https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202018.pdf
Patterson Chairman, President and CEO INTRODUCTION B O B P A T T E R S O N PolyOne Corporation 7 PolyOne Corporation 8 H I S T O R I C P A S T I N S P I R E D F U T U R E S U S T A I N A B I L I T Y A T P O L Y O N E PolyOne Corporation 9 P E O P L E P R O D U C T S P L A N E T S A F E T Y F I R S T PolyOne Corporation 10 1.3 1.1 1.1 0.85 0.65 0.57 0.54 0.97 0.84 0.74 0.74 0.69 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Injuries per 100 Workers Spartech Acquisition T H E P O L Y O N E A C A D E M Y PolyOne Corporation 11 Leadership Program Participants 2012 2013 2014 2015 47 0 86 2016 2017 125 169 216 Campus Hires 2008 2011 2014 2017 0 25 90 47 S U S T A I N A B L Y I M P A C T I N G D I V E R S E E N D M A R K E T S PolyOne Corporation 12 With emphasis on: • Light-weighting • Reducing packaging materials • Improving recyclability • Reducing spread of infection • Facilitating alternative energy solutions Transportation 18% Industrial 16% Building & Construction 12% Consumer 12% Packaging 11% Healthcare 11% Wire & Cable 9% Electrical & Electronics 6% Appliance 5% P R O D U C T S A N D P O R T F O L I O O P T I M I Z A T I O N PolyOne Corporation 13 R E I N V E S T G R O WD I V E S T ( D S S ) OUR PLANET PolyOne Corporation 14 Energy Saving Projects 26 10% REDUCTION 47 11% REDUCTION Waste Reduction Projects 2,557 LSS Projects Executed 202 PolyOne LSS Blackbelts 2011 2014 2017 202 2008 147 67 0 0 2,557 2008 2017 S U S T A I N A B I L I T Y A T P O L Y O N E PolyOne Corporation 15 P E O P L E P R O D U C T S P L A N E T P E R F O R M A N C E 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 16 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 17 2% 65% 2005 2014 $5M $242M + 25% + 33% Specialty OI % of Operating Income C O M M O D I T Y P R U N I N G H E L D O R G A N I C S A L E S F L A T PolyOne Corporation 18 2010 2011 2012 2013 2014 Acquisitions Organic Revenue 531 680130 153 504 618 2014 Q1 2018 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 R E S U L T S PolyOne Corporation 19 Increased commercial headcount Largest organic revenue growth since recession $2.9 $2.9 $3.2 2015 2016 2017 Revenue in billions of $ + 28% + 18% + 23% Total + 10% Organic + 7% S U S T A I N A B L E P A T H T O D O U B L E - D I G I T E P S G R O W T H PolyOne Corporation 20 P E O P L E P R O D U C T S P L A N E T P E R F O R M A N C E Double digit annual EPS growth Expand specialty portfolio with strategic acquisitions Innovate and develop new technologies and services Repurchase 600K-1M shares annually Increase commercial resources 6-8% annually Double acquired company margins Enhance efficiencies through Lean Six Sigma and commercial excellence 5.0% 14.0% 15.0% 16-17% 2006 2017 Platinum Vision Updated Expectations R A I S I N G T H E B A R 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 21 COMMERCIAL EXCELLENCE PolyOne Corporation 22 M I C H A E L G A R R A T T C O M M E R C I A L R E S O U R C E S I N N O V A T I O NS E R V I C E S T R A T E G I C I N V E S T M E N T I N 3 K E Y A R E A S PolyOne Corporation 23 531 680130 153 504 618 2014 Q1 2018 R&D / Technical Marketing Sales K E Y C O M M E R C I A L I N V E S T M E N T S PolyOne Corporation 24 Increased commercial headcount + 28% + 18% + 23% Generating opportunities 35% more sales calls 25% more marketing campaigns 1,000 new customers, expanding customer base by 5% $1.0B increase in new opportunities Enhancing efficiency 8% reduction of average territory size, enabling greater customer focus 20% more prospecting calls N E W R E S O U R C E S F U E L I N G T H E F U T U R E PolyOne Corporation 25 P O L Y O N E S A L E S F U N N E L +34% 2014 $3.0 billion 2017 $4.0 billion A L I G N I N G W I T H T R E N D S F O R G R O W T H T R A N S P O R T A T I O N P A C K A G I N G H E A L T H C A R E C O N S U M E R PolyOne Corporation 26 Facilitate alternative energy solutions Light- weighting Reduce packaging materials Improve recyclability Reduce spread of infection I N N O V A T I O N PolyOne Corporation 27 3 Horizons of Development Customization 55% M&A 30% Innovation Pipeline 15% Transformational Opportunity for Growth Through M&A Adjacent Opportunity for Growth Through New Product Pipeline Core Business Focus Innovation comes from 3 H O R I Z O N S O F D E V E L O P M E N T PolyOne Corporation 28 Transformational Opportunity for Growth Through M&A Adjacent Opportunity for Growth Through New Product Pipeline Core Business Focus New development adjacent to our existing technology base New development beyond our current technology base Development within our current technology 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 Transformational Opportunity for Growth Through M&A Adjacent Opportunity for Growth Through New Product Pipeline Core Business Focus 3 H O R I Z O N S O F D E V E L O P M E N T PolyOne Corporation 29 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 Gordon/Polystrand – Composites GLS – Thermoplastic Elastomers ColorMatrix – Liquid Color & Additives New development adjacent to our existing technology base New development beyond our current technology base Development within our current technology base Transformational Opportunity for Growth Through M&A Adjacent Opportunity for Growth Through New Product Pipeline Core Business Focus 3 H O R I Z O N S O F D E V E L O P M E N T PolyOne Corporation 30 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 Retardant Polymers Barrier Technologies Fiber Colorants Advanced Composites Thermoplastic Elastomers New development adjacent to our existing technology base New development beyond our current technology base Development within our current technology base I N N O V A T I O N P I P E L I N E PolyOne Corporation 31 PrototypeFrame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 8 5 6 2 1 15 4 10 5 11 4 5 7 Breakthrough Platform Derivative Number of Projects 26 16 20 15 2 79 Color Technologies – – $335 $670 $410 19 $1,415 Barrier Additives – – $160 $255 – 8 $415 Flame Retardant Polymers – – $200 $50 – 14 $250 Thermoplastic Elastomers – – $410 $80 $30 17 $520 Advanced Composites – – $100 $40 – 8 $140 Specialty Vinyl Formulations – – $25 $75 – 13 $100 Total Addressable Market ($ millions) – – $1,230 $1,170 $440 $2,840 12% 38% 2006 2017 $20 $52 2006 2017 Research & Development Spend ($ millions) Vitality Index % of sales from products launched last 5 years I N N O V A T I O N D R I V E S E A R N I N G S G R O W T H PolyOne Corporation 32 A U N I Q U E C U S T O M E R E X P E R I E N C E Industrial Design IQ DESIGN LABS PolyOne Corporation 33 Material & Color Expertise Manufacturing Expertise 3 14 2014 2017 Industrial designers $0 $7M 2014 2017 $4M $40M 2014 2017 Opportunity funnel New business revenue 3 D P R I N T I N G B R I N G I N G N E W I D E A S T O L I F E PolyOne Corporation 34 Enables validation of fit and function Shortens design cycle and time to market Avoids tooling rework Drives innovation Delivers substantial customer value LSS CUSTOMER FIRST PolyOne Corporation 35 Customer Projects Enables sales growth by building more intimate customer relationships, giving us insight to customers’ needs, with a service that is not easily replicated 2014 2017 2 85 Lead Specialists T H E E V O L V I N G C U S T O M E R R E L A T I O N S H I P PolyOne Corporation 36 Expanded Path Traditional Path Strategic Accounts/ Field Sales Business Development Customer Service Web and Social Media Inside Sales PolyOne Corporation 37 Investments in digital and dedicated inside sales to improve customer experience 80% increase in leads (from 6,000 to 11,000) driven by website, phone, and online chat EXPANDED PATH A D D I N G C U S T O M E R T O U C H P O I N T S 4 21 2014 2017 Inside sellers $11M $88M 2014 2017 Inside sales/digital revenue C O M M E R C I A L R E S O U R C E S I N N O V A T I O N S E R V I C E I N S P I R E D F U T U R E 6-8% annual increase in commercial resources 4 focused end-markets aligned with global megatrends 5 strategic innovation platforms 30% increase in IQ Design projects 35% increase in revenue from inside sales/digital ≥35% vitality index PolyOne Corporation 38 I N N O V A T I N G W I T H P O L Y O N E PolyOne Corporation 39 SEGMENT REVIEWS POLYONE DISTRIBUTION PolyOne Corporation 40 S C O T T H O R N D I S T R I B U T I O N E N D M A R K E T S & S U P P L I E R S PolyOne Corporation 41 Transportation 23% Healthcare 22% Industrial 18% Consumer 15% Appliance 7% Electrical & Electronics 6% Building & Construction 4% Packaging 3% Wire & Cable 2% $20 $25 $63 $73 2.9% 4.0% 5.9% 6.3% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 15 25 35 45 55 65 75 2005 2009 2013 2017 Operating Income & Margin2017 Revenue | $1.2 Billion http://www.polyone.com/Pages/VariationRoot.aspx http://www.polyone.com/Pages/VariationRoot.aspx S E R V I C E I S O U R B U S I N E S S PolyOne Corporation 42 Uniquely positioned to help our customers grow their brand and value-added solutions 1.2B $ Annual Sales 250 Global Employees 24 Strategic Presence 132 Sales Reps Warehouse Locations 6 Service Centers Dedicated Commercial Team S E R V I C E I S O U R B U S I N E S S S A F E L Y A N D R E S P O N S I B L Y PolyOne Corporation 43 95% on-time delivery Customer/Product Combinations 14,000 Transactions/Month In-Person Customer Visits 6,500 27,000 $ K E Y C O M M E R C I A L I N V E S T M E N T S PolyOne Corporation 44 Generating opportunities 37% more sales calls $65M in new revenue from inside sales $400M increase in new opportunities Enhancing efficiency 24% increase in close rate 51% increase in prospecting calls Increased commercial headcount 119 13211 1315 23 2014 Q1 2018 Sales R&D / Technical Marketing + 18% + 53% + 11% PolyOne Corporation 45 Providing differentiated services that meet the needs of the changing customer landscape G R O W T H T H R O U G H I N S I D E S A L E S $4 $65 2014 2017 PolyOne Distribution Inside Sales $ in millions PolyOne Corporation 46 G R O W T H T H R O U G H M U L T I P L E S A L E S C H A N N E L S Technical Field Sales Key Accounts / Industry Sales Inside Sales Serving a broad spectrum of customers Leveraging digital systems to drive awareness and enhance the customer experience N E W R E S O U R C E S F U E L I N G T H E F U T U R E PolyOne Corporation 47 P O D S A L E S F U N N E L +27% 2014 $1.2 billion 2017 $1.6 billion C O M M E R C I A L R E S O U R C E S I N N O V A T I O N S E R V I C E I N S P I R E D F U T U R E 6-8% annual increase in commercial resources >10% annual increase in revenue from inside sales and digital with expanded customer touch points 8% annual expansion of sales funnel with best-in-class service and technical expertise 6-8% compound annual operating income growth 6-7% operating margins PolyOne Corporation 48 SPECIALTY ENGINEERED MATERIALS PolyOne Corporation 49 M I C H A E L G A R R A T T S P E C I A L T Y E N G I N E E R E D M A T E R I A L S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 50 Engineered Formulations Advanced Composites Thermoplastic Elastomers Consumer 20% Transportation 19% Electrical & Electronics 15% Wire & Cable 13% Healthcare 11% Industrial 8% Packaging 7% Appliance 4% Building & Construction 3% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S Revenue by Region Operating Income & Margin 2 0 1 7 R E V E N U E | $ 6 2 4 M I L L I O N PolyOne Corporation 51 $21 $57 $76 0.1% 5.1% 9.3% 12.1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 20 30 40 50 60 70 80 90 2005 2009 2013 2017 Europe 28% United States 48% Asia 22% Canada 2% C A P I T A L I Z I N G O N T H E G L O B A L M A R K E T PolyOne Corporation 52 Demand for engineered materials is accelerating Expanding thermoplastic elastomer portfolio to meet the demands of local consumption Grow and develop low smoke, non-halogen technologies to meet increasing European standards Adding capacity in strategic markets India Germany China North America Establishing a commercial hub in Southeast Asia C O M M E R C I A L R E S O U R C E S I N N O V A T I O NS E R V I C E S T R A T E G I C I N V E S T M E N T I N 3 K E Y A R E A S PolyOne Corporation 53 K E Y C O M M E R C I A L I N V E S T M E N T S PolyOne Corporation 54 Generating opportunities 13% more sales calls 36% increase in customization projects $270M increase in new opportunities Enhancing efficiency 12% reduction in average territory size, enabling greater customer focus 50% improvement in speed of formulation turnaround Increased commercial headcount 133 17335 39 120 147 2014 Q1 2018 R&D / Technical Marketing Sales + 30% + 11% + 23% N E W R E S O U R C E S F U E L I N G T H E F U T U R E PolyOne Corporation 55 S E M S A L E S F U N N E L +43% 2014 $610 million 2017 $880 million L S S C U S T O M E R F I R S T G R O W T H T H R O U G H S E R V I C E PolyOne Corporation 56 Leading Sporting Goods Manufacturer Provided Lean Six Sigma training and led an onsite Black Belt project to improve product development cycle times Reduced innovation project cycle times by over 10% and prototyping by 40% 80% increased production resulting in $500k savings I N N O V A T I O N S P O T L I G H T : C O M P O S I T E S PolyOne Corporation 57 C O M P O S I T E S R E F R E S H E R PolyOne Corporation 58 Fiber Polymer Composite Strength Design Flexibility Continuous Fiber Thermoset Composites Short Glass Fiber Thermoplastics Continuous Fiber Thermoplastic Composites Long Glass Fiber Thermoplastics S T R A T E G I C I N V E S T M E N T H I S T O R Y PolyOne Corporation 59 Acquired Polystrand Installed LFT production Avon Lake Long Fiber Thermoplastic (LFT) Technology Installed LFT production Barbastro, Spain Acquired Glasforms Acquired Gordon Composites Thermoplastic Composites Long Fiber Reinforced Thermoplastics Continuous Fiber Thermosets 2010 2012 2015 2016 20162009 20122011 2014 C O M P O S I T E S I N T R A N S P O R T A T I O N PolyOne Corporation 60 W A T E R C R A F TR A I L H E A V Y T R U C K Bulkheads and Transoms Ceilings and Hatches Doors and Cabinetry Flooring Door Panels Side Walls Flooring & Side Panels Aerodynamic Fairings Seat and Bunk Reinforcements 17 44 At Acquisition Now Commercial Resources 0% 20% At Acquisition Goal Operating Margins Test Market Innovation Projects 8 PolyOne Corporation 61 A D V A N C E D C O M P O S I T E S Long-term investments align with key global megatrends Light-Weighting Design Flexibility Sustainability C O M M E R C I A L R E S O U R C E S I N N O V A T I O N S E R V I C E I N S P I R E D F U T U R E 6-8% annual increase in commercial resources >10% annual increase in customization projects 10% annual expansion of sales funnel, enhancing portfolio in 4 focus end markets 20% increase in global capacity 12-15% compound annual operating income growth 14-16% operating margins PolyOne Corporation 62 PERFORMANCE PRODUCTS & SOLUTIONS PolyOne Corporation 63 D O N W I S E M A N P E R F O R M A N C E P R O D U C T S & S O L U T I O N S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 64 Specialty Vinyl Solutions Healthcare Formulations Smart Device Materials Flame Retardant Polymers Building & Construction 30% Industrial 18% Transportation 16% Wire & Cable 15% Appliance 7% Packaging 5% Consumer 5% Electrical & Electronics 3% Healthcare 1% Asia 2% United States 77% Mexico 5% Canada 16% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S Operating Income & MarginRevenue by Region 2 0 1 7 R E V E N U E | $ 7 2 1 M I L L I O N $40 $33 $56 $77 4.6% 3.6% 7.2% 10.7% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 0 10 20 30 40 50 60 70 80 90 100 2005 2009 2013 2017 PolyOne Corporation 65 $886 $668 $773 $721Sales C O M M E R C I A L R E S O U R C E S I N N O V A T I O NS E R V I C E S T R A T E G I C I N V E S T M E N T I N 3 K E Y A R E A S PolyOne Corporation 66 K E Y C O M M E R C I A L I N V E S T M E N T S PolyOne Corporation 67 Generating opportunities 25% more sales calls 113% increase in innovation pipeline $240M increase in new opportunities Enhancing efficiency 36% increase in prospecting calls 300 basis point improvement in operating margin Increased commercial headcount 57 66 17 18 37 53 2014 Q1 2018 R&D / Technical Marketing Sales + 16% + 43% + 6% N E W R E S O U R C E S F U E L I N G T H E F U T U R E PolyOne Corporation 68 P P & S S A L E S F U N N E L +40% 2014 $610 million 2017 $850 million L S S C U S T O M E R F I R S T G R O W T H T H R O U G H S E R V I C E PolyOne Corporation 69 Leading Wire & Cable Manufacturer Provided Lean Six Sigma training and led on-site Kaizen process improvements Reduced over 400 labor hours through reorganized work area and floor space Increased manufacturing throughput value $1.4M G R O W T H T H R O U G H S E R V I C E PolyOne Corporation 70 IQ Design is collaborating with a leading medical device manufacturer to replace metal and provide chemical resistance to solve cracking issues related to intense cleaning requirements H E A L T H C A R E I N N O V A T I O N S I N N O V A T I O N S P O T L I G H T : F L A M E R E T A R D A N T P O L Y M E R S PolyOne Corporation 71 F L A M E R E T A R D A N T D R I V E R S PolyOne Corporation 72 Shift toward less toxic solutions Increased consumer awareness Focus on environmentally friendly solutions New regulatory standards F L A M E R E T A R D A N T P E R F O R M A N C E S P E C T R U M PolyOne Corporation 73 Flame Retardant Flame Retardant Flame Retardant Non-Halogen No Dripping Low Smoke Low Toxicity & Corrosiveness H A L O G E N N O N - H A L O G E N L S F O H ( L o w S m o k e a n d F u m e , N o n - H a l o g e n ) Non-Halogen R E G U L A T O R Y C H A N G E S P R O V I D E O P P O R T U N I T Y L E D S O L U T I O N S PolyOne Corporation 74 Solutions for rigid molded & extruded applications Superior outdoor weather performance Excellent light dispersion qualities Formulated to meet stringent flame-rating regulations Custom design support to meet demand C O M M E R C I A L R E S O U R C E S I N N O V A T I O N S E R V I C E I N S P I R E D F U T U R E 6-8% annual increase in commercial resources 8% more sales calls annually 10% annual expansion of sales funnel, including breakthroughs in healthcare technologies 8-10% compound annual operating income growth 12-14% operating margins PolyOne Corporation 75 COLOR ADDITIVES & INKS PolyOne Corporation 76 M A R K C R I S T C O L O R , A D D I T I V E S & I N K S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 77 Solid Colorants Performance Additives Screen Printing Inks Liquid Colorants Packaging 27% Industrial 14% Textiles 12% Building & Construction 10% Wire & Cable 10% Transportation 8% Consumer 7% Healthcare 6% Electrical & Electronics 3% Appliance 3% Operating Income & MarginRevenue by Region C O L O R , A D D I T I V E S & I N K S 2 0 1 7 R E V E N U E | $ 8 9 3 M I L L I O N $4 $25 $104 $139 0.9% 5.5% 12.2% 15.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20 30 40 50 60 70 80 90 100 110 120 130 140 150 2005 2009 2013 2017 PolyOne Corporation 78 Europe 32% United States 46% Asia 15% Canada 1% Mexico 4% Brazil 2% C A P I T A L I Z I N G O N T H E G L O B A L M A R K E T PolyOne Corporation 79 Emerging markets driving strong demand for color and additives Rapid adoption of food and beverage packaging additives Fiber colorants growth focused on expanding Asia-Pacific market Increase commercial investments focused on China, India and Mexico Expand capacity in China and leverage investments in India Recent acquisitions increasing global reach C O M M E R C I A L R E S O U R C E S I N N O V A T I O NS E R V I C E S T R A T E G I C I N V E S T M E N T I N 3 K E Y A R E A S PolyOne Corporation 80 K E Y C O M M E R C I A L I N V E S T M E N T S PolyOne Corporation 81 Generating opportunities 35% more sales calls 30% increase in customized color formulations 106% increase in innovation pipeline $170M increase in new opportunities Enhancing efficiency 20% increase in prospecting calls 9 days or less in design turnaround time: best-in-class Increased commercial investment 301 382 38 43 209 275 2014 Q1 2018 R&D / Technical Marketing Sales + 27% + 13% + 32% N E W R E S O U R C E S F U E L I N G T H E F U T U R E PolyOne Corporation 82 C A I S A L E S F U N N E L +32% 2014 $540 million 2017 $710 million L S S C U S T O M E R F I R S T PolyOne Corporation 83 Developed inventory management framework to reduce working capital by 20% Printing Equipment and Supply Manufacturer Provided Lean Six Sigma training and conducted process mapping exercises to identify key improvement opportunities Optimize manufacturing: 45% improvement in assembly process, 25% improvement in cycle time G R O W T H T H R O U G H S E R V I C E I N N O V A T I O N S P O T L I G H T : A D D I T I V E & C O L O R A N T T E C H N O L O G I E S PolyOne Corporation 84 B A R R I E R T E C H N O L O G I E S Active oxygen scavenging additive in the bottle wall Evolving technology for active oxygen scavenging additive in the bottle cap Amosorb™ HyGuard™ UV and visible light blocking additive to prevent degradation of product Lactra™ SX Market leader in oxygen, light and UV barrier solutions for the PET bottle market PolyOne Corporation 85 S T R A T E G I C A D D R E S S A B L E M A R K E T > $ 2 0 0 M F I B E R C O L O R A N T S Eliminate waste water associated with conventional dyeing Help meet sustainability targets for brand owners Enable “uncolored fiber” producers to bypass dyehouse Strategic addressable market >$300M PolyOne Corporation 86 S T R A T E G I C I N V E S T M E N T H I S T O R Y PolyOne Corporation 87 Thermoplastic Composites 2011 2015 2018 Acquired ColorMatrix Acquired Magenta Acquired IQAP $10 $45 2014 2017 Revenue from Fiber Color ($ in millions) Invested in development of liquid fiber colorant technology Expanded solid colorant offerings 38 43 At Acquisition Now Commercial Resources Innovation Projects 5 PolyOne Corporation 88 I N V E S T I N G F O R T H E F U T U R E Nearly 900 projects identified Gaining sustainable momentum & building trust with consumers Fiber Sales Funnel $125M “We are unleashing the power of human potential, all to advance the game.
https://www.avient.com/sites/default/files/resources/PolyOne%25202014%2520Annual%2520Report.pdf
Designed Structures and Solutions is comprised of the former Spartech Custom Sheet and Rollstock and Packaging Technologies businesses.
These increases were partially offset by a 6.2% decline in volume primarily in the industrial and packaging end markets.
Designed Structures and Solutions is comprised of the former Spartech Custom Sheet and Rollstock and Packaging Technologies businesses.
https://www.avient.com/sites/default/files/2023-08/Avient General Purchase Conditions.pdf
Unless expressly stated to the contrary, prices are (i) fixed and firm (ii) exclusive of any Value Added Tax (“VAT”) but (iii) inclusive of all other taxes, duties, levies, fees (including license fees), labeling, packaging, shipping, charges and inclusive all costs. 3.2 Avient shall pay the amount invoiced by Supplier by bank transfer as follows: 3.2.1 North America.
Delivery, warranty and acceptance of Goods 5.1 Unless explicitly agreed otherwise, the Goods shall be delivered according to Incoterm DAP site Avient Incoterms 2020 ®. 5.2 Delivery shall be realized in adequate and approved packaging.
Costly and re-usable packaging shall be taken back by Supplier.
https://www.avient.com/sites/default/files/2025-06/CM Europe Ltd Modern_Slavery_Statement_2025.pdf
Our total raw
material, equipment and packaging spend for 2024 was ~$21 Million.
https://www.avient.com/sites/default/files/2022-10/ColorMatrix FlexOne Brochure.pdf
The overall system delivers sustainable liquid metering with user-friendly technology, high yield, reduced logistics impact and recyclable packaging.
https://www.avient.com/sites/default/files/2022-08/ColorMatrix Excelite Product Bulletin.pdf
PRODUCTS APPLICATIONS DESCRIPTION/BENEFITS EXCELITE PF-1 PVC sheet for digital print or trimboard; profiles & decking Fine cell structure able to target low density: improves consistency and control over foaming process FOAM ADDITIVE-54 PVC sheet for digital print or trimboard; profiles & decking Finer cell structure than PF-1 promotes ultra smooth surface finish; improves consistency and control over foaming process PF-1E & FA-54E ADDITIVES PVC sheet for digital print or trimboard; profiles & decking Enhanced run time formulation reduces die lip build-up in PVC processes, leading to longer production run times FOAM ADDITIVE-33 CaZN formulations for PVC sheet, profile, or trimboard Promotes finer cell structure, higher cell density, and surface quality in CaZN PVC dryblends FOAM ADDITIVE-77 HDPE sheet & plastic lumber Industry-leading cell structure and cell density; achieves lower density without sacrificing quality; self-nucleating and able to increase extruder output rates up to 15% FOAM ADDITIVE-85 Endothermic foam or nucleating additive for olefin and styrene polymers; plastic lumber, sheet applications and food packaging products Can be used as a CFA or nucleating additive; nucleating capabilities promote fine cell structure and high cell density; achieves greater density reductions with more consistency and control FOAM ADDITIVE-37 HDPE sheet & plastic lumber Good cell structure and cell density in HDPE lumber; greater consistency and control over foaming process EXCELITE CAN IMPROVE PRODUCTION EFFICIENCY • The process operator has full control of density • Minimizes product rejection due to unnecessarily high/low density • Production should consistently target the bottom of the density specification • Enables control over the reintroduction of regrind or reprocessed materials as a feedstock • Enables the consistent foaming of products using higher percentages of regrind • Carrier selection can promote longer run times, enabling increased line productivity through less plate-out or material build-up on die lips EXCELITE CAN IMPROVE SURFACE FINISH Excelite additives creates a fine, consistent cell structure within the extruded polymer, which determine the surface roughness.
https://www.avient.com/sites/default/files/2025-03/ColorMatrix SmartHeat RHC Brochure.pdf
This effect contributes towards reducing CO2 emissions. 14 15 16 17 8 9 10 11 0 20 40 60 80 100 0 50 100 150 200 250 300 350 400 450 Increasing SmartHeat RHC Concentration Translates to 25% CO2 reductions based on energy savings reducing CO2 emissions by 114 tonnes per year on one commercial blowing line CO 2 (t on ne s) 14 15 16 17 8 9 10 11 0 20 40 60 80 100 0 50 100 150 200 250 300 350 400 450 SmartHeat RHC products are supplied in ColorMatrix™ approved packaging and are active as supplied.
https://www.avient.com/sites/default/files/2020-08/colormatrix-aazure-brochure-1.pdf
This effect contributes towards reducing CO2 emissions. 14 15 16 17 8 9 10 11 0 20 40 60 80 100 120 0 50 100 150 200 250 300 350 400 450 500 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 Increasing ColorMatrix AAzure Concentration Translates to 25% CO2 reduction based on 25% energy reduction in bottle blowing process CO 2 (t on ne s p er y ea r) 14 15 16 17 8 9 10 11 0 20 40 60 80 100 120 0 50 100 150 200 250 300 350 400 450 500 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 ColorMatrix AAzure products are supplied in ColorMatrix approved packaging and are active as supplied.
https://www.avient.com/sites/default/files/2023-08/Maxxam BIO Bio-Based Polyolefin Formulations Product Bulletin.pdf
KEY CHARACTERISTICS Formulated with bio-based resin and/or 10–50% filler from renewable plant sources, Maxxam BIO formulations: • Reduce product carbon footprint • Achieve equivalent performance to standard polyolefin formulations • Provide good stiffness, durability, impact resistance and UV stability • Deliver good surface finish and are easy to color • Enable customized performance characteristics depending on application need • Offer food contact compliance MARKETS AND APPLICATIONS Maxxam BIO formulations are suitable for use across many industries and applications where traditional polyolefin materials are used, including: • Transportation Interior Applications - Decorative profiles, trunk side liners, pillars, T-cup • Industrial - Structural parts, furniture • Consumer - Household goods, personal care items, packaging, office supplies, food contact applications • Electrical and Electronic – Housings, buttons, junction boxes SUSTAINABILITY BENEFITS • Formulated with bio-based resin and/or 10–50% natural filler • Utilize natural filler from renewable plant sources including olive seed based powder and cellulose fiber • Offer a lower product carbon footprint compared to traditional petroleum-based feedstock • Can be recycled at end of life PRODUCT BULLETIN CHARACTERISTICS UNITS Maxxam BIO MX5200-5036 Natural FD Maxxam BIO MX5200-5030 Natural FD Maxxam BIO MX5200-5030 Natural FD X1 Maxxam BIO MX5200-5001 RS HS Natural Maxxam BIO MX5200-5033 RS HS Natural Maxxam BIO MX5200-5034 RS HS Natural Maxxam BIO MX5200-5035 RS HS Natural Filler/Reinforcement Unfilled Unfilled Unfilled 30% Glass Fiber 10% Mineral 20% Mineral 30% Mineral Density (ISO 1183) g/cm 0.90 0.90 0.90 1.12 0.96 1.03 1.12 Tensile Modulus (ISO 527-1) @ 23°C MPa 1500 1000 1000 6400 1350 1650 2100 Tensile Stress (ISO 527-2) @ 23°C MPa 27.0 20.0 20.0 75.0 13.0 14.0 15.0 Tensile Strain at Break (ISO 527-2) @ 23°C % 5 50 50 3.0 50 37 18 Charpy Notched (ISO 179) kJ/m 5 20 25 10 12 10 10 CHARACTERISTICS UNITS Maxxam BIO MX5200-5023 RS HS HI Natural 70 Maxxam BIO MX5200-5025 RS HS Natural 70 Maxxam BIO MX5200-5004 RS HS Natural 70 Maxxam BIO MX5200-5003 RS Natural 70 Maxxam BIO MX5200-5009 RS HS Natural 70 Maxxam BIO MX5200-5024 RS HS Natural 70 Maxxam BIO MX5200-5022 RS HS Natural 70 Filler/Reinforcement 15% Olive Seed Based 25% Olive Seed Based 30% Olive Seed Based/ 10% Mineral 35% Olive Seed Based/ 5% Mineral 15% Olive Seed Based/ 17% Glass Fiber/ Mineral 20% Olive Seed Based/ 20% Glass/ Mineral 10% Olive Seed Based/ 20% Mineral Density (ISO 1183) g/ccm 1.00 1.15 1.10 1.07 1.09 1.25 1.10 Tensile Modulus (ISO 527-1) @ 23°C MPa 1750 2000 2700 2500 3800 3500 4100 Tensile Stress at Break (ISO 527-2) @ 23°C MPa 21.0 20.0 30.0 20.0 40.0 35.0 42.0 Tensile Strain at Break (ISO 527-2) @ 23°C % 24 5 3 5 3 4 2 Notched Izod (ISO 180) kJ/m 15 7 3 2 5 15 7 MAXXAM BIO POLYOLEFINS – BIO-BASED RESIN – TECHNICAL PERFORMANCE MAXXAM BIO POLYOLEFINS – OLIVE SEED BASED FILLER – TECHNICAL PERFORMANCE CHARACTERISTICS UNITS Maxxam BIO MX5200-5029 NF HI UV Black X1 Maxxam BIO MX5200-5032 NFS UV Natural Maxxam BIO MX5200-5020 NF/NFS UV Natural X1 Maxxam BIO MX5200-5016 NF Natural Filler/Reinforcement 10% Cellulose Fiber 20% Cellulose Fiber 30% Cellulose Fiber 40% Cellulose Fiber Density (ISO 1183) g/ccm 0.95 1.00 1.02 1.07 Tensile Modulus ISO 527-1) @ 23°C MPa 1550 1750 2640 3600 Tensile Stress at Break (ISO 527-2) @ 23°C MPa 33 30 48 55 Tensile Strain at Break (ISO 527-2) @ 23°C % 8 12 9 4 Charpy Notched Impact Strength (ISO 179/1eA) kJ/m2 5 6 5 5 Charpy Unnotched Impact Strength (ISO 179/1eU) kJ/m2 33 49 38 30 MAXXAM BIO POLYOLEFINS – CELLULOSE FIBER FILLER – TECHNICAL PERFORMANCE Copyright © 2023, Avient Corporation.
https://www.avient.com/sites/default/files/resources/POL%2520Gabelli%2520IR%2520Presentation%2520w%2520Non-GAAP%252003%252020%25202014.pdf
Use of Non-GAAP Measures Page 3 PolyOne Commodity to Specialty Transformation Page 4 • Continue specialty transformation • Targeting $2.50 Adjusted EPS by 2015, nearly double 2013 EPS • Drive double digit operating income and adjusted EPS growth • 17 consecutive quarters of double- digit adjusted EPS growth • Shift to faster growing, high margin, less cyclical end markets • Key acquisitions propel current and future growth, as well as margin expansion • Established aggressive 2015 targets • Steve Newlin Appointed, Chairman, President and CEO • New leadership team appointed • Implementation of four pillar strategy • Focus on value based selling, investment in commercial resources and innovation to drive transformation • Volume driven, commodity producer • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures 2000-2005 2006 - 2009 2010 – 2013 2014 and beyond -150.00% -50.00% 50.00% 150.00% 250.00% 350.00% PolyOne S&P 500 Russell 2000 Dow Jones Chemical All time high of $38.38 March 7th, 2014 • 17 consecutive quarters of double digit EPS growth • 49% CAGR adjusted EPS expansion 2006-2013 • 2013 stock price increased 73% versus 30% growth in the S&P • More than seven fold increase in market cap: $0.5b $3.6b Strategy and Execution Drive Results Page 5 Appliance 4% Building & Construction 13% Wire & Cable 9% Electrical & Electronics 5% Consumer 10%Packaging 16% Industrial 12% HealthCare 11% Transportation 18% Misc. 2% United States 66% Europe 14% Canada 7% Asia 6% Latin America 7% PP&S 20% Specialty 53% Distribution 27% 0.12 0.27 0.21 0.13 0.68 0.82 1.00 1.31 2.50 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 $2.50 2006 2007 2008 2009 2010 2011 2012 2013 2015 Target Ad ju st ed E ar ni ng s P er S ha re 2013 Revenues: $3.8 Billion End Markets 2013 Revenues: $3.8 Billion EPS Page 6 PolyOne At A Glance Old PolyOne Transformation *Operating Income excludes corporate charges and special items 2% 34% 43% 62% 65- 75% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2013 2015 % o f O pe ra tin g In co m e* JV's Performance Products & Solutions Distribution Specialty Specialty OI $5M $46M $87M $195M Target Mix Shift Highlights Specialty Transformation 2015 Target Page 7 2006 2013 2015 “Where we were” “Where we are” Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 12.2% 12 – 16% Global Specialty Engineered Materials 1.1% 9.3% 12 – 16% Designed Structures & Solutions -- 5.6% 8 – 10% Performance Products & Solutions 5.4% 7.2% 9 – 12% Distribution 2.6% 5.9% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 62% 65 – 75% 3) ROIC* (after-tax) 5.0% 9.1% 15% 4) Adjusted EPS Growth N/A 31% Double Digit Expansion Proof of Performance & 2015 Goals *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period Page 8 Bridge To $2.50 Adjusted EPS By 2015 2015 EPS: $2.50 2013 EPS: $1.31 Mid single digit revenue CAGR Page 9 Mergers & Acquisitions Spartech accretion Incremental share buybacks Ongoing LSS Programs (50-100 bps/yr) Accelerated Innovation & Mix Improvement Innovation Drives Earnings Growth $20.3 $52.3 2006 2013 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* *Percentage of Specialty Platform revenue from products introduced in last five years Page 10 14.3% 30.7% 2006 2013 Specialty Platform Gross Margin % 19.5% 43.0% 2006 2013 Healthcare Consumer Packaging and Additive Technology Transportation Page 11 Unique and Innovative Solutions that Help Customers Win https://www.dropbox.com/sh/dwe4t8aacvhb8ui/uD3p_bdglP/Presentation revise pics/GLS Beverage can closure XO 2.jpg https://www.dropbox.com/sh/dwe4t8aacvhb8ui/-YgkycKypw/Anti-Counterfeiting release & images/GN1979.JPG Net Debt / EBITDA* = 1.8x $48 $317 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Significant Debt Maturities As of December 31, 2013 ($ millions) Page 12 Coupon Rates: 7.500% 7.375% 5.250% Debt Maturities & Pension Funding – 12/31/13 *TTM 12/31/2013 ** includes US-qualified plans only 60% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2013 Pension Funding** As of December 31, 2013 Free Cash Flow and Strong Balance Sheet Fund Investment •Targets that expand our: • Specialty offerings •End market presence •Geographic footprint •Operating Margin • Synergy opportunities •Adjacent material solutions •Expanding our sales, marketing, and technical capabilities • Investing in operational and LSS initiatives (including synergy capture) •Manufacturing alignment Organic Growth Share Repurchases Dividends Acquisitions Page 13 $0.16 $0.20 $0.24 $0.32 $0.00 $0.10 $0.20 $0.30 $0.40 2011 2012 2013 2014 Annual Dividend • Repurchased ~5 million shares in 2013 • 15 million shares are available for repurchase under the current authorization The New PolyOne: A Specialty Growth Company 2015 Target: $2.50 Adjusted EPS Why Invest In PolyOne?