Performance Products and Solutions
Robert M. Rosenau
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At a Glance
Performance Products and Solutions
2011 Revenue: $0.9 Billion
Solutions
United
States
81%
Canada
15%
Asia
2%
Europe
2%
2011 Revenue by Industry Segment
Textiles
Appliance
2%
4%
Transportation
8%
Industrial
20%
Building &
Construction
30%
Packaging
9%
Wire & Cable
17%
Consumer
4%
Electrical &
Electronics
2%
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14.0%
Operating Income % and Revenue
$1,200
9-12%
12.0%
$1,000
10.0%
8.0%
$800
6.0%
4.0%
$600
2.0%
0.0%
$400
2006 2007 2008 2009 2010 2011 2015
OI % of Sales
Sales
Target
Sales ($ millions)
HealthCare
2%
Operating Income % of Sales
Misc.
2%
Expanding Profits
Market Dynamics
Performance Products and Solutions
Housing Starts
(in million units)
2.5
2.0
50 year average
• Trend toward more
affordable housing
favors our product
1.5
1.0
0.5
0.0
'87 '89 '91 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12
Source: Historical Data from the US Census Bureau,
2012 estimate is a PolyOne projection.
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• Ultimate housing
recovery presents
substantial upside to
already recordsetting results
Value Proposition and Transformation Highlights
Performance Products and Solutions
Value Proposition
• Premier provider of specialized vinyl and supply chain solutions, leading
the industry in innovation and service
Transformation Highlights
• Management upgrades ensure that each PP&S business
maximizes performance
• Asset realignment and Lean Six Sigma reduce costs
• Strengthened relationship with winning customers
• Increased differentiation in all business units
> $12B Addressable Market
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Key Differentiators
Performance Products and Solutions
• Providing application design, material design
and / or process design assistance not available
from competitors
• Capability to improve joint value streams
• We are the best innovator in our space
• Expanding customers’ opportunities
by providing innovative materials
and marketing ideas
• We provide world-class customer
service and delivery performance
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Areas of Focus – Operational Excellence
Performance Products and Solutions
WC % of Sales
• Best-in-class working
capital management and
delivery performance
• Improved raw material
positions, sourcing savings
• PolyOne pilot site for many
LSS and manufacturing
excellence programs
13.7% 14.3%
9.9%
2006
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2007
2008
2009
6.2%
5.4%
2010
2011
On-Time Delivery*
94.2%
93.4% 93.4% 94.0%
2008
2009
92.0%
89.1%
2006
*As measured to customer request date
15.5%
2007
2010
2011
Key Innovations
Performance Products and Solutions
• GeonTM HC for Healthcare
Applications: Medical device housings, specialty tubing
Customer benefits: Withstand aggressive antiseptics
• reFlexTM Bioplasticizers
Applications: Wide variety of flexible vinyl-based products
Customer benefits: Lower carbon footprint,
improved productivity
• GeonTM SF Super Flow
Applications: Large appliance parts, molded siding panels
Customer benefits: Flame retardancy, detergent resistance
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Critical Imperatives and 2015 Goal
Performance Products and Solutions
Critical Imperatives
• Accelerate innovation - grow in new applications not
historically served with vinyl
• Drive continuous improvement in manufacturing and
working capital efficiencies
• Selectively leverage construction recovery
2015 Goal
• 9 - 12% return on sales
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