https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520–%2520Goldman%2520Sachs%2520Conference%25202015.pdf
PolyOne Corporation Page 1
PolyOne Investor Presentation
Goldman Sachs Basic Materials Conference
May 2015
PolyOne Corporation Page 2
Forward-Looking Statements
In this presentation, statements that are not reported financial results or other historical information are “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995.
PolyOne Corporation Page 3
Use of Non-GAAP Measures
This presentation includes the use of both GAAP (generally accepted accounting
principles) and non-GAAP financial measures.
S&P 500
PolyOne Corporation Page 9
2006 Q1 2015 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 16.2% 20%+
Global Specialty Engineered
Materials 1.1% 16.3% 20%+
Designed Structures & Solutions 1.4% (2012) 2.7% 12 – 14%
Performance Products &
Solutions 5.5% 6.5% 10 – 12%
Distribution 2.6% 5.9% 6.5 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 69% 80%+
3) ROIC 5.0% 11.4% 15%
4) Adjusted EPS Growth N/A
22 Consecutive
Quarters of
EPS Growth
Double Digit
Expansion
Proof of Performance & 2020 Goals
PolyOne Corporation Page 10
Platinum Vision: Pathway to Accelerated Growth
Organic
Sales Growth
Margin
Expansion
Share
Repurchases
Acquisitions
PolyOne Corporation Page 11
Innovation Drives Earnings Growth
*Percentage of Specialty Platform revenue from products introduced in last five years
$20
$53
2006 2014
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
27%
2006 2014
Specialty Platform
Gross Margin %
20%
44%
2006 2014
Specialty Vitality Index Target ≥ 35%
PolyOne Corporation Page 12
Megatrends Aligned with Key End Markets
Decreasing
Dependence
on Fossil
Fuels
Protecting
the
Environment
Improving
Health and
Wellness
Megatrend End Markets
Globalizing
and
Localizing
Health &
Wellness
Transportation
Packaging
Consumer
PolyOne Corporation Page 13
Prototype Frame
Opportunity
Scale-up &
Test Market
Build
Business Case
Commercial
Launch
Phase
1
Phase
2
Phase
3
Phase
4
Phase
5
6
9
7
3
5
12
5 3 2
8
4
2
4
3
1
Breakthrough
Platform
Derivative
A Rich Pipeline of Opportunity
Number of Projects 14 8 18 12 22 74
Addressable Market
($ millions) $700 $600 $600 $1,900
PolyOne Corporation Page 14
60%
98%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 Q1 2015
Pension Funding**
As of March 31, 2015
Debt Maturities & Pension Funding
Net Debt / EBITDA* = 2.1x
$49
$317
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Debt Maturities
As of March 31, 2015
($ millions)
Coupon Rate: 7.500% 7.375% 5.250%
** includes US-qualified pension plans only *TTM 3/31/2015
PolyOne Corporation Page 15
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 $0.24
$0.32
$0.40
$0.10
$0.20
$0.30
$0.40
$0.50
2011 2012 2013 2014 2015
Annual Dividend
Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material
solutions
Repurchased over
500k shares in Q1
2015
Repurchased 11.8
million shares since
early 2013
8.2 million shares are
available for
repurchase under the
current authorization
PolyOne Corporation Page 16
PolyOne Core Values
Innovation
Collaboration
Excellence
PolyOne Corporation Page 17
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
https://www.avient.com/resources/safety-data-sheets?page=6297
ATHP2010 EF POLY LEMON YELLOW
ATHP3006 EF POLY LB BRITE RED
ATHP3010 EF POLY TRU RED*
https://www.avient.com/sites/default/files/resources/Wells%2520Fargo%2520Conference%2520-%2520IR%2520Presentation%25205-6-2015%2520-%2520wNon%2520GAAP%2520and%2520Appendix.pdf
PolyOne Corporation Page 1
PolyOne Investor Presentation
Wells Fargo Industrial & Construction Conference
May 2015
PolyOne Corporation Page 2
Forward-Looking Statements
In this presentation, statements that are not reported financial results or other historical information are “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995.
PolyOne Corporation Page 3
Use of Non-GAAP Measures
This presentation includes the use of both GAAP (generally accepted accounting
principles) and non-GAAP financial measures in certain cases throughout this
presentation.
S&P 500
PolyOne Corporation Page 9
2006 Q1 2015 2015 Target
“Where we were” “Where we are” (Est. in 2012)
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 16.2% 12 – 16%
Global Specialty Engineered
Materials 1.1% 16.3% 12 – 16%
Designed Structures & Solutions 1.4% (2012) 2.7% 8 – 10%
Performance Products &
Solutions 5.5% 6.5% 9 – 12%
Distribution 2.6% 5.9% 6 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 69% 65 – 75%
3) ROIC 5.0% 11.4% 15%
4) Adjusted EPS Growth N/A 5% Double Digit
Expansion
Proof of Performance & 2015 Goals
PolyOne Corporation Page 10
Innovation Drives Earnings Growth
*Percentage of Specialty Platform revenue from products introduced in last five years
$20
$53
2006 2014
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
27%
2006 2014
Specialty Platform
Gross Margin %
20%
44%
2006 2014
Specialty Vitality Index Target ≥ 35%
PolyOne Corporation Page 11
Megatrends Aligned with Key End Markets
Decreasing
Dependence
on Fossil
Fuels
Protecting
the
Environment
Improving
Health and
Wellness
Megatrend End Markets
Globalizing
and
Localizing
Health &
Wellness
Transportation
Packaging
Consumer
PolyOne Corporation Page 12
Prototype Frame
Opportunity
Scale-up &
Test Market
Build
Business Case
Commercial
Launch
Phase
1
Phase
2
Phase
3
Phase
4
Phase
5
4
11
5
10
6
9
3 4 2
15
9
1
10
4
Breakthrough
Platform
Derivative
A Rich Pipeline of Opportunity
Number of Projects 25 14 19 17 18 93
Addressable Market
($ millions) $800 $450 $450 $1,700
PolyOne Corporation Page 13
60%
98%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 Q1 2015
Pension Funding**
As of March 31, 2015
Debt Maturities & Pension Funding – 3/31/15
Net Debt / EBITDA* = 2.1x
$49
$317
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Debt Maturities
As of March 31, 2015
($ millions)
Coupon Rate: 7.500% 7.375% 5.250%
** includes US-qualified pension plans only *TTM 3/31/2015
PolyOne Corporation Page 14
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 $0.24
$0.32
$0.40
$0.10
$0.20
$0.30
$0.40
$0.50
2011 2012 2013 2014 2015
Annual Dividend
Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material
solutions
Repurchased over
500k shares in Q1
2015
Repurchased 11.8
million shares since
early 2013
8.2 million shares are
available for
repurchase under the
current authorization
PolyOne Corporation Page 15
PolyOne Core Values
Innovation
Collaboration
Excellence
PolyOne Corporation Page 16
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
https://www.avient.com/company/policies-and-governance
Corporate Documents
Corporate Literature
PolyOne Tekno Polimer Mühendislik Plastikleri Sanayi ve Ticaret Anonim Şirketi (Turkish Legal Entity Information)
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Goldman%2520Sachs%2520Conference%2520-%2520November%25202015.pdf
Slide 1
PolyOne Corporation Page 1
PolyOne Investor Presentation
Goldman Sachs 2015 US Emerging/
SMID Cap Growth Conference
November 2015
PolyOne Corporation Page 2
Forward-Looking Statements
In this presentation, statements that are not reported financial results or other historical information are “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995.
PolyOne Corporation Page 3
Use of Non-GAAP Measures
This presentation includes the use of both GAAP (generally accepted accounting
principles) and non-GAAP financial measures.
2) Tax adjustments include the net tax expense/benefit from one-time income tax items, the set-up or reversal of uncertain tax position reserves and deferred income tax valuations allowance adjustments.
https://www.avient.com/sites/default/files/resources/PolyOne%25202014%2520Annual%2520Report.pdf
POLYONE CORPORATION 9
ITEM 1A.
POLYONE CORPORATION 17
ITEM 3.
POLYONE CORPORATION 21
ITEM 6.
https://www.avient.com/sites/default/files/resources/NOVEL_THERMOPLASTIC_ELASTOMERS_FOR_UNIVERSAL_OVERMOLDING_ON_DISSIMILAR_THERMOPLASTICS.pdf
NOVEL THERMOPLASTIC ELASTOMERS FOR UNIVERSAL OVERMOLDING ON
DISSIMILAR THERMOPLASTICS
Liang Xu, Sehyun Kim, Rajesh Varma and Krishna Venkataswamy
GLS Corporation
833 Ridgeview Drive
McHenry, IL 60050, USA
Abstract
Overmolding thermoplastic elastomers (TPEs) onto rigid thermoplastics has been an explosive trend
in the last decade.
Rigid thermoplastics include both commodity thermoplastics
and engineering thermoplastics, such as polypropylene (PP), polystyrene (PS), high impact polystyrene
(HIPS), polycarbonate (PC), acrynitrile-butadiene-styrene (ABS), poly(ethylene terephthalate) (PET),
poly(methylmethacrylate) (PMMA), styrene acrylonitrile (SAN), poly(phenylene oxide) (PPO),
polyamide (PA), PC/ABS blend and PPO/PS blend etc..
Thus, one of the
limitations for most of the existing TPE overmolding technology is that one needs to develop and use
different TPE materials for different substrates.
https://www.avient.com/sites/default/files/resources/PolyOne%25202015%2520Annual%2520Report.pdf
We call it “One
PolyOne,” and it’s a theme and shift we’ve been pursuing since
2014.
POLYONE CORPORATION 21
ITEM 7.
POLYONE CORPORATION 39
ITEM 8.
https://www.avient.com/news/new-details-specialty-sustainable-technologies-and-services-avient-featured-k-2022
At K 2016, Avient exhibited under its former name, PolyOne.
Avient Corporation (NYSE: AVNT) provides specialized and sustainable material solutions that transform customer challenges into opportunities, bringing new products to life for a better world.
Media contact
Nicole DeChant
Avient Corporation
nicole.dechant@avient.com
https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202018.pdf
PolyOne Corporation 3
FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE
IMPLIED BY THESE FORWARD-LOOKING STATEMENTS INCLUDE, BUT ARE NOT LIMITED TO:
USE OF
NON-GAAP
MEASURES
PolyOne Corporation 4
• This presentation includes the use of both GAAP (generally accepted
accounting principles) and non-GAAP financial measures.
PolyOne Corporation 91
S P E E D T O M A R K E T
From concept to production
99.9%
Reduction in
turnaround time
Traditional Timeline
up to 24 weeks
PolyOne ColorMatrix
Select™
6 hours
PolyOne Corporation 92
“Being able to create color
and produce parts in 1 day is
unheard of in this industry.
Tax adjustments include the net tax (expense) benefit from one-time income tax items, the set-up or reversal of uncertain tax position reserves and deferred income tax valuation allowance
adjustments.