Avient Corporation · NYSE:AVNT
Avient — PolyOne — Deutsche Bank 2013 Global Industrials and Basic Materials Conference
17 slides from Avient's conference presentation, Jun 12, 2013
Slide 1: PolyOne Investor Presentation
PolyOne Investor Presentation Deutsche Bank 2013 Global Industrials and Basic Materials Conference June 12, 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 • Since 2006, PolyOne stock has expanded approximately 300% vs. a 30% increase in the S&P 500 350.00% All time closing high of 300.00% $26.63 May 28, 2013 250.00% 200.00% 150.00% 100.00% 50.00% 0.00% -50.00% -100.00% -150.00% PolyOne S&P 500 Page 4
Slide 5: Four Pillar Strategy
Four Pillar Strategy The World’s Premier Provider of Specialized Polymer Materials, Services & Solutions Page 5
Slide 6: 2013 Portfolio Transformation Highlights
2013 Portfolio Transformation Highlights • Substantial organic mix improvement drives 29% increase in first quarter EPS – 14th consecutive quarter of double-digit EPS growth • Completed acquisition of Spartech • Announced the creation of a new Specialty segment – Designed Structures and Solutions •
Slide 7: 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 8: Mix Shift Highlights Specialty Transformation
Mix Shift Highlights Specialty Transformation Old 2015 PolyOne Transformation Target 100% % of Operating Income* 80% 60% 40% 65 – 60% 75% 20% 43% 45% 34% 0% 2% 2005 2008 2010 2012 2012PF** 2015 Specialty OI $5M $46M $87M $114M $150M Target JV's PP&S Distribution Specialty *Operating Income excludes
Slide 9: Proof of Performance & 2015 Goals
Proof of Performance & 2015 Goals 2007 Q1 2013 2015 Target 1) Operating Income % Specialty: Global Color, Additives & Inks 4.6% 11.7% 12 – 16% Global Specialty Engineered 1.3% 10.1% 12 – 16% Materials Designed Structures & Solutions -- 4.6% 8 – 10% Performance Products & 6.1% 8.1% 9 – 12% Solutions
Slide 10: Innovation Drives Earnings Growth
Innovation Drives Earnings Growth Research & Development Specialty Platform Specialty Platform Spending Vitality Index Progression* Gross Margin % $41.9 50.0% 27.8% $20.3 14.3% 19.5% ($ millions) 2006 2012 2006 Q1 2013 2006 Q1 2013 *Percentage of Specialty Platform revenue from products introduced i
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 Quarter Financial Highlights
First Quarter Financial Highlights • 14th consecutive quarter of double digit adjusted earnings per share growth • 29 percent increase in adjusted EPS 34 percent increase in Specialty operating income Growth from all regions Virtually all organic growth • Strengthened our financial position Pa
Slide 13: Debt Maturities & Liquidity Summary – 3/31/13
Debt Maturities & Liquidity Summary – 3/31/13 $800 Debt Maturities • Total Debt at 3/31/13 $1,056 As of March 31, 2013 ($ millions) Less: Cash 169 $700 Net Debt $887 $600 $600 $500 • Available Liquidity $400 Cash $169 $300 $360 ABL Availability 285 Total Liquidity $454 $200 $100 • Net Debt / EBITDA
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 840k shares in Q1 and technical • Specialty offering in Q1 2011 and 2013 capabilities is top • End market presence increased
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
Global Specialty Engineered Materials - OI % of sales 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% Global Color, Additives and Inks - OI % of sales 1.7% 4.6% 5.1% 5.5% 7.1% 8.0% Specialty platform OI - % of sales 1.5% 3.2% 4.3% 5.3% 8.4% 8.0% PP&S operating OI - % of sales 5.5% 6.1% 3.1% 5.0% 7.0% 7.2% Distributio
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