https://www.avient.com/sites/default/files/2020-03/PolyOne_Website-12.19.pdf
Richardson Executive Vice President and Chief Financial Officer PolyOne Corporation 4 PolyOne Corporation 5 Landmark portfolio transformation: > 85% of Adjusted EBITDA from specialty solutions World-class innovation, technology and service are differentiators Sustainability initiatives and alignment with megatrends drive above market growth in key end markets and applications: Capital management is a strength - proven track record of expanding ROIC while increasing invested capital Transaction expected to add $0.85 to pro forma adjusted EPS 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 Integrity V I S I O N PolyOne Corporation 6 To be the world’s premier provider of specialized polymer materials, services and solutions C O R E V A L U E S P E R S O N A L V A L U E S Honesty Respect Operational Excellence Commercial Excellence Specialization Globalization Collaboration ExcellenceInnovation To be the world’s premier provider of sustainable, specialty polymer materials and solutions.
S A F E T Y F I R S T PolyOne Corporation 7 Injuries per 100 Workers Spartech Acquisition 1.3 1.1 1.1 0.85 0.65 0.57 0.54 0.97 0.84 0.74 0.74 0.69 0.51 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 G R E A T P L A C E T O W O R K PolyOne Corporation 8 * Pro Forma for sale of DSS Operating Income % of Sales 2006 Q3 YTD 2019 Color, Additives & Inks 1.7% 15.5% Specialty Engineered Materials 1.1% 11.8% Distribution 2.6% 6.3% 2009 2010 2011 2012 2013 2014 2015 2016*2017* 2018 $2.43 P R O O F O F P E R F O R M A N C E C O N S E C U T I V E Y E A R S PolyOne Corporation 9 10 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.06 $2.21 A D J U S T E D E P S E X P A N S I O N 2018 2019E $1.65 $1.51 Pro Forma for sale of PP&S T R A N S F O R M A T I O N H E A D L I N E S PolyOne Corporation 10 C O M M O D I T Y T O S P E C I A L T Y T R A N S F O R M A T I O N PolyOne Corporation 11 • Volume driven, commodity production • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures • Shift to value-based selling & an innovative culture • New leadership team appointed • Implementation of four pillar strategy • Investment in commercial training and innovation • Faster growing, high margin focus • Accelerated growth with world class vitality index • Significant commercial resource additions • Expanded margins with specialty focus • Acquired strategic, bolt-on companies to expand technology offerings and improve geographic breadth Volume Value Transformation The Future 2006 - 2013 2013 – 20192000-2005 2006 - 2013 • Landmark portfolio transformation creates specialty growth company • Sustainability / mega- trends drive above market growth 2020 and Beyond F I T W I T H F O U R P I L L A R S T R A T E G Y PolyOne Corporation 12 Specialization • Innovation-led organization with heavy emphasis on R&D • World-class expertise in color formulation • Strong presence in specialty end markets including Consumer, Packaging and Healthcare Globalization • Diverse geographic portfolio with an established presence in every major region • Expands PolyOne’s ability to serve customers in key growth areas including India, China and Southeast Asia Operational Excellence • Extensive manufacturing footprint with 46 facilities • Organizational focus on optimizing supply chain to better serve customers • Color design expertise Commercial Excellence • Value-focused salesforce with vast experience marketing and commercializing specialty technologies • Diverse customer portfolio with established OEM’s People Experienced and talented associates with a winning mentality L E V E R A G I N G G L O B A L M E G A T R E N D S 13 Facilitate alternative energy solutions Light- weighting Reduce packaging materials Improve recyclability Reduce spread of infection T R A N S P O R T A T I O N P A C K A G I N G H E A L T H C A R EC O N S U M E R PolyOne Corporation E N D M A R K E T T R A N S F O R M A T I O N PolyOne Corporation 14 Building & Construction 5% 2006 2019E PF* 4% 12% 10% 18% 8% 20% 2006 2019E PF* Healthcare Consumer Packaging 50% 22% High Growth End Markets Percentage of Total Revenue 38% * 2019E Pro Forma for PP&S Divestiture and Clariant Color & Additive Masterbatch business E N D M A R K E T T R A N S F O R M A T I O N PolyOne Corporation 15 Packaging 8% Building & Construction 38% Wire & Cable 11% Industrial 10% Electrical & Electronic 7% 2006 2019E PF* Healthcare 4% Transportation 12% Consumer 18% Building & Construction 5% Wire & Cable 6% Industrial 12% Electrical & Electronic 5% Appliance 3% Textiles 6% Transportation 13% Healthcare 12% Packaging 20% Consumer 10% * 2019E Pro Forma for PP&S Divestiture and Clariant Color & Additive Masterbatch business C O M P L E M E N T A R Y G E O G R A P H I C P R E S E N C E PolyOne Corporation 16 United States 38% Europe 33% Asia 19% Canada 4% Latin America 6% United States 22% Europe 40% Asia & Middle East 31% Canada 1% Latin America 6% Color & Engineered Materials Clariant Color & Additive Masterbatch Business Net Sales by Geographic Region United States 31% Europe 36% Asia & Middle East 24% Canada 3% Latin America 6% Pro Forma Color & Engineered Materials 531 710 1,042 130 164 208 504 663 880 2014 2018 2019E PF* R&D / Technical Marketing Sales PolyOne Corporation 17 + 34% + 26% + 32% E X P A N S I O N O F COMMERCIAL RESOURCES D R I V I N G G R O W T H $2.9 $2.9 $3.5 2015 2016 2017 2018 2019E PF Total + 9% Organic + 5% Revenue in Billions Total + 10% Organic + 7%+ 47% + 27% + 33% $4.0 $3.2 2019E PF* * 2019E Pro Forma for PP&S Divestiture and Clariant Color & Additive Masterbatch business P R I O R A C Q U I S I T I O N S : P R O O F O F P E R F O R M A N C E PolyOne Corporation 18 Commercial Resources Operating Income ($ in millions) Operating Margins 243 340 At Acquisition 2018 $36 $96 At Acquisition 2018 11% 20% At Acquisition 2018 Established Acquisitions (> 7 years) + 40% + 165% + 900 bps U N I F I E D F O C U S O N S U S T A I N A B I L I T Y PolyOne Corporation 19 2006 - 2013 2013 – 2019 PEOPLE PRODUCTS PLANET PERFORMANCE PolyOne Clariant Color & Additive Masterbatch Business • Building mini-recycling plants to facilitate customer projects on design for recycling - CycleWorks • Uses packaging additives & colorants to improve recyclability and enhance automated sorting • Manufactures oxygen scavengers to extend shelf-life of perishable items and reduce material requirements • Combines UV-blocking additive colorants & other barriers to prevent spoilage and waste • Offers spin-dyeing solutions that use significantly less water than traditional methods, allowing for sustainable coloration of textiles • Produces infrared absorbing additives that reduce energy requirements for bottle manufacturing ($ in millions) PolyOne (Continuing Operations) Clariant Color & Additive Masterbatch Business Synergies New PolyOne 2019E Total Sales $2,860 $1,150 $4,010 2019E Adjusted EBITDA $310 $130 $60 $500 % Margin 10.8% 11.3% 12.5% 2019E CapEx $60 $85 % Sales 2.1% 2.1% 2019E Free Cash Flow $170 $250 2019E Adjusted EPS $1.65 $2.22 2019E PF Adjusted EPS $1.65 $2.50 P O L Y O N E + C L A R I A N T C O L O R & A D D I T I V E M A S T E R B A T C H B U S I N E S S PolyOne Corporation 20 (1) Excludes step-up of depreciation & amortization related to purchase accounting of transaction (1) $0.85/share O V E R 8 5 % O F A D J U S T E D E B I T D A F R O M S P E C I A L T Y PolyOne Corporation 21 46% 66% 0% 20% 40% 60% 80% 100% 2005 2010 2015 2019E PF % o f A d ju s te d E B IT D A * JV's Performance Products & Solutions Distribution Specialty 7% 87% * Adjusted EBITDA is EBITDA excluding corporate costs and special items ** 2019E Pro Forma for PP&S Divestiture and Clariant Color & Additive Masterbatch business acquisition with synergies Specialty EBITDA $14M $117M $273M $500M ** PolyOne Corporation 22 T R A N S A C T I O N O V E R V I E W • Expected mid-2020, subject to regulatory approvals and customary closing conditions Closing Conditions / Timing • Committed financing in place • Permanent financing to be combination of available cash on-hand, new debt and equity component to limit leverage • Equity issuance of $400 to $500MM • Target net leverage below 3.5x, 3.1x synergized, with intention to de-lever below 3.0x within 2 years PolyOne Corporation 23 • $1.45 B net purchase price • Represents 11.1x adjusted EBITDA (excluding synergies), 7.6x adjusted EBITDA (including synergies) • Pre-tax synergies of $60MM expected to be fully realized by the end of 2023 • Synergies realized from sourcing, operational, technology / commercial, and general administrative Transaction Value Synergies Financing Estimated Synergy Breakdown $60MM • Expect EBITDA synergies of $60MM – Proven integration expertise with a decade of acquisition experience – Administrative synergies reflect reduction of duplicative internal and third-party costs • Run rate synergies of $20MM by the end of Year 1 with $60MM achieved by the end of Year 3 • Significant additional opportunity for geographical expansion – Clariant Color & Additive Masterbatch business has complementary regional presence in key growth areas including India & Southeast Asia • Opportunity to accelerate growth with a combined portfolio of innovative solutions aligned with sustainability megatrends Sourcing 40% Operational 30% Administrative 30% PolyOne Corporation 24 S I G N I F I C A N T S Y N E R G Y O P P O R T U N I T I E S C A P I T A L S T R U C T U R E / L E V E R A G E PolyOne Corporation 25 At Close Year 1 Year 2 3.2x 3.5x 3.1x 2.6x Pro Forma with Synergies 2019E PF Two year leverage goal (1) Pro Forma Capitalization is for illustrative purposes only; amounts may vary depending on various market and other factors.
https://www.avient.com/sites/default/files/2023-09/65799-Certificate-26SEP2023%5B1%5D.pdf
Autopista Medellín KM 2.5 – Vía Parcelas KM 1, Vereda Sibéria COTA, Cundinamarca Colombia Activity: Manufacture, Laboratory (QC and Colormatching), Sales Activity: Administration, Site management, Manufacture, Laboratory, Maintenance, Infrastructure, Warehouse and Transport, Sales Page 4 of 10 ABS Quality Evaluations Avient Corporation ISO 9001:2015 Certificate Of Conformance ANNEX At Below Facilities: Validity of this certificate may be confirmed at www.abs-qe.com/cert_validation.
Avient Colorants Indonesia Gatot Subroto Km. 4, Jl.
Plasticos 28 Santa Clara Coatitla Ecatepec de Morelos, Estado de México 55540 México Facility: Avient New Zealand Ltd. 4 Rothwell Avenue, Albany Industrial Estate Albany 0632 New Zealand Activity: Administration, Manufacture, Laboratory, Warehouse Activity: Administration, Site management (Facitilities, EHS), Manufacture, Laboratory (QC and Technical Development), Maintenance and Infrastructure, Warehouse and Transport, SCM (DIP, Logistics, CSD, Call-off), QC, Product Stewardship Facility: Avient Colorants Italy S.R.L.
https://www.avient.com/sites/default/files/2020-07/avient-abac-hungarian-200721.pdf
2 Kormányhivatalnok megvesztegetése 2 Kereskedelmi vesztegetés 3 Ügymenetkönnyítő kifizetések és visszafizetések 3 Együttműködés megbízottakkal és más harmadik felekkel 3 Átvilágítási és jóváhagyási eljárás 3 Figyelmeztető jelzések 4 Számviteli és nyilvántartás-vezetési követelmények 4 Az irányelv lehetséges megsértéseinek jelentése 4 Avient etikai forródrót 5 Megtorlással szembeni védelem 5 Gyors hivatkozás: HELYES ÉS HELYTELEN ELJÁRÁSOK AZ ABAC SZERINT 6 1 Globális vesztegetésellenes és korrupcióellenes irányelvünk Az Avient minden üzleti műveletével kapcsolatban szigorúan tiltja a csalást, a vesztegetést és az egyéb korrupt üzleti gyakorlatokat a világ minden részén.
subject= 4 A kockázat minimálisra csökkentése érdekében az Avientnek figyelembe kell vennie bizonyos tényezőket, mielőtt üzleti kapcsolatba lépne bármely harmadik féllel, és minden harmadik fél köteles megfelelni a következő követelményeknek: • ó hírnév - kellő tapasztalattal és szakértelemmel bír • Hiteles - az üzleti referenciák alátámasztják a harmadik fél szakértelmére vonatkozó állításait • Pénzügyileg stabil - megfelelő erőforrások kötelezettségek teljesítésére • Etikai és jogi gyakorlatok - elkötelezett az alkalmazandó jogszabályok betartása mellett, beleértve a megvesztegetés elleni jogszabályokat is; és • Elkötelezett - aláírja a jelen irányelv tudomásul vételét és az annak betartására vonatkozó szerződést.
https://www.avient.com/sites/default/files/2020-07/avient-abac-indonesia-200720.pdf
2 Praktik Suap terhadap Pejabat Pemerintah 2 Praktik Suap Komersial 3 Pembayaran Uang Pelicin dan Balas Jasa 3 Bekerja Sama dengan Agen, Distributor, dan Pihak Ketiga Lainnya 3 Uji Tuntas dan Proses Persetujuan 3 Tanda Bahaya 4 Persyaratan Akuntansi dan Pencatatan 4 Melaporkan Kemungkinan Pelanggaran 4 Saluran Langsung Etika Avient 5 Perlindungan dari Pembalasan Dendam 5 Referensi Cepat: ANJURAN DAN LARANGAN ABAC 6 1 Kebijakan Global Kita tentang Antisuap dan Antikorupsi Avient melarang keras penipuan, praktik suap, dan praktik bisnis korup lainnya di semua operasi bisnis kita di mana pun di seluruh dunia.
subject= 4 mempertimbangkan faktor tertentu sebelum menandatangani hubungan dengan pihak ketiga dan semua pihak ketiga harus memenuhi standar berikut: • Memiliki reputasi baik – memiliki pengalaman dan keahlian yang diperlukan • Kredibel - referensi bisnis mendukung klaim keahlian pihak ketiga • Stabil secara finansial - sumber daya memadai untuk memenuhi komitmen • Praktik etika & hukum - berkomitmen untuk mematuhi semua undang-undang yang berlaku, termasuk undang-undang antisuap; dan • Berkomitmen - menandatangani pernyataan, dan perjanjian untuk mematuhi, Kebijakan ini Tanda Bahaya Avient juga dapat dimintai pertanggungjawaban berdasarkan Undang-undang ABAC atas tindakan agen dan pihak ketiga lainnya (termasuk mitra usaha patungan).
https://www.avient.com/sites/default/files/2021-04/avient-q4-earnings-and-2021-outlook-website.pdf
$0.30 $0.52 2019 PF 2020 Q4 2020 ORGANIC PERFORMANCE 3 Sales $922 $997 2019 PF 2020 +8% Adjusted Operating Income Adjusted EPS $58 $80 2019 PF 2020 +38% +73% • Record 4th quarter sales, adjusted operating income and adjusted EPS performance • All segments delivered year-over-year sales and operating income growth, led by consumer and healthcare end markets • Clariant Masterbatch integration synergy capture ahead of schedule: $5 million realized in 2020 ($ in millions except EPS) (1) (1) (1) (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition Q4 2020 SEGMENT PERFORMANCE 4 Sales Operating Income $100 $100 $100 $922 $100 $100 $100 $997 Distribution CAI SEM Total 2019 2020 $178 $272 $490 $191 $305 $526 SEM Distribution CAI 2019PF 2020 +8% +7% +7% +12% $5 $5 $5 $58 $5 $5 $5 $80 Avient CAI SEM Total 2019 PF 2020 $17 $19 $40 $18 $30 $58 Distribution SEM CAI 2019PF 2020 +38% +45% +58% +6% (3) (3) ($ in millions) (1) (2) (1) Total company sales include intercompany sales eliminations (2) Total company reflects adjusted operating income and includes corporate costs (3) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition 2020 HIGHLIGHTS 5 • Completed transformational Clariant Masterbatch acquisition and created new brand name Avient • Increased pro forma adjusted EPS 11% from $1.74 to $1.93 as an essential supplier during the pandemic and due to growth in demand for consumer applications • Specialty Engineered Materials delivered record operating income on gains from composites • Achieved record free cash flow, increased dividend for 10th year in a row and delevered from 3.5x to 2.7x net debt to pro forma adjusted EBITDA • Culture is everything: Certified as a Great Place to Work® $133 $150 2019PF 2020PF 10% 23%8% 21% 4% 15% 2006 2020PF Healthcare Consumer Packaging Avient Portfolio Transformation 22% 59% CLARIANT MASTERBATCH: TRANSFORMATIONAL ACQUISITION 6 Clariant MB EBITDA Growth Purchase Price Multiple 10.8 9.6 6.5 2019PF 2020PF 2020PF w/ Full Synergies x x x • Acquisition of Clariant Masterbatch significantly expands presence in healthcare, packaging and consumer end markets • Strength of portfolio – 13% EBITDA growth as an essential supplier in COVID response and recovery • Acquisition completed on July 1, 2020 for $1.4 billion.
10 2021 O U TLO O K Synergies ($ millions) Initial Three-Year Estimate Revised Three-Year Estimate 2021 Expected Realization Administrative $ 18 $ 20 $ 15 Sourcing 24 30 15 Operational 18 25 5 Total Synergies $ 60 $ 75 $ 35 CLARIANT INTEGRATION & COST SYNERGIES UPDATE 12 • Integration going extremely well: synergy target increased from $60 million to $75 million • $5 million of synergies in 2020 and expect to realize $35 million in 2021 • Relentless focus on guiding principles of safety first, employee collaboration and exceeding customer expectations • Future revenue synergies are not part of these estimates and represent additional growth over the long term $86 $103 2020PF 2021E $0.53 $0.70 2020PF 2021E ORGANIC GROWTH PROJECTIONS – Q1 (TOTAL COMPANY) 13 Sales Adjusted Operating Income $991 $1,090 2020PF 2021E + 10% Adjusted EPS + 20% + 32% (in millions) (in millions) (1) (1) (1) (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition $308 $360 2020PF 2021E $1.93 $2.40 2020PF 2021E ORGANIC GROWTH PROJECTIONS – FULL YEAR (TOTAL COMPANY) 14 Sales Adjusted Operating Income $3,783 $4,100 2020PF 2021E + 8% Adjusted EPS + 17% + 24% (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition (1) (1) (in millions) (in millions) (1) 2020 Pro forma $3,783 $308 Sustainable Solutions 60 11% 24 Healthcare 60 11% 18 Composites 20 10% 10 Growth in Emerging Regions 50 7% 11 Other (GDP growth) 82 5% 11 Sub-total $4,055 7% $382 COVID Response Applications (25) - (11) Outdoor High Performance Applications (15) - (7) Asia Payroll Tax Subsidy (COVID) - - (4) FX Impact 85 - 7 Synergies - - 30 Incentives, Travel, Other Employee Costs - - (37) 2021 Estimated $4,100 8% $360 2021 ORGANIC SALES AND OPERATING INCOME (TOTAL COMPANY) 15 (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition (2) COVID Response Applications: facemasks, personal protective equipment Sales Growth Rate Adjusted Operating Income$ millions (1) (2) CASH FLOW AND LEVERAGE 16 • Asset light business generates significant free cash flow • Cash generation in 2021 partially offset by restructuring activities to capture synergies associated with the Clariant Masterbatch acquisition • Cash flow deployed to M&A, opportunistic share repurchases and balance sheet / leverage reduction 3.5x 2.7x 2.1x 2019PF 2020PF 2021E Net Debt / Adjusted EBITDA (1) (1) (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition ($ millions) 2020 2021E Adjusted EBITDA 382 510 Working Capital: Source / (Use) 116 (30) Cash Taxes (40) (53) Interest Paid (67) (76) CapEx (62) (75) CapEx for Synergy Capture (2) (20) Restructuring for Synergy Capture (11) (25) Other 22 19 Free Cash Flow 338 250 We sell solutions not commodities.
Whether an additional line at an existing manufacturing plant, or a new facility in a growing region, we ramp-up quickly and cost-efficiently. 22 Capex / Revenue 2021E (%) AVIENT IS ASSET LIGHT Avient Specialty Formulators Other Chemical/Specialty Companies 2 3 2 2 2 3 3 6 2 3 4 4 5 5 5 6 6 6 7 9 25 A vi en t A vi en t (E xc l.
https://www.avient.com/sites/default/files/2023-12/Versaflex OM TPEs for Sealing Ring of Blood Lancet.pdf
BLOOD LANCET MANUFACTURER S E A L I N G R I N G • Compliance with strict regulations for medical materials • Excellent sealing performance • Good compression set • Provided a recycled TPE solutions compared to silicone without increasing system cost • Delivered a TPE that complied with ISO 10993-4 & -5 and USP Class VI • Supported a change to an injection molded material to ease production and enhance assembly capabilities Versaflex™ HC TPEs – OM1040-1 Grade KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2023-11/Versaflex HC -Syringe tip cap-Case study snapshot.pdf
PRE-FILLED SYRINGE COMPANY S Y R I N G E T I P C A P • Excellent sealing performance • No DEHP or natural rubber latex added during processing • Can be sterilized by EtO • Compliant with ISO 10993-4&5 and USP Class VI • Formulated a solution that met rigorous medical application requirements • Leveraged global footprint to ensure supply continuity • Increased process efficiency by replacing previous thermoset material with a TPE Versaflex™ HC Thermoplastic Elastomers KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2021-06/escritura-publica-cambio-razon-social-performance-masterbatches618442v1.pdf
www.fojas.cl Pag: 1/1 Pag: 1/11 Certificado Nº 123456880196 Verifique validez en http://www.fojas.cl Pag: 2/11 Certificado Nº 123456880196 Verifique validez en http://www.fojas.cl Pag: 3/11 Certificado Nº 123456880196 Verifique validez en http://www.fojas.cl Pag: 4/11 Certificado Nº 123456880196 Verifique validez en http://www.fojas.cl Pag: 5/11 Certificado Nº 123456880196 Verifique validez en http://www.fojas.cl Pag: 6/11 Certificado Nº 123456880196 Verifique validez en http://www.fojas.cl Pag: 7/11 Certificado Nº 123456880196 Verifique validez en http://www.fojas.cl Pag: 8/11 Certificado Nº 123456880196 Verifique validez en http://www.fojas.cl Pag: 9/11 Certificado Nº 123456880196 Verifique validez en http://www.fojas.cl Pag: 10/11 Certificado Nº 123456880196 Verifique validez en http://www.fojas.cl Pag: 11/11 2021-05-31T12:52:48-0400 Santiago - Chile EDUARDO JAVIER DIEZ MORELLO Notario Publico Eduardo_Diez_Morello
https://www.avient.com/sites/default/files/2024-08/Avient-2023-Sustainability-Report_6.pdf
Englewood, Colorado Maryland Heights, Missouri(b) 4.
Barcelona, Spain 4.
VOCs: 669.99 MT 4.
https://www.avient.com/sites/default/files/2024-08/Avient-2023-Sustainability-Report_5.pdf
Englewood, Colorado Maryland Heights, Missouri(b) 4.
Barcelona, Spain 4.
VOCs: 669.99 MT 4.