https://www.avient.com/sites/default/files/2022-04/Avient Acquisition of Dyneema and Q1 2022 Results_0.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to: • The time required to consummate the acquisition of the Dyneema business, the satisfaction or waiver of conditions in the purchase agreement, the ability to obtain required regulatory or other third-party approvals and consents and otherwise consummate the proposed acquisition of the Dyneema business; • Our ability to achieve the strategic and other objectives relating to the proposed acquisition of the Dyneema business and possible sale of the Distribution business; • Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; • The effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks; • The current and potential future impact of the COVID-19 pandemic on our business, results of operations, financial position or cash flows, including without any limitation, any supply chain and logistics issues; • Changes in polymer consumption growth rates and laws and regulations regarding plastics in jurisdictions where we conduct business; • Fluctuations in raw material prices, quality and supply, and in energy prices and supply; • Production outages or material costs associated with scheduled or unscheduled maintenance programs; • Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; • Our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends; • Information systems failures and cyberattacks; • Amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions; and • Other factors described in our Annual Report on Form 10-K for the year ended 2021年12月31日 under Item 1A, “Risk Factors.”Outdoor High Performance) 8 18% 3 Growth in Asia / LATAM 6 3% 2 Other 100 19% 5 Sub-total $1,327 14% $146 Outdoor High Performance Impact (5) (3) Wage Inflation and Overtime (11) Other Supply Chain Costs (4) Synergies 5 Incentives, Other Employee Costs 8 FX (28) (5) Q1 2022 $1,294 11% $136 Q1 2022 SALES AND OPERATING INCOME ( T O TA L C O M PA N Y ) 6 Sales Growth Rate Adjusted Operating Income$ millions Adjusted EBITDA Q1 EBITDA BRIDGE 7 Price increases more than offset raw material and supply chain impacts Q1 2021 $ 161 Demand (23) $ millions CAI: Price / Mix 77 Inflation (54) SEM: Price / Mix 41 Inflation (26) Distribution: Price / Mix 84 Inflation (82) Net Price Benefit 40 Wage Inflation and Overtime (11) Other Supply Chain Costs (4) Synergies 5 Incentives, Other Employee Costs 8 FX (5) Q1 2022 $ 171 China Lockdowns / Russia Impact $ (7) Transportation (7) Outdoor High Performance (3) Q1 EPS BRIDGE 8 Q1 2021 - Adjusted EPS 0.89$ CAI 0.08 Specialty Engineered Materials 0.06 Distribution 0.00 Corporate Costs 0.02 F/X (0.04) Segment OI 0.12 Tax Rate (0.02) Q1 2022 - Adjusted EPS 0.99$ 10 15x stronger than steel Reduces weight by 30% vs. other solutions Well-maintained global asset base poised to serve growing demand • Purchase price of $1.48B represents 11.4x multiple of 2022 EBITDA • Acquisition will expand Avient’s composites and fiber portfolio with Dyneema®, the World’s Strongest Fiber™ • $415M sales and 30%+ EBITDA margins; Immediately accretive to pro forma 2022 EPS, adding $0.35 • 1,300 patents globally, ~50% of sales patent protected • 1,000+ employees across global production network and dedicated technology centers • Composites platform will increase from $261M to $680M in revenue and from $49M to $180M in EBITDA Indicates Dyneema ® location $175M (42%) $65M (16%) $175M (42%) 2022E Sales By Region ($M) (1) $0.35 EPS excludes intangible amortization (2) Based on 2022 expected results (1) (2) (2) F I T W I T H F O U R P I L L A R S T R AT E G Y 11 Specialization • Innovation-led organization with tremendous intellectual property value in trademarks, patents and “know-how” • Deep history of application development and premium, leading brand with the World’s Strongest FiberTM Globalization • Global customer base with an established presence across all major geographic regions • Global technology centers complement existing Composites applications and expertise Operational Excellence • Best-in-class safety performance • Well-run and maintained asset base fit to serve future growth • Highly effective and reliable supply chain with emphasis on optimizing service to customers Commercial Excellence • Deep customer relationships extend across the value chain and drive ability to grow • Offer a full suite of services with an active role in design, development and commercialization People Experienced and talented associates with a passion for safety, specialization and winning DY N E E M A ® OV E RV I E W K E Y I N D U S T R I E S PERSONAL PROTECTION Military • Law Enforcement • First Responders Body Armor • Helmets • Vehicle Protection $215M MARINE & SUSTAINABLE INFRASTRUCTURE Towing / Mooring • Aquaculture • Floating Wind • Offshore Cranes $130M CONSUMER Consumer • Outdoor High Performance • Safety Equipment $70M 12 Figures reflect 2022 expected sales MIFOverview Competition Value chain & Go-to-market Strategy Innovation Financials TECHNOLOGY 13 1,200 1,300 2,500 Avient Dyneema Combined Patents • True specialty business – the World’s Strongest Fiber™ • Deep history of application development with customers, strongest in the industry • The only UHMwPE (ultra-high molecular weight polyethylene) fiber producer that is backward integrated o Provides innovation advantage through control of all steps of the process • Complementary with our existing reinforced film expertise (PolyStrand) and engineered fiber presences (Fiber-Line) WINNING PROPERTIES Ultra high strength vs. weight Highly flexible Floats on water Chemically inert; no smell/taste and non-toxic High resistance to UV radiation Self-lubricating, with low friction One-of-a-kind technology ® FORMULATION PROCESS 14 • Like Avient, Dyneema® offers similar core competencies around formulation and material science • Technology that combines polymers and fibers to provide specialized, high performing solutions for customers • Design capabilities ensure that applications are highly customized for the specified end use DYNEEMA ® IN THE VALUE CHAIN 15 UHMwPE Fiber / Tapes Military Personnel, Law Enforcement Heavy Marine, Offshore Wind Energy and Mooring, Aquaculture Outdoor, Footwear, Apparel, Inflatables • Material Science • Formulation • Service INTERMEDIATE MANUFACTURING (CUSTOMERS) OEM / APPLICATION DEMAND TRENDS 16 • Military spending and near-term demand for higher performing personal protection products (like Dyneema®) expected to increase o European NATO members annual defense spend expected to increase by up to 20%(1) o Accelerated launch of next generation technology in North America • Policy-driven demand for sustainable energy; growth in floating offshore wind farms which require advanced, durable technology o Offshore wind expected to grow at a CAGR of 32% with the level of annual installations quadrupling over the next five years(2) • Continued investment in aquaculture as a sustainable food source(3) • Strong demand in outdoor high performance space across niche consumer applications aligns with 10% growth assumption for Avient’s Composites portfolio Sources: (1) “Funding NATO”, NATO.int (2022年4月1日) (2) “Global Wind Report 2021”, Global Wind Energy Council (3) “Aquaculture Supports a Sustainable Earth”, NOAA Fisheries 17 A L I G N M E N T W I T H S U S T A I N A B I L I T Y G O A L S P RO D U C T S AVIE NT ’S E XIS T ING COM P OS IT E S P ORT F OL IO D I V E R S E C A P A B I L I T I E S A N D S O L U T I O N S S E R V I N G M A N U F A C T U R E R S A N D O E M S LFT Tapes Laminates/Panels Shapes Pultrusion Engineered Fibers 18 AV I E N T ’ S C O M P O S I T E S P O RT F O L I O S A L E S A N D E B I T DA 19 $74 $84 $216 $212 $261 $5 $10 $32 $41 $49 $180 0 50 100 150 200 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 2017 2018 2019 2020 2021 2022E $680 ($ in millions) • Dyneema® acquisition will further improve Composites EBITDA margins to 26% • Dyneema® will complement our existing portfolio with deep formulation expertise, innovative culture and global commercial presence • Composites will continue to be a key growth driver to deliver future revenue growth in excess of GDP (1) Pro forma for the acquisition of Dyneema® (1) D I S T R I BU T I O N D I V E S T I T U R E C O N S I D E R AT I O N S D I S T R I BU T I O N H I G H L I G H T S 21 $21 $57 $69 $94 $105 0 50 100 150 2006 2011 2016 2021 2022E • Leading North American Distribution business with longstanding blue-chip supplier and customer relationships • Commercial excellence and regulatory knowledge have grown healthcare portfolio to over 25% of sales and positioned business for long-term growth • Highly specialized portfolio of engineered polymers along with sustainable solution offerings • Leading digital capabilities through Avient Now, allowing enhanced visibility and 24/7 interface with customers • 98% free cash flow conversion drives greater than 30% after-tax return on invested capital (ROIC) • Potential divestiture allows us to remain modestly leveraged with net debt to adjusted EBITDA expected to be 2.9x and positions us for further specialty growth in the future EBITDA (in $M) DY N E E M A ® T R A N S AC T I O N OV E RV I E W 22 - $1.48B net purchase price - Represents 11.4x expected 2022 EBITDA - Committed financing in place - Permanent financing to be combination of available cash on-hand, new Senior Unsecured Notes, new Senior Secured Term Loan - Potential proceeds from Distribution divestment could be used to pay down near-term maturing debt - Closing expected in second half of 2022, subject to regulatory approvals and certain customary closing conditions Transaction Value Financing Closing Conditions / Timing C A P I TA L S T RU C T U R E / L E V E R AG E 23 • Financing commitments secured from Morgan Stanley and J.P. Financials are pro forma for the acquisition of Dyneema® and potential divestiture of Distribution Avient Specialty Formulators Other Specialty / Chemical Companies 30 CULTURE AND PEOPLE 31 O U R S P E C I A LT Y J O U R N E Y C O N T I N U E S 32 • Dyneema® brings leading technology and brand with the World’s Strongest Fiber™, deep history of application development and strong management team focused on specialty applications • Dyneema® transaction is aligned with our previously stated acquisition goal of expanding our composites and fiber capabilities • Similar to our other technology expansion acquisitions, Dyneema® allows us to leverage our invest-to-grow strategy • We plan to explore a possible sale of our Distribution business.
https://www.avient.com/sites/default/files/2024-06/CM Europe Ltd Modern_Slavery_Statement - 2024 V4.pdf
During 2023 we continued to work with our key supplies in order to clarify our expectations regarding their compliance with the Modern Slavery Act 2015 and any other applicable anti-slavery laws. More information about Avient and its locations can be found on our website – www.Avient.com Our policies on slavery and human trafficking The Avient Code of Conduct establishes a clear set of ethical and behavioral standards for the employees of Avient for our business conduct. In the Avient Supplier Code of Conduct, which is applicable to the suppliers of ColorMatrix, Avient prescribes that its suppliers should not use slavery or human trafficking in connection with any product supplied to Avient.
https://www.avient.com/sites/default/files/2021-03/packaging-solutions-for-film-sheet-product-selection-guide.pdf
PACKAGING SOLUTIONS Film & Sheet SELECTION GUIDE PRODUCT NAME PROPERTIES & APPLICATIONS Anti-block BOPET application (PV back sheet, packaging film, industry film) Sleeve application (PETG) Anti-static Migrating anti-static system Flame retardant Halogen free flame retardant system, transparent, UL94 VTM-0 Light stabilizer Protection for outdoor application (UV 380nm) Protection for screen application (UV 400nm) Matting agent Matting agent Pinning agent Increased conductivity O 2 scavenger Content protection against oxygen White masterbatch Blue shade white Standard white Black masterbatch Carbon black Cool black system BOPET STANDARD PRODUCT PORTFOLIO PRODUCT NAME PROPERTIES & APPLICATIONS Anti-block Standard anti-block Printable A/B/A PET sheet and film High-transparent and low COF Anti-static A/B/A film or sheet (transparency) A/B/A film or sheet (matte) Impact modifier Improve sheet elongation at low temperature Chain extender IV improver, EU food and FDA approved White masterbatch Standard white Matting agent Surface matting agent APET SHEET PRODUCT PORTFOLIO PRODUCT NAME PROPERTIES & APPLICATIONS Slip agent Mainly used for multilayer PE/PP film and composite film Anti-block Pure anti-block can be used in transparent film Contain both anti-block and slip agent for polyolefin film Processing masterbatch Used in blowing and tape casting of PE/PP (liquid) Anti-oxidant Protection of film from degrading while processing Increase reclaimed ingredients in the formula Light stabilizer Protection of content Low precipitation, which is especially suitable for thinner PE products, such as film and spinning Anti-fog Good resistance to cold and hot fog, and suitable for thinner film Anti-static Applicable to multilayer PE/PP film and composite film PO SHEET PRODUCT PORTFOLIO www.avient.com Copyright © 2021, Avient Corporation. Avient makes no warranties or guarantees respecting suitability of either Avient’s products or the information for your process or end-use application. You have the responsibility to conduct full-scale end-product performance testing to determine suitability in your application, and you assume all risk and liability arising from your use of the information and/or use or handling of any product.
https://www.avient.com/sites/default/files/2024-07/avient-human-rights-position-statement-updated-july-2021 %286%29.pdf
These principles are integrated into our core values of Integrity, Honesty and Respect and are reflected in our guidelines for ethical behavior, as outlined in the Avient Code of Conduct and Supplier Code of Conduct. Avient complies with all applicable local laws, including those pertaining to wages, overtime and benefits. Our suppliers and partners understand that our relationship is based on an expectation of compliance with applicable laws and regulations and adherence to internationally recognized environmental, social, corporate governance and management systems standards.