https://www.avient.com/news/avient-unveils-colormatrix-aanchor-new-acetaldehyde-control-technology-pet-packaging
ColorMatrix AAnchor also offers excellent bottle aesthetics and mechanical strength, ultimately potentially extending the shelf life of packaged products while helping control odor and minimize the risk of off-taste in bottle contents.
https://www.avient.com/news/premium-sporting-knife-manufacturer-relies-polyone’s-bergamid-nylon-extend-its-brand-message
PolyOne is committed to delivering the ultimate polymer materials for manufacturers of outdoor products and solutions, collaborating with these customers to improve the function of high performance, high stakes equipment.
https://www.avient.com/news/polyone-onflex-lo-tpes-awarded-low-voc-technology-improves-automotive-interior-experience
To address the challenges, we designed our new materials to give leading automakers and top-tier automotive suppliers the ultimate next-level option.
https://www.avient.com/news/polyone-reveals-palettes-reflection-color-inspiration-2021
They each offer an opportunity for ‘Reflection’ – on our lifestyles, our environments and our ultimate choices.
https://www.avient.com/sites/default/files/2021-04/avient-sustain-2019-210419-interactive.pdf
Global HR systems and technology improve our HR
impact and efficiency, and ultimately support our associates with their development.
ColorMatrix™ Ultimate™ UV Light Barrier & OnCap™ Light
Shield UV and Visible Light Barrier Masterbatches
Additive for PET that effectively blocks ultraviolet light
transmission, protecting products and brand integrity
during storage, transportation and in the retail environment.
Smartbatch™ Color And Additive Concentrates offer superior UV weathering
protection for solar power installations.
https://www.avient.com/sites/default/files/2020-10/2019-avient-sustainability-report.pdf
Global HR systems and technology improve our HR
impact and efficiency, and ultimately support our associates with their development.
ColorMatrix™ Ultimate™ UV Light Barrier & OnCap™ Light
Shield UV and Visible Light Barrier Masterbatches
Additive for PET that effectively blocks ultraviolet light
transmission, protecting products and brand integrity
during storage, transportation and in the retail environment.
Smartbatch™ Color and Additive Concentrates offer superior UV weathering
protection for solar power installations.
https://www.avient.com/sites/default/files/2022-09/Avient Pro Forma Financial Information.pdf
Additionally, Adjusted EPS excludes the impact of special
items and amortization expense associated with intangible assets.
2
PRO FORMA 2021 TO 2022 BRIDGE
3
2021 EPS from Continuing Operations 1.69$
Pro Forma & Special Items 1.33
Proforma 2021 Adjusted EPS 3.02$
FX Impact (0.22)
China Lockdowns / Russia Import Sales (0.24)
Outdoor High Performance (0.13)
Dyneema 0.06
Color, Additives and Inks 0.38
Legacy Specialty Engineered Materials 0.22
Other 0.01
Proforma 2022 Adjusted EPS 3.10$
Constant Currency Sales
Sales
COLOR, ADDITIVES AND INKS
Q1 Q2 Q3 Q4 FY
4%
Q1 Q2 Q3 Q4 FY
4%
7% (4%) (9%)
6% (10%)
0% 1%
2%
Constant currency reflects prior year results restated at current year foreign exchange rates
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
7%
10% 4% (3%)
12% (6%)
5% 6%
9%
610 650 624 649 587 565 581 526
2,402 2,390
589 650 589 649 543 565 545 526
2,266 2,390
116 121 112 119 93 95 88 79
409 414
113 121 106 119 87 95 84 79
390 414
Constant Currency EBITDA
EBITDA
10%
4
Constant Currency EBITDA
Sales
Q1 Q2 Q3 Q4 FY
(1%)
PRO FORMA SPECIALTY ENGINEERED MATERIALS
Q1 Q2 Q3 Q4 FY
16%8% (8%) (8%)
3% (6%) (6%)
(2%) 2%
EBITDA
Constant Currency Sales
Constant currency reflects prior year results restated at current year foreign exchange rates
Q1 Q2 Q3 Q4 FY
4%
Q1 Q2 Q3 Q4 FY
20%12% (1%) (2%)
5% (1%) (2%)
3% 6%
314 338 348 343 325 300 321 295
1,308 1,276
303 338 329 343 303 300 301 295
1,236 1,276
67 78 75 77 70 66 66 62
278 283
65 78 73 77 67 66 63 62
268 283
5
Constant Currency Adjusted EPS
Adjusted EPS
PRO FORMA AVIENT
Q1 Q2 Q3 Q4 FY
10% (3%) (21%)
3%
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
9% 5%
7% (5%) (9%)
(1%)
(1%) (12%)
1%
Sales
Constant Currency Sales
Constant currency reflects prior year results restated at current year foreign exchange rates
Q1 Q2 Q3 Q4 FY
17% 8% (14%)
11%
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
14% 10%
11% 2% (3%)
5%
8% (5%)
7%
EBITDA
Constant Currency EBITDA
925 987 973 992 912 867 902 823
3,712 3,669
893 987 919 992 847 867 845 823
3,504 3,669
161 176 164 172 142 141 133 117
600 606
155 176 157 172 131 141 123 117
566 6068%
2%
0.84 0.98 0.87 0.96 0.70 0.68 0.61 0.48
3.02 3.10
0.79 0.98 0.82 0.96 0.63 0.68 0.56 0.48
2.80 3.10
17%
24%
6
Three Months Ended
March 31, 2022
Three Months Ended
March 31, 2021
Reconciliation to Condensed Consolidated Statements of Income Avient EPS Avient EPS
Net income from continuing operations $ 64.7 $ 60.4
Net income attributable to noncontrolling interests (0.3) (0.4)
Net income from continuing operations attributable to Avient shareholders $ 64.4 $ 0.70 $ 60.0 $ 0.65
Special items, after tax $ 6.4 $ 0.07 $ 2.6 $ 0.03
APM pro forma adjustments 2.6 0.03 (3.1) (0.03)
Amortization expense, after tax 17.4 0.19 17.9 0.19
Adjusted pro forma net income / EPS $ 90.8 $ 0.98 $ 77.4 $ 0.84
Weighted average diluted shares 92.3 92.2
Three Months Ended
June 30, 2022
Three Months Ended
June 30, 2021
Reconciliation to Condensed Consolidated Statements of Income Avient EPS Avient EPS
Net income from continuing operations $ 62.8 $ 50.2
Net income attributable to noncontrolling interests — (0.6)
Net income from continuing operations attributable to Avient shareholders $ 62.8 $ 0.68 $ 49.6 $ 0.54
Special items, after tax $ 3.2 $ 0.03 $ 11.7 $ 0.13
APM pro forma adjustments 5.2 0.06 1.4 0.02
Amortization expense, after tax 17.2 0.19 17.8 0.19
Adjusted pro forma net income / EPS $ 88.4 $ 0.96 $ 80.5 $ 0.87
Weighted average diluted shares 92.1 92.4
Three Months Ended
September 30, 2021
Reconciliation to Condensed Consolidated Statements of Income Avient EPS
Net income from continuing operations $ 33.4
Net income attributable to noncontrolling interests 0.3
Net income from continuing operations attributable to Avient shareholders $ 33.7 $ 0.37
Special items, after tax $ 11.7 $ 0.13
APM pro forma adjustments 1.5 0.02
Amortization expense, after tax 17.6 0.19
Adjusted pro forma net income / EPS $ 64.5 $ 0.70
Weighted average diluted shares 92.2
Adjusted EPS may not recalculate due to rounding.
1
Three Months Ended
December 31, 2021
Year Ended
December 31, 2021
Reconciliation to Condensed Consolidated Statements of Income Avient EPS Avient EPS
Net income from continuing operations $ 11.2 $ 155.2
Net income attributable to noncontrolling interests 0.9 0.2
Net income from continuing operations attributable to Avient shareholders $ 12.1 $ 0.13 $ 155.4 $ 1.69
Special items, after tax $ 24.0 $ 0.26 $ 50.0 $ 0.54
APM pro forma adjustments 2.5 0.03 1.6 0.02
Amortization expense, after tax 17.8 0.19 71.1 0.77
Adjusted pro forma net income / EPS $ 56.4 $ 0.61 $ 278.1 $ 3.02
Weighted average diluted shares 92.4 92.1
Reconciliation of Color, Additives and Inks EBITDA
Q1 2021 Q2 2021 Q3 2021 Q4 2021 YTD 2021 Q1 2022 Q2 2022
Operating
Income 88.8 86.3 66.8 61.2 303.1 94.5 93.6
Depreciation and
amortization 27.4 25.3 26.6 26.4 105.7 26.0 25.9
EBITDA $ 116.2 $ 111.6 $ 93.4 $ 87.6 $ 408.8 $ 120.5 $ 119.5
Reconciliation of Specialty Engineered Materials EBITDA
Q1 2021 Q2 2021 Q3 2021
SEM
Pro
forma
APM
Pro
forma
SEM SEM
Pro
forma
APM
Pro
forma
SEM SEM
Pro
forma
APM
Pro
forma
SEM
Operating Income 32.6 9.1 41.7 35.8 13.9 49.7 30.0 15.2 45.2
Depreciation and
amortization 7.8 17.5 25.3 8.1 17.3 25.4 7.9 17.1 25.0
EBITDA $ 40.4 $ 26.6 $ 67.0 $ 43.9 $ 31.2 $ 75.1 $ 37.9 $ 32.3 $ 70.2
Reconciliation of Specialty Engineered Materials EBITDA
Q4 2021 YTD 2021
SEM
Pro
forma
APM
Pro
forma
SEM SEM
Pro
forma
APM
Pro
forma
SEM
Operating Income 27.1 11.7 38.8 125.5 49.9 175.4
Depreciation and amortization 8.0 18.9 26.9 31.8 70.8 102.6
EBITDA $ 35.1 $ 30.6 $ 65.7 $ 157.3 $ 120.7 $ 278.0
2
Reconciliation of Specialty Engineered Materials EBITDA
Q1 2022 Q2 2022
SEM
Pro
forma
APM
Pro
forma
SEM SEM
Pro
forma
APM
Pro
forma
SEM
Operating Income 38.3 15.4 53.7 35.2 17.7 52.9
Depreciation and amortization 7.8 16.6 24.4 7.7 16.6 24.3
EBITDA $ 46.1 $ 32.0 $ 78.1 $ 42.9 $ 34.3 $ 77.2
Reconciliation of Avient consolidated pro forma EBITDA
Q1 2021 Q2 2021 Q3 2021
Avient
Pro
forma
APM
Pro
forma
Avient Avient
Pro
forma
APM
Pro
forma
Avient Avient
Pro
forma
APM
Pro
forma
Avient
Net income from
continuing operations 60.4 (3.1) 57.3 50.2 1.4 51.6 33.4 1.5 34.9
Income tax expense 16.3 1.1 17.4 13.8 1.3 15.1 2.0 2.5 4.5
Interest expense 19.3 11.1 30.4 19.5 11.2 30.7 19.0 11.2 30.2
Depreciation and
amortization 36.9 17.5 54.4 33.6 17.3 50.9 36.6 17.1 53.7
EBITDA 132.9 26.6 159.5 117.1 31.2 148.3 91.0 32.3 123.3
Special items, before
tax 2.4 — 2.4 14.2 — 14.2 19.9 — 19.9
Depreciation included
in special items (0.6) — (0.6) 1.4 — 1.4 (0.9) — (0.9)
Adjusted EBITDA $ 134.7 $ 26.6 $ 161.3 $ 132.7 $ 31.2 $ 163.9 $ 110.0 $ 32.3 $ 142.3
Reconciliation of Avient consolidated pro forma EBITDA
Q4 2021 YTD 2021
Avient
Pro
forma
APM
Pro
forma
Avient Avient
Pro
forma
APM
Pro
forma
Avient
Net income from continuing operations 11.2 2.5 13.7 155.2 1.6 156.8
Income tax expense 16.2 (1.9) 14.3 48.3 3.7 52.0
Interest expense 17.5 11.1 28.6 75.3 44.6 119.9
Depreciation and amortization 37.9 18.9 56.8 145.0 70.8 215.8
EBITDA 82.8 30.6 113.4 423.8 120.7 544.5
Special items, before tax 20.6 — 20.6 57.1 — 57.1
Depreciation included in special items (1.6) — (1.6) (1.7) — (1.7)
Adjusted EBITDA $ 101.8 $ 30.6 $ 132.4 $ 479.2 $ 120.7 $ 599.9
3
Reconciliation of Avient consolidated pro forma EBITDA
Q1 2022 Q2 2022
Avient
Pro
forma
APM
Pro
forma
Avient Avient
Pro
forma
APM
Pro
forma
Avient
Net income from continuing operations 64.7 2.6 67.3 62.8 5.2 68.0
Income tax expense 20.0 1.7 21.7 22.7 1.4 24.1
Interest expense 16.9 11.1 28.0 16.2 11.1 27.3
Depreciation and amortization 37.6 16.6 54.2 36.3 16.6 52.9
EBITDA 139.2 32.0 171.2 138.0 34.3 172.3
Special items, before tax 6.6 — 6.6 0.9 — 0.9
Depreciation included in special items (2.1) — (2.1) (1.1) — (1.1)
Adjusted EBITDA $ 143.7 $ 32.0 $ 175.7 $ 137.8 $ 34.3 $ 172.1
Reconciliation of Specialty Engineered Pro Forma Sales
Q1 2021 Q2 2021 Q3 2021 Q4 2021 YTD 2021 Q1 2022 Q2 2022
Sales 214.7 238.9 231.7 226.3 911.6 243.1 242.3
Pro forma APM 98.9 108.8 93.8 94.9 396.4 94.8 100.5
Pro forma sales $ 313.6 $ 347.7 $ 325.5 $ 321.2 $ 1,308.0 $ 337.9 $ 342.8
Reconciliation of Avient Pro Forma Sales
Q1 2021 Q2 2021 Q3 2021 Q4 2021 YTD 2021 Q1 2022 Q2 2022
Sales 826.0 864.5 818.0 807.1 3,315.6 892.2 891.0
Pro forma APM 98.9 108.8 93.8 94.9 396.4 94.8 100.5
Pro forma sales $ 924.9 $ 973.3 $ 911.8 $ 902.0 $ 3,712.0 $ 987.0 $ 991.5
4
IR Slides
V17 - 9.26 324pm IR Deck - AVNT-2022.09.27 Pre Release v2
https://www.avient.com/sites/default/files/2020-08/polystrand-rome-snowboard-bindings-case-study-1.pdf
Ultimately, a Polystrand™
8-ply fiberglass reinforced PETG laminate overmolded in
nylon hit the sweet spot—providing just the right ratio of
flexibility and strength that makes the binding worthy of
a premium designation.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Seaport%2520Global%2520Transports%2520%2526%2520Industrials%2520Conference.pdf
A reconciliation of each non-GAAP financial measure with the most directly
comparable GAAP financial measure is attached to this presentation which is posted
on our website at www.polyone.com.
4 POLYONE CORPORATION
What We Do
Value
Formulation
Expertise Inputs
Base resins
Additives
Modifiers
Pigments
Expertise in
Polymer
Materials,
Services and
Solutions
OEMs
Brand Owners
Processers
Assemblers
Driving customer value with specialty products & services
Service
InVisiOSM Color
Services
IQ Design Labs
LSS Customer
First
POLYONE CORPORATION 5
2016 Revenue ($3.3 Billion) by Segment
At a Glance
United
States
65%
Europe
12%
Canada
8%
Asia
8%
Latin
America
7%
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
$2.13
2009 2010 2011 2012 2013 2014 2015 2016
2016 Revenue by Geography
2016 Revenue by End Market
Appliance
5%
Building &
Construction
11%
Consumer
11%
Electrical &
Electronics
5%
Healthcare
11%
Industrial
15%
Packaging
12% Textiles
2%
Transportation
19%
Wire &
Cable
9%
Adjusted Earnings Per Share
Performance
Products &
Solutions
19%
PolyOne
Distribution
31%
Designed
Structures
& Solutions
11% Specialty
Engineered
Materials
16%
Color
Additives
and Inks
23%
6 POLYONE CORPORATION
Returning Cash to Shareholders
$0.16
$0.20
$0.24
$0.32
$0.40
$0.48
$0.54
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
2011 2012 2013 2014 2015 2016 2017
Annual Dividend*
Since 2011, we have returned nearly $850 million to shareholders
$150 million returned through dividends
$697 million returned through share repurchases
$697M
$0
$150
$300
$450
$600
$750
2011 2012 2013 2014 2015 2016
Cumulative Share Repurchases
(in millions)
*Initiated in 2011
7 POLYONE CORPORATION
2%
43%
79%
0%
20%
40%
60%
80%
100%
2005 2010 2016
%
o
f O
pe
ra
tin
g
In
co
m
e*
*Operating Income excludes corporate charges and special items
Specialty OI $5M $87M $273M
Mix Shift Highlights Specialty Transformation
Specialty =
ROS > 10%
JV’s Performance Products & Solutions
Specialty Distribution
8 POLYONE CORPORATION
2006 2016 2020
“Where we were” “Where we are” Platinum Vision
Operating Income % of Sales
Color, Additives & Inks 1.7% 16.0% 20%+
Specialty Engineered Materials 1.1% 14.3% 20%+
Performance Products & Solutions 5.5% 11.1% 12 – 14%
Distribution 2.6% 6.4% 6.5 – 7.5%
Designed Structures & Solutions N/A -0.9% 8 – 10%
ROIC* 5.0% 12.9% 15%
Proof of Performance & 2020 Platinum Vision
*ROIC is defined as TTM adjusted OI after tax divided by the sum of average debt and equity less cash over a 5 quarter period
Consistently Deliver Double Digit Annual EPS Growth
POLYONE CORPORATION 9
2,883
2,538
2006 2016
Volume
(lbs in millions)
-12%
$103
$200
2006 2016
Commercial, R&D
and Marketing
Spending ($M)
+95%
$88
$317
2006 2016
Adjusted
Operating Profit ($M)
+263%
Ours is Not a Cost Cutting Story
10 POLYONE CORPORATION
Innovation Drives Earnings Growth
*Specialty Platform revenue from products introduced in last five years
$20
$54
2006 2016
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
33%
2006 2016
CAI & SEM
Gross Margin
12%
42%
2006 2016
Target ≥ 35%
Innovation Pipeline Potential
11 POLYONE CORPORATION
Primary Industries Served
2016 Revenue: $3.3 Billion
Electrical &
Electronic
5%
Building &
Construction
11%
Appliance
5%
Industrial
15%
Wire & Cable
9%
Healthcare
11%
Consumer
11%
Packaging
12%
Transportation
19%
Focus End Markets
12 POLYONE CORPORATION
Therma-Tech™ & Sheet
GEON™ Vinyl
Polymer Colorants
Therma-Tech™
TPE’s & Film
TPE + OnForce™
Gravi-Tech™
Page 12
Film
Target End Markets… Healthcare
13 POLYONE CORPORATION
Sound & Vibration
Management
Fuel Handling
Systems
Interior & Exterior Trim
Structural Braces
& Brackets
Interior Structural
Components
Lighting
Air management
Electronics & Cameras
Fluid Handling
Target End Markets… Automotive
Underhood
Components
Roof Systems
14 POLYONE CORPORATION
PreservaPak™
OnColor™
Smart Batch™
VersaFlex™
TPE Cap Liner
ColorMatrix™
Amosorb™
Oxygen Scavenger
ColorMatrix™
Ultimate™ UV
Light Barrier
OnCap™
Laser Marking
Additives
Target End Markets… Packaging
15 POLYONE CORPORATION
Source: Outdoor Industry Association
TPE Vibration Dampening
(SEM/GLS)
TPE + OnForce
(SEM)
OnForce
(SEM)
Advanced Composites
(SEM)
TPE Vibration Dampening
(SEM/GLS)
Thermoplastic Elastomers
(SEM)
Advanced Composites
(SEM)
Polymer Colorants
(CAI)
Sheet
(DSS)
TPE & Film
(SEM + DSS)
Advanced Composites
(SEM)
Polymer Colorants
(CAI)
Thermatech
(SEM)
Thermoplastic Elastomers
(SEM)
TPE + OnForce
(SEM)
OnForce
(SEM)
Target End Markets… Consumer
16 POLYONE CORPORATION
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
Expanding our sales,
marketing, and
technical capabilities
Investing in operational
and LSS initiatives
~60 - 70% of capital
expenditures fund
growth initiatives Organic
Growth
Acquisitions
Share
Repurchases
Dividends Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Growth synergies
Adjacent material
solutions
Repurchased 1.2
million shares in Q4
2016
Repurchased 18.8
million shares since
early 2013
8.5 million shares are
available for
repurchase under the
current authorization
Increased annual
dividend by 12.5% to
$0.54 per share,
representing the sixth
consecutive year of
dividend growth
POLYONE CORPORATION 17
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
https://www.avient.com/investor-center/news/polyone-barrier-technologies-enable-sustainability-and-recyclability-packaging
According to leading market research firms, in-demand barrier technologies affect not only shelf life, but also brand integrity, product aesthetics, lightweighting, and ultimately, recyclability.
This technology protects light-sensitive dairy products such as ultra-pasteurized milk and protein-enhanced yogurts from photo-induced degradation by providing 99.99% UV and visible-light blocking.
As a market leader in oxygen, light, and UV barrier solutions for the packaging market, we continue to develop technologies that enable manufacturers to achieve these goals."