https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Goldman%2520Sachs%2520Basic%2520Materials%2520Conference%2520-%2520May%25202016.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
Our ability to realize anticipated savings and operational benefits from the realignment of assets, including the closure of manufacturing facilities;
The timing of closings and shifts of production to new facilities related to asset realignments and any unforeseen loss of customers and/or disruptions of
service or quality caused by such closings and/or production shifts;
Separation and severance amounts that differ from original estimates;
Amounts for non-cash charges related to asset write-offs and accelerated depreciation realignments of property, plant and equipment, that differ from
original estimates;
Our ability to identify and evaluate acquisition targets and consummate acquisitions;
The ability to successfully integrate acquired companies into our operations, retain the management teams of acquired companies, retain relationships
with customers of acquired companies, and achieve the expected results of such acquisitions, including whether such businesses will be accretive to our
earnings;
Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and
cost of credit in the future;
The financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate
liquidity) to maintain their credit availability;
The speed and extent of an economic recovery, including the recovery of the housing market;
Our ability to achieve new business gains;
The effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks;
Changes in polymer consumption growth rates and laws and regulations regarding the disposal of plastic in jurisdictions where we conduct business;
Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online;
Fluctuations in raw material prices, quality and supply and in energy prices and supply; production outages or material costs associated with scheduled
or unscheduled maintenance programs;
Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters;
An inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital
reductions, cost reductions and employee productivity goals;
An inability to raise or sustain prices for products or services;
An inability to maintain appropriate relations with unions and employees;
Our ability to continue to pay cash dividends;
The amount and timing of repurchases of our common shares, if any; and
Other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and
changes in the rate of inflation.
The above list of factors is not exhaustive.
We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
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.
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?
https://www.avient.com/sites/default/files/2021-07/avnt-q2-2021-earnings-release.pdf
The company noted it will provide more details on its second quarter results and outlook during
the webcast scheduled for 8:00 a.m.
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.
Three Months Ended June 30,
2021 2020
GAAP
Results
Special
Items
Adjusted
Results
GAAP
Results
Special
Items
Adjusted
Results
$ 89.8 $ 14.2 $ 104.0 $ 31.3 $ 2.4 $ 33.7
Income tax expense - GAAP (20.4) — (20.4) (7.9) — (7.9)
Income tax impact of special items (Attachment 3) — (3.4) (3.4) — (0.7) (0.7)
Tax adjustments (Attachment 3) — 0.9 0.9 — 0.9 0.9
Income tax (expense) benefit $ (20.4) $ (2.5) $ (22.9) $ (7.9) $ 0.2 $ (7.7)
Effective Tax Rate(1) 22.7 % 22.0 % 25.1 % 22.5 %
(1) Rates may not recalculate from figures presented herein due to rounding
13
Six Months Ended June 30,
2021 2020
GAAP
Results
Special
Items
Adjusted
Results
GAAP
Results
Special
Items
Adjusted
Results
$ 192.4 $ 16.6 $ 209.0 $ 76.3 $ 12.0 $ 88.3
Income tax expense - GAAP (43.3) — (43.3) (19.8) — (19.8)
Income tax impact of special items (Attachment 3) — (4.3) (4.3) — (2.7) (2.7)
Tax adjustments (Attachment 3) — 2.0 2.0 — 1.9 1.9
Income tax (expense) benefit $ (43.3) $ (2.3) $ (45.6) $ (19.8) $ (0.8) $ (20.6)
Effective Tax Rate(1) 22.5 % 21.8 % 25.9 % 23.3 %
(1) Rates may not recalculate from figures presented herein due to rounding
The following pro forma adjustments are referenced by management to provide comparable business performance by
incorporating the Clariant Masterbatch business in periods prior to the acquisition date (July 1, 2020).
https://www.avient.com/sites/default/files/2021-10/avnt-q3-2021-news-release.pdf
The company noted it will provide more details on its third quarter results and outlook during the
webcast scheduled for 8:00 a.m.
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.
5
Non-GAAP Financial Measures
The Company uses both GAAP (generally accepted accounting principles) and non-GAAP
financial measures.
Three Months Ended September 30,
2021 2020
GAAP
Results
Special
Items
Adjusted
Results
GAAP
Results
Special
Items
Adjusted
Results
$ 61.1 $ 19.9 $ 81.0 $ 5.3 $ 50.0 $ 55.3
Income tax expense - GAAP (8.5) — (8.5) (2.7) — (2.7)
Income tax impact of special items (Attachment 3) — (4.6) (4.6) — (12.7) (12.7)
Tax adjustments (Attachment 3) — (3.6) (3.6) — 3.0 3.0
Income tax (expense) benefit $ (8.5) $ (8.2) $ (16.7) $ (2.7) $ (9.7) $ (12.4)
Effective Tax Rate(1) 14.1 % 20.8 % 51.9 % 22.7 %
(1) Rates may not recalculate from figures presented herein due to rounding
14
Nine Months Ended September 30,
2021 2020
GAAP
Results
Special
Items
Adjusted
Results
GAAP
Results
Special
Items
Adjusted
Results
$ 253.5 $ 36.5 $ 290.0 $ 81.6 $ 62.0 $ 143.6
Income tax expense - GAAP (51.8) — (51.8) (22.5) — (22.5)
Income tax impact of special items (Attachment 3) — (8.9) (8.9) — (15.4) (15.4)
Tax adjustments (Attachment 3) — (1.6) (1.6) — 4.9 4.9
Income tax (expense) benefit $ (51.8) $ (10.5) $ (62.3) $ (22.5) $ (10.5) $ (33.0)
Effective Tax Rate(1) 20.5 % 21.5 % 27.6 % 23.0 %
(1) Rates may not recalculate from figures presented herein due to rounding
The following pro forma adjustments are referenced by management to provide comparable business performance by
incorporating the Clariant Masterbatch business in periods prior to the acquisition date (July 1, 2020).
https://www.avient.com/sites/default/files/2022-08/Environmental Stress Cracking Resistance _ESCR_ Design Guide %281%29.pdf
Increased stresses during
processing localize in areas of changing geometry
due to non-uniform flow and differential cooling
rates.
INTRODUCTION
PART DESIGN GUIDELINES
WALL THICKNESS
Uniform wall thickness will achieve a uniform
cooling, fill, and shrink rate.
Figure 8 illustrates the recommended rib design
guidelines.
https://www.avient.com/sites/default/files/2023-11/AVNT Q3 2023 Earnings Press Release.pdf
The company also noted that it had paid down $100 million of debt and refinanced its Term Loan
during the third quarter, reducing the interest rate and extending certain maturities from 2026 to
2029.
Avient will share further information regarding third quarter results and full-year guidance during
its previously scheduled webcast at 8:00 a.m.
Eastern Time on November 2, 2023.
3
Webcast Details
Avient will host a webcast on Thursday, November 2, 2023 at 8:00 a.m.
https://www.avient.com/sites/default/files/2024-08/AVNT Second Quarter Earnings Press Release.pdf
We're extremely proud to share our latest achievements in this year's report, particularly our
upgraded ratings by Ecovadis to Gold and by CDP to A-.
Webcast Details
Avient will provide additional details on its 2024 second quarter and 2024 full-year outlook
during its webcast scheduled for 8:00 a.m.
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.
6
Investor Relations Contact:
Giuseppe (Joe) Di Salvo
Vice President, Treasurer and Investor Relations
Avient Corporation
+1 440-930-1921
giuseppe.disalvo@avient.com
Media Contact:
Kyle G.
https://www.avient.com/sites/default/files/2024-03/Modular Wall Construction_Case Study Snapshot.pdf
RESIDENTIAL BUILDING
MANUFACTURER
M O D U L A R W A L L C O N S T R U C T I O N
• Technical expertise to provide a custom composite panel
that meets performance requirements
• High strength-to-weight ratio compared to incumbent
materials
• High impact resistance, durability, and structural integrity
• On-site technical support with product
development, including rigorous material
sampling and testing
• Custom-formulated panel structures
meeting impact and lightweight
requirements
• Technical capabilities to provide a solution
meeting residential fire testing
Polystrand™ Thermoplastic Composite Panels
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2024-04/Adventure Camping_Case Study Snapshot_v3.pdf
ADVENTURE CAMPER
MANUFACTURER
W A L L & F L O O R P A N E L S
• Ability to customize the face sheet structure, core material,
and thickness to meet performance requirements
• Lightweight, high strength-to-weight ratio compared to
wood and aluminum
• UV, chemical, and moisture resistant
• Custom formulated the panel construction to meet
lightweight, durability, and insulation requirements
• Avient engineering team provided on-going
material sampling and technical support
throughout the development cycle
• Ensured the face sheet structure provided a
smooth surface finish and good adherence to
paint or aluminum fixtures
Polystrand™ Thermoplastic Composite
Sandwich Panels
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2023-08/Complet - Aftermarket Motor Mount - case study snapshot.pdf
AFTERMARKET PARTS
MANUFACTURER
M O T O R M O U N T
• Reduced part weight with retained performance
• High strength
• Corrosion resistance
• Fatigue resistance
• Facilitated lightweighting with a long glass fiber
PA66 composite that matched the performance of
the incumbent metal part
• Met strength and corrosion requirements while
achieving cost savings and reduced processing
steps versus a die cast aluminum part
• Relieved performance fears with mold flow
analysis and hands-on technology support
• Sampled quickly to accelerate speed to market
KEY REQUIREMENTS
METAL REPLACEMENT
LEARN MORE
WHY AVIENT?
https://www.avient.com/sites/default/files/2023-05/Nymax - Utility Box - Application Snapshot.pdf
LEARN MORE
INDUSTRIAL
HOUSING OEM
U T I L I T Y B O X S T I F F E N E R
• Meet material stiffness requirement of 12,000 MPa flex
modulus
• Stable raw material supply
• Formulated a solution that meets economic
and mechanical property requirements
• Quickly sampled and qualified the new
material at multiple facilities
• Enabled manufacturing at scale by using
packaging that minimized moisture uptake
during transit and storage
• Provided a stable supply of post-industrial
recycled (PIR) PA66 to offset prime PA66
Nymax™ REC Glass-Filled Formulation
KEY REQUIREMENTS
WHY AVIENT?