https://www.avient.com/sites/default/files/2022-02/AVNT Q4 2021 Earnings Presentation_0.pdf
Unless otherwise stated, Adjusted Operating Income, Adjusted EBITDA and Adjusted EPS figures included in this presentation exclude the impact of special items as defined in our quarterly earnings releases. 2021 PE RF O RM AN CE $80 $85 2020 2021 $0.52 $0.58 2020 2021 Q4 2021 PERFORMANCE (TOTAL COMPANY) 4 Sales Adjusted Operating Income $997 $1,202 2020 2021 + 21% Adjusted EPS + 6% + 12% (in millions) (in millions) $308 $429 2020PF 2021 $1.93 $3.05 2020PF 2021 FULL YEAR 2021 PERFORMANCE (TOTAL COMPANY) 5 Sales Adjusted Operating Income $3,783 $4,819 2020PF 2021 + 27% Adjusted EPS + 39% + 58% (in millions) (in millions) (1) Financial information is pro forma to include a full year of Clariant Color business (1) (1) (1) FULL YEAR 2021 SEGMENT PERFORMANCE 6 CAI $2,043 $2,402 Sales ($ in millions) SEM Distribution $226 $303 Operating Income + 18% + 34% $1,110 $1,631 Sales $70 $93 Operating Income + 47% + 33% (1) $709 $919 Sales $94 $132 Operating Income + 30% + 40% (1) Financial information is pro forma to include a full year of Clariant Color business (1) Full Year 2020 (Pro forma) $3,783 $308 Sustainable Solutions 147 19% 60 Healthcare 143 28% 30 Composites 58 43% 29 Growth in Asia / LATAM 107 21% 26 Other 543 30% 58 Sub-total $4,781 26% $511 Wage Inflation and Overtime (39) Other Supply Chain Costs (15) COVID Response Applications (22) (12) Synergies 44 FX, Incentives, Other Employee Costs 60 (60) Full Year 2021 $4,819 27% $429 FULL YEAR 2021 SALES AND OPERATING INCOME (TOTAL COMPANY) 7 Sales Growth Rate Adjusted Operating Income$ millions (1) Financial information is pro forma to include a full year of Clariant Color business (1) Adjusted EBITDA 8 Full Year 2020 (Pro forma) $ 457 Demand 135 $ millions CAI: Price / Mix 158 Inflation (120) SEM: Price / Mix 84 Inflation (65) Distribution: Price / Mix 318 Inflation (304) Net Price Benefit 71 Wage Inflation and Overtime (39) Other Supply Chain Costs (15) COVID Response Applications (12) Synergies 44 Incentives, FX, Other Employee Costs (60) Full Year 2021 $ 581 (1) Financial information is pro forma to include a full year of Clariant Color business (1) • Demand impact driven by growth in key focus areas: sustainable solutions, healthcare, composites and growth in Asia / LATAM • Price increases more than offset raw material and supply chain impacts FULL YEAR 2021 EBITDA BRIDGE SPECIALTY EBITDA MARGIN EXPANSION 9 CAI (1) 2018-2020 financial information is pro forma to include a full year of Clariant Color business 15.3% 15.2% 16.2% 17.0% 2018 2019 2020 2021 14.8% 15.2% 17.6% 17.8% 2018 2019 2020 2021 (1) SEM • Record margins in 2021 despite unprecedented supply chain challenges • Continued portfolio transformation to high-growth end markets and sustainable solutions • Clariant Color synergy realization • Investments in composites and outdoor high performance applications drove growth and mix improvements • Acquisition of Clariant Color business significantly expanded presence in healthcare, packaging and consumer end markets • Strength of portfolio – double-digit annual EBITDA growth since acquisition • $54 million of synergies realized in 2021 • Acquisition completed on July 1, 2020 for $1.45 billion.
https://www.avient.com/sites/default/files/2023-07/Avient-2022-Sustainability-Report.pdf
Our global footprint offers both state-of-the-art facilities and talented commercial associates that enable quick collaboration with our customers—where they need us, when they need us.
Management and monitoring of global inventory regulations and other emerging issues by our regional product stewardship experts ensures a quick evaluation and proactive response to potential regulatory risks.
Animal Testing Policy Audit Committee Charter California Transparency in Supply Chains Act Disclosure Code of Conduct Code of Ethics—Applicable to Avient Senior Officers ColorMatrix Europe Limited—Modern Slavery and Human Trafficking Statement Compensation Committee Charter Conflict Minerals Policy Corporate Governance Guidelines Environmental Policy Equal Employment Opportunity Global Chemical Management Global ISO Certificate Library Global Policy on Anti-Bribery and Anti-Corruption Global Policy on Antitrust Governance and Corporate Responsibility Committee Charter Position on Human Rights Privacy Policy Product Stewardship Policy Quality Policy Responsible Care Policy Safety and Health Policy Security Policy Supplier Code of Conduct HOME | Contents | Message from the CEO | About Us | People | Products | Planet | Performance | Metrics | Index Sustainability Report | 2022 82 https://www.avient.com/sites/default/files/2022-03/Sustainability%20ESG%20Disclosures_Animal%20Testing%20Policy.pdf https://www.avient.com/sites/default/files/2020-07/avient-audit-committee-charter-rev-10-2019.pdf https://www.avient.com/california-transparency-act-disclosure https://www.avient.com/company/policies-and-governance/code-conduct https://www.avient.com/sites/default/files/2022-03/2022%20Senior%20Financial%20Officer%20Code%20of%20Conduct%20Policy%5B75%5D.pdf https://www.avient.com/company/policies-and-governance/colormatrix-europe-limited-modern-slavery-and-human-trafficking-statement https://www.avient.com/sites/default/files/2022-05/Compensation%20Committee%20Charter%20(REV%2010-2019).pdf https://www.avient.com/sites/default/files/2020-10/avient-conflict-minerals-policy-10.2020.pdf https://www.avient.com/sites/default/files/2021-03/corporate-governance-guidelines-2021.pdf https://www.avient.com/sites/default/files/2022-05/Avient_Environmental%20Policy_2022%20Update.pdf https://www.avient.com/sites/default/files/2021-04/eeo-updated-2020.pdf https://www.avient.com/sites/default/files/2022-03/Sustainability%20ESG%20Disclosures_Global%20Chemical%20Mgt%20Policy.pdf https://www.avient.com/company/policies-and-governance/global-iso-certificate-library https://www.avient.com/company/policies-and-governance/global-policy-anti-bribery-and-anti-corruption https://www.avient.com/company/policies-and-governance/global-policy-antitrust https://www.avient.com/sites/default/files/2020-07/avient-governance-and-corporate-responsibility-committee-charter-rev-2020.pdf https://www.avient.com/sites/default/files/2021-07/avient-human-rights-position-statement-updated-july-2021.pdf https://www.avient.com/company/policies-and-governance/polyone-corporation-privacy-statement https://www.avient.com/sites/default/files/2022-05/Avient_ProdStewardship_Policy_2022%20Update.pdf https://www.avient.com/sites/default/files/2022-05/Avient%20Quality%20Policy.pdf https://www.avient.com/sites/default/files/2021-05/avient-responsible-care-ehs-s-policies-2021.pdf https://www.avient.com/sites/default/files/2022-05/Avient_Health_And_Safety_Policy_2022%20Update.pdf https://www.avient.com/sites/default/files/2020-10/avient-security-policy-august-2020.pdf https://www.avient.com/company/policies-and-governance-0/supplier-code-conduct METRICS Aldringen, Belgium by Lavinia Bocan HOME | Contents | Message from the CEO | About Us | People | Products | Planet | Performance | Metrics | IndexHOME | Contents | Message from the CEO | About Us | People | Products | Planet | Performance | Metrics | Index Sustainability Report | 2022 83Sustainability Report | 2022 83 People Data and Metrics Category 2019 2020 2021 2022 Total TRIR (#—Direct) 0.56 0.50 0.55 0.51 Total TRIR (#—Contractors) 0.00 0.00 0.00 0.00 Recordable Injuries (Total #) 36 37 55 57 Recordable Illnesses (Total #) 0 0 0 0 Total LTIR (#—Direct) 0.29 0.24 0.14 0.15 Total LTIR (#—Contractors) 0.00 0.00 0.00 0.00 Total Injuries of High Consequence (% of TRIR) 14 5 2 0 Total Fatality Rate (#—Direct) 0.00 0.00 0.00 0.00 Total Fatality Rate (#—Contractors) 0.00 0.00 0.00 0.00 Process Safety Incident Count (#) 0 0 0 0 Process Safety Total Incident Rate (#) 0.00 0.00 0.00 0.00 Process Safety Incident Severity Rate (#) 0.00 0.00 0.00 0.00 Transport Incidents (#—US DOT 5800/EU ADR) 0 0 0 0 Safety Improvements Completed (#) N/A N/A 10,100 14,658 EH&S Internal Audits (#) 58 37 25 40 Workers covered by an EH&S Management Systems (%) 100 100 100 100 Workers covered by an internally audited EH&S MS (%) 100 100 100 100 Facilities externally certified ISO45001 (or equivalent — %)* N/A 52 56 54 Suppliers externally certified ISO45001 (% of surveyed) N/A 44 56 53 *Certificates can be found at (https://www.avient.com/company/policies-and-governance/global-iso-certificate-library) HOME | Contents | Message from the CEO | About Us | People | Products | Planet | Performance | Metrics | Index Sustainability Report | 2022 84 https://www.avient.com/company/policies-and-governance/global-iso-certificate-library Planet Data and Metrics Category 2019* 2020* 2021* 2022* ENERGY1 Total Energy (GJ) 2,377,860 2,242,291 2,361,107 2,265,482 Energy Intensity (GJ/MT Sales) 5.09 5.04 4.77 5.05 Renewable Electricity (MWh)** 104,880.63 122,505.22 174,701.68 232,488.43 Electric Power (MWh) 461,426.13 439,773.23 460,693.35 439,215.11 Renewable Electricity (%) 23 28 38 53 Renewable Energy (%) 16 20 27 37 Total Self-Generated Energy (GJ) 11,845 14,590 11,461 12,019 Energy Saving Activities (#) 59 74 102 129 Annual Savings from Energy Saving Activities (GJ) 35,573 19,470 72,845 439,347 Capital Invested in Energy Savings ($MM USD) 1.97 2.43 1.74 5.05 PURCHASED ENERGY (%) Purchased Electricity (%) 49.74 51.70 51.05 69.79 Purchased Natural Gas (%) 12.89 14.11 13.46 29.45 Purchased Steam (%) 0.00 0.00 0.00 0.00 Purchased Diesel Fuel (%) 0.87 0.95 1.12 0.76 SOURCES OF PURCHASED ELECTRICITY (%)2 Non-Renewable: Coal 46.72 45.53 41.12 40.04 Non-Renewable: Natural Gas 33.69 36.12 17.51 17.41 Non-Renewable: Other Fossil Fuels 0.00 0.00 0.26 0.21 Non-Renewable: Nuclear 11.95 11.37 9.86 9.01 Non-Renewable: Oil 2.16 1.60 1.82 1.70 Renewable: Hydro 3.24 2.23 14.79 15.22 Renewable: Wind 0.70 0.88 7.94 9.02 Renewable: Solar 1.48 2.20 3.76 4.67 Renewable: Biomass 0.06 0.07 2.53 2.44 Renewable: Geothermal 0.00 0.00 0.29 0.28 (continues on next page) HOME | Contents | Message from the CEO | About Us | People | Products | Planet | Performance | Metrics | Index Sustainability Report | 2022 85 Category 2019* 2020* 2021* 2022* EMISSIONS1 Greenhouse Gas Emissions (MT Scope 1 GHG)** 36,680 39,023 36,147 34,792 Greenhouse Gas Emissions (MT Scope 2 GHG)** 169,789 102,479 100,595 99,465 Greenhouse Gas Emissions (MT Scope 3 GHG)3 584,622 1,440,584 2,122,338 6,421,128 Greenhouse Gas Emissions (MT Scope 1 & 2 GHG)** 206,469 141,502 136,742 134,257 Greenhouse Gas Emissions Intensity (MT 1&2 GHG/ MT Sales) 0.44 0.32 0.28 0.30 Greenhouse Gas Emissions Intensity (MT 1&2 GHG/ B Revenue) 51,864 63,886 41,249 39,524 Annual GHG Emissions Avoidance from ESA & WMP (MT) 8,378 10,235 33,631 115,099 Reportable Releases—above permitted limits (#) 0 0 0 0 EMISSIONS OF SOX/NOX/VOC/HAPS (MT) SOx 0.14 0.13 0.13 0.25 NOx 14.74 10.85 11.77 12.96 VOC 695.40 659.43 648.17 563.96 Top 4 Hazardous Air Pollutants 0.98 1.00 1.18 6.96 Particulate Matter 33.78 30.99 32.88 28.02 WASTE Total Waste (MT) 31,087 29,783 33,090 32,267 Total Waste Intensity (Kg Waste/MT Sales) 66.60 66.92 66.90 71.88 Total Waste Intensity (MT Waste/ B Revenue) 7,809 13,447 9,982 9,499 Percent of Total Waste Recycled/Beneficially Reused (%) 51.45 50.51 47.85 48.60 Percent of Total Waste Landfilled (%) 40.13 40.20 43.26 44.24 Total Waste Landfilled (MT)** 12,476 11,972 14,315 14,274 Total Non-Hazardous Waste (MT) 27,608 26,606 29,298 28,503 Waste Minimization Projects (#) 34 53 142 114 Annual Diversion from Waste Minimization Projects (MT) 2,087 743 3,136 8,425 Capital Invested in Waste Minimization ($MM USD) 0.00 0.33 1.48 2.68 (continues on next page) (continued from previous page) HOME | Contents | Message from the CEO | About Us | People | Products | Planet | Performance | Metrics | Index Sustainability Report | 2022 86 Category 2019* 2020* 2021* 2022* HAZARDOUS WASTE Hazardous Waste US & Canada (%) 29 16 19 21 Hazardous Waste Latin America (%) 5 5 6 6 Hazardous Waste Europe (%) 36 51 41 34 Hazardous Waste Asia Pacific (%) 27 25 30 36 Hazardous Waste Middle East & Africa (%) 3 3 4 3 Total Hazardous Waste (MT) 3,480 3,177 3,792 3,850 WATER Total Water Withdrawal (1000 m3) 1,356 1,801 1,796 1,738 Total Water Withdrawal Intensity (m3/MT Sales) 2.90 4.05 3.63 3.87 Total Wastewater Discharge (1000 m3) 892 1,032 1,164 1,122 Wastewater Recycled (% of Total) 34 43 35 35 Total Water Related NoV (#) 0 0 0 0 Withdrawal & Consumed from High Water Stress Areas (% of Total) 38 35 30 28 Water Minimization Projects (#) 4 6 19 19 Annual Diversion from Water Minimization Projects (1000 m3) 9 19 55 115 Capital Invested in Water Minimization ($MM USD) 0.04 0.38 0.24 0.07 CERTIFIED ENVIRONMENTAL MANAGEMENT SYSTEMS Facilities externally certified to ISO14001/RC14001 (%)4 N/A 50 52 57 Facilities externally certified to ISO50001 (# of high energy sites)4 2 2 2 2 Suppliers externally certified ISO14001 (% of surveyed) N/A 70 75 72 Suppliers externally certified to ISO50001 (% of surveyed) N/A 17 19 24 * Includes estimated full year performance of APM acquisition ** 2019 baseline data revised to account for acquisition pro-forma performance and divestitures 1 Refer to CDP Climate Change Report for finalized Energy/Emissions information at https://www.avient.com/company/sustainability/sustainability-report/reporting/cdp-climate-change-report 2 Estimates.