https://www.avient.com/idea/balancing-beauty-and-sustainability-tpes
There are two types of recycled content: post-consumer recycled (PCR) or post-industrial recycled (PIR).
Due to the commingled nature of the recycled stream for PCR raw material, the application will typically need to be a darker color such as black or dark gray
Uncolored TPEs are naturally dark (typically in gray or brown), based on assorted colors from recycle streams
https://www.avient.com/news/avient-launches-resound-r-recycled-content-portfolios-north-america-and-asia
Recycled-content TPEs and polyamides
Available in North America, injection-moldable reSound R VX TPEs utilize 25 percent (PCR) and up to 40 percent (PIR) recycled content, and both grades can be overmolded onto polypropylene (PP).
TPEs, as well as recycled nylon 6 and 66, are commercially available in North America.
About Oceanworks
Oceanworks® is the global marketplace for recycled ocean plastics.
https://www.avient.com/sites/default/files/2021-10/avnt-q3-2021-earnings-presentation_0.pdf
This
innovation drives performance and is
reflective of consistent, strategic
investments in technology and people
Clariant Color business
acquired July 1, 2020
1
1
2
3
5
7
7
7
9
10
30
40
14
25
13
22
35
9
19
13
18
41
Current Additional share needed to reach 2025 target
B R A N D O W N E R S C O M M I T T E D TO I N C R E A S I N G
U S E O F R E C YC L E D M AT E R I A L S
8
Brand Owner 1
Brand Owner 3
Brand Owner 2
Brand Owner 7
Brand Owner 4
Brand Owner 10
Brand Owner 6
Brand Owner 11
Brand Owner 5
Brand Owner 8
Brand Owner 9
Brand Owner 12
Brand Owner 13
Percent recycled plastic used:
(examples and not exhaustive)
(1)
(1) Latest year reported.
Post-consumer recycled content as percentage of total plastic packaging volume, by weight
E NA B L I N G T H E U S E O F R E C YC L E D C O N T EN T
T O P 5 G A P S T H A T W E A R E A D D R E S S I N G
2) DECONTAMINATION1) COLOR MANAGEMENT 3) MAINTAINING MECHANICAL
PROPERTIES
4) MONO-MATERIAL
CONSTRUCTION
5) CONSISTENT RECYCLED
MATERIAL QUALITY
9
G U I D I N G B R A N D S T O W H A T I S P O S S I B L E
C A S E S T U DY W I T H B R A N D OW N E R
Recycled ResinVirgin Resin
10
S U S TA I NA B I L I T Y F O R A B ET T E R TO M O R ROW
11
• Revenue from sustainable solutions expected
to grow 18% in 2021 as our innovation efforts
and collaboration with customers continues to
accelerate
• Investments centered around innovation and
global sustainability megatrends
o Enabling a circular economy –
Technologies that allow for increased use of
post-consumer recycled (PCR) material and
improve recyclability of plastics
o Light-weighting – Composites and CAI
applications to reduce weight and material
requirements, which minimize energy and
carbon emissions
o Eco-Conscious – Health and human safety
applications as well as Avient’s alternative
materials to replace lead, PVC, halogens,
BPA and other less eco-friendly options
1111
*Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”)
**2020 is Pro Forma to include full year of the Clariant Color business
2016 2017 2018 2019 2020PF** 2021E
$405M
$455M
$340M
$550M
$790M
Revenue From Sustainable Solutions* 2016-2021
$930M
Q3 2020 $925 $74
Sustainable Solutions 35 19% 14
Healthcare 51 44% 10
Composites 13 39% 6
Growth in Asia / LATAM 14 11% 3
Other 177 39% 16
Sub-total $1,215 31% $123
Supply Chain Disruption Costs (19)
COVID Response Applications (5) (3)
FX Impact 10 2
Synergies 12
Incentives, Travel, Other Employee Costs (16)
Q3 2021 $1,220 32% $99
Q3 2021 SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
12
Sales Growth Rate
Adjusted
Operating
Income$ millions
13
Q3 2020 Q3 2021
(1) Financial information is presented on a constant currency basis
(1)
(44% of total revenue)
(56% of total revenue)
Q3 END MARKET SALES PERFORMANCE
+20%
+31%
+40%
+24%
+46%
+40%
+14%
+33%
Energy Telecom Building &
Construction
Transportation Industrial Healthcare Packaging Consumer
Q3 YEAR-OVER-YEAR EBITDA BRIDGE
14
• Demand driven by growth
in sustainable solutions,
healthcare and consumer
applications
• Price increases more than
offsets raw material and
supply chain impacts
• Synergy capture on pace
to achieve $50M in annual
savings in 2021
Q3 2020 $ 111
Demand 29
Adjusted
EBITDA$ millions
CAI:
Price / Mix 51
Inflation (37)
SEM:
Price / Mix 25
Inflation (22)
Distribution:
Price / Mix 108
Inflation (103)
Net Price Benefit 22
Supply Chain Disruption Costs (19)
COVID Response Applications (3)
Synergies 12
Incentives, FX, Other (16)
Q3 2021 $ 136
15
• Price increases have more than
covered raw material and freight
inflation impacts of $300M year-
to-date compared to 2020
• Demand impact driven by
Q3 seasonality for the business
Q2 TO Q3 SEQUENTIAL EBITDA BRIDGE
Q2 2021 $ 159
CAI:
Price / Mix 17
Inflation (8)
SEM:
Price / Mix 6
Inflation (5)
Distribution:
Price / Mix 35
Inflation (35)
Net Price Benefit 10
Supply Chain Disruption Costs (4)
Demand / Seasonality (35)
Other 6
Q3 2021 $ 136
Adjusted
EBITDA$ millions
F U L L Y E A R 2 0 2 1
O U T L O O K
$308
$430
2020PF 2021E
$1.93
$3.00
2020PF 2021E
FULL YEAR GROWTH PROJECTIONS
( T O TA L C O M PA N Y )
17
Sales Adjusted Operating Income
$3,783
$4,750
2020PF 2021E
+ 26%
Adjusted EPS
+ 40% + 55%
(in millions) (in millions)
(1) Financial information is pro forma to include a full year of Clariant Color acquisition
(1)(1)(1)
$1.74
$1.93
$3.00
2019PF 2020PF 2021E
$442
$457
$580
2019PF 2020PF 2021E
FULL YEAR 2019 – 2021 GROWTH
( T O TA L C O M PA N Y )
18
Sales Adjusted EBITDA
$3,981
$3,783
$4,750
2019PF 2020PF 2021E
+ 19%
Adjusted EPS
(1) Financial information is pro forma to include a full year of Clariant Color acquisition
(1) (1)
(in millions) (in millions)
(1)(1)
+ 31% + 72%
(1) (1)
0.1 0.1
0.2
0.5
0.6
0.7
0.8
0.9
0.9
1.0 1.0
11 12 13 14 15 16 17 18 19 20 21
40%
99%
YTD 5 - YR 10 - YR
0.16
0.20
0.26
0.34
0.42
0.50
0.58
0.72
0.79 0.81
0.85
0.95
11 12 13 14 15 16 17 18 19 20 21 22
2.1x
Q4 NET LEVERAGE
~$1Bn
REPURCHASED
OVER LAST 10 YEARS
~$450MM
PAID OVER LAST 11 YEARS
C R E AT I N G VA LU E F O R SH A R E H O L D E R S
19
Share Performance Dividends Share Repurchases Deleveraging
3.5x
2.1x
2019PF 2021E
Growing Dividend Cumulative Buybacks Net Leverage
$
B
n
$
p
e
r
sh
a
re
Total Shareholder Return
~$4Bn
MARKET CAP INCREASE
OVER LAST 10 YEARS
(1) Share performance includes reinvested dividends and is as of 10.25.2021
(2) Financial information is pro forma to include a full year of Clariant Color acquisition
(1)
(2)
494%
2 0 2 1 AV I E N T I N V E S TO R DAY
20
• Investor Day to be held December 9, 2021 in New York, NY
• The company will be doing a deep dive into its key long-
term growth drivers with a particular focus on sustainable
solutions
Revenue Growth Drivers
Long-Term
Growth Rate
Sustainable Solutions 8–12%
Healthcare 8–10%
Composites / 5G 10%
Growth in Asia / LATAM 5%
Other (GDP growth) 2–3%
Avient 6.5%
• Senior leadership team will also provide further details on
the Clariant Color integration, as well as capital allocation
priorities
PEER COMPARISONS
21
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
With the Clariant Color business
acquisition and divestment of the
PP&S business, our exposure is now
concentrated in less-cyclical and
high-growth markets, with increased
geographic diversification and a more
specialized portfolio that can
significantly expand EBITDA margins.
24
Avient reflects 2021 estimated EBITDA of $580M
O U R VA LUATI O N V E R S U S P E E R S
Avient Specialty
Formulators
Other
Chemical/Specialty
Companies
11.0
18.3
16.3
15.4
14.5
11.6 11.1
36.2
28.0
24.9
13.0
11.5 11.3
10.0
9.2 8.8
7.7
6.7
A
vi
e
n
t
K
W
R
P
P
G
A
V
Y
R
P
M
F
U
L
G
C
P
A
L
B
H
X
L
E
C
L
A
S
H
F
M
C
B
N
R
S
C
L
U
N
V
R
E
M
N
C
E
H
U
N
S U M M A RY: W H Y I N V E S T I N AV I E N T ?
https://www.avient.com/sites/default/files/2021-09/olefins-brochure.pdf
POLYOLEFINS
ALIGNING WITH
SUSTAINABILITY GOALS
POLYOLEFINS
ARE EVERYWHERE
Polyethylene (PE) and polypropylene (PP) are among
the most popular plastics in the world.
And, they can fit a sustainable model as
they have a high potential to be successfully recycled.
This can
include increasing the percentage of post-consumer
recycled content (PCR), reducing the carbon footprint
during production or shipping, or improving package
recyclability.
https://www.avient.com/idea/making-plastic-parts-more-sustainable
Recycled raw materials come in two forms: post-industrial recycled (PIR) and post-consumer recycled (PCR).
Black or dark gray colors are typically easier to achieve with recycled materials due to the comingled items that may contaminate the recycling stream.
However, black or dark gray colors can be difficult to be detected by near-infrared (NIR) automatic sorting equipment at recycling facilities.
https://www.avient.com/news/avient-brings-sustainable-innovation-npe-2024
Nymax™ REC Recycled Nylon Formulations: two new super tough PA6 and PA66 grades added to Avient’s recycled content portfolio, each containing post-industrial recycled content, resulting in up to 81% lower cradle-to-gate product carbon footprint than traditional alternatives made without recycled content, and will be presented during Avient’s technical seminar at NPE, “Exploring Sustainable Alternatives to Traditional Polyamides,” by Jeremy Gray, Application Development and Technical Service Engineer, Specialty Engineered Materials at Avient, on May 9 at 11 a.m.
Enhancing Recyclability: Increasing recycled content in polymers and enhancing recyclability through intelligent design to develop innovative approaches to brand differentiation and meet consumer demands for eco-conscious products
Unique technologies that improve the recyclability of products and enable recycled content to be incorporated, thus advancing a more circular economy
https://www.avient.com/sites/default/files/2020-12/packaging-solution-bulletin-selector-guide.pdf
CHEMICAL RESISTANT TPEs ADD FUNCTIONALITY THAT BRINGS VALUE
TO CONSUMERS
• Chemical Resistance – Resists aggressive
soaps, detergents, lotions, oils and solvents
found in cosmetic, personal care and
household products
• Regulatory* – Compositionally compliant
with certain FDA and REACH regulations
• Value – Economical alternative to silicone
and over-engineered medical grade TPEs
• Easy to Process – Can be injection molded
and overmolded right onto the substrate
including PP, ABS, etc
Differentiation – Add color and texture
to stand out from the competition
• Recyclable – TPEs are compatible with most
municipal recycle streams
• Global Support – Avient is a global supplier
with manufacturing and technical support in
Europe, Asia and North America
To learn more about chemical resistant
GLS TPEs for packaging, contact Avient at
+1.844.4AVIENT (+1.844.428.4368).
https://www.avient.com/news/new-black-colorants-polyone-support-circular-economy-turn-former-waste-recyclable-packaging
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New Black Colorants from PolyOne Support Circular Economy, Turn Former Waste into Recyclable Packaging
These colorants will help black packaging support the circular economy by enabling them to be recycled rather than landfilled.
OnColor™ Infrared Sortable Black for Recyclable Packaging contain no carbon black pigment, permitting the automatic optical sorting sensors used in many waste management plants to detect black polymers and sort waste into the correct recycling streams.
https://www.avient.com/sites/default/files/2025-01/NEUSoft Product Selection Guide.pdf
PMS 324C
PMS Cool Gray 11C
PMS Black 6C
PMS 290C
PMS 1767C
PMS 144C
PMS 3405C
PMS 358C
https://www.avient.com/sites/default/files/2024-07/Colorants _ Additives for Appliances Brochure.pdf
Recycled Content &
Recyclability
We offer color concentrates that use post-consumer
recycled (PCR) polypropylene (PP) and polystyrene
(PS) as carrier resin.
Recyclability Assessment
at CycleWorks™
Our Cycleworks™ Innovation Center specializes
in testing and evaluating recycling solutions.
Recycling trials taking into consideration standard
recycling protocols can be run to provide a real-
world recyclability evaluation.