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 FCF $ AVNT FCF Conversion % S&P FCF 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 DA 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/investor-center/news/polyone-announces-first-quarter-2018-results
is a premier provider of specialized polymer materials, services and solutions.
Specialty Engineered Materials
Specialty Engineered Materials
https://www.avient.com/resource-center/knowledge-base/article/material-solutions-expanding-ev-charging-infrastructure?sust%5B0%5D=1136
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.
Antimicrobial and antifungal additives can protect the user interfaces and touchpoints from mold, mildew, and bacteria, while antistatic and conductive formulations can prevent static discharge and create safer, statically dissipated plastic parts.
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/resource-center/knowledge-base/article/material-solutions-expanding-ev-charging-infrastructure?sust%5B0%5D=1135
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.
Antimicrobial and antifungal additives can protect the user interfaces and touchpoints from mold, mildew, and bacteria, while antistatic and conductive formulations can prevent static discharge and create safer, statically dissipated plastic parts.
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/resource-center/knowledge-base/article/material-solutions-expanding-ev-charging-infrastructure?rtype%5B0%5D=1164
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.
Antimicrobial and antifungal additives can protect the user interfaces and touchpoints from mold, mildew, and bacteria, while antistatic and conductive formulations can prevent static discharge and create safer, statically dissipated plastic parts.
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/news/polyone-provides-new-twist-aluminum-cap-liners-low-migration-tpe-technology-pack-expo-2015
This Versaflex™ PKG TPE is formulated for aluminum caps used for sealing glass, polyethylene terephthalate (PET), or aluminum containers.
As an extension of GLS compression-molded cap liner technology, this non-PVC Versaflex PKG is formulated for aluminum caps used for sealing glass, polyethylene terephthalate (PET), or aluminum containers.
PolyOne Corporation, with 2014 revenues of $3.8 billion, is a premier provider of specialized polymer materials, services and solutions.
https://www.avient.com/resource-center/knowledge-base/article/material-solutions-expanding-ev-charging-infrastructure
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.
Antimicrobial and antifungal additives can protect the user interfaces and touchpoints from mold, mildew, and bacteria, while antistatic and conductive formulations can prevent static discharge and create safer, statically dissipated plastic parts.
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/news/polyone-colormatrix-technology-enables-energy-savings-china’s-pet-packaging-converters
Steven Chai, general manager, ColorMatrix Asia, said, “Joule RHB formulations have successfully delivered value through production efficiency and enhanced post-consumer recyclability for customers around the world.
We currently manufacture Joule formulations at our facility in Suzhou for customers in other countries throughout Asia Pacific, enabling us to go to market in China immediately with local technical support and short lead times,” added Chai.
PolyOne Corporation, with 2013 revenues of $3.8 billion, is a premier provider of specialized polymer materials, services and solutions.
https://www.avient.com/news/polyone-expands-its-reach-advanced-composite-materials-jec-world-2019
Also taking center stage is an expanded portfolio of long fiber thermoplastic materials, including PlastiComp Complēt™ LFT formulations.
PlastiComp Complēt™ long fiber reinforced thermoplastic composite formulations
PolyOne Corporation, with 2018 revenues of $3.5 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.
D is t. ) R P M P P G K W R F U L A V Y G C P IF F F M C H X L H U N E M N F O E E C L K R A S C L A S H C E G R A A LB 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.