https://www.avient.com/sites/default/files/2024-12/AVNT Investor Day 2024 Presentation.pdf
The non-GAAP financial measures include: Adjusted Earnings Per Share, Adjusted EBITDA, Adjusted EBITDA margins and
Adjusted free cash flow.
Share gains and geographic penetration
all Avient
Copyright © .
2024 11
Build new
platforms
GROW BUSINESS AT
10% PLUS CAGR
1.
Solutions from across all Avient
3.
https://www.avient.com/sites/default/files/2022-09/Avient Pro Forma Financial Information.pdf
The non-GAAP financial measures include: adjusted Earnings Per Share and adjusted EBITDA.
Avient does not provide reconciliations of forward-looking non-GAAP financial measures, such as outlook for Adjusted EBITDA, Adjusted Earnings Per Share, Adjusted Operating Income and Free Cash Flow, to the most comparable GAAP financial
measures on a forward-looking basis because Avient is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort.
Unless otherwise stated, Adjusted Earnings Per Share and Adjusted EBITDA figures included in this presentation exclude the impact of special items as defined in our quarterly earnings releases.
https://www.avient.com/sites/default/files/2025-02/31307-Certificate-17JUL2024.pdf
Central No. 200 50200
Toluca Mexico
Tossiat, France
Design and Manufacture of Color and Additive Concentrates and Specialty Compounds , 43 Place de la gare Tossiat -
01250 France
Vic (Barcelona),
Design, development and production of color concentrates and additives for plastic and synthetic
fibers
Carretera de Vic a Olot,C-153,
km 5 08500 Masies de Roda
Vonore
Warehouse
Warehouse , 225 Industrial Drive Vonore -
TN 37885 United States
Vonore, TN
Manufacture of Colorants for Plastics , 245 Avecor Drive Vonore - TN
37885 United States
Corporation-
Suwanee, GA
Design and Sampling , 2900 Shawnee Industrial Way
Suwanee - GA 30024 United
NEU Specialty
Engineered
Materials, LLC
Compound and supply of thermoplastics for the medical device industry , 15 Corporate Drive North
Haven - CT 06473 United
PolyOne
Polymers India
Pvt.
F-27 , MIDC
Ranjangaon, Shirur 412 220
Pune India
Page 4 of 4
https://www.avient.com/sites/default/files/resources/PolyOne%2520Proxy%2520Statement%25202016.pdf
Modest Net Debt to
Adjusted EBITDA ratio of 2.1x
(1) Adjusted Earnings Per Share, Adjusted Operating Income, Adjusted EBITDA and Net Debt to Adjusted EBITDA
reported in this proxy statement differ from what is reported under United States Generally Accepted Accounting
Principles (“GAAP”).
Our Board recommends a vote FOR
all the nominees listed below.
All of Mr.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Investor%2520Day%25205-18-15.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 planned closure of certain 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 and 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 and retain relationships
with customers of acquired companies including, without limitation, Spartech Corporation and Accella Performance Materials;
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 materials in jurisdictions where we conduct
business;
Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online in the industries in which we participate;
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 regular quarterly cash dividends and the amounts and timing of any future dividends;
The amount and timing of repurchases of our common shares, if any;
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.
The non-GAAP financial measures
include: adjusted EPS, earnings before interest, tax, depreciation and amortization
(EBITDA), adjusted EBITDA, net debt, Specialty platform operating income, Specialty
platform gross margin percentage, adjusted operating income, return on invested
capital, net debt/ EBITDA, and the exclusion of corporate charges in certain
calculations
Adjusted net cash provided by operating activities is calculated as follows:
2008Y 2009Y 2010Y 2011Y 2012Y 2013Y 2014Y
Net cash provided by operating activities $ 72.5 $ 229.7 $ 140.8 $ 72.5 $ 106.9 $ 109.0 $ 208.4
Dividends and distributions received from joint ventures (32.9) (36.5) (24.2) (6.0) - - -
Pension Cash Contributions 35.9 28.5 37.5 38.1 68.8 69.8 21.6
Adjusted net cash provided by operating activities $ 75.5 $ 221.7 $ 154.1 $ 104.6 $ 175.7 $ 178.8 $ 230.0
Net debt to adjusted EBITDA is calculated as follows:
Twelve Months Ended
(In millions) December 31, 2011 December 31, 2012 December 31, 2013 December 31, 2014
Short-term portion and current portion of
long-term debt $ 3.0 $ 3.8 $ 12.7 $ 61.8
Long-term debt 704.0 703.1 976.2 962.0
Less: Cash and cash equivalents (191.9) (210.0) (365.2) (238.6)
Net Debt $ 515.1 496.9 623.7 785.2
Income before income taxes $ 168.9 $ 83.3 $ 151.0 $ 88.4
Interest expense, net 33.7 50.8 63.5 62.2
Depreciation and amortization 53.2 65.8 108.8 123.9
Equity income from equity affiliates (5.7) - - -
Special items, impact on income before
income taxes (48.1) 55.1 46.3 164.9
Interest expense included in special items - (1.3) (1.9) -
Accelerated depreciation included in special
items - - (12.7) (23.1)
Adjusted EBITDA $ 202.0 $ 253.7 $ 355.0 $ 416.3
Net Debt/Adjusted EBITDA 2.6 2.0 1.8 1.9
Investor Day - May 18 2015 r11
Investor Day - May 18 2015
POL IR Presentation - Investor Day - 5_13_15 Master Version WEBSITE
Investor Day
Forward-Looking Statements
Use of Non-GAAP Measures
Agenda
Introduction��
Slide Number 6
The Leaders Behind the Team
Commodity to Specialty Transformation
Proof of Performance
Mix Shift Highlights Specialty Transformation
Proof of Performance
Successfully Navigating Change Since 2012
Strategy and Execution Drive Results
Well Positioned for Accelerated Growth
Global Color, Additives & Inks��
At a Glance
A Case Study for Transformational Success
Slide Number 18
Accelerating Growth
Who We Are Growing With
Innovation Pipeline Potential
Megatrends Aligned with Key End Markets
Key Initiatives
Platinum Vision
Summary
Global Specialty Engineered Materials��
What We Do
At a Glance
A Case Study for Transformational Success
Slide Number 30
Accelerating Growth
Who We Are Growing With
Innovation Pipeline Potential
Megatrends Aligned with Key End Markets
Key Initiatives
Platinum Vision
Summary
�Designed Structures and Solutions��
At a Glance
Early Progress
A Lot of Work Remains with Tremendous Upside Potential
Innovating with Cross-Business Unit Technologies
Who We Are Growing With
Key Initiatives
Platinum Vision
Summary
Performance Products and Solutions��
At a Glance
What We Have Delivered
Slide Number 50
Accelerating Growth
Who We Are Growing With
Geographic Growth Opportunities
Innovation Pipeline Potential
Megatrends Aligned with Key End Markets
Key Initiatives
Platinum Vision
Summary
PolyOne Distribution��
At a Glance
Slide Number 61
What We Have Delivered
Accelerating Growth
Who We Are Growing With
Megatrends Aligned with Key End Markets
Geographic Growth Opportunities
Going Beyond Distribution
Platinum Vision
Summary
Financial Highlights��
Who We Are Growing With
2014 Awards and Recognitions
2014 Financial Highlights
Proof of Performance & 2015 Targets
Ours is Not a Cost Cutting Story
Financial Strength
Financial Flexibility
Cash to Generate Value
Slide Number 79
Slide Number 80
2020 Platinum Vision��
PolyOne Core Values
Confirmation of Our Strategy
Strategy and Execution Drive Results
Formula for Success
Track Record of Successful Acquisitions
Driving Toward Premier Profitability
2020 Platinum Vision
Platinum Vision: Pathway to Accelerated Growth
Driving Toward a Premium Specialty Multiple
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/2020-10/2020-gravi-tech-processing-guide.pdf
Startup & Shutdown Recommendations
Purge Compound HDPE or HIPS
Recycling
Recycling Gravi-Tech up to 25% is permissible.
All vents need to be vented to atmosphere.
3.
You have the responsibility to conduct full-scale end-product performance testing
to determine suitability in your application, and you assume all risk and liability arising from your use of the information and/or use or handling of any product.
https://www.avient.com/sites/default/files/resources/Specialty%2520Inks%2520-%2520BU%2520Overview.pdf
SOME OF OUR FIRSTS
• Development of the industry’s first
plastisol color mixing system for
screen printing ink
• Introduction of the first automated
ink dispensing equipment
OUR SPECIALTY INKS
• Broadest range of specialty screen
printing inks, including: non-phthalate
PVC plastisol, water-based, silicone,
and non-PVC plastisol
• Ink room solutions including inventory
management software
• Strong expertise in R&D and product
development
• Demonstrated technical service and
color matching capabilities
• Highly efficient manufacturing
operations
• Global manufacturing footprint
and customer reach
OUR BRANDS
• Wilflex is a leading brand of specialty
screen printing inks with a focus on
total ink-room management, providing
the most efficient, cost-effective
environment possible
• Rutland is a leading brand of specialty
screen printing inks for the textile
industry with a strong commitment
to making the screen printing process
easier, more attractive and more
profitable for customers
• Union Ink is a brand dedicated to
providing the broadest range of
innovative and inspired screen printing
inks with the highest opacity mixing
systems in the market
• Printop is a leading brand of textile
screen printing inks in Latin America
including plastisols, water-based,
and discharge inks
• QCM is a trusted brand of cost-
effective, high quality inks for one
of the most recognizable products
in the world, the printed t-shirt
SPECIALTY INKS GLOBAL FOOTPRINT
• Five manufacturing facilities in
Kennesaw, Georgia; Pineville, North
Carolina; Lima, Peru, Shenzhen, China;
and Mumbai, India (JV)
• Warehouse and distribution facilities
in Georgia, North Carolina and Ohio in
the US, Paddock Wood and Widnes,
U.K., and Singapore
• Global presence of distributors located
in over 60 countries
Copyright © 2018, PolyOne Corporation.
You have the responsibility to conduct full-scale end-product performance testing to determine suitability in your application, and you assume all risk and liability arising from
your use of the information and/or use or handling of any product.
https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202018.pdf
The above list of factors is not exhaustive.
Patterson
Chairman, President and CEO
INTRODUCTION
B O B P A T T E R S O N
PolyOne Corporation 7
PolyOne Corporation 8
H I S T O R I C P A S T
S U S T A I N A B I L I T Y A T P O L Y O N E
PolyOne Corporation 9
P E O P L E P R O D U C T S P L A N E T
S A F E T Y F I R S T
PolyOne Corporation 10
1.3
1.1 1.1
0.85
0.65
0.57
0.54
0.97
0.84
0.74 0.74
0.69
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Injuries per 100 Workers
Spartech
Acquisition
T H E P O L Y O N E A C A D E M Y
PolyOne Corporation 11
Leadership Program Participants
2012
2013
2015
86
2016
125
169
216
Campus Hires
2008
2011
25
S U S T A I N A B L Y I M P A C T I N G D I V E R S E E N D M A R K E T S
PolyOne Corporation 12
With emphasis on:
• Light-weighting
• Reducing packaging materials
• Improving recyclability
• Reducing spread of infection
• Facilitating alternative energy
solutions
Building &
9%
Electrical &
P R O D U C T S A N D P O R T F O L I O O P T I M I Z A T I O N
PolyOne Corporation 13
R E I N V E S T G R O WD I V E S T ( D S S )
OUR PLANET
PolyOne Corporation 14
Energy
Saving Projects
26
REDUCTION
REDUCTION
Waste
Reduction Projects
2,557
LSS Projects
Executed
202
PolyOne LSS
Blackbelts
2011
2017 202
2008
147
67
2,557
2008 2017
S U S T A I N A B I L I T Y A T P O L Y O N E
PolyOne Corporation 15
2009 2010 2011 2012 2013 2014 2015 2016* 2017*
A D J U S T E D E P S E X P A N S I O N
C O N S E C U T I V E
Y E A R S
PolyOne Corporation 16
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
$2.06
$2.21
*Pro Forma for sale of DSS
E A R L Y Y E A R S D E F I N E D B Y S P E C I A L T Y
M I X I M P R O V E M E N T
PolyOne Corporation 17
65%
2005 2014
$5M $242M
+ 25%
+ 33%
Specialty OI
% of Operating Income
C O M M O D I T Y P R U N I N G
H E L D O R G A N I C S A L E S F L A T
PolyOne Corporation 18
2010 2011 2012 2013 2014
Acquisitions
Organic
Revenue
I N V E S T M E N T I N COMMERCIAL RESOURCES D R I V I N G R E S U L T S
PolyOne Corporation 19
Largest organic revenue growth
since recession
$2.9 $2.9
$3.2
2015 2016 2017
Revenue in billions of $
Total + 10%
Organic + 7%
S U S T A I N A B L E P A T H T O D O U B L E - D I G I T E P S G R O W T H
PolyOne Corporation 20
Double digit
annual EPS
growth
Expand specialty portfolio
with strategic acquisitions
Innovate and develop new
technologies and services
Repurchase 600K-1M
shares annually
Increase commercial
resources 6-8% annually
Double acquired
company margins
Enhance efficiencies
through Lean Six Sigma
and commercial excellence
5.0%
2006 2017 Platinum Vision Updated Expectations
R A I S I N G T H E B A R
R O I C D R I V E S S H A R E H O L D E R R E T U R N
PolyOne Corporation 21
COMMERCIAL
EXCELLENCE
PolyOne Corporation 22
M I C H A E L G A R R A T T
PolyOne Corporation 23
PolyOne Corporation 24
35% more sales calls
25% more marketing campaigns
1,000 new customers, expanding
customer base by 5%
$1.0B increase in new opportunities
8% reduction of average territory
size, enabling greater
customer focus
20% more prospecting calls
PolyOne Corporation 25
P O L Y O N E
+34%
$3.0 billion
$4.0 billion
A L I G N I N G W I T H T R E N D S F O R G R O W T H
T R A N S P O R T A T I O N P A C K A G I N G H E A L T H C A R E C O N S U M E R
PolyOne Corporation 26
Facilitate
alternative
energy
solutions
Light-
weighting
Reduce
packaging
materials
Improve
recyclability
Reduce
spread of
infection
PolyOne Corporation 27
Customization
55%
M&A
Innovation
Pipeline
Adjacent
Opportunity for
Growth Through New
Innovation comes from
PolyOne Corporation 28
Adjacent
Opportunity for
Growth Through New
New
development
adjacent to our
existing
New development
beyond our current
Development within
our current
markets and
Create new
markets, target
new customer
Service existing
markets and
Adjacent
Opportunity for
Growth Through New
PolyOne Corporation 29
markets and
Create new
markets, target
new customer
Service existing
markets and
Gordon/Polystrand –
Composites
GLS – Thermoplastic Elastomers
ColorMatrix – Liquid
Color & Additives
New
development
adjacent to our
existing
New development
beyond our current
Development within
our current
Adjacent
Opportunity for
Growth Through New
PolyOne Corporation 30
markets and
Create new
markets, target
new customer
Service existing
markets and
Non-Halogen Flame
Retardant Polymers
Barrier Technologies
Fiber Colorants
Advanced Composites
Thermoplastic Elastomers
New
development
adjacent to our
existing
New development
beyond our current
Development within
our current
I N N O V A T I O N P I P E L I N E
PolyOne Corporation 31
PrototypeFrame
Opportunity
Scale-up & Test
Build
Business Case
Commercial
Launch
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
6
2 1
15 4
10
11
4
7
Breakthrough
Platform
Derivative
Number of Projects 26 16 20 15 2 79
Color Technologies – – $335 $670 $410 19 $1,415
Barrier Additives – – $160 $255 – 8 $415
Flame Retardant Polymers – – $200 $50 – 14 $250
Thermoplastic Elastomers – – $410 $80 $30 17 $520
Advanced Composites – – $100 $40 – 8 $140
Specialty Vinyl Formulations – – $25 $75 – 13 $100
Total Addressable Market
($ millions)
– – $1,230 $1,170 $440 $2,840
38%
$20
$52
Research & Development Spend
($ millions)
Vitality Index
% of sales from products launched last 5 years
I N N O V A T I O N D R I V E S E A R N I N G S G R O W T H
PolyOne Corporation 32
A U N I Q U E C U S T O M E R E X P E R I E N C E
Industrial
Design
IQ DESIGN LABS
PolyOne Corporation 33
Material
& Color
Expertise
Manufacturing
Expertise
3
14
Industrial designers
$0
$7M
$4M
$40M
Opportunity funnel New business revenue
3 D P R I N T I N G
B R I N G I N G N E W I D E A S T O L I F E
PolyOne Corporation 34
Enables validation of fit and function
Shortens design cycle and time to market
Avoids tooling rework
Drives innovation
Delivers substantial customer value
LSS CUSTOMER FIRST
PolyOne Corporation 35
Customer Projects
Enables sales growth by building more intimate
customer relationships, giving us insight to customers’
needs, with a service that is not easily replicated
2 85
Lead
Specialists
T H E E V O L V I N G C U S T O M E R R E L A T I O N S H I P
PolyOne Corporation 36
Expanded Path
Traditional Path
Strategic Accounts/
Field Sales
Business
Development
Customer
Service
Web and Social
Media
Inside Sales
PolyOne Corporation 37
Investments in digital and dedicated inside sales to
improve customer experience
80% increase in leads (from 6,000 to 11,000) driven
by website, phone, and online chat
EXPANDED PATH
A D D I N G C U S T O M E R T O U C H P O I N T S
4
21
Inside sellers
$11M
$88M
Inside sales/digital revenue
4 focused end-markets aligned with global
megatrends
5 strategic innovation platforms
30% increase in IQ Design projects
35% increase in revenue from inside sales/digital
≥35% vitality index
PolyOne Corporation 38
I N N O V A T I N G W I T H P O L Y O N E
PolyOne Corporation 39
SEGMENT REVIEWS
POLYONE
DISTRIBUTION
PolyOne Corporation 40
S C O T T H O R N
D I S T R I B U T I O N
E N D M A R K E T S & S U P P L I E R S
PolyOne Corporation 41
23%
22%
Electrical &
Building &
$20
$63
$73
2.9%
5.9%
1.0%
3.0%
5.0%
7.0%
15
25
35
45
55
65
75
Operating Income & Margin2017 Revenue | $1.2 Billion
http://www.avient.com/Pages/VariationRoot.aspx
http://www.avient.com/Pages/VariationRoot.aspx
S E R V I C E I S O U R B U S I N E S S
PolyOne Corporation 42
Uniquely positioned to help our customers grow
their brand and value-added solutions
1.2B
$
Annual Sales
250
Global Employees
24
Strategic
Presence
132
Sales Reps
Warehouse
Locations
6
Service Centers
Dedicated Commercial
Team
S E R V I C E I S O U R B U S I N E S S
S A F E L Y A N D R E S P O N S I B L Y
PolyOne Corporation 43
95% on-time delivery
Customer/Product
Combinations
14,000
Transactions/Month
In-Person
Customer Visits
6,500 27,000
$
PolyOne Corporation 44
37% more sales calls
$65M in new revenue from
inside sales
$400M increase in new
opportunities
24% increase in close rate
51% increase in prospecting calls
119
13211
1315
23
Sales R&D / Technical Marketing
+ 53%
+ 11%
PolyOne Corporation 45
Providing differentiated services that meet the needs
of the changing customer landscape
G R O W T H T H R O U G H I N S I D E S A L E S
$65
PolyOne Distribution Inside Sales
$ in millions
PolyOne Corporation 46
G R O W T H T H R O U G H M U L T I P L E S A L E S
C H A N N E L S
Technical
Field Sales
Key Accounts /
Industry Sales
Inside
Sales
Serving a broad spectrum of customers
Leveraging digital systems to drive awareness and
enhance the customer experience
PolyOne Corporation 47
P O D S A L E S
+27%
$1.2 billion
$1.6 billion
>10% annual increase in revenue from inside sales and
digital with expanded customer touch points
8% annual expansion of sales funnel with best-in-class
service and technical expertise
6-8% compound annual operating income growth
6-7% operating margins
PolyOne Corporation 48
SPECIALTY
ENGINEERED
MATERIALS
PolyOne Corporation 49
M I C H A E L G A R R A T T
S P E C I A L T Y E N G I N E E R E D M A T E R I A L S
PolyOne Corporation 50
Engineered
Formulations
Advanced
Thermoplastic
Elastomers
19%
Electrical &
13%
8%
Building &
S P E C I A L T Y E N G I N E E R E D M A T E R I A L S
Revenue by Region Operating Income & Margin
2 0 1 7 R E V E N U E | $ 6 2 4 M I L L I O N
PolyOne Corporation 51
$21
$57
$76
0.1%
5.1%
9.3%
12.1%
Europe
28%
48%
22%
C A P I T A L I Z I N G O N T H E G L O B A L M A R K E T
PolyOne Corporation 52
Demand for engineered materials is accelerating
Expanding thermoplastic elastomer portfolio to meet
the demands of local consumption
Grow and develop low smoke, non-halogen
technologies to meet increasing European standards
Adding capacity in strategic markets
India Germany
China North America
Establishing a commercial hub in Southeast Asia
PolyOne Corporation 53
PolyOne Corporation 54
13% more sales calls
36% increase in customization
projects
$270M increase in new opportunities
12% reduction in average territory
size, enabling greater
customer focus
50% improvement in speed of
formulation turnaround
Increased commercial headcount
133
17335
39
120
147
+ 30%
+ 11%
PolyOne Corporation 55
S E M
S A L E S
+43%
$610 million
$880 million
PolyOne Corporation 56
Leading Sporting Goods
Manufacturer
Provided Lean Six Sigma training
and led an onsite Black Belt
project to improve product
development cycle times
Reduced
innovation project
cycle times by over
10%
and prototyping by
40%
80%
increased
resulting in
$500k
savings
I N N O V A T I O N S P O T L I G H T :
C O M P O S I T E S
PolyOne Corporation 57
C O M P O S I T E S R E F R E S H E R
PolyOne Corporation 58
Polymer
Composite
Strength
Design Flexibility
Continuous
Fiber
Thermoset
Short Glass
Fiber
Thermoplastics
Continuous Fiber
Long Glass Fiber
Thermoplastics
S T R A T E G I C I N V E S T M E N T H I S T O R Y
PolyOne Corporation 59
Acquired
Polystrand
Installed LFT
production
Avon Lake
Long Fiber
Thermoplastic
(LFT)
Technology
Installed
LFT
Barbastro,
Spain
Acquired
Glasforms
Acquired
Gordon
Thermoplastic
Long Fiber Reinforced Thermoplastics
Continuous Fiber Thermosets
2010 2012 2015 2016 20162009 20122011 2014
C O M P O S I T E S I N T R A N S P O R T A T I O N
PolyOne Corporation 60
W A T E R C R A F TR A I L H E A V Y T R U C K
Bulkheads and Transoms
Ceilings and Hatches
Doors and Cabinetry
Flooring
Door Panels
Side Walls
Flooring & Side Panels
Aerodynamic Fairings
Seat and Bunk
Reinforcements
44
At Acquisition Now
Commercial Resources
0%
At Acquisition Goal
Operating Margins
Test Market
Innovation
Projects
PolyOne Corporation 61
A D V A N C E D C O M P O S I T E S
Long-term investments align with key global megatrends
Light-Weighting Design Flexibility Sustainability
>10% annual increase in customization projects
10% annual expansion of sales funnel, enhancing
portfolio in 4 focus end markets
20% increase in global capacity
12-15% compound annual operating income growth
14-16% operating margins
PolyOne Corporation 62
PERFORMANCE
PRODUCTS
& SOLUTIONS
PolyOne Corporation 63
D O N W I S E M A N
P E R F O R M A N C E P R O D U C T S & S O L U T I O N S
PolyOne Corporation 64
Specialty Vinyl
Solutions
Healthcare
Formulations
Smart Device
Materials
Flame Retardant
Polymers
Building &
Electrical &
1%
Asia
77%
Mexico
P E R F O R M A N C E P R O D U C T S & S O L U T I O N S
Operating Income & MarginRevenue by Region
2 0 1 7 R E V E N U E | $ 7 2 1 M I L L I O N
$40
$33
$56
$77
4.6%
3.6%
7.2%
10.7%
16.0%
10
PolyOne Corporation 65
$886 $668 $773 $721Sales
PolyOne Corporation 66
PolyOne Corporation 67
25% more sales calls
113% increase in innovation
pipeline
$240M increase in new
opportunities
36% increase in
prospecting calls
300 basis point
improvement in
operating margin
57
66
18
37
53
+ 16%
+ 43%
+ 6%
PolyOne Corporation 68
P P & S
S A L E S
+40%
$610 million
$850 million
PolyOne Corporation 69
Leading Wire & Cable
Manufacturer
Provided Lean Six Sigma training
and led on-site Kaizen process
improvements
Reduced
over
400
labor hours
through
reorganized
work area and
floor space
Increased
manufacturing
throughput value
$1.4M
PolyOne Corporation 70
IQ Design is collaborating with a
leading medical device
manufacturer to replace metal
and provide chemical resistance
to solve cracking issues related
to intense cleaning requirements
H E A L T H C A R E I N N O V A T I O N S
I N N O V A T I O N S P O T L I G H T :
F L A M E R E T A R D A N T
P O L Y M E R S
PolyOne Corporation 71
F L A M E R E T A R D A N T
D R I V E R S
PolyOne Corporation 72
Shift toward less toxic solutions
Increased consumer awareness
Focus on environmentally
friendly solutions
New regulatory standards
F L A M E R E T A R D A N T P E R F O R M A N C E S P E C T R U M
PolyOne Corporation 73
Flame Retardant Flame Retardant Flame Retardant
Non-Halogen
No Dripping
Low Smoke
Low Toxicity &
Corrosiveness
H A L O G E N N O N - H A L O G E N L S F O H
( L o w S m o k e a n d F u m e ,
N o n - H a l o g e n )
Non-Halogen
R E G U L A T O R Y C H A N G E S P R O V I D E O P P O R T U N I T Y
L E D S O L U T I O N S
PolyOne Corporation 74
Solutions for rigid molded &
extruded applications
Superior outdoor weather performance
Excellent light dispersion qualities
Formulated to meet stringent
flame-rating regulations
Custom design support to meet demand
8% more sales calls annually
10% annual expansion of sales funnel, including
breakthroughs in healthcare technologies
8-10% compound annual operating income growth
12-14% operating margins
PolyOne Corporation 75
COLOR ADDITIVES
& INKS
PolyOne Corporation 76
M A R K C R I S T
C O L O R , A D D I T I V E S & I N K S
PolyOne Corporation 77
Solid
Colorants
Performance
Additives
Screen
Printing Inks
Liquid
Colorants
27%
14%
Textiles
Building &
8%
Electrical &
Operating Income & MarginRevenue by Region
C O L O R , A D D I T I V E S & I N K S
2 0 1 7 R E V E N U E | $ 8 9 3 M I L L I O N
$104
$139
0.9%
5.5%
12.2%
15.5%
16.0%
18.0%
110
120
130
140
150
PolyOne Corporation 78
Europe
32%
46%
1%
Mexico
Brazil
C A P I T A L I Z I N G O N T H E G L O B A L M A R K E T
PolyOne Corporation 79
Emerging markets driving strong demand for color
and additives
Rapid adoption of food and beverage
packaging additives
Fiber colorants growth focused on expanding
Asia-Pacific market
Increase commercial investments focused on China,
India and Mexico
Expand capacity in China and leverage investments
in India
Recent acquisitions increasing global reach
PolyOne Corporation 80
PolyOne Corporation 81
35% more sales calls
30% increase in customized color
formulations
106% increase in innovation pipeline
$170M increase in new opportunities
20% increase in prospecting calls
9 days or less in design
turnaround time:
best-in-class
Increased commercial investment
301
382
38
43
209
275
+ 27%
+ 13%
+ 32%
PolyOne Corporation 82
C A I S A L E S
+32%
$540 million
$710 million
PolyOne Corporation 83
Developed
inventory
management
framework to
reduce
working
capital by
Printing Equipment
and Supply Manufacturer
Provided Lean Six Sigma training
and conducted process mapping
exercises to identify key
improvement opportunities
Optimize
manufacturing:
45%
improvement in
assembly process,
25%
cycle time
A D D I T I V E & C O L O R A N T
T E C H N O L O G I E S
PolyOne Corporation 84
B A R R I E R T E C H N O L O G I E S
Active oxygen scavenging
additive in the bottle wall
Evolving technology for active
oxygen scavenging additive in
the bottle cap
Amosorb™ HyGuard™
UV and visible light blocking
additive to prevent degradation
of product
Lactra™ SX
Market leader in oxygen, light and UV barrier solutions for the PET bottle market
PolyOne Corporation 85
S T R A T E G I C A D D R E S S A B L E M A R K E T > $ 2 0 0 M
F I B E R C O L O R A N T S
Eliminate waste water associated
with conventional dyeing
Help meet sustainability targets
for brand owners
Enable “uncolored fiber” producers
to bypass dyehouse
Strategic addressable market >$300M
PolyOne Corporation 86
S T R A T E G I C I N V E S T M E N T H I S T O R Y
PolyOne Corporation 87
Thermoplastic
2011 2015 2018
Acquired
ColorMatrix
Acquired
Magenta
Acquired
IQAP
$10
$45
Revenue from Fiber Color
Invested in
development
of liquid fiber
colorant
technology
Expanded
solid
colorant
offerings
38
43
At Acquisition Now
Commercial Resources
Innovation
Projects
PolyOne Corporation 88
I N V E S T I N G F O R T H E F U T U R E
Nearly 900 projects identified
Gaining sustainable momentum & building trust with consumers
Sales Funnel
$125M
“We are unleashing the power of human potential, all
to advance the game.
Leverage
PolyOne’s
global reach
Phase 1 Phase 2
Phase 3
18-20%
operating
margins
Invest in
commercial
resources
I N V E S T - T O - G R O W P R O O F O F P E R F O R M A N C E
PolyOne Corporation 98
Commercial
Operating
Income
Operating
243
335
$36
$90
Established Acquisitions
(> 7 years)
+ 40% + 150% + 900 bps
I N V E S T - T O - G R O W P R O O F O F P E R F O R M A N C E
PolyOne Corporation 99
Commercial
Operating
Income (millions)
53
109
187
214
3
12
$12
$45
$22
$42
$2
Acquisition #1
(10 years)
Acquisition #3
(7 years)
Acquisition #2
(9 years)
EBITDA
Multiple
10.5x
3.0x
11.1x
7.6x
4.9x
2.8x
23%
17%
21%
Return on Sales
I N V E S T - T O - G R O W D R I V I N G T H E F U T U R E
PolyOne Corporation 100
Commercial
Operating
Income
Operating
44
65
$0 $0
0% 0%
Advanced Composites
I N V E S T - T O - G R O W D R I V I N G T H E F U T U R E
PolyOne Corporation 101
Commercial
Operating
Income
Operating
96
141
$16
$18
$36
11% 12%
18-20%
Recent Color Acquisitions
PolyOne Corporation 102
Average
Company Size
# of
Possibilities
Rationale
250
• Local to regional footprint
• Niche technology focus
• Concentrated customer base
$50M–$200M 150
• Regional to global footprint
• 1–3 specialty technologies
• Diversified customer base
>$200M 30
• Global footprint with local service
• Diverse specialty technologies
• Highly diversified customer & market
portfolio
S T R O N G P I P E L I N E
D R I V E N B Y F R A G M E N T E D M A R K E T
S U M M A R Y
PolyOne Corporation 103
Proven track record with specialty acquisitions using
invest-to-grow strategy
Our approach to integration differentiates PolyOne in
a competitive M&A market
Trusted brand and reputation
Buyer of choice
Robust pipeline with a range of opportunities that fit
our strategy
FINANCIAL
REVIEW
B R A D R I C H A R D S O N
PolyOne Corporation 104
PolyOne Corporation 105
A D J U S T E D E P S E X P A N S I O N
2009 2010 2011 2012 2013 2014 2015 2016* 2017*
C O N S E C U T I V E
Y E A R S
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
$2.06
$2.21
*Pro Forma for sale of DSS
PolyOne Corporation 106
S T R A T E G I C C A S H D E P L O Y M E N T
ORGANIC GROWTH
Investing in R&D and
capacity
11
Maintenance
40%
Strategic Growth
Investments
60%
Capital Expenditures
M&A OPPORTUNITIES
Continued pursuit of strategic bolt
on acquisitions that expand
specialty offerings
2
SHAREHOLDER RETURN
Dividends and share buybacks3
Over $400
million
M&A Spending
Since 2014
$809
million
Share Repurchases
2011-Q1 2018
60%
Increase in annual
dividend over next three
years
2011 2013 2015 2017
“Where we were” “Where we are”
ROIC 5.0% 14.0%
Operating Income % of Sales
Color, Additives & Inks 1.7% 15.5%
Specialty Engineered Materials 1.1% 12.1%
Performance Products &
Solutions 4.3% 10.7%
Distribution 2.6% 6.3%
P R O O F O F P E R F O R M A N C E
E X P A N D I N G M A R G I N S & R O I C
PolyOne Corporation 107
I N V E S T M E N T I N COMMERCIAL RESOURCES D R I V I N G R E S U L T S
PolyOne Corporation 108
Largest organic revenue growth
since recession
$2.9 $2.9
$3.2
2015 2016 2017
Revenue in billions of $
Total + 10%
Organic + 7%
S U S T A I N A B L E P A T H T O D O U B L E - D I G I T E P S G R O W T H
PolyOne Corporation 109
Double digit
annual EPS
growth
Expand specialty portfolio
with strategic acquisitions
Innovate and develop new
technologies and services
Repurchase 600K-1M
shares annually
Increase commercial
resources 6-8% annually
Double acquired
company margins
Enhance efficiencies
through Lean Six Sigma
and commercial excellence
R O I C D R I V E S S H A R E H O L D E R R E T U R N
PolyOne Corporation 110
R O I C D R I V E S S H A R E H O L D E R R E T U R N
PolyOne Corporation 111
$570
$1,650 $1,750
$2,000
ROIC
Invested Capital
Improving ROIC + Expanding Invested Capital = Outperforming the Market
CONCLUSION
B O B P A T T E R S O N
PolyOne Corporation 112
1
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(Dollars in millions, except per share data)
Senior management uses comparisons of adjusted net income from continuing operations attributable to PolyOne shareholders and diluted adjusted earnings per share (EPS)
from continuing operations attributable to PolyOne shareholders, excluding special items, to assess performance and facilitate comparability of results.
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Pune, India 77.
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