https://www.avient.com/sites/default/files/2023-07/AVNT Q2 2023 Earnings Press Release%5B43%5D.pdf
Compared to our prior adjusted EPS expectations, raw material deflation as well as improving mix from composites and sustainable solutions positively impacted the quarter and more than offset weaker demand conditions.” 2 “Sequentially, we’ve seen modest improvement in Asia, but demand across other regions remains sluggish, particularly in Europe, as consumers remain cautious with continued inflation and rising interest rates,” Mr.
We have remained consistent in our view all year that to the extent demand conditions weakened further, we would be able to offset that with strength in composites, improving margins and cost reductions.”
Examples include: • Dyneema®, the world’s strongest fiber™, enables unmatched levels of performance and protection for end-use applications, including ballistic personal protection, marine and sustainable infrastructure and outdoor sports • Unique technologies that improve the recyclability of products and enable recycled content to be incorporated, thus advancing a more circular economy • Light-weighting solutions that replace heavier traditional materials like metal, glass and wood, which can improve fuel efficiency in all modes of transportation and reduce carbon footprint • Sustainable infrastructure solutions that increase energy efficiency, renewable energy, natural resource conservation and fiber optic / 5G network accessibility Avient is certified ACC Responsible Care®, a founding member of the Alliance to End Plastic Waste and certified Great Place to Work®.
https://www.avient.com/sites/default/files/2020-12/sem-tri-fold-selection-guide.pdf
NAME BASE RESIN(S) TARGET MARKETS AVAILABLE FEATURES1 Artisan™ Pre-Colored Thermoplastics PA Powersports, Lawn & Garden, Marine Customizable pre-color solutions Scratch & mar resistance Weatherability & UV resistance High impact resistance Chemical resistance Simplifies processing/replaces paint Tailored temperature performance range: -20°C to 105°C Global availability Complēt™ OnForce™ PA, PP, PPA, PPS, TPU Consumer, Transportation, Industrial Long fiber technology Elevated impact and mechanical properties at room temperature Increased performance at temperature extremes Excellent creep and fatigue resistance Glass and carbon fiber filled options Lubricated, fire retardant, and pre-colored options Edgetek™ Bergadur™ ABS, LCP, PA, PC, PC/ABS, PC/PBT, PC/PET, PC/PSU, PEEK, PES, PEI, POM, PPA, PPS, PSU Consumer, Transportation, Industrial Strength and durability Chemical resistance High impact resistance Weatherability Flame retardant grades: UL 94 V-0, V-1, V-2, and 5VA Pre-color solutions Lightweighting 5G properties - Dk/Df and 3D/LDS Gravi-Tech™ PA, TPU, TPE, PBT Consumer, Transportation, Industrial Customized density, from 1.5 to 11 gm/cm3 Broad modulus and strength: flexible to rigid Chemical and corrosion resistance Gravi-Tech™ LD light density grades available LubriOne™ PA, PBT, PC, PEEK, PEI, POM, PP, PPA, PPS, PS Transportation, Electrical & Electronics, Industrial Low coefficient of friction Self-lubricating Chemical, wear, and corrosion resistance Maxxam™ PP Consumer, Transportation, Electrical & Electronics, Industrial Homopolymer and copolymer grades Optional additives: UV, heat stabilizers Standard grades available in natural and black Maxxam™ FR PE, PP Consumer, Transportation, Electrical & Electronics, Industrial Flame retardant grades: UL 94 V-0, V-1, V-2, and 5VA Flame retardant masterbatches Elevated UL RTI ratings Halogen-free flame retardant grades available Nymax™ Nymax™ PIR Bergamid™ PA 6, 66, 612, 12, co-polymers Transportation, Building & Construction, Electrical & Electronics Toughened grades: medium and high impact Optional additives: heat stabilized, lubricated, impact modified, nucleated Standard grades available in natural and black Pre-colored solutions available PIR grades with 20%–100% recycled content, supporting the circular economy SPECIALTY ENGINEERED THERMOPLASTICS 1 See technical data sheets for complete product details 1 See technical data sheets for complete product details 2 From NEU™ Specialty Engineered Materials, LLC., a wholly-owned subsidiary of Avient Corporation NAME BASE RESIN(S) AVAILABLE FEATURES1 Trilliant™ ABS, LCP, PA, PC, ABS, PA 6, PA 66, PC/ABS, PC/PSU, PEBA, PEEK, PES, POM, PPA, PSU Certified to USP Class VI Formulations locked down Drug master file submissions by product stewardship Pre-colored, small lot production down to 50 lb–250 lb Sterilization, chemical resistance, and secondary process guidance Adherence to FDM-GMP manufacturing standards Antimicrobial technologies Materials for radiation shielding protection NEU™ Specialty Materials2 PEBA, TPU, PA 11, PA 12, PP, PE, TPE Radiopacifiers, stabilizers, and surface modifiers Antimicrobial technologies Pre-colored formulations Small lot capabilities Short lead times Versaflex™ HC TPE Overmolding Clear and heat resistant Ultra clear grades Ultra soft TPE gels, 30 shore OO FDA, USP Class VI, ISO 10993 approved grades Sterilizable under autoclave, radiation, and EtO gas Extrusion, injection, and blow moldable HEALTHCARE SPECIALTY THERMOPLASTICS NAME BASE RESIN(S) TARGET MARKETS AVAILABLE FEATURES1 reSound™ R Recycled Formulations PA6, PA66, PC Transportation, Consumer, Household Appliance, Electrical & Electronics, Industrial PA grades: Up to 100% recycled content PC grades: Up to 70% recycled content PIR and PCR grades available Support the circular economy Comparable performance to prime grades Customizable solution Surround™ ABS, PP, PBT, PC, PA 66 Transportation, Electrical & Electronics Integrated EMI/RFI shielding Long fiber technology Conductive properties Galvanic corrosion protection Lightweighting and ease of processing Stat-Tech™ ABS, PA, PC, PC/ABS, PC/PSU, PEEK, PEI, PES, PP, PPA Transportation, Electrical & Electronics Integrated EMI/RFI shielding Conductive properties Anti-static/dissipative properties Corrosion resistance Lightweighting and ease of processing Clean room materials for semiconductors available Therma-Tech™ LCP, PA, PEEK, PP, PPA, PPS Consumer, Transportation Thermally conductive Low coefficient of thermal expansion Corrosion resistance SPECIALTY ENGINEERED THERMOPLASTICS NAME BASE RESIN(S) TARGET MARKETS AVAILABLE FEATURES1 Barricade™ Elastomers with Fortrex™ Technology Barricade™ high-performance elastomers bring next genera- tion technology to market to bridge the gap between tradi- tional TPEs and silicone Healthcare, Industrial Aerospace, Appliances, Electronics High temperature compression set Processes on thermoplastic injection molding and extrusion equipment Customizable and colorable Process simplicity CROSSLINKABLE ELASTOMERS Barricade formulations leverage licensed Fortrex™ technology.
https://www.avient.com/sites/default/files/2023-11/AVNT Q3 2023 Earnings Presentation - Website.pdf
Additionally, Adjusted EPS excludes the impact of special items and amortization expense associated with intangible assets. 2 O P E N I N G RE MARK S B O B P A T T E R S O N C H A I R M A N , P R E S I D E N T A N D C E O Complementary technologies and customer relationships offer opportunity to advance commercial strategy Dyneema®, the world’s strongest fiber™, to accelerate growth of sustainable, ultralight and high performance applications AVIENT PROTECTIVE MATERIALS FIRST YEAR 4 Composites comprises over half of Specialty Engineered Materials, compared to 9% in 2016 Proven history of success in areas such as outdoor high performance, defense and sustainable solutions Composites 44% 56% 2023E Sales Collaboration & InnovationComposites as a % of SEM People & Culture Talented, passionate, and creative associates drive continued integration success and allow two cultures to come together as one Avient Lightweight Protective Laminates: PROJECTILE PROTECTION Dyneema® Fiber Solutions Cushioning + Fit + Comfort: LONG-TERM WEAR reSound™ Versaflex™ Thermoplastic Elastomers Strength + Durability + Light-Weighting: SOLID MOUNTING BRACKETS Nymax™ Bergamid™ Complēt™ Engineered Materials Durability + Lubricity: HELMET LATCHES Lubri-One™ Internally Lubricated Polymers Color Consistency and Weatherability CUSTOMIZED SPECIFICATIONS Avient Color and Additive Solutions Antennae Performance FAST, RELIABLE CONNECTIONS PREPERM™ Low-Loss Dielectric Thermoplastics AVIENT PROTECTIVE MATERIALS CROSS SELLING OPPORTUNITIES Wired Connections CONSTANT COMMUNICATION Syncure™ Cross-linkable Wire & Cable Formulations5 6 AVIENT PROTECTIVE MATERIALS CROSS SELLING OPPORTUNITIES 6 Q 3 P E RFO RMAN CE 15.4% 16.3% 2022 PF 2023 Results vs.
PRIOR YEAR $790 $710 2022 2023 $107 $112 2022 2023 Sales Adjusted EBITDA (in millions) $0.42 $0.47 2022 PF 2023 Adjusted EPS (in millions) - 10% + 5% + 12% Sales Adjusted EBITDA Adjusted EPS 12 $112 $500 Q4 FY $0.47 $2.30 Q4 FY Q4 AND FULL YEAR 2023 GUIDANCE $710 $3,130 Q4 FY Sales Adjusted EBITDA Adjusted EPS 13 (in millions) (in millions) Guidance: Free Cash Flow $180 $180 Prior Guidance Guidance FREE CASH FLOW & INCREASED DIVIDEND 13th Consecutive Dividend Increase 0.16 0.26 0.42 0.58 0.79 0.85 0.99 1.03 2011 2013 2015 2017 2019 2021 2023 2024 14 S U S TAI NABI L I T Y DAY RE CAP SUSTAINABILITY AS A GROWTH DRIVERLONG-TERM REVENUE GROWTH DRIVERS 60%+ Key Growth Drivers Sustainable Solutions Composites, Healthcare, Asia / LATAM Overlap Other (GDP Growth) Total Company Revenue 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% 17 SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH 8-12% Long Term Growth 50 90 2022 2030 Medical Plastics Market Size (in $Billions) 2020 2030 Recycled Plastics Virgin Plastics Growing Demand for Recycled Content Avient Sustainable Solutions 18 46 2023 2032 Global Offshore Annual Wind Installations (in Gigawatts) Sources: McKinsey, Bloomberg, Grand View Research SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH 18 • 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% 2006 2018 2023E Recovery Growth Drivers Strategic Objective 20%+ +1%+ +3%+ ADJUSTED EBITDA MARGIN EXPANSION 19 • 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 CREATING A WORLD-CLASS SUSTAINABLE ORGANIZATION 20 Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special items, to assess performance and facilitate comparability of results.