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Forward Looking Statements POLYONE CORPORATION 3 This presentation includes the use of both GAAP (generally accepted accounting principles) and non-GAAP financial measures. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or solely as alternatives to, financial measures prepared in accordance with GAAP. 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.
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They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to: The final amount of charges resulting from the planned North American asset realignment and the Company’s ability to realize anticipated savings and operational benefits from the asset realignment; Our ability to achieve the strategic and other objectives relating to the acquisition of Spartech Corporation, including any expected synergies; Our ability to successfully integrate Spartech and achieve the expected results of the acquisition, including, without limitation, the acquisition being accretive; Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; The financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate liquidity) to maintain their credit availability; The speed and extent of an economic recovery, including the recovery of the housing market; Our ability to achieve new business gains; The effect on foreign operations of currency fluctuations, tariffs, and other political, economic and regulatory risks; Changes in polymer consumption growth rates in the markets where we conduct business; Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online; Fluctuations in raw material prices, quality and supply and in energy prices and supply; Production outages or material costs associated with scheduled or unscheduled maintenance programs; Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; An inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital reductions, cost reductions, employee productivity goals, and an inability to raise or sustain prices for products or services; An inability to raise or sustain prices for products or services; An inability to maintain appropriate relations with unions and employees; The inability to achieve expected results from our acquisition activities; Our ability to continue to pay cash dividends; The amount and timing of repurchases of our common shares, if any; and Other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and changes in the rate of inflation 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.
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They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. 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. 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.
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Microsoft PowerPoint - PolyOne Investor Presentation 5.4.20_v8 P E O P LE P RO D U CT S P LA N E T P E RF O R MAN C E JVs Performance Products & Solutions Distribution Specialty To be the world’s premier provider of specialized polymer materials, services and solutions To be the world’s premier provider of specialized polymer materials, services and sustainable solutions 2016 2017 2018 2019 Lightweighting Reduced Material Requirements Improved Recyclability Renewable Energy Applications Eco-conscious Bio-derived Content Reduced Energy Use VOC Reduction $275M $325M $355M $410M 14% Total Annual Growth 9% Organic Annual Growth PolyOne Corporation 33 Adjusted EPS attributable to PolyOne common shareholders is calculated as follows: 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016** 2017** 2018 2018*** Q1 2019*** 2019 Q1 2020 Net income from continuing operations attributable to PolyOne common shareholders Joint venture equity earnings, after tax Special items, before tax(1) Special items, tax adjustments(1) Adjusted net income from continuing operations attributable to PolyOne common shareholders $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6 $ 166.4 $ 173.5 $ 161.1 $ 87.7 $ 22.4 $ 75.5 $ 33.1 (19.0) (14.7) (3.7) — — — — — — — — — — — (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 23.8 32.9 59.5 58.7 12.2 61.7 9.6 (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (15.9) (24.8) (25.3) (25.1) (1.2) (5.9) (1.0) $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 174.3 $ 181.6 $ 195.3 $ 121.3 $ 33.4 $ 131.3 $ 41.7 Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1 80.4 80.4 78.2 77.7 86.7 Adjusted EPS attributable to PolyOne common shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.06 $ 2.21 $ 2.43 $ 1.51 $ 0.43 $ 1.69 $ 0.48 * Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principle, discontinued operations or the related resegmentation. ** Pro forma for sale of Designed Structures and Solutions segment (DSS). *** Pro forma for sale of Performance Products and Solutions segment (PP&S). Reconciliation to Adjusted EPS Excluding Special Items and Impacts of February 2020 Equity Offering Three MonthsEnded 2020年3月31日 Net income from continuing operations – GAAP $ 33.1 Special items, after tax(1) 8.6 After tax interest income earned on equity proceeds, included in Interest expense, net (0.7) Adjusted net income excluding special items and impact of interest income on equity proceeds $ 41.0 Diluted weighted-average shares used to compute earnings per common share 86.7 Weighted-average impact of 15.3 million shares issued in February 2020 equity offering (9.3) Diluted weighted-average shares excluding impact of shares issued in February 2020 equity offering 77.4 Adjusted EPS - excluding special items and the net impact of equity offering $ 0.53 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 shareholders and diluted adjusted earnings per share (EPS) from continuing operations attributable to PolyOne shareholders, excluding special items, to assess performance and facilitate comparability of results. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or solely as alternatives to, financial measures prepared in accordance with GAAP.