https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520–%2520Goldman%2520Sachs%2520Conference%25202015.pdf
PolyOne Corporation Page 1 PolyOne Investor Presentation Goldman Sachs Basic Materials Conference May 2015 PolyOne Corporation Page 2 Forward-Looking Statements 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.
They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements.
Appendix Q1 2015 Financial Highlights At a Glance�Global Color, Additives and Inks At a Glance�Global Specialty Engineered Materials At a Glance�Designed Structures and Solutions At a Glance�Performance Products and Solutions At a Glance�Distribution Plastics: Key to Future Sustainable Development Commitment to Operational Excellence Application Examples Slide Number 28 Authentication Technology 2015 Range Rover Evoque Interior Slide Number 31 Metal Replacement Solutions Next Generation Solar Charger High-Barrier Packaging Containers Aerospace Applications
https://www.avient.com/knowledge-base/article/no-gambling-successful-molded-color-transition
MIC efficiently applies attractive and durable colors and effects in the plastic injection molding process.
Their mastery of materials, design and process has uniquely equipped them to solve this problem.
https://www.avient.com/knowledge-base/article/metal-replacement
So why consider plastics in lieu of metal?
These materials resist temperature and corrosion in ways that metal cannot always match.
https://www.avient.com/knowledge-base/article/no-gambling-successful-molded-color-transition?ind[]=6601
MIC efficiently applies attractive and durable colors and effects in the plastic injection molding process.
Their mastery of materials, design and process has uniquely equipped them to solve this problem.
https://www.avient.com/knowledge-base/article/no-gambling-successful-molded-color-transition?rtype[]=1164
MIC efficiently applies attractive and durable colors and effects in the plastic injection molding process.
Their mastery of materials, design and process has uniquely equipped them to solve this problem.
https://www.avient.com/news/archives?page=44
SHANGHAI – Oct 31, 2018 – PolyOne is highlighting its its full portfolio of medical plastics, including an extensive range of medical colorants an
CLEVELAND – October 31, 2018 – At MD&M Minneapolis today, PolyOne Corporation announced that Trilliant™ HC material outperforms FR
https://www.avient.com/news/archives?page=3
Cesa™ WithStand™ SX Low Haze Antimicrobial Additives Now Available for Clear Plastic Applications
Avient announces expansion to Cesa™ functional additives and NEUSoft™ TPU portfolios and will highlight its innovative material solutions for heal
https://www.avient.com/news/archives?page=56
CLEVELAND – July 26, 2016 – PolyOne Corporation (NYSE: POL), a premier global provider of specialized polymer materials, services and solutions, t
SHANGHAI – PolyOne today announced it has received a 2016 Ringier Technology Innovation Award for its OnCap™ Fragrance Technologies in the Plastic
https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202012%2520-%2520Specialization.pdf
McAlindon (24) Page 24 Award-Winning Marketing Campaign Page 25 2012 Range Rover Evoque Interior • Color harmonization across 15 unique color-and-polymer combinations • Eliminated need for multiple pre- colored materials • Reduced Land Rover’s working capital Page 26 KOR Delta Hydration Vessel • Specialty TPE formulation overcame performance issues • Eliminated secondary assembly process for increased operational efficiency Interior seal Flip-top seal Bottom ring Page 27 Friedrich Kühl® Decorative Air Conditioner Housing • Replaced painted ABS housing with Geon™ solution • Reduced operating noise • Simplified manufacturing footprint to drive significant cost savings Page 28 • Focused on markets with high growth and profit potential • Leveraging our in-depth knowledge of formulation Focused Efforts in Attractive Industry Segments $113 $260 Healthcare and processing to develop market driven solutions • Aligning resources across the organization to drive growth in target markets $152 $228 2006 2011 Sustainable Solutions (Revenue in $ millions) 2006 2011 2006 2011 2006 2011 Page 29 • Design service collaboration • Doubled productivity and improved yield rates • Substantial reduction in overall manufacturing costs Pulmonary Device Page 30 Innovating for the future… Rejuvenate a mature industry with new products and processes Products designed for “next life” instead of “end life” Plastics: Key to Future Sustainable Development …Making a difference today!
end life” New designs for energy and carbon efficiency New applications for used and recycled plastics Page 31 Therma-Tech™ LED Lighting • Replaces metal in LED lighting • Extends LED durability and life span eliminating hot spots • Greater design flexibility with • Greater design flexibility with fewer parts • Weight reduction • Simplifies manufacturing and lowers total production cost Page 32 Decreasing Decreasing Dependence on Dependence on Fossil FuelsFossil Fuels Globalizing and Globalizing and LocalizingLocalizing Protecting the Protecting the EnvironmentEnvironment Protecting the Protecting the EnvironmentEnvironment Improving Improving Health and Health and WellnessWellness Improving Improving Health and Health and WellnessWellness Alignment with Megatrends • Aging population • Longer life expectancy • Healthy living • Aging in place • Aging population • Longer life expectancy • Healthy living • Aging in place • Environmental consciousness • Alternative energy • Resource efficiency • Biotechnology • Environmental consciousness • Alternative energy • Resource efficiency • Biotechnology • Global leader/local expert with customized solutions • Global OEMs seeking one standard of service everywhere • Global leader/local expert with customized solutions • Global OEMs seeking one standard of service everywhere • Efficiency focus • Reduced size/weight • Mass transit • Alternative materials • Electric vehicles • Efficiency focus • Reduced size/weight • Mass transit • Alternative materials • Electric vehicles Page 33 48.7% $40.5 26.3% Research & Development Spending Specialty Platform Vitality Index Progression* Innovation Drives Earnings Growth Specialty Platform Gross Margin % * Percentage of Specialty platform revenue from products introduced in last five years 19.5% 2006 2011PF $20.3 2006 2011PF 14.3% 2006 2011PF ($ millions) Page 34 StrategyStrategy PolyOne Innovation Framework Unmet Needs Identification Idea Generation and Shaping Offering Offering Offering Offering Phased Offering Launch Offering Offering LaunchLaunch Offering Offering DevelopmentDevelopment Market Penetration and Value Maximization Intellectual Property ● Resources ● CultureIntellectual Property ● Resources ● Culture Page 35 • Accelerate growth in targeted industries and expand geographic presence through market-driven innovations • Leverage new talent, tools, and training to drive customer satisfaction and margin expansion Critical Imperatives satisfaction and margin expansion • Translate best practices to / from ColorMatrix • Drive specialization using a value-based mindset Page 36 Page 37
https://www.avient.com/sites/default/files/resources/Wells%2520Fargo%2520Conference%2520-%2520IR%2520Presentation%25205-6-2015%2520-%2520wNon%2520GAAP%2520and%2520Appendix.pdf
They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements.
Addressable market exceeds $40 billion Strong performance demonstrates that our strategy and execution are working Megatrends and emerging opportunities align with our strengths Innovation and services provide differentiation, incremental pricing power, and competitive advantage Strong and proven management team driving growth and performance PolyOne Corporation Page 17 Appendix PolyOne Corporation Page 18 $0.44 $0.46 $0.40 $0.45 $0.50 Q1 2014 Q1 2015 Adjusted EPS $30 $34 $25 $30 $35 Q1 2014 Q1 2015 GCAI Operating Income (in millions) $18 $23 $15 $20 $25 Q1 2014 Q1 2015 GSEM Operating Income (in millions) Q1 2015 Financial Highlights Global Specialty Engineered Materials’ operating margin of 16.3% above the 2015 target Global Color Additives and Inks’ operating margin grew to 16.2% Adjusted EPS growth despite unfavorable foreign exchange and market dynamics • Ex. currency, EPS grew 10.5% +5% +26% +11% PolyOne Corporation Page 19 Appliances 2% Building & Construction 12% Consumer 7% Electrical & Electronics 1% Healthcare 6% Industrial 14% Packaging 31% Textiles 7% Transportation 8% Wire & Cable 12% 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 12-16% 16.2% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2015 Operating Income % of Sales At a Glance Global Color, Additives and Inks 2014 Revenues: $0.9 Billion Solutions Expanding Profits 2014 Revenue by Industry Segment 14.7% Target United States 44% Europe 36% Canada 2% Asia 12% Latin America 6% PolyOne Corporation Page 20 Appliances 4% Building & Construction 3% Consumer 18% Electrical & Electronics 16% Healthcare 12% Industrial 8% Packaging 5% Transportation 20% Wire & Cable 12% At a Glance Global Specialty Engineered Materials 2014 Revenues: $0.6 Billion Solutions 2014 Revenue by Industry Segment Expanding Profits 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 12-16% 16.3% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2015 Operating Income % of Sales Target 12.1% United States 44% Europe 33% Canada 2% Asia 19% Latin America 2% PolyOne Corporation Page 21 Appliances 2% Building & Construction 8% Consumer 5% Healthcare 6% Industrial 23% Packaging 27% Transportation 30% United States 96% Canada 4% At a Glance Designed Structures and Solutions Solutions 2014 Revenues: $0.6 Billion Expanding Profits 2014 Revenue by Industry Segment 1.4% 5.6% 7.3% 2.7% 8-10% 2012 2013 2014 Q1 2015 2015 Operating Income % of Sales Target PolyOne Corporation Page 22 Appliances 8% Building & Construction 33% Consumer 5% Electrical & Electronics 3% Healthcare 1% Industrial 11% Packaging 5% Transportation 18% Wire & Cable 16% 5.5% 6.9% 3.8% 3.6% 5.5% 4.3% 6.3% 7.2% 6.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2015 Operating Income % of Sales At a Glance Performance Products and Solutions Solutions Expanding Profits 2014 Revenues: $0.8 Billion 9-12% Target 2014 Revenue by Industry Segment 7.7% United States 80% Canada 14% Asia 2% Latin America 4% PolyOne Corporation Page 23 Appliances 6% Building & Construction 5% Consumer 13% Electrical & Electronics 6% Healthcare 23% Industrial 15% Packaging 4% Transportation 25% Wire & Cable 3% 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% 6.4% 5.9% 5.9% 6-7.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2015 Operating Income % of Sales 15% 52% 2006 2014 At a Glance Distribution Key Suppliers 2014 Revenues: $1.1 Billion ROIC Expanding Profits 6.1% Target http://www.polyone.com/Pages/VariationRoot.aspx PolyOne Corporation Page 24 2 lbs Plastic = 3 lbs aluminum or 8 lbs steel or 27 lbs glass 33% less material by weight than aluminum 75% less material by weight than steel 93% less material by weight than glass Requires 91% less energy to recycle a pound of plastic versus a pound of paper Source: SPI: Sustainability and the Plastics Industry Plastics: Key to Future Sustainable Development PolyOne Corporation Page 25 Commitment to Operational Excellence 81% 93% 2006 2014 16.2% 9.9% 2006 2014 On-Time Delivery Working Capital % of Sales 5% 43% 2006 2014 Percent of Associates Trained in LSS Four consecutive years – CFO Magazine Best Working Capital Management in the chemical industry World’s Best Business Process Excellence Program in 2012* 103 trained Black Belts 247 trained Green Belts 127 trained Kaizen Leaders World’s Best Start-up Program for Lean Six Sigma Deployment in 2009* *Both awards received from International Quality and Productivity Center PolyOne Corporation Page 26 Application Examples PolyOne Corporation Page 27 $1.5 billion attractive, growing market Additives improve performance and reduce cost through light-weighting, reduced waste, faster cycle times, and extended shelf life of finished product Aligned with megatrend of protecting the environment: Sustainability benefits include lower package weight and improved recyclability of package at end of use Market Opportunity Leading Global Supplier of Additives In Growing PET Market Shelf-life extension Greater product consistency Recyclability and reduced carbon footprint Color and Special Effects Weight reduction Enhanced product aesthetics High heat resistance PET Bottling Technology 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2009 2014 2019 Asia Pacific North America Latin America Western Europe Eastern Europe Middle East and Africa Global PET Packaging Growth 2009-2019 Source: Euromonitor retail off-trade consumption (PET bottles & jars, home care, personal care, food & non-alcoholic beverages) B ill io n un its 5% CAGR PolyOne Corporation Page 28 • Includes formulation and consultative services to assist manufacturers and brand owners in positively identifying their finished goods • Protects brand equity & consumer welfare • Reduces exposure to unwarranted recall expenses • Secures supply chain integrity – support for safe expansion into new geographies Authentication Technology PolyOne Corporation Page 29 • Color harmonization across 15 unique color-and-polymer combinations • Eliminated need for multiple pre- colored materials • Reduced Land Rover’s working capital 2015 Range Rover Evoque Interior PolyOne Corporation Page 30 • Reduced health and environmental impact • System cost reduction • Radiation-shielding performance • Parts consolidation • Design freedom CT Scanner PolyOne Corporation Page 31 Metal Replacement Solutions • Replaces metal in LED lighting • Extends LED durability and life span eliminating hot spots • Greater design flexibility with fewer parts • Weight reduction • Simplifies manufacturing and lowers total production cost PolyOne Corporation Page 32 Next Generation Solar Charger • Ginkgo Solar Tree charger utilizing our unique reSound™ material • reSound™ is a durable material consisting of 50% bio-derived plastic and 50% traditional petroleum-based plastic • Use of reSound™ reduced the carbon footprint for this product by 35% • reSound™ Is classified as a PolyOne Sustainable SolutionSM PolyOne Sustainable SolutionSM PolyOne Corporation Page 33 High-Barrier Packaging Containers • Capability to extrude up to 13 layers • Strong oxygen and moisture vapor transmission protection • Can be made symmetrical or asymmetrical to meet customized needs of broad variety of applications • Barrier protection and superior organoleptic properties PolyOne Corporation Page 34 Aerospace Applications • Leading provider of specialty materials for the aerospace industry • Typical applications Mil-spec aircraft windows, canopies, windscreens, instrument panels, wingtip lenses Interior – gallery furnishings, tray tables, arm rests, trim strips, joint/edge coverings • Benefits: High impact strength Resistant to UV rays Flame and smoke compliance Easy to clean with aggressive cleaners; anti-microbial grades available Range of sizes, thicknesses, colors, etc. 1 Schedule I Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with U.S.
Appendix Q1 2015 Financial Highlights At a Glance�Global Color, Additives and Inks At a Glance�Global Specialty Engineered Materials At a Glance�Designed Structures and Solutions At a Glance�Performance Products and Solutions At a Glance�Distribution Plastics: Key to Future Sustainable Development Commitment to Operational Excellence Application Examples Slide Number 27 Authentication Technology 2015 Range Rover Evoque Interior Slide Number 30 Metal Replacement Solutions Next Generation Solar Charger High-Barrier Packaging Containers Aerospace Applications Wells Fargo - May 6 2015 r63 Wells Fargo - May 6 2015