https://www.avient.com/sites/default/files/2022-08/AVNT Aug 2022 Presentation - Jefferies.pdf
AVIENT: WHO WE ARE
38
21
9
34
• U.S. and Canada
• Latin America
• Europe, Middle East & Africa
• Asia
25,000+
CUSTOMERS
Headquartered in Avon Lake, OH
(Cleveland)
8,800+ employees
100+ manufacturing plants
Key Financial Data
2022E Sales $5.1 billion
2022E EBITDA $635 million
2022E EPS $3.50
>70%
ARE CUSTOMIZED SOLUTIONS
TO UNIQUE SPECIFICATIONS
of
sales
3
W H O W E A R E – V I S I O N , S T R AT E G Y, C U LT U R E
4
Avient Corporation (NYSE: AVNT) provides
specialized and sustainable material solutions that
transform customer challenges into opportunities,
bringing new products to life for a better world.
W H AT W E D O : M AT E R I A L S C I E N C E
5
CUSTOM
FORMULATION
SUSTAINABILITY FOR A BETTER TOMORROW
Revenue From Sustainable Solutions* 2016-2021
$310
205
140
80
75
45
40
20
$915M2021 Sales
($ in millions)
*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
Future Growth Revenue Assumptions From Sustainable Solutions: 8 - 12%
6
S E C O N D Q U A R T E R 2 0 2 2
R E S U L T S
$122
$134
2021 2022
$0.87
$0.98
2021 2022
Q2 2022 PERFORMANCE
( T O TA L C O M PA N Y )
8
Sales Adjusted Operating Income
$1,235
$1,302
2021 2022
+ 5%
Adjusted EPS
+ 10% + 13%
(in millions) (in millions)
(+ 10% excluding FX) (+ 16% excluding FX) (+ 20% excluding FX)
Q2 2022 SEGMENT PERFORMANCE
9
CAI
$624
$649
Sales
($ in millions)
SEM Distribution
$86
$94
Operating Income
+ 4% + 9%
$404
$443
Sales
$24
$27
Operating Income
+ 10% + 13%
(1)
$241 $244
Sales
$37 $37
Operating Income
+ 1% Flat
(+ 10% excluding FX) (+ 16% excluding FX) (+ 6% excluding FX) (+ 3% excluding FX)
Q2 2021 $1,235 $122
Sustainable Solutions 17 7% 7
Healthcare 23 14% 5
Composites (ex Outdoor High Performance) 10 20% 4
Growth in Asia / LATAM 5 3% 1
Other 69 11% 5
Sub-total $1,359 10% $144
Outdoor High Performance Impact (9) (5)
Wage Inflation and Overtime (7)
Other Supply Chain Costs (2)
Clariant Color Integration Synergies 7
Incentives, Other Employee Costs 4
FX (48) (7)
Q2 2022 $1,302 5% $134
Q2 2022 SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
10
Sales Growth Rate
Adjusted
Operating
Income$ millions
Adjusted
EBITDA
Q2 EBITDA BRIDGE
11
Price increases more than
offsets raw material and
supply chain impacts
Q2 2021 $ 159
Demand (29)
$ millions
CAI:
Price / Mix 87
Inflation (58)
SEM:
Price / Mix 36
Inflation (24)
Distribution:
Price / Mix 45
Inflation (41)
Net Price Benefit 45
Wage Inflation and Overtime (7)
Other Supply Chain Costs (2)
Clariant Color Integration Synergies 7
Incentives, Other Employee Costs 4
FX (7)
Q2 2022 $ 170
China Lockdowns / Russia Impact $ (14)
Outdoor High Performance (5)
Transportation (5)
12
Q2 '21 Adjusted EPS 0.87$
Color, Additives and Inks 0.11
Specialty Engineered Materials 0.01
Distribution 0.03
Corporate Costs 0.01
F/X (0.05)
Segment OI 0.11$
Interest Expense 0.03
Tax Rate (0.03)
Q2 '22 Adjusted EPS 0.98$
Q2 EPS BRIDGE
Key Updates
• Provided progress on 2030 Sustainability Goals
• Emphasized commitment to U.N.
Annual Purchases
RAW MATERIAL AND SUPPLY CHAIN UPDATE
Based on 2021 purchases, excludes Distribution business
D Y N E E M A A C Q U I S I T I O N
32
15x stronger than steel
Reduces weight by 30% vs. other solutions
Well-maintained global asset base poised to serve growing demand
• Purchase price of $1.48B represents 11.4x multiple of
2022 EBITDA
• Acquisition will expand Avient’s composites and fiber
portfolio with Dyneema®, the World’s Strongest Fiber™
• $415M sales and 30%+ EBITDA margins; Immediately
accretive to pro forma 2022 EPS, adding $0.35
• 1,300 patents globally, ~50% of sales patent protected
• 1,000+ employees across global production network and
dedicated technology centers
• Composites platform will increase from $261M to $680M in
revenue and from $49M to $180M in EBITDA Indicates Dyneema
® location
$175M
(42%)
$65M
(16%)
$175M
(42%)
2022E Sales By Region ($M)
(1) $0.35 EPS excludes intangible amortization
(2) Based on 2022 expected results
(1) (2)
(2)
F I T W I T H F O U R P I L L A R S T R AT E G Y
33
Specialization
• Innovation-led organization with
tremendous intellectual property value in
trademarks, patents and “know-how”
• Deep history of application development
and premium, leading brand with the
World’s Strongest FiberTM
Globalization
• Global customer base with an
established presence across all major
geographic regions
• Global technology centers complement
existing Composites applications and
expertise
Operational
Excellence
• Best-in-class safety performance
• Well-run and maintained asset base fit to
serve future growth
• Highly effective and reliable supply chain
with emphasis on optimizing service to
customers
Commercial
Excellence
• Deep customer relationships extend
across the value chain and drive ability
to grow
• Offer a full suite of services with an active
role in design, development and
commercialization
People
Experienced and
talented associates
with a passion for
safety, specialization
and winning
DY N E E M A ® OV E RV I E W
K E Y I N D U S T R I E S
PERSONAL PROTECTION
Military • Law Enforcement • First
Responders Body Armor • Helmets •
Vehicle Protection
$215M
MARINE & SUSTAINABLE
INFRASTRUCTURE
Towing / Mooring • Aquaculture •
Floating Wind • Offshore Cranes
$130M
CONSUMER
Consumer • Outdoor High Performance •
Safety Equipment
$70M
34 Figures reflect 2022 expected sales
MIFOverview Competition
Value chain &
Go-to-market
Strategy Innovation Financials
TECHNOLOGY
35
1,200 1,300
2,500
Avient Dyneema Combined
Patents
• True specialty business – the World’s Strongest Fiber™
• Deep history of application development with customers,
strongest in the industry
• The only UHMwPE (ultra-high molecular weight polyethylene)
fiber producer that is backward integrated
o Provides innovation advantage through control of all steps of the process
• Complementary with our existing reinforced film expertise
(PolyStrand) and engineered fiber presences (Fiber-Line)
WINNING PROPERTIES
Ultra high strength vs. weight Highly flexible
Floats on water Chemically inert; no smell/taste and non-toxic
High resistance to UV radiation Self-lubricating, with low friction
One-of-a-kind technology
®
FORMULATION PROCESS
36
• Like Avient, Dyneema® offers similar
core competencies around formulation
and material science
• Technology that combines polymers and
fibers to provide specialized, high
performing solutions for customers
• Design capabilities ensure that
applications are highly customized for
the specified end use
DYNEEMA ® IN THE VALUE CHAIN
37
UHMwPE
Fiber / Tapes
Military Personnel,
Law Enforcement
Heavy Marine,
Offshore Wind Energy
and Mooring,
Aquaculture
Outdoor,
Footwear, Apparel,
Inflatables
• Material Science
• Formulation
• Service
INTERMEDIATE MANUFACTURING
(CUSTOMERS) OEM / APPLICATION
DEMAND TRENDS
38
• Military spending and near-term demand for higher performing personal protection
products (like Dyneema®) expected to increase
o European NATO members annual defense spend expected to increase by up to 20%(1)
o Japan aiming to almost double defense spending over the next 5 years(2)
o Accelerated launch of next generation technology in North America
• Policy-driven demand for sustainable energy; growth in floating offshore wind
farms which require advanced, durable technology
o Offshore wind expected to grow at a CAGR of 32% with the level of annual installations
quadrupling over the next five years(3)
• Continued investment in aquaculture as a sustainable food source(4)
• Strong demand in outdoor high performance space across niche consumer
applications aligns with 10% growth assumption for Avient’s Composites portfolio
Sources:
(1) “Funding NATO”, NATO.int (April 1, 2022)
(2) “Japan Ruling Party Calls for Defense Spending Boost to 2% of GDP”, WSJ (April 21, 2022)
(3) “Global Wind Report 2021”, Global Wind Energy Council
(4) “Aquaculture Supports a Sustainable Earth”, NOAA Fisheries
39
A L I G N M E N T W I T H
S U S T A I N A B I L I T Y G O A L S
P RO D U C T S
AVIE NT ’S E XIS T ING COM P OS IT E S P ORT F OL IO
D I V E R S E C A P A B I L I T I E S A N D S O L U T I O N S S E R V I N G
M A N U F A C T U R E R S A N D O E M S
LFT Tapes Laminates/Panels Shapes Pultrusion Engineered Fibers
40
AV I E N T ’ S C O M P O S I T E S P O RT F O L I O
S A L E S A N D E B I T DA
41
$74 $84
$216 $212
$261
$5 $10
$32
$41
$49
$180
0
50
100
150
200
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
$550
$600
$650
$700
$750
2017 2018 2019 2020 2021 2022E
$680
($ in millions)
• Dyneema® acquisition will further
improve Composites EBITDA margins
to 26%
• Dyneema® will complement our
existing portfolio with deep formulation
expertise, innovative culture and
global commercial presence
• Composites will continue to be a key
growth driver to deliver future revenue
growth in excess of GDP
(1) Pro forma for the acquisition of Dyneema®
(1)
SEGMENT DATA
U.S. & Canada
50%
EMEA
25%
Asia
16%
Latin America
9%
2021 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
Consumer
23%
Packaging
19%
Industrial
16%
Building and
Construction
10%
Telecommunications
4%
Energy
2%
END MARKET REVENUE
(1) Total company sales and adjusted EBITDA of $4,819M and $581M, respectively, include intercompany sales eliminations and corporate costs
$2,402M
$409M
$919M
$164M
$1,631M
$94M
Sales EBITDA
Distribution
Specialty Engineered Materials
Color Additives and Inks
$581M$4,819M
(1)
Transportation
11%
Healthcare
15%
43
Packaging
34%
Consumer
21%
Healthcare
8%
Industrial
16%
Building &
Construction
10%
Transportation
9%
Energy
1% Telecommunications
1%
C O L O R , A D D I T I V E S & I N K S
2 0 2 1 R E V E N U E | $ 2 . 4 B I L L I O N
US & Canada
32%
EMEA
40%
Asia
21%
Latin America
7%
END MARKET REGION
44
All charts reflect 2021 financials
S P E C I A L T Y E N G I N E E R E D M A T E R I A L S
Consumer
27%
Healthcare
10%
Packaging
7%
Telecommunications
16%
Transportation
11%
Industrial
11%
Building &
Construction
11%
Energy
7%
2 0 2 1 R E V E N U E | $ 9 1 9 M I L L I O N
END MARKET
US & Canada
55%
EMEA
25%
Asia
20%
REGION
45
All charts reflect 2021 financials
D I S T R I B U T I O N
Healthcare
26%
Consumer
23%
Packaging
5%
Industrial
20%
Transportation
16%
Building and
Construction
8%
Energy
1%
Telecommunications
1%
US & Canada
80%
Asia
3%
Latin
America
17%
END MARKET REGION
K E Y S U P P L I E R S
2 0 2 1 R E V E N U E | $ 1 . 6 B I L L I O N
46
All charts reflect 2021 financials
T O T A L C O M P A N Y R E G I O N A L S A L E S
B Y E N D M A R K E T
Packaging
30%
Consumer
26%Healthcare
13%
Industrial
14%
Building &
Construction
5%
Telecommunications
2% Energy
2%
Asia
(16% of sales)
Transportation
8%
Packaging
32%
Consumer
13%
Healthcare
5%
Industrial
17%
Building &
Construction
12%
Telecommunications
5%
Energy
4%
EMEA
(25% of sales)
Transportation
12%
47
Consumer
25%
Healthcare
19%
Packaging
10%
Industrial
17%
Building &
Construction
10%
Telecommunications
4%
Energy
2%
US &
Canada
(50% of sales)
Transportation
13%
Packaging
38%
Consumer
33%
Healthcare
8%
Industrial
10%
Building &
Construction
5%
Telecommunications
1%
LATAM
(9% of sales)
Transportation
5%
All charts reflect 2021 financials
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/2024-02/AVNT Q4 2023 Earnings Presentation_For Website_with Non-GAAP.pdf
Microsoft PowerPoint - AVNT Q4 2023 Earnings Presentation v7
AVIENT CORPORATION
F O U R T H Q U A R T E R 2 0 2 3 R E S U L T S A N D
2 0 2 4 F I N A N C I A L G U I D A N C E
(NYSE: AVNT)
F E B R U A R Y 1 4 , 2 0 2 4
D I S C L A I M E R
Forward-Looking Statements
Certain statements contained in or incorporated by reference into this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
ASHISH KHANDPUR
P R E S I D E N T & C E O
4
5
PORTFOLIO TRANSFORMATION
5
7%
46%
66%
87%
100%
0%
20%
40%
60%
80%
100%
2005 2010 2015 2020 2023
%
o
f A
dj
us
te
d
E
B
IT
D
A
Commodity JVs Distribution Performance Products & Solutions Specialty Businesses
Adjusted EBITDA from Specialty Applications
SUSTAINABILITY AS A GROWTH DRIVER
7
LONG-TERM REVENUE GROWTH DRIVERS
Sustainable
Solutions
Composites, Healthcare,
Asia / LATAM
Overlap
Other
60%+
Key Growth
Drivers
Total Company Revenue
Growth Drivers Long-Term Growth Rate
Sustainable Solutions 8–12%
Composites 8–10%
Healthcare 8–10%
Asia / LATAM 5%
Other 0–2%
Avient 6%
END MARKET OBSERVATIONS
( % O F C O M PA N Y S A L E S )
ENERGY
5%
DEFENSE
7%
TELECOMMUNICATIONS
4%
HEALTHCARE
7%
8
TRANSPORTATION
10%
INDUSTRIAL
16%
BUILDING &
CONSTRUCTION 9%
CONSUMER
19%
PACKAGING
23%
9
REGIONAL OBSERVATIONS
( % O F C O M PA N Y S A L E S )
9
US & Canada
Latin America
EMEA
Asia
41%
36%
18%
5%
Q 4 2 0 2 3 R E S U L T S
Q4 2023 PERFORMANCE VS.
GUIDANCE
( T O TA L C O M PA N Y )
11
$710
$719
Guidance Actual
$112
$114
Guidance Actual
Sales Adjusted EBITDA
(in millions)
$0.47
$0.52
Guidance Actual
Adjusted EPS
(in millions)
13.5%
15.9%
2022 2023
Results vs.
https://www.avient.com/sites/default/files/2021-09/avnt-seaport-conference-presentation.pdf
W H O W E A R E – V I S I O N , S T R AT E G Y, C U LT U R E
3
Avient Corporation (NYSE: AVNT) provides
specialized and sustainable material solutions that
transform customer challenges into opportunities,
bringing new products to life for a better world.
W H Y AV I E N T W I N S
Deep Customer Relationships
& Application Know-How
Superior Design Capabilities
& Advanced Analytics
Global Footprint Strategically
Aligned to Serve Customers
We iterate fast and often.
39
22
9
34
• U.S. and Canada
• Latin America
• Europe, Middle East & Africa
• Asia
We produce locally, serve globally.
With the Clariant Masterbatch
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.
31
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
9.5
18.5
15.1 15.1
14.0
11.0 10.4
29.5
28.2
23.9
18.7
12.4 12.2
11.1
9.3 9.2 9.2
7.6 7.6
6.0
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Median: 11.1xMedian: 14.6x
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/2020-10/investing-in-avient.pdf
W H O W E A R E – V I S I O N , S T R AT E G Y, C U LT U R E
3
Avient Corporation (NYSE: AVNT) provides
specialized and sustainable material solutions that
transform customer challenges into opportunities,
bringing new products to life for a better world.
F U T U R E G ROW TH I N E XC E S S
O F G D P I S D R I V E N B Y:
Our company is positioned to sustainably grow at a rate that
exceeds GDP.
Consensus EBITDA of $460M per Bloomberg
Source: Capital IQ market data as of August 24, 2020
Median: 14.1x Median: 10.1x
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
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/2024-11/Cesa_ Slip Additives-baby diaper -Case Study Snapshot-CNSHA3OLH90098.pdf
Baby diaper manufactureR
B A B Y D I A P E R
M A N U FA C T U R E R
P P N O N W O V E N M U L T I L A Y E R S
• Provide slip additives with high concentrated content
• Offer products meeting customer FDA requirements
• Shorten supply lead time and reduce cost compared with
importing from EU
• Offered additives with high concentrated
content, which is unachievable for
competitors
• Provided regulatory support, significant cost
and time savings
• Compressed the timeline through on-site
color visualization, exploration, and
formulation of new colors by the expert
designer
Cesa Slip Additives
KEY REQUIREMENTS
WHY AVIENT?