https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Jefferies%2520Industrials%2520Conference%25202015.pdf
PolyOne Corporation Page 1 PolyOne Investor Presentation Jefferies 2015 Industrials Conference August 2015 PolyOne Corporation Page 2 Forward-Looking Statements In this presentation, statements that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
S&P 500 PolyOne Corporation Page 9 2006 YTD 2015 2020 “Where we were” “Where we are” Platinum Vision 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 17.2% 20%+ Global Specialty Engineered Materials 1.1% 15.3% 20%+ Designed Structures & Solutions 1.4% (2012) 3.3% 12 – 14% Performance Products & Solutions 5.5% 7.6% 10 – 12% Distribution 2.6% 6.5% 6.5 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 67% 80%+ 3) ROIC (after-tax)* 5.0% 11.7% 15% 4) Adjusted EPS Growth N/A 23 Consecutive Quarters of YOY EPS Growth Double Digit Expansion Proof of Performance & 2020 Goals *ROIC is defined as TTM adjusted operating income after-tax divided by the sum of average debt and equity over a 5 quarter period PolyOne Corporation Page 10 Platinum Vision: Pathway to Accelerated Growth Organic Sales Growth Margin Expansion Share Repurchases Acquisitions PolyOne Corporation Page 11 Innovation Drives Earnings Growth *Percentage of Specialty Platform revenue from products introduced in last five years $20 $53 2006 2014 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 27% 2006 2014 Specialty Platform Gross Margin % 20% 44% 2006 2014 Specialty Vitality Index Target ≥ 35% PolyOne Corporation Page 12 Megatrends Aligned with Key End Markets Decreasing Dependence on Fossil Fuels Protecting the Environment Improving Health and Wellness Megatrend End Markets Globalizing and Localizing Health & Wellness Transportation Packaging Consumer PolyOne Corporation Page 13 Prototype Frame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 6 9 7 3 5 12 5 3 2 8 4 2 4 3 1 Breakthrough Platform Derivative A Rich Pipeline of Opportunity Number of Projects 14 8 18 12 22 74 Addressable Market ($ millions) $700 $600 $600 $1,900 PolyOne Corporation Page 14 60% 102% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 Q2 2015 Pension Funding** As of June 30, 2015 Debt Maturities & Pension Funding Net Debt / Adjusted EBITDA** = 2.0x Coupon Rate: 7.500% Variable* 7.375% 5.250% ** includes US-qualified pension plans only *Weighted average rate on revolver was 2.40% as of 6/30/15 **TTM 6/30/2015 $49 $79 $317 $600 $400 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2018 2020 2023 Debt Maturities As of June 30, 2015 ($ millions) PolyOne Corporation Page 15 Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return Expanding our sales, marketing, and technical capabilities Investing in operational and LSS initiatives ~75% of capital expenditures fund growth initiatives Organic Growth Acquisitions Share Repurchases Dividends $0.16 $0.20 $0.24 $0.32 $0.40 $0.10 $0.20 $0.30 $0.40 $0.50 2011 2012 2013 2014 2015 Annual Dividend Targets that expand our: • Specialty offerings • End market presence • Geographic breadth Synergy opportunities Adjacent material solutions Repurchased nearly 600K shares in Q2 2015 Repurchased 12.4 million shares since early 2013 7.6 million shares are available for repurchase under the current authorization PolyOne Corporation Page 16 PolyOne Core Values Innovation Collaboration Excellence PolyOne Corporation Page 17 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
Platform operating income mix percentage 2005* 2006* 2007* 2008* 2009* 2010* 2011 2012 2013 2014 2015 YTD Global Color, Additives and Inks $ 4.3 $ 8.9 $ 25.7 $ 28.1 $ 25.2 $ 37.7 $ 50.2 $ 75.3 $ 104.0 $ 124.9 $ 73.4 Global Specialty Engineered Materials 0.4 3.9 4.9 17.6 20.6 49.7 45.9 47.0 57.2 72.4 43.2 Designed Structures and Solutions - - - - - - - - 33.4 45.1 7.7 Specialty Platform $ 4.7 $ 12.8 $ 30.6 $ 45.7 $ 45.8 $ 87.4 $ 96.1 $ 122.3 $ 194.6 $ 242.4 $ 124.3 Performance Products and Solutions 75.7 64.2 65.8 31.3 33.1 54.0 27.7 38.8 56.0 63.1 27.8 Distribution 19.5 19.2 22.1 28.1 24.8 42.0 56.0 66.0 63.3 68.2 34.8 Joint ventures 91.9 102.9 34.8 28.6 25.5 18.9 5.0 - - - - Corporate and eliminations (51.5) 34.5 (73.3) (425.1) 7.9 (27.7) 18.2 (89.6) (82.4) (218.6) (36.5) Operating income (loss) GAAP $ 140.3 $ 233.6 $ 80.0 $ (291.4) $ 137.1 $ 174.6 $ 203.0 $ 137.5 $ 231.5 $ 155.1 $ 150.4 Less: Corporate operating expense 51.5 (34.5) 73.3 425.1 (7.9) 27.7 (18.2) 89.6 82.4 218.6 36.5 Operating income excluding Corporate $ 191.8 $ 199.1 $ 153.3 $ 133.7 $ 129.2 $ 202.3 $ 184.8 $ 227.1 $ 313.9 $ 373.7 $ 186.9 Specialty platform operating mix percentage 2% 6% 20% 34% 35% 43% 52% 54% 62% 65% 67% * Historical results have not been restated for the Resin business divestiture or the related resegmentation. 2 Adjusted EPS 2006Y* 2007Y* 2008Y* 2009Y* 2010Y 2011Y 2012Y 2013Y 2014Y Net income attributable to PolyOne common shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 Joint venture equity earnings, after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) - - - Special items, after tax(1) (21.2) 41.4 310.0 (31.0) 15.8 (30.5) 35.7 30.4 101.0 Tax adjustments(2) (30.0) (30.7) 147.2 (44.9) (88.3) (42.3) 0.5 2.2 (10.5) Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8 96.5 93.5 Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 Adjusted EPS 2010 Q2 2011 Q2 2012 Q2 2013 Q2 2014 Q2 2015 Q2 Net income attributable to PolyOne common shareholders $ 44.7 $ 23.1 $ 18.4 $ 38.6 $ 30.9 $ 66.8 Joint venture equity earnings, after tax (4.5) - - - - - Special items, after tax(1) (9.0) 0.9 8.0 (2.2) 22.6 8.0 Tax adjustments(2) (13.1) 0.4 0.9 0.2 (5.2) (23.9) Adjusted net income $ 18.1 $ 24.4 $ 27.3 $ 36.6 $ 48.3 $ 50.9 Diluted shares 96.3 95.5 90.7 99.1 94.3 89.8 Adjusted EPS $ 0.19 $ 0.26 $ 0.30 $ 0.37 $ 0.51 $ 0.57 * Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principal or discontinued operations. (1) Special items are a non-GAAP financial measure.
https://www.avient.com/sites/default/files/2024-10/Avient_CodeConduct_2024_SVE2.pdf
subject= http://Avient.com mailto:https://secure.ethicspoint.com/domain/media/en/gui/49178/index.html?
Följ dessa två enkla regler: 1.
INNEHÅLLSFÖRTECKNING INTRODUKTION VÅR UPPFÖRANDEKOD RESPEKT FÖR ALLA ÄRLIGHET PÅ ARBETET INTEGRITET I VÅRA AFFÄRER BOLAGETS SOCIALA ANSVAR RESURSER UPPFÖRANDEKOD | 30 http://avient.ethicspoint.com http://avient.ethicspoint.com http://avient.ethicspoint.com Nordamerika Globalt huvudkontor Avon Lake, USA 33587 Walker Road Avon Lake, Ohio, USA 44012 Gratis inom USA: +1 866 765 9663 Telefon: +1 440 930 1000 Fax: +1 440 930 3064 Asien och Stillahavsområdet Regionalt huvudkontor Shanghai, Kina 2F, Block C 200 Jush Road Pudong, 201206 Shanghai, Kina Telefon: +86 (0) 21 6028 4888 Fax: +86 (0) 21 6028 4999 Sydamerika Regionalt huvudkontor Sao Paulo, Brasilien Av.
https://www.avient.com/sites/default/files/2023-07/Avient_CodeConduct_2023_Arabic.pdf
بينما تسافر في رحلة عمل، يتُوقّع منك: 1 ..Avient الالتزام بسياسة السفر والترفيه بشركة 2 الظهور بمظهر وسلوك يعمل على الارتقاء والحفاظ على سمعة .
اتبع هاتيْْن القاعدتيْْن البسيطتيْْن: 1 لا تستخدم معلومات جوهرية غير مخصصة للعامة لتحقيق مكاسب .
تايقالخألل نخاسلا طخلا https://www.Avient.com/company/policies-and-governance/ethics-hotline :تايقالخألل نخاسلا طخلا فتاه مقر 1-877-228-5410 https://www.Avient.com/company/policies-and-governance/ethics-hotline أمريكا الشمالية المقر العالمي آفون ليك، الولايات المتحدة الأمريكية ووكر رود آفون ليك، أوهايو ، الولايات 33587 المتحدة 44012 الخط المجاني: 9663 765 866 1+ الهاتف: 1000 930 440 1+ الفاكس:3064 930 440 1+ آسيا والمحيط الهادئ المقر الإقليمي بشنغهاي الصين ف، بلوك سي 200 جينسو رود بودونغ، 2،201206 شنغهاي، الصين الهاتف: 4888 6028 21 (0) 86+ الفاكس: 4999 6028 21 (0) 86+ أمريكا الجنوبية المقر الإقليمي ساو باولو ، البرازيل جادة فرانسيسكو ناكاساتو، 1700 إتوبيفا، ساو باولو، البرازيل 000- 13295 الهاتف: 9200 4593 11 55+ أوروبا المقر الإقليمي بومرلوتش، لوكسمبورغ ،طريق باستون بومرلوتش، لوكسمبورغ 19 L-9638 الهاتف: 35 050 269 352+ الفاكس: 45 050 269 352+ www.avient.com http://www.avient.com
https://www.avient.com/sites/default/files/2023-07/Avient_CodeConduct_2023_LatinAmerica.pdf
Siga estas dos simples reglas: 1.
Queremos que usted y su familia estén sanos y seguros. http://Avient.com/sustainability 25 Índice Preguntas y respuestas P: Mi supervisor me pidió que siguiera un nuevo procedimiento de eliminación de residuos, pero dudo de que sea seguro o incluso legal.
Línea directa de ética: https://www.Avient.com/company/policies-and-governance/ethics-hotline Número de teléfono de la línea directa de ética: 1-877-228-5410 https://www.Avient.com/company/policies-and-governance/ethics-hotline Norteamérica Sede central global de Avon Lake, Estados Unidos 33587 Walker Road Avon Lake, OH, Estados Unidos 44012 Número gratuito: +1 866 765 9663 Teléfono: +1 440 930 1000 Fax: +1 440 930 3064 Asia Pacífico Sede central regional de Shanghái, China 2F, Block C 200 Jinsu Road Pudong, 201206 Shanghái, China Teléfono: +86 (0) 21 6028 4888 Fax: +86 (0) 21 6028 4999 Sudamérica Sede central regional de San Pablo, Brasil Av.
https://www.avient.com/sites/default/files/2023-07/Avient_CodeConduct_2023_Indonesian.pdf
Saat melakukan perjalanan bisnis perusahaan, Anda diharapkan untuk: 1.
Ikuti dua aturan sederhana berikut: 1.
Saluran langsung Etika https://www.Avient.com/company/policies-and-governance/ethics-hotline Nomor Telepon Saluran Langsung Etika: 1-877-228-5410 https://www.Avient.com/company/policies-and-governance/ethics-hotline Amerika Utara Kantor Pusat Global Avon Lake, Amerika Serikat 33587 Walker Road Avon Lake, OH, Amerika Serikat 44012 Nomor Bebas Pulsa: +1 866 765 9663 Nomor Telepon: +1 440 930 1000 Faks: +1 440 930 3064 Asia Pasifik Kantor Pusat Regional Shanghai, Tiongkok 2F, Block C 200 Jinsu Road Pudong, 201206 Shanghai, Tiongkok Telepon: +86 (0) 21 6028 4888 Faks: +86 (0) 21 6028 4999 Amerika Selatan Kantor Pusat Regional Sao Paulo, Brasil Av.
https://www.avient.com/sites/default/files/2023-07/Avient_CodeConduct_2023_Spain_0.pdf
Siga estas dos reglas sencillas: 1. no use información sustancial y no pública para su propio beneficio; y 2. no comparta esta información con alguien que no tenga necesidad de conocerla en su trabajo en Avient.
Deseamos que usted y su familia estén sanos y seguros. http:// Avient.com/sustainability 25 Índice Preguntas y respuestas P: Mi supervisor me ha pedido que siga un nuevo procedimiento de eliminación de residuos, pero no sé con certeza si es seguro o incluso legal.
Línea Directa de Ética: https://www.Avient.com/company/policies-and-governance/ethics-hotline Número de teléfono de la Línea Directa de Ética: 1-877-228-5410 https://www.Avient.com/company/policies-and-governance/ethics-hotline Norteamérica Sede mundial de Avon Lake, Estados Unidos 33587 Walker Road Avon Lake, OH, Estados Unidos 44012 Llamada gratuita: +1 866 765 9663 Teléfono: +1 440 930 1000 Fax: +1 440 930 3064 Asia Pacífico Sede regional de Shanghái, China 2F, Bloque C 200 Jinsu Road Pudong, 201206 Shanghái, China Teléfono: +86 (0) 21 6028 4888 Fax: +86 (0) 21 6028 4999 Sudamérica Sede regional en São Paulo, Brasil Av.
https://www.avient.com/sites/default/files/2023-07/Avient_CodeConduct_2023_russian.pdf
Следуйте этим двум простым правилам: 1.
Горячая линия по вопросам деловой этики: https://www.Avient.com/company/policies-and-governance/ethics-hotline Номер телефона горячей линии по вопросам этики: 1-877-228-5410 https://www.Avient.com/company/policies-and-governance/ethics-hotline Северная Америка Международная штаб-квартира в г.
Эйвон-Лейк, США 33587 Walker Road Avon Lake, OH, United States 44012 Бесплатный тел.: +1-866-765-9663 Телефон: +1-440-930-1000 Факс: +1-440 930 3064 Азиатско-Тихоокеанский регион Региональный офис в Шанхае, Китай 2F, Block C 200 Jinsu Road Pudong, 201206 Shanghai, China Телефон: +86 (0) 21 6028 4888 Факс: +86 (0) 21 6028 4999 Южная Америка Региональный офис в Сан-Паулу, Бразилия Av.
https://www.avient.com/sites/default/files/2024-02/Gordon Glass Distributor List.pdf
subject= http://www.3riversarchery.com mailto:rosewoodarchery%40gmail.com?
subject= http://www.rosewoodarchery.com mailto:bigjimsbows%40gmail.com?
subject= http://www.morrisonarchery.com
https://www.avient.com/sites/default/files/2020-03/Global_High_Yield_%26_Leverage_Conference %281%29.pdf
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 Injuries per 100 Workers Spartech Acquisition 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 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 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 PolyOne Corporation 6 • Volume driven, commodity production • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures • Shift to value-based selling & an innovative culture • New leadership team appointed • Implementation of four pillar strategy • Investment in commercial training and innovation • Faster growing, high margin focus • Accelerated growth with world class vitality index • Significant commercial resource additions • Expanded margins with specialty focus • Acquired strategic, bolt-on companies to expand technology offerings and improve geographic breadth Volume Value Transformation The Future 2006 - 2013 2013 – 20192000-2005 2006 - 2013 • Landmark portfolio transformation creates specialty growth company • Sustainability / mega- trends drive above market growth 2020 and Beyond PolyOne Corporation 7 P O L Y O N E 2 0 1 9 R E V E N U E | $ 2 . 9 B I L L I O N Segment End Market Geography Transportation 15% Healthcare 15% Industrial 14% Packaging 13% Consumer 12% 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% P R O O F O F P E RFO RMAN CE C O N S E C U T I V E Y E A R S 10 A D J U S T E D E P S E X P A N S I O N PolyOne Corporation 8 $1.69 $1.51 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 9 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 Expand specialty portfolio with strategic acquisitions Innovate and develop new technologies and services Repurchase 600K-1M shares annually Increase commercial resources 5-7% annually Double acquired company margins Enhance efficiencies through Lean Six Sigma and commercial excellence 531 710 1,042 130 164 208 504 663 880 2014 2018 2019E PF* R&D / Technical Marketing Sales PolyOne Corporation 10 + 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 $2.9 $2.9 $3.5 2015 2016 2017 2018 2019E PF Total + 9% Organic + 5% Revenue in Billions Total + 10% Organic + 7%+ 47% + 27% + 33% $4.0 $3.2 2019E PF* * 2019E Pro Forma for PP&S Divestiture and Clariant Masterbatch business 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 11 Expanded Path Traditional Path Strategic Accounts/ Field Sales Business Development Customer Service Web and Social Media Inside Sales PolyOne Corporation 12 Investments in digital and dedicated inside sales to improve customer experience 110% increase in leads (from 6,000 to 12,700) driven by website, phone, and online chat EXPANDED PATH 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 33 2014 2019 Inside sellers $11M $87M 2014 2019 Inside sales/digital revenue 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 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 PolyOne Corporation 14 2016 2017 2018 2019 Lightweighting Reduced Material Requirements Improved Recyclability Renewable Energy Applications Eco-conscious Bio-derived Content Reduced Energy Use VOC Reduction $275M $325M $355M $410M 14% Total Annual Growth 9% Organic Annual Growth I N N O V A T I O N PolyOne Corporation 15 Customization 55% M&A 30% Innovation Pipeline 15% Innovation comes from Research & Development Spend ($ millions) Vitality Index % of sales from products launched last 5 years 12% 37% 2006 2019 $20 $51 2006 2019 Transformational Opportunity for Growth Through M&A Adjacent Opportunity for Growth Through New Product Pipeline Core Customization 3 H O R I Z O N S O F D E V E L O P M E N T PolyOne Corporation 16 Incremental development from existing base of technology New development adjacent to current technology New technology development outside of and with our current base Service adjacent markets and customers Create new markets, target new customer needs Service existing markets and customers Market Technical I N N O V A T I O N Non-Halogen Flame Retardants Barrier Technologies Fiber Colorants Advanced Composites Thermoplastic Elastomers Gordon Composites/ Polystrand – Composites GLS – Thermoplastic Elastomers ColorMatrix – Liquid Color & Additives PlastiComp Fiber-Line I N N O V A T I O N S P O T L I G H T : C O M P O S I T E S PolyOne Corporation 17 C O M P O S I T E M A T E R I A L S Glass Carbon Aramid Thermosets Thermoplastics PolymersFibers PolyOne Corporation 18 Focused End Markets • Wire & Cable / Electrical • Consumer • Transportation • Industrial C O M P O S I T E S P O R T F O L I O D I V E R S E C A P A B I L I T I E S A N D S O L U T I O N S S E R V I N G M A N U F A C T U R E R S A N D O E M S PolyOne Corporation 19 LFT Tapes Laminates/Panels Shapes Pultrusion Engineered Fibers P O L Y O N E A P P L I C A T I O N S I N F I B E R O P T I C C A B L E S PolyOne Corporation 20 1.
Leverage PolyOne’s global reach Phase 1 Phase 2 Phase 3 18-20% operating margins Invest in commercial resources I N V E S T - T O - G R O W P R O O F O F P E R F O R M A N C E PolyOne Corporation 24 Commercial Resources Operating Income ($ in millions) Operating Margins 256 309 At Acquisition Today $36 $100 At Acquisition Today 9% 19% At Acquisition Today Established Acquisitions (> 7 years) + 20% + 165% + 1000 bps CLARIANT MASTERBATCH ACQUISITION DRIVES NEXT LEVEL SPECIALTY TRANSFORMATION ACCELER ATING GR OWTH WITH SUSTAINABLE SOLUTIONS T R A N S F O R M A T I O N H E A D L I N E S PolyOne Corporation 26 F I T W I T H F O U R P I L L A R S T R A T E G Y PolyOne Corporation 27 Specialization • Innovation-led organization with heavy emphasis on R&D • World-class expertise in color formulation • Strong presence in specialty end markets including Consumer, Packaging and Healthcare Globalization • Diverse geographic portfolio with an established presence in every major region • Expands PolyOne’s ability to serve customers in key growth areas including India, China and Southeast Asia Operational Excellence • Extensive manufacturing footprint with 46 facilities • Organizational focus on optimizing supply chain to better serve customers • Color design expertise Commercial Excellence • Value-focused salesforce with vast experience marketing and commercializing specialty technologies • Diverse customer portfolio with established OEM’s People Experienced and talented associates with a winning mentality E N D M A R K E T T R A N S F O R M A T I O N PolyOne Corporation 28 Building & Construction 5% 2006 2019E PF* 4% 12% 10% 18% 8% 20% 2006 2019E PF* Healthcare Consumer Packaging 50% 22% High Growth End Markets Percentage of Total Revenue 38% * 2019E Pro Forma for PP&S Divestiture and Clariant Masterbatch business E N D M A R K E T T R A N S F O R M A T I O N PolyOne Corporation 29 Packaging 8% Building & Construction 38% Wire & Cable 11% Industrial 10% Electrical & Electronic 7% 2006 2019E PF* Healthcare 4% Transportation 12% Consumer 18% Building & Construction 5% Wire & Cable 6% Industrial 12% Electrical & Electronic 5% Appliance 3% Textiles 6% Transportation 13% Healthcare 12% Packaging 20% Consumer 10% * 2019E Pro Forma for PP&S Divestiture and Clariant Masterbatch business C O M P L E M E N T A R Y G E O G R A P H I C P R E S E N C E PolyOne Corporation 30 United States 38% Europe 33% Asia 19% Canada 4% Latin America 6% United States 22% Europe & Middle East 48% Asia 23% Canada 1% Latin America 6% Color & Engineered Materials Clariant Masterbatch Business Net Sales by Geographic Region United States 31% Europe & Middle East 39% Asia 21% Canada 3% Latin America 6% Pro Forma Color & Engineered Materials 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 PolyOne Corporation 31 2006 - 2013 2013 – 2019 PEO PLE PRO D U C TS PLA N ET PER FO R M A N C E PolyOne Clariant Masterbatch Business • Building mini-recycling plants to facilitate customer projects on design for recycling - CycleWorks • Uses packaging additives & colorants to improve recyclability and enhance automated sorting • Manufactures oxygen scavengers to extend shelf-life of perishable items and reduce material requirements • Combines UV-blocking additive colorants & other barriers to prevent spoilage and waste • Offers spin-dyeing solutions that use significantly less water than traditional methods, allowing for sustainable coloration of textiles • Produces infrared absorbing additives that reduce energy requirements for bottle manufacturing ($ in millions) PolyOne (Continuing Operations) Clariant Color & Additive Masterbatch Business Synergies New PolyOne 2019 Total Sales $2,863 $1,150 $4,013 2019 Adjusted EBITDA $309 $130 $60 $499 % Margin 10.8% 11.3% 12.4% 2019 CapEx $68 $85 % Sales 2.4% 2.1% 2019 Free Cash Flow $161 $250 2019 Adjusted EPS $1.69 $2.22 2019 PF Adjusted EPS $1.69 $2.54 P O L Y O N E + C L A R I A N T M A S T E R B A T C H B U S I N E S S PolyOne Corporation 32 (1) Excludes step-up of depreciation & amortization related to purchase accounting of transaction (1) $0.85/share 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 PolyOne Corporation 33 46% 66% 0% 20% 40% 60% 80% 100% 2005 2010 2015 2019E PF % o f A d ju st e d E B IT D A * JV's Performance Products & Solutions Distribution Specialty 7% 87% * Adjusted EBITDA is EBITDA excluding corporate costs and special items ** 2019E Pro Forma for PP&S Divestiture and Clariant Masterbatch business acquisition with synergies Specialty EBITDA $14M $117M $273M $500M ** T R A N S A C T I O N O V E R V I E W • Expected mid-2020, subject to regulatory approvals and customary closing conditions Closing Conditions / Timing • Committed financing in place • Permanent financing to be combination of available cash on-hand, new debt and equity component to limit leverage • Equity issuance of $500MM • Target net leverage below 3.5x, 3.1x synergized PolyOne Corporation 36 • $1.45 B net purchase price • Represents 11.1x adjusted EBITDA (excluding synergies), 7.6x adjusted EBITDA (including synergies) • Pre-tax synergies of $60MM expected to be fully realized by the end of 2023 • Synergies realized from sourcing, operational, technology / commercial, and general administrative Transaction Value Synergies Financing Estimated Synergy Breakdown $60MM • Expect EBITDA synergies of $60MM – Proven integration expertise with a decade of acquisition experience – Administrative synergies reflect reduction of duplicative internal and third-party costs • Run rate synergies of $20MM by the end of Year 1 with $60MM achieved by the end of Year 3 • Significant additional opportunity for geographical expansion – Clariant Masterbatch business has complementary regional presence in key growth areas including India & Southeast Asia • Opportunity to accelerate growth with a combined portfolio of innovative solutions aligned with sustainability megatrends Sourcing 40% Operational 30% Administrative 30% PolyOne Corporation 37 S I G N I F I C A N T S Y N E R G Y O P P O R T U N I T I E S $450 $600 $624 $743 2019 2020 2021 2022 2023 2024 2025 2026 A T T R A C T I V E F I N A N C I N G S T R U C T U R E Attractive Debt Maturity Profile Existing Revolver Existing Senior Notes Existing Term Loan B New Debt Financing Financing Summary Terms on New Debt • $465 million of cash from the balance sheet expected to fund a portion of the purchase price • Bridge financing for remainder fully committed from Citi, Morgan Stanley and Wells Fargo • Permanent financing expected to include a combination of long-term debt and new equity • The timing of the permanent financing is subject to a number of factors, including, but not limited to, market conditions • PolyOne is committed to preserving a strong balance sheet – Target net leverage at close below 3.5x, excluding synergies • Pro forma capital structure positions PolyOne with flexibility to pursue continued growth strategy • New financing expected to have same or better covenant package than existing capital structure • Capital structure would be “covenant lite” Capital Policy • Transaction in line with PolyOne’s disciplined capital allocation policy • Existing PolyOne dividend policy to be maintained • Focus on deleveraging in the near term 2028+ PolyOne Corporation 38 PolyOne Corporation 37 $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 Cumulative Share Repurchases (In millions) $0 $150 $300 $450 $600 $750 $900 2011 2012 2013 2014 2015 2016 2017 2018 2019 $917M 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 Increasing Annual Dividend 38 $0.81 PolyOne Corporation 39 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 Transformational M&A with PP&S divestment and pending acquisition of Clariant Masterbatch business 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 Proven acquisition strategy with robust pipeline Commercial investments are fueling momentum and generating organic growth SERVICE: 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 40 T A L E N T D E V E L O P M E N T PolyOne Corporation 41 Leadership Program Participants 2012 2013 2014 2015 47 0 86 2016 2019 125 169 412 Campus Hires 2008 2011 2014 2017 0 25 90 47 PolyOne LSS Blackbelts 2008 2011 2014 2019 0 67 247 147 2019 134 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 IQ DESIGN PolyOne Corporation 42 Computer Aided Engineering Design Strategy 3 15 2014 2019 Designers & Engineers $0 $15M 2014 2019 $4M $87M 2014 2019 Opportunity funnel Total Revenue LSS CUSTOMER FIRST PolyOne Corporation 43 Customer Engagements Enables sales growth by building more intimate customer relationships, giving us insight to customers’ needs, with a service that is not easily replicated 2014 2019 2 210 I N N O V A T I N G W I T H P O L Y O N E PolyOne Corporation 44 SEGMENT HIGHLIGHTS 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 45 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% 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 PolyOne Corporation 46 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% 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 47 Engineered Formulations Advanced Composites Thermoplastic Elastomers Wire & Cable 15% Telecommunications (FOC) 13% Consumer 19% Electrical & Electronics 12% Healthcare 9% Industrial 8% Packaging 6% Appliance 2% Building & Construction 2% Transportation 14% Note: (FOC) refers to Fiber Optic Cabling 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 PolyOne Corporation 48 Europe 27% United States 54% Asia 17% Canada 2% $21 $57 $87 2005 2009 2013 2019 0.1% 5.1% 9.3% 11.6% 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 49 Healthcare 28% Transportation 23% Industrial 19% Consumer 12% 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% http://www.polyone.com/Pages/VariationRoot.aspx 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 PolyOne Corporation 50 Performance Additives 15% Polyethylene 13% Pigments 9% Styrenic Block Copolymer 7% Nylon 7% TiO2 6% Polypropylene 5% Dyestuffs 4% Plasticizers 3% Other Raw Materials 31% $900 million of raw material purchases in 2019 excluding Distribution business Note: All figures exclude divested PP&S business 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 51 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 PolyOne Corporation 63 Global high yield & leveraged finance Conference Forward Looking Statements USE OF �NON-GAAP�MEASURES Vision Safety First Commodity to Specialty Transformation PolyOne�2019 Revenue | $2.9 billion Slide Number 8 Sustainable Path to Double-Digit EPS Growth Expansion of Commercial Resources driving growth The Evolving Customer Relationship Slide Number 12 Aligning with trends for Growth Revenue from Sustainable Solutions Innovation 3 Horizons of Development Innovation Spotlight: Composites COMPOSITE MATERIALS COMPOSITEs Portfolio�Diverse Capabilities and Solutions Serving Manufacturers and OEMS PolyOne applications in Fiber optic cables Fiber optical growth drivers Invest-to-Grow M&A Strategy Invest-to-Grow M&A Playbook Invest-to-Grow Proof of performance Clariant Masterbatch Acquisition Drives�Next Level Specialty Transformation Transformation Headlines Fit with Four Pillar Strategy End Market Transformation End Market Transformation Complementary Geographic Presence Slide Number 31 PolyOne + Clariant Masterbatch Business Over 85% of Adjusted EBITDA from Specialty Transaction overview Significant Synergy Opportunities Attractive Financing Structure Slide Number 37 Returning cash to shareholders�Over $1.2 Billion since 2011 Why Invest In PolyOne?
https://www.avient.com/sites/default/files/2023-05/SG Liner for Pipe Replacement - Case Study.pdf
SOURCE: Repurposing gas infrastructure for hydrogen | 2020 Siemens Energy Global (siemens-energy.com) © 2023, All Rights Reserved Avient Corporation, 33587 Walker Road, Avon Lake, Ohio USA 44012 https://www.fiber-line.com/en/ https://www.siemens-energy.com/global/en/news/magazine/2020/repurposing-natural-gas-infrastructure-for-hydrogen.html https://www.siemens-energy.com/global/en/news/magazine/2020/repurposing-natural-gas-infrastructure-for-hydrogen.html