https://www.avient.com/sites/default/files/2021-04/versalloy-medical-tubing-case-study.pdf
THE CHALLENGE
A leading North American manufacturer of
polypropylene (PP) hose for medical applications,
including laser surgery, respiratory care and sleep
apnea equipment, faced a challenge with its existing
thermoplastic vulcanizate (TPV).
The Avient team
assessed the application’s technical and operational
requirements, and recommended GLS Versalloy™ XL-
9045-1 alloy in 45 Shore A durometer, an FDA-compliant
medical TPV grade designed for overmolding onto PP.
https://www.avient.com/sites/default/files/2023-06/Cesa_ Stat Antistatic Additives for Automotive - Application Bulletin.pdf
APPLICATION BULLETIN
PRODUCT NAME SUITABLE FOR APPLICATION LDR
Cesa™ Stat OCA0025695 PP Permanent reduction of dust attraction in interior From 5%
Cesa™ Stat OCA0025609 PC/ABS, PA6, PC/ASA Permanent reduction of dust attraction in interior From 8%
Cesa™ Stat OCA0025603 LDPE, TPE Permanent reduction of dust attraction in interior From 7%
The graph shows the measurement
of the charge decay time at 23°C/50%
r.H. on 80x80x2mm IM plaques.
Even after wash-
ing the surface with detergent and
water with 5 repetitions, the antistatic
effect remains unchanged.
0
500
1,000
1,500
2,000
2,500
3,000
0 20 40 60 80 100
Vo
lt
ag
e
(V
)
Time (s)
PP talc filled
5% Cesa Stat OCA0025695
5% Cesa Stat OCA0025695 wash end
www.avient.com
Copyright © 2023, Avient Corporation.
https://www.avient.com/sites/default/files/2023-10/reSound REC Automotive Interior Grades Product Bulletin.pdf
Available
in 80 and 90 Shore A hardness, they are injection
moldable and bond well to polypropylene (PP).
KEY CHARACTERISTICS
• 35–45% PCR/PIR content
• Meet automotive standards for VOC, FOG,
and odor
• Colored black, additional colors are possible
• Customizable formulations
• Overmoldable to PP
MARKETS & APPLICATIONS
The reSound REC 7310 series provides a more
sustainable TPE choice for automotive interior
components and delivers comparable performance
to their traditional counterparts.
https://www.avient.com/sites/default/files/2024-03/Gravi-Tech Product Bulletin_A4.pdf
KEY CHARACTERISTICS
The primary features and benefits of Gravi-Tech
formulations are:
• Customized density, offering a wide range
of specific gravities from 1.2 to 11 gm/cm3
• Broad modulus range, from very flexible
to very rigid grades
• Corrosion resistance, withstanding oxidation
for long-term use and benefit
• Chemical resistance, withstanding fuels, oils
and other harsh chemicals
• Metallization and electroplating, delivering
the look and feel of metal
Additional features include:
• Design flexibility and processing ease
• Good impact strength
• Elevated heat deflection temperature
PRODUCT BULLETIN
TARGET MARKET AND APPLICATIONS
Gravi-Tech composites are an excellent choice for applications in a full range of markets, including:
Consumer
Luxury packaging, golf clubs, fishing tackle,
casino/gaming chips, exercise weights, hunting
supplies, cutlery, appliances and hunting
ammunition
Healthcare
X-ray shielding, nuclear medicine transport
containers, and laboratory furniture and
equipment
Industrial
Ammunition, reactor shielding, vibration and
acoustical damping, military/tactical equipment,
airport x-ray shielding, various food ware, building
and construction equipment, inertial weighting,
and underwater cable weighting
Base Resin Specific Gravities
Nylon 6 2.3, 2.7, 3.5, 4, 4.5, 5, 6
TPE 2.6, 3.9
TPU 2.6, 3, 4.5, 7.5, 9
PP 1.15–4
ABS 1.2–3
PPS 4
Nylon 12 4, 6.9, 11
TECHNICAL PROPERTIES
Copyright © 2024, Avient Corporation.
https://www.avient.com/sites/default/files/2024-09/Garage Door Composite Panel Application Bulletin.pdf
POLYSTRAND™ THERMOPLASTIC PANELS
MATERIALS AND CHARACTERISTICS
Facesheet Resins
Polypropylene (PP)
PETG
Facesheet
Reinforcement
Glass Fiber
Core Materials
PET Foam
PP Honeycomb
Characteristics
Lightweight
Excellent Impact Resistance
Formable
Value Engineered Facesheets
Recyclable
2-layer
Composite Laminate
0°/90°
Unidirectional Composite
Tape
3-layer
Composite Laminate
0°/90°/0°
4-layer
Composite Laminate
0°/90°/90°/0°
POLYSTRAND™ CONTINUOUS FIBER LAMINATES
Configuration
Wood & Polystrand X-ply
0°/90°
Aluminum & Polystrand X-ply
0°/90°
Common Material Reinforcements
POLYSTRAND™ COMPOSITE SANDWICH PANELS
Configuration
Fiber Reinforced Facesheet
Fiber Reinforced Facesheet
Core Material
https://www.avient.com/sites/default/files/2025-03/CAI Solutions for Recycled Resins in E_E Applications Product Bulletin _A4.pdf
Cesa™ Unify™ A4R Polyolefin Compatibilizer
helps bring incompatible polymers like PP
and PE together by forming them into a
homogenous polymer mixture which increases
the mechanical properties of the recycled
polymer
Cesa™ Flame Retardant Additives enable a
fire performance in line with different levels
of Glow Wire temperatures (IEC 60685-2-12)
for various recycled resins including PP, PC,
and PS.
https://www.avient.com/sites/default/files/resources/POL%2520BofA%2520Basic%2520Materials%2520IR%2520Presentation%2520w%2520non-GAAP%252012%252011%25202013.pdf
Use of Non-GAAP Measures
Page 3
-150.00%
-50.00%
50.00%
150.00%
250.00%
350.00%
PolyOne S&P 500
All time high of
$34.47
December 9th, 2013
• 16 consecutive quarters of
double digit EPS growth
• 42% CAGR adjusted EPS
expansion 2006-2012
• YTD stock price has increased
63% versus 27% growth in the
S&P
• More than six fold increase in
market cap: $0.5b $3.3b
Strategy and Execution Drive Results
Page 4
The World’s Premier Provider of Specialized
Polymer Materials, Services & Solutions
Four Pillar Strategy
Page 5
PP&S
15%
Specialty
60%
Distribution
25%
0.12
0.27 0.21
0.13
0.68
0.82
1.00
2.50
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
$2.50
2006 2007 2008 2009 2010* 2011* 2012* 2015
Target
A
dj
us
te
d
Ea
rn
in
gs
P
er
S
ha
re
Appliance
6%
Building &
Construction
13%
Wire & Cable
9%
Electrical &
Electronics
4%
Consumer
9%
Packaging
18%
Industrial
10%
Misc.
5%
HealthCare
9%
Transportation
16%
Textiles
1%
United
States
70%
Europe
14%
Canada
8%
Asia
5%
Latin
America
3%
2012 Revenues: $4.0 Billion*
End Markets*
2012 Revenues: $4.0 Billion*
EPS
Page 6
* Pro Forma includes FY2012 results for Spartech (11/03/12 YE) and Glasforms & excludes discontinued operations
PolyOne
At A Glance
* Restated to exclude discontinued operations
Old
PolyOne Transformation
*Operating Income excludes corporate charges and special items
2%
34%
43%
63%
65-
75%
0%
20%
40%
60%
80%
100%
2005 2008 2010 YTD 2013 2015
%
o
f O
pe
ra
ti
ng
In
co
m
e*
JV's PP&S Distribution Specialty
Specialty OI $5M $46M $87M $153M Target
Mix Shift Highlights Specialty Transformation
2015
Target
Page 7
2006 YTD 2013 2015
Where we were Where we are
Organic Consolidated
Target
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 12.8% 12.8% 12 – 16%
Global Specialty Engineered
Materials 1.1% 10.8% 8.9% 12 – 16%
Designed Structures & Solutions — — 5.0% 8 – 10%
Performance Products &
Solutions 5.5% 8.0% 8.2% 9 – 12%
Distribution 2.6% 6.1% 6 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 63% 65 – 75%
3) ROIC* (after-tax) 5.0% 9.4% 15%
4) Adjusted EPS Growth N/A 28%
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
Page 8
*Percentage of Specialty Platform revenue from products introduced in last five years
19.5%
44.0%
2006 Q3 2013
$20.3
$46.6
2006 TTM
Q3'13
14.3%
31.0%
2006 Q3 2013
Research & Development
Spending
Specialty Platform
Vitality Index Progression*
Innovation Drives Earnings Growth
($ millions)
Specialty Platform
Gross Margin %
Page 9
We are Experts in Polymer Science and Formulation
Polymer Science
Formulation
Chemistry
Processing
Inputs
Base Resins
Additives
Modifiers
Colorants
Specialized
Polymer Materials,
Services, and Solutions
Expertise
Satisfied
Consumers
PolyOne Customer
Innovative
Products & Services
Marketplace Demands
Performance Requirements
Value Drivers
Page 10
Positioned for Strong Growth
2015 Target
Rev: $5B
Adj.
EPS: $2.50
Assumptions
• Mid single digit revenue CAGR
• Operating margins in mid-range
of 2015 targets
• No global recession
• No investment in incremental
PP&S capacity
• Housing starts at 85% of 50 year
norm by 2015
• Remain comfortably below 3X Net
Debt / EBITDA
Page 11
2012
Rev: $2.9B
Adj.
Platform sales and operating income (OI) 2006Y*
YTD 2013
Organic’ Acquisitions**
YTD 2013’
Consolidated
Global Specialty Engineered Materials Sales $ 345.3 $ 427.2 $ 113.6 $ 540.8
Global Color, Additives and Inks Sales 531.8 608.0 45.7 653.7
Designed Structures and Solutions Sales - - 428.2 428.2
Specialty Platform Sales $ 877.1 $ 1,035.2 $ 587.5 1,622.7
Performance Products and Solutions Sales 1,166.2 473.6 39.2 512.8
PolyOne Distribution Sales 732.8 818.1 - 818.1
Corporate and eliminations (153.7) (106.0) - (106.0)
Total Sales $ 2,622.4 $ 2,220.9 $ 626.7 $ 2,847.6
Global Specialty Engineered Materials OI $ 3.9 $ 46.1 $ 2.1 $ 48.2
Global Color, Additives and Inks OI 8.9 78.0 5.4 83.4
Designed Structures & Solutions OI - - 21.4 21.4
Specialty Platform OI $ 12.8 $ 124.1 $ 28.9 $ 153.0
Performance Products and Solutions OI 64.2 38.1 3.7 41.8
PolyOne Distribution OI 19.2 49.7 - 49.7
Sunbelt Joint Venture OI 102.9 - - -
Corporate and eliminations (4.6) (39.5) - (39.5)
Special items in OI 39.1 (22.2) - (22.2)
Operating income GAAP $ 233.6 $ 150.2 $ 32.6 $ 182.8
Sunbelt equity income (107.0) - - -
Special items in OI (39.1) 22.2 - 22.2
Operating income adjusted $ 87.5 $ 172.4 $ 32.6 $ 205.0
Global Specialty Engineered Materials - OI % of sales 1.1% 10.8% 1.8% 8.9%
Global Color, Additives and Inks - OI % of sales 1.7% 12.8% 11.8% 12.8%
Designed Structures & Solutions - OI % of sales - - 5.0% 5.0%
Specialty platform OI - % of sales 1.5% 12.0% 5.0% 9.4%
PP&S operating OI - % of sales 5.5% 8.0% 9.4% 8.2%
Distribution OI - % of sales 2.6% 6.1% - 6.1%
PolyOne OI adjusted - % of sales 3.3% 7.8% 5.2% 7.2%
* Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
** Spartech and Glasforms results for the nine months ended September 30, 2013.
https://www.avient.com/sites/default/files/2024-07/CCG Application Snapshot Evoluscend Mold Release_Final.pdf
PowerPoint Presentation
M E D I C A L C O N N E C T O R S
• Ongoing production with no change to regular set up
• Excellent processing and demolding performance
• Color stability during processing
• Excellent chemical and impact resistance
• Enabled efficient ongoing production rates without
changing any processing parameters
• Safeguarded color stability and transparency
during processing for optimal aesthetics
• Ensured regulatory requirements for
biocompatible ISO109931 and FDA were met
• Provided a solution effective across a range of
high-temperature polymers, including PEEK,
PPSU, PES, PSU, PEI, LCP, and PPS
Colorant Chromatics Evoluscend non-
PFAS* high-temperature polymer mold release
additive
KEY REQUIREMENTS WHY AVIENT
AVIENT SOLUTION
PRODUCTIVITY + REGULATORY
LEARN MORE
E L E C T R I C A L
C O M P O N E N T O E M
(*) A non-PFAS additive manufactured without non-intentionally added (NIA) PFAS or PTFE.
(*) manufactured without intentionally added PFAS and without PTFE
(1) refers to sulfone products only
https://www.avient.com/products/polymer-additives/processing-enhancement-additives/colorant-chromatics-evoluscend-non-pfas-high-temperature-mold-release-additive
Slide Number 1
https://www.avient.com/sites/default/files/resources/POL%2520Credit%2520Suisse%2520IR%2520Presentation%2520w%2520non-GAAP%25209%252017%25202013.pdf
Use of Non-GAAP Measures
Page 3
-150.00%
-50.00%
50.00%
150.00%
250.00%
350.00%
PolyOne S&P 500
Strategy and Execution Drive Results
Page 4
All time closing high of
$29.48
August 1, 2013
• 15 consecutive quarters of
double digit EPS growth
• 42% CAGR adjusted EPS
expansion 2006-2012
• YTD stock price has
increased 42% versus 20%
growth in the S&P
• 275% increase in market cap:
$0.7b $2.6b since 2006
The World’s Premier Provider of Specialized
Polymer Materials, Services & Solutions
Four Pillar Strategy
Page 5
PP&S
15%
Specialty
60%
Distribution
25%
0.12
0.27 0.21
0.13
0.68
0.82
1.00
2.50
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
$2.50
2006 2007 2008 2009 2010* 2011* 2012* 2015
Target
A
dj
us
te
d
Ea
rn
in
gs
P
er
S
ha
re
Appliance
6%
Building &
Construction
13%
Wire & Cable
9%
Electrical &
Electronics
4%
Consumer
9%
Packaging
18%
Industrial
10%
Misc.
5%
HealthCare
9%
Transportation
16%
Textiles
1%
United
States
70%
Europe
14%
Canada
8%
Asia
5%
Latin
America
3%
2012 Revenues: $4.0 Billion*
End Markets*
2012 Revenues: $4.0 Billion*
EPS
Page 6
* Pro Forma includes FY2012 results for Spartech (11/03/12 YE) and Glasforms & excludes discontinued operations
PolyOne
At A Glance
* Restated to exclude discontinued operations
Old
PolyOne Transformation
*Operating Income excludes corporate charges and special items
**Pro Forma results include Spartech and Glasforms acquisitions, Specialty Coatings reclass and excludes discontinued operations
2%
34%
43% 45%
60%
65-
75%
0%
20%
40%
60%
80%
100%
2005 2008 2010 2012 2012 PF** 2015
%
o
f O
pe
ra
ti
ng
In
co
m
e*
JV's PP&S Distribution Specialty
Specialty OI $5M $46M $87M $114M $150M Target
Mix Shift Highlights Specialty Transformation
2015
Target
Page 7
2006 H1 2013 2015
Where we were Where we are
Organic Consolidated
Target
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 12.7% 12.6% 12 – 16%
Global Specialty Engineered
Materials 1.1% 10.9% 9.2% 12 – 16%
Designed Structures & Solutions — — 4.4% 8 – 10%
Performance Products &
Solutions 5.4% 8.1% 8.2% 9 – 12%
Distribution 2.6% 6.1% 6.1% 6 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 62% 65 – 75%
3) ROIC* (after-tax) 5.0% 9.4% 15%
4) Adjusted EPS Growth N/A 26%
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
Page 8
*Percentage of Specialty Platform revenue from products introduced in last five years
19.5%
46.5%
2006 Q2 2013
$20.3
$44.7
2006 TTM
Q2'13
14.3%
31.1%
2006 Q2 2013
Research & Development
Spending
Specialty Platform
Vitality Index Progression*
Innovation Drives Earnings Growth
($ millions)
Specialty Platform
Gross Margin %
Page 9
We are Experts in Polymer Science and Formulation
Polymer Science
Formulation
Chemistry
Processing
Inputs
Base Resins
Additives
Modifiers
Colorants
Specialized
Polymer Materials,
Services, and Solutions
Expertise
Satisfied
Consumers
PolyOne Customer
Innovative
Products & Services
Marketplace Demands
Performance Requirements
Value Drivers
Page 10
Positioned for Strong Growth
2015 Target
Rev: $5B
Adj.
EPS: $2.50
Assumptions
• Operating margins in mid-range
of 2015 targets
• No global recession
• No investment in incremental
PP&S capacity
• Completion of 2-3 midsize
accretive acquisitions
• Housing starts at 85% of 50 year
norm by 2015
• Mid single digit revenue CAGR
• Remain comfortably below 3X Net
Debt / EBITDA
Page 11
2012
Rev: $2.9B
Adj.
Average Debt Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Average
PolyOne Debt $ 705.8 $ 705.2 $ 706.9 $ 1,055.5 $ 1,031.2 $ 840.9
Average Equity Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Average
PolyOne shareholders’ equity $ 604.3 $ 629.3 $ 629.1 $ 871.8 $ 993.9 $ 745.7
Platform sales and operating income (OI) H1 2012*** H1 2013*** H1 2013****
Global Specialty Engineered Materials Sales $ 280.9 $ 352.0 $ 285.1
Global Color, Additives and Inks Sales 413.9 434.7 409.2
Designed Structures & Solutions Sales - 240.4 -
Specialty Platform Sales $ 694.8 $ 1,027.1 $694.3
Performance Products and Solutions Sales 336.0 336.7 317.5
PolyOne Distribution Sales 533.6 543.1 543.1
Corporate and Eliminations (62.3) (68.2) (68.2)
Total Sales $ 1,502.1 $ 1,838.7 $ 1,486.7
Global Specialty Engineered Materials OI $ 24.6 $ 32.5 $ 31.2
Global Color, Additives and Inks OI 44.0 54.7 52.0
Designed Structures & Solutions OI - 10.5 -
Specialty Platform OI $ 68.6 $ 97.7 $ 83.2
Performance Products and Solutions OI 19.3 27.5 25.7
PolyOne Distribution OI 33.4 33.1 33.1
Corporate and eliminations (20.3) (25.7) (20.3)
Special items in OI (20.3) (11.4) (20.3)
Operating income - GAAP $ 80.7 $ 121.2 $ 101.4
Special items in OI 20.3 11.4 20.3
Operating income adjusted $ 101.0 $ 132.6 $ 121.7
Global Specialty Engineered Materials - OI % of sales
8.8% 9.2% 10.9%
Global Color, Additives and Inks - OI % of sales 10.6% 12.6% 12.7%
Designed Structures & Solutions - OI % of sales - 4.4% -
Specialty platform - OI % of sales 9.9% 9.5% 12.0%
PP&S operating - OI % of sales 5.7% 8.2% 8.1%
Distribution OI - % of sales 6.3% 6.1% 6.1%
PolyOne OI adjusted - % of sales 6.7% 7.2% 8.2%
Reconciliation to Condensed Consolidated Balance Sheets H1 2013
Short-term debt and current portion of long-term debt $ 8.7
Long-term debt 1,022.5
Less cash and cash equivalents (392.4)
Specialty Platform Gross Margin Percentage 2006Y* Q2 2013****
Global Specialty Engineered Materials Sales $ 345.3 $ 143.5
Global Color, Additives and Inks Sales 531.8 207.5
Specialty Platform Sales $ 877.1 $ 351.0
Global Specialty Engineered Materials Gross Margin $ 41.6 $ 37.3
Global Color, Additives and Inks Gross Margin 83.6 71.8
Specialty Platform Gross Margin $ 125.2 $ 109.1
Specialty Platform Gross Margin Percentage 14.3% 31.1%
* 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%2520Investor%2520Presentation%2520Jefferies%25202013%2520Global%2520Industrial%2520Conference_Posting.pdf
Use of Non GAAP Measures
Page 3
-150.00%
-50.00%
50.00%
150.00%
250.00%
350.00%
PolyOne S&P 500
Strategy and Execution Drive Results
Page 4
All time closing high of
$29.48
August 1, 2013
• 15 consecutive quarters of
double digit EPS growth
• 42% CAGR adjusted EPS
expansion 2006-2012
• YTD stock price has
increased 42% versus 20%
growth in the S&P
400% increase in market cap,
from $0.7b to $2.8b since
2006
The World’s Premier Provider of Specialized
Polymer Materials, Services & Solutions
Four Pillar Strategy
Page 5
PP&S
15%
Specialty
60%
Distribution
25%
0.12
0.27 0.21
0.13
0.68
0.82
1.00
2.50
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
$2.50
2006 2007 2008 2009 2010* 2011* 2012* 2015
Target
A
dj
us
te
d
Ea
rn
in
gs
P
er
S
ha
re
Appliance
6%
Building &
Construction
13%
Wire & Cable
9%
Electrical &
Electronics
4%
Consumer
9%
Packaging
18%
Industrial
10%
Misc.
5%
HealthCare
9%
Transportation
16%
Textiles
1%
United
States
70%
Europe
14%
Canada
8%
Asia
5%
Latin
America
3%
2012 Revenues: $4.0 Billion*
End Markets*
2012 Revenues: $4.0 Billion*
EPS
Page 6
* Pro Forma includes FY2012 results for Spartech (11/03/12 YE) and Glasforms & excludes discontinued operations
PolyOne
At A Glance
* Restated to exclude discontinued operations
Old
PolyOne Transformation
*Operating Income excludes corporate charges and special items
**Pro Forma results include Spartech and Glasforms acquisitions, Specialty Coatings reclass and excludes discontinued operations
2%
34%
43% 45%
60% 62%
65-
75%
0%
20%
40%
60%
80%
100%
2005 2008 2010 2012 2012 PF** H1'13 2015
%
o
f O
pe
ra
ti
ng
In
co
m
e*
JV's PP&S Distribution Specialty
Specialty OI $5M $46M $87M $114M $150M $98M Target
Mix Shift Highlights Specialty Transformation
2015
Target
Page 7
2006 H1 2013 2015
Where we were Where we are Target
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 12.6% 12 – 16%
Global Specialty Engineered
Materials 1.1% 9.2% 12 – 16%
Designed Structures & Solutions -- 4.4% 8 – 10%
Performance Products &
Solutions 5.4% 8.3% 9 – 12%
Distribution 2.6% 6.1% 6 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 62% 65 – 75%
3) ROIC* (after-tax) 5.0% 9.4% 15%
4) Adjusted EPS Growth N/A 26%
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
Page 8
*Percentage of Specialty Platform revenue from products introduced in last five years
11.5%
46.5%
2006 Q2 2013
$20.3
$44.7
2006 TTM
Q2'13
14.3%
31.1%
2006 Q2 2013
Research & Development
Spending
Specialty Platform
Vitality Index Progression*
Innovation Drives Earnings Growth
($ millions)
Specialty Platform
Gross Margin %
Page 9
We are Experts in Polymer Science and Formulation
Polymer Science
Formulation
Chemistry
Processing
Inputs
Base Resins
Additives
Modifiers
Colorants
Specialized
Polymer Materials,
Services, and Solutions
Expertise
Satisfied
Consumers
PolyOne Customer
Innovative
Products & Services
Marketplace Demands
Performance Requirements
Value Drivers
Page 10
Positioned for Strong Growth
2015 Target
Rev: $5B
Adj.
EPS: $2.50
Assumptions
• Operating margins in mid-range
of 2015 targets
• No global recession
• No investment in incremental
PP&S capacity
• Completion of 2-3 midsize
accretive acquisitions
• Housing starts at 85% of 50 year
norm by 2015
• Mid single digit revenue CAGR
• Remain comfortably below 3X Net
Debt / EBITDA
Page 11
2012
Rev: $2.9B
Adj.
Average Debt Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Average
PolyOne Debt $ 705.8 $ 705.2 $ 706.9 $ 1,055.5 $ 1,031.2 $ 840.9
Average Equity Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Average
PolyOne shareholders’ equity $ 604.3 $ 629.3 $ 629.1 $ 871.8 $ 993.9 $ 745.7
Platform sales and operating income (OI) H1 2012*** H1 2013***
Global Specialty Engineered Materials Sales $ 280.9 $ 352.0
Global Color, Additives and Inks Sales 413.9 434.7
Designed Structures & Solutions Sales - 240.4
Specialty Platform Sales 694.8 1,027.1
Performance Products and Solutions Sales 336.0 336.7
PolyOne Distribution Sales 533.6 543.1
Corporate and Eliminations (62.3) (68.2)
Total Sales $ 1,502.1 $ 1,838.7
Global Specialty Engineered Materials OI $ 24.6 $ 32.5
Global Color, Additives and Inks OI 44.0 54.7
Designed Structures & Solutions OI - 10.5
Specialty Platform OI $ 68.6 $ 97.7
Performance Products and Solutions OI 19.3 27.5
PolyOne Distribution OI 33.4 33.1
Corporate and eliminations (20.3) (25.7)
Special items in OI (20.3) (11.4)
Operating income - GAAP $ 80.7 $ 121.2
Special items in OI 20.3 11.4
Operating income adjusted $ 101.0 $ 132.6
Global Specialty Engineered Materials - OI % of sales
8.8% 9.2%
Global Color, Additives and Inks - OI % of sales 10.6% 12.6%
Designed Structures & Solutions – OI % of sales - 4.4%
Specialty platform OI % of sales 9.9% 9.5%
PP&S operating OI % of sales 5.7% 8.2%
Distribution OI % of sales 6.3% 6.1%
PolyOne OI adjusted, % of sales 6.7% 7.2%
Reconciliation to Condensed Consolidated Balance Sheets H1 2013
Short-term debt and current portion of long-term debt $ 8.7
Long-term debt 1,022.5
Less cash and cash equivalents (392.4)
Specialty Platform Gross Margin Percentage 2006Y* Q2 2013****
Global Specialty Engineered Materials Sales $ 345.3 $ 143.5
Global Color, Additives and Inks Sales 531.8 207.5
Specialty Platform Sales $ 877.1 $ 351.0
Global Specialty Engineered Materials Gross Margin $ 41.6 37.3
Global Color, Additives and Inks Gross Margin 83.6 71.8
Specialty Platform Gross Margin $ 125.2 $ 109.1
Specialty Platform Gross Margin Percentage 14.3% 31.1%
* Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.