https://www.avient.com/sites/default/files/2021-09/avnt-q2-2021-earnings-presentation.pdf
Operating Income
$3,783
$4,300
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Previous
Guidance
Current
Guidance
$3,783
$4,650
$308
$410
$308
$430
$1.93
$2.80
$1.93
$3.00
(1) (1)(1)
(1)(1) (1)
$442
$457
$580
$1.74
$1.93
$3.00
FULL YEAR 2019 – 2021 ORGANIC GROWTH
16
Sales Adjusted EBITDA
$3,981
$3,783
$4,650
+ 17%
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(1)(1)
+ 31% + 72%
($ in millions)
2021E Adjusted EBITDA 580$
Free Cash Flow 280$
Total Debt 1,860
Less: Cash (755)
Net Debt 1,105$
2021E Net Debt / Adjusted EBITDA 1.9x
17
BALANCE SHEET
• Acquisition of Magna Colours completed on
July 1 – expands sustainable solutions
portfolio through water-based inks technology
• Deleveraging to 1.9x net debt to adjusted
EBITDA by the end of 2021
• Driven by record adjusted EBITDA
performance and strong free cash flow
generation from asset light business
• Future cash deployment: M&A, opportunistic
share repurchases and balance sheet /
continued leverage reduction
3.5x
2.7x
1.9x
Net Debt / Adjusted EBITDA
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
SUSTAINABILITY FOR A BETTER TOMORROW
• Revenue from sustainable solutions expected to
grow 14% 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
2016 2017 2018 2019 2020PF**
Bio-polymers Reduced Energy Use Human Health & Safety
Sustainable Infrastructure VOC Reduction Recycle Solutions
Eco-Conscious Lightweighting
Revenue From Sustainable Solutions* 2016-2020
$405M
$455M
*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 Masterbatch business
$340M
$550M
$790M
19
Key Updates
• Includes Clariant Masterbatch performance
• Increases disclosures and ESG data
• Provides performance updates on 2030 Sustainability Goals
• Commits to operational carbon neutrality in 2050 and 100%
renewable energy by 2050 (RE 100)
• Announces Avient’s participation in U.N.
Enable 100% of products manufactured for
packaging applications to be recyclable or
reusable.
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.
25
Avient reflects 2021 estimated EBITDA of $580M
OUR VALUATION VERSUS PEERS
Avient Specialty
Other
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
en
t
Median: 11.1xMedian: 14.6x
SUMMARY: WHY INVEST IN AVIENT?
https://www.avient.com/knowledge-base/article/boosting-rpet-quality-and-safety-packaging?psfam[]=22049
Recycle Solutions
Challenges in rPET Recycling
Solutions for rPET Recycling
https://www.avient.com/knowledge-base/article/boosting-rpet-quality-and-safety-packaging?pname[]=22232
Recycle Solutions
Challenges in rPET Recycling
Solutions for rPET Recycling
https://www.avient.com/knowledge-base/article/boosting-rpet-quality-and-safety-packaging?sust[]=1137
Recycle Solutions
Challenges in rPET Recycling
Solutions for rPET Recycling
https://www.avient.com/news/avient-brings-sustainable-innovation-npe-2024
Super Tough Nylon Formulations Added to Avient’s Recycled Content Portfolio
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/products/polymer-additives/barrier-and-scavenger-additives/colormatrix-amosorb-oxyloop-1
Recycling Enhancer O₂ Scavenging Additive
Recycle Solutions
EPBP bottle-to-bottle recyclability accredited
https://www.avient.com/company/sustainability/sustainable-solutions-portfolio
Recycle Solutions
Gravi-Tech™ REC Recycled Formulations
Remafin™ Fiber Colorants for PP
https://www.avient.com/news/avient-exhibits-new-bio-filled-polymers-and-sustainable-solutions-portfolio-fakuma-2021
Based on polymers such as polypropylene (PP), the new formulations also include a natural filler made from renewable plant sources that would otherwise go to waste.
reSound™ R recycled content thermoplastic elastomers (TPEs): Developed to help brand owners create more sustainable end-user products, these formulations utilize 9 to 83 percent recycled content from post-consumer recycled (PCR) and post-industrial recycled (PIR) sources.
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/news/two-new-polymer-solutions-avient-launching-battery-show-supporting-sustainability-battery-and-electric-vehicle-applications
Avient’s new reSound™ REC thermoplastic elastomers (TPEs) incorporate recycled content from polyvinyl butyral (PVB) recycled from broken vehicle windshields and laminated architectural glass to support a circular economy.
They can be injection molded or overmolded onto polypropylene (PP).
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/news/avient-unveil-new-specialized-and-sustainable-solutions-fakuma-2023
NEW Cesa™ Unify™ A4R - This latest addition to the Additives for Recycling portfolio of solutions is a polyolefin compatibilizer developed to enhance and support the use of recycled polyolefins.
It helps bring incompatible polymers, such as PP and PE, together by forming them into a homogenous polymer mixture that increases mechanical properties based on polymer modification (link to full press release above).
Unique technologies that improve the recyclability of products and enable recycled content to be incorporated, thus advancing a more circular economy