https://www.avient.com/sites/default/files/2023-11/AVNT Q3 2023 Earnings Presentation - Website.pdf
AVIENT CORPORATION T H I R D Q U A R T E R 2 0 2 3 R E S U L T S (NYSE: AVNT) N OV E M B E R 2 , 2 0 2 3 DISCLAIMER Forward-Looking Statements Certain statements contained in or incorporated by reference into this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
Additionally, Adjusted EPS excludes the impact of special items and amortization expense associated with intangible assets. 2 O P E N I N G RE MARK S B O B P A T T E R S O N C H A I R M A N , P R E S I D E N T A N D C E O Complementary technologies and customer relationships offer opportunity to advance commercial strategy Dyneema®, the world’s strongest fiber™, to accelerate growth of sustainable, ultralight and high performance applications AVIENT PROTECTIVE MATERIALS FIRST YEAR 4 Composites comprises over half of Specialty Engineered Materials, compared to 9% in 2016 Proven history of success in areas such as outdoor high performance, defense and sustainable solutions Composites 44% 56% 2023E Sales Collaboration & InnovationComposites as a % of SEM People & Culture Talented, passionate, and creative associates drive continued integration success and allow two cultures to come together as one Avient Lightweight Protective Laminates: PROJECTILE PROTECTION Dyneema® Fiber Solutions Cushioning + Fit + Comfort: LONG-TERM WEAR reSound™ Versaflex™ Thermoplastic Elastomers Strength + Durability + Light-Weighting: SOLID MOUNTING BRACKETS Nymax™ Bergamid™ Complēt™ Engineered Materials Durability + Lubricity: HELMET LATCHES Lubri-One™ Internally Lubricated Polymers Color Consistency and Weatherability CUSTOMIZED SPECIFICATIONS Avient Color and Additive Solutions Antennae Performance FAST, RELIABLE CONNECTIONS PREPERM™ Low-Loss Dielectric Thermoplastics AVIENT PROTECTIVE MATERIALS CROSS SELLING OPPORTUNITIES Wired Connections CONSTANT COMMUNICATION Syncure™ Cross-linkable Wire & Cable Formulations5 6 AVIENT PROTECTIVE MATERIALS CROSS SELLING OPPORTUNITIES 6 Q 3 P E RFO RMAN CE 15.4% 16.3% 2022 PF 2023 Results vs.
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 12 $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 13 (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 14 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% 17 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 18 • 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 19 • 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 20 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/2021-08/baby-bottle-one-page-case-study.pdf
BABY BOTTLE MANUFACTURER I N F A N T M I L K B O T T L E S • Compliant with FDA food contact and China National Standard GB 9685 • Able to withstand repeated steam sterilization • Transparent for more pleasing appearance and easy identification of measurement lines • Good impact resistance • Developed formulation to comply with both FDA and GB 9685 • Provided material able to withstand repeated steam sterilization and maintain excellent mechanical performance • Achieved a more pleasing color and clarity to enhance measurement lines • Met the need for impact resistance Colorant Chromatics™ PPSU Precolor KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2022-05/Glucose Monitoring App Snapshot.pdf
Glucose Monitoring App Snapshot draft MEDICAL DEVICE OEM C O N T I N U O U S G L U C O S E M O N I T O R I N G S Y S T E M • Adapt to strict processing requirements of a secondary operation put in place to manufacture a new device model • Meet material size and thickness requirements while achieving desired color target • Overcome material unpredictability and sensitivity to heat, light and moisture • Minimize impact of supply chain instability and changes • Offered support for processing under low pressure conditions and at every stage of manufacturing • Performed extensive R&D work to consistently deliver the customer’s color target of a hard-to-achieve light gray • Effectively addressed all material challenges and sensitivities • Provided regular ‘summaries of understanding’ to keep up with changing forecasts and ordering patterns Mevopur™ Pre-color Formulation KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2022-07/Additives and Colorants for PP-R PP-RCT Pipes - Application Snapshot.pdf
PIPE & FITTINGS MANUFACTURER W A T E R / F L U I D D I S T R I B U T I O N • Suitable for PP-R and PP-RCT • Specific color targets for external and inner layers • Improved resistance to chlorine for the inner layer • Food contact approval for the inner layer • Batch-to-batch consistency • Matched color references in concentrates suitable for PP-R and PP-RCT • Developed custom colorant/antioxidant combination masterbatch with high resistance to chlorine and food contact approval for the inner layer • Ensured batch-to-batch consistency for sustained performance Color concentrates and color/antioxidant combination masterbatch KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2023-09/Syncure low-voltage wire jacket and insulation case study snapshot.pdf
MAJOR W&C PRODUCER L O W - V O L T A G E W I R E J A C K E T & I N S U L A T I O N • Flame retardance • Heat resistance up to 125°C • Long term insulation resistance (LTIR) • Cold temperature resistance • Offered singular formulation capable of meeting UL-44, UL-4703, UL-1277 and CSA 22.2 listing specifications • Delivered economical solution suitable for multiple end-use commercial and residential applications • Provided on-site technical support to optimize production quality and speed Syncure™ XLPE Cross-linkable Polyethylene Formulations KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2022-07/ECCOH_ 5702 SEPAP - Riser Cables - Applications Snapshot.pdf
CABLE MANUFACTURER H I G H F L A M E R E T A R D A N T S H E A T H F O R R I S E R C A B L E S • Fire performance: CPR classification Dca s1 a1 d0 at a thickness of 350µm • Low shrinkage • Water, UV and chemical resistance • Low CoF • Reduced cable weight by decreasing the jacket thickness from 550µm to 350µm • Provided required CPR classification at a reduced thickness allowing installation in homes and buildings in between walls and floors • Increased cable lifetime due to improved chemical and UV resistance • Enabled fast cable processing ECCOH™ 5702 SEPAP Formulation KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2021-04/edgetek-nylon-power-tool-case-study-one-pager.pdf
POWER TOOL MANUFACTURER P I S T O N R I N G A N D C O N N E C T I N G R O D F O R P O W E R T O O L • Exceptional mechanical properties • Good wear and abrasion resistance • High purity and light weight • Worked directly with the manufacturer from design to molding to better understand and satisfy key requirements • Improved strength, stiffness and stability with one-stop technology service to best meet customer’s needs • Provided lightweighting solution to help customer achieve its sustainability goal Edgetek™ PK PEEK Formulation KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2024-04/Maxxam REC - Outdoor Socket - Case Study Snapshot.pdf
HAGER GROUP O U T D O O R E L E C T R I C A L S O C K E T • A more sustainable, recycled formulation • Similar performance to current virgin polyolefin including: • Good UV, scratch, and impact resistance • Reliable coloration to RAL 7011 and RAL 7035 • A matte finish • Expedited the approval of Plastic Bank as a new supplier • Formulated custom materials with recycled ocean-bound plastic (Social Plastic®) from Plastic Bank • Provided functional replacements for the previous virgin polyolefins with comparable performance • Enabled Hager to launch new cubyko leaf outdoor sockets and switches to market containing 27% recycled materials Maxxam REC Recycled Formulation KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2023-03/Gravi-Tech- Portable Speaker-Application Snapshot.pdf
ELECTRONICS BRAND P O R T A B L E S P E A K E R W E I G H T E D C O M P O N E N T • Ensures quality sound performance • Injection molding capabilities for design flexibility • Impact protection within a set temperature range • Meets target density 3.0g/cm3 and product weight 400g • Reduced scrap and improved product manufacturability, compared to metal, with an injection molded formulation • Met strict testing requirements, including achieving desired impact protection performance at the specific temperature range and target weight • Maintained depth of base sound Gravi-Tech™ Density Modified Formulation KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2020-07/case-study-one-pager-therma-tech-led-light-heat-exchanger.pdf
© 2019, All Right Reserved Avient Corporation, 33587 Walker Road, Avon Lake, Ohio USA 44012 LED LIGHT MANUFACTURER H E A T E X C H A N G E R F O R A N E L E C T R O N I C C I R C U I T B O A R D • Looking to replace aluminum • Reduce corrosion • Light weighting • Eliminated the effects of corrosion • Provided a lightweight alternative to aluminium • Redesigned the part for easier processing and further weight reduction • Enabled the customer to take a new, innovative product in to the market Therma-Tech™ Thermally Conductive Formulation KEY REQUIREMENTS WHY AVIENT?