https://www.avient.com/sites/default/files/2024-12/Terms and Conditions of Sale for Peru.pdf
Buyer acknowledges that information in Seller’s
marketing materials, technical data sheets and other descriptive
publications distributed or published on its websites may vary from
time to time without notice.
Buyer acknowledges that Seller has furnished to Buyer
Safety Data Sheets, which include warnings together with safety and
health information concerning the Product and/or the containers for
such Product.
Buyer acknowledges and represents that it
is familiar with and shall strictly comply with all applicable laws and
regulations concerning the trade, export or re-export of products,
services, data or technology (“Items”), including the International
Traffic in Arms Regulations (ITAR), the Export Administration
Regulations (EAR) and the trade sanctions regulations administered
by the U.S.
https://www.avient.com/sites/default/files/2022-10/PREPERM Automotive Application Bulletin.pdf
This literature shall NOT operate as permission, recommendation, or inducement to practice any patented invention without permission of the patent owner.
1.844.4AVIENT
www.avient.com
Typical dielectric properties of PREPERM radome grades
as a function of frequency
Technical measurement data value depends on a final application and conditions of use for our products.
https://www.avient.com/sites/default/files/2020-11/eccoh-processing-guide.pdf
ADDITIONAL INFORMATION
See respective data sheets for specific temperature recommendations.
https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202012%2520-%2520Performance%2520Products%2520and%2520Solutions.pdf
HealthCare
Transportation
8%
Textiles
Target
Page 85
• Trend toward more
affordable housing
favors our product
1.5
2.0
2.5
Housing Starts
(in million units)
50 year average
Market Dynamics
• Ultimate housing
recovery presents
substantial upside to
already record-
setting results
Source: Historical Data from the US Census Bureau,
2012 estimate is a PolyOne projection.
0.0
0.5
1.0
'87 '89 '91 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12
Page 86
Value Proposition
• Premier provider of specialized vinyl and supply chain solutions, leading
the industry in innovation and service
Transformation Highlights
• Management upgrades ensure that each PP&S business
Value Proposition and Transformation Highlights
• Management upgrades ensure that each PP&S business
maximizes performance
• Asset realignment and Lean Six Sigma reduce costs
• Strengthened relationship with winning customers
• Increased differentiation in all business units
> $12B Addressable Market
Page 87
Key Differentiators
• Providing application design, material design
and / or process design assistance not available
from competitors
• Capability to improve joint value streams
• We are the best innovator in our space • We are the best innovator in our space
• Expanding customers’ opportunities
by providing innovative materials
and marketing ideas
• We provide world-class customer
service and delivery performance
Page 88
13.7% 14.3%
15.5%
9.9%
6.2%
5.4%
WC % of Sales
• Best-in-class working
capital management and
delivery performance
• Improved raw material
Areas of Focus – Operational Excellence
89.1%
92.0%
94.2%
93.4% 93.4% 94.0%
On-Time Delivery
• Improved raw material
positions, sourcing savings
• PolyOne pilot site for many
LSS and manufacturing
excellence programs
*As measured to customer request date
*
Page 89
• reFlexTM Bioplasticizers
Applications: Wide variety of flexible vinyl-based products
• GeonTM HC for Healthcare
� Applications: Medical device housings, specialty tubing
� Customer benefits: Withstand aggressive antiseptics
Key Innovations
� Applications: Wide variety of flexible vinyl-based products
� Customer benefits: Lower carbon footprint,
improved productivity
• GeonTM SF Super Flow
� Applications: Large appliance parts, molded siding panels
� Customer benefits: Flame retardancy, detergent resistance
Page 90
Critical Imperatives and 2015 Goal
Critical Imperatives
• Accelerate innovation - grow in new applications not
historically served with vinyl
• Drive continuous improvement in manufacturing and
working capital efficienciesworking capital efficiencies
• Selectively leverage construction recovery
2015 Goal
• 9 - 12% return on sales
Page 91
Page 92
https://www.avient.com/sites/default/files/2020-09/oncolor-sc-product-bulletin-8.5x11.pdf
You can be certain that Avient meets or exceeds the material safety
data reporting requirements of your country or region
https://www.avient.com/sites/default/files/2021-03/avient-antitrust-2021-update-port-a4.pdf
Linha direta de ética
https://www.Avient.com/company/policies-and-
governance/ethics-hotline
Telefone na linha direta de ética
1-877-228-5410
7
mailto:ethics.officer%40avient.com?
subject=
http:// avient.ethicspoint.com
http://www.Avient.com/company/policies-and-governance/ethics-hotline
http://www.Avient.com/company/policies-and-governance/ethics-hotline
1.
✓ Documente a fonte e a data de recebimento de todas as listas de preços de concorrentes e de outros dados sobre
a concorrência contidos em seus arquivos
https://www.avient.com/sites/default/files/2022-08/AVNT Aug 2022 Presentation - Jefferies.pdf
AVIENT: WHO WE ARE
38
21
9
34
• U.S. and Canada
• Latin America
• Europe, Middle East & Africa
• Asia
25,000+
CUSTOMERS
Headquartered in Avon Lake, OH
(Cleveland)
8,800+ employees
100+ manufacturing plants
Key Financial Data
2022E Sales $5.1 billion
2022E EBITDA $635 million
2022E EPS $3.50
>70%
ARE CUSTOMIZED SOLUTIONS
TO UNIQUE SPECIFICATIONS
of
sales
WHO WE ARE – VISION, STRATEGY, CULTURE
4
Avient Corporation (NYSE: AVNT) provides
specialized and sustainable material solutions that
transform customer challenges into opportunities,
bringing new products to life for a better world.
Global Compact &
fulfilled Communication of Progress (COP)
requirements
• New Sustainability Strategy overview page including
our 2022 AIP ESG metrics
• New ESG Performance page with ESG ratings,
awards, and certifications
• Increased disclosures on carbon emissions, including
disclosure of Climate Change Scenario Analysis
• Added new Product Stewardship and Chemical
Management policies
• Enhanced data reporting for Workforce
Demographics
• Improved social disclosures on human rights,
dependent care and special leave and strategic
training management
2021 SUSTAINABILITY REPORT
Launching integrated sustainability website in parallel with report
Aligned with leading reporting frameworks
13
ESG PERFORMANCE & AWARDS
14
16th
ENVIRONMENTAL
SOCIAL
GOVERNANCE
1
(as of 6/30/22)
2022 O U T LO O K
$429
$490
$3.05
$3.50
FY 2022 GUIDANCE
(TOTAL COMPANY: CURRENT PORTFOLIO)
16
Sales Adjusted Operating Income
$4,819
$5,100
+ 6%
Adjusted EPS
+ 14% + 15%
(in millions) (in millions)
(+ 9% excluding FX) (+ 18% excluding FX) (+ 20% excluding FX)
17
CASH FLOW / LEVERAGE
($ millions) 2022E
Cash Flow from Operating Activities 400$
Less:
Run-Rate CapEx (90)
CapEx for Clariant Integration (10)
CapEx for IT System Upgrade (15)
Total CapEx (115)
Free Cash Flow 285$
Adjusted EBITDA 635$
Net Debt / Adjusted EBITDA 1.6x
18
DYNEEMA / DISTRIBUTION UPDATES
• Strong performance so far in 2022 in-line
with our modeling
• Acquisition to be finalized as early as
September 1, pending standard
regulatory process and closing conditions
• Encouraging interest thus far from
potential buyers for world-class business
with a strong track record
• Second round bids due in August
DISTRIBUTION
19
PRO FORMA MODELING UPDATE
2022E
($M)
Revenue 5,100$ 415$ 5,515$ (1,635)$ 3,880$
Adjusted EBITDA 635 130 765 (109) 656
EBITDA % 12% 31% 14% 7% 17%
Adj.
Annual Purchases
RAW MATERIAL AND SUPPLY CHAIN UPDATE
Based on 2021 purchases, excludes Distribution business
DYN E E MA ACQ U I S I T I O N
32
15x stronger than steel
Reduces weight by 30% vs. other solutions
Well-maintained global asset base poised to serve growing demand
• Purchase price of $1.48B represents 11.4x multiple of
2022 EBITDA
• Acquisition will expand Avient’s composites and fiber
portfolio with Dyneema®, the World’s Strongest Fiber™
• $415M sales and 30%+ EBITDA margins; Immediately
accretive to pro forma 2022 EPS, adding $0.35
• 1,300 patents globally, ~50% of sales patent protected
• 1,000+ employees across global production network and
dedicated technology centers
• Composites platform will increase from $261M to $680M in
revenue and from $49M to $180M in EBITDA Indicates Dyneema® location
$175M
(42%)
$65M
(16%)
$175M
(42%)
2022E Sales By Region ($M)
(1) $0.35 EPS excludes intangible amortization
(2) Based on 2022 expected results
(1) (2)
(2)
FIT WITH FOUR PILLAR STRATEGY
33
Specialization
• Innovation-led organization with
tremendous intellectual property value in
trademarks, patents and “know-how”
• Deep history of application development
and premium, leading brand with the
World’s Strongest FiberTM
Globalization
• Global customer base with an
established presence across all major
geographic regions
• Global technology centers complement
existing Composites applications and
expertise
Operational
Excellence
• Best-in-class safety performance
• Well-run and maintained asset base fit to
serve future growth
• Highly effective and reliable supply chain
with emphasis on optimizing service to
customers
Commercial
Excellence
• Deep customer relationships extend
across the value chain and drive ability
to grow
• Offer a full suite of services with an active
role in design, development and
commercialization
People
Experienced and
talented associates
with a passion for
safety, specialization
and winning
DYNEEMA® OVERVIEW
K E Y I N D U S T R I E S
PERSONAL PROTECTION
Military • Law Enforcement • First
Responders Body Armor • Helmets •
Vehicle Protection
$215M
MARINE & SUSTAINABLE
INFRASTRUCTURE
Towing / Mooring • Aquaculture •
Floating Wind • Offshore Cranes
$130M
CONSUMER
Consumer • Outdoor High Performance •
Safety Equipment
$70M
34 Figures reflect 2022 expected sales
MIFOverview Competition Valuechain &
Go-to-market Strategy Innovation Financials
TECHNOLOGY
35
1,200 1,300
2,500
Avient Dyneema Combined
Patents
• True specialty business – the World’s Strongest Fiber™
• Deep history of application development with customers,
strongest in the industry
• The only UHMwPE (ultra-high molecular weight polyethylene)
fiber producer that is backward integrated
o Provides innovation advantage through control of all steps of the process
• Complementary with our existing reinforced film expertise
(PolyStrand) and engineered fiber presences (Fiber-Line)
WINNING PROPERTIES
Ultra high strength vs. weight Highly flexible
Floats on water Chemically inert; no smell/taste and non-toxic
High resistance to UV radiation Self-lubricating, with low friction
One-of-a-kind technology
®
FORMULATION PROCESS
36
• Like Avient, Dyneema® offers similar
core competencies around formulation
and material science
• Technology that combines polymers and
fibers to provide specialized, high
performing solutions for customers
• Design capabilities ensure that
applications are highly customized for
the specified end use
DYNEEMA® IN THE VALUE CHAIN
37
UHMwPE
Fiber / Tapes
Military Personnel,
Law Enforcement
Heavy Marine,
Offshore Wind Energy
and Mooring,
Aquaculture
Outdoor,
Footwear, Apparel,
Inflatables
• Material Science
• Formulation
• Service
INTERMEDIATE MANUFACTURING
(CUSTOMERS) OEM / APPLICATION
DEMAND TRENDS
38
• Military spending and near-term demand for higher performing personal protection
products (like Dyneema®) expected to increase
o European NATO members annual defense spend expected to increase by up to 20%(1)
o Japan aiming to almost double defense spending over the next 5 years(2)
o Accelerated launch of next generation technology in North America
• Policy-driven demand for sustainable energy; growth in floating offshore wind
farms which require advanced, durable technology
o Offshore wind expected to grow at a CAGR of 32% with the level of annual installations
quadrupling over the next five years(3)
• Continued investment in aquaculture as a sustainable food source(4)
• Strong demand in outdoor high performance space across niche consumer
applications aligns with 10% growth assumption for Avient’s Composites portfolio
Sources:
(1) “Funding NATO”, NATO.int (April 1, 2022)
(2) “Japan Ruling Party Calls for Defense Spending Boost to 2% of GDP”, WSJ (April 21, 2022)
(3) “Global Wind Report 2021”, Global Wind Energy Council
(4) “Aquaculture Supports a Sustainable Earth”, NOAA Fisheries
39
A L I G N M E N T W I T H
S U S T A I N A B I L I T Y G O A L S
PRODUCTS
AVIENT’S EXISTING COMPOSITES PORTFOLIO
D I V E R S E C A P A B I L I T I E S A N D S O L U T I O N S S E R V I N G
M A N U F A C T U R E R S A N D O E M S
LFT Tapes Laminates/Panels Shapes Pultrusion Engineered Fibers
40
AVIENT’S COMPOSITES PORTFOLIO
SALES AND EBITDA
41
$74 $84
$216 $212
$261
$5 $10
$32
$41
$49
$180
0
50
100
150
200
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
$550
$600
$650
$700
$750
2017 2018 2019 2020 2021 2022E
$680
• Dyneema® acquisition will further
improve Composites EBITDA margins
to 26%
• Dyneema® will complement our
existing portfolio with deep formulation
expertise, innovative culture and
global commercial presence
• Composites will continue to be a key
growth driver to deliver future revenue
growth in excess of GDP
(1) Pro forma for the acquisition of Dyneema®
SEGMENT DATA
U.S. & Canada
50%
Latin America
2021 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
19%
Building and
END MARKET REVENUE
(1) Total company sales and adjusted EBITDA of $4,819M and $581M, respectively, include intercompany sales eliminations and corporate costs
$2,402M
$409M
$919M
$164M
$1,631M
$94M
Sales EBITDA
Distribution
Specialty Engineered Materials
Color Additives and Inks
$581M$4,819M
43
34%
Building &
1% Telecommunications
C O L O R , A D D I T I V E S & I N K S
2021 REVENUE | $2 .4 BILLION
32%
40%
Latin America
END MARKET REGION
44
S P E C I A LT Y E N G I N E E R E D M AT E R I A L S
27%
Building &
2021 REVENUE | $919 MILLION
END MARKET
55%
REGION
45
D I S T R I BU T I O N
26%
Building and
80%
3%
Latin
America
END MARKET REGION
K EY SU PPL IER S
2021 REVENUE | $1 .6 BILLION
46
TOTA L C O M PA N Y R E G I O N A L S A L E S
BY END MARKET
30%
26%Healthcare
14%
Building &
2% Energy
(16% of sales)
32%
Building &
(25% of sales)
47
19%
Building &
US &
Canada
(50% of sales)
38%
33%
Building &
LATAM
(9% of sales)
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Dollars in millions, except for per share data)
Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders
and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special
items, to assess performance and facilitate comparability of results.
https://www.avient.com/sites/default/files/2021-04/avnt-fourth-quarter-2020-news-release.pdf
We held our priorities firm by keeping health and safety first,
providing world-class service to our customers, and utilizing our unique position to aid in
recovery efforts as an essential supplier throughout the world.”
2021 Outlook
Commenting on the Company’s 2021 outlook, Mr.
The webcast can be viewed at avient.com/investors, or by clicking here: https://edge.media-
server.com/mmc/p/ko4y5g9z.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520%25E2%2580%2593%2520Recast%2520Financial%2520Information%2520for%2520Discontinued%2520Operations.pdf
Slide 4 - Adjusted Financial Information Recast for DSS Divestiture
Reflects quarterly adjusted condensed financial data recast for DSS as a discontinued operation.
Slide 5 - Business Segment and Data Recast for DSS Divestiture
Reflects segment disclosures recast for DSS as a discontinued operation.
Table of Contents
POLYONE CORPORATION 3
GAAP Financial Information Recast for DSS Divestiture
Sales 759.6$ 838.7$ 821.1$ 754.4$ 3,173.8$ 828.7$ 841.5$ 806.1$ 741.7$ 3,218.0$ 754.0$ 775.5$ 729.2$ 665.4$ 2,924.1$
Cost of sales 598.6 657.1 661.4 657.0 2,574.1 660.2 674.2 644.1 602.7 2,581.2 589.9 599.6 564.2 518.9 2,272.6
Gross margin 161.0 181.6 159.7 97.4 599.7 168.5 167.3 162.0 139.0 636.8 164.1 175.9 165.0 146.5 651.5
Selling and administrative 104.8 108.5 104.2 66.1 383.6 112.5 118.0 104.1 151.6 486.2 93.8 97.2 90.7 112.2 393.9
Income from equity affiliates and minority interest 0.1 - - 26.8 26.9 - - - - - - - - - -
Operating income (loss) 56.3 73.1 55.5 58.1 243.0 56.0 49.3 57.9 (12.6) 150.6 70.3 78.7 74.3 34.3 257.6
Interest expense, net (15.6) (16.6) (15.9) (15.2) (63.3) (15.5) (15.7) (15.4) (15.5) (62.1) (16.1) (16.2) (16.2) (15.5) (64.0)
Premium on early extinguishment of debt (10.6) - (5.2) - (15.8) - - - - - - - - (16.4) (16.4)
Other income (expense), net 1.5 (1.3) (1.5) - (1.3) (0.7) (0.4) (1.6) (1.4) (4.1) (0.6) (1.2) (1.7) 0.3 (3.2)
Income (loss) before income taxes 31.6 55.2 32.9 42.9 162.6 39.8 33.2 40.9 (29.5) 84.4 53.6 61.3 56.4 2.7 174.0
Income tax (expense) benefit (10.8) (21.6) (13.4) (16.6) (62.4) (10.7) (2.6) (12.0) 15.6 (9.7) (23.3) 4.3 (8.8) 2.3 (25.5)
Net income (loss) from continuing operations 20.8 33.6 19.5 26.3 100.2 29.1 30.6 28.9 (13.9) 74.7 30.3 65.6 47.6 5.0 148.5
Net (loss) income from discontinued operations, net of income taxes (5.7) 147.0 3.3 (2.1) 142.5 0.1 0.9 3.8 (1.1) 3.7 (0.1) 1.4 (3.1) (2.0) (3.8)
Net income (loss) 15.1 180.6 22.8 24.2 242.7 29.2 31.5 32.7 (15.0) 78.4 30.2 67.0 44.5 3.0 144.7
Less: Non-controlling interest 0.2 0.3 0.2 0.4 1.1 0.2 0.2 - 0.4 0.8 - (0.2) - 0.1 (0.1)
Net income (loss) attributable to PolyOne common shareholders 15.3$ 180.9$ 23.0$ 24.6$ 243.8$ 29.4$ 31.7$ 32.7$ (14.6)$ 79.2$ 30.2$ 66.8$ 44.5$ 3.1$ 144.6$
Earnings per share attributable to PolyOne common shareholders - Basic
Continuing operations 0.23$ 0.35$ 0.21$ 0.28$ 1.06$ 0.31$ 0.33$ 0.32$ (0.15)$ 0.82$ 0.34$ 0.73$ 0.55$ 0.06$ 1.69$
Discontinued operations (0.06)$ 1.50$ 0.03$ (0.02)$ 1.49$ -$ 0.01$ 0.04$ (0.01)$ 0.04$ -$ 0.02$ (0.04)$ (0.02)$ (0.04)$
Total 0.17$ 1.85$ 0.24$ 0.26$ 2.55$ 0.31$ 0.34$ 0.36$ (0.16)$ 0.86$ 0.34$ 0.75$ 0.51$ 0.04$ 1.65$
Earnings per share attributable to PolyOne common shareholders - Diluted
Continuing operations 0.22$ 0.34$ 0.20$ 0.27$ 1.05$ 0.31$ 0.33$ 0.31$ (0.15)$ 0.81$ 0.34$ 0.73$ 0.54$ 0.06$ 1.67$
Discontinued operations (0.06)$ 1.49$ 0.04$ (0.02)$ 1.48$ -$ 0.01$ 0.04$ (0.01)$ 0.04$ -$ 0.01$ (0.04)$ (0.02)$ (0.04)$
Total 0.16$ 1.83$ 0.24$ 0.25$ 2.53$ 0.31$ 0.34$ 0.35$ (0.16)$ 0.85$ 0.34$ 0.74$ 0.50$ 0.04$ 1.63$
Sales 738.5$ 758.2$ 746.6$ 694.8$ 2,938.1$ 796.7$
Cost of sales 561.9 576.3 580.5 542.3 2,261.0 614.4
Gross margin 176.6 181.9 166.1 152.5 677.1 182.3
Selling and administrative 106.2 100.1 94.1 90.4 390.8 98.3
Operating income 70.4 81.8 72.0 62.1 286.3 84.0
Interest expense, net (14.6) (14.6) (15.1) (15.4) (59.7) (14.6)
Premium on early extinguishment of debt - (0.4) - - (0.4) (0.3)
Other income (expense), net - 0.1 (0.1) 0.4 0.4 (1.1)
Income before income taxes 55.8 66.9 56.8 47.1 226.6 68.0
Income tax expense (17.6) (16.8) (14.0) (12.0) (60.4) (19.7)
Net income from continuing operations 38.2 50.1 42.8 35.1 166.2 48.3
Net income (loss) from discontinued operations, net of income taxes 0.8 (0.1) (0.5) (1.4) (1.2) (1.4)
Net income 39.0 50.0 42.3 33.7 165.0 46.9
Less: Non-controlling interest 0.1 - - 0.1 0.2 -
Net income attributable to PolyOne common shareholders 39.1$ 50.0$ 42.3$ 33.8$ 165.2$ 46.9$
Earnings per share attributable to PolyOne common shareholders - Basic
Continuing operations 0.45$ 0.59$ 0.51$ 0.43$ 1.98$ 0.58$
Discontinued operations 0.01$ -$ (0.01)$ (0.02)$ (0.01)$ (0.01)$
Total 0.46$ 0.59$ 0.50$ 0.41$ 1.97$ 0.57$
Earnings per share attributable to PolyOne common shareholders - Diluted
Continuing operations 0.45$ 0.59$ 0.51$ 0.42$ 1.96$ 0.58$
Discontinued operations 0.01$ -$ (0.01)$ (0.02)$ (0.01)$ (0.01)$
Total 0.46$ 0.59$ 0.50$ 0.40$ 1.95$ 0.57$
POLYONE CORPORATION 4
Adjusted Financial Information Recast for DSS Divestiture
Sales 759.6$ 838.7$ 821.1$ 754.4$ 3,173.8$ 828.7$ 841.5$ 806.1$ 741.7$ 3,218.0$ 754.0$ 775.5$ 729.2$ 665.4$ 2,924.1$
Cost of sales 601.6 670.6 656.6 606.9 2,535.7 656.0 660.1 637.0 592.6 2,545.7 588.7 597.4 561.0 511.0 2,258.1
Gross margin 158.0 168.1 164.5 147.5 638.1 172.7 181.4 169.1 149.1 672.3 165.3 178.1 168.2 154.4 666.0
Selling and administrative 102.4 106.2 107.6 107.5 423.7 109.6 108.4 100.0 94.5 412.5 91.6 93.1 88.1 96.5 369.3
Operating income 55.6 61.9 56.9 40.0 214.4 63.1 73.0 69.1 54.6 259.8 73.7 85.0 80.1 57.9 296.7
Interest expense, net (13.7) (16.6) (15.9) (15.2) (61.4) (15.5) (15.7) (15.4) (15.5) (62.1) (16.1) (16.2) (16.2) (15.5) (64.0)
Other income (expense), net 0.1 (1.3) (1.5) - (2.7) (0.7) (0.9) (1.7) (1.5) (4.8) (0.6) (1.2) (1.8) 0.3 (3.3)
Income before income taxes 42.0 44.0 39.5 24.8 150.3 46.9 56.4 52.0 37.6 192.9 57.0 67.6 62.1 42.7 229.4
Income tax expense (14.2) (16.1) (13.5) (9.8) (53.6) (14.9) (18.3) (16.6) (12.0) (61.8) (18.8) (21.3) (19.4) (12.1) (71.6)
Adjusted net income from continuing operations 27.8 27.9 26.0 15.0 96.7 32.0 38.1 35.4 25.6 131.1 38.2 46.3 42.7 30.6 157.8
Less: Non-controlling interest 0.2 0.3 0.2 0.4 1.1 0.2 0.2 - 0.4 0.8 - (0.2) - 0.1 (0.1)
Adjusted net income attributable to PolyOne common shareholders - continuing operations 28.0$ 28.2$ 26.2$ 15.4$ 97.8$ 32.2$ 38.3$ 35.4$ 26.0$ 131.9$ 38.2$ 46.1$ 42.7$ 30.7$ 157.7$
Adjusted earnings per share attributable to PolyOne common shareholders - Diluted 0.30$ 0.28$ 0.27$ 0.15$ 1.01$ 0.34$ 0.41$ 0.38$ 0.28$ 1.41$ 0.43$ 0.51$ 0.48$ 0.36$ 1.78$
Sales 738.5$ 758.2$ 746.6$ 694.8$ 2,938.1$ 796.7$
Cost of sales 557.8 576.5 576.1 540.7 2,251.1 612.0
Gross margin 180.7 181.7 170.5 154.1 687.0 184.7
Selling and administrative 100.0 93.9 88.3 94.9 377.1 99.0
Operating income 80.7 87.8 82.2 59.2 309.9 85.7
Interest expense, net (14.6) (14.6) (15.1) (15.4) (59.7) (14.6)
Other (expense) income, net (0.2) 0.2 (0.1) 0.3 0.2 (1.2)
Income before income taxes 65.9 73.4 67.0 44.1 250.4 69.9
Income tax expense (21.0) (23.1) (20.7) (11.5) (76.3) (20.7)
Adjusted net income from continuing operations 44.9 50.3 46.3 32.6 174.1 49.2
Less: Non-controlling interest 0.1 - - 0.1 0.2 -
Adjusted net income attributable to PolyOne common shareholders - continuing operations 45.0$ 50.3$ 46.3$ 32.7$ 174.3$ 49.2$
Adjusted earnings per share attributable to PolyOne common shareholders - Diluted 0.53$ 0.59$ 0.55$ 0.39$ 2.06$ 0.59$
POLYONE CORPORATION 5
Business Segment and Data Recast for DSS Divestiture
Sales:
Color, Additives and Inks 205.3 229.4 219.0 198.6 852.3 219.6 228.7 212.0 190.5 850.8 208.5 217.4 199.9 184.9 810.7
Specialty Engineered Materials 152.9 158.8 157.6 146.2 615.5 157.4 157.8 145.8 137.3 598.3 141.9 139.7 136.0 125.2 542.8
Performance Products and Solutions 166.6 210.3 207.4 188.9 773.2 207.6 211.2 213.0 184.8 816.6 175.9 190.3 175.2 152.7 694.1
PolyOne Distribution 268.0 275.1 275.0 257.1 1,075.2 284.1 287.0 280.5 262.8 1,114.4 265.7 266.8 259.5 242.1 1,034.1
Corporate and Eliminations (33.2) (34.9) (37.9) (36.4) (142.4) (40.0) (43.2) (45.2) (33.7) (162.1) (38.0) (38.7) (41.4) (39.5) (157.6)
Sales 759.6 838.7 821.1 754.4 3,173.8 828.7 841.5 806.1 741.7 3,218.0 754.0 775.5 729.2 665.4 2,924.1
Gross Margin:
Color, Additives and Inks 67.7 75.2 71.8 63.1 277.8 74.9 81.7 71.8 65.1 293.5 73.4 80.0 73.4 67.0 293.8
Specialty Engineered Materials 39.2 39.0 39.2 35.8 153.2 42.6 43.5 39.7 37.4 163.2 43.0 41.1 39.6 37.3 161.0
Performance Products and Solutions 24.0 26.9 27.6 23.5 102.0 28.0 29.0 29.2 22.8 109.0 22.5 27.4 27.2 24.8 101.9
PolyOne Distribution 28.2 28.1 27.6 24.7 108.6 29.8 28.8 29.3 26.1 114.0 27.8 30.2 29.4 27.2 114.6
Corporate and Eliminations 1.9 12.4 (6.5) (49.7) (41.9) (6.8) (15.7) (8.0) (12.4) (42.9) (2.6) (2.8) (4.6) (9.8) (19.8)
Gross Margin 161.0 181.6 159.7 97.4 599.7 168.5 167.3 162.0 139.0 636.8 164.1 175.9 165.0 146.5 651.5
Selling and Administrative Expense:
Color, Additives and Inks 43.5 44.3 42.9 43.1 173.8 44.5 44.0 41.7 38.4 168.6 39.6 40.4 38.9 39.5 158.4
Specialty Engineered Materials 23.4 24.0 24.6 24.0 96.0 24.3 24.6 21.3 20.6 90.8 19.9 21.0 19.6 20.9 81.4
Performance Products and Solutions 10.4 11.6 12.5 11.5 46.0 12.0 11.4 11.4 11.1 45.9 11.0 11.1 11.1 11.3 44.5
PolyOne Distribution 12.0 11.2 11.0 11.1 45.3 12.6 11.5 10.6 11.1 45.8 12.1 11.1 11.8 11.6 46.6
Corporate and Eliminations 15.5 17.4 13.2 (23.6) 22.5 19.1 26.5 19.1 70.4 135.1 11.2 13.6 9.3 28.9 63.0
Selling and Administrative Expense 104.8 108.5 104.2 66.1 383.6 112.5 118.0 104.1 151.6 486.2 93.8 97.2 90.7 112.2 393.9
Operating Income:
Color, Additives and Inks 24.2 30.9 28.9 20.0 104.0 30.4 37.7 30.1 26.7 124.9 33.8 39.6 34.5 27.5 135.4
Specialty Engineered Materials 15.8 15.0 14.6 11.8 57.2 18.3 18.9 18.4 16.8 72.4 23.1 20.1 20.0 16.4 79.6
Performance Products and Solutions 13.6 15.3 15.1 12.0 56.0 16.0 17.6 17.8 11.7 63.1 11.5 16.3 16.1 13.5 57.4
PolyOne Distribution 16.2 16.9 16.6 13.6 63.3 17.2 17.3 18.7 15.0 68.2 15.7 19.1 17.6 15.6 68.0
Corporate and Eliminations (13.5) (5.0) (19.7) 0.7 (37.5) (25.9) (42.2) (27.1) (82.8) (178.0) (13.8) (16.4) (13.9) (38.7) (82.8)
Operating Income (loss) 56.3 73.1 55.5 58.1 243.0 56.0 49.3 57.9 (12.6) 150.6 70.3 78.7 74.3 34.3 257.6
Sales:
Color, Additives and Inks 204.9 212.2 195.9 184.7 797.7 211.8
Specialty Engineered Materials 141.0 143.3 146.2 135.3 565.8 159.1
Performance Products and Solutions 166.2 172.8 171.3 158.2 668.5 183.7
PolyOne Distribution 268.8 272.6 274.8 254.8 1,071.0 286.1
Corporate and Eliminations (42.4) (42.7) (41.6) (38.2) (164.9) (44.0)
Sales 738.5 758.2 746.6 694.8 2,938.1 796.7
Gross Margin:
Color, Additives and Inks 75.3 78.0 70.0 62.8 286.1 75.2
Specialty Engineered Materials 44.2 43.0 41.7 38.6 167.5 46.1
Performance Products and Solutions 32.4 33.0 29.2 26.6 121.2 33.9
PolyOne Distribution 30.7 29.5 29.6 27.3 117.1 31.4
Corporate and Eliminations (6.0) (1.6) (4.4) (2.8) (14.8) (4.3)
Gross Margin 176.6 181.9 166.1 152.5 677.1 182.3
Selling and Administrative Expense:
Color, Additives and Inks 40.4 39.8 38.6 39.8 158.6 40.1
Specialty Engineered Materials 20.8 21.6 21.2 22.8 86.4 22.5
Performance Products and Solutions 12.7 11.7 11.2 11.2 46.8 11.8
PolyOne Distribution 13.2 11.7 11.4 12.6 48.9 12.8
Corporate and Eliminations 19.1 15.3 11.7 4.0 50.1 11.1
Selling and Administrative Expense 106.2 100.1 94.1 90.4 390.8 98.3
Operating Income:
Color, Additives and Inks 34.9 38.2 31.4 23.0 127.5 35.1
Specialty Engineered Materials 23.4 21.4 20.5 15.8 81.1 23.6
Performance Products and Solutions 19.7 21.3 18.0 15.4 74.4 22.1
PolyOne Distribution 17.5 17.8 18.2 14.7 68.2 18.6
Corporate and Eliminations (25.1) (16.9) (16.1) (6.8) (64.9) (15.4)
Operating Income 70.4 81.8 72.0 62.1 286.3 84.0
POLYONE CORPORATION 6
Non-GAAP Reconciliations
Sales 759.6 838.7 821.1 754.4 3,173.8 828.7 841.5 806.1 741.7 3,218.0 754.0 775.5 729.2 665.4 2,924.1
Gross margin - GAAP 161.0 181.6 159.7 97.4 599.7 168.5 167.3 162.0 139.0 636.8 164.1 175.9 165.0 146.5 651.5
Special items in gross margin (see slide 7) (3.0) (13.5) 4.8 50.1 38.4 4.2 14.1 7.1 10.1 35.5 1.2 2.2 3.2 7.9 14.5
Adjusted gross margin 158.0 168.1 164.5 147.5 638.1 172.7 181.4 169.1 149.1 672.3 165.3 178.1 168.2 154.4 666.0
Adjusted gross margin as a percent of sales 20.8% 20.0% 20.0% 19.6% 20.1% 20.8% 21.6% 21.0% 20.1% 20.9% 21.9% 23.0% 23.1% 23.2% 22.8%
Operating income - GAAP 56.3 73.1 55.5 58.1 243.0 56.0 49.3 57.9 (12.6) 150.6 70.3 78.7 74.3 34.3 257.6
Special items in operating income (see slide 7) (0.7) (11.2) 1.4 (18.1) (28.6) 7.1 23.7 11.2 67.2 109.2 3.4 6.3 5.8 23.6 39.1
Adjusted operating income 55.6 61.9 56.9 40.0 214.4 63.1 73.0 69.1 54.6 259.8 73.7 85.0 80.1 57.9 296.7
Adjusted operating income as a percent of sales 7.3% 7.4% 6.9% 5.3% 6.8% 7.6% 8.7% 8.6% 7.4% 8.1% 9.8% 11.0% 11.0% 8.7% 10.1%
Sales 738.5 758.2 746.6 694.8 2,938.1 796.7
Gross margin - GAAP 176.6 181.9 166.1 152.5 677.1 182.3
Special items in gross margin (see slide 7) 4.1 (0.2) 4.4 1.6 9.9 2.4
Adjusted gross margin 180.7 181.7 170.5 154.1 687.0 184.7
Adjusted gross margin as a percent of sales 24.5% 24.0% 22.8% 22.2% 23.4% 23.2%
Operating income - GAAP 70.4 81.8 72.0 62.1 286.3 84.0
Special items in operating income (see slide 7) 10.3 6.0 10.2 (2.9) 23.6 1.7
Adjusted operating income 80.7 87.8 82.2 59.2 309.9 85.7
Adjusted operating income as a percent of sales 10.9% 11.6% 11.0% 8.5% 10.5% 10.8%
POLYONE CORPORATION 7
Summary of Special Items
Cost of sales:
Restructuring Costs - - - (2.5) (2.5) (3.3) (13.2) (2.8) (7.4) (26.7) (0.2) (0.2) (1.0) (6.3) (7.7)
Environmental remediation costs (2.0) (1.3) (4.8) (52.6) (60.7) (0.9) (0.9) (5.9) (2.6) (10.3) (1.5) (2.0) (4.3) (1.5) (9.3)
Pension & other post-retirement benefits - mark-to-market adjustment - - - 1.6 1.6 - - - (2.0) (2.0) - - - (1.0) (1.0)
Reimbursement of previously incurred environmental costs 5.2 14.9 - 3.4 23.5 - - 1.6 2.1 3.7 0.5 - 2.1 0.9 3.5
Acquisition related adjustments (0.2) (0.1) - - (0.3) - - - (0.2) (0.2) - - - - -
Impact on cost of sales 3.0 13.5 (4.8) (50.1) (38.4) (4.2) (14.1) (7.1) (10.1) (35.5) (1.2) (2.2) (3.2) (7.9) (14.5)
Selling and administrative expense:
Restructuring, legal and other (2.3) (1.9) 4.1 (1.0) (1.1) (2.7) (9.3) (3.9) 1.0 (14.9) (1.9) (3.4) (1.8) (3.9) (11.0)
Unrealized gain on foreign currency option contracts 0.4 0.2 0.3 0.2 1.1 - - - - - - - - - -
Pension & other post-retirement benefits - mark-to-market adjustment - - 42.4 42.4 - - - (54.5) (54.5) - - - (10.6) (10.6)
Acquisition/divestiture related costs (0.5) (0.6) (1.0) (0.2) (2.3) (0.2) (0.3) (0.2) (3.6) (4.3) (0.3) (0.7) (0.8) (1.2) (3.0)
Impact on selling and administrative expense (2.4) (2.3) 3.4 41.4 40.1 (2.9) (9.6) (4.1) (57.1) (73.7) (2.2) (4.1) (2.6) (15.7) (24.6)
Gain on sale of investment in equity affiliates 0.1 - - 26.8 26.9 - - - - - - - - - -
Impact on operating income 0.7 11.2 (1.4) 18.1 28.6 (7.1) (23.7) (11.2) (67.2) (109.2) (3.4) (6.3) (5.8) (23.6) (39.1)
- - -
Debt extinguishment costs (10.6) - (5.2) - (15.8) - - - - - - - - (16.4) (16.4)
Bridge loan commitment fees - interest expense (1.9) - - - (1.9) - - - - - - - - - -
Other income (expense), net 1.4 - - - 1.4 - 0.5 0.1 0.1 0.7 - - 0.1 - 0.1
Impact on income before income taxes (10.4) 11.2 (6.6) 18.1 12.3 (7.1) (23.2) (11.1) (67.1) (108.5) (3.4) (6.3) (5.7) (40.0) (55.4)
Income tax benefit on above special items 3.9 (5.3) 1.9 (7.1) (6.6) 2.6 10.5 4.5 24.0 41.6 1.4 1.7 1.0 14.6 18.7
Tax adjustments (0.5) (0.2) (1.8) 0.3 (2.2) 1.6 5.2 0.1 3.6 10.5 (5.9) 23.9 9.6 (0.2) 27.4
Impact of special items on net income (7.0) 5.7 (6.5) 11.3 3.5 (2.9) (7.5) (6.5) (39.5) (56.4) (7.9) 19.3 4.9 (25.6) (9.3)
Diluted earnings per common share impact (0.08)$ 0.06$ (0.07)$ 0.12$ 0.04$ (0.03)$ (0.08)$ (0.07)$ (0.43)$ (0.60)$ (0.09)$ 0.22$ 0.06$ (0.30)$ (0.11)$
Cost of sales:
Restructuring Costs 0.1 (1.0) - (0.2) (1.1) -
Environmental remediation costs (1.7) (2.1) (2.4) (2.2) (8.4) (2.2)
Pension & other post-retirement benefits - mark-to-market adjustment - - - 0.3 0.3 -
Reimbursement of previously incurred environmental costs - 5.3 - 0.8 6.1 -
Acquisition related adjustments (2.5) (2.0) (2.0) (0.3) (6.8) (0.2)
Impact on cost of sales (4.1) 0.2 (4.4) (1.6) (9.9) (2.4)
Selling and administrative expense:
Restructuring, legal and other (5.9) (5.6) (5.3) (3.0) (19.8) 1.4
Unrealized gain on foreign currency option contracts - - - - - -
Pension & other post-retirement benefits - mark-to-market adjustment - - - 8.1 8.1 -
Acquisition/divestiture related costs (0.3) (0.6) (0.5) (0.6) (2.0) (0.7)
Impact on selling and administrative expense (6.2) (6.2) (5.8) 4.5 (13.7) 0.7
Gain on sale of investment in equity affiliates - - - - - -
Impact on operating income (10.3) (6.0) (10.2) 2.9 (23.6) (1.7)
Debt extinguishment costs - (0.4) - - (0.4) (0.3)
Bridge loan commitment fees - interest expense - - - - - -
Other income (expense), net 0.2 (0.1) - 0.1 0.2 0.1
Impact on income before income taxes (10.1) (6.5) (10.2) 3.0 (23.8) (1.9)
Income tax benefit on above special items 3.8 2.6 3.7 (1.8) 8.3 0.9
Tax adjustments (0.4) 3.7 3.0 1.3 7.6 0.1
Impact of special items on net income (6.7) (0.2) (3.5) 2.5 (7.9) (0.9)
Diluted earnings per common share impact (0.08)$ -$ (0.04)$ 0.03$ (0.10)$ (0.01)$
Recast Financial Information for Discontinued Operations
Table of Contents
GAAP Financial Information Recast for DSS Divestiture
Adjusted Financial Information Recast for DSS Divestiture
Business Segment and Data Recast for DSS Divestiture
Non-GAAP Reconciliations
Summary of Special Items
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