https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520Jefferies%2520Conf%2520w%2520Non%2520GAAP%252008%252012%25202014.pdf
Platform operating income mix percentage 2005Y* 2008Y* 2010Y* 2013Y 2014 Q2
Global Color, Additives and Inks $ 4.3 $ 28.1 $ 37.7 $ 104.0 $ 68.1
Global Specialty Engineered Materials 0.4 17.6 49.7 57.2 37.2
Designed Structures and Solutions - - - 33.4 24.1
Specialty Platform $ 4.7 $ 45.7 $ 87.4 $ 194.6 $ 129.4
Performance Products and Solutions 75.7 31.3 54.0 56.0 33.6
Distribution 19.5 28.1 42.0 63.3 34.5
Joint ventures 91.9 28.6 18.9 - -
Corporate and eliminations (51.5) (425.1) (27.7) (82.4) (91.7)
Operating income (loss) GAAP $ 140.3 $ (291.4) $ 174.6 $ 231.5 $ 105.8
Less: Corporate operating expense 51.5 425.1 27.7 82.4 91.7
Operating income excluding Corporate $ 191.8 $ 133.7 $ 202.3 $ 313.9 $ 197.5
Specialty platform operating mix percentage 2% 34% 43% 62% 66%
* Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520Credit%2520Suisse%2520w%2520non%2520GAAP%25206%252025%25202014.pdf
Platform operating income mix percentage 2005Y* 2008Y* 2010Y* 2013Y 2014 Q1
Global Specialty Engineered Materials $ 0.4 $ 17.6 $ 49.7 $ 57.2 $ 18.3
Global Color, Additives and Inks 4.3 28.1 37.7 104.0 30.4
Designed Structures and Solutions - - - 33.4 11.2
Specialty Platform $ 4.7 $ 45.7 $ 87.4 $ 194.6 $ 59.9
Performance Products and Solutions 75.7 31.3 54.0 56.0 16.0
Distribution 19.5 28.1 42.0 63.3 17.2
SunBelt Joint venture 91.9 28.6 18.9 - -
Corporate (51.5) (425.1) (27.7) (82.4) (36.7)
Operating income (loss) GAAP $ 140.3 $ (291.4) $ 174.6 $ 231.5 $ 56.4
Less: Corporate operating expense 51.5 425.1 27.7 82.4 36.7
Operating income excluding Corporate $ 191.8 $ 133.7 $ 202.3 $ 313.9 $ 93.1
Specialty platform operating mix percentage 2% 34% 43% 62% 64%
* Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520GS%2520w%2520non%2520GAAP%25205_21_14.pdf
Platform operating income mix percentage 2005Y* 2008Y* 2010Y* 2013Y 2014 Q1
Global Specialty Engineered Materials $ 0.4 $ 17.6 $ 49.7 $ 57.2 $ 18.3
Global Color, Additives and Inks 4.3 28.1 37.7 104.0 30.4
Designed Structures and Solutions - - - 33.4 11.2
Specialty Platform $ 4.7 $ 45.7 $ 87.4 $ 194.6 $ 59.9
Performance Products and Solutions 75.7 31.3 54.0 56.0 16.0
Distribution 19.5 28.1 42.0 63.3 17.2
SunBelt Joint venture 91.9 28.6 18.9 - -
Corporate (51.5) (425.1) (27.7) (82.4) (36.7)
Operating income (loss) GAAP $ 140.3 $ (291.4) $ 174.6 $ 231.5 $ 56.4
Less: Corporate operating expense 51.5 425.1 27.7 82.4 36.7
Operating income excluding Corporate $ 191.8 $ 133.7 $ 202.3 $ 313.9 $ 93.1
Specialty platform operating mix percentage 2% 34% 43% 62% 64%
* Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Seaport%2520Global%2520Transports%2520%2526%2520Industrials%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%
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?
https://www.avient.com/sites/default/files/2024-11/Avient Wire _ Cable Industry Bulletin.pdf
DATA CABLES
SOLUTIONS AVIENT TECHNOLOGIES
Non-Halogenated FR Additives Cesa™ Flame Retardant Additives
Colorants & Additives
Smartbatch™ Combination Colorants & Additives
OnColor™ Colorants for Wire & Cable
High-Temperature Colorants &
Pre-Colored Solutions
Colorant Chromatics™ ECTFE/ETFE Colorants
Colorant Chromatics™ FEP Colorants
Colorant Chromatics™ PEEK and PEI-Siloxane (SILTEM™ resin)
Colorants & Pre-colored Solutions
Colorant Chromatics™ PFA/MFA Colorants
Colorant Chromatics™ PVDF Colorants
Colorant Chromatics™ Reinforced Formulations
High-Temperature Marking Inks Colorant Chromatics™ Marking Inks
Conductive High-Temperature Formulations Colorant Chromatics™ Conductive Formulations
https://www.avient.com/products/engineered-polymer-formulations/sustainable-formulations/eccoh-low-smoke-and-fume-non-halogen-formulations
https://www.avient.com/products/engineered-polymer-formulations/flame-retardant-formulations/maxxam-fr-flame-retardant-polyolefin-formulations
https://www.avient.com/products/engineered-polymer-formulations/flame-retardant-formulations/maxxam-sy-foamable-flame-retardant-formulations
https://www.avient.com/products/polymer-additives/uv-and-light-blocking-additives
https://www.avient.com/products/engineered-polymer-formulations/sustainable-formulations/eccoh-low-smoke-and-fume-non-halogen-formulations
https://www.avient.com/products/polymer-additives/foaming-agents/excelite-chemical-foaming-additives
https://www.avient.com/products/polymer-additives/foaming-agents/hydrocerol-chemical-foaming-agents
https://www.avient.com/products/polymer-additives/processing-enhancement-additives/cesa-ctr-additives
https://www.avient.com/products/polymer-additives/colorants-and-additives-wire-cable/cesa-laser-additives
https://www.avient.com/products/polymer-additives/laser-marking-additives/colorant-chromatics-uv-laser-marking-technology
https://www.avient.com/products/fiber-line-engineered-fiber-solutions/fiber-line-engineered-fiber-products/ripcords-fiber-optic-cable
https://www.avient.com/products/fiber-line-engineered-fiber-solutions/fiber-line-engineered-fiber-products/water-blocking-absorbing-yarn
https://www.avient.com/products/polymer-additives/colorants-and-additives-wire-cable/cesa-flame-retardant-additives
https://www.avient.com/products/polymer-colorants/solid-color-masterbatches/oncolor-ul-94-colorants
https://www.avient.com/products/polymer-additives/anti-counterfeiting/cesa-percept-authentication-technologies
https://www.avient.com/products/fiber-line-engineered-fiber-solutions/fiber-line-engineered-fiber-products
https://www.avient.com/products/fiber-line-engineered-fiber-solutions/fiber-line-engineered-fiber-products/strength-members
https://www.avient.com/products/polymer-additives/repellant-antimicrobial-additives/cesa-withstand-antimicrobial-additives
https://www.avient.com/products/polymer-colorants/solid-color-masterbatches/oncolor-wire-cable
https://www.avient.com/products/polymer-additives/electrical-performance-additives/cesa-conductive-additives
https://www.avient.com/products/polymer-additives/processing-enhancement-additives/cesa-stat-antistatic-additives
https://www.avient.com/products/engineered-polymer-formulations/sustainable-formulations/eccoh-low-smoke-and-fume-non-halogen-formulations
https://www.avient.com/products/polymer-additives/colorants-and-additives-wire-cable/cesa-flame-retardant-additives
https://www.avient.com/products/polymer-colorants/color-additive-combination-masterbatches/smartbatch-combination-colorants-additives
https://www.avient.com/products/polymer-colorants/solid-color-masterbatches/oncolor-wire-cable
https://www.avient.com/products/polymer-colorants/fluoropolymer-color-concentrates/colorant-chromatics-ectfe/etfe-colorants
https://www.avient.com/products/polymer-colorants/fluoropolymer-color-concentrates/colorant-chromatics-fep-colorants
https://www.avient.com/products/polymer-additives/colorants-and-additives-wire-cable/colorant-chromatics-peek-and-pei-siloxane-colorants-pre-colored-solutions
https://www.avient.com/products/polymer-colorants/fluoropolymer-color-concentrates/colorant-chromatics-pfa/mfa-colorants
https://www.avient.com/products/polymer-colorants/fluoropolymer-color-concentrates/colorant-chromatics-pvdf-colorants
https://www.avient.com/products/engineered-polymer-formulations/high-temperature-polymer-formulations/colorant-chromatics-reinforced-formulations-0
https://www.avient.com/products/printing-and-marking-inks/colorant-chromatics-marking-inks
https://www.avient.com/products/engineered-polymer-formulations/conductive-signal-radiation-shielding-formulations/colorant-chromatics-conductive-formulations-0
https://www.avient.com/sites/default/files/2022-03/Avient 2021 Annual Report.pdf
Avient
does not produce commodity base resins.
The distribution of polymer resin is also highly competitive.
Growth in the
polymer distribution market is highly correlated with growth in the base polymer resins market.
https://www.avient.com/sites/default/files/2021-11/avnt-november-investor-meetings.pdf
Post-consumer recycled content as percentage of total plastic packaging volume, by weight
E NA B L I N G T H E U S E O F R E C YC L E D C O N T EN T
T O P 5 G A P S T H A T W E A R E A D D R E S S I N G
2) DECONTAMINATION1) COLOR MANAGEMENT 3) MAINTAINING MECHANICAL
PROPERTIES
4) MONO-MATERIAL
CONSTRUCTION
5) CONSISTENT RECYCLED
MATERIAL QUALITY
15
G U I D I N G B R A N D S T O W H A T I S P O S S I B L E
C A S E S T U DY W I T H B R A N D OW N E R
Recycled ResinVirgin Resin
16
S U S TA I NA B I L I T Y F O R A B ET T E R TO M O R ROW
17
• Revenue from sustainable solutions expected
to grow 18% in 2021 as our innovation efforts
and collaboration with customers continues to
accelerate
• Investments centered around innovation and
global sustainability megatrends
o Enabling a circular economy –
Technologies that allow for increased use of
post-consumer recycled (PCR) material and
improve recyclability of plastics
o Light-weighting – Composites and CAI
applications to reduce weight and material
requirements, which minimize energy and
carbon emissions
o Eco-Conscious – Health and human safety
applications as well as Avient’s alternative
materials to replace lead, PVC, halogens,
BPA and other less eco-friendly options
17
*Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”)
**2020 is Pro Forma to include full year of the Clariant Color business
2016 2017 2018 2019 2020PF** 2021E
$405M
$455M
$340M
$550M
$790M
Revenue From Sustainable Solutions* 2016-2021
$930M
17
Q3 2020 $925 $74
Sustainable Solutions 35 19% 14
Healthcare 51 44% 10
Composites 13 39% 6
Growth in Asia / LATAM 14 11% 3
Other 177 39% 16
Sub-total $1,215 31% $123
Supply Chain Disruption Costs (19)
COVID Response Applications (5) (3)
FX Impact 10 2
Synergies 12
Incentives, Travel, Other Employee Costs (16)
Q3 2021 $1,220 32% $99
Q3 2021 SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
18
Sales Growth Rate
Adjusted
Operating
Income$ millions
19
Q3 2020 Q3 2021
(1) Financial information is presented on a constant currency basis
(1)
(44% of total revenue)
(56% of total revenue)
Q3 END MARKET SALES PERFORMANCE
+20%
+31%
+40%
+24%
+46%
+40%
+14%
+33%
Energy Telecom Building &
Construction
Transportation Industrial Healthcare Packaging Consumer
Q3 YEAR-OVER-YEAR EBITDA BRIDGE
20
• Demand driven by growth
in sustainable solutions,
healthcare and consumer
applications
• Price increases more than
offsets raw material and
supply chain impacts
• Synergy capture on pace
to achieve $50M in annual
savings in 2021
Q3 2020 $ 111
Demand 29
Adjusted
EBITDA$ millions
CAI:
Price / Mix 51
Inflation (37)
SEM:
Price / Mix 25
Inflation (22)
Distribution:
Price / Mix 108
Inflation (103)
Net Price Benefit 22
Supply Chain Disruption Costs (19)
COVID Response Applications (3)
Synergies 12
Incentives, FX, Other (16)
Q3 2021 $ 136
21
• Price increases have more than
covered raw material and freight
inflation impacts of $300M year-
to-date compared to 2020
• Demand impact driven by
Q3 seasonality for the business
Q2 TO Q3 SEQUENTIAL EBITDA BRIDGE
Q2 2021 $ 159
CAI:
Price / Mix 17
Inflation (8)
SEM:
Price / Mix 6
Inflation (5)
Distribution:
Price / Mix 35
Inflation (35)
Net Price Benefit 10
Supply Chain Disruption Costs (4)
Demand / Seasonality (35)
Other 6
Q3 2021 $ 136
Adjusted
EBITDA$ millions
F U L L Y E A R 2 0 2 1
O U T L O O K
$308
$430
2020PF 2021E
$1.93
$3.00
2020PF 2021E
FULL YEAR GROWTH PROJECTIONS
( T O TA L C O M PA N Y )
23
Sales Adjusted Operating Income
$3,783
$4,750
2020PF 2021E
+ 26%
Adjusted EPS
+ 40% + 55%
(in millions) (in millions)
(1) Financial information is pro forma to include a full year of Clariant Color acquisition
(1)(1)(1)
$1.74
$1.93
$3.00
2019PF 2020PF 2021E
$442
$457
$580
2019PF 2020PF 2021E
FULL YEAR 2019 – 2021 GROWTH
( T O TA L C O M PA N Y )
24
Sales Adjusted EBITDA
$3,981
$3,783
$4,750
2019PF 2020PF 2021E
+ 19%
Adjusted EPS
(1) Financial information is pro forma to include a full year of Clariant Color acquisition
(1) (1)
(in millions) (in millions)
(1)(1)
+ 31% + 72%
(1) (1)
0.1 0.1
0.2
0.5
0.6
0.7
0.8
0.9
0.9
1.0 1.0
11 12 13 14 15 16 17 18 19 20 21
40%
99%
YTD 5 - YR 10 - YR
0.16
0.20
0.26
0.34
0.42
0.50
0.58
0.72
0.79 0.81
0.85
0.95
11 12 13 14 15 16 17 18 19 20 21 22
2.1x
Q4 NET LEVERAGE
~$1Bn
REPURCHASED
OVER LAST 10 YEARS
~$450MM
PAID OVER LAST 11 YEARS
C R E AT I N G VA LU E F O R SH A R E H O L D E R S
25
Share Performance Dividends Share Repurchases Deleveraging
3.5x
2.1x
2019PF 2021E
Growing Dividend Cumulative Buybacks Net Leverage
$
B
n
$
p
e
r
sh
a
re
Total Shareholder Return
~$4Bn
MARKET CAP INCREASE
OVER LAST 10 YEARS
(1) Share performance includes reinvested dividends and is as of 10.25.2021
(2) Financial information is pro forma to include a full year of Clariant Color acquisition
(1)
(2)
494%
SUSTA INAB ILITY R EPORT
Continuous ESG Improvement
26
• Updated 2030 Sustainability Goals
• Further disclosure on key Environmental,
Social, and Governance impacts
• Joined U.N.
Develop and implement solutions to end plastic
waste while supporting AEPW $1.5B
investment in key initiatives.
2 0 3 0 S U STA I NA B I L I T Y TA RG E TS
27
Sustainalytics 2021 ESG Risk Ranking
RANK
(1st = lowest risk)
PERCENTILE
(1st – lowest risk)
Chemicals
INDUSTRY
75/449 17th
Specialty Chemicals
SUBINDUSTRY
21/124 17th
AV I E N T E S G R AT I N G S
ISS November 2021 ESG Scores
SCORE
(1 = Best, 10 = Worst)
Environmental 2
Social 1
Governance 4
28
2 0 2 1 AV I E N T I N V E S TO R DAY
29
• Investor Day to be held December 9, 2021 in New York, NY
• The company will be doing a deep dive into its key long-
term growth drivers with a particular focus on sustainable
solutions
Revenue Growth Drivers
Long-Term
Growth Rate
Sustainable Solutions 8–12%
Healthcare 8–10%
Composites / 5G 10%
Growth in Asia / LATAM 5%
Other (GDP growth) 2–3%
Avient 6.5%
• Senior leadership team will also provide further details on
the Clariant Color integration, as well as capital allocation
priorities
PEER COMPARISONS
30
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
https://www.avient.com/products/thermoplastic-elastomers/versaflex-thermoplastic-elastomers
Formulated specifically for overmolding onto a wide variety of substrates, including PC/ABS, PA, PS, POM, PMMA, PETG, PK or COPE resins, for improved haptics and function
https://www.avient.com/sites/default/files/2023-01/AVNT Dec 2022 Earnings Presentation.pdf
Purchase price multiple rapidly declining on strength of
business and synergy capture
12
$133
$201
2019PF 2022E
12
Clariant Color EBITDA Growth
Purchase Price Multiple
10.8x
7.0x
6.4x
2019PF 2021 2022E w/ Full
Synergies
(1)
(1)
11.9%
16.3%
2019PF 2022E
EBITDA Margins
(1)
CLARIANT COLOR:
TRANSFORMATIONAL ACQUISITION
($ in millions)
(1) Financial information is pro forma to include a full year of Clariant Color business
SUNBELT PVC Resins DSS
20 Acquisitions
$4.8B Investment
$2.7B of Annual
Revenue
5 Divestments
$2.3B Proceeds
TPE
PP&S
HISTORI C SPECI AL IZATION THROUGH M& A
13
Distribution
DSM Protective
Materials
BOLT-ON AC QUI SITI ON HISTORY
14
Commercial
Resources
Operating Income
($ in millions)
Operating Margins
259
363
At Acquisition 2022E
$40
$139
At Acquisition 2022E
9%
22%
At Acquisition 2022E
Established Acquisitions
(> 7 years)
+ 40% + 248% + 1300 bps
I N V E S T T O G R O W
S P E C I A LT Y T R A N SF O R M ATI O N
T O D A Y
7%
46%
67%
86%
100%
0%
20%
40%
60%
80%
100%
2005 2010 2019 2021 2022 PF
%
o
f
A
d
ju
st
e
d
E
B
IT
D
A
• Commodity JVs
• Distribution
• Performance Products & Solutions
• Specialty Businesses
(1) Adjusted EBITDA is EBITDA excluding corporate costs and special items
(2) Pro forma for the acquisition of Dyneema® and divestiture of Distribution
(1
)
(2)
15
Healthcare
4%
Packaging
8%
Consumer
10%
Building &
Construction
43%
Industrial
15%
Transportation
14%
Energy
4%
Telecom.
2%
2006 2022 Pro Forma
Healthcare
8%
Packaging
23%
Consumer
21%
Building &
Construction
10%
Industrial
15%
Transportation
9%
Energy
4%
Telecom.
4%
Defense
6%
END MAR KET F OCUS ON LESS CYCL IC AL
I ND USTRI ES
16
14.8%
17.6%
21.0%
2018 2020 2022 PF
1.8%
2006
15.3%
16.2%
17.0%
2018PF 2020PF 2022E
CAI
2.7%
2006
SEM
SPEC IA LTY EBI TDA MA RGI N EX PANSION
17
• Portfolio transformation
accelerates growth in less
cyclical, higher margin end
markets
• Investments in our
composites platform
continue to drive margin
expansion
(1) (1)
(1) 2018 and 2020 financial information is pro forma to include a full year of Clariant Color acquisition
PORTFOLIO EVOLUTION OVER THE YEARS
18
Adj.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520RW%2520Baird%2520Global%2520Industrial%2520Conference.pdf
Use of Non-GAAP Measures
4POLYONE CORPORATION
INPUTS
FORMULATION
EXPERTISE
SERVICE VALUE
Base resins
Additives
Modifiers
Pigments
Expertise in
Polymer
Materials,
Services and
Solutions
OEMs
Brand Owners
Processers
Assemblers
InVisiO
SM
Color
Services
IQ Design Labs
LSS Customer
First
Specialty products & services
What We Do
Driving customer value
5POLYONE CORPORATION
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
$2.06
2009 2010 2011 2012 2013 2014 2015 2016*
*Recast for DSS in discontinued operations
PolyOne At a Glance
Performance
Products &
Solutions
22%
PolyOne
Distribution
34%
Specialty
Engineered
Materials
18%
Color
Additives
and Inks
26%
2016
Revenue by
Segment
Adjusted Earnings per Share
2016
Revenue by
Geography
United
States
60%
Europe
15%
Latin
America
9%
Canada
7%
Asia
10%
6POLYONE CORPORATION
2%
43%
76%
0%
20%
40%
60%
80%
100%
2005 2010 3Q 2017
%
o
f
O
p
e
ra
ti
n
g
I
n
c
o
m
e
*
*Operating Income excludes corporate charges and special items **LTM 3Q 2017
Specialty OI $5M $87M $275M**
JV’s Performance Products & Solutions
Specialty MixDistribution
Mix Shift Highlights Specialty Transformation
Distribution and Contract
Manufacturing Businesses
7POLYONE CORPORATION
2014 2015 2016 2017
2014 2015 2016 2017
Driving Growth
• Refreshed training curriculum
for sales force
• Upgraded capabilities to generate
and capture new business leads
• Expanded R&D resources to focus
on key platforms
2014 2015 2016 2017
Investment in Commercial Resources
Commercial Resource Additions*
Total Sales CallsSales Opportunity Funnel (in billions)
*Sales, Marketing & Technology headcount
8POLYONE CORPORATION
*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
Proof of Performance & 2020 Platinum Vision
20%+
20%+
12 - 14%
6.5 – 7.5%
15%
Consistently Deliver Double Digit Annual EPS Growth
2006 YTD 2017 2020
“Where we were” “Where we are” Platinum Vision
ROIC* 5.0% 13.8%
Operating Income % of Sales
Color, Additives & Inks 1.7% 16.4%
Specialty Engineered Materials 1.1% 13.1%
Performance Products & Solutions 5.5% 11.4%
Distribution 2.6% 6.6%
9POLYONE CORPORATION
$50
$116
$137
$0
$40
$80
$120
$160
$200
2012 2014 2016 2017
10.8%
11.3%
12.9%
13.8%
10.0%
11.0%
12.0%
13.0%
14.0%
15.0%
2012 2014 2016 3Q 2017 2020
Platinum
Vision
Free Cash Flow
(in millions)
ROIC*
*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
Free Cash Flow and Improving Returns
15.0%
>$200
10POLYONE CORPORATION
$0.16
$0.20
$0.24
$0.32
$0.40
$0.48
$0.54
$0.70
$-
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
$0.90
$1.00
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Annual Dividend
7 Consecutive Years of Increased Dividends
3-Year Dividend Plan
Announced 30% increase
to dividend in October
2017, reflecting strong and
sustainable cash flow as
well as confidence in future
earnings growth
Expect to increase annual
dividend 60% or more
cumulatively over next
three years
11POLYONE CORPORATION
$767M
Returning Cash to Shareholders
$0
$150
$300
$450
$600
$750
2011 2012 2013 2014 2015 2016 3Q
2017
Cumulative Share Repurchases
(in millions)
Since 2011, we have
returned over $950 million
to shareholders
$192 million returned
through dividends
$767 million returned
through share
repurchases
Have repurchased 20.8
million shares since
early 2013
$767M
12POLYONE CORPORATION
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 2.0
million shares
YTD 2017
Repurchased 20.8
million shares
since early 2013
6.5 million shares
are available for
repurchase under
the current
authorization
Increased annual
dividend by 30% to
$0.70 per share,
representing the
seventh consecutive
year of dividend
growth
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
13POLYONE CORPORATION
*Specialty Platform revenue from products introduced in last five years
Vitality Index Progression*
12%
42%
2006 2016
Target ≥ 35%
Innovation Drives Earnings Growth
Innovation Pipeline Potential
$20
$54
2006 2016
Research & Development Spending
($ millions)
Phase 1
Frame
Opportunity
12 Projects
Phase 2
Build Business
Case
10 Projects
Phase 3
Prototype
21 Projects
Phase 4
Scale-up &
Test Market
19 Projects
Phase 5
Commercial
Launch
10 Projects
$500 Million $1.4 Billion $700 Million
Total Specialty Addressable Market of over $2.6 Billion
14POLYONE CORPORATION
Key Innovation Growth Drivers
Composites
Barrier Additive
Technology
Fiber Colorants
Flame Retardant
Polymers
Increasing regulatory drive for halogen replacements
$400m addressable market
Drive to prevent oxygen, light and UV rays from affecting contents in PET
packaging, extending shelf life
$200m addressable market
60% of world fiber consumption is synthetic, need to simplify manufacturing
and eliminate waste
$300m addressable market
Polymer formulation and process engineering create a pipeline for next
generation materials
Drive to replace aluminum and steel with plastics without
compromising on strength
15POLYONE CORPORATION
Providing LSS services to
small/medium sized customers
54% of associates trained in LSS, with over
125 active black belts
Have trained over 30 customers in
LSS methodology
Providing training in Customer Centric
Selling Skills with customers
Providing Industrial design and color
services to small/medium sized
customers
On time delivery above 95%
Strengthening relationships:
Customer First Through World-Class Service
16POLYONE CORPORATION
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 reinvestment for growth while returning cash to shareholders
Strong and proven management team driving growth
and performance
Why Invest In PolyOne?