https://www.avient.com/sites/default/files/2023-11/AVNT Q3 2023 Earnings Press Release.pdf
Fourth quarter and full year adjusted EPS guidance updated to $0.47 and $2.30,
respectively; full year free cash flow expectation maintained at $180 million
We continue to generate strong cash flow from operations and are maintaining our full year free
cash flow guidance of $180 million.
The non-GAAP financial measures include adjusted EPS, adjusted
operating income, adjusted gross margin, adjusted EBITDA, and free cash flow.
https://www.avient.com/sites/default/files/2022-07/Avient 2021 Sustainability Report 7-26-22.pdf
As the CEO, change of this importance must begin with me—
my direction, decisions and actions,” he explained.
Campus Hires
6
25
58
139
52
90
2009 2011 2013 2015 2017 2019 2021
“Over the
course of my
various role
rotations,
I had the
opportunity
to learn from
industry-leading mentors and
experienced peers which has
been invaluable to my career
development.
UK Plastic Pact
In January of 2019, Avient joined The UK Plastics Pact, a collaborative initiative
committed to tackling plastic pollution.
https://www.avient.com/products-1
Plastics are among the most useful and impactful materials on earth.
Plastics help us move faster, work smarter, feel better and have more fun.
While the value of plastics is undeniable, we fully recognize that plastics and other materials are ending up in places they should not—like our waterways and oceans.
https://www.avient.com/investor-center/news/polyone-barrier-technologies-enable-sustainability-and-recyclability-packaging
Comptek, SilCoTec, Gordon Composites and Polystrand, including whether such businesses will be accretive, retain the management teams of acquired businesses, and retain relationships with customers of acquired businesses; disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; our ability to achieve new business gains; the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks; changes in polymer consumption growth rates and laws and regulations regarding the disposal of plastic in jurisdictions where we conduct business; changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online; fluctuations in raw material prices, quality and supply and in energy prices and supply; production outages or material costs associated with scheduled or unscheduled maintenance programs; unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; an inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital reductions, cost reductions and employee productivity goals; an inability to raise or sustain prices for products or services; our ability to continue to pay cash dividends, including at the increasing rate, which will be subject to, among other factors, market conditions, our cash flow and cash requirements and restrictions contained in any of our debt agreements; and other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and changes in the rate of inflation.
https://www.avient.com/investor-center/news/advanced-composite-materials-polyone-bringing-innovation-and-sustainability-transportation-industry
Comptek, SilCoTec, Gordon Composites and Polystrand, including whether such businesses will be accretive, retain the management teams of acquired businesses, and retain relationships with customers of acquired businesses; disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; our ability to achieve new business gains; the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks; changes in polymer consumption growth rates and laws and regulations regarding the disposal of plastic in jurisdictions where we conduct business; changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online; fluctuations in raw material prices, quality and supply and in energy prices and supply; production outages or material costs associated with scheduled or unscheduled maintenance programs; unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; an inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital reductions, cost reductions and employee productivity goals; an inability to raise or sustain prices for products or services; our ability to continue to pay cash dividends, including at the increasing rate, which will be subject to, among other factors, market conditions, our cash flow and cash requirements and restrictions contained in any of our debt agreements; and other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and changes in the rate of inflation.
https://www.avient.com/products/polymer-colorants/healthcare-colorants/mevopur-healthcare-colorants-and-formulations
Colorant and functional additive solutions formulated with bio-based polymers to reduce the carbon footprint of medical plastics.
Mevopur™ formulations for PCR well plates prevent 'cross-talk' and minimize phosphorescence with optimally dispersed TiO2, while balancing melt flow and physical properties, and ensuring quality through ISO 13485:2016 certification.
https://www.avient.com/knowledge-base/case-study/reinforcing-stronger-infrastructure?ind[]=21509
It requires less maintenance and monitoring while also providing improved flow characteristics over rigid steel pipe.
https://www.avient.com/sites/default/files/2024-08/Avient AUG 2024 Investor Presentation- w Non-GAAP.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
• Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future;
• The effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks;
• Disruptions or inefficiencies in our supply chain, logistics, or operations;
• Changes in laws and regulations in jurisdictions where we conduct business, including with respect to plastics and climate change;
• Fluctuations in raw material prices, quality and supply, and in energy prices and supply;
• Demand for our products and services;
• Production outages or material costs associated with scheduled or unscheduled maintenance programs;
• Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters;
• Our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends;
• Information systems failures and cyberattacks;
• Amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions;
• Our ability to achieve strategic objectives and successfully integrate acquisitions, including the implementation of a cloud-based enterprise resource planning system, S/4HANA;
• Other factors affecting our business beyond our control, including without limitation, changes in the general economy, changes in interest rates, changes in the rate of inflation, geopolitical conflicts and any recessionary conditions; and
• Other factors described in our Annual Report on Form 10-K for the year ended December 31, 2023 under Item 1A, “Risk Factors.”
The non-GAAP financial measures include: Adjusted Earnings Per Share, Adjusted EBITDA, Adjusted Free Cash Flow
and adjusted EBITDA margins.
A reconciliation of these measures to their most directly comparable GAAP measures is provided in the tables below.
2024 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income from continuing operations attributable to Avient shareholders $ 33.6 $ 0.36 $ 22.1 $ 0.24
Special items, after-tax 21.8 0.24 19.6 0.21
Amortization expense, after-tax 14.8 0.16 16.2 0.18
Adjusted net income / EPS $ 70.2 $ 0.76 $ 57.9 $ 0.63
Three Months Ended
Reconciliation to EBITDA and Adjusted EBITDA: 2024 2023
Net income from continuing operations – GAAP $ 33.8 $ 22.3
Income tax expense 11.2 10.4
Interest expense, net 26.6 29.4
Depreciation & amortization 44.9 47.6
EBITDA from continuing operations $ 116.5 $ 109.7
Special items, before tax 28.1 21.7
Interest expense included in special items (1.0) —
Depreciation & amortization included in special items (0.3) (0.1)
Adjusted EBITDA $ 143.3 $ 131.3
Adjusted EBITDA as a percent of sales 16.9 % 15.9 %
1
2024 2023
Sales:
Color, Additives and Inks $ 542.0 $ 524.5
Specialty Engineered Materials 308.1 300.8
Corporate (0.4) (0.9)
Sales $ 849.7 $ 824.4
Operating income:
Color, Additives and Inks $ 86.1 $ 68.0
Specialty Engineered Materials 42.8 39.7
Corporate (56.4) (45.4)
Operating income $ 72.5 $ 62.3
Depreciation & amortization:
Color, Additives and Inks $ 21.8 $ 25.7
Specialty Engineered Materials 20.8 19.9
Corporate 2.3 2.0
Depreciation & amortization $ 44.9 $ 47.6
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 107.9 $ 93.7
Specialty Engineered Materials 63.6 59.6
Corporate (54.1) (43.4)
Other expense, net (0.9) (0.2)
EBITDA from continuing operations 116.5 109.7
Special items, before tax 28.1 21.7
Interest expense included in special items (1.0) —
Depreciation & amortization included in special items (0.3) (0.1)
Adjusted EBITDA $ 143.3 $ 131.3
Adjusted EBITDA as a percent of sales:
Color, Additives and Inks 19.9 % 17.9 %
Specialty Engineered Materials 20.6 % 19.8 %
Year Ended
December 31, 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS
Net income from continuing operations attributable to Avient shareholders $ 75.8 $ 0.83
Special items, after-tax 79.3 0.86
Amortization expense, after-tax 61.5 0.67
Adjusted net income / EPS $ 216.6 $ 2.36
Adjusted Free Cash Flow Calculation December 31, 2023
Cash provided by operating activities $ 201.6
Capital expenditures (119.4)
Free cash flow 82.2
Taxes paid on gain on sale of business 104.1
Adjusted free cash flow $ 186.3
Year Ended
December 31, 2023
Sales:
Color, Additives and Inks $ 2,007.4
Specialty Engineered Materials 1,138.2
Corporate (2.8)
Sales $ 3,142.8
Operating income:
Color, Additives and Inks $ 259.9
Specialty Engineered Materials 142.5
Corporate (205.6)
Operating income $ 196.8
Depreciation & amortization:
Color, Additives and Inks $ 98.3
Specialty Engineered Materials 81.5
Corporate 9.0
Depreciation & amortization $ 188.8
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 358.2
Specialty Engineered Materials 224.0
Corporate (196.6)
Other income, net 5.8
EBITDA from continuing operations 391.4
Special items, before tax 114.6
Interest expense included in special items (2.3)
Depreciation & amortization included in special items (1.9)
Adjusted EBITDA $ 501.8
Adjusted EBITDA as a percent of sales 16.0 %
3
AVNT M8 Investor Presentation.pdf
Avient Disclaimer SLide.pdf
AVNT M8 Investor Presentation
IR Deck - AVNT-2024.06.30 (M8) (8.26.24 11AM Milestone August 26 1053 am).pdf
Attachment
https://www.avient.com/sites/default/files/2020-12/therma-tech-processing-guide.pdf
Therma-Tech formulations have been shown
to improve thermal conductivity by 50-100 times that of conventional plastics and can be used in a wide
range of thermal management applications.
It is best for material to flow
from thick to thin regions in the part.
Maintain a minimum draft angle of 1° per side.
4 Therma-Tech
Incomplete Fill
Melt and/or mold
too cold
• Increase nozzle and barrel temperatures
• Increase pack and hold pressure
• Increase nozzle tip diameter
• Check thermocouples and heater bands
Mold design
• Enlarge or widen vents and increase number of vents
• Check that vents are unplugged
• Check that gates are unplugged
• Enlarge gates and/or runners
• Perform short shots to determine fill pattern and
verify proper vent location
• Increase wall thickness to move gas trap to
parting line
Shot size
• Increase cushion
• Decrease transfer position
Brittleness
Low melt
temperature
• Measure melt temperature with pyrometer
Degraded/
overheated
material
• Decrease melt temperature
• Decrease back pressure
• Use smaller barrel/excessive residence time
• Decrease screw rpm
Gate location
and/or size
• Relocate gate to nonstress area
• Increase gate size to allow higher flow rate and lower
molded in stress
Fibers on Surface
(Splay)
Melt temperature
too low
• Increase injection speed
• Increase screw rpm
Insufficient packing
• Increase pack and hold pressure, and time
Processing Guide 5
Sink Marks
Part geometry
too thick
• Reduce wall thickness
• Reduce rib thickness
• Maintain nominal wall thickness
Melt too hot • Decrease nozzle and barrel temperatures
Insufficient
material volume
• Increase pack pressure/time
Flash
Injection pressure
too high
• Decrease injection pressure
• Increase clamp pressure
• Increase transfer position
Excess
material volume
• Decrease pack pressure
• Decrease shot size
Melt and/or mold
too hot
• Decrease screw speed
Excessive Shrink Too much
orientation
• Increase packing time and pressure
• Increase hold pressure
• Decrease melt temperature
• Decrease injection speed
• Decrease screw rpm
• Increase venting
Not Enough Shrink Too little
orientation
• Decrease packing pressure and time
• Decrease hold pressure
• Increase injection speed
• Increase screw rpm
• Decrease cooling time
6 Therma-Tech
Burning
Melt and/or mold
too cold
Mold design • Clean, widen and increase number of vents
• Increase gate size or number of gates
Moisture • Verify material is dried at proper conditions
Nozzle Drool Nozzle temperature
too hot
• Decrease nozzle temperature
• Decrease back pressure
• Increase screw decompression
• Verify material has been dried at proper conditions
Weld Lines
Melt front temperatures
are too low
• Increase pack and hold pressure
• Increase vent width and locations
Mold design
• Perform short shots to determine fill pattern
and verify proper vent location
• Add vents and/or false ejector pin
• Move gate location
Warp
Excessive orientation
• Decrease injection pressure and injection rate
Mold design • Increase number of gates
Sticking in Mold
Cavities are
overpacked
• Decrease injection rate and pressure
• Decrease pack and hold pressure
Mold design • Increase draft angle
Part is too hot
1.844.4AVIENT
www.avient.com
Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2023-07/AVNT Q2 2023 Earnings Presentation%5B70%5D.pdf
The non-GAAP financial measures include: Adjusted Earnings Per Share, Free Cash Flow, Net Debt/Adjusted EBITDA,
Adjusted EBITDA and Adjusted EBITDA Margin.
Avient does not provide reconciliations of forward-looking non-GAAP financial measures, such as outlook for Adjusted EBITDA, Adjusted Earnings Per Share, Net Debt/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.
Q 1 2 0 2 3
-8%
+6%
-1%
Flat
10
Total Avient -2.6%
2023 G U IDA N CE
$128
$525
$0.56
$2.40
2023 GUIDANCE
12
$800
$3,280
Sales Adjusted EBITDA Adjusted EPS
(in millions) (in millions)
13
• Focused on working capital
management, restructuring
actions to streamline
operations
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Preserve Free Cash Flow to
maintain net leverage
CASH FLOW / LEVERAGE
($ millions) 2023E
Cash Flow from Operating Activities 320$
Less: CapEx (140)
Free Cash Flow 180$
Adjusted EBITDA 525$
Net Debt / Adjusted EBITDA 3.0x
SUSTAINABILITY AS A GROWTH DRIVER
14
LONG-TERM REVENUE GROWTH DRIVERS
Revenue From Sustainable Solutions* 2016-2022
$340M
$405M
$455M
$550M
$790M
$915M
2016 2017 2018 2019 2020PF** 2021 2022PF***
$1,175M
*Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”)
**2020 is Pro Forma to include full year of the Clariant Color business
***2022 is Pro Forma for the acquisition of Avient Protective Materials and the divestiture of Distribution
60%+
Key Growth
Drivers
Sustainable
Solutions
Composites, Healthcare,
Asia / LATAM
Overlap
Other
(GDP Growth)
Total Company Revenue
SUSTAINABILITY REPORT
2022
• Provides progress on 2030 goals
• Reaffirms commitment to U.N.