https://www.avient.com/sites/default/files/2023-08/AVNT August IR Presentation w NonGAAP Recs%5B40%5D.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
• 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 laws and regulations regarding plastics in jurisdictions where we conduct business;
• 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;
• Our ability to achieve strategic objectives and successfully integrate acquisitions, including Avient Protective Materials (APM);
• An inability to raise or sustain prices for products or services;
• Our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends;
• Information systems failures and cyberattacks;
• Amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions; and
• Other factors affecting our business beyond our control, including without limitation, changes in the general economy, changes in interest rates, changes in the rate of inflation and any recessionary conditions
Use of Non-GAAP Measures
This presentation includes the use of both GAAP (generally accepted accounting principles) and non-GAAP financial measures.
GUIDANCE
12
15.4%
15.9%
Adjusted EBITDA Margin %
Better-than-expected margins
driven by:
• Favorable mix - strong
demand for composite
applications
• Raw material deflation
Q2 EBITDA BRIDGE
13
($ millions)
CAI:
Price / Mix 7)
Deflation 11)
SEM:
Price / Mix 2)
Deflation 6)
Net Price Benefit 26)
Wage and Energy Inflation (10)
Cost Reductions 13)
FX (2)
Q2 2023 Actual $131)
Adjusted
EBITDA
Q2 2022 Pro Forma $ 172)
Demand (68) • Demand conditions vs.
expectations:
LATAM
• Net price benefit remains greater
than wage and energy inflation
• Clariant synergies and reduced
administrative costs
Q2 2023 SEQUENTIAL SALES BY REGION
Q 2 2 0 2 3 v s .
Q 1 2 0 2 3
-8%
+6%
-1%
Flat
14
Total Avient -2.6%
2023 G U IDA N CE
$128
$525
$0.56
$2.40
2023 GUIDANCE
16
$800
$3,280
Sales Adjusted EBITDA Adjusted EPS
(in millions) (in millions)
17
• Focused on working capital
management, restructuring
actions to streamline
operations
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Preserve Free Cash Flow to
maintain net leverage
CASH FLOW / LEVERAGE
($ millions) 2023E
Cash Flow from Operating Activities 320$
Less: CapEx (140)
Free Cash Flow 180$
Adjusted EBITDA 525$
Net Debt / Adjusted EBITDA 3.0x
SUSTAINABILITY AS A GROWTH DRIVER
18
LONG-TERM REVENUE GROWTH DRIVERS
Revenue From Sustainable Solutions* 2016-2022
$340M
$405M
$455M
$550M
$790M
$915M
2016 2017 2018 2019 2020PF** 2021 2022PF***
$1,175M
*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 Color business
***2022 is Pro Forma for the acquisition of Avient Protective Materials and the divestiture of Distribution
60%+
Key Growth
Drivers
Sustainable
Solutions
Composites, Healthcare,
Asia / LATAM
Overlap
Other
(GDP Growth)
Total Company Revenue
SUSTAINABILITY REPORT
2022
• Provides progress on 2030 goals
• Reaffirms commitment to U.N.
https://www.avient.com/sites/default/files/2023-07/AVNT Q2 2023 Earnings Presentation%5B70%5D.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
• 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 laws and regulations regarding plastics in jurisdictions where we conduct business;
• 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;
• Our ability to achieve strategic objectives and successfully integrate acquisitions, including Avient Protective Materials (APM);
• An inability to raise or sustain prices for products or services;
• Our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends;
• Information systems failures and cyberattacks;
• Amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions; and
• Other factors affecting our business beyond our control, including without limitation, changes in the general economy, changes in interest rates, changes in the rate of inflation and any recessionary conditions
Use of Non-GAAP Measures
This presentation includes the use of both GAAP (generally accepted accounting principles) and non-GAAP financial measures.
GUIDANCE
8
15.4%
15.9%
Adjusted EBITDA Margin %
Better-than-expected margins
driven by:
• Favorable mix - strong
demand for composite
applications
• Raw material deflation
Q2 EBITDA BRIDGE
9
($ millions)
CAI:
Price / Mix 7)
Deflation 11)
SEM:
Price / Mix 2)
Deflation 6)
Net Price Benefit 26)
Wage and Energy Inflation (10)
Cost Reductions 13)
FX (2)
Q2 2023 Actual $131)
Adjusted
EBITDA
Q2 2022 Pro Forma $ 172)
Demand (68) • Demand conditions vs.
expectations:
LATAM
• Net price benefit remains greater
than wage and energy inflation
• Clariant synergies and reduced
administrative costs
Q2 2023 SEQUENTIAL SALES BY REGION
Q 2 2 0 2 3 v s .
Q 1 2 0 2 3
-8%
+6%
-1%
Flat
10
Total Avient -2.6%
2023 G U IDA N CE
$128
$525
$0.56
$2.40
2023 GUIDANCE
12
$800
$3,280
Sales Adjusted EBITDA Adjusted EPS
(in millions) (in millions)
13
• Focused on working capital
management, restructuring
actions to streamline
operations
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Preserve Free Cash Flow to
maintain net leverage
CASH FLOW / LEVERAGE
($ millions) 2023E
Cash Flow from Operating Activities 320$
Less: CapEx (140)
Free Cash Flow 180$
Adjusted EBITDA 525$
Net Debt / Adjusted EBITDA 3.0x
SUSTAINABILITY AS A GROWTH DRIVER
14
LONG-TERM REVENUE GROWTH DRIVERS
Revenue From Sustainable Solutions* 2016-2022
$340M
$405M
$455M
$550M
$790M
$915M
2016 2017 2018 2019 2020PF** 2021 2022PF***
$1,175M
*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 Color business
***2022 is Pro Forma for the acquisition of Avient Protective Materials and the divestiture of Distribution
60%+
Key Growth
Drivers
Sustainable
Solutions
Composites, Healthcare,
Asia / LATAM
Overlap
Other
(GDP Growth)
Total Company Revenue
SUSTAINABILITY REPORT
2022
• Provides progress on 2030 goals
• Reaffirms commitment to U.N.
https://www.avient.com/sites/default/files/2021-01/avient-switzerland-gmbh-published-commercial-register.pdf
Mitteilungen an die Gesellschafter erfolgen schriftlich oder mittels elektronischer
Datenübermittlung an die vom Gesellschafter angegebene Zustelladresse.
14.03.2005
04.02.2016
14.06.2016
25.11.2020
Ei Lö Besondere Tatbestände Ref Publikationsorgan
Abspaltung: Die Gesellschaft übernimmt von der "Clariant lnternational
AG" (CHE-106.515.013), in Muttenz, einen Teil des Vermögens.
Abspaltung: Die Gesellschaft überträgt die "Geschäftseinheit Additive" gemäss
Spaltungsvertrag vom 08.04.2020 mit Aktiven von CHF 1 16'032'305.00 und
Passiven (Fremdkapital) von CHF 16'032'305.00 auf die "Clariant lnternational
AG' (CHE-106.515.013), in Muttenz.
https://www.avient.com/news/advanced-technologies-and-sustainable-material-innovations-avient-debut-chinaplas-2024
The plastics industry is evolving rapidly to address the need for sustainable and circular solutions that improve recycling, product functionality, and manufacturability.
ColorForward™ 2025: the 19th annual edition of Avient’s acclaimed color trend forecast, illustrating a palette of 20 mid-tone colors in four major trend themes, predicted to elicit high consumer response and inspire brand owners and designers of plastic products
Avient is certified ACC Responsible Care®, a founding member of the Alliance to End Plastic Waste and certified Great Place to Work®.
https://www.avient.com/sites/default/files/2023-11/AVNT Q3 2023 Earnings Presentation - Website.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
• 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 laws and regulations regarding plastics in jurisdictions where we conduct business;
• 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;
• Our ability to achieve strategic objectives and successfully integrate acquisitions, including Avient Protective Materials (APM);
• An inability to raise or sustain prices for products or services;
• Our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends;
• Information systems failures and cyberattacks;
• Amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions; and
• Other factors affecting our business beyond our control, including without limitation, changes in the general economy, changes in interest rates, changes in the rate of inflation, any recessionary conditions, and terrorism or hostilities
Use of Non-GAAP Measures
This presentation includes the use of both GAAP (generally accepted accounting principles) and non-GAAP financial measures.
GUIDANCE
$800
$754
$128
$123
Sales Adjusted EBITDA
$0.56 $0.57
Adjusted EPS
9
• Demand impacted by destocking
and cautious customer sentiment
• Positive net price benefit:
o CAI - Pricing flat and raw
material deflation
o SEM - Pricing flat with
unfavorable mix related to
healthcare, more than offset
with raw material deflation
• Cost reductions driven by Clariant
synergies and reduced
administrative costs
Q3 EBITDA BRIDGE
($ millions)
CAI:
Price / Mix -)
Deflation 22)
SEM:
Price / Mix (6)
Deflation 13)
Net Price Benefit 29)
Cost Reductions 13)
Wage Inflation (8)
FX 1)
Q3 2023 Actual $ 123)
Adjusted
EBITDA
Q3 2022 Pro Forma $ 137)
Demand (49)
10
2023 G U I DAN CE
Q4 2023 GUIDANCE VS.
PRIOR YEAR
$790
$710
2022 2023
$107
$112
2022 2023
Sales Adjusted EBITDA
$0.42
$0.47
2022 PF 2023
Adjusted EPS
- 10% + 5% + 12%
Sales Adjusted EBITDA Adjusted EPS
12
$112
$500
$0.47
$2.30
Q4 AND FULL YEAR 2023 GUIDANCE
$710
$3,130
Sales Adjusted EBITDA Adjusted EPS
13
(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
14
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%
17
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
18
46
2023 2032
Global Offshore Annual
Wind Installations
(in Gigawatts)
Sources: McKinsey, Bloomberg, Grand View Research
SUSTAINABILITY TRENDS DRIVE
LONG-TERM GROWTH
18
• 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%
16.0%
2006 2018 2023E Recovery Growth
Drivers
Strategic
Objective
20%+
+1%+
+3%+
ADJUSTED EBITDA MARGIN EXPANSION
19
• 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
20
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/sitemap
PolyOne Signs Definitive Agreement to Acquire Clariant Color and Additive Masterbatch Business
PolyOne Completes Clariant Masterbatch Acquisition, Announces New Name: Avient Corporation
Avient and Plastic Bank Reuse Ocean-Bound Plastic for Luxury Caps and Closures
https://www.avient.com/news/new-details-specialty-sustainable-technologies-and-services-avient-featured-k-2022
Avient Joint Study with Borealis Reveals Wide Range of Color Options for Recycled Plastics
The K show is the world’s largest plastics industry event.
Avient is certified ACC Responsible Care®, a founding member of the Alliance to End Plastic Waste and certified Great Place to Work®.
https://www.avient.com/news/colornow-digital-service-avient-offers-immediate-color-matching-and-streamlined-color-design-process
SINGAPORE – October 12, 2023 – Avient Corporation, a premier provider of specialized and sustainable material solutions and services, today announced its ColorNow™ digital service is offering immediate color matching and an enhanced color design process for plastic manufacturers.
In particular, it addresses the differences between the optical properties of molded plastic parts and electronic displays, the different standards used in the electronic display industry versus the surface color industry, and the problem that feasible colors in molded plastic parts have a diverse range compared to those that can be shown by electronic displays.
Avient is certified ACC Responsible Care®, a founding member of the Alliance to End Plastic Waste and certified Great Place to Work®.
https://www.avient.com/news/avient-features-sustainable-polymer-colorants-and-additives-specialty-engineered-materials-and-services-plastimagen-2023
PCR grades are formulated from multiple types of recycled content, ranging from ocean plastics to food packaging.
The ColorWorks™ team will highlight ColorForward™, the annual color forecasting guide for the plastics industry.
Avient is certified ACC Responsible Care®, a founding member of the Alliance to End Plastic Waste and certified Great Place to Work®.
https://www.avient.com/news/avient-unveil-new-specialized-and-sustainable-solutions-fakuma-2023
FRIEDRICHSHAFEN, Germany – October 9, 2023 – At next week’s 28th Fakuma International Trade Fair for Plastics Processing, Avient Corporation will exhibit its latest innovations, providing sustainable and specialized material solutions for the plastics industry.
Fakuma, the world’s leading trade fair for plastic processing, takes place in Friedrichshafen, Germany, from October 17-21, 2023.
Avient is certified ACC Responsible Care®, a founding member of the Alliance to End Plastic Waste and certified Great Place to Work®.