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POLYONE CORPORATION 3
Use of Non-GAAP Measures
This presentation includes the use of both GAAP (generally accepted accounting
principles) and non-GAAP financial measures.
Addressable market exceeds $40 billion
Strong performance demonstrates that our strategy and execution
are working
Megatrends and emerging opportunities align with strengths
Innovation and services provide differentiation, incremental pricing
power and competitive advantage
Strategic balance between reinvestment for growth and returning
cash to shareholders
Strong and proven management team driving growth and
performance
14 POLYONE CORPORATION
Segment Highlights
POLYONE CORPORATION 15
2016 Revenue: $0.8 Billion
At a Glance: Color, Additives & Inks
Key Applications
2016 Revenue by Industry Expanding Profits
1.7%
4.6% 5.1% 5.5%
7.2% 8.1%
9.7%
12.2%
14.7%
16.7%
16.0%
20%+
16.6%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q
2017
2020
Operating Income % of Sales
United
States
45%
Europe
33%
Asia
15% Latin
America
5%
Canada
2%
Packaging
30%
Industrial
15%
W & C
10%
B & C
10% Textiles
9%
Transportation
9%
Consumer
7%
Healthcare
6%
Appliance
2%
E & E
2%
Platinum
Vision
POLYONE CORPORATION 16
2016 Revenue: $0.6 Billion
At a Glance: Specialty Engineered Materials
2016 Revenue by Industry Expanding Profits
1.1% 1.3%
3.4%
5.1%
9.6%
8.0% 8.6% 9.3%
12.1%
14.7%
14.3%
20%+
14.8%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q
2017
2020
Operating Income % of Sales
Consumer
19% Transportation
19%
E & E
15%
W & C
15%
Healthcare
11%
Industrial
8%
Packaging
7%
Appliance
3%
B & C
3%
United
States
51%
Europe
27%
Asia
20%
Canada
2%
Key Applications
Platinum
Vision
POLYONE CORPORATION 17
2016 Revenue: $0.4 Billion
At a Glance: Designed Structures & Solutions
2016 Revenue by Industry 2020 Platinum Vision
Transportation
27%
Industrial
21%
Packaging
21%
B & C
11% Healthcare
8%
Consumer
8%
Appliance
3%
E & E
1%
Key Applications
United
States
95%
Canada
5%
Drive operational efficiency with LSS
projects and customer first mentality
Recapture customers by leveraging
PolyOne’s commercial excellence and
service offerings
2020 Operating Margin: 8 – 10%
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Adjusted EPS attributable to PolyOne common shareholders is calculated as follows:
2009* 2010 2011 2012 2013 2014 2015 2016
Net income attributable to PolyOne common shareholders $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6 $ 165.2
Joint venture equity earnings, after tax (19.0) (14.7) (3.7) — — — — —
Special items, before tax(1) (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 35.5
Special items, tax adjustments(1) (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (20.7)
Adjusted net income attributable to PolyOne common shareholders $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 180.0
Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6
Adjusted EPS attributable to PolyOne common shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.13
Adjusted operating income is calculated as follows:
2006* 2016
Operating income $ 233.6 $ 281.9
Special items (1) (39.1) 35.3
Joint venture equity earnings (107.0) 0.0
Adjusted operating income $ 87.5 $ 317.2
* Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principle, discontinued operations or the related resegmentation
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1.
Seller may discontinue
any Product sold hereunder at any time, unless
Buyer and Seller have otherwise agreed in
writing.
3.
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4.
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Belt & Hose Reinforcement Yarn
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5209 FPL 20 NATURAL 1
GRAY PET 3
PE GREEN HOSE
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Planet—Climate Change, Energy and Greenhouse Gas Emissions (GHG)
Air Quality
Air emissions of the following pollutants: (1) NOX (excluding
N2O), (2) SOX, (3) volatile organic compounds (VOCs), and (4)
hazardous air pollutants (HAPs)
RT-CH-120a.1
1.
HAPs: 1.18 MT
Energy Management
(1) Total energy consumed, (2) percentage grid electricity, (3)
percentage renewable, (4) total self-generated energy RT-CH-130a.1
1.
Total energy: 1,671,768 GJ
2. % Grid electricity: 77.53%
3. % renewable: 43.71%
4. total self-generated: 3755 GJ
Water Management
(1) Total water withdrawn, (2) total water consumed, percentage of
each in regions with High or Extremely High Baseline Water Stress RT-CH-140a.1
1.
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650 WHITE LG 4
X ST-TPU-7425-1A
140775-1 EXPB6502 BLACK 2999
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TEAK 4 W/UV
87650PFX EPIC PRIMROSE 1
X ST2817-001-01
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RHC R-2.BLUE.50-1
TRIPLE A TONER 4 X DILUTED
Shipment Notification - under "Material Header" MSDS - labeled as the "Product Number" (in Section 1)
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BLUE NAVY 4
X HC 5210-0020 RS Cool Gray 1
Shipment Notification - under "Material Header" MSDS - labeled as the "Product Number" (in Section 1)
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X ET-16658-01-1 Blk
G051349 PEC DARK GREEN 4:100
Shipment Notification - under "Material Header" MSDS - labeled as the "Product Number" (in Section 1)