Avient Corporation · NYSE:AVNT
Avient — PolyOne — Credit Suisse Boston Basic Materials Conference 2013
18 slides from Avient's conference presentation, Jun 26, 2013
Slide 1: PolyOne Investor Presentation
PolyOne Investor Presentation Credit Suisse Boston Basic Materials Conference June 26, 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 – Since 2006
Strategy and Execution Drive Results – Since 2006: 350.00% • 14 consecutive quarters of 300.00% All time closing high of double digit EPS growth $26.63 May 28, 2013 250.00% • 380 basis point increase in return on sales 200.00% 150.00% • 300% share price expansion 100.00% 50.00% • 300% increase in to
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: 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 12: 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 13: 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 14: 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 15: 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 16: 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 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 by Segment
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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