https://www.avient.com/investor-center/news/avient-completes-acquisition-dsm-protective-materials-dyneema
NYSE: AVNT), a leading provider of specialized and sustainable material solutions, has completed its purchase of the protective materials business of DSM (including the Dyneema® brand), which will now be called Avient Protective Materials and reported within the company's Specialty Engineered Materials segment.
Investor Relations Contact: Giuseppe (Joe) Di Salvo, Vice President, Treasurer and Investor Relations, Avient Corporation, +1 440-930-1921, giuseppe.disalvo@avient.com, or Media Contact: Kyle G.
Investor Contacts
https://www.avient.com/sites/default/files/2023-08/Avient General Purchase Conditions.pdf
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Personal information
means any identifying or potentially identifiable
information including but not limited to names,
contact details, IP addresses and any information
associated with those identifiers.
All required Insurance shall be
carried with responsible insurance companies of
recognized standing which are authorized to do
business in the state in which the Services are
rendered and are rated B+ VII or better by A.M.
https://www.avient.com/sites/default/files/resources/PolyOne%2520Investor%2520Presentation%2520Longbow%2520Basic%2520Materials%2520Conference%2520-%2520March%25202016.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
Our ability to realize anticipated savings and operational benefits from the realignment of assets, including the closure of manufacturing facilities;
The timing of closings and shifts of production to new facilities related to asset realignments and any unforeseen loss of customers and/or disruptions of
service or quality caused by such closings and/or production shifts;
Separation and severance amounts that differ from original estimates;
Amounts for non-cash charges related to asset write-offs and accelerated depreciation realignments of property, plant and equipment, that differ from
original estimates;
Our ability to identify and evaluate acquisition targets and consummate acquisitions;
The ability to successfully integrate acquired companies into our operations, retain the management teams of acquired companies, retain relationships
with customers of acquired companies, and achieve the expected results of such acquisitions, including whether such businesses will be accretive to our
earnings;
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 financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate
liquidity) to maintain their credit availability;
The speed and extent of an economic recovery, including the recovery of the housing market;
Our ability to achieve new business gains;
The effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks;
Changes in polymer consumption growth rates and laws and regulations regarding the disposal of plastic in jurisdictions where we conduct business;
Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online;
Fluctuations in raw material prices, quality and supply and in energy prices and supply; 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;
An inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital
reductions, cost reductions and employee productivity goals;
An inability to raise or sustain prices for products or services;
An inability to maintain appropriate relations with unions and employees;
Our ability to continue to pay cash dividends;
The amount and timing of repurchases of our common shares, if any; and
Other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and
changes in the rate of inflation.
The above list of factors is not exhaustive.
We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
PolyOne’s chief operating decision maker uses these financial measures to monitor
and evaluate the ongoing performance of the Company and each business segment
and to allocate resources.
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 – 2015 2016 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 $1.96
• 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
• 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
25 Consecutive Quarters of EPS Growth
Note: 2009 has not been restated for subsequent changes in accounting principles or discontinued operations
-$0.10
$0.00
$0.10
$0.30
$0.50
$0.60
2009 2010 2011 2012 2013 2014 2015
Adjusted Earnings Per Share
-2%
0%
10%
2009 2010 2011 2012 2013 2014 2015
Adjusted Consolidated Operating Margin
2.8%
5.2% 5.6%
6.7%
8.3%
6.9%
9.5%
PolyOne Corporation Page 6
2015 Revenues: $3.4 Billion
End Markets
2015 Revenues: $3.4 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 2015
Adjusted EPS
66%
Building &
10%Electrical &
Textiles
Distribution
29%
PP&S
Specialty
51%
$1.96
PolyOne Corporation Page 7
Old
PolyOne
*Operating Income excludes corporate charges and special items
2%
43%
65%
0%
20%
40%
60%
80%
100%
2005 2010 2015 2020
%
o
f O
pe
ra
tin
g
In
co
m
e*
JV's Performance Products & Solutions Distribution Specialty
80%+
Specialty OI $5M $87M $229M
Mix Shift Highlights Specialty Transformation
Transformation
2020
Platinum
Vision
Platinum
Vision
PolyOne Corporation Page 8
Color and Engineered Materials at the
Heart of Specialty Transformation
OPERATING MARGIN
1.7%
4.6% 5.1% 5.5%
7.2%
8.1%
9.7%
12.2%
14.7%
16.7%
20%+
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020
Platinum
Vision
COLOR, ADDITIVES
AND INKS
1.1% 1.3%
3.4%
5.1%
9.6%
8.0%
8.6%
9.3%
12.1%
14.7%
20%+
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020
Platinum
Vision
SPECIALTY
ENGINEERED MATERIALS
PolyOne Corporation Page 9
2006 2015 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income %
Specialty:
Color, Additives & Inks 1.7% 16.7% 20%+
Specialty Engineered Materials 1.1% 14.7% 20%+
Designed Structures & Solutions 1.4% (2012) 3.0% 12 – 14%
Performance Products &
Solutions 5.5% 8.3% 10 – 12%
Distribution 2.6% 6.6% 6.5 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 65% 80%+
3) ROIC* 5.0% 11.8% 15%
4) Adjusted EPS Growth N/A
25 Consecutive
Quarters of YOY
EPS Growth
Double Digit
Expansion
Proof of Performance & 2020 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
Therma-Tech™ & Sheet
GEON™ Vinyl
Polymer Colorants Therma-Tech™
TPE’s & Film
TPE + OnForce™
Gravi-Tech™
Page 10
Film
Target End Markets… Healthcare
PolyOne Corporation Page 11
TPE + OnForce
OnForce
TPE Vibration Dampening
(SEM/GLS)
TPE & Film
(SEM + DSS)
Polymer Colorants
(CAI)
Thermatech
Thermoplastic Elastomers
TPE + OnForce
OnForce
Thermoplastic Elastomers
Polymer Colorants
(CAI)
Sheet
(DSS)
Source: Outdoor Industry Association
Target End Markets… Outdoor High Performance
PolyOne Corporation Page 12
Sound & Vibration
Management
Fuel Handling
Systems
Interior & Exterior Trim
Structural Braces
& Brackets
Interior Structural
Components
Lighting
Air management
Electronics & Cameras
Fluid Handling
Target End Markets… Automotive
Underhood
Components
Roof Systems
PolyOne Corporation Page 13
Target End Markets… Packaging
PreservaPak™
OnColor™
Smart Batch™
VersaFlex™
TPE Cap Liner
ColorMatrix™
Amosorb™
Oxygen Scavenger
ColorMatrix™
Ultimate™ UV
Light Barrier
OnCap™
Laser Marking
Additives
PolyOne Corporation Page 14
Innovation Drives Earnings Growth
*Specialty Platform revenue from products introduced in last five years
$20
$53
2006 2015
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
28%
2006 2015
Specialty Platform
Gross Margin
12%
43%
2006 2015
Target ≥ 35%
Innovation Pipeline Potential
PolyOne Corporation Page 15
2,883
2,414
2006 2015
Volume
(lbs in millions)
-16%
$103
$192
2006 2015
Commercial, R&D
and Marketing
Spending ($M)
+86%
$303
$721
2006 2015
Adjusted
Gross Margin ($M)
+138%
Investing to Drive Growth
Ours Is Not a Cost Cutting Story
PolyOne Corporation Page 16
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 17
Customer First Through World-Class Service
Strengthening relationships through:
Providing LSS services to small/medium sized customers
Providing training in Customer Centric Selling Skills with customers
World’s Best Business
Process Excellence
Program in 2012*
World’s Best Start-up
program for Lean Six Sigma
Deployment in 2009*
81%
93%
2006 2015
16.2%
9.7%
2006 2015
On-Time Delivery
Working Capital % of Sales
52% of associates trained in LSS
Five consecutive years – CFO Magazine Best Working
Capital Management in the chemical industry
Commitment to Operational Excellence
PolyOne Corporation Page 18
60%
97%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 Q4 2015
Pension Funding**
As of December 31, 2015
Debt Maturities & Pension Funding
Net Debt / Adjusted EBITDA*= 2.1x
** includes US-qualified pension plans only *TTM 12/31/2015
$550
$600
$200
$300
$400
$500
$600
$700
$800
2022 2023
Debt Maturities
As of December 31, 2015
($ millions)
Coupon Rate: 3.750% 5.250%
PolyOne Corporation Page 19
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
1.0 million shares in
Q4 2015
Repurchased 15.8
million shares since
early 2013
4.2 million shares are
available for
repurchase under the
current authorization
$0.24
PolyOne Corporation Page 20
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/resources/HIGH_PERFORMANCE_CLEAR_THERMOPLASTICS_ELASTOMER.pdf
The main requirements are listed in the
following:
Transparency similar to silicone
Low hardness and low modulus
Good tensile and tear
Boiling water and dish washer
Abrasion and bite resistance
FDA direct fatty food contact approval
The properties are of silicone rubber
and SBC compounds are compared in the
following in Table I.
https://www.avient.com/sites/default/files/2023-10/LubriOne Product Selection Guide.pdf
Steel - Static ASTM D1894 – 0.237 0.183 – – – – – – – – – – – –
CoF (20min 0.2 m/s) g/min ASTM G77 – – – – – – – – – – – 0.79 0.79 – –
Wear Rate (20h, 1m/s) g/min ASTM G77 – – – – – – – – – – – 1.02E-05 1.89E-05 – –
Wear Rate (PV=2500)
(in3-min/
ft-lb-hr)
*10-10
ASTM D3702 – 125 175 – – – – – – – – – – – –
Flammability
Flame Rating UL 94 – – – – – – – HB HB V2 @ 3mm – – – – –
LubriOne™ Internally Lubricated Formulations - PTFE-Free
NOTES *ASTM D3702 (PV=2500, against 1018-steel)
1UHMWPE - ultra high molecular weight polyethylene
2MoS2 - molybdenum disulphide
To learn more about LubriOne™ internally lubricated solutions,
contact Avient at +1.844.4AVIENT (1.844.428.4368)
www.avient.com
EXPLORE WEAR RESISTANCE
LubriOne internally lubricated thermoplastic polymers have been specifically
designed to improve tribological performance in components, offering
low coefficient of friction and improved wear–resistance properties.
https://www.avient.com/sites/default/files/2021-09/supplier-code-of-conduct-fr.pdf
Pour toute question concernant cette politique, veuillez contacter
sourcing@avient.com.
https://www.avient.com/sites/default/files/2023-10/Cesa Flame Retardant Additives PTFE-free and Non-halogen for Polycarbonate Product Bulletin_A4.pdf
There are growing concerns
over the health hazard of PFAS, and a strong
push from regulatory bodies and companies to
progressively ban them.
https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202012%2520-%2520Financial%2520Review.pdf
Page 93
• Versus 2010, revenue growth of 9% drives 23% increase
in adjusted operating income
• Adjusted EPS expands 29% to all-time high of $1.02
Net Sales Adjusted Operating
$1.02
Adjusted EPS
$2,622 $2,643
$2,739
$2,061
$2,622
$2,864
Net Sales
$88 $87
$72
$59
$147
$181
Adjusted Operating
Income
$0.12
$0.27
$0.21
$0.13
$0.79
$1.02
($ millions) ($ millions)
Page 94
• Each platform contributed to our year over year
operating income growth
• Record OI achieved in Specialty and POD
• Ten quarters of double-digit adjusted EPS expansion
POD PP&SSpecialty Platform
ROS%* 0.6% 1.5% 3.2% 4.3% 5.3% 8.4% 8.0% 2.9% 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% 6.7% 5.5% 6.1% 3.1% 5.0% 7.0% 7.2%
$20 $19
$22
$28
$25
$42
$56
I
POD
$76
$64 $66
$31 $33
$54
$62
In
PP&S
$5
$13
$31
$46 $46
$87 $89
I
Specialty Platform
*ROS% is defined as adjusted operating income % of revenue
Page 95
• Continued portfolio repositioning
� Sale of SunBelt equity investment
� Acquisition of specialty companies ColorMatrix and Uniplen
• World-class working capital of 9.6% maintained while
improving on-time delivery to 94%improving on-time delivery to 94%
81%
87%
88%
95%
93% 92%
94%
2005 2006 2007 2008 2009 2010 2011
14.3%
16.2%
14.4%
18.9%
11.7%
9.6% 9.6%
2005 2006 2007 2008 2009 2010 2011
On-Time Delivery Working Capital % of Sales
Page 96
First Quarter 2012 Highlights
• Revenues increased 9%
over Q1 2011 to a new
quarterly record
• Adjusted EPS increased 12%
$0.26
$0.29
Adjusted EPS
• Adjusted EPS increased 12%
over prior year
• All platforms delivered
double-digit operating
income growth
$25.2
$14.7
$29.1
$17.8
$16.7
Specialty PP&S POD
Adjusted Operating Income
$14.3
Page 97
• Total Debt at 3/31/12
Less: Cash
Net Debt
• Available Liquidity
$706
186
$520
$360
$250
$350
$400
$450 Debt Maturities
As of March 31, 2012
Debt Maturities & Liquidity Summary – 3/31/12
• Available Liquidity
Cash
ABL Availability
Total Liquidity
• Net Debt / EBITDA* = 1.9x
$186
156
$342
*Adjusted EBITDA TTM Pro forma for ColorMatrix
$50
$0
$50
$100
$150
$200
$250
2015 2017 2020
Page 98
• Repurchased 6
million shares in
2011
Share Share
RepurchaseRepurchase
• Introduced a
quarterly dividend
in Q1 2011 and
increased in Q1
DividendsDividends
• Expanding our
sales, marketing,
and technical
capabilities is top
Organic Organic
GrowthGrowth
• Targets that expand our:
• Specialty offering
• End market presence
AcquisitionsAcquisitions
Use of Cash
Current Cash Balance = $186M
Net Debt / EBITDA* = 1.9X
• 7.9 million shares
remain available
for repurchase
under the current
authorization
increased in Q1
2012
• Objective of
maintaining and
growing
capabilities is top
priority
• Investing in
operational and
LSS initiatives
• CAPEX
• End market presence
• Geographic footprint
• Synergy opportunities
• Adjacent material solutions
*Adjusted EBITDA TTM Pro forma for ColorMatrix
Page 99
Page 100
https://www.avient.com/sites/default/files/2023-10/ISO13485 -2016 - 2021.2.20~2024.2.19 -EN.pdf
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https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Investor%2520Day%25205-18-15.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
Our ability to realize anticipated savings and operational benefits from the realignment of assets, including the planned closure of certain manufacturing
facilities;
The timing of closings and shifts of production to new facilities related to asset realignments and any unforeseen loss of customers and/or disruptions of
service or quality caused by such closings and/or production shifts;
Separation and severance amounts that differ from original estimates and amounts for non-cash charges related to asset write-offs and accelerated
depreciation realignments of property, plant and equipment, that differ from original estimates;
Our ability to identify and evaluate acquisition targets and consummate acquisitions;
The ability to successfully integrate acquired companies into our operations, retain the management teams of acquired companies and retain relationships
with customers of acquired companies including, without limitation, Spartech Corporation and Accella Performance Materials;
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 financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate
liquidity) to maintain their credit availability;
The speed and extent of an economic recovery, including the recovery of the housing market;
Our ability to achieve new business gains; the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks;
Changes in polymer consumption growth rates and laws and regulations regarding the disposal of plastic materials in jurisdictions where we conduct
business;
Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online in the industries in which we participate;
Fluctuations in raw material prices, quality and supply and in energy prices and supply;
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;
An inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital
reductions, cost reductions and employee productivity goals;
An inability to raise or sustain prices for products or services;
An inability to maintain appropriate relations with unions and employees;
Our ability to continue to pay regular quarterly cash dividends and the amounts and timing of any future dividends;
The amount and timing of repurchases of our common shares, if any;
Other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and
changes in the rate of inflation
The above list of factors is not exhaustive.
We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
PolyOne’s chief operating decision maker uses these financial measures to monitor
and evaluate the ongoing performance of the Company and each business segment
and to allocate resources.
S&P 500
-100%
200%
300%
400%
500%
600%
POL S&P 500
PolyOne Corporation Page 85
Formula for Success
Innovation
Market
Beating
Performance
Excellence in Execution
PolyOne Corporation Page 86
Track Record of Successful Acquisitions
$12
$50
2007 2014
$22
$39
2012 2014
$24
$69
2012 2014
GLS ColorMatrix Spartech
OI in $ millions
PolyOne Corporation Page 87
Driving Toward Premier Profitability
EBIT Margins for top tier
companies
Victrex 41%
18% Albemarle
Eastman 17%
Hexcel 17%
FMC 16%
Ecolab 14%
12% Specialty EBIT Margin – 2014
IFF 19%
Celanese 13%
PolyOne Corporation Page 88
2006 2014 2020
“Where we were” “Where we are” Platinum Vision
Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 14.7% 20%+
Global Specialty Engineered Materials 1.1% 12.1% 20%+
Designed Structures & Solutions 1.4%(2012) 7.3% 12 – 14%
Performance Products & Solutions 5.5% 7.7% 10 – 12%
Distribution 2.6% 6.1% 6.5 – 7.5%
Specialty Platform % of
Operating Income 6.0% 65% 80%+
ROIC 5.0% 11.3% 15%
Adjusted EPS Growth N/A 37% Double Digit
Expansion
2020 Platinum Vision
PolyOne Corporation Page 89
Platinum Vision: Pathway to Accelerated Growth
Organic
Sales Growth
Margin
Expansion
Share
Repurchases
Acquisitions
PolyOne Corporation Page 90
2006 2010 2014 2020
Driving Toward a Premium Specialty Multiple
6x
4x
Commodity POL
8x
Hybrid
10x
14x+
Mid-Tier
Specialty
Premium
Specialty
M
ul
tip
le
POL
POL
POL
PolyOne Corporation Page 91
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?