https://www.avient.com/sites/default/files/2021-08/versaflex-toy-blaster-ammo-case-study-one-pager.pdf
TOY BRAND
S O F T F O A M “ A M M O ”
• Replace foaming polyurethane
• Soft touch without any tacky feeling
• Achieve desired speed and power requirements
• Consistent and low kinetic energy dissipation performance
• High flow ability to improve the production efficiency
• Developed a TPE solution with consistent
quality that met tight durometer specifications
and improved yield
• Passed all weight, compression, and dimension
tests in different testing conditions in order to
prove consistent molding shape and properties
• Met velocity requirements to support brand
claims for power and speed performance
Versaflex™ Thermoplastic Elastomer
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2023-01/Versaflex-Lip gloss tip brush-Application snapshot.pdf
COSMETIC
PACKAGING OEM
L I P G L O S S T I P B R U S H
• Good chemical resistance
• Shore 40A hardness at a 60-degree angle
• Natural/transparent color
• Can be flocked
• Delivered a formulation with good chemical
resistance to oil in long-term environments
• Provided an easy-to-mold TPE and replaced
TPU/TPEE with a better soft touch feel
• Offered good adhesion with an epoxy resin
glue with no impact on the flocking process
Versaflex™ Thermoplastic Elastomers
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2020-12/versalloy-xl-flexible-neck-for-lamp.pdf
H Y D RO P O N I C G ROW I N G
S YS T E M B R A N D
F L E X I B L E N E C K F O R L A M P
• High flow performance capabilities
• Beautiful finish
• Soft touch
• Supported the development process, from
initial design to product launch, to meet the
needs of both the molder and OEM
• Delivered a TPE solution that enabled a
22” flow line with a wall thickness of 0.225”
• Provided technical support and shared
process best practices to minimize
cosmetic defects
Versalloy™ XL Thermoplastic Elastomer
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2020-12/case-study-versaflex-ce-waterproof-speaker-2.pdf
TOP SPEAKER
MANUFACTURER
W A T E R P R O O F S P E A K E R
G A S K E T
• Provide good sealing properties
• Protect from water and dust
• Reduce production time and costs
• Increase design freedom
• Provided a low compression set TPE with
IP67 ingress protection
• Easily prevented ingress of dust and water
• Decreased cycle times and reduced overall
manufacturing costs
• Increased design freedom with overmolding
Versaflex™ CE 3120-40 Thermoplastic
Elastomer
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2020-07/case-study-one-pager-versaflex-vacuum-cleaner-wheel.pdf
COLORABILITY + SLIP RESISTANCE
AVIENT SOLUTION
VAC U U M C L E A N E R
M A N U FAC T U R E R
V A C U U M C L E A N E R W H E E L
• Excellent slip resistance and wet grip
• Easy processing
• Easy coloring
• Offered an easy processing TPE suitable
for coloring with masterbatch to meet
customer preference
• Provided material solution ideal for
meeting critical tire performance needs for
slip resistance and grip during operation
Versaflex™ D3226N
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2020-07/dynaflex-g-cooler-feet-wagon-wheel-tread.pdf
Dynaflex G - Cooler Feet & Wagon Wheel Tread
COOLER
MANUFACTURER
C O O L E R F E E T & W A G O N
W H E E L T R E A D
• Abrasion resistance and excellent tear strength
• UV and heat stability
• Overmoldable to PP or PC
• Provided durable TPE materials at target
durometers to achieve component-specific
performance requirements
• Offered rapid response technical support
for mold trials and guidance on processing
best practices
• Delivered consistent material quality
globally and with short lead times
Dynaflex™ G
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/industries/packaging/cosmetics-packaging/applicators
GLS™ TPEs - Injection Molding Guide
GLS™ TPEs - Overmolding Guide
TPEs for Home Appliances
https://www.avient.com/industries/consumer/consumer-discretionary/home-household/office-supplies
GLS™ TPE Automotive Solutions Improve Vehicle Air Quality with TPEs for Automotive HVAC Flaps
GLS™ TPEs - Overmolding Guide
TPEs for Home Appliances
https://www.avient.com/news/avient-launches-gls-thermoplastic-elastomers-antimicrobial-technology-protects-against-microbial-growth
CLEVELAND – May 10, 2021 – Avient today announced the addition of three proprietary, thermoplastic elastomer (TPE) formulations that contain antimicrobial additives to its GLS™ TPE portfolio.
In response, Avient developed GLS TPEs with antimicrobial additives, available as Versaflex™ and OnFlex™ grades.
GLS TPEs with antimicrobial additives are commercially available in the United States and Asia.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Goldman%2520Sachs%2520Basic%2520Materials%2520Conference%2520-%2520May%25202016.pdf
PolyOne Corporation Page 4
PolyOne Commodity to Specialty Transformation
• Volume driven,
commodity producer
• Heavily tied to
cyclical end markets
• Performance largely
dependent on non-
controlling joint
ventures
2000-2005 2006 - 2009 2010 – 2015 2016 and beyond
• Steve Newlin
appointed, Chairman,
President and CEO
• New leadership team
appointed
• Implementation of four
pillar strategy
• Focus on value based
selling, investment in
commercial resources
and innovation to drive
transformation
• Substantial EPS growth
from $0.13 to all-time
high of $1.96
• Shift to faster growing,
high margin, less
cyclical end markets
• Key acquisitions propel
current and future
growth, as well as
margin expansion
• Specialty mix expands
to 65% of Operating
Income – strongest mix
of earnings in history
• Deliver consistent
double digit annual
EPS growth
• Maintain >35% vitality
index
• Pursue strategic
acquisitions that
expand specialty
offerings and
geographic breadth
• Invest and grow
current and next
generation talent
PolyOne Corporation Page 5
Confirmation of Our Strategy
The World’s Premier Provider of Specialized
Polymer Materials, Services and Solutions
Specialization Globalization
Operational
Excellence
Commercial
Excellence
Associates
PolyOne Corporation Page 6
26 Consecutive Quarters of EPS Growth
PolyOne Corporation Page 7
2015 Revenues: $3.4 Billion
End Markets
2015 Revenues: $3.4 Billion
PolyOne
At A Glance
$0.12
$0.27 $0.21
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Adjusted EPS
United States
66%
Europe
13%
Canada
7%
Asia
7%
Latin America
7%
Appliances
4%
Building &
Construction
12%
Consumer
10%Electrical &
Electronics
5%
Healthcare
11%
Industrial
14%
Packaging
13%
Textiles
2%
Transportation
20%
Wire & Cable
9%
$1.96
Distribution
29%
PP&S
20%
CAI
23%
SEM
15%DSS
13%
PolyOne Corporation Page 8
Old
PolyOne
*Operating Income excludes corporate charges and special items
2%
43%
65%
0%
20%
40%
60%
80%
100%
2005 2010 2015 2020
%
o
f O
pe
ra
tin
g
In
co
m
e*
JV's Performance Products & Solutions Distribution Specialty
80%+
Specialty OI $5M $87M $229M
Mix Shift Highlights Specialty Transformation
Transformation
2020
Platinum
Vision
Platinum
Vision
PolyOne Corporation Page 9
Color and Engineered Materials at the
Heart of Specialty Transformation
OPERATING MARGIN
1.7%
4.6% 5.1%
5.5%
7.2%
8.1%
9.7%
12.2%
14.7%
16.7% 17.0%
20%+
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q'16 2020
Platinum
Vision
COLOR, ADDITIVES
AND INKS
1.1% 1.3%
3.4%
5.1%
9.6%
8.0%
8.6%
9.3%
12.1%
14.7%
16.6%
20%+
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q'16 2020
Platinum
Vision
SPECIALTY
ENGINEERED MATERIALS
PolyOne Corporation Page 10
2006 1Q 2016 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income %
Specialty:
Color, Additives & Inks 1.7% 17.0% 20%+
Specialty Engineered Materials 1.1% 16.6% 20%+
Designed Structures & Solutions N/A 2.5% (TTM) 8 – 10%
Performance Products &
Solutions 5.5% 11.9% 12 – 14%
Distribution 2.6% 6.5% 6.5 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 61% 80%+
3) ROIC* 5.0% 12.0% 15%
4) Adjusted EPS Growth N/A 22% Double Digit
Expansion
Proof of Performance & 2020 Goals
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
PolyOne Corporation Page 11
Therma-Tech™ & Sheet
GEON™ Vinyl
Polymer ColorantsTherma-Tech™
TPE’s & Film
TPE + OnForce™
Gravi-Tech™
Page 11
Film
Target End Markets… Healthcare
PolyOne Corporation Page 12
TPE + OnForce
(SEM)
OnForce
(SEM)
Glasforms
(SEM)
TPE Vibration Dampening
(SEM/GLS)
TPE & Film
(SEM + DSS)
Glasforms
(SEM)
Polymer Colorants
(CAI)
Thermatech
(SEM)
Thermoplastic Elastomers
(SEM)
TPE + OnForce
(SEM)
OnForce
(SEM)
Thermoplastic Elastomers
(SEM)
Glasforms
(SEM)
Polymer Colorants
(CAI)
Sheet
(DSS)
Source: Outdoor Industry Association
Target End Markets… Outdoor High Performance
PolyOne Corporation Page 13
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
PolyOne Corporation Page 14
Target End Markets… Packaging
PreservaPak™
OnColor™
Smart Batch™
VersaFlex™
TPE Cap Liner
ColorMatrix™
Amosorb™
Oxygen Scavenger
ColorMatrix™
Ultimate™ UV
Light Barrier
OnCap™
Laser Marking
Additives
PolyOne Corporation Page 15
Innovation Drives Earnings Growth
*Specialty Platform revenue from products introduced in last five years
$20
$53
2006 2015
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
34%
2006 2015
CAI & SEM
Gross Margin
12%
43%
2006 2015
Target ≥ 35%
Innovation Pipeline Potential
PolyOne Corporation Page 16
2,883
2,414
2006 2015
Volume
(lbs in millions)
-16%
$103
$192
2006 2015
Commercial, R&D
and Marketing
Spending ($M)
+86%
$303
$721
2006 2015
Adjusted
Gross Profit ($M)
+138%
Ours is Not a Cost Cutting Story
PolyOne Corporation Page 17
Design and Service as a Differentiator
Right Material &
Color
Desired
Product Design
Appropriate
Manufacturing Process
Delivering Concept to
Commercialization
Connecting
the Dots with
iQ Design Labs and
InVisiO Color Design
PolyOne Corporation Page 18
Customer First Through World-Class Service
Strengthening relationships through:
Providing LSS services to small/medium sized customers
Providing training in Customer Centric Selling Skills with customers
World’s Best Business
Process Excellence
Program in 2012*
World’s Best Start-up
program for Lean Six Sigma
Deployment in 2009*
81%
93%
2006 2015
16.2%
9.7%
2006 2015
On-Time Delivery
Working Capital % of Sales
52% of associates trained in LSS
Five consecutive years – CFO Magazine Best Working
Capital Management in the chemical industry
Commitment to Operational Excellence
PolyOne Corporation Page 19
60%
100%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 1Q 2016
Pension Funding**
As of March 31, 2016
Debt Maturities & Pension Funding
Net Debt / Adjusted EBITDA*= 2.5x
** includes US-qualified pension plans only*TTM 3/31/2016
$550
$600
$200
$300
$400
$500
$600
$700
$800
2022 2023
Debt Maturities
As of March 31, 2016
($ millions)
Coupon Rate: 3.750% 5.250%
PolyOne Corporation Page 20
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
$0.32
$0.40
$0.48
$0.10
$0.20
$0.30
$0.40
$0.50
2011 2012 2013 2014 2015 2016
Annual Dividend
Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material
solutions
Repurchased
1.5 million shares in
Q1 2016
Repurchased 17.3
million shares since
early 2013
10.0 million shares are
available for
repurchase under the
current authorization
$0.24
PolyOne Corporation Page 21
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?