https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520KeyBanc%2520Conference%2520-%2520September%252014%25202016.pdf
PolyOne Corporation Page 3
PolyOne Commodity to Specialty Transformation
2000-20052000-2005 2006 - 20092006 - 2009 2010 – 20152010 – 2015 2016 and beyond
2016 and
beyond
• Steve Newlin
appointed, Chairman,
• Steve Newlin
appointed, Chairman,
• Substantial EPS growth
from $0.13 to all-time
high of $1.96
• Substantial EPS growth
from $0.13 to all-time
high of $1.96
• Deliver consistent
double digit annual
EPS growth
• Deliver consistent
double digit annual
EPS growth
• Volume driven,
commodity producer
• Volume driven,
commodity producer
pp , ,
President and CEO
• New leadership team
appointed
pp , ,
President and CEO
• New leadership team
appointed
• Shift to faster growing,
high margin, less
cyclical end markets
• Key acquisitions propel
• Shift to faster growing,
high margin, less
cyclical end markets
• Key acquisitions propel
• Maintain >35% vitality
index
• Pursue strategic
i iti th t
• Maintain >35% vitality
index
• Pursue strategic
i iti th t
• Heavily tied to
cyclical end markets
• Heavily tied to
cyclical end markets • Implementation of four
pillar strategy
• Implementation of four
pillar strategy
y q p p
current and future
growth, as well as
margin expansion
• Specialty mix expands
y q p p
current and future
growth, as well as
margin expansion
• Specialty mix expands
acquisitions that
expand specialty
offerings and
geographic breadth
acquisitions that
expand specialty
offerings and
geographic breadth
• Performance largely
dependent on non-
controlling joint
ventures
• Performance largely
dependent on non-
controlling joint
ventures
• Focus on value based
selling, investment in
commercial resources
and innovation to drive
transformation
• Focus on value based
selling, investment in
commercial resources
and innovation to drive
transformation
to 65% of Operating
Income – strongest mix
of earnings in history
to 65% of Operating
Income – strongest mix
of earnings in history
• Invest and grow
current and next
generation talent
• Invest and grow
current and next
generation talent
PolyOne Corporation Page 4
Confirmation of Our Strategy
SpecializationSpecialization GlobalizationGlobalization
Associates
Operational
Excellence
Operational
Excellence
Commercial
Excellence
Commercial
Excellence
Th W ld’ P i P id f S i li d
PolyOne Corporation Page 5
The World’s Premier Provider of Specialized
Polymer Materials, Services and Solutions
27 Consecutive Quarters of EPS Growth
PolyOne Corporation Page 6
PolyOne
At A Glance
2015 Revenues: $3.4 Billion2015 Revenues: $3.4 Billion 2015 Revenues: $3.4 Billion2015 Revenues: $3.4 Billion
Europe
13%
Canada
7%
Asia
7%
Latin America
7% PP&S
20%
United States
Distribution
29%
CAI
23%
SEM
%DSS
End MarketsEnd Markets Adjusted EPSAdjusted EPS
66% 15%
DSS
13%
End MarketsEnd Markets
$1.31
$1.80
Adjusted EPSAdjusted EPS
Industrial
14%
Packaging
13%
Textiles
2%
Transportation
$1.96
$0 27 $0 21
$0.68
$0.82
$1.00
$1.31
Building &
C
Consumer
Healthcare
11%
20%
Wire & Cable
9%
PolyOne Corporation Page 7
$0.12
$0.27 $0.21
$0.13
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Appliances
4%
Construction
12%
10%Electrical &
Electronics
5%
Mix Shift Highlights Specialty Transformation
Old
PolyOne
100%
Transformation
2020
Platinum
Vision
80%
nc
om
e*
40%
60%
pe
ra
tin
g
In
80%+
43%
65%
20%
40%
%
o
f O
2%0%
2005 2010 2015 2020
Specialty OI $5M $87M $229M Platinum
Vision
PolyOne Corporation Page 8
*Operating Income excludes corporate charges and special items
JV's Performance Products & Solutions Distribution Specialty
Vision
Color and Engineered Materials at the
Heart of Specialty Transformation
OPERATING MARGIN
16.7%
17.5%
20%+
COLOR, ADDITIVES
AND INKS
15 8%
20%+
SPECIALTY
ENGINEERED MATERIALS
9.7%
12.2%
14.7%
9.6% 9.3%
12.1%
14.7%
15.8%
1 7%
4.6% 5.1%
5.5%
7.2%
8.1%
3.4%
5.1%
8.0%
8.6%
1.7%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q'16 2020
Platinum
Vision
1.1% 1.3%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q'16 2020
Platinum
Vision
YTD YTD
PolyOne Corporation Page 9
Proof of Performance & 2020 Goals
2006 2Q 2016 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income %1) Operating Income %
Specialty:
Color, Additives & Inks 1.7% 18.0% 20%+
S i lt E i d M t i l 1 1% 14 9% 20%+Specialty Engineered Materials 1.1% 14.9% 20%+
Designed Structures & Solutions N/A 1.7% (TTM) 8 – 10%
Performance Products &
Solutions 5.5% 12.3% 12 – 14%
Distribution 2.6% 6.5% 6.5 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 61% 80%+
3) ROIC* 5.0% 12.0% 15%
4) Adjusted EPS Growth N/A 11% Double Digit
PolyOne Corporation Page 10
) j %
Expansion
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
TPE’s & Film
Therma-Tech™ & Sheet
GEON™ Vinyl
TPE + OnForce™
Gravi-Tech™
Polymer ColorantsTherma-Tech™
Film
PolyOne Corporation Page 11Page 11
Target End Markets… Healthcare
OnForce
(SEM)
Glasforms
(SEM)
TPE + OnForce
(SEM)
TPE Vibration Dampening
(SEM/GLS)
Source: Outdoor Industry Association
TPE & Film
(SEM + DSS)
Thermoplastic Elastomers
(SEM)
TPE O F
Glasforms
(SEM)
Polymer Colorants
(CAI)
Thermatech
(SEM)
TPE + OnForce
(SEM)
OnForce
(SEM)
Thermoplastic Elastomers
(SEM)
Sheet
(DSS)
(SEM)
Glasforms
(SEM)
Polymer Colorants
(CAI)
PolyOne Corporation Page 12
Target End Markets… Outdoor High Performance
Sound & Vibration
Management
Roof Systems
Management
Interior & Exterior Trim
Interior Structural
Components
Fuel Handling
Underhood
Components
g
SystemsAir management
Electronics & Cameras
Structural Braces
& Brackets
Lighting
Fluid Handling
PolyOne Corporation Page 13
Target End Markets… Automotive
ColorMatrix™
Amosorb™
ColorMatrix™
Ultimate™ UV
Oxygen Scavenger
Ultimate UV
Light Barrier
PreservaPak™
OnColor™
Smart Batch™
OnCap™
Laser Marking
Additives
VersaFlex™
TPE Cap Liner
PolyOne Corporation Page 14
Target End Markets… Packaging
Innovation Drives Earnings Growth
$53
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
34%
CAI & SEM
Gross Margin
Target ≥ 35%
$20
$53
14%
12%
43%
*Specialty Platform revenue from products introduced in last five years
2006 2015 2006 20152006 2015
Innovation Pipeline PotentialInnovation Pipeline Potential
PolyOne Corporation Page 15
Ours is Not a Cost Cutting Story
VolumeCommercial, R&D Adjusted
2,883
Volume
(lbs in millions)
$192
Commercial, R&D
and Marketing
Spending ($M)
$721
Adjusted
Gross Profit ($M)
-16%
+86%
+138%
2,414$103
$303
2006 20152006 2015 2006 2015
PolyOne Corporation Page 16
Design and Service as a Differentiator
Right Material &
Color
Desired
Product Design
Appropriate
Manufacturing Process
Connecting
Delivering Concept to
Commercialization
Connecting
the Dots with
iQ Design Labs and
InVisiO Color Design
PolyOne Corporation Page 17
CommercializationInVisiO Color Design
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
On-Time Delivery Commitment to Operational Excellence
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
Working Capital % of Sales
16.2%
9.7%
52% of associates trained in LSS
PolyOne Corporation Page 18
2006 2015
Five consecutive years – CFO Magazine Best Working
Capital Management in the chemical industry
Debt Maturities & Pension Funding
102%
100%
Pension Funding**
As of June 30, 2016
$700
$800 Debt Maturities
As of June 30, 2016
($ millions)
80%
90%
100%
$547
$600
$600
$700
60%
60%
70%
$500
40%
50%
$300
$400
20%
30%
2008 2Q 2016
$200
2022 2023
Coupon Rate: LIBOR + 2 75% 5 250%
PolyOne Corporation Page 19
Net Debt / Adjusted EBITDA*= 2.3x
** includes US-qualified pension plans only*TTM 6/30/2016
Coupon Rate: LIBOR + 2.75% 5.250%
(3.50%)
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
Expanding our sales,
marketing, and
technical capabilities
Investing in operational
Repurchased 17.3
million shares since
early 2013
10 0 million shares are Investing in operational
and LSS initiatives
~75% of capital
expenditures fund
growth initiatives Organic
Gro th
Share
Rep rchases
10.0 million shares are
available for
repurchase under the
current authorization
Growth Repurchases
Acquisitions Dividends
Annual Dividend
Targets that expand
our:
• Specialty offerings
• End market
$0.20
$0.32
$0.40
$0.48
$0.30
$0.40
$0.50
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material $0.24
PolyOne Corporation Page 20
$0.16
$
$0.10
$0.20
2011 2012 2013 2014 2015 2016
solutions
Why Invest In PolyOne?
Addressable market exceeds $40 billion
St f d t t th t t t d ti Strong performance demonstrates that our strategy and execution
are working
Megatrends and emerging opportunities align with our strengths
Innovation and services provide differentiation, incremental pricing
power, and competitive advantage
Strong and proven management team driving growth and performance
The New PolyOne: A Specialty Growth Company
g p g g g p
PolyOne Corporation Page 21
The New PolyOne: A Specialty Growth Company
Appendix
PolyOne Corporation Page 22
2Q 2016 Financial Highlights
Performance Products & Solutions
operating margin grew 370 basis $18
$16
$21
$18
$22
PP&S Operating Profit
points year-over-year to 12.3%
$11
$15
$16
$10
$14
$18
2Q'12 2Q'13 2Q'14 2Q'15 2Q'16
SEM O ti P fit
SEM operating margin expanded 50
basis points to a record second
$15
$19
$20
$21
$18
$22
SEM Operating Profit
Adjusted EPS
quarter level of 14.9% $13
$15
$10
$14
2Q'12 2Q'13 2Q'14 2Q'15 2Q'16
$0.37
$0.51
$0.57
$0.63
$0.45
$0.70
Adjusted EPS
Second quarter adjusted EPS has
grown on average 20% per year
PolyOne Corporation Page 23
$0.30
$
$0.20
2Q'12 2Q'13 2Q'14 2Q'15 2Q'16
since 2012
Note: $ in millions, except per share data
At a Glance
Color, Additives and Inks
2015 Revenues: $0.8 Billion Solutions
United States
48%
Europe
33%
Asia
Canada
2%
12%
Latin America
5%
16.7%
18.0%
20%+Operating Income % of Sales
Expanding Profits2015 Revenue by Industry Segment
14.7%
Packaging
31%
Textiles
1.7%
4.6% 5.1%
5.5%
7.2% 8.1%
9.7%
12.2%
Building &
C i
Consumer
Healthcare
6%
Industrial
13%
8%
Transportation
9%
Wire & Cable
11%
PolyOne Corporation Page 24
1.7%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q'16 2020
Platinum
Vision
Appliances
2%
Construction
11%
8%
Electrical &
Electronics
1%
At a Glance
Specialty Engineered Materials
2015 Revenues: $0.5 Billion Solutions
United States
49%49%
Europe
29%
Asia
20%
Canada
2%
14.7% 14.9%
20%+Operating Income % of Sales
2015 Revenue by Industry Segment Expanding Profits
Appliances
3%
Packaging
5%
Transportation
19%
Wire & Cable
15%
1.1% 1.3%
3.4%
5.1%
9.6%
8.0% 8.6%
9.3%
12.1%Building &
Construction
3%
Consumer
20%
Electrical &
Electronics
Healthcare
11%
Industrial
8%
PolyOne Corporation Page 25
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q'16 2020
Platinum
Vision
Electronics
16%
At a Glance
Designed Structures and Solutions
Solutions2015 Revenues: $0.5 Billion
United States
97%
Canada
3%
8-10%
Operating Income % of Sales
Expanding Profits2015 Revenue by Industry Segment
Packaging
19%
1.4%
5.6%
7.3%
3.0%
1.0%Building &
Construction
Healthcare
7%
Industrial
24% Transportation
33%
PolyOne Corporation Page 26
2012 2013 2014 2015 2Q'16 2020
Platinum
Vision
Appliances,
3%
Construction
9%
Consumer
5%
7%
At a Glance
Performance Products and Solutions
Solutions2015 Revenues: $0.7 Billion
United States
79%
CanadaCanada
14%
Asia
2%
Latin America
5%
Packaging
5% Transportation
19% Wire & Cable
16%
12-14%
Operating Income % of Sales
Expanding Profits
12.3%
2015 Revenue by Industry Segment
Appliances
7%
Building &
Construction
31%
Electrical &
El t i
Healthcare
1%
Industrial
13%
%
5.5%
6.9%
3.8%
3.6%
5.5%
4.3%
6.3%
7.2%
8.3%7.7%
PolyOne Corporation Page 27
31%
Consumer
5%
Electronics
3%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q'16 2020
Platinum
Vision
At a Glance
Distribution
Key Suppliers2015 Revenues: $1.0 Billion
Packaging
4%
Transportation
24%
Wire & Cable
4%
Appliances
6%
Building &
Construction
4%Consumer
13%Healthcare
Industrial
16%
Electrical &
Electronics
6%
23%
6 6%
6.5-7.5%
6 5%
Operating Income % of Sales
53%
ROIC Expanding Profits
2.6%
3.0%
3.5%
4.0%
4.6%
5.6%
6.4% 5.9%
6.6% 6.5%
15%
6.1%
PolyOne Corporation Page 28
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q'16 2020
15%
2006 2Q 2016
Platinum
Vision
Plastics: Key to Future Sustainable Development
2 lbs Plastic
=
3 lbs aluminum
Requires 91% less energy to
recycle a pound of plastic versus
a pound of paper3 lbs aluminum
or
8 lbs steel
or
a pound of paper
or
27 lbs glass
33% less material by weight
than aluminum
75% less material by weight75% less material by weight
than steel
93% less material by weight
than glass
PolyOne Corporation Page 29
than glass
Source: SPI: Sustainability and the Plastics Industry
Application Examples
PolyOne Corporation Page 30
Luxury Packaging
with Gravitech Density Modified Polymers
• Impart weight, sound and
metallic finish to caps andmetallic finish to caps and
closures for cosmetics and
spirits applications
• Elevate quality and prestige
perceptions amongperceptions among
high‐end consumers
• Eliminate time and cost
associated with secondary
operations and assembly
PolyOne Corporation Page 31
p y
Medical Device Housings
with Chemically Resistant Engineered Polymers
• Durable, long‐lasting products
stand up to the most
aggressive disinfectants
• Minimize environmental stress
cracking and discolorationg
• One of the broadest medically y
approved polymer and
colorant portfolios
PolyOne Corporation Page 32
Printed Circuit Boards
with Thermally Conductive Polymers
• Replaces metal by etchingReplaces metal by etching
circuit designs into thermally
conductive plastic
• Maintains heat transfer and
cooling capabilities of metals
• Reduces both weight and cost
• Increases the lifetime and
reliability of electronic systems
PolyOne Corporation Page 33
Color & Design Services
• Greater control of color
development and supply chain
• Work across entire design
process from concept to
commercialization
• Inspire creativity in the use of
polymer materials, colors
and effects
• Innovative brand differentiation
• Faster development timelines
PolyOne Corporation Page 34
• Faster development timelines
Outdoor Applications
• Leading provider of high
performance specialty materials
for the recreational and sports & p
leisure industry
• Well positioned across all segments
to address market needs
Metal to Polymer Conversion
Lightweighting
Thermal Management
Impact Performance
PolyOne Corporation Page 35
Source: Outdoor Industry Association
Fiber Colorants
Solutions for clothing, apparel, footwear, automotive & sporting goods
• ColorMatrix Fiber Colorant Solutions
Proprietary advanced liquid color
formulations and equipment enable
greater efficiency and productivity
Eliminates aqueous dyeing and its
associated wastewater treatment
• Solid Color Concentrates
Extrusion spun fibers colored viaExtrusion‐spun fibers colored via
solid masterbatch
PolyOne Corporation Page 36
PET Bottling Technology
• $1.5 billion attractive, growing market
Shelf‐life
extension
Weight
reduction
• Improve performance and reduce
cost through light‐weighting,
d d t f t l ti Greater product
consistency
l b l
Enhanced
product
aesthetics
reduced waste, faster cycle times
and extended shelf life
Recyclability and
reduced carbon
footprint
aesthetics
High heat
• Aligned with megatrend of facing
climate and resource challenges:
Color and
Special Effects
High heat
resistance Sustainability benefits include
lower package weight and
improved recyclability of package
at end of use
PolyOne Corporation Page 37
at end of use
Metal Replacement Solutions
• Replaces metal in LED lighting
• Extends LED durability and life
span eliminating hot spots
• Greater design flexibility with
fewer parts
• Weight reduction
l f f d• Simplifies manufacturing and
lowers total production cost
PolyOne Corporation Page 38
High-Barrier Packaging Containers
• Capability to extrude up to 13 layers• Capability to extrude up to 13 layers
• Strong oxygen and moisture vapor
transmission protectiontransmission protection
• Can be made symmetrical or
asymmetrical to meet customizedasymmetrical to meet customized
needs of broad variety of applications
• Barrier protection and superiorBarrier protection and superior
sensory properties
PolyOne Corporation Page 39
1
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(Dollars in millions, except per share data)
Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with U.S.
Adjusted EPS is calculated as follows:
Adjusted EPS 2006Y* 2007Y* 2008Y* 2009Y* 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y
Net income (loss) attributable to PolyOne common
shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6
Joint venture equity earnings, after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) — — — —
Special items, after tax(1) (51.2) 10.7 457.2 (75.9) (72.5) (72.8) 36.2 32.6 90.5 28.9
Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5
Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8 96.5 93.5 88.7
Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96
Adjusted EPS Q1 2009* Q2 2009* Q3 2009* Q4 2009* Q1 2010 Q2 2010 Q3 2010 Q4 2010
Net income attributable to PolyOne common shareholders $ 3.3 $ 1.3 $ 51.3 $ 50.8 $ 20.1 $ 44.7 $ 0.1 $ 87.6
Joint venture equity earnings, after tax (8.2) (5.8) (3.0) (2.0) (0.5) (4.5) (6.2) (3.5)
Special items, after tax(1) (10.2) 9.2 (36.9) (38.0) (3.8) (22.1) 25.4 (72.0)
Adjusted net (loss) income $ (15.1) $ 4.7 $ 11.4 $ 10.8 $ 15.8 $ 18.1 $ 19.3 $ 12.1
Diluted shares 92.2 93.5 93.9 94.4 95.3 96.3 96.3 97.4
Adjusted EPS $ (0.16) $ 0.05 $ 0.12 $ 0.11 $ 0.17 $ 0.19 $ 0.20 $ 0.12
Adjusted EPS Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
Net income attributable to PolyOne common shareholders $ 106.0 $ 23.1 $ 16.0 $ 8.3 $ 15.3 $ 18.4 $ 19.4 $ 0.2
Joint venture equity earnings, after tax (3.7) - - - - - - -
Special items, after tax(1) (81.3) 1.3 2.8 4.4 6.2 8.9 5.4 15.7
Adjusted net income $ 21.0 $ 24.4 $ 18.8 $ 12.7 $ 21.5 $ 27.3 $ 24.8 $ 15.9
Diluted shares 96.4 95.5 94.0 91.9 90.7 90.7 90.2 90.5
Adjusted EPS $ 0.22 $ 0.26 $ 0.20 $ 0.14 $ 0.24 $ 0.30 $ 0.28 $ 0.18
2
Adjusted EPS Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
Net income (loss) attributable to PolyOne common
shareholders $ 11.2 $ 38.6 $ 23.2 $ 21.0 $ 29.4 $ 30.9 $ 32.3 $ (14.6)
Special items, after tax(1) 17.7 (2.0) 12.3 4.6 12.5 17.4 13.1 47.5
Adjusted net income $ 28.9 $ 36.6 $ 35.5 $ 25.6 $ 41.9 $ 48.3 $ 45.4 $ 32.9
Diluted shares 92.8 99.1 98.1 97.2 95.7 94.3 93.1 91.3
Adjusted EPS $ 0.31 $ 0.37 $ 0.36 $ 0.26 $ 0.44 $ 0.51 $ 0.49 $ 0.36
Adjusted EPS Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Net income attributable to PolyOne common shareholders $ 30.2 $ 66.8 $ 44.5 $ 3.1 $ 39.1 $ 50.0
Special items, after tax(1) 11.4 (15.9) 3.0 30.4 9.1 3.2
Adjusted net income $ 41.6 $ 50.9 $ 47.5 $ 33.5 $ 48.2 $ 53.2
Diluted shares 90.1 89.8 88.4 86.6 85.5 84.7
Adjusted EPS $ 0.46 $ 0.57 $ 0.54 $ 0.39 $ 0.56 $ 0.63
Adjusted operating margin is calculated as follows:
Adjusted operating margin Q1 2009* Q2 2009* Q3 2009* Q4 2009* YTD 2009* Q1 2010 Q2 2010 Q3 2010 Q4 2010 YTD 2010
Operating Income $ 9.9 $ 17.1 $ 57.9 $ 52.2 $ 137.1 $ 32.3 $ 58.6 $ 42.0 $ 26.3 $ 159.2
Special items (1) (1.3) 4.6 (27.5) (24.5) (48.7) - (14.5) 5.5 4.2 (4.8)
Joint venture equity earnings (12.8) (9.0) (4.8) (3.1) (29.7) (0.8) (7.1) (9.7) (5.5) (23.1)
Adjusted operating (loss) income $ (4.2) $ 12.7 $ 25.6 $ 24.6 $ 58.7 $ 31.5 $ 37.0 $ 37.8 $ 25.0 $ 131.3
Sales $ 463.4 $ 496.5 $ 548.3 $ 552.5 $ 2,060.7 $ 604.0 $ 666.2 $ 650.7 $ 585.3 $ 2,506.2
Operating Margin (0.9)% 2.6% 4.7% 4.5% 2.8% 5.2% 5.6% 5.8% 4.3% 5.2%
Adjusted operating margin Q1 2011 Q2 2011 Q3 2011 Q4 2011 YTD 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 YTD 2012
Operating income (loss) $ 173.4 $ 42.4 $ 33.4 $ (46.2) $ 203.0 $ 37.4 $ 43.3 $ 43.5 $ 13.3 $ 137.5
Special items (1) (127.2) 2.7 4.9 72.9 (46.7) 8.5 11.8 8.3 25.3 53.9
Joint venture equity earnings (5.7) - - - (5.7) - - - - -
Adjusted operating income $ 40.5 $ 45.1 $ 38.3 $ 26.7 $ 150.6 $ 45.9 $ 55.1 $ 51.8 $ 38.6 $ 191.4
Sales $ 682.8 $ 723.4 $ 694.0 $ 609.2 $ 2,709.4 $ 745.5 $ 756.6 $ 707.7 $ 651.0 $ 2,860.8
Operating Margin 5.9% 6.2% 5.5% 4.4% 5.6% 6.2% 7.3% 7.3% 5.9% 6.7%
3
Adjusted operating margin Q1 2013 Q2 2013 Q3 2013 Q4 2013 YTD 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 YTD 2014
Operating income (loss) $ 40.5 $ 80.7 $ 61.6 $ 48.7 $ 231.5 $ 56.4 $ 49.4 $ 63.6 $ (14.3) $ 155.1
Special items (1) 16.6 (5.2) 10.8 7.8 30.0 22.9 39.8 22.0 80.2 164.9
Adjusted operating income $ 57.1 $ 75.5 $ 72.4 $ 56.5 $ 261.5 $ 79.3 $ 89.2 $ 85.6 $ 65.9 $ 320.0
Sales $ 801.1 $ 1,037.6 $ 1,008.9 $ 923.6 $ 3,771.2 $ 1,002.3 $ 1,005.5 $ 958.4 $ 869.3 $ 3,835.5
Operating Margin 7.1% 7.3% 7.2% 6.1% 6.9% 7.9% 8.9% 8.9% 7.6% 8.3%
Adjusted operating margin Q1 2015 Q2 2015 Q3 2015 Q4 2015 YTD 2015 Q1 2016 Q2 2016
Operating income $ 70.1 $ 80.3 $ 69.2 $ 31.3 $ 250.9 $ 71.3 $ 81.5
Special items (1) 9.3 11.9 18.7 31.4 71.3 13.8 10.4
Adjusted operating income $ 79.4 $ 92.2 $ 87.9 $ 62.7 $ 322.2 $ 85.1 $ 91.9
Sales $ 873.1 $ 887.1 $ 841.6 $ 775.8 $ 3,377.6 $ 847.0 $ 861.5
Operating Margin 9.1% 10.4% 10.4% 8.1% 9.5% 10.0% 10.7%
Adjusted gross margin is calculated as follows:
(In millions) Twelve Months Ended December 31, 2015
Gross margin - GAAP $ 681.5
Special items in gross margin(1) 39.7
Gross margin before special items $ 721.2
Specialty platform percentage of operating income is calculated as follows:
Platform operating income mix percentage 2006Y* Q2 2016
Color, Additives and Inks $ 8.9 $ 38.2
Specialty Engineered Materials 3.9 21.4
Designed Structures and Solutions — 1.0
Specialty Platform $ 12.8 $ 60.6
Performance Products and Solutions 64.2 21.3
Distribution 19.2 17.8
Joint ventures 102.9 —
Corporate and eliminations 34.5 (18.2)
Operating income GAAP $ 233.6 $ 81.5
Less: Corporate and eliminations (34.5) 18.2
Operating income excluding Corporate $ 199.1 $ 99.7
Specialty platform percentage of operating income excluding corporate 6% 61%
4
Adjusted EBITDA and net debt to adjusted EBITDA is calculated as follows:
(In millions)
Six Months Ended
June 30, 2015
Twelve Months Ended
December 31, 2015
Six Months Ended
June 30, 2016
Trailing Twelve Months
Ended June 30, 2016
Income from continuing operations, before income taxes $ 116.7 $ 167.7 $ 123.6 $ 174.6
Interest expense, net 32.3 64.1 29.2 61.0
Depreciation and amortization 50.1 104.3 52.4 106.6
Special items, impact on income (loss) from continuing operations before
income taxes(1) 21.2 87.6 24.5 90.9
Accelerated depreciation included in special items (0.3) (6.2) (3.2) (9.1)
Adjusted EBITDA(2) $ 220.0 $ 417.5 $ 226.5 $ 424.0
Short-term and current portion of long-term debt $ 18.4
Long-term debt 1,126.2
Total Debt 1,144.6
Less: Cash and cash equivalents (161.4)
Net Debt $ 983.2
Net Debt / TTM Adjusted EBITDA 2.3
* Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principal, discontinued operations or the related resegmentation
https://www.avient.com/sites/default/files/resources/POL%2520KeyBanc%2520IR%2520Presentation%2520w%2520non-GAAP%252009%252010%25202013.pdf
Platform operating income mix percentage 2005Y* 2008Y* 2010Y* 2012Y* 2012PF** H1 2013***
Global Specialty Engineered Materials $ 0.4 $ 17.6 $ 49.7 $ 47.0 $ 47.7 $ 32.5
Global Color, Additives and Inks 4.3 28.1 37.7 66.8 81.6 54.7
Designed Structures & Solutions - - - - 20.9 10.5
Specialty Platform $ 4.7 $ 45.7 $ 87.4 $ 113.8 $ 150.2 $ 97.7
Performance Products and Solutions 75.7 31.3 54.0 74.9 37.4 27.5
Distribution 19.5 28.1 42.0 66.0 66.0 33.1
SunBelt Joint Venture 91.9 28.6 18.9 - - -
Corporate (51.5) (425.1) (27.7) (87.6) (87.9) (37.1)
Operating income (loss) GAAP $ 140.3 $ (291.4) $ 174.6 $ 167.1 $ 165.7 $ 121.2
Less: Corporate operating expense (income) 51.5 425.1 27.7 87.6 87.9 37.1
Operating income excluding Corporate $ 191.8 $ 133.7 $ 202.3 $ 254.7 $ 253.6 $ 158.3
Specialty platform operating mix percentage 2% 34% 43% 45% 60% 62%
* Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
** Pro Forma results include Spartech and Glasforms acquisitions, Specialty Coatings reclass and exclude the Resin business assets.
*** Restated results to exclude the Resin business and to remove Specialty Coatings from the Performance Products and Solutions segment into
Global Color, Additives and Inks segment.
Platform sales and operating income (OI) 2006Y* 2008Y* 2010Y* 2012Y* 2012PF**
Global Specialty Engineered Materials Sales $ 345.3 $ 514.0 $ 517.4 $ 543.6 $ 773.0
Global Color, Additives and Inks Sales 531.8 554.3 527.4 703.5 828.5
Designed Structures and Solutions - - - - 850.6
Specialty Platform Sales $ 877.1 $ 1,068.3 $ 1,044.8 $ 1,247.1 $ 2,452.1
Performance Products and Solutions Sales 1,166.2 1,001.4 776.3 837.0 696.1
PolyOne Distribution Sales 732.8 796.7 911.9 1,030.3 1,030.3
Corporate and Eliminations (153.7) (127.7) (111.1) (121.8) (121.6)
Total Sales $ 2,622.4 $ 2,738.7 $ 2,621.9 $ 2,992.6 $ 4,056.9
Global Specialty Engineered Materials OI $ 3.9 $ 17.6 $ 49.7 $ 47.0 $ 47.7
Global Color, Additives and Inks OI 8.9 28.1 37.7 66.8 81.6
Designed Structures & Solutions OI - - - - 20.9
Specialty Platform OI $ 12.8 $ 45.7 $ 87.4 $ 113.8 $ 150.2
Performance Products and Solutions OI 64.2 31.3 54.0 74.9 37.4
PolyOne Distribution OI 19.2 28.1 42.0 66.0 66.0
Sunbelt Joint Venture OI 102.9 28.6 18.9 - -
Corporate and eliminations (4.6) (28.9) (32.5) (33.7) (40.0)
Special items in OI 39.1 (396.2) 4.8 (53.9) (53.9)
Operating income (loss) GAAP $ 233.6 $ (291.4) $ 174.6 $ 167.1 $ 159.7
Sunbelt equity income (107.0) (32.5) (23.1) - -
Special items in OI (39.1) 396.2 (4.8) 53.9 53.9
Operating income adjusted $ 87.5 $ 72.3 $ 146.7 $ 221.0 $ 213.6
Global Specialty Engineered Materials - OI % of sales
1.1%
3.4%
9.6% 8.6% 6.1%
Global Color, Additives and Inks - OI % of sales 1.7% 5.1% 7.1% 9.5% 9.8%
Designed Structures & Solutions – OI % of sales - - - - 2.5%
Specialty platform OI - % of sales 1.5% 4.3% 8.4% 9.1% 6.1%
PP&S operating OI - % of sales 5.5% 3.1% 7.0% 9.0% 5.4%
Distribution OI - % of sales 2.6% 3.5% 4.6% 6.4% 6.4%
PolyOne OI adjusted - % of sales 3.3% 2.6% 5.6% 7.4% 5.3%
* Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
** Pro Forma results include Spartech and Glasforms acquisitions, Specialty Coatings reclass and exclude the Resin business assets.
*** Restated results to exclude the Resin business and to remove Specialty Coatings from the Performance Products and Solutions segment into
Global Color, Additives and Inks segment.
Average Debt Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Average
PolyOne Debt $ 705.8 $ 705.2 $ 706.9 $ 1,055.5 $ 1,031.2 $ 840.9
Average Equity Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Average
PolyOne shareholders’ equity $ 604.3 $ 629.3 $ 629.1 $ 871.8 $ 993.9 $ 745.7
Platform sales and operating income (OI) H1 2012*** H1 2013*** H1 2013****
Global Specialty Engineered Materials Sales $ 280.9 $ 352.0 $ 285.1
Global Color, Additives and Inks Sales 413.9 434.7 409.2
Designed Structures & Solutions Sales - 240.4 -
Specialty Platform Sales $ 694.8 $ 1,027.1 $694.3
Performance Products and Solutions Sales 336.0 336.7 317.5
PolyOne Distribution Sales 533.6 543.1 543.1
Corporate and Eliminations (62.3) (68.2) (68.2)
Total Sales $ 1,502.1 $ 1,838.7 $ 1,486.7
Global Specialty Engineered Materials OI $ 24.6 $ 32.5 $ 31.2
Global Color, Additives and Inks OI 44.0 54.7 52.0
Designed Structures & Solutions OI - 10.5 -
Specialty Platform OI $ 68.6 $ 97.7 $ 83.2
Performance Products and Solutions OI 19.3 27.5 25.7
PolyOne Distribution OI 33.4 33.1 33.1
Corporate and eliminations (20.3) (25.7) (20.3)
Special items in OI (20.3) (11.4) (20.3)
Operating income - GAAP $ 80.7 $ 121.2 $ 101.4
Special items in OI 20.3 11.4 20.3
Operating income adjusted $ 101.0 $ 132.6 $ 121.7
Global Specialty Engineered Materials - OI % of sales
8.8% 9.2% 10.9%
Global Color, Additives and Inks - OI % of sales 10.6% 12.6% 12.7%
Designed Structures & Solutions - OI % of sales - 4.4% -
Specialty platform - OI % of sales 9.9% 9.5% 12.0%
PP&S operating - OI % of sales 5.7% 8.2% 8.1%
Distribution OI - % of sales 6.3% 6.1% 6.1%
PolyOne OI adjusted - % of sales 6.7% 7.2% 8.2%
Reconciliation to Condensed Consolidated Balance Sheets H1 2013
Short-term debt and current portion of long-term debt $ 8.7
Long-term debt 1,022.5
Less cash and cash equivalents (392.4)
Specialty Platform Gross Margin Percentage 2006Y* Q2 2013****
Global Specialty Engineered Materials Sales $ 345.3 $ 143.5
Global Color, Additives and Inks Sales 531.8 207.5
Specialty Platform Sales $ 877.1 $ 351.0
Global Specialty Engineered Materials Gross Margin $ 41.6 $ 37.3
Global Color, Additives and Inks Gross Margin 83.6 71.8
Specialty Platform Gross Margin $ 125.2 $ 109.1
Specialty Platform Gross Margin Percentage 14.3% 31.1%
* Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
https://www.avient.com/sites/default/files/2021-05/avnt-tpe-beginner-guide-fin.pdf
Can you color TPEs?
Can you color TPEs?
Because their natural color is
usually cream, white, beige or translucent,
TPEs are very easy to color.
https://www.avient.com/sites/default/files/2020-10/light-diffusion-case-study.pdf
This optimized combination of additive and color
technology eliminated the “hot spots,” and achieved
the sought-after bright white light, and streamlined
the entire manufacturing process by enabling in-house
production.
The OEM was able to purchase
virgin resin and add only the necessary amounts of
color and diffusion additives required to achieve peak
performance.
Smartbatch solutions incorporate color, light diffusion
technology and flame retardant into a single
masterbatch.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Morgan%2520Stanley%2520Global%2520Chemicals%2520and%2520Agriculture%2520Conference%2520-%252011%253A15%253A2016.pdf
A reconciliation of each non-GAAP financial measure with the most directly
comparable GAAP financial measure is attached to this presentation which is posted
on our website at www.polyone.com.
4 POLYONE CORPORATION
About PolyOne
Reach
7,000 associates | 77 facilities | $3.4 B 2015 revenue
Global Presence
10,000 global customers | Americas, Europe, Africa, Asia |
Global sales, technical and manufacturing footprint
Solutions
35,000+ polymer solutions | 12 innovation centers |
Support for design through manufacturing
5 POLYONE CORPORATION
What We Do
Value
Formulation
Expertise Inputs
Base resins
Additives
Modifiers
Pigments
Expertise in
Polymer
Materials,
Services and
Solutions
OEMs
Brand Owners
Processers
Assemblers
Driving customer value with specialty products & services
Service
InVisiOSM Color
Services
IQ Design Labs
LSS Customer
First
POLYONE CORPORATION 6
CAI
23%
SEM
15%
DSS
13%
POD
29%
PPS
20%
2015 Revenue: $3.4 Billion
At a Glance
United
States
66%
Europe
13%
Canada
7%
Asia
7%
Latin
America
7%
$0.12
$0.27 $0.21
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
2015 Revenue: $3.4 Billion
2015 Operating Income: $322 Million
CAI
38%
SEM
23%
DSS
4%
POD
19%
PPS
16%
Adjusted Earnings Per Share
7 POLYONE CORPORATION
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
Transformation
2020
Platinum
Vision
Platinum
Vision
Mix Shift Highlights Specialty Transformation
POLYONE CORPORATION 8
-$0.10
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
2009 2010 2011 2012 2013 2014 2015 2016
Adjusted Earnings Per Share
$0.56
3Q
-2%
0%
2%
4%
6%
8%
10%
12%
2009 2010 2011 2012 2013 2014 2015 2016
Adjusted Consolidated Operating Margin
2.8%
5.2%
5.6%
6.7%
8.3%
6.9%
9.5% 9.9%
3Q
28 Consecutive Quarters of EPS Growth
9 POLYONE CORPORATION
2006 2016 YTD 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income % of Sales
Specialty:
Color, Additives & Inks 1.7% 17.0% 20%+
Specialty Engineered Materials 1.1% 15.2% 20%+
Designed Structures & Solutions N/A 0.6% (TTM) 8 – 10%
Performance Products &
Solutions 5.5% 11.6% 12 – 14%
Distribution 2.6% 6.6% 6.5 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 60% 80%+
3) ROIC* 5.0% 11.6% 15%
4) Adjusted EPS Growth N/A 11.5% 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 10
2,883
2,414
2006 2015
Volume
(lbs in millions)
-16%
$103
$192
2006 2015
Commercial, R&D
and Marketing
Spending ($M)
+86%
$88
$322
2006 2015
Adjusted
Operating Profit ($M)
+266%
Ours is Not a Cost Cutting Story
11 POLYONE CORPORATION
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%
34%
2006 2015
CAI & SEM
Gross Margin
12%
43%
2006 2015
Target ≥ 35%
Innovation Pipeline Potential
12 POLYONE CORPORATION
Globalization
Specialization
Commercial
Excellence
Operational
Excellence
Growth in
urbanization
Changing
demographics
Climate and
resource
challenges
Increase of
individual
power
Evolution and
expansion of
healthcare
Strategic Growth Opportunities
Four Pillar Strategy Global Megatrends
Attractive
Revenue &
Margin Growth
Opportunities
13 POLYONE CORPORATION
Primary Industries Served
2015 Revenue: $3.4 Billion
Electrical &
Electronic
5%
Building &
Construction
12%
Appliance
4%
Industrial
14%
Wire & Cable
9%
Healthcare
11%
Consumer
10%
Packaging
13%
Transportation
20%
Focus End Markets
14 POLYONE CORPORATION
Therma-Tech™ & Sheet
GEON™ Vinyl
Polymer Colorants
Therma-Tech™
TPE’s & Film
TPE + OnForce™
Gravi-Tech™
Page 14
Film
Target End Markets… Healthcare
15 POLYONE CORPORATION
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
16 POLYONE CORPORATION
PreservaPak™
OnColor™
Smart Batch™
VersaFlex™
TPE Cap Liner
ColorMatrix™
Amosorb™
Oxygen Scavenger
ColorMatrix™
Ultimate™ UV
Light Barrier
OnCap™
Laser Marking
Additives
Target End Markets… Packaging
17 POLYONE CORPORATION
Source: Outdoor Industry Association
TPE Vibration Dampening
(SEM/GLS)
TPE + OnForce
(SEM)
OnForce
(SEM)
Advanced Composites
(SEM)
TPE Vibration Dampening
(SEM/GLS)
Target End Markets… Outdoor High Performance
Thermoplastic Elastomers
(SEM)
Advanced Composites
(SEM)
Polymer Colorants
(CAI)
Sheet
(DSS)
TPE & Film
(SEM + DSS)
Advanced Composites
(SEM)
Polymer Colorants
(CAI)
Thermatech
(SEM)
Thermoplastic Elastomers
(SEM)
TPE + OnForce
(SEM)
OnForce
(SEM)
18 POLYONE CORPORATION
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 Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material
solutions
Repurchased 318,000
shares in Q3 2016
Repurchased 17.6
million shares since
early 2013
9.7 million shares are
available for
repurchase under the
current authorization
Increased annual
dividend by 12.5% to
$0.54 per share,
representing the sixth
consecutive year of
dividend growth
19 POLYONE CORPORATION
Returning Cash to Shareholders
$0.16
$0.20
$0.24
$0.32
$0.40
$0.48
$0.54
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
2011 2012 2013 2014 2015 2016 2017
Annual Dividend
Since 2011, we have returned nearly $800 million to shareholders
$130 million returned through dividends
$650 million returned through share repurchases
$650M
$0
$150
$300
$450
$600
$750
2011 2012 2013 2014 2015 Q3'16
Cumulative Share Repurchases
(in millions)
POLYONE CORPORATION 20
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.mullerquaker.com/products/greek100/greek100-peach-and-passion-fruit&ei=-acYVZq7EIqwyASDjYL4CA&bvm=bv.89381419,d.cWc&psig=AFQjCNGNCQY1_dCN2RPLzxtap_Pu0omTXQ&ust=1427765484498432
POLYONE CORPORATION 25
2015 Revenue: $0.7 Billion
At a Glance: Performance Products & Solutions
2015 Revenue by Industry Expanding Profits
5.5%
6.9%
3.8%
3.6%
5.5%
4.3%
6.3%
7.2% 7.7%
8.3%
12-14%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
YTD
2020
Operating Income % of Sales
Platinum
Vision
11.6%
B & C
31%
Transportation
19%
W & C
16%
Industrial
13% Appliances 7%
Consumer
5%
Packaging
5%
E & E
3%
Healthcare
1%
United
States
79%
Canada
14%
Latin
America
5%
Asia
2%
Key Applications
POLYONE CORPORATION 26
2015 Revenue: $1.0 Billion
At a Glance: Distribution
Key Suppliers
ROIC Expanding Profits
2.6%
3.0%
3.5%
4.0%
4.6%
5.6%
6.4%
5.9% 6.1%
6.6%
6.5-7.5%
6.6%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
YTD
2020
Operating Income % of Sales
Platinum
Vision
15%
53%
2006 3Q 2016
Transportation
24%
Healthcare
23%
Industrial
16%
Consumer
13%
E & E
6%
Appliances
6%
W & C
4%
Packaging
4%
B & C
4%
http://www.avient.com/Pages/VariationRoot.aspx
27 POLYONE CORPORATION
Application Examples
POLYONE CORPORATION 28
Luxury Packaging
with Gravitech Density Modified Polymers
Impart weight, sound and
metallic finish to caps and
closures for cosmetics and
spirits applications
Elevate quality and prestige
perceptions among high-end
consumers
Eliminate time and cost
associated with secondary
operations and assembly
POLYONE CORPORATION 29
Medical Device Housings
with Chemically Resistant Engineered Polymers
Durable, long-lasting
products stand up to the
most aggressive disinfectants
Minimize environmental
stress cracking and
discoloration
One of the broadest
medically approved polymer
and colorant portfolios
POLYONE CORPORATION 30
Printed Circuit Boards
with Thermally Conductive Polymers
Replaces metal by etching
circuit designs into thermally
conductive plastic
Maintains heat transfer and
cooling capabilities of metals
Reduces both weight and cost
Increases the lifetime and
reliability of electronic systems
POLYONE CORPORATION 31
Color & Design Services
Greater control of color development
and supply chain
Work across entire design process
from concept to commercialization
Inspire creativity in the use of
polymer materials, colors
and effects
Innovative brand differentiation
Faster development timelines
POLYONE CORPORATION 32
Outdoor Applications
Leading provider of high performance
specialty materials for the recreational
and sports & leisure industry
Well positioned across all segments to
address market needs
Metal to Polymer Conversion
Lightweighting
Thermal Management
Impact Performance
Source: Outdoor Industry Association
POLYONE CORPORATION 33
Fiber Colorants
Solutions for clothing, apparel, footwear, automotive & sporting goods
ColorMatrix Fiber Colorant Solutions
Proprietary advanced liquid color
formulations and equipment enable
greater efficiency and productivity
Eliminates aqueous dyeing and its
associated wastewater treatment
Solid Color Concentrates
Extrusion-spun fibers colored via
solid masterbatch
POLYONE CORPORATION 34
Improve performance and reduce
cost through light-weighting,
reduced waste, faster cycle times
and extended shelf life
Aligned with megatrend of facing
climate and resource challenges:
Sustainability benefits include
lower package weight and
improved recyclability of
package at end of use
Shelf-life
extension
Greater product
consistency
Recyclability and
reduced carbon
footprint
Color and Special
Effects
Weight reduction
Enhanced product
aesthetics
High heat
resistance
Preservative Technology
POLYONE CORPORATION 35
Metal Replacement Solutions
Replaces metal in LED lighting
Extends LED durability and life
span eliminating hot spots
Greater design flexibility with
fewer parts
Weight reduction
Simplifies manufacturing and
lowers total production cost
POLYONE CORPORATION 36
High-Barrier Packaging Containers
Capability to extrude up to 13
layers
Strong oxygen and moisture vapor
transmission protection
Can be made symmetrical or
asymmetrical to meet customized
needs of broad variety of
applications
Barrier protection and superior
sensory properties
1
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(Dollars in millions, except per share data)
Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with U.S.
Segment Highlights
At a Glance: Color, Additives & Inks
At a Glance: Specialty Engineered Materials
At a Glance: Designed Structures & Solutions
At a Glance: Performance Products & Solutions
At a Glance: Distribution
Application Examples
Luxury Packaging�with Gravitech Density Modified Polymers
Medical Device Housings�with Chemically Resistant Engineered Polymers
Printed Circuit Boards�with Thermally Conductive Polymers
Color & Design Services
Outdoor Applications
Fiber Colorants�Solutions for clothing, apparel, footwear, automotive & sporting goods
Slide Number 34
Metal Replacement Solutions
High-Barrier Packaging Containers
Investor Presentation - November 2016 r4 (2).pdf
Investor Presentation - November 2016
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520RW%2520Baird%2520Global%2520Industrial%2520Conference%2520-%252011%253A8%253A2016.pdf
A reconciliation of each non-GAAP financial measure with the most directly
comparable GAAP financial measure is attached to this presentation which is posted
on our website at www.polyone.com.
4 POLYONE CORPORATION
About PolyOne
Reach
7,000 associates | 77 facilities | $3.4 B 2015 revenue
Global Presence
10,000 global customers | Americas, Europe, Africa, Asia |
Global sales, technical and manufacturing footprint
Solutions
35,000+ polymer solutions | 12 innovation centers |
Support for design through manufacturing
5 POLYONE CORPORATION
What We Do
Value
Formulation
Expertise Inputs
Base resins
Additives
Modifiers
Pigments
Expertise in
Polymer
Materials,
Services and
Solutions
OEMs
Brand Owners
Processers
Assemblers
Driving customer value with specialty products & services
Service
InVisiOSM Color
Services
IQ Design Labs
LSS Customer
First
POLYONE CORPORATION 6
CAI
23%
SEM
15%
DSS
13%
POD
29%
PPS
20%
2015 Revenue: $3.4 Billion
At a Glance
United
States
66%
Europe
13%
Canada
7%
Asia
7%
Latin
America
7%
$0.12
$0.27 $0.21
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
2015 Revenue: $3.4 Billion
2015 Operating Income: $322 Million
CAI
38%
SEM
23%
DSS
4%
POD
19%
PPS
16%
Adjusted Earnings Per Share
7 POLYONE CORPORATION
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
Transformation
2020
Platinum
Vision
Platinum
Vision
Mix Shift Highlights Specialty Transformation
POLYONE CORPORATION 8
-$0.10
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
2009 2010 2011 2012 2013 2014 2015 2016
Adjusted Earnings Per Share
$0.56
3Q
-2%
0%
2%
4%
6%
8%
10%
12%
2009 2010 2011 2012 2013 2014 2015 2016
Adjusted Consolidated Operating Margin
2.8%
5.2%
5.6%
6.7%
8.3%
6.9%
9.5% 9.9%
3Q
28 Consecutive Quarters of EPS Growth
9 POLYONE CORPORATION
2006 2016 YTD 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income % of Sales
Specialty:
Color, Additives & Inks 1.7% 17.0% 20%+
Specialty Engineered Materials 1.1% 15.2% 20%+
Designed Structures & Solutions N/A 0.6% (TTM) 8 – 10%
Performance Products &
Solutions 5.5% 11.6% 12 – 14%
Distribution 2.6% 6.6% 6.5 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 60% 80%+
3) ROIC* 5.0% 11.6% 15%
4) Adjusted EPS Growth N/A 11.5% 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 10
2,883
2,414
2006 2015
Volume
(lbs in millions)
-16%
$103
$192
2006 2015
Commercial, R&D
and Marketing
Spending ($M)
+86%
$88
$322
2006 2015
Adjusted
Operating Profit ($M)
+266%
Ours is Not a Cost Cutting Story
11 POLYONE CORPORATION
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%
34%
2006 2015
CAI & SEM
Gross Margin
12%
43%
2006 2015
Target ≥ 35%
Innovation Pipeline Potential
12 POLYONE CORPORATION
Globalization
Specialization
Commercial
Excellence
Operational
Excellence
Growth in
urbanization
Changing
demographics
Climate and
resource
challenges
Increase of
individual
power
Evolution and
expansion of
healthcare
Strategic Growth Opportunities
Four Pillar Strategy Global Megatrends
Attractive
Revenue &
Margin Growth
Opportunities
13 POLYONE CORPORATION
Primary Industries Served
2015 Revenue: $3.4 Billion
Electrical &
Electronic
5%
Building &
Construction
12%
Appliance
4%
Industrial
14%
Wire & Cable
9%
Healthcare
11%
Consumer
10%
Packaging
13%
Transportation
20%
Focus End Markets
14 POLYONE CORPORATION
Therma-Tech™ & Sheet
GEON™ Vinyl
Polymer Colorants
Therma-Tech™
TPE’s & Film
TPE + OnForce™
Gravi-Tech™
Page 14
Film
Target End Markets… Healthcare
15 POLYONE CORPORATION
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
16 POLYONE CORPORATION
PreservaPak™
OnColor™
Smart Batch™
VersaFlex™
TPE Cap Liner
ColorMatrix™
Amosorb™
Oxygen Scavenger
ColorMatrix™
Ultimate™ UV
Light Barrier
OnCap™
Laser Marking
Additives
Target End Markets… Packaging
17 POLYONE CORPORATION
Source: Outdoor Industry Association
TPE Vibration Dampening
(SEM/GLS)
TPE + OnForce
(SEM)
OnForce
(SEM)
Advanced Composites
(SEM)
TPE Vibration Dampening
(SEM/GLS)
Target End Markets… Outdoor High Performance
Thermoplastic Elastomers
(SEM)
Advanced Composites
(SEM)
Polymer Colorants
(CAI)
Sheet
(DSS)
TPE & Film
(SEM + DSS)
Advanced Composites
(SEM)
Polymer Colorants
(CAI)
Thermatech
(SEM)
Thermoplastic Elastomers
(SEM)
TPE + OnForce
(SEM)
OnForce
(SEM)
18 POLYONE CORPORATION
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 Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material
solutions
Repurchased 318,000
shares in Q3 2016
Repurchased 17.6
million shares since
early 2013
9.7 million shares are
available for
repurchase under the
current authorization
Increased annual
dividend by 12.5% to
$0.54 per share,
representing the sixth
consecutive year of
dividend growth
19 POLYONE CORPORATION
Returning Cash to Shareholders
$0.16
$0.20
$0.24
$0.32
$0.40
$0.48
$0.54
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
2011 2012 2013 2014 2015 2016 2017
Annual Dividend
Since 2011, we have returned nearly $800 million to shareholders
$130 million returned through dividends
$650 million returned through share repurchases
$650M
$0
$150
$300
$450
$600
$750
2011 2012 2013 2014 2015 Q3'16
Cumulative Share Repurchases
(in millions)
POLYONE CORPORATION 20
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.mullerquaker.com/products/greek100/greek100-peach-and-passion-fruit&ei=-acYVZq7EIqwyASDjYL4CA&bvm=bv.89381419,d.cWc&psig=AFQjCNGNCQY1_dCN2RPLzxtap_Pu0omTXQ&ust=1427765484498432
POLYONE CORPORATION 25
2015 Revenue: $0.7 Billion
At a Glance: Performance Products & Solutions
2015 Revenue by Industry Expanding Profits
5.5%
6.9%
3.8%
3.6%
5.5%
4.3%
6.3%
7.2% 7.7%
8.3%
12-14%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
YTD
2020
Operating Income % of Sales
Platinum
Vision
11.6%
B & C
31%
Transportation
19%
W & C
16%
Industrial
13% Appliances 7%
Consumer
5%
Packaging
5%
E & E
3%
Healthcare
1%
United
States
79%
Canada
14%
Latin
America
5%
Asia
2%
Key Applications
POLYONE CORPORATION 26
2015 Revenue: $1.0 Billion
At a Glance: Distribution
Key Suppliers
ROIC Expanding Profits
2.6%
3.0%
3.5%
4.0%
4.6%
5.6%
6.4%
5.9% 6.1%
6.6%
6.5-7.5%
6.6%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
YTD
2020
Operating Income % of Sales
Platinum
Vision
15%
53%
2006 3Q 2016
Transportation
24%
Healthcare
23%
Industrial
16%
Consumer
13%
E & E
6%
Appliances
6%
W & C
4%
Packaging
4%
B & C
4%
http://www.avient.com/Pages/VariationRoot.aspx
27 POLYONE CORPORATION
Application Examples
POLYONE CORPORATION 28
Luxury Packaging
with Gravitech Density Modified Polymers
Impart weight, sound and
metallic finish to caps and
closures for cosmetics and
spirits applications
Elevate quality and prestige
perceptions among high-end
consumers
Eliminate time and cost
associated with secondary
operations and assembly
POLYONE CORPORATION 29
Medical Device Housings
with Chemically Resistant Engineered Polymers
Durable, long-lasting
products stand up to the
most aggressive disinfectants
Minimize environmental
stress cracking and
discoloration
One of the broadest
medically approved polymer
and colorant portfolios
POLYONE CORPORATION 30
Printed Circuit Boards
with Thermally Conductive Polymers
Replaces metal by etching
circuit designs into thermally
conductive plastic
Maintains heat transfer and
cooling capabilities of metals
Reduces both weight and cost
Increases the lifetime and
reliability of electronic systems
POLYONE CORPORATION 31
Color & Design Services
Greater control of color development
and supply chain
Work across entire design process
from concept to commercialization
Inspire creativity in the use of
polymer materials, colors
and effects
Innovative brand differentiation
Faster development timelines
POLYONE CORPORATION 32
Outdoor Applications
Leading provider of high performance
specialty materials for the recreational
and sports & leisure industry
Well positioned across all segments to
address market needs
Metal to Polymer Conversion
Lightweighting
Thermal Management
Impact Performance
Source: Outdoor Industry Association
POLYONE CORPORATION 33
Fiber Colorants
Solutions for clothing, apparel, footwear, automotive & sporting goods
ColorMatrix Fiber Colorant Solutions
Proprietary advanced liquid color
formulations and equipment enable
greater efficiency and productivity
Eliminates aqueous dyeing and its
associated wastewater treatment
Solid Color Concentrates
Extrusion-spun fibers colored via
solid masterbatch
POLYONE CORPORATION 34
Improve performance and reduce
cost through light-weighting,
reduced waste, faster cycle times
and extended shelf life
Aligned with megatrend of facing
climate and resource challenges:
Sustainability benefits include
lower package weight and
improved recyclability of
package at end of use
Shelf-life
extension
Greater product
consistency
Recyclability and
reduced carbon
footprint
Color and Special
Effects
Weight reduction
Enhanced product
aesthetics
High heat
resistance
Preservative Technology
POLYONE CORPORATION 35
Metal Replacement Solutions
Replaces metal in LED lighting
Extends LED durability and life
span eliminating hot spots
Greater design flexibility with
fewer parts
Weight reduction
Simplifies manufacturing and
lowers total production cost
POLYONE CORPORATION 36
High-Barrier Packaging Containers
Capability to extrude up to 13
layers
Strong oxygen and moisture vapor
transmission protection
Can be made symmetrical or
asymmetrical to meet customized
needs of broad variety of
applications
Barrier protection and superior
sensory properties
1
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(Dollars in millions, except per share data)
Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with U.S.
Segment Highlights
At a Glance: Color, Additives & Inks
At a Glance: Specialty Engineered Materials
At a Glance: Designed Structures & Solutions
At a Glance: Performance Products & Solutions
At a Glance: Distribution
Application Examples
Luxury Packaging�with Gravitech Density Modified Polymers
Medical Device Housings�with Chemically Resistant Engineered Polymers
Printed Circuit Boards�with Thermally Conductive Polymers
Color & Design Services
Outdoor Applications
Fiber Colorants�Solutions for clothing, apparel, footwear, automotive & sporting goods
Slide Number 34
Metal Replacement Solutions
High-Barrier Packaging Containers
https://www.avient.com/sites/default/files/2024-03/CCG Application Snapshot_Wire _ cable laser marking_Final.pdf
Wire & cable manufacturer
W I R E & C A B L E
M A N U FAC T U R E R
A E R O N A U T I C D A T A
T R A N S M I S S I O N C A B L E S
• Permanent contrast marking meeting aerospace industry standards
SAE AS4373F and EN-3475-706
• Benign marking that, compared to infrared (IR) laser marking, will
not damage the jacket surface
• Elevated temperature performance in corrosive environments,
maintaining dielectric properties under continuous service
• No vital optical fiber or data transmission cable interference
• Demonstrated fluorinated ethylene propylene (FEP)
application expertise incorporating laser marks
• Provided formulation expertise in PTFE alternatives
• Delivered a high-quality product with no clumping
during the extrusion process
• Offered a proven array of specific aeronautic colors
• Provided commercial, technical, and operational
support
KEY REQUIREMENTS
APPEARANCE + PERFORMANCE
WHY AVIENT?
AVIENT SOLUTION
Colorant Chromatics UV Laser Marking
Additives for FEP
LEARN MORE
© 2024, Avient Corporation.
All Rights Reserved
https://www.avient.com/products/polymer-additives/laser-marking-additives/colorant-chromatics-uv-laser-marking-technology
Wire & cable manufacturer
https://www.avient.com/sites/default/files/2024-07/woonkeatmoh_2024.pdf
WOON KEAT MOH
Senior Vice President and President, Color, Additives & Inks
Woon Keat Moh (“Moh”) is senior vice president and president, Color, Additives & Inks, for
Avient Corporation, a premier provider of specialized and sustainable material solutions and
services.
This has included Sales Director for Avient’s Color and Additives
segment in Asia and General Manager of Engineered Materials Asia.
https://www.avient.com/sites/default/files/2020-07/case-study-one-pager-eccoh-6154-optical-fiber-cable.pdf
GLOBAL CABLE
MANUFACTURER
M I C R O M O D U L E S F O R O P T I C A L
F I B E R C A B L E S
Meet specific standards for stranded, loose tube, optical fiber cable
performance and production, including:
• High speed processing at a low wall thickness
• Good colorability
• Resistance to chemicals and filling compounds
• UV ageing performance
• Low shrinkage
• Enabled faster processing speeds and
manufacturing consistency with a reliable
material, eliminating waste
• Enabled easier installation with excellent
colorability at low wall thickness
• Provided technical support to transfer the
product to multiple plants
ECCOH LSFOH 6154 UV
KEY REQUIREMENTS
WHY AVIENT?
AVIENT SOLUTION
PROCESSABILITY + COLORABILITY
LEARN MORE
© 2020, All Right Reserved
Avient Corporation, 33587 Walker Road, Avon Lake, Ohio USA 44012
https://www.avient.com/products/engineered-polymer-formulations/eco-conscious-formulations/eccoh-low-smoke-and-fume-non-halogen-formulations
Global cable manufacturer
https://www.avient.com/sites/default/files/2024-03/Versalloy TPE Waterproof Seal on Vehicle Accessory.pdf
AUTOMOTIVE OEM
W A T E R P R O O F S E A L O N
A C C E S S O R Y P A R T
• FDA food contact compliance
• Color match to OEM-specified gray
• 70 Shore A durometer for overmolding to PP
• Scratch and mar resistance
• Provided material compliant with FDA 21
CFR 177.1210
• Supplied both the base resin and at-press
colorant to meet OEM specifications
• Offered TPV alloy grade that enabled easy
processing and durable surface aesthetics
• Specified material in North America with
design engineers and supplied out of a
facility in China to meet production needs
Versalloy™ XL Thermoplastic Elastomer
KEY REQUIREMENTS
WHY AVIENT?
AVIENT SOLUTION
FDA COMPLIANT + COLOR MATCH
LEARN MORE
Copyright © 2024, Avient Corporation.