https://www.avient.com/sites/default/files/2020-10/investing-in-avient.pdf
It’s why we win.
11
474
644
924
107
147
208
467
616
872
2014 2018 2020PF
R&D / Technical Marketing Sales
Commercial Resources
+ 36%
+ 37%
+ 32%
+ 43%
+ 41%
+ 42%
Headcount figures are Pro forma for the sale of Designed Structures and Solutions (DSS) and Performance Products and Solutions (PP&S)
segments and the acquisition of the Clariant Masterbatch business. 2020PF data as of August 31, 2020.
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.
21
1.
Avient Total Enterprise Value Pro forma for acquisition of Clariant Masterbatch business and tax payments associated with the
PP&S divestiture per Company filings, resulting in a cash adjustment from the June 30, 2020 balance sheet of ~$1,520MM
2.
https://www.avient.com/sites/default/files/2023-11/AVNT November IR Presentation.pdf
PRIOR YEAR
$790
$710
2022 2023
$107
$112
2022 2023
Sales Adjusted EBITDA
$0.42
$0.47
2022 PF 2023
- 10% + 5% + 12%
Sales Adjusted EBITDA Adjusted EPS
16
$112
$500
$0.47
Q4 AND FULL YEAR 2023 GUIDANCE
$710
$3,130
Sales Adjusted EBITDA Adjusted EPS
17
(in millions) (in millions)
Guidance: Free Cash Flow
$180 $180
Prior Guidance Guidance
FREE CASH FLOW & INCREASED DIVIDEND
13th Consecutive Dividend Increase
0.16
0.26
0.42
0.58
0.79
0.85
0.99
1.03
2011 2013 2015 2017 2019 2021 2023 2024
S U S TAI NABI L I T Y DAY
RE CAP
SUSTAINABILITY AS A GROWTH DRIVERLONG-TERM REVENUE GROWTH DRIVERS
60%+
Key Growth
Drivers
Sustainable
Solutions
Composites, Healthcare,
Asia / LATAM
Overlap
Other
(GDP Growth)
Total Company Revenue
Growth Drivers Long-Term
Growth Rate
Sustainable Solutions 8–12%
Composites 8–10%
Healthcare 8–10%
Asia / LATAM 5%
Other (GDP growth) 0–2%
Avient 6%
SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH
8-12%
Long Term
Growth
50
90
2022 2030
Medical Plastics
Market Size
(in $Billions)
2020 2030
Recycled
Plastics
Virgin
Plastics
Growing Demand
for Recycled
Content
Avient Sustainable
Solutions
46
2023 2032
Global Offshore Annual
Wind Installations
(in Gigawatts)
Sources: McKinsey, Bloomberg, Grand View Research
SUSTAINABILITY TRENDS DRIVE
LONG-TERM GROWTH
21
• Transformative acquisitions
combined with divestitures of
more cyclical businesses have
improved margins over 400 bps
since 2018
• 20% long-term margin goal to
be driven by key growth drivers,
with sustainable solutions
playing a meaningful role
5.4%
11.5%
2006 2018 2023E Recovery Growth
Drivers
Strategic
Objective
20%+
+1%+
+3%+
ADJUSTED EBITDA MARGIN EXPANSION
22
• 6% annualized long-term sales growth leveraging
sustainable solutions, composites, healthcare, and
emerging regions
• Expand EBITDA margins to 20%
• Deliver annual EBITDA and EPS growth of
10% and 15%
• Maintain asset-light, 80% free cash flow conversion
profile and be valued as a specialty formulator
• Continue fostering our Great Place to Work® culture
CREATING A WORLD-CLASS
SUSTAINABLE ORGANIZATION
23
PEER COMPARISONS
AVIENT IS ASSET LIGHT
Capex / Revenue
2023E (%)
Avient Specialty
Other Specialty /
Note: Avient reflects 2023 estimated revenue of $3,130 and estimated run-rate CAPEX of $110M.
26
3.5
1.8
2.7 3.0 3.4 3.7
2.8
3.7
4.6 5.0
6.9 7.0
8.6
11.1
Av
ie
nt
PP
PM FM
C
N C
FREE CASH FLOW CONVERSION
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
Avient reflects 2023 adjusted EBITDA guidance of $500M and estimated run-rate CAPEX of $110M.
2023E (%)
27
78
89
84 82 80 77
88
81
76
70 69
60
54
(6)
Av
ie
nt
PP
PM FM
C C
Avient Specialty
Other Specialty /
MULTIPLE EXPANSION
Note: Avient reflects 2023 adjusted EBITDA guidance of $500M and closing share price of $31.18.
Avient 2011, 2018 and 2021 multiples reflect trailing 12 months EBITDA at December 31.
28
EV / 2023E EBITDA
6.5
8.5
11.0
8.9
12.0 11.9
10.9
9.9
8.2
16.3
13.8
11.9
9.6 9.5 9.5 9.2
7.7
11
21
O
ct
23
PM PP
FM
C C
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/news/avient-joint-study-borealis-reveals-wide-range-color-options-recycled-plastics
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News Center
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Avient Joint Study with Borealis Reveals Wide Range of Color Options for Recycled Plastics
The study also demonstrated that using Borcycle M grades along with Avient’s OnColor™ near-infrared (NIR) detectable colorants can produce a recyclable, neutral black which enables better automatic sorting for recycling.
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/2023-01/Maxxam REC Recycled Polyolefin Formulations Product Bulletin.pdf
Maxxam™ REC Recycled Polyolefin Formulations
Maxxam™ REC Recycled Polyolefins are formulated
with 25–100% recycled resin from post-industrial
recycled (PIR) and post-consumer recycled (PCR)
sources.
KEY CHARACTERISTICS
• Formulated with 25–100% recycled resin
from PIR & PCR sources
• Reduces waste and supports the circular
economy
• Achieves equivalent performance to
standard polyolefin formulations
• Can be recycled at end of life
• Provides good stiffness, durability,
impact resistance and UV stability
• Enables customized performance
characteristics depending on
application need
MARKETS AND APPLICATIONS
Maxxam REC Polyolefins are suitable for use across
many industries and applications where traditional
polyolefin materials are used, including:
• Transportation - HVAC systems, engine guards,
battery housings, flame retardant applications
• Industrial - Structural parts, furniture
• Consumer - Household appliances,
personal care items, packaging, office supplies,
food contact applications
• Electrical and Electronic – Housings, buttons,
junction boxes
SUSTAINABILITY BENEFITS
• Formulated with 25–100% recycled resin
from PIR and/or PCR sources
• Reduces waste and supports the circular
economy
• Reduces carbon footprint
• Can be recycled at end of life
PRODUCT BULLETIN
CHARACTERISTICS UNITS
Maxxam REC
RS5200-5029 C
BLACK X2
Maxxam REC
MX5200-5036
HS I BLACK
Maxxam REC
MX5200-5037
Maxxam REC
MX5200-5038
Maxxam REC
MX5200-5039
Filler/
Reinforcement – Unfilled Unfilled 20% Mineral 40% Mineral 30% Glass Fiber
Recycled
Content – 95% PCR 97% PIR 75% PIR 55% PIR 65% PIR
Density
(ISO 1183) g/ccm 0.93 0.95 1.09 1.28 1.15
Tensile Modulus
(ISO 527-1) MPa 1250 950 1500 2150 4250
Tensile Stress
(ISO 527-2) MPa 25 175 10 15 50
Tensile Strain Break (ISO
527-2) % >20 >80 >30 17 4.5
Charpy Notched
(ISO 179) kJ/m 3 8 5 4 11
TECHNICAL PERFORMANCE
CHARACTERISTICS UNITS
Maxxam REC
RS5200-5026
RS NHFR
BLACK 70
Maxxam REC
FR H8 V2
BLACK RG 70
Maxxam REC
L6 GF/30 H
BLACK T RG
70
Maxxam REC
MX5200-5027
RS HS
BLACK RG
Maxxam REC
MX5200-5028
RS HS
BLACK RG
Maxxam REC
C10 H-UV AS
EP RG
BLACK 70
Filler/
Reinforcement – 30% Glass Fiber Unfilled 30% Glass Fiber 30% Glass Fiber 40% Talcum Unfilled
Recycled Content – 37% PIR 90% PIR 55% PIR 35% PIR 50% PIR 25% PIR
Density
(ISO 1183) g/ccm 1.42 0.950 1.13 1.15 1.23 1.03
Tensile Modulus
(ISO 527-1) MPa 8250 1300 6100 6400 – 700
Tensile Stress
(ISO 527-2) MPa 71.0 30.0 70.0 70.0 28.0 15.0
Notched Izod
(ISO 180) kJ/m – 4.0 10 5.8 2.7 No Break
Flame Rating
@ 1.6mm thickness
(UL 94)
– V-0 V-2 HB HB HB HB
TECHNICAL PERFORMANCE
Copyright © 2023, Avient Corporation.
https://www.avient.com/news/sustainability-beyond-lightweighting-avient-features-recycled-content-composites-camx-2022
Homepage
//
News Center
//
Sustainability Beyond Lightweighting – Avient Features Recycled Content Composites at CAMX 2022
Available in unidirectional tapes and multi-axial laminates, this extends the Polystrand portfolio into recycled content solutions.
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/knowledge-base/article/eco-conscious-alternative-coloring-textiles?pname[]=20340
Remafin™ Fiber Colorants for PP
One way clothing and footwear producers are working to address these priorities is by using more recycled raw materials, such as recycled polyester from polyethylene terephthalate (PET) bottles, within their synthetic fibers.
Masterbatches for Spun-Dyed PP: Remafin™ Fiber Colorants
https://www.avient.com/knowledge-base/article/eco-conscious-alternative-coloring-textiles?ind[]=6596
Remafin™ Fiber Colorants for PP
One way clothing and footwear producers are working to address these priorities is by using more recycled raw materials, such as recycled polyester from polyethylene terephthalate (PET) bottles, within their synthetic fibers.
Masterbatches for Spun-Dyed PP: Remafin™ Fiber Colorants
https://www.avient.com/knowledge-base/article/eco-conscious-alternative-coloring-textiles?ind[]=21537
Remafin™ Fiber Colorants for PP
One way clothing and footwear producers are working to address these priorities is by using more recycled raw materials, such as recycled polyester from polyethylene terephthalate (PET) bottles, within their synthetic fibers.
Masterbatches for Spun-Dyed PP: Remafin™ Fiber Colorants
https://www.avient.com/knowledge-base/article/eco-conscious-alternative-coloring-textiles?sust[]=1139
Remafin™ Fiber Colorants for PP
One way clothing and footwear producers are working to address these priorities is by using more recycled raw materials, such as recycled polyester from polyethylene terephthalate (PET) bottles, within their synthetic fibers.
Masterbatches for Spun-Dyed PP: Remafin™ Fiber Colorants
https://www.avient.com/knowledge-base/article/eco-conscious-alternative-coloring-textiles?pname[]=20341
Remafin™ Fiber Colorants for PP
One way clothing and footwear producers are working to address these priorities is by using more recycled raw materials, such as recycled polyester from polyethylene terephthalate (PET) bottles, within their synthetic fibers.
Masterbatches for Spun-Dyed PP: Remafin™ Fiber Colorants