https://www.avient.com/sites/default/files/2024-03/AVNT February IR Presentation_w_Non-GAAP Recs_v2.pdf
Avient corporation first quarter 2023 results AVIENT CORPORATION I N V E S T O R P R E S E N T A T I O N (NYSE: AVNT) F E B R UA RY 2 0 2 4 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.
Continue fostering our Great Place to Work® culture Strategic Objectives Long Term Growth Rates Growth Drivers $340 $455 $790 $1,135 2016 2018 2020 2023 $51 $84 $212 $645 2016 2018 2020 2023 $108 $113 $231 $230 2016 2018 2020 2023 $265 $358 $726 $725 2016 2018 2020 2023 8-12% 8-10% 8-10% 5% Sustainable Solutions Composites Healthcare Asia/Emerging Regions Profitable Growth Great Place to Work 5.4% 10.9% 16.0% 2006 2014 2023 EBITDA Margins $0.14 $1.93 $2.36 2006 2014 2023 Adjusted EPS TOP-TIER SUSTAINABILITY PERFORMANCE AND RECOGNITION Industry Sustainability Standards ESG Ratings Performance 1 2 4 87th 94th percentile 5 Avient CDP Score: A- FE BRUARY 14 , 2024 W E BCAS T P RE S E N TAT I O N DR.
PY (TOTAL COMPANY) $790 $719 2022 2023 $107 $114 2022 2023 Sales Adjusted EBITDA (in millions) $0.42 $0.52 2022 2023 Adjusted EPS (in millions) - 9% + 7% + 24% Sales Adjusted EBITDA Adjusted EPS 15 Q4 2023 SEGMENT PERFORMANCE 16 CAI $491 $459 Sales (in millions) $70 $84 EBITDA SEM $301 $260 Sales $55 $49 EBITDA - 7% - 14%+20% - 11% 2022 2023 (in millions) Q4 EBITDA BRIDGE (TOTAL COMPANY) 17 $ millions CAI: Price / Mix 11 Deflation 14 SEM: Price / Mix 4 Deflation 9 Net Price Benefit 38 Cost Reductions 13 Wage Inflation (8) Other (2) Q4 2023 $114 Adjusted EBITDA Q4 2022 $ 107 Demand (34) • Demand was down, but less than in previous quarters, due to slowing pace of destocking • Positive net price benefit: o CAI – Pricing flat with favorable mix from uptick in packaging and consumer end markets and raw material deflation o SEM - Pricing flat with favorable mix from Composites and raw material deflation • Cost reductions primarily driven by reduced administrative costs and cost synergies 2024 G U I DAN CE 2024 GUIDANCE Full Year 2024 Guidance Adjusted EBITDA $505 to $535 million Adjusted EPS $2.40 to $2.65 Interest Expense $105 to $110 million Adjusted Effective Tax Rate 23% to 25% Capital Expenditures ~$140 million 19 Q1 Adjusted EPS of $0.68 AP P E N DI X 21 Performance Additives 15% Pigments 13% TiO2 9% Dyestuffs 2% Polyethylene 10%Nylon 5% Polypropylene 4% Styrenic Block Copolymer 4% Other Raw Materials 38% ~40% hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials RAW MATERIAL BASKET SEGMENT DATA U.S. & Canada 41% EMEA 36% Asia 18% Latin America 5% 2023 SEGMENT, END MARKET AND GEOGRAPHY GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 19% Packaging 23%Industrial 16% Building and Construction 9% Telecommunications 4% Energy 5% Defense 7% END MARKET REVENUE $2,007M $358M $1,138M $224M Sales EBITDA Specialty Engineered Materials Color Additives and Inks $502M$3,143M (1) Transportation 10% Healthcare 7% 23 (1) Total company sales and adjusted EBITDA of $3,143M and $502M, respectively, include intercompany sales eliminations and corporate costs 2023 REVENUE | $2 .0 BILLION US & Canada 34% EMEA 37% Asia 21% Latin America 8% END MARKET REGION 24 Packaging 34% Consumer 21% Healthcare 8% Industrial 15% Transportation 9% Building & Construction 10% Telecommunications 1% Energy 2% COLOR, ADDITIVES & INKS 2023 REVENUE | $1 .1 BILLION US & Canada 52% EMEA 35% Asia 13% 25 Packaging 5% Consumer 16% Healthcare 6%Industrial 16% Transportation 12% Telecommunications 9% Energy 10% Defense 18% Building & Construction 8% END MARKET REGION SPECIALTY ENGINEERED MATERIALS Packaging 32% Consumer 26% Healthcare 9% Industrial 13% Building & Construction 6% Telecommunications 2% Energy 2% Defense 1% Asia (18% of sales) Transportation 9% 2023 AVIENT REGIONAL SALES Packaging 25% Consumer 13% Healthcare 5% Industrial 18% Building & Construction 9% Energy 5% Defense 8% EMEA (36% of sales)Transportation 13% Packaging 13% Consumer 22% Healthcare 10% Industrial 16% Building & Construction 12% Energy 6% Defense 8% US & Canada (41% of sales) Transportation 9% Packaging 59% Consumer 22% Healthcare 2% Industrial 8% Building & Construction 4% LATAM (5% of sales) Transportation 5% Telecommunications 4% Telecommunications 4% 26 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/2024-05/AVNT Q1 2024 Earnings Presentation_For_Website_w_non-GAAP_5_6_1.pdf
Avient corporation first quarter 2024 results and 2024 financial guidance AVIENT CORPORATION F I R S T Q U A R T E R 2 0 2 4 R E S U L T S A N D 2 0 2 4 F I N A N C I A L G U I D A N C E (NYSE: AVNT) M AY 7 , 2 0 2 4 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.
For the same reasons, Avient is unable to address the probable significance of the unavailable information. 2 O P E N I N G RE MARK S 4 REGIONAL DEMAND TRENDS-TOTAL COMPANY Q 1 S A L E S V S P Y ( E X C L U D I N G F X ) 4 US & Canada Latin America EMEA Asia +2% -6% Flat +2% Avient ex.
Q1 2023 (TOTAL COMPANY) $846 $829 Q1 23 Q1 24 $134 $143 Q1 23 Q1 24 17.3% Sales Adjusted EBITDA (in millions) $0.63 $0.76 Q1 23 Q1 24 Adjusted EPS (in millions) + 7% + 21% Sales Adjusted EBITDA Adjusted EPS 6 - 2% 15.8% +150 bps * * * Adjusted EBITDA Margin % Q1 2024 SEGMENT PERFORMANCE (COLORS, ADDITIVES & INKS) $537 $515 Q1 23 Q1 24 $91 $97 Q1 23 Q1 24 18.8% Sales Adjusted EBITDA (in millions) (in millions) + 7% Sales Adjusted EBITDA 7 - 4% 17.0% +180 bps * * * Adjusted EBITDA Margin % • Year over year demand continues to improve for the segment but slowly due to continued weakness in Europe • Raw material deflation & cost reduction actions primary drivers of adjusted EBITDA growth and margin expansion of +180 bps vs Q1 2023 Q1 2024 SEGMENT PERFORMANCE (SPECIALTY ENGINEERED MATERIALS) $310 $314 Q1 23 Q1 24 $64 $73 Q1 23 Q1 24 23.2% Sales Adjusted EBITDA (in millions) (in millions) + 14% Sales Adjusted EBITDA 8 + 1% 20.8% +240 bps * * * Adjusted EBITDA Margin % • Sales growth in defense end market offset by weaker demand in telecommunications end market • Raw material deflation and favorable mix impact from defense sales primary drivers of adjusted EBITDA growth and margin expansion of +240 bps vs Q1 2023 Q1 EBITDA BRIDGE (TOTAL COMPANY) 9 $ millions CAI: Price / Mix (1) Deflation 16 SEM: Price / Mix 4 Deflation 7 Net Price Benefit 26 Wage/Other Inflation (9) FX (2) Q1 2024 $143 Adjusted EBITDA Q1 2023 $ 134 Demand (6) • Positive net price benefit: o Favorable raw material deflation in both segments • Wage and other inflation more than offset cost reductions/synergies 2024 G U I DAN CE FY 2024 GUIDANCE Original Revised Adjusted EBITDA $505 to $535 million $510 to $535 million Adjusted EPS $2.40 to $2.65 $2.50 to $2.65 Interest Expense $105 to $110 million $105 million Adjusted Effective Tax Rate 23% to 25% 23% to 25% Capital Expenditures ~$140 million ~$140 million 11 Q2 2024: Adjusted EPS of $0.71 CE O “ TO P O F MI N D” FO CU S ARE AS AREAS OF FOCUS 13 +7% Drive Profitable Organic Top-Line Growth with Margin Expansion Amplify Innovation Build Leadership & Talent Pipeline AP P E N DI X 16 Performance Additives 15% Pigments 13% TiO2 9% Dyestuffs 2% Polyethylene 10%Nylon 5% Polypropylene 4% Styrenic Block Copolymer 4% Other Raw Materials 38% ~40% hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials RAW MATERIAL BASKET SEGMENT DATA U.S. & Canada 41% EMEA 36% Asia 18% Latin America 5% 2023 SEGMENT, END MARKET AND GEOGRAPHY GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 19% Packaging 23%Industrial 16% Building and Construction 9% Telecommunications 4% Energy 5% Defense 7% END MARKET REVENUE $2,007M $358M $1,138M $224M Sales EBITDA Specialty Engineered Materials Color Additives and Inks $502M$3,143M (1) Transportation 10% Healthcare 7% 18 (1) Total company sales and adjusted EBITDA of $3,143M and $502M, respectively, include intercompany sales eliminations and corporate costs 2023 REVENUE | $2 .0 BILLION US & Canada 34% EMEA 37% Asia 21% Latin America 8% END MARKET REGION 19 Packaging 34% Consumer 21% Healthcare 8% Industrial 15% Transportation 9% Building & Construction 10% Telecommunications 1% Energy 2% COLOR, ADDITIVES & INKS 2023 REVENUE | $1 .1 BILLION US & Canada 52% EMEA 35% Asia 13% 20 Packaging 5% Consumer 16% Healthcare 6%Industrial 16% Transportation 12% Telecommunications 9% Energy 10% Defense 18% Building & Construction 8% END MARKET REGION SPECIALTY ENGINEERED MATERIALS Packaging 32% Consumer 26% Healthcare 9% Industrial 13% Building & Construction 6% Telecommunications 2% Energy 2% Defense 1% Asia (18% of sales) Transportation 9% 2023 AVIENT REGIONAL SALES Packaging 25% Consumer 13% Healthcare 5% Industrial 18% Building & Construction 9% Energy 5% Defense 8% EMEA (36% of sales)Transportation 13% Packaging 13% Consumer 22% Healthcare 10% Industrial 16% Building & Construction 12% Energy 6% Defense 8% US & Canada (41% of sales) Transportation 9% Packaging 59% Consumer 22% Healthcare 2% Industrial 8% Building & Construction 4% LATAM (5% of sales) Transportation 5% Telecommunications 4% Telecommunications 4% 21 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/2021-05/frost-for-persaonal-care-pet-bottle.pdf
SHAMPOO BRAND P E T B O T T L E F O R H A I R C A R E • Customized color and anti-UV combination • Provided quick response and local service • Simplified processing without additional equipment investment • Increase innovation capabilities and brand aesthetics OnColor™ Frost PET Effect KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2024-04/CCG Application Snapshot_Endoscope.pdf
Surgical instrument oem SURGICAL INSTRUMENT OEM E N D O S C O P E C O M P O N E N T S • Functional differentiation • ISO 10993 compliance • Excellent resistance to steam sterilization • Excellent chemical resistance • Delivered a variety of bright, distinguishing color choices for functional differentiation • Minimized color deviation • Provided a biocompatible solution • Offered low MOQ with flexible supply Transcend Premier PPSU Healthcare Pre- colored Solutions KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2022-09/Omnicolor Case Study Cable Reel.pdf
POWER & LIGHTING MANUFACTURER/MOLDER S M A L L C A B L E R E E L • Meet color requirement of medium-tone gray for polypropylene (PP) cable reel application • Low cost color development • Short lead time to fit production schedule • Offered readily available standard color (Mid Grey – OC7UFF) to meet customer request • Provided low usage rate of 1% LDR to keep costs down • Shipped colorant sample within one day of inquiry • Allowed sample parts to be molded within three days to accommodate schedule Omnicolor™ Multipurpose Colorants KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2023-12/Complet LFT - Off-Road Seating Shell.pdf
OFF-ROAD VEHICLE MANUFACTURER U N I F I E D S E A T I N G S H E L L • Consolidate parts to reduce manufacturing costs • Maintain performance while replacing metal seating frame with lightweight composite material • High durability to withstand harsh usage environments • Delivered long glass fiber reinforced thermoplastic solution providing metal-like performance with excellent toughness • Lowered component costs with single-piece injection molded seat shell • Utilized global capabilities to meet manufacturing supply chain needs Complēt™ Long Glass Fiber PA66 Composite KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2023-10/Complet LFT Wheelchair Caster Wheels - case study snapshot.pdf
WHEELCHAIR OEM C A S T E R W H E E L • Composite to replace a traditional aluminum caster • Lightweight, strong material that can withstand the rigor of daily use • Corrosion-resistant solution to reduce cost and frequency of maintenance • Formulated two materials that chemically bond seamlessly to minimize slip • Reduced weight by 33% (280g), supporting improved user maneuverability • Offered an injection-moldable alternative to metal that led to a more functional design and reduced vibration Complēt™ Long Carbon Fiber Nylon 6/6 and TPU Formulations KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2023-10/Stat-Tech TPE - Conveyor Belt - Case Study Snapshot.pdf
FOOD PROCESSING BELT MANUFACTURER C O N V E Y O R B E L T • Electrical resistivity of E+8 Ω • FDA and EU 10/2011 food compliant • Designed to meet ATEX standard • Light color (white) • Provided a permanent statically dissipative solution • Met stringent compliance requirements • Reduced manufacturing steps from two-step process to single-step process Stat-Tech™ Thermoplastic Elastomer KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2022-10/OnColor Bio-based Solution - Reform Design Lab - Application Snapshot.pdf
REFORM DESIGN LAB B I O - B A S E D D E S I G N F U R N I T U R E • Matt black color in cellulose fiber filled PLA • 3D-printable material • Possible outdoor use • Fast development to adapt to online requests • Developed custom products that fulfill color, appearance, UV stabilization and material requirements • Provided fast support to answer evolving online demands • Offered small and flexible quantities and suggestions for further colors OnColor™ custom masterbatch and engineered material KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2025-02/case study snapshot -Knee RAIL brace LFT.pdf
PowerPoint Presentation PROSTHETICS AND ORTHOTICS BRAND K N E E R A I L & B R A C E • Replace metal to reduce weight • Update design to achieve slimmer design • Offer excellent strength and modulus properties • Improve durability with better fatigue resistance than incumbent aluminum • Increased design freedom and lightweighting for metal replacement applications while meeting structural needs • Delivered excellent fatigue endurance and moisture resistance for enhanced durability • Achieved cost reduction per part by switching to an injection molding process Complēt Long Carbon Fiber Reinforced Structural Thermoplastics WHY AVIENT?