https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520Sidoti%2520wNonGAAP%2520Rec.pdf
In addition, operating income
before special items and adjusted EPS are components of various PolyOnebefore special items and adjusted EPS are components of various PolyOne
annual and long‐term employee incentive plans
Platform operating income mix percentage 2005Y 2006Y 2007Y 2008Y 2009Y 2010Y 2011Y
Global Specialty Engineered Materials $ 0.4 $ 3.9 $ 4.9 $ 17.6 $ 20.6 $ 49.7 $ 45.9
Global Color, Additives and Inks 4.3 8.9 25.7 28.1 25.2 37.7 43.4
Specialty Platform $ 4.7 $ 12.8 $ 30.6 $ 45.7 $ 45.8 $ 87.4 $ 89.3
Performance Products and Solutions 75.7 64.2 65.8 31.3 33.1 54.0 62.4
Distribution 19.5 19.2 22.1 28.1 24.8 42.0 56.0
SunBelt Joint Venture 91.9 102.9 34.8 28.6 25.5 18.9 5.0
Corporate (51.5) 34.5 (73.3) (425.1) 7.9 (27.7) 20.3
Operating income (loss) GAAP $ 140.3 $ 233.6 $ 80.0 $ (291.4) $ 137.1 $ 174.6 $ 233.0
Less: Corporate operating expense (income) 51.5 (34.5) 73.3 425.1 (7.9) 27.7 (20.3)
Operating income excluding Corporate $ 191.8 $ 199.1 $ 153.3 $ 133.7 $ 129.2 $ 202.3 $ 212.7
Specialty platform operating mix percentage 2% 6% 20% 34% 35% 43% 42%
Platform operating income mix percentage 2012Y
Global Specialty Engineered Materials $ 47.0
Global Color, Additives and Inks 66.8
Specialty Platform $ 113.8
Performance Products and Solutions 74.9
Distribution 66.0
Corporate (87.6)
Operating income GAAP $ 167.1
Less: Corporate operating expense 87.6
Operating income excluding Corporate $ 254.7
Specialty platform operating mix percentage 45%
Platform sales and operating income (OI) 2006Y 2007Y 2008Y 2009Y 2010Y 2011Y
Global Specialty Engineered Materials Sales $ 345.3 $ 384.4 $ 514.0 $ 402.9 $ 517.4 $ 575.1
Global Color, Additives and Inks Sales 531.8 560.5 554.3 459.8 527.4 544.6
Specialty Platform Sales $ 877.1 $ 944.9 $ 1,068.3 $ 862.7 $ 1,044.8 $ 1,119.7
Performance Products and Solutions Sales 1,166.2 1,086.8 1,001.4 667.7 776.3 865.4
PolyOne Distribution Sales 732.8 744.3 796.7 625.1 911.9 996.5
Corporate and Eliminations (153.7) (133.3) (127.7) (94.8) (111.1) (118.1)
Total Sales $ 2,622.4 $ 2,642.7 $ 2,738.7 $ 2,060.7 $ 2,621.9 $ 2,863.5
Global Specialty Engineered Materials OI $ 3.9 $ 4.9 $ 17.6 $ 20.6 $ 49.7 $ 45.9
Global Color, Additives and Inks OI 8.9 25.7 28.1 25.2 37.7 43.4
Specialty Platform OI $ 12.8 $ 30.6 $ 45.7 $ 45.8 $ 87.4 $ 89.3
Performance Products and Solutions OI 64.2 65.8 31.3 33.1 54.0 62.4
PolyOne Distribution OI 19.2 22.1 28.1 24.8 42.0 56.0
Sunbelt Joint Venture OI 102.9 34.8 28.6 25.5 18.9 5.0
Corporate and eliminations (4.6) (25.5) (28.9) (40.8) (32.5) (26.4)
Special items in OI 39.1 (47.8) (396.2) 48.7 4.8 46.7
Operating income (loss) GAAP $ 233.6 $ 80.0 $ (291.4) $ 137.1 $ 174.6 $ 233.0
Sunbelt equity income (107.0) (40.8) (32.5) (29.7) (23.1) (5.7)
Special items in OI (39.1) 47.8 396.2 (48.7) (4.8) (46.7)
Operating income adjusted $ 87.5 $ 87.0 $ 72.3 $ 58.7 $ 146.7 $ 180.6
Global Specialty Engineered Materials - OI
% of sales 1.1% 1.3% 3.4% 5.1%
9.6%
8.0%
Global Color, Additives and Inks - OI % of
sales 1.7% 4.6% 5.1% 5.5%
7.1%
8.0%
Specialty platform OI - % of sales 1.5% 3.2% 4.3% 5.3% 8.4% 8.0%
PP&S operating OI - % of sales 5.5% 6.1% 3.1% 5.0% 7.0% 7.2%
Distribution OI - % of sales 2.6% 3.0% 3.5% 4.0% 4.6% 5.6%
PolyOne OI adjusted - % of sales 3.3% 3.3% 2.6% 2.8% 5.6% 6.3%
Platform sales and operating income (OI) 2012Y 2012PF
Global Specialty Engineered Materials Sales $ 543.6 $ 779.5
Global Color, Additives and Inks Sales 703.5 753.8
Designed Structures & Solutions 847.4
Specialty Platform Sales $ 1,247.1 $ 2,380.7
Performance Products and Solutions Sales 837.0 902.8
PolyOne Distribution Sales 1,030.3 1,030.3
Corporate and Eliminations (121.8) (121.8)
Total Sales $ 2,992.6 $ 4,192.0
Global Specialty Engineered Materials OI $ 47.0
Global Color, Additives and Inks OI 66.8
Specialty Platform OI $ 113.8
Performance Products and Solutions OI 74.9
PolyOne Distribution OI 66.0
Corporate and eliminations (33.7)
Special items in OI (53.9)
Operating income - GAAP $ 167.1
Special items in OI 53.9
Operating income adjusted $ 221.0
Global Specialty Engineered Materials - OI % of sales 8.6%
Global Color, Additives and Inks - OI % of sales 9.5%
Specialty platform OI % of sales 9.1%
PP&S operating OI % of sales 9.0%
Distribution OI % of sales 6.4%
PolyOne OI adjusted, % of sales 7.4%
Adjusted EPS 2006Y 2007Y 2008Y 2009Y 2010Y 2011Y 2012Y
Net Income attributable to PolyOne common
shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 162.6 $ 172.6 $ 71.9
SunBelt equity earnings, after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) -
Special items, after tax (21.2) 41.4 310.0 (31.0) 15.8 (30.5) 35.7
Tax adjustments (30.0) (30.7) 147.2 (44.9) (88.3) (42.3) 0.5
Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 75.4 $ 96.1 $ 108.1
Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8
Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.79 $ 1.02 $ 1.20
Average Debt Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Average
PolyOne Debt $ 707.0 $ 706.4 $ 705.8 $ 705.2 $ 706.9 $ 706.3
Average Equity Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Average
PolyOne shareholders’ equity $ 588.3 $ 611.3 $ 604.3 $ 629.3 $ 629.1 $ 612.5
Adjusted EBITDA 2012
PolyOne Income before income taxes $ 113.0
PolyOne Interest expense, net 50.8
PolyOne Depreciation and amortization 69.8
PolyOne Special items in EBITDA 55.1
PolyOne Adjusted EBITDA $ 288.7
Pro forma Spartech EBITDA * 56.3
Pro forma EBITDA * $ 345.0
* Amount excludes expected synergies.
Pro Forma Debt 2012
7.500% debentures due 2015 $ 50.0
7.375% senior notes due 2020 360.0
5.250% senior notes due 2023 600.0
Other debt 14.0
Pro Forma Debt $ 1,024
Specialty Platform Gross Margin Percentage 2006 2012
Global Specialty Engineered Materials Sales $ 345.3 $ 543.6
Global Color, Additives and Inks Sales 531.8 703.5
Specialty Platform Sales $ 877.1 $ 1,247.1
Global Specialty Engineered Materials Gross Margin $ 41.6 $ 129.8
Global Color, Additives and Inks Gross Margin 83.6 220.6
Specialty Platform Gross Margin $ 125.2 $ 350.4
Specialty Platform Gross Margin Percentage 14.3% 28.1%
https://www.avient.com/sites/default/files/2024-12/AVNT Investor Day 2024 Presentation.pdf
Healthcare
Drug delivery devices Engineered materials
for healthcare
Functional additives
for lightweighting
Composites for
Defense and law
enforcement
in Color, Additives and Inksin Color, Additives and Inks in Specialty Engineered Materials in Specialty Engineered Materials
Copyright © .
2024 13
Building new platforms of scale – some examples today...
Color, Additives and Inks – strategic drivers
Digital
for operational excellence
Leadership, talent
1.
Prioritizing and expediting development and commercialization of high-growth functional additives
2.
https://www.avient.com/sites/default/files/2021-12/Chemically Resistant Materials Whitepaper.pdf
In addition to surviving the
treatment period, if the sample did not exhibit signs
of significant crazing or cracking then an additional
positive mark was granted.
Regarding tensile
properties, three additional categories granted
positive marks:
1.
In addition to Virex® TB,
seven other disinfectants
common to the healthcare
and consumer industry
were tested and the results
were recorded in Table 3.
https://www.avient.com/sites/default/files/2022-04/Sustainable Material Answers_ Recycled PET 2022.pdf
Fortunately, there are several kinds
of additives that don’t affect future recyclability of PET that can used during
processing to correct for this yellowing.
Similar to the ones that correct yellowing, there are special additives that
“scavenge” or otherwise reduce the levels of acetaldehyde.
In addition, chain extender
additives can improve IV for better strength and performance.
https://www.avient.com/sites/default/files/2023-10/Value Added Services Brochure.pdf
SERVICES OVERVIEW
COLORANTS
& ADDITIVES
VALUE-ADDED
SERVICES
At Avient, our goal is to provide
premier colorant and additive
technologies paired with world-class
services that support our specialized
and sustainable solutions.
When you work with us, our experts can provide
you with additional resources and value-added
services that expand your product development
and manufacturing capabilities.
A RANGE OF WORLD-CLASS SERVICES
COLOR TECHNOLOGY
Custom matching, saturated colors, and special
effects to fill market niches, eliminate secondary
operations, and strengthen your brand
PCR COLOR PREDICTION SERVICE
Digital prediction tool illustrating color possibilities
and limitations of post-consumer recycled (PCR)
content to simplify decision making and shorten
time to launch
PRODUCT CARBON FOOTPRINT (PCF)
CALCULATOR
Methodology that evaluates the carbon footprint of
Avient solutions, contributing a data point to your
overall carbon footprint and supporting credible
reporting
AVIENT DESIGN
A highly specialized group of industrial designers
and project engineers that provides advanced
design and detailed analysis to foster higher levels
of innovation
TESTING AND VALIDATION
Fully accredited and in-house testing capabilities
to generate data for insight into material behavior,
environmental effects, and more
REGULATORY SUPPORT
Dedicated product stewardship team assisting
with new product approvals to reduce regulatory
overhead and minimize risk
COLOR AND ADDITIVE DESIGN SERVICES
Trend and color insights along with product
development assistance from concept through
commercialization to optimize design and gain
speed to market
RESEARCH AND DEVELOPMENT
Long-term strategic solution development that
addresses complex and unmet product innovation
needs
APPLICATION DEVELOPMENT TECHNICAL
SUPPORT
Technical experts specifically trained to work
directly with your team to solve definitive
application challenges with new or existing
approaches
FIELD TECHNICAL SERVICE
Onsite support for tool design, startup, and
production optimization to gain manufacturing
efficiencies and help resolve technical issues
Common compliance categories
where we can assist:
• UL
• USP Class VI
• ISO 10993
• ISO 1345
• REACH
• RoHS
• FDA
• EU 10/2011
• China GB
• MERCOSUR
• USP
• ISP
• CPSIA
• Prop 65
ColorWorks™ Design &
Technology Centers
Our global ColorWorks centers are
focused on design, technology, and
innovation for plastics.
https://www.avient.com/sites/default/files/2022-02/ColorMatrix Triple A Brochure.pdf
COLORMATRIX
TRIPLE A™
Additive technology which
reduces acetaldehyde
levels in PET packaging
TECHNICAL DESCRIPTION
Acetaldehyde (AA) forms as a result
of thermal degradation during PET
melt-processing and can increase
as temperature, pressure and shear
in processing rises.
HANDLING AND USAGE RATES
Triple A is a dispersion which can be
supplied individually or in combination
with other ColorMatrix colorant and
additive technologies.
The additive has no
impact on either color or clarity of
containers and is easily combined with
ColorMatrix color formulations.
https://www.avient.com/sites/default/files/2023-04/ColorMatrix UV Brochure.pdf
COLORMATRIX™
ULTIMATE™ UV LIGHT
BLOCKING ADDITIVES
UV absorbing additive technology with
broadband protection for PET and rPET
COLORMATRIX™ ULTIMATE™ UV TECHNOLOGY
The ColorMatrix™ Ultimate™
UV range offers cost-
effective light blocking
for UV sensitive products
packaged in PET.
Global formulations
Ultimate UV technology is formulated for global
use and can be used in combination with other
ColorMatrix colorant and additive solutions.
Handling
Ultimate UV is supplied as a liquid dispersion
which offers convenient, accurate and
consistent dosing from minimal product
addition.
https://www.avient.com/sites/default/files/2021-09/colormatrix-flexcart-liquid-metering-system-flyer.pdf
PlanetPak containers are optimized and
recommended for Avient liquid colors
and additives.
What is the normal liquid addition rate?
Avient can provide support and assistance on every aspect of
liquid color and additive processing.
https://www.avient.com/sites/default/files/2024-11/ColorMatrix Lactra LX Product Bulletin.pdf
ColorMatrix™ Lactra™ LX Light Blocking Additive for PET
A bright white, light blocking technology for UHT dairy packaging
ColorMatrix™ Lactra™ LX Light Blocking Additive
provides high-performance light blocking
technology and protection for liquid dairy products
in monolayer polyethylene (PET) bottles.
It is
a bright white, solid masterbatch additive that
protects contents from visible light and extends shelf
life.
To increase the user-friendly aspects of UHT dairy
packaging, ColorMatrix Lactra LX Light Blocking
Additive expands design freedom by allowing
designers to use a single PET layer bottle to create
the same visible light blocking as paperboard and
multilayer HDPE and PET packaging.
https://www.avient.com/sites/default/files/2021-09/avnt-seaport-conference-presentation.pdf
There are significant revenue opportunities generated from the combined color and additive technology strengths of the two legacy companies.
In addition, the cross-
selling opportunities that leverage Avient’s Engineered Materials and Distribution segments will identify and deliver additional growth.
Whether
an additional line at an existing
manufacturing plant, or a new
facility in a growing region, we
ramp-up quickly and cost-efficiently.
29
Capex / Revenue
2021E (%)
AVIENT IS ASSET LIGHT
Avient Specialty
Other
2 2 2 2 3 3 3 4 3
4 4 5 5 5 5 5 6
7
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