https://www.avient.com/sites/default/files/2022-08/reSound Bio -Swimming Goggle-Application Snapshot.pdf
AVIENT SOLUTION
SWIMMING GEAR
BRAND
S W I M G O G G L E G A S K E T A N D
N O S E B R I D G E
• Bio-content material
• Good adhesion to PC
• Flexible and comfortable to wear
• Easy to process
• Customized formulations for a transparent Shore 43A
TPE with 40% bio-based content for the gasket and a
natural 57A TPE with 30% bio-based content for the
nose bridge to meet sustainability and comfort targets
• Delivered excellent performance in order to pass strict
chlorine, brine, and QUV tests
• Offered prompt development and on-site technical
services to accelerate commercialization
KEY REQUIREMENTS
SUSTAINABILITY + SEALING
LEARN MORE
reSoundTM BIO Thermoplastic Elastomers
Copyright © 2022, Avient Corporation.
https://www.avient.com/sites/default/files/2020-07/gls-tpe-bayer-cap-english.pdf
GLS TPE - Bayer Cap - English
BAYER®
T P E O V E R M O L D E D C A P
• Easy to grip and open
• Design requirements:
• Raised logo
• Specific brand color
• Optimize retail shelf space/reduce packaging
• Improved packaging functionality for both
user (ergonomic design) and on shelf
(better stacking and reduced packaging)
• Offered value-add formulation that allowed
customer to extend brand differentiation in
the market
GLS™ Thermoplastic Elastomer
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2024-07/Versaflex TPE for Orthopedic Sole Insert - Application Snapshot.pdf
ORTHOPEDIC PARTS
MANUFACTURER
O R T H O P E D I C S O L E I N S E R T
• A super soft TPE (
https://www.avient.com/sites/default/files/2019-12/Fermium_IR_Deck_12.16.19_for_Website.pdf
Investor Day
FERMIUM
RESEARCH
MARKETING TRIP
D E C E M B E R 1 6 , 2 0 1 9
FORWARD LOOKING STATEMENTS
PolyOne Corporation 2
In this presentation, statements that are not reported financial results or other historical information are “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of 1995.
V I S I O N
PolyOne Corporation 4
To be the world’s
premier provider of
specialized polymer
materials, services and
solutions
C O R E
V A L U E S
P E R S O N A L
V A L U E S
Honesty IntegrityRespect
Operational
Excellence
Commercial
Excellence
Specialization
Globalization
Collaboration ExcellenceInnovation
To be the world’s
premier provider of
specialized polymer
materials, services
and solutions
S A F E T Y F I R S T
PolyOne Corporation 5
Injuries per 100 Workers
Spartech
Acquisition
1.3
1.1 1.1
0.85
0.65
0.57
0.54
0.97
0.84
0.74 0.74
0.69
0.51
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
PolyOne Corporation 6
P O L Y O N E
P R O F O R M A 2 0 1 8 R E V E N U E | $ 2 . 9 B I L L I O N *
Segment End Market Geography
15% Healthcare
15%
Wire & Cable
Building &
Electrical &
Electronics
Textiles
Color
Additives
& Inks
34%
Distribution
41%
Specialty
Engineered
Materials
25%
United States
54% Europe
20%
Latin
America
10%
*Pro Forma excluding PP&S and including Fiber-Line
P R O O F O F P E RFO RMAN CE
C O N S E C U T I V E
Y E A R S
10
A D J U S T E D E P S E X P A N S I O N
$1.51
$1.61
PolyOne Corporation 7
S U S T A I N A B L E P A T H T O D O U B L E - D I G I T E P S G R O W T H
PolyOne Corporation 8
P E O P L E P R O D U C T S P L A N E T P E R F O R M A N C E
Double digit
annual EPS
growth
Expand specialty portfolio
with strategic acquisitions
Innovate and develop new
technologies and services
Repurchase 600K-1M
shares annually
Increase commercial
resources 5-7% annually
Double acquired
company margins
Enhance efficiencies
through Lean Six Sigma
and commercial excellence
531
710130
164
504
663
R&D / Technical Marketing Sales
PolyOne Corporation 9
Increased commercial headcount
+ 34%
+ 26%
+ 32%
I N V E S T M E N T I N COMMERCIAL RESOURCES D R I V I N G G R O W T H
Sustained revenue increases led
by organic business
$2.9 $2.9
$3.2
$3.5
2015 2016 2017 2018
Total
+ 9%
Organic
+ 5%
Revenue in billions of $
Total
+ 10%
Organic
+ 7%
Lead
Specialists
T H E E V O L V I N G C U S T O M E R R E L A T I O N S H I P
PolyOne Corporation 10
Expanded Path
Traditional Path
Strategic Accounts/
Field Sales
Business
Development
Customer
Service
Web and Social
Media
Inside Sales
PolyOne Corporation 11
Investments in digital and dedicated inside sales to
improve customer experience
110% increase in leads (from 6,000 to 12,700) driven
by website, phone, and online chat
EXPANDED PATH
A D D I N G C U S T O M E R T O U C H P O I N T S
4
24
Inside sellers
$11M
$109M
Inside sales/digital revenue
A L I G N I N G W I T H T R E N D S F O R G R O W T H
T R A N S P O R T A T I O N P A C K A G I N G H E A L T H C A R E C O N S U M E R
PolyOne Corporation 12
Facilitate
alternative
energy
solutions
Light-
weighting
Reduce
packaging
materials
Improve
recyclability
Reduce
spread of
infection
I N N O V A T I O N
PolyOne Corporation 13
Customization
55%
M&A
30%
Innovation
Pipeline
15%
Innovation comes from Research & Development Spend
($ millions)
Vitality Index
% of sales from products launched last 5 years
35%
2006 2018
$20
$56
2006 2018
Transformational
Opportunity for Growth
Through M&A
Adjacent
Opportunity for
Growth Through New
Product Pipeline
Core
Customization
3 H O R I Z O N S O F D E V E L O P M E N T
PolyOne Corporation 14
Incremental
development
from existing
base of
technology
New development
adjacent to current
New technology
development
outside of and with
our current base
Service adjacent
markets and
Create new
markets, target
new customer
needs
Service existing
markets and
Market
Technical
I N N O V A T I O N
Non-Halogen Flame
Retardants
Barrier Technologies
Fiber Colorants
Advanced Composites
Thermoplastic Elastomers
Gordon Composites/
Polystrand – Composites
GLS – Thermoplastic Elastomers
ColorMatrix – Liquid Color & Additives
PlastiComp
Fiber-Line
I N N O V A T I O N S P O T L I G H T :
C O M P O S I T E S
PolyOne Corporation 15
C O M P O S I T E S R E F R E S H E R
PolyOne Corporation 16
Polymer
Composite
Strength
Design Flexibility
Continuous
Fiber
Thermoset
Short Glass
Fiber
Thermoplastics
Continuous Fiber
Long Glass Fiber
Thermoplastics
S T R A T E G I C I N V E S T M E N T H I S T O R Y
Acquired
Polystrand
Installed LFT
production
Avon Lake
Acquired
Gordon
Thermoplastic Composites
Long Fiber Reinforced Thermoplastics
Continuous Fiber Thermosets
Long Fiber
Thermoplastic
(LFT)
Technology
Installed LFT
production
Barbastro,
Spain
Acquired
Glasforms
Long Fiber Reinforced Thermoplastics
Continuous Fiber Thermosets
2012 2015 20162009 2011
Acquired
PlastiComp,
specialty LFT
producer
2018
PolyOne Corporation
Acquired
Fiber-Line,
specialty
fiber
processor
17
C O M P O S I T E S I N T R A N S P O R T A T I O N
PolyOne Corporation 18
W A T E R C R A F TR A I L H E A V Y T R U C K
Bulkheads and Transoms
Ceilings and Hatches
Doors and Cabinetry
Flooring
Door Panels
Side Walls
Flooring & Side Panels
Aerodynamic Fairings
Seat and Bunk
Reinforcements
P O L Y O N E A P P L I C A T I O N S I N F I B E R O P T I C C A B L E S
PolyOne Corporation 19
1.
Leverage
PolyOne’s
global reach
Phase 1 Phase 2
Phase 3
18-20%
operating
margins
Invest in
commercial
resources
I N V E S T - T O - G R O W P R O O F O F P E R F O R M A N C E
PolyOne Corporation 23
Commercial
Resources
Operating
Income
($ in millions)
Operating
Margins
243
340
$36
$96
20%
Established Acquisitions
(> 7 years)
+ 40% + 165% + 900 bps
I N V E S T - T O - G R O W D R I V I N G T H E F U T U R E
PolyOne Corporation 24
Commercial
Resources
Operating
Income
($ in millions)
Operating
Margins
138
181
251
$23 $25
$70
7% 8%
18-20%
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
$0.16
$0.20
$0.24
$0.32
$0.40
$0.48
$0.54
$0.70
$0.78
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Cumulative Share Repurchases
(In millions)
$0
$150
$300
$450
$600
$750
$900
2011 2012 2013 2014 2015 2016 2017 2018 2019
YTD
$917M
R E T U R N I N G C A S H T O S H A R E H O L D E R S
O V E R $ 1 . 2 B I L L I O N S I N C E 2 0 1 1
PolyOne Corporation
Increasing Annual Dividend
26
$0.81
PolyOne Corporation 27
W H Y I N V E S T I N P O L Y O N E ?
https://www.avient.com/sites/default/files/resources/PolyOne%2520Investor%2520Day%2520Presentation%2520NonGAAP%2520Reconciliation%2520-%2520May%252016%252C%25202012.pdf
Platform operating income mix percentage 2005Y 2008Y 2011Y
Global Specialty Engineered Materials $ 0.4 $ 17.6 $ 45.9
Global Color, Additives and Inks 4.3 28.1 43.4
Specialty Platform $ 4.7 $ 45.7 $ 89.3
Performance Products and Solutions 75.7 31.3 62.4
Distribution 19.5 28.1 56.0
SunBelt Joint Venture 91.9 28.6 5.0
Corporate (51.5) (425.1) 20.3
Operating income (loss) GAAP $ 140.3 $ (291.4) $ 233.0
Less: Corporate operating expense (income) 51.5 425.1 (20.3)
Operating income excluding Corporate $ 191.8 $ 133.7 $ 212.7
Specialty platform operating mix percentage 2% 34% 42%
Pro forma platform operating income mix percentage
2007
Pro forma
2011Y
Specialty Platform $ 30.6 $ 89.3
Pro forma ColorMatrix - 27.7
Specialty Platform pro forma ColorMatrix $ 30.6 $ 117.0
Performance Products and Solutions 65.8 62.4
Distribution 22.1 56.0
SunBelt Joint Venture 34.8 5.0
Corporate (73.3) 20.3
Operating income pro forma ColorMatrix $ 80.0 $ 260.7
Less: Corporate and SunBelt operating income 73.3 (25.3)
Operating income excluding Corporate operating income $ 153.3 $ 235.4
Specialty platform operating mix percentage 20% 50%
Adjusted EPS 2006Y 2007Y 2008Y 2009Y 2010Y 2011Y
Net Income $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 162.6 $ 172.6
SunBelt and OxyVinyls equity earnings, after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7)
Special items, after tax (21.2) 41.4 310.0 (31.0) 15.8 (30.5)
Tax adjustments (30.0) (30.7) 147.2 (44.9) (88.3) (42.3)
Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 75.4 $ 96.1
Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3
Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.79 $ 1.02
Adjusted EPS Q1 2011 Q1 2012
Net Income $ 110.2 $ 20.2
SunBelt equity earnings, after tax (3.7) -
Special items, after tax (79.8) 6.1
Tax adjustments (1.5) 0.1
Adjusted net income $ 25.2 $ 26.4
Diluted shares 96.4 90.7
Adjusted EPS $ 0.26 $ 0.29
Platform sales and operating income (OI) 2005 2006 2007 2008 2009 2010 2011
Global Specialty Engineered Materials Sales $ 282.5 $ 345.3 $ 384.4 $ 514.0 $ 402.9 $ 517.4 $ 575.1
Global Color, Additives and Inks Sales 503.7 531.8 560.5 554.3 459.8 527.4 544.6
Specialty Platform Sales $ 786.2 $ 877.1 $ 944.9 $ 1,068.3 $ 862.7 $ 1,044.8 $ 1,119.7
Performance Products and Solutions Sales 1,136.3 1,166.2 1,086.8 1,001.4 667.7 776.3 865.4
PolyOne Distribution Sales 679.2 732.8 744.3 796.7 625.1 911.9 996.5
Corporate and Eliminations (151.1) (153.7) (133.3) (127.7) (94.8) (111.1) (118.1)
Total Sales $ 2,450.6 $ 2,622.4 $ 2,642.7 $ 2,738.7 $ 2,060.7 $ 2,621.9 $ 2,863.5
Pro forma ColorMatrix Sales 196.0
Total sales pro forma ColorMatrix $ 3,059.5
Global Specialty Engineered Materials OI $ 0.4 $ 3.9 $ 4.9 $ 17.6 $ 20.6 $ 49.7 $ 45.9
Global Color, Additives and Inks OI 4.3 8.9 25.7 28.1 25.2 37.7 43.4
Specialty Platform OI $ 4.7 $ 12.8 $ 30.6 $ 45.7 $ 45.8 $ 87.4 $ 89.3
Performance Products and Solutions OI 75.7 64.2 65.8 31.3 33.1 54.0 62.4
PolyOne Distribution OI 19.5 19.2 22.1 28.1 24.8 42.0 56.0
Sunbelt Joint Venture OI 91.9 102.9 34.8 28.6 25.5 18.9 5.0
Corporate and eliminations (21.8) (4.6) (25.5) (28.9) (40.8) (32.5) (26.4)
Special items (29.7) 39.1 (47.8) (396.2) 48.7 4.8 46.7
Operating income (loss) GAAP $ 140.3 $ 233.6 $ 80.0 $ (291.4) $ 137.1 $ 174.6 $ 233.0
Sunbelt equity income (72.5) (107.0) (40.8) (32.5) (29.7) (23.1) (5.7)
Special items 29.7 (39.1) 47.8 396.2 (48.7) (4.8) (46.7)
Operating income adjusted $ 97.5 $ 87.5 $ 87.0 $ 72.3 $ 58.7 $ 146.7 $ 180.6
Operating income pro forma ColorMatrix 27.7
Operating income adjusted pro forma ColorMatrix
$ 208.3
Global Specialty Engineered Materials - OI as a
percentage of sales 0.1% 1.1% 1.3% 3.4% 5.1%
9.6%
8.0%
Global Color, Additives and Inks - OI as a
percentage of sales 0.9% 1.7% 4.6% 5.1% 5.5%
7.1%
8.0%
Specialty platform OI as a percentage of sales 0.6% 1.5% 3.2% 4.3% 5.3% 8.4% 8.0%
Specialty platform OI as a percentage of sales -
pro forma ColorMatrix
8.9%
Global Color, Additives and Inks OI as a
percentage of sales – pro forma ColorMatrix
9.6%
PP&S operating OI as a percentage of sales 6.7% 5.5% 6.1% 3.1% 5.0% 7.0% 7.2%
Distribution OI as a percentage of sales 2.9% 2.6% 3.0% 3.5% 4.0% 4.6% 5.6%
PolyOne OI adjusted, as a percentage of sales 4.0% 3.3% 3.3% 2.6% 2.8% 5.6% 6.3%
PolyOne OI adjusted, pro forma for ColorMatrix,
as a percent of sales
6.8%
Operating income (OI) Q1 2011 Q1 2012
Global Specialty Engineered Materials OI $ 14.0 $ 11.8
Global Color, Additives and Inks OI 11.2 17.3
Specialty Platform OI $ 25.2 $ 29.1
Performance Products and Solutions OI 14.3 17.8
PolyOne Distribution OI 14.7 16.7
Corporate and eliminations (1.6) (10.2)
Special items 127.2 (8.5)
Operating income (loss) GAAP $ 179.8 $ 44.9
Research and Development (R&D) – Pro forma ColorMatrix 2011
PolyOne R&D $ 36.9
ColorMatrix R&D 3.6
Pro forma R&D $ 40.5
Gross Margin as a percentage of Sales
2006 2011
2011
Pro forma
ColorMatrix
Specialty platform sales $ 877.1 $ 1,119.7 $ 1,315.7
Specialty platform gross margin 125.2 263.4 345.9
Specialty platform gross margin percentage 14.3 % 23.5 % 26.3 %
Average Debt Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Average
PolyOne Debt $ 452.9 $ 432.9 $ 432.9 $ 432.9 $ 707.0 n/a
Pro forma ColorMatrix 274.1 274.1 274.1 274.1 - n/a
Total Debt $ 727.0 $ 707.0 $ 707.0 $ 707.0 $ 707.0 $ 711.0
Average Equity Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Average
PolyOne $ 516.0 $ 615.2 $ 629.6 $ 608.5 $ 588.3 $ 591.5
https://www.avient.com/sites/default/files/2022-07/Avient 2021 Sustainability Report 7-26-22.pdf
D&I at Avient is a shared
value and position, but it’s crucial for me to lead by example.”
Since 2014, we have significantly increased our commercial
resources in R&D, Sales and Marketing.
FROM PRODUCTS INTRODUCED
IN THE LAST 5 YEARS
35% of specialty
sales
R&D Spend
U
.S
.
https://www.avient.com/sites/default/files/2020-10/trilliant-xr-product-bulletin.pdf
PRODUCT BULLETIN
PROPERTY TEST METHOD TYPICAL VALUE
(ENGLISH)
TYPICAL VALUE
(SI)
Specific Gravity ASTM D-792 11.0 11.0
Tensile Modulus1 ASTM D-638 1.20E+6 psi 8270 MPa
Tensile Strength1 (Yield) ASTM D-638 3,950 psi 27.2 MPa
Flexural Modulus ASTM D-790 800,000 psi 5520 MPa
Flexural Strength ASTM D-790 7,000 psi 48.3 MPa
Notched Izod Impact2 ASTM D-256A 2.1 ft•lb/in 110 J/m
Deflection Temperature Under Load
66 psi (0.45 MPa), Unannealed,
0.250 in (6.35mm)
ASTM D-648 280°F 138°C
Deflection Temperature Under Load
264 psi (1.8 MPa), Unannealed,
0.250 in (6.35mm)
ASTM D-648 190°F 87.8°C
TECHNICAL PROPERTIES
1 Type I, 0.20 in/min (5.1 mm/min)
2 73°F (23°C), 0.125 in (3.18 mm), Injection molded
www.avient.com
Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2020-03/PolyOne_Website-12.19.pdf
T O D A Y ’ S P R E S E N T E R S
Robert M.
S A F E T Y F I R S T
PolyOne Corporation 7
Injuries per 100 Workers
Spartech
Acquisition
1.3
1.1 1.1
0.85
0.65
0.57
0.54
0.97
0.84
0.74 0.74
0.69
0.51
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
G R E A T P L A C E T O W O R K
PolyOne Corporation 8
* Pro Forma for sale of DSS
Operating Income
% of Sales
2006 Q3 YTD
2019
Color, Additives &
Inks
1.7% 15.5%
Specialty Engineered
Materials
1.1% 11.8%
Distribution 2.6% 6.3%
2009 2010 2011 2012 2013 2014 2015 2016*2017* 2018
$2.43
P R O O F O F P E R F O R M A N C E
C O N S E C U T I V E
Y E A R S
PolyOne Corporation 9
10
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
$2.06
$2.21
A D J U S T E D E P S E X P A N S I O N
2018 2019E
$1.65
$1.51
Pro Forma for sale
of PP&S
T R A N S F O R M A T I O N H E A D L I N E S
PolyOne Corporation 10
C O M M O D I T Y T O S P E C I A L T Y T R A N S F O R M A T I O N
PolyOne Corporation 11
• Volume driven,
commodity
production
• Heavily tied to cyclical
end markets
• Performance largely
dependent on non-
controlling joint
ventures
• Shift to value-based
selling & an innovative
culture
• New leadership team
appointed
• Implementation of
four pillar strategy
• Investment in
commercial training
and innovation
• Faster growing, high
margin focus
• Accelerated growth
with world class
vitality index
• Significant
commercial resource
additions
• Expanded margins
with specialty focus
• Acquired strategic,
bolt-on companies to
expand technology
offerings and improve
geographic breadth
Volume Value Transformation The Future
2006 - 2013 2013 – 20192000-2005 2006 - 2013
• Landmark portfolio
transformation
creates specialty
growth company
• Sustainability / mega-
trends drive above
market growth
2020 and
Beyond
F I T W I T H F O U R P I L L A R S T R A T E G Y
PolyOne Corporation 12
Specialization
• Innovation-led organization with
heavy emphasis on R&D
• World-class expertise in color
formulation
• Strong presence in specialty end
markets including Consumer,
Packaging and Healthcare
Globalization
• Diverse geographic portfolio with
an established presence in every
major region
• Expands PolyOne’s ability to serve
customers in key growth areas
including India, China and
Southeast Asia
Operational
• Extensive manufacturing footprint
with 46 facilities
• Organizational focus on optimizing
supply chain to better serve
customers
• Color design expertise
Commercial
• Value-focused salesforce with vast
experience marketing and
commercializing specialty
technologies
• Diverse customer portfolio with
established OEM’s
People
Experienced and
talented
associates with a
winning mentality
L E V E R A G I N G G L O B A L M E G A T R E N D S
13
Facilitate
alternative
energy
solutions
Light-
weighting
Reduce
packaging
materials
Improve
recyclability
Reduce
spread of
infection
T R A N S P O R T A T I O N P A C K A G I N G H E A L T H C A R EC O N S U M E R
PolyOne Corporation
E N D M A R K E T T R A N S F O R M A T I O N
PolyOne Corporation 14
Building & Construction
18%
8%
50%
22%
High Growth End Markets
Percentage of Total Revenue
38%
E N D M A R K E T T R A N S F O R M A T I O N
PolyOne Corporation 15
8%
Building &
Construction
38%
Wire &
Cable
11%
Industrial
Electrical &
Electronic
7%
Transportation
18%
Building &
Construction
Wire &
Cable
Industrial
Electrical &
Electronic
Appliance
3%
Textiles
Transportation
13%
C O M P L E M E N T A R Y G E O G R A P H I C P R E S E N C E
PolyOne Corporation 16
38% Europe
33%
Asia
19%
22%
Europe
Asia & Middle East
31%
1%
Color & Engineered
Materials
Clariant Color & Additive
Masterbatch Business
Net Sales by Geographic Region
31%
Europe
36%
Asia & Middle East
24%
3%
Pro Forma Color &
Engineered Materials
531
710
1,042
130
164
208
504
663
880
2014 2018 2019E PF*
R&D / Technical Marketing Sales
PolyOne Corporation 17
+ 34%
+ 26%
+ 32%
E X P A N S I O N O F COMMERCIAL RESOURCES D R I V I N G G R O W T H
$2.9 $2.9
$3.5
2015 2016 2017 2018 2019E
PF
Total
+ 9%
Organic
+ 5%
Revenue in Billions
Total
+ 10%
Organic
+ 7%+ 47%
+ 27%
+ 33%
$4.0
$3.2
2019E PF*
P R I O R A C Q U I S I T I O N S : P R O O F O F P E R F O R M A N C E
PolyOne Corporation 18
Commercial
Resources
Operating
Income
($ in millions)
Operating
Margins
243
340
$36
$96
11%
Established Acquisitions
(> 7 years)
+ 40% + 165% + 900 bps
U N I F I E D F O C U S O N S U S T A I N A B I L I T Y
PolyOne Corporation 19
2006 - 2013
2013 – 2019
PEOPLE
PRODUCTS PLANET
PERFORMANCE
Clariant Color & Additive
Masterbatch Business
• Building mini-recycling plants to
facilitate customer projects on
design for recycling - CycleWorks
• Uses packaging additives &
colorants to improve recyclability
and enhance automated sorting
• Manufactures oxygen scavengers
to extend shelf-life of perishable
items and reduce material
requirements
• Combines UV-blocking additive
colorants & other barriers to
prevent spoilage and waste
• Offers spin-dyeing solutions that
use significantly less water than
traditional methods, allowing for
sustainable coloration of textiles
• Produces infrared absorbing
additives that reduce energy
requirements for bottle
manufacturing
($ in millions)
(Continuing
Operations)
Clariant Color &
Additive Masterbatch
Business
Synergies
New
2019E Total Sales $2,860 $1,150 $4,010
2019E Adjusted EBITDA $310 $130 $60 $500
% Margin 10.8% 11.3% 12.5%
2019E CapEx $60 $85
% Sales 2.1% 2.1%
2019E Free Cash Flow $170 $250
2019E Adjusted EPS $1.65 $2.22
2019E PF Adjusted EPS $1.65 $2.50
P O L Y O N E + C L A R I A N T C O L O R & A D D I T I V E
M A S T E R B A T C H B U S I N E S S
PolyOne Corporation 20
(1) Excludes step-up of depreciation & amortization related to purchase accounting of transaction
(1)
$0.85/share
O V E R 8 5 % O F A D J U S T E D E B I T D A F R O M S P E C I A L T Y
PolyOne Corporation 21
46%
66%
0%
60%
80%
100%
2005 2010 2015 2019E PF
%
o
f
A
d
ju
s
te
d
E
B
IT
D
A
*
JV's Performance Products & Solutions Distribution Specialty
7%
87%
* Adjusted EBITDA is EBITDA excluding corporate costs and special items
** 2019E Pro Forma for PP&S Divestiture and Clariant Color & Additive Masterbatch business acquisition with synergies
Specialty EBITDA $14M $117M $273M $500M
**
PolyOne Corporation 22
T R A N S A C T I O N O V E R V I E W
• Expected mid-2020, subject to regulatory approvals and customary closing conditions
Closing
Conditions /
Timing
• Committed financing in place
• Permanent financing to be combination of available cash on-hand, new debt and equity component to limit leverage
• Equity issuance of $400 to $500MM
• Target net leverage below 3.5x, 3.1x synergized, with intention to de-lever below 3.0x within 2 years
PolyOne Corporation 23
• $1.45 B net purchase price
• Represents 11.1x adjusted EBITDA (excluding synergies), 7.6x adjusted EBITDA (including synergies)
• Pre-tax synergies of $60MM expected to be fully realized by the end of 2023
• Synergies realized from sourcing, operational, technology / commercial, and general administrative
Transaction
Value
Synergies
Estimated Synergy Breakdown
$60MM
• Expect EBITDA synergies of $60MM
– Proven integration expertise with a decade of acquisition experience
– Administrative synergies reflect reduction of duplicative internal and
third-party costs
• Run rate synergies of $20MM by the end of Year 1 with $60MM
achieved by the end of Year 3
• Significant additional opportunity for geographical expansion
– Clariant Color & Additive Masterbatch business has complementary
regional presence in key growth areas including India & Southeast
Asia
• Opportunity to accelerate growth with a combined portfolio of
innovative solutions aligned with sustainability megatrends
Sourcing
Operational
30%
Administrative
30%
PolyOne Corporation 24
S I G N I F I C A N T S Y N E R G Y O P P O R T U N I T I E S
C A P I T A L S T R U C T U R E / L E V E R A G E
PolyOne Corporation 25
At Close Year 1 Year 2
3.2x
3.5x
3.1x
2.6x
Pro Forma with Synergies
2019E PF
Two year leverage goal
(1) Pro Forma Capitalization is for illustrative purposes only; amounts may vary depending on various market and other factors.
https://www.avient.com/sites/default/files/2021-04/trilliant-hc8900-medical-device-housing-case-study.pdf
DEVICE
MANUFACTURER
M E D I C A L D E V I C E H O U S I N G
• Improved chemical resistance compared to PC/ABS,
PC/PET & COPE
• Flame retardant (FR) rating of V-1 at 0.75 mm
• Zero BPA & non-halogenated FR material
• Available in standard hospital grade pre-colors
• Provided a cost-effective material with superior
chemical resistance to traditional materials
• Formulated a medical-grade, semi-crystalline
blend to support regulatory testing and
approvals
• Demonstrated superior property retention and
crack resistance after exposure to hospital-
grade disinfectants, including Virex® Tb,
helping to extend the device life
Trilliant™ HC8900 Thermoplastics
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2020-08/complet-lft-baseball-bat.pdf
SPORTING
GOODS BRAND
I N J E C T I O N M O L D E D
B A S E B A L L B A T
• Meet BBCOR safety standard for coefficient of restitution
• High stiffness and toughness to hold up to ball impacts
without excessive vibration
• Variable feel, sound, and “sweet spot” for user preference
• Provided a unique solution allowing the bat
to be manufactured with injection molding
instead of thermoset layup process to lower
production cost
• Designed unique two-part barrel and
handle construction which enables tailoring
weight and balance performance to player
Complēt™ Long Carbon Fiber ETPU
Composite
KEY REQUIREMENTS WHY AVIENT?