https://www.avient.com/sites/default/files/resources/NOVEL_THERMOPLASTIC_ELASTOMERS_FOR_UNIVERSAL_OVERMOLDING_ON_DISSIMILAR_THERMOPLASTICS.pdf
The substrates
materials employed for overmolding were PP, ABS, PC/ABS, polyester, Nylon and POM.
Compared to other substrates,
Nylon and polyacetal, i.e., POM, appear to be difficult to bond.
https://www.avient.com/sites/default/files/2021-09/avnt-q2-2021-earnings-presentation.pdf
Q 2 2021 P E RFO R MA N CE
U P DAT E
$69
$122
$0.42
$0.87
Q2 2021 – ORGANIC PERFORMANCE
4
Sales Adjusted Operating Income
$870
$1,235
+ 42%
+ 77% + 107%
(1) (1) (1)
Q2 2021 SEGMENT PERFORMANCE
5
CAI
$488
$624
($ in millions)
SEM Distribution
$54
$86
+28%
+59%
$239
$404
$15
$24
+69%
+60%
$159
$241
$17
$37
+52%
+118%
SPECIALTY EBITDA MARGIN EXPANSION
6
CAI
(1) 2018-2020 financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
15.3% 15.2%
16.2%
18.5%
2018 2019 2020 YTD 2021
14.8% 15.2%
17.6%
19.1%
2018 2019 2020 YTD 2021
SEM
• Continued portfolio transformation to
high-growth end markets and
sustainable solutions
• Clariant Masterbatch synergy realization
• Investments in composites and outdoor
high performance applications drive
growth and mix improvements
CAI EBITDA MARGIN EXPANSION
7
Legacy CAI
18.9% 18.9%
20.3%
2019 2020 YTD 2021
Legacy
11.9%
13.8%
16.8%
2019 2020 YTD 2021
• Synergy capture translating to the
bottom line
• Positive mix with growth in healthcare,
consumer and packaging end-markets
• World-class vitality index of 35%
represents sales from products
introduced in the last five years.
Whether
an additional line at an existing
manufacturing plant, or a new
facility in a growing region, we
ramp-up quickly and cost-efficiently.
23
Capex / Revenue
2021E (%)
AVIENT IS ASSET LIGHT
Avient Specialty
Other
2 2 2 2 3 3 3 4 3
4 4 5 5 5 5 5 6
7
27
e
nt
e
nt
(
xc
l.
Free cash flow conversion calculated as (EBITDA – Capex) / EBITDA
Median: 81% Median: 78%
HIGH FREE CASH FLOW
CONVERSION
Avient reflects 2021 estimated EBITDA of $580M and excludes one-time synergy capture CAPEX ($20M)
87
90
86
82 80 78
73
87
82 82 79 79 78 78 77 76
71
67
46
en
t
(6)
Total Enterprise Value / 2021E EBITDA
Our current valuation with updated
guidance implies an EBITDA multiple
that is below specialty formulator
peers and the median of other
selected chemical / specialty
companies.
https://www.avient.com/sites/default/files/2023-06/AVNT June IR Conferences w_Non GAAP Recs.pdf
WHAT WE DO: WE ARE A FORMULATOR
6
CUSTOM
FORMULATION
M AY 3 , 2023
W EB CAS T
Keeping Safety First
o Relentless focus on best-in-class safety performance as an
ACC Responsible Care® organization
Exceeding Customer Expectations
o Complementary technologies and customer relationships offer
opportunity for future revenue synergies
o Proven innovation-led commercial strategy with strong brands
and participation across the full value chain
Collaboration in Innovation
o Leveraging Dyneema®, the world’s strongest fiber™, to
accelerate growth of sustainable, ultralight and high
performance applications
People – Culture is Everything
o Talented, passionate and collaborative associates drive an
effective integration strategy
o Strong Great Places to Work® scores reflect positive
integration efforts in first year
AVIENT PROTECTIVE MATERIALS INTEGRATION
8
AVIENT PROTECTIVE MATERIALS
K E Y I N D U S T R I E S
PERSONAL PROTECTION
Military • Law Enforcement • First
Responders • Body Armor • Helmets •
Vehicle Protection
50%
MARINE & SUSTAINABLE
INFRASTRUCTURE
Towing / Mooring • Aquaculture •
Floating Wind • Offshore Cranes
30%
CONSUMER
Consumer • Outdoor High Performance •
Safety Equipment
9
Figures reflect approximate proportions of 2022 sales
Q 1 P ER FO RM A N CE
Q1 2023 PERFORMANCE VS.
GUIDANCE
12
14.8%
15.8%
Adjusted EBITDA Margin %
Better-than-expected margins
driven by:
• Resilient demand for
composites and sustainable
solutions which improved
mix of higher margin
applications
• Deceleration of raw material
inflation
• Cost reduction activities
Q1 EBITDA BRIDGE
13
$ millions
CAI:
Price / Mix 19)
Inflation (4)
SEM:
Price / Mix 6)
Inflation (4)
Net Price Benefit 17)
Wage and Energy Inflation (13)
Cost Reductions 8)
FX (6)
Q1 2023 Actual $134)
Adjusted
EBITDA
Q1 2022 Pro Forma $ 176)
Demand (48) • Weak demand
conditions in-line
with previous
expectations
• Pricing continues to
cover inflation of raw
materials, wages
and energy
U.S. & Canada
38%
17%
Q1 2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
23%
Building and
6%Telecommunications
END MARKET REVENUE
(1) Total company sales and adjusted EBITDA of $846M and $134M, respectively, include intercompany sales eliminations and corporate costs
$537M $91M
$310M $64M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$134M$846M
(1)
14
Q1 2023 SALES BY REGION
Yo Y C H A N G E ( E X C L .
National Defense
budget of $842 billion submitted to Congress
in Q1 2023
• European NATO members annual defense
spend expected to increase by up to 20%
Dyneema® is the world’s strongest fiber™
One of the highest strength to weight
ratios of any material on Earth
Direct relationships with industry leading
armor manufacturers
Resistant to most chemicals, UV, and
moisture to handle any environment
Avient Confidential 18
DEFENSE
Source: US Department of Defense, defense.gov, NATO18
Source:
TRANSPORTATION
• Increased EPA regulations requiring
improved fuel efficiency, enabled in part by
lower-weight vehicles
• Automakers preparing for 2/3 of U.S.
vehicles to be 100% electric by 2032
Lightweight panels that establish both
strength and stiffness resulting in
decreased energy usage, lower emissions
Long-lasting Color applications to resist
UV exposure, temperature fluctuations
and exceed the stylistic requirements of
global automakers
19
$130
$530
$0.60
$2.40
2023 GUIDANCE
20
Sales Adjusted EBITDA
$845
$3,400
(in millions) (in millions)
CASH FLOW / LEVERAGE
21
• Maintaining free cash flow
and leverage guidance from
February earnings call
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Restructuring actions to
streamline operations and
improve profitability,
primarily in Europe
($ 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
LONG-TERM REVENUE GROWTH DRIVERS
Growth Drivers
Long-Term
Growth Rate
Sustainable Solutions 8–12%
Healthcare 8–10%
Composites 10%
Asia / LATAM 5%
Other (GDP growth) 2–3%
Avient 6.5%
22
Sustainable
Solutions
32%
Asia / LATAM
Composites
Other (GDP
Growth)
39%
• Virtual presentation to be held
September 20, 2023
• The company will be
conducting an investor-focused
presentation around our
sustainability solutions portfolio
Avient Confidential 23
SUSTAINABILITY
INVESTOR DAY
23
$340M
$405M
$455M
$550M
$790M
$915M
2016 2017 2018 2019 2020PF** 2021 2022PF***
SUSTAINABILITY FOR A BETTER TOMORROW
Revenue From Sustainable Solutions* 2016-2022
($ in millions)
Organic Future Growth Revenue Assumptions From Sustainable Solutions: 8 - 12%
24
*Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”)
**2020 is Pro Forma to include full year of the Clariant Color business
***2022 is Pro Forma for the acquisition of Avient Protective Materials and the divestiture of Distribution
$1,175M
Lightweighting
Eco-Conscious
Recycle Solutions
VOC Reduction
Sustainable Infrastructure
Human Health & Safety
Reduced Energy Use
Bio-polymers
SUSTAINABILITY NEEDS BY MARKET
B&C
• Eco-Conscious
• Carbon footprint
• Resource
conservation
• Carbon footprint
• Bio based content
• Eco-Conscious
Automotive
• Light weighting
• Recycled Content
• VOC reduction
• Recycle Solutions
• Carbon Footprint
Packaging
• Recycle Solutions
• Food waste
reduction
Common Theme: CO2 Emission Goals
Increasing Single-Use Plastic Regulation
25
INVESTING
IN INNOVATION
S U S T A I N A B I L I T Y P O R T F O L I O
26
AP P EN D IX
29
RAW MATERIAL 2022 ANNUAL PURCHASES
Performance
Additives
Pigments
12%
TiO2
Dyestuffs
2%
Polyethylene
Nylon
Polypropylene
Styrenic Block
Copolymer
Other Raw
Materials
33%
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
• Cost inflation
decelerating,
particularly for
hydrocarbon-based
raw materials
2022 pro forma results for the acquisition of Avient Protective Materials
SEGMENT DATA
U.S. & Canada
37%
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
Building and
END MARKET REVENUE
$2,355M $402M
$1,300M $272M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$592M$3,653M
(1)
9%
31
(1) Total company sales and adjusted EBITDA of $3,653M and $592M, respectively, include intercompany sales eliminations and corporate costs
C O L O R , A D D I T I V E S & I N K S
2022 REVENUE | $2 .4 B ILL ION
34%
38%
END MARKET REGION
32
34%
21%
Building &
1% Energy
2%
S P E C I A LT Y E N G I N E E R E D M AT E R I A L S
2022 PRO FORMA REVENUE | $1 .3 B ILL ION
END MARKET
52%
35%
REGION
33
19%
8%Industrial
9% Defense
Building &
32%
27%
14%
Building &
3%
1% Defense
1%
(18% of sales)
9%
2022 PROFORMA AVIENT REGIONAL SALES
BY END MARKET
27%
14%
17%
Building &
(37% of sales)Transportation
12%
Building &
US &
Canada
(40% of sales)
56%
23%
Building &
1%
LATAM
(5% of sales)
3%
34
PEER COMPARISONS
AVIENT IS ASSET LIGHT
Capex / Revenue
2023E (%)
Avient Specialty
Other Specialty /
Note: Avient reflects 2023 estimated revenue of $3,400 and estimated run-rate CAPEX of $110M.
36
4 4
4
6
8
9
FREE CASH FLOW CONVERSION
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/sites/default/files/2025-01/AVNT Dec 2022 Earnings Presentation Updated.pdf
Global Compact &
fulfilled Communication of Progress (COP)
requirements
• New Sustainability Strategy overview page including
our 2022 AIP ESG metrics
• New ESG Performance page with ESG ratings,
awards, and certifications
• Increased disclosures on carbon emissions, including
disclosure of Climate Change Scenario Analysis
• Added new Product Stewardship and Chemical
Management policies
• Enhanced data reporting for Workforce
Demographics
• Improved social disclosures on human rights,
dependent care and special leave and strategic
training management
2021 SUSTAINABILITY REPORT
Launching integrated sustainability website in parallel with report
Aligned with leading reporting frameworks
6
Released July 2022
ESG RATINGS PERFORMANCE
ESG AWARDS AND CERTIFICATIONS
ESG PERFORMANCE & AWARDS
84th
3
1
2
7
T RAN S FO R MAT IO NAL
OVE RV IE W
Avient Protective
Dyneema
®
RECENT TRANSACTIONS
Acquired Divested
$1.45 B $0.95 B
9
Distribution
UPDATED CAPITAL STRUCTURE
& LIQUIDITY
• Proceeds from completed
sale of Distribution used to
pay near-term maturing debt
to strengthen balance sheet
• Fixed/floating debt ratio of
~55/45
• Proven track record of
deleveraging following major
acquisitions through strong
free cash flow generation
• 2022 pro forma net
debt/adjusted EBITDA
expected to be 3.1x
$725 $725
$575 $500
$600
$525
$650
$650
$600
Capital Structure
Cash
$544
Undrawn
Revolver
$250
Liquidity
$3.15B
$2.40B
2030 Notes
2029 Term Loan
2026 Term Loan
2025 Notes
2023 Notes
After Dyneema
Acquisition
After Distribution
Divestiture
$794M
(1) $250M reflects estimated undrawn revolver following the divestiture of Distribution
10
PREVIOUS TRANSACTIONS
Performance
Solutions
Products &
$0.8 B
COLOR
$1.4 B
Acquired (2020)Divested (2019)
11
• Acquisition of Clariant Color business significantly expanded
presence in healthcare, packaging and consumer end markets
• Strength of portfolio – double-digit annual EBITDA growth
since acquisition
• $75 million of realized synergies anticipated in 2022
• Acquisition completed on July 1, 2020 for $1.45 billion.
OPS)
21
Sales Adjusted EBITDA
$818 $823
+ 1%
Adjusted EPS
+ 8% - 3%
(in millions) (in millions)
(+ 9% excluding FX) (+ 18% excluding FX) (+ 5% excluding FX)
Q3 EBITDA BRIDGE
(PRO FORMA TOTAL COMPANY)
22
Price increases more than
offset raw material and
supply chain impacts
$ millions
CAI:
68Price / Mix
(44)Inflation
SEM:
41Price / Mix
(26)Inflation
39Net Price Benefit
(14)Wage and Energy Inflation
6Clariant Color Integration Synergies
14Incentives, Other Employee Costs
(11)FX
$137 Q3 2022
Adjusted
$ 142Q3 2021
(39)Demand
Q3 2022 SEGMENT PERFORMANCE
23
CAI
$587
$566
Sales
$93 $93
SEM Pro Forma
$326 $319
Sales
$70
$62
(+ 4% excluding FX)
- 4% - 2%
(+ 5% excluding FX)
Flat
(+ 7% excluding FX)
- 11%
(- 7% excluding FX)
$500
$585
$2.60
$2.95
FULL YEAR 2022 GUIDANCE
24
Sales Adjusted EBITDA
$3,375
$3,635
Adjusted EPS
(in millions) (in millions)
25
SUMMARY
• Executed the plans we laid out earlier this year
• Completed the Dyneema acquisition and Distribution divestiture
amid challenging market conditions
• Paid down debt and expect to finish the year modestly levered at
3.1x net debt to 2022 pro forma adjusted EBITDA
• Expect $200 million of free cash flow in 2022
• Entering an economic slowdown with a portfolio that is better
positioned than ever before
• Updated our EPS guidance to $2.60 from continuing operations
APPENDIX
Performance
Additives
Pigments
TiO2
Dyestuffs
3%Polyethylene
12%
Nylon
Polypropylene
Other Raw
30%
Styrenic Block
Copolymer
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
27
• From Q2 to Q3, we have seen a 7-10%
sequential decline in certain
hydrocarbon-based raw materials
• Other raw materials such as
performance additives and pigments
have shown moderate inflation
sequentially from Q2 to Q3
Annual Purchases
RAW MATERIAL AND SUPPLY CHAIN UPDATE
Based on 2021 purchases, excludes Avient Protective Materials
SEGMENT DATA
U.S. & Canada
Latin America
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
21%
Building and
END MARKET REVENUE
(1) Total company adjusted EBITDA of $585M includes corporate costs.
https://www.avient.com/sites/default/files/2021-04/avient-sustain-2019-210419-interactive.pdf
Tossiat, France 6.
Pogliano, Italy 6.
Elyria, Ohio 6.
https://www.avient.com/sites/default/files/2020-10/2019-avient-sustainability-report.pdf
Tossiat, France 6.
Pogliano, Italy 6.
Elyria, Ohio 6.
https://www.avient.com/sites/default/files/2024-03/Lawn Equipment Application Solutions_2.pdf
SENSORY EXPERIENCE
Wear Resistance, Noise Reduction,
Low Friction
SOLUTION: Internally Lubricated
Formulations, Thermoplastic
Elastomers, Scratch and Mar
Resistant Additives
POSSIBILITIES: Gears, Gaskets,
Hood Dampers, Seating Systems
STRUCTURAL INTEGRITY
High Stiffness-to-Weight Ratio,
Metal Replacement, Part
Consolidation
SOLUTION: Long Fiber Reinforced
Composites
POSSIBILITIES: Seat Base,
Brake Pedal, Frame, Floor Pan,
Controls
EXTREME PERFORMANCE
Chemical & Fire Resistance,
Extreme Temperature Performance,
Thermal Management, Lightweighting
SOLUTION: Engineered Nylon
Formulations, Flame Retardant
Polyolefin Formulations,
Engineered Polyketone Formulations,
Thermally Conductive Formulations,
Chemical Foaming Agents
POSSIBILITIES: Under-the-Hood
Applications, Electrical Connectors,
Battery Assembly Housings,
Exterior Trim and Equipment
THERMAL MANAGEMENT
Heat Dissipation, Flexible Design
SOLUTION: Thermally Conductive
Formulations
POSSIBILITIES: LED Lights,
Heat Sinks
AESTHETIC APPEAL
Custom Color, Special Effects,
Paint Replacement, Corrosion Resistance,
UV Stability
SOLUTION: Custom Pre-Colored Formulations,
Pre-Colored High-Gloss Thermoplastics,
Solid Color Masterbatches
POSSIBILITIES: Body Panels, Pedals,
Control Grips, Bezels, Brand Elements
TACTILE EXPERIENCE
Soft-Touch Feel, Durable, Wet Grip Performance,
Color Customization, UV Stability, Ergonomic Design, Overmolding
SOLUTION: Thermoplastic Elastomers,
Combination Colorant and Additive Formulations,
Fabric-Effect Colorants and Additives
POSSIBILITIES: Steering Wheel, Switches, Knobs
© 2024, All Rights Reserved
Avient Corporation, 33587 Walker Road, Avon Lake, Ohio USA 44012
https://www.avient.com/products/engineered-polymer-formulations/general-engineered-formulations/lubrione-internally-lubricated-formulations
https://www.avient.com/products/engineered-polymer-formulations/general-engineered-formulations/lubrione-internally-lubricated-formulations
https://www.avient.com/products/polymer-additives/visual-enhancement-effects/cesa-scratch-mar-resistance-additives
https://www.avient.com/products/polymer-additives/visual-enhancement-effects/cesa-scratch-mar-resistance-additives
https://www.avient.com/products/engineered-polymer-formulations/high-temperature-polymer-formulations/complet-long-fiber-reinforced-structural-thermoplastics
https://www.avient.com/products/engineered-polymer-formulations/high-temperature-polymer-formulations/complet-long-fiber-reinforced-structural-thermoplastics
https://www.avient.com/products/engineered-polymer-formulations/general-engineered-formulations/nymax-bergamid-polymer
https://www.avient.com/products/engineered-polymer-formulations/general-engineered-formulations/nymax-bergamid-polymer
https://www.avient.com/products/engineered-polymer-formulations/flame-retardant-formulations/maxxam-fr-flame-retardant-polyolefin-formulations
https://www.avient.com/products/engineered-polymer-formulations/flame-retardant-formulations/maxxam-fr-flame-retardant-polyolefin-formulations
https://www.avient.com/products/engineered-polymer-formulations/general-engineered-formulations/edgetek-pke-polyketone-formulations
https://www.avient.com/products/polymer-additives/foaming-agents/hydrocerol-chemical-foaming-agents
https://www.avient.com/products/engineered-polymer-formulations/general-engineered-formulations/custom-pre-colored-specialty-engineered-formulations
https://www.avient.com/products/engineered-polymer-formulations/general-engineered-formulations/artisan-pre-colored-thermoplastics-premium-finishes
https://www.avient.com/products/polymer-colorants/solid-color-masterbatches
https://www.avient.com/products/polymer-colorants/color-additive-combination-masterbatches/smartbatch-combination-colorants-additives
https://www.avient.com/products/polymer-colorants/color-additive-combination-masterbatches/smartbatch-fabric-fx
https://www.avient.com/sites/default/files/2022-10/Edgetek Toughened PPA Technical Bulletin.pdf
The PPA-based formulations offer decreased
moisture absorption compared to nylon 66
(PA66), helping to improve durability and long-
term performance.
https://www.avient.com/sites/default/files/2023-12/Cesa Light Additives for Injection Molding Product Bulletin.pdf
BENEFITS
• High additive loading for optimal UV
stabilization
• Solutions available for a large number of
injection molded polymers including PP, PE,
PS, HIPS, ABS, SAN, PA (nylon), PBT, Co-PET, PC,
POM and TPU
• Can be combined with colors and other
additives in Smartbatch™ solutions
• Formulations can be customized to meet
specific regulatory compliance, e.g., EU and US
food contact, toy, UL 94 recognition
PRODUCT BULLETIN
Copyright © 2023, Avient Corporation.
https://www.avient.com/sites/default/files/2022-03/CESA Antimicro Product Selector Guide.pdf
POLYMER FAMILY MATERIAL PRODUCT NAME PRODUCT TYPE DOSAGE
Polyolefin PEAN698413 CESA Antimicro SE 99-58 Silver 2–7.5%
Polyolefin PEAN698432 CESA Antimicro J8146 Zinc 1–4%
Polypropylene PPA0698636 CESA Antimicro J8259 Zinc 1–4%
Nylon ABA0820032 CESA Antimicro ABA0820032 Silver 2–7.5%
Polyester NBAN698441 CESA Antimicro S58441 Silver 2–7.5%
Polycarbonate NCAN820009 CESA Antimicro NCAN820009 Silver 2–7.5%
TPU RUA0698433 CESA Antimicro J8843 Zinc 1–4%
Styrenic SLA0820011 CESA Antimicro SLA0820011 Zinc 1–4%