https://www.avient.com/sites/default/files/2020-07/giuseppedisalvo_0.pdf
He joined Avient in 2011 as assistant controller and later served as director, finance for the company’s Global Color, Additives & Inks business segment.
https://www.avient.com/sites/default/files/2022-09/Avient Pro Forma Financial Information.pdf
Additionally, Adjusted EPS excludes the impact of special items and amortization expense associated with intangible assets. 2 PRO FORMA 2021 TO 2022 BRIDGE 3 2021 EPS from Continuing Operations 1.69$ Pro Forma & Special Items 1.33 Proforma 2021 Adjusted EPS 3.02$ FX Impact (0.22) China Lockdowns / Russia Import Sales (0.24) Outdoor High Performance (0.13) Dyneema 0.06 Color, Additives and Inks 0.38 Legacy Specialty Engineered Materials 0.22 Other 0.01 Proforma 2022 Adjusted EPS 3.10$ COLOR, ADDITIVES AND INKS 7% (4%) (9%) 6% (10%) 0% 1% 2% 7% 10% 4% (3%) 12% (6%) 5% 6% 9% 610 650 624 649 587 565 581 526 2,402 2,390 589 650 589 649 543 565 545 526 2,266 2,390 116 121 112 119 93 95 88 79 409 414 113 121 106 119 87 95 84 79 390 414 10% 4 (1%) PRO FORMA SPECIALTY ENGINEERED MATERIALS 16%8% (8%) (8%) 3% (6%) (6%) (2%) 2% 20%12% (1%) (2%) 5% (1%) (2%) 3% 6% 314 338 348 343 325 300 321 295 1,308 1,276 303 338 329 343 303 300 301 295 1,236 1,276 67 78 75 77 70 66 66 62 278 283 65 78 73 77 67 66 63 62 268 283 5 Constant Currency Adjusted EPS Adjusted EPS PRO FORMA AVIENT 10% (3%) (21%) 3% 9% 5% 7% (5%) (9%) (1%) (1%) (12%) 1% 17% 8% (14%) 11% 14% 10% 11% 2% (3%) 5% 8% (5%) 7% 925 987 973 992 912 867 902 823 3,712 3,669 893 987 919 992 847 867 845 823 3,504 3,669 161 176 164 172 142 141 133 117 600 606 155 176 157 172 131 141 123 117 566 6068% 2% 0.84 0.98 0.87 0.96 0.70 0.68 0.61 0.48 3.02 3.10 0.79 0.98 0.82 0.96 0.63 0.68 0.56 0.48 2.80 3.10 17% 24% 6 2022年3月31日 2021年3月31日 Net income from continuing operations $ 64.7 $ 60.4 Net income attributable to noncontrolling interests (0.3) (0.4) Net income from continuing operations attributable to Avient shareholders $ 64.4 $ 0.70 $ 60.0 $ 0.65 Special items, after tax $ 6.4 $ 0.07 $ 2.6 $ 0.03 APM pro forma adjustments 2.6 0.03 (3.1) (0.03) Amortization expense, after tax 17.4 0.19 17.9 0.19 Adjusted pro forma net income / EPS $ 90.8 $ 0.98 $ 77.4 $ 0.84 Weighted average diluted shares 92.3 92.2 2022年6月30日 2021年6月30日 Net income from continuing operations $ 62.8 $ 50.2 Net income attributable to noncontrolling interests — (0.6) Net income from continuing operations attributable to Avient shareholders $ 62.8 $ 0.68 $ 49.6 $ 0.54 Special items, after tax $ 3.2 $ 0.03 $ 11.7 $ 0.13 APM pro forma adjustments 5.2 0.06 1.4 0.02 Amortization expense, after tax 17.2 0.19 17.8 0.19 Adjusted pro forma net income / EPS $ 88.4 $ 0.96 $ 80.5 $ 0.87 Weighted average diluted shares 92.1 92.4 2021年9月30日 Reconciliation to Condensed Consolidated Statements of Income Avient EPS Net income from continuing operations $ 33.4 Net income attributable to noncontrolling interests 0.3 Net income from continuing operations attributable to Avient shareholders $ 33.7 $ 0.37 Special items, after tax $ 11.7 $ 0.13 APM pro forma adjustments 1.5 0.02 Amortization expense, after tax 17.6 0.19 Adjusted pro forma net income / EPS $ 64.5 $ 0.70 Weighted average diluted shares 92.2 Adjusted EPS may not recalculate due to rounding. 1 2021年12月31日 Year Ended 2021年12月31日 Net income from continuing operations $ 11.2 $ 155.2 Net income attributable to noncontrolling interests 0.9 0.2 Net income from continuing operations attributable to Avient shareholders $ 12.1 $ 0.13 $ 155.4 $ 1.69 Special items, after tax $ 24.0 $ 0.26 $ 50.0 $ 0.54 APM pro forma adjustments 2.5 0.03 1.6 0.02 Amortization expense, after tax 17.8 0.19 71.1 0.77 Adjusted pro forma net income / EPS $ 56.4 $ 0.61 $ 278.1 $ 3.02 Weighted average diluted shares 92.4 92.1 Reconciliation of Color, Additives and Inks EBITDA Operating Income 88.8 86.3 66.8 61.2 303.1 94.5 93.6 Depreciation and amortization 27.4 25.3 26.6 26.4 105.7 26.0 25.9 EBITDA $ 116.2 $ 111.6 $ 93.4 $ 87.6 $ 408.8 $ 120.5 $ 119.5 Q1 2021 Q2 2021 Q3 2021 Pro forma Pro forma Pro forma Pro forma Pro forma Pro forma Operating Income 32.6 9.1 41.7 35.8 13.9 49.7 30.0 15.2 45.2 Depreciation and amortization 7.8 17.5 25.3 8.1 17.3 25.4 7.9 17.1 25.0 EBITDA $ 40.4 $ 26.6 $ 67.0 $ 43.9 $ 31.2 $ 75.1 $ 37.9 $ 32.3 $ 70.2 Q4 2021 YTD 2021 Pro forma Pro forma Pro forma Pro forma Operating Income 27.1 11.7 38.8 125.5 49.9 175.4 Depreciation and amortization 8.0 18.9 26.9 31.8 70.8 102.6 EBITDA $ 35.1 $ 30.6 $ 65.7 $ 157.3 $ 120.7 $ 278.0 2 Q1 2022 Q2 2022 Pro forma Pro forma Pro forma Pro forma Operating Income 38.3 15.4 53.7 35.2 17.7 52.9 Depreciation and amortization 7.8 16.6 24.4 7.7 16.6 24.3 EBITDA $ 46.1 $ 32.0 $ 78.1 $ 42.9 $ 34.3 $ 77.2 Q1 2021 Q2 2021 Q3 2021 Pro forma Pro forma Pro forma Pro forma Pro forma Pro forma Net income from continuing operations 60.4 (3.1) 57.3 50.2 1.4 51.6 33.4 1.5 34.9 Income tax expense 16.3 1.1 17.4 13.8 1.3 15.1 2.0 2.5 4.5 Interest expense 19.3 11.1 30.4 19.5 11.2 30.7 19.0 11.2 30.2 Depreciation and amortization 36.9 17.5 54.4 33.6 17.3 50.9 36.6 17.1 53.7 EBITDA 132.9 26.6 159.5 117.1 31.2 148.3 91.0 32.3 123.3 Special items, before tax 2.4 — 2.4 14.2 — 14.2 19.9 — 19.9 Depreciation included in special items (0.6) — (0.6) 1.4 — 1.4 (0.9) — (0.9) Adjusted EBITDA $ 134.7 $ 26.6 $ 161.3 $ 132.7 $ 31.2 $ 163.9 $ 110.0 $ 32.3 $ 142.3 Q4 2021 YTD 2021 Pro forma Pro forma Pro forma Pro forma Net income from continuing operations 11.2 2.5 13.7 155.2 1.6 156.8 Income tax expense 16.2 (1.9) 14.3 48.3 3.7 52.0 Interest expense 17.5 11.1 28.6 75.3 44.6 119.9 Depreciation and amortization 37.9 18.9 56.8 145.0 70.8 215.8 EBITDA 82.8 30.6 113.4 423.8 120.7 544.5 Special items, before tax 20.6 — 20.6 57.1 — 57.1 Depreciation included in special items (1.6) — (1.6) (1.7) — (1.7) Adjusted EBITDA $ 101.8 $ 30.6 $ 132.4 $ 479.2 $ 120.7 $ 599.9 3 Q1 2022 Q2 2022 Pro forma Pro forma Pro forma Pro forma Net income from continuing operations 64.7 2.6 67.3 62.8 5.2 68.0 Income tax expense 20.0 1.7 21.7 22.7 1.4 24.1 Interest expense 16.9 11.1 28.0 16.2 11.1 27.3 Depreciation and amortization 37.6 16.6 54.2 36.3 16.6 52.9 EBITDA 139.2 32.0 171.2 138.0 34.3 172.3 Special items, before tax 6.6 — 6.6 0.9 — 0.9 Depreciation included in special items (2.1) — (2.1) (1.1) — (1.1) Adjusted EBITDA $ 143.7 $ 32.0 $ 175.7 $ 137.8 $ 34.3 $ 172.1 Reconciliation of Specialty Engineered Pro Forma Sales Sales 214.7 238.9 231.7 226.3 911.6 243.1 242.3 Pro forma APM 98.9 108.8 93.8 94.9 396.4 94.8 100.5 Pro forma sales $ 313.6 $ 347.7 $ 325.5 $ 321.2 $ 1,308.0 $ 337.9 $ 342.8 Reconciliation of Avient Pro Forma Sales Sales 826.0 864.5 818.0 807.1 3,315.6 892.2 891.0 Pro forma APM 98.9 108.8 93.8 94.9 396.4 94.8 100.5 Pro forma sales $ 924.9 $ 973.3 $ 911.8 $ 902.0 $ 3,712.0 $ 987.0 $ 991.5 4 IR Slides V17 - 9.26 324pm IR Deck - AVNT-2022.09.27 Pre Release v2
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520BOAML%2520Basic%2520Materials%2520Conference%2520w%2520non-GAAP%252012%252011%25202014.pdf
S&P 500 -150% -50% 50% 150% 250% 350% 450% 550% POL S&P 500 All time high of $43.34 July 1st, 2014 PolyOne Corporation Page 9 2006 2014 YTD 2015 “Where we were” “Where we are” Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 14.9% 12 – 16% Global Specialty Engineered Materials 1.1% 12.1% 12 – 16% Designed Structures & Solutions -- 7.6% 8 – 10% Performance Products & Solutions 5.5% 8.1% 9 – 12% Distribution 2.6% 6.2% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 65% 65 – 75% 3) ROIC* 5.0% 10.6% 15% 4) Adjusted EPS Growth N/A 37% Double Digit Expansion Proof of Performance & 2015 Goals *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period PolyOne Corporation Page 10 32% Adjusted EPS CAGR from 2011 2015 EPS: $2.50 2011 EPS: $0.82 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 Growth PolyOne Corporation Page 11 Innovation Drives Earnings Growth *Percentage of Specialty Platform revenue from products introduced in last five years $20 $53 2006 2013 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 31% 2006 2013 Specialty Platform Gross Margin % 20% 43% 2006 2013 Specialty Vitality Index Target ≥ 35% Vitality Products + 700 to 1000 bps PolyOne Corporation Page 12 Prototype Frame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 4 11 5 10 6 9 3 4 2 15 9 1 10 4 Breakthrough Platform Derivative A Rich Pipeline of Opportunity Number of Projects 25 14 19 17 18 93 Addressable Market ($ millions) TBD TBD $800 $450 $450 $1,700 PolyOne Corporation Page 13 Megatrends Aligned with Key End Markets Decreasing Dependence on Fossil Fuels Protecting the Environment Improving Health and Wellness Megatrend End Markets Globalizing and Localizing Health & Wellness Transportation Packaging Consumer PolyOne Corporation Page 14 60% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2014 Pension Funding** As of 2014年9月30日 Debt Maturities & Pension Funding – 9/30/14 Net Debt / EBITDA* = 1.7x $48 $317 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Debt Maturities As of 2014年9月30日 ($ millions) Coupon Rates: 7.500% 7.375% 5.250% ** includes US-qualified pension plans only *TTM 9/30/2014 PolyOne Corporation Page 15 Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return Expanding our sales, marketing, and technical capabilities Targets that expand our: • Specialty offerings • End market presence • Geographic footprint • Operating Margin Synergy opportunities Adjacent material solutions Repurchased 1.5 million shares in Q3 2014 Repurchased 9.7 million shares since early 2013 10.3 million shares are available for repurchase under the current authorization Organic Growth Acquisitions Share Repurchases Dividends Investing in operational and LSS initiatives (including synergy capture) Manufacturing alignment $0.16 $0.20 $0.24 $0.32 $0.40 $0.10 $0.20 $0.30 $0.40 $0.50 2011 2012 2013 2014 2015 Annual Dividend PolyOne Corporation Page 16 PolyOne Core Values Innovation Collaboration Excellence PolyOne Corporation Page 17 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne? Platform operating income mix percentage 2005Y* 2008Y* 2010Y* 2013Y YTD Global Color, Additives and Inks $ 4.3 $ 28.1 $ 37.7 $ 104.0 $ 98.2 Global Specialty Engineered Materials 0.4 17.6 49.7 57.2 55.6 Designed Structures and Solutions - - - 33.4 37.2 Specialty Platform $ 4.7 $ 45.7 $ 87.4 $ 194.6 $ 191.0 Performance Products and Solutions 75.7 31.3 54.0 56.0 51.4 Distribution 19.5 28.1 42.0 63.3 53.2 Joint ventures 91.9 28.6 18.9 - - Corporate and eliminations (51.5) (425.1) (27.7) (82.4) (126.2) Operating income (loss) GAAP $ 140.3 $ (291.4) $ 174.6 $ 231.5 $ 169.4 Less: Corporate operating expense 51.5 425.1 27.7 82.4 126.2 Operating income excluding Corporate $ 191.8 $ 133.7 $ 202.3 $ 313.9 $ 295.6 Specialty platform operating mix percentage 2% 34% 43% 62% 65% * Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment. Appendix Q3 2014 Financial Highlights At a Glance�Global Color, Additives and Inks At a Glance�Global Specialty Engineered Materials At a Glance�Designed Structures and Solutions At a Glance�Performance Products and Solutions At a Glance�Distribution Plastics: Key to Future Sustainable Development Commitment to Operational Excellence Application Examples Slide Number 28 Anti-Counterfeiting Solutions 2012 Range Rover Evoque Interior Slide Number 31 Metal Replacement Solutions Next Generation Solar Charger High-Barrier Packaging Containers Aerospace Applications Non GAAP Rec - 11 5 14.pdf Sidoti & Company non-GAAP Rec
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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 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 5 2016 Revenue ($3.3 Billion) by Segment At a Glance United States 65% Europe 12% Canada 8% Asia 8% Latin America 7% $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.13 2009 2010 2011 2012 2013 2014 2015 2016 2016 Revenue by Geography 2016 Revenue by End Market Appliance 5% Building & Construction 11% Consumer 11% Electrical & Electronics 5% Healthcare 11% Industrial 15% Packaging 12% Textiles 2% Transportation 19% Wire & Cable 9% Adjusted Earnings Per Share Performance Products & Solutions 19% PolyOne Distribution 31% Designed Structures & Solutions 11% Specialty Engineered Materials 16% Color Additives and Inks 23% 6 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 $850 million to shareholders $150 million returned through dividends $697 million returned through share repurchases $697M $0 $150 $300 $450 $600 $750 2011 2012 2013 2014 2015 2016 Cumulative Share Repurchases (in millions) *Initiated in 2011 7 POLYONE CORPORATION 2% 43% 79% 0% 20% 40% 60% 80% 100% 2005 2010 2016 % o f O pe ra tin g In co m e* *Operating Income excludes corporate charges and special items Specialty OI $5M $87M $273M Mix Shift Highlights Specialty Transformation Specialty = ROS > 10% JV’s Performance Products & Solutions Specialty Distribution 8 POLYONE CORPORATION 2006 2016 2020 “Where we were” “Where we are” Platinum Vision Operating Income % of Sales Color, Additives & Inks 1.7% 16.0% 20%+ Specialty Engineered Materials 1.1% 14.3% 20%+ Performance Products & Solutions 5.5% 11.1% 12 – 14% Distribution 2.6% 6.4% 6.5 – 7.5% Designed Structures & Solutions N/A -0.9% 8 – 10% ROIC* 5.0% 12.9% 15% Proof of Performance & 2020 Platinum Vision *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 Consistently Deliver Double Digit Annual EPS Growth POLYONE CORPORATION 9 2,883 2,538 2006 2016 Volume (lbs in millions) -12% $103 $200 2006 2016 Commercial, R&D and Marketing Spending ($M) +95% $88 $317 2006 2016 Adjusted Operating Profit ($M) +263% Ours is Not a Cost Cutting Story 10 POLYONE CORPORATION Innovation Drives Earnings Growth *Specialty Platform revenue from products introduced in last five years $20 $54 2006 2016 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 33% 2006 2016 CAI & SEM Gross Margin 12% 42% 2006 2016 Target ≥ 35% Innovation Pipeline Potential 11 POLYONE CORPORATION Primary Industries Served 2016 Revenue: $3.3 Billion Electrical & Electronic 5% Building & Construction 11% Appliance 5% Industrial 15% Wire & Cable 9% Healthcare 11% Consumer 11% Packaging 12% Transportation 19% Focus End Markets 12 POLYONE CORPORATION Therma-Tech™ & Sheet GEON™ Vinyl Polymer Colorants Therma-Tech™ TPE’s & Film TPE + OnForce™ Gravi-Tech™ Page 12 Film Target End Markets… Healthcare 13 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 14 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 15 POLYONE CORPORATION Source: Outdoor Industry Association TPE Vibration Dampening (SEM/GLS) TPE + OnForce (SEM) OnForce (SEM) Advanced Composites (SEM) TPE Vibration Dampening (SEM/GLS) 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) Target End Markets… Consumer 16 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 ~60 - 70% of capital expenditures fund growth initiatives Organic Growth Acquisitions Share Repurchases Dividends Targets that expand our: • Specialty offerings • End market presence • Geographic breadth Growth synergies Adjacent material solutions Repurchased 1.2 million shares in Q4 2016 Repurchased 18.8 million shares since early 2013 8.5 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 POLYONE CORPORATION 17 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne? Addressable market exceeds $40 billion Strong performance demonstrates that our strategy and execution are working Megatrends and emerging opportunities align with strengths Innovation and services provide differentiation, incremental pricing power and competitive advantage Strategic balance between reinvestment for growth and returning cash to shareholders Strong and proven management team driving growth and performance 18 POLYONE CORPORATION Segment Highlights POLYONE CORPORATION 19 2016 Revenue: $0.8 Billion At a Glance: Color, Additives & Inks Key Applications 2016 Revenue by Industry Expanding Profits 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 14.7% 16.7% 16.0% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2020 Operating Income % of Sales Platinum Vision United States 45% Europe 33% Asia 15% Latin America 5% Canada 2% Packaging 30% Industrial 15% W & C 10% B & C 10% Textiles 9% Transportation 9% Consumer 7% Healthcare 6% Appliance 2% E & E 2% POLYONE CORPORATION 20 2016 Revenue: $0.6 Billion At a Glance: Specialty Engineered Materials 2016 Revenue by Industry Expanding Profits 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 12.1% 14.7% 14.3% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2020 Operating Income % of Sales Platinum Vision Consumer 19% Transportation 19% E & E 15% W & C 15% Healthcare 11% Industrial 8% Packaging 7% Appliance 3% B & C 3% United States 51% Europe 27% Asia 20% Canada 2% Key Applications POLYONE CORPORATION 21 2016 Revenue: $0.4 Billion At a Glance: Designed Structures & Solutions 2016 Revenue by Industry Expanding Profits 1.4% 5.6% 7.3% 3.0% 8-10% -0.9% 2012 2013 2014 2015 2016 2020 Operating Income % of Sales Platinum Vision Transportation 27% Industrial 21% Packaging 21% B & C 11% Healthcare 8% Consumer 8% Appliance 3% E & E 1% Key Applications United States 95% Canada 5% http://www.google.com/url? Segment Highlights At a Glance: Color, Additives & Inks At a Glance: Specialty Engineered Materials At a Glance: Designed Structures & Solutions At a Glance: Performance Products & Solutions At a Glance: Distribution Application Examples Luxury Packaging�with Gravitech Density Modified Polymers Optimize Color Usage�with OnColor Super Concentrates Combat Bacteria Formation�with WithStand Antimicrobial Technology Medical Device Housings�with Chemically Resistant Engineered Polymers Color & Design Services Outdoor Applications Fiber Colorants�Solutions for clothing, apparel, footwear, automotive & sporting goods High-Barrier Packaging Containers Investor Presentation - January 2017 r14 Investor Presentation - January 2017
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Goldman%2520Basic%2520Materials%2520Conference.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 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 5 2016 Revenue ($3.3 Billion) by Segment At a Glance United States 65% Canada 8% Europe 12% Asia 8% Latin America 7% $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.13 2009 2010 2011 2012 2013 2014 2015 2016 2016 Revenue by Geography 2016 Revenue by End Market Appliance 5% Building & Construction 11% Industrial 15% Electrical & Electronics 5% Consumer 11% Healthcare 11% Packaging 12% Textiles 2% Transportation 19% Wire & Cable 9% Adjusted Earnings Per Share Performance Products & Solutions 19% PolyOne Distribution 31% Designed Structures & Solutions 11% Specialty Engineered Materials 16% Color Additives and Inks 23% 6 POLYONE CORPORATION 2% 43% 80% 0% 20% 40% 60% 80% 100% 2005 2010 1Q 2017 % o f O pe ra tin g In co m e* *Operating Income excludes corporate charges and special items **LTM 1Q 2017 Specialty OI $5M $87M $274M** Mix Shift Highlights Specialty Transformation JV’s Performance Products & Solutions Specialty Mix Distribution 7 POLYONE CORPORATION 2006 1Q 2017 2020 “Where we were” “Where we are” Platinum Vision Operating Income % of Sales Color, Additives & Inks 1.7% 16.6% 20%+ Specialty Engineered Materials 1.1% 14.8% 20%+ Performance Products & Solutions 5.5% 12.0% 12 – 14% Distribution 2.6% 6.5% 6.5 – 7.5% Designed Structures & Solutions N/A -3.2% 8 – 10% ROIC* 5.0% 12.6% 15% Proof of Performance & 2020 Platinum Vision *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 Consistently Deliver Double Digit Annual EPS Growth 8 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 $900 million to shareholders $167 million returned through dividends $731 million returned through share repurchases *Initiated in 2011 $0 $150 $300 $450 $600 $750 2011 2012 2013 2014 2015 2016 1Q 2017 Cumulative Share Repurchases (in millions) $731M 9 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 ~60 - 70% of capital expenditures fund growth initiatives Organic Growth Acquisitions Share Repurchases Dividends Targets that expand our: • Specialty offerings • End market presence • Geographic breadth Growth synergies Adjacent material solutions Repurchased 1.0 million shares in Q1 2017 Repurchased 19.8 million shares since early 2013 7.5 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 POLYONE CORPORATION 10 2,883 2,538 2006 2016 Volume (lbs in millions) -12% $103 $200 2006 2016 Commercial, R&D and Marketing Spending ($M) +95% $88 $317 2006 2016 Adjusted Operating Profit ($M) +263% Ours is Not a Cost Cutting Story 11 POLYONE CORPORATION Primary Industries Served 2016 Revenue: $3.3 Billion Appliance 5% Electrical & Electronic 5% Building & Construction 11% Industrial 15% Wire & Cable 9% Healthcare 11% Consumer 11% Packaging 12% Transportation 19% Focus End Markets 12 POLYONE CORPORATION Innovation Drives Earnings Growth *Specialty Platform revenue from products introduced in last five years $20 $54 2006 2016 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 33% 2006 2016 CAI & SEM Gross Margin 12% 42% 2006 2016 Target ≥ 35% Innovation Pipeline Potential POLYONE CORPORATION 13 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne? Addressable market exceeds $40 billion Strong performance demonstrates that our strategy and execution are working Megatrends and emerging opportunities align with strengths Innovation and services provide differentiation, incremental pricing power and competitive advantage Strategic balance between reinvestment for growth and returning cash to shareholders Strong and proven management team driving growth and performance 14 POLYONE CORPORATION Segment Highlights POLYONE CORPORATION 15 2016 Revenue: $0.8 Billion At a Glance: Color, Additives & Inks Key Applications 2016 Revenue by Industry Expanding Profits 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 14.7% 16.7% 16.0% 20%+ 16.6% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q 2017 2020 Operating Income % of Sales United States 45% Europe 33% Asia 15% Latin America 5% Canada 2% Packaging 30% Industrial 15% W & C 10% B & C 10% Textiles 9% Transportation 9% Consumer 7% Healthcare 6% Appliance 2% E & E 2% Platinum Vision POLYONE CORPORATION 16 2016 Revenue: $0.6 Billion At a Glance: Specialty Engineered Materials 2016 Revenue by Industry Expanding Profits 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 12.1% 14.7% 14.3% 20%+ 14.8% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q 2017 2020 Operating Income % of Sales Consumer 19% Transportation 19% E & E 15% W & C 15% Healthcare 11% Industrial 8% Packaging 7% Appliance 3% B & C 3% United States 51% Europe 27% Asia 20% Canada 2% Key Applications Platinum Vision POLYONE CORPORATION 17 2016 Revenue: $0.4 Billion At a Glance: Designed Structures & Solutions 2016 Revenue by Industry 2020 Platinum Vision Transportation 27% Industrial 21% Packaging 21% B & C 11% Healthcare 8% Consumer 8% Appliance 3% E & E 1% Key Applications United States 95% Canada 5% Drive operational efficiency with LSS projects and customer first mentality Recapture customers by leveraging PolyOne’s commercial excellence and service offerings 2020 Operating Margin: 8 – 10% http://www.google.com/url? Segment Highlights At a Glance: Color, Additives & Inks At a Glance: Specialty Engineered Materials At a Glance: Designed Structures & Solutions At a Glance: Performance Products & Solutions At a Glance: Distribution Target End Markets &�Application Examples Slide Number 21 Slide Number 22 Slide Number 23 Slide Number 24 Luxury Packaging�with Gravitech Density Modified Polymers Optimize Color Usage�with OnColor Super Concentrates Combat Bacteria Formation�with WithStand Antimicrobial Technology Medical Device Housings�with Chemically Resistant Engineered Polymers Color & Design Services Outdoor Applications Fiber Colorants�Solutions for clothing, apparel, footwear, automotive & sporting goods High-Barrier Packaging Containers Smart Home Devices�with Resilience Vinyl Solutions Investor Presentation Non-GAAP Rec - May 2017 r2 Investor Presentation - May 2017
https://www.avient.com/sites/default/files/resources/Innovation_Day_-_May_2014_0.pdf
Van Hulle Senior Vice President, President of Global Color Additives and Inks Robert M. S&P 500 All time high of $39.55 May 13th, 2014 PolyOne Corporation Page 12 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* 5.0% 9.4% 15% 4) Adjusted EPS Growth N/A 42% Double Digit Expansion Proof of Performance & 2015 Goals *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period PolyOne Corporation Page 13 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 PolyOne Corporation Page 14 Financial Highlights Bradley C. Van Hulle Global Color Additives and Inks Percept™ Authentication Technologies 2) Security and Safety Solutions Julie A.
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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. Segment highlights COLOR, ADDITIVES & INKS Color, Additives & Inks Specialty Engineered Materials Specialty Engineered Materials Performance Products & Solutions Performance Products & Solutions DISTRIBUTION Target end markets & �application examples Slide Number 26 Slide Number 27 Slide Number 28 Slide Number 29 Slide Number 30 Slide Number 31 Slide Number 32 Slide Number 33 Slide Number 34 Slide Number 35 Slide Number 36 Slide Number 37 Investor Presentation - March 2018 r4.pdf Investor Presentation - March 2018
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Addressable market exceeds $40 billion Strong performance demonstrates that our strategy and execution are working Megatrends and emerging opportunities align with our strengths Innovation and services provide differentiation, incremental pricing power, and competitive advantage Strong and proven management team driving growth and performance PolyOne Corporation Page 17 Appendix PolyOne Corporation Page 18 $0.20 $0.28 $0.36 $0.49 $0.54 $0.00 $0.15 $0.30 $0.45 $0.60 Q3'11 Q3'12 Q3'13 Q3'14 Q3'15 Adjusted EPS Q3 2015 Financial Highlights Color Additives & Inks operating margin reaches record third quarter level of 17.3% Specialty Engineered Materials operating margin grew 210 basis points year-over-year to 14.7% Third quarter adjusted EPS has grown on average 28% per year since 2011 $13 $19 $29 $30 $35 $0 $10 $20 $30 $40 Q3'11 Q3'12 Q3'13 Q3'14 Q3'15 GCAI Operating Profit $11 $13 $15 $18 $20 $10 $14 $18 $22 Q3'11 Q3'12 Q3'13 Q3'14 Q3'15 GSEM Operating Profit Note: $ in millions, except per share data PolyOne Corporation Page 19 Building & 7% Electrical & 1% 31% Textiles 7% 12% 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 17.2% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD 2015 2020 Operating Income % of Sales At a Glance Global Color, Additives and Inks 2014 Revenues: $0.9 Billion Solutions Expanding Profits 2014 Revenue by Industry Segment 14.7% Platinum Vision 44% 36% PolyOne Corporation Page 20 4% Building & 18% Electrical & 16% At a Glance Global Specialty Engineered Materials 2014 Revenues: $0.6 Billion Solutions 2014 Revenue by Industry Segment Expanding Profits 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 15.1% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD 2015 2020 Operating Income % of Sales Platinum Vision 12.1% 44% 33% 19% PolyOne Corporation Page 21 2% Building & 23% 27% 30% 96% At a Glance Designed Structures and Solutions Solutions 2014 Revenues: $0.6 Billion Expanding Profits 2014 Revenue by Industry Segment 1.4% 5.6% 7.3% 3.5% 12-14% 2012 2013 2014 YTD 2015 2020 Operating Income % of Sales Platinum Vision PolyOne Corporation Page 22 Building & 33% 5% Electrical & 1% 11% 18% 16% 5.5% 6.9% 3.8% 3.6% 5.5% 4.3% 6.3% 7.2% 8.1% 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD 2015 2020 Operating Income % of Sales At a Glance Performance Products and Solutions Solutions Expanding Profits 2014 Revenues: $0.8 Billion 10-12% Platinum Vision 2014 Revenue by Industry Segment 7.7% PolyOne Corporation Page 23 Building & 13% Electrical & 23% 15% 25% 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% 6.4% 5.9% 6.6% 6.5-7.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD 2015 2020 Operating Income % of Sales 15% 52% 2006 Q3 2015 At a Glance Distribution Key Suppliers 2014 Revenues: $1.1 Billion ROIC Expanding Profits 6.1% Platinum Vision http://www.avient.com/Pages/VariationRoot.aspx PolyOne Corporation Page 24 2 lbs Plastic = 3 lbs aluminum or 8 lbs steel or 27 lbs glass 33% less material by weight than aluminum 75% less material by weight than steel 93% less material by weight than glass Requires 91% less energy to recycle a pound of plastic versus a pound of paper Source: SPI: Sustainability and the Plastics Industry Plastics: Key to Future Sustainable Development PolyOne Corporation Page 25 Commitment to Operational Excellence 81% 93% 2006 2014 16.2% 9.9% 2006 2014 On-Time Delivery Working Capital % of Sales 5% 43% 2006 2014 Percent of Associates Trained in LSS Five consecutive years – CFO Magazine Best Working Capital Management in the chemical industry World’s Best Business Process Excellence Program in 2012* 113 trained Black Belts 235 trained Green Belts 151 trained Kaizen Leaders World’s Best Start-up Program for Lean Six Sigma Deployment in 2009* *Both awards received from International Quality and Productivity Center PolyOne Corporation Page 26 Application Examples PolyOne Corporation Page 27 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 Source: Outdoor Industry Association PolyOne Corporation Page 28 $1.5 billion attractive, growing market Additives improve performance and reduce cost through light-weighting, reduced waste, faster cycle times, and extended shelf life of finished product Aligned with megatrend of protecting the environment: Sustainability benefits include lower package weight and improved recyclability of package at end of use Market Opportunity Leading Global Supplier of Additives In Growing PET Market Shelf-life extension Greater product consistency Recyclability and reduced carbon footprint Color and Special Effects Weight reduction Enhanced product aesthetics High heat resistance PET Bottling Technology 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2009 2014 2019 Asia Pacific North America Latin America Western Europe Eastern Europe Middle East and Africa Global PET Packaging Growth 2009-2019 Source: Euromonitor retail off-trade consumption (PET bottles & jars, home care, personal care, food & non-alcoholic beverages) B ill io n un its 5% CAGR PolyOne Corporation Page 29 • Includes formulation and consultative services to assist manufacturers and brand owners in positively identifying their finished goods • Protects brand equity & consumer welfare • Reduces exposure to unwarranted recall expenses • Secures supply chain integrity – support for safe expansion into new geographies Authentication Technology PolyOne Corporation Page 30 • Color harmonization across 15 unique color-and-polymer combinations • Eliminated need for multiple pre- colored materials • Reduced Land Rover’s working capital 2015 Range Rover Evoque Interior PolyOne Corporation Page 31 • Reduced health and environmental impact • System cost reduction • Radiation-shielding performance • Parts consolidation • Design freedom CT Scanner PolyOne Corporation Page 32 Metal Replacement Solutions • Replaces metal in LED lighting • Extends LED durability and life span eliminating hot spots • Greater design flexibility with fewer parts • Weight reduction • Simplifies manufacturing and lowers total production cost PolyOne Corporation Page 33 High-Barrier Packaging Containers • Capability to extrude up to 13 layers • Strong oxygen and moisture vapor transmission protection • Can be made symmetrical or asymmetrical to meet customized needs of broad variety of applications • Barrier protection and superior sensory properties PolyOne Corporation Page 34 Aerospace Applications • Leading provider of specialty materials for the aerospace industry • Typical applications Mil-spec aircraft windows, canopies, windscreens, instrument panels, wingtip lenses Interior – gallery furnishings, tray tables, arm rests, trim strips, joint/edge coverings • Benefits: High impact strength Resistant to UV rays Flame and smoke compliance Easy to clean with aggressive cleaners; anti-microbial grades available Range of sizes, thicknesses, colors, etc. Platform operating income mix percentage 2005* 2008* 2010* 2013 2014 2015 YTD Global Color, Additives and Inks $ 4.3 $ 28.1 $ 37.7 $104.0 $124.9 $ 107.9 Global Specialty Engineered Materials 0.4 17.6 49.7 57.2 72.4 63.2 Designed Structures and Solutions - - - 33.4 45.1 12.0 Specialty Platform $ 4.7 $ 45.7 $ 87.4 $194.6 $242.4 $ 183.1 Performance Products and Solutions 75.7 31.3 54.0 56.0 63.1 43.9 Distribution 19.5 28.1 42.0 63.3 68.2 52.4 Joint ventures 91.9 28.6 18.9 - - — Corporate and eliminations (51.5) (425.1) (27.7) (82.4) (218.6) (59.8) Operating income (loss) GAAP $140.3 $(291.4) $174.6 $231.5 $155.1 $ 219.6 Less: Corporate operating expense 51.5 425.1 27.7 82.4 218.6 59.8 Operating income excluding Corporate $191.8 $133.7 $202.3 $313.9 $373.7 $ 279.4 Specialty platform operating mix percentage 2% 34% 43% 62% 65% 66% Adjusted EPS is calculated as follows: 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 2 Adjusted EPS 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 Net income attributable to PolyOne common shareholders $ 16.0 $ 19.4 $ 23.2 $ 32.3 $ 44.5 Special items, after tax(1) 3.1 5.3 10.5 13.2 12.6 Tax adjustments(2) (0.3) 0.1 1.8 (0.1) (9.6) Adjusted net income $ 18.8 $ 24.8 $ 35.5 $ 45.4 $ 47.5 Diluted shares 94.3 90.2 98.1 93.1 88.4 Adjusted EPS $ 0.20 $ 0.27 $ 0.36 $ 0.49 $ 0.54 * Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principal or discontinued operations Appendix Q3 2015 Financial Highlights At a Glance�Global Color, Additives and Inks At a Glance�Global Specialty Engineered Materials At a Glance�Designed Structures and Solutions At a Glance�Performance Products and Solutions At a Glance�Distribution Plastics: Key to Future Sustainable Development Commitment to Operational Excellence Application Examples Outdoor Applications Slide Number 28 Authentication Technology 2015 Range Rover Evoque Interior Slide Number 31 Metal Replacement Solutions High-Barrier Packaging Containers Aerospace Applications Baird Non GAAP Rec.pdf Baird - 2015年11月10日
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Credit%2520Suisse%2520-%2520June%25202015.pdf
S&P 500 PolyOne Corporation Page 9 2006 Q1 2015 2020 “Where we were” “Where we are” Platinum Vision 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 16.2% 20%+ Global Specialty Engineered Materials 1.1% 16.3% 20%+ Designed Structures & Solutions 1.4% (2012) 2.7% 12 – 14% Performance Products & Solutions 5.5% 6.5% 10 – 12% Distribution 2.6% 5.9% 6.5 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 69% 80%+ 3) ROIC 5.0% 11.4% 15% 4) Adjusted EPS Growth N/A 22 Consecutive Quarters of EPS Growth Double Digit Expansion Proof of Performance & 2020 Goals PolyOne Corporation Page 10 Platinum Vision: Pathway to Accelerated Growth Organic Sales Growth Margin Expansion Share Repurchases Acquisitions PolyOne Corporation Page 11 Innovation Drives Earnings Growth *Percentage of Specialty Platform revenue from products introduced in last five years $20 $53 2006 2014 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 27% 2006 2014 Specialty Platform Gross Margin % 20% 44% 2006 2014 Specialty Vitality Index Target ≥ 35% PolyOne Corporation Page 12 Megatrends Aligned with Key End Markets Decreasing Dependence on Fossil Fuels Protecting the Environment Improving Health and Wellness Megatrend End Markets Globalizing and Localizing Health & Wellness Transportation Packaging Consumer PolyOne Corporation Page 13 Prototype Frame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 6 9 7 3 5 12 5 3 2 8 4 2 4 3 1 Breakthrough Platform Derivative A Rich Pipeline of Opportunity Number of Projects 14 8 18 12 22 74 Addressable Market ($ millions) $700 $600 $600 $1,900 PolyOne Corporation Page 14 60% 98% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 Q1 2015 Pension Funding** As of 2015年3月31日 Debt Maturities & Pension Funding Net Debt / EBITDA* = 2.1x $49 $317 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Debt Maturities As of 2015年3月31日 ($ millions) Coupon Rate: 7.500% 7.375% 5.250% ** includes US-qualified pension plans only *TTM 3/31/2015 PolyOne Corporation Page 15 Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return Expanding our sales, marketing, and technical capabilities Investing in operational and LSS initiatives ~75% of capital expenditures fund growth initiatives Organic Growth Acquisitions Share Repurchases Dividends $0.16 $0.20 $0.24 $0.32 $0.40 $0.10 $0.20 $0.30 $0.40 $0.50 2011 2012 2013 2014 2015 Annual Dividend Targets that expand our: • Specialty offerings • End market presence • Geographic breadth Synergy opportunities Adjacent material solutions Repurchased over 500k shares in Q1 2015 Repurchased 11.8 million shares since early 2013 8.2 million shares are available for repurchase under the current authorization PolyOne Corporation Page 16 PolyOne Core Values Innovation Collaboration Excellence PolyOne Corporation Page 17 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne? 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 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 - - - - - - - - 33.4 45.1 3.2 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 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 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. Appendix Q1 2015 Financial Highlights At a Glance�Global Color, Additives and Inks At a Glance�Global Specialty Engineered Materials At a Glance�Designed Structures and Solutions At a Glance�Performance Products and Solutions At a Glance�Distribution Plastics: Key to Future Sustainable Development Commitment to Operational Excellence Application Examples Slide Number 28 Authentication Technology 2015 Range Rover Evoque Interior Slide Number 31 Metal Replacement Solutions Next Generation Solar Charger High-Barrier Packaging Containers Aerospace Applications Credit Suisse - June 25 2015 r2 Credit Suisse - June 25 2015
https://www.avient.com/sites/default/files/2021-04/avient-q4-earnings-and-2021-outlook-website.pdf
A reconciliation of these measures to their most directly comparable GAAP measures is provided in the tables below. 1 Reconciliation of EBITDA by Segment Year Ended 2020 2019 2020 2019 Sales: Color, Additives and Inks $ 525.8 $ 226.7 $ 1,502.9 $ 1,003.8 Specialty Engineered Materials 190.6 177.5 708.8 745.7 Distribution 305.1 272.4 1,110.3 1,192.2 Corporate and eliminations (24.5) (18.0) (79.9) (79.0) Sales $ 997.0 $ 658.6 $ 3,242.1 $ 2,862.7 Operating income: Color, Additives and Inks $ 57.5 $ 27.2 $ 180.8 $ 147.4 Specialty Engineered Materials 30.4 18.8 94.4 83.7 Distribution 18.0 17.0 69.5 75.4 Corporate and eliminations (40.9) (42.5) (155.4) (149.7) Operating Income $ 65.0 $ 20.5 $ 189.3 $ 156.8 Items Below Operating Income in Corporate: Other income, net $ 11.7 $ 10.7 $ 24.3 $ 12.1 Depreciation & amortization: Color, Additives and Inks $ 27.3 $ 10.7 $ 75.1 $ 42.7 Specialty Engineered Materials 7.4 7.0 30.0 29.5 Distribution 0.3 0.1 0.7 0.5 Corporate and eliminations 2.8 1.0 9.3 5.4 Depreciation & Amortization $ 37.8 $ 18.8 $ 115.1 $ 78.1 EBITDA: Color, Additives and Inks $ 84.8 $ 37.9 $ 255.9 $ 190.1 Specialty Engineered Materials 37.8 25.8 124.4 113.2 Distribution 18.3 17.1 70.2 75.9 Corporate and eliminations (26.4) (30.8) (121.8) (132.2) EBITDA $ 114.5 $ 50.0 $ 328.7 $ 247.0 EBITDA as a % of sales: Color, Additives and Inks 16.1 % 16.7 % 17.0 % 18.9 % Specialty Engineered Materials 19.8 % 14.5 % 17.6 % 15.2 % Distribution 6.0 % 6.3 % 6.3 % 6.4 % Corporate and eliminations nm nm nm nm Total Company 11.5 % 7.6 % 10.1 % 8.6 % nm - not meaningful Three Months Ended December 31, Year Ended December 31, Reconciliation to Adjusted EBITDA: 2020 2019 2020 2019 Net income from continuing operations – GAAP $ 74.7 $ 6.4 $ 133.8 $ 75.7 Income tax expense (17.3) 12.9 5.2 33.7 Interest expense 19.3 11.9 74.6 59.5 Depreciation and amortization from continuing operations 37.8 18.8 115.1 78.1 EBITDA $ 114.5 $ 50.0 $ 328.7 $ 247.0 Special items, before tax 4.2 15.0 66.2 61.7 Interest expense included in special items — — (10.1) — Accelerated depreciation included in special items (0.7) — (3.2) — Adjusted EBITDA $ 118.0 $ 65.0 $ 381.6 $ 308.7 Three Months Ended Reconciliation of Adjusted Earnings per Share: Avient Special Adjusted Sales $ 997.0 $ — $ 997.0 Operating income $ 65.0 $ 14.6 $ 79.6 Interest expense, net (19.3) — (19.3) Other income, net 11.7 (10.4) 1.3 Income taxes 17.3 (30.9) (13.6) Net income from continuing operations attributable to Avient shareholders $ 74.2 $ (26.7) $ 47.5 Weighted average diluted shares 92.1 Adjusted EPS - excluding special items $ 0.52 Reconciliation of Adjusted EBITDA from continuing operations: Operating income and other income, net $ 76.7 $ 4.2 $ 80.9 Depreciation and amortization 37.8 (0.7) 37.1 EBITDA from continuing operations $ 114.5 $ 3.5 $ 118.0 EBITDA as a % of sales 11.8 % 3 Three Months Ended Reconciliation of Pro Forma Adjusted Special Adjusted Clariant MB Pro Forma Pro Forma Adjusted Sales $ 658.6 $ — $ 658.6 $ 263.5 $ 922.1 Operating income $ 20.5 $ 24.6 $ 45.1 $ 13.2 $ 58.3 Interest expense, net (11.9) — (11.9) (11.1) (23.0) Other income, net 10.7 (9.6) 1.1 — 1.1 Income taxes (12.9) 4.9 (8.0) (0.5) (8.5) Net income from continuing operations attributable to Avient shareholders $ 6.4 $ 19.9 $ 26.3 $ 1.6 $ 27.9 Weighted average diluted shares 77.5 Impact to diluted shares from January 2020 equity offering 15.3 Pro forma weighted average diluted shares 92.8 Pro forma adjusted EPS $ 0.30 Reconciliation of Pro Forma Adjusted Operating income and other income, net $ 31.2 $ 15.0 $ 46.2 $ 13.2 $ 59.4 Depreciation and amortization 18.8 — 18.8 15.1 33.9 EBITDA from continuing operations $ 50.0 $ 15.0 $ 65.0 $ 28.3 $ 93.3 EBITDA as a % of sales 10.1 % Reconciliation of Pro Forma Adjusted Special Adjusted Clariant MB Pro Forma Pro Forma Adjusted Sales $ 3,242.1 $ — $ 3,242.1 $ 540.4 $ 3,782.5 Operating income $ 189.3 $ 73.7 $ 263.0 $ 45.0 $ 308.0 Interest expense, net (74.6) 10.1 (64.5) (18.1) (82.6) Other income, net 24.3 (17.6) 6.7 — 6.7 Income taxes (5.2) (41.4) (46.6) (6.2) (52.8) Net income attributable to noncontrolling interests (1.8) — (1.8) — (1.8) Net income from continuing operations attributable to Avient shareholders $ 132.0 $ 24.8 $ 156.8 $ 20.7 $ 177.5 Weighted average diluted shares 90.6 Impact to diluted shares from January 2020 equity offering 1.5 Pro forma weighted average diluted shares 92.1 Pro forma adjusted EPS $ 1.93 Reconciliation of Pro Forma Adjusted Operating income and other income, net $ 213.6 $ — $ 56.1 $ 269.7 $ 45.0 $ — $ 314.7 Depreciation and amortization 115.1 (3.2) 111.9 30.1 142.0 EBITDA from continuing operations $ 328.7 $ 52.9 $ 381.6 $ 75.1 $ 456.7 EBITDA as a % of sales 12.1 % 4 Reconciliation of Pro Forma Adjusted Special Adjusted Clariant MB Pro Forma Pro Forma Adjusted Sales $ 2,862.7 $ — $ 2,862.7 $ 1,118.6 $ 3,981.3 Operating income $ 156.8 $ 71.7 $ 228.5 $ 72.9 $ 301.4 Interest expense, net (59.5) — (59.5) (33.4) (92.9) Other income, net 12.1 (10.0) 2.1 — 2.1 Income taxes (33.7) (5.9) (39.6) (9.1) (48.7) Net income attributable to noncontrolling interests (0.2) — (0.2) — (0.2) Net income from continuing operations attributable to Avient shareholders $ 75.5 $ 55.8 $ 131.3 $ 30.4 $ 161.7 Weighted average diluted shares 77.7 Impact to diluted shares from January 2020 equity offering 15.3 Pro forma weighted average diluted shares 93.0 Pro forma adjusted EPS $ 1.74 Reconciliation of Pro Forma Adjusted Operating income and other income, net $ 168.9 $ — $ 61.7 $ 230.6 $ 72.9 $ — $ 303.5 Depreciation and amortization 78.1 — 78.1 60.3 138.4 EBITDA from continuing operations $ 247.0 $ 61.7 $ 308.7 $ 133.2 $ 441.9 EBITDA as a % of sales 11.1 % 2020年3月31日 Reconciliation of Pro Forma Adjusted Special Adjusted Clariant MB Pro Forma Pro Forma Adjusted Sales $ 711.5 $ — $ 711.5 $ 279.4 $ 990.9 Operating income 52.8 9.7 62.5 23.0 85.5 Interest expense, net (9.4) — (9.4) (12.8) (22.2) Other income, net 1.6 (0.1) 1.5 — 1.5 Income taxes (11.9) (1.0) (12.9) (2.4) (15.3) Net income from continuing operations attributable to Avient shareholders $ 33.1 $ 8.6 $ 41.7 $ 7.8 $ 49.5 Weighted average diluted shares 86.7 Impact to diluted shares from January 2020 equity offering 6.1 Pro forma weighted average diluted shares 92.8 Pro forma adjusted EPS $ 0.53 5 Three Months Ended 2019年12月31日 Year Ended Reconciliation of pro forma sales, operating income, and EBITDA: CAI Clariant MB Pro Forma Pro Forma CAI CAI Clariant MB Pro Forma Pro Forma Sales $ 226.7 $ 263.5 $ 490.2 $ 1,003.8 $ 1,118.6 $ 2,122.4 Operating income $ 27.2 $ 13.2 $ 40.4 $ 147.4 $ 72.9 $ 220.3 EBITDA $ 37.9 $ 28.3 $ 66.2 $ 190.1 $ 133.2 $ 323.3 EBITDA as a % of sales 13.5 % 15.2 % Year Ended 2020年12月31日 Reconciliation of pro forma sales, operating income, and EBITDA: CAI Clariant MB Pro Forma Pro Forma Sales $ 1,502.9 $ 540.4 $ 2,043.3 Operating income $ 180.8 $ 45.0 $ 225.8 EBITDA $ 255.9 $ 75.1 $ 331.0 EBITDA as a % of sales 16.2 % Free cash flow, defined as cash provided by operating activities excluding items associated with acquisitions and divestitures, less capital expenditures, is considered a non-GAAP financial measure.