https://www.avient.com/sites/default/files/2022-05/DOC 1879.pdf
Avient Corporation, its subsidiaries and affiliates design, source, manufacture and distribute chemicals and
plastic products globally.
Products are sold to more than 6,000 custom
injection molders and extruders who, in turn, convert them into
plastic parts that are sold to end-users in a wide range of
industries.
Polyone and Clariant
Masterbatch combined in 2020 to form Avient.
https://www.avient.com/sites/default/files/2023-11/AVNT November IR 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;
• 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, any recessionary conditions, and terrorism or hostilities
Use of Non-GAAP Measures
This presentation includes the use of both GAAP (generally accepted accounting principles) and non-GAAP financial measures.
GUIDANCE
$800
$754
$128
$123
Sales Adjusted EBITDA
$0.56 $0.57
13
• Demand impacted by destocking
and cautious customer sentiment
• Positive net price benefit:
o CAI - Pricing flat and raw
material deflation
o SEM - Pricing flat with
unfavorable mix related to
healthcare, more than offset
with raw material deflation
• Cost reductions driven by Clariant
synergies and reduced
administrative costs
Q3 EBITDA BRIDGE
($ millions)
CAI:
Price / Mix -)
Deflation 22)
SEM:
Price / Mix (6)
Deflation 13)
Net Price Benefit 29)
Cost Reductions 13)
Wage Inflation (8)
FX 1)
Q3 2023 Actual $ 123)
Adjusted
EBITDA
Q3 2022 Pro Forma $ 137)
Demand (49)
14
2023 G U I DAN CE
Q4 2023 GUIDANCE VS.
PRIOR YEAR
$790
$710
2022 2023
$107
$112
2022 2023
Sales Adjusted EBITDA
$0.42
$0.47
2022 PF 2023
- 10% + 5% + 12%
Sales Adjusted EBITDA Adjusted EPS
16
$112
$500
$0.47
Q4 AND FULL YEAR 2023 GUIDANCE
$710
$3,130
Sales Adjusted EBITDA Adjusted EPS
17
(in millions) (in millions)
Guidance: Free Cash Flow
$180 $180
Prior Guidance Guidance
FREE CASH FLOW & INCREASED DIVIDEND
13th Consecutive Dividend Increase
0.16
0.26
0.42
0.58
0.79
0.85
0.99
1.03
2011 2013 2015 2017 2019 2021 2023 2024
S U S TAI NABI L I T Y DAY
RE CAP
SUSTAINABILITY AS A GROWTH DRIVERLONG-TERM REVENUE GROWTH DRIVERS
60%+
Key Growth
Drivers
Sustainable
Solutions
Composites, Healthcare,
Asia / LATAM
Overlap
Other
(GDP Growth)
Total Company Revenue
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%
SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH
8-12%
Long Term
Growth
50
90
2022 2030
Medical Plastics
Market Size
(in $Billions)
2020 2030
Recycled
Plastics
Virgin
Plastics
Growing Demand
for Recycled
Content
Avient Sustainable
Solutions
46
2023 2032
Global Offshore Annual
Wind Installations
(in Gigawatts)
Sources: McKinsey, Bloomberg, Grand View Research
SUSTAINABILITY TRENDS DRIVE
LONG-TERM GROWTH
21
• Transformative acquisitions
combined with divestitures of
more cyclical businesses have
improved margins over 400 bps
since 2018
• 20% long-term margin goal to
be driven by key growth drivers,
with sustainable solutions
playing a meaningful role
5.4%
11.5%
2006 2018 2023E Recovery Growth
Drivers
Strategic
Objective
20%+
+1%+
+3%+
ADJUSTED EBITDA MARGIN EXPANSION
22
• 6% annualized long-term sales growth leveraging
sustainable solutions, composites, healthcare, and
emerging regions
• Expand EBITDA margins to 20%
• Deliver annual EBITDA and EPS growth of
10% and 15%
• Maintain asset-light, 80% free cash flow conversion
profile and be valued as a specialty formulator
• Continue fostering our Great Place to Work® culture
CREATING A WORLD-CLASS
SUSTAINABLE ORGANIZATION
23
PEER COMPARISONS
AVIENT IS ASSET LIGHT
Capex / Revenue
2023E (%)
Avient Specialty
Other Specialty /
Note: Avient reflects 2023 estimated revenue of $3,130 and estimated run-rate CAPEX of $110M.
26
3.5
1.8
2.7 3.0 3.4 3.7
2.8
3.7
4.6 5.0
6.9 7.0
8.6
11.1
Av
ie
nt
PP
PM FM
C
N C
FREE CASH FLOW CONVERSION
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/investor-center/news/polyone-corporation-announces-quarterly-dividend-11
Barrier technologies that preserve the shelf-life and quality of food, beverages, medicine and other perishable goods through high-performance materials that require less plastic
Plastic Waste
https://www.avient.com/company/sustainability
We are proud to be a founding member of the Alliance to End Plastic Waste (AEPW).
Avient is committed to eliminating plastic waste through innovation, broad stakeholder engagement, and strong partnerships and alliances.
https://www.avient.com/investor-center/news/polyone-corporation-announces-quarterly-dividend-9
Barrier technologies that preserve the shelf-life and quality of food, beverages, medicine and other perishable goods through high-performance materials that require less plastic
employs approximately 5,600 associates, is certified ACC Responsible Care® and is a founding member of the Alliance to End Plastic Waste.
https://www.avient.com/investor-center/news/avient-announces-quarterly-dividend-0
Barrier technologies that preserve the shelf-life and quality of food, beverages, medicine and other perishable goods through high-performance materials that require less plastic
Plastic Waste
https://www.avient.com/news/archives?page=38
PolyOne Joins UK Plastics Pact to Advance Circular Economy Goals
CLEVELAND – January 27, 2019 – PolyOne Corporation, as part of its continuing sustainability efforts, today announced it has joined The UK Plastic
https://www.avient.com/knowledge-base/article/apparent-hardness-vs-thickness-overmold-applications
Durometer is the international standard for measuring the hardness of rubber, sponge rubber, plastic, and other nonmetallic materials.
Many rubbers, soft plastics, urethanes and TPE’s are rated on the “Shore A” scale.
https://www.avient.com/knowledge-base/article/apparent-hardness-vs-thickness-overmold-applications?rtype[]=1164
Durometer is the international standard for measuring the hardness of rubber, sponge rubber, plastic, and other nonmetallic materials.
Many rubbers, soft plastics, urethanes and TPE’s are rated on the “Shore A” scale.
https://www.avient.com/news/archives?page=50
PolyOne Showcases Performance Plastics for Signs at ISA Sign Expo
MANNHEIM, Germany – At the VDI Plastics in Automotive Engineering congress this week, PolyOne is introducing Smartbatch™ Fabric FX color and