https://www.avient.com/sites/default/files/2023-01/AVNT Dec 2022 Earnings Presentation.pdf
Microsoft PowerPoint - AVNT Nov 2022 Earnings Presentation AVIENT CORPORATION I N V E S T O R P R E S E N T A T I O N (NYSE: AVNT) D E C E M B E R 2 0 2 2 AVIENT: WHO WE ARE 40 23 9 36 • U.S. and Canada • Latin America • Europe, Middle East & Africa • Asia 25,000+ CUSTOMERS Headquartered in Avon Lake, OH (Cleveland) 9,300+ employees 100+ manufacturing plants Key Financial Data 2022PF Sales $3.6 billion 2022PF EBITDA $585 million 2022PF EPS $2.95 100% ARE CUSTOMIZED SOLUTIONS TO UNIQUE SPECIFICATIONS of sales 2 Guidance as of November 2, 2022 Webcast WHO WE ARE – VISION, STRATEGY, CULTURE 3 Avient Corporation (NYSE: AVNT) provides specialized and sustainable material solutions that transform customer challenges into opportunities, bringing new products to life for a better world.
Global Compact & fulfilled Communication of Progress (COP) requirements • New Sustainability Strategy overview page including our 2022 AIP ESG metrics • New ESG Performance page with ESG ratings, awards, and certifications • Increased disclosures on carbon emissions, including disclosure of Climate Change Scenario Analysis • Added new Product Stewardship and Chemical Management policies • Enhanced data reporting for Workforce Demographics • Improved social disclosures on human rights, dependent care and special leave and strategic training management 2021 SUSTAINABILITY REPORT Launching integrated sustainability website in parallel with report Aligned with leading reporting frameworks 6 Released July 2022 ESG RATINGS PERFORMANCE ESG AWARDS AND CERTIFICATIONS ESG PERFORMANCE & AWARDS 84th 3 1 2 7 T RAN S FO R MAT IO NAL OVE RV IE W Avient Protective Materials Dyneema ® RECENT TRANSACTIONS Acquired Divested $1.45 B $0.95 B 9 Distribution UPDATED CAPITAL STRUCTURE & LIQUIDITY • Proceeds from completed sale of Distribution used to pay near-term maturing debt to strengthen balance sheet • Fixed/floating debt ratio of ~55/45 • Proven track record of deleveraging following major acquisitions through strong free cash flow generation • 2022 pro forma net debt/adjusted EBITDA expected to be 3.1x $725 $725 $575 $500 $600 $525 $650 $650 $600 Capital Structure Cas h $544 Undr awn Rev olve r $250 Liquidity $3.15B $2.40B 2030 Notes 2029 Term Loan 2026 Term Loan 2025 Notes 2023 Notes After Dyneema Acquisition After Distribution Divestiture $794M (1) (1) $250M reflects estimated undrawn revolver following the divestiture of Distribution 10 PREVIOUS TRANSACTIONS Performance Solutions Products & $0.8 B COLOR $1.4 B Acquired (2020)Divested (2019) 11 • 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 • $75 million of realized synergies anticipated in 2022 • Acquisition completed on July 1, 2020 for $1.45 billion.
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/2024-10/Avient_CodeConduct_2024_HIN2.pdf
आचार सहंि ता | 4 वि षय-सचू ी परि चय हमार ी आचार सहंि ताहमार ी आचार सहंि ता सभ ी का समम्ान काम पर ईमानदार ी हमार े वय्ापार म े ं ईमानदार ी कॉरप्ोर टे सामाजि क ससंाधन और सपंरक् जानकार ी https://secure.ethicspoint.com/domain/media/en/gui/49178/index.html पर्शन्ो ं को हल करना और ग रै-अनपुालन सथ्ि ति यो ं पर्शन्ो ं को हल करना और ग रै-अनपुालन सथ्ि ति यो ं क ी सचूना द नेाक ी सचूना द नेा हमार ी आचार सहंि ता आपको उन मदुद्ो ं स े नि पटन े क े लि ए दि शानि रद् शे पर्दान करत ी ह ै जो आपक े काम क े समय आ सकत े ह ै ं और आपको सह ी नि रण्य ल ने े म े ं मदद कर सकत े ह ै।ं
आचार सहंि ता | 24 वि षय-सचू ी परि चय हमार ी आचार सहंि ता सभ ी का समम्ान काम पर ईमानदार ी हमार े वय्ापार म े ं हमार े वय्ापार म े ं ईमानदार ीईमानदार ी कॉरप्ोर टे सामाजि क ससंाधन और सपंरक् जानकार ी https://secure.ethicspoint.com/domain/media/en/gui/49178/index.html https://secure.ethicspoint.com/domain/media/en/gui/49178/index.html सव्-वय्वहारसव्-वय्वहार कपंन ी क ी जानकार ी, सपंतत्ि या कपंन ी म े ं कि स ी वय्कत्ि क ी सथ्ि ति का उपयोग करक े आपक े दव्ारा काम पर खोज े गए वय्ावसायि क अवसर, कपंन ी क े ह ै ं और वय्कत्ि गत रपू स े आपक े नह ी ं ह ै।ं
आचार सहंि ता | 27 वि षय-सचू ी परि चय हमार ी आचार सहंि ता सभ ी का समम्ान काम पर ईमानदार ी हमार े वय्ापार म े ं ईमानदार ी कॉरप्ोर टे सामाजि क कॉरप्ोर टे सामाजि क ससंाधन और सपंरक् जानकार ी http://Avient.com/sustainability https://www.avient.com/company/sustainability/sustainability-report https://www.avient.com/company/sustainability/sustainability-report https://www.avient.com/company/sustainability/sustainability-report/products/no-surprises-pledge-0 पर्शन् और उतत्रपर्शन् और उतत्र पर्शन्: म रे े परय्व केष्क न े म झु े एक नई अपशि षट् नि पटान पर्कर्ि या का पालन करन े क े लि ए कहा, ल केि न म झु े यक ीन नह ी ं ह ै कि यह सरुकष्ि त ह ै या काननू ी भ ी ह ।ै
https://www.avient.com/sites/default/files/2024-03/Terms and Conditions of Sale for Switzerland.pdf
Buyer acknowledges that information in Seller’s marketing materials, technical data sheets and other descriptive publications distributed or published on its websites may vary from time to time without notice.
Buyer acknowledges that Seller has furnished to Buyer safety data sheets, which include warnings together with safety and health information concerning the Product and/or the containers for such Product.
Confidentiality and Data Protection.
https://www.avient.com/sites/default/files/resources/Terms_and_Conditions_of_Sale_for_Finland_%2528English_Language_Version%2529.pdf
SAFETY & HEALTH INDEMNITY Buyer acknowledges that Seller has furnished to Buyer Material Safety Data Sheets as required under applicable laws and regulations, which include warnings together with safety and health information concerning the Product and/or the containers for such Product.
DATA PROTECTION Buyer hereby agrees that any data in relation with the business relationship between Buyer and Seller may be processed by Seller, in compliance with applicable laws and regulations. 15.
https://www.avient.com/sites/default/files/2021-06/fl.datasheet-strengthmembers.pdf
K58220T N/A Kevlar® 2480 LBs (1125 KGs) 230 FT/LB (154 M/KG) Flat 2.81 mm N/A Strength member in cable application Product ID FIBER-LINE® Polymer Jacket Base Fiber Break Strength Yield Geometry Nominal Diameter Description 13.75mm K/Hytrel Hytrel Jacket Kevlar® 29000 LBs (13154 KGs) 138 KGs/KM Round 13.75mm Kevlar rope w/ Hytrel extruded jacket 12.5mm K/TPU TPU jacket Kevlar® 24000 LBs (10885 KGs) 115 KGs/KM Round 12.5mm Kevlar rope w/ Hytrel extruded jacket 7.87mm K/MDPE MDPE Jacket Kevlar® 24000 LBs (10885 KGs) 50 KGs/KM Round 7.87mm Kevlar w/ MDPE extruded jacket .58mm C/PU TPU jacket Carbon 74 LBs (33.6 KGs) N/A Round/ Flat .58mm Carbon w/ TPU extruded jacket 4.50mm K/HDPE HDPE jacket Kevlar® 2000 LBs (907 KGs) 16 KGs/KM Round 4.06 mm Kevlar w/ HDPE extruded jacket POPULAR JACKETED STRENGTH MEMBERS MOVING HIGH PERFORMANCE FIBERS FORWARD This data is provided for informational purposes only, and does not constitute a specification.
Uranusweg 3 8938 AJ Leeuwarden The Netherlands +31(0) 58 216 75 99 info@fiber-line.com ABOUT FIBER-LINE® NOTICE: The information and data contained herein do not constitute sales specifications.
https://www.avient.com/sites/default/files/2024-12/PKE grades for Powersports Application Bulletin.pdf
Gasoline - 30% glass-filled (GF) grade, dry as molded (DAM), room temperature Testing methodology is an adaptation from ASTM D543 • Reapply freshly soaked gauze pad every 24 hours to prevent from drying out • Repeat for a total of 72 hours • Tensile properties recorded *Chemical resistance data for DEET, motor oil, glass cleaner, and sunscreen available upon request KEY CHARACTERISTICS Figure 1 Figure 2 3.34 3.84 3.63 1.96 2.21 0.99 3.43 3.86 3.93 1.76 3.49 2.01 3.26 3.66 3.74 1.45 1.06 0.989 2.98 3.99 3.41 1.41 1.07 0.88 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 30% LGF PKE 30% LGF PA6 30% LGF PA66 30% SGF PKE 30% SGF PA6 30% SGF PA66 Ft -lb /in Notched Izod Impact ASTM D256 23C DAM 23C Conditioned -40C DAM -40C Conditioned 1.47 1.37 1.37 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 Glass-Filled PKE Glass-Filled PA6 Glass-Filled PA66 g/ cm 3 Density of Polyketone vs Nylon ASTM D792 LESS MOISTURE ABSORPTION THAN NYLON 30% Short Glass Fiber (SGF) Comparison Moisture uptake, environmental chamber 62% RH, 70°C SIMILAR DENSITY TO NYLON ASTM D792 COMPARABLE AND CONSISTENT IMPACT PERFORMANCE* Notched Izod Impact (ASTM D256) of LGF and SGF for DAM and Conditioned Materials *3,000 hr weathering data available upon request KEY CHARACTERISTICS 1.844.4AVIENT www.avient.com Copyright © 2024, Avient Corporation.
https://www.avient.com/sites/default/files/2021-06/fl.datasheet-twisting.pdf
Uranusweg 3 8938 AJ Leeuwarden The Netherlands +31(0) 58 216 75 99 info@fiber-line.com ABOUT FIBER-LINE® NOTICE: The information and data contained herein do not constitute sales specifications.
https://www.avient.com/sites/default/files/2024-01/AVNT January IR Presentation_w Non-Gaap Recs.pdf
PRIOR YEAR $790 $710 2022 2023 $107 $112 2022 2023 Sales Adjusted EBITDA (in millions) $0.42 $0.47 2022 PF 2023 Adjusted EPS (in millions) - 10% + 5% + 12% Sales Adjusted EBITDA Adjusted EPS 16 $112 $500 Q4 FY $0.47 $2.30 Q4 FY Q4 AND FULL YEAR 2023 GUIDANCE $710 $3,130 Q4 FY Sales Adjusted EBITDA Adjusted EPS 17 (in millions) (in millions) Guidance: Free Cash Flow $180 $180 Prior Guidance Guidance FREE CASH FLOW & INCREASED DIVIDEND 13th Consecutive Dividend Increase 0.16 0.26 0.42 0.58 0.79 0.85 0.99 1.03 2011 2013 2015 2017 2019 2021 2023 2024 18 S U S TAI NABI L I T Y DAY RE CAP SUSTAINABILITY AS A GROWTH DRIVERLONG-TERM REVENUE GROWTH DRIVERS 60%+ Key Growth Drivers Sustainable Solutions Composites, Healthcare, Asia / LATAM Overlap Other (GDP Growth) Total Company Revenue Growth Drivers Long-Term Growth Rate Sustainable Solutions 8–12% Composites 8–10% Healthcare 8–10% Asia / LATAM 5% Other (GDP growth) 0–2% Avient 6% 20 SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH 8-12% Long Term Growth 50 90 2022 2030 Medical Plastics Market Size (in $Billions) 2020 2030 Recycled Plastics Virgin Plastics Growing Demand for Recycled Content Avient Sustainable Solutions 18 46 2023 2032 Global Offshore Annual Wind Installations (in Gigawatts) Sources: McKinsey, Bloomberg, Grand View Research SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH 21 • Transformative acquisitions combined with divestitures of more cyclical businesses have improved margins over 400 bps since 2018 • 20% long-term margin goal to be driven by key growth drivers, with sustainable solutions playing a meaningful role 5.4% 11.5% 16.0% 2006 2018 2023E Recovery Growth Drivers Strategic Objective 20%+ +1%+ +3%+ ADJUSTED EBITDA MARGIN EXPANSION 22 • 6% annualized long-term sales growth leveraging sustainable solutions, composites, healthcare, and emerging regions • Expand EBITDA margins to 20% • Deliver annual EBITDA and EPS growth of 10% and 15% • Maintain asset-light, 80% free cash flow conversion profile and be valued as a specialty formulator • Continue fostering our Great Place to Work® culture CREATING A WORLD-CLASS SUSTAINABLE ORGANIZATION 23 PEER COMPARISONS AVIENT IS ASSET LIGHT Capex / Revenue 2023E (%) Avient Specialty Formulators Other Specialty / Chemical Companies Source: Peer data per Bloomberg as of December 29, 2023 Note: Avient reflects 2023 estimated revenue of $3,130 and estimated run-rate CAPEX of $110M. 26 3.5 1.8 2.7 3.1 3.3 3.7 3.0 3.7 4.7 4.8 6.8 6.8 8.7 11.1 Av ie nt KW R FU L PP G AV Y R PM FM C H U N C E EC L H XL AS H EM N SC L FREE CASH FLOW CONVERSION Source: Peer data per Bloomberg as of December 29, 2023 Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
Avient reflects 2023 adjusted EBITDA guidance of $500M and estimated run-rate CAPEX of $110M. 2023E (%) 27 78 89 83 80 78 74 86 79 76 67 66 55 50 (39) Av ie nt KW R FU L PP G AV Y R PM FM C C E EC L AS H H XL H U N EM N SC L Avient Specialty Formulators Other Specialty / Chemical Companies MULTIPLE EXPANSION Source: Peer data per Bloomberg as of December 29, 2023 Note: Avient reflects 2023 adjusted EBITDA guidance of $500M and closing share price of $41.57.
Avient 2011, 2018 and 2021 multiples reflect trailing 12 months EBITDA at December 31. 28 EV / 2023E EBITDA 6.5 8.5 11.0 10.8 16.1 15.5 14.1 14.0 10.3 21.0 19.0 14.3 12.1 11.8 11.7 11.5 9.7 20 11 20 18 20 21 20 23 R PM AV Y PP G KW R FU L EC L H XL SC L C E FM C AS H H U N EM N Avient Historic Multiple Avient Specialty Formulators Other Specialty / Chemical Companies AP P E N DI X 30 Performance Additives 16% Pigments 12% TiO2 10% Dyestuffs 2% Polyethylene 11% Nylon 6% Polypropylene 5% Styrenic Block Copolymer 5% Other Raw Materials 33% ~40% hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials 2022 pro forma results for the acquisition of Avient Protective Materials RAW MATERIAL BASKET SEGMENT DATA U.S. & Canada 40% EMEA 37% Asia 18% Latin America 5% 2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 20% Packaging 24% Industrial 15% Building and Construction 10% Telecommunications 4% Energy 4% Defense 6% END MARKET REVENUE $2,355M $402M $1,300M $272M Sales EBITDA Specialty Engineered Materials Color Additives and Inks $592M$3,653M (1) Transportation 9% Healthcare 8% 32 (1) Total company sales and adjusted EBITDA of $3,653M and $592M, respectively, include intercompany sales eliminations and corporate costs 2022 REVENUE | $2 .4 BILLION US & Canada 34% EMEA 38% Asia 20% Latin America 8% END MARKET REGION 33 Packaging 34% Consumer 21% Healthcare 8% Industrial 15% Transportation 8% Building & Construction 11% Telecommunications 1% Energy 2% COLOR, ADDITIVES & INKS 2022 PRO FORMA REVENUE | $1 .3 BILLION US & Canada 52% EMEA 35% Asia 13% 34 Packaging 5% Consumer 19% Healthcare 8%Industrial 16% Transportation 10% Telecommunications 10% Energy 9% Defense 15% Building & Construction 8% END MARKET REGION SPECIALTY ENGINEERED MATERIALS Packaging 32% Consumer 27% Healthcare 8% Industrial 14% Building & Construction 5% Telecommunications 3% Energy 1% Defense 1% Asia (18% of sales) Transportation 9% 2022 PROFORMA AVIENT REGIONAL SALES Packaging 27% Consumer 14% Healthcare 5% Industrial 17% Building & Construction 10% Energy 5% Defense 8% EMEA (37% of sales)Transportation 11% Packaging 13% Consumer 24% Healthcare 12% Industrial 15% Building & Construction 13% Energy 5% Defense 5% US & Canada (40% of sales) Transportation 7% Packaging 56% Consumer 23% Healthcare 4% Industrial 7% Building & Construction 4% Telecommunications 1% LATAM (5% of sales) Transportation 5% Telecommunications 3% Telecommunications 6% 35 BY END MARKET Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special items, to assess performance and facilitate comparability of results.
https://www.avient.com/sites/default/files/2020-09/advanced-dispersions-color-selection-chart-1.pdf
PR 202 Semi-Transparent Masstone Tint ADVANCED DISPERSIONS SPECIALTY COLORANTS Spectrophotometric Fact Sheet EXPLANATION OF SPECTROPHOTOMETRIC DATA Avient certifies our colorants based on CIELAB spectrophotometric color difference data for each lot of product.
https://www.avient.com/sites/default/files/2022-05/Compensation Committee Charter (REV 10-2019).pdf
• Review and approve corporate goals and objectives relevant to the Chief Executive Officer’s compensation; in conjunction with the evaluation conducted by the Board as described in the Company’s Corporate Governance Guidelines, evaluate the Chief Executive Officer’s performance in light of these goals and objectives; and determine and approve (or determine and approve, and recommend to the independent members of the Board for their determination and approval) the Chief Executive Officer’s compensation level based on this evaluation and comparable market data provided by the independent compensation consultant. • In determining the long-term incentive component of the Chief Executive Officer’s compensation, consider the Company’s performance and relative shareholder return, the value of similar incentive awards to chief executive officers at comparable companies, and the awards given to the Chief Executive Officer in the past. • Review and approve the compensation of other executive officers of the Company, including benefits and perquisites, taking into consideration the Company’s performance, comparable market data, the performance of each executive officer, and such other factors as may, in the Committee’s discretion, be appropriate. • In evaluating and making recommendations regarding, or determining and approving, executive compensation, the Committee shall consider the results of the most recent shareholder advisory vote on executive compensation (“Say on Pay Vote”) required by Section 14A of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). • With respect to incentive compensation plans and equity-based plans: • Make recommendations to the Board with respect to the approval of incentive compensation plans for executive officers and all equity-based plans. • Review and approve equity-based grants and awards, including long-term incentive plan awards, to officers, senior managers, key employees, and other employees of the Company and its subsidiaries under the Company’s equity-based plans. • Review and approve the performance criteria, target awards, payout criteria and like items for the Company’s annual incentive and long-term incentive compensation plans. • Review and approve (a) attainment levels under the Company’s annual incentive plan; (b) payments to executive officers of the Company under the annual incentive plan; and (c) payments to officers, senior managers and employees of the Company under the Company’s long-term incentive compensation plans. • Administer the Company’s equity-based incentive compensation plans and other plans adopted by the Board that contemplate administration by the Committee. • Review and approve special bonuses and/or other awards to executive officers on a case-by- case basis for outstanding performance. • Review and approve the terms of all employment agreements, management continuity agreements and change in control agreements for elected officers. 3 Non-employee Director Compensation. • Review the compensation of non-employee directors and make recommendations to the Board regarding changes to existing compensation levels. • Perform administrative functions with respect to the compensation of non-employee directors, including interpreting existing policy. • Review and approve (or approve and recommend to the Board for its approval) equity-based grants and awards to non-employee directors under the Company’s equity-based plans.