Avient Corporation (NYSE:AVNT) Q2 2020 Earnings Conference Call July 22, 2020 8:00 AM ET Company Participants Joe Di Salvo - Vice President, Treasurer and Investor Relations Bob Patterson - Chairman, President and Chief Executive Officer Brad Richardson - Executive Vice President and Chief Financial Officer Conference Call Participants Mike Harrison - Seaport Global Vincent Andrews - Morgan Stanley Mike Sison - Wells Fargo Frank Mitsch - Fermium Research Lawrence Alexander - Jefferies Colin Rusch - Oppenhei ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________ FORM 10-Q ________________________________________________ (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2020 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to . | --- | --- | |----------------------------------------- ...

PolyOne Corporation (POL) Second Quarter Performance Update Conference Call Summary Company Overview - **Company**: PolyOne Corporation (POL) - **Date of Call**: June 16, 2020 - **Participants**: - Joe Di Salvo - Vice President, Treasurer, and Investor Relations - Bob Patterson - Chairman, President and Chief Executive Officer - Brad Richardson - Executive Vice President, and Chief Financial Officer Core Industry Insights - **Industry Impact**: The COVID-19 pandemic has significantly affected demand across various sectors, particularly in automotive and consumer discretionary items, while healthcare and packaging have shown resilience and growth during this period [7][12][14]. Key Financial Performance Metrics - **Sales Decline**: - April sales were down 15% due to the pandemic, with an expected overall sales decline of 20% for the quarter [11][12]. - Automotive-related sales, while only 10% of total sales, accounted for nearly 40% of the second quarter sales decline [11]. - Specific segment declines: Color down 16.5%, Engineered Materials (EM) down 18%, and Distribution down 23% [23]. - **Adjusted EPS**: Expected to be approximately $0.36 compared to $0.48 in the same quarter last year; adjusted EPS could be $0.26 when accounting for additional shares and interest expenses [14][15]. - **Free Cash Flow**: Anticipated strong free cash flow generation of $65 million for the quarter, with an ending cash balance of $1.95 billion [15]. Operational Adjustments - **Facility Operations**: Most facilities deemed essential remained operational, with strict health protocols in place. Five facilities temporarily ceased operations due to local regulations [7][9]. - **Remote Work**: Associates who can work from home continue to do so, adapting well to remote operations [9]. Market Trends and Demand - **Healthcare and Packaging**: Strong demand in these sectors, with expected growth of 5% and 8% respectively for the quarter [12][49]. - **Regional Performance**: - Europe expected to see a 27% decline in sales, while the Americas down about 20%. - Asia, primarily China, expected to be up about 10% [14]. Clariant Acquisition Update - **Acquisition Status**: The acquisition of Clariant is expected to close on July 1, 2020, with all necessary regulatory approvals received [15][16]. - **Synergy Planning**: Contingency plans are in place to achieve synergies despite travel restrictions, with expectations to hit the ground running post-acquisition [25][26]. Risks and Concerns - **Customer Financial Health**: Some customers are in precarious financial positions due to the pandemic, leading to increased reserves for bad debts [42]. - **Potential for Second Lockdown**: Concerns about a resurgence of COVID-19 cases could impact operations and demand, particularly in China [45][48]. Conclusion - PolyOne Corporation is navigating the challenges posed by the COVID-19 pandemic with a focus on essential markets such as healthcare and packaging. The company is preparing for the upcoming Clariant acquisition while managing operational adjustments and financial performance amidst a volatile market environment [7][15][16].

Financial Data and Key Metrics Changes - The company reported adjusted EPS of $0.53, a 23% increase over the prior year first quarter and $0.05 better than expected [8][12] - GAAP earnings per share from continuing operations were $0.38, with special items resulting in a net after-tax charge of $8.6 million [12] - Sales declined 4% on a constant currency basis, primarily due to a decline in automotive demand [10][13] Business Line Data and Key Metrics Changes - The SEM segment grew operating income by 9% on slightly lower revenue, driven by strong performance in healthcare and consumer applications [13][14] - The Color, Additives, and Ink segment saw operating income grow 3% on 3% lower revenue, with healthcare positively impacting results [16] - The PolyOne Distribution segment delivered sales of $290 million, a 9% decline versus the prior year, but margins expanded to a record 6.7% [17] Market Data and Key Metrics Changes - Sales in Europe were down 7%, primarily due to weak demand in automotive applications and unfavorable foreign currencies [13] - Asia sales were down 6%, with foreign currencies negatively impacting sales by 3% [13] - North America sales were down 4%, related to weaker demand in automotive end markets and lower average selling prices [13] Company Strategy and Development Direction - The company is focused on essential supply chains during the COVID-19 pandemic, with a commitment to reduce discretionary spending and administrative costs [19][20] - The Clariant acquisition is expected to enhance the company's presence in high-growth regions and less cyclical end markets, with over 70% of Clariant's sales in packaging, consumer, and healthcare [22][24] - The company aims to become a truly global specialty organization, reducing exposure to cyclical end markets like automotive and construction [24][25] Management's Comments on Operating Environment and Future Outlook - Management expects the impact of COVID-19 on demand to be greater in the second quarter, particularly for transportation and consumer discretionary items [19] - The company plans to provide a mid-quarter update to offer more clarity on market conditions and their impact on financial performance [22] - Management remains optimistic about the recovery in China and its implications for the global economy [9][19] Other Important Information - The company ended the quarter with $1.28 billion in cash, exceeding total debt obligations of $1.2 billion [17] - The defined benefit plans in the U.S. are overfunded at 108%, positioning the company well to navigate challenges [18] Q&A Session Summary Question: What is the visibility on demand decline by geography? - Management noted that April orders are down about 15% year-over-year, primarily driven by declines in automotive demand and consumer discretionary items [30][31] Question: How is the debt market for financing the acquisition? - The debt markets have improved recently, and management is closely monitoring the situation for potential issuance [32][33] Question: How does the current downturn compare to the last one? - The current portfolio is less exposed to building and construction and automotive markets, with only about 18% of sales affected compared to over half in the last downturn [35][36] Question: What is the status of the Clariant transaction? - The earliest closing date remains June 2, pending regulatory approvals in Morocco and Russia [42][43] Question: How are healthcare sales performing? - Healthcare sales were flat in the first quarter, with certain sub-segments up by 50%, but offset by declines in elective surgeries and other devices [49][50] Question: What are the trends in raw materials? - Key raw materials like Kevlar and carbon are up year-over-year, while Nylon 6 and 66 are down slightly [68][69] Question: What actions can be taken to offset reduced demand? - The company can flex its workforce and reduce administrative costs, with significant savings expected from travel reductions [70][71]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________ FORM 10-Q ________________________________________________ (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2020 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to . | --- | --- | |---------------------------------------- ...

United States Securities and Exchange Commission Washington, DC 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 1-16091 PolyOne Corporation (Exact name of registrant as specified in its charter) Ohio 34-1730488 (State or other jurisdiction (I.R.S. Employer Identi ...

PolyOne Corporation (POL) Q4 2019 Earnings Conference Call January 28, 2020 8:00 AM ET Company Participants Joe Di Salvo - VP, Treasurer & IR Bob Patterson - Chairman, President & CEO Brad Richardson - EVP & CFO Conference Call Participants Frank Mitsch - Fermium Research Mike Sison - Wells Fargo Mike Harrison - Seaport Global Securities Jim Sheehan - SunTrust Robinson Humphrey Colin Rusch - Oppenheimer Ben Kallo - Baird Don Campbell - Goldman Sachs Dan Rizzo - Jefferies Rosemarie Morbelli - G. Research Ope ...

Acquisition Highlights - The acquisition of Clariant Masterbatch is expected to add $085 to pro forma adjusted EPS[13] - The net purchase price for Clariant Color & Additive Masterbatch Business is $145 billion[61] - Equity issuance of $400 million to $500 million is planned to finance the acquisition[61] Financial Projections & Synergies - 2019E Adjusted EBITDA for PolyOne is projected at $310 million with a 108% margin[56] - 2019E Adjusted EBITDA for Clariant Color & Additive Masterbatch Business is projected at $130 million with an 113% margin[56] - Synergies of $60 million are expected from the acquisition of Clariant Color & Additive Masterbatch Business[24, 56, 61, 65] - The combined company is projected to have $4010 billion in total sales and $500 million in adjusted EBITDA with a 125% margin in 2019E[56] - 2019E Free Cash Flow is projected at $250 million for the new PolyOne[56] Strategic Transformation - The company is undergoing a landmark portfolio transformation with > 85% of Adjusted EBITDA from specialty solutions[13, 76] - The company expects $600 million of after-tax proceeds from the divestiture of Performance Products & Solutions to fund ongoing specialty transformation[23] Capital Structure & Leverage - Target net leverage at close is expected to be below 35x, or 31x synergized, with the intention to de-lever below 30x within 2 years[61, 73] - New equity of $450 million is planned as part of the financing structure[68, 70]

PolyOne Corporation (POL) Q3 2019 Earnings Conference Call October 22, 2019 8:00 AM ET Company Participants Joe Di Salvo – Vice President, Treasurer and Investor Relations Bob Patterson – Chairman, President and Chief Executive Officer Brad Richardson – Executive Vice President, Chief Financial Officer Conference Call Participants Mike Harrison – Seaport Global Mike Sison – Wells Fargo Colin Rusch – Oppenheimer Ben Kallo – Baird Jim Sheehan – SunTrust Dmitry Silversteyn – Buckingham Research Don Campbell – ...