https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520Sidoti%2520wNonGAAP%2520Rec.pdf
Page 3
Strategy and Execution Drive Results
90%
$22
$24
PolyOne
Stock Price
50%
70%
$18
$20
$22
S&P 500 (relative performance)
30%
$12
$14
$16
S&P 500 (relative performance)
‐10%
10%
$6
$8
$10
50%
‐30%
$0
$2
$4
$
|
‐50%$0
2006 2007 2008 2009 2010 2011 2012 2013
Page 4
Four Pillar Strategy
The World’s Premier Provider of SpecializedThe World s Premier Provider of Specialized
Polymer Materials, Services & Solutions
Page 5
Spartech – Compelling Strategic Rationale
• Spartech expands PolyOne’s specialty portfolio with adjacent
technologies in attractive end markets
Bolt on acquisition with opportunity for global expansion as only Bolt‐on acquisition with opportunity for global expansion, as only
6% of Spartech’s revenues are outside of North America
• PolyOne has a proven management team with a track record of
transformational success
• Preliminary synergy estimated at $65 million run rate by end of
3year 3
Significant opportunity to expand profitability by leveraging
PolyOne’s four pillar strategy
• Substantial potential share price appreciation for all
shareholders
f f ll / $ Accretive to EPS in first full year post‐acquisition / $0.50 once
synergies realized
Page 6
Mix Shift Highlights Specialty Transformation
Old
PolyOne Transformation
100%
2015
Target
80%
In
co
m
e*
65 – 75%40%
60%
f O
pe
ra
ti
ng
34%
43% 45%
65 75%
20%
%
o
f
2%0%
2005 2008 2010 2012 2015
Specialty OI $5M $46M $87M $114M Target
*Operating Income excludes corporate charges and special items
JV's PP&S Distribution Specialty
Page 7
Proof of Performance
2007 2012 2015
“Where we were” “Where we are”
“Where we
Where we were Where we are
expect to be"
1) Operating Income %
Specialty 3.2% 9.1% 12 – 16%
PP&S 6.1% 9.0% 9 – 12%
Distribution 3.0% 6.4% 6 – 7.5%
2) Specialty Platform
sss% of Operating Income 20% 45% 65 – 75%
3) ROIC* ( ft t ) 7% 11% 15%3) ROIC* (after‐tax) 7% 11% 15%
4) Adjusted EPS Growth** N/A 4 yr CAGR = 55%
Double Digit
Expansion
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
**4 yr EPS CAGR calculated using 2012 adjusted EPS vs 2008 adjusted EPS
Page 8
Proof of Performance
Spartech Opportunity
Intermediate
PolyOne Spartech Opportunity
2006 2012 Today Goal
“Where we
were”
“Where we
are”
“Where
Spartech is”*
“Where we
can go”were are Spartech is can go
Specialty
Operating
Margin
1.5% 9.1% 2.2% 8.0% – 10.0%
Margin
Page 9
*Pro Forma results include Spartech corporate allocations for FY12 ended November 3, 2012
At a Glance
PolyOne
Europe
14%
Canada
8%
Asia
5%
Latin
America
3% Distribution
2012 Revenues: $4.2 Billion* 2012 Revenues: $4.2 Billion*
United
States
70%
14% 5%
PP&S
20%Specialty
57%
23%
70%
Appliance
5%
Building & HealthCare
Transportation
16%
Textiles
2%
1.02
1.20
$1.20
$1.40
ha
re
End Markets* EPS Growth
g
Construction
14%
Wire & Cable
8%
Consumer
8%
Packaging
17%
Industrial
11%
Misc.
6%
9%
0.27
0 21
0.79
$0.40
$0.60
$0.80
$1.00
A
dj
us
te
d
Ea
rn
in
gs
P
er
S
Electrical &
Electronics
4%
0.12
0.21 0.13
$0.00
$0.20
2006 2007 2008 2009 2010 2011 2012
Page 10
* Pro Forma includes FY2012 results for Spartech (11/03/12 YE) and Glasforms
At a Glance
Specialty
U it d
2012 Revenues: $2.4 Billion* Solutions
United
States
59%
Europe
23%
Asia
Canada
4%
Asia
9%
Latin
America
5%
Appliance
4%
Building &
C t ti
HealthCare
5%
Transportation
16%
Textiles
2%
%
o
f S
al
es
12-16%
End Markets* Expanding Profits
Construction
11%
Wire & Cable
7%
Electrical &
Electronics
Packaging
23%
Industrial
7%
Misc.
15%
1.5%
3.2%
4.3%
5.3%
8.4%
9.1%
O
pe
ra
ti
ng
In
co
m
e
%
8.0%
Electronics
4%
Consumer
6%
Page 11
2006 2007 2008 2009 2010 2011 2012 2015
O
Target* Pro Forma includes FY2012 results for Spartech (11/03/12 YE) and Glasforms
At a Glance
Designed Structures and Solutions
United States
2012 Revenues: $0.85 Billion* Solutions
84%
Europe
2%
Canada
7%
Latin America
7%
Appliance
4% Building & Construction
11%
Wire & Cable
Sign & Advertising
3%
Recreation & Leisure
2%
Pool & Spa
1%
Distribution &
Thermoform
8%
Textiles
2% Operating Income % of Sales
2012 Revenue by Industry Segment* Expanding Profits**
Wire & Cable
7%
Electrical & Electronics
4%
Consumer
6%
Packaging
23%Industrial
7%
Transportation
16%
3%
2.2%
8 ‐ 10%
7%
Misc.
1%
HealthCare
5%
2012 2015
Target
Page 12
*Pro Forma includes FY2012 results for Spartech (11/03/12 YE)
**Pro Forma results include Spartech corporate allocations for FY12
Positioned for Earnings Growth
2015 Target
Rev: $5B
Adj.
EPS: $1.20
Proforma Debt Maturities & Liquidity Summary – 12/31/12
(Reflecting Financing & Spartech Acquisition)
• Total Debt at 12/31/12
h
$1,010
$297
$360 $300
$400
Debt Maturities
As of December 31, 2012
($ millions)
Less: Cash
Net Debt
213
$797
$50
$297
$100
$200
• Available Liquidity
Cash $213
$800 Debt Maturities
As of December 31, 2012
P f f 2/13 Fi i
$50
$0
2015 2017 2020
Interest Rates: 7.500% 5.000% 7.375%
Cash
ABL Availability
Total Liquidity
$213
271
$484
$600
$400
$600
Proforma for 2/13 Financing
($ millions)
Total Liquidity
• Net Debt / EBITDA = 2.0x*
$484
$50
$360
$0
$200
• Net Debt / EBITDA = 2.35x**
$50$0
2015 2020 2023
Page 14
Interest Rates: 7.500% 7.375% 5.250%
*Assumes $65 million of synergies related to Spartech acquistion
**Assumes no synergies related to Spartech acquistion
Use of Cash
Share DividendsOrganic G Acquisitions
• Repurchased 1 2
Repurchase
• Introduced a
Dividends
• Expanding our
Growth
T t th t d
Acquisitions
• Repurchased 1.2
million shares in
2012
• 20.0 million
shares are
il bl f
• Introduced a
quarterly dividend
in Q1 2011 and
increased in Q1
2012 (25%) and
Q1 2013 (20%)
• Expanding our
sales, marketing,
and technical
capabilities is top
priority
• Investing in
• Targets that expand our:
• Specialty offering
• End market presence
• Geographic footprint
available for
repurchase under
the current
authorization
Q1 2013 (20%)
• Objective of
maintaining and
growing
Investing in
operational and
LSS initiatives
(including synergy
capture)
• CAPEX
• Synergy opportunities
• Adjacent material solutions
Proforma Cash Balance = $213M
N t D bt / EBITDA* 2 0X
CAPEX
Net Debt / EBITDA* = 2.0X
*Adjusted EBITDA assumes synergies related to the Spartech acquisition are realized at close; preliminary synergies estimated at $65M and are expected to be achieved over a 3-year period
Page 15
Why Invest In PolyOne?
Pro Forma Debt 2012
7.500% debentures due 2015 $ 50.0
7.375% senior notes due 2020 360.0
5.250% senior notes due 2023 600.0
Other debt 14.0
Pro Forma Debt $ 1,024
Specialty Platform Gross Margin Percentage 2006 2012
Global Specialty Engineered Materials Sales $ 345.3 $ 543.6
Global Color, Additives and Inks Sales 531.8 703.5
Specialty Platform Sales $ 877.1 $ 1,247.1
Global Specialty Engineered Materials Gross Margin $ 41.6 $ 129.8
Global Color, Additives and Inks Gross Margin 83.6 220.6
Specialty Platform Gross Margin $ 125.2 $ 350.4
Specialty Platform Gross Margin Percentage 14.3% 28.1%
https://www.avient.com/sites/default/files/Amy Evins Bio 2023.pdf
https://www.avient.com/sites/default/files/2023-06/2023 Advanced Composites Automotive Overview.pdf
https://www.avient.com/composites
Copyright © 2023, Avient Corporation.
https://www.avient.com/sites/default/files/Avient Climate Change Scenario Analysis Summary 2022.pdf
VOC reducing materials that address
vehicle air quality standards)
Impact Legend Time horizon Legend
Low impact S - short-term 0-5 years
Moderate impact M - medium-term 5-15 years
High impact L - long-term 15-30 years
BUSINESS IMPLICATIONS AND STRATEGIC RESPONSES
BUSINESS IMPLICATIONS AND STRATEGIC RESPONSES
IMPACT DRIVER &
TIME HORIZON
Policy & Legal Risk
M L
Technology Risk
S M
Market Risk
S M
Reputation Risk
L
Acute & Chronic Risk
L
IMPACT DRIVER &
TIME HORIZON
Resource
Efficiency
Opportunity
S M L
Energy Source
Opportunity
M L
Products &
Services and
Markets Opportunities
S M L
· We have embedded an energy intensity KPI (covering process and builidng efficiencies) into the incentive structure for all employees
Our decarbonization pathway is focused on reducing scope 2 emissions reductions for which a VPPA in Europe is planned to commence generation in 2023.
For example, in 2021, we
entered into a VPPA in Europe that will produce 37.5 MW of solar energy with benefits beginning in 2023
https://www.avient.com/sites/default/files/2022-05/AVNT May IR Presentation w Non GAAP Recs.pdf
FX)
$429
$490
2021 2022E
$3.05
$3.50
2021 2022E
FY 2022 PERFORMANCE
( T O TA L C O M PA N Y )
16
$4,819
$5,100
2021 2022E
+ 6%
(+ 8% excluding FX)
Adjusted EPS
+ 14%
(+ 17% excluding FX)
+ 15%
(+ 18% excluding FX)
(in millions) (in millions)
Sales Adjusted Operating Income
17
CAS H F LOW / L E VE RAGE
($ millions) 2022E
Cash Flow from Operating Activities 400$
Less:
Run-Rate CapEx (90)
CapEx for Clariant Integration (10)
CapEx for IT System Upgrade (15)
Total CapEx (115)
Free Cash Flow 285$
Adjusted EBITDA 635$
Net Debt / Adjusted EBITDA 1.7x
D Y N E E M A A C Q U I S I T I O N
19
15x stronger than steel
Reduces weight by 30% vs. other solutions
Well-maintained global asset base poised to serve growing demand
• Purchase price of $1.48B represents 11.4x multiple of
2022 EBITDA
• Acquisition will expand Avient’s composites and fiber
portfolio with Dyneema®, the World’s Strongest Fiber™
• $415M sales and 30%+ EBITDA margins; Immediately
accretive to pro forma 2022 EPS, adding $0.35
• 1,300 patents globally, ~50% of sales patent protected
• 1,000+ employees across global production network and
dedicated technology centers
• Composites platform will increase from $261M to $680M in
revenue and from $49M to $180M in EBITDA Indicates Dyneema
® location
$175M
(42%)
$65M
(16%)
$175M
(42%)
2022E Sales By Region ($M)
(1) $0.35 EPS excludes intangible amortization
(2) Based on 2022 expected results
(1) (2)
(2)
F I T W I T H F O U R P I L L A R S T R AT E G Y
20
Specialization
• Innovation-led organization with
tremendous intellectual property value in
trademarks, patents and “know-how”
• Deep history of application development
and premium, leading brand with the
World’s Strongest FiberTM
Globalization
• Global customer base with an
established presence across all major
geographic regions
• Global technology centers complement
existing Composites applications and
expertise
Operational
Excellence
• Best-in-class safety performance
• Well-run and maintained asset base fit to
serve future growth
• Highly effective and reliable supply chain
with emphasis on optimizing service to
customers
Commercial
Excellence
• Deep customer relationships extend
across the value chain and drive ability
to grow
• Offer a full suite of services with an active
role in design, development and
commercialization
People
Experienced and
talented associates
with a passion for
safety, specialization
and winning
DY N E E M A ® OV E RV I E W
K E Y I N D U S T R I E S
PERSONAL PROTECTION
Military • Law Enforcement • First
Responders Body Armor • Helmets •
Vehicle Protection
$215M
MARINE & SUSTAINABLE
INFRASTRUCTURE
Towing / Mooring • Aquaculture •
Floating Wind • Offshore Cranes
$130M
CONSUMER
Consumer • Outdoor High Performance •
Safety Equipment
$70M
21 Figures reflect 2022 expected sales
MIFOverview Competition
Value chain &
Go-to-market
Strategy Innovation Financials
TECHNOLOGY
22
1,200 1,300
2,500
Avient Dyneema Combined
Patents
• True specialty business – the World’s Strongest Fiber™
• Deep history of application development with customers,
strongest in the industry
• The only UHMwPE (ultra-high molecular weight polyethylene)
fiber producer that is backward integrated
o Provides innovation advantage through control of all steps of the process
• Complementary with our existing reinforced film expertise
(PolyStrand) and engineered fiber presences (Fiber-Line)
WINNING PROPERTIES
Ultra high strength vs. weight Highly flexible
Floats on water Chemically inert; no smell/taste and non-toxic
High resistance to UV radiation Self-lubricating, with low friction
One-of-a-kind technology
®
FORMULATION PROCESS
23
• Like Avient, Dyneema® offers similar
core competencies around formulation
and material science
• Technology that combines polymers and
fibers to provide specialized, high
performing solutions for customers
• Design capabilities ensure that
applications are highly customized for
the specified end use
DYNEEMA ® IN THE VALUE CHAIN
24
UHMwPE
Fiber / Tapes
Military Personnel,
Law Enforcement
Heavy Marine,
Offshore Wind Energy
and Mooring,
Aquaculture
Outdoor,
Footwear, Apparel,
Inflatables
• Material Science
• Formulation
• Service
INTERMEDIATE MANUFACTURING
(CUSTOMERS) OEM / APPLICATION
DEMAND TRENDS
25
• Military spending and near-term demand for higher performing personal protection
products (like Dyneema®) expected to increase
o European NATO members annual defense spend expected to increase by up to 20%(1)
o Japan aiming to almost double defense spending over the next 5 years(2)
o Accelerated launch of next generation technology in North America
• Policy-driven demand for sustainable energy; growth in floating offshore wind
farms which require advanced, durable technology
o Offshore wind expected to grow at a CAGR of 32% with the level of annual installations
quadrupling over the next five years(3)
• Continued investment in aquaculture as a sustainable food source(4)
• Strong demand in outdoor high performance space across niche consumer
applications aligns with 10% growth assumption for Avient’s Composites portfolio
Sources:
(1) “Funding NATO”, NATO.int (April 1, 2022)
(2) “Japan Ruling Party Calls for Defense Spending Boost to 2% of GDP”, WSJ (April 21, 2022)
(3) “Global Wind Report 2021”, Global Wind Energy Council
(4) “Aquaculture Supports a Sustainable Earth”, NOAA Fisheries
26
A L I G N M E N T W I T H
S U S T A I N A B I L I T Y G O A L S
P RO D U C T S
AVIE NT ’S E XIS T ING COM P OS IT E S P ORT F OL IO
D I V E R S E C A P A B I L I T I E S A N D S O L U T I O N S S E R V I N G
M A N U F A C T U R E R S A N D O E M S
LFT Tapes Laminates/Panels Shapes Pultrusion Engineered Fibers
27
AV I E N T ’ S C O M P O S I T E S P O RT F O L I O
S A L E S A N D E B I T DA
28
$74 $84
$216 $212
$261
$5 $10
$32
$41
$49
$180
0
50
100
150
200
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
$550
$600
$650
$700
$750
2017 2018 2019 2020 2021 2022E
$680
($ in millions)
• Dyneema® acquisition will further
improve Composites EBITDA margins
to 26%
• Dyneema® will complement our
existing portfolio with deep formulation
expertise, innovative culture and
global commercial presence
• Composites will continue to be a key
growth driver to deliver future revenue
growth in excess of GDP
(1) Pro forma for the acquisition of Dyneema®
(1)
D I S T R I BU T I O N D I V E S T I T U R E
C O N S I D E R AT I O N S
D I S T R I BU T I O N H I G H L I G H T S
30
$21
$57
$69
$94
$105
0
50
100
150
2006 2011 2016 2021 2022E
• Leading North American Distribution business with
longstanding blue-chip supplier and customer
relationships
• Commercial excellence and regulatory knowledge have
grown healthcare portfolio to over 25% of sales and
positioned business for long-term growth
• Highly specialized portfolio of engineered polymers along
with sustainable solution offerings
• Leading digital capabilities through Avient Now, allowing
enhanced visibility and 24/7 interface with customers
• 98% free cash flow conversion drives greater than 30%
after-tax return on invested capital (ROIC)
• Potential divestiture allows us to remain modestly
leveraged with net debt to adjusted EBITDA expected to
be 2.9x and positions us for further specialty growth in the
future
EBITDA (in $M)
DY N E E M A ® T R A N S AC T I O N OV E RV I E W
31
- $1.48B net purchase price
- Represents 11.4x expected 2022 EBITDA
- Committed financing in place
- Permanent financing to be combination of available cash on-hand, new
Senior Unsecured Notes, new Senior Secured Term Loan
- Potential proceeds from Distribution divestment could be used to pay down
near-term maturing debt
- Closing expected in second half of 2022, subject to regulatory
approvals and certain customary closing conditions
Transaction
Value
Financing
Closing
Conditions /
Timing
C A P I TA L S T RU C T U R E / L E V E R AG E
32
• Financing commitments secured from Morgan Stanley
and J.P.
Morgan
• New Senior Secured Term Loan B and new Senior
Unsecured Notes
• Potential proceeds from sale of Distribution business
modeled to pay off 5.25% senior notes due 2023 and
Term Loan
• Acquisition aligned with Avient’s track record of
disciplined capital allocation policy
• Existing dividend policy maintained, focus on
deleveraging in the near term
(1)
(1) Pro forma for the acquisition of Dyneema® and potential divestiture of Distribution,
including repayment of senior notes due 2023 and Term Loan
Cash and Cash Equivalents 595$
Senior Secured Term Loan due 2026 605$
New Senior Secured Term Loan B 500
Total Senior Secured Debt 1,105$
Senior Unsecured Notes due 2025 650$
New Senior Unsecured Notes 740
Total Senior Unsecured Debt 1,390$
Total Debt 2,495$
Net Debt 1,900$
2022 Pro forma Adjusted EBITDA 660$
Net Debt / Adjusted EBITDA 2.9x
Pro Forma Capitalization
(2022 estimates, all figures in $M)
T WO - Y E A R L E V E R AG E G OA L
33
3.5x
2.7x
1.7x
2.9x
2.5x
2.2x
2019PF 2020PF 2022E 2022PF 2023E 2024E
Dyneema® AcquisitionClariant Color Acquisition
(1) Pro forma for the acquisition of the Clariant Color business
(2) Pro forma for the acquisition of Dyneema® and potential divestiture of
Distribution, including repayment of senior notes due 2023 and Term Loan
(1) (1) (2)
34
P RO F O R M A M O D E L I N G
2022E Pro Forma Pro Forma
($M) w/ Dyneema w/Sale
Revenue 5,100$ 415$ 5,515$ (1,775)$ 3,740$
Adjusted EBITDA 635 130 765 (105) 660
EBITDA % 12% 31% 14% 6% 18%
Pro Forma EPS (Adjusted) 3.50$ 0.00$ 3.50$ (0.56)$ 2.94$
Pro Forma EPS (excl. amortization) 3.96$ 0.35$ 4.31$ (0.56)$ 3.75$
Leverage (12/31/2022E)
Net Debt / Adjusted EBITDA 1.7x 3.5x 2.9x
Avient Dyneema Distribution® ®
OUR SPECIALTY JOURNEY
AC Q U I S I T I O N H I S TO RY
36
Commercial
Resources(1)
Operating Income
($ in millions)
Operating Margins
259
360
At Acquisition 2021
$40
$122
At Acquisition 2021
9%
21%
At Acquisition 2021
Established Acquisitions
(> 7 years)
+ 39% + 210% + 1200 bps
(1) Commercial Resources include associate headcount in R&D / Technical, Marketing and Sales
C L A R I A N T C O LO R AC Q U I S I T I O N
37
$133
$205
2019PF 2021
37
Clariant Color EBITDA Growth
Purchase Price Multiple
10.8x
7.0x
6.1x
2019PF 2021 2021 w/ Full
Synergies
• Acquisition of Clariant Color business significantly expanded
presence in healthcare, packaging and consumer end markets
• Strength of portfolio – double-digit annual EBITDA growth
since acquisition
• $54 million of synergies realized in 2021
• Acquisition completed on July 1, 2020 for $1.45 billion.
O U R VA LUAT I O N V E R S U S P E E R S
Avient Specialty
Formulators
Other
Chemical/Specialty
Companies
5.4
8.5
10.1 9.8
13.8
12.8
12.1 11.8
10.2
21.0
19.2
16.8
13.7 13.6
8.8 8.7 8.7 8.3 8.0
5.6
A
vi
en
t
(2
01
1)
A
vi
en
t
(2
01
6)
A
vi
en
t
(2
02
1)
A
vi
en
t
(T
od
ay
)
R
P
M
P
P
G
K
W
R
A
V
Y
FU
L
A
LB
E
C
L
H
X
L
A
S
H
FM
C
B
N
R
E
M
N
U
N
V
R
C
E
S
C
L
H
U
N
Historic Multiple
APPENDIX
Performance
Additives
15%
Pigments
13%
TiO2
11%
Dyestuffs
3%Polyethylene
12%
Nylon
6%
Polypropylene
5%
Other Raw
Materials
30%
Styrenic Block
Copolymer
5%
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
48
• Significant raw material price inflation and
tight inventory continued in Q1 2022
o The average cost of hydrocarbon based
materials was up 30%
o The average cost of non-hydrocarbon based
materials was up 20%
• Additionally, we continued to experience
other supply chain challenges during Q1
related to raw material spot purchases,
freight constraints and productivity loss as
a result of these shortages
Annual Purchases
RAW MATERIAL AND SUPPLY CHAIN UPDATE
Based on 2021 purchases, excludes Distribution business
SEGMENT DATA
U.S. & Canada
50%
EMEA
25%
Asia
16%
Latin America
9%
2021 SEGMENT, END MARKET AND GEOGRAPHY
50
GEOGRAPHY REVENUESEGMENT FINANCIALS
Consumer
23%
Packaging
19%
Industrial
16%
Building and
Construction
10%
Telecommunications
4%
Energy
2%
END MARKET REVENUE
(1) Total company sales and adjusted EBITDA of $4,819M and $581M, respectively, include intercompany sales eliminations and corporate costs
$2,402M
$409M
$919M
$164M
$1,631M
$94M
Sales EBITDA
Distribution
Specialty Engineered Materials
Color Additives and Inks
$581M$4,819M
(1)
Transportation
11%
Healthcare
15%
Packaging
34%
Consumer
21%
Healthcare
8%
Industrial
16%
Building &
Construction
10%
Transportation
9%
Energy
1% Telecommunications
1%
C O L O R , A D D I T I V E S & I N K S
2 0 2 1 R E V E N U E | $ 2 . 4 B I L L I O N
US & Canada
32%
EMEA
40%
Asia
21%
Latin America
7%
END MARKET REGION
51
All charts reflect 2021 financials
S P E C I A L T Y E N G I N E E R E D M A T E R I A L S
Consumer
27%
Healthcare
10%
Packaging
7%
Telecommunications
16%
Transportation
11%
Industrial
11%
Building &
Construction
11%
Energy
7%
2 0 2 1 R E V E N U E | $ 9 1 9 M I L L I O N
END MARKET
US & Canada
55%
EMEA
25%
Asia
20%
REGION
52
All charts reflect 2021 financials
D I S T R I B U T I O N
Healthcare
26%
Consumer
23%
Packaging
5%
Industrial
20%
Transportation
16%
Building and
Construction
8%
Energy
1%
Telecommunications
1%
US & Canada
80%
Asia
3%
Latin
America
17%
END MARKET REGION
K E Y S U P P L I E R S
2 0 2 1 R E V E N U E | $ 1 . 6 B I L L I O N
53
All charts reflect 2021 financials
T O T A L C O M PA N Y R E G I O N A L S A L E S
B Y E N D M A R K E T
Packaging
30%
Consumer
26%Healthcare
13%
Industrial
14%
Building &
Construction
5%
Telecommunications
2% Energy
2%
Asia
(16% of sales)
Transportation
8%
Packaging
32%
Consumer
13%
Healthcare
5%
Industrial
17%
Building &
Construction
12%
Telecommunications
5%
Energy
4%
EMEA
(25% of sales)
Transportation
12%
54
Consumer
25%
Healthcare
19%
Packaging
10%
Industrial
17%
Building &
Construction
10%
Telecommunications
4%
Energy
2%
US &
Canada
(50% of sales)
Transportation
13%
Packaging
38%
Consumer
33%
Healthcare
8%
Industrial
10%
Building &
Construction
5%
Telecommunications
1%
LATAM
(9% of sales)
Transportation
5%
All charts reflect 2021 financials
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Dollars in millions, except for per share data)
Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders
and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special
items, to assess performance and facilitate comparability of results.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520Wells%2520Fargo%252005%252008%25202014%2520w%2520non%2520GAAP.pdf
Use of Non-GAAP Measures
Page 3
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 – 2014 2015 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
• 18 consecutive
quarters of double-
digit adjusted EPS
growth
• Shift to faster growing,
high margin, less
cyclical end markets
• Key acquisitions propel
current and future
growth, as well as
margin expansion
• Established aggressive
2015 targets
• Continue specialty
transformation
• Targeting $2.50
Adjusted EPS by 2015,
nearly double 2013
EPS
• Drive double digit
operating income and
adjusted EPS growth
Confirmation of Our Strategy
The World’s Premier Provider of Specialized
Polymer Materials, Services and Solutions
Specialization Globalization
Operational
Excellence
Commercial
Excellence
-150.00%
-50.00%
50.00%
150.00%
250.00%
350.00%
450.00%
PolyOne S&P 500 Russell 2000 Dow Jones Chemical
All time high of
$39.28
April 4th, 2014
• 18 consecutive quarters of
double digit EPS growth
• 49% CAGR adjusted EPS
expansion 2006-2013
• 2013 stock price increased
73% versus 30% growth in the
S&P
• More than seven fold increase in
market cap: $0.5b $3.6b
Strategy and Execution Drive Results
Page 6
Appliance
4%
Building &
Construction
13%
Wire & Cable
9%
Electrical &
Electronics
5%
Consumer
10%Packaging
16%
Industrial
12%
HealthCare
11%
Transportation
18%
Misc.
2%
0.12
0.27 0.21
0.13
0.68
0.82
1.00
1.31
2.50
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
$2.50
2006 2007 2008 2009 2010 2011 2012 2013 2015
Target
A
dj
us
te
d
Ea
rn
in
gs
P
er
S
ha
re
2013 Revenues: $3.8 Billion
End Markets
2013 Revenues: $3.8 Billion
EPS
Page 7
PolyOne
At A Glance
United
States
67%
Europe
14%
Canada
7% Asia6%
Latin
America
6%
Specialty
54%
PP&S
18%
Distribution
28%
Mix Shift Highlights Specialty Transformation
Page 8
Old
PolyOne Transformation
*Operating Income excludes corporate charges and special items
2%
34% 43%
62% 64%
0%
20%
40%
60%
80%
100%
2005 2008 2010 2013 Q1 2014 2015
%
o
f
O
pe
ra
tin
g
In
co
m
e*
JV's Performance Products & Solutions Distribution Specialty
65-75%
Specialty OI $5M $46M $87M $195M $60M Target
2015
Target
Proof of Performance & 2015 Goals
Page 9
2006 Q1 2014 2015
“Where we were” “Where we are” Target
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 13.8% 12 – 16%
Global Specialty Engineered
Materials 1.1% 11.6% 12 – 16%
Designed Structures & Solutions -- 6.5% 8 – 10%
Performance Products &
Solutions 5.5% 7.7% 9 – 12%
Distribution 2.6% 6.1% 6 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 64% 65 – 75%
3) ROIC* (after-tax) 5.0% 9.4% 15%
4) Adjusted EPS Growth N/A 42% Double DigitExpansion
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
Bridge to $2.50 Adjusted EPS by 2015
2015 EPS: $2.50
2013 EPS: $1.31
Continued Gross Margin
Expansion
Mergers & Acquisitions
Spartech Accretion
Incremental share buybacks
Ongoing LSS Programs
(50-100 bps/yr)
Accelerated Innovation
& Mix Improvement Several Levers to
Drive Growth
Mid single digit revenue CAGR
Innovation Drives Earnings Growth
$20.3
$52.3
2006 2013
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
*Percentage of Specialty Platform revenue from products introduced in last five years
Page 11
14.3%
30.7%
2006 2013
Specialty Platform
Gross Margin %
19.5%
42.0%
2006 Q1 2014
Healthcare
Consumer
Packaging and Additive Technology
Transportation
Page 12
Unique and Innovative Solutions
https://www.dropbox.com/sh/dwe4t8aacvhb8ui/uD3p_bdglP/Presentation revise pics/GLS Beverage can closure XO 2.jpg
https://www.dropbox.com/sh/dwe4t8aacvhb8ui/-YgkycKypw/Anti-Counterfeiting release & images/GN1979.JPG
60%
100%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2014
Pension Funding**
As of March 31, 2014
Debt Maturities & Pension Funding – 3/31/14
Net Debt / EBITDA* = 1.9x
$48
$317
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Debt Maturities
As of March 31, 2014
($ millions)
Coupon Rates: 7.500% 7.375% 5.250%
** includes US-qualified pension plans only *TTM 3/31/2014
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
$0.16
$0.20
$0.24
$0.32
$0.10
$0.20
$0.30
$0.40
2011 2012 2013 2014
Annual Dividend
Expanding our sales,
marketing, and technical
capabilities
Investing in operational and
initiatives that drive
profitability growth
Manufacturing realignment
Targets that expand our:
• Specialty offerings
• End market presence
• Geographic footprint
• Operating Margin
Synergy opportunities
Adjacent material solutions
Repurchased 1.4 million
shares in Q1 2014
Repurchased 6.4 million
shares since April 2013
13.6 million shares are
available for repurchase
under the current
authorization
Organic
Growth
Acquisitions
Share
Repurchases
Dividends
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/2023-03/AVNT Q2 2022 Earnings Presentation - Website Version.pdf
EPS (ex Amort) 3.96$ 0.13$ 4.09$ (0.58)$ 3.51$
Pro Forma Leverage (12/31/2022E)
Net Debt / Adjusted EBITDA 1.6x 3.4x 2.8x
Forecast Dyneema
Forecast +
Dyneema
Sale of
Distribution
Pro Forma
2022
TWO-YEAR LEVER AGE MODEL
16
3.5x
2.7x
1.6x
2.8x
2.4x
2.0x
2019PF 2020PF 2022E 2022PF 2023E 2024E
Dyneema® AcquisitionClariant Color Acquisition
(1) Pro forma for the acquisition of the Clariant Color business
(2) Pro forma for the acquisition of Dyneema® and potential divestiture of
Distribution, including repayment of senior notes due 2023 and Term Loan
(1) (1) (2)
OUR SPEC IA LTY JOURNEY C ONTINUES
17
• Dyneema® brings leading technology and brand with
the World’s Strongest Fiber™, deep history of
application development and strong
management team focused on specialty
applications
• Dyneema® transaction is aligned with our previously
stated acquisition goal of expanding our composites
and fiber capabilities
• Similar to our other technology expansion
acquisitions, Dyneema® allows us to leverage our
invest-to-grow strategy
• The possible sale of our Distribution business also
presents potential benefits with respect to leverage
and EBITDA margins
7%
46%
66%
86%
100%
0%
20%
40%
60%
80%
100%
2005 2010 2015 2021 2022 PF
%
o
f A
d
ju
st
e
d
E
B
IT
D
A
(1
)
JVs Distribution Performance Products & Solutions Specialty
(1) Adjusted EBITDA is EBITDA excluding corporate costs and special items
(2) Pro forma for the acquisition of Dyneema® and potential divestiture of Distribution
(2)
Healthcare
4%
Packaging
8%
Consumer
10%
Building &
Construction
43%
Industrial
15%
Transportation
14%
Energy
4%
Telecom.
2%
2006 2022 Pro forma
Healthcare
8%
Packaging
23%
Consumer
21%
Building &
Construction
10%
Industrial
15%
Transportation
9%
Energy
4%
Telecom.
4%
Defense
6%
END MAR KET TR ANSF OR MATION TO LESS
CYCLI CAL INDUSTRI ES
( W I T H D Y N E E M A , E X .
D I S T R I B U T I O N )
18
END-MARKET F OCUS F OR
NEW I NNOVATION
Semiconductors Robotics Healthcare
Interconnected disruptive markets with massive innovation needs
19
APPENDIX
Performance
Additives
15%
Pigments
13%
TiO2
11%
Dyestuffs
3%Polyethylene
12%
Nylon
6%
Polypropylene
5%
Other Raw
Materials
30%
Styrenic Block
Copolymer
5%
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
22
• Significant raw material price inflation and
tight inventory continued in Q2 2022,
although at a slightly lesser rate compared
to the prior quarter
o For Q2 2022, the average cost of key
hydrocarbon based materials was up 15%,
roughly the same as the average cost of non-
hydrocarbon based materials
Three Months Ended
June 30, 2022
Three Months Ended
June 30, 2021
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income attributable to Avient shareholders $ 84.7 $ 0.92 $ 68.8 $ 0.74
Special items, after tax 5.1 0.06 11.7 0.13
Adjusted net income / EPS - excluding special items 89.8 0.98 80.5 0.87
FX adjustment n/a n/a $ (4.9) $ (0.05)
Adjusted net income / EPS - excluding special items, adjusted for FX $ 89.8 $ 0.98 $ 75.6 $ 0.82
Reconciliation to Consolidated Statements of Income Three Months Ended June 30,
2022 2021
Results Results
FX
Adjustment
FX Adjusted
Results
Sales:
Color, Additives and Inks $ 649.1 $ 624.4 $ (35.8) $ 588.6
Specialty Engineered Materials 243.9 240.6 (10.5) 230.1
Distribution 443.2 404.4 (0.2) 404.2
Corporate and eliminations (33.8) (34.2) (1.2) (35.4)
Sales $ 1,302.4 $ 1,235.2 $ (47.7) $ 1,187.5
Operating income:
Color, Additives and Inks $ 93.6 $ 86.3 $ (5.2) 81.1
Specialty Engineered Materials 36.6 37.3 (1.3) 36.0
Distribution 27.1 23.7 — 23.7
Corporate and eliminations (27.8) (39.2) 0.2 (39.0)
Operating income 129.5 108.1 (6.3) 101.8
Special items in operating income 4.3 14.2 — 14.2
Adjusted operating income $ 133.8 $ 122.3 $ (6.3) $ 116.0
1
Three Months Ended
June 30, 2022
Reconciliation to Condensed Consolidated Statements of Income
GAAP
Results
Special
Items
Adjusted
Results
Operating Income $ 129.5 $ 4.3 $ 133.8
Income before income taxes $ 114.7 $ 3.4 $ 118.1
Income tax expense - GAAP (30.0) — (30.0)
Income tax impact of special items — (0.8) (0.8)
Tax adjustments — 2.5 2.5
Net income attributable to noncontrolling interests — — —
Net income attributable to Avient shareholders $ 84.7 $ 5.1 $ 89.8
EPS $ 0.92 0.06 $ 0.98
Weighted-average diluted shares 92.1 92.1 92.1
Three Months Ended
June 30, 2021
Reconciliation to Condensed Consolidated Statements of Income
GAAP
Results
Special
Items
Adjusted
Results
Operating Income $ 108.1 $ 14.2 $ 122.3
Income before income taxes $ 89.8 $ 14.2 $ 104.0
Income tax expense - GAAP (20.4) — (20.4)
Income tax impact of special items — (3.4) (3.4)
Tax adjustments — 0.9 0.9
Net income attributable to noncontrolling interests (0.6) — (0.6)
Net income attributable to Avient shareholders $ 68.8 $ 11.7 $ 80.5
EPS $ 0.74 0.13 $ 0.87
Weighted-average diluted shares 92.4 92.4 92.4
Three Months Ended
September 30, 2021
Reconciliation to Condensed Consolidated Statements of Income
GAAP
Results
Special
Items
Adjusted
Results
Operating income $ 78.7 $ 20.0 $ 98.7
Income from continuing operations before income taxes $ 61.1 $ 19.9 $ 81.0
Income tax expense - GAAP (8.5) — (8.5)
Income tax impact of special items — (4.6) (4.6)
Tax adjustments — (3.6) (3.6)
Net income attributable to noncontrolling interests 0.3 — 0.3
Net income from continuing operations attributable to Avient shareholders $ 52.9 $ 11.7 $ 64.6
Net income / EPS $ 0.57 $ 0.13 $ 0.70
Weighted-average diluted shares 92.2 92.2 92.2
2
Reconciliation of EBITDA by Segment
Year Ended
December 31,
2021
Operating income:
Color, Additives and Inks $ 303.1
Specialty Engineered Materials 132.0
Distribution 93.2
Corporate and eliminations (147.1)
Operating income $ 381.2
Items below OI in Corporate:
Other income, net $ (1.3)
Depreciation & amortization:
Color, Additives and Inks $ 105.7
Specialty Engineered Materials 31.7
Distribution 0.8
Corporate and eliminations 7.7
Depreciation & Amortization $ 145.9
EBITDA:
Color, Additives and Inks $ 408.8
Specialty Engineered Materials 163.7
Distribution 94.0
Corporate and eliminations (140.7)
EBITDA $ 525.8
Three Months Ended
June 30,
Year Ended
December 31,
Reconciliation to EBITDA and Adjusted EBITDA: 2022 2021 2021
Net income from continuing operations – GAAP $ 84.7 $ 69.4 $ 230.6
Income tax expense 30.0 20.4 74.0
Interest expense 16.2 19.5 75.3
Depreciation and amortization from continuing operations 36.5 33.8 145.9
EBITDA $ 167.4 $ 143.1 $ 525.8
Special items, before tax 3.4 14.2 57.1
Depreciation and amortization included in special items (1.1) 1.4 (1.7)
Adjusted EBITDA $ 169.7 $ 158.7 $ 581.2
3
AVNT Q2 2022 Earnings Presentation - Website v2.pdf
AVNT Q2 2022 Earnings Presentation - Website.pdf
AVNT Q2 2022 Earnings Presentation - Website
AVNT Q2 2022 Earnings Presentation - Website
AVNT Q2 2022 Earnings Presentation - Website
7.25 323pm IR Deck - AVNT-2022.06.30.pdf
https://www.avient.com/sites/default/files/2024-12/67599-Certificate-06DEC2024.pdf
Certificate Avient Corporation
Certificate Of ConformanceCertificate Of Conformance
This is to certify that the Quality Management System of:
Avient Avient CorporationCorporation
33587 Walker Road
Avon Lake OH
44012
United States
has been assessed by ABS Quality Evaluations, Inc. and found to be in
conformance with the requirements set forth by:
ISO 9001:2015ISO 9001:2015
The Quality Management System is applicable to:
Design and manufacture of colour and additive concentrates, thermoplastic resins and
specialty compounds
Certificate No: 65799
Certification Date: 01 OCT 2020
Effective Date: 25 SEP 2023
Expiration Date 30 SEP 2026
Revision Date: 06 DEC 2024
Dominic Townsend, PresidentDominic Townsend, President
Copyright as of the Effective Date, ABS Quality Evaluations, Inc.
Administration, Site management (Facitilities, EHS), Manufacture, Laboratory (QC
and Technical Development), Maintenance and Infrastructure, Warehouse and
Transport, SCM(DIP, Logistics, CSD, Call-off), QC, Product Stewardship
30, Hsing Pang Road Taoyuan 33068
Taiwan
FACILITY NAMEFACILITY NAME FACILITY ACTIVITYFACILITY ACTIVITY ADDRESSADDRESS
Copyright as of the Effective Date, ABS Quality Evaluations, Inc.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520KeyBanc%2520Conference%2520-%2520September%252014%25202016.pdf
PolyOne Corporation Page 3
PolyOne Commodity to Specialty Transformation
2000-20052000-2005 2006 - 20092006 - 2009 2010 – 20152010 – 2015 2016 and beyond
2016 and
beyond
• Steve Newlin
appointed, Chairman,
• Steve Newlin
appointed, Chairman,
• Substantial EPS growth
from $0.13 to all-time
high of $1.96
• Substantial EPS growth
from $0.13 to all-time
high of $1.96
• Deliver consistent
double digit annual
EPS growth
• Deliver consistent
double digit annual
EPS growth
• Volume driven,
commodity producer
• Volume driven,
commodity producer
pp , ,
President and CEO
• New leadership team
appointed
pp , ,
President and CEO
• New leadership team
appointed
• Shift to faster growing,
high margin, less
cyclical end markets
• Key acquisitions propel
• Shift to faster growing,
high margin, less
cyclical end markets
• Key acquisitions propel
• Maintain >35% vitality
index
• Pursue strategic
i iti th t
• Maintain >35% vitality
index
• Pursue strategic
i iti th t
• Heavily tied to
cyclical end markets
• Heavily tied to
cyclical end markets • Implementation of four
pillar strategy
• Implementation of four
pillar strategy
y q p p
current and future
growth, as well as
margin expansion
• Specialty mix expands
y q p p
current and future
growth, as well as
margin expansion
• Specialty mix expands
acquisitions that
expand specialty
offerings and
geographic breadth
acquisitions that
expand specialty
offerings and
geographic breadth
• Performance largely
dependent on non-
controlling joint
ventures
• Performance largely
dependent on non-
controlling joint
ventures
• Focus on value based
selling, investment in
commercial resources
and innovation to drive
transformation
• Focus on value based
selling, investment in
commercial resources
and innovation to drive
transformation
to 65% of Operating
Income – strongest mix
of earnings in history
to 65% of Operating
Income – strongest mix
of earnings in history
• Invest and grow
current and next
generation talent
• Invest and grow
current and next
generation talent
PolyOne Corporation Page 4
Confirmation of Our Strategy
SpecializationSpecialization GlobalizationGlobalization
Associates
Operational
Excellence
Operational
Excellence
Commercial
Excellence
Commercial
Excellence
Th W ld’ P i P id f S i li d
PolyOne Corporation Page 5
The World’s Premier Provider of Specialized
Polymer Materials, Services and Solutions
27 Consecutive Quarters of EPS Growth
PolyOne Corporation Page 6
PolyOne
At A Glance
2015 Revenues: $3.4 Billion2015 Revenues: $3.4 Billion 2015 Revenues: $3.4 Billion2015 Revenues: $3.4 Billion
Europe
13%
Canada
7%
Asia
7%
Latin America
7% PP&S
20%
United States
Distribution
29%
CAI
23%
SEM
%DSS
End MarketsEnd Markets Adjusted EPSAdjusted EPS
66% 15%
DSS
13%
End MarketsEnd Markets
$1.31
$1.80
Adjusted EPSAdjusted EPS
Industrial
14%
Packaging
13%
Textiles
2%
Transportation
$1.96
$0 27 $0 21
$0.68
$0.82
$1.00
$1.31
Building &
C
Consumer
Healthcare
11%
20%
Wire & Cable
9%
PolyOne Corporation Page 7
$0.12
$0.27 $0.21
$0.13
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Appliances
4%
Construction
12%
10%Electrical &
Electronics
5%
Mix Shift Highlights Specialty Transformation
Old
PolyOne
100%
Transformation
2020
Platinum
Vision
80%
nc
om
e*
40%
60%
pe
ra
tin
g
In
80%+
43%
65%
20%
40%
%
o
f O
2%0%
2005 2010 2015 2020
Specialty OI $5M $87M $229M Platinum
Vision
PolyOne Corporation Page 8
*Operating Income excludes corporate charges and special items
JV's Performance Products & Solutions Distribution Specialty
Vision
Color and Engineered Materials at the
Heart of Specialty Transformation
OPERATING MARGIN
16.7%
17.5%
20%+
COLOR, ADDITIVES
AND INKS
15 8%
20%+
SPECIALTY
ENGINEERED MATERIALS
9.7%
12.2%
14.7%
9.6% 9.3%
12.1%
14.7%
15.8%
1 7%
4.6% 5.1%
5.5%
7.2%
8.1%
3.4%
5.1%
8.0%
8.6%
1.7%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q'16 2020
Platinum
Vision
1.1% 1.3%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q'16 2020
Platinum
Vision
YTD YTD
PolyOne Corporation Page 9
Proof of Performance & 2020 Goals
2006 2Q 2016 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income %1) Operating Income %
Specialty:
Color, Additives & Inks 1.7% 18.0% 20%+
S i lt E i d M t i l 1 1% 14 9% 20%+Specialty Engineered Materials 1.1% 14.9% 20%+
Designed Structures & Solutions N/A 1.7% (TTM) 8 – 10%
Performance Products &
Solutions 5.5% 12.3% 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 11% Double Digit
PolyOne Corporation Page 10
) j %
Expansion
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
TPE’s & Film
Therma-Tech™ & Sheet
GEON™ Vinyl
TPE + OnForce™
Gravi-Tech™
Polymer ColorantsTherma-Tech™
Film
PolyOne Corporation Page 11Page 11
Target End Markets… Healthcare
OnForce
(SEM)
Glasforms
(SEM)
TPE + OnForce
(SEM)
TPE Vibration Dampening
(SEM/GLS)
Source: Outdoor Industry Association
TPE & Film
(SEM + DSS)
Thermoplastic Elastomers
(SEM)
TPE O F
Glasforms
(SEM)
Polymer Colorants
(CAI)
Thermatech
(SEM)
TPE + OnForce
(SEM)
OnForce
(SEM)
Thermoplastic Elastomers
(SEM)
Sheet
(DSS)
(SEM)
Glasforms
(SEM)
Polymer Colorants
(CAI)
PolyOne Corporation Page 12
Target End Markets… Outdoor High Performance
Sound & Vibration
Management
Roof Systems
Management
Interior & Exterior Trim
Interior Structural
Components
Fuel Handling
Underhood
Components
g
SystemsAir management
Electronics & Cameras
Structural Braces
& Brackets
Lighting
Fluid Handling
PolyOne Corporation Page 13
Target End Markets… Automotive
ColorMatrix™
Amosorb™
ColorMatrix™
Ultimate™ UV
Oxygen Scavenger
Ultimate UV
Light Barrier
PreservaPak™
OnColor™
Smart Batch™
OnCap™
Laser Marking
Additives
VersaFlex™
TPE Cap Liner
PolyOne Corporation Page 14
Target End Markets… Packaging
Innovation Drives Earnings Growth
$53
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
34%
CAI & SEM
Gross Margin
Target ≥ 35%
$20
$53
14%
12%
43%
*Specialty Platform revenue from products introduced in last five years
2006 2015 2006 20152006 2015
Innovation Pipeline PotentialInnovation Pipeline Potential
PolyOne Corporation Page 15
Ours is Not a Cost Cutting Story
VolumeCommercial, R&D Adjusted
2,883
Volume
(lbs in millions)
$192
Commercial, R&D
and Marketing
Spending ($M)
$721
Adjusted
Gross Profit ($M)
-16%
+86%
+138%
2,414$103
$303
2006 20152006 2015 2006 2015
PolyOne Corporation Page 16
Design and Service as a Differentiator
Right Material &
Color
Desired
Product Design
Appropriate
Manufacturing Process
Connecting
Delivering Concept to
Commercialization
Connecting
the Dots with
iQ Design Labs and
InVisiO Color Design
PolyOne Corporation Page 17
CommercializationInVisiO Color Design
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
On-Time Delivery Commitment to Operational Excellence
World’s Best Business
Process Excellence
Program in 2012*
World’s Best Start-up
program for Lean Six Sigma
Deployment in 2009*
81%
93%
2006 2015
Working Capital % of Sales
16.2%
9.7%
52% of associates trained in LSS
PolyOne Corporation Page 18
2006 2015
Five consecutive years – CFO Magazine Best Working
Capital Management in the chemical industry
Debt Maturities & Pension Funding
102%
100%
Pension Funding**
As of June 30, 2016
$700
$800 Debt Maturities
As of June 30, 2016
($ millions)
80%
90%
100%
$547
$600
$600
$700
60%
60%
70%
$500
40%
50%
$300
$400
20%
30%
2008 2Q 2016
$200
2022 2023
Coupon Rate: LIBOR + 2 75% 5 250%
PolyOne Corporation Page 19
Net Debt / Adjusted EBITDA*= 2.3x
** includes US-qualified pension plans only*TTM 6/30/2016
Coupon Rate: LIBOR + 2.75% 5.250%
(3.50%)
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
Expanding our sales,
marketing, and
technical capabilities
Investing in operational
Repurchased 17.3
million shares since
early 2013
10 0 million shares are Investing in operational
and LSS initiatives
~75% of capital
expenditures fund
growth initiatives Organic
Gro th
Share
Rep rchases
10.0 million shares are
available for
repurchase under the
current authorization
Growth Repurchases
Acquisitions Dividends
Annual Dividend
Targets that expand
our:
• Specialty offerings
• End market
$0.20
$0.32
$0.40
$0.48
$0.30
$0.40
$0.50
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material $0.24
PolyOne Corporation Page 20
$0.16
$
$0.10
$0.20
2011 2012 2013 2014 2015 2016
solutions
Why Invest In PolyOne?
Adjusted EPS is calculated as follows:
Adjusted EPS 2006Y* 2007Y* 2008Y* 2009Y* 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y
Net income (loss) attributable to PolyOne common
shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6
Joint venture equity earnings, after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) — — — —
Special items, after tax(1) (51.2) 10.7 457.2 (75.9) (72.5) (72.8) 36.2 32.6 90.5 28.9
Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5
Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8 96.5 93.5 88.7
Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96
Adjusted EPS Q1 2009* Q2 2009* Q3 2009* Q4 2009* Q1 2010 Q2 2010 Q3 2010 Q4 2010
Net income attributable to PolyOne common shareholders $ 3.3 $ 1.3 $ 51.3 $ 50.8 $ 20.1 $ 44.7 $ 0.1 $ 87.6
Joint venture equity earnings, after tax (8.2) (5.8) (3.0) (2.0) (0.5) (4.5) (6.2) (3.5)
Special items, after tax(1) (10.2) 9.2 (36.9) (38.0) (3.8) (22.1) 25.4 (72.0)
Adjusted net (loss) income $ (15.1) $ 4.7 $ 11.4 $ 10.8 $ 15.8 $ 18.1 $ 19.3 $ 12.1
Diluted shares 92.2 93.5 93.9 94.4 95.3 96.3 96.3 97.4
Adjusted EPS $ (0.16) $ 0.05 $ 0.12 $ 0.11 $ 0.17 $ 0.19 $ 0.20 $ 0.12
Adjusted EPS Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
Net income attributable to PolyOne common shareholders $ 106.0 $ 23.1 $ 16.0 $ 8.3 $ 15.3 $ 18.4 $ 19.4 $ 0.2
Joint venture equity earnings, after tax (3.7) - - - - - - -
Special items, after tax(1) (81.3) 1.3 2.8 4.4 6.2 8.9 5.4 15.7
Adjusted net income $ 21.0 $ 24.4 $ 18.8 $ 12.7 $ 21.5 $ 27.3 $ 24.8 $ 15.9
Diluted shares 96.4 95.5 94.0 91.9 90.7 90.7 90.2 90.5
Adjusted EPS $ 0.22 $ 0.26 $ 0.20 $ 0.14 $ 0.24 $ 0.30 $ 0.28 $ 0.18
2
Adjusted EPS Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
Net income (loss) attributable to PolyOne common
shareholders $ 11.2 $ 38.6 $ 23.2 $ 21.0 $ 29.4 $ 30.9 $ 32.3 $ (14.6)
Special items, after tax(1) 17.7 (2.0) 12.3 4.6 12.5 17.4 13.1 47.5
Adjusted net income $ 28.9 $ 36.6 $ 35.5 $ 25.6 $ 41.9 $ 48.3 $ 45.4 $ 32.9
Diluted shares 92.8 99.1 98.1 97.2 95.7 94.3 93.1 91.3
Adjusted EPS $ 0.31 $ 0.37 $ 0.36 $ 0.26 $ 0.44 $ 0.51 $ 0.49 $ 0.36
Adjusted EPS Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Net income attributable to PolyOne common shareholders $ 30.2 $ 66.8 $ 44.5 $ 3.1 $ 39.1 $ 50.0
Special items, after tax(1) 11.4 (15.9) 3.0 30.4 9.1 3.2
Adjusted net income $ 41.6 $ 50.9 $ 47.5 $ 33.5 $ 48.2 $ 53.2
Diluted shares 90.1 89.8 88.4 86.6 85.5 84.7
Adjusted EPS $ 0.46 $ 0.57 $ 0.54 $ 0.39 $ 0.56 $ 0.63
Adjusted operating margin is calculated as follows:
Adjusted operating margin Q1 2009* Q2 2009* Q3 2009* Q4 2009* YTD 2009* Q1 2010 Q2 2010 Q3 2010 Q4 2010 YTD 2010
Operating Income $ 9.9 $ 17.1 $ 57.9 $ 52.2 $ 137.1 $ 32.3 $ 58.6 $ 42.0 $ 26.3 $ 159.2
Special items (1) (1.3) 4.6 (27.5) (24.5) (48.7) - (14.5) 5.5 4.2 (4.8)
Joint venture equity earnings (12.8) (9.0) (4.8) (3.1) (29.7) (0.8) (7.1) (9.7) (5.5) (23.1)
Adjusted operating (loss) income $ (4.2) $ 12.7 $ 25.6 $ 24.6 $ 58.7 $ 31.5 $ 37.0 $ 37.8 $ 25.0 $ 131.3
Sales $ 463.4 $ 496.5 $ 548.3 $ 552.5 $ 2,060.7 $ 604.0 $ 666.2 $ 650.7 $ 585.3 $ 2,506.2
Operating Margin (0.9)% 2.6% 4.7% 4.5% 2.8% 5.2% 5.6% 5.8% 4.3% 5.2%
Adjusted operating margin Q1 2011 Q2 2011 Q3 2011 Q4 2011 YTD 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 YTD 2012
Operating income (loss) $ 173.4 $ 42.4 $ 33.4 $ (46.2) $ 203.0 $ 37.4 $ 43.3 $ 43.5 $ 13.3 $ 137.5
Special items (1) (127.2) 2.7 4.9 72.9 (46.7) 8.5 11.8 8.3 25.3 53.9
Joint venture equity earnings (5.7) - - - (5.7) - - - - -
Adjusted operating income $ 40.5 $ 45.1 $ 38.3 $ 26.7 $ 150.6 $ 45.9 $ 55.1 $ 51.8 $ 38.6 $ 191.4
Sales $ 682.8 $ 723.4 $ 694.0 $ 609.2 $ 2,709.4 $ 745.5 $ 756.6 $ 707.7 $ 651.0 $ 2,860.8
Operating Margin 5.9% 6.2% 5.5% 4.4% 5.6% 6.2% 7.3% 7.3% 5.9% 6.7%
3
Adjusted operating margin Q1 2013 Q2 2013 Q3 2013 Q4 2013 YTD 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 YTD 2014
Operating income (loss) $ 40.5 $ 80.7 $ 61.6 $ 48.7 $ 231.5 $ 56.4 $ 49.4 $ 63.6 $ (14.3) $ 155.1
Special items (1) 16.6 (5.2) 10.8 7.8 30.0 22.9 39.8 22.0 80.2 164.9
Adjusted operating income $ 57.1 $ 75.5 $ 72.4 $ 56.5 $ 261.5 $ 79.3 $ 89.2 $ 85.6 $ 65.9 $ 320.0
Sales $ 801.1 $ 1,037.6 $ 1,008.9 $ 923.6 $ 3,771.2 $ 1,002.3 $ 1,005.5 $ 958.4 $ 869.3 $ 3,835.5
Operating Margin 7.1% 7.3% 7.2% 6.1% 6.9% 7.9% 8.9% 8.9% 7.6% 8.3%
Adjusted operating margin Q1 2015 Q2 2015 Q3 2015 Q4 2015 YTD 2015 Q1 2016 Q2 2016
Operating income $ 70.1 $ 80.3 $ 69.2 $ 31.3 $ 250.9 $ 71.3 $ 81.5
Special items (1) 9.3 11.9 18.7 31.4 71.3 13.8 10.4
Adjusted operating income $ 79.4 $ 92.2 $ 87.9 $ 62.7 $ 322.2 $ 85.1 $ 91.9
Sales $ 873.1 $ 887.1 $ 841.6 $ 775.8 $ 3,377.6 $ 847.0 $ 861.5
Operating Margin 9.1% 10.4% 10.4% 8.1% 9.5% 10.0% 10.7%
Adjusted gross margin is calculated as follows:
(In millions) Twelve Months Ended December 31, 2015
Gross margin - GAAP $ 681.5
Special items in gross margin(1) 39.7
Gross margin before special items $ 721.2
Specialty platform percentage of operating income is calculated as follows:
Platform operating income mix percentage 2006Y* Q2 2016
Color, Additives and Inks $ 8.9 $ 38.2
Specialty Engineered Materials 3.9 21.4
Designed Structures and Solutions — 1.0
Specialty Platform $ 12.8 $ 60.6
Performance Products and Solutions 64.2 21.3
Distribution 19.2 17.8
Joint ventures 102.9 —
Corporate and eliminations 34.5 (18.2)
Operating income GAAP $ 233.6 $ 81.5
Less: Corporate and eliminations (34.5) 18.2
Operating income excluding Corporate $ 199.1 $ 99.7
Specialty platform percentage of operating income excluding corporate 6% 61%
4
Adjusted EBITDA and net debt to adjusted EBITDA is calculated as follows:
(In millions)
Six Months Ended
June 30, 2015
Twelve Months Ended
December 31, 2015
Six Months Ended
June 30, 2016
Trailing Twelve Months
Ended June 30, 2016
Income from continuing operations, before income taxes $ 116.7 $ 167.7 $ 123.6 $ 174.6
Interest expense, net 32.3 64.1 29.2 61.0
Depreciation and amortization 50.1 104.3 52.4 106.6
Special items, impact on income (loss) from continuing operations before
income taxes(1) 21.2 87.6 24.5 90.9
Accelerated depreciation included in special items (0.3) (6.2) (3.2) (9.1)
Adjusted EBITDA(2) $ 220.0 $ 417.5 $ 226.5 $ 424.0
Short-term and current portion of long-term debt $ 18.4
Long-term debt 1,126.2
Total Debt 1,144.6
Less: Cash and cash equivalents (161.4)
Net Debt $ 983.2
Net Debt / TTM Adjusted EBITDA 2.3
* Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principal, discontinued operations or the related resegmentation
2) Adjusted EBITDA does not include the pro forma impact of acquired businesses for the trailing twelve months ended June 30, 2016.
https://www.avient.com/sites/default/files/2023-12/Avient_Health_And_Safety_Policy_Dec_18_2023.pdf
Ashish Khandpur
President and CEO
December 18, 2023