https://www.avient.com/sites/default/files/2023-03/2023 Avient Bookmarked Proxy Statement - FINAL.pdf
Ultimately, we aim to create a world-class, sustainable organization.
Accounting Considerations.
If, in the opinion
of the Company’s auditors, this provision creates adverse accounting consequences for the
Company, it shall be considered null and void.
https://www.avient.com/investor-center/news/avient-provides-fourth-quarter-2020-updates
continued, "These results also reflect the strong cultural fit between legacy PolyOne and legacy Clariant Masterbatch associates who have come together to create
Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; costs incurred directly in relation to acquisitions or divestitures, including adjustments related to contingent consideration; employee separation costs resulting from personnel reduction programs, plant realignment costs, executive separation agreements; asset impairments; settlement gains or losses and mark-to-market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non- recurring items; and the effect of changes in accounting principles or other such laws or provisions affecting reported results.
https://www.avient.com/knowledge-base/article/strategies-manage-your-carbon-footprint
Examples of these emissions include greenhouse gases created through polymer production and equipment, on-site utilities, or transportation methods to the brand owner or original equipment manufacturer (OEM) in the value chain.
Amongst all of these activities in the value chain, the EPA states that the highest account of emissions derives from the transportation of goods (28%), electricity (24%), and manufacturing (12%).
https://www.avient.com/white-ink-tips
Creating a smooth print
To create a softer surface, many textile manufacturers are brushing fibers.
Creating a softer white print
https://www.avient.com/sites/default/files/2025-05/AVNT May Investor Presentation_w_non-GAAP_0.pdf
Use of non-GAAP measures This presentation includes the use of both GAAP (generally accepted accounting principles) and non-GAAP financial measures.
All Rights Reserved 2025 6 Intersecting secular trends and high growth markets with our technologies to create product platforms of scale Copyright © .
Play bigger and bolder in high growth markets and portfolios supported by secular trends to create product platforms of scale 2.
https://www.avient.com/sites/default/files/2021-04/avnt-fourth-quarter-2020-news-release.pdf
Patterson reflected on 2020 saying, “It was a historic year where we brought two global
leaders together to create an even stronger company – now known as Avient.
Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1)
Net income from continuing operations attributable to Avient shareholders $ 74.2 $ 0.81 $ 6.4 $ 0.08
Special items, after tax (Attachment 3) (26.7) (0.29) 19.9 0.26
Adjusted net income / EPS - excluding special items $ 47.5 $ 0.52 $ 26.3 $ 0.34
(1) Per share amounts may not recalculate from figures presented herein due to rounding
Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1)
Net income from continuing operations attributable to Avient shareholders $ 132.0 $ 1.46 $ 75.5 $ 0.97
Special items, after tax (Attachment 3) 24.8 0.27 55.8 0.72
Adjusted net income / EPS - excluding special items $ 156.8 1.73 $ 131.3 1.69
(1) Per share amounts may not recalculate from figures presented herein due to rounding
6
Attachment 2
Condensed Consolidated Statements of Income (Unaudited)
Three Months Ended
Year Ended
Sales $ 997.0 $ 658.6 $ 3,242.1 $ 2,862.7
Cost of sales 744.1 505.3 2,457.8 2,205.5
Gross margin 252.9 153.3 784.3 657.2
Selling and administrative expense 187.9 132.8 595.0 500.4
Operating income 65.0 20.5 189.3 156.8
Interest expense, net (19.3) (11.9) (74.6) (59.5)
Other income, net 11.7 10.7 24.3 12.1
Income from continuing operations before income taxes 57.4 19.3 139.0 109.4
Income tax benefit (expense) 17.3 (12.9) (5.2) (33.7)
Net income from continuing operations 74.7 6.4 133.8 75.7
Income (loss) from discontinued operations, net of income taxes 0.1 458.9 (0.4) 513.1
Net income 74.8 465.3 133.4 588.8
Net income attributable to noncontrolling interests (0.5) — (1.8) (0.2)
Net income attributable to Avient common shareholders $ 74.3 $ 465.3 $ 131.6 $ 588.6
Earnings per share attributable to Avient common shareholders - Basic:
Continuing operations $ 0.81 $ 0.08 $ 1.47 $ 0.98
Discontinued operations — 5.97 (0.01) 6.64
Total $ 0.81 $ 6.05 $ 1.46 $ 7.62
Earnings per share attributable to Avient common shareholders - Diluted:
Continuing operations $ 0.81 $ 0.08 $ 1.46 $ 0.97
Discontinued operations — 5.92 (0.01) 6.61
Total $ 0.81 $ 6.00 $ 1.45 $ 7.58
Cash dividends declared per share of common stock $ 0.2125 $ 0.2025 $ 0.8200 $ 0.7875
Weighted-average shares used to compute earnings per common share:
Basic 91.4 76.9 90.1 77.2
Diluted 92.1 77.5 90.6 77.7
7
Attachment 3
Summary of Special Items (Unaudited)
Special items (1)
Three Months Ended
Year Ended
Cost of sales:
Restructuring costs, including accelerated depreciation $ (1.8) $ — $ (4.3) $ 0.3
Environmental remediation costs (1.1) 0.3 (20.4) (10.1)
Reimbursement of previously incurred environmental costs — 0.5 8.7 4.5
Inventory fair market value step-up expense 1.2 — (9.3) (2.0)
Impact on cost of sales (1.7) 0.8 (25.3) (7.3)
Selling and administrative expense:
Restructuring, legal and other (13.0) (4.4) (22.5) (18.6)
Acquisition earn-out adjustments 1.5 (15.7) (1.0) (36.4)
Acquisition related costs (1.4) (5.3) (24.9) (9.4)
Impact on selling and administrative expense (12.9) (25.4) (48.4) (64.4)
Impact on operating income (14.6) (24.6) (73.7) (71.7)
Costs related to committed financing in interest expense, net — — (10.1) —
Other income, net 0.1 0.1 0.4 0.5
Pension settlement/curtailment gains and mark-to-market adjustment 10.3 9.5 17.2 9.5
Impact on income from continuing operations before income taxes (4.2) (15.0) (66.2) (61.7)
Income tax benefit (expense) on above special items (1.3) (0.4) 14.1 11.1
Tax adjustments(2) 32.2 (4.5) 27.3 (5.2)
Impact of special items on net income from continuing operations
attributable to Avient Shareholders $ 26.7 $ (19.9) $ (24.8) $ (55.8)
Diluted earnings per common share impact of special items on net income
from continuing operations attributable to Avient shareholders $ 0.29 $ (0.26) $ (0.27) $ (0.72)
Weighted average shares used to compute adjusted earnings per share:
Diluted 92.1 77.5 90.6 77.7
(1) Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt
extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel
reduction programs, plant realignment costs, executive separation agreements; asset impairments; settlement gains or losses and mark-to-
market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental
remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and
losses on the divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or
disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the
commencement of the performance period; one-time, non-recurring items; and the effect of changes in accounting principles or other such
laws or provisions affecting reported results
2) Tax adjustments include the net tax benefit/(expense) from one-time income tax items, adjustments to uncertain tax position reserves and
deferred income tax valuation allowances.
8
Attachment 4
Condensed Consolidated Balance Sheets (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 649.5 $ 864.7
Accounts receivable, net 516.6 330.0
Inventories, net 327.5 260.9
Other current assets 89.9 57.7
Total current assets 1,583.5 1,513.3
Property, net 694.9 407.4
Goodwill 1,308.1 685.7
Intangible assets, net 1,008.5 469.3
Operating lease assets, net 80.9 63.8
Other non-current assets 195.4 133.8
Total assets $ 4,871.3 $ 3,273.3
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term and current portion of long-term debt $ 18.6 $ 18.4
Accounts payable 471.7 287.7
Current operating lease obligations 25.1 21.0
Accrued expenses and other current liabilities 289.2 375.4
Total current liabilities 804.6 702.5
Non-current liabilities:
Long-term debt 1,854.0 1,210.9
Pension and other post-retirement benefits 115.0 56.6
Deferred income taxes 150.7 63.5
Non-current operating lease obligations 56.0 42.8
Other non-current liabilities 192.8 144.3
Total non-current liabilities 2,368.5 1,518.1
SHAREHOLDERS' EQUITY
Avient shareholders’ equity 1,683.6 1,051.9
Noncontrolling interest 14.6 0.8
Total equity 1,698.2 1,052.7
Total liabilities and equity $ 4,871.3 $ 3,273.3
9
Attachment 5
Condensed Consolidated Statements of Cash Flows (Unaudited)
Year Ended
2020 2019
Operating activities
Net income $ 133.4 $ 588.8
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of business, net of tax — (457.7)
Depreciation and amortization 111.8 87.5
Accelerated depreciation and fixed asset charges associated with restructuring activities 3.2 —
Deferred income tax benefit (1.1) (3.2)
Share-based compensation expense 11.3 11.6
Changes in assets and liabilities, net of the effect of acquisitions:
(Increase) decrease in accounts receivable (4.6) 29.7
Decrease in inventories 40.2 40.2
Increase (decrease) in accounts payable 79.5 (22.7)
Increase (decrease) in pension and other post-retirement benefits 30.7 (19.7)
Increase in post-acquisition earnout liabilities 1.0 36.4
(Decrease) increase in accrued expenses and other assets and liabilities - net (3.7) 9.9
Taxes paid on gain on sale of business (142.0) —
Payment of post-acquisition date earnout liability (38.1) —
Net cash provided by operating activities 221.6 300.8
Investing activities
Capital expenditures (63.7) (81.7)
Business acquisitions, net of cash acquired (1,380.2) (119.6)
Net proceeds from divestiture 7.1 761.8
Net proceeds from other assets 5.2 51.4
Net cash (used) provided by investing activities (1,431.6) 611.9
Financing activities
Debt offering proceeds 650.0 —
Borrowings under credit facilities — 963.4
Repayments under credit facilities — (1,083.9)
Purchase of common shares for treasury (22.4) (26.9)
Cash dividends paid (71.3) (60.3)
Repayment of other debt — (1.8)
Repayment of long-term debt (7.8) (6.5)
Payments on withholding tax on share awards (2.3) (2.1)
Debt financing costs (9.5) (0.2)
Equity offering proceeds, net of underwriting discount and issuance costs 496.1 —
Payment of acquisition date earnout liability (50.8) —
Net cash provided (used) by financing activities 982.0 (218.3)
Effect of exchange rate changes on cash 12.8 (0.6)
(Decrease) increase in cash and cash equivalents (215.2) 693.8
Cash and cash equivalents at beginning of year 864.7 170.9
Cash and cash equivalents at end of year $ 649.5 $ 864.7
10
Attachment 6
Business Segment Operations (Unaudited)
Operating income at the segment level does not include: special items as defined in Attachment 3; corporate general and
administration costs that are not allocated to segments; intersegment sales and profit eliminations; share-based compensation
costs; and certain other items that are not included in the measure of segment profit and loss that is reported to and reviewed
by the chief operating decision maker.
https://www.avient.com/sites/default/files/2019-12/Fermium_IR_Deck_12.16.19_for_Website.pdf
USE OF
NON-GAAP
MEASURES
PolyOne Corporation 3
• This presentation includes the use of both GAAP (generally accepted
accounting principles) and non-GAAP financial measures.
Adjusted EPS attributable to PolyOne common shareholders is calculated as follows:
2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018
Net income from continuing operations attributable to
PolyOne common shareholders $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6 $ 166.4 $ 173.5 $ 161.1
Joint venture equity earnings, after tax (19.0) (14.7) (3.7) — — — — — — —
Special items, before tax(1) (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 23.8 32.9 59.5
Special items, tax adjustments(1) (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (15.9) (24.8) (25.3)
Adjusted net income from continuing operations
attributable to PolyOne common shareholders $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 174.3 $ 181.6 $ 195.3
Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1 80.4
Adjusted EPS attributable to PolyOne common
shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.06 $ 2.21 $ 2.43
* Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principle, discontinued operations or the related resegmentation
1) Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; costs incurred directly in relation to acquisitions or divestitures, including adjustments related to
contingent consideration; employee separation costs resulting from personnel reduction programs, plant realignment costs, executive separation agreements; asset impairments; mark-to-market adjustments associated with actuarial gains and losses on pension
and other post-retirement benefit plans; environmental remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and
equity investments; gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non-
recurring items; and the effect of changes in accounting principles or other such laws or provisions affecting reported results.
https://www.avient.com/sites/default/files/2021-03/avient-march-ir-fermium_0.pdf
Use of Non-GAAP Measures
This presentation includes the use of both GAAP (generally accepted accounting principles) and non-GAAP financial measures.
OUR STRATEGY
Specialization
Differentiates us through unique value-creating offerings to our customers.
We create value for our stakeholders and we love to win.
https://www.avient.com/sites/default/files/2020-11/investing-in-avient_0.pdf
Use of Non-GAAP Measures
This presentation includes the use of both GAAP (generally accepted accounting principles) and non-GAAP financial measures.
OUR STRATEGY
Specialization
Differentiates us through unique value-creating offerings to our customers.
We create value for our stakeholders and we love to win.
https://www.avient.com/sites/default/files/2020-10/investing-in-avient.pdf
Use of Non-GAAP Measures
This presentation includes the use of both GAAP (generally accepted accounting principles) and non-GAAP financial measures.
OUR STRATEGY
Specialization
Differentiates us through unique value-creating offerings to our customers.
We create value for our stakeholders and we love to win.