https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Goldman%2520Sachs%2520Conference%2520-%2520November%25202015.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
• Substantial EPS growth
from $0.13 to all-time
high of $1.80
• Shift to faster growing,
high margin, less
cyclical end markets
• Key acquisitions propel
current and future
growth, as well as
margin expansion
• Specialty mix expands
to 65% of Operating
Income – strongest mix
of earnings in history
• Accelerating growth
• Deliver consistent
double digit annual
EPS growth
• Maintain >35% vitality
index
• Pursue strategic
acquisitions that
expand specialty
offerings and
geographic breadth
• Invest and grow
current and next
generation talent
PolyOne Corporation Page 5
Building &
10%
Electrical &
11%
9%
Distribution
28%
PP&S
Specialty
52%
69%
13%
7% Asia
2014 Revenues: $3.8 Billion
End Markets
2014 Revenues: $3.8 Billion
PolyOne
At A Glance
$0.12
$0.27 $0.21 $0.13
$0.68
$0.82
$1.00
$1.31
$1.80
2006 2007 2008 2009 2010 2011 2012 2013 2014
Adjusted EPS
PolyOne Corporation Page 6
Old
PolyOne
*Operating Income excludes corporate charges and special items
2%
34% 43%
62%
65% 66%
0%
20%
40%
60%
80%
100%
2005 2008 2010 2013 2014 YTD 2015 2020
%
o
f O
pe
ra
tin
g
In
co
m
e*
JV's Performance Products & Solutions Distribution Specialty
80%+
Specialty OI $5M $46M $87M $195M $242M $183M
Mix Shift Highlights Specialty Transformation
Transformation
2020
Platinum
Vision
Platinum
Vision
PolyOne Corporation Page 7
2006 YTD 2015 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 17.2% 20%+
Global Specialty Engineered
Materials 1.1% 15.1% 20%+
Designed Structures & Solutions 1.4% (2012) 3.5% 12 – 14%
Performance Products &
Solutions 5.5% 8.1% 10 – 12%
Distribution 2.6% 6.6% 6.5 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 66% 80%+
3) ROIC 5.0% 11.9% 15%
4) Adjusted EPS Growth N/A
24 Consecutive
Quarters of YOY
EPS Growth
Double Digit
Expansion
Proof of Performance & 2020 Goals
PolyOne Corporation Page 8
Innovation Drives Earnings Growth
*Percentage of Specialty Platform revenue from products introduced in last five years
$20
$52
2006 TTM
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
28%
2006 TTM
Specialty Platform
Gross Margin %
12%
43%
2006 TTM
Specialty Vitality Index Target ≥ 35%
TTM 9/30/15 TTM 9/30/15 TTM 9/30/15
PolyOne Corporation Page 9
Innovation Pipeline Potential
Prototype Frame
Opportunity
Scale-up & Test
Market
Build
Business Case
Commercial
Launch
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
12
4
9
6
1
6
3 7 4
5
6
1
1
7
2
Breakthrough
Platform
Derivative
Number of Projects 12 10 23 19 10 74
Specialty
Addressable Market
($ millions)
- - $1,150 $1,000 $250 $2,400
PolyOne Corporation Page 10
Lightweighting with Advanced Composites
Increasing Healthcare Penetration
Innovation Initiatives
Expansion in Consumer Markets
New Market Development
$$$ $$ $
High Temperature Polymers
PolyOne Corporation Page 11
Design and Service as a Differentiator
Right Material &
Color
Desired
Product Design
Appropriate
Manufacturing Process
Delivering Concept to
Commercialization
Connecting
the Dots with
iQ Design Labs and
InVisiO Color Design
PolyOne Corporation Page 12
Customer First Through World-Class Service
Strengthening relationships through:
Providing LSS services to small/medium sized customers
• Supporting customers who lack their own formal process improvement initiatives
Providing training in Customer Centric Selling Skills with customers’
sales force
PolyOne Corporation Page 13
60%
97%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 Q3 2015
Pension Funding**
As of September 30, 2015
Debt Maturities & Pension Funding
Net Debt / Adjusted EBITDA** = 2.1x
$49
$121
$317
$600
$400
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2018 2020 2023
Debt Maturities
As of September 30, 2015
($ millions)
Coupon Rate: 7.500% Variable* 7.375% 5.250%
** includes US-qualified pension plans only *Weighted average rate on revolver was 2.49% as of 9/30/15 **TTM 9/30/2015
PolyOne Corporation Page 14
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
Expanding our sales,
marketing, and
technical capabilities
Investing in operational
and LSS initiatives
~75% of capital
expenditures fund
growth initiatives Organic
Growth
Acquisitions
Share
Repurchases
Dividends
$0.16
$0.20
$0.32
$0.40
$0.48
$0.10
$0.20
$0.30
$0.40
$0.50
2011 2012 2013 2014 2015 2016
Annual Dividend
Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material
solutions
Repurchased nearly
2.4 million shares in Q3
2015
Repurchased 14.8
million shares since
early 2013
5.2 million shares are
available for
repurchase under the
current authorization
$0.24
PolyOne Corporation Page 15
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/2024-12/Terms and Conditions of Sale for Indonesia %28English translation%29.pdf
Seller has based any recommendations to Buyer upon information
that Seller considers reliable, but Seller makes no warranty as to any
results Buyer might obtain in Buyer’s use(s) for the Product.
https://www.avient.com/sites/default/files/2024-10/Avient Announces Third Quarter 2024 Results.pdf
Factors
that could cause actual results to differ materially from those implied by these forward-looking
statements include, but are not limited to: disruptions, uncertainty or volatility in the credit
markets that could adversely impact the availability of credit already arranged and the
availability and cost of credit in the future; the effect on foreign operations of currency
fluctuations, tariffs and other political, economic and regulatory risks; disruptions or
inefficiencies in our supply chain, logistics, or operations; changes in laws and regulations in
jurisdictions where we conduct business, including with respect to plastics and climate change;
fluctuations in raw material prices, quality and supply, and in energy prices and supply; demand
for our products and services; production outages or material costs associated with scheduled
or unscheduled maintenance programs; unanticipated developments that could occur with
respect to contingencies such as litigation and environmental matters; our ability to pay regular
quarterly cash dividends and the amounts and timing of any future dividends; information
systems failures and cyberattacks; amounts for cash and non-cash charges related to
restructuring plans that may differ from original estimates, including because of timing changes
associated with the underlying actions; our ability to achieve strategic objectives and
successfully integrate acquisitions, including the implementation of a cloud-based enterprise
resource planning system, S/4HANA; and other factors affecting our business beyond our
control, including without limitation, changes in the general economy, changes in interest rates,
changes in the rate of inflation, geopolitical conflicts and any recessionary conditions.
https://www.avient.com/sites/default/files/2025-05/Avient Announces First Quarter 2025 Results_0.pdf
The company noted that first quarter 2025 GAAP EPS includes special items of $0.82
primarily related to an impairment associated with ceasing the development of S/4HANA, a
cloud-based ERP system (see attachment 3), and $0.16 of intangible amortization expense
(see attachment 1).
https://www.avient.com/sites/default/files/2024-12/Terms and Conditions of Sale for Spain.pdf
Seller has based any recommendations
to Buyer upon information that Seller considers reliable,
but Seller makes no warranty as to any results Buyer might
obtain in Buyer’s use(s) for the Product.
https://www.avient.com/sites/default/files/2024-09/Terms and Conditions of Sale for Poland.pdf
Sprzedający oparł wszelkie zalecenia
dla Kupującego na informacjach, które Sprzedający uważa
no warranty as to any results Buyer might obtain in
Buyer’s use(s) for the Product.
https://www.avient.com/sites/default/files/2024-03/Terms and Conditions of Sale for the United Arab Emirates.pdf
Seller has based any
recommendations to Buyer upon information that Seller considers reliable,
but Seller makes no warranty as to any results Buyer might obtain in
Buyer’s use(s) for the Product.
https://www.avient.com/sites/default/files/2024-09/Terms and Conditions of Sale for Germany.pdf
Seller has based any
recommendations to Buyer upon
information that Seller considers
reliable, but Seller makes no warranty as
to any results Buyer might obtain in
Buyer’s use(s) for the Product.
Seller has based any recommendations to Buyer upon information that Seller considers reliable, but Seller makes no warranty as to any results Buyer might obtain in Buyer’s use(s) for the Product.
https://www.avient.com/sites/default/files/2020-10/2020-gravi-tech-design-guide-.pdf
CHAPTER 3 | PART DESIGN GUIDELINES
Wall Thickness (mm)
C
o
o
li
n
g
T
im
(
S
c
)
40
35
30
25
20
15
10
0 1 2 3 4
ABS
PC
Nylon 6/6
Figure 2 - Designing for Wall Thickness Changes
Bad
Better
Recommended
Recommended
Poor
High Stress
Ideal
Figure 3 - Internal and External
Radius Guidelines
.5W Min
Inside Rad + W
Poor
High Volume
FIGURE 1 - Wall thickness vs. cooling
time of various plastics
FIGURE 2 - Designing for
wall thickness changes
FIGURE 3 - Internal and external
radius guidelines
Design Guide 9
RIB DESIGN GUIDELINES
The minimum distance ribs should be spaced is
three times the nominal wall thickness (3W).
https://www.avient.com/sites/default/files/2023-07/Terms and Conditions of Sale for China - August 2023.pdf
Seller has based any
recommendations to Buyer upon information that
Seller considers reliable, but Seller makes no warranty
as to any results Buyer might obtain in Buyer’s use(s)
for the Product.