https://www.avient.com/sites/default/files/2024-12/AVNT Investor Day 2024 Presentation.pdf
to grow double-digits in
prioritized businesses through key growth vectors
5.
All Rights Reserved
2024 28
Solutions provider of
customized color and functionality
to enhance and improve polymers
Color, Additives and Inks – an overview
34%
37%21%
8%
2023 sales
by region
US, Canada
Asia
Europe,
Middle East,
Africa
Latin
America
$2.0B
• Differentiate and enhanced aesthetic appeal
of our customers’ products
• Enable sustainability through our solutions
• Safeguard and preserve packaged contents
• Extend product shelf life
#1
KEY E N D MARKETS
PACKAGING CONSUMER HEALTHCARE
BUILDING &
CONSTRUCTION
INDUSTRIAL TRANSPORTATION
Copyright © .
Amplify innovation to grow double-digits in prioritized businesses
through key growth vectors
5.
https://www.avient.com/sites/default/files/2021-12/Chemically Resistant Materials Whitepaper.pdf
Schematic representation of creep mechanism; chain alignment and void formation in response to applied stress.
3© 2021 Avient Corporation, 33587 Walker Road, Avon Lake, Ohio USA 44012
There are several key factors which can influence
the timeline to ESC failure:
1.
Table 1 shows a summary of the disinfectants and key features, such as the EPA registration number
and relevant ingredients.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520Credit%2520Suisse%2520w%2520non%2520GAAP%25206%252025%25202014.pdf
PolyOne Corporation Page 4
PolyOne Commodity to Specialty
Transformation
• Volume driven,
commodity
producer
• Heavily tied to
cyclical end
markets
• Performance largely
dependent on non-
controlling joint
ventures
2000-2005 2006 - 2009 2010 – 2014
2015 and
beyond
• Steve Newlin
appointed,
Chairman,
President and CEO
• New leadership
team appointed
• Implementation of
four pillar strategy
• Focus on value
based selling,
investment in
commercial
resources and
innovation to drive
transformation
• 18 consecutive
quarters of double-
digit adjusted EPS
growth
• Shift to faster
growing, high
margin, less cyclical
end markets
• Key acquisitions
propel current and
future growth, as
well as margin
expansion
• Established
aggressive 2015
targets
• Continue specialty
transformation
• Targeting $2.50
Adjusted EPS by
2015, nearly double
2013 EPS
• Drive double digit
operating income
and adjusted EPS
growth
PolyOne Corporation Page 5
Building &
Construction
13%
Industrial
12%
Transportation
18%
Wire & Cable
9%
Packaging
16%
Consumer
10%
HealthCare
11% Appliance
6%
Electronics &
Electrical
5%
2013 Revenues: $3.8 Billion
End Markets
2013 Revenues: $3.8 Billion
PolyOne
At A Glance
United
States
67%
Europe
14%
Canada
7%
Asia
6%
Latin
America
6%
Specialty
54%
PP&S
18%
Distribution
28%
$13
$31
$46 $46
$92 $96
$122
$195
$0
$50
$100
$150
$200
2006 2007 2008 2009 2010 2011 2012 2013
Specialty Operating Income
PolyOne Corporation Page 6
Old
PolyOne Transformation
*Operating Income excludes corporate charges and special items
2%
34%
43%
62% 64%
0%
20%
40%
60%
80%
100%
2005 2008 2010 2013 Q1 2014 2015
%
o
f
O
p
e
ra
ti
n
g
I
n
c
o
m
e
*
JV's Performance Products & Solutions Distribution Specialty
65-75%
Specialty OI $5M $46M $87M $195M $60M Target
Mix Shift Highlights Specialty Transformation
2015
Target
PolyOne Corporation Page 7
Confirmation of Our Strategy
The World’s Premier Provider of Specialized
Polymer Materials, Services and Solutions
Specialization Globalization
Operational
Excellence
Commercial
Excellence
PolyOne Corporation Page 8
-150.00%
-50.00%
50.00%
150.00%
250.00%
350.00%
450.00%
550.00%
POL S&P 500
Strategy and Execution Drive Results
$0.12
$0.27
$0.21
$0.13
$0.68
$0.82
$1.00
$1.31
'06 '07 '08 '09 '10 '11 '12 '13
‘06-‘13 EPS CAGR = 41%
EPS Share Price vs.
S&P 500
All time high of
$42.47
June 6th, 2014
PolyOne Corporation Page 9
2006 Q1 2014 2015
“Where we were” “Where we are” Target
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 13.8% 12 – 16%
Global Specialty Engineered
Materials
1.1% 11.6% 12 – 16%
Designed Structures & Solutions -- 6.5% 8 – 10%
Performance Products &
Solutions
5.5% 7.7% 9 – 12%
Distribution 2.6% 6.1% 6 – 7.5%
2) Specialty Platform % of
Operating Income
6.0% 64% 65 – 75%
3) ROIC* 5.0% 9.4% 15%
4) Adjusted EPS Growth N/A 42%
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
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
Healthcare
Consumer
Packaging and Additive Technology
Transportation
Unique and Innovative Solutions
https://www.dropbox.com/sh/dwe4t8aacvhb8ui/uD3p_bdglP/Presentation revise pics/GLS Beverage can closure XO 2.jpg
https://www.dropbox.com/sh/dwe4t8aacvhb8ui/-YgkycKypw/Anti-Counterfeiting release & images/GN1979.JPG
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 March 31, 2014
Debt Maturities & Pension Funding – 3/31/14
Net Debt / EBITDA* = 1.9x
$48
$317
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Debt Maturities
As of March 31, 2014
($ millions)
Coupon Rates: 7.500% 7.375% 5.250%
** includes US-qualified pension plans only *TTM 3/31/2014
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 1.4 million shares in
Q1 2014
Repurchased 6.4 million
shares since April 2013
13.6 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
Formula for Success
Innovation
Market
Beating
Performance
Excellence in Execution
PolyOne Corporation Page 17
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/2024-09/Chemical Resistance Technical Bulletin %281%29.pdf
MEDICAL DEVICE DISINFECTION—HOW TO PREVENT
CRACKING AND CRAZING
Understanding polymer performance is key to minimizing
disinfectant-related failures
DISINFECTANT-RELATED DAMAGE
ON POLYMER HOUSINGS
Strong chemicals used to reduce hospital-
acquired infections can damage equipment
and result in material failures, such as:
• Stress cracking
• Crazing
• Discoloration
CHEMICAL RESISTANCE REQUIREMENTS
VARY BY ENVIRONMENT
• Patient/exam rooms
• Operating and radiology rooms
• Reception areas
• Home (patient equipment & devices)
Healthcare devices must perform flawlessly in a myriad of challenging environments and engineers must
be certain their devices can withstand increasingly potent disinfectants, which have begun to outstrip
the performance of traditional polymers.
https://www.avient.com/sites/default/files/2023-01/Mevopur Healthcare Functional Additives_Laser Welding Additives for Medical Devices Application Bulletin.pdf
KEY CHARACTERISTICS
• Manufactured at four ISO 13485 certified sites,
providing global consistency and increased
security of supply
• Documented change control beyond CAS
number, reducing risk of change
• Available as additive concentrates, ready-to-use
additive formulations or ready-to-use additive/
colorant formulations for different polymers
REGULATORY SUPPORT
• Raw materials tested to:
- ISO 10993-1 and USP biological
evaluation
- European Pharmacopeia 3.1.3/3.1.5
(polyolefin)
- USP (polyethylene)
- ICH Q3D elemental impurities
• Registered Drug Master File (Type III) and/or
Device Master File
• Food contact established with FDA/EU*
APPLICATION BULLETIN
* FDA/EU compliance information available upon request; exceptions may occur
Healthcare use limitations apply—see below.
https://www.avient.com/sites/default/files/2020-09/crtm-panel-product-bulletin-2020.pdf
KEY CHARACTERISTICS
Avient CRTM panels offer significant benefits
to customers, including:
• Superior strength to weight ratio
• Unlimited length capability; widths
up to 108"
• Thermal insulation
• Ultra-low thermal conductivity
• Customized density, thickness, weight
and color
• Vibration damping and acoustic insulation
• Chemical and corrosion resistance
• Consistent cross-sections and quality
PRODUCT BULLETIN
Other thicknesses/architectures are available.
https://www.avient.com/sites/default/files/2022-08/2022 Glasforms EC Application _ Product Selection Guide.pdf
GLASFORMS™
ELECTRICAL COMPONENTS
Composite Materials for Power Transmission
and Distribution Products
APPLICATION & PRODUCT SELECTION GUIDE
KEY
CHARACTERISTICS
Extend the service life of electrical
transmission and distribution products
with Glasforms composite technologies.
https://www.avient.com/sites/default/files/2023-01/ECCOH XL Cross-Linkable Solutions _8001_ Product Bulletin.pdf
This technology offers manufacturing efficiencies
versus other crosslinking methods:
• Reduction in logistics management: No
secondary steps after manufacturing; no
need for E-beam radiation for effective
crosslinking
• Rapid ambient curing: Typically in less than
15 days depending on the climatic condition,
wall thickness and catalyst level
• No additional capital investment: The
material can be processed on a conventional
extrusion line
• Easy handling: ECCOH XL 8001 is used with
2.5–5% of catalyst masterbatch
• No pre-drying: No need to pre-dry the
material if it is stored correctly
PRODUCT BULLETIN
KEY CHARACTERISTICS
Avient’s ECCOH line of highly flame retardant,
non-halogenated materials limits the emission
of corrosive gases when burning.
https://www.avient.com/sites/default/files/2022-03/Trilliant HC Electrically Conductive Formulations for Pipette Tips Application Bulletin.pdf
KEY PERFORMANCE PROPERTIES1
PHYSICAL NOMINAL VALUE UNIT TEST METHOD
Density/Specific Gravity 1.00 ASTM D792
Melt Mass-Flow Rate (MFR) (230°C/2.16kg) 20 g/10 min ASTM D1238
MECHANICAL
Tensile Strength 15.0 MPa ASTM D638
Flexural Modulus 1400 MPa ASTM D790
Flexural Strength 35.0 MPa ASTM D790
IMPACT
Notched Izod Impact (Injection Molded) 150 J/m ASTM D256
ELECTRICAL
Surface Resistivity < 100000 ohms/sq ASTM D257
PROCESSING INFORMATION
INJECTION NOMINAL VALUE UNIT
Drying Temperature 80 to 90 °C
Drying Time 4.0 to 6.0 hr
Processing (Melt) Temperature 220 to 250 °C
Mold Temperature 30 to 80 °C
Trilliant™ HC Electrically Conductive Formulations
for Precision Performance Pipette Tips
A critical design consideration for pipette tips is
the accurate measurement of finite amounts of
liquid.
https://www.avient.com/sites/default/files/2023-12/_ECCOH LSFOH 5983 Formulations Product Bulletin.pdf
KEY CHARACTERISTICS ECCOH 5924FORMULATION
ECCOH 5981
FORMULATION
ECCOH 5983 UV
FORMULATION
Material Standards
BS7655-6, 1 (LTS1–4),
BS6724, IEC 60502
BS7655-6, 1 (LTS3) BS7655-6, 1 (LTS1–4)
Tear Strength at 23°C 7.7 N/mm 10 N/mm 11 N/mm
Tear Strength at 65°C 2.3 N/mm 5 N/mm 6.5 N/mm
Hot Pressure Test (6h at 90°C) 39% –