https://www.avient.com/sites/default/files/2025-01/AVNT Dec 2022 Earnings Presentation Updated.pdf
Ops Pro Forma
$2.60
$2.95
Cont.
Ops Pro Forma
FULL YEAR 2022 GUIDANCE
24
Sales Adjusted EBITDA
$3,375
$3,635
Cont.
Ops Pro Forma
Adjusted EPS
(in millions) (in millions)
25
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
APPENDIX
Performance
Additives
15%
Pigments
13%
TiO2
11%
Dyestuffs
3%Polyethylene
12%
Nylon
6%
Polypropylene
5%
Other Raw
Materials
30%
Styrenic Block
Copolymer
5%
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
27
• From Q2 to Q3, we have seen a 7-10%
sequential decline in certain
hydrocarbon-based raw materials
• Other raw materials such as
performance additives and pigments
have shown moderate inflation
sequentially from Q2 to Q3
Annual Purchases
RAW MATERIAL AND SUPPLY CHAIN UPDATE
Based on 2021 purchases, excludes Avient Protective Materials
SEGMENT DATA
U.S. & Canada
40%
EMEA
35%
Asia
20%
Latin America
5%
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
Consumer
21%
Packaging
23%
Industrial
15%
Building and
Construction
10%
Telecommunications
4%
Energy
4%
Defense
6%
END MARKET REVENUE
(1) Total company adjusted EBITDA of $585M includes corporate costs.
https://www.avient.com/sites/default/files/AVNT February 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
December 31,
2023 2022
Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1)
Net income (loss) from continuing operations attributable to Avient
shareholders $ 27.8 $ 0.30 $ (17.0) $ (0.19)
Special items, after tax (Attachment 3) 5.4 0.06 38.3 0.42
Amortization expense, after-tax 15.0 0.16 14.6 0.16
Adjusted net income / EPS $ 48.2 $ 0.52 $ 35.9 $ 0.39
(1) Per share amounts may not recalculate from figures presented herein due to rounding
Year Ended
December 31,
2023 2022
Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1)
Net income from continuing operations attributable to Avient shareholders $ 75.8 $ 0.83 $ 82.8 $ 0.90
Special items, after tax (Attachment 3) 79.3 0.86 116.2 1.26
Amortization expense, after-tax 61.5 0.67 49.0 0.53
Adjusted net income / EPS $ 216.6 $ 2.36 $ 248.0 $ 2.69
(1) Per share amounts may not recalculate from figures presented herein due to rounding
1
Three Months Ended
December 31,
Year Ended
December 31,
Reconciliation to EBITDA and Pro Forma Adjusted EBITDA 2023 2022 2023 2022
Sales - GAAP $ 719.0 $ 790.4 $ 3,142.8 $ 3,396.9
Pro forma APM adjustments — — — 256.1
Pro forma adjusted sales $ 719.0 $ 790.4 $ 3,142.8 $ 3,653.0
Net income (loss) from continuing operations – GAAP $ 27.6 $ (16.6) $ 76.3 $ 83.1
Income tax (benefit) expense (7.0) (60.8) 11.0 (19.3)
Interest expense 26.8 49.4 115.3 119.8
Depreciation and amortization from continuing operations 44.2 48.6 188.8 162.5
EBITDA from continuing operations $ 91.6 $ 20.6 $ 391.4 $ 346.1
Special items, before tax 22.4 104.3 114.6 194.0
Interest expense included in special items (0.1) (16.0) (2.3) (26.0)
Depreciation and amortization included in special items — (1.5) (1.9) (5.5)
Adjusted EBITDA $ 113.9 $ 107.4 $ 501.8 $ 508.6
APM pro forma adjustments - 8 months 2022* — — — 83.1
Pro forma adjusted EBITDA $ 113.9 $ 107.4 $ 501.8 $ 591.7
Pro forma adjusted EBITDA as a percent of sales 15.8 % 13.6 % 16.0 % 16.2 %
* Pro forma adjustment for January - August 2022 APM results (period before Avient ownership).