufacturing efficiencies Sustainability: Innovative materials and solutions to help you meet your sustainability goals To learn more visit www.avient.com or call 1.844.4AVIENT (1.844.428.4368) B&C Industry Bulletin B&C Industry Bulletin_Single Pages
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Chantal Nestor-Saury, Product Development Manager Avient Corporation 48 Brand Commitment: Percent Recycled Plastic Used Demand by Feedstock Type 39% 29% 37% 16% 25% 11% 11% 6% 19% 7% 0% 10% 20% 30% 40% 50% Brand 1 Brand 2 Brand 3 Brand 4 Brand 5 Brand 6 Brand 7 Brand 8 Brand 9 Brand 10 Progress through 2022 Gap to reach 2025 targets Source: Ellen MacArthur Foundation 2022 2020 2030 12% CAGR Recycled Plastics Virgin Plastics3% CAGR RENEW – TAKEAWAY Demand for Recycled Content Drives Growth Projections Examples Covered Today 55% Other Applications 45% 2022 $340M Source: McKinsey HOW WE ENABLE SUSTAINABILITY Reduce Chris Pederson Senior Vice President, President of Specialty Engineered Materials Avient Corporation 49 REDUCE Avient Corporation 50 KEY CUSTOMER CHALLENGES: • Improving Fuel Economy - Incorporating innovative lighter-weight alternative materials as a cost-effective way to reduce fuel consumption • Reducing Energy Consumption and Dependence on Fossil Fuels - Negative public perceptions of fossil fuels are challenging companies to utilize alternative energy sources and also to reduce overall demand (consumption) • Reducing Carbon Footprint - Companies are seeking assistance from their suppliers to address the ever-increasing pressure to reduce their carbon footprint • Lessening Environmental Impact - Manufacturers are looking to reduce dependence on processes with high environmental impact such as the release of Volatile Organic Compounds (VOCs) during painting Solutions to reduce weight and energy consumption Avient Corporation 51 Lightweight Dashboards Hydrocerol™ Chemical Foaming Agents • Reduces part weight • No impact on performance • Highly cost effective 20% LESS MATERIAL Automotive / EVs 2022 Revenue: $46M Body + Trim SmartBatch™ Paint Replacement • Reduces emission of volatile organic compounds (VOCs) REDUCES VOCs Protective Film Versaflex™ Protective Film • Protects new cars from damage during shipping • High-tack eliminates solvent containing adhesives Avient Corporation 52 LED Lighting Components ThermaTech™ Thermally Conductive Formulations • Reduces weight vs. aluminum • Removes heat – extends LED life • Will not corrode 40% LIGHTER THAN ALUMINUM Automotive / EVs 2022 Revenue: $3M REDUCES FUEL CONSUMPTION Running Boards, Side Steps Complēt™ Long Fiber Reinforced Structural Thermoplastics • High strength-to-weight • Replaces steel/aluminum • Excellent load carrying and fatigue resistance Avient Corporation 53 Battery Frame Maxxam™ Polyolefin Formulations • Critical stiffness and rigidity • Chemical and thermal performance • Replaces a heavier, aluminum frame 60% LIGHTER THAN ALUMINUM Design for Lightweighting Avient Design Services • Comprehensive design for sustainability capabilities • Materials agnostic • 10% reduction in weight increases range by 14% SUSTAINABLE DESIGN Automotive / EVs 2022 Revenue: $4M EV Battery Cooling System Versaflex™ Thermoplastic Elastomers • Thermal management • Chemically resistant • More efficient and longer life battery EXTENDS BATTERY LIFE Avient Corporation 54 EV Connectors Edgetek™ PKE Non-halogen flame retardant Formulations • Provides reduced carbon footprint alternative to traditional materials (Nylon) 66% LESS CO2 THAN NYLONCharging Cable Infrastructure ECCOH™ Wire and Cable Formulations • Low smoke, zero halogen • Flame resistance exceeds EVM1/EVL2 requirements ZERO HALOGEN Automotive / EVs 2022 Revenue: $2M Avient Corporation 55 Trailer Flooring Polystrand™ R Recycled PET Composite Tapes • Minimum 95% post-consumer recycle content • Improved carbon footprint without sacrificing performance 95% RECYCLED PET Aerodynamic Side Shield Polystrand™ Thermoplastic Composite Laminates • Can be post-formed • Reduces fuel consumption • High impact and fatigue resistance 60% LIGHTER Commercial Transportation, Aerospace 2022 Revenue: $8M Rail Car Doors Glasforms™ Composite Panels • Replaces steel • Will not corrode • Reduces weight LIGHT & DURABLE Air Cargo Nets Bio-based Dyneema® Fiber • Reduces fuel consumption • Extends product life from 3 to 5 years 59% LESS WEIGHT Arm Rests & Seat Frames Complēt™ Long Fiber Composites • Replaces steel • High strength-to-weight ratio LIGHT & STRONG Commercial Transportation, Aerospace 2022 Revenue: $8M Air Cargo Containers Polystrand™ Composite Sandwich Panels • Lighter and stronger than aluminum • Reduces fuel consumption 95% RECYCLE CONTENT Avient Corporation 56 Avient Corporation 57 Aquaculture/ Fishing Nets Dyneema® Fishing Net Fibers • High bite resistance – lowers maintenance costs and fish loss • Lighter weight reduces fuel consumption – allows for larger net sizes 60% LIGHTER THAN NYLON/ POLYESTER 70% LIGHTER THAN STEEL Lifting Slings Dyneema® Fiber • Facilitates heavy lift in harsh environments • Accredited by DNV GL, ABS, Bureau Veritas Mooring Lines Dyneema® Mooring Rope Fibers • Able to handle heavy loads common to modern shipping • Improves handling • Reduces dock worker injuries 2x SERVICE LIFE Marine Infrastructure 2022 Revenue: $41M Solar Power Station UV Solutions Smartbatch™ Combination Colorants • Protects solar power panels from UV weathering and outdoor exposure • Meets critical performance standards 10% ENERGY SAVINGS (VS.
Nets made of Dyneema are very strong and very light… Less weight means less fuel burn, very interesting for us.”
CAFE: Corporate Average Fuel Economy >50% Improvement REDUCE – TAKEAWAY Reducing Energy Consumption and Dependence on Fossil Fuels Drives Growth Projections Examples Covered Today 45% Other Applications 55% 2022PF $310M 38 46 CAFE1 Miles Per Gallon Proposed Requirements HOW WE ENABLE SUSTAINABILITY Preserve Woon Keat Moh Senior Vice President, President of Color, Additives and Inks – Americas and Asia Avient Corporation 61 PRESERVE Avient Corporation 62 KEY CUSTOMER CHALLENGES: • Preserving Key Natural Resources - Companies are being challenged to mitigate high environmental impact processes such as water-intensive textile dyeing or food spoilage • Incorporating Renewable Materials - Adoption of bio-based raw materials requires design and formulation expertise to overcome performance shortcomings of neat resins • Increasing Healthcare Regulations - Utilizing sustainable materials in healthcare applications requires considerable support in navigating complex regulatory requirements • Increasing Regulatory Compliance - Non-Intentionally Added Substances (NIAS) need to be controlled in sensitive applications • Enabling Faster and More Reliable Connectivity – Substantial investments in 5G infrastructure are required to unlock the potential of the Internet of Things Solutions to preserve and protect natural resources & human life Avient Corporation 63 Spin Dyed Precolor Textile Yarn Renol™ Spin Dyeing Colorants • Replaces water-based dye processes to reduce waste creation • Conserves water and energy 75% LESS WATER PROTECTIVE DENIM Dyneema® Workwear Solutions • Improves tear resistance 50-100% • More protective than competitive alternatives • Enables the amount of protective fiber to be reduced without sacrificing performance 600% IMPROVED ABRASION RESISTANCE Clothing & Textiles 2022 Revenue: $49M Avient Corporation 64 Low Cure Textile Inks Avient Specialty Inks™ Low Cure Inks • Decreases energy consumption • Reduces scrap due to heat-related defects SAVES ENERGY Clothing & Textiles 2022 Revenue: $40M BIO-BASED FORMULATIONS Water Based Textile Inks Zodiac™ Aquarius™ Specialty Inks • Incorporates bio-based materials • Non-formaldehyde solutions available • Reduces waste by enabling high open screen time Avient Corporation 65 Mosquito Netting Cesa™ Fiber Anti-Mosquito Additives • Helps control malaria • Protects consistently using a controlled release of insecticide • Expands access to healthcare breakthroughs to global communities ANNUAL NEW MALARIA CASES 200 Million Antimicrobial Protection Cesa™ WithStand™ Antimicrobial Additives • Reduces microbial / mold growth • Helps reduce odor, staining, discoloration • Excellent comfort and wearability • Chemical resistance - will not discolor or degrade REDUCES MICROBES Human Health & Safety 2022 Revenue: $5M Avient Corporation 66 Cut-Resistant Gloves Dyneema® Solutions • Incorporates bio-based materials • Reduces carbon emissions • Excellent wearability / comfort WORK INJURIES REDUCES Rescue Rope Dyneema® Solutions • Superior strength-to-weight ratio • High break load • Extraordinary reliability SAVES LIVES Human Health & Safety 2022 Revenue: $106M Body Armor Dyneema® Protective Solutions • Exceptional trauma protection • Excellent wearability LIGHTER THAN ARAMID FIBER 35% Avient Corporation 67 40% BIO-DERIVED Pharmaceutical Tubing Versaflex™ Healthcare Pharma Tubing Formulations NEU™ Specialty Engineered Materials • Facilitates incorporation of sustainable materials with healthcare device manufacturers • Eliminates vulcanization processes Medical 2022 Revenue: $40M NON-PHTHALATE Respiratory Conduit Versaflex™ Healthcare Corrugated Tubing Formulations • Non-Phthalate • ISO 10993 & USP Class VI compliant Avient Corporation 68 100% UP TO BIO-BASED CARRIER Medical Devices Mevopur™ Bio-Based Colorants • Minimizes risk through pre-testing • Provides vital regulatory compliance • Minimizes global supply chain risk with validated backup supply Continuous Glucose Monitoring and Auto Injectors Trilliant™ Healthcare Polymer Solutions • Impact performance • Chemical resistance ENABLES HOME CARE Medical 2022 Revenue: $16M Avient Corporation 69 Fiber Optic Cable and Jacketing Fiber-Line™ Optical Fiber Cable Components • Reduction in weight & energy usage • Thermal and abrasion resistant • Extends product life ENABLES CONNECTIVITY Cable Micromodules ECCOH™ Low Smoke Formulations • Non-halogen • Low smoke and toxicity SUPPORTS SUSTAINABLE INFRASTRUCTURE Base Station Components Edgetek™ Low-Density Formulations • Low density – lighter weight • Low warpage & thermal conductivity EXTENDS PRODUCT LIFE Antenna Components PREPERM™ Low Loss Dielectric Formulations • Replaces costly ceramics • Consistent and efficient antenna performance ENHANCES PERFORMANCE 5G Infrastructure 2022 Revenue: $39M Avient Corporation 70 “Nike has partnered with Avient extensively over the years because of their leadership in eco-friendly screen printing inks.”