https://www.avient.com/sites/default/files/2025-01/AVNT Dec 2022 Earnings Presentation Updated.pdf
We create specialized and sustainable material solutions that transform customer challenges into opportunities, bringing new products to life for a better world.
Our customers value the breadth of our solutions as we can tap into a broad array of raw materials to solve their specific needs.
Our formulation expertise supports material science decisions, while our processing expertise guides customers to use the materials properly.
https://www.avient.com/sites/default/files/2023-01/AVNT Dec 2022 Earnings Presentation.pdf
We create specialized and sustainable material solutions that transform customer challenges into opportunities, bringing new products to life for a better world.
Our customers value the breadth of our solutions as we can tap into a broad array of raw materials to solve their specific needs.
Our formulation expertise supports material science decisions, while our processing expertise guides customers to use the materials properly.
https://www.avient.com/sites/default/files/2023-05/AVNT Q1 2023 Earnings Presentation.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.
Pro Forma Financial Information The Company acquired Avient Protective Materials (“Dyneema”) on September 1, 2022 (the “Acquisition Date”) and sold the Distribution segment on November 1, 2022.
GUIDANCE (TOTAL COMPANY) 7 14.8% 15.8% Guidance Actual Adjusted EBITDA Margin % Better-than-expected margins driven by: • Resilient demand for composites and sustainable solutions which improved mix of higher margin applications • Deceleration of raw material inflation • Cost reduction activities Q1 EBITDA BRIDGE (TOTAL COMPANY) 8 $ millions CAI: Price / Mix 19) Inflation (4) SEM: Price / Mix 6) Inflation (4) Net Price Benefit 17) Wage and Energy Inflation (13) Cost Reductions 8) FX (6) Q1 2023 Actual $134) Adjusted EBITDA Q1 2022 Pro Forma $ 176) Demand (48) • Weak demand conditions in-line with previous expectations • Pricing continues to cover inflation of raw materials, wages and energy U.S. & Canada 40% EMEA 38% Asia 17% Latin America 5% Q1 2023 SEGMENT, END MARKET AND GEOGRAPHY GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 18% Packaging 23% Healthcare 7% Industrial 16% Building and Construction 10% Defense 6%Telecommunications 4% Energy 5% END MARKET REVENUE (1) Total company sales and adjusted EBITDA of $846M and $134M, respectively, include intercompany sales eliminations and corporate costs $537M $91M $310M $64M Sales EBITDA Specialty Engineered Materials Color Additives and Inks $134M$846M (1) 9 Transportation 11% Q1 2023 SALES BY REGION Yo Y C H A N G E ( E X C L .
https://www.avient.com/sites/default/files/2020-11/glasforms-improved-adhesion-product-bulletin.pdf
Glasforms™ Improved Adhesion Formulations Glasforms™ thermoset pultruded composites featuring improved adhesion resin formulations provide enhanced adhesive properties that enable exceptional bonding performance for end products.
Processing conditions can cause material properties to shift from the values stated in the information.
https://www.avient.com/sites/default/files/resources/Investor%2520Presentation%2520Mar19.pdf
Investor Day POLYONE I N V E S T O R P R E S E N T A T I O N M A R C H 2 0 1 9 FORWARD LOOKING STATEMENTS PolyOne Corporation 2 • • • • • • • • • • USE OF NON-GAAP MEASURES PolyOne Corporation 3 • • • 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 2 0 1 8 R E V E N U E | $ 3 . 5 B I L L I O N Transportation 17% Industrial 15% Consumer 12% Packaging 11% Wire & Cable 10% Appliance 5% United States 57% Europe 16% Asia 10% Latin America 10% Canada 7% Distribution 35% Performance Products & Solutions 19% Specialty Engineered Materials 17% Color Additives & Inks 29% Segment End Market Geography Building & Construction 11% Electrical & Electronics 6% Healthcare 13% 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 7 9 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.06 $2.21 2006 2018 ROIC** 5.0% 14.1% Operating Income % of Sales Color, Additives & Inks 1.7% 15.1% Specialty Engineered Materials 1.1% 11.2% Performance Products & Solutions 4.3% 10.0% Distribution 2.6% 5.6% A D J U S T E D E P S E X P A N S I O N 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 strategic acquisitions Innovate 600K-1M commercial resources 5-7% Double acquired margins Lean Six Sigma commercial excellence 531 710 130 164 504 663 2014 2018 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 DDI N G C U S T O M E R T O U C H P O I N T S 4 24 2014 2018 Inside sellers $11M $109M 2014 2018 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 Vitality Index 12% 35% 2006 2018 $20 $56 2006 2018 Transformational Adjacent Core 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 Market Technical I N N O V A T I O N I N N O V A T I O N P I P E L I N E PolyOne Corporation 15 PrototypeFrame Opportunity Scale-up & Test Market Build Business Case Commercial Launch (since 2017) Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 6 11 4 4 3 2 28 0 5 10 7 2 5 5 Breakthrough Platform Derivative F L A M E R E T A R D A N T P O L Y M E R S A D V A N C E D C O M P O S I T E S B A R R I E R M A T E R I A L S C O L O R A N T T E C H N O L O G I E S T H E R M O P L A S T I C E L A S T O M E R S 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 16 C O M P O S I T E S R E F R E S H E R PolyOne Corporation 17 Fiber Polymer Composite 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 Thermoplastic Composites Long Fiber Reinforced Thermoplastics Continuous Fiber Thermosets Long Fiber Reinforced Thermoplastics Continuous Fiber Thermosets 2012 2015 20162009 2011 2018 PolyOne Corporation 2019 18 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 19 W A T E R C R A F TR A I L H E A V Y T R U C K F I B E R - L I N E H I G H L I G H T S PolyOne Corporation 20 $100M • • • • • • • • • • • • • • • • • • • Customer Value Fiber-Line Fiber Processing Capabilities Polymer Formulation Capabilities 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 21 • • • • • • • • • F I B E R O P T I C A L G R O W T H D R I V E R S PolyOne Corporation 22 5G Networks 10x 8x 5G vs. 4G PolyOne Corporation 23 Safety Technology Geography Service FinancialPeople 8-10% with ability to double I N V E S T - T O - G R O W M & A S T R A T E G Y PolyOne Corporation 24 Capture sourcing synergies Cross-sell & blend technology 8-10% operating margins I N V E S T - T O - G R O W M & A P L A Y B O O K Protect customers Retain employees Implement LSS to drive efficiency improvements Innovate with combined portfolio Safety First!
T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y SERVICE: T H E T I M E L E S S D I F F E R E N T I A T O R PolyOne Corporation 31 T A L E N T D E V E L O P M E N T PolyOne Corporation 32 Leadership Program Participants 2012 2013 2014 2015 47 0 86 2016 2018 125 169 315 Campus Hires 2008 2011 2014 2017 0 25 90 47 PolyOne LSS Blackbelts 2008 2011 2014 2018 0 67 220 147 2018 141 A U N I Q U E C U S T O M E R E X P E R I E N C E Industrial Design IQ DESIGN LABS PolyOne Corporation 33 Material & Color Expertise Manufacturing Expertise 3 14 2014 2018 Industrial designers $0 $10M 2014 2018 $4M $80M 2014 2018 Opportunity funnel New business revenue LSS CUSTOMER FIRST PolyOne Corporation 34 Customer Projects 2014 2018 2 104 3 D P R I N T I N G B R I N G I N G N E W I D E A S T O L I F E PolyOne Corporation 35 PolyOne Corporation 36 M O N T H M O N T H M O N T H M O N T H M O N T H M O N T H 99.9% up to 24 weeks 6 hours C O L O R M A T R I X S E L E C T ™ I N N O V A T I N G W I T H P O L Y O N E PolyOne Corporation 37 SEGMENT HIGHLIGHTS C O L O R , A D D I T I V E S & I N K S EN D M A R K ET S & S O L U T I O N S PolyOne Corporation 38 Solid Colorants Performance Additives Screen Printing Inks Liquid Colorants Packaging 28% Industrial 14% Textiles 13% Wire & Cable 11% Building & Construction 10% Transportation 8% Consumer 8% Healthcare 5% Appliances 2% Electrical & Electronic 1% Operating Income & MarginRevenue by Region C O L O R , A D D I T I V E S & I N K S 2 0 1 8 R E V E N U E | O V ER $ 1 B I L L I O N $4 $25 $104 $159 0.9% 5.5% 12.2% 15.1% 2005 2009 2013 2018 PolyOne Corporation 39 Europe 35% United States 45% Asia 14% Canada 1% Mexico 3% South America 2% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S EN D M A R K ET S & S O L U T I O N S PolyOne Corporation 40 Engineered Formulations Advanced Composites Thermoplastic Elastomers Consumer 21% Transportation 18% Wire & Cable 13%Healthcare 9% Industrial 9% Packaging 7% Appliance 3% Building & Construction 4% Electrical & Electronics 16% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S Revenue by Region Operating Income & Margin 2 0 1 8 R EV EN U E | $ 6 4 6 M I L L I O N PolyOne Corporation 41 $21 $57 $72 0.1% 5.1% 9.3% 11.2% 2005 2009 2013 2018 Europe 28% United States 46% Asia 24% Canada 2% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S EN D M A R K ET S & S O L U T I O N S PolyOne Corporation 42 Specialty Vinyl Solutions Healthcare Formulations Smart Device Materials Flame Retardant Polymers Building & Construction 28% Industrial 18% Transportation 17% Wire & Cable 16%Consumer 7% Appliance 6% Packaging 4% Electrical & Electronics 4% Asia 2% United States 78% Mexico 5% Canada 15% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S Operating Income & MarginRevenue by Region 2 0 1 8 R EV EN U E | $ 7 3 6 M I L L I O N $40 $24 $56 $74 4.6% 3.6% 7.2% 10.0% 2005 2009 2013 2018 PolyOne Corporation 43 D I S T R I B U T I O N EN D M A R K ET S & S U P P L I ER S PolyOne Corporation 44 Healthcare 27% Transportation 22% Industrial 18% Consumer 12% Appliance 6% Electrical & Electronics 5% Building & Construction 5% Packaging 3% Wire & Cable 2% $20 $25 $63 $71 2.9% 4.0% 5.9% 5.6% 2005 2009 2013 2018 Operating Income & Margin2018 Revenue | $1.3 Billion http://www.polyone.com/Pages/VariationRoot.aspx O V E R V I E W O F R A W M A T E R I A L P U R C H A S E S PolyOne Corporation 45 T A R G E T E N D M A R K E T S & A P P L I C A T I O N E X A M P L E S PolyOne Corporation 46 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 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 Target End Markets… Consumer Thermally Conductive Components Polymer Colorants Elastomeric Grips and Handles Structural Composite Components 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 Luxury Packaging GravitechTM Density Modified Polymers Optimize Color Usage OnColorTM Super Concentrates Combat Bacteria Formation WithStandTM Antimicrobial Technology Medical Device Housings Chemically Resistant Engineered Polymers Color & Design Services Outdoor Applications Fiber Colorants 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.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Jefferies%2520Conference%2520-%25208%253A7%253A2018.pdf
Investor Day POLYONE I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 1 8 FORWARD LOOKING STATEMENTS PolyOne Corporation 2 • • • • • • • • • USE OF NON-GAAP MEASURES PolyOne Corporation 3 • • • 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 1.3 1.1 1.1 0.85 0.65 0.57 0.54 0.97 0.84 0.74 0.74 0.69 0.57 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD Injuries per 100 Workers Spartech Acquisition PolyOne Corporation 6 P O L Y O N E 2 0 1 7 R E V E N U E | $ 3 . 2 B I L L I O N Transportation 18% Industrial 16% Consumer 12% Packaging 11% Healthcare 11% Wire & Cable 9% Appliance 5% United States 59% Europe 14% Asia 10% Latin America 9% Canada 8% PolyOne Distribution 34% Performance Products & Solutions 21% Specialty Engineered Materials 19% Color Additives & Inks 26% Segment End Market Geography Building & Construction 12% Electrical & Electronics 6% 2009 2010 2011 2012 2013 2014 2015 2016* 2017* 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 7 8 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.06 $2.21 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% A D J U S T E D E P S E X P A N S I O N 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 strategic acquisitions Innovate 600K-1M commercial resources 6-8% Double acquired margins Lean Six Sigma commercial excellence 531 689130 157 504 633 2014 Q2 2018 R&D / Technical Marketing Sales PolyOne Corporation 9 Increased commercial headcount + 28% + 18% + 23% Generating opportunities 35% 25% 1,000 $1.0B Enhancing efficiency 8% 20% 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 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 80% increase in leads (from 6,000 to 11,000) 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 21 2014 2017 Inside sellers $11M $88M 2014 2017 Inside sales/digital revenue N E W R E S O U R C E S F U E L I N G T H E F U T U R E PolyOne Corporation 12 P O L Y O N E S A L E S F U N N E L +34% 2014 $3.0 billion 2017 $4.0 billion 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 13 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 14 Customization 55% M&A 30% Innovation Pipeline 15% Innovation comes from Research & Development Spend Vitality Index 12% 38% 2006 2017 $20 $52 2006 2017 Transformational Adjacent Core 3 H O R I Z O N S O F D E V E L O P M E N T PolyOne Corporation 15 Market Technical I N N O V A T I O N I N N O V A T I O N P I P E L I N E PolyOne Corporation 16 PrototypeFrame Opportunity Scale-up & Test Market Build Business Case Commercial Launch (since 2015) Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 8 5 6 2 1 15 4 10 5 11 4 5 7 Breakthrough Platform Derivative F L A M E R E T A R D A N T P O L Y M E R S A D V A N C E D C O M P O S I T E S B A R R I E R M A T E R I A L S C O L O R A N T T E C H N O L O G I E S T H E R M O P L A S T I C E L A S T O M E R S 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 17 C O M P O S I T E S R E F R E S H E R PolyOne Corporation 18 Fiber Polymer Composite 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 Thermoplastic Composites Long Fiber Reinforced Thermoplastics Continuous Fiber Thermosets Long Fiber Reinforced Thermoplastics Continuous Fiber Thermosets 2012 2015 20162009 2011 2018 PolyOne Corporation 19 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 20 W A T E R C R A F TR A I L H E A V Y T R U C K PolyOne Corporation 21 Safety Technology Geography Service FinancialPeople 8-10% with ability to double I N V E S T - T O - G R O W M & A S T R A T E G Y PolyOne Corporation 22 Capture sourcing synergies Cross-sell & blend technology 8-10% operating margins I N V E S T - T O - G R O W M & A P L A Y B O O K Protect customers Retain employees Implement LSS to drive efficiency improvements Innovate with combined portfolio Safety First!
T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y SERVICE: T H E T I M E L E S S D I F F E R E N T I A T O R PolyOne Corporation 29 T A L E N T D E V E L O P M E N T PolyOne Corporation 30 Leadership Program Participants 2012 2013 2014 2015 47 0 86 2016 2018 125 169 315 Campus Hires 2008 2011 2014 2017 0 25 90 47 PolyOne LSS Blackbelts 2008 2011 2014 2018 0 67 220 147 2018 141 A U N I Q U E C U S T O M E R E X P E R I E N C E Industrial Design IQ DESIGN LABS PolyOne Corporation 31 Material & Color Expertise Manufacturing Expertise 3 14 2014 2017 Industrial designers $0 $7M 2014 2017 $4M $40M 2014 2017 Opportunity funnel New business revenue LSS CUSTOMER FIRST PolyOne Corporation 32 Customer Projects 2014 2017 2 85 3 D P R I N T I N G B R I N G I N G N E W I D E A S T O L I F E PolyOne Corporation 33 PolyOne Corporation 34 M O N T H M O N T H M O N T H M O N T H M O N T H M O N T H 99.9% up to 24 weeks 6 hours C O L O R M A T R I X S E L E C T ™ I N N O V A T I N G W I T H P O L Y O N E PolyOne Corporation 35 SEGMENT HIGHLIGHTS C O L O R , A D D I T I V E S & I N K S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 36 Solid Colorants Performance Additives Screen Printing Inks Liquid Colorants Packaging 27% Industrial 14% Textiles 12% Building & Construction 10% Wire & Cable 10%Transportation 8% Consumer 7% Healthcare 6% Electrical & Electronics 3% Appliance 3% Operating Income & MarginRevenue by Region C O L O R , A D D I T I V E S & I N K S 2 0 1 7 R E V E N U E | $ 8 9 3 M I L L I O N $4 $25 $104 $139 0.9% 5.5% 12.2% 15.5% 2005 2009 2013 2017 PolyOne Corporation 37 Europe 32% United States 46% Asia 15% Canada 1% Mexico 4% Brazil 2% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 38 Engineered Formulations Advanced Composites Thermoplastic Elastomers Consumer 20% Transportation 19% Wire & Cable 13% Healthcare 11% Industrial 8% Packaging 7% Appliance 4% Building & Construction 3% Electrical & Electronics 15% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S Revenue by Region Operating Income & Margin 2 0 1 7 R E V E N U E | $ 6 2 4 M I L L I O N PolyOne Corporation 39 $21 $57 $76 0.1% 5.1% 9.3% 2005 2009 2013 2017 Europe 28% United States 48% Asia 22% Canada 2% 12.1% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 40 Specialty Vinyl Solutions Healthcare Formulations Smart Device Materials Flame Retardant Polymers Building & Construction 30% Industrial 18% Transportation 16% Wire & Cable 15% Appliance 7% Packaging 5% Consumer 5% Electrical & Electronics 3% Healthcare 1% Asia 2% United States 77% Mexico 5% Canada 16% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S Operating Income & MarginRevenue by Region 2 0 1 7 R E V E N U E | $ 7 2 1 M I L L I O N $40 $33 $56 $77 4.6% 3.6% 7.2% 10.7% 2005 2009 2013 2017 PolyOne Corporation 41 $886 $668 $773 $721Sales D I S T R I B U T I O N E N D M A R K E T S & S U P P L I E R S PolyOne Corporation 42 Transportation 23% Healthcare 22% Industrial 18% Consumer 15% Appliance 7% Electrical & Electronics 6% Building & Construction 4% Packaging 3% Wire & Cable 2% $20 $25 $63 $73 2.9% 4.0% 5.9% 6.3% 2005 2009 2013 2017 Operating Income & Margin2017 Revenue | $1.2 Billion http://www.polyone.com/Pages/VariationRoot.aspx T A R G E T E N D M A R K E T S & A P P L I C A T I O N E X A M P L E S PolyOne Corporation 43 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 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 Target End Markets… Consumer Thermally Conductive Components Polymer Colorants Elastomeric Grips and Handles Structural Composite Components 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 Luxury Packaging GravitechTM Density Modified Polymers Optimize Color Usage OnColorTM Super Concentrates Combat Bacteria Formation WithStandTM Antimicrobial Technology Medical Device Housings Chemically Resistant Engineered Polymers Color & Design Services Outdoor Applications Fiber Colorants Smart Home Devices ResilienceTM Vinyl Solutions � � �������� � � ��� � �� � ����� ����� ��� ��� ������ �� ��� ��� �� ��� ��� !"
https://www.avient.com/sites/default/files/AVNT Q1 2023 Earnings Press Release.pdf
This was partially driven by composites and sustainable solutions which are proving to be resilient in a challenging macroeconomic environment and improving our mix of higher margin applications.” 2 Mr.
Patterson added, “Last year, we substantially expanded our composite offerings with the acquisition of Dyneema®, the world’s strongest fiber™, and I’m pleased to report integration is progressing exceptionally well.
Demand for defense, energy and telecom composite applications are helping to offset weakness in other markets around the world.”
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Seaport%2520Global%2520Transports%2520%2526%2520Industrials%2520Conference.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.
In addition, operating income before special items and adjusted EPS are components of various PolyOne annual and long-term employee incentive plans. A reconciliation of each non-GAAP financial measure with the most directly comparable GAAP financial measure is attached to this presentation which is posted on our website at www.polyone.com. 4 POLYONE CORPORATION What We Do Value Formulation Expertise Inputs Base resins Additives Modifiers Pigments Expertise in Polymer Materials, Services and Solutions OEMs Brand Owners Processers Assemblers Driving customer value with specialty products & services Service InVisiOSM Color Services IQ Design Labs LSS Customer First POLYONE CORPORATION 5 2016 Revenue ($3.3 Billion) by Segment At a Glance United States 65% Europe 12% Canada 8% Asia 8% Latin America 7% $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.13 2009 2010 2011 2012 2013 2014 2015 2016 2016 Revenue by Geography 2016 Revenue by End Market Appliance 5% Building & Construction 11% Consumer 11% Electrical & Electronics 5% Healthcare 11% Industrial 15% Packaging 12% Textiles 2% Transportation 19% Wire & Cable 9% Adjusted Earnings Per Share Performance Products & Solutions 19% PolyOne Distribution 31% Designed Structures & Solutions 11% Specialty Engineered Materials 16% Color Additives and Inks 23% 6 POLYONE CORPORATION Returning Cash to Shareholders $0.16 $0.20 $0.24 $0.32 $0.40 $0.48 $0.54 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 2011 2012 2013 2014 2015 2016 2017 Annual Dividend* Since 2011, we have returned nearly $850 million to shareholders $150 million returned through dividends $697 million returned through share repurchases $697M $0 $150 $300 $450 $600 $750 2011 2012 2013 2014 2015 2016 Cumulative Share Repurchases (in millions) *Initiated in 2011 7 POLYONE CORPORATION 2% 43% 79% 0% 20% 40% 60% 80% 100% 2005 2010 2016 % o f O pe ra tin g In co m e* *Operating Income excludes corporate charges and special items Specialty OI $5M $87M $273M Mix Shift Highlights Specialty Transformation Specialty = ROS > 10% JV’s Performance Products & Solutions Specialty Distribution 8 POLYONE CORPORATION 2006 2016 2020 “Where we were” “Where we are” Platinum Vision Operating Income % of Sales Color, Additives & Inks 1.7% 16.0% 20%+ Specialty Engineered Materials 1.1% 14.3% 20%+ Performance Products & Solutions 5.5% 11.1% 12 – 14% Distribution 2.6% 6.4% 6.5 – 7.5% Designed Structures & Solutions N/A -0.9% 8 – 10% ROIC* 5.0% 12.9% 15% Proof of Performance & 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 Consistently Deliver Double Digit Annual EPS Growth POLYONE CORPORATION 9 2,883 2,538 2006 2016 Volume (lbs in millions) -12% $103 $200 2006 2016 Commercial, R&D and Marketing Spending ($M) +95% $88 $317 2006 2016 Adjusted Operating Profit ($M) +263% Ours is Not a Cost Cutting Story 10 POLYONE CORPORATION Innovation Drives Earnings Growth *Specialty Platform revenue from products introduced in last five years $20 $54 2006 2016 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 33% 2006 2016 CAI & SEM Gross Margin 12% 42% 2006 2016 Target ≥ 35% Innovation Pipeline Potential 11 POLYONE CORPORATION Primary Industries Served 2016 Revenue: $3.3 Billion Electrical & Electronic 5% Building & Construction 11% Appliance 5% Industrial 15% Wire & Cable 9% Healthcare 11% Consumer 11% Packaging 12% Transportation 19% Focus End Markets 12 POLYONE CORPORATION Therma-Tech™ & Sheet GEON™ Vinyl Polymer Colorants Therma-Tech™ TPE’s & Film TPE + OnForce™ Gravi-Tech™ Page 12 Film Target End Markets… Healthcare 13 POLYONE CORPORATION Sound & Vibration Management Fuel Handling Systems Interior & Exterior Trim Structural Braces & Brackets Interior Structural Components Lighting Air management Electronics & Cameras Fluid Handling Target End Markets… Automotive Underhood Components Roof Systems 14 POLYONE CORPORATION PreservaPak™ OnColor™ Smart Batch™ VersaFlex™ TPE Cap Liner ColorMatrix™ Amosorb™ Oxygen Scavenger ColorMatrix™ Ultimate™ UV Light Barrier OnCap™ Laser Marking Additives Target End Markets… Packaging 15 POLYONE CORPORATION Source: Outdoor Industry Association TPE Vibration Dampening (SEM/GLS) TPE + OnForce (SEM) OnForce (SEM) Advanced Composites (SEM) TPE Vibration Dampening (SEM/GLS) Thermoplastic Elastomers (SEM) Advanced Composites (SEM) Polymer Colorants (CAI) Sheet (DSS) TPE & Film (SEM + DSS) Advanced Composites (SEM) Polymer Colorants (CAI) Thermatech (SEM) Thermoplastic Elastomers (SEM) TPE + OnForce (SEM) OnForce (SEM) Target End Markets… Consumer 16 POLYONE CORPORATION Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return 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 1.2 million shares in Q4 2016 Repurchased 18.8 million shares since early 2013 8.5 million shares are available for repurchase under the current authorization Increased annual dividend by 12.5% to $0.54 per share, representing the sixth consecutive year of dividend growth POLYONE CORPORATION 17 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
Segment Highlights At a Glance: Color, Additives & Inks At a Glance: Specialty Engineered Materials At a Glance: Designed Structures & Solutions At a Glance: Performance Products & Solutions At a Glance: Distribution Application Examples Luxury Packaging�with Gravitech Density Modified Polymers Optimize Color Usage�with OnColor Super Concentrates Combat Bacteria Formation�with WithStand Antimicrobial Technology Medical Device Housings�with Chemically Resistant Engineered Polymers Color & Design Services Outdoor Applications Fiber Colorants�Solutions for clothing, apparel, footwear, automotive & sporting goods High-Barrier Packaging Containers Investor Presentation - January 2017 r14 Investor Presentation - January 2017
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Investor Day POLYONE I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 1 9 FORWARD LOOKING STATEMENTS PolyOne Corporation 2 • • • • • • • • • • USE OF NON-GAAP MEASURES PolyOne Corporation 3 • • • 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 2 0 1 8 R E V E N U E | $ 3 . 5 B I L L I O N Transportation 17% Industrial 15% Consumer 12% Packaging 11% Wire & Cable 10% Appliance 5% United States 57% Europe 16% Asia 10% Latin America 10% Canada 7% Distribution 35% Performance Products & Solutions 19% Specialty Engineered Materials 17% Color Additives & Inks 29% Segment End Market Geography Building & Construction 11% Electrical & Electronics 6% Healthcare 13% 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 7 9 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.06 $2.21 2006 2018 ROIC** 5.0% 14.1% Operating Income % of Sales Color, Additives & Inks 1.7% 15.1% Specialty Engineered Materials 1.1% 11.2% Performance Products & Solutions 4.3% 10.0% Distribution 2.6% 5.6% A D J U S T E D E P S E X P A N S I O N 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 strategic acquisitions Innovate 600K-1M commercial resources 5-7% Double acquired margins Lean Six Sigma commercial excellence 531 710 130 164 504 663 2014 2018 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 DDI N G C U S T O M E R T O U C H P O I N T S 4 24 2014 2018 Inside sellers $11M $109M 2014 2018 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 Vitality Index 12% 35% 2006 2018 $20 $56 2006 2018 Transformational Adjacent Core 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 Market Technical I N N O V A T I O N I N N O V A T I O N P I P E L I N E PolyOne Corporation 15 PrototypeFrame Opportunity Scale-up & Test Market Build Business Case Commercial Launch (since 2017) Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 6 11 4 4 3 2 28 0 5 10 7 2 5 5 Breakthrough Platform Derivative F L A M E R E T A R D A N T P O L Y M E R S A D V A N C E D C O M P O S I T E S B A R R I E R M A T E R I A L S C O L O R A N T T E C H N O L O G I E S T H E R M O P L A S T I C E L A S T O M E R S 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 16 C O M P O S I T E S R E F R E S H E R PolyOne Corporation 17 Fiber Polymer Composite 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 Thermoplastic Composites Long Fiber Reinforced Thermoplastics Continuous Fiber Thermosets Long Fiber Reinforced Thermoplastics Continuous Fiber Thermosets 2012 2015 20162009 2011 2018 PolyOne Corporation 2019 18 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 19 W A T E R C R A F TR A I L H E A V Y T R U C K F I B E R - L I N E H I G H L I G H T S PolyOne Corporation 20 $100M • • • • • • • • • • • • • • • • • • • Customer Value Fiber-Line Fiber Processing Capabilities Polymer Formulation Capabilities 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 21 • • • • • • • • • F I B E R O P T I C A L G R O W T H D R I V E R S PolyOne Corporation 22 5G Networks 10x 8x 5G vs. 4G PolyOne Corporation 23 Safety Technology Geography Service FinancialPeople 8-10% with ability to double I N V E S T - T O - G R O W M & A S T R A T E G Y PolyOne Corporation 24 Capture sourcing synergies Cross-sell & blend technology 8-10% operating margins I N V E S T - T O - G R O W M & A P L A Y B O O K Protect customers Retain employees Implement LSS to drive efficiency improvements Innovate with combined portfolio Safety First!
T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y SERVICE: T H E T I M E L E S S D I F F E R E N T I A T O R PolyOne Corporation 31 T A L E N T D E V E L O P M E N T PolyOne Corporation 32 Leadership Program Participants 2012 2013 2014 2015 47 0 86 2016 2018 125 169 315 Campus Hires 2008 2011 2014 2017 0 25 90 47 PolyOne LSS Blackbelts 2008 2011 2014 2018 0 67 220 147 2018 141 A U N I Q U E C U S T O M E R E X P E R I E N C E Industrial Design IQ DESIGN LABS PolyOne Corporation 33 Material & Color Expertise Manufacturing Expertise 3 14 2014 2018 Industrial designers $0 $10M 2014 2018 $4M $80M 2014 2018 Opportunity funnel New business revenue LSS CUSTOMER FIRST PolyOne Corporation 34 Customer Projects 2014 2018 2 104 3 D P R I N T I N G B R I N G I N G N E W I D E A S T O L I F E PolyOne Corporation 35 PolyOne Corporation 36 M O N T H M O N T H M O N T H M O N T H M O N T H M O N T H 99.9% up to 24 weeks 6 hours C O L O R M A T R I X S E L E C T ™ I N N O V A T I N G W I T H P O L Y O N E PolyOne Corporation 37 SEGMENT HIGHLIGHTS C O L O R , A D D I T I V E S & I N K S EN D M A R K ET S & S O L U T I O N S PolyOne Corporation 38 Solid Colorants Performance Additives Screen Printing Inks Liquid Colorants Packaging 28% Industrial 14% Textiles 13% Wire & Cable 11% Building & Construction 10% Transportation 8% Consumer 8% Healthcare 5% Appliances 2% Electrical & Electronic 1% Operating Income & MarginRevenue by Region C O L O R , A D D I T I V E S & I N K S 2 0 1 8 R E V E N U E | O V ER $ 1 B I L L I O N $4 $25 $104 $159 0.9% 5.5% 12.2% 15.1% 2005 2009 2013 2018 PolyOne Corporation 39 Europe 35% United States 45% Asia 14% Canada 1% Mexico 3% South America 2% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S EN D M A R K ET S & S O L U T I O N S PolyOne Corporation 40 Engineered Formulations Advanced Composites Thermoplastic Elastomers Consumer 21% Transportation 18% Wire & Cable 13%Healthcare 9% Industrial 9% Packaging 7% Appliance 3% Building & Construction 4% Electrical & Electronics 16% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S Revenue by Region Operating Income & Margin 2 0 1 8 R EV EN U E | $ 6 4 6 M I L L I O N PolyOne Corporation 41 $21 $57 $72 0.1% 5.1% 9.3% 11.2% 2005 2009 2013 2018 Europe 28% United States 46% Asia 24% Canada 2% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S EN D M A R K ET S & S O L U T I O N S PolyOne Corporation 42 Specialty Vinyl Solutions Healthcare Formulations Smart Device Materials Flame Retardant Polymers Building & Construction 28% Industrial 18% Transportation 17% Wire & Cable 16%Consumer 7% Appliance 6% Packaging 4% Electrical & Electronics 4% Asia 2% United States 78% Mexico 5% Canada 15% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S Operating Income & MarginRevenue by Region 2 0 1 8 R EV EN U E | $ 7 3 6 M I L L I O N $40 $24 $56 $74 4.6% 3.6% 7.2% 10.0% 2005 2009 2013 2018 PolyOne Corporation 43 D I S T R I B U T I O N EN D M A R K ET S & S U P P L I ER S PolyOne Corporation 44 Healthcare 27% Transportation 22% Industrial 18% Consumer 12% Appliance 6% Electrical & Electronics 5% Building & Construction 5% Packaging 3% Wire & Cable 2% $20 $25 $63 $71 2.9% 4.0% 5.9% 5.6% 2005 2009 2013 2018 Operating Income & Margin2018 Revenue | $1.3 Billion http://www.polyone.com/Pages/VariationRoot.aspx O V E R V I E W O F R A W M A T E R I A L P U R C H A S E S PolyOne Corporation 45 T A R G E T E N D M A R K E T S & A P P L I C A T I O N E X A M P L E S PolyOne Corporation 46 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 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 Target End Markets… Consumer Thermally Conductive Components Polymer Colorants Elastomeric Grips and Handles Structural Composite Components 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 Luxury Packaging GravitechTM Density Modified Polymers Optimize Color Usage OnColorTM Super Concentrates Combat Bacteria Formation WithStandTM Antimicrobial Technology Medical Device Housings Chemically Resistant Engineered Polymers Color & Design Services Outdoor Applications Fiber Colorants 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.
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Investor Day POLYONE I N V E S T O R P R E S E N T A T I O N M A Y 2 0 1 9 FORWARD LOOKING STATEMENTS PolyOne Corporation 2 • • • • • • • • • • USE OF NON-GAAP MEASURES PolyOne Corporation 3 • • • 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 2 0 1 8 R E V E N U E | $ 3 . 5 B I L L I O N Transportation 17% Industrial 15% Consumer 12% Packaging 11% Wire & Cable 10% Appliance 5% United States 57% Europe 16% Asia 10% Latin America 10% Canada 7% Distribution 35% Performance Products & Solutions 19% Specialty Engineered Materials 17% Color Additives & Inks 29% Segment End Market Geography Building & Construction 11% Electrical & Electronics 6% Healthcare 13% 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 7 9 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.06 $2.21 2006 2018 ROIC** 5.0% 14.1% Operating Income % of Sales Color, Additives & Inks 1.7% 15.1% Specialty Engineered Materials 1.1% 11.2% Performance Products & Solutions 4.3% 10.0% Distribution 2.6% 5.6% A D J U S T E D E P S E X P A N S I O N 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 strategic acquisitions Innovate 600K-1M commercial resources 5-7% Double acquired margins Lean Six Sigma commercial excellence 531 710 130 164 504 663 2014 2018 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 DDI N G C U S T O M E R T O U C H P O I N T S 4 24 2014 2018 Inside sellers $11M $109M 2014 2018 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 Vitality Index 12% 35% 2006 2018 $20 $56 2006 2018 Transformational Adjacent Core 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 Market Technical I N N O V A T I O N I N N O V A T I O N P I P E L I N E PolyOne Corporation 15 PrototypeFrame Opportunity Scale-up & Test Market Build Business Case Commercial Launch (since 2017) Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 6 11 4 4 3 2 28 0 5 10 7 2 5 5 Breakthrough Platform Derivative F L A M E R E T A R D A N T P O L Y M E R S A D V A N C E D C O M P O S I T E S B A R R I E R M A T E R I A L S C O L O R A N T T E C H N O L O G I E S T H E R M O P L A S T I C E L A S T O M E R S 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 16 C O M P O S I T E S R E F R E S H E R PolyOne Corporation 17 Fiber Polymer Composite 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 Thermoplastic Composites Long Fiber Reinforced Thermoplastics Continuous Fiber Thermosets Long Fiber Reinforced Thermoplastics Continuous Fiber Thermosets 2012 2015 20162009 2011 2018 PolyOne Corporation 2019 18 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 19 W A T E R C R A F TR A I L H E A V Y T R U C K F I B E R - L I N E H I G H L I G H T S PolyOne Corporation 20 $100M • • • • • • • • • • • • • • • • • • • Customer Value Fiber-Line Fiber Processing Capabilities Polymer Formulation Capabilities 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 21 • • • • • • • • • F I B E R O P T I C A L G R O W T H D R I V E R S PolyOne Corporation 22 5G Networks 10x 8x 5G vs. 4G PolyOne Corporation 23 Safety Technology Geography Service FinancialPeople 8-10% with ability to double I N V E S T - T O - G R O W M & A S T R A T E G Y PolyOne Corporation 24 Capture sourcing synergies Cross-sell & blend technology 8-10% operating margins I N V E S T - T O - G R O W M & A P L A Y B O O K Protect customers Retain employees Implement LSS to drive efficiency improvements Innovate with combined portfolio Safety First!
T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y SERVICE: T H E T I M E L E S S D I F F E R E N T I A T O R PolyOne Corporation 31 T A L E N T D E V E L O P M E N T PolyOne Corporation 32 Leadership Program Participants 2012 2013 2014 2015 47 0 86 2016 2018 125 169 315 Campus Hires 2008 2011 2014 2017 0 25 90 47 PolyOne LSS Blackbelts 2008 2011 2014 2018 0 67 220 147 2018 141 A U N I Q U E C U S T O M E R E X P E R I E N C E Industrial Design IQ DESIGN LABS PolyOne Corporation 33 Material & Color Expertise Manufacturing Expertise 3 14 2014 2018 Industrial designers $0 $10M 2014 2018 $4M $80M 2014 2018 Opportunity funnel New business revenue LSS CUSTOMER FIRST PolyOne Corporation 34 Customer Projects 2014 2018 2 104 3 D P R I N T I N G B R I N G I N G N E W I D E A S T O L I F E PolyOne Corporation 35 PolyOne Corporation 36 M O N T H M O N T H M O N T H M O N T H M O N T H M O N T H 99.9% up to 24 weeks 6 hours C O L O R M A T R I X S E L E C T ™ I N N O V A T I N G W I T H P O L Y O N E PolyOne Corporation 37 SEGMENT HIGHLIGHTS C O L O R , A D D I T I V E S & I N K S EN D M A R K ET S & S O L U T I O N S PolyOne Corporation 38 Solid Colorants Performance Additives Screen Printing Inks Liquid Colorants Packaging 28% Industrial 14% Textiles 13% Wire & Cable 11% Building & Construction 10% Transportation 8% Consumer 8% Healthcare 5% Appliances 2% Electrical & Electronic 1% Operating Income & MarginRevenue by Region C O L O R , A D D I T I V E S & I N K S 2 0 1 8 R E V E N U E | O V ER $ 1 B I L L I O N $4 $25 $104 $159 0.9% 5.5% 12.2% 15.1% 2005 2009 2013 2018 PolyOne Corporation 39 Europe 35% United States 45% Asia 14% Canada 1% Mexico 3% South America 2% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S EN D M A R K ET S & S O L U T I O N S PolyOne Corporation 40 Engineered Formulations Advanced Composites Thermoplastic Elastomers Consumer 21% Transportation 18% Wire & Cable 13%Healthcare 9% Industrial 9% Packaging 7% Appliance 3% Building & Construction 4% Electrical & Electronics 16% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S Revenue by Region Operating Income & Margin 2 0 1 8 R EV EN U E | $ 6 4 6 M I L L I O N PolyOne Corporation 41 $21 $57 $72 0.1% 5.1% 9.3% 11.2% 2005 2009 2013 2018 Europe 28% United States 46% Asia 24% Canada 2% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S EN D M A R K ET S & S O L U T I O N S PolyOne Corporation 42 Specialty Vinyl Solutions Healthcare Formulations Smart Device Materials Flame Retardant Polymers Building & Construction 28% Industrial 18% Transportation 17% Wire & Cable 16%Consumer 7% Appliance 6% Packaging 4% Electrical & Electronics 4% Asia 2% United States 78% Mexico 5% Canada 15% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S Operating Income & MarginRevenue by Region 2 0 1 8 R EV EN U E | $ 7 3 6 M I L L I O N $40 $24 $56 $74 4.6% 3.6% 7.2% 10.0% 2005 2009 2013 2018 PolyOne Corporation 43 D I S T R I B U T I O N EN D M A R K ET S & S U P P L I ER S PolyOne Corporation 44 Healthcare 27% Transportation 22% Industrial 18% Consumer 12% Appliance 6% Electrical & Electronics 5% Building & Construction 5% Packaging 3% Wire & Cable 2% $20 $25 $63 $71 2.9% 4.0% 5.9% 5.6% 2005 2009 2013 2018 Operating Income & Margin2018 Revenue | $1.3 Billion http://www.polyone.com/Pages/VariationRoot.aspx O V E R V I E W O F R A W M A T E R I A L P U R C H A S E S PolyOne Corporation 45 T A R G E T E N D M A R K E T S & A P P L I C A T I O N E X A M P L E S PolyOne Corporation 46 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 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 Target End Markets… Consumer Thermally Conductive Components Polymer Colorants Elastomeric Grips and Handles Structural Composite Components 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 Luxury Packaging GravitechTM Density Modified Polymers Optimize Color Usage OnColorTM Super Concentrates Combat Bacteria Formation WithStandTM Antimicrobial Technology Medical Device Housings Chemically Resistant Engineered Polymers Color & Design Services Outdoor Applications Fiber Colorants 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.