https://www.avient.com/sites/default/files/2021-02/avient-ir-presentation-goldman-sachs-and-morgan-stanley.pdf
Q 4 AN D FU LL Y EA R
2020 PE RF O RM AN CE
$0.30
$0.52
Q4 2020 ORGANIC PERFORMANCE
Sales
$922
$997
+8%
Operating
Income
EPS
$58
$80
+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) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Q4 2020 SEGMENT PERFORMANCE
10
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
+8%
+7%
+7%
+12%
$5 $5 $5
$58
$5 $5 $5
$80
Avient CAI SEM Total
$17 $19
$40
$18
$30
$58
Distribution SEM CAI
+38%
+45%
+58%
+6%
(3) (3)
(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
11
• 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
23%8%
21%
2006 2020PF
Avient Portfolio Transformation
22%
59%
CLARIANT MASTERBATCH:
TRANSFORMATIONAL ACQUISITION
12
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/investor-center/news/avient-announces-fourth-quarter-and-full-year-2024-results
We grew organic sales in each of the regions with both our Color, Additives and Inks and Specialty Engineered Materials segments growing at 3% and 6%, respectively, while expanding adjusted EBITDA margins 90 and 110 basis points, respectively, over 2023."
https://www.avient.com/sites/default/files/2024-08/Avient 2023 Sustainability Report_6.pdf
In
ju
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s
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10
0
W
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0.58
Injury Incidence Rate*
Rubber &
Plastics Mfg.
HOME | Contents | Message from the CEO | About Us | People | Products | Planet | Performance | Metrics | Index Sustainability Report | 2023 61
Supporting Local Needs
Worldwide in 2023:
110+ Communities
served worldwide
3,000+ Associates
engaged
60 NGOs and charity
organizations supported
$1.5M Donated
7,000+ Hours
volunteered
Sustainable Practices
for a Better Future
In 2023, Avient held the inaugural Sustainability
Practices for a Better Future contest.
Over 3,000 Avient associates
participated, serving more than 110 communities and benefitting 60 non-profit and charity
organizations around the world.
https://www.avient.com/sites/default/files/2024-08/Avient-2023-Sustainability-Report_5.pdf
In
ju
ri
s
p
r
10
0
W
rk
rs
0.58
Injury Incidence Rate*
Rubber &
Plastics Mfg.
HOME | Contents | Message from the CEO | About Us | People | Products | Planet | Performance | Metrics | Index Sustainability Report | 2023 61
Supporting Local Needs
Worldwide in 2023:
110+ Communities
served worldwide
3,000+ Associates
engaged
60 NGOs and charity
organizations supported
$1.5M Donated
7,000+ Hours
volunteered
Sustainable Practices
for a Better Future
In 2023, Avient held the inaugural Sustainability
Practices for a Better Future contest.
Over 3,000 Avient associates
participated, serving more than 110 communities and benefitting 60 non-profit and charity
organizations around the world.
https://www.avient.com/sites/default/files/2021-09/avient2020sustainabilityreport-9-2-21.pdf
Additional detail, systems, and performance
metrics are provided in the Occupational Health &
Safety section of this report.
0.0
0.3
0.6
0.9
1.2
1.5
2013 2014 2015 2016 2017 2018 2019 2020
In
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0
W
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rs
0.50
COVID-19
Protecting Our People as an Essential Business
As a global organization, Avient recognized the early risks associated with the COVID-19 pandemic.
In this way, we also keep today’s waste from becoming tomorrow’s contamination.
0
ZERO
Reportable Releases
IN EXCESS OF PERMITTED LEVEL
TO THE ENVIRONMENT SINCE 2013
Total Waste Intensity
K
g
W
te
/M
P
ro
ct
io
6,500
13,000
19,500
26,000
2016 2017 2018 2019* 2020*
Total Waste
tr
ic
T
*To facilitate year over year comparisons, 2019 and 2020 metrics for Planet categories have been presented on a pro forma basis inclusive of the acquisition of the Clariant Masterbatch business.
Sustainability Report | 2020 81
https://www.avient.com/sites/default/files/2020-07/avient-audit-committee-charter-rev-10-2019.pdf
https://www.avient.com/california-transparency-act-disclosure
https://www.avient.com/sites/default/files/2020-07/code-of-ethics-for-ceo-cfo-and-controller.pdf
https://www.avient.com/sites/default/files/2020-07/avient-compensation-committee-charter-amended-july-2018-name-july-2020.pdf
https://www.avient.com/sites/default/files/2020-10/avient-conflict-minerals-policy-10.2020.pdf
https://www.avient.com/sites/default/files/2020-07/avient-corporate-governance-guidelines-change-in-ng-committee-name-2020.pdf
https://www.avient.com/sites/default/files/2020-10/avient-environmental-policy-august-2020.pdf
https://www.avient.com/sites/default/files/2021-04/eeo-updated-2020.pdf
https://www.avient.com/company/policies-and-governance/global-policy-anti-bribery-and-anti-corruption
https://www.avient.com/company/policies-and-governance/global-policy-antitrust
https://www.avient.com/sites/default/files/2020-07/avient-governance-and-corporate-responsibility-committee-charter-rev-2020.pdf
https://www.avient.com/company/policies-and-governance/polyone-corporation-privacy-statement
https://www.avient.com/sites/default/files/2020-10/quality-policy.pdf
https://www.avient.com/sites/default/files/2021-05/avient-responsible-care-ehs-s-policies-2021.pdf
https://www.avient.com/sites/default/files/2020-10/avient-health-safety-policy-august-2020.pdf
https://www.avient.com/sites/default/files/2020-10/avient-security-policy-august-2020.pdf
https://www.avient.com/sites/default/files/2020-10/supplier-code-of-conduct.pdf
M E T R I C S
Sustainability Report | 2020 82Sustainability Report | 2020 82
Category 2016 2017 2018 2019 2020
Total TRIR (# - Direct) 0.74 0.69 0.51 0.56 0.50
Total TRIR (# - Contractors) 0.00 0.00 0.00 0.00 0.00
Recordable Injuries (Total #) 51 43 35 36 37
Recordable Illnesses (Total #) 0 0 0 0 0
Total LTIR (# - Direct) 0.29 0.20 0.13 0.29 0.24
Total LTIR (# - Contractors) 0.00 0.00 0.00 0.00 0.00
Total Fatality Rate (# - Direct) 0.00 0.00 0.00 0.00 0.00
Total Fatality Rate (# - Contractors) 0.00 0.00 0.00 0.00 0.00
Process Safety Incident Count (#) 0 0 0 0 0.00
Process Safety Total Incident Rate (#) 0.00 0.00 0.00 0.00 0.00
Process Safety Incident Severity Rate (#) 0.00 0.00 0.00 0.00 0.00
Residual Risk Reduction (# of assessments) NA NA 13,267 7,102 4,258
Residual Risk Point Reduction (#) NA NA 1,035,177 864,997 1,009,830
EH&S Internal Audits (#) 40 53 53 58 37
Workers covered by an EH&S Management Systems (%) 100 100 100 100 100
Workers covered by an internally audited EH&S MS (%) 100 100 100 100 100
Facilities w/ an externally certified EH&S MS (%)* 20 24 30 35 74
Suppliers w/ an externally certified EH&S MS (% of surveyed) NA NA NA NA 81
Transport Incidents (# - US DOT 5800/EU ADR) 0 0 0 0 0
Capital Invested in EH&S ($MM USD) 5.305 5.201 8.858 7.870 4.910
*Includes Responsible Care Management System, Responsible Care 14001, ISO 14001, ISO 45001, ISO 50001, & OHSAS 18001.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520KeyBanc%2520Conference%2520-%2520September%252014%25202016.pdf
PolyOne Corporation Page 3
PolyOne Commodity to Specialty Transformation
2000-20052000-2005 2006 - 20092006 - 2009 2010 – 20152010 – 2015 2016 and
beyond
2016 and
beyond
• Steve Newlin
appointed, Chairman,
• Steve Newlin
appointed, Chairman,
• Substantial EPS growth
from $0.13 to all-time
high of $1.96
• Substantial EPS growth
from $0.13 to all-time
high of $1.96
• Deliver consistent
double digit annual
EPS growth
• Deliver consistent
double digit annual
EPS growth
• Volume driven,
commodity producer
• Volume driven,
commodity producer
pp , ,
President and CEO
• New leadership team
appointed
pp , ,
President and CEO
• New leadership team
appointed
• Shift to faster growing,
high margin, less
• Key acquisitions propel
• Shift to faster growing,
high margin, less
• Key acquisitions propel
• Maintain >35% vitality
index
• Pursue strategic
i iti th t
• Maintain >35% vitality
index
• Pursue strategic
i iti th t
• Heavily tied to
• Heavily tied to
cyclical end markets • Implementation of four
pillar strategy
• Implementation of four
pillar strategy
y q p p
current and future
growth, as well as
margin expansion
• Specialty mix expands
y q p p
current and future
growth, as well as
margin expansion
• Specialty mix expands
acquisitions that
expand specialty
offerings and
geographic breadth
acquisitions that
expand specialty
offerings and
geographic breadth
• Performance largely
dependent on non-
controlling joint
ventures
• Performance largely
dependent on non-
controlling joint
ventures
• Focus on value based
selling, investment in
commercial resources
and innovation to drive
transformation
• Focus on value based
selling, investment in
commercial resources
and innovation to drive
transformation
to 65% of Operating
Income – strongest mix
of earnings in history
to 65% of Operating
Income – strongest mix
of earnings in history
• Invest and grow
current and next
generation talent
• Invest and grow
current and next
generation talent
PolyOne Corporation Page 4
Confirmation of Our Strategy
SpecializationSpecialization GlobalizationGlobalization
Associates
Operational
Operational
Commercial
Commercial
Th W ld’ P i P id f S i li d
PolyOne Corporation Page 5
The World’s Premier Provider of Specialized
Polymer Materials, Services and Solutions
27 Consecutive Quarters of EPS Growth
PolyOne Corporation Page 6
PolyOne
At A Glance
2015 Revenues: $3.4 Billion2015 Revenues: $3.4 Billion 2015 Revenues: $3.4 Billion2015 Revenues: $3.4 Billion
7% PP&S
Distribution
29%
CAI
23%
SEM
%DSS
End MarketsEnd Markets Adjusted EPSAdjusted EPS
66% 15%DSS
End MarketsEnd Markets
$1.31
$1.80
Adjusted EPSAdjusted EPS
Textiles
$1.96
$0 27 $0 21
$0.68
$0.82
$1.00
$1.31
Building &
C
PolyOne Corporation Page 7
$0.12
$0.27 $0.21 $0.13
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
10%Electrical &
Mix Shift Highlights Specialty Transformation
Old
PolyOne
Transformation
2020
80%
nc
om
e*
pe
ra
tin
g
In
80%+
43%
65%
%
o
f O
2%0%
2005 2010 2015 2020
Specialty OI $5M $87M $229M Platinum
PolyOne Corporation Page 8
*Operating Income excludes corporate charges and special items
JV's Performance Products & Solutions Distribution Specialty
Color and Engineered Materials at the
Heart of Specialty Transformation
OPERATING MARGIN
16.7%
17.5%
20%+
COLOR, ADDITIVES
AND INKS
15 8%
20%+
SPECIALTY
ENGINEERED MATERIALS
12.2%
9.6% 9.3%
12.1%
15.8%
1 7%
4.6% 5.1% 5.5%
7.2%
8.1%
3.4%
5.1%
8.0%
8.6%
1.1% 1.3%
YTD YTD
PolyOne Corporation Page 9
Proof of Performance & 2020 Goals
2006 2Q 2016 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income %1) Operating Income %
Specialty:
Color, Additives & Inks 1.7% 18.0% 20%+
S i lt E i d M t i l 1 1% 14 9% 20%+Specialty Engineered Materials 1.1% 14.9% 20%+
Designed Structures & Solutions N/A 1.7% (TTM) 8 – 10%
Performance Products &
Solutions 5.5% 12.3% 12 – 14%
Distribution 2.6% 6.5% 6.5 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 61% 80%+
3) ROIC* 5.0% 12.0% 15%
4) Adjusted EPS Growth N/A 11% Double Digit
PolyOne Corporation Page 10
) j %
Expansion
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
TPE’s & Film
Therma-Tech™ & Sheet
GEON™ Vinyl
TPE + OnForce™
Gravi-Tech™
Polymer ColorantsTherma-Tech™
Film
PolyOne Corporation Page 11Page 11
Target End Markets… Healthcare
OnForce
TPE + OnForce
TPE Vibration Dampening
(SEM/GLS)
Source: Outdoor Industry Association
TPE & Film
(SEM + DSS)
Thermoplastic Elastomers
TPE O F
Polymer Colorants
(CAI)
Thermatech
TPE + OnForce
OnForce
Thermoplastic Elastomers
Sheet
(DSS)
Polymer Colorants
(CAI)
PolyOne Corporation Page 12
Target End Markets… Outdoor High Performance
Sound & Vibration
Management
Roof Systems
Management
Interior & Exterior Trim
Interior Structural
Components
Fuel Handling
Underhood
Components
g
SystemsAir management
Electronics & Cameras
Structural Braces
& Brackets
Lighting
Fluid Handling
PolyOne Corporation Page 13
Target End Markets… Automotive
ColorMatrix™
Amosorb™
ColorMatrix™
Ultimate™ UV
Oxygen Scavenger
Ultimate UV
Light Barrier
PreservaPak™
OnColor™
Smart Batch™
OnCap™
Laser Marking
Additives
VersaFlex™
TPE Cap Liner
PolyOne Corporation Page 14
Target End Markets… Packaging
Innovation Drives Earnings Growth
$53
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
34%
CAI & SEM
Gross Margin
Target ≥ 35%
$20
$53
43%
*Specialty Platform revenue from products introduced in last five years
2006 2015 2006 20152006 2015
Innovation Pipeline PotentialInnovation Pipeline Potential
PolyOne Corporation Page 15
Ours is Not a Cost Cutting Story
VolumeCommercial, R&D Adjusted
2,883
Volume
(lbs in millions)
$192
Commercial, R&D
and Marketing
Spending ($M)
$721
Adjusted
Gross Profit ($M)
-16%
+86%
+138%
2,414$103
$303
2006 20152006 2015 2006 2015
PolyOne Corporation Page 16
Design and Service as a Differentiator
Right Material &
Color
Desired
Product Design
Appropriate
Manufacturing Process
Connecting
Delivering Concept to
Commercialization
Connecting
the Dots with
iQ Design Labs and
InVisiO Color Design
PolyOne Corporation Page 17
CommercializationInVisiO Color Design
Customer First Through World-Class Service
Strengthening relationships through:
Providing LSS services to small/medium sized customers
Providing training in Customer Centric Selling Skills with customers
On-Time Delivery Commitment to Operational Excellence
World’s Best Business
Process Excellence
Program in 2012*
World’s Best Start-up
program for Lean Six Sigma
Deployment in 2009*
81%
93%
2006 2015
Working Capital % of Sales
16.2%
52% of associates trained in LSS
PolyOne Corporation Page 18
2006 2015
Five consecutive years – CFO Magazine Best Working
Capital Management in the chemical industry
Debt Maturities & Pension Funding
102%
Pension Funding**
As of June 30, 2016
$700
$800 Debt Maturities
As of June 30, 2016
($ millions)
80%
90%
$547
$600
$600
$700
70%
$500
50%
$300
$400
30%
2008 2Q 2016
$200
2022 2023
Coupon Rate: LIBOR + 2 75% 5 250%
PolyOne Corporation Page 19
Net Debt / Adjusted EBITDA*= 2.3x
** includes US-qualified pension plans only*TTM 6/30/2016
Coupon Rate: LIBOR + 2.75% 5.250%
(3.50%)
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
Expanding our sales,
marketing, and
technical capabilities
Investing in operational
Repurchased 17.3
million shares since
early 2013
10 0 million shares are Investing in operational
and LSS initiatives
~75% of capital
expenditures fund
growth initiatives Organic
Gro th
Share
Rep rchases
10.0 million shares are
available for
repurchase under the
current authorization
Growth Repurchases
Acquisitions Dividends
Annual Dividend
Targets that expand
our:
• Specialty offerings
• End market
$0.32
$0.40
$0.48
$0.30
$0.40
$0.50
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material $0.24
PolyOne Corporation Page 20
$0.16
$
$0.10
2011 2012 2013 2014 2015 2016
solutions
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/2020-03/2020proxy.pdf
a) Section 5 Section 9
(d) Section 8
Person
Outstanding
Company Voting Securities
Incumbent Board
Business Combination
Section 13
(k)
(l)
(m)
(n)
(o)
Section 5 Section 9
(p)
(q)
(r)
(s)
(t)
(u)
Section 4 Section 9
(v)
(w)
Section 8
(x)
Section 8
(y) Section 8
(z)
(aa)
(bb) Section 6
Section 9
(cc) Section 7 Section 9
(dd)
Section 7 Section 9
(ee)
(ff)
(gg)
Section 5 Section 9
(hh)
3.
https://www.avient.com/sites/default/files/2024-08/Avient-2023-Sustainability-Report_6.pdf
In
ju
ri
s
p
r
10
0
W
rk
rs
0.58
Injury Incidence Rate*
Rubber &
Plastics Mfg.
HOME | Contents | Message from the CEO | About Us | People | Products | Planet | Performance | Metrics | Index Sustainability Report | 2023 61
Supporting Local Needs
Worldwide in 2023:
110+ Communities
served worldwide
3,000+ Associates
engaged
60 NGOs and charity
organizations supported
$1.5M Donated
7,000+ Hours
volunteered
Sustainable Practices
for a Better Future
In 2023, Avient held the inaugural Sustainability
Practices for a Better Future contest.
Over 3,000 Avient associates
participated, serving more than 110 communities and benefitting 60 non-profit and charity
organizations around the world.
https://www.avient.com/sites/default/files/2024-10/Avient CDP Climate Change %26 Water Submission 20241001.pdf
Parameters used in the RCP 2.6 scenario, which limits the radiative forcing to 2.6 W/m2, included measurable factors i.e. total insured value (TIV) exposed due to the
impact of acute (drought, heavy precipitation, heatwaves etc.) and chronic (changing wind patterns, heat stress, sea level rise etc.) physical climate risks based on
property value and business interruption in the medium (by 2030) to long term time-horizon (by 2050).
Parameters used in the RCP 4.5 scenario, which limits the radiative forcing to 4.5 W/m2, included measurable factors i.e. total insured value (TIV) exposed due to the
impact of acute (drought, heavy precipitation, heatwaves etc.) and chronic (changing wind patterns, heat stress, sea level rise etc.) physical climate risks based on
property value and business interruption in the medium (by 2030) to long term time-horizon (by 2050).
The scenarios chosen for physical climate-related risk scenario analysis are low, intermediate and high based on the RCP 2.6, RCP 4.5 and RCP 8.5 scenarios.
111
Parameters used in the RCP 4.5 scenario, which assumes the radiative forcing increases up to 8.5 W/m2, included measurable factors i.e. total insured value (TIV)
exposed due to the impact of acute (drought, heavy precipitation, heatwaves etc.) and chronic (changing wind patterns, heat stress, sea level rise etc.) physical
climate risks based on property value and business interruption in the medium (by 2030) to long term time-horizon (by 2050).
https://www.avient.com/knowledge-base/article/whats-difference-tpes-vs-silicones?ind[]=6596
In Handbook of Polymer Applications in Medicine and Medical Devices,¹ Laurence W.