https://www.avient.com/sites/default/files/2023-07/2023 OHP Off Road Application Bulletin.pdf
You’ll get design support,
manufacturing and technical guidance, and polymer recommendations
that enhance your profitability and thrill your customers as they
travel off road.
https://www.avient.com/sites/default/files/2021-03/packaging-solutions-for-film-sheet-product-selection-guide.pdf
With the increasing demands
for flexible packaging, most manufacturers of film
and sheet in flexible packaging are required to
optimize processing, enhance goods performance
and achieve cost savings to increase profitability
and gain market share.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Investor%2520Day%25205-18-15.pdf
Richardson
Executive Vice President and
Chief Financial Officer
PolyOne Corporation Page 71
Who We Are Growing With
PolyOne Corporation Page 72
2014 Awards and Recognitions
PolyOne Corporation Page 73
2014 Financial Highlights
$131
$151
$191
$262
$320
Adjusted Operating
Income
$0.68
$0.82
$1.00
$1.31
$1.80
Adjusted EPS
($ millions)
PolyOne Corporation Page 74
2006 2015 Target 2014
“Where we were” (Est. in 2012) “Where we are”
Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 12 – 16% 14.7%
Global Specialty Engineered Materials 1.1% 12 – 16% 12.1%
Designed Structures & Solutions 1.4%(2012) 8 – 10% 7.3%
Performance Products & Solutions 5.5% 9 – 12% 7.7%
Distribution 2.6% 6 – 7.5% 6.1%
Specialty Platform % of
Operating Income 6.0% 65 – 75% 65%
ROIC 5.0% 15% 11.3%
Adjusted EPS Growth N/A Double Digit
Expansion 37%
Proof of Performance & 2015 Targets
PolyOne Corporation Page 75
2,883
2,565
2006 2014
Volume
(lbs in millions)
-11%
$219
$451
2006 2014
Commercial Investment
($M)
+105%
$303
$770
2006 2014
Adjusted
Gross Margin ($M)
+154%
*Total SG&A
Ours is Not a Cost Cutting Story
Investment in
Commercial Resources…
Drives Mix Improvement AND
Gross Profit $$ Expansion
PolyOne Corporation Page 76
Financial Strength
$76
$222
$154
$105
$176 $179
$230
2008 2009 2010 2011 2012 2013 2014
Adjusted Cash Flow from
Operations
($ in millions)
18.9%
11.7%
9.6% 9.6%
10.8% 10.9%
9.9%
2008 2009 2010 2011 2012 2013 2014
Working Capital %
of Sales
PolyOne Corporation Page 77
Financial Flexibility
$49
$317
$600
2015 2020 2023
Debt Maturities
As of December 31, 2014
($ millions)
Coupon: 7.500% 7.375% 5.250%
2.6x
2.0x
1.8x
1.9x
2011 2012 2013 2014
Net Debt / Adjusted EBITDA
PolyOne Corporation Page 78
Shares
Purchased
(M)
2012 1.2
2013 5.0
2014 6.3
Cash to Generate Value
Expand marketing,
commercial and technical
capabilities
Leverage supplier
partnerships for
innovation
Organic
Growth
Acquisitions
Share
Repurchases
Dividends
$0.16
$0.20 $0.24
$0.32
$0.40
$0.10
$0.20
$0.30
$0.40
$0.50
2011 2012 2013 2014 2015
Annual Dividend Targets that expand:
• Specialty offerings
• End market
presence
• Geographic
breadth
PolyOne Corporation Page 79
PolyOne Corporation Page 80
PolyOne Corporation Page 81
2020 Platinum Vision
Robert M.
S&P 500
-100%
200%
300%
400%
500%
600%
POL S&P 500
PolyOne Corporation Page 85
Formula for Success
Innovation
Market
Beating
Performance
Excellence in Execution
PolyOne Corporation Page 86
Track Record of Successful Acquisitions
$12
$50
2007 2014
$22
$39
2012 2014
$24
$69
2012 2014
GLS ColorMatrix Spartech
OI in $ millions
PolyOne Corporation Page 87
Driving Toward Premier Profitability
EBIT Margins for top tier
companies
Victrex 41%
18% Albemarle
Eastman 17%
Hexcel 17%
FMC 16%
Ecolab 14%
12% Specialty EBIT Margin – 2014
IFF 19%
Celanese 13%
PolyOne Corporation Page 88
2006 2014 2020
“Where we were” “Where we are” Platinum Vision
Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 14.7% 20%+
Global Specialty Engineered Materials 1.1% 12.1% 20%+
Designed Structures & Solutions 1.4%(2012) 7.3% 12 – 14%
Performance Products & Solutions 5.5% 7.7% 10 – 12%
Distribution 2.6% 6.1% 6.5 – 7.5%
Specialty Platform % of
Operating Income 6.0% 65% 80%+
ROIC 5.0% 11.3% 15%
Adjusted EPS Growth N/A 37% Double Digit
Expansion
2020 Platinum Vision
PolyOne Corporation Page 89
Platinum Vision: Pathway to Accelerated Growth
Organic
Sales Growth
Margin
Expansion
Share
Repurchases
Acquisitions
PolyOne Corporation Page 90
2006 2010 2014 2020
Driving Toward a Premium Specialty Multiple
6x
4x
Commodity POL
8x
Hybrid
10x
14x+
Mid-Tier
Specialty
Premium
Specialty
M
ul
tip
le
POL
POL
POL
PolyOne Corporation Page 91
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
Senior management uses operating income excluding special items, adjusted EPS, and working
capital 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.
https://www.avient.com/center-of-excellence/avient-us-and-canada
We’re ready to work with you early in the product development cycle to deliver a better end result that drives your profitability and success.
https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Earnings Press Release_0.pdf
We are focused on driving profitable, organic, top-line growth while expanding margins,"
added Dr.
2) Tax adjustments include the net tax impact from non-recurring income tax items, adjustments to uncertain tax position reserves and the
establishment, reversal or changes to valuation allowances.
9
Attachment 4
Avient Corporation
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited)
March 31, 2024 December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents $ 444.3 $ 545.8
Accounts receivable, net 475.3 399.9
Inventories, net 354.0 347.0
Other current assets 117.1 114.9
Total current assets 1,390.7 1,407.6
Property, net 1,021.7 1,028.9
Goodwill 1,700.1 1,719.3
Intangible assets, net 1,546.5 1,590.8
Other non-current assets 217.1 221.9
Total assets $ 5,876.1 $ 5,968.5
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term and current portion of long-term debt $ 9.6 $ 9.5
Accounts payable 428.3 432.3
Accrued expenses and other current liabilities 294.2 331.8
Total current liabilities 732.1 773.6
Non-current liabilities:
Long-term debt 2,069.4 2,070.5
Pension and other post-retirement benefits 66.3 67.2
Deferred income taxes 280.0 281.6
Other non-current liabilities 390.5 437.6
Total non-current liabilities 2,806.2 2,856.9
SHAREHOLDERS' EQUITY
Avient shareholders’ equity 2,321.3 2,319.2
Noncontrolling interest 16.5 18.8
Total equity 2,337.8 2,338.0
Total liabilities and equity $ 5,876.1 $ 5,968.5
10
Attachment 5
Avient Corporation
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Three Months Ended
March 31,
2024 2023
Operating activities
Net income $ 49.7 $ 20.4
Adjustments to reconcile net income to net cash used by operating activities:
Depreciation and amortization 43.8 48.7
Accelerated depreciation 0.5 1.8
Share-based compensation expense 3.3 3.2
Changes in assets and liabilities:
Increase in accounts receivable (81.9) (40.2)
(Increase) decrease in inventories (12.3) 3.8
Increase (decrease) in accounts payable 1.7 (9.9)
Accrued expenses and other assets and liabilities, net (47.6) (50.0)
Net cash used by operating activities (42.8) (22.2)
Investing activities
Capital expenditures (24.4) (20.3)
Net proceeds from divestiture — 7.3
Proceeds from plant closures 2.0 —
Other investing activities (2.1) —
Net cash used by investing activities (24.5) (13.0)
Financing activities
Cash dividends paid (23.5) (22.5)
Repayment of long-term debt (2.7) (0.8)
Other financing activities (1.9) (2.3)
Net cash used by financing activities (28.1) (25.6)
Effect of exchange rate changes on cash (6.1) 2.4
Decrease in cash and cash equivalents (101.5) (58.4)
Cash and cash equivalents at beginning of year 545.8 641.1
Cash and cash equivalents at end of period $ 444.3 $ 582.7
11
Attachment 6
Avient Corporation
Business Segment Operations (Unaudited)
(In millions)
Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) at the segment level does not
include: special items as defined in Attachment 3; corporate general and administration costs that are not allocated to
segments; intersegment sales and profit eliminations; share-based compensation costs; and certain other items that are not
included in the measure of segment profit and loss that is reported to and reviewed by the chief operating decision maker.
Three Months Ended
March 31,
2024 2023
Sales:
Color, Additives and Inks $ 515.3 $ 537.0
Specialty Engineered Materials 314.4 309.7
Corporate (0.7) (1.0)
Sales $ 829.0 $ 845.7
Gross margin:
Color, Additives and Inks $ 171.2 $ 162.0
Specialty Engineered Materials 107.0 93.9
Corporate — (8.3)
Gross margin $ 278.2 $ 247.6
Selling and administrative expense:
Color, Additives and Inks $ 96.4 $ 96.4
Specialty Engineered Materials 53.6 50.8
Corporate 34.2 43.3
Selling and administrative expense $ 184.2 $ 190.5
Operating income:
Color, Additives and Inks $ 74.8 $ 65.6
Specialty Engineered Materials 53.4 43.1
Corporate (34.2) (51.6)
Operating income $ 94.0 $ 57.1
Depreciation & amortization:
Color, Additives and Inks $ 21.9 $ 25.8
Specialty Engineered Materials 19.6 21.2
Corporate 2.8 3.5
Depreciation & amortization $ 44.3 $ 50.5
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 96.7 $ 91.4
Specialty Engineered Materials 73.0 64.3
Corporate (31.4) (48.1)
Other (expense) income, net (0.9) 0.7
EBITDA from continuing operations 137.4 108.3
Special items, before tax 6.2 27.3
Depreciation and amortization included in special items (0.5) (1.8)
Adjusted EBITDA $ 143.1 $ 133.8
12
Attachment 7
Avient Corporation
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(In millions, except per share data)
Senior management uses gross margin before special items 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 how it may serve as a basis for future performance.
https://www.avient.com/sites/default/files/2024-05/Responsible Care_14001 Global Cert_Avient_2024.pdf
Box 5882
Riyadh, Kingdom 11432
Saudi Arabia
Design and Manufacture of Color and Additive Concentrates, Thermoplastic Resins and Specialty Compounds
65536-116884Certificate No:
Page 41 of 53
ABS Quality Evaluations, Inc. 1701 City Plaza Drive, Spring, TX 77389, U.S.A.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520Wells%2520Fargo%252005%252008%25202014%2520w%2520non%2520GAAP.pdf
Use of Non-GAAP Measures
Page 3
PolyOne Commodity to Specialty Transformation
• Volume driven,
commodity producer
• Heavily tied to cyclical
end markets
• Performance largely
dependent on non-
controlling joint
ventures
2000-2005 2006 - 2009 2010 – 2014 2015 and beyond
• Steve Newlin
appointed, Chairman,
President and CEO
• New leadership team
appointed
• Implementation of
four pillar strategy
• Focus on value based
selling, investment in
commercial resources
and innovation to drive
transformation
• 18 consecutive
quarters of double-
digit adjusted EPS
growth
• Shift to faster growing,
high margin, less
cyclical end markets
• Key acquisitions propel
current and future
growth, as well as
margin expansion
• Established aggressive
2015 targets
• Continue specialty
transformation
• Targeting $2.50
Adjusted EPS by 2015,
nearly double 2013
EPS
• Drive double digit
operating income and
adjusted EPS growth
Confirmation of Our Strategy
The World’s Premier Provider of Specialized
Polymer Materials, Services and Solutions
Specialization Globalization
Operational
Excellence
Commercial
Excellence
-150.00%
-50.00%
50.00%
150.00%
250.00%
350.00%
450.00%
PolyOne S&P 500 Russell 2000 Dow Jones Chemical
All time high of
$39.28
April 4th, 2014
• 18 consecutive quarters of
double digit EPS growth
• 49% CAGR adjusted EPS
expansion 2006-2013
• 2013 stock price increased
73% versus 30% growth in the
S&P
• More than seven fold increase in
market cap: $0.5b $3.6b
Strategy and Execution Drive Results
Page 6
Appliance
4%
Building &
Construction
13%
Wire & Cable
9%
Electrical &
Electronics
5%
Consumer
10%Packaging
16%
Industrial
12%
HealthCare
11%
Transportation
18%
Misc.
2%
0.12
0.27 0.21
0.13
0.68
0.82
1.00
1.31
2.50
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
$2.50
2006 2007 2008 2009 2010 2011 2012 2013 2015
Target
Ad
ju
st
ed
E
ar
ni
ng
s P
er
S
ha
re
2013 Revenues: $3.8 Billion
End Markets
2013 Revenues: $3.8 Billion
EPS
Page 7
PolyOne
At A Glance
United
States
67%
Europe
14%
Canada
7% Asia
6%
Latin
America
6%
Specialty
54%
PP&S
18%
Distribution
28%
Mix Shift Highlights Specialty Transformation
Page 8
Old
PolyOne Transformation
*Operating Income excludes corporate charges and special items
2%
34% 43%
62% 64%
0%
20%
40%
80%
2005 2008 2010 2013 Q1 2014 2015
%
o
f O
pe
ra
tin
g
In
co
m
e*
JV's Performance Products & Solutions Distribution Specialty
65-75%
Specialty OI $5M $46M $87M $195M $60M Target
2015
Target
Proof of Performance & 2015 Goals
Page 9
2006 Q1 2014 2015
“Where we were” “Where we are” Target
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 13.8% 12 – 16%
Global Specialty Engineered
Materials 1.1% 11.6% 12 – 16%
Designed Structures & Solutions -- 6.5% 8 – 10%
Performance Products &
Solutions 5.5% 7.7% 9 – 12%
Distribution 2.6% 6.1% 6 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 64% 65 – 75%
3) ROIC* (after-tax) 5.0% 9.4% 15%
4) Adjusted EPS Growth N/A 42% Double Digit
Expansion
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
Bridge to $2.50 Adjusted EPS by 2015
2015 EPS: $2.50
2013 EPS: $1.31
Continued Gross Margin
Expansion
Mergers & Acquisitions
Spartech Accretion
Incremental share buybacks
Ongoing LSS Programs
(50-100 bps/yr)
Accelerated Innovation
& Mix Improvement Several Levers to
Drive Growth
Mid single digit revenue CAGR
Innovation Drives Earnings Growth
$20.3
$52.3
2006 2013
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
*Percentage of Specialty Platform revenue from products introduced in last five years
Page 11
14.3%
30.7%
2006 2013
Specialty Platform
Gross Margin %
19.5%
42.0%
2006 Q1 2014
Healthcare
Consumer
Packaging and Additive Technology
Transportation
Page 12
Unique and Innovative Solutions
https://www.dropbox.com/sh/dwe4t8aacvhb8ui/uD3p_bdglP/Presentation revise pics/GLS Beverage can closure XO 2.jpg
https://www.dropbox.com/sh/dwe4t8aacvhb8ui/-YgkycKypw/Anti-Counterfeiting release & images/GN1979.JPG
60%
100%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2014
Pension Funding**
As of March 31, 2014
Debt Maturities & Pension Funding – 3/31/14
Net Debt / EBITDA* = 1.9x
$48
$317
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Debt Maturities
As of March 31, 2014
($ millions)
Coupon Rates: 7.500% 7.375% 5.250%
** includes US-qualified pension plans only *TTM 3/31/2014
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
$0.16
$0.20
$0.24
$0.32
$0.10
$0.20
$0.30
$0.40
2011 2012 2013 2014
Annual Dividend
Expanding our sales,
marketing, and technical
capabilities
Investing in operational and
initiatives that drive
profitability growth
Manufacturing realignment
Targets that expand our:
• Specialty offerings
• End market presence
• Geographic footprint
• Operating Margin
Synergy opportunities
Adjacent material solutions
Repurchased 1.4 million
shares in Q1 2014
Repurchased 6.4 million
shares since April 2013
13.6 million shares are
available for repurchase
under the current
authorization
Organic
Growth
Acquisitions
Share
Repurchases
Dividends
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
Senior management uses adjusted operating income, adjusted EPS, and working
capital 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.
https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Earnings Presentation_For_Website_w_non-GAAP_5_6_1.pdf
Q1 2023
(TOTAL COMPANY)
$846 $829
$134
$143
17.3%
(in millions)
$0.63
$0.76
Adjusted EPS
(in millions)
+ 7% + 21%
Sales Adjusted EBITDA Adjusted EPS
6
- 2%
15.8%
+150 bps
Q1 2024 SEGMENT PERFORMANCE
(COLORS, ADDITIVES & INKS)
$537
$515
$91
$97
18.8%
(in millions) (in millions)
+ 7%
7
- 4%
17.0%
+180 bps
• Year over year demand
continues to improve for the
segment but slowly due to
continued weakness in Europe
• Raw material deflation & cost
reduction actions primary drivers
of adjusted EBITDA growth and
margin expansion of +180 bps vs
Q1 2023
Q1 2024 SEGMENT PERFORMANCE
(SPECIALTY ENGINEERED MATERIALS)
$310
$314
$64
$73
23.2%
(in millions) (in millions)
+ 14%
8
+ 1%
20.8%
+240 bps
• Sales growth in defense end
market offset by weaker
demand in telecommunications
end market
• Raw material deflation and
favorable mix impact from
defense sales primary drivers
of adjusted EBITDA growth and
margin expansion of +240 bps
vs Q1 2023
Q1 EBITDA BRIDGE
(TOTAL COMPANY)
9
$ millions
CAI:
Price / Mix (1)
Deflation 16
SEM:
Price / Mix 4
Deflation 7
Net Price Benefit 26
Wage/Other Inflation (9)
FX (2)
Q1 2024 $143
Adjusted
EBITDA
Q1 2023 $ 134
Demand (6)
• Positive net price benefit:
o Favorable raw material
deflation in both segments
• Wage and other inflation more than
offset cost reductions/synergies
2024 G U I DAN CE
FY 2024 GUIDANCE
Original Revised
Adjusted EBITDA $505 to $535 million $510 to $535 million
Adjusted EPS $2.40 to $2.65 $2.50 to $2.65
Interest Expense $105 to $110 million $105 million
Adjusted Effective Tax Rate 23% to 25% 23% to 25%
Capital Expenditures ~$140 million ~$140 million
11
Q2 2024: Adjusted EPS of $0.71
CE O “ TO P O F MI N D”
FO CU S ARE AS
AREAS OF FOCUS
13
+7%
Drive Profitable Organic
Top-Line Growth with
Margin Expansion
Amplify Innovation Build Leadership & Talent
Pipeline
AP P E N DI X
16
Performance
Additives
15%
Pigments
TiO2
Dyestuffs
Polyethylene
10%Nylon
Polypropylene
Styrenic Block
Copolymer
Other Raw
Materials
38%
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
RAW MATERIAL BASKET
SEGMENT DATA
U.S. & Canada
41%
36%
2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
19%
23%Industrial
Building and
7%
END MARKET REVENUE
$2,007M $358M
$1,138M $224M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$502M$3,143M
(1)
7%
18
(1) Total company sales and adjusted EBITDA of $3,143M and $502M, respectively, include intercompany sales eliminations and corporate costs
2023 REVENUE | $2 .0 BILLION
34%
37%
21%
END MARKET REGION
19
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 BILLION
52%
35%
20
6%Industrial
12%
10% Defense
Building &
END MARKET REGION
SPECIALTY ENGINEERED MATERIALS
32%
26%
Building &
6%
2% Defense
1%
(18% of sales)
2023 AVIENT REGIONAL SALES
25%
Building &
(36% of sales)Transportation
22%
Building &
12%
6%
US &
Canada
(41% of sales)
59%
22%
Building &
LATAM
(5% of sales)
21
BY END MARKET
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Dollars in millions, except for per share data)
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.
Senior management also uses 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 how it may serve as a basis for future performance.
https://www.avient.com/sites/default/files/2024-08/Avient-2023-Sustainability-Report_6.pdf
Leek, United Kingdom
3.
Barnsley, United Kingdom 13.
Knowsley, United Kingdom 14.
https://www.avient.com/sites/default/files/resources/PolyOne%25202011%2520Annual%2520Report.pdf
Knowsley, United Kingdom (5)
27.
Maintaining profitability during periods of raw
material price volatility is another critical challenge.
The new joint
venture will be 51% owned by PolyOne, will be based in Jeddah, Saudi Arabia
and remains subject to approvals by the government of the Kingdom of Saudi
Arabia (Kingdom) and other customary conditions to formation of a company
in the Kingdom.