https://www.avient.com/sites/default/files/2025-01/AVNT Dec 2022 Earnings Presentation Updated.pdf
Sales EBITDA Specialty Engineered Materials Color Additives and Inks $585M$3,635M (1) Transportation 9% Healthcare 8% 29 C O L O R , A D D I T I V E S & I N K S 2022 REVENUE | $2 .3 B ILL ION US & Canada 35% EMEA 40% Asia 20% Latin America 5% END MARKET REGION 30 Packaging 33% Consumer 22% Healthcare 9% Industrial 15% Transportation 8% Building & Construction 11% Telecommunications 1% Energy 1% Figures represent 2022 full year estimates S P E C I A LT Y E N G I N E E R E D M AT E R I A L S 2022 PRO FORMA REVENUE | $1 .3 B ILL ION END MARKET US & Canada 50% EMEA 35% Asia 15% REGION 31 Figures represent 2022 full year estimates Packaging 5% Consumer 19% Healthcare 8%Industrial 16% Transportation 10% Telecommunications 10% Energy 9% Defense 15% Building & Construction 8% Packaging 31% Consumer 28% Healthcare 8% Industrial 13% Building & Construction 5% Telecommunications 3% Energy 2% Defense 1% Asia (20% of sales) Transportation 9% 2022 PROFORMA AVIENT REGIONAL SALES BY END MARKET Packaging 29% Consumer 13% Healthcare 5% Industrial 17% Building & Construction 11% Energy 5% Defense 7% EMEA (35% of sales) Transportation 10% Packaging 14% Consumer 23% Healthcare 11% Industrial 15% Building & Construction 12% Energy 5% Defense 7% US & Canada (40% of sales) Transportation 7% Packaging 49% Consumer 22% Healthcare 8% Industrial 9% Building & Construction 6% Telecommunications 1% LATAM (5% of sales) Transportation 5% Telecommunications 3%Telecommunications 6% Figures represent 2022 full year estimates32
https://www.avient.com/sites/default/files/2023-01/AVNT Dec 2022 Earnings Presentation.pdf
Sales EBITDA Specialty Engineered Materials Color Additives and Inks $585M$3,635M (1) Transportation 9% Healthcare 8% 29 C O L O R , A D D I T I V E S & I N K S 2022 REVENUE | $2 .3 B ILL ION US & Canada 35% EMEA 40% Asia 20% Latin America 5% END MARKET REGION 30 Packaging 33% Consumer 22% Healthcare 9% Industrial 15% Transportation 8% Building & Construction 11% Telecommunications 1% Energy 1% Figures represent 2022 full year estimates S P E C I A LT Y E N G I N E E R E D M AT E R I A L S 2022 PRO FORMA REVENUE | $1 .3 B ILL ION END MARKET US & Canada 50% EMEA 35% Asia 15% REGION 31 Figures represent 2022 full year estimates Packaging 5% Consumer 19% Healthcare 8%Industrial 16% Transportation 10% Telecommunications 10% Energy 9% Defense 15% Building & Construction 8% Packaging 31% Consumer 28% Healthcare 8% Industrial 13% Building & Construction 5% Telecommunications 3% Energy 2% Defense 1% Asia (20% of sales) Transportation 9% 2022 PROFORMA AVIENT REGIONAL SALES BY END MARKET Packaging 29% Consumer 13% Healthcare 5% Industrial 17% Building & Construction 11% Energy 5% Defense 7% EMEA (35% of sales) Transportation 10% Packaging 14% Consumer 23% Healthcare 11% Industrial 15% Building & Construction 12% Energy 5% Defense 7% US & Canada (40% of sales) Transportation 7% Packaging 49% Consumer 22% Healthcare 8% Industrial 9% Building & Construction 6% Telecommunications 1% LATAM (5% of sales) Transportation 5% Telecommunications 3%Telecommunications 6% Figures represent 2022 full year estimates32
https://www.avient.com/sites/default/files/2025-01/ColorMatrix Lactra ESL Infographic.pdf
Nutritional components in dairy products are photosensitive, making them susceptible to light degradation • Light protection in dairy packaging helps maintain product integrity and extend shelf life A LIGHT BLOCKING SOLUTION THAT PROVIDES: • Light blocking and whiteness in PET dairy packaging • Protection from 2 weeks up to 12 months shelf life • Compatibility with monolayer and multilayer PET preforms • Full compatibility with rPET • Food contact approved (region dependent) • Low TiO₂ levels to increase recyclability, aligning with the emergence of white recycle streams PASTEURIZED MILK Typical shelf life 5–10 days WHITE COLOR LACTRA ESL LACTRA SX or LACTRA 4 EXTENDED SHELF LIFE MILK Typical shelf life 2 weeks–3 months UHT MILK & PRODUCTS Typical shelf life 4–12 months Lightweighting/CO2 reduction Reduced LDR – material & cost savings Improved processing performance BENEFITS OF COLORMATRIX™ LACTRA™ Improved bottle performance Compatibility with rPET Helps to Protect Performance Energy efficiency Whiteness 85–92 L* 30% less life cycle emissions Increased machinery life cycle due to reduced wear & tear 80–100% light blocking performance © 2024, All Rights Reserved Avient Corporation, 33587 Walker Road, Avon Lake, Ohio USA 44012
https://www.avient.com/sites/default/files/2022-08/AVNT Aug 2022 Presentation - Jefferies.pdf
Annual Purchases RAW MATERIAL AND SUPPLY CHAIN UPDATE Based on 2021 purchases, excludes Distribution business DYN E E MA ACQ U I S I T I O N 32 15x stronger than steel Reduces weight by 30% vs. other solutions Well-maintained global asset base poised to serve growing demand • Purchase price of $1.48B represents 11.4x multiple of 2022 EBITDA • Acquisition will expand Avient’s composites and fiber portfolio with Dyneema®, the World’s Strongest Fiber™ • $415M sales and 30%+ EBITDA margins; Immediately accretive to pro forma 2022 EPS, adding $0.35 • 1,300 patents globally, ~50% of sales patent protected • 1,000+ employees across global production network and dedicated technology centers • Composites platform will increase from $261M to $680M in revenue and from $49M to $180M in EBITDA Indicates Dyneema® location $175M (42%) $65M (16%) $175M (42%) 2022E Sales By Region ($M) (1) $0.35 EPS excludes intangible amortization (2) Based on 2022 expected results (1) (2) (2) FIT WITH FOUR PILLAR STRATEGY 33 Specialization • Innovation-led organization with tremendous intellectual property value in trademarks, patents and “know-how” • Deep history of application development and premium, leading brand with the World’s Strongest FiberTM Globalization • Global customer base with an established presence across all major geographic regions • Global technology centers complement existing Composites applications and expertise Operational Excellence • Best-in-class safety performance • Well-run and maintained asset base fit to serve future growth • Highly effective and reliable supply chain with emphasis on optimizing service to customers Commercial Excellence • Deep customer relationships extend across the value chain and drive ability to grow • Offer a full suite of services with an active role in design, development and commercialization People Experienced and talented associates with a passion for safety, specialization and winning DYNEEMA® OVERVIEW K E Y I N D U S T R I E S PERSONAL PROTECTION Military • Law Enforcement • First Responders Body Armor • Helmets • Vehicle Protection $215M MARINE & SUSTAINABLE INFRASTRUCTURE Towing / Mooring • Aquaculture • Floating Wind • Offshore Cranes $130M CONSUMER Consumer • Outdoor High Performance • Safety Equipment $70M 34 Figures reflect 2022 expected sales MIFOverview Competition Valuechain & Go-to-market Strategy Innovation Financials TECHNOLOGY 35 1,200 1,300 2,500 Avient Dyneema Combined Patents • True specialty business – the World’s Strongest Fiber™ • Deep history of application development with customers, strongest in the industry • The only UHMwPE (ultra-high molecular weight polyethylene) fiber producer that is backward integrated o Provides innovation advantage through control of all steps of the process • Complementary with our existing reinforced film expertise (PolyStrand) and engineered fiber presences (Fiber-Line) WINNING PROPERTIES Ultra high strength vs. weight Highly flexible Floats on water Chemically inert; no smell/taste and non-toxic High resistance to UV radiation Self-lubricating, with low friction One-of-a-kind technology ® FORMULATION PROCESS 36 • Like Avient, Dyneema® offers similar core competencies around formulation and material science • Technology that combines polymers and fibers to provide specialized, high performing solutions for customers • Design capabilities ensure that applications are highly customized for the specified end use DYNEEMA® IN THE VALUE CHAIN 37 UHMwPE Fiber / Tapes Military Personnel, Law Enforcement Heavy Marine, Offshore Wind Energy and Mooring, Aquaculture Outdoor, Footwear, Apparel, Inflatables • Material Science • Formulation • Service INTERMEDIATE MANUFACTURING (CUSTOMERS) OEM / APPLICATION DEMAND TRENDS 38 • Military spending and near-term demand for higher performing personal protection products (like Dyneema®) expected to increase o European NATO members annual defense spend expected to increase by up to 20%(1) o Japan aiming to almost double defense spending over the next 5 years(2) o Accelerated launch of next generation technology in North America • Policy-driven demand for sustainable energy; growth in floating offshore wind farms which require advanced, durable technology o Offshore wind expected to grow at a CAGR of 32% with the level of annual installations quadrupling over the next five years(3) • Continued investment in aquaculture as a sustainable food source(4) • Strong demand in outdoor high performance space across niche consumer applications aligns with 10% growth assumption for Avient’s Composites portfolio Sources: (1) “Funding NATO”, NATO.int (April 1, 2022) (2) “Japan Ruling Party Calls for Defense Spending Boost to 2% of GDP”, WSJ (April 21, 2022) (3) “Global Wind Report 2021”, Global Wind Energy Council (4) “Aquaculture Supports a Sustainable Earth”, NOAA Fisheries 39 A L I G N M E N T W I T H S U S T A I N A B I L I T Y G O A L S PRODUCTS AVIENT’S EXISTING COMPOSITES PORTFOLIO 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 LFT Tapes Laminates/Panels Shapes Pultrusion Engineered Fibers 40 AVIENT’S COMPOSITES PORTFOLIO SALES AND EBITDA 41 $74 $84 $216 $212 $261 $5 $10 $32 $41 $49 $180 0 50 100 150 200 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 2017 2018 2019 2020 2021 2022E $680 ($ in millions) • Dyneema® acquisition will further improve Composites EBITDA margins to 26% • Dyneema® will complement our existing portfolio with deep formulation expertise, innovative culture and global commercial presence • Composites will continue to be a key growth driver to deliver future revenue growth in excess of GDP (1) Pro forma for the acquisition of Dyneema® (1) SEGMENT DATA U.S. & Canada 50% EMEA 25% Asia 16% Latin America 9% 2021 SEGMENT, END MARKET AND GEOGRAPHY GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 23% Packaging 19% Industrial 16% Building and Construction 10% Telecommunications 4% Energy 2% END MARKET REVENUE (1) Total company sales and adjusted EBITDA of $4,819M and $581M, respectively, include intercompany sales eliminations and corporate costs $2,402M $409M $919M $164M $1,631M $94M Sales EBITDA Distribution Specialty Engineered Materials Color Additives and Inks $581M$4,819M (1) Transportation 11% Healthcare 15% 43 Packaging 34% Consumer 21% Healthcare 8% Industrial 16% Building & Construction 10% Transportation 9% Energy 1% Telecommunications 1% C O L O R , A D D I T I V E S & I N K S 2021 REVENUE | $2 .4 BILLION US & Canada 32% EMEA 40% Asia 21% Latin America 7% END MARKET REGION 44 All charts reflect 2021 financials S P E C I A LT Y E N G I N E E R E D M AT E R I A L S Consumer 27% Healthcare 10% Packaging 7% Telecommunications 16% Transportation 11% Industrial 11% Building & Construction 11% Energy 7% 2021 REVENUE | $919 MILLION END MARKET US & Canada 55% EMEA 25% Asia 20% REGION 45 All charts reflect 2021 financials D I S T R I BU T I O N Healthcare 26% Consumer 23% Packaging 5% Industrial 20% Transportation 16% Building and Construction 8% Energy 1% Telecommunications 1% US & Canada 80% Asia 3% Latin America 17% END MARKET REGION K EY SU PPL IER S 2021 REVENUE | $1 .6 BILLION 46 All charts reflect 2021 financials TOTA L C O M PA N Y R E G I O N A L S A L E S BY END MARKET Packaging 30% Consumer 26%Healthcare 13% Industrial 14% Building & Construction 5% Telecommunications 2% Energy 2% Asia (16% of sales) Transportation 8% Packaging 32% Consumer 13% Healthcare 5% Industrial 17% Building & Construction 12% Telecommunications 5% Energy 4% EMEA (25% of sales) Transportation 12% 47 Consumer 25% Healthcare 19% Packaging 10% Industrial 17% Building & Construction 10% Telecommunications 4% Energy 2% US & Canada (50% of sales) Transportation 13% Packaging 38% Consumer 33% Healthcare 8% Industrial 10% Building & Construction 5% Telecommunications 1% LATAM (9% of sales) Transportation 5% All charts reflect 2021 financials Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special items, to assess performance and facilitate comparability of results.
https://www.avient.com/sites/default/files/2021-05/avnt-first-quarter-2021-earnings-presentation.pdf
This innovation drives performance and is reflective of consistent, strategic investments in our portfolio…and people. 2020 Pro forma $991 $86 Sustainable Solutions 15 11% 6 Healthcare 28 22% 6 Composites 6 10% 3 Growth in Emerging Regions 44 30% 10 Other 53 10% 7 Sub-total $1,137 15% $118 FX Impact 25 - 2 Synergies - - 11 Incentives, Travel, Other Employee Costs - - (8) 2021 Actual $1,162 17% $123 Q1 2021 ORGANIC SALES AND OPERATING INCOME (TOTAL COMPANY) 7 (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition Sales Growth Rate Adjusted Operating Income$ millions (1) 8 Electrical & Electronics Building & Construction Wire & Cable Transportation Industrial Healthcare Packaging Consumer Q1 2020PF Q1 2021 (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition (2) Financial information is presented on a constant currency basis (1,2) (42% of total revenue) (58% of total revenue) Q1 END MARKET SALES PERFORMANCE +17% +14% +8% +10% +8% +22% +5% +24% Q 2 AN D FU LL Y EA R 2021 O U TLO O K $69 $112 2020PF 2021E $0.42 $0.80 2020PF 2021E ORGANIC GROWTH PROJECTIONS – Q2 (TOTAL COMPANY) 10 Sales Adjusted Operating Income $870 $1,100 2020PF 2021E + 26% Adjusted EPS + 62% + 90% (in millions) (in millions) (1) (1) (1) (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition FULL YEAR GUIDANCE INCREASED 11 Sales Adj.
Whether an additional line at an existing manufacturing plant, or a new facility in a growing region, we ramp-up quickly and cost-efficiently. 18 Capex / Revenue 2021E (%) AVIENT IS ASSET LIGHT Avient Specialty Formulators Other Chemical/Specialty Companies 2 3 2 2 2 3 3 4 3 3 3 4 4 5 5 5 6 7 7 8 24 A vi en t A vi en t (E xc l.
APPENDIX Performance Additives 15% Pigments 15% TiO2 12% Dyestuffs 4%Polyethylene 10% Nylon 5% Polypropylene 4% Other Raw Materials 29% Styrenic Block Copolymer 6% ~1/3 hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials 23 • Exiting 2020, the majority of hydrocarbon based raw material markets were experiencing price inflation and tight inventory • Winter Storm Uri in the Gulf Coast caused further stress on the situation for 2021 • Raw materials most impacted include polyethylene, polypropylene and nylon • We purchase over 8,000 different raw materials to formulate our customized solutions and unique specifications Annual Purchases RAW MATERIAL UPDATE Based on 2020 pro forma purchases, excludes Distribution SEGMENT DATA U.S. & Canada 50% EMEA 26% Asia 16% Latin America 8% 2020 SEGMENT, END MARKET AND GEOGRAPHY 25 GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 23% Packaging 21%Industrial 15% Wire & Cable 6% Building & Construction 6% Electrical & Electronics 4% END MARKET REVENUE Transportation 10% Healthcare 15% All data reflects 2020 Pro forma for acquisition of the Clariant Masterbatch business. (1) The total company sales and EBITDA of $3,783M and $457M, respectively, include intercompany sales eliminations and corporate costs $2,043M $331M $709M $124M $1,110M $70M Sales EBITDA Distribution Specialty Engineered Materials Color Additives and Inks $457M$3,783M (1) Packaging 35% Consumer 23% Healthcare 8% Industrial 14% Building & Construction 8% Transportation 7% Wire & Cable 3% Electrical & Electronics 2% C O L O R , A D D I T I V E S & I N K S 2020 PF REVENUE | $2 .0 BILLION US & Canada 31% EMEA 40% Asia 22% Latin America 7% END MARKET REGION 26 2020 figures Pro forma for acquisition of the Clariant Masterbatch business S P E C I A LT Y E N G I N E E R E D M AT E R I A L S Consumer 24% Healthcare 10% Packaging 6% Wire & Cable(1) 24% Electrical & Electronics 13% Transportation 11% Industrial 10% Building & Construction 2% 2020 REVENUE | $709 MILLION END MARKET US & Canada 58% EMEA 23% Asia 19% REGION 27 (1) Approximately 50% of Wire and Cable sales are associated with Fiber Optic Cabling DI S TR IBU T I ON 2020 REVENUE | $1 .1 B ILL ION Healthcare 29% Consumer 25% Packaging 2% Industrial 20% Transportation 14% Electrical & Electronics 5% Building & Construction 4% Wire & Cable 1% US & Canada 82% Asia 3% Latin America 15% END MARKET REGION K E Y S U P P L I ER S 28 TOTA L C O M PA N Y R E G I O N A L S A L E S BY END MARKET Packaging 32% Consumer 27% Healthcare 12% Industrial 6% Wire & Cable 6% Building & Construction 4% Electrical & Electronics 9% Asia (16% of sales) Transportation 4% Packaging 34% Consumer 16%Healthcare 5% Industrial 17% Wire & Cable 10% Building & Construction 8% Electrical & Electronics 3% EMEA (26% of sales) Transportation 7% 2020 figures Pro forma for acquisition of the Clariant Masterbatch business 29 Transportation 10% Consumer 26% Healthcare 19% Packaging 13% Industrial 16% Wire & Cable 7% Building & Construction 5% Electrical & Electronics 4% US & Canada (50% of sales) Packaging 45% Consumer 29% Healthcare 6% Industrial 8% Building & Construction 3% Electrical & Electronics 2% Wire & Cable 1% LATAM (8% of sales) Transportation 6% Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Three Months Ended March 31, 2021 Reconciliation to Condensed Consolidated Statements of Income GAAP Results Special Items Adjusted Results Income from continuing operations before income taxes $ 102.6 $ 2.4 $ 105.0 Income tax expense - GAAP (22.9) — (22.9) Income tax impact of special items — (0.9) (0.9) Tax adjustments — 1.1 1.1 Net income attributable to noncontrolling interests (0.4) — (0.4) Net income from continuing operations attributable to Avient shareholders $ 79.3 $ 2.6 $ 81.9 Net income / EPS $ 0.86 0.03 $ 0.89 Weighted-average diluted shares 92.2 92.2 92.2 Reconciliation to Consolidated Statements of Income Three Months Ended March 31, 2021 Operating income - GAAP $ 120.4 Special items in operating income 2.4 Adjusted Operating income $ 122.8 1 Business Segment Operations Three Months Ended March 31, Year Ended December 31, 2021 2020 2020 2019 2018 Sales: Color, Additives and Inks $ 609.3 $ 256.5 $ 1,502.9 $ 1,003.8 $ 1,046.5 Specialty Engineered Materials 216.5 185.3 708.8 745.7 645.8 Distribution 362.7 289.5 1,110.3 1,192.2 1,265.4 Corporate and eliminations (26.2) (19.8) (79.9) (79.0) (76.7) Sales $ 1,162.3 $ 711.5 $ 3,242.1 $ 2,862.7 $ 2,881.0 Gross margin: Color, Additives and Inks $ 197.5 $ 89.4 $ 484.4 $ 338.4 $ 353.4 Specialty Engineered Materials 64.7 52.6 207.6 200.2 171.7 Distribution 39.3 33.6 124.0 132.1 125.8 Corporate and eliminations 0.9 (4.1) (31.7) (13.5) (26.1) Gross margin $ 302.4 $ 171.5 $ 784.3 $ 657.2 $ 624.8 Selling and administrative expense: Color, Additives and Inks $ 108.7 $ 48.9 $ 303.6 $ 191.0 $ 194.9 Specialty Engineered Materials 30.5 30.3 113.2 116.5 99.4 Distribution 15.3 14.2 54.5 56.7 54.3 Corporate and eliminations 27.5 25.3 123.7 136.2 97.6 Selling and administrative expense $ 182.0 $ 118.7 $ 595.0 $ 500.4 $ 446.2 Operating income: Color, Additives and Inks $ 88.8 $ 40.5 $ 180.8 $ 147.4 $ 158.5 Specialty Engineered Materials 34.2 22.3 94.4 83.7 72.3 Distribution 24.0 19.4 69.5 75.4 71.5 Corporate and eliminations (26.6) (29.4) (155.4) (149.7) (123.7) Operating income $ 120.4 $ 52.8 $ 189.3 $ 156.8 $ 178.6 Earnings before interest, taxes, depreciation and amortization (EBITDA): Color, Additives and Inks $ 116.2 $ 51.4 $ 255.9 $ 190.1 $ 202.8 Specialty Engineered Materials 42.0 29.8 124.4 113.2 95.5 Distribution 24.2 19.5 70.2 75.9 72.2 Corporate and eliminations (24.9) (28.0) (146.2) (144.3) (119.3) Other income, net 1.5 1.6 24.3 12.1 (12.9) EBITDA $ 159.0 $ 74.3 $ 328.6 $ 247.0 $ 238.3 EBITDA as a % of Sales: Color, Additives and Inks 19.1 % 20.0 % 17.0 % 18.9 % 19.4 % Specialty Engineered Materials 19.4 % 16.1 % 17.6 % 15.2 % 14.8 % Distribution 6.7 % 6.7 % 6.3 % 6.4 % 5.7 % 2 Reconciliation of Pro Forma EBITDA - Color, Additives and Inks Three Months Ended March 31, Year Ended December 31, 2021 2020 2020 2019 2018 Sales: Color, Additives and Inks $ 609.3 $ 256.5 $ 1,502.9 $ 1,003.8 $ 1,046.5 Clariant MB pro forma adjustments(1) — 279.4 540.4 1,118.6 1,209.8 Pro forma sales $ 609.3 $ 535.9 $ 2,043.3 $ 2,122.4 $ 2,256.3 Operating income: Color, Additives and Inks $ 88.8 $ 40.5 $ 180.8 $ 147.4 $ 158.5 Clariant MB pro forma adjustments(1) — 23.0 45.0 72.9 80.3 Pro forma operating income $ 88.8 $ 63.5 $ 225.8 $ 220.3 $ 238.8 Depreciation & amortization: Color, Additives and Inks $ 27.4 $ 10.9 $ 75.1 $ 42.7 $ 44.3 Clariant MB pro forma adjustments(1) — 15.1 30.1 60.3 61.2 Pro forma depreciation & amortization $ 27.4 $ 26.0 $ 105.2 $ 103.0 $ 105.5 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA): Color, Additives and Inks $ 116.2 $ 51.4 $ 255.9 $ 190.1 $ 202.8 Clariant MB pro forma adjustments(1) — 38.1 75.1 133.2 141.5 Pro forma EBITDA $ 116.2 $ 89.5 $ 331.0 $ 323.3 $ 344.3 Pro forma EBITDA as a % of Sales 19.1 % 16.7 % 16.2 % 15.2 % 15.3 % Three Months Ended March 31, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient Sales $ 711.5 $ — $ 711.5 $ 279.4 $ 990.9 Operating income 52.8 9.7 62.5 23.0 85.5 Interest expense, net (9.4) — (9.4) (12.8) (22.2) Other income, net 1.6 (0.1) 1.5 — 1.5 Income taxes (11.9) (1.0) (12.9) (2.4) (15.3) Net income from continuing operations attributable to Avient shareholders $ 33.1 $ 8.6 $ 41.7 $ 7.8 $ 49.5 Weighted average diluted shares 86.7 Impact to diluted shares from January 2020 equity offering 6.1 Weighted average diluted shares 92.8 EPS $ 0.53 (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 3 Three Months Ended June 30, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(2) Pro Forma Adjusted Avient Sales $ 609.1 $ — $ 609.1 $ 261.1 $ 870.2 Operating income $ 38.0 $ 9.0 $ 47.0 $ 22.0 $ 69.0 Interest expense, net (16.2) — (16.2) (5.3) (21.5) Other income, net 9.5 (0.3) 9.2 — 9.2 Income taxes (7.9) 0.7 (7.2) (3.8) (11.0) Net income attributable to non controlling interests (0.4) — (0.4) — (0.4) Net income from continuing operations attributable to Avient shareholders $ 23.0 $ 9.4 $ 32.4 $ 12.9 $ 45.3 Weighted average diluted shares 91.8 Impact to diluted shares from January 2020 equity offering 15.3 Pro forma weighted average diluted shares 107.1 Pro forma adjusted EPS $ 0.42 (2) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition Year Ended December 31, Reconciliation to Adjusted EBITDA 2020 2019 2018 Net income from continuing operations – GAAP $ 133.8 $ 75.7 $ 87.4 Income tax expense 5.2 33.7 14.4 Interest expense 74.6 59.5 62.8 Debt extinguishment cost — — 1.1 Depreciation and amortization from continuing operations 115.0 78.1 72.6 EBITDA $ 328.6 $ 247.0 $ 238.3 Special items, before tax 66.2 61.7 59.5 Interest expense included in special items (10.1) — — Accelerated depreciation included in special items (3.2) — (3.0) Adjusted EBITDA $ 381.6 $ 308.7 $ 294.8 4 Year Ended December 31, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(3) Pro Forma Adjusted Avient Sales $ 3,242.1 $ — $ 3,242.1 $ 540.4 $ 3,782.5 Operating income $ 189.3 $ 73.7 $ 263.0 $ 45.0 $ 308.0 Interest expense, net (74.6) 10.1 (64.5) (18.1) (82.6) Other income, net 24.3 (17.6) 6.7 — 6.7 Income taxes (5.2) (41.4) (46.6) (6.2) (52.8) Net income attributable to noncontrolling interests (1.8) — (1.8) — (1.8) Net income from continuing operations attributable to Avient shareholders $ 132.0 $ 24.8 $ 156.8 $ 20.7 $ 177.5 Weighted average diluted shares 90.6 Impact to diluted shares from January 2020 equity offering 1.5 Pro forma weighted average diluted shares 92.1 Pro forma adjusted EPS $ 1.93 Reconciliation of Pro Forma Adjusted EBITDA from continuing operations Operating income and other income, net $ 213.6 $ — $ 56.1 $ 269.7 $ 45.0 $ — $ 314.7 Depreciation and amortization 115.0 (3.2) 111.8 30.1 141.9 EBITDA from continuing operations $ 328.6 $ 52.9 $ 381.5 $ 75.1 $ 456.6 Year Ended December 31, 2019 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient Sales $ 2,862.7 $ — $ 2,862.7 $ 1,118.6 $ 3,981.3 Operating income $ 156.8 $ 71.7 $ 228.5 $ 72.9 $ 301.4 Interest expense, net (59.5) — (59.5) (33.4) (92.9) Other income, net 12.1 (10.0) 2.1 — 2.1 Income taxes (33.7) (5.9) (39.6) (9.1) (48.7) Net income attributable to noncontrolling interests (0.2) — (0.2) — (0.2) Net income from continuing operations attributable to Avient shareholders $ 75.5 $ 55.8 $ 131.3 $ 30.4 $ 161.7 Weighted average diluted shares 77.7 Impact to diluted shares from January 2020 equity offering 15.3 Pro forma weighted average diluted shares 93.0 Pro forma adjusted EPS $ 1.74 Reconciliation of Pro Forma Adjusted EBITDA from continuing operations Operating income and other income, net $ 168.9 $ — $ 61.7 $ 230.6 $ 72.9 $ — $ 303.5 Depreciation and amortization 78.1 — 78.1 60.3 138.4 EBITDA from continuing operations $ 247.0 $ 61.7 $ 308.7 $ 133.2 $ 441.9 (3) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 5 AVNT First Quarter 2021 Earnings Presentation no recs.pdf AVNT First Quarter 2021 Earnings Presentation.pdf AVNT First Quarter 2021 Earnings Presentation.pdf AVNT First Quarter 2021 Earnings Presentation.pdf 4.29 127pm Q1 21 IR Deck Version non-GAAP Recs (002).pdf
https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202012%2520-%2520Operational%2520Excellence.pdf
Kedrowski Page 38 Operational Excellence • Operational Excellence is a never-ending quest for improvement in response to the voice of our customers and shareholders • It is all about strengthening our capabilities to deliver value flawlessly to our customers deliver value flawlessly to our customers • It challenges us to enhance our productivity, profitability, and efficiency in all phases of our business, from safety to quality to waste elimination to environmental stewardship Page 39 Lean Six Sigma Initiative • In 2009, Lean Six Sigma was launched to improve execution skills across all businesses, functions, and global regions • A company-wide diagnostic was conducted, resulting in identification of six conducted, resulting in identification of six strategic improvement platforms • Financial targets were estimated, resources identified and trained results delivered , Page 40 PolyOne OSHA Recordable Incidence Rate 4 5 6 5.1 Safety Performance *Rubber And Plastics Manufacturing Industry (2010 Bureau of Labor Statistics). 0 1 2 3 2005 2006 2007 2008 2009 2010 2011 Industry Average 1.4 1.3 1.1 1.1 0.85 0.65 0.57 Page 41 • Exemplary on-time delivery • Best-in-class working capital % of sales 81% 87% 88% 95% 93% 92% 94% 2005 2006 2007 2008 2009 2010 2011 On-Time Delivery* Lean Six Sigma Delivering Results • Approximately $200M in cash driven by working capital improvements 16.2% 14.4% 18.9% 11.7% 9.6% 9.6% 2006 2007 2008 2009 2010 2011 WC % of Sales 2005 2006 2007 2008 2009 2010 2011 *As measured to customer request date Page 42 40.0% Percent of Associates Trained in LSS World’s Best Start-up Program in 2009* World’s Best Business Process Excellence Program in 2012* Award-Winning Lean Six Sigma Program *Both awards received from International Quality and Productivity Center 16.5% 40.0% 2009 2011 Page 43 • Globally leverage strategic supplier management best practices • Implement world class demand management processes Critical Imperatives • Improve operational reliability and efficiencies • Optimize global freight management Drive 50 – 100 basis points of gross margin expansion per year Page 44 Page 45
https://www.avient.com/sites/default/files/2022-05/AVNT May IR Presentation w Non GAAP Recs.pdf
FX) $429 $490 2021 2022E $3.05 $3.50 2021 2022E FY 2022 PERFORMANCE (TOTAL COMPANY) 16 $4,819 $5,100 2021 2022E + 6% (+ 8% excluding FX) Adjusted EPS + 14% (+ 17% excluding FX) + 15% (+ 18% excluding FX) (in millions) (in millions) Sales Adjusted Operating Income 17 CASH FLOW / LEVERAGE ($ millions) 2022E Cash Flow from Operating Activities 400$ Less: Run-Rate CapEx (90) CapEx for Clariant Integration (10) CapEx for IT System Upgrade (15) Total CapEx (115) Free Cash Flow 285$ Adjusted EBITDA 635$ Net Debt / Adjusted EBITDA 1.7x DYN E E MA ACQ U I S I T I O N 19 15x stronger than steel Reduces weight by 30% vs. other solutions Well-maintained global asset base poised to serve growing demand • Purchase price of $1.48B represents 11.4x multiple of 2022 EBITDA • Acquisition will expand Avient’s composites and fiber portfolio with Dyneema®, the World’s Strongest Fiber™ • $415M sales and 30%+ EBITDA margins; Immediately accretive to pro forma 2022 EPS, adding $0.35 • 1,300 patents globally, ~50% of sales patent protected • 1,000+ employees across global production network and dedicated technology centers • Composites platform will increase from $261M to $680M in revenue and from $49M to $180M in EBITDA Indicates Dyneema® location $175M (42%) $65M (16%) $175M (42%) 2022E Sales By Region ($M) (1) $0.35 EPS excludes intangible amortization (2) Based on 2022 expected results (1) (2) (2) FIT WITH FOUR PILLAR STRATEGY 20 Specialization • Innovation-led organization with tremendous intellectual property value in trademarks, patents and “know-how” • Deep history of application development and premium, leading brand with the World’s Strongest FiberTM Globalization • Global customer base with an established presence across all major geographic regions • Global technology centers complement existing Composites applications and expertise Operational Excellence • Best-in-class safety performance • Well-run and maintained asset base fit to serve future growth • Highly effective and reliable supply chain with emphasis on optimizing service to customers Commercial Excellence • Deep customer relationships extend across the value chain and drive ability to grow • Offer a full suite of services with an active role in design, development and commercialization People Experienced and talented associates with a passion for safety, specialization and winning DYNEEMA® OVERVIEW K E Y I N D U S T R I E S PERSONAL PROTECTION Military • Law Enforcement • First Responders Body Armor • Helmets • Vehicle Protection $215M MARINE & SUSTAINABLE INFRASTRUCTURE Towing / Mooring • Aquaculture • Floating Wind • Offshore Cranes $130M CONSUMER Consumer • Outdoor High Performance • Safety Equipment $70M 21 Figures reflect 2022 expected sales MIFOverview Competition Valuechain & Go-to-market Strategy Innovation Financials TECHNOLOGY 22 1,200 1,300 2,500 Avient Dyneema Combined Patents • True specialty business – the World’s Strongest Fiber™ • Deep history of application development with customers, strongest in the industry • The only UHMwPE (ultra-high molecular weight polyethylene) fiber producer that is backward integrated o Provides innovation advantage through control of all steps of the process • Complementary with our existing reinforced film expertise (PolyStrand) and engineered fiber presences (Fiber-Line) WINNING PROPERTIES Ultra high strength vs. weight Highly flexible Floats on water Chemically inert; no smell/taste and non-toxic High resistance to UV radiation Self-lubricating, with low friction One-of-a-kind technology ® FORMULATION PROCESS 23 • Like Avient, Dyneema® offers similar core competencies around formulation and material science • Technology that combines polymers and fibers to provide specialized, high performing solutions for customers • Design capabilities ensure that applications are highly customized for the specified end use DYNEEMA® IN THE VALUE CHAIN 24 UHMwPE Fiber / Tapes Military Personnel, Law Enforcement Heavy Marine, Offshore Wind Energy and Mooring, Aquaculture Outdoor, Footwear, Apparel, Inflatables • Material Science • Formulation • Service INTERMEDIATE MANUFACTURING (CUSTOMERS) OEM / APPLICATION DEMAND TRENDS 25 • Military spending and near-term demand for higher performing personal protection products (like Dyneema®) expected to increase o European NATO members annual defense spend expected to increase by up to 20%(1) o Japan aiming to almost double defense spending over the next 5 years(2) o Accelerated launch of next generation technology in North America • Policy-driven demand for sustainable energy; growth in floating offshore wind farms which require advanced, durable technology o Offshore wind expected to grow at a CAGR of 32% with the level of annual installations quadrupling over the next five years(3) • Continued investment in aquaculture as a sustainable food source(4) • Strong demand in outdoor high performance space across niche consumer applications aligns with 10% growth assumption for Avient’s Composites portfolio Sources: (1) “Funding NATO”, NATO.int (April 1, 2022) (2) “Japan Ruling Party Calls for Defense Spending Boost to 2% of GDP”, WSJ (April 21, 2022) (3) “Global Wind Report 2021”, Global Wind Energy Council (4) “Aquaculture Supports a Sustainable Earth”, NOAA Fisheries 26 A L I G N M E N T W I T H S U S T A I N A B I L I T Y G O A L S PRODUCTS AVIENT’S EXISTING COMPOSITES PORTFOLIO 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 LFT Tapes Laminates/Panels Shapes Pultrusion Engineered Fibers 27 AVIENT’S COMPOSITES PORTFOLIO SALES AND EBITDA 28 $74 $84 $216 $212 $261 $5 $10 $32 $41 $49 $180 0 50 100 150 200 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 2017 2018 2019 2020 2021 2022E $680 ($ in millions) • Dyneema® acquisition will further improve Composites EBITDA margins to 26% • Dyneema® will complement our existing portfolio with deep formulation expertise, innovative culture and global commercial presence • Composites will continue to be a key growth driver to deliver future revenue growth in excess of GDP (1) Pro forma for the acquisition of Dyneema® (1) DISTRIBUTION DIVESTITURE CONSIDERATIONS DISTRIBUTION HIGHLIGHTS 30 $21 $57 $69 $94 $105 0 50 100 150 2006 2011 2016 2021 2022E • Leading North American Distribution business with longstanding blue-chip supplier and customer relationships • Commercial excellence and regulatory knowledge have grown healthcare portfolio to over 25% of sales and positioned business for long-term growth • Highly specialized portfolio of engineered polymers along with sustainable solution offerings • Leading digital capabilities through Avient Now, allowing enhanced visibility and 24/7 interface with customers • 98% free cash flow conversion drives greater than 30% after-tax return on invested capital (ROIC) • Potential divestiture allows us to remain modestly leveraged with net debt to adjusted EBITDA expected to be 2.9x and positions us for further specialty growth in the future EBITDA (in $M) DYNEEMA® TRANSACTION OVERVIEW 31 - $1.48B net purchase price - Represents 11.4x expected 2022 EBITDA - Committed financing in place - Permanent financing to be combination of available cash on-hand, new Senior Unsecured Notes, new Senior Secured Term Loan - Potential proceeds from Distribution divestment could be used to pay down near-term maturing debt - Closing expected in second half of 2022, subject to regulatory approvals and certain customary closing conditions Transaction Value Financing Closing Conditions / Timing CAPITAL STRUCTURE / LEVERAGE 32 • Financing commitments secured from Morgan Stanley and J.P.
Whether an additional line at an existing manufacturing plant, or a new facility in a growing region, we ramp-up quickly and cost-efficiently. 43 Capex / Revenue 2022E (%) AVIENT IS ASSET LIGHT Avient Specialty Formulators Other Chemical/Specialty Companies 2 3 2 2 2 3 4 3 3 5 5 7 7 8 11 Av ie nt Av ie nt P F FU L KW R PP G R PM AV Y FM C H U N H XL EC L EM N C E AS H SC L Source: Peer data per Bloomberg market data as of April 21, 2022.
OUR VALUATION VERSUS PEERS Avient Specialty Formulators Other Chemical/Specialty Companies 5.4 8.5 10.1 9.8 13.8 12.8 12.1 11.8 10.2 21.0 19.2 16.8 13.7 13.6 8.8 8.7 8.7 8.3 8.0 5.6 Av ie nt (2 01 1) Av ie nt (2 01 6) Av ie nt (2 02 1) Av ie nt (T od ay ) R PM PP G KW R AV Y FU L AL B EC L H XL AS H FM C BN R EM N U N VR C E SC L H U N Historic Multiple APPENDIX Performance Additives 15% Pigments 13% TiO2 11% Dyestuffs 3%Polyethylene 12% Nylon 6% Polypropylene 5% Other Raw Materials 30% Styrenic Block Copolymer 5% ~40% hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials 48 • Significant raw material price inflation and tight inventory continued in Q1 2022 o The average cost of hydrocarbon based materials was up 30% o The average cost of non-hydrocarbon based materials was up 20% • Additionally, we continued to experience other supply chain challenges during Q1 related to raw material spot purchases, freight constraints and productivity loss as a result of these shortages Annual Purchases RAW MATERIAL AND SUPPLY CHAIN UPDATE Based on 2021 purchases, excludes Distribution business SEGMENT DATA U.S. & Canada 50% EMEA 25% Asia 16% Latin America 9% 2021 SEGMENT, END MARKET AND GEOGRAPHY 50 GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 23% Packaging 19% Industrial 16% Building and Construction 10% Telecommunications 4% Energy 2% END MARKET REVENUE (1) Total company sales and adjusted EBITDA of $4,819M and $581M, respectively, include intercompany sales eliminations and corporate costs $2,402M $409M $919M $164M $1,631M $94M Sales EBITDA Distribution Specialty Engineered Materials Color Additives and Inks $581M$4,819M (1) Transportation 11% Healthcare 15% Packaging 34% Consumer 21% Healthcare 8% Industrial 16% Building & Construction 10% Transportation 9% Energy 1% Telecommunications 1% C O L O R , A D D I T I V E S & I N K S 2021 REVENUE | $2 .4 BILLION US & Canada 32% EMEA 40% Asia 21% Latin America 7% END MARKET REGION 51 All charts reflect 2021 financials S P E C I A LT Y E N G I N E E R E D M AT E R I A L S Consumer 27% Healthcare 10% Packaging 7% Telecommunications 16% Transportation 11% Industrial 11% Building & Construction 11% Energy 7% 2021 REVENUE | $919 MILLION END MARKET US & Canada 55% EMEA 25% Asia 20% REGION 52 All charts reflect 2021 financials DI S T RI BU T I O N Healthcare 26% Consumer 23% Packaging 5% Industrial 20% Transportation 16% Building and Construction 8% Energy 1% Telecommunications 1% US & Canada 80% Asia 3% Latin America 17% END MARKET REGION K EY SU PPL IER S 2021 REVENUE | $1 .6 BILLION 53 All charts reflect 2021 financials TOTA L C O M PA N Y R E G I O N A L S A L E S BY END MARKET Packaging 30% Consumer 26%Healthcare 13% Industrial 14% Building & Construction 5% Telecommunications 2% Energy 2% Asia (16% of sales) Transportation 8% Packaging 32% Consumer 13% Healthcare 5% Industrial 17% Building & Construction 12% Telecommunications 5% Energy 4% EMEA (25% of sales) Transportation 12% 54 Consumer 25% Healthcare 19% Packaging 10% Industrial 17% Building & Construction 10% Telecommunications 4% Energy 2% US & Canada (50% of sales) Transportation 13% Packaging 38% Consumer 33% Healthcare 8% Industrial 10% Building & Construction 5% Telecommunications 1% LATAM (9% of sales) Transportation 5% All charts reflect 2021 financials Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special items, to assess performance and facilitate comparability of results.
https://www.avient.com/sites/default/files/2020-12/therma-tech-processing-guide.pdf
Avoid placing gates in thin regions of the part.
It is best for material to flow from thick to thin regions in the part.
https://www.avient.com/sites/default/files/resources/GHS%2520MSDS%2520Updates%2520Letter.pdf
By the deadline of June 2015 for North America and Europe, all MSDSs in these regions will have been converted to the new format SDS.
https://www.avient.com/sites/default/files/resources/11.30.18%2520Investor%2520Presentation%2520V1.pdf
Leverage PolyOne’s global reach Phase 1 Phase 2 Phase 3 18-20% operating margins Invest in commercial resources I N V E S T - T O - G R O W P R O O F O F P E R F O R M A N C E PolyOne Corporation 23 Commercial Resources Operating Income ($ in millions) Operating Margins 243 335 At Acquisition Today $36 $90 At Acquisition Today 11% 20% At Acquisition Today Established Acquisitions (> 7 years) + 40% + 150% + 900 bps I N V E S T - T O - G R O W D R I V I N G T H E F U T U R E PolyOne Corporation 24 Commercial Resources Operating Income ($ in millions) Operating Margins 113 144 206 At Acquisition Today Goal $16 $18 $60 At Acquisition Today Goal 7% 8% 18-20% At Acquisition Today Goal Recent Acquisitions PolyOne Corporation 25 Average Company Size # of Possibilities Rationale 250 • Local to regional footprint • Niche technology focus • Concentrated customer base $50M–$200M 150 • Regional to global footprint • 1–3 specialty technologies • Diversified customer base >$200M 30 • Global footprint with local service • Diverse specialty technologies • Highly diversified customer & market portfolio S T R O N G P I P E L I N E D R I V E N B Y F R A G M E N T E D M A R K E T $0 $150 $300 $450 $600 $750 2011 2012 2013 2014 2015 2016 2017 2018 $820M R E T U R N I N G C A S H T O S H A R E H O L D E R S O V E R $ 1 B I L L I O N S I N C E 2 0 1 1 PolyOne Corporation $0.16 $0.20 $0.24 $0.32 $0.40 $0.48 $0.58 $0.70 $0.78 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 3-Year Dividend Plan Cumulative Share Repurchases (In millions) Increasing Annual Dividend 26 6.3% 14.0% 15.0% 16-17% 2009 2017 Platinum Vision Updated Expectations R O I C D R I V E S S H A R E H O L D E R R E T U R N PolyOne Corporation 27 PolyOne Corporation 28 W H Y I N V E S T I N P O L Y O N E ?
T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y Growing leadership position in attractive markets Innovation, technology and service are differentiators Capital management is a strength: Record-setting cash generation to continue for years Expand ROIC while increasing invested capital Proven acquisition strategy with robust pipeline Commercial investments are fueling momentum and generating organic growth 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 29 T A L E N T D E V E L O P M E N T PolyOne Corporation 30 Leadership Program Participants 2012 2013 2014 2015 47 0 86 2016 2018 125 169 315 Campus Hires 2008 2011 2014 2017 0 25 90 47 PolyOne LSS Blackbelts 2008 2011 2014 2018 0 67 220 147 2018 141 A U N I Q U E C U S T O M E R E X P E R I E N C E Industrial Design IQ DESIGN LABS PolyOne Corporation 31 Material & Color Expertise Manufacturing Expertise 3 14 2014 2017 Industrial designers $0 $7M 2014 2017 $4M $40M 2014 2017 Opportunity funnel New business revenue LSS CUSTOMER FIRST PolyOne Corporation 32 Customer Projects Enables sales growth by building more intimate customer relationships, giving us insight to customers’ needs, with a service that is not easily replicated 2014 2017 2 85 3 D P R I N T I N G B R I N G I N G N E W I D E A S T O L I F E PolyOne Corporation 33 Enables validation of fit and function Shortens design cycle and time to market Avoids tooling rework Drives innovation Delivers substantial customer value PolyOne Corporation 34 From concept to production M O N T H M O N T H M O N T H M O N T H M O N T H M O N T H 99.9% Reduction in turnaround time Traditional Timeline up to 24 weeks PolyOne ColorMatrix Select™ 6 hours Innovative system for processors and OEMs to develop colors in real time Complete system that provides customers with the freedom to match, prototype and produce color entirely within their own facility C O L O R M A T R I X S E L E C T ™ “Being able to create color and produce parts in 1 day is unheard of in this industry” -CEO, Industry Leader I N N O V A T I N G W I T H P O L Y O N E PolyOne Corporation 35 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 36 Solid Colorants Performance Additives Screen Printing Inks Liquid Colorants Packaging 27% Industrial 14% Textiles 12% Building & Construction 10% Wire & Cable 10%Transportation 8% Consumer 7% Healthcare 6% Electrical & Electronics 3% Appliance 3% Operating Income & MarginRevenue by Region C O L O R , A D D I T I V E S & I N K S 2 0 1 7 R E V E N U E | $ 8 9 3 M I L L I O N $4 $25 $104 $139 0.9% 5.5% 12.2% 15.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20 30 40 50 60 70 80 90 100 110 120 130 140 150 2005 2009 2013 2017 PolyOne Corporation 37 Europe 32% United States 46% Asia 15% Canada 1% Mexico 4% Brazil 2% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 38 Engineered Formulations Advanced Composites Thermoplastic Elastomers Consumer 20% Transportation 19% Wire & Cable 13% Healthcare 11% Industrial 8% Packaging 7% Appliance 4% Building & Construction 3% Electrical & Electronics 15% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S Revenue by Region Operating Income & Margin 2 0 1 7 R E V E N U E | $ 6 2 4 M I L L I O N PolyOne Corporation 39 $21 $57 $76 0.1% 5.1% 9.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 20 30 40 50 60 70 80 2005 2009 2013 2017 Europe 28% United States 48% Asia 22% Canada 2% 12.1% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 40 Specialty Vinyl Solutions Healthcare Formulations Smart Device Materials Flame Retardant Polymers Building & Construction 30% Industrial 18% Transportation 16% Wire & Cable 15% Appliance 7% Packaging 5% Consumer 5% Electrical & Electronics 3% Healthcare 1% Asia 2% United States 77% Mexico 5% Canada 16% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S Operating Income & MarginRevenue by Region 2 0 1 7 R E V E N U E | $ 7 2 1 M I L L I O N $40 $24 $56 $77 4.6% 3.6% 7.2% 10.7% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 0 10 20 30 40 50 60 70 80 90 100 2005 2009 2013 2017 PolyOne Corporation 41 $886 $668 $773 $721Sales D I S T R I B U T I O N E N D M A R K E T S & S U P P L I E R S PolyOne Corporation 42 Transportation 23% Healthcare 22% Industrial 18% Consumer 15% Appliance 7% Electrical & Electronics 6% Building & Construction 4% Packaging 3% Wire & Cable 2% $20 $25 $63 $73 2.9% 4.0% 5.9% 6.3% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 15 25 35 45 55 65 75 2005 2009 2013 2017 Operating Income & Margin2017 Revenue | $1.2 Billion http://www.polyone.com/Pages/VariationRoot.aspx T A R G E T E N D M A R K E T S & A P P L I C A T I O N E X A M P L E S PolyOne Corporation 43 Thermally Conductive Technologies Chemical Resistant Technologies Polymer Colorants Elastomeric Grips and Handles Structural Composites Antimicrobial Technologies Anti-Counterfeiting Technologies Target End Markets… Healthcare Catheter Technologies Under-hood Components Target End Markets… Automotive Interior Structural Components Sound & Vibration Management Roof Systems Air Management Electronics and Cameras Lighting Exterior / Interior Trim Braces & Brackets Fasteners Seals & Flaps Target End Markets… Consumer Thermally Conductive Components Polymer Colorants Elastomeric Grips and Handles Structural Composite Components Oxygen Scavenger Technologies Laser Marking Additives Antistatic Technologies UV Light Barrier Technologies Cap & Closure Colorants Process Optimization Technologies Antioxidant Technologies Density Modified Technologies Target End Markets… Packaging Impart weight, sound and metallic finish to caps and closures for cosmetics and spirits applications Elevate quality and prestige perceptions among high-end consumers Eliminate time and cost associated with secondary operations and assembly Luxury Packaging GravitechTM Density Modified Polymers Eliminate costs by increasing pigment density Enhance color performance without altering form and formulation Increase design capabilities by reducing weight and layer thickness Optimize Color Usage OnColorTM Super Concentrates Inhibit microbial growth on polymer surfaces Enhance value or products and devices Highly versatile concentrate with the ability to be incorporated into a wide variety of products Combat Bacteria Formation WithStandTM Antimicrobial Technology Durable, long-lasting products stand up to the most aggressive disinfectants Minimize environmental stress cracking and discoloration One of the broadest medically approved polymer and colorant portfolios Medical Device Housings Chemically Resistant Engineered Polymers Color & Design Services Greater control of color development and supply chain Work across entire design process from concept to commercialization Inspire creativity in the use of polymer materials, colors, and effects Innovative brand differentiation Faster development timelines Outdoor Applications Leading provider of high performance specialty materials for the recreational and sports & leisure industry Well positioned across all segments to address market needs Metal to Polymer Conversion Lightweighting Thermal Management Impact Performance ColorMatrix Fiber Colorant Solutions Proprietary advanced liquid color formulations and equipment enable greater efficiency and productivity Eliminates aqueous dyeing and its associated wastewater treatment Solid Color Concentrates Extrusion-spun fibers colored via solid masterbatch Fiber Colorants High flame retardancy to meet strict UL standards Greater processing and design flexibility Specialized additives provide long term color stability Diffusive lens materials improve light dispersion Smart Home Devices ResilienceTM Vinyl Solutions PolyOne investor presentation Forward Looking Statements USE OF �NON-GAAP�MEASURES Vision Safety First PolyOne�2017 Revenue | $3.2 billion Proof of Performance Sustainable Path to Double-Digit EPS Growth Investment in Commercial Resources driving growth The Evolving Customer Relationship Slide Number 11 New Resources Fueling the Future Aligning with trends for Growth Innovation 3 Horizons of Development Innovation Pipeline Innovation Spotlight: Composites Composites Refresher Strategic Investment History COMPOSITES in Transportation Invest-to-Grow M&A Strategy Invest-to-Grow M&A Playbook Invest-to-Grow Proof of performance Invest-to-Grow Driving the future Strong Pipeline�driven by fragmented Market Returning cash to shareholders�Over $1 Billion since 2011 ROIC drives shareholder return Why Invest In PolyOne?