https://www.avient.com/sites/default/files/2021-09/avnt-q2-2021-earnings-presentation.pdf
Develop and implement solutions to end plastic
waste while supporting AEPW $1.5B
investment in key initiatives.
2 0 3 0 S U STA I NA B I L I T Y TA RG E TS
20
2 0 2 1 AV I E N T I N V E S TO R DAY
21
• Investor Day to be held December 9, 2021 in New York, NY
• Company will provide updates on its key growth drivers
with a deep focus on sustainable solutions
Revenue Growth Drivers
Long-Term
Growth Rate
Sustainable Solutions 8–12%
Healthcare 8–10%
Composites / 5G 10%
Growth in Asia / LATAM 5%
Other (GDP growth) 2–3%
Avient 6.5%
• Senior leadership team to also present on Clariant MB
integration, M&A opportunities and capital allocation
priorities
PEER COMPARISONS
22
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
https://www.avient.com/sites/default/files/2021-06/avient-ir-presentation-may-2021-w-non-gaap-recs.pdf
Operating Income
$3,783
$4,100
2020PF 2021E
Adjusted EPS
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Previous
Guidance
Current
Guidance
$3,783
$4,300
2020PF 2021E
$308
$360
2020PF 2021E
$308
$410
2020PF 2021E
$1.93
$2.40
2020PF 2021E
$1.93
$2.80
2020PF 2021E
(1) (1)(1)
(1)(1) (1)
(in millions) (in millions)
$442
$457
$560
2019PF 2020PF 2021E
$1.74
$1.93
$2.80
2019PF 2020PF 2021E
FULL YEAR 2019 – 2021 ORGANIC GROWTH
( T O TA L C O M PA N Y )
23
Sales Adjusted EBITDA
$3,981
$3,783
$4,300
2019PF 2020PF 2021E
+ 8%
Adjusted EPS
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(1) (1)
(in millions) (in millions)
(1)(1)
+ 27% + 61%
(1) (1)
24
BA L A N C E S H E E T
• Deleveraging to 1.9x net debt to
adjusted EBITDA by the end of
2021
• Driven by record adjusted EBITDA
performance and strong free cash
flow generation from asset light
business
• Future cash deployment: M&A,
opportunistic share repurchases
and balance sheet / continued
leverage reduction
3.5x
2.7x
1.9x
2019PF 2020PF 2021E
Net Debt / Adjusted EBITDA
(1) (1)
($ in m illions)
2021E Adjusted EBITDA 560$
Free Cash Flow 275$
Total Debt 1,860
Less: Cash (800)
Net Debt 1,060$
2021E Net Debt / Adjusted EBITDA 1.9x
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
PEER COMPARISONS
25
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Morgan%2520Stanley%2520Global%2520Chemicals%2520and%2520Agriculture%2520Conference%2520-%252011%253A15%253A2016.pdf
A reconciliation of each non-GAAP financial measure with the most directly
comparable GAAP financial measure is attached to this presentation which is posted
on our website at www.polyone.com.
4 POLYONE CORPORATION
About PolyOne
Reach
7,000 associates | 77 facilities | $3.4 B 2015 revenue
Global Presence
10,000 global customers | Americas, Europe, Africa, Asia |
Global sales, technical and manufacturing footprint
Solutions
35,000+ polymer solutions | 12 innovation centers |
Support for design through manufacturing
5 POLYONE CORPORATION
What We Do
Value
Formulation
Expertise Inputs
Base resins
Additives
Modifiers
Pigments
Expertise in
Polymer
Materials,
Services and
Solutions
OEMs
Brand Owners
Processers
Assemblers
Driving customer value with specialty products & services
Service
InVisiOSM Color
Services
IQ Design Labs
LSS Customer
First
POLYONE CORPORATION 6
CAI
23%
SEM
15%
DSS
13%
POD
29%
PPS
20%
2015 Revenue: $3.4 Billion
At a Glance
United
States
66%
Europe
13%
Canada
7%
Asia
7%
Latin
America
7%
$0.12
$0.27 $0.21
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
2015 Revenue: $3.4 Billion
2015 Operating Income: $322 Million
CAI
38%
SEM
23%
DSS
4%
POD
19%
PPS
16%
Adjusted Earnings Per Share
7 POLYONE CORPORATION
Old
PolyOne
*Operating Income excludes corporate charges and special items
2%
43%
65%
0%
20%
40%
60%
80%
100%
2005 2010 2015 2020
%
o
f O
pe
ra
tin
g
In
co
m
e*
JV's Performance Products & Solutions Distribution Specialty
80%+
Specialty OI $5M $87M $229M
Transformation
2020
Platinum
Vision
Platinum
Vision
Mix Shift Highlights Specialty Transformation
POLYONE CORPORATION 8
-$0.10
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
2009 2010 2011 2012 2013 2014 2015 2016
Adjusted Earnings Per Share
$0.56
3Q
-2%
0%
2%
4%
6%
8%
10%
12%
2009 2010 2011 2012 2013 2014 2015 2016
Adjusted Consolidated Operating Margin
2.8%
5.2%
5.6%
6.7%
8.3%
6.9%
9.5% 9.9%
3Q
28 Consecutive Quarters of EPS Growth
9 POLYONE CORPORATION
2006 2016 YTD 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income % of Sales
Specialty:
Color, Additives & Inks 1.7% 17.0% 20%+
Specialty Engineered Materials 1.1% 15.2% 20%+
Designed Structures & Solutions N/A 0.6% (TTM) 8 – 10%
Performance Products &
Solutions 5.5% 11.6% 12 – 14%
Distribution 2.6% 6.6% 6.5 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 60% 80%+
3) ROIC* 5.0% 11.6% 15%
4) Adjusted EPS Growth N/A 11.5% Double Digit
Expansion
Proof of Performance & 2020 Goals
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
POLYONE CORPORATION 10
2,883
2,414
2006 2015
Volume
(lbs in millions)
-16%
$103
$192
2006 2015
Commercial, R&D
and Marketing
Spending ($M)
+86%
$88
$322
2006 2015
Adjusted
Operating Profit ($M)
+266%
Ours is Not a Cost Cutting Story
11 POLYONE CORPORATION
Innovation Drives Earnings Growth
*Specialty Platform revenue from products introduced in last five years
$20
$53
2006 2015
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
34%
2006 2015
CAI & SEM
Gross Margin
12%
43%
2006 2015
Target ≥ 35%
Innovation Pipeline Potential
12 POLYONE CORPORATION
Globalization
Specialization
Commercial
Excellence
Operational
Excellence
Growth in
urbanization
Changing
demographics
Climate and
resource
challenges
Increase of
individual
power
Evolution and
expansion of
healthcare
Strategic Growth Opportunities
Four Pillar Strategy Global Megatrends
Attractive
Revenue &
Margin Growth
Opportunities
13 POLYONE CORPORATION
Primary Industries Served
2015 Revenue: $3.4 Billion
Electrical &
Electronic
5%
Building &
Construction
12%
Appliance
4%
Industrial
14%
Wire & Cable
9%
Healthcare
11%
Consumer
10%
Packaging
13%
Transportation
20%
Focus End Markets
14 POLYONE CORPORATION
Therma-Tech™ & Sheet
GEON™ Vinyl
Polymer Colorants
Therma-Tech™
TPE’s & Film
TPE + OnForce™
Gravi-Tech™
Page 14
Film
Target End Markets… Healthcare
15 POLYONE CORPORATION
Sound & Vibration
Management
Fuel Handling
Systems
Interior & Exterior Trim
Structural Braces
& Brackets
Interior Structural
Components
Lighting
Air management
Electronics & Cameras
Fluid Handling
Target End Markets… Automotive
Underhood
Components
Roof Systems
16 POLYONE CORPORATION
PreservaPak™
OnColor™
Smart Batch™
VersaFlex™
TPE Cap Liner
ColorMatrix™
Amosorb™
Oxygen Scavenger
ColorMatrix™
Ultimate™ UV
Light Barrier
OnCap™
Laser Marking
Additives
Target End Markets… Packaging
17 POLYONE CORPORATION
Source: Outdoor Industry Association
TPE Vibration Dampening
(SEM/GLS)
TPE + OnForce
(SEM)
OnForce
(SEM)
Advanced Composites
(SEM)
TPE Vibration Dampening
(SEM/GLS)
Target End Markets… Outdoor High Performance
Thermoplastic Elastomers
(SEM)
Advanced Composites
(SEM)
Polymer Colorants
(CAI)
Sheet
(DSS)
TPE & Film
(SEM + DSS)
Advanced Composites
(SEM)
Polymer Colorants
(CAI)
Thermatech
(SEM)
Thermoplastic Elastomers
(SEM)
TPE + OnForce
(SEM)
OnForce
(SEM)
18 POLYONE CORPORATION
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 Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material
solutions
Repurchased 318,000
shares in Q3 2016
Repurchased 17.6
million shares since
early 2013
9.7 million shares are
available for
repurchase under the
current authorization
Increased annual
dividend by 12.5% to
$0.54 per share,
representing the sixth
consecutive year of
dividend growth
19 POLYONE CORPORATION
Returning Cash to Shareholders
$0.16
$0.20
$0.24
$0.32
$0.40
$0.48
$0.54
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
2011 2012 2013 2014 2015 2016 2017
Annual Dividend
Since 2011, we have returned nearly $800 million to shareholders
$130 million returned through dividends
$650 million returned through share repurchases
$650M
$0
$150
$300
$450
$600
$750
2011 2012 2013 2014 2015 Q3'16
Cumulative Share Repurchases
(in millions)
POLYONE CORPORATION 20
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Jefferies%2520Industrials%2520Conference%25202015.pdf
Platform
operating
income
mix
percentage 2005* 2006* 2007* 2008* 2009* 2010* 2011 2012 2013 2014
2015
YTD
Global Color,
Additives and
Inks
$ 4.3 $ 8.9 $ 25.7 $ 28.1 $ 25.2 $ 37.7 $ 50.2 $ 75.3 $ 104.0 $ 124.9 $ 73.4
Global
Specialty
Engineered
Materials
0.4 3.9 4.9 17.6 20.6 49.7 45.9 47.0 57.2 72.4 43.2
Designed
Structures and
Solutions
- - - - - - - - 33.4 45.1 7.7
Specialty
Platform $ 4.7 $ 12.8 $ 30.6 $ 45.7 $ 45.8 $ 87.4 $ 96.1 $ 122.3 $ 194.6 $ 242.4 $ 124.3
Performance
Products and
Solutions
75.7 64.2 65.8 31.3 33.1 54.0 27.7 38.8 56.0 63.1 27.8
Distribution 19.5 19.2 22.1 28.1 24.8 42.0 56.0 66.0 63.3 68.2 34.8
Joint ventures 91.9 102.9 34.8 28.6 25.5 18.9 5.0 - - - -
Corporate and
eliminations (51.5) 34.5 (73.3) (425.1) 7.9 (27.7) 18.2 (89.6) (82.4) (218.6) (36.5)
Operating
income (loss)
GAAP
$ 140.3 $ 233.6 $ 80.0 $ (291.4) $ 137.1 $ 174.6 $ 203.0 $ 137.5 $ 231.5 $ 155.1 $ 150.4
Less:
Corporate
operating
expense
51.5 (34.5) 73.3 425.1 (7.9) 27.7 (18.2) 89.6 82.4 218.6 36.5
Operating
income
excluding
Corporate
$ 191.8 $ 199.1 $ 153.3 $ 133.7 $ 129.2 $ 202.3 $ 184.8 $ 227.1 $ 313.9 $ 373.7 $ 186.9
Specialty
platform
operating mix
percentage
2% 6% 20% 34% 35% 43% 52% 54% 62% 65% 67%
* Historical results have not been restated for the Resin business divestiture or the related resegmentation.
2
Adjusted EPS 2006Y* 2007Y* 2008Y* 2009Y* 2010Y 2011Y 2012Y 2013Y 2014Y
Net income attributable to
PolyOne common
shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0
Joint venture equity earnings,
after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) - - -
Special items, after tax(1) (21.2) 41.4 310.0 (31.0) 15.8 (30.5) 35.7 30.4 101.0
Tax adjustments(2) (30.0) (30.7) 147.2 (44.9) (88.3) (42.3) 0.5 2.2 (10.5)
Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5
Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8 96.5 93.5
Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80
Adjusted EPS 2010 Q2 2011 Q2 2012 Q2 2013 Q2 2014 Q2 2015 Q2
Net income attributable to PolyOne common shareholders $ 44.7 $ 23.1 $ 18.4 $ 38.6 $ 30.9 $ 66.8
Joint venture equity earnings, after tax (4.5) - - - - -
Special items, after tax(1) (9.0) 0.9 8.0 (2.2) 22.6 8.0
Tax adjustments(2) (13.1) 0.4 0.9 0.2 (5.2) (23.9)
Adjusted net income $ 18.1 $ 24.4 $ 27.3 $ 36.6 $ 48.3 $ 50.9
Diluted shares 96.3 95.5 90.7 99.1 94.3 89.8
Adjusted EPS $ 0.19 $ 0.26 $ 0.30 $ 0.37 $ 0.51 $ 0.57
* Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principal or discontinued operations
https://www.avient.com/sites/default/files/resources/Wells%2520Fargo%2520Conference%2520-%2520IR%2520Presentation%25205-6-2015%2520-%2520wNon%2520GAAP%2520and%2520Appendix.pdf
Platform
operating
income
mix
percentage 2005* 2006* 2007* 2008* 2009* 2010* 2011 2012 2013 2014 2015 Q1
Global Color,
Additives and
Inks
$ 4.3 $ 8.9 $ 25.7 $ 28.1 $ 25.2 $ 37.7 $ 50.2 $ 75.3 $ 104.0 $ 124.9 $ 33.8
Global
Specialty
Engineered
Materials
0.4 3.9 4.9 17.6 20.6 49.7 45.9 47.0 57.2 72.4 23.1
Designed
Structures and
Solutions
- - - - - - - - 33.4 45.1 3.2
Specialty
Platform $ 4.7 $ 12.8 $ 30.6 $ 45.7 $ 45.8 $ 87.4 $ 96.1 $ 122.3 $ 194.6 $ 242.4 $ 60.1
Performance
Products and
Solutions
75.7 64.2 65.8 31.3 33.1 54.0 27.7 38.8 56.0 63.1 11.5
Distribution 19.5 19.2 22.1 28.1 24.8 42.0 56.0 66.0 63.3 68.2 15.7
Joint ventures 91.9 102.9 34.8 28.6 25.5 18.9 5.0 - - - -
Corporate and
eliminations (51.5) 34.5 (73.3) (425.1) 7.9 (27.7) 18.2 (89.6) (82.4) (218.6) (17.2)
Operating
income (loss)
GAAP
$ 140.3 $ 233.6 $ 80.0 $ (291.4) $ 137.1 $ 174.6 $ 203.0 $ 137.5 $ 231.5 $ 155.1 $ 70.1
Less:
Corporate
operating
expense
51.5 (34.5) 73.3 425.1 (7.9) 27.7 (18.2) 89.6 82.4 218.6 17.2
Operating
income
excluding
Corporate
$ 191.8 $ 199.1 $ 153.3 $ 133.7 $ 129.2 $ 202.3 $ 184.8 $ 227.1 $ 313.9 $ 373.7 $ 87.3
Specialty
platform
operating mix
percentage
2% 6% 20% 34% 35% 43% 52% 54% 62% 65% 69%
* Historical results have not been restated for the Resin business divestiture or the related resegmentation.
2
Adjusted EPS 2006Y* 2007Y* 2008Y* 2009Y* 2010Y 2011Y 2012Y 2013Y 2014Y 2015 Q1
Net income
attributable to
PolyOne
common
shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 30.2
Joint venture
equity
earnings, after
tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) - - - -
Special items,
after tax(1) (21.2) 41.4 310.0 (31.0) 15.8 (30.5) 35.7 30.4 101.0 5.5
Tax
adjustments(2) (30.0) (30.7) 147.2 (44.9) (88.3) (42.3) 0.5 2.2 (10.5) 5.9
Adjusted net
income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 41.6
Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8 96.5 93.5 90.1
Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 0.46
* Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principal or discontinued operations
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520RW%2520Baird%2520Global%2520Industrial%2520Conference%2520-%252011%253A8%253A2016.pdf
A reconciliation of each non-GAAP financial measure with the most directly
comparable GAAP financial measure is attached to this presentation which is posted
on our website at www.polyone.com.
4 POLYONE CORPORATION
About PolyOne
Reach
7,000 associates | 77 facilities | $3.4 B 2015 revenue
Global Presence
10,000 global customers | Americas, Europe, Africa, Asia |
Global sales, technical and manufacturing footprint
Solutions
35,000+ polymer solutions | 12 innovation centers |
Support for design through manufacturing
5 POLYONE CORPORATION
What We Do
Value
Formulation
Expertise Inputs
Base resins
Additives
Modifiers
Pigments
Expertise in
Polymer
Materials,
Services and
Solutions
OEMs
Brand Owners
Processers
Assemblers
Driving customer value with specialty products & services
Service
InVisiOSM Color
Services
IQ Design Labs
LSS Customer
First
POLYONE CORPORATION 6
CAI
23%
SEM
15%
DSS
13%
POD
29%
PPS
20%
2015 Revenue: $3.4 Billion
At a Glance
United
States
66%
Europe
13%
Canada
7%
Asia
7%
Latin
America
7%
$0.12
$0.27 $0.21
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
2015 Revenue: $3.4 Billion
2015 Operating Income: $322 Million
CAI
38%
SEM
23%
DSS
4%
POD
19%
PPS
16%
Adjusted Earnings Per Share
7 POLYONE CORPORATION
Old
PolyOne
*Operating Income excludes corporate charges and special items
2%
43%
65%
0%
20%
40%
60%
80%
100%
2005 2010 2015 2020
%
o
f O
pe
ra
tin
g
In
co
m
e*
JV's Performance Products & Solutions Distribution Specialty
80%+
Specialty OI $5M $87M $229M
Transformation
2020
Platinum
Vision
Platinum
Vision
Mix Shift Highlights Specialty Transformation
POLYONE CORPORATION 8
-$0.10
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
2009 2010 2011 2012 2013 2014 2015 2016
Adjusted Earnings Per Share
$0.56
3Q
-2%
0%
2%
4%
6%
8%
10%
12%
2009 2010 2011 2012 2013 2014 2015 2016
Adjusted Consolidated Operating Margin
2.8%
5.2%
5.6%
6.7%
8.3%
6.9%
9.5% 9.9%
3Q
28 Consecutive Quarters of EPS Growth
9 POLYONE CORPORATION
2006 2016 YTD 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income % of Sales
Specialty:
Color, Additives & Inks 1.7% 17.0% 20%+
Specialty Engineered Materials 1.1% 15.2% 20%+
Designed Structures & Solutions N/A 0.6% (TTM) 8 – 10%
Performance Products &
Solutions 5.5% 11.6% 12 – 14%
Distribution 2.6% 6.6% 6.5 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 60% 80%+
3) ROIC* 5.0% 11.6% 15%
4) Adjusted EPS Growth N/A 11.5% Double Digit
Expansion
Proof of Performance & 2020 Goals
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
POLYONE CORPORATION 10
2,883
2,414
2006 2015
Volume
(lbs in millions)
-16%
$103
$192
2006 2015
Commercial, R&D
and Marketing
Spending ($M)
+86%
$88
$322
2006 2015
Adjusted
Operating Profit ($M)
+266%
Ours is Not a Cost Cutting Story
11 POLYONE CORPORATION
Innovation Drives Earnings Growth
*Specialty Platform revenue from products introduced in last five years
$20
$53
2006 2015
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
34%
2006 2015
CAI & SEM
Gross Margin
12%
43%
2006 2015
Target ≥ 35%
Innovation Pipeline Potential
12 POLYONE CORPORATION
Globalization
Specialization
Commercial
Excellence
Operational
Excellence
Growth in
urbanization
Changing
demographics
Climate and
resource
challenges
Increase of
individual
power
Evolution and
expansion of
healthcare
Strategic Growth Opportunities
Four Pillar Strategy Global Megatrends
Attractive
Revenue &
Margin Growth
Opportunities
13 POLYONE CORPORATION
Primary Industries Served
2015 Revenue: $3.4 Billion
Electrical &
Electronic
5%
Building &
Construction
12%
Appliance
4%
Industrial
14%
Wire & Cable
9%
Healthcare
11%
Consumer
10%
Packaging
13%
Transportation
20%
Focus End Markets
14 POLYONE CORPORATION
Therma-Tech™ & Sheet
GEON™ Vinyl
Polymer Colorants
Therma-Tech™
TPE’s & Film
TPE + OnForce™
Gravi-Tech™
Page 14
Film
Target End Markets… Healthcare
15 POLYONE CORPORATION
Sound & Vibration
Management
Fuel Handling
Systems
Interior & Exterior Trim
Structural Braces
& Brackets
Interior Structural
Components
Lighting
Air management
Electronics & Cameras
Fluid Handling
Target End Markets… Automotive
Underhood
Components
Roof Systems
16 POLYONE CORPORATION
PreservaPak™
OnColor™
Smart Batch™
VersaFlex™
TPE Cap Liner
ColorMatrix™
Amosorb™
Oxygen Scavenger
ColorMatrix™
Ultimate™ UV
Light Barrier
OnCap™
Laser Marking
Additives
Target End Markets… Packaging
17 POLYONE CORPORATION
Source: Outdoor Industry Association
TPE Vibration Dampening
(SEM/GLS)
TPE + OnForce
(SEM)
OnForce
(SEM)
Advanced Composites
(SEM)
TPE Vibration Dampening
(SEM/GLS)
Target End Markets… Outdoor High Performance
Thermoplastic Elastomers
(SEM)
Advanced Composites
(SEM)
Polymer Colorants
(CAI)
Sheet
(DSS)
TPE & Film
(SEM + DSS)
Advanced Composites
(SEM)
Polymer Colorants
(CAI)
Thermatech
(SEM)
Thermoplastic Elastomers
(SEM)
TPE + OnForce
(SEM)
OnForce
(SEM)
18 POLYONE CORPORATION
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 Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material
solutions
Repurchased 318,000
shares in Q3 2016
Repurchased 17.6
million shares since
early 2013
9.7 million shares are
available for
repurchase under the
current authorization
Increased annual
dividend by 12.5% to
$0.54 per share,
representing the sixth
consecutive year of
dividend growth
19 POLYONE CORPORATION
Returning Cash to Shareholders
$0.16
$0.20
$0.24
$0.32
$0.40
$0.48
$0.54
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
2011 2012 2013 2014 2015 2016 2017
Annual Dividend
Since 2011, we have returned nearly $800 million to shareholders
$130 million returned through dividends
$650 million returned through share repurchases
$650M
$0
$150
$300
$450
$600
$750
2011 2012 2013 2014 2015 Q3'16
Cumulative Share Repurchases
(in millions)
POLYONE CORPORATION 20
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520–%2520Goldman%2520Sachs%2520Conference%25202015.pdf
Platform
operating
income
mix
percentage 2005* 2006* 2007* 2008* 2009* 2010* 2011 2012 2013 2014 2015 Q1
Global Color,
Additives and
Inks
$ 4.3 $ 8.9 $ 25.7 $ 28.1 $ 25.2 $ 37.7 $ 50.2 $ 75.3 $ 104.0 $ 124.9 $ 33.8
Global
Specialty
Engineered
Materials
0.4 3.9 4.9 17.6 20.6 49.7 45.9 47.0 57.2 72.4 23.1
Designed
Structures and
Solutions
- - - - - - - - 33.4 45.1 3.2
Specialty
Platform $ 4.7 $ 12.8 $ 30.6 $ 45.7 $ 45.8 $ 87.4 $ 96.1 $ 122.3 $ 194.6 $ 242.4 $ 60.1
Performance
Products and
Solutions
75.7 64.2 65.8 31.3 33.1 54.0 27.7 38.8 56.0 63.1 11.5
Distribution 19.5 19.2 22.1 28.1 24.8 42.0 56.0 66.0 63.3 68.2 15.7
Joint ventures 91.9 102.9 34.8 28.6 25.5 18.9 5.0 - - - -
Corporate and
eliminations (51.5) 34.5 (73.3) (425.1) 7.9 (27.7) 18.2 (89.6) (82.4) (218.6) (17.2)
Operating
income (loss)
GAAP
$ 140.3 $ 233.6 $ 80.0 $ (291.4) $ 137.1 $ 174.6 $ 203.0 $ 137.5 $ 231.5 $ 155.1 $ 70.1
Less:
Corporate
operating
expense
51.5 (34.5) 73.3 425.1 (7.9) 27.7 (18.2) 89.6 82.4 218.6 17.2
Operating
income
excluding
Corporate
$ 191.8 $ 199.1 $ 153.3 $ 133.7 $ 129.2 $ 202.3 $ 184.8 $ 227.1 $ 313.9 $ 373.7 $ 87.3
Specialty
platform
operating mix
percentage
2% 6% 20% 34% 35% 43% 52% 54% 62% 65% 69%
* Historical results have not been restated for the Resin business divestiture or the related resegmentation.
2
Adjusted EPS 2006Y* 2007Y* 2008Y* 2009Y* 2010Y 2011Y 2012Y 2013Y 2014Y
Net income attributable to
PolyOne common
shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0
Joint venture equity earnings,
after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) - - -
Special items, after tax(1) (21.2) 41.4 310.0 (31.0) 15.8 (30.5) 35.7 30.4 101.0
Tax adjustments(2) (30.0) (30.7) 147.2 (44.9) (88.3) (42.3) 0.5 2.2 (10.5)
Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5
Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8 96.5 93.5
Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80
Adjusted EPS 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1
Net income attributable to PolyOne common shareholders $ 20.1 $ 106.0 $ 15.3 $ 11.2 $ 29.4 $ 30.2
Joint venture equity earnings, after tax (0.5) (3.7) - - - -
Special items, after tax(1) (0.3) (79.8) 6.1 17.2 14.1 5.5
Tax adjustments(2) (3.5) (1.5) 0.1 0.5 (1.6) 5.9
Adjusted net income $ 15.8 $ 21.0 $ 21.5 $ 28.9 $ 41.9 $ 41.6
Diluted shares 95.3 96.4 90.7 92.8 95.7 90.1
Adjusted EPS $ 0.17 $ 0.22 $ 0.24 $ 0.31 $ 0.44 $ 0.46
* Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principal or discontinued operations
https://www.avient.com/sites/default/files/2024-12/AVNT Investor Day 2024 Presentation.pdf
All Rights Reserved
2024 19
Digital
digital tools,
data-driven insights
artificial intelligence
Higher run-rates, improved
yields, reduced downtime and
wastage
Manufacturing
execution
system
EXPECTED BENEFITS
Reduction in time-to-market,
use of alternative formulations
to mitigate risks from resin
shortage
Color
design
EXPECTED BENEFITS
Faster generation/repurposing
of content, enhanced search
engine optimization leading to
more engagement
Marketing
content
EXPECTED BENEFITS
Copyright © .
https://www.avient.com/sites/default/files/2021-09/avient2020sustainabilityreport-9-2-21.pdf
Non-toxic and heavy-metal-free ingredients and biodegradable carrier resins.
Improves recyclability for
blended resins while reducing energy required during
injection-stretch blow molding by up to 35%.
reSound™ Biopolymer Formulations combine engineering thermoplastic resins with bio-polymers such as
PLA, PHB, PHBV and biopolyesters.
https://www.avient.com/sites/default/files/2021-06/avient-ir-presentation-june-2021-w-non-gaap-recs_0.pdf
Operating Income
$3,783
$4,100
2020PF 2021E
Adjusted EPS
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Previous
Guidance
Current
Guidance
$3,783
$4,300
2020PF 2021E
$308
$360
2020PF 2021E
$308
$410
2020PF 2021E
$1.93
$2.40
2020PF 2021E
$1.93
$2.80
2020PF 2021E
(1) (1)(1)
(1)(1) (1)
(in millions) (in millions)
$442
$457
$560
2019PF 2020PF 2021E
$1.74
$1.93
$2.80
2019PF 2020PF 2021E
FULL YEAR 2019 – 2021 ORGANIC GROWTH
( T O TA L C O M PA N Y )
23
Sales Adjusted EBITDA
$3,981
$3,783
$4,300
2019PF 2020PF 2021E
+ 8%
Adjusted EPS
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(1) (1)
(in millions) (in millions)
(1)(1)
+ 27% + 61%
(1) (1)
24
BA L A N C E S H E E T
• Deleveraging to 1.9x net debt to
adjusted EBITDA by the end of
2021
• Driven by record adjusted EBITDA
performance and strong free cash
flow generation from asset light
business
• Future cash deployment: M&A,
opportunistic share repurchases
and balance sheet / continued
leverage reduction
3.5x
2.7x
1.9x
2019PF 2020PF 2021E
Net Debt / Adjusted EBITDA
(1) (1)
($ in m illions)
2021E Adjusted EBITDA 560$
Free Cash Flow 275$
Total Debt 1,860
Less: Cash (800)
Net Debt 1,060$
2021E Net Debt / Adjusted EBITDA 1.9x
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
PEER COMPARISONS
25
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.