https://www.avient.com/knowledge-base/case-study/renewable-energy-floating-solar-panels
Renewable resources on the other hand replenish naturally, and can reduce pollution, mitigate climate change, and support better health outcomes for humans.
https://www.avient.com/sites/default/files/2022-07/Avient 2021 Sustainability Report 7-26-22.pdf
We acknowledge the implications of climate change.
In an effort to enhance our Enterprise Risk Management system,
in 2022 Avient will complete formal Climate Change Scenario Analyses as recommended by the Task Force on
Climate-related Financial Disclosures (TCFD).
Who We Are—Revenue by Geography and End Market
Sustainability Report | 2021 100
Recommended Disclosure Avient Disclosures
Describe the board’s oversight of climate-related risks and opportunities
Message from the Governance and Corporate Responsibility Committee
Planet—Climate Change
Avient 2022 Proxy Statement Pages 31–32, 34
2021 CDP Climate Change Response—C1.1b
Describe management’s role in assessing and managing climate-related risks and opportunities
Message from Avient’s VP of Sustainability
People—Management Approach EH&S
2021 CDP Climate Change Response—C1.2, C1.2a
Describe the climate-related risks and opportunities the organization has identified over the short, medium, and
long term
2021 CDP Climate Change Response—C2.1, C2.2C, C2.3a, C2.4a
Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and
financial planning
2021 CDP Climate Change Response—C2.5, C2.6
Describe the resilience of the organization’s strategy, taking into consideration different climate-related
scenarios, including a 2°C or lower scenario
2021 CDP Climate Change Response—C3.1a, C3.1g
Risk Management
Describe the organization’s processes for identifying and assessing climate-related risks
Planet—Climate Change
2021 CDP Climate Change Response—C2.2, C2.2a, C2.2b
Describe the organization’s processes for managing climate-related risks
Planet—Climate Change
2021 Climate Change Response—C2.2, C2.2d
Describe how processes for identifying, assessing and managing climate-related risks are integrated into the
organization’s overall risk management
Planet—Climate Change
2021 CDP Climate Change Response—C2.2, C3.1c
Metrics & Targets
Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its
strategy and risk management process
Planet—Climate Change
2021 CDP Climate Change Response—C6.1, C6.2, C6.3, C6.5
Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas emissions and the related risks
Planet—Climate Change
2021 CDP Climate Change Response—C6.1, C6.2, C6.3, C6.5
Describe the targets used by the organization to manage climate-related risks and opportunities and
performance against targets
2021 CDP Climate Change Response—C4
Task Force on Climate-related Financial Disclosures (TCFD) Index
Sustainability Report | 2021 101
Below is a reconciliation of non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP.
https://www.avient.com/products/long-fiber-technology/long-fiber-solutions/performance-additives
Colorants can meet brand standards, UV packages can offer additional protection for applications with high UV exposure, lubricants can minimize wear and tear, flame retardants can provide flame, smoke, and/or toxicity compliance, and additional durability can ensure your products perform in extreme climates (hot or cold).
https://www.avient.com/company/sustainability/sustainability-report/people/ehs
At the highest level, Avient’s Board of Directors has had a long-standing Environmental, Health & Safety (EH&S) Committee overseeing and monitoring environmental, health, safety, security, and product stewardship standards—including oversight of climate-related risks*.
https://www.avient.com/sites/default/files/2023-01/AVNT Dec 2022 Earnings Presentation.pdf
Global Compact &
fulfilled Communication of Progress (COP)
requirements
• New Sustainability Strategy overview page including
our 2022 AIP ESG metrics
• New ESG Performance page with ESG ratings,
awards, and certifications
• Increased disclosures on carbon emissions, including
disclosure of Climate Change Scenario Analysis
• Added new Product Stewardship and Chemical
Management policies
• Enhanced data reporting for Workforce
Demographics
• Improved social disclosures on human rights,
dependent care and special leave and strategic
training management
2021 SUSTAINABILITY REPORT
Launching integrated sustainability website in parallel with report
Aligned with leading reporting frameworks
6
Released July 2022
ESG RATINGS PERFORMANCE
ESG AWARDS AND CERTIFICATIONS
ESG PERFORMANCE & AWARDS
84th
3
1
2
7
T RAN S FO R MAT IO NAL
OVE RV IE W
Avient Protective
Dyneema
®
RECENT TRANSACTIONS
Acquired Divested
$1.45 B $0.95 B
9
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
Cas
h
$544
Undr
awn
Rev
olve
r
$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) $250M reflects estimated undrawn revolver following the divestiture of Distribution
10
PREVIOUS TRANSACTIONS
Performance
Solutions
Products &
$0.8 B
COLOR
$1.4 B
Acquired (2020)Divested (2019)
11
• 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.
https://www.avient.com/sites/default/files/2025-01/AVNT Dec 2022 Earnings Presentation Updated.pdf
Global Compact &
fulfilled Communication of Progress (COP)
requirements
• New Sustainability Strategy overview page including
our 2022 AIP ESG metrics
• New ESG Performance page with ESG ratings,
awards, and certifications
• Increased disclosures on carbon emissions, including
disclosure of Climate Change Scenario Analysis
• Added new Product Stewardship and Chemical
Management policies
• Enhanced data reporting for Workforce
Demographics
• Improved social disclosures on human rights,
dependent care and special leave and strategic
training management
2021 SUSTAINABILITY REPORT
Launching integrated sustainability website in parallel with report
Aligned with leading reporting frameworks
6
Released July 2022
ESG RATINGS PERFORMANCE
ESG AWARDS AND CERTIFICATIONS
ESG PERFORMANCE & AWARDS
84th
3
1
2
7
T RAN S FO R MAT IO NAL
OVE RV IE W
Avient Protective
Dyneema
®
RECENT TRANSACTIONS
Acquired Divested
$1.45 B $0.95 B
9
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) $250M reflects estimated undrawn revolver following the divestiture of Distribution
10
PREVIOUS TRANSACTIONS
Performance
Solutions
Products &
$0.8 B
COLOR
$1.4 B
Acquired (2020)Divested (2019)
11
• 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.
https://www.avient.com/sites/default/files/2023-07/CORE Medical Manikin Case Study Snapshot.pdf
LEADING MEDICAL
TRAINING COMPANY
M E D I C A L M A N I K I N S
• Ability to color code various body parts for more accurate
teaching and instruction
• Maintain durability and performance through repeated use
in a variety of training scenarios
• Meet customer’s regulatory requirements
• Provided specific colors and hardness for
easier identification of body parts
• Supplied a non-phthalate plastisol
formulation that maintained strength and
flexibility over an extended time
• Offered robust technical support and
regulatory assistance to meet all compliance
directives as required by customer
Core™ Non-Phthalate Plastisols
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2023-03/AVNT Q2 2022 Earnings Presentation - Website Version.pdf
Global Compact &
fulfilled Communication of Progress (COP)
requirements
• New Sustainability Strategy overview page including
our 2022 AIP ESG metrics
• New ESG Performance page with ESG ratings,
awards, and certifications
• Increased disclosures on carbon emissions, including
disclosure of Climate Change Scenario Analysis
• Added new Product Stewardship and Chemical
Management policies
• Enhanced data reporting for Workforce
Demographics
• Improved social disclosures on human rights,
dependent care and special leave and strategic
training management
2021 SUSTAINABILITY REPORT
Launching integrated sustainability website in parallel with report
Aligned with leading reporting frameworks
9
ESG PERFORMANCE & AWARDS
10
84th
ENVIRONMENTAL
SOCIAL
GOVERNANCE
1
3
(as of 6/30/22)
2022 O U TLO O K
$429
$490
$3.05
$3.50
FY 2022 GUIDANCE
(TOTAL COMPANY: CURRENT PORTFOLIO)
12
Sales Adjusted Operating Income
$4,819
$5,100
+ 6%
Adjusted EPS
+ 14% + 15%
(in millions) (in millions)
(+ 9% excluding FX) (+ 18% excluding FX) (+ 20% excluding FX)
13
CASH FLOW / LEVERAGE
($ millions) 2022E
Cash Flow from Operating Activities 400$
Less:
Run-Rate CapEx (90)
CapEx for Clariant Integration (10)
CapEx for IT System Upgrade (15)
Total CapEx (115)
Free Cash Flow 285$
Adjusted EBITDA 635$
Net Debt / Adjusted EBITDA 1.6x
14
DYNEEMA / DISTRIBUTION UPDATES
• Strong performance so far in 2022 in-line
with our modeling
• Acquisition to be finalized as early as
September 1, pending standard
regulatory process and closing conditions
• Encouraging interest thus far from
potential buyers for world-class business
with a strong track record
• Second round bids due in August
DISTRIBUTION
15
PRO FORMA MODELING UPDATE
2022E
($M)
Revenue 5,100$ 415$ 5,515$ (1,635)$ 3,880$
Adjusted EBITDA 635 130 765 (109) 656
EBITDA % 12% 31% 14% 7% 17%
Adj.
https://www.avient.com/sites/default/files/2023-08/AVNT August IR Presentation w NonGAAP Recs%5B40%5D.pdf
Global Compact
• Highlights ESG Performance, including
ratings, awards, and certifications
• Features increased carbon emissions
disclosures, including Climate Change Scenario
Analysis and Scope 3 emissions data
• Outlines Sustainable Supplier Program,
designed to enable supplier evaluation &
collaboration
• Reflects Great Place To Work® culture focused
on safety, employee engagement and
advancing diversity, equity and inclusion
2022 SUSTAINABILITY REPORT
19
Avient Confidential 20
• Virtual presentation to be held
September 20, 2023
• Leadership will be conducting
an investor-focused
presentation around our
sustainable solutions portfolio
• Deep dive into how we enable
customers to achieve their
sustainability goals
SUSTAINABILITY DAY
20
…are Growing at Twice the Rate as
Conventional Products
Sustainably-Branded Products…
STAKEHOLDER INFLUENCE DRIVES DEMAND
Consumers
Are demanding
recyclability and eco-
conscious products
Governments
Are mandating changes
through legislation, taxes,
and regional accords
Brand Owners
Have committed to
ambitious goals to achieve
sustainability metrics
21
AP P EN D IX
24
Performance
Additives
16%
Pigments
12%
TiO2
Dyestuffs
2%
Polyethylene
Nylon
Polypropylene
Styrenic Block
Copolymer
Other Raw
Materials
33%
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
2022 pro forma results for the acquisition of Avient Protective Materials
RAW MATERIAL BASKET
PEER COMPARISONS
AVIENT IS ASSET LIGHT
Capex / Revenue
2023E (%)
Avient Specialty
Other Specialty /
Note: Avient reflects 2023 estimated revenue of $3,280 and estimated run-rate CAPEX of $110M.
26
3 3
4 4
4
5 5
7 7
9
10
FREE CASH FLOW CONVERSION
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/company/sustainability/sustainability-report/metrics/planet-data-and-metrics
Includes estimated full year performance of APM acquisition
** 2019 baseline data revised to account for acquisition pro-forma performance and divestitures
¹Refer to CDP Climate Change Report for finalized Energy/Emissions information at https://www.avient.com/company/sustainability/sustainability-report/reporting/cdp-climate-change-report