https://www.avient.com/sites/default/files/2023-03/Avient Annual Report 2022.pdf
These monomers are then polymerized into chains called polymers, or plastic resin, such as polyethylene and polypropylene, in their most basic forms. Avient does not produce commodity base resins. The major types of thermoplastics include polyethylene, polypropylene, polystyrene, polyester and a range of specialized engineering resins.
https://www.avient.com/sites/default/files/2020-09/sustainabilityreport2018.pdf
These formulations combine select engineering resins with reinforcing additives to provide the precise levels of electrical conductivity. However, this solution also makes for a cleaner resin for the recycling stream. Smartheat™ was used to widen the blowing window, allowing the recycled resin to be evenly distributed along the bottle.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520Credit%2520Suisse%2520-%2520June%25202015.pdf
Platform operating income mix percentage 2005* 2006* 2007* 2008* 2009* 2010* 2011 2012 2013 2014 2015 Q1 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 $ 33.8 Global Specialty Engineered Materials 0.4 3.9 4.9 17.6 20.6 49.7 45.9 47.0 57.2 72.4 23.1 Designed Structures and Solutions - - - - - - - - 33.4 45.1 3.2 Specialty Platform $ 4.7 $ 12.8 $ 30.6 $ 45.7 $ 45.8 $ 87.4 $ 96.1 $ 122.3 $ 194.6 $ 242.4 $ 60.1 Performance Products and Solutions 75.7 64.2 65.8 31.3 33.1 54.0 27.7 38.8 56.0 63.1 11.5 Distribution 19.5 19.2 22.1 28.1 24.8 42.0 56.0 66.0 63.3 68.2 15.7 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) (17.2) Operating income (loss) GAAP $ 140.3 $ 233.6 $ 80.0 $ (291.4) $ 137.1 $ 174.6 $ 203.0 $ 137.5 $ 231.5 $ 155.1 $ 70.1 Less: Corporate operating expense 51.5 (34.5) 73.3 425.1 (7.9) 27.7 (18.2) 89.6 82.4 218.6 17.2 Operating income excluding Corporate $ 191.8 $ 199.1 $ 153.3 $ 133.7 $ 129.2 $ 202.3 $ 184.8 $ 227.1 $ 313.9 $ 373.7 $ 87.3 Specialty platform operating mix percentage 2% 6% 20% 34% 35% 43% 52% 54% 62% 65% 69% * Historical results have not been restated for the Resin business divestiture or the related resegmentation. 2 Adjusted EPS 2006Y* 2007Y* 2008Y* 2009Y* 2010Y 2011Y 2012Y 2013Y 2014Y Net income attributable to PolyOne common shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 Joint venture equity earnings, after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) - - - Special items, after tax(1) (21.2) 41.4 310.0 (31.0) 15.8 (30.5) 35.7 30.4 101.0 Tax adjustments(2) (30.0) (30.7) 147.2 (44.9) (88.3) (42.3) 0.5 2.2 (10.5) Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8 96.5 93.5 Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 Adjusted EPS 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 Net income attributable to PolyOne common shareholders $ 20.1 $ 106.0 $ 15.3 $ 11.2 $ 29.4 $ 30.2 Joint venture equity earnings, after tax (0.5) (3.7) - - - - Special items, after tax(1) (0.3) (79.8) 6.1 17.2 14.1 5.5 Tax adjustments(2) (3.5) (1.5) 0.1 0.5 (1.6) 5.9 Adjusted net income $ 15.8 $ 21.0 $ 21.5 $ 28.9 $ 41.9 $ 41.6 Diluted shares 95.3 96.4 90.7 92.8 95.7 90.1 Adjusted EPS $ 0.17 $ 0.22 $ 0.24 $ 0.31 $ 0.44 $ 0.46 * Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principal or discontinued operations
https://www.avient.com/sites/default/files/resources/Gabelli%2520Conf%2520-%2520POL%2520IR%2520Presentation%2520wNon%2520GAAP%2520Reconciliation%252003%252026%252015.pdf
Platform operating income mix percentage 2005Y* 2008Y* 2010Y* 2013Y 2014Y Global Color, Additives and Inks $ 4.3 $ 28.1 $ 37.7 $ 104.0 $ 124.9 Global Specialty Engineered Materials 0.4 17.6 49.7 57.2 72.4 Designed Structures and Solutions - - - 33.4 45.1 Specialty Platform $ 4.7 $ 45.7 $ 87.4 $ 194.6 $ 242.4 Performance Products and Solutions 75.7 31.3 54.0 56.0 63.1 Distribution 19.5 28.1 42.0 63.3 68.2 Joint ventures 91.9 28.6 18.9 - - Corporate and eliminations (51.5) (425.1) (27.7) (82.4) (218.6) Operating income (loss) GAAP $ 140.3 $ (291.4) $ 174.6 $ 231.5 $ 155.1 Less: Corporate operating expense 51.5 425.1 27.7 82.4 218.6 Operating income excluding Corporate $ 191.8 $ 133.7 $ 202.3 $ 313.9 $ 373.7 Specialty platform operating mix percentage 2% 34% 43% 62% 65% * Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
https://www.avient.com/sites/default/files/2020-10/investing-in-avient.pdf
D is t. ) R P M K W R P P G F U L G C P F M C IF F H X L H U N F O E E M N E C L S C L K R A A S H C E G R A A L B As a specialty formulator, we don’t require significant capital investment, as compared to the base resin raw material suppliers we purchase from.
https://www.avient.com/sites/default/files/2021-05/avnt-first-quarter-2021-earnings-presentation.pdf
Develop and implement solutions to end plastic waste while supporting AEPW $1.5B investment in key initiatives. 2 0 3 0 S U STA I NA B I L I T Y TA RG E TS 15 PEER COMPARISONS 16 $442 $457 $560 2019PF 2020PF 2021E $1.74 $1.93 $2.80 2019PF 2020PF 2021E FULL YEAR 2019 – 2021 ORGANIC GROWTH ( T O TA L C O M PA N Y ) 17 Sales Adjusted EBITDA $3,981 $3,783 $4,300 2019PF 2020PF 2021E + 8% Adjusted EPS (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition (1) (1) (in millions) (in millions) (1)(1) + 27% + 61% (1) (1) As a specialty formulator, we don’t require significant capital investment, as compared to the base resin raw material suppliers we purchase from.
https://www.avient.com/sites/default/files/2021-03/avient-march-ir-fermium_0.pdf
15 2 0 2 1 O U T L O O K A S P R O V I D E D O N F E B R U A R Y 9 , 2 0 2 1 W E B C A S T Synergies ($ millions) Initial Three-Year Estimate Revised Three-Year Estimate 2021 Expected Realization Administrative $ 18 $ 20 $ 15 Sourcing 24 30 15 Operational 18 25 5 Total Synergies $ 60 $ 75 $ 35 C L A R I A N T I N T E G R AT I O N & C O S T S Y N ERG I E S U PDATE 17 • Integration going extremely well: synergy target increased from $60 million to $75 million • $5 million of synergies in 2020 and expect to realize $35 million in 2021 • 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 $86 $103 2020PF 2021E $0.53 $0.70 2020PF 2021E ORGANIC GROWTH PROJECTIONS – Q1 ( T O TA L C O M PA N Y ) 18 Sales Adjusted Operating Income $991 $1,090 2020PF 2021E + 10% Adjusted EPS + 20% + 32% (in millions) (in millions) (1) (1) (1) (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition $308 $360 2020PF 2021E $1.93 $2.40 2020PF 2021E ORGANIC GROWTH PROJECTIONS – FULL YEAR ( T O TA L C O M PA N Y ) 19 Sales Adjusted Operating Income $3,783 $4,100 2020PF 2021E + 8% Adjusted EPS + 17% + 24% (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition (1) (1) (in millions) (in millions) (1) 2020 Pro forma $3,783 $308 Sustainable Solutions 60 11% 24 Healthcare 60 11% 18 Composites 20 10% 10 Growth in Emerging Regions 50 7% 11 Other (GDP growth) 82 5% 11 Sub-total $4,055 7% $382 COVID Response Applications (25) - (11) Outdoor High Performance Applications (15) - (7) Asia Payroll Tax Subsidy (COVID) - - (4) FX Impact 85 - 7 Synergies - - 30 Incentives, Travel, Other Employee Costs - - (37) 2021 Estimated $4,100 8% $360 2021 ORGANIC SALES AND OPERATING INCOME ( T O TA L C O M PA N Y ) 20 (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition (2) COVID Response Applications: facemasks, personal protective equipment Sales Growth Rate Adjusted Operating Income$ millions (1) (2) C A S H F LOW A N D L E V E R AGE 21 • Asset light business generates significant free cash flow • Cash generation in 2021 partially offset by restructuring activities to capture synergies associated with the Clariant Masterbatch acquisition • Cash flow deployed to M&A, opportunistic share repurchases and balance sheet / leverage reduction 3.5x 2.7x 2.1x 2019PF 2020PF 2021E Net Debt / Adjusted EBITDA (1) (1) (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition ($ millions) 2020 2021E Adjusted EBITDA 382 510 Working Capital: Source / (Use) 116 (30) Cash Taxes (40) (53) Interest Paid (67) (76) CapEx (62) (75) CapEx for Synergy Capture (2) (20) Restructuring for Synergy Capture (11) (25) Other 22 19 Free Cash Flow 338 250 22 • 8% increase in sales drives 24% increase in adjusted EPS to $2.40 ($2.70 excluding step-up depreciation and amortization) as a result of continued growth in sustainable solutions and synergy capture • Clariant synergy capture ahead of schedule: $35M of savings planned from Clariant Masterbatch acquisition • Adjusted EBITDA of $510M – highest level in company history • Deleveraging ahead of schedule – 2.1x net debt to adjusted EBITDA by the end of 2021 2021 PROJECTIONS PEER COMPARISONS 23 As a specialty formulator, we don’t require significant capital investment, as compared to the base resin raw material suppliers we purchase from.
https://www.avient.com/sites/default/files/2020-11/investing-in-avient_0.pdf
PEER COMPARISONS 16 As a specialty formulator, we don’t require significant capital investment, as compared to the base resin raw material suppliers we purchase from.
https://www.avient.com/sites/default/files/2022-11/AVNT Q3 2022 Earnings Presentation - Website Final.pdf
Purchase price multiple rapidly declining on strength of business and synergy capture 7 $133 $201 2019PF 2022E 7 Clariant Color EBITDA Growth Purchase Price Multiple 10.8x 7.0x 6.4x 2019PF 2021 2022E w/ Full Synergies (1) (1) 11.9% 16.3% 2019PF 2022E EBITDA Margins (1) CLARIANT COLOR: TRANSFORMATIONAL ACQUISITION ($ in millions) (1) Financial information is pro forma to include a full year of Clariant Color business SUNBELT PVC Resins DSS 20 Acquisitions $4.8B Investment $2.7B of Annual Revenue 5 Divestments $2.3B Proceeds TPE PP&S HISTORI C SPECI AL IZATION THROUGH M& A 8 Distribution DSM Protective Materials BOLT-ON AC QUI SITI ON HISTORY 9 Commercial Resources Operating Income ($ in millions) Operating Margins 259 363 At Acquisition 2022E $40 $139 At Acquisition 2022E 9% 22% At Acquisition 2022E Established Acquisitions (> 7 years) + 40% + 248% + 1300 bps I N V E S T T O G R O W S P E C I A LT Y T R A N SF O R M ATI O N T O D A Y 7% 46% 67% 86% 100% 0% 20% 40% 60% 80% 100% 2005 2010 2019 2021 2022 PF % o f A d ju st e d E B IT D A • Commodity JVs • Distribution • Performance Products & Solutions • Specialty Businesses (1) Adjusted EBITDA is EBITDA excluding corporate costs and special items (2) Pro forma for the acquisition of Dyneema® and divestiture of Distribution (1 ) (2) 10 Healthcare 4% Packaging 8% Consumer 10% Building & Construction 43% Industrial 15% Transportation 14% Energy 4% Telecom. 2% 2006 2022 Pro Forma Healthcare 8% Packaging 23% Consumer 21% Building & Construction 10% Industrial 15% Transportation 9% Energy 4% Telecom. 4% Defense 6% END MAR KET F OCUS ON LESS CYCL IC AL I ND USTRI ES 11 14.8% 17.6% 21.0% 2018 2020 2022 PF 1.8% 2006 15.3% 16.2% 17.0% 2018PF 2020PF 2022E CAI 2.7% 2006 SEM SPEC IA LTY EBI TDA MA RGI N EX PANSION 12 • Portfolio transformation accelerates growth in less cyclical, higher margin end markets • Investments in our composites platform continue to drive margin expansion (1) (1) (1) 2018 and 2020 financial information is pro forma to include a full year of Clariant Color acquisition PORTFOLIO EVOLUTION OVER THE YEARS 13 Adj.
https://www.avient.com/sites/default/files/2022-03/AVNT Mar 2022 Presentation.pdf
FX) 2022 GROWTH PROJECTIONS ( T O TA L C O M PA N Y ) 23 $3.05 $3.50 2021 2022E Full Year – Adjusted EPS + 15% (+ 17% excluding FX) $0.89 $0.95 2021 2022E Q1 – Adjusted EPS + 7% (+ 10% excluding FX) ($ millions) Q1 Full Year Q1 Full Year 2021 - Actual 1,162$ 4,819$ 123$ 429$ Sustainable Solutions 27 110 12 44 Healthcare 15 66 4 13 Composites (excl.Outdoor High Performance) 11 29 5 13 Outdoor High Performance Applications (7) (20) (4) (10) Growth in Asia / LATAM 10 51 3 11 Other 57 115 9 12 Sub-total 1,275$ 5,170$ 152$ 512$ Wage Inflation and Overtime (12) (18) Other Supply Chain Costs (4) (7) FX Impact (25) (70) (4) (8) Synergies 4 15 Travel, Other Employee Costs (1) (4) 2022 - Estimated 1,250$ 5,100$ 135$ 490$ Sales Adjusted Operating Income 2022 SALES AND OI – Q1 AND FULL YEAR ( T O TA L C O M PA N Y ) 24 ($ millions) 2021 2022E Cash Flow from Operating Activities 234$ 385$ Less: Run-Rate CapEx (86) (90) CapEx for Clariant Integration (15) (20) CapEx for IT System Upgrade - (25) Total CapEx (101) (135) Free Cash Flow 133$ 250$ Adjusted EBITDA 581$ 635$ Net Debt / Adjusted EBITDA 2.2x 1.8x 25 C A SH F LOW / L E VE R AGE 26 • Record results – highest level of sales ($4.8B) and earnings ($3.05 adjusted EPS) in company history • Successful Clariant Color integration – net debt to adjusted EBITDA reduced to 2.2x, one-year ahead of schedule • Recognized as one of America’s Most Responsible Companies by Newsweek • Earned 3rd consecutive Great Place to Work certification 2021 HIGHLIGHTS 27 • 15% adjusted EPS growth to $3.50, led by growth in sustainable solutions and increased synergy realization • Continued strong synergy capture from the Clariant Color integration: $75M anticipated run-rate synergies by the end of 2022 • Adjusted EBITDA of $635M represents 9% growth above 2021 – 11% excluding the impact of foreign currencies • Deleveraged to 1.8x net debt to adjusted EBITDA by the end of 2022 2022 SUMMARY PEER COMPARISONS 29 As a specialty formulator, we don’t require significant capital investment, as compared to the base resin raw material suppliers we purchase from.