https://www.avient.com/sites/default/files/AVNT February IR Presentation_w_Non-GAAP Recs.pdf
In particular, these include statements relating to future actions;
prospective changes in raw material costs, product pricing or product demand; future performance; estimated capital expenditures; results of current and anticipated market conditions and market strategies; sales efforts; expenses; the outcome of
contingencies such as legal proceedings and environmental liabilities; and financial results.
This is due to the inherent difficulty of forecasting the timing and
amount of certain items, such as, but not limited to, restructuring costs, environmental remediation costs, acquisition-related costs, and other non-routine costs.
PY
$790
$719
$107
$114
Sales Adjusted EBITDA
$0.42
$0.52
- 9% + 7% + 24%
Sales Adjusted EBITDA Adjusted EPS
15
Q4 2023 SEGMENT PERFORMANCE
16
CAI
$491
$459
Sales
$70
$84
SEM
$301
$260
Sales
$55
$49
- 7% - 14%+20% - 11%
Q4 EBITDA BRIDGE
17
$ millions
CAI:
Price / Mix 11
Deflation 14
SEM:
Price / Mix 4
Deflation 9
Net Price Benefit 38
Cost Reductions 13
Wage Inflation (8)
Other (2)
Q4 2023 $114
Adjusted
Q4 2022 $ 107
Demand (34) • Demand was down, but less than in previous
quarters, due to slowing pace of destocking
• Positive net price benefit:
o CAI – Pricing flat with favorable mix from
uptick in packaging and consumer end
markets and raw material deflation
o SEM - Pricing flat with favorable mix from
Composites and raw material deflation
• Cost reductions primarily driven by reduced
administrative costs and cost synergies
2024 G U I DAN CE
2024 GUIDANCE
Full Year 2024 Guidance
Adjusted EBITDA $505 to $535 million
Adjusted EPS $2.40 to $2.65
Interest Expense $105 to $110 million
Adjusted Effective Tax Rate 23% to 25%
Capital Expenditures ~$140 million
19
Q1 Adjusted EPS of $0.68
AP P E N DI X
21
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
2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
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)
23
(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
34%
37%
21%
END MARKET REGION
24
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 BILLION
52%
35%
25
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)
26
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/2024-10/2024 AVNT Q3 Webcast Slides w appendix and non-GAAP.pdf
In particular, these include statements relating to future actions;
prospective changes in raw material costs, product pricing or product demand; future performance; estimated capital expenditures; results of current and anticipated market conditions and market strategies; sales efforts; expenses; the outcome of
contingencies such as legal proceedings and environmental liabilities; and financial results.
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
• Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future;
• The effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks;
• Disruptions or inefficiencies in our supply chain, logistics, or operations;
• Changes in laws and regulations in jurisdictions where we conduct business, including with respect to plastics and climate change;
• Fluctuations in raw material prices, quality and supply, and in energy prices and supply;
• Demand for our products and services;
• Production outages or material costs associated with scheduled or unscheduled maintenance programs;
• Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters;
• Our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends;
• Information systems failures and cyberattacks;
• Amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions;
• Our ability to achieve strategic objectives and successfully integrate acquisitions, including the implementation of a cloud-based enterprise resource planning system, S/4HANA;
• Other factors affecting our business beyond our control, including without limitation, changes in the general economy, changes in interest rates, changes in the rate of inflation, geopolitical conflicts and any recessionary conditions; and
• Other factors described in our Annual Report on Form 10-K for the year ended December 31, 2023 under Item 1A, “Risk Factors.”
This is due to the inherent difficulty of forecasting the timing and amount of certain
items, such as, but not limited to, restructuring costs, environmental remediation costs, acquisition-related costs, and other non-routine costs.
https://www.avient.com/sites/default/files/2020-09/grips-translation-outdoor-application-bulletin.pdf
Adding capital costs to any product
development project is never easy.
You need to add value for your customers
while keeping your production costs down.
Customer Needs: How
Avient TPEs Stack Up
Overmolded
TPE
No Grip/
Molded-In
Texture
Premium Brand
Image/Differentiation Excellent Poor
Premium Selling Price Excellent Poor
Premium
Performance Excellent Poor
Comfort/Ergonomics Excellent Poor
Usability/Safety Excellent Fair
Durability Good Good
Processability Good Good
Total Production Costs $$ $
Raw Material Costs $$ $
www.avient.com
Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2020-08/colormatrix-lactra-sx-product-bulletin_0.pdf
Superior to capital-intensive multilayer preforms,
the light blocking additive can easily be added
to PET using a single-stage process for monolayer
bottles, resulting in lower machinery costs and no
loss in light blocking performance.
The simplicity
of the monolayer injection process can also lead
to reduced production cost and has the potential
to offer lighter-weight bottles due to fewer
restrictions in bottle wall thickness for single layer
constructions.
KEY CHARACTERISTICS
• Design for shelf life, ergonomics
and differentiation
• Lighter weight bottles
• Lower system cost vs. other
rigid packaging
TARGET MARKET AND APPLICATIONS
UHT Dairy Packaging
TECHNOLOGY BENEFITS
• 100% visible light blocking for monolayer
containers
• Recyclable with general PET waste stream,
even though additive is also present
• Lower system cost
• Offers shape differentiation for containers
• Enables container designs that increase ease
of pouring
• Useful for re-sealable containers
• Useful for containers that can be stored flat
after opening
• Offers light-weighting for PET bottle without
reducing light blocking performance
www.avient.com
Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2020-12/maxxam-fr-case-study.pdf
MEETING FR GOALS IN DATA CABLES WITH AN
ALTERNATIVE TO FEP
Maxxam FR materials can provide cost savings and improved
processing capabilities when used in category 5e cables
and above.
THE IMPACT
When compared with FEP, Maxxam FR formulations offer
significant cost savings and improve processing ease.
Upon achieving full-scale production, the manufacturer
was also able to reach line speeds of over 1,000 fpm at
thicknesses of 10 mil or below, while reducing material
costs by 33%.
https://www.avient.com/sites/default/files/2020-10/light-diffusion-case-study.pdf
Also,
the acrylic sheets required an additional process to
cut them to size before thermoforming, which led to
excessive waste and disposal costs.
Instead of purchasing pre-fabricated acrylic
sheet that contained a costly diffusion additive, the
Smartbatch solution enabled the customer to reduce its
material costs by 50%.
This saved the customer over $25,000
in annual material costs in addition to resolving its
toughest design challenges.
https://www.avient.com/sites/default/files/2023-11/Renol Fiber Colorants Deep Black Product Bulletin.pdf
Renol™ Fiber Colorants
Deep Black Colorants for PET Fibers
The textile market, particularly in the automotive
textiles, apparel, and home decor sectors, has
long sought after deep black colorants that offer
exceptional jetness and light fastness without
incurring exorbitant costs.
Our team of fiber
experts provides guidance to ensure that the desired
color intensity and performance are achieved in a
cost-efficient way.
APPLICATIONS
• Automotive textiles and upholstery, e.g., seat
covers, liners, carpets
• Home textiles, e.g., sofa covers, pillows, curtains
• Apparel, e.g., fashion clothing, sportswear
BENEFITS
• Deep and intense black coloration with high
light fastness
• Adapted to polyester fibers including recycled
grades
• Highly efficient formulation to increase
processability and reduce costs
• Excellent washing fastness for textile products
that are frequently washed, e.g., sportswear
• Can be customized to achieve the desired
intensity
PRODUCT BULLETIN
Copyright © 2023, Avient Corporation.
https://www.avient.com/sites/default/files/2021-02/laser-marking-and-percept-case-study.pdf
These ‘pirates’
copied the manufacturer’s products and sold the copies
to unsuspecting customers, which not only ate into
revenue but also raised the cost of sales and the potential
for unjustified product responsibility issues.
As a result, these legal costs became
a significant and completely unforeseen drain on
finances.
Revenue increased, and the
cost to fight lawsuits sank.
https://www.avient.com/sites/default/files/2022-11/AVNT Q3 2022 Earnings Presentation - Website Final.pdf
In particular, these include statements relating to future actions; prospective changes in raw
material costs, product pricing or product demand; future performance; estimated capital expenditures; results of current and anticipated market conditions and market strategies; sales efforts; expenses; the outcome of contingencies such as legal
proceedings and environmental liabilities; and financial results.
This is due to the inherent difficulty of
forecasting the timing and amount of certain items, such as, but not limited to, restructuring costs, environmental remediation costs, acquisition-related costs, and other non-routine costs.
OPS)
16
Sales Adjusted EBITDA
$818 $823
+ 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
Q3 2021 $ 142
Demand (39)
Q3 2022 SEGMENT PERFORMANCE
18
CAI
$587
$566
Sales
$93 $93
SEM Pro Forma
$326 $319
Sales
$70
$62
(+ 4% excluding FX)
- 4% - 2%
(+ 5% excluding FX)
Flat
(+ 7% excluding FX)
- 11%
(- 7% excluding FX)
$500
$585
$2.60
$2.95
FULL YEAR 2022 GUIDANCE
19
Sales Adjusted EBITDA
$3,375
$3,635
Adjusted EPS
(in millions) (in millions)
20
SUMMARY
• Executed the plans we laid out earlier this year
• Completed the Dyneema acquisition and Distribution divestiture
amid challenging market conditions
• Paid down debt and expect to finish the year modestly levered at
3.1x net debt to 2022 pro forma adjusted EBITDA
• Expect $200 million of free cash flow in 2022
• Entering an economic slowdown with a portfolio that is better
positioned than ever before
• Updated our EPS guidance to $2.60 from continuing operations
SEGMENT DATA
U.S. & Canada
Latin America
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
21%
Building and
END MARKET REVENUE
(1) Total company adjusted EBITDA of $585M includes corporate costs.
https://www.avient.com/sites/default/files/2024-08/Avient AUG 2024 Investor Presentation- w Non-GAAP.pdf
In particular, these include statements relating to future actions;
prospective changes in raw material costs, product pricing or product demand; future performance; estimated capital expenditures; results of current and anticipated market conditions and market strategies; sales efforts; expenses; the outcome of
contingencies such as legal proceedings and environmental liabilities; and financial results.
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
• Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future;
• The effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks;
• Disruptions or inefficiencies in our supply chain, logistics, or operations;
• Changes in laws and regulations in jurisdictions where we conduct business, including with respect to plastics and climate change;
• Fluctuations in raw material prices, quality and supply, and in energy prices and supply;
• Demand for our products and services;
• Production outages or material costs associated with scheduled or unscheduled maintenance programs;
• Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters;
• Our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends;
• Information systems failures and cyberattacks;
• Amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions;
• Our ability to achieve strategic objectives and successfully integrate acquisitions, including the implementation of a cloud-based enterprise resource planning system, S/4HANA;
• Other factors affecting our business beyond our control, including without limitation, changes in the general economy, changes in interest rates, changes in the rate of inflation, geopolitical conflicts and any recessionary conditions; and
• Other factors described in our Annual Report on Form 10-K for the year ended December 31, 2023 under Item 1A, “Risk Factors.”
This is due to the inherent difficulty of forecasting the timing and amount of certain
items, such as, but not limited to, restructuring costs, environmental remediation costs, acquisition-related costs, and other non-routine costs.