https://www.avient.com/sites/default/files/resources/Innovation%2520Day%2520-%2520May%25202014.pdf
Patterson
12:00-1:00 PM Lunch
PolyOne Corporation Page 7
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 8
Specialty
54%
PP&S
18%
Distribution
28%
2013 Revenues: $3.8 Billion 2013 Revenues: $3.8 Billion
United
States
67%
Europe
14%
Canada
7%
Asia
6%
Latin
America
6%
$13
$31
$46 $46
$92 $96
$122
$195
$0
$50
$100
$150
$200
2006 2007 2008 2009 2010 2011 2012 2013
End Markets Specialty Operating Income
PolyOne At a Glance
Building &
Construction
13%
Industrial
12%
Transportation
18%
Wire & Cable
9%
Packaging
16%
Consumer
10%
HealthCare
11% Appliance
6%
Electronics &
Electrical
5%
PolyOne Corporation Page 9
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 10
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 11
-150.00%
-50.00%
50.00%
150.00%
250.00%
350.00%
450.00%
550.00%
PolyOne 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.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520–%2520Goldman%2520Sachs%2520Conference%25202015.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
• Substantial EPS growth
from $0.13 to all-time
high of $1.80
• Shift to faster growing,
high margin, less
cyclical end markets
• Key acquisitions propel
current and future
growth, as well as
margin expansion
• Specialty mix expands
to 65% of Operating
Income – strongest mix
of earnings in history
• Accelerating growth
• Deliver consistent
double digit annual
EPS growth
• Maintain >35% vitality
index
• Pursue strategic
acquisitions that
expand specialty
offerings and
geographic breadth
• Invest and grow
current and next
generation talent
PolyOne Corporation Page 5
Appliances
5%
Building &
Construction
12%
Consumer
10%
Electrical &
Electronics
5%
Healthcare
11%
Industrial
14%
Packaging
14%
Transportation
20%
Wire & Cable
9%
Distribution
28%
PP&S
20%
Specialty
52%
United States
69%
Europe
13%
Canada
7% Asia
6%
Latin America
5%
2014 Revenues: $3.8 Billion
End Markets
2014 Revenues: $3.8 Billion
PolyOne
At A Glance
$13
$31
$46 $46
$92 $96
$122
$195
$242
2006 2007 2008 2009 2010 2011 2012 2013 2014
Specialty Operating Income ($M)
PolyOne Corporation Page 6
Old
PolyOne
*Operating Income excludes corporate charges and special items
2%
34% 43%
62%
65%
69%
0%
20%
40%
60%
80%
100%
2005 2008 2010 2013 2014 Q1 2015 2020
%
o
f O
pe
ra
tin
g
In
co
m
e*
JV's Performance Products & Solutions Distribution Specialty
80%+
Specialty OI $5M $46M $87M $195M $242M $60M
Mix Shift Highlights Specialty Transformation
Transformation
2020
Platinum
Vision
Platinum
Vision
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
-100%
0%
100%
200%
300%
400%
500%
600%
Strategy and Execution Drive Results
$0.12
$0.27
$0.21
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
'06 '07 '08 '09 '10 '11 '12 '13 '14
‘06-‘14 Adjusted EPS CAGR = 40%
Adjusted EPS Share Price vs.
https://www.avient.com/sites/default/files/resources/PolyOne%25202013%2520Annual%2520Report.pdf
Organically, we utilized our proprietary innovation
process to develop and launch new specialty and full-service
solutions, including Versaflex™ HC, Excelite™ liquid foaming
solutions, Percept™ Authentication Technologies, and InVisiOSM
Color and Design Services, just to name a few.
Performance Products & Solutions (PP&S) achieved
a new record for return on sales at 7.2 percent and further reduced
its working capital as a percent of sales to 4.3 percent.
This strength was most notably
evidenced by our hiring last year of Brad Richardson as CFO and
Michael Garratt as president of PP&S.
https://www.avient.com/products/thermoplastic-elastomers/versaflex-thermoplastic-elastomers
Soft Foam Ammo for Toy
https://www.avient.com/industries/packaging/industrial-packaging/surface-protection
Soft Foam Ammo for Toy
https://www.avient.com/industries/packaging/beverage-packaging/sports-and-energy
Soft Foam Ammo for Toy
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Investor%2520Day%25205-18-15.pdf
url=http://de.wikipedia.org/wiki/Datei:Bayer-Logo.svg&rct=j&frm=1&q=&esrc=s&sa=U&ei=TfImVb6bAbeKsQTjp4DABA&ved=0CBYQ9QEwAA&sig2=Ci5ha-5qQAzO0chQpoDCLA&usg=AFQjCNHRuaPkX3dETrItqttgMxou7-a1Ow
PolyOne Corporation Page 33
Innovation Pipeline Potential
Global Specialty Engineered Materials
Prototype Frame
Opportunity
Scale-up & Test
Market
Build
Business Case
Commercial
Launch
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
3
6
2
3
4
4
2 2 1
3
3
1
3
2
1
Breakthrough
Platform
Derivative
Addressable Market
($ millions)
$400 $100 $200
PolyOne Corporation Page 34
Megatrends Aligned with Key End Markets
Increasing
Energy
Efficiency
Protecting
the
Environment
Improving
Health and
Wellness
Megatrend End Markets
Globalizing
and
Localizing
Health &
Wellness
Transportation
Packaging
Consumer
Global Specialty Engineered Materials
PolyOne Corporation Page 35
>$150M
Revenue
Potential
Advanced Composites
Healthcare
Key Initiatives
Light-weighting
>$100M
Revenue
Potential
Global Specialty Engineered Materials
PolyOne Corporation Page 36
Platinum Vision
1.1%
8.0%
12.1%
20%+
2006 2011 2014 2020
Platinum
Vision
World Class Operating Margin
Accelerating Growth
Global Specialty Engineered Materials
Innovation Market
Growth
Geographic
Expansion
Collaboration
PolyOne Corporation Page 37
Summary
Accelerating growth is #1 priority
• Collaboration across PolyOne
• Market-driven Innovation
• Commercial and Operational Excellence
Global Specialty Engineered Materials
PolyOne Corporation Page 38
Designed Structures and Solutions
PolyOne Corporation Page 39
Custom
Engineered
Solutions
71%
Packaging
Solutions
29%
Appliances
2%Building &
Construction
8%
Consumer
5%
Healthcare
6%
Industrial
23%
Packaging
27%
Transportation
30%
2014 Revenue by
Industry Segment
2014 Revenues:
$0.6 Billion
At a Glance
Designed Structures and Solutions
PolyOne Corporation Page 40
Early Progress
1.4%
5.6%
7.3%
2012 2013 2014
Operating Margin
$16
$33
$45
2012 2013 2014
Operating Income ($M)
• Cultural shift from
volume to value
• Emphasis on
commercial excellence
• Mix shift to profitable
portfolio of offerings
• “Rightsizing” the
operational footprint
• Deploy Lean Six Sigma
Designed Structures and Solutions
PolyOne Corporation Page 41
A Lot of Work Remains with Tremendous Upside Potential
Guided by our Four Pillar Strategy
Specialization Globalization
Operational
Excellence
Commercial
Excellence
Designed Structures and Solutions
Focused on improving:
• Quality
• On-time Delivery
• Operational Efficiency
PolyOne Corporation Page 42
Innovating with Cross-Business Unit Technologies
Designed Structures and Solutions
Specialty Engineered Materials
Color and Additives
GLS
ColorMatrix
Geon
• Flame retardant solutions
• Flexible sound abatement materials
• Energy dissipation
• Replacement of leaded glass
• Foaming technologies
• Improved renewable packaging
• Next generation barrier packaging
• Glass replacement in packaging
PolyOne Corporation Page 43
Who We Are Growing With
Designed Structures and Solutions
http://www.google.com/url?
https://www.avient.com/sites/default/files/2024-08/Avient-2023-Sustainability-Report_5.pdf
HIGHLIGHTS from 2023:
Key Markets
Key Customer Challenges
• Improve fuel economy
• Reduce energy consumption
• Reduce carbon footprint
• Lessening environmental impact
Avient Solutions & Services
• Specialty solutions designed to replace traditional
materials (e.g. metal, wood) at lower weight
• Alternative solutions to reduce emittance of
volatile organic compounds
• Lightweighting design and solutions to reduce
material usage
• Avient Design Ser vices to reduce weight or
energy consumption
REDUCE
Consumer Transportation Building &
Construction
20%
LESS MATERIAL
Lightweight Dashboards
Hydrocerol™ Chemical
Foaming Agents
LEARN MORE
REDUCES
VOCs
SmartBatch™ FX for
Body & Trim Paint
Replacement
LEARN MORE
59%
Air Cargo Nets
Bio-Based Dyneema® Fiber
LEARN MORE
SUSTAINABLE DESIGN
Design for Lightweighting
Avient Design Services
LEARN MORE
LESS
WEIGHT
60%
EV Connectors
Edgetek™ PKE Non-Halogen Flame Retardant
Formulations
LEARN MORE40%
LED Lighting Components
Therma-Tech™ Thermally
Conductive Formulations
LEARN MORE
LESS CO
2
THAN NYLON
LIGHTER THAN
ALUMINUM LEARN MORE
Avient Sustainability
HOME | Contents | Message from the CEO | About Us | People | Products | Planet | Per formance | Metrics | Index Sustainability Report | 2023 43Sustainability Report | 2023 43
https://www.avient.com/products/polymer-additives/foaming-agents/hydrocerol-chemical-foaming-agents
https://www.avient.com/products/polymer-colorants/color-additive-combination-masterbatches/smartbatch-fx-paint-replacement-0
https://www.dyneema.com/sustainability/bio-based-dyneema-fiber
https://www.avient.com/resource-center/services/avient-design
https://www.avient.com/products/engineered-polymer-formulations/chemical-corrosion-resistant-formulations/edgetek-pke-polyketone-formulations
https://www.avient.com/products/engineered-polymer-formulations/conductive-signal-radiation-shielding-formulations/therma-tech-thermally-conductive-formulations
https://www.avient.com/company/sustainability/sustainable-solutions-portfolio
PRESERVE
Avient’s portfolio of PRESERVE sustainable solutions are designed to preser ve natural resources like water, protect human health and
safety, and enable sustainable infrastructure.
https://www.avient.com/sites/default/files/2024-08/Avient 2023 Sustainability Report_6.pdf
HIGHLIGHTS from 2023:
Key Markets
Key Customer Challenges
• Improve fuel economy
• Reduce energy consumption
• Reduce carbon footprint
• Lessening environmental impact
Avient Solutions & Services
• Specialty solutions designed to replace traditional
materials (e.g. metal, wood) at lower weight
• Alternative solutions to reduce emittance of
volatile organic compounds
• Lightweighting design and solutions to reduce
material usage
• Avient Design Ser vices to reduce weight or
energy consumption
REDUCE
Consumer Transportation Building &
Construction
20%
LESS MATERIAL
Lightweight Dashboards
Hydrocerol™ Chemical
Foaming Agents
LEARN MORE
REDUCES
VOCs
SmartBatch™ FX for
Body & Trim Paint
Replacement
LEARN MORE
59%
Air Cargo Nets
Bio-Based Dyneema® Fiber
LEARN MORE
SUSTAINABLE DESIGN
Design for Lightweighting
Avient Design Services
LEARN MORE
LESS
WEIGHT
60%
EV Connectors
Edgetek™ PKE Non-Halogen Flame Retardant
Formulations
LEARN MORE40%
LED Lighting Components
Therma-Tech™ Thermally
Conductive Formulations
LEARN MORE
LESS CO
2
THAN NYLON
LIGHTER THAN
ALUMINUM LEARN MORE
Avient Sustainability
HOME | Contents | Message from the CEO | About Us | People | Products | Planet | Per formance | Metrics | Index Sustainability Report | 2023 43Sustainability Report | 2023 43
https://www.avient.com/products/polymer-additives/foaming-agents/hydrocerol-chemical-foaming-agents
https://www.avient.com/products/polymer-colorants/color-additive-combination-masterbatches/smartbatch-fx-paint-replacement-0
https://www.dyneema.com/sustainability/bio-based-dyneema-fiber
https://www.avient.com/resource-center/services/avient-design
https://www.avient.com/products/engineered-polymer-formulations/chemical-corrosion-resistant-formulations/edgetek-pke-polyketone-formulations
https://www.avient.com/products/engineered-polymer-formulations/conductive-signal-radiation-shielding-formulations/therma-tech-thermally-conductive-formulations
https://www.avient.com/company/sustainability/sustainable-solutions-portfolio
PRESERVE
Avient’s portfolio of PRESERVE sustainable solutions are designed to preser ve natural resources like water, protect human health and
safety, and enable sustainable infrastructure.
https://www.avient.com/sites/default/files/resources/PolyOne%25202016%2520Annual%2520Report%2520Web.pdf
These included headwinds from
hydrocarbon based raw material deflation that reduced revenue by nearly $150
million and compressed margins, primarily within our PolyOne Distribution (POD)
and Performance Products and Solutions (PP&S) segments.
These associates led to an almost immediate impact in POD
and PP&S, where sales cycles are often the shortest within the
company.
Our additive concentrates encompass a wide variety of performance
and process enhancing characteristics and are commonly categorized by the function that they perform, including
UV light stabilization and blocking, antimicrobial, anti-static, blowing or foaming, antioxidant, lubricant, oxygen and
visible light blocking and productivity enhancement.