https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520RW%2520Baird%2520Conference%2520w%2520non-GAAP.pdf
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
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-%2520KeyBanc%2520Conference%2520w%2520nonGAAP.pdf
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/2024-03/Alternatives to Nylon 6_6 Brochure %281%29.pdf
HOW ALTERNATIVE
POLYMERS COMPARE
TO PA 6,6
PA 6 | POSSIBLE APPLICATIONS:
Automotive, Industrial, Consumer & Sporting Goods
Wider processing temperature range
Better surface quality
Better weathering resistance
Shorter conditioning time—nearly half that of PA 6,6
Lower temperature resistance
Slightly lower chemical resistance
Higher water absorption
Lower stiffness/wear resistance
PK | POSSIBLE APPLICATIONS:
Automotive, Consumer & Sporting Goods, Industrial,
Electrical & Electronics
Lower CO2 emissions in production
Better hydrolysis and chemical resistance
Comparable dimensional stability
Inherently lubricious for reduced wear and friction
Easier to mold
Cost competitive
Lower short- and long-term thermal performance
Harder to color
More limited process window
PBT/PET | POSSIBLE APPLICATIONS:
Electrical & Electronics
Lower water absorption
Slightly higher rigidity/stiffness (for PBT)
Better abrasion resistance
Slightly better electric resistance
Lower toughness properties
Higher density
Lower short- and long-term temperature resistance
Lower hydrolysis resistance
PP | POSSIBLE APPLICATIONS:
Automotive, Consumer Goods,
Lightweighting Applications
Lower water absorption
Slightly better chemical resistance
Lower density
Cost effective
Fiber reinforced PP can achieve similar or
better mechanical properties to PA 6,6 GF30
Reduced rigidity/stiffness
Much lower abrasion resistance
Lower electric resistance
Reduced short- and long-term temperature
resistance
PC/PBT & PC/PET BLENDS |
POSSIBLE APPLICATIONS: Automotive Interiors,
Consumer Goods, Household Appliances
Higher impact strength
Good scratch resistance
Good wear resistance
Lower mechanical properties
Higher brittleness
Narrow processing temperature range
PA 6,6/PET BLENDS |
POSSIBLE APPLICATIONS: Automotive, Industrial,
Appliance, Electrical & Electronics, Applications Where
Low Water Absorption is Required
Reduced water absorption—up to 40%
Slightly higher mechanical properties in the conditioned state
Slightly lower temperature resistance
Slightly lower chemical resistance
Narrow processing temperature range
PA/PP BLENDS | POSSIBLE APPLICATIONS:
Automotive Interiors, Electronics,
Consumer & Sporting Goods
Good adhesion to polyolefin-based TPEs
Low permeability of water
Good processability
Lower density
Lower temperature resistance
Lower mechanical properties
POST-INDUSTRIAL RECYCLED SOLUTIONS
(PA 6,6/PA 6/PP) |
POSSIBLE APPLICATIONS: Automotive Accessories,
Industrial, Consumer & Sporting Goods
Between 50-80% recycled content
Good processability
Cost effective
Reduced chemical resistance
Wider range of mechanical specifications
Potential for slightly lower mechanical properties
1.844.4AVIENT
www.avient.com
Copyright © 2024, Avient Corporation.
https://www.avient.com/sites/default/files/2022-11/Polystrand R Recycled Polyester Composite Tape and Laminates Product Bulletin.pdf
KEY
CHARACTERISTICS
GRADE
NAME
AREAL
WEIGHT
lb/ft2
NOMINAL
THICKNESS
in
TENSILE
MODULUS
ksi
FLEXURAL
STRENGTH
ksi
COMMENTS
> 95% PCR*
recycled
PET resin,
58% glass fiber
Polystrand™ R
5840B 0.0903 0.09 4400 ~80
Equivalent to
standard PETG,
APET; Black
* Resin source is 100% Post Consumer Recycled (PCR) content, but overall recycled content may vary based on color, additives, etc.
https://www.avient.com/sites/default/files/2021-06/fl.us-.datasheet-carbon-fiber.pdf
They also add important characteristics, such as
SWELLCOAT® water-blocking, water repellence, adhe-
sion, color, and wear and UV-resistance to these and
many other applications.
https://www.avient.com/sites/default/files/2024-06/Cesa Flame Retardant Product Selection Guide %281%29.pdf
CESA FLAME RETARDANT ADDITIVES – STANDARD OFFERINGS
Cesa Flame Retardant Additives can be used in combination with other colorants or additives, and formulations can be customized for most
applications.
https://www.avient.com/sites/default/files/2021-06/fl.datasheet-kevlarr-distribution-program.pdf
They also add important characteristics, such as
SWELLCOAT® water-blocking, water repellence, adhe-
sion, color, and wear and UV-resistance to these and
many other applications.
https://www.avient.com/sites/default/files/2020-07/sem-w-c-solutions-for-optical-fiber-cable-product-bulletin-a4.pdf
KEY CHARACTERISTICS
• Faster processing speeds (up to 1,000
m/min) at low wall thickness (100 µm)
• Increased chemical resistance
• Lower gel migration
• ECCOH 6153 UV - optimized for Teroson
• ECCOH 6154 UV - optimized for Unigel
• High color rendition and compatibility with
Avient masterbatch
• High UV resistance
• Very low shrinkage
MARKET & APPLICATIONS
Optical Fiber Cables including:
• Stranded loose tubes – gel-filled/dry
• Micro-modules
• Tight buffer applications – gel-filled/dry
STANDARD COMPLIANCE
• IEC 60794
• NF XP C93-850-1-1:2020
• EN 50289-4-17:2016
• ISO 4892:2016
• ST/CNET/5843 (1998)
PRODUCT BULLETIN
GEL MIGRATION PERFORMANCE
ECCOH LSFOH 6153/6154 UV grades offer greater gel migration performance compared to alternative
ECCOH grades.
https://www.avient.com/sites/default/files/2020-11/eccoh-product-selection-guide-en.pdf
Continuous Use Temp °C 90°C 90°C 105°C 90°C 125°C 90°C 90°C 105°C
SMOKE DENSITY (MAX)
Flaming Mode 45 104 312 163 312 118 98 60 101 121
Non-Flaming Mode 212 279 303 416 297 369 296 223 296 393
FEATURES
ESCR x
Flame Performance x x x x x
Heat Resistance x x x
High Char Forming x
Low Temperature
Performance x x
Mechanical Properties x x x
Oil Resistance x
UL Listed Halogen-Free x x x
FEATURES
Wire and Cable
• Highly flame retardant
• Very low toxicity and smoke density
• Many grades are cross-linkable
• Can be processed with color or additive
concentrate, and with UV stabilizer
Pipe and Fittings
• Highly flame retardant
• Very low toxicity and smoke density
• Suitable for extrusion, injection molding
ECCOH™
ECCOH™ non-halogenated formulations
re designed to be highly flame retardant
with extremely low toxicity and smoke
density.
https://www.avient.com/sites/default/files/2021-04/bergamid-seat-fastener-case-study.pdf
HellermannTyton decided to develop the seat securement
part using injection-molded Bergamid resin in a standard
black color.