https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Earnings Presentation_For_Website_w_non-GAAP_5_6_1.pdf
Avient corporation first quarter 2024 results and 2024 financial guidance AVIENT CORPORATION F I R S T Q U A R T E R 2 0 2 4 R E S U L T S A N D 2 0 2 4 F I N A N C I A L G U I D A N C E (NYSE: AVNT) M AY 7 , 2 0 2 4 DISCLAIMER Forward-Looking Statements Certain statements contained in or incorporated by reference into this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
For the same reasons, Avient is unable to address the probable significance of the unavailable information. 2 O P E N I N G RE MARK S 4 REGIONAL DEMAND TRENDS-TOTAL COMPANY Q 1 S A L E S V S P Y ( E X C L U D I N G F X ) 4 US & Canada Latin America EMEA Asia +2% -6% Flat +2% Avient ex.
Q1 2023 (TOTAL COMPANY) $846 $829 Q1 23 Q1 24 $134 $143 Q1 23 Q1 24 17.3% Sales Adjusted EBITDA (in millions) $0.63 $0.76 Q1 23 Q1 24 Adjusted EPS (in millions) + 7% + 21% Sales Adjusted EBITDA Adjusted EPS 6 - 2% 15.8% +150 bps * * * Adjusted EBITDA Margin % Q1 2024 SEGMENT PERFORMANCE (COLORS, ADDITIVES & INKS) $537 $515 Q1 23 Q1 24 $91 $97 Q1 23 Q1 24 18.8% Sales Adjusted EBITDA (in millions) (in millions) + 7% Sales Adjusted EBITDA 7 - 4% 17.0% +180 bps * * * Adjusted EBITDA Margin % • Year over year demand continues to improve for the segment but slowly due to continued weakness in Europe • Raw material deflation & cost reduction actions primary drivers of adjusted EBITDA growth and margin expansion of +180 bps vs Q1 2023 Q1 2024 SEGMENT PERFORMANCE (SPECIALTY ENGINEERED MATERIALS) $310 $314 Q1 23 Q1 24 $64 $73 Q1 23 Q1 24 23.2% Sales Adjusted EBITDA (in millions) (in millions) + 14% Sales Adjusted EBITDA 8 + 1% 20.8% +240 bps * * * Adjusted EBITDA Margin % • Sales growth in defense end market offset by weaker demand in telecommunications end market • Raw material deflation and favorable mix impact from defense sales primary drivers of adjusted EBITDA growth and margin expansion of +240 bps vs Q1 2023 Q1 EBITDA BRIDGE (TOTAL COMPANY) 9 $ millions CAI: Price / Mix (1) Deflation 16 SEM: Price / Mix 4 Deflation 7 Net Price Benefit 26 Wage/Other Inflation (9) FX (2) Q1 2024 $143 Adjusted EBITDA Q1 2023 $ 134 Demand (6) • Positive net price benefit: o Favorable raw material deflation in both segments • Wage and other inflation more than offset cost reductions/synergies 2024 G U I DAN CE FY 2024 GUIDANCE Original Revised Adjusted EBITDA $505 to $535 million $510 to $535 million Adjusted EPS $2.40 to $2.65 $2.50 to $2.65 Interest Expense $105 to $110 million $105 million Adjusted Effective Tax Rate 23% to 25% 23% to 25% Capital Expenditures ~$140 million ~$140 million 11 Q2 2024: Adjusted EPS of $0.71 CE O “ TO P O F MI N D” FO CU S ARE AS AREAS OF FOCUS 13 +7% Drive Profitable Organic Top-Line Growth with Margin Expansion Amplify Innovation Build Leadership & Talent Pipeline AP P E N DI X 16 Performance Additives 15% Pigments 13% TiO2 9% Dyestuffs 2% Polyethylene 10%Nylon 5% Polypropylene 4% Styrenic Block Copolymer 4% Other Raw Materials 38% ~40% hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials RAW MATERIAL BASKET SEGMENT DATA U.S. & Canada 41% EMEA 36% Asia 18% Latin America 5% 2023 SEGMENT, END MARKET AND GEOGRAPHY GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 19% Packaging 23%Industrial 16% Building and Construction 9% Telecommunications 4% Energy 5% Defense 7% END MARKET REVENUE $2,007M $358M $1,138M $224M Sales EBITDA Specialty Engineered Materials Color Additives and Inks $502M$3,143M (1) Transportation 10% Healthcare 7% 18 (1) Total company sales and adjusted EBITDA of $3,143M and $502M, respectively, include intercompany sales eliminations and corporate costs 2023 REVENUE | $2 .0 BILLION US & Canada 34% EMEA 37% Asia 21% Latin America 8% END MARKET REGION 19 Packaging 34% Consumer 21% Healthcare 8% Industrial 15% Transportation 9% Building & Construction 10% Telecommunications 1% Energy 2% COLOR, ADDITIVES & INKS 2023 REVENUE | $1 .1 BILLION US & Canada 52% EMEA 35% Asia 13% 20 Packaging 5% Consumer 16% Healthcare 6%Industrial 16% Transportation 12% Telecommunications 9% Energy 10% Defense 18% Building & Construction 8% END MARKET REGION SPECIALTY ENGINEERED MATERIALS Packaging 32% Consumer 26% Healthcare 9% Industrial 13% Building & Construction 6% Telecommunications 2% Energy 2% Defense 1% Asia (18% of sales) Transportation 9% 2023 AVIENT REGIONAL SALES Packaging 25% Consumer 13% Healthcare 5% Industrial 18% Building & Construction 9% Energy 5% Defense 8% EMEA (36% of sales)Transportation 13% Packaging 13% Consumer 22% Healthcare 10% Industrial 16% Building & Construction 12% Energy 6% Defense 8% US & Canada (41% of sales) Transportation 9% Packaging 59% Consumer 22% Healthcare 2% Industrial 8% Building & Construction 4% LATAM (5% of sales) Transportation 5% Telecommunications 4% Telecommunications 4% 21 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.
https://www.avient.com/sites/default/files/2021-08/edgetek-phase-shift-antenna-case-study.pdf
ANTENNA MANUFACTURER P H A S E S H I F T A N T E N N A • Achieved miniaturization through customized high dielectric constant (Dk) materials • Offered high Dk grades with superior processing window and stability compared to lower Dk ( < Dk6.0) grades • Verified dimensional and electrical stability would also meet needs of navigation system substrate to streamline sourcing Edgetek™ Formulations for 5G KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2023-03/Application Snapshot Intraoral Scanner.pdf
SURGICAL INSTRUMENT OEM I N T R A O R A L S C A N N E R • Chemical and impact resistance • Customized pre-colored solutions • Color and dimension stable after sterilization • Minimum color deviation and easy to process • Technical support and color expertise • Offered bright white and customized pre- colored formulations in PPSU and PSU for intraoral scanner head and body parts • Provided a solution that can withstand up to 1,000 cycles autoclave, with good chemical and excellent impact resistance • Met customer request for color stability after processing and biocompatible compliance Transcend™ Premier Healthcare Colorants KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2024-04/CCG Application Snapshot_Endoscope.pdf
Surgical instrument oem SURGICAL INSTRUMENT OEM E N D O S C O P E C O M P O N E N T S • Functional differentiation • ISO 10993 compliance • Excellent resistance to steam sterilization • Excellent chemical resistance • Delivered a variety of bright, distinguishing color choices for functional differentiation • Minimized color deviation • Provided a biocompatible solution • Offered low MOQ with flexible supply Transcend Premier PPSU Healthcare Pre- colored Solutions KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2024-02/CCG Mini Case Study_ 3D Dental Scanner_0.pdf
DENTAL TOOL OEM 3 D D E N T A L S C A N N E R • Achieve accurate color match to non-polysulfone (PSU) components • Must be compatible with hospital disinfectants and survive repeated steam sterilization • Developed precise color match to other resins used in adjacent parts, maintaining accurate brand identification • Provided expertise in pigments and critical color manufacturing for high performance resins • Customized a high-performance solution able to withstand steam sterilization in an autoclave Transcend™ Precolored Gray and Precolored White PSU KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2021-11/eccoh-5565-antenna-power-cable.pdf
CABLE MANUFACTURER A N T E N N A P O W E R C A B L E • Elongation at -40°C • High temperature bend test at 130°C • Low water absorption • Resistance to braided shielding • Fire performance to pass CPR class Dca • Provided best cold performance compared to competitor solutions • Enabled faster processing with increased line speed • Met material fire performance requirements and all other performance criteria ECCOH™ 5565 Formulation KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2020-07/trilliant-xr-ct-and-mri-scanners.pdf
Trilliant XR - CT and MRI Scanners MEDICAL DEVICE MANUFACTURER M R I A N D C T S C A N N E R S • Uniform shielding with no “hot spots” • X-ray shielding up to 140 KeV • Meet European Union’s Restriction of Hazardous Substances (RoHS) future compliance requirements • Provided a lead alternative solution that delivered improved geometric flexibility for more uniform radiation shielding • Lowered shielding component costs 30-50% by eliminating machining and assembly steps Trilliant™ XR Lead Replacement Thermoplastics KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2021-10/bergamid-house-of-sports-gun-case-study-one-pager-1020.pdf
UTG® HUNTING & SHOOTING SPORTS G U N M A G A Z I N E H O U S I N G • Good dimension stability with low warpage at different temperature ranges (70˚C, room temperature, -40˚C) • Good appearance with less glass fiber exposure • Provided durable and impact-resistant glass fiber reinforced formulation with excellent surface finish and good dimensional stability for smooth operation • Passed all temperature durability and drop tests to confirm use in outdoor environments • Collaborated with customer via technology services to accelerate product development Bergamid™ Customized Polyamide Formulation KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2024-08/Stan-Tone Instrument Panel Case Study Snapshot.pdf
AUTOMOTIVE INTERIORS MANUFACTURER I N S T R U M E N T P A N E L • Consistent and customizable color able to support heat and light shielding • Compliance with automotive industry standards • Provided breadth of high-performance custom color solutions that met specific customer needs • Offered dependable quality and technical support from ideation stages through final production while navigating all regulatory requirements Stan-Tone VC and VCP Vinyl Dispersions KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2021-06/cp204a-ya-2021-avient.pdf
BHD. 9-3A-1, JLN METRO PERDANA BARAT 1, TMN USAHAWAN KEPONG UTARA, 52100 KUALA LUMPUR WP KUALA LUMPUR A V I E N T C O L O R A N T S M A L A Y S I A S D N .