https://www.avient.com/sites/default/files/2022-08/AVNT Aug 2022 Presentation - Jefferies.pdf
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; • The current and potential future impact of the COVID-19 pandemic on our business, results of operations, financial position or cash flows, including without any limitation, any supply chain and logistics issues; • Changes in polymer consumption growth rates and laws and regulations regarding plastics in jurisdictions where we conduct business; • Fluctuations in raw material prices, quality and supply, and in energy prices and supply; • 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; • Any material adverse changes in the equity and assets of Koninklijke DSM N.V.’s protective materials business (“the Dyneema Business”); • Our ability to achieve the strategic and other objectives relating to the acquisition of the Dyneema Business and the possible sale of the Distribution business segment; and • Other factors described in our Annual Report on Form 10-K for the year ended December 31, 2021 and our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022 under Item 1A, “Risk Factors.”
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.
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/2021-05/2021-colormatrix-quick-guide-to-liquid-color.pdf
POLYMER/CARRIER COMPATIBILITY IN PET 100 90 80 70 60 50 40 30 20 % light transmission at 500 nm Process window is opened up allowing greater process capability Carrier A: ColorMatrix advanced carrier technology (current) Carrier B: Early-mid 2000s Carrier C: Pre-2000s % dose 4.53.5 4.03.02.52.01.51.00.50 HOW LIQUID HELPS Expertly formulated liquid color systems can deliver significant benefits and greater long- term value in use than alternative colorant systems for an ever expanding range of product applications and production processes.
Main advantages of liquid color systems include: • Excellent statistical distribution for consistently high quality products • Shot-to-shot and batch-to-batch consistency • Single heat history • Minimal wastage due to high level dosing accuracy and product recovery rates • Highly concentrated formulations with capability of very low addition rates • Reduced inventory and storage requirements CHARACTERISTICS OF HIGH PERFORMANCE STABLE LIQUID FORMULATIONS Under storage • Remains stable • Solid-like at low shear • No sedimentation During dosing • Exceeds yield stress • Liquid-like behavior • Flows easily After dispensing • Self-levelling • Rebuilds its structure INSPIRATION AND INSIGHT When developing a brand new color, consulting with your color provider early in the decision process can prove invaluable in gaining insight into which formulation will be most effective and can open up new ideas and opportunities for new colors, color effects, polymer options or finishes that you may not be familiar with.
https://www.avient.com/sites/default/files/2021-05/2021-colormatrix-quick-guide-to-liquid-color_0.pdf
POLYMER/CARRIER COMPATIBILITY IN PET 100 90 80 70 60 50 40 30 20 % light transmission at 500 nm Process window is opened up allowing greater process capability Carrier A: ColorMatrix advanced carrier technology (current) Carrier B: Early-mid 2000s Carrier C: Pre-2000s % dose 4.53.5 4.03.02.52.01.51.00.50 HOW LIQUID HELPS Expertly formulated liquid color systems can deliver significant benefits and greater long- term value in use than alternative colorant systems for an ever expanding range of product applications and production processes.
Main advantages of liquid color systems include: • Excellent statistical distribution for consistently high quality products • Shot-to-shot and batch-to-batch consistency • Single heat history • Minimal wastage due to high level dosing accuracy and product recovery rates • Highly concentrated formulations with capability of very low addition rates • Reduced inventory and storage requirements CHARACTERISTICS OF HIGH PERFORMANCE STABLE LIQUID FORMULATIONS Under storage • Remains stable • Solid-like at low shear • No sedimentation During dosing • Exceeds yield stress • Liquid-like behavior • Flows easily After dispensing • Self-levelling • Rebuilds its structure INSPIRATION AND INSIGHT When developing a brand new color, consulting with your color provider early in the decision process can prove invaluable in gaining insight into which formulation will be most effective and can open up new ideas and opportunities for new colors, color effects, polymer options or finishes that you may not be familiar with.
https://www.avient.com/sites/default/files/2025-01/SEM MCCB Phase Barrier Application Bulletin.pdf
ONFLEX S HF ONFLEX S HF & HF 7001 SYNPRENE RT-5180 ROHS NATURAL Commercial Availability Asia Europe Americas RoHS Compliant Yes Yes Yes Color Natural Natural Natural Hardness 70/80/90 Shore A 50/70/90 Shore A 80 Shore A Flame Retardant Package Non-Halogenated Non-Halogenated Halogenated Processing Method Injection Molding Extrusion Injection Molding Injection Molding Extrusion ELECTRICAL & ELECTRONICS SOLUTIONS REDUCE POSSIBILITY OF MOLDED CASE CIRCUIT BREAKER FAILURE WITH TPE PHASE BARRIERS www.avient.com Copyright © 2025, Avient Corporation.
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/2020-11/2020-trilliant-hc8910-hc8920-processing-guide.pdf
Drying Conditions English (°F) Metric (°C) Temperature 180°F 80°C Duration 2-4 Hours Moisture Level Allowable 0.05%–0.20% Processing Screw Speed Typical screw speeds are recommended Back Pressure Lower back pressure is recommended Pack Pressure 60 - 80% of max injection pressure Hold Pressure 40 - 60% of max injection pressure Cool Time 10 - 30 seconds (depends on part geometry and dimensional stability) www.avient.com Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2020-11/eccoh-processing-guide-spanish.pdf
EXTRUSOR Tornillo 3/4" a 6" para polietileno, de filete sencillo y sin sección de mezcla, Relación de compresión 1.5–2:1 Cabezal De presión media: ángulo de 30° a 40° Dado Del tamaño adecuado para una hilera de 1/8" o menos L/D 24:1 recomendado Paquete de mallas Sin paquete de mallas (opcional según la presión) Canal de enfriamiento 50–65°C recomendado Alimentador Preferentemente gravimétrico—3 compartimentos para cross-linked Secador Desecante, 4 horas a 70°C, para el compuesto ECCOH™ solamente; nunca se debe colocar silano seco en los secadores PROCESAMIENTO Temperatura ECCOH Serie 5000 ECCOH Serie 6000 Precalentamiento del alambre 80–120°C 80–120°C Zonas de alimentación 93°C 135°C Transición 135 °C 163°C Dosificación 150°C 190°C Cabezal/dado 165°C 215°C Material fundido 165–170°C 215–225°C Llama a la salida del dado Sí, según sea necesario Velocidad de la línea Sensible a la cizalla: Observar temperatura de fusión, amperaje del motor y presión Compuesto de purga HDPE +1.844.4AVIENT www.avient.com Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2022-02/Bergamid - Hair Clippers - Application Snapshot.pdf
E L E C T R I C H A I R C L I P P E R S HAIRSTYLING APPLIANCE MANUFACTURER • Regulatory – UL rated flame retardancy • High stiffness and impact resistance • Excellent surface appearance • Colorability/color matching – specific black color • Provided color matching expertise to match glass fiber reinforced formulation to specific customer requirement • Enabled customer to diversify into a new market with a new design of hair clipper for consumers • Developed material quickly - three months from brief to production Bergamid™ A700 glass reinforced flame retardant formulation KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2024-08/OnForce LFT - Street Light Arm - Case Study Snapshot.pdf
LIGHTING MANUFACTURER S T R E E T L I G H T A R M • Limit corrosion • Replace metal insert, maintaining strength • Black color • UV resistance, as used for an outdoor application • Electrical isolation • Utilized simulation services from Avient Design to optimize the product’s design for performance and processability • Achieved required ageing test with the support from R&D and ADTS • Replaced the need to use a metal insert, reducing part weight, cost and simplifying the production process OnForce Long Glass Fiber Reinforced Polypropylene Composites KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2023-06/Omnicolor Brochure.pdf
Transparent acrylic colors PIGMENT COMPATIBILITY The Omnicolor range has been formulated with high quality, heavy metal-free pigments that perform well in a wide range of polymers under most processing conditions.
Calculate using Let Down Percentage: Cost/lb of Concentrate x (Let Down Percentage/100) = Coloring Cost Calculate using Let Down Ratio: Cost/lb of Concentrate – Cost/lb of Resin Let Down Ratio +1 = Coloring Cost TWO WAYS TO CALCULATE COLORING COSTS OMNICOLOR™ TROUBLESHOOTING TWO WAYS TO CALCULATE COLORING COSTS SYMPTOM CAUSE REMEDY Color Variation Shot-to-Shot Poor Omnicolor preblending Pigment has insufficient thermal stability More thorough blending Ensure correct machine temperature control Screw Slip Premature melting of Omnicolor Excessive addition rate Reduce heat in feed zone Check addition rate and reduce if necessary Overall Good Distributive Mixing With Streaks or Dots of Another Color Poor pigment dispersion in concentrate Return concentrate for replacement Black Streaks or Splotches Degraded polymer in barrel Clean screw and barrel Poor Distributive Mixing (Streaking) Insufficient plastification See processing instructions Loss of Color Pigment has insufficient thermal stability Change to more heat stable colorant Ensure correct machine temperature control OMNICOLOR™ PROCESSING TEMPERATURES RECOMMENDED MAXIMUM PROCESSING TEMPERATURES FOR OMNICOLOR IN SELECTED POLYMERS IN °C UK COLOR NO.
COLOR PVC PE/PP/PUR PS ABS ACETAL PBT NYLON PC/PES OM77142 N/A Storm Grey 200+ 280 260+ 260+ 200+ 265 280+ 300+ OM77326 N/A Vapour 200+ 280+ 260+ 280+ 200+ 265 280+ 300+ OM77327 N/A Pigeon 200+ 280+ 260+ 280+ 200+ 265 280+ 300+ OM77330 N/A Shark 200+ 280+ 260+ 280+ 200+ 265 280+ 300+ OM8004 OC8SAH Chocolate Brown ** 200+ 280+ 260+ 280+ 200+ 300+ 280+ 300+ OM8005 OC8SAI Terracotta ** 200+ 280+ 260+ 280+ 200+ 300+ 280+ 300+ OM8018 OC8SAJ Light Brown ** 200+ 280+ 260+ 280+ 200+ 300+ 280+ 300+ OM8021 OC8SAK Mushroom ** 200+ 280+ 260+ 280+ 200+ 300+ 280+ 300+ OM8029 OC8SAL Mid Brown ** 200+ 280+ 260+ 280+ 200+ 300+ 280+ 300+ OM8142 OC8UFK Dark Brown ** 200+ 280+ 260+ 280+ 200+ 300+ 280+ 300+ OM8332 OC8ASM Mahogany ** 200+ 280+ 260+ 280+ 200+ 300+ 280+ 300+ OM8399 OC8SAN Rosewood ** 200+ 280+ 260+ 280+ 200+ 300+ 280+ 300+ OM88721 OC8SAP Toffee ** 200+ 280+ 260+ 280+ 200+ 300+ 280+ 300+ OM88723 OC8SAQ Honey Beige ** 200+ 280+ 260+ 280+ 200+ 300+ 280+ 300+ OM88726 OC8SAR Chestnut Brown **200+ 280 260 260 200+ 280+ 280+ 280+ OM88729 UN88729 Beige **200+ 280+ 260+ 260+ 200+ 300+ 280+ 300+ OM88820 N/A Fudge **200+ 280 260+ 260+ 200+ 265 280+ 300 OM88833 N/A Demerara **200+ 280 260 260 200+ 250+ NS 280 OM88942 N/A Sandstone 200+ 280+ 260+ 280+ 200+ 265 280+ 300+ OM0055 OC9UFA Deep Black 200+ 280+ 260+ 280+ 200+ 265 280+ 300+ OM0086 OC9SAD Ebony # *200+ NS 260 260 NS 300 NS 300 OM0093 N/A Onyx 200+ 280 260+ 260+ 200+ 260 280+ 300+ OM0174 N/A Pearl White 200+ 280+ 260+ 260+ 200+ 265 280+ 300 OM0448 N/A Satin Pearl 200+ 280+ 260+ 280+ 200+ 265 280+ 300+ OM1830 N/A Straw Pearl 200+ 280+ 260+ 280+ 200+ NS NS NS OM33051 N/A Shrimp Pink 200+ 280+ 260+ 260 200+ NS NS NS OM55483 N/A Azure Blue 200+ 280+ 260+ 280+ 200+ 265 280+ 300+ OM55495 N/A Arctic Pearl 200+ 280+ 260+ 280+ 200+ 265 280+ 300+ OM66297 N/A Mint Pearl 200+ 280+ 260+ 280+ 200+ 265 280+ 300+ OM0541 OC8SAD Gold NS 240 240 240 200+ NS NS NS OM0548 OC8SAE Aztec Gold # *200+ NS 260 260 NS 300 NS 300 OM0567 OCCSAD Copper NS 240 240 240 200+ NS NS NS OM0574 N/A Summer Bronze **200+ 280 260+ 260+ 200+ 265 280 300 OM0701 OC7UFA Silver 200+ 280+ 260+ 280+ 200+ 300+ 280+ 300+ OM0739 OC7SAD Pewter 200+ 280+ 260+ 280+ 200+ 300+ 280+ 300+ OM1268 OC1SAD FL Yellow *200+ NS 260+ 260+ NS 300 NS 300 OM2266 N/A FL Orange # *200+ NS 260+ 260+ NS 265 NS 300 OM3752 OC3SAG FL Pink # *200+ NS 260+ 260+ NS 300 NS 300 OM6941 OC6SAJ FL Green # *200+ NS 260+ 260+ NS 300 NS 300 OM1011TR N/A TR Yellow# *200+ NS 260+ 260+ NS 265 NS 300 OM1833TR N/A TR Lime # *200+ NS 260+ 260+ NS 265 NS 300 OM1846TR N/A Yellow Edge Glow # *200+ NS 260+ 260+ NS 265 NS 280 OM2034TR OC2SAD TR Amber # *200+ NS 260 280 NS 300 NS 300 OM2294TR N/A Orange Edge Glow # *200+ NS 260+ 260+ NS 265 NS 280 OM3012TR OC3SAD TR Red # *200+ NS 260+ 260 NS 300 NS 300 OM5016TR OC5SAE TR Blue # *200+ NS 260+ 260 NS 280 NS 280 OM6881TR OC6SAI TR Green # *200+ NS 260+ 260 NS 300 NS 300 OM7903TR OC9SAF TR Grey *200+ 280+ 260+ 280+ 200+ 300 280+ 300 OM33052TR N/A TR Claret # *200+ NS 260+ 260+ NS 265 NS 280 OM33055TR N/A Pink Edge Glow # *200+ NS 260+ 260+ NS NS NS 300 TEMPERATURE CONVERSION TABLE °C 200 220 240 260 280 300 °F 392 428 464 500 536 572 RECOMMENDED MAXIMUM PROCESSING TEMPERATURES FOR OMNICOLOR IN SELECTED POLYMERS IN °C UK COLOR NO.