https://www.avient.com/sites/default/files/2022-07/EHS Committee Charter %28Amended July 2022%29.pdf
Microsoft Word - EHS Committee Charter (Amended July 2022).doc
AVIENT CORPORATION
ENVIRONMENTAL, HEALTH AND SAFETY
COMMITTEE CHARTER
Membership
• Members of the Environmental, Health and Safety Committee (the “Committee”) of
the Board of Directors (the “Board”) of Avient Corporation (the “Company”) will be
appointed by the Board each year
Duties and Responsibilities
The Committee will:
Assessment Process
• Periodically review the results of formal assessments by management of the
environmental liabilities for which the Company has known or probable environmental
exposure and the adequacy of the Company’s financial reserves for environmental
liabilities;
• Semi-annually review the status of health and safety performance of the Company;
• Semi-annually review the status of the Company’s product stewardship programs and
performance;
• Periodically review the Company’s staffing for its environmental, health and safety
assessments and compliance; and
2
• Periodically review new environmental, physical security, health and safety laws and
regulations applicable to the Company’s operations and issues or significant
developments arising from pending regulatory and citizen group activities.
Compliance Programs
• At least annually review the programs and procedures established by the Company that
monitor compliance with the Company’s policies, standards and practices, and laws
and regulations with respect to safety, health, environmental, physical security and
product stewardship, including providing oversight of the systems that are in place to
monitor and mitigate the Company’s carbon footprint and physical risks associated
with climate change;
• Periodically review with management the significant safety, health, environmental,
physical security, and product stewardship risks or exposures faced by the Company, if
any, and steps taken by management to minimize such risks and exposures to the
Company and its constituencies;
• At least annually review the status of the Company’s environmental and safety audit
process, assessing compliance with Company policies, standards, practices, laws and
regulations; and
• Periodically review claims, demands, administrative orders and legal proceedings
against the Company regarding safety, health, environmental, physical security and
product stewardship matters.
https://www.avient.com/sites/default/files/2022-08/Avient Candidates Data Privacy Notice Final - Russian.pdf
https://www.avient.com/sites/default/files/2022-08/Avient Candidates Data Privacy Notice Final - French.pdf
https://www.avient.com/sites/default/files/2022-08/Avient Candidates Data Privacy Notice Final - German.pdf
https://www.avient.com/sites/default/files/2022-08/Avient Candidates Data Privacy Notice Final - Hungarian.pdf
https://www.avient.com/sites/default/files/2024-08/Avient AUG 2024 Investor Presentation- w Non-GAAP.pdf
FX +4.6%
FX -1.5%
Total Avient +3.1%
Note: Regional Sales Percentages exclude impact of foreign exchange
Q2 2024 SEGMENT PERFORMANCE
(COLOR, ADDITIVES & INKS)
$525
$542
$94
$108
19.9%
(in millions) (in millions)
10
17.9%
+200 bps
* Adjusted EBITDA Margin %
• Organic sales growth in all
regions led by Americas
• Raw material deflation combined
with cost reduction actions drove
EBITDA margin expansion
+ 3%
(+5% excluding FX)
+ 15%
(+17% excluding FX)
Q2 2024 SEGMENT PERFORMANCE
(SPECIALTY ENGINEERED MATERIALS)
$301
$308
$60
$64
20.6%
(in millions) (in millions)
11
19.8%
+80 bps
* Adjusted EBITDA Margin %
• Sales growth in consumer,
healthcare and building &
construction end markets offset
by weaker demand in
telecommunications
• EBITDA margin expansion
driven by positive end market
mix as well as raw material
deflation
+ 2%
(+4% excluding FX)
+ 7%
(+8% excluding FX)
2024 G U IDA N CE
FY 2024 GUIDANCE
Previous (May 7) Current
Adjusted EBITDA $510 to $535 million $515 to $540 million
Adjusted EPS $2.50 to $2.65 $2.55 to $2.70
Interest Expense $105 million $105 million
Adjusted Effective Tax Rate 23% to 25% 23% to 25%
Capital Expenditures ~$140 million ~$140 million
13
Q3 2024: Adjusted EPS of $0.62
14
Highlights
• Provides performance updates on 2030
Sustainability Goals
• Reduced company’s Scope 1 & 2 GHG emissions
by 48% since 2019
• Highlights ESG performance ratings, certifications,
and awards, including recent upgrades by
Ecovadis to Gold and CDP to A-
• Reflects Great Place to Work® culture focused on
health, safety and employee engagement
2023 SUSTAINABILITY REPORT
14
Sustainability for a
Better Tomorrow
2023
SUSTAINABILITY REPORT
15
• Investor Day to be held December 4, 2024 in
New York, NY
• The focus will be to do a deep dive on the
Company’s strategy
• Further details to be communicated
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%
2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
19%
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)
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/2020-10/2020-gravi-tech-design-guide-.pdf
VALUE SOLUTION
Improve safety and reduce costs with
Gravi-Tech formulations
When Gravi-Tech polymer metal composites are
substituted for lead, manufacturers can avoid
the regulatory, disposal and employee exposure
challenges associated with lead.
If
the material is shear-sensitive, consult the
material data sheet or processing guide for
instructions to set recovery time
• The cooling time should only be 1–2 seconds
longer than the screw recovery time, unless
dictated by dimensional stability or part
thickness
Minimize Clamp Pressure
This step is done to reduce the amount of energy
used by the machine
Shot Size = 1.00 + .10 =
1.10, Transfer Position = .50 + .10 = .60
Set Safeties
This step is to ensure the machine will alarm
and alert nearby employees if the machine
malfunctions, or if a part gets stuck
https://www.avient.com/sites/default/files/2023-03/2023 Avient Bookmarked Proxy Statement - FINAL.pdf
Safety and Health
The top priority at Avient is the safety and health of our associates, and our ultimate goal is to operate
injury free.
The second independent source of data that we used to augment the peer proxy analysis was the
Consultant’s analysis of competitive market data relating to other applicable general industries.
The CEO makes his recommendations in conjunction with the marketplace
data.
https://www.avient.com/sites/default/files/2022-04/Sustainable Material Answers_ Recycled PET 2022.pdf
SHEET
RAW MATERIAL
SUPPLIERS
PET BOTTLE
PET PREFORM
THERMOFORMERS BRAND
OWNERS
RETAILERS
CONSUMERS
LOCAL WASTE
MANAGEMENT
SORTING
COMPANIES
RECYCLING
COMPANIES
REGULATION
BODIES
NIAS
COMPLIANT
Why is PET
so Popular?
Sheet & Film—Sheets and films made
of PET are another major use case.
PET
sheets can be used to make a variety of
plastic products and film is often used
for tape backing, plastic wrap, medical
packaging, and protective coating on
windows.
https://www.avient.com/sites/default/files/2023-07/AVNT Q2 2023 Earnings Presentation%5B70%5D.pdf
Global Compact
• Highlights ESG Performance, including
ratings, awards, and certifications
• Features increased carbon emissions
disclosures, including Climate Change Scenario
Analysis and Scope 3 emissions data
• Outlines Sustainable Supplier Program,
designed to enable supplier evaluation &
collaboration
• Reflects Great Place To Work® culture focused
on safety, employee engagement and
advancing diversity, equity and inclusion
2022 SUSTAINABILITY REPORT
15
Avient Confidential 16
• Virtual presentation to be held
September 20, 2023
• Leadership will be conducting
an investor-focused
presentation around our
sustainable solutions portfolio
• Deep dive into how we enable
customers to achieve their
sustainability goals
SUSTAINABILITY DAY
16
…are Growing at Twice the Rate as
Conventional Products
Sustainably-Branded Products…
STAKEHOLDER INFLUENCE DRIVES DEMAND
Consumers
Are demanding
recyclability and eco-
conscious products
Governments
Are mandating changes
through legislation, taxes,
and regional accords
Brand Owners
Have committed to
ambitious goals to achieve
sustainability metrics
17
AP P EN D IX
20
Performance
Additives
16%
Pigments
12%
TiO2
Dyestuffs
2%
Polyethylene
Nylon
Polypropylene
Styrenic Block
Copolymer
Other Raw
Materials
33%
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
2022 pro forma results for the acquisition of Avient Protective Materials
RAW MATERIAL BASKET
PEER COMPARISONS
AVIENT IS ASSET LIGHT
Capex / Revenue
2023E (%)
Avient Specialty
Other Specialty /
Note: Avient reflects 2023 estimated revenue of $3,280 and estimated run-rate CAPEX of $110M.
22
3
2
3 3
4 4
3 3
4
5 5
7
8 8
FREE CASH FLOW CONVERSION
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
Avient 2011 and 2018 valuations reflect trailing 12 months EBITDA at December 31 of the respective years.
24
EV / 2023E EBITDA
Historic Multiple
6.5
8.3
10.3
14.4
13.6 13.6
12.4
9.0
20.2
18.2
11.5
10.6
9.7 9.6
8.7 8.3
01
1)
01
8)
02
3)
Avient Specialty
Other Specialty /
SEGMENT DATA
U.S. & Canada
40%
37%
18%
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
20%
24%
Building and
END MARKET REVENUE
$2,355M $402M
$1,300M $272M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$592M$3,653M
(1)
9%
26
(1) Total company sales and adjusted EBITDA of $3,653M and $592M, respectively, include intercompany sales eliminations and corporate costs
2022 REVENUE | $2 .4 B ILL ION
34%
38%
20%
END MARKET REGION
27
34%
21%
Building &
1% Energy
2%
COLOR, ADDITIVES & INKS
2022 PRO FORMA REVENUE | $1 .3 B ILL ION
52%
35%
28
19%
8%Industrial
16%
9% Defense
Building &
END MARKET REGION
SPECIALTY ENGINEERED MATERIALS
32%
27%
14%
Building &
3%
1% Defense
1%
(18% of sales)
9%
2022 PROFORMA AVIENT REGIONAL SALES
27%
14%
17%
Building &
(37% of sales)Transportation
24%
12%
Building &
US &
Canada
(40% of sales)
7%
56%
23%
7%
Building &
1%
LATAM
(5% of sales)
3%
29
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.