https://www.avient.com/sites/default/files/2021-05/avnt-first-quarter-2021-earnings-presentation.pdf
Develop and implement solutions to end plastic
waste while supporting AEPW $1.5B
investment in key initiatives.
2030 SUSTAINABILITY TARGETS
15
PEER COMPARISONS
16
$442
$457
$560
$1.74
$1.93
$2.80
FULL YEAR 2019 – 2021 ORGANIC GROWTH
17
Sales Adjusted EBITDA
$3,981
$3,783
$4,300
+ 8%
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(1)(1)
+ 27% + 61%
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
https://www.avient.com/sites/default/files/2021-03/avient-march-ir-fermium_0.pdf
15
2021 O U TLO O K
A S P R O V I D E D O N F E B R U A R Y 9 , 2 0 2 1
W E B C A S T
Synergies
($ millions)
Initial
Three-Year
Estimate
Revised
Three-Year
Estimate
2021
Expected
Realization
Administrative $ 18 $ 20 $ 15
Sourcing 24 30 15
Operational 18 25 5
Total Synergies $ 60 $ 75 $ 35
CLARIANT INTEGRATION &
COST SYNERGIES UPDATE
17
• Integration going extremely well: synergy target increased from $60 million to $75 million
• $5 million of synergies in 2020 and expect to realize $35 million in 2021
• 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
$86
$103
$0.53
$0.70
ORGANIC GROWTH PROJECTIONS – Q1
18
Sales Adjusted Operating Income
$991
$1,090
+ 10%
Adjusted EPS
+ 20% + 32%
(in millions) (in millions)
(1) (1) (1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
$308
$360
$1.93
$2.40
ORGANIC GROWTH PROJECTIONS – FULL YEAR
19
Sales Adjusted Operating Income
$3,783
$4,100
+ 8%
Adjusted EPS
+ 17% + 24%
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(in millions) (in millions)
2020 Pro forma $3,783 $308
Sustainable Solutions 60 11% 24
Healthcare 60 11% 18
Composites 20 10% 10
Growth in Emerging Regions 50 7% 11
Other (GDP growth) 82 5% 11
Sub-total $4,055 7% $382
COVID Response Applications (25) - (11)
Outdoor High Performance Applications (15) - (7)
Asia Payroll Tax Subsidy (COVID) - - (4)
FX Impact 85 - 7
Synergies - - 30
Incentives, Travel, Other Employee Costs - - (37)
2021 Estimated $4,100 8% $360
2021 ORGANIC SALES AND OPERATING INCOME
20 (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(2) COVID Response Applications: facemasks, personal protective equipment
Sales Growth Rate
Adjusted
Operating
Income$ millions
(2)
CASH FLOW AND LEVERAGE
21
• Asset light business generates
significant free cash flow
• Cash generation in 2021 partially offset
by restructuring activities to capture
synergies associated with the Clariant
Masterbatch acquisition
• Cash flow deployed to M&A,
opportunistic share repurchases and
balance sheet / leverage reduction
3.5x
2.7x
2.1x
2019PF 2020PF 2021E
Net Debt / Adjusted EBITDA
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
($ millions) 2020 2021E
Adjusted EBITDA 382 510
Working Capital: Source / (Use) 116 (30)
Cash Taxes (40) (53)
Interest Paid (67) (76)
CapEx (62) (75)
CapEx for Synergy Capture (2) (20)
Restructuring for Synergy Capture (11) (25)
Other 22 19
Free Cash Flow 338 250
22
• 8% increase in sales drives 24% increase in adjusted EPS to $2.40
($2.70 excluding step-up depreciation and amortization) as a result of
continued growth in sustainable solutions and synergy capture
• Clariant synergy capture ahead of schedule: $35M of savings planned from
Clariant Masterbatch acquisition
• Adjusted EBITDA of $510M – highest level in company history
• Deleveraging ahead of schedule – 2.1x net debt to adjusted EBITDA by the
end of 2021
2021 PROJECTIONS
PEER COMPARISONS
23
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
https://www.avient.com/sites/default/files/2020-11/investing-in-avient_0.pdf
PEER COMPARISONS
16
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
https://www.avient.com/sites/default/files/2021-04/avient-q4-earnings-and-2021-outlook-website.pdf
That’s Avient.
21,000+
CUSTOMERS
>75%
ARE CUSTOMIZED SOLUTIONS
TO UNIQUE SPECIFICATIONS
of
sales
18
AVIENT’S VALUE CREATION LEVERS
19
Exposure to high growth end markets
Investment in commercial resources and innovation
Strong free cash flow generation / capital deployment
Clariant Masterbatch synergies
COVID recovery
Re-Rating: Current share price valuation
Avient is poised for near-term and long-term
shareholder value creation.
20
• 8% increase in sales drives 24% increase in adjusted EPS to $2.40
($2.70 excluding step-up depreciation and amortization) as a result of
continued growth in sustainable solutions and synergy capture
• Clariant synergy capture ahead of schedule: $35M of savings planned from
Clariant Masterbatch acquisition
• Adjusted EBITDA of $510M – highest level in company history
• Deleveraging ahead of schedule – 2.1x net debt to adjusted EBITDA by the
end of 2021
2021 PROJECTIONS
PEER COMPARISONS
21
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
https://www.avient.com/sites/default/files/2020-10/investing-in-avient.pdf
LB
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
https://www.avient.com/sites/default/files/2022-02/AVNT Q4 2021 Earnings Presentation_0.pdf
FX)
2022 GROWTH PROJECTIONS
19
$3.05
$3.50
2021 2022E
Full Year – Adjusted EPS
+ 15%
(+ 17% excluding FX)
$0.89
$0.95
2021 2022E
Q1 – Adjusted EPS
+ 7%
(+ 10% excluding FX)
($ millions) Q1 Full Year Q1 Full Year
2021 - Actual 1,162$ 4,819$ 123$ 429$
Sustainable Solutions 27 110 12 44
Healthcare 15 66 4 13
Composites (excl.Outdoor High Performance) 11 29 5 13
Outdoor High Performance Applications (7) (20) (4) (10)
Growth in Asia / LATAM 10 51 3 11
Other 57 115 9 12
Sub-total 1,275$ 5,170$ 152$ 512$
Wage Inflation and Overtime (12) (18)
Other Supply Chain Costs (4) (7)
FX Impact (25) (70) (4) (8)
Synergies 4 15
Travel, Other Employee Costs (1) (4)
2022 - Estimated 1,250$ 5,100$ 135$ 490$
Adjusted
2022 SALES AND OI – Q1 AND FULL YEAR
20
($ millions) 2021 2022E
Cash Flow from Operating Activities 234$ 385$
Less:
Run-Rate CapEx (86) (90)
CapEx for Clariant Integration (15) (20)
CapEx for IT System Upgrade - (25)
Total CapEx (101) (135)
Free Cash Flow 133$ 250$
Adjusted EBITDA 581$ 635$
Net Debt / Adjusted EBITDA 2.2x 1.8x
21
CASH FLOW / LEVERAGE
22
• Record results – highest level of sales ($4.8B) and earnings
($3.05 adjusted EPS) in company history
• Successful Clariant Color integration – net debt to adjusted
EBITDA reduced to 2.2x, one-year ahead of schedule
• Recognized as one of America’s Most Responsible Companies
by Newsweek
• Earned 3rd consecutive Great Place to Work certification
2021 HIGHLIGHTS
23
• 15% adjusted EPS growth to $3.50, led by growth in sustainable
solutions and increased synergy realization
• Continued strong synergy capture from the Clariant Color integration:
$75M anticipated run-rate synergies by the end of 2022
• Adjusted EBITDA of $635M represents 9% growth above 2021 –
11% excluding the impact of foreign currencies
• Deleveraged to 1.8x net debt to adjusted EBITDA by the end of 2022
2022 SUMMARY
PEER COMPARISONS
25
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
https://www.avient.com/products/thermoplastic-elastomers/versaflex-thermoplastic-elastomers
Formulated specifically for overmolding onto a wide variety of substrates, including PC/ABS, PA, PS, POM, PMMA, PETG, PK or COPE resins, for improved haptics and function
https://www.avient.com/sites/default/files/2021-09/avient2020sustainabilityreport-9-2-21.pdf
Non-toxic and heavy-metal-free ingredients and biodegradable carrier resins.
Improves recyclability for
blended resins while reducing energy required during
injection-stretch blow molding by up to 35%.
reSound™ Biopolymer Formulations combine engineering thermoplastic resins with bio-polymers such as
PLA, PHB, PHBV and biopolyesters.
https://www.avient.com/sites/default/files/2023-07/Avient-2022-Sustainability-Report.pdf
Avient’s PCR Color Prediction Service helped L’Oréal
simplify overall color development with recycled resin.
Solutions to address the challenge of post-consumer plastic waste will require
collective support, innovation and collaboration on a global basis—from resin producers, waste
management companies, consumer brands and retailers to nongovernmental organizations,
governments and consumers.
Operation Clean Sweep’s overarching
goal is to ensure that every plastic resin handling operation achieves zero loss of pellet, flake,
and powder.
https://www.avient.com/sites/default/files/2022-05/AVNT May IR Presentation w Non GAAP Recs.pdf
As
presented in previous slides, this presents potential benefits with
respect to leverage and EBITDA margins
PEER COMPARISONS
42
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.