https://www.avient.com/sites/default/files/resources/POL%2520Credit%2520Suisse%2520IR%2520Presentation%2520w%2520non-GAAP%25209%252017%25202013.pdf
Use of Non-GAAP Measures Page 3 -150.00% -50.00% 50.00% 150.00% 250.00% 350.00% PolyOne S&P 500 Strategy and Execution Drive Results Page 4 All time closing high of $29.48 August 1, 2013 ⢠15 consecutive quarters of double digit EPS growth ⢠42% CAGR adjusted EPS expansion 2006-2012 ⢠YTD stock price has increased 42% versus 20% growth in the S&P ⢠275% increase in market cap: $0.7b $2.6b since 2006 The Worldâs Premier Provider of Specialized Polymer Materials, Services & Solutions Four Pillar Strategy Page 5 PP&S 15% Specialty 60% Distribution 25% 0.12 0.27 0.21 0.13 0.68 0.82 1.00 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* 2015 Target Ad ju st ed E ar ni ng s P er S ha re Appliance 6% Building & Construction 13% Wire & Cable 9% Electrical & Electronics 4% Consumer 9% Packaging 18% Industrial 10% Misc. 5% HealthCare 9% Transportation 16% Textiles 1% United States 70% Europe 14% Canada 8% Asia 5% Latin America 3% 2012 Revenues: $4.0 Billion* End Markets* 2012 Revenues: $4.0 Billion* EPS Page 6 * Pro Forma includes FY2012 results for Spartech (11/03/12 YE) and Glasforms & excludes discontinued operations PolyOne At A Glance * Restated to exclude discontinued operations Old PolyOne Transformation *Operating Income excludes corporate charges and special items **Pro Forma results include Spartech and Glasforms acquisitions, Specialty Coatings reclass and excludes discontinued operations 2% 34% 43% 45% 60% 65- 75% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2012 2012 PF** 2015 % o f O pe ra tin g In co m e* JV's PP&S Distribution Specialty Specialty OI $5M $46M $87M $114M $150M Target Mix Shift Highlights Specialty Transformation 2015 Target Page 7 2006 H1 2013 2015 Where we were Where we are Organic Consolidated Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 12.7% 12.6% 12 â 16% Global Specialty Engineered Materials 1.1% 10.9% 9.2% 12 â 16% Designed Structures & Solutions â â 4.4% 8 â 10% Performance Products & Solutions 5.4% 8.1% 8.2% 9 â 12% Distribution 2.6% 6.1% 6.1% 6 â 7.5% 2) Specialty Platform % of Operating Income 6.0% 62% 65 â 75% 3) ROIC* (after-tax) 5.0% 9.4% 15% 4) Adjusted EPS Growth N/A 26% 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 *Percentage of Specialty Platform revenue from products introduced in last five years 19.5% 46.5% 2006 Q2 2013 $20.3 $44.7 2006 TTM Q2'13 14.3% 31.1% 2006 Q2 2013 Research & Development Spending Specialty Platform Vitality Index Progression* Innovation Drives Earnings Growth ($ millions) Specialty Platform Gross Margin % Page 9 We are Experts in Polymer Science and Formulation ďź Polymer Science ďź Formulation ďź Chemistry ďź Processing Inputs ďź Base Resins ďź Additives ďź Modifiers ďź Colorants Specialized Polymer Materials, Services, and Solutions Expertise Satisfied Consumers PolyOne Customer Innovative Products & Services ďź Marketplace Demands ďź Performance Requirements ďź Value Drivers Page 10 Positioned for Strong Growth 2015 Target Rev: $5B Adj.
EPS: $1.00 $0.54 $0.68 $0.30 $0.45 $0.60 $0.75 H1'12 H1'13 Adjusted EPS $101.0 $132.6 $50.0 $100.0 $150.0 H1'12 H1'13 Adjusted Operating Income (millions) +31% $68.6 $97.7 $50.0 $75.0 $100.0 H1'12 H1'13 Specialty Operating Income (millions) First Half 2013 Financial Highlights ⢠Adjusted EPS increased 26% over prior year first half ⢠Operating Income expanded 31% versus first half 2012 ⢠Specialty operating income up 42% ⢠Revenue grew 22% versus 1H â12 ⢠Portfolio transformation activities ďź Completed acquisition of Spartech ďź Divested non-core Resin business +26% +42% Page 12 ⢠Significant Debt Maturities $ 1,010 Other Debt 21 ⢠Total Debt at 6/30/13 Less: Cash Net Debt ⢠Available Liquidity Cash ABL Availability Total Liquidity ⢠Net Debt / EBITDA = 1.9x ⢠Net Debt / EBITDA = 2.1x*(tax adjusted) $392 310 $702 $1,031 392 $639 $50 $360 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Significant Debt Maturities As of June 30, 2013 ($ millions) Page 13 Coupon Rates: 7.500% 7.375% 5.250% *Pro Forma TTM for taxes on resin gain Debt Maturities & Liquidity Summary â 6/30/13 Cash Balance = $392M Net Debt / EBITDA* = 1.9x ⢠Repurchased ~3.0M shares YTD in 2013 ⢠17 million shares are available for repurchase under the current authorization Share Repurchase ⢠Introduced a quarterly dividend in Q1 2011 and increased in Q1 2012 (25%) and Q1 2013 (20%) ⢠Objective of maintaining and growing Dividends ⢠Expanding our sales, marketing, and technical capabilities is top priority ⢠Investing in operational and LSS initiatives (including synergy capture) ⢠CAPEX Organic Growth ⢠Targets that expand our: ⢠Specialty offering ⢠End market presence ⢠Geographic footprint ⢠Synergy opportunities ⢠Adjacent material solutions ⢠North American manufacturing alignment Acquisitions *TTM 6/30/2013 Use of Cash Page 14 Why Invest In PolyOne?
https://www.avient.com/sites/default/files/resources/PolyOne%2520Investor%2520Presentation%2520Jefferies%25202013%2520Global%2520Industrial%2520Conference_Posting.pdf
Use of Non GAAP Measures Page 3 -150.00% -50.00% 50.00% 150.00% 250.00% 350.00% PolyOne S&P 500 Strategy and Execution Drive Results Page 4 All time closing high of $29.48 August 1, 2013 ⢠15 consecutive quarters of double digit EPS growth ⢠42% CAGR adjusted EPS expansion 2006-2012 ⢠YTD stock price has increased 42% versus 20% growth in the S&P 400% increase in market cap, from $0.7b to $2.8b since 2006 The Worldâs Premier Provider of Specialized Polymer Materials, Services & Solutions Four Pillar Strategy Page 5 PP&S 15% Specialty 60% Distribution 25% 0.12 0.27 0.21 0.13 0.68 0.82 1.00 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* 2015 Target Ad ju st ed E ar ni ng s P er S ha re Appliance 6% Building & Construction 13% Wire & Cable 9% Electrical & Electronics 4% Consumer 9% Packaging 18% Industrial 10% Misc. 5% HealthCare 9% Transportation 16% Textiles 1% United States 70% Europe 14% Canada 8% Asia 5% Latin America 3% 2012 Revenues: $4.0 Billion* End Markets* 2012 Revenues: $4.0 Billion* EPS Page 6 * Pro Forma includes FY2012 results for Spartech (11/03/12 YE) and Glasforms & excludes discontinued operations PolyOne At A Glance * Restated to exclude discontinued operations Old PolyOne Transformation *Operating Income excludes corporate charges and special items **Pro Forma results include Spartech and Glasforms acquisitions, Specialty Coatings reclass and excludes discontinued operations 2% 34% 43% 45% 60% 62% 65- 75% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2012 2012 PF** H1'13 2015 % o f O pe ra tin g In co m e* JV's PP&S Distribution Specialty Specialty OI $5M $46M $87M $114M $150M $98M Target Mix Shift Highlights Specialty Transformation 2015 Target Page 7 2006 H1 2013 2015 Where we were Where we are Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 12.6% 12 â 16% Global Specialty Engineered Materials 1.1% 9.2% 12 â 16% Designed Structures & Solutions -- 4.4% 8 â 10% Performance Products & Solutions 5.4% 8.3% 9 â 12% Distribution 2.6% 6.1% 6 â 7.5% 2) Specialty Platform % of Operating Income 6.0% 62% 65 â 75% 3) ROIC* (after-tax) 5.0% 9.4% 15% 4) Adjusted EPS Growth N/A 26% 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 *Percentage of Specialty Platform revenue from products introduced in last five years 11.5% 46.5% 2006 Q2 2013 $20.3 $44.7 2006 TTM Q2'13 14.3% 31.1% 2006 Q2 2013 Research & Development Spending Specialty Platform Vitality Index Progression* Innovation Drives Earnings Growth ($ millions) Specialty Platform Gross Margin % Page 9 We are Experts in Polymer Science and Formulation ďź Polymer Science ďź Formulation ďź Chemistry ďź Processing Inputs ďź Base Resins ďź Additives ďź Modifiers ďź Colorants Specialized Polymer Materials, Services, and Solutions Expertise Satisfied Consumers PolyOne Customer Innovative Products & Services ďź Marketplace Demands ďź Performance Requirements ďź Value Drivers Page 10 Positioned for Strong Growth 2015 Target Rev: $5B Adj.
EPS: $1.00 $0.54 $0.68 $0.30 $0.45 $0.60 $0.75 H1'12 H1'13 Adjusted EPS $101.0 $132.6 $50.0 $100.0 $150.0 H1'12 H1'13 Adjusted Operating Income (millions) +31% $68.8 $97.7 $50.0 $75.0 $100.0 H1'12 H1'13 Specialty Operating Income (millions) First Half 2013 Financial Highlights ⢠Adjusted EPS increased 26% over prior year first half ⢠Operating Income expanded 31% versus first half 2012 ⢠Specialty operating income up 42% ⢠Revenue grew 22% versus 1H â12 ⢠Portfolio transformation activities ďź Completed acquisition of Spartech ďź Divested non-core Resin business +26% +42% Page 12 ⢠Significant Debt Maturities $ 1,010 Other Debt 21 ⢠Total Debt at 6/30/13 Less: Cash Net Debt ⢠Available Liquidity Cash ABL Availability Total Liquidity ⢠Net Debt / EBITDA = 1.9x* ⢠Net Debt / EBITDA = 2.1x*(tax adjusted) $392 310 $702 $1,031 392 $639 $50 $360 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Significant Debt Maturities As of June 30, 2013 ($ millions) Page 13 Coupon Rates: 7.500% 7.375% 5.250% *Pro Forma TTM Debt Maturities & Liquidity Summary â 6/30/13 Cash Balance = $392M Net Debt / EBITDA* = 1.9x ⢠Repurchased ~3.0M shares YTD in 2013 ⢠17 million shares are available for repurchase under the current authorization Share Repurchase ⢠Introduced a quarterly dividend in Q1 2011 and increased in Q1 2012 (25%) and Q1 2013 (20%) ⢠Objective of maintaining and growing Dividends ⢠Expanding our sales, marketing, and technical capabilities is top priority ⢠Investing in operational and LSS initiatives (including synergy capture) ⢠CAPEX Organic Growth ⢠Targets that expand our: ⢠Specialty offering ⢠End market presence ⢠Geographic footprint ⢠Synergy opportunities ⢠Adjacent material solutions ⢠North American manufacturing alignment Acquisitions *TTM 6/30/2013 Use of Cash Page 14 Why Invest In PolyOne?
https://www.avient.com/sites/default/files/2023-11/AVNT November IR Presentation.pdf
Pro Forma Financial Information The Company acquired Avient Protective Materials (âDyneemaâ) on September 1, 2022 (the âAcquisition Dateâ) and sold the Distribution segment on November 1, 2022.
To provide comparable results, the company references âpro formaâ 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.
Avient reflects 2023 adjusted EBITDA guidance of $500M and estimated run-rate CAPEX of $110M. 2023E (%) 27 78 89 84 82 80 77 88 81 76 70 69 60 54 (6) Av ie nt KW R FU L PP G AV Y R PM FM C C E EC L AS H H XL H U N EM N SC L Avient Specialty Formulators Other Specialty / Chemical Companies MULTIPLE EXPANSION Source: Peer data per Bloomberg as of October 27, 2023 Note: Avient reflects 2023 adjusted EBITDA guidance of $500M and closing share price of $31.18.
https://www.avient.com/investor-center/news/polyone-begin-thermoplastic-elastomer-production-india
enables manufacturers to source all of their specialty polymer requirements from a single domestic source.
SOURCE
Rose, Vice President, Corporate Communications, PolyOne Corporation, +1 440-930-3162, kyle.rose@avient.com
https://www.avient.com/news/revolve-tactical-tripod-rolatube-stands-out-competition-polystrand-composites-avient
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Revolve⢠Tactical Tripod from Rolatube Stands Out from the Competition with Polystrand⢠Composites from Avient
https://www.avient.com/company/sustainability/sustainability-report/preserving-planet/protecting-environment
Reducing consumption from non-renewable energy sources is a key part of Avientâs path to carbon neutrality by 2050.
We set an interim 2030 goal to attain 60% of our electricity from renewable sources.
In 2023, we met this goal reaching 62% electricity being from renewable sources by leveraging virtual power purchase agreements among other sourcing initiatives.
https://www.avient.com/industries/industrial/agriculture-construction/agriculture-construction-interiors
Field equipment must be able to stand up to the harshest environments, both on the outside and the inside.
Durable sheeting that stands up to the elements
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520RW%2520Baird%2520Global%2520Industrial%2520Conference.pdf
Use of Non-GAAP Measures 4POLYONE CORPORATION INPUTS FORMULATION EXPERTISE SERVICE VALUE Base resins Additives Modifiers Pigments Expertise in Polymer Materials, Services and Solutions OEMs Brand Owners Processers Assemblers InVisiO SM Color Services IQ Design Labs LSS Customer First Specialty products & services What We Do Driving customer value 5POLYONE CORPORATION $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.06 2009 2010 2011 2012 2013 2014 2015 2016* *Recast for DSS in discontinued operations PolyOne At a Glance Performance Products & Solutions 22% PolyOne Distribution 34% Specialty Engineered Materials 18% Color Additives and Inks 26% 2016 Revenue by Segment Adjusted Earnings per Share 2016 Revenue by Geography United States 60% Europe 15% Latin America 9% Canada 7% Asia 10% 6POLYONE CORPORATION 2% 43% 76% 0% 20% 40% 60% 80% 100% 2005 2010 3Q 2017 % o f O p e ra ti n g I n c o m e * *Operating Income excludes corporate charges and special items **LTM 3Q 2017 Specialty OI $5M $87M $275M** JVâs Performance Products & Solutions Specialty MixDistribution Mix Shift Highlights Specialty Transformation Distribution and Contract Manufacturing Businesses 7POLYONE CORPORATION 2014 2015 2016 2017 2014 2015 2016 2017 Driving Growth ⢠Refreshed training curriculum for sales force ⢠Upgraded capabilities to generate and capture new business leads ⢠Expanded R&D resources to focus on key platforms 2014 2015 2016 2017 Investment in Commercial Resources Commercial Resource Additions* Total Sales CallsSales Opportunity Funnel (in billions) *Sales, Marketing & Technology headcount 8POLYONE CORPORATION *ROIC is defined as TTM adjusted OI after tax divided by the sum of average debt and equity less cash over a 5 quarter period Proof of Performance & 2020 Platinum Vision 20%+ 20%+ 12 - 14% 6.5 â 7.5% 15% Consistently Deliver Double Digit Annual EPS Growth 2006 YTD 2017 2020 âWhere we wereâ âWhere we areâ Platinum Vision ROIC* 5.0% 13.8% Operating Income % of Sales Color, Additives & Inks 1.7% 16.4% Specialty Engineered Materials 1.1% 13.1% Performance Products & Solutions 5.5% 11.4% Distribution 2.6% 6.6% 9POLYONE CORPORATION $50 $116 $137 $0 $40 $80 $120 $160 $200 2012 2014 2016 2017 10.8% 11.3% 12.9% 13.8% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 2012 2014 2016 3Q 2017 2020 Platinum Vision Free Cash Flow (in millions) ROIC* *ROIC is defined as TTM adjusted OI after tax divided by the sum of average debt and equity less cash over a 5 quarter period Free Cash Flow and Improving Returns 15.0% >$200 10POLYONE CORPORATION $0.16 $0.20 $0.24 $0.32 $0.40 $0.48 $0.54 $0.70 $- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Annual Dividend 7 Consecutive Years of Increased Dividends 3-Year Dividend Plan ď§ Announced 30% increase to dividend in October 2017, reflecting strong and sustainable cash flow as well as confidence in future earnings growth ď§ Expect to increase annual dividend 60% or more cumulatively over next three years 11POLYONE CORPORATION $767M Returning Cash to Shareholders $0 $150 $300 $450 $600 $750 2011 2012 2013 2014 2015 2016 3Q 2017 Cumulative Share Repurchases (in millions) ď§ Since 2011, we have returned over $950 million to shareholders ď§ $192 million returned through dividends ď§ $767 million returned through share repurchases ď§ Have repurchased 20.8 million shares since early 2013 $767M 12POLYONE CORPORATION ď§ Expanding our sales, marketing, and technical capabilities ď§ Investing in operational and LSS initiatives ď§ ~60 - 70% of capital expenditures fund growth initiatives Organic Growth Acquisitions Share Repurchases Dividends ď§ Targets that expand our: ⢠Specialty offerings ⢠End market presence ⢠Geographic breadth ď§ Growth synergies ď§ Adjacent material solutions ď§ Repurchased 2.0 million shares YTD 2017 ď§ Repurchased 20.8 million shares since early 2013 ď§ 6.5 million shares are available for repurchase under the current authorization ď§ Increased annual dividend by 30% to $0.70 per share, representing the seventh consecutive year of dividend growth Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return 13POLYONE CORPORATION *Specialty Platform revenue from products introduced in last five years Vitality Index Progression* 12% 42% 2006 2016 Target ⼠35% Innovation Drives Earnings Growth Innovation Pipeline Potential $20 $54 2006 2016 Research & Development Spending ($ millions) Phase 1 Frame Opportunity 12 Projects Phase 2 Build Business Case 10 Projects Phase 3 Prototype 21 Projects Phase 4 Scale-up & Test Market 19 Projects Phase 5 Commercial Launch 10 Projects $500 Million $1.4 Billion $700 Million Total Specialty Addressable Market of over $2.6 Billion 14POLYONE CORPORATION Key Innovation Growth Drivers Composites Barrier Additive Technology Fiber Colorants Flame Retardant Polymers ď§ Increasing regulatory drive for halogen replacements ď§ $400m addressable market ď§ Drive to prevent oxygen, light and UV rays from affecting contents in PET packaging, extending shelf life ď§ $200m addressable market ď§ 60% of world fiber consumption is synthetic, need to simplify manufacturing and eliminate waste ď§ $300m addressable market ď§ Polymer formulation and process engineering create a pipeline for next generation materials ď§ Drive to replace aluminum and steel with plastics without compromising on strength 15POLYONE CORPORATION ď§ Providing LSS services to small/medium sized customers ď§ 54% of associates trained in LSS, with over 125 active black belts ď§ Have trained over 30 customers in LSS methodology ď§ Providing training in Customer Centric Selling Skills with customers ď§ Providing Industrial design and color services to small/medium sized customers ď§ On time delivery above 95% Strengthening relationships: Customer First Through World-Class Service 16POLYONE CORPORATION ď§ Addressable market exceeds $40 billion ď§ Strong performance demonstrates that our strategy and execution are working ď§ Megatrends and emerging opportunities align with strengths ď§ Innovation and services provide differentiation, incremental pricing power and competitive advantage ď§ Strategic reinvestment for growth while returning cash to shareholders ď§ Strong and proven management team driving growth and performance Why Invest In PolyOne?
The New PolyOne: A Specialty Growth Company 17POLYONE CORPORATION Segment Highlights 18POLYONE CORPORATION 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 14.7% 16.7% 16.0% 20%+ 16.4% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 2017 2020 Operating Income % of Sales 2016 Revenue: $0.8 Billion Key End Markets (% of revenue) United States 45% Europe 33% Asia 15% Latin America 5% Canada 2% Platinum Vision At a Glance Color, Additives & Inks Packaging (30%) Industrial (15%) Wire & Cable (10%) Textiles (9%) Transportation (9%) 19POLYONE CORPORATION 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 12.1% 14.7% 14.3% 20%+ 13.1% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 2017 2020 Operating Income % of Sales Platinum Vision At a Glance Specialty Engineered Materials 2016 Revenue: $0.6 Billion United States 51% Europe 27% Asia 20% Canada 2% Key End Markets (% of revenue) Consumer (19%) Transportation (19%) Electrical & Electronics (15%) Wire & Cable (15%) Healthcare (11%) 20POLYONE CORPORATION 5.5% 6.9% 3.8% 3.6% 5.5% 4.3% 6.3% 7.2% 7.7% 8.3% 12-14% 11.4% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 2017 2020 Operating Income % of Sales 11.1% At a Glance Performance Products & Solutions 2016 Revenue: $0.7 Billion United States 78% Canada 16% Latin America 4% Asia 2% Platinum Vision Key End Markets (% of revenue) Building & Construction (30%) Transportation (18%) Wire & Cable (16%) Industrial (16%) 21POLYONE CORPORATION 4% 36% 2006 2016 At a Glance Distribution 2016 Revenue: $1.1 Billion Key Suppliers ROIC Transportation 24% Healthcare 22% Industrial 18% Consumer 15% Appliance 6% E & E 5% B & C 4% Packaging 4% W & C 2% 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% 6.4% 5.9% 6.1% 6.6% 6.5 - 7.5% 6.4% 6.6% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 2017 2020 Operating Income % of Sales *After-Tax ROIC http://www.polyone.com/Pages/VariationRoot.aspx http://www.polyone.com/Pages/VariationRoot.aspx 22POLYONE CORPORATION Target End Markets & Application Examples 23POLYONE CORPORATION Target End Markets⌠Healthcare Thermally Conductive Technologies Chemical Resistant Technologies Polymer Colorants Elastomeric Grips and Handles Structural Composites Antimicrobial Technologies Anti-Counterfeiting Technologies 24POLYONE CORPORATION Under-hood Components Target End Markets⌠Automotive Interior Structural Components Sound & Vibration Management Roof Systems Air Management Electronics and Cameras Lighting Fluid Handling Interior Trim Exterior Trim Braces & Brackets Fasteners Seals & Flaps 25POLYONE CORPORATION Target End Markets⌠Packaging Oxygen Scavenger Technologies Laser Marking Additives Antistatic Technologies UV Light Barrier Technologies Cap & Closure Colorants Process Optimization Technologies Antioxident Technologies Density Modified Technologies 26POLYONE CORPORATION Target End Markets⌠Consumer Thermally Conductive Components Polymer Colorants Elastomeric Grips and Handles Structural Composite Components 27POLYONE CORPORATION ď§ Impart weight, sound and metallic finish to caps and closures for cosmetics and spirits applications ď§ Elevate quality and prestige perceptions among high-end consumers ď§ Eliminate time and cost associated with secondary operations and assembly Luxury Packaging GravitechTM Density Modified Polymers 28POLYONE CORPORATION Optimize Color Usage OnColorTM Super Concentrates ď§ Eliminate costs by increasing pigment density ď§ Enhance color performance without altering form and formulation ď§ Increasing design capabilities by reducing weight and layer thickness 29POLYONE CORPORATION Combat Bacteria Formation WithStandTM Antimicrobial Technology ď§ Inhibit microbial growth on polymer surfaces ď§ Enhance value or products and devices ď§ Highly versatile concentrate with the ability to be incorporated into a wide variety of products 30POLYONE CORPORATION Medical Device Housings Chemically Resistant Engineered Polymers ď§ Durable, long-lasting products stand up to the most aggressive disinfectants ď§ Minimize environmental stress cracking and discoloration ď§ One of the broadest medically approved polymer and colorant portfolios 31POLYONE CORPORATION Color & Design Services ď§ Greater control of color development and supply chain ď§ Work across entire design process from concept to commercialization ď§ Inspire creativity in the use of polymer materials, colors, and effects ď§ Innovative brand differentiation ď§ Faster development timelines 32POLYONE CORPORATION Outdoor Applications ď§ Leading provider of high performance specialty materials for the recreational and sports & leisure industry ď§ Well positioned across all segments to address market needs ďź Metal to Polymer Conversion ďź Lightweighting ďź Thermal Management ďź Impact Performance 33POLYONE CORPORATION ď§ ColorMatrix Fiber Colorant Solutions ďź Proprietary advanced liquid color formulations and equipment enable greater efficiency and productivity ďź Eliminates aqueous dyeing and its associated wastewater treatment ď§ Solid Color Concentrates ďź Extrusion-spun fibers colored via solid masterbatch Fiber Colorants 34POLYONE CORPORATION Smart Home Devices ResilienceTM Vinyl Solutions ď§ High flame retardancy to meet strict UL standards ď§ Greater processing and design flexibility ď§ Specialized additives provide long term color stability ď§ Diffusive lens materials improve light dispersion 1 Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to PolyOne common shareholders, adjusted earnings per share (EPS) attributable to PolyOne common shareholders and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to assess performance and allocate resources because senior management believes that these measures are useful in understanding current profitability levels and that current levels may serve as a base for future performance.
Adjusted EPS attributable to PolyOne common shareholders is calculated as follows: 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 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 Joint venture equity earnings, after tax (19.0) (14.7) (3.7) â â â â â Special items, before tax(1) (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 23.8 Special items, tax adjustments(1) (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (15.9) 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 Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 Adjusted EPS attributable to PolyOne common shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.06 * 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. (1) Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel reduction programs, plant realignment costs, executive separation agreements; asset impairments; mark-to-market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non-recurring items; the effect of changes in accounting principles or other such laws or provisions affecting reported results and tax adjustments.
https://www.avient.com/resource-center/knowledge-base/article/four-ways-intensify-road-consumer-experience
Boost durability for a vehicle that will stand up to the roughest rides:
Corrosion-resistant thermoset and thermoplastic composites stand up to the harshest environments without the need for paint or rustproofing
https://www.avient.com/sites/default/files/2020-08/avient-investor-presentation-jefferies-industrials-conference.pdf
Avient Corporation 1 JEFFERIES VIRTUAL INDUSTRIALS CONFERENCE A U G U S T 2 0 2 0 Avient Corporation 2 FORWARD LOOKING STATEMENTS ⢠⢠⢠⢠⢠⢠⢠⢠⢠⢠⢠⢠⢠⢠⢠⢠⢠⢠⢠⢠Avient Corporation 3 USE OF NON-GAAP MEASURES ⢠⢠⢠Avient Corporation 4 UPDATE ON THE COVID-19 PANDEMIC ⢠⢠⢠⢠Avient Corporation 5 2019 Transportation Consumer Discretionary Healthcare Packaging All Other Industries Cost Containment FX 2020 $64.3 18% 18% 9% 6% 16% 2% $46.9 20% ⢠⢠⢠⢠⢠⢠SECOND QUARTER 2020 IN REVIEW Consumer Discretionary Avient Corporation 6 CLARIANT MASTERBATCH STRATEGIC RATIONALE Avient Corporation 7 FIT W I T H FOUR PILLAR S T R A T E G Y Specialization ⢠⢠⢠Globalization ⢠⢠Operational Excellence ⢠⢠⢠Commercial Excellence ⢠⢠People Avient Corporation 8 5% 2006 2019E PF* 4% 12% 10% 18% 8% 20% 2006 2019E PF* Healthcare Consumer Packaging 38% * 2019E Pro Forma for PP&S Divestiture and Clariant Masterbatch business Percentage of Total Revenue E N D M A R K E T T R A N S F O R M A T I O N Building & Construction High Growth End Markets 50% 22% Avient Corporation 9 Wire & Cable 11% Industrial 10% Electrical & Electronic 7% Healthcare 4% Packaging 8% Consumer 10% Transportation 12% Building & Construction 38% Healthcare 12% Packaging 20% Consumer 18%Transportation 12% Building & Constrution 5% Wire & Cable 9% Industrial 11% Electrial & Electronic 4% Appliance 2% Textiles 7% 2006 Pro Forma(1) Net Sales by End Market E N D M A R K E T T R A N S F O R M A T I O N Avient Corporation 10 U N I F I E D F O C U S O N S U S T A I N A B I L I T Y 2006 - 2013 2013 â 2019 PEOPLE PROD UC TS PLANET PER FOR M A NC E â˘â˘ â˘â˘ â˘â˘ Avient Corporation 11 O V E R 8 5 % O F A D J U S T E D E B I T D A F R O M S P E C I A L T Y 46% 66% 0% 20% 40% 60% 80% 100% 2005 2010 2015 Pro Forma % o f A d ju s te d E B IT D A ( 1) JVs Performance Products & Solutions Distribution Specialty 7% 87% (2) Avient Corporation 12 T H E N E W A V I E N T : A S P E C I A L T Y G R O W T H C O M P A N Y ď§ ď§ ď§ ď§ Transaction expected to add $0.85 to pro forma adjusted EPS Avient Corporation 13 SUSTAINABILITY AT AVIENT 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 Avient Corporation 13 Avient Corporation 14 V I S I O N To be the worldâs 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 worldâs premier provider of specialized polymer materials, services and sustainable solutions Avient Corporation 15 1.3 1.1 1.1 0.85 0.65 0.57 0.54 0.97 0.84 0.74 0.74 0.69 0.51 0.56 0.14 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD S A F E T Y F I R S T Injuries per 100 Workers Spartech Acquisition Avient Corporation 16 G R E A T P L A C E T O W O R K Avient Corporation 17 C O M M O D I T Y T O S P E C I A L T Y T R A N S F O R M A T I O N ⢠⢠⢠⢠⢠⢠⢠⢠⢠⢠⢠⢠2006 - 2013 2013 â 20192000-2005 2006 - 2013 ⢠⢠2020 and Beyond Avient Corporation 18 A V I E N T 2 0 1 9 R E V E N U E | $ 2 . 9 B I L L I O N Segment End Market Geography Healthcare 15% Industrial 14% Consumer 14% Packaging 13% Transportation 13% Wire & Cable 11% Building & Construction 6% Electrical & Electronics 6% Textiles 5% Appliance 3% Color Additives & Inks 34% Distribution 41% Specialty Engineered Materials 25% United States 54% Europe 19% Asia 11% Latin America 11% Canada 5% Avient Corporation 19 Operating Income % of Sales 2006 2019 Color, Additives & Inks 1.7% 14.7% Specialty Engineered Materials 1.1% 11.6% Distribution 2.6% 6.3% 2009 2010 2011 2012 2013 2014 2015 2016*2017* 2018 $2.43 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 10 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.06 $2.21 A D J U S T E D E P S E X P A N S I O N 2018 2019 $1.69 $1.51 Avient Corporation 20 531 710 1,032 130 164 207 504 663 871 2014 2018 Pro Forma R&D / Technical Marketing Sales + 34% + 26% + 32% E X P A N S I O N O F COMMERCIAL RESOURCES D R I V I N G G R O W T H Revenue in Billions Total + 10% Organic + 7%+ 45% + 26% + 31% $4.0 $3.2 (2) (1) (1) $2.9 $2.9 $3.5 2015 2016 2017 2018 Pro Forma Total + 9% Organic + 5% Pro Forma(2) Avient Corporation 21 P R I O R A C Q U I S I T I O N S H I S T O R Y Commercial Resources(1) Operating Income ($ in millions) Operating Margins 256 350 At Acquisition 2019 $36 $100 At Acquisition 2019 9% 19% At Acquisition 2019 Established Acquisitions (> 7 years) + 37% + 176% + 1000 bps Avient Corporation 22 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 Facilitate alternative energy solutions Light- weighting Reduce packaging materials Improve recyclability Reduce spread of infection Avient Corporation 23 I N N O V A T I O N Customization 55% M&A 30% Innovation Pipeline 15% Innovation comes from Research & Development Spend Vitality Index 12% 37% 2006 2019 $20 $51 2006 2019 Avient Corporation 24 R E V E N U E F R O M S U S T A I N A B L E S O L U T I O N S $275M $325M $355M $410M 14% Total Annual Growth 9% Organic Annual Growth Avient Corporation 25 SEGMENT HIGHLIGHTS I N N O V A T I N G W I T H A V I E N T Avient Corporation 25 Avient Corporation 26 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 Solid Colorants Performance Additives Screen Printing Inks Liquid Colorants Packaging 31% Industrial 14% Textiles 13% Wire & Cable 10% Building & Construction 9% Consumer 8% Transportation 7% Healthcare 5% Appliances 2% Electrical & Electronics 1% Avient Corporation 26 Avient Corporation 27 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 9 R E V E N U E | O V E R $ 1 B I L L I O N Europe 34% United States 44% Asia 15% Canada 1% Mexico 3% South America 3% $4 $25 $104 $147 2005 2009 2013 2019 0.9% 5.5% 12.2% 14.7% Avient Corporation 27 Avient Corporation 28 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 Engineered Formulations Advanced Composites Thermoplastic Elastomers Wire & Cable* 28% Consumer 19% Electrical & Electronics 12% Healthcare 9% Industrial 8% Packaging 6% Appliance 2% Building & Construction 2% Transportation 14% Avient Corporation 28 Avient Corporation 29 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 9 R E V E N U E | $ 7 5 0 M I L L I O N Europe 27% United States 54% Asia 17% Canada 2% $21 $57 $87 2005 2009 2013 2019 0.1% 5.1% 9.3% 11.6% Avient Corporation 29 Avient Corporation 30 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 Healthcare 28% Industrial 19% Transportation 18% Consumer 17% Appliance 6% Electrical & Electronics 5% Building & Construction 4% Packaging 2% Wire & Cable 1% Operating Income & Margin2019 Revenue | $1.2 Billion $25 $63 $75 2005 2009 2013 2019 $20 2.9% 4.0% 5.9% 6.3% Avient Corporation 30 http://www.polyone.com/Pages/VariationRoot.aspx Avient Corporation 31 O V E R V I E W O F R A W M A T E R I A L P U R C H A S E S Avient Corporation 31 Avient Corporation 32 Avient Corporation 33 Adjusted EPS attributable to PolyOne common shareholders is calculated as follows: 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016** 2017** 2018 2018*** Q1 2019*** 2019 Q1 2020 Net income from continuing operations attributable to PolyOne common shareholders Joint venture equity earnings, after tax Special items, before tax (1) Special items, tax adjustments (1) Adjusted 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 $ 161.1 $ 87.7 $ 22.4 $ 75.5 $ 33.1 (19.0) (14.7) (3.7) â â â â â â â â â â â (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 23.8 32.9 59.5 58.7 12.2 61.7 9.6 (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (15.9) (24.8) (25.3) (25.1) (1.2) (5.9) (1.0) $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 174.3 $ 181.6 $ 195.3 $ 121.3 $ 33.4 $ 131.3 $ 41.7 Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1 80.4 80.4 78.2 77.7 86.7 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 $ 2.43 $ 1.51 $ 0.43 $ 1.69 $ 0.48 * 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. ** Pro forma for sale of Designed Structures and Solutions segment (DSS). *** Pro forma for sale of Performance Products and Solutions segment (PP&S).
Adjusted EPS attributable to Avient common shareholders is calculated as follows: 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016** 2017** 2018 2018*** 2019 Q2 2020 Net income from continuing operations attributable to Avient common shareholders $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6 $ 166.4 $ 173.5 $ 161.1 $ 87.7 $ 75.5 $ 23.0 Joint venture equity earnings, after tax (19.0) (14.7) (3.7) â â â â â â â â â â Special items, before tax(1) (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 23.8 32.9 59.5 58.7 61.7 2.4 Special items, tax adjustments(1) (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (15.9) (24.8) (25.3) (25.1) (5.9) 0.2 Adjusted net income from continuing operations attributable to Avient common shareholders $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 174.3 $ 181.6 $ 195.3 $ 121.3 $ 131.3 $ 25.6 Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1 80.4 80.4 77.7 91.8 Adjusted EPS attributable to Avient common shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.06 $ 2.21 $ 2.43 $ 1.51 $ 1.69 $ 0.28 * 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. ** Pro forma for sale of Designed Structures and Solutions segment (DSS). *** Pro forma for sale of Performance Products and Solutions segment (PP&S).
Reconciliation to Adjusted EPS Excluding Special Items and Impacts of February 2020 Equity Offering and May 2020 Debt Offering Three Months Ended June 30, 2020 Net income from continuing operations attributable to Avient common shareholders $ 23.0 Special items, after tax(1) 2.6 After tax interest expense, net arising from equity offering and debt offering proceeds 4.1 Adjusted net income excluding special items and impact of interest expense, net arising from equity offering and debt offering proceeds $ 29.7 Diluted weighted-average shares used to compute earnings per common share 91.8 Weighted-average impact of 15.3 million shares issued in February 2020 equity offering (15.3) Diluted weighted-average shares excluding impact of shares issued in February 2020 equity offering 76.5 Adjusted EPS excluding special items and impact of equity offering and debt offering $ 0.39 (1) Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; costs incurred directly in relation to acquisitions or divestitures, including adjustments related to contingent consideration; employee separation costs resulting from personnel reduction programs, plant realignment costs, executive separation agreements; asset impairments; settlement gains or losses and mark-to-market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non- recurring items; and the effect of changes in accounting principles or other such laws or provisions affecting reported results.