https://www.avient.com/sites/default/files/resources/PolyOne%2520Proxy%2520Statement%25202016.pdf
On February 6, 2006, we entered into an agreement with Mr.
Newlin(1) 31,286 (2) 250,288 (2) 500,576 (2) 65,500 (3) 131,000 (3) 262,000 (3) 2/4/2015 3,734 11,200 (5) 156,165 2/4/2015 4,000 (6) 153,080 28,264 (2) 226,113 (2) 452,226 (2) 54,500 (3) 109,000 (3) 218,000 (3) 2/4/2015 3,100 9,300 (5) 129,673 2/4/2015 3,400 (6) 130,118 9,162 (1) 73,298 (1) 146,596 (1) 47,500 (4) 95,000 (4) 190,000 (4) 24,769 (4) 49,537 (4) 99,074 (4) 18,343 (4) 36,685 (4) 73,370 (4) 5,681 (4) 11,362 (4) 22,724 (4) 2/4/2015 2,700 8,100 (5) 112,941 2/4/2015 2,900 (6) 110,983 6/15/2015 2,740 (7) 106,613 6/15/2015 2,541 (7) 98,870 6/15/2015 1,302 (7) 50,661 6/15/2015 257 (7) 10,000 Target (#) (g) 38.27 C.M.
All Other Stock Awards: Number of Shares of Stock or Units (RSUs) (column (h)) (6) Annual Grant of RSUs.
https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202012%2520-%2520Critical%2520Imperatives.pdf
Page 102 Critical Imperatives – Medium to Long Term • Continue cultural and paradigm shift from commodity compounder to collaborative formulator as One PolyOne • Accelerate innovation and leverage megatrends to improve our mix of business with higher-margin improve our mix of business with higher-margin specialty products • Increase specialty contribution and advance globalization via acquisitions • Drive relentless execution and creative innovation as key competitive differentiators Page 103 2011 Proforma ColorMatrix 2015 Target “Where we are” “Where we expect to be” 1) Operating Income % Specialty 8.9% PP&S 7.2% 12 – 16% 9 – 12% Elevating our Expectations and Yours PP&S 7.2% Distribution 5.6% 2) Specialty Platform % of Operating Income 50% 3) ROIC* (after-tax) 10% 4) Adjusted Annual EPS Growth 3 yr CAGR = 71% 9 – 12% 6 – 7.5% 65 – 75% 15% Double Digit Expansion *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period Page 104
https://www.avient.com/sites/default/files/resources/Pigment-Nautilus.pdf
AQUARIUS™ SB - GOLD CONCENTRATE 6.
https://www.avient.com/sites/default/files/2025-01/Tossiat-IATF 16949-2016 POLYONE FRANCE SAS Certificate FR094003.pdf
Any translations of this document shall be used for reference only.) 2/2 Appendix to the Certificate of Approval AWARDED TO PolyOne France Tossiat Route de la vavrette, 01250, Tossiat - France IATF USI: LWZS4P REMOTE SUPPORT FUNCTION(S) NAME ADDRESS SCOPE AVIENT LUXEMBOURG 19, Route de bastogne, 9638, Pommerloch - Luxembourg IATF USI: GAZS9A Purchasing, Logistics, Supplier Management PolyOne Europe Logistics 7 Rue bleriot, 4460, Grace-Hollogne - Belgium IATF USI: P4WA4Y Warehousing Polyone Poland Ul. wschdnia 6, 99-300, Kutno - Poland IATF USI: C4W5ZL Logistics https://e-cer.bureauveritas.com/68LJQE0ZV0CO6I7YW0YSXOUMV9WWROQPHPI2AOHRRLFFVRAVTFVZGXKWIE3TOWLTTKEWCPQB9UNAPXHH6T0HXOMUEDVYPRPJLEXBBTKQYPBRICYOKY143TECQ5UMHGA3JX 2024-12-13T10:07:11+0100 Authenticity and Integrity
https://www.avient.com/sites/default/files/2024-12/ISO14001_English_Suzhou ColorMatrix.pdf
Ltd Business Registration Number: 91320505799067336K Registered/ Operation Address: 13 Plant, No.855, Zhujiang Road, Suzhou New District, Jiangsu Province, China by reason of its Environmental Management System has been awarded this certificate for compliance with the standard ISO 14001:2015 The Environmental Management System Applies in the following area: Production and Related Management Activities of Plastic Colorant & Additive (UV Blockers, Anti-Aging,Anti-Oxidation) Certified since: June 6, 2012 Valid from: January 17, 2024 Valid until: January 7, 2027 the expiry date of last certification cycle: January 7, 2024 the date ofrecertification audit: December 21, 2023 to December 22, 2023 After a surveillance cycle, the certificate is valid only when used together with an Acceptance Notice of Surveillance Audit issued by CQC.
https://www.avient.com/sites/default/files/2021-12/AVNT 2021 Investor Day_0.pdf
Capacity below 6GHz 5G mm-wave capacity Demand (GB/mo) B B B B B B B B Avient Corporation 83 Avient in 5G Ecosystem Avient Corporation 84 Antenna Phase Shifters Smart Home Healthcare Wearables INFRASTRUCTURE IOT DEVICES Smart Phones Autonomous Cars Virtual Reality Complete Cable Construction Strength Members Water Blocking Yarns Ripcord Yarns Cable Jacket Cable Insulation Composites Growth Outlook Avient Corporation 85 10% CAGR Megatrend Growth Rate 5G Capacity and Demand Source: Mobile Experts: 5G Millimeter Wave 2019: Radio Architecture and Outlook, March 2019 0 1 2 3 4 5 6 7 2019 2020 2021 2022 2023 2024 2025 2026 2027 D e ns e U rb an C ap ac ity ( G B /m o. ) Capacity below 6GHz 5G mm-wave capacity Demand (GB/mo) B B B B B B B B Future Revenue Growth Assumptions Avient Corporation 86 Growth in Asia, Latin America Woon Keat Moh Regional View Avient Corporation 87 U.S. & Canada 50% EMEA 25% Asia 16% Latin America 9% AVIENT GEOGRAPHY REVENUE REGIONAL ECONOMIC GROWTH 0% 1% 2% 3% 4% 5% 6% 7% 2022 2023 2024 2025 GDP, Percent Change U.S.
Latin America and the Caribbean Emerging and developing Europe Emerging and developing Asia Asia Avient Corporation 88 China India Southeast Asia China Landscape Avient Corporation 89 GDP growth forecast of 6% (2022 – 2025) 14th 5-year plan (2021 – 2025) Infrastructure – 5G networks Sustainability – renewable energy, electric vehicles “Dual Circulation” strategy will drive domestic consumption Avient Corporation 89 Southeast Asia Landscape Avient Corporation 90 GDP growth forecast of 6% (2022 – 2025) “China plus One” strategy driving investment in manufacturing sites Growing middle class population driving the consumption and need for better quality healthcare.
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 6 7 9 A vi e nt A vi e nt ( E xc l.
https://www.avient.com/sites/default/files/resources/PolyOne%2520Investor%2520Presentation%2520Longbow%2520Basic%2520Materials%2520Conference%2520-%2520March%25202016.pdf
PolyOne Corporation Page 4 PolyOne Commodity to Specialty Transformation • Volume driven, commodity producer • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures 2000-2005 2006 - 2009 2010 – 2015 2016 and beyond • Steve Newlin appointed, Chairman, President and CEO • New leadership team appointed • Implementation of four pillar strategy • Focus on value based selling, investment in commercial resources and innovation to drive transformation • Substantial EPS growth from $0.13 to all-time high of $1.96 • Shift to faster growing, high margin, less cyclical end markets • Key acquisitions propel current and future growth, as well as margin expansion • Specialty mix expands to 65% of Operating Income – strongest mix of earnings in history • Deliver consistent double digit annual EPS growth • Maintain >35% vitality index • Pursue strategic acquisitions that expand specialty offerings and geographic breadth • Invest and grow current and next generation talent PolyOne Corporation Page 5 25 Consecutive Quarters of EPS Growth Note: 2009 has not been restated for subsequent changes in accounting principles or discontinued operations -$0.10 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 2009 2010 2011 2012 2013 2014 2015 Adjusted Earnings Per Share -2% 0% 2% 4% 6% 8% 10% 12% 2009 2010 2011 2012 2013 2014 2015 Adjusted Consolidated Operating Margin 2.8% 5.2% 5.6% 6.7% 8.3% 6.9% 9.5% PolyOne Corporation Page 6 2015 Revenues: $3.4 Billion End Markets 2015 Revenues: $3.4 Billion PolyOne At A Glance $0.12 $0.27 $0.21 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Adjusted EPS United States 66% Europe 13% Canada 7% Asia 7% Latin America 7% Appliances 4% Building & Construction 12% Consumer 10%Electrical & Electronics 5% Healthcare 11% Industrial 14% Packaging 13% Textiles 2% Transportation 20% Wire & Cable 9% Distribution 29% PP&S 20% Specialty 51% $1.96 PolyOne Corporation Page 7 Old PolyOne *Operating Income excludes corporate charges and special items 2% 43% 65% 0% 20% 40% 60% 80% 100% 2005 2010 2015 2020 % o f O pe ra tin g In co m e* JV's Performance Products & Solutions Distribution Specialty 80%+ Specialty OI $5M $87M $229M Mix Shift Highlights Specialty Transformation Transformation 2020 Platinum Vision Platinum Vision PolyOne Corporation Page 8 Color and Engineered Materials at the Heart of Specialty Transformation OPERATING MARGIN 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 14.7% 16.7% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 Platinum Vision COLOR, ADDITIVES AND INKS 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 12.1% 14.7% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 Platinum Vision SPECIALTY ENGINEERED MATERIALS PolyOne Corporation Page 9 2006 2015 2020 “Where we were” “Where we are” Platinum Vision 1) Operating Income % Specialty: Color, Additives & Inks 1.7% 16.7% 20%+ Specialty Engineered Materials 1.1% 14.7% 20%+ Designed Structures & Solutions 1.4% (2012) 3.0% 12 – 14% Performance Products & Solutions 5.5% 8.3% 10 – 12% Distribution 2.6% 6.6% 6.5 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 65% 80%+ 3) ROIC* 5.0% 11.8% 15% 4) Adjusted EPS Growth N/A 25 Consecutive Quarters of YOY EPS Growth Double Digit Expansion Proof of Performance & 2020 Goals *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period PolyOne Corporation Page 10 Therma-Tech™ & Sheet GEON™ Vinyl Polymer Colorants Therma-Tech™ TPE’s & Film TPE + OnForce™ Gravi-Tech™ Page 10 Film Target End Markets… Healthcare PolyOne Corporation Page 11 TPE + OnForce (SEM) OnForce (SEM) Glasforms (SEM) TPE Vibration Dampening (SEM/GLS) TPE & Film (SEM + DSS) Glasforms (SEM) Polymer Colorants (CAI) Thermatech (SEM) Thermoplastic Elastomers (SEM) TPE + OnForce (SEM) OnForce (SEM) Thermoplastic Elastomers (SEM) Glasforms (SEM) Polymer Colorants (CAI) Sheet (DSS) Source: Outdoor Industry Association Target End Markets… Outdoor High Performance PolyOne Corporation Page 12 Sound & Vibration Management Fuel Handling Systems Interior & Exterior Trim Structural Braces & Brackets Interior Structural Components Lighting Air management Electronics & Cameras Fluid Handling Target End Markets… Automotive Underhood Components Roof Systems PolyOne Corporation Page 13 Target End Markets… Packaging PreservaPak™ OnColor™ Smart Batch™ VersaFlex™ TPE Cap Liner ColorMatrix™ Amosorb™ Oxygen Scavenger ColorMatrix™ Ultimate™ UV Light Barrier OnCap™ Laser Marking Additives PolyOne Corporation Page 14 Innovation Drives Earnings Growth *Specialty Platform revenue from products introduced in last five years $20 $53 2006 2015 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 28% 2006 2015 Specialty Platform Gross Margin 12% 43% 2006 2015 Target ≥ 35% Innovation Pipeline Potential PolyOne Corporation Page 15 2,883 2,414 2006 2015 Volume (lbs in millions) -16% $103 $192 2006 2015 Commercial, R&D and Marketing Spending ($M) +86% $303 $721 2006 2015 Adjusted Gross Margin ($M) +138% Investing to Drive Growth Ours Is Not a Cost Cutting Story PolyOne Corporation Page 16 Design and Service as a Differentiator Right Material & Color Desired Product Design Appropriate Manufacturing Process Delivering Concept to Commercialization Connecting the Dots with iQ Design Labs and InVisiO Color Design PolyOne Corporation Page 17 Customer First Through World-Class Service Strengthening relationships through: Providing LSS services to small/medium sized customers Providing training in Customer Centric Selling Skills with customers World’s Best Business Process Excellence Program in 2012* World’s Best Start-up program for Lean Six Sigma Deployment in 2009* 81% 93% 2006 2015 16.2% 9.7% 2006 2015 On-Time Delivery Working Capital % of Sales 52% of associates trained in LSS Five consecutive years – CFO Magazine Best Working Capital Management in the chemical industry Commitment to Operational Excellence PolyOne Corporation Page 18 60% 97% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 Q4 2015 Pension Funding** As of December 31, 2015 Debt Maturities & Pension Funding Net Debt / Adjusted EBITDA*= 2.1x ** includes US-qualified pension plans only *TTM 12/31/2015 $550 $600 $200 $300 $400 $500 $600 $700 $800 2022 2023 Debt Maturities As of December 31, 2015 ($ millions) Coupon Rate: 3.750% 5.250% PolyOne Corporation Page 19 Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return Expanding our sales, marketing, and technical capabilities Investing in operational and LSS initiatives ~75% of capital expenditures fund growth initiatives Organic Growth Acquisitions Share Repurchases Dividends $0.16 $0.20 $0.32 $0.40 $0.48 $0.10 $0.20 $0.30 $0.40 $0.50 2011 2012 2013 2014 2015 2016 Annual Dividend Targets that expand our: • Specialty offerings • End market presence • Geographic breadth Synergy opportunities Adjacent material solutions Repurchased nearly 1.0 million shares in Q4 2015 Repurchased 15.8 million shares since early 2013 4.2 million shares are available for repurchase under the current authorization $0.24 PolyOne Corporation Page 20 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
Addressable market exceeds $40 billion 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 PolyOne Corporation Page 21 Appendix PolyOne Corporation Page 22 Recent Acquisitions Kraton TPE Assets Magenta Master Fibers February 2016 – Acquired Kraton’s thermoplastic elastomer (TPE) assets Serve personal care, medical, packaging (protective film) and electronics applications Purchase price of $72 million represents a multiple of 9x EBITDA Adds $35 million in annual revenue and $0.03 accretive to 2016 adjusted EPS Expands GLS presence in consumer, healthcare, transportation, and packaging end markets December 2015 – Acquired Magenta Master Fibers, an innovative developer of specialty color concentrates for the global fiber industry Purchase price of $22 million represents a multiple of 6.8x EBITDA Adds $16 million in annual revenue and $0.01 accretive to 2016 adjusted EPS Broadens portfolio of colorant and additives technologies for fiber applications and extends existing reach into strategic end markets such as transportation and consumer goods Medical Baby Care Electronics Food Packaging Automotive Textiles Home Textiles Clothing Outdoor PolyOne Corporation Page 23 $0.82 $1.00 $1.31 $1.80 $1.96 $0.00 $0.75 $1.50 $2.25 2011 2012 2013 2014 2015 Adjusted EPS 2015 Full Year Financial Highlights Color Additives & Inks operating margin reached record level of 16.7% Specialty Engineered Materials operating margin grew 260 basis points year-over-year to 14.7% Adjusted EPS has grown on average 24% per year since 2011 $50 $75 $104 $125 $135 $0 $40 $80 $120 $160 2011 2012 2013 2014 2015 CAI Operating Profit $46 $47 $57 $72 $80 $20 $40 $60 $80 $100 2011 2012 2013 2014 2015 SEM Operating Profit Note: $ in millions, except per share data PolyOne Corporation Page 24 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 16.7% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 Operating Income % of Sales At a Glance Color, Additives and Inks 2015 Revenues: $0.8 Billion Solutions Expanding Profits 2015 Revenue by Industry Segment 14.7% Platinum Vision United States 48% Europe 33% Canada 2% Asia 12% Latin America 5% Appliances 2% Building & Construction 11% Consumer 8% Electrical & Electronics 1% Healthcare 6% Industrial 13% Packaging 31% Textiles 8% Transportation 9% Wire & Cable 11% PolyOne Corporation Page 25 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 14.7% 20%+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 Operating Income % of Sales At a Glance Specialty Engineered Materials 2015 Revenues: $0.5 Billion Solutions 2015 Revenue by Industry Segment Expanding Profits Platinum Vision 12.1% United States 49% Europe 29% Canada 2% Asia 20% Appliances 3% Building & Construction 3% Consumer 20% Electrical & Electronics 16% Healthcare 11% Industrial 8% Packaging 5% Transportation 19% Wire & Cable 15% PolyOne Corporation Page 26 1.4% 5.6% 7.3% 3.0% 12-14% 2012 2013 2014 2015 2020 Operating Income % of Sales At a Glance Designed Structures and Solutions Solutions 2015 Revenues: $0.5 Billion Expanding Profits 2015 Revenue by Industry Segment Platinum Vision Appliances, 3% Building & Construction 9% Consumer 5% Healthcare 7% Industrial 24% Packaging 19% Transportation 33% United States 97% Canada 3% PolyOne Corporation Page 27 Appliances 7% Building & Construction 31% Consumer 5% Electrical & Electronics 3% Healthcare 1% Industrial 13% Packaging 5% Transportation 19% Wire & Cable 16% 5.5% 6.9% 3.8% 3.6% 5.5% 4.3% 6.3% 7.2% 8.3% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 Operating Income % of Sales At a Glance Performance Products and Solutions Solutions Expanding Profits 2015 Revenues: $0.7 Billion 10-12% Platinum Vision 2015 Revenue by Industry Segment 7.7% United States 79% Canada 14% Asia 2% Latin America 5% PolyOne Corporation Page 28 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% 6.4% 5.9% 6.6% 6.5-7.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 Operating Income % of Sales 15% 53% 2006 Q4 2015 At a Glance Distribution Key Suppliers 2015 Revenues: $1.0 Billion ROIC Expanding Profits 6.1% Platinum Vision Appliances 6% Building & Construction 4%Consumer 13% Electrical & Electronics 6% Healthcare 23% Industrial 16% Packaging 4% Transportation 24% Wire & Cable 4% http://www.polyone.com/Pages/VariationRoot.aspx PolyOne Corporation Page 29 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 30 Application Examples PolyOne Corporation Page 31 Outdoor Applications • Leading provider of high performance specialty materials for the recreational and sports & leisure industry • Well positioned across all segments to address market needs Metal to Polymer Conversion Lightweighting Thermal Management Impact Performance Source: Outdoor Industry Association PolyOne Corporation Page 32 $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 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 PET Bottling Technology 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2009 2014 2019 Asia Pacific North America Latin America Western Europe Eastern Europe Middle East and Africa Global PET Packaging Growth 2009-2019 Source: Euromonitor retail off-trade consumption (PET bottles & jars, home care, personal care, food & non-alcoholic beverages) B ill io n un its 5% CAGR PolyOne Corporation Page 33 • 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 34 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 35 • 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 36 • Reduced health and environmental impact • System cost reduction • Radiation-shielding performance • Parts consolidation • Design freedom CT Scanner PolyOne Corporation Page 37 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 sensory properties PolyOne Corporation Page 38 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 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.
https://www.avient.com/sites/default/files/2021-03/avient-antitrust-2021-update-english.pdf
Antitrust Laws 2 Antitrust Law Violations 3 Antitrust Potential Areas of Concern 3 Conclusion 5 Reporting Possible Violations 6 Avient Ethics Hotline 6 Protection from Retaliation 6 Antitrust Checklist 7 Quick Reference: Antitrust DO’s and DON’Ts 9 Guide For Compliance Avient is committed to promoting fair competition and free enterprise in the marketplace.
Ethics Hotline: https://www.Avient.com/company/policies-and- governance/ethics-hotline Telephone Ethics Hotline Number: 1-877-228-5410 6 HOME | TOC Updated: February 2021 mailto:ethics.officer@avient.com mailto:legal.officer%40avient.com?
Act at all times in a manner that will evidence to everyone that you are competing vigorously. 6.
https://www.avient.com/sites/default/files/2023-02/AVNT Q4 2022 Earnings Presentation.pdf
GUIDANCE DEBT / LEVERAGE REDUCTION • Completed sale of Distribution and paid down $750M of debt in November • Strong free cash flow in fourth quarter reduced leverage and enabled paydown of additional $200M of debt • Fixed/Floating Debt Ratio 63/37 • Proven track record of deleveraging following acquisitions through consistent free cash flow generation $725 $725 $725 $575 $500 $400 $600 $525 $425 $650 $650 $650 $600 $2.40B $2.20B 2030 Notes 2029 Term Loan 2026 Term Loan 2025 Notes After Distribution Divestiture Year-End 4 Year-End Leverage 3.8x 3.1x 2.9x 2023 Notes After Avient Protective Materials Acquisition $3.15B 2022 TRANSFORMATIONAL PORTFOLIO ENHANCEMENTS 5 EBITDA margins expanded from 12% to 16% Diversified end markets with reduced exposure to more cyclical industries Dyneema® Acquisition $1.48B acquisition strengthens composites platform Significantly improved EBITDA margins $950M divestiture results in 100% specialty sales Strong exit multiple of 10x TTM EBITDA despite market volatility Distribution Divestiture Improved Portfolio GROWING COMPOSITES PLATFORM CONTRIBUTIONS TO SEM SEGMENT 6 Note: 2022 is pro forma for Avient Protective Materials 2016 Sales 2022 Sales Advanced Composites 51% $560M $1,300M Advanced Composites 9% COMPOSITES PORTFOLIO D Y N E E M A ® E X P A N D S O U R E N G I N E E R E D F I B E R S A N D T A P E S T E C H N O L O G Y LFT Tapes Laminates/Panels Shapes Pultrusion Engineered Fibers 7 ADVANCED COMPOSITES PERFORMANCE 8 (1) Pro forma for the acquisition of Avient Protective Materials Sales $51 $84 $212 $668 2016 2018 2020 2022 $4 $10 $41 $169 2016 2018 2020 2022 EBITDA (1) (1) ($ in millions) PORTFOLIO EVOLUTION AND EPS EXPANSION 9 Adj.
EPS (1) $0.14 $2.67 $3.04 2006 2018 2022PF TOP-TIER SUSTAINABILITY PERFORMANCE AND RECOGNITION Industry Sustainability Standards 90th percentile 84th ESG Ratings Performance 3 1 4 10 PEOPLE C U L T U R E I S E V E R Y T H I N G Community Service 7x Safer than Industry Average World-Class Safety Leadership Development Over $17 million raised since 2010 Diversity & Inclusion 11 2022 RE SU LT S Q4 EBITDA BRIDGE (PRO FORMA TOTAL COMPANY) 13 $ millions CAI: Price / Mix 42 Inflation (20) SEM: Price / Mix 14 Inflation (10) Net Price Benefit 26 Wage and Energy Inflation (13) Clariant Color Integration Synergies 4 Incentives, Other Employee Costs 21 FX (10) Q4 2022 $107 Adjusted EBITDA Q4 2021 $ 132 Demand (50) Russia Import Sales (3) • Demand contraction especially prevalent in EMEA and Asia • Pricing continues to cover inflation of raw materials, wages and energy PROVEN TRACK RECORD OF STRONG AND IMPROVING FREE CASH FLOW GENERATION 14 • Periods of economic weakness have driven higher levels of cash generation due to working capital management • Anticipate continued strong free cash flow generation and conversion despite global uncertainty 78% 78% 80% 80% 81% 78% 84% 83% 80% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2014 2015 2016 2017 2018 2019 2020 2021 2022 0 50 100 150 200 250 300 350 400 F re e C as h F lo w C o n ve rs io n F re e C as h F lo w FCF $ AVNT FCF Conversion % S&P FCF Conversion % Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA. 2020 is pro forma for Clariant Color and 2022 is pro forma for Avient Protective Materials. $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 2011 and 2018 valuations reflect trailing 12 months EBITDA at December 31 of the respective years. 29 EV / 2023E EBITDA Historic Multiple 6.5 8.3 10.0 15.6 13.9 13.7 12.8 9.5 18.0 17.5 12.3 10.2 9.7 8.8 8.4 5.9 A vi en t (2 01 1) A vi en t (2 01 8) A vi en t K W R P P G R P M A V Y F U L H X L E C L F M C A S H S C L H U N E M N C E 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 (1) Total company adjusted EBITDA of $592M includes corporate costs $2,355M $402M $1,300M $272M Sales EBITDA Specialty Engineered Materials Color Additives and Inks $592M$3,653M (1) Transportation 9% Healthcare 8% 31 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 32 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 33 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% 34 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/2020-09/gravi-tech-processing-guide-chinese.pdf
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