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POLYONE
I N V E S T O R
P R E S E N T A T I O N
J U N E 2 0 1 8
FORWARD LOOKING STATEMENTS
PolyOne Corporation 2
In this presentation, statements that are not reported financial results or other historical information are “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of 1995.
Leverage
PolyOne’s
global reach
Phase 1 Phase 2
Phase 3
18-20%
operating
margins
Invest in
commercial
resources
I N V E S T - T O - G R O W P R O O F O F P E R F O R M A N C E
PolyOne Corporation 23
Commercial
Resources
Operating
Income
($ in millions)
Operating
Margins
243
335
$36
$90
20%
Established Acquisitions
(> 7 years)
+ 40% + 150% + 900 bps
I N V E S T - T O - G R O W D R I V I N G T H E F U T U R E
PolyOne Corporation 24
Commercial
Resources
Operating
Income
($ in millions)
Operating
Margins
113
144
206
$16 $18
$60
7% 8%
18-20%
Recent Acquisitions
(< 2 years)
PolyOne Corporation 25
Average
Company Size
# of
Possibilities
Rationale
250
• Local to regional footprint
• Niche technology focus
• Concentrated customer base
$50M–$200M 150
• Regional to global footprint
• 1–3 specialty technologies
• Diversified customer base
>$200M 30
• Global footprint with local service
• Diverse specialty technologies
• Highly diversified customer & market
portfolio
S T R O N G P I P E L I N E
D R I V E N B Y F R A G M E N T E D M A R K E T
$0
$150
$300
$450
$600
$750
2011 2012 2013 2014 2015 2016 2017 2018
$809M
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 $ 1 B I L L I O N S I N C E 2 0 1 1
PolyOne Corporation
$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
26
6.3%
15.0%
16-17%
2009 2017 Platinum Vision Updated Expectations
R O I C D R I V E S S H A R E H O L D E R R E T U R N
PolyOne Corporation 27
PolyOne Corporation 28
W H Y I N V E S T I N P O L Y O N E ?
Adjusted EPS attributable to PolyOne common shareholders is calculated as follows:
2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017
Net income from continuing operations attributable
to PolyOne common shareholders $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6 $ 166.4 $ 173.5
Joint venture equity earnings, after tax (19.0) (14.7) (3.7) — — — — — —
Special items, before tax(1) (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 23.8 32.9
Special items, tax adjustments(1) (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (15.9) (24.8)
Adjusted net income from continuing operations
attributable to PolyOne common shareholders $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 174.3 $ 181.6
Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1
Adjusted EPS attributable to PolyOne common
shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.06 $ 2.21
* Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principle, discontinued operations or the related resegmentation
https://www.avient.com/sites/default/files/2023-05/AVNT Q1 2023 Earnings Presentation.pdf
Pro Forma Financial Information
The Company acquired Avient Protective Materials (“Dyneema”) on September 1, 2022 (the “Acquisition Date”) and sold the Distribution segment on November 1, 2022.
To provide comparable results, the company references “pro forma” financial
metrics, which include the business results of Avient Protective Materials for periods prior to the Acquisition Date, as if the transaction occurred on January 1, 2021 and reflect Distribution as a discontinued operation.
GUIDANCE
7
14.8%
15.8%
Adjusted EBITDA Margin %
Better-than-expected margins
driven by:
• Resilient demand for
composites and sustainable
solutions which improved
mix of higher margin
applications
• Deceleration of raw material
inflation
• Cost reduction activities
Q1 EBITDA BRIDGE
8
$ millions
CAI:
Price / Mix 19)
Inflation (4)
SEM:
Price / Mix 6)
Inflation (4)
Net Price Benefit 17)
Wage and Energy Inflation (13)
Cost Reductions 8)
FX (6)
Q1 2023 Actual $134)
Adjusted
EBITDA
Q1 2022 Pro Forma $ 176)
Demand (48) • Weak demand
conditions in-line
with previous
expectations
• Pricing continues to
cover inflation of raw
materials, wages
and energy
U.S. & Canada
40%
38%
17%
Q1 2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
18%
23%
Building and
6%Telecommunications
END MARKET REVENUE
(1) Total company sales and adjusted EBITDA of $846M and $134M, respectively, include intercompany sales eliminations and corporate costs
$537M $91M
$310M $64M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$134M$846M
(1)
9
Q1 2023 SALES BY REGION
Yo Y C H A N G E ( E X C L .
https://www.avient.com/sites/default/files/resources/TRA%2520-%25202016%2520Annual%2520Report%2520for%252015%2520Tideman.pdf
lang=En&n=3C401D5C-1
http://www.ec.gc.ca/default.asp?
lang=En&n=BD3CE17D-1
http://www.ec.gc.ca/default.asp?
n=29E6BF9F-1&lang=en
http://www.ec.gc.ca/default.asp?
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Investor%2520Day%25205-18-15.pdf
PolyOne Corporation Page 4
Agenda
1:00 Introduction Robert M.
Patterson
1:30 Global Color, Additives and Inks John V.
1) Special items are a non-GAAP financial measure.
https://www.avient.com/sites/default/files/2024-01/308699_en_46089.pdf
View PDF
The SQS herewith attests that the organisation named below has a management system that meets the requirements of
the normative base mentioned.
70
01
_1
/A
pr
il
20
22
/V
er
si
on
2
.0
Certificate
Avient Colorants Germany GmbH
Hohenrhein 1
56112 Lahnstein
Germany
Scope
Production of Color Concentrates and Compounds
Normative base
ISO 50001:2018 Energy Management System
Reg. no. 46089
Page 1 of 1
Validity 17. 12. 2023 – 16. 12. 2026
Issue 17. 12. 2023
A.Grisard, President SQS F.
https://www.avient.com/sites/default/files/2024-12/GMP_Pune_Polyone Polymers -798019.pdf
LoC No: 798019/2023 Page 1 of 1
Letter of Conformity
Good Manufacturing Practices — Guidelines
The Letter of Conformity is granted to
Polyone Polymers India Private Limited
Plot No.
F -27, MIDC, Ranjangaon,
Taluka – Shirur, Pune
Maharashtra
412220
India
Hold this Opinion Statement No. 798019/2023
The Organization has demonstrated that they have followed the guidelines provided for Good Manufacturing
Practices as per the ICHQ7 guidelines in their organization for the following Business activity:
Research and Development, Manufacture of Color additives, Concentrates and Specialty Formulations
for intended use in pharma and other industries
Theuns Kotze, Managing Director – IMETA Assurance
Last Audit Date: 31.10.2023
BSI Group India Private Limited T: +91-4762-9000
(CIN U74899DL1999PTC101381 info.in@bsigroup.com
The Mira Corporate Suites bsigroup.com/en-IN
Plot 1&2, Ishwar Nagar,
Mathura Road New Delhi-110065, India
https://www.avient.com/sites/default/files/2024-12/Certificate ISO 22000_Tangerang.pdf
Kalisabi No. 1,
Kec.
Cibodas
15138 Kecamatan Cibodas, Tangerang
Indonesia
Scope
Category I
Production of customer specific Masterbatches for
Food packaging materials on the dedicated extrusion
lines
Normative base
ISO 22000:2018 Food Safety Management Systems - Requirements
for any organization in the food chain
Reg. no. 46391
Page 1 of 1
Validity 25. 02. 2024 – 24. 02. 2027
Issue 25. 02. 2024
A.Grisard, President SQS F.
https://www.avient.com/sites/default/files/2024-03/2024 Proxy Statement %28Filed%29.pdf
On December 1, 2023, Mr.
Kunkle
— 4,022(1) 321,750(1) 643,500(1) — — — — —
— 28,875(2) 231,000(2) 462,000(2) — — — — —
2/17/2023 — — — 7,083(3) 21,250(3) — 42.93 269,117
11/1/2023 — — — (4) (4) — 42.93 95,223
11/1/2023 — — — (4) (4) — 52.64 27,135
11/1/2023 — — — (4) (4) — 42.27 5,130
2/17/2023 — — — — — 6,300(6) — 270,459
11/1/2023 — — — — — (7) — 151,675
11/1/2023 — — — — — (7) — 69,605
11/1/2023 — — — — — (7) — 15,354
R.M.
Patterson was
our First PEO from January 1 - December 1.
https://www.avient.com/sites/default/files/resources/Proxy%2520Statement%2520for%2520Web%2520Hosting.pd_.pdf
Independent Registered Public Accountant Services and Related Fee Arrangements
Report of the Audit Committee
The Audit Committee of
the Board of Directors
Director Independence
Lead Director
Board Leadership Structure
Board’s Oversight of Risk
Code of Ethics, Code of Conduct and Corporate Governance Guidelines
Communication with Board
Board and Committees
Board Attendance
Board Committees
AAudit Committee – Primary Responsibilities and Requirements
MEETINGS IN 2018: 9
Compensation Committee – Primary Responsibilities and Requirements
MEETINGS IN 2018: 5
MEMBERS:
Nominating and Governance Committee – Primary Responsibilities and
Requirements
MEETINGS IN 2018: 4
Environmental, Health and Safety Committee – Primary Responsibilities and
Requirements
MEETINGS IN 2018: 3
Board Refreshment
0%
20%
40%
60%
80%
100%
5 or fewer 6 to 10 More than 10
Years of Service
NON-EMPLOYEE DIRECTOR COMPENSATION
2018 NON-EMPLOYEE DIRECTOR COMPENSATION
Role Annual Cash Retainers
2018 Director Compensation Table
Fees Earned or Paid in Cash
Stock Awards
Total
(1)
NON-EMPLOYEE DIRECTOR COMPENSATION
Fees Earned or Paid in Cash (column (a))
Stock Awards (column (b))
Option Awards Outstanding and Fully-Vested Deferred Shares
Number of Deferred Shares(1)
Beneficial Ownership of Our Common Shares
Owned(1)
Right to Acquire
Shares
Total Beneficial
Ownership
Name and Address
Shares
%
of Shares
Stock Ownership Guidelines for Non-Employee Directors
Section 16(a) Beneficial Ownership Reporting Compliance
Executive Summary
Name Title
How Pay is Tied to Company Performance.
Kunkle, Senior Vice President,
General Counsel and Secretary(1)
Bradley C.
Crist, Senior Vice President,
President of Color, Additives and Inks(1)
Non-Equity Incentive Plan Compensation (column (f))
2018 Annual Incentive Program
2016 – 2018 Cash-Settled
Performance Units ($)
All Other Compensation (column (g))
Company Contributions to Qualified Savings Plan.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520KeyBanc%2520Conference%2520-%2520September%252014%25202016.pdf
P l O I t P t tiPolyOne Investor Presentation
KeyBanc Capital Markets
Basic Materials & Packaging Conference
September 2016p
PolyOne Corporation Page 1
Forward-Looking Statements
In this presentation, statements that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995.
Adjusted EPS is calculated as follows:
Adjusted EPS 2006Y* 2007Y* 2008Y* 2009Y* 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y
Net income (loss) attributable to PolyOne common
shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6
Joint venture equity earnings, after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) — — — —
Special items, after tax(1) (51.2) 10.7 457.2 (75.9) (72.5) (72.8) 36.2 32.6 90.5 28.9
Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5
Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8 96.5 93.5 88.7
Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96
Adjusted EPS Q1 2009* Q2 2009* Q3 2009* Q4 2009* Q1 2010 Q2 2010 Q3 2010 Q4 2010
Net income attributable to PolyOne common shareholders $ 3.3 $ 1.3 $ 51.3 $ 50.8 $ 20.1 $ 44.7 $ 0.1 $ 87.6
Joint venture equity earnings, after tax (8.2) (5.8) (3.0) (2.0) (0.5) (4.5) (6.2) (3.5)
Special items, after tax(1) (10.2) 9.2 (36.9) (38.0) (3.8) (22.1) 25.4 (72.0)
Adjusted net (loss) income $ (15.1) $ 4.7 $ 11.4 $ 10.8 $ 15.8 $ 18.1 $ 19.3 $ 12.1
Diluted shares 92.2 93.5 93.9 94.4 95.3 96.3 96.3 97.4
Adjusted EPS $ (0.16) $ 0.05 $ 0.12 $ 0.11 $ 0.17 $ 0.19 $ 0.20 $ 0.12
Adjusted EPS Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
Net income attributable to PolyOne common shareholders $ 106.0 $ 23.1 $ 16.0 $ 8.3 $ 15.3 $ 18.4 $ 19.4 $ 0.2
Joint venture equity earnings, after tax (3.7) - - - - - - -
Special items, after tax(1) (81.3) 1.3 2.8 4.4 6.2 8.9 5.4 15.7
Adjusted net income $ 21.0 $ 24.4 $ 18.8 $ 12.7 $ 21.5 $ 27.3 $ 24.8 $ 15.9
Diluted shares 96.4 95.5 94.0 91.9 90.7 90.7 90.2 90.5
Adjusted EPS $ 0.22 $ 0.26 $ 0.20 $ 0.14 $ 0.24 $ 0.30 $ 0.28 $ 0.18
2
Adjusted EPS Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
Net income (loss) attributable to PolyOne common
shareholders $ 11.2 $ 38.6 $ 23.2 $ 21.0 $ 29.4 $ 30.9 $ 32.3 $ (14.6)
Special items, after tax(1) 17.7 (2.0) 12.3 4.6 12.5 17.4 13.1 47.5
Adjusted net income $ 28.9 $ 36.6 $ 35.5 $ 25.6 $ 41.9 $ 48.3 $ 45.4 $ 32.9
Diluted shares 92.8 99.1 98.1 97.2 95.7 94.3 93.1 91.3
Adjusted EPS $ 0.31 $ 0.37 $ 0.36 $ 0.26 $ 0.44 $ 0.51 $ 0.49 $ 0.36
Adjusted EPS Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Net income attributable to PolyOne common shareholders $ 30.2 $ 66.8 $ 44.5 $ 3.1 $ 39.1 $ 50.0
Special items, after tax(1) 11.4 (15.9) 3.0 30.4 9.1 3.2
Adjusted net income $ 41.6 $ 50.9 $ 47.5 $ 33.5 $ 48.2 $ 53.2
Diluted shares 90.1 89.8 88.4 86.6 85.5 84.7
Adjusted EPS $ 0.46 $ 0.57 $ 0.54 $ 0.39 $ 0.56 $ 0.63
Adjusted operating margin is calculated as follows:
Adjusted operating margin Q1 2009* Q2 2009* Q3 2009* Q4 2009* YTD 2009* Q1 2010 Q2 2010 Q3 2010 Q4 2010 YTD 2010
Operating Income $ 9.9 $ 17.1 $ 57.9 $ 52.2 $ 137.1 $ 32.3 $ 58.6 $ 42.0 $ 26.3 $ 159.2
Special items (1) (1.3) 4.6 (27.5) (24.5) (48.7) - (14.5) 5.5 4.2 (4.8)
Joint venture equity earnings (12.8) (9.0) (4.8) (3.1) (29.7) (0.8) (7.1) (9.7) (5.5) (23.1)
Adjusted operating (loss) income $ (4.2) $ 12.7 $ 25.6 $ 24.6 $ 58.7 $ 31.5 $ 37.0 $ 37.8 $ 25.0 $ 131.3
Sales $ 463.4 $ 496.5 $ 548.3 $ 552.5 $ 2,060.7 $ 604.0 $ 666.2 $ 650.7 $ 585.3 $ 2,506.2
Operating Margin (0.9)% 2.6% 4.7% 4.5% 2.8% 5.2% 5.6% 5.8% 4.3% 5.2%
Adjusted operating margin Q1 2011 Q2 2011 Q3 2011 Q4 2011 YTD 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 YTD 2012
Operating income (loss) $ 173.4 $ 42.4 $ 33.4 $ (46.2) $ 203.0 $ 37.4 $ 43.3 $ 43.5 $ 13.3 $ 137.5
Special items (1) (127.2) 2.7 4.9 72.9 (46.7) 8.5 11.8 8.3 25.3 53.9
Joint venture equity earnings (5.7) - - - (5.7) - - - - -
Adjusted operating income $ 40.5 $ 45.1 $ 38.3 $ 26.7 $ 150.6 $ 45.9 $ 55.1 $ 51.8 $ 38.6 $ 191.4
Sales $ 682.8 $ 723.4 $ 694.0 $ 609.2 $ 2,709.4 $ 745.5 $ 756.6 $ 707.7 $ 651.0 $ 2,860.8
Operating Margin 5.9% 6.2% 5.5% 4.4% 5.6% 6.2% 7.3% 7.3% 5.9% 6.7%
3
Adjusted operating margin Q1 2013 Q2 2013 Q3 2013 Q4 2013 YTD 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 YTD 2014
Operating income (loss) $ 40.5 $ 80.7 $ 61.6 $ 48.7 $ 231.5 $ 56.4 $ 49.4 $ 63.6 $ (14.3) $ 155.1
Special items (1) 16.6 (5.2) 10.8 7.8 30.0 22.9 39.8 22.0 80.2 164.9
Adjusted operating income $ 57.1 $ 75.5 $ 72.4 $ 56.5 $ 261.5 $ 79.3 $ 89.2 $ 85.6 $ 65.9 $ 320.0
Sales $ 801.1 $ 1,037.6 $ 1,008.9 $ 923.6 $ 3,771.2 $ 1,002.3 $ 1,005.5 $ 958.4 $ 869.3 $ 3,835.5
Operating Margin 7.1% 7.3% 7.2% 6.1% 6.9% 7.9% 8.9% 8.9% 7.6% 8.3%
Adjusted operating margin Q1 2015 Q2 2015 Q3 2015 Q4 2015 YTD 2015 Q1 2016 Q2 2016
Operating income $ 70.1 $ 80.3 $ 69.2 $ 31.3 $ 250.9 $ 71.3 $ 81.5
Special items (1) 9.3 11.9 18.7 31.4 71.3 13.8 10.4
Adjusted operating income $ 79.4 $ 92.2 $ 87.9 $ 62.7 $ 322.2 $ 85.1 $ 91.9
Sales $ 873.1 $ 887.1 $ 841.6 $ 775.8 $ 3,377.6 $ 847.0 $ 861.5
Operating Margin 9.1% 10.4% 10.4% 8.1% 9.5% 10.0% 10.7%
Adjusted gross margin is calculated as follows:
(In millions) Twelve Months Ended December 31, 2015
Gross margin - GAAP $ 681.5
Special items in gross margin(1) 39.7
Gross margin before special items $ 721.2
Specialty platform percentage of operating income is calculated as follows:
Platform operating income mix percentage 2006Y* Q2 2016
Color, Additives and Inks $ 8.9 $ 38.2
Specialty Engineered Materials 3.9 21.4
Designed Structures and Solutions — 1.0
Specialty Platform $ 12.8 $ 60.6
Performance Products and Solutions 64.2 21.3
Distribution 19.2 17.8
Joint ventures 102.9 —
Corporate and eliminations 34.5 (18.2)
Operating income GAAP $ 233.6 $ 81.5
Less: Corporate and eliminations (34.5) 18.2
Operating income excluding Corporate $ 199.1 $ 99.7
Specialty platform percentage of operating income excluding corporate 6% 61%
4
Adjusted EBITDA and net debt to adjusted EBITDA is calculated as follows:
(In millions)
Six Months Ended
June 30, 2015
Twelve Months Ended
December 31, 2015
Six Months Ended
June 30, 2016
Trailing Twelve Months
Ended June 30, 2016
Income from continuing operations, before income taxes $ 116.7 $ 167.7 $ 123.6 $ 174.6
Interest expense, net 32.3 64.1 29.2 61.0
Depreciation and amortization 50.1 104.3 52.4 106.6
Special items, impact on income (loss) from continuing operations before
income taxes(1) 21.2 87.6 24.5 90.9
Accelerated depreciation included in special items (0.3) (6.2) (3.2) (9.1)
Adjusted EBITDA(2) $ 220.0 $ 417.5 $ 226.5 $ 424.0
Short-term and current portion of long-term debt $ 18.4
Long-term debt 1,126.2
Total Debt 1,144.6
Less: Cash and cash equivalents (161.4)
Net Debt $ 983.2
Net Debt / TTM Adjusted EBITDA 2.3
* Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principal, discontinued operations or the related resegmentation
1) Special items are a non-GAAP financial measure and are used to determine adjusted earnings.