https://www.avient.com/sites/default/files/2023-03/AVNT Q2 2022 Earnings Presentation - Website Version.pdf
S EC O N D Q UART ER 2022
RE S U LTS
$122
$134
$0.87
$0.98
Q2 2022 PERFORMANCE
(TOTAL COMPANY)
4
Sales Adjusted Operating Income
$1,235
$1,302
+ 5%
Adjusted EPS
+ 10% + 13%
(in millions) (in millions)
(+ 10% excluding FX) (+ 16% excluding FX) (+ 20% excluding FX)
Q2 2022 SEGMENT PERFORMANCE
5
CAI
$624
$649
($ in millions)
SEM Distribution
$86
$94
+ 4% + 9%
$404
$443
$24
$27
+ 10% + 13%
(1)
$241 $244
$37 $37
+ 1% Flat
(+ 10% excluding FX) (+ 16% excluding FX) (+ 6% excluding FX) (+ 3% excluding FX)
Q2 2021 $1,235 $122
Sustainable Solutions 17 7% 7
Healthcare 23 14% 5
Composites (ex Outdoor High Performance) 10 20% 4
Growth in Asia / LATAM 5 3% 1
Other 69 11% 5
Sub-total $1,359 10% $144
Outdoor High Performance Impact (9) (5)
Wage Inflation and Overtime (7)
Other Supply Chain Costs (2)
Clariant Color Integration Synergies 7
Incentives, Other Employee Costs 4
FX (48) (7)
Q2 2022 $1,302 5% $134
Q2 2022 SALES AND OPERATING INCOME
(TOTAL COMPANY)
6
Sales Growth Rate
Operating
Income$ millions
EBITDA
Q2 EBITDA BRIDGE
7
Price increases more than
offsets raw material and
supply chain impacts
Q2 2021 $ 159
Demand (29)
$ millions
CAI:
Price / Mix 87
Inflation (58)
SEM:
Price / Mix 36
Inflation (24)
Distribution:
Price / Mix 45
Inflation (41)
Net Price Benefit 45
Wage Inflation and Overtime (7)
Other Supply Chain Costs (2)
Clariant Color Integration Synergies 7
Incentives, Other Employee Costs 4
FX (7)
Q2 2022 $ 170
China Lockdowns / Russia Impact $ (14)
Outdoor High Performance (5)
Transportation (5)
8
Q2 '21 Adjusted EPS 0.87$
Color, Additives and Inks 0.11
Specialty Engineered Materials 0.01
Distribution 0.03
Corporate Costs 0.01
F/X (0.05)
Segment OI 0.11$
Interest Expense 0.03
Tax Rate (0.03)
Q2 '22 Adjusted EPS 0.98$
Q2 EPS BRIDGE
Key Updates
• Provided progress on 2030 Sustainability Goals
• Emphasized commitment to U.N.
https://www.avient.com/sites/default/files/AVNT Q1 2023 Earnings Press Release.pdf
In Europe and the Americas, customers remain
cautious and are managing inventory levels tightly while China’s re-opening is progressing at a
measured pace,” said Jamie A.
https://www.avient.com/sites/default/files/2023-03/AVNT Mar 2023 Earnings Presentation.pdf
$600 $592
$3.02 $3.04
FULL YEAR 2022 PERFORMANCE
(TOTAL COMPANY PRO FORMA)
19
Sales Adjusted EBITDA
$3,712 $3,653
-2%
Adjusted EPS
-1% + 1%
(in millions) (in millions)
(+4% excluding FX) (+5% excluding FX) (+9% excluding FX)
FULL YEAR 2022 SEGMENT PERFORMANCE
20
CAI
$2,402 $2,355
$409 $402
SEM Pro Forma
$1,308 $1,300
$278 $272
(+4% excluding FX)
- 2% -1%
(+5% excluding FX)
- 2%
(+4% excluding FX)
- 2%
(+2% excluding FX)
PRO FORMA FULL YEAR EPS BRIDGE
21
Pro Forma 2021 Adjusted EPS 3.02$
Foreign Currency (0.23)
Russia Import Sales (0.07)
Outdoor High Performance (0.13)
Color, Additives and Inks 0.18
Specialty Engineered Materials 0.24
Corporate Costs / Other 0.03
Pro Forma 2022 Adjusted EPS 3.04$
FULL YEAR EBITDA BRIDGE
(PRO FORMA TOTAL COMPANY)
22
$ millions
CAI:
Price / Mix 247
Inflation (176)
SEM:
Price / Mix 121
Inflation (77)
Net Price Benefit 115
Wage and Energy Inflation (47)
Clariant Color Integration Synergies 23
Incentives, Other Employee Costs 43
FX (34)
Full Year 2022 $592
Adjusted
Full Year 2021 $ 600
Demand (99)
Russia Import Sales (9) • Demand primarily impacted
by China lockdowns, 4th
quarter industrywide
destocking and declining
consumer sentiment
• Pricing outpaced inflation of
raw materials, wages and
energy
2023 G U IDA N CE
$125
$530
$0.55
$2.40
2023 GUIDANCE
24
Sales Adjusted EBITDA
$845
$3,450
Adjusted EPS
(in millions) (in millions)
CASH FLOW / BALANCE SHEET
25
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Restructuring actions to
streamline operations and
improve profitability, primarily
in Europe
($ millions) 2023E
Cash Flow from Operating Activities 350$
Less:
Run-Rate CapEx (110)
CapEx for IT System Upgrade (25)
CapEx for Restructuring (15)
Total CapEx (150)
Free Cash Flow 200$
Adjusted EBITDA 530$
Net Debt / Adjusted EBITDA 2.9x
K E Y G R O W T H D R I V E R S
A N D T R A N S F O R M E D
P O R T F O L I O
GROWTH DRIVERS: PROVEN SUCCESS
27 (1) Pro forma for the acquisition of Avient Protective Materials (APM)
COMPOSITES
$51
$84
$212
$668
HEALTHCARE
$108 $113
$231
$293
8-10%
ASIA/EMERGING REGIONS
$265
$358
$726
$830
$340
$455
$790
$1,175
SUSTAINABLE SOLUTIONS
8-12%
(1) (1)(1)
(Sales in $ millions)
#1 Color Formulator
Dyneema® - World’s Strongest
Fiber™
#1 in Composites applications
for outdoor high performance
#1 in Performance Inks
Customized solutions
140+ PhDs on staff
Rapid development of
innovative products
Extensive patent (2,500+)
portfolio
33% Vitality Index
Better-positioned toward stable,
high-growth end markets
Consumer, packaging,
healthcare and defense comprise
nearly 60% of sales
Agnostic to raw materials,
helping all customers achieve their
goals
Broad portfolio of diversified
sustainable solutions
90%+ of our innovation pipeline
invested in sustainable solutions
Long-term growth rate well
above GDP with expectations of
8-12%
LEVERAGING OUR TRANSFORMED PORTFOLIO
28
Building &
4% Telecom.
2022 PF
$3.65B
sales
Leading Positions Sustainable SolutionsDiversified IndustriesSpecialty Formulator
(1) 2022 Pro forma for the acquisition of Avient Protective Materials
(2) 2020 Pro forma for the acquisition of Clariant Color
(1)(2)
$340M
$455M
$790M
2016 2018 2020PF 2022PF
$1,175M
P EE R C O M PAR IS O N S
AVIENT IS ASSET LIGHT
Capex / Revenue
2023E (%)
Avient Specialty
Other Specialty /
Note: Avient reflects 2023 estimated revenue of $3,450 and estimated run-rate CAPEX of $110M.
30
2
4 4
5 5 5
6
7 7
FREE CASH FLOW CONVERSION
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/sites/default/files/2020-07/avient-abac-russian-200721.pdf
+1-866-765-9663
Телефон: +1-440-930-1000
Факс: +1-440 930 3064
Азиатско-Тихоокеанский
регион
Региональный офис в Шанхае,
Китай
2F, Block C 200 Jinsu Road
Pudong, 201206 Shanghai, China
Телефон: +86 (0) 21 6028 4888
Факс: +86 (0) 21 6028 4999
Южная Америка
Региональный офис в Сан-Паулу,
Бразилия
Av.
https://www.avient.com/sites/default/files/resources/PolyOne%25202017%2520Annual%2520Report.pdf
Suzhou, China 8.
Shanghai, China (4) Canada
Quebec, Canada Shanghai, China (3) 10.
Dongguan, China 11.
https://www.avient.com/sites/default/files/resources/PolyOne%25202012%2520Annual%2520Report.pdf
We also doubled the size of our Innovation
Center in Shanghai, China to serve our customers in
Asia even more effectively.
Suzhou, China (2) 9.
Remi de Napierville, 16.Mumbai, India
Quebec, Canada 17.Pamplona, Spain
15.Dongguan, China 18.Bangkok, Thailand
(15 manufacturing plants) 19.Pudong (Shanghai), China
Shenzhen, China (1)
20.Tianjin, China
21.Novo Hamburgo, Brazil
22.Berea, Ohio (5)
23.Richland Hills, Texas (5)
24.Bethel, Connecticut (5)
25.Barberton, Ohio (5)
26.Knowsley, United
Kingdom (5)
27.Eindhoven, Netherlands (5)
28.Suzhou, China (5)
29.Shanghai, China
30.Itupeva, Brazil (5)
31.Odkarby, Finland (5)
(31 manufacturing plants)
(1) Facility is not included in manufacturing plants total as it is also included as part of another segment.
(2) There are two manufacturing plants located at Suzhou, China.
(3) Facility is not included in manufacturing plants total as it is a design center/lab.
(4) Facility is not owned by PolyOne, however it is included in distribution facility total as it is a principal distribution location.
(5) Facility added in connection with the acquisition of ColorMatrix on December 21, 2011.
(6) Facility added in connection with the acquisition of Glasforms on December 19, 2012.
https://www.avient.com/sites/default/files/2021-01/w-9-clariant-plastics-coatings-usa-llc-july-20201.pdf
China income tax treaty allows an
exemption from tax for scholarship income received by a Chinese
student temporarily present in the United States.
China treaty (dated April 30, 1984) allows
the provisions of Article 20 to continue to apply even after the Chinese
student becomes a resident alien of the United States.
https://www.avient.com/sites/default/files/2023-09/Avient Sustainability Day 2023 - Website %289.19%29.pdf
Colgate-Palmolive, March 2021
Avient Corporation 27
12% CAGR
RECYCLED PLASTICS DEMAND GROWING DOUBLE DIGITS
Avient Corporation 28
Sources: McKinsey, Standard & Poor’s 2022
• Recycled plastics demand is expected to
grow at a 12% CAGR through 2030
• Demand is constrained by availability of
recycled content and will need investments
in both mechanical and chemical processes
• As recycled content becomes more
available, it is expected to make up 30% of
all plastics demand by 2040
Recycled
Virgin
Growing Demand for Recycled Content
3% CAGR
MAKING CARBON EMISSIONS COMMITMENTS
Avient Corporation 29
100% renewable
energy consumption
50% reduction in
product carbon
footprint by 2030
Reduce absolute
emissions by 25%
before 2030, net zero
Net zero carbon
emissions by 2050
Achieve carbon neutrality
globally by 2050
Achieve net zero
greenhouse gas emissions
across enterprise
Reduce carbon
emissions by 75%
by 2030
Achieve net zero
emissions by 2040
Reduce greenhouse gas
emissions by 0.5M tons by
2025; net zero by 2050
Reach net zero
greenhouse gas
emissions by 2040
Achieve zero emissions
across global operations
by 2040
Avient Corporation 30
STAKEHOLDERS’ GROWING INFLUENCE
Source: Deloitte 2022
Regulators
& government
77%
Board members
& management
Consumers & clients
NGOs
72%
Shareholders
& investors
71%
Competitors
& peers
Employees
Percent of Companies Feeling Pressure From…
Lenders
GOVERNMENT INFLUENCE CREATES OPPORTUNITIES
Avient Corporation 31
Reduction in carbon emissions per unit
of GDP from China by 2030
LOW CARBON FOOTPRINT MATERIALS
25X
Increase in offshore wind energy
capacity in the E.U. by 2030
INFRASTRUCTURE SOLUTIONS
Fuel efficiency increase in
2026 model year vehicles to
achieve 49 MPG
90%
Replacement of fossil-based
plastics with bio-based polymers
(Biden Administration)
LIGHTWEIGHTING SOLUTIONS BIOPOLYMERS
$42B
Investment in U.S. infrastructure
requiring 100% of fiber optic cable to
be U.S.
sourced (BEAD)
FIBER OPTIC SOLUTIONS
Sources: European Commission: Energy; People’s Republic of China National Development
and Reform Commission; U.S.
https://www.avient.com/sites/default/files/2022-08/Avient CDP_Climate_Change_Questionnaire_2022.pdf
Argentina
Belgium
Brazil
Canada
Chile
Avient CDP Climate Change Questionnaire 2022 Friday, July 29, 2022
3
China
Colombia
Finland
France
Germany
Guatemala
Hungary
India
Indonesia
Ireland
Italy
Luxembourg
Malaysia
Mexico
Netherlands
New Zealand
Pakistan
Peru
Poland
Saudi Arabia
Singapore
South Africa
Spain
Sweden
Taiwan, China
Thailand
Turkey
United Kingdom of Great Britain and Northern Ireland
United States of America
Viet Nam
C0.4
(C0.4) Select the currency used for all financial information disclosed throughout your
response.
The first is a more
conservative scenario that includes a carbon price of $20/metric ton in countries or
regions where there is existing legislation (such as the EU, Canada, China, and the US).
No
Country/area
China
Consumption of electricity (MWh)
37,996.01
Consumption of heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
37,996.01
Is this consumption excluded from your RE100 commitment?
https://www.avient.com/sites/default/files/resources/Polyone%2520AR.pdf
Tianjin, China 1.
Shenzhen, China 11.
Suzhou, China 12.