https://www.avient.com/sites/default/files/2024-08/Avient Q2 2024 Earnings Call Presentation.pdf
FX +4.6%
FX -1.5%
Total Avient +3.1%
Note: Regional Sales Percentages exclude impact of foreign exchange
Q2 2024 SEGMENT PERFORMANCE
(COLOR, ADDITIVES & INKS)
$525
$542
$94
$108
19.9%
(in millions) (in millions)
7
17.9%
+200 bps
* Adjusted EBITDA Margin %
• Organic sales growth in all
regions led by Americas
• Raw material deflation combined
with cost reduction actions drove
EBITDA margin expansion
+ 3%
(+5% excluding FX)
+ 15%
(+17% excluding FX)
Q2 2024 SEGMENT PERFORMANCE
(SPECIALTY ENGINEERED MATERIALS)
$301
$308
$60
$64
20.6%
(in millions) (in millions)
8
19.8%
+80 bps
* Adjusted EBITDA Margin %
• Sales growth in consumer,
healthcare and building &
construction end markets offset
by weaker demand in
telecommunications
• EBITDA margin expansion
driven by positive end market
mix as well as raw material
deflation
+ 2%
(+4% excluding FX)
+ 7%
(+8% excluding FX)
2024 G U IDA N CE
FY 2024 GUIDANCE
Previous (May 7) Current
Adjusted EBITDA $510 to $535 million $515 to $540 million
Adjusted EPS $2.50 to $2.65 $2.55 to $2.70
Interest Expense $105 million $105 million
Adjusted Effective Tax Rate 23% to 25% 23% to 25%
Capital Expenditures ~$140 million ~$140 million
10
Q3 2024: Adjusted EPS of $0.62
11
Highlights
• Provides performance updates on 2030
Sustainability Goals
• Reduced company’s Scope 1 & 2 GHG emissions
by 48% since 2019
• Highlights ESG performance ratings, certifications,
and awards, including recent upgrades by
Ecovadis to Gold and CDP to A-
• Reflects Great Place to Work® culture focused on
health, safety and employee engagement
2023 SUSTAINABILITY REPORT
11
Sustainability for a
Better Tomorrow
2023
SUSTAINABILITY REPORT
12
• Investor Day to be held December 4, 2024 in
New York, NY
• The focus will be to do a deep dive on the
Company’s strategy
• Further details to be communicated
2024 AVIENT INVESTOR DAY
AP P EN D IX
15
Performance
Additives
15%
Pigments
TiO2
Dyestuffs
Polyethylene
10%Nylon
Polypropylene
Styrenic Block
Copolymer
Other Raw
Materials
38%
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
RAW MATERIAL BASKET
SEGMENT DATA
U.S. & Canada
41%
36%
2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
19%
23%Industrial
Building and
7%
END MARKET REVENUE
$2,007M $358M
$1,138M $224M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$502M$3,143M
(1)
7%
17
(1) Total company sales and adjusted EBITDA of $3,143M and $502M, respectively, include intercompany sales eliminations and corporate costs
2023 REVENUE | $2 .0 B ILL ION
34%
37%
21%
END MARKET REGION
18
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 B ILL ION
52%
35%
19
6%Industrial
12%
10% Defense
Building &
END MARKET REGION
SPECIALTY ENGINEERED MATERIALS
32%
26%
Building &
6%
2% Defense
1%
(18% of sales)
2023 AVIENT REGIONAL SALES
25%
Building &
(36% of sales)Transportation
22%
Building &
12%
6%
US &
Canada
(41% of sales)
59%
22%
Building &
LATAM
(5% of sales)
20
BY END MARKET
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Dollars in millions, except for per share data)
Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders
and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special
items, to assess performance and facilitate comparability of results.
A reconciliation of these measures to their most directly comparable GAAP measures is provided in the tables below.
2024 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income from continuing operations attributable to Avient shareholders $ 33.6 $ 0.36 $ 22.1 $ 0.24
Special items, after-tax 21.8 0.24 19.6 0.21
Amortization expense, after-tax 14.8 0.16 16.2 0.18
Adjusted net income / EPS $ 70.2 $ 0.76 $ 57.9 $ 0.63
Three Months Ended
Reconciliation to EBITDA and Adjusted EBITDA: 2024 2023
Net income from continuing operations – GAAP $ 33.8 $ 22.3
Income tax expense 11.2 10.4
Interest expense, net 26.6 29.4
Depreciation & amortization 44.9 47.6
EBITDA from continuing operations $ 116.5 $ 109.7
Special items, before tax 28.1 21.7
Interest expense included in special items (1.0) —
Depreciation & amortization included in special items (0.3) (0.1)
Adjusted EBITDA $ 143.3 $ 131.3
Adjusted EBITDA as a percent of sales 16.9 % 15.9 %
1
2024 2023
Sales:
Color, Additives and Inks $ 542.0 $ 524.5
Specialty Engineered Materials 308.1 300.8
Corporate (0.4) (0.9)
Sales $ 849.7 $ 824.4
Operating income:
Color, Additives and Inks $ 86.1 $ 68.0
Specialty Engineered Materials 42.8 39.7
Corporate (56.4) (45.4)
Operating income $ 72.5 $ 62.3
Depreciation & amortization:
Color, Additives and Inks $ 21.8 $ 25.7
Specialty Engineered Materials 20.8 19.9
Corporate 2.3 2.0
Depreciation & amortization $ 44.9 $ 47.6
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 107.9 $ 93.7
Specialty Engineered Materials 63.6 59.6
Corporate (54.1) (43.4)
Other expense, net (0.9) (0.2)
EBITDA from continuing operations 116.5 109.7
Special items, before tax 28.1 21.7
Interest expense included in special items (1.0) —
Depreciation & amortization included in special items (0.3) (0.1)
Adjusted EBITDA $ 143.3 $ 131.3
Adjusted EBITDA as a percent of sales:
Color, Additives and Inks 19.9 % 17.9 %
Specialty Engineered Materials 20.6 % 19.8 %
2
Year Ended
December 31, 2023
Operating income:
Color, Additives and Inks $ 259.9
Specialty Engineered Materials 142.5
Corporate (205.6)
Operating income $ 196.8
Depreciation & amortization:
Color, Additives and Inks $ 98.3
Specialty Engineered Materials 81.5
Corporate 9.0
Depreciation & amortization $ 188.8
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 358.2
Specialty Engineered Materials 224.0
Corporate (196.6)
Other income, net 5.8
EBITDA from continuing operations 391.4
Special items, before tax 114.6
Interest expense included in special items (2.3)
Depreciation & amortization included in special items (1.9)
Adjusted EBITDA $ 501.8
3
Avient Q2 2024 Webcast Slides_for website_with non-GAAP_8_5.pdf
IR Deck - AVNT-2024.06.30 - 8.02.24 1130AM.pdf
Attachment
Avient Q2 2024 Webcast Slides_for website_with non-GAAP.pdf
AVNT cover slide.pdf
https://www.avient.com/sites/default/files/2024-11/SEM Selection Guide.pdf
NAME BASE RESIN(S) TARGET MARKETS/
Artisan™
Pre-Colored
Thermoplastics
ABS, PA
Powersports,
Lawn & Garden, Marine,
Electronics,
Home Appliances,
Cosmetic Packaging
Customizable pre-color solutions
Scratch & mar resistance
Weatherability & UV resistance
High impact resistance
Simplifies processing/replaces paint
Tailored temperature performance range: -20°C to 105°C
Bergadur™ Polyester
Formulations PBT Transportation, Consumer,
Industrial
High strength
Good creep rupture strength
Good chemical and heat resistance
Low friction and good abrasion resistance
Complēt™ Long Fiber
Reinforced Structural
Thermoplastics/
OnForce™ Long
Glass Fiber Reinforced
Polypropylene Composites
PA, PK, PP, PPA, PPS,
TPU
Consumer,
Transportation, Industrial
Long fiber technology
Elevated impact and mechanical properties at
room temperature
Increased performance at temperature extremes
Excellent creep and fatigue resistance
Glass and carbon fiber filled options
Lubricated, fire retardant, and pre-colored options
PK-based formulations offer reduced carbon footprint
as a result of the base resin
Recycled grades formulated with up to 100% post-
industrial recycled (PIR) or post-consumer recycled
(PCR) content
Edgetek™ Engineered
Polymer Formulations
ABS, LCP, PA, PC, PC/
ABS, PC/PBT, PC/PET,
PC/PSU, PEEK, PES,
PEI, POM, PPA, PPS,
PSU
Transportation,
Consumer, Industrial,
Telecommunications,
Strength and durability
Chemical and temperature resistance
High impact resistance
Weatherability
Flame retardant grades: UL 94 V-0, V-1, V-2, and 5VA
Low-density grades for weight reduction
5G properties – customizable Dk/Df and 3D/LDS
solutions
Edgetek™ REC PC
Recycled Polycarbonate
Solutions
PC
Electrical & Electronics,
Consumer Goods,
Contain 25–70% PIR or PCR content
Comparable performance to prime PC formulations
Edgetek™ PKE
Polyketone
PK
Electrical & Electronics,
Industrial, Consumer,
Excellent chemical resistance
Good strength, durability and dimensional stability
Pre-colored formulations
Non-halogen, flame retardant performance
to UL 94 V-0
Reduced carbon footprint compared to PA6 and PA66
NAME BASE RESIN(S) TARGET MARKETS/
Gravi-Tech™ Density
Modified Formulations PA, TPU, TPE, PBT Consumer,
Transportation, Industrial
Customized density, from 1.5 to 11 gm/cm3
Broad modulus and strength: flexible to rigid
Chemical and corrosion resistance
Alternative to lead and other traditional dense metals
Suitable for metallization and electroplating
Low-shrinkage grades available
Gravi-Tech™ BIO
Bio-based Formulations Bio-based PP
Cosmetic Caps &
Closures, Perfume Caps,
Spirit Bottle Caps,
Luxury Boxes,
Handles & Knobs
Customized density, from 1.5 to 11 gm/cm3
Formulated with partially bio-based resin from
renewable plant sources
Achieve equivalent performance to prime density
modified solutions
Gravi-Tech™ REC Recycled
Formulations rPP, rABS, rPA
Cosmetic Caps &
Closures, Perfume Caps,
Spirit Bottle Caps,
Luxury Boxes,
Handles & Knobs
Based on recycled resin and/or filler from
PIR and/or PCR sources
Achieve equivalent performance to prime density
modified solutions
LubriOne™ Internally
Lubricated Formulations/
LubriOne™ PKE Polyketone
PA, PBT, PC, PEEK,
PEI, PK, POM, PP, PPA,
PPS, PS
Transportation,
Electrical & Electronics,
Industrial
Low coefficient of friction
Self-lubricating
Chemical, wear, and corrosion resistance
PK-based formulations can offer a reduced carbon
footprint compared to PA6, PA66 and POM
Grades avoiding the use of fluorinated lubricants such
as PTFE are available
Maxxam™
Polyolefin Formulations PP
Consumer, Transportation,
Electrical & Electronics,
Homopolymer and co-polymer grades
Optional additives: UV, heat stabilizers
Standard grades available in natural and black
Maxxam™ BIO
Bio-Based Polyolefin
PP
Consumer, Transportation,
Electrical & Electronics,
Industrial
Formulated with 10–50% bio-content including
bio-based resin and/or filler
Bio-filler from sources including olive seed powder,
recycled coffee grounds, cellulose fiber
Achieves equivalent performance to standard
polyolefin formulations
Maxxam™ FR Flame
Retardant Polyolefin
PE, PP
Consumer, Transportation,
Electrical & Electronics,
Industrial, Energy
Flame retardant grades: UL 94 V-0, V-1, V-2, and 5VA
Elevated UL RTI ratings
Halogen-free flame retardant grades available
Maxxam™ REC
Recycled Polyolefin
PP
Consumer, Transportation,
Electrical & Electronics,
Formulated with 25–100% recycled resin from
PIR and PCR sources
Achieves equivalent performance to standard
polyolefin formulations
Nymax™/Bergamid™
Polymer Formulations
PA 6, 66, 612, 12,
co-polymers
Transportation,
Building & Construction,
Toughened grades: medium and high impact
Optional additives: heat stabilized, lubricated, impact
modified, nucleated
Standard grades available in natural and black
Pre-colored solutions available
Nymax™ BIO Bio-based
Polyamide Solutions Bio-based PA
Transportation,
Consumer Goods,
Industrial,
Building & Construction
Formulated with 16–47% natural filler, reducing
the carbon footprint
Excellent surface appearance and colorability
Lower warpage compared with PA66 glass
fiber-filled materials
Equivalent performance to PA66 glass
fiber-filled materials
Excellent dimensional stability and property retention
rate after water uptake
Nymax™ REC Recycled
Nylon Formulations PA6, PA66
Transportation, Consumer,
Household Appliances,
Electrical & Electronics,
Contains 20–100% recycled content
PIR and PCR grades available
Support the circular economy
Comparable performance to prime grades
Super tough formulations available
Customizable solution
NAME BASE RESIN(S) AVAILABLE FEATURES1
NEUSoft™ Thermoplastic
Polyurethanes and
NEU™ Custom Capabilities
PEBA, TPU, PA 11,
PA 12, PP, PE, TPE
Radiopacifiers, stabilizers, and surface modifiers
Antimicrobial technologies
Pre-colored formulations
Small lot capabilities
Short lead times
Trilliant™ HC Healthcare
ABS, LCP, PA, PA 6,
PA 66, PC, PC/ABS,
PC/PSU, PEBA, PEEK,
PES, PK, POM, PPA,
PSU
Certified to USP Class VI
Formulations locked down
Drug master file submissions by product stewardship
Pre-colored, small lot production down to 50 lb–250 lb
Sterilization, chemical resistance, and secondary process guidance
Adherence to FDM-GMP manufacturing standards
Antimicrobial technologies
Materials for radiation shielding protection
PK-based formulations offer reduced carbon footprint as a result of the base resin
Versaflex™ HC
Thermoplastic Elastomers TPE
Overmolding
Clear and heat resistant
Ultra clear grades
Ultra soft TPE gels, 30 Shore OO
FDA, USP Class VI, ISO 10993 approved grades
Sterilizable under autoclave, radiation, and EtO gas
Extrusion, injection, and blow moldable
Bio-based formulations available
HEALTHCARE SPECIALTY FORMULATIONS
NAME BASE RESIN(S) TARGET MARKETS/
PREPERM™
Low-Loss Dielectric
PPE, PBT, ABS, PP Telecommunications,
Stable and controlled dielectric performance
Ultra-low transmission loss at mmWave frequencies
up to 220 GHz
Dielectric constant (Dk) range spanning 2.55 to 23
Stat-Tech™
Static Dissipative
& Electrically Conductive
ABS, PA, PC, PC/ABS,
PC/PSU, PEEK, PEI,
PES, PP, PPA
Transportation,
Integrated EMI/RFI shielding
Conductive properties
Anti-static/dissipative properties
Corrosion resistance
Lightweighting and ease of processing
Clean room materials for semiconductors available
TPE grades are available (see page 6)
Surround™
EMI/RFI Shielding
ABS, PP, PBT, PC,
PA 66
Transportation,
Integrated EMI/RFI shielding
Long fiber technology
Conductive properties
Galvanic corrosion protection
Lightweighting and ease of processing
Therma-Tech™
Thermally Conductive
LCP, PA, PEEK, PP,
PPA, PPS Consumer, Transportation
Thermally conductive
Low coefficient of thermal expansion
NAME BASE RESIN(S) AVAILABLE FEATURES1
ECCOH™ Low Smoke
and Fume Non-Halogen
PE, PP, TPE, EVA
Flame retardant, low smoke and fume, non-halogen (LSFOH)
Flexible, low friction, easy-peel, and high-speed processing
Compatible with Avient colorants and additives
ECCOH™ XL Cross-Linkable
Solutions XLPE
Enhances the performance of traditional ECCOH LSFOH solutions
Improved oil, chemical and UV resistance, mechanical performance,
or operating temperature
FireCon™ CPE Insulation
Jacketing Formulations CPE, CPE alloy
Low and medium voltage cable jacketing
Flame retardant and 90°C deformation resistance
Oil resistance
RoHS grades available
Maxxam™ FR
Flame Retardant
Polyolefin Formulations
PE, PP UL Yellow Card for plenum applications
Halogen-free flame retardant grades available
Maxxam™ SY
Foamable Flame Retardant
Foamable PP
co-polymer
Easy processing
Variety of final densities available
Syncure™ XLPE
Cross-linkable
Polyethylene Formulations
XLPE
Low and medium voltage formulations
High performance moisture cure technology
UL bulletinized XHHW2 and VW1
Temperature, abrasion, and oil resistant
Formulations available without DBDPE
Resistant to electrical breakdown
WIRE AND CABLE SPECIALTY THERMOPLASTICS
NAME TARGET MARKETS/APPLICATIONS AVAILABLE FEATURES1
OnFlex™
Thermoplastic
Transportation, Building & Construction,
Electrical & Electronics, Industrial,
Wire & Cable
Low odor solutions
UV stabilization
High heat resistance
Automotive approved grades
Excellent compression set
Flame resistant grades
Excellent weatherability
Formulations with imbedded antimicrobial additives
reSound™ BIO
Thermoplastic
Consumer, Transportation, Industrial
Biopolymers sustainably sourced from plant-based raw materials
Utilizing 35–75% bio-renewable content
Strength and durability
Impact resistance
Pre-colored solutions
reSound™ REC
Recycled Content
Thermoplastic
Personal Care Products,
Lawn & Garden Tools, Outdoor Goods,
Office Supplies, Footwear,
Houseware Durables,
Consumer Electronics, Automotive
PIR & PCR formulations utilizing 9–83% recycled content
PCR grades formulated with recycled ocean plastics,
food packaging, engine oil, or polyvinyl butyral (PVB)
PCR grade suitable for use in specific food-contact
applications
Supports the circular economy
Can be overmolded to PP, PC, ABS, PC/AB
Comparable performance to traditional TPEs
reSound™
Ultra-Low
Carbon Footprint
Thermoplastics
Personal Care, Household Appliances,
Consumer Packaging,
Consumer Electronics
Formulated to achieve a negative, neutral or low product carbon
footprint (PCF)
Industry-first cradle-to-gate PCF range between -0.46 and -0.02 in kg
CO2 equivalent/kg product
Opaque natural appearance
Easily colorable
Comparable performance to traditional TPEs
Can be overmolded to PP or PE
Stat-Tech™ TPE
Static Dissipative
& Electrically
Conductive
Thermoplastic
Automotive, Industrial, Conveyor Belts
& Controls, ADAS Systems,
Electronic Devices
Electrical resistivity range from 10 to 10¹⁰ Ω
Hardness range from 40–85 Shore A
Protects critical electrical components from EMI/RFI and reduces static
build-up
Simplifies manufacturing
Overmolds directly onto polymer substrates
Meets regulatory compliance requirements of ATEX and ESD, and food contact
compliance grades are available
Versaflex™ and
Versaflex™ HC
Thermoplastic
Consumer, Packaging, Healthcare,
Electrical & Electronics, Appliances,
Medical Tubing, Protective Films
Vibration damping grades
Clear and heat resistant TPEs
Ultra clear grades
Ultra soft TPE gels, 30 Shore OO
FDA, USP Class VI, ISO 10993 approved grades
NSF and UL listings
Sterilizable under autoclave, radiation, and EtO gas
Extrusion, injection, and blow moldable
Formulations with imbedded antimicrobial additive
Bio-based formulations for healthcare available
GLS™ THERMOPLASTIC ELASTOMERS
Lightweighting
Complēt™ Long Fiber Reinforced Structural Thermoplastics
Edgetek™ LD Low Density Formulations
LubriOne™ Internally Lubricated Formulations
OnForce™ Long Glass Fiber Reinforced Polypropylene Composites
Stat-Tech™ Static Dissipative & Electrically Conductive Formulations
Surround™ EMI/RFI Shielding Formulations
Therma-Tech™ Thermally Conductive Formulations
Human Health & Safety NEUSoft™ Thermoplastic Polyurethanes
Versaflex™ HC Thermoplastic Elastomers
Reduced Energy Use Artisan™ Pre-Colored Thermoplastics
Versaflex™ Non-Blooming TPEs for Consumer Electronics
VOC Reduction
OnFlex™ LO Thermoplastic Elastomers
Versaflex™ Low Adhesive Build-up TPE for Protective Film Tack Layer
Versaflex™ PF Tack Layer for Surface Protective Films
Recycle Solutions
Complēt™ REC Long Fiber Reinforced Structural Thermoplastics
Edgetek™ REC PC Recycled Polycarbonate Solutions
Gravi-Tech™ REC Recycled Formulations
Maxxam™ REC Recycled Polyolefin Formulations
Nymax™ REC Recycled Nylon Formulations
reSound™ REC Recycled Content Thermoplastic Elastomer
Biopolymers
Gravi-Tech™ BIO Bio-based Formulations
Maxxam™ BIO Bio-based Polyolefin Formulations
Nymax™ BIO Bio-based Polyamide Solutions
reSound™ BIO Thermoplastic Elastomers
Versaflex™ HC BIO Thermoplastic Elastomers
Eco-conscious
Complēt™ PKE Long Fiber Reinforced Structural Polyketone Thermoplastics
Edgetek™ PKE Polyketone Formulations
Edgetek™ Solutions for Laser Welding
LubriOne™ PKE Polyketone Formulations
Gravi-Tech™ Lead Replacement Formulations
reSound™ Ultra-Low Carbon Footprint Thermoplastics Elastomers
Trilliant™ HC Healthcare Polyketone-based Thermoplastics
Trilliant™ XR Lead Replacement Thermoplastics
Sustainable Infrastructure
ECCOH™ Low Smoke and Fume Non-Halogen Formulations
ECCOH™ XL Cross-linkable Solutions
Edgetek™ Formulations for 5G
Maxxam™ FR Flame Retardant Polyolefin Formulations
PREPERM™ Low-Loss Dielectric Thermoplastics
Syncure™ XLPE Cross-linkable Polyethylene Formulations
SPECIALTY ENGINEERED FORMULATIONS
THAT SUPPORT SUSTAINABILITY
SPECIALTY
ENGINEERED
MATERIALS
FOCUS MARKETS
Our product portfolio offers customizable
solutions to serve a full range of markets,
including:
Building & Construction
Consumer
Energy
Healthcare
Packaging
Telecommunications
1.844.4AVIENT
www.avient.com
Copyright © 2024, Avient Corporation.
https://www.avient.com/sites/default/files/2024-06/SEM Asia Product Selection Guide.pdf
• Abrasion resistance
• High performance for consumer
electronics applications
MATERIAL
DESCRIPTION HARDNESS COLOR OVERMOLD
DENSITY
(g/cm3) PROPERTY KEY
CHARACTERISTIC
Versaflex™ CE 3120-65 65A Natural/
Black
PC, ABS,
Copolyester 1.15
Soft touch,
silky feel and
good abrasion
performance
Silky feeling
Versaflex™ CE 3130-70 70A Natural PC, ABS,
Copolyester 1.04
Silky feel,
long-term life,
excellent abrasion
resistance,
performed UV and
stain resistance,
chemical
resistance
Non-blooming
Versaflex™ CE 3130-80 80A Natural PC, ABS,
Copolyester 1.08
Silky feel,
good abrasion
performance and
UV resistance
Non-blooming
Versaflex™ CE 3320-70 70A Clear PC, ABS,
Copolyester 1.08
Excellent UV
resistance,
blue jean stain
Super UV resistance,
blue jean resistance
Versaflex™ CE 3320-80 80A Clear PC, ABS,
Copolyester 1.15
Excellent UV
resistance,
blue jean stain
Excellent UV resistance
Versaflex™ CE 3140-65 65A Natural PC, ABS,
Copolyester 1.00
Excellent abrasion
resistance,
chemical
resistance,
silky feel
5G transparent
Versaflex™ CE 3140-90 90A Natural PC, ABS,
Copolyester 1.01
Excellent abrasion
resistance,
chemical
resistance,
silky feel
5G transparent
VIBRATION DAMPING
ELASTOMERS
MATERIAL
DESCRIPTION HARDNESS COLOR OVERMOLD
DENSITY
Versaflex™ VDT 4201-35N 35A Natural PP 1.00
Versaflex™ VDT 4202-40B 40A Black PP 1.00
Versaflex™ VDT 5120-40 40A Natural Nylon 1.09
Versaflex™ XP 5130 -65 65A Natural PC/ABS 1.03
Versaflex™ CE 3310-80 80A Clear PC/ABS 1.15
Thermoplastic elastomers that dampen
vibrations via energy transfer
• Excellent vibration damping performance
(reduce noise/shaking)
• Adhesion to various plastics PC, PC/ABS,
ABS, PP
• Colorable and translucent grades available
• Effective in thin films
HEALTHCARE
TPEs
Avient has performance-grade materials that are
compliant with USP VI, ISO 10993-4 and 10993-5.
MATERIAL
DESCRIPTION HARDNESS COLOR OVERMOLD
DENSITY
(g/cm3) APPLICATIONS
Versaflex™ HC 2110-35N 34A Natural PP/PE 0.89 Resealing, Elastomeric
closures for injection
Versaflex™ HC 2110-57B 57A Black PP 1.01 Syringe Plungers
Versaflex™ HC MT224 75A Clear PP 0.89 Medical tubing
Versaflex™ HC BT218 67A Translucent — 0.89
Weldable
biopharmaceutical
tubing
Versaflex™ CL 2242 43A Clear PP 0.89 Overmolding for
Versaflex™ CL 2250 50A Clear PP 0.89 Overmolding for
Versaflex™ OM 1040X 40A Natural/Black PC/ABS OM 0.92 Overmolding for
Versaflex™ OM 3060 60A Clear PC/ABS OM 0.90 Overmolding for
FOOD GRADE
TPEs
Thermoplastic elastomer suitable for use
in contact with food
• Made without bisphenol A (BPA),
phthalates, or heavy metals; select
grades compliant with FDA, EU10/2011
and China GB4806
• Resists bites and tears; many are tested
and safe to use in microwaves and
dishwashers
• Can be overmolded to provide a soft
touch grip and customized to specific
comfort requirements including
vibration and noise reduction
• Can be injection molded and
overmolded right onto a substrate
including PP, ABS, etc
Eliminate the need for many
secondary operations required for
other materials so that results are
controlled and consistent
MATERIAL
DESCRIPTION HARDNESS COLOR OVERMOLD
DENSITY
COMPLIANCE
FDA EU GB
Dynalloy™
FC 3510 series 40–80A Natural PETG, ABS, PC 1.04
(Aqueous foods;
conditions D–G)
EU
10/2010
Dynalloy™
FC 7850 & 7860
series
30–80A Translucent/
Natural PP 0.88/0.99 Generic FDA EU
Versaflex™
CL2242 43A Clear PP/PC/ABS 0.89
(All foods; conditions
A–H)
Versaflex™
CL2250 50A Clear PP/PC/ABS 0.89
(Aqueous foods but
not over 8% alcohol;
conditions B-G.
https://www.avient.com/sites/default/files/2020-11/controller-grip-case-study.pdf
These grips often
feature surface designs, colors and logos tailored to
specific game platforms or brands.
Avient was able to meet the customer’s
exact requirements for color and duration.
The material was customized with
the special glow-in-the-dark colorant and laser etched
with intricate game logos.
https://www.avient.com/sites/default/files/2023-10/Cesa Laser Additives Laser Welding Product Bulletin.pdf
Solutions are available for the laser welding of
transparent/black, transparent/color, color/color,
and black/black parts.
APPLICATIONS
• Automotive parts
• Electrical and electronic housings
• Large and small appliance components
• Other consumer products, e.g., waterproof
watches, and eyewear frames
• Healthcare products – ISO and USP pre-tested
solutions are sold as Mevopur™ Healthcare
Functional Additives
BENEFITS
• Produces strong, durable, and consistent seams
• Available for polyolefins, TPE, ABS, SAN, PA, PC,
PMMA, and others on request
• Delivered as concentrates or ready-to-use
formulations
• Can be combined with color into a single
product
• Specific regulatory compliance available on
request, e.g., UL 94 recognition, EU and US food
contact
• Product guidance from our experts
PRODUCT BULLETIN
Copyright © 2023, Avient Corporation.
https://www.avient.com/sites/default/files/2023-10/reSound REC Automotive Interior Grades Product Bulletin.pdf
Due to the variation in scrap streams, they are
colored black to deliver lot-to-lot consistency, but
additional color options are also possible.
KEY CHARACTERISTICS
• 35–45% PCR/PIR content
• Meet automotive standards for VOC, FOG,
and odor
• Colored black, additional colors are possible
• Customizable formulations
• Overmoldable to PP
MARKETS & APPLICATIONS
The reSound REC 7310 series provides a more
sustainable TPE choice for automotive interior
components and delivers comparable performance
to their traditional counterparts.
https://www.avient.com/sites/default/files/resources/PolyOne%2520Investor%2520Day%2520Presentation%2520NonGAAP%2520Reconciliation%2520-%2520May%252016%252C%25202012.pdf
Platform operating income mix percentage 2005Y 2008Y 2011Y
Global Specialty Engineered Materials $ 0.4 $ 17.6 $ 45.9
Global Color, Additives and Inks 4.3 28.1 43.4
Specialty Platform $ 4.7 $ 45.7 $ 89.3
Performance Products and Solutions 75.7 31.3 62.4
Distribution 19.5 28.1 56.0
SunBelt Joint Venture 91.9 28.6 5.0
Corporate (51.5) (425.1) 20.3
Operating income (loss) GAAP $ 140.3 $ (291.4) $ 233.0
Less: Corporate operating expense (income) 51.5 425.1 (20.3)
Operating income excluding Corporate $ 191.8 $ 133.7 $ 212.7
Specialty platform operating mix percentage 2% 34% 42%
Pro forma platform operating income mix percentage
2007
Pro forma
2011Y
Specialty Platform $ 30.6 $ 89.3
Pro forma ColorMatrix - 27.7
Specialty Platform pro forma ColorMatrix $ 30.6 $ 117.0
Performance Products and Solutions 65.8 62.4
Distribution 22.1 56.0
SunBelt Joint Venture 34.8 5.0
Corporate (73.3) 20.3
Operating income pro forma ColorMatrix $ 80.0 $ 260.7
Less: Corporate and SunBelt operating income 73.3 (25.3)
Operating income excluding Corporate operating income $ 153.3 $ 235.4
Specialty platform operating mix percentage 20% 50%
Adjusted EPS 2006Y 2007Y 2008Y 2009Y 2010Y 2011Y
Net Income $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 162.6 $ 172.6
SunBelt and OxyVinyls 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)
Tax adjustments (30.0) (30.7) 147.2 (44.9) (88.3) (42.3)
Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 75.4 $ 96.1
Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3
Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.79 $ 1.02
Adjusted EPS Q1 2011 Q1 2012
Net Income $ 110.2 $ 20.2
SunBelt equity earnings, after tax (3.7) -
Special items, after tax (79.8) 6.1
Tax adjustments (1.5) 0.1
Adjusted net income $ 25.2 $ 26.4
Diluted shares 96.4 90.7
Adjusted EPS $ 0.26 $ 0.29
Platform sales and operating income (OI) 2005 2006 2007 2008 2009 2010 2011
Global Specialty Engineered Materials Sales $ 282.5 $ 345.3 $ 384.4 $ 514.0 $ 402.9 $ 517.4 $ 575.1
Global Color, Additives and Inks Sales 503.7 531.8 560.5 554.3 459.8 527.4 544.6
Specialty Platform Sales $ 786.2 $ 877.1 $ 944.9 $ 1,068.3 $ 862.7 $ 1,044.8 $ 1,119.7
Performance Products and Solutions Sales 1,136.3 1,166.2 1,086.8 1,001.4 667.7 776.3 865.4
PolyOne Distribution Sales 679.2 732.8 744.3 796.7 625.1 911.9 996.5
Corporate and Eliminations (151.1) (153.7) (133.3) (127.7) (94.8) (111.1) (118.1)
Total Sales $ 2,450.6 $ 2,622.4 $ 2,642.7 $ 2,738.7 $ 2,060.7 $ 2,621.9 $ 2,863.5
Pro forma ColorMatrix Sales 196.0
Total sales pro forma ColorMatrix $ 3,059.5
Global Specialty Engineered Materials OI $ 0.4 $ 3.9 $ 4.9 $ 17.6 $ 20.6 $ 49.7 $ 45.9
Global Color, Additives and Inks OI 4.3 8.9 25.7 28.1 25.2 37.7 43.4
Specialty Platform OI $ 4.7 $ 12.8 $ 30.6 $ 45.7 $ 45.8 $ 87.4 $ 89.3
Performance Products and Solutions OI 75.7 64.2 65.8 31.3 33.1 54.0 62.4
PolyOne Distribution OI 19.5 19.2 22.1 28.1 24.8 42.0 56.0
Sunbelt Joint Venture OI 91.9 102.9 34.8 28.6 25.5 18.9 5.0
Corporate and eliminations (21.8) (4.6) (25.5) (28.9) (40.8) (32.5) (26.4)
Special items (29.7) 39.1 (47.8) (396.2) 48.7 4.8 46.7
Operating income (loss) GAAP $ 140.3 $ 233.6 $ 80.0 $ (291.4) $ 137.1 $ 174.6 $ 233.0
Sunbelt equity income (72.5) (107.0) (40.8) (32.5) (29.7) (23.1) (5.7)
Special items 29.7 (39.1) 47.8 396.2 (48.7) (4.8) (46.7)
Operating income adjusted $ 97.5 $ 87.5 $ 87.0 $ 72.3 $ 58.7 $ 146.7 $ 180.6
Operating income pro forma ColorMatrix 27.7
Operating income adjusted pro forma ColorMatrix
$ 208.3
Global Specialty Engineered Materials - OI as a
percentage of sales 0.1% 1.1% 1.3% 3.4% 5.1%
9.6%
8.0%
Global Color, Additives and Inks - OI as a
percentage of sales 0.9% 1.7% 4.6% 5.1% 5.5%
7.1%
8.0%
Specialty platform OI as a percentage of sales 0.6% 1.5% 3.2% 4.3% 5.3% 8.4% 8.0%
Specialty platform OI as a percentage of sales -
pro forma ColorMatrix
8.9%
Global Color, Additives and Inks OI as a
percentage of sales – pro forma ColorMatrix
9.6%
PP&S operating OI as a percentage of sales 6.7% 5.5% 6.1% 3.1% 5.0% 7.0% 7.2%
Distribution OI as a percentage of sales 2.9% 2.6% 3.0% 3.5% 4.0% 4.6% 5.6%
PolyOne OI adjusted, as a percentage of sales 4.0% 3.3% 3.3% 2.6% 2.8% 5.6% 6.3%
PolyOne OI adjusted, pro forma for ColorMatrix,
as a percent of sales
6.8%
Operating income (OI) Q1 2011 Q1 2012
Global Specialty Engineered Materials OI $ 14.0 $ 11.8
Global Color, Additives and Inks OI 11.2 17.3
Specialty Platform OI $ 25.2 $ 29.1
Performance Products and Solutions OI 14.3 17.8
PolyOne Distribution OI 14.7 16.7
Corporate and eliminations (1.6) (10.2)
Special items 127.2 (8.5)
Operating income (loss) GAAP $ 179.8 $ 44.9
Research and Development (R&D) – Pro forma ColorMatrix 2011
PolyOne R&D $ 36.9
ColorMatrix R&D 3.6
Pro forma R&D $ 40.5
Gross Margin as a percentage of Sales
2006 2011
2011
Pro forma
ColorMatrix
Specialty platform sales $ 877.1 $ 1,119.7 $ 1,315.7
Specialty platform gross margin 125.2 263.4 345.9
Specialty platform gross margin percentage 14.3 % 23.5 % 26.3 %
Average Debt Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Average
PolyOne Debt $ 452.9 $ 432.9 $ 432.9 $ 432.9 $ 707.0 n/a
Pro forma ColorMatrix 274.1 274.1 274.1 274.1 - n/a
Total Debt $ 727.0 $ 707.0 $ 707.0 $ 707.0 $ 707.0 $ 711.0
Average Equity Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Average
PolyOne $ 516.0 $ 615.2 $ 629.6 $ 608.5 $ 588.3 $ 591.5
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
• Key acquisitions propel
• Shift to faster growing,
high margin, less
• 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
• 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
Operational
Commercial
Commercial
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
7% PP&S
Distribution
29%
CAI
23%
SEM
%DSS
End MarketsEnd Markets Adjusted EPSAdjusted EPS
66% 15%DSS
End MarketsEnd Markets
$1.31
$1.80
Adjusted EPSAdjusted EPS
Textiles
$1.96
$0 27 $0 21
$0.68
$0.82
$1.00
$1.31
Building &
C
PolyOne Corporation Page 7
$0.12
$0.27 $0.21 $0.13
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
10%Electrical &
Mix Shift Highlights Specialty Transformation
Old
PolyOne
Transformation
2020
80%
nc
om
e*
pe
ra
tin
g
In
80%+
43%
65%
%
o
f O
2%0%
2005 2010 2015 2020
Specialty OI $5M $87M $229M Platinum
PolyOne Corporation Page 8
*Operating Income excludes corporate charges and special items
JV's Performance Products & Solutions Distribution Specialty
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
12.2%
9.6% 9.3%
12.1%
15.8%
1 7%
4.6% 5.1% 5.5%
7.2%
8.1%
3.4%
5.1%
8.0%
8.6%
1.1% 1.3%
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
TPE + OnForce
TPE Vibration Dampening
(SEM/GLS)
Source: Outdoor Industry Association
TPE & Film
(SEM + DSS)
Thermoplastic Elastomers
TPE O F
Polymer Colorants
(CAI)
Thermatech
TPE + OnForce
OnForce
Thermoplastic Elastomers
Sheet
(DSS)
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
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%
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%
Pension Funding**
As of June 30, 2016
$700
$800 Debt Maturities
As of June 30, 2016
($ millions)
80%
90%
$547
$600
$600
$700
70%
$500
50%
$300
$400
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
$0.32
$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
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
$22
PP&S Operating Profit
points year-over-year to 12.3%
$11
$16
$10
$14
SEM O ti P fit
SEM operating margin expanded 50
basis points to a record second
$19 $20
$21
$22
SEM Operating Profit
Adjusted EPS
quarter level of 14.9% $13
$10
$14
$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
$
since 2012
Note: $ in millions, except per share data
Color, Additives and Inks
2015 Revenues: $0.8 Billion Solutions
48%
33%
16.7%
18.0%
20%+Operating Income % of Sales
Expanding Profits2015 Revenue by Industry Segment
Textiles
4.6% 5.1% 5.5%
7.2% 8.1%
12.2%
Building &
C i
PolyOne Corporation Page 24
Electrical &
1%
Specialty Engineered Materials
2015 Revenues: $0.5 Billion Solutions
49%49%
29%
14.7% 14.9%
20%+Operating Income % of Sales
2015 Revenue by Industry Segment Expanding Profits
19%
1.1% 1.3%
3.4%
5.1%
9.6%
8.0% 8.6% 9.3%
12.1%Building &
Electrical &
PolyOne Corporation Page 25
Designed Structures and Solutions
Solutions2015 Revenues: $0.5 Billion
97%
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
Industrial
24% Transportation
33%
PolyOne Corporation Page 26
2012 2013 2014 2015 2Q'16 2020
Appliances,
Construction
Performance Products and Solutions
Solutions2015 Revenues: $0.7 Billion
79%
CanadaCanada
5% Transportation
19% Wire & Cable
12-14%
Operating Income % of Sales
Expanding Profits
12.3%
2015 Revenue by Industry Segment
Building &
Electrical &
El t i
1%
%
5.5%
6.9%
3.8% 3.6%
5.5%
4.3%
6.3%
7.2%
8.3%7.7%
PolyOne Corporation Page 27
Distribution
Key Suppliers2015 Revenues: $1.0 Billion
24%
Building &
4%Consumer
13%Healthcare
Electrical &
23%
6 6%
6.5-7.5%
6 5%
Operating Income % of Sales53%
ROIC Expanding Profits
2.6%
3.0%
3.5%
4.0%
4.6%
5.6%
6.4% 5.9%
6.6% 6.5%
6.1%
PolyOne Corporation Page 28
2006 2Q 2016 Platinum
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
8 lbs steel
a pound of paper
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/2022-05/DOC 1879.pdf
Avon Lake, OH 44012
Colors, Additives & Inks
A leading provider of specialized custom color and additive
concentrates in solid and liquid form for thermoplastics,
dispersions for thermosets, as well as specialty inks, plastisol,
and vinyl slush molding solutions.
Color and additive solutions
include an innovative array of colors, special effects and
performance-enhancing and eco-friendly solutions.
Facility Locations & Businesses
Berea, OH; Color Matrix
Bethel, CT; Colorant Chromatics
Elk Grove, IL; Color and Additives
Glendale, AZ; Color and Additives
Lockport, NY; Color and Additives
Kennesaw, GA; Specialty Inks & Coatings
La Porte, IN; Sil Co Tec
Lehigh Valley, PA; Color and Additives
Massillon, OH; GSDI
Mountain Top, PA; Specialty Coatings
North Baltimore, OH; Specialty Coatings
Norwalk, OH; Color and Additives
St.
https://www.avient.com/sites/default/files/resources/Innovation_Day_-_May_2014_0.pdf
Van Hulle Senior Vice President,
President of Global Color
Additives and Inks
Robert M.
McAlindon Senior Vice President,
President of Designed
Structures and Solutions
Fernando Sanchez Global Director of
Marketing
Global Color and Additives
Craig M.
Van Hulle
Global Color Additives and Inks
Percept™ Authentication Technologies
2) Security and Safety Solutions
Julie A.