https://www.avient.com/sites/default/files/2023-07/Avient-2022-Sustainability-Report.pdf
POTENTIAL IMPACT ON BUSINESS POTENTIAL FINANCIAL IMPACTS POTENTIAL OPPORTUNITIES CLIMATE-RELATED IMPACTS Time Horizon Inability to remain competitive Regulatory operations curtailment Reduced production capacity Increased operating costs Reputational damage Reduced demand for products Fines/other regulatory impacts Revenue Expenditures Assets Capital costs More efficient production processes Emergence of new technologies Increased market share TR AN SI TI ON POLICY AND LEGAL Risk of regulatory change (carbon pricing) S/M/L ✓ ✓ ✓ ✓ ✓ ✓ ENERGY TECHNOLOGY Risk of energy disruption M ✓ ✓ ✓ ✓ ✓ Opportunity to reduce resource consumption S/M/L ✓ ✓ ✓ ✓ Opportunity for new technology to enable use of sustainable feedstocks M ✓ ✓ ✓ ✓ ✓ MARKET Risk of decreased availability of raw materials M ✓ ✓ ✓ ✓ ✓ Risk of product alternatives M ✓ ✓ ✓ ✓ Opportunity for products with low environmental impact S/M/L ✓ ✓ ✓ ✓ ✓ REPUTATION Risk of perceived inadequacy of climate action M/L ✓ ✓ ✓ PH YS IC AL ACUTE Risk of extreme temperatures S/M/L ✓ ✓ ✓ ✓ ✓ Risk of hurricanes/wind S/M/L ✓ ✓ ✓ ✓ ✓ Risk of flooding S/M/L ✓ ✓ ✓ ✓ ✓ CHRONIC Risk of drought S/M/L ✓ ✓ S Short: 0–5 years M Medium: 5–15 years L Long: 15–30 years HOME | Contents | Message from the CEO | About Us | People | Products | Planet | Performance | Metrics | Index Sustainability Report | 2022 102 https://www.avient.com/company/sustainability/sustainability-report/reporting/cdp-climate-change-report Year Ended December 31, Reconciliation to EBITDA and Adjusted EBITDA 2006 2018 2022 Sales $ 2,622.4 $ 3,533.4 $ 3,396.9 APM pro forma adjustments - 8 months 2022* 256.1 Pro forma sales $ 3,653.0 Net income from continuing operations – GAAP $ 133.5 $ 160.8 $ 83.1 Income tax expense (benefit) 29.7 36.4 (19.3) Interest expense 63.1 62.8 119.8 Depreciation and amortization 57.1 91.5 162.5 EBITDA $ 283.4 $ 351.5 $ 346.1 Special items, before income tax (34.0) 59.5 194.0 Interest expense included in special items — — (26.0) Depreciation and amortization included in special items — (3.0) (5.5) JV - equity income (107.0) — — APM pro forma adjustments - 8 months 2022* — — 83.1 Adjusted EBITDA $ 142.4 $ 408.0 $ 591.7 EBITDA as a % of sales 5.4 % 11.5 % 16.2 % Reconciliation of Pro Forma Adjusted EPS 2006 2018 2022 Net income from continuing operations attributable to Avient common shareholders $ 130.9 $ 161.1 $ 82.8 Joint venture equity earnings, after tax (68.5) — — Special items, after tax (21.2) 44.6 144.6 Special items, tax adjustments (30.0) (10.4) (28.4) Amortization expense, after tax 1.4 19.5 49.0 Adjusted net income from continuing operations attributable to Avient common shareholders $ 12.6 $ 214.8 $ 248.0 Pro forma adjustments* 13.6 APM pro forma amortization expense, after tax* 19.1 Pro forma adjusted net income from continuing operations attributable to Avient shareholders $ 280.7 Diluted shares 92.8 80.4 92.2 Adjusted EPS attributable to Avient common shareholders $ 0.14 $ 2.67 $ 3.04 * Pro forma adjustment to reflect APM results for the period before Avient ownership including the impacts of debt financing and paydown of debt with net proceeds from the Distribution sale.