https://www.avient.com/sites/default/files/resources/Innovation_Day_-_May_2014_0.pdf
Richardson Executive Vice President, Chief Financial Officer PolyOne Corporation Page 15 Track Record of Accelerated Growth Total Revenue Adjusted EPS Adjusted EBITDA $2,061 $2,506 $2,709 $2,861 $3,771 2009 2010 2011 2012 2013 ($ in millions, except EPS ) $105 $179 $202 $255 $344 2009 2010 2011 2012 2013 $0.13 $0.68 $0.82 $1.00 $1.31 2009 2010 2011 2012 2013 PolyOne Corporation Page 16 $0.31 $0.44 $0.20 $0.30 $0.40 Q1 2013 Q1 2014 Adjusted EPS $42 $60 $20 $40 $60 Q1 2013 Q1 2014 Specialty Operating Income ($ millions) Q1 2014 Financial Highlights Growth momentum accelerates driven by specialty platform Specialty segments and Distribution achieve record results All segments increase operating income compared to prior year Revenue grew 25% versus Q1 2013 +43% +42% $57 $79 $30 $60 $90 Q1 2013 Q1 2014 Adjusted Operating Income ($ millions) +39% PolyOne Corporation Page 17 Commitment to Operational Excellence 81% 96% 2006 2013 16.2% 10.9% 2006 2013 On-Time Delivery Working Capital % of Sales 5.0% 31.0% 2006 2013 Percent of Associates Trained in LSS Three consecutive years – CFO Magazine Best Working Capital Management Program in the chemical industry World’s Best Business Process Excellence Program in 2012* 95 certified Black Belts 211 certified Green Belts 422 Project Leaders World’s Best “Start-up Program” for Lean Six Sigma Deployment in 2009* *Both awards received from International Quality and Productivity Center PolyOne Corporation Page 18 Debt Maturities & Pension Funding – 3/31/14 Net Debt / EBITDA* = 1.9x $48 $317 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Debt Maturities As of March 31, 2014 ($ millions) Coupon Rates: 7.500% 7.375% 5.250% *TTM 12/31/2013 ** includes US-qualified pension plans only 60% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2014 Pension Funding** As of March 31, 2014 PolyOne Corporation Page 19 Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return $0.16 $0.20 $0.24 $0.32 $0.10 $0.20 $0.30 $0.40 2011 2012 2013 2014 Annual Dividend Expanding our sales, marketing, and technical capabilities Targets that expand our: • Specialty offerings • End market presence • Geographic footprint • Operating Margin Synergy opportunities Adjacent material solutions Repurchased 1.4 million shares in Q1 2014 Repurchased 6.4 million shares since April 2013 13.6 million shares are available for repurchase under the current authorization Organic Growth Acquisitions Share Repurchases Dividends Investing in operational and LSS initiatives (including synergy capture) Manufacturing alignment PolyOne Corporation Page 20 3.07 3.05 1.81 1.45 1.82 1.54 0.85 3.15 1.17 1.69 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 0.91 PolyOne Valuation Aspirations PEG Ratio Comparison Represents $38 of share price upside Avg = 1.96 PolyOne Corporation Page 21 Innovating for the Future Dr.
Patterson President and Chief Executive Officer PolyOne Corporation Page 27 Well Positioned for Revenue Growth Addressable Market by Platform $540 $215 $120 $40 $260 $525 ($ millions) Design/Service Sustainable Solutions Surface Modification Lightweighting Thermal Control Flame Retardancy $1.0 - $2.0 Billion of revenue generated from new products in 5 years Gross margin on new products exceed current gross margin by at least 10 percentage points World class vitality index of ≥ 35% 2018 PolyOne Corporation Page 28 Megatrends Aligned with Key End Markets Decreasing Dependence on Fossil Fuels Protecting the Environment Improving Health and Wellness Megatrend End Markets Globalizing and Localizing Health & Wellness Transportation Packaging Consumer PolyOne Corporation Page 29 2006 2013 Revenue ($ millions) Health and Wellness Evolution General purpose tubing TPE applications from GLS Specialty tubing Ergonomic enhancements Pre-certified biocompatible colorants Highly sophisticated catheter and drug delivery components Chemical and heat sterilizable materials Authentication and protection technologies Addressing wellness, prevention, diagnostic and therapy changes in healthcare setting Healthcare packaging solutions 2006 2015 & Beyond $416 $105 PolyOne Corporation Page 30 Transportation Evolution General purpose formulations (bumpers, roof racks) Long fiber for lightweighting Thermal management for LED lighting Thermoset composite pultrusions Conductive polymers for EMI shielding Formulations for aerospace interiors Thermoplastic composites High temperature formulations for aerospace Expand 3D printing capabilities 2006 2015 & Beyond 2006 2013 Revenue ($ millions) $709 $315 PolyOne Corporation Page 31 Packaging Evolution Masterbatch colors and PVC packaging materials TPEs to enhance brand appeal and consumer functionality Liquid color and additive technologies to extend shelf life, preserve taste and differentiate brands Leveraging color, additives and sheet technology for healthcare and consumer packaging solutions 2006 2015 & Beyond 2006 2013 Revenue ($ millions) $612 $260 PolyOne Corporation Page 32 Consumer Evolution Commodity plastic and masterbatch color solutions Engineered materials to enhance customer appeal through visual and performance improvements Formulated metal- to-polymer conversion to enhance performance and reduce manufacturing costs Biopolymers & composite materials leveraging unique color technology to build brand identity 2006 2015 & Beyond 2006 2013 Revenue ($ millions) $394 $228 PolyOne Corporation Page 33 Interactive Display Introduction PolyOne Corporation Page 34 Interactive Displays INNOVATION DISCUSSION LEADER TECHNOLOGIES MARKETS Polycast™ Bullet Resistant Sheet Aerospace GlasArmor™ Ballistic Resistant Panels Security reFlex™ Bio-Based Plasticizer Solutions Wilflex™ Oasis Hydrate InVisiO℠ Color Inspiration Forecast In-Store Audits OnColor™ Portfolio Light Weighting Thermal Management Corrosion Resistance Design Flexibility Sustainability Global Supply Chain Ergonomics and Aesthetics Consumer Appeal 9) Consumer Electronics Solutions Walter Ripple General Manager GLS Personal Electronics Wearable Electronics Hand Held Devices Portable Audio 7) Metal Replacement Technology Kurt Schuering Vice President Global Key Account Management Aerospace Transportation Electrical & Electronics Sporting and Shooting 8) Medical Device Solutions Dr.
Patterson President and Chief Executive Officer PolyOne Corporation Page 36 PolyOne Core Values Innovation Collaboration Excellence PolyOne Corporation Page 37 Innovation Drives Earnings Growth $20 $53 2006 2013 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* *Percentage of Specialty Platform revenue from products introduced in last five years 14.3% 30.7% 2006 2013 Specialty Platform Gross Margin % 19.5% 43.0% 2006 2013 PolyOne Corporation Page 38 Formula for Success Innovation Market Beating Performance Excellence in Execution PolyOne Corporation Page 39 Track Record of Successful Integrations and Rapid Operating Income Growth $12 $44 2007 2013 $22 $30 2012 2013 $24 $49 2012 2013 GLS ColorMatrix Spartech OI in $ millions PolyOne Corporation Page 40 2015 and Beyond Innovation will drive the next stage in our remarkable transformation Deliver on 2015 goals Expand Specialty offerings and possibilities Identified as a truly global, specialty chemical company Market Potential Exceeds $40 Billion PolyOne Corporation Page 41 Driving Toward Premier Profitability EBIT Margins for top tier companies Victrex 42% Sigma Aldrich 18% FMC 25% IFF 18% Eastman 17% Hexcel 16% 16% Rockwood Holdings Celanese 14% 7% EBIT Margin – 2013 Albemarle 24% Ecolab 13% PolyOne Corporation Page 42 Bright Future & High Aspirations – The Next Seven Years • % OP Income from Specialty - 5% • Market Cap - $500 Million • Revenue - $2.6 Billion • Commodity Peers • Specialty ROS - 1.5% • % OP Income from Specialty - 62% • Market Cap - $3.5 Billion • Revenue - $3.7 Billion • Specialty ROS - 9.4% • % OP Income from Specialty - 80 to 90% • Market Cap - $12 to $18 Billion • Revenue - $8 to $10 Billion • Specialty Peers • Specialty ROS - ≥ 20% 2000 – 2006 2007 – 2013 2014 – 2020 PolyOne Corporation Page 43 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
https://www.avient.com/sites/default/files/resources/Gabelli%2520Conf%2520-%2520POL%2520IR%2520Presentation%2520wNon%2520GAAP%2520Reconciliation%252003%252026%252015.pdf
PolyOne Corporation Page 1 PolyOne Investor Presentation Gabelli Specialty Chemicals Conference March 2015 PolyOne Corporation Page 2 Forward-Looking Statements In this presentation, statements that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
Strong performance demonstrates that our strategy and execution are working Megatrends and emerging opportunities align with our strengths Innovation and services provide differentiation, incremental pricing power, and competitive advantage Strong and proven management team driving growth and performance Addressable market exceeds $40 billion PolyOne Corporation Page 17 Appendix PolyOne Corporation Page 18 +25% $262 $320 $200 $275 $350 2013 2014 Adjusted Operating Income (in millions) +22% 2014 Financial Highlights All of our segments delivered both operating income and margin expansion during the year Our specialty businesses achieved record levels of profits and profitability this year Achieved 21st consecutive quarter, or over five years, of strong, double-digit adjusted EPS growth +37% $1.31 $1.80 $1.00 $1.50 $2.00 2013 2014 Adjusted EPS $195 $242 $150 $200 $250 2013 2014 Specialty Operating Income (in millions) PolyOne Corporation Page 19 Appliances 2% Building & Construction 12% Consumer 7% Electrical & Electronics 1% Healthcare 6% Industrial 14% Packaging 31% Textiles 7% Transportation 8% Wire & Cable 12% 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 12-16% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Operating Income % of Sales At a Glance Global Color, Additives and Inks 2014 Revenues: $0.9 Billion Solutions Expanding Profits 2014 Revenue by Industry Segment 14.7% Target United States 44% Europe 36% Canada 2% Asia 12% Latin America 6% PolyOne Corporation Page 20 Appliances 4% Building & Construction 3% Consumer 18% Electrical & Electronics 16% Healthcare 12% Industrial 8% Packaging 5% Transportation 20% Wire & Cable 12% At a Glance Global Specialty Engineered Materials 2014 Revenues: $0.6 Billion Solutions 2014 Revenue by Industry Segment Expanding Profits 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 12-16% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Operating Income % of Sales Target 12.1% United States 44% Europe 33% Canada 2% Asia 19% Latin America 2% PolyOne Corporation Page 21 Appliances 2% Building & Construction 8% Consumer 5% Healthcare 6% Industrial 23% Packaging 27% Transportation 30% United States 96% Canada 4% At a Glance Designed Structures and Solutions Solutions 2014 Revenues: $0.6 Billion Expanding Profits 2014 Revenue by Industry Segment 1.4% 5.6% 7.3% 8-10% 2012 2013 2014 2015 Operating Income % of Sales Target PolyOne Corporation Page 22 Appliances 8% Building & Construction 33% Consumer 5% Electrical & Electronics 3% Healthcare 1% Industrial 11% Packaging 5% Transportation 18% Wire & Cable 16% 5.5% 6.9% 3.8% 3.6% 5.5% 4.3% 6.3% 7.2% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Operating Income % of Sales At a Glance Performance Products and Solutions Solutions Expanding Profits 2014 Revenues: $0.8 Billion 9-12% Target 2014 Revenue by Industry Segment 2015 7.7% United States 80% Canada 14% Asia 2% Latin America 4% PolyOne Corporation Page 23 Appliances 6% Building & Construction 5% Consumer 13% Electrical & Electronics 6% Healthcare 23% Industrial 15% Packaging 4% Transportation 25% Wire & Cable 3% 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% 6.4% 5.9% 6 - 7.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Operating Income % of Sales 15% 52% 2006 2014 At a Glance Distribution *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period Key Suppliers 2014 Revenues: $1.1 Billion ROIC* Expanding Profits 6.1% Target http://www.polyone.com/Pages/VariationRoot.aspx PolyOne Corporation Page 24 2 lbs Plastic = 3 lbs aluminum or 8 lbs steel or 27 lbs glass 33% less material by weight than aluminum 75% less material by weight than steel 93% less material by weight than glass Requires 91% less energy to recycle a pound of plastic versus a pound of paper Source: SPI: Sustainability and the Plastics Industry Plastics: Key to Future Sustainable Development PolyOne Corporation Page 25 Commitment to Operational Excellence 81% 93% 2006 2014 16.2% 9.9% 2006 2014 On-Time Delivery Working Capital % of Sales 5% 43% 2006 2014 Percent of Associates Trained in LSS Four consecutive years – CFO Magazine Best Working Capital Management in the chemical industry World’s Best Business Process Excellence Program in 2012* 103 trained Black Belts 247 trained Green Belts 127 trained Kaizen Leaders World’s Best Start-up Program for Lean Six Sigma Deployment in 2009* *Both awards received from International Quality and Productivity Center PolyOne Corporation Page 26 Prototype Frame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 4 11 5 10 6 9 3 4 2 15 9 1 10 4 Breakthrough Platform Derivative A Rich Pipeline of Opportunity Number of Projects 25 14 19 17 18 93 Addressable Market ($ millions) TBD TBD $800 $450 $450 $1,700 PolyOne Corporation Page 27 Application Examples PolyOne Corporation Page 28 $1.5 billion attractive, growing market Additives improve performance and reduce cost through light-weighting, reduced waste, faster cycle times, and extended shelf life of finished product Aligned with megatrend of protecting the environment: Sustainability benefits include lower package weight and improved recyclability of package at end of use Market Opportunity Leading Global Supplier of Additives In Fast Growing PET Market Shelf-life extension Greater product consistency Recyclability and reduced carbon footprint Color and Special Effects Weight reduction Enhanced product aesthetics High heat resistance 4% 4% 8% 9% 9% 10% 11% 14% Western Europe North America South America MEA Easter Europe Asia Pacific China India PET 2008-13P CAGR PET Bottling Technology PolyOne Corporation Page 29 • Includes formulation and consultative services to assist manufacturers and brand owners in positively identifying their finished goods • Protects brand equity & consumer welfare • Reduces exposure to unwarranted recall expenses • Secures supply chain integrity – support for safe expansion into new geographies Authentication Technology PolyOne Corporation Page 30 • Color harmonization across 15 unique color-and-polymer combinations • Eliminated need for multiple pre- colored materials • Reduced Land Rover’s working capital Range Rover Evoque Interior PolyOne Corporation Page 31 • Reduced health and environmental impact • System cost reduction • Radiation-shielding performance • Parts consolidation • Design freedom CT Scanner PolyOne Corporation Page 32 Metal Replacement Solutions • Replaces metal in LED lighting • Extends LED durability and life span eliminating hot spots • Greater design flexibility with fewer parts • Weight reduction • Simplifies manufacturing and lowers total production cost PolyOne Corporation Page 33 Next Generation Solar Charger • Ginkgo Solar Tree charger utilizing our unique reSound™ material • reSound™ is a durable material consisting of 50% bio-derived plastic and 50% traditional petroleum-based plastic • Use of reSound™ reduced the carbon footprint for this product by 35% • reSound™ Is classified as a PolyOne Sustainable SolutionSM PolyOne Sustainable SolutionSM PolyOne Corporation Page 34 High-Barrier Packaging Containers • Capability to extrude up to 13 layers • Strong oxygen and moisture vapor transmission protection • Can be made symmetrical or asymmetrical to meet customized needs of broad variety of applications • Barrier protection and superior organoleptic properties PolyOne Corporation Page 35 Aerospace Applications • Leading provider of specialty materials for the aerospace industry • Typical applications Mil-spec aircraft windows, canopies, windscreens, instrument panels, wingtip lenses Interior – gallery furnishings, tray tables, arm rests, trim strips, joint/edge coverings • Benefits: High impact strength Resistant to UV rays Flame and smoke compliance Easy to clean with aggressive cleaners; anti-microbial grades available Range of sizes, thicknesses, colors, etc. 1 Schedule I Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with U.S.
Gabelli Conf - POL IR Presentation ��PolyOne Investor Presentation�Gabelli Specialty Chemicals Conference�March 2015�� Forward-Looking Statements Use of Non-GAAP Measures PolyOne Commodity to Specialty Transformation PolyOne�At A Glance Mix Shift Highlights Specialty Transformation Confirmation of Our Strategy Strategy and Execution Drive Results Proof of Performance & 2015 Goals Continuing Earnings Growth Innovation Drives Earnings Growth Megatrends Aligned with Key End Markets Debt Maturities & Pension Funding – 12/31/14 Free Cash Flow and Strong Balance Sheet �Fund Investment / Shareholder Return PolyOne Core Values Why Invest In PolyOne?
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 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 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 Formulators Other Specialty / Chemical Companies Source: Peer data per Bloomberg as of August 17, 2023 Note: Avient reflects 2023 estimated revenue of $3,280 and estimated run-rate CAPEX of $110M. 26 3 2 3 3 4 4 3 4 5 5 7 7 9 10 A vi en t K W R P P G F U L A V Y R P M F M C H U N C E E C L A S H H X L E M N S C L FREE CASH FLOW CONVERSION Source: Peer data per Bloomberg as of August 17, 2023 Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
Avient reflects 2023 adjusted EBITDA guidance of $525M and estimated run-rate CAPEX of $110M. 2023E (%) 27 79 89 83 83 78 75 90 81 76 72 68 63 53 11 A vi en t K W R F U L P P G A V Y R P M F M C C E E C L A S H H X L H U N E M N S C L Avient Specialty Formulators Other Specialty / Chemical Companies MULTIPLE EXPANSION Source: Peer data per Bloomberg as of August 17, 2023 Note: Avient reflects 2023 adjusted EBITDA guidance of $525M and closing share price of $37.07.
Avient 2011 and 2018 valuations reflect trailing 12 months EBITDA at December 31 of the respective years. 28 EV / 2023E EBITDA Historic Multiple 6.5 8.3 9.5 13.8 12.7 12.6 11.3 8.7 18.6 16.5 10.1 10.0 9.7 9.5 9.4 8.7 A vi en t (2 01 1) A vi en t (2 01 8) A vi en t (2 02 3) R P M P P G A V Y K W R F U L E C L H X L F M C A S H S C L H U N C E E M N Avient Specialty Formulators Other Specialty / Chemical Companies 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% 30 (1) Total company sales and adjusted EBITDA of $3,653M and $592M, respectively, include intercompany sales eliminations and corporate costs 2022 REVENUE | $2 .4 B ILL ION US & Canada 34% EMEA 38% Asia 20% Latin America 8% END MARKET REGION 31 Packaging 34% Consumer 21% Healthcare 8% Industrial 15% Transportation 8% Building & Construction 11% Telecommunications 1% Energy 2% COLOR, ADDITIVES & INKS 2022 PRO FORMA REVENUE | $1 .3 B ILL ION US & Canada 52% EMEA 35% Asia 13% 32 Packaging 5% Consumer 19% Healthcare 8%Industrial 16% Transportation 10% Telecommunications 10% Energy 9% Defense 15% Building & Construction 8% END MARKET REGION SPECIALTY ENGINEERED MATERIALS 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 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% 33 BY END MARKET Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special items, to assess performance and facilitate comparability of results.
https://www.avient.com/sites/default/files/2023-11/AVNT November IR Presentation.pdf
PRIOR YEAR $790 $710 2022 2023 $107 $112 2022 2023 Sales Adjusted EBITDA (in millions) $0.42 $0.47 2022 PF 2023 Adjusted EPS (in millions) - 10% + 5% + 12% Sales Adjusted EBITDA Adjusted EPS 16 $112 $500 Q4 FY $0.47 $2.30 Q4 FY Q4 AND FULL YEAR 2023 GUIDANCE $710 $3,130 Q4 FY Sales Adjusted EBITDA Adjusted EPS 17 (in millions) (in millions) Guidance: Free Cash Flow $180 $180 Prior Guidance Guidance FREE CASH FLOW & INCREASED DIVIDEND 13th Consecutive Dividend Increase 0.16 0.26 0.42 0.58 0.79 0.85 0.99 1.03 2011 2013 2015 2017 2019 2021 2023 2024 18 S U S TAI NABI L I T Y DAY RE CAP SUSTAINABILITY AS A GROWTH DRIVERLONG-TERM REVENUE GROWTH DRIVERS 60%+ Key Growth Drivers Sustainable Solutions Composites, Healthcare, Asia / LATAM Overlap Other (GDP Growth) Total Company Revenue Growth Drivers Long-Term Growth Rate Sustainable Solutions 8–12% Composites 8–10% Healthcare 8–10% Asia / LATAM 5% Other (GDP growth) 0–2% Avient 6% 20 SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH 8-12% Long Term Growth 50 90 2022 2030 Medical Plastics Market Size (in $Billions) 2020 2030 Recycled Plastics Virgin Plastics Growing Demand for Recycled Content Avient Sustainable Solutions 18 46 2023 2032 Global Offshore Annual Wind Installations (in Gigawatts) Sources: McKinsey, Bloomberg, Grand View Research SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH 21 • Transformative acquisitions combined with divestitures of more cyclical businesses have improved margins over 400 bps since 2018 • 20% long-term margin goal to be driven by key growth drivers, with sustainable solutions playing a meaningful role 5.4% 11.5% 16.0% 2006 2018 2023E Recovery Growth Drivers Strategic Objective 20%+ +1%+ +3%+ ADJUSTED EBITDA MARGIN EXPANSION 22 • 6% annualized long-term sales growth leveraging sustainable solutions, composites, healthcare, and emerging regions • Expand EBITDA margins to 20% • Deliver annual EBITDA and EPS growth of 10% and 15% • Maintain asset-light, 80% free cash flow conversion profile and be valued as a specialty formulator • Continue fostering our Great Place to Work® culture CREATING A WORLD-CLASS SUSTAINABLE ORGANIZATION 23 PEER COMPARISONS AVIENT IS ASSET LIGHT Capex / Revenue 2023E (%) Avient Specialty Formulators Other Specialty / Chemical Companies Source: Peer data per Bloomberg as of October 27, 2023 Note: Avient reflects 2023 estimated revenue of $3,130 and estimated run-rate CAPEX of $110M. 26 3.5 1.8 2.7 3.0 3.4 3.7 2.8 3.7 4.6 5.0 6.9 7.0 8.6 11.1 Av ie nt KW R FU L PP G AV Y R PM FM C H U N C E EC L AS H H XL EM N SC L FREE CASH FLOW CONVERSION Source: Peer data per Bloomberg as of October 27, 2023 Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
Avient reflects 2023 adjusted EBITDA guidance of $500M and estimated run-rate CAPEX of $110M. 2023E (%) 27 78 89 84 82 80 77 88 81 76 70 69 60 54 (6) Av ie nt KW R FU L PP G AV Y R PM FM C C E EC L AS H H XL H U N EM N SC L Avient Specialty Formulators Other Specialty / Chemical Companies MULTIPLE EXPANSION Source: Peer data per Bloomberg as of October 27, 2023 Note: Avient reflects 2023 adjusted EBITDA guidance of $500M and closing share price of $31.18.
Avient 2011, 2018 and 2021 multiples reflect trailing 12 months EBITDA at December 31. 28 EV / 2023E EBITDA 6.5 8.5 11.0 8.9 12.0 11.9 10.9 9.9 8.2 16.3 13.8 11.9 9.6 9.5 9.5 9.2 7.7 20 11 20 18 20 21 O ct 20 23 AV Y R PM PP G KW R FU L EC L H XL SC L AS H FM C C E H U N EM N Avient Historic Multiple Avient Specialty Formulators Other Specialty / Chemical Companies AP P E N DI X 30 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 2022 pro forma results for the acquisition of Avient Protective Materials RAW MATERIAL BASKET 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% 32 (1) Total company sales and adjusted EBITDA of $3,653M and $592M, respectively, include intercompany sales eliminations and corporate costs 2022 REVENUE | $2 .4 BILLION US & Canada 34% EMEA 38% Asia 20% Latin America 8% END MARKET REGION 33 Packaging 34% Consumer 21% Healthcare 8% Industrial 15% Transportation 8% Building & Construction 11% Telecommunications 1% Energy 2% COLOR, ADDITIVES & INKS 2022 PRO FORMA REVENUE | $1 .3 BILLION US & Canada 52% EMEA 35% Asia 13% 34 Packaging 5% Consumer 19% Healthcare 8%Industrial 16% Transportation 10% Telecommunications 10% Energy 9% Defense 15% Building & Construction 8% END MARKET REGION SPECIALTY ENGINEERED MATERIALS 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 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% 35 BY END MARKET Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special items, to assess performance and facilitate comparability of results.
https://www.avient.com/sites/default/files/2022-03/AVNT Mar 2022 Presentation.pdf
Whether an additional line at an existing manufacturing plant, or a new facility in a growing region, we ramp-up quickly and cost-efficiently. 30 Capex / Revenue 2022E (%) AVIENT IS ASSET LIGHT Avient Specialty Formulators Other Chemical/Specialty Companies 2 3 2 2 3 3 4 3 3 5 5 5 7 7 7 A vi e nt A vi e nt ( E xc l.
Avient reflects 2022 estimated revenue of $5,100M and estimated CAPEX of $90M (excludes IT system upgrade of $25M and synergy capture CAPEX of $20M) Avient Specialty Formulators Other Chemical/Specialty Companies Free Cash Flow Conversion (1) 2022E (%) Being asset light helps us to generate strong free cash flow that is in line with specialty formulators.
OUR VALUATION VERSUS PEERS Avient Specialty Formulators Other Chemical/Specialty Companies 5.4 8.5 10.1 10.0 15.7 15.0 14.2 12.7 10.2 25.0 19.7 17.7 13.2 12.3 10.0 9.9 8.9 8.5 8.3 6.6 A vi en t (2 01 1) A vi en t (2 01 6) A vi en t (2 02 1) A vi en t (T o da y) R P M K W R P P G A V Y F U L A L B E C L H X L A S H F M C B N R E M N U N V R C E S C L H U N Historic Multiple SUMMARY: WHY INVEST IN AVIENT?
https://www.avient.com/sites/default/files/2021-04/avient-q4-earnings-and-2021-outlook-website.pdf
Whether an additional line at an existing manufacturing plant, or a new facility in a growing region, we ramp-up quickly and cost-efficiently. 22 Capex / Revenue 2021E (%) AVIENT IS ASSET LIGHT Avient Specialty Formulators Other Chemical/Specialty Companies 2 3 2 2 2 3 3 6 2 3 4 4 5 5 5 6 6 6 7 9 25 A vi en t A vi en t (E xc l.
D is t. ) R P M P P G K W R F U L A V Y G C P IF F F M C H X L H U N E M N F O E E C L K R A S C L A S H C E G R A A LB Median: 5%Median: 3% Source: Peer data per Bloomberg market data as of February 5, 2021 Avient reflects 2021 estimated revenue of $4,100M and excludes one-time synergy capture CAPEX ($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.
With the Clariant Masterbatch acquisition and divestment of the PP&S business, our exposure is now concentrated in less-cyclical and high-growth markets, with increased geographic diversification and a more specialized portfolio that can significantly expand EBITDA margins. 24 Avient reflects 2021 estimated EBITDA of $510M OUR VALUATION VERSUS PEERS Avient Specialty Formulators Other Chemical/Specialty Companies 9.5 21.1 13.2 13.2 12.0 12.0 9.7 25.2 23.1 14.7 13.5 12.9 11.0 11.0 11.0 10.2 9.6 9.3 9.3 9.1 8.6 8.3 A vi en t K W R A V Y R P M G C P P P G F U L A L B E C L H X L IF F F M C G R A B N R F O E A S H C E S C L U N V R E M N H U N K R A Median: 11.0xMedian: 12.6x SUMMARY: WHY INVEST IN AVIENT?
https://www.avient.com/sites/default/files/2023-02/AVNT Q4 2022 Earnings Presentation.pdf
$600 $592 2021 2022 $3.02 $3.04 2021 2022 FULL YEAR 2022 PERFORMANCE (TOTAL COMPANY PRO FORMA) 15 Sales Adjusted EBITDA $3,712 $3,653 2021 2022 -2% Adjusted EPS -1% + 1% (in millions) (in millions) (+4% excluding FX) (+5% excluding FX) (+9% excluding FX) FULL YEAR 2022 SEGMENT PERFORMANCE 16 CAI $2,402 $2,355 Sales ($ in millions) $409 $402 EBITDA SEM Pro Forma $1,308 $1,300 Sales $278 $272 EBITDA (+4% excluding FX) - 2% -1% (+5% excluding FX) - 2% (+4% excluding FX) - 2% (+2% excluding FX) PRO FORMA FULL YEAR EPS BRIDGE 17 Pro Forma 2021 Adjusted EPS 3.02$ Foreign Currency (0.23) Russia Import Sales (0.07) Outdoor High Performance (0.13) Color, Additives and Inks 0.18 Specialty Engineered Materials 0.24 Corporate Costs / Other 0.03 Pro Forma 2022 Adjusted EPS 3.04$ FULL YEAR EBITDA BRIDGE (PRO FORMA TOTAL COMPANY) 18 $ millions CAI: Price / Mix 247 Inflation (176) SEM: Price / Mix 121 Inflation (77) Net Price Benefit 115 Wage and Energy Inflation (47) Clariant Color Integration Synergies 23 Incentives, Other Employee Costs 43 FX (34) Full Year 2022 $592 Adjusted EBITDA Full Year 2021 $ 600 Demand (99) Russia Import Sales (9) • Demand primarily impacted by China lockdowns, 4th quarter industrywide destocking and declining consumer sentiment • Pricing outpaced inflation of raw materials, wages and energy 2023 G U IDA N CE $125 $530 Q1 FY $0.55 $2.40 Q1 FY 2023 GUIDANCE 20 Sales Adjusted EBITDA $845 $3,450 Q1 FY Adjusted EPS (in millions) (in millions) CASH FLOW / BALANCE SHEET 21 • IT investment to further integrate acquired businesses and capture operational efficiencies • Restructuring actions to streamline operations and improve profitability, primarily in Europe ($ 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 K E Y G R O W T H D R I V E R S A N D T R A N S F O R M E D P O R T F O L I O GROWTH DRIVERS: PROVEN SUCCESS 23 (1) Pro forma for the acquisition of Avient Protective Materials (APM) COMPOSITES $51 $84 $212 $668 2016 2018 2020 2022 Long Term Growth Rate 10% Organic CAGR 10% HEALTHCARE $108 $113 $231 $293 2016 2018 2020 2022 Long Term Growth Rate 8-10% Organic CAGR 11% ASIA/EMERGING REGIONS $265 $358 $726 $830 2016 2018 2020 2022 Long Term Growth Rate 5% Organic CAGR 12% $340 $455 $790 2016 2018 2020 2022 $1,175 SUSTAINABLE SOLUTIONS Long Term Growth Rate 8-12% Organic CAGR 11% (1) (1)(1) (Sales in $ millions) #1 Color Formulator Dyneema® - World’s Strongest Fiber™ #1 in Composites applications for outdoor high performance #1 in Performance Inks Customized solutions 140+ PhDs on staff Rapid development of innovative products Extensive patent (2,500+) portfolio 33% Vitality Index Better-positioned toward stable, high-growth end markets Consumer, packaging, healthcare and defense comprise nearly 60% of sales Agnostic to raw materials, helping all customers achieve their goals Broad portfolio of diversified sustainable solutions 90%+ of our innovation pipeline invested in sustainable solutions Long-term growth rate well above GDP with expectations of 8-12% LEVERAGING OUR TRANSFORMED PORTFOLIO 24 Healthcare 8% Packaging 24% Consumer 20% Building & Construction 10% Industrial 15% Transportation 9% Energy 4% Telecom. 4% 2022 PF $3.65B sales Defense 6% Leading Positions Sustainable SolutionsDiversified IndustriesSpecialty Formulator (1) 2022 Pro forma for the acquisition of Avient Protective Materials (2) 2020 Pro forma for the acquisition of Clariant Color (1)(2) (1) $340M $455M $790M 2016 2018 2020PF 2022PF $1,175M P EE R C O M PAR IS O N S AVIENT IS ASSET LIGHT Capex / Revenue 2023E (%) Avient Specialty Formulators Other Specialty / Chemical Companies Source: Peer data per Bloomberg as of February 13, 2023 Note: Avient reflects 2023 estimated revenue of $3,450 and estimated run-rate CAPEX of $110M. 27 3 2 3 3 4 4 3 4 5 5 5 6 7 7 A vi en t K W R P P G F U L A V Y R P M F M C H U N H X L C E E C L A S H S C L E M N FREE CASH FLOW CONVERSION Source: Peer data per Bloomberg as of February 13, 2023 Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
Avient Specialty Formulators Other Specialty / Chemical Companies 2023E(%) 28 79 87 81 79 76 73 90 77 76 75 73 64 59 33 A vi en t K W R P P G F U L A V Y R P M F M C C E A S H H X L 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 February 13, 2023 Note: Avient reflects 2023 adjusted EBITDA guidance of $530M and closing share price of $38.89.
https://www.avient.com/sites/default/files/2023-03/AVNT Mar 2023 Earnings Presentation.pdf
$600 $592 2021 2022 $3.02 $3.04 2021 2022 FULL YEAR 2022 PERFORMANCE (TOTAL COMPANY PRO FORMA) 19 Sales Adjusted EBITDA $3,712 $3,653 2021 2022 -2% Adjusted EPS -1% + 1% (in millions) (in millions) (+4% excluding FX) (+5% excluding FX) (+9% excluding FX) FULL YEAR 2022 SEGMENT PERFORMANCE 20 CAI $2,402 $2,355 Sales ($ in millions) $409 $402 EBITDA SEM Pro Forma $1,308 $1,300 Sales $278 $272 EBITDA (+4% excluding FX) - 2% -1% (+5% excluding FX) - 2% (+4% excluding FX) - 2% (+2% excluding FX) PRO FORMA FULL YEAR EPS BRIDGE 21 Pro Forma 2021 Adjusted EPS 3.02$ Foreign Currency (0.23) Russia Import Sales (0.07) Outdoor High Performance (0.13) Color, Additives and Inks 0.18 Specialty Engineered Materials 0.24 Corporate Costs / Other 0.03 Pro Forma 2022 Adjusted EPS 3.04$ FULL YEAR EBITDA BRIDGE (PRO FORMA TOTAL COMPANY) 22 $ millions CAI: Price / Mix 247 Inflation (176) SEM: Price / Mix 121 Inflation (77) Net Price Benefit 115 Wage and Energy Inflation (47) Clariant Color Integration Synergies 23 Incentives, Other Employee Costs 43 FX (34) Full Year 2022 $592 Adjusted EBITDA Full Year 2021 $ 600 Demand (99) Russia Import Sales (9) • Demand primarily impacted by China lockdowns, 4th quarter industrywide destocking and declining consumer sentiment • Pricing outpaced inflation of raw materials, wages and energy 2023 G U IDA N CE $125 $530 Q1 FY $0.55 $2.40 Q1 FY 2023 GUIDANCE 24 Sales Adjusted EBITDA $845 $3,450 Q1 FY Adjusted EPS (in millions) (in millions) CASH FLOW / BALANCE SHEET 25 • IT investment to further integrate acquired businesses and capture operational efficiencies • Restructuring actions to streamline operations and improve profitability, primarily in Europe ($ 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 K E Y G R O W T H D R I V E R S A N D T R A N S F O R M E D P O R T F O L I O GROWTH DRIVERS: PROVEN SUCCESS 27 (1) Pro forma for the acquisition of Avient Protective Materials (APM) COMPOSITES $51 $84 $212 $668 2016 2018 2020 2022 Long Term Growth Rate 10% Organic CAGR 10% HEALTHCARE $108 $113 $231 $293 2016 2018 2020 2022 Long Term Growth Rate 8-10% Organic CAGR 11% ASIA/EMERGING REGIONS $265 $358 $726 $830 2016 2018 2020 2022 Long Term Growth Rate 5% Organic CAGR 12% $340 $455 $790 2016 2018 2020 2022 $1,175 SUSTAINABLE SOLUTIONS Long Term Growth Rate 8-12% Organic CAGR 11% (1) (1)(1) (Sales in $ millions) #1 Color Formulator Dyneema® - World’s Strongest Fiber™ #1 in Composites applications for outdoor high performance #1 in Performance Inks Customized solutions 140+ PhDs on staff Rapid development of innovative products Extensive patent (2,500+) portfolio 33% Vitality Index Better-positioned toward stable, high-growth end markets Consumer, packaging, healthcare and defense comprise nearly 60% of sales Agnostic to raw materials, helping all customers achieve their goals Broad portfolio of diversified sustainable solutions 90%+ of our innovation pipeline invested in sustainable solutions Long-term growth rate well above GDP with expectations of 8-12% LEVERAGING OUR TRANSFORMED PORTFOLIO 28 Healthcare 8% Packaging 24% Consumer 20% Building & Construction 10% Industrial 15% Transportation 9% Energy 4% Telecom. 4% 2022 PF $3.65B sales Defense 6% Leading Positions Sustainable SolutionsDiversified IndustriesSpecialty Formulator (1) 2022 Pro forma for the acquisition of Avient Protective Materials (2) 2020 Pro forma for the acquisition of Clariant Color (1)(2) (1) $340M $455M $790M 2016 2018 2020PF 2022PF $1,175M P EE R C O M PAR IS O N S AVIENT IS ASSET LIGHT Capex / Revenue 2023E (%) Avient Specialty Formulators Other Specialty / Chemical Companies Source: Peer data per Bloomberg as of February 13, 2023 Note: Avient reflects 2023 estimated revenue of $3,450 and estimated run-rate CAPEX of $110M. 30 3 2 3 3 4 4 3 4 5 5 5 6 7 7 A vi en t K W R P P G F U L A V Y R P M F M C H U N H X L C E E C L A S H S C L E M N FREE CASH FLOW CONVERSION Source: Peer data per Bloomberg as of February 13, 2023 Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
Avient Specialty Formulators Other Specialty / Chemical Companies 2023E(%) 31 79 87 81 79 76 73 90 77 76 75 73 64 59 33 A vi en t K W R P P G F U L A V Y R P M F M C C E A S H H X L 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 February 13, 2023 Note: Avient reflects 2023 adjusted EBITDA guidance of $530M and closing share price of $38.89.
https://www.avient.com/sites/default/files/2023-07/Avient-2022-Sustainability-Report.pdf
locale=en https://www.carbon-minds.com/ https://www.carbon-minds.com/ Global Chemical Management The current and future focus is on continued Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) assessments, reclassifications and communication on the safe use and handling of these substances.
Many other countries are following suit on the EU REACH chemicals regulation or a similar framework.
Many other countries are following suit on the EU REACH chemicals regulation or a similar framework.
https://www.avient.com/sites/default/files/2021-09/avient2020sustainabilityreport-9-2-21.pdf
Many other countries are following suit on the EU REACH chemicals regulation.
This commitment to managing and monitoring these business activities is demonstrated through our Global Chemical Management Policy.
Many other countries are following suit on the EU REACH chemicals regulation.