https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Goldman%2520Basic%2520Materials%2520Conference.pdf
A reconciliation of each non-GAAP financial measure with the most directly comparable GAAP financial measure is attached to this presentation which is posted on our website at www.polyone.com. 4 POLYONE CORPORATION What We Do Value Formulation Expertise Inputs Base resins Additives Modifiers Pigments Expertise in Polymer Materials, Services and Solutions OEMs Brand Owners Processers Assemblers Driving customer value with specialty products & services Service InVisiOSM Color Services IQ Design Labs LSS Customer First POLYONE CORPORATION 5 2016 Revenue ($3.3 Billion) by Segment At a Glance United States 65% Canada 8% Europe 12% Asia 8% Latin America 7% $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.13 2009 2010 2011 2012 2013 2014 2015 2016 2016 Revenue by Geography 2016 Revenue by End Market Appliance 5% Building & Construction 11% Industrial 15% Electrical & Electronics 5% Consumer 11% Healthcare 11% Packaging 12% Textiles 2% Transportation 19% Wire & Cable 9% Adjusted Earnings Per Share Performance Products & Solutions 19% PolyOne Distribution 31% Designed Structures & Solutions 11% Specialty Engineered Materials 16% Color Additives and Inks 23% 6 POLYONE CORPORATION 2% 43% 80% 0% 20% 40% 60% 80% 100% 2005 2010 1Q 2017 % o f O pe ra tin g In co m e* *Operating Income excludes corporate charges and special items **LTM 1Q 2017 Specialty OI $5M $87M $274M** Mix Shift Highlights Specialty Transformation JV’s Performance Products & Solutions Specialty Mix Distribution 7 POLYONE CORPORATION 2006 1Q 2017 2020 “Where we were” “Where we are” Platinum Vision Operating Income % of Sales Color, Additives & Inks 1.7% 16.6% 20%+ Specialty Engineered Materials 1.1% 14.8% 20%+ Performance Products & Solutions 5.5% 12.0% 12 – 14% Distribution 2.6% 6.5% 6.5 – 7.5% Designed Structures & Solutions N/A -3.2% 8 – 10% ROIC* 5.0% 12.6% 15% Proof of Performance & 2020 Platinum Vision *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 Consistently Deliver Double Digit Annual EPS Growth 8 POLYONE CORPORATION Returning Cash to Shareholders $0.16 $0.20 $0.24 $0.32 $0.40 $0.48 $0.54 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 2011 2012 2013 2014 2015 2016 2017 Annual Dividend* Since 2011, we have returned nearly $900 million to shareholders $167 million returned through dividends $731 million returned through share repurchases *Initiated in 2011 $0 $150 $300 $450 $600 $750 2011 2012 2013 2014 2015 2016 1Q 2017 Cumulative Share Repurchases (in millions) $731M 9 POLYONE CORPORATION Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return Expanding our sales, marketing, and technical capabilities Investing in operational and LSS initiatives ~60 - 70% of capital expenditures fund growth initiatives Organic Growth Acquisitions Share Repurchases Dividends Targets that expand our: • Specialty offerings • End market presence • Geographic breadth Growth synergies Adjacent material solutions Repurchased 1.0 million shares in Q1 2017 Repurchased 19.8 million shares since early 2013 7.5 million shares are available for repurchase under the current authorization Increased annual dividend by 12.5% to $0.54 per share, representing the sixth consecutive year of dividend growth POLYONE CORPORATION 10 2,883 2,538 2006 2016 Volume (lbs in millions) -12% $103 $200 2006 2016 Commercial, R&D and Marketing Spending ($M) +95% $88 $317 2006 2016 Adjusted Operating Profit ($M) +263% Ours is Not a Cost Cutting Story 11 POLYONE CORPORATION Primary Industries Served 2016 Revenue: $3.3 Billion Appliance 5% Electrical & Electronic 5% Building & Construction 11% Industrial 15% Wire & Cable 9% Healthcare 11% Consumer 11% Packaging 12% Transportation 19% Focus End Markets 12 POLYONE CORPORATION Innovation Drives Earnings Growth *Specialty Platform revenue from products introduced in last five years $20 $54 2006 2016 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 33% 2006 2016 CAI & SEM Gross Margin 12% 42% 2006 2016 Target ≥ 35% Innovation Pipeline Potential POLYONE CORPORATION 13 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
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Use of Non-GAAP Measures Page 3 -150.00% -50.00% 50.00% 150.00% 250.00% 350.00% PolyOne S&P 500 All time high of $34.47 December 9th, 2013 • 16 consecutive quarters of double digit EPS growth • 42% CAGR adjusted EPS expansion 2006-2012 • YTD stock price has increased 63% versus 27% growth in the S&P • More than six fold increase in market cap: $0.5b $3.3b Strategy and Execution Drive Results Page 4 The World’s 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 2% 34% 43% 63% 65- 75% 0% 20% 40% 60% 80% 100% 2005 2008 2010 YTD 2013 2015 % o f O pe ra tin g In co m e* JV's PP&S Distribution Specialty Specialty OI $5M $46M $87M $153M Target Mix Shift Highlights Specialty Transformation 2015 Target Page 7 2006 YTD 2013 2015 Where we were Where we are Organic Consolidated Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 12.8% 12.8% 12 – 16% Global Specialty Engineered Materials 1.1% 10.8% 8.9% 12 – 16% Designed Structures & Solutions — — 5.0% 8 – 10% Performance Products & Solutions 5.5% 8.0% 8.2% 9 – 12% Distribution 2.6% 6.1% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 63% 65 – 75% 3) ROIC* (after-tax) 5.0% 9.4% 15% 4) Adjusted EPS Growth N/A 28% 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% 44.0% 2006 Q3 2013 $20.3 $46.6 2006 TTM Q3'13 14.3% 31.0% 2006 Q3 2013 Research & Development Spending Specialty Platform Vitality Index Progression* Innovation Drives Earnings Growth ($ millions) Specialty Platform Gross Margin % Page 9 We are Experts in Polymer Science and Formulation Polymer Science Formulation Chemistry Processing Inputs Base Resins Additives Modifiers Colorants Specialized Polymer Materials, Services, and Solutions Expertise Satisfied Consumers PolyOne Customer Innovative Products & Services Marketplace Demands Performance Requirements Value Drivers Page 10 Positioned for Strong Growth 2015 Target Rev: $5B Adj.
https://www.avient.com/sites/default/files/2020-09/sustainabilityreport2018.pdf
Sustainability Value Impact 2018 Sustainability Report 2 Sustainability Report | 2018 About PolyOne Message from the CEO 3 About Us: Vision and Values 4 Historic Transformation / Inspired Future 6 Our Sustainability Message What We Do / Where We Do It 8 Where We Are 10 Communities Counting on PolyOne 12 Sustainability @ PolyOne 14 PolyOne’s 4 Ps of Sustainability 15 People Safety First 17 Security 19 Talent Acquisition and Leadership Development 20 Career Training and Performance Feedback 21 Leadership Development Programs 22 Diversity & Inclusion 24 Associate Benefits 29 Awards & Recognition 30 Health & Wellness 31 A Great Place to Work 32 Products Innovation: The Lifeblood of a Specialty Organization 35 How Our Products Enable Sustainability 37 Mergers & Specialty Acquisitions 46 Our Solutions in Action: Product Case Studies 50 Product Stewardship & Excellence 56 Supplier Collaboration 58 Planet Environmental Stewardship 60 Energy & Emissions 62 Impact of LSS / Renewable Energy 64 Waste Management 66 Community Service 68 Community Engagement 70 Performance Performance Overview 73 Sustainable Products Performance 75 The Highest Ethical Standards 76 Enterprise Risk Management 79 Board of Directors 80 Appendix Environmental Data / GRI Content Index 81 Reconciliation of Non-GAAP Financial Measures 92 Contents Sustainability Report | 2018 3 At no greater time in the history of PolyOne has sustainability been such an influential force, and at the same time, a tremendous opportunity.
NYMAX™ AND BERGAMID™ RECLAIMED NYLON FORMULATIONS offer high strength, durability and impact resistance, all while enabling landfill waste reduction of >21M pounds since 2016, by providing an alternative use for post-industrial reclaimed nylon*.
Through our design expertise, deep material science resources, and the energy and passion of our associates, PolyOne is well placed to help organizations such as GV2020 achieve their goals and make the world a better place to live.” 70 Sustainability Report | 2018 Avon Lake, United States Our Avon Lake Community Service Team plans quarterly community service events for any associate to participate.
https://www.avient.com/sites/default/files/2020-10/2019-avient-sustainability-report.pdf
Louis, Missouri HOME | Contents | Message from the CEO | Who We Are | People | Products | Planet | Performance | Goals & Metrics | Indices Sustainability Report | 2019 26 0 35 70 105 140 Talent Acquisition and Campus Recruiting Attracting top talent in all regions of the world is paramount for both meeting the current challenges our customers face, as well as building experience within Avient and our industry—to meet the needs of the future.
Additional information can be found in our Position Statement on Human Rights. 55+32+46+25+35 0+10+90Under 30 0% 30–50 10% Over 50 90% Under 30 30–50 Over 5015+56+29 Male Female 30+70 HOME | Contents | Message from the CEO | Who We Are | People | Products | Planet | Performance | Goals & Metrics | Indices Sustainability Report | 2019 33 https://www.avient.com/company/policies-and-governance/avients-position-human-rights Associate Benefits What it takes to be a sustainable company has many parallels with being a great place to work.
HOME | Contents | Message from the CEO | Who We Are | People | Products | Planet | Performance | Goals & Metrics | Indices Sustainability Report | 2019 70Sustainability Report | 2019 70 https://endplasticwaste.org/about/ https://endplasticwaste.org/about/ https://www.opcleansweep.org Earth Day Photo Contest To celebrate Earth Day this year, we challenged our Avient associates to share photos they have taken that depict and celebrate the Earth’s beauty.
https://www.avient.com/sites/default/files/2021-04/avient-sustain-2019-210419-interactive.pdf
Louis, Missouri HOME | Contents | Message from the CEO | Who We Are | People | Products | Planet | Performance | Goals & Metrics | Indices Sustainability Report | 2019 26 0 35 70 105 140 Talent Acquisition and Campus Recruiting Attracting top talent in all regions of the world is paramount for both meeting the current challenges our customers face, as well as building experience within Avient and our industry—to meet the needs of the future.
Additional information can be found in our Position Statement on Human Rights. 55+32+46+25+35 0+10+90Under 30 0% 30–50 10% Over 50 90% Under 30 30–50 Over 5015+56+29 Male Female 30+70 HOME | Contents | Message from the CEO | Who We Are | People | Products | Planet | Performance | Goals & Metrics | Indices Sustainability Report | 2019 33 https://www.avient.com/company/policies-and-governance/avients-position-human-rights Associate Benefits What it takes to be a sustainable company has many parallels with being a great place to work.
HOME | Contents | Message from the CEO | Who We Are | People | Products | Planet | Performance | Goals & Metrics | Indices Sustainability Report | 2019 70Sustainability Report | 2019 70 https://endplasticwaste.org/about/ https://endplasticwaste.org/about/ https://www.opcleansweep.org Earth Day Photo Contest To celebrate Earth Day this year, we challenged our Avient associates to share photos they have taken that depict and celebrate the Earth’s beauty.
https://www.avient.com/sites/default/files/2020-10/tpe-overmold-design-guide.pdf
Flow Length, inches (cm) Series Injection Velocity, 3 in/s (8 cm/s) Injection velocity, 5 in/s (13 cm/s) DynaflexTM D 13-15 (33-38) 18-20 (46-51) DynaflexTM G 12-22 (30-56) 18-30 (46-70) VersaflexTM 9-16 (23-41) 13-26 (33-66) VersalloyTM 18-20 (46-51) 30-32 (76-81) VersollanTM 12-17 (30-43) 19-22 (48-56) *Spiral flow tests performed using a 0.0625" (1.6mm) thick, 0.375" (9.5mm) wide channel at 400˚F (204˚C).
TPE mold temperatures of 70-120˚F (21-49˚C) are typical.
TPE mold temperatures of 70-120˚F (21-49˚C) are typical.
https://www.avient.com/sites/default/files/2023-07/Avient-2022-Sustainability-Report.pdf
Visit Our Sustainability Site for More Information LEARN MORE As a founding member of the Alliance to End Plastic Waste, Avient will collaborate to develop and implement solutions to end plastic waste with over 70 members across the value chain.
Rania, India 70.
HOME | Contents | Message from the CEO | About Us | People | Products | Planet | Performance | Metrics | Index Sustainability Report | 2022 70 Earth Day Clean Up Associates in Avon Lake picked up waste and litter in the Cleveland Metroparks in honor of Earth Day.
https://www.avient.com/knowledge-base/article/what-s-difference-fillers-reinforcements?ind[]=21508
Added in at volumes ranging from less than 1 percent to more than 70 percent by weight, minerals are typically mined from the earth and then refined to produce uniform particle size distribution.
https://www.avient.com/sites/default/files/resources/Innovation_Day_-_May_2014_0.pdf
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 $38 of share price upside Avg = 1.96 PolyOne Corporation Page 21 Innovating for the Future Dr.
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Leverage PolyOne’s global reach Phase 1 Phase 2 Phase 3 18-20% operating margins Invest in commercial resources I N V E S T - T O - G R O W P R O O F O F P E R F O R M A N C E PolyOne Corporation 25 Commercial Resources Operating Income ($ in millions) Operating Margins 243 340 At Acquisition Today $36 $96 At Acquisition Today 11% 20% At Acquisition Today Established Acquisitions (> 7 years) + 40% + 165% + 900 bps I N V E S T - T O - G R O W D R I V I N G T H E F U T U R E PolyOne Corporation 26 Commercial Resources Operating Income ($ in millions) Operating Margins 138 181 251 At Acquisition Today Goal $23 $25 $70 At Acquisition Today Goal 7% 8% 18-20% At Acquisition Today Goal Recent Acquisitions PolyOne Corporation 27 Average Company Size # of Possibilities Rationale $200M • • • 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 $900 2011 2012 2013 2014 2015 2016 2017 2018 $890M 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 . 2 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 $0.54 $0.70 $0.78 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 3-Year Dividend Plan Cumulative Share Repurchases Increasing Annual Dividend 28 6.3% 14.1% 16-17% 2009 2018 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 29 PolyOne Corporation 30 W H Y I N V E S T I N P O L Y O N E ?