https://www.avient.com/sites/default/files/2024-10/Avient Announces Third Quarter 2024 Results.pdf
The Avient team delivered another strong quarter, ahead of our expectations, driven by organic revenue growth across all regions and most end markets,” said Dr.
The US and Canada region grew organic revenue by 9%, led by continued demand for our composite materials for the building and construction market.
The EMEA region's organic revenues grew 5%, benefiting from share gains in packaging and continued strong demand for defense applications." 2024 Outlook "The year has continued to play out as we expected, and as we look at the fourth quarter, we are in a position to narrow our full-year guidance," said Jamie Beggs, Senior Vice President and Chief Financial Officer of Avient Corporation.
https://www.avient.com/sites/default/files/Avient Climate Change Scenario Analysis Summary 2022.pdf
· Continued R&D investment in current initiatives is expected · Steep increases in advanced economies' carbon prices · Considerable increases in emerging economies' carbon prices · Some change in carbon prices · Declining fuel prices · Regional variability in fuel prices, though slight net increase · Rising fuel prices 1 International Energy Agency World Energy Outlook 2021 The following summarizes Avient's climate-related risks and opportunities analyzed across multiple scenarios, in alignment with the Task Force on Climate-Related Financial Disclosures (TCFD) framework.
CLIMATE-RELATED SCENARIOS ANALYZED Global operations through 2050 PARAMETERS & ASSUMPTIONS EXCEED 2.5°C EXCEED 2.0°C RETURN BELOW 1.5°C IMPACT DRIVER & TIME HORIZON NET ZERO FUTURE PLEDGING PROGRESS STEADFAST POLICY Policy & Legal Risk M L Carbon pricing exposure in USA, China, Germany and Spain Fines and/or compliance measures: · Clean electrification of operations; · Emissions intensive equipment phase-out; · Circular economic and materials efficiency strategies; · Net-zero carbon building standards; · Mandatory energy management systems and audits Carbon pricing exposure in USA, China, Germany, Spain, and Saudi Arabia Increased fines and compliance measures related to: · Phase-outs aligned with Nationaly Determined Contributions (NDC); · Renewable energy sourcing; · Material efficiency standards (minimum recycled content for packaging, and enhanced vechicle air quality) Some regional carbon pricing exposure in China, Germany and Spain Technology Risk S M Capital expenditures to subsitute emissions intensive technologies Declining price point competitiveness caused by decarbonization pass through costs R&D costs to transition to design and deploy lower-emissions technologies Slower substitution of materials with lower- emission options Market Risk S M Declining redundant supply and sourcing more sustainably causes raw material costs to rise Customers demand to lower their scope 3 emissions from purchased goods and services across all markets Increasing competition from existing and unforeseen polymer and non-polymer- based products that reduce further impact on climate Customer behaviors from advanced economies demand lower carbon products Rising degree of uncertainty in raw material prices Slow customer behavior changes in some advanced economies High degree of uncertainty in energy market signals Reputation Risk L Chemical sector or certain petrochemical materials (i.e., plastics) stigmatized Rising expectations for rapid innovation and displacement of older, heavily carbon- intensive designs and manufacturing processes NDC countries expected to innovate and seek rapid minimization of customers' scope 3 emissions Increased concern from stakeholders for not addressing climate change globally or for the chemicals sector Acute & Chronic Risk L Possible direct damage to fixed assets and logistics disruptions in both our value chain and operations More frequent and intense weather events and changing preciptation patterns are likely to damage manufaturing faciliites, disrupt logistics and sourcing activities, and negatively affect employee health and communities where we operate More frequent and intense weather events and changing preciptation patterns are likely to affect the performance of grids and thermal plants while pushing up demand for cooling, damage fixed assets, disrupt logistics and sourcing activities, and negatively affect employee health and communities where we operate IMPACT DRIVER & TIME HORIZON NET ZERO FUTURE PLEDGING PROGRESS STEADFAST POLICY Resource Efficiency Opportunity S M L More efficient production and distribution processes, reduced natural resource usage, continued use of recycling, and inclusion of recycled materials in our products such as reSoundTM R, ColorMatrix™ Capture™ Oxygen Scavenger, among others will contribute to increasing product revenues and reduced operating costs Resource efficiency efforts supported by capital allocation in NDC countries is more likely and may accelerate a path toward maximizing ROI and reducing operating costs Less regulatory and pressure to incentivize may cause gains from efforts to lag Energy Source Opportunity M L Use of greater external financing options, such as operating lease arrangements or energy performance shared savings contracts, to source lower emission-energy and new technologies, such as carbon capture, utilization & storage (CCUS), in our operations may reduce operating costs and maximize returns on investment Use of lower emission-sources of energy in operations will lower operating costs and contribute toward reductions of our scope 1 and 2 emissions and product carbon intensities Use of renewable energy, increased efficiency, and electrification initiatives will lower operating costs and contribute toward reductions of our scope 1 and 2 emissions and product carbon intensities.
https://www.avient.com/sites/default/files/2021-09/avnt-seaport-conference-presentation.pdf
Canada and China Regional Strengths • Solutions with Avient’s engineered materials customers • Avient’s distribution channels Segment Cross-selling COMPLEMENTARY TECHNOLOGIES AND CUSTOMERS DRIVE REVENUE SYNERGIES Revenue synergy opportunities in excess of $50MM by 2025 The complementary aspects of our combined businesses are unquestionable.
Whether an additional line at an existing manufacturing plant, or a new facility in a growing region, we ramp-up quickly and cost-efficiently. 29 Capex / Revenue 2021E (%) AVIENT IS ASSET LIGHT Avient Specialty Formulators Other Chemical/Specialty Companies 2 2 2 2 3 3 3 4 3 4 4 5 5 5 5 5 6 7 27 A vi e nt A vi e nt ( E xc l.
APPENDIX Performance Additives 15% Pigments 15% TiO2 12% Dyestuffs 4%Polyethylene 10% Nylon 5% Polypropylene 4% Other Raw Materials 29% Styrenic Block Copolymer 6% ~1/3 hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials 34 • In Q2 2021, several raw material markets experienced significant price inflation and tight inventory o Average cost of hydrocarbon based materials was up 45% year-over-year and 20% sequentially o Average cost of non-hydrocarbon based materials was up 10% year-over-year and 8% sequentially • Additionally, we experienced other supply chain challenges during Q2 related to raw material spot purchases, freight constraints and productivity loss as a result of these shortages Annual Purchases RAW MATERIAL AND SUPPLY CHAIN UPDATE Based on 2020 pro forma purchases, excludes Distribution business SEGMENT DATA U.S. & Canada 50% EMEA 26% Asia 16% Latin America 8% 2021 YTD SEGMENT, END MARKET AND GEOGRAPHY 36 GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 23% Packaging 20% Industrial 16% Building and Construction 9% Telecommunications 4% Energy 2% END MARKET REVENUE (1) Total company sales and EBITDA of $2,398M and $320M, respectively, include intercompany sales eliminations and corporate costs All charts reflect YTD financials through June 30 $1,234M $228M $457M $87M $767M $48M Sales EBITDA Distribution Specialty Engineered Materials Color Additives and Inks $320M$2,398M (1) Transportation 12% Healthcare 14% Packaging 34% Consumer 21% Healthcare 7% Industrial 16% Building & Construction 10% Transportation 9% Energy 2% Telecommunications 1% C O L O R , A D D I T I V E S & I N K S 2021 YTD REVENUE | $1 .2 BILL ION US & Canada 31% EMEA 42% Asia 21% Latin America 6% END MARKET REGION 37 All charts reflect 2021 YTD financials through June 30 S P E C I A LT Y E N G I N E E R E D M AT E R I A L S Consumer 28% Healthcare 10% Packaging 6% Telecommunications 16% Industrial 12% Transportation 11% Building & Construction 10% Energy 7% 2021 YTD REVENUE | $457 MILLION END MARKET US & Canada 54% EMEA 26% Asia 20% REGION 38 All charts reflect 2021 YTD financials through June 30 DI S TR IBU T I ON Healthcare 27% Consumer 22% Packaging 5% Industrial 20% Transportation 16% Building and Construction 8% Energy 1% Telecommunications 1% US & Canada 81% Asia 4% Latin America 15% END MARKET REGION K E Y S U P P L I ER S 2021 YTD REVENUE | $767 MILLION 39 All charts reflect 2021 YTD financials through June 30 TOTA L C O M PA N Y R E G I O N A L S A L E S BY END MARKET Packaging 30% Consumer 27%Healthcare 11% Industrial 15% Building & Construction 5% Telecommunications 2% Energy 2% Asia (16% of sales) Transportation 8% Packaging 32% Consumer 13% Healthcare 5% Industrial 18% Building & Construction 11% Telecommunications 5% Energy 4% EMEA (26% of sales) Transportation 12% 40 Consumer 25% Healthcare 19% Packaging 11% Industrial 16% Building & Construction 10% Telecommunications 4% Energy 2% US & Canada (50% of sales) Transportation 13% Packaging 40% Consumer 33% Healthcare 4% Industrial 10% Building & Construction 5% Telecommunications 1% LATAM (8% of sales) Transportation 7% All charts reflect 2021 YTD financials through June 30 Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Three Months Ended June 30, 2021 Reconciliation to Condensed Consolidated Statements of Income GAAP Results Special Items Adjusted Results Operating income $ 108.1 $ 14.2 $ 122.3 Income from continuing operations before income taxes $ 89.8 $ 14.2 $ 104.0 Income tax expense - GAAP (20.4) — (20.4) Income tax impact of special items — (3.4) (3.4) Tax adjustments — 0.9 0.9 Net income attributable to noncontrolling interests (0.6) — (0.6) Net income from continuing operations attributable to Avient shareholders $ 68.8 $ 11.7 $ 80.5 Net income / EPS $ 0.74 $ 0.13 $ 0.87 Weighted-average diluted shares 92.4 92.4 92.4 Three Months Ended September 30, 2020 Reconciliation to Condensed Consolidated Statements of Income GAAP Results Special Items Adjusted Results Operating income $ 33.5 $ 40.4 $ 73.9 Income from continuing operations before income taxes $ 5.3 $ 50.0 $ 55.3 Income tax expense - GAAP (2.7) — (2.7) Income tax impact of special items — (12.7) (12.7) Tax adjustments — 3.0 3.0 Net income attributable to noncontrolling interests (0.9) — (0.9) Net income from continuing operations attributable to Avient shareholders $ 1.7 $ 40.3 $ 42.0 Net income / EPS $ 0.02 $ 0.44 $ 0.46 Weighted-average diluted shares 91.9 91.9 91.9 Three Months Ended Year Ended December 31, Reconciliation to Pro Forma Adjusted EBITDA June 30, 2021 March 31, 2021 June 30, 2020 2020 2019 Net income from continuing operations – GAAP $ 69.4 $ 79.7 $ 23.4 $ 133.8 $ 75.7 Income tax expense 20.4 22.9 7.9 5.2 33.7 Interest expense 19.5 19.3 16.2 74.6 59.5 Depreciation and amortization from continuing operations 33.8 37.1 20.9 115.0 78.1 EBITDA $ 143.1 $ 159.0 $ 68.4 $ 328.6 $ 247.0 Special items, before tax 14.2 2.4 2.4 66.2 61.7 Interest expense included in special items — — (0.5) (10.1) — Depreciation and amortization included in special items 1.4 (0.5) (1.2) (3.2) — Adjusted EBITDA $ 158.7 $ 160.9 $ 69.1 $ 381.6 $ 308.7 Clariant MB pro forma adjustments(1) — — 37.0 75.1 133.2 Pro forma adjusted EBITDA $ 158.7 $ 160.9 $ 106.1 $ 456.7 $ 441.9 (1) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition 1 Reconciliation of EBITDA by Segment Three Months Ended June 30, Six Months Ended June 30, Year Ended December 31, 2021 2020 2021 2020 2019 2018 Sales: Color, Additives and Inks $ 624.4 $ 226.8 $ 1,233.7 $ 483.3 $ 1,502.9 $ 1,003.8 Specialty Engineered Materials 240.6 158.8 457.1 344.1 708.8 745.7 Distribution 404.4 238.8 767.1 528.3 1,110.3 1,192.2 Corporate and eliminations (34.2) (15.3) (60.4) (35.1) (79.9) (79.0) Sales $ 1,235.2 $ 609.1 $ 2,397.5 $ 1,320.6 $ 3,242.1 $ 2,862.7 Operating income: Color, Additives and Inks $ 86.3 $ 32.3 $ 175.1 $ 180.8 $ 147.4 $ 158.5 Specialty Engineered Materials 37.3 17.0 71.5 94.4 83.7 72.3 Distribution 23.7 14.6 47.7 69.5 75.4 71.5 Corporate and eliminations (39.2) (25.9) (65.8) (155.4) (149.7) (123.7) Operating income $ 108.1 $ 38.0 $ 228.5 $ 189.3 $ 156.8 $ 178.6 Items below OI in Corporate: Other income, net $ 1.2 $ 9.5 $ 2.7 $ 24.3 $ 12.1 $ (12.9) Depreciation & amortization: Color, Additives and Inks $ 25.3 $ 10.6 $ 52.6 $ 75.1 $ 42.7 $ 44.3 Specialty Engineered Materials 8.1 7.6 15.9 30.0 29.5 23.2 Distribution 0.2 0.1 0.4 0.7 0.5 0.7 Corporate and eliminations 0.2 2.6 2.0 9.2 5.4 4.4 Depreciation & Amortization $ 33.8 $ 20.9 $ 70.9 $ 115.0 $ 78.1 $ 72.6 EBITDA: Color, Additives and Inks $ 111.6 $ 42.9 $ 227.7 $ 255.9 $ 190.1 $ 202.8 Specialty Engineered Materials 45.4 24.6 87.4 124.4 113.2 95.5 Distribution 23.9 14.7 48.1 70.2 75.9 72.2 Corporate and eliminations (39.0) (23.3) (63.8) (146.2) (144.3) (119.3) EBITDA $ 143.1 $ 68.4 $ 302.1 $ 328.6 $ 247.0 $ 238.3 EBITDA as a % of Sales: Color, Additives and Inks 17.9 % 18.9 % 18.5 % 17.0 % 18.9 % 19.4 % Specialty Engineered Materials 18.9 % 15.5 % 19.1 % 17.6 % 15.2 % 14.8 % Distribution 5.9 % 6.2 % 6.3 % 6.3 % 6.4 % 5.7 % 2 Reconciliation of Pro Forma EBITDA - Color, Additives and Inks Three Months Ended June 30, Six Months Ended June 30, Year Ended December 31, 2021 2020 2021 2020 2019 2018 Sales: Color, Additives and Inks $ 624.4 $ 226.8 $ 1,233.7 $ 1,502.9 $ 1,003.8 $ 1,046.5 Clariant MB pro forma adjustments(1) — 261.1 — 540.4 1,118.6 1,209.8 Pro forma sales $ 624.4 $ 487.9 $ 1,233.7 $ 2,043.3 $ 2,122.4 $ 2,256.3 Operating income: Color, Additives and Inks $ 86.3 $ 32.3 $ 175.1 $ 180.8 $ 147.4 $ 158.5 Clariant MB pro forma adjustments(1) — 22.0 — 45.0 72.9 80.3 Pro forma operating income $ 86.3 $ 54.3 $ 175.1 $ 225.8 $ 220.3 $ 238.8 Depreciation & amortization: Color, Additives and Inks $ 25.3 $ 10.6 $ 52.6 $ 75.1 $ 42.7 $ 44.3 Clariant MB pro forma adjustments(1) — 15.0 — 30.1 60.3 61.2 Pro forma depreciation & amortization $ 25.3 $ 25.6 $ 52.6 $ 105.2 $ 103.0 $ 105.5 EBITDA Color, Additives and Inks $ 111.6 $ 42.9 $ 227.7 $ 255.9 $ 190.1 $ 202.8 Clariant MB pro forma adjustments(1) — 37.0 — 75.1 133.2 141.5 Pro forma EBITDA $ 111.6 $ 79.9 $ 227.7 $ 331.0 $ 323.3 $ 344.3 Pro forma EBITDA as a % of Sales 17.9 % 16.4 % 18.5 % 16.2 % 15.2 % 15.3 % (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition Three Months Ended June 30, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient Sales $ 609.1 $ — $ 609.1 $ 261.1 $ 870.2 Operating income $ 38.0 $ 9.0 $ 47.0 $ 22.0 $ 69.0 Interest expense, net (16.2) — (16.2) (5.3) (21.5) Other income, net 9.5 (6.6) 2.9 — 2.9 Income taxes (7.9) 0.2 (7.7) (3.8) (11.5) Net income attributable to noncontrolling interests (0.4) — (0.4) — (0.4) Net income from continuing operations attributable to Avient shareholders $ 23.0 $ 2.6 $ 25.6 $ 12.9 $ 38.5 Weighted average diluted shares 91.8 Pro forma adjusted EPS $ 0.42 (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 3 Year Ended December 31, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient Sales $ 3,242.1 $ — $ 3,242.1 $ 540.4 $ 3,782.5 Operating income $ 189.3 $ 73.7 $ 263.0 $ 45.0 $ 308.0 Interest expense, net (74.6) 10.1 (64.5) (18.1) (82.6) Other income, net 24.3 (17.6) 6.7 — 6.7 Income taxes (5.2) (41.4) (46.6) (6.2) (52.8) Net income attributable to noncontrolling interests (1.8) — (1.8) — (1.8) Net income from continuing operations attributable to Avient shareholders $ 132.0 $ 24.8 $ 156.8 $ 20.7 $ 177.5 Weighted average diluted shares 90.6 Impact to diluted shares from January 2020 equity offering 1.5 Pro forma weighted average diluted shares 92.1 Pro forma adjusted EPS $ 1.93 (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition Year Ended December 31, 2019 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient Sales $ 2,862.7 $ — $ 2,862.7 $ 1,118.6 $ 3,981.3 Operating income $ 156.8 $ 71.7 $ 228.5 $ 72.9 $ 301.4 Interest expense, net (59.5) — (59.5) (33.4) (92.9) Other income, net 12.1 (10.0) 2.1 — 2.1 Income taxes (33.7) (5.9) (39.6) (9.1) (48.7) Net income attributable to noncontrolling interests (0.2) — (0.2) — (0.2) Net income from continuing operations attributable to Avient shareholders $ 75.5 $ 55.8 $ 131.3 $ 30.4 $ 161.7 Weighted average diluted shares 77.7 Impact to diluted shares from January 2020 equity offering 15.3 Pro forma weighted average diluted shares 93.0 Pro forma adjusted EPS $ 1.74 (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 4 AVNT Seaport Conference Presentation.pdf AVNT Q2 2021 Earnings Presentation - Website.pdf AVNT Q2 2021 Earnings Presentation - Website.pdf Final - 7.19 1158am Q2 21 IR Deck Version v2
https://www.avient.com/sites/default/files/2021-11/avnt-november-investor-meetings.pdf
Canada and China Regional Strengths • Solutions with Avient’s engineered materials customers • Avient’s distribution channels Segment Cross-selling COMPLEMENTARY TECHNOLOGIES AND CUSTOMERS DRIVE REVENUE SYNERGIES Revenue synergy opportunities in excess of $50M by 2025 The complementary aspects of our combined businesses are unquestionable.
Whether an additional line at an existing manufacturing plant, or a new facility in a growing region, we ramp-up quickly and cost-efficiently. 31 Capex / Revenue 2021E (%) AVIENT IS ASSET LIGHT Avient Specialty Formulators Other Chemical/Specialty Companies 2 3 1 2 3 3 3 4 3 3 4 5 5 5 6 9 A vi e nt A vi e nt ( E xc l.
APPENDIX Performance Additives 15% Pigments 15% TiO2 12% Dyestuffs 4%Polyethylene 10% Nylon 5% Polypropylene 4% Other Raw Materials 29% Styrenic Block Copolymer 6% ~1/3 hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials 36 • Significant raw material price inflation and tight inventory continued in Q3 2021 o Average cost of hydrocarbon based materials was up 65% year-over-year and 10% sequentially o Average cost of non-hydrocarbon based materials was up 20% year-over-year and 3% sequentially • Additionally, we continued to experience other supply chain challenges during Q3 related to raw material spot purchases, freight constraints and productivity loss as a result of these shortages Annual Purchases RAW MATERIAL AND SUPPLY CHAIN UPDATE Based on 2020 pro forma purchases, excludes Distribution business SEGMENT DATA U.S. & Canada 51% EMEA 25% Asia 16% Latin America 8% 2021 YTD SEGMENT, END MARKET AND GEOGRAPHY 38 GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 23% Packaging 19% Industrial 16% Building and Construction 10% Telecommunications 4% Energy 2% END MARKET REVENUE (1) Total company sales and EBITDA of $3,617M and $455M, respectively, include intercompany sales eliminations and corporate costs All charts reflect YTD financials through September 30 $1,820M $321M $691M $127M $1,206M $72M Sales Adjusted EBITDA Distribution Specialty Engineered Materials Color Additives and Inks $455M$3,617M (1) Transportation 12% Healthcare 14% Packaging 34% Consumer 21% Healthcare 7% Industrial 16% Building & Construction 10% Transportation 9% Energy 2% Telecommunications 1% C O L O R , A D D I T I V E S & I N K S 2021 YTD REVENUE | $1 .8 BILL ION US & Canada 31% EMEA 42% Asia 21% Latin America 6% END MARKET REGION 39 All charts reflect 2021 YTD financials through September 30 S P E C I A LT Y E N G I N E E R E D M AT E R I A L S Consumer 28% Healthcare 10% Packaging 6% Telecommunications 16% Transportation 12% Industrial 11% Building & Construction 10% Energy 7% 2021 YTD REVENUE | $691 MILLION END MARKET US & Canada 55% EMEA 25% Asia 20% REGION 40 All charts reflect 2021 YTD financials through September 30 DI S TR IBU T I ON Healthcare 26% Consumer 22% Packaging 6% Industrial 20% Transportation 16% Building and Construction 8% Energy 1% Telecommunications 1% US & Canada 81% Asia 4% Latin America 15% END MARKET REGION K E Y S U P P L I ER S 2021 YTD REVENUE | $1 .2 BILL ION 41 All charts reflect 2021 YTD financials through September 30 TOTA L C O M PA N Y R E G I O N A L S A L E S BY END MARKET Packaging 30% Consumer 27% Healthcare 12% Industrial 14% Building & Construction 5% Telecommunications 2% Energy 2% Asia (16% of sales) Transportation 8% Packaging 31% Consumer 14% Healthcare 5% Industrial 17% Building & Construction 12% Telecommunications 5% Energy 4% EMEA (25% of sales) Transportation 12% 42 Consumer 25% Healthcare 19% Packaging 10% Industrial 17% Building & Construction 10% Telecommunications 4% Energy 2% US & Canada (51% of sales) Transportation 13% Packaging 42% Consumer 33% Healthcare 3% Industrial 10% Building & Construction 5% Telecommunications 1% LATAM (8% of sales) Transportation 6% All charts reflect 2021 YTD financials through September 30 Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Three Months Ended September 30, 2021 Reconciliation to Condensed Consolidated Statements of Income GAAP Results Special Items Adjusted Results Operating income $ 78.7 $ 20.0 $ 98.7 Income from continuing operations before income taxes $ 61.1 $ 19.9 $ 81.0 Income tax expense - GAAP (8.5) — (8.5) Income tax impact of special items — (4.6) (4.6) Tax adjustments — (3.6) (3.6) Net income attributable to noncontrolling interests 0.3 — 0.3 Net income from continuing operations attributable to Avient shareholders $ 52.9 $ 11.7 $ 64.6 Net income / EPS $ 0.57 $ 0.13 $ 0.70 Weighted-average diluted shares 92.2 92.2 92.2 Three Months Ended September 30, 2020 Reconciliation to Condensed Consolidated Statements of Income GAAP Results Special Items Adjusted Results Operating income $ 33.5 $ 40.4 $ 73.9 Income from continuing operations before income taxes $ 5.3 $ 50.0 $ 55.3 Income tax expense - GAAP (2.7) — (2.7) Income tax impact of special items — (12.7) (12.7) Tax adjustments — 3.0 3.0 Net income attributable to noncontrolling interests (0.9) — (0.9) Net income from continuing operations attributable to Avient shareholders $ 1.7 $ 40.3 $ 42.0 Net income / EPS $ 0.02 $ 0.44 $ 0.46 Weighted-average diluted shares 91.9 91.9 91.9 1 Three Months Ended September 30, Three Months Ended Nine Months Ended Year Ended December 31, Reconciliation to Pro Forma Adjusted EBITDA 2021 2020 June 30, 2021 September 30, 2021 2020 2019 2018 Net income from continuing operations – GAAP $ 52.6 $ 2.6 $ 69.4 $ 201.7 $ 133.8 $ 75.7 $ 87.4 Income tax expense 8.5 2.7 20.4 51.8 5.2 33.7 14.4 Interest expense 19.0 29.7 19.5 57.8 74.6 59.5 62.8 Debt extinguishment cost — — — — — — 1.1 Depreciation and amortization from continuing operations 36.8 36.5 33.8 107.7 115.0 78.1 72.6 EBITDA $ 116.9 71.5 $ 143.1 $ 419.0 $ 328.6 $ 247.0 $ 238.3 Special items, before tax 19.9 50.0 14.2 36.5 66.2 61.7 59.5 Interest expense included in special items — (9.6) — — (10.1) — — Depreciation and amortization included in special items (0.9) (1.3) 1.4 (0.1) (3.2) — (3.0) Adjusted EBITDA $ 135.9 $ 110.6 $ 158.7 $ 455.4 $ 381.6 $ 308.7 $ 294.8 Clariant MB pro forma adjustments(1) — — — — 75.1 133.2 141.5 Pro forma adjusted EBITDA $ 135.9 $ 110.6 $ 158.7 $ 455.4 $ 456.7 $ 441.9 $ 436.3 (1) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition 2 Reconciliation of EBITDA by Segment Three Months Ended September 30, Nine Months Ended September 30, Year Ended December 31, 2021 2020 2021 2020 2019 2018 Sales: Color, Additives and Inks $ 586.6 $ 493.8 $ 1,820.3 $ 1,502.9 $ 1,003.8 $ 1,046.5 Specialty Engineered Materials 233.6 174.1 690.7 708.8 745.7 645.8 Distribution 438.8 276.9 1,205.9 1,110.3 1,192.2 1,265.4 Corporate and eliminations (39.2) (20.3) (99.6) (79.9) (79.0) (76.7) Sales $ 1,219.8 $ 924.5 $ 3,617.3 $ 3,242.1 $ 2,862.7 $ 2,881.0 Operating income: Color, Additives and Inks $ 66.8 $ 50.5 $ 241.9 $ 180.8 $ 147.4 $ 158.5 Specialty Engineered Materials 31.7 24.7 103.2 94.4 83.7 72.3 Distribution 23.8 17.5 71.5 69.5 75.4 71.5 Corporate and eliminations (43.6) (59.2) (109.4) (155.4) (149.7) (123.7) Operating income $ 78.7 $ 33.5 $ 307.2 $ 189.3 $ 156.8 $ 178.6 Items below OI in Corporate: Other income, net $ 1.4 $ 1.5 $ 4.1 $ 24.3 $ 12.1 $ (12.9) Depreciation & amortization: Color, Additives and Inks $ 26.6 $ 26.3 $ 79.2 $ 75.1 $ 42.7 $ 44.3 Specialty Engineered Materials 7.9 7.5 23.8 30.0 29.5 23.2 Distribution 0.2 0.2 0.6 0.7 0.5 0.7 Corporate and eliminations 2.1 2.5 4.1 9.2 5.4 4.4 Depreciation & Amortization $ 36.8 $ 36.5 $ 107.7 $ 115.0 $ 78.1 $ 72.6 EBITDA: Color, Additives and Inks $ 93.4 $ 76.8 $ 321.1 $ 255.9 $ 190.1 $ 202.8 Specialty Engineered Materials 39.6 32.2 127.0 124.4 113.2 95.5 Distribution 24.0 17.7 72.1 70.2 75.9 72.2 Corporate and eliminations (41.5) (56.7) (105.3) (146.2) (144.3) (119.3) EBITDA $ 116.9 $ 71.5 $ 419.0 $ 328.6 $ 247.0 $ 238.3 EBITDA as a % of Sales: Color, Additives and Inks 15.9 % 15.6 % 17.6 % 17.0 % 18.9 % 19.4 % Specialty Engineered Materials 17.0 % 18.5 % 18.4 % 17.6 % 15.2 % 14.8 % Distribution 5.5 % 6.4 % 6.0 % 6.3 % 6.4 % 5.7 % 3 Reconciliation of Pro Forma EBITDA - Color, Additives and Inks Year Ended December 31, 2020 2019 2018 Sales: Color, Additives and Inks $ 1,502.9 $ 1,003.8 $ 1,046.5 Clariant MB pro forma adjustments(1) 540.4 1,118.6 1,209.8 Pro forma sales $ 2,043.3 $ 2,122.4 $ 2,256.3 Operating income: Color, Additives and Inks $ 180.8 $ 147.4 $ 158.5 Clariant MB pro forma adjustments(1) 45.0 72.9 80.3 Pro forma operating income $ 225.8 $ 220.3 $ 238.8 Depreciation & amortization: Color, Additives and Inks $ 75.1 $ 42.7 $ 44.3 Clariant MB pro forma adjustments(1) 30.1 60.3 61.2 Pro forma depreciation & amortization $ 105.2 $ 103.0 $ 105.5 EBITDA Color, Additives and Inks $ 255.9 $ 190.1 $ 202.8 Clariant MB pro forma adjustments(1) 75.1 133.2 141.5 Pro forma EBITDA $ 331.0 $ 323.3 $ 344.3 Pro forma EBITDA as a % of Sales 16.2 % 15.2 % 15.3 % (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 4 Year Ended December 31, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient Sales $ 3,242.1 $ — $ 3,242.1 $ 540.4 $ 3,782.5 Operating income $ 189.3 $ 73.7 $ 263.0 $ 45.0 $ 308.0 Interest expense, net (74.6) 10.1 (64.5) (18.1) (82.6) Other income, net 24.3 (17.6) 6.7 — 6.7 Income taxes (5.2) (41.4) (46.6) (6.2) (52.8) Net income attributable to noncontrolling interests (1.8) — (1.8) — (1.8) Net income from continuing operations attributable to Avient shareholders $ 132.0 $ 24.8 $ 156.8 $ 20.7 $ 177.5 Weighted average diluted shares 90.6 Impact to diluted shares from January 2020 equity offering 1.5 Pro forma weighted average diluted shares 92.1 Pro forma adjusted EPS $ 1.93 (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition Year Ended December 31, 2019 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient Sales $ 2,862.7 $ — $ 2,862.7 $ 1,118.6 $ 3,981.3 Operating income $ 156.8 $ 71.7 $ 228.5 $ 72.9 $ 301.4 Interest expense, net (59.5) — (59.5) (33.4) (92.9) Other income, net 12.1 (10.0) 2.1 — 2.1 Income taxes (33.7) (5.9) (39.6) (9.1) (48.7) Net income attributable to noncontrolling interests (0.2) — (0.2) — (0.2) Net income from continuing operations attributable to Avient shareholders $ 75.5 $ 55.8 $ 131.3 $ 30.4 $ 161.7 Weighted average diluted shares 77.7 Impact to diluted shares from January 2020 equity offering 15.3 Pro forma weighted average diluted shares 93.0 Pro forma adjusted EPS $ 1.74 (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 5 AVNT November Investor Meetings.pdf AVNT Q3 2021 Earnings Presentation.pdf Final 10.27 606pm Q3 21 IR Deck Version v1.pdf
https://www.avient.com/sites/default/files/2023-09/Avient Sustainability Day 2023 - Website %289.19%29.pdf
DISCLAIMER Avient Corporation 3 Avient Corporation 4 Welcome Bob Patterson Chairman, President, and Chief Executive Officer INTRODUCTION Sustainability for a Better Tomorrow Jamie Beggs Senior Vice President and Chief Financial Officer Avient Corporation 5 WE ARE A FORMULATOR CUSTOM FORMULATION Avient Corporation 6 Avient Corporation 7 WE ARE INNOVATORS 2,500+ ACTIVE PATENT FILINGS WORLDWIDE 1,100+ RESEARCH AND DEVELOPMENT ASSOCIATES >85% Stage-gate technology projects enable sustainable solutions INDIA INNOVATION CENTER 33% 2022 VITALITY INDEX 140+ MATERIAL SCIENCE PhD ASSOCIATES Avient Corporation 8 3% 3% 5% Avient Specialty Formulators Other Specialty / Chemical Companies CAPEX / Revenue 2023E Global footprint enables greater flexibility to exceed needs of customers and deliver localized technical and formulation expertise 35 9 36 24 Manufacturing Locations by Region WE ARE ASSET LIGHT Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA Avient Corporation 9 Asset-light flexibility enables more nimble manufacturing capabilities and lower overhead Periods of economic weakness have driven higher levels of cash generation due to working capital improvement PROVEN TRACK RECORD OF HIGH FREE CASH FLOW CONVERSION 78% 78% 80% 80% 81% 78% 84% 83% 80% 79% 50% 55% 60% 65% 70% 75% 80% 85% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E 0 50 100 150 200 250 300 350 400 Fr ee C as h Fl ow C on ve rs io n Fr ee C as h Fl ow FCF $ AVNT FCF Conversion % S&P FCF Conversion % 2 Recent Divestitures - Combined $1.7B in Proceeds PORTFOLIO EVOLUTION Avient Corporation 10 Combined $3.6B Investment in Acquisitions Since 2016 Color Business Distribution 2016 2022 PORTFOLIO TRANSFORMATION 7% 46% 66% 87% 100% 0% 20% 40% 60% 80% 100% 2005 2010 2015 2020 2023 % o f A dj us te d EB IT DA Commodity JVs Distribution Performance Products & Solutions Specialty Businesses Adjusted EBITDA from Specialty Applications Avient Corporation 11 END MARKET TRANSFORMATION Packaging Consumer Healthcare Defense Avient Corporation 12 10% 19% 8% 23% 4% 7% 7% 2006 2023E Other Industri es 78% Healthcare Consumer Packaging 22% 56% 14% 10% 43% 9% 2006 2023E Reduced Exposure to Cyclical End Markets End Market Diversification Transportation Building & Construction 57% 19% Defense IMPROVING PROFITABILITY AND EXPANDING MARGINS Avient Corporation 13 Adj.
EBITDA Margins (1) 5.4% 11.5% 16.0% 2006 2018 2023E • Delivered on organic growth combined with transformative and bolt-on acquisitions • Divested commodity businesses tied to more cyclical end markets • Expanded presence in high growth areas of sustainable solutions, composites, healthcare applications and emerging regions LONG-TERM REVENUE GROWTH DRIVERS Avient Corporation 14 Growth Drivers Long-Term Growth Rate Sustainable Solutions 8–12% Composites 8–10% Healthcare 8–10% Asia / LATAM 5% Other (GDP growth) 0–2% Avient 6% 60%+ Key Growth Drivers Sustainable Solutions Composites, Healthcare, Asia / LATAM Overlap Other (GDP Growth) HISTORICAL GROWTH DRIVER PERFORMANCE Avient Corporation 15 Composites $51 $84 $212 $668 2016 2018 2020 2022 Organic CAGR 10% Healthcare $108 $113 $231 $293 2016 2018 2020 2022 Organic CAGR 11% Asia/Emerging Regions $265 $358 $726 $830 2016 2018 2020 2022 Organic CAGR 12% $340 $455 $790 2016 2018 2020 2022 $1,175 Sustainable Solutions Organic CAGR 11% (Sales $ in millions) Avient Corporation 16 $340M $405M $455M $550M $790M $915M 2016 2017 2018 2019 2020 2021 2022 Revenue From Sustainable Solutions 2016-2022 ($ in millions) 11% Organic CAGR $1,175M Lightweighting Eco-Conscious Recycle Solutions VOC Reduction Sustainable Infrastructure Human Health & Safety Reduced Energy Use Bio-polymers Solutions to increase recycled content and minimize plastic waste Solutions to reduce weight and energy consumption Solutions to preserve and protect natural resources & human life SUSTAINABILITY: FOCUS TODAY Sustainability Strategy Walter Ripple Vice President, Sustainability Avient Corporation 17 OUR SUSTAINABILITY COMMITMENT As the world’s premier provider of specialized and sustainable materials, services, and solutions, Avient is committed to meeting the needs of the present without compromising future generations’ ability to meet their needs.
Plastics Pact Post-Consumer Recycle (PCR) Color Predictive Tool Innovation Award, Winner: Plastics Industry Association Product Technology Innovation, Winner: Plastics Recycling Awards Europe 2023 Additive for Enhanced Recycling Innovation Award, Finalist: Plastics Industry Association Product Technology Innovation, Finalist: Plastics Recycling Awards Europe 2023 Service Innovation Enables Quality Recycle Product Innovation Enables PCR Claims + Low CO2 Product Innovation Protects Quality Recycle …are Growing at Twice the Rate as Conventional ProductsSustainably-Branded Products… Consumers Are demanding recyclability and eco- conscious products Governments Are mandating changes through legislation, taxes, and regional accords STAKEHOLDER INFLUENCE DRIVES DEMAND For Sustainable Products From Sustainable Companies Brand Owners Have committed to ambitious goals to achieve sustainability metrics Avient Corporation 77 Avient Corporation 78 SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH 8-12% Long Term Growth 18 46 2023 2032 Global Offshore Annual Wind Installations (in Gigawatts) 50 90 2022 2030 Medical Plastics Market Size (in $Billions) 2020 2030 12% CAGR 3% CAGR Recycled Plastics Virgin Plastics Growing Demand for Recycled Content Avient Sustainable Solutions 11% CAGR 8% CAGR Sources: McKinsey, Bloomberg, Grand View Research Avient Corporation 79 Increasing the use of recycled content Reducing weight to lower fuel consumption 2022 SALESDESCRIPTION $340M $310M $525M OUTCOMES Enabling customers to advance the circular economy Shrinking carbon footprint and decreasing emissions Making our planet a better place for all Using fewer natural resources; protecting human life $1,175MTOTAL SALES SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH AVIENT IS WELL-POSITIONED A Clean House Avient holds leading ratings on ESG matters of importance to customers, countries, and key stakeholders Leading Portfolio Our formulation expertise and materials are meeting the unique sustainability needs of our customers around the world in endless applications 8-12% Long-Term Growth RateAvient’s Sustainable Solutions Investing in Innovation 85% of our opportunity funnel is directed at sustainable solutions addressing unmet customer needs Avient Corporation 80 Avient Corporation 81 ADJUSTED EBITDA MARGIN EXPANSION • Transformative acquisitions combined with divestitures of more cyclical businesses have improved margins over 400 bps since 2018 • 20% long-term margin goal to be driven by key growth drivers, with sustainable solutions playing a meaningful role 5.4% 11.5% 16.0% 17.3% 20% 20.0% 2006 2018 2023E Recovery Growth Drivers Strategic Objective 20%+ +1%+ +3%+ Community Service 7x Safer than Industry Average World-Class Safety Leadership Development Over $19 million raised since 2007 Diversity & Inclusion PEOPLE AND CULTURE Avient Corporation 82 Avient Corporation 83 • 6% annualized long-term sales growth leveraging sustainable solutions, composites, healthcare, and emerging regions • Expand EBITDA margins to 20% • Deliver annual EBITDA and EPS growth of 10% and 15% • Maintain asset-light, 80% free cash flow conversion profile and be valued as a specialty formulator • Continue fostering our Great Place to Work® culture LONG-TERM OBJECTIVES Avient Corporation 84 Wrap Up and Q + A Bob Patterson Chairman, President, and Chief Executive Officer Avient Corporation 85 Investor Deck_9_19_23 v4_WEBSITE_GAAP.pdf 2023 SR Non-GAAP Rec v3
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Morgan%2520Stanley%2520Conference.pdf
Leverage PolyOne’s global reach Phase 1 Phase 2 Phase 3 18-20% operating margins Invest in commercial resources I N V E S T - T O - G R O W P R O O F O F P E R F O R M A N C E PolyOne Corporation 23 Commercial Resources Operating Income ($ in millions) Operating Margins 243 335 At Acquisition Today $36 $90 At Acquisition Today 11% 20% At Acquisition Today Established Acquisitions (> 7 years) + 40% + 150% + 900 bps I N V E S T - T O - G R O W D R I V I N G T H E F U T U R E PolyOne Corporation 24 Commercial Resources Operating Income ($ in millions) Operating Margins 113 144 206 At Acquisition Today Goal $16 $18 $60 At Acquisition Today Goal 7% 8% 18-20% At Acquisition Today Goal Recent Acquisitions (< 2 years) PolyOne Corporation 25 Average Company Size # of Possibilities Rationale 250 • Local to regional footprint • Niche technology focus • Concentrated customer base $50M–$200M 150 • Regional to global footprint • 1–3 specialty technologies • Diversified customer base >$200M 30 • Global footprint with local service • Diverse specialty technologies • Highly diversified customer & market portfolio S T R O N G P I P E L I N E D R I V E N B Y F R A G M E N T E D M A R K E T $0 $150 $300 $450 $600 $750 2011 2012 2013 2014 2015 2016 2017 2018 $809M R E T U R N I N G C A S H T O S H A R E H O L D E R S O V E R $ 1 B I L L I O N S I N C E 2 0 1 1 PolyOne Corporation $0.16 $0.20 $0.24 $0.32 $0.40 $0.48 $0.58 $0.70 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 3-Year Dividend Plan Cumulative Share Repurchases (In millions) Increasing Annual Dividend 26 6.3% 14.0% 15.0% 16-17% 2009 2017 Platinum Vision Updated Expectations R O I C D R I V E S S H A R E H O L D E R R E T U R N PolyOne Corporation 27 PolyOne Corporation 28 W H Y I N V E S T I N P O L Y O N E ?
T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y Growing leadership position in attractive markets Innovation, technology and service are differentiators Capital management is a strength: Record-setting cash generation to continue for years Expand ROIC while increasing invested capital Proven acquisition strategy with robust pipeline Commercial investments are fueling momentum and generating organic growth SERVICE: T H E T I M E L E S S D I F F E R E N T I A T O R PolyOne Corporation 29 T A L E N T D E V E L O P M E N T PolyOne Corporation 30 Leadership Program Participants 2012 2013 2014 2015 47 0 86 2016 2017 125 169 216 Campus Hires 2008 2011 2014 2017 0 25 90 47 PolyOne LSS Blackbelts 2008 2011 2014 2017 0 67 202 147 A U N I Q U E C U S T O M E R E X P E R I E N C E Industrial Design IQ DESIGN LABS PolyOne Corporation 31 Material & Color Expertise Manufacturing Expertise 3 14 2014 2017 Industrial designers $0 $7M 2014 2017 $4M $40M 2014 2017 Opportunity funnel New business revenue LSS CUSTOMER FIRST PolyOne Corporation 32 Customer Projects Enables sales growth by building more intimate customer relationships, giving us insight to customers’ needs, with a service that is not easily replicated 2014 2017 2 85 3 D P R I N T I N G B R I N G I N G N E W I D E A S T O L I F E PolyOne Corporation 33 Enables validation of fit and function Shortens design cycle and time to market Avoids tooling rework Drives innovation Delivers substantial customer value PolyOne Corporation 34 From concept to production M O N T H M O N T H M O N T H M O N T H M O N T H M O N T H 99.9% Reduction in turnaround time Traditional Timeline up to 24 weeks PolyOne ColorMatrix Select™ 6 hours Innovative system for processors and OEMs to develop colors in real time Complete system that provides customers with the freedom to match, prototype and produce color entirely within their own facility C O L O R M A T R I X S E L E C T ™ “Being able to create color and produce parts in 1 day is unheard of in this industry” -CEO, Industry Leader I N N O V A T I N G W I T H P O L Y O N E PolyOne Corporation 35 SEGMENT HIGHLIGHTS C O L O R , A D D I T I V E S & I N K S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 36 Solid Colorants Performance Additives Screen Printing Inks Liquid Colorants Packaging 27% Industrial 14% Textiles 12% Building & Construction 10% Wire & Cable 10%Transportation 8% Consumer 7% Healthcare 6% Electrical & Electronics 3% Appliance 3% Operating Income & MarginRevenue by Region C O L O R , A D D I T I V E S & I N K S 2 0 1 7 R E V E N U E | $ 8 9 3 M I L L I O N $4 $25 $104 $139 0.9% 5.5% 12.2% 15.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20 30 40 50 60 70 80 90 100 110 120 130 140 150 2005 2009 2013 2017 PolyOne Corporation 37 Europe 32% United States 46% Asia 15% Canada 1% Mexico 4% Brazil 2% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 38 Engineered Formulations Advanced Composites Thermoplastic Elastomers Consumer 20% Transportation 19% Wire & Cable 13% Healthcare 11% Industrial 8% Packaging 7% Appliance 4% Building & Construction 3% Electrical & Electronics 15% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S Revenue by Region Operating Income & Margin 2 0 1 7 R E V E N U E | $ 6 2 4 M I L L I O N PolyOne Corporation 39 $21 $57 $76 0.1% 5.1% 9.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 20 30 40 50 60 70 80 2005 2009 2013 2017 Europe 28% United States 48% Asia 22% Canada 2% 12.1% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 40 Specialty Vinyl Solutions Healthcare Formulations Smart Device Materials Flame Retardant Polymers Building & Construction 30% Industrial 18% Transportation 16% Wire & Cable 15% Appliance 7% Packaging 5% Consumer 5% Electrical & Electronics 3% Healthcare 1% Asia 2% United States 77% Mexico 5% Canada 16% P E R F O R M A N C E P R O D U C T S & S O L U T I O N S Operating Income & MarginRevenue by Region 2 0 1 7 R E V E N U E | $ 7 2 1 M I L L I O N $40 $33 $56 $77 4.6% 3.6% 7.2% 10.7% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 0 10 20 30 40 50 60 70 80 90 100 2005 2009 2013 2017 PolyOne Corporation 41 $886 $668 $773 $721Sales D I S T R I B U T I O N E N D M A R K E T S & S U P P L I E R S PolyOne Corporation 42 Transportation 23% Healthcare 22% Industrial 18% Consumer 15% Appliance 7% Electrical & Electronics 6% Building & Construction 4% Packaging 3% Wire & Cable 2% $20 $25 $63 $73 2.9% 4.0% 5.9% 6.3% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 15 25 35 45 55 65 75 2005 2009 2013 2017 Operating Income & Margin2017 Revenue | $1.2 Billion http://www.polyone.com/Pages/VariationRoot.aspx http://www.polyone.com/Pages/VariationRoot.aspx T A R G E T E N D M A R K E T S & A P P L I C A T I O N E X A M P L E S PolyOne Corporation 43 Thermally Conductive Technologies Chemical Resistant Technologies Polymer Colorants Elastomeric Grips and Handles Structural Composites Antimicrobial Technologies Anti-Counterfeiting Technologies Target End Markets… Healthcare Catheter Technologies Under-hood Components Target End Markets… Automotive Interior Structural Components Sound & Vibration Management Roof Systems Air Management Electronics and Cameras Lighting Exterior / Interior Trim Braces & Brackets Fasteners Seals & Flaps Target End Markets… Consumer Thermally Conductive Components Polymer Colorants Elastomeric Grips and Handles Structural Composite Components Oxygen Scavenger Technologies Laser Marking Additives Antistatic Technologies UV Light Barrier Technologies Cap & Closure Colorants Process Optimization Technologies Antioxidant Technologies Density Modified Technologies Target End Markets… Packaging Impart weight, sound and metallic finish to caps and closures for cosmetics and spirits applications Elevate quality and prestige perceptions among high-end consumers Eliminate time and cost associated with secondary operations and assembly Luxury Packaging GravitechTM Density Modified Polymers Eliminate costs by increasing pigment density Enhance color performance without altering form and formulation Increase design capabilities by reducing weight and layer thickness Optimize Color Usage OnColorTM Super Concentrates Inhibit microbial growth on polymer surfaces Enhance value or products and devices Highly versatile concentrate with the ability to be incorporated into a wide variety of products Combat Bacteria Formation WithStandTM Antimicrobial Technology Durable, long-lasting products stand up to the most aggressive disinfectants Minimize environmental stress cracking and discoloration One of the broadest medically approved polymer and colorant portfolios Medical Device Housings Chemically Resistant Engineered Polymers Color & Design Services Greater control of color development and supply chain Work across entire design process from concept to commercialization Inspire creativity in the use of polymer materials, colors, and effects Innovative brand differentiation Faster development timelines Outdoor Applications Leading provider of high performance specialty materials for the recreational and sports & leisure industry Well positioned across all segments to address market needs Metal to Polymer Conversion Lightweighting Thermal Management Impact Performance ColorMatrix Fiber Colorant Solutions Proprietary advanced liquid color formulations and equipment enable greater efficiency and productivity Eliminates aqueous dyeing and its associated wastewater treatment Solid Color Concentrates Extrusion-spun fibers colored via solid masterbatch Fiber Colorants High flame retardancy to meet strict UL standards Greater processing and design flexibility Specialized additives provide long term color stability Diffusive lens materials improve light dispersion Smart Home Devices ResilienceTM Vinyl Solutions 1 Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to PolyOne shareholders and diluted adjusted earnings per share (EPS) from continuing operations attributable to PolyOne shareholders, excluding special items, to assess performance and facilitate comparability of results.
https://www.avient.com/sites/default/files/2022-05/OnFlex S HF Electrical Housing Case StudyNEW.pdf
This region of the world maintains a high sensitivity to preserving nature and the environment, and the producer’s desire to look for alternative material solutions not yet required by law follows this cultural tendency.
https://www.avient.com/sites/default/files/2020-09/cai-healthcare-application-bulletin.pdf
GLOBAL REGULATORY COMPLIANCE Our regional tech centers around the world offer regulatory support and product stewardship expertise to help you qualify your products BIO-COMPATIBILITY APPLICATIONS Bio-compatible additives and colorants, tested under USP Class VI and ISO 10993, allow your materials to achieve required functional performance while meeting brand and color standards STERILIZATION REQUIREMENTS A standard color range and deliberate formulations provide stability under harsh sterilization methods AUTHENTICATION TECHNOLOGY Protect your brands with our Percept™ anti-counterfeit, security and tracking taggant technologies, or utilize radiopacifiers for placement protection LASER MARKING SOLUTIONS Optimized for color and contrast without diminishing physical property characteristics for branding, inventory management, data coding, or universal device identification PRODUCT & PROCESS OPTIMIZATION Maximize production throughput or eliminate waste with solutions including dimensional stabilization, cycle time reducers, chemical foaming agents, nucleation or hybrid technology ONCOLOR™ HC Colorants designed to be healthcare-friendly.
https://www.avient.com/sites/default/files/2022-02/ColorMatrix Triple A Brochure.pdf
Full regulatory details for your particular region are available on request.
https://www.avient.com/sites/default/files/2023-04/ColorMatrix UV Brochure.pdf
Full regulatory details for your region are available on request.