https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Goldman%2520Sachs%2520Basic%2520Materials%2520Conference%2520-%2520May%25202016.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 – 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?
POL IR Presentation (Goldman Sachs Basic Materials Conference - 2016)
��PolyOne Investor Presentation�Goldman Sachs Basic Materials Conference�May 2016��
Forward-Looking Statements
Use of Non-GAAP Measures
PolyOne Commodity to Specialty Transformation
Confirmation of Our Strategy
26 Consecutive Quarters of EPS Growth
PolyOne�At A Glance
Mix Shift Highlights Specialty Transformation
Color and Engineered Materials at the�Heart of Specialty Transformation
Proof of Performance & 2020 Goals
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
Innovation Drives Earnings Growth
Ours is Not a Cost Cutting Story
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?
Appendix
1Q 2016 Financial Highlights
At a Glance�Color, Additives and Inks
At a Glance�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
Application Examples
Outdoor Applications
Slide Number 32
Authentication Technology
Metal Replacement Solutions
Range Rover Evoque Interior
Slide Number 36
High-Barrier Packaging Containers
Aerospace Applications
Investor Presentation - May 17, 2016 r7
Investor Presentation - May 17, 2016
https://www.avient.com/sites/default/files/2020-10/tpe-overmold-design-guide.pdf
Coloring
When overmolding TPEs, care should be taken when considering color concentrates.
Coloring
When overmolding TPEs, care should be taken when considering color concentrates.
Problem: Non-uniform color
Poor dispersion
https://www.avient.com/sites/default/files/2023-03/CycleWorks Solution Bulletin.pdf
It is widely used
to manufacture films, bags, trays, bottles, and
containers, and it has excellent overall properties
such as impact and tensile strength, clarity,
processability, colorability, and durability.
Some key issues with PCR include degraded
mechanical properties, inconsistent and gray
coloration, unpleasant odors, or missing food
contact approvals.
A dedicated team is able to scientifically investigate
details of the recycling process, understand the
degradation and behavior of polymers, and develop
the right additive and color masterbatches to
increase the performance of PCRs and guarantee
high recyclability of the final article.
https://www.avient.com/sites/default/files/2022-02/ColorMatrix Triple A Brochure.pdf
HANDLING AND USAGE RATES
Triple A is a dispersion which can be
supplied individually or in combination
with other ColorMatrix colorant and
additive technologies.
Universally compatible and
easily combined with ColorMatrix color
formulations.
The additive has no
impact on either color or clarity of
containers and is easily combined with
ColorMatrix color formulations.
https://www.avient.com/sites/default/files/2020-08/colormatrix-optica-toner-dispersions-tech-bulletin-a4.pdf
The PRT product line facilitates precise toner
coloration through superior dispersion, ease of
handling and dosing when compared to traditional
powders.
They are designed to be used separately
but at the same time to control b* and a* color
producing maximum L* color when used at very
low dosing levels in the final product.
This will generate a non-homogeneous
dispersion, resulting in sub-standard coloration
quality in the PET production process.
https://www.avient.com/sites/default/files/2022-05/OnFlex S HF Electrical Housing Case StudyNEW.pdf
THE IMPACT
By replacing traditional sealing materials with non-
halogenated OnFlex S HF TPE, Schneider-Electric NB
(Strömfors) was able to offer its customers several
significant benefits:
• For flexibility in processing, OnFlex S HF TPEs can be
supplied in either natural or pre-colored grades.
Natural
grades can be colored during processing with compatible
products from Avient’s OnColor™ color concentrate line
Additional advantages of these TPEs include:
• Highly flame retardant without the inclusion
of halogens
• Low temperature flexibility
• Excellent processability
• Good abrasion resistance
• Excellent colorability
• Operating temperatures from -50° C to +100° C
• All grades meet UL94-V0 at 1.5 mm
• All grades pass IEC 60695-2-12 Glow Wire Flammability
Index (GWFI) at 960°C
https://www.avient.com/sites/default/files/2021-01/artisan-abs-fingerprint-detector-housing.pdf
FINGERPRINT
DETECTOR
H O U S I N G
• Metallic effect
• In-mold labeling replacement
• Overmold on PC
• Chemical resistance
• Achieved metallic effects without secondary
step of painting
• Customized colors to achieve desired
aesthetics of the design
• Improved cost-effectiveness
• Provided live technical support from concept
to production
Artisan™ AR7300-8001 M Silver Formulation
KEY REQUIRMENTS
WHY AVIENT ?
https://www.avient.com/products/engineered-polymer-formulations/general-engineered-formulations/artisan-pre-colored-thermoplastics-paint-replacement
https://www.avient.com/sites/default/files/2025-04/CCG PVDF Extrusion_Molding Case Study.pdf
WIRE & CABLE OEM
P V D F E X T R U S I O N
• Improve extrusion line speed
• Minimize defects, optimize coefficient of friction (CoF), control
extrusion pressure, and eliminate die drool
• Prevent melt fracture (sharkskin)
• Reduce energy use in processing to achieve cost savings
• Delivered a polyvinylidene fluoride (PVDF)
solution that improved extrusion production times
• Provided application specialists with deep
knowledge of PVDF processing windows (melt
and degradation temperatures) to help boost
overall processing performance
• Enhanced surface aesthetics by reducing friction
and improving flow stability
• Gained a reduction in energy use and offered
added savings for other PVDF applications such
as wire jacketing or tube and pipe extrusion
Colorant Chromatics PVDF Processing Aid
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/products/polymer-additives/processing-enhancement-additives/colorant-chromatics-pvdf-processing-aids
Slide 1: Wire & cable oem
https://www.avient.com/sites/default/files/2021-02/edwards-ballistic-panels-case-study.pdf
EDWARDS DESIGN
& FABRICATION
M O D U L A R M I L I T A R Y
B A L L I S T I C S H E L T E R S
• Blast and bullet resistance to protect soldiers and military
assets in mortar pits, shelters, and guard towers
• Lightweight for portability and quick deployment without
heavy equipment
• Specific colors required to provide visual cover in the field
• Provided UL 752 Level 3 ballistic resistance,
additional protection by layering panels
• Reduced weight by 75% compared to steel,
improved portability over concrete or
sandbags
• Enabled easy installation with common
carpentry tools
• Customized color formulations to meet
needed camouflage without painting
GlasArmor™ Ballistic Resistant Composite
Panels
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2022-09/Waste Mgmt OEM Application Snapshot.pdf
LEADING WASTE
MANAGEMENT OEM
I N D U S T R I A L C O N T A I N E R S
• Eliminate shrinkage and warpage, and control dimensional
aspects of finished parts
• Improve quality assurance metrics and reduce downtime
associated with quality rejections
• Reduce process parameter changes and maintain
consistency when running multiple colors
• Lightweighting solution offering energy savings, process
optimization & extended manufacturing run times
• Preserved industrial waste container quality
while maintaining functional performance and
application dimensional stability
• Provided xpertise in process optimization and
polymer formulation, where material & mold
flow, reducing cycle times, and color harmony
between diverse polymers matter most
• Accelerated speed to market by several weeks
with versatile agnostic product forms (solid and
liquid) coupled with technical service
Hydrocerol™ and Excelite™ Chemical Foaming
Agents (CFA)
KEY REQUIREMENTS
WHY AVIENT?