https://www.avient.com/sites/default/files/2023-09/Avient Sustainability Day 2023 - Website %289.19%29.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; • 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.
DISCLAIMER Avient Corporation 3 Avient Corporation 4 Welcome Bob Patterson Chairman, President, and Chief Executive Officer INTRODUCTION Sustainability for a Better Tomorrow Jamie Beggs Senior Vice President and Chief Financial Officer Avient Corporation 5 WE ARE A FORMULATOR CUSTOM FORMULATION Avient Corporation 6 Avient Corporation 7 WE ARE INNOVATORS 2,500+ ACTIVE PATENT FILINGS WORLDWIDE 1,100+ RESEARCH AND DEVELOPMENT ASSOCIATES >85% Stage-gate technology projects enable sustainable solutions INDIA INNOVATION CENTER 33% 2022 VITALITY INDEX 140+ MATERIAL SCIENCE PhD ASSOCIATES Avient Corporation 8 3% 3% 5% Avient Specialty Formulators Other Specialty / Chemical Companies CAPEX / Revenue 2023E Global footprint enables greater flexibility to exceed needs of customers and deliver localized technical and formulation expertise 35 9 36 24 Manufacturing Locations by Region WE ARE ASSET LIGHT Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA Avient Corporation 9 Asset-light flexibility enables more nimble manufacturing capabilities and lower overhead Periods of economic weakness have driven higher levels of cash generation due to working capital improvement PROVEN TRACK RECORD OF HIGH FREE CASH FLOW CONVERSION 78% 78% 80% 80% 81% 78% 84% 83% 80% 79% 50% 55% 60% 65% 70% 75% 80% 85% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E 0 50 100 150 200 250 300 350 400 Fr ee C as h Fl ow C on ve rs io n Fr ee C as h Fl ow FCF $ AVNT FCF Conversion % S&P FCF Conversion % 2 Recent Divestitures - Combined $1.7B in Proceeds PORTFOLIO EVOLUTION Avient Corporation 10 Combined $3.6B Investment in Acquisitions Since 2016 Color Business Distribution 2016 2022 PORTFOLIO TRANSFORMATION 7% 46% 66% 87% 100% 0% 20% 40% 60% 80% 100% 2005 2010 2015 2020 2023 % o f A dj us te d EB IT DA Commodity JVs Distribution Performance Products & Solutions Specialty Businesses Adjusted EBITDA from Specialty Applications Avient Corporation 11 END MARKET TRANSFORMATION Packaging Consumer Healthcare Defense Avient Corporation 12 10% 19% 8% 23% 4% 7% 7% 2006 2023E Other Industri es 78% Healthcare Consumer Packaging 22% 56% 14% 10% 43% 9% 2006 2023E Reduced Exposure to Cyclical End Markets End Market Diversification Transportation Building & Construction 57% 19% Defense IMPROVING PROFITABILITY AND EXPANDING MARGINS Avient Corporation 13 Adj.
EBITDA Margins (1) 5.4% 11.5% 16.0% 2006 2018 2023E • Delivered on organic growth combined with transformative and bolt-on acquisitions • Divested commodity businesses tied to more cyclical end markets • Expanded presence in high growth areas of sustainable solutions, composites, healthcare applications and emerging regions LONG-TERM REVENUE GROWTH DRIVERS Avient Corporation 14 Growth Drivers Long-Term Growth Rate Sustainable Solutions 8–12% Composites 8–10% Healthcare 8–10% Asia / LATAM 5% Other (GDP growth) 0–2% Avient 6% 60%+ Key Growth Drivers Sustainable Solutions Composites, Healthcare, Asia / LATAM Overlap Other (GDP Growth) HISTORICAL GROWTH DRIVER PERFORMANCE Avient Corporation 15 Composites $51 $84 $212 $668 2016 2018 2020 2022 Organic CAGR 10% Healthcare $108 $113 $231 $293 2016 2018 2020 2022 Organic CAGR 11% Asia/Emerging Regions $265 $358 $726 $830 2016 2018 2020 2022 Organic CAGR 12% $340 $455 $790 2016 2018 2020 2022 $1,175 Sustainable Solutions Organic CAGR 11% (Sales $ in millions) Avient Corporation 16 $340M $405M $455M $550M $790M $915M 2016 2017 2018 2019 2020 2021 2022 Revenue From Sustainable Solutions 2016-2022 ($ in millions) 11% Organic CAGR $1,175M Lightweighting Eco-Conscious Recycle Solutions VOC Reduction Sustainable Infrastructure Human Health & Safety Reduced Energy Use Bio-polymers Solutions to increase recycled content and minimize plastic waste Solutions to reduce weight and energy consumption Solutions to preserve and protect natural resources & human life SUSTAINABILITY: FOCUS TODAY Sustainability Strategy Walter Ripple Vice President, Sustainability Avient Corporation 17 OUR SUSTAINABILITY COMMITMENT As the world’s premier provider of specialized and sustainable materials, services, and solutions, Avient is committed to meeting the needs of the present without compromising future generations’ ability to meet their needs.
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Newlin Page 105 Old PolyOne Transformation 60% 80% 100% % o f O p e ra ti n g I n co m e * Mix Shift Highlights Specialty Transformation Ahead of Schedule 2015 Target *Operating Income excludes Corporate Charges ** Pro Forma for the acquisition of ColorMatrix and divestiture of SunBelt 2% 34% 42% 50% 65-75% 0% 20% 40% 2005 2008 2011 2011** 2015 % o f O p e ra ti n g I n co m e * JV's PP&S Distribution Specialty Specialty OI $5M $46M $89M $117M Target Page 106 Why Invest In PolyOne?
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Use of Non-GAAP Measures Page 3 -150.00% -50.00% 50.00% 150.00% 250.00% 350.00% PolyOne S&P 500 Page 4 All time high of $32.32 October 21st, 2013 • 16 consecutive quarters of double digit EPS growth • 42% CAGR adjusted EPS expansion 2006-2012 • YTD stock price has increased 56% versus 22% growth in the S&P • Six fold increase in market cap: $0.5b $3.0b Strategy and Execution Drive Results PP&S 15% Specialty 60% Distribution 25% 0.12 0.27 0.21 0.13 0.68 0.82 1.00 2.50 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 $2.50 2006 2007 2008 2009 2010* 2011* 2012* 2015 Target Ad ju st ed E ar ni ng s P er S ha re Appliance 6% Building & Construction 13% Wire & Cable 9% Electrical & Electronics 4% Consumer 9% Packaging 18% Industrial 10% Misc. 5% HealthCare 9% Transportation 16% Textiles 1% United States 70% Europe 14% Canada 8% Asia 5% Latin America 3% 2012 Revenues: $4.0 Billion* End Markets* 2012 Revenues: $4.0 Billion* EPS Page 5 * Pro Forma includes FY2012 results for Spartech (11/03/12 YE) and Glasforms & excludes discontinued operations PolyOne At A Glance * Restated to exclude discontinued operations Old PolyOne Transformation *Operating Income excludes corporate charges and special items 2% 34% 43% 63% 65- 75% 0% 20% 40% 60% 80% 100% 2005 2008 2010 YTD 2013 2015 % o f O pe ra tin g In co m e* JV's PP&S Distribution Specialty Specialty OI $5M $46M $87M $153M Target Mix Shift Highlights Specialty Transformation 2015 Target Page 6 2006 YTD 2013 2015 Where we were Where we are Organic Consolidated Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 12.8% 12.8% 12 – 16% Global Specialty Engineered Materials 1.1% 10.8% 8.9% 12 – 16% Designed Structures & Solutions — — 5.0% 8 – 10% Performance Products & Solutions 5.5% 8.0% 8.2% 9 – 12% Distribution 2.6% 6.1% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 63% 65 – 75% 3) ROIC* (after-tax) 5.0% 9.4% 15% 4) Adjusted EPS Growth N/A 28% 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 Page 7 *Percentage of Specialty Platform revenue from products introduced in last five years 19.5% 44.0% 2006 Q3 2013 $20.3 $46.6 2006 TTM Q3'13 14.3% 31.0% 2006 Q3 2013 Research & Development Spending Specialty Platform Vitality Index Progression* Innovation Drives Earnings Growth ($ millions) Specialty Platform Gross Margin % Page 8 We are Experts in Polymer Science and Formulation Polymer Science Formulation Chemistry Processing Inputs Base Resins Additives Modifiers Colorants Specialized Polymer Materials, Services, and Solutions Expertise Satisfied Consumers PolyOne Customer Innovative Products & Services Marketplace Demands Performance Requirements Value Drivers Page 9 Positioned for Strong Growth 2015 Target Rev: $5B Adj.
Strong past performance demonstrates that our strategy and execution are working • Megatrends align with our strengths • Innovation and services provide differentiation and competitive advantage • Strong and proven management team driving growth and performance • Addressable market exceeds $40 billion The New PolyOne: A Specialty Growth Company 2015 Target: $2.50 Adjusted EPS Page 14 Schedule I Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with U.S.
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Use of Non GAAP Measures Page 3 -150.00% -100.00% -50.00% 0.00% 50.00% 100.00% 150.00% 200.00% 250.00% 300.00% 350.00% PolyOne S&P 500 Strategy and Execution Drive Results Page 4 • Since 2006, PolyOne stock has expanded approximately 300% vs. a 30% increase in the S&P 500 All time closing high of $26.63 May 28, 2013 The World’s Premier Provider of Specialized Polymer Materials, Services & Solutions Four Pillar Strategy Page 5 2013 Portfolio Transformation Highlights • Substantial organic mix improvement drives 29% increase in first quarter EPS – 14th consecutive quarter of double-digit EPS growth • Completed acquisition of Spartech • Announced the creation of a new Specialty segment – Designed Structures and Solutions • Completed the sale of our non-core resin assets • Realigned our Specialty Coatings business into our GCAI segment Page 6 0.12 0.27 0.21 0.13 0.68 0.82 1.00 2.50 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 $2.50 2006 2007 2008 2009 2010* 2011* 2012* 2015 Target Ad ju st ed E ar ni ng s P er S ha re Appliance 6% Building & Construction 13% Wire & Cable 9% Electrical & Electronics 4% Consumer 9% Packaging 18% Industrial 10% Misc. 5% HealthCare 9% Transportation 16% Textiles 1% PP&S 15% Specialty 60% Distribution 25% United States 70% Europe 14% Canada 8% Asia 5% Latin America 3% 2012 Revenues: $4.0 Billion* End Markets* 2012 Revenues: $4.0 Billion* EPS Page 7 * Pro Forma includes FY2012 results for Spartech (11/03/12 YE) and Glasforms & excludes resin assets PolyOne At A Glance * Restated to exclude discontinued operations Old PolyOne Transformation *Operating Income excludes corporate charges and special items **Pro Forma results include Spartech and Glasforms acquisitions, Specialty Coatings reclass and excludes resin assets 2% 34% 43% 45% 60% 65 – 75% 0% 20% 40% 60% 80% 100% 2005 2008 2010 2012 2012PF** 2015 % o f O pe ra tin g In co m e* JV's PP&S Distribution Specialty Specialty OI $5M $46M $87M $114M $150M Target Mix Shift Highlights Specialty Transformation 2015 Target Page 8 2007 Q1 2013 2015 Target 1) Operating Income % Specialty: Global Color, Additives & Inks 4.6% 11.7% 12 – 16% Global Specialty Engineered Materials 1.3% 10.1% 12 – 16% Designed Structures & Solutions -- 4.6% 8 – 10% Performance Products & Solutions 6.1% 8.1% 9 – 12% Distribution 3.0% 6.0% 6 – 7.5% 2) Specialty Platform % of Operating Income 20% 60% 65 – 75% 3) ROIC* (after-tax) 7% 9.2% 15% 4) Adjusted EPS Growth N/A 29% 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 Page 9 *Percentage of Specialty Platform revenue from products introduced in last five years 19.5% 50.0% 2006 Q1 2013 $20.3 $41.9 2006 2012 14.3% 27.8% 2006 Q1 2013 Research & Development Spending Specialty Platform Vitality Index Progression* Innovation Drives Earnings Growth ($ millions) Specialty Platform Gross Margin % Page 10 Positioned for Strong Growth 2015 Target Rev: $5B Adj.
EPS: $1.00 First Quarter Financial Highlights • 14th consecutive quarter of double digit adjusted earnings per share growth • 29 percent increase in adjusted EPS 34 percent increase in Specialty operating income Growth from all regions Virtually all organic growth • Strengthened our financial position Page 12 • Total Debt at 3/31/13 Less: Cash Net Debt • Available Liquidity Cash ABL Availability Total Liquidity • Net Debt / EBITDA = 2.7x* $169 285 $454 $1,056 169 $887 $50 $360 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Debt Maturities As of March 31, 2013 ($ millions) Page 13 Coupon Rates: 7.500% 7.375% 5.250% *Pro Forma TTM with no synergies related to Spartech acquisition & excludes resin assets Debt Maturities & Liquidity Summary – 3/31/13 Cash Balance = $169M Net Debt / EBITDA* = 2.7x • Repurchased 840k shares in Q1 2013 • 19.1 million shares are available for repurchase under the current authorization Share Repurchase • Introduced a quarterly dividend in Q1 2011 and increased in Q1 2012 (25%) and Q1 2013 (20%) • Objective of maintaining and growing Dividends • Expanding our sales, marketing, and technical capabilities is top priority • Investing in operational and LSS initiatives (including synergy capture) • CAPEX Organic Growth • Targets that expand our: • Specialty offering • End market presence • Geographic footprint • Synergy opportunities • Adjacent material solutions Acquisitions *TTM with no synergies related to the Spartech acquisition Use of Cash Page 14 Why Invest In PolyOne?
Platform operating income mix percentage 2005Y* 2006Y* 2007Y* 2008Y* 2009Y* 2010Y* 2011Y* Global Specialty Engineered Materials $ 0.4 $ 3.9 $ 4.9 $ 17.6 $ 20.6 $ 49.7 $ 45.9 Global Color, Additives and Inks 4.3 8.9 25.7 28.1 25.2 37.7 43.4 Specialty Platform $ 4.7 $ 12.8 $ 30.6 $ 45.7 $ 45.8 $ 87.4 $ 89.3 Performance Products and Solutions 75.7 64.2 65.8 31.3 33.1 54.0 62.4 Distribution 19.5 19.2 22.1 28.1 24.8 42.0 56.0 SunBelt Joint Venture 91.9 102.9 34.8 28.6 25.5 18.9 5.0 Corporate (51.5) 34.5 (73.3) (425.1) 7.9 (27.7) 20.3 Operating income (loss) GAAP $ 140.3 $ 233.6 $ 80.0 $ (291.4) $ 137.1 $ 174.6 $ 233.0 Less: Corporate operating expense (income) 51.5 (34.5) 73.3 425.1 (7.9) 27.7 (20.3) Operating income excluding Corporate $ 191.8 $ 199.1 $ 153.3 $ 133.7 $ 129.2 $ 202.3 $ 212.7 Specialty platform operating mix percentage 2% 6% 20% 34% 35% 43% 42% Platform operating income mix percentage 2012Y* 2012PF** Global Specialty Engineered Materials $ 47.0 $ 47.7 Global Color, Additives and Inks 66.8 81.6 Designed Structures & Solutions -- 20.9 Specialty Platform $ 113.8 $ 150.2 Performance Products and Solutions 74.9 37.4 Distribution 66.0 66.0 Corporate (87.6) ( 87.9) )Operating income GAAP $ 167.1 $ 165.7 Less: Corporate operating expense 87.6 87.9 Operating income excluding Corporate $ 254.7 $ 253.6 45% 60% * Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment. ** Pro Forma results include Spartech and Glasforms acquisitions, Specialty Coatings reclass and excludes the Resin business assets.
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Cable jacket/sheath– Made of PE or PVC 9 Fiber-Line Product PolyOne Materials F I B E R O P T I C A L G R O W T H D R I V E R S PolyOne Corporation 20 5G Networks Enable lower latency, greater flexibility & efficiency Installation of these networks are in the very early stages Installation will start in urban hubs and will continue to expand into suburban and rural areas By 2025, only 14% of the world will have 5G connections Growth is expected over multi- year period 5G technology will be a leading growth driver in fiber optic cable for several years 10x Speed Increase & 8x More Antennae Required 5G vs. 4G PolyOne Corporation 21 Safety Technology Geography Service FinancialPeople Low EH&S risk profile New and complementary technologies Leverage our global footprint Strong customer relationships Foundational operating margins of 8-10% with ability to double Motivated team with a specialty culture I N V E S T - T O - G R O W M & A S T R A T E G Y PolyOne Corporation 22 Capture sourcing synergies Cross-sell & blend technology 8-10% operating margins I N V E S T - T O - G R O W M & A P L A Y B O O K Protect customers Retain employees Implement LSS to drive efficiency improvements Innovate with combined portfolio Safety First!
T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y Growing leadership position in attractive markets Innovation, technology and service are differentiators Capital management is a strength: Record-setting cash generation to continue for years Expand ROIC while increasing invested capital Proven acquisition strategy with robust pipeline Commercial investments are fueling momentum and generating organic growth SERVICE: T H E T I M E L E S S D I F F E R E N T I A T O R PolyOne Corporation 28 T A L E N T D E V E L O P M E N T PolyOne Corporation 29 Leadership Program Participants 2012 2013 2014 2015 47 0 86 2016 2019 125 169 412 Campus Hires 2008 2011 2014 2017 0 25 90 47 PolyOne LSS Blackbelts 2008 2011 2014 2019 0 67 247 147 2018 141 A U N I Q U E C U S T O M E R E X P E R I E N C E Industrial Design IQ DESIGN LABS PolyOne Corporation 30 Material & Color Expertise Manufacturing Expertise 3 14 2014 2018 Industrial designers $0 $10M 2014 2018 $4M $80M 2014 2018 Opportunity funnel New business revenue LSS CUSTOMER FIRST PolyOne Corporation 31 Customer Projects Enables sales growth by building more intimate customer relationships, giving us insight to customers’ needs, with a service that is not easily replicated 2014 2018 2 104 3 D P R I N T I N G B R I N G I N G N E W I D E A S T O L I F E PolyOne Corporation 32 Enables validation of fit and function Shortens design cycle and time to market Avoids tooling rework Drives innovation Delivers substantial customer value PolyOne Corporation 33 From concept to production M O N T H M O N T H M O N T H M O N T H M O N T H M O N T H 99.9% Reduction in turnaround time Traditional Timeline up to 24 weeks PolyOne ColorMatrix Select™ 6 hours Innovative system for processors and OEMs to develop colors in real time Complete system that provides customers with the freedom to match, prototype and produce color entirely within their own facility C O L O R M A T R I X S E L E C T ™ “Being able to create color and produce parts in 1 day is unheard of in this industry” -CEO, Industry Leader I N N O V A T I N G W I T H P O L Y O N E PolyOne Corporation 34 SEGMENT HIGHLIGHTS C O L O R , A D D I T I V E S & I N K S E N D M A R K E T S & S O L U T I O N S PolyOne Corporation 35 Solid Colorants Performance Additives Screen Printing Inks Liquid Colorants Packaging 28% Industrial 14% Textiles 13% Wire & Cable 11% Building & Construction 10% Transportation 8% Consumer 8% Healthcare 5% Appliances 2% Electrical & Electronic 1% Operating Income & MarginRevenue by Region C O L O R , A D D I T I V E S & I N K S 2 0 1 8 R E V E N U E | O V E R $ 1 B I L L I O N $4 $25 $104 $159 0.9% 5.5% 12.2% 15.1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 2005 2009 2013 2018 PolyOne Corporation 36 Europe 35% United States 45% Asia 14% Canada 1% Mexico 3% South America 2% S P E C I A L T Y E N G I N E E R E D M A T E R I A L S E N D M A R K E T S & S O L U T I O N S * PolyOne Corporation 37 Engineered Formulations Advanced Composites Thermoplastic Elastomers Consumer 22% Transportation 16% Wire & Cable 15% Healthcare 11% Industrial 9% Packaging 7% Appliance 3% Building & Construction 4% Electrical & Electronics 16% *Pro Forma including Fiber-Line S P E C I A L T Y E N G I N E E R E D M A T E R I A L S Revenue by Region Operating Income & Margin P R O F O R M A 2 0 1 8 R E V E N U E | $ 7 5 0 M I L L I O N * PolyOne Corporation 38 $21 $57 $72 0.1% 5.1% 9.3% 11.2% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 20 30 40 50 60 70 80 90 2005 2009 2013 2018 Europe 28% United States 46% Asia 24% Canada 2% *Pro Forma including Fiber-Line D I S T R I B U T I O N E N D M A R K E T S & S U P P L I E R S PolyOne Corporation 39 Healthcare 27% Transportation 22% Industrial 18% Consumer 12% Appliance 6% Electrical & Electronics 5% Building & Construction 5% Packaging 3% Wire & Cable 2% $20 $25 $63 $71 2.9% 4.0% 5.9% 5.6% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 15 25 35 45 55 65 75 2005 2009 2013 2018 Operating Income & Margin2018 Revenue | $1.3 Billion http://www.polyone.com/Pages/VariationRoot.aspx O V E R V I E W O F R A W M A T E R I A L P U R C H A S E S PolyOne Corporation 40 Performance Additives 13% Polyethylene 11% Pigments 9% TiO2 8% Styrenic Block Copolymer 7% Nylon 8% Polypropylene 5% Plasticizers 4% Dyestuffs 3% Other Raw Materials 32% $900 million of raw material purchases estimated in 2019 excluding Distribution business Note: All figures exclude PolyOne Distribution business and divested PP&S business T A R G E T E N D M A R K E T S & A P P L I C A T I O N E X A M P L E S PolyOne Corporation 41 Thermally Conductive Technologies Chemical Resistant Technologies Polymer Colorants Elastomeric Grips and Handles Structural Composites Antimicrobial Technologies Anti-Counterfeiting Technologies Target End Markets… Healthcare Catheter Technologies Under-hood Components Target End Markets… Automotive Interior Structural Components Sound & Vibration Management Roof Systems Air Management Electronics and Cameras Lighting Exterior / Interior Trim Braces & Brackets Fasteners Seals & Flaps Target End Markets… Consumer Thermally Conductive Components Polymer Colorants Elastomeric Grips and Handles Structural Composite Components Oxygen Scavenger Technologies Laser Marking Additives Antistatic Technologies UV Light Barrier Technologies Cap & Closure Colorants Process Optimization Technologies Antioxidant Technologies Density Modified Technologies Target End Markets… Packaging Impart weight, sound and metallic finish to caps and closures for cosmetics and spirits applications Elevate quality and prestige perceptions among high-end consumers Eliminate time and cost associated with secondary operations and assembly Luxury Packaging GravitechTM Density Modified Polymers Eliminate costs by increasing pigment density Enhance color performance without altering form and formulation Increase design capabilities by reducing weight and layer thickness Optimize Color Usage OnColorTM Super Concentrates Inhibit microbial growth on polymer surfaces Enhance value or products and devices Highly versatile concentrate with the ability to be incorporated into a wide variety of products Combat Bacteria Formation WithStandTM Antimicrobial Technology Durable, long-lasting products stand up to the most aggressive disinfectants Minimize environmental stress cracking and discoloration One of the broadest medically approved polymer and colorant portfolios Medical Device Housings Chemically Resistant Engineered Polymers Color & Design Services Greater control of color development and supply chain Work across entire design process from concept to commercialization Inspire creativity in the use of polymer materials, colors, and effects Innovative brand differentiation Faster development timelines Outdoor Applications Leading provider of high performance specialty materials for the recreational and sports & leisure industry Well positioned across all segments to address market needs Metal to Polymer Conversion Lightweighting Thermal Management Impact Performance ColorMatrix Fiber Colorant Solutions Proprietary advanced liquid color formulations and equipment enable greater efficiency and productivity Eliminates aqueous dyeing and its associated wastewater treatment Solid Color Concentrates Extrusion-spun fibers colored via solid masterbatch Fiber Colorants Robert W.
Service:�The Timeless differentiator Talent development IQ DESIGN LABS LSS CUSTOMER FIRST 3D Printing�Bringing New ideas to life Slide Number 33 Innovating with PolyOne COLOR, ADDITIVES & INKS Color, Additives & Inks Specialty Engineered Materials Specialty Engineered Materials DISTRIBUTION Overview of RAW MATERIAL PURCHASES Target end markets & �application examples Slide Number 42 Slide Number 43 Slide Number 44 Slide Number 45 Slide Number 46 Slide Number 47 Slide Number 48 Slide Number 49 Slide Number 50 Slide Number 51 Slide Number 52
https://www.avient.com/sites/default/files/2019-12/Fermium_IR_Deck_12.16.19_for_Website.pdf
V I S I O N PolyOne Corporation 4 To be the world’s premier provider of specialized polymer materials, services and solutions C O R E V A L U E S P E R S O N A L V A L U E S Honesty IntegrityRespect Operational Excellence Commercial Excellence Specialization Globalization Collaboration ExcellenceInnovation To be the world’s premier provider of specialized polymer materials, services and solutions S A F E T Y F I R S T PolyOne Corporation 5 Injuries per 100 Workers Spartech Acquisition 1.3 1.1 1.1 0.85 0.65 0.57 0.54 0.97 0.84 0.74 0.74 0.69 0.51 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 PolyOne Corporation 6 P O L Y O N E P R O F O R M A 2 0 1 8 R E V E N U E | $ 2 . 9 B I L L I O N * Segment End Market Geography Transportation 15% Healthcare 15% Industrial 14% Packaging 13% Consumer 12% Wire & Cable 11% Building & Construction 6% Electrical & Electronics 6% Textiles 5% Appliance 3% Color Additives & Inks 34% Distribution 41% Specialty Engineered Materials 25% United States 54% Europe 20% Asia 11% Latin America 10% Canada 5% *Pro Forma excluding PP&S and including Fiber-Line P R O O F O F P E RFO RMAN CE C O N S E C U T I V E Y E A R S 10 A D J U S T E D E P S E X P A N S I O N $1.51 $1.61 PolyOne Corporation 7 S U S T A I N A B L E P A T H T O D O U B L E - D I G I T E P S G R O W T H PolyOne Corporation 8 P E O P L E P R O D U C T S P L A N E T P E R F O R M A N C E Double digit annual EPS growth Expand specialty portfolio with strategic acquisitions Innovate and develop new technologies and services Repurchase 600K-1M shares annually Increase commercial resources 5-7% annually Double acquired company margins Enhance efficiencies through Lean Six Sigma and commercial excellence 531 710130 164 504 663 2014 2018 R&D / Technical Marketing Sales PolyOne Corporation 9 Increased commercial headcount + 34% + 26% + 32% I N V E S T M E N T I N COMMERCIAL RESOURCES D R I V I N G G R O W T H Sustained revenue increases led by organic business $2.9 $2.9 $3.2 $3.5 2015 2016 2017 2018 Total + 9% Organic + 5% Revenue in billions of $ Total + 10% Organic + 7% Lead Specialists T H E E V O L V I N G C U S T O M E R R E L A T I O N S H I P PolyOne Corporation 10 Expanded Path Traditional Path Strategic Accounts/ Field Sales Business Development Customer Service Web and Social Media Inside Sales PolyOne Corporation 11 Investments in digital and dedicated inside sales to improve customer experience 110% increase in leads (from 6,000 to 12,700) driven by website, phone, and online chat EXPANDED PATH A D D I N G C U S T O M E R T O U C H P O I N T S 4 24 2014 2018 Inside sellers $11M $109M 2014 2018 Inside sales/digital revenue A L I G N I N G W I T H T R E N D S F O R G R O W T H T R A N S P O R T A T I O N P A C K A G I N G H E A L T H C A R E C O N S U M E R PolyOne Corporation 12 Facilitate alternative energy solutions Light- weighting Reduce packaging materials Improve recyclability Reduce spread of infection I N N O V A T I O N PolyOne Corporation 13 Customization 55% M&A 30% Innovation Pipeline 15% Innovation comes from Research & Development Spend ($ millions) Vitality Index % of sales from products launched last 5 years 12% 35% 2006 2018 $20 $56 2006 2018 Transformational Opportunity for Growth Through M&A Adjacent Opportunity for Growth Through New Product Pipeline Core Customization 3 H O R I Z O N S O F D E V E L O P M E N T PolyOne Corporation 14 Incremental development from existing base of technology New development adjacent to current technology New technology development outside of and with our current base Service adjacent markets and customers Create new markets, target new customer needs Service existing markets and customers Market Technical I N N O V A T I O N Non-Halogen Flame Retardants Barrier Technologies Fiber Colorants Advanced Composites Thermoplastic Elastomers Gordon Composites/ Polystrand – Composites GLS – Thermoplastic Elastomers ColorMatrix – Liquid Color & Additives PlastiComp Fiber-Line I N N O V A T I O N S P O T L I G H T : C O M P O S I T E S PolyOne Corporation 15 C O M P O S I T E S R E F R E S H E R PolyOne Corporation 16 Fiber Polymer Composite Strength Design Flexibility Continuous Fiber Thermoset Composites Short Glass Fiber Thermoplastics Continuous Fiber Thermoplastic Composites Long Glass Fiber Thermoplastics S T R A T E G I C I N V E S T M E N T H I S T O R Y Acquired Polystrand Installed LFT production Avon Lake Acquired Gordon Composites Thermoplastic Composites Long Fiber Reinforced Thermoplastics Continuous Fiber Thermosets Long Fiber Thermoplastic (LFT) Technology Installed LFT production Barbastro, Spain Acquired Glasforms Long Fiber Reinforced Thermoplastics Continuous Fiber Thermosets 2012 2015 20162009 2011 Acquired PlastiComp, specialty LFT producer 2018 PolyOne Corporation 2019 Acquired Fiber-Line, specialty fiber processor 17 C O M P O S I T E S I N T R A N S P O R T A T I O N PolyOne Corporation 18 W A T E R C R A F TR A I L H E A V Y T R U C K Bulkheads and Transoms Ceilings and Hatches Doors and Cabinetry Flooring Door Panels Side Walls Flooring & Side Panels Aerodynamic Fairings Seat and Bunk Reinforcements P O L Y O N E A P P L I C A T I O N S I N F I B E R O P T I C C A B L E S PolyOne Corporation 19 1.
Cable jacket/sheath– Made of PE 9 Fiber-Line Product PolyOne Materials F I B E R O P T I C A L G R O W T H D R I V E R S PolyOne Corporation 20 5G Networks Enable lower latency, greater flexibility & efficiency Installation of these networks are in the very early stages Installation will start in urban hubs and will continue to expand into suburban and rural areas By 2025, only 14% of the world will have 5G connections Growth is expected over multi- year period 5G technology will be a leading growth driver in fiber optic cable for several years 10x Speed Increase & 8x More Antennae Required 5G vs. 4G PolyOne Corporation 21 Safety Technology Geography Service FinancialPeople Low EH&S risk profile New and complementary technologies Leverage our global footprint Strong customer relationships Foundational operating margins of 8-10% with ability to double Motivated team with a specialty culture I N V E S T - T O - G R O W M & A S T R A T E G Y PolyOne Corporation 22 Capture sourcing synergies Cross-sell & blend technology 8-10% operating margins I N V E S T - T O - G R O W M & A P L A Y B O O K Protect customers Retain employees Implement LSS to drive efficiency improvements Innovate with combined portfolio Safety First!
Service:�The Timeless differentiator Talent development IQ DESIGN LABS LSS CUSTOMER FIRST 3D Printing�Bringing New ideas to life Slide Number 33 Innovating with PolyOne COLOR, ADDITIVES & INKS Color, Additives & Inks Specialty Engineered Materials Specialty Engineered Materials DISTRIBUTION Overview of RAW MATERIAL PURCHASES Target end markets & �application examples Slide Number 42 Slide Number 43 Slide Number 44 Slide Number 45 Slide Number 46 Slide Number 47 Slide Number 48 Slide Number 49 Slide Number 50 Slide Number 51 Slide Number 52
https://www.avient.com/sites/default/files/2020-09/sustainabilityreport2018.pdf
Gaggenau, Germany 14.
Lehigh, Pennsylvania 42.
Lehigh, Pennsylvania 42.
https://www.avient.com/sites/default/files/2023-03/AVNT Q2 2022 Earnings Presentation - Website Version.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 any limitation, any supply chain and logistics issues; • Changes in polymer consumption growth rates and 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 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; • Any material adverse changes in the equity and assets of Koninklijke DSM N.V.’s protective materials business (“the Dyneema Business”); • Our ability to achieve the strategic and other objectives relating to the acquisition of the Dyneema Business and the possible sale of the Distribution business segment; and • Other factors described in our Annual Report on Form 10-K for the year ended December 31, 2021 and our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022 under Item 1A, “Risk Factors.”
S EC O N D Q UART ER 2022 RE S U LTS $122 $134 2021 2022 $0.87 $0.98 2021 2022 Q2 2022 PERFORMANCE (TOTAL COMPANY) 4 Sales Adjusted Operating Income $1,235 $1,302 2021 2022 + 5% Adjusted EPS + 10% + 13% (in millions) (in millions) (+ 10% excluding FX) (+ 16% excluding FX) (+ 20% excluding FX) Q2 2022 SEGMENT PERFORMANCE 5 CAI $624 $649 Sales ($ in millions) SEM Distribution $86 $94 Operating Income + 4% + 9% $404 $443 Sales $24 $27 Operating Income + 10% + 13% (1) $241 $244 Sales $37 $37 Operating Income + 1% Flat (+ 10% excluding FX) (+ 16% excluding FX) (+ 6% excluding FX) (+ 3% excluding FX) Q2 2021 $1,235 $122 Sustainable Solutions 17 7% 7 Healthcare 23 14% 5 Composites (ex Outdoor High Performance) 10 20% 4 Growth in Asia / LATAM 5 3% 1 Other 69 11% 5 Sub-total $1,359 10% $144 Outdoor High Performance Impact (9) (5) Wage Inflation and Overtime (7) Other Supply Chain Costs (2) Clariant Color Integration Synergies 7 Incentives, Other Employee Costs 4 FX (48) (7) Q2 2022 $1,302 5% $134 Q2 2022 SALES AND OPERATING INCOME (TOTAL COMPANY) 6 Sales Growth Rate Adjusted Operating Income$ millions Adjusted EBITDA Q2 EBITDA BRIDGE 7 Price increases more than offsets raw material and supply chain impacts Q2 2021 $ 159 Demand (29) $ millions CAI: Price / Mix 87 Inflation (58) SEM: Price / Mix 36 Inflation (24) Distribution: Price / Mix 45 Inflation (41) Net Price Benefit 45 Wage Inflation and Overtime (7) Other Supply Chain Costs (2) Clariant Color Integration Synergies 7 Incentives, Other Employee Costs 4 FX (7) Q2 2022 $ 170 China Lockdowns / Russia Impact $ (14) Outdoor High Performance (5) Transportation (5) 8 Q2 '21 Adjusted EPS 0.87$ Color, Additives and Inks 0.11 Specialty Engineered Materials 0.01 Distribution 0.03 Corporate Costs 0.01 F/X (0.05) Segment OI 0.11$ Interest Expense 0.03 Tax Rate (0.03) Q2 '22 Adjusted EPS 0.98$ Q2 EPS BRIDGE Key Updates • Provided progress on 2030 Sustainability Goals • Emphasized commitment to U.N.
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 9 ESG PERFORMANCE & AWARDS 10 84th ENVIRONMENTAL SOCIAL GOVERNANCE 2 1 3 (as of 6/30/22) 2022 O U TLO O K $429 $490 2021 2022E $3.05 $3.50 2021 2022E FY 2022 GUIDANCE (TOTAL COMPANY: CURRENT PORTFOLIO) 12 Sales Adjusted Operating Income $4,819 $5,100 2021 2022E + 6% Adjusted EPS + 14% + 15% (in millions) (in millions) (+ 9% excluding FX) (+ 18% excluding FX) (+ 20% excluding FX) 13 CASH FLOW / LEVERAGE ($ millions) 2022E Cash Flow from Operating Activities 400$ Less: Run-Rate CapEx (90) CapEx for Clariant Integration (10) CapEx for IT System Upgrade (15) Total CapEx (115) Free Cash Flow 285$ Adjusted EBITDA 635$ Net Debt / Adjusted EBITDA 1.6x 14 DYNEEMA / DISTRIBUTION UPDATES • Strong performance so far in 2022 in-line with our modeling • Acquisition to be finalized as early as September 1, pending standard regulatory process and closing conditions • Encouraging interest thus far from potential buyers for world-class business with a strong track record • Second round bids due in August DISTRIBUTION 15 PRO FORMA MODELING UPDATE 2022E ($M) Revenue 5,100$ 415$ 5,515$ (1,635)$ 3,880$ Adjusted EBITDA 635 130 765 (109) 656 EBITDA % 12% 31% 14% 7% 17% Adj.
https://www.avient.com/sites/default/files/2022-03/Asia SEM Healthcare Product Selection Guide %281%29.pdf
PP OVERMOLDING HARDNESS REGULATORY STERILIZATION CHARACTERISTICS Dynaflex™ G2706 28A USP Class VI, ISO 10993, Food contact EtO Soft translucent grade, grippy feel Dynaflex™ G2711 43A USP Class VI, ISO 10993, Food contact EtO Highly colorable solution, grippy feel, low compression set Versaflex™ CL2242 & CL2250 42A/ 50A USP Class VI, ISO 10993, US Food contact EtO Clear boilable grades; ABS, PC bondable Versaflex™ G2705 N 60A USP Class VI, ISO 10993, Food contact EtO/Steam High resilience, low compression set Versaflex™ HC3810 20A-90A USP Class VI, ISO 10993 EtO General purpose, unfilled ABS, PC OVERMOLDING HARDNESS REGULATORY STERILIZATION CHARACTERISTICS Versaflex™ OM1040 40A USP Class VI, ISO 10993 EtO Translucent Versaflex™ OM3060 60A USP Class VI, ISO 10993 EtO Clear VERSAFLEX™ CL AND DYNAFLEX™ TPEs OVERMOLDING FOR ERGONOMICS • Adds good tactile surface with soft-touch feel • Available in a variety of color effects and textures • Improves grip, cushion, and comfort • Enhances functional performance like sealing properties, vibration damping, oxygen barrier, and scratch and abrasion resistance • Reduces assembly costs, good processability • Offers excellent adhesion to a wide range of substrates Applications: • Glucometers • Medical tools overmolds • Injector pens • Analysis devices VERSALLOY™ HC & VERSAFLEX™ HC TPEs SEALING & RESEALING • Rubbery feel and soft touch • No coring, good puncture, and resealability in static stoppers • Meets low coefficient of friction requirements in dynamic seals • Low extractables • Suitable to overmold onto polyolefins Applications: • Sealing and resealing septum • Seals and sanitary gaskets • Syringe plungers and tips MATERIAL DESCRIPTION HARDNESS REGULATORY STERILIZATION CHARACTERISTICS Versalloy™ HC 9210-45N 45A USP Class VI EtO Good processability, smooth surface aesthetics Versalloy™ HC 9210-55N 55A USP Class VI EtO Good processability, smooth surface aesthetics Versalloy™ HC 9210-70N 70A USP Class VI EtO Good processability, smooth surface aesthetics Versalloy™ HC 9220-43N 43A USP Class VI, ISO 10993-4/5 EtO Extrusion grade, high temperature resistance Versaflex™ HC 2110-35N 34A FDA, USP Class VI, ISO 10993 Autoclave EtO radiation Resealing, elevated comp set Versaflex™ HC 2110-57B 57A FDA, USP Class VI, ISO 10993 Autoclave EtO radiation Low stiction VERSAFLEX™ CL AND DYNAFLEX™ TPEs HIGH CLARITY GRADES WITHOUT PLASTICIZERS • Water clear grades formulated without phthalate plasticizers • Meets medical regulatory USP Class VI and ISO 10993-4,5 • Food contact and FDA compliant • Autoclave and radiation stable • Low extractable • High clarity (Haze 50 4.1, 100 4.5, 100 4, 70 6, 70 Tensile Modulus (MPa) 2200 2700 2600 2350 1820 1820 Flexural Strength (MPa) 80 90 104 86 68 68 Flexural Modulus (MPa) 2500 2700 2500 2300 1980 1590 HDT: 0.45, 1.8 (MPa) 110, 80 90, 80 100, 89 123, 100 123, 64 100, 70 UL-94 Rating @ 3.0 mm 5VA V-0 5VA V-0 HB V-0 UL-94 Rating @ 1.5 mm V-0 V-0 5VB V-0 HB V-0 UL-94 Rating @ 0.75 mm V-1 V-2 V-0 None None V-2 COMPETITIVE MATERIAL COMPARISON ENGINEERED POLYMER FORMULATIONS FOR HEALTHCARE TRILLIANT™ HC THERMOPLASTICS The family of Trilliant™ HC high-performance thermoplastics is formulated to meet the growing challenges of medical devices and equipment.
ST5200-8030 ESD BK001 1 5 27 52 1980 42 E3 ST5200-8035 ESD BK001 1 20 22 37 1460 150 E3 +86.21.60284888 www.avient.com Copyright © 2021, Avient Corporation.
https://www.avient.com/sites/default/files/2023-07/AVNT Q2 2023 Earnings Presentation%5B70%5D.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; • 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.
Q 1 2 0 2 3 -8% +6% -1% Flat 10 US & Canada Latin America EMEA Asia Total Avient -2.6% 2023 G U IDA N CE $128 $525 Q3 FY $0.56 $2.40 Q3 FY 2023 GUIDANCE 12 $800 $3,280 Q3 FY Sales Adjusted EBITDA Adjusted EPS (in millions) (in millions) 13 • Focused on working capital management, restructuring actions to streamline operations • IT investment to further integrate acquired businesses and capture operational efficiencies • Preserve Free Cash Flow to maintain net leverage CASH FLOW / LEVERAGE ($ millions) 2023E Cash Flow from Operating Activities 320$ Less: CapEx (140) Free Cash Flow 180$ Adjusted EBITDA 525$ Net Debt / Adjusted EBITDA 3.0x SUSTAINABILITY AS A GROWTH DRIVER 14 LONG-TERM REVENUE GROWTH DRIVERS Revenue From Sustainable Solutions* 2016-2022 $340M $405M $455M $550M $790M $915M 2016 2017 2018 2019 2020PF** 2021 2022PF*** $1,175M *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 60%+ Key Growth Drivers Sustainable Solutions Composites, Healthcare, Asia / LATAM Overlap Other (GDP Growth) Total Company Revenue SUSTAINABILITY REPORT 2022 • Provides progress on 2030 goals • Reaffirms commitment to U.N.
Avient 2011 and 2018 valuations reflect trailing 12 months EBITDA at December 31 of the respective years. 24 EV / 2023E EBITDA Historic Multiple 6.5 8.3 10.3 14.4 13.6 13.6 12.4 9.0 20.2 18.2 11.5 10.6 9.7 9.6 8.7 8.3 A vi en t (2 01 1) A vi en t (2 01 8) A vi en t (2 02 3) R P M P P G K W R A V Y F U L E C L H X L F M C A S H S C L C E H U N E M N Avient Specialty Formulators Other Specialty / Chemical Companies SEGMENT DATA U.S. & Canada 40% EMEA 37% Asia 18% Latin America 5% 2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 20% Packaging 24% Industrial 15% Building and Construction 10% Telecommunications 4% Energy 4% Defense 6% END MARKET REVENUE $2,355M $402M $1,300M $272M Sales EBITDA Specialty Engineered Materials Color Additives and Inks $592M$3,653M (1) Transportation 9% Healthcare 8% 26 (1) Total company sales and adjusted EBITDA of $3,653M and $592M, respectively, include intercompany sales eliminations and corporate costs 2022 REVENUE | $2 .4 B ILL ION US & Canada 34% EMEA 38% Asia 20% Latin America 8% END MARKET REGION 27 Packaging 34% Consumer 21% Healthcare 8% Industrial 15% Transportation 8% Building & Construction 11% Telecommunications 1% Energy 2% COLOR, ADDITIVES & INKS 2022 PRO FORMA REVENUE | $1 .3 B ILL ION US & Canada 52% EMEA 35% Asia 13% 28 Packaging 5% Consumer 19% Healthcare 8%Industrial 16% Transportation 10% Telecommunications 10% Energy 9% Defense 15% Building & Construction 8% END MARKET REGION SPECIALTY ENGINEERED MATERIALS Packaging 32% Consumer 27% Healthcare 8% Industrial 14% Building & Construction 5% Telecommunications 3% Energy 1% Defense 1% Asia (18% of sales) Transportation 9% 2022 PROFORMA AVIENT REGIONAL SALES Packaging 27% Consumer 14% Healthcare 5% Industrial 17% Building & Construction 10% Energy 5% Defense 8% EMEA (37% of sales)Transportation 11% Packaging 13% Consumer 24% Healthcare 12% Industrial 15% Building & Construction 13% Energy 5% Defense 5% US & Canada (40% of sales) Transportation 7% Packaging 56% Consumer 23% Healthcare 4% Industrial 7% Building & Construction 4% Telecommunications 1% LATAM (5% of sales) Transportation 5% Telecommunications 3% Telecommunications 6% 29 BY END MARKET Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special items, to assess performance and facilitate comparability of results.