https://www.avient.com/sites/default/files/2023-03/AVNT Mar 2023 Earnings Presentation.pdf
Pro Forma Financial Information
The Company acquired Avient Protective Materials (“Dyneema”) on September 1, 2022 (the “Acquisition Date”) and sold the Distribution segment on November 1, 2022.
GUIDANCE
DEBT / LEVERAGE R EDUCTION
• Completed sale of Distribution
and paid down $750M of debt
in November
• Strong free cash flow in fourth
quarter reduced leverage and
enabled paydown of additional
$200M of debt
• Fixed/Floating Debt Ratio 63/37
• Proven track record of
deleveraging following
acquisitions through consistent
free cash flow generation
$725 $725 $725
$575 $500 $400
$600
$525
$425
$650
$650
$650
$600
$2.40B
$2.20B
2030 Notes
2029 Term Loan
2026 Term Loan
2025 Notes
After Distribution
Divestiture
Year-End
8
Year-End
Leverage
3.8x 3.1x 2.9x
2023 Notes
After Avient
Protective Materials
Acquisition
$3.15B
20 22 TRA NSF OR MATI ONAL PORTFOLI O
ENHA NC EMENTS
9
EBITDA margins expanded
from 12% to 16%
Diversified end markets
with reduced exposure to
more cyclical industries
Dyneema®
Acquisition
$1.48B acquisition
strengthens composites
platform
Significantly improved
EBITDA margins $950M divestiture results
in 100% specialty sales
Strong exit multiple of 10x
TTM EBITDA despite
market volatility
Distribution
Divestiture
Improved
Portfolio
G ROW I NG C OM PO SI T ES P LAT F OR M
C O NT R I BU TI O NS TO S EM S EG ME NT
10
Note: 2022 is pro forma for Avient Protective Materials
2016 Sales 2022 Sales
Advanced
Composites
51%
$560M $1,300M
Advanced
Composites
9%
C O M P O S I T E S P O R T F O L I O
D Y N E E M A ® E X P A N D S O U R E N G I N E E R E D F I B E R S A N D T A P E S T E C H N O L O G Y
LFT Tapes Laminates/Panels Shapes Pultrusion Engineered Fibers
11
ADVA NC ED C OM POSI TES PERFORMA NCE
12 (1) Pro forma for the acquisition of Avient Protective Materials
Sales
$51
$84
$212
$668
2016 2018 2020 2022
$4
$10
$41
$169
2016 2018 2020 2022
EBITDA
(1) (1)
($ in millions)
PORTFOLIO EVOLUTION AND EPS EXPANSION
13
Adj.
$600 $592
2021 2022
$3.02 $3.04
2021 2022
FULL YEAR 2022 PERFORMANCE
( T O TA L C O M PA N Y P R O F O R M A )
19
Sales Adjusted EBITDA
$3,712 $3,653
2021 2022
- 2%
Adjusted EPS
- 1% + 1%
(in millions) (in millions)
(+ 4% excluding FX) (+ 5% excluding FX) (+ 9% excluding FX)
FULL YEAR 2022 SEGMENT PERFORMANCE
20
CAI
$2,402 $2,355
Sales
($ in millions)
$409 $402
EBITDA
SEM Pro Forma
$1,308 $1,300
Sales
$278 $272
EBITDA
(+ 4% excluding FX)
- 2% - 1%
(+ 5% excluding FX)
- 2%
(+ 4% excluding FX)
- 2%
(+ 2% excluding FX)
PRO FORMA FULL YEAR EPS BRIDGE
21
Pro Forma 2021 Adjusted EPS 3.02$
Foreign Currency (0.23)
Russia Import Sales (0.07)
Outdoor High Performance (0.13)
Color, Additives and Inks 0.18
Specialty Engineered Materials 0.24
Corporate Costs / Other 0.03
Pro Forma 2022 Adjusted EPS 3.04$
FULL YEAR EBITDA BRIDGE
( P R O F O R M A T O TA L C O M PA N Y )
22
$ millions
CAI:
Price / Mix 247
Inflation (176)
SEM:
Price / Mix 121
Inflation (77)
Net Price Benefit 115
Wage and Energy Inflation (47)
Clariant Color Integration Synergies 23
Incentives, Other Employee Costs 43
FX (34)
Full Year 2022 $592
Adjusted
EBITDA
Full Year 2021 $ 600
Demand (99)
Russia Import Sales (9) • Demand primarily impacted
by China lockdowns, 4th
quarter industrywide
destocking and declining
consumer sentiment
• Pricing outpaced inflation of
raw materials, wages and
energy
2 0 2 3 G U I D A N C E
$125
$530
Q1 FY
$0.55
$2.40
Q1 FY
2023 GUIDANCE
24
Sales Adjusted EBITDA
$845
$3,450
Q1 FY
Adjusted EPS
(in millions) (in millions)
CA SH FLOW / BALANCE SHEET
25
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Restructuring actions to
streamline operations and
improve profitability, primarily
in Europe
($ millions) 2023E
Cash Flow from Operating Activities 350$
Less:
Run-Rate CapEx (110)
CapEx for IT System Upgrade (25)
CapEx for Restructuring (15)
Total CapEx (150)
Free Cash Flow 200$
Adjusted EBITDA 530$
Net Debt / Adjusted EBITDA 2.9x
K E Y G R O W T H D R I V E R S
A N D T R A N S F O R M E D
P O R T F O L I O
GROW TH DR IVER S: PROV EN SUCC ESS
27 (1) Pro forma for the acquisition of Avient Protective Materials (APM)
COMPOSITES
$51
$84
$212
$668
2016 2018 2020 2022
Long Term Growth Rate
10%
Organic CAGR
10%
HEALTHCARE
$108 $113
$231
$293
2016 2018 2020 2022
Long Term Growth Rate
8-10%
Organic CAGR
11%
ASIA/EMERGING REGIONS
$265
$358
$726
$830
2016 2018 2020 2022
Long Term Growth Rate
5%
Organic CAGR
12%
$340
$455
$790
2016 2018 2020 2022
$1,175
SUSTAINABLE SOLUTIONS
Long Term Growth Rate
8-12%
Organic CAGR
11%
(1) (1)(1)
(Sales in $ millions)
#1 Color Formulator
Dyneema® - World’s Strongest
Fiber™
#1 in Composites applications
for outdoor high performance
#1 in Performance Inks
Customized solutions
140+ PhDs on staff
Rapid development of
innovative products
Extensive patent (2,500+)
portfolio
33% Vitality Index
Better-positioned toward stable,
high-growth end markets
Consumer, packaging,
healthcare and defense comprise
nearly 60% of sales
Agnostic to raw materials,
helping all customers achieve their
goals
Broad portfolio of diversified
sustainable solutions
90%+ of our innovation pipeline
invested in sustainable solutions
Long-term growth rate well
above GDP with expectations of
8-12%
L E V E R AG I N G O U R T R A N S F OR M E D PO RT F O L I O
28
Healthcare
8%
Packaging
24%
Consumer
20%
Building &
Construction
10%
Industrial
15%
Transportation
9%
Energy
4% Telecom.
4%
2022 PF
$3.65B
sales
Defense
6%
Leading Positions Sustainable SolutionsDiversified IndustriesSpecialty Formulator
(1) 2022 Pro forma for the acquisition of Avient Protective Materials
(2) 2020 Pro forma for the acquisition of Clariant Color
(1)(2)
(1)
$340M
$455M
$790M
2016 2018 2020PF 2022PF
$1,175M
P E E R C O M PA R I S O N S
AV I E N T I S A S SE T L I G H T
Capex / Revenue
2023E (%)
Avient Specialty
Formulators
Other Specialty /
Chemical Companies
Source: Peer data per Bloomberg as of February 13, 2023
Note: Avient reflects 2023 estimated revenue of $3,450 and estimated run-rate CAPEX of $110M.
30
3
2
3
3
4 4
3
4
5 5 5
6
7 7
A
vi
e
n
t
K
W
R
P
P
G
F
U
L
A
V
Y
R
P
M
F
M
C
H
U
N
H
X
L
C
E
E
C
L
A
S
H
S
C
L
E
M
N
F R E E C A S H F LOW C O N V E R S I O N
Source: Peer data per Bloomberg as of February 13, 2023
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/sites/default/files/2023-02/AVNT Q4 2022 Earnings Presentation.pdf
Pro Forma Financial Information
The Company acquired Avient Protective Materials (“Dyneema”) on September 1, 2022 (the “Acquisition Date”) and sold the Distribution segment on November 1, 2022.
GUIDANCE
DEBT / LEVERAGE R EDUCTION
• Completed sale of Distribution
and paid down $750M of debt
in November
• Strong free cash flow in fourth
quarter reduced leverage and
enabled paydown of additional
$200M of debt
• Fixed/Floating Debt Ratio 63/37
• Proven track record of
deleveraging following
acquisitions through consistent
free cash flow generation
$725 $725 $725
$575 $500 $400
$600
$525
$425
$650
$650
$650
$600
$2.40B
$2.20B
2030 Notes
2029 Term Loan
2026 Term Loan
2025 Notes
After Distribution
Divestiture
Year-End
4
Year-End
Leverage
3.8x 3.1x 2.9x
2023 Notes
After Avient
Protective Materials
Acquisition
$3.15B
20 22 TRA NSF OR MATI ONAL PORTFOLI O
ENHA NC EMENTS
5
EBITDA margins expanded
from 12% to 16%
Diversified end markets
with reduced exposure to
more cyclical industries
Dyneema®
Acquisition
$1.48B acquisition
strengthens composites
platform
Significantly improved
EBITDA margins $950M divestiture results
in 100% specialty sales
Strong exit multiple of 10x
TTM EBITDA despite
market volatility
Distribution
Divestiture
Improved
Portfolio
G ROW I NG C OM PO SI T ES P LAT F OR M
C O NT R I BU TI O NS TO S EM S EG ME NT
6
Note: 2022 is pro forma for Avient Protective Materials
2016 Sales 2022 Sales
Advanced
Composites
51%
$560M $1,300M
Advanced
Composites
9%
C O M P O S I T E S P O R T F O L I O
D Y N E E M A ® E X P A N D S O U R E N G I N E E R E D F I B E R S A N D T A P E S T E C H N O L O G Y
LFT Tapes Laminates/Panels Shapes Pultrusion Engineered Fibers
7
ADVA NC ED C OM POSI TES PERFORMA NCE
8 (1) Pro forma for the acquisition of Avient Protective Materials
Sales
$51
$84
$212
$668
2016 2018 2020 2022
$4
$10
$41
$169
2016 2018 2020 2022
EBITDA
(1) (1)
($ in millions)
PORTFOLIO EVOLUTION AND EPS EXPANSION
9
Adj.
$600 $592
2021 2022
$3.02 $3.04
2021 2022
FULL YEAR 2022 PERFORMANCE
( T O TA L C O M PA N Y P R O F O R M A )
15
Sales Adjusted EBITDA
$3,712 $3,653
2021 2022
- 2%
Adjusted EPS
- 1% + 1%
(in millions) (in millions)
(+ 4% excluding FX) (+ 5% excluding FX) (+ 9% excluding FX)
FULL YEAR 2022 SEGMENT PERFORMANCE
16
CAI
$2,402 $2,355
Sales
($ in millions)
$409 $402
EBITDA
SEM Pro Forma
$1,308 $1,300
Sales
$278 $272
EBITDA
(+ 4% excluding FX)
- 2% - 1%
(+ 5% excluding FX)
- 2%
(+ 4% excluding FX)
- 2%
(+ 2% excluding FX)
PRO FORMA FULL YEAR EPS BRIDGE
17
Pro Forma 2021 Adjusted EPS 3.02$
Foreign Currency (0.23)
Russia Import Sales (0.07)
Outdoor High Performance (0.13)
Color, Additives and Inks 0.18
Specialty Engineered Materials 0.24
Corporate Costs / Other 0.03
Pro Forma 2022 Adjusted EPS 3.04$
FULL YEAR EBITDA BRIDGE
( P R O F O R M A T O TA L C O M PA N Y )
18
$ millions
CAI:
Price / Mix 247
Inflation (176)
SEM:
Price / Mix 121
Inflation (77)
Net Price Benefit 115
Wage and Energy Inflation (47)
Clariant Color Integration Synergies 23
Incentives, Other Employee Costs 43
FX (34)
Full Year 2022 $592
Adjusted
EBITDA
Full Year 2021 $ 600
Demand (99)
Russia Import Sales (9) • Demand primarily impacted
by China lockdowns, 4th
quarter industrywide
destocking and declining
consumer sentiment
• Pricing outpaced inflation of
raw materials, wages and
energy
2 0 2 3 G U I D A N C E
$125
$530
Q1 FY
$0.55
$2.40
Q1 FY
2023 GUIDANCE
20
Sales Adjusted EBITDA
$845
$3,450
Q1 FY
Adjusted EPS
(in millions) (in millions)
CA SH FLOW / BALANCE SHEET
21
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Restructuring actions to
streamline operations and
improve profitability, primarily
in Europe
($ millions) 2023E
Cash Flow from Operating Activities 350$
Less:
Run-Rate CapEx (110)
CapEx for IT System Upgrade (25)
CapEx for Restructuring (15)
Total CapEx (150)
Free Cash Flow 200$
Adjusted EBITDA 530$
Net Debt / Adjusted EBITDA 2.9x
K E Y G R O W T H D R I V E R S
A N D T R A N S F O R M E D
P O R T F O L I O
GROW TH DR IVER S: PROV EN SUCC ESS
23 (1) Pro forma for the acquisition of Avient Protective Materials (APM)
COMPOSITES
$51
$84
$212
$668
2016 2018 2020 2022
Long Term Growth Rate
10%
Organic CAGR
10%
HEALTHCARE
$108 $113
$231
$293
2016 2018 2020 2022
Long Term Growth Rate
8-10%
Organic CAGR
11%
ASIA/EMERGING REGIONS
$265
$358
$726
$830
2016 2018 2020 2022
Long Term Growth Rate
5%
Organic CAGR
12%
$340
$455
$790
2016 2018 2020 2022
$1,175
SUSTAINABLE SOLUTIONS
Long Term Growth Rate
8-12%
Organic CAGR
11%
(1) (1)(1)
(Sales in $ millions)
#1 Color Formulator
Dyneema® - World’s Strongest
Fiber™
#1 in Composites applications
for outdoor high performance
#1 in Performance Inks
Customized solutions
140+ PhDs on staff
Rapid development of
innovative products
Extensive patent (2,500+)
portfolio
33% Vitality Index
Better-positioned toward stable,
high-growth end markets
Consumer, packaging,
healthcare and defense comprise
nearly 60% of sales
Agnostic to raw materials,
helping all customers achieve their
goals
Broad portfolio of diversified
sustainable solutions
90%+ of our innovation pipeline
invested in sustainable solutions
Long-term growth rate well
above GDP with expectations of
8-12%
L E V E R AG I N G O U R T R A N S F OR M E D PO RT F O L I O
24
Healthcare
8%
Packaging
24%
Consumer
20%
Building &
Construction
10%
Industrial
15%
Transportation
9%
Energy
4% Telecom.
4%
2022 PF
$3.65B
sales
Defense
6%
Leading Positions Sustainable SolutionsDiversified IndustriesSpecialty Formulator
(1) 2022 Pro forma for the acquisition of Avient Protective Materials
(2) 2020 Pro forma for the acquisition of Clariant Color
(1)(2)
(1)
$340M
$455M
$790M
2016 2018 2020PF 2022PF
$1,175M
P E E R C O M PA R I S O N S
AV I E N T I S A S SE T L I G H T
Capex / Revenue
2023E (%)
Avient Specialty
Formulators
Other Specialty /
Chemical Companies
Source: Peer data per Bloomberg as of February 13, 2023
Note: Avient reflects 2023 estimated revenue of $3,450 and estimated run-rate CAPEX of $110M.
27
3
2
3
3
4 4
3
4
5 5 5
6
7 7
A
vi
e
n
t
K
W
R
P
P
G
F
U
L
A
V
Y
R
P
M
F
M
C
H
U
N
H
X
L
C
E
E
C
L
A
S
H
S
C
L
E
M
N
F R E E C A S H F LOW C O N V E R S I O N
Source: Peer data per Bloomberg as of February 13, 2023
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/sitemap
Avient Completes Acquisition of DSM Protective Materials (Dyneema®)
Avient to Debut Dyneema® Fiber at JEC World 2023
Circular Solution for Dyneema® Recognized as Milipol Innovation Awards Finalist
https://www.avient.com/sites/default/files/AVNT Q1 2023 Earnings Press Release.pdf
Patterson added, “Last year, we substantially expanded our composite offerings with the
acquisition of Dyneema®, the world’s strongest fiber™, and I’m pleased to report integration is
progressing exceptionally well.
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/center-of-excellence/avient-us-and-canada
Dyneema® to Exhibit at the Functional Fabric Fair and Reveal Groundbreaking New Technology...
Dyneema® Announces Collaboration with Toyobo MC in Floating Offshore Wind Turbine Mooring Systems for Japan...
https://www.avient.com/news/syncure-xlpe-portfolio-avient-expands-dbdpe-free-flame-retardant-grades
Dyneema®, the world’s strongest fiber™, enables unmatched levels of performance and protection for end-use applications, including marine and sustainable infrastructure and outdoor sports
https://www.avient.com/investor-center/news/avient-announces-thirteenth-consecutive-annual-dividend-increase
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
https://www.avient.com/news/avient-launches-halogen-free-flame-retardant-tpe-grades-made-sustainable-raw-materials-usb-c-cable-jackets
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
https://www.avient.com/news/avient-features-sustainable-polymer-colorants-and-additives-specialty-engineered-materials-and-services-plastimagen-2023
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
https://www.avient.com/news/avient-unveil-new-specialized-and-sustainable-solutions-fakuma-2023
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