Avient Corporation · NYSE:AVNT
Avient — PolyOne — Jefferies 2013 Global Industrials Conference
18 slides from Avient's conference presentation, Aug 13, 2013
Slide 1: PolyOne Investor Presentation
PolyOne Investor Presentation Jefferies 2013 Global Industrials Conference August 13, 2013
Slide 2: Forward-Looking Statements
Forward – Looking Statements • In this presentation, statements that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or
Slide 3: Use of Non GAAP Measures
Use of Non GAAP Measures • This presentation includes the use of both GAAP (generally accepted accounting principles) and non-GAAP financial measures. The non-GAAP financial measures include: adjusted EPS, earnings before interest, tax, depreciation and amortization (EBITDA), adjusted EBITDA, net de
Slide 4: Strategy and Execution Drive Results
Strategy and Execution Drive Results • 15 consecutive quarters of All time closing high of 350.00% $29.48 double digit EPS growth August 1, 2013 250.00% • 42% CAGR adjusted EPS expansion 2006-2012 150.00% 50.00% • YTD stock price has increased 42% versus 20% growth in the S&P -50.00% -150.00% 400% i
Slide 5: Four Pillar Strategy
Four Pillar Strategy The World’s Premier Provider of Specialized Polymer Materials, Services & Solutions Page 5
Slide 6: PolyOne At A Glance
PolyOne At A Glance 2012 Revenues: $4.0 Billion* 2012 Revenues: $4.0 Billion* Latin Canada Asia America Distribution Europe 8% 14% 5% 3% 25% PP&S 15% United Specialty States 60% 70% End Markets* EPS Textiles 1% Appliance 2.50 $2.50 6% Transportation $2.25 16% $2.00 Adjusted Earnings Per Share Health
Slide 7: Mix Shift Highlights Specialty Transformation
Mix Shift Highlights Specialty Transformation Old 2015 PolyOne Transformation Target 100% % of Operating Income* 80% 60% 40% 65- 60% 62% 75% 20% 43% 45% 34% 0% 2% 2005 2008 2010 2012 2012 PF** H1'13 2015 Specialty OI $5M $46M $87M $114M $150M $98M Target JV's PP&S Distribution Specialty *Operating I
Slide 8: Proof of Performance & 2015 Goals
Proof of Performance & 2015 Goals 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 & So
Slide 9: Innovation Drives Earnings Growth
Innovation Drives Earnings Growth Research & Development Specialty Platform Specialty Platform Spending Vitality Index Progression* Gross Margin % 46.5% $44.7 31.1% $20.3 14.3% 11.5% ($ millions) 2006 TTM 2006 Q2 2013 2006 Q2 2013 Q2'13 *Percentage of Specialty Platform revenue from products introdu
Slide 10: We are Experts in Polymer Science and Formulation
We are Experts in Polymer Science and Formulation PolyOne Customer Marketplace Demands Performance Requirements Inputs Expertise Value Drivers Base Resins Polymer Science Additives Formulation Modifiers Chemistry Colorants Processing Innovative Specialized Polymer Materials, Pr
Slide 11: Positioned for Strong Growth
Positioned for Strong Growth 2015 Target Assumptions Rev: $5B • Operating margins in mid-range Adj. EPS: $2.50 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 s
Slide 12: First Half 2013 Financial Highlights
First Half 2013 Financial Highlights Adjusted EPS $0.75 • Adjusted EPS increased 26% over prior +26% $0.68 year first half $0.60 $0.54 $0.45 • Operating Income expanded 31% $0.30 H1'12 H1'13 versus first half 2012 Adjusted Operating Income (millions) $150.0 $132.6 • Specialty operating income up 42%
Slide 13: Debt Maturities & Liquidity Summary – 6/30/13
Debt Maturities & Liquidity Summary – 6/30/13 • Significant Debt Maturities $ 1,010 Other Debt 21 $800 Significant Debt Maturities As of June 30, 2013 • Total Debt at 6/30/13 $1,031 ($ millions) Less: Cash 392 $700 Net Debt $639 $600 $600 • Available Liquidity $500 Cash $392 $400 ABL Availability 31
Slide 14: Use of Cash
Use of Cash Organic Share Acquisitions Dividends Growth Repurchase • Expanding our • Targets that expand our: • Introduced a • Repurchased sales, marketing, quarterly dividend ~3.0M shares and technical • Specialty offering in Q1 2011 and YTD in 2013 capabilities is top • End market presence increas
Slide 15: Why Invest In PolyOne?
Why Invest In PolyOne? • Strong past performance demonstrates that our strategy and execution are working • Megatrends align with our strengths • Innovation and services provide differentiation and competitive advantage • Strong and proven management team driving growth and performance • Addressable
Slide 16: Schedule I Reconciliation of Non-GAAP Financial Measures
Schedule I Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with U.S. GAAP. Senior management uses adjusted o
Slide 17: Platform sales and operating income reconciliation
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
Slide 18: Reconciliation to Condensed Consolidated Balance Sheets
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) Net debt $ 638.8 Adjusted EBITDA Q3 2012 Q4 2012 Q1 2013 Q2 2013 Total PolyOne Income before income taxes $ 30.6 $
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