https://www.avient.com/sites/default/files/2020-08/avient-investor-presentation-jefferies-industrials-conference.pdf
Avient Corporation 1
JEFFERIES VIRTUAL
INDUSTRIALS
CONFERENCE
A U G U S T 2 0 2 0
Avient Corporation 2
FORWARD LOOKING STATEMENTS
Avient Corporation 3
USE OF
NON-GAAP
MEASURES
Avient Corporation 4
UPDATE ON THE
COVID-19 PANDEMIC
Avient Corporation 5
2019 Transportation Consumer
Discretionary
Healthcare Packaging All Other
Industries
Cost
Containment
FX 2020
$64.3 18%
16% 2%
$46.9
SECOND QUARTER 2020 IN REVIEW
Consumer
Discretionary
Avient Corporation 6
CLARIANT MASTERBATCH
STRATEGIC RATIONALE
Avient Corporation 7
FIT W I T H FOUR PILLAR S T R A T E G Y
Specialization
Globalization
Operational
Commercial
People
Avient Corporation 8
2006 2019E PF*
2006 2019E PF*
38%
* 2019E Pro Forma for PP&S Divestiture and Clariant Masterbatch business
Percentage of Total Revenue
E N D M A R K E T T R A N S F O R M A T I O N
Building & Construction High Growth End Markets
50%
22%
Avient Corporation 9
Electronic
38%
18%Transportation
Building &
Constrution
Electrial &
Electronic
2006 Pro Forma(1)
Net Sales by End Market
E N D M A R K E T T R A N S F O R M A T I O N
Avient Corporation 10
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
2006 - 2013
2013 – 2019
PEOPLE
PROD UC TS PLANET
PER FOR M A NC E
Avient Corporation 11
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
46%
66%
0%
40%
60%
80%
100%
2005 2010 2015 Pro Forma
%
o
f
A
d
ju
s
te
d
E
B
IT
D
A
(
1)
JVs Performance Products & Solutions Distribution Specialty
87%
(2)
Avient Corporation 12
T H E N E W A V I E N T : A S P E C I A L T Y G R O W T H C O M P A N Y
Transaction expected to add $0.85 to pro forma adjusted EPS
Avient Corporation 13
SUSTAINABILITY AT AVIENT
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
Avient Corporation 13
Avient Corporation 14
V I S I O N
To be the world’s
premier provider of
specialized polymer
materials, services and
C O R E
V A L U E S
P E R S O N A L
V A L U E S
Honesty IntegrityRespect
Operational
Commercial
Specialization
Globalization
Collaboration ExcellenceInnovation
To be the world’s
premier provider of
specialized polymer
materials, services
and sustainable
Avient Corporation 15
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
0.56
0.14
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
YTD
S A F E T Y F I R S T
Injuries per 100 Workers
Spartech
Acquisition
Avient Corporation 16
G R E A T P L A C E T O W O R K
Avient Corporation 17
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
2006 - 2013 2013 – 20192000-2005 2006 - 2013
2020 and
Beyond
Avient Corporation 18
A V I E N T
2 0 1 9 R E V E N U E | $ 2 . 9 B I L L I O N
Segment End Market Geography
Wire & Cable
Building &
Electrical &
Electronics
Color
Additives
& Inks
34%
Distribution
41%
Specialty
Engineered
Materials
25%
United States
54%
Latin
America
Avient Corporation 19
Operating Income
% of Sales
Color, Additives &
Inks
1.7% 14.7%
Specialty Engineered
Materials
1.1% 11.6%
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
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 2019
$1.69
$1.51
Avient Corporation 20
531
710
1,032
130
164
207
504
663
871
2014 2018 Pro Forma
R&D / Technical Marketing Sales
+ 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
Revenue in Billions
Total
+ 10%
Organic
+ 7%+ 45%
+ 26%
+ 31%
$4.0
$3.2
(2) (1) (1)
$2.9 $2.9
$3.5
2015 2016 2017 2018 Pro
Forma
Total
+ 9%
Organic
+ 5%
Pro Forma(2)
Avient Corporation 21
P R I O R A C Q U I S I T I O N S H I S T O R Y
Commercial
Resources(1)
Operating
Income
($ in millions)
Operating
Margins
256
350
$36
$100
Established Acquisitions
(> 7 years)
+ 37% + 176% + 1000 bps
Avient Corporation 22
A L I G N I N G W I T H T R E N D S F O R G R O W T H
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 E C O N S U M E R
Facilitate
alternative
energy
Light-
weighting
Reduce
packaging
materials
Improve
recyclability
Reduce
spread of
infection
Avient Corporation 23
I N N O V A T I O N
Customization
55%
M&A
30%
Innovation
Pipeline
Innovation comes from Research & Development Spend
Vitality Index
37%
$20
$51
Avient Corporation 24
R E V E N U E F R O M S U S T A I N A B L E S O L U T I O N S
$275M
$325M
$355M
$410M 14% Total Annual Growth
9% Organic Annual Growth
Avient Corporation 25
SEGMENT
HIGHLIGHTS
I N N O V A T I N G W I T H A V I E N T
Avient Corporation 25
Avient Corporation 26
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
Solid
Colorants
Performance
Additives
Screen
Printing Inks
Liquid
Colorants
31%
Building & Construction
Appliances
Electrical & Electronics
Avient Corporation 26
Avient Corporation 27
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 9 R E V E N U E | O V E R $ 1 B I L L I O N
34%
United
States
44%
Mexico
South
America
$4
$25
$104
$147
0.9%
5.5%
12.2%
14.7%
Avient Corporation 27
Avient Corporation 28
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
Engineered
Formulations
Advanced
Composites
Thermoplastic
Elastomers
Wire & Cable*
28%
Electrical & Electronics
Building &
Construction
Avient Corporation 28
Avient Corporation 29
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
2 0 1 9 R E V E N U E | $ 7 5 0 M I L L I O N
27%
United
States
54%
17%
$21
$57
$87
0.1%
5.1%
9.3%
11.6%
Avient Corporation 29
Avient Corporation 30
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
28%
17%
Electrical &
Electronics
Building &
Operating Income & Margin2019 Revenue | $1.2 Billion
$25
$63
$75
$20
2.9%
4.0%
5.9%
6.3%
Avient Corporation 30
http://www.polyone.com/Pages/VariationRoot.aspx
Avient Corporation 31
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
Avient Corporation 31
Avient Corporation 32
Avient Corporation 33
Adjusted EPS attributable to PolyOne common shareholders is calculated as follows:
2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016** 2017** 2018 2018***
Q1
2019*** 2019
Q1
2020
Net income from continuing operations attributable to PolyOne
common shareholders
Joint venture equity earnings, after tax
Special items, before tax
Special items, tax adjustments
Adjusted net income from continuing operations attributable to
PolyOne common shareholders
$ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6 $ 166.4 $ 173.5 $ 161.1 $ 87.7 $ 22.4 $ 75.5 $ 33.1
(19.0) (14.7) (3.7) — — — — — — — — — — —
(48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 23.8 32.9 59.5 58.7 12.2 61.7 9.6
(27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (15.9) (24.8) (25.3) (25.1) (1.2) (5.9) (1.0)
$ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 174.3 $ 181.6 $ 195.3 $ 121.3 $ 33.4 $ 131.3 $ 41.7
Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1 80.4 80.4 78.2 77.7 86.7
Adjusted EPS attributable to PolyOne common shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.06 $ 2.21 $ 2.43 $ 1.51 $ 0.43 $ 1.69 $ 0.48
* Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principle, discontinued operations or the related resegmentation.
** Pro forma for sale of Designed Structures and Solutions segment (DSS).
*** Pro forma for sale of Performance Products and Solutions segment (PP&S).
https://www.avient.com/sites/default/files/2021-04/avnt-first-quarter-2021-news-release.pdf
The company noted the following segment highlights:
The Color, Additives and Inks segment delivered record operating income of $89 million during
the first quarter, a 40% increase over the prior year.
Sales:
Color, Additives and Inks $ 609.3 $ 256.5
Specialty Engineered Materials 216.5 185.3
Distribution 362.7 289.5
Corporate and eliminations (26.2) (19.8)
Sales $ 1,162.3 $ 711.5
Gross margin:
Color, Additives and Inks $ 197.5 $ 89.4
Specialty Engineered Materials 64.7 52.6
Distribution 39.3 33.6
Corporate and eliminations 0.9 (4.1)
Gross margin $ 302.4 $ 171.5
Selling and administrative expense:
Color, Additives and Inks $ 108.7 $ 48.9
Specialty Engineered Materials 30.5 30.3
Distribution 15.3 14.2
Corporate and eliminations 27.5 25.3
Selling and administrative expense $ 182.0 $ 118.7
Color, Additives and Inks $ 88.8 $ 40.5
Specialty Engineered Materials 34.2 22.3
Distribution 24.0 19.4
Corporate and eliminations (26.6) (29.4)
Operating income $ 120.4 $ 52.8
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA):
Color, Additives and Inks $ 116.2 $ 51.4
Specialty Engineered Materials 42.0 29.8
Distribution 24.2 19.5
Corporate and eliminations (24.9) (28.0)
Other income, net 1.5 1.6
EBITDA $ 159.0 $ 74.3
12
Attachment 7
Reconciliation of Non-GAAP Financial Measures (Unaudited)
Senior management uses gross margin before special items and operating income before special items to assess performance
and allocate resources because senior management believes that these measures are useful in understanding current
profitability levels and how it may serve as a basis for future performance.
Reconciliation of Pro Forma Adjusted Earnings per Share:
Three Months Ended
Net income from continuing operations attributable to Avient shareholders $ 33.1
Special items, after tax (Attachment 3) 8.6
Adjusted net income from continuing operations excluding special items 41.7
Clariant MB pro forma adjustments to net income from continuing operations(2) 7.8
Pro forma adjusted net income from continuing operations attributable to Avient shareholders $ 49.5
Weighted average diluted shares 86.7
Pro forma impact to diluted shares from January 2020 equity offering 6.1
Pro forma weighted average diluted shares 92.8
Adjusted EPS - excluding special items pro forma for Clariant MB acquisition $ 0.53
December 31, 2020
Reconciliation of Pro Forma Adjusted
Earnings per Share: Avient
Special
Adjusted
Clariant MB
Pro Forma
Adjustments(2)
Pro Forma
Adjusted
Sales $ 3,242.1 $ — $ 3,242.1 $ 540.4 $ 3,782.5
Operating income $ 189.3 $ 73.7 $ 263.0 $ 45.0 $ 308.0
Interest expense, net (74.6) 10.1 (64.5) (18.1) (82.6)
Other income, net 24.3 (17.6) 6.7 — 6.7
Income taxes (5.2) (41.4) (46.6) (6.2) (52.8)
Net income attributable to noncontrolling
interests (1.8) — (1.8) — (1.8)
Net income from continuing operations
attributable to Avient shareholders $ 132.0 $ 24.8 $ 156.8 $ 20.7 $ 177.5
Weighted average diluted shares 90.6
Impact to diluted shares from January 2020 equity offering 1.5
Pro forma weighted average diluted shares 92.1
Pro forma adjusted EPS $ 1.93
(2) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
14
December 31, 2019
Reconciliation of Pro Forma Adjusted
Earnings per Share: Avient
Special
Adjusted
Clariant MB
Pro Forma
Adjustments(3)
Pro Forma
Adjusted
Sales $ 2,862.7 $ — $ 2,862.7 $ 1,118.6 $ 3,981.3
Operating income $ 156.8 $ 71.7 $ 228.5 $ 72.9 $ 301.4
Interest expense, net (59.5) — (59.5) (33.4) (92.9)
Other income, net 12.1 (10.0) 2.1 — 2.1
Income taxes (33.7) (5.9) (39.6) (9.1) (48.7)
Net income attributable to noncontrolling
interests (0.2) — (0.2) — (0.2)
Net income from continuing operations
attributable to Avient shareholders $ 75.5 $ 55.8 $ 131.3 $ 30.4 $ 161.7
Weighted average diluted shares 77.7
Impact to diluted shares from January 2020 equity offering 15.3
Pro forma weighted average diluted shares 93.0
Pro forma adjusted EPS $ 1.74
(3) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
15
Reconciliation of EBITDA by Segment
Year Ended December 31,
2021 2020 2020 2019 2018
Color, Additives and Inks $ 88.8 $ 40.5 $ 180.8 $ 147.4 $ 158.5
Specialty Engineered Materials 34.2 22.3 94.4 83.7 72.3
Distribution 24.0 19.4 69.5 75.4 71.5
Corporate and eliminations (26.6) (29.4) (155.4) (149.7) (123.7)
Operating income $ 120.4 $ 52.8 $ 189.3 $ 156.8 $ 178.6
Items Below OI in Corporate
Other income, net $ 1.5 $ 1.6 $ 24.3 $ 12.1 $ (12.9)
Depreciation & Amortization:
Color, Additives and Inks $ 27.4 $ 10.9 $ 75.1 $ 42.7 $ 44.3
Specialty Engineered Materials 7.8 7.5 30.0 29.5 23.2
Distribution 0.2 0.1 0.7 0.5 0.7
Corporate and eliminations 1.7 1.4 9.2 5.4 4.4
Depreciation & Amortization $ 37.1 $ 19.9 $ 115.0 $ 78.1 $ 72.6
EBITDA
Color, Additives and Inks $ 116.2 $ 51.4 $ 255.9 $ 190.1 $ 202.8
Specialty Engineered Materials 42.0 29.8 124.4 113.2 95.5
Distribution 24.2 19.5 70.2 75.9 72.2
Corporate and eliminations (24.9) (28.0) (146.2) (144.3) (119.3)
EBITDA $ 159.0 $ 74.3 $ 328.6 $ 247.0 $ 238.3
EBITDA as a % of Sales:
Color, Additives and Inks 19.1 % 20.0 % 17.0 % 18.9 % 19.4 %
Specialty Engineered Materials 19.4 % 16.1 % 17.6 % 15.2 % 14.8 %
Distribution 6.7 % 6.7 % 6.3 % 6.4 % 5.7 %
16
Reconciliation of Pro Forma EBITDA - Color,
Additives and Inks
Three Months Ended
March 31,
Year Ended
December 31,
2020 2020 2019 2018
Sales:
Color, Additives and Inks $ 256.5 $ 1,502.9 $ 1,003.8 $ 1,046.5
Clariant MB pro forma adjustments(4) 279.4 540.4 1,118.6 1,209.8
Pro forma sales $ 535.9 $ 2,043.3 $ 2,122.4 $ 2,256.3
Color, Additives and Inks $ 40.5 $ 180.8 $ 147.4 $ 158.5
Clariant MB pro forma adjustments(4) 23.0 45.0 72.9 80.3
Pro forma operating income $ 63.5 $ 225.8 $ 220.3 $ 238.8
Depreciation & amortization:
Color, Additives and Inks $ 10.9 $ 75.1 $ 42.7 $ 44.3
Clariant MB pro forma adjustments(4) 15.1 30.1 60.3 61.2
Pro forma depreciation & amortization $ 26.0 $ 105.2 $ 103.0 $ 105.5
Earnings Before Interest, Taxes, Depreciation
and Amortization (EBITDA):
Color, Additives and Inks $ 51.4 $ 255.9 $ 190.1 $ 202.8
Clariant MB pro forma adjustments(4) 38.1 75.1 133.2 141.5
Pro forma EBITDA $ 89.5 $ 331.0 $ 323.3 $ 344.3
Pro forma EBITDA as a % of Sales 16.7 % 16.2 % 15.2 % 15.3 %
Three Months Ended
March 31,
Year Ended
December 31,
Reconciliation to Adjusted EBITDA: 2021 2020 2020 2019 2018
Net income from continuing operations – GAAP $ 79.7 $ 33.1 $ 133.8 $ 75.7 $ 87.4
Income tax expense 22.9 11.9 5.2 33.7 14.4
Interest expense 19.3 9.4 74.6 59.5 62.8
Debt extinguishment cost — — 1.1
Depreciation and amortization from continuing operations 37.1 19.9 115.0 78.1 72.6
EBITDA $ 159.0 $ 74.3 $ 328.6 $ 247.0 $ 238.3
Special items, before tax 2.4 9.6 66.2 61.7 59.5
Interest expense included in special items — — (10.1) — —
Accelerated depreciation included in special items (0.5) — (3.2) — (3.0)
Adjusted EBITDA $ 160.9 $ 83.9 $ 381.6 $ 308.7 $ 294.8
Reconciliation of Pro Forma Sales:
Three Months Ended
Sales $ 711.5
Clariant MB pro forma adjustment to sales(4) 279.4
Pro forma sales $ 990.9
(4) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020)
17
Avient Announces Record First Quarter 2021 Results; Increases Full Year Guidance.pdf
NEWS RELEASE
4.29 232pm News Release (002).pdf