https://www.avient.com/idea/brooks-running-sets-pace-growth
Performance improvement: At the highest energy impacts, based on 7 to 9 mph for a large runner, Brooks testing shows the TPE-based system provides a 30-50 percent improvement in cushioning over traditional systems.
https://www.avient.com/sites/default/files/2022-03/AVNT Mar 2022 Presentation.pdf
WHY AVIENT WINS Deep Customer Relationships & Application Know-How Superior Design Capabilities & Advanced Analytics Global Footprint Strategically Aligned to Serve Customers We iterate fast and often. 38 21 9 34 • U.S. and Canada • Latin America • Europe, Middle East & Africa • Asia We produce locally, serve globally. Purchase price multiple rapidly declining on strength of business and synergy capture 14 $133 $205 2019PF 2021 14 Clariant Color EBITDA Growth Purchase Price Multiple 10.8x 7.0x 6.1x 2019PF 2021 2021 w/ Full Synergies 11.9% 16.2% 2019PF 2021 EBITDA Margins CLARIANT COLOR: TRANSFORMATIONAL ACQUISITION (1) Financial information is pro forma to include a full year of Clariant Color business ($ millions) Initial Synergy Estimate 2021 Synergy Realization Total Synergies Expected Administrative $ 18 $ 29 $ 40 Sourcing 24 20 24 Operational 18 5 21 Total Synergies $ 60 $ 54 $ 85 CLARIANT COLOR INTEGRATION & COST SYNERGIES UPDATE 15 • Integration going extremely well: synergy target increased to $85 million at December 9th Investor Day • Relentless focus on guiding principles of safety first, employee collaboration and exceeding customer expectations • Future revenue synergies are not part of these estimates and represent additional growth over the long term SUSTAINABILITY FOR A BETTER TOMORROW • Revenue from sustainable solutions grew 16% in 2021 and expected to grow 8-12% in 2022 as our innovation efforts and collaboration with customers accelerates • Investments centered around innovation and global sustainability megatrends o Enabling a circular economy – Technologies that allow for increased use of post-consumer recycled (PCR) material and improve recyclability of plastics o Light-weighting – Composites and CAI applications to reduce weight and material requirements, which minimize energy and carbon emissions o Eco-Conscious – Health and human safety applications as well as Avient’s alternative materials to replace lead, PVC, halogens, BPA and other less eco-friendly options *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 2016 2017 2018 2019 2020PF** 2021 $405M $455M $550M $790M Revenue From Sustainable Solutions* 2016-2021 $915M $340M PEOPLE C U L T U R E I S E V E R Y T H I N G Community Service 7x Safer than Industry Average World-Class Safety Leadership Development Over $16 million raised since 2010 Diversity & Inclusion 17 Q4 2020 $997 $80 Sustainable Solutions 23 12% 8 Healthcare 53 43% 9 Composites 7 22% 2 Growth in Asia / LATAM 14 10% 3 Other 118 23% 2 Sub-total $1,212 22% $104 Wage Inflation and Overtime (11) Other Supply Chain Costs (4) Synergies 9 Incentives, FX, Other Employee Costs (10) (13) Q4 2021 $1,202 21% $85 Q4 2021 SALES AND OPERATING INCOME 18 Sales Growth Rate Operating Income$ millions EBITDA Q4 EBITDA BRIDGE 19 Price increases more than offsets raw material and supply chain impacts Q4 2020 $ 118 Demand - $ millions CAI: Price / Mix 62 Inflation (45) SEM: Price / Mix 25 Inflation (20) Distribution: Price / Mix 114 Inflation (109) Net Price Benefit 27 Wage Inflation and Overtime (11) Other Supply Chain Costs (4) Synergies 9 Incentives, FX, Other Employee Costs (13) Q4 2021 $ 126 Transportation (5)$ Outdoor High Performance (3) Other 8 Total Demand - Q4 2021 SEGMENT PERFORMANCE 20 $526 $581 SEM Distribution $58 $61 + 11% + 6% $305 $425 $18 $22 + 39% + 22% $191 $228 $30 $29 + 19% - 3% 2022 O U TLO O K REVENUE GROWTH DRIVERS Growth Drivers Long-Term Growth Rate 2022E Growth Rate Sustainable Solutions 8–12% 12% Healthcare 8–10% 10% Composites 10% 3% Asia / LATAM 5% 6% Other (GDP growth) 2–3% 2–3% Avient 6.5% 6% 22 Excluding Outdoor High Performance 13% (7.5% excl. APPENDIX Performance Additives 15% Pigments TiO2 Dyestuffs 3%Polyethylene Nylon 6% Polypropylene Other Raw Materials 30% Styrenic Block Copolymer ~40% hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials 35 • Significant raw material price inflation and tight inventory continued in Q4 2021 o For the full year, the average cost of hydrocarbon based materials was up 50% in 2021 o For the full year, the average cost of non- hydrocarbon based materials was up 12% in 2021 • Additionally, we continued to experience other supply chain challenges during Q4 related to raw material spot purchases, freight constraints and productivity loss as a result of these shortages Annual Purchases RAW MATERIAL AND SUPPLY CHAIN UPDATE Based on 2021 purchases, excludes Distribution business SEGMENT DATA U.S. & Canada 50% Latin America 9% 2021 SEGMENT, END MARKET AND GEOGRAPHY 37 GEOGRAPHY REVENUESEGMENT FINANCIALS 23% 19% Building and END MARKET REVENUE (1) Total company sales and adjusted EBITDA of $4,819M and $581M, respectively, include intercompany sales eliminations and corporate costs $2,402M $409M $919M $164M $1,631M $94M Sales EBITDA Distribution Specialty Engineered Materials Color Additives and Inks $581M$4,819M 15% 34% 21% Building & 9% 1% Telecommunications C O L O R , A D D I T I V E S & I N K S 2021 REVENUE | $2 .4 BILL ION 32% 40% 21% Latin America END MARKET REGION 38 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 27% Building & 2021 REVENUE | $919 MILLION END MARKET 55% 20% REGION 39 DI S TR IBU T I ON 26% 23% 20% Building and 80% 3% Latin America END MARKET REGION K E Y S U P P L I ER S 2021 REVENUE | $1 .6 B ILL ION 40 TOTA L C O M PA N Y R E G I O N A L S A L E S BY END MARKET 30% 26%Healthcare 14% Building & 2% Energy (16% of sales) 32% Building & (25% of sales) 41 19% Building & US & Canada (50% of sales) 38% 33% Building & LATAM (9% of sales)
