https://www.avient.com/sites/default/files/2023-03/2023 Avient Bookmarked Proxy Statement - FINAL.pdf
Preete (C) W.A. Fearon (C) G.J. Goff (C) W.R.
https://www.avient.com/sites/default/files/2021-12/AVNT 2021 Investor Day_0.pdf
C O - C R E A T I O N Fostering imagination • Enabling creative exploration • Focus on customers’ sustainability • Driving long-term revenue growth ColorWorks Avient Corporation 21 • Rapid customer response • Immediate color measurement and quotation • Fast track product development to “now” • Specialized labs for fast sample delivery • Optimized formulations leveraging cost effective raw materials C U S T O M E R - F O C U S E D C O L O R F O R M U L A T I O N Avient Corporation 22 InstaColr CycleWorks A D V A N C I N G T H E C I R C U L A R E C O N O M Y • Laboratory mimics real-world circular recycling in a research environment • Conducts chemistry testing to improve plastics recycling for customers • Screening and evaluation of additive and colorant systems during recycling • Collaboration platform for customers and value chain partners Avient Corporation 23 Avient Corporation 24 Michael Garratt and Walter Ripple Our Sustainability Promise As the world’s premier provider of specialized polymer materials, services and solutions, Avient is committed to meeting the needs of the present without compromising future generations’ ability to meet their needs. Vinod Purayath We have talked about: Avient Corporation 99 …Sustainable Solutions …Healthcare …Composites / 5G …Growth in Asia and Latin America N E W P R O D U C T D E V E L O P M E N T S & P H A S E D O F F E R L A U N C H E S Growth Through Innovation Avient Corporation 100 Sustainable Solutions 32 7 105 6 41 Total 191 13 1171 13 Frame Opportunity Commercial Launch Scale-up & Test Market Prototype Build Business Case 45 5471228 236Total Projects 80% of innovation projects for Sustainable Solutions Paradigm Shift Almost every great advancement in technology can be attributed to a breakthrough in material science.
https://www.avient.com/sites/default/files/2023-10/LubriOne Product Selection Guide.pdf
LUBRIONE™ INTERNALLY LUBRICATED FORMULATIONS PRODUCT SELECTION GUIDE PRODUCT DESCRIPTION UNITS TEST METHOD NN–000/15T NN–20GF– 10GB/13T–2S NN–30GF/10T WHITE LB8900-0001 30GF/15T LB8900-0002 30GF/13T-2S LB8900-0003 18T-2S ATT–000/5T AT–000/18T– 2S NATURAL 5209 FPL 20 PS–30GF/2S LB5210–0237 1B NATURAL PC–10CF/15T Base Polymer PA 66 PA 66 PA 66 PK PK PK POM POM POM PBT PP PC General Properties Specific Gravity g/cm3 ASTM D792 1.23 1.46 1.47 1.56 1.55 1.33 1.38 1.47 1.51 1.54 1.13 1.31 Molding Shrinkage ASTM D955 Flow % 1.0–2.0 0.20–0.50 0.50–1.0 0.30–0.60 0.20–0.40 1.7–2.3 1.5–2.0 2.0–3.0 2.0–3.0 0.20–0.40 0.10–0.30 0.10–0.30 Water Absoprtion (23°C, 24 hr.) % ASTM D570 0.8 – 0.050–1.0 0.3 0.4 0.4 0.050 – 0.050 – – – Mechanical Properties Tensile Modulus(1) MPa ASTM D638 2650 9650 9790 8050 7380 1250 965 1770 2420 8620 4140 – Tensile Strength(1) (Yield) MPa ASTM D638 61.4 119 122 119 94 47 35 40 45 108 72.4 90 Tensile Elongation(1) (Break) % ASTM D638 3.0–5.0 1.0–3.0 1.5 3 2 35 40 30 26 3 – – Flexural Modulus MPa ASTM D790 2760 6890 6890 7380 6410 1300 1080 1740 1790 6690 4840 5500 Flexural Strength MPa ASTM D790 108 172 214 182 167 55 41.4 62.7 68.3 165 110 130 Coefficient of Friction ASTM D1894 vs. Steel – Static 0.25 0.46 0.18 0.15 0.12 0.19 0.11 0.14 0.13 0.24 0.17 0.17 Impact Notched Izod Impact (23°C, 3.18 mm, Injection Molded) J/m ASTM D256A 41 64(6) 110 107 107 70 80 37 37 75 – 69 Thermal Properties Heat Deflection Temperature ASTM D648 0.45 MPa °C 215(6) – 250 215 216 184 152 151(6) 153(6) 218(6) – – 1.8 MPa °C 65(6) 239(7) 244(6) 210 210 75 94 81.1(6) 88 197(6) – 135(5) Electrical Properties Surface Resistivity ohms/sq ASTM D254 – – – 1.30x1012 1.9x1012 5.2x1012 – – – – – 1.0x109 Dielectric Strength (Short Time) kV/mm – – 8.5 – – – – – – – – – Flammability Flame Rating Class UL 94 HB – – HB HB HB – HB – – – – LubriOne™ Internally Lubricated Formulations NOTES (1) Type I, 5.1mm/min (2) Type I, 21.3 mm/min (3) Type I, 50 mm/min (4) Type I, 5.1mm/min, Break (5) 3.2 mm thick, Unannealed (6) 6.35 mm thick, Unannealed (7) 3.2 mm thick, Annealed PRODUCT DESCRIPTION UNITS TEST METHOD 5024 RS HI 5021 RS S1 5021 RS X2 5019 X1 LB6700- 5001 RS AF Black NN- 000/01M Black SO REC LB6600- 5030 RS Grey LB3300- 5010 RS LB3300- 5005 RS REC LB3220- 5001 RS C Natural X1 5010 GP Grey 5006 RS PE 5004 RS PE LB4200- 5022 Black LB4200- 5023 Base Polymer PA 6 PA6/PA66 PA66 PBT PC PKE POM Lubricant UHMWPE1 UHMWPE UHMWPE UHMWPE UHMWPE MoS22 Graphite UHMWPE UHMWPE UHMWPE Graphite UHMWPE UHMWPE MoS2 UHMWPE Filler type GF10 GF30 GF30 GF50 GF50 Unfilled GF33 GF20 MI20 GF10 Unfilled GF20 GF30 Unfilled Unfilled General Properties Specific Gravity g/cm3 ISO 1183 1.18 1.35 1.39 1.55 1.58 1.14 1.44 1.42 1.46 1.23 1.26 1.34 1.43 1.4 1.35 Mechanical Properties Tensile Modulus (23°C) MPa ISO 527-1 4250 9500 9000 15500 16600 3500 10600 6300 3330 4000 1630 5300 9250 2470 2150 Tensile Strength (Yield, 23°C) MPa ISO-527-2 97 150 160 205 200 85 164 102 55 60 60 108 99.1 55 50 Tensile Elongation (Break, 23°C) % ISO-527-2 12 2.5 3 2.7 2.4 3.4 2.0 4.2 8 2.5 46 3.7 1.5 11 11 Flexural Strength (23°C) MPa ISO 178 103 – – 285 265 108 215 127 78 85 38 155 117 73 68 Flexural Modulus (23°C) MPa ISO 178 3250 – – 12400 11100 2690 9000 4700 3000 3100 1380 4600 5450 2210 2070 Impact Charpy Notched Impact Strength (23°C, Injection Molded) kJ/m^2 ISO 179 14 12 10 15 10 3 6 7.7 4.3 12 15 10 7.6 8 5 Charpy Unnotched Impact Strength (23°C, Injection Molded) kJ/m^2 ISO 179 82 55 61 75 60 65 50 47 69 - NB 63 36 NB NB Thermal Properties Deflection Temperature Under Load 1.8 Mpa, Unannealed °C ISO 75-2/A 107 – – 204 – 73 235 – – – 90 210 204 86 80 Cofficient of Friction (CoF) & Wear Rate CoF vs.
https://www.avient.com/sites/default/files/2021-09/mevopur-colors-for-needle-hubs-bulletin-cn.pdf
主要特性 在三个通过ISO 13485认证的医疗生产线生 产全球统一的配方,提供全球一致性和供应 链保障 变更控制记录不限于CAS编号级别,降低变 更风险 不含动物源性物质和邻苯二甲酸盐 可将颜色与添加剂相结合,以增强产品性能 和防护性能 法规支持 经过预测试的原材料:- 美国药典(USP)23,第87和88章(VI类) 萃取和生物学评价 - ISO 10993,第4、5、10、11和18部分, 萃取和生物学评价 - 美国药典和欧洲药典中针对USP 、 ICH Q3D可萃取金属和EP3.1聚烯烃的测试的 其他监管支持信息 FDA器械主文件 食品接触符合FDA/EU*要求 针头的标称外径 (mm) 颜色说明 RAL 潘通色号 透明产品代码 不透明产品代码 0.4 中灰色 7035 423 C PP7M665125 PP7M665127 0.45 褐色 8017 7588 C PP8M665294 PP8M665296 0.5 橘黄色 2003 173 C PP2M665298 PP2M665300 0.55 中紫色 4005 7676 C PP4M665290 PP4M665292 0.6 深蓝色 5010 288 C PP5M665894 PP5M665896 0.7 黑色 9005 黑色 C PP9M664950 PP9M664952 0.8 深绿色 6001 7483 C PP6M665687 PP6M665689 0.9 黄色 1021 115 C PP1M665211 PP1M665213 1.1 乳白色 1015 7401 C PP0M665290 PP0M665292 1.2 粉色 3015 502 C PE3M665725 PP3M665727 适用医疗保健使用限制—见下文。埃万特的产品不为以下目的或用途而设计,也不会宣传或预期用于以下目的或用途:(a) 被美国食品药品监督管理局(FDA)或国际标准化组织(ISO)归类为“植入”类器械的医疗器械;或美国药典(USP)或ISO标准定义的“永久”使用器械;或 (b) 经修订的欧盟指令90/385/EEC中定义的有源植入式医疗器械;或者 (c) 经修订的欧盟指令93/42/EEC中定义的“长期”使用的医疗器械。
https://www.avient.com/sites/default/files/2022-05/Application Snapshot NIR _ REJOIN Final.pdf
Application Snapshot NIR _ REJOIN Final COSMETICS BRAND P E R S O N A L C A R E & C O S M E T I C S P A C K A G I N G • Excellent color performance in PCR resin • Combinable with functional additives • Parts manufactured with 100% PCR • Worked with customer to create circular packaging options with glamorous and striking special effects • Provided a solution that enabled added shine, ensuring the customer achieved beautiful packaging without compromising NIR detectability • Ensured the solution was available for many cosmetics packaging types, including bottles, make-up and caps OnColor™ NIR Black & Dark Sortable Colorants & Rejoin™ PCR Masterbatch for Polyolefins KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2021-10/versaflex-top-cover-of-air-cushion-powder-case-study-one-pager.pdf
Cosmetic brands COSMETIC BRANDS C O V E R O F A I R C U S H I O N P O W D E R C O M P A C T • Low coefficient of friction (COF) to balance the opening pressure and sealing performance • General FDA compliance • Good chemical resistance and barrier protection to water and oxygen • Overmold to PP with good compression set • Delivered chemically resistant material with excellent sealing properties and good resilience to achieve requested performance • Provided onsite technical support to improved injection speed and achieve good bonding performance • Offered a material solution that could be leveraged across the customer’s global cosmetic brands Custom Versaflex™ TPE KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2022-07/ECCOH_ 5981 BK UV - Aerial Drop Cable - Application Snapshot_0.pdf
CABLE MANUFACTURER A E R I A L D R O P C A B L E J A C K E T • Operating temperature between -40°C to 70°C • Fire performance: CPR classification Dca-, s1, d1, a1 • Low water absorption • Clamp resistance • Strong UV resistance & mechanical performance • Improved thermal behaviour giving the customer the flexibility to use the same cable design in a wide range of climates • Enabled superior mechanical performance and water absorption over previous solutions providing versatility and outdoor use • Provided material in black color specifically used in drop cables ECCOH™ 5981 BK UV Formulations KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2023-04/Heavy Duty Connectors Application Snapshot.pdf
ELECTRICAL PARTS MANUFACTURER H E A V Y D U T Y C O N N E C T O R S A N D A C C E S S O R I E S • Reduce material rematching and rejection through more efficient pre-testing • Improve processing efficiencies and color consistency in highly FR-filled and high-temperature resins • Achieve regulatory compliance across multiple resin families • Gain better supply chain control to manage scarcity of key engineering resins and changing resin producers • Offered eight UL 94-recognized sites in U.S. and Canada that perform comprehensive analytical, physical and mechanical testing • Provided increased speed to market and expedited design timelines for new products using existing standardized and pre- approved color palettes • Ensured regulatory compliance and security of supply OnColor™ UL 94 Colorants KEY REQUIREMENTS WHY AVIENT AVIENT SOLUTION QUALITY + SPEED TO MARKET LEARN MORE © 2023, Avient Corporation, All Rights Reserved https://www.avient.com/products/polymer-colorants/solid-color-masterbatches/oncolor-ul94-colorants
https://www.avient.com/sites/default/files/2024-12/Rejoin PCR Colorants - Recycled Printer Cover - case study snapshot.pdf
Home printer OEM HOME PRINTER OEM R E C Y C L E D H I P S I N J E C T I O N C O V E R O F P R I N T E R • Provide PCR-based colorants for a more sustainable solution • Meet both color and mechanical requirements in PCR materials • Offer user-friendly PCR + Colorants solution to address the batch variance problem of PCR in an economical way • Offered revolutionary supply model of PCR + Colorants, ensuring precise quality and color • Helped customers solve the batch variance problem of PCR in a digital way and shortened the color-matching time with PCR Color Prediction Service • Provided on-site technical support to customer Rejoin PCR Colorants KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Seaport%2520Global%2520Transports%2520%2526%2520Industrials%2520Confer....pdf
Investor Day POLYONE I N V E S T O R P R E S E N T A T I O N M A R C H 2 0 1 8 FORWARD LOOKING STATEMENTS PolyOne Corporation 2 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. V I S I O N PolyOne Corporation 4 To be the world’s premier provider of specialized polymer materials, services and solutions C O R E V A L U E S P E R S O N A L V A L U E S Honesty IntegrityRespect Specialization Commercial Excellence Operational Excellence Globalization Collaboration ExcellenceInnovation To be the world’s premier provider of specialized polymer materials, services and solutions PolyOne Corporation 5 P O L Y O N E 2 0 1 7 R E V E N U E | $ 3 . 2 B I L L I O N 9% United States 59% 14% Latin America 9% Canada PolyOne Distribution 34% Performance Products & Solutions 21% Specialty Engineered Materials 19% Color Additives & Inks 26% Segment End Market Geography Building & Construction Electrical & Electronics 2009 2010 2011 2012 2013 2014 2015 2016* 2017* A D J U S T E D E P S E X P A N S I O N C O N S E C U T I V E Y E A R S PolyOne Corporation 6 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.06 $2.21 *Pro Forma for sale of DSS E A R L Y Y E A R S D E F I N E D B Y S P E C I A L T Y M I X I M P R O V E M E N T PolyOne Corporation 7 76% 2005 2017 $5M $280M + 25% + 33% Specialty OI % of Operating Income Consistently Deliver Double Digit Annual EPS Growth *ROIC is defined as TTM adjusted OI after tax divided by the sum of average debt and equity less cash over a 5 quarter period PolyOne Corporation 8 2006 2017 2020 “Where we were” “Where we are” Platinum Vision ROIC* 5.0% 14.0% 15.0% Operating Income % of Sales Color, Additives & Inks 1.7% 15.5% 20%+ Specialty Engineered Materials 1.1% 12.5% 20%+ Performance Products & Solutions 5.5% 10.7% 12-14% Distribution 2.6% 6.3% 6.5-7.5% P R O O F O F P E R F O R M A N C E & P L A T I N U M V I S I O N 531 660130 149 504 607 R&D / Technical Marketing Sales I N V E S T M E N T I N COMMERCIAL RESOURCES D R I V I N G G R O W T H PolyOne Corporation 9 Increased commercial headcount Largest organic revenue growth since recession $2.9 $2.9 $3.2 2015 2016 2017 Revenue in billions of $ + 24% + 15% + 20% Total + 10% Organic + 7% Free Cash Flow (In millions) ROIC* PolyOne Corporation 10 $50 $116 $143 $0 $40 $80 $120 $160 $200 2012 2014 2016 2018 10.8% 11.3% 12.9% 11.0% 13.0% 15.0% 2012 2014 2016 2017 2020 Platinum Vision $200 - $220 F R E E C A S H F L O W A N D I M P R O V I N G R E T U R N S *ROIC is defined as TTM adjusted OI after tax divided by the sum of average debt and equity less cash over a 5 quarter period 15.0% $767M R E T U R N I N G C A S H T O S H A R E H O L D E R S O V E R $ 9 5 0 M I L L I O N S I N C E 2 0 1 1 PolyOne Corporation 11 $0 $150 $300 $450 $600 $750 2011 2012 2013 2014 2015 2016 2017 $0.16 $0.20 $0.24 $0.32 $0.40 $0.48 $0.58 $0.70 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 3-Year Dividend Plan Cumulative Share Repurchases (In millions) Increasing Annual Dividend Transformational Opportunity for Growth Through M&A Adjacent Opportunity for Growth Through New Product Pipeline Core Customization 3 H O R I Z O N S O F D E V E L O P M E N T PolyOne Corporation 12 Incremental development from existing base of technology New development adjacent to current technology New technology development outside of and with our current base Service adjacent markets and customers Create new markets, target new customer needs Service existing markets and customers Market Technical I N N O V A T I O N Non-Halogen Flame Retardants Barrier Technologies Fiber Colorants Advanced Composites Thermoplastic Elastomers Gordon Composites/ Polystrand – Composites GLS – Thermoplastic Elastomers ColorMatrix – Liquid Color & Additives I N N O V A T I O N P I P E L I N E PolyOne Corporation 13 PrototypeFrame Opportunity Scale-up & Test Market Build Business Case Commercial Launch (since 2015) Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 6 2 2 36 5 13 4 6 7 Breakthrough Platform Derivative Number of Projects 33 17 20 15 5 90 Total Addressable Market ($ millions) - - $800 $1,400 $600 $2,800 F L A M E R E T A R D A N T P O L Y M E R S A D V A N C E D C O M P O S I T E S B A R R I E R M A T E R I A L S C O L O R A N T T E C H N O L O G I E S T H E R M O P L A S T I C E L A S T O M E R S A U N I Q U E C U S T O M E R E X P E R I E N C E Industrial Design IQ DESIGN LABS PolyOne Corporation 14 Launched in 2014, IQ Design Labs is our in-house industrial design team that focuses on material selection and processing expertise to help with problem solving, enabling our clients to develop higher performance products. T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y Growing leadership position in attractive markets Innovation, technology and service are differentiators Capital management is a strength: Record-setting cash generation to continue for years Expand ROIC while increasing invested capital Proven acquisition strategy with robust pipeline Commercial investments are fueling momentum and generating organic growth SEGMENT HIGHLIGHTS PolyOne Corporation 17 C O L O R , A D D I T I V E S & I N K S PolyOne Corporation 18 Solid Colorants Performance Additives Screen Printing Inks Liquid Colorants 27% 14% Textiles Building & Electrical & Operating Income & MarginRevenue by Region C O L O R , A D D I T I V E S & I N K S 2 0 1 7 R E V E N U E | $ 8 9 3 M I L L I O N $4 $25 $104 $139 0.9% 5.5% 12.2% 15.5% 16.0% 18.0% 100 110 120 130 140 150 PolyOne Corporation 19 32% 46% 1% Mexico Brazil 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 PolyOne Corporation 20 Engineered Formulations Advanced Composites Thermoplastic Elastomers 20% 19% Electrical & 13% Building & 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 Revenue by Region Operating Income & Margin 2 0 1 7 R E V E N U E | $ 6 2 4 M I L L I O N PolyOne Corporation 21 $21 $57 $78 0.1% 5.1% 9.3% 12.5% 28% 48% 22% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S PolyOne Corporation 22 Specialty Vinyl Solutions Healthcare Formulations Smart Device Materials Flame Retardant Polymers Building & 30% 15%Appliance Electrical & 1% Mexico 77% Latin America P E R F O R M A N C E P R O D U C T S & S O L U T I O N S Operating Income & MarginRevenue by Region 2 0 1 7 R E V E N U E | $ 7 2 1 M I L L I O N $40 $33 $56 $77 4.6% 3.6% 7.2% 10.7% 16.0% 0 100 PolyOne Corporation 23 D I S T R I B U T I O N E N D M A R K E T S & S U P P L I E R S PolyOne Corporation 24 23% Healthcare 22% Electrical & Building & $20 $25 $63 $73 2.9% 5.9% 6.3% 1.0% 3.0% 5.0% 7.0% 15 25 35 45 55 65 75 Operating Income & Margin 2017 Revenue | $1.2 Billion http://www.avient.com/Pages/VariationRoot.aspx http://www.avient.com/Pages/VariationRoot.aspx T A R G E T E N D M A R K E T S & A P P L I C A T I O N E X A M P L E S PolyOne Corporation 25 Thermally Conductive Chemical Resistant Polymer Colorants Elastomeric Grips and Handles Structural Composites Antimicrobial Technologies Anti-Counterfeiting Target End Markets… Healthcare Catheter Technologies Under-hood Components Target End Markets… Automotive Interior Structural Sound & Vibration Management Roof Systems Air Management Electronics and Cameras Lighting Exterior / Interior Trim Braces & Brackets Fasteners Seals & Flaps Target End Markets… Consumer Thermally Conductive Polymer Colorants Elastomeric Grips and Handles Structural Composite Oxygen Scavenger Laser Marking Additives Antistatic Technologies UV Light Barrier Technologies Cap & Closure Colorants Process Optimization Antioxidant Technologies Density Modified Target End Markets… Packaging Impart weight, sound and metallic finish to caps and closures for cosmetics and spirits applications Elevate quality and prestige perceptions among high-end consumers Eliminate time and cost associated with secondary operations and assembly Luxury Packaging GravitechTM Density Modified Polymers Eliminate costs by increasing pigment density Enhance color performance without altering form and formulation Increase design capabilities by reducing weight and layer thickness Optimize Color Usage OnColorTM Super Concentrates Inhibit microbial growth on polymer surfaces Enhance value or products and devices Highly versatile concentrate with the ability to be incorporated into a wide variety of products Combat Bacteria Formation WithStandTM Antimicrobial Technology Durable, long-lasting products stand up to the most aggressive disinfectants Minimize environmental stress cracking and discoloration One of the broadest medically approved polymer and colorant portfolios Medical Device Housings Chemically Resistant Engineered Polymers Color & Design Services Greater control of color development and supply chain Work across entire design process from concept to commercialization Inspire creativity in the use of polymer materials, colors, and effects Innovative brand differentiation Faster development timelines Outdoor Applications Leading provider of high performance specialty materials for the recreational and sports & leisure industry Well positioned across all segments to address market needs Metal to Polymer Conversion Lightweighting Thermal Management Impact Performance ColorMatrix Fiber Colorant Solutions Proprietary advanced liquid color formulations and equipment enable greater efficiency and productivity Eliminates aqueous dyeing and its associated wastewater treatment Solid Color Concentrates Extrusion-spun fibers colored via solid masterbatch Fiber Colorants High flame retardancy to meet strict UL standards Greater processing and design flexibility Specialized additives provide long term color stability Diffusive lens materials improve light dispersion Smart Home Devices ResilienceTM Vinyl Solutions 1 Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to PolyOne common shareholders, adjusted earnings per share (EPS) attributable to PolyOne common shareholders and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to assess performance and allocate resources because senior management believes that these measures are useful in understanding current profitability levels and that current levels may serve as a base for future performance.