https://www.avient.com/investor-center/news/avient-provides-third-quarter-2020-performance-update
Projected free cash flow of $80 million in third quarter; $240 million for full year 2020
$80 million
https://www.avient.com/sites/default/files/2021-01/amendment-to-articles-commercial-registration-avient-corporation.pdf
DATE 04/23/2020 DOCUMENT ID 202011402526 NAME RESERVATION (NRO) DESCRIPTION FILING 39.00 EXPED 100.00 CERT 0.00 COPY 0.00 Receipt Effective Date: 04/23/2020 DOC ID ----> 202018203934 180 East Broad Street, 16th Floor Columbus, OH 43215 (877) 767-6446 | (614) 466-2655 info@OhioSecretaryofState.gov www.OhioSecretaryofState.gov June 22, 2020 CT Corporation System Attn: Ken Brown 4400 Easton Common Way, Suite 125 Columbus, OH 43219 Re: Preclearance of Certificate of Amendment Dear: Mr.
https://www.avient.com/sites/default/files/2023-03/Cesa Nox A4R Product Bulletin_0.pdf
During processing, polymers often degrade due to oxygen and heat exposure which causes such things as discoloration, gels, and black spots.
It is a specialized antioxidant additive that stabilizes polyolefins during processing—preventing the typical defects like discoloration, gels, and black spots—during initial, and future conversion steps and recycling loops.
Sustainability Spotlight Recycle Solutions KEY CHARACTERISTICS • Designed for polyolefin recycling and to enhance circularity • Protects polyolefins against degradation caused by oxygen and heat during processing • Provides improved stability against oxygen degradation and discoloration • Stabilizes the polymer to reduce creation of new gels and black spots • Excellent performance at low dosage levels MARKETS & APPLICATIONS • Recycled polyolefins • Packaging, consumer & others • High-value polyolefin applications with recycled material content • Virgin polymers which will be recycled after the use phase Copyright © 2022, Avient Corporation.
https://www.avient.com/sites/default/files/2023-02/Gravi-Tech BIO Bio-Based Formulations Product Bulletin.pdf
KEY CHARACTERISTICS • Customized density offering a wide range of specific gravities (1.5–11 gm/cm3) • Formulated with partially bio-based resin from renewable plant sources • Broad modulus range, from very flexible to very rigid grades • Corrosion resistance that withstands oxidization for long-term use and benefit • Chemical resistance that can be adapted depending on base resin as required • Provides visual surface effects, aesthetics and cool touch • Design flexibility and processing ease • Food contact compliance available MARKETS AND APPLICATIONS Applications in packaging and consumer goods in which a more sustainable solution is preferred: • Cosmetic caps and closures • Perfume caps • Spirit bottle caps • Luxury boxes • Handles and knobs SUSTAINABILITY BENEFITS • Formulated with partially bio-based resin from renewable plant sources • Reduces waste and supports the circular economy • Reduces carbon footprint compared to fossil feedstock alternatives • Simplifies manufacturing and lowers cost versus metal PRODUCT BULLETIN CHARACTERISTICS UNITS Gravi-Tech BIO GT5200-5077 FD Natural Gravi-Tech BIO RS5200-5001 RS FD Natural Gravi-Tech BIO RS5200-5001 RS FD Natural X1 Gravi-Tech BIO GT5200-5003 FD Black Gravi-Tech BIO GT5200-5004 FD Black Gravi-Tech BIO GT5200-5002 FD Black Base Resin Bio-based PP Bio-based PP Bio-based PP Bio-based PP Bio-based PP Bio-based PP Recycled Content/Filler g/cm Mineral Mineral Mineral Metallic Metallic Metallic Density (ISO 1183) g/ccm 1.90 2.0 2.0 2.0 2.5 3.0 AVAILABLE GRADES Copyright © 2023, Avient Corporation.
https://www.avient.com/sites/default/files/resources/PolyOne%25202017%2520Annual%2520Report.pdf
Six Sigma Master Black Belt, General Electric Company Plastics Business from March 2001 to December 2002.
At the Company's discretion, interest is based upon (i) a margin rate of 200 basis points plus the 1-, 2-, 3-, or 6-month LIBOR or (ii) a margin rate of 100 basis points plus a Prime Rate, subject to a floor of 175 basis points.
At the Company's discretion, interest is based upon (i) a margin rate of 200 basis points plus the 1-, 2-, 3-, or 6-month LIBOR or (ii) a margin rate of 100 basis points plus a Prime Rate, subject to a floor of 175 basis points.
https://www.avient.com/industries/consumer/consumer-discretionary/outdoor-recreation/exercise-fitness
Versaflex™ CE 3320-80 custom solution to enhance stain resistance and tensile strength
Aerospace & Rail Walls, Liners & Flooring
Under Hood Components
https://www.avient.com/industries/packaging/beverage-packaging/beverage-packaging-dairy
Versaflex™ CE 3320-80 custom solution to enhance stain resistance and tensile strength
Aerospace & Rail Walls, Liners & Flooring
Under Hood Components
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Gabelli%2520%2526%2520Co%2520Specialty%2520Chemicals%2520Conference.pdf
Use of Non-GAAP Measures 4POLYONE CORPORATION FORMULATION EXPERTISE SERVICE INNOVATION Expertise in Polymer Materials, Services and Solutions OEMs Brand Owners Processers Assemblers IQ Design Labs InVisiOSM Color Services LSS Customer First Specialty products & services driving customer value What We Do 5POLYONE CORPORATION PolyOne At a Glance 2017 Revenue – $3.2 billion Performance Products & Solutions 21% PolyOne Distribution 34% Specialty Engineered Materials 19% Color Additives & Inks 26% United States 59% Europe 14% Latin America 9% Canada 8% Asia 10% $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.06 $2.21 2009 2010 2011 2012 2013 2014 2015 2016* 2017 Transportation 18% Consumer 12% Healthcare 11% Packaging 11% Industrial 16% Building & Construction 12% Wire & Cable 9% Electrical & Electronics 6% Appliance 5% *Recast for DSS in discontinued operations 6POLYONE CORPORATION 2% 43% 76% 0% 20% 40% 60% 80% 100% 2005 2010 2017 % o f O pe ra tin g In co m e* *Operating Income excludes corporate charges and special items Specialty OI $5M $87M $280M JV’s Performance Products & Solutions Specialty MixDistribution Mix Shift Highlights Specialty Transformation Distribution and Contract Manufacturing Businesses 7POLYONE CORPORATION Consistently Deliver Double Digit Annual EPS Growth *ROIC is defined as TTM adjusted OI after tax divided by the sum of average debt and equity less cash over a 5 quarter period Proof of Performance 2020 Platinum Vision 20%+ 20%+ 12 - 14% 6.5 – 7.5% 15% 2006 2017 2020 “Where we were” “Where we are” Platinum Vision ROIC* 5.0% 14.0% Operating Income % of Sales Color, Additives & Inks 1.7% 15.5% Specialty Engineered Materials 1.1% 12.5% Performance Products & Solutions 5.5% 10.7% Distribution 2.6% 6.3% 8POLYONE CORPORATION $50 $116 $0 $40 $80 $120 $160 $200 2012 2014 2016 2018 10.8% 11.3% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 2012 2014 2016 2017 2020 Platinum Vision *ROIC is defined as TTM adjusted OI after tax divided by the sum of average debt and equity less cash over a 5 quarter period Free Cash Flow and Improving Returns Free Cash Flow (in millions) ROIC* $200 - $220 14.0% $143 12.9% 15.0% 9POLYONE CORPORATION $767M Returning Cash to Shareholders $0 $150 $300 $450 $600 $750 2011 2012 2013 2014 2015 2016 2017 Since 2011, we have returned over $950 million to shareholders $767M Cumulative Share Repurchases (in millions) $0.16 $0.20 $0.24 $0.32 $0.40 $0.48 $0.58 $0.70 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 3-Year Dividend Plan Increasing Annual Dividend 10POLYONE CORPORATION Expanding our sales, marketing, and technical capabilities Investing in operational and LSS initiatives ~60 - 70% of capital expenditures fund growth initiatives Organic Growth Acquisitions Share Repurchases Dividends Targets that expand our: • Specialty offerings • End market presence • Geographic breadth Growth synergies Adjacent material solutions Repurchased 2.0 million shares in 2017 Repurchased 20.8 million shares since early 2013 6.5 million shares are available for repurchase under the current authorization Increased annual dividend by 30% to $0.70 per share, representing the eighth consecutive year of dividend growth Expect to increase annual dividend 60% or more cumulatively over next three years Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return 11POLYONE CORPORATION *Specialty Platform revenue from products introduced in last five years Vitality Index Progression* 12% 38% 2006 2017 Target ≥ 35% Innovation Drives Earnings Growth $20 $52 2006 2017 Research & Development Spend ($ millions) Total Specialty Addressable Market of over $2.6 Billion (10 Projects) (10 Projects) ($500 million) (19 Projects) ($1.4 billion) Innovation Pipeline Potential Frame Opportunity Prototype Scale-up and Test Market Commercial Launch $500 Million $1.4 Billion $700 Million Phase 5Phase 4Phase 3Phase 2Phase 1 Build Business Case 12POLYONE CORPORATION 2017 2021 Key Innovation Growth Platforms Composites Barrier Additive Technology Fiber Colorants Flame Retardant Polymers Increasing regulatory drive for halogen replacements $400m addressable market Drive to prevent oxygen, light and UV rays from affecting contents in PET packaging, extending shelf life $200m addressable market 60% of world fiber consumption is synthetic, need to simplify manufacturing and eliminate waste $300m addressable market Polymer formulation and process engineering create a pipeline for next generation materials Drive to replace aluminum and steel with plastics without compromising on strength Total Sales ($millions) 2017 2021 2017 2021 2017 2021 13POLYONE CORPORATION Providing LSS services to small/medium sized customers – have trained over 30 customers in LSS methodology Providing Industrial design and color services to small/medium sized customers On time delivery above 95% Strengthening Relationships: Customer First Through World-Class Service 14POLYONE CORPORATION Addressable market exceeds $40 billion Strong performance demonstrates that our strategy and execution are working Megatrends and emerging opportunities align with strengths Innovation and services provide differentiation, incremental pricing power and competitive advantage Strategic reinvestment for growth while returning cash to shareholders Strong and proven management team driving growth and performance Why Invest In PolyOne?
The New PolyOne: A Specialty Growth Company Segment Highlights 16POLYONE CORPORATION 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 14.7% 16.7% 16.0% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2020 2017 Revenue: $0.9 Billion Key End Markets (% of revenue) United States 46% Europe 31% Asia 15% Latin America 4% South America 2% Canada 2% Platinum Vision Packaging (27%) Industrial (14%) Wire & Cable (10%) Textiles (12%) Transportation (8%) 15.5% Operating Income % of Sales Color, Additives & Inks At a Glance 17POLYONE CORPORATION 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 12.1% 14.7% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2020 Platinum Vision United States 48% Europe 28% Asia 22% Canada 2% Consumer (20%) Transportation (19%) Electrical & Electronics (15%) Wire & Cable (13%) Healthcare (11%) 12.5% 20%+ Key End Markets (% of revenue) 2017 Revenue: $0.6 Billion Operating Income % of Sales 14.3% Specialty Engineered Materials At a Glance 18POLYONE CORPORATION 5.5% 6.9% 3.8% 3.6% 5.5% 4.3% 6.3% 7.2% 7.7% 8.3% 12-14% 10.7% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2020 11.1% United States 77% Canada 16% Latin America 5% Asia 2% Platinum Vision Building & Construction (30%) Transportation (16%) Wire & Cable (15%) Industrial (18%) Key End Markets (% of revenue) 2017 Revenue: $0.7 Billion Operating Income % of Sales Performance Products & Solutions At a Glance 19POLYONE CORPORATION Transportation 23% Healthcare 22% Industrial 18% Consumer 15% Appliance 7% E & E 6% B & C 4% Packaging 3% W & C 2% 4% 38% 2006 2017 ROIC* 2.6% 3.0% 3.5% 4.6% 5.6% 6.4% 5.9% 6.1% 6.6% 6.5 - 7.5%6.3% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2020 *After-Tax ROIC 6.4% 2017 Revenue: $1.2 Billion Key Suppliers Operating Income % of Sales 4.0% Platinum Vision Distribution At a Glance http://www.polyone.com/Pages/VariationRoot.aspx http://www.polyone.com/Pages/VariationRoot.aspx Target End Markets & Application Examples 21POLYONE CORPORATION 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 22POLYONE CORPORATION 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 23POLYONE CORPORATION Target End Markets… Consumer Thermally Conductive Components Polymer Colorants Elastomeric Grips and Handles Structural Composite Components 24POLYONE CORPORATION 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 25POLYONE CORPORATION 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 26POLYONE CORPORATION Optimize Color Usage OnColorTM Super Concentrates Eliminate costs by increasing pigment density Enhance color performance without altering form and formulation Increasing design capabilities by reducing weight and layer thickness 27POLYONE CORPORATION Combat Bacteria Formation WithStandTM Antimicrobial Technology 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 28POLYONE CORPORATION Medical Device Housings Chemically Resistant Engineered Polymers 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 29POLYONE CORPORATION 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 30POLYONE CORPORATION 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 31POLYONE CORPORATION 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 32POLYONE CORPORATION Smart Home Devices ResilienceTM Vinyl Solutions 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 1 Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to PolyOne common shareholders, adjusted earnings per share (EPS) attributable to PolyOne common shareholders and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to assess performance and allocate resources because senior management believes that these measures are useful in understanding current profitability levels and that current levels may serve as a base for future performance.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Goldman%2520Sachs%2520Conference%2520w%2520nonGAAP.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 • 20 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 • Goal of $2.50 adjusted EPS by 2015, three times the EPS generated in 2011 of $0.82 • 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 *Operating Income excludes corporate charges and special items 2% 34% 43% 62% 65% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2013 2014 YTD 2015 % o f O pe ra tin g In co m e* JV's Performance Products & Solutions Distribution Specialty 65-75% Specialty OI $5M $46M $87M $195M $191M Target Mix Shift Highlights Specialty Transformation 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 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 -150% -50% 50% 150% 250% 350% 450% 550% POL S&P 500 All time high of $43.34 July 1st, 2014 PolyOne Corporation Page 9 2006 2014 YTD 2015 “Where we were” “Where we are” Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 14.9% 12 – 16% Global Specialty Engineered Materials 1.1% 12.1% 12 – 16% Designed Structures & Solutions -- 7.6% 8 – 10% Performance Products & Solutions 5.5% 8.1% 9 – 12% Distribution 2.6% 6.2% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 65% 65 – 75% 3) ROIC* 5.0% 10.6% 15% 4) Adjusted EPS Growth N/A 37% 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 32% Adjusted EPS CAGR from 2011 2015 EPS: $2.50 2011 EPS: $0.82 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 Growth 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% 31% 2006 2013 Specialty Platform Gross Margin % 20% 43% 2006 2013 Specialty Vitality Index Target ≥ 35% Vitality Products + 700 to 1000 bps PolyOne Corporation Page 12 Prototype Frame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 4 11 5 10 6 9 3 4 2 15 9 1 10 4 Breakthrough Platform Derivative A Rich Pipeline of Opportunity Number of Projects 25 14 19 17 18 93 Addressable Market ($ millions) TBD TBD $800 $450 $450 $1,700 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 September 30, 2014 Debt Maturities & Pension Funding – 9/30/14 Net Debt / EBITDA* = 1.7x $48 $317 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Debt Maturities As of September 30, 2014 ($ millions) Coupon Rates: 7.500% 7.375% 5.250% ** includes US-qualified pension plans only *TTM 9/30/2014 PolyOne Corporation Page 15 Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return 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 1.5 million shares in Q3 2014 Repurchased 9.7 million shares since early 2013 10.3 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 $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 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?
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520Wells%2520Fargo%252005%252008%25202014%2520w%2520non%2520GAAP.pdf
Use of Non-GAAP Measures Page 3 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 Confirmation of Our Strategy The World’s Premier Provider of Specialized Polymer Materials, Services and Solutions Specialization Globalization Operational Excellence Commercial Excellence -150.00% -50.00% 50.00% 150.00% 250.00% 350.00% 450.00% PolyOne S&P 500 Russell 2000 Dow Jones Chemical All time high of $39.28 April 4th, 2014 • 18 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 6 Appliance 4% Building & Construction 13% Wire & Cable 9% Electrical & Electronics 5% Consumer 10%Packaging 16% Industrial 12% HealthCare 11% Transportation 18% Misc. 2% 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 7 PolyOne At A Glance United States 67% Europe 14% Canada 7% Asia 6% Latin America 6% Specialty 54% PP&S 18% Distribution 28% Mix Shift Highlights Specialty Transformation Page 8 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 pe ra tin g In co m e* JV's Performance Products & Solutions Distribution Specialty 65-75% Specialty OI $5M $46M $87M $195M $60M Target 2015 Target Proof of Performance & 2015 Goals 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* (after-tax) 5.0% 9.4% 15% 4) Adjusted EPS Growth N/A 42% Double Digit Expansion *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period 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 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 11 14.3% 30.7% 2006 2013 Specialty Platform Gross Margin % 19.5% 42.0% 2006 Q1 2014 Healthcare Consumer Packaging and Additive Technology Transportation Page 12 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 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 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 Investing in operational and initiatives that drive profitability growth Manufacturing realignment 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 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?