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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 0.56 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 C O M M O D I T Y T O S P E C I A L T Y T R A N S F O R M A T I O N PolyOne Corporation 6 • Volume driven, commodity production • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures • Shift to value-based selling & an innovative culture • New leadership team appointed • Implementation of four pillar strategy • Investment in commercial training and innovation • Faster growing, high margin focus • Accelerated growth with world class vitality index • Significant commercial resource additions • Expanded margins with specialty focus • Acquired strategic, bolt-on companies to expand technology offerings and improve geographic breadth Volume Value Transformation The Future 2006 - 2013 2013 – 20192000-2005 2006 - 2013 • Landmark portfolio transformation creates specialty growth company • Sustainability / mega- trends drive above market growth 2020 and Beyond PolyOne Corporation 7 P O L Y O N E 2 0 1 9 R E V E N U E | $ 2 . 9 B I L L I O N Segment End Market Geography Transportation 15% Healthcare 15% Industrial 14% Packaging 13% Consumer 12% Wire & Cable 11% Building & Construction 6% Electrical & Electronics 6% Textiles 5% Appliance 3% Color Additives & Inks 34% Distribution 41% Specialty Engineered Materials 25% United States 54% Europe 19% Asia 11% Latin America 11% Canada 5% P R O O F O F P E RFO RMAN CE C O N S E C U T I V E Y E A R S 10 A D J U S T E D E P S E X P A N S I O N PolyOne Corporation 8 $1.69 $1.51 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 9 P E O P L E P R O D U C T S P L A N E T P E R F O R M A N C E Double digit annual EPS growth Expand specialty portfolio with strategic acquisitions Innovate and develop new technologies and services Repurchase 600K-1M shares annually Increase commercial resources 5-7% annually Double acquired company margins Enhance efficiencies through Lean Six Sigma and commercial excellence 531 710 1,042 130 164 208 504 663 880 2014 2018 2019E PF* R&D / Technical Marketing Sales PolyOne Corporation 10 + 34% + 26% + 32% E X P A N S I O N O F COMMERCIAL RESOURCES D R I V I N G G R O W T H $2.9 $2.9 $3.5 2015 2016 2017 2018 2019E PF Total + 9% Organic + 5% Revenue in Billions Total + 10% Organic + 7%+ 47% + 27% + 33% $4.0 $3.2 2019E PF* * 2019E Pro Forma for PP&S Divestiture and Clariant Masterbatch business 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 11 Expanded Path Traditional Path Strategic Accounts/ Field Sales Business Development Customer Service Web and Social Media Inside Sales PolyOne Corporation 12 Investments in digital and dedicated inside sales to improve customer experience 110% increase in leads (from 6,000 to 12,700) driven by website, phone, and online chat EXPANDED PATH A D D I N G C U S T O M E R T O U C H P O I N T S 4 33 2014 2019 Inside sellers $11M $87M 2014 2019 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 13 Facilitate alternative energy solutions Light- weighting Reduce packaging materials Improve recyclability Reduce spread of infection R E V E N U E F R O M S U S T A I N A B L E S O L U T I O N S PolyOne Corporation 14 2016 2017 2018 2019 Lightweighting Reduced Material Requirements Improved Recyclability Renewable Energy Applications Eco-conscious Bio-derived Content Reduced Energy Use VOC Reduction $275M $325M $355M $410M 14% Total Annual Growth 9% Organic Annual Growth I N N O V A T I O N PolyOne Corporation 15 Customization 55% M&A 30% Innovation Pipeline 15% Innovation comes from Research & Development Spend ($ millions) Vitality Index % of sales from products launched last 5 years 12% 37% 2006 2019 $20 $51 2006 2019 Transformational Opportunity for Growth Through M&A Adjacent Opportunity for Growth Through New Product Pipeline Core Customization 3 H O R I Z O N S O F D E V E L O P M E N T PolyOne Corporation 16 Incremental development from existing base of technology New development adjacent to current technology New technology development outside of and with our current base Service adjacent markets and customers Create new markets, target new customer needs Service existing markets and customers Market Technical I N N O V A T I O N Non-Halogen Flame Retardants Barrier Technologies Fiber Colorants Advanced Composites Thermoplastic Elastomers Gordon Composites/ Polystrand – Composites GLS – Thermoplastic Elastomers ColorMatrix – Liquid Color & Additives PlastiComp Fiber-Line I N N O V A T I O N S P O T L I G H T : C O M P O S I T E S PolyOne Corporation 17 C O M P O S I T E M A T E R I A L S Glass Carbon Aramid Thermosets Thermoplastics PolymersFibers PolyOne Corporation 18 Focused End Markets • Wire & Cable / Electrical • Consumer • Transportation • Industrial C O M P O S I T E S P O R T F O L I O D I V E R S E C A P A B I L I T I E S A N D S O L U T I O N S S E R V I N G M A N U F A C T U R E R S A N D O E M S PolyOne Corporation 19 LFT Tapes Laminates/Panels Shapes Pultrusion Engineered Fibers P O L Y O N E A P P L I C A T I O N S I N F I B E R O P T I C C A B L E S PolyOne Corporation 20 1.
Leverage PolyOne’s global reach Phase 1 Phase 2 Phase 3 18-20% operating margins Invest in commercial resources I N V E S T - T O - G R O W P R O O F O F P E R F O R M A N C E PolyOne Corporation 24 Commercial Resources Operating Income ($ in millions) Operating Margins 256 309 At Acquisition Today $36 $100 At Acquisition Today 9% 19% At Acquisition Today Established Acquisitions (> 7 years) + 20% + 165% + 1000 bps CLARIANT MASTERBATCH ACQUISITION DRIVES NEXT LEVEL SPECIALTY TRANSFORMATION ACCELER ATING GR OWTH WITH SUSTAINABLE SOLUTIONS T R A N S F O R M A T I O N H E A D L I N E S PolyOne Corporation 26 F I T W I T H F O U R P I L L A R S T R A T E G Y PolyOne Corporation 27 Specialization • Innovation-led organization with heavy emphasis on R&D • World-class expertise in color formulation • Strong presence in specialty end markets including Consumer, Packaging and Healthcare Globalization • Diverse geographic portfolio with an established presence in every major region • Expands PolyOne’s ability to serve customers in key growth areas including India, China and Southeast Asia Operational Excellence • Extensive manufacturing footprint with 46 facilities • Organizational focus on optimizing supply chain to better serve customers • Color design expertise Commercial Excellence • Value-focused salesforce with vast experience marketing and commercializing specialty technologies • Diverse customer portfolio with established OEM’s People Experienced and talented associates with a winning mentality E N D M A R K E T T R A N S F O R M A T I O N PolyOne Corporation 28 Building & Construction 5% 2006 2019E PF* 4% 12% 10% 18% 8% 20% 2006 2019E PF* Healthcare Consumer Packaging 50% 22% High Growth End Markets Percentage of Total Revenue 38% * 2019E Pro Forma for PP&S Divestiture and Clariant Masterbatch business E N D M A R K E T T R A N S F O R M A T I O N PolyOne Corporation 29 Packaging 8% Building & Construction 38% Wire & Cable 11% Industrial 10% Electrical & Electronic 7% 2006 2019E PF* Healthcare 4% Transportation 12% Consumer 18% Building & Construction 5% Wire & Cable 6% Industrial 12% Electrical & Electronic 5% Appliance 3% Textiles 6% Transportation 13% Healthcare 12% Packaging 20% Consumer 10% * 2019E Pro Forma for PP&S Divestiture and Clariant Masterbatch business C O M P L E M E N T A R Y G E O G R A P H I C P R E S E N C E PolyOne Corporation 30 United States 38% Europe 33% Asia 19% Canada 4% Latin America 6% United States 22% Europe & Middle East 48% Asia 23% Canada 1% Latin America 6% Color & Engineered Materials Clariant Masterbatch Business Net Sales by Geographic Region United States 31% Europe & Middle East 39% Asia 21% Canada 3% Latin America 6% Pro Forma Color & Engineered Materials U N I F I E D F O C U S O N S U S T A I N A B I L I T Y PolyOne Corporation 31 2006 - 2013 2013 – 2019 PEO PLE PRO D U C TS PLA N ET PER FO R M A N C E PolyOne Clariant Masterbatch Business • Building mini-recycling plants to facilitate customer projects on design for recycling - CycleWorks • Uses packaging additives & colorants to improve recyclability and enhance automated sorting • Manufactures oxygen scavengers to extend shelf-life of perishable items and reduce material requirements • Combines UV-blocking additive colorants & other barriers to prevent spoilage and waste • Offers spin-dyeing solutions that use significantly less water than traditional methods, allowing for sustainable coloration of textiles • Produces infrared absorbing additives that reduce energy requirements for bottle manufacturing ($ in millions) PolyOne (Continuing Operations) Clariant Color & Additive Masterbatch Business Synergies New PolyOne 2019 Total Sales $2,863 $1,150 $4,013 2019 Adjusted EBITDA $309 $130 $60 $499 % Margin 10.8% 11.3% 12.4% 2019 CapEx $68 $85 % Sales 2.4% 2.1% 2019 Free Cash Flow $161 $250 2019 Adjusted EPS $1.69 $2.22 2019 PF Adjusted EPS $1.69 $2.54 P O L Y O N E + C L A R I A N T M A S T E R B A T C H B U S I N E S S PolyOne Corporation 32 (1) Excludes step-up of depreciation & amortization related to purchase accounting of transaction (1) $0.85/share O V E R 8 5 % O F A D J U S T E D E B I T D A F R O M S P E C I A L T Y PolyOne Corporation 33 46% 66% 0% 20% 40% 60% 80% 100% 2005 2010 2015 2019E PF % o f A d ju st e d E B IT D A * JV's Performance Products & Solutions Distribution Specialty 7% 87% * Adjusted EBITDA is EBITDA excluding corporate costs and special items ** 2019E Pro Forma for PP&S Divestiture and Clariant Masterbatch business acquisition with synergies Specialty EBITDA $14M $117M $273M $500M ** T R A N S A C T I O N O V E R V I E W • Expected mid-2020, subject to regulatory approvals and customary closing conditions Closing Conditions / Timing • Committed financing in place • Permanent financing to be combination of available cash on-hand, new debt and equity component to limit leverage • Equity issuance of $500MM • Target net leverage below 3.5x, 3.1x synergized PolyOne Corporation 36 • $1.45 B net purchase price • Represents 11.1x adjusted EBITDA (excluding synergies), 7.6x adjusted EBITDA (including synergies) • Pre-tax synergies of $60MM expected to be fully realized by the end of 2023 • Synergies realized from sourcing, operational, technology / commercial, and general administrative Transaction Value Synergies Financing Estimated Synergy Breakdown $60MM • Expect EBITDA synergies of $60MM – Proven integration expertise with a decade of acquisition experience – Administrative synergies reflect reduction of duplicative internal and third-party costs • Run rate synergies of $20MM by the end of Year 1 with $60MM achieved by the end of Year 3 • Significant additional opportunity for geographical expansion – Clariant Masterbatch business has complementary regional presence in key growth areas including India & Southeast Asia • Opportunity to accelerate growth with a combined portfolio of innovative solutions aligned with sustainability megatrends Sourcing 40% Operational 30% Administrative 30% PolyOne Corporation 37 S I G N I F I C A N T S Y N E R G Y O P P O R T U N I T I E S $450 $600 $624 $743 2019 2020 2021 2022 2023 2024 2025 2026 A T T R A C T I V E F I N A N C I N G S T R U C T U R E Attractive Debt Maturity Profile Existing Revolver Existing Senior Notes Existing Term Loan B New Debt Financing Financing Summary Terms on New Debt • $465 million of cash from the balance sheet expected to fund a portion of the purchase price • Bridge financing for remainder fully committed from Citi, Morgan Stanley and Wells Fargo • Permanent financing expected to include a combination of long-term debt and new equity • The timing of the permanent financing is subject to a number of factors, including, but not limited to, market conditions • PolyOne is committed to preserving a strong balance sheet – Target net leverage at close below 3.5x, excluding synergies • Pro forma capital structure positions PolyOne with flexibility to pursue continued growth strategy • New financing expected to have same or better covenant package than existing capital structure • Capital structure would be “covenant lite” Capital Policy • Transaction in line with PolyOne’s disciplined capital allocation policy • Existing PolyOne dividend policy to be maintained • Focus on deleveraging in the near term 2028+ PolyOne Corporation 38 PolyOne Corporation 37 $0.16 $0.20 $0.24 $0.32 $0.40 $0.48 $0.54 $0.70 $0.78 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Cumulative Share Repurchases (In millions) $0 $150 $300 $450 $600 $750 $900 2011 2012 2013 2014 2015 2016 2017 2018 2019 $917M R E T U R N I N G C A S H T O S H A R E H O L D E R S O V E R $ 1 . 2 B I L L I O N S I N C E 2 0 1 1 PolyOne Corporation Increasing Annual Dividend 38 $0.81 PolyOne Corporation 39 W H Y I N V E S T I N P O L Y O N E ?
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 Transformational M&A with PP&S divestment and pending acquisition of Clariant Masterbatch business Growing leadership position in attractive markets Innovation, technology and service are differentiators Capital management is a strength: Record-setting cash generation to continue for years Proven acquisition strategy with robust pipeline Commercial investments are fueling momentum and generating organic growth 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 40 T A L E N T D E V E L O P M E N T PolyOne Corporation 41 Leadership Program Participants 2012 2013 2014 2015 47 0 86 2016 2019 125 169 412 Campus Hires 2008 2011 2014 2017 0 25 90 47 PolyOne LSS Blackbelts 2008 2011 2014 2019 0 67 247 147 2019 134 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 PolyOne Corporation 42 Computer Aided Engineering Design Strategy 3 15 2014 2019 Designers & Engineers $0 $15M 2014 2019 $4M $87M 2014 2019 Opportunity funnel Total Revenue LSS CUSTOMER FIRST PolyOne Corporation 43 Customer Engagements Enables sales growth by building more intimate customer relationships, giving us insight to customers’ needs, with a service that is not easily replicated 2014 2019 2 210 I N N O V A T I N G W I T H P O L Y O N E PolyOne Corporation 44 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 45 Solid Colorants Performance Additives Screen Printing Inks Liquid Colorants Packaging 31% Industrial 14% Textiles 13% Wire & Cable 10% Building & Construction 9% Consumer 8% Transportation 7% Healthcare 5% Appliances 2% Electrical & Electronics 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 9 R E V E N U E | O V E R $ 1 B I L L I O N PolyOne Corporation 46 Europe 34% United States 44% Asia 15% Canada 1% Mexico 3% South America 3% $4 $25 $104 $147 2005 2009 2013 2019 0.9% 5.5% 12.2% 14.7% 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 47 Engineered Formulations Advanced Composites Thermoplastic Elastomers Wire & Cable 15% Telecommunications (FOC) 13% Consumer 19% Electrical & Electronics 12% Healthcare 9% Industrial 8% Packaging 6% Appliance 2% Building & Construction 2% Transportation 14% Note: (FOC) refers to Fiber Optic Cabling 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 9 R E V E N U E | $ 7 5 0 M I L L I O N PolyOne Corporation 48 Europe 27% United States 54% Asia 17% Canada 2% $21 $57 $87 2005 2009 2013 2019 0.1% 5.1% 9.3% 11.6% 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 49 Healthcare 28% Transportation 23% Industrial 19% Consumer 12% Appliance 6% Electrical & Electronics 5% Building & Construction 4% Packaging 2% Wire & Cable 1% Operating Income & Margin2019 Revenue | $1.2 Billion $25 $63 $75 2005 2009 2013 2019 $20 2.9% 4.0% 5.9% 6.3% 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 50 Performance Additives 15% Polyethylene 13% Pigments 9% Styrenic Block Copolymer 7% Nylon 7% TiO2 6% Polypropylene 5% Dyestuffs 4% Plasticizers 3% Other Raw Materials 31% $900 million of raw material purchases in 2019 excluding Distribution business Note: All figures exclude divested PP&S business 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 51 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 Impart weight, sound and metallic finish to caps and closures for cosmetics and spirits applications Elevate quality and prestige perceptions among high-end consumers Eliminate time and cost associated with secondary operations and assembly Luxury Packaging GravitechTM Density Modified Polymers Eliminate costs by increasing pigment density Enhance color performance without altering form and formulation Increase design capabilities by reducing weight and layer thickness Optimize Color Usage OnColorTM Super Concentrates Inhibit microbial growth on polymer surfaces Enhance value or products and devices Highly versatile concentrate with the ability to be incorporated into a wide variety of products Combat Bacteria Formation WithStandTM Antimicrobial Technology Durable, long-lasting products stand up to the most aggressive disinfectants Minimize environmental stress cracking and discoloration One of the broadest medically approved polymer and colorant portfolios Medical Device Housings Chemically Resistant Engineered Polymers Color & Design Services Greater control of color development and supply chain Work across entire design process from concept to commercialization Inspire creativity in the use of polymer materials, colors, and effects Innovative brand differentiation Faster development timelines Outdoor Applications Leading provider of high performance specialty materials for the recreational and sports & leisure industry Well positioned across all segments to address market needs Metal to Polymer Conversion Lightweighting Thermal Management Impact Performance ColorMatrix Fiber Colorant Solutions Proprietary advanced liquid color formulations and equipment enable greater efficiency and productivity Eliminates aqueous dyeing and its associated wastewater treatment Solid Color Concentrates Extrusion-spun fibers colored via solid masterbatch Fiber Colorants PolyOne Corporation 63 Global high yield & leveraged finance Conference Forward Looking Statements USE OF �NON-GAAP�MEASURES Vision Safety First Commodity to Specialty Transformation PolyOne�2019 Revenue | $2.9 billion Slide Number 8 Sustainable Path to Double-Digit EPS Growth Expansion of Commercial Resources driving growth The Evolving Customer Relationship Slide Number 12 Aligning with trends for Growth Revenue from Sustainable Solutions Innovation 3 Horizons of Development Innovation Spotlight: Composites COMPOSITE MATERIALS COMPOSITEs Portfolio�Diverse Capabilities and Solutions Serving Manufacturers and OEMS PolyOne applications in Fiber optic cables Fiber optical growth drivers Invest-to-Grow M&A Strategy Invest-to-Grow M&A Playbook Invest-to-Grow Proof of performance Clariant Masterbatch Acquisition Drives�Next Level Specialty Transformation Transformation Headlines Fit with Four Pillar Strategy End Market Transformation End Market Transformation Complementary Geographic Presence Slide Number 31 PolyOne + Clariant Masterbatch Business Over 85% of Adjusted EBITDA from Specialty Transaction overview Significant Synergy Opportunities Attractive Financing Structure Slide Number 37 Returning cash to shareholders�Over $1.2 Billion since 2011 Why Invest In PolyOne?
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PolyOne Corporation Page 1 PolyOne Investor Presentation RW Baird 2015 Industrial Conference November 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.
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 $0.12 $0.27 $0.21 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 2006 2007 2008 2009 2010 2011 2012 2013 2014 Adjusted EPS PolyOne Corporation Page 6 Old PolyOne *Operating Income excludes corporate charges and special items 2% 34% 43% 62% 65% 66% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2013 2014 YTD 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 $183M Mix Shift Highlights Specialty Transformation Transformation 2020 Platinum Vision Platinum Vision PolyOne Corporation Page 7 Confirmation of Our Strategy Specialization Globalization Operational Excellence Commercial Excellence Driven by our core values of Collaboration, Innovation and Excellence, we are the world’s premier provider of specialized polymer materials, services and solutions PolyOne Corporation Page 8 2006 YTD 2015 2020 “Where we were” “Where we are” Platinum Vision 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 17.2% 20%+ Global Specialty Engineered Materials 1.1% 15.1% 20%+ Designed Structures & Solutions 1.4% (2012) 3.5% 12 – 14% Performance Products & Solutions 5.5% 8.1% 10 – 12% Distribution 2.6% 6.6% 6.5 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 66% 80%+ 3) ROIC 5.0% 11.9% 15% 4) Adjusted EPS Growth N/A 24 Consecutive Quarters of YOY EPS Growth Double Digit Expansion Proof of Performance & 2020 Goals PolyOne Corporation Page 9 Innovation Drives Earnings Growth *Percentage of Specialty Platform revenue from products introduced in last five years $20 $52 2006 TTM Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 28% 2006 TTM Specialty Platform Gross Margin % 12% 43% 2006 TTM Specialty Vitality Index Target ≥ 35% TTM 9/30/15 TTM 9/30/15 TTM 9/30/15 PolyOne Corporation Page 10 Innovation Pipeline Potential Prototype Frame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 12 4 9 6 1 6 3 7 4 5 6 1 1 7 2 Breakthrough Platform Derivative Number of Projects 12 10 23 19 10 74 Specialty Addressable Market ($ millions) - - $1,150 $1,000 $250 $2,400 PolyOne Corporation Page 11 Lightweighting with Advanced Composites Increasing Healthcare Penetration Innovation Initiatives Expansion in Consumer Markets New Market Development $$$ $$ $ High Temperature Polymers PolyOne Corporation Page 12 Design and Service as a Differentiator Right Material & Color Desired Product Design Appropriate Manufacturing Process Delivering Concept to Commercialization Connecting the Dots with iQ Design Labs and InVisiO Color Design PolyOne Corporation Page 13 Customer First Through World-Class Service Strengthening relationships through: Providing LSS services to small/medium sized customers • Supporting customers who lack their own formal process improvement initiatives Providing training in Customer Centric Selling Skills with customers’ sales force PolyOne Corporation Page 14 60% 97% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 Q3 2015 Pension Funding** As of September 30, 2015 Debt Maturities & Pension Funding Net Debt / Adjusted EBITDA** = 2.1x $49 $121 $317 $600 $400 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2018 2020 2023 Debt Maturities As of September 30, 2015 ($ millions) Coupon Rate: 7.500% Variable* 7.375% 5.250% ** includes US-qualified pension plans only *Weighted average rate on revolver was 2.49% as of 9/30/15 **TTM 9/30/2015 PolyOne Corporation Page 15 Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return Expanding our sales, marketing, and technical capabilities Investing in operational and LSS initiatives ~75% of capital expenditures fund growth initiatives Organic Growth Acquisitions Share Repurchases Dividends $0.16 $0.20 $0.32 $0.40 $0.48 $0.10 $0.20 $0.30 $0.40 $0.50 2011 2012 2013 2014 2015 2016 Annual Dividend Targets that expand our: • Specialty offerings • End market presence • Geographic breadth Synergy opportunities Adjacent material solutions Repurchased nearly 2.4 million shares in Q3 2015 Repurchased 14.8 million shares since early 2013 5.2 million shares are available for repurchase under the current authorization $0.24 PolyOne Corporation Page 16 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
Platform operating income mix percentage 2005* 2008* 2010* 2013 2014 2015 YTD Global Color, Additives and Inks $ 4.3 $ 28.1 $ 37.7 $104.0 $124.9 $ 107.9 Global Specialty Engineered Materials 0.4 17.6 49.7 57.2 72.4 63.2 Designed Structures and Solutions - - - 33.4 45.1 12.0 Specialty Platform $ 4.7 $ 45.7 $ 87.4 $194.6 $242.4 $ 183.1 Performance Products and Solutions 75.7 31.3 54.0 56.0 63.1 43.9 Distribution 19.5 28.1 42.0 63.3 68.2 52.4 Joint ventures 91.9 28.6 18.9 - - — Corporate and eliminations (51.5) (425.1) (27.7) (82.4) (218.6) (59.8) Operating income (loss) GAAP $140.3 $(291.4) $174.6 $231.5 $155.1 $ 219.6 Less: Corporate operating expense 51.5 425.1 27.7 82.4 218.6 59.8 Operating income excluding Corporate $191.8 $133.7 $202.3 $313.9 $373.7 $ 279.4 Specialty platform operating mix percentage 2% 34% 43% 62% 65% 66% Adjusted EPS is calculated as follows: Adjusted EPS 2006Y* 2007Y* 2008Y* 2009Y* 2010Y 2011Y 2012Y 2013Y 2014Y Net income attributable to PolyOne common shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 Joint venture equity earnings, after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) - - - Special items, after tax(1) (21.2) 41.4 310.0 (31.0) 15.8 (30.5) 35.7 30.4 101.0 Tax adjustments(2) (30.0) (30.7) 147.2 (44.9) (88.3) (42.3) 0.5 2.2 (10.5) Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8 96.5 93.5 Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 2 Adjusted EPS 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 Net income attributable to PolyOne common shareholders $ 16.0 $ 19.4 $ 23.2 $ 32.3 $ 44.5 Special items, after tax(1) 3.1 5.3 10.5 13.2 12.6 Tax adjustments(2) (0.3) 0.1 1.8 (0.1) (9.6) Adjusted net income $ 18.8 $ 24.8 $ 35.5 $ 45.4 $ 47.5 Diluted shares 94.3 90.2 98.1 93.1 88.4 Adjusted EPS $ 0.20 $ 0.27 $ 0.36 $ 0.49 $ 0.54 * Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principal or discontinued operations. (1) Special items are a non-GAAP financial measure and are used to determine adjusted earnings.
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INVESTOR DAY O R L A N D O , F L O R I D A | M A Y 2 0 1 8 FORWARD LOOKING STATEMENTS PolyOne Corporation 2 In this presentation, statements that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
I N V E S T O R D A Y A G E N D A M A Y 1 0 , 2 0 1 8 PolyOne Corporation 5 8:00 WELCOME BREAKFAST 9:00 Introduction: Bob Patterson 9:45 Investing for Growth: Michael Garratt Commercial Resources Innovation Service 10:15 SEGMENT REVIEWS PolyOne Distribution: Scott Horn Specialty Engineered Materials: Michael Garratt BREAK (10 MINUTES) SEGMENT REVIEWS (CONTINUED) Performance Products & Solutions: Don Wiseman Color, Additives & Inks: Mark Crist 11:40 Mergers & Acquisitions: Joel Rathbun 12:00 Financial Review: Brad Richardson 12:20 Conclusion/Q&A: Bob Patterson 1:00 LUNCH Bradley C.
PolyOne Corporation 91 S P E E D T O M A R K E T From concept to production 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% Reduction in turnaround time Traditional Timeline up to 24 weeks PolyOne ColorMatrix Select™ 6 hours PolyOne Corporation 92 “Being able to create color and produce parts in 1 day is unheard of in this industry.
https://www.avient.com/sites/default/files/AVNT Q1 2023 Earnings Press Release.pdf
The company noted that GAAP EPS includes $0.24 of special items (see Attachment 3) and $0.16 of intangible amortization expense (see Attachment 1).
You are advised to consult any further disclosures we make on related subjects in our reports on Form 10-Q, 8-K and 10-K that we provide to the Securities and Exchange Commission. 6 Investor Relations Contact: Giuseppe (Joe) Di Salvo Vice President, Treasurer and Investor Relations Avient Corporation +1 440-930-1921 giuseppe.disalvo@avient.com Media Contact: Kyle G.
Rose Vice President, Marketing and Communications Avient Corporation +1 440-930-3162 kyle.rose@avient.com mailto:giuseppe.disalvo@avient.com mailto:kyle.rose@avient.com 7 Attachment 1 Avient Corporation Summary of Condensed Consolidated Statements of Income (Unaudited) (In millions, except per share data) Three Months Ended March 31, 2023 2022 Sales $ 845.7 $ 892.2 Operating Income 57.1 102.2 Net income from continuing operations attributable to Avient shareholders 20.8 64.4 Basic earnings per share from continuing operations attributable to Avient shareholders $ 0.23 $ 0.70 Diluted earnings per share from continuing operations attributable to Avient shareholders $ 0.23 $ 0.70 Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special items, to assess performance and facilitate comparability of results.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Seaport%2520Global%2520Transports%2520%2526%2520Industrials%2520Conference.pdf
Addressable market exceeds $40 billion Strong performance demonstrates that our strategy and execution are working Megatrends and emerging opportunities align with strengths Innovation and services provide differentiation, incremental pricing power and competitive advantage Strategic balance between reinvestment for growth and returning cash to shareholders Strong and proven management team driving growth and performance 18 POLYONE CORPORATION Segment Highlights POLYONE CORPORATION 19 2016 Revenue: $0.8 Billion At a Glance: Color, Additives & Inks Key Applications 2016 Revenue by Industry Expanding Profits 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 14.7% 16.7% 16.0% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2020 Operating Income % of Sales Platinum Vision United States 45% Europe 33% Asia 15% Latin America 5% Canada 2% Packaging 30% Industrial 15% W & C 10% B & C 10% Textiles 9% Transportation 9% Consumer 7% Healthcare 6% Appliance 2% E & E 2% POLYONE CORPORATION 20 2016 Revenue: $0.6 Billion At a Glance: Specialty Engineered Materials 2016 Revenue by Industry Expanding Profits 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 12.1% 14.7% 14.3% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2020 Operating Income % of Sales Platinum Vision Consumer 19% Transportation 19% E & E 15% W & C 15% Healthcare 11% Industrial 8% Packaging 7% Appliance 3% B & C 3% United States 51% Europe 27% Asia 20% Canada 2% Key Applications POLYONE CORPORATION 21 2016 Revenue: $0.4 Billion At a Glance: Designed Structures & Solutions 2016 Revenue by Industry Expanding Profits 1.4% 5.6% 7.3% 3.0% 8-10% -0.9% 2012 2013 2014 2015 2016 2020 Operating Income % of Sales Platinum Vision Transportation 27% Industrial 21% Packaging 21% B & C 11% Healthcare 8% Consumer 8% Appliance 3% E & E 1% Key Applications United States 95% Canada 5% http://www.google.com/url?
sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.mullerquaker.com/products/greek100/greek100-peach-and-passion-fruit&ei=-acYVZq7EIqwyASDjYL4CA&bvm=bv.89381419,d.cWc&psig=AFQjCNGNCQY1_dCN2RPLzxtap_Pu0omTXQ&ust=1427765484498432 POLYONE CORPORATION 22 2016 Revenue: $0.7 Billion At a Glance: Performance Products & Solutions 2016 Revenue by Industry Expanding Profits 5.5% 6.9% 3.8% 3.6% 5.5% 4.3% 6.3% 7.2% 7.7% 8.3% 12-14% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2020 Operating Income % of Sales Platinum Vision 11.1% B & C 30% Transportation 18% W & C 16% Industrial 16% Appliance 6% Consumer 5% Packaging 5% E & E 3% Healthcare 1% United States 78% Canada 16% Latin America 4% Asia 2% Key Applications POLYONE CORPORATION 23 2016 Revenue: $1.1 Billion At a Glance: Distribution Key Suppliers ROIC Expanding Profits 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% 6.4% 5.9% 6.1% 6.6% 6.5-7.5% 6.4% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2020 Operating Income % of Sales Platinum Vision 15% 51% 2006 2016 Transportation 24% Healthcare 22% Industrial 18% Consumer 15% Appliance 6% E & E 5% B & C 4% Packaging 4% W & C 2% http://www.polyone.com/Pages/VariationRoot.aspx 24 POLYONE CORPORATION Application Examples POLYONE CORPORATION 25 Luxury Packaging with Gravitech Density Modified Polymers Impart weight, sound and metallic finish to caps and closures for cosmetics and spirits applications Elevate quality and prestige perceptions among high-end consumers Eliminate time and cost associated with secondary operations and assembly POLYONE CORPORATION 26 Eliminate costs by increasing pigment density Enhance color performance without altering form and formulation Increase design capabilities by reducing weight and layer thickness Optimize Color Usage with OnColor Super Concentrates POLYONE CORPORATION 27 Inhibit microbial growth on polymer surface Enhance value or products and devices Highly versatile concentrate with the ability to be incorporated into a wide variety of products Combat Bacteria Formation with WithStand Antimicrobial Technology POLYONE CORPORATION 28 Medical Device Housings with Chemically Resistant Engineered Polymers Durable, long-lasting products stand up to the most aggressive disinfectants Minimize environmental stress cracking and discoloration One of the broadest medically approved polymer and colorant portfolios POLYONE CORPORATION 29 Color & Design Services Greater control of color development and supply chain Work across entire design process from concept to commercialization Inspire creativity in the use of polymer materials, colors and effects Innovative brand differentiation Faster development timelines POLYONE CORPORATION 30 Outdoor Applications Leading provider of high performance specialty materials for the recreational and sports & leisure industry Well positioned across all segments to address market needs Metal to Polymer Conversion Lightweighting Thermal Management Impact Performance Source: Outdoor Industry Association POLYONE CORPORATION 31 Fiber Colorants Solutions for clothing, apparel, footwear, automotive & sporting goods ColorMatrix Fiber Colorant Solutions Proprietary advanced liquid color formulations and equipment enable greater efficiency and productivity Eliminates aqueous dyeing and its associated wastewater treatment Solid Color Concentrates Extrusion-spun fibers colored via solid masterbatch POLYONE CORPORATION 32 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 sensory properties 1 Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Senior management uses comparisons of adjusted net income attributable to PolyOne common shareholders, adjusted earnings per share (EPS) attributable to PolyOne common shareholders and operating income before special items to assess performance and allocate resources because senior management believes that these measures are useful in understanding current profitability levels and that current levels may serve as a base for future performance.
Adjusted EPS attributable to PolyOne common shareholders is calculated as follows: 2009* 2010 2011 2012 2013 2014 2015 2016 Net income attributable to PolyOne common shareholders $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6 $ 165.2 Joint venture equity earnings, after tax (19.0) (14.7) (3.7) — — — — — Special items, before tax(1) (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 35.5 Special items, tax adjustments(1) (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (20.7) Adjusted net income attributable to PolyOne common shareholders $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 180.0 Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 Adjusted EPS attributable to PolyOne common shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.13 Adjusted operating income is calculated as follows: 2006* 2016 Operating income $ 233.6 $ 281.9 Special items (1) (39.1) 35.3 Joint venture equity earnings (107.0) 0.0 Adjusted operating income $ 87.5 $ 317.2 * Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principle, discontinued operations or the related resegmentation. (1) Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel reduction programs, plant realignment costs, executive separation agreements; asset impairments; mark-to-market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non-recurring items; the effect of changes in accounting principles or other such laws or provisions affecting reported results and tax adjustments.
https://www.avient.com/sites/default/files/2022-07/ECCOH 5161 - OFC Blowing Application in Railways - Application Snapshot.pdf
OFC TECHNOLOGY LEADER M I C R O B U N D L E S I N B L O W I N G A P P L I C A T I O N F O R R A I L W A Y S • Strippable with fingers for easy installation/access to fibers • High speed processing at a low wall thickness • Low shrinkage • Resistance to chemicals and filling compounds • Meet XP C93-850-1-1 standard • Re-designed cable to provide advantageous functional and economical value • Improved flexibility compared to PBT and PP tubes, allowing longer blowing distances on paths with angles of 90° • Increased processing speed and improved ease of installation • Provided better cable lifetime value compared to alternative solutions ECCOH™ 6151 UV SEPAP Formulation KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2024-12/PKE grades for Powersports Application Bulletin.pdf
APPLICATION BULLETIN IMPROVED CHEMICAL RESISTANCE Engineered polyketone delivers excellent performance against aggressive chemicals, like H2SO4 for batteries (Figure 1), and performs similarly to nylon against typical chemicals tested in powersports, such as gasoline* (Figure 2).
Gasoline - 30% glass-filled (GF) grade, dry as molded (DAM), room temperature Testing methodology is an adaptation from ASTM D543 • Reapply freshly soaked gauze pad every 24 hours to prevent from drying out • Repeat for a total of 72 hours • Tensile properties recorded *Chemical resistance data for DEET, motor oil, glass cleaner, and sunscreen available upon request KEY CHARACTERISTICS Figure 1 Figure 2 3.34 3.84 3.63 1.96 2.21 0.99 3.43 3.86 3.93 1.76 3.49 2.01 3.26 3.66 3.74 1.45 1.06 0.989 2.98 3.99 3.41 1.41 1.07 0.88 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 30% LGF PKE 30% LGF PA6 30% LGF PA66 30% SGF PKE 30% SGF PA6 30% SGF PA66 Ft -lb /in Notched Izod Impact ASTM D256 23C DAM 23C Conditioned -40C DAM -40C Conditioned 1.47 1.37 1.37 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 Glass-Filled PKE Glass-Filled PA6 Glass-Filled PA66 g/ cm 3 Density of Polyketone vs Nylon ASTM D792 LESS MOISTURE ABSORPTION THAN NYLON 30% Short Glass Fiber (SGF) Comparison Moisture uptake, environmental chamber 62% RH, 70°C SIMILAR DENSITY TO NYLON ASTM D792 COMPARABLE AND CONSISTENT IMPACT PERFORMANCE* Notched Izod Impact (ASTM D256) of LGF and SGF for DAM and Conditioned Materials *3,000 hr weathering data available upon request KEY CHARACTERISTICS 1.844.4AVIENT www.avient.com Copyright © 2024, Avient Corporation.
https://www.avient.com/sites/default/files/resources/Overmolding_of_Thermoplastic_Elastomers_Engineered_solutions_for_consumer_product_differentiation.pdf
Figure 1.: Two shot injection molding machine with parallel barrels.
Each of the chemistries offer the properties governed by the building blocks. 1.
Reference: solutions that 1.
https://www.avient.com/sites/default/files/2020-07/avient-abac-arabic-200722.pdf
سياسة Avient العالمية لمكافحة الرشوة والفساد تاريخ الإصدار: 1 يوليو 2020 جدول المحتويات 1 سياستنا العالمية لمكافحة الرشوة والفساد 1 أهمية الامتثال 1 مسؤوليتنا 2 ما هي الرشوة؟ 2 تقديم رشوة للمسؤولين الحكوميين 2 الرشوة التجارية 2 مدفوعات التيسير والعملات الخفية 3 العمل مع الوكلاء والموزعين والأطراف الخارجية الأخرى 3 العناية الواجبة وعملية الموافقة 3 مؤشرات التحذير 3 المتطلبات المحاسبية وحفظ السجلات 3 الإبلاغ عن الانتهاكات المحتملة 4 Avient الخط الساخن للأخلاقيات في 4 الحماية من الانتقام 5 المرجع السريع: الممارسات المسموح بها والمحظورة بشأن مكافحة الرشوة والفساد 1 جدول المحتويات سياستنا العالمية لمكافحة الرشوة والفساد ہماری عالمگیر پالیسی تحظر Avient بشدة الغش والرشوة وغيرها من الممارسات التجارية الفاسدة في جميع عملياتها في أي مكان في العالم.
وينطبق هذا الحظر سواءً كان العرض أو الدفع يتم مباشرةً أو عن طريق شخص آخر. • .Avient إجراء إدخالات مضللة أو ناقصة أو خاطئة في دفاتر وسجلات تجاهل مؤشرات التحذير عند التعامل مع الأطراف الخارجية. • جدول المحتويات أمريكا الشمالية المقر العالمي آفون ليك، الولايات المتحدة الأمريكية 33587 ووكر رود آفون ليك، أوهايو ، الولايات المتحدة 44012 الخط المجاني: 9663 765 866 1+ الهاتف: 1000 930 440 1+ الفاكس:3064 930 440 1+ آسيا والمحيط الهادئ المقر الإقليمي بشنغهاي الصين 2ف، بلوك سي 200 جينسو رود بودونغ، 201206، شنغهاي، الصين الهاتف: 4888 6028 21 (0) 86+ الفاكس:4999 6028 21 (0) 86+ أمريكا الجنوبية المقر الإقليمي ساو باولو ، البرازيل جادة فرانسيسكو ناكاساتو، 1700 000- 13295إتوبيفا، ساو باولو، البرازيل الهاتف: 9200 4593 11 55+ أوروبا المقر الإقليمي بومرلوتش، لوكسمبورغ 19 طريق باستون بومرلوتش، لوكسمبورغ، L-9638 الهاتف: 35 050 269 352+ الفاكس: 45 050 269 352+ www.avient.com http://www.avient.com