https://www.avient.com/sites/default/files/2022-04/Avient Acquisition of Dyneema and Q1 2022 Results_0.pdf
F I RS T Q UART E R 2022 RE S U LT S $123 $136 2021 2022 $0.89 $0.99 2021 2022 Q1 2022 PERFORMANCE (TOTAL COMPANY) 4 $1,162 $1,294 2021 2022 + 11% (+ 14% excluding FX) Adjusted EPS + 11% (+ 15% excluding FX) + 11% (+ 16% excluding FX) (in millions) (in millions) Sales Adjusted Operating Income Q1 2022 SEGMENT PERFORMANCE 5 CAI $609 $650 Sales ($ in millions) SEM Distribution $89 $95 Operating Income + 7% (+ 10% excluding FX) $363 $433 Sales $24 $24 Operating Income + 19% Flat (1) $217 $245 Sales $34 $40 Operating Income + 7% (+ 11% excluding FX) + 13% (+ 17% excluding FX) + 18% (+ 20% excluding FX) Q1 2021 $1,162 $123 Sustainable Solutions 19 8% 7 Healthcare 32 21% 6 Composites (excl.
Morgan • New Senior Secured Term Loan B and new Senior Unsecured Notes • Potential proceeds from sale of Distribution business modeled to pay off 5.25% senior notes due 2023 and Term Loan • Acquisition aligned with Avient’s track record of disciplined capital allocation policy • Existing dividend policy maintained, focus on deleveraging in the near term (1) (1) Pro forma for the acquisition of Dyneema® and potential divestiture of Distribution, including repayment of senior notes due 2023 and Term Loan Cash and Cash Equivalents 595$ Senior Secured Term Loan due 2026 605$ New Senior Secured Term Loan B 500 Total Senior Secured Debt 1,105$ Senior Unsecured Notes due 2025 650$ New Senior Unsecured Notes 740 Total Senior Unsecured Debt 1,390$ Total Debt 2,495$ Net Debt 1,900$ 2022 Pro forma Adjusted EBITDA 660$ Net Debt / Adjusted EBITDA 2.9x Pro Forma Capitalization (2022 estimates, all figures in $M) TWO-YEAR LEVERAGE GOAL 24 3.5x 2.7x 1.7x 2.9x 2.5x 2.2x 2019PF 2020PF 2022E 2022PF 2023E 2024E Dyneema® AcquisitionClariant Color Acquisition (1) Pro forma for the acquisition of the Clariant Color business (2) Pro forma for the acquisition of Dyneema® and potential divestiture of Distribution, including repayment of senior notes due 2023 and Term Loan (1) (1) (2) 25 PRO FORMA MODELING 2022E Pro Forma Pro Forma ($M) w/ Dyneema w/Sale Revenue 5,100$ 415$ 5,515$ (1,775)$ 3,740$ Adjusted EBITDA 635 130 765 (105) 660 EBITDA % 12% 31% 14% 6% 18% Pro Forma EPS (Adjusted) 3.50$ 0.00$ 3.50$ (0.56)$ 2.94$ Pro Forma EPS (excl. amortization) 3.96$ 0.35$ 4.31$ (0.56)$ 3.75$ Leverage (12/31/2022E) Net Debt / Adjusted EBITDA 1.7x 3.5x 2.9x Avient Dyneema Distribution® ® OUR SPECIALTY JOURNEY ACQUISITION HISTORY 27 Commercial Resources(1) Operating Income ($ in millions) Operating Margins 259 360 At Acquisition 2021 $40 $122 At Acquisition 2021 9% 21% At Acquisition 2021 Established Acquisitions (> 7 years) + 39% + 210% + 1200 bps (1) Commercial Resources include associate headcount in R&D / Technical, Marketing and Sales CLARIANT COLOR ACQUISITION 28 $133 $205 2019PF 2021 28 Clariant Color EBITDA Growth Purchase Price Multiple 10.8x 7.0x 6.1x 2019PF 2021 2021 w/ Full Synergies • 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 • $54 million of synergies realized in 2021 • Acquisition completed on July 1, 2020 for $1.45 billion.
Purchase price multiple rapidly declining on strength of business and synergy capture (1) (1) (1) Financial information is pro forma to include a full year of Clariant Color acquisition ($ in millions) 11.9% 16.2% 2019PF 2021 EBITDA Margins (1) SPECIALTY TRANSFORMATION 7% 46% 66% 86% 100% 0% 20% 40% 60% 80% 100% 2005 2010 2015 2021 2022 PF % o f A dj us te d EB IT D A(1 ) JVs Distribution Performance Products & Solutions Specialty (1) Adjusted EBITDA is EBITDA excluding corporate costs and special items (2) Pro forma for the acquisition of Dyneema® and potential divestiture of Distribution (2) 29 12% 18% 16% 15% 15% 14% 14% 28% 28% 26% 25% 22% 21% 19% 16% 12% 9% 9% Av ie nt T od ay Av ie nt P F AV Y PP G KW R FU L R PM C E AL B FM C AS H EC L EM N H XL H U N SC L BN R U N VR Median: 21%Median: 15% 2022 EBITDA MARGINS VS.
https://www.avient.com/sites/default/files/2023-09/SEM Services Capabilities Overview Brochure.pdf
Industrial Design • Research methodologies • Brainstorming/problem solving • Concept sketching • Ergonomic development • 3D CAD modeling • Photo rendering & 3D prototyping • Color, material, & finish selection • Design for manufacturing Part/Tool/Process Design Optimization Prototype Capabilities • Over 10 injection molding machines ranging from 50–550 tons: - Materials sampling and evaluation • Fully automated continuous fiber reinforced thermoplastic (CFRTP) injection-overmolding cell - Prototyping combinations of injection molded discontinuous fiber reinforced thermoplastics with CFRTP inserts • Full suite of auxiliary support equipment including: - Material drying - Water and hot oil thermolators for mold heating - Ultrasonic welding for inserts - Secondary & post operations • 150-ton compression molding presses • Profile extrusion • Co-extrusion film and wire & cable • Over 20 molds at varying geometries to validate structural, application, and functional performance.
Material Data Sets • A number of material characterization data sets are available in .udb, moldex 3D, xChange data cards, and SIPOE format Mold Filling Simulation (see examples below) • Serves to validate part design (e.g., gate location, fill/pack/warp/cool) & material solution • Evaluates component design viability with preferred Avient material solution • Fiber analysis determines fiber orientation and length • Predicts part quality and manufacturability (shrink, warp, weld line location) FILLING PART QUALITYFIBER ORIENTATION Finite Element Analysis (FEA) • Virtually simulates how an application will perform in real-world conditions with a high level of precision • Able to represent a variety of problems, test methods, models and outputs to evaluate the design, process and material combination for validation or optimization • Dynamic - Acceleration - Impact - Break/no break - Transmitted force - Energy absorption • Thermal Mechanical - Temperature Computational Fluid Dynamics (CFD) - Heat path - Dominant heat transfer - Temperature mapping - Coupling with mechanical simulations FEA Simulation Capabilities • Static - Displacement/rotations - Stress and strains - Contact pressure - Reaction forces/moments - Factors of safety • Vibration - Eigen frequencies - Harmonic response ○ Harmonic displacement, acceleration and stress Software Used • Autodesk Moldflow • Digimat • Simulia/Abaqus • MSC Cradle • CAD/CAE - MSC Apex - SolidWorks Failure Mode Effect Analysis (FMEA) Support By leveraging mold filling simulation, multiphysics simulation, and the understanding of the link between design, process and material, we can help inform your decision-making process for product development.
https://www.avient.com/sites/default/files/2023-05/SEM Services Capabilities Overview Brochure.pdf
Industrial Design • Research methodologies • Brainstorming/problem solving • Concept sketching • Ergonomic development • 3D CAD modeling • Photo rendering & 3D prototyping • Color, material, & finish selection • Design for manufacturing Part/Tool/Process Design Optimization Prototype Capabilities • Over 10 injection molding machines ranging from 50–550 tons: - Customer prototype molding - Materials sampling and evaluation • Fully automated continuous fiber reinforced thermoplastic (CFRTP) injection-overmolding cell - Prototyping combinations of injection molded discontinuous fiber reinforced thermoplastics with CFRTP inserts • Full suite of auxiliary support equipment including: - Material drying - Water and hot oil thermolators for mold heating - Ultrasonic welding for inserts - Secondary & post operations • 150-ton compression molding presses • Profile extrusion • Over 20 molds at varying geometries to validate structural, application, and functional performance.
In addition to common environmental simulation or functional performance testing services, Avient can also conduct individualized testing and simulations in order to optimize material formulations, product performance, or design. • Dynamic - Acceleration - Impact - Break/no break - Transmitted force - Energy absorption • Thermal Mechanical - Temperature - Heat bath - Dominant heat transfer - Temperature mapping - Coupling with mechanical simulations ONSITE TECHNICAL SUPPORT The product development process does not end with design and testing.
https://www.avient.com/industries/packaging/beverage-packaging/water
ColorMatrix Joule™ RHB Fast Reheat Dispersions
Best practices for handling and using ColorMatrix™ Joule™ RHB Fast Reheat Dispersions
https://www.avient.com/sites/default/files/2023-10/reSound BIO TPE -Underwire-case study snapshot.pdf
AVIENT SOLUTION COMFORT + BIO DERIVED CONTENT • Easy to process • Comply with skin touch regulations • Pass the washability test at 40℃ for 25 cycles • Heat resistance for 180℃ / 20-second hot press KEY REQUIREMENTS Copyright © 2023, Avient Corporation.
https://www.avient.com/sites/default/files/2025-02/MAXXAM Fan Blower Housing Application Snapshot.pdf
Appliance Manufacturer APPLIANCE MANUFACTURER F A N B L O W E R H O U S I N G • Non-halogen to industry standards • Thermal stability • Good impact properties • Easy to process • Good cost/performance • Replaced halogenated solutions while keeping the required mechanical performance • Delivered solution with V-0 flame performance rating to withstand high-heat environments • Met regulatory standards including RoHS and REACH as well as local Turkish regulations Maxxam NHFR Non-Halogen Flame Retardant Polyolefin Formulation KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2020-07/dynaflex-g-cooler-feet-wagon-wheel-tread.pdf
Dynaflex G - Cooler Feet & Wagon Wheel Tread COOLER MANUFACTURER C O O L E R F E E T & W A G O N W H E E L T R E A D • Abrasion resistance and excellent tear strength • UV and heat stability • Overmoldable to PP or PC • Provided durable TPE materials at target durometers to achieve component-specific performance requirements • Offered rapid response technical support for mold trials and guidance on processing best practices • Delivered consistent material quality globally and with short lead times Dynaflex™ G KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2024-08/Stan-Tone Instrument Panel Case Study Snapshot.pdf
AUTOMOTIVE INTERIORS MANUFACTURER I N S T R U M E N T P A N E L • Consistent and customizable color able to support heat and light shielding • Compliance with automotive industry standards • Provided breadth of high-performance custom color solutions that met specific customer needs • Offered dependable quality and technical support from ideation stages through final production while navigating all regulatory requirements Stan-Tone VC and VCP Vinyl Dispersions KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2024-05/CCG Application Snapshot_Food Tray.pdf
Catering oem CATERING OEM F O O D T R A Y S • FDA approval for food contact • Specific color • Must be able to withstand high heat/sanitization • Offered the specific desired color • Food contact grade • Customizable high-performance solution able to withstand multiple cleaning cycles with detergents • Provided commercial, technical, and operational excellence support Colorant Chromatics PES Green Color- Concentrate KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2021-12/AVNT 2021 Investor Day_0.pdf
• Fostering imagination • Enabling creative exploration • Focus on customers’ sustainability • Driving long-term revenue growth ColorWorks Avient Corporation 21 • Rapid customer response • Immediate color measurement and quotation • Fast track product development to “now” • Specialized labs for fast sample delivery • Optimized formulations leveraging cost effective raw materials C U S T O M E R - F O C U S E D C O L O R F O R M U L A T I O N Avient Corporation 22 InstaColr CycleWorks A D V A N C I N G T H E C I R C U L A R E C O N O M Y • Laboratory mimics real-world circular recycling in a research environment • Conducts chemistry testing to improve plastics recycling for customers • Screening and evaluation of additive and colorant systems during recycling • Collaboration platform for customers and value chain partners Avient Corporation 23 Avient Corporation 24 Sustainable Solutions Michael Garratt and Walter Ripple Our Sustainability Promise As the world’s premier provider of specialized polymer materials, services and solutions, Avient is committed to meeting the needs of the present without compromising future generations’ ability to meet their needs.
Purchase price multiple rapidly declining on strength of business and synergy capture (1) (1) (1) Financial information is pro forma to include a full year of Clariant Color acquisition ($ in millions) 11.9% 16.3% 2019PF 2021E EBITDA Margins (1) 126Avient Corporation Bolt-On Acquisition History Commercial Resources(1) Operating Income ($ in millions) Operating Margins 259 360 At Acquisition 2021E $40 $122 At Acquisition 2021E 9% 21% At Acquisition 2021E Established Acquisitions (> 7 years) + 39% + 205% + 1200 bps (1) Commercial Resources include associate headcount in R&D / Technical, Marketing and Sales 127Avient Corporation We are a specialty formulator AND We are a sustainable solutions company Avient Corporation 128 As a specialty formulator, we don’t require significant capital investment, as compared to the base resin raw material suppliers we purchase from.
Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA Avient reflects 2021 Adjusted EBITDA of $580M and estimated CAPEX of $80M (excludes one-time synergy capture CAPEX of $20M) Source: Peer data per Bloomberg market data as of December 2, 2021 High Free Cash Flow Conversion Avient Specialty Formulators Other Specialty / Chemical Companies Avient Corporation 131 12% 16% 15%+ 20%+ 16% 16% 16% 14% 14% 14% 34% 26% 25% 22% 21% 16% 15% 12% 9% 8% A V N T K W R A V Y P P G F U L R P M G C P C E F M C A S H E M N E C L H U N H X L S C L B N R U N V R EBITDA Margins Avient reflects 2021 Adjusted EBITDA of $580M and guided revenue of $4,750M.