https://www.avient.com/sites/default/files/2024-06/Foaming Prediction Service Product Bulletin_A4.pdf
The foaming simulation is carried out under
confidentiality and is currently available for
components made from polypropylene (PP), talcum
filled PP, and glass fiber filled PP, with a minimum
part thickness of 2mm.
KEY CHARACTERISTICS
• Provides a mold-filling study
• Helps maximize part weight reduction
• Predicts mechanical properties
• Enables the calculation of necessary clamping
force
• Reduces physical trials
• Optimizes tool design and production processes
KEY APPLICATIONS
• Components made from polypropylene (PP),
talcum filled, and glass fiber filled PP with a
minimum part thickness of 2mm
• Automotive structural parts e.g., door panels,
dashboard carriers
• Consumer goods e.g., interior fridge parts,
transport boxes and composters, vacuum
cleaner base panels
PRODUCT BULLETIN
Sustainability Spotlight
1 Moldflow® is a registered trademark of Autodesk®
* Avient Foaming Prediction Service will provide general information
based on available inputs.
https://www.avient.com/resource-center?document_subtype=0&document_type=59&form_id=resource_filter_form&industry=0&op=FILTER RESULTS&product_family=0&product_name=0&page=2
Low haze antimicrobial additives provide visual clarity in recycled material
Recycled Hips Injection Cover of Printer
PP Inhaler Roll Cap
https://www.avient.com/resource-center?document_type=59&document_subtype=0&industry=0&product_family=0&product_name=0&op=FILTER RESULTS&form_id=resource_filter_form&page=2
Low haze antimicrobial additives provide visual clarity in recycled material
Recycled Hips Injection Cover of Printer
PP Inhaler Roll Cap
https://www.avient.com/resource-center?document_type=59&page=2
Low haze antimicrobial additives provide visual clarity in recycled material
Recycled Hips Injection Cover of Printer
PP Inhaler Roll Cap
https://www.avient.com/products/polymer-additives/antioxidant-additives
Cesa™ Nox A4R Additive for Enhanced Recycling
Gravi-Tech™ REC Recycled Formulations
Nymax™ REC Recycled Nylon Formulations
https://www.avient.com/sites/default/files/2021-05/avnt-first-quarter-2021-earnings-presentation.pdf
Clariant Masterbatch
performance will be included in this year’s report.
2021 Sustainalytics ESG Risk Ranking
Newsweek Most Responsible Companies
2016 2017 2018 2019 2020PF
VOC Reduction Reduced Energy Use Bio-derived Content
Eco-conscious Renewable Energy Applications Recyclability
Reduced Material Requirements Lightweighting
$275M
$325M
$355M
$410M
$560M
13 (1) Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”)
(2) 2020 is Pro forma to include full year of the Clariant Masterbatch business
(2)
Revenue from Sustainable Solutions 2016 – 2020
SUSTAINABILITY FOR A BETTER TOMORROW
14
• Revenue from sustainable solutions expected to grow 11% in
2021 as our innovation efforts and collaboration with customers
continues to accelerate
• Relentless focus on delivering our 2030 sustainability targets to
benefit the planet and people of the world while adding value to
our customers, communities, associates and shareholders
• Investments centered around innovation and global sustainability
megatrends
o Improving Recyclability – Technologies that allow for increased use
of post-consumer recycled (PCR) material
o Light-weighting – Composites and CAI applications to reduce weight
and material requirements, which minimize energy and carbon
emissions
o Eco-Conscious – Health and human safety applications as well as
Avient’s alternative materials to replace lead, PVC, halogens, BPA
and other less eco-friendly options
o Avient CycleWorks – New innovation center dedicated to advancing
recycling and the circular economy through collaboration with
customers and brand owners
Enable 100% of products manufactured for
packaging applications to be recyclable or
reusable.
With the Clariant Masterbatch
acquisition and divestment of the
PP&S business, our exposure is now
concentrated in less-cyclical and
high-growth markets, with increased
geographic diversification and a more
specialized portfolio that can
significantly expand EBITDA margins.
20
Avient reflects 2021 estimated EBITDA of $560M
OUR VALUATION VERSUS PEERS
Avient Specialty
Other
10.2
17.7
16.0
14.9 14.6
11.6 11.1
26.7
24.0
22.8
14.3
12.7
11.5 11.2 11.1 11.0 10.3 10.1
9.5 9.4
8.3
7.0
Median: 11.1xMedian: 14.8x
SUMMARY: WHY INVEST IN AVIENT?
https://www.avient.com/sites/default/files/2024-05/Smartbatch-Outdoor Chair-Case Study Snapshot_0520.pdf
PE Tarpaulin manufacturer
PP MULTI-
FILAMENT
MANUFACTURER
O U T D O O R C H A I R
• Resist UV light degradation in U.S. & European climates
for an extended period
• Maintain color stability and resist brittleness for a minimum
of 3 years
• Reliable supplier with good product quality and stable
supply
• Offered a UV stabilizer for PP multi-filament
yarn
• Delivered good light fastness
• Provided cost effectiveness by combining
colorant and UV additive solutions
• Had in-house Q-Lab UV (QUV) tester to meet
strict customer standards
Smartbatch Combination Colorants &
Additives
KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/products/polymer-colorants/color-additive-combination-masterbatches/smartbatch-combination-colorants-additives
Slide 1: Pp Multi-filament manufacturer
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Goldman%2520Sachs%2520Basic%2520Materials%2520Conference%2520-%2520May%25202016.pdf
PolyOne Corporation Page 4
PolyOne Commodity to Specialty Transformation
• Volume driven,
commodity producer
• Heavily tied to
cyclical end markets
• Performance largely
dependent on non-
controlling joint
ventures
2000-2005 2006 - 2009 2010 – 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
Confirmation of Our Strategy
The World’s Premier Provider of Specialized
Polymer Materials, Services and Solutions
Specialization Globalization
Operational
Excellence
Commercial
Excellence
Associates
PolyOne Corporation Page 6
26 Consecutive Quarters of EPS Growth
PolyOne Corporation Page 7
2015 Revenues: $3.4 Billion
End Markets
2015 Revenues: $3.4 Billion
PolyOne
At A Glance
$0.12
$0.27 $0.21 $0.13
$0.68
$0.82
$1.00
$1.31
$1.80
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Adjusted EPS
66%
Building &
10%Electrical &
Textiles
$1.96
Distribution
29%
PP&S
CAI
23%
SEM
15%DSS
PolyOne Corporation Page 8
Old
PolyOne
*Operating Income excludes corporate charges and special items
43%
65%
0%
40%
80%
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
PolyOne Corporation Page 9
Color and Engineered Materials at the
Heart of Specialty Transformation
OPERATING MARGIN
1.7%
4.6% 5.1% 5.5%
7.2%
8.1%
12.2%
16.7% 17.0%
COLOR, ADDITIVES
AND INKS
1.1% 1.3%
3.4%
5.1%
9.6%
8.0%
8.6%
9.3%
12.1%
16.6%
SPECIALTY
ENGINEERED MATERIALS
PolyOne Corporation Page 10
2006 1Q 2016 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income %
Specialty:
Color, Additives & Inks 1.7% 17.0% 20%+
Specialty Engineered Materials 1.1% 16.6% 20%+
Designed Structures & Solutions N/A 2.5% (TTM) 8 – 10%
Performance Products &
Solutions 5.5% 11.9% 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 22% 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 11
Therma-Tech™ & Sheet
GEON™ Vinyl
Polymer ColorantsTherma-Tech™
TPE’s & Film
TPE + OnForce™
Gravi-Tech™
Page 11
Film
Target End Markets… Healthcare
PolyOne Corporation Page 12
TPE + OnForce
OnForce
TPE Vibration Dampening
(SEM/GLS)
TPE & Film
(SEM + DSS)
Polymer Colorants
(CAI)
Thermatech
Thermoplastic Elastomers
TPE + OnForce
OnForce
Thermoplastic Elastomers
Polymer Colorants
(CAI)
Sheet
(DSS)
Source: Outdoor Industry Association
Target End Markets… Outdoor High Performance
PolyOne Corporation Page 13
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 14
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 15
Innovation Drives Earnings Growth
*Specialty Platform revenue from products introduced in last five years
$53
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
34%
CAI & SEM
Gross Margin
43%
Target ≥ 35%
Innovation Pipeline Potential
PolyOne Corporation Page 16
2,883
2,414
Volume
(lbs in millions)
-16%
$103
$192
Commercial, R&D
and Marketing
Spending ($M)
+86%
$303
$721
Adjusted
Gross Profit ($M)
+138%
Ours is Not a Cost Cutting Story
PolyOne Corporation Page 17
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 18
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%
16.2%
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 19
30%
40%
50%
70%
80%
90%
2008 1Q 2016
Pension Funding**
As of March 31, 2016
Debt Maturities & Pension Funding
Net Debt / Adjusted EBITDA*= 2.5x
** includes US-qualified pension plans only*TTM 3/31/2016
$550
$600
$200
$300
$400
$500
$600
$700
$800
2022 2023
Debt Maturities
As of March 31, 2016
($ millions)
Coupon Rate: 3.750% 5.250%
PolyOne Corporation Page 20
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
1.5 million shares in
Q1 2016
Repurchased 17.3
million shares since
early 2013
10.0 million shares are
available for
repurchase under the
current authorization
$0.24
PolyOne Corporation Page 21
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 22
Appendix
PolyOne Corporation Page 23
$0.24
$0.31
$0.44 $0.46
$0.56
$0.00
$0.25
$0.50
$0.75
1Q'12 1Q'13 1Q'14 1Q'15 1Q'16
Adjusted EPS
1Q 2016 Financial Highlights
Performance Products & Solutions
operating margin grew 540 basis
points year-over-year to 11.9%
Distribution operating margin
expanded 60 basis points to a record
first quarter level of 6.5%
First quarter adjusted EPS has
grown on average 24% per year
since 2012
$11
$0
$5
$10
$15
$25
1Q'15 1Q'16
PP&S Operating Profit
$16
$18
$10
$12
$14
$16
$18
1Q'15 1Q'16
POD 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%
12.2%
16.7% 17.0%
Color, Additives and Inks
2015 Revenues: $0.8 Billion Solutions
Expanding Profits2015 Revenue by Industry Segment
48%
33%
Building &
Electrical &
1%
31%
Textiles
PolyOne Corporation Page 25
1.1% 1.3%
3.4%
5.1%
9.6%
8.0% 8.6% 9.3%
16.6%
Specialty Engineered Materials
2015 Revenues: $0.5 Billion Solutions
2015 Revenue by Industry Segment Expanding Profits
12.1%
49%
29%
Building &
Electrical &
19%
15%
PolyOne Corporation Page 26
1.4%
5.6%
7.3%
3.0%
8-10%
0.4%
2012 2013 2014 2015 1Q'16 2020
Designed Structures and Solutions
Solutions2015 Revenues: $0.5 Billion
Expanding Profits2015 Revenue by Industry Segment
Appliances,
Building &
Construction
Industrial
24%
Packaging
19%
Transportation
33%
97%
PolyOne Corporation Page 27
Building &
31%
Electrical &
1%
5% Transportation
19% Wire & Cable
5.5%
6.9%
3.8% 3.6%
5.5%
4.3%
6.3%
7.2%
8.3%
12-14%
Performance Products and Solutions
Solutions
Expanding Profits
2015 Revenues: $0.7 Billion
11.9%
2015 Revenue by Industry Segment
7.7%
79%
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%
6.5%
15%
54%
2006 1Q 2016
Distribution
Key Suppliers2015 Revenues: $1.0 Billion
ROIC Expanding Profits
6.1%
Building &
4%Consumer
Electrical &
23%
24%
http://www.avient.com/Pages/VariationRoot.aspx
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.
https://www.avient.com/company/sustainability/sustainability-report/goals-commitments/2030-goals-progress/un-sdgs
These solutions help enable customers to achieve their sustainability goals by increasing the use of post customer recycled (PCR) and post industrial recycled (PIR) content, enabling recyclability, increasing adoption of biopolymers and minimizing plastic waste.
We are dedicated to ensuring 100% of our products manufactured for packaging applications will be recyclable or reusable, reaching 91% in 2023.
https://www.avient.com/news/avient-debuts-thermoballistic-thermoplastic-composite-panels-camx-2023
Polystrand™ continuous fiber reinforced unidirectional tapes and multi-axial laminates, including recycled content formulations
Thermoplastic recycled-content composite offerings further support a circular economy and help customers lessen their environmental footprint.
Unique technologies that improve the recyclability of products and enable recycled content to be incorporated, thus advancing a more circular economy