https://www.avient.com/sites/default/files/2021-10/avnt-q3-2021-earnings-presentation_0.pdf
APPENDIX
Performance
Additives
Pigments
TiO2
Dyestuffs
4%Polyethylene
Nylon
Polypropylene
Other Raw
Materials
29%
Styrenic Block
Copolymer
~1/3 hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
27
• 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%
Latin America
2021 YTD SEGMENT, END MARKET AND GEOGRAPHY
29
GEOGRAPHY REVENUESEGMENT FINANCIALS
23%
19%
Building and
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
34%
21%
7%
Building &
9%
2% Telecommunications
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
31%
42%
21%
Latin America
END MARKET REGION
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
28%
11%
Building &
7%
2021 YTD REVENUE | $691 MILLION
END MARKET
55%
20%
REGION
31
DI S TR IBU T I ON
26%
22%
20%
Building and
81%
Latin
America
END MARKET REGION
K E Y S U P P L I ER S
2021 YTD REVENUE | $1 .2 BILL ION
32
TOTA L C O M PA N Y R E G I O N A L S A L E S
BY END MARKET
30%
27%
Building &
2% Energy
(16% of sales)
31%
17%
Building &
(25% of sales)
33
19%
17%
Building &
US &
Canada
(51% of sales)
13%
42%
33%
3%
Building &
LATAM
(8% of sales)
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Dollars in millions, except for per share data)
September 30, 2021
Reconciliation to Condensed Consolidated Statements of Income
GAAP
Special
Adjusted
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
September 30, 2020
Reconciliation to Condensed Consolidated Statements of Income
GAAP
Special
Adjusted
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
Three
Months
Nine
Months
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
Reconciliation of EBITDA by Segment
Nine Months
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 %
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 %
December 31, 2020
Reconciliation of Pro Forma Adjusted
Earnings per Share Avient
Special
Adjusted
Clariant MB
Pro Forma
Adjustments(1)
Pro Forma
Adjusted
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
December 31, 2019
Reconciliation of Pro Forma Adjusted
Earnings per Share Avient
Special
Adjusted
Clariant MB
Pro Forma
Adjustments(1)
Pro Forma
Adjusted
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
AVNT Q3 2021 Earnings Presentation.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/2024-01/AVNT January IR Presentation_w Non-Gaap Recs.pdf
Avient 2011, 2018 and 2021 multiples reflect trailing 12 months EBITDA at December 31.
28
EV / 2023E EBITDA
6.5
8.5
11.0 10.8
16.1 15.5
14.1 14.0
10.3
21.0
19.0
14.3
12.1 11.8 11.7 11.5
9.7
11
21
23
PM AV
FM
Avient Historic Multiple
Avient Specialty
Other Specialty /
AP P E N DI X
30
Performance
Additives
16%
Pigments
12%
TiO2
Dyestuffs
2%
Polyethylene
Nylon
Polypropylene
Styrenic Block
Copolymer
Other Raw
Materials
33%
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
2022 pro forma results for the acquisition of Avient Protective Materials
RAW MATERIAL BASKET
SEGMENT DATA
U.S. & Canada
40%
37%
18%
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
Building and
END MARKET REVENUE
$2,355M $402M
$1,300M $272M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$592M$3,653M
(1)
9%
32
(1) Total company sales and adjusted EBITDA of $3,653M and $592M, respectively, include intercompany sales eliminations and corporate costs
2022 REVENUE | $2 .4 BILLION
US & Canada
34%
38%
END MARKET REGION
33
34%
21%
Building &
1% Energy
2%
COLOR, ADDITIVES & INKS
2022 PRO FORMA REVENUE | $1 .3 BILLION
US & Canada
52%
35%
34
19%
8%Industrial
16%
9% Defense
Building &
END MARKET REGION
SPECIALTY ENGINEERED MATERIALS
32%
27%
14%
Building &
3%
1% Defense
1%
(18% of sales)
9%
2022 PROFORMA AVIENT REGIONAL SALES
27%
14%
17%
Building &
(37% of sales)Transportation
12%
Building &
US &
Canada
(40% of sales)
7%
56%
23%
7%
Building &
1%
LATAM
(5% of sales)
3%
35
BY END MARKET
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.
https://www.avient.com/sites/default/files/2024-12/AVNT Investor Day 2024 Presentation.pdf
FFT flake panels
Surface-modified
Color-stable,
permanent
anti-stat decking
Flame-retardant
wood composites
Novel multi-material solutions
Modular flame
retardant panels
Custom composite panels
Color solutions
for decking
Decking
Panels for Building
& Construction
Integrated
flame-retardant panels
Multifunctional composite panels
EXISTING EVOLVING EMERGINGEXISTING EVOLVING
FFT flake panels
Surface-modified
Color-stable,
permanent
anti-stat decking
Flame-retardant
wood composites
Novel multi-material solutions
Integrated
flame-retardant panels
Modular flame
retardant panels
Custom composite panels
Color solutions
for decking
Decking
Panels for Building
& Construction
Copyright © .
2024 19
digital tools,
data-driven insights
artificial intelligence
Higher run-rates, improved
yields, reduced downtime and
wastage
Manufacturing
execution
system
Reduction in time-to-market,
use of alternative formulations
to mitigate risks from resin
shortage
Color
design
Faster generation/repurposing
of content, enhanced search
engine optimization leading to
more engagement
Marketing
content
Copyright © .
2024 20
OUTCOME
Adj.
Free cash flow use
2020– 2024 est.
30%
37%
6%27%
Debt
paydown
Dividend
payments
Share
buybacks
M&A,
other
15% CAGR
Copyright © .
2024 62
Disciplined capital allocation
PRIORITIZATION AND PHILOSHOPY
Capex Expected annual spend between 3-5% of revenue to
support investment in organic growth
Dividends Increasing each year with underlying earnings growth
Debt pay down Target net debt to adjusted EBITDA less than 2.5x
Share repurchases Opportunistic buy backs
M&A De-emphasized in near term; complement organic growth strategy
with M&A over time, as needed
Copyright © .
2024 63
Avient is a compelling investment thesis
Ability to adapt & pivot to deliver results
highly motivated team with track record of
operational and commercial excellence
Global reach with local touch
customer-centric focus across continents and cultures
to serve locally and win globally
Innovation
differentiation by hybridizing technologies
to create platforms at scale
aligned to high growth market segments
and secular trends
MARGIN EXPANSION
and sustainable growth
ORGANIC GROWTH
complemented by M&A over time
as needed
Strong CASH GENERATION
and EXECUTION
Broad customer base and
COMPETITIVE ADVANTAGE
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Dollars in millions, except for per share data)
Below is a reconciliation of non-GAAP financial measures to their most directly comparable financial measures calculated and
presented in accordance with GAAP.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Investor%2520Day%25205-18-15.pdf
Richardson
Executive Vice President and
Chief Financial Officer
PolyOne Corporation Page 71
Who We Are Growing With
PolyOne Corporation Page 72
2014 Awards and Recognitions
PolyOne Corporation Page 73
2014 Financial Highlights
$131
$151
$191
$262
$320
Adjusted Operating
Income
$0.68
$0.82
$1.00
$1.31
$1.80
Adjusted EPS
($ millions)
PolyOne Corporation Page 74
2006 2015 Target 2014
“Where we were” (Est. in 2012) “Where we are”
Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 12 – 16% 14.7%
Global Specialty Engineered Materials 1.1% 12 – 16% 12.1%
Designed Structures & Solutions 1.4%(2012) 8 – 10% 7.3%
Performance Products & Solutions 5.5% 9 – 12% 7.7%
Distribution 2.6% 6 – 7.5% 6.1%
Specialty Platform % of
Operating Income 6.0% 65 – 75% 65%
ROIC 5.0% 15% 11.3%
Adjusted EPS Growth N/A Double Digit
Expansion 37%
Proof of Performance & 2015 Targets
PolyOne Corporation Page 75
2,883
2,565
2006 2014
Volume
(lbs in millions)
-11%
$219
$451
2006 2014
Commercial Investment
($M)
+105%
$303
$770
2006 2014
Adjusted
Gross Margin ($M)
+154%
*Total SG&A
Ours is Not a Cost Cutting Story
Investment in
Commercial Resources…
Drives Mix Improvement AND
Gross Profit $$ Expansion
PolyOne Corporation Page 76
Financial Strength
$76
$222
$154
$105
$176 $179
$230
2008 2009 2010 2011 2012 2013 2014
Adjusted Cash Flow from
Operations
($ in millions)
18.9%
11.7%
9.6% 9.6%
10.8% 10.9%
9.9%
2008 2009 2010 2011 2012 2013 2014
Working Capital %
of Sales
PolyOne Corporation Page 77
Financial Flexibility
$49
$317
$600
2015 2020 2023
Debt Maturities
As of December 31, 2014
($ millions)
Coupon: 7.500% 7.375% 5.250%
2.6x
2.0x
1.8x
1.9x
2011 2012 2013 2014
Net Debt / Adjusted EBITDA
PolyOne Corporation Page 78
Shares
Purchased
(M)
2012 1.2
2013 5.0
2014 6.3
Cash to Generate Value
Expand marketing,
commercial and technical
capabilities
Leverage supplier
partnerships for
innovation
Organic
Growth
Acquisitions
Share
Repurchases
Dividends
$0.16
$0.20 $0.24
$0.32
$0.40
$0.10
$0.20
$0.30
$0.40
$0.50
2011 2012 2013 2014 2015
Annual Dividend Targets that expand:
• Specialty offerings
• End market
presence
• Geographic
breadth
PolyOne Corporation Page 79
PolyOne Corporation Page 80
PolyOne Corporation Page 81
2020 Platinum Vision
Robert M.
Addressable market exceeds $40 billion
• Strong performance demonstrates that our strategy and execution
are working
• Megatrends and emerging opportunities align with our strengths
• Innovation and services provide differentiation, incremental pricing
power, and competitive advantage
• Strong and proven management team driving growth and
performance
PolyOne Corporation Page 92
Questions & Answers
Schedule I
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(Dollars in millions, except per share data)
Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented
in accordance with U.S.