https://www.avient.com/sites/default/files/2024-08/Avient-2023-Sustainability-Report_6.pdf
Environmental Protection Agency’s (EPA) Toxic Substance Control Act (TSCA) inventory reset rule.
To better reflect the actual price of CO2 to society,
and ensure costs are within the ranges of the scenarios we use for assessing climate transition risks, Avient has
instituted an internal cost of carbon.
Environmental Protection Agency’s (EPA) Toxic Substance Control Act (TSCA) inventory reset
rule.
https://www.avient.com/sites/default/files/2023-06/AVNT June IR Conferences w_Non GAAP Recs.pdf
In particular, these include statements relating to future actions; prospective changes in raw
material costs, product pricing or product demand; future performance; estimated capital expenditures; results of current and anticipated market conditions and market strategies; sales efforts; expenses; the outcome of contingencies such as legal
proceedings and environmental liabilities; and financial results.
This is due to the inherent difficulty of forecasting the timing and amount of
certain items, such as, but not limited to, mark-to-market adjustments associated with benefit plans, environmental remediation costs, acquisition-related costs, and other non-routine costs.
GUIDANCE
12
14.8%
15.8%
Adjusted EBITDA Margin %
Better-than-expected margins
driven by:
• Resilient demand for
composites and sustainable
solutions which improved
mix of higher margin
applications
• Deceleration of raw material
inflation
• Cost reduction activities
Q1 EBITDA BRIDGE
13
$ millions
CAI:
Price / Mix 19)
Inflation (4)
SEM:
Price / Mix 6)
Inflation (4)
Net Price Benefit 17)
Wage and Energy Inflation (13)
Cost Reductions 8)
FX (6)
Q1 2023 Actual $134)
Adjusted
EBITDA
Q1 2022 Pro Forma $ 176)
Demand (48) • Weak demand
conditions in-line
with previous
expectations
• Pricing continues to
cover inflation of raw
materials, wages
and energy
U.S. & Canada
38%
17%
Q1 2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
23%
Building and
6%Telecommunications
END MARKET REVENUE
(1) Total company sales and adjusted EBITDA of $846M and $134M, respectively, include intercompany sales eliminations and corporate costs
$537M $91M
$310M $64M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$134M$846M
(1)
14
Q1 2023 SALES BY REGION
Yo Y C H A N G E ( E X C L .
https://www.avient.com/investor-center/news/future-mobility-innovations-gain-traction-visionary-polyone-materials-and-services-portfolio
Lightweighting: Replacing metal with advanced composite laminates for reduced weight, better dent resistance, and lower warranty costs
Reduced VOCs: Eliminating paint with a metallic colorant for vehicle exterior components to reduce cost and remove VOC emissions
Comptek, SilCoTec, Gordon Composites and Polystrand, including whether such businesses will be accretive, retain the management teams of acquired businesses, and retain relationships with customers of acquired businesses; 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; our ability to achieve new business gains; the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks; changes in polymer consumption growth rates and laws and regulations regarding the disposal of plastic in jurisdictions where we conduct business; changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online; 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; an inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital reductions, cost reductions and employee productivity goals; an inability to raise or sustain prices for products or services; our ability to continue to pay cash dividends, including at the increasing rate, which will be subject to, among other factors, market conditions, our cash flow and cash requirements and restrictions contained in any of our debt agreements; and other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and changes in the rate of inflation.
https://www.avient.com/news/archives?page=35
OnColor™ WC Wire and Cable Colorants Feature Cost-Effective Performance
CLEVELAND – June 24, 2020 – PolyOne today launched OnColor™ WC Choice, a new line of cost-effective colorants that reliably achieve the per
https://www.avient.com/knowledge-base/case-study/electric-car-quickens-pulse-color
Making matters worse, the pre-colored PC/ABS material used to mold the parts required up to 10 weeks for delivery, further hampering operational efficiency and increasing inventory costs.
Reduced material costs for the affected parts by 16 percent
https://www.avient.com/knowledge-base/article/tote-maker-differentiates-impact-modification?rtype[]=1124
In addition, the more efficient impact modifier saved the company nearly $40,000 a year in processing costs.
In addition, reducing the tote wall thickness resulted in a savings of about $470,000 a year, based on reduction in material usage and lower unit costs for fuel to transport products to retailers.
https://www.avient.com/knowledge-base/article/tote-maker-differentiates-impact-modification?ind[]=21537
In addition, the more efficient impact modifier saved the company nearly $40,000 a year in processing costs.
In addition, reducing the tote wall thickness resulted in a savings of about $470,000 a year, based on reduction in material usage and lower unit costs for fuel to transport products to retailers.
https://www.avient.com/knowledge-base/case-study/electric-car-quickens-pulse-color?rtype[]=1124
Making matters worse, the pre-colored PC/ABS material used to mold the parts required up to 10 weeks for delivery, further hampering operational efficiency and increasing inventory costs.
Reduced material costs for the affected parts by 16 percent
https://www.avient.com/knowledge-base/case-study/electric-car-quickens-pulse-color?ind[]=6601
Making matters worse, the pre-colored PC/ABS material used to mold the parts required up to 10 weeks for delivery, further hampering operational efficiency and increasing inventory costs.
Reduced material costs for the affected parts by 16 percent
https://www.avient.com/sites/default/files/resources/POL%2520Credit%2520Suisse%2520IR%2520Presentation%2520w%2520non-GAAP%25209%252017%25202013.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
The final amount of charges resulting from the planned North American asset realignment and the Company’s ability to realize anticipated savings and
operational benefits from the asset realignment;
Our ability to achieve the strategic and other objectives relating to the acquisition of Spartech Corporation, including any expected synergies;
Our ability to successfully integrate Spartech and achieve the expected results of the acquisition, including, without limitation, the acquisition being
accretive;
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 financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate
liquidity) to maintain their credit availability;
The speed and extent of an economic recovery, including the recovery of the housing market;
Our ability to achieve new business gains;
The effect on foreign operations of currency fluctuations, tariffs, and other political, economic and regulatory risks;
Changes in polymer consumption growth rates in the markets where we conduct business;
Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online;
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;
An inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital
reductions, cost reductions, employee productivity goals, and an inability to raise or sustain prices for products or services;
An inability to raise or sustain prices for products or services;
An inability to maintain appropriate relations with unions and employees;
The inability to achieve expected results from our acquisition activities;
Our ability to continue to pay cash dividends;
The amount and timing of repurchases of our common shares, if any; and
Other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and
changes in the rate of inflation.
• The above list of factors is not exhaustive.
• We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
EPS: $1.00
$0.54
$0.68
$0.30
$0.45
$0.60
$0.75
H1'12 H1'13
Adjusted EPS
$101.0
$132.6
$50.0
$100.0
$150.0
H1'12 H1'13
Adjusted Operating Income
(millions)
+31%
$68.6
$97.7
$50.0
$75.0
$100.0
H1'12 H1'13
Specialty Operating Income
(millions)
First Half 2013 Financial Highlights
• Adjusted EPS increased 26% over prior
year first half
• Operating Income expanded 31%
versus first half 2012
• Specialty operating income up 42%
• Revenue grew 22% versus 1H ‘12
• Portfolio transformation activities
Completed acquisition of Spartech
Divested non-core Resin business
+26%
+42%
Page 12
• Significant Debt Maturities $ 1,010
Other Debt 21
• Total Debt at 6/30/13
Less: Cash
Net Debt
• Available Liquidity
Cash
ABL Availability
Total Liquidity
• Net Debt / EBITDA = 1.9x
• Net Debt / EBITDA = 2.1x*(tax adjusted)
$392
310
$702
$1,031
392
$639
$50
$360
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Significant Debt Maturities
As of June 30, 2013
($ millions)
Page 13
Coupon Rates: 7.500% 7.375% 5.250%
*Pro Forma TTM for taxes on resin gain
Debt Maturities & Liquidity Summary – 6/30/13
Cash Balance = $392M
Net Debt / EBITDA* = 1.9x
• Repurchased
~3.0M shares
YTD in 2013
• 17 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
• North American
manufacturing alignment
Acquisitions
*TTM 6/30/2013
Use of Cash
Page 14
Why Invest In PolyOne?