https://www.avient.com/sites/default/files/2022-11/AVNT Q3 2022 Earnings Presentation - Website Final.pdf
Purchase price multiple rapidly declining on strength of business and synergy capture 7 $133 $201 2019PF 2022E 7 Clariant Color EBITDA Growth Purchase Price Multiple 10.8x 7.0x 6.4x 2019PF 2021 2022E w/ Full Synergies (1) (1) 11.9% 16.3% 2019PF 2022E EBITDA Margins (1) CLARIANT COLOR: TRANSFORMATIONAL ACQUISITION ($ in millions) (1) Financial information is pro forma to include a full year of Clariant Color business SUNBELT PVC Resins DSS 20 Acquisitions $4.8B Investment $2.7B of Annual Revenue 5 Divestments $2.3B Proceeds TPE PP&S HISTORIC SPECIALIZATION THROUGH M&A 8 Distribution DSM Protective Materials BOLT-ON ACQUISITION HISTORY 9 Commercial Resources Operating Income ($ in millions) Operating Margins 259 363 At Acquisition 2022E $40 $139 At Acquisition 2022E 9% 22% At Acquisition 2022E Established Acquisitions (> 7 years) + 40% + 248% + 1300 bps I N V E S T T O G R O W SPECIALTY TRANSFORMATION T O D A Y 7% 46% 67% 86% 100% 0% 20% 40% 60% 80% 100% 2005 2010 2019 2021 2022 PF % o f A d ju st ed E B IT D A • Commodity JVs • Distribution • Performance Products & Solutions • Specialty Businesses (1) Adjusted EBITDA is EBITDA excluding corporate costs and special items (2) Pro forma for the acquisition of Dyneema® and divestiture of Distribution (1 ) (2) 10 Healthcare 4% Packaging 8% Consumer 10% Building & Construction 43% Industrial 15% Transportation 14% Energy 4% Telecom. 2% 2006 2022 Pro Forma Healthcare 8% Packaging 23% Consumer 21% Building & Construction 10% Industrial 15% Transportation 9% Energy 4% Telecom. 4% Defense 6% END MARKET FOCUS ON LESS CYCLICAL INDUSTRIES 11 14.8% 17.6% 21.0% 2018 2020 2022 PF 1.8% 2006 15.3% 16.2% 17.0% 2018PF 2020PF 2022E CAI 2.7% 2006 SEM SPECIALTY EBITDA MARGIN EXPANSION 12 • Portfolio transformation accelerates growth in less cyclical, higher margin end markets • Investments in our composites platform continue to drive margin expansion (1) (1) (1) 2018 and 2020 financial information is pro forma to include a full year of Clariant Color acquisition PORTFOLIO EVOLUTION OVER THE YEARS 13 Adj.
Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net (loss) income from continuing operations attributable to Avient shareholders $ (27.4) $ (0.30) $ 33.7 $ 0.37 Special items, after tax (Attachment 3) 68.3 0.75 11.7 0.13 Amortization expense, after-tax 13.4 0.14 $ 11.0 $ 0.11 Adjusted net income / EPS $ 54.3 $ 0.59 $ 56.4 $ 0.61 2009* 2012* 2015 2018 Net income from continuing operations attributable to Avient common shareholders $ 106.7 $ 53.3 $ 144.6 $ 161.1 Joint venture equity earnings, after tax (19.0) — — — Special items, before tax (48.7) 55.1 87.6 59.5 Special items, tax adjustments (27.2) (18.9) (58.7) (25.3) Amortization expense, after tax 1.8 8.3 10.4 19.5 Adjusted net income from continuing operations attributable to Avient common shareholders $ 13.6 $ 97.8 $ 183.9 $ 214.8 Diluted shares 93.4 89.8 88.7 80.4 Adjusted EPS attributable to Avient common shareholders $ 0.15 $ 1.09 $ 2.08 $ 2.67 * Historical results have been updated to reflect subsequent changes to accounting principle and discontinued operations, excluding any changes as a result of discontinued operations from the sale of the Designed Structures and Solutions segment (DSS) and the Performance Products and Solutions segment (PP&S). 1 Year Ended December 31, Reconciliation to EBITDA and Adjusted EBITDA: 2006 2018 Sales $ 2,622.4 $ 3,533.4 Net income from continuing operations – GAAP $ 133.5 $ 160.8 Income tax expense 29.7 36.4 Interest expense 63.1 62.8 Depreciation and amortization 57.1 91.5 EBITDA $ 283.4 $ 351.5 Special items, before tax (34.0) 59.5 Depreciation and amortization included in special items — (3.0) JV - equity income (107.0) — Adjusted EBITDA $ 142.4 $ 408.0 EBITDA as a % of sales 5.4 % 11.5 % Reconciliation of Color, Additives and Inks EBITDA Q3 2022 Q3 2021 Operating Income 68.6 66.8 Depreciation and amortization 24.2 26.6 EBITDA 92.8 $ 93.4 Reconciliation of Specialty Engineered Materials EBITDA Q3 2022 Q3 2021 SEM(1) Pro forma APM(1) Pro forma SEM SEM Pro forma APM Pro forma SEM Operating Income 31.4 6.3 37.7 30.0 13.9 43.9 Depreciation and amortization 12.9 10.9 23.8 7.9 18.4 26.3 EBITDA $ 44.3 $ 17.2 $ 61.5 $ 37.9 $ 32.3 $ 70.2 Reconciliation of Specialty Engineered Pro Forma Sales Q3 2022 Q3 2021 Sales 258.2 231.7 Pro forma APM(1) 60.7 94.1 Pro forma sales $ 318.9 $ 325.8 Reconciliation of Avient Pro Forma Sales Q3 2022 Q3 2021 Sales 823.3 818.0 Pro forma APM(1) 60.7 94.1 Pro forma sales $ 884.0 $ 912.1 (1) - Q3 2022 SEM results reflect one month of APM’s results while owned by Avient, as the acquisition closed on September 1, 2022.
https://www.avient.com/products/long-fiber-technology/complet-pke-formulations
Complēt™ PKE polyketone formulations are long glass fiber reinforced polyketone solutions for structural applications using metal today.
https://www.avient.com/investor-center/news/polyone-raises-outlook-second-quarter-2019-adjusted-earnings
Light-weighting solutions that replace heavier traditional materials like metal, glass and wood, which can improve fuel efficiency in all modes of transportation
https://www.avient.com/investor-center/news/polyone-host-investor-conference-call
Light-weighting solutions that replace heavier traditional materials like metal, glass and wood, which can improve fuel efficiency in all modes of transportation
https://www.avient.com/investor-center/news/polyone-completes-clariant-masterbatch-acquisition-announces-new-name-avient-corporation
Light-weighting solutions that replace heavier traditional materials like metal, glass and wood, which can improve fuel efficiency in all modes of transportation
https://www.avient.com/knowledge-base/article/how-lightweight-automotive-components
LFTs still offer the ease of injection molding, like short-fiber polymers, but the fiber length and type (glass, carbon, etc.) are key factors in the strength, stiffness, and durability of plastics.
https://www.avient.com/products/advanced-composites/pultrusion-and-continuous-filament-winding-technology/gridcore-composite-utility-poles
Avient’s reinforced composite technologies use carbon, glass and aramid fibers with custom formulated thermoset or thermoplastic resins in continuous forming processes
https://www.avient.com/news/bic-amplifies-sustainable-design-avient-recycled-content-material-soleil-click-5-women-s-razor-handle
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
https://www.avient.com/investor-center/news/avient-expands-sustainable-solutions-portfolio-acquisition-magna-colours-ltd
Light-weighting solutions that replace heavier traditional materials like metal, glass and wood, which can improve fuel efficiency in all modes of transportation
https://www.avient.com/investor-center/news/avient-signs-agreement-divest-distribution-business-hig-capital-950-million
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