Slide 1: Welcome and Introduction
Welcome and Introduction Stephen D. Newlin (5) Page 5
Slide 2: Agenda
Agenda Welcome and Introduction Stephen D. Newlin Commercial Excellence Michael E. Kahler Specialization Julie A. McAlindon Operational Excellence Thomas J. Kedrowski Globalization Robert M. Patterson Global Color, Additives, and Inks John V. Van Hulle ColorMatrix Mark Frost Global Specialty Enginee
Slide 3: Today's Objectives
Today’s Objectives • Clear understanding of our mix improvement strategy • Instill confidence in PolyOne as a growth company • Provide exposure and build relationships with our exceptional management team Unveiling of 2015 Performance Targets Page 7
Slide 4: History of PolyOne – A Transformation
History of PolyOne – A Transformation The First 6 Years The Second 6 Years • Geon and M.A. Hanna • New CEO hired to • Globally organized along consolidate transform POL into three strategic platforms • Cultures clash – specialty business • Non-core equity commodity wins 18 of 20 officers new investm
Slide 5: Strategy and Execution Drive Results
Strategy and Execution Drive Results PolyOne $18 Stock Price 90% $16 70% $14 50% $12 S&P 500 (relative performance) $10 30% $8 10% $6 -10% $4 -30% $2 | | | | $0 -50% 2006 2007 2008 2009 2010 2011 2012 Page 9
Slide 6: Four Pillar Strategy
Four Pillar Strategy The World’s Premier Provider of Specialized Polymer Materials, Services & Solutions Page 10
Slide 7: Mix Shift Highlights Specialty Transformation Ahead of Schedule
Mix Shift Highlights Specialty Transformation Ahead of Schedule Old 2012 PolyOne Transformation Target “What We Said” 100% % of Operating Income* 80% 60% 40% 50% >50% 20% 42% 34% 0% 2% 2005 2008 2011 2011** 2012 Specialty OI $5M $46M $89M $117M “What We Said” JV's PP&S Distribution Specialty *Operat
Slide 8: Proof of Performance
Proof of Performance 2007 2012 Target 2011 Pro forma ColorMatrix “Where we were” “What we said” “Where we are” 1) Operating Income % Specialty 3.2% 10% - 12% 8.9% PP&S 6.1% 8% - 10% 7.2% Distribution 3.0% 4% - 5% 5.6% 2) Specialty Platform 20% >50% 50% sss% of Operating Income 3) Specialty Vitality
Slide 9: Elevating our Expectations and Yours
Elevating our Expectations and Yours 2011 2015 Target Pro forma ColorMatrix “Where we are” “Where we expect to be” 1) Operating Income % Specialty 8.9% 12 – 16% PP&S 7.2% 9 – 12% Distribution 5.6% 6 – 7.5% 2) Specialty Platform 50% 65 – 75% % of Operating Income 3) ROIC* (after-tax) 10% 15% 4) Adjus
Slide 10: How do we get there?
How do we get there? • Four pillar strategy, coupled with our ability to execute is driving results • Strong leadership team driving growth & executing • Innovation and services provide differentiation and competitive advantage • Favorable megatrends align with PolyOne strengths The New PolyOne: A S
Slide 11: 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 • Housing starts at 85% of 50 year norm by 2015 • No investment in incremental PP&S capacity • Completion of 2-3 midsize accretive