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).
For purposes of comparability to the prior year, senior management has referenced adjusted EPS excluding the impact of additional shares issued in February 2020, as well as the impact of the
senior unsecured notes offering completed in May 2020.
This calculation of adjusted EPS excludes the additional February shares issued, the benefit of interest income earned on cash raised in
connection with the share issuance, as well as the interest expense recognized in connection with the debt proceeds received from the May senior unsecured notes offering.
https://www.avient.com/sites/default/files/2022-04/Avient Q1 2022 Earnings Release.pdf
The company noted that GAAP EPS includes special items (Attachment 3), which
impacted EPS in both periods.
The company noted sales growth in nearly all end markets, as it continues to more than offset
inflation to deliver record results.
Three Months Ended March 31,
2022 2021
GAAP
Results
Special
Items
Adjusted
Results
GAAP
Results
Special
Items
Adjusted
Results
$111.1 $ 7.7 $ 118.8 $102.6 $ 2.4 $ 105.0
Income tax expense - GAAP (26.6) — (26.6) (22.9) — (22.9)
Income tax impact of special items (Attachment 3) — (2.0) (2.0) — (0.9) (0.9)
Tax adjustments (Attachment 3) — 1.5 1.5 — 1.1 1.1
Income tax (expense) benefit $ (26.6) $ (0.5) $ (27.1) $ (22.9) $ 0.2 $ (22.7)
Effective Tax Rate(1) 23.9 % 22.8 % 22.3 % 21.6 %
(1) Rates may not recalculate from figures presented herein due to rounding
12
Reconciliation of EBITDA by Segment Three Months Ended
March 31,
2022 2021
Operating income:
Color, Additives and Inks $ 94.5 $ 88.8
Specialty Engineered Materials 39.7 34.2
Distribution 24.2 24.0
Corporate and eliminations (29.8) (26.6)
Operating income $ 128.6 $ 120.4
Items below OI in Corporate:
Other income, net $ (0.6) $ 1.5
Depreciation & amortization:
Color, Additives and Inks $ 26.0 $ 27.4
Specialty Engineered Materials 7.8 7.8
Distribution 0.2 0.2
Corporate and eliminations 3.8 1.7
Depreciation & Amortization $ 37.8 $ 37.1
EBITDA:
Color, Additives and Inks $ 120.5 $ 116.2
Specialty Engineered Materials 47.5 42.0
Distribution 24.4 24.2
Corporate and eliminations (26.0) (24.9)
Other income, net (0.6) 1.5
EBITDA $ 165.8 $ 159.0
EBITDA as a % of Sales:
Color, Additives and Inks 18.6 % 19.1 %
Specialty Engineered Materials 19.4 % 19.4 %
Distribution 5.6 % 6.7 %
Three Months Ended
March 31,
Reconciliation to EBITDA and Adjusted EBITDA: 2022 2021
Net income from continuing operations – GAAP $ 84.5 $ 79.7
Income tax expense 26.6 22.9
Interest expense 16.9 19.3
Depreciation and amortization 37.8 37.1
EBITDA $ 165.8 $ 159.0
Special items, before tax 7.7 2.4
Depreciation and amortization included in special items (2.1) (0.5)
Adjusted EBITDA $ 171.4 $ 160.9
NEWS RELEASE
Attachment 1
https://www.avient.com/sites/default/files/2024-12/Terms and Conditions of Sale for Argentina %28English and Spanish Translation%29.pdf
Microsoft Word - Terms and Conditions - Argentina (12-17-24)
TERMS AND CONDITIONS
These Terms and Conditions govern the sale of Products to
another (“Buyer”) by Avient Corporation
and its affiliates (“Seller”).
1.
Seller has no liability
for the failure of discharge or unloading equipment or
materials used by Buyer, whether or not supplied by Seller.
12.
El Vendedor no es responsable por fallas en
los equipos o materiales que utilice el Comprador para
despachar o descargar el Producto, independientemente de si
esos equipos y materiales fueron proporcionados o no por el
Vendedor.
12.
https://www.avient.com/sites/default/files/resources/PolyOne%25202018%2520Proxy%2520Statement.PDF
The term of any pre-approval is
12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period.
Adjusted operating income is defined as business unit and/or total Company
operating income excluding special items (as noted on Appendix A).
The specific levels of stock ownership for the continuing Named Executive Officers
are noted in the following table.
https://www.avient.com/sites/default/files/2023-09/QRG language setup in CSP.pdf
Note: By default, the CSP is shown in US English.
https://www.avient.com/sites/default/files/2021-05/avient-colorants-singapore-name-change-certificate-may-17-2021.pdf
LTD. 27/05/2019
(Note: Only the five (5) most recent former names are listed.
https://www.avient.com/sites/default/files/resources/PolyOne%2520Proxy%2520Statement%25202016.pdf
ii
NOTICE OF 2016 ANNUAL MEETING OF SHAREHOLDERS
Thursday, May 12, 2016
9:00 a.m.
$0
$50
$100
$150
$200
$250
$300
$350
12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15
Comparison of Cumulative Total Return to Shareholders
PolyOne Corporation S&P 500 Index S&P Mid Cap Chemicals
POL
0%
25%
50%
75%
100%
0% 25% 50% 75% 100%
om
pe
ns
at
io
n
ile
2014 - 2015 TSR Performance %ile
Peer Group Pay vs.
The specific levels of stock ownership for the Named Executive Officers are noted in the following
table.
https://www.avient.com/sites/default/files/2021-03/avient-antitrust-2021-update-english.pdf
Do consult with the Avient Legal Department before
terminating any agent, dealer or distributor.
12.
Remember
that notes written in the margin of a document
and other informal written communications can be
misconstrued and, therefore, even more damaging
than formal documents.
Immediately upon leaving, write a
note concerning the time, place and parties involved in the discussion, sign and date the note and give it to the Avient
Legal Department
https://www.avient.com/sites/default/files/2021-04/avnt-fourth-quarter-2020-news-release.pdf
The company noted that GAAP EPS includes special items of
$0.29 (Attachment 3) primarily associated with one-time tax benefits of $0.35, which was
partially offset by acquisition-related and restructuring costs.
The Company noted it will provide more details on its 2021 outlook during the webcast
scheduled for 9:00 a.m.
In addition, a recording of the audio will be available for one week, beginning at 12:00
p.m.
https://www.avient.com/sites/default/files/2020-11/investing-in-avient_0.pdf
As we look to the future, we expect sales of our sustainable solutions to
accelerate and grow at an 8-12% CAGR, furthering the win-win benefit
trend for both Avient and our planet.
10
Eight Ways Avient Enables Sustainability
2016 2017 2018 2019 2020PF
Revenue from Sustainable Solutions(1) 2016–2020
VOC Reduction Reduced Energy Use
Bio-derived Content Eco-conscious
Renewable Energy Applications Recyclability
Reduced Material Requirements Lightweighting
$275M
$325M
$355M
$410M
$550M
(2)
Our world-class vitality index of 36% represents sales from products introduced
in the last five years.
INVESTMENT IN COMMERCIAL RESOURCES
D R I V E S I N N O VAT I V E P R O D U C T P O R T F O L I O AN D S AL E S G R O W T H
19
160
270
2011 2019 2020E
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
TARGET NET
LEVERAGE BY 2021
~$1Bn
REPURCHASED
OVER LAST 10 YEARS
~$350MM
PAID OVER LAST 10 YEARS
RETURNING VALUE TO SHAREHOLDERS
12
Free Cash Flow Dividends Share Repurchases Deleveraging
Strong track record of cash generation put to work in M&A and return to shareholders while modestly levered
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
2.9x
2020PF* 2021E
Growing Dividend Cumulative Buybacks Net Leverage
$
$
p
e
r
s
h
a
re
*2020 estimate and Pro forma for acquisition of the Clariant Masterbatch business
Cash Generation
~$270MM
Another unique value creation lever at Avient is synergy capture with our recent
acquisition of Clariant Masterbatch.
It’s important to note that future revenue synergies through increased innovation and
commercial excellence are not part of these estimates and will represent additional
growth over the long term.