https://www.avient.com/sites/default/files/resources/AVNT Fermium Conference - May 2023 w NonGAAP Recs.pdf
AVIENT: WHO WE ARE 36 24 9 35 • U.S. and Canada • Latin America • Europe, Middle East & Africa • Asia 25,000+ CUSTOMERS Headquartered in Avon Lake, OH (Cleveland) 100+ manufacturing plants Key Financial Data 2023E Sales $3.4 billion 2023E EBITDA $530 million 2023E EPS $2.40 100% ARE CUSTOMIZED SOLUTIONS TO UNIQUE SPECIFICATIONS of sales Guidance as of 2023年5月3日 Webcast WHO WE ARE – VISION, STRATEGY, CULTURE 4 Avient Corporation (NYSE: AVNT) provides specialized and sustainable material solutions that transform customer challenges into opportunities, bringing new products to life for a better world. 我们的专长:MATERIAL SCIENCE 5 CUSTOM FORMULATION M AY 3 , 2023 W EB CAS T Keeping Safety First o Relentless focus on best-in-class safety performance as an ACC Responsible Care® organization Exceeding Customer Expectations o Complementary technologies and customer relationships offer opportunity for future revenue synergies o Proven innovation-led commercial strategy with strong brands and participation across the full value chain Collaboration in Innovation o Leveraging Dyneema®, the world’s strongest fiber™, to accelerate growth of sustainable, ultralight and high performance applications People – Culture is Everything o Talented, passionate and collaborative associates drive an effective integration strategy o Strong Great Places to Work® scores reflect positive integration efforts in first year AVIENT PROTECTIVE MATERIALS INTEGRATION 7 AVIENT PROTECTIVE MATERIALS 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 50% MARINE & SUSTAINABLE INFRASTRUCTURE Towing / Mooring • Aquaculture • Floating Wind • Offshore Cranes 30% CONSUMER Consumer • Outdoor High Performance • Safety Equipment 8 Figures reflect approximate proportions of 2022 sales Q 1 P ER FO RM A N CE Q1 2023 PERFORMANCE VS. National Defense budget of $842 billion submitted to Congress in Q1 2023 • European NATO members annual defense spend expected to increase by up to 20% Dyneema® is the world’s strongest fiber™ One of the highest strength to weight ratios of any material on Earth Direct relationships with industry leading armor manufacturers Resistant to most chemicals, UV, and moisture to handle any environment Avient Confidential 17 DEFENSE Source: US Department of Defense, defense.gov, NATO17 Source: TRANSPORTATION • Increased EPA regulations requiring improved fuel efficiency, enabled in part by lower-weight vehicles • Automakers preparing for 2/3 of U.S. vehicles to be 100% electric by 2032 Lightweight panels that establish both strength and stiffness resulting in decreased energy usage, lower emissions Long-lasting Color applications to resist UV exposure, temperature fluctuations and exceed the stylistic requirements of global automakers 18 $130 $530 $0.60 $2.40 2023 GUIDANCE 19 Sales Adjusted EBITDA $845 $3,400 Adjusted EPS (in millions) (in millions) CASH FLOW / LEVERAGE 20 • Maintaining free cash flow and leverage guidance from February earnings call • IT investment to further integrate acquired businesses and capture operational efficiencies • Restructuring actions to streamline operations and improve profitability, primarily in Europe ($ millions) 2023E Cash Flow from Operating Activities 350$ Less: Run-Rate CapEx (110) CapEx for IT System Upgrade (25) CapEx for Restructuring (15) Total CapEx (150) Free Cash Flow 200$ Adjusted EBITDA 530$ Net Debt / Adjusted EBITDA 2.9x LONG-TERM REVENUE GROWTH DRIVERS Growth Drivers Long-Term Growth Rate Sustainable Solutions 8–12% Healthcare 8–10% Composites 10% Asia / LATAM 5% Other (GDP growth) 2–3% Avient 6.5% 21 Sustainable Solutions 32% Asia / LATAM Composites Other (GDP Growth) 39% • Virtual presentation to be held 2023年9月20日 • The company will be conducting an investor-focused presentation around our sustainability solutions portfolio Avient Confidential 22 SUSTAINABILITY INVESTOR DAY 22 $340M $405M $455M $550M $790M $915M 2016 2017 2018 2019 2020PF** 2021 2022PF*** SUSTAINABILITY FOR A BETTER TOMORROW Revenue From Sustainable Solutions* 2016-2022 ($ in millions) Organic Future Growth Revenue Assumptions From Sustainable Solutions: 8 - 12% 23 *Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”) **2020 is Pro Forma to include full year of the Clariant Color business ***2022 is Pro Forma for the acquisition of Avient Protective Materials and the divestiture of Distribution $1,175M Lightweighting Eco-Conscious Recycle Solutions VOC Reduction Sustainable Infrastructure Human Health & Safety Reduced Energy Use Bio-polymers SUSTAINABILITY NEEDS BY MARKET B&C • Eco-Conscious • Carbon footprint • Resource conservation • Carbon footprint • Bio based content • Eco-Conscious Automotive • Light weighting • Recycled Content • VOC reduction • Recycle Solutions • Carbon Footprint Packaging • Recycle Solutions • Food waste reduction Common Theme: CO2 Emission Goals Increasing Single-Use Plastic Regulation 24 INVESTING IN INNOVATION S U S T A I N A B I L I T Y P O R T F O L I O 25 AP P EN D IX 28 RAW MATERIAL 2022 ANNUAL PURCHASES Performance Additives Pigments 12% TiO2 Dyestuffs 2% Polyethylene Nylon Polypropylene Styrenic Block Copolymer Other Raw Materials 33% ~40% hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials • Cost inflation decelerating, particularly for hydrocarbon-based raw materials 2022 pro forma results for the acquisition of Avient Protective Materials SEGMENT DATA U.S. & Canada 40% 37% 18% 2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY GEOGRAPHY REVENUESEGMENT FINANCIALS 24% Building and END MARKET REVENUE $2,355M $402M $1,300M $272M Sales EBITDA Specialty Engineered Materials Color Additives and Inks $592M$3,653M (1) 9% 30 (1) Total company sales and adjusted EBITDA of $3,653M and $592M, respectively, include intercompany sales eliminations and corporate costs C O L O R , A D D I T I V E S & I N K S 2022 REVENUE | $2 .4 B ILL ION 34% 38% END MARKET REGION 31 34% 21% Building & 1% Energy 2% S P E C I A LT Y E N G I N E E R E D M AT E R I A L S 2022 PRO FORMA REVENUE | $1 .3 B ILL ION END MARKET 52% 35% REGION 32 19% 8%Industrial 9% Defense Building & 32% 27% 14% Building & 3% 1% Defense 1% (18% of sales) 9% 2022 PROFORMA AVIENT REGIONAL SALES BY END MARKET 27% 14% 17% Building & (37% of sales)Transportation 24% 12% Building & US & Canada (40% of sales) 56% 23% Building & 1% LATAM (5% of sales) 3% 33 PEER COMPARISONS AVIENT IS ASSET LIGHT Capex / Revenue 2023E (%) Avient Specialty Other Specialty / Note: Avient reflects 2023 estimated revenue of $3,400 and estimated run-rate CAPEX of $110M. 35 4 4 5 5 5 6 7 9 FREE CASH FLOW CONVERSION Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Investor Presentation_website w Non-GAAP.pdf
Continue fostering our Great Place to Work® culture Strategic ObjectivesStrategic Objectives Long Term Growth Rates Growth DriversGrowth Drivers $340 $455 $790 $1,135 $51 $84 $212 $645 $108 $113 $231 $230 $265 $358 $726 $725 8-12% 8-10% 8-10% 5% Sustainable Solutions Composites Healthcare Asia/Emerging Regions Profitable GrowthProfitable Growth Great Place to WorkGreat Place to Work 5.4% 10.9% 16.0% 2006 2014 2023 EBITDA Margins $0.14 $1.93 $2.36 2006 2014 2023 TOP-TIER SUSTAINABILITY PERFORMANCE AND RECOGNITION Industry Sustainability Standards ESG Ratings Performance 1 87th 94th percentile 5 Avient CDP Score: A- M AY 7 , 2024 W EB CAS T P RE SE N TATI O N 7 REGIONAL DEMAND TRENDS-TOTAL COMPANY Q 1 S A L E S V S P Y ( E X C L U D I N G F X ) 7 +2% -6% Flat +2% Avient ex. Q1 2023 (TOTAL COMPANY) $846 $829 $134 $143 17.3% (in millions) $0.63 $0.76 (in millions) + 7% + 21% Sales Adjusted EBITDA Adjusted EPS 9 - 2% 15.8% +150 bps Q1 2024 SEGMENT PERFORMANCE (COLOR, ADDITIVES & INKS) $537 $515 $91 $97 18.8% (in millions) (in millions) + 7% 10 - 4% 17.0% +180 bps • Year over year demand continues to improve for the segment but slowly due to continued weakness in Europe • Raw material deflation & cost reduction actions primary drivers of adjusted EBITDA growth and margin expansion of +180 bps vs Q1 2023 Q1 2024 SEGMENT PERFORMANCE (SPECIALTY ENGINEERED MATERIALS) $310 $314 $64 $73 23.2% (in millions) (in millions) + 14% 11 + 1% 20.8% +240 bps • Sales growth in defense end market offset by weaker demand in telecommunications end market • Raw material deflation and favorable mix impact from defense sales primary drivers of adjusted EBITDA growth and margin expansion of +240 bps vs Q1 2023 Q1 EBITDA BRIDGE (TOTAL COMPANY) 12 $ millions CAI: Price / Mix (1) Deflation 16 SEM: Price / Mix 4 Deflation 7 Net Price Benefit 26 Wage/Other Inflation (9) FX (2) Q1 2024 $143 Adjusted EBITDA Q1 2023 $ 134 Demand (6) • Positive net price benefit: o Favorable raw material deflation in both segments • Wage and other inflation more than offset cost reductions/synergies 2024 G U IDA N CE FY 2024 GUIDANCE Original Revised Adjusted EBITDA $505 to $535 million $510 to $535 million Adjusted EPS $2.40 to $2.65 $2.50 to $2.65 Interest Expense $105 to $110 million $105 million Adjusted Effective Tax Rate 23% to 25% 23% to 25% Capital Expenditures ~$140 million ~$140 million 14 Q2 2024: Adjusted EPS of $0.71 CE O “TO P O F M IN D ” FO CU S ARE A S AREAS OF FOCUS 16 +7% Drive Profitable Organic Top-Line Growth with Margin Expansion Amplify Innovation Build Leadership & Talent Pipeline AP P EN D IX 19 Performance Additives 15% Pigments TiO2 Dyestuffs Polyethylene 10%Nylon Polypropylene Styrenic Block Copolymer Other Raw Materials 38% ~40% hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials RAW MATERIAL BASKET SEGMENT DATA U.S. & Canada 41% 2023 SEGMENT, END MARKET AND GEOGRAPHY GEOGRAPHY REVENUESEGMENT FINANCIALS 19% 23%Industrial Building and END MARKET REVENUE $2,007M $358M $1,138M $224M Sales EBITDA Specialty Engineered Materials Color Additives and Inks $502M$3,143M (1) 21 (1) Total company sales and adjusted EBITDA of $3,143M and $502M, respectively, include intercompany sales eliminations and corporate costs 2023 REVENUE | $2 .0 B ILL ION 34% 37% 21% END MARKET REGION 22 34% 21% 15% Building & 1% Energy COLOR, ADDITIVES & INKS 2023 REVENUE | $1 .1 B ILL ION 52% 35% 23 6%Industrial 12% 10% Defense Building & END MARKET REGION SPECIALTY ENGINEERED MATERIALS 32% 26% Building & 6% 2% Defense 1% (18% of sales) 2023 AVIENT REGIONAL SALES 25% Building & (36% of sales)Transportation 22% Building & 12% 6% US & Canada (41% of sales) 59% 22% Building & LATAM (5% of sales) 24 BY END MARKET Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special items, to assess performance and facilitate comparability of results.
https://www.avient.com/resources/safety-data-sheets?page=4621
PARENT 167A W/FLUOROPOLYMER PE BLACK W/ANTISTAT PARENT 167A W/INCROSLIP SL
https://www.avient.com/sites/default/files/2022-07/ECCOH 5161 - OFC Blowing Application in Railways - Application Snapshot.pdf
OFC TECHNOLOGY LEADER M I C R O B U N D L E S I N B L O W I N G A P P L I C A T I O N F O R R A I L W A Y S • Strippable with fingers for easy installation/access to fibers • High speed processing at a low wall thickness • Low shrinkage • Resistance to chemicals and filling compounds • Meet XP C93-850-1-1 standard • Re-designed cable to provide advantageous functional and economical value • Improved flexibility compared to PBT and PP tubes, allowing longer blowing distances on paths with angles of 90° • Increased processing speed and improved ease of installation • Provided better cable lifetime value compared to alternative solutions ECCOH™ 6151 UV SEPAP Formulation KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2020-07/case-study-one-pager-custom-pa-grade-led-heat-sink-1.pdf
© 2020, All Right Reserved Avient Corporation, 33587 Walker Road, Avon Lake, Ohio USA 44012 LIGHTING MANUFACTURER H E A T S I N K F O R H I G H P O W E R L E D • PA based grade to replace aluminum • High thermal conductivity ̴ 15 W/mK • Electrically conductive • Easy moulding • Improved light output compared to alternative materials • Improved corrosion resistance and weight reduction • It gave the customer more design possibilities and a more cost effective solution Customized PA based grade KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2021-08/air-fryer-window-one-page-case-study.pdf
COOKWARE MANUFACTURER A I R F R Y E R W I N D O W • Clear, FDA food-contact compliant material that can be run through a dishwasher • Able to withstand long-term steam and heat • Allows injection molding of a complex shape with aesthetics that convey cleanliness and quality • Added concentrate to a natural PES material allowing it to retain clarity and aesthetics in an FDA-compliant solution • Enabled material to withstand sterilization and maintain continuous heat resistance • Provided a more pleasing appearance that could command a greater price point due to perception of higher quality Colorant Chromatics™ PESU Concentrate KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2023-09/Syncure low-voltage wire jacket and insulation case study snapshot.pdf
MAJOR W&C PRODUCER L O W - V O L T A G E W I R E J A C K E T & I N S U L A T I O N • Flame retardance • Heat resistance up to 125°C • Long term insulation resistance (LTIR) • Cold temperature resistance • Offered singular formulation capable of meeting UL-44, UL-4703, UL-1277 and CSA 22.2 listing specifications • Delivered economical solution suitable for multiple end-use commercial and residential applications • Provided on-site technical support to optimize production quality and speed Syncure™ XLPE Cross-linkable Polyethylene Formulations KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/investor-center/news/polyone-expands-specialty-offerings-acquisition-magenta-master-fibers
December 9, 2015 Dec. 9, 2015
https://www.avient.com/investor-center/news/avient-announces-agreement-acquire-dsm-protective-materials-dyneema-and-plans-explore-sale-distribution
9:00 a.m. 9:00 a.m.
https://www.avient.com/investor-center/news/polyone-host-investor-conference-call
9:00 am Eastern Time 9:00 am ET