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 2021 2022 $0.87 $0.98 2021 2022 Q2 2022 PERFORMANCE (TOTAL COMPANY) 4 Sales Adjusted Operating Income $1,235 $1,302 2021 2022 + 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 $649 Sales ($ in millions) SEM Distribution $86 $94 Operating Income + 4% + 9% $404 $443 Sales $24 $27 Operating Income + 10% + 13% (1) $241 $244 Sales $37 $37 Operating Income + 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% $134 Q2 2022 SALES AND OPERATING INCOME (TOTAL COMPANY) 6 Sales Growth Rate Adjusted Operating Income$ millions Adjusted 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 7% 46% 66% 86% 100% 0% 20% 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) Healthcare 4% Packaging 8% Consumer 10% Building & Construction 43% Industrial 15% Transportation 14% Energy 4% Telecom. 2% 2006 2022 Pro forma Healthcare 8% Packaging 23% Consumer 21% Building & Construction 10% Industrial 15% Transportation 9% Energy 4% Telecom. 4% Defense 6% END MARKET TRANSFORMATION TO LESS CYCLICAL INDUSTRIES ( W IT H DY N E E MA, E X .
Annual Purchases RAW MATERIAL AND SUPPLY CHAIN UPDATE Based on 2021 purchases, excludes Distribution business SEGMENT DATA U.S. & Canada 50% EMEA 25% Asia 16% Latin America 9% 2021 SEGMENT, END MARKET AND GEOGRAPHY GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 23% Packaging 19% Industrial 16% Building and Construction 10% Telecommunications 4% Energy 2% 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) Transportation 11% Healthcare 15% 24 Packaging 34% Consumer 21% Healthcare 8% Industrial 16% Building & Construction 10% Transportation 9% Energy 1% Telecommunications 1% C O L O R , A D D I T I V E S & I N K S 2021 REVENUE | $2 .4 BILL ION US & Canada 32% EMEA 40% Asia 21% Latin America 7% END MARKET REGION 25 All charts reflect 2021 financials 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 Consumer 27% Healthcare 10% Packaging 7% Telecommunications 16% Transportation 11% Industrial 11% Building & Construction 11% Energy 7% 2021 REVENUE | $919 MILLION END MARKET US & Canada 55% EMEA 25% Asia 20% REGION 26 All charts reflect 2021 financials D I S T R I BU T I O N Healthcare 26% Consumer 23% Packaging 5% Industrial 20% Transportation 16% Building and Construction 8% Energy 1% Telecommunications 1% US & Canada 80% Asia 3% Latin America 17% END MARKET REGION K E Y S U P P L I ER S 2021 REVENUE | $1 .6 B ILL ION 27 All charts reflect 2021 financials TOTA L C O M PA N Y R E G I O N A L S A L E S BY END MARKET Packaging 30% Consumer 26%Healthcare 13% Industrial 14% Building & Construction 5% Telecommunications 2% Energy 2% Asia (16% of sales) Transportation 8% Packaging 32% Consumer 13% Healthcare 5% Industrial 17% Building & Construction 12% Telecommunications 5% Energy 4% EMEA (25% of sales) Transportation 12% 28 Consumer 25% Healthcare 19% Packaging 10% Industrial 17% Building & Construction 10% Telecommunications 4% Energy 2% US & Canada (50% of sales) Transportation 13% Packaging 38% Consumer 33% Healthcare 8% Industrial 10% Building & Construction 5% Telecommunications 1% LATAM (9% of sales) Transportation 5% All charts reflect 2021 financials 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/2022-08/AVNT Aug 2022 Presentation - Jefferies.pdf
WHAT WE DO: MATERIAL SCIENCE 5 CUSTOM FORMULATION SUSTAINABILITY FOR A BETTER TOMORROW Revenue From Sustainable Solutions* 2016-2021 $310 205 140 80 75 45 40 20 $915M2021 Sales ($ in millions) *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 Future Growth Revenue Assumptions From Sustainable Solutions: 8 - 12% 6 S E CO N D Q UART E R 2022 RE S U LT S $122 $134 2021 2022 $0.87 $0.98 2021 2022 Q2 2022 PERFORMANCE (TOTAL COMPANY) 8 Sales Adjusted Operating Income $1,235 $1,302 2021 2022 + 5% Adjusted EPS + 10% + 13% (in millions) (in millions) (+ 10% excluding FX) (+ 16% excluding FX) (+ 20% excluding FX) Q2 2022 SEGMENT PERFORMANCE 9 CAI $624 $649 Sales ($ in millions) SEM Distribution $86 $94 Operating Income + 4% + 9% $404 $443 Sales $24 $27 Operating Income + 10% + 13% (1) $241 $244 Sales $37 $37 Operating Income + 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% $134 Q2 2022 SALES AND OPERATING INCOME (TOTAL COMPANY) 10 Sales Growth Rate Adjusted Operating Income$ millions Adjusted EBITDA Q2 EBITDA BRIDGE 11 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) 12 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.
Global Compact & fulfilled Communication of Progress (COP) requirements • New Sustainability Strategy overview page including our 2022 AIP ESG metrics • New ESG Performance page with ESG ratings, awards, and certifications • Increased disclosures on carbon emissions, including disclosure of Climate Change Scenario Analysis • Added new Product Stewardship and Chemical Management policies • Enhanced data reporting for Workforce Demographics • Improved social disclosures on human rights, dependent care and special leave and strategic training management 2021 SUSTAINABILITY REPORT Launching integrated sustainability website in parallel with report Aligned with leading reporting frameworks 13 ESG PERFORMANCE & AWARDS 14 16th ENVIRONMENTAL SOCIAL GOVERNANCE 2 1 3 (as of 6/30/22) 2022 O U T LO O K $429 $490 2021 2022E $3.05 $3.50 2021 2022E FY 2022 GUIDANCE (TOTAL COMPANY: CURRENT PORTFOLIO) 16 Sales Adjusted Operating Income $4,819 $5,100 2021 2022E + 6% Adjusted EPS + 14% + 15% (in millions) (in millions) (+ 9% excluding FX) (+ 18% excluding FX) (+ 20% excluding FX) 17 CASH FLOW / LEVERAGE ($ millions) 2022E Cash Flow from Operating Activities 400$ Less: Run-Rate CapEx (90) CapEx for Clariant Integration (10) CapEx for IT System Upgrade (15) Total CapEx (115) Free Cash Flow 285$ Adjusted EBITDA 635$ Net Debt / Adjusted EBITDA 1.6x 18 DYNEEMA / DISTRIBUTION UPDATES • Strong performance so far in 2022 in-line with our modeling • Acquisition to be finalized as early as September 1, pending standard regulatory process and closing conditions • Encouraging interest thus far from potential buyers for world-class business with a strong track record • Second round bids due in August DISTRIBUTION 19 PRO FORMA MODELING UPDATE 2022E ($M) Revenue 5,100$ 415$ 5,515$ (1,635)$ 3,880$ Adjusted EBITDA 635 130 765 (109) 656 EBITDA % 12% 31% 14% 7% 17% Adj.
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 20 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 21 • 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 7% 46% 66% 86% 100% 0% 20% 40% 60% 80% 100% 2005 2010 2015 2021 2022 PF % o f A dj us te d EB 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) Healthcare 4% Packaging 8% Consumer 10% Building & Construction 43% Industrial 15% Transportation 14% Energy 4% Telecom. 2% 2006 2022 Pro forma Healthcare 8% Packaging 23% Consumer 21% Building & Construction 10% Industrial 15% Transportation 9% Energy 4% Telecom. 4% Defense 6% END MARKET TRANSFORMATION TO LESS CYCLICAL INDUSTRIES (W ITH DY N EEM A , EX .
https://www.avient.com/sites/default/files/2020-08/trilliant-case-study-1.pdf
* V0 @ 1.5 and 3.0mm FR PC/ABS failed 0% 20% 40% 60% 80% 100% 120% 140% Virex TB Clorox Broad Spectrum CaviCide SaniCloth Plus wipes 1% strain not tested 1% strain not tested FR PC/ABS failed FR PC/ABS failed FR PC/ABS failed FR PC / ABS (1.0% Strain) FR PC / ABS (1.5% Strain) Trilliant HC (1.0% strain) Trilliant HC (1.5% strain) FR PC/ABS failed 0% 20% 40% 60% 80% 100% 120% 140% Virex TB Clorox Broad Spectrum CaviCide SaniCloth Plus wipes 1% strain not tested 1% strain not tested FR PC/ABS failed FR PC/ABS failed FR PC/ABS failed FR PC / ABS (1.0% Strain) FR PC / ABS (1.5% Strain) Trilliant HC (1.0% strain) Trilliant HC (1.5% strain) TENSILE STRENGTH RETENTION AFTER 7 DAYS EXPOSURE Both materials were tested according to ASTM D543 for 7 days.
https://www.avient.com/sites/default/files/2021-11/avient-deutschland-gmbh-cr-extract-nov-8-2021.pdf
Handelsregister B des Amtsgerichts Mannheim Nummer der Firma: Seite 1 von 2 HRB 722072 Nummer der Eintragung a) Firma b) Sitz, Niederlassung, inländische Geschäftsanschrift, empfangsberechtigte Person, Zweigniederlassungen c) Gegenstand des Unternehmens Grund- oder Stammkapital a) Allgemeine Vertretungsregelung b) Vorstand, Leitungsorgan, geschäftsführende Direktoren, persönlich haftende Gesellschafter, Geschäftsführer, Vertretungsberechtigte und besondere Vertretungsbefugnis Prokura a) Rechtsform, Beginn, Satzung oder Gesellschaftsvertrag b) Sonstige Rechtsverhältnisse a) Tag der Eintragung b) Bemerkungen 1 2 3 4 5 6 7 1 a) PolyOne Deutschland GmbH b) Sitz verlegt; nun: Gaggenau Änderung der Geschäftsanschrift: Adolf-Dambach-Straße 2-4, 76571 Gaggenau c) Der Erwerb von Beteiligungen an Gesellschaften jeglicher Art, die Verwaltung von Beteiligungen und eigenem Vermögen sowie die Beratung über den Beteiligungserwerb mit Ausnahme rechtlicher und steuerlicher Beratung. 26.100,00 EUR a) Ist nur ein Geschäftsführer bestellt, vertritt er allein.
Der Sitz ist von Bendorf (Amtsgericht Koblenz HRB 7522) nach Gaggenau verlegt. a) 30.04.2015 Rinke 2 b) Bestellt als Geschäftsführer: Palm, Christoph, Weiswampach / Luxemburg, *16.05.1963 einzelvertretungsberechtigt mit der Befugnis, im Namen der Gesellschaft mit sich im eigenen Namen oder als Vertreter eines Dritten Rechtsgeschäfte abzuschließen. a) 18.11.2016 Adam 3 b) Vertretungsbefugnis geändert bei Geschäftsführer: Kronimus, Holger, Hilgert, *26.01.1968 einzelvertretungsberechtigt mit der Befugnis, im Namen der Gesellschaft mit sich im eigenen Namen oder als Vertreter eines Dritten Rechtsgeschäfte abzuschließen. a) 13.02.2017 Essert 4 a) a) a) Abruf vom 08.11.2021 19:42 Handelsregister B des Amtsgerichts Mannheim Nummer der Firma: Seite 2 von 2 HRB 722072 Nummer der Eintragung a) Firma b) Sitz, Niederlassung, inländische Geschäftsanschrift, empfangsberechtigte Person, Zweigniederlassungen c) Gegenstand des Unternehmens Grund- oder Stammkapital a) Allgemeine Vertretungsregelung b) Vorstand, Leitungsorgan, geschäftsführende Direktoren, persönlich haftende Gesellschafter, Geschäftsführer, Vertretungsberechtigte und besondere Vertretungsbefugnis Prokura a) Rechtsform, Beginn, Satzung oder Gesellschaftsvertrag b) Sonstige Rechtsverhältnisse a) Tag der Eintragung b) Bemerkungen 1 2 3 4 5 6 7 Firma geändert; nun: Avient Deutschland GmbH Die Gesellschafterversammlung vom 21.10.2021 hat die Änderung des Gesellschaftsvertrages in § 1 (Firma, Sitz) beschlossen. 08.11.2021 Martin Abruf vom 08.11.2021 19:42
https://www.avient.com/sites/default/files/2022-11/AVNT Q3 2022 Earnings Presentation - Website Final.pdf
Purchase price multiple rapidly declining on strength of business and synergy capture 7 $133 $201 2019PF 2022E 7 Clariant Color EBITDA Growth Purchase Price Multiple 10.8x 7.0x 6.4x 2019PF 2021 2022E w/ Full Synergies (1) (1) 11.9% 16.3% 2019PF 2022E EBITDA Margins (1) CLARIANT COLOR: TRANSFORMATIONAL ACQUISITION ($ in millions) (1) Financial information is pro forma to include a full year of Clariant Color business SUNBELT PVC Resins DSS 20 Acquisitions $4.8B Investment $2.7B of Annual Revenue 5 Divestments $2.3B Proceeds TPE PP&S HISTORIC SPECIALIZATION THROUGH M&A 8 Distribution DSM Protective Materials BOLT-ON ACQUISITION HISTORY 9 Commercial Resources Operating Income ($ in millions) Operating Margins 259 363 At Acquisition 2022E $40 $139 At Acquisition 2022E 9% 22% At Acquisition 2022E Established Acquisitions (> 7 years) + 40% + 248% + 1300 bps I N V E S T T O G R O W SPECIALTY TRANSFORMATION T O D A Y 7% 46% 67% 86% 100% 0% 20% 40% 60% 80% 100% 2005 2010 2019 2021 2022 PF % o f A d ju st ed E B IT D A • Commodity JVs • Distribution • Performance Products & Solutions • Specialty Businesses (1) Adjusted EBITDA is EBITDA excluding corporate costs and special items (2) Pro forma for the acquisition of Dyneema® and divestiture of Distribution (1 ) (2) 10 Healthcare 4% Packaging 8% Consumer 10% Building & Construction 43% Industrial 15% Transportation 14% Energy 4% Telecom. 2% 2006 2022 Pro Forma Healthcare 8% Packaging 23% Consumer 21% Building & Construction 10% Industrial 15% Transportation 9% Energy 4% Telecom. 4% Defense 6% END MARKET FOCUS ON LESS CYCLICAL INDUSTRIES 11 14.8% 17.6% 21.0% 2018 2020 2022 PF 1.8% 2006 15.3% 16.2% 17.0% 2018PF 2020PF 2022E CAI 2.7% 2006 SEM SPECIALTY EBITDA MARGIN EXPANSION 12 • Portfolio transformation accelerates growth in less cyclical, higher margin end markets • Investments in our composites platform continue to drive margin expansion (1) (1) (1) 2018 and 2020 financial information is pro forma to include a full year of Clariant Color acquisition PORTFOLIO EVOLUTION OVER THE YEARS 13 Adj.
OPS) 16 Sales Adjusted EBITDA $818 $823 2021 2022 + 1% Adjusted EPS + 8% - 3% (in millions) (in millions) (+ 9% excluding FX) (+ 18% excluding FX) (+ 5% excluding FX) Q3 EBITDA BRIDGE (PRO FORMA TOTAL COMPANY) 17 Price increases more than offset raw material and supply chain impacts $ millions CAI: Price / Mix 68 Inflation (44) SEM: Price / Mix 41 Inflation (26) Net Price Benefit 39 Wage and Energy Inflation (14) Clariant Color Integration Synergies 6 Incentives, Other Employee Costs 14 FX (11) Q3 2022 $137 Adjusted EBITDA Q3 2021 $ 142 Demand (39) Q3 2022 SEGMENT PERFORMANCE 18 CAI $587 $566 Sales ($ in millions) $93 $93 EBITDA SEM Pro Forma $326 $319 Sales $70 $62 EBITDA (+ 4% excluding FX) - 4% - 2% (+ 5% excluding FX) Flat (+ 7% excluding FX) - 11% (- 7% excluding FX) $500 $585 Cont.
Sales EBITDA Specialty Engineered Materials Color Additives and Inks $585M$3,635M (1) Transportation 9% Healthcare 8% 23 C O L O R , A D D I T I V E S & I N K S 2022 REVENUE | $2 .3 B ILL ION US & Canada 35% EMEA 40% Asia 20% Latin America 5% END MARKET REGION 24 Packaging 33% Consumer 22% Healthcare 9% Industrial 15% Transportation 8% Building & Construction 11% Telecommunications 1% Energy 1% Figures represent 2022 full year estimates 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 2022 PRO FORMA REVENUE | $1 .3 B ILL ION END MARKET US & Canada 50% EMEA 35% Asia 15% REGION 25 Figures represent 2022 full year estimates Packaging 5% Consumer 19% Healthcare 8%Industrial 16% Transportation 10% Telecommunications 10% Energy 9% Defense 15% Building & Construction 8% Packaging 31% Consumer 28% Healthcare 8% Industrial 13% Building & Construction 5% Telecommunications 3% Energy 2% Defense 1% Asia (20% of sales) Transportation 9% 2022 PROFORMA AVIENT REGIONAL SALES BY END MARKET Packaging 29% Consumer 13% Healthcare 5% Industrial 17% Building & Construction 11% Energy 5% Defense 7% EMEA (35% of sales) Transportation 10% Packaging 14% Consumer 23% Healthcare 11% Industrial 15% Building & Construction 12% Energy 5% Defense 7% US & Canada (40% of sales) Transportation 7% Packaging 49% Consumer 22% Healthcare 8% Industrial 9% Building & Construction 6% Telecommunications 1% LATAM (5% of sales) Transportation 5% Telecommunications 3%Telecommunications 6% Figures represent 2022 full year estimates 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/2024-05/AVNT Q1 2024 Earnings Presentation_For_Website_w_non-GAAP_5_6_1.pdf
Avient corporation first quarter 2024 results and 2024 financial guidance AVIENT CORPORATION F I R S T 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) M AY 7 , 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.
Q1 2023 (TOTAL COMPANY) $846 $829 Q1 23 Q1 24 $134 $143 Q1 23 Q1 24 17.3% Sales Adjusted EBITDA (in millions) $0.63 $0.76 Q1 23 Q1 24 Adjusted EPS (in millions) + 7% + 21% Sales Adjusted EBITDA Adjusted EPS 6 - 2% 15.8% +150 bps * * * Adjusted EBITDA Margin % Q1 2024 SEGMENT PERFORMANCE (COLORS, ADDITIVES & INKS) $537 $515 Q1 23 Q1 24 $91 $97 Q1 23 Q1 24 18.8% Sales Adjusted EBITDA (in millions) (in millions) + 7% Sales Adjusted EBITDA 7 - 4% 17.0% +180 bps * * * Adjusted EBITDA Margin % • 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 Q1 23 Q1 24 $64 $73 Q1 23 Q1 24 23.2% Sales Adjusted EBITDA (in millions) (in millions) + 14% Sales Adjusted EBITDA 8 + 1% 20.8% +240 bps * * * Adjusted EBITDA Margin % • 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 13% TiO2 9% Dyestuffs 2% Polyethylene 10%Nylon 5% Polypropylene 4% Styrenic Block Copolymer 4% 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% EMEA 36% Asia 18% Latin America 5% 2023 SEGMENT, END MARKET AND GEOGRAPHY GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 19% Packaging 23%Industrial 16% Building and Construction 9% Telecommunications 4% Energy 5% Defense 7% END MARKET REVENUE $2,007M $358M $1,138M $224M Sales EBITDA Specialty Engineered Materials Color Additives and Inks $502M$3,143M (1) Transportation 10% Healthcare 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 US & Canada 34% EMEA 37% Asia 21% Latin America 8% END MARKET REGION 19 Packaging 34% Consumer 21% Healthcare 8% Industrial 15% Transportation 9% Building & Construction 10% Telecommunications 1% Energy 2% COLOR, ADDITIVES & INKS 2023 REVENUE | $1 .1 BILLION US & Canada 52% EMEA 35% Asia 13% 20 Packaging 5% Consumer 16% Healthcare 6%Industrial 16% Transportation 12% Telecommunications 9% Energy 10% Defense 18% Building & Construction 8% END MARKET REGION SPECIALTY ENGINEERED MATERIALS Packaging 32% Consumer 26% Healthcare 9% Industrial 13% Building & Construction 6% Telecommunications 2% Energy 2% Defense 1% Asia (18% of sales) Transportation 9% 2023 AVIENT REGIONAL SALES Packaging 25% Consumer 13% Healthcare 5% Industrial 18% Building & Construction 9% Energy 5% Defense 8% EMEA (36% of sales)Transportation 13% Packaging 13% Consumer 22% Healthcare 10% Industrial 16% Building & Construction 12% Energy 6% Defense 8% US & Canada (41% of sales) Transportation 9% Packaging 59% Consumer 22% Healthcare 2% Industrial 8% Building & Construction 4% LATAM (5% of sales) Transportation 5% Telecommunications 4% Telecommunications 4% 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.
Three Months Ended March 31, 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 March 31, 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 Three Months Ended March 31, 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/2020-10/auto-injector-application-study.pdf
• Industrial design expertise in ergonomics and human factors • Improve performance and efficiency with the design freedom and easy processing of plastics Avient Corporation 6 7.
Requirements: High density injection molded plastic for weighting and balancing and noise isolation from spring mechanism Solution: Trilliant™ Gravi-Tech™ Density Modified Formulations 7 Soft touch grip 8 Weighted shell Color, Material & Finish Differentiate the same base injector for multiple price points, medications, or even licensing opportunities with body and grip material, color and texture. • Design conceptualization and rendering services can help bring your vision to life and embody your brand • Recommendations on overmolding and texture will optimize your production and performance Avient Corporation 7 Dampener 11 Stopper 12 9 Plunger 10 Avient Corporation 8 Internal Mechanical Performance Performance and reliability are vital when designing for more effective treatments and better patient outcomes.
https://www.avient.com/sites/default/files/2021-01/w9-avient-corporation-july-2020.pdf
See instructions. 6 City, state, and ZIP code Requester’s name and address (optional) 7 List account number(s) here (optional) Part I Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box.
No. 10231X Form W-9 (Rev. 10-2018) AVIENT CORPORATION ✔ 5 D 33587 WALKER ROAD AVON LAKE, OH 44012 3 4 1 7 3 0 4 8 8 7/20/2020
https://www.avient.com/sites/default/files/2023-07/AVNT Q2 2023 Earnings Presentation%5B70%5D.pdf
AVIENT CORPORATION S E C O N D Q U A R T E R 2 0 2 3 R E S U L T S (NYSE: AVNT) J U LY 2 7 , 2 0 2 3 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.
GUIDANCE (TOTAL COMPANY) 7 $845 $824 Guidance Actual $130 $131 Guidance Actual Sales Adjusted EBITDA (in millions) $0.60 $0.63 Guidance Actual Adjusted EPS (in millions) Q2 2023 PERFORMANCE VS.
GUIDANCE (TOTAL COMPANY) 8 15.4% 15.9% Guidance Actual Adjusted EBITDA Margin % Better-than-expected margins driven by: • Favorable mix - strong demand for composite applications • Raw material deflation Q2 EBITDA BRIDGE (TOTAL COMPANY) 9 ($ millions) CAI: Price / Mix 7) Deflation 11) SEM: Price / Mix 2) Deflation 6) Net Price Benefit 26) Wage and Energy Inflation (10) Cost Reductions 13) FX (2) Q2 2023 Actual $131) Adjusted EBITDA Q2 2022 Pro Forma $ 172) Demand (68) • Demand conditions vs. expectations: US & Canada LATAM EMEA Asia • Net price benefit remains greater than wage and energy inflation • Clariant synergies and reduced administrative costs Q2 2023 SEQUENTIAL SALES BY REGION Q 2 2 0 2 3 v s .
https://www.avient.com/sites/default/files/2025-05/AVNT Q1 2025 Webcast Slides_w_non-GAAP.pdf
All Rights Reserved 2025 7 Color, Additives & Inks – Q1 2025 performance Sales 515 520 Q1 2024 Q1 2025 EXCL.
All Rights Reserved 2025 Avient 2024 sales BUSINESS SEGMENTS END MARKETS REGIONS 63% 37% S E M C AI 23% 20% 15% 10% 10% 8% 7% 4% 3% Packaging Telecom Energy Defense Healthcare Building & construction Transportation Industrial Consumer 41% 35% 18% 6% US & Canada Latin America Asia Europe, Middle East and Africa 14Copyright © .
All Rights Reserved 2025 Specialty Engineered Materials END MARKETS REGIONS 20% 17% 14%13% 9% 9% 7% 7% 4% Defense Packaging Telecom Building & construction Transportation Industrial Consumer 54% 33% 13% US & Canada Asia Europe, Middle East and Africa Energy Healthcare Copyright © .