https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202012%2520-%2520Welcome%2520and%2520Introduction.pdf
Hanna
consolidate
• Cultures clash –
commodity wins
• Dependent on
income derived from
commodity joint
ventures
The First 6 Years
• Globally organized along
three strategic platforms
• Non-core equity
investment dispositions
• Talent upgrades, discipline
instilled throughout
organization
• New CEO hired to
transform POL into
specialty business
�18 of 20 officers new
• Implemented four
pillar strategy
• Nearly 50% of
The Second 6 Years
History of PolyOne – A Transformation
• Focused on increasing
volume, not profits
• Heavily tied to cyclical
markets
2000 2006 2012
The FormationThe Formation
The TransformationThe Transformation
The New PolyOneThe New PolyOne
organization
• Demonstrated ability
to deliver
• Nearly 50% of
business operating
income derived from
Specialty Platform*
• Specialty assets
acquired
*Pro forma for ColorMatrix acquisition
Page 8
30%
50%
70%
90%
$10
$12
$14
$16
$18
PolyOnePolyOne
Stock Price
S&P 500 (relative performance)
Strategy and Execution Drive Results
| | | |
-50%
-30%
-10%
10%
30%
$0
$2
$4
$6
$8
$10
2006 2007 2008 2009 2010 2011 2012
Page 9
Four Pillar Strategy
The World’s Premier Provider of Specialized
Polymer Materials, Services & Solutions
Page 10
60%
80%
100%
%
o
f
O
p
ra
ti
g
I
co
m
*
Old
PolyOne
Transformation
2012
Target
“What We Said”
Mix Shift Highlights Specialty Transformation
Ahead of Schedule
*Operating Income excludes Corporate Charges
** Pro Forma for the acquisition of ColorMatrix and divestiture of SunBelt
2%
34%
42%
50% >50%
0%
20%
40%
2005 2008 2011 2011** 2012
%
o
f
O
p
ra
ti
g
I
co
m
*
JV's PP&S Distribution Specialty
Specialty OI $5M $46M $89M $117M “What We Said”
Page 11
2007 2012 Target 2011
“Where we were” “What we said” “Where we are”
1) Operating Income %
Specialty 3.2% 10% - 12% 8.9%
PP&S 6.1% 8% - 10% 7.2%
Pro forma ColorMatrix
Proof of Performance
Distribution 3.0% 4% - 5% 5.6%
2) Specialty Platform
sss% of Operating Income
20% >50% 50%
3) Specialty Vitality
Index
21% 35% - 40% 49%
4) ROIC* (pre-tax) 11% >15% 16%
5) Sales outside the US 37% >40% 40%
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
Page 12
2011
Pro forma ColorMatrix
2015 Target
“Where we are” “Where we expect to be”
1) Operating Income %
Specialty 8.9%
PP&S 7.2%
12 – 16%
9 – 12%
Elevating our Expectations and Yours
PP&S 7.2%
Distribution 5.6%
2) Specialty Platform
% of Operating Income
50%
3) ROIC* (after-tax) 10%
4) Adjusted Annual
EPS Growth
3 yr CAGR = 71%
9 – 12%
6 – 7.5%
65 – 75%
15%
Double Digit Expansion
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
Page 13
• Four pillar strategy, coupled with our ability to
execute is driving results
• Strong leadership team driving growth & executing
• Innovation and services provide differentiation and
How do we get there?
https://www.avient.com/sites/default/files/2021-07/fiber-line-global-product-selection-guide.pdf
FIBER-LINE™
High Performance
Synthetic Fibers
PRODUCT SELECTION GUIDE
FIBER-LINE™ HIGH PERFORMANCE SYNTHETIC FIBERS
Kevlar® Para-Aramid Nomex®
Meta-Aramid Vectran® LCP Zylon® PBO Carbon
Fiber UHMWPE PET Polyester Fiberglass Novoloid Technora®
Filament Yarn
TECHNICAL PROPERTIES Standard
High
Modulus
Standard
Standard
High
Standard
High
Standard
Standard
High
High
Tenacity
Low
Shrink E-Glass S-Glass Standard
Standard
Breaking Tenacity (g/d) 23.0 23.6 5.0 23.0 30.0 42.0 42.0 23.0 28.0 38 9.3 8.4 6.0 - 7.3 6.7 - 9.4 1.5 28.0
Specific Gravity (Ratio) 1.44 1.44 1.38 1.40 1.40 1.54 1.56 1.80 0.97 0.97 1.38 1.38 2.58 2.48 1.27 1.39
Elongation at Break (%) 3.5 2.5 30.0 3.8 2.8 3.5 2.5 1.5 3.5 3.1 14.6 19.5 3.5 5.5 30.0 - 40.0 4.6
Tensile Modulus (g/d) 555 885 125 600 830 1200 1800 1480 850 1250 120 70 200–275 140–170 2.5–5.0 590
Equilibrium Moisture Regain
at 55% RH (%) 5.0 5.0 4.5
https://www.avient.com/sites/default/files/2021-06/fl.datasheet-extrusion.pdf
FIBER-LINE® makes no warranty, express or implied, that the product
EPC
EPC BARE PERFORMANCE
Operating Temperature Range -65°C - 80°C
FEP BARE PERFORMANCE
Operating Temperature Range -195°C - 200°C
Flex Properties O
EXTRUSION FIBERS PROCESSES PRODUCTS
ETFE BARE PERFORMANCE
Operating Temperature Range -100°C - 150°C
HYTREL BARE PERFORMANCE
Operating Temperature Range -70°C - 125°C
ETFE
FEP HYTREL
This data is provided for informational purposes only, and does not constitute a specification.
https://www.avient.com/sites/default/files/2021-10/remafin-ep-white-masterbatches-for-pharma-application-bulletin_0.pdf
KEY CHARACTERISTICS
• Manufactured under change control principles
beyond CAS number (similar level as MEVOPUR
concentrates), reducing risk of change
• Free from animal-derived substances and
phthalates
• Suitable for blown film, injection molding,
blow molding and extrusion
REGULATORY SUPPORT
• Raw materials tested to:
- ISO 10993-1
- USP chapters , including Class VI,
a requirement for ophthalmic and nasal drugs
- European Pharmacopeia 3.1.3/3.1.5
(polyolefin)
- USP (polyethylene)
- ICH Q3D elemental impurities
- USP and USP light transmission
• Registered Drug Master File (Type III)
• Food contact compliance established with
FDA/EU*
APPLICATION BULLETIN
CARRIER
MATERIAL
PIGMENT
CONTENT/TYPE
LIGHT
FASTNESS
THERMAL
STABILITY
PRODUCT
CODE
HDPE 50% TiO2
8 300°C PH00075525
LLDPE 60% TiO2
8 300°C PL00075542
LLDPE 70% TiO2
8 300°C PL00075545
PP 50% TiO2
8 300°C PP00075717
Healthcare use limitations apply—see below.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520Sidoti%2520wNonGAAP%2520Rec.pdf
Page 3
Strategy and Execution Drive Results
90%
$22
$24
PolyOne
Stock Price
50%
$18
$20
$22
S&P 500 (relative performance)
30%
$12
$14
$16
S&P 500 (relative performance)
‐10%
10%
$6
$8
$10
50%
‐30%
$0
$2
$4
$
|
‐50%$0
2006 2007 2008 2009 2010 2011 2012 2013
Page 4
Four Pillar Strategy
The World’s Premier Provider of SpecializedThe World s Premier Provider of Specialized
Polymer Materials, Services & Solutions
Page 5
Spartech – Compelling Strategic Rationale
• Spartech expands PolyOne’s specialty portfolio with adjacent
technologies in attractive end markets
Bolt on acquisition with opportunity for global expansion as only Bolt‐on acquisition with opportunity for global expansion, as only
6% of Spartech’s revenues are outside of North America
• PolyOne has a proven management team with a track record of
transformational success
• Preliminary synergy estimated at $65 million run rate by end of
3year 3
Significant opportunity to expand profitability by leveraging
PolyOne’s four pillar strategy
• Substantial potential share price appreciation for all
shareholders
f f ll / $ Accretive to EPS in first full year post‐acquisition / $0.50 once
synergies realized
Page 6
Mix Shift Highlights Specialty Transformation
Old
PolyOne Transformation
100%
2015
Target
80%
In
co
m
e*
65 – 75%40%
60%
f O
pe
ra
tin
g
34% 43% 45%
65 75%
20%
o
f
2%0%
2005 2008 2010 2012 2015
Specialty OI $5M $46M $87M $114M Target
*Operating Income excludes corporate charges and special items
JV's PP&S Distribution Specialty
Page 7
Proof of Performance
2007 2012 2015
“Where we were” “Where we are” “Where we Where we were Where we are expect to be"
1) Operating Income %
Specialty 3.2% 9.1% 12 – 16%
PP&S 6.1% 9.0% 9 – 12%
Distribution 3.0% 6.4% 6 – 7.5%
2) Specialty Platform
sss% of Operating Income 20% 45% 65 – 75%
3) ROIC* ( ft t ) 7% 11% 15%3) ROIC* (after‐tax) 7% 11% 15%
4) Adjusted EPS Growth** N/A 4 yr CAGR = 55% Double Digit
Expansion
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
**4 yr EPS CAGR calculated using 2012 adjusted EPS vs 2008 adjusted EPS
Page 8
Proof of Performance
Spartech Opportunity
Intermediate
PolyOne Spartech Opportunity
2006 2012 Today Goal
“Where we
were”
“Where we
are”
“Where
Spartech is”*
“Where we
can go”were are Spartech is can go
Specialty
Operating
Margin
1.5% 9.1% 2.2% 8.0% – 10.0%
Margin
Page 9
*Pro Forma results include Spartech corporate allocations for FY12 ended November 3, 2012
PolyOne
14%
Latin
America
3% Distribution
2012 Revenues: $4.2 Billion* 2012 Revenues: $4.2 Billion*
United
States
14% 5%
PP&S
20%Specialty
57%
Building & HealthCare
1.02
1.20
$1.20
$1.40
ha
re
End Markets* EPS Growth
Construction
14%
17%
Industrial
9%
0.27 0 21
0.79
$0.40
$0.60
$0.80
$1.00
Ad
ju
st
ed
E
ar
ni
ng
s P
er
S
Electrical &
0.12
0.21 0.13
$0.00
$0.20
2006 2007 2008 2009 2010 2011 2012
Page 10
* Pro Forma includes FY2012 results for Spartech (11/03/12 YE) and Glasforms
Specialty
U it d
2012 Revenues: $2.4 Billion* Solutions
United
States
59%
9%
Latin
America
Building &
C t ti
HealthCare
o
f S
al
es
12-16%
End Markets* Expanding Profits
Construction
Electrical &
Industrial
15%
1.5%
3.2% 4.3%
5.3%
8.4% 9.1%
O
pe
ra
tin
g
In
co
m
e
Page 11
2006 2007 2008 2009 2010 2011 2012 2015
O
Target* Pro Forma includes FY2012 results for Spartech (11/03/12 YE) and Glasforms
Designed Structures and Solutions
United States
2012 Revenues: $0.85 Billion* Solutions
84%
Latin America
4% Building & Construction
Sign & Advertising
3%
Recreation & Leisure
Pool & Spa
1%
Distribution &
Thermoform
2% Operating Income % of Sales
2012 Revenue by Industry Segment* Expanding Profits**
Electrical & Electronics
23%Industrial
3%
2.2%
8 ‐ 10%
1%
HealthCare
2012 2015
Target
Page 12
*Pro Forma includes FY2012 results for Spartech (11/03/12 YE)
**Pro Forma results include Spartech corporate allocations for FY12
Positioned for Earnings Growth
2015 Target
Rev: $5B
Adj.
EPS: $1.20
Proforma Debt Maturities & Liquidity Summary – 12/31/12
(Reflecting Financing & Spartech Acquisition)
• Total Debt at 12/31/12
h
$1,010
$297
$360 $300
$400
Debt Maturities
As of December 31, 2012
($ millions)
Less: Cash
Net Debt
213
$797
$50
$297
$100
$200
• Available Liquidity
Cash $213
$800 Debt Maturities
As of December 31, 2012
P f f 2/13 Fi i
$50 $0
2015 2017 2020
Interest Rates: 7.500% 5.000% 7.375%
Cash
ABL Availability
Total Liquidity
$213
271
$484
$600
$400
$600
Proforma for 2/13 Financing
($ millions)
Total Liquidity
• Net Debt / EBITDA = 2.0x*
$484
$50
$360
$0
$200
• Net Debt / EBITDA = 2.35x**
$50$0
2015 2020 2023
Page 14
Interest Rates: 7.500% 7.375% 5.250%
*Assumes $65 million of synergies related to Spartech acquistion
**Assumes no synergies related to Spartech acquistion
Use of Cash
Share DividendsOrganic
G Acquisitions
• Repurchased 1 2
Repurchase
• Introduced a
Dividends
• Expanding our
Growth
T t th t d
Acquisitions
• Repurchased 1.2
million shares in
2012
• 20.0 million
shares are
il bl f
• Introduced a
quarterly dividend
in Q1 2011 and
increased in Q1
2012 (25%) and
Q1 2013 (20%)
• Expanding our
sales, marketing,
and technical
capabilities is top
priority
• Investing in
• Targets that expand our:
• Specialty offering
• End market presence
• Geographic footprint
available for
repurchase under
the current
authorization
Q1 2013 (20%)
• Objective of
maintaining and
growing
Investing in
operational and
LSS initiatives
(including synergy
capture)
• CAPEX
• Synergy opportunities
• Adjacent material solutions
Proforma Cash Balance = $213M
N t D bt / EBITDA* 2 0X
CAPEX
Net Debt / EBITDA* = 2.0X
*Adjusted EBITDA assumes synergies related to the Spartech acquisition are realized at close; preliminary synergies estimated at $65M and are expected to be achieved over a 3-year period
Page 15
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/2023-08/Complet - Aftermarket Motor Mount - case study snapshot.pdf
AFTERMARKET PARTS
MANUFACTURER
M O T O R M O U N T
• Reduced part weight with retained performance
• High strength
• Corrosion resistance
• Fatigue resistance
• Facilitated lightweighting with a long glass fiber
PA66 composite that matched the performance of
the incumbent metal part
• Met strength and corrosion requirements while
achieving cost savings and reduced processing
steps versus a die cast aluminum part
• Relieved performance fears with mold flow
analysis and hands-on technology support
• Sampled quickly to accelerate speed to market
KEY REQUIREMENTS
METAL REPLACEMENT
LEARN MORE
WHY AVIENT?
https://www.avient.com/sites/default/files/2020-08/complet-lft-trail-bicycle-suspension-link.pdf
Complet LFT - Trail Bicycle Suspension Link
PERFORMANCE
CYCLING OEM
T R A I L B I C Y C L E S U S P E N S I O N
L I N K
• Weight reduction to reduce cyclist fatigue
• Structural strength and toughness capability
• Endure repeated piston actions during use
• Replaced aluminum to reduce weight 33%
• Optimized design for metal-to-thermoplastic
conversion
• Conducted FEA performance analysis to
confirm composite met specifications
Complēt™ Long Carbon Fiber ETPU
Composite
KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2023-05/complet-lft-moisture-resistant-watercraft-steering-column-application-snapshot.pdf
PERSONAL
WATERCRAFT OEM
S T E E R I N G C O L U M N
• Similar strength performance to existing aluminum assembly
• Withstand outdoor UV exposure
• Weight reduction for improved performance
• Corrosion and moisture resistance
• Premium aesthetic
• Provided a material that met application load
requirements and allowed for part
consolidation
• Delivered confidence in changing material
through design consultation, robust Mold Flow
simulation support, and UV customization
• Incorporated carbon fiber to support a
marketing story
Complēt™ Hybrid Moisture Resistant Composite
KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2023-03/Trilliant HC glass-filled PK - Biopharma Tubing Clamps.pdf
BIOPHARMACEUTICAL
SUPPLY COMPANY
T U B I N G C L A M P
• High impact and wear resistance
• Low moisture uptake
• Comparable dimensional stability to nylon
• Eco-conscious alternative to PA66 and PA6
• Delivered a comparable alternative to nylons
during supply shortages, resulting in rugged
performance and a lower carbon footprint
• Provided improved chemical resistance to
nylon clamps to withstand repeated cleanings
from harsh disinfectants
• Offered a global manufacturing footprint to
support future expansion of the end products
to markets outside the Americas
Trilliant™ HC 8910 Glass-Filled Polyketone
Thermoplastics
KEY REQUIREMENTS
WHY AVIENT
AVIENT SOLUTION
DURABILITY + MATERIAL AVAILABILITY
LEARN MORE
Copyright © 2023, Avient Corporation.
https://www.avient.com/sites/default/files/2023-05/Nymax - Utility Box - Application Snapshot.pdf
LEARN MORE
INDUSTRIAL
HOUSING OEM
U T I L I T Y B O X S T I F F E N E R
• Meet material stiffness requirement of 12,000 MPa flex
modulus
• Stable raw material supply
• Formulated a solution that meets economic
and mechanical property requirements
• Quickly sampled and qualified the new
material at multiple facilities
• Enabled manufacturing at scale by using
packaging that minimized moisture uptake
during transit and storage
• Provided a stable supply of post-industrial
recycled (PIR) PA66 to offset prime PA66
Nymax™ REC Glass-Filled Formulation
KEY REQUIREMENTS
WHY AVIENT?