https://www.avient.com/sites/default/files/2023-09/Avient Sustainability Day 2023 - Website %289.19%29.pdf
Avient does not provide reconciliations of forward-looking non-GAAP financial measures, such as outlook for Adjusted EBITDA and Free Cash Flow, to the most comparable GAAP financial measures on a forward-looking basis because Avient is unable to provide a meaningful or accurate
calculation or estimation of reconciling items and the information is not available without unreasonable effort.
DISCLAIMER
Avient Corporation 3
Avient Corporation 4
Welcome
Bob Patterson
Chairman, President, and Chief Executive Officer
INTRODUCTION
Sustainability for a Better Tomorrow
Jamie Beggs
Senior Vice President and Chief Financial Officer
Avient Corporation 5
WE ARE A FORMULATOR
CUSTOM
FORMULATION
Avient Corporation 6
Avient Corporation 7
WE ARE INNOVATORS
2,500+
ACTIVE PATENT
FILINGS WORLDWIDE
1,100+
RESEARCH AND
DEVELOPMENT ASSOCIATES
>85% Stage-gate technology projects enable sustainable solutions
INDIA INNOVATION CENTER
33%
2022 VITALITY
INDEX
140+
MATERIAL SCIENCE
PhD ASSOCIATES
Avient Corporation 8
3% 3%
5%
Avient Specialty Formulators Other Specialty /
Chemical Companies
CAPEX / Revenue
2023E
Global footprint enables greater flexibility to exceed
needs of customers and deliver localized technical
and formulation expertise
35
9
36
24
Manufacturing Locations by Region
WE ARE ASSET LIGHT
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA
Avient Corporation 9
Asset-light flexibility
enables more nimble
manufacturing capabilities
and lower overhead
Periods of economic
weakness have driven
higher levels of cash
generation due to working
capital improvement
PROVEN TRACK RECORD OF HIGH FREE CASH FLOW CONVERSION
78%
78%
80% 80%
81%
78%
84%
83%
80%
79%
50%
55%
60%
65%
70%
75%
80%
85%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E
0
50
100
150
200
250
300
350
400
Fr
ee
C
as
h
Fl
ow
C
on
ve
rs
io
n
Fr
ee
C
as
h
Fl
ow
FC F $ AVNT FC F Conver si on % S&P F CF Conversion %
2 Recent Divestitures - Combined $1.7B in Proceeds
PORTFOLIO EVOLUTION
Avient Corporation 10
Combined $3.6B Investment in Acquisitions Since 2016
Color Business
Distribution
2016 2022
PORTFOLIO TRANSFORMATION
7%
46%
66%
87%
100%
0%
20%
40%
60%
80%
100%
2005 2010 2015 2020 2023
%
o
f A
dj
us
te
d
EB
IT
D
A
Commodity JVs Distribution Performance Products & Solutions Specialty Businesses
Adjusted EBITDA from Specialty Applications
Avient Corporation 11
END MARKET TRANSFORMATION
Packaging
Consumer
Healthcare
Defense
Avient Corporation 12
10%
19%
8%
23%
4%
7%
7%
2006 2023E
Other
Industri
es
78%
Healthcare
Consumer
Packaging
22%
56%
14%
10%
43%
9%
2006 2023E
Reduced Exposure to Cyclical End Markets End Market Diversification
Transportation
Building &
Construction
57%
19%
Defense
IMPROVING PROFITABILITY AND EXPANDING MARGINS
Avient Corporation 13
Adj.
Packaging and
Packaging Waste Directive)
RECYCLE SOLUTIONS
Sources: UN Environment Programme; Deloitte; McKinsey & Company;
European Commission: Environment
SOLVING CHALLENGES IN KEY END MARKETS
Avient Corporation 33
Transportation
Lightweighting
Recycle solutions
VOC reduction
Consumer
Recycle solutions
Lightweighting
Carbon footprint
Healthcare
Carbon footprint
Bio-based content
Eco-conscious
Packaging
Recycle solutions
Lightweighting
Food waste reduction
Sustainable
Infrastructure
Eco-conscious
Carbon footprint
Resource conservation
HOW AVIENT INNOVATION ENABLES SUSTAINABLITY
Avient Corporation 34
Solutions to increase recycled
content and minimize plastic waste
Solutions to reduce weight and
energy consumption
Solutions to preserve and protect
natural resources & human life
HOW WE ENABLE SUSTAINABILITY
Renew
Michael Garratt
Senior Vice President, President of Color, Additives and Inks – EMEA
Avient Corporation 35
RENEW
Avient Corporation 36
KEY CUSTOMER CHALLENGES:
• Meet Aggressive Sustainability Goals - While brand owners have made
strong, public sustainability commitments – many are currently trailing far
behind goals
• Develop Strategies to Minimize Plastic Waste - Plastic waste remains
a global priority with consumers and legislatures – forcing brand owners to
implement tangible mitigation strategies
• Increase Post Consumer Recycle (PCR) Utilization & Post
Consumer Recycle Availability - Increasing the use of PCR is far more
challenging than many companies had anticipated
• Meet Legislation Requirements - Legislatures are drafting financial
penalties for companies unable or unwilling to meet post-consumer recycled
content targets
Solutions to increase
recycled content and
minimize plastic waste
PLASTICS ARE PART OF THE SOLUTION
Avient Corporation 37
Source: Franklin Associates / American Chemistry Council
PLASTIC ALTERNATIVE PACKAGING (GLASS + ALUMINUM + PAPER)
2x More energy
3x More greenhouse gas emissions
5x More waste
6x More waterWater
Waste
Emissions
Energy
BRAND OWNER PROGRESS AGAINST COMMITMENTS
39%
29%
37%
16%
25%
11%
11%
6%
19%
7%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%
Brand Owner 1
Brand Owner 2
Brand Owner 3
Brand Owner 4
Brand Owner 5
Brand Owner 6
Brand Owner 7
Brand Owner 8
Brand Owner 9
Brand Owner 10
Percent Recycled Plastic Used
Progr ess through 2022
Gap t o r ea ch 2025 targets
Source: Ellen MacArthur Foundation 2022
Avient Corporation 38
Color
Management
Maintaining
Mechanical
Properties
Decontamination
Mono-Material
Construction
Consistent Quality
TOP 5 GAPS TO RECYCLE CONTENT UTILIZATION
Avient Corporation 39
Avient Corporation 40
Food & Beverage Packaging
2022 Revenue: $43M
Taste and Odor Management
ColorMatrix™ AAnchor Scavenger
• Improves recyclability
• Reduces regulatory risk from migration issues
75%
ACETALDEHYDE REDUCTION Recyclable Oxygen Barrier
ColorMatrix™ Capture ™ Oxygen Scavenger
• Protects recyclate - maintains clarity with no
discoloration
• Enables higher rPET content utilization
rPET UTILIZATION
Food & Beverage Packaging
2022 Revenue: $88M
PCR Performance Additives
ColorMatrix™ SmartHeat™
• Lowers energy use - CO2 Emissions
• Reduces yellowing and thermal instability
• Enables increased use of rPET
• Minimal impact on part color
35%
LOWER CARBON EMISSIONS
THINNER WALLS
Reduced Wall Thickness Packaging
ColorMatrix™ Ultimate™UV Light Barrier Stabilizer
Cesa™ Light Additives
• Protects ingredients from UV degradation
• Enables reduced wall thicknesses
• No negative effect on recycling
Increased Recycle Content
ColorMatrix™ Process Aid and Toner for
Recycled PET (rPET)
• Improves ability to recycle PET
• Enables higher percentages of recycled content
• Provides superior aesthetics
• Prevents degradation of physical properties
ENHANCES RECYCLING
Avient Corporation 41
Avient Corporation 42
Design for Recycling
CycleWorks™ Center for Mechanical Recycling
• Recycling trials and field testing
• Solutions evaluation and screening
• Customer collaboration
EXPANDS PCR USAGE
PCR Color Prediction Service
• Enables use of lower-quality PCR
• Predicts achievable colors
• Increases PCR utilization rates
• Helps brands to achieve PCR usage goals
85%
CONSUMERS:
CHOOSE BASED ON COLOR
CycleWorks™ Center
Milan, Italy
Additives for Recycling
2022 Revenue: $50M
Stabilization During Recycling
Cesa™ A4R Additives for Recycling
• Enables multi-loop recycling
• Stabilizes recyclate during processing
• Reduces discoloration, gels, and black spots
100%
PCR UTILIZATION
ENABLES
Personal Care Packaging
New Product
Avient Corporation 43
Bio-Based Phone Case
reSound™ OM BIO-based Thermoplastic Elastomers
• Derived from non-fossil-based raw materials
• Good property retention and UV resistance
• Easily colorable
40%
BIO-BASED CONTENT
Avient Corporation 44
High PCR Content Razor
reSound™ Recycled Thermoplastic Elastomers
• Excellent processability
• Easily colorable
62%
RECYCLE CONTENT
Consumer
2022 Revenue: $1M
Carbon Footprint Analysis
Carbon Footprint Mapping Service
• Provides input metrics for independent brand
carbon footprint calculations
• Aligns with a defined ISO standard, certified by
TUV Rhineland
ENABLES
CARBON AWARENESS
Avient Corporation 45
Consumer
2022 Revenue: $1M
Portable Power Station
Nymax™ Recycled Nylon
• Recycle content up to 60%
• Excellent weathering performance
• Reduces weight
60%
RECYCLE CONTENT
Swim Goggles
reSound™ BIO Thermoplastic Elastomers
• Easily colorable
• Performs like traditional TPE
35 - 70%
BIO-RENEWABLE CONTENT
Avient Corporation 46
Consumer
2022 Revenue: $3M
Off Road Vehicle Structural Components
Nymax™ REC Reinforced Nylon
• Replaces steel/aluminum
• Excellent fatigue resistance
INCORPORATES
RECYCLE CONTENT
CUSTOMER
TESTIMONIALS
Avient Corporation 47
“Avient’s bio-circular materials for our Biofuse 2.0 goggles are a real game changer that
will set Speedo apart from the competition - and will support our aim of reducing
environmental impact.”
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Morgan%2520Stanley%2520Conference.pdf
Below is a
reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP.
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
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.
2
Adjusted EBITDA and net debt to adjusted EBITDA is calculated as follows:
(In millions)
Year Ended December
31, 2017
Income from continuing operations, before income taxes $ 212.3
Interest expense, net 60.8
Depreciation and amortization 82.8
Special items impact on income from continuing operations, before income taxes(1) 32.9
Adjusted EBITDA $ 388.8
Senior secured revolving credit facility $ 56.5
Senior secured term loan due 2022 637.5
Total Secured Debt 694.0
Less: Cash and cash equivalents (243.6)
Net Secured Debt $ 450.4
Short-term and current portion of long-term debt $ 32.6
Long-term debt 1,290.9
Total Debt 1,323.5
Less: Cash and cash equivalents (243.6)
Net Debt $ 1,079.9
Total Secured Debt / Adjusted EBITDA 1.8
Net Secured Debt / Adjusted EBITDA 1.2
Total Debt / Adjusted EBITDA 3.4
Net Debt / Adjusted EBITDA 2.8
(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.
https://www.avient.com/sites/default/files/resources/8.31.19%2520Investor%2520Presentation.pdf
Below is a
reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP.
Adjusted EPS attributable to PolyOne common shareholders is calculated as follows:
2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018
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
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
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)
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 $ 195.3
Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1 80.4
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
* 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
https://www.avient.com/sites/default/files/resources/Gabelli%2520Conf%2520-%2520POL%2520IR%2520Presentation%2520wNon%2520GAAP%2520Reconciliation%252003%252026%252015.pdf
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.
Strong performance demonstrates that our strategy and execution
are working
Megatrends and emerging opportunities align with our strengths
Innovation and services provide differentiation, incremental pricing
power, and competitive advantage
Strong and proven management team driving growth and
performance
Addressable market exceeds $40 billion
PolyOne Corporation Page 17
Appendix
PolyOne Corporation Page 18
+25%
$262
$320
$200
$275
$350
2013 2014
Adjusted Operating Income
(in millions)
+22%
2014 Financial Highlights
All of our segments delivered both
operating income and margin
expansion during the year
Our specialty businesses
achieved record levels of profits
and profitability this year
Achieved 21st consecutive
quarter, or over five years, of
strong, double-digit adjusted EPS
growth
+37%
$1.31
$1.80
$1.00
$1.50
$2.00
2013 2014
Adjusted EPS
$195
$242
$150
$200
$250
2013 2014
Specialty Operating Income
(in millions)
PolyOne Corporation Page 19
Appliances
2%
Building &
Construction
12%
Consumer
7%
Electrical &
Electronics
1%
Healthcare
6%
Industrial
14%
Packaging
31% Textiles
7%
Transportation
8%
Wire & Cable
12%
1.7%
4.6% 5.1% 5.5%
7.2% 8.1%
9.7%
12.2% 12-16%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Operating Income % of Sales
At a Glance
Global Color, Additives and Inks
2014 Revenues: $0.9 Billion Solutions
Expanding Profits 2014 Revenue by Industry Segment
14.7%
Target
United States
44%
Europe
36%
Canada
2%
Asia
12%
Latin America
6%
PolyOne Corporation Page 20
Appliances
4% Building &
Construction
3%
Consumer
18%
Electrical &
Electronics
16%
Healthcare
12%
Industrial
8%
Packaging
5%
Transportation
20%
Wire & Cable
12%
At a Glance
Global Specialty Engineered Materials
2014 Revenues: $0.6 Billion Solutions
2014 Revenue by Industry Segment Expanding Profits
1.1% 1.3%
3.4%
5.1%
9.6%
8.0%
8.6%
9.3%
12-16%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Operating Income % of Sales
Target
12.1%
United States
44%
Europe
33%
Canada
2%
Asia
19%
Latin America
2%
PolyOne Corporation Page 21
Appliances
2% Building &
Construction
8%
Consumer
5%
Healthcare
6%
Industrial
23%
Packaging
27%
Transportation
30%
United States
96%
Canada
4%
At a Glance
Designed Structures and Solutions
Solutions 2014 Revenues: $0.6 Billion
Expanding Profits 2014 Revenue by Industry Segment
1.4%
5.6%
7.3%
8-10%
2012 2013 2014 2015
Operating Income % of Sales
Target
PolyOne Corporation Page 22
Appliances
8%
Building &
Construction
33%
Consumer
5% Electrical &
Electronics
3%
Healthcare
1%
Industrial
11%
Packaging
5%
Transportation
18%
Wire & Cable
16%
5.5%
6.9%
3.8% 3.6%
5.5%
4.3%
6.3%
7.2%
2006 2007 2008 2009 2010 2011 2012 2013 2014
Operating Income % of Sales
At a Glance
Performance Products and Solutions
Solutions
Expanding Profits
2014 Revenues: $0.8 Billion
9-12%
Target
2014 Revenue by Industry Segment
2015
7.7%
United States
80%
Canada
14%
Asia
2%
Latin America
4%
PolyOne Corporation Page 23
Appliances
6%
Building &
Construction
5%
Consumer
13%
Electrical &
Electronics
6%
Healthcare
23%
Industrial
15%
Packaging
4%
Transportation
25%
Wire & Cable
3%
2.6%
3.0%
3.5%
4.0%
4.6%
5.6%
6.4% 5.9%
6 - 7.5%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Operating Income % of Sales
15%
52%
2006 2014
At a Glance
Distribution
*ROIC is defined as TTM adjusted OI divided by the sum of average
debt and equity over a 5 quarter period
Key Suppliers 2014 Revenues: $1.1 Billion
ROIC* Expanding Profits
6.1%
Target
http://www.polyone.com/Pages/VariationRoot.aspx
PolyOne Corporation Page 24
2 lbs Plastic
=
3 lbs aluminum
or
8 lbs steel
or
27 lbs glass
33% less material by weight
than aluminum
75% less material by weight
than steel
93% less material by weight
than glass
Requires 91% less energy to
recycle a pound of plastic versus
a pound of paper
Source: SPI: Sustainability and the Plastics Industry
Plastics: Key to Future Sustainable Development
PolyOne Corporation Page 25
Commitment to Operational Excellence
81%
93%
2006 2014
16.2%
9.9%
2006 2014
On-Time Delivery
Working Capital % of Sales
5%
43%
2006 2014
Percent of Associates Trained in LSS
Four consecutive years – CFO Magazine
Best Working Capital Management in the
chemical industry
World’s Best Business
Process Excellence
Program in 2012*
103 trained Black Belts
247 trained Green Belts
127 trained Kaizen Leaders
World’s Best Start-up
Program for Lean Six Sigma
Deployment in 2009*
*Both awards received from International Quality and Productivity Center
PolyOne Corporation Page 26
Prototype Frame
Opportunity
Scale-up &
Test Market
Build
Business Case
Commercial
Launch
Phase
1
Phase
2
Phase
3
Phase
4
Phase
5
4
11
5
10
6
9
3 4 2
15
9
1
10
4
Breakthrough
Platform
Derivative
A Rich Pipeline of Opportunity
Number of Projects 25 14 19 17 18 93
Addressable Market
($ millions)
TBD TBD $800 $450 $450 $1,700
PolyOne Corporation Page 27
Application Examples
PolyOne Corporation Page 28
$1.5 billion attractive, growing market
Additives improve performance and reduce cost
through light-weighting, reduced waste, faster
cycle times, and extended shelf life of finished
product
Aligned with megatrend of protecting the
environment:
Sustainability benefits include lower
package weight and improved recyclability
of package at end of use
Market Opportunity
Leading Global Supplier of Additives In Fast Growing PET Market
Shelf-life extension
Greater product
consistency
Recyclability and
reduced carbon
footprint
Color and Special
Effects
Weight reduction
Enhanced product
aesthetics
High heat resistance
4% 4%
8%
9% 9%
10%
11%
14%
Western
Europe
North
America
South
America
MEA Easter
Europe
Asia
Pacific
China India
PET 2008-13P CAGR
PET Bottling Technology
PolyOne Corporation Page 29
• Includes formulation and
consultative services to assist
manufacturers and brand owners in
positively identifying their finished
goods
• Protects brand equity & consumer
welfare
• Reduces exposure to unwarranted
recall expenses
• Secures supply chain integrity –
support for safe expansion into new
geographies
Authentication Technology
PolyOne Corporation Page 30
• Color harmonization across
15 unique color-and-polymer
combinations
• Eliminated need for multiple pre-
colored materials
• Reduced Land Rover’s working
capital
Range Rover Evoque Interior
PolyOne Corporation Page 31
• Reduced health and
environmental impact
• System cost reduction
• Radiation-shielding
performance
• Parts consolidation
• Design freedom
CT Scanner
PolyOne Corporation Page 32
Metal Replacement Solutions
• Replaces metal in LED lighting
• Extends LED durability and life
span eliminating hot spots
• Greater design flexibility with
fewer parts
• Weight reduction
• Simplifies manufacturing and
lowers total production cost
PolyOne Corporation Page 33
Next Generation Solar Charger
• Ginkgo Solar Tree charger utilizing our
unique reSound™ material
• reSound™ is a durable material
consisting of 50% bio-derived plastic
and 50% traditional petroleum-based
plastic
• Use of reSound™ reduced the carbon
footprint for this product by 35%
• reSound™ Is classified as a PolyOne
Sustainable SolutionSM PolyOne Sustainable
SolutionSM
PolyOne Corporation Page 34
High-Barrier Packaging Containers
• Capability to extrude up to 13
layers
• Strong oxygen and moisture
vapor transmission protection
• Can be made symmetrical or
asymmetrical to meet
customized needs of broad
variety of applications
• Barrier protection and superior
organoleptic properties
PolyOne Corporation Page 35
Aerospace Applications
• Leading provider of specialty materials
for the aerospace industry
• Typical applications
Mil-spec aircraft windows, canopies,
windscreens, instrument panels,
wingtip lenses
Interior – gallery furnishings, tray
tables, arm rests, trim strips, joint/edge
coverings
• Benefits:
High impact strength
Resistant to UV rays
Flame and smoke compliance
Easy to clean with aggressive cleaners;
anti-microbial grades available
Range of sizes, thicknesses, colors, etc.
1
Schedule I
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(Dollars in millions, except per share data)
Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented
in accordance with U.S.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Seaport%2520Global%2520Transports%2520%2526%2520Industrials%2520Confer....pdf
Below is a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP for
each fiscal year end.
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
https://www.avient.com/sites/default/files/resources/Investor%2520Presentation%2520May19.pdf
Below is a
reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP.
Adjusted EPS attributable to PolyOne common shareholders is calculated as follows:
2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018
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
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
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)
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 $ 195.3
Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1 80.4
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
* 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
https://www.avient.com/sites/default/files/2021-05/avnt-first-quarter-2021-earnings-presentation.pdf
The Company does not provide reconciliations of forward-looking non-GAAP financial measures, such as outlook for adjusted EBITDA, adjusted earnings per share, adjusted operating income and free cash flow, to the most
comparable GAAP financial measures on a forward-looking basis because the Company is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without
unreasonable effort.
Free cash flow conversion calculated as (EBITDA – Capex) / EBITDA
Median: 84% Median: 77%
H I G H F R E E C A S H F L OW
C O N V E R S I O N
Avient reflects 2021 estimated EBITDA of $560M and excludes one-time synergy capture CAPEX ($20M)
Source: Peer data per Bloomberg market data as of April 27, 2021
87 89 87 86
82 81
76
88 87
84
82 81
78 77 77 77 76 73
70
69
50
19
A
vi
e
n
t
K
W
R
P
P
G
R
P
M
A
V
Y
F
U
L
G
C
P
F
M
C
IF
F
H
X
L
U
N
V
R
E
C
L
A
S
H
C
E
B
N
R
F
O
E
E
M
N
G
R
A
H
U
N
K
R
A
S
C
L
A
L
B
Source: Peer data per Bloomberg market data as of April 27, 2021
Total Enterprise Value / 2021E EBITDA
Our current valuation with updated
guidance implies an EBITDA multiple
that is below specialty formulator
peers and the majority of our
chemical peers.
https://www.avient.com/sites/default/files/2021-03/avient-march-ir-fermium_0.pdf
The Company does not provide reconciliations of forward-looking non-GAAP financial measures, such as outlook for adjusted EBITDA, adjusted earnings per share, adjusted operating income and free cash flow, to the
most comparable GAAP financial measures on a forward-looking basis because the Company is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available
without unreasonable effort.
Free cash flow conversion calculated as (EBITDA – Capex) / EBITDA
Median: 84% Median: 77%
H I G H F R E E C A S H F L OW
C O N V E R S I O N
Avient reflects 2021 estimated EBITDA of $510M and excludes one-time synergy capture CAPEX ($20M)
Source: Peer data per Bloomberg market data as of March 12, 2021
85
89
86 86
82 80
76
89
85 83 82 81
78 77 77 76 75 73
70 69
49
19
A
vi
e
n
t
K
W
R
P
P
G
R
P
M
A
V
Y
F
U
L
G
C
P
F
M
C
IF
F
H
X
L
U
N
V
R
E
C
L
A
S
H
B
N
R
F
O
E
E
M
N
C
E
G
R
A
H
U
N
K
R
A
S
C
L
A
L
B
Source: Peer data per Bloomberg market data as of March 12, 2021
Total Enterprise Value / 2021E EBITDA
Our current valuation implies an
EBITDA multiple that is below
specialty formulator peers and some
of our more highly valued chemical
peers.
https://www.avient.com/sites/default/files/2022-11/AVNT Q3 2022 Earnings Presentation - Website Final.pdf
When showing constant dollar figures on GAAP and non-GAAP financial measures, the foreign exchange impact is calculated by using current foreign exchange rates and applying them to the prior period results.
Avient does not provide reconciliations of forward-looking non-GAAP financial measures, such as outlook for Adjusted EBITDA, Adjusted Earnings Per Share, Adjusted Operating Income and Free Cash Flow, to the most comparable GAAP financial
measures on a forward-looking basis because Avient is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort.
https://www.avient.com/sites/default/files/2022-03/AVNT Mar 2022 Presentation.pdf
The Company does not provide reconciliations of forward-looking non-GAAP financial measures, such as outlook for Adjusted EBITDA, Adjusted Earnings Per Share, Adjusted Operating Income and Free Cash Flow, to the most
comparable GAAP financial measures on a forward-looking basis because the Company is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without
unreasonable effort.
Free cash flow conversion calculated as (EBITDA – Capex) / EBITDA
H I G H F R E E C A S H F L OW
C O N V E R S I O N
Avient reflects 2021 estimated EBITDA of $635M and estimated CAPEX of $90M (excludes IT system upgrade of $25M and synergy capture CAPEX of $20M)
Source: Peer data per Bloomberg market data as of February 15, 2022
86
89
85
80
76 76
89
85
79 78 76 76 76
70 69
63
8
A
vi
e
n
t
K
W
R
P
P
G
F
U
L
A
V
Y
R
P
M
F
M
C
U
N
V
R
H
U
N
B
N
R
H
X
L
E
C
L
C
E
A
S
H
E
M
N
S
C
L
A
L
B
Source: Peer data per Bloomberg market data as of February 15, 2022
Total Enterprise Value / 2022E EBITDAWith the Clariant Color business
acquisition and divestment of the
PP&S business, our exposure is
now concentrated in less-cyclical
and high-growth markets.