https://www.avient.com/sites/default/files/2025-01/AVNT Dec 2022 Earnings Presentation Updated.pdf
Microsoft PowerPoint - AVNT Nov 2022 Earnings Presentation AVIENT CORPORATION I N V E S T O R P R E S E N T A T I O N (NYSE: AVNT) D E C E M B E R 2 0 2 2 AVIENT: WHO WE ARE 40 23 9 36 • U.S. and Canada • Latin America • Europe, Middle East & Africa • Asia 25,000+ CUSTOMERS Headquartered in Avon Lake, OH (Cleveland) 9,300+ employees 100+ manufacturing plants Key Financial Data $3.6 billion2022PF Sales $585 million2022PF EBITDA $2.952022PF EPS 100% ARE CUSTOMIZED SOLUTIONS TO UNIQUE SPECIFICATIONS of sales 2 Guidance as of November 2, 2022 Webcast WHO WE ARE – VISION, STRATEGY, CULTURE 3 Avient Corporation (NYSE: AVNT) provides specialized and sustainable material solutions that transform customer challenges into opportunities, bringing new products to life for a better world.
EBITDA Margins (1) • Focus on organic growth combined with transformative and bolt-on acquisitions • Divested commodity businesses tied to more cyclical end markets • Expanded presence in high growth areas of sustainable solutions, specialty healthcare applications, composites and more resilient end markets 5.4% 11.5% 16.1% 2006 2018 2022PF $142 $408 $585 2006 2018 2022PF 2006 figures exclude joint venture results 19 RETURNING CASH TO SHAREHOLDERS Growing Dividend 0.1 0.1 0.2 0.5 0.6 0.7 0.8 0.9 0.9 1.0 1.0 1.0 11 12 13 14 15 16 17 18 19 20 21 22 0.16 0.20 0.26 0.34 0.42 0.50 0.58 0.72 0.79 0.81 0.85 0.95 0.99 11 12 13 14 15 16 17 18 19 20 21 22 23 ~$1Bn REPURCHASED OVER LAST 11 YEARS ~$550MM PAID OVER LAST 11 YEARS Dividends Share Repurchases Cumulative Buybacks $B n $ p e r sh ar e $2.95 2022 PRO FORMA ADJUSTED EPS Earnings Growth Expanding Profitability $0.15 $1.09 $2.08 $2.67 $2.95 2009 2012 2015 2018 2022PF T H IR D Q UART ER 2022 RE S U LTS $110 $119 2021 2022 $0.61 $0.59 2021 2022 Q3 2022 PERFORMANCE (TOTAL COMPANY CONT.
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
Microsoft PowerPoint - AVNT Nov 2022 Earnings Presentation AVIENT CORPORATION I N V E S T O R P R E S E N T A T I O N (NYSE: AVNT) D E C E M B E R 2 0 2 2 AVIENT: WHO WE ARE 40 23 9 36 • U.S. and Canada • Latin America • Europe, Middle East & Africa • Asia 25,000+ CUSTOMERS Headquartered in Avon Lake, OH (Cleveland) 9,300+ employees 100+ manufacturing plants Key Financial Data 2022PF Sales $3.6 billion 2022PF EBITDA $585 million 2022PF EPS $2.95 100% ARE CUSTOMIZED SOLUTIONS TO UNIQUE SPECIFICATIONS of sales 2 Guidance as of November 2, 2022 Webcast WHO WE ARE – VISION, STRATEGY, CULTURE 3 Avient Corporation (NYSE: AVNT) provides specialized and sustainable material solutions that transform customer challenges into opportunities, bringing new products to life for a better world.
EBITDA Margins (1) • Focus on organic growth combined with transformative and bolt-on acquisitions • Divested commodity businesses tied to more cyclical end markets • Expanded presence in high growth areas of sustainable solutions, specialty healthcare applications, composites and more resilient end markets 5.4% 11.5% 16.1% 2006 2018 2022PF $142 $408 $585 2006 2018 2022PF 2006 figures exclude joint venture results 19 RETURNING CASH TO SHAREHOLDERS Growing Dividend 0.1 0.1 0.2 0.5 0.6 0.7 0.8 0.9 0.9 1.0 1.0 1.0 11 12 13 14 15 16 17 18 19 20 21 22 0.16 0.20 0.26 0.34 0.42 0.50 0.58 0.72 0.79 0.81 0.85 0.95 0.99 11 12 13 14 15 16 17 18 19 20 21 22 23 ~$1Bn REPURCHASED OVER LAST 11 YEARS ~$550MM PAID OVER LAST 11 YEARS Dividends Share Repurchases Cumulative Buybacks $B n $ p e r sh ar e $2.95 2022 PRO FORMA ADJUSTED EPS Earnings Growth Expanding Profitability $0.15 $1.09 $2.08 $2.67 $2.95 2009 2012 2015 2018 2022PF T H IR D Q UART ER 2022 RE S U LTS $110 $119 2021 2022 $0.61 $0.59 2021 2022 Q3 2022 PERFORMANCE (TOTAL COMPANY CONT.
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/resources/POL%2520IR%2520Presentation%2520Credit%2520Suisse%2520w%2520non%2520GAAP%25206%252025%25202014.pdf
PolyOne Corporation Page 4 PolyOne Commodity to Specialty Transformation • Volume driven, commodity producer • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures 2000-2005 2006 - 2009 2010 – 2014 2015 and beyond • Steve Newlin appointed, Chairman, President and CEO • New leadership team appointed • Implementation of four pillar strategy • Focus on value based selling, investment in commercial resources and innovation to drive transformation • 18 consecutive quarters of double- digit adjusted EPS growth • Shift to faster growing, high margin, less cyclical end markets • Key acquisitions propel current and future growth, as well as margin expansion • Established aggressive 2015 targets • Continue specialty transformation • Targeting $2.50 Adjusted EPS by 2015, nearly double 2013 EPS • Drive double digit operating income and adjusted EPS growth PolyOne Corporation Page 5 Building & Construction 13% Industrial 12% Transportation 18% Wire & Cable 9% Packaging 16% Consumer 10% HealthCare 11% Appliance 6% Electronics & Electrical 5% 2013 Revenues: $3.8 Billion End Markets 2013 Revenues: $3.8 Billion PolyOne At A Glance United States 67% Europe 14% Canada 7% Asia 6% Latin America 6% Specialty 54% PP&S 18% Distribution 28% $13 $31 $46 $46 $92 $96 $122 $195 $0 $50 $100 $150 $200 2006 2007 2008 2009 2010 2011 2012 2013 Specialty Operating Income PolyOne Corporation Page 6 Old PolyOne Transformation *Operating Income excludes corporate charges and special items 2% 34% 43% 62% 64% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2013 Q1 2014 2015 % o f O p e ra ti n g I n c o m e * JV's Performance Products & Solutions Distribution Specialty 65-75% Specialty OI $5M $46M $87M $195M $60M Target Mix Shift Highlights Specialty Transformation 2015 Target PolyOne Corporation Page 7 Confirmation of Our Strategy The World’s Premier Provider of Specialized Polymer Materials, Services and Solutions Specialization Globalization Operational Excellence Commercial Excellence PolyOne Corporation Page 8 -150.00% -50.00% 50.00% 150.00% 250.00% 350.00% 450.00% 550.00% POL S&P 500 Strategy and Execution Drive Results $0.12 $0.27 $0.21 $0.13 $0.68 $0.82 $1.00 $1.31 '06 '07 '08 '09 '10 '11 '12 '13 ‘06-‘13 EPS CAGR = 41% EPS Share Price vs.
S&P 500 All time high of $42.47 June 6th, 2014 PolyOne Corporation Page 9 2006 Q1 2014 2015 “Where we were” “Where we are” Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 13.8% 12 – 16% Global Specialty Engineered Materials 1.1% 11.6% 12 – 16% Designed Structures & Solutions -- 6.5% 8 – 10% Performance Products & Solutions 5.5% 7.7% 9 – 12% Distribution 2.6% 6.1% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 64% 65 – 75% 3) ROIC* 5.0% 9.4% 15% 4) Adjusted EPS Growth N/A 42% 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 PolyOne Corporation Page 10 Bridge to $2.50 Adjusted EPS by 2015 2015 EPS: $2.50 2013 EPS: $1.31 Continued Gross Margin Expansion Mergers & Acquisitions Spartech Accretion Incremental Share Buybacks Ongoing LSS Programs (50-100 bps/yr) Accelerated Innovation & Mix Improvement Several Levers to Drive Growth Mid Single Digit Revenue CAGR PolyOne Corporation Page 11 Innovation Drives Earnings Growth *Percentage of Specialty Platform revenue from products introduced in last five years $20 $53 2006 2013 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14.3% 30.7% 2006 2013 Specialty Platform Gross Margin % 19.5% 43.0% 2006 2013 Specialty Vitality Index Target ≥ 35% PolyOne Corporation Page 12 Healthcare Consumer Packaging and Additive Technology Transportation Unique and Innovative Solutions 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 PolyOne Corporation Page 13 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 14 60% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2014 Pension Funding** As of March 31, 2014 Debt Maturities & Pension Funding – 3/31/14 Net Debt / EBITDA* = 1.9x $48 $317 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Debt Maturities As of March 31, 2014 ($ millions) Coupon Rates: 7.500% 7.375% 5.250% ** includes US-qualified pension plans only *TTM 3/31/2014 PolyOne Corporation Page 15 Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return $0.16 $0.20 $0.24 $0.32 $0.10 $0.20 $0.30 $0.40 2011 2012 2013 2014 Annual Dividend Expanding our sales, marketing, and technical capabilities Targets that expand our: • Specialty offerings • End market presence • Geographic footprint • Operating Margin Synergy opportunities Adjacent material solutions Repurchased 1.4 million shares in Q1 2014 Repurchased 6.4 million shares since April 2013 13.6 million shares are available for repurchase under the current authorization Organic Growth Acquisitions Share Repurchases Dividends Investing in operational and LSS initiatives (including synergy capture) Manufacturing alignment PolyOne Corporation Page 16 Formula for Success Innovation Market Beating Performance Excellence in Execution PolyOne Corporation Page 17 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
https://www.avient.com/sites/default/files/2020-10/luxury-closures-gravi-tech-design-guide-2.0-application-specific.pdf
This will result in stronger parts due to the locked in FIGURE 43 - Non-Newtonian Fluid Flow Low Level of Orientation Frozen Layer Highly Oriented Laminates Gate Pressure Transducer A Pressure Transducer B Hydraulic x 10 Filling Hold Start of mold shrinkage Time Pack P re ss u re A B FIGURE 45 - Non-Newtonian fluid flow Relative Viscosity = Transfer Position * Fill Time Shear Rate = 1 Fill time FIGURE 46 - Pressure vs.
Beaumont, John P.
Beaumont, John P., R.
https://www.avient.com/sites/default/files/2021-01/case-study-one-pager-gravi-tech-luxury-closures-english-and-spanish_0.pdf
All Rights Reserved. https://www.polyone.com/products/engineered-polymer-formulations/eco-conscious-formulations/gravi-tech-density-modified PRODUCTOR LÍDER DE TAPONES PARA BEBIDAS ALCOHÓLICAS T A P O N E S D E L U J O • Se sustituye el metal al mismo tiempo que se ofrece aspecto y sensación metálicos • Personalización de densidad y color • Procesamiento sencillo • Cumplimiento con las normas de la FDA • El metal se sustituye con un compuesto plástico de densidad modificada para mantener una percepción de alta calidad • Se redujo al mínimo la aparición de desportilladuras por el desgaste cotidiano, que supera al metal porque permite hacer coincidir el interior de la tapa con los colores de revestimiento metalizado • Permitió al cliente introducir sus tapones de lujo en un nuevo segmento del mercado Formulación de densidad modificada Gravi- Tech™ REQUERIMIENTOS CLAVE ¿POR QUÉ AVIENT?
https://www.avient.com/sites/default/files/resources/HIGH_PERFORMANCE_CLEAR_THERMOPLASTICS_ELASTOMER.pdf
Stress versus strain of PVC, TPV and SBC compounds Stress versus Strain 0.00E+00 1.00E+06 2.00E+06 3.00E+06 4.00E+06 5.00E+06 6.00E+06 7.00E+06 8.00E+06 0 200 400 600 800 Strain, % S tr es s, P a low modulus high modulus Stress vs Strain 0 500 1000 1500 2000 0 500 1000 strain, % S tr es s, p si SBC 59A SBC-74A PVC 60A TPV 67A ANTEC 2003 / 3039 Table I Comparison of properties of silicone rubber and SBC compound Silicone Wacker 420/50S SBC compound Sp.
https://www.avient.com/sites/default/files/resources/US_Norwalk_ISO17025_2019Exp.pdf
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https://www.avient.com/sites/default/files/2024-03/AVNT February IR Presentation_w_Non-GAAP Recs_v2.pdf
Avient corporation first quarter 2023 results AVIENT CORPORATION I N V E S T O R P R E S E N T A T I O N (NYSE: AVNT) F E B R UA RY 2 0 2 4 DISCLAIMER Forward-Looking Statements Certain statements contained in or incorporated by reference into this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
Continue fostering our Great Place to Work® culture Strategic Objectives Long Term Growth Rates Growth Drivers $340 $455 $790 $1,135 2016 2018 2020 2023 $51 $84 $212 $645 2016 2018 2020 2023 $108 $113 $231 $230 2016 2018 2020 2023 $265 $358 $726 $725 2016 2018 2020 2023 8-12% 8-10% 8-10% 5% Sustainable Solutions Composites Healthcare Asia/Emerging Regions Profitable Growth Great Place to Work 5.4% 10.9% 16.0% 2006 2014 2023 EBITDA Margins $0.14 $1.93 $2.36 2006 2014 2023 Adjusted EPS TOP-TIER SUSTAINABILITY PERFORMANCE AND RECOGNITION Industry Sustainability Standards ESG Ratings Performance 1 2 4 87th 94th percentile 5 Avient CDP Score: A- FE BRUARY 14 , 2024 W E BCAS T P RE S E N TAT I O N DR.
PY (TOTAL COMPANY) $790 $719 2022 2023 $107 $114 2022 2023 Sales Adjusted EBITDA (in millions) $0.42 $0.52 2022 2023 Adjusted EPS (in millions) - 9% + 7% + 24% Sales Adjusted EBITDA Adjusted EPS 15 Q4 2023 SEGMENT PERFORMANCE 16 CAI $491 $459 Sales (in millions) $70 $84 EBITDA SEM $301 $260 Sales $55 $49 EBITDA - 7% - 14%+20% - 11% 2022 2023 (in millions) Q4 EBITDA BRIDGE (TOTAL COMPANY) 17 $ millions CAI: Price / Mix 11 Deflation 14 SEM: Price / Mix 4 Deflation 9 Net Price Benefit 38 Cost Reductions 13 Wage Inflation (8) Other (2) Q4 2023 $114 Adjusted EBITDA Q4 2022 $ 107 Demand (34) • Demand was down, but less than in previous quarters, due to slowing pace of destocking • Positive net price benefit: o CAI – Pricing flat with favorable mix from uptick in packaging and consumer end markets and raw material deflation o SEM - Pricing flat with favorable mix from Composites and raw material deflation • Cost reductions primarily driven by reduced administrative costs and cost synergies 2024 G U I DAN CE 2024 GUIDANCE Full Year 2024 Guidance Adjusted EBITDA $505 to $535 million Adjusted EPS $2.40 to $2.65 Interest Expense $105 to $110 million Adjusted Effective Tax Rate 23% to 25% Capital Expenditures ~$140 million 19 Q1 Adjusted EPS of $0.68 AP P E N DI X 21 Performance Additives 15% Pigments 13% TiO2 9% Dyestuffs 2% Polyethylene 10%Nylon 5% Polypropylene 4% Styrenic Block Copolymer 4% Other Raw Materials 38% ~40% hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials RAW MATERIAL BASKET SEGMENT DATA U.S. & Canada 41% EMEA 36% Asia 18% Latin America 5% 2023 SEGMENT, END MARKET AND GEOGRAPHY GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 19% Packaging 23%Industrial 16% Building and Construction 9% Telecommunications 4% Energy 5% Defense 7% END MARKET REVENUE $2,007M $358M $1,138M $224M Sales EBITDA Specialty Engineered Materials Color Additives and Inks $502M$3,143M (1) Transportation 10% Healthcare 7% 23 (1) Total company sales and adjusted EBITDA of $3,143M and $502M, respectively, include intercompany sales eliminations and corporate costs 2023 REVENUE | $2 .0 BILLION US & Canada 34% EMEA 37% Asia 21% Latin America 8% END MARKET REGION 24 Packaging 34% Consumer 21% Healthcare 8% Industrial 15% Transportation 9% Building & Construction 10% Telecommunications 1% Energy 2% COLOR, ADDITIVES & INKS 2023 REVENUE | $1 .1 BILLION US & Canada 52% EMEA 35% Asia 13% 25 Packaging 5% Consumer 16% Healthcare 6%Industrial 16% Transportation 12% Telecommunications 9% Energy 10% Defense 18% Building & Construction 8% END MARKET REGION SPECIALTY ENGINEERED MATERIALS Packaging 32% Consumer 26% Healthcare 9% Industrial 13% Building & Construction 6% Telecommunications 2% Energy 2% Defense 1% Asia (18% of sales) Transportation 9% 2023 AVIENT REGIONAL SALES Packaging 25% Consumer 13% Healthcare 5% Industrial 18% Building & Construction 9% Energy 5% Defense 8% EMEA (36% of sales)Transportation 13% Packaging 13% Consumer 22% Healthcare 10% Industrial 16% Building & Construction 12% Energy 6% Defense 8% US & Canada (41% of sales) Transportation 9% Packaging 59% Consumer 22% Healthcare 2% Industrial 8% Building & Construction 4% LATAM (5% of sales) Transportation 5% Telecommunications 4% Telecommunications 4% 26 BY END MARKET 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.
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Use of Non-GAAP Measures Page 3 -150.00% -50.00% 50.00% 150.00% 250.00% 350.00% PolyOne S&P 500 Strategy and Execution Drive Results Page 4 All time closing high of $29.48 August 1, 2013 • 15 consecutive quarters of double digit EPS growth • 42% CAGR adjusted EPS expansion 2006-2012 • YTD stock price has increased 42% versus 20% growth in the S&P • 275% increase in market cap: $0.7b $2.6b since 2006 The World’s Premier Provider of Specialized Polymer Materials, Services & Solutions Four Pillar Strategy Page 5 PP&S 15% Specialty 60% Distribution 25% 0.12 0.27 0.21 0.13 0.68 0.82 1.00 2.50 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 $2.50 2006 2007 2008 2009 2010* 2011* 2012* 2015 Target Ad ju st ed E ar ni ng s P er S ha re Appliance 6% Building & Construction 13% Wire & Cable 9% Electrical & Electronics 4% Consumer 9% Packaging 18% Industrial 10% Misc. 5% HealthCare 9% Transportation 16% Textiles 1% United States 70% Europe 14% Canada 8% Asia 5% Latin America 3% 2012 Revenues: $4.0 Billion* End Markets* 2012 Revenues: $4.0 Billion* EPS Page 6 * Pro Forma includes FY2012 results for Spartech (11/03/12 YE) and Glasforms & excludes discontinued operations PolyOne At A Glance * Restated to exclude discontinued operations Old PolyOne Transformation *Operating Income excludes corporate charges and special items **Pro Forma results include Spartech and Glasforms acquisitions, Specialty Coatings reclass and excludes discontinued operations 2% 34% 43% 45% 60% 65- 75% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2012 2012 PF** 2015 % o f O pe ra tin g In co m e* JV's PP&S Distribution Specialty Specialty OI $5M $46M $87M $114M $150M Target Mix Shift Highlights Specialty Transformation 2015 Target Page 7 2006 H1 2013 2015 Where we were Where we are Organic Consolidated Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 12.7% 12.6% 12 – 16% Global Specialty Engineered Materials 1.1% 10.9% 9.2% 12 – 16% Designed Structures & Solutions — — 4.4% 8 – 10% Performance Products & Solutions 5.4% 8.1% 8.2% 9 – 12% Distribution 2.6% 6.1% 6.1% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 62% 65 – 75% 3) ROIC* (after-tax) 5.0% 9.4% 15% 4) Adjusted EPS Growth N/A 26% Double Digit Expansion Proof of Performance & 2015 Goals *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period Page 8 *Percentage of Specialty Platform revenue from products introduced in last five years 19.5% 46.5% 2006 Q2 2013 $20.3 $44.7 2006 TTM Q2'13 14.3% 31.1% 2006 Q2 2013 Research & Development Spending Specialty Platform Vitality Index Progression* Innovation Drives Earnings Growth ($ millions) Specialty Platform Gross Margin % Page 9 We are Experts in Polymer Science and Formulation Polymer Science Formulation Chemistry Processing Inputs Base Resins Additives Modifiers Colorants Specialized Polymer Materials, Services, and Solutions Expertise Satisfied Consumers PolyOne Customer Innovative Products & Services Marketplace Demands Performance Requirements Value Drivers Page 10 Positioned for Strong Growth 2015 Target Rev: $5B Adj.
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Use of Non-GAAP Measures Page 3 -150.00% -50.00% 50.00% 150.00% 250.00% 350.00% PolyOne S&P 500 Page 4 All time high of $32.32 October 21st, 2013 • 16 consecutive quarters of double digit EPS growth • 42% CAGR adjusted EPS expansion 2006-2012 • YTD stock price has increased 56% versus 22% growth in the S&P • Six fold increase in market cap: $0.5b $3.0b Strategy and Execution Drive Results PP&S 15% Specialty 60% Distribution 25% 0.12 0.27 0.21 0.13 0.68 0.82 1.00 2.50 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 $2.50 2006 2007 2008 2009 2010* 2011* 2012* 2015 Target Ad ju st ed E ar ni ng s P er S ha re Appliance 6% Building & Construction 13% Wire & Cable 9% Electrical & Electronics 4% Consumer 9% Packaging 18% Industrial 10% Misc. 5% HealthCare 9% Transportation 16% Textiles 1% United States 70% Europe 14% Canada 8% Asia 5% Latin America 3% 2012 Revenues: $4.0 Billion* End Markets* 2012 Revenues: $4.0 Billion* EPS Page 5 * Pro Forma includes FY2012 results for Spartech (11/03/12 YE) and Glasforms & excludes discontinued operations PolyOne At A Glance * Restated to exclude discontinued operations Old PolyOne Transformation *Operating Income excludes corporate charges and special items 2% 34% 43% 63% 65- 75% 0% 20% 40% 60% 80% 100% 2005 2008 2010 YTD 2013 2015 % o f O pe ra tin g In co m e* JV's PP&S Distribution Specialty Specialty OI $5M $46M $87M $153M Target Mix Shift Highlights Specialty Transformation 2015 Target Page 6 2006 YTD 2013 2015 Where we were Where we are Organic Consolidated Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 12.8% 12.8% 12 – 16% Global Specialty Engineered Materials 1.1% 10.8% 8.9% 12 – 16% Designed Structures & Solutions — — 5.0% 8 – 10% Performance Products & Solutions 5.5% 8.0% 8.2% 9 – 12% Distribution 2.6% 6.1% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 63% 65 – 75% 3) ROIC* (after-tax) 5.0% 9.4% 15% 4) Adjusted EPS Growth N/A 28% Double Digit Expansion Proof of Performance & 2015 Goals *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period Page 7 *Percentage of Specialty Platform revenue from products introduced in last five years 19.5% 44.0% 2006 Q3 2013 $20.3 $46.6 2006 TTM Q3'13 14.3% 31.0% 2006 Q3 2013 Research & Development Spending Specialty Platform Vitality Index Progression* Innovation Drives Earnings Growth ($ millions) Specialty Platform Gross Margin % Page 8 We are Experts in Polymer Science and Formulation Polymer Science Formulation Chemistry Processing Inputs Base Resins Additives Modifiers Colorants Specialized Polymer Materials, Services, and Solutions Expertise Satisfied Consumers PolyOne Customer Innovative Products & Services Marketplace Demands Performance Requirements Value Drivers Page 9 Positioned for Strong Growth 2015 Target Rev: $5B Adj.