https://www.avient.com/sites/default/files/2021-04/avient-q4-earnings-and-2021-outlook-website.pdf
10 2021 O U TLO O K Synergies ($ millions) Initial Three-Year Estimate Revised Three-Year Estimate 2021 Expected Realization Administrative $ 18 $ 20 $ 15 Sourcing 24 30 15 Operational 18 25 5 Total Synergies $ 60 $ 75 $ 35 CLARIANT INTEGRATION & COST SYNERGIES UPDATE 12 • Integration going extremely well: synergy target increased from $60 million to $75 million • $5 million of synergies in 2020 and expect to realize $35 million in 2021 • Relentless focus on guiding principles of safety first, employee collaboration and exceeding customer expectations • Future revenue synergies are not part of these estimates and represent additional growth over the long term $86 $103 2020PF 2021E $0.53 $0.70 2020PF 2021E ORGANIC GROWTH PROJECTIONS – Q1 (TOTAL COMPANY) 13 Sales Adjusted Operating Income $991 $1,090 2020PF 2021E + 10% Adjusted EPS + 20% + 32% (in millions) (in millions) (1) (1) (1) (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition $308 $360 2020PF 2021E $1.93 $2.40 2020PF 2021E ORGANIC GROWTH PROJECTIONS – FULL YEAR (TOTAL COMPANY) 14 Sales Adjusted Operating Income $3,783 $4,100 2020PF 2021E + 8% Adjusted EPS + 17% + 24% (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition (1) (1) (in millions) (in millions) (1) 2020 Pro forma $3,783 $308 Sustainable Solutions 60 11% 24 Healthcare 60 11% 18 Composites 20 10% 10 Growth in Emerging Regions 50 7% 11 Other (GDP growth) 82 5% 11 Sub-total $4,055 7% $382 COVID Response Applications (25) - (11) Outdoor High Performance Applications (15) - (7) Asia Payroll Tax Subsidy (COVID) - - (4) FX Impact 85 - 7 Synergies - - 30 Incentives, Travel, Other Employee Costs - - (37) 2021 Estimated $4,100 8% $360 2021 ORGANIC SALES AND OPERATING INCOME (TOTAL COMPANY) 15 (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition (2) COVID Response Applications: facemasks, personal protective equipment Sales Growth Rate Adjusted Operating Income$ millions (1) (2) CASH FLOW AND LEVERAGE 16 • Asset light business generates significant free cash flow • Cash generation in 2021 partially offset by restructuring activities to capture synergies associated with the Clariant Masterbatch acquisition • Cash flow deployed to M&A, opportunistic share repurchases and balance sheet / leverage reduction 3.5x 2.7x 2.1x 2019PF 2020PF 2021E Net Debt / Adjusted EBITDA (1) (1) (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition ($ millions) 2020 2021E Adjusted EBITDA 382 510 Working Capital: Source / (Use) 116 (30) Cash Taxes (40) (53) Interest Paid (67) (76) CapEx (62) (75) CapEx for Synergy Capture (2) (20) Restructuring for Synergy Capture (11) (25) Other 22 19 Free Cash Flow 338 250 We sell solutions not commodities.
https://www.avient.com/sites/default/files/2023-02/AVNT Q4 2022 Earnings Presentation.pdf
$600 $592 2021 2022 $3.02 $3.04 2021 2022 FULL YEAR 2022 PERFORMANCE (TOTAL COMPANY PRO FORMA) 15 Sales Adjusted EBITDA $3,712 $3,653 2021 2022 -2% Adjusted EPS -1% + 1% (in millions) (in millions) (+4% excluding FX) (+5% excluding FX) (+9% excluding FX) FULL YEAR 2022 SEGMENT PERFORMANCE 16 CAI $2,402 $2,355 Sales ($ in millions) $409 $402 EBITDA SEM Pro Forma $1,308 $1,300 Sales $278 $272 EBITDA (+4% excluding FX) - 2% -1% (+5% excluding FX) - 2% (+4% excluding FX) - 2% (+2% excluding FX) PRO FORMA FULL YEAR EPS BRIDGE 17 Pro Forma 2021 Adjusted EPS 3.02$ Foreign Currency (0.23) Russia Import Sales (0.07) Outdoor High Performance (0.13) Color, Additives and Inks 0.18 Specialty Engineered Materials 0.24 Corporate Costs / Other 0.03 Pro Forma 2022 Adjusted EPS 3.04$ FULL YEAR EBITDA BRIDGE (PRO FORMA TOTAL COMPANY) 18 $ millions CAI: Price / Mix 247 Inflation (176) SEM: Price / Mix 121 Inflation (77) Net Price Benefit 115 Wage and Energy Inflation (47) Clariant Color Integration Synergies 23 Incentives, Other Employee Costs 43 FX (34) Full Year 2022 $592 Adjusted EBITDA Full Year 2021 $ 600 Demand (99) Russia Import Sales (9) • Demand primarily impacted by China lockdowns, 4th quarter industrywide destocking and declining consumer sentiment • Pricing outpaced inflation of raw materials, wages and energy 2023 G U IDA N CE $125 $530 Q1 FY $0.55 $2.40 Q1 FY 2023 GUIDANCE 20 Sales Adjusted EBITDA $845 $3,450 Q1 FY Adjusted EPS (in millions) (in millions) CASH FLOW / BALANCE SHEET 21 • IT investment to further integrate acquired businesses and capture operational efficiencies • Restructuring actions to streamline operations and improve profitability, primarily in Europe ($ millions) 2023E Cash Flow from Operating Activities 350$ Less: Run-Rate CapEx (110) CapEx for IT System Upgrade (25) CapEx for Restructuring (15) Total CapEx (150) Free Cash Flow 200$ Adjusted EBITDA 530$ Net Debt / Adjusted EBITDA 2.9x K E Y G R O W T H D R I V E R S A N D T R A N S F O R M E D P O R T F O L I O GROWTH DRIVERS: PROVEN SUCCESS 23 (1) Pro forma for the acquisition of Avient Protective Materials (APM) COMPOSITES $51 $84 $212 $668 2016 2018 2020 2022 Long Term Growth Rate 10% Organic CAGR 10% HEALTHCARE $108 $113 $231 $293 2016 2018 2020 2022 Long Term Growth Rate 8-10% Organic CAGR 11% ASIA/EMERGING REGIONS $265 $358 $726 $830 2016 2018 2020 2022 Long Term Growth Rate 5% Organic CAGR 12% $340 $455 $790 2016 2018 2020 2022 $1,175 SUSTAINABLE SOLUTIONS Long Term Growth Rate 8-12% Organic CAGR 11% (1) (1)(1) (Sales in $ millions) #1 Color Formulator Dyneema® - World’s Strongest Fiber™ #1 in Composites applications for outdoor high performance #1 in Performance Inks Customized solutions 140+ PhDs on staff Rapid development of innovative products Extensive patent (2,500+) portfolio 33% Vitality Index Better-positioned toward stable, high-growth end markets Consumer, packaging, healthcare and defense comprise nearly 60% of sales Agnostic to raw materials, helping all customers achieve their goals Broad portfolio of diversified sustainable solutions 90%+ of our innovation pipeline invested in sustainable solutions Long-term growth rate well above GDP with expectations of 8-12% LEVERAGING OUR TRANSFORMED PORTFOLIO 24 Healthcare 8% Packaging 24% Consumer 20% Building & Construction 10% Industrial 15% Transportation 9% Energy 4% Telecom. 4% 2022 PF $3.65B sales Defense 6% Leading Positions Sustainable SolutionsDiversified IndustriesSpecialty Formulator (1) 2022 Pro forma for the acquisition of Avient Protective Materials (2) 2020 Pro forma for the acquisition of Clariant Color (1)(2) (1) $340M $455M $790M 2016 2018 2020PF 2022PF $1,175M P EE R C O M PAR IS O N S AVIENT IS ASSET LIGHT Capex / Revenue 2023E (%) Avient Specialty Formulators Other Specialty / Chemical Companies Source: Peer data per Bloomberg as of February 13, 2023 Note: Avient reflects 2023 estimated revenue of $3,450 and estimated run-rate CAPEX of $110M. 27 3 2 3 3 4 4 3 4 5 5 5 6 7 7 A vi en t K W R P P G F U L A V Y R P M F M C H U N H X L C E E C L A S H S C L E M N FREE CASH FLOW CONVERSION Source: Peer data per Bloomberg as of February 13, 2023 Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/sites/default/files/2023-03/AVNT Mar 2023 Earnings Presentation.pdf
$600 $592 2021 2022 $3.02 $3.04 2021 2022 FULL YEAR 2022 PERFORMANCE (TOTAL COMPANY PRO FORMA) 19 Sales Adjusted EBITDA $3,712 $3,653 2021 2022 -2% Adjusted EPS -1% + 1% (in millions) (in millions) (+4% excluding FX) (+5% excluding FX) (+9% excluding FX) FULL YEAR 2022 SEGMENT PERFORMANCE 20 CAI $2,402 $2,355 Sales ($ in millions) $409 $402 EBITDA SEM Pro Forma $1,308 $1,300 Sales $278 $272 EBITDA (+4% excluding FX) - 2% -1% (+5% excluding FX) - 2% (+4% excluding FX) - 2% (+2% excluding FX) PRO FORMA FULL YEAR EPS BRIDGE 21 Pro Forma 2021 Adjusted EPS 3.02$ Foreign Currency (0.23) Russia Import Sales (0.07) Outdoor High Performance (0.13) Color, Additives and Inks 0.18 Specialty Engineered Materials 0.24 Corporate Costs / Other 0.03 Pro Forma 2022 Adjusted EPS 3.04$ FULL YEAR EBITDA BRIDGE (PRO FORMA TOTAL COMPANY) 22 $ millions CAI: Price / Mix 247 Inflation (176) SEM: Price / Mix 121 Inflation (77) Net Price Benefit 115 Wage and Energy Inflation (47) Clariant Color Integration Synergies 23 Incentives, Other Employee Costs 43 FX (34) Full Year 2022 $592 Adjusted EBITDA Full Year 2021 $ 600 Demand (99) Russia Import Sales (9) • Demand primarily impacted by China lockdowns, 4th quarter industrywide destocking and declining consumer sentiment • Pricing outpaced inflation of raw materials, wages and energy 2023 G U IDA N CE $125 $530 Q1 FY $0.55 $2.40 Q1 FY 2023 GUIDANCE 24 Sales Adjusted EBITDA $845 $3,450 Q1 FY Adjusted EPS (in millions) (in millions) CASH FLOW / BALANCE SHEET 25 • IT investment to further integrate acquired businesses and capture operational efficiencies • Restructuring actions to streamline operations and improve profitability, primarily in Europe ($ millions) 2023E Cash Flow from Operating Activities 350$ Less: Run-Rate CapEx (110) CapEx for IT System Upgrade (25) CapEx for Restructuring (15) Total CapEx (150) Free Cash Flow 200$ Adjusted EBITDA 530$ Net Debt / Adjusted EBITDA 2.9x K E Y G R O W T H D R I V E R S A N D T R A N S F O R M E D P O R T F O L I O GROWTH DRIVERS: PROVEN SUCCESS 27 (1) Pro forma for the acquisition of Avient Protective Materials (APM) COMPOSITES $51 $84 $212 $668 2016 2018 2020 2022 Long Term Growth Rate 10% Organic CAGR 10% HEALTHCARE $108 $113 $231 $293 2016 2018 2020 2022 Long Term Growth Rate 8-10% Organic CAGR 11% ASIA/EMERGING REGIONS $265 $358 $726 $830 2016 2018 2020 2022 Long Term Growth Rate 5% Organic CAGR 12% $340 $455 $790 2016 2018 2020 2022 $1,175 SUSTAINABLE SOLUTIONS Long Term Growth Rate 8-12% Organic CAGR 11% (1) (1)(1) (Sales in $ millions) #1 Color Formulator Dyneema® - World’s Strongest Fiber™ #1 in Composites applications for outdoor high performance #1 in Performance Inks Customized solutions 140+ PhDs on staff Rapid development of innovative products Extensive patent (2,500+) portfolio 33% Vitality Index Better-positioned toward stable, high-growth end markets Consumer, packaging, healthcare and defense comprise nearly 60% of sales Agnostic to raw materials, helping all customers achieve their goals Broad portfolio of diversified sustainable solutions 90%+ of our innovation pipeline invested in sustainable solutions Long-term growth rate well above GDP with expectations of 8-12% LEVERAGING OUR TRANSFORMED PORTFOLIO 28 Healthcare 8% Packaging 24% Consumer 20% Building & Construction 10% Industrial 15% Transportation 9% Energy 4% Telecom. 4% 2022 PF $3.65B sales Defense 6% Leading Positions Sustainable SolutionsDiversified IndustriesSpecialty Formulator (1) 2022 Pro forma for the acquisition of Avient Protective Materials (2) 2020 Pro forma for the acquisition of Clariant Color (1)(2) (1) $340M $455M $790M 2016 2018 2020PF 2022PF $1,175M P EE R C O M PAR IS O N S AVIENT IS ASSET LIGHT Capex / Revenue 2023E (%) Avient Specialty Formulators Other Specialty / Chemical Companies Source: Peer data per Bloomberg as of February 13, 2023 Note: Avient reflects 2023 estimated revenue of $3,450 and estimated run-rate CAPEX of $110M. 30 3 2 3 3 4 4 3 4 5 5 5 6 7 7 A vi en t K W R P P G F U L A V Y R P M F M C H U N H X L C E E C L A S H S C L E M N FREE CASH FLOW CONVERSION Source: Peer data per Bloomberg as of February 13, 2023 Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/sites/default/files/2022-02/Q4 2021 Avient Earnings Release_0.pdf
Three Months Ended December 31, 2021 2020 Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1) Net income from continuing operations attributable to Avient shareholders $ 29.8 $ 0.32 $ 74.2 $ 0.81 Special items, after tax (Attachment 3) 24.0 0.26 (26.7) (0.29) Adjusted net income / EPS - excluding special items $ 53.8 $ 0.58 $ 47.5 $ 0.52 (1) Per share amounts may not recalculate from figures presented herein due to rounding Year Ended December 31, 2021 2020 Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1) Net income from continuing operations attributable to Avient shareholders $ 230.8 $ 2.51 $ 132.0 $ 1.46 Special items, after tax (Attachment 3) 50.0 0.54 24.8 0.27 Adjusted net income / EPS - excluding special items $ 280.8 3.05 $ 156.8 1.73 (1) Per share amounts may not recalculate from figures presented herein due to rounding 8 Attachment 2 Avient Corporation Condensed Consolidated Statements of Income (Unaudited) (In millions, except per share data) Three Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 Sales $ 1,201.5 $ 997.0 $ 4,818.8 $ 3,242.1 Cost of sales 948.4 744.1 3,719.2 2,457.8 Gross margin 253.1 252.9 1,099.6 784.3 Selling and administrative expense 179.1 187.9 718.4 595.0 Operating income 74.0 65.0 381.2 189.3 Interest expense, net (17.5) (19.3) (75.3) (74.6) Other (expense) income, net (5.4) 11.7 (1.3) 24.3 Income from continuing operations before income taxes 51.1 57.4 304.6 139.0 Income tax (expense) benefit (22.2) 17.3 (74.0) (5.2) Net income from continuing operations 28.9 74.7 230.6 133.8 Income (loss) from discontinued operations, net of income taxes — 0.1 — (0.4) Net income 28.9 74.8 230.6 133.4 Net loss (income) attributable to noncontrolling interests 0.9 (0.5) 0.2 (1.8) Net income attributable to Avient common shareholders $ 29.8 $ 74.3 $ 230.8 $ 131.6 Earnings per share attributable to Avient common shareholders - Basic: Continuing operations $ 0.33 $ 0.81 $ 2.53 $ 1.47 Discontinued operations — — — (0.01) Total $ 0.33 $ 0.81 $ 2.53 $ 1.46 Earnings per share attributable to Avient common shareholders - Diluted: Continuing operations $ 0.32 $ 0.81 $ 2.51 $ 1.46 Discontinued operations — — — (0.01) Total $ 0.32 $ 0.81 $ 2.51 $ 1.45 Cash dividends declared per share of common stock $ 0.2375 $ 0.2125 $ 0.8750 $ 0.8200 Weighted-average shares used to compute earnings per common share: Basic 91.5 91.4 91.4 90.1 Diluted 92.4 92.1 92.1 90.6 9 Attachment 3 Avient Corporation Summary of Special Items (Unaudited) (In millions, except per share data) Special items (1) Three Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 Cost of sales: Restructuring costs, including accelerated depreciation $ (6.0) $ (1.8) $ (14.6) $ (4.3) Environmental remediation costs (0.5) (1.1) (22.9) (20.4) Reimbursement of previously incurred environmental costs — — 4.5 8.7 Acquisition related costs 0.6 1.2 (0.6) (9.3) Impact on cost of sales (5.9) (1.7) (33.6) (25.3) Selling and administrative expense: Restructuring, legal and other (4.2) (13.0) (5.9) (22.5) Acquisition earn-out adjustments — 1.5 — (1.0) Acquisition related costs (1.1) (1.4) (8.3) (24.9) Impact on selling and administrative expense (5.3) (12.9) (14.2) (48.4) Impact on operating income (11.2) (14.6) (47.8) (73.7) Costs related to committed financing in interest expense, net — — — (10.1) Other income, net — 0.1 0.1 0.4 Pension settlement/curtailment and mark-to-market adjustment (loss) gain (9.4) 10.3 (9.4) 17.2 Impact on income from continuing operations before income taxes (20.6) (4.2) (57.1) (66.2) Income tax benefit (expense) on above special items 4.1 (1.3) 13.0 14.1 Tax adjustments(2) (7.5) 32.2 (5.9) 27.3 Impact of special items on net income from continuing operations attributable to Avient Shareholders $ (24.0) $ 26.7 $ (50.0) $ (24.8) Diluted earnings per common share impact of special items on net income from continuing operations attributable to Avient shareholders $ (0.26) $ 0.29 $ (0.54) $ (0.27) Weighted average shares used to compute adjusted earnings per share: Diluted 92.4 92.1 92.1 90.6 (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; settlement gains or losses and 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; and the effect of changes in accounting principles or other such laws or provisions affecting reported results. (2) Tax adjustments include the net tax benefit/(expense) from one-time income tax items, adjustments to uncertain tax position reserves and deferred income tax valuation allowances. 10 Attachment 4 Avient Corporation Condensed Consolidated Balance Sheets (Unaudited) (In millions) Year Ended December 31, 2021 2020 ASSETS Current assets: Cash and cash equivalents $ 601.2 $ 649.5 Accounts receivable, net 642.3 516.6 Inventories, net 461.1 327.5 Other current assets 128.1 108.5 Total current assets 1,832.7 1,602.1 Property, net 676.1 694.9 Goodwill 1,286.4 1,308.1 Intangible assets, net 925.2 1,008.5 Operating lease assets, net 74.1 80.9 Other non-current assets 208.4 176.0 Total assets $ 5,002.9 $ 4,870.5 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term and current portion of long-term debt $ 8.6 $ 18.6 Accounts payable 553.9 471.7 Current operating lease obligations 24.2 25.1 Accrued expenses and other current liabilities 359.6 285.6 Total current liabilities 946.3 801.0 Non-current liabilities: Long-term debt 1,850.3 1,854.0 Pension and other post-retirement benefits 100.0 115.0 Deferred income taxes 100.6 140.0 Non-current operating lease obligations 50.1 56.0 Other non-current liabilities 165.1 192.8 Total non-current liabilities 2,266.1 2,357.8 SHAREHOLDERS' EQUITY Avient shareholders’ equity 1,774.7 1,697.1 Noncontrolling interest 15.8 14.6 Total equity 1,790.5 1,711.7 Total liabilities and equity $ 5,002.9 $ 4,870.5 11 Attachment 5 Avient Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Year Ended December 31, 2021 2020 Operating activities Net income $ 230.6 $ 133.4 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 144.2 111.8 Accelerated depreciation 1.7 3.2 Share-based compensation expense 11.2 11.3 Changes in assets and liabilities, net of the effect of acquisitions: Increase in accounts receivable (143.1) (4.6) (Increase) decrease in inventories (139.5) 40.2 Increase in accounts payable 95.3 78.4 (Decrease) increase in pension and other post-retirement benefits (10.9) 30.7 Increase in post-acquisition earnout liabilities — 1.0 Increase (decrease) in accrued expenses and other assets and liabilities, net 44.3 (3.7) Taxes paid on gain on divestiture — (142.0) Payment of post-acquisition date earnout liability — (38.1) Net cash provided by operating activities 233.8 221.6 Investing activities Capital expenditures (100.6) (63.7) Business acquisitions, net of cash acquired (47.6) (1,380.2) Net proceeds from divestiture — 7.1 Other investing activities (2.0) 5.2 Net cash used by investing activities (150.2) (1,431.6) Financing activities Debt offering proceeds — 650.0 Purchase of common shares for treasury (4.2) (22.4) Cash dividends paid (77.7) (71.3) Repayment of long-term debt (18.5) (7.8) Payments on withholding tax on share awards (10.7) (2.3) Debt financing costs — (9.5) Equity offering proceeds, net of underwriting discount and issuance costs — 496.1 Payment of acquisition date earnout liability — (50.8) Other financing activities (3.5) — Net cash (used) provided by financing activities (114.6) 982.0 Effect of exchange rate changes on cash (17.3) 12.8 Decrease in cash and cash equivalents (48.3) (215.2) Cash and cash equivalents at beginning of year 649.5 864.7 Cash and cash equivalents at end of year $ 601.2 $ 649.5 12 Attachment 6 Avient Corporation Business Segment Operations (Unaudited) (In millions) Operating income at the segment level does not include: special items as defined in Attachment 3; corporate general and administration costs that are not allocated to segments; intersegment sales and profit eliminations; share-based compensation costs; and certain other items that are not included in the measure of segment profit and loss that is reported to and reviewed by the chief operating decision maker.
https://www.avient.com/sites/default/files/2021-10/avnt-q3-2021-news-release.pdf
Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net income from continuing operations attributable to Avient shareholders $ 52.9 $ 0.57 $ 1.7 $ 0.02 Special items, after tax (Attachment 3) 11.7 0.13 40.3 0.44 Adjusted net income / EPS - excluding special items $ 64.6 $ 0.70 $ 42.0 $ 0.46 Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net income from continuing operations attributable to Avient shareholders $ 201.0 $ 2.18 $ 57.8 $ 0.64 Special items, after tax (Attachment 3) 26.0 0.28 51.5 0.57 Adjusted net income / EPS - excluding special items $ 227.0 $ 2.46 $ 109.3 $ 1.21 8 Attachment 2 Avient Corporation Condensed Consolidated Statements of Income (Unaudited) (In millions, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Sales $ 1,219.8 $ 924.5 $ 3,617.3 $ 2,245.1 Cost of sales 964.4 714.3 2,770.8 1,713.7 Gross margin 255.4 210.2 846.5 531.4 Selling and administrative expense 176.7 176.7 539.3 407.1 Operating income 78.7 33.5 307.2 124.3 Interest expense, net (19.0) (29.7) (57.8) (55.3) Other income, net 1.4 1.5 4.1 12.6 Income from continuing operations before income taxes 61.1 5.3 253.5 81.6 Income taxes (8.5) (2.7) (51.8) (22.5) Net income from continuing operations 52.6 2.6 201.7 59.1 Loss from discontinued operations, net of income taxes — — — (0.5) Net income 52.6 2.6 201.7 58.6 Net loss (income) attributable to noncontrolling interests 0.3 (0.9) (0.7) (1.3) Net income attributable to Avient common shareholders $ 52.9 $ 1.7 $ 201.0 $ 57.3 Earnings per share attributable to Avient common shareholders - Basic: Continuing operations $ 0.58 $ 0.02 $ 2.20 $ 0.64 Discontinued operations — — — — Total $ 0.58 $ 0.02 $ 2.20 $ 0.64 Earnings per share attributable to Avient common shareholders - Diluted: Continuing operations $ 0.57 $ 0.02 $ 2.18 $ 0.64 Discontinued operations — — — (0.01) Total $ 0.57 $ 0.02 $ 2.18 $ 0.63 Cash dividends declared per share of common stock $ 0.2125 $ 0.2025 $ 0.6375 $ 0.6075 Weighted-average shares used to compute earnings per common share: Basic 91.4 91.5 91.3 89.7 Diluted 92.2 91.9 92.1 90.7 9 Attachment 3 Avient Corporation Summary of Special Items (Unaudited) (In millions, except per share data) Special items (1) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of sales: Restructuring costs, including accelerated depreciation and amortization $ (5.3) $ (1.3) $ (8.6) $ (2.5) Environmental remediation costs (9.4) (15.8) (22.4) (19.3) Reimbursement of previously incurred environmental costs — — 4.5 8.7 Acquisition related costs (2.6) (10.5) (1.2) (10.5) Impact on cost of sales (17.3) (27.6) (27.7) (23.6) Selling and administrative expense: Restructuring, legal and other — (4.2) (1.7) (9.5) Acquisition earn-out adjustments — (1.5) — (2.5) Acquisition related costs (2.7) (7.1) (7.2) (23.5) Impact on selling and administrative expense (2.7) (12.8) (8.9) (35.5) Impact on operating income (20.0) (40.4) (36.6) (59.1) Costs related to committed financing in interest expense, net — (9.6) — (10.1) Other income, net 0.1 — 0.1 0.3 Pension settlement gain and mark-to-market adjustment — — — 6.9 Impact on income from continuing operations before income taxes (19.9) (50.0) (36.5) (62.0) Income tax benefit on above special items 4.6 12.7 8.9 15.4 Tax adjustments(2) 3.6 (3.0) 1.6 (4.9) Impact of special items on net income from continuing operations attributable to Avient Shareholders $ (11.7) $ (40.3) $ (26.0) $ (51.5) Diluted earnings per common share impact $ (0.13) $ (0.44) $ (0.28) $ (0.57) Weighted average shares used to compute adjusted earnings per share: Diluted 92.2 91.9 92.1 90.7 (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; settlement gains or losses and 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; and the effect of changes in accounting principles or other such laws or provisions affecting reported results. (2) Tax adjustments include the net tax benefit/(expense) from one-time income tax items, the set-up or reversal of uncertain tax position reserves and deferred income tax valuation allowance adjustments. 10 Attachment 4 Avient Corporation Condensed Consolidated Balance Sheets (In millions) (Unaudited) September 30, 2021 December 31, 2020 ASSETS Current assets: Cash and cash equivalents $ 545.2 $ 649.5 Accounts receivable, net 703.0 516.6 Inventories, net 477.2 327.5 Other current assets 123.5 108.5 Total current assets 1,848.9 1,602.1 Property, net 669.6 694.9 Goodwill 1,293.9 1,308.1 Intangible assets, net 948.4 1,008.5 Operating lease assets, net 81.6 80.9 Other non-current assets 168.6 176.0 Total assets $ 5,011.0 $ 4,870.5 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term and current portion of long-term debt $ 8.7 $ 18.6 Accounts payable 557.7 471.7 Current operating lease obligations 24.1 25.1 Accrued expenses and other current liabilities 371.3 285.6 Total current liabilities 961.8 801.0 Non-current liabilities: Long-term debt 1,851.0 1,854.0 Pension and other post-retirement benefits 111.0 115.0 Non-current operating lease obligations 57.7 56.0 Other non-current liabilities 244.1 332.8 Total non-current liabilities 2,263.8 2,357.8 SHAREHOLDERS' EQUITY Avient shareholders’ equity 1,768.8 1,697.1 Noncontrolling interest 16.6 14.6 Total equity 1,785.4 1,711.7 Total liabilities and equity $ 5,011.0 $ 4,870.5 11 Attachment 5 Avient Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Nine Months Ended September 30, 2021 2020 Operating Activities Net income $ 201.7 $ 58.6 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 105.8 74.8 Accelerated depreciation and amortization 1.9 2.5 Share-based compensation expense 8.4 7.1 Changes in assets and liabilities, net of the effect of acquisitions: Increase in accounts receivable (199.7) (12.7) (Increase) decrease in inventories (156.2) 53.0 Increase in accounts payable 95.3 21.3 Decrease in pension and other post-retirement benefits (14.2) (14.4) Increase in post-acquisition earnout liabilities — 2.5 Increase in accrued expenses and other assets and liabilities, net 67.0 56.1 Taxes paid on gain on divestiture — (142.0) Payment of post-acquisition date earnout liability — (38.1) Net cash provided by operating activities 110.0 68.7 Investing activities Capital expenditures (62.7) (38.6) Business acquisitions, net of cash acquired (47.6) (1,342.7) Net proceeds from divestiture — 7.1 Other investing activities (2.0) 5.2 Net cash used by investing activities (112.3) (1,369.0) Financing activities Debt offering proceeds — 650.0 Purchase of common shares for treasury (4.2) (13.6) Cash dividends paid (58.2) (52.8) Repayment of long-term debt (16.5) (6.0) Payments of withholding tax on share awards (9.1) (1.9) Debt financing costs — (9.5) Equity offering proceeds, net of underwriting discount and issuance costs — 496.1 Payment of acquisition date earnout liability — (50.8) Other financing activities (3.5) — Net cash (used) provided by financing activities (91.5) 1,011.5 Effect of exchange rate changes on cash (10.5) 1.4 Decrease in cash and cash equivalents (104.3) (287.4) Cash and cash equivalents at beginning of year 649.5 864.7 Cash and cash equivalents at end of period $ 545.2 $ 577.3 12 Attachment 6 Avient Corporation Business Segment Operations (Unaudited) (In millions) Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) at the segment level does not include: special items as defined in Attachment 3; corporate general and administration costs that are not allocated to segments; intersegment sales and profit eliminations; share-based compensation costs; and certain other items that are not included in the measure of segment profit and loss that is reported to and reviewed by the chief operating decision maker.
https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Earnings Press Release_0.pdf
Three Months Ended March 31, 2024 2023 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net income from continuing operations attributable to Avient shareholders $ 49.4 $ 0.54 $ 20.8 $ 0.23 Special items, after-tax (Attachment 3) 5.5 0.06 22.3 0.24 Amortization expense, after-tax 14.9 0.16 15.1 0.16 Adjusted net income / EPS $ 69.8 $ 0.76 $ 58.2 $ 0.63 7 Attachment 2 Avient Corporation Condensed Consolidated Statements of Income (Unaudited) (In millions, except per share data) Three Months Ended March 31, 2024 2023 Sales $ 829.0 $ 845.7 Cost of sales 550.8 598.1 Gross margin 278.2 247.6 Selling and administrative expense 184.2 190.5 Operating income 94.0 57.1 Interest expense, net (26.6) (28.8) Other (expense) income, net (0.9) 0.7 Income from continuing operations before income taxes 66.5 29.0 Income tax expense (16.8) (7.7) Net income from continuing operations 49.7 21.3 Loss from discontinued operations, net of income taxes — (0.9) Net income 49.7 20.4 Net income attributable to noncontrolling interests (0.3) (0.5) Net income attributable to Avient common shareholders $ 49.4 $ 19.9 Earnings (loss) per share attributable to Avient common shareholders - Basic: Continuing operations $ 0.54 $ 0.23 Discontinued operations — (0.01) Total $ 0.54 $ 0.22 Earnings (loss) per share attributable to Avient common shareholders - Diluted: Continuing operations $ 0.54 $ 0.23 Discontinued operations — (0.01) Total $ 0.54 $ 0.22 Cash dividends declared per share of common stock $ 0.2575 $ 0.2475 Weighted-average shares used to compute earnings per common share: Basic 91.2 91.0 Diluted 92.0 91.8 8 Attachment 3 Avient Corporation Summary of Special Items (Unaudited) (In millions, except per share data) Special items (1) Three Months Ended March 31, 2024 2023 Cost of sales: Restructuring costs, including accelerated depreciation $ 3.6 $ (6.6) Environmental remediation costs (4.0) (1.4) Impact on cost of sales (0.4) (8.0) Selling and administrative expense: Restructuring and employee separation costs (0.7) (11.3) Legal and other (3.5) (4.4) Acquisition related costs (1.6) (3.4) Impact on selling and administrative expense (5.8) (19.1) Impact on operating income (6.2) (27.1) Other income (loss), net — (0.2) Impact on income from continuing operations before income taxes (6.2) (27.3) Income tax benefit on above special items 1.4 6.9 Tax adjustments(2) (0.7) (1.9) Impact of special items on net income from continuing operations $ (5.5) $ (22.3) Diluted earnings per common share impact $ (0.06) $ (0.24) Weighted average shares used to compute adjusted earnings per share: Diluted 92.0 91.8 (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; settlement gains or losses and mark-to- market adjustments associated with 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, 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; and the effect of changes in accounting principles or other such laws or provisions affecting reported results. (2) Tax adjustments include the net tax impact from non-recurring income tax items, adjustments to uncertain tax position reserves and the establishment, reversal or changes to valuation allowances. 9 Attachment 4 Avient Corporation Condensed Consolidated Balance Sheets (In millions) (Unaudited) March 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 444.3 $ 545.8 Accounts receivable, net 475.3 399.9 Inventories, net 354.0 347.0 Other current assets 117.1 114.9 Total current assets 1,390.7 1,407.6 Property, net 1,021.7 1,028.9 Goodwill 1,700.1 1,719.3 Intangible assets, net 1,546.5 1,590.8 Other non-current assets 217.1 221.9 Total assets $ 5,876.1 $ 5,968.5 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term and current portion of long-term debt $ 9.6 $ 9.5 Accounts payable 428.3 432.3 Accrued expenses and other current liabilities 294.2 331.8 Total current liabilities 732.1 773.6 Non-current liabilities: Long-term debt 2,069.4 2,070.5 Pension and other post-retirement benefits 66.3 67.2 Deferred income taxes 280.0 281.6 Other non-current liabilities 390.5 437.6 Total non-current liabilities 2,806.2 2,856.9 SHAREHOLDERS' EQUITY Avient shareholders’ equity 2,321.3 2,319.2 Noncontrolling interest 16.5 18.8 Total equity 2,337.8 2,338.0 Total liabilities and equity $ 5,876.1 $ 5,968.5 10 Attachment 5 Avient Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Three Months Ended March 31, 2024 2023 Operating activities Net income $ 49.7 $ 20.4 Adjustments to reconcile net income to net cash used by operating activities: Depreciation and amortization 43.8 48.7 Accelerated depreciation 0.5 1.8 Share-based compensation expense 3.3 3.2 Changes in assets and liabilities: Increase in accounts receivable (81.9) (40.2) (Increase) decrease in inventories (12.3) 3.8 Increase (decrease) in accounts payable 1.7 (9.9) Accrued expenses and other assets and liabilities, net (47.6) (50.0) Net cash used by operating activities (42.8) (22.2) Investing activities Capital expenditures (24.4) (20.3) Net proceeds from divestiture — 7.3 Proceeds from plant closures 2.0 — Other investing activities (2.1) — Net cash used by investing activities (24.5) (13.0) Financing activities Cash dividends paid (23.5) (22.5) Repayment of long-term debt (2.7) (0.8) Other financing activities (1.9) (2.3) Net cash used by financing activities (28.1) (25.6) Effect of exchange rate changes on cash (6.1) 2.4 Decrease in cash and cash equivalents (101.5) (58.4) Cash and cash equivalents at beginning of year 545.8 641.1 Cash and cash equivalents at end of period $ 444.3 $ 582.7 11 Attachment 6 Avient Corporation Business Segment Operations (Unaudited) (In millions) Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) at the segment level does not include: special items as defined in Attachment 3; corporate general and administration costs that are not allocated to segments; intersegment sales and profit eliminations; share-based compensation costs; and certain other items that are not included in the measure of segment profit and loss that is reported to and reviewed by the chief operating decision maker.
https://www.avient.com/sites/default/files/2024-08/AVNT Second Quarter Earnings Press Release.pdf
Three Months Ended June 30, 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 (Attachment 3) 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 Six Months Ended June 30, 2024 2023 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net income from continuing operations attributable to Avient shareholders $ 83.0 $ 0.90 $ 42.9 $ 0.47 Special items, after-tax (Attachment 3) 27.3 0.30 41.9 0.46 Amortization expense, after-tax 29.7 0.32 31.3 0.34 Adjusted net income / EPS $ 140.0 $ 1.52 $ 116.1 $ 1.27 8 Attachment 2 Avient Corporation Condensed Consolidated Statements of Income (Unaudited) (In millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Sales $ 849.7 $ 824.4 $ 1,678.7 $ 1,670.1 Cost of sales 592.1 583.7 1,142.9 1,181.8 Gross margin 257.6 240.7 535.8 488.3 Selling and administrative expense 185.1 178.4 369.3 368.9 Operating income 72.5 62.3 166.5 119.4 Interest expense, net (26.6) (29.4) (53.2) (58.2) Other (expense) income, net (0.9) (0.2) (1.8) 0.5 Income from continuing operations before income taxes 45.0 32.7 111.5 61.7 Income tax expense (11.2) (10.4) (28.0) (18.1) Net income from continuing operations 33.8 22.3 83.5 43.6 Loss from discontinued operations, net of income taxes — — — (0.9) Net income $ 33.8 $ 22.3 $ 83.5 $ 42.7 Net income attributable to noncontrolling interests (0.2) (0.2) (0.5) (0.7) Net income attributable to Avient common shareholders $ 33.6 $ 22.1 $ 83.0 $ 42.0 Earnings (loss) per share attributable to Avient common shareholders - Basic: Continuing operations $ 0.37 $ 0.24 $ 0.91 $ 0.47 Discontinued operations — — — (0.01) Total $ 0.37 $ 0.24 $ 0.91 $ 0.46 Earnings (loss) per share attributable to Avient common shareholders - Diluted: Continuing operations $ 0.36 $ 0.24 $ 0.90 $ 0.47 Discontinued operations — — — (0.01) Total $ 0.36 $ 0.24 $ 0.90 $ 0.46 Cash dividends declared per share of common stock $ 0.2575 $ 0.2475 $ 0.5150 $ 0.4950 Weighted-average shares used to compute earnings per common share: Basic 91.3 91.1 91.3 91.1 Diluted 92.2 91.9 92.0 91.9 9 Attachment 3 Avient Corporation Summary of Special Items (Unaudited) (In millions, except per share data) Special items (1) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Cost of sales: Restructuring costs, including accelerated depreciation $ 0.2 $ (1.2) $ 3.8 $ (7.8) Environmental remediation costs (21.8) (13.0) (25.8) (14.4) Impact on cost of sales (21.6) (14.2) (22.0) (22.2) Selling and administrative expense: Restructuring and employee separation costs (2.8) (0.5) (3.5) (11.9) Legal and other (2.3) (6.4) (5.8) (10.6) Acquisition related costs (0.5) (0.7) (2.1) (4.2) Impact on selling and administrative expense (5.6) (7.6) (11.4) (26.7) Impact on operating income (27.2) (21.8) (33.4) (48.9) Interest expense, net - financing costs (1.0) — (1.0) — Other income (loss) 0.1 0.1 0.1 (0.1) Impact on income from continuing operations before income taxes (28.1) (21.7) (34.3) (49.0) Income tax benefit on above special items 7.0 5.5 8.4 12.4 Tax adjustments(2) (0.7) (3.4) (1.4) (5.3) Impact of special items on net income from continuing operations $ (21.8) $ (19.6) $ (27.3) $ (41.9) Diluted earnings per common share impact $ (0.24) $ (0.21) $ (0.30) $ (0.46) Weighted average shares used to compute adjusted earnings per share: Diluted 92.2 91.9 92.0 91.9 (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; settlement gains or losses and mark-to- market adjustments associated with 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, 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; and the effect of changes in accounting principles or other such laws or provisions affecting reported results. (2) Tax adjustments include the net tax impact from non-recurring income tax items, adjustments to uncertain tax position reserves and the establishment, reversal or changes to valuation allowances. 10 Attachment 4 Avient Corporation Condensed Consolidated Balance Sheets (In millions) (Unaudited) June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 489.4 $ 545.8 Accounts receivable, net 486.6 399.9 Inventories, net 365.9 347.0 Other current assets 117.2 114.9 Total current assets 1,459.1 1,407.6 Property, net 1,019.9 1,028.9 Goodwill 1,685.1 1,719.3 Intangible assets, net 1,515.7 1,590.8 Other non-current assets 228.0 221.9 Total assets $ 5,907.8 $ 5,968.5 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term and current portion of long-term debt $ 657.7 $ 9.5 Accounts payable 435.2 432.3 Accrued expenses and other current liabilities 405.3 331.8 Total current liabilities 1,498.2 773.6 Non-current liabilities: Long-term debt 1,420.8 2,070.5 Pension and other post-retirement benefits 63.3 67.2 Deferred income taxes 276.3 281.6 Other non-current liabilities 315.0 437.6 Total non-current liabilities 2,075.4 2,856.9 SHAREHOLDERS' EQUITY Avient shareholders’ equity 2,317.5 2,319.2 Noncontrolling interest 16.7 18.8 Total equity 2,334.2 2,338.0 Total liabilities and equity $ 5,907.8 $ 5,968.5 11 Attachment 5 Avient Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Six Months Ended June 30, 2024 2023 Operating Activities Net income $ 83.5 $ 42.7 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 88.4 96.2 Accelerated depreciation 0.8 1.9 Share-based compensation expense 9.0 6.5 Changes in assets and liabilities: Increase in accounts receivable (97.0) (66.6) (Increase) decrease in inventories (27.3) 14.0 Increase (decrease) in accounts payable 11.9 (26.2) Taxes paid on gain on sale of business — (103.0) Accrued expenses and other assets and liabilities, net (6.2) 9.8 Net cash provided (used) by operating activities 63.1 (24.7) Investing activities Capital expenditures (55.8) (45.9) Net proceeds from divestiture — 7.3 Proceeds from plant closures 3.4 — Other investing activities (2.1) — Net cash used by investing activities (54.5) (38.6) Financing activities Cash dividends paid (47.0) (45.0) Repayment of long-term debt (4.5) (1.0) Other financing activities (3.3) (2.3) Net cash used by financing activities (54.8) (48.3) Effect of exchange rate changes on cash (10.2) (0.8) Decrease in cash and cash equivalents (56.4) (112.4) Cash and cash equivalents at beginning of year 545.8 641.1 Cash and cash equivalents at end of period $ 489.4 $ 528.7 12 Attachment 6 Avient Corporation Business Segment Operations (Unaudited) (In millions) Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) at the segment level does not include: special items as defined in Attachment 3; corporate general and administration costs that are not allocated to segments; intersegment sales and profit eliminations; share-based compensation costs; and certain other items that are not included in the measure of segment profit and loss that is reported to and reviewed by the chief operating decision maker.
https://www.avient.com/sites/default/files/2022-07/Avient Announces Second Quarter 2022 Results_1.pdf
Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net income attributable to Avient shareholders $ 84.7 $ 0.92 $ 68.8 $ 0.74 Special items, after tax (Attachment 3) 5.1 0.06 11.7 0.13 Adjusted net income / EPS - excluding special items $ 89.8 $ 0.98 $ 80.5 $ 0.87 Six months ended June 30, 2022 Six months ended June 30, 2021 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net income attributable to Avient shareholders $ 168.9 $ 1.83 $ 148.1 $ 1.60 Special items, after tax (Attachment 3) 12.3 0.13 14.3 0.16 Adjusted net income / EPS - excluding special items $ 181.2 $ 1.96 $ 162.4 $ 1.76 7 Attachment 2 Avient Corporation Condensed Consolidated Statements of Income (Unaudited) (In millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Sales $ 1,302.4 $ 1,235.2 $ 2,596.2 $ 2,397.5 Cost of sales 998.6 946.5 1,998.7 1,806.4 Gross margin 303.8 288.7 597.5 591.1 Selling and administrative expense 174.3 180.6 339.4 362.6 Operating income 129.5 108.1 258.1 228.5 Interest expense, net (16.2) (19.5) (33.1) (38.8) Other income, net 1.4 1.2 0.8 2.7 Income before income taxes 114.7 89.8 225.8 192.4 Income tax expense (30.0) (20.4) (56.6) (43.3) Net income 84.7 69.4 169.2 149.1 Net income attributable to noncontrolling interests — (0.6) (0.3) (1.0) Net income attributable to Avient shareholders $ 84.7 $ 68.8 $ 168.9 $ 148.1 Earnings per share attributable to Avient common shareholders - Basic $ 0.93 $ 0.75 $ 1.85 $ 1.62 Earnings per share attributable to Avient common shareholders - Diluted $ 0.92 $ 0.74 $ 1.83 $ 1.60 Cash dividends declared per share of common stock $ 0.2375 $ 0.2125 $ 0.4750 $ 0.4250 Weighted-average shares used to compute earnings per common share: Basic 91.4 91.3 91.4 91.3 Diluted 92.1 92.4 92.2 92.3 8 Attachment 3 Avient Corporation Summary of Special Items (Unaudited) (In millions, except per share data) Special items (1) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cost of sales: Restructuring costs, including accelerated depreciation and amortization $ (2.6) $ (1.5) $ (7.0) $ (3.3) Environmental remediation costs (3.0) (12.5) (5.0) (13.0) Reimbursement of previously incurred environmental costs 7.6 — 8.2 4.5 Acquisition related costs — 1.4 — 1.4 Impact on cost of sales 2.0 (12.6) (3.8) (10.4) Selling and administrative expense: Restructuring, legal and other (4.2) (0.4) (3.3) (1.7) Acquisition related costs (2.1) (1.2) (5.0) (4.5) Impact on selling and administrative expense (6.3) (1.6) (8.3) (6.2) Impact on operating income (4.3) (14.2) (12.1) (16.6) Other income, net — — 0.1 — Mark-to-market on cross-currency swaps 0.9 — 0.9 — Impact on income before income taxes (3.4) (14.2) (11.1) (16.6) Income tax benefit on above special items 0.8 3.4 2.8 4.3 Tax adjustments(2) (2.5) (0.9) (4.0) (2.0) Impact of special items on net income attributable to Avient Shareholders $ (5.1) $ (11.7) $ (12.3) $ (14.3) Diluted earnings per common share impact $ (0.06) $ (0.13) $ (0.13) $ (0.16) Weighted average shares used to compute adjusted earnings per share: Diluted 92.1 92.4 92.2 92.3 (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; settlement gains or losses and 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; and the effect of changes in accounting principles or other such laws or provisions affecting reported results. (2) Tax adjustments include the net tax benefit/(expense) from one-time income tax items, the set-up or reversal of uncertain tax position reserves and deferred income tax valuation allowance adjustments. 9 Attachment 4 Avient Corporation Condensed Consolidated Balance Sheets (In millions) (Unaudited) June 30, 2022 December 31, 2021 ASSETS Current assets: Cash and cash equivalents $ 645.1 $ 601.2 Accounts receivable, net 752.6 642.3 Inventories, net 494.0 461.1 Other current assets 128.4 122.4 Total current assets 2,020.1 1,827.0 Property, net 638.9 676.1 Goodwill 1,256.8 1,286.4 Intangible assets, net 867.2 925.2 Operating lease assets, net 62.7 74.1 Other non-current assets 197.9 208.4 Total assets $ 5,043.6 $ 4,997.2 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term and current portion of long-term debt $ 607.7 $ 8.6 Accounts payable 634.0 553.9 Current operating lease obligations 21.4 24.2 Accrued expenses and other current liabilities 307.5 353.9 Total current liabilities 1,570.6 940.6 Non-current liabilities: Long-term debt 1,249.1 1,850.3 Pension and other post-retirement benefits 95.0 100.0 Deferred income taxes 106.6 100.6 Non-current operating lease obligations 41.8 50.1 Other non-current liabilities 154.7 165.1 Total non-current liabilities 1,647.2 2,266.1 SHAREHOLDERS' EQUITY Avient shareholders’ equity 1,809.7 1,774.7 Noncontrolling interest 16.1 15.8 Total equity 1,825.8 1,790.5 Total liabilities and equity $ 5,043.6 $ 4,997.2 10 Attachment 5 Avient Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Six Months Ended June 30, 2022 2021 Operating Activities Net income $ 169.2 $ 149.1 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 71.1 69.5 Accelerated depreciation and amortization 3.2 1.4 Share-based compensation expense 6.3 5.6 Changes in assets and liabilities, net of the effect of acquisitions: Increase in accounts receivable (133.2) (196.1) Increase in inventories (45.9) (88.1) Increase in accounts payable 98.5 108.4 Decrease in pension and other post-retirement benefits (9.9) (9.2) (Decrease) increase in accrued expenses and other assets and liabilities, net (52.6) 27.5 Net cash provided by operating activities 106.7 68.1 Investing activities Capital expenditures (34.0) (42.1) Settlement of cross-currency swaps 75.1 — Net cash proceeds used by other assets — (2.0) Net cash provided (used) by investing activities 41.1 (44.1) Financing activities Purchase of common shares for treasury (36.4) (4.2) Cash dividends paid (43.5) (38.8) Repayment of long-term debt (4.4) (4.4) Payments of withholding tax on share awards (4.1) (4.2) Net cash used by financing activities (88.4) (51.6) Effect of exchange rate changes on cash (15.5) (5.7) Increase (decrease) in cash and cash equivalents 43.9 (33.3) Cash and cash equivalents at beginning of year 601.2 649.5 Cash and cash equivalents at end of period $ 645.1 $ 616.2 11 Attachment 6 Avient Corporation Business Segment Operations (Unaudited) (In millions) Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) at the segment level does not include: special items as defined in Attachment 3; corporate general and administration costs that are not allocated to segments; intersegment sales and profit eliminations; share-based compensation costs; and certain other items that are not included in the measure of segment profit and loss that is reported to and reviewed by the chief operating decision maker.
https://www.avient.com/sites/default/files/2021-04/avnt-first-quarter-2021-news-release.pdf
Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net income from continuing operations attributable to Avient shareholders $ 79.3 $ 0.86 $ 33.1 $ 0.38 Special items, after tax (Attachment 3) 2.6 0.03 8.6 0.10 Adjusted net income / EPS - excluding special items $ 81.9 $ 0.89 $ 41.7 $ 0.48 7 Attachment 2 Avient Corporation Condensed Consolidated Statements of Income (Unaudited) (In millions, except per share data) Three Months Ended March 31, 2021 2020 Sales $ 1,162.3 $ 711.5 Cost of sales 859.9 540.0 Gross margin 302.4 171.5 Selling and administrative expense 182.0 118.7 Operating income 120.4 52.8 Interest expense, net (19.3) (9.4) Other income, net 1.5 1.6 Income from continuing operations before income taxes 102.6 45.0 Income taxes (22.9) (11.9) Net income from continuing operations 79.7 33.1 Loss from discontinued operations, net of income taxes — (0.3) Net income 79.7 32.8 Net income attributable to noncontrolling interests (0.4) — Net income attributable to Avient common shareholders $ 79.3 $ 32.8 Earnings per share attributable to Avient common shareholders - Basic: Continuing operations $ 0.87 $ 0.38 Discontinued operations — — Total $ 0.87 $ 0.38 Earnings per share attributable to Avient common shareholders - Diluted: Continuing operations $ 0.86 $ 0.38 Discontinued operations — — Total $ 0.86 $ 0.38 Cash dividends declared per share of common stock $ 0.2125 $ 0.2025 Weighted-average shares used to compute earnings per common share: Basic 91.3 86.3 Diluted 92.2 86.7 8 Attachment 3 Avient Corporation Summary of Special Items (Unaudited) (In millions, except per share data) Special items (1) Three Months Ended March 31, 2021 2020 Cost of sales: Restructuring costs, including accelerated depreciation and amortization $ (1.8) $ — Environmental remediation costs (0.5) (0.4) Reimbursement of previously incurred environmental costs 4.5 0.2 Impact on cost of sales 2.2 (0.2) Selling and administrative expense: Restructuring, legal and other (1.3) (1.8) Acquisition earn-out adjustments — (1.0) Acquisition related costs (3.3) (6.7) Impact on selling and administrative expense (4.6) (9.5) Impact on operating income (2.4) (9.7) Other income, net — 0.1 Impact on income from continuing operations before income taxes (2.4) (9.6) Income tax benefit on above special items 0.9 2.0 Tax adjustments(2) (1.1) (1.0) Impact of special items on net income from continuing operations attributable to Avient Shareholders $ (2.6) $ (8.6) Diluted earnings per common share impact $ (0.03) $ (0.10) Weighted average shares used to compute adjusted earnings per share: Diluted 92.2 86.7 (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; settlement gains or losses and 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; and the effect of changes in accounting principles or other such laws or provisions affecting reported results. (2) Tax adjustments include the net tax benefit/(expense) from one-time income tax items, the set-up or reversal of uncertain tax position reserves and deferred income tax valuation allowance adjustments. 9 Attachment 4 Avient Corporation Condensed Consolidated Balance Sheets (In millions) (Unaudited) March 31, 2021 December 31, 2020 ASSETS Current assets: Cash and cash equivalents $ 594.5 $ 649.5 Accounts receivable, net 642.2 516.6 Inventories, net 357.0 327.5 Other current assets 122.7 108.5 Total current assets 1,716.4 1,602.1 Property, net 675.5 694.9 Goodwill 1,281.9 1,308.1 Intangible assets, net 973.3 1,008.5 Operating lease assets, net 80.9 80.9 Other non-current assets 181.4 176.0 Total assets $ 4,909.4 $ 4,870.5 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term and current portion of long-term debt $ 18.8 $ 18.6 Accounts payable 529.6 471.7 Current operating lease obligations 24.3 25.1 Accrued expenses and other current liabilities 290.9 285.6 Total current liabilities 863.6 801.0 Non-current liabilities: Long-term debt 1,852.7 1,854.0 Pension and other post-retirement benefits 111.3 115.0 Non-current operating lease obligations 56.8 56.0 Other non-current liabilities 303.0 332.8 Total non-current liabilities 2,323.8 2,357.8 SHAREHOLDERS' EQUITY Avient shareholders’ equity 1,707.0 1,697.1 Noncontrolling interest 15.0 14.6 Total equity 1,722.0 1,711.7 Total liabilities and equity $ 4,909.4 $ 4,870.5 10 Attachment 5 Avient Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Three Months Ended March 31, 2021 2020 Operating Activities Net income $ 79.7 $ 32.8 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 36.6 19.9 Accelerated depreciation and amortization 0.5 — Share-based compensation expense 2.7 2.1 Changes in assets and liabilities, net of the effect of acquisitions: Increase in accounts receivable (137.6) (56.9) Increase in inventories (35.1) (13.0) Increase in accounts payable 67.3 44.6 Decrease in pension and other post-retirement benefits (7.1) (3.2) Increase in post-acquisition earnout liabilities — 1.0 Decrease in accrued expenses and other assets and liabilities, net (3.4) (19.1) Payment of post-acquisition date earnout liability — (21.0) Net cash provided (used) by operating activities 3.6 (12.8) Investing activities Capital expenditures (16.5) (11.1) Net proceeds from divestiture — 7.1 Net proceeds (used) provided by other assets (2.0) 5.2 Net cash (used) provided by investing activities (18.5) 1.2 Financing activities Purchase of common shares for treasury (4.2) (13.6) Cash dividends paid (19.5) (15.6) Repayment of long-term debt (2.3) (2.0) Payments of withholding tax on share awards (3.1) (1.3) Equity offering proceeds, net of underwriting discount and issuance costs — 496.3 Payment of acquisition date earnout liability — (32.9) Net cash (used) provided by financing activities (29.1) 430.9 Effect of exchange rate changes on cash (11.0) (3.8) (Decrease) increase in cash and cash equivalents (55.0) 415.5 Cash and cash equivalents at beginning of year 649.5 864.7 Cash and cash equivalents at end of period $ 594.5 $ 1,280.2 11 Attachment 6 Avient Corporation Business Segment Operations (Unaudited) (In millions) Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) at the segment level does not include: special items as defined in Attachment 3; corporate general and administration costs that are not allocated to segments; intersegment sales and profit eliminations; share-based compensation costs; and certain other items that are not included in the measure of segment profit and loss that is reported to and reviewed by the chief operating decision maker.
https://www.avient.com/sites/default/files/2025-02/News Release - AVNT-2024.12.31-News Release 2.12.25 2PM_0.pdf
Three Months Ended December 31, 2024 2023 Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1) Net income from continuing operations attributable to Avient shareholders $ 48.3 $ 0.52 $ 27.8 $ 0.30 Special items, after-tax (Attachment 3) (18.0) (0.20) 5.4 0.06 Amortization expense, after-tax 14.8 0.17 15.0 0.16 Adjusted net income / EPS $ 45.1 $ 0.49 $ 48.2 $ 0.52 (1) Per share amounts may not recalculate from figures presented herein due to rounding Year Ended December 31, 2024 2023 Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1) Net income from continuing operations attributable to Avient shareholders $ 169.5 $ 1.84 $ 75.8 $ 0.83 Special items, after-tax (Attachment 3) 15.9 0.17 79.3 0.86 Amortization expense, after-tax 59.5 0.65 61.5 0.67 Adjusted net income / EPS $ 244.9 $ 2.66 $ 216.6 $ 2.36 (1) Per share amounts may not recalculate from figures presented herein due to rounding 8 Attachment 2 Avient Corporation Condensed Consolidated Statements of Income (Unaudited) (In millions, except per share data) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Sales $ 746.5 $ 719.0 $ 3,240.4 $ 3,142.8 Cost of sales 487.0 510.1 2,183.7 2,250.3 Gross margin 259.5 208.9 1,056.7 892.5 Selling and administrative expense 173.9 165.8 727.4 695.7 Operating income 85.6 43.1 329.3 196.8 Interest expense, net (25.5) (26.8) (105.6) (115.3) Other income, net 3.2 4.3 1.1 5.8 Income from continuing operations before income taxes 63.3 20.6 224.8 87.3 Income tax (expense) benefit (14.8) 7.0 (54.1) (11.0) Net income from continuing operations 48.5 27.6 170.7 76.3 Income (loss) from discontinued operations, net of income taxes — 0.8 — (0.1) Net income 48.5 28.4 170.7 76.2 Net (income) loss attributable to noncontrolling interests (0.2) 0.2 (1.2) (0.5) Net income attributable to Avient common shareholders $ 48.3 $ 28.6 $ 169.5 $ 75.7 Earnings per share attributable to Avient common shareholders - Basic: Continuing operations $ 0.53 $ 0.30 $ 1.86 $ 0.83 Discontinued operations — 0.01 — — Total $ 0.53 $ 0.31 $ 1.86 $ 0.83 Earnings per share attributable to Avient common shareholders - Diluted: Continuing operations $ 0.52 $ 0.30 $ 1.84 $ 0.83 Discontinued operations — 0.01 — — Total $ 0.52 $ 0.31 $ 1.84 $ 0.83 Cash dividends declared per share of common stock $ 0.2700 $ 0.2575 $ 1.0425 $ 1.0000 Weighted-average shares used to compute earnings per common share: Basic 91.4 91.2 91.3 91.1 Diluted 92.2 91.9 92.0 91.8 9 Attachment 3 Avient Corporation Summary of Special Items (Unaudited) (In millions, except per share data) Special items (1) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Cost of sales: Restructuring costs, including accelerated depreciation $ (4.6) $ (2.0) $ 1.0 $ (11.9) Environmental remediation costs (6.8) (17.2) (35.0) (69.7) Reimbursement of previously incurred environmental costs 34.7 1.6 34.7 1.6 Impact on cost of sales 23.3 (17.6) 0.7 (80.0) Selling and administrative expense: Restructuring and employee separation costs (2.6) (1.1) (9.2) (14.9) Legal and other (0.3) (6.1) (10.4) (15.2) Acquisition related costs — (1.3) (2.5) (5.9) Impact on selling and administrative expense (2.9) (8.5) (22.1) (36.0) Impact on operating income 20.4 (26.1) (21.4) (116.0) Interest expense, net - financing costs — (0.1) (2.3) (2.3) Pension and post retirement mark-to-market adjustments and other 3.5 3.8 3.6 3.7 Impact on other income, net 3.5 3.8 3.6 3.7 Impact on income from continuing operations before income taxes 23.9 (22.4) (20.1) (114.6) Income tax (expense) benefit on above special items (5.8) 4.5 6.1 27.7 Tax adjustments(2) (0.1) 12.5 (1.9) 7.6 Impact of special items on net income from continuing operations $ 18.0 $ (5.4) $ (15.9) $ (79.3) Diluted earnings per common share impact $ 0.20 $ (0.06) $ (0.17) $ (0.86) Weighted average shares used to compute adjusted earnings per share: Diluted 92.2 91.9 92.0 91.8 (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; settlement gains or losses and mark-to- market adjustments associated with 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 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; and the effect of changes in accounting principles or other such laws or provisions affecting reported results. (2) Tax adjustments include the net tax impact from non-recurring income tax items and certain adjustments to uncertain tax position reserves and valuation allowances. 10 Attachment 4 Avient Corporation Condensed Consolidated Balance Sheets (Unaudited) (In millions) Year Ended December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 544.5 $ 545.8 Accounts receivable, net 399.5 399.9 Inventories, net 346.8 347.0 Other current assets 131.3 114.9 Total current assets 1,422.1 1,407.6 Property, net 955.3 1,028.9 Goodwill 1,659.7 1,719.3 Intangible assets, net 1,450.4 1,590.8 Operating lease assets, net 89.1 65.3 Deferred income tax assets 81.3 92.3 Other non-current assets 153.2 64.3 Total assets $ 5,811.1 $ 5,968.5 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term and current portion of long-term debt $ 7.7 $ 9.5 Accounts payable 417.4 432.3 Accrued expenses and other current liabilities 331.0 331.8 Total current liabilities 756.1 773.6 Non-current liabilities: Long-term debt 2,059.3 2,070.5 Deferred income taxes 260.4 281.6 Other non-current liabilities 405.7 504.8 Total non-current liabilities 2,725.4 2,856.9 SHAREHOLDERS' EQUITY Avient shareholders’ equity 2,313.8 2,319.2 Noncontrolling interest 15.8 18.8 Total equity 2,329.6 2,338.0 Total liabilities and equity $ 5,811.1 $ 5,968.5 11 Attachment 5 Avient Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Year Ended December 31, 2024 2023 Operating activities Net income $ 170.7 $ 76.2 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 179.7 188.8 Increase in environmental insurance receivable (34.0) — Deferred income tax benefit (23.8) (61.3) Share-based compensation expense 15.4 13.2 Changes in assets and liabilities, net of the effect of acquisitions: (Increase) decrease in accounts receivable (15.2) 38.6 (Increase) decrease in inventories (13.7) 24.3 Increase (decrease) in accounts payable 0.3 (22.2) Decrease in pension, retirement benefits and deferred compensation (34.3) (8.7) Taxes paid on gain on sale of business — (104.1) (Decrease) increase in environmental obligations (11.2) 38.9 Accrued expenses and other assets and liabilities, net 22.9 17.9 Net cash provided by operating activities 256.8 201.6 Investing activities Capital expenditures (121.9) (119.4) Net proceeds from divestiture — 7.3 Proceeds from plant closures 3.4 7.6 Other investing activities (2.1) 10.3 Net cash used by investing activities (120.6) (94.2) Financing activities Proceeds from long-term borrowings 650.0 — Payments on long-term borrowings (660.9) (105.8) Cash dividends paid (94.0) (90.2) Payments on withholding tax on share awards (6.4) (3.4) Debt financing costs (9.6) (2.3) Net cash used by financing activities (120.9) (201.7) Effect of exchange rate changes on cash (16.6) (1.0) Decrease in cash and cash equivalents (1.3) (95.3) Cash and cash equivalents at beginning of year 545.8 641.1 Cash and cash equivalents at end of year $ 544.5 $ 545.8 12 Attachment 6 Avient Corporation Business Segment Operations (Unaudited) (In millions) Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) at the segment level does not include: special items as defined in Attachment 3; corporate general and administration costs that are not allocated to segments; intersegment sales and profit eliminations; share-based compensation costs; and certain other items that are not included in the measure of segment profit and loss that is reported to and reviewed by the chief operating decision maker.