https://www.avient.com/sites/default/files/2025-01/AVNT Dec 2022 Earnings Presentation Updated.pdf
Purchase price multiple rapidly declining on strength of
business and synergy capture
12
$133
$201
2019PF 2022E
12
Clariant Color EBITDA Growth
Purchase Price Multiple
10.8x
7.0x
6.4x
2019PF 2021 2022E w/ Full
Synergies
(1)
(1)
11.9%
16.3%
2019PF 2022E
EBITDA Margins
(1)
CLARIANT COLOR:
TRANSFORMATIONAL ACQUISITION
($ in millions)
(1) Financial information is pro forma to include a full year of Clariant Color business
SUNBELT PVC Resins DSS
20 Acquisitions
$4.8B
Investment
$2.7B of Annual
Revenue
5 Divestments
$2.3B Proceeds
TPE
PP&S
HISTORI C SPECI AL IZATION THROUGH M& A
13
Distribution
DSM Protective
Materials
BOLT-ON AC QUI SITI ON HISTORY
14
Commercial
Resources
Operating Income
($ in millions)
Operating Margins
259
363
At Acquisition 2022E
$40
$139
At Acquisition 2022E
9%
22%
At Acquisition 2022E
Established Acquisitions
(> 7 years)
+ 40% + 248% + 1300 bps
I N V E S T T O G R O W
S P E C I A LT Y T R A N SF O R M ATI O N
T O D A Y
7%
46%
67%
86%
100%
0%
20%
40%
60%
80%
100%
2005 2010 2019 2021 2022 PF
%
o
f
A
d
ju
st
e
d
E
B
IT
D
A
• Commodity JVs
• Distribution
• Performance Products & Solutions
• Specialty Businesses
(1) Adjusted EBITDA is EBITDA excluding corporate costs and special items
(2) Pro forma for the acquisition of Dyneema® and divestiture of Distribution
(1
)
(2)
15
Healthcare
4%
Packaging
8%
Consumer
10%
Building &
Construction
43%
Industrial
15%
Transportation
14%
Energy
4%
Telecom.
2%
2006 2022 Pro Forma
Healthcare
8%
Packaging
23%
Consumer
21%
Building &
Construction
10%
Industrial
15%
Transportation
9%
Energy
4%
Telecom.
4%
Defense
6%
END MAR KET F OCUS ON LESS CYCL IC AL
I ND USTRI ES
16
14.8%
17.6%
21.0%
2018 2020 2022 PF
1.8%
2006
15.3%
16.2%
17.0%
2018PF 2020PF 2022E
CAI
2.7%
2006
SEM
SPEC IA LTY EBI TDA MA RGI N EX PANSION
17
• Portfolio transformation
accelerates growth in less
cyclical, higher margin end
markets
• Investments in our
composites platform
continue to drive margin
expansion
(1) (1)
(1) 2018 and 2020 financial information is pro forma to include a full year of Clariant Color acquisition
PORTFOLIO EVOLUTION OVER THE YEARS
18
Adj.
O P S )
21
Sales Adjusted EBITDA
$818
$823
2021 2022
+ 1%
Adjusted EPS
+ 8% - 3%
(in millions) (in millions)
(+ 9% excluding FX) (+ 18% excluding FX) (+ 5% excluding FX)
Q3 EBITDA BRIDGE
( P R O F O R M A T O TA L C O M PA N Y )
22
Price increases more than
offset raw material and
supply chain impacts
$ millions
CAI:
68Price / Mix
(44)Inflation
SEM:
41Price / Mix
(26)Inflation
39Net Price Benefit
(14)Wage and Energy Inflation
6Clariant Color Integration Synergies
14Incentives, Other Employee Costs
(11)FX
$137 Q3 2022
Adjusted
EBITDA
$ 142Q3 2021
(39)Demand
Q3 2022 SEGMENT PERFORMANCE
23
CAI
$587
$566
Sales
($ in millions)
$93 $93
EBITDA
SEM Pro Forma
$326 $319
Sales
$70
$62
EBITDA
(+ 4% excluding FX)
- 4% - 2%
(+ 5% excluding FX)
Flat
(+ 7% excluding FX)
- 11%
(- 7% excluding FX)
$500
$585
Cont.
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/investors/events-presentations?page=8
PolyOne IR Presentation - Recast Financial Information - ASU 2017-07 - Pension and Postretirement Costs - 4/26/2018
https://www.avient.com/investors/events-presentations?page=3
PolyOne IR Presentation - Recast Financial Information - ASU 2017-07 - Pension and Postretirement Costs - 4/26/2018
https://www.avient.com/investors/events-presentations?page=5
PolyOne IR Presentation - Recast Financial Information - ASU 2017-07 - Pension and Postretirement Costs - 4/26/2018
https://www.avient.com/investors/events-presentations?page=0
PolyOne IR Presentation - Recast Financial Information - ASU 2017-07 - Pension and Postretirement Costs - 4/26/2018
https://www.avient.com/investors/events-presentations?page=1
PolyOne IR Presentation - Recast Financial Information - ASU 2017-07 - Pension and Postretirement Costs - 4/26/2018
https://www.avient.com/investors/events-presentations?page=10
PolyOne IR Presentation - Recast Financial Information - ASU 2017-07 - Pension and Postretirement Costs - 4/26/2018
https://www.avient.com/investors/events-presentations?page=11
PolyOne IR Presentation - Recast Financial Information - ASU 2017-07 - Pension and Postretirement Costs - 4/26/2018
https://www.avient.com/sites/default/files/2024-03/Terms and Conditions of Sale for the United Arab Emirates.pdf
In no event shall Seller be liable for any damages and/or
costs due to delay in delivery.
Except to the extent solely attributable to the gross
negligence or willful misconduct of Seller, Buyer will indemnify, defend
and hold Seller harmless from all costs, expenses, damages, judgments or
other loss, including without limitation costs of investigation, litigation and
reasonable attorney’s fees (“Buyer Indemnity Costs”), arising out of
Buyer’s selection, use, sale or further processing of the Product or Buyer’s
product made therefrom.
Buyer shall indemnify,
defend and save Seller harmless against any and all liability for Buyer
Indemnity Costs arising out of or in any way connected with Buyer’s
failure to disseminate such information.
https://www.avient.com/sites/default/files/2024-03/Terms and Conditions of Sale for Slovakia.pdf
In no event shall
Seller be liable for any damages and/or costs due to delay
in delivery.
Except to the extent solely attributable to the
gross negligence or willful misconduct of Seller, Buyer
will indemnify, defend and hold Seller harmless from all
costs, expenses, damages, judgments or other loss,
including without limitation costs of investigation,
litigation and reasonable attorney’s fees (“Buyer
Indemnity Costs”), arising out of Buyer’s selection, use,
sale or further processing of the Product or Buyer’s
product made therefrom.
Buyer shall indemnify,
defend and save Seller harmless against any and all
liability for Buyer Indemnity Costs arising out of or in any
way connected with Buyer’s failure to disseminate such
information.