https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Gabelli%2520%2526%2520Co%2520Specialty%2520Chemicals%2520Conference.pdf
Use of Non-GAAP Measures
4POLYONE CORPORATION
FORMULATION
EXPERTISE SERVICE INNOVATION
Expertise in
Polymer
Materials,
Services and
OEMs
Brand Owners
Processers
Assemblers
IQ Design Labs
InVisiOSM Color
Services
LSS Customer
First
Specialty products & services driving customer value
What We Do
5POLYONE CORPORATION
PolyOne At a Glance
2017 Revenue – $3.2 billion
Performance
Products &
Solutions
21%
PolyOne
Distribution
34%
Specialty
Engineered
Materials
19%
Color
Additives
& Inks
26%
United
States
59%
Europe
14%
Latin
9%
8%
10%
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
$2.06
$2.21
2009 2010 2011 2012 2013 2014 2015 2016* 2017
18%
11%
11% Industrial
16%
Building &
Construction
Wire &
Cable 9%
Electrical &
Electronics
6%
Appliance
5%
*Recast for DSS in discontinued operations
6POLYONE CORPORATION
43%
76%
0%
20%
40%
60%
80%
100%
2005 2010 2017
%
o
f O
pe
ra
tin
g
In
co
m
e*
*Operating Income excludes corporate charges and special items
Specialty OI $5M $87M $280M
JV’s Performance Products & Solutions
Specialty MixDistribution
Mix Shift Highlights Specialty Transformation
Distribution and Contract
Manufacturing Businesses
7POLYONE CORPORATION
Consistently Deliver Double Digit Annual EPS Growth
*ROIC is defined as TTM adjusted OI after tax divided by the sum of average debt and equity less cash over a 5 quarter period
Proof of Performance
2020 Platinum Vision
12 - 14%
6.5 – 7.5%
15%
2006 2017 2020
“Where we were” “Where we are” Platinum Vision
ROIC* 5.0% 14.0%
Color, Additives & Inks 1.7% 15.5%
Specialty Engineered Materials 1.1% 12.5%
Performance Products & Solutions 5.5% 10.7%
Distribution 2.6% 6.3%
8POLYONE CORPORATION
$50
$116
$0
$40
$80
$120
$160
$200
2012 2014 2016 2018
10.8%
11.3%
10.0%
11.0%
12.0%
13.0%
14.0%
15.0%
2012 2014 2016 2017 2020
*ROIC is defined as TTM adjusted OI after tax divided by the sum of average debt and equity less cash over a 5 quarter period
Free Cash Flow and Improving Returns
Free Cash Flow (in millions) ROIC*
$200 - $220
14.0%
$143
12.9%
15.0%
9POLYONE CORPORATION
$767M
Returning Cash to Shareholders
$0
$150
$300
$450
$600
$750
2011 2012 2013 2014 2015 2016 2017
Since 2011, we have returned over $950 million to shareholders
$767M
Cumulative Share Repurchases (in millions)
$0.16
$0.20
$0.24
$0.32
$0.40
$0.48
$0.58
$0.70
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
3-Year Dividend Plan
Increasing Annual Dividend
10POLYONE CORPORATION
Expanding our sales,
marketing, and
technical capabilities
Investing in
operational and LSS
initiatives
~60 - 70% of capital
expenditures fund
growth initiatives
Organic
Growth
Acquisitions
Share
Repurchases
Dividends
Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Growth synergies
Adjacent material
solutions
Repurchased 2.0
million shares
in 2017
Repurchased 20.8
million shares
since early 2013
6.5 million shares
are available for
repurchase under
the current
authorization
Increased annual
dividend by 30% to
$0.70 per share,
representing the
eighth consecutive
year of dividend
growth
Expect to increase
annual dividend 60%
or more cumulatively
over next three years
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
11POLYONE CORPORATION
*Specialty Platform revenue from products introduced in last five years
Vitality Index Progression*
38%
Target ≥ 35%
Innovation Drives Earnings Growth
$20
$52
Research & Development Spend
($ millions)
Total Specialty Addressable Market of over $2.6 Billion
(10 Projects) (10 Projects)
($500 million)
(19 Projects)
($1.4 billion)
Innovation Pipeline Potential
Frame
Opportunity
Prototype Scale-up and
Test Market
Commercial
Launch
$500 Million $1.4 Billion $700 Million
Phase 5Phase 4Phase 3Phase 2Phase 1
Build Business
Case
12POLYONE CORPORATION
Key Innovation Growth Platforms
Composites
Barrier Additive
Technology
Fiber Colorants
Flame Retardant
Polymers
Increasing regulatory drive for halogen replacements
$400m addressable market
Drive to prevent oxygen, light and UV rays from affecting
contents in PET packaging, extending shelf life
$200m addressable market
60% of world fiber consumption is synthetic, need to
simplify manufacturing and eliminate waste
$300m addressable market
Polymer formulation and process engineering create a
pipeline for next generation materials
Drive to replace aluminum and steel with plastics without
compromising on strength
Total Sales
($millions)
13POLYONE CORPORATION
Providing LSS services to
small/medium sized customers –
have trained over 30 customers
in LSS methodology
Providing Industrial design and
color services to small/medium
sized customers
On time delivery above 95%
Strengthening Relationships:
Customer First Through World-Class Service
14POLYONE CORPORATION
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 reinvestment for growth while returning cash to shareholders
Strong and proven management team driving growth and performance
Why Invest In PolyOne?
The New PolyOne: A Specialty Growth Company
Segment Highlights
16POLYONE CORPORATION
1.7%
4.6% 5.1% 5.5%
7.2% 8.1%
9.7%
12.2%
14.7%
16.7%
16.0%
2017 Revenue: $0.9 Billion
United
46%
31%
Asia 15%
Latin
South
(27%)
(14%)
(10%)
Textiles
(12%)
(8%)
15.5%
Color, Additives & Inks
17POLYONE CORPORATION
1.1% 1.3%
3.4%
5.1%
9.6%
8.0% 8.6% 9.3%
12.1%
14.7%
United
48%
28%
22%
(20%)
(19%)
Electrical & Electronics
(15%)
(13%)
(11%)
12.5%
2017 Revenue: $0.6 Billion Operating Income % of Sales
14.3%
Specialty Engineered Materials
18POLYONE CORPORATION
5.5%
6.9%
3.8%
3.6%
5.5%
4.3%
6.3%
7.2% 7.7%
8.3%
12-14%
10.7%
11.1%
United
77%
16% Latin
5%
Building & Construction
(30%)
(16%)
(15%)
(18%)
2017 Revenue: $0.7 Billion Operating Income % of Sales
Performance Products & Solutions
19POLYONE CORPORATION
23%
22%
18%
15% Appliance
7%
E & E
6%
B & C
3%
W & C
38%
ROIC*
2.6% 3.0% 3.5%
4.6%
5.6%
6.4% 5.9% 6.1%
6.6% 6.5 - 7.5%6.3%
*After-Tax ROIC
6.4%
2017 Revenue: $1.2 Billion Key Suppliers
4.0%
Distribution
http://www.avient.com/Pages/VariationRoot.aspx
http://www.avient.com/Pages/VariationRoot.aspx
Target End Markets &
Application Examples
21POLYONE CORPORATION
Thermally Conductive
Chemical Resistant
Polymer Colorants
Elastomeric Grips and Handles
Structural Composites
Antimicrobial Technologies
Anti-Counterfeiting
Target End Markets… Healthcare
Catheter Technologies
22POLYONE CORPORATION
Under-hood Components
Target End Markets… Automotive
Interior Structural Components
Sound & Vibration Management
Roof Systems
Air Management
Electronics and Cameras
Lighting
Exterior / Interior Trim
Braces & Brackets
Fasteners
Seals & Flaps
23POLYONE CORPORATION
Target End Markets… Consumer
Thermally Conductive
Components
Polymer Colorants
Elastomeric Grips and
Handles
Structural Composite
Components
24POLYONE CORPORATION
Oxygen Scavenger
Laser Marking Additives
Antistatic Technologies
UV Light Barrier Technologies
Cap & Closure Colorants
Process Optimization
Antioxidant Technologies
Density Modified Technologies
Target End Markets… Packaging
25POLYONE CORPORATION
Impart weight, sound and
metallic finish to caps and
closures for cosmetics and
spirits applications
Elevate quality and prestige
perceptions among high-end
consumers
Eliminate time and cost
associated with secondary
operations and assembly
Luxury Packaging
GravitechTM Density Modified Polymers
26POLYONE CORPORATION
Optimize Color Usage
OnColorTM Super Concentrates
Eliminate costs by increasing
pigment density
Enhance color performance
without altering form and
formulation
Increasing design capabilities
by reducing weight and layer
thickness
27POLYONE CORPORATION
Combat Bacteria Formation
WithStandTM Antimicrobial Technology
Inhibit microbial growth on
polymer surfaces
Enhance value or products
and devices
Highly versatile concentrate
with the ability to be
incorporated into a wide
variety of products
28POLYONE CORPORATION
Medical Device Housings
Chemically Resistant Engineered Polymers
Durable, long-lasting products
stand up to the most
aggressive disinfectants
Minimize environmental
stress cracking and
discoloration
One of the broadest medically
approved polymer and
colorant portfolios
29POLYONE CORPORATION
Color & Design Services
Greater control of color
development and supply chain
Work across entire design
process from concept to
commercialization
Inspire creativity in the use of
polymer materials, colors, and
effects
Innovative brand differentiation
Faster development timelines
30POLYONE CORPORATION
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
31POLYONE CORPORATION
ColorMatrix Fiber Colorant
Proprietary advanced liquid color
formulations and equipment
enable greater efficiency and
productivity
Eliminates aqueous dyeing and
its associated wastewater
treatment
Solid Color Concentrates
Extrusion-spun fibers colored via
solid masterbatch
Fiber Colorants
32POLYONE CORPORATION
Smart Home Devices
ResilienceTM Vinyl Solutions
High flame retardancy to meet
strict UL standards
Greater processing and design
flexibility
Specialized additives provide
long term color stability
Diffusive lens materials improve
light dispersion
1
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(Dollars in millions, except per share data)
Senior management uses comparisons of adjusted net income from continuing operations attributable to PolyOne common shareholders, adjusted earnings per share (EPS)
attributable to PolyOne common shareholders and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to assess performance and allocate resources
because senior management believes that these measures are useful in understanding current profitability levels and that current levels may serve as a base for future performance.
https://www.avient.com/sites/default/files/2022-05/Avient_ALL_Policies_2022_0.pdf
Bob Patterson
Chairman, President, and CEO
February 2, 2022
SECURITY POLICY
Avient Corporation places a high priority on protecting the security of our
people, our buildings and equipment, and our proprietary information,
technology and systems.
https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202012%2520-%2520Welcome%2520and%2520Introduction.pdf
Newlin
Page 6
Today’s Objectives
• Clear understanding of our mix
improvement strategy
• Instill confidence in PolyOne as a
growth companygrowth company
• Provide exposure and build relationships
with our exceptional management team
Unveiling of 2015 Performance Targets
Page 7
• Geon and M.A.
https://www.avient.com/sites/default/files/2021-06/plastisol-storage-handling-technical-bulletin.pdf
Large temperature shifts
in the plastisol should be avoided, as they can lead
to condensation and moisture build-up.
https://www.avient.com/sites/default/files/2022-02/Additives and Colorants for PP-R Pipe Systems Application Bulletin.pdf
Additives and Colorants
for PP-R and PP-RCT Pipe Systems
Polypropylene-random grades (PP-R and PP-
RCT) are increasingly used for hot and cold water
supply pipe systems in civil and public buildings.
https://www.avient.com/sites/default/files/2022-06/CAI Animal Free Additives Product Bulletin.pdf
Cesa™ Stat Additives & OnCap™ Anti-static Additives
Static charges that build up on the surface of plastic
products can attract dust and dirt, cause sheets and
film to cling, and cause stacked products to stick
together.
https://www.avient.com/sites/default/files/2024-02/Fiber-Line Braiding Product Bulletin.pdf
Fahrenheitlaan 8
9207 HE Drachten
The Netherlands
+31(0) 58 216 7599
European Manufacturing
Operations
Fiber-Line International
Unit 1B, Churnet Park,
James Brindley Road
Leek, Staffordshire, ST13 8YH
Asia Pacific Operations &
Sales Office
Fiber-Line International
Building 9, No. 8 Lanxiang road,
Shimoxi Garden, Wujin Area
Changzhou, Jiangsu, China, 213145
+86(0)519-8885 7566
https://www.avient.com/sites/default/files/2021-05/avient-responsible-care-ehs-s-policies-2021.pdf
Bob Patterson
Chairman, President, and CEO
March 12, 2021
SECURITY POLICY
Avient Corporation places a high priority on protecting the security of our
people, our buildings and equipment, and our proprietary information,
technology and systems.
https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202012%2520-%2520Global%2520Color%252C%2520Additives%252C%2520and%2520Inks.pdf
Van Hulle
Page 53
United States
33%
47%
Canada
Asia
12%
Latin America
Eastern
2%
2011 Revenue: $0.7 Billion*2011 Revenue: $0.7 Billion* SolutionsSolutions
At a Glance
Building &
Construction
11%
Wire & Cable
15%
Consumer
Packaging
36%
Industrial
10%
Misc.
7%
HealthCare
3%
Transportation
Textiles
Canada
1%
Latin America
5%
2011 Revenue by Industry Segment*2011 Revenue by Industry Segment*
*Pro forma for the acquisition of ColorMatrix
Expanding ProfitsExpanding Profits
1.7%
4.6%
5.1% 5.5%
7.1%
9.6%
12-16%
2006 2007 2008 2009 2010 2011PF 2015
Operating Income % of Sales
Target
Page 54
Value Proposition
• GCAI is a global leader enabling OEMs and converters to
profitably expand their business with customized color and
additive solutions
Transformation Highlights
• Mix improvement and value-based selling has
Value Proposition and Transformation Highlights
• Mix improvement and value-based selling has
driven nearly 800 basis points increase in
operating margin since 2006
• 2011 acquisition of ColorMatrix accelerates
innovation pipeline and expansion into
new markets
> $12B Addressable Market
Page 55
• Unbiased, solution-based culture selling value
�Customer-centric approach
� Economic value impact documented for customers
• Complete package, product range and
service offering
�Custom solutions for customers’ unique requirements
Key Differentiators
�Custom solutions for customers’ unique requirements
� Industry-leading service offering
• Coordinated global infrastructure
�Consistency in product and
customer service
� Supply-chain reliability
Page 56
From Volume
Commodity white dominated mix
To Value
Focus on specialty color
Global Film Customer
Volume Revenue Gross Margin $
Mix Transformation – Executing the Strategy
2010 2011 2010 2011 2010 2011
Page 57
Global Packaging Customer
Volume Sales Gross Margin $
From Volume
Commodity white dominated mix
To Value
Focus on specialty color
Mix Transformation – Executing the Strategy
2010 2011 2010 2011 2010 2011
Page 58
• OnColor™ HC Plus
� Applications: Medical devices
� Customer benefits: Brand enhancement, expanded market
opportunities, speed-to-market
• WithStand™ Antimicrobial Solutions
� Applications: Healthcare devices, appliances, kitchen utensils
Key Innovations
� Applications: Healthcare devices, appliances, kitchen utensils
and surfaces, children’s toys
� Customer benefits: Expanded market opportunities, extended
product life
• OnCap™ Antifog
� Applications: Food packaging
� Customer benefits: Extended shelf life, improved product
aesthetics, production efficiencies
Page 59
• $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
Market Opportunity
Shelf-life extension
Greater product
consistency
Weight reduction
Performance Additives
the environment
Leading Global Supplier of Additives In Fast Growing PET Market
consistency
Recyclability and
reduced carbon
footprint
Color and special
effects
Enhanced product
aesthetics
High heat resistance
4% 4%
8%
9% 9%
10%
11%
14%
Western
North
America
South
America
MEA Easter
Asia
Pacific
China India
PET 2008-13P CAGR
Page 60
HyGuardTM Oxygen Barrier System
• Applications: Beverage containers, food packaging
• Function: Active scavenging system for
• Function: Active scavenging system for
oxygen-barrier improvement
• Customer benefits: Extended shelf-life,
light-weight, recyclable
Page 61
ExceliteTM Foaming Agent
• Applications: Vinyl sheet for digital printing
• Function: Chemical foaming agent for
weight reduction
• Customer benefits: Increased product
quality, operational efficiencies
Page 62
Joule RHBTM Advanced Reheat Technology
• Applications: PET containers
• Function: Infra-red absorber for improved
• Function: Infra-red absorber for improved
• Customer benefits: Sustainability,
operational and energy savings
reheating efficiency
Page 63
• Accelerate customer development
pipeline with OnColor™ HC Plus
• Provide solutions addressing infection
concerns in healthcare facilities
Areas of Focus
$8.7
$20.0
Healthcare
2006 2011PFconcerns in healthcare facilities
• Help customers expand into new
markets with HyGuard™ technology
• Extend food shelf life and consumer
appeal with OnCap™ Anti-Fog $130.2
$268.0
2006 2011PF
Packaging
2006 2011PF
(Revenue in $ millions)
2006 2011PF
2006 2011PF
Page 64
Critical Imperatives and 2015 Goal
Critical Imperatives
• Integrate and leverage ColorMatrix technology and
customer relationships
• Identify and focus on specialty applications within our
target markets
• Accelerate global expansion and profitability
improvements in emerging markets, leveraging
success in U.S. and Europe
2015 Goal
• 12 - 16% return on sales
Page 65
Page 66
https://www.avient.com/sites/default/files/2022-09/Smartbatch Blow Molding Brochure.pdf
Consider these solutions:
• Anti-stat to prevent dust build up
• UV blockers or stabilizers to protect package
contents
• Anti-microbials for limiting microbe
development
• Scratch and mar technology to preserve surface
finishes
• Impact modifiers that increase flexibility
and durability
Reduce Risk with Regulatory Support
We know that regulatory compliance requirements
are constantly changing.