https://www.avient.com/sites/default/files/resources/PolyOne%25202015%2520Annual%2520Report.pdf
ITEM 1.
McHenry, Illinois 1.
Committees: 1, 2
COMMITTEES
1.
https://www.avient.com/sites/default/files/resources/IR_Deck_11.4.19.pdf
B A I R D
G L O B A L I N D U S T R I A L
C O N F E R E N C E
N O V E M B E R 2 0 1 9
F O R W A R D L O O K I N G S T A T E M E N T S
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.
Leverage
PolyOne’s
global reach
Phase 1
Phase 2
Phase 3
18-20%
operating
margins
Invest in
commercial
resources
I N V E S T - T O - G R O W P R O O F O F P E R F O R M A N C E
PolyOne Corporation 23
Commercial
Resources
Operating
Income
($ in millions)
Operating
Margins
243
340
At Acquisition Today
$36
$96
At Acquisition Today
11%
20%
At Acquisition Today
Established Acquisitions
(> 7 years)
+ 40% + 165% + 900 bps
I N V E S T - T O - G R O W D R I V I N G T H E F U T U R E
PolyOne Corporation 24
Commercial
Resources
Operating
Income
($ in millions)
Operating
Margins
138
181
251
At Acquisition Today Goal
$23 $25
$70
At Acquisition Today Goal
7% 8%
18-20%
At Acquisition Today Goal
Recent Acquisitions
PolyOne Corporation 25
Average
Company Size
# of
Possibilities
Rationale
250
• Local to regional footprint
• Niche technology focus
• Concentrated customer base
$50M–$200M 150
• Regional to global footprint
• 1–3 specialty technologies
• Diversified customer base
>$200M 30
• Global footprint with local service
• Diverse specialty technologies
• Highly diversified customer &
market portfolio
S T R O N G P I P E L I N E
D R I V E N B Y F R A G M E N T E D M A R K E T
$0.16
$0.20
$0.24
$0.32
$0.40
$0.48
$0.54
$0.70
$0.78
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Cumulative Share Repurchases
(In millions)
$0
$150
$300
$450
$600
$750
$900
2011 2012 2013 2014 2015 2016 2017 2018 2019
YTD
$917M
R E T U R N I N G C A S H T O S H A R E H O L D E R S
O V E R $ 1 . 2 B I L L I O N S I N C E 2 0 1 1
PolyOne Corporation
Increasing Annual Dividend
26
$0.81
PolyOne Corporation 27
W H Y I N V E S T I N P O L Y O N E ?
T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y
Growing leadership position in attractive markets
Innovation, technology and service are differentiators
Capital management is a strength: Record-setting cash generation
to continue for years
Expand ROIC while increasing invested capital
Proven acquisition strategy with robust pipeline
Commercial investments are fueling momentum and generating
organic growth
S E R V I C E :
T H E T I M E L E S S
D I F F E R E N T I A T O R
PolyOne Corporation 28
T A L E N T D E V E L O P M E N T
PolyOne Corporation 29
Leadership Program Participants
2012
2013
2014
2015
47
0
86
2016
2019
125
169
412
Campus Hires
2008
2011
2014
2017
0
25
90
47
PolyOne LSS Blackbelts
2008
2011
2014
2019
0
67
247
147
2018 141
A U N I Q U E C U S T O M E R E X P E R I E N C E
Industrial
Design
I Q D E S I G N L A B S
PolyOne Corporation 30
Material
& Color
Expertise
Manufacturing
Expertise
3
14
2014 2018
Industrial designers
$0
$10M
2014 2018
$4M
$80M
2014 2018
Opportunity funnel New business revenue
L S S C U S T O M E R F I R S T
PolyOne Corporation 31
Customer Projects
Enables sales growth by building more intimate
customer relationships, giving us insight to customers’
needs, with a service that is not easily replicated
2014 2018
2 104
3 D P R I N T I N G
B R I N G I N G N E W I D E A S T O L I F E
PolyOne Corporation 32
Enables validation of fit and function
Shortens design cycle and time to market
Avoids tooling rework
Drives innovation
Delivers substantial customer value
PolyOne Corporation 33
From concept to production
M O N T H M O N T H
M O N T H M O N T H
M O N T H M O N T H
99.9%
Reduction in
turnaround time
Traditional Timeline
up to 24 weeks
PolyOne ColorMatrix
Select™
6 hours
Innovative system for processors and OEMs to develop colors in real time
Complete system that provides customers with the freedom to match,
prototype and produce color entirely within their own facility
C O L O R M A T R I X S E L E C T ™
“Being able to create color and produce parts in 1 day is unheard of in this industry”
-CEO, Industry Leader
I N N O V A T I N G W I T H P O L Y O N E
PolyOne Corporation 34
S E G M E N T H I G H L I G H T S
C O L O R , A D D I T I V E S & I N K S
E N D M A R K E T S & S O L U T I O N S
PolyOne Corporation 35
Solid
Colorants
Performance
Additives
Screen
Printing Inks
Liquid
Colorants
Packaging
28%
Industrial
14%
Textiles
13%
Wire & Cable
11%
Building & Construction
10%
Transportation
8%
Consumer
8%
Healthcare
5%
Appliances
2%
Electrical &
Electronic 1%
Operating Income & MarginRevenue by Region
C O L O R , A D D I T I V E S & I N K S
2 0 1 8 R E V E N U E | O V E R $ 1 B I L L I O N
$4
$25
$104
$159
0.9%
5.5%
12.2%
15.1%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
20
30
40
50
60
70
80
90
100
110
120
130
140
150
160
170
2005 2009 2013 2018
PolyOne Corporation 36
Europe
35%
United
States
45%
Asia
14%
Canada
1%
Mexico
3%
South
America
2%
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
E N D M A R K E T S & S O L U T I O N S *
PolyOne Corporation 37
Engineered
Formulations
Advanced
Composites
Thermoplastic
Elastomers
Consumer
22%
Transportation
16%
Wire & Cable
15%
Healthcare
11%
Industrial
9%
Packaging
7%
Appliance
3%
Building &
Construction 4%
Electrical &
Electronics
16%
*Pro Forma including Fiber-Line
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
Revenue by Region Operating Income & Margin
P R O F O R M A 2 0 1 8 R E V E N U E | $ 7 5 0 M I L L I O N *
PolyOne Corporation 38
$21
$57
$72
0.1%
5.1%
9.3%
11.2%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
20
30
40
50
60
70
80
90
2005 2009 2013 2018
Europe
28%
United
States
46%
Asia
24%
Canada
2%
*Pro Forma including Fiber-Line
D I S T R I B U T I O N
E N D M A R K E T S & S U P P L I E R S
PolyOne Corporation 39
Healthcare
27%
Transportation
22%
Industrial
18%
Consumer
12%
Appliance
6%
Electrical &
Electronics
5%
Building &
Construction
5%
Packaging
3%
Wire & Cable
2%
$20
$25
$63
$71
2.9%
4.0%
5.9%
5.6%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
15
25
35
45
55
65
75
2005 2009 2013 2018
Operating Income & Margin2018 Revenue | $1.3 Billion
http://www.polyone.com/Pages/VariationRoot.aspx
O V E R V I E W O F R A W M A T E R I A L P U R C H A S E S
PolyOne Corporation 40
Performance
Additives
13%
Polyethylene
11%
Pigments
9%
TiO2
8%
Styrenic Block
Copolymer 7%
Nylon
8%
Polypropylene
5%
Plasticizers
4%
Dyestuffs
3%
Other Raw
Materials
32%
$900 million of raw material purchases estimated in 2019 excluding Distribution business
Note: All figures exclude PolyOne Distribution business and divested PP&S business
T A R G E T E N D M A R K E T S &
A P P L I C A T I O N E X A M P L E S
PolyOne Corporation 41
Thermally Conductive
Technologies
Chemical Resistant
Technologies
Polymer Colorants
Elastomeric Grips and
Handles
Structural Composites
Antimicrobial Technologies
Anti-Counterfeiting
Technologies
Target End Markets… Healthcare
Catheter Technologies
Under-hood Components
Target End Markets… Automotive
Interior Structural
Components
Sound & Vibration
Management
Roof Systems
Air Management
Electronics and Cameras
Lighting
Exterior / Interior Trim
Braces & Brackets
Fasteners
Seals & Flaps
Target End Markets… Consumer
Thermally Conductive
Components
Polymer Colorants
Elastomeric Grips and
Handles
Structural Composite
Components
Oxygen Scavenger
Technologies
Laser Marking Additives
Antistatic Technologies
UV Light Barrier Technologies
Cap & Closure Colorants
Process Optimization
Technologies
Antioxidant Technologies
Density Modified
Technologies
Target End Markets… Packaging
Impart weight, sound and
metallic finish to caps and
closures for cosmetics and
spirits applications
Elevate quality and
prestige perceptions
among high-end
consumers
Eliminate time and cost
associated with secondary
operations and assembly
Luxury Packaging
GravitechTM Density Modified Polymers
Eliminate costs by
increasing pigment density
Enhance color
performance without
altering form and
formulation
Increase design
capabilities by reducing
weight and layer thickness
Optimize Color Usage
OnColorTM Super Concentrates
Inhibit microbial growth on
polymer surfaces
Enhance value or products
and devices
Highly versatile
concentrate with the
ability to be incorporated
into a wide variety of
products
Combat Bacteria Formation
WithStandTM Antimicrobial Technology
Durable, long-lasting products stand
up to the most aggressive
disinfectants
Minimize environmental stress
cracking and discoloration
One of the broadest medically
approved polymer and colorant
portfolios
Medical Device Housings
Chemically Resistant Engineered Polymers
Color & Design Services
Greater control of color
development and supply chain
Work across entire design
process from concept to
commercialization
Inspire creativity in the use of
polymer materials, colors, and
effects
Innovative brand differentiation
Faster development timelines
Outdoor Applications
Leading provider of high
performance specialty materials
for the recreational and sports &
leisure industry
Well positioned across all
segments to address market needs
Metal to Polymer Conversion
Lightweighting
Thermal Management
Impact Performance
ColorMatrix Fiber Colorant
Solutions
Proprietary advanced liquid color
formulations and equipment
enable greater efficiency and
productivity
Eliminates aqueous dyeing and its
associated wastewater treatment
Solid Color Concentrates
Extrusion-spun fibers colored via
solid masterbatch
Fiber Colorants
Robert W.
https://www.avient.com/sites/default/files/2024-01/AVNT January IR Presentation_w Non-Gaap Recs.pdf
Pro Forma Financial Information
The Company acquired Avient Protective Materials (“Dyneema”) on September 1, 2022 (the “Acquisition Date”) and sold the Distribution segment on November 1, 2022.
To provide comparable results, the company references “pro forma” financial
metrics, which include the business results of Avient Protective Materials for periods prior to the Acquisition Date, as if the transaction occurred on January 1, 2021 and reflect Distribution as a discontinued operation.
Avient 2011, 2018 and 2021 multiples reflect trailing 12 months EBITDA at December 31.
28
EV / 2023E EBITDA
6.5
8.5
11.0 10.8
16.1 15.5
14.1 14.0
10.3
21.0
19.0
14.3
12.1 11.8 11.7 11.5
9.7
20
11
20
18
20
21
20
23
R
P
M
A
V
Y
P
P
G
K
W
R
FU
L
E
C
L
H
X
L
S
C
L
C
E
FM
C
A
S
H
H
U
N
E
M
N
Avient Historic Multiple
Avient Specialty
Formulators
Other Specialty /
Chemical Companies
A P P E N D I X
30
Performance
Additives
16%
Pigments
12%
TiO2
10%
Dyestuffs
2%
Polyethylene
11%
Nylon
6%
Polypropylene
5%
Styrenic Block
Copolymer
5%
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
RA W MATERIAL BASKET
SEGMENT DATA
U.S. & Canada
40%
EMEA
37%
Asia
18%
Latin America
5%
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
Consumer
20%
Packaging
24%
Industrial
15%
Building and
Construction
10%
Telecommunications
4%
Energy
4%
Defense
6%
END MARKET REVENUE
$2,355M $402M
$1,300M $272M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$592M$3,653M
(1)
Transportation
9%
Healthcare
8%
32
(1) Total company sales and adjusted EBITDA of $3,653M and $592M, respectively, include intercompany sales eliminations and corporate costs
2 0 2 2 R E V E N U E | $ 2 . 4 B I L L I O N
US & Canada
34%
EMEA
38%
Asia
20%
Latin America
8%
END MARKET REGION
33
Packaging
34%
Consumer
21%
Healthcare
8%
Industrial
15%
Transportation
8%
Building &
Construction
11%
Telecommunications
1% Energy
2%
COLOR, ADDITIVES & INKS
2 0 2 2 P R O F O R M A R E V E N U E | $ 1 . 3 B I L L I O N
US & Canada
52%
EMEA
35%
Asia
13%
34
Packaging
5%
Consumer
19%
Healthcare
8%Industrial
16%
Transportation
10%
Telecommunications
10%
Energy
9% Defense
15%
Building &
Construction
8%
END MARKET REGION
SPECIALTY ENGINEERED MATERIALS
Packaging
32%
Consumer
27%
Healthcare
8%
Industrial
14%
Building &
Construction
5%
Telecommunications
3%
Energy
1% Defense
1%
Asia
(18% of sales)
Transportation
9%
2 0 2 2 P R O F O R M A AV I E N T R E G I O N A L S A L E S
Packaging
27%
Consumer
14%
Healthcare
5%
Industrial
17%
Building &
Construction
10%
Energy
5%
Defense
8%
EMEA
(37% of sales)Transportation
11%
Packaging
13%
Consumer
24%
Healthcare
12%
Industrial
15%
Building &
Construction
13%
Energy
5%
Defense
5%
US &
Canada
(40% of sales)
Transportation
7%
Packaging
56%
Consumer
23%
Healthcare
4%
Industrial
7%
Building &
Construction
4%
Telecommunications
1%
LATAM
(5% of sales)
Transportation
5%
Telecommunications
3%
Telecommunications
6%
35
B Y E N D M A R K E T
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/2024-10/Avient Announces Third Quarter 2024 Results.pdf
The company noted that third quarter 2024 GAAP EPS
includes $0.07 of special items (see Attachment 3) and $0.16 of intangible amortization
expense (see Attachment 1).
You are advised to consult any further
disclosures we make on related subjects in our reports on Form 10-Q, 8-K and 10-K that we
provide to the Securities and Exchange Commission.
5
Investor Relations Contact:
Giuseppe (Joe) Di Salvo
Vice President, Treasurer and Investor Relations
Avient Corporation
+1 440-930-1921
giuseppe.disalvo@avient.com
Media Contact:
Kyle G.
Rose
Vice President, Corporate Communications
Avient Corporation
+1 440-930-3162
kyle.rose@avient.com
6
Attachment 1
Avient Corporation
Summary of Condensed Consolidated Statements of Income (Unaudited)
(In millions, except per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024 2023 2024 2023
Sales $ 815.2 $ 753.7 $ 2,493.9 $ 2,423.8
Operating income 77.2 34.3 243.7 153.7
Net income from continuing operations attributable to Avient
shareholders 38.2 5.1 121.2 48.0
Diluted earnings per share from continuing operations attributable to
Avient shareholders $ 0.41 $ 0.06 $ 1.32 $ 0.52
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/2021-02/avient-ir-presentation-goldman-sachs-and-morgan-stanley.pdf
Microsoft PowerPoint - Avient February IR Meetings
AVIENT CORPORATION
(NYSE: AVNT)
F E B R U A R Y 1 7 - 1 8 , 2 0 2 1
I N V E S T O R M E E T I N G S
H O S T E D B Y
G O L D M A N S A C H S A N D
M O R G A N S T A N L E Y
D I S C L A I M E R
2
Forward-Looking Statements
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.
Purchase price multiple rapidly
declining on strength of business and
synergy capture
(1) (1)
(1) (1) (1)
(1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
($ in millions)
13
SEM
CAI
Avient
• Composites and Outdoor High
Performance applications drove
positive mix within SEM
• Clariant Masterbatch synergy
realization under way and
expected to drive further margin
expansion in 2021
• Portfolio transformation to high
growth end markets with focus on
sustainable solutions megatrend
10.1%
11.8%
2019PF 2020
(1)
(1)
EBITDA MARGIN EXPANSION
Distribution
6.3% 6.0%
15.2%
17.6%
11.1%
12.1%
2019PF 2020PF
14.5%
19.8%
13.5%
16.1%
6.4% 6.3%
15.2%
16.2%
(1) (1)
Full YearQ4
(2)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(2) Total company reflects adjusted EBITDA margins
SPOTLIGHT: COMPOSITES
14
• SEM delivers a record year in 2020 – 13%
operating income growth and over 200 bps
in margin expansion year-over-year
• Prior investments in composites platform
and outdoor high performance applications
paying off, resulting in substantial growth
over the last two years
SEM
Operating
Income
(OI % of Sales)
($ in millions)
$(0.1) $(1.0)
$2.2
$19.1
$26.8
2016 2017 2018 2019 2020
Composites
Performance
(Operating Income)
$83.7
$94.4
2019 2020
(11.2%)
(13.3%)
0.1 0.1
0.2
0.5
0.6
0.7
0.8
0.9
0.9 1.0
11 12 13 14 15 16 17 18 19 20
$19
$160
$338
2011 2019 2020
0.16
0.20
0.26
0.34
0.42
0.50
0.58
0.72
0.79 0.81
0.85
11 12 13 14 15 16 17 18 19 20 21E
FREE CASH FLOW AND CAPITAL ALLOCATION
15
Free Cash Flow Dividends Share Repurchases Deleveraging
3.5x
2.7x
2019PF 2020PF
Growing Dividend Cumulative Buybacks Net Leverage
$
B
n
$
p
e
r
sh
a
re
Cash Generation
(1) (1)
~$1Bn
REPURCHASED
OVER LAST 10 YEARS
~$350MM
PAID OVER LAST 10 YEARS
~$338MM 2.7x
NET LEVERAGE
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
GREAT PLACE TO WORK!
Avient acquired the Clariant Masterbatch business (CMB) on July 1, 2020 (the “Acquisition Date”).
https://www.avient.com/sites/default/files/2023-11/Cesa Clean Processing Usage Guide.pdf
GUIDELINES FOR USING CESA CLEAN ADDITIVES
• Cesa Clean works best when molded maintaining normal (injection)
pressure/shear
• For best results, Avient recommends a “Running Color Change”
which eliminates breaks in the molding cycle
• Since the Cesa Clean concentrate will expand, it is recommended
to reduce the shot size by 20%
• It is designed for use at a let-down ratio (LDR) of 3.0% or (33:1); however,
use rate can vary depending on the severity of the contamination but
typically is 2.0–4.0% (a use rate higher than 6.0% may not have any
positive affect on the cleaning performance)
• Using Cesa Clean as a routine part of your color change rotation will
allow faster changes and consume a minimal amount of raw material
- Note: If the manifold is not cleaned routinely, this process may be
more time consuming and additional material will be required
• It is best to process at your normal polymer processing temperatures
- For best performance, stock temperature should be at least 400°F
- If 400°F is achieved during the purging process, no additional
activation will occur during the reprocessing of regrind
- All parts produced during the “Running Purge Cycle” should be
captured as regrind, resulting in a scrap-free color change
- If using sequential gates, open and close all gates at the same time
while purging the tool
- If contamination appears to be coming from one gate, open and
close first, and for an extended period of time, to force more material
through this location
- When cleaning in this manner, pay close attention to shot size
- Parts containing the previous or new color plus any Cesa Clean
can be used as regrind
INTRODUCING CESA CLEAN TO YOUR PROCESS
Hand Blend
• Hand weigh enough of the Cesa Clean and
natural resin mix to equate to 3–5 times the
barrel capacity
• Use rate should be 3.0% or 33:1 for routine
cleaning
• For difficult-to-clean tooling, or tooling which
is not routinely cleaned, start at 4.0% or 25:1
• Note: Do not attempt to vacuum load more than
15 feet from source as stratification/separation
may occur
Volumetric Feeder
• Calibrate feeder to dispense 3.0% or 33:1 for
routine cleaning
• For difficult-to-clean tooling, or tooling which
is not routinely cleaned, start at 4.0% or 25:1
• This style of feeder is highly recommended for
at-the-throat metering of Cesa Clean
Blending Units
Most blenders have an extra bin for an additive
• Fill the additive bin with Cesa Clean
• Set blender to introduce the Cesa Clean at
2.0 to 4.0%
• Note: Do not air convey any further than 15 feet
as Cesa Clean has a high density and may separate
from the mix.
https://www.avient.com/sites/default/files/2023-03/AvientRY 2021 CDP Verification Opinion Declaration_07-26-22r%5B96%5D.pdf
Boundaries of the reporting company GHG emissions covered by the verification:
Operational Control
Global
Exclusions:
Fugitive refrigerants
Types of GHGs: CO2, N2O, CH4
GHG Emissions Statement:
Scope 1: 18,242 metric tons of CO2 equivalent
Scope 2 (Location-Based): 134,244 metric tons of CO2 equivalent
Scope 2 (Market-Based): 85,892 metric tons of CO2 equivalent
Scope 3:
o Category 3 – Fuel and energy-related activities (electricity transportation and distribution losses only):
8,777 metric tons of CO2 equivalent
Data and information supporting the Scope 1 and Scope 2 GHG emissions assertion were in most cases
historical in nature and in some cases were estimated.
Energy:
o Diesel Fuel Consumption: 7,268,012 kWh
o Natural Gas Fuel Consumption: 90,498,342 kWh
o Renewable Energy - Self Generated (solar): 252,779 kWh
o Renewable Energy - Self Generated (Wind): 2,399,531 kWh
o Electric Power: 339,815,274 kWh
Page 2
WATER RESOURCES • ENVIRONMENTAL SERVICES • HEALTH & SAFETY • CLIMATE CHANGE
Apex Companies, LLC • (800) 733-2739 • www.apexcos.com
o Renewable Energy Credit (REC): 121,411,062 kWh
o Renewable Power – Offsite: 27,119,749 kWh
Period covered by GHG emissions verification:
January 1, 2021 to December 31, 2021
GHG Reporting Protocols against which verification was conducted:
World Resources Institute (WRI)/World Business Council for Sustainable Development (WBCSD)
Greenhouse Gas Protocol, Corporate Accounting and Reporting Standard, Revised Edition (Scope 1 and 2)
and the GHG Protocol Scope 2 Guidance, an amendment to the GHG Protocol Corporate Standard
WRI/WBCSD Corporate Value Chain (Scope 3) Accounting and Reporting Standard
Verification Protocols used to conduct the verification:
ISO 14064-3 Second Edition 2019-04: Greenhouse gases - Part 3: Specification with guidance for the
verification and validation of greenhouse gas statements
Apex’s standard procedures and guidelines for external Assurance of Sustainability Reports and
International Standard on Assurance Engagements (ISAE) 3000 Revised, Assurance Engagements Other
than Audits or Reviews of Historical Financial Information (effective for assurance reports dated on or after
Dec. 15, 2015), issued by the International Auditing and Assurance Standards Board.
Verification Opinion:
Based on the verification process and procedures conducted to a limited assurance level of the GHG emissions
statement shown above, Apex found no evidence that the GHG emissions statement:
is not materially correct and is not a fair representation of the GHG emissions data and information; and
has not been prepared in accordance with the WRI/WBCSD GHG Protocol Corporate Accounting and
Reporting Standard (Scope 1 and 2), and WRI/WBCSD Greenhouse Gas Protocol Corporate Value Chain
Accounting and Reporting Standard (Scope 3).
https://www.avient.com/sites/default/files/2023-07/Avient_RY 2022 CDP Verification Opinion Declaration_07-24-23%5B30%5D.pdf
Boundaries of the reporting company GHG emissions covered by the verification:
Operational Control
Global
Exclusions:
Fugitive refrigerants
Mobile Combustion
Types of GHGs: CO2, N2O, CH4
GHG Emissions Statement:
Scope 1: 34,627 metric tons of CO2 equivalent
Scope 2 (Location-Based): 167,333 metric tons of CO2 equivalent
Scope 2 (Market-Based): 99,465 metric tons of CO2 equivalent
Scope 3:
o Category 3 – Fuel and energy-related activities: 62,049 metric tons of CO2 equivalent
Data and information supporting the Scope 1 and Scope 2 GHG emissions assertion were in most cases
historical in nature and in some cases were estimated.
Energy:
o Diesel Fuel Consumption: 4,754,671 kWh
o Natural Gas Fuel Consumption: 184,415,668 kWh
o Renewable Energy Consumed - Self Generated (solar): 260,378 kWh
o Renewable Energy Consumed - Self Generated (Wind): 2,554,186 kWh
o Grid Electricity Consumed: 436,400,546 kWh
Page 2
WATER RESOURCES • ENVIRONMENTAL SERVICES • INDUSTRIAL HYGIENE • SAFETY • SUSTAINABILITY
Apex Companies, LLC • (800) 733‐2739 • www.apexcos.com
o Renewable Energy Credits (REC) Purchased: 100,691,000 kWh
o Renewable Electricity Consumed – Offsite: 128,982,866 kWh
Period covered by GHG emissions verification:
January 1, 2022 to December 31, 2022
GHG Reporting Protocols against which verification was conducted:
World Resources Institute (WRI)/World Business Council for Sustainable Development (WBCSD)
Greenhouse Gas Protocol, Corporate Accounting and Reporting Standard, Revised Edition (Scope 1 and 2)
and the GHG Protocol Scope 2 Guidance, an amendment to the GHG Protocol Corporate Standard
WRI/WBCSD Corporate Value Chain (Scope 3) Accounting and Reporting Standard
Verification Protocols used to conduct the verification:
ISO 14064-3 Second Edition 2019-04: Greenhouse gases - Part 3: Specification with guidance for the
verification and validation of greenhouse gas statements
Apex’s standard procedures and guidelines for external Assurance of Sustainability Reports and
International Standard on Assurance Engagements (ISAE) 3000 Revised, Assurance Engagements Other
than Audits or Reviews of Historical Financial Information (effective for assurance reports dated on or after
Dec. 15, 2015), issued by the International Auditing and Assurance Standards Board.
Verification Opinion:
Based on the verification process and procedures conducted to a limited assurance level of the GHG emissions
statement shown above, Apex found no evidence that the GHG emissions statement:
is not materially correct and is not a fair representation of the GHG emissions data and information; and
has not been prepared in accordance with the WRI/WBCSD GHG Protocol Corporate Accounting and
Reporting Standard (Scope 1 and 2), and WRI/WBCSD Greenhouse Gas Protocol Corporate Value Chain
Accounting and Reporting Standard (Scope 3).
https://www.avient.com/sites/default/files/2021-02/2021-baird-sustainability-conference.pdf
Microsoft PowerPoint - 2021 Baird Sustainability Conference
AVIENT CORPORATION
(NYSE: AVNT)
B A I R D
S U S T A I N A B I L I T Y
C O N F E R E N C E
F E B R U A R Y 2 3 , 2 0 2 1
W A LT E R R I P P L E
V I C E P R E S I D E N T , S U S T A I N A B I L T Y
• 28 Years Industry Experience
• Bachelors of Chemistry, Texas A&M University
• Executive MBA, University of Michigan
• Former VP & General Manager, Global GLS
TPE Business
• 2+ years Vice President, Sustainability
Avient Corporation 2
S U S TA I NA B I L I T Y
A T A V I E N T
P E O P L E P R O D U C T S P L A N E T P E R F O R M A N C E
O U R M I S S I O N
E N A B L E O U R C U S T O M E R S ’ I N N O V A T I O N A N D S U S T A I N A B I L I T Y G O A L S
T H R O U G H W O R L D C L A S S P R O D U C T S A N D S E R V I C E S A N D E X C E L L E N C E I N
T H E F O U R C O R N E R S T O N E S O F :
Avient Corporation 3
Enable 100% of products manufactured for
packaging applications to be recyclable or
reusable.
Reduce Scope 1 & 2 greenhouse gas
emissions by 35%.
Develop and implement solutions to end plastic
waste while supporting AEPW $1.5B
investment in key initiatives.
2 0 3 0 S U STA I NA B I L I T Y TA RG E TS
Avient Corporation 5
P RO D U C T S
8 W A Y S W E H E L P C U S T O M E R S
B E M O R E S U S T A I N A B L E
T R E N D S I N F O C U S
Avient Corporation 6
RECYCLING /
CIRCULAR
ECONOMY
LIGHTWEIGHTING ECO-CONSCIOUS
S U S TA I NA B L E S O LU T I O N S F O R T H E C I RC U L A R
E C O N O M Y
Avient Corporation 7
OPTICA™ TONERS FOR PET
LACTRA™ SX LIGHT BLOCKING
ADDITIVE FOR PET
AMOSORB™ OXYGEN
SCAVENGER FOR PET
JOULE™ & SMARTHEAT™
INFRARED ABSORBER
ULTIMATE™ UV LIGHT BARRIER
CESA®-NATUR BIO-SOURCED
ADDITIVES
TRIPLE A™ ACETALDEHYDE
SCAVENGER FOR PET
IR SORTABLE BLACK FOR
RECYCLABLE PACKAGING
EZE™ SLIP AGENT
FOR PET
ONCOLOR™ NATURALS –
COLORANTS FOR RECYCLABLE
PACKAGING
RESOUND™ OM
THERMOPLASTIC ELASTOMERS
VERSAFLEX™ POST-
CONSUMER RECYCLED (PCR)
TPE FORMULATIONS
AV I E N T C YC L E WO R KS
I N N O V A T I O N C E N T E R T O A D V A N C E
T H E C I R C U L A R E C O N O M Y
• Laboratory mimics real-world circular
recycling in a research environment
• Conducts chemistry testing to improve
plastics recycling for customers
• Screening and evaluation of additive and
colorant systems during recycling
• Collaboration platform for customers and
value chain partners
Avient Corporation 8
Avient Corporation 9
AV I E N T E NA B L E S C U STO M E R S ’
C I RC U L A R E C O N O M Y G OA L S
C O L O R M A T R I X ™ P R O C E S S A I D & T O N E R F O R R E C Y C L E D P E T
L I G H T W E I G H T I NG
Avient Corporation 10
NYMAX™ NYLON
FORMULATIONS
HYDROCEROL® CHEMICAL
FOAMING AGENTS
POLYSTRAND™ TAPES
AND LAMINATES
COMPLĒT™ LFT
ENGINEERED RESINS
W H AT ’ S H A P P E N I N G A V I E N T S O L U T I O N S
PLASTICS ARE:
AV I E N T S O LU T I O N S E NA B L E L I G H T W E I G H T
DA S H B OA R D S K I N S
H Y D R O C E R O L ® F O A M I N G A G E N T S O L U T I O N S
Avient Corporation 11
E C O - C O N SC I O U S
Avient Corporation 12
ONCOLOR™ BRILLIANT
METALLIC COLORANTS
W H AT ’ S H A P P E N I N G
ONCOLOR™ WPC CAPSTOCK
TECHNOLOGY
ZODIAC™ AQUARIUS™
WATER BASED
SCREEN PRINTING INKS
MAGIQ™ FIBER
COLORANTS & ADDITIVES
SAFER & CLEANER
MATERIALS
RESOURCE
CONSERVATION
HUMAN HEALTH &
SAFETY
ECO-CONSCIOUS
ALTERNATIVES
A V I E N T S O L U T I O N S
AV I E N T E C O - C O NS C I O U S S O LU T I O N S I M P ROV E
FAC E M A S K P E R F O R M A N C E
Avient Corporation 13
M A G I Q ™ E L E C T R E T P L U S T E C H N O L O G Y
Improved
filtration efficiency
Protects
against aerosols &
bacteria particles
Increased
shelf-life
ENERGY INTENSITY
9%
DECREASE
WASTE INTENSITY
2%
DECREASE
WATER INTENSITY
20%
DECREASE
TOTAL CO2 EMISSIONS
29%
DECREASE
P L A N ET
K E Y P E R F O R M A N C E I N D I C A T O R S
2 0 1 6 - 2 0 1 9
56 ENERGY REDUCTION
PROJECTS SAVE
7400+
MT/CO2 ANNUALLY
PUNE, INDIAASSESSE, BELGIUM
Avient Corporation 14
• Avient is a founding member
• Cross value chain collaboration
• Driving breakthrough innovations
R E V E N U E F RO M S U S TA I N A B L E S O LU T I ON S
2016 2017 2018 2019 2020PF
VOC Reduction Reduced Energy Use
Bio-derived Content Eco-conscious
Renewable Energy Applications Recyclability
Reduced Material Requirements Lightweighting
$275M
$325M
$355M
$410M
$560M
(1) Proforma to include a full year of Clariant Masterbatch business acquisitionAvient Corporation 16
Revenue from sustainable solutions expected grow at an 8-12% CAGR into the future
(1)
THANK YOU
Avient Corporation 17
https://www.avient.com/sites/default/files/2021-06/avient-ir-presentation-may-2021-w-non-gaap-recs.pdf
Avient acquired the Clariant Masterbatch business (CMB) on July 1, 2020 (the “Acquisition Date”).
Reduce Scope 1 & 2 greenhouse gas
emissions by 35%.
Operating Income
$3,783
$4,100
2020PF 2021E
Adjusted EPS
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Previous
Guidance
Current
Guidance
$3,783
$4,300
2020PF 2021E
$308
$360
2020PF 2021E
$308
$410
2020PF 2021E
$1.93
$2.40
2020PF 2021E
$1.93
$2.80
2020PF 2021E
(1) (1)(1)
(1)(1) (1)
(in millions) (in millions)
$442
$457
$560
2019PF 2020PF 2021E
$1.74
$1.93
$2.80
2019PF 2020PF 2021E
FULL YEAR 2019 – 2021 ORGANIC GROWTH
( T O TA L C O M PA N Y )
23
Sales Adjusted EBITDA
$3,981
$3,783
$4,300
2019PF 2020PF 2021E
+ 8%
Adjusted EPS
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(1) (1)
(in millions) (in millions)
(1)(1)
+ 27% + 61%
(1) (1)
24
BA L A N C E S H E E T
• Deleveraging to 1.9x net debt to
adjusted EBITDA by the end of
2021
• Driven by record adjusted EBITDA
performance and strong free cash
flow generation from asset light
business
• Future cash deployment: M&A,
opportunistic share repurchases
and balance sheet / continued
leverage reduction
3.5x
2.7x
1.9x
2019PF 2020PF 2021E
Net Debt / Adjusted EBITDA
(1) (1)
($ in m illions)
2021E Adjusted EBITDA 560$
Free Cash Flow 275$
Total Debt 1,860
Less: Cash (800)
Net Debt 1,060$
2021E Net Debt / Adjusted EBITDA 1.9x
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
PEER COMPARISONS
25
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.