Avient Corporation · NYSE:AVNT
Avient — PolyOne — Gabelli & Company 5th Annual Specialty Chemical Conference (March 2014)
16 slides from Avient's conference presentation, Mar 20, 2014
Slide 1: PolyOne Investor Presentation
PolyOne Investor Presentation Gabelli & Company 5th Annual Specialty Chemical Conference March 20, 2014
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: PolyOne Commodity to Specialty Transformation
PolyOne Commodity to Specialty Transformation 2000-2005 2006 - 2009 2010 – 2013 2014 and beyond • Continue specialty transformation • 17 consecutive quarters of double- • Targeting $2.50 • Steve Newlin digit adjusted EPS Adjusted EPS by Appointed, growth 2015, nearly Chairman, President double 2013
Slide 5: Strategy and Execution Drive Results
Strategy and Execution Drive Results All time high of • 17 consecutive quarters of 350.00% $38.38 March 7th, 2014 double digit EPS growth 250.00% • 49% CAGR adjusted EPS expansion 2006-2013 150.00% 50.00% • 2013 stock price increased 73% versus 30% growth in the S&P -50.00% • More than seven fold in
Slide 6: PolyOne At A Glance
PolyOne At A Glance 2013 Revenues: $3.8 Billion 2013 Revenues: $3.8 Billion Latin Canada Asia America Europe 7% 7% Distribution 6% 14% 27% PP&S 20% United Specialty States 53% 66% End Markets EPS Misc. Appliance 2.50 2% $2.50 4% $2.25 Transportation $2.00 Adjusted Earnings Per Share 18% Building & $
Slide 7: Mix Shift Highlights Specialty Transformation
Mix Shift Highlights Specialty Transformation Old 2015 PolyOne Transformation Target 100% % of Operating Income* 80% 60% 65- 40% 75% 62% 20% 43% 34% 0% 2% 2005 2008 2010 2013 2015 Specialty OI $5M $46M $87M $195M Target JV's Performance Products & Solutions Distribution Specialty *Operating Income e
Slide 8: Proof of Performance & 2015 Goals
Proof of Performance & 2015 Goals 2006 2013 2015 “Where we were” “Where we are” Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 12.2% 12 – 16% Global Specialty Engineered Materials 1.1% 9.3% 12 – 16% Designed Structures & Solutions -- 5.6% 8 – 10% Performance Products & S
Slide 9: Bridge To $2.50 Adjusted EPS By 2015
Bridge To $2.50 Adjusted EPS By 2015 2015 EPS: $2.50 Accelerated Innovation & Mix Improvement Ongoing LSS Programs (50-100 bps/yr) Incremental share buybacks Mergers & Acquisitions Spartech accretion Mid single digit revenue CAGR 2013 EPS: $1.31 Page 9
Slide 10: Innovation Drives Earnings Growth
Innovation Drives Earnings Growth Research & Development Specialty Platform Specialty Platform Spending Vitality Index Progression* Gross Margin % ($ millions) $52.3 43.0% 30.7% 19.5% $20.3 14.3% 2006 2013 2006 2013 2006 2013 *Percentage of Specialty Platform revenue from products introduced in last
Slide 11: Unique and Innovative Solutions that Help Customers Win
Unique and Innovative Solutions that Help Customers Win Healthcare Packaging and Additive Technology Consumer Transportation Page 11
Slide 12: Debt Maturities & Pension Funding – 12/31/13
Debt Maturities & Pension Funding – 12/31/13 $800 Significant Debt Maturities Pension Funding** As of December 31, 2013 As of December 31, 2013 100% $700 ($ millions) 100% $600 90% $600 80% $500 70% $400 60% 60% $317 $300 50% $200 40% $100 30% $48 $0 20% 2015 2020 2023 2008 2013 Coupon Rates: 7.500%
Slide 13: Free Cash Flow and Strong Balance Sheet Fund Investment
Free Cash Flow and Strong Balance Sheet Fund Investment • Expanding our sales, • Repurchased ~5 million marketing, and technical shares in 2013 capabilities • 15 million shares • Investing in operational and are available for LSS initiatives (including repurchase under synergy capture) the current •
Slide 14: 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, incremental pricing power, and competitive advantage • Strong and proven management team driving growth a
Slide 15: 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 16: Platform sales and operating income
Platform sales and operating income (OI) 2006Y* 2013Y Global Specialty Engineered Materials sales $ 345.3 $ 615.5 Global Color, Additives and Inks sales 531.8 852.3 Designed Structures and Solutions sales - 597.4 Specialty Platform sales 877.1 2,065.2 Performance Products and Solutions sales 1,166.2
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