https://www.avient.com/sites/default/files/2021-03/avient-march-ir-fermium_0.pdf
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.
FUTURE GROWTH IN EXCESS
OF GDP IS DRIVEN BY:
Our company is positioned to sustainably grow at a rate that
exceeds GDP.
These investments also
consider our global footprint, and we are positioned very well and
strategically from a regional perspective.
8
Growth Drivers
2020
Revenue
($ Millions)
Long-Term
Growth Rate
Sustainable Solutions $ 560 8–12%
Healthcare 555 8–10%
Composites / 5G 212 10%
Growth in Emerging Regions 672 5%
Other (GDP growth) 1,784 2–3%
Pro Forma Avient $ 3,783 6.5%
2020 PE RF O RM AN CE
2020 HIGHLIGHTS
10
• 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
23%8%
21%
2006 2020PF
Avient Portfolio Transformation
22%
59%
CLARIANT MASTERBATCH:
TRANSFORMATIONAL ACQUISITION
11
Clariant MB EBITDA Growth
Purchase Price Multiple
10.8
9.6
6.5
2019PF 2020PF 2020PF w/ Full
Synergies
• 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.
https://www.avient.com/sites/default/files/2023-02/AVNT Q4 2022 Earnings Presentation.pdf
When showing constant dollar figures on GAAP and non-GAAP financial measures, the foreign exchange impact is calculated by using current foreign exchange rates and applying them to the prior period results.
$600 $592
$3.02 $3.04
FULL YEAR 2022 PERFORMANCE
(TOTAL COMPANY PRO FORMA)
15
Sales Adjusted EBITDA
$3,712 $3,653
-2%
Adjusted EPS
-1% + 1%
(in millions) (in millions)
(+4% excluding FX) (+5% excluding FX) (+9% excluding FX)
FULL YEAR 2022 SEGMENT PERFORMANCE
16
CAI
$2,402 $2,355
$409 $402
SEM Pro Forma
$1,308 $1,300
$278 $272
(+4% excluding FX)
- 2% -1%
(+5% excluding FX)
- 2%
(+4% excluding FX)
- 2%
(+2% excluding FX)
PRO FORMA FULL YEAR EPS BRIDGE
17
Pro Forma 2021 Adjusted EPS 3.02$
Foreign Currency (0.23)
Russia Import Sales (0.07)
Outdoor High Performance (0.13)
Color, Additives and Inks 0.18
Specialty Engineered Materials 0.24
Corporate Costs / Other 0.03
Pro Forma 2022 Adjusted EPS 3.04$
FULL YEAR EBITDA BRIDGE
(PRO FORMA TOTAL COMPANY)
18
$ millions
CAI:
Price / Mix 247
Inflation (176)
SEM:
Price / Mix 121
Inflation (77)
Net Price Benefit 115
Wage and Energy Inflation (47)
Clariant Color Integration Synergies 23
Incentives, Other Employee Costs 43
FX (34)
Full Year 2022 $592
Adjusted
Full Year 2021 $ 600
Demand (99)
Russia Import Sales (9) • Demand primarily impacted
by China lockdowns, 4th
quarter industrywide
destocking and declining
consumer sentiment
• Pricing outpaced inflation of
raw materials, wages and
energy
2023 G U IDA N CE
$125
$530
$0.55
$2.40
2023 GUIDANCE
20
Sales Adjusted EBITDA
$845
$3,450
Adjusted EPS
(in millions) (in millions)
CASH FLOW / BALANCE SHEET
21
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Restructuring actions to
streamline operations and
improve profitability, primarily
in Europe
($ millions) 2023E
Cash Flow from Operating Activities 350$
Less:
Run-Rate CapEx (110)
CapEx for IT System Upgrade (25)
CapEx for Restructuring (15)
Total CapEx (150)
Free Cash Flow 200$
Adjusted EBITDA 530$
Net Debt / Adjusted EBITDA 2.9x
K E Y G R O W T H D R I V E R S
A N D T R A N S F O R M E D
P O R T F O L I O
GROWTH DRIVERS: PROVEN SUCCESS
23 (1) Pro forma for the acquisition of Avient Protective Materials (APM)
COMPOSITES
$51
$84
$212
$668
HEALTHCARE
$108 $113
$231
$293
8-10%
ASIA/EMERGING REGIONS
$265
$358
$726
$830
12%
$340
$455
$790
$1,175
SUSTAINABLE SOLUTIONS
8-12%
(1) (1)(1)
(Sales in $ millions)
#1 Color Formulator
Dyneema® - World’s Strongest
Fiber™
#1 in Composites applications
for outdoor high performance
#1 in Performance Inks
Customized solutions
140+ PhDs on staff
Rapid development of
innovative products
Extensive patent (2,500+)
portfolio
33% Vitality Index
Better-positioned toward stable,
high-growth end markets
Consumer, packaging,
healthcare and defense comprise
nearly 60% of sales
Agnostic to raw materials,
helping all customers achieve their
goals
Broad portfolio of diversified
sustainable solutions
90%+ of our innovation pipeline
invested in sustainable solutions
Long-term growth rate well
above GDP with expectations of
8-12%
LEVERAGING OUR TRANSFORMED PORTFOLIO
24
Building &
4% Telecom.
2022 PF
$3.65B
sales
Leading Positions Sustainable SolutionsDiversified IndustriesSpecialty Formulator
(1) 2022 Pro forma for the acquisition of Avient Protective Materials
(2) 2020 Pro forma for the acquisition of Clariant Color
(1)(2)
$340M
$455M
$790M
2016 2018 2020PF 2022PF
$1,175M
P EE R C O M PAR IS O N S
AVIENT IS ASSET LIGHT
Capex / Revenue
2023E (%)
Avient Specialty
Other Specialty /
Note: Avient reflects 2023 estimated revenue of $3,450 and estimated run-rate CAPEX of $110M.
27
2
4 4
5 5 5
6
7 7
FREE CASH FLOW CONVERSION
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
Avient reflects 2023 adjusted EBITDA guidance of $530M and estimated run-rate CAPEX of $110M.
https://www.avient.com/investor-center/news/polyone-announces-pricing-650-million-575-senior-notes-due-2025
The notes will bear interest at an annual rate of 5.75% and will be issued at a price of 100% of their principal amount.
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 acquisitions; the satisfaction or waiver of conditions in the purchase agreements; any material adverse changes in Clariant's masterbatch business; the ability to consummate the acquisitions; our ability to achieve the strategic and other objectives relating to the acquisitions, including any expected synergies; our ability to successfully integrate Clariant's 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; the current and potential future impact of the COVID-19 pandemic on our business, results of operations, financial position or cash flows; changes in polymer consumption growth rates and 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; an inability to achieve the anticipated financial benefit from initiatives related to acquisition and integration, working capital reductions, costs reductions and employee productivity goals; our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends; 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.
https://www.avient.com/knowledge-base/case-study/auto-supplier-drives-exceptional-quality-productivity?ind[]=6601
Because it exhibits a higher flow rate than other SBC-based TPEs, OnFlex-S TPE reduces cycle times during injection molding, a feature that satisfies productivity objectives set by Jäger.
A high melt flow rate for the solution reduces packing and cooling time requirements to improve overall molding cycle times.
Faster processing = lower energy costs: Higher melt flow rates enable shorter injection molding cycles, resulting in reduced energy requirements.
https://www.avient.com/knowledge-base/case-study/auto-supplier-drives-exceptional-quality-productivity?rtype[]=1124
Because it exhibits a higher flow rate than other SBC-based TPEs, OnFlex-S TPE reduces cycle times during injection molding, a feature that satisfies productivity objectives set by Jäger.
A high melt flow rate for the solution reduces packing and cooling time requirements to improve overall molding cycle times.
Faster processing = lower energy costs: Higher melt flow rates enable shorter injection molding cycles, resulting in reduced energy requirements.
https://www.avient.com/industries/healthcare/labware-diagnostics/laboratory-equipment
Regardless of the equipment type, preventing cross-contamination is crucial for all equipment in contact with samples, including body samples (tissue, fluids) and microorganisms, to ensure accurate results.
https://www.avient.com/sites/default/files/2024-10/2024 AVNT Q3 Webcast Slides w appendix and non-GAAP.pdf
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.
When showing constant dollar figures on GAAP and non-GAAP financial measures, the foreign exchange impact is calculated by using current foreign exchange rates and applying them to the prior period results.
EBITDA
$130 million
+6%
(+7% ex FX)Net Sales
$815 million
+8%
(+8.5% ex FX)
Net Sales
$815 million
+8%
(+8.5% ex FX)
Q 3 2024 R ES U LT S
TOTAL COMPANY
$754
$815
$123
$130
(in millions)
$0.57
(in millions)
Adjusted EBITDA Adjusted EPS
5
+ 8%
(+8.5% excluding FX)
+ 6%
(+7% excluding FX)
+ 14%
(+16% excluding FX)
Sales
6
Q3 2024 RESULTS – ORGANIC REVENUE
GROWTH BY REGION VS PY
6
+9%
+5%
+11%
+27%
Avient ex.
https://www.avient.com/news/polyone-launches-new-high-performance-solutions-automotive-interiors
The new materials also provide up to 35% lower scrap rates by enhancing coating consistency, which reduces material bridging and part defects.
These new materials can improve our customers’ profitability by boosting production rates and lowering total system costs.”
VBX 3600 is formulated to meet strict OEM safety standards for instrument panels that require airbag deployment ratings below -36°C.
https://www.avient.com/sites/default/files/2024-07/Ballistic Resistant Composite Panels Product Selection _ Install Guide.pdf
CUSTOMIZED SOLUTIONS
Our custom capabilities include:
• Drilling
• Routing
• Machining
USES AND APPLICATIONS
Composite ballistic panels from Avient
are suitable for indoor and outdoor use
in commercial, governmental, industrial,
and residential applications:
• Military structures
• Infrastructure facilities
and equipment
• Banks
• Check cashing stations
• Pawn shops
• Loan and bail/bond offices
• Courtrooms
• Police stations
• Detention facilities
• Bonded warehousing
• Security buildings
• Equipment shielding locations
• Safe rooms
• Storm shelters
• Judges’ chambers
• Finishing
• Custom colors
• Unique panel sizes
UL 752 & NIJ STANDARDS FOR BALLISTIC RESISTANT PROTECTIVE MATERIALS
UL
Rating
NIJ
Level Ammunition Velocity No.
When
covering a sensitive substructure such as glass,
shim the panels 3/8 inch (9.5 mm) to prevent
impact shock damage.
8.
Property GlasArmor Panel ThermoBallistic Panel Test Method
Glass Content 55 wt% 73 wt%
Density 0.066 lb/in3
1.83 g/cm3
0.062 lb/in3
1.72 g/cm3 ASTM D-792
Flex Mod 2.1–2.7 msi
14.5 - 18.6 GPa
2.5 msi
17.2 GPa ASTM D-790
Flex Strength 65 ksi
448 MPa
14 ksi
96.5 MPa ASTM D-790
Barcol Hardness 50–60 n/a ASTM D-2583
Fire Rating 1 hour1 n/a ASTM E-119-09c
Flame Spread Rating 452 n/a ASTM E-84-08a
Smoke Developed Rating 1652 n/a ASTM E-84-08a
MATERIAL DATA (TYPICAL VALUES)
1 UL Level 3 panel was fire tested as part of a wall system with steel studs and drywall face sheet
2 NFPA & IBC Class B rating achieved
www.avient.com
Copyright © 2023, Avient Corporation.
https://www.avient.com/sites/default/files/2023-11/AVNT November IR Presentation.pdf
When showing constant dollar figures on GAAP and non-GAAP financial measures, the foreign exchange impact is calculated by using current foreign exchange rates and applying them to the prior period results.
Continue fostering our Great Place
to Work® culture
Strategic Objectives
Long Term
Growth
Rates
Growth Drivers
$340
$455
$790
$1,120
$51 $84
$212
$650
$108 $113
$231 $230
$265
$358
$726 $730
8-12% 8-10% 8-10% 5%
Sustainable Solutions Composites Healthcare Asia/Emerging Regions
Profitable Growth Great Place to Work
5.4%
10.9%
2006 2014 2023E
EBITDA Margins
$0.14
$1.93
2006 2014 2023E
TOP-TIER SUSTAINABILITY PERFORMANCE
AND RECOGNITION
Industry Sustainability Standards
ESG Ratings Performance
1
3
5
5
87th
94th
percentile
Innovation is the lifeblood of a specialty company.
Avient reflects 2023 adjusted EBITDA guidance of $500M and estimated run-rate CAPEX of $110M.
2023E (%)
27
78
89
84 82 80 77
88
81
76
70 69
60
54
(6)
Av
ie
nt
PP
PM FM
C C
Avient Specialty
Other Specialty /
MULTIPLE EXPANSION
Note: Avient reflects 2023 adjusted EBITDA guidance of $500M and closing share price of $31.18.