https://www.avient.com/sites/default/files/resources/11.30.18%2520Investor%2520Presentation%2520V1.pdf
PolyOne’s chief operating decision maker uses these financial measures to
monitor and evaluate the ongoing performance of the Company and each
business segment and to allocate resources.
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
At Acquisition Today
$36
$90
At Acquisition Today
11%
20%
At Acquisition Today
Established Acquisitions
(> 7 years)
+ 40% + 150% + 900 bps
I N V E S T - T O - G R O W D R I V I N G T H E F U T U R E
PolyOne Corporation 24
Commercial
Resources
Operating
Income
($ in millions)
Operating
Margins
113
144
206
At Acquisition Today Goal
$16
$18
$60
At Acquisition Today Goal
7% 8%
18-20%
At Acquisition Today Goal
Recent Acquisitions
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
$820M
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
$0.78
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%
14.0%
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 ?
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
Growing leadership position in attractive markets
Innovation, technology and service are differentiators
Capital management is a strength: Record-setting cash generation
to continue for years
Expand ROIC while increasing invested capital
Proven acquisition strategy with robust pipeline
Commercial investments are fueling momentum and generating
organic growth
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
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
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
Enables validation of fit and function
Shortens design cycle and time to market
Avoids tooling rework
Drives innovation
Delivers substantial customer value
PolyOne Corporation 34
From concept to production
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%
Reduction in
turnaround time
Traditional Timeline
up to 24 weeks
PolyOne ColorMatrix
Select™
6 hours
Innovative system for processors and OEMs to develop colors in real time
Complete system that provides customers with the freedom to match,
prototype and produce color entirely within their own facility
C O L O R M A T R I X S E L E C T ™
“Being able to create color and produce parts in 1 day is unheard of in this industry”
-CEO, Industry Leader
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%
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 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%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
20
30
40
50
60
70
80
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
$24
$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 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%
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
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
Impart weight, sound and
metallic finish to caps and
closures for cosmetics and
spirits applications
Elevate quality and
prestige perceptions
among high-end
consumers
Eliminate time and cost
associated with secondary
operations and assembly
Luxury Packaging
GravitechTM Density Modified Polymers
Eliminate costs by
increasing pigment density
Enhance color
performance without
altering form and
formulation
Increase design
capabilities by reducing
weight and layer thickness
Optimize Color Usage
OnColorTM Super Concentrates
Inhibit microbial growth on
polymer surfaces
Enhance value or products
and devices
Highly versatile
concentrate with the
ability to be incorporated
into a wide variety of
products
Combat Bacteria Formation
WithStandTM Antimicrobial Technology
Durable, long-lasting products stand
up to the most aggressive
disinfectants
Minimize environmental stress
cracking and discoloration
One of the broadest medically
approved polymer and colorant
portfolios
Medical Device Housings
Chemically Resistant Engineered Polymers
Color & Design Services
Greater control of color
development and supply chain
Work across entire design
process from concept to
commercialization
Inspire creativity in the use of
polymer materials, colors, and
effects
Innovative brand differentiation
Faster development timelines
Outdoor Applications
Leading provider of high
performance specialty materials
for the recreational and sports &
leisure industry
Well positioned across all
segments to address market needs
Metal to Polymer Conversion
Lightweighting
Thermal Management
Impact Performance
ColorMatrix Fiber Colorant
Solutions
Proprietary advanced liquid color
formulations and equipment
enable greater efficiency and
productivity
Eliminates aqueous dyeing and its
associated wastewater treatment
Solid Color Concentrates
Extrusion-spun fibers colored via
solid masterbatch
Fiber Colorants
High flame retardancy to
meet strict UL standards
Greater processing and
design flexibility
Specialized additives
provide long term color
stability
Diffusive lens materials
improve light dispersion
Smart Home Devices
ResilienceTM Vinyl Solutions
PolyOne investor presentation
Forward Looking Statements
USE OF �NON-GAAP�MEASURES
Vision
Safety First
PolyOne�2017 Revenue | $3.2 billion
Proof of Performance
Sustainable Path to Double-Digit EPS Growth
Investment in Commercial Resources driving growth
The Evolving Customer Relationship
Slide Number 11
New Resources Fueling the Future
Aligning with trends for Growth
Innovation
3 Horizons of Development
Innovation Pipeline
Innovation Spotlight: Composites
Composites Refresher
Strategic Investment History
COMPOSITES in Transportation
Invest-to-Grow M&A Strategy
Invest-to-Grow M&A Playbook
Invest-to-Grow Proof of performance
Invest-to-Grow Driving the future
Strong Pipeline�driven by fragmented Market
Returning cash to shareholders�Over $1 Billion since 2011
ROIC drives shareholder return
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/2022-02/AVNT Q4 2021 Earnings Presentation_0.pdf
Avient’s chief operating decision maker uses these financial measures to monitor and evaluate the ongoing performance of the Company and each business segment and to allocate resources.
Purchase price multiple rapidly declining on strength of
business and synergy capture
10
$133
$205
2019PF 2021
10
Clariant Color EBITDA Growth
Purchase Price Multiple
10.8x
7.0x
6.1x
2019PF 2021 2021 w/ Full
Synergies
(1)
(1)
11.9%
16.2%
2019PF 2021
EBITDA Margins
(1)
CLARIANT COLOR:
TRANSFORMATIONAL ACQUISITION
($ in millions)
(1) Financial information is pro forma to include a full year of Clariant Color business
($ millions)
Initial
Synergy
Estimate
2021
Synergy
Realization
Total
Synergies
Expected
Administrative $ 18 $ 29 $ 40
Sourcing 24 20 24
Operational 18 5 21
Total Synergies $ 60 $ 54 $ 85
C L A R I A N T C O LO R I N T E G R AT I O N &
C O S T S Y N ERG I E S U PDATE
11
• Integration going extremely well: synergy target increased to $85 million at December 9th Investor Day
• Relentless focus on guiding principles of safety first, employee collaboration and exceeding customer expectations
• Future revenue synergies are not part of these estimates and represent additional growth over the long term
S U S TA I NA B I L I T Y F O R A B ET T E R TO M O R ROW
12
• Revenue from sustainable solutions grew
16% in 2021 and expected to grow 8-12% in
2022 as our innovation efforts and
collaboration with customers accelerates
• Investments centered around innovation and
global sustainability megatrends
o Enabling a circular economy –
Technologies that allow for increased use of
post-consumer recycled (PCR) material and
improve recyclability of plastics
o Light-weighting – Composites and CAI
applications to reduce weight and material
requirements, which minimize energy and
carbon emissions
o Eco-Conscious – Health and human safety
applications as well as Avient’s alternative
materials to replace lead, PVC, halogens,
BPA and other less eco-friendly options
12
*Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”)
**2020 is Pro Forma to include full year of the Clariant Color business
12
2016 2017 2018 2019 2020PF** 2021
$405M
$455M
$550M
$790M
Revenue From Sustainable Solutions* 2016-2021
$915M
$340M
PEOPL E
C U L T U R E I S E V E R Y T H I N G
Community Service
7x Safer
than Industry Average
World-Class Safety
Leadership Development
Over $16 million
raised since 2010
Diversity & Inclusion
13
Q4 2020 $997 $80
Sustainable Solutions 23 12% 8
Healthcare 53 43% 9
Composites 7 22% 2
Growth in Asia / LATAM 14 10% 3
Other 118 23% 2
Sub-total $1,212 22% $104
Wage Inflation and Overtime (11)
Other Supply Chain Costs (4)
Synergies 9
Incentives, FX, Other Employee Costs (10) (13)
Q4 2021 $1,202 21% $85
Q4 2021 SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
14
Sales Growth Rate
Adjusted
Operating
Income$ millions
Adjusted
EBITDA
Q4 EBITDA BRIDGE
15
Price increases more than
offsets raw material and
supply chain impacts
Q4 2020 $ 118
Demand -
$ millions
CAI:
Price / Mix 62
Inflation (45)
SEM:
Price / Mix 25
Inflation (20)
Distribution:
Price / Mix 114
Inflation (109)
Net Price Benefit 27
Wage Inflation and Overtime (11)
Other Supply Chain Costs (4)
Synergies 9
Incentives, FX, Other Employee Costs (13)
Q4 2021 $ 126
Transportation (5)$
Outdoor High Performance (3)
Other 8
Total Demand -
Q4 2021 SEGMENT PERFORMANCE
16
CAI
$526
$581
Sales
($ in millions)
SEM Distribution
$58
$61
Operating Income
+ 11% + 6%
$305
$425
Sales
$18
$22
Operating Income
+ 39% + 22%
(1)
$191
$228
Sales
$30
$29
Operating Income
+ 19% - 3%
2 0 2 2 O U T L O O K
REVENUE GROWTH DRIVERS
Growth Drivers
Long-Term
Growth Rate
2022E
Growth Rate
Sustainable Solutions 8–12% 12%
Healthcare 8–10% 10%
Composites 10% 3%
Asia / LATAM 5% 6%
Other (GDP growth) 2–3% 2–3%
Avient 6.5% 6%
18
Excluding Outdoor High Performance 13%
(7.5% excl.
Senior management also uses operating income before
special items to assess performance and allocate resources because senior management believes that these measures are
useful in understanding current profitability levels and how it may serve as a basis for future performance.
https://www.avient.com/sites/default/files/2021-06/avient-ir-presentation-may-2021-w-non-gaap-recs.pdf
Avient’s chief operating decision maker uses these financial measures to monitor and evaluate the ongoing performance of the Company and each business segment and to allocate resources.
Investing in Innovation — Specialty companies invest to grow, so we ensure our
resources are concentrated on material science for high-growth end markets, poised for
value creation in the long term.
Clariant Masterbatch
performance will be included in this year’s report.
2021 Sustainalytics ESG Risk Ranking
Newsweek Most Responsible Companies
2016 2017 2018 2019 2020PF
VOC Reduction Reduced Energy Use Bio-derived Content
Eco-conscious Renewable Energy Applications Recyclability
Reduced Material Requirements Lightweighting
$275M
$325M
$355M
$410M
$560M
9 (1) Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”)(2) 2020 is Pro forma to include full year of the Clariant Masterbatch business
(2)
Revenue from Sustainable Solutions 2016 – 2020
(1)
S U S TA I NA B I L I T Y F O R A B ET T E R TO M O R ROW
10
• Revenue from sustainable solutions expected to grow 11% in
2021 as our innovation efforts and collaboration with customers
continues to accelerate
• Relentless focus on delivering our 2030 sustainability targets to
benefit the planet and people of the world while adding value to
our customers, communities, associates and shareholders
• Investments centered around innovation and global sustainability
megatrends
o Improving Recyclability – Technologies that allow for increased use
of post-consumer recycled (PCR) material
o Light-weighting – Composites and CAI applications to reduce weight
and material requirements, which minimize energy and carbon
emissions
o Eco-Conscious – Health and human safety applications as well as
Avient’s alternative materials to replace lead, PVC, halogens, BPA
and other less eco-friendly options
o Avient CycleWorks – New innovation center dedicated to advancing
recycling and the circular economy through collaboration with
customers and brand owners
Enable 100% of products manufactured for
packaging applications to be recyclable or
reusable.
https://www.avient.com/sites/default/files/2022-11/PCR Color Prediction Service Application Snapshot_Redken.pdf
https://www.avient.com/resource-center/services/avient-color-prediction-tool
https://www.avient.com/sites/default/files/2021-06/avient-design-versaflex-wet-grip-tpe-fishing-tool-grip-case-study-one-pager.pdf
https://www.avient.com/resource-center/services/avient-design
https://www.avient.com/sites/default/files/2023-12/Avient_ResponsibleCarePolicy_Dec_18_2023.pdf
It is the responsibility of every associate at Avient, including contractors, to
understand these commitments and support them through their daily
actions including conformance with our programs and procedures, making
safe decisions and protecting our natural resources.
https://www.avient.com/sites/default/files/2023-03/KyleRose.pdf
He continues to serve as an active mentor and participant in the
company’s sustainability activities, Employee Resource Groups and leadership development
programs.
https://www.avient.com/sites/default/files/2020-12/adventure-sports-brochure.pdf
Make your products look and feel amazing, and
add shelf appeal while you’re at it:
• Offer a more comfortable grip to a typically
hard surface with TPEs from Avient
• Provide an easy process for customization
with TPEs
• Use materials that provide documented vibration
damping and lessen the negative effects of bone-
rattling vibration on the human body
Your customers may get their thrills
from extreme sports like backwoods
snowboarding or a simple family
camping trip.
https://www.avient.com/products/polymer-additives/healthcare-additives/mevopur-healthcare-functional-additives
Human Health & Safety
Resources
Resources
https://www.avient.com/sites/default/files/2021-05/avient-responsible-care-ehs-s-policies-2021.pdf
It is the responsibility of every associate at Avient, including contractors, to
understand these commitments and support them through their daily
actions including conformance with our programs and procedures, making
safe decisions and protecting our natural resources.
We are committed to the continual improvement of environmental
performance, including compliance assurance, natural resource
conservation and pollution prevention.