Avient Corporation · NYSE:AVNT
Avient — PolyOne — Sidoti & Company 17th Annual Emerging Growth Institutional Investor Forum (March 2013)
19 slides from Avient's conference presentation, Mar 19, 2013
Slide 1: PolyOne Investor Presentation
PolyOne Investor Presentation Sidoti d and d Company 17th Annuall Emerging Growth h Institutional Investor Forum March 19, 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. In particular, statements in this press release regardi
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 i l d adjusted include: dj t d EPS, EPS earnings i b before f iinterest, t t ttax, d depreciation i ti and d amortiza
Slide 4: Strategy and Execution Drive Results
Strategy and Execution Drive Results PolyOne $24 Stock Price 90% $22 70% $20 $18 S&P 500 (relative performance) 50% $16 $14 30% $12 $10 10% $8 ‐10% $6 $ $4 ‐30% $2 | $0 ‐50% 50% 2006 2007 2008 2009 2010 2011 2012 2013 Page 4
Slide 5: Four Pillar Strategy
Four Pillar Strategy The World’s World s Premier Provider of Specialized Polymer Materials, Services & Solutions Page 5
Slide 6: Spartech – Compelling Strategic Rationale
Spartech – Compelling Strategic Rationale • Spartech expands PolyOne’s specialty portfolio with adjacent technologies in attractive end markets Bolt‐on Bolt on acquisition with opportunity for global expansion expansion, as only 6% of Spartech’s revenues are outside of North America • PolyOne has
Slide 7: Mix Shift Highlights Specialty Transformation
Mix Shift Highlights Specialty Transformation Old 2015 PolyOne Transformation Target 100% % off Operating Income* 80% 60% 40% 65 – 75% 20% 43% 45% 34% 0% 2% 2005 2008 2010 2012 2015 Specialty OI $5M $46M $87M $114M Target JV's PP&S Distribution Specialty *Operating Income excludes corporate charges
Slide 8: Proof of Performance
Proof of Performance 2007 2012 2015 “Where we “Where Where we were were” “Where Where we are are” expect to be" 1) Operating Income % Specialty 3.2% 9.1% 12 – 16% PP&S 6.1% 9.0% 9 – 12% Distribution 3.0% 6.4% 6 – 7.5% 2) Specialty Platform sss% of Operating Income 20% 45% 65 – 75% 3) ROIC* (after‐ta
Slide 9: Proof of Performance – Spartech Opportunity
Proof of Performance Spartech Opportunity PolyOne Spartech Opportunity Intermediate 2006 2012 Today Goal “Where we “Where we “Where “Where we were” were are” are Spartech is is”* can go go” Specialty Operating 1.5% 9.1% 2.2% 8.0% – 10.0% Margin *Pro Forma results include Spartech corporate allocatio
Slide 10: At a Glance – PolyOne
At a Glance PolyOne 2012 Revenues: $4.2 Billion* 2012 Revenues: $4.2 Billion* Latin Canada Asia America Europe 8% 5% 3% Distribution 14% 23% PP&S 20% United Specialty States 57% 70% End Markets* EPS Growth Textiles 2% Appliance 5% $1.40 Transportation 1.20 16% $1.20 Adjusted Earnings Per Share Healt
Slide 11: At a Glance – Specialty Solutions
At a Glance Specialty 2012 Revenues: $2.4 Billion* Solutions United U it d States 59% Europe 23% Asia 9% Latin America Canada 5% 4% End Markets* Expanding Profits Textiles 12-16% HealthCare 2% Operating Income % of Sales 5% Appliance Transportation 4% 16% Building & Construction C t ti Misc. 11% 9.1
Slide 12: At a Glance – Designed Structures and Solutions
At a Glance Designed Structures and Solutions 2012 Revenues: $0.85 Billion* Solutions United States 84% Latin America Canada Europe 7% 7% 2% 2012 Revenue by Industry Segment* Expanding Profits** Distribution & Textiles Appliance Pool & Spa Thermoform 2% 4% Building & Construction Operating Income %
Slide 13: Positioned for Earnings Growth
Positioned for Earnings Growth 2015 Target Assumptions Rev: $5B • High single digit organic Adj. EPS: $2.50 revenue CAGR • 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 • No divesti
Slide 14: Proforma Debt Maturities & Liquidity Summary – 12/31/12
Proforma Debt Maturities & Liquidity Summary – 12/31/12 (Reflecting Financing & Spartech Acquisition) Debt Maturities $400 As of December 31, 2012 • Total Debt at 12/31/12 $1,010 $300 ($ millions) $360 $297 Less: Cash h 213 $200 Net Debt $797 $100 $0 $50 2015 2017 2020 • Available Liquidity Interest
Slide 15: Use of Cash
Use of Cash Organic Share Acquisitions Dividends G Growth Repurchase • Expanding our • Targets T t that th t expandd our: • Introduced a • Repurchased 1.2 12 sales, marketing, quarterly dividend million shares in and technical • Specialty offering in Q1 2011 and 2012 capabilities is top • End market
Slide 16: Why Invest In PolyOne?
Why Invest In PolyOne? • Strong past performance demonstrates that our strategy gy and execution are workingg • Megatrends align with our strengths • Innovation and services provide differentiation and competitive advantage • Strong and proven management team driving growth and performance The New P
Slide 17: 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 18: Platform sales and operating income
Platform sales and operating income (OI) 2012Y 2012PF Global Specialty Engineered Materials Sales $ 543.6 $ 779.5 Global Color, Additives and Inks Sales 703.5 753.8 Designed Structures & Solutions 847.4 Specialty Platform Sales $ 1,247.1 $ 2,380.7 Performance Products and Solutions Sales 837.0 902.8
Slide 19: Specialty Platform Gross Margin Percentage
Specialty Platform Gross Margin Percentage 2006 2012 Global Specialty Engineered Materials Sales $ 345.3 $ 543.6 Global Color, Additives and Inks Sales 531.8 703.5 Specialty Platform Sales $ 877.1 $ 1,247.1 Global Specialty Engineered Materials Gross Margin $ 41.6 $ 129.8 Global Color, Additives and