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% HIGH FREE CASH FLOW CONVERSION 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 en 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/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 HIGH FREE CASH FLOW CONVERSION 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 nt 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 LB 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.
https://www.avient.com/sites/default/files/2021-09/avnt-q2-2021-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: 81% Median: 78% HIGH FREE CASH FLOW CONVERSION Avient reflects 2021 estimated EBITDA of $580M and excludes one-time synergy capture CAPEX ($20M) Source: Peer data per Bloomberg market data as of July 28, 2021 87 90 86 82 80 78 73 87 82 82 79 79 78 78 77 76 71 67 46 A vi en t K W R P P G A V Y F U L R P M G C P F M C U N V R C E IF F A S H E C L B N R E M N H X L H U N K R A S C L A L B (6) Source: Peer data per Bloomberg market data as of July 28, 2021 Total Enterprise Value / 2021E EBITDA Our current valuation with updated guidance implies an EBITDA multiple that is below specialty formulator peers and the median of other selected chemical / specialty companies.
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Avient Site in Glendale, Arizona Earns ISO 13485 Certification
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 FCF $ AVNT FCF Conversion % S&P FCF 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 DA 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 Progress through 2022 Gap to reach 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. (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.
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/investor-center/news/polyone-announces-third-quarter-2017-results
Below is a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP.
Below is a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP.
https://www.avient.com/investor-center/news/polyone-announces-second-quarter-2017-results
Below is a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP.
Below is a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP.
https://www.avient.com/investor-center/news/polyone-announces-first-quarter-2017-results
Below is a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP.
Below is a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP.
https://www.avient.com/investor-center/news/polyone-announces-second-quarter-2016-results
Below is a reconciliation of these non-GAAP financial measures to their most directly comparable measures calculated and presented in accordance with U.S.
Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with GAAP.