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The ability to successfully integrate acquired companies into our operations, retain the management teams of acquired companies, retain relationships with customers of acquired companies, and achieve the expected results of such acquisitions, including whether such businesses will be accretive to our earnings; • 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 effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks; • Changes in polymer consumption growth rates and laws and regulations regarding the disposal of plastic in jurisdictions 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; • Information systems failures and cyber attacks; 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. Patterson Chairman, President and CEO INTRODUCTION B O B P A T T E R S O N PolyOne Corporation 7 PolyOne Corporation 8 H I S T O R I C P A S T S U S T A I N A B I L I T Y A T P O L Y O N E PolyOne Corporation 9 P E O P L E P R O D U C T S P L A N E T S A F E T Y F I R S T PolyOne Corporation 10 1.3 1.1 1.1 0.85 0.65 0.57 0.54 0.97 0.84 0.74 0.74 0.69 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Injuries per 100 Workers Spartech Acquisition T H E P O L Y O N E A C A D E M Y PolyOne Corporation 11 Leadership Program Participants 2012 2013 2015 86 2016 125 169 216 Campus Hires 2008 2011 25 S U S T A I N A B L Y I M P A C T I N G D I V E R S E E N D M A R K E T S PolyOne Corporation 12 With emphasis on: • Light-weighting • Reducing packaging materials • Improving recyclability • Reducing spread of infection • Facilitating alternative energy solutions Building & 9% Electrical & P R O D U C T S A N D P O R T F O L I O O P T I M I Z A T I O N PolyOne Corporation 13 R E I N V E S T G R O WD I V E S T ( D S S ) OUR PLANET PolyOne Corporation 14 Energy Saving Projects 26 REDUCTION REDUCTION Waste Reduction Projects 2,557 LSS Projects Executed 202 PolyOne LSS Blackbelts 2011 2017 202 2008 147 67 2,557 2008 2017 S U S T A I N A B I L I T Y A T P O L Y O N E PolyOne Corporation 15 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 16 $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 17 65% 2005 2014 $5M $242M + 25% + 33% Specialty OI % of Operating Income C O M M O D I T Y P R U N I N G H E L D O R G A N I C S A L E S F L A T PolyOne Corporation 18 2010 2011 2012 2013 2014 Acquisitions Organic Revenue I N V E S T M E N T I N COMMERCIAL RESOURCES D R I V I N G R E S U L T S PolyOne Corporation 19 Largest organic revenue growth since recession $2.9 $2.9 $3.2 2015 2016 2017 Revenue in billions of $ Total + 10% Organic + 7% S U S T A I N A B L E P A T H T O D O U B L E - D I G I T E P S G R O W T H PolyOne Corporation 20 Double digit annual EPS growth Expand specialty portfolio with strategic acquisitions Innovate and develop new technologies and services Repurchase 600K-1M shares annually Increase commercial resources 6-8% annually Double acquired company margins Enhance efficiencies through Lean Six Sigma and commercial excellence 5.0% 2006 2017 Platinum Vision Updated Expectations R A I S I N G T H E B A R R O I C D R I V E S S H A R E H O L D E R R E T U R N PolyOne Corporation 21 COMMERCIAL EXCELLENCE PolyOne Corporation 22 M I C H A E L G A R R A T T PolyOne Corporation 23 PolyOne Corporation 24 35% more sales calls 25% more marketing campaigns 1,000 new customers, expanding customer base by 5% $1.0B increase in new opportunities 8% reduction of average territory size, enabling greater customer focus 20% more prospecting calls PolyOne Corporation 25 P O L Y O N E +34% $3.0 billion $4.0 billion A L I G N I N G W I T H T R E N D S F O R G R O W T H T R A N S P O R T A T I O N P A C K A G I N G H E A L T H C A R E C O N S U M E R PolyOne Corporation 26 Facilitate alternative energy solutions Light- weighting Reduce packaging materials Improve recyclability Reduce spread of infection PolyOne Corporation 27 Customization 55% M&A Innovation Pipeline Adjacent Opportunity for Growth Through New Innovation comes from PolyOne Corporation 28 Adjacent Opportunity for Growth Through New New development adjacent to our existing New development beyond our current Development within our current markets and Create new markets, target new customer Service existing markets and Adjacent Opportunity for Growth Through New PolyOne Corporation 29 markets and Create new markets, target new customer Service existing markets and Gordon/Polystrand – Composites GLS – Thermoplastic Elastomers ColorMatrix – Liquid Color & Additives New development adjacent to our existing New development beyond our current Development within our current Adjacent Opportunity for Growth Through New PolyOne Corporation 30 markets and Create new markets, target new customer Service existing markets and Non-Halogen Flame Retardant Polymers Barrier Technologies Fiber Colorants Advanced Composites Thermoplastic Elastomers New development adjacent to our existing New development beyond our current Development within our current I N N O V A T I O N P I P E L I N E PolyOne Corporation 31 PrototypeFrame Opportunity Scale-up & Test Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 6 2 1 15 4 10 11 4 7 Breakthrough Platform Derivative Number of Projects 26 16 20 15 2 79 Color Technologies – – $335 $670 $410 19 $1,415 Barrier Additives – – $160 $255 – 8 $415 Flame Retardant Polymers – – $200 $50 – 14 $250 Thermoplastic Elastomers – – $410 $80 $30 17 $520 Advanced Composites – – $100 $40 – 8 $140 Specialty Vinyl Formulations – – $25 $75 – 13 $100 Total Addressable Market ($ millions) – – $1,230 $1,170 $440 $2,840 38% $20 $52 Research & Development Spend ($ millions) Vitality Index % of sales from products launched last 5 years I N N O V A T I O N D R I V E S E A R N I N G S G R O W T H PolyOne Corporation 32 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 33 Material & Color Expertise Manufacturing Expertise 3 14 Industrial designers $0 $7M $4M $40M Opportunity funnel New business revenue 3 D P R I N T I N G B R I N G I N G N E W I D E A S T O L I F E PolyOne Corporation 34 Enables validation of fit and function Shortens design cycle and time to market Avoids tooling rework Drives innovation Delivers substantial customer value LSS CUSTOMER FIRST PolyOne Corporation 35 Customer Projects Enables sales growth by building more intimate customer relationships, giving us insight to customers’ needs, with a service that is not easily replicated 2 85 Lead Specialists T H E E V O L V I N G C U S T O M E R R E L A T I O N S H I P PolyOne Corporation 36 Expanded Path Traditional Path Strategic Accounts/ Field Sales Business Development Customer Service Web and Social Media Inside Sales PolyOne Corporation 37 Investments in digital and dedicated inside sales to improve customer experience 80% increase in leads (from 6,000 to 11,000) driven by website, phone, and online chat EXPANDED PATH A D D I N G C U S T O M E R T O U C H P O I N T S 4 21 Inside sellers $11M $88M Inside sales/digital revenue 4 focused end-markets aligned with global megatrends 5 strategic innovation platforms 30% increase in IQ Design projects 35% increase in revenue from inside sales/digital ≥35% vitality index PolyOne Corporation 38 I N N O V A T I N G W I T H P O L Y O N E PolyOne Corporation 39 SEGMENT REVIEWS POLYONE DISTRIBUTION PolyOne Corporation 40 S C O T T H O R N 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 41 23% 22% Electrical & Building & $20 $63 $73 2.9% 5.9% 1.0% 3.0% 5.0% 7.0% 15 25 35 45 55 65 75 Operating Income & Margin2017 Revenue | $1.2 Billion http://www.avient.com/Pages/VariationRoot.aspx http://www.avient.com/Pages/VariationRoot.aspx S E R V I C E I S O U R B U S I N E S S PolyOne Corporation 42 Uniquely positioned to help our customers grow their brand and value-added solutions 1.2B $ Annual Sales 250 Global Employees 24 Strategic Presence 132 Sales Reps Warehouse Locations 6 Service Centers Dedicated Commercial Team S E R V I C E I S O U R B U S I N E S S S A F E L Y A N D R E S P O N S I B L Y PolyOne Corporation 43 95% on-time delivery Customer/Product Combinations 14,000 Transactions/Month In-Person Customer Visits 6,500 27,000 $ PolyOne Corporation 44 37% more sales calls $65M in new revenue from inside sales $400M increase in new opportunities 24% increase in close rate 51% increase in prospecting calls 119 13211 1315 23 Sales R&D / Technical Marketing + 53% + 11% PolyOne Corporation 45 Providing differentiated services that meet the needs of the changing customer landscape G R O W T H T H R O U G H I N S I D E S A L E S $65 PolyOne Distribution Inside Sales $ in millions PolyOne Corporation 46 G R O W T H T H R O U G H M U L T I P L E S A L E S C H A N N E L S Technical Field Sales Key Accounts / Industry Sales Inside Sales Serving a broad spectrum of customers Leveraging digital systems to drive awareness and enhance the customer experience PolyOne Corporation 47 P O D S A L E S +27% $1.2 billion $1.6 billion >10% annual increase in revenue from inside sales and digital with expanded customer touch points 8% annual expansion of sales funnel with best-in-class service and technical expertise 6-8% compound annual operating income growth 6-7% operating margins PolyOne Corporation 48 SPECIALTY ENGINEERED MATERIALS PolyOne Corporation 49 M I C H A E L G A R R A T T 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 50 Engineered Formulations Advanced Thermoplastic Elastomers 19% Electrical & 13% 8% 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 51 $21 $57 $76 0.1% 5.1% 9.3% 12.1% Europe 28% 48% 22% C A P I T A L I Z I N G O N T H E G L O B A L M A R K E T PolyOne Corporation 52 Demand for engineered materials is accelerating Expanding thermoplastic elastomer portfolio to meet the demands of local consumption Grow and develop low smoke, non-halogen technologies to meet increasing European standards Adding capacity in strategic markets India Germany China North America Establishing a commercial hub in Southeast Asia PolyOne Corporation 53 PolyOne Corporation 54 13% more sales calls 36% increase in customization projects $270M increase in new opportunities 12% reduction in average territory size, enabling greater customer focus 50% improvement in speed of formulation turnaround Increased commercial headcount 133 17335 39 120 147 + 30% + 11% PolyOne Corporation 55 S E M S A L E S +43% $610 million $880 million PolyOne Corporation 56 Leading Sporting Goods Manufacturer Provided Lean Six Sigma training and led an onsite Black Belt project to improve product development cycle times Reduced innovation project cycle times by over 10% and prototyping by 40% 80% increased resulting in $500k savings I N N O V A T I O N S P O T L I G H T : C O M P O S I T E S PolyOne Corporation 57 C O M P O S I T E S R E F R E S H E R PolyOne Corporation 58 Polymer Composite Strength Design Flexibility Continuous Fiber Thermoset Short Glass Fiber Thermoplastics Continuous Fiber Long Glass Fiber Thermoplastics S T R A T E G I C I N V E S T M E N T H I S T O R Y PolyOne Corporation 59 Acquired Polystrand Installed LFT production Avon Lake Long Fiber Thermoplastic (LFT) Technology Installed LFT Barbastro, Spain Acquired Glasforms Acquired Gordon Thermoplastic Long Fiber Reinforced Thermoplastics Continuous Fiber Thermosets 2010 2012 2015 2016 20162009 20122011 2014 C O M P O S I T E S I N T R A N S P O R T A T I O N PolyOne Corporation 60 W A T E R C R A F TR A I L H E A V Y T R U C K Bulkheads and Transoms Ceilings and Hatches Doors and Cabinetry Flooring Door Panels Side Walls Flooring & Side Panels Aerodynamic Fairings Seat and Bunk Reinforcements 44 At Acquisition Now Commercial Resources 0% At Acquisition Goal Operating Margins Test Market Innovation Projects PolyOne Corporation 61 A D V A N C E D C O M P O S I T E S Long-term investments align with key global megatrends Light-Weighting Design Flexibility Sustainability >10% annual increase in customization projects 10% annual expansion of sales funnel, enhancing portfolio in 4 focus end markets 20% increase in global capacity 12-15% compound annual operating income growth 14-16% operating margins PolyOne Corporation 62 PERFORMANCE PRODUCTS & SOLUTIONS PolyOne Corporation 63 D O N W I S E M A N 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 64 Specialty Vinyl Solutions Healthcare Formulations Smart Device Materials Flame Retardant Polymers Building & Electrical & 1% Asia 77% Mexico 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% 10 PolyOne Corporation 65 $886 $668 $773 $721Sales PolyOne Corporation 66 PolyOne Corporation 67 25% more sales calls 113% increase in innovation pipeline $240M increase in new opportunities 36% increase in prospecting calls 300 basis point improvement in operating margin 57 66 18 37 53 + 16% + 43% + 6% PolyOne Corporation 68 P P & S S A L E S +40% $610 million $850 million PolyOne Corporation 69 Leading Wire & Cable Manufacturer Provided Lean Six Sigma training and led on-site Kaizen process improvements Reduced over 400 labor hours through reorganized work area and floor space Increased manufacturing throughput value $1.4M PolyOne Corporation 70 IQ Design is collaborating with a leading medical device manufacturer to replace metal and provide chemical resistance to solve cracking issues related to intense cleaning requirements H E A L T H C A R E I N N O V A T I O N S I N N O V A T I O N S P O T L I G H T : F L A M E R E T A R D A N T P O L Y M E R S PolyOne Corporation 71 F L A M E R E T A R D A N T D R I V E R S PolyOne Corporation 72 Shift toward less toxic solutions Increased consumer awareness Focus on environmentally friendly solutions New regulatory standards F L A M E R E T A R D A N T P E R F O R M A N C E S P E C T R U M PolyOne Corporation 73 Flame Retardant Flame Retardant Flame Retardant Non-Halogen No Dripping Low Smoke Low Toxicity & Corrosiveness H A L O G E N N O N - H A L O G E N L S F O H ( L o w S m o k e a n d F u m e , N o n - H a l o g e n ) Non-Halogen R E G U L A T O R Y C H A N G E S P R O V I D E O P P O R T U N I T Y L E D S O L U T I O N S PolyOne Corporation 74 Solutions for rigid molded & extruded applications Superior outdoor weather performance Excellent light dispersion qualities Formulated to meet stringent flame-rating regulations Custom design support to meet demand 8% more sales calls annually 10% annual expansion of sales funnel, including breakthroughs in healthcare technologies 8-10% compound annual operating income growth 12-14% operating margins PolyOne Corporation 75 COLOR ADDITIVES & INKS PolyOne Corporation 76 M A R K C R I S T C O L O R , A D D I T I V E S & I N K S PolyOne Corporation 77 Solid Colorants Performance Additives Screen Printing Inks Liquid Colorants 27% 14% Textiles Building & 8% 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 $104 $139 0.9% 5.5% 12.2% 15.5% 16.0% 18.0% 110 120 130 140 150 PolyOne Corporation 78 Europe 32% 46% 1% Mexico Brazil C A P I T A L I Z I N G O N T H E G L O B A L M A R K E T PolyOne Corporation 79 Emerging markets driving strong demand for color and additives Rapid adoption of food and beverage packaging additives Fiber colorants growth focused on expanding Asia-Pacific market Increase commercial investments focused on China, India and Mexico Expand capacity in China and leverage investments in India Recent acquisitions increasing global reach PolyOne Corporation 80 PolyOne Corporation 81 35% more sales calls 30% increase in customized color formulations 106% increase in innovation pipeline $170M increase in new opportunities 20% increase in prospecting calls 9 days or less in design turnaround time: best-in-class Increased commercial investment 301 382 38 43 209 275 + 27% + 13% + 32% PolyOne Corporation 82 C A I S A L E S +32% $540 million $710 million PolyOne Corporation 83 Developed inventory management framework to reduce working capital by Printing Equipment and Supply Manufacturer Provided Lean Six Sigma training and conducted process mapping exercises to identify key improvement opportunities Optimize manufacturing: 45% improvement in assembly process, 25% cycle time A D D I T I V E & C O L O R A N T T E C H N O L O G I E S PolyOne Corporation 84 B A R R I E R T E C H N O L O G I E S Active oxygen scavenging additive in the bottle wall Evolving technology for active oxygen scavenging additive in the bottle cap Amosorb™ HyGuard™ UV and visible light blocking additive to prevent degradation of product Lactra™ SX Market leader in oxygen, light and UV barrier solutions for the PET bottle market PolyOne Corporation 85 S T R A T E G I C A D D R E S S A B L E M A R K E T > $ 2 0 0 M F I B E R C O L O R A N T S Eliminate waste water associated with conventional dyeing Help meet sustainability targets for brand owners Enable “uncolored fiber” producers to bypass dyehouse Strategic addressable market >$300M PolyOne Corporation 86 S T R A T E G I C I N V E S T M E N T H I S T O R Y PolyOne Corporation 87 Thermoplastic 2011 2015 2018 Acquired ColorMatrix Acquired Magenta Acquired IQAP $10 $45 Revenue from Fiber Color Invested in development of liquid fiber colorant technology Expanded solid colorant offerings 38 43 At Acquisition Now Commercial Resources Innovation Projects PolyOne Corporation 88 I N V E S T I N G F O R T H E F U T U R E Nearly 900 projects identified Gaining sustainable momentum & building trust with consumers Sales Funnel $125M “We are unleashing the power of human potential, all to advance the game. Dye fabric without water, spin plastic bottles into thread, maximizing performance while minimizing impact.”
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PET Bottle for Hair Care Philips Avent Milk Bottle Seal (English) Philips Avent Milk Bottle Seal (Spanish)
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CycleWorks™ Innovation Center For Plastic Recycling
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Colorant and functional additive solutions formulated with bio-based polymers to reduce the carbon footprint of medical plastics. Heavy or high-production volume plastic parts Various applications to include prints on the plastics e.g., expiry dates, bar codes, QR codes, graduations
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ElectriPlast Corp. is a leading technology innovator in conductive plastics with a broad intellectual property portfolio and deep application development expertise. Its core material, ElectriPlast®, is an electrically conductive resin-based material whose properties allow it to be molded into infinite shapes and sizes associated with plastics and rubbers, while reducing component weight by 40 to 60%. Integral is a leader in conductive hybrid plastics, having over 50 issued patents for conductive plastic.
https://www.avient.com/resource-center?document_type=59&document_subtype=0&industry=0&product_family=0&product_name=0&op=FILTER RESULTS&form_id=resource_filter_form&page=12
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https://www.avient.com/products/polymer-additives/processing-enhancement-additives/cesa-clean-additives
Plastics processing periodically requires the complete removal of thermooxidized deposits from extruders and injection molding machines. The effectiveness of Cesa Clean comes from the mechanical scrubbing action during purging between the material, plasticizing screw, and barrel. Improve the flow characteristics of plastics during process and enhance both appearance and function
https://www.avient.com/knowledge-base/article/optimizing-automotive-structural-component-designs-advanced-modeling?rtype[]=1164
Reinforced polymer materials are increasingly being used for structural applications because they allow manufacturers to replace traditional metal components with lighter-weight plastics. However, transitioning from metal to plastic requires thorough technical analysis and preparation. By factoring in static and dynamic data, the CAE simulations can identify where an injection molded plastic part may crack or break when exposed to real-world conditions such as physical loading force, sudden impact (crash simulation), or environmental factors like temperature and humidity.
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Among all the different types of plastics on the market today, why would anyone choose polyaryletherketones (PAEK), polysulfones (PSU), liquid crystal polymers (LCP), polyetherimides (PEI) and polyphenylene sulfides (PPS) for their application? While commodity plastics and engineering plastics can typically maintain their performance in environments up to 100°C and up to 120°C, respectively, a high-performance thermoplastic can withstand continuous use temperatures of 230°C.
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Reinforced polymer materials are increasingly being used for structural applications because they allow manufacturers to replace traditional metal components with lighter-weight plastics. However, transitioning from metal to plastic requires thorough technical analysis and preparation. By factoring in static and dynamic data, the CAE simulations can identify where an injection molded plastic part may crack or break when exposed to real-world conditions such as physical loading force, sudden impact (crash simulation), or environmental factors like temperature and humidity.