https://www.avient.com/knowledge-base/article/chemically-resistant-polymers-next-generation-devices?ind[]=21537
Watch our free on-demand webinar to gain a better understanding of the chemical resistance challenges and the polymer materials that can help your next-generation designs overcome them.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Credit%2520Suisse%2520-%2520June%25202015.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
The final amount of charges resulting from the planned North American asset realignment and the Company’s ability to realize anticipated
savings and operational benefits from the asset realignment;
Our ability to achieve the strategic and other objectives relating to the acquisition of Spartech Corporation, including any expected synergies;
Our ability to successfully integrate Spartech and achieve the expected results of the acquisition, including, without limitation, the acquisition
being accretive;
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 in the markets where we conduct business;
Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online;
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, employee productivity goals, and an inability to raise or sustain prices for products or services;
An inability to raise or sustain prices for products or services;
An inability to maintain appropriate relations with unions and employees;
The inability to achieve expected results from our acquisition activities;
Our ability to continue to pay cash dividends;
The amount and timing of repurchases of our common shares, if any; and
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.
S&P 500
PolyOne Corporation Page 9
2006 Q1 2015 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 16.2% 20%+
Global Specialty Engineered
Materials 1.1% 16.3% 20%+
Designed Structures & Solutions 1.4% (2012) 2.7% 12 – 14%
Performance Products &
Solutions 5.5% 6.5% 10 – 12%
Distribution 2.6% 5.9% 6.5 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 69% 80%+
3) ROIC 5.0% 11.4% 15%
4) Adjusted EPS Growth N/A
22 Consecutive
Quarters of
EPS Growth
Double Digit
Expansion
Proof of Performance & 2020 Goals
PolyOne Corporation Page 10
Platinum Vision: Pathway to Accelerated Growth
Organic
Sales Growth
Margin
Expansion
Share
Repurchases
Acquisitions
PolyOne Corporation Page 11
Innovation Drives Earnings Growth
*Percentage of Specialty Platform revenue from products introduced in last five years
$20
$53
2006 2014
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
27%
2006 2014
Specialty Platform
Gross Margin %
20%
44%
2006 2014
Specialty Vitality Index Target ≥ 35%
PolyOne Corporation Page 12
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 13
Prototype Frame
Opportunity
Scale-up &
Test Market
Build
Business Case
Commercial
Launch
Phase
1
Phase
2
Phase
3
Phase
4
Phase
5
6
9
7
3
5
12
5 3 2
8
4
2
4
3
1
Breakthrough
Platform
Derivative
A Rich Pipeline of Opportunity
Number of Projects 14 8 18 12 22 74
Addressable Market
($ millions) $700 $600 $600 $1,900
PolyOne Corporation Page 14
60%
98%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 Q1 2015
Pension Funding**
As of March 31, 2015
Debt Maturities & Pension Funding
Net Debt / EBITDA* = 2.1x
$49
$317
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Debt Maturities
As of March 31, 2015
($ millions)
Coupon Rate: 7.500% 7.375% 5.250%
** includes US-qualified pension plans only *TTM 3/31/2015
PolyOne Corporation Page 15
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 $0.24
$0.32
$0.40
$0.10
$0.20
$0.30
$0.40
$0.50
2011 2012 2013 2014 2015
Annual Dividend
Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material
solutions
Repurchased over
500k shares in Q1
2015
Repurchased 11.8
million shares since
early 2013
8.2 million shares are
available for
repurchase under the
current authorization
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?
Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt
extinguishment costs; employee separation costs resulting from personnel reduction programs, plant phase-in costs, executive separation agreements; asset impairments; mark-to-market
adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties, remediation costs and related
insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and
losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of
the performance period; unrealized gains and losses from foreign currency option contracts; one-time, non-recurring items; and the effect of changes in accounting principles or other such
laws or provisions affecting reported results.
(2) Tax adjustments include the net tax expense (benefit) from one-time income tax items and deferred income tax valuations allowance adjustments.
https://www.avient.com/news/polyone-announces-strong-fourth-quarter-and-full-year-2013-results
Pension and other post-retirement mark-to-market adjustment
Legal related (costs) gains
Gain on sale of business
https://www.avient.com/sites/default/files/2021-04/avnt-fourth-quarter-2020-news-release.pdf
NEWS RELEASE
FOR IMMEDIATE RELEASE
Avient Announces Fourth Quarter and Full Year 2020 Results
and Provides Guidance for 2021
Fourth Quarter Results
• GAAP EPS from continuing operations of $0.81 compared to $0.08 in the prior year quarter
• Record fourth quarter adjusted EPS of $0.52 increased 73% compared to $0.30 pro forma*
in the prior year, driven by strong organic revenue growth in all segments, improved
operating margins and synergy capture from the Clariant Masterbatch acquisition
• Increased dividend for the 10th consecutive year to $0.85 a share on an annualized basis
Full Year Results
• Completed transformational Clariant Masterbatch acquisition and renamed the company as
Avient
• GAAP EPS from continuing operations of $1.46 compared to $0.97 in the prior year
• Adjusted EPS increased 11% to $1.93 pro forma, on strength in healthcare, packaging and
consumer end markets
• Specialty Engineered Materials (SEM) segment delivered record operating income of $94
million, driven by growth in composites and demand for outdoor high performance
applications
CLEVELAND – February 9, 2021 – Avient Corporation (NYSE: AVNT), a leading provider of
specialized and sustainable material solutions, today reported its full year and fourth quarter
results for 2020.
I am extremely pleased with our record fourth quarter results, as every segment and end
market grew over the prior year fourth quarter.
Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1)
Net income from continuing operations attributable to Avient shareholders $ 74.2 $ 0.81 $ 6.4 $ 0.08
Special items, after tax (Attachment 3) (26.7) (0.29) 19.9 0.26
Adjusted net income / EPS - excluding special items $ 47.5 $ 0.52 $ 26.3 $ 0.34
(1) Per share amounts may not recalculate from figures presented herein due to rounding
Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1)
Net income from continuing operations attributable to Avient shareholders $ 132.0 $ 1.46 $ 75.5 $ 0.97
Special items, after tax (Attachment 3) 24.8 0.27 55.8 0.72
Adjusted net income / EPS - excluding special items $ 156.8 1.73 $ 131.3 1.69
(1) Per share amounts may not recalculate from figures presented herein due to rounding
6
Attachment 2
Condensed Consolidated Statements of Income (Unaudited)
Three Months Ended
Year Ended
Sales $ 997.0 $ 658.6 $ 3,242.1 $ 2,862.7
Cost of sales 744.1 505.3 2,457.8 2,205.5
Gross margin 252.9 153.3 784.3 657.2
Selling and administrative expense 187.9 132.8 595.0 500.4
Operating income 65.0 20.5 189.3 156.8
Interest expense, net (19.3) (11.9) (74.6) (59.5)
Other income, net 11.7 10.7 24.3 12.1
Income from continuing operations before income taxes 57.4 19.3 139.0 109.4
Income tax benefit (expense) 17.3 (12.9) (5.2) (33.7)
Net income from continuing operations 74.7 6.4 133.8 75.7
Income (loss) from discontinued operations, net of income taxes 0.1 458.9 (0.4) 513.1
Net income 74.8 465.3 133.4 588.8
Net income attributable to noncontrolling interests (0.5) — (1.8) (0.2)
Net income attributable to Avient common shareholders $ 74.3 $ 465.3 $ 131.6 $ 588.6
Earnings per share attributable to Avient common shareholders - Basic:
Continuing operations $ 0.81 $ 0.08 $ 1.47 $ 0.98
Discontinued operations — 5.97 (0.01) 6.64
Total $ 0.81 $ 6.05 $ 1.46 $ 7.62
Earnings per share attributable to Avient common shareholders - Diluted:
Continuing operations $ 0.81 $ 0.08 $ 1.46 $ 0.97
Discontinued operations — 5.92 (0.01) 6.61
Total $ 0.81 $ 6.00 $ 1.45 $ 7.58
Cash dividends declared per share of common stock $ 0.2125 $ 0.2025 $ 0.8200 $ 0.7875
Weighted-average shares used to compute earnings per common share:
Basic 91.4 76.9 90.1 77.2
Diluted 92.1 77.5 90.6 77.7
7
Attachment 3
Summary of Special Items (Unaudited)
Special items (1)
Three Months Ended
Year Ended
Cost of sales:
Restructuring costs, including accelerated depreciation $ (1.8) $ — $ (4.3) $ 0.3
Environmental remediation costs (1.1) 0.3 (20.4) (10.1)
Reimbursement of previously incurred environmental costs — 0.5 8.7 4.5
Inventory fair market value step-up expense 1.2 — (9.3) (2.0)
Impact on cost of sales (1.7) 0.8 (25.3) (7.3)
Selling and administrative expense:
Restructuring, legal and other (13.0) (4.4) (22.5) (18.6)
Acquisition earn-out adjustments 1.5 (15.7) (1.0) (36.4)
Acquisition related costs (1.4) (5.3) (24.9) (9.4)
Impact on selling and administrative expense (12.9) (25.4) (48.4) (64.4)
Impact on operating income (14.6) (24.6) (73.7) (71.7)
Costs related to committed financing in interest expense, net — — (10.1) —
Other income, net 0.1 0.1 0.4 0.5
Pension settlement/curtailment gains and mark-to-market adjustment 10.3 9.5 17.2 9.5
Impact on income from continuing operations before income taxes (4.2) (15.0) (66.2) (61.7)
Income tax benefit (expense) on above special items (1.3) (0.4) 14.1 11.1
Tax adjustments(2) 32.2 (4.5) 27.3 (5.2)
Impact of special items on net income from continuing operations
attributable to Avient Shareholders $ 26.7 $ (19.9) $ (24.8) $ (55.8)
Diluted earnings per common share impact of special items on net income
from continuing operations attributable to Avient shareholders $ 0.29 $ (0.26) $ (0.27) $ (0.72)
Weighted average shares used to compute adjusted earnings per share:
Diluted 92.1 77.5 90.6 77.7
(1) Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt
extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel
reduction programs, plant realignment costs, executive separation agreements; asset impairments; settlement gains or losses and mark-to-
market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental
remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and
losses on the divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or
disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the
commencement of the performance period; one-time, non-recurring items; and the effect of changes in accounting principles or other such
laws or provisions affecting reported results
https://www.avient.com/sites/default/files/2021-10/avnt-q3-2021-news-release.pdf
The company noted customer demand for its products continues to be robust across all end
markets and regions, as revenue increased 32% to $1.2 billion in the third quarter and adjusted
EPS increased 52% to $0.70.
As such, we
look forward to pursuing other acquisition opportunities and/or repurchasing Avient shares in the
open market in the future.”
Three Months Ended
September 30, 2021
Three Months Ended
September 30, 2020
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income from continuing operations attributable to Avient shareholders $ 52.9 $ 0.57 $ 1.7 $ 0.02
Special items, after tax (Attachment 3) 11.7 0.13 40.3 0.44
Adjusted net income / EPS - excluding special items $ 64.6 $ 0.70 $ 42.0 $ 0.46
Nine Months Ended
September 30, 2021
Nine Months Ended
September 30, 2020
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income from continuing operations attributable to Avient shareholders $ 201.0 $ 2.18 $ 57.8 $ 0.64
Special items, after tax (Attachment 3) 26.0 0.28 51.5 0.57
Adjusted net income / EPS - excluding special items $ 227.0 $ 2.46 $ 109.3 $ 1.21
8
Attachment 2
Avient Corporation
Condensed Consolidated Statements of Income (Unaudited)
(In millions, except per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021 2020 2021 2020
Sales $ 1,219.8 $ 924.5 $ 3,617.3 $ 2,245.1
Cost of sales 964.4 714.3 2,770.8 1,713.7
Gross margin 255.4 210.2 846.5 531.4
Selling and administrative expense 176.7 176.7 539.3 407.1
Operating income 78.7 33.5 307.2 124.3
Interest expense, net (19.0) (29.7) (57.8) (55.3)
Other income, net 1.4 1.5 4.1 12.6
Income from continuing operations before income taxes 61.1 5.3 253.5 81.6
Income taxes (8.5) (2.7) (51.8) (22.5)
Net income from continuing operations 52.6 2.6 201.7 59.1
Loss from discontinued operations, net of income taxes — — — (0.5)
Net income 52.6 2.6 201.7 58.6
Net loss (income) attributable to noncontrolling interests 0.3 (0.9) (0.7) (1.3)
Net income attributable to Avient common shareholders $ 52.9 $ 1.7 $ 201.0 $ 57.3
Earnings per share attributable to Avient common shareholders - Basic:
Continuing operations $ 0.58 $ 0.02 $ 2.20 $ 0.64
Discontinued operations — — — —
Total $ 0.58 $ 0.02 $ 2.20 $ 0.64
Earnings per share attributable to Avient common shareholders - Diluted:
Continuing operations $ 0.57 $ 0.02 $ 2.18 $ 0.64
Discontinued operations — — — (0.01)
Total $ 0.57 $ 0.02 $ 2.18 $ 0.63
Cash dividends declared per share of common stock $ 0.2125 $ 0.2025 $ 0.6375 $ 0.6075
Weighted-average shares used to compute earnings per
common share:
Basic 91.4 91.5 91.3 89.7
Diluted 92.2 91.9 92.1 90.7
9
Attachment 3
Avient Corporation
Summary of Special Items (Unaudited)
(In millions, except per share data)
Special items (1) Three Months Ended
September 30,
Nine Months Ended
September 30,
2021 2020 2021 2020
Cost of sales:
Restructuring costs, including accelerated depreciation and
amortization $ (5.3) $ (1.3) $ (8.6) $ (2.5)
Environmental remediation costs (9.4) (15.8) (22.4) (19.3)
Reimbursement of previously incurred environmental costs — — 4.5 8.7
Acquisition related costs (2.6) (10.5) (1.2) (10.5)
Impact on cost of sales (17.3) (27.6) (27.7) (23.6)
Selling and administrative expense:
Restructuring, legal and other — (4.2) (1.7) (9.5)
Acquisition earn-out adjustments — (1.5) — (2.5)
Acquisition related costs (2.7) (7.1) (7.2) (23.5)
Impact on selling and administrative expense (2.7) (12.8) (8.9) (35.5)
Impact on operating income (20.0) (40.4) (36.6) (59.1)
Costs related to committed financing in interest expense, net — (9.6) — (10.1)
Other income, net 0.1 — 0.1 0.3
Pension settlement gain and mark-to-market adjustment — — — 6.9
Impact on income from continuing operations before income taxes (19.9) (50.0) (36.5) (62.0)
Income tax benefit on above special items 4.6 12.7 8.9 15.4
Tax adjustments(2) 3.6 (3.0) 1.6 (4.9)
Impact of special items on net income from continuing operations
attributable to Avient Shareholders $ (11.7) $ (40.3) $ (26.0) $ (51.5)
Diluted earnings per common share impact $ (0.13) $ (0.44) $ (0.28) $ (0.57)
Weighted average shares used to compute adjusted earnings per share:
Diluted 92.2 91.9 92.1 90.7
(1) Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt
extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel
reduction programs, plant realignment costs, executive separation agreements; asset impairments; settlement gains or losses and mark-to-
market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation
costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the
divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or disposals; results
of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the
performance period; one-time, non-recurring items; and the effect of changes in accounting principles or other such laws or provisions affecting
reported results
https://www.avient.com/sites/default/files/resources/Wells%2520Fargo%2520Conference%2520-%2520IR%2520Presentation%25205-6-2015%2520-%2520wNon%2520GAAP%2520and%2520Appendix.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
The final amount of charges resulting from the planned North American asset realignment and the Company’s ability to realize anticipated
savings and operational benefits from the asset realignment;
Our ability to achieve the strategic and other objectives relating to acquisitions, including any expected synergies;
Our ability to successfully integrate acquired companies and achieve the expected results of the acquisitions, including, without limitation, the
acquisitions being accretive;
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 in the markets where we conduct business;
Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online;
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, employee productivity goals, and an inability to raise or sustain prices for products or services;
An inability to raise or sustain prices for products or services;
An inability to maintain appropriate relations with unions and employees;
The inability to achieve expected results from our acquisition activities;
Our ability to continue to pay cash dividends;
The amount and timing of repurchases of our common shares, if any; and
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.
S&P 500
PolyOne Corporation Page 9
2006 Q1 2015 2015 Target
“Where we were” “Where we are” (Est. in 2012)
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 16.2% 12 – 16%
Global Specialty Engineered
Materials 1.1% 16.3% 12 – 16%
Designed Structures & Solutions 1.4% (2012) 2.7% 8 – 10%
Performance Products &
Solutions 5.5% 6.5% 9 – 12%
Distribution 2.6% 5.9% 6 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 69% 65 – 75%
3) ROIC 5.0% 11.4% 15%
4) Adjusted EPS Growth N/A 5% Double Digit
Expansion
Proof of Performance & 2015 Goals
PolyOne Corporation Page 10
Innovation Drives Earnings Growth
*Percentage of Specialty Platform revenue from products introduced in last five years
$20
$53
2006 2014
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
27%
2006 2014
Specialty Platform
Gross Margin %
20%
44%
2006 2014
Specialty Vitality Index Target ≥ 35%
PolyOne Corporation Page 11
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 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) $800 $450 $450 $1,700
PolyOne Corporation Page 13
60%
98%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 Q1 2015
Pension Funding**
As of March 31, 2015
Debt Maturities & Pension Funding – 3/31/15
Net Debt / EBITDA* = 2.1x
$49
$317
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Debt Maturities
As of March 31, 2015
($ millions)
Coupon Rate: 7.500% 7.375% 5.250%
** includes US-qualified pension plans only *TTM 3/31/2015
PolyOne Corporation Page 14
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 $0.24
$0.32
$0.40
$0.10
$0.20
$0.30
$0.40
$0.50
2011 2012 2013 2014 2015
Annual Dividend
Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material
solutions
Repurchased over
500k shares in Q1
2015
Repurchased 11.8
million shares since
early 2013
8.2 million shares are
available for
repurchase under the
current authorization
PolyOne Corporation Page 15
PolyOne Core Values
Innovation
Collaboration
Excellence
PolyOne Corporation Page 16
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt
extinguishment costs; employee separation costs resulting from personnel reduction programs, plant phase-in costs, executive separation agreements; asset impairments; mark-to-market
adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties, remediation costs and related
insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and
losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of
the performance period; unrealized gains and losses from foreign currency option contracts; one-time, non-recurring items; and the effect of changes in accounting principles or other such
laws or provisions affecting reported results.
(2) Tax adjustments include the net tax expense (benefit) from one-time income tax items and deferred income tax valuations allowance adjustments.
https://www.avient.com/sites/default/files/resources/PolyOne%25202015%2520Annual%2520Report.pdf
We immediately recognize actuarial
gains and losses in our operating results in
the year in which the gains or losses occur.
Gains and losses on these contracts generally
offset gains and losses on the assets and liabilities being hedged.
We immediately recognize actuarial gains and losses in
our operating results in the year in which the gains or losses occur.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Jefferies%2520Industrials%2520Conference%25202015.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
The final amount of charges resulting from the planned North American asset realignment and the Company’s ability to realize anticipated
savings and operational benefits from the asset realignment;
Our ability to achieve the strategic and other objectives relating to the acquisition of Spartech Corporation, including any expected synergies;
Our ability to successfully integrate Spartech and achieve the expected results of the acquisition, including, without limitation, the acquisition
being accretive;
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 in the markets where we conduct business;
Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online;
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, employee productivity goals, and an inability to raise or sustain prices for products or services;
An inability to raise or sustain prices for products or services;
An inability to maintain appropriate relations with unions and employees;
The inability to achieve expected results from our acquisition activities;
Our ability to continue to pay cash dividends;
The amount and timing of repurchases of our common shares, if any; and
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.
S&P 500
PolyOne Corporation Page 9
2006 YTD 2015 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 17.2% 20%+
Global Specialty Engineered
Materials 1.1% 15.3% 20%+
Designed Structures & Solutions 1.4% (2012) 3.3% 12 – 14%
Performance Products &
Solutions 5.5% 7.6% 10 – 12%
Distribution 2.6% 6.5% 6.5 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 67% 80%+
3) ROIC (after-tax)* 5.0% 11.7% 15%
4) Adjusted EPS Growth N/A
23 Consecutive
Quarters of YOY
EPS Growth
Double Digit
Expansion
Proof of Performance & 2020 Goals
*ROIC is defined as TTM adjusted operating income after-tax divided by the sum of average debt and equity over a 5 quarter period
PolyOne Corporation Page 10
Platinum Vision: Pathway to Accelerated Growth
Organic
Sales Growth
Margin
Expansion
Share
Repurchases
Acquisitions
PolyOne Corporation Page 11
Innovation Drives Earnings Growth
*Percentage of Specialty Platform revenue from products introduced in last five years
$20
$53
2006 2014
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
27%
2006 2014
Specialty Platform
Gross Margin %
20%
44%
2006 2014
Specialty Vitality Index Target ≥ 35%
PolyOne Corporation Page 12
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 13
Prototype Frame
Opportunity
Scale-up &
Test Market
Build
Business Case
Commercial
Launch
Phase
1
Phase
2
Phase
3
Phase
4
Phase
5
6
9
7
3
5
12
5 3 2
8
4
2
4
3
1
Breakthrough
Platform
Derivative
A Rich Pipeline of Opportunity
Number of Projects 14 8 18 12 22 74
Addressable Market
($ millions) $700 $600 $600 $1,900
PolyOne Corporation Page 14
60%
102%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 Q2 2015
Pension Funding**
As of June 30, 2015
Debt Maturities & Pension Funding
Net Debt / Adjusted EBITDA** = 2.0x
Coupon Rate: 7.500% Variable* 7.375% 5.250%
** includes US-qualified pension plans only *Weighted average rate on revolver was 2.40% as of 6/30/15 **TTM 6/30/2015
$49
$79
$317
$600
$400
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2018 2020 2023
Debt Maturities
As of June 30, 2015
($ millions)
PolyOne Corporation Page 15
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 $0.24
$0.32
$0.40
$0.10
$0.20
$0.30
$0.40
$0.50
2011 2012 2013 2014 2015
Annual Dividend
Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material
solutions
Repurchased nearly
600K shares in Q2
2015
Repurchased 12.4
million shares since
early 2013
7.6 million shares are
available for
repurchase under the
current authorization
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?
Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt
extinguishment costs; employee separation costs resulting from personnel reduction programs, plant phase-in costs, executive separation agreements; asset impairments; mark-to-market
adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties, remediation costs and related
insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and
losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of
the performance period; unrealized gains and losses from foreign currency option contracts; one-time, non-recurring items; and the effect of changes in accounting principles or other such
laws or provisions affecting reported results.
(2) Tax adjustments include the net tax expense (benefit) from one-time income tax items and deferred income tax valuations allowance adjustments.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520–%2520Goldman%2520Sachs%2520Conference%25202015.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
The final amount of charges resulting from the planned North American asset realignment and the Company’s ability to realize anticipated
savings and operational benefits from the asset realignment;
Our ability to achieve the strategic and other objectives relating to the acquisition of Spartech Corporation, including any expected synergies;
Our ability to successfully integrate Spartech and achieve the expected results of the acquisition, including, without limitation, the acquisition
being accretive;
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 in the markets where we conduct business;
Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online;
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, employee productivity goals, and an inability to raise or sustain prices for products or services;
An inability to raise or sustain prices for products or services;
An inability to maintain appropriate relations with unions and employees;
The inability to achieve expected results from our acquisition activities;
Our ability to continue to pay cash dividends;
The amount and timing of repurchases of our common shares, if any; and
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.
S&P 500
PolyOne Corporation Page 9
2006 Q1 2015 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 16.2% 20%+
Global Specialty Engineered
Materials 1.1% 16.3% 20%+
Designed Structures & Solutions 1.4% (2012) 2.7% 12 – 14%
Performance Products &
Solutions 5.5% 6.5% 10 – 12%
Distribution 2.6% 5.9% 6.5 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 69% 80%+
3) ROIC 5.0% 11.4% 15%
4) Adjusted EPS Growth N/A
22 Consecutive
Quarters of
EPS Growth
Double Digit
Expansion
Proof of Performance & 2020 Goals
PolyOne Corporation Page 10
Platinum Vision: Pathway to Accelerated Growth
Organic
Sales Growth
Margin
Expansion
Share
Repurchases
Acquisitions
PolyOne Corporation Page 11
Innovation Drives Earnings Growth
*Percentage of Specialty Platform revenue from products introduced in last five years
$20
$53
2006 2014
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
27%
2006 2014
Specialty Platform
Gross Margin %
20%
44%
2006 2014
Specialty Vitality Index Target ≥ 35%
PolyOne Corporation Page 12
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 13
Prototype Frame
Opportunity
Scale-up &
Test Market
Build
Business Case
Commercial
Launch
Phase
1
Phase
2
Phase
3
Phase
4
Phase
5
6
9
7
3
5
12
5 3 2
8
4
2
4
3
1
Breakthrough
Platform
Derivative
A Rich Pipeline of Opportunity
Number of Projects 14 8 18 12 22 74
Addressable Market
($ millions) $700 $600 $600 $1,900
PolyOne Corporation Page 14
60%
98%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 Q1 2015
Pension Funding**
As of March 31, 2015
Debt Maturities & Pension Funding
Net Debt / EBITDA* = 2.1x
$49
$317
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Debt Maturities
As of March 31, 2015
($ millions)
Coupon Rate: 7.500% 7.375% 5.250%
** includes US-qualified pension plans only *TTM 3/31/2015
PolyOne Corporation Page 15
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 $0.24
$0.32
$0.40
$0.10
$0.20
$0.30
$0.40
$0.50
2011 2012 2013 2014 2015
Annual Dividend
Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material
solutions
Repurchased over
500k shares in Q1
2015
Repurchased 11.8
million shares since
early 2013
8.2 million shares are
available for
repurchase under the
current authorization
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?
Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt
extinguishment costs; employee separation costs resulting from personnel reduction programs, plant phase-in costs, executive separation agreements; asset impairments; mark-to-market
adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties, remediation costs and related
insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and
losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of
the performance period; unrealized gains and losses from foreign currency option contracts; one-time, non-recurring items; and the effect of changes in accounting principles or other such
laws or provisions affecting reported results.
(2) Tax adjustments include the net tax expense (benefit) from one-time income tax items and deferred income tax valuations allowance adjustments.
https://www.avient.com/news/new-textile-printing-inks-collaboration-announced-between-polyone-wilflex-and-ryonet
This new collaboration with PolyOne will allow us to serve the textile printing market with industry-leading inks.”
The Wilflex™ brand of inks emerged in the early 1960’s as screen printing on t-shirts gained popularity for self-expression allowing the Wilflex™ brand to gain global recognition.
Naomi Peck
PolyOne Corporation
Marketing Communications Manager
+44 151 632 8800
naomi.peck@avient.com