https://www.avient.com/sites/default/files/2024-10/2024 AVNT Q3 Webcast Slides w appendix and non-GAAP.pdf
Microsoft PowerPoint - AVNT Q3 2024 Earnings Presentation_10.29_12PM
AVIENT CORPORATION
T H I R D 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)
O C T O B E R 3 1 , 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
3
Q3 2024 HIGHLIGHTS
• 8.5% organic sales growth driven by broad-based
growth across all regions and most end markets in both
CAI and SEM segments
• Growth stemmed from gaining share, winning new
product specifications and restocking in certain end
markets
• Both segments expanded YoY EBITDA margins by 40
bps each
• Adjusted EPS of $0.65, an increase of 14% vs the
prior year
• Successfully refinanced $650M outstanding senior
notes due 2025; extending maturity to 2031
• Increased dividend 5% to $1.08 on an annualized
basis; 14th consecutive increase
Adj.
FX +8.5%
FX -0.4%
Total Avient +8.1%
Note: Regional Sales Percentages exclude impact of foreign exchange
COLOR, ADDITIVES & INKS SEGMENT
$487
$522
$89
$97
(in millions) (in millions)
7
+ 7%
(+8% excluding FX)
+ 9%
(+11% excluding FX)
18.3%
+40 bps *18.7%
*
* Adjusted EBITDA Margin %
• Sales growth driven by winning
new product specifications in
consumer & packaging, strong
underlying demand in healthcare
and improving demand in building
& construction
• Favorable mix and raw material
deflation contributed to EBITDA
margin expansion
SPECIALTY ENGINEERED MATERIALS SEGMENT
$268
$295
$51
$57
(in millions) (in millions)
8
• Sales growth driven by restocking
in healthcare & consumer end
markets and strong underlying
demand for composite
applications used in building &
construction, energy and defense
end markets
• Favorable mix contributed to
EBITDA margin expansion
+ 10%
(+10% excluding FX)
+ 12%
(+13% excluding FX)
19.0%
+40 bps *19.4%
*
* Adjusted EBITDA Margin %
2024 G U IDA N CE
FY 2024 GUIDANCE
Previous (Aug 6) Current
Adjusted EPS $2.55 to $2.70 $2.63 to $2.67
Adjusted EBITDA $515 to $540 million $525 to $530 million
Interest Expense $105 million $104 million
Adjusted Effective Tax Rate 23% to 25% 23% to 25%
Capital Expenditures &
Investment in S/4 Hana
~$140 million ~$140 million
10
11
• Investor Day to be held December 4, 2024 at
the NYSE, beginning at 10AM
• The focus will be to do a deep dive on the
Company’s strategy
• Registration and microsite will be available in
early November
2024 AVIENT INVESTOR DAY
AP P EN D IX
18
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%
20
(1) Total company sales and adjusted EBITDA of $3,143M and $502M, respectively, include intercompany sales eliminations and corporate costs
2023 REVENUE | $2 .0 B ILL ION
34%
37%
21%
END MARKET REGION
21
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 B ILL ION
52%
35%
22
6%Industrial
12%
10% Defense
Building &
END MARKET REGION
SPECIALTY ENGINEERED MATERIALS
32%
26%
Building &
6%
2% Defense
1%
(18% of sales)
2023 AVIENT REGIONAL SALES
25%
Building &
(36% of sales)Transportation
22%
Building &
12%
6%
US &
Canada
(41% of sales)
59%
22%
Building &
LATAM
(5% of sales)
23
BY END MARKET
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Dollars in millions, except for per share data)
Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders
and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special
items, to assess performance and facilitate comparability of results.
https://www.avient.com/sites/default/files/2021-03/avient-march-ir-fermium_0.pdf
Microsoft PowerPoint - Avient March IR - Fermium
AVIENT CORPORATION
(NYSE: AVNT)
M A R C H 1 8 , 2 0 2 1
I R M E E T I N G S
H O S T E D B Y
F E R M I U M R E S E A R C H
DISCLAIMER
2
Forward-Looking Statements
In this presentation, statements that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
15
2021 O U TLO O K
A S P R O V I D E D O N F E B R U A R Y 9 , 2 0 2 1
W E B C A S T
Synergies
($ 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
17
• 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
18
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
19
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% $360
2021 ORGANIC SALES AND OPERATING INCOME
20 (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(2) COVID Response Applications: facemasks, personal protective equipment
Sales Growth Rate
Adjusted
Operating
Income$ millions
(2)
CASH FLOW AND LEVERAGE
21
• 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
22
• 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
23
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
Whether
an additional line at an existing
manufacturing plant, or a new
facility in a growing region, we
ramp-up quickly and cost-efficiently.
24
Capex / Revenue
2021E (%)
AVIENT IS ASSET LIGHT
Avient Specialty
Other
2
3 2 2 3 3 3 4 3 3 4 4 4 5 5 5 5
7 7 8
23
t
(E
xc
l.
https://www.avient.com/sites/default/files/2024-06/GLS Infant Care Selector_Guide_CN.pdf
GLS Infant Care Selector Guide_CN 6.13-2
https://www.avient.com/sites/default/files/2021-01/w-9-clariant-plastics-coatings-usa-llc-july-20201.pdf
See Regulations section 301.7701-2(c)(2)(iii).
Line 2
If you have a business name, trade name, DBA name, or disregarded
entity name, you may enter it on line 2.
Individual The individual
2.
https://www.avient.com/sites/default/files/AVNT February IR Presentation_w_Non-GAAP Recs.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.
ASHISH KHANDPUR
PRESIDENT & CEO
7
8
PORTFOLIO TRANSFORMATION
8
46%
66%
87%
100%
0%
20%
40%
60%
80%
100%
2005 2010 2015 2020 2023
%
o
f A
dj
us
te
d
EB
IT
D
A
Commodity JVs Distribution Performance Products & Solutions Specialty Businesses
Adjusted EBITDA from Specialty Applications
SUSTAINABILITY AS A GROWTH DRIVER
9
LONG-TERM REVENUE GROWTH DRIVERS
Sustainable
Solutions
Composites, Healthcare,
Asia / LATAM
Overlap
Other
60%+
Key Growth
Drivers
Total Company Revenue
Growth Drivers Long-Term
Growth Rate
Sustainable Solutions 8–12%
Composites 8–10%
Healthcare 8–10%
Asia / LATAM 5%
Other 0–2%
Avient 6%
END MARKET OBSERVATIONS
(% OF COMPANY SALES)
ENERGY
DEFENSE
TELECOMMUNICATIONS
HEALTHCARE
10
TRANSPORTATION
INDUSTRIAL
BUILDING &
CONSTRUCTION 9%
CONSUMER
PACKAGING
23%
11
REGIONAL OBSERVATIONS
(% OF COMPANY SALES)
11
Q 4 2023 RE S U LT S
Q4 2023 PERFORMANCE VS.
PY
$790
$719
$107
$114
Sales Adjusted EBITDA
$0.42
$0.52
- 9% + 7% + 24%
Sales Adjusted EBITDA Adjusted EPS
15
Q4 2023 SEGMENT PERFORMANCE
16
CAI
$491
$459
Sales
$70
$84
SEM
$301
$260
Sales
$55
$49
- 7% - 14%+20% - 11%
Q4 EBITDA BRIDGE
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
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
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
2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
23%Industrial
Building and
END MARKET REVENUE
$2,007M $358M
$1,138M $224M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$502M$3,143M
(1)
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
34%
37%
21%
END MARKET REGION
24
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 BILLION
52%
35%
25
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)
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/2020-12/firecon-cpe-a-processing-guide.pdf
Drop all heating sections 50°F–100°F during extended
downtime, die changes, etc. or keep bleeding if possible.
EXTRUDER
Screw 1" to 6" deep flighted metering screw 3:1 compression ratio
Tooling Tubing type – zero land (for smaller sizes)
Pressure type – for 1" size or larger
Die Tubing type – low DDR
Pressure type – short land
L/D 24:1 or higher
Screen Pack 20/40/20 Mesh
Cooling Trough 120–150 °F (50–65 °C) recommended
Dryer Hot air or desiccant type, 4 hours at 175–185 °F
PROCESSING
Temperature
Wire Preheat None
Feed Zones 290–300 °F
Transition 320–340 °F
Metering 340–350 °F
Head/Die 350–365 °F
Target Melt 350–365 °F
Maximum Melt 390 °F
Purge Compound HDPE
www.avient.com
Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2020-09/surround-processing-guide-2020.pdf
TEMPERATURE
Material Rear
Center
Front
Nozzle
Melt
Mold
Nylon 6,6
540–570
530–560
530–560
540–570
540–570
200–300
(90–150)
Nylon 6,6
30% SS
540–570
530–560
530–560
540–570
540–570
200–300
(90–150)
PBT
510–410
(265–280)
490–540
(255–280)
480–530
480–530
480–530
150–250
(65–120)
PC
14% NiCF
540–570
540–570
530–560
530–560
530–560
150–250
(65–120)
ABS
470–520
460–520
460–520
460–530
(240–275)
460–530
(240–275)
100–200
(40–90)
PP
440–480
(225–250)
440–480
(225–250)
430–470
(220–245)
420–460
(215–240)
420–460
(215–240)
125–175
(50–80)
DRYING
Material Temperature
°F (°C) Time Minimum
Moisture
Maximum
Moisture
Nylon 6,6
14% NiCF 180 (80) 4–5 hours 0.05% 0.20%
Nylon 6,6
30% SS 180 (80) 4–5 hours 0.05% 0.20%
PBT
14% NiCF 250 (120) 6-8 hours 0.02% 0.03%
PC
14% NiCF 250 (120) 3–4 hours 0.02% 0.02%
ABS
14% NiCF 200 (90) 2–4 hours 0.05% 0.10%
PP
14% NiCF 180 (80) 2–4 hours 0.20% 0.30%
Equipment
• Feed throats smaller than 2.5" may cause bridging due to pellet size
- Larger feed throats will be more advantageous with long fiber EMI shielding resins
• General purpose metering screw is recommended
- Mixing/barrier screws are not recommended
• L/D ratio
- 18:1–20:1 (40% feed, 40% transition, 20% metering)
• Low compression ratio
- 2:1–3:1
• Deep flights recommended
- Metering zone 3.5 mm
- Feed zone 7.5 mm
• Check ring
- Three-piece, free-flowing check ring
• General purpose nozzle (large nozzle tips are recommended)
- Minimum orifice diameter of 7/32"
- Tapered nozzles are not recommended for long fiber EMI shielding resins
• Clamp tonnage:
- 2.5–5 tons/in2
Gates
• Large, free-flow gating recommended
- 0.25" x 0.125" land length
- 0.5" gate depth
Runners
• Full round gate design
• No sharp corners
• Minimum of 0.25" diameter
• Hot runners can be used
PROCESSING
Screw Speed Slower screw speeds are recommended to protect fiber length
Back Pressure Lower back pressure is recommended to protect fiber length
Pack Pressure 60–80% of max injection pressure
Hold Pressure 40–60% of max injection pressure
Cool Time 10–30 seconds (depends on part geometry and dimensional stability)
PROCESS CONSIDERATIONS
Recommended – retain fiber length (maximize conductivity)
• Low shear process
• Low screw speed and screw RPM
• Slow Injection speed
• Fill to 99–100% on first stage of injection
- Reduces potential nesting of fibers at gate location
- Improves mechanical performance near gate location
- Promotes ideal fiber orientation
Resin Rich Surface
• Achieved when using a hot mold temperature and longer cure times
≥ Max mold temperature recommendation
• Improved surface aesthetic
• Reduced surface conductivity
• Could reduce attenuation performance in an assembly
Fiber Rich Surface
• Achieved when using a cold mold temperature and shorter cure times
≤ Minimum mold temperature recommendation
• Improved surface aesthetic
• Reduced surface conductivity
• Could improve attenuation performance in an assembly
www.avient.com
Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2020-11/syncure-xlpe-processing-guide.pdf
EXTRUDER
Screw 1½" to 6" Polyethylene type—Maddock; 3:1 compression ratio
Tooling Pressure type
Die On size with 1/8" or less land
L/D 24:1 or higher
Screen Pack 20/60/60/20 Mesh
Cooling Trough Hot 120–150° F (50–65° C)
Feeder Gravimetric type—3 compartment (for color)
Drying Conditions, Catalyst Only Desiccant type, 4 hours at 140° F (60° C)
PROCESSING
Temperature
Wire Preheat 180–250° F (110–120° C)
Feed Zones 330° F (165° C)
Transition 340° F (170° C)
Metering 350° F (177° C)
Head/ Die 360° F (182° C)
Target Melt 350–380° F (177–190°C)
Flame at Die Tip Yes
Line Speed Higher line speed improves mixing and surface smoothness
Purge Compound HDPE
To learn more about Syncure XLPE wire and cable solutions, contact us
at +1.844.4AVIENT (1-844.428.4368)
www.avient.com
Copyright © 2020, Avient Corporation.
https://www.avient.com/products/polymer-colorants/colorant-dispersions/stan-tone-wdn-water-based-dispersions
Store products at temperatures above 32°F (0°C)
https://www.avient.com/products/polymer-colorants/fluoropolymer-color-concentrates/colorant-chromatics-pvdf-colorants
Formulations for material performance over 300°F (150°C).