https://www.avient.com/sites/default/files/Avient Climate Change Scenario Analysis Summary 2022.pdf
Avient Climate-related Scenario Analysis Summary
SCOPE & TIME HORIZON
AVIENT SCENARIO NET ZERO FUTURE PLEDGING PROGRESS STEADFAST POLICY
CONVENTION 1.3-1.5°C 1.9-2.3°C 2.4-2.8°C
TRANSITION RISK Net Zero Emissions Scenario Announced Pledges Scenario Stated Policies Scenario
(IEA WEO 2021
1
scenarios) (NZE) | 1.4°C (APS) | 2.1°C (STEPS) | 2.6°C
Emissions peak at 2050 and slowly decline through 2100 Emissions continue to rise beyond 2100 at slower rates Emissions continue to rise beyond 2100 at current rates
BUSINESS
IMPLICATIONS
Increased transition risk:
Business impacted by climate policies, carbon prices, market
pressures and technological advancements
Increased physical risk:
Business impacted by direct damages and indirect discruption
assocated with severe changes in climate driven weather events
· Highly regulated policy environment · Moderate policy regulation · Few changes to current policy settings
· Ambitious; net zero commitments achieved at most all
levels
· Government commitments and National Determined
Contributions are achieved
· Not all stated commitments are achieved
· Improved air pollution in advanced and emerging market
& developing economies
· Rising air pollution levels especially in emerging market
and developing economies
· Doubling of the frequency of extreme heat events by 2050
and 120% increase in intensity & rising air pollution levels
especially in emerging market and developing economies
· Expectation of signifcant capital allocation for innovative
product design, energy efficiency investments, and clean
electrification of operations
· Additional levels of R&D investment will be required to
contribute to and attain announced commitments
Additional
renewable energy will still be needed in Europe to offset the related grid emissions as will we also need to identify similar outlets in the Americas and Asia Pacific
https://www.avient.com/sites/default/files/2020-09/crtm-panel-product-bulletin-2020.pdf
sq. ft.)
0.54" 1.2
0.75" 1.4
2.24" 3.1
CRTM PANEL PROPERTIES
Additional features include:
• Material and design flexibility
• �Large-scale production with in-line
CNC machining
• Class-A FS&T resin systems
• Product design guidance
MARKETS AND END-USE APPLICATIONS
CRTM composite panels are ideal for use in
markets where metal skin-over-frame or hand-laid
composite sandwich panels are currently used.
https://www.avient.com/sites/default/files/2020-10/composites-innovation-cell-program-bulletin_0.pdf
Avient Advanced Composites – Polystrand
8375 Highfield Parkway
Englewood, CO 80112
303.515.7700
TESTING SERVICES
In-house testing capabilities allow for rapid
material characterization and mechanical analysis
according to the following standards:
• ASTM D790 3-Point Flex
• ASTM D7264 4-Point Flex
• ASTM D2344 Short Beam Shear
• ASTM C393 Core Compression
• ASTM D7078 V-Notch Shear
• ASTM D7249 4-Point Flex (Long Beam)
• ASTM D6641 CLC Compression
For more specialized resin and material analysis,
additional testing capabilities are available
through Polymer Diagnostics, Inc.
https://www.avient.com/sites/default/files/2023-08/Swellcoat Yarns Product Bulletin.pdf
KEY FEATURES
• Swellcoat can be applied to any yarn in fiber
optic cable
• Precision wound for optimal cable production
speed
• Single & dual ends available
• Low dust
• Replaces messy gels
• High stability package allows for higher output
FIBER-LINE™ FIBERS SUITABLE FOR WATER
BLOCKING YARN
• Para-Aramid
• PET Polyester (standard, low, ultra low shrink)
fiber
• Liquid Crystal Polymer (LCP)
• Fiberglass
• Dyneema® Ultra-High Molecular Weight
Polyethylene (UHMWPE)
FIBER-LINE PERFORMANCE-ADDITIVE
COATINGS
• Swellcoat Coatings: water absorbing protection
• Swellcoat Blocker: blocks water migration
• Non-wick/Anti-wick Coatings: water resistant
shield
FIBER-LINE WATER BLOCKING
APPLICATIONS
• Binder yarn
• Buffer tube thread
• Filler yarn
• Ripcords
• Strength members
Copyright © 2023, Avient Corporation.
https://www.avient.com/sites/default/files/2021-02/versaflex-non-blooming-solution-technical-bulletin.pdf
Root causes of these problems may
have included improper injection molding conditions
or the incompatibility of TPE and vulcanized silicone
materials with desirable additives.
https://www.avient.com/sites/default/files/2021-01/sem-base-station-antenna-application-bulletin.pdf
In addition to an increased speed to market, our custom formulations boost your
design flexibility and offer better performance-to-cost ratios as compared to traditionally used materials.
https://www.avient.com/sites/default/files/2020-08/colormatrix-reprize-brochure-8.5x11.pdf
INCREASED
RECYCLE
CONTENT
Benefits of using rePrize include:
• Increased product target IV
• Improved melt flow consistency
• Increased recycle content
• Reduced rejects and scrap
• Improved low temperature performance
rePrize can be combined with other liquid
additives and can be used to optimize sheet
manufacturing processes and product quality,
whilst allowing for increased levels of recycle,
contributing towards improved sustainability
and reduced costs.
https://www.avient.com/sites/default/files/resources/Forward%2520Looking%2520Statements%2520and%2520Non%2520GAAP%2520Measures.pdf
In addition, operating income
before special items is a component of various PolyOne annual and long-term
employee incentive plans
https://www.avient.com/sites/default/files/2023-12/Avient_ALL_Policies_Dec_18_2023.pdf
In addition to identifying risk-reduction opportunities, we require each
associate—as a condition of employment—to work safely and make safe decisions
at all times.
https://www.avient.com/sites/default/files/2022-03/AVNT Mar 2022 Presentation.pdf
Whether
an additional line at an existing
manufacturing plant, or a new
facility in a growing region, we
ramp-up quickly and cost-efficiently.
30
Capex / Revenue
2022E (%)
AVIENT IS ASSET LIGHT
Avient Specialty
Other
4
7
7 7
(
xc
l.
We will deliver for our stakeholders through multiple value creation levers—many of
which are unique to Avient:
o Demand for sustainable solutions, healthcare, and composites, together with Clariant Color
revenue synergies, that will drive long-term revenue growth in excess of GDP
o Clariant color cost synergy capture will result in significant near-term benefit
In addition, we remain committed to increasing annual dividends in line with earnings growth and
opportunistically buying back shares, all while remaining modestly levered.
APPENDIX
Performance
Additives
15%
Pigments
TiO2
Dyestuffs
3%Polyethylene
Nylon
6%
Polypropylene
Other Raw
Materials
30%
Styrenic Block
Copolymer
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
35
• Significant raw material price inflation
and tight inventory continued in Q4 2021
o For the full year, the average cost of
hydrocarbon based materials was up
50% in 2021
o For the full year, the average cost of non-
hydrocarbon based materials was up
12% in 2021
• Additionally, we continued to experience
other supply chain challenges during Q4
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 2021 purchases, excludes Distribution business
SEGMENT DATA
U.S. & Canada
50%
Latin America
9%
2021 SEGMENT, END MARKET AND GEOGRAPHY
37
GEOGRAPHY REVENUESEGMENT FINANCIALS
23%
19%
Building and
END MARKET REVENUE
(1) Total company sales and adjusted EBITDA of $4,819M and $581M, respectively, include intercompany sales eliminations and corporate costs
$2,402M
$409M
$919M
$164M
$1,631M
$94M
Sales EBITDA
Distribution
Specialty Engineered Materials
Color Additives and Inks
$581M$4,819M
15%
34%
21%
Building &
9%
1% Telecommunications
C O L O R , A D D I T I V E S & I N K S
2021 REVENUE | $2 .4 BILL ION
32%
40%
21%
Latin America
END MARKET REGION
38
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
27%
Building &
2021 REVENUE | $919 MILLION
END MARKET
55%
20%
REGION
39
DI S TR IBU T I ON
26%
23%
20%
Building and
80%
3%
Latin
America
END MARKET REGION
K E Y S U P P L I ER S
2021 REVENUE | $1 .6 B ILL ION
40
TOTA L C O M PA N Y R E G I O N A L S A L E S
BY END MARKET
30%
26%Healthcare
14%
Building &
2% Energy
(16% of sales)
32%
Building &
(25% of sales)
41
19%
Building &
US &
Canada
(50% of sales)
38%
33%
Building &
LATAM
(9% of sales)