https://www.avient.com/sites/default/files/2024-10/Compensation Committee Charter - Final.pdf
Each Committee member will serve at the pleasure of the Board for such term as the Board
may decide or until such Committee member is no longer a Board member.
For long-term and equity-based incentive plans:
o Review and approve the performance criteria, target awards, payout criteria and
similar award design items for recipients of grants and awards under the plans.
Review and approve the terms of all employment agreements, executive severance plan and
agreements, management continuity agreements and change in control agreements for elected
officers
https://www.avient.com/sites/default/files/resources/PolyOne%25202018%2520Proxy%2520Statement.PDF
Long-Term Incentive.
The
2017 long-term incentive program awards were granted under the Long-Term Incentive Plan.
The SARs have an exercise term of ten years.
https://www.avient.com/sites/default/files/2023-03/Avient Annual Report 2022.pdf
The Term Loan Amendment also
modified the interest rates per annum applicable to the Senior Secured Term Loan due 2026, which are either (i)
Adjusted Term SOFR (as defined in the Term Loan Amendment) plus 3.06% or (ii) a Base Rate (as defined in the
Term Loan Amendment) plus 2.06%.
The other terms and conditions that apply to the 2029 Term Loan are
substantially the same as the terms and conditions that applied to the existing term loan under the Credit Agreement
immediately prior to the Term Loan Amendment.
The
other terms and conditions that apply to the 2029 Term Loan are substantially the same as the terms and conditions
that applied to the existing term loan under the Credit Agreement immediately prior to the Term Loan Amendment.
https://www.avient.com/sites/default/files/2021-03/avient-antitrust-2021-update-english.pdf
Third, whatever the setting, never discuss prices,
terms of sale, output levels, or allocating customers
or markets with any competitor.
Types of vertical
restraints, include:
• Resale Price—An agreement with a customer to fix or
otherwise affect prices, terms, or conditions of resale
Another category of antitrust
offenses (under the Robinson-Patman Act) involves
discrimination in prices or terms of sale.
https://www.avient.com/sites/default/files/2022-11/Avient Announces Third Quarter 2022 Results.pdf
We completed the acquisition of
APM and the sale of our Distribution business, and are using the net proceeds to pay down near-
term maturing debt as previously announced.”
These moves serve us well in the near term as we navigate current
macroeconomic and geopolitical uncertainty and in the future as we are very well positioned to
benefit from longer term demand trends for sustainable solutions.”
In addition, operating income before the effect of special items is
a component of Avient annual and long-term employee incentive plans and is used in debt covenant computations.
https://www.avient.com/sites/default/files/2024-01/AVNT January IR Presentation_w Non-Gaap Recs.pdf
They use words such as "will," “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“believe” and other words and terms of similar meaning in connection with any discussion of future operating or financial condition, performance and/or sales.
Continue fostering our Great Place
to Work® culture
Strategic Objectives
Long Term
Growth
Rates
Growth Drivers
$340
$455
$790
$1,120
2016 2018 2020 2023E
$51
$84
$212
$650
2016 2018 2020 2023E
$108 $113
$231 $230
2016 2018 2020 2023E
$265
$358
$726 $730
2016 2018 2020 2023E
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 2023E
EBITDA Margins
$0.14
$1.93
$2.30
2006 2014 2023E
Adjusted EPS
TOP -T IE R S US TAINABIL IT Y P E RF ORM ANCE
AND RE COGNIT ION
Industry Sustainability Standards
ESG Ratings Performance
1
3
5
87th
94th
percentile
5
Innovation is the lifeblood of a specialty company.
PRIOR YEAR
$790
$710
2022 2023
$107
$112
2022 2023
Sales Adjusted EBITDA
(in millions)
$0.42
$0.47
2022 PF 2023
Adjusted EPS
(in millions)
- 10% + 5% + 12%
Sales Adjusted EBITDA Adjusted EPS
16
$112
$500
Q4 FY
$0.47
$2.30
Q4 FY
Q4 AND FULL YEAR 2023 GUIDANCE
$710
$3,130
Q4 FY
Sales Adjusted EBITDA Adjusted EPS
17
(in millions) (in millions)
Guidance: Free Cash Flow
$180 $180
Prior Guidance Guidance
FREE CASH FLOW & INCREASED DIVIDEND
13th Consecutive Dividend Increase
0.16
0.26
0.42
0.58
0.79
0.85
0.99
1.03
2011 2013 2015 2017 2019 2021 2023 2024
18
S U S T A I N A B I L I T Y D AY
R E C A P
SUSTAINABILITY AS A GROWTH DRIVERLONG-TERM REVENUE GROWTH DRIVERS
60%+
Key Growth
Drivers
Sustainable
Solutions
Composites, Healthcare,
Asia / LATAM
Overlap
Other
(GDP Growth)
Total Company Revenue
Growth Drivers Long-Term Growth Rate
Sustainable Solutions 8–12%
Composites 8–10%
Healthcare 8–10%
Asia / LATAM 5%
Other (GDP growth) 0–2%
Avient 6%
20
SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH
8-12%
Long Term
Growth
50
90
2022 2030
Medical Plastics
Market Size
(in $Billions)
2020 2030
Recycled
Plastics
Virgin
Plastics
Growing Demand
for Recycled
Content
Avient Sustainable
Solutions
18
46
2023 2032
Global Offshore Annual
Wind Installations
(in Gigawatts)
Sources: McKinsey, Bloomberg, Grand View Research
SUSTAINABILITY TRENDS DRIVE
LONG-TERM GROWTH
21
• Transformative acquisitions
combined with divestitures of
more cyclical businesses have
improved margins over 400 bps
since 2018
• 20% long-term margin goal to
be driven by key growth drivers,
with sustainable solutions
playing a meaningful role
5.4%
11.5%
16.0%
2006 2018 2023E Recovery Growth
Drivers
Strategic
Objective
20%+
+1%+
+3%+
ADJUSTED EBITDA MARGIN EXPANSION
22
• 6% annualized long-term sales growth leveraging
sustainable solutions, composites, healthcare, and
emerging regions
• Expand EBITDA margins to 20%
• Deliver annual EBITDA and EPS growth of
10% and 15%
• Maintain asset-light, 80% free cash flow conversion
profile and be valued as a specialty formulator
• Continue fostering our Great Place to Work® culture
CRE AT ING A WORL D-CL AS S
S US TAINABL E ORGANIZ AT ION
23
PEER COMPARISONS
AVIENT IS ASSET LIGHT
Capex / Revenue
2023E (%)
Avient Specialty
Formulators
Other Specialty /
Chemical Companies
Source: Peer data per Bloomberg as of December 29, 2023
Note: Avient reflects 2023 estimated revenue of $3,130 and estimated run-rate CAPEX of $110M.
26
3.5
1.8
2.7
3.1 3.3
3.7
3.0
3.7
4.7 4.8
6.8 6.8
8.7
11.1
A
vi
en
t
K
W
R
FU
L
P
P
G
A
V
Y
R
P
M
FM
C
H
U
N
C
E
E
C
L
H
X
L
A
S
H
E
M
N
S
C
L
FREE CASH FLOW CONVERSION
Source: Peer data per Bloomberg as of December 29, 2023
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/sites/default/files/2023-03/2023 Avient Bookmarked Proxy Statement - FINAL.pdf
Any further gain (or loss) realized by the
participant generally will be taxed as short-term or long-term capital gain (or loss) depending on the
holding period.
Long-Term Incentive.
The SARs have an exercise term of ten years.
https://www.avient.com/sites/default/files/2023-11/AVNT Q3 2023 Earnings Presentation - Website.pdf
They use words such as "will," “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“believe” and other words and terms of similar meaning in connection with any discussion of future operating or financial condition, performance and/or sales.
Additionally, Adjusted EPS excludes the impact of special items and amortization expense
associated with intangible assets.
2
O P E N I N G R E M A R K S
B O B P A T T E R S O N
C H A I R M A N , P R E S I D E N T A N D C E O
Complementary technologies and
customer relationships offer opportunity to
advance commercial strategy
Dyneema®, the world’s strongest fiber™, to
accelerate growth of sustainable, ultralight
and high performance applications
AVIENT PROTECTIVE MATERIALS
FIRST YEAR
4
Composites comprises over half of
Specialty Engineered Materials,
compared to 9% in 2016
Proven history of success in areas
such as outdoor high performance,
defense and sustainable solutions
Composites
44%
56%
2023E
Sales
Collaboration & InnovationComposites as a % of SEM People & Culture
Talented, passionate, and
creative associates drive
continued integration success
and allow two cultures to come
together as one Avient
Lightweight Protective Laminates:
PROJECTILE PROTECTION
Dyneema® Fiber Solutions
Cushioning + Fit + Comfort:
LONG-TERM WEAR
reSound™ Versaflex™ Thermoplastic Elastomers
Strength + Durability + Light-Weighting:
SOLID MOUNTING BRACKETS
Nymax™ Bergamid™ Complēt™ Engineered Materials
Durability + Lubricity:
HELMET LATCHES
Lubri-One™ Internally Lubricated Polymers
Color Consistency and Weatherability
CUSTOMIZED SPECIFICATIONS
Avient Color and Additive Solutions
Antennae Performance
FAST, RELIABLE CONNECTIONS
PREPERM™ Low-Loss Dielectric Thermoplastics
AVIENT PROTECTIVE MATERIALS
C R O S S S E L L I N G O P P O R T U N I T I E S
Wired Connections
CONSTANT COMMUNICATION
Syncure™ Cross-linkable Wire & Cable Formulations5
6
AVIENT PROTECTIVE MATERIALS
C R O S S S E L L I N G O P P O R T U N I T I E S
6
Q 3 P E R F O R M A N C E
15.4%
16.3%
2022 PF 2023
Results vs.
PRIOR YEAR
$790
$710
2022 2023
$107
$112
2022 2023
Sales Adjusted EBITDA
(in millions)
$0.42
$0.47
2022 PF 2023
Adjusted EPS
(in millions)
- 10% + 5% + 12%
Sales Adjusted EBITDA Adjusted EPS
12
$112
$500
Q4 FY
$0.47
$2.30
Q4 FY
Q4 AND FULL YEAR 2023 GUIDANCE
$710
$3,130
Q4 FY
Sales Adjusted EBITDA Adjusted EPS
13
(in millions) (in millions)
Guidance: Free Cash Flow
$180 $180
Prior Guidance Guidance
FREE CASH FLOW & INCREASED DIVIDEND
13th Consecutive Dividend Increase
0.16
0.26
0.42
0.58
0.79
0.85
0.99
1.03
2011 2013 2015 2017 2019 2021 2023 2024
14
S U S T A I N A B I L I T Y D AY
R E C A P
SUSTAINABILITY AS A GROWTH DRIVERLONG-TERM REVENUE GROWTH DRIVERS
60%+
Key Growth
Drivers
Sustainable
Solutions
Composites, Healthcare,
Asia / LATAM
Overlap
Other
(GDP Growth)
Total Company Revenue
Growth Drivers Long-Term Growth Rate
Sustainable Solutions 8–12%
Composites 8–10%
Healthcare 8–10%
Asia / LATAM 5%
Other (GDP growth) 0–2%
Avient 6%
17
SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH
8-12%
Long Term
Growth
50
90
2022 2030
Medical Plastics
Market Size
(in $Billions)
2020 2030
Recycled
Plastics
Virgin
Plastics
Growing Demand
for Recycled
Content
Avient Sustainable
Solutions
18
46
2023 2032
Global Offshore Annual
Wind Installations
(in Gigawatts)
Sources: McKinsey, Bloomberg, Grand View Research
SUSTAINABILITY TRENDS DRIVE
LONG-TERM GROWTH
18
• Transformative acquisitions
combined with divestitures of
more cyclical businesses have
improved margins over 400 bps
since 2018
• 20% long-term margin goal to
be driven by key growth drivers,
with sustainable solutions
playing a meaningful role
5.4%
11.5%
16.0%
2006 2018 2023E Recovery Growth
Drivers
Strategic
Objective
20%+
+1%+
+3%+
ADJUSTED EBITDA MARGIN EXPANSION
19
• 6% annualized long-term sales growth leveraging
sustainable solutions, composites, healthcare, and
emerging regions
• Expand EBITDA margins to 20%
• Deliver annual EBITDA and EPS growth of
10% and 15%
• Maintain asset-light, 80% free cash flow conversion
profile and be valued as a specialty formulator
• Continue fostering our Great Place to Work® culture
CRE AT ING A WORL D-CL AS S
S US TAINABL E ORGANIZ AT ION
20
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/PolyOne%25202012%2520Annual%2520Report.pdf
2) Represents estimated contractual interest payments for all short-term and long-term debt.
Š To develop our expected long-term
return on plan assets, we consider our
historical long-term asset return
experience, the expected investment
portfolio mix of plan assets and an
estimate of long-term investment
returns.
Total interest paid on long-term and
short-term borrowings was $45.8 million in 2012, $32.0 million in 2011 and $30.3 million in 2010.
https://www.avient.com/sites/default/files/2023-02/AVNT Q4 2022 Earnings Press Release-1.pdf
Through these investments, we have significantly increased the overall earnings and
margin profile of the company, which will lead to long-term value creation.”
2023 Outlook
“As we begin 2023, we remain focused on executing our strategy, including integrating the APM
business and being prudent and proactive in optimizing our cost structure,” said Jamie A.
They use words
such as “will,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words
and terms of similar meaning in connection with any discussion of future operating or financial
condition, performance and/or sales.
In addition, operating income before the effect of special items is
a component of Avient annual and long-term employee incentive plans and is used in debt covenant computations.