https://www.avient.com/sites/default/files/2023-05/AVNT Q1 2023 Earnings Presentation.pdf
National Defense budget of $842 billion submitted to Congress in Q1 2023 • European NATO members annual defense spend expected to increase by up to 20% Where Avient Wins: Dyneema® is the world’s strongest fiber™ One of the highest strength to weight ratios of any material on Earth Direct relationships with industry leading armor manufacturers Resistant to most chemicals, UV, and moisture to handle any environment Avient Confidential 13 DEFENSE Source: US Department of Defense, defense.gov, NATO13 Source: TRANSPORTATION • Increased EPA regulations requiring improved fuel efficiency, enabled in part by lower-weight vehicles • Automakers preparing for 2/3 of U.S. vehicles to be 100% electric by 2032 Where Avient Wins: Lightweight panels that establish both strength and stiffness resulting in decreased energy usage, lower emissions Long-lasting Color applications to resist UV exposure, temperature fluctuations and exceed the stylistic requirements of global automakers 14 $130 $530 Q2 FY $0.60 $2.40 Q2 FY 2023 GUIDANCE 15 Sales Adjusted EBITDA $845 $3,400 Q2 FY Adjusted EPS (in millions) (in millions) CASH FLOW / LEVERAGE 16 • Maintaining free cash flow and leverage guidance from February earnings call • IT investment to further integrate acquired businesses and capture operational efficiencies • Restructuring actions to streamline operations and improve profitability, primarily in Europe ($ millions) 2023E Cash Flow from Operating Activities 350$ Less: Run-Rate CapEx (110) CapEx for IT System Upgrade (25) CapEx for Restructuring (15) Total CapEx (150) Free Cash Flow 200$ Adjusted EBITDA 530$ Net Debt / Adjusted EBITDA 2.9x LONG-TERM REVENUE GROWTH DRIVERS Growth Drivers Long-Term Growth Rate Sustainable Solutions 8–12% Healthcare 8–10% Composites 10% Asia / LATAM 5% Other (GDP growth) 2–3% Avient 6.5% 17 Sustainable Solutions 32% Asia / LATAM 15% Composites 8% Healthcare 6% Other (GDP Growth) 39% • Virtual presentation to be held September 20, 2023 • The company will be conducting an investor-focused presentation around our sustainability solutions portfolio Avient Confidential 18 SUSTAINABILITY INVESTOR DAY 18 $340M $405M $455M $550M $790M $915M 2016 2017 2018 2019 2020PF** 2021 2022PF*** SUSTAINABILITY FOR A BETTER TOMORROW Revenue From Sustainable Solutions* 2016-2022 ($ in millions) Organic Future Growth Revenue Assumptions From Sustainable Solutions: 8 - 12% 19 *Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”) **2020 is Pro Forma to include full year of the Clariant Color business ***2022 is Pro Forma for the acquisition of Avient Protective Materials and the divestiture of Distribution $1,175M Lightweighting Eco-Conscious Recycle Solutions VOC Reduction Sustainable Infrastructure Human Health & Safety Reduced Energy Use Bio-polymers SUSTAINABILITY NEEDS BY MARKET B&C • Eco-Conscious • Carbon footprint • Resource conservation Healthcare • Carbon footprint • Bio based content • Eco-Conscious Automotive • Light weighting • Recycled Content • VOC reduction Consumer • Recycle Solutions • Light weighting • Carbon Footprint Packaging • Recycle Solutions • Light weighting • Food waste reduction Common Theme: CO2 Emission Goals Increasing Single-Use Plastic Regulation 20 INVESTING IN INNOVATION S U S T A I N A B I L I T Y P O R T F O L I O 21 AP P EN D IX 24 RAW MATERIAL 2022 ANNUAL PURCHASES Performance Additives 16% Pigments 12% TiO2 10% Dyestuffs 2% Polyethylene 11% Nylon 6% Polypropylene 5% Styrenic Block Copolymer 5% Other Raw Materials 33% ~40% hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials • Cost inflation decelerating, particularly for hydrocarbon-based raw materials 2022 pro forma results for the acquisition of Avient Protective Materials SEGMENT DATA U.S. & Canada 40% EMEA 37% Asia 18% Latin America 5% 2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 20% Packaging 24% Industrial 15% Building and Construction 10% Telecommunications 4% Energy 4% Defense 6% END MARKET REVENUE $2,355M $402M $1,300M $272M Sales EBITDA Specialty Engineered Materials Color Additives and Inks $592M$3,653M (1) Transportation 9% Healthcare 8% 26 (1) Total company sales and adjusted EBITDA of $3,653M and $592M, respectively, include intercompany sales eliminations and corporate costs C O L O R , A D D I T I V E S & I N K S 2022 REVENUE | $2 .4 B ILL ION US & Canada 34% EMEA 38% Asia 20% Latin America 8% END MARKET REGION 27 Packaging 34% Consumer 21% Healthcare 8% Industrial 15% Transportation 8% Building & Construction 11% Telecommunications 1% Energy 2% S P E C I A LT Y E N G I N E E R E D M AT E R I A L S 2022 PRO FORMA REVENUE | $1 .3 B ILL ION END MARKET US & Canada 52% EMEA 35% Asia 13% REGION 28 Packaging 5% Consumer 19% Healthcare 8%Industrial 16% Transportation 10% Telecommunications 10% Energy 9% Defense 15% Building & Construction 8% Packaging 32% Consumer 27% Healthcare 8% Industrial 14% Building & Construction 5% Telecommunications 3% Energy 1% Defense 1% Asia (18% of sales) Transportation 9% 2022 PROFORMA AVIENT REGIONAL SALES BY END MARKET Packaging 27% Consumer 14% Healthcare 5% Industrial 17% Building & Construction 10% Energy 5% Defense 8% EMEA (37% of sales)Transportation 11% Packaging 13% Consumer 24% Healthcare 12% Industrial 15% Building & Construction 13% Energy 5% Defense 5% US & Canada (40% of sales) Transportation 7% Packaging 56% Consumer 23% Healthcare 4% Industrial 7% Building & Construction 4% Telecommunications 1% LATAM (5% of sales) Transportation 5% Telecommunications 3% Telecommunications 6% 29 PEER COMPARISONS AVIENT IS ASSET LIGHT Capex / Revenue 2023E (%) Avient Specialty Formulators Other Specialty / Chemical Companies Source: Peer data per Bloomberg as of April 28, 2023 Note: Avient reflects 2023 estimated revenue of $3,400 and estimated run-rate CAPEX of $110M. 31 3 2 3 3 4 4 3 3 5 5 5 6 7 9 A vi en t K W R P P G F U L R P M A V Y F M C H U N H X L C E E C L A S H E M N S C L FREE CASH FLOW CONVERSION Source: Peer data per Bloomberg as of April 28, 2023 Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
Avient Specialty Formulators Other Specialty / Chemical Companies 2023E(%) 32 79 87 83 81 76 73 90 79 77 76 73 69 60 22 A vi en t K W R P P G F U L A V Y R P M F M C C E H X L A S H E C L H U N E M N S C L MULTIPLE EXPANSION Avient Specialty Formulators Other Specialty / Chemical Companies Source: Peer data per Bloomberg as of April 28, 2023 Note: Avient reflects 2023 adjusted EBITDA guidance of $530M and closing share price of $38.51.
https://www.avient.com/sites/default/files/2021-11/avnt-november-investor-meetings.pdf
Develop and implement solutions to end plastic waste while supporting AEPW $1.5B investment in key initiatives. 2030 SUSTAINABILITY TARGETS 27 Sustainalytics 2021 ESG Risk Ranking RANK (1st = lowest risk) PERCENTILE (1st – lowest risk) Chemicals INDUSTRY 75/449 17th Specialty Chemicals SUBINDUSTRY 21/124 17th AVIENT ESG RATINGS ISS November 2021 ESG Scores SCORE (1 = Best, 10 = Worst) Environmental 2 Social 1 Governance 4 28 2021 AVIENT INVESTOR DAY 29 • Investor Day to be held December 9, 2021 in New York, NY • The company will be doing a deep dive into its key long- term growth drivers with a particular focus on sustainable solutions Revenue Growth Drivers Long-Term Growth Rate Sustainable Solutions 8–12% Healthcare 8–10% Composites / 5G 10% Growth in Asia / LATAM 5% Other (GDP growth) 2–3% Avient 6.5% • Senior leadership team will also provide further details on the Clariant Color integration, as well as capital allocation priorities PEER COMPARISONS 30 As a specialty formulator, we don’t require significant capital investment, as compared to the base resin raw material suppliers we purchase from.
Whether an additional line at an existing manufacturing plant, or a new facility in a growing region, we ramp-up quickly and cost-efficiently. 31 Capex / Revenue 2021E (%) AVIENT IS ASSET LIGHT Avient Specialty Formulators Other Chemical/Specialty Companies 2 3 1 2 3 3 3 4 3 3 4 5 5 5 6 9 A vi e nt A vi e nt ( E xc l.
D is t. ) K W R P P G A V Y F U L R P M G C P F M C H X L H U N E C L A S H E M N C E S C L Source: Peer data per Bloomberg market data as of November 8, 2021 Avient reflects 2021 estimated revenue of $4,750M and estimated CAPEX of $80M (excludes one-time synergy capture CAPEX of $20M) Avient Specialty Formulators Other Chemical/Specialty Companies Free Cash Flow Conversion (1) 2021E (%) Being asset light helps us to generate strong free cash flow that is in line with specialty formulators.
https://www.avient.com/sites/default/files/resources/PolyOne%25202014%2520Annual%2520Report.pdf
Group Vice President, Nalco Chemical Company (a manufacturer of specialty chemicals, services and systems) from December 1999 to October 2002.
Global Corporate Account Director, Dow Advanced Materials, The Dow Chemical Company (a global provider of chemicals and plastics) July 2009 to May 2010, Global Strategic Marketing Director, Dow Coating Solutions, The Dow Chemical Company, March 2008 to July 2009.
The S&P Mid Cap Chemicals index includes a broad range of chemical manufacturers.
https://www.avient.com/sites/default/files/2020-09/crtm-panel-product-bulletin-2020.pdf
KEY CHARACTERISTICS Avient CRTM panels offer significant benefits to customers, including: • Superior strength to weight ratio • �Unlimited length capability; widths up to 108" • �Thermal insulation • Ultra-low thermal conductivity • �Customized density, thickness, weight and color • �Vibration damping and acoustic insulation • Chemical and corrosion resistance • Consistent cross-sections and quality PRODUCT BULLETIN Other thicknesses/architectures are available.
https://www.avient.com/sites/default/files/2023-09/Color _ Additive Masterbatches for E_E Application Bulletin_A4.pdf
In this regard “ubiquitous” means that this substance is omnipresent and its occurrence cannot be avoided by any technical, physical or chemical measure.
https://www.avient.com/sites/default/files/2020-07/comptek-catalog.pdf
Multi-use medical and dental products • Aerospace parts • Automotive systems • Fuel and chemical handling equipment • Sensors and pumps • Home appliances Let’s get started!
https://www.avient.com/sites/default/files/2023-03/Artisan Pre-colored Thermoplastics Technical Bulletin.pdf
TECHNICAL BULLETIN Characteristics Artisan™ Nylon Solution Painted Metal Painted Plastic Traditional Molded-in Color Impact Modified Nylon PA Ionomer Alloy Aesthetic Very Good Excellent Excellent Good Very Good Very Good Scratch Appearance Excellent Poor Poor Good Excellent Excellent Scratch & Mar Resistance Very Good Excellent Excellent Poor Very Good Excellent Color Customization Good Excellent Excellent Very Good Good Good Stress Whitening Excellent Fair Fair Poor Excellent Excellent Weatherability Good Excellent Excellent Very Good Good Very Good Temperature Performance Good Excellent Fair Fair Fair Good Corrosion Resistance Excellent Fair Excellent Excellent Excellent Excellent Processability One Step Multi Step Multi Step One Step One Step Complex One Step Total Production Cost $$$ $$$$$ $$$$ $$ $$$ $$$$ Order Quantity Restrictions Some Some Some None More More COMPARISON OF NYLON, METAL, AND PLASTIC Properties Test Method Artisan™ AR6000-0007 HI UV* Gloss Level** Gloss reading at 60 degrees 80-93 Molding Shrinkage – Across Flow ASTM D955 0.009 to 0.013 in/in Tensile Strength (Yield) ASTM D638 7300 psi Tensile Strength (Break) ASTM D638 5300 psi Tensile Elongation (Yield) ASTM D638 6.0% Flexural Modulus ASTM D790 270500 psi Flexural Strength (Yield) ASTM D790 9950 psi Notched Izod Impact ASTM D256 -4°F (-20°C) 5 ft-lb/in 73°F (23°C) 11 ft-lb/in Unnotched Izod Impact ASTM D256 -4°F (-20°C) 29 ft-lb/in 73°F (23°C) 30 ft-lb/in Color & Aesthetics*** Green, medium blue, dark blue, red, orange, white, gray, black Color customization available based on specific needs KEY PROPERTIES Features: high-gloss finish, UV stability, scratch resistance, chemical/corrosion resistance, cold temperature impact resistance, heat resistance * Reflects average of several colors, properties shift slightly depending on color ** Gloss level varies based on tooling temperature *** UV data available upon request Copyright © 2023, Avient Corporation.
https://www.avient.com/sites/default/files/2020-10/wire-cable-1-pager.pdf
APPLICATIONS: Power cables, Ethernet category cables, industrial cables, solar installation cables, coaxial cables, fiber optics, hybrid cables SYNCURE™ Cross-Linked Polyethylene for Power Cable Insulation • Resistant to heat, oil, creep and abrasion • Fast extrusion speeds • UL 44 & UL 4703 flame performance • UL/CSA bulletins MAXXAM™ FR W&C Flame Retardant Polypropylene for Category Cable Insulation and Cross-Webs • Alternative to FEP • Low dielectric • Thin wall extrusion capabilities • UL 444 & plenum yellow card flame performance FIRECON™ Flame Retardant Chlorinated Polyethylene for Industrial Cable Jackets • Resistance to harsh environments • Low temperature properties • UV resistance • UL 44 flame performance ECCOH™ LSFOH Low Smoke and Fume, Non-Halogen for Insulation and Jackets • Low smoke and toxicity • Improved fire safety • Resistance to chemicals • UL44 and CPR flame performance ADDITIONAL SOLUTIONS MAXXAM™ SY Foamed Polypropylene for Coaxial Cable Insulation SYNPRENE™ Flame Retardant Thermoplastic Elastomers POLYMIX™ Customer Proprietary Formulations For more information, please visit avient.com or call +1.844.4AVIENT (+1.844.428.4368). www.avient.com Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2020-09/stat-tech-for-adas-application-bulletin.pdf
STAT-TECH AS-10CF/000 BLACK STAT-TECH ST3200-0010 NH FR BLACK STAT-TECH ST9620-0020 ES RED STAT-TECH NN-40CF/000 NH FRV0 NATURAL Applications Sensor, Camera & ECU Housings Sensor, Camera & ECU Housings Sensor, Camera & ECU Housings Sensor, Camera & ECU Housings Defining Features Antistatic Conductive EMI Shielding Flame Retardant EMI Shielding Good Chemical Resistance High Stiffness Filler/ Reinforcement Carbon Fiber, 10% by Wt — Nickel-Coated Carbon Fiber Carbon Fiber, 40% by Wt Surface Resistivity 1.0E+2 to 1.0E+6 ohms 1.5E+4 ohms 1.0E+2 to 1.0E+4 ohms 1.0E+2 to 1.0E+5 ohms Shielding Effectiveness (10GHz, 1/8" thickness) — — 61 dB 70 dB HOW STAT-TECH MATERIAL MAKES THE DIFFERENCE IN AUTOMOTIVE ADAS SENSORS, CAMERAS AND ECUS Protection from static buildup – Stat-Tech material reduces static buildup with surface resistivity between 1.0E+2 ohms and 1.0E+6 ohms, minimizing sparks from damaging nearby electrical components, especially those near fuel storage.
https://www.avient.com/sites/default/files/2020-10/2019-avient-sustainability-report.pdf
Many other countries are following suit on the EU REACH chemicals regulation, and so are we.
HOME | Contents | Message from the CEO | Who We Are | People | Products | Planet | Performance | Goals & Metrics | Indices Sustainability Report | 2019 59 https://ec.europa.eu/environment/chemicals/reach/reach_en.htm https://ec.europa.eu/environment/chemicals/reach/reach_en.htm https://ec.europa.eu/environment/chemicals/reach/reach_en.htm Product Excellence Avient subscribes to the ISO9001 standard for Quality Management.
Many other countries are following suit on the EU REACH chemicals regulation, and so are we.