https://www.avient.com/resources/safety-data-sheets?page=6353
STAN-TONE HCC-107192 BLACK
SF306188-02 EXP4110 UV-TRANS 9444 (T?)
PP FR 8-6 LMS-1000
https://www.avient.com/resources/safety-data-sheets?page=3791
T-BLUE BUTTON 2
LMPA 193361 BLACK
PP FR 8-6 LMS-1000
https://www.avient.com/resources/safety-data-sheets?page=6291
ML-41948 T YELLOW
ML-85431 BLACK
PP FR 8-6 LMS-1000
https://www.avient.com/sites/default/files/2022-04/Avient Acquisition of Dyneema and Q1 2022 Results_0.pdf
NYSE: AVNT)
AVIE NT CORP ORAT ION
S P E C I A L T Y P O R T F O L I O T R A N S F O R M A T I O N
C O N T I N U E S W I T H D Y N E E M A A C Q U I S I T I O N
2 0 2 2 F I R S T Q U A R T E R R E S U L T S
D I S C L A I M E R
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.
Outdoor High Performance) 8 18% 3
Growth in Asia / LATAM 6 3% 2
Other 100 19% 5
Sub-total $1,327 14% $146
Outdoor High Performance Impact (5) (3)
Wage Inflation and Overtime (11)
Other Supply Chain Costs (4)
Synergies 5
Incentives, Other Employee Costs 8
FX (28) (5)
Q1 2022 $1,294 11% $136
Q1 2022 SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
6
Sales Growth Rate
Adjusted
Operating
Income$ millions
Adjusted
EBITDA
Q1 EBITDA BRIDGE
7
Price increases more than
offset raw material and
supply chain impacts
Q1 2021 $ 161
Demand (23)
$ millions
CAI:
Price / Mix 77
Inflation (54)
SEM:
Price / Mix 41
Inflation (26)
Distribution:
Price / Mix 84
Inflation (82)
Net Price Benefit 40
Wage Inflation and Overtime (11)
Other Supply Chain Costs (4)
Synergies 5
Incentives, Other Employee Costs 8
FX (5)
Q1 2022 $ 171
China Lockdowns / Russia Impact $ (7)
Transportation (7)
Outdoor High Performance (3)
Q1 EPS BRIDGE
8
Q1 2021 - Adjusted EPS 0.89$
CAI 0.08
Specialty Engineered Materials 0.06
Distribution 0.00
Corporate Costs 0.02
F/X (0.04)
Segment OI 0.12
Tax Rate (0.02)
Q1 2022 - Adjusted EPS 0.99$
10
15x stronger than steel
Reduces weight by 30% vs. other solutions
Well-maintained global asset base poised to serve growing demand
• Purchase price of $1.48B represents 11.4x multiple of
2022 EBITDA
• Acquisition will expand Avient’s composites and fiber
portfolio with Dyneema®, the World’s Strongest Fiber™
• $415M sales and 30%+ EBITDA margins; Immediately
accretive to pro forma 2022 EPS, adding $0.35
• 1,300 patents globally, ~50% of sales patent protected
• 1,000+ employees across global production network and
dedicated technology centers
• Composites platform will increase from $261M to $680M in
revenue and from $49M to $180M in EBITDA Indicates Dyneema
® location
$175M
(42%)
$65M
(16%)
$175M
(42%)
2022E Sales By Region ($M)
(1) $0.35 EPS excludes intangible amortization
(2) Based on 2022 expected results
(1) (2)
(2)
F I T W I T H F O U R P I L L A R S T R AT E G Y
11
Specialization
• Innovation-led organization with
tremendous intellectual property value in
trademarks, patents and “know-how”
• Deep history of application development
and premium, leading brand with the
World’s Strongest FiberTM
Globalization
• Global customer base with an
established presence across all major
geographic regions
• Global technology centers complement
existing Composites applications and
expertise
Operational
Excellence
• Best-in-class safety performance
• Well-run and maintained asset base fit to
serve future growth
• Highly effective and reliable supply chain
with emphasis on optimizing service to
customers
Commercial
Excellence
• Deep customer relationships extend
across the value chain and drive ability
to grow
• Offer a full suite of services with an active
role in design, development and
commercialization
People
Experienced and
talented associates
with a passion for
safety, specialization
and winning
DY N E E M A ® OV E RV I E W
K E Y I N D U S T R I E S
PERSONAL PROTECTION
Military • Law Enforcement • First
Responders Body Armor • Helmets •
Vehicle Protection
$215M
MARINE & SUSTAINABLE
INFRASTRUCTURE
Towing / Mooring • Aquaculture •
Floating Wind • Offshore Cranes
$130M
CONSUMER
Consumer • Outdoor High Performance •
Safety Equipment
$70M
12 Figures reflect 2022 expected sales
MIFOverview Competition
Value chain &
Go-to-market
Strategy Innovation Financials
TECHNOLOGY
13
1,200 1,300
2,500
Avient Dyneema Combined
Patents
• True specialty business – the World’s Strongest Fiber™
• Deep history of application development with customers,
strongest in the industry
• The only UHMwPE (ultra-high molecular weight polyethylene)
fiber producer that is backward integrated
o Provides innovation advantage through control of all steps of the process
• Complementary with our existing reinforced film expertise
(PolyStrand) and engineered fiber presences (Fiber-Line)
WINNING PROPERTIES
Ultra high strength vs. weight Highly flexible
Floats on water Chemically inert; no smell/taste and non-toxic
High resistance to UV radiation Self-lubricating, with low friction
One-of-a-kind technology
®
FORMULATION PROCESS
14
• Like Avient, Dyneema® offers similar
core competencies around formulation
and material science
• Technology that combines polymers and
fibers to provide specialized, high
performing solutions for customers
• Design capabilities ensure that
applications are highly customized for
the specified end use
DYNEEMA ® IN THE VALUE CHAIN
15
UHMwPE
Fiber / Tapes
Military Personnel,
Law Enforcement
Heavy Marine,
Offshore Wind Energy
and Mooring,
Aquaculture
Outdoor,
Footwear, Apparel,
Inflatables
• Material Science
• Formulation
• Service
INTERMEDIATE MANUFACTURING
(CUSTOMERS) OEM / APPLICATION
DEMAND TRENDS
16
• Military spending and near-term demand for higher performing personal protection
products (like Dyneema®) expected to increase
o European NATO members annual defense spend expected to increase by up to 20%(1)
o Accelerated launch of next generation technology in North America
• Policy-driven demand for sustainable energy; growth in floating offshore wind
farms which require advanced, durable technology
o Offshore wind expected to grow at a CAGR of 32% with the level of annual installations
quadrupling over the next five years(2)
• Continued investment in aquaculture as a sustainable food source(3)
• Strong demand in outdoor high performance space across niche consumer
applications aligns with 10% growth assumption for Avient’s Composites portfolio
Sources:
(1) “Funding NATO”, NATO.int (April 1, 2022)
(2) “Global Wind Report 2021”, Global Wind Energy Council
(3) “Aquaculture Supports a Sustainable Earth”, NOAA Fisheries
17
A L I G N M E N T W I T H
S U S T A I N A B I L I T Y G O A L S
P RO D U C T S
AVIE NT ’S E XIS T ING COM P OS IT E S P ORT F OL IO
D I V E R S E C A P A B I L I T I E S A N D S O L U T I O N S S E R V I N G
M A N U F A C T U R E R S A N D O E M S
LFT Tapes Laminates/Panels Shapes Pultrusion Engineered Fibers
18
AV I E N T ’ S C O M P O S I T E S P O RT F O L I O
S A L E S A N D E B I T DA
19
$74 $84
$216 $212
$261
$5 $10
$32
$41
$49
$180
0
50
100
150
200
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
$550
$600
$650
$700
$750
2017 2018 2019 2020 2021 2022E
$680
($ in millions)
• Dyneema® acquisition will further
improve Composites EBITDA margins
to 26%
• Dyneema® will complement our
existing portfolio with deep formulation
expertise, innovative culture and
global commercial presence
• Composites will continue to be a key
growth driver to deliver future revenue
growth in excess of GDP
(1) Pro forma for the acquisition of Dyneema®
(1)
D I S T R I BU T I O N D I V E S T I T U R E
C O N S I D E R AT I O N S
D I S T R I BU T I O N H I G H L I G H T S
21
$21
$57
$69
$94
$105
0
50
100
150
2006 2011 2016 2021 2022E
• Leading North American Distribution business with
longstanding blue-chip supplier and customer
relationships
• Commercial excellence and regulatory knowledge have
grown healthcare portfolio to over 25% of sales and
positioned business for long-term growth
• Highly specialized portfolio of engineered polymers along
with sustainable solution offerings
• Leading digital capabilities through Avient Now, allowing
enhanced visibility and 24/7 interface with customers
• 98% free cash flow conversion drives greater than 30%
after-tax return on invested capital (ROIC)
• Potential divestiture allows us to remain modestly
leveraged with net debt to adjusted EBITDA expected to
be 2.9x and positions us for further specialty growth in the
future
EBITDA (in $M)
DY N E E M A ® T R A N S AC T I O N OV E RV I E W
22
- $1.48B net purchase price
- Represents 11.4x expected 2022 EBITDA
- Committed financing in place
- Permanent financing to be combination of available cash on-hand, new
Senior Unsecured Notes, new Senior Secured Term Loan
- Potential proceeds from Distribution divestment could be used to pay down
near-term maturing debt
- Closing expected in second half of 2022, subject to regulatory
approvals and certain customary closing conditions
Transaction
Value
Financing
Closing
Conditions /
Timing
C A P I TA L S T RU C T U R E / L E V E R AG E
23
• Financing commitments secured from Morgan Stanley
and J.P.
Purchase price multiple rapidly declining on strength of
business and synergy capture
(1)
(1)
(1) Financial information is pro forma to include a full year of Clariant Color acquisition
($ in millions)
11.9%
16.2%
2019PF 2021
EBITDA Margins
(1)
S P E C I A LT Y T R A N S F O R M AT I O N
7%
46%
66%
86%
100%
0%
20%
40%
60%
80%
100%
2005 2010 2015 2021 2022 PF
%
o
f A
dj
us
te
d
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)
29
12%
18%
16% 15% 15% 14% 14%
28% 28%
26%
25%
22% 21% 19%
16%
12%
9% 9%
A
vi
en
t T
od
ay
A
vi
en
t P
F
A
V
Y
P
P
G
K
W
R
FU
L
R
P
M C
E
A
LB
FM
C
A
S
H
E
C
L
E
M
N
H
X
L
H
U
N
S
C
L
B
N
R
U
N
V
R
Median: 21%Median: 15%
2 0 2 2 E B I T DA M A RG I N S V S .
https://www.avient.com/resources/safety-data-sheets?page=1586
Maxxam PPH 15G Natural
Maxxam PPC 20T EXT Natural
PP FR 8-6 LMS-1000
https://www.avient.com/sites/default/files/2021-09/avnt-seaport-conference-presentation.pdf
Whether
an additional line at an existing
manufacturing plant, or a new
facility in a growing region, we
ramp-up quickly and cost-efficiently.
29
Capex / Revenue
2021E (%)
AV I E N T I S A SS E T L I G H T
Avient Specialty
Formulators
Other
Chemical/Specialty
Companies
2 2 2 2
3 3 3
4
3
4 4 5 5 5 5
5 6
7
27
A
vi
e
n
t
A
vi
e
n
t
(E
xc
l.
Free cash flow conversion calculated as (EBITDA – Capex) / EBITDA
Median: 81% Median: 78%
H I G H F R E E C A S H F L OW
C O N V E R S I O N
Avient reflects 2021 estimated EBITDA of $580M and excludes one-time synergy capture CAPEX ($20M)
Source: Peer data per Bloomberg market data as of July 28, 2021
87
90
86
82
80 78
73
87
82 82
79 79 78 78 77 76
71
67
46
A
vi
e
n
t
K
W
R
P
P
G
A
V
Y
F
U
L
R
P
M
G
C
P
F
M
C
U
N
V
R
C
E
IF
F
A
S
H
E
C
L
B
N
R
E
M
N
H
X
L
H
U
N
K
R
A
S
C
L
A
L
B
(6)
Source: Peer data per Bloomberg market data as of July 28, 2021
Total Enterprise Value / 2021E EBITDA
Our current valuation with updated
guidance implies an EBITDA multiple
that is below specialty formulator
peers and the median of other
selected chemical / specialty
companies.
With the Clariant Masterbatch
acquisition and divestment of the
PP&S business, our exposure is now
concentrated in less-cyclical and
high-growth markets, with increased
geographic diversification and a more
specialized portfolio that can
significantly expand EBITDA margins.
31
Avient reflects 2021 estimated EBITDA of $580M
O U R VA LUATI O N V E R S U S P E E R S
Avient Specialty
Formulators
Other
Chemical/Specialty
Companies
9.5
18.5
15.1 15.1
14.0
11.0 10.4
29.5
28.2
23.9
18.7
12.4 12.2
11.1
9.3 9.2 9.2
7.6 7.6
6.0
A
vi
e
n
t
K
W
R
P
P
G
A
V
Y
R
P
M
F
U
L
G
C
P
A
L
B
H
X
L
E
C
L
IF
F
F
M
C
B
N
R
A
S
H
S
C
L
E
M
N
U
N
V
R
K
R
A
C
E
H
U
N
Median: 11.1xMedian: 14.6x
S U M M A RY: W H Y I N V E S T I N AV I E N T ?
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?
https://www.avient.com/sites/default/files/2020-07/case-study-one-pager-therma-tech-gas-recovery-heat-exchanger.pdf
© 2019, All Right Reserved
Avient Corporation, 33587 Walker Road, Avon Lake, Ohio USA 44012
B U I L D I N G A N D
C O N S T R U C T I O N S U P P L I E R
H E A T E X C H A N G E R : G A S
R E C O V E R Y
• Resistance to corrosion and fouling
• Good thermal conductivity
• Good pressure resistance
• Compatible with current processing methods – extrusion
• Eliminated the effects of corrosion and
fouling by replacing aluminum
• Improved thermal performance over time
• Developed a customized solution that
utilized the customers existing extrusion
processing methods
Therma-Tech™ Thermally Conductive Formulation
KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2024-06/CCG Application Snapshot_Oil and Gas Cables_Final.pdf
PTFE Wire insulation
ELECTRICAL EQUIPMENT
MANUFACTURER
H I G H - T E M P E R A T U R E C A B L E S
- O I L & G A S I N D U S T R Y
• Formulations suitable for a wide range of cable types, including high-voltage
and self-regulating heating applications
• Fine-tuned and consistent resistivity
• Consistent performance across a wide range of temperatures
• Optimized dispersion for ease of processing
• Provided tailored solutions for specific conductivity
requirements, protecting cables against damage from
electrostatic discharge (ESD), arc failures, and
temperature fluctuation
• Supplied ESD and conductive fluoropolymer solutions in
PFA, FEP, ETFE and PVDF
• Shared more than 40 years of experience in the
processing and formulation of fluoropolymers
• Offered a global manufacturing footprint
Colorant Chromatics Conductive Formulations
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2024-10/ECCOH_ 5702 SEPAP Formulation - Shealth for Riser Cable - Application Snapshot.pdf
CABLE
MANUFACTURER
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 coefficient of friction (CoF)
• Reduced overall cable weight cable by
reducing the jacket thickness from 550µm to
350µm
• Increased the lifetime value of the cable by
providing superior chemical and UV resistance
• Provided low CoF on the inner layer, making
the solution suitable for use with micro ducts
as it’s easier to blow cables inside
ECCOH LSFOH 5702 SEPAP Formulation
KEY REQUIREMENTS
WHY AVIENT?