https://www.avient.com/sites/default/files/2021-02/avient-ir-presentation-goldman-sachs-and-morgan-stanley.pdf
D is t. ) R P M P P G K W R F U L A V Y G C P IF F F M C H X L H U N E M N F O E E C L K R A S C L A S H C E G R A A LB Median: 5%Median: 3% Source: Peer data per Bloomberg market data as of February 5, 2021 Avient reflects 2021 estimated revenue of $4,100M and excludes one-time synergy capture CAPEX ($20M) Avient Specialty Formulators Other Chemical/Specialty Companies Free Cash Flow Conversion (1) 2021E (%) Being asset light helps us to generate strong free cash flow that is in line with specialty formulators.
Free cash flow conversion calculated as (EBITDA – Capex) / EBITDA Median: 83% Median: 76% HIGH FREE CASH FLOW CONVERSION Avient reflects 2021 estimated EBITDA of $510M and excludes one-time synergy capture CAPEX ($20M) Source: Peer data per Bloomberg market data as of February 5, 2021 85 87 86 86 81 81 59 92 88 81 79 79 79 76 76 75 73 67 67 64 60 7 A vi en t P P G K W R R P M F U L A V Y G C P IF F F M C U N V R H X L E M N B N R E C L C E A S H F O 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 February 5, 2021 Total Enterprise Value / 2021E EBITDA Our current valuation implies an EBITDA multiple that is significantly below specialty formulator peers and our historic valuations, when the company had considerable exposure to more cyclical and challenging end markets.
With the Clariant Masterbatch acquisition and divestment of the PP&S business, our exposure is now concentrated in less-cyclical and high-growth markets, with increased geographic diversification and a more specialized portfolio that can significantly expand EBITDA margins. 27 Avient reflects 2021 estimated EBITDA of $510M OUR VALUATION VERSUS PEERS Avient Specialty Formulators Other Chemical/Specialty Companies 9.5 21.1 13.2 13.2 12.0 12.0 9.7 25.2 23.1 14.7 13.5 12.9 11.0 11.0 11.0 10.2 9.6 9.3 9.3 9.1 8.6 8.3 A vi en t K W R A V Y R P M G C P P P G F U L A L B E C L H X L IF F F M C G R A B N R F O E A S H C E S C L U N V R E M N H U N K R A Median: 11.0xMedian: 12.6x SUMMARY: WHY INVEST IN AVIENT?
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PANTONE 2755 U/AGN380
PEARL BLUE 280C
LIGHT BLUE
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PPG CORPORATE BLUE
5415UGNSPL PANTONE(R) 5415 U SIMULATION
FLUORESCENT BLUE
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SC-2762 U NATURAL
MB3186 BLUE DISSECTION PAD
10066065 BLUE
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F588 BLUE
PMS 1505 U BRIGHT ORANGE
BLUE V1
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422ULBFF EPIC PANTONE(R) 422 U HO SIM
Geon(TM) DM799 NAVY BLUE PLASTISOL
STAN-TONE DB-15597 HI LITE BLUE
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PX-V-187(A) 2935 U BLU M3103 BASE TRANSL
BLUE
BLUE
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5725 BLUE 9D-33831-06
BLUE PEARL AS V3
8508 GY2794B-U GREY
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62861SLNS ANSP-SOLID ROYAL BLUR 286 U
METALLIC BLUE
MM425 BLUE
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VERDE 2975 U
TL BLUE AS 2
OPAQUE BLUE