https://www.avient.com/sites/default/files/2023-03/AVNT Mar 2023 Earnings Presentation.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 strategic objectives and successfully integrate acquisitions, including Avient Protective Materials (APM); • 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 Use of Non-GAAP Measures This presentation includes the use of both GAAP (generally accepted accounting principles) and non-GAAP financial measures.
Globalization Positions us to serve our customers consistently, everywhere in the world.
EPS (1) $0.14 $2.67 $3.04 2006 2018 2022PF TOP-TIER SUSTAINABILITY PERFORMANCE AND RECOGNITION Industry Sustainability Standards 90th percentile 84th ESG Ratings Performance 3 1 4 14 PEOPLE C U L T U R E I S E V E R Y T H I N G Community Service 7x Safer than Industry Average World-Class Safety Leadership Development Over $17 million raised since 2010 Diversity & Inclusion 15 2022 RE SU LT S Q4 EBITDA BRIDGE (PRO FORMA TOTAL COMPANY) 17 $ millions CAI: Price / Mix 42 Inflation (20) SEM: Price / Mix 14 Inflation (10) Net Price Benefit 26 Wage and Energy Inflation (13) Clariant Color Integration Synergies 4 Incentives, Other Employee Costs 21 FX (10) Q4 2022 $107 Adjusted EBITDA Q4 2021 $ 132 Demand (50) Russia Import Sales (3) • Demand contraction especially prevalent in EMEA and Asia • Pricing continues to cover inflation of raw materials, wages and energy PROVEN TRACK RECORD OF STRONG AND IMPROVING FREE CASH FLOW GENERATION 18 • Periods of economic weakness have driven higher levels of cash generation due to working capital management • Anticipate continued strong free cash flow generation and conversion despite global uncertainty 78% 78% 80% 80% 81% 78% 84% 83% 80% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2014 2015 2016 2017 2018 2019 2020 2021 2022 0 50 100 150 200 250 300 350 400 F re e C as h F lo w C o n ve rs io n F re e C as h F lo w FCF $ AVNT FCF Conversion % S&P FCF Conversion % Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA. 2020 is pro forma for Clariant Color and 2022 is pro forma for Avient Protective Materials. $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/2025-07/Stan-Tone Quartz Countertops Case Study Snapshot.pdf
BUILDING MATERIALS COMPANY Q U A R T Z C O U N T E R T O P S • Offer custom color design for new product development • Provide regulatory support to help achieve compliance with new formulations • Deliver reliable color consistency • Meet high-volume, global production needs • Developed custom colorant technology to support end applications for new products • Provided effective global EH&S and regulatory support to help mitigate risk • Enabled lot-to-lot color consistency with exceptional dispersion uniformity • Met the need for a high degree of material consumption leveraging our global footprint Stan-Tone HCC Vinyl Paste Dispersions KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2023-08/Avient General Purchase Conditions.pdf
Avient Terms and Conditions of Purchase for Goods and/or Services These Terms and Conditions of Purchase for Goods and/or Services (“Terms of Purchase”) apply to and form an integral part of all requests for proposal, quotations and Purchase Orders.
Services” are the services and/or all pertaining deliverables to be provided as specified in the applicable Purchase Order.
Avient Terms and Conditions of Purchase for Goods and/or Services 3.2.2 Asia.
https://www.avient.com/sites/default/files/2020-12/onflex-s-ke-oscillating-sprinkler.pdf
LEADING GARDEN TOOLS BRAND O S C I L L A T I N G S P R I N K L E R S • Superior abrasion resistance performance • Ability to pass standard UV testing as well as the customer’s more stringent UV criteria • Global support and material availability • Developed a customized TPE material with superior UV resistance, adhesion to ABS, and demolding • Leveraged in-house UV chamber tests to exceed UV parameter requirements • Worked closely with customer’s product development, engineering and quality teams to test and specify material • Supplied grade globally with local technical and manufacturing support OnFlex™ S KE Thermoplastic Elastomer KEY REQUIREMENTS WHY AVIENT?
AVIENT SOLUTION GLOBAL PRESENCE + UV RESISTANCE LEARN MORE Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2024-12/2024 Avient Executive Bios_Michael Irwin.pdf
Irwin joined Avient in 2024 after a 22-year career at 3M, where he held roles in sales, global marketing and market development leadership, and P&L responsibility for global businesses.
From 2019–2024 he served as Global Vice President for the $1.2B Abrasive Systems Division of 3M’s Safety and Industrial business group.
https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202012%2520-%2520Operational%2520Excellence.pdf
Kedrowski Page 38 Operational Excellence • Operational Excellence is a never-ending quest for improvement in response to the voice of our customers and shareholders • It is all about strengthening our capabilities to deliver value flawlessly to our customers deliver value flawlessly to our customers • It challenges us to enhance our productivity, profitability, and efficiency in all phases of our business, from safety to quality to waste elimination to environmental stewardship Page 39 Lean Six Sigma Initiative • In 2009, Lean Six Sigma was launched to improve execution skills across all businesses, functions, and global regions • A company-wide diagnostic was conducted, resulting in identification of six conducted, resulting in identification of six strategic improvement platforms • Financial targets were estimated, resources identified and trained results delivered , Page 40 PolyOne OSHA Recordable Incidence Rate 4 5 6 5.1 Safety Performance *Rubber And Plastics Manufacturing Industry (2010 Bureau of Labor Statistics). 0 1 2 3 2005 2006 2007 2008 2009 2010 2011 Industry Average 1.4 1.3 1.1 1.1 0.85 0.65 0.57 Page 41 • Exemplary on-time delivery • Best-in-class working capital % of sales 81% 87% 88% 95% 93% 92% 94% 2005 2006 2007 2008 2009 2010 2011 On-Time Delivery* Lean Six Sigma Delivering Results • Approximately $200M in cash driven by working capital improvements 16.2% 14.4% 18.9% 11.7% 9.6% 9.6% 2006 2007 2008 2009 2010 2011 WC % of Sales 2005 2006 2007 2008 2009 2010 2011 *As measured to customer request date Page 42 40.0% Percent of Associates Trained in LSS World’s Best Start-up Program in 2009* World’s Best Business Process Excellence Program in 2012* Award-Winning Lean Six Sigma Program *Both awards received from International Quality and Productivity Center 16.5% 40.0% 2009 2011 Page 43 • Globally leverage strategic supplier management best practices • Implement world class demand management processes Critical Imperatives • Improve operational reliability and efficiencies • Optimize global freight management Drive 50 – 100 basis points of gross margin expansion per year Page 44 Page 45
https://www.avient.com/sites/default/files/2024-10/Final 2_Avient Semicondcutor Packaging Case Study Snapshot 2024.pdf
SEMICONDUCTOR PACKAGING OEM S P E C I A L T Y , S T A T I C D I S S I P A T I V E P A C K A G I N G • Provide protection against electrostatic discharge (ESD) and environmental variations • Ensure highly specialized, clean manufacturing conditions • Deliver stringent quality control of ionic and metal contamination • Maintain availability of raw materials across a global supply chain • Ability to translate production globally • Protected critical electronics from ESD while providing an environmental barrier • Adhered to strict quality and cleanliness controls from raw material handling through production to help maintain high-purity standards, such as ultra-clean feeders, deionized water, and specific HVAC systems, supporting quality initiatives, including PCS reviews, eCoA, and HA assessments • Exceeded customer expectations for controlling ionic and metal contamination down to parts per billion (PPB) • Offered global capabilities with local support and material supply to meet growing semiconductor industry needs Stat-Tech Static Dissipative Formulations KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2023-09/65799-Certificate-26SEP2023%5B1%5D.pdf
All rights reserved. 65799Certificate No: Facility: Avient Austria GmbH Alfred Feierfeilstraße 3 Perchtoldsdorf 2380 Austria Facility: Avient Colorants Belgium SA Parc Scientifique Fleming, Fond Jean Pâques 1 Louvain-la-Neuve, Walloon Brabant 1348 Belgium Activity: Administration Activity: Site management, CSD – Customer Services, Manufacture, Laboratory, Supply Chain Management, Maintenance, Infrastructure, Warehouse and Transport Facility: Avient Colorants Brasil Ltda.
All rights reserved. 65799Certificate No: Facility: Avient Colorants France S.A.S. 1995 route de la Vallée du Giffre Saint-Jeoire en Faucigny 74490 France Facility: Avient Colorants Germany GmbH Kornkamp 50 Ahrensburg, Thuringia 22926 Germany Activity: Administration, Site management, Manufacture, Laboratory, Procurement, Maintenance, Infrastructure, Warehouse and Transport Activity: Administration, Site management, Manufacture, Laboratory, Procurement, Maintenance, Infrastructure, Warehouse and Transport Facility: Avient Colorants Germany GmbH Hohenrhein 1 Lahnstein, Thuringia 56112 Germany Facility: Avient Guatemala S.A. 27 Avenida 34–11, Zona 12 Parque Global 1012 Guatemala Activity: Administration, Site management, Manufacture, Laboratory, Maintenance, Infrastructure, Warehouse and Transport Activity: Administration, Site management, Manufacture, Laboratory, Procurement, Maintenance, Infrastructure, Warehouse and Transport Facility: Avient (Chile) SpA Camino a Melipilla 15170 Maipú, Región Metropolitana de Santiago 9250000 Chile Facility: Avient Colombia S.A.S.
Industri Kecil & Sederhana Simpang Ampat, Penang 14120 Malaysia Activity: Central Office, Administration, Site management (Facitilities, EHS), Marketing and Sales, SCM, Group Procurement Services, GBS and Logistics, GTI-Engineering and R&D, Technical Application Laboratories, Legal, Finance, HR, IT, RSRA, SMD and Learning, Communication Activity: Administration, Site management, Manufacture, Laboratory, Procurement, Maintenance, Infrastructure, Warehouse and Transport Facility: Avient Colorants MX S.A. de C.V.
https://www.avient.com/sites/default/files/2021-02/custom-gls-tpe-touriquet-band-case-study-one-pager.pdf
GLOBAL ELASTIC & RUBBER PRODUCT MANUFACTURER T O U R N I Q U E T B A N D • Hardness 45, shore A • Thickness 0.5mm and Tensile set
All Rights Reserved. https://www.avient.com/products/thermoplastic-elastomers/versaflex-thermoplastic-elastomers Global Elastic & Rubber Product Manufacturer
https://www.avient.com/sites/default/files/2024-12/Versaflex CE -Gaming Wheel - Case study Snapshot.pdf
GLOBAL CONSUMER ELECTRONICS BRAND G A M I N G W H E E L G R I P • Soft touch feel • Good bonding with PC+20GF substrate • Non-blooming surface finish • Replaced leather with a TPE to improve production efficiency through overmolding • Provided a recyclable alternative to silicone, giving the customer the choice of more sustainable grip material • Offered durable solution with good wear resistance and excellent chemical and oil resistance Versaflex CE TPE KEY REQUIREMENTS WHY AVIENT?
LEARN MORE https://www.avient.com/products/thermoplastic-elastomers/versaflex-thermoplastic-elastomers Slide 1: Global consumer electronics brand