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CEO, Industry Leader
C O M M E R C I A L
R E S O U R C E S
I N N O V A T I O N
S E R V I C E
I N S P I R E D F U T U R E
6-8% annual increase in commercial resources
8% more sales calls annually
10% annual expansion of sales funnel,
including advances in barrier additives and
fiber colorants
12-15% compound annual operating income growth
16-18% operating margins
PolyOne Corporation 93
M & A R E V I E W
J O E L R A T H B U N
PolyOne Corporation 94
TPE
O V E R A D E C A D E O F S U C C E S S F U L S P E C I A L T Y A C Q U I S I T I O N S
PolyOne Corporation 95
PolyOne Corporation 96
Safety Technology Geography Service FinancialPeople
Low EH&S
risk profile
New and
complementary
technologies
Leverage our
global footprint
Strong
customer
relationships
Foundational
operating
margins of
8-10% with
ability to double
Motivated team
with a specialty
culture
I N V E S T - T O - G R O W S T R A T E G Y
PolyOne Corporation 97
Capture
sourcing
synergies
Cross-sell
& blend
technology
8-10%
operating
margins
I N V E S T - T O - G R O W P L A Y B O O K
Protect
customers
Retain
employees
Implement LSS to
drive efficiency
improvements
Innovate with
combined
portfolio
Safety
First!
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 98
Commercial
Resources
Operating
Income
($ in millions)
Operating
Margins
243
335
At Acquisition Today
$36
$90
At Acquisition Today
11%
20%
At Acquisition Today
Established Acquisitions
(> 7 years)
+ 40% + 150% + 900 bps
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 99
Commercial
Resources
Operating
Income (millions)
53
109
At Acquisition Today
187
214
At Acquisition Today
3
12
At Acquisition Today
$12
$45
At Acquisition Today
$22
$42
At Acquisition Today
$2
$4
At Acquisition Today
Acquisition #1
(10 years)
Acquisition #3
(7 years)
Acquisition #2
(9 years)
EBITDA
Multiple
10.5x
3.0x
At Acquisition Today
11.1x
7.6x
At Acquisition Today
4.9x
2.8x
At Acquisition Today
10%
23%
At Acquisition Today
11%
17%
At Acquisition Today
21%
30%
At Acquisition Today
Return on Sales
I N V E S T - T O - G R O W D R I V I N G T H E F U T U R E
PolyOne Corporation 100
Commercial
Resources
Operating
Income
($ in millions)
Operating
Margins
17
44
65
At Acquisition Today Goal
$0 $0
$25
At Acquisition Today Goal
0% 0%
20%
At Acquisition Today Goal
Advanced Composites
I N V E S T - T O - G R O W D R I V I N G T H E F U T U R E
PolyOne Corporation 101
Commercial
Resources
Operating
Income
($ in millions)
Operating
Margins
96
100
141
At Acquisition Today Goal
$16
$18
$36
At Acquisition Today Goal
11% 12%
18-20%
At Acquisition Today Goal
Recent Color Acquisitions
PolyOne Corporation 102
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
S U M M A R Y
PolyOne Corporation 103
Proven track record with specialty acquisitions using
invest-to-grow strategy
Our approach to integration differentiates PolyOne in
a competitive M&A market
Trusted brand and reputation
Buyer of choice
Robust pipeline with a range of opportunities that fit
our strategy
F I N A N C I A L
R E V I E W
B R A D R I C H A R D S O N
PolyOne Corporation 104
PolyOne Corporation 105
A D J U S T E D E P S E X P A N S I O N
2009 2010 2011 2012 2013 2014 2015 2016* 2017*
C O N S E C U T I V E
Y E A R S
8
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
$2.06
$2.21
*Pro Forma for sale of DSS
PolyOne Corporation 106
S T R A T E G I C C A S H D E P L O Y M E N T
ORGANIC GROWTH
Investing in R&D and
capacity
11
Maintenance
40%
Strategic Growth
Investments
60%
Capital Expenditures
M&A OPPORTUNITIES
Continued pursuit of strategic bolt
on acquisitions that expand
specialty offerings
2
SHAREHOLDER RETURN
Dividends and share buybacks3
Over $400
million
M&A Spending
Since 2014
$809
million
Share Repurchases
2011-Q1 2018
60%
Increase in annual
dividend over next three
years
2011 2013 2015 2017
2006 2017
“Where we were” “Where we are”
ROIC 5.0% 14.0%
Operating Income % of Sales
Color, Additives & Inks 1.7% 15.5%
Specialty Engineered Materials 1.1% 12.1%
Performance Products &
Solutions 4.3% 10.7%
Distribution 2.6% 6.3%
P R O O F O F P E R F O R M A N C E
E X P A N D I N G M A R G I N S & R O I C
PolyOne Corporation 107
531
680130
153
504
618
2014 Q1 2018
R&D / Technical Marketing Sales
I N V E S T M E N T I N C O M M E R C I A L R E S O U R C E S D R I V I N G R E S U L T S
PolyOne Corporation 108
Increased commercial headcount
Largest organic revenue growth
since recession
$2.9 $2.9
$3.2
2015 2016 2017
Revenue in billions of $
+ 28%
+ 18%
+ 23%
Total + 10%
Organic + 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 109
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 6-8% annually
Double acquired
company margins
Enhance efficiencies
through Lean Six Sigma
and commercial excellence
6.3%
14.0%
15.0%
16-17%
2009 2017 Platinum Vision Updated Expectations
R O I C D R I V E S S H A R E H O L D E R R E T U R N
PolyOne Corporation 110
R O I C D R I V E S S H A R E H O L D E R R E T U R N
6.3%
14.0%
15.0%
16-17%
2009 2017 Platinum Vision Updated Expectations
PolyOne Corporation 111
$570
$1,650 $1,750
$2,000
2009 2017 Platinum Vision Updated Expectations
ROIC
Invested Capital
($ in millions)
Improving ROIC + Expanding Invested Capital = Outperforming the Market
C O N C L U S I O N
B O B P A T T E R S O N
PolyOne Corporation 112
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 shareholders and diluted adjusted earnings per share (EPS)
from continuing operations attributable to PolyOne shareholders, excluding special items, to assess performance and facilitate comparability of results.
Investor Day Deck - Web
Investor Day
Forward �Looking �Statements
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
USE OF �NON-GAAP�MEASURES
Investor Day Agenda May 10, 2018
The Leaders Behind the Team
Introduction
Historic Past
Sustainability AT PolyOne
Safety First
the PolyOne Academy
Sustainably Impacting diverse End Markets
Products and Portfolio Optimization
OUR PLANET
Sustainability AT PolyOne
Adjusted EPS Expansion
Early years defined by Specialty �mix improvement
Commodity Pruning �Held Organic Sales Flat
Investment in Commercial Resources Driving Results
Sustainable Path to Double-Digit EPS Growth
Raising the Bar�ROIC drives shareholder return
Commercial Excellence
STRATEGIC INVESTMENT IN 3 KEY AREAS
Key Commercial Investments
New Resources Fueling the Future
Aligning with trends for Growth
Innovation
3 Horizons of Development
3 Horizons of Development
3 Horizons of Development
Innovation Pipeline
Innovation Drives Earnings Growth
IQ DESIGN LABS
3D Printing�Bringing New ideas to life
LSS CUSTOMER FIRST
The Evolving Customer Relationship
Slide Number 37
Inspired future
Innovating with PolyOne
PolyOne Distribution
DISTRIBUTION
Service is our business
Service is our business
Key Commercial Investments
Growth through Inside Sales
Growth through Multiple Sales Channels
New Resources Fueling the Future
Inspired future
Specialty Engineered Materials
Specialty Engineered Materials
Specialty Engineered Materials
Capitalizing on the global market
STRATEGIC INVESTMENT IN 3 KEY AREAS
Key Commercial Investments
New Resources Fueling the Future
growth Through Service
Innovation Spotlight: Composites
Composites Refresher
Strategic Investment History
COMPOSITES in Transportation
Slide Number 61
Inspired future
Performance Products �& Solutions
Performance Products & Solutions
Performance Products & Solutions
STRATEGIC INVESTMENT IN 3 KEY AREAS
Key Commercial Investments
New Resources Fueling the Future
Growth Through Service
Growth Through Service
Innovation Spotlight: �Flame Retardant�Polymers
FLAME RETARDANT �DRIVERS
Flame Retardant Performance Spectrum
LED Solutions
Inspired future
Color Additives�& Inks
COLOR, ADDITIVES & INKS
Color, Additives & Inks
Capitalizing on the global market
STRATEGIC INVESTMENT IN 3 KEY AREAS
Key Commercial Investments
New Resources Fueling the Future
Growth Through Service
Innovation Spotlight: Additive & Colorant�Technologies
Barrier Technologies
Fiber Colorants
Strategic Investment History
Slide Number 88
Slide Number 89
COLORMATRIX SELECT™
Enabling the Customer
Slide Number 92
Inspired future
M&A Review
Over a decade of successful specialty acquisitions
Invest-to-Grow Strategy
Invest-to-Grow Playbook
Invest-to-Grow Proof of performance
Invest-to-Grow Proof of performance
Invest-to-Grow Driving the future
Invest-to-Grow Driving the future
Strong Pipeline�driven by fragmented Market
Summary
Financial Review
Adjusted EPS Expansion
Strategic cash deployment
Proof of Performance �Expanding Margins & ROIC
Investment in Commercial Resources Driving Results
Sustainable Path to Double-Digit EPS Growth
ROIC drives shareholder return
ROIC drives shareholder return
Conclusion
Investor Presentation - May 2018 Non-GAAP
Investor Presentation - March 2018
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