https://www.avient.com/sites/default/files/2020-12/firecon-cpe-product-bulletin.pdf
Cable constructions using FireCon CPE formulations are suitable for the following UL Standards: UL 13 - Power-Limited Circuit Cables UL 44 - Thermoset-Insulated Wire and Cable UL 62 - Flexible Cords and Cables UL 1277 - Electrical Power and Control Tray Cables with Optional Optical-Fiber Members UL 2250 - Instrumentation Tray Cable KEY CHARACTERISTICS • Retains flexibility at temperatures below 0°C • Resistant to acids, alkalis, oils, fuels and chemical solvents • Excellent balance of physical properties • Suitable for VW1 and tray cable rated applications • Available in UV resistant grades • Available in custom colors MARKETS AND APPLICATIONS • Oil, gas and petroleum applications • Tray cable • Industrial cable • Low-voltage power cables • Medium-voltage power cables • Control cables • VW1 applications PRODUCT BULLETIN To learn more about FireCon CPE jacketing solutions, contact Avient at 1.844.4AVIENT www.avient.com FIRECON™ CPE 30-33 RoHS Black CPE 37-36 RoHS Black CPE 37-31 RoHS Black CPE 37-31 RoHS Natural Specific Gravity 1.31 1.38 1.39 1.39 MFI (190°C, 21.6 Kg) 15 22.4 34.3 34 Durometer Hardness 39D 31D 34D 34D Tensile Strength, PSI 1,499 2,200 2,096 1,800 Tensile Elongation (%) 350 300 325 300 UL Temperature Rating °C 90 90 90 90 LOI (% Oxygen) 30 37 37 37 Brittleness Temperature °C -33 -36 -31 -31 TECHNICAL PROPERTIES Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2020-11/syncure-xlpe-processing-guide.pdf
EXTRUDER Screw 1½" to 6" Polyethylene type—Maddock; 3:1 compression ratio Tooling Pressure type Die On size with 1/8" or less land L/D 24:1 or higher Screen Pack 20/60/60/20 Mesh Cooling Trough Hot 120–150° F (50–65° C) Feeder Gravimetric type—3 compartment (for color) Drying Conditions, Catalyst Only Desiccant type, 4 hours at 140° F (60° C) PROCESSING Temperature Wire Preheat 180–250° F (110–120° C) Feed Zones 330° F (165° C) Transition 340° F (170° C) Metering 350° F (177° C) Head/ Die 360° F (182° C) Target Melt 350–380° F (177–190°C) Flame at Die Tip Yes Line Speed Higher line speed improves mixing and surface smoothness Purge Compound HDPE To learn more about Syncure XLPE wire and cable solutions, contact us at +1.844.4AVIENT (1-844.428.4368) www.avient.com Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2024-10/Edwards Ballistic Panel Case Study.pdf
Avient collaborated with Edwards to develop ballistic- resistant panels that were not only compatible with the required hardware but also met color requirements for better visual cover once deployed.
https://www.avient.com/sites/default/files/2024-06/ECCOH 5981 for Teck 90 Cables Product Bulletin.pdf
KEY CHARACTERISTICS • Smoke mitigation • Flame resistance • Passes -40° cold impact testing • Crush resistance • UV resistance • Suitable for CSA Teck 90 specification • Excellent tensile strength (2,910 psi) • Natural grades for easy colorability MARKETS & APPLICATIONS This LSFOH thermoplastic meets critical requirements for low-voltage, armored cable jackets.
https://www.avient.com/sites/default/files/2023-08/AVNT August IR Presentation w NonGAAP Recs%5B40%5D.pdf
& Canada EMEA Asia Latin America 64% 36% Specialty Engineered Materials Color Additives and Inks 40% 37% 18% 5% 6% 8% 24% 20% 10% 15% 9% 4% 4% Defense Healthcare Packaging Consumer Building & Construction Industrial Transportation Energy Telecom 4 CREATING A WORLD-CLASS SUSTAINABLE ORGANIZATION 1. 6.5% annualized long term sales growth leveraging sustainable solutions, composites, healthcare and emerging regions 2.
Q 1 2 0 2 3 -8% +6% -1% Flat 14 US & Canada Latin America EMEA Asia Total Avient -2.6% 2023 G U IDA N CE $128 $525 Q3 FY $0.56 $2.40 Q3 FY 2023 GUIDANCE 16 $800 $3,280 Q3 FY Sales Adjusted EBITDA Adjusted EPS (in millions) (in millions) 17 • Focused on working capital management, restructuring actions to streamline operations • IT investment to further integrate acquired businesses and capture operational efficiencies • Preserve Free Cash Flow to maintain net leverage CASH FLOW / LEVERAGE ($ millions) 2023E Cash Flow from Operating Activities 320$ Less: CapEx (140) Free Cash Flow 180$ Adjusted EBITDA 525$ Net Debt / Adjusted EBITDA 3.0x SUSTAINABILITY AS A GROWTH DRIVER 18 LONG-TERM REVENUE GROWTH DRIVERS Revenue From Sustainable Solutions* 2016-2022 $340M $405M $455M $550M $790M $915M 2016 2017 2018 2019 2020PF** 2021 2022PF*** $1,175M *Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”) **2020 is Pro Forma to include full year of the Clariant Color business ***2022 is Pro Forma for the acquisition of Avient Protective Materials and the divestiture of Distribution 60%+ Key Growth Drivers Sustainable Solutions Composites, Healthcare, Asia / LATAM Overlap Other (GDP Growth) Total Company Revenue SUSTAINABILITY REPORT 2022 • Provides progress on 2030 goals • Reaffirms commitment to U.N.
Avient 2011 and 2018 valuations reflect trailing 12 months EBITDA at December 31 of the respective years. 28 EV / 2023E EBITDA Historic Multiple 6.5 8.3 9.5 13.8 12.7 12.6 11.3 8.7 18.6 16.5 10.1 10.0 9.7 9.5 9.4 8.7 A vi en t (2 01 1) A vi en t (2 01 8) A vi en t (2 02 3) R P M P P G A V Y K W R F U L E C L H X L F M C A S H S C L H U N C E E M N Avient Specialty Formulators Other Specialty / Chemical Companies SEGMENT DATA U.S. & Canada 40% EMEA 37% Asia 18% Latin America 5% 2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 20% Packaging 24% Industrial 15% Building and Construction 10% Telecommunications 4% Energy 4% Defense 6% END MARKET REVENUE $2,355M $402M $1,300M $272M Sales EBITDA Specialty Engineered Materials Color Additives and Inks $592M$3,653M (1) Transportation 9% Healthcare 8% 30 (1) Total company sales and adjusted EBITDA of $3,653M and $592M, respectively, include intercompany sales eliminations and corporate costs 2022 REVENUE | $2 .4 B ILL ION US & Canada 34% EMEA 38% Asia 20% Latin America 8% END MARKET REGION 31 Packaging 34% Consumer 21% Healthcare 8% Industrial 15% Transportation 8% Building & Construction 11% Telecommunications 1% Energy 2% COLOR, ADDITIVES & INKS 2022 PRO FORMA REVENUE | $1 .3 B ILL ION US & Canada 52% EMEA 35% Asia 13% 32 Packaging 5% Consumer 19% Healthcare 8%Industrial 16% Transportation 10% Telecommunications 10% Energy 9% Defense 15% Building & Construction 8% END MARKET REGION SPECIALTY ENGINEERED MATERIALS Packaging 32% Consumer 27% Healthcare 8% Industrial 14% Building & Construction 5% Telecommunications 3% Energy 1% Defense 1% Asia (18% of sales) Transportation 9% 2022 PROFORMA AVIENT REGIONAL SALES Packaging 27% Consumer 14% Healthcare 5% Industrial 17% Building & Construction 10% Energy 5% Defense 8% EMEA (37% of sales)Transportation 11% Packaging 13% Consumer 24% Healthcare 12% Industrial 15% Building & Construction 13% Energy 5% Defense 5% US & Canada (40% of sales) Transportation 7% Packaging 56% Consumer 23% Healthcare 4% Industrial 7% Building & Construction 4% Telecommunications 1% LATAM (5% of sales) Transportation 5% Telecommunications 3% Telecommunications 6% 33 BY END MARKET Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special items, to assess performance and facilitate comparability of results.
https://www.avient.com/sites/default/files/2023-02/AVNT Q4 2022 Earnings Press Release-1.pdf
This includes restructuring actions to accelerate the remaining synergies associated with the Clariant Color acquisition, particularly in Europe.”
Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Sales: Color, Additives and Inks $ 490.8 $ 581.3 $ 2,355.0 $ 2,401.6 Specialty Engineered Materials 300.8 226.3 1,044.4 911.6 Corporate (1.2) (0.5) (2.5) 2.3 Sales $ 790.4 $ 807.1 $ 3,396.9 $ 3,315.5 Gross margin: Color, Additives and Inks $ 134.5 $ 164.5 $ 681.3 $ 727.5 Specialty Engineered Materials 82.4 58.3 283.7 250.9 Corporate (44.9) (6.2) (82.3) (34.6) Gross margin $ 172.0 $ 216.6 $ 882.7 $ 943.8 Selling and administrative expense: Color, Additives and Inks $ 90.2 $ 103.3 $ 380.3 $ 424.4 Specialty Engineered Materials 47.2 31.2 143.6 125.4 Corporate 34.2 31.9 115.5 114.3 Selling and administrative expense $ 171.6 $ 166.4 $ 639.4 $ 664.1 Operating income: Color, Additives and Inks $ 44.3 $ 61.2 $ 301.0 $ 303.1 Specialty Engineered Materials 35.2 27.1 140.1 125.5 Corporate (79.1) (38.1) (197.8) (148.9) Operating income $ 0.4 $ 50.2 $ 243.3 $ 279.7 14 Attachment 7 Avient Corporation Reconciliation of Non-GAAP Financial Measures (Unaudited) (In millions, except per share data) Senior management uses gross margin before special items and operating income before special items to assess performance and allocate resources because senior management believes that these measures are useful in understanding current profitability levels and how it may serve as a basis for future performance.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Goldman%2520Sachs%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% 14.9% 12 – 16% Global Specialty Engineered Materials 1.1% 12.1% 12 – 16% Designed Structures & Solutions -- 7.6% 8 – 10% Performance Products & Solutions 5.5% 8.1% 9 – 12% Distribution 2.6% 6.2% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 65% 65 – 75% 3) ROIC* 5.0% 10.6% 15% 4) Adjusted EPS Growth N/A 37% Double Digit Expansion Proof of Performance & 2015 Goals *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period PolyOne Corporation Page 10 32% Adjusted EPS CAGR from 2011 2015 EPS: $2.50 2011 EPS: $0.82 Continued Gross Margin Expansion Mergers & Acquisitions Spartech Accretion Incremental Share Buybacks Ongoing LSS Programs (50-100 bps/yr) Accelerated Innovation & Mix Improvement Several Levers to Drive Growth Mid Single Digit Revenue Growth PolyOne Corporation Page 11 Innovation Drives Earnings Growth *Percentage of Specialty Platform revenue from products introduced in last five years $20 $53 2006 2013 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 31% 2006 2013 Specialty Platform Gross Margin % 20% 43% 2006 2013 Specialty Vitality Index Target ≥ 35% Vitality Products + 700 to 1000 bps PolyOne Corporation Page 12 Prototype Frame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 4 11 5 10 6 9 3 4 2 15 9 1 10 4 Breakthrough Platform Derivative A Rich Pipeline of Opportunity Number of Projects 25 14 19 17 18 93 Addressable Market ($ millions) TBD TBD $800 $450 $450 $1,700 PolyOne Corporation Page 13 Megatrends Aligned with Key End Markets Decreasing Dependence on Fossil Fuels Protecting the Environment Improving Health and Wellness Megatrend End Markets Globalizing and Localizing Health & Wellness Transportation Packaging Consumer PolyOne Corporation Page 14 60% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2014 Pension Funding** As of September 30, 2014 Debt Maturities & Pension Funding – 9/30/14 Net Debt / EBITDA* = 1.7x $48 $317 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Debt Maturities As of September 30, 2014 ($ millions) Coupon Rates: 7.500% 7.375% 5.250% ** includes US-qualified pension plans only *TTM 9/30/2014 PolyOne Corporation Page 15 Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return Expanding our sales, marketing, and technical capabilities Targets that expand our: • Specialty offerings • End market presence • Geographic footprint • Operating Margin Synergy opportunities Adjacent material solutions Repurchased 1.5 million shares in Q3 2014 Repurchased 9.7 million shares since early 2013 10.3 million shares are available for repurchase under the current authorization Organic Growth Acquisitions Share Repurchases Dividends Investing in operational and LSS initiatives (including synergy capture) Manufacturing alignment $0.16 $0.20 $0.24 $0.32 $0.40 $0.10 $0.20 $0.30 $0.40 $0.50 2011 2012 2013 2014 2015 Annual Dividend PolyOne Corporation Page 16 PolyOne Core Values Innovation Collaboration Excellence PolyOne Corporation Page 17 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
Platform operating income mix percentage 2005Y* 2008Y* 2010Y* 2013Y Q3 2014 YTD Global Color, Additives and Inks $ 4.3 $ 28.1 $ 37.7 $ 104.0 $ 98.2 Global Specialty Engineered Materials 0.4 17.6 49.7 57.2 55.6 Designed Structures and Solutions - - - 33.4 37.2 Specialty Platform $ 4.7 $ 45.7 $ 87.4 $ 194.6 $ 191.0 Performance Products and Solutions 75.7 31.3 54.0 56.0 51.4 Distribution 19.5 28.1 42.0 63.3 53.2 Joint ventures 91.9 28.6 18.9 - - Corporate and eliminations (51.5) (425.1) (27.7) (82.4) (126.2) Operating income (loss) GAAP $ 140.3 $ (291.4) $ 174.6 $ 231.5 $ 169.4 Less: Corporate operating expense 51.5 425.1 27.7 82.4 126.2 Operating income excluding Corporate $ 191.8 $ 133.7 $ 202.3 $ 313.9 $ 295.6 Specialty platform operating mix percentage 2% 34% 43% 62% 65% * Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
https://www.avient.com/sites/default/files/resources/FAQs%2520for%2520PolyOne%2520GHS%2520Requirements%2520Ver%252006%2520April%25202015.pdf
OSHA has stated that it will not implement enforcement of the new labeling requirements in the U.S. until December 2015 to allow the logistics of implementing new color labeling.
As June 2015 approaches, pictograms where necessary will display in color on both SDSs and product labels.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520Wells%2520Fargo%252005%252008%25202014%2520w%2520non%2520GAAP.pdf
Use of Non-GAAP Measures Page 3 PolyOne Commodity to Specialty Transformation • Volume driven, commodity producer • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures 2000-2005 2006 - 2009 2010 – 2014 2015 and beyond • Steve Newlin appointed, Chairman, President and CEO • New leadership team appointed • Implementation of four pillar strategy • Focus on value based selling, investment in commercial resources and innovation to drive transformation • 18 consecutive quarters of double- digit adjusted EPS growth • Shift to faster growing, high margin, less cyclical end markets • Key acquisitions propel current and future growth, as well as margin expansion • Established aggressive 2015 targets • Continue specialty transformation • Targeting $2.50 Adjusted EPS by 2015, nearly double 2013 EPS • Drive double digit operating income and adjusted EPS growth Confirmation of Our Strategy The World’s Premier Provider of Specialized Polymer Materials, Services and Solutions Specialization Globalization Operational Excellence Commercial Excellence -150.00% -50.00% 50.00% 150.00% 250.00% 350.00% 450.00% PolyOne S&P 500 Russell 2000 Dow Jones Chemical All time high of $39.28 April 4th, 2014 • 18 consecutive quarters of double digit EPS growth • 49% CAGR adjusted EPS expansion 2006-2013 • 2013 stock price increased 73% versus 30% growth in the S&P • More than seven fold increase in market cap: $0.5b $3.6b Strategy and Execution Drive Results Page 6 Appliance 4% Building & Construction 13% Wire & Cable 9% Electrical & Electronics 5% Consumer 10%Packaging 16% Industrial 12% HealthCare 11% Transportation 18% Misc. 2% 0.12 0.27 0.21 0.13 0.68 0.82 1.00 1.31 2.50 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 $2.50 2006 2007 2008 2009 2010 2011 2012 2013 2015 Target Ad ju st ed E ar ni ng s P er S ha re 2013 Revenues: $3.8 Billion End Markets 2013 Revenues: $3.8 Billion EPS Page 7 PolyOne At A Glance United States 67% Europe 14% Canada 7% Asia 6% Latin America 6% Specialty 54% PP&S 18% Distribution 28% Mix Shift Highlights Specialty Transformation Page 8 Old PolyOne Transformation *Operating Income excludes corporate charges and special items 2% 34% 43% 62% 64% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2013 Q1 2014 2015 % o f O pe ra tin g In co m e* JV's Performance Products & Solutions Distribution Specialty 65-75% Specialty OI $5M $46M $87M $195M $60M Target 2015 Target Proof of Performance & 2015 Goals Page 9 2006 Q1 2014 2015 “Where we were” “Where we are” Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 13.8% 12 – 16% Global Specialty Engineered Materials 1.1% 11.6% 12 – 16% Designed Structures & Solutions -- 6.5% 8 – 10% Performance Products & Solutions 5.5% 7.7% 9 – 12% Distribution 2.6% 6.1% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 64% 65 – 75% 3) ROIC* (after-tax) 5.0% 9.4% 15% 4) Adjusted EPS Growth N/A 42% Double Digit Expansion *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period 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 Innovation Drives Earnings Growth $20.3 $52.3 2006 2013 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* *Percentage of Specialty Platform revenue from products introduced in last five years Page 11 14.3% 30.7% 2006 2013 Specialty Platform Gross Margin % 19.5% 42.0% 2006 Q1 2014 Healthcare Consumer Packaging and Additive Technology Transportation Page 12 Unique and Innovative Solutions https://www.dropbox.com/sh/dwe4t8aacvhb8ui/uD3p_bdglP/Presentation revise pics/GLS Beverage can closure XO 2.jpg https://www.dropbox.com/sh/dwe4t8aacvhb8ui/-YgkycKypw/Anti-Counterfeiting release & images/GN1979.JPG 60% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2014 Pension Funding** As of March 31, 2014 Debt Maturities & Pension Funding – 3/31/14 Net Debt / EBITDA* = 1.9x $48 $317 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Debt Maturities As of March 31, 2014 ($ millions) Coupon Rates: 7.500% 7.375% 5.250% ** includes US-qualified pension plans only *TTM 3/31/2014 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 Investing in operational and initiatives that drive profitability growth Manufacturing realignment Targets that expand our: • Specialty offerings • End market presence • Geographic footprint • Operating Margin Synergy opportunities Adjacent material solutions Repurchased 1.4 million shares in Q1 2014 Repurchased 6.4 million shares since April 2013 13.6 million shares are available for repurchase under the current authorization Organic Growth Acquisitions Share Repurchases Dividends The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
Platform operating income mix percentage 2005Y* 2008Y* 2010Y* 2013Y 2014 Q1 Global Specialty Engineered Materials $ 0.4 $ 17.6 $ 49.7 $ 57.2 $ 18.3 Global Color, Additives and Inks 4.3 28.1 37.7 104.0 30.4 Designed Structures and Solutions - - - 33.4 11.2 Specialty Platform $ 4.7 $ 45.7 $ 87.4 $ 194.6 $ 59.9 Performance Products and Solutions 75.7 31.3 54.0 56.0 16.0 Distribution 19.5 28.1 42.0 63.3 17.2 SunBelt Joint venture 91.9 28.6 18.9 - - Corporate (51.5) (425.1) (27.7) (82.4) (36.7) Operating income (loss) GAAP $ 140.3 $ (291.4) $ 174.6 $ 231.5 $ 56.4 Less: Corporate operating expense 51.5 425.1 27.7 82.4 36.7 Operating income excluding Corporate $ 191.8 $ 133.7 $ 202.3 $ 313.9 $ 93.1 Specialty platform operating mix percentage 2% 34% 43% 62% 64% * 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-%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 Q3 2014 YTD Global Color, Additives and Inks $ 4.3 $ 28.1 $ 37.7 $ 104.0 $ 98.2 Global Specialty Engineered Materials 0.4 17.6 49.7 57.2 55.6 Designed Structures and Solutions - - - 33.4 37.2 Specialty Platform $ 4.7 $ 45.7 $ 87.4 $ 194.6 $ 191.0 Performance Products and Solutions 75.7 31.3 54.0 56.0 51.4 Distribution 19.5 28.1 42.0 63.3 53.2 Joint ventures 91.9 28.6 18.9 - - Corporate and eliminations (51.5) (425.1) (27.7) (82.4) (126.2) Operating income (loss) GAAP $ 140.3 $ (291.4) $ 174.6 $ 231.5 $ 169.4 Less: Corporate operating expense 51.5 425.1 27.7 82.4 126.2 Operating income excluding Corporate $ 191.8 $ 133.7 $ 202.3 $ 313.9 $ 295.6 Specialty platform operating mix percentage 2% 34% 43% 62% 65% * Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.