https://www.avient.com/products/long-fiber-technology
Agility is one of our defining cultural characteristics; our team is used to working on fast-paced timelines while always remaining committed to obtaining our success by ensuring our partners succeed.
In 2018 PlastiComp became a part of Avient Corporation to expand the reach for our unique materials and business methodology.
An Extension of your Product Development Team
https://www.avient.com/knowledge-base/case-study/brooks-running-sets-pace-growth
The Brooks design team knew it was up to the challenge, and they were confident they could create a breakthrough running shoe.
The Brooks design team members turned to Avient for help developing a solution that would work seamlessly with Brooks’ proprietary TPE blend used in the shoe's midsoles.
Working together, teams from both companies created a customized TPE material that matched the performance of the Brooks TPE blend.
https://www.avient.com/sites/default/files/resources/Innovation%2520Day%2520-%2520May%25202014.pdf
Kahler Senior Vice President
Chief Commercial Officer
Dr.
Patterson
12:00-1:00 PM Lunch
PolyOne Corporation Page 7
PolyOne Commodity to Specialty
Transformation
• Volume driven,
commodity
producer
• Heavily tied to
cyclical end
markets
• Performance largely
dependent on non-
controlling joint
ventures
2000-2005 2006 - 2009 2010 – 2014
2015 and
beyond
• 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
• 18 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
• Continue specialty
transformation
• Targeting $2.50
adjusted EPS by
2015, nearly double
2013 EPS
• Drive double digit
operating income
and adjusted EPS
growth
PolyOne Corporation Page 8
Specialty
54%
PP&S
Distribution
28%
2013 Revenues: $3.8 Billion 2013 Revenues: $3.8 Billion
United
States
67%
Latin
America
$13
$31
$46 $46
$92 $96
$122
$195
$0
$50
$100
$150
$200
2006 2007 2008 2009 2010 2011 2012 2013
End Markets Specialty Operating Income
PolyOne At a Glance
Building &
9%
HealthCare
11% Appliance
Electronics &
Electrical
PolyOne Corporation Page 9
Old
PolyOne Transformation
*Operating Income excludes corporate charges and special items
2%
34%
43%
62% 64%
0%
20%
40%
60%
80%
100%
2005 2008 2010 2013 Q1 2014 2015
%
o
f
O
p
e
ra
ti
n
g
I
n
c
o
m
e
*
JV's Performance Products & Solutions Distribution Specialty
65-75%
Specialty OI $5M $46M $87M $195M $60M Target
Mix Shift Highlights Specialty Transformation
2015
Target
PolyOne Corporation Page 10
Confirmation of Our Strategy
The World’s Premier Provider of Specialized
Polymer Materials, Services and Solutions
Specialization Globalization
Operational
Excellence
Commercial
Excellence
PolyOne Corporation Page 11
-150.00%
-50.00%
50.00%
150.00%
250.00%
350.00%
450.00%
550.00%
PolyOne S&P 500
Strategy and Execution Drive Results
$0.12
$0.27
$0.21
$0.13
$0.68
$0.82
$1.00
$1.31
'06 '07 '08 '09 '10 '11 '12 '13
‘06-‘13 EPS CAGR = 41%
EPS Share Price vs.
Richardson
Executive Vice President, Chief Financial Officer
PolyOne Corporation Page 15
Track Record of Accelerated Growth
Total Revenue Adjusted EPS Adjusted EBITDA
$2,061
$2,506
$2,709
$2,861
$3,771
2009 2010 2011 2012 2013
($ in millions, except EPS )
$105
$179
$202
$255
$344
2009 2010 2011 2012 2013
$0.13
$0.68
$0.82
$1.00
$1.31
2009 2010 2011 2012 2013
PolyOne Corporation Page 16
$0.31
$0.44
$0.20
$0.30
$0.40
Q1 2013 Q1 2014
Adjusted EPS
$42
$60
$20
$40
$60
Q1 2013 Q1 2014
Specialty Operating Income
($ millions)
Q1 2014 Financial Highlights
Growth momentum accelerates
driven by specialty platform
Specialty segments and
Distribution achieve record results
All segments increase operating
income compared to prior year
Revenue grew 25% versus
Q1 2013
+43%
+42%
$57
$79
$30
$60
$90
Q1 2013 Q1 2014
Adjusted Operating Income
($ millions)
+39%
PolyOne Corporation Page 17
Commitment to Operational Excellence
81%
96%
2006 2013
16.2%
10.9%
2006 2013
On-Time Delivery
Working Capital % of Sales
5.0%
31.0%
2006 2013
Percent of Associates Trained in LSS
Three consecutive years – CFO Magazine
Best Working Capital Management
Program in the chemical industry
World’s Best Business
Process Excellence
Program in 2012*
95 certified Black Belts
211 certified Green Belts
422 Project Leaders
World’s Best “Start-up
Program” for Lean Six Sigma
Deployment in 2009*
*Both awards received from International Quality and Productivity Center
PolyOne Corporation Page 18
Debt Maturities & Pension Funding – 3/31/14
Net Debt / EBITDA* = 1.9x
$48
$317
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Debt Maturities
As of March 31, 2014
($ millions)
Coupon Rates: 7.500% 7.375% 5.250%
*TTM 12/31/2013
** includes US-qualified pension plans only
60%
100%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2014
Pension Funding**
As of March 31, 2014
PolyOne Corporation Page 19
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
$0.16
$0.20
$0.24
$0.32
$0.10
$0.20
$0.30
$0.40
2011 2012 2013 2014
Annual Dividend
Expanding our sales, marketing,
and technical capabilities
Targets that expand our:
• Specialty offerings
• End market presence
• Geographic footprint
• Operating Margin
Synergy opportunities
Adjacent material solutions
Repurchased 1.4 million shares in
Q1 2014
Repurchased 6.4 million
shares since April 2013
13.6 million shares are
available for
repurchase under the
current authorization
Organic
Growth
Acquisitions
Share
Repurchases
Dividends
Investing in operational and
LSS initiatives (including
synergy capture)
Manufacturing alignment
PolyOne Corporation Page 20
3.07 3.05
1.81
1.45
1.82
1.54
0.85
3.15
1.17
1.69
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
0.91
PolyOne
Valuation Aspirations
PEG Ratio Comparison
Represents $38 of
share price upside
Avg = 1.96
PolyOne Corporation Page 21
Innovating for the Future
Dr.
https://www.avient.com/knowledge-base/case-study/pain-therapy-device-stands-out-peers?rtype[]=1124
For guidance on materials for the housing, Biowave consulted PTA Corp., its molder, who in turn contacted its long-time partners on the GLS Thermoplastic Elastomers team at Avient.
Currently, nearly 40 professional teams and 17 college programs use BiowavePRO.
Portability: The ability to use the BiowavePRO practically anywhere is of great value to mobile sports teams.
https://www.avient.com/sites/default/files/2021-11/0514-02-dec2021.pdf
No. 0514.02) Revised 09/21/2021 Page 2 of 2
Test Description:
Test Method or Standard:
Thermal Analysis
DSC (Differential Scanning Calorimetry) ASTM D3418, E794, E1356
TGA (Thermogravimetric Analysis)
ASTM E1131
Karl Fischer Moisture Content
ASTM D6869
Phthalate Determination by CPSIA CPSC-CH-C1001-09.3, CPSC-CH-C1001-09.4
1 The Consumer Product Safety Improvement Act (CPSIA) requires that every children's product subject to a
federal consumer product safety requirement be tested by a Consumer Product Safety Commission (CPSC)
accepted laboratory for compliance with the applicable federal children's product safety
requirements.
This accreditation demonstrates
technical competence for a defined scope and the operation of a laboratory quality management system
(refer to joint ISO-ILAC-IAF Communiqué dated April 2017).
Presented this 28th day of February 2020.
_______________________
Vice President, Accreditation Services
For the Accreditation Council
Certificate Number 0514.02
Valid to December 31, 2021
Revised September 21, 2021
0514-02s
SCOPE OF ACCREDITATION TO ISO/IEC 17025:2017
Test Method or Standard:
Test Description:
0514-02c
https://www.avient.com/news/avient-present-lightweighting-design-innovation-and-sustainable-additive-solutions-plastics-automotive-engineering-conference
Visitors to Avient’s booth #17 can expect to see examples of foamed parts and molded-in-colors for automotive interiors, including aesthetic effects such as speckles, sparkles, and metallics, in addition to the latest ColorForward™ Color Trend Forecast.
About Avient
Avient Announces Quarterly Dividend...
https://www.avient.com/news/new-artisan-abs-thermoplastic-solution-avient-features-metallic-effect-electronics-brands
January 26, 2021
SHANGHAI – January 27, 2021 – Avient Corporation, a premier provider of specialized and sustainable material solutions and services, today announced the second material in its Artisan™ pre-colored thermoplastic series.
Avient Announces Quarterly Dividend...
https://www.avient.com/news/avient-boosts-aesthetics-and-productivity-consumer-electronics-new-non-blooming-versaflex-ce-3130-tpes
February 25, 2021
SHANGHAI – February 25, 2021– Avient Corporation, a premier provider of specialized and sustainable material solutions and services, today launched its Versaflex™ CE 3130 series – engineered thermoplastic elastomers (TPEs) to overcome the challenge of surface blooms on overmolded consumer electronics and boost productivity.
Avient Announces Quarterly Dividend...
https://www.avient.com/news/new-colormatrix-amosorb-4020r-avient-improves-oxygen-scavenging-100-percent-rpet-content
May 5, 2021
CLEVELAND – May 5, 2021 – Avient today announced the launch of ColorMatrix™ Amosorb™ 4020R, a non-nylon-containing oxygen scavenger additive specifically formulated to enable the use of up to 100 percent recycled PET (rPET) content.
Avient Announces Quarterly Dividend...
https://www.avient.com/sites/default/files/2023-08/AVNT August IR Presentation w NonGAAP Recs%5B40%5D.pdf
Pro Forma Financial Information
The Company acquired Avient Protective Materials (“Dyneema”) on September 1, 2022 (the “Acquisition Date”) and sold the Distribution segment on November 1, 2022.
To provide comparable results, the company references “pro forma” financial
metrics, which include the business results of Avient Protective Materials for periods prior to the Acquisition Date, as if the transaction occurred on January 1, 2021 and reflect Distribution as a discontinued operation.
Q 1 2 0 2 3
-8%
+6%
-1%
Flat
14
Total Avient -2.6%
2023 G U IDA N CE
$128
$525
$0.56
$2.40
2023 GUIDANCE
16
$800
$3,280
Sales Adjusted EBITDA Adjusted EPS
(in millions) (in millions)
17
• Focused on working capital
management, restructuring
actions to streamline
operations
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Preserve Free Cash Flow to
maintain net leverage
CASH FLOW / LEVERAGE
($ millions) 2023E
Cash Flow from Operating Activities 320$
Less: CapEx (140)
Free Cash Flow 180$
Adjusted EBITDA 525$
Net Debt / Adjusted EBITDA 3.0x
SUSTAINABILITY AS A GROWTH DRIVER
18
LONG-TERM REVENUE GROWTH DRIVERS
Revenue From Sustainable Solutions* 2016-2022
$340M
$405M
$455M
$550M
$790M
$915M
2016 2017 2018 2019 2020PF** 2021 2022PF***
$1,175M
*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
***2022 is Pro Forma for the acquisition of Avient Protective Materials and the divestiture of Distribution
60%+
Key Growth
Drivers
Sustainable
Solutions
Composites, Healthcare,
Asia / LATAM
Overlap
Other
(GDP Growth)
Total Company Revenue
SUSTAINABILITY REPORT
2022
• Provides progress on 2030 goals
• Reaffirms commitment to U.N.