https://www.avient.com/investor-center/news/avient-announces-second-quarter-2024-results
Color, Additives and Inks
Color, Additives and Inks
Color, Additives and Inks
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Seaport%2520Global%2520Transports%2520%2526%2520Industrials%2520Confer....pdf
V I S I O N PolyOne Corporation 4 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 IntegrityRespect Specialization Commercial Excellence Operational Excellence Globalization Collaboration ExcellenceInnovation To be the world’s premier provider of specialized polymer materials, services and solutions PolyOne Corporation 5 P O L Y O N E 2 0 1 7 R E V E N U E | $ 3 . 2 B I L L I O N Transportation 18% Industrial 16% Consumer 12% Packaging 11% Healthcare 11% Wire & Cable 9% Appliance 5% United States 59% Europe 14% Asia 10% Latin America 9% Canada 8% PolyOne Distribution 34% Performance Products & Solutions 21% Specialty Engineered Materials 19% Color Additives & Inks 26% Segment End Market Geography Building & Construction 12% Electrical & Electronics 6% 2009 2010 2011 2012 2013 2014 2015 2016* 2017* A D J U S T E D E P S E X P A N S I O N C O N S E C U T I V E Y E A R S PolyOne Corporation 6 8 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.06 $2.21 *Pro Forma for sale of DSS E A R L Y Y E A R S D E F I N E D B Y S P E C I A L T Y M I X I M P R O V E M E N T PolyOne Corporation 7 2% 76% 2005 2017 $5M $280M + 25% + 33% Specialty OI % of Operating Income Consistently Deliver Double Digit Annual EPS Growth *ROIC is defined as TTM adjusted OI after tax divided by the sum of average debt and equity less cash over a 5 quarter period PolyOne Corporation 8 2006 2017 2020 “Where we were” “Where we are” Platinum Vision ROIC* 5.0% 14.0% 15.0% Operating Income % of Sales Color, Additives & Inks 1.7% 15.5% 20%+ Specialty Engineered Materials 1.1% 12.5% 20%+ Performance Products & Solutions 5.5% 10.7% 12-14% Distribution 2.6% 6.3% 6.5-7.5% P R O O F O F P E R F O R M A N C E & P L A T I N U M V I S I O N 531 660130 149 504 607 2014 2017 R&D / Technical Marketing Sales I N V E S T M E N T I N COMMERCIAL RESOURCES D R I V I N G G R O W T H PolyOne Corporation 9 Increased commercial headcount Largest organic revenue growth since recession $2.9 $2.9 $3.2 2015 2016 2017 Revenue in billions of $ + 24% + 15% + 20% Total + 10% Organic + 7% Free Cash Flow (In millions) ROIC* PolyOne Corporation 10 $50 $116 $143 $0 $40 $80 $120 $160 $200 2012 2014 2016 2018 10.8% 11.3% 12.9% 14.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 2012 2014 2016 2017 2020 Platinum Vision $200 - $220 F R E E C A S H F L O W A N D I M P R O V I N G R E T U R N S *ROIC is defined as TTM adjusted OI after tax divided by the sum of average debt and equity less cash over a 5 quarter period 15.0% $767M R E T U R N I N G C A S H T O S H A R E H O L D E R S O V E R $ 9 5 0 M I L L I O N S I N C E 2 0 1 1 PolyOne Corporation 11 $0 $150 $300 $450 $600 $750 2011 2012 2013 2014 2015 2016 2017 $0.16 $0.20 $0.24 $0.32 $0.40 $0.48 $0.58 $0.70 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 3-Year Dividend Plan Cumulative Share Repurchases (In millions) Increasing Annual Dividend Transformational Opportunity for Growth Through M&A Adjacent Opportunity for Growth Through New Product Pipeline Core Customization 3 H O R I Z O N S O F D E V E L O P M E N T PolyOne Corporation 12 Incremental development from existing base of technology New development adjacent to current technology New technology development outside of and with our current base Service adjacent markets and customers Create new markets, target new customer needs Service existing markets and customers Market Technical I N N O V A T I O N Non-Halogen Flame Retardants Barrier Technologies Fiber Colorants Advanced Composites Thermoplastic Elastomers Gordon Composites/ Polystrand – Composites GLS – Thermoplastic Elastomers ColorMatrix – Liquid Color & Additives I N N O V A T I O N P I P E L I N E PolyOne Corporation 13 PrototypeFrame Opportunity Scale-up & Test Market Build Business Case Commercial Launch (since 2015) Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 8 6 8 2 2 36 5 10 13 10 4 6 7 Breakthrough Platform Derivative Number of Projects 33 17 20 15 5 90 Total Addressable Market ($ millions) - - $800 $1,400 $600 $2,800 F L A M E R E T A R D A N T P O L Y M E R S A D V A N C E D C O M P O S I T E S B A R R I E R M A T E R I A L S C O L O R A N T T E C H N O L O G I E S T H E R M O P L A S T I C E L A S T O M E R S 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 14 Launched in 2014, IQ Design Labs is our in-house industrial design team that focuses on material selection and processing expertise to help with problem solving, enabling our clients to develop higher performance products.
PolyOne investor presentation Forward Looking Statements USE OF �NON-GAAP�MEASURES Vision PolyOne�2017 Revenue | $3.2 billion Adjusted EPS Expansion Early years defined by Specialty �mix improvement Proof of Performance & Platinum Vision Investment in Commercial Resources driving growth Slide Number 10 Returning cash to shareholders�Over $950 million since 2011 3 Horizons of Development Innovation Pipeline IQ DESIGN LABS LSS CUSTOMER FIRST Why Invest In PolyOne?
Segment highlights COLOR, ADDITIVES & INKS Color, Additives & Inks Specialty Engineered Materials Specialty Engineered Materials Performance Products & Solutions Performance Products & Solutions DISTRIBUTION Target end markets & �application examples Slide Number 26 Slide Number 27 Slide Number 28 Slide Number 29 Slide Number 30 Slide Number 31 Slide Number 32 Slide Number 33 Slide Number 34 Slide Number 35 Slide Number 36 Slide Number 37 Investor Presentation - March 2018 r4.pdf Investor Presentation - March 2018
https://www.avient.com/sites/default/files/2021-04/avient-q4-earnings-and-2021-outlook-website.pdf
Purchase price multiple rapidly declining on strength of business and synergy capture (1) (1) (1) (1) (1) (1) (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition ($ in millions) 7 SEM CAI Avient • Composites and Outdoor High Performance applications drove positive mix within SEM • Clariant Masterbatch synergy realization under way and expected to drive further margin expansion in 2021 • Portfolio transformation to high growth end markets with focus on sustainable solutions megatrend 10.1% 11.8% 2019PF 2020 (1) (1) EBITDA MARGIN EXPANSION Distribution 6.3% 6.0% 15.2% 17.6% 11.1% 12.1% 2019PF 2020PF 14.5% 19.8% 13.5% 16.1% 6.4% 6.3% 15.2% 16.2% (1) (1) Full YearQ4 (2) (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition (2) Total company reflects adjusted EBITDA margins SPOTLIGHT: COMPOSITES 8 • SEM delivers a record year in 2020 – 13% operating income growth and over 200 bps in margin expansion year-over-year • Prior investments in composites platform and outdoor high performance applications paying off, resulting in substantial growth over the last two years SEM Operating Income (OI % of Sales) ($ in millions) $(0.1) $(1.0) $2.2 $19.1 $26.8 2016 2017 2018 2019 2020 Composites Performance (Operating Income) $83.7 $94.4 2019 2020 (11.2%) (13.3%) 0.1 0.1 0.2 0.5 0.6 0.7 0.8 0.9 0.9 1.0 11 12 13 14 15 16 17 18 19 20 $19 $160 $338 2011 2019 2020 0.16 0.20 0.26 0.34 0.42 0.50 0.58 0.72 0.79 0.81 0.85 11 12 13 14 15 16 17 18 19 20 21E FREE CASH FLOW AND CAPITAL ALLOCATION 9 Free Cash Flow Dividends Share Repurchases Deleveraging 3.5x 2.7x 2019PF 2020PF Growing Dividend Cumulative Buybacks Net Leverage $B n $ p e r sh ar e Cash Generation (1) (1) ~$1Bn REPURCHASED OVER LAST 10 YEARS ~$350MM PAID OVER LAST 10 YEARS ~$338MM 2.7x NET LEVERAGE (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition GREAT PLACE TO WORK!
A reconciliation of these measures to their most directly comparable GAAP measures is provided in the tables below. 1 Reconciliation of EBITDA by Segment Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 Sales: Color, Additives and Inks $ 525.8 $ 226.7 $ 1,502.9 $ 1,003.8 Specialty Engineered Materials 190.6 177.5 708.8 745.7 Distribution 305.1 272.4 1,110.3 1,192.2 Corporate and eliminations (24.5) (18.0) (79.9) (79.0) Sales $ 997.0 $ 658.6 $ 3,242.1 $ 2,862.7 Operating income: Color, Additives and Inks $ 57.5 $ 27.2 $ 180.8 $ 147.4 Specialty Engineered Materials 30.4 18.8 94.4 83.7 Distribution 18.0 17.0 69.5 75.4 Corporate and eliminations (40.9) (42.5) (155.4) (149.7) Operating Income $ 65.0 $ 20.5 $ 189.3 $ 156.8 Items Below Operating Income in Corporate: Other income, net $ 11.7 $ 10.7 $ 24.3 $ 12.1 Depreciation & amortization: Color, Additives and Inks $ 27.3 $ 10.7 $ 75.1 $ 42.7 Specialty Engineered Materials 7.4 7.0 30.0 29.5 Distribution 0.3 0.1 0.7 0.5 Corporate and eliminations 2.8 1.0 9.3 5.4 Depreciation & Amortization $ 37.8 $ 18.8 $ 115.1 $ 78.1 EBITDA: Color, Additives and Inks $ 84.8 $ 37.9 $ 255.9 $ 190.1 Specialty Engineered Materials 37.8 25.8 124.4 113.2 Distribution 18.3 17.1 70.2 75.9 Corporate and eliminations (26.4) (30.8) (121.8) (132.2) EBITDA $ 114.5 $ 50.0 $ 328.7 $ 247.0 EBITDA as a % of sales: Color, Additives and Inks 16.1 % 16.7 % 17.0 % 18.9 % Specialty Engineered Materials 19.8 % 14.5 % 17.6 % 15.2 % Distribution 6.0 % 6.3 % 6.3 % 6.4 % Corporate and eliminations nm nm nm nm Total Company 11.5 % 7.6 % 10.1 % 8.6 % nm - not meaningful 2 Three Months Ended December 31, Year Ended December 31, Reconciliation to Adjusted EBITDA: 2020 2019 2020 2019 Net income from continuing operations – GAAP $ 74.7 $ 6.4 $ 133.8 $ 75.7 Income tax expense (17.3) 12.9 5.2 33.7 Interest expense 19.3 11.9 74.6 59.5 Depreciation and amortization from continuing operations 37.8 18.8 115.1 78.1 EBITDA $ 114.5 $ 50.0 $ 328.7 $ 247.0 Special items, before tax 4.2 15.0 66.2 61.7 Interest expense included in special items — — (10.1) — Accelerated depreciation included in special items (0.7) — (3.2) — Adjusted EBITDA $ 118.0 $ 65.0 $ 381.6 $ 308.7 Three Months Ended December 31, 2020 Reconciliation of Adjusted Earnings per Share: Avient Special Items Adjusted Avient Sales $ 997.0 $ — $ 997.0 Operating income $ 65.0 $ 14.6 $ 79.6 Interest expense, net (19.3) — (19.3) Other income, net 11.7 (10.4) 1.3 Income taxes 17.3 (30.9) (13.6) Net income from continuing operations attributable to Avient shareholders $ 74.2 $ (26.7) $ 47.5 Weighted average diluted shares 92.1 Adjusted EPS - excluding special items $ 0.52 Reconciliation of Adjusted EBITDA from continuing operations: Operating income and other income, net $ 76.7 $ 4.2 $ 80.9 Depreciation and amortization 37.8 (0.7) 37.1 EBITDA from continuing operations $ 114.5 $ 3.5 $ 118.0 EBITDA as a % of sales 11.8 % 3 Three Months 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 $ 658.6 $ — $ 658.6 $ 263.5 $ 922.1 Operating income $ 20.5 $ 24.6 $ 45.1 $ 13.2 $ 58.3 Interest expense, net (11.9) — (11.9) (11.1) (23.0) Other income, net 10.7 (9.6) 1.1 — 1.1 Income taxes (12.9) 4.9 (8.0) (0.5) (8.5) Net income from continuing operations attributable to Avient shareholders $ 6.4 $ 19.9 $ 26.3 $ 1.6 $ 27.9 Weighted average diluted shares 77.5 Impact to diluted shares from January 2020 equity offering 15.3 Pro forma weighted average diluted shares 92.8 Pro forma adjusted EPS $ 0.30 Reconciliation of Pro Forma Adjusted EBITDA from continuing operations: Operating income and other income, net $ 31.2 $ 15.0 $ 46.2 $ 13.2 $ 59.4 Depreciation and amortization 18.8 — 18.8 15.1 33.9 EBITDA from continuing operations $ 50.0 $ 15.0 $ 65.0 $ 28.3 $ 93.3 EBITDA as a % of sales 10.1 % (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, 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 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 115.1 (3.2) 111.9 30.1 142.0 EBITDA from continuing operations $ 328.7 $ 52.9 $ 381.6 $ 75.1 $ 456.7 EBITDA as a % of sales 12.1 % (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 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 EBITDA as a % of sales 11.1 % (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 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 Pro forma weighted average diluted shares 92.8 Pro forma adjusted 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 5 Three Months Ended December 31, 2019 Year Ended December 31, 2019 Reconciliation of pro forma sales, operating income, and EBITDA: CAI Clariant MB Pro Forma Adjustments(1) Pro Forma CAI CAI Clariant MB Pro Forma Adjustments(1) Pro Forma CAI Sales $ 226.7 $ 263.5 $ 490.2 $ 1,003.8 $ 1,118.6 $ 2,122.4 Operating income $ 27.2 $ 13.2 $ 40.4 $ 147.4 $ 72.9 $ 220.3 EBITDA $ 37.9 $ 28.3 $ 66.2 $ 190.1 $ 133.2 $ 323.3 EBITDA as a % of sales 13.5 % 15.2 % (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, 2020 Reconciliation of pro forma sales, operating income, and EBITDA: CAI Clariant MB Pro Forma Adjustments(1) Pro Forma CAI Sales $ 1,502.9 $ 540.4 $ 2,043.3 Operating income $ 180.8 $ 45.0 $ 225.8 EBITDA $ 255.9 $ 75.1 $ 331.0 EBITDA as a % of sales 16.2 % (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 Free cash flow, defined as cash provided by operating activities excluding items associated with acquisitions and divestitures, less capital expenditures, is considered a non-GAAP financial measure.
https://www.avient.com/news/polyone-acquires-magenta-master-fibers
Global Color, Additives and Inks segment, which last month unveiled its revolutionary new ColorMatrix™ Fiber Colorant Solutions that provide late-stage color injection in fiber applications utilizing liquid solutions.
president, Global Color, Additives and Inks,
https://www.avient.com/sites/default/files/2025-07/Avient Announces Second Quarter 2025 Results.pdf
Our customer focus and strong operational performance ultimately helped us deliver adjusted EPS slightly ahead of our guidance, in spite of the uncertain macro-economic backdrop in several of our key markets.” 2 "Demand conditions were mixed across the end markets we serve, which continue to be impacted by uncertainty related to the evolving trade policy and inflation.
Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Sales: Color, Additives and Inks $ 538.6 $ 542.0 $ 1,058.3 $ 1,057.3 Specialty Engineered Materials 329.7 308.1 638.1 622.5 Corporate (1.8) (0.4) (3.3) (1.1) Sales $ 866.5 $ 849.7 $ 1,693.1 $ 1,678.7 Gross margin: Color, Additives and Inks $ 188.0 $ 184.5 $ 361.1 $ 355.7 Specialty Engineered Materials 93.8 94.7 191.6 201.7 Corporate (3.9) (21.6) (11.6) (21.6) Gross margin $ 277.9 $ 257.6 $ 541.1 $ 535.8 Selling and administrative expense: Color, Additives and Inks $ 97.7 $ 98.4 $ 192.2 $ 194.8 Specialty Engineered Materials 53.6 51.9 104.3 105.5 Corporate 30.5 34.8 147.8 69.0 Selling and administrative expense $ 181.8 $ 185.1 $ 444.3 $ 369.3 Operating income: Color, Additives and Inks $ 90.3 $ 86.1 $ 168.9 $ 160.9 Specialty Engineered Materials 40.2 42.8 87.3 96.2 Corporate (34.4) (56.4) (159.4) (90.6) Operating income $ 96.1 $ 72.5 $ 96.8 $ 166.5 Depreciation & amortization: Color, Additives and Inks $ 22.4 $ 21.8 $ 44.1 $ 43.7 Specialty Engineered Materials 22.4 20.8 43.9 40.4 Corporate 1.8 2.3 3.9 5.1 Depreciation & amortization $ 46.6 $ 44.9 $ 91.9 $ 89.2 Earnings before interest, taxes, depreciation and amortization (EBITDA): Color, Additives and Inks $ 112.7 $ 107.9 $ 213.0 $ 204.6 Specialty Engineered Materials 62.6 63.6 131.2 136.6 Corporate (32.6) (54.1) (155.5) (85.5) Other expense, net (0.5) (0.9) (0.9) (1.8) EBITDA $ 142.2 $ 116.5 $ 187.8 $ 253.9 Special items, before tax 7.3 28.1 108.5 34.3 Interest expense included in special items (0.3) (1.0) (2.0) (1.0) Depreciation & amortization included in special items (0.3) (0.3) (0.7) (0.8) Adjusted EBITDA $ 148.9 $ 143.3 $ 293.6 $ 286.4 12 Attachment 7 Avient Corporation Reconciliation of Non-GAAP Financial Measures (Unaudited) (In millions, except per share data) Senior management uses operating income before special items to assess performance and allocate resources because senior management believes that this measure is most useful in understanding current profitability levels and how it may serve as a basis for future performance.
https://www.avient.com/investor-center/news/avient-announces-fourth-quarter-and-full-year-2024-results
Color, Additives and Inks
Color, Additives and Inks
Color, Additives and Inks
https://www.avient.com/news/polyone-oncolor-naturals-launched-pcd-paris
Mineral and botanical pigments can be mixed together to adjust color tones, with plant-based pigments enabling vivid color and mineral pigments helping achieve calm and earthy tones.
https://www.avient.com/news/polyone-hires-cathy-k-dodd-vice-president-marketing
Dodd will be responsible for developing and executing PolyOne’s marketing strategy and leading all corporate marketing functions to achieve the company’s objectives of profitable sales growth, innovation, specialty mix improvement and value creation.
https://www.avient.com/news/avient-announces-new-cesa-unify-a4r-polyolefin-compatibilizer-fakuma-2023
When added to the recycled mixed polymers, Cesa Unify A4R addresses the common material degradation that occurs during the recycling process.
https://www.avient.com/news/polyone-announces-launch-innovative-specialty-technology-serve-healthcare-industry
Our healthcare solutions portfolio continues to grow, as does our mix in this important industry, where last year company revenues from healthcare reached $413 million, as compared to $103 million in 2006.”