https://www.avient.com/sites/default/files/2024-01/AVNT January IR Presentation_w Non-Gaap Recs.pdf
&
Canada
64%
36%
Specialty
Engineered
Materials
Color
Additives
and Inks
40%
37%
18%
9% 4% 4%
Building &
Energy Telecom
Geography
Segment
Industry
4
CREATING A WORLD-CLASS
SUSTAINABLE ORGANIZATION
1. 6% annualized long term sales
growth leveraging sustainable
solutions, composites, healthcare
and emerging regions
2.
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
3.1 3.3 3.7
3.0
3.7
4.7 4.8
6.8 6.8
8.7
11.1
Av
ie
nt
AV
PM FM
N C
FREE CASH FLOW CONVERSION
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/resource-center?document_type=0&industry=0&product_family=1688&product_subfamily=0&product_name=0&op=FILTER RESULTS&form_id=resource_filter_form&page=2
Injection molded Complēt™ long carbon fiber reinforced nylon composite delivered high stiffness and low weight while simplifying manufacturing
https://www.avient.com/resource-center?document_type=0&form_id=resource_filter_form&industry=0&op=FILTER RESULTS&product_family=1688&product_name=0&product_subfamily=0&page=2
Injection molded Complēt™ long carbon fiber reinforced nylon composite delivered high stiffness and low weight while simplifying manufacturing
https://www.avient.com/resource-center?document_type=0&industry=0&product_family=1688&product_subfamily=0&product_name=0&op=FILTER RESULTS&form_build_id=form-m7GxLBh51JBZ0No9Mz3kWskC8vMi4di1Pw6sPq1Huww&form_id=resource_filter_form&page=2
Injection molded Complēt™ long carbon fiber reinforced nylon composite delivered high stiffness and low weight while simplifying manufacturing
https://www.avient.com/news/archives?page=32
New Edgetek™ and LubriOne™ PKE Materials from Avient Replace Nylon and Acetal, Reduce Carbon Footprint
https://www.avient.com/news/archives?page=37
CLEVELAND – April 28, 2020 – PolyOne today announced the launch of ColorMatrix™ Amosorb™ 4020G, a non-nylon based, low-haze oxygen scaven
https://www.avient.com/knowledge-base/article/composites-explained
Thermoplastics used in making composites range from polypropylene (PP), nylon (PA) and polycarbonate (PC) to polyester, polyphenylene sulfide (PPS), and polyetheretherketone (PEEK).
https://www.avient.com/knowledge-base/case-study/closing-loop-post-consumer-recycled-pet-beverage-bottles
ColorMatrix™ Amosorb™ 4020G is a non-nylon based, low-haze oxygen scavenger for polyethylene terephthalate (PET) rigid packaging.
https://www.avient.com/industries/consumer/consumer-staples
More
Could polyketone be the next-generation nylon alternative?
https://www.avient.com/resource-center?document_subtype=216&document_type=59&page=1
The focus for this study was to develop thermoplastic elastomer compounds that would overmold onto substrates made from Nylon (PA), Polycarbonate (PC), Acrylonitrile-butadiene-styrene (ABS), and PC/ABS alloys