https://www.avient.com/sites/default/files/2022-11/AVNT Q3 2022 Earnings Presentation - Website Final.pdf
Additionally, Adjusted EPS excludes the impact of special items and amortization expense associated with intangible assets.2 T RAN S FO R MAT IO NAL OVE RV IE W Avient Protective Materials Dyneema ® RECENT TRANSACTIONS Acquired Divested $1.45 B $0.95 B 4 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) (1) $250M reflects estimated undrawn revolver following the divestiture of Distribution 5 PREVIOUS TRANSACTIONS Performance Solutions Products & $0.8 B COLOR $1.4 B Acquired (2020)Divested (2019) 6 • 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.
Purchase price multiple rapidly declining on strength of business and synergy capture 7 $133 $201 2019PF 2022E 7 Clariant Color EBITDA Growth Purchase Price Multiple 10.8x 7.0x 6.4x 2019PF 2021 2022E w/ Full Synergies (1) (1) 11.9% 16.3% 2019PF 2022E EBITDA Margins (1) CLARIANT COLOR: TRANSFORMATIONAL ACQUISITION ($ in millions) (1) Financial information is pro forma to include a full year of Clariant Color business SUNBELT PVC Resins DSS 20 Acquisitions $4.8B Investment $2.7B of Annual Revenue 5 Divestments $2.3B Proceeds TPE PP&S HISTORIC SPECIALIZATION THROUGH M&A 8 Distribution DSM Protective Materials BOLT-ON ACQUISITION HISTORY 9 Commercial Resources Operating Income ($ in millions) Operating Margins 259 363 At Acquisition 2022E $40 $139 At Acquisition 2022E 9% 22% At Acquisition 2022E Established Acquisitions (> 7 years) + 40% + 248% + 1300 bps I N V E S T T O G R O W SPECIALTY TRANSFORMATION T O D A Y 7% 46% 67% 86% 100% 0% 20% 40% 60% 80% 100% 2005 2010 2019 2021 2022 PF % o f A d ju st ed E B IT D A • Commodity JVs • Distribution • Performance Products & Solutions • Specialty Businesses (1) Adjusted EBITDA is EBITDA excluding corporate costs and special items (2) Pro forma for the acquisition of Dyneema® and divestiture of Distribution (1 ) (2) 10 Healthcare 4% Packaging 8% Consumer 10% Building & Construction 43% Industrial 15% Transportation 14% Energy 4% Telecom. 2% 2006 2022 Pro Forma Healthcare 8% Packaging 23% Consumer 21% Building & Construction 10% Industrial 15% Transportation 9% Energy 4% Telecom. 4% Defense 6% END MARKET FOCUS ON LESS CYCLICAL INDUSTRIES 11 14.8% 17.6% 21.0% 2018 2020 2022 PF 1.8% 2006 15.3% 16.2% 17.0% 2018PF 2020PF 2022E CAI 2.7% 2006 SEM SPECIALTY EBITDA MARGIN EXPANSION 12 • Portfolio transformation accelerates growth in less cyclical, higher margin end markets • Investments in our composites platform continue to drive margin expansion (1) (1) (1) 2018 and 2020 financial information is pro forma to include a full year of Clariant Color acquisition PORTFOLIO EVOLUTION OVER THE YEARS 13 Adj.
OPS) 16 Sales Adjusted EBITDA $818 $823 2021 2022 + 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) 17 Price increases more than offset raw material and supply chain impacts $ millions CAI: Price / Mix 68 Inflation (44) SEM: Price / Mix 41 Inflation (26) Net Price Benefit 39 Wage and Energy Inflation (14) Clariant Color Integration Synergies 6 Incentives, Other Employee Costs 14 FX (11) Q3 2022 $137 Adjusted EBITDA Q3 2021 $ 142 Demand (39) Q3 2022 SEGMENT PERFORMANCE 18 CAI $587 $566 Sales ($ in millions) $93 $93 EBITDA SEM Pro Forma $326 $319 Sales $70 $62 EBITDA (+ 4% excluding FX) - 4% - 2% (+ 5% excluding FX) Flat (+ 7% excluding FX) - 11% (- 7% excluding FX) $500 $585 Cont.
https://www.avient.com/resources/safety-data-sheets?page=7060
CESA LASER-BCO SL02613022 BRK#165363
PARENT 19WA ONYX UV POM
LL FDM 364146 BL TR PET UV SMARTBATCH
https://www.avient.com/resources/safety-data-sheets?page=6961
CESA-DESICCANT 10387562
LT BRONZE UV ASA
050RD2074 RED UV
https://www.avient.com/resources/safety-data-sheets?page=7133
WHITE W/UV L9-1872-V
RPVC BRONZE W/UV L6-1983-V
CESA SP TONER
https://www.avient.com/resources/safety-data-sheets?page=7173
CESA-MODIFICADOR 10395507
GREEN ABS UV
BLUE ABS UV
https://www.avient.com/resources/safety-data-sheets?page=7140
TANGERINE PE UV V7
MAROON UV PE V2
PEA3613045 CESA-LASER PEA3613045-ZT
https://www.avient.com/resources-0?document_type=59&document_subtype=0&industry=0&product_family=0&product_name=0&op=FILTER RESULTS&form_id=resource_filter_form&page=45
Cesa™ Scratch and Mar Product Bulletin
Elastomeric insert for automotive supplier created with d Onflex-S™ TPE styrenic block polymers for UV stabilization
Learn more about Silcosperse Laser Marking additives are laser absorbing silicone dispersions that use UV, YAG or fiber laser technologies
https://www.avient.com/sites/default/files/2021-08/eccoh-5978-uv-case-study-one-pager.pdf
CABLE MANUFACTURER A E R I A L D R O P C A B L E J A C K E T • Pass clamp test requested by end user • Strong UV resistance & mechanical performance • Excellent processing • Good fire performance to pass CPR class Cca / Dca • Low shrinkage (< 1%) • Exceeded material fire performance requirements and met all other performance criteria • Simplified supply chain with local manufacture in Europe • Enabled customer to run material at optimum processing conditions by providing support with machine set up.
ECCOH™ 5978 UV formulations KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2022-07/ECCOH_ 5978 UV - Aerial Drop Cable Jacket - Applications Snapshot.pdf
CABLE MANUFACTURER A E R I A L D R O P C A B L E J A C K E T • Pass clamp test requested by end customer • Strong UV resistance & mechanical performance • Excellent processing • Good fire performance to pass CPR class Cca / Dca • Low shrinkage (< 1%) • Exceeded material fire performance requirements and met all other performance criteria • Simplified supply chain with local manufacture in Europe • Enabled customer to run material at optimum processing conditions by providing support with machine set up ECCOH™ 5978 UV Formulation KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2022-10/Paint Sprayer Application Snapshot_0.pdf
INDUSTRIAL EQUIPMENT OEM P A I N T S P R A Y E R • Meet or exceed UL94 V-2 flame rating • Able to interact with existing bulk chemistry without compromising functionality or brand color and aesthetics • Deliver cost targets while providing operational efficiency and a working capital strategy • Accelerate product development timeline, and provide UL94 testing verification prior to production trials • Achieved all flame rating requirements and assisted with regulatory approvals • Developed a proprietary Smartbatch solution that minimized potential effects from interaction with current bulk chemistries • Provided needed support with qualification process and testing requirements, saving time and cost • Afforded on-going support with A2LA test labs, sampling, and lot-to-lot consistency with exacting performance Smartbatch™ Formulation: Cesa™ Flame Retardant Additives and OnColor™ Colorants KEY REQUIREMENTS WHY AVIENT?
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