https://www.avient.com/sites/default/files/2023-11/AVNT November IR Presentation.pdf
Maintain asset-light, 80% free cash
flow conversion profile and be
valued as a specialty formulator
5.
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 October 27, 2023
Note: Avient reflects 2023 estimated revenue of $3,130 and estimated run-rate CAPEX of $110M.
26
3.5
1.8
2.7 3.0
3.4 3.7
2.8
3.7
4.6 5.0
6.9 7.0
8.6
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
A
S
H
H
X
L
E
M
N
S
C
L
FREE CASH FLOW CONVERSION
Source: Peer data per Bloomberg as of October 27, 2023
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/news/avient-launches-new-recycled-content-thermoplastic-elastomers-and-metallic-effect-sulfone-solutions-fakuma-2024
Avient Extends Recycled TPE Portfolio with Grades Containing up to 60% Recycled Content, Supporting Global Customers
NEW reSound™ REC GP 7820 TPEs: new grades containing up to 60% recycled content from either PCR streams or a combination of PCR and post-industrial recycled (PIR) raw materials, offering a reduced product carbon footprint (PCF) compared to virgin TPEs.
RECENTLY LAUNCHED reSound™ REC AF 7210 TPEs: specifically developed for automotive interior applications, these new TPE grades from Avient contain 51-59% recycled content, with a minimum of 37% of that content from PCR sources, including closed-loop feedstock.
https://www.avient.com/industries/consumer/consumer-staples
Recycled content TPEs for enhanced sustainability
Recycled content TPEs for enhanced sustainability
https://www.avient.com/investor-center/investor-news/archives?page=35
PolyOne Acquires Certain TPE Assets from Kraton
CLEVELAND, Feb. 3, 2016 /PRNewswire/ -- Expanding on its global footprint and expertise in thermoplastic elastomer (TPE) innovation and design,
https://www.avient.com/news/archives?page=10
Avient Introduces Versaflex™ TF Adhesive TPEs for Textile Fabrics
Avient Introduces Versaflex™ TF Adhesive TPE Solutions for Athletic Textile Fabrics
To download a high-resolution image, please click here
https://www.avient.com/news/archives?page=35
Avient Features TPEs for Food Contact and Sustainability at Cekexpo 2020
Avient Launches Medical TPE Grades Formulated Without Animal Derivatives
https://www.avient.com/knowledge-base/case-study/cleaner-and-safer-internal-automotive-parts
Avient’s Onflex™ Lo TPE and Maxxam™ engineered material formulations are used for interior HVAC air flaps, trays, console carrier and instrument panels, and related interior parts.
Onflex™ Lo TPE helped the same customer replace traditional PU foaming materials for HVAC sealing components, which greatly improved the VOC levels to meet local vehicle interior air quality standards.
https://www.avient.com/news/archives?page=26
Avient Expands reSound™ TPE Portfolio With New Grade Formulated With FDA-Reviewed, Post-Consumer Recycled Material
Caption: Avient expands reSound™ TPE portfolio with a grade formulated using post-consumer recycled content that received No Objection Letter from U
https://www.avient.com/knowledge-base/case-study/utilizing-ocean-plastic-more-circular-economy
Available in North America, injection-moldable reSound™ REC TPEs utilize 9-83% recycled content, and both grades can be overmolded onto polypropylene (PP).
These TPE grades, formulated for consumer applications, can be used in personal care products, lawn and garden tools, outdoor goods, office supplies, footwear, and houseware durables.
https://www.avient.com/news/archives?page=53
PolyOne Improves Vehicle Interior Air Quality with OnFlex™ LO TPEs
DŰSSELDORF, Germany – PolyOne is featuring new OnFlex™ LO thermoplastic elastomers (TPEs) today at K 2016 (Hall 8a, Stand J15K).