https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Morgan%2520Stanley%2520Global%2520Chemicals%2520and%2520Agriculture%2520Conference%2520-%252011%253A15%253A2016.pdf
A reconciliation of each non-GAAP financial measure with the most directly comparable GAAP financial measure is attached to this presentation which is posted on our website at www.polyone.com. 4 POLYONE CORPORATION About PolyOne Reach 7,000 associates | 77 facilities | $3.4 B 2015 revenue Global Presence 10,000 global customers | Americas, Europe, Africa, Asia | Global sales, technical and manufacturing footprint Solutions 35,000+ polymer solutions | 12 innovation centers | Support for design through manufacturing 5 POLYONE CORPORATION What We Do Value Formulation Expertise Inputs Base resins Additives Modifiers Pigments Expertise in Polymer Materials, Services and Solutions OEMs Brand Owners Processers Assemblers Driving customer value with specialty products & services Service InVisiOSM Color Services IQ Design Labs LSS Customer First POLYONE CORPORATION 6 CAI 23% SEM 15% DSS 13% POD 29% PPS 20% 2015 Revenue: $3.4 Billion At a Glance United States 66% Europe 13% Canada 7% Asia 7% Latin America 7% $0.12 $0.27 $0.21 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 Revenue: $3.4 Billion 2015 Operating Income: $322 Million CAI 38% SEM 23% DSS 4% POD 19% PPS 16% Adjusted Earnings Per Share 7 POLYONE CORPORATION Old PolyOne *Operating Income excludes corporate charges and special items 2% 43% 65% 0% 20% 40% 60% 80% 100% 2005 2010 2015 2020 % o f O pe ra tin g In co m e* JV's Performance Products & Solutions Distribution Specialty 80%+ Specialty OI $5M $87M $229M Transformation 2020 Platinum Vision Platinum Vision Mix Shift Highlights Specialty Transformation POLYONE CORPORATION 8 -$0.10 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 2009 2010 2011 2012 2013 2014 2015 2016 Adjusted Earnings Per Share $0.56 3Q -2% 0% 2% 4% 6% 8% 10% 12% 2009 2010 2011 2012 2013 2014 2015 2016 Adjusted Consolidated Operating Margin 2.8% 5.2% 5.6% 6.7% 8.3% 6.9% 9.5% 9.9% 3Q 28 Consecutive Quarters of EPS Growth 9 POLYONE CORPORATION 2006 2016 YTD 2020 “Where we were” “Where we are” Platinum Vision 1) Operating Income % of Sales Specialty: Color, Additives & Inks 1.7% 17.0% 20%+ Specialty Engineered Materials 1.1% 15.2% 20%+ Designed Structures & Solutions N/A 0.6% (TTM) 8 – 10% Performance Products & Solutions 5.5% 11.6% 12 – 14% Distribution 2.6% 6.6% 6.5 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 60% 80%+ 3) ROIC* 5.0% 11.6% 15% 4) Adjusted EPS Growth N/A 11.5% Double Digit Expansion Proof of Performance & 2020 Goals *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period POLYONE CORPORATION 10 2,883 2,414 2006 2015 Volume (lbs in millions) -16% $103 $192 2006 2015 Commercial, R&D and Marketing Spending ($M) +86% $88 $322 2006 2015 Adjusted Operating Profit ($M) +266% Ours is Not a Cost Cutting Story 11 POLYONE CORPORATION Innovation Drives Earnings Growth *Specialty Platform revenue from products introduced in last five years $20 $53 2006 2015 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 34% 2006 2015 CAI & SEM Gross Margin 12% 43% 2006 2015 Target ≥ 35% Innovation Pipeline Potential 12 POLYONE CORPORATION Globalization Specialization Commercial Excellence Operational Excellence Growth in urbanization Changing demographics Climate and resource challenges Increase of individual power Evolution and expansion of healthcare Strategic Growth Opportunities Four Pillar Strategy Global Megatrends Attractive Revenue & Margin Growth Opportunities 13 POLYONE CORPORATION Primary Industries Served 2015 Revenue: $3.4 Billion Electrical & Electronic 5% Building & Construction 12% Appliance 4% Industrial 14% Wire & Cable 9% Healthcare 11% Consumer 10% Packaging 13% Transportation 20% Focus End Markets 14 POLYONE CORPORATION Therma-Tech™ & Sheet GEON™ Vinyl Polymer Colorants Therma-Tech™ TPE’s & Film TPE + OnForce™ Gravi-Tech™ Page 14 Film Target End Markets… Healthcare 15 POLYONE CORPORATION Sound & Vibration Management Fuel Handling Systems Interior & Exterior Trim Structural Braces & Brackets Interior Structural Components Lighting Air management Electronics & Cameras Fluid Handling Target End Markets… Automotive Underhood Components Roof Systems 16 POLYONE CORPORATION PreservaPak™ OnColor™ Smart Batch™ VersaFlex™ TPE Cap Liner ColorMatrix™ Amosorb™ Oxygen Scavenger ColorMatrix™ Ultimate™ UV Light Barrier OnCap™ Laser Marking Additives Target End Markets… Packaging 17 POLYONE CORPORATION Source: Outdoor Industry Association TPE Vibration Dampening (SEM/GLS) TPE + OnForce (SEM) OnForce (SEM) Advanced Composites (SEM) TPE Vibration Dampening (SEM/GLS) Target End Markets… Outdoor High Performance Thermoplastic Elastomers (SEM) Advanced Composites (SEM) Polymer Colorants (CAI) Sheet (DSS) TPE & Film (SEM + DSS) Advanced Composites (SEM) Polymer Colorants (CAI) Thermatech (SEM) Thermoplastic Elastomers (SEM) TPE + OnForce (SEM) OnForce (SEM) 18 POLYONE CORPORATION Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return Expanding our sales, marketing, and technical capabilities Investing in operational and LSS initiatives ~75% of capital expenditures fund growth initiatives Organic Growth Acquisitions Share Repurchases Dividends Targets that expand our: • Specialty offerings • End market presence • Geographic breadth Synergy opportunities Adjacent material solutions Repurchased 318,000 shares in Q3 2016 Repurchased 17.6 million shares since early 2013 9.7 million shares are available for repurchase under the current authorization Increased annual dividend by 12.5% to $0.54 per share, representing the sixth consecutive year of dividend growth 19 POLYONE CORPORATION Returning Cash to Shareholders $0.16 $0.20 $0.24 $0.32 $0.40 $0.48 $0.54 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 2011 2012 2013 2014 2015 2016 2017 Annual Dividend Since 2011, we have returned nearly $800 million to shareholders $130 million returned through dividends $650 million returned through share repurchases $650M $0 $150 $300 $450 $600 $750 2011 2012 2013 2014 2015 Q3'16 Cumulative Share Repurchases (in millions) POLYONE CORPORATION 20 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 strengths Innovation and services provide differentiation, incremental pricing power and competitive advantage Strong and proven management team driving growth and performance 21 POLYONE CORPORATION Segment Highlights POLYONE CORPORATION 22 2015 Revenue: $0.8 Billion At a Glance: Color, Additives & Inks Key Applications 2015 Revenue by Industry Expanding Profits 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 14.7% 16.7% 17.0% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 2020 Operating Income % of Sales Platinum Vision United States 48% Europe 33% Asia 12% Latin America 5% Canada 2% Packaging 31% Industrial 13% B & C 11% W & C 11% Transportation 9% Consumer 8% Textiles 8% Healtchare 6% Appliances 2% E & E 1% POLYONE CORPORATION 23 2015 Revenue: $0.5 Billion At a Glance: Specialty Engineered Materials 2015 Revenue by Industry Expanding Profits 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 12.1% 14.7% 15.2% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 2020 Operating Income % of Sales Platinum Vision Consumer 20% Transportation 19% E & E 16% W & C 15% Healthcare 11% Industrial 8% Packaging 5% Appliances 3% B & C 3% United States 49% Europe 29% Asia 20% Canada 2% Key Applications POLYONE CORPORATION 24 2015 Revenue: $0.5 Billion At a Glance: Designed Structures & Solutions 2015 Revenue by Industry Expanding Profits 1.4% 5.6% 7.3% 3.0% 8-10% 0.3% 2012 2013 2014 2015 2016 YTD 2020 Operating Income % of Sales Platinum Vision Transportation 33% Industrial 24% Packaging 19% B & C 9% Healthcare 7% Consumer 5% Appliances 3% United States 97% Canada 3% Key Applications http://www.google.com/url?
sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.mullerquaker.com/products/greek100/greek100-peach-and-passion-fruit&ei=-acYVZq7EIqwyASDjYL4CA&bvm=bv.89381419,d.cWc&psig=AFQjCNGNCQY1_dCN2RPLzxtap_Pu0omTXQ&ust=1427765484498432 POLYONE CORPORATION 25 2015 Revenue: $0.7 Billion At a Glance: Performance Products & Solutions 2015 Revenue by Industry Expanding Profits 5.5% 6.9% 3.8% 3.6% 5.5% 4.3% 6.3% 7.2% 7.7% 8.3% 12-14% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 2020 Operating Income % of Sales Platinum Vision 11.6% B & C 31% Transportation 19% W & C 16% Industrial 13% Appliances 7% Consumer 5% Packaging 5% E & E 3% Healthcare 1% United States 79% Canada 14% Latin America 5% Asia 2% Key Applications POLYONE CORPORATION 26 2015 Revenue: $1.0 Billion At a Glance: Distribution Key Suppliers ROIC Expanding Profits 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% 6.4% 5.9% 6.1% 6.6% 6.5-7.5% 6.6% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 2020 Operating Income % of Sales Platinum Vision 15% 53% 2006 3Q 2016 Transportation 24% Healthcare 23% Industrial 16% Consumer 13% E & E 6% Appliances 6% W & C 4% Packaging 4% B & C 4% http://www.polyone.com/Pages/VariationRoot.aspx 27 POLYONE CORPORATION Application Examples POLYONE CORPORATION 28 Luxury Packaging with Gravitech Density Modified Polymers 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 POLYONE CORPORATION 29 Medical Device Housings with Chemically Resistant Engineered Polymers 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 POLYONE CORPORATION 30 Printed Circuit Boards with Thermally Conductive Polymers Replaces metal by etching circuit designs into thermally conductive plastic Maintains heat transfer and cooling capabilities of metals Reduces both weight and cost Increases the lifetime and reliability of electronic systems POLYONE CORPORATION 31 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 POLYONE CORPORATION 32 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 33 Fiber Colorants Solutions for clothing, apparel, footwear, automotive & sporting goods 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 POLYONE CORPORATION 34 Improve performance and reduce cost through light-weighting, reduced waste, faster cycle times and extended shelf life Aligned with megatrend of facing climate and resource challenges: Sustainability benefits include lower package weight and improved recyclability of package at end of use Shelf-life extension Greater product consistency Recyclability and reduced carbon footprint Color and Special Effects Weight reduction Enhanced product aesthetics High heat resistance Preservative Technology POLYONE CORPORATION 35 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 36 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 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.
https://www.avient.com/sites/default/files/2021-06/avient-ir-presentation-june-2021-w-non-gaap-recs_0.pdf
Operating Income $3,783 $4,100 2020PF 2021E Adjusted EPS (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition Previous Guidance Current Guidance $3,783 $4,300 2020PF 2021E $308 $360 2020PF 2021E $308 $410 2020PF 2021E $1.93 $2.40 2020PF 2021E $1.93 $2.80 2020PF 2021E (1) (1)(1) (1)(1) (1) (in millions) (in millions) $442 $457 $560 2019PF 2020PF 2021E $1.74 $1.93 $2.80 2019PF 2020PF 2021E FULL YEAR 2019 – 2021 ORGANIC GROWTH (TOTAL COMPANY) 23 Sales Adjusted EBITDA $3,981 $3,783 $4,300 2019PF 2020PF 2021E + 8% Adjusted EPS (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition (1) (1) (in millions) (in millions) (1)(1) + 27% + 61% (1) (1) 24 BALANCE SHEET • Deleveraging to 1.9x net debt to adjusted EBITDA by the end of 2021 • Driven by record adjusted EBITDA performance and strong free cash flow generation from asset light business • Future cash deployment: M&A, opportunistic share repurchases and balance sheet / continued leverage reduction 3.5x 2.7x 1.9x 2019PF 2020PF 2021E Net Debt / Adjusted EBITDA (1) (1) ($ in millions) 2021E Adjusted EBITDA 560$ Free Cash Flow 275$ Total Debt 1,860 Less: Cash (800) Net Debt 1,060$ 2021E Net Debt / Adjusted EBITDA 1.9x (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition PEER COMPARISONS 25 As a specialty formulator, we don’t require significant capital investment, as compared to the base resin raw material suppliers we purchase from.
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 4 4 4 5 5 5 5 6 7 8 23 A vi e nt A vi e nt ( E xc l.
APPENDIX Performance Additives 15% Pigments 15% TiO2 12% Dyestuffs 4%Polyethylene 10% Nylon 5% Polypropylene 4% Other Raw Materials 29% Styrenic Block Copolymer 6% ~1/3 hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials 31 • Exiting 2020, the majority of hydrocarbon based raw material markets were experiencing price inflation and tight inventory • Winter Storm Uri in the Gulf Coast caused further stress on the situation for 2021 • Raw materials most impacted include polyethylene, polypropylene and nylon • We purchase over 8,000 different raw materials to formulate our customized solutions and unique specifications Annual Purchases RAW MATERIAL UPDATE Based on 2020 pro forma purchases, excludes Distribution business SEGMENT DATA U.S. & Canada 50% EMEA 26% Asia 16% Latin America 8% 2020 SEGMENT, END MARKET AND GEOGRAPHY 33 GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 23% Packaging 21%Industrial 15% Wire & Cable 6% Building & Construction 6% Electrical & Electronics 4% END MARKET REVENUE Transportation 10% Healthcare 15% All data reflects 2020 Pro forma for acquisition of the Clariant Masterbatch business. (1) The total company sales and EBITDA of $3,783M and $457M, respectively, include intercompany sales eliminations and corporate costs $2,043M $331M $709M $124M $1,110M $70M Sales EBITDA Distribution Specialty Engineered Materials Color Additives and Inks $457M$3,783M (1) Packaging 35% Consumer 23% Healthcare 8% Industrial 14% Building & Construction 8% Transportation 7% Wire & Cable 3% Electrical & Electronics 2% C O L O R , A D D I T I V E S & I N K S 2020 PF REVENUE | $2 .0 BILLION US & Canada 31% EMEA 40% Asia 22% Latin America 7% END MARKET REGION 34 2020 figures Pro forma for acquisition of the Clariant Masterbatch business S P E C I A LT Y E N G I N E E R E D M AT E R I A L S Consumer 24% Healthcare 10% Packaging 6% Wire & Cable(1) 24% Electrical & Electronics 13% Transportation 11% Industrial 10% Building & Construction 2% 2020 REVENUE | $709 MILLION END MARKET US & Canada 58% EMEA 23% Asia 19% REGION 35 (1) Approximately 50% of Wire and Cable sales are associated with Fiber Optic Cabling DI S TR IBU T I ON 2020 REVENUE | $1 .1 B ILL ION Healthcare 29% Consumer 25% Packaging 2% Industrial 20% Transportation 14% Electrical & Electronics 5% Building & Construction 4% Wire & Cable 1% US & Canada 82% Asia 3% Latin America 15% END MARKET REGION K E Y S U P P L I ER S 36 TOTA L C O M PA N Y R E G I O N A L S A L E S BY END MARKET Packaging 32% Consumer 27% Healthcare 12% Industrial 6% Wire & Cable 6% Building & Construction 4% Electrical & Electronics 9% Asia (16% of sales) Transportation 4% Packaging 34% Consumer 16%Healthcare 5% Industrial 17% Wire & Cable 10% Building & Construction 8% Electrical & Electronics 3% EMEA (26% of sales) Transportation 7% 2020 figures Pro forma for acquisition of the Clariant Masterbatch business 37 Transportation 10% Consumer 26% Healthcare 19% Packaging 13% Industrial 16% Wire & Cable 7% Building & Construction 5% Electrical & Electronics 4% US & Canada (50% of sales) Packaging 45% Consumer 29% Healthcare 6% Industrial 8% Building & Construction 3% Electrical & Electronics 2% Wire & Cable 1% LATAM (8% of sales) Transportation 6% Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Three Months Ended March 31, 2021 Reconciliation to Condensed Consolidated Statements of Income GAAP Results Special Items Adjusted Results Income from continuing operations before income taxes $ 102.6 $ 2.4 $ 105.0 Income tax expense - GAAP (22.9) — (22.9) Income tax impact of special items — (0.9) (0.9) Tax adjustments — 1.1 1.1 Net income attributable to noncontrolling interests (0.4) — (0.4) Net income from continuing operations attributable to Avient shareholders $ 79.3 $ 2.6 $ 81.9 Net income / EPS $ 0.86 0.03 $ 0.89 Weighted-average diluted shares 92.2 92.2 92.2 Reconciliation to Consolidated Statements of Income Three Months Ended March 31, 2021 Operating income - GAAP $ 120.4 Special items in operating income 2.4 Adjusted Operating income $ 122.8 1 Business Segment Operations Three Months Ended March 31, Year Ended December 31, 2021 2020 2020 2019 2018 Sales: Color, Additives and Inks $ 609.3 $ 256.5 $ 1,502.9 $ 1,003.8 $ 1,046.5 Specialty Engineered Materials 216.5 185.3 708.8 745.7 645.8 Distribution 362.7 289.5 1,110.3 1,192.2 1,265.4 Corporate and eliminations (26.2) (19.8) (79.9) (79.0) (76.7) Sales $ 1,162.3 $ 711.5 $ 3,242.1 $ 2,862.7 $ 2,881.0 Gross margin: Color, Additives and Inks $ 197.5 $ 89.4 $ 484.4 $ 338.4 $ 353.4 Specialty Engineered Materials 64.7 52.6 207.6 200.2 171.7 Distribution 39.3 33.6 124.0 132.1 125.8 Corporate and eliminations 0.9 (4.1) (31.7) (13.5) (26.1) Gross margin $ 302.4 $ 171.5 $ 784.3 $ 657.2 $ 624.8 Selling and administrative expense: Color, Additives and Inks $ 108.7 $ 48.9 $ 303.6 $ 191.0 $ 194.9 Specialty Engineered Materials 30.5 30.3 113.2 116.5 99.4 Distribution 15.3 14.2 54.5 56.7 54.3 Corporate and eliminations 27.5 25.3 123.7 136.2 97.6 Selling and administrative expense $ 182.0 $ 118.7 $ 595.0 $ 500.4 $ 446.2 Operating income: Color, Additives and Inks $ 88.8 $ 40.5 $ 180.8 $ 147.4 $ 158.5 Specialty Engineered Materials 34.2 22.3 94.4 83.7 72.3 Distribution 24.0 19.4 69.5 75.4 71.5 Corporate and eliminations (26.6) (29.4) (155.4) (149.7) (123.7) Operating income $ 120.4 $ 52.8 $ 189.3 $ 156.8 $ 178.6 Earnings before interest, taxes, depreciation and amortization (EBITDA): Color, Additives and Inks $ 116.2 $ 51.4 $ 255.9 $ 190.1 $ 202.8 Specialty Engineered Materials 42.0 29.8 124.4 113.2 95.5 Distribution 24.2 19.5 70.2 75.9 72.2 Corporate and eliminations (24.9) (28.0) (146.2) (144.3) (119.3) Other income, net 1.5 1.6 24.3 12.1 (12.9) EBITDA $ 159.0 $ 74.3 $ 328.6 $ 247.0 $ 238.3 EBITDA as a % of Sales: Color, Additives and Inks 19.1 % 20.0 % 17.0 % 18.9 % 19.4 % Specialty Engineered Materials 19.4 % 16.1 % 17.6 % 15.2 % 14.8 % Distribution 6.7 % 6.7 % 6.3 % 6.4 % 5.7 % 2 Reconciliation of Pro Forma EBITDA - Color, Additives and Inks Three Months Ended March 31, Year Ended December 31, 2021 2020 2020 2019 2018 Sales: Color, Additives and Inks $ 609.3 $ 256.5 $ 1,502.9 $ 1,003.8 $ 1,046.5 Clariant MB pro forma adjustments(1) — 279.4 540.4 1,118.6 1,209.8 Pro forma sales $ 609.3 $ 535.9 $ 2,043.3 $ 2,122.4 $ 2,256.3 Operating income: Color, Additives and Inks $ 88.8 $ 40.5 $ 180.8 $ 147.4 $ 158.5 Clariant MB pro forma adjustments(1) — 23.0 45.0 72.9 80.3 Pro forma operating income $ 88.8 $ 63.5 $ 225.8 $ 220.3 $ 238.8 Depreciation & amortization: Color, Additives and Inks $ 27.4 $ 10.9 $ 75.1 $ 42.7 $ 44.3 Clariant MB pro forma adjustments(1) — 15.1 30.1 60.3 61.2 Pro forma depreciation & amortization $ 27.4 $ 26.0 $ 105.2 $ 103.0 $ 105.5 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA): Color, Additives and Inks $ 116.2 $ 51.4 $ 255.9 $ 190.1 $ 202.8 Clariant MB pro forma adjustments(1) — 38.1 75.1 133.2 141.5 Pro forma EBITDA $ 116.2 $ 89.5 $ 331.0 $ 323.3 $ 344.3 Pro forma EBITDA as a % of Sales 19.1 % 16.7 % 16.2 % 15.2 % 15.3 % Three Months Ended March 31, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient Sales $ 711.5 $ — $ 711.5 $ 279.4 $ 990.9 Operating income 52.8 9.7 62.5 23.0 85.5 Interest expense, net (9.4) — (9.4) (12.8) (22.2) Other income, net 1.6 (0.1) 1.5 — 1.5 Income taxes (11.9) (1.0) (12.9) (2.4) (15.3) Net income from continuing operations attributable to Avient shareholders $ 33.1 $ 8.6 $ 41.7 $ 7.8 $ 49.5 Weighted average diluted shares 86.7 Impact to diluted shares from January 2020 equity offering 6.1 Weighted average diluted shares 92.8 EPS $ 0.53 (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 3 Three Months Ended June 30, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(2) Pro Forma Adjusted Avient Sales $ 609.1 $ — $ 609.1 $ 261.1 $ 870.2 Operating income $ 38.0 $ 9.0 $ 47.0 $ 22.0 $ 69.0 Interest expense, net (16.2) — (16.2) (5.3) (21.5) Other income, net 9.5 (0.3) 9.2 — 9.2 Income taxes (7.9) 0.7 (7.2) (3.8) (11.0) Net income attributable to non controlling interests (0.4) — (0.4) — (0.4) Net income from continuing operations attributable to Avient shareholders $ 23.0 $ 9.4 $ 32.4 $ 12.9 $ 45.3 Weighted average diluted shares 91.8 Impact to diluted shares from January 2020 equity offering 15.3 Pro forma weighted average diluted shares 107.1 Pro forma adjusted EPS $ 0.42 (2) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition Year Ended December 31, Reconciliation to Adjusted EBITDA 2020 2019 2018 Net income from continuing operations – GAAP $ 133.8 $ 75.7 $ 87.4 Income tax expense 5.2 33.7 14.4 Interest expense 74.6 59.5 62.8 Debt extinguishment cost — — 1.1 Depreciation and amortization from continuing operations 115.0 78.1 72.6 EBITDA $ 328.6 $ 247.0 $ 238.3 Special items, before tax 66.2 61.7 59.5 Interest expense included in special items (10.1) — — Accelerated depreciation included in special items (3.2) — (3.0) Adjusted EBITDA $ 381.6 $ 308.7 $ 294.8 4 Year Ended December 31, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(3) Pro Forma Adjusted Avient Sales $ 3,242.1 $ — $ 3,242.1 $ 540.4 $ 3,782.5 Operating income $ 189.3 $ 73.7 $ 263.0 $ 45.0 $ 308.0 Interest expense, net (74.6) 10.1 (64.5) (18.1) (82.6) Other income, net 24.3 (17.6) 6.7 — 6.7 Income taxes (5.2) (41.4) (46.6) (6.2) (52.8) Net income attributable to noncontrolling interests (1.8) — (1.8) — (1.8) Net income from continuing operations attributable to Avient shareholders $ 132.0 $ 24.8 $ 156.8 $ 20.7 $ 177.5 Weighted average diluted shares 90.6 Impact to diluted shares from January 2020 equity offering 1.5 Pro forma weighted average diluted shares 92.1 Pro forma adjusted EPS $ 1.93 Reconciliation of Pro Forma Adjusted EBITDA from continuing operations Operating income and other income, net $ 213.6 $ — $ 56.1 $ 269.7 $ 45.0 $ — $ 314.7 Depreciation and amortization 115.0 (3.2) 111.8 30.1 141.9 EBITDA from continuing operations $ 328.6 $ 52.9 $ 381.5 $ 75.1 $ 456.6 Year Ended December 31, 2019 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient Sales $ 2,862.7 $ — $ 2,862.7 $ 1,118.6 $ 3,981.3 Operating income $ 156.8 $ 71.7 $ 228.5 $ 72.9 $ 301.4 Interest expense, net (59.5) — (59.5) (33.4) (92.9) Other income, net 12.1 (10.0) 2.1 — 2.1 Income taxes (33.7) (5.9) (39.6) (9.1) (48.7) Net income attributable to noncontrolling interests (0.2) — (0.2) — (0.2) Net income from continuing operations attributable to Avient shareholders $ 75.5 $ 55.8 $ 131.3 $ 30.4 $ 161.7 Weighted average diluted shares 77.7 Impact to diluted shares from January 2020 equity offering 15.3 Pro forma weighted average diluted shares 93.0 Pro forma adjusted EPS $ 1.74 Reconciliation of Pro Forma Adjusted EBITDA from continuing operations Operating income and other income, net $ 168.9 $ — $ 61.7 $ 230.6 $ 72.9 $ — $ 303.5 Depreciation and amortization 78.1 — 78.1 60.3 138.4 EBITDA from continuing operations $ 247.0 $ 61.7 $ 308.7 $ 133.2 $ 441.9 (3) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 5 Avient IR Presentation - June 2021.pdf Avient IR Presentation - June 2021 w Non GAAP Recs.pdf Avient IR Presentation - May 2021 w Non-GAAP Recs.pdf AVNT First Quarter 2021 Earnings Presentation.pdf AVNT First Quarter 2021 Earnings Presentation.pdf AVNT First Quarter 2021 Earnings Presentation.pdf AVNT First Quarter 2021 Earnings Presentation.pdf 4.29 127pm Q1 21 IR Deck Version non-GAAP Recs (002).pdf
https://www.avient.com/sites/default/files/2022-09/PREPERM for 5G Application Bulletin %281%29.pdf
• Stable and controlled dielectric constant - from 2.6 to 23 • Very low losses even at mmWaves • Isotropic material - no glass fibers • Can be injection molded and machined APPLICATION BULLETIN STABLE RF PROPERTIES OVER A WIDE FREQUENCY RANGE 0,0 2,0 4,0 6,0 8,0 10,0 12,0 0 10 20 30 40 50 60 D ie le ct ri c co ns ta nt F requency [GHz ] PR E PE RM® PPE 95 0 PR E PE RM® PPE 80 0 PR E PE RM® PPE 44 0 PR E PE RM® PPE 32 0 PR E PE RM® PPE 26 0 LOW LOSSES UP TO mmWAVE FREQUENCIES* BATCH-TO-BATCH STABILITY DURING PRODUCTION * Measurements performed at VTT Technical Research Centre of Finland Ltd in 2018.
https://www.avient.com/sites/default/files/2020-10/trilliant-xr-product-bulletin.pdf
PRODUCT BULLETIN PROPERTY TEST METHOD TYPICAL VALUE (ENGLISH) TYPICAL VALUE (SI) Specific Gravity ASTM D-792 11.0 11.0 Tensile Modulus1 ASTM D-638 1.20E+6 psi 8270 MPa Tensile Strength1 (Yield) ASTM D-638 3,950 psi 27.2 MPa Flexural Modulus ASTM D-790 800,000 psi 5520 MPa Flexural Strength ASTM D-790 7,000 psi 48.3 MPa Notched Izod Impact2 ASTM D-256A 2.1 ft•lb/in 110 J/m Deflection Temperature Under Load 66 psi (0.45 MPa), Unannealed, 0.250 in (6.35mm) ASTM D-648 280°F 138°C Deflection Temperature Under Load 264 psi (1.8 MPa), Unannealed, 0.250 in (6.35mm) ASTM D-648 190°F 87.8°C TECHNICAL PROPERTIES 1 Type I, 0.20 in/min (5.1 mm/min) 2 73°F (23°C), 0.125 in (3.18 mm), Injection molded www.avient.com Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2023-12/_ECCOH LSFOH 5983 Formulations Product Bulletin.pdf
KEY CHARACTERISTICS ECCOH 5924 FORMULATION ECCOH 5981 FORMULATION ECCOH 5983 UV FORMULATION Material Standards BS7655-6, 1 (LTS1–4), BS6724, IEC 60502 BS7655-6, 1 (LTS3) BS7655-6, 1 (LTS1–4) Tear Strength at 23°C 7.7 N/mm 10 N/mm 11 N/mm Tear Strength at 65°C 2.3 N/mm 5 N/mm 6.5 N/mm Hot Pressure Test (6h at 90°C) 39% –
https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202012%2520-%2520Financial%2520Review.pdf
Page 93 2011 Highlights • Versus 2010, revenue growth of 9% drives 23% increase in adjusted operating income • Adjusted EPS expands 29% to all-time high of $1.02 Net Sales Adjusted Operating $1.02 Adjusted EPS $2,622 $2,643 $2,739 $2,061 $2,622 $2,864 Net Sales $88 $87 $72 $59 $147 $181 Adjusted Operating Income $0.12 $0.27 $0.21 $0.13 $0.79 $1.02 ($ millions) ($ millions) Page 94 2011 Highlights • Each platform contributed to our year over year operating income growth • Record OI achieved in Specialty and POD • Ten quarters of double-digit adjusted EPS expansion POD PP&SSpecialty Platform ROS%* 0.6% 1.5% 3.2% 4.3% 5.3% 8.4% 8.0% 2.9% 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% 6.7% 5.5% 6.1% 3.1% 5.0% 7.0% 7.2% $20 $19 $22 $28 $25 $42 $56 O p e ra ti n g I n co m e POD $76 $64 $66 $31 $33 $54 $62 O p e ra ti n g In co m e PP&S $5 $13 $31 $46 $46 $87 $89 O p e ra ti n g I n co m e Specialty Platform *ROS% is defined as adjusted operating income % of revenue ($ millions) Page 95 2011 Highlights • Continued portfolio repositioning � Sale of SunBelt equity investment � Acquisition of specialty companies ColorMatrix and Uniplen • World-class working capital of 9.6% maintained while improving on-time delivery to 94%improving on-time delivery to 94% 81% 87% 88% 95% 93% 92% 94% 2005 2006 2007 2008 2009 2010 2011 14.3% 16.2% 14.4% 18.9% 11.7% 9.6% 9.6% 2005 2006 2007 2008 2009 2010 2011 On-Time Delivery Working Capital % of Sales Page 96 First Quarter 2012 Highlights • Revenues increased 9% over Q1 2011 to a new quarterly record • Adjusted EPS increased 12% $0.26 $0.29 Q1 2011 Q1 2012 Adjusted EPS • Adjusted EPS increased 12% over prior year • All platforms delivered double-digit operating income growth Q1 2011 Q1 2012 $25.2 $14.7 $29.1 $17.8 $16.7 Specialty PP&S POD Q1 2011 Q1 2012 Adjusted Operating Income $14.3 ($ millions) Page 97 • Total Debt at 3/31/12 Less: Cash Net Debt • Available Liquidity $706 186 $520 $300 $360 $250 $300 $350 $400 $450 Debt Maturities As of March 31, 2012 ($ millions) Debt Maturities & Liquidity Summary – 3/31/12 • Available Liquidity Cash ABL Availability Total Liquidity • Net Debt / EBITDA* = 1.9x $186 156 $342 *Adjusted EBITDA TTM Pro forma for ColorMatrix $50 $300 $0 $50 $100 $150 $200 $250 2015 2017 2020 Page 98 • Repurchased 6 million shares in 2011 Share Share RepurchaseRepurchase • Introduced a quarterly dividend in Q1 2011 and increased in Q1 DividendsDividends • Expanding our sales, marketing, and technical capabilities is top Organic Organic GrowthGrowth • Targets that expand our: • Specialty offering • End market presence AcquisitionsAcquisitions Use of Cash Current Cash Balance = $186M Net Debt / EBITDA* = 1.9X • 7.9 million shares remain available for repurchase under the current authorization increased in Q1 2012 • Objective of maintaining and growing capabilities is top priority • Investing in operational and LSS initiatives • CAPEX • End market presence • Geographic footprint • Synergy opportunities • Adjacent material solutions *Adjusted EBITDA TTM Pro forma for ColorMatrix Page 99 Page 100
https://www.avient.com/sites/default/files/2021-06/avient-ir-presentation-may-2021-w-non-gaap-recs.pdf
Operating Income $3,783 $4,100 2020PF 2021E Adjusted EPS (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition Previous Guidance Current Guidance $3,783 $4,300 2020PF 2021E $308 $360 2020PF 2021E $308 $410 2020PF 2021E $1.93 $2.40 2020PF 2021E $1.93 $2.80 2020PF 2021E (1) (1)(1) (1)(1) (1) (in millions) (in millions) $442 $457 $560 2019PF 2020PF 2021E $1.74 $1.93 $2.80 2019PF 2020PF 2021E FULL YEAR 2019 – 2021 ORGANIC GROWTH (TOTAL COMPANY) 23 Sales Adjusted EBITDA $3,981 $3,783 $4,300 2019PF 2020PF 2021E + 8% Adjusted EPS (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition (1) (1) (in millions) (in millions) (1)(1) + 27% + 61% (1) (1) 24 BALANCE SHEET • Deleveraging to 1.9x net debt to adjusted EBITDA by the end of 2021 • Driven by record adjusted EBITDA performance and strong free cash flow generation from asset light business • Future cash deployment: M&A, opportunistic share repurchases and balance sheet / continued leverage reduction 3.5x 2.7x 1.9x 2019PF 2020PF 2021E Net Debt / Adjusted EBITDA (1) (1) ($ in millions) 2021E Adjusted EBITDA 560$ Free Cash Flow 275$ Total Debt 1,860 Less: Cash (800) Net Debt 1,060$ 2021E Net Debt / Adjusted EBITDA 1.9x (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition PEER COMPARISONS 25 As a specialty formulator, we don’t require significant capital investment, as compared to the base resin raw material suppliers we purchase from.
APPENDIX Performance Additives 15% Pigments 15% TiO2 12% Dyestuffs 4%Polyethylene 10% Nylon 5% Polypropylene 4% Other Raw Materials 29% Styrenic Block Copolymer 6% ~1/3 hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials 31 • Exiting 2020, the majority of hydrocarbon based raw material markets were experiencing price inflation and tight inventory • Winter Storm Uri in the Gulf Coast caused further stress on the situation for 2021 • Raw materials most impacted include polyethylene, polypropylene and nylon • We purchase over 8,000 different raw materials to formulate our customized solutions and unique specifications Annual Purchases RAW MATERIAL UPDATE Based on 2020 pro forma purchases, excludes Distribution business SEGMENT DATA U.S. & Canada 50% EMEA 26% Asia 16% Latin America 8% 2020 SEGMENT, END MARKET AND GEOGRAPHY 33 GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 23% Packaging 21%Industrial 15% Wire & Cable 6% Building & Construction 6% Electrical & Electronics 4% END MARKET REVENUE Transportation 10% Healthcare 15% All data reflects 2020 Pro forma for acquisition of the Clariant Masterbatch business. (1) The total company sales and EBITDA of $3,783M and $457M, respectively, include intercompany sales eliminations and corporate costs $2,043M $331M $709M $124M $1,110M $70M Sales EBITDA Distribution Specialty Engineered Materials Color Additives and Inks $457M$3,783M (1) Packaging 35% Consumer 23% Healthcare 8% Industrial 14% Building & Construction 8% Transportation 7% Wire & Cable 3% Electrical & Electronics 2% C O L O R , A D D I T I V E S & I N K S 2020 PF REVENUE | $2 .0 BILLION US & Canada 31% EMEA 40% Asia 22% Latin America 7% END MARKET REGION 34 2020 figures Pro forma for acquisition of the Clariant Masterbatch business S P E C I A LT Y E N G I N E E R E D M AT E R I A L S Consumer 24% Healthcare 10% Packaging 6% Wire & Cable(1) 24% Electrical & Electronics 13% Transportation 11% Industrial 10% Building & Construction 2% 2020 REVENUE | $709 MILLION END MARKET US & Canada 58% EMEA 23% Asia 19% REGION 35 (1) Approximately 50% of Wire and Cable sales are associated with Fiber Optic Cabling DI S TR IBU T I ON 2020 REVENUE | $1 .1 B ILL ION Healthcare 29% Consumer 25% Packaging 2% Industrial 20% Transportation 14% Electrical & Electronics 5% Building & Construction 4% Wire & Cable 1% US & Canada 82% Asia 3% Latin America 15% END MARKET REGION K E Y S U P P L I ER S 36 TOTA L C O M PA N Y R E G I O N A L S A L E S BY END MARKET Packaging 32% Consumer 27% Healthcare 12% Industrial 6% Wire & Cable 6% Building & Construction 4% Electrical & Electronics 9% Asia (16% of sales) Transportation 4% Packaging 34% Consumer 16%Healthcare 5% Industrial 17% Wire & Cable 10% Building & Construction 8% Electrical & Electronics 3% EMEA (26% of sales) Transportation 7% 2020 figures Pro forma for acquisition of the Clariant Masterbatch business 37 Transportation 10% Consumer 26% Healthcare 19% Packaging 13% Industrial 16% Wire & Cable 7% Building & Construction 5% Electrical & Electronics 4% US & Canada (50% of sales) Packaging 45% Consumer 29% Healthcare 6% Industrial 8% Building & Construction 3% Electrical & Electronics 2% Wire & Cable 1% LATAM (8% of sales) Transportation 6% Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Three Months Ended March 31, 2021 Reconciliation to Condensed Consolidated Statements of Income GAAP Results Special Items Adjusted Results Income from continuing operations before income taxes $ 102.6 $ 2.4 $ 105.0 Income tax expense - GAAP (22.9) — (22.9) Income tax impact of special items — (0.9) (0.9) Tax adjustments — 1.1 1.1 Net income attributable to noncontrolling interests (0.4) — (0.4) Net income from continuing operations attributable to Avient shareholders $ 79.3 $ 2.6 $ 81.9 Net income / EPS $ 0.86 0.03 $ 0.89 Weighted-average diluted shares 92.2 92.2 92.2 Reconciliation to Consolidated Statements of Income Three Months Ended March 31, 2021 Operating income - GAAP $ 120.4 Special items in operating income 2.4 Adjusted Operating income $ 122.8 1 Business Segment Operations Three Months Ended March 31, Year Ended December 31, 2021 2020 2020 2019 2018 Sales: Color, Additives and Inks $ 609.3 $ 256.5 $ 1,502.9 $ 1,003.8 $ 1,046.5 Specialty Engineered Materials 216.5 185.3 708.8 745.7 645.8 Distribution 362.7 289.5 1,110.3 1,192.2 1,265.4 Corporate and eliminations (26.2) (19.8) (79.9) (79.0) (76.7) Sales $ 1,162.3 $ 711.5 $ 3,242.1 $ 2,862.7 $ 2,881.0 Gross margin: Color, Additives and Inks $ 197.5 $ 89.4 $ 484.4 $ 338.4 $ 353.4 Specialty Engineered Materials 64.7 52.6 207.6 200.2 171.7 Distribution 39.3 33.6 124.0 132.1 125.8 Corporate and eliminations 0.9 (4.1) (31.7) (13.5) (26.1) Gross margin $ 302.4 $ 171.5 $ 784.3 $ 657.2 $ 624.8 Selling and administrative expense: Color, Additives and Inks $ 108.7 $ 48.9 $ 303.6 $ 191.0 $ 194.9 Specialty Engineered Materials 30.5 30.3 113.2 116.5 99.4 Distribution 15.3 14.2 54.5 56.7 54.3 Corporate and eliminations 27.5 25.3 123.7 136.2 97.6 Selling and administrative expense $ 182.0 $ 118.7 $ 595.0 $ 500.4 $ 446.2 Operating income: Color, Additives and Inks $ 88.8 $ 40.5 $ 180.8 $ 147.4 $ 158.5 Specialty Engineered Materials 34.2 22.3 94.4 83.7 72.3 Distribution 24.0 19.4 69.5 75.4 71.5 Corporate and eliminations (26.6) (29.4) (155.4) (149.7) (123.7) Operating income $ 120.4 $ 52.8 $ 189.3 $ 156.8 $ 178.6 Earnings before interest, taxes, depreciation and amortization (EBITDA): Color, Additives and Inks $ 116.2 $ 51.4 $ 255.9 $ 190.1 $ 202.8 Specialty Engineered Materials 42.0 29.8 124.4 113.2 95.5 Distribution 24.2 19.5 70.2 75.9 72.2 Corporate and eliminations (24.9) (28.0) (146.2) (144.3) (119.3) Other income, net 1.5 1.6 24.3 12.1 (12.9) EBITDA $ 159.0 $ 74.3 $ 328.6 $ 247.0 $ 238.3 EBITDA as a % of Sales: Color, Additives and Inks 19.1 % 20.0 % 17.0 % 18.9 % 19.4 % Specialty Engineered Materials 19.4 % 16.1 % 17.6 % 15.2 % 14.8 % Distribution 6.7 % 6.7 % 6.3 % 6.4 % 5.7 % 2 Reconciliation of Pro Forma EBITDA - Color, Additives and Inks Three Months Ended March 31, Year Ended December 31, 2021 2020 2020 2019 2018 Sales: Color, Additives and Inks $ 609.3 $ 256.5 $ 1,502.9 $ 1,003.8 $ 1,046.5 Clariant MB pro forma adjustments(1) — 279.4 540.4 1,118.6 1,209.8 Pro forma sales $ 609.3 $ 535.9 $ 2,043.3 $ 2,122.4 $ 2,256.3 Operating income: Color, Additives and Inks $ 88.8 $ 40.5 $ 180.8 $ 147.4 $ 158.5 Clariant MB pro forma adjustments(1) — 23.0 45.0 72.9 80.3 Pro forma operating income $ 88.8 $ 63.5 $ 225.8 $ 220.3 $ 238.8 Depreciation & amortization: Color, Additives and Inks $ 27.4 $ 10.9 $ 75.1 $ 42.7 $ 44.3 Clariant MB pro forma adjustments(1) — 15.1 30.1 60.3 61.2 Pro forma depreciation & amortization $ 27.4 $ 26.0 $ 105.2 $ 103.0 $ 105.5 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA): Color, Additives and Inks $ 116.2 $ 51.4 $ 255.9 $ 190.1 $ 202.8 Clariant MB pro forma adjustments(1) — 38.1 75.1 133.2 141.5 Pro forma EBITDA $ 116.2 $ 89.5 $ 331.0 $ 323.3 $ 344.3 Pro forma EBITDA as a % of Sales 19.1 % 16.7 % 16.2 % 15.2 % 15.3 % Three Months Ended March 31, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient Sales $ 711.5 $ — $ 711.5 $ 279.4 $ 990.9 Operating income 52.8 9.7 62.5 23.0 85.5 Interest expense, net (9.4) — (9.4) (12.8) (22.2) Other income, net 1.6 (0.1) 1.5 — 1.5 Income taxes (11.9) (1.0) (12.9) (2.4) (15.3) Net income from continuing operations attributable to Avient shareholders $ 33.1 $ 8.6 $ 41.7 $ 7.8 $ 49.5 Weighted average diluted shares 86.7 Impact to diluted shares from January 2020 equity offering 6.1 Weighted average diluted shares 92.8 EPS $ 0.53 (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 3 Three Months Ended June 30, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(2) Pro Forma Adjusted Avient Sales $ 609.1 $ — $ 609.1 $ 261.1 $ 870.2 Operating income $ 38.0 $ 9.0 $ 47.0 $ 22.0 $ 69.0 Interest expense, net (16.2) — (16.2) (5.3) (21.5) Other income, net 9.5 (0.3) 9.2 — 9.2 Income taxes (7.9) 0.7 (7.2) (3.8) (11.0) Net income attributable to non controlling interests (0.4) — (0.4) — (0.4) Net income from continuing operations attributable to Avient shareholders $ 23.0 $ 9.4 $ 32.4 $ 12.9 $ 45.3 Weighted average diluted shares 91.8 Impact to diluted shares from January 2020 equity offering 15.3 Pro forma weighted average diluted shares 107.1 Pro forma adjusted EPS $ 0.42 (2) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition Year Ended December 31, Reconciliation to Adjusted EBITDA 2020 2019 2018 Net income from continuing operations – GAAP $ 133.8 $ 75.7 $ 87.4 Income tax expense 5.2 33.7 14.4 Interest expense 74.6 59.5 62.8 Debt extinguishment cost — — 1.1 Depreciation and amortization from continuing operations 115.0 78.1 72.6 EBITDA $ 328.6 $ 247.0 $ 238.3 Special items, before tax 66.2 61.7 59.5 Interest expense included in special items (10.1) — — Accelerated depreciation included in special items (3.2) — (3.0) Adjusted EBITDA $ 381.6 $ 308.7 $ 294.8 4 Year Ended December 31, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(3) Pro Forma Adjusted Avient Sales $ 3,242.1 $ — $ 3,242.1 $ 540.4 $ 3,782.5 Operating income $ 189.3 $ 73.7 $ 263.0 $ 45.0 $ 308.0 Interest expense, net (74.6) 10.1 (64.5) (18.1) (82.6) Other income, net 24.3 (17.6) 6.7 — 6.7 Income taxes (5.2) (41.4) (46.6) (6.2) (52.8) Net income attributable to noncontrolling interests (1.8) — (1.8) — (1.8) Net income from continuing operations attributable to Avient shareholders $ 132.0 $ 24.8 $ 156.8 $ 20.7 $ 177.5 Weighted average diluted shares 90.6 Impact to diluted shares from January 2020 equity offering 1.5 Pro forma weighted average diluted shares 92.1 Pro forma adjusted EPS $ 1.93 Reconciliation of Pro Forma Adjusted EBITDA from continuing operations Operating income and other income, net $ 213.6 $ — $ 56.1 $ 269.7 $ 45.0 $ — $ 314.7 Depreciation and amortization 115.0 (3.2) 111.8 30.1 141.9 EBITDA from continuing operations $ 328.6 $ 52.9 $ 381.5 $ 75.1 $ 456.6 Year Ended December 31, 2019 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient Sales $ 2,862.7 $ — $ 2,862.7 $ 1,118.6 $ 3,981.3 Operating income $ 156.8 $ 71.7 $ 228.5 $ 72.9 $ 301.4 Interest expense, net (59.5) — (59.5) (33.4) (92.9) Other income, net 12.1 (10.0) 2.1 — 2.1 Income taxes (33.7) (5.9) (39.6) (9.1) (48.7) Net income attributable to noncontrolling interests (0.2) — (0.2) — (0.2) Net income from continuing operations attributable to Avient shareholders $ 75.5 $ 55.8 $ 131.3 $ 30.4 $ 161.7 Weighted average diluted shares 77.7 Impact to diluted shares from January 2020 equity offering 15.3 Pro forma weighted average diluted shares 93.0 Pro forma adjusted EPS $ 1.74 Reconciliation of Pro Forma Adjusted EBITDA from continuing operations Operating income and other income, net $ 168.9 $ — $ 61.7 $ 230.6 $ 72.9 $ — $ 303.5 Depreciation and amortization 78.1 — 78.1 60.3 138.4 EBITDA from continuing operations $ 247.0 $ 61.7 $ 308.7 $ 133.2 $ 441.9 (3) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 5 Avient IR Presentation - May 2021.pdf Avient IR Presentation - May 2021 w Non-GAAP Recs.pdf AVNT First Quarter 2021 Earnings Presentation.pdf AVNT First Quarter 2021 Earnings Presentation.pdf AVNT First Quarter 2021 Earnings Presentation.pdf AVNT First Quarter 2021 Earnings Presentation.pdf 4.29 127pm Q1 21 IR Deck Version non-GAAP Recs (002).pdf
https://www.avient.com/sites/default/files/2021-11/avient-design-ergonomic-design-guide.pdf
The material comparison test results are shown in Figure 23.
Figure 23: Ponderated acceleration gains This engineering simulation case study successfully demonstrated proof of concept for replacing traditional hammer shaft materials with the proposed polymer.
MATERIAL STRATEGIES Ergonomic Grip Design Guide 23 As we stated above, increasing the durability of a device can help extend its useful life and reduce waste.
https://www.avient.com/sites/default/files/2021-09/avnt-q2-2021-earnings-presentation.pdf
• ColorWorks innovation centers are specially designed to foster imagination and enable creative exploration of innovative solutions • Focus on customers’ sustainability initiatives through recyclability and post-consumer recycled materials for packaging applications • Supports 8-12% long-term revenue growth expectations across our sustainable solutions portfolio 8 2020 Pro forma $870 $69 Sustainable Solutions 66 37% 26 Healthcare 29 20% 7 Composites 12 36% 6 Growth in Asia / LATAM 47 39% 11 Other 190 48% 22 Sub-total $1,214 40% $141 COVID Response Applications (15) (8) FX Impact 36 4 Synergies 11 Incentives, Travel, Other Employee Costs (26) 2021 Actual $1,235 42% $122 Q2 2021 ORGANIC SALES AND OPERATING INCOME (TOTAL COMPANY) 9 (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition Sales Growth Rate Adjusted Operating Income$ millions (1) 10 Q2 2020PF Q2 2021 (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition (2) Financial information is presented on a constant currency basis (1,2) (44% of total revenue) (56% of total revenue) Q2 END MARKET SALES PERFORMANCE +26% +38% +46% +103% +51% +9% +7% +67% Energy Telecom Building & Construction Transportation Industrial Healthcare Packaging Consumer Q2 YEAR-OVER-YEAR EBITDA BRIDGE Q2 2020 Pro forma $ 106 Demand 69 11 Adjusted EBITDA$ millions • Demand impact driven by growth in sustainable solutions and consumer products • Price increases more than offset raw material and supply chain impacts (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition (1) CAI: Price / Mix 40 Inflation (32) SEM: Price / Mix 23 Inflation (18) Distribution: Price / Mix 81 Inflation (77) Net Price Benefit 17 Supply Chain Disruptions (14) COVID Response Applications (8) Synergies 11 Incentives, Travel, FX, Other (22) Q2 2021 Actual $ 159 Q1 2021 Actual $ 161 CAI: Price / Mix 32 Inflation (22) SEM: Price / Mix 15 Inflation (9) Distribution: Price / Mix 50 Inflation (48) Net Price Benefit 18 Supply Chain Disruptions (12) Demand / Seasonality (6) Other (2) Q2 2021 Actual $ 15912 Adjusted EBITDA$ millions • Price increases more than offset raw material and freight inflation impacts • Demand impact driven by Q2 seasonality for the business Q1 TO Q2 SEQUENTIAL EBITDA BRIDGE Q 3 AN D FU LL Y EA R 2021 O U TLO O K $74 $98 2020 2021E $0.46 $0.68 2020 2021E ORGANIC GROWTH PROJECTIONS – Q3 (TOTAL COMPANY) 14 Sales Adjusted Operating Income $925 $1,150 2020 2021E + 24% Adjusted EPS + 32% + 48% (in millions) (in millions) FULL YEAR GUIDANCE INCREASED 15 Sales Adj.
Whether an additional line at an existing manufacturing plant, or a new facility in a growing region, we ramp-up quickly and cost-efficiently. 23 Capex / Revenue 2021E (%) AVIENT IS ASSET LIGHT Avient Specialty Formulators Other Chemical/Specialty Companies 2 2 2 2 3 3 3 4 3 4 4 5 5 5 5 5 6 7 27 A vi e nt A vi e nt ( E xc l.
APPENDIX Performance Additives 15% Pigments 15% TiO2 12% Dyestuffs 4%Polyethylene 10% Nylon 5% Polypropylene 4% Other Raw Materials 29% Styrenic Block Copolymer 6% ~1/3 hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials 28 • In Q2 2021, several raw material markets experienced significant price inflation and tight inventory o Average cost of hydrocarbon based materials was up 45% year-over-year and 20% sequentially o Average cost of non-hydrocarbon based materials was up 10% year-over-year and 8% sequentially • Additionally, we experienced other supply chain challenges during Q2 related to raw material spot purchases, freight constraints and productivity loss as a result of these shortages Annual Purchases RAW MATERIAL AND SUPPLY CHAIN UPDATE Based on 2020 pro forma purchases, excludes Distribution business SEGMENT DATA U.S. & Canada 50% EMEA 26% Asia 16% Latin America 8% 2021 YTD SEGMENT, END MARKET AND GEOGRAPHY 30 GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 23% Packaging 20% Industrial 16% Building and Construction 9% Telecommunications 4% Energy 2% END MARKET REVENUE (1) Total company sales and EBITDA of $2,398M and $320M, respectively, include intercompany sales eliminations and corporate costs All charts reflect YTD financials through June 30 $1,234M $228M $457M $87M $767M $48M Sales EBITDA Distribution Specialty Engineered Materials Color Additives and Inks $320M$2,398M (1) Transportation 12% Healthcare 14% Packaging 34% Consumer 21% Healthcare 7% Industrial 16% Building & Construction 10% Transportation 9% Energy 2% Telecommunications 1% C O L O R , A D D I T I V E S & I N K S 2021 YTD REVENUE | $1 .2 BILL ION US & Canada 31% EMEA 42% Asia 21% Latin America 6% END MARKET REGION 31 All charts reflect 2021 YTD financials through June 30 S P E C I A LT Y E N G I N E E R E D M AT E R I A L S Consumer 28% Healthcare 10% Packaging 6% Telecommunications 16% Industrial 12% Transportation 11% Building & Construction 10% Energy 7% 2021 YTD REVENUE | $457 MILLION END MARKET US & Canada 54% EMEA 26% Asia 20% REGION 32 All charts reflect 2021 YTD financials through June 30 DI S TR IBU T I ON Healthcare 27% Consumer 22% Packaging 5% Industrial 20% Transportation 16% Building and Construction 8% Energy 1% Telecommunications 1% US & Canada 81% Asia 4% Latin America 15% END MARKET REGION K E Y S U P P L I ER S 2021 YTD REVENUE | $767 MILLION 33 All charts reflect 2021 YTD financials through June 30 TOTA L C O M PA N Y R E G I O N A L S A L E S BY END MARKET Packaging 30% Consumer 27%Healthcare 11% Industrial 15% Building & Construction 5% Telecommunications 2% Energy 2% Asia (16% of sales) Transportation 8% Packaging 32% Consumer 13% Healthcare 5% Industrial 18% Building & Construction 11% Telecommunications 5% Energy 4% EMEA (26% of sales) Transportation 12% 34 Consumer 25% Healthcare 19% Packaging 11% Industrial 16% Building & Construction 10% Telecommunications 4% Energy 2% US & Canada (50% of sales) Transportation 13% Packaging 40% Consumer 33% Healthcare 4% Industrial 10% Building & Construction 5% Telecommunications 1% LATAM (8% of sales) Transportation 7% All charts reflect 2021 YTD financials through June 30 Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Three Months Ended June 30, 2021 Reconciliation to Condensed Consolidated Statements of Income GAAP Results Special Items Adjusted Results Operating income $ 108.1 $ 14.2 $ 122.3 Income from continuing operations before income taxes $ 89.8 $ 14.2 $ 104.0 Income tax expense - GAAP (20.4) — (20.4) Income tax impact of special items — (3.4) (3.4) Tax adjustments — 0.9 0.9 Net income attributable to noncontrolling interests (0.6) — (0.6) Net income from continuing operations attributable to Avient shareholders $ 68.8 $ 11.7 $ 80.5 Net income / EPS $ 0.74 $ 0.13 $ 0.87 Weighted-average diluted shares 92.4 92.4 92.4 Three Months Ended September 30, 2020 Reconciliation to Condensed Consolidated Statements of Income GAAP Results Special Items Adjusted Results Operating income $ 33.5 $ 40.4 $ 73.9 Income from continuing operations before income taxes $ 5.3 $ 50.0 $ 55.3 Income tax expense - GAAP (2.7) — (2.7) Income tax impact of special items — (12.7) (12.7) Tax adjustments — 3.0 3.0 Net income attributable to noncontrolling interests (0.9) — (0.9) Net income from continuing operations attributable to Avient shareholders $ 1.7 $ 40.3 $ 42.0 Net income / EPS $ 0.02 $ 0.44 $ 0.46 Weighted-average diluted shares 91.9 91.9 91.9 Three Months Ended Year Ended December 31, Reconciliation to Pro Forma Adjusted EBITDA June 30, 2021 March 31, 2021 June 30, 2020 2020 2019 Net income from continuing operations – GAAP $ 69.4 $ 79.7 $ 23.4 $ 133.8 $ 75.7 Income tax expense 20.4 22.9 7.9 5.2 33.7 Interest expense 19.5 19.3 16.2 74.6 59.5 Depreciation and amortization from continuing operations 33.8 37.1 20.9 115.0 78.1 EBITDA $ 143.1 $ 159.0 $ 68.4 $ 328.6 $ 247.0 Special items, before tax 14.2 2.4 2.4 66.2 61.7 Interest expense included in special items — — (0.5) (10.1) — Depreciation and amortization included in special items 1.4 (0.5) (1.2) (3.2) — Adjusted EBITDA $ 158.7 $ 160.9 $ 69.1 $ 381.6 $ 308.7 Clariant MB pro forma adjustments(1) — — 37.0 75.1 133.2 Pro forma adjusted EBITDA $ 158.7 $ 160.9 $ 106.1 $ 456.7 $ 441.9 (1) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition 1 Reconciliation of EBITDA by Segment Three Months Ended June 30, Six Months Ended June 30, Year Ended December 31, 2021 2020 2021 2020 2019 2018 Sales: Color, Additives and Inks $ 624.4 $ 226.8 $ 1,233.7 $ 483.3 $ 1,502.9 $ 1,003.8 Specialty Engineered Materials 240.6 158.8 457.1 344.1 708.8 745.7 Distribution 404.4 238.8 767.1 528.3 1,110.3 1,192.2 Corporate and eliminations (34.2) (15.3) (60.4) (35.1) (79.9) (79.0) Sales $ 1,235.2 $ 609.1 $ 2,397.5 $ 1,320.6 $ 3,242.1 $ 2,862.7 Operating income: Color, Additives and Inks $ 86.3 $ 32.3 $ 175.1 $ 180.8 $ 147.4 $ 158.5 Specialty Engineered Materials 37.3 17.0 71.5 94.4 83.7 72.3 Distribution 23.7 14.6 47.7 69.5 75.4 71.5 Corporate and eliminations (39.2) (25.9) (65.8) (155.4) (149.7) (123.7) Operating income $ 108.1 $ 38.0 $ 228.5 $ 189.3 $ 156.8 $ 178.6 Items below OI in Corporate: Other income, net $ 1.2 $ 9.5 $ 2.7 $ 24.3 $ 12.1 $ (12.9) Depreciation & amortization: Color, Additives and Inks $ 25.3 $ 10.6 $ 52.6 $ 75.1 $ 42.7 $ 44.3 Specialty Engineered Materials 8.1 7.6 15.9 30.0 29.5 23.2 Distribution 0.2 0.1 0.4 0.7 0.5 0.7 Corporate and eliminations 0.2 2.6 2.0 9.2 5.4 4.4 Depreciation & Amortization $ 33.8 $ 20.9 $ 70.9 $ 115.0 $ 78.1 $ 72.6 EBITDA: Color, Additives and Inks $ 111.6 $ 42.9 $ 227.7 $ 255.9 $ 190.1 $ 202.8 Specialty Engineered Materials 45.4 24.6 87.4 124.4 113.2 95.5 Distribution 23.9 14.7 48.1 70.2 75.9 72.2 Corporate and eliminations (39.0) (23.3) (63.8) (146.2) (144.3) (119.3) EBITDA $ 143.1 $ 68.4 $ 302.1 $ 328.6 $ 247.0 $ 238.3 EBITDA as a % of Sales: Color, Additives and Inks 17.9 % 18.9 % 18.5 % 17.0 % 18.9 % 19.4 % Specialty Engineered Materials 18.9 % 15.5 % 19.1 % 17.6 % 15.2 % 14.8 % Distribution 5.9 % 6.2 % 6.3 % 6.3 % 6.4 % 5.7 % 2 Reconciliation of Pro Forma EBITDA - Color, Additives and Inks Three Months Ended June 30, Six Months Ended June 30, Year Ended December 31, 2021 2020 2021 2020 2019 2018 Sales: Color, Additives and Inks $ 624.4 $ 226.8 $ 1,233.7 $ 1,502.9 $ 1,003.8 $ 1,046.5 Clariant MB pro forma adjustments(1) — 261.1 — 540.4 1,118.6 1,209.8 Pro forma sales $ 624.4 $ 487.9 $ 1,233.7 $ 2,043.3 $ 2,122.4 $ 2,256.3 Operating income: Color, Additives and Inks $ 86.3 $ 32.3 $ 175.1 $ 180.8 $ 147.4 $ 158.5 Clariant MB pro forma adjustments(1) — 22.0 — 45.0 72.9 80.3 Pro forma operating income $ 86.3 $ 54.3 $ 175.1 $ 225.8 $ 220.3 $ 238.8 Depreciation & amortization: Color, Additives and Inks $ 25.3 $ 10.6 $ 52.6 $ 75.1 $ 42.7 $ 44.3 Clariant MB pro forma adjustments(1) — 15.0 — 30.1 60.3 61.2 Pro forma depreciation & amortization $ 25.3 $ 25.6 $ 52.6 $ 105.2 $ 103.0 $ 105.5 EBITDA Color, Additives and Inks $ 111.6 $ 42.9 $ 227.7 $ 255.9 $ 190.1 $ 202.8 Clariant MB pro forma adjustments(1) — 37.0 — 75.1 133.2 141.5 Pro forma EBITDA $ 111.6 $ 79.9 $ 227.7 $ 331.0 $ 323.3 $ 344.3 Pro forma EBITDA as a % of Sales 17.9 % 16.4 % 18.5 % 16.2 % 15.2 % 15.3 % (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition Three Months Ended June 30, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient Sales $ 609.1 $ — $ 609.1 $ 261.1 $ 870.2 Operating income $ 38.0 $ 9.0 $ 47.0 $ 22.0 $ 69.0 Interest expense, net (16.2) — (16.2) (5.3) (21.5) Other income, net 9.5 (6.6) 2.9 — 2.9 Income taxes (7.9) 0.2 (7.7) (3.8) (11.5) Net income attributable to noncontrolling interests (0.4) — (0.4) — (0.4) Net income from continuing operations attributable to Avient shareholders $ 23.0 $ 2.6 $ 25.6 $ 12.9 $ 38.5 Weighted average diluted shares 91.8 Pro forma adjusted EPS $ 0.42 (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 3 Year Ended December 31, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient Sales $ 3,242.1 $ — $ 3,242.1 $ 540.4 $ 3,782.5 Operating income $ 189.3 $ 73.7 $ 263.0 $ 45.0 $ 308.0 Interest expense, net (74.6) 10.1 (64.5) (18.1) (82.6) Other income, net 24.3 (17.6) 6.7 — 6.7 Income taxes (5.2) (41.4) (46.6) (6.2) (52.8) Net income attributable to noncontrolling interests (1.8) — (1.8) — (1.8) Net income from continuing operations attributable to Avient shareholders $ 132.0 $ 24.8 $ 156.8 $ 20.7 $ 177.5 Weighted average diluted shares 90.6 Impact to diluted shares from January 2020 equity offering 1.5 Pro forma weighted average diluted shares 92.1 Pro forma adjusted EPS $ 1.93 (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition Year Ended December 31, 2019 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient Sales $ 2,862.7 $ — $ 2,862.7 $ 1,118.6 $ 3,981.3 Operating income $ 156.8 $ 71.7 $ 228.5 $ 72.9 $ 301.4 Interest expense, net (59.5) — (59.5) (33.4) (92.9) Other income, net 12.1 (10.0) 2.1 — 2.1 Income taxes (33.7) (5.9) (39.6) (9.1) (48.7) Net income attributable to noncontrolling interests (0.2) — (0.2) — (0.2) Net income from continuing operations attributable to Avient shareholders $ 75.5 $ 55.8 $ 131.3 $ 30.4 $ 161.7 Weighted average diluted shares 77.7 Impact to diluted shares from January 2020 equity offering 15.3 Pro forma weighted average diluted shares 93.0 Pro forma adjusted EPS $ 1.74 (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 4 AVNT Q2 2021 Earnings Presentation - Website NEW.pdf AVNT Q2 2021 Earnings Presentation - Website.pdf Final - 7.19 1158am Q2 21 IR Deck Version v2
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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 Addressable market exceeds $40 billion PolyOne Corporation Page 17 Appendix PolyOne Corporation Page 18 +25% $262 $320 $200 $275 $350 2013 2014 Adjusted Operating Income (in millions) +22% 2014 Financial Highlights All of our segments delivered both operating income and margin expansion during the year Our specialty businesses achieved record levels of profits and profitability this year Achieved 21st consecutive quarter, or over five years, of strong, double-digit adjusted EPS growth +37% $1.31 $1.80 $1.00 $1.50 $2.00 2013 2014 Adjusted EPS $195 $242 $150 $200 $250 2013 2014 Specialty Operating Income (in millions) PolyOne Corporation Page 19 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% 12-16% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 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% Target United States 44% Europe 36% Canada 2% Asia 12% Latin America 6% PolyOne Corporation Page 20 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% 12-16% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Operating Income % of Sales Target 12.1% United States 44% Europe 33% Canada 2% Asia 19% Latin America 2% PolyOne Corporation Page 21 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% 8-10% 2012 2013 2014 2015 Operating Income % of Sales Target PolyOne Corporation Page 22 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% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Operating Income % of Sales At a Glance Performance Products and Solutions Solutions Expanding Profits 2014 Revenues: $0.8 Billion 9-12% Target 2014 Revenue by Industry Segment 2015 7.7% United States 80% Canada 14% Asia 2% Latin America 4% PolyOne Corporation Page 23 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 - 7.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Operating Income % of Sales 15% 52% 2006 2014 At a Glance Distribution *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period Key Suppliers 2014 Revenues: $1.1 Billion ROIC* Expanding Profits 6.1% Target http://www.polyone.com/Pages/VariationRoot.aspx PolyOne Corporation Page 24 2 lbs Plastic = 3 lbs aluminum or 8 lbs steel or 27 lbs glass 33% less material by weight than aluminum 75% less material by weight than steel 93% less material by weight than glass Requires 91% less energy to recycle a pound of plastic versus a pound of paper Source: SPI: Sustainability and the Plastics Industry Plastics: Key to Future Sustainable Development PolyOne Corporation Page 25 Commitment to Operational Excellence 81% 93% 2006 2014 16.2% 9.9% 2006 2014 On-Time Delivery Working Capital % of Sales 5% 43% 2006 2014 Percent of Associates Trained in LSS Four consecutive years – CFO Magazine Best Working Capital Management in the chemical industry World’s Best Business Process Excellence Program in 2012* 103 trained Black Belts 247 trained Green Belts 127 trained Kaizen Leaders World’s Best Start-up Program for Lean Six Sigma Deployment in 2009* *Both awards received from International Quality and Productivity Center PolyOne Corporation Page 26 Prototype Frame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 4 11 5 10 6 9 3 4 2 15 9 1 10 4 Breakthrough Platform Derivative A Rich Pipeline of Opportunity Number of Projects 25 14 19 17 18 93 Addressable Market ($ millions) TBD TBD $800 $450 $450 $1,700 PolyOne Corporation Page 27 Application Examples PolyOne Corporation Page 28 $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 Fast 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 4% 4% 8% 9% 9% 10% 11% 14% Western Europe North America South America MEA Easter Europe Asia Pacific China India PET 2008-13P CAGR PET Bottling Technology PolyOne Corporation Page 29 • 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 30 • Color harmonization across 15 unique color-and-polymer combinations • Eliminated need for multiple pre- colored materials • Reduced Land Rover’s working capital Range Rover Evoque Interior PolyOne Corporation Page 31 • Reduced health and environmental impact • System cost reduction • Radiation-shielding performance • Parts consolidation • Design freedom CT Scanner PolyOne Corporation Page 32 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 33 Next Generation Solar Charger • Ginkgo Solar Tree charger utilizing our unique reSound™ material • reSound™ is a durable material consisting of 50% bio-derived plastic and 50% traditional petroleum-based plastic • Use of reSound™ reduced the carbon footprint for this product by 35% • reSound™ Is classified as a PolyOne Sustainable SolutionSM PolyOne Sustainable SolutionSM PolyOne Corporation Page 34 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 organoleptic properties PolyOne Corporation Page 35 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 Schedule I 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.