https://www.avient.com/sites/default/files/resources/Investor%2520Presentation%2520Mar19.pdf
Investor Day
POLYONE
I N V E S T O R
P R E S E N T A T I O N
M A R C H 2 0 1 9
FORWARD LOOKING STATEMENTS
PolyOne Corporation 2
USE OF
NON-GAAP
MEASURES
PolyOne Corporation 3
V I S I O N
PolyOne Corporation 4
To be the world’s
premier provider of
specialized polymer
materials, services and
solutions
C O R E
V A L U E S
P E R S O N A L
V A L U E S
Honesty IntegrityRespect
Operational
Excellence
Commercial
Excellence
Specialization
Globalization
Collaboration ExcellenceInnovation
To be the world’s
premier provider of
specialized polymer
materials, services
and solutions
S A F E T Y F I R S T
PolyOne Corporation 5
Injuries per 100 Workers
Spartech
Acquisition
1.3
1.1 1.1
0.85
0.65
0.57
0.54
0.97
0.84
0.74 0.74
0.69
0.51
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
PolyOne Corporation 6
P O L Y O N E
2 0 1 8 R E V E N U E | $ 3 . 5 B I L L I O N
United States
57%
16%
Latin
America
Canada
Distribution
Performance Products &
Solutions 19%
Specialty
Engineered
Color
Additives &
Inks 29%
Segment End Market Geography
Building &
Construction
Electrical &
Electronics
13%
2009 2010 2011 2012 2013 2014 2015 2016* 2017* 2018
$2.43
P R O O F O F P E R F O R M A N C E
C O N S E C U T I V E
Y E A R S
PolyOne Corporation 7
9
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
$2.06
$2.21
ROIC** 5.0% 14.1%
Operating Income
% of Sales
Color, Additives &
Inks
1.7% 15.1%
Specialty Engineered
Materials
1.1% 11.2%
Performance
Products
& Solutions
4.3% 10.0%
Distribution 2.6% 5.6%
A D J U S T E D E P S E X P A N S I O N
S U S T A I N A B L E P A T H T O D O U B L E - D I G I T E P S G R O W T H
PolyOne Corporation 8
P E O P L E P R O D U C T S P L A N E T P E R F O R M A N C E
Double digit
annual EPS
growth
strategic acquisitions
Innovate
600K-1M
commercial
resources 5-7%
Double acquired
Lean Six Sigma
commercial excellence
531
710
130
164
504
663
R&D / Technical Marketing Sales
PolyOne Corporation 9
Increased commercial headcount
+ 34%
+ 26%
+ 32%
I N V E S T M E N T I N COMMERCIAL RESOURCES D R I V I N G G R O W T H
Sustained revenue increases led
by organic business
$2.9 $2.9
$3.2
$3.5
2015 2016 2017 2018
Total
+ 9%
Organic
+ 5%
Revenue in billions of $
Total
+ 10%
Organic
+ 7%
Lead
Specialists
T H E E V O L V I N G C U S T O M E R R E L A T I O N S H I P
PolyOne Corporation 10
Expanded Path
Traditional Path
Strategic Accounts/
Field Sales
Business
Development
Customer
Service
Web and Social
Media
Inside Sales
PolyOne Corporation 11
Investments in digital and dedicated inside sales to
improve customer experience
110% increase in leads (from 6,000 to 12,700) driven
by website, phone, and online chat
EXPANDED PATH
A DDI N G C U S T O M E R T O U C H P O I N T S
24
Inside sellers
$11M
$109M
Inside sales/digital revenue
A L I G N I N G W I T H T R E N D S F O R G R O W T H
T R A N S P O R T A T I O N P A C K A G I N G H E A L T H C A R E C O N S U M E R
PolyOne Corporation 12
Facilitate
alternative
energy
solutions
Light-
weighting
Reduce
packaging
materials
Improve
recyclability
Reduce
spread of
infection
I N N O V A T I O N
PolyOne Corporation 13
Customization
55%
M&A
30%
Innovation
Pipeline
Innovation comes from Research & Development Spend
Vitality Index
$20
$56
Transformational
Adjacent
Core
3 H O R I Z O N S O F D E V E L O P M E N T
PolyOne Corporation 14
Market
Technical
I N N O V A T I O N
I N N O V A T I O N P I P E L I N E
PolyOne Corporation 15
PrototypeFrame
Opportunity
Scale-up & Test
Market
Build
Business Case
Commercial
Launch
(since 2017)
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
6
11
3
2
28 0
10
7
2
Breakthrough
Platform
Derivative
F L A M E
R E T A R D A N T
P O L Y M E R S
A D V A N C E D
C O M P O S I T E S
B A R R I E R
M A T E R I A L S
C O L O R A N T
T E C H N O L O G I E S
T H E R M O P L A S T I C
E L A S T O M E R S
I N N O V A T I O N S P O T L I G H T :
C O M P O S I T E S
PolyOne Corporation 16
C O M P O S I T E S R E F R E S H E R
PolyOne Corporation 17
Fiber
Polymer
Composite
S T R A T E G I C I N V E S T M E N T H I S T O R Y
Thermoplastic Composites
Long Fiber Reinforced Thermoplastics
Continuous Fiber Thermosets
Long Fiber Reinforced Thermoplastics
Continuous Fiber Thermosets
2012 2015 20162009 2011 2018
PolyOne Corporation
2019
18
C O M P O S I T E S I N T R A N S P O R T A T I O N
PolyOne Corporation 19
W A T E R C R A F TR A I L H E A V Y T R U C K
F I B E R - L I N E H I G H L I G H T S
PolyOne Corporation 20
$100M
Customer
Value
Fiber-Line
Fiber Processing
Capabilities
Polymer Formulation
Capabilities
P O L Y O N E A P P L I C A T I O N S I N F I B E R O P T I C C A B L E S
PolyOne Corporation 21
F I B E R O P T I C A L G R O W T H D R I V E R S
PolyOne Corporation 22
5G Networks
10x
8x
5G vs. 4G
PolyOne Corporation 23
Safety Technology Geography Service FinancialPeople
8-10% with
ability to double
I N V E S T - T O - G R O W M & A S T R A T E G Y
PolyOne Corporation 24
Capture
sourcing
synergies
Cross-sell
& blend
technology
8-10%
operating
I N V E S T - T O - G R O W M & A P L A Y B O O K
Protect
customers
Retain
employees
Implement LSS to
drive efficiency
improvements
Innovate with
combined
portfolio
Safety
First!
Leverage
PolyOne’s
global reach
Phase 1
Phase 2
Phase 3
18-20%
operating
Invest in
commercial
resources
I N V E S T - T O - G R O W P R O O F O F P E R F O R M A N C E
PolyOne Corporation 25
Commercial
Resources
Operating
Income
($ in millions)
Operating
Margins
243
340
$36
$96
20%
Established Acquisitions
(> 7 years)
+ 40% + 165% + 900 bps
I N V E S T - T O - G R O W D R I V I N G T H E F U T U R E
PolyOne Corporation 26
Commercial
Resources
Operating
Income
($ in millions)
Operating
Margins
138
181
251
$23 $25
$70
7% 8%
18-20%
Recent Acquisitions
PolyOne Corporation 27
Average
Company Size
# of
Possibilities
Rationale
$200M
S T R O N G P I P E L I N E
D R I V E N B Y F R A G M E N T E D M A R K E T
$0
$150
$300
$450
$600
$750
$900
2011 2012 2013 2014 2015 2016 2017 2018
$890M
R E T U R N I N G C A S H T O S H A R E H O L D E R S
O V E R $ 1 . 2 B I L L I O N S I N C E 2 0 1 1
PolyOne Corporation
$0.16
$0.20
$0.24
$0.32
$0.40
$0.48
$0.54
$0.70
$0.78
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
3-Year Dividend Plan
Cumulative Share Repurchases Increasing Annual Dividend
28
6.3%
14.1%
16-17%
2009 2018 Updated Expectations
R O I C D R I V E S S H A R E H O L D E R R E T U R N
PolyOne Corporation 29
PolyOne Corporation 30
W H Y I N V E S T I N P O L Y O N E ?
T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y
SERVICE:
T H E T I M E L E S S
D I F F E R E N T I A T O R
PolyOne Corporation 31
T A L E N T D E V E L O P M E N T
PolyOne Corporation 32
Leadership Program Participants
2012
2013
2015
47
86
2016
2018
125
169
315
Campus Hires
2008
2011
2017
25
90
47
PolyOne LSS Blackbelts
2008
2011
2018
67
220
147
2018 141
A U N I Q U E C U S T O M E R E X P E R I E N C E
Industrial
Design
IQ DESIGN LABS
PolyOne Corporation 33
Material
& Color
Expertise
Manufacturing
Expertise
3
14
Industrial designers
$0
$10M
$4M
$80M
Opportunity funnel New business revenue
LSS CUSTOMER FIRST
PolyOne Corporation 34
Customer Projects
2 104
3 D P R I N T I N G
B R I N G I N G N E W I D E A S T O L I F E
PolyOne Corporation 35
PolyOne Corporation 36
99.9%
up to 24 weeks
6 hours
C O L O R M A T R I X S E L E C T ™
I N N O V A T I N G W I T H P O L Y O N E
PolyOne Corporation 37
SEGMENT HIGHLIGHTS
C O L O R , A D D I T I V E S & I N K S
PolyOne Corporation 38
Solid
Colorants
Performance
Additives
Screen
Printing Inks
Liquid
Colorants
14%
Textiles
13%
Building & Construction
8%
8%
Appliances
Electrical &
Electronic 1%
Operating Income & MarginRevenue by Region
C O L O R , A D D I T I V E S & I N K S
2 0 1 8 R E V E N U E | O V ER $ 1 B I L L I O N
$4
$25
$104
$159
0.9%
5.5%
12.2%
15.1%
PolyOne Corporation 39
45%
14%
1%
Mexico
South
America
S P E C I A L T Y E N G I N E E R E D M A T E R I A L S
PolyOne Corporation 40
Engineered
Formulations
Advanced
Composites
Thermoplastic
Elastomers
21%
13%Healthcare
9%
9%
Building &
Construction 4%
Electrical &
Electronics
16%
S P E C I A L T Y E N G I N E E R E D M A T E R I A L S
Revenue by Region Operating Income & Margin
2 0 1 8 R EV EN U E | $ 6 4 6 M I L L I O N
PolyOne Corporation 41
$21
$57
$72
0.1%
5.1%
9.3%
11.2%
46%
24%
P E R F O R M A N C E P R O D U C T S & S O L U T I O N S
PolyOne Corporation 42
Specialty Vinyl
Solutions
Healthcare
Formulations
Smart Device
Flame Retardant
Polymers
Building &
16%Consumer
4%
Electrical &
4%
Asia
78%
Mexico
P E R F O R M A N C E P R O D U C T S & S O L U T I O N S
Operating Income & MarginRevenue by Region
2 0 1 8 R EV EN U E | $ 7 3 6 M I L L I O N
$40
$24
$56
$74
4.6%
3.6%
7.2%
10.0%
PolyOne Corporation 43
D I S T R I B U T I O N
EN D M A R K ET S & S U P P L I ER S
PolyOne Corporation 44
27%
22%
Electrical &
Building &
$20
$25
$63
$71
2.9%
4.0%
5.9%
5.6%
Operating Income & Margin2018 Revenue | $1.3 Billion
http://www.avient.com/Pages/VariationRoot.aspx
O V E R V I E W O F R A W M A T E R I A L P U R C H A S E S
PolyOne Corporation 45
T A R G E T E N D M A R K E T S &
A P P L I C A T I O N E X A M P L E S
PolyOne Corporation 46
Thermally Conductive
Chemical Resistant
Polymer Colorants
Elastomeric Grips and
Handles
Structural Composites
Antimicrobial Technologies
Anti-Counterfeiting
Target End Markets… Healthcare
Catheter Technologies
Under-hood Components
Target End Markets… Automotive
Interior Structural
Sound & Vibration
Management
Roof Systems
Air Management
Electronics and Cameras
Lighting
Exterior / Interior Trim
Braces & Brackets
Fasteners
Seals & Flaps
Target End Markets… Consumer
Thermally Conductive
Polymer Colorants
Elastomeric Grips and
Handles
Structural Composite
Oxygen Scavenger
Laser Marking Additives
Antistatic Technologies
UV Light Barrier Technologies
Cap & Closure Colorants
Process Optimization
Antioxidant Technologies
Density Modified
Target End Markets… Packaging
Luxury Packaging
GravitechTM Density Modified Polymers
Optimize Color Usage
OnColorTM Super Concentrates
Combat Bacteria Formation
WithStandTM Antimicrobial Technology
Medical Device Housings
Chemically Resistant Engineered Polymers
Color & Design Services
Outdoor Applications
Fiber Colorants
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(Dollars in millions, except per share data)
Senior management uses comparisons of adjusted net income from continuing operations attributable to PolyOne shareholders and diluted adjusted earnings per share (EPS)
from continuing operations attributable to PolyOne shareholders, excluding special items, to assess performance and facilitate comparability of results.
https://www.avient.com/sites/default/files/2020-09/versaflex-pf-technical-bulletin-sept-2020-pt-br.pdf
VERSAFLEX™ PF
Camada de aderência para para
películas protetoras de superfície
BOLETIM TÉCNICO
Propriedades Versaflex PF
MD6727
Versaflex PF
DM6741
Versaflex PF
DM6649
Versaflex PF
9512
Versaflex PF
MD6666
Versaflex PF
DM6748
Versaflex PF
DM6700
Características Baixa aderência
Baixa aderência;
usado para personalizar
aderência com MD6700
Aderência de
baixa a média Oferta de valor Aderência média
Gel/resíduos baixos Estrutura de baixa aderência Alta aderência
Resistência a descolamento Baixa Baixa a média Média Média a alta Média a alta Alta Alta
Aplicações Películas ópticas Eletrodomésticos Plásticos Construção/metais
expostos Metais acabados Aço/metais pintados Metais expostos
MFR a 190 °C/2,16 kg -- 4,5 17 5,4 21 4,8 6,5
MFR a 230 °C/2,16 kg 10 20 -- -- -- -- --
Gravidade específica, g/cc 0,92 0,91 0,92 0,92 0,94 0,94 0,94
Dureza, Shore A 50 49 37 38 37 31 30
G' a 23°C, Pa 28,0 x 105 10,4 x 106 8,3 x 105 -- 9,9 x 105 11,8 x 105 10,0 x 105
DMA Tg, °C -29 -30 -9 10 11 15 21
Película LDPE/Versaflex PF1 Descolamento de 180°, N/25 mm
Aço inoxidável
após 20 min a 25 °C 0,5 2,2 3,2 6,1 6,7 8,5 8,6
após 7 dias a 25°C 0,6 2,7 4,3 5,5 8,2 8,3 10,3
PMMA2
após 20 min a 25 °C 1,1 1,7 3,8 4,9 6,9 8,3 8,8
após 20 min a 75 °C 2,8 4,1 5,1 6,9 9,0 10,7 11,8
após 7 dias a 75°C 4,0 4,4 5,9 9,8 8,4 9,8 10,3
Policarbonato3
após 20 min a 25 °C 1,4 2,2 3,8 6,8 6,3 8,4 7,0
após 20 min a 75 °C 3,4 4,8 6,7 8,8 8,8 10,0 11,8
após 7 dias a 75°C 4,6 6,5 7,5 10,6 11,6 10,6 13,8
1 Espessura da película: LDPE 51 mícrons/Versaflex PF 25 mícrons
2 Arkema Plexiglas™ V052-100 (Plexiglas é uma marca comercial da Arkema France Corp).
3 Sabic Lexan™ L52-111 (Lexan é uma marca comercial da Sabic Innovative Plastics)
PROPRIEDADES FÍSICAS DE FORMULAÇÕES DE CAMADA DE ADERÊNCIA VERSAFLEX PF SELECIONADAS
DESCRIÇÃO DO PRODUTO
As formulações Versaflex™ PF são
especialmente desenvolvidas para a fabricação
de películas protetoras de superfície
coextrudadas de fácil aplicação, mantêm a
aderência com espessura mínima, descolam
suavemente e são removidas completamente,
sem nenhum ou com pouco resíduo.
OS BENEFÍCIOS DO VERSAFLEXTM
PF PARA PELÍCULAS PROTETORAS
DE SUPERFÍCIE:
• Aderência personalizável
• Processo de fabricação de etapa única
(coextrusão)
• Baixas emissões de compostos orgânicos
voláteis (COV) durante a fabricação
• Elimina operações secundárias de
revestimento e secagem
• Elimina produtos químicos líquidos
perigosos em comparação com os sistemas
de solventes
• Reduz custos de conversão em comparação
com revestimento
• Reduz o consumo de energia
MERCADOS E APLICAÇÕES
As formulações Versaflex PF, personalizáveis
com base no nível desejado de aderência, são
coextrudadas com películas protetoras para
fornecer apenas a quantidade certa de proteção
durante a fabricação, montagem, envio,
armazenamento e instalação de produtos
acabados em muitas indústrias e aplicações
de uso final, incluindo:
• Películas ópticas e painéis de exibição
de eletrônicos para o consumo
• Eletrodomésticos
• Construção e materiais de construção
• Móveis e armários
• Automotivo e outros transportes
100/0 90/10 80/20 70/30 60/40 40/60 30/70 20/80 10/90 0/100
0,9
1,1
2,0
2,4
2,8
3,7
3,8
4,9
0
1
2
3
4
6
7
8
6,5
1,6
MD6727
MD6748
MD6700
MD6666
9512
MD6649
MD6741
0
2
4
6
8
10
12
% de MD6741/MD6700
O grau de aderência pode ser personalizado para superfícies de substrato.
https://www.avient.com/sites/default/files/2020-09/versaflex-pf-technical-bulletin-sept-2020.pdf
TECHNICAL BULLETIN
VERSAFLEX™ PF
Tack Layer for
Surface Protective Films
Properties Versaflex PF
MD6727
Versaflex PF
MD6741
Versaflex PF
MD6649
Versaflex PF
9512
Versaflex PF
MD6666
Versaflex PF
MD6748
Versaflex PF
MD6700
Features Low Tack Low Tack; Used for tailoring tack
with MD6700 Low-Medium Tack Value Offering Medium Tack
Low Gel/Residuals Low Tack Build High Tack
Peel Strength Low Low-Medium Medium Medium-High Medium-High High High
Applications Optical Films Home Appliances Plastics Construction/Bare Metals Finished Metals Steel/Painted Metals Bare Metals
MFR @ 190°C/2.16 kg -- 4.5 17 5.4 21 4.8 6.5
MFR @ 230°C/2.16 kg 10 20 -- -- -- -- --
Specific Gravity, g/cc 0.92 0.91 0.92 0.92 0.94 0.94 0.94
Hardness, Shore A 50 49 37 38 37 31 30
G' @ 23°C, Pa 28.0 x 105 10.4 x 106 8.3 x 105 -- 9.9 x 105 11.8 x 105 10.0 x 105
DMA Tg, °C -29 -30 -9 10 11 15 21
LDPE/Versaflex PF Film1 180° Peel, N/25mm
Stainless Steel
after 20 min @ 25°C 0.5 2.2 3.2 6.1 6.7 8.5 8.6
after 7 days @ 25°C 0.6 2.7 4.3 5.5 8.2 8.3 10.3
PMMA2
after 20 min @ 25°C 1.1 1.7 3.8 4.9 6.9 8.3 8.8
after 20 min @ 75°C 2.8 4.1 5.1 6.9 9.0 10.7 11.8
after 7 days @ 75°C 4.0 4.4 5.9 9.8 8.4 9.8 10.3
Polycarbonate3
after 20 min @ 25°C 1.4 2.2 3.8 6.8 6.3 8.4 7.0
after 20 min @ 75°C 3.4 4.8 6.7 8.8 8.8 10.0 11.8
after 7 days @ 75°C 4.6 6.5 7.5 10.6 11.6 10.6 13.8
1 Film thickness: 51 micron LDPE/25 micron Versaflex PF
2 Arkema Plexiglas™ V052-100 (Plexiglas is a trademark of Arkema France Corp.)
3 Sabic Lexan™ L52-111 (Lexan is a trademark of Sabic Innovative Plastics)
PHYSICAL PROPERTIES OF SELECTED VERSAFLEX PF TACK LAYER FORMULATIONS
PRODUCT DESCRIPTION
Versaflex™ PF formulations are specially
developed for the manufacture of co-extruded
surface protective films that apply easily, maintain
tack with minimal build, peel smoothly and
remove completely with little-to-no residue or
ghosting.
BENEFITS OF VERSAFLEX PF FOR
SURFACE PROTECTIVE FILMS:
• Customizable tack
• Single-step manufacturing process (co-
extrusion)
• Low volatile organic compound (VOC)
emissions during manufacturing
• Eliminates secondary coating and drying
operations
• Eliminates hazardous liquid chemicals
compared to solvent systems
• Reduces converting costs versus coating
• Reduces energy consumption
MARKETS AND APPLICATIONS
Versaflex PF formulations, customizable
based on desired level of tack, are co-extruded
with protective films to provide just the right
amount of protection during the fabrication,
assembly, shipment, storage and installation of
finished goods in many industries and end-use
applications including:
• Optical films and display panels for consumer
electronics
• Home appliances
• Construction and building materials
• Furniture and cabinetry
• Automotive and other transportation
100/0 90/10 80/20 70/30 60/40 40/60 30/70 20/80 10/90 0/100
0.9
1.1
2.0
2.4
2.8
3.7
3.8
4.9
0
1
2
3
4
5
6
7
8
6.5
1.6
MD6727
MD6748
MD6700
MD6666
9512
MD6649
MD6741
0
2
4
6
8
10
12
% of MD6741/MD6700
Degree of tack can be customized for substrate surfaces.