https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Credit%2520Suisse%2520Conference%2520w%2520non-GAAP%252009%252018%25202014.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
The final amount of charges resulting from the planned North American asset realignment and the Company’s ability to realize anticipated
savings and operational benefits from the asset realignment;
Our ability to achieve the strategic and other objectives relating to the acquisition of Spartech Corporation, including any expected synergies;
Our ability to successfully integrate Spartech and achieve the expected results of the acquisition, including, without limita tion, the acquisition
being accretive;
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 financial condition of our customers, including the ability of customers (especially those that may be highly leveraged a nd those with
inadequate liquidity) to maintain their credit availability;
The speed and extent of an economic recovery, including the recovery of the housing market;
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 in the markets 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, employee productivity goals, and an inability to raise or sustain prices for products or services;
An inability to raise or sustain prices for products or services;
An inability to maintain appropriate relations with unions and employees;
The inability to achieve expected results from our acquisition activities;
Our ability to continue to pay cash dividends;
The amount and timing of repurchases of our common shares, if any; and
Other factors affecting our business beyond our control, including, without limitation, changes in the general economy, chang es in interest rates
and changes in the rate of inflation
S&P 500
-150%
-50%
50%
150%
250%
350%
450%
550%
POL S&P 500
All time high of
$43.34
July 1st, 2014
PolyOne Corporation Page 9
2006 2014 YTD 2015
“Where we were” “Where we are” Target
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 15.2% 12 – 16%
Global Specialty Engineered
Materials
1.1% 11.8% 12 – 16%
Designed Structures & Solutions -- 7.1% 8 – 10%
Performance Products &
Solutions
5.5% 8.0% 9 – 12%
Distribution 2.6% 6.0% 6 – 7.5%
2) Specialty Platform % of
Operating Income
6.0% 66% 65 – 75%
3) ROIC* 5.0% 9.9% 15%
4) Adjusted EPS Growth N/A 40%
Double Digit
Expansion
Proof of Performance & 2015 Goals
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
(Est. in 2012)
PolyOne Corporation Page 10
Bridge to $2.50 Adjusted EPS by 2015
2015 EPS: $2.50
2013 EPS: $1.31
Continued Gross Margin
Expansion
Mergers & Acquisitions
Spartech Accretion
Incremental Share Buybacks
Ongoing LSS Programs
(50-100 bps/yr)
Accelerated Innovation
& Mix Improvement
Several Levers to
Drive Growth
Mid Single Digit Revenue CAGR
PolyOne Corporation Page 11
Innovation Drives Earnings Growth
*Percentage of Specialty Platform revenue from products introduced in last five years
$20
$53
2006 2013
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index
Progression*
14.3%
30.7%
2006 2013
Specialty Platform
Gross Margin %
19.5%
43.0%
2006 2013
Specialty Vitality Index Target ≥ 35%
PolyOne Corporation Page 12
Prototype Frame
Opportunity
Scale-up &
Test Market
Build
Business Case
Commercial
Launch
Phase
1
Phase
2
Phase
3
Phase
4
Phase
5
4
11
5
10
6
9
3 4 2
15
9
1
10
4
Breakthrough
Platform
Derivative
A Rich Pipeline of Opportunity*
Number of Projects 25 14 19 17 18 93
Addressable Market
($ millions)
TBD TBD $800 $450 $450 $1,700
*Pipeline as of May 29, 2014 as presented during our Innovation Day
PolyOne Corporation Page 13
Megatrends Aligned with Key End Markets
Decreasing
Dependence
on Fossil
Fuels
Protecting
the
Environment
Improving
Health and
Wellness
Megatrend End Markets
Globalizing
and
Localizing
Health &
Wellness
Transportation
Packaging
Consumer
PolyOne Corporation Page 14
60%
100%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2014
Pension Funding**
As of June 30, 2014
Debt Maturities & Pension Funding – 6/30/14
Net Debt / EBITDA* = 1.8x
$48
$317
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Debt Maturities
As of June 30, 2014
($ millions)
Coupon Rates: 7.500% 7.375% 5.250%
** includes US-qualified pension plans only *TTM 6/30/2014
PolyOne Corporation Page 15
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
$0.16
$0.20
$0.24
$0.32
$0.10
$0.20
$0.30
$0.40
2011 2012 2013 2014
Annual Dividend
Expanding our sales, marketing,
and technical capabilities
Targets that expand our:
• Specialty offerings
• End market presence
• Geographic footprint
• Operating Margin
Synergy opportunities
Adjacent material solutions
Repurchased 1.8 million shares in
Q2 2014
Repurchased 8.2 million
shares since early 2013
11.8 million shares are
available for
repurchase under the
current authorization
Organic
Growth
Acquisitions
Share
Repurchases
Dividends
Investing in operational and
LSS initiatives (including
synergy capture)
Manufacturing alignment
PolyOne Corporation Page 16
PolyOne Core Values
Innovation
Collaboration
Excellence
PolyOne Corporation Page 17
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520KeyBanc%2520Conference%2520w%2520nonGAAP.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
The final amount of charges resulting from the planned North American asset realignment and the Company’s ability to realize anticipated
savings and operational benefits from the asset realignment;
Our ability to achieve the strategic and other objectives relating to the acquisition of Spartech Corporation, including any expected synergies;
Our ability to successfully integrate Spartech and achieve the expected results of the acquisition, including, without limita tion, the acquisition
being accretive;
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 financial condition of our customers, including the ability of customers (especially those that may be highly leveraged a nd those with
inadequate liquidity) to maintain their credit availability;
The speed and extent of an economic recovery, including the recovery of the housing market;
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 in the markets 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, employee productivity goals, and an inability to raise or sustain prices for products or services;
An inability to raise or sustain prices for products or services;
An inability to maintain appropriate relations with unions and employees;
The inability to achieve expected results from our acquisition activities;
Our ability to continue to pay cash dividends;
The amount and timing of repurchases of our common shares, if any; and
Other factors affecting our business beyond our control, including, without limitation, changes in the general economy, chang es in interest rates
and changes in the rate of inflation
S&P 500
-150%
-50%
50%
150%
250%
350%
450%
550%
POL S&P 500
All time high of
$43.34
July 1st, 2014
PolyOne Corporation Page 9
2006 2014 YTD 2015
“Where we were” “Where we are” Target
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 15.2% 12 – 16%
Global Specialty Engineered
Materials
1.1% 11.8% 12 – 16%
Designed Structures & Solutions -- 7.1% 8 – 10%
Performance Products &
Solutions
5.5% 8.0% 9 – 12%
Distribution 2.6% 6.0% 6 – 7.5%
2) Specialty Platform % of
Operating Income
6.0% 66% 65 – 75%
3) ROIC* 5.0% 9.9% 15%
4) Adjusted EPS Growth N/A 40%
Double Digit
Expansion
Proof of Performance & 2015 Goals
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
(Est. in 2012)
PolyOne Corporation Page 10
Bridge to $2.50 Adjusted EPS by 2015
2015 EPS: $2.50
2013 EPS: $1.31
Continued Gross Margin
Expansion
Mergers & Acquisitions
Spartech Accretion
Incremental Share Buybacks
Ongoing LSS Programs
(50-100 bps/yr)
Accelerated Innovation
& Mix Improvement
Several Levers to
Drive Growth
Mid Single Digit Revenue CAGR
PolyOne Corporation Page 11
Innovation Drives Earnings Growth
*Percentage of Specialty Platform revenue from products introduced in last five years
$20
$53
2006 2013
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index
Progression*
14.3%
30.7%
2006 2013
Specialty Platform
Gross Margin %
19.5%
43.0%
2006 2013
Specialty Vitality Index Target ≥ 35%
PolyOne Corporation Page 12
Prototype Frame
Opportunity
Scale-up &
Test Market
Build
Business Case
Commercial
Launch
Phase
1
Phase
2
Phase
3
Phase
4
Phase
5
4
11
5
10
6
9
3 4 2
15
9
1
10
4
Breakthrough
Platform
Derivative
A Rich Pipeline of Opportunity*
Number of Projects 25 14 19 17 18 93
Addressable Market
($ millions)
TBD TBD $800 $450 $450 $1,700
*Pipeline as of May 29, 2014 as presented during our Innovation Day
PolyOne Corporation Page 13
Megatrends Aligned with Key End Markets
Decreasing
Dependence
on Fossil
Fuels
Protecting
the
Environment
Improving
Health and
Wellness
Megatrend End Markets
Globalizing
and
Localizing
Health &
Wellness
Transportation
Packaging
Consumer
PolyOne Corporation Page 14
60%
100%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2014
Pension Funding**
As of June 30, 2014
Debt Maturities & Pension Funding – 6/30/14
Net Debt / EBITDA* = 1.8x
$48
$317
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Debt Maturities
As of June 30, 2014
($ millions)
Coupon Rates: 7.500% 7.375% 5.250%
** includes US-qualified pension plans only *TTM 6/30/2014
PolyOne Corporation Page 15
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
$0.16
$0.20
$0.24
$0.32
$0.10
$0.20
$0.30
$0.40
2011 2012 2013 2014
Annual Dividend
Expanding our sales, marketing,
and technical capabilities
Targets that expand our:
• Specialty offerings
• End market presence
• Geographic footprint
• Operating Margin
Synergy opportunities
Adjacent material solutions
Repurchased 1.8 million shares in
Q2 2014
Repurchased 8.2 million
shares since early 2013
11.8 million shares are
available for
repurchase under the
current authorization
Organic
Growth
Acquisitions
Share
Repurchases
Dividends
Investing in operational and
LSS initiatives (including
synergy capture)
Manufacturing alignment
PolyOne Corporation Page 16
PolyOne Core Values
Innovation
Collaboration
Excellence
PolyOne Corporation Page 17
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
https://www.avient.com/investor-center/news/polyone-barrier-technologies-enable-sustainability-and-recyclability-packaging
According to leading market research firms, in-demand barrier technologies affect not only shelf life, but also brand integrity, product aesthetics, lightweighting, and ultimately, recyclability.
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.
How can we help you?
https://www.avient.com/company/sustainability/sustainability-report/goals-commitments/about-us
These personal values begin with each of us—the judgments and decisions we make as individuals affect the way Avient is viewed in the marketplace and in the communities where we work.
How can we help you?
https://www.avient.com/idea/electric-car-quickens-pulse-color
Reduced material costs for the affected parts by 16 percent
How can we help you?
https://www.avient.com/sites/default/files/2022-11/Avient Announces Third Quarter 2022 Results.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; the current and potential future impact of the COVID-19 pandemic on our
business, results of operations, financial position or cash flows including, without limitation, any
supply chain and logistics issues; changes in laws and regulations regarding plastics in
jurisdictions where we conduct business; 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; our ability to achieve the
strategic and other objectives relating to the Avient Protective Materials business; an inability to
raise or sustain prices for products or services; 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; and 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 and
any recessionary conditions.
The Company does not provide reconciliations of forward-looking non-GAAP financial measures,
such as adjusted EPS, 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.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022 2021 2022 2021
Sales:
Color, Additives and Inks $ 565.6 $ 586.6 $ 1,864.2 $ 1,820.3
Specialty Engineered Materials 258.2 231.7 743.6 685.3
Corporate and eliminations (0.5) (0.3) (1.3) 2.9
Sales $ 823.3 $ 818.0 $ 2,606.5 $ 2,508.5
Gross margin:
Color, Additives and Inks $ 161.3 $ 172.1 $ 546.8 $ 563.0
Specialty Engineered Materials 66.9 61.4 201.3 192.6
Corporate and eliminations (32.8) (17.9) (37.4) (28.3)
Gross margin $ 195.4 $ 215.6 $ 710.7 $ 727.3
Selling and administrative expense:
Color, Additives and Inks $ 92.7 $ 105.3 $ 290.1 $ 321.1
Specialty Engineered Materials 35.5 31.4 96.4 94.2
Corporate and eliminations 26.6 26.1 81.3 82.4
Selling and administrative expense $ 154.8 $ 162.8 $ 467.8 $ 497.7
Operating income:
Color, Additives and Inks $ 68.6 $ 66.8 $ 256.7 $ 241.9
Specialty Engineered Materials 31.4 30.0 104.9 98.4
Corporate and eliminations (59.4) (44.0) (118.7) (110.7)
Operating income $ 40.6 $ 52.8 $ 242.9 $ 229.6
Depreciation & amortization:
Color, Additives and Inks $ 24.2 $ 26.6 $ 76.1 $ 79.2
Specialty Engineered Materials 12.9 7.9 28.4 23.8
Corporate and eliminations 2.7 2.1 9.2 4.1
Depreciation & Amortization $ 39.8 $ 36.6 $ 113.7 $ 107.1
Earnings before interest, taxes, depreciation and
amortization (EBITDA):
Color, Additives and Inks $ 92.8 $ 93.4 $ 332.8 $ 321.1
Specialty Engineered Materials 44.3 37.9 133.3 122.2
Corporate and eliminations (56.7) (41.9) (109.5) (106.6)
Other (expense) income, net (32.3) 1.6 (31.3) 4.3
EBITDA $ 48.1 $ 91.0 $ 325.3 $ 341.0
13
Attachment 7
Avient Corporation
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(In millions, except per share data)
Senior management uses gross margin before special items and operating income before special items to assess performance
and allocate resources because senior management believes that these measures are useful in understanding current profitability
levels and how it may serve as a basis for future performance.
https://www.avient.com/sites/default/files/2023-02/AVNT Q4 2022 Earnings Press Release-1.pdf
The Company does not provide reconciliations of forward-looking non-GAAP financial measures,
such as adjusted EPS and adjusted EBITDA, 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.
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; the current and
potential future impact of the COVID-19 pandemic on our business, results of operations, financial
position or cash flows including, without limitation, any supply chain and logistics issues; changes in
laws and regulations regarding plastics in jurisdictions where we conduct business; 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; our ability to achieve strategic objectives and successfully integrate acquisitions, including
Avient Protective Materials; an inability to raise or sustain prices for products or services; 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; and 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 and any recessionary conditions.
Three Months Ended
December 31,
Year Ended
December 31,
2022 2021 2022 2021
Sales:
Color, Additives and Inks $ 490.8 $ 581.3 $ 2,355.0 $ 2,401.6
Specialty Engineered Materials 300.8 226.3 1,044.4 911.6
Corporate (1.2) (0.5) (2.5) 2.3
Sales $ 790.4 $ 807.1 $ 3,396.9 $ 3,315.5
Gross margin:
Color, Additives and Inks $ 134.5 $ 164.5 $ 681.3 $ 727.5
Specialty Engineered Materials 82.4 58.3 283.7 250.9
Corporate (44.9) (6.2) (82.3) (34.6)
Gross margin $ 172.0 $ 216.6 $ 882.7 $ 943.8
Selling and administrative expense:
Color, Additives and Inks $ 90.2 $ 103.3 $ 380.3 $ 424.4
Specialty Engineered Materials 47.2 31.2 143.6 125.4
Corporate 34.2 31.9 115.5 114.3
Selling and administrative expense $ 171.6 $ 166.4 $ 639.4 $ 664.1
Operating income:
Color, Additives and Inks $ 44.3 $ 61.2 $ 301.0 $ 303.1
Specialty Engineered Materials 35.2 27.1 140.1 125.5
Corporate (79.1) (38.1) (197.8) (148.9)
Operating income $ 0.4 $ 50.2 $ 243.3 $ 279.7
14
Attachment 7
Avient Corporation
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(In millions, except per share data)
Senior management uses gross margin before special items and operating income before special items to assess performance
and allocate resources because senior management believes that these measures are useful in understanding current profitability
levels and how it may serve as a basis for future performance.
https://www.avient.com/sites/default/files/2024-10/Avient Announces Third Quarter 2024 Results.pdf
The Company does not provide reconciliations of forward-looking non-GAAP financial
measures, such as adjusted EPS and adjusted EBITDA, 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.
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; and 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.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024 2023 2024 2023
Sales:
Color, Additives and Inks $ 521.5 $ 486.5 $ 1,578.8 $ 1,548.0
Specialty Engineered Materials 294.6 267.9 917.1 878.4
Corporate (0.9) (0.7) (2.0) (2.6)
Sales $ 815.2 $ 753.7 $ 2,493.9 $ 2,423.8
Gross margin:
Color, Additives and Inks $ 172.8 $ 156.8 $ 528.5 $ 482.9
Specialty Engineered Materials 89.0 78.3 290.7 263.7
Corporate (0.4) (39.8) (22.0) (63.0)
Gross margin $ 261.4 $ 195.3 $ 797.2 $ 683.6
Selling and administrative expense:
Color, Additives and Inks $ 97.3 $ 92.3 $ 292.1 $ 284.8
Specialty Engineered Materials 52.6 48.0 158.1 150.6
Corporate 34.3 20.7 103.3 94.5
Selling and administrative expense $ 184.2 $ 161.0 $ 553.5 $ 529.9
Operating income:
Color, Additives and Inks $ 75.5 $ 64.5 $ 236.4 $ 198.1
Specialty Engineered Materials 36.4 30.3 132.6 113.1
Corporate (34.7) (60.5) (125.3) (157.5)
Operating income $ 77.2 $ 34.3 $ 243.7 $ 153.7
Depreciation & amortization:
Color, Additives and Inks $ 21.9 $ 24.6 $ 65.6 $ 76.1
Specialty Engineered Materials 20.7 20.5 61.1 61.6
Corporate 2.5 1.3 7.6 6.8
Depreciation & amortization $ 45.1 $ 46.4 $ 134.3 $ 144.5
Earnings before interest, taxes, depreciation and
amortization (EBITDA):
Color, Additives and Inks $ 97.4 $ 89.1 $ 302.0 $ 274.2
Specialty Engineered Materials 57.1 50.8 193.7 174.7
Corporate (32.2) (59.2) (117.7) (150.7)
Other (expense) income, net (0.3) 1.0 (2.1) 1.5
EBITDA from continuing operations $ 122.0 $ 81.7 $ 375.9 $ 299.7
Special items, before tax 9.7 43.2 44.0 92.2
Interest expense included in special items (1.3) (2.2) (2.3) (2.2)
Depreciation & amortization included in special items (0.4) — (1.2) (1.9)
Adjusted EBITDA $ 130.0 $ 122.7 $ 416.4 $ 387.8
12
Attachment 7
Avient Corporation
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(In millions, except per share data)
Senior management uses gross margin before special items and operating income before special items to assess performance
and allocate resources because senior management believes that these measures are useful in understanding current
profitability levels and how it may serve as a basis for future performance.
https://www.avient.com/sites/default/files/2025-02/News Release - AVNT-2024.12.31-News Release 2.12.25 2PM_0.pdf
The Company does not provide reconciliations of forward-looking non-GAAP financial
measures, such as adjusted EPS and adjusted EBITDA, 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.
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; our ability to service our indebtedness and restrictions on
our current and future operations due to our indebtedness; 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; and 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.
Three Months Ended
December 31,
Year Ended
December 31,
2024 2023 2024 2023
Sales:
Color, Additives and Inks $ 467.7 $ 459.4 $ 2,046.5 $ 2,007.4
Specialty Engineered Materials 279.7 259.8 1,196.8 1,138.2
Corporate (0.9) (0.2) (2.9) (2.8)
Sales $ 746.5 $ 719.0 $ 3,240.4 $ 3,142.8
Gross margin:
Color, Additives and Inks $ 152.6 $ 148.3 $ 681.1 $ 631.2
Specialty Engineered Materials 84.2 78.1 374.9 341.8
Corporate 22.7 (17.5) 0.7 (80.5)
Gross margin $ 259.5 $ 208.9 $ 1,056.7 $ 892.5
Selling and administrative expense:
Color, Additives and Inks $ 92.8 $ 86.5 $ 384.9 $ 371.3
Specialty Engineered Materials 49.6 48.7 207.7 199.3
Corporate 31.5 30.6 134.8 125.1
Selling and administrative expense $ 173.9 $ 165.8 $ 727.4 $ 695.7
Operating income:
Color, Additives and Inks $ 59.8 $ 61.8 $ 296.2 $ 259.9
Specialty Engineered Materials 34.6 29.4 167.2 142.5
Corporate (8.8) (48.1) (134.1) (205.6)
Operating income $ 85.6 $ 43.1 $ 329.3 $ 196.8
Depreciation and amortization:
Color, Additives and Inks $ 21.9 $ 22.2 $ 87.5 $ 98.3
Specialty Engineered Materials 21.0 19.8 82.1 81.5
Corporate 2.5 2.2 10.1 9.0
Depreciation and amortization $ 45.4 $ 44.2 $ 179.7 $ 188.8
Earnings before interest, taxes, depreciation and
amortization (EBITDA):
Color, Additives and Inks $ 81.7 $ 84.0 $ 383.7 $ 358.2
Specialty Engineered Materials 55.6 49.2 249.3 224.0
Corporate (6.3) (45.9) (124.0) (196.6)
Other income, net 3.2 4.3 1.1 5.8
EBITDA from continuing operations $ 134.2 $ 91.6 $ 510.1 $ 391.4
Special items, before tax (23.9) 22.4 20.1 114.6
Interest expense included in special items — (0.1) (2.3) (2.3)
Depreciation and amortization included in special items (0.3) — (1.5) (1.9)
Adjusted EBITDA $ 110.0 $ 113.9 $ 526.4 $ 501.8
13
Attachment 7
Avient Corporation
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(In millions, except per share data)
Senior management uses operating income before special items to assess performance and allocate resources because senior
management believes that this measure is most useful in understanding current profitability levels and how it may serve as a
basis for future performance.
https://www.avient.com/sites/default/files/2025-05/Avient Announces First Quarter 2025 Results_0.pdf
The Company does not provide reconciliations of forward-looking non-GAAP financial
measures, such as adjusted EPS and adjusted EBITDA, 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.
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; our ability to service our indebtedness and restrictions on
our current and future operations due to our indebtedness; 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; and 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, tariffs and any
recessionary conditions.
Three Months Ended
March 31,
2025 2024
Sales:
Color, Additives and Inks $ 519.7 $ 515.3
Specialty Engineered Materials 308.4 314.4
Corporate (1.5) (0.7)
Sales $ 826.6 $ 829.0
Gross margin:
Color, Additives and Inks $ 173.1 $ 171.2
Specialty Engineered Materials 97.8 107.0
Corporate (7.7) —
Gross margin $ 263.2 $ 278.2
Selling and administrative expense:
Color, Additives and Inks $ 94.5 $ 96.4
Specialty Engineered Materials 50.7 53.6
Corporate 117.3 34.2
Selling and administrative expense $ 262.5 $ 184.2
Operating income:
Color, Additives and Inks $ 78.6 $ 74.8
Specialty Engineered Materials 47.1 53.4
Corporate (125.0) (34.2)
Operating income $ 0.7 $ 94.0
Depreciation & amortization:
Color, Additives and Inks $ 21.7 $ 21.9
Specialty Engineered Materials 21.5 19.6
Corporate 2.1 2.8
Depreciation & amortization $ 45.3 $ 44.3
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 100.3 $ 96.7
Specialty Engineered Materials 68.6 73.0
Corporate (122.9) (31.4)
Other expense, net (0.4) (0.9)
EBITDA $ 45.6 $ 137.4
Special items, before tax 101.2 6.2
Interest expense included in special items (1.7) —
Depreciation & amortization included in special items (0.4) (0.5)
Adjusted EBITDA $ 144.7 $ 143.1
12
Attachment 7
Avient Corporation
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(In millions, except per share data)
Senior management uses operating income before special items to assess performance and allocate resources because senior
management believes that this measure is most useful in understanding current profitability levels and how it may serve as a
basis for future performance.