https://www.avient.com/news/archives?page=22
New Technology from Avient Helps Trace Origin of Fibers in Polyester and Polyamide Textiles
https://www.avient.com/sites/default/files/2024-12/AVNT Investor Day 2024 Presentation.pdf
All Rights Reserved 2024 14 Strategic approach to drive sustainable growth GDP + GROWING AT 10% PLU S GROWING AT 1 Core grows above macro driven by share wins and faster business development in prioritized portfolios (growth vectors) CATALYZE THE CORE 2 Portfolios in high growth markets grow faster than core – building sizeable businesses of scale rapidly BUILD NEW PLATFORMS OF SCALE ► Prioritizing ► differently ► Creating “space” ► focused front-end and back-end structures Avient sales growth 15Copyright © . All Rights Reserved 2024 42 Composite materials Engineered fibers Tapes, fabrics Laminates, panels Pultruded components Shapes Long-fiber thermoplastics Fiber optic cables Electrical infrastructure Ballistic protection Outdoor high performance Trucks, rail, RV Composite lumber 43Copyright © . All Rights Reserved 2024 61 History of balanced capital deployment $0 .1 6 $0 .2 0 $0 .2 6 $0 .3 4 $ 0. 42 $0 .5 0 $ 0. 58 $0 .7 2 $0 .7 9 $0 .8 2 $0 .8 8 $0 .9 6 $1 .0 0 $1 .0 3 $1 .0 8 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Dividend $ per shareAdj.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Morgan%2520Stanley%2520Global%2520Chemicals%2520and%2520Agriculture%2520Conference%2520-%252011%253A15%253A2016.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 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? PolyOne Investor �Presentation�3Q 2016 Forward-Looking Statements Use of Non-GAAP Measures About PolyOne What We Do At a Glance Slide Number 7 28 Consecutive Quarters of EPS Growth Proof of Performance & 2020 Goals Ours is Not a Cost Cutting Story Innovation Drives Earnings Growth Strategic Growth Opportunities Primary Industries Served Slide Number 14 Slide Number 15 Slide Number 16 Slide Number 17 Free Cash Flow and Strong Balance Sheet �Fund Investment / Shareholder Return Returning Cash to Shareholders Why Invest In PolyOne?
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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 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? Investor Presentation - November 2016 IR Presentation - Q3 2016 - RW Baird.pdf PolyOne Investor �Presentation�3Q 2016 Forward-Looking Statements Use of Non-GAAP Measures About PolyOne What We Do At a Glance Slide Number 7 28 Consecutive Quarters of EPS Growth Proof of Performance & 2020 Goals Ours is Not a Cost Cutting Story Innovation Drives Earnings Growth Strategic Growth Opportunities Primary Industries Served Slide Number 14 Slide Number 15 Slide Number 16 Slide Number 17 Free Cash Flow and Strong Balance Sheet �Fund Investment / Shareholder Return Returning Cash to Shareholders Why Invest In PolyOne?
https://www.avient.com/investor-center/news/avient-announces-record-second-quarter-2021-results-increases-full-year-guidance
Sales increased 42% to $1.235 billion and adjusted EPS increased 107% to $0.87 driven by very strong demand conditions in nearly all end markets The company cited robust demand across all end markets, particularly in consumer applications (up 67%) as revenue increased 42% to View original content to download multimedia:https://www.prnewswire.com/news-releases/avient-announces-record-second-quarter-2021-results-increases-full-year-guidance-301345050.html
https://www.avient.com/sites/default/files/2021-06/avient-ir-presentation-june-2021-w-non-gaap-recs_0.pdf
These investments also consider our global footprint, and we are positioned very well and strategically from a regional perspective. 12 Growth Drivers 2020 Revenue ($ Millions) Long-Term Growth Rate Sustainable Solutions $ 560 8–12% Healthcare 555 8–10% Composites / 5G 212 10% Growth in Emerging Regions 672 5% Other (GDP growth) 1,784 2–3% Pro Forma Avient $ 3,783 6.5% Q 1 2 0 2 1 P E R F O R M A N C E U P D AT E $86 $123 2020PF 2021 $0.53 $0.89 2020PF 2021 Q1 2021 – ORGANIC PERFORMANCE ( T O TA L C O M PA N Y ) 14 Sales Adjusted Operating Income $991 $1,162 2020PF 2021 + 17% Adjusted EPS + 43% + 68% (in millions) (in millions) (1) (1) (1) (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition Q1 2021 SEGMENT PERFORMANCE 15 CAI $536 $609 Sales ($ in millions) SEM Distribution $64 $89 Operating Income (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition +14% +39% $290 $363 Sales $19 $24 Operating Income +25% +26% (1) $185 $217 Sales $22 $34 Operating Income +17% +55% SPECIALTY EBITDA MARGIN EXPANSION 16 CAI (1) 2018-2020 financial information is pro forma to include a full year of Clariant Masterbatch business acquisition 15.3% 15.2% 16.2% 19.1% 2018 2019 2020 Q1 2021 14.8% 15.2% 17.6% 19.4% 2018 2019 2020 Q1 2021 (1) SEM • Continued portfolio transformation to high-growth end markets and sustainable solutions • Clariant Masterbatch synergy realization • Investments in composites and outdoor high performance applications drive growth and mix improvements CAI EBITDA MARGIN EXPANSION 17 Legacy CAI 18.9% 18.9% 21.0% 2019 2020 Q1 2021 Legacy Clariant MB 11.9% 13.8% 17.4% 2019 2020 Q1 2021 • Early synergy capture translating to the bottom line • Positive mix with growth in healthcare, consumer and packaging end-markets • World-class vitality index of 36% represents sales from products introduced in the last five years. This innovation drives performance and is reflective of consistent, strategic investments in our portfolio…and people. 2020 Pro forma $991 $86 Sustainable Solutions 15 11% 6 Healthcare 28 22% 6 Composites 6 10% 3 Growth in Emerging Regions 44 30% 10 Other 53 10% 7 Sub-total $1,137 15% $118 FX Impact 25 - 2 Synergies - - 11 Incentives, Travel, Other Employee Costs - - (8) 2021 Actual $1,162 17% $123 Q1 2021 ORGANIC SALES AND OPERATING INCOME ( T O TA L C O M PA N Y ) 18 (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition Sales Growth Rate Adjusted Operating Income$ millions (1) 19 Electrical & Electronics Building & Construction Wire & Cable Transportation Industrial Healthcare Packaging Consumer Q1 2020PF Q1 2021 (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition (2) Financial information is presented on a constant currency basis (1,2) (42% of total revenue) (58% of total revenue) Q1 END MARKET SALES PERFORMANCE +17% +14% +8% +10% +8% +22% +5% +24% Q 2 A N D F U L L Y E A R 2 0 2 1 O U T L O O K A S O F A P R I L 3 0 , 2 0 2 1 W E B C A S T $69 $112 2020PF 2021E $0.42 $0.80 2020PF 2021E ORGANIC GROWTH PROJECTIONS – Q2 ( T O TA L C O M PA N Y ) 21 Sales Adjusted Operating Income $870 $1,100 2020PF 2021E + 26% Adjusted EPS + 62% + 90% (in millions) (in millions) (1) (1) (1) (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition FULL YEAR GUIDANCE INCREASED 22 Sales Adj. We will deliver for our stakeholders through multiple value creation levers—many of which are unique to Avient: o Demand for sustainable solutions, healthcare, and composites, together with Clariant Masterbatch revenue synergies, that will drive 2021 revenue growth of 14% and long-term growth in excess of GDP o Clariant Masterbatch cost synergy capture will result in significant near-term benefit In addition, we remain committed to increasing annual dividends in line with earnings growth and opportunistically buying back shares, all while remaining modestly levered.
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 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 $0.20 $0.30 $0.40 $0.50 $0.60 2009 2010 2011 2012 2013 2014 2015 Adjusted Earnings Per Share -2% 0% 2% 4% 6% 8% 10% 12% 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 United States 66% Europe 13% Canada 7% Asia 7% Latin America 7% Appliances 4% Building & Construction 12% Consumer 10%Electrical & Electronics 5% Healthcare 11% Industrial 14% Packaging 13% Textiles 2% Transportation 20% Wire & Cable 9% Distribution 29% PP&S 20% 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 (SEM) OnForce (SEM) Glasforms (SEM) TPE Vibration Dampening (SEM/GLS) TPE & Film (SEM + DSS) Glasforms (SEM) Polymer Colorants (CAI) Thermatech (SEM) Thermoplastic Elastomers (SEM) TPE + OnForce (SEM) OnForce (SEM) Thermoplastic Elastomers (SEM) Glasforms (SEM) 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 31 de diciembre de 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 $800 2022 2023 Debt Maturities As of 31 de diciembre de 2015 ($ 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? Addressable market exceeds $40 billion 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 PolyOne Corporation Page 21 Appendix PolyOne Corporation Page 22 Recent Acquisitions Kraton TPE Assets Magenta Master Fibers February 2016 – Acquired Kraton’s thermoplastic elastomer (TPE) assets Serve personal care, medical, packaging (protective film) and electronics applications Purchase price of $72 million represents a multiple of 9x EBITDA Adds $35 million in annual revenue and $0.03 accretive to 2016 adjusted EPS Expands GLS presence in consumer, healthcare, transportation, and packaging end markets December 2015 – Acquired Magenta Master Fibers, an innovative developer of specialty color concentrates for the global fiber industry Purchase price of $22 million represents a multiple of 6.8x EBITDA Adds $16 million in annual revenue and $0.01 accretive to 2016 adjusted EPS Broadens portfolio of colorant and additives technologies for fiber applications and extends existing reach into strategic end markets such as transportation and consumer goods Medical Baby Care Electronics Food Packaging Automotive Textiles Home Textiles Clothing Outdoor PolyOne Corporation Page 23 $0.82 $1.00 $1.31 $1.80 $1.96 $0.00 $0.75 $1.50 $2.25 2011 2012 2013 2014 2015 Adjusted EPS 2015 Full Year Financial Highlights Color Additives & Inks operating margin reached record level of 16.7% Specialty Engineered Materials operating margin grew 260 basis points year-over-year to 14.7% Adjusted EPS has grown on average 24% per year since 2011 $50 $75 $104 $125 $135 $0 $40 $80 $120 $160 2011 2012 2013 2014 2015 CAI Operating Profit $46 $47 $57 $72 $80 $20 $40 $60 $80 $100 2011 2012 2013 2014 2015 SEM Operating Profit Note: $ in millions, except per share data PolyOne Corporation Page 24 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 16.7% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 Operating Income % of Sales At a Glance Color, Additives and Inks 2015 Revenues: $0.8 Billion Solutions Expanding Profits 2015 Revenue by Industry Segment 14.7% Platinum Vision United States 48% Europe 33% Canada 2% Asia 12% Latin America 5% Appliances 2% Building & Construction 11% Consumer 8% Electrical & Electronics 1% Healthcare 6% Industrial 13% Packaging 31% Textiles 8% Transportation 9% Wire & Cable 11% PolyOne Corporation Page 25 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 14.7% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 Operating Income % of Sales At a Glance Specialty Engineered Materials 2015 Revenues: $0.5 Billion Solutions 2015 Revenue by Industry Segment Expanding Profits Platinum Vision 12.1% United States 49% Europe 29% Canada 2% Asia 20% Appliances 3% Building & Construction 3% Consumer 20% Electrical & Electronics 16% Healthcare 11% Industrial 8% Packaging 5% Transportation 19% Wire & Cable 15% PolyOne Corporation Page 26 1.4% 5.6% 7.3% 3.0% 12-14% 2012 2013 2014 2015 2020 Operating Income % of Sales At a Glance Designed Structures and Solutions Solutions 2015 Revenues: $0.5 Billion Expanding Profits 2015 Revenue by Industry Segment Platinum Vision Appliances, 3% Building & Construction 9% Consumer 5% Healthcare 7% Industrial 24% Packaging 19% Transportation 33% United States 97% Canada 3% PolyOne Corporation Page 27 Appliances 7% Building & Construction 31% Consumer 5% Electrical & Electronics 3% Healthcare 1% Industrial 13% Packaging 5% Transportation 19% Wire & Cable 16% 5.5% 6.9% 3.8% 3.6% 5.5% 4.3% 6.3% 7.2% 8.3% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 Operating Income % of Sales At a Glance Performance Products and Solutions Solutions Expanding Profits 2015 Revenues: $0.7 Billion 10-12% Platinum Vision 2015 Revenue by Industry Segment 7.7% United States 79% Canada 14% Asia 2% Latin America 5% PolyOne Corporation Page 28 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% 6.4% 5.9% 6.6% 6.5-7.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 Operating Income % of Sales 15% 53% 2006 Q4 2015 At a Glance Distribution Key Suppliers 2015 Revenues: $1.0 Billion ROIC Expanding Profits 6.1% Platinum Vision Appliances 6% Building & Construction 4%Consumer 13% Electrical & Electronics 6% Healthcare 23% Industrial 16% Packaging 4% Transportation 24% Wire & Cable 4% http://www.avient.com/Pages/VariationRoot.aspx PolyOne Corporation Page 29 2 lbs Plastic = 3 lbs aluminum or 8 lbs steel or 27 lbs glass 33% less material by weight than aluminum 75% less material by weight than steel 93% less material by weight than glass Requires 91% less energy to recycle a pound of plastic versus a pound of paper Source: SPI: Sustainability and the Plastics Industry Plastics: Key to Future Sustainable Development PolyOne Corporation Page 30 Application Examples PolyOne Corporation Page 31 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 Page 32 $1.5 billion attractive, growing market Additives improve performance and reduce cost through light-weighting, reduced waste, faster cycle times, and extended shelf life of finished product Aligned with megatrend of protecting the environment: Sustainability benefits include lower package weight and improved recyclability of package at end of use Market Opportunity Leading Global Supplier of Additives In Growing PET Market Shelf-life extension Greater product consistency Recyclability and reduced carbon footprint Color and Special Effects Weight reduction Enhanced product aesthetics High heat resistance PET Bottling Technology 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2009 2014 2019 Asia Pacific North America Latin America Western Europe Eastern Europe Middle East and Africa Global PET Packaging Growth 2009-2019 Source: Euromonitor retail off-trade consumption (PET bottles & jars, home care, personal care, food & non-alcoholic beverages) B ill io n un its 5% CAGR PolyOne Corporation Page 33 • Includes formulation and consultative services to assist manufacturers and brand owners in positively identifying their finished goods • Protects brand equity & consumer welfare • Reduces exposure to unwarranted recall expenses • Secures supply chain integrity – support for safe expansion into new geographies Authentication Technology PolyOne Corporation Page 34 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 Page 35 • Color harmonization across 15 unique color-and-polymer combinations • Eliminated need for multiple pre- colored materials • Reduced Land Rover’s working capital Range Rover Evoque Interior PolyOne Corporation Page 36 • Reduced health and environmental impact • System cost reduction • Radiation-shielding performance • Parts consolidation • Design freedom CT Scanner PolyOne Corporation Page 37 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 PolyOne Corporation Page 38 Aerospace Applications • Leading provider of specialty materials for the aerospace industry • Typical applications Mil-spec aircraft windows, canopies, windscreens, instrument panels, wingtip lenses Interior – gallery furnishings, tray tables, arm rests, trim strips, joint/edge coverings • Benefits: High impact strength Resistant to UV rays Flame and smoke compliance Easy to clean with aggressive cleaners; anti-microbial grades available Range of sizes, thicknesses, colors, etc. 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.
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Page 3 Strategy and Execution Drive Results 90% $22 $24 PolyOne Stock Price 50% 70% $18 $20 $22 S&P 500 (relative performance) 30% $12 $14 $16 S&P 500 (relative performance) ‐10% 10% $6 $8 $10 50% ‐30% $0 $2 $4 $ | ‐50%$0 2006 2007 2008 2009 2010 2011 2012 2013 Page 4 Four Pillar Strategy The World’s Premier Provider of SpecializedThe World s Premier Provider of Specialized Polymer Materials, Services & Solutions Page 5 Spartech – Compelling Strategic Rationale • Spartech expands PolyOne’s specialty portfolio with adjacent technologies in attractive end markets Bolt on acquisition with opportunity for global expansion as only Bolt‐on acquisition with opportunity for global expansion, as only 6% of Spartech’s revenues are outside of North America • PolyOne has a proven management team with a track record of transformational success • Preliminary synergy estimated at $65 million run rate by end of 3year 3 Significant opportunity to expand profitability by leveraging PolyOne’s four pillar strategy • Substantial potential share price appreciation for all shareholders f f ll / $ Accretive to EPS in first full year post‐acquisition / $0.50 once synergies realized Page 6 Mix Shift Highlights Specialty Transformation Old PolyOne Transformation 100% 2015 Target 80% In co m e* 65 – 75%40% 60% f O pe ra ti ng 34% 43% 45% 65 75% 20% % o f 2%0% 2005 2008 2010 2012 2015 Specialty OI $5M $46M $87M $114M Target *Operating Income excludes corporate charges and special items JV's PP&S Distribution Specialty Page 7 Proof of Performance 2007 2012 2015 “Where we were” “Where we are” “Where we Where we were Where we are expect to be" 1) Operating Income % Specialty 3.2% 9.1% 12 – 16% PP&S 6.1% 9.0% 9 – 12% Distribution 3.0% 6.4% 6 – 7.5% 2) Specialty Platform sss% of Operating Income 20% 45% 65 – 75% 3) ROIC* ( ft t ) 7% 11% 15%3) ROIC* (after‐tax) 7% 11% 15% 4) Adjusted EPS Growth** N/A 4 yr CAGR = 55% Double Digit Expansion *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period **4 yr EPS CAGR calculated using 2012 adjusted EPS vs 2008 adjusted EPS Page 8 Proof of Performance Spartech Opportunity Intermediate PolyOne Spartech Opportunity 2006 2012 Today Goal “Where we were” “Where we are” “Where Spartech is”* “Where we can go”were are Spartech is can go Specialty Operating Margin 1.5% 9.1% 2.2% 8.0% – 10.0% Margin Page 9 *Pro Forma results include Spartech corporate allocations for FY12 ended November 3, 2012 At a Glance PolyOne Europe 14% Canada 8% Asia 5% Latin America 3% Distribution 2012 Revenues: $4.2 Billion* 2012 Revenues: $4.2 Billion* United States 70% 14% 5% PP&S 20%Specialty 57% 23% 70% Appliance 5% Building & HealthCare Transportation 16% Textiles 2% 1.02 1.20 $1.20 $1.40 ha re End Markets* EPS Growth g Construction 14% Wire & Cable 8% Consumer 8% Packaging 17% Industrial 11% Misc. 6% 9% 0.27 0 21 0.79 $0.40 $0.60 $0.80 $1.00 A dj us te d Ea rn in gs P er S Electrical & Electronics 4% 0.12 0.21 0.13 $0.00 $0.20 2006 2007 2008 2009 2010 2011 2012 Page 10 * Pro Forma includes FY2012 results for Spartech (11/03/12 YE) and Glasforms At a Glance Specialty U it d 2012 Revenues: $2.4 Billion* Solutions United States 59% Europe 23% Asia Canada 4% Asia 9% Latin America 5% Appliance 4% Building & C t ti HealthCare 5% Transportation 16% Textiles 2% % o f S al es 12-16% End Markets* Expanding Profits Construction 11% Wire & Cable 7% Electrical & Electronics Packaging 23% Industrial 7% Misc. 15% 1.5% 3.2% 4.3% 5.3% 8.4% 9.1% O pe ra ti ng In co m e % 8.0% Electronics 4% Consumer 6% Page 11 2006 2007 2008 2009 2010 2011 2012 2015 O Target* Pro Forma includes FY2012 results for Spartech (11/03/12 YE) and Glasforms At a Glance Designed Structures and Solutions United States 2012 Revenues: $0.85 Billion* Solutions 84% Europe 2% Canada 7% Latin America 7% Appliance 4% Building & Construction 11% Wire & Cable Sign & Advertising 3% Recreation & Leisure 2% Pool & Spa 1% Distribution & Thermoform 8% Textiles 2% Operating Income % of Sales 2012 Revenue by Industry Segment* Expanding Profits** Wire & Cable 7% Electrical & Electronics 4% Consumer 6% Packaging 23%Industrial 7% Transportation 16% 3% 2.2% 8 ‐ 10% 7% Misc. 1% HealthCare 5% 2012 2015 Target Page 12 *Pro Forma includes FY2012 results for Spartech (11/03/12 YE) **Pro Forma results include Spartech corporate allocations for FY12 Positioned for Earnings Growth 2015 Target Rev: $5B Adj. EPS: $1.20 Proforma Debt Maturities & Liquidity Summary – 12/31/12 (Reflecting Financing & Spartech Acquisition) • Total Debt at 12/31/12 h $1,010 $297 $360 $300 $400 Debt Maturities As of December 31, 2012 ($ millions) Less: Cash Net Debt 213 $797 $50 $297 $100 $200 • Available Liquidity Cash $213 $800 Debt Maturities As of December 31, 2012 P f f 2/13 Fi i $50 $0 2015 2017 2020 Interest Rates: 7.500% 5.000% 7.375% Cash ABL Availability Total Liquidity $213 271 $484 $600 $400 $600 Proforma for 2/13 Financing ($ millions) Total Liquidity • Net Debt / EBITDA = 2.0x* $484 $50 $360 $0 $200 • Net Debt / EBITDA = 2.35x** $50$0 2015 2020 2023 Page 14 Interest Rates: 7.500% 7.375% 5.250% *Assumes $65 million of synergies related to Spartech acquistion **Assumes no synergies related to Spartech acquistion Use of Cash Share DividendsOrganic G Acquisitions • Repurchased 1 2 Repurchase • Introduced a Dividends • Expanding our Growth T t th t d Acquisitions • Repurchased 1.2 million shares in 2012 • 20.0 million shares are il bl f • Introduced a quarterly dividend in Q1 2011 and increased in Q1 2012 (25%) and Q1 2013 (20%) • Expanding our sales, marketing, and technical capabilities is top priority • Investing in • Targets that expand our: • Specialty offering • End market presence • Geographic footprint available for repurchase under the current authorization Q1 2013 (20%) • Objective of maintaining and growing Investing in operational and LSS initiatives (including synergy capture) • CAPEX • Synergy opportunities • Adjacent material solutions Proforma Cash Balance = $213M N t D bt / EBITDA* 2 0X CAPEX Net Debt / EBITDA* = 2.0X *Adjusted EBITDA assumes synergies related to the Spartech acquisition are realized at close; preliminary synergies estimated at $65M and are expected to be achieved over a 3-year period Page 15 Why Invest In PolyOne? 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.
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