https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Goldman%2520Sachs%2520Basic%2520Materials%2520Conference%2520-%2520May%25202016.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
Our ability to realize anticipated savings and operational benefits from the realignment of assets, including the closure of manufacturing facilities;
The timing of closings and shifts of production to new facilities related to asset realignments and any unforeseen loss of customers and/or disruptions of
service or quality caused by such closings and/or production shifts;
Separation and severance amounts that differ from original estimates;
Amounts for non-cash charges related to asset write-offs and accelerated depreciation realignments of property, plant and equipment, that differ from
original estimates;
Our ability to identify and evaluate acquisition targets and consummate acquisitions;
The ability to successfully integrate acquired companies into our operations, retain the management teams of acquired companies, retain relationships
with customers of acquired companies, and achieve the expected results of such acquisitions, including whether such businesses will be accretive to our
earnings;
Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and
cost of credit in the future;
The financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate
liquidity) to maintain their credit availability;
The speed and extent of an economic recovery, including the recovery of the housing market;
Our ability to achieve new business gains;
The effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks;
Changes in polymer consumption growth rates and laws and regulations regarding the disposal of plastic in jurisdictions where we conduct business;
Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online;
Fluctuations in raw material prices, quality and supply and in energy prices and supply; production outages or material costs associated with scheduled
or unscheduled maintenance programs;
Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters;
An inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital
reductions, cost reductions and employee productivity goals;
An inability to raise or sustain prices for products or services;
An inability to maintain appropriate relations with unions and employees;
Our ability to continue to pay cash dividends;
The amount and timing of repurchases of our common shares, if any; and
Other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and
changes in the rate of inflation.
The above list of factors is not exhaustive.
We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
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 – 2015 2016 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 $1.96
• 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
• 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
Confirmation of Our Strategy
The World’s Premier Provider of Specialized
Polymer Materials, Services and Solutions
Specialization Globalization
Operational
Excellence
Commercial
Excellence
Associates
PolyOne Corporation Page 6
26 Consecutive Quarters of EPS Growth
PolyOne Corporation Page 7
2015 Revenues: $3.4 Billion
End Markets
2015 Revenues: $3.4 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 2015
Adjusted EPS
66%
Building &
10%Electrical &
Textiles
$1.96
Distribution
29%
PP&S
CAI
23%
SEM
15%DSS
PolyOne Corporation Page 8
Old
PolyOne
*Operating Income excludes corporate charges and special items
43%
65%
0%
40%
80%
2005 2010 2015 2020
%
o
f O
pe
ra
tin
g
In
co
m
e*
JV's Performance Products & Solutions Distribution Specialty
80%+
Specialty OI $5M $87M $229M
Mix Shift Highlights Specialty Transformation
Transformation
2020
PolyOne Corporation Page 9
Color and Engineered Materials at the
Heart of Specialty Transformation
OPERATING MARGIN
1.7%
4.6% 5.1% 5.5%
7.2%
8.1%
12.2%
16.7% 17.0%
COLOR, ADDITIVES
AND INKS
1.1% 1.3%
3.4%
5.1%
9.6%
8.0%
8.6%
9.3%
12.1%
16.6%
SPECIALTY
ENGINEERED MATERIALS
PolyOne Corporation Page 10
2006 1Q 2016 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income %
Specialty:
Color, Additives & Inks 1.7% 17.0% 20%+
Specialty Engineered Materials 1.1% 16.6% 20%+
Designed Structures & Solutions N/A 2.5% (TTM) 8 – 10%
Performance Products &
Solutions 5.5% 11.9% 12 – 14%
Distribution 2.6% 6.5% 6.5 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 61% 80%+
3) ROIC* 5.0% 12.0% 15%
4) Adjusted EPS Growth N/A 22% Double Digit
Expansion
Proof of Performance & 2020 Goals
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
PolyOne Corporation Page 11
Therma-Tech™ & Sheet
GEON™ Vinyl
Polymer ColorantsTherma-Tech™
TPE’s & Film
TPE + OnForce™
Gravi-Tech™
Page 11
Film
Target End Markets… Healthcare
PolyOne Corporation Page 12
TPE + OnForce
OnForce
TPE Vibration Dampening
(SEM/GLS)
TPE & Film
(SEM + DSS)
Polymer Colorants
(CAI)
Thermatech
Thermoplastic Elastomers
TPE + OnForce
OnForce
Thermoplastic Elastomers
Polymer Colorants
(CAI)
Sheet
(DSS)
Source: Outdoor Industry Association
Target End Markets… Outdoor High Performance
PolyOne Corporation Page 13
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
PolyOne Corporation Page 14
Target End Markets… Packaging
PreservaPak™
OnColor™
Smart Batch™
VersaFlex™
TPE Cap Liner
ColorMatrix™
Amosorb™
Oxygen Scavenger
ColorMatrix™
Ultimate™ UV
Light Barrier
OnCap™
Laser Marking
Additives
PolyOne Corporation Page 15
Innovation Drives Earnings Growth
*Specialty Platform revenue from products introduced in last five years
$53
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
34%
CAI & SEM
Gross Margin
43%
Target ≥ 35%
Innovation Pipeline Potential
PolyOne Corporation Page 16
2,883
2,414
Volume
(lbs in millions)
-16%
$103
$192
Commercial, R&D
and Marketing
Spending ($M)
+86%
$303
$721
Adjusted
Gross Profit ($M)
+138%
Ours is Not a Cost Cutting Story
PolyOne Corporation Page 17
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 18
Customer First Through World-Class Service
Strengthening relationships through:
Providing LSS services to small/medium sized customers
Providing training in Customer Centric Selling Skills with customers
World’s Best Business
Process Excellence
Program in 2012*
World’s Best Start-up
program for Lean Six Sigma
Deployment in 2009*
81%
93%
16.2%
On-Time Delivery
Working Capital % of Sales
52% of associates trained in LSS
Five consecutive years – CFO Magazine Best Working
Capital Management in the chemical industry
Commitment to Operational Excellence
PolyOne Corporation Page 19
30%
40%
50%
70%
80%
90%
2008 1Q 2016
Pension Funding**
As of March 31, 2016
Debt Maturities & Pension Funding
Net Debt / Adjusted EBITDA*= 2.5x
** includes US-qualified pension plans only*TTM 3/31/2016
$550
$600
$200
$300
$400
$500
$600
$700
$800
2022 2023
Debt Maturities
As of March 31, 2016
($ millions)
Coupon Rate: 3.750% 5.250%
PolyOne Corporation Page 20
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
1.5 million shares in
Q1 2016
Repurchased 17.3
million shares since
early 2013
10.0 million shares are
available for
repurchase under the
current authorization
$0.24
PolyOne Corporation Page 21
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
Adjusted EPS is calculated as follows:
Adjusted EPS 2006Y* 2007Y* 2008Y* 2009Y* 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y
Net income (loss) attributable to PolyOne common
shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6
Joint venture equity earnings, after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) - - - -
Special items, after tax(1) (51.2) 10.7 457.2 (75.9) (72.5) (72.8) 36.2 32.6 90.5 28.9
Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5
Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8 96.5 93.5 88.7
Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96
Adjusted EPS Q1 2009* Q2 2009* Q3 2009* Q4 2009* Q1 2010 Q2 2010 Q3 2010 Q4 2010
Net income attributable to PolyOne common shareholders $ 3.3 $ 1.3 $ 51.3 $ 50.8 $ 20.1 $ 44.7 $ 0.1 $ 87.6
Joint venture equity earnings, after tax (8.2) (5.8) (3.0) (2.0) (0.5) (4.5) (6.2) (3.5)
Special items, after tax(1) (10.2) 9.2 (36.9) (38.0) (3.8) (22.1) 25.4 (72.0)
Adjusted net (loss) income $ (15.1) $ 4.7 $ 11.4 $ 10.8 $ 15.8 $ 18.1 $ 19.3 $ 12.1
Diluted shares 92.2 93.5 93.9 94.4 95.3 96.3 96.3 97.4
Adjusted EPS $ (0.16) $ 0.05 $ 0.12 $ 0.11 $ 0.17 $ 0.19 $ 0.20 $ 0.12
Adjusted EPS Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
Net income attributable to PolyOne common shareholders $ 106.0 $ 23.1 $ 16.0 $ 8.3 $ 15.3 $ 18.4 $ 19.4 $ 0.2
Joint venture equity earnings, after tax (3.7) - - - - - - -
Special items, after tax(1) (81.3) 1.3 2.8 4.4 6.2 8.9 5.4 15.7
Adjusted net income $ 21.0 $ 24.4 $ 18.8 $ 12.7 $ 21.5 $ 27.3 $ 24.8 $ 15.9
Diluted shares 96.4 95.5 94.0 91.9 90.7 90.7 90.2 90.5
Adjusted EPS $ 0.22 $ 0.26 $ 0.20 $ 0.14 $ 0.24 $ 0.30 $ 0.28 $ 0.18
2
Adjusted EPS Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
Net income (loss) attributable to PolyOne common
shareholders $ 11.2 $ 38.6 $ 23.2 $ 21.0 $ 29.4 $ 30.9 $ 32.3 $ (14.6)
Special items, after tax(1) 17.7 (2.0) 12.3 4.6 12.5 17.4 13.1 47.5
Adjusted net income $ 28.9 $ 36.6 $ 35.5 $ 25.6 $ 41.9 $ 48.3 $ 45.4 $ 32.9
Diluted shares 92.8 99.1 98.1 97.2 95.7 94.3 93.1 91.3
Adjusted EPS $ 0.31 $ 0.37 $ 0.36 $ 0.26 $ 0.44 $ 0.51 $ 0.49 $ 0.36
Adjusted EPS Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016
Net income attributable to PolyOne common shareholders $ 30.2 $ 66.8 $ 44.5 $ 3.1 $ 39.1
Special items, after tax(1) 11.4 (15.9) 3.0 30.4 9.1
Adjusted net income $ 41.6 $ 50.9 $ 47.5 $ 33.5 $ 48.2
Diluted shares 90.1 89.8 88.4 86.6 85.5
Adjusted EPS $ 0.46 $ 0.57 $ 0.54 $ 0.39 $ 0.56
Adjusted operating margin is calculated as follows:
Adjusted operating margin Q1 2009* Q2 2009* Q3 2009* Q4 2009* YTD 2009* Q1 2010 Q2 2010 Q3 2010 Q4 2010 YTD 2010
Operating Income $ 9.9 $ 17.1 $ 57.9 $ 52.2 $ 137.1 $ 32.3 $ 58.6 $ 42.0 $ 26.3 $ 159.2
Special items (1) (1.3) 4.6 (27.5) (24.5) (48.7) - (14.5) 5.5 4.2 (4.8)
Joint venture equity earnings (12.8) (9.0) (4.8) (3.1) (29.7) (0.8) (7.1) (9.7) (5.5) (23.1)
Adjusted operating (loss) income $ (4.2) $ 12.7 $ 25.6 $ 24.6 $ 58.7 $ 31.5 $ 37.0 $ 37.8 $ 25.0 $ 131.3
Sales $ 463.4 $ 496.5 $ 548.3 $ 552.5 $ 2,060.7 $ 604.0 $ 666.2 $ 650.7 $ 585.3 $ 2,506.2
Operating Margin (0.9)% 2.6% 4.7% 4.5% 2.8% 5.2% 5.6% 5.8% 4.3% 5.2%
Adjusted operating margin Q1 2011 Q2 2011 Q3 2011 Q4 2011 YTD 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 YTD 2012
Operating income (loss) $ 173.4 $ 42.4 $ 33.4 $ (46.2) $ 203.0 $ 37.4 $ 43.3 $ 43.5 $ 13.3 $ 137.5
Special items (1) (127.2) 2.7 4.9 72.9 (46.7) 8.5 11.8 8.3 25.3 53.9
Joint venture equity earnings (5.7) - - - (5.7) - - - - -
Adjusted operating income $ 40.5 $ 45.1 $ 38.3 $ 26.7 $ 150.6 $ 45.9 $ 55.1 $ 51.8 $ 38.6 $ 191.4
Sales $ 682.8 $ 723.4 $ 694.0 $ 609.2 $ 2,709.4 $ 745.5 $ 756.6 $ 707.7 $ 651.0 $ 2,860.8
Operating Margin 5.9% 6.2% 5.5% 4.4% 5.6% 6.2% 7.3% 7.3% 5.9% 6.7%
3
Adjusted operating margin Q1 2013 Q2 2013 Q3 2013 Q4 2013 YTD 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 YTD 2014
Operating income (loss) $ 40.5 $ 80.7 $ 61.6 $ 48.7 $ 231.5 $ 56.4 $ 49.4 $ 63.6 $ (14.3) $ 155.1
Special items (1) 16.6 (5.2) 10.8 7.8 30.0 22.9 39.8 22.0 80.2 164.9
Adjusted operating income $ 57.1 $ 75.5 $ 72.4 $ 56.5 $ 261.5 $ 79.3 $ 89.2 $ 85.6 $ 65.9 $ 320.0
Sales $ 801.1 $ 1,037.6 $ 1,008.9 $ 923.6 $ 3,771.2 $ 1,002.3 $ 1,005.5 $ 958.4 $ 869.3 $ 3,835.5
Operating Margin 7.1% 7.3% 7.2% 6.1% 6.9% 7.9% 8.9% 8.9% 7.6% 8.3%
Adjusted operating margin Q1 2015 Q2 2015 Q3 2015 Q4 2015 YTD 2015 Q1 2016
Operating income $ 70.1 $ 80.3 $ 69.2 $ 31.3 $ 250.9 $ 71.3
Special items (1) 9.3 11.9 18.7 31.4 71.3 13.8
Adjusted operating income $ 79.4 $ 92.2 $ 87.9 $ 62.7 $ 322.2 $ 85.1
Sales $ 873.1 $ 887.1 $ 841.6 $ 775.8 $ 3,377.6 $ 847.0
Operating Margin 9.1% 10.4% 10.4% 8.1% 9.5% 10.0%
Adjusted gross margin is calculated as follows:
(In millions) Twelve Months Ended December 31, 2015
Gross margin - GAAP $ 681.5
Special items in gross margin(1) 39.7
Gross margin before special items $ 721.2
Specialty operating income mix percentage is calculated as follows:
Platform operating income mix percentage 2005* 2010* 2015
Color, Additives and Inks $ 4.3 $ 37.7 $ 135.4
Specialty Engineered Materials 0.4 49.7 79.6
Designed Structures and Solutions - - 13.8
Specialty Platform $ 4.7 $ 87.4 $ 228.8
Performance Products and Solutions 75.7 54.0 57.4
Distribution 19.5 42.0 68.0
Joint ventures 91.9 18.9 —
Corporate and eliminations (51.5) (27.7) (103.3)
Operating income GAAP $ 140.3 $ 174.6 $ 250.9
Less: Corporate operating expense 51.5 27.7 103.3
Operating income excluding Corporate $ 191.8 $ 202.3 $ 354.2
Specialty platform operating mix percentage 2% 43% 65%
4
Adjusted EBITDA and net debt to adjusted EBITDA is calculated as follows:
(In millions) Q2 2015 Q3 2015 Q4 2015 Q1 2016
Trailing Twelve Months
Ended March 31, 2016
Income (loss) from continuing operations, before income taxes $ 63.4 $ 51.4 $ (0.4) $ 57.0 $ 171.4
Interest expense, net 16.2 16.2 15.6 14.6 62.6
Depreciation and amortization 25.0 28.3 25.9 27.2 106.4
Special items, impact on income (loss) from continuing operations
before income taxes(1) 11.9 18.6 47.8 13.6 91.9
Accelerated depreciation included in special items (0.2) (4.3) (1.6) (2.8) (8.9)
Adjusted EBITDA $ 116.3 $ 110.2 $ 87.3 $ 109.6 $ 423.4
Short-term and current portion of long-term debt $ 18.6
Long-term debt 1,174.3
Less: Cash and cash equivalents (155.4)
Net Debt 1,037.5
Net Debt/TTM Adjusted EBITDA 2.5
* Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principal, discontinued operations or the related resegmentation
https://www.avient.com/sites/default/files/2020-07/case-study-one-pager-versalloy-tpe-cargo-rack.pdf
OFF-ROAD VEHICLE
MANUFACTURER
C A R G O R A C K
• Design freedom
• Improve process efficiency to reduce cost
• High strength-to-weight ratio
• Aesthetic appeal
• Weather and chemical resistance
• Replaced metal with a injection-moldable
thermoplastic plus TPE overmold to meet
performance demands and maintain
premium brand quality
• Provided technical support to help expand
the design and function of the cargo rack
• Reduced manufacturing costs by
eliminating the painting step from the
process
Versalloy™ TPE and thermoplastic substrate
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/products/thermoplastic-elastomers/versalloy-thermoplastic-elastomers
off-road vehicle Manufacturer
https://www.avient.com/sites/default/files/2022-11/Vehicle HVAC System Application Snapshot.pdf
TIER 1 SUPPLIER
V E H I C L E H V A C S Y S T E M
• Rapidly develop formulations for 7 types of thermoplastic
• Help Tier 1 meet VW requirements for anti-static solutions
• Able to quickly develop 7 SmartBatch (color
+ effect additive) solutions, for 7 types of
thermoplastic
• Avient formulated the TPE used in the air
vents for this HVAC system
SmartBatch™ Combination Colorants and
Additives, Cesa™ Stat Additives, and
OnFlex™ TPE
KEY REQUIREMENTS
WHY AVIENT?
AVIENT SOLUTION
IMPROVE VIAQ
Copyright © 2022, Avient Corporation
LEARN MORE
https://www.avient.com/products/thermoplastic-elastomers/onflex-thermoplastic-elastomers
Tier 1 supplier
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520RW%2520Baird%25202015%2520Industrial%2520Conference%2520-%2520November%25202015.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
The final amount of charges resulting from the planned North American asset realignment and the Company’s ability to realize anticipated
savings and operational benefits from the asset realignment;
Our ability to achieve the strategic and other objectives relating to the acquisition of Spartech Corporation, including any expected synergies;
Our ability to successfully integrate Spartech and achieve the expected results of the acquisition, including, without limitation, the acquisition
being accretive;
Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability
and cost of credit in the future;
The financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with
inadequate liquidity) to maintain their credit availability;
The speed and extent of an economic recovery, including the recovery of the housing market;
Our ability to achieve new business gains;
The effect on foreign operations of currency fluctuations, tariffs, and other political, economic and regulatory risks;
Changes in polymer consumption growth rates in the markets where we conduct business;
Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online;
Fluctuations in raw material prices, quality and supply and in energy prices and supply;
Production outages or material costs associated with scheduled or unscheduled maintenance programs;
Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters;
An inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working
capital reductions, cost reductions, employee productivity goals, and an inability to raise or sustain prices for products or services;
An inability to raise or sustain prices for products or services;
An inability to maintain appropriate relations with unions and employees;
The inability to achieve expected results from our acquisition activities;
Our ability to continue to pay cash dividends;
The amount and timing of repurchases of our common shares, if any; and
Other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates
and changes in the rate of inflation.
The above list of factors is not exhaustive.
We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
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
Building &
10%
Electrical &
11%
9%
Distribution
28%
PP&S
Specialty
52%
69%
13%
7% Asia
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?
Trailing twelve months adjusted gross margin is calculated as follows:
Three Months
Nine Months
Trailing Twelve Months
(TTM) Ended
(In millions) December 31, 2014 September 30, 2015 September 30, 2015
Gross margin - GAAP $ 152.6 $ 524.6 $ 677.2
Special items in gross margin 15.8 30.0 45.8
Gross margin excluding special items $ 168.4 $ 554.6 $ 723.0
Adjusted EBITDA and net debt to adjusted EBITDA is calculated as follows:
Three Months
Nine Months
Trailing Twelve
Months (TTM) Ended
(In millions) December 31, 2014 September 30, 2015 September 30, 2015
Income from continuing operations,
before income taxes $ (31.2) $ 168.1 $ 136.9
Interest expense, net 15.6 48.5 64.1
Depreciation and amortization 25.0 78.4 103.4
Special items, impact on income from
continuing operations before income
taxes
80.8 39.8 120.6
Accelerated depreciation included in
special items (0.2) (4.6) (4.8)
Adjusted EBITDA $ 90.0 $ 330.2 $ 420.2
Short-term portion and current portion of
long-term debt $ 61.8
Long-term debt 1,038.0
Less: Cash and cash equivalents (235.7)
Net Debt 864.1
Net Debt/TTM Adjusted EBITDA 2.1
Baird Non GAAP Rec
Baird - November 10, 2015
POL IR Presentation - November 2015 11.5.2015 - Website
��PolyOne Investor Presentation�RW Baird 2015 Industrial Conference�November 2015��
Forward-Looking Statements
Use of Non-GAAP Measures
PolyOne Commodity to Specialty Transformation
PolyOne�At A Glance
Mix Shift Highlights Specialty Transformation
Confirmation of Our Strategy
Proof of Performance & 2020 Goals
Innovation Drives Earnings Growth
Innovation Pipeline Potential
Innovation Initiatives
Design and Service as a Differentiator
Customer First Through World-Class Service
Debt Maturities & Pension Funding
Free Cash Flow and Strong Balance Sheet �Fund Investment / Shareholder Return
Why Invest In PolyOne?
https://www.avient.com/news/polyone-launches-moisture-cured-eccoh-xls-non-halogen-wire-cable-applications
With the introduction of moisture-cured ECCOH XLS technology, wire and cable manufacturers can now choose the most cost-effective technology for specific production environments when selecting a low smoke and fume, non-halogen composition:
https://www.avient.com/sites/default/files/2020-09/oncap-anti-fog-product-bulletin.pdf
They reinforce packaging integrity by maintaining a
film’s sealing properties, avoiding delamination of
the film structure, and maintaining transparency.
https://www.avient.com/investor-center/news/polyone-announces-leadership-appointments
He will continue to serve in these capacities for the company.
She has led strategic insights and market research, re-invigorated the company's Inside Sales function, and launched a focus on the customer experience that will continue to differentiate
https://www.avient.com/investor-center/news/polyone-host-investor-conference-call
With this in mind, we have activated business continuity measures in all regions to ensure we're utilizing our global footprint and resources to continue to serve our customers.
https://www.avient.com/sites/default/files/2025-01/Maxxam NHFR Non-Halogen Flame Retardant Polyolefins - Product Selector Guide EMEA.pdf
Product Name H15 H XF
V2 70
MF5200-5004
NHFR V2 HS
MF5200-5005
NHFR V2 RS H
MF5200-5006
NHFR V2 RS HS
H6 H XF
H20 H XF
H6 T/05 H XF
H6 T/10 H XF
H6 T/20 XF
H6 GF/10 XF
V070
H8 GF/20 XF
H12 GF/25 H
XF V0 70
H6 GF/30 XF
PE H XF
Polymer PP PE
Flammability V2 V2 V2 V2 V0 V0 V0 V0 V0 V0 V0 V0 V0 V0
UL Listed No No No No No No No No No No No No No Yes
Reinforcement Unfilled Unfilled Talc Talc Unfilled Unfilled Talc Talc Talc Glass Filled Glass Filled Glass Filled Glass Filled Unfilled
Density (g/cm3) 1.03 0.9 0.98 1.05 1.07 1.06 1.08 1.15 1.16 1.11 1.25 1.32 1.35 1
MFI,
230°C/2.16 kg 13 20 23 20 5.5 20 6 6 6 6 7 12 5.5
E-Modulus (Tensile
Modulus - Mpa) 1900 1500 2400 2600 2500 2500 2500 3000 3000 4300 6500 7500 8250 2000
Tensile Strength
(Mpa) 25 30 32 30 26 20 26 25 23 55 70 75 78 20
Elongation (%)
Product Name C10 XF
V2 70
C10 H XF
C10 H XF
V0 T
C10 T/10 XF
C10 T/20 XF
C6 GF/30 H XF
C2 GF/20 XF
C6 GF30 H UV XF
V0 70 GREY X2 70 GREY X3 70
Resin Chemistry COPO HOMO + COPO
Polymer PP
Flammability V2 V0 V0 V0 V0 V0 V0 V0 V0 V0
UL Listed No No No No No Yes No No No No
Reinforcement Unfilled Unfilled Unfilled Talc Talc Glass Filled Glass Filled Glass Filled Glass Filled Glass Filled
Density (g/cm3) 1.01 1.06 1.09 1.16 1.28 1.35 1.23 1.38 1.24 1.25
MFI, 230°C/2.16 kg 7 10 10 9 10 4.5 2.5 4.5 4 0
E-Modulus (Tensile
Modulus - Mpa) 1800 1500 1300 1500 2400 8000 5000 8000 5250 6000
Tensile Strength
(Mpa) 18 15 20 15 15 60 45 60 40 45
Tensile Strain at Break
(ISO 527-2) (%) 63
https://www.avient.com/products/engineered-polymer-formulations/high-temperature-polymer-formulations/colorant-chromatics-x-ray-opaque-formulations-0
Healthcare Thermoplastics: Trilliant™ HC