https://www.avient.com/sites/default/files/resources/POL%2520Sidoti%2520IR%2520Presentation%2520w%2520Non%2520GAAP%25203%252018%25202014.pdf
Use of Non-GAAP Measures Page 3 PolyOne Commodity to Specialty Transformation Page 4 • Continue specialty transformation • Targeting $2.50 Adjusted EPS by 2015, nearly double 2013 EPS • Drive double digit operating income and adjusted EPS growth • 17 consecutive quarters of double- digit adjusted EPS growth • Shift to faster growing, high margin, less cyclical end markets • Key acquisitions propel current and future growth, as well as margin expansion • Established aggressive 2015 targets • Steve Newlin Appointed, Chairman, President and CEO • New leadership team appointed • Implementation of four pillar strategy • Focus on value based selling, investment in commercial resources and innovation to drive transformation • Volume driven, commodity producer • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures 2000-2005 2006 - 2009 2010 – 2013 2014 and beyond -150.00% -50.00% 50.00% 150.00% 250.00% 350.00% PolyOne S&P 500 Russell 2000 Dow Jones Chemical All time high of $38.38 March 7th, 2014 • 17 consecutive quarters of double digit EPS growth • 49% CAGR adjusted EPS expansion 2006-2013 • 2013 stock price increased 73% versus 30% growth in the S&P • More than seven fold increase in market cap: $0.5b $3.6b Strategy and Execution Drive Results Page 5 Appliance 4% Building & Construction 13% Wire & Cable 9% Electrical & Electronics 5% Consumer 10%Packaging 16% Industrial 12% HealthCare 11% Transportation 18% Misc. 2% United States 66% Europe 14% Canada 7% Asia 6% Latin America 7% PP&S 20% Specialty 53% Distribution 27% 0.12 0.27 0.21 0.13 0.68 0.82 1.00 1.31 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 2013 2015 Target Ad ju st ed E ar ni ng s P er S ha re 2013 Revenues: $3.8 Billion End Markets 2013 Revenues: $3.8 Billion EPS Page 6 PolyOne At A Glance Old PolyOne Transformation *Operating Income excludes corporate charges and special items 2% 34% 43% 62% 65- 75% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2013 2015 % o f O pe ra tin g In co m e* JV's Performance Products & Solutions Distribution Specialty Specialty OI $5M $46M $87M $195M Target Mix Shift Highlights Specialty Transformation 2015 Target Page 7 2006 2013 2015 “Where we were” “Where we are” Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 12.2% 12 – 16% Global Specialty Engineered Materials 1.1% 9.3% 12 – 16% Designed Structures & Solutions -- 5.6% 8 – 10% Performance Products & Solutions 5.4% 7.2% 9 – 12% Distribution 2.6% 5.9% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 62% 65 – 75% 3) ROIC* (after-tax) 5.0% 9.1% 15% 4) Adjusted EPS Growth N/A 31% 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 Bridge To $2.50 Adjusted EPS By 2015 2015 EPS: $2.50 2013 EPS: $1.31 Mid single digit revenue CAGR Page 9 Mergers & Acquisitions Spartech accretion Incremental share buybacks Ongoing LSS Programs (50-100 bps/yr) Accelerated Innovation & Mix Improvement Innovation Drives Earnings Growth $20.3 $52.3 2006 2013 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* *Percentage of Specialty Platform revenue from products introduced in last five years Page 10 14.3% 30.7% 2006 2013 Specialty Platform Gross Margin % 19.5% 43.0% 2006 2013 Healthcare Consumer Packaging and Additive Technology Transportation Page 11 Unique and Innovative Solutions that Help Customers Win https://www.dropbox.com/sh/dwe4t8aacvhb8ui/uD3p_bdglP/Presentation revise pics/GLS Beverage can closure XO 2.jpg https://www.dropbox.com/sh/dwe4t8aacvhb8ui/-YgkycKypw/Anti-Counterfeiting release & images/GN1979.JPG Net Debt / EBITDA* = 1.8x $48 $317 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Significant Debt Maturities As of December 31, 2013 ($ millions) Page 12 Coupon Rates: 7.500% 7.375% 5.250% Debt Maturities & Pension Funding – 12/31/13 *TTM 12/31/2013 ** includes US-qualified plans only 60% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2013 Pension Funding** As of December 31, 2013 Free Cash Flow and Strong Balance Sheet Fund Investment •Targets that expand our: • Specialty offerings •End market presence •Geographic footprint •Operating Margin • Synergy opportunities •Adjacent material solutions •Expanding our sales, marketing, and technical capabilities • Investing in operational and LSS initiatives (including synergy capture) •Manufacturing alignment Organic Growth Share Repurchases Dividends Acquisitions Page 13 $0.16 $0.20 $0.24 $0.32 $0.00 $0.10 $0.20 $0.30 $0.40 2011 2012 2013 2014 Annual Dividend • Repurchased ~5 million shares in 2013 • 15 million shares are available for repurchase under the current authorization The New PolyOne: A Specialty Growth Company 2015 Target: $2.50 Adjusted EPS Why Invest In PolyOne?
Reconciliation to Condensed Consolidated Balance Sheets 2013 Short-term debt and current portion of long-term debt $ 12.7 Long-term debt 976.2 Less cash and cash equivalents (365.2) Net debt $ 623.7 Adjusted EBITDA 2013 Income before income taxes $ 151.0 Interest expense, net 63.5 Depreciation and amortization 108.8 Special items in EBITDA 31.7 Adjusted EBITDA $ 355.0 2 Platform sales and operating income (OI) 2006Y* 2013Y Global Specialty Engineered Materials sales $ 345.3 $ 615.5 Global Color, Additives and Inks sales 531.8 852.3 Designed Structures and Solutions sales - 597.4 Specialty Platform sales 877.1 2,065.2 Performance Products and Solutions sales 1,166.2 773.2 PolyOne Distribution sales 732.8 1,075.2 Corporate and eliminations (153.7) (142.4) Total sales $ 2,622.4 $ 3,771.2 Global Specialty Engineered Materials OI $ 3.9 $ 57.2 Global Color, Additives and Inks OI 8.9 104.0 Designed Structures & Solutions OI - 33.4 Specialty Platform OI 12.8 194.6 Performance Products and Solutions OI 64.2 56.0 PolyOne Distribution OI 19.2 63.3 Sunbelt Joint Venture OI 102.9 - Corporate and eliminations (4.6) (52.4) Special items in OI 39.1 (30.0) Operating income GAAP 233.6 231.5 Sunbelt equity income (107.0) - Special items in OI (39.1) 30.0 Adjusted operating income $ 87.5 $ 261.5 Global Specialty Engineered Materials - OI % of sales 1.1% 9.3% Global Color, Additives and Inks - OI % of sales 1.7% 12.2% Designed Structures & Solutions - OI % of sales - 5.6% Specialty platform OI - % of sales 1.5% 9.4% PP&S operating OI - % of sales 5.5% 7.2% Distribution OI - % of sales 2.6% 5.9% PolyOne OI adjusted - % of sales 3.3% 6.9% * Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
https://www.avient.com/sites/default/files/2022-11/AVNT Q3 2022 Earnings Presentation - Website Final.pdf
Purchase price multiple rapidly declining on strength of business and synergy capture 7 $133 $201 2019PF 2022E 7 Clariant Color EBITDA Growth Purchase Price Multiple 10.8x 7.0x 6.4x 2019PF 2021 2022E w/ Full Synergies (1) (1) 11.9% 16.3% 2019PF 2022E EBITDA Margins (1) CLARIANT COLOR: TRANSFORMATIONAL ACQUISITION ($ in millions) (1) Financial information is pro forma to include a full year of Clariant Color business SUNBELT PVC Resins DSS 20 Acquisitions $4.8B Investment $2.7B of Annual Revenue 5 Divestments $2.3B Proceeds TPE PP&S HISTORIC SPECIALIZATION THROUGH M&A 8 Distribution DSM Protective Materials BOLT-ON ACQUISITION HISTORY 9 Commercial Resources Operating Income ($ in millions) Operating Margins 259 363 At Acquisition 2022E $40 $139 At Acquisition 2022E 9% 22% At Acquisition 2022E Established Acquisitions (> 7 years) + 40% + 248% + 1300 bps I N V E S T T O G R O W SPECIALTY TRANSFORMATION T O D A Y 7% 46% 67% 86% 100% 0% 20% 40% 60% 80% 100% 2005 2010 2019 2021 2022 PF % o f A d ju st ed E B IT D A • Commodity JVs • Distribution • Performance Products & Solutions • Specialty Businesses (1) Adjusted EBITDA is EBITDA excluding corporate costs and special items (2) Pro forma for the acquisition of Dyneema® and divestiture of Distribution (1 ) (2) 10 Healthcare 4% Packaging 8% Consumer 10% Building & Construction 43% Industrial 15% Transportation 14% Energy 4% Telecom. 2% 2006 2022 Pro Forma Healthcare 8% Packaging 23% Consumer 21% Building & Construction 10% Industrial 15% Transportation 9% Energy 4% Telecom. 4% Defense 6% END MARKET FOCUS ON LESS CYCLICAL INDUSTRIES 11 14.8% 17.6% 21.0% 2018 2020 2022 PF 1.8% 2006 15.3% 16.2% 17.0% 2018PF 2020PF 2022E CAI 2.7% 2006 SEM SPECIALTY EBITDA MARGIN EXPANSION 12 • Portfolio transformation accelerates growth in less cyclical, higher margin end markets • Investments in our composites platform continue to drive margin expansion (1) (1) (1) 2018 and 2020 financial information is pro forma to include a full year of Clariant Color acquisition PORTFOLIO EVOLUTION OVER THE YEARS 13 Adj.
Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net (loss) income from continuing operations attributable to Avient shareholders $ (27.4) $ (0.30) $ 33.7 $ 0.37 Special items, after tax (Attachment 3) 68.3 0.75 11.7 0.13 Amortization expense, after-tax 13.4 0.14 $ 11.0 $ 0.11 Adjusted net income / EPS $ 54.3 $ 0.59 $ 56.4 $ 0.61 2009* 2012* 2015 2018 Net income from continuing operations attributable to Avient common shareholders $ 106.7 $ 53.3 $ 144.6 $ 161.1 Joint venture equity earnings, after tax (19.0) — — — Special items, before tax (48.7) 55.1 87.6 59.5 Special items, tax adjustments (27.2) (18.9) (58.7) (25.3) Amortization expense, after tax 1.8 8.3 10.4 19.5 Adjusted net income from continuing operations attributable to Avient common shareholders $ 13.6 $ 97.8 $ 183.9 $ 214.8 Diluted shares 93.4 89.8 88.7 80.4 Adjusted EPS attributable to Avient common shareholders $ 0.15 $ 1.09 $ 2.08 $ 2.67 * Historical results have been updated to reflect subsequent changes to accounting principle and discontinued operations, excluding any changes as a result of discontinued operations from the sale of the Designed Structures and Solutions segment (DSS) and the Performance Products and Solutions segment (PP&S). 1 Year Ended December 31, Reconciliation to EBITDA and Adjusted EBITDA: 2006 2018 Sales $ 2,622.4 $ 3,533.4 Net income from continuing operations – GAAP $ 133.5 $ 160.8 Income tax expense 29.7 36.4 Interest expense 63.1 62.8 Depreciation and amortization 57.1 91.5 EBITDA $ 283.4 $ 351.5 Special items, before tax (34.0) 59.5 Depreciation and amortization included in special items — (3.0) JV - equity income (107.0) — Adjusted EBITDA $ 142.4 $ 408.0 EBITDA as a % of sales 5.4 % 11.5 % Reconciliation of Color, Additives and Inks EBITDA Q3 2022 Q3 2021 Operating Income 68.6 66.8 Depreciation and amortization 24.2 26.6 EBITDA 92.8 $ 93.4 Reconciliation of Specialty Engineered Materials EBITDA Q3 2022 Q3 2021 SEM(1) Pro forma APM(1) Pro forma SEM SEM Pro forma APM Pro forma SEM Operating Income 31.4 6.3 37.7 30.0 13.9 43.9 Depreciation and amortization 12.9 10.9 23.8 7.9 18.4 26.3 EBITDA $ 44.3 $ 17.2 $ 61.5 $ 37.9 $ 32.3 $ 70.2 Reconciliation of Specialty Engineered Pro Forma Sales Q3 2022 Q3 2021 Sales 258.2 231.7 Pro forma APM(1) 60.7 94.1 Pro forma sales $ 318.9 $ 325.8 Reconciliation of Avient Pro Forma Sales Q3 2022 Q3 2021 Sales 823.3 818.0 Pro forma APM(1) 60.7 94.1 Pro forma sales $ 884.0 $ 912.1 (1) - Q3 2022 SEM results reflect one month of APM’s results while owned by Avient, as the acquisition closed on September 1, 2022.
https://www.avient.com/resources/safety-data-sheets?page=6246
X HC TR34106-01A-7 850 Natural- 30 Nom
PP FR 8-6 LMS-1000
https://www.avient.com/resources/safety-data-sheets?page=6245
X HC TR34106-01A-2 PC Natural- 30 Nom
PP FR 8-6 LMS-1000
https://www.avient.com/resources/safety-data-sheets?page=87
129-BU-30 PVC BLAU ZYLINDER
PP FR 8-6 LMS-1000
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PF-1000 BLACK 30
PP FR 8-6 LMS-1000
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97-BU-30 BLUE SPVC CONCENTRATE
PP FR 8-6 LMS-1000
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T417.1 NP-30 CONC.
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https://www.avient.com/resources/safety-data-sheets?page=5180
GB 1200 30 HS BLACK 18
PP FR 8-6 LMS-1000
https://www.avient.com/resources/safety-data-sheets?page=3337
16807-03 EXPLA570E BROWN (2108-30)
PP FR 8-6 LMS-1000