https://www.avient.com/sites/default/files/2023-07/AVNT Q2 2023 Earnings Presentation%5B70%5D.pdf
GUIDANCE ( T O TA L C O M PA N Y ) 8 15.4% 15.9% Guidance Actual Adjusted EBITDA Margin % Better-than-expected margins driven by: • Favorable mix - strong demand for composite applications • Raw material deflation Q2 EBITDA BRIDGE ( T O TA L C O M PA N Y ) 9 ($ millions) CAI: Price / Mix 7) Deflation 11) SEM: Price / Mix 2) Deflation 6) Net Price Benefit 26) Wage and Energy Inflation (10) Cost Reductions 13) FX (2) Q2 2023 Actual $131) Adjusted EBITDA Q2 2022 Pro Forma $ 172) Demand (68) • Demand conditions vs. Q 1 2 0 2 3 -8% +6% -1% Flat 10 US & Canada Latin America EMEA Asia Total Avient -2.6% 2 0 2 3 G U I D A N C E $128 $525 Q3 FY $0.56 $2.40 Q3 FY 2023 GUIDANCE 12 $800 $3,280 Q3 FY Sales Adjusted EBITDA Adjusted EPS (in millions) (in millions) 13 • Focused on working capital management, restructuring actions to streamline operations • IT investment to further integrate acquired businesses and capture operational efficiencies • Preserve Free Cash Flow to maintain net leverage CASH FLOW / LEVERAGE ($ millions) 2023E Cash Flow from Operating Activities 320$ Less: CapEx (140) Free Cash Flow 180$ Adjusted EBITDA 525$ Net Debt / Adjusted EBITDA 3.0x SUSTAINABILITY AS A GROWTH DRIVER 14 LONG-TERM REVENUE GROWTH DRI VERS Revenue From Sustainable Solutions* 2016-2022 $340M $405M $455M $550M $790M $915M 2016 2017 2018 2019 2020PF** 2021 2022PF*** $1,175M *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 60%+ Key Growth Drivers Sustainable Solutions Composites, Healthcare, Asia / LATAM Overlap Other (GDP Growth) Total Company Revenue SUSTAINABILITY REPORT 2022 • Provides progress on 2030 goals • Reaffirms commitment to U.N. Avient 2011 and 2018 valuations reflect trailing 12 months EBITDA at December 31 of the respective years. 24 EV / 2023E EBITDA Historic Multiple 6.5 8.3 10.3 14.4 13.6 13.6 12.4 9.0 20.2 18.2 11.5 10.6 9.7 9.6 8.7 8.3 A vi e n t (2 0 1 1 ) A vi e n t (2 0 1 8 ) A vi e n t (2 0 2 3 ) R P M P P G K W R A V Y F U L E C L H X L F M C A S H S C L C E H U N E M N Avient Specialty Formulators Other Specialty / Chemical Companies SEGMENT DATA U.S. & Canada 40% EMEA 37% Asia 18% Latin America 5% 2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 20% Packaging 24% Industrial 15% Building and Construction 10% Telecommunications 4% Energy 4% Defense 6% END MARKET REVENUE $2,355M $402M $1,300M $272M Sales EBITDA Specialty Engineered Materials Color Additives and Inks $592M$3,653M (1) Transportation 9% Healthcare 8% 26 (1) Total company sales and adjusted EBITDA of $3,653M and $592M, respectively, include intercompany sales eliminations and corporate costs 2 0 2 2 R E V E N U E | $ 2 . 4 B I L L I O N US & Canada 34% EMEA 38% Asia 20% Latin America 8% END MARKET REGION 27 Packaging 34% Consumer 21% Healthcare 8% Industrial 15% Transportation 8% Building & Construction 11% Telecommunications 1% Energy 2% COLOR , AD DI TI VES & INKS 2 0 2 2 P R O F O R M A R E V E N U E | $ 1 . 3 B I L L I O N US & Canada 52% EMEA 35% Asia 13% 28 Packaging 5% Consumer 19% Healthcare 8%Industrial 16% Transportation 10% Telecommunications 10% Energy 9% Defense 15% Building & Construction 8% END MARKET REGION SPEC IA LTY ENGI NEER ED MATERI ALS Packaging 32% Consumer 27% Healthcare 8% Industrial 14% Building & Construction 5% Telecommunications 3% Energy 1% Defense 1% Asia (18% of sales) Transportation 9% 2 0 2 2 P R O F O R M A AV I E N T R E G I O N A L S A L E S Packaging 27% Consumer 14% Healthcare 5% Industrial 17% Building & Construction 10% Energy 5% Defense 8% EMEA (37% of sales)Transportation 11% Packaging 13% Consumer 24% Healthcare 12% Industrial 15% Building & Construction 13% Energy 5% Defense 5% US & Canada (40% of sales) Transportation 7% Packaging 56% Consumer 23% Healthcare 4% Industrial 7% Building & Construction 4% Telecommunications 1% LATAM (5% of sales) Transportation 5% Telecommunications 3% Telecommunications 6% 29 B Y E N D M A R K E T 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/sites/default/files/2023-03/AVNT Q2 2022 Earnings Presentation - Website Version.pdf
Microsoft PowerPoint - AVNT Q2 2022 Earnings Presentation AVIENT CORPORATION S E C O N D Q U A R T E R 2 0 2 2 R E S U L T S (NYSE: AVNT) J U L Y 2 6 , 2 0 2 2 D I S C L A I M E R 2 Forward-Looking Statements Certain statements contained in or incorporated by reference into this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. S E C O N D Q U A R T E R 2 0 2 2 R E S U L T S $122 $134 2021 2022 $0.87 $0.98 2021 2022 Q2 2022 PERFORMANCE ( T O TA L C O M PA N Y ) 4 Sales Adjusted Operating Income $1,235 $1,302 2021 2022 + 5% Adjusted EPS + 10% + 13% (in millions) (in millions) (+ 10% excluding FX) (+ 16% excluding FX) (+ 20% excluding FX) Q2 2022 SEGMENT PERFORMANCE 5 CAI $624 $649 Sales ($ in millions) SEM Distribution $86 $94 Operating Income + 4% + 9% $404 $443 Sales $24 $27 Operating Income + 10% + 13% (1) $241 $244 Sales $37 $37 Operating Income + 1% Flat (+ 10% excluding FX) (+ 16% excluding FX) (+ 6% excluding FX) (+ 3% excluding FX) Q2 2021 $1,235 $122 Sustainable Solutions 17 7% 7 Healthcare 23 14% 5 Composites (ex Outdoor High Performance) 10 20% 4 Growth in Asia / LATAM 5 3% 1 Other 69 11% 5 Sub-total $1,359 10% $144 Outdoor High Performance Impact (9) (5) Wage Inflation and Overtime (7) Other Supply Chain Costs (2) Clariant Color Integration Synergies 7 Incentives, Other Employee Costs 4 FX (48) (7) Q2 2022 $1,302 5% $134 Q2 2022 SALES AND OPERATING INCOME ( T O TA L C O M PA N Y ) 6 Sales Growth Rate Adjusted Operating Income$ millions Adjusted EBITDA Q2 EBITDA BRIDGE 7 Price increases more than offsets raw material and supply chain impacts Q2 2021 $ 159 Demand (29) $ millions CAI: Price / Mix 87 Inflation (58) SEM: Price / Mix 36 Inflation (24) Distribution: Price / Mix 45 Inflation (41) Net Price Benefit 45 Wage Inflation and Overtime (7) Other Supply Chain Costs (2) Clariant Color Integration Synergies 7 Incentives, Other Employee Costs 4 FX (7) Q2 2022 $ 170 China Lockdowns / Russia Impact $ (14) Outdoor High Performance (5) Transportation (5) 8 Q2 '21 Adjusted EPS 0.87$ Color, Additives and Inks 0.11 Specialty Engineered Materials 0.01 Distribution 0.03 Corporate Costs 0.01 F/X (0.05) Segment OI 0.11$ Interest Expense 0.03 Tax Rate (0.03) Q2 '22 Adjusted EPS 0.98$ Q2 EPS BRIDGE Key Updates • Provided progress on 2030 Sustainability Goals • Emphasized commitment to U.N. D I S T R I B U T I O N ) 18 END-MARKET F OCUS F OR NEW I NNOVATION Semiconductors Robotics Healthcare Interconnected disruptive markets with massive innovation needs 19 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 22 • Significant raw material price inflation and tight inventory continued in Q2 2022, although at a slightly lesser rate compared to the prior quarter o For Q2 2022, the average cost of key hydrocarbon based materials was up 15%, roughly the same as the average cost of non- hydrocarbon based materials
https://www.avient.com/sites/default/files/2022-03/AVNT Mar 2022 Presentation.pdf
Purchase price multiple rapidly declining on strength of business and synergy capture 14 $133 $205 2019PF 2021 14 Clariant Color EBITDA Growth Purchase Price Multiple 10.8x 7.0x 6.1x 2019PF 2021 2021 w/ Full Synergies (1) (1) 11.9% 16.2% 2019PF 2021 EBITDA Margins (1) CLARIANT COLOR: TRANSFORMATIONAL ACQUISITION ($ in millions) (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 C L A R I A N T C O LO R I N T E G R AT I O N & C O S T S Y N ERG I E S U PDATE 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 S U S TA I NA B I L I T Y F O R A B ET T E R TO M O R ROW 16 • 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 16 *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 16 2016 2017 2018 2019 2020PF** 2021 $405M $455M $550M $790M Revenue From Sustainable Solutions* 2016-2021 $915M $340M PEOPL E 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% $85 Q4 2021 SALES AND OPERATING INCOME ( T O TA L C O M PA N Y ) 18 Sales Growth Rate Adjusted Operating Income$ millions Adjusted 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 CAI $526 $581 Sales ($ in millions) SEM Distribution $58 $61 Operating Income + 11% + 6% $305 $425 Sales $18 $22 Operating Income + 39% + 22% (1) $191 $228 Sales $30 $29 Operating Income + 19% - 3% 2 0 2 2 O U T L O 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. O U R VA LUATI O N V E R S U S P E E R S Avient Specialty Formulators Other Chemical/Specialty Companies 5.4 8.5 10.1 10.0 15.7 15.0 14.2 12.7 10.2 25.0 19.7 17.7 13.2 12.3 10.0 9.9 8.9 8.5 8.3 6.6 A vi e n t (2 0 1 1 ) A vi e n t (2 0 1 6 ) A vi e n t (2 0 2 1 ) A vi e n t (T o d a y) R P M K W R P P G A V Y F U L A L B E C L H X L A S H F M C B N R E M N U N V R C E S C L H U N Historic Multiple S U M M A RY: W H Y I N V E S T I N AV I E N T ? 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 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% EMEA 25% Asia 16% Latin America 9% 2021 SEGMENT, END MARKET AND GEOGRAPHY 37 GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 23% Packaging 19% Industrial 16% Building and Construction 10% Telecommunications 4% Energy 2% 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 (1) Transportation 11% Healthcare 15% Packaging 34% Consumer 21% Healthcare 8% Industrial 16% Building & Construction 10% Transportation 9% Energy 1% Telecommunications 1% C O L O R , A D D I T I V E S & I N K S 2 0 2 1 R E V E N U E | $ 2 . 4 B I L L I O N US & Canada 32% EMEA 40% Asia 21% Latin America 7% END MARKET REGION 38 All charts reflect 2021 financials S P E C I A L T Y E N G I N E E R E D M A T E R I A L S Consumer 27% Healthcare 10% Packaging 7% Telecommunications 16% Transportation 11% Industrial 11% Building & Construction 11% Energy 7% 2 0 2 1 R E V E N U E | $ 9 1 9 M I L L I O N END MARKET US & Canada 55% EMEA 25% Asia 20% REGION 39 All charts reflect 2021 financials D I S T R I B U T I O N Healthcare 26% Consumer 23% Packaging 5% Industrial 20% Transportation 16% Building and Construction 8% Energy 1% Telecommunications 1% US & Canada 80% Asia 3% Latin America 17% END MARKET REGION K E Y S U P P L I E R S 2 0 2 1 R E V E N U E | $ 1 . 6 B I L L I O N 40 All charts reflect 2021 financials T O T A L C O M PA N Y R E G I O N A L S A L E S B Y E N D M A R K E T Packaging 30% Consumer 26%Healthcare 13% Industrial 14% Building & Construction 5% Telecommunications 2% Energy 2% Asia (16% of sales) Transportation 8% Packaging 32% Consumer 13% Healthcare 5% Industrial 17% Building & Construction 12% Telecommunications 5% Energy 4% EMEA (25% of sales) Transportation 12% 41 Consumer 25% Healthcare 19% Packaging 10% Industrial 17% Building & Construction 10% Telecommunications 4% Energy 2% US & Canada (50% of sales) Transportation 13% Packaging 38% Consumer 33% Healthcare 8% Industrial 10% Building & Construction 5% Telecommunications 1% LATAM (9% of sales) Transportation 5% All charts reflect 2021 financials
https://www.avient.com/sites/default/files/resources/Polyolefins%2520Product%2520Selection%2520Guide.pdf
UL approved • FDA certifiable • Natural, black or colors • High flow grades • UV stabilized • Recycled content • Scratch & mar resistant • UL approved • FDA certifiable • Natural, black or colors • High flow grades • UV stabilized PROPERTY CONDITION UNITS METHOD PRODUCT EXAMPLES 6 Provides the maximum strength and heat resistance among polypropylene compounds. Scratch & mar resistant • Natural, black or colors • High flow grades • UV stabilized Product Code - - - TP9000 A3 TP9110 A701-SM TP9120 B397 TP9120 A525-SM TP9130 A954 Reinforcement Type - - - Talc Talc Talc Talc Talc Reinforcement % - % - 5 11 18 20 30 Specific Gravity 73°F (23°C) - ASTM D792 0.94 0.97 1.01 1.04 1.12 ISO 1183 Tensile Strength Yield psi ASTM D638 2400 3000 2750 3600 3450 MPa ISO 527 18 22 19 25 24 Tensile Elongation Yield % ASTM D638 12 6 5 4 8 ISO 527 Break % ASTM D638 >400 100 170 30 250 ISO 527 Flexural Modulus 73°F (23°C) psi ASTM D790 140,000 260,000 235,000 300,000 325,000 MPa ISO 178 1100 1800 1620 2000 2250 Notched Izod Impact 73°F (23°C) ft-lb/in ASTM D256 No Break 6 10 2 2.2 kJ/m2 ISO 180 68.0 36.0 53.0 11.0 12.0 -30°C ft-lb/in ASTM D256 1.5 1.2 1.3 0.7 0.8 kJ/m2 ISO 180 8.5 6.0 7.0 3.9 4.0 Heat Deflection 66 psi °F ASTM D648 160 208 205 220 218 °C ISO 75 83 98 96 110 105 264 psi °F ASTM D648 100 143 140 160 160 °C ISO 75 50 62 57 70 71 Multiaxial Impact @ 6.6 m/s 0°C ASTM D3763 100% Ductile 100% Ductile 100% Ductile -30°C ASTM D3763 100% Ductile 100% Ductile PROPERTY CONDITION UNITS METHOD PRODUCT EXAMPLES INJECTION MOLDING POLYPROPYLENE 8 91.866.POLYONE www.polyone.com Maxxam™ HST Filled Polypropylene with High Strength and Stiffness Maxxam™ LO Low Odor Talc-Filled Polypropylene Reinforced grades that provide exceptional levels of strength and stiffness. FDA certifiable • Scratch & mar resistant • Impact modified • Natural, black or colors • UV stabilized • Chemically coupled EXTRUSION & BLOW MOLDING POLYPROPYLENE Product Code - - - EP6713 B1 EP6130 B10 EP6430 B1 EP5240 B145 EP7920 B1 Reinforcement Type - - - Talc Mineral Glass CaCO3 Glass/ Mineral Reinforcement % - % - 13 30 30 40 20 Specific Gravity 73°F (23°C) - ASTM D792 0.99 1.12 1.12 1.25 1.05 ISO 1183 Tensile Strength Yield psi ASTM D638 4800 4200 10,000 3600 6500 MPa ISO 527 31 29 69 35 45 Tensile Elongation Yield % ASTM D638 6 8 2 5 6 ISO 527 Break % ASTM D638 100 110 5 70 100 ISO 527 Flexural Modulus 73°F (23°C) psi ASTM D790 325,000 360,000 850,000 350,000 400,000 MPa ISO 178 2250 2400 5800 2400 2750 Notched Izod Impact 73°F (23°C) ft-lb/in ASTM D256 4.0 1.5 4.3 1.1 2.4 kJ/m2 ISO 180 20.0 8.0 24.0 6.0 13.0 Heat Deflection 66 psi °F ASTM D648 230 242 315 240 293 °C ISO 75 110 115 157 116 145 264 psi °F ASTM D648 130 158 270 140 212 °C ISO 75 54 68 132 60 100 PROPERTY CONDITION UNITS METHOD PRODUCT EXAMPLES 111.866.POLYONE www.polyone.com EXTRUSION & BLOW MOLDING POLYPROPYLENE Maxxam™ Filled & Reinforced High Density Polyethylene Specifically designed for blow molding and sheet extrusion/thermoforming of structural parts.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Investor%2520Day%25205-18-15.pdf
Patterson President and Chief Executive Officer PolyOne Corporation Page 6 PolyOne Corporation Page 7 Robert M. Van Hulle President, Global Color, Additives & Inks PolyOne Corporation Page 16 Appliances 2% Building & Construction 12% Consumer 7% Electrical & Electronics 1% Healthcare 6% Industrial 14% Packaging 31% Textiles 7% Transportation 8% Wire & Cable 12% 2014 Revenue by Industry Segment 2014 Revenues: $0.9 Billion At a Glance Global Color, Additives & Inks United States 44% Europe 36% Canada 2% Asia 12% Latin America 6% PolyOne Corporation Page 17 A Case Study for Transformational Success 1.7% 4.6% 5.1% 5.5% 7.2% 8.1% 9.7% 12.2% 14.7% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Operating Margin $9 $26 $28 $25 $43 $50 $75 $104 $125 2006 2007 2008 2009 2010 2011 2012 2013 2014 Operating Income ($M) • Cultural mindset shift from volume to value • Customer centric focus and training • Differentiation with innovation and service • Acquisitions expand portfolio of technology Global Color, Additives & Inks PolyOne Corporation Page 18 395 262 2006 2014 From Volume… (lbs in millions) -34% $94 $293 2006 2014 To Value Gross Margin ($ in millions) +210% Global Color, Additives & Inks PolyOne Corporation Page 19 Accelerating Growth Global Color, Additives & Inks Innovation Market Growth/ Megatrends Geographic Expansion Collaboration PolyOne Corporation Page 20 Who We Are Growing With Global Color, Additives & Inks PolyOne Corporation Page 21 Innovation Pipeline Potential Global Color, Additives & Inks Addressable Market ($ millions) $300 $500 $400 Prototype Frame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 3 3 5 0 1 8 3 1 1 5 1 1 1 1 0 Breakthrough Platform Derivative PolyOne Corporation Page 22 Megatrends Aligned with Key End Markets Increasing Energy Efficiency Protecting the Environment Improving Health and Wellness Megatrend End Markets Globalizing and Localizing Health & Wellness Transportation Packaging Consumer Global Color, Additives & Inks PolyOne Corporation Page 23 $150M Revenue Potential $500M Revenue Potential Additive Technologies InVisiOSM Color & Design Services Key Initiatives Global Color, Additives & Inks PolyOne Corporation Page 24 Innovation Market Growth / Megatrends Geographic Expansion Collaboration Platinum Vision 1.7% 7.2% 14.7% 20%+ 2006 2010 2014 2020 Platinum Vision World Class Operating Margin Accelerating Growth Global Color, Additives & Inks PolyOne Corporation Page 25 Summary • Global Capabilities • Innovation Leader • Collaboration – One PolyOne Global Color, Additives & Inks Color Matters PolyOne Corporation Page 26 Global Specialty Engineered Materials Craig M. Platform operating income mix percentage 2005* 2006* 2007* 2008* 2009* 2010* 2011 2012 2013 2014 Global Color, Additives and Inks $ 4.3 $ 8.9 $ 25.7 $ 28.1 $ 25.2 $ 37.7 $ 50.2 $ 75.3 $104.0 $124.9 Global Specialty Engineered Materials 0.4 3.9 4.9 17.6 20.6 49.7 45.9 47.0 57.2 72.4 Designed Structures and Solutions - - - - - - - - 33.4 45.1 Specialty Platform $ 4.7 $ 12.8 $ 30.6 $ 45.7 $ 45.8 $ 87.4 $ 96.1 $122.3 $194.6 $242.4 Performance Products and Solutions 75.7 64.2 65.8 31.3 33.1 54.0 27.7 38.8 56.0 63.1 Distribution 19.5 19.2 22.1 28.1 24.8 42.0 56.0 66.0 63.3 68.2 Joint ventures 91.9 102.9 34.8 28.6 25.5 18.9 5.0 - - - Corporate and eliminations (51.5) 34.5 (73.3) (425.1) 7.9 (27.7) 18.2 (89.6) (82.4) (218.6) Operating income (loss) GAAP $140.3 $ 233.6 $ 80.0 $(291.4) $137.1 $174.6 $203.0 $137.5 $231.5 $155.1 Less: Corporate operating expense 51.5 (34.5) 73.3 425.1 (7.9) 27.7 (18.2) 89.6 82.4 218.6 Operating income excluding Corporate $191.8 $199.1 $153.3 $133.7 $129.2 $202.3 $184.8 $227.1 $313.9 $373.7 Specialty platform operating mix percentage 2% 6% 20% 34% 35% 43% 52% 54% 62% 65% * Historical results have not been restated for the Resin business divestiture or the related resegmentation.
https://www.avient.com/sites/default/files/resources/Ahrensburg_ISO50001.pdf
Müller, CEO SQS 6 67 0 _ 2 / J u n e 2 0 19 / V er si o n 2 .0 A.
https://www.avient.com/sites/default/files/2024-05/Cesa Fiber Additives Hydrophobic for PP Nonvoven Medical - Case Study_0520.pdf
Medical textile manufacturer MEDICAL TEXTILE MANUFACTURER A A M I S T A N D A R D G O W N S • Water repellent properties for nonwoven fabric • Fast and long-lasting water repellency • Usable in nonwoven SMS spunbond layer • Enhanced liquid repellency in spunbond layer • Eliminated the need for secondary water repellent coatings • Provided long lasting hydrophobic performance • Achieved IPA repellency grade 6 Cesa Fiber Additives Hydrophobic Solutions KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/resources/IR_Deck_11.4.19.pdf
V I S I O N PolyOne Corporation 4 To be the world’s premier provider of specialized polymer materials, services and solutions C O R E V A L U E S P E R S O N A L V A L U E S Honesty IntegrityRespect Operational Excellence Commercial Excellence Specialization Globalization Collaboration ExcellenceInnovation To be the world’s premier provider of specialized polymer materials, services and solutions S A F E T Y F I R S T PolyOne Corporation 5 Injuries per 100 Workers Spartech Acquisition 1.3 1.1 1.1 0.85 0.65 0.57 0.54 0.97 0.84 0.74 0.74 0.69 0.51 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 PolyOne Corporation 6 P O L Y O N E P R O F O R M A 2 0 1 8 R E V E N U E | $ 2 . 9 B I L L I O N * Segment End Market Geography Transportation 15% Healthcare 15% Industrial 14% Packaging 13% Consumer 12% Wire & Cable 11% Building & Construction 6% Electrical & Electronics 6% Textiles 5% Appliance 3% Color Additives & Inks 34% Distribution 41% Specialty Engineered Materials 25% United States 54% Europe 20% Asia 11% Latin America 10% Canada 5% *Pro Forma excluding PP&S and including Fiber-Line PolyOne Corporation 204 P R O O F O F P E R F O R M A N C E C O N S E C U T I V E Y E A R S 1 0 A D J U S T E D E P S E X P A N S I O N $1.51 $1.61 S U S T A I N A B L E P A T H T O D O U B L E - D I G I T E P S G R O W T H PolyOne Corporation 8 P E O P L E P R O D U C T S P L A N E T P E R F O R M A N C E Double digit annual EPS growth Expand specialty portfolio with strategic acquisitions Innovate and develop new technologies and services Repurchase 600K-1M shares annually Increase commercial resources 5-7% annually Double acquired company margins Enhance efficiencies through Lean Six Sigma and commercial excellence 531 710130 164 504 663 2014 2018 R&D / Technical Marketing Sales PolyOne Corporation 9 Increased commercial headcount + 34% + 26% + 32% I N V E S T M E N T I N C O M M E R C I A L R E S O U R C E S D R I V I N G G R O W T H Sustained revenue increases led by organic business $2.9 $2.9 $3.2 $3.5 2015 2016 2017 2018 Total + 9% Organic + 5% Revenue in billions of $ Total + 10% Organic + 7% Lead Specialists T H E E V O L V I N G C U S T O M E R R E L A T I O N S H I P PolyOne Corporation 10 Expanded Path Traditional Path Strategic Accounts/ Field Sales Business Development Customer Service Web and Social Media Inside Sales PolyOne Corporation 11 Investments in digital and dedicated inside sales to improve customer experience 110% increase in leads (from 6,000 to 12,700) driven by website, phone, and online chat E X P A N D E D P A T H A D D I N G C U S T O M E R T O U C H P O I N T S 4 24 2014 2018 Inside sellers $11M $109M 2014 2018 Inside sales/digital revenue A L I G N I N G W I T H T R E N D S F O R G R O W T H T R A N S P O R T A T I O N P A C K A G I N G H E A L T H C A R E C O N S U M E R PolyOne Corporation 12 Facilitate alternative energy solutions Light- weighting Reduce packaging materials Improve recyclability Reduce spread of infection I N N O V A T I O N PolyOne Corporation 13 Customization 55% M&A 30% Innovation Pipeline 15% Innovation comes from Research & Development Spend ($ millions) Vitality Index % of sales from products launched last 5 years 12% 35% 2006 2018 $20 $56 2006 2018 Transformational Opportunity for Growth Through M&A Adjacent Opportunity for Growth Through New Product Pipeline Core Customization 3 H O R I Z O N S O F D E V E L O P M E N T PolyOne Corporation 14 Incremental development from existing base of technology New development adjacent to current technology New technology development outside of and with our current base Service adjacent markets and customers Create new markets, target new customer needs Service existing markets and customers Market Technical I N N O V A T I O N Non-Halogen Flame Retardants Barrier Technologies Fiber Colorants Advanced Composites Thermoplastic Elastomers Gordon Composites/ Polystrand – Composites GLS – Thermoplastic Elastomers ColorMatrix – Liquid Color & Additives PlastiComp Fiber-Line I N N O V A T I O N S P O T L I G H T : C O M P O S I T E S PolyOne Corporation 15 C O M P O S I T E S R E F R E S H E R PolyOne Corporation 16 Fiber Polymer Composite Strength Design Flexibility Continuous Fiber Thermoset Composites Short Glass Fiber Thermoplastics Continuous Fiber Thermoplastic Composites Long Glass Fiber Thermoplastics S T R A T E G I C I N V E S T M E N T H I S T O R Y Acquired Polystrand Installed LFT production Avon Lake Acquired Gordon Composites Thermoplastic Composites Long Fiber Reinforced Thermoplastics Continuous Fiber Thermosets Long Fiber Thermoplastic (LFT) Technology Installed LFT production Barbastro, Spain Acquired Glasforms Long Fiber Reinforced Thermoplastics Continuous Fiber Thermosets 2012 2015 20162009 2011 Acquired PlastiComp, specialty LFT producer 2018 PolyOne Corporation 2019 Acquired Fiber-Line, specialty fiber processor 17 C O M P O S I T E S I N T R A N S P O R T A T I O N PolyOne Corporation 18 W A T E R C R A F TR A I L H E A V Y T R U C K Bulkheads and Transoms Ceilings and Hatches Doors and Cabinetry Flooring Door Panels Side Walls Flooring & Side Panels Aerodynamic Fairings Seat and Bunk Reinforcements P O L Y O N E A P P L I C A T I O N S I N F I B E R O P T I C C A B L E S PolyOne Corporation 19 1. Outer strength member • Base fiber of Kevlar, E-Glass, Zylon, Vectran LCP • Often be coated with Fiber-Line coatings (Swellcoat, Bondcoat, Wearcoat) 6. Binder • PET, Polyester, Kevlar yarns coated with Swellcoat (absorbs and blocks water) 2 3 4 5 7 6 8 9.
https://www.avient.com/sites/default/files/2020-08/fiber-solutions-business-unit-overview-2020.pdf
Carriers: PET, PBT, PA 6, PA 66, others Applications • Continuous filament spinning, including fine denier (POY, FDY, HOY, bi-component yarns) • Long and short spinning staple fiber • Spunbond WHITE • TiO2 white with excellent opacifying or tinting strength • Optical white MBs that improve the surface whiteness and/or brightness of end products Product characteristics • Optimal melt flow properties allow a good mixture with the polymer matrix yielding the best possible spinnability • Full pigment dispersion ensures maximum CPF/ Spinning pack life Carrier: PET, PBT, PA 6 Applications • Continuous filament, including fine deniers (POY, FDY, HOY) • Long and short spinning staple fiber • Spunbond SINGLE PIGMENT DISPERSIONS (SPDS) We have extensive experience in using advanced technologies and special raw materials, which make these products suitable for sensitive applications. Product characteristics • Good spinnability • Full dispersion • Excellent tinting strength • Maximum fastness properties • Lot-to-lot consistency • Carriers: PET, PBT, PA 6, PP Applications • Continuous filaments (POY, FDY, HOY, BCF) • Long and short spinning staple fiber Special Products Our portfolio includes color formulations for high-tenacity yarn applications.
https://www.avient.com/sites/default/files/2024-08/Avient AUG 2024 Investor Presentation- w Non-GAAP.pdf
& Canada EMEA Asia Latin America 64% 36% Specialty Engineered Materials Color Additives and Inks 41% 36% 18% 5% 7% 7% 23% 19% 9% 16% 10% 5% 4% Defense Healthcare Packaging Consumer Building & Construction Industrial Transportation Energy Telecom Geography Segment Industry 2024 Financial Guidance $515 to $540 million Adjusted EBITDA $2.55 to $2.70 Adjusted EPS 4 Industry Sustainability Standards ESG Ratings Performance 1 2 4 87th 94th percentile Avient CDP Score: A- SUSTAINABILITY PERFORMANCE AND RECOGNITION A U G U S T 6 , 2 0 2 4 W E B C A S T P R E S E N TA T I O N 6 Q2 2024 HIGHLIGHTS • 5% organic sales growth supported by broad-based growth across all regions in both CAI and SEM segments • Growth stemmed from gaining share, winning new product specifications and restocking in certain end markets • Cost control and operational discipline expanded EBITDA margins by 100 bps • EPS exceeded guidance by $0.05 and increased 21% vs the prior year Adj. FX +4.6% FX -1.5% Total Avient +3.1% Note: Regional Sales Percentages exclude impact of foreign exchange Q2 2024 SEGMENT PERFORMANCE ( C O L O R , A D D I T I V E S & I N K S ) $525 $542 Q2 23 Q2 24 $94 $108 Q2 23 Q2 24 19.9% Sales Adjusted EBITDA (in millions) (in millions) Sales Adjusted EBITDA 10 17.9% +200 bps * * * Adjusted EBITDA Margin % • Organic sales growth in all regions led by Americas • Raw material deflation combined with cost reduction actions drove EBITDA margin expansion + 3% (+5% excluding FX) + 15% (+17% excluding FX) Q2 2024 SEGMENT PERFORMANCE ( 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 ) $301 $308 Q2 23 Q2 24 $60 $64 Q2 23 Q2 24 20.6% Sales Adjusted EBITDA (in millions) (in millions) Sales Adjusted EBITDA 11 19.8% +80 bps * * * Adjusted EBITDA Margin % • Sales growth in consumer, healthcare and building & construction end markets offset by weaker demand in telecommunications • EBITDA margin expansion driven by positive end market mix as well as raw material deflation + 2% (+4% excluding FX) + 7% (+8% excluding FX) 2 0 2 4 G U I D A N C E FY 20 24 GUIDA NC E Previous (May 7) Current Adjusted EBITDA $510 to $535 million $515 to $540 million Adjusted EPS $2.50 to $2.65 $2.55 to $2.70 Interest Expense $105 million $105 million Adjusted Effective Tax Rate 23% to 25% 23% to 25% Capital Expenditures ~$140 million ~$140 million 13 Q3 2024: Adjusted EPS of $0.62 14 Highlights • Provides performance updates on 2030 Sustainability Goals • Reduced company’s Scope 1 & 2 GHG emissions by 48% since 2019 • Highlights ESG performance ratings, certifications, and awards, including recent upgrades by Ecovadis to Gold and CDP to A- • Reflects Great Place to Work® culture focused on health, safety and employee engagement 20 23 SUSTAI NA BILI TY REPORT 14 Sustainability for a Better Tomorrow 2023 SUSTAINABILITY REPORT 15 • Investor Day to be held 2024年12月4日 in New York, NY • The focus will be to do a deep dive on the Company’s strategy • Further details to be communicated 20 24 AVI ENT INVESTOR DAY A P P E N D I X 18 Performance Additives 15% Pigments 13% TiO2 9% Dyestuffs 2% Polyethylene 10%Nylon 5% Polypropylene 4% Styrenic Block Copolymer 4% Other Raw Materials 38% ~40% hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Other Raw Materials”) Non-hydrocarbon based materials RA W MATERI AL BA SKET SEGMENT DATA U.S. & Canada 41% EMEA 36% Asia 18% Latin America 5% 2023 SEGMENT, END MARKET AND GEOGRAPHY GEOGRAPHY REVENUESEGMENT FINANCIALS Consumer 19% Packaging 23%Industrial 16% Building and Construction 9% Telecommunications 4% Energy 5% Defense 7% END MARKET REVENUE $2,007M $358M $1,138M $224M Sales EBITDA Specialty Engineered Materials Color Additives and Inks $502M$3,143M (1) Transportation 10% Healthcare 7% 20 (1) Total company sales and adjusted EBITDA of $3,143M and $502M, respectively, include intercompany sales eliminations and corporate costs 2 0 2 3 R E V E N U E | $ 2 . 0 B I L L I O N US & Canada 34% EMEA 37% Asia 21% Latin America 8% END MARKET REGION 21 Packaging 34% Consumer 21% Healthcare 8% Industrial 15% Transportation 9% Building & Construction 10% Telecommunications 1% Energy 2% COLOR , AD DI TI VES & INKS 2 0 2 3 R E V E N U E | $ 1 . 1 B I L L I O N US & Canada 52% EMEA 35% Asia 13% 22 Packaging 5% Consumer 16% Healthcare 6%Industrial 16% Transportation 12% Telecommunications 9% Energy 10% Defense 18% Building & Construction 8% END MARKET REGION SPEC IA LTY ENGI NEER ED MATERI ALS Packaging 32% Consumer 26% Healthcare 9% Industrial 13% Building & Construction 6% Telecommunications 2% Energy 2% Defense 1% Asia (18% of sales) Transportation 9% 2 0 2 3 AV I E N T R E G I O N A L S A L E S Packaging 25% Consumer 13% Healthcare 5% Industrial 18% Building & Construction 9% Energy 5% Defense 8% EMEA (36% of sales)Transportation 13% Packaging 13% Consumer 22% Healthcare 10% Industrial 16% Building & Construction 12% Energy 6% Defense 8% US & Canada (41% of sales) Transportation 9% Packaging 59% Consumer 22% Healthcare 2% Industrial 8% Building & Construction 4% LATAM (5% of sales) Transportation 5% Telecommunications 4% Telecommunications 4% 23 B Y E N D M A R K E T 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.