https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Jefferies%2520Conference%2520-%25208%253A7%253A2018.pdf
Investor Day
P O L Y O N E
I N V E S T O R
P R E S E N T A T I O N
A U G U S T 2 0 1 8
F O R W A R D L O O K I N G S T A T E M E N T S
PolyOne Corporation 2
•
•
•
•
•
•
•
•
•
U S E O F
N O N - G A A P
M E A S U R E S
PolyOne Corporation 3
•
•
•
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
Operational
Excellence
Commercial
Excellence
Specialization
Globalization
Collaboration ExcellenceInnovation
To be the world’s
premier provider of
specialized polymer
materials, services
and solutions
S A F E T Y F I R S T
PolyOne Corporation 5
1.3
1.1 1.1
0.85
0.65
0.57
0.54
0.97
0.84
0.74 0.74
0.69
0.57
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
YTD
Injuries per 100 Workers
Spartech
Acquisition
PolyOne Corporation 6
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*
P R O O F O F P E R F O R M A N C E
C O N S E C U T I V E
Y E A R S
PolyOne Corporation 7
8
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
$2.06
$2.21
2006 2017
“Where we were” “Where we are”
ROIC** 5.0% 14.0%
Operating Income
% of Sales
Color, Additives & Inks 1.7% 15.5%
Specialty Engineered
Materials
1.1% 12.1%
Performance Products
& Solutions
4.3% 10.7%
Distribution 2.6% 6.3%
A D J U S T E D E P S E X P A N S I O N
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 8
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
strategic acquisitions
Innovate
600K-1M
commercial
resources 6-8%
Double acquired
margins
Lean Six Sigma
commercial excellence
531
689130
157
504
633
2014 Q2 2018
R&D / Technical Marketing Sales
PolyOne Corporation 9
Increased commercial headcount
+ 28%
+ 18%
+ 23%
Generating opportunities
35%
25%
1,000
$1.0B
Enhancing efficiency
8%
20%
I N V E S T M E N T I N C O M M E R C I A L R E S O U R C E S D R I V I N G G R O W T H
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 10
Expanded Path
Traditional Path
Strategic Accounts/
Field Sales
Business
Development
Customer
Service
Web and Social
Media
Inside Sales
PolyOne Corporation 11
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
E X P A N D E D P A T H
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
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 12
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 13
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 14
Customization
55%
M&A
30%
Innovation
Pipeline
15%
Innovation comes from Research & Development Spend
Vitality Index
12%
38%
2006 2017
$20
$52
2006 2017
Transformational
Adjacent
Core
3 H O R I Z O N S O F D E V E L O P M E N T
PolyOne Corporation 15
Market
Technical
I N N O V A T I O N
I N N O V A T I O N P I P E L I N E
PolyOne Corporation 16
PrototypeFrame
Opportunity
Scale-up & Test
Market
Build
Business Case
Commercial
Launch
(since 2015)
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
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
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 17
C O M P O S I T E S R E F R E S H E R
PolyOne Corporation 18
Fiber
Polymer
Composite
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
Thermoplastic Composites
Long Fiber Reinforced Thermoplastics
Continuous Fiber Thermosets
Long Fiber Reinforced Thermoplastics
Continuous Fiber Thermosets
2012 2015 20162009 2011 2018
PolyOne Corporation 19
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 20
W A T E R C R A F TR A I L H E A V Y T R U C K
PolyOne Corporation 21
Safety Technology Geography Service FinancialPeople
8-10% with
ability to double
I N V E S T - T O - G R O W M & A S T R A T E G Y
PolyOne Corporation 22
Capture
sourcing
synergies
Cross-sell
& blend
technology
8-10%
operating
margins
I N V E S T - T O - G R O W M & A P L A Y B O O K
Protect
customers
Retain
employees
Implement LSS to
drive efficiency
improvements
Innovate with
combined
portfolio
Safety
First!
T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y
S E R V I C E :
T H E T I M E L E S S
D I F F E R E N T I A T O R
PolyOne Corporation 29
T A L E N T D E V E L O P M E N T
PolyOne Corporation 30
Leadership Program Participants
2012
2013
2014
2015
47
0
86
2016
2018
125
169
315
Campus Hires
2008
2011
2014
2017
0
25
90
47
PolyOne LSS Blackbelts
2008
2011
2014
2018
0
67
220
147
2018 141
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
I Q D E S I G N L A B S
PolyOne Corporation 31
Material
& Color
Expertise
Manufacturing
Expertise
3
14
2014 2017
Industrial designers
$0
$7M
2014 2017
$4M
$40M
2014 2017
Opportunity funnel New business revenue
L S S C U S T O M E R F I R S T
PolyOne Corporation 32
Customer Projects
2014 2017
2 85
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 33
PolyOne Corporation 34
M O N T H M O N T H
M O N T H M O N T H
M O N T H M O N T H
99.9%
up to 24 weeks
6 hours
C O L O R M A T R I X S E L E C T ™
I N N O V A T I N G W I T H P O L Y O N E
PolyOne Corporation 35
S E G M E N T H I G H L I G H T S
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 36
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%
2005 2009 2013 2017
PolyOne Corporation 37
Europe
32%
United
States
46%
Asia
15%
Canada
1%
Mexico
4%
Brazil
2%
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 38
Engineered
Formulations
Advanced
Composites
Thermoplastic
Elastomers
Consumer
20%
Transportation
19%
Wire & Cable
13%
Healthcare
11%
Industrial
8%
Packaging
7%
Appliance
4%
Building &
Construction
3%
Electrical &
Electronics
15%
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 39
$21
$57
$76
0.1%
5.1%
9.3%
2005 2009 2013 2017
Europe
28%
United
States
48%
Asia
22%
Canada
2%
12.1%
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 40
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%
2005 2009 2013 2017
PolyOne Corporation 41
$886 $668 $773 $721Sales
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 42
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%
2005 2009 2013 2017
Operating Income & Margin2017 Revenue | $1.2 Billion
http://www.polyone.com/Pages/VariationRoot.aspx
T A R G E T E N D M A R K E T S &
A P P L I C A T I O N E X A M P L E S
PolyOne Corporation 43
Thermally Conductive
Technologies
Chemical Resistant
Technologies
Polymer Colorants
Elastomeric Grips and
Handles
Structural Composites
Antimicrobial Technologies
Anti-Counterfeiting
Technologies
Target End Markets… Healthcare
Catheter Technologies
Under-hood Components
Target End Markets… Automotive
Interior Structural
Components
Sound & Vibration
Management
Roof Systems
Air Management
Electronics and Cameras
Lighting
Exterior / Interior Trim
Braces & Brackets
Fasteners
Seals & Flaps
Target End Markets… Consumer
Thermally Conductive
Components
Polymer Colorants
Elastomeric Grips and
Handles
Structural Composite
Components
Oxygen Scavenger
Technologies
Laser Marking Additives
Antistatic Technologies
UV Light Barrier Technologies
Cap & Closure Colorants
Process Optimization
Technologies
Antioxidant Technologies
Density Modified
Technologies
Target End Markets… Packaging
Luxury Packaging
GravitechTM Density Modified Polymers
Optimize Color Usage
OnColorTM Super Concentrates
Combat Bacteria Formation
WithStandTM Antimicrobial Technology
Medical Device Housings
Chemically Resistant Engineered Polymers
Color & Design Services
Outdoor Applications
Fiber Colorants
Smart Home Devices
ResilienceTM Vinyl Solutions
�
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https://www.avient.com/sites/default/files/2020-07/avient-abac-english-200720.pdf
Our reputation
for integrity is more important than the potential gains to
be made in dealing inappropriately with other individuals
and organizations.
https://www.avient.com/sites/default/files/2022-05/AVNT May IR Presentation w Non GAAP Recs.pdf
In particular, these include statements relating to future actions; prospective changes in raw material costs, product
pricing or product demand; future performance; estimated capital expenditures; results of current and anticipated market conditions and market strategies; sales efforts; expenses; the outcome of contingencies such as legal proceedings
and environmental liabilities; and financial results.
Financials are pro forma for the acquisition of Dyneema® and potential divestiture of Distribution
Avient Specialty
Formulators
Other Specialty /
Chemical Companies
45
Source: Peer data per Bloomberg market data as of April 21, 2022
Total Enterprise Value / NTM EBITDA
With the Dyneema and Clariant
Color business acquisition and
divestment of the PP&S business,
along with the proposed sale of
our Distribution business, our
exposure is now concentrated in
less-cyclical and high-growth
markets.
We expect this expansion to
continue as we execute our
strategy, increase margins and
consistently grow earnings in
excess of the market.
46
Avient reflects 2022 estimated EBITDA of $635M
Past Avient valuations reflect forward 12 months EBITDA at December 31 of the respective years.
https://www.avient.com/sites/default/files/2024-12/67599-Certificate-06DEC2024.pdf
Administration, Site management, Manufacture, Laboratory, Procurement,
Maintenance, Infrastructure, Warehouse and Transport Sales and Marketing
Via Piave, 12 23871 Lomagna Italy
Avient Colorants Italy
S.R.L.
Administration, Site management, Manufacture, Laboratory, Procurement,
Maintenance, Infrastructure, Warehouse and Transport Sales and Marketing
Via Bergamo, 51 / 67 23807 Merate
Italy
Avient Colorants Italy
S.R.L.
Administration, Site management, Manufacture, Laboratory, Procurement,
Maintenance, Infrastructure, Warehouse and Transport Sales and Marketing
Via Lainate, 26 20005 Pogliano
Milanese Italy
Avient Japan K.K.
https://www.avient.com/sites/default/files/2021-04/bergamid-electronic-connectors-case-study.pdf
TECHNICAL EXPERTISE HELPS ELECTRONIC CONNECTOR
COMPANY ENTER NEW MARKET
© 2021, All Rights Reserved
Avient Corporation, 33587 Walker Road, Avon Lake, Ohio USA 44012
To learn more about Bergamid™ Nylon
Formulations, contact Avient at
+1.844.4AVIENT (1.844.428.4368)
or visit us at avient.com.
Meet targeted cost-performance requirements – The
selected resin must offer significant savings over the
current LCP/carbon fiber formulation through material
and/or manufacturing savings, thus enabling penetration
of the low-cost computer market with a competitive
connector.
Working closely with the
manufacturer’s engineers, Avient determined that the material
required a special combination of properties:
• A heat-resistant base resin that would provide the level of
signal dampening prescribed
• Mechanical properties that would ensure an effective
electrical connection and at the same time allow for
snap-fit installation
• A cost-effective solution that would enable the
manufacturer to compete in this new market
Striving for optimal results, the manufacturer evaluated more
than 30 different materials.
https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202012%2520-%2520Performance%2520Products%2520and%2520Solutions.pdf
Rosenau
Page 84
United
States
81%
Europe
Canada
15%
Asia
2%
2011 Revenue: $0.9 Billion2011 Revenue: $0.9 Billion SolutionsSolutions
At a Glance
Performance Products and Solutions
Europe
2%
2%
$400
$600
$800
$1,000
$1,200
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
2006 2007 2008 2009 2010 2011 2015
S
a
le
s
($
m
il
li
o
n
s)
O
p
e
ra
ti
n
g
I
n
c
o
m
e
%
o
f
S
a
le
s
Operating Income % and Revenue
2011 Revenue by Industry Segment2011 Revenue by Industry Segment Expanding ProfitsExpanding Profits
OI % of Sales Sales
9-12%
Appliance
4%
Building &
Construction
30%
Wire & Cable
17%
Electrical &
Electronics
2%
Consumer
4%
Packaging
9%
Industrial
20%
Misc.
2%
HealthCare
2%
Transportation
8%
Textiles
2%
Target
Page 85
• Trend toward more
affordable housing
favors our product
1.5
2.0
2.5
Housing Starts
(in million units)
50 year average
Market Dynamics
Performance Products and Solutions
• Ultimate housing
recovery presents
substantial upside to
already record-
setting results
Source: Historical Data from the US Census Bureau,
2012 estimate is a PolyOne projection.
0.0
0.5
1.0
'87 '89 '91 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12
Page 86
Value Proposition
• Premier provider of specialized vinyl and supply chain solutions, leading
the industry in innovation and service
Transformation Highlights
• Management upgrades ensure that each PP&S business
Value Proposition and Transformation Highlights
Performance Products and Solutions
• Management upgrades ensure that each PP&S business
maximizes performance
• Asset realignment and Lean Six Sigma reduce costs
• Strengthened relationship with winning customers
• Increased differentiation in all business units
> $12B Addressable Market
Page 87
Key Differentiators
Performance Products and Solutions
• Providing application design, material design
and / or process design assistance not available
from competitors
• Capability to improve joint value streams
• We are the best innovator in our space • We are the best innovator in our space
• Expanding customers’ opportunities
by providing innovative materials
and marketing ideas
• We provide world-class customer
service and delivery performance
Page 88
13.7% 14.3%
15.5%
9.9%
6.2%
5.4%
2006 2007 2008 2009 2010 2011
WC % of Sales
• Best-in-class working
capital management and
delivery performance
• Improved raw material
Areas of Focus – Operational Excellence
Performance Products and Solutions
2006 2007 2008 2009 2010 2011
89.1%
92.0%
94.2%
93.4% 93.4% 94.0%
2006 2007 2008 2009 2010 2011
On-Time Delivery
• Improved raw material
positions, sourcing savings
• PolyOne pilot site for many
LSS and manufacturing
excellence programs
*As measured to customer request date
*
Page 89
• reFlexTM Bioplasticizers
Applications: Wide variety of flexible vinyl-based products
• GeonTM HC for Healthcare
� Applications: Medical device housings, specialty tubing
� Customer benefits: Withstand aggressive antiseptics
Key Innovations
Performance Products and Solutions
� Applications: Wide variety of flexible vinyl-based products
� Customer benefits: Lower carbon footprint,
improved productivity
• GeonTM SF Super Flow
� Applications: Large appliance parts, molded siding panels
� Customer benefits: Flame retardancy, detergent resistance
Page 90
Critical Imperatives and 2015 Goal
Performance Products and Solutions
Critical Imperatives
• Accelerate innovation - grow in new applications not
historically served with vinyl
• Drive continuous improvement in manufacturing and
working capital efficienciesworking capital efficiencies
• Selectively leverage construction recovery
2015 Goal
• 9 - 12% return on sales
Page 91
Page 92
https://www.avient.com/sites/default/files/2023-10/Cesa Unify A4R Product Bulletin.pdf
Cesa™ Unify™ A4R
Polyolefin Compatibilizer for Enhanced Recycling
RECYCLED MATERIAL IN A CHANGING
MARKET
Legislation globally is driving change towards
increased quantities of post-consumer recycled
(PCR) materials, further encouraged by the
implementation of usage targets and new tariffs.
Both legislation and industry
goals have created an increased demand for
recycled material across the plastics industry, but
especially within the packaging market.
This
literature shall NOT operate as permission, recommendation, or inducement to practice any patented invention without permission of the patent owner.
1.844.4AVIENT
www.avient.com
KEY CHARACTERISTICS
• Designed for polyolefin recycling and to
enhance circularity
• Helps bring incompatible polymers together
by forming them into a homogenous polymer
mixture
• Improves the mechanical performance of mixed
PP/PE streams
• Increases impact strength by up to 50%
• Increases ductility by up to 100% for improved
performance
• Maintains mechanical strength properties close
to polymer starting point
• The end result is that the characteristics of rPP
remain with higher impact properties
• Good cost-performance ratio
• Can be combined with color into a single
masterbatch product for convenience
• Product guidance and technical assistance
is available from our experts
MARKETS & APPLICATIONS
• Recycled polyolefins
• Packaging, consumer & others
• High-value polyolefin applications with recycled
material content
• Virgin polymers which will be recycled after the
use phase
Currently unavailable in North America —please contact your
Avient representative for further information.
https://www.avient.com/sites/default/files/2020-08/bottle-optimization-brochure-8.5x11.pdf
THE PATH TO AN
OPTIMIZED BOTTLE
You invest incredible energy
developing and marketing
your products.
Polymer science,
industry-leading expertise with
colors and additives, and our
in-house color design service make
us a powerful collaborator during
bottle design, manufacturing,
and product marketing.
They provide leading-edge insight in
polymer science, packaging design and consumer trends while helping you explore innovative
colorants and effects that will set you apart in the market
https://www.avient.com/products/thermoplastic-elastomers/versaflex-thermoplastic-elastomers
Versaflex™ thermoplastic elastomers serve consumer, packaging and healthcare markets.
Marketing + Technical Info
Glow-in-the-dark controller grips gain comfortable advantage with Versaflex™ OM
https://www.avient.com/industries/packaging/beverage-packaging/sports-and-energy
Product description, value solution, key characteristics, target market, applications and technology components (Chinese language version)
Product description, value solution, key characteristics, target market, applications and technology components (English language version)
Glow-in-the-dark controller grips gain comfortable advantage with Versaflex™ OM