https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520KeyBanc%2520Conference%2520w%2520nonGAAP.pdf
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
• 19 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
• Goal of $2.50
Adjusted EPS by
2015, nearly double
2013 EPS
• Drive double digit
operating income
and adjusted EPS
growth
PolyOne Corporation Page 5
Building &
Construction
13%
Industrial
12%
Transportation
18%
Wire & Cable
9%
Packaging
16%
Consumer
10%
HealthCare
11% Appliance
Electronics &
Electrical
5%
2013 Revenues: $3.8 Billion
End Markets
2013 Revenues: $3.8 Billion
PolyOne
At A Glance
United
States
67%
Europe
14%
Canada
7%
Asia
Latin
America
Specialty
54%
PP&S
18%
Distribution
28%
$13
$31
$46 $46
$92 $96
$122
$195
$0
$50
$100
$150
$200
2006 2007 2008 2009 2010 2011 2012 2013
Specialty Operating Income
PolyOne Corporation Page 6
Old
PolyOne Transformation
*Operating Income excludes corporate charges and special items
2%
34%
43%
62%
66%
0%
20%
40%
60%
80%
100%
2005 2008 2010 2013 2014 YTD 2015
%
o
f
O
p
e
ra
ti
n
g
I
n
c
o
m
e
*
JV's Performance Products & Solutions Distribution Specialty
65-75%
Specialty OI $5M $46M $87M $195M $129M Target
Mix Shift Highlights Specialty Transformation
2015
Target
PolyOne Corporation Page 7
Confirmation of Our Strategy
The World’s Premier Provider of Specialized
Polymer Materials, Services and Solutions
Specialization Globalization
Operational
Excellence
Commercial
Excellence
PolyOne Corporation Page 8
Strategy and Execution Drive Results
$0.12
$0.27
$0.21
$0.13
$0.68
$0.82
$1.00
$1.31
'06 '07 '08 '09 '10 '11 '12 '13
‘06-‘13 EPS CAGR = 41%
EPS Share Price vs.
https://www.avient.com/sitemap
Avient Elects Neil Green and Ernest Nicolas to Board of Directors
Remafin™ Fiber Colorants for PP
Avient Earns LUXE PACK “in green” Award for Sustainability Initiative
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Investor%2520Day%25205-18-15.pdf
Garratt
President, Performance Products and Solutions
PolyOne Corporation Page 48
2014 Revenue by
Industry Segment
2014 Revenues:
$0.8 Billion
At a Glance
Performance Products & Solutions
80%
14%
Latin
America
4%
Building &
33%
Electrical &
1%
11%
5% Transportation
18% Wire & Cable
16%
PolyOne Corporation Page 49
What We Have Delivered
4.3%
6.3%
7.2%
7.7%
2011 2012 2013 2014
Operating Margin
$28
$39
$56
$63
2011 2012 2013 2014
Operating Income ($M) •Relentless focus on
portfolio mix optimization
•Lean Six Sigma drives
operational excellence
• Innovating in new markets
such as healthcare
•Expanding presence in
Mexico and China
Performance Products & Solutions
PolyOne Corporation Page 50
$96
$109
2006* 2014
To Value
Gross Margin
($ in millions)
+13%
1,431
1,124
2006* 2014
From Volume…
(lbs in millions)
-21%
Performance Products & Solutions
*2006 = Near peak housing
PolyOne Corporation Page 51
Accelerating Growth
Market Growth/
Megatrends
Innovation
Collaboration
Geographic
Expansion
Performance Products & Solutions
PolyOne Corporation Page 52
Who We Are Growing With
Performance Products & Solutions
PolyOne Corporation Page 53
Geographic Growth Opportunities
Mexico represents growth,
spurred by:
• Robust demand in Automotive
• Re-shoring from Asia
• PolyOne collaboration
China is a $2B PVC market;
2nd largest in the world:
• A new tax license enables
domestic (vs. export) business
• We have expanded capacity
• We are investing in capability
Performance Products & Solutions
PolyOne Corporation Page 54
Addressable Market
($ millions) $300 $150 $200
Innovation Pipeline Potential
Performance Products & Solutions
Prototype Frame
Opportunity
Scale-up & Test
Market
Build
Business Case
Commercial
Launch
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
0
2
0
1
0
3
0 1 1
1
5
3
1
1
1
Breakthrough
Platform
Derivative
PolyOne Corporation Page 55
Megatrends Aligned with Key End Markets
Increasing
Energy
Efficiency
Protecting
the
Environment
Improving
Health and
Wellness
Megatrend End Markets
Globalizing
and
Localizing
Health &
Wellness
Transportation
Packaging
Consumer
Performance Products & Solutions
PolyOne Corporation Page 56
Healthcare Solutions
LED Lighting
Key Initiatives
Eco-Conscious
Solutions
$25M
Revenue
potential
$30M
Revenue
potential
$60M
Revenue
Potential
Performance Products & Solutions
PolyOne Corporation Page 57
Platinum Vision
4.3%
6.3%
7.2% 7.7%
10-12%
2011 2012 2013 2014 2020
Platinum
Vision
World Class Operating Margin
Accelerating Growth
Performance Products & Solutions
Market Growth/
Megatrends
Innovation Collaboration Geographic
Expansion
PolyOne Corporation Page 58
Summary
• Business evolution from volume to value
• Business is at an inflection point
• Growth will be driven by:
Economic & Megatrend alignment
Innovation
Collaboration across PolyOne
Geographic sales expansion in China and Mexico
Performance Products & Solutions
PolyOne Corporation Page 59
PolyOne Distribution
Mark Crist
President, Distribution
PolyOne Corporation Page 60
At a Glance
PolyOne Distribution
15%
52%
2006 2014
Key Suppliers 2014 Revenues: $1.1 Billion
ROIC
Building &
13%
Electrical &
23%
15%
4%
25%
http://www.avient.com/Pages/VariationRoot.aspx
PolyOne Corporation Page 61
What We Do
Processing Expertise
World-Class Supply Chain
Deep Customer Relationships
Market Consultation
Right the First Time… Every Time
PolyOne Corporation Page 62
What We Have Delivered
2.6%
3.5%
4.6%
6.4% 6.1%
2006 2008 2010 2012 2014
Operating Margin
$19
$28
$42
$66 $68
2006 2008 2010 2012 2014
Operating Income ($M) • World class supplier
line card
• Differentiating with
service and operational
excellence
• Key portfolio additions
with DuPont, Bayer
and Ineos
• Value based selling
and discipline
PolyOne Distribution
PolyOne Corporation Page 63
Accelerating Growth
PolyOne Distribution
Market Growth/
Megatrends
Commercial
Investment
Cross-Selling &
Collaboration
Growth in
Targeted Areas
PolyOne Corporation Page 64
Who We Are Growing With
PolyOne Distribution
PolyOne Corporation Page 65
Megatrends Aligned with Key End Markets
Increasing
Energy
Efficiency
Protecting
the
Environment
Improving
Health and
Wellness
Megatrend End Markets
Globalizing
and
Localizing
Health &
Wellness
Transportation
Packaging
Consumer
PolyOne Distribution
PolyOne Corporation Page 66
Geographic Growth Opportunities
• Currently 10% of POD’s revenue is
generated from Mexico
• Existing business is served “from
the border”
• New Mexico district & warehouse
will drive transportation growth in
Central Mexico
• Expansion in China resulted from
growing with our NA HC customers
• Investing in sales deployments
• Localizing supply
• Gaining Share
PolyOne Distribution
PolyOne Corporation Page 67
Going Beyond Distribution
WeatherTech® –
Polymer BumpStep®
BEDRUG™ – Tri-fold
Truck Bed Cover
CeQur PaQ – Type 2
Insulin Delivery Device
PolyOne Distribution
PolyOne Corporation Page 68
Platinum Vision
2.6%
4.6%
6.1%
6.5 - 7.5%
2006 2010 2014 2020
Platinum
Vision
World Class Distribution Margin
Accelerating Growth
PolyOne Distribution
Market Growth/
Megatrends
Commercial Investment Cross-Selling &
Collaboration
Growth in
Targeted Areas
PolyOne Corporation Page 69
Summary
• Motivated and well trained POD sellers
making the calls / collaborating with other
PolyOne businesses
• Representing a world class supplier line card
• Delighted customers and
suppliers who choose us
to represent them
PolyOne Distribution
PolyOne Corporation Page 70
Financial Highlights
Bradley C.
https://www.avient.com/sites/default/files/resources/AVNT Fermium Conference - May 2023 w NonGAAP Recs.pdf
National Defense
budget of $842 billion submitted to Congress
in Q1 2023
• European NATO members annual defense
spend expected to increase by up to 20%
Dyneema® is the world’s strongest fiber™
One of the highest strength to weight
ratios of any material on Earth
Direct relationships with industry leading
armor manufacturers
Resistant to most chemicals, UV, and
moisture to handle any environment
Avient Confidential 17
DEFENSE
Source: US Department of Defense, defense.gov, NATO17
Source:
TRANSPORTATION
• Increased EPA regulations requiring
improved fuel efficiency, enabled in part by
lower-weight vehicles
• Automakers preparing for 2/3 of U.S.
vehicles to be 100% electric by 2032
Lightweight panels that establish both
strength and stiffness resulting in
decreased energy usage, lower emissions
Long-lasting Color applications to resist
UV exposure, temperature fluctuations
and exceed the stylistic requirements of
global automakers
18
$130
$530
$0.60
$2.40
2023 GUIDANCE
19
Sales Adjusted EBITDA
$845
$3,400
Adjusted EPS
(in millions) (in millions)
CASH FLOW / LEVERAGE
20
• Maintaining free cash flow
and leverage guidance from
February earnings call
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Restructuring actions to
streamline operations and
improve profitability,
primarily in Europe
($ millions) 2023E
Cash Flow from Operating Activities 350$
Less:
Run-Rate CapEx (110)
CapEx for IT System Upgrade (25)
CapEx for Restructuring (15)
Total CapEx (150)
Free Cash Flow 200$
Adjusted EBITDA 530$
Net Debt / Adjusted EBITDA 2.9x
LONG-TERM REVENUE GROWTH DRIVERS
Growth Drivers
Long-Term
Growth Rate
Sustainable Solutions 8–12%
Healthcare 8–10%
Composites 10%
Asia / LATAM 5%
Other (GDP growth) 2–3%
Avient 6.5%
21
Sustainable
Solutions
32%
Asia / LATAM
Composites
Other (GDP
Growth)
39%
• Virtual presentation to be held
September 20, 2023
• The company will be
conducting an investor-focused
presentation around our
sustainability solutions portfolio
Avient Confidential 22
SUSTAINABILITY
INVESTOR DAY
22
$340M
$405M
$455M
$550M
$790M
$915M
2016 2017 2018 2019 2020PF** 2021 2022PF***
SUSTAINABILITY FOR A BETTER TOMORROW
Revenue From Sustainable Solutions* 2016-2022
($ in millions)
Organic Future Growth Revenue Assumptions From Sustainable Solutions: 8 - 12%
23
*Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”)
**2020 is Pro Forma to include full year of the Clariant Color business
***2022 is Pro Forma for the acquisition of Avient Protective Materials and the divestiture of Distribution
$1,175M
Lightweighting
Eco-Conscious
Recycle Solutions
VOC Reduction
Sustainable Infrastructure
Human Health & Safety
Reduced Energy Use
Bio-polymers
SUSTAINABILITY NEEDS BY MARKET
B&C
• Eco-Conscious
• Carbon footprint
• Resource
conservation
• Carbon footprint
• Bio based content
• Eco-Conscious
Automotive
• Light weighting
• Recycled Content
• VOC reduction
• Recycle Solutions
• Carbon Footprint
Packaging
• Recycle Solutions
• Food waste
reduction
Common Theme: CO2 Emission Goals
Increasing Single-Use Plastic Regulation
24
INVESTING
IN INNOVATION
S U S T A I N A B I L I T Y P O R T F O L I O
25
AP P EN D IX
28
RAW MATERIAL 2022 ANNUAL PURCHASES
Performance
Additives
Pigments
12%
TiO2
Dyestuffs
2%
Polyethylene
Nylon
Polypropylene
Styrenic Block
Copolymer
Other Raw
Materials
33%
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
• Cost inflation
decelerating,
particularly for
hydrocarbon-based
raw materials
2022 pro forma results for the acquisition of Avient Protective Materials
SEGMENT DATA
U.S. & Canada
40%
37%
18%
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
24%
Building and
END MARKET REVENUE
$2,355M $402M
$1,300M $272M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$592M$3,653M
(1)
9%
30
(1) Total company sales and adjusted EBITDA of $3,653M and $592M, respectively, include intercompany sales eliminations and corporate costs
C O L O R , A D D I T I V E S & I N K S
2022 REVENUE | $2 .4 B ILL ION
34%
38%
END MARKET REGION
31
34%
21%
Building &
1% Energy
2%
S P E C I A LT Y E N G I N E E R E D M AT E R I A L S
2022 PRO FORMA REVENUE | $1 .3 B ILL ION
END MARKET
52%
35%
REGION
32
19%
8%Industrial
9% Defense
Building &
32%
27%
14%
Building &
3%
1% Defense
1%
(18% of sales)
9%
2022 PROFORMA AVIENT REGIONAL SALES
BY END MARKET
27%
14%
17%
Building &
(37% of sales)Transportation
24%
12%
Building &
US &
Canada
(40% of sales)
56%
23%
Building &
1%
LATAM
(5% of sales)
3%
33
PEER COMPARISONS
AVIENT IS ASSET LIGHT
Capex / Revenue
2023E (%)
Avient Specialty
Other Specialty /
Note: Avient reflects 2023 estimated revenue of $3,400 and estimated run-rate CAPEX of $110M.
35
4 4
5 5 5
6
7
9
FREE CASH FLOW CONVERSION
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/industries/healthcare/medical-packaging/nutraceutical-packaging
Versaflex™ HC Thermoplastic Elastomers
https://www.avient.com/products/engineered-polymer-formulations
Trilliant™ HC Healthcare Thermoplastics
https://www.avient.com/resources/safety-data-sheets?page=6191
GREEN 625 GLOSS INNER
GREEN 625 GOLD INNER
GREEN 342 GOLD OUTER
https://www.avient.com/resources/safety-data-sheets?page=4554
PP BLUE ORI
PP CAMO EFFECT
PP RED ORICA
https://www.avient.com/resources/safety-data-sheets?page=7142
GREEN 2272C LM
GREEN 368C LM
GREEN 2421C LM
https://www.avient.com/resources/safety-data-sheets?page=2811
PG 109519.00 WT PP
UV COOL GRAY 10C PP
PP FR 8-6 LMS-1000