https://www.avient.com/sites/default/files/2022-12/Cesa Fiber Additives Antimicrobials Product Bulletin.pdf
The additive concentrates are highly recommended for applications requiring long-term protection in textiles made of PP, PET, and PA.
https://www.avient.com/sites/default/files/2020-09/swiss-army-knife-case-study.pdf
This included an upgrade to the knife’s grips, which long had been made of metal.
https://www.avient.com/sites/default/files/2021-03/wet-grip-tpe-surfco-case-study.pdf
Ready for testing, the new material was subjected to rigorous environmental testing, including months of sun exposure and long-term placement in humidity-rich environments.
https://www.avient.com/sites/default/files/2023-03/Avient Annual Report 2022.pdf
No one knows for certain how long the recent economic challenges will last.
Our ability to service long-term indebtedness requires cash.
To develop our expected long-term return on plan assets, we consider forward looking long-term asset returns and the expected investment portfolio mix of plan assets.
https://www.avient.com/sites/default/files/2021-06/avient-ir-presentation-may-2021-w-non-gaap-recs.pdf
Whether it’s an ambitious start-up bringing a new product to market, or a large, multi- national OEM looking for consistency and reliability of global supply, Avient is built for long-term partnerships.
Investing in Innovation — Specialty companies invest to grow, so we ensure our resources are concentrated on material science for high-growth end markets, poised for value creation in the long term.
Full conformance will be built over subsequent reporting cycles. • Published 2030 performance goals, further enhancing our position as a responsible business creating sustainable, long-term value for its stakeholders. • Scope included legacy PolyOne operations.
https://www.avient.com/sites/default/files/2022-02/AVNT Q4 2021 Earnings Presentation_0.pdf
Purchase price multiple rapidly declining on strength of business and synergy capture 10 $133 $205 2019PF 2021 10 Clariant Color EBITDA Growth Purchase Price Multiple 10.8x 7.0x 6.1x 2019PF 2021 2021 w/ Full Synergies (1) (1) 11.9% 16.2% 2019PF 2021 EBITDA Margins (1) CLARIANT COLOR: TRANSFORMATIONAL ACQUISITION ($ in millions) (1) Financial information is pro forma to include a full year of Clariant Color business ($ millions) Initial Synergy Estimate 2021 Synergy Realization Total Synergies Expected Administrative $ 18 $ 29 $ 40 Sourcing 24 20 24 Operational 18 5 21 Total Synergies $ 60 $ 54 $ 85 CLARIANT COLOR INTEGRATION & COST SYNERGIES UPDATE 11 • Integration going extremely well: synergy target increased to $85 million at December 9th Investor Day • Relentless focus on guiding principles of safety first, employee collaboration and exceeding customer expectations • Future revenue synergies are not part of these estimates and represent additional growth over the long term SUSTAINABILITY FOR A BETTER TOMORROW 12 • Revenue from sustainable solutions grew 16% in 2021 and expected to grow 8-12% in 2022 as our innovation efforts and collaboration with customers accelerates • Investments centered around innovation and global sustainability megatrends o Enabling a circular economy – Technologies that allow for increased use of post-consumer recycled (PCR) material and improve recyclability of plastics o Light-weighting – Composites and CAI applications to reduce weight and material requirements, which minimize energy and carbon emissions o Eco-Conscious – Health and human safety applications as well as Avient’s alternative materials to replace lead, PVC, halogens, BPA and other less eco-friendly options 12 *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 12 2016 2017 2018 2019 2020PF** 2021 $405M $455M $550M $790M Revenue From Sustainable Solutions* 2016-2021 $915M $340M PEOPLE C U L T U R E I S E V E R Y T H I N G Community Service 7x Safer than Industry Average World-Class Safety Leadership Development Over $16 million raised since 2010 Diversity & Inclusion 13 Q4 2020 $997 $80 Sustainable Solutions 23 12% 8 Healthcare 53 43% 9 Composites 7 22% 2 Growth in Asia / LATAM 14 10% 3 Other 118 23% 2 Sub-total $1,212 22% $104 Wage Inflation and Overtime (11) Other Supply Chain Costs (4) Synergies 9 Incentives, FX, Other Employee Costs (10) (13) Q4 2021 $1,202 21% $85 Q4 2021 SALES AND OPERATING INCOME (TOTAL COMPANY) 14 Sales Growth Rate Adjusted Operating Income$ millions Adjusted EBITDA Q4 EBITDA BRIDGE 15 Price increases more than offsets raw material and supply chain impacts Q4 2020 $ 118 Demand - $ millions CAI: Price / Mix 62 Inflation (45) SEM: Price / Mix 25 Inflation (20) Distribution: Price / Mix 114 Inflation (109) Net Price Benefit 27 Wage Inflation and Overtime (11) Other Supply Chain Costs (4) Synergies 9 Incentives, FX, Other Employee Costs (13) Q4 2021 $ 126 Transportation (5)$ Outdoor High Performance (3) Other 8 Total Demand - Q4 2021 SEGMENT PERFORMANCE 16 CAI $526 $581 Sales ($ in millions) SEM Distribution $58 $61 Operating Income + 11% + 6% $305 $425 Sales $18 $22 Operating Income + 39% + 22% (1) $191 $228 Sales $30 $29 Operating Income + 19% - 3% 2022 O U TLO O K REVENUE GROWTH DRIVERS Growth Drivers Long-Term Growth Rate 2022E Growth Rate Sustainable Solutions 8–12% 12% Healthcare 8–10% 10% Composites 10% 3% Asia / LATAM 5% 6% Other (GDP growth) 2–3% 2–3% Avient 6.5% 6% 18 Excluding Outdoor High Performance 13% (7.5% excl.
We will deliver for our stakeholders through multiple value creation levers—many of which are unique to Avient: o Demand for sustainable solutions, healthcare, and composites, together with Clariant Color revenue synergies, that will drive long-term revenue growth in excess of GDP o Clariant color cost synergy capture will result in significant near-term benefit In addition, we remain committed to increasing annual dividends in line with earnings growth and opportunistically buying back shares, all while remaining modestly levered.
In addition, operating income before the effect of special items is a component of Avient’s annual and long-term employee incentive plans and is used in debt covenant computations.
https://www.avient.com/sites/default/files/2020-10/antimicrobial-dental-case-study.pdf
Second, lead times for the additive were long and deliveries slow, which gave rise to production bottlenecks.
https://www.avient.com/sites/default/files/2022-11/Cesa Fiber Tracer Concentrates Product Bulletin.pdf
PRODUCT BULLETIN Cesa™ Fiber Tracer Concentrates The textile supply chain is usually long and complex, with several material and service suppliers playing a role.
https://www.avient.com/sites/default/files/2023-11/Renol Fiber Colorants Deep Black Product Bulletin.pdf
Renol™ Fiber Colorants Deep Black Colorants for PET Fibers The textile market, particularly in the automotive textiles, apparel, and home decor sectors, has long sought after deep black colorants that offer exceptional jetness and light fastness without incurring exorbitant costs.
https://www.avient.com/sites/default/files/2020-10/light-diffusion-case-study.pdf
Sourcing materials from overseas made the company vulnerable to quality inconsistencies and long lead times.