https://www.avient.com/sites/default/files/resources/PolyOne%25202017%2520Annual%2520Report.pdf
Knowsley, United Carolina
8.
Melle, Germany 8.
Suzhou, China 8.
https://www.avient.com/sites/default/files/2020-03/PolyOne_Website-12.19.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
• The time required to consummate the proposed acquisitions described in this presentation;
• The satisfaction or waiver of conditions in the purchase agreements for the proposed acquisitions;
• Any material adverse changes in the business of Clariant’s Color and Additive Masterbatch business;
• The ability to obtain required regulatory or other third-party approvals and consents and otherwise consummate the proposed acquisitions;
• Our ability to achieve the strategic and other objectives relating to the proposed acquisitions, including any expected synergies;
• Our ability to successfully integrate Clariant’s Color and Additive Masterbatch business and achieve the expected results of the acquisitions,
including, without limitation, the acquisitions being accretive;
• 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 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 plastics 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 raise or sustain prices for products or services;
• An ability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to acquisition and
integration, working capital reductions, costs reductions and employee productivity goals;
• Information systems failures and cyberattacks; 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.
You are advised to consult any further disclosures we make on related subjects in our reports on Form 10-Q, 8-K and 10-K that we provide to the
Securities and Exchange Commission.
S A F E T Y F I R S T
PolyOne Corporation 7
Injuries per 100 Workers
Spartech
Acquisition
1.3
1.1 1.1
0.85
0.65
0.57
0.54
0.97
0.84
0.74 0.74
0.69
0.51
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
G R E A T P L A C E T O W O R K
PolyOne Corporation 8
* Pro Forma for sale of DSS
Operating Income
% of Sales
2006 Q3 YTD
2019
Color, Additives &
Inks
1.7% 15.5%
Specialty Engineered
Materials
1.1% 11.8%
Distribution 2.6% 6.3%
2009 2010 2011 2012 2013 2014 2015 2016*2017* 2018
$2.43
P R O O F O F P E R F O R M A N C E
C O N S E C U T I V E
Y E A R S
PolyOne Corporation 9
10
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
$2.06
$2.21
A D J U S T E D E P S E X P A N S I O N
2018 2019E
$1.65
$1.51
Pro Forma for sale
of PP&S
T R A N S F O R M A T I O N H E A D L I N E S
PolyOne Corporation 10
C O M M O D I T Y T O S P E C I A L T Y T R A N S F O R M A T I O N
PolyOne Corporation 11
• Volume driven,
commodity
production
• Heavily tied to cyclical
end markets
• Performance largely
dependent on non-
controlling joint
ventures
• Shift to value-based
selling & an innovative
culture
• New leadership team
appointed
• Implementation of
four pillar strategy
• Investment in
commercial training
and innovation
• Faster growing, high
margin focus
• Accelerated growth
with world class
vitality index
• Significant
commercial resource
additions
• Expanded margins
with specialty focus
• Acquired strategic,
bolt-on companies to
expand technology
offerings and improve
geographic breadth
Volume Value Transformation The Future
2006 - 2013 2013 – 20192000-2005 2006 - 2013
• Landmark portfolio
transformation
creates specialty
growth company
• Sustainability / mega-
trends drive above
market growth
2020 and
Beyond
F I T W I T H F O U R P I L L A R S T R A T E G Y
PolyOne Corporation 12
Specialization
• Innovation-led organization with
heavy emphasis on R&D
• World-class expertise in color
formulation
• Strong presence in specialty end
markets including Consumer,
Packaging and Healthcare
Globalization
• Diverse geographic portfolio with
an established presence in every
major region
• Expands PolyOne’s ability to serve
customers in key growth areas
including India, China and
Southeast Asia
Operational
• Extensive manufacturing footprint
with 46 facilities
• Organizational focus on optimizing
supply chain to better serve
customers
• Color design expertise
Commercial
• Value-focused salesforce with vast
experience marketing and
commercializing specialty
technologies
• Diverse customer portfolio with
established OEM’s
People
Experienced and
talented
associates with a
winning mentality
L E V E R A G I N G G L O B A L M E G A T R E N D S
13
Facilitate
alternative
energy
solutions
Light-
weighting
Reduce
packaging
materials
Improve
recyclability
Reduce
spread of
infection
T R A N S P O R T A T I O N P A C K A G I N G H E A L T H C A R EC O N S U M E R
PolyOne Corporation
E N D M A R K E T T R A N S F O R M A T I O N
PolyOne Corporation 14
Building & Construction
18%
8%
50%
22%
High Growth End Markets
Percentage of Total Revenue
38%
E N D M A R K E T T R A N S F O R M A T I O N
PolyOne Corporation 15
8%
Building &
Construction
38%
Wire &
Cable
11%
Industrial
Electrical &
Electronic
7%
Transportation
18%
Building &
Construction
Wire &
Cable
Industrial
Electrical &
Electronic
Appliance
3%
Textiles
Transportation
13%
C O M P L E M E N T A R Y G E O G R A P H I C P R E S E N C E
PolyOne Corporation 16
38% Europe
33%
Asia
19%
22%
Europe
Asia & Middle East
31%
1%
Color & Engineered
Materials
Clariant Color & Additive
Masterbatch Business
Net Sales by Geographic Region
31%
Europe
36%
Asia & Middle East
24%
3%
Pro Forma Color &
Engineered Materials
531
710
1,042
130
164
208
504
663
880
2014 2018 2019E PF*
R&D / Technical Marketing Sales
PolyOne Corporation 17
+ 34%
+ 26%
+ 32%
E X P A N S I O N O F COMMERCIAL RESOURCES D R I V I N G G R O W T H
$2.9 $2.9
$3.5
2015 2016 2017 2018 2019E
PF
Total
+ 9%
Organic
+ 5%
Revenue in Billions
Total
+ 10%
Organic
+ 7%+ 47%
+ 27%
+ 33%
$4.0
$3.2
2019E PF*
P R I O R A C Q U I S I T I O N S : P R O O F O F P E R F O R M A N C E
PolyOne Corporation 18
Commercial
Resources
Operating
Income
($ in millions)
Operating
Margins
243
340
$36
$96
11%
Established Acquisitions
(> 7 years)
+ 40% + 165% + 900 bps
U N I F I E D F O C U S O N S U S T A I N A B I L I T Y
PolyOne Corporation 19
2006 - 2013
2013 – 2019
PEOPLE
PRODUCTS PLANET
PERFORMANCE
Clariant Color & Additive
Masterbatch Business
• Building mini-recycling plants to
facilitate customer projects on
design for recycling - CycleWorks
• Uses packaging additives &
colorants to improve recyclability
and enhance automated sorting
• Manufactures oxygen scavengers
to extend shelf-life of perishable
items and reduce material
requirements
• Combines UV-blocking additive
colorants & other barriers to
prevent spoilage and waste
• Offers spin-dyeing solutions that
use significantly less water than
traditional methods, allowing for
sustainable coloration of textiles
• Produces infrared absorbing
additives that reduce energy
requirements for bottle
manufacturing
($ in millions)
(Continuing
Operations)
Clariant Color &
Additive Masterbatch
Business
Synergies
New
2019E Total Sales $2,860 $1,150 $4,010
2019E Adjusted EBITDA $310 $130 $60 $500
% Margin 10.8% 11.3% 12.5%
2019E CapEx $60 $85
% Sales 2.1% 2.1%
2019E Free Cash Flow $170 $250
2019E Adjusted EPS $1.65 $2.22
2019E PF Adjusted EPS $1.65 $2.50
P O L Y O N E + C L A R I A N T C O L O R & A D D I T I V E
M A S T E R B A T C H B U S I N E S S
PolyOne Corporation 20
(1) Excludes step-up of depreciation & amortization related to purchase accounting of transaction
(1)
$0.85/share
O V E R 8 5 % O F A D J U S T E D E B I T D A F R O M S P E C I A L T Y
PolyOne Corporation 21
46%
66%
0%
60%
80%
100%
2005 2010 2015 2019E PF
%
o
f
A
d
ju
s
te
d
E
B
IT
D
A
*
JV's Performance Products & Solutions Distribution Specialty
7%
87%
* Adjusted EBITDA is EBITDA excluding corporate costs and special items
** 2019E Pro Forma for PP&S Divestiture and Clariant Color & Additive Masterbatch business acquisition with synergies
Specialty EBITDA $14M $117M $273M $500M
**
PolyOne Corporation 22
T R A N S A C T I O N O V E R V I E W
• Expected mid-2020, subject to regulatory approvals and customary closing conditions
Closing
Conditions /
Timing
• Committed financing in place
• Permanent financing to be combination of available cash on-hand, new debt and equity component to limit leverage
• Equity issuance of $400 to $500MM
• Target net leverage below 3.5x, 3.1x synergized, with intention to de-lever below 3.0x within 2 years
PolyOne Corporation 23
• $1.45 B net purchase price
• Represents 11.1x adjusted EBITDA (excluding synergies), 7.6x adjusted EBITDA (including synergies)
• Pre-tax synergies of $60MM expected to be fully realized by the end of 2023
• Synergies realized from sourcing, operational, technology / commercial, and general administrative
Transaction
Value
Synergies
Estimated Synergy Breakdown
$60MM
• Expect EBITDA synergies of $60MM
– Proven integration expertise with a decade of acquisition experience
– Administrative synergies reflect reduction of duplicative internal and
third-party costs
• Run rate synergies of $20MM by the end of Year 1 with $60MM
achieved by the end of Year 3
• Significant additional opportunity for geographical expansion
– Clariant Color & Additive Masterbatch business has complementary
regional presence in key growth areas including India & Southeast
Asia
• Opportunity to accelerate growth with a combined portfolio of
innovative solutions aligned with sustainability megatrends
Sourcing
Operational
30%
Administrative
30%
PolyOne Corporation 24
S I G N I F I C A N T S Y N E R G Y O P P O R T U N I T I E S
C A P I T A L S T R U C T U R E / L E V E R A G E
PolyOne Corporation 25
At Close Year 1 Year 2
3.2x
3.5x
3.1x
2.6x
Pro Forma with Synergies
2019E PF
Two year leverage goal
(1) Pro Forma Capitalization is for illustrative purposes only; amounts may vary depending on various market and other factors.
https://www.avient.com/knowledge-base/article/polymer-services-frequency-asked-questions?rtype[]=1164
Materials sampling and evaluation
Ask your material supplier for more information about startup, processing temperatures, shutdown, drying, gate size, gate types, flow rates, purging, regrind, etc.
https://www.avient.com/investor-center/news/polyone-completes-clariant-masterbatch-acquisition-announces-new-name-avient-corporation
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 achieve the strategic and other objectives relating to the acquisition, including any expected synergies; our ability to successfully integrate Clariant's masterbatch business and achieve the expected results of the acquisition, including, without limitation, the acquisition being accretive; 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 effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks; the current and potential future impact of the COVID-19 pandemic on our business, results of operations, financial position or cash flows; changes in polymer consumption growth rates and laws and regulations regarding plastics in jurisdictions where we conduct business; 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 the anticipated financial benefit from initiatives related to acquisition and integration, working capital reductions, costs reductions and employee productivity goals; our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends; information systems failures and cyberattacks; 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.
https://www.avient.com/knowledge-base/article/developing-your-esg-framework
Each category is scored out of 100 and given a total rating of bronze, silver, gold, or platinum.
Currently, 70% of our suppliers have achieved an EcoVadis Silver rating that is associated with the UN Global Compact guidelines.
Avient is committed to sustainable collaborations, as demonstrated by having more than 70% of our raw material suppliers reach an EcoVadis Silver rating.
https://www.avient.com/knowledge-base/article/developing-your-esg-framework?sust[]=1133
Each category is scored out of 100 and given a total rating of bronze, silver, gold, or platinum.
Currently, 70% of our suppliers have achieved an EcoVadis Silver rating that is associated with the UN Global Compact guidelines.
Avient is committed to sustainable collaborations, as demonstrated by having more than 70% of our raw material suppliers reach an EcoVadis Silver rating.
https://www.avient.com/products/engineered-polymer-formulations/general-engineered-formulations/lubrione-internally-lubricated-formulations
Polytetrafluoroethylene (PTFE) offers the lowest COF of any internal lubricant, allowing for significantly lower wear rates than traditional plastics.
Silicone behaves primarily as a boundary lubricant, and significantly reduces wear rates and COF when formulated into thermoplastics at low levels.
Molybdenum disulfide is typically formulated with nylon resins to reduce wear rates.
https://www.avient.com/sites/default/files/2025-02/Hammerhead FR Panel eBook.pdf
Census Bureau, HUD, October 18, 2024
Sep-23 Sep-24
Permits
Starts
Completions
Factors affecting these data points include labor shortages, rising demand for
housing, mortgage interest rates, and a heightened emphasis on sustainability.
Traditional material prices have been volatile post-
pandemic, rising from 8 to 77%.
To get material samples and engineering data on Hammerhead FR flame
retardant composite panels, let’s start a conversation.
https://www.avient.com/sites/default/files/2023-09/Avient Sustainability Day 2023 - Website %289.19%29.pdf
EBITDA Margins
(1)
5.4%
11.5%
16.0%
2006 2018 2023E
• Delivered on organic growth combined with
transformative and bolt-on acquisitions
• Divested commodity businesses tied to more
cyclical end markets
• Expanded presence in high growth areas of
sustainable solutions, composites, healthcare
applications and emerging regions
LONG-TERM REVENUE GROWTH DRIVERS
Avient Corporation 14
Growth Drivers
Long-Term
Growth Rate
Sustainable Solutions 8–12%
Composites 8–10%
Healthcare 8–10%
Asia / LATAM 5%
Other (GDP growth) 0–2%
Avient 6%
60%+
Key Growth
Drivers
Sustainable
Solutions
Composites, Healthcare,
Asia / LATAM
Overlap
(GDP Growth)
HISTORICAL GROWTH DRIVER PERFORMANCE
Avient Corporation 15
Composites
$51
$84
$212
$668
$108 $113
$231
$293
Asia/Emerging Regions
$265
$358
$726
$830
12%
$340
$455
$790
$1,175
Sustainable Solutions
(Sales $ in millions)
Avient Corporation 16
$405M
$455M
$550M
$790M
$915M
2016 2017 2018 2019 2020 2021 2022
Revenue From Sustainable Solutions 2016-2022
($ in millions)
11% Organic CAGR
$1,175M
Eco-Conscious
Recycle Solutions
VOC Reduction
Sustainable Infrastructure
Reduced Energy Use
Bio-polymers
Solutions to increase
recycled content and
minimize plastic waste
Solutions to reduce
weight and energy
consumption
Solutions to preserve and
protect natural resources
& human life
SUSTAINABILITY: FOCUS TODAY
Sustainability Strategy
Walter Ripple
Vice President, Sustainability
Avient Corporation 17
OUR SUSTAINABILITY COMMITMENT
As the world’s premier provider of specialized and sustainable materials,
services, and solutions, Avient is committed to meeting the needs of the present
without compromising future generations’ ability to meet their needs.
Per Carlsson, Manufacturing and Operations
Avient Corporation 71
80
2022 2030
Medical Plastics Market Size
PRESERVE – TAKEAWAY
Protecting Human Life and Enabling Connectivity Drives Growth Projections
Examples
Covered
56%
Other Applications
44%
2022
$525M (in
$
Bi
lli
s)
8% CAGR 34% CAGR
5G Infrastructure Market Size
12
92
10
70
80
2023 2024 2025 2026 2027 2028 2029 2030
(in
$
Bi
lli
s)
Source: Grand View Research Source: Global Data
Summary
Senior Vice President and Chief Financial Officer
Avient Corporation 72
OUR SUSTAINABILITY REPORT
Avient Corporation 73
Avient Corporation 74
2030 SUSTAINABILITY GOALS
Avient Corporation 75
PERFORMANCE AND RECOGNITION
1
2
5
ESG Ratings Performance
ESG Awards and Certifications
top 13%
94th
percentile
Avient Corporation 76
SUSTAINABILITY INNOVATION AWARDS
Ultra-Low Carbon
Footprint TPE
Innovation Award, Finalist:
PCR Colorants + Additives
Sustainable Packaging Innovation,
Finalist: U.S.
Plastics Pact
Post-Consumer Recycle (PCR)
Color Predictive Tool
Innovation Award, Winner:
Product Technology Innovation, Winner:
Plastics Recycling Awards Europe 2023
Additive for
Enhanced Recycling
Innovation Award, Finalist:
Product Technology Innovation, Finalist:
Plastics Recycling Awards Europe 2023
Service Innovation
Enables Quality Recycle
Product Innovation
Enables PCR Claims + Low CO2
Product Innovation
Protects Quality Recycle
…are Growing at Twice the Rate as
Conventional ProductsSustainably-Branded Products…
Consumers
Are demanding
recyclability and eco-
conscious products
Governments
Are mandating changes
through legislation, taxes,
and regional accords
STAKEHOLDER INFLUENCE DRIVES DEMAND
For Sustainable Products From Sustainable Companies
Brand Owners
Have committed to ambitious
goals to achieve
sustainability metrics
Avient Corporation 77
Avient Corporation 78
SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH
8-12%
Long Term
Growth
18
46
2023 2032
Global Offshore Annual
Wind Installations
(in Gigawatts)
2022 2030
Medical Plastics
Market Size
(in $Billions)
12% CAGR
3% CAGR
Recycled
Virgin
Growing Demand for
Recycled Content
Avient Sustainable
Solutions
11% CAGR
8% CAGR
Sources: McKinsey, Bloomberg, Grand View Research
Avient Corporation 79
Increasing the use
of recycled content
Reducing weight to
lower fuel consumption
2022 SALESDESCRIPTION
$340M
$310M
$525M
OUTCOMES
Enabling customers to
advance the circular economy
Shrinking carbon footprint
and decreasing emissions
Making our planet a better
place for all
Using fewer natural resources;
protecting human life
$1,175MTOTAL SALES
SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH
AVIENT IS WELL-POSITIONED
A Clean House
Avient holds leading ratings on
ESG matters of importance to
customers, countries, and
key stakeholders
Leading Portfolio
Our formulation expertise and materials
are meeting the unique sustainability
needs of our customers around the world
in endless applications
8-12% Long-Term Growth RateAvient’s Sustainable Solutions
Investing in Innovation
85% of our opportunity funnel is
directed at sustainable solutions
addressing unmet customer needs
Avient Corporation 80
Avient Corporation 81
ADJUSTED EBITDA MARGIN EXPANSION
• Transformative acquisitions
combined with divestitures of
more cyclical businesses have
improved margins over 400 bps
since 2018
• 20% long-term margin goal to be
driven by key growth drivers, with
sustainable solutions playing a
meaningful role
5.4%
11.5%
16.0%
17.3%
20% 20.0%
2006 2018 2023E Recovery Growth
Drivers
Strategic
Objective
20%+
+1%+
+3%+
Community Service
7x Safer
than Industry Average
World-Class Safety
Leadership Development
Over $19 million
raised since 2007
Diversity & Inclusion
PEOPLE AND CULTURE
Avient Corporation 82
Avient Corporation 83
• 6% annualized long-term sales growth leveraging
sustainable solutions, composites, healthcare, and
emerging regions
• Expand EBITDA margins to 20%
• Deliver annual EBITDA and EPS growth of
10% and 15%
• Maintain asset-light, 80% free cash flow conversion
profile and be valued as a specialty formulator
• Continue fostering our Great Place to Work® culture
LONG-TERM OBJECTIVES
Avient Corporation 84
Wrap Up and Q + A
Chairman, President, and Chief Executive Officer
Avient Corporation 85
Investor Deck_9_19_23 v4_WEBSITE_GAAP.pdf
2023 SR Non-GAAP Rec v3
https://www.avient.com/sites/default/files/2024-06/Cesa Flame Retardant Product Selection Guide %281%29.pdf
Halogenated flame
retardants generally have the lowest usage rate
POLYMER PRODUCT NAME PROPERTY PERFORMANCE TYPE DOSAGE/
LDR
MATERIAL
CODE
ABS FRABS92991 UL 94 Halogen 35% CC10292991WE
ABS FRABS52399 UL 94 Halogen 5–14% CC10252399WE
HDPE Cesa Flam MB 5101AH UL 94 Halogen 7–16% PEAN698479
Nylon Cesa Flam MB 5728H UL 94 Halogen 8–14% ABA0698450
Nylon Cesa Flam MB 5731NH UL 94 Non-halogen 8–20% ABAN698410
PC Cesa Flam NCA0820018NH UL 94 Non-halogen 2–4% NCA0820018
PC NCAN-Z0N-FN FLMRET 698419 UL 94 Non-halogen 3–8% NCAN698419
PE FRPE94802 ASTM E84 Non-halogen 100% CC103094802F
PE FRPE41011 UL 94 Halogen 20–30% CC1034101160
PET Cesa Flam MB 5525NH UL 1441, UL 94 Non-halogen 6–8% NEAN698534
PET FRPET65462 UL 94 Non-halogen 5–12% CC103265462F
PET/ PBT Cesa Flam MB 5532NH NFPA 701 Non-halogen 4–6% NBAN698451
PP Cesa Flam MB 5201H UL 94 Halogen 6–30% PPAN698410
PP Cesa Flam MB CT-1629NH Cal TB 133, UL 94 Film, NFPA 701 Non-halogen 6–8% PPAN698428
PP FRPP365370 UL 94 Non-halogen 10–20% CC103653702F
PP Copolymer FRPP37654 UL 94 5VA Halogen 100% CC10337654WE
PP Copolymer FRPP53484 UL 94 Halogen 10% CC1035348460
PS FRPS62722 ASTM E84 Halogen 2–4% CC10262722WE
PS/HIPS Cesa Flam SLA0820014H UL 94 Halogen 4–8% SLA0820014H
TPU Cesa Flam 98461NH UL 94 Non-halogen 6–14% RUA0698461
F-SERIES FLAME RETARDANT ADDITIVES
HDPE/PE F-Series UL 94 Non-halogen 10–25% PEA0820024
PE F-Series UL 2335, FM 4998 Non-halogen 10–25% PEA0820069