https://www.avient.com/sites/default/files/2023-09/Avient Sustainability Day 2023 - Website %289.19%29.pdf
DISCLAIMER
Avient Corporation 3
Avient Corporation 4
Welcome
Bob Patterson
Chairman, President, and Chief Executive Officer
INTRODUCTION
Sustainability for a Better Tomorrow
Jamie Beggs
Senior Vice President and Chief Financial Officer
Avient Corporation 5
WE ARE A FORMULATOR
CUSTOM
FORMULATION
Avient Corporation 6
Avient Corporation 7
WE ARE INNOVATORS
2,500+
ACTIVE PATENT
FILINGS WORLDWIDE
1,100+
RESEARCH AND
DEVELOPMENT ASSOCIATES
>85% Stage-gate technology projects enable sustainable solutions
INDIA INNOVATION CENTER
33%
2022 VITALITY
INDEX
140+
MATERIAL SCIENCE
PhD ASSOCIATES
Avient Corporation 8
3% 3%
5%
Avient Specialty Formulators Other Specialty /
Chemical Companies
CAPEX / Revenue
2023E
Global footprint enables greater flexibility to exceed
needs of customers and deliver localized technical
and formulation expertise
35
9
36
24
Manufacturing Locations by Region
WE ARE ASSET LIGHT
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA
Avient Corporation 9
Asset-light flexibility
enables more nimble
manufacturing capabilities
and lower overhead
Periods of economic
weakness have driven
higher levels of cash
generation due to working
capital improvement
PROVEN TRACK RECORD OF HIGH FREE CASH FLOW CONVERSION
78%
78%
80% 80%
81%
78%
84%
83%
80%
79%
50%
55%
60%
65%
70%
75%
80%
85%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E
0
50
100
150
200
250
300
350
400
Fr
ee
C
as
h
Fl
ow
C
on
ve
rs
io
n
Fr
ee
C
as
h
Fl
ow
FC F $ AVNT FC F Conver si on % S&P F CF Conversion %
2 Recent Divestitures - Combined $1.7B in Proceeds
PORTFOLIO EVOLUTION
Avient Corporation 10
Combined $3.6B Investment in Acquisitions Since 2016
Color Business
Distribution
2016 2022
PORTFOLIO TRANSFORMATION
7%
46%
66%
87%
100%
0%
20%
40%
60%
80%
100%
2005 2010 2015 2020 2023
%
o
f A
dj
us
te
d
EB
IT
D
A
Commodity JVs Distribution Performance Products & Solutions Specialty Businesses
Adjusted EBITDA from Specialty Applications
Avient Corporation 11
END MARKET TRANSFORMATION
Packaging
Consumer
Healthcare
Defense
Avient Corporation 12
10%
19%
8%
23%
4%
7%
7%
2006 2023E
Other
Industri
es
78%
Healthcare
Consumer
Packaging
22%
56%
14%
10%
43%
9%
2006 2023E
Reduced Exposure to Cyclical End Markets End Market Diversification
Transportation
Building &
Construction
57%
19%
Defense
IMPROVING PROFITABILITY AND EXPANDING MARGINS
Avient Corporation 13
Adj.
LAND-BASED)
Avient Corporation 58
Solar Power Wire and Cable
Syncure™ and ECCOH™ Photovoltaic Polymers
• Supports installation of sustainable infrastructure for
renewable energy
• Reduces energy consumption vs. radiation cross-linking process
• Extends useful life for cables
EXTENDS PRODUCT LIFE
Alternative Energy
2022 Revenue: $26M
Wind Turbine Towing Lines
Dyneema® Rope
• Weightless when submerged
• Smaller diameter for equal strength = larger winch capacities
• Reduces drag for improved towing
STRONGER THAN STEEL
15x
Wind Blade Root Stiffener
Glasforms™ Composites
• Provides enabling technology that supports adoption of
alternative energy
• Withstands fatigue for extended product life
ENABLES WIND ENERGY
Avient Corporation 59
CUSTOMER
TESTIMONIALS
“We believe that sustainability and innovation go hand-in-hand and the team at Harley-
Davidson is excited about Avient’s recently launched Bio-Based TPE for our
handlebar grips.”
CAFE: Corporate Average Fuel Economy
>50% Improvement
REDUCE – TAKEAWAY
Reducing Energy Consumption and Dependence on Fossil Fuels Drives Growth Projections
Examples
Covered
Today
45%
Other
Applications
55%
2022PF
$310M
38
46
CAFE1 Miles Per Gallon Proposed Requirements
HOW WE ENABLE SUSTAINABILITY
Preserve
Woon Keat Moh
Senior Vice President, President of Color, Additives and Inks –
Americas and Asia
Avient Corporation 61
PRESERVE
Avient Corporation 62
KEY CUSTOMER CHALLENGES:
• Preserving Key Natural Resources - Companies are being challenged to
mitigate high environmental impact processes such as water-intensive textile dyeing or
food spoilage
• Incorporating Renewable Materials - Adoption of bio-based raw materials
requires design and formulation expertise to overcome performance shortcomings of
neat resins
• Increasing Healthcare Regulations - Utilizing sustainable materials in
healthcare applications requires considerable support in navigating complex regulatory
requirements
• Increasing Regulatory Compliance - Non-Intentionally Added Substances
(NIAS) need to be controlled in sensitive applications
• Enabling Faster and More Reliable Connectivity – Substantial investments
in 5G infrastructure are required to unlock the potential of the Internet of Things
Solutions to preserve and
protect natural resources &
human life
Avient Corporation 63
Spin Dyed Precolor Textile Yarn
Renol™ Spin Dyeing Colorants
• Replaces water-based dye processes to reduce
waste creation
• Conserves water and energy
75%
LESS WATER
PROTECTIVE DENIM
Dyneema® Workwear Solutions
• Improves tear resistance 50-100%
• More protective than competitive alternatives
• Enables the amount of protective fiber to be
reduced without sacrificing performance
600%
IMPROVED ABRASION RESISTANCE
Clothing & Textiles
2022 Revenue: $49M
Avient Corporation 64
Low Cure Textile Inks
Avient Specialty Inks™ Low Cure Inks
• Decreases energy consumption
• Reduces scrap due to heat-related defects
SAVES ENERGY
Clothing & Textiles
2022 Revenue: $40M
BIO-BASED
FORMULATIONS
Water Based Textile Inks
Zodiac™ Aquarius™ Specialty Inks
• Incorporates bio-based materials
• Non-formaldehyde solutions available
• Reduces waste by enabling high open screen time
Avient Corporation 65
Mosquito Netting
Cesa™ Fiber Anti-Mosquito Additives
• Helps control malaria
• Protects consistently using a controlled
release of insecticide
• Expands access to healthcare
breakthroughs to global communities
ANNUAL NEW MALARIA CASES
200 Million
Antimicrobial Protection
Cesa™ WithStand™ Antimicrobial Additives
• Reduces microbial / mold growth
• Helps reduce odor, staining, discoloration
• Excellent comfort and wearability
• Chemical resistance - will not discolor
or degrade
REDUCES MICROBES
Human Health & Safety
2022 Revenue: $5M
Avient Corporation 66
Cut-Resistant Gloves
Dyneema® Solutions
• Incorporates bio-based materials
• Reduces carbon emissions
• Excellent wearability / comfort
WORK INJURIES
REDUCES
Rescue Rope
Dyneema® Solutions
• Superior strength-to-weight ratio
• High break load
• Extraordinary reliability
SAVES LIVES
Human Health & Safety
2022 Revenue: $106M
Body Armor
Dyneema® Protective Solutions
• Exceptional trauma protection
• Excellent wearability
LIGHTER
THAN ARAMID FIBER
35%
Avient Corporation 67
40%
BIO-DERIVED
Pharmaceutical Tubing
Versaflex™ Healthcare Pharma Tubing Formulations
NEU™ Specialty Engineered Materials
• Facilitates incorporation of sustainable materials
with healthcare device manufacturers
• Eliminates vulcanization processes
Medical
2022 Revenue: $40M
NON-PHTHALATE
Respiratory Conduit
Versaflex™ Healthcare Corrugated
Tubing Formulations
• Non-Phthalate
• ISO 10993 & USP Class VI compliant
Avient Corporation 68
100%
UP TO
BIO-BASED CARRIER
Medical Devices
Mevopur™ Bio-Based Colorants
• Minimizes risk through pre-testing
• Provides vital regulatory compliance
• Minimizes global supply chain risk with
validated backup supply
Continuous Glucose Monitoring
and Auto Injectors
Trilliant™ Healthcare Polymer Solutions
• Impact performance
• Chemical resistance
ENABLES HOME CARE
Medical
2022 Revenue: $16M
Avient Corporation 69
Fiber Optic Cable and Jacketing
Fiber-Line™ Optical Fiber Cable Components
• Reduction in weight & energy usage
• Thermal and abrasion resistant
• Extends product life
ENABLES CONNECTIVITY
Cable Micromodules
ECCOH™ Low Smoke Formulations
• Non-halogen
• Low smoke and toxicity
SUPPORTS SUSTAINABLE
INFRASTRUCTURE
Base Station Components
Edgetek™ Low-Density Formulations
• Low density – lighter weight
• Low warpage & thermal conductivity
EXTENDS PRODUCT LIFE
Antenna Components
PREPERM™ Low Loss
Dielectric Formulations
• Replaces costly ceramics
• Consistent and efficient antenna performance
ENHANCES
PERFORMANCE
5G Infrastructure
2022 Revenue: $39M
Avient Corporation 70
“Nike has partnered with Avient extensively over the years because of their leadership in
eco-friendly screen printing inks.”
https://www.avient.com/idea/material-solutions-expanding-ev-charging-infrastructure
Polymer Additives
,
Polymer Colorants
|
Transportation
Available in both halogen and non-halogen formulations, they can be combined with colors, including over 2,000 OnColor™ UL 94 Colorants, eliminating extra UL listing approval steps.
These types of additives can help the polymer surface withstand extreme temperatures, wind, sunlight, exposure to chemical cleaning products, or surface damage from excessive handling.
https://www.avient.com/products/polymer-colorants/liquid-color-concentrates/hiformer-liquid-masterbatches
Liquid Polymer Processing Aid
Polymer Colorants
See how our specially formulated colorants can help differentiate your brand
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Goldman%2520Sachs%2520Basic%2520Materials%2520Conference%2520-%2520May%25202016.pdf
The non-GAAP financial measures
include: adjusted EPS, earnings before interest, tax, depreciation and amortization
(EBITDA), adjusted EBITDA, net debt, Specialty platform operating income, Specialty
platform gross margin percentage, adjusted operating income, return on invested
capital, net debt/ EBITDA, and the exclusion of corporate charges in certain
calculations
PolyOne Corporation Page 4
PolyOne Commodity to Specialty Transformation
• Volume driven,
commodity producer
• Heavily tied to
cyclical end markets
• Performance largely
dependent on non-
controlling joint
ventures
2000-2005 2006 - 2009 2010 – 2015 2016 and beyond
• Steve Newlin
appointed, Chairman,
President and CEO
• New leadership team
appointed
• Implementation of four
pillar strategy
• Focus on value based
selling, investment in
commercial resources
and innovation to drive
transformation
• Substantial EPS growth
from $0.13 to all-time
high of $1.96
• Shift to faster growing,
high margin, less
cyclical end markets
• Key acquisitions propel
current and future
growth, as well as
margin expansion
• Specialty mix expands
to 65% of Operating
Income – strongest mix
of earnings in history
• Deliver consistent
double digit annual
EPS growth
• Maintain >35% vitality
index
• Pursue strategic
acquisitions that
expand specialty
offerings and
geographic breadth
• Invest and grow
current and next
generation talent
PolyOne Corporation Page 5
Confirmation of Our Strategy
The World’s Premier Provider of Specialized
Polymer Materials, Services and Solutions
Specialization Globalization
Operational
Excellence
Commercial
Excellence
Associates
PolyOne Corporation Page 6
26 Consecutive Quarters of EPS Growth
PolyOne Corporation Page 7
2015 Revenues: $3.4 Billion
End Markets
2015 Revenues: $3.4 Billion
PolyOne
At A Glance
$0.12
$0.27 $0.21
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Adjusted EPS
United States
66%
Europe
13%
Canada
7%
Asia
7%
Latin America
7%
Appliances
4%
Building &
Construction
12%
Consumer
10%Electrical &
Electronics
5%
Healthcare
11%
Industrial
14%
Packaging
13%
Textiles
2%
Transportation
20%
Wire & Cable
9%
$1.96
Distribution
29%
PP&S
20%
CAI
23%
SEM
15%DSS
13%
PolyOne Corporation Page 8
Old
PolyOne
*Operating Income excludes corporate charges and special items
2%
43%
65%
0%
20%
40%
60%
80%
100%
2005 2010 2015 2020
%
o
f O
pe
ra
tin
g
In
co
m
e*
JV's Performance Products & Solutions Distribution Specialty
80%+
Specialty OI $5M $87M $229M
Mix Shift Highlights Specialty Transformation
Transformation
2020
Platinum
Vision
Platinum
Vision
PolyOne Corporation Page 9
Color and Engineered Materials at the
Heart of Specialty Transformation
OPERATING MARGIN
1.7%
4.6% 5.1%
5.5%
7.2%
8.1%
9.7%
12.2%
14.7%
16.7% 17.0%
20%+
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q'16 2020
Platinum
Vision
COLOR, ADDITIVES
AND INKS
1.1% 1.3%
3.4%
5.1%
9.6%
8.0%
8.6%
9.3%
12.1%
14.7%
16.6%
20%+
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q'16 2020
Platinum
Vision
SPECIALTY
ENGINEERED MATERIALS
PolyOne Corporation Page 10
2006 1Q 2016 2020
“Where we were” “Where we are” Platinum Vision
1) Operating Income %
Specialty:
Color, Additives & Inks 1.7% 17.0% 20%+
Specialty Engineered Materials 1.1% 16.6% 20%+
Designed Structures & Solutions N/A 2.5% (TTM) 8 – 10%
Performance Products &
Solutions 5.5% 11.9% 12 – 14%
Distribution 2.6% 6.5% 6.5 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 61% 80%+
3) ROIC* 5.0% 12.0% 15%
4) Adjusted EPS Growth N/A 22% Double Digit
Expansion
Proof of Performance & 2020 Goals
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
PolyOne Corporation Page 11
Therma-Tech™ & Sheet
GEON™ Vinyl
Polymer ColorantsTherma-Tech™
TPE’s & Film
TPE + OnForce™
Gravi-Tech™
Page 11
Film
Target End Markets… Healthcare
PolyOne Corporation Page 12
TPE + OnForce
(SEM)
OnForce
(SEM)
Glasforms
(SEM)
TPE Vibration Dampening
(SEM/GLS)
TPE & Film
(SEM + DSS)
Glasforms
(SEM)
Polymer Colorants
(CAI)
Thermatech
(SEM)
Thermoplastic Elastomers
(SEM)
TPE + OnForce
(SEM)
OnForce
(SEM)
Thermoplastic Elastomers
(SEM)
Glasforms
(SEM)
Polymer Colorants
(CAI)
Sheet
(DSS)
Source: Outdoor Industry Association
Target End Markets… Outdoor High Performance
PolyOne Corporation Page 13
Sound & Vibration
Management
Fuel Handling
Systems
Interior & Exterior Trim
Structural Braces
& Brackets
Interior Structural
Components
Lighting
Air management
Electronics & Cameras
Fluid Handling
Target End Markets… Automotive
Underhood
Components
Roof Systems
PolyOne Corporation Page 14
Target End Markets… Packaging
PreservaPak™
OnColor™
Smart Batch™
VersaFlex™
TPE Cap Liner
ColorMatrix™
Amosorb™
Oxygen Scavenger
ColorMatrix™
Ultimate™ UV
Light Barrier
OnCap™
Laser Marking
Additives
PolyOne Corporation Page 15
Innovation Drives Earnings Growth
*Specialty Platform revenue from products introduced in last five years
$20
$53
2006 2015
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
14%
34%
2006 2015
CAI & SEM
Gross Margin
12%
43%
2006 2015
Target ≥ 35%
Innovation Pipeline Potential
PolyOne Corporation Page 16
2,883
2,414
2006 2015
Volume
(lbs in millions)
-16%
$103
$192
2006 2015
Commercial, R&D
and Marketing
Spending ($M)
+86%
$303
$721
2006 2015
Adjusted
Gross Profit ($M)
+138%
Ours is Not a Cost Cutting Story
PolyOne Corporation Page 17
Design and Service as a Differentiator
Right Material &
Color
Desired
Product Design
Appropriate
Manufacturing Process
Delivering Concept to
Commercialization
Connecting
the Dots with
iQ Design Labs and
InVisiO Color Design
PolyOne Corporation Page 18
Customer First Through World-Class Service
Strengthening relationships through:
Providing LSS services to small/medium sized customers
Providing training in Customer Centric Selling Skills with customers
World’s Best Business
Process Excellence
Program in 2012*
World’s Best Start-up
program for Lean Six Sigma
Deployment in 2009*
81%
93%
2006 2015
16.2%
9.7%
2006 2015
On-Time Delivery
Working Capital % of Sales
52% of associates trained in LSS
Five consecutive years – CFO Magazine Best Working
Capital Management in the chemical industry
Commitment to Operational Excellence
PolyOne Corporation Page 19
60%
100%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 1Q 2016
Pension Funding**
As of March 31, 2016
Debt Maturities & Pension Funding
Net Debt / Adjusted EBITDA*= 2.5x
** includes US-qualified pension plans only*TTM 3/31/2016
$550
$600
$200
$300
$400
$500
$600
$700
$800
2022 2023
Debt Maturities
As of March 31, 2016
($ millions)
Coupon Rate: 3.750% 5.250%
PolyOne Corporation Page 20
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
Expanding our sales,
marketing, and
technical capabilities
Investing in operational
and LSS initiatives
~75% of capital
expenditures fund
growth initiatives Organic
Growth
Acquisitions
Share
Repurchases
Dividends
$0.16
$0.20
$0.32
$0.40
$0.48
$0.10
$0.20
$0.30
$0.40
$0.50
2011 2012 2013 2014 2015 2016
Annual Dividend
Targets that expand
our:
• Specialty offerings
• End market
presence
• Geographic breadth
Synergy opportunities
Adjacent material
solutions
Repurchased
1.5 million shares in
Q1 2016
Repurchased 17.3
million shares since
early 2013
10.0 million shares are
available for
repurchase under the
current authorization
$0.24
PolyOne Corporation Page 21
The New PolyOne: A Specialty Growth Company
Why Invest In PolyOne?
POL IR Presentation (Goldman Sachs Basic Materials Conference - 2016)
��PolyOne Investor Presentation�Goldman Sachs Basic Materials Conference�May 2016��
Forward-Looking Statements
Use of Non-GAAP Measures
PolyOne Commodity to Specialty Transformation
Confirmation of Our Strategy
26 Consecutive Quarters of EPS Growth
PolyOne�At A Glance
Mix Shift Highlights Specialty Transformation
Color and Engineered Materials at the�Heart of Specialty Transformation
Proof of Performance & 2020 Goals
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
Innovation Drives Earnings Growth
Ours is Not a Cost Cutting Story
Design and Service as a Differentiator
Customer First Through World-Class Service
Debt Maturities & Pension Funding
Free Cash Flow and Strong Balance Sheet �Fund Investment / Shareholder Return
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/2023-02/Gravi-Tech BIO Bio-Based Formulations Product Bulletin.pdf
Gravi-Tech™ BIO Bio-Based Formulations
Gravi-Tech™ BIO bio-based formulations are density
modified engineered polymers that contain partially
bio-based resin from renewable plant sources.
They offer a more sustainable alternative to density
modified grades based on prime/virgin polymers.
These polymer formulations have been developed
to achieve equivalent performance to prime density
modified solutions with added sustainability
benefits.
https://www.avient.com/resource-center?document_type=59&page=36
Learn about colorful options for high temperature polymers
Gravi-Tech™ density modified formulations replaces brass in pipe valve
Colorant Chromatics High Temperature Formulations - Product Selection Guide
https://www.avient.com/news/new-franklin-electric-pressure-booster-pump-made-possible-fiberloc-polyone
In addition, we were able to deliver improved flame retardance, enabling the integration of electronics in the booster pump control head to improve cost-effectiveness versus metal or glass-filled polymer alternatives.”
Recognized as a technical leader in its specialties, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications.
PolyOne Corporation, with 2014 revenues of $3.8 billion, is a premier provider of specialized polymer materials, services and solutions.
https://www.avient.com/sites/default/files/2021-02/avient-ir-presentation-goldman-sachs-and-morgan-stanley.pdf
Our exceptional polymer scientists and design engineers are integral to their
product development process.
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F
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M
C
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L
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U
N
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N
F
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C
L
K
R
A
S
C
L
A
S
H
C
E
G
R
A
A
L
B
Median: 5%Median: 3%
Source: Peer data per Bloomberg market data as of February 5, 2021
Avient reflects 2021 estimated revenue of $4,100M and excludes one-time synergy capture CAPEX ($20M)
Avient Specialty
Formulators
Other
Chemical/Specialty
Companies
Free Cash Flow Conversion (1)
2021E (%)
Being asset light helps us to generate
strong free cash flow that is in line
with specialty formulators.
28
We are a specialty formulator that enables many of the world’s products through innovation and custom
solutions.
https://www.avient.com/sites/default/files/2024-06/SEM Asia Product Selection Guide.pdf
SPECIALTY
ENGINEERED
MATERIALS
ASIA PORTFOLIO
BUYING POWER DEMOGRAPHIC
SUSTAINABILITY
URBANIZATION
HEALTHCARE
Healthcare
Packaging
Appliance
Electronics & Electrical
Transportation
Building & Construction
Consumer
We know that you face challenging applications
every day.
We’re ready
to meet all of your supply needs for engineered
polymer formulations and thermoplastic
elastomers.
To learn more about Specialty Engineered Materials, contact Avient at +86 (0) 21 6028 4888
www.avient.com
https://www.avient.com/knowledge-base/case-study/material-cuts-delays-contact-lens-container-production
The manufacturer worked with Avient to formulate a custom Versaflex™ TPE that featured a low durometer with excellent resistance to adhesion (sticking).
Armed with a new specialty TPE solution, the medical manufacturer handled gasket adhesion with a material that outperformed that not only silicone, but also conventional TPEs.