https://www.avient.com/sites/default/files/2022-02/Versaflex-Handler Housing for Laparoscopic Sealer-Application snapshot.pdf
SURGICAL DEVICE MANUFACTURER H A N D L E H O U S I N G F O R L A P A R O S C O P I C S E A L E R • Excellent adhesion onto PC/ABS • Good aesthetics with soft touch • RoHS, REACH and FDA compliant • Enhanced ergonomics and functionality with improved soft grip • Met performance requirements for wear resistance and colorability • Customized a thermoplastic elastomer (TPE) solution and had with a faster sample response speed than competitor Versaflex™ Overmolding Formulation KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2023-05/Small Order Service Personal Care Application Snapshot.pdf
PERSONAL CARE PRODUCTS MANUFACTURER B O T T L E S A N D C L O S U R E S • Achieve a lower cost on low volume orders • Accommodate a large number of custom designs with rapid color development and matching • Gain quick turnaround for colorant orders • Offered flat pricing with a minimum order quantity (MOQ) of 10 pounds • Eliminated low-volume surcharges, driving leaner inventory management • Implemented shorter development lead times to enable faster market access • Provided 3-day order lead times ColorMatrix™ Small Order Service KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2022-04/Avient Acquisition of Dyneema and Q1 2022 Results_0.pdf
NYSE: AVNT) AVIENT CORPORATION S P E C I A LT Y P O R T F O L I O T R A N S F O R M AT 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 LT S 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.
F I RS T Q UART E R 2022 RE S U LT S $123 $136 2021 2022 $0.89 $0.99 2021 2022 Q1 2022 PERFORMANCE (TOTAL COMPANY) 4 $1,162 $1,294 2021 2022 + 11% (+ 14% excluding FX) Adjusted EPS + 11% (+ 15% excluding FX) + 11% (+ 16% excluding FX) (in millions) (in millions) Sales Adjusted Operating Income Q1 2022 SEGMENT PERFORMANCE 5 CAI $609 $650 Sales ($ in millions) SEM Distribution $89 $95 Operating Income + 7% (+ 10% excluding FX) $363 $433 Sales $24 $24 Operating Income + 19% Flat (1) $217 $245 Sales $34 $40 Operating Income + 7% (+ 11% excluding FX) + 13% (+ 17% excluding FX) + 18% (+ 20% excluding FX) Q1 2021 $1,162 $123 Sustainable Solutions 19 8% 7 Healthcare 32 21% 6 Composites (excl.
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% $136 Q1 2022 SALES AND OPERATING INCOME (TOTAL COMPANY) 6 Sales Growth Rate Adjusted Operating Income$ 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) FIT WITH FOUR PILLAR STRATEGY 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 DYNEEMA® OVERVIEW 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 Valuechain & 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 PRODUCTS AVIENT’S EXISTING COMPOSITES PORTFOLIO 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 AVIENT’S COMPOSITES PORTFOLIO SALES AND EBITDA 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) DISTRIBUTION DIVESTITURE CONSIDERATIONS DISTRIBUTION HIGHLIGHTS 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) DYNEEMA® TRANSACTION OVERVIEW 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 CAPITAL STRUCTURE / LEVERAGE 23 • Financing commitments secured from Morgan Stanley and J.P.
https://www.avient.com/sites/default/files/resources/TRA%2520-%25202016%2520Annual%2520Report%2520for%252015%2520Tideman.pdf
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https://www.avient.com/sites/default/files/2021-10/microbial-susceptibility-of-various-polymers-and-evaluation.pdf
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https://www.avient.com/sites/default/files/2021-02/avient-ir-presentation-goldman-sachs-and-morgan-stanley.pdf
Microsoft PowerPoint - Avient February IR Meetings AVIENT CORPORATION (NYSE: AVNT) F E B R U A R Y 1 7 - 1 8 , 2 0 2 1 I N V E S T O R M E E T I N G S H O S T E D B Y G O L D M A N S A C H S A N D M O R G A N S T A N L E Y 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.
D is t. ) R P M P P G K W R F U L A V Y G C P IF F F M C H X L H U N E M N F O E E C L K R A S C L A S H C E G R A A LB Median: 5%Median: 3% Source: Peer data per Bloomberg market data as of February 5, 2021 Avient reflects 2021 estimated revenue of $4,100M and excludes one-time synergy capture CAPEX ($20M) Avient Specialty Formulators Other Chemical/Specialty Companies Free Cash Flow Conversion (1) 2021E (%) Being asset light helps us to generate strong free cash flow that is in line with specialty formulators.
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. 27 Avient reflects 2021 estimated EBITDA of $510M OUR VALUATION VERSUS PEERS Avient Specialty Formulators Other Chemical/Specialty Companies 9.5 21.1 13.2 13.2 12.0 12.0 9.7 25.2 23.1 14.7 13.5 12.9 11.0 11.0 11.0 10.2 9.6 9.3 9.3 9.1 8.6 8.3 A vi en t K W R A V Y R P M G C P P P G F U L A L B E C L H X L IF F F M C G R A B N R F O E A S H C E S C L U N V R E M N H U N K R A Median: 11.0xMedian: 12.6x SUMMARY: WHY INVEST IN AVIENT?
https://www.avient.com/sites/default/files/2022-05/Application Snapshot NIR _ REJOIN Final.pdf
Application Snapshot NIR _ REJOIN Final COSMETICS BRAND P E R S O N A L C A R E & C O S M E T I C S P A C K A G I N G • Excellent color performance in PCR resin • Combinable with functional additives • Parts manufactured with 100% PCR • Worked with customer to create circular packaging options with glamorous and striking special effects • Provided a solution that enabled added shine, ensuring the customer achieved beautiful packaging without compromising NIR detectability • Ensured the solution was available for many cosmetics packaging types, including bottles, make-up and caps OnColor™ NIR Black & Dark Sortable Colorants & Rejoin™ PCR Masterbatch for Polyolefins KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2024-03/Versalloy TPE Waterproof Seal on Vehicle Accessory.pdf
AUTOMOTIVE OEM W A T E R P R O O F S E A L O N A C C E S S O R Y P A R T • FDA food contact compliance • Color match to OEM-specified gray • 70 Shore A durometer for overmolding to PP • Scratch and mar resistance • Provided material compliant with FDA 21 CFR 177.1210 • Supplied both the base resin and at-press colorant to meet OEM specifications • Offered TPV alloy grade that enabled easy processing and durable surface aesthetics • Specified material in North America with design engineers and supplied out of a facility in China to meet production needs Versalloy™ XL Thermoplastic Elastomer 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/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?