https://www.avient.com/news/avient-colorforward-experts-predict-pandemic-likely-influence-color-preferences-even-2022
This 16th edition of the annual color forecasting guide for the plastics industry marks its debut within Avient, which was formed this year from legacy businesses PolyOne and Clariant Masterbatch.
NOTE: On July 1, 2020, PolyOne and Clariant Masterbatches joined together as Avient, a new kind of materials company focused on conquering customer challenges and unlocking the potential for innovation and sustainability around the globe.
https://www.avient.com/products/polymer-colorants/solid-color-masterbatches
Cesa™ Antimosquito Masterbatch
Hiformer™ Liquid Masterbatches
Solid Color Masterbatches
https://www.avient.com/sites/default/files/2020-03/PolyOne_Website-12.19.pdf
Investor Day CLARIANT MASTERBATCH ACQUISITION DRIVES NEXT LEVEL SPECIALTY TRANSFORMATION December 2019 ACCELERATING GROWTH WITH SUSTAINABLE SOLUTIONS FORWARD-LOOKING STATEMENTS PolyOne Corporation 2 In this presentation, statements that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to: • The time required to consummate the proposed acquisitions described in this presentation; • The satisfaction or waiver of conditions in the purchase agreements for the proposed acquisitions; • Any material adverse changes in the business of Clariant’s Color and Additive Masterbatch business; • The ability to obtain required regulatory or other third-party approvals and consents and otherwise consummate the proposed acquisitions; • Our ability to achieve the strategic and other objectives relating to the proposed acquisitions, including any expected synergies; • Our ability to successfully integrate Clariant’s Color and Additive Masterbatch business and achieve the expected results of the acquisitions, including, without limitation, the acquisitions being accretive; • Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; • The effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks; • Changes in polymer consumption growth rates and laws and regulations regarding plastics in jurisdictions where we conduct business; • Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online; • Fluctuations in raw material prices, quality and supply, and in energy prices and supply; • Production outages or material costs associated with scheduled or unscheduled maintenance programs; • Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; • An inability to raise or sustain prices for products or services; • An ability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to acquisition and integration, working capital reductions, costs reductions and employee productivity goals; • Information systems failures and cyberattacks; and • Other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and changes in the rate of inflation.
S A F E T Y F I R S T PolyOne Corporation 7 Injuries per 100 Workers Spartech Acquisition 1.3 1.1 1.1 0.85 0.65 0.57 0.54 0.97 0.84 0.74 0.74 0.69 0.51 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 G R E A T P L A C E T O W O R K PolyOne Corporation 8 * Pro Forma for sale of DSS Operating Income % of Sales 2006 Q3 YTD 2019 Color, Additives & Inks 1.7% 15.5% Specialty Engineered Materials 1.1% 11.8% Distribution 2.6% 6.3% 2009 2010 2011 2012 2013 2014 2015 2016*2017* 2018 $2.43 P R O O F O F P E R F O R M A N C E C O N S E C U T I V E Y E A R S PolyOne Corporation 9 10 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.06 $2.21 A D J U S T E D E P S E X P A N S I O N 2018 2019E $1.65 $1.51 Pro Forma for sale of PP&S T R A N S F O R M A T I O N H E A D L I N E S PolyOne Corporation 10 C O M M O D I T Y T O S P E C I A L T Y T R A N S F O R M A T I O N PolyOne Corporation 11 • Volume driven, commodity production • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures • Shift to value-based selling & an innovative culture • New leadership team appointed • Implementation of four pillar strategy • Investment in commercial training and innovation • Faster growing, high margin focus • Accelerated growth with world class vitality index • Significant commercial resource additions • Expanded margins with specialty focus • Acquired strategic, bolt-on companies to expand technology offerings and improve geographic breadth Volume Value Transformation The Future 2006 - 2013 2013 – 20192000-2005 2006 - 2013 • Landmark portfolio transformation creates specialty growth company • Sustainability / mega- trends drive above market growth 2020 and Beyond F I T W I T H F O U R P I L L A R S T R A T E G Y PolyOne Corporation 12 Specialization • Innovation-led organization with heavy emphasis on R&D • World-class expertise in color formulation • Strong presence in specialty end markets including Consumer, Packaging and Healthcare Globalization • Diverse geographic portfolio with an established presence in every major region • Expands PolyOne’s ability to serve customers in key growth areas including India, China and Southeast Asia Operational Excellence • Extensive manufacturing footprint with 46 facilities • Organizational focus on optimizing supply chain to better serve customers • Color design expertise Commercial Excellence • Value-focused salesforce with vast experience marketing and commercializing specialty technologies • Diverse customer portfolio with established OEM’s People Experienced and talented associates with a winning mentality L E V E R A G I N G G L O B A L M E G A T R E N D S 13 Facilitate alternative energy solutions Light- weighting Reduce packaging materials Improve recyclability Reduce spread of infection T R A N S P O R T A T I O N P A C K A G I N G H E A L T H C A R EC O N S U M E R PolyOne Corporation E N D M A R K E T T R A N S F O R M A T I O N PolyOne Corporation 14 Building & Construction 5% 2006 2019E PF* 4% 12% 10% 18% 8% 20% 2006 2019E PF* Healthcare Consumer Packaging 50% 22% High Growth End Markets Percentage of Total Revenue 38% * 2019E Pro Forma for PP&S Divestiture and Clariant Color & Additive Masterbatch business E N D M A R K E T T R A N S F O R M A T I O N PolyOne Corporation 15 Packaging 8% Building & Construction 38% Wire & Cable 11% Industrial 10% Electrical & Electronic 7% 2006 2019E PF* Healthcare 4% Transportation 12% Consumer 18% Building & Construction 5% Wire & Cable 6% Industrial 12% Electrical & Electronic 5% Appliance 3% Textiles 6% Transportation 13% Healthcare 12% Packaging 20% Consumer 10% * 2019E Pro Forma for PP&S Divestiture and Clariant Color & Additive Masterbatch business C O M P L E M E N T A R Y G E O G R A P H I C P R E S E N C E PolyOne Corporation 16 United States 38% Europe 33% Asia 19% Canada 4% Latin America 6% United States 22% Europe 40% Asia & Middle East 31% Canada 1% Latin America 6% Color & Engineered Materials Clariant Color & Additive Masterbatch Business Net Sales by Geographic Region United States 31% Europe 36% Asia & Middle East 24% Canada 3% Latin America 6% Pro Forma Color & Engineered Materials 531 710 1,042 130 164 208 504 663 880 2014 2018 2019E PF* R&D / Technical Marketing Sales PolyOne Corporation 17 + 34% + 26% + 32% E X P A N S I O N O F COMMERCIAL RESOURCES D R I V I N G G R O W T H $2.9 $2.9 $3.5 2015 2016 2017 2018 2019E PF Total + 9% Organic + 5% Revenue in Billions Total + 10% Organic + 7%+ 47% + 27% + 33% $4.0 $3.2 2019E PF* * 2019E Pro Forma for PP&S Divestiture and Clariant Color & Additive Masterbatch business P R I O R A C Q U I S I T I O N S : P R O O F O F P E R F O R M A N C E PolyOne Corporation 18 Commercial Resources Operating Income ($ in millions) Operating Margins 243 340 At Acquisition 2018 $36 $96 At Acquisition 2018 11% 20% At Acquisition 2018 Established Acquisitions (> 7 years) + 40% + 165% + 900 bps U N I F I E D F O C U S O N S U S T A I N A B I L I T Y PolyOne Corporation 19 2006 - 2013 2013 – 2019 PEOPLE PRODUCTS PLANET PERFORMANCE PolyOne Clariant Color & Additive Masterbatch Business • Building mini-recycling plants to facilitate customer projects on design for recycling - CycleWorks • Uses packaging additives & colorants to improve recyclability and enhance automated sorting • Manufactures oxygen scavengers to extend shelf-life of perishable items and reduce material requirements • Combines UV-blocking additive colorants & other barriers to prevent spoilage and waste • Offers spin-dyeing solutions that use significantly less water than traditional methods, allowing for sustainable coloration of textiles • Produces infrared absorbing additives that reduce energy requirements for bottle manufacturing ($ in millions) PolyOne (Continuing Operations) Clariant Color & Additive Masterbatch Business Synergies New PolyOne 2019E Total Sales $2,860 $1,150 $4,010 2019E Adjusted EBITDA $310 $130 $60 $500 % Margin 10.8% 11.3% 12.5% 2019E CapEx $60 $85 % Sales 2.1% 2.1% 2019E Free Cash Flow $170 $250 2019E Adjusted EPS $1.65 $2.22 2019E PF Adjusted EPS $1.65 $2.50 P O L Y O N E + C L A R I A N T C O L O R & A D D I T I V E M A S T E R B A T C H B U S I N E S S PolyOne Corporation 20 (1) Excludes step-up of depreciation & amortization related to purchase accounting of transaction (1) $0.85/share O V E R 8 5 % O F A D J U S T E D E B I T D A F R O M S P E C I A L T Y PolyOne Corporation 21 46% 66% 0% 20% 40% 60% 80% 100% 2005 2010 2015 2019E PF % o f A d ju s te d E B IT D A * JV's Performance Products & Solutions Distribution Specialty 7% 87% * Adjusted EBITDA is EBITDA excluding corporate costs and special items ** 2019E Pro Forma for PP&S Divestiture and Clariant Color & Additive Masterbatch business acquisition with synergies Specialty EBITDA $14M $117M $273M $500M ** PolyOne Corporation 22 T R A N S A C T I O N O V E R V I E W • Expected mid-2020, subject to regulatory approvals and customary closing conditions Closing Conditions / Timing • Committed financing in place • Permanent financing to be combination of available cash on-hand, new debt and equity component to limit leverage • Equity issuance of $400 to $500MM • Target net leverage below 3.5x, 3.1x synergized, with intention to de-lever below 3.0x within 2 years PolyOne Corporation 23 • $1.45 B net purchase price • Represents 11.1x adjusted EBITDA (excluding synergies), 7.6x adjusted EBITDA (including synergies) • Pre-tax synergies of $60MM expected to be fully realized by the end of 2023 • Synergies realized from sourcing, operational, technology / commercial, and general administrative Transaction Value Synergies Financing Estimated Synergy Breakdown $60MM • Expect EBITDA synergies of $60MM – Proven integration expertise with a decade of acquisition experience – Administrative synergies reflect reduction of duplicative internal and third-party costs • Run rate synergies of $20MM by the end of Year 1 with $60MM achieved by the end of Year 3 • Significant additional opportunity for geographical expansion – Clariant Color & Additive Masterbatch business has complementary regional presence in key growth areas including India & Southeast Asia • Opportunity to accelerate growth with a combined portfolio of innovative solutions aligned with sustainability megatrends Sourcing 40% Operational 30% Administrative 30% PolyOne Corporation 24 S I G N I F I C A N T S Y N E R G Y O P P O R T U N I T I E S C A P I T A L S T R U C T U R E / L E V E R A G E PolyOne Corporation 25 At Close Year 1 Year 2 3.2x 3.5x 3.1x 2.6x Pro Forma with Synergies 2019E PF Two year leverage goal (1) Pro Forma Capitalization is for illustrative purposes only; amounts may vary depending on various market and other factors.
https://www.avient.com/sites/default/files/2021-04/avient-q4-earnings-and-2021-outlook-website.pdf
Unless otherwise stated, Operating Income, EBITDA and EPS figures included in this presentation are adjusted to exclude the impact of special items as defined in our quarterly earnings releases. $0.30 $0.52 2019 PF 2020 Q4 2020 ORGANIC PERFORMANCE 3 Sales $922 $997 2019 PF 2020 +8% Adjusted Operating Income Adjusted EPS $58 $80 2019 PF 2020 +38% +73% • Record 4th quarter sales, adjusted operating income and adjusted EPS performance • All segments delivered year-over-year sales and operating income growth, led by consumer and healthcare end markets • Clariant Masterbatch integration synergy capture ahead of schedule: $5 million realized in 2020 ($ in millions except EPS) (1) (1) (1) (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition Q4 2020 SEGMENT PERFORMANCE 4 Sales Operating Income $100 $100 $100 $922 $100 $100 $100 $997 Distribution CAI SEM Total 2019 2020 $178 $272 $490 $191 $305 $526 SEM Distribution CAI 2019PF 2020 +8% +7% +7% +12% $5 $5 $5 $58 $5 $5 $5 $80 Avient CAI SEM Total 2019 PF 2020 $17 $19 $40 $18 $30 $58 Distribution SEM CAI 2019PF 2020 +38% +45% +58% +6% (3) (3) ($ in millions) (1) (2) (1) Total company sales include intercompany sales eliminations (2) Total company reflects adjusted operating income and includes corporate costs (3) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition 2020 HIGHLIGHTS 5 • Completed transformational Clariant Masterbatch acquisition and created new brand name Avient • Increased pro forma adjusted EPS 11% from $1.74 to $1.93 as an essential supplier during the pandemic and due to growth in demand for consumer applications • Specialty Engineered Materials delivered record operating income on gains from composites • Achieved record free cash flow, increased dividend for 10th year in a row and delevered from 3.5x to 2.7x net debt to pro forma adjusted EBITDA • Culture is everything: Certified as a Great Place to Work® $133 $150 2019PF 2020PF 10% 23%8% 21% 4% 15% 2006 2020PF Healthcare Consumer Packaging Avient Portfolio Transformation 22% 59% CLARIANT MASTERBATCH: TRANSFORMATIONAL ACQUISITION 6 Clariant MB EBITDA Growth Purchase Price Multiple 10.8 9.6 6.5 2019PF 2020PF 2020PF w/ Full Synergies x x x • Acquisition of Clariant Masterbatch significantly expands presence in healthcare, packaging and consumer end markets • Strength of portfolio – 13% EBITDA growth as an essential supplier in COVID response and recovery • Acquisition completed on July 1, 2020 for $1.4 billion.
We will deliver for our stakeholders through multiple value creation levers—many of which are unique to Avient: o Demand for sustainable solutions, healthcare, and composites, together with Clariant Masterbatch revenue synergies, that will drive 2021 revenue growth of 8% and long-term growth in excess of GDP o Clariant Masterbatch cost synergy capture will result in significant near-term benefit In addition, we remain committed to increasing annual dividends in line with earnings growth and opportunistically buying back shares, all while remaining modestly levered.
Avient acquired the Clariant Masterbatch business (CMB) on July 1, 2020 (the “Acquisition Date”).
https://www.avient.com/sites/default/files/2021-02/avient-ir-presentation-goldman-sachs-and-morgan-stanley.pdf
Just a few months ago, we completed the acquisition of the Clariant Masterbatch business, the largest acquisition in the 20-year history of our company.
It’s in this spirit that we joined legacy PolyOne and the Clariant Masterbatch business, two complementary businesses, and formed a new one that we’ve named Avient.
Avient acquired the Clariant Masterbatch business (CMB) on July 1, 2020 (the “Acquisition Date”).
https://www.avient.com/sites/default/files/2020-10/investing-in-avient.pdf
Just a few months ago, we completed the acquisition of the Clariant Masterbatch business, the largest acquisition in the 20-year history of our company.
It’s in this spirit that we joined legacy PolyOne and the Clariant Masterbatch business, two complementary businesses, and formed a new one that we’ve named Avient.
Such is the case with the Clariant Masterbatch acquisition, where strong free cash flow will allow us to de-lever quickly. 19 AVIENT IS MODESTLY LEVERED 1.
https://www.avient.com/sites/default/files/2021-03/avient-march-ir-fermium_0.pdf
Just a few months ago, we completed the acquisition of the Clariant Masterbatch business, the largest acquisition in the 20-year history of our company.
It’s in this spirit that we joined legacy PolyOne and the Clariant Masterbatch business, two complementary businesses, and formed a new one that we’ve named Avient.
We will deliver for our stakeholders through multiple value creation levers—many of which are unique to Avient: o Demand for sustainable solutions, healthcare, and composites, together with Clariant Masterbatch revenue synergies, that will drive 2021 revenue growth of 8% and long-term growth in excess of GDP o Clariant Masterbatch cost synergy capture will result in significant near-term benefit In addition, we remain committed to increasing annual dividends in line with earnings growth and opportunistically buying back shares, all while remaining modestly levered.
https://www.avient.com/news/polyone-expands-automotive-engineered-polymer-portfolio-electriplast-conductive-long-fiber-technology
CLEVELAND - February 26, 2018 - PolyOne today announced it has partnered with Integral Technologies Inc. and its wholly owned subsidiary ElectriPlast Corp. to commercialize its patented, long fiber conductive ElectriPlast® material.
ElectriPlast Corp. is a leading technology innovator in conductive plastics with a broad intellectual property portfolio and deep application development expertise.
Integral Technologies Inc. and wholly owned subsidiary ElectriPlast Corp, engage in the discovery, development, and commercialization of electrically conductive plastics used in the production of industrial, commercial and consumer products.
https://www.avient.com/sites/default/files/2020-11/investing-in-avient_0.pdf
Just a few months ago, we completed the acquisition of the Clariant Masterbatch business, the largest acquisition in the 20-year history of our company.
It’s in this spirit that we joined legacy PolyOne and the Clariant Masterbatch business, two complementary businesses, and formed a new one that we’ve named Avient.
Such is the case with the Clariant Masterbatch acquisition, where strong free cash flow will allow us to de-lever quickly. 19 AVIENT IS MODESTLY LEVERED 1.
https://www.avient.com/sites/default/files/2021-05/avnt-first-quarter-2021-earnings-presentation.pdf
Avient acquired the Clariant Masterbatch business (CMB) on July 1, 2020 (the “Acquisition Date”).
Unless otherwise stated, Adjusted Operating Income, Adjusted EBITDA and Adjusted EPS figures included in this presentation exclude the impact of special items as defined in our quarterly earnings releases. $86 $123 2020PF 2021 $0.53 $0.89 2020PF 2021 Q1 2021 – ORGANIC PERFORMANCE (TOTAL COMPANY) 3 Sales Adjusted Operating Income $991 $1,162 2020PF 2021 + 17% Adjusted EPS + 43% + 68% (in millions) (in millions) (1) (1) (1) (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition Q1 2021 SEGMENT PERFORMANCE 4 CAI $536 $609 Sales ($ in millions) SEM Distribution $64 $89 Operating Income (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition +14% +39% $290 $363 Sales $19 $24 Operating Income +25% +26% (1) $185 $217 Sales $22 $34 Operating Income +17% +55% SPECIALTY EBITDA MARGIN EXPANSION 5 CAI (1) 2018-2020 financial information is pro forma to include a full year of Clariant Masterbatch business acquisition 15.3% 15.2% 16.2% 19.1% 2018 2019 2020 Q1 2021 14.8% 15.2% 17.6% 19.4% 2018 2019 2020 Q1 2021 (1) SEM • Continued portfolio transformation to high-growth end markets and sustainable solutions • Clariant Masterbatch synergy realization • Investments in composites and outdoor high performance applications drive growth and mix improvements CAI EBITDA MARGIN EXPANSION 6 Legacy CAI 18.9% 18.9% 21.0% 2019 2020 Q1 2021 Legacy Clariant MB 11.9% 13.8% 17.4% 2019 2020 Q1 2021 • Early synergy capture translating to the bottom line • Positive mix with growth in healthcare, consumer and packaging end-markets • World-class vitality index of 36% represents sales from products introduced in the last five years.
We will deliver for our stakeholders through multiple value creation levers—many of which are unique to Avient: o Demand for sustainable solutions, healthcare, and composites, together with Clariant Masterbatch revenue synergies, that will drive 2021 revenue growth of 14% and long-term growth in excess of GDP o Clariant Masterbatch cost synergy capture will result in significant near-term benefit In addition, we remain committed to increasing annual dividends in line with earnings growth and opportunistically buying back shares, all while remaining modestly levered.