https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520RW%2520Baird%2520Conference%2520w%2520non-GAAP.pdf
In certain cases throughout this presentation
S&P 500
-150%
-50%
50%
150%
250%
350%
450%
550%
POL S&P 500
All time high of
$43.34
July 1st, 2014
PolyOne Corporation Page 9
2006 2014 YTD 2015
“Where we were” “Where we are” Target
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 14.9% 12 – 16%
Global Specialty Engineered
Materials
1.1% 12.1% 12 – 16%
Designed Structures & Solutions -- 7.6% 8 – 10%
Performance Products &
Solutions
5.5% 8.1% 9 – 12%
Distribution 2.6% 6.2% 6 – 7.5%
2) Specialty Platform % of
Operating Income
6.0% 65% 65 – 75%
3) ROIC* 5.0% 10.6% 15%
4) Adjusted EPS Growth N/A 37%
Double Digit
Expansion
Proof of Performance & 2015 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 10
32% Adjusted EPS CAGR from 2011
2015 EPS: $2.50
2011 EPS: $0.82
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 Growth
PolyOne Corporation Page 11
Innovation Drives Earnings Growth
*Percentage of Specialty Platform revenue from products introduced in last five years
$20
$53
2006 2013
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
31%
2006 2013
Specialty Platform
Gross Margin %
20%
43%
2006 2013
Specialty Vitality Index Target ≥ 35%
Vitality Products
+ 700 to 1000 bps
PolyOne Corporation Page 12
Prototype Frame
Opportunity
Scale-up &
Test Market
Build
Business Case
Commercial
Launch
Phase
1
Phase
2
Phase
3
Phase
4
Phase
5
4
11
5
10
6
9
3 4 2
15
9
1
10
4
Breakthrough
Platform
Derivative
A Rich Pipeline of Opportunity
Number of Projects 25 14 19 17 18 93
Addressable Market
($ millions)
TBD TBD $800 $450 $450 $1,700
PolyOne Corporation Page 13
Megatrends Aligned with Key End Markets
Decreasing
Dependence
on Fossil
Fuels
Protecting
the
Environment
Improving
Health and
Wellness
Megatrend End Markets
Globalizing
and
Localizing
Health &
Wellness
Transportation
Packaging
Consumer
PolyOne Corporation Page 14
60%
100%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2014
Pension Funding**
As of September 30, 2014
Debt Maturities & Pension Funding – 9/30/14
Net Debt / EBITDA* = 1.7x
$48
$317
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Debt Maturities
As of September 30, 2014
($ millions)
Coupon Rates: 7.500% 7.375% 5.250%
** includes US-qualified pension plans only *TTM 9/30/2014
PolyOne Corporation Page 15
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
Expanding our sales, marketing,
and technical capabilities
Targets that expand our:
• Specialty offerings
• End market presence
• Geographic footprint
• Operating Margin
Synergy opportunities
Adjacent material solutions
Repurchased 1.5 million shares in
Q3 2014
Repurchased 9.7 million
shares since early 2013
10.3 million shares are
available for
repurchase under the
current authorization
Organic
Growth
Acquisitions
Share
Repurchases
Dividends
Investing in operational and
LSS initiatives (including
synergy capture)
Manufacturing alignment
$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
PolyOne Corporation Page 16
PolyOne Core Values
Innovation
Collaboration
Excellence
PolyOne Corporation Page 17
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520KeyBanc%2520Conference%2520w%2520nonGAAP.pdf
In certain cases throughout this presentation
S&P 500
-150%
-50%
50%
150%
250%
350%
450%
550%
POL S&P 500
All time high of
$43.34
July 1st, 2014
PolyOne Corporation Page 9
2006 2014 YTD 2015
“Where we were” “Where we are” Target
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 15.2% 12 – 16%
Global Specialty Engineered
Materials
1.1% 11.8% 12 – 16%
Designed Structures & Solutions -- 7.1% 8 – 10%
Performance Products &
Solutions
5.5% 8.0% 9 – 12%
Distribution 2.6% 6.0% 6 – 7.5%
2) Specialty Platform % of
Operating Income
6.0% 66% 65 – 75%
3) ROIC* 5.0% 9.9% 15%
4) Adjusted EPS Growth N/A 40%
Double Digit
Expansion
Proof of Performance & 2015 Goals
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
(Est. in 2012)
PolyOne Corporation Page 10
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
PolyOne Corporation Page 11
Innovation Drives Earnings Growth
*Percentage of Specialty Platform revenue from products introduced in last five years
$20
$53
2006 2013
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index
Progression*
14.3%
30.7%
2006 2013
Specialty Platform
Gross Margin %
19.5%
43.0%
2006 2013
Specialty Vitality Index Target ≥ 35%
PolyOne Corporation Page 12
Prototype Frame
Opportunity
Scale-up &
Test Market
Build
Business Case
Commercial
Launch
Phase
1
Phase
2
Phase
3
Phase
4
Phase
5
4
11
5
10
6
9
3 4 2
15
9
1
10
4
Breakthrough
Platform
Derivative
A Rich Pipeline of Opportunity*
Number of Projects 25 14 19 17 18 93
Addressable Market
($ millions)
TBD TBD $800 $450 $450 $1,700
*Pipeline as of May 29, 2014 as presented during our Innovation Day
PolyOne Corporation Page 13
Megatrends Aligned with Key End Markets
Decreasing
Dependence
on Fossil
Fuels
Protecting
the
Environment
Improving
Health and
Wellness
Megatrend End Markets
Globalizing
and
Localizing
Health &
Wellness
Transportation
Packaging
Consumer
PolyOne Corporation Page 14
60%
100%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2014
Pension Funding**
As of June 30, 2014
Debt Maturities & Pension Funding – 6/30/14
Net Debt / EBITDA* = 1.8x
$48
$317
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Debt Maturities
As of June 30, 2014
($ millions)
Coupon Rates: 7.500% 7.375% 5.250%
** includes US-qualified pension plans only *TTM 6/30/2014
PolyOne Corporation Page 15
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
Targets that expand our:
• Specialty offerings
• End market presence
• Geographic footprint
• Operating Margin
Synergy opportunities
Adjacent material solutions
Repurchased 1.8 million shares in
Q2 2014
Repurchased 8.2 million
shares since early 2013
11.8 million shares are
available for
repurchase under the
current authorization
Organic
Growth
Acquisitions
Share
Repurchases
Dividends
Investing in operational and
LSS initiatives (including
synergy capture)
Manufacturing alignment
PolyOne Corporation Page 16
PolyOne Core Values
Innovation
Collaboration
Excellence
PolyOne Corporation Page 17
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/2021-06/plastisol-storage-handling-technical-bulletin.pdf
Utilizing separated plastisol from
the bottom of the container will result in a part
that is harder than normal and may even exhibit
brittleness in severe cases of separation.
https://www.avient.com/sites/default/files/2022-02/Sustainability ESG Disclosures_Carbon Black.pdf
Sensitization No cases of sensitization in humans has been reported.
https://www.avient.com/sites/default/files/2022-12/Mevopur Laser Marking Additives Application Bulletin.pdf
In some cases, additives are required to
achieve the desired marking quality by enabling
the plastic to absorb laser energy and/or improve
the laser marking contrast.
https://www.avient.com/sites/default/files/2020-10/excelite-im-product-bulletin-americas-1.pdf
In
fact, case studies have shown scrap rates can be
reduced from 30% to less than 1%.
https://www.avient.com/sites/default/files/2024-03/Terms and Conditions of Sale for Pakistan.pdf
In the event of Buyer’s breach or failure to perform, Seller
shall be entitled to (but is not required to) recover from Buyer, in
addition to any other damages caused by such action: (i) in the case
of Products produced specifically for Buyer or which reasonably
cannot be resold by Seller to a third party, the price of such Products
as quoted in Seller’s order confirmation; or (ii) in the case of
Products which can be resold by Seller, damages equal to fifty
percent (50%) of the price for the Products as quoted in Seller’s
order confirmation, as liquidated damages.
9.
Except in the case of a force
majeure, if not satisfied with Seller’s determination, Buyer as its
sole remedy shall have a right to terminate this contract without
further obligation upon: (i) 10 calendar days’ written notice; and (ii)
payment for all Product received to date.
14.
In case Buyer is
required to disclose the information by virtue of a court order or
statutory duty, Buyer shall immediately inform Seller and
reasonably cooperate with Seller should it seek to obtain a
protective order.
https://www.avient.com/sites/default/files/2020-10/tpe-injection-molding-guide.pdf
In this case, the spiral flow test was conducted using two different injection speeds
(3 in/sec and 5 in/sec).
In cases where
there is a long draw core, a fountain-type bubbler may be beneficial.
In these cases,
robotic sprue pickers, runner keepers, or air ejection may be required.
https://www.avient.com/sites/default/files/2024-12/Terms and Conditions of Sale for Spain.pdf
In the event of
Buyer’s breach or failure to perform, Seller shall be
entitled to (but is not required to) recover from Buyer, in
addition to any other damages caused by such action: (i) in
the case of Products produced specifically for Buyer or
which reasonably cannot be resold by Seller to a third
party, the price of such Products as quoted in Seller’s order
confirmation; or (ii) in the case of Products which can be
resold by Seller, damages equal to fifty percent (50%) of
the price for the Products as quoted in Seller’s order
confirmation, as liquidated damages.
9.
Except in the case of a
force majeure, if not satisfied with Seller’s determination,
Buyer as its sole remedy shall have a right to terminate the
contract without further obligation upon: (i) 10 calendar
days’ written notice; and (ii) payment for all Product
received to date.
14.
In case Buyer
is required to disclose the information by virtue of a court
order or statutory duty, Buyer shall immediately inform
Seller and reasonably cooperate with Seller should it seek
to obtain a protective order.
https://www.avient.com/sites/default/files/2024-09/Terms and Conditions of Sale for Poland.pdf
In the event of Buyer’s
breach or failure to perform, Seller shall be entitled to (but
is not required to) recover from Buyer, in addition to any
other damages caused by such action: (i) in the case of
Products produced specifically for Buyer or which
reasonably cannot be resold by Seller to a third party, the
price of such Products as quoted in Seller’s order
confirmation; or (ii) in the case of Products which can be
resold by Seller, damages equal to fifty percent (50%) of
the price for the Products as quoted in Seller’s order
confirmation, as liquidated damages.
8.
Except in the case of
a force majeure, if not satisfied with Seller’s
determination, Buyer as its sole remedy shall have a right
to terminate the sale contract to which these Terms apply
without further obligation upon: (i) 10 calendar days’
written notice; and (ii) payment for all Product received to
date.
13.
In case Buyer is
required to disclose the information by virtue of a court
order or statutory duty, Buyer shall immediately inform
Seller and reasonably cooperate with Seller should it seek
to obtain a protective order.