https://www.avient.com/sites/default/files/2023-03/AVNT Q2 2022 Earnings Presentation - Website Version.pdf
S EC O N D Q UART ER 2022
RE S U LTS
$122
$134
$0.87
$0.98
Q2 2022 PERFORMANCE
(TOTAL COMPANY)
4
Sales Adjusted Operating Income
$1,235
$1,302
+ 5%
Adjusted EPS
+ 10% + 13%
(in millions) (in millions)
(+ 10% excluding FX) (+ 16% excluding FX) (+ 20% excluding FX)
Q2 2022 SEGMENT PERFORMANCE
5
CAI
$624
$649
($ in millions)
SEM Distribution
$86
$94
+ 4% + 9%
$404
$443
$24
$27
+ 10% + 13%
(1)
$241 $244
$37 $37
+ 1% Flat
(+ 10% excluding FX) (+ 16% excluding FX) (+ 6% excluding FX) (+ 3% excluding FX)
Q2 2021 $1,235 $122
Sustainable Solutions 17 7% 7
Healthcare 23 14% 5
Composites (ex Outdoor High Performance) 10 20% 4
Growth in Asia / LATAM 5 3% 1
Other 69 11% 5
Sub-total $1,359 10% $144
Outdoor High Performance Impact (9) (5)
Wage Inflation and Overtime (7)
Other Supply Chain Costs (2)
Clariant Color Integration Synergies 7
Incentives, Other Employee Costs 4
FX (48) (7)
Q2 2022 $1,302 5% $134
Q2 2022 SALES AND OPERATING INCOME
(TOTAL COMPANY)
6
Sales Growth Rate
Operating
Income$ millions
EBITDA
Q2 EBITDA BRIDGE
7
Price increases more than
offsets raw material and
supply chain impacts
Q2 2021 $ 159
Demand (29)
$ millions
CAI:
Price / Mix 87
Inflation (58)
SEM:
Price / Mix 36
Inflation (24)
Distribution:
Price / Mix 45
Inflation (41)
Net Price Benefit 45
Wage Inflation and Overtime (7)
Other Supply Chain Costs (2)
Clariant Color Integration Synergies 7
Incentives, Other Employee Costs 4
FX (7)
Q2 2022 $ 170
China Lockdowns / Russia Impact $ (14)
Outdoor High Performance (5)
Transportation (5)
8
Q2 '21 Adjusted EPS 0.87$
Color, Additives and Inks 0.11
Specialty Engineered Materials 0.01
Distribution 0.03
Corporate Costs 0.01
F/X (0.05)
Segment OI 0.11$
Interest Expense 0.03
Tax Rate (0.03)
Q2 '22 Adjusted EPS 0.98$
Q2 EPS BRIDGE
Key Updates
• Provided progress on 2030 Sustainability Goals
• Emphasized commitment to U.N.
EPS (ex Amort) 3.96$ 0.13$ 4.09$ (0.58)$ 3.51$
Pro Forma Leverage (12/31/2022E)
Net Debt / Adjusted EBITDA 1.6x 3.4x 2.8x
Forecast Dyneema
Forecast +
Dyneema
Sale of
Distribution
Pro Forma
2022
TWO-YEAR LEVERAGE MODEL
16
3.5x
2.7x
1.6x
2.8x
2.4x
2.0x
2019PF 2020PF 2022E 2022PF 2023E 2024E
Dyneema® AcquisitionClariant Color Acquisition
(1) Pro forma for the acquisition of the Clariant Color business
(2) Pro forma for the acquisition of Dyneema® and potential divestiture of
Distribution, including repayment of senior notes due 2023 and Term Loan
(1) (1) (2)
OUR SPECIALTY JOURNEY CONTINUES
17
• Dyneema® brings leading technology and brand with
the World’s Strongest Fiber™, deep history of
application development and strong
management team focused on specialty
applications
• Dyneema® transaction is aligned with our previously
stated acquisition goal of expanding our composites
and fiber capabilities
• Similar to our other technology expansion
acquisitions, Dyneema® allows us to leverage our
invest-to-grow strategy
• The possible sale of our Distribution business also
presents potential benefits with respect to leverage
and EBITDA margins
46%
66%
86%
100%
0%
40%
60%
80%
100%
2005 2010 2015 2021 2022 PF
%
o
f A
dj
u
st
ed
E
B
IT
D
A
(1
)
JVs Distribution Performance Products & Solutions Specialty
(1) Adjusted EBITDA is EBITDA excluding corporate costs and special items
(2) Pro forma for the acquisition of Dyneema® and potential divestiture of Distribution
(2)
Building &
43%
14%
Telecom.
2006 2022 Pro forma
Building &
Telecom.
Annual Purchases
RAW MATERIAL AND SUPPLY CHAIN UPDATE
Based on 2021 purchases, excludes Distribution business
SEGMENT DATA
U.S. & Canada
50%
Latin America
2021 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
19%
Building and
END MARKET REVENUE
(1) Total company sales and adjusted EBITDA of $4,819M and $581M, respectively, include intercompany sales eliminations and corporate costs
$2,402M
$409M
$919M
$164M
$1,631M
$94M
Sales EBITDA
Distribution
Specialty Engineered Materials
Color Additives and Inks
$581M$4,819M
(1)
24
34%
Building &
1% Telecommunications
C O L O R , A D D I T I V E S & I N K S
2021 REVENUE | $2 .4 BILL ION
32%
40%
Latin America
END MARKET REGION
25
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
27%
Building &
2021 REVENUE | $919 MILLION
END MARKET
55%
REGION
26
D I S T R I BU T I O N
26%
Building and
80%
3%
Latin
America
END MARKET REGION
K E Y S U P P L I ER S
2021 REVENUE | $1 .6 B ILL ION
27
TOTA L C O M PA N Y R E G I O N A L S A L E S
BY END MARKET
30%
26%Healthcare
14%
Building &
2% Energy
(16% of sales)
32%
Building &
(25% of sales)
28
19%
Building &
US &
Canada
(50% of sales)
38%
33%
Building &
LATAM
(9% of sales)
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/2023-08/AVNT August IR Presentation w NonGAAP Recs%5B40%5D.pdf
AVIENT OVERVIEW
OUR VISION: Creating specialized and sustainable material solutions that transform customer challenges into opportunities, bringing new products to life for a better world
2023 Financial GuidanceCompany Overview 2022 Pro Forma Revenue By:
9,700
Employees
104
Manufacturing
Sites
20,000+
Customers
Key Highlights
Premier formulator of specialized
and sustainable material solutions
Asset-light business model, with
flexibility to adapt to customer needs
Best-in-class technology and service
(140+ PhDs / 2,500+ patents)
History of transformation through
successful M&A while consistently
returning cash to shareholders
Poised for continued future growth in
excess of GDP
$3.3B
Revenue
$2.40
$525M
Adjusted EBITDA
16.0%
Adjusted EBITDA Margins
$180M
Free Cash Flow
3.0x
Net Leverage
Over $1B in share
buybacks since 2011
Raised dividend for
12 consecutive years,
a 16% CAGR since
2011
Geography
Segment
Industry
U.S. &
Canada
64%
36%
Specialty
Engineered
Materials
Color
Additives
and Inks
40%
37%
18%
9% 4% 4%
Building &
Energy Telecom
4
CREATING A WORLD-CLASS
SUSTAINABLE ORGANIZATION
1. 6.5% annualized long term sales
growth leveraging sustainable
solutions, composites, healthcare
and emerging regions
2.
Q 1 2 0 2 3
-8%
+6%
-1%
Flat
14
Total Avient -2.6%
2023 G U IDA N CE
$128
$525
$0.56
$2.40
2023 GUIDANCE
16
$800
$3,280
Sales Adjusted EBITDA Adjusted EPS
(in millions) (in millions)
17
• Focused on working capital
management, restructuring
actions to streamline
operations
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Preserve Free Cash Flow to
maintain net leverage
CASH FLOW / LEVERAGE
($ millions) 2023E
Cash Flow from Operating Activities 320$
Less: CapEx (140)
Free Cash Flow 180$
Adjusted EBITDA 525$
Net Debt / Adjusted EBITDA 3.0x
SUSTAINABILITY AS A GROWTH DRIVER
18
LONG-TERM REVENUE GROWTH DRIVERS
Revenue From Sustainable Solutions* 2016-2022
$340M
$405M
$455M
$550M
$790M
$915M
2016 2017 2018 2019 2020PF** 2021 2022PF***
$1,175M
*Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”)
**2020 is Pro Forma to include full year of the Clariant Color business
***2022 is Pro Forma for the acquisition of Avient Protective Materials and the divestiture of Distribution
60%+
Key Growth
Drivers
Sustainable
Solutions
Composites, Healthcare,
Asia / LATAM
Overlap
Other
(GDP Growth)
Total Company Revenue
SUSTAINABILITY REPORT
2022
• Provides progress on 2030 goals
• Reaffirms commitment to U.N.
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
01
1)
01
8)
02
3)
Avient Specialty
Other Specialty /
SEGMENT DATA
U.S. & Canada
40%
37%
18%
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
Building and
END MARKET REVENUE
$2,355M $402M
$1,300M $272M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$592M$3,653M
(1)
9%
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
34%
38%
END MARKET REGION
31
34%
21%
Building &
1% Energy
2%
COLOR, ADDITIVES & INKS
2022 PRO FORMA REVENUE | $1 .3 B ILL ION
52%
35%
32
19%
8%Industrial
16%
9% Defense
Building &
END MARKET REGION
SPECIALTY ENGINEERED MATERIALS
32%
27%
14%
Building &
3%
1% Defense
1%
(18% of sales)
9%
2022 PROFORMA AVIENT REGIONAL SALES
27%
14%
17%
Building &
(37% of sales)Transportation
12%
Building &
US &
Canada
(40% of sales)
7%
56%
23%
7%
Building &
1%
LATAM
(5% of sales)
3%
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/resources/POL%2520IR%2520Presentation%2520Wells%2520Fargo%252005%252008%25202014%2520w%2520non%2520GAAP.pdf
Use of Non-GAAP Measures
Page 3
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 – 2014 2015 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
• 18 consecutive
quarters of double-
digit adjusted EPS
growth
• Shift to faster growing,
high margin, less
cyclical end markets
• Key acquisitions propel
current and future
growth, as well as
margin expansion
• Established aggressive
2015 targets
• Continue specialty
transformation
• Targeting $2.50
Adjusted EPS by 2015,
nearly double 2013
EPS
• Drive double digit
operating income and
adjusted EPS growth
Confirmation of Our Strategy
The World’s Premier Provider of Specialized
Polymer Materials, Services and Solutions
Specialization Globalization
Operational
Excellence
Commercial
Excellence
-150.00%
-50.00%
50.00%
150.00%
250.00%
350.00%
450.00%
PolyOne S&P 500 Russell 2000 Dow Jones Chemical
All time high of
$39.28
April 4th, 2014
• 18 consecutive quarters of
double digit EPS growth
• 49% CAGR adjusted EPS
expansion 2006-2013
• 2013 stock price increased
73% versus 30% growth in the
S&P
• More than seven fold increase in
market cap: $0.5b $3.6b
Strategy and Execution Drive Results
Page 6
Appliance
4%
Building &
Construction
13%
Wire & Cable
9%
Electrical &
Electronics
5%
Consumer
10%Packaging
16%
Industrial
12%
HealthCare
11%
Transportation
18%
Misc.
2%
0.12
0.27 0.21
0.13
0.68
0.82
1.00
1.31
2.50
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
$2.50
2006 2007 2008 2009 2010 2011 2012 2013 2015
Target
Ad
ju
st
ed
E
ar
ni
ng
s P
er
S
ha
re
2013 Revenues: $3.8 Billion
End Markets
2013 Revenues: $3.8 Billion
EPS
Page 7
PolyOne
At A Glance
United
States
67%
Europe
14%
Canada
7% Asia
6%
Latin
America
6%
Specialty
54%
PP&S
18%
Distribution
28%
Mix Shift Highlights Specialty Transformation
Page 8
Old
PolyOne Transformation
*Operating Income excludes corporate charges and special items
2%
34% 43%
62% 64%
0%
20%
40%
80%
2005 2008 2010 2013 Q1 2014 2015
%
o
f O
pe
ra
tin
g
In
co
m
e*
JV's Performance Products & Solutions Distribution Specialty
65-75%
Specialty OI $5M $46M $87M $195M $60M Target
2015
Target
Proof of Performance & 2015 Goals
Page 9
2006 Q1 2014 2015
“Where we were” “Where we are” Target
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 13.8% 12 – 16%
Global Specialty Engineered
Materials 1.1% 11.6% 12 – 16%
Designed Structures & Solutions -- 6.5% 8 – 10%
Performance Products &
Solutions 5.5% 7.7% 9 – 12%
Distribution 2.6% 6.1% 6 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 64% 65 – 75%
3) ROIC* (after-tax) 5.0% 9.4% 15%
4) Adjusted EPS Growth N/A 42% Double Digit
Expansion
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
Bridge to $2.50 Adjusted EPS by 2015
2015 EPS: $2.50
2013 EPS: $1.31
Continued Gross Margin
Expansion
Mergers & Acquisitions
Spartech Accretion
Incremental share buybacks
Ongoing LSS Programs
(50-100 bps/yr)
Accelerated Innovation
& Mix Improvement Several Levers to
Drive Growth
Mid single digit revenue CAGR
Innovation Drives Earnings Growth
$20.3
$52.3
2006 2013
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
*Percentage of Specialty Platform revenue from products introduced in last five years
Page 11
14.3%
30.7%
2006 2013
Specialty Platform
Gross Margin %
19.5%
42.0%
2006 Q1 2014
Healthcare
Consumer
Packaging and Additive Technology
Transportation
Page 12
Unique and Innovative Solutions
https://www.dropbox.com/sh/dwe4t8aacvhb8ui/uD3p_bdglP/Presentation revise pics/GLS Beverage can closure XO 2.jpg
https://www.dropbox.com/sh/dwe4t8aacvhb8ui/-YgkycKypw/Anti-Counterfeiting release & images/GN1979.JPG
60%
100%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2014
Pension Funding**
As of March 31, 2014
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%
** includes US-qualified pension plans only *TTM 3/31/2014
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
Investing in operational and
initiatives that drive
profitability growth
Manufacturing realignment
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
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Earnings Presentation_For_Website_w_non-GAAP_5_6_1.pdf
Q1 2023
(TOTAL COMPANY)
$846 $829
$134
$143
17.3%
(in millions)
$0.63
$0.76
Adjusted EPS
(in millions)
+ 7% + 21%
Sales Adjusted EBITDA Adjusted EPS
6
- 2%
15.8%
+150 bps
Q1 2024 SEGMENT PERFORMANCE
(COLORS, ADDITIVES & INKS)
$537
$515
$91
$97
18.8%
(in millions) (in millions)
+ 7%
7
- 4%
17.0%
+180 bps
• 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
$64
$73
23.2%
(in millions) (in millions)
+ 14%
8
+ 1%
20.8%
+240 bps
• 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
TiO2
Dyestuffs
Polyethylene
10%Nylon
Polypropylene
Styrenic Block
Copolymer
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%
36%
2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
19%
23%Industrial
Building and
7%
END MARKET REVENUE
$2,007M $358M
$1,138M $224M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$502M$3,143M
(1)
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
34%
37%
21%
END MARKET REGION
19
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 BILLION
52%
35%
20
6%Industrial
12%
10% Defense
Building &
END MARKET REGION
SPECIALTY ENGINEERED MATERIALS
32%
26%
Building &
6%
2% Defense
1%
(18% of sales)
2023 AVIENT REGIONAL SALES
25%
Building &
(36% of sales)Transportation
22%
Building &
12%
6%
US &
Canada
(41% of sales)
59%
22%
Building &
LATAM
(5% of sales)
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.
A reconciliation of these measures to their most directly comparable GAAP measures is provided in the tables below.
2024 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income from continuing operations attributable to Avient shareholders $ 49.4 $ 0.54 $ 20.8 $ 0.23
Special items, after-tax 5.5 0.06 22.3 0.24
Amortization expense, after-tax 14.9 0.16 15.1 0.16
Adjusted net income / EPS $ 69.8 $ 0.76 $ 58.2 $ 0.63
Three Months Ended
Reconciliation to EBITDA and Adjusted EBITDA: 2024 2023
Net income from continuing operations – GAAP $ 49.7 $ 21.3
Income tax expense 16.8 7.7
Interest expense, net 26.6 28.8
Depreciation and amortization 44.3 50.5
EBITDA from continuing operations 137.4 108.3
Special items, before tax 6.2 27.3
Depreciation and amortization included in special items (0.5) (1.8)
Adjusted EBITDA $ 143.1 $ 133.8
Adjusted EBITDA as a percent of sales 17.3 % 15.8 %
1
2024 2023
Sales:
Color, Additives and Inks $ 515.3 $ 537.0
Specialty Engineered Materials 314.4 309.7
Corporate (0.7) (1.0)
Sales $ 829.0 $ 845.7
Operating income:
Color, Additives and Inks $ 74.8 $ 65.6
Specialty Engineered Materials 53.4 43.1
Corporate (34.2) (51.6)
Operating income $ 94.0 $ 57.1
Depreciation & amortization:
Color, Additives and Inks $ 21.9 $ 25.8
Specialty Engineered Materials 19.6 21.2
Corporate 2.8 3.5
Depreciation & amortization $ 44.3 $ 50.5
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 96.7 $ 91.4
Specialty Engineered Materials 73.0 64.3
Corporate (31.4) (48.1)
Other (expense) income, net (0.9) 0.7
EBITDA from continuing operations 137.4 108.3
Special items, before tax 6.2 27.3
Depreciation and amortization included in special items (0.5) (1.8)
Adjusted EBITDA $ 143.1 $ 133.8
Adjusted EBITDA as a percent of sales:
Color, Additives and Inks 18.8 % 17.0 %
Specialty Engineered Materials 23.2 % 20.8 %
2
Year Ended
December 31, 2023
Sales:
Color, Additives and Inks $ 2,007.4
Specialty Engineered Materials 1,138.2
Corporate (2.8)
Sales $ 3,142.8
Operating income:
Color, Additives and Inks $ 259.9
Specialty Engineered Materials 142.5
Corporate (205.6)
Operating income $ 196.8
Depreciation & amortization:
Color, Additives and Inks $ 98.3
Specialty Engineered Materials 81.5
Corporate 9.0
Depreciation & amortization $ 188.8
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 358.2
Specialty Engineered Materials 224.0
Corporate (196.6)
Other income, net 5.8
EBITDA from continuing operations 391.4
Special items, before tax 114.6
Interest expense included in special items (2.3)
Depreciation and amortization included in special items (1.9)
Adjusted EBITDA $ 501.8
3
AVNT Q1 2024 Earnings Presentation_For_Website_w_non-GAAP.pdf
Avient corporation�first quarter 2024 results and 2024 financial guidance
DISCLAIMER
Slide Number 3
Regional demand trends-total company�Q1 Sales vs PY (Excluding FX)
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
Slide Number 15
Slide Number 16
Slide Number 17
2023 segment, end market and Geography
Color, Additives & Inks
Specialty Engineered Materials
Slide Number 21
IR Deck - AVNT-2024.03.31 5.06 11AM v2 (002).pdf
Attachment
https://www.avient.com/sites/default/files/2024-10/2024 AVNT Q3 Webcast Slides w appendix and non-GAAP.pdf
EPS
+14%
(+16% ex FX)
Adj.
EPS
+14%
(+16% ex FX)
Adj.
EBITDA
$130 million
+6%
(+7% ex FX)Net Sales
$815 million
+8%
(+8.5% ex FX)
Net Sales
$815 million
+8%
(+8.5% ex FX)
Q 3 2024 R ES U LT S
TOTAL COMPANY
$754
$815
$123
$130
(in millions)
$0.57
(in millions)
Adjusted EBITDA Adjusted EPS
5
+ 8%
(+8.5% excluding FX)
+ 6%
(+7% excluding FX)
+ 14%
(+16% excluding FX)
Sales
6
Q3 2024 RESULTS – ORGANIC REVENUE
GROWTH BY REGION VS PY
6
+9%
+5%
+11%
+27%
Avient ex.
https://www.avient.com/sites/default/files/2020-09/stan-tone-pep-et-product-bulletin.pdf
% Pigment Specific Gravity Color Index Lightfastness
WHITE
10PEP03 Titanium Dioxide, Rutile 60 2.06 PW-6 I/O
YELLOW
12PEP01 Diarylide AAOT GS 20 1.24 PY-14 I
12PEP03 Diarylide HR RS 25 1.23 PY-83 I/O (Mass)
13PEP02 Isoindolinone RS 25 1.31 PY-110 I/O
13PEP03 Benzimidazolone GS 25 1.25 PY-151 I/O (Mass)
81PEP01 Iron Oxide 60 2.07 PY-42 I/O
ORANGE
15PEP03 Benzimidazolone RS 25 1.27 PO-36 I/O
RED
23PEP04 Quinacridone BS 25 1.24 PV-19 I/O
23PEP06 Specialty Naphthol BS 25 1.23 PR-170 I/O (Mass) C
25PEP01 Red 2B, Ca Salt BS 17 1.26 PR-48:2 I/O (Mass)
28PEP01 Red 2B, Ba Salt YS 25 1.32 PR48:1 I/O (Mass)
82PEP01 Iron Oxide, Light YS 27 1.5 PR-101 I/O
82PEP02 Iron Oxide, Light BS 60 2.2 PR-101 I/O
82PEP04 Iron Oxide, Light VYS 60 2.2 PR-101 I/O
82PEP05 Iron Oxide, Dark VBS 60 2.21 PR-101 I/O
BLUE
40PEP01 Phthalocyanine GS 25 1.27 PB-15:3 I/O
40PEP05 Phthalocyanine RS 25 1.27 PB-15 I/O
42PEP02 Ultramarine 35 1.44 PB-29 I/O
49PEP01 Cobalt 31 1.54 PB-28 I/O
GREEN
50PEP01 Phthalocyanine BS 16 1.28 PG-7 I/O
50PEP03 Phthalocyanine YS 16 1.28 PG-7 I/O
59PEP02 Chromium Oxide 70 2.6 PG-17 I/O
VIOLET/MAGENTA
24PEP03 Quinacridone Violet 20 1.24 PV-19 I/O
24PEP04 Ultramarine Violet 50 1.69 PV-15 I/O
24PEP05 Quinacridone Magenta 20 1.24 PR-122 I/O
24PEP06 Benzimidazolone 20 1.23 PV-32 I/O
24PEP07 Carbazole Violet 13 1.22 PV-23 I/O
BROWN/TAN
83PEP01 Iron Oxide, Light 34 1.6 PBr-6 I/O
83PEP02 Iron Oxide, Dark 29 1.51 PBr-6 I/O
BLACK
90PEP01 Furnace - High Jet 24 1.3 PBk-7 I/O
90PEP04 Furnace - Medium 17 1.27 PBk-7 I/O
90PEP05 Iron Oxide 33 1.58 PBk-11 I/O
POLYESTER URETHANE PASTE COLORANTS (PEP)
Stan-Tone Code Pigment Type Approx. % Pigment Specific Gravity Color Index Lightfastness
WHITE
10ET03 Titanium Dioxide, Rutile 56 1.74 PW-6 I/O
YELLOW
12ET01 Diarylide AAOT GS 40 1.15 PY-14 I
12ET03 Diarylide HR RS 20 1.07 PY-83 I/O (Mass)
13ET02 Isoindolinone RS 20 1.11 PY-110 I/O
13ET03 Benzimidazolone GS 20 1.08 PY-151 I/O (Mass)
81ET01 Iron Oxide 60 1.84 PY-42 I/O
ORANGE
15ET03 Benzimidazolone RS 25 1.11 PO-36 I/O
RED
20ET01 Red Lake C YS 30 1.16 PR-53 I
22ET01 Lithol Rubine BS 30 1.17 PR-57:1 I
23ET04 Quinacridone BS 15 1.05 PV-19 I/O
23ET06 Specialty Naphthol BS 30 1.09 PR-170 I/O (Mass) C
25ET01 Red 2B, Ca Salt BS 29 1.15 PR-48:2 I/O (Mass)
28ET01 Red 2B, Ba Salt YS 30 1.18 PR-48:1 I/O (Mass)
82ET01 Iron Oxide, Light BS 60 1.94 PR-101 I/O
82ET02 Iron Oxide, Dark VBS 60 1.95 PR-101 I/O
82ET04 Iron Oxide, Light VYS 60 1.94 PR-101 I/O
BLUE
40ET01 Phthalocyanine GS 25 1.11 PB-15:3 I/O
40ET05 Phthalocyanine RS 20 1.09 PB-15 I/O
42ET02 Ultramarine 55 1.46 PB-29 I/O
49ET01 Cobalt 65 2.02 PB-28 I/O
GREEN
50ET01 Phthalocyanine BS 30 1.2 PG-7 I/O
50ET03 Phthalocyanine YS 25 1.16 PG-7 I/O
59ET01 Chromium Oxide 65 2.12 PG-17 I/O
VIOLET/MAGENTA
24ET03 Quinacridone Violet 20 1.08 PV-19 I/O
24ET04 Ultramarine Violet 60 1.66 PV-15 I/O
24ET05 Quinacridone Magenta 20 1.08 PR-122 I/O
24ET06 Benzimidazolone 25 1.08 PV-32 I/O
24ET07 Carbazole Violet 13 1.05 PV-23 I/O
BROWN/TAN
83ET01 Iron Oxide, Light 64 2.02 PBr-6 I/O
83ET02 Iron Oxide, Dark 60 1.9 PBr-6 I/O
BLACK
90ET04 Furnace - Medium 22 1.12 PBk-7 I/O
90ET05 Iron Oxide 60 1.9 PBk-11 I/O
POLYETHER URETHANE PASTE COLORANTS (ET)
PEP/ET
RS = Red Shade
YS = Yellow Shade
VYS = Very Yellow Shade
BS = Blue Shade
VBS = Very Blue Shade
GS = Green Shade
HR = Heat-Resistant
LIGHTFASTNESS
I = Indoor Only
I/O = Indoor or Outdoor
Mass = Outdoor Masstone Application Only
C = Some Caution Advised
www.avient.com
Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2020-08/tpes-for-automotive-industry-bulletin.pdf
INTERIORS/EXTERIORS
TEMP STANDARD UNITS ONFLEX AF
7210-40B
ONFLEX AF
7210-50B
ONFLEX AF
7210-60B
ONFLEX AF
7210-70B
ONFLEX AF
7210-80B
QUV Exposure
• 1000 Hrs(0.68 W/m2 @ 340nm)
• 2000 Hrs(0.68 W/m2 @ 340nm) 45°C ΔE 0.49
0.38
0.42
0.48
0.21
0.85
0.22
0.14
0.32
0.24
Xenon-Arc Exposure
• 1000 Hrs(0.35 W/m2 @ 340nm) 63°C ΔE 0.63 0.84 0.34 — 0.58
Capillary Viscosity
• 1341/s
• 11170/s
ASTM
D3835 Pa*s 60
11.4
79
15
65
13
48
13.7
73
16
Ozone Resistance ASTM
D1149(16) B Visual No cracks No cracks No cracks No cracks No cracks
Low Temperature Brittleness ISO 812 B °C -63 -62 -62 -62 -62
OnFlex™ AF
• Features: long-term sealing performance, reduced noise and vibration, grippy feel, low gloss, low odor,
excellent UV resistance and weatherability, easy processability, overmolds to polypropylene
• Example applications: trays, door pockets, fasteners, clips, roof rack pads, roof and door trim, and
window encapsulations
The need to innovate is virtually endless.
https://www.avient.com/sites/default/files/2024-09/Maxxam FR Polyolefin Formulations - Product Overview.pdf
KEY CHARACTERISTICS
• UL 94 V-2, V-0, 5VA ratings and elevated
RTI ratings
• GWFI (IEC 60695-11-10) up to 960°C
• Comparative Tracking Index (CTI) PLC 0,
600V ratings
• Injection molding and extrusion grades
• Non-halogen grades available
• Low dielectric performance with selected
formulations
• Good recyclability
• Colorable
MARKETS & APPLICATIONS
Applications that require flame retardant
performance including:
• Transportation: Interior components, seat
components, door panels, aircraft interiors,
railway interiors, boat interiors
• Construction & Building Materials: Cable
insulation, pipes and fittings, insulation
materials
• Consumer – Appliance casings, housings,
covers, fume hoods, battery packages, furniture
• Industrial Equipment: Machine housings
• Energy, Electrical & Electronic, E-Mobility:
Battery frames, electrical housings, connectors
• Telecommunication: Cable management
• Packaging: Transportation of sensitive goods
• Healthcare: Medical device housings and
components
PRODUCT BULLETIN
MAXXAM FR FLAME RETARDANT POLYOLEFIN FORMULATIONS
Non-halogenated Halogenated
PP Homopolymer Copolymer Homopolymer Copolymer
Unit Unfilled Glass Fiber Mineral Unfilled Glass Fiber Mineral Unfilled Glass Fiber Mineral Unfilled Glass Fiber Mineral
Characteristic Talcum Talcum Talcum Talcum
Reinforcement Mass-% 0 5–30 5–30 0 20–30 5-20 0 5–30 5–20 0 5–30 5–20
Colorable – ++ ++ + ++ ++ + + + + + + +
Density g/cm3 0,9–1,08 1,28–1,37 0,98–1,55 0,92–1,06 1,25–1,35 0,95–1,28 0,94–1,04 1,3–1,55 1,01–1,42 0,96–1,01 0,94–1,58 0,95–1,46
Tensile Strength MPa 25–30 30–70 25–35 16–22 40–65 15–25 25-–35 30–70 25–35 20–24 20–55 -25
E-Modulus (Tensile) MPa 1600–2500 2500–8200 2500–4000 800–1200 2000–8000 1600–3000 1300–2000 3000–8900 1900–3500 1000–1400 1200–7500 1500–3000
Izod Impact 23°C notched % 2,0–4,5 3,5–7,5 2,5–4,5 5–40 2,5–18 2,5–6 2,5–4,5 3,5–6,0 3,0–7,0 4,0–40 2,5–16 2,5–10
Max.
https://www.avient.com/sites/default/files/2021-02/avient-ir-presentation-goldman-sachs-and-morgan-stanley.pdf
Purchase price multiple rapidly
declining on strength of business and
synergy capture
(1) (1) (1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
13
SEM
• Composites and Outdoor High
Performance applications drove
positive mix within SEM
• Clariant Masterbatch synergy
realization under way and
expected to drive further margin
expansion in 2021
• Portfolio transformation to high
growth end markets with focus on
sustainable solutions megatrend
10.1%
11.8%
EBITDA MARGIN EXPANSION
Distribution
6.3% 6.0%
15.2%
17.6%
11.1%
12.1%
14.5%
19.8%
13.5%
16.1%
6.4% 6.3%
15.2% 16.2%
Full YearQ4
(2)
(2) Total company reflects adjusted EBITDA margins
SPOTLIGHT: COMPOSITES
14
• SEM delivers a record year in 2020 – 13%
operating income growth and over 200 bps
in margin expansion year-over-year
• Prior investments in composites platform
and outdoor high performance applications
paying off, resulting in substantial growth
over the last two years
SEM
Operating
Income
(OI % of Sales)
$(0.1) $(1.0)
$2.2
$19.1
$26.8
2016 2017 2018 2019 2020
Composites
Performance
(Operating Income)
$83.7
$94.4
2019 2020
(11.2%)
(13.3%)
0.1 0.1
0.2
0.5
0.6
0.7
0.8
0.9
0.9 1.0
11 12 13 14 15 16 17 18 19 20
$19
$160
$338
2011 2019 2020
0.16
0.20
0.26
0.34
0.42
0.50
0.58
0.72
0.79 0.81
0.85
11 12 13 14 15 16 17 18 19 20 21E
FREE CASH FLOW AND CAPITAL ALLOCATION
15
Free Cash Flow Dividends Share Repurchases Deleveraging
3.5x
2.7x
Growing Dividend Cumulative Buybacks Net Leverage
$B
n
$
p
e
r
sh
ar
e
Cash Generation
~$1Bn
REPURCHASED
OVER LAST 10 YEARS
~$350MM
PAID OVER LAST 10 YEARS
~$338MM 2.7x
NET LEVERAGE
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
GREAT PLACE TO WORK!
16
2021 O U TLO O K
Synergies
($ millions)
Initial
Three-Year
Estimate
Revised
Three-Year
Estimate
2021
Expected
Realization
Administrative $ 18 $ 20 $ 15
Sourcing 24 30 15
Operational 18 25 5
Total Synergies $ 60 $ 75 $ 35
CLARIANT INTEGRATION &
COST SYNERGIES UPDATE
18
• Integration going extremely well: synergy target increased from $60 million to $75 million
• $5 million of synergies in 2020 and expect to realize $35 million in 2021
• Relentless focus on guiding principles of safety first, employee collaboration and exceeding
customer expectations
• Future revenue synergies are not part of these estimates and represent additional growth over
the long term
$86
$103
$0.53
$0.70
ORGANIC GROWTH PROJECTIONS – Q1
19
Sales Adjusted Operating Income
$991
$1,090
+ 10%
Adjusted EPS
+ 20% + 32%
(in millions) (in millions)
(1) (1) (1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
$308
$360
$1.93
$2.40
ORGANIC GROWTH PROJECTIONS – FULL YEAR
20
Sales Adjusted Operating Income
$3,783
$4,100
+ 8%
Adjusted EPS
+ 17% + 24%
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(in millions) (in millions)
2020 Pro forma $3,783 $308
Sustainable Solutions 60 11% 24
Healthcare 60 11% 18
Composites 20 10% 10
Growth in Emerging Regions 50 7% 11
Other (GDP growth) 82 5% 11
Sub-total $4,055 7% $382
COVID Response Applications (25) - (11)
Outdoor High Performance Applications (15) - (7)
Asia Payroll Tax Subsidy (COVID) - - (4)
FX Impact 85 - 7
Synergies - - 30
Incentives, Travel, Other Employee Costs - - (37)
2021 Estimated $4,100 8% $360
2021 ORGANIC SALES AND OPERATING INCOME
21 (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(2) COVID Response Applications: facemasks, personal protective equipment
Sales Growth Rate
Operating
Income$ millions
(2)
CASH FLOW AND LEVERAGE
22
• Asset light business generates
significant free cash flow
• Cash generation in 2021 partially offset
by restructuring activities to capture
synergies associated with the Clariant
Masterbatch acquisition
• Cash flow deployed to M&A,
opportunistic share repurchases and
balance sheet / leverage reduction
3.5x
2.7x
2.1x
2019PF 2020PF 2021E
Net Debt / Adjusted EBITDA
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
($ millions) 2020 2021E
Adjusted EBITDA 382 510
Working Capital: Source / (Use) 116 (30)
Cash Taxes (40) (53)
Interest Paid (67) (76)
CapEx (62) (75)
CapEx for Synergy Capture (2) (20)
Restructuring for Synergy Capture (11) (25)
Other 22 19
Free Cash Flow 338 250
23
• 8% increase in sales drives 24% increase in adjusted EPS to $2.40
($2.70 excluding step-up depreciation and amortization) as a result of
continued growth in sustainable solutions and synergy capture
• Clariant synergy capture ahead of schedule: $35M of savings planned from
Clariant Masterbatch acquisition
• Adjusted EBITDA of $510M – highest level in company history
• Deleveraging ahead of schedule – 2.1x net debt to adjusted EBITDA by the
end of 2021
2021 PROJECTIONS
PEER COMPARISONS
24
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
SEGMENT HIGHLIGHTS
U.S. & Canada
50%
26%
16%
Latin America
2020 SEGMENT, END MARKET AND GEOGRAPHY
30
GEOGRAPHY REVENUESEGMENT FINANCIALS
21%Industrial
Building &
Electrical &
END MARKET REVENUE
All data reflects 2020 Pro forma for acquisition of the Clariant Masterbatch business.
(1) The total company sales and EBITDA of $3,783M and $457M, respectively, include intercompany sales eliminations and corporate costs
$2,043M
$331M
$709M
$124M
$1,110M
$70M
Sales EBITDA
Distribution
Specialty Engineered Materials
Color Additives and Inks
$457M$3,783M
35%
14%
Building &
Electrical &
C O L O R , A D D I T I V E S & I N K S
2020 PF REVENUE | $2 .0 BILLION
31%
40%
22%
Latin America
END MARKET REGION
31
2020 figures Pro forma for acquisition of the Clariant Masterbatch business
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
24%
Wire & Cable(1)
24%
Electrical &
13%
Transporation
11%
Building &
2020 REVENUE | $709 MILLION
END MARKET
58%
19%
REGION
32
(1) Approximately 50% of Wire and Cable sales are associated with Fiber Optic Cabling
DI S TR IBU T I ON
2020 REVENUE | $1 .1 B ILL ION
29%
25%
20%
14%
Electrical &
Building &
1%
82%
Latin
America
END MARKET REGION
K E Y S U P P L I ER S
33
AMERICAS EMEA ASIA
26%
19%
13%
16%
Building &
Electrical &
34%
16%Healthcare
17%
Building &
Electrical &
32%
27%
12%
Building &
Electrical &
9%
2020 figures Pro forma for acquisition of the Clariant Masterbatch business
TOTA L C O M PA N Y R E G I O N A L S A L E S
BY END MARKET
(58% of sales) (26% of sales) (16% of sales)
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/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