https://www.avient.com/sites/default/files/2020-03/PolyOne_Website-12.19.pdf
The non-GAAP financial measures include: adjusted EPS, pro forma adjusted EPS, adjusted operating income, adjusted EBITDA, return on invested capital (ROIC) and free cash flow.
Pro forma adjusted EPS is defined as adjusted EPS pro forma for the proposed acquisitions excluding the impact of the step-up of depreciation and amortization related to purchase accounting.
Sources Cash from Balance Sheet $465 New Senior Unsecured Notes 650 New Equity 450 Total Sources $1,565 Uses Clariant Masterbatch $1,500 Clariant India Masterbatch 60 Less: Lease Adjustment (113) Net Purchase Price $1,447 Net Cash Acquired 57 Fees, Expenses & OID 61 Total Uses $1,565 ($ Millions) Cash and Cash Equivalents $370 $450M Senior Secured ABL Revolver - Senior Secured Term Loan B due 2026 624 Other Debt 25 Total Senior Secured Debt $649 5.25% Senior Unsecured Notes due 2023 $600 New Senior Unsecured Notes 650 Total Senior Debt $1,899 Net Debt $1,529 New Equity $450 Pro Forma Capitalization (1) PF 12/31/2019 $450 $600 $624 $743 2019 2020 2021 2022 2023 2024 2025 2026 A T T R A C T I V E F I N A N C I N G S T R U C T U R E Attractive Debt Maturity Profile Existing Revolver Existing Senior Notes Existing Term Loan B New Debt Financing Financing Summary Terms on New Debt $465 million of cash from the balance sheet expected to fund a portion of the purchase price Bridge financing for remainder fully committed from Citi, Morgan Stanley and Wells Fargo Permanent financing expected to include a combination of long-term debt and new equity The timing of the permanent financing is subject to a number of factors, including, but not limited to, market conditions PolyOne is committed to preserving a strong balance sheet – Target net leverage at close below 3.5x, excluding synergies Pro forma capital structure positions PolyOne with flexibility to pursue continued growth strategy New financing expected to have same or better covenant package than existing capital structure Capital structure would be “covenant lite” Capital Policy Transaction in line with PolyOne’s disciplined capital allocation policy Existing PolyOne dividend policy to be maintained Focus on deleveraging in the near term 2028+ PolyOne Corporation 26 PolyOne Corporation 27 T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y Landmark portfolio transformation: > 85% of Adjusted EBITDA from specialty solutions World-class innovation, technology and service are differentiators Sustainability initiatives and alignment with megatrends drive above market growth in key end markets and applications: Capital management is a strength - proven track record of expanding ROIC while increasing invested capital Transaction expected to add $0.85 to pro forma adjusted EPS PolyOne Corporation 28 PolyOne Corporation 29
https://www.avient.com/products/fiber-line-engineered-fiber-solutions/high-performance-synthetic-fibers/novoloid-phenolic-fiber
History
The technology to produce novoloid phenolic fiber was initially developed in the late 1960’s with commercial fiber production and development by Gunei Chemical Industry Co. based in Japan.
Manufacturer
Gunei Chemical Industry Co.
https://www.avient.com/sites/default/files/2020-08/colormatrix-flexcart-nano-liquid-metering-system-flyer_0.pdf
FLEXCART™ NANO METERING SYSTEM The FlexCart Nano system is the smallest version of the FlexCart systems, providing a compact metering unit suited for very short production runs and small laboratory/pilot plant systems.
https://www.avient.com/sites/default/files/2022-04/Avient Acquisition of Dyneema and Q1 2022 Results_0.pdf
To provide comparable financial results, the Company references “pro forma” financial metrics, which include the business results of Clariant Color for periods prior to the Acquisition Date.
Avient also references “pro forma” financial metrics, which include the results of the proposed Dyneema acquisition.
Avient pro forma reflects 2022 estimated EBITDA of $660M and revenue of $3,740M.
https://www.avient.com/resources/safety-data-sheets?page=2491
20003 CO AMBER PET
10008 CO PEARL RED VALVOLINE
10005 CO PURPLE
https://www.avient.com/resources/safety-data-sheets?page=2499
10003 CO JERGENS WHITE GOLD
20001 CO AMBER (RED) COORS PET
20004 CO AMBER A/B PET
https://www.avient.com/products/polymer-colorants/liquid-color-concentrates/hiformer-liquid-masterbatches
Converse, Co-Create, Complete
This system is founded on three primary elements: Converse, Co-Creation, and Complete.
Co-Create: Customizing Your Product
During the second phase, the brand owner and the plastics processor work together to develop customized solutions for the specific needs of the application.
https://www.avient.com/sites/default/files/2024-01/AVNT January IR Presentation_w Non-Gaap Recs.pdf
Pro Forma Financial Information The Company acquired Avient Protective Materials (“Dyneema”) on September 1, 2022 (the “Acquisition Date”) and sold the Distribution segment on November 1, 2022.
To provide comparable results, the company references “pro forma” financial metrics, which include the business results of Avient Protective Materials for periods prior to the Acquisition Date, as if the transaction occurred on January 1, 2021 and reflect Distribution as a discontinued operation.
Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Reconciliation to Condensed Consolidated Statements of Income: $ EPS $ EPS Net income (loss) from continuing operations attributable to Avient shareholders $ 5.1 $ 0.06 $ (27.4) $ (0.30) Special items, after tax 32.0 0.35 68.3 0.75 Amortization expense, after-tax 15.2 0.16 $ 13.4 $ 0.14 Adjusted net income / EPS $ 52.3 $ 0.57 $ 54.3 $ 0.59 Three Months Ended September 30, Reconciliation to EBITDA and Adjusted EBITDA: 2023 2022 Sales - GAAP $ 753.7 $ 823.3 Pro Forma APM adjustments — 60.7 Pro forma adjusted sales $ 753.7 $ 884.0 Net income from continuing operations – GAAP $ 5.1 $ (27.8) Income tax (benefit) expense (0.1) (1.2) Interest expense, net 30.3 37.3 Depreciation and amortization 46.4 39.8 EBITDA from continuing operations $ 81.7 $ 48.1 Special items, before tax 43.2 82.0 Interest expense included in special items (2.2) (10.0) Depreciation and amortization included in special items — (0.8) Adjusted EBITDA $ 122.7 $ 119.3 Pro forma APM adjustments — 17.2 Pro forma adjusted EBITDA $ 122.7 $ 136.5 Pro forma adjusted EBITDA as a % of sales 16.3 % 15.4 % 1 Year Ended December 31, Reconciliation to EBITDA and Adjusted EBITDA: 2006 2018 Sales $ 2,622.4 $ 3,533.4 Net income from continuing operations – GAAP $ 133.5 $ 160.8 Income tax expense 29.7 36.4 Interest expense, net 63.1 62.8 Depreciation and amortization 57.1 91.5 EBITDA from continuing operations $ 283.4 $ 351.5 Special items, before tax (34.0) 59.5 Depreciation and amortization included in special items — (3.0) JV - equity income (107.0) — Adjusted EBITDA $ 142.4 $ 408.0 Adjusted EBITDA as a % of sales 5.4 % 11.5 % Reconciliation to EBITDA and Adjusted EBITDA: Three Months Ended December 31, 2022 Net loss from continuing operations – GAAP $ (16.6) Income tax benefit (60.8) Interest expense, net 49.4 Depreciation and amortization 48.6 EBITDA from continuing operations $ 20.6 Special items, before tax 104.3 Interest expense included in special items (16.0) Depreciation and amortization included in special items (1.5) Adjusted EBITDA $ 107.4 Reconciliation of Pro Forma Adjusted Earnings per Share: Three Months Ended December 31, 2022 Net loss from continuing operations attributable to Avient shareholders $ (17.0) Special items, after tax 38.3 Amortization expense, after-tax 14.6 Adjusted net income from continuing operations excluding special items 35.9 Pro forma adjustments* 2.5 Pro forma adjusted net income from continuing operations attributable to Avient shareholders $ 38.4 Weighted average diluted shares 91.7 Pro forma adjusted EPS - excluding special items pro forma for APM acquisition $ 0.42 * Pro forma adjustment to reflect APM results for the period before Avient ownership including the impacts of debt financing and paydown of debt with net proceeds from the Distribution sale. 2 AVNT January IR Presentation.pdf Avient corporation�investor presentation DISCLAIMER Slide Number 3 Creating a world-class�sustainable organization Top-tier sustainability performance�and recognition What we do: We are a formulator Slide Number 7 Avient protective materials �First Year 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 Slide Number 18 Slide Number 19 Slide Number 20 Slide Number 21 Slide Number 22 Slide Number 23 Slide Number 24 Slide Number 25 Avient is asset light Free cash flow conversion Multiple expansion Slide Number 29 Slide Number 30 Slide Number 31 2022 pro forma segment, end market and Geography Color, Additives & Inks Specialty Engineered Materials Slide Number 35 IR Deck - AVNT-2023.09.30 Non GAAP Recs.pdf Attachment
https://www.avient.com/resources/safety-data-sheets?page=2806
S1931CP COTTON PRO PROCESS CYAN
S1911CP COTTON PRO FLUO.
https://www.avient.com/resources/safety-data-sheets?page=1506
S1701CP COTTON PRO AQUA
S1704CP COTTON PRO CHROME GREEN