https://www.avient.com/sites/default/files/resources/Proxy%2520Statement%2520for%2520Web%2520Hosting.pd_.pdf
Pay-for-Performance: 2018 Compensation Outcomes.
2018 Annual Incentive Program:
-2018 Long-Term Incentive Program:
COMPENSATION DISCUSSION AND ANALYSIS
Listening to Shareholders.
Weighting
Base
Salary
Weighting
Annual
Incentive
Weighting
Long-
Term
Incentive
COMPENSATION DISCUSSION AND ANALYSIS
Consolidated
Company
Adjusted
Operating Income
60%
Consolidated
Company
Revenue
25%
Consolidated
Company
Working Capital
as a Percentage
of Sales
15%
Corporate Annual Plan
We ightings
Adjusted
Operating Income
(Business Unit
results)
40%
Adjusted
Operating Income
(consolidated
Company results)
20%
Business Unit
Revenue
25%
Business
Segment
Working Capital
as a Percentage
of Sales
15%
Busine ss U nit Annual Plan
We ightings
COMPENSATION DISCUSSION AND ANALYSIS
2018 Corporate Plan (Patterson, Richardson, Garratt, Kunkle)
Measure Weighting Threshold Target Maximum Results Payout %
2018 CAI Plan (Crist)
Measure Weighting Threshold Target Maximum Results Payout %
Long-Term Incentive.
Cash-Settled
Performance
Units
30%
Stock
Appreciation
Rights
35%
Restricted
Stock Units
35%
2018 Long -Term Incent ive Pl an
Vehic l es and Weigh tings
COMPENSATION DISCUSSION AND ANALYSIS
Performance Period Weighting
Stock-Settled Stock Appreciation Rights.
https://www.avient.com/sites/default/files/2024-03/Alternatives to Nylon 6_6 Brochure %281%29.pdf
PA 6,6
Lower short- and long-term thermal performance
Harder to color
More limited process window
PBT/PET | POSSIBLE APPLICATIONS:
Electrical & Electronics
BENEFITS VS.
PA 6,6
Lower toughness properties
Higher density
Lower short- and long-term temperature resistance
Lower hydrolysis resistance
PP | POSSIBLE APPLICATIONS:
Automotive, Consumer Goods,
Lightweighting Applications
BENEFITS VS.
PA 6,6
Reduced rigidity/stiffness
Much lower abrasion resistance
Lower electric resistance
Reduced short- and long-term temperature
resistance
PC/PBT & PC/PET BLENDS |
POSSIBLE APPLICATIONS: Automotive Interiors,
Consumer Goods, Household Appliances
BENEFITS VS.
https://www.avient.com/sites/default/files/2022-09/Cesa Aversive Product Bulletin.pdf
Cesa™ Aversive Technology for Wire & Cable Protection
Masterbatch additives for long-term cable protection against rats
and termites, compliant with the EU Biocidal Product Regulation (BPR)
PRODUCT BULLETIN
PRODUCT DESCRIPTION
Cesa™ Aversive Technologies are masterbatches
which, when incorporated into cable jackets,
provide long-term protection against gnawing
by rats and termites.
TECHNOLOGY BENEFITS
• Helps provide long term cable protection against
rats and termites
• Enables manufacturers and cable users to be
compliant with EU Regulations
• Easy to use, direct incorporation in the jacket,
no need for additional layer to protect the cable
• Helps avoid unplanned service breakdowns
with associated high repair costs
1 CA-Sept15-Doc.6.2- Final
2 A masterbatch should be regarded as a biocidal product if it is has a biocidal function.
https://www.avient.com/sites/default/files/2022-03/Avient 2022 Proxy Statement.pdf
Long-Term Incentive.
We also believe that long-
term incentive compensation is an important retention tool.
The 2021-2023 Long-Term Incentive Program
awards were granted under the 2020 Plan.
https://www.avient.com/sites/default/files/resources/PolyOne%25202013%2520Annual%2520Report.pdf
Š To develop our expected long-term
return on plan assets, we consider our
historical long-term asset return
experience, the expected investment
portfolio mix of plan assets and an
estimate of long-term investment
returns.
The term loan
was recorded at par value less a discount.
Total interest paid on long-term and
short-term borrowings was $50.4 million in 2013, $45.8 million in 2012 and $32.0 million in 2011.
https://www.avient.com/sites/default/files/2023-09/Avient Sustainability Day 2023 - Website %289.19%29.pdf
They use words such as "will," “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” and other words and terms of similar meaning in connection with any discussion of future operating or
financial condition, performance and/or sales.
Louie LaBonte – Print Specialist, Standards & Capabilities
“Avient has been a tremendous long-term partner with IVCC in the development of
insecticide treated mosquito nets in the global fight against Malaria.”
Plastics Pact
Post-Consumer Recycle (PCR)
Color Predictive Tool
Innovation Award, Winner:
Plastics Industry Association
Product Technology Innovation, Winner:
Plastics Recycling Awards Europe 2023
Additive for
Enhanced Recycling
Innovation Award, Finalist:
Plastics Industry Association
Product Technology Innovation, Finalist:
Plastics Recycling Awards Europe 2023
Service Innovation
Enables Quality Recycle
Product Innovation
Enables PCR Claims + Low CO2
Product Innovation
Protects Quality Recycle
…are Growing at Twice the Rate as
Conventional Products
Sustainably-Branded Products…
Consumers
Are demanding
recyclability and eco-
conscious products
Governments
Are mandating changes
through legislation, taxes,
and regional accords
STAKEHOLDER INFLUENCE DRIVES DEMAND
For Sustainable Products From Sustainable Companies
Brand Owners
Have committed to ambitious
goals to achieve
sustainability metrics
Avient Corporation 77
Avient Corporation 78
SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH
8-12%
Long Term
Growth
18
46
2023 2032
Global Offshore Annual
Wind Installations
(in Gigawatts)
50
90
2022 2030
Medical Plastics
Market Size
(in $Billions)
2020 2030
12%
CA
GR
3%
CA
GR
Recycled
Plastics
Virgin
Plastics
Growing Demand for
Recycled Content
Avient Sustainable
Solutions
11
%
CA
GR
8%
CA
GR
Sources: McKinsey, Bloomberg, Grand View Research
Avient Corporation 79
Increasing the use
of recycled content
Reducing weight to
lower fuel consumption
2022 SALESDESCRIPTION
$340M
$310M
$525M
OUTCOMES
Enabling customers to
advance the circular economy
Shrinking carbon footprint
and decreasing emissions
Making our planet a better
place for all
Using fewer natural resources;
protecting human life
$1,175MTOTAL SALES
SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH
AVIENT IS WELL-POSITIONED
A Clean House
Avient holds leading ratings on
ESG matters of importance to
customers, countries, and
key stakeholders
Leading Portfolio
Our formulation expertise and materials
are meeting the unique sustainability
needs of our customers around the world
in endless applications
8-12% Long-Term Growth RateAvient’s Sustainable Solutions
Investing in Innovation
85% of our opportunity funnel is
directed at sustainable solutions
addressing unmet customer needs
Avient Corporation 80
Avient Corporation 81
ADJUSTED EBITDA MARGIN EXPANSION
• 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%
17.3%
20% 20.0%
2006 2018 2023E Recovery Growth
Drivers
Strategic
Objective
20%+
+1%+
+3%+
Community Service
7x Safer
than Industry Average
World-Class Safety
Leadership Development
Over $19 million
raised since 2007
Diversity & Inclusion
PEOPLE AND CULTURE
Avient Corporation 82
Avient Corporation 83
• 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
LONG-TERM OBJECTIVES
Avient Corporation 84
Wrap Up and Q + A
Bob Patterson
Chairman, President, and Chief Executive Officer
Avient Corporation 85
Investor Deck_9_19_23 v4_WEBSITE_GAAP.pdf
2023 SR Non-GAAP Rec v3
https://www.avient.com/sites/default/files/resources/PolyOne%25202015%2520Annual%2520Report.pdf
We offer payment terms to our customers that are competitive.
Š To develop our expected long-term
return on plan assets, we consider
historical and forward looking long-term
asset returns and the expected
investment portfolio mix of plan assets.
Short-term investments in common collective funds represent cash and other short-term
investments.
https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202012%2520-%2520Critical%2520Imperatives.pdf
Patterson
Page 101
Critical Imperatives – Near Term
• Successfully integrate ColorMatrix with
“Invest to Grow” strategy
• Accelerate cross-selling and leverage Lean Six
Sigma to drive sales-force effectiveness and Sigma to drive sales-force effectiveness and
improve execution
• Overcome current demand weakness in
Europe and beat our 2012 goals!
Page 102
Critical Imperatives – Medium to Long Term
• Continue cultural and paradigm shift from
commodity compounder to collaborative formulator
as One PolyOne
• Accelerate innovation and leverage megatrends to
improve our mix of business with higher-margin improve our mix of business with higher-margin
specialty products
• Increase specialty contribution and advance
globalization via acquisitions
• Drive relentless execution and creative innovation as
key competitive differentiators
Page 103
2011
Proforma ColorMatrix
2015 Target
“Where we are” “Where we expect to be”
1) Operating Income %
Specialty 8.9%
PP&S 7.2%
12 – 16%
9 – 12%
Elevating our Expectations and Yours
PP&S 7.2%
Distribution 5.6%
2) Specialty Platform
% of Operating Income
50%
3) ROIC* (after-tax) 10%
4) Adjusted Annual
EPS Growth
3 yr CAGR = 71%
9 – 12%
6 – 7.5%
65 – 75%
15%
Double Digit Expansion
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
Page 104
https://www.avient.com/sites/default/files/2022-12/15719637-22-AVIENT ESPAÑA SL-INGLES.pdf
C/ Valportillo Primera 22-24, Edificio Caoba, 28108 Alcobendas - Madrid, España
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2022-12-15T10:52:43+0100
Authenticity and Integrity
2022-12-15T10:53:51+0100
BUREAU VERITAS CERTIFICATION
https://www.avient.com/sites/default/files/2020-10/investing-in-avient.pdf
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.
It’s important to note that future revenue synergies through increased innovation and
commercial excellence are not part of these estimates and will represent additional
growth over the long term.
In the near term we expect substantial earnings and cash flow gains as we emerge from the COVID-19
pandemic.