https://www.avient.com/sites/default/files/2021-06/avient-ir-presentation-may-2021-w-non-gaap-recs.pdf
Clariant Masterbatch performance will be included in this year’s report. 2021 Sustainalytics ESG Risk Ranking Newsweek Most Responsible Companies 2016 2017 2018 2019 2020PF VOC Reduction Reduced Energy Use Bio-derived Content Eco-conscious Renewable Energy Applications Recyclability Reduced Material Requirements Lightweighting $275M $325M $355M $410M $560M 9 (1) Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”) (2) 2020 is Pro forma to include full year of the Clariant Masterbatch business (2) Revenue from Sustainable Solutions 2016 – 2020 (1) SUSTAINABILITY FOR A BETTER TOMORROW 10 • Revenue from sustainable solutions expected to grow 11% in 2021 as our innovation efforts and collaboration with customers continues to accelerate • Relentless focus on delivering our 2030 sustainability targets to benefit the planet and people of the world while adding value to our customers, communities, associates and shareholders • Investments centered around innovation and global sustainability megatrends o Improving Recyclability – Technologies that allow for increased use of post-consumer recycled (PCR) material o Light-weighting – Composites and CAI applications to reduce weight and material requirements, which minimize energy and carbon emissions o Eco-Conscious – Health and human safety applications as well as Avient’s alternative materials to replace lead, PVC, halogens, BPA and other less eco-friendly options o Avient CycleWorks – New innovation center dedicated to advancing recycling and the circular economy through collaboration with customers and brand owners Enable 100% of products manufactured for packaging applications to be recyclable or reusable.
Even more, our manufacturing capabilities are flexible and easily adaptable to changing customer needs.
Whether an additional line at an existing manufacturing plant, or a new facility in a growing region, we ramp-up quickly and cost-efficiently. 26 Capex / Revenue 2021E (%) AVIENT IS ASSET LIGHT Avient Specialty Formulators Other Chemical/Specialty Companies 2 3 2 2 2 3 3 4 3 3 3 4 4 5 5 5 6 7 7 8 24 A vi en t A vi en t (E xc l.
https://www.avient.com/investor-center/news/avient-announces-second-quarter-2024-results
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 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.
Proceeds from plant closures
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Morgan%2520Stanley%2520Conference.pdf
T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y Growing leadership position in attractive markets Innovation, technology and service are differentiators Capital management is a strength: Record-setting cash generation to continue for years Expand ROIC while increasing invested capital Proven acquisition strategy with robust pipeline Commercial investments are fueling momentum and generating organic growth SERVICE: T H E T I M E L E S S D I F F E R E N T I A T O R PolyOne Corporation 29 T A L E N T D E V E L O P M E N T PolyOne Corporation 30 Leadership Program Participants 2012 2013 2014 2015 47 0 86 2016 2017 125 169 216 Campus Hires 2008 2011 2014 2017 0 25 90 47 PolyOne LSS Blackbelts 2008 2011 2014 2017 0 67 202 147 A U N I Q U E C U S T O M E R E X P E R I E N C E Industrial Design IQ DESIGN LABS PolyOne Corporation 31 Material & Color Expertise Manufacturing Expertise 3 14 2014 2017 Industrial designers $0 $7M 2014 2017 $4M $40M 2014 2017 Opportunity funnel New business revenue LSS CUSTOMER FIRST PolyOne Corporation 32 Customer Projects Enables sales growth by building more intimate customer relationships, giving us insight to customers’ needs, with a service that is not easily replicated 2014 2017 2 85 3 D P R I N T I N G B R I N G I N G N E W I D E A S T O L I F E PolyOne Corporation 33 Enables validation of fit and function Shortens design cycle and time to market Avoids tooling rework Drives innovation Delivers substantial customer value PolyOne Corporation 34 From concept to production M O N T H M O N T H M O N T H M O N T H M O N T H M O N T H 99.9% Reduction in turnaround time Traditional Timeline up to 24 weeks PolyOne ColorMatrix Select™ 6 hours Innovative system for processors and OEMs to develop colors in real time Complete system that provides customers with the freedom to match, prototype and produce color entirely within their own facility C O L O R M A T R I X S E L E C T ™ “Being able to create color and produce parts in 1 day is unheard of in this industry” -CEO, Industry Leader I N N O V A T I N G W I T H P O L Y O N E PolyOne Corporation 35 SEGMENT HIGHLIGHTS C O L O R , A D D I T I V E S & I N K S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 36 Solid Colorants Performance Additives Screen Printing Inks Liquid Colorants Packaging 27% Industrial 14% Textiles 12% Building & Construction 10% Wire & Cable 10%Transportation 8% Consumer 7% Healthcare 6% Electrical & Electronics 3% Appliance 3% Operating Income & MarginRevenue by Region C O L O R , A D D I T I V E S & I N K S 2 0 1 7 R E V E N U E | $ 8 9 3 M I L L I O N $4 $25 $104 $139 0.9% 5.5% 12.2% 15.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20 30 40 50 60 70 80 90 100 110 120 130 140 150 2005 2009 2013 2017 PolyOne Corporation 37 Europe 32% United States 46% Asia 15% Canada 1% Mexico 4% Brazil 2% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 38 Engineered Formulations Advanced Composites Thermoplastic Elastomers Consumer 20% Transportation 19% Wire & Cable 13% Healthcare 11% Industrial 8% Packaging 7% Appliance 4% Building & Construction 3% Electrical & Electronics 15% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S Revenue by Region Operating Income & Margin 2 0 1 7 R E V E N U E | $ 6 2 4 M I L L I O N PolyOne Corporation 39 $21 $57 $76 0.1% 5.1% 9.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 20 30 40 50 60 70 80 2005 2009 2013 2017 Europe 28% United States 48% Asia 22% Canada 2% 12.1% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 40 Specialty Vinyl Solutions Healthcare Formulations Smart Device Materials Flame Retardant Polymers Building & Construction 30% Industrial 18% Transportation 16% Wire & Cable 15% Appliance 7% Packaging 5% Consumer 5% Electrical & Electronics 3% Healthcare 1% Asia 2% United States 77% Mexico 5% Canada 16% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S Operating Income & MarginRevenue by Region 2 0 1 7 R E V E N U E | $ 7 2 1 M I L L I O N $40 $33 $56 $77 4.6% 3.6% 7.2% 10.7% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 0 10 20 30 40 50 60 70 80 90 100 2005 2009 2013 2017 PolyOne Corporation 41 $886 $668 $773 $721Sales D I S T R I B U T I O N E N D M A R K E T S & S U P P L I E R S PolyOne Corporation 42 Transportation 23% Healthcare 22% Industrial 18% Consumer 15% Appliance 7% Electrical & Electronics 6% Building & Construction 4% Packaging 3% Wire & Cable 2% $20 $25 $63 $73 2.9% 4.0% 5.9% 6.3% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 15 25 35 45 55 65 75 2005 2009 2013 2017 Operating Income & Margin2017 Revenue | $1.2 Billion http://www.polyone.com/Pages/VariationRoot.aspx http://www.polyone.com/Pages/VariationRoot.aspx T A R G E T E N D M A R K E T S & A P P L I C A T I O N E X A M P L E S PolyOne Corporation 43 Thermally Conductive Technologies Chemical Resistant Technologies Polymer Colorants Elastomeric Grips and Handles Structural Composites Antimicrobial Technologies Anti-Counterfeiting Technologies Target End Markets… Healthcare Catheter Technologies Under-hood Components Target End Markets… Automotive Interior Structural Components Sound & Vibration Management Roof Systems Air Management Electronics and Cameras Lighting Exterior / Interior Trim Braces & Brackets Fasteners Seals & Flaps Target End Markets… Consumer Thermally Conductive Components Polymer Colorants Elastomeric Grips and Handles Structural Composite Components Oxygen Scavenger Technologies Laser Marking Additives Antistatic Technologies UV Light Barrier Technologies Cap & Closure Colorants Process Optimization Technologies Antioxidant Technologies Density Modified Technologies Target End Markets… Packaging Impart weight, sound and metallic finish to caps and closures for cosmetics and spirits applications Elevate quality and prestige perceptions among high-end consumers Eliminate time and cost associated with secondary operations and assembly Luxury Packaging GravitechTM Density Modified Polymers Eliminate costs by increasing pigment density Enhance color performance without altering form and formulation Increase design capabilities by reducing weight and layer thickness Optimize Color Usage OnColorTM Super Concentrates Inhibit microbial growth on polymer surfaces Enhance value or products and devices Highly versatile concentrate with the ability to be incorporated into a wide variety of products Combat Bacteria Formation WithStandTM Antimicrobial Technology Durable, long-lasting products stand up to the most aggressive disinfectants Minimize environmental stress cracking and discoloration One of the broadest medically approved polymer and colorant portfolios Medical Device Housings Chemically Resistant Engineered Polymers Color & Design Services Greater control of color development and supply chain Work across entire design process from concept to commercialization Inspire creativity in the use of polymer materials, colors, and effects Innovative brand differentiation Faster development timelines 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 ColorMatrix Fiber Colorant Solutions Proprietary advanced liquid color formulations and equipment enable greater efficiency and productivity Eliminates aqueous dyeing and its associated wastewater treatment Solid Color Concentrates Extrusion-spun fibers colored via solid masterbatch Fiber Colorants High flame retardancy to meet strict UL standards Greater processing and design flexibility Specialized additives provide long term color stability Diffusive lens materials improve light dispersion Smart Home Devices ResilienceTM Vinyl Solutions 1 Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to PolyOne shareholders and diluted adjusted earnings per share (EPS) from continuing operations attributable to PolyOne shareholders, excluding special items, to assess performance and facilitate comparability of results.
Adjusted EPS attributable to PolyOne common shareholders is calculated as follows: 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 Net income from continuing operations attributable to PolyOne common shareholders $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6 $ 166.4 $ 173.5 Joint venture equity earnings, after tax (19.0) (14.7) (3.7) — — — — — — Special items, before tax(1) (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 23.8 32.9 Special items, tax adjustments(1) (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (15.9) (24.8) Adjusted net income from continuing operations attributable to PolyOne common shareholders $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 174.3 $ 181.6 Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1 Adjusted EPS attributable to PolyOne common shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.06 $ 2.21 * Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principle, discontinued operations or the related resegmentation. (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; 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, 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; the effect of changes in accounting principles or other such laws or provisions affecting reported results and tax adjustments.
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 valuation allowance adjustments. 2 Adjusted EBITDA and net debt to adjusted EBITDA is calculated as follows: (In millions) Year Ended December 31, 2017 Income from continuing operations, before income taxes $ 212.3 Interest expense, net 60.8 Depreciation and amortization 82.8 Special items impact on income from continuing operations, before income taxes(1) 32.9 Adjusted EBITDA $ 388.8 Senior secured revolving credit facility $ 56.5 Senior secured term loan due 2022 637.5 Total Secured Debt 694.0 Less: Cash and cash equivalents (243.6) Net Secured Debt $ 450.4 Short-term and current portion of long-term debt $ 32.6 Long-term debt 1,290.9 Total Debt 1,323.5 Less: Cash and cash equivalents (243.6) Net Debt $ 1,079.9 Total Secured Debt / Adjusted EBITDA 1.8 Net Secured Debt / Adjusted EBITDA 1.2 Total Debt / Adjusted EBITDA 3.4 Net Debt / Adjusted EBITDA 2.8 (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; 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, 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; the effect of changes in accounting principles or other such laws or provisions affecting reported results and tax adjustments.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Goldman%2520Sachs%2520Conference%2520-%2520November%25202015.pdf
PolyOne Corporation Page 4 PolyOne Commodity to Specialty Transformation • Volume driven, commodity producer • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures 2000-2005 2006 - 2009 2010 – 2014 2015 and beyond • Steve Newlin appointed, Chairman, President and CEO • New leadership team appointed • Implementation of four pillar strategy • Focus on value based selling, investment in commercial resources and innovation to drive transformation • Substantial EPS growth from $0.13 to all-time high of $1.80 • Shift to faster growing, high margin, less cyclical end markets • Key acquisitions propel current and future growth, as well as margin expansion • Specialty mix expands to 65% of Operating Income – strongest mix of earnings in history • Accelerating growth • Deliver consistent double digit annual EPS growth • Maintain >35% vitality index • Pursue strategic acquisitions that expand specialty offerings and geographic breadth • Invest and grow current and next generation talent PolyOne Corporation Page 5 Appliances 5% Building & Construction 12% Consumer 10% Electrical & Electronics 5% Healthcare 11% Industrial 14% Packaging 14% Transportation 20% Wire & Cable 9% Distribution 28% PP&S 20% Specialty 52% United States 69% Europe 13% Canada 7% Asia 6% Latin America 5% 2014 Revenues: $3.8 Billion End Markets 2014 Revenues: $3.8 Billion PolyOne At A Glance $0.12 $0.27 $0.21 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 2006 2007 2008 2009 2010 2011 2012 2013 2014 Adjusted EPS PolyOne Corporation Page 6 Old PolyOne *Operating Income excludes corporate charges and special items 2% 34% 43% 62% 65% 66% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2013 2014 YTD 2015 2020 % o f O pe ra tin g In co m e* JV's Performance Products & Solutions Distribution Specialty 80%+ Specialty OI $5M $46M $87M $195M $242M $183M Mix Shift Highlights Specialty Transformation Transformation 2020 Platinum Vision Platinum Vision PolyOne Corporation Page 7 2006 YTD 2015 2020 “Where we were” “Where we are” Platinum Vision 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 17.2% 20%+ Global Specialty Engineered Materials 1.1% 15.1% 20%+ Designed Structures & Solutions 1.4% (2012) 3.5% 12 – 14% Performance Products & Solutions 5.5% 8.1% 10 – 12% Distribution 2.6% 6.6% 6.5 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 66% 80%+ 3) ROIC 5.0% 11.9% 15% 4) Adjusted EPS Growth N/A 24 Consecutive Quarters of YOY EPS Growth Double Digit Expansion Proof of Performance & 2020 Goals PolyOne Corporation Page 8 Innovation Drives Earnings Growth *Percentage of Specialty Platform revenue from products introduced in last five years $20 $52 2006 TTM Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 28% 2006 TTM Specialty Platform Gross Margin % 12% 43% 2006 TTM Specialty Vitality Index Target ≥ 35% TTM 9/30/15 TTM 9/30/15 TTM 9/30/15 PolyOne Corporation Page 9 Innovation Pipeline Potential Prototype Frame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 12 4 9 6 1 6 3 7 4 5 6 1 1 7 2 Breakthrough Platform Derivative Number of Projects 12 10 23 19 10 74 Specialty Addressable Market ($ millions) - - $1,150 $1,000 $250 $2,400 PolyOne Corporation Page 10 Lightweighting with Advanced Composites Increasing Healthcare Penetration Innovation Initiatives Expansion in Consumer Markets New Market Development $$$ $$ $ High Temperature Polymers PolyOne Corporation Page 11 Design and Service as a Differentiator Right Material & Color Desired Product Design Appropriate Manufacturing Process Delivering Concept to Commercialization Connecting the Dots with iQ Design Labs and InVisiO Color Design PolyOne Corporation Page 12 Customer First Through World-Class Service Strengthening relationships through: Providing LSS services to small/medium sized customers • Supporting customers who lack their own formal process improvement initiatives Providing training in Customer Centric Selling Skills with customers’ sales force PolyOne Corporation Page 13 60% 97% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 Q3 2015 Pension Funding** As of September 30, 2015 Debt Maturities & Pension Funding Net Debt / Adjusted EBITDA** = 2.1x $49 $121 $317 $600 $400 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2018 2020 2023 Debt Maturities As of September 30, 2015 ($ millions) Coupon Rate: 7.500% Variable* 7.375% 5.250% ** includes US-qualified pension plans only *Weighted average rate on revolver was 2.49% as of 9/30/15 **TTM 9/30/2015 PolyOne Corporation Page 14 Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return Expanding our sales, marketing, and technical capabilities Investing in operational and LSS initiatives ~75% of capital expenditures fund growth initiatives Organic Growth Acquisitions Share Repurchases Dividends $0.16 $0.20 $0.32 $0.40 $0.48 $0.10 $0.20 $0.30 $0.40 $0.50 2011 2012 2013 2014 2015 2016 Annual Dividend Targets that expand our: • Specialty offerings • End market presence • Geographic breadth Synergy opportunities Adjacent material solutions Repurchased nearly 2.4 million shares in Q3 2015 Repurchased 14.8 million shares since early 2013 5.2 million shares are available for repurchase under the current authorization $0.24 PolyOne Corporation Page 15 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
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 16 Appendix PolyOne Corporation Page 17 $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 18 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 19 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 20 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 21 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 22 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 23 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 24 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 25 Application Examples PolyOne Corporation Page 26 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 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 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 33 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.
https://www.avient.com/sites/default/files/2023-03/AVNT Mar 2023 Earnings Presentation.pdf
Additionally, Adjusted EPS excludes the impact of special items and amortization expense associated with intangible assets.2 AVIENT: WHO WE ARE 36 24 9 35 • U.S. and Canada • Latin America • Europe, Middle East & Africa • Asia 25,000+ CUSTOMERS Headquartered in Avon Lake, OH (Cleveland) 100+ manufacturing plants Key Financial Data 2023E Sales $3.45 billion 2023E EBITDA $530 million 2023E EPS $2.40 100% ARE CUSTOMIZED SOLUTIONS TO UNIQUE SPECIFICATIONS of sales 3 Guidance as of February 15, 2023 Webcast WHO WE ARE – VISION, STRATEGY, CULTURE 4 Avient Corporation (NYSE: AVNT) provides specialized and sustainable material solutions that transform customer challenges into opportunities, bringing new products to life for a better world.
https://www.avient.com/sites/default/files/resources/8.31.19%2520Investor%2520Presentation.pdf
T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y SERVICE: T H E T I M E L E S S D I F F E R E N T I A T O R PolyOne Corporation 31 T A L E N T D E V E L O P M E N T PolyOne Corporation 32 Leadership Program Participants 2012 2013 2014 2015 47 0 86 2016 2018 125 169 315 Campus Hires 2008 2011 2014 2017 0 25 90 47 PolyOne LSS Blackbelts 2008 2011 2014 2018 0 67 220 147 2018 141 A U N I Q U E C U S T O M E R E X P E R I E N C E Industrial Design IQ DESIGN LABS PolyOne Corporation 33 Material & Color Expertise Manufacturing Expertise 3 14 2014 2018 Industrial designers $0 $10M 2014 2018 $4M $80M 2014 2018 Opportunity funnel New business revenue LSS CUSTOMER FIRST PolyOne Corporation 34 Customer Projects 2014 2018 2 104 3 D P R I N T I N G B R I N G I N G N E W I D E A S T O L I F E PolyOne Corporation 35 PolyOne Corporation 36 M O N T H M O N T H M O N T H M O N T H M O N T H M O N T H 99.9% up to 24 weeks 6 hours C O L O R M A T R I X S E L E C T ™ I N N O V A T I N G W I T H P O L Y O N E PolyOne Corporation 37 SEGMENT HIGHLIGHTS C O L O R , A D D I T I V E S & I N K S EN D M A R K ET S & S O L U T I O N S PolyOne Corporation 38 Solid Colorants Performance Additives Screen Printing Inks Liquid Colorants Packaging 28% Industrial 14% Textiles 13% Wire & Cable 11% Building & Construction 10% Transportation 8% Consumer 8% Healthcare 5% Appliances 2% Electrical & Electronic 1% Operating Income & MarginRevenue by Region C O L O R , A D D I T I V E S & I N K S 2 0 1 8 R E V E N U E | O V ER $ 1 B I L L I O N $4 $25 $104 $159 0.9% 5.5% 12.2% 15.1% 2005 2009 2013 2018 PolyOne Corporation 39 Europe 35% United States 45% Asia 14% Canada 1% Mexico 3% South America 2% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S EN D M A R K ET S & S O L U T I O N S PolyOne Corporation 40 Engineered Formulations Advanced Composites Thermoplastic Elastomers Consumer 21% Transportation 18% Wire & Cable 13%Healthcare 9% Industrial 9% Packaging 7% Appliance 3% Building & Construction 4% Electrical & Electronics 16% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S Revenue by Region Operating Income & Margin 2 0 1 8 R EV EN U E | $ 6 4 6 M I L L I O N PolyOne Corporation 41 $21 $57 $72 0.1% 5.1% 9.3% 11.2% 2005 2009 2013 2018 Europe 28% United States 46% Asia 24% Canada 2% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S EN D M A R K ET S & S O L U T I O N S PolyOne Corporation 42 Specialty Vinyl Solutions Healthcare Formulations Smart Device Materials Flame Retardant Polymers Building & Construction 28% Industrial 18% Transportation 17% Wire & Cable 16%Consumer 7% Appliance 6% Packaging 4% Electrical & Electronics 4% Asia 2% United States 78% Mexico 5% Canada 15% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S Operating Income & MarginRevenue by Region 2 0 1 8 R EV EN U E | $ 7 3 6 M I L L I O N $40 $24 $56 $74 4.6% 3.6% 7.2% 10.0% 2005 2009 2013 2018 PolyOne Corporation 43 D I S T R I B U T I O N EN D M A R K ET S & S U P P L I ER S PolyOne Corporation 44 Healthcare 27% Transportation 22% Industrial 18% Consumer 12% Appliance 6% Electrical & Electronics 5% Building & Construction 5% Packaging 3% Wire & Cable 2% $20 $25 $63 $71 2.9% 4.0% 5.9% 5.6% 2005 2009 2013 2018 Operating Income & Margin2018 Revenue | $1.3 Billion http://www.polyone.com/Pages/VariationRoot.aspx O V E R V I E W O F R A W M A T E R I A L P U R C H A S E S PolyOne Corporation 45 T A R G E T E N D M A R K E T S & A P P L I C A T I O N E X A M P L E S PolyOne Corporation 46 Thermally Conductive Technologies Chemical Resistant Technologies Polymer Colorants Elastomeric Grips and Handles Structural Composites Antimicrobial Technologies Anti-Counterfeiting Technologies Target End Markets… Healthcare Catheter Technologies Under-hood Components Target End Markets… Automotive Interior Structural Components Sound & Vibration Management Roof Systems Air Management Electronics and Cameras Lighting Exterior / Interior Trim Braces & Brackets Fasteners Seals & Flaps Target End Markets… Consumer Thermally Conductive Components Polymer Colorants Elastomeric Grips and Handles Structural Composite Components Oxygen Scavenger Technologies Laser Marking Additives Antistatic Technologies UV Light Barrier Technologies Cap & Closure Colorants Process Optimization Technologies Antioxidant Technologies Density Modified Technologies Target End Markets… Packaging Luxury Packaging GravitechTM Density Modified Polymers Optimize Color Usage OnColorTM Super Concentrates Combat Bacteria Formation WithStandTM Antimicrobial Technology Medical Device Housings Chemically Resistant Engineered Polymers Color & Design Services Outdoor Applications Fiber Colorants Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to PolyOne shareholders and diluted adjusted earnings per share (EPS) from continuing operations attributable to PolyOne shareholders, excluding special items, to assess performance and facilitate comparability of results.
Adjusted EPS attributable to PolyOne common shareholders is calculated as follows: 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 Net income from continuing operations attributable to PolyOne common shareholders $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6 $ 166.4 $ 173.5 $ 161.1 Joint venture equity earnings, after tax (19.0) (14.7) (3.7) — — — — — — — Special items, before tax(1) (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 23.8 32.9 59.5 Special items, tax adjustments(1) (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (15.9) (24.8) (25.3) Adjusted net income from continuing operations attributable to PolyOne common shareholders $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 174.3 $ 181.6 $ 195.3 Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1 80.4 Adjusted EPS attributable to PolyOne common shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.06 $ 2.21 $ 2.43 * Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principle, discontinued operations or the related resegmentation. (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, including adjustments related to contingent consideration; employee separation costs resulting from personnel reduction programs, plant realignment 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 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.
https://www.avient.com/sites/default/files/resources/Investor%2520Presentation%2520May19.pdf
T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y SERVICE: T H E T I M E L E S S D I F F E R E N T I A T O R PolyOne Corporation 31 T A L E N T D E V E L O P M E N T PolyOne Corporation 32 Leadership Program Participants 2012 2013 2014 2015 47 0 86 2016 2018 125 169 315 Campus Hires 2008 2011 2014 2017 0 25 90 47 PolyOne LSS Blackbelts 2008 2011 2014 2018 0 67 220 147 2018 141 A U N I Q U E C U S T O M E R E X P E R I E N C E Industrial Design IQ DESIGN LABS PolyOne Corporation 33 Material & Color Expertise Manufacturing Expertise 3 14 2014 2018 Industrial designers $0 $10M 2014 2018 $4M $80M 2014 2018 Opportunity funnel New business revenue LSS CUSTOMER FIRST PolyOne Corporation 34 Customer Projects 2014 2018 2 104 3 D P R I N T I N G B R I N G I N G N E W I D E A S T O L I F E PolyOne Corporation 35 PolyOne Corporation 36 M O N T H M O N T H M O N T H M O N T H M O N T H M O N T H 99.9% up to 24 weeks 6 hours C O L O R M A T R I X S E L E C T ™ I N N O V A T I N G W I T H P O L Y O N E PolyOne Corporation 37 SEGMENT HIGHLIGHTS C O L O R , A D D I T I V E S & I N K S EN D M A R K ET S & S O L U T I O N S PolyOne Corporation 38 Solid Colorants Performance Additives Screen Printing Inks Liquid Colorants Packaging 28% Industrial 14% Textiles 13% Wire & Cable 11% Building & Construction 10% Transportation 8% Consumer 8% Healthcare 5% Appliances 2% Electrical & Electronic 1% Operating Income & MarginRevenue by Region C O L O R , A D D I T I V E S & I N K S 2 0 1 8 R E V E N U E | O V ER $ 1 B I L L I O N $4 $25 $104 $159 0.9% 5.5% 12.2% 15.1% 2005 2009 2013 2018 PolyOne Corporation 39 Europe 35% United States 45% Asia 14% Canada 1% Mexico 3% South America 2% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S EN D M A R K ET S & S O L U T I O N S PolyOne Corporation 40 Engineered Formulations Advanced Composites Thermoplastic Elastomers Consumer 21% Transportation 18% Wire & Cable 13%Healthcare 9% Industrial 9% Packaging 7% Appliance 3% Building & Construction 4% Electrical & Electronics 16% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S Revenue by Region Operating Income & Margin 2 0 1 8 R EV EN U E | $ 6 4 6 M I L L I O N PolyOne Corporation 41 $21 $57 $72 0.1% 5.1% 9.3% 11.2% 2005 2009 2013 2018 Europe 28% United States 46% Asia 24% Canada 2% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S EN D M A R K ET S & S O L U T I O N S PolyOne Corporation 42 Specialty Vinyl Solutions Healthcare Formulations Smart Device Materials Flame Retardant Polymers Building & Construction 28% Industrial 18% Transportation 17% Wire & Cable 16%Consumer 7% Appliance 6% Packaging 4% Electrical & Electronics 4% Asia 2% United States 78% Mexico 5% Canada 15% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S Operating Income & MarginRevenue by Region 2 0 1 8 R EV EN U E | $ 7 3 6 M I L L I O N $40 $24 $56 $74 4.6% 3.6% 7.2% 10.0% 2005 2009 2013 2018 PolyOne Corporation 43 D I S T R I B U T I O N EN D M A R K ET S & S U P P L I ER S PolyOne Corporation 44 Healthcare 27% Transportation 22% Industrial 18% Consumer 12% Appliance 6% Electrical & Electronics 5% Building & Construction 5% Packaging 3% Wire & Cable 2% $20 $25 $63 $71 2.9% 4.0% 5.9% 5.6% 2005 2009 2013 2018 Operating Income & Margin2018 Revenue | $1.3 Billion http://www.polyone.com/Pages/VariationRoot.aspx O V E R V I E W O F R A W M A T E R I A L P U R C H A S E S PolyOne Corporation 45 T A R G E T E N D M A R K E T S & A P P L I C A T I O N E X A M P L E S PolyOne Corporation 46 Thermally Conductive Technologies Chemical Resistant Technologies Polymer Colorants Elastomeric Grips and Handles Structural Composites Antimicrobial Technologies Anti-Counterfeiting Technologies Target End Markets… Healthcare Catheter Technologies Under-hood Components Target End Markets… Automotive Interior Structural Components Sound & Vibration Management Roof Systems Air Management Electronics and Cameras Lighting Exterior / Interior Trim Braces & Brackets Fasteners Seals & Flaps Target End Markets… Consumer Thermally Conductive Components Polymer Colorants Elastomeric Grips and Handles Structural Composite Components Oxygen Scavenger Technologies Laser Marking Additives Antistatic Technologies UV Light Barrier Technologies Cap & Closure Colorants Process Optimization Technologies Antioxidant Technologies Density Modified Technologies Target End Markets… Packaging Luxury Packaging GravitechTM Density Modified Polymers Optimize Color Usage OnColorTM Super Concentrates Combat Bacteria Formation WithStandTM Antimicrobial Technology Medical Device Housings Chemically Resistant Engineered Polymers Color & Design Services Outdoor Applications Fiber Colorants Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to PolyOne shareholders and diluted adjusted earnings per share (EPS) from continuing operations attributable to PolyOne shareholders, excluding special items, to assess performance and facilitate comparability of results.
Adjusted EPS attributable to PolyOne common shareholders is calculated as follows: 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 Net income from continuing operations attributable to PolyOne common shareholders $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6 $ 166.4 $ 173.5 $ 161.1 Joint venture equity earnings, after tax (19.0) (14.7) (3.7) — — — — — — — Special items, before tax(1) (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 23.8 32.9 59.5 Special items, tax adjustments(1) (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (15.9) (24.8) (25.3) Adjusted net income from continuing operations attributable to PolyOne common shareholders $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 174.3 $ 181.6 $ 195.3 Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1 80.4 Adjusted EPS attributable to PolyOne common shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.06 $ 2.21 $ 2.43 * Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principle, discontinued operations or the related resegmentation. (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, including adjustments related to contingent consideration; employee separation costs resulting from personnel reduction programs, plant realignment 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 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.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Seaport%2520Global%2520Transports%2520%2526%2520Industrials%2520Confer....pdf
Material & Color Expertise Manufacturing Expertise 2014 2017 3 to 14 industrial designers $0 to $7M new business revenue $4M to $40M opportunities identified LSS CUSTOMER FIRST PolyOne Corporation 15 Customer Projects Cumulative LSS Projects Enables sales growth by building more intimate customer relationships, giving us insight to customers’ needs, with a service that is not easily replicated 2014 2017 2 85 PolyOne Corporation 16 W H Y I N V E S T I N P O L Y O N E ?
Adjusted EPS attributable to PolyOne common shareholders is calculated as follows: 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 Net income from continuing operations attributable to PolyOne common shareholders $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6 $ 166.4 $ 173.5 Joint venture equity earnings, after tax (19.0) (14.7) (3.7) — — — — — — Special items, before tax(1) (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 23.8 32.9 Special items, tax adjustments(1) (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (15.9) (24.8) Adjusted net income from continuing operations attributable to PolyOne common shareholders $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 174.3 $ 181.6 Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1 Adjusted EPS attributable to PolyOne common shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.06 $ 2.21 * Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principle, discontinued operations or the related resegmentation. (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; 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, 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; the effect of changes in accounting principles or other such laws or provisions affecting reported results and tax adjustments.
https://www.avient.com/sites/default/files/2025-02/News Release - AVNT-2024.12.31-News Release 2.12.25 2PM_0.pdf
Three Months Ended December 31, 2024 2023 Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1) Net income from continuing operations attributable to Avient shareholders $ 48.3 $ 0.52 $ 27.8 $ 0.30 Special items, after-tax (Attachment 3) (18.0) (0.20) 5.4 0.06 Amortization expense, after-tax 14.8 0.17 15.0 0.16 Adjusted net income / EPS $ 45.1 $ 0.49 $ 48.2 $ 0.52 (1) Per share amounts may not recalculate from figures presented herein due to rounding Year Ended December 31, 2024 2023 Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1) Net income from continuing operations attributable to Avient shareholders $ 169.5 $ 1.84 $ 75.8 $ 0.83 Special items, after-tax (Attachment 3) 15.9 0.17 79.3 0.86 Amortization expense, after-tax 59.5 0.65 61.5 0.67 Adjusted net income / EPS $ 244.9 $ 2.66 $ 216.6 $ 2.36 (1) Per share amounts may not recalculate from figures presented herein due to rounding 8 Attachment 2 Avient Corporation Condensed Consolidated Statements of Income (Unaudited) (In millions, except per share data) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Sales $ 746.5 $ 719.0 $ 3,240.4 $ 3,142.8 Cost of sales 487.0 510.1 2,183.7 2,250.3 Gross margin 259.5 208.9 1,056.7 892.5 Selling and administrative expense 173.9 165.8 727.4 695.7 Operating income 85.6 43.1 329.3 196.8 Interest expense, net (25.5) (26.8) (105.6) (115.3) Other income, net 3.2 4.3 1.1 5.8 Income from continuing operations before income taxes 63.3 20.6 224.8 87.3 Income tax (expense) benefit (14.8) 7.0 (54.1) (11.0) Net income from continuing operations 48.5 27.6 170.7 76.3 Income (loss) from discontinued operations, net of income taxes — 0.8 — (0.1) Net income 48.5 28.4 170.7 76.2 Net (income) loss attributable to noncontrolling interests (0.2) 0.2 (1.2) (0.5) Net income attributable to Avient common shareholders $ 48.3 $ 28.6 $ 169.5 $ 75.7 Earnings per share attributable to Avient common shareholders - Basic: Continuing operations $ 0.53 $ 0.30 $ 1.86 $ 0.83 Discontinued operations — 0.01 — — Total $ 0.53 $ 0.31 $ 1.86 $ 0.83 Earnings per share attributable to Avient common shareholders - Diluted: Continuing operations $ 0.52 $ 0.30 $ 1.84 $ 0.83 Discontinued operations — 0.01 — — Total $ 0.52 $ 0.31 $ 1.84 $ 0.83 Cash dividends declared per share of common stock $ 0.2700 $ 0.2575 $ 1.0425 $ 1.0000 Weighted-average shares used to compute earnings per common share: Basic 91.4 91.2 91.3 91.1 Diluted 92.2 91.9 92.0 91.8 9 Attachment 3 Avient Corporation Summary of Special Items (Unaudited) (In millions, except per share data) Special items (1) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Cost of sales: Restructuring costs, including accelerated depreciation $ (4.6) $ (2.0) $ 1.0 $ (11.9) Environmental remediation costs (6.8) (17.2) (35.0) (69.7) Reimbursement of previously incurred environmental costs 34.7 1.6 34.7 1.6 Impact on cost of sales 23.3 (17.6) 0.7 (80.0) Selling and administrative expense: Restructuring and employee separation costs (2.6) (1.1) (9.2) (14.9) Legal and other (0.3) (6.1) (10.4) (15.2) Acquisition related costs — (1.3) (2.5) (5.9) Impact on selling and administrative expense (2.9) (8.5) (22.1) (36.0) Impact on operating income 20.4 (26.1) (21.4) (116.0) Interest expense, net - financing costs — (0.1) (2.3) (2.3) Pension and post retirement mark-to-market adjustments and other 3.5 3.8 3.6 3.7 Impact on other income, net 3.5 3.8 3.6 3.7 Impact on income from continuing operations before income taxes 23.9 (22.4) (20.1) (114.6) Income tax (expense) benefit on above special items (5.8) 4.5 6.1 27.7 Tax adjustments(2) (0.1) 12.5 (1.9) 7.6 Impact of special items on net income from continuing operations $ 18.0 $ (5.4) $ (15.9) $ (79.3) Diluted earnings per common share impact $ 0.20 $ (0.06) $ (0.17) $ (0.86) Weighted average shares used to compute adjusted earnings per share: Diluted 92.2 91.9 92.0 91.8 (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 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 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 and certain adjustments to uncertain tax position reserves and valuation allowances. 10 Attachment 4 Avient Corporation Condensed Consolidated Balance Sheets (Unaudited) (In millions) Year Ended December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 544.5 $ 545.8 Accounts receivable, net 399.5 399.9 Inventories, net 346.8 347.0 Other current assets 131.3 114.9 Total current assets 1,422.1 1,407.6 Property, net 955.3 1,028.9 Goodwill 1,659.7 1,719.3 Intangible assets, net 1,450.4 1,590.8 Operating lease assets, net 89.1 65.3 Deferred income tax assets 81.3 92.3 Other non-current assets 153.2 64.3 Total assets $ 5,811.1 $ 5,968.5 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term and current portion of long-term debt $ 7.7 $ 9.5 Accounts payable 417.4 432.3 Accrued expenses and other current liabilities 331.0 331.8 Total current liabilities 756.1 773.6 Non-current liabilities: Long-term debt 2,059.3 2,070.5 Deferred income taxes 260.4 281.6 Other non-current liabilities 405.7 504.8 Total non-current liabilities 2,725.4 2,856.9 SHAREHOLDERS' EQUITY Avient shareholders’ equity 2,313.8 2,319.2 Noncontrolling interest 15.8 18.8 Total equity 2,329.6 2,338.0 Total liabilities and equity $ 5,811.1 $ 5,968.5 11 Attachment 5 Avient Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Year Ended December 31, 2024 2023 Operating activities Net income $ 170.7 $ 76.2 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 179.7 188.8 Increase in environmental insurance receivable (34.0) — Deferred income tax benefit (23.8) (61.3) Share-based compensation expense 15.4 13.2 Changes in assets and liabilities, net of the effect of acquisitions: (Increase) decrease in accounts receivable (15.2) 38.6 (Increase) decrease in inventories (13.7) 24.3 Increase (decrease) in accounts payable 0.3 (22.2) Decrease in pension, retirement benefits and deferred compensation (34.3) (8.7) Taxes paid on gain on sale of business — (104.1) (Decrease) increase in environmental obligations (11.2) 38.9 Accrued expenses and other assets and liabilities, net 22.9 17.9 Net cash provided by operating activities 256.8 201.6 Investing activities Capital expenditures (121.9) (119.4) Net proceeds from divestiture — 7.3 Proceeds from plant closures 3.4 7.6 Other investing activities (2.1) 10.3 Net cash used by investing activities (120.6) (94.2) Financing activities Proceeds from long-term borrowings 650.0 — Payments on long-term borrowings (660.9) (105.8) Cash dividends paid (94.0) (90.2) Payments on withholding tax on share awards (6.4) (3.4) Debt financing costs (9.6) (2.3) Net cash used by financing activities (120.9) (201.7) Effect of exchange rate changes on cash (16.6) (1.0) Decrease in cash and cash equivalents (1.3) (95.3) Cash and cash equivalents at beginning of year 545.8 641.1 Cash and cash equivalents at end of year $ 544.5 $ 545.8 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/2024-10/Avient Announces Third Quarter 2024 Results.pdf
Three Months Ended September 30, 2024 2023 Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1) Net income from continuing operations attributable to Avient shareholders $ 38.2 $ 0.41 $ 5.1 $ 0.06 Special items, after-tax (Attachment 3) 6.6 0.07 32.0 0.35 Amortization expense, after-tax 15.0 0.16 15.2 0.16 Adjusted net income / EPS $ 59.8 $ 0.65 $ 52.3 $ 0.57 (1) Per share amounts may not recalculate from figures presented herein due to rounding Nine Months Ended September 30, 2024 2023 Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1) Net income from continuing operations attributable to Avient shareholders $ 121.2 $ 1.32 $ 48.0 $ 0.52 Special items, after-tax (Attachment 3) 33.9 0.37 73.9 0.81 Amortization expense, after-tax 44.7 0.49 46.5 0.51 Adjusted net income / EPS $ 199.8 $ 2.17 $ 168.4 $ 1.84 (1) Per share amounts may not recalculate from figures presented herein due to rounding 7 Attachment 2 Avient Corporation Condensed Consolidated Statements of Income (Unaudited) (In millions, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Sales $ 815.2 $ 753.7 $ 2,493.9 $ 2,423.8 Cost of sales 553.8 558.4 1,696.7 1,740.2 Gross margin 261.4 195.3 797.2 683.6 Selling and administrative expense 184.2 161.0 553.5 529.9 Operating income 77.2 34.3 243.7 153.7 Interest expense, net (26.9) (30.3) (80.1) (88.5) Other (expense) income, net (0.3) 1.0 (2.1) 1.5 Income from continuing operations before income taxes 50.0 5.0 161.5 66.7 Income tax (expense) benefit (11.3) 0.1 (39.3) (18.0) Net income from continuing operations 38.7 5.1 122.2 48.7 Loss from discontinued operations, net of income taxes — — — (0.9) Net income $ 38.7 $ 5.1 $ 122.2 $ 47.8 Net income attributable to noncontrolling interests (0.5) — (1.0) (0.7) Net income attributable to Avient common shareholders $ 38.2 $ 5.1 $ 121.2 $ 47.1 Earnings (loss) per share attributable to Avient common shareholders - Basic: Continuing operations $ 0.42 $ 0.06 $ 1.33 $ 0.53 Discontinued operations — — — (0.01) Total $ 0.42 $ 0.06 $ 1.33 $ 0.52 Earnings (loss) per share attributable to Avient common shareholders - Diluted: Continuing operations $ 0.41 $ 0.06 $ 1.32 $ 0.52 Discontinued operations — — — (0.01) Total $ 0.41 $ 0.06 $ 1.32 $ 0.51 Cash dividends declared per share of common stock $ 0.2575 $ 0.2475 $ 0.7725 $ 0.7425 Weighted-average shares used to compute earnings per common share: Basic 91.3 91.1 91.3 91.1 Diluted 92.3 91.9 92.0 91.8 8 Attachment 3 Avient Corporation Summary of Special Items (Unaudited) (In millions, except per share data) Special items (1) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Cost of sales: Restructuring costs, including accelerated depreciation $ 1.8 $ (2.1) $ 5.6 $ (9.9) Environmental remediation costs (2.4) (38.1) (28.2) (52.5) Impact on cost of sales (0.6) (40.2) (22.6) (62.4) Selling and administrative expense: Restructuring and employee separation costs (3.1) (2.0) (6.6) (13.8) Legal and other (4.3) 1.7 (10.1) (9.1) Acquisition related costs (0.4) (0.5) (2.5) (4.6) Impact on selling and administrative expense (7.8) (0.8) (19.2) (27.5) Impact on operating income (8.4) (41.0) (41.8) (89.9) Interest expense, net - financing costs (1.3) (2.2) (2.3) (2.2) Other income (loss) — — 0.1 (0.1) Impact on income from continuing operations before income taxes (9.7) (43.2) (44.0) (92.2) Income tax benefit on special items 3.5 10.8 11.9 23.2 Tax adjustments(2) (0.4) 0.4 (1.8) (4.9) Impact of special items on net income from continuing operations $ (6.6) $ (32.0) $ (33.9) $ (73.9) Diluted earnings per common share impact $ (0.07) $ (0.35) $ (0.37) $ (0.81) Weighted average shares used to compute adjusted earnings per share: Diluted 92.3 91.9 92.0 91.8 (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 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 and certain adjustments to uncertain tax position reserves and valuation allowances. 9 Attachment 4 Avient Corporation Condensed Consolidated Balance Sheets (In millions) (Unaudited) September 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 505.7 $ 545.8 Accounts receivable, net 465.1 399.9 Inventories, net 377.8 347.0 Other current assets 108.8 114.9 Total current assets 1,457.4 1,407.6 Property, net 973.5 1,028.9 Goodwill 1,716.8 1,719.3 Intangible assets, net 1,542.5 1,590.8 Deferred income taxes 133.1 92.3 Other non-current assets 224.0 129.6 Total assets $ 6,047.3 $ 5,968.5 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term and current portion of long-term debt $ 7.8 $ 9.5 Accounts payable 425.9 432.3 Accrued expenses and other current liabilities 460.8 331.8 Total current liabilities 894.5 773.6 Non-current liabilities: Long-term debt 2,059.9 2,070.5 Pension and other post-retirement benefits 63.7 67.2 Deferred income taxes 289.1 281.6 Other non-current liabilities 359.9 437.6 Total non-current liabilities 2,772.6 2,856.9 SHAREHOLDERS' EQUITY Avient shareholders’ equity 2,363.0 2,319.2 Noncontrolling interest 17.2 18.8 Total equity 2,380.2 2,338.0 Total liabilities and equity $ 6,047.3 $ 5,968.5 10 Attachment 5 Avient Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Nine Months Ended September 30, 2024 2023 Operating activities Net income $ 122.2 $ 47.8 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 133.1 142.6 Accelerated depreciation 1.2 1.9 Share-based compensation expense 12.5 9.7 Changes in assets and liabilities: Increase in accounts receivable (65.7) (5.7) (Increase) decrease in inventories (30.2) 16.5 Decrease in accounts payable (5.7) (59.1) Taxes paid on gain on sale of business — (104.1) Accrued expenses and other assets and liabilities, net (33.2) (2.5) Net cash provided by operating activities 134.2 47.1 Investing activities Capital expenditures (80.8) (75.0) Net proceeds from divestiture — 7.3 Proceeds from plant closures 3.4 — Other investing activities (2.1) 2.3 Net cash used by investing activities (79.5) (65.4) Financing activities Proceeds from long-term borrowings 650.0 — Payments on long-term borrowings (659.1) (103.8) Cash dividends paid (70.5) (67.6) Debt financing costs (9.6) (2.3) Other financing activities (4.6) (2.3) Net cash used by financing activities (93.8) (176.0) Effect of exchange rate changes on cash (1.0) (7.2) Decrease in cash and cash equivalents (40.1) (201.5) Cash and cash equivalents at beginning of year 545.8 641.1 Cash and cash equivalents at end of period $ 505.7 $ 439.6 11 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.