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Create Packaging That Gets Noticed with New Impress™ High Gloss Metallic Effect Colorants from PolyOne
GUANGZHOU, China – PolyOne today announced the Asia launch of its new Impress™ High Gloss Metallic Effect Colorant at Chinaplas 2017.
A wide range of color options enable manufacturers to create almost unlimited combinations of color and gloss for bottles with a brilliant, attention-grabbing appearance.
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Addressable market exceeds $40 billion Strong performance demonstrates that our strategy and execution are working Megatrends and emerging opportunities align with our strengths Innovation and services provide differentiation, incremental pricing power, and competitive advantage Strong and proven management team driving growth and performance PolyOne Corporation Page 18 Appendix PolyOne Corporation Page 19 $0.17 $0.22 $0.24 $0.31 $0.44 $0.46 $0.00 $0.25 $0.50 Q1'10 Q1'11 Q1'12 Q1'13 Q1'14 Q1'15 Adjusted EPS $30 $34 $25 $30 $35 Q1 2014 Q1 2015 GCAI Operating Income (in millions) $18 $23 $15 $20 $25 Q1 2014 Q1 2015 GSEM Operating Income (in millions) Q1 2015 Financial Highlights Global Specialty Engineered Materials’ operating margin of 16.3% above the 2015 target Global Color Additives and Inks’ operating margin grew to 16.2% First quarter adjusted EPS has grown on average 23% per year since 2010 +26% +11% PolyOne Corporation Page 20 Appliances 2% Building & Construction 12% Consumer 7% Electrical & Electronics 1% Healthcare 6% Industrial 14% Packaging 31% Textiles 7% Transportation 8% Wire & Cable 12% 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 16.2% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2020 Operating Income % of Sales At a Glance Global Color, Additives and Inks 2014 Revenues: $0.9 Billion Solutions Expanding Profits 2014 Revenue by Industry Segment 14.7% Platinum Vision United States 44% Europe 36% Canada 2% Asia 12% Latin America 6% PolyOne Corporation Page 21 Appliances 4% Building & Construction 3% Consumer 18% Electrical & Electronics 16% Healthcare 12% Industrial 8% Packaging 5% Transportation 20% Wire & Cable 12% At a Glance Global Specialty Engineered Materials 2014 Revenues: $0.6 Billion Solutions 2014 Revenue by Industry Segment Expanding Profits 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 16.3% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2020 Operating Income % of Sales Platinum Vision 12.1% United States 44% Europe 33% Canada 2% Asia 19% Latin America 2% PolyOne Corporation Page 22 Appliances 2% Building & Construction 8% Consumer 5% Healthcare 6% Industrial 23% Packaging 27% Transportation 30% United States 96% Canada 4% At a Glance Designed Structures and Solutions Solutions 2014 Revenues: $0.6 Billion Expanding Profits 2014 Revenue by Industry Segment 1.4% 5.6% 7.3% 2.7% 12-14% 2012 2013 2014 Q1 2015 2020 Operating Income % of Sales Platinum Vision PolyOne Corporation Page 23 Appliances 8% Building & Construction 33% Consumer 5% Electrical & Electronics 3% Healthcare 1% Industrial 11% Packaging 5% Transportation 18% Wire & Cable 16% 5.5% 6.9% 3.8% 3.6% 5.5% 4.3% 6.3% 7.2% 6.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2020 Operating Income % of Sales At a Glance Performance Products and Solutions Solutions Expanding Profits 2014 Revenues: $0.8 Billion 10-12% Platinum Vision 2014 Revenue by Industry Segment 7.7% United States 80% Canada 14% Asia 2% Latin America 4% PolyOne Corporation Page 24 Appliances 6% Building & Construction 5% Consumer 13% Electrical & Electronics 6% Healthcare 23% Industrial 15% Packaging 4% Transportation 25% Wire & Cable 3% 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% 6.4% 5.9% 5.9% 6.5-7.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2020 Operating Income % of Sales 15% 50% 2006 Q1 2015 At a Glance Distribution Key Suppliers 2014 Revenues: $1.1 Billion ROIC Expanding Profits 6.1% Platinum Vision http://www.polyone.com/Pages/VariationRoot.aspx PolyOne Corporation Page 25 2 lbs Plastic = 3 lbs aluminum or 8 lbs steel or 27 lbs glass 33% less material by weight than aluminum 75% less material by weight than steel 93% less material by weight than glass Requires 91% less energy to recycle a pound of plastic versus a pound of paper Source: SPI: Sustainability and the Plastics Industry Plastics: Key to Future Sustainable Development PolyOne Corporation Page 26 Commitment to Operational Excellence 81% 93% 2006 2014 16.2% 9.9% 2006 2014 On-Time Delivery Working Capital % of Sales 5% 43% 2006 2014 Percent of Associates Trained in LSS Four consecutive years – CFO Magazine Best Working Capital Management in the chemical industry World’s Best Business Process Excellence Program in 2012* 103 trained Black Belts 247 trained Green Belts 127 trained Kaizen Leaders World’s Best Start-up Program for Lean Six Sigma Deployment in 2009* *Both awards received from International Quality and Productivity Center PolyOne Corporation Page 27 Application Examples PolyOne Corporation Page 28 $1.5 billion attractive, growing market Additives improve performance and reduce cost through light-weighting, reduced waste, faster cycle times, and extended shelf life of finished product Aligned with megatrend of protecting the environment: Sustainability benefits include lower package weight and improved recyclability of package at end of use Market Opportunity Leading Global Supplier of Additives In Growing PET Market Shelf-life extension Greater product consistency Recyclability and reduced carbon footprint Color and Special Effects Weight reduction Enhanced product aesthetics High heat resistance PET Bottling Technology 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2009 2014 2019 Asia Pacific North America Latin America Western Europe Eastern Europe Middle East and Africa Global PET Packaging Growth 2009-2019 Source: Euromonitor retail off-trade consumption (PET bottles & jars, home care, personal care, food & non-alcoholic beverages) B ill io n un its 5% CAGR PolyOne Corporation Page 29 • Includes formulation and consultative services to assist manufacturers and brand owners in positively identifying their finished goods • Protects brand equity & consumer welfare • Reduces exposure to unwarranted recall expenses • Secures supply chain integrity – support for safe expansion into new geographies Authentication Technology PolyOne Corporation Page 30 • Color harmonization across 15 unique color-and-polymer combinations • Eliminated need for multiple pre- colored materials • Reduced Land Rover’s working capital 2015 Range Rover Evoque Interior PolyOne Corporation Page 31 • Reduced health and environmental impact • System cost reduction • Radiation-shielding performance • Parts consolidation • Design freedom CT Scanner PolyOne Corporation Page 32 Metal Replacement Solutions • Replaces metal in LED lighting • Extends LED durability and life span eliminating hot spots • Greater design flexibility with fewer parts • Weight reduction • Simplifies manufacturing and lowers total production cost PolyOne Corporation Page 33 Next Generation Solar Charger • Ginkgo Solar Tree charger utilizing our unique reSound™ material • reSound™ is a durable material consisting of 50% bio-derived plastic and 50% traditional petroleum-based plastic • Use of reSound™ reduced the carbon footprint for this product by 35% • reSound™ Is classified as a PolyOne Sustainable SolutionSM PolyOne Sustainable SolutionSM PolyOne Corporation Page 34 High-Barrier Packaging Containers • Capability to extrude up to 13 layers • Strong oxygen and moisture vapor transmission protection • Can be made symmetrical or asymmetrical to meet customized needs of broad variety of applications • Barrier protection and superior organoleptic properties PolyOne Corporation Page 35 Aerospace Applications • Leading provider of specialty materials for the aerospace industry • Typical applications Mil-spec aircraft windows, canopies, windscreens, instrument panels, wingtip lenses Interior – gallery furnishings, tray tables, arm rests, trim strips, joint/edge coverings • Benefits: High impact strength Resistant to UV rays Flame and smoke compliance Easy to clean with aggressive cleaners; anti-microbial grades available Range of sizes, thicknesses, colors, etc. 1 Schedule I Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with U.S.
Platform operating income mix percentage 2005* 2006* 2007* 2008* 2009* 2010* 2011 2012 2013 2014 2015 Q1 Global Color, Additives and Inks $ 4.3 $ 8.9 $ 25.7 $ 28.1 $ 25.2 $ 37.7 $ 50.2 $ 75.3 $ 104.0 $ 124.9 $ 33.8 Global Specialty Engineered Materials 0.4 3.9 4.9 17.6 20.6 49.7 45.9 47.0 57.2 72.4 23.1 Designed Structures and Solutions - - - - - - - - 33.4 45.1 3.2 Specialty Platform $ 4.7 $ 12.8 $ 30.6 $ 45.7 $ 45.8 $ 87.4 $ 96.1 $ 122.3 $ 194.6 $ 242.4 $ 60.1 Performance Products and Solutions 75.7 64.2 65.8 31.3 33.1 54.0 27.7 38.8 56.0 63.1 11.5 Distribution 19.5 19.2 22.1 28.1 24.8 42.0 56.0 66.0 63.3 68.2 15.7 Joint ventures 91.9 102.9 34.8 28.6 25.5 18.9 5.0 - - - - Corporate and eliminations (51.5) 34.5 (73.3) (425.1) 7.9 (27.7) 18.2 (89.6) (82.4) (218.6) (17.2) Operating income (loss) GAAP $ 140.3 $ 233.6 $ 80.0 $ (291.4) $ 137.1 $ 174.6 $ 203.0 $ 137.5 $ 231.5 $ 155.1 $ 70.1 Less: Corporate operating expense 51.5 (34.5) 73.3 425.1 (7.9) 27.7 (18.2) 89.6 82.4 218.6 17.2 Operating income excluding Corporate $ 191.8 $ 199.1 $ 153.3 $ 133.7 $ 129.2 $ 202.3 $ 184.8 $ 227.1 $ 313.9 $ 373.7 $ 87.3 Specialty platform operating mix percentage 2% 6% 20% 34% 35% 43% 52% 54% 62% 65% 69% * Historical results have not been restated for the Resin business divestiture or the related resegmentation. 2 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 Adjusted EPS 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 Net income attributable to PolyOne common shareholders $ 20.1 $ 106.0 $ 15.3 $ 11.2 $ 29.4 $ 30.2 Joint venture equity earnings, after tax (0.5) (3.7) - - - - Special items, after tax(1) (0.3) (79.8) 6.1 17.2 14.1 5.5 Tax adjustments(2) (3.5) (1.5) 0.1 0.5 (1.6) 5.9 Adjusted net income $ 15.8 $ 21.0 $ 21.5 $ 28.9 $ 41.9 $ 41.6 Diluted shares 95.3 96.4 90.7 92.8 95.7 90.1 Adjusted EPS $ 0.17 $ 0.22 $ 0.24 $ 0.31 $ 0.44 $ 0.46 * 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.
Appendix Q1 2015 Financial Highlights At a Glance�Global Color, Additives and Inks At a Glance�Global Specialty Engineered Materials At a Glance�Designed Structures and Solutions At a Glance�Performance Products and Solutions At a Glance�Distribution Plastics: Key to Future Sustainable Development Commitment to Operational Excellence Application Examples Slide Number 28 Authentication Technology 2015 Range Rover Evoque Interior Slide Number 31 Metal Replacement Solutions Next Generation Solar Charger High-Barrier Packaging Containers Aerospace Applications
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Jefferies%2520Industrials%2520Conference%25202015.pdf
Addressable market exceeds $40 billion Strong performance demonstrates that our strategy and execution are working Megatrends and emerging opportunities align with our strengths Innovation and services provide differentiation, incremental pricing power, and competitive advantage Strong and proven management team driving growth and performance PolyOne Corporation Page 18 Appendix PolyOne Corporation Page 19 $0.19 $0.26 $0.30 $0.37 $0.51 $0.57 $0.00 $0.25 $0.50 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 Adjusted EPS Q2 2015 Financial Highlights Global Color Additives & Inks operating margin reaches record level of 18.2% Global Specialty Engineered Materials operating margin grew 240 basis points year-over-year to 14.4% Second quarter adjusted EPS has grown on average 25% per year since 2010 $13 $14 $24 $31 $38 $40 $10 $30 $50 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 GCAI Operating Profit $12 $13 $13 $15 $19 $20 $10 $14 $18 $22 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 GSEM Operating Profit Note: $ in millions, except per share data PolyOne Corporation Page 20 Appliances 2% Building & Construction 12% Consumer 7% Electrical & Electronics 1% Healthcare 6% Industrial 14% Packaging 31% Textiles 7% Transportation 8% Wire & Cable 12% 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 17.2% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD 2015 2020 Operating Income % of Sales At a Glance Global Color, Additives and Inks 2014 Revenues: $0.9 Billion Solutions Expanding Profits 2014 Revenue by Industry Segment 14.7% Platinum Vision United States 44% Europe 36% Canada 2% Asia 12% Latin America 6% PolyOne Corporation Page 21 Appliances 4% Building & Construction 3% Consumer 18% Electrical & Electronics 16% Healthcare 12% Industrial 8% Packaging 5% Transportation 20% Wire & Cable 12% At a Glance Global Specialty Engineered Materials 2014 Revenues: $0.6 Billion Solutions 2014 Revenue by Industry Segment Expanding Profits 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 15.3% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD 2015 2020 Operating Income % of Sales Platinum Vision 12.1% United States 44% Europe 33% Canada 2% Asia 19% Latin America 2% PolyOne Corporation Page 22 Appliances 2% Building & Construction 8% Consumer 5% Healthcare 6% Industrial 23% Packaging 27% Transportation 30% United States 96% Canada 4% At a Glance Designed Structures and Solutions Solutions 2014 Revenues: $0.6 Billion Expanding Profits 2014 Revenue by Industry Segment 1.4% 5.6% 7.3% 3.3% 12-14% 2012 2013 2014 YTD 2015 2020 Operating Income % of Sales Platinum Vision PolyOne Corporation Page 23 Appliances 8% Building & Construction 33% Consumer 5% Electrical & Electronics 3% Healthcare 1% Industrial 11% Packaging 5% Transportation 18% Wire & Cable 16% 5.5% 6.9% 3.8% 3.6% 5.5% 4.3% 6.3% 7.2% 7.6% 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD 2015 2020 Operating Income % of Sales At a Glance Performance Products and Solutions Solutions Expanding Profits 2014 Revenues: $0.8 Billion 10-12% Platinum Vision 2014 Revenue by Industry Segment 7.7% United States 80% Canada 14% Asia 2% Latin America 4% PolyOne Corporation Page 24 Appliances 6% Building & Construction 5% Consumer 13% Electrical & Electronics 6% Healthcare 23% Industrial 15% Packaging 4% Transportation 25% Wire & Cable 3% 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% 6.4% 5.9% 6.5% 6.5-7.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD 2015 2020 Operating Income % of Sales 15% 52% 2006 Q2 2015 At a Glance Distribution Key Suppliers 2014 Revenues: $1.1 Billion ROIC Expanding Profits 6.1% Platinum Vision http://www.polyone.com/Pages/VariationRoot.aspx PolyOne Corporation Page 25 2 lbs Plastic = 3 lbs aluminum or 8 lbs steel or 27 lbs glass 33% less material by weight than aluminum 75% less material by weight than steel 93% less material by weight than glass Requires 91% less energy to recycle a pound of plastic versus a pound of paper Source: SPI: Sustainability and the Plastics Industry Plastics: Key to Future Sustainable Development PolyOne Corporation Page 26 Commitment to Operational Excellence 81% 93% 2006 2014 16.2% 9.9% 2006 2014 On-Time Delivery Working Capital % of Sales 5% 43% 2006 2014 Percent of Associates Trained in LSS Five consecutive years – CFO Magazine Best Working Capital Management in the chemical industry World’s Best Business Process Excellence Program in 2012* 114 trained Black Belts 222 trained Green Belts 140 trained Kaizen Leaders World’s Best Start-up Program for Lean Six Sigma Deployment in 2009* *Both awards received from International Quality and Productivity Center PolyOne Corporation Page 27 Application Examples PolyOne Corporation Page 28 $1.5 billion attractive, growing market Additives improve performance and reduce cost through light-weighting, reduced waste, faster cycle times, and extended shelf life of finished product Aligned with megatrend of protecting the environment: Sustainability benefits include lower package weight and improved recyclability of package at end of use Market Opportunity Leading Global Supplier of Additives In Growing PET Market Shelf-life extension Greater product consistency Recyclability and reduced carbon footprint Color and Special Effects Weight reduction Enhanced product aesthetics High heat resistance PET Bottling Technology 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2009 2014 2019 Asia Pacific North America Latin America Western Europe Eastern Europe Middle East and Africa Global PET Packaging Growth 2009-2019 Source: Euromonitor retail off-trade consumption (PET bottles & jars, home care, personal care, food & non-alcoholic beverages) B ill io n un its 5% CAGR PolyOne Corporation Page 29 • Includes formulation and consultative services to assist manufacturers and brand owners in positively identifying their finished goods • Protects brand equity & consumer welfare • Reduces exposure to unwarranted recall expenses • Secures supply chain integrity – support for safe expansion into new geographies Authentication Technology PolyOne Corporation Page 30 • Color harmonization across 15 unique color-and-polymer combinations • Eliminated need for multiple pre- colored materials • Reduced Land Rover’s working capital 2015 Range Rover Evoque Interior PolyOne Corporation Page 31 • Reduced health and environmental impact • System cost reduction • Radiation-shielding performance • Parts consolidation • Design freedom CT Scanner PolyOne Corporation Page 32 Metal Replacement Solutions • Replaces metal in LED lighting • Extends LED durability and life span eliminating hot spots • Greater design flexibility with fewer parts • Weight reduction • Simplifies manufacturing and lowers total production cost PolyOne Corporation Page 33 Next Generation Solar Charger • Ginkgo Solar Tree charger utilizing our unique reSound™ material • reSound™ is a durable material consisting of 50% bio-derived plastic and 50% traditional petroleum-based plastic • Use of reSound™ reduced the carbon footprint for this product by 35% • reSound™ Is classified as a PolyOne Sustainable SolutionSM PolyOne Sustainable SolutionSM PolyOne Corporation Page 34 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 PolyOne Corporation Page 35 Aerospace Applications • Leading provider of specialty materials for the aerospace industry • Typical applications Mil-spec aircraft windows, canopies, windscreens, instrument panels, wingtip lenses Interior – gallery furnishings, tray tables, arm rests, trim strips, joint/edge coverings • Benefits: High impact strength Resistant to UV rays Flame and smoke compliance Easy to clean with aggressive cleaners; anti-microbial grades available Range of sizes, thicknesses, colors, etc. 1 Schedule I Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with U.S.
Platform operating income mix percentage 2005* 2006* 2007* 2008* 2009* 2010* 2011 2012 2013 2014 2015 YTD Global Color, Additives and Inks $ 4.3 $ 8.9 $ 25.7 $ 28.1 $ 25.2 $ 37.7 $ 50.2 $ 75.3 $ 104.0 $ 124.9 $ 73.4 Global Specialty Engineered Materials 0.4 3.9 4.9 17.6 20.6 49.7 45.9 47.0 57.2 72.4 43.2 Designed Structures and Solutions - - - - - - - - 33.4 45.1 7.7 Specialty Platform $ 4.7 $ 12.8 $ 30.6 $ 45.7 $ 45.8 $ 87.4 $ 96.1 $ 122.3 $ 194.6 $ 242.4 $ 124.3 Performance Products and Solutions 75.7 64.2 65.8 31.3 33.1 54.0 27.7 38.8 56.0 63.1 27.8 Distribution 19.5 19.2 22.1 28.1 24.8 42.0 56.0 66.0 63.3 68.2 34.8 Joint ventures 91.9 102.9 34.8 28.6 25.5 18.9 5.0 - - - - Corporate and eliminations (51.5) 34.5 (73.3) (425.1) 7.9 (27.7) 18.2 (89.6) (82.4) (218.6) (36.5) Operating income (loss) GAAP $ 140.3 $ 233.6 $ 80.0 $ (291.4) $ 137.1 $ 174.6 $ 203.0 $ 137.5 $ 231.5 $ 155.1 $ 150.4 Less: Corporate operating expense 51.5 (34.5) 73.3 425.1 (7.9) 27.7 (18.2) 89.6 82.4 218.6 36.5 Operating income excluding Corporate $ 191.8 $ 199.1 $ 153.3 $ 133.7 $ 129.2 $ 202.3 $ 184.8 $ 227.1 $ 313.9 $ 373.7 $ 186.9 Specialty platform operating mix percentage 2% 6% 20% 34% 35% 43% 52% 54% 62% 65% 67% * Historical results have not been restated for the Resin business divestiture or the related resegmentation. 2 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 Adjusted EPS 2010 Q2 2011 Q2 2012 Q2 2013 Q2 2014 Q2 2015 Q2 Net income attributable to PolyOne common shareholders $ 44.7 $ 23.1 $ 18.4 $ 38.6 $ 30.9 $ 66.8 Joint venture equity earnings, after tax (4.5) - - - - - Special items, after tax(1) (9.0) 0.9 8.0 (2.2) 22.6 8.0 Tax adjustments(2) (13.1) 0.4 0.9 0.2 (5.2) (23.9) Adjusted net income $ 18.1 $ 24.4 $ 27.3 $ 36.6 $ 48.3 $ 50.9 Diluted shares 96.3 95.5 90.7 99.1 94.3 89.8 Adjusted EPS $ 0.19 $ 0.26 $ 0.30 $ 0.37 $ 0.51 $ 0.57 * 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.
Appendix Q2 2015 Financial Highlights At a Glance�Global Color, Additives and Inks At a Glance�Global Specialty Engineered Materials At a Glance�Designed Structures and Solutions At a Glance�Performance Products and Solutions At a Glance�Distribution Plastics: Key to Future Sustainable Development Commitment to Operational Excellence Application Examples Slide Number 28 Authentication Technology 2015 Range Rover Evoque Interior Slide Number 31 Metal Replacement Solutions Next Generation Solar Charger High-Barrier Packaging Containers Aerospace Applications Jefferies - August 11 2015 r6 Jefferies - August 11 2015
https://www.avient.com/sites/default/files/resources/Wells%2520Fargo%2520Conference%2520-%2520IR%2520Presentation%25205-6-2015%2520-%2520wNon%2520GAAP%2520and%2520Appendix.pdf
Addressable market exceeds $40 billion Strong performance demonstrates that our strategy and execution are working Megatrends and emerging opportunities align with our strengths Innovation and services provide differentiation, incremental pricing power, and competitive advantage Strong and proven management team driving growth and performance PolyOne Corporation Page 17 Appendix PolyOne Corporation Page 18 $0.44 $0.46 $0.40 $0.45 $0.50 Q1 2014 Q1 2015 Adjusted EPS $30 $34 $25 $30 $35 Q1 2014 Q1 2015 GCAI Operating Income (in millions) $18 $23 $15 $20 $25 Q1 2014 Q1 2015 GSEM Operating Income (in millions) Q1 2015 Financial Highlights Global Specialty Engineered Materials’ operating margin of 16.3% above the 2015 target Global Color Additives and Inks’ operating margin grew to 16.2% Adjusted EPS growth despite unfavorable foreign exchange and market dynamics • Ex. currency, EPS grew 10.5% +5% +26% +11% PolyOne Corporation Page 19 Appliances 2% Building & Construction 12% Consumer 7% Electrical & Electronics 1% Healthcare 6% Industrial 14% Packaging 31% Textiles 7% Transportation 8% Wire & Cable 12% 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 12-16% 16.2% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2015 Operating Income % of Sales At a Glance Global Color, Additives and Inks 2014 Revenues: $0.9 Billion Solutions Expanding Profits 2014 Revenue by Industry Segment 14.7% Target United States 44% Europe 36% Canada 2% Asia 12% Latin America 6% PolyOne Corporation Page 20 Appliances 4% Building & Construction 3% Consumer 18% Electrical & Electronics 16% Healthcare 12% Industrial 8% Packaging 5% Transportation 20% Wire & Cable 12% At a Glance Global Specialty Engineered Materials 2014 Revenues: $0.6 Billion Solutions 2014 Revenue by Industry Segment Expanding Profits 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 12-16% 16.3% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2015 Operating Income % of Sales Target 12.1% United States 44% Europe 33% Canada 2% Asia 19% Latin America 2% PolyOne Corporation Page 21 Appliances 2% Building & Construction 8% Consumer 5% Healthcare 6% Industrial 23% Packaging 27% Transportation 30% United States 96% Canada 4% At a Glance Designed Structures and Solutions Solutions 2014 Revenues: $0.6 Billion Expanding Profits 2014 Revenue by Industry Segment 1.4% 5.6% 7.3% 2.7% 8-10% 2012 2013 2014 Q1 2015 2015 Operating Income % of Sales Target PolyOne Corporation Page 22 Appliances 8% Building & Construction 33% Consumer 5% Electrical & Electronics 3% Healthcare 1% Industrial 11% Packaging 5% Transportation 18% Wire & Cable 16% 5.5% 6.9% 3.8% 3.6% 5.5% 4.3% 6.3% 7.2% 6.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2015 Operating Income % of Sales At a Glance Performance Products and Solutions Solutions Expanding Profits 2014 Revenues: $0.8 Billion 9-12% Target 2014 Revenue by Industry Segment 7.7% United States 80% Canada 14% Asia 2% Latin America 4% PolyOne Corporation Page 23 Appliances 6% Building & Construction 5% Consumer 13% Electrical & Electronics 6% Healthcare 23% Industrial 15% Packaging 4% Transportation 25% Wire & Cable 3% 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% 6.4% 5.9% 5.9% 6-7.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2015 Operating Income % of Sales 15% 52% 2006 2014 At a Glance Distribution Key Suppliers 2014 Revenues: $1.1 Billion ROIC Expanding Profits 6.1% Target http://www.polyone.com/Pages/VariationRoot.aspx PolyOne Corporation Page 24 2 lbs Plastic = 3 lbs aluminum or 8 lbs steel or 27 lbs glass 33% less material by weight than aluminum 75% less material by weight than steel 93% less material by weight than glass Requires 91% less energy to recycle a pound of plastic versus a pound of paper Source: SPI: Sustainability and the Plastics Industry Plastics: Key to Future Sustainable Development PolyOne Corporation Page 25 Commitment to Operational Excellence 81% 93% 2006 2014 16.2% 9.9% 2006 2014 On-Time Delivery Working Capital % of Sales 5% 43% 2006 2014 Percent of Associates Trained in LSS Four consecutive years – CFO Magazine Best Working Capital Management in the chemical industry World’s Best Business Process Excellence Program in 2012* 103 trained Black Belts 247 trained Green Belts 127 trained Kaizen Leaders World’s Best Start-up Program for Lean Six Sigma Deployment in 2009* *Both awards received from International Quality and Productivity Center PolyOne Corporation Page 26 Application Examples PolyOne Corporation Page 27 $1.5 billion attractive, growing market Additives improve performance and reduce cost through light-weighting, reduced waste, faster cycle times, and extended shelf life of finished product Aligned with megatrend of protecting the environment: Sustainability benefits include lower package weight and improved recyclability of package at end of use Market Opportunity Leading Global Supplier of Additives In Growing PET Market Shelf-life extension Greater product consistency Recyclability and reduced carbon footprint Color and Special Effects Weight reduction Enhanced product aesthetics High heat resistance PET Bottling Technology 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2009 2014 2019 Asia Pacific North America Latin America Western Europe Eastern Europe Middle East and Africa Global PET Packaging Growth 2009-2019 Source: Euromonitor retail off-trade consumption (PET bottles & jars, home care, personal care, food & non-alcoholic beverages) B ill io n un its 5% CAGR PolyOne Corporation Page 28 • Includes formulation and consultative services to assist manufacturers and brand owners in positively identifying their finished goods • Protects brand equity & consumer welfare • Reduces exposure to unwarranted recall expenses • Secures supply chain integrity – support for safe expansion into new geographies Authentication Technology PolyOne Corporation Page 29 • Color harmonization across 15 unique color-and-polymer combinations • Eliminated need for multiple pre- colored materials • Reduced Land Rover’s working capital 2015 Range Rover Evoque Interior PolyOne Corporation Page 30 • Reduced health and environmental impact • System cost reduction • Radiation-shielding performance • Parts consolidation • Design freedom CT Scanner PolyOne Corporation Page 31 Metal Replacement Solutions • Replaces metal in LED lighting • Extends LED durability and life span eliminating hot spots • Greater design flexibility with fewer parts • Weight reduction • Simplifies manufacturing and lowers total production cost PolyOne Corporation Page 32 Next Generation Solar Charger • Ginkgo Solar Tree charger utilizing our unique reSound™ material • reSound™ is a durable material consisting of 50% bio-derived plastic and 50% traditional petroleum-based plastic • Use of reSound™ reduced the carbon footprint for this product by 35% • reSound™ Is classified as a PolyOne Sustainable SolutionSM PolyOne Sustainable SolutionSM PolyOne Corporation Page 33 High-Barrier Packaging Containers • Capability to extrude up to 13 layers • Strong oxygen and moisture vapor transmission protection • Can be made symmetrical or asymmetrical to meet customized needs of broad variety of applications • Barrier protection and superior organoleptic properties PolyOne Corporation Page 34 Aerospace Applications • Leading provider of specialty materials for the aerospace industry • Typical applications Mil-spec aircraft windows, canopies, windscreens, instrument panels, wingtip lenses Interior – gallery furnishings, tray tables, arm rests, trim strips, joint/edge coverings • Benefits: High impact strength Resistant to UV rays Flame and smoke compliance Easy to clean with aggressive cleaners; anti-microbial grades available Range of sizes, thicknesses, colors, etc. 1 Schedule I Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with U.S.
Platform operating income mix percentage 2005* 2006* 2007* 2008* 2009* 2010* 2011 2012 2013 2014 2015 Q1 Global Color, Additives and Inks $ 4.3 $ 8.9 $ 25.7 $ 28.1 $ 25.2 $ 37.7 $ 50.2 $ 75.3 $ 104.0 $ 124.9 $ 33.8 Global Specialty Engineered Materials 0.4 3.9 4.9 17.6 20.6 49.7 45.9 47.0 57.2 72.4 23.1 Designed Structures and Solutions - - - - - - - - 33.4 45.1 3.2 Specialty Platform $ 4.7 $ 12.8 $ 30.6 $ 45.7 $ 45.8 $ 87.4 $ 96.1 $ 122.3 $ 194.6 $ 242.4 $ 60.1 Performance Products and Solutions 75.7 64.2 65.8 31.3 33.1 54.0 27.7 38.8 56.0 63.1 11.5 Distribution 19.5 19.2 22.1 28.1 24.8 42.0 56.0 66.0 63.3 68.2 15.7 Joint ventures 91.9 102.9 34.8 28.6 25.5 18.9 5.0 - - - - Corporate and eliminations (51.5) 34.5 (73.3) (425.1) 7.9 (27.7) 18.2 (89.6) (82.4) (218.6) (17.2) Operating income (loss) GAAP $ 140.3 $ 233.6 $ 80.0 $ (291.4) $ 137.1 $ 174.6 $ 203.0 $ 137.5 $ 231.5 $ 155.1 $ 70.1 Less: Corporate operating expense 51.5 (34.5) 73.3 425.1 (7.9) 27.7 (18.2) 89.6 82.4 218.6 17.2 Operating income excluding Corporate $ 191.8 $ 199.1 $ 153.3 $ 133.7 $ 129.2 $ 202.3 $ 184.8 $ 227.1 $ 313.9 $ 373.7 $ 87.3 Specialty platform operating mix percentage 2% 6% 20% 34% 35% 43% 52% 54% 62% 65% 69% * Historical results have not been restated for the Resin business divestiture or the related resegmentation. 2 Adjusted EPS 2006Y* 2007Y* 2008Y* 2009Y* 2010Y 2011Y 2012Y 2013Y 2014Y 2015 Q1 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 $ 30.2 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 5.5 Tax adjustments(2) (30.0) (30.7) 147.2 (44.9) (88.3) (42.3) 0.5 2.2 (10.5) 5.9 Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 41.6 Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8 96.5 93.5 90.1 Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 0.46 * 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.
Appendix Q1 2015 Financial Highlights At a Glance�Global Color, Additives and Inks At a Glance�Global Specialty Engineered Materials At a Glance�Designed Structures and Solutions At a Glance�Performance Products and Solutions At a Glance�Distribution Plastics: Key to Future Sustainable Development Commitment to Operational Excellence Application Examples Slide Number 27 Authentication Technology 2015 Range Rover Evoque Interior Slide Number 30 Metal Replacement Solutions Next Generation Solar Charger High-Barrier Packaging Containers Aerospace Applications Wells Fargo - May 6 2015 r63 Wells Fargo - May 6 2015
https://www.avient.com/news/new-black-colorants-available-avient-help-achieve-high-jetness-polyester-textiles
CLEVELAND, – November 28, 2023 – Avient Corporation, a leading provider of specialized and sustainable material solutions and services, today announced it is adding new black colorants to its Renol™ Fiber Colorants portfolio.
Satisfying all of these needs for deep black colorants in the textile industry has proven to be challenging over the past few years as certain color technologies could meet only one or two but not all requirements,” said Mauro Dallavalle, senior marketing manager, Color & Additives Fibers at Avient.
The new deep black colorants are part of the Renol Fiber Colorants portfolio, a range of color concentrates specially formulated for dyeing synthetic yarns using the spin-dyeing (dope-dying) process.
https://www.avient.com/knowledge-base/article/gain-colorful-insight-ski-boot-market
Discover how a bespoke ColorWorks™ color-finding project helped gain the competitive edge in the ski boot market.
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Gain a Colorful Insight into the Ski Boot Market
Five colors were presented and each was named for a well-known ski resort.
https://www.avient.com/knowledge-base/article/gain-colorful-insight-ski-boot-market?rtype[]=1164
Discover how a bespoke ColorWorks™ color-finding project helped gain the competitive edge in the ski boot market.
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Gain a Colorful Insight into the Ski Boot Market
Five colors were presented and each was named for a well-known ski resort.
https://www.avient.com/news/new-super-black-textile-colorants-meet-global-demands-intense-deep-effects
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New Super Black Textile Colorants Meet Global Demands for Intense, Deep Effects
SHANGHAI – December 10, 2018 – PolyOne today launched a new line of super black textile colorants with outstanding darkness, superior color fastness and great spinning performance for PA and PET fibers.
PHOTO CAPTION: PolyOne launches new Line of super black colorants with intense dark colors and lower dosage rates.