https://www.avient.com/sites/default/files/resources/POL%2520Gabelli%2520IR%2520Presentation%2520w%2520Non-GAAP%252003%252020%25202014.pdf
They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements.
The non-GAAP financial measures include: adjusted EPS, earnings before interest, tax, depreciation and amortization (EBITDA), adjusted EBITDA, net debt, Specialty platform operating income, Specialty platform gross margin percentage, adjusted operating income, return on invested capital, net debt/ EBITDA, and the exclusion of corporate charges in certain calculations.
Adjusted EPS 2006Y* 2007Y* 2008Y* 2009Y* 2010Y 2011Y 2012Y 2013Y Net income attributable to PolyOne common shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 SunBelt equity earnings, after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) - - Special items, after tax (21.2) 41.4 310.0 (31.0) 15.8 (30.5) 35.7 30.4 Tax adjustments (30.0) (30.7) 147.2 (44.9) (88.3) (42.3) 0.5 2.2 Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8 96.1 Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 * Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
https://www.avient.com/sites/default/files/2023-07/AVNT Q2 2023 Earnings Presentation%5B70%5D.pdf
They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements.
We also monitor earnings (defined as net income from continuing operations) before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA (EBITDA before the impact of special items) as a supplement to our GAAP measures.
Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net income from continuing operations attributable to Avient shareholders $ 22.1 $ 0.24 $ 62.8 $ 0.68 Special items, after tax 19.6 0.21 3.2 0.03 Amortization expense, after-tax 16.2 0.18 $ 10.5 $ 0.12 Adjusted net income / EPS $ 57.9 $ 0.63 $ 76.5 $ 0.83 Three Months Ended June 30, Six Months Ended June 30, Reconciliation to EBITDA and Adjusted EBITDA: 2023 2022 2023 2022 Net income from continuing operations – GAAP $ 22.3 $ 62.8 $ 43.6 $ 127.5 Income tax expense 10.4 22.7 18.1 42.7 Interest expense, net 29.4 16.2 58.2 33.1 Depreciation and amortization 47.6 36.5 98.1 74.3 EBITDA from continuing operations $ 109.7 $ 138.2 $ 218.0 $ 277.6 Special items, before tax 21.7 0.9 49.0 7.6 Depreciation and amortization included in special items (0.1) (1.1) (1.9) (3.2) Adjusted EBITDA $ 131.3 $ 138.0 $ 265.1 $ 282.0 Pro forma APM adjustments — 34.3 — 66.3 Pro forma adjusted EBITDA $ 131.3 $ 172.3 $ 265.1 $ 348.3 Pro forma adjusted EBITDA as a % of sales 15.9 % 17.4 % 15.9 % 17.6 % 1 AVNT Q2 2023 Earnings Presentation 7.26.23 IR Deck - AVNT-2023.06.30 7.24 1217PM non GAAP attachment Attachment
https://www.avient.com/sites/default/files/2021-04/avient-q4-earnings-and-2021-outlook-website.pdf
They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements.
We also monitor earnings (defined as net income from continuing operations) before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA (EBITDA before the impact of special items) as a supplement to our GAAP measures.
Free Cash Flow Calculation Year Ended December 31, 2020 Cash provided (used) by operating activities $ 221.6 Capital expenditures (63.7) Free Cash Flow 157.9 Payment of post-acquisition date earnout liability 38.1 Taxes paid on gain on divestiture 142.0 Adjusted Free Cash Flow $ 338.0 Year Ended December 31, 2019 Free Cash Flow Calculation Total Discontinued Operations Continuing Operations Cash provided by operating activities $ 300.8 $ 74.4 $ 226.4 Capital expenditures 81.7 14.1 67.6 Free Cash Flow $ 219.1 $ 60.3 $ 158.8 6 Avient Q4 Earnings and 2021 Outlook.pdf Avient February IR Presentation.pdf Avient IR Presentation - Goldman Sachs and Morgan Stanley - Website.pdf Avient Q4 Earnings and 2021 Outlook.pdf Avient Q4 Earnings and 2021 Outlook.pdf Avient Q4 Earnings and 2021 Outlook.pdf Avient Q4 Earnings and 2021 Outlook.pdf Avient Q4 Earnings and 2021 Outlook.pdf 2.5.21 IR Deck Attachments clean
https://www.avient.com/sites/default/files/2024-10/Avient CDP Climate Change %26 Water Submission 20241001.pdf
Identification, assessment, and management of dependencies, impacts, risks, and opportunities (2.1) How does your organization define short-, medium-, and long-term time horizons in relation to the identification, assessment, and management of your environmental dependencies, impacts, risks, and opportunities?
This process helps us ensure our risk identification and responses remain up to-date, mitigation actions remain effective, and that new and emerging risks are considered in our assessment.
These scenarios considered carbon taxes implemented on a global scale, with rates ranging from conservative in regions like Latin America and Asia to more aggressive in Europe.
https://www.avient.com/sites/default/files/resources/Innovation%2520Day%2520-%2520May%25202014.pdf
They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements.
The non-GAAP financial measures include: adjusted EPS, earnings before interest, tax, depreciation and amortization (EBITDA), adjusted EBITDA, net debt, Specialty platform operating income, Specialty platform gross margin percentage, adjusted operating income, return on invested capital, net debt/ EBITDA, and the exclusion of corporate charges in certain calculations.
Christopher Murphy Vice President, Research and Development Chief Innovation Officer PolyOne Corporation Page 22 2 lbs Plastic = 3 lbs aluminum or 8 lbs steel or 27 lbs glass 33% less material by weight than aluminum 75% less material by weight than steel 93% less material by weight than glass Requires 91% less energy to recycle a pound of plastic versus a pound of paper Source: SPI: Sustainability and the Plastics Industry Plastics: Key to Future Sustainable Development PolyOne Corporation Page 23 Decreasing Dependence on Fossil Fuels Globalizing and Localizing • Aging population • Longer life expectancy • Healthy living • Aging in place • Environmental consciousness • Alternative energy • Resource efficiency • Biotechnology • Global leader/local expert with customized solutions • Global OEMs seeking one standard of service everywhere • Efficiency focus • Reduced size/weight • Mass transit • Alternative materials • Electric vehicles Protecting the Environment Improving Health and Wellness Alignment with Megatrends PolyOne Corporation Page 24 Innovation Drives Earnings Growth $20 $53 2006 2013 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* *Percentage of Specialty Platform revenue from products introduced in last five years 14.3% 30.7% 2006 2013 Specialty Platform Gross Margin % 19.5% 43.0% 2006 2013 PolyOne Corporation Page 25 Prototype Frame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 4 11 5 10 6 9 3 4 2 15 9 1 10 4 Breakthrough Platform Derivative A Rich Pipeline of Opportunity Number of Projects 25 14 19 17 18 93 Addressable Market ($ millions) TBD TBD $800 $450 $450 $1,700 PolyOne Corporation Page 26 Recent Innovations Aligned with Megatrends in Key End Markets and 2015 Goals Robert M.
https://www.avient.com/sites/default/files/2021-10/avnt-q3-2021-earnings-presentation_0.pdf
They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements.
APPENDIX Performance Additives 15% Pigments 15% TiO2 12% Dyestuffs 4%Polyethylene 10% Nylon 5% Polypropylene 4% Other Raw Materials 29% Styrenic Block Copolymer 6% ~1/3 hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials 27 • Significant raw material price inflation and tight inventory continued in Q3 2021 o Average cost of hydrocarbon based materials was up 65% year-over-year and 10% sequentially o Average cost of non-hydrocarbon based materials was up 20% year-over-year and 3% sequentially • Additionally, we continued to experience other supply chain challenges during Q3 related to raw material spot purchases, freight constraints and productivity loss as a result of these shortages Annual Purchases RAW MATERIAL AND SUPPLY CHAIN UPDATE Based on 2020 pro forma purchases, excludes Distribution business SEGMENT DATA U.S. & Canada 51% EMEA 25% Asia 16% Latin America 8% 2021 YTD SEGMENT, END MARKET AND GEOGRAPHY 29 GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 23% Packaging 19% Industrial 16% Building and Construction 10% Telecommunications 4% Energy 2% END MARKET REVENUE (1) Total company sales and EBITDA of $3,617M and $455M, respectively, include intercompany sales eliminations and corporate costs All charts reflect YTD financials through September 30 $1,820M $321M $691M $127M $1,206M $72M Sales Adjusted EBITDA Distribution Specialty Engineered Materials Color Additives and Inks $455M$3,617M (1) Transportation 12% Healthcare 14% Packaging 34% Consumer 21% Healthcare 7% Industrial 16% Building & Construction 10% Transportation 9% Energy 2% Telecommunications 1% C O L O R , A D D I T I V E S & I N K S 2021 YTD REVENUE | $1 .8 BILL ION US & Canada 31% EMEA 42% Asia 21% Latin America 6% END MARKET REGION 30 All charts reflect 2021 YTD financials through September 30 S P E C I A LT Y E N G I N E E R E D M AT E R I A L S Consumer 28% Healthcare 10% Packaging 6% Telecommunications 16% Transportation 12% Industrial 11% Building & Construction 10% Energy 7% 2021 YTD REVENUE | $691 MILLION END MARKET US & Canada 55% EMEA 25% Asia 20% REGION 31 All charts reflect 2021 YTD financials through September 30 DI S TR IBU T I ON Healthcare 26% Consumer 22% Packaging 6% Industrial 20% Transportation 16% Building and Construction 8% Energy 1% Telecommunications 1% US & Canada 81% Asia 4% Latin America 15% END MARKET REGION K E Y S U P P L I ER S 2021 YTD REVENUE | $1 .2 BILL ION 32 All charts reflect 2021 YTD financials through September 30 TOTA L C O M PA N Y R E G I O N A L S A L E S BY END MARKET Packaging 30% Consumer 27% Healthcare 12% Industrial 14% Building & Construction 5% Telecommunications 2% Energy 2% Asia (16% of sales) Transportation 8% Packaging 31% Consumer 14% Healthcare 5% Industrial 17% Building & Construction 12% Telecommunications 5% Energy 4% EMEA (25% of sales) Transportation 12% 33 Consumer 25% Healthcare 19% Packaging 10% Industrial 17% Building & Construction 10% Telecommunications 4% Energy 2% US & Canada (51% of sales) Transportation 13% Packaging 42% Consumer 33% Healthcare 3% Industrial 10% Building & Construction 5% Telecommunications 1% LATAM (8% of sales) Transportation 6% All charts reflect 2021 YTD financials through September 30 Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Three Months Ended September 30, 2021 Reconciliation to Condensed Consolidated Statements of Income GAAP Results Special Items Adjusted Results Operating income $ 78.7 $ 20.0 $ 98.7 Income from continuing operations before income taxes $ 61.1 $ 19.9 $ 81.0 Income tax expense - GAAP (8.5) — (8.5) Income tax impact of special items — (4.6) (4.6) Tax adjustments — (3.6) (3.6) Net income attributable to noncontrolling interests 0.3 — 0.3 Net income from continuing operations attributable to Avient shareholders $ 52.9 $ 11.7 $ 64.6 Net income / EPS $ 0.57 $ 0.13 $ 0.70 Weighted-average diluted shares 92.2 92.2 92.2 Three Months Ended September 30, 2020 Reconciliation to Condensed Consolidated Statements of Income GAAP Results Special Items Adjusted Results Operating income $ 33.5 $ 40.4 $ 73.9 Income from continuing operations before income taxes $ 5.3 $ 50.0 $ 55.3 Income tax expense - GAAP (2.7) — (2.7) Income tax impact of special items — (12.7) (12.7) Tax adjustments — 3.0 3.0 Net income attributable to noncontrolling interests (0.9) — (0.9) Net income from continuing operations attributable to Avient shareholders $ 1.7 $ 40.3 $ 42.0 Net income / EPS $ 0.02 $ 0.44 $ 0.46 Weighted-average diluted shares 91.9 91.9 91.9 1 Three Months Ended September 30, Three Months Ended Nine Months Ended Year Ended December 31, Reconciliation to Pro Forma Adjusted EBITDA 2021 2020 June 30, 2021 September 30, 2021 2020 2019 2018 Net income from continuing operations – GAAP $ 52.6 $ 2.6 $ 69.4 $ 201.7 $ 133.8 $ 75.7 $ 87.4 Income tax expense 8.5 2.7 20.4 51.8 5.2 33.7 14.4 Interest expense 19.0 29.7 19.5 57.8 74.6 59.5 62.8 Debt extinguishment cost — — — — — — 1.1 Depreciation and amortization from continuing operations 36.8 36.5 33.8 107.7 115.0 78.1 72.6 EBITDA $ 116.9 71.5 $ 143.1 $ 419.0 $ 328.6 $ 247.0 $ 238.3 Special items, before tax 19.9 50.0 14.2 36.5 66.2 61.7 59.5 Interest expense included in special items — (9.6) — — (10.1) — — Depreciation and amortization included in special items (0.9) (1.3) 1.4 (0.1) (3.2) — (3.0) Adjusted EBITDA $ 135.9 $ 110.6 $ 158.7 $ 455.4 $ 381.6 $ 308.7 $ 294.8 Clariant MB pro forma adjustments(1) — — — — 75.1 133.2 141.5 Pro forma adjusted EBITDA $ 135.9 $ 110.6 $ 158.7 $ 455.4 $ 456.7 $ 441.9 $ 436.3 (1) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition 2 Reconciliation of EBITDA by Segment Three Months Ended September 30, Nine Months Ended September 30, Year Ended December 31, 2021 2020 2021 2020 2019 2018 Sales: Color, Additives and Inks $ 586.6 $ 493.8 $ 1,820.3 $ 1,502.9 $ 1,003.8 $ 1,046.5 Specialty Engineered Materials 233.6 174.1 690.7 708.8 745.7 645.8 Distribution 438.8 276.9 1,205.9 1,110.3 1,192.2 1,265.4 Corporate and eliminations (39.2) (20.3) (99.6) (79.9) (79.0) (76.7) Sales $ 1,219.8 $ 924.5 $ 3,617.3 $ 3,242.1 $ 2,862.7 $ 2,881.0 Operating income: Color, Additives and Inks $ 66.8 $ 50.5 $ 241.9 $ 180.8 $ 147.4 $ 158.5 Specialty Engineered Materials 31.7 24.7 103.2 94.4 83.7 72.3 Distribution 23.8 17.5 71.5 69.5 75.4 71.5 Corporate and eliminations (43.6) (59.2) (109.4) (155.4) (149.7) (123.7) Operating income $ 78.7 $ 33.5 $ 307.2 $ 189.3 $ 156.8 $ 178.6 Items below OI in Corporate: Other income, net $ 1.4 $ 1.5 $ 4.1 $ 24.3 $ 12.1 $ (12.9) Depreciation & amortization: Color, Additives and Inks $ 26.6 $ 26.3 $ 79.2 $ 75.1 $ 42.7 $ 44.3 Specialty Engineered Materials 7.9 7.5 23.8 30.0 29.5 23.2 Distribution 0.2 0.2 0.6 0.7 0.5 0.7 Corporate and eliminations 2.1 2.5 4.1 9.2 5.4 4.4 Depreciation & Amortization $ 36.8 $ 36.5 $ 107.7 $ 115.0 $ 78.1 $ 72.6 EBITDA: Color, Additives and Inks $ 93.4 $ 76.8 $ 321.1 $ 255.9 $ 190.1 $ 202.8 Specialty Engineered Materials 39.6 32.2 127.0 124.4 113.2 95.5 Distribution 24.0 17.7 72.1 70.2 75.9 72.2 Corporate and eliminations (41.5) (56.7) (105.3) (146.2) (144.3) (119.3) EBITDA $ 116.9 $ 71.5 $ 419.0 $ 328.6 $ 247.0 $ 238.3 EBITDA as a % of Sales: Color, Additives and Inks 15.9 % 15.6 % 17.6 % 17.0 % 18.9 % 19.4 % Specialty Engineered Materials 17.0 % 18.5 % 18.4 % 17.6 % 15.2 % 14.8 % Distribution 5.5 % 6.4 % 6.0 % 6.3 % 6.4 % 5.7 % 3 Reconciliation of Pro Forma EBITDA - Color, Additives and Inks Year Ended December 31, 2020 2019 2018 Sales: Color, Additives and Inks $ 1,502.9 $ 1,003.8 $ 1,046.5 Clariant MB pro forma adjustments(1) 540.4 1,118.6 1,209.8 Pro forma sales $ 2,043.3 $ 2,122.4 $ 2,256.3 Operating income: Color, Additives and Inks $ 180.8 $ 147.4 $ 158.5 Clariant MB pro forma adjustments(1) 45.0 72.9 80.3 Pro forma operating income $ 225.8 $ 220.3 $ 238.8 Depreciation & amortization: Color, Additives and Inks $ 75.1 $ 42.7 $ 44.3 Clariant MB pro forma adjustments(1) 30.1 60.3 61.2 Pro forma depreciation & amortization $ 105.2 $ 103.0 $ 105.5 EBITDA Color, Additives and Inks $ 255.9 $ 190.1 $ 202.8 Clariant MB pro forma adjustments(1) 75.1 133.2 141.5 Pro forma EBITDA $ 331.0 $ 323.3 $ 344.3 Pro forma EBITDA as a % of Sales 16.2 % 15.2 % 15.3 % (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 4 Year Ended December 31, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient 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 (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition Year Ended December 31, 2019 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient 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 (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 5 AVNT Q3 2021 Earnings Presentation.pdf AVNT Q3 2021 Earnings Presentation.pdf Final 10.27 606pm Q3 21 IR Deck Version v1.pdf
https://www.avient.com/sites/default/files/2021-12/AVNT 2021 Investor Day_0.pdf
They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements.
Post-consumer recycled content as percentage of total plastic packaging volume, by weightAvient Corporation 36 37Avient Corporation T O P 5 G A P S T H A T W E A R E A D D R E S S I N G 2: DECONTAMINATION1: COLOR MANAGEMENT 3: MAINTAINING MECHANICAL PROPERTIES 4: MONO-MATERIAL CONSTRUCTION 5: CONSISTENT RECYCLED MATERIAL QUALITY Improving the Use of Recycled Content Avient Corporation 38 39Avient CORPORATION • Inconsistent base color of recycled materials • Lightest color recycled material in high demand for all applications ($$) • Even with clear/transparent materials, color degrades over repeated processing Our Solutions • OpticaTM Toners and Super-concentrated colorants to reduce and mask recycled material discoloration • SmartHeatTM reduces heat history to minimize yellowing • Color Simulation Tool to assist with color space design CHALLENGES OPPORTUNITIES • Stabilization of color fluctuation driven by variable recycled polymer • In-line color correction to optimize customer manufacturing efficiency RECYCLE COLOR QUALITY RANGE Avient Corporation 39 1: Color Management Recycled Material Restricts Color Options With virgin material, we can design across a broad color spectrum The darker the recycled materials, the more color design freedom is restricted This bright yellow is not achievable with high concentrations of dark recycled materials Avient can provide customer guidance on maximum recycle content possible and color concentration required to achieve desired color Avient Corporation 40 Case Study with Brand Owner Recycled Resin = Discolored Base Virgin Resin = Clean Color Base Degree of base discoloration limits recycle content Avient Corporation 41 The Plus Factor Opportunity I N C R E A S E D U S E O F R E C Y C L E D M A T E R I A L R E Q U I R E S M O R E C O L O R A N T A N D A D D I T I V E S Avient Corporation 42 $100M + 2: Decontamination Recycled material feedstocks are contaminated • Feedstock variability supplies the recycle process • Insufficient washing at recycler • Residual labels and printing inks cause quality and NIAS issues • Unpleasant recycled material odor (in processing and the final application) • Clean, food grade, recycled material availability in high demand • Reliable decontamination to reduce NIAS concerns • Full odor removal Our Solutions • CESATM Laser Marking to eliminate contaminating printing inks, labels and glue • AAzureTM process aids and scavengers to enable food and beverage taste purity in PET packaging • ProsureTM range of formulations to enable NIAS compliance and security (customer peace of mind) CHALLENGES NIAS = Non Intentionally Added Substances OPPORTUNITIES Avient Corporation 43 44 3: Maintaining Mechanical Properties • Mechanical properties of recycled materials degrade after multiple heat cycles • Today's recycling protocols only focus on one recycle loop…in reality, there will be several • Legislation and brand owners are targeting higher recycled material ratio incorporation and full circularity • Polymer quality stability over multiple loops to deliver circular recyclability • Stress cracking of recycled bottles • Upgrading performance of lower quality recycled materials • Specification and guided selection amongst highly variable recycled materials Our Solutions • CESATM antioxidants and process aids to enhance physical properties • SmartHeatTM reduces heat history to minimize yellowing • rePrize™ for PET polymer chain repair and extension CHALLENGES OPPORTUNITIES Avient Corporation 44 45 Multi-material packaging is harder to recycle • Contamination of polymer streams • Issues in sorting • Issues in separation • Trend is to restrict multi-material systems in favor of mono-material constructions • Improve recyclability of PET gas barriers • Barrier system development for Polyolefins • Recyclable barrier systems for film and sheet Our Solutions • Portfolio of compatibilizers to enable multilayer constructions • AmosorbTM to extend beverage shelf life by scavenging oxygen through the bottle wall • CaptureTM to extend product shelf life through oxygen scavenging but without contaminating the bottle • Lactra SX TM to prevent light-induced oxidation in liquid dairy products stored at higher temperatures OPPORTUNITIES CHALLENGES Avient Corporation 45 4: Mono-Material Construction 46 Brand Owners require a consistent brand identity • Inconsistent quality streams pose a challenge to delivering homogeneous product quality and aesthetics to the consumer • Brands demand recycled content, but with color/property consistency • Recyclers are challenged to fulfill needs from brand owners and convertors • Specification and selection of recycled material grades for targeted applications • Simulation of recycled material performance in the end-use application • Leverage re-formulation expertise to provide a consistent packaging product (color and mechanical properties) Our Solutions Our Service and Color Expertise differentiate Avient and allow us to support customers throughout the entire design process • Design for use: Color matching, Color design options • Recycle lot selection • Improving mechanical properties • Improving material processing OPPORTUNITIES CHALLENGES Closer customer collaboration to support recycle efforts Avient Corporation 46 5: Consistent Recycle Material Quality 2016 2021E Growth in Sustainable Solutions *Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”) Revenue From Sustainable Solutions* $340M $930M Avient Corporation 47 Future Revenue Growth Assumptions 8-12% CAGR Avient Corporation 48 Healthcare Cathy Dodd High-Impact, High-Growth Industry Medical Equipment / Devices 33% Drug Delivery 19% Medical Supplies 18% Labware 14% Packaging 8% Remote Monitoring 5% $225 $380 $685 2010 2016 2021E Healthcare Submarkets (2021E) Track Record of Sales Growth Personal Wellness 3% ($ millions) Avient Corporation 49 Our Foundation W E A R E P O S I T I O N E D T O W I N Relationships Innovative Solutions Differentiated Services 50Avient Corporation Trends in Healthcare S H A P I N G I N N O V A T I O N & S O L U T I O N S Improved Wellness & Connectedness Globalization & Localization Increasing Life Expectancy Self Management & Self Administration Technology Driving Diagnostic & Remote Monitoring COVID-19 Protection Avient Corporation 51 • Deep, trusted customer relationships • Well-positioned and entrenched in the Healthcare supply chain • Broad & differentiated capabilities • Positioned to respond & execute quickly COVID - 19 Protection A V I E N T W A S S E T A N D R E A D Y Avient Corporation 52 Aging Population T R E A T I N G C H R O N I C C O N D I T I O N S Of the U.S. population is aged 65 or older… and this number is growing Suffer from one or more chronic health conditions Avient Corporation 53 Aging Population T R E A T I N G C H R O N I C C O N D I T I O N S Increasing Life Expectancy Cardiology • 47% of Americans having at least one of three major risk factors for heart disease Diabetes • 193 million people with Type 2 diabetes and will grow to 252 million by 2026 at a 5% CAGR Neurology • Neurological disorders are the second leading cause of death globally, second only to heart disease Avient Corporation 54 Connected Health E X P A N S I O N O F M E D I C A L W E A R A B L E D E V I C E S Improved Wellness & Connectedness Application Opportunities • Flexible components to provide design aesthetics & proper functionality • Robust designs to meet regulatory requirements and perform over long product lifecycles • Patient comfort to promote ongoing use Avient Corporation 55 Remote Patient Monitoring T R A N S L A T I N G D E V I C E S F R O M H O S P I T A L S E T T I N G S T O H O M E Technology Driving Diagnostic & Remote Monitoring Application Opportunities • Durable, chemically-resistant devices to withstand impact in a home environment and exposure to a variety of household cleaners • Miniaturization of devices to fit into limited space in the home, while maintaining maximum functionality • Innovative, user-friendly designs and long-term aesthetics to provide patients with easy-to-use, high-quality, attractive devices in the home Avient Corporation 56 Self Management & Self Administration E N A B L I N G P A T I E N T S T O M A N A G E H E A L T H Self Management & Self Administration Application Opportunities • Combination of rigid & flexible materials to realize design potential and optimize device functionality • Superior chemical resistance to cleaners, disinfectants, hand oils, UV rays, and drugs to extend life of device • Reduced abrasion between mating components to ensure proper dosing • Regulatory-approved colorant and additives to provide branding and drug identification Avient Corporation 57 Trends are Shaping Innovation Professional / Clinic Patient / Home Avient Corporation 58 Avient Design D I F F E R E N T I A T E D S E R V I C E • Global product development support from industrial design through engineering and product launch • Extensive material, manufacturing, industry and value chain knowledge • Human-centric design skill, aligning product innovations with ergonomic needs • Product tear-down capabilities to provide customers with product optimization and cost reduction insights • 3D-printed prototypes and samples to accelerate product development Avient Corporation 59 IDEAIDEA PROOF OF CONCEPT PROOF OF CONCEPT DESIGNDESIGN TOOLINGTOOLING EVALUATIONEVALUATION LAUNCH & DELIVERY LAUNCH & DELIVERY Accelerating Speed to Market with Avient design Avient Corporation 60 Avient Design A U T O I N J E C T O R 61Avient Corporation Avient Design 62 A U T O - I N J E C T O R T E A R - D O W N Defined haptics and soft touch Stringent regulatory requirements Drug contact, mechanical sensitivity for dosing accuracy Lasermarking and laserwelding compatible Strict change control Avient Corporation Avient Design 63 A U T O I N J E C T O R I N N O V A T I O N Avient Corporation Avient Design 64 A U T O I N J E C T O R I N N O V A T I O N Easy to use Safe Quality Protect Ingredients Compliant Temperature Management Avient Corporation 65 Medical Grade TPE Healthcare Colorants High-Density Polymer Laser weldable formulation Laser marking additives Lubricated polymers Avient Corporation Easy to use Safe Quality Protect Ingredients Compliant Temperature Management Avient Design A U T O I N J E C T O R I N N O V A T I O N 17,645 29,445 2021E 2025E Source: BCC Research, Nov. 2020 (LBs millions) Healthcare Growth Outlook Avient Corporation 66 8-10% CAGR Future Revenue Growth AssumptionsMarket for Medical Plastics Investor Day 2021 Break Avient Corporation 68 Composites Chris Pederson $74 $84 $216 $212 $260 $5 $10 $32 $41 $50 0 10 20 30 40 50 60 70 2017 2018 2019 2020 2021E • Prior investments in composites platform and outdoor high performance applications continue to pay off driving substantial growth in 2021 ($ in millions) Composites • Composites will also drive our ability to deliver future revenue growth in excess of GDP Avient Corporation 69 Spotlight: Growth in Composites Composite Material Design Avient Corporation 70 Materials Structure Mfg ProcessPart Properties Lower weight Corrosion resistance Fatigue performance Tailor-ability Design flexibility Composite Material Forms Avient Corporation 71 Manufacturing Costs Continuous Fiber Thermosets Continuous Fiber Thermoplastics Design Flexibility Continuous Fiber Thermosets Continuous Fiber Thermoplastics Discontinuous Fiber Thermoplastics Performance Performance Discontinuous Fiber Thermoplastics Composites Portfolio D I V E R S E C A PA B I L I T I E S A N D S O L U T I O N S S E R V I N G M A N U FA C T U R E R S A N D O E M S LFT Tapes Laminates/Panels Shapes Pultrusion Engineered Fibers Avient Corporation 72 Powersports & Outdoor Gear B E N E F I T S O F C O M P O S I T E S STRUCTURAL COMPONENTS Material Replacement • Weight Reduction • Temperature Resistance • Impact Resistance BODY PANELS Paint Replacement • Weight Reduction • Scratch Resistance ADVENTURE GEAR Fatigue Resistance • Lightweight • Temperature Resistance • Impact Resistance Avient Corporation 73 Industrial & Energy B E N E F I T S O F C O M P O S I T E S HIGH PRESSURE PIPE Burst Strength • Corrosion Resistance • Lighter Weight GPS TRACKABLE PALLETS Weight Reduction • Increased Load • Stiffness POWER INFRASTUCTURE Corrosion Resistance • Electrical Insulation • Weight Reduction Avient Corporation 74 $31 $48 $66 $119 2009 2013 2017 2021E ($ millions) Avient Corporation 75 Spotlight: Growth at Fiber-Line Revenue • Fiber-Line business acquired on January 2, 2019 for $120 million • Specialty portfolio of fiber-optic cable applications primarily serving telecommunications end-market • Deep formulation expertise, innovative culture and global commercial presence will accelerate growth related to 5G infrastructure build out Avient Corporation 76 5G Technology Matt Reinhardt Evolution of 5G M E E T I N G S I G N I F I C A N T L Y E X P A N D I N G C O N N E C T I V I T Y N E E D S Avient Corporation 77 How FAST IS 5G?
Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Reconciliation of EBITDA by Segment Year Ended December 31, 2019 Sales: Color, Additives and Inks $ 1,003.8 Specialty Engineered Materials 745.7 Distribution 1,192.2 Corporate and eliminations (79.0) Sales $ 2,862.7 Operating income: Color, Additives and Inks $ 147.4 Specialty Engineered Materials 83.7 Distribution 75.4 Corporate and eliminations (149.7) Operating income $ 156.8 Items below OI in Corporate: Other income, net $ 12.1 Depreciation & amortization: Color, Additives and Inks $ 42.7 Specialty Engineered Materials 29.5 Distribution 0.5 Corporate and eliminations 5.4 Depreciation & Amortization $ 78.1 EBITDA: Color, Additives and Inks $ 190.1 Specialty Engineered Materials 113.2 Distribution 75.9 Corporate and eliminations (132.2) EBITDA $ 247.0 EBITDA as a % of Sales: Color, Additives and Inks 18.9 % Specialty Engineered Materials 15.2 % Distribution 6.4 % 1 Reconciliation of Pro Forma EBITDA - Color, Additives and Inks Year Ended December 31, 2019 Sales: Color, Additives and Inks $ 1,003.8 Clariant Color pro forma adjustments(1) 1,118.6 Pro forma sales $ 2,122.4 Operating income: Color, Additives and Inks $ 147.4 Clariant Color pro forma adjustments(1) 72.9 Pro forma operating income $ 220.3 Depreciation & amortization: Color, Additives and Inks $ 42.7 Clariant Color pro forma adjustments(1) 60.3 Pro forma depreciation & amortization $ 103.0 EBITDA Color, Additives and Inks $ 190.1 Clariant Color pro forma adjustments(1) 133.2 Pro forma EBITDA $ 323.3 Pro forma EBITDA as a % of Sales 15.2 % (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 2009* 2010* 2011* 2012* 2013 2014 2015 2016** 2017 2018 2018*** 2019*** 2020 Net income from continuing operations attributable to Avient common shareholders $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6 $ 166.4 $ 173.5 $ 161.1 $ 87.7 $ 75.5 $ 152.7 Joint venture equity earnings, after tax (19.0) (14.7) (3.7) — — — — — — — — — — Special items, before tax(1) (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 23.8 32.9 59.5 58.7 61.7 66.2 Special items, tax adjustments(1) (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (15.9) (24.8) (25.3) (25.1) (5.9) (41.4) Adjusted net income from continuing operations attributable to Avient common shareholders $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 174.3 $ 181.6 $ 195.3 $ 121.3 $ 131.3 $ 177.5 Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1 80.4 80.4 77.7 92.1 Adjusted EPS attributable to Avient common shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.06 $ 2.21 $ 2.43 $ 1.51 $ 1.69 $ 1.93 * Historical results have been updated to reflect subsequent changes to accounting principle and discontinued operations, excluding any changes as a result of discontinued operations from the sale of the Designed Structures and Solutions segment (DSS) and the Performance Products and Solutions segment (PP&S). ** Pro Forma for sale of DSS. *** Pro Forma for sale of PP&S. *** Pro Forma for full year of the Clariant Color acquisition 2 Nine Months Ended September 30, Year Ended December 31, Reconciliation to Pro Forma Adjusted EBITDA 2020 2021 2020 2019 Net income from continuing operations – GAAP $ 59.1 $ 201.7 $ 133.8 $ 75.7 Income tax expense 22.5 51.8 5.2 33.7 Interest expense 55.3 57.8 74.6 59.5 Depreciation and amortization from continuing operations 77.3 107.7 115.1 78.1 EBITDA $ 214.2 $ 419.0 $ 328.7 $ 247.0 Special items, before tax 62.0 36.5 66.2 61.7 Interest expense included in special items (10.1) — (10.1) — Depreciation and amortization included in special items (2.5) (0.1) (3.2) — Adjusted EBITDA $ 263.6 $ 455.4 $ 381.6 $ 308.7 Clariant MB pro forma adjustments(1) 75.1 — 75.1 133.2 Pro forma adjusted EBITDA $ 338.7 $ 455.4 $ 456.7 $ 441.9 (1) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition Year Ended December 31, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient 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 (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 3 Year Ended December 31, 2019 Reconciliation of Pro Forma Adjusted Earnings per Share Avient Special Items Adjusted Avient Clariant MB Pro Forma Adjustments(1) Pro Forma Adjusted Avient 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 (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition Return on Invested Capital Year Ended December 31, 2006 Short term debt $ 5.2 Current portion of long term debt 22.5 Long term debt 567.7 Shareholder's equity 574.5 Invested capital $ 1,169.9 Cash 66.2 Current invested capital (net) $ 1,103.7 Adjusted operating income 87.5 Current tax rate 0.33 Return on invested capital 5.3 % Year Ended December 31, Reconciliation to Enterprise Value / Adjusted EBITDA 2011 2016 Net income from continuing operations – GAAP $ 172.6 $ 165.0 Income tax expense 26.1 57.3 Interest expense 33.7 59.8 Depreciation and amortization from continuing operations 57.5 105.9 EBITDA $ 289.9 $ 388.0 Special items, before tax (46.7) 35.3 SunBelt equity income (5.7) — Depreciation and amortization included in special items — (5.4) Adjusted EBITDA $ 237.5 $ 417.9 Enterprise value(2) $ 1,542.0 $ 3,763.0 Enterprise value / adjusted EBITDA 6.5 9.0 (2) - Enterprise value is defined as market capitalization plus net debt 4 AVNT 2021 Investor Day adfa.pdf AVNT 2021 Investor Day.pdf AVNT 2021 Investor Day.pdf AVNT 2021 Investor Day - Final.pdf 2021 Investor Day Recs v3 12.2 (002).pdf
https://www.avient.com/sites/default/files/2022-02/AVNT Q4 2021 Earnings Presentation_0.pdf
They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements.
We also monitor earnings (defined as net income from continuing operations) before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA (EBITDA before the impact of special items) as a supplement to our GAAP measures.
A reconciliation of these measures to their most directly comparable GAAP measures is provided in the tables below. 1 Reconciliation of EBITDA by Segment Three Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 2019 2018 Sales: Color, Additives and Inks $ 581.3 $ 525.8 $ 2,401.6 $ 1,502.9 $ 1,003.8 $ 1,046.5 Specialty Engineered Materials 228.2 190.6 918.9 708.8 745.7 645.8 Distribution 425.0 305.1 1,630.9 1,110.3 1,192.2 1,265.4 Corporate and eliminations (33.0) (24.5) (132.6) (79.9) (79.0) (76.7) Sales $ 1,201.5 $ 997.0 $ 4,818.8 $ 3,242.1 $ 2,862.7 $ 2,881.0 Operating income: Color, Additives and Inks $ 61.2 $ 57.5 $ 303.1 $ 180.8 $ 147.4 $ 158.5 Specialty Engineered Materials 28.8 30.4 132.0 94.4 83.7 72.3 Distribution 21.7 18.0 93.2 69.5 75.4 71.5 Corporate and eliminations (37.7) (40.9) (147.1) (155.4) (149.7) (123.7) Operating Income $ 74.0 $ 65.0 $ 381.2 $ 189.3 $ 156.8 $ 178.6 Items Below Operating Income in Corporate: Other income, net $ (5.4) $ 11.7 $ (1.3) $ 24.3 $ 12.1 $ (12.9) Depreciation & amortization: Color, Additives and Inks $ 26.4 $ 27.3 $ 105.7 $ 75.1 $ 42.7 $ 44.3 Specialty Engineered Materials 8.0 7.4 31.7 30.0 29.5 23.2 Distribution 0.2 0.3 0.8 0.7 0.5 0.7 Corporate and eliminations 3.6 2.8 7.7 9.3 5.4 4.4 Depreciation & Amortization $ 38.2 $ 37.8 $ 145.9 $ 115.1 $ 78.1 $ 72.6 EBITDA: Color, Additives and Inks $ 87.6 $ 84.8 $ 408.8 $ 255.9 $ 190.1 $ 202.8 Specialty Engineered Materials 36.8 37.8 163.7 124.4 113.2 95.5 Distribution 21.9 18.3 94.0 70.2 75.9 72.2 Corporate and eliminations (39.5) (26.4) (140.7) (121.8) (132.2) (132.2) EBITDA $ 106.8 $ 114.5 $ 525.8 $ 328.7 $ 247.0 $ 238.3 EBITDA as a % of sales: Color, Additives and Inks 15.1 % 16.1 % 17.0 % 17.0 % 18.9 % 19.4 % Specialty Engineered Materials 16.1 % 19.8 % 17.8 % 17.6 % 15.2 % 14.8 % Distribution 5.2 % 6.0 % 5.8 % 6.3 % 6.4 % 5.7 % 2 Reconciliation of Pro Forma Sales, Operating Income and EBITDA - Color, Additives and Inks Year Ended December 31, 2020 2019 2018 Sales: Color, Additives and Inks $ 1,502.9 $ 1,003.8 $ 1,046.5 Clariant Color pro forma adjustments(1) 540.4 1,118.6 1,209.8 Pro forma sales $ 2,043.3 $ 2,122.4 $ 2,256.3 Operating income: Color, Additives and Inks $ 180.8 $ 147.4 $ 158.5 Clariant Color pro forma adjustments(1) 45.0 72.9 80.3 Pro forma operating income $ 225.8 $ 220.3 $ 238.8 Depreciation & amortization: Color, Additives and Inks $ 75.1 $ 42.7 $ 44.3 Clariant Color pro forma adjustments(1) 30.1 60.3 61.2 Pro forma depreciation & amortization $ 105.2 $ 103.0 $ 105.5 EBITDA Color, Additives and Inks $ 255.9 $ 190.1 $ 202.8 Clariant Color pro forma adjustments(1) 75.1 133.2 141.5 Pro forma EBITDA $ 331.0 $ 323.3 $ 344.3 Pro forma EBITDA as a % of Sales 16.2 % 15.2 % 15.3 % Three Months Ended December 31, Year Ended December 31, Reconciliation to Adjusted EBITDA: 2021 2020 2021 2020 2019 Net income from continuing operations – GAAP $ 28.9 $ 74.7 $ 230.6 $ 133.8 $ 75.7 Income tax expense (benefit) 22.2 (17.3) 74.0 5.2 33.7 Interest expense 17.5 19.3 75.3 74.6 59.5 Depreciation and amortization from continuing operations 38.2 37.8 145.9 115.0 78.1 EBITDA $ 106.8 $ 114.5 $ 525.8 $ 328.6 $ 247.0 Special items, before tax 20.6 4.2 57.1 66.2 61.7 Interest expense included in special items — — — (10.1) — Depreciation and amortization included in special items (1.6) (0.70) (1.7) (3.2) — Adjusted EBITDA $ 125.8 $ 118.0 $ 581.2 $ 381.6 $ 308.7 Clariant Color pro forma adjustments(1) — 33.4 — 75.1 133.2 Pro forma adjusted EBITDA $ 125.8 $ 113.1 $ 581.2 $ 456.7 $ 441.9 Free Cash Flow Calculation December 31, 2021 Cash provided by operating activities 233.8 Capital expenditures (100.6) Free cash flow $ 133.2 3 Net Debt Calculation December 31, 2021 Total long-term debt, net $ 1,850.3 Unamortized discount and debt issuance cost 14.4 Short-term and current portion of long term debt 8.6 Total debt $ 1,873.3 Cash (601.2) Net debt $ 1,272.1 Three Months Ended December 31, 2021 Reconciliation of Adjusted Earnings per Share: Avient Special Items Adjusted Avient Sales $ 1,201.5 $ — $ 1,201.5 Operating income $ 74.0 $ 11.2 $ 85.2 Interest expense, net (17.5) — (17.5) Other income, net (5.4) 9.4 4.0 Income taxes (22.2) 3.4 (18.8) Net income from continuing operations attributable to Avient shareholders $ 29.8 $ 24.0 $ 53.8 Weighted average diluted shares 92.1 Adjusted EPS - excluding special items $ 0.58 Reconciliation of Adjusted EBITDA from continuing operations: Operating income and other income, net $ 68.6 $ 20.6 $ 89.2 Depreciation and amortization 38.2 (1.6) 36.6 EBITDA from continuing operations $ 106.8 $ 19.0 $ 125.8 EBITDA as a % of sales 10.5 % Three Months Ended December 31, 2020 Reconciliation of Adjusted Earnings per Share: Avient Special Items Adjusted Avient Sales $ 997.0 $ — $ 997.0 Operating income $ 65.0 $ 14.6 $ 79.6 Interest expense, net (19.3) — (19.3) Other income, net 11.7 (10.4) 1.3 Income taxes 17.3 (30.9) (13.6) Net income from continuing operations attributable to Avient shareholders $ 74.2 $ (26.7) $ 47.5 Weighted average diluted shares 92.1 Adjusted EPS - excluding special items $ 0.52 Reconciliation of Adjusted EBITDA from continuing operations: Operating income and other income, net $ 76.7 $ 4.2 $ 80.9 Depreciation and amortization 37.8 (0.7) 37.1 EBITDA from continuing operations $ 114.5 $ 3.5 $ 118.0 EBITDA as a % of sales 11.8 % (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 4 Year Ended December 31, 2020 Reconciliation of Pro Forma Adjusted Earnings per Share: Avient Special Items Adjusted Avient Clariant Color Pro Forma Adjustments(1) Pro Forma Adjusted Avient 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 Reconciliation of Pro Forma Adjusted EBITDA from continuing operations: Operating income and other income, net $ 213.6 $ — $ 56.1 $ 269.7 $ 45.0 $ — $ 314.7 Depreciation and amortization 115.1 (3.2) 111.9 30.1 142.0 EBITDA from continuing operations $ 328.7 $ 52.9 $ 381.6 $ 75.1 $ 456.7 EBITDA as a % of sales 12.1 % Year Ended December 31, 2019 Reconciliation of Pro Forma Adjusted Earnings per Share: Avient Special Items Adjusted Avient Clariant Color Pro Forma Adjustments(1) Pro Forma Adjusted Avient 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 Reconciliation of Pro Forma Adjusted EBITDA from continuing operations: Operating income and other income, net $ 168.9 $ — $ 61.7 $ 230.6 $ 72.9 $ — $ 303.5 Depreciation and amortization 78.1 — 78.1 60.3 138.4 EBITDA from continuing operations $ 247.0 $ 61.7 $ 308.7 $ 133.2 $ 441.9 EBITDA as a % of sales 11.1 % (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 5 Three Months Ended March 31, 2021 Reconciliation to Condensed Consolidated Statements of Income GAAP Results Special Items Adjusted Results Operating income $ 120.4 $ 2.4 $ 122.8 Income from continuing operations before income taxes $ 102.6 $ 2.4 $ 105.0 Income tax expense - GAAP (22.9) — (22.9) Income tax impact of special items — (0.9) (0.9) Tax adjustments — 1.1 1.1 Net income attributable to noncontrolling interests (0.4) — (0.4) Net income from continuing operations attributable to Avient shareholders $ 79.3 $ 2.6 $ 81.9 Net income / EPS $ 0.86 0.03 $ 0.89 Weighted-average diluted shares 92.2 92.2 92.2 Year Ended December 31, 2021 Reconciliation to Condensed Consolidated Statements of Income GAAP Results Special Items Adjusted Results Operating income $ 381.2 $ 47.8 $ 429.0 Income from continuing operations before income taxes $ 304.6 $ 57.1 $ 361.7 Income tax expense - GAAP (74.0) — (74.0) Income tax impact of special items — (13.0) (13.0) Tax adjustments — 5.9 5.9 Net income attributable to noncontrolling interests 0.2 — 0.2 Net income from continuing operations attributable to Avient shareholders $ 230.8 $ 50.0 $ 280.8 Net income / EPS $ 2.51 0.54 $ 3.05 Weighted-average diluted shares 92.1 92.1 92.1 Three Months Ended December 31, 2019 Year Ended December 31, 2019 Reconciliation of pro forma sales, operating income, and EBITDA: CAI Clariant Color Pro Forma Adjustments(1) Pro Forma CAI CAI Clariant Color Pro Forma Adjustments(1) Pro Forma CAI Sales $ 226.7 $ 263.5 $ 490.2 $ 1,003.8 $ 1,118.6 $ 2,122.4 Operating income $ 27.2 $ 13.2 $ 40.4 $ 147.4 $ 72.9 $ 220.3 EBITDA $ 37.9 $ 28.3 $ 66.2 $ 190.1 $ 133.2 $ 323.3 EBITDA as a % of sales 13.5 % 15.2 % (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 6 Year Ended December 31, 2020 Reconciliation of pro forma sales, operating income, and EBITDA: CAI Clariant Color Pro Forma Adjustments(1) Pro Forma CAI Sales $ 1,502.9 $ 540.4 $ 2,043.3 Operating income $ 180.8 $ 45.0 $ 225.8 EBITDA $ 255.9 $ 75.1 $ 331.0 EBITDA as a % of sales 16.2 % (1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition 7 AVNT Q4 2021 Earnings Presentation.pdf AVNT Q4 2021 Earnings Presentation.pdf 2.7.22 632pm IR Deck - AVNT-2021.12.31.pdf
https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202018.pdf
They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements.
Adjusted EPS attributable to PolyOne common shareholders is calculated as follows: 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 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 Joint venture equity earnings, after tax (19.0) (14.7) (3.7) — — — — — — Special items, before tax(1) (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 23.8 32.9 Special items, tax adjustments(1) (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (15.9) (24.8) Adjusted net income from continuing operations attributable to PolyOne common shareholders $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 174.3 $ 181.6 Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1 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 * 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. (1) Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel reduction programs, plant realignment costs, executive separation agreements; asset impairments; mark-to-market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non-recurring items; the effect of changes in accounting principles or other such laws or provisions affecting reported results and tax adjustments.
Tax adjustments include the net tax (expense) benefit from one-time income tax items, the set-up or reversal of uncertain tax position reserves and deferred income tax valuation allowance adjustments.
https://www.avient.com/sites/default/files/2022-06/Colorant Chromatics FEP UV Laser Marking Product Bulletin.pdf
For identification purposes or safety reasons, these cables often need to be marked.