https://www.avient.com/sites/default/files/2024-12/Terms and Conditions of Sale for Czech Republic.pdf
Terms and Conditions (December 1, 2024)
https://www.avient.com/sites/default/files/resources/PolyOne%25202018%2520Proxy%2520Statement.PDF
Outstanding Equity Awards at 2017 Fiscal Year-End
Option
Exercise
Price
Option
Expiration
Date
Market
Value of
Shares or
Units of
Stock That
Have Not
Vested
(h)
Equity Incentive
Plan Awards:
Market or Payout
Value of Unearned
Shares, Units or
Other Rights that
Have Not Vested
(j)
- - 25,039 (1) 1,089,197 -
- - 35,796 (2) 1,557,126 -
- - 39,630 (3) 1,723,905 -
- - - 52,524 (6) 2,284,794
- - - 52,524 (6) 2,284,794
30,500 (7) 14.81 2/16/2021 - -
48,800 (8) 14.61 2/14/2022 - -
30,700 (9) 23.08 2/15/2023 - -
20,500 (10) 35.07 2/11/2024 - -
44,467 (11) 22,233 (11) 38.27 2/4/2025 - -
35,067 (12) 70,133 (12) 24.98 2/10/2026 - -
118,200 (13) 34.10 2/15/2027 - -
- - 6,996 (1) 304,326 -
- - 8,553 (2) 372,056 -
- - 8,272 (3) 359,832 -
17,400 (10) 35.07 2/11/2024 - -
12,467 (11) 6,233 (11) 38.27 2/4/2025 - -
8,384 (12) 16,766 (12) 24.98 2/10/2026 - -
24,650 (13) 34.10 2/15/2027 - -
- - 2,718 (1) 118,233 -
- - 3,558 (2) 154,773 -
3,909 (3) 170,042
- - 10,073 (4) 438,176 -
2,600 (8) 14.61 2/14/2022 - -
2,867 (9) 23.08 2/15/2023 - -
3,000 (10) 35.07 2/11/2024 - -
4,867 (11) 2,433 (11) 38.27 2/4/2025 - -
3,467 (12) 6,933 (12) 24.98 2/10/2026 - -
11,600 (13) 34.10 2/15/2027 - -
- - 3,447 (1) 149,945 -
- - 4,382 (2) 190,617 -
- - 4,467 (3) 194,315
7,800 (10) 35.07 2/11/2024 - -
6,134 (11) 3,066 (11) 38.27 2/4/2025 - -
4,300 (12) 8,600 (12) 24.98 2/10/2026 - -
13,250 (13) 34.10 2/15/2027 - -
- - 3,554 (1) 154,599 -
- - 4,639 (2) 201,797 -
- - 4,620 (3) 200,970 -
23,300 (8) 14.61 2/14/2022 - -
13,700 (9) 23.08 2/15/2023 - -
8,700 (10) 35.07 2/11/2024 - -
6,200 (11) 3,100 (11) 38.27 2/4/2025 - -
4,517 (12) 9,033 (12) 24.98 2/10/2026 - -
13,750 (13) 34.10 2/15/2027 - -
- - 3,751 (5) 163,169 -
- - 4,382 (2) 190,617 -
- - 4,213 (3) 183,266
6,600 (14) 3,300 (14) 40.19 5/15/2025 - -
4,300 (12) 8,600 (12) 24.98 2/10/2026 - -
12,450 (13) 34.10 2/15/2027 - -
- - 4,177 (1) 181,700 -
- - 5,102 (2) 221,937 -
- - 5,025 (3) 218,588 -
10,400 (10) 35.07 2/11/2024 - -
7,467 (11) 3,733 (11) 38.27 2/4/2025 - -
5,000 (12) 10,000 (12) 24.98 2/10/2026 - -
14,900 (13) 34.10 2/15/2027 - -
- - -
- - -
- - - -
- - - -
- - - -
- -
- - - -
- - - -
- -
- - -
- -
- -
- - - -
-
-
-
- -
Number of
Shares or
Units of
Stock That
Have Not
Vested
Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable
Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable
-
-
-
-
-
Option Awards
-
-
-
-
Equity Incentive
Plan Awards:
Number of
Unearned
Shares, Units or
Other Rights that
Have Not Vested
(i)
-
-
-
-
- -
-
-
-
-
- - - -
-
- - -
-
-
-
-
- - -
- - -
Stock Awards
B.C.
Patterson has remained in continuous employment with the
Company, then the remaining 50,000 performance shares shall become non-forfeitable and fully vested on May
15, 2024.
https://www.avient.com/sites/default/files/2023-11/AVNT November IR Presentation.pdf
PRIOR YEAR
$790
$710
2022 2023
$107
$112
2022 2023
Sales Adjusted EBITDA
$0.42
$0.47
2022 PF 2023
- 10% + 5% + 12%
Sales Adjusted EBITDA Adjusted EPS
16
$112
$500
$0.47
Q4 AND FULL YEAR 2023 GUIDANCE
$710
$3,130
Sales Adjusted EBITDA Adjusted EPS
17
(in millions) (in millions)
Guidance: Free Cash Flow
$180 $180
Prior Guidance Guidance
FREE CASH FLOW & INCREASED DIVIDEND
13th Consecutive Dividend Increase
0.16
0.26
0.42
0.58
0.79
0.85
0.99
1.03
2011 2013 2015 2017 2019 2021 2023 2024
S U S TAI NABI L I T Y DAY
RE CAP
SUSTAINABILITY AS A GROWTH DRIVERLONG-TERM REVENUE GROWTH DRIVERS
60%+
Key Growth
Drivers
Sustainable
Solutions
Composites, Healthcare,
Asia / LATAM
Overlap
Other
(GDP Growth)
Total Company Revenue
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%
SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH
8-12%
Long Term
Growth
50
90
2022 2030
Medical Plastics
Market Size
(in $Billions)
2020 2030
Recycled
Plastics
Virgin
Plastics
Growing Demand
for Recycled
Content
Avient Sustainable
Solutions
46
2023 2032
Global Offshore Annual
Wind Installations
(in Gigawatts)
Sources: McKinsey, Bloomberg, Grand View Research
SUSTAINABILITY TRENDS DRIVE
LONG-TERM GROWTH
21
• 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%
2006 2018 2023E Recovery Growth
Drivers
Strategic
Objective
20%+
+1%+
+3%+
ADJUSTED EBITDA MARGIN EXPANSION
22
• 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
CREATING A WORLD-CLASS
SUSTAINABLE ORGANIZATION
23
PEER COMPARISONS
AVIENT IS ASSET LIGHT
Capex / Revenue
2023E (%)
Avient Specialty
Other Specialty /
Note: Avient reflects 2023 estimated revenue of $3,130 and estimated run-rate CAPEX of $110M.
26
3.5
1.8
2.7 3.0 3.4 3.7
2.8
3.7
4.6 5.0
6.9 7.0
8.6
11.1
Av
ie
nt
PP
PM FM
C
N C
FREE CASH FLOW CONVERSION
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/sites/default/files/2020-03/Global_High_Yield_%26_Leverage_Conference %281%29.pdf
Leverage
PolyOne’s
global reach
Phase 1 Phase 2
Phase 3
18-20%
operating
margins
Invest in
commercial
resources
I N V E S T - T O - G R O W P R O O F O F P E R F O R M A N C E
PolyOne Corporation 24
Commercial
Resources
Operating
Income
($ in millions)
Operating
Margins
256
309
$36
$100
Established Acquisitions
(> 7 years)
+ 20% + 165% + 1000 bps
CLARIANT MASTERBATCH ACQUISITION DRIVES
NEXT LEVEL SPECIALTY TRANSFORMATION
ACCELER ATING GR OWTH WITH
SUSTAINABLE SOLUTIONS
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 26
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 27
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
• 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
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 28
18%
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 29
38%
Wire &
Electrical &
Electronic
18%
Building &
Wire &
Electrical &
Electronic
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 30
38% Europe
33%
22%
Europe &
Middle East
48%
23%
Color & Engineered
Clariant Masterbatch
Net Sales by Geographic Region
Europe &
Middle East
39%
21%
Pro Forma Color &
Engineered Materials
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 31
2006 - 2013
2013 – 2019
PEO PLE
PRO D U C TS PLA N ET
PER FO R M A N C E
Clariant Masterbatch
• 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
Synergies
New
2019 Total Sales $2,863 $1,150 $4,013
2019 Adjusted EBITDA $309 $130 $60 $499
% Margin 10.8% 11.3% 12.4%
2019 CapEx $68 $85
% Sales 2.4% 2.1%
2019 Free Cash Flow $161 $250
2019 Adjusted EPS $1.69 $2.22
2019 PF Adjusted EPS $1.69 $2.54
P O L Y O N E + C L A R I A N T M A S T E R B A T C H B U S I N E S S
PolyOne Corporation 32
(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 33
46%
66%
0%
40%
60%
80%
100%
2005 2010 2015 2019E PF
%
o
f
A
d
ju
st
e
d
E
B
IT
D
A
*
JV's Performance Products & Solutions Distribution Specialty
87%
* Adjusted EBITDA is EBITDA excluding corporate costs and special items
** 2019E Pro Forma for PP&S Divestiture and Clariant Masterbatch business acquisition with synergies
Specialty EBITDA $14M $117M $273M $500M
**
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 $500MM
• Target net leverage below 3.5x, 3.1x synergized
PolyOne Corporation 36
• $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 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
40%
Operational
Administrative
PolyOne Corporation 37
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
$450
$600 $624
$743
2019 2020 2021 2022 2023 2024 2025 2026
A T T R A C T I V E F I N A N C I N G S T R U C T U R E
Attractive Debt
Maturity Profile
Existing Revolver Existing Senior Notes Existing Term Loan B
New Debt
Summary
Terms on
New Debt
• $465 million of cash from the balance sheet expected to fund a portion of the purchase price
• Bridge financing for remainder fully committed from Citi, Morgan Stanley and Wells Fargo
• Permanent financing expected to include a combination of long-term debt and new equity
• The timing of the permanent financing is subject to a number of factors, including, but not limited
to, market conditions
• PolyOne is committed to preserving a strong balance sheet
– Target net leverage at close below 3.5x, excluding synergies
• Pro forma capital structure positions PolyOne with flexibility to pursue continued growth strategy
• New financing expected to have same or better covenant package than existing capital structure
• Capital structure would be “covenant lite”
Capital
Policy
• Transaction in line with PolyOne’s disciplined capital allocation policy
• Existing PolyOne dividend policy to be maintained
• Focus on deleveraging in the near term
2028+
PolyOne Corporation 38
PolyOne Corporation 37
$0.16
$0.20
$0.24
$0.32
$0.40
$0.48
$0.54
$0.70
$0.78
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Cumulative Share Repurchases
(In millions)
$0
$150
$300
$450
$600
$750
$900
2011 2012 2013 2014 2015 2016 2017 2018 2019
$917M
R E T U R N I N G C A S H T O S H A R E H O L D E R S
O V E R $ 1 . 2 B I L L I O N S I N C E 2 0 1 1
PolyOne Corporation
Increasing Annual Dividend
38
$0.81
PolyOne Corporation 39
W H Y I N V E S T I N P O L Y O N E ?
https://www.avient.com/sites/default/files/2023-06/AVNT June IR Conferences w_Non GAAP Recs.pdf
Chamber of Commerce; BEAD refers to
Broadband Equity, Access, and Deployment Program17
• Fiscal Year 2024 U.S.
https://www.avient.com/sites/default/files/2024-03/Terms and Conditions of Sale for Finland %28Finnish Translation%29.pdf
Myyntiehdot (1. huhtikuuta 2024)
https://www.avient.com/sites/default/files/2024-03/Terms and Conditions of Sale for Hungary %28Hungarian Translation%29.pdf
Dátum: 2024. április 01.
https://www.avient.com/sites/default/files/2024-12/Terms and Conditions of Sale for Czech Republic %28Czech Translation%29.pdf
Obchodní podmínky (1. prosinec 2024)
https://www.avient.com/sites/default/files/2024-12/Terms and Conditions of Sale for France.pdf
Terms and Conditions (December 1, 2024)
https://www.avient.com/sites/default/files/resources/PolyOne%2520Proxy%2520Statement%25202016.pdf
Option
Exercise
Price
Option
Expiration
Date
Market
Value of
Shares or
Units of
Stock That
Have Not
Vested
(h)
Equity Incentive Plan
Awards: Market or
Payout Value of
Unearned Shares,
Units or Other Rights
that Have Not Vested
(j)
- - 14,650 (1) 465,284 -
- - 25,724 (2) 816,994 -
- - 8,384 (3) 266,276 -
- - 24,306 (4) 771,959 -
- - - 25,724 (9) 816,994
- - - 50,991 (10) 1,619,474
- - - 50,991 (10) 1,619,474
30,500 (12) 14.81 2/16/2021 - -
48,800 (13) 14.61 2/14/2022 - -
20,467 (14) 10,233 (14) 23.08 2/15/2023 - -
6,834 (15) 6,833 (15) 6,833 (15) 35.07 2/11/2024 - -
66,700 (16) 38.27 2/4/2025 - -
- - 20,490 (5) 650,762 -
- - 7,157 (3) 227,306 -
- - 6,788 (4) 215,587 -
5,800 (15) 5,800 (15) 5,800 (15) 35.07 2/11/2024 - -
18,700 (16) 38.27 2/4/2025 - -
- - 64,981 (1) 2,063,797 -
- - 102,877 (6) 3,267,374 -
- - 37,201 (3) 1,181,504 -
91,334 (14) 45,666 (14) 23.08 2/15/2023 - -
30,334 (15) 30,333 (15) 30,333 (15) 35.07 2/11/2024 - -
- - 6,504 (1) 206,567 -
- - 4,294 (3) 136,377 -
- - 25,551 (7) 811,500 -
- - 4,052 (4) 128,692 -
- - - 25,551 (11) 811,500
9,134 (14) 4,566 (14) 23.08 2/15/2023 - -
3,467 (15) 3,467 (15) 3,466 (15) 35.07 2/11/2024 - -
- 11,200 (16) 38.27 2/4/2025 - -
- - 6,504 (1) 206,567 -
- - 3,579 (3) 113,669 -
- - 3,446 (4) 109,445 -
23,300 (13) 14.61 2/14/2022 - -
9,134 (14) 4,566 (14) 23.08 2/15/2023 - -
2,900 (15) 2,900 (15) 2,900 (15) 35.07 2/11/2024 - -
9,300 (16) 38.27 2/4/2025 - -
- - 2,769 (8) 87,943 -
- - 2,567 (8) 81,528 -
- - 1,316 (8) 41,796 -
- - 261 (8) 8,289 --
--
-J.A.
Patterson has remained in continuous employment with the
Company, then the remaining 50,000 performance shares shall become non-forfeitable and fully vested on May
15, 2024.