https://www.avient.com/sites/default/files/2020-03/PolyOne_Website-12.19.pdf
T O D A Y ’ S P R E S E N T E R S Robert M. Richardson Executive Vice President and Chief Financial Officer PolyOne Corporation 4 PolyOne Corporation 5 Landmark portfolio transformation: > 85% of Adjusted EBITDA from specialty solutions World-class innovation, technology and service are differentiators Sustainability initiatives and alignment with megatrends drive above market growth in key end markets and applications: Capital management is a strength - proven track record of expanding ROIC while increasing invested capital Transaction expected to add $0.85 to pro forma adjusted EPS T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y Integrity V I S I O N PolyOne Corporation 6 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 Respect Operational Commercial Specialization Globalization Collaboration ExcellenceInnovation To be the world’s premier provider of sustainable, specialty polymer materials and solutions. S A F E T Y F I R S T PolyOne Corporation 7 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 G R E A T P L A C E T O W O R K PolyOne Corporation 8 * Pro Forma for sale of DSS Operating Income % of Sales 2006 Q3 YTD 2019 Color, Additives & Inks 1.7% 15.5% Specialty Engineered Materials 1.1% 11.8% Distribution 2.6% 6.3% 2009 2010 2011 2012 2013 2014 2015 2016*2017* 2018 $2.43 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 PolyOne Corporation 9 10 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.06 $2.21 A D J U S T E D E P S E X P A N S I O N 2018 2019E $1.65 $1.51 Pro Forma for sale of PP&S T R A N S F O R M A T I O N H E A D L I N E S PolyOne Corporation 10 C O M M O D I T Y T O S P E C I A L T Y T R A N S F O R M A T I O N PolyOne Corporation 11 • Volume driven, commodity production • Heavily tied to cyclical end markets • Performance largely dependent on non- controlling joint ventures • Shift to value-based selling & an innovative culture • New leadership team appointed • Implementation of four pillar strategy • Investment in commercial training and innovation • Faster growing, high margin focus • Accelerated growth with world class vitality index • Significant commercial resource additions • Expanded margins with specialty focus • Acquired strategic, bolt-on companies to expand technology offerings and improve geographic breadth Volume Value Transformation The Future 2006 - 2013 2013 – 20192000-2005 2006 - 2013 • Landmark portfolio transformation creates specialty growth company • Sustainability / mega- trends drive above market growth 2020 and Beyond F I T W I T H F O U R P I L L A R S T R A T E G Y PolyOne Corporation 12 Specialization • Innovation-led organization with heavy emphasis on R&D • World-class expertise in color formulation • Strong presence in specialty end markets including Consumer, Packaging and Healthcare Globalization • Diverse geographic portfolio with an established presence in every major region • Expands PolyOne’s ability to serve customers in key growth areas including India, China and Southeast Asia Operational • Extensive manufacturing footprint with 46 facilities • Organizational focus on optimizing supply chain to better serve customers • Color design expertise Commercial • Value-focused salesforce with vast experience marketing and commercializing specialty technologies • Diverse customer portfolio with established OEM’s People Experienced and talented associates with a winning mentality L E V E R A G I N G G L O B A L M E G A T R E N D S 13 Facilitate alternative energy solutions Light- weighting Reduce packaging materials Improve recyclability Reduce spread of infection 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 EC O N S U M E R PolyOne Corporation E N D M A R K E T T R A N S F O R M A T I O N PolyOne Corporation 14 Building & Construction 18% 8% 50% 22% High Growth End Markets Percentage of Total Revenue 38% E N D M A R K E T T R A N S F O R M A T I O N PolyOne Corporation 15 8% Building & Construction 38% Wire & Cable 11% Industrial Electrical & Electronic 7% Transportation 18% Building & Construction Wire & Cable Industrial Electrical & Electronic Appliance 3% Textiles Transportation 13% C O M P L E M E N T A R Y G E O G R A P H I C P R E S E N C E PolyOne Corporation 16 38% Europe 33% Asia 19% 22% Europe Asia & Middle East 31% 1% Color & Engineered Materials Clariant Color & Additive Masterbatch Business Net Sales by Geographic Region 31% Europe 36% Asia & Middle East 24% 3% Pro Forma Color & Engineered Materials 531 710 1,042 130 164 208 504 663 880 2014 2018 2019E PF* R&D / Technical Marketing Sales PolyOne Corporation 17 + 34% + 26% + 32% E X P A N S I O N O F COMMERCIAL RESOURCES D R I V I N G G R O W T H $2.9 $2.9 $3.5 2015 2016 2017 2018 2019E PF Total + 9% Organic + 5% Revenue in Billions Total + 10% Organic + 7%+ 47% + 27% + 33% $4.0 $3.2 2019E PF* P R I O R A C Q U I S I T I O N S : P R O O F O F P E R F O R M A N C E PolyOne Corporation 18 Commercial Resources Operating Income ($ in millions) Operating Margins 243 340 $36 $96 11% Established Acquisitions (> 7 years) + 40% + 165% + 900 bps U N I F I E D F O C U S O N S U S T A I N A B I L I T Y PolyOne Corporation 19 2006 - 2013 2013 – 2019 PEOPLE PRODUCTS PLANET PERFORMANCE Clariant Color & Additive Masterbatch Business • Building mini-recycling plants to facilitate customer projects on design for recycling - CycleWorks • Uses packaging additives & colorants to improve recyclability and enhance automated sorting • Manufactures oxygen scavengers to extend shelf-life of perishable items and reduce material requirements • Combines UV-blocking additive colorants & other barriers to prevent spoilage and waste • Offers spin-dyeing solutions that use significantly less water than traditional methods, allowing for sustainable coloration of textiles • Produces infrared absorbing additives that reduce energy requirements for bottle manufacturing ($ in millions) (Continuing Operations) Clariant Color & Additive Masterbatch Business Synergies New 2019E Total Sales $2,860 $1,150 $4,010 2019E Adjusted EBITDA $310 $130 $60 $500 % Margin 10.8% 11.3% 12.5% 2019E CapEx $60 $85 % Sales 2.1% 2.1% 2019E Free Cash Flow $170 $250 2019E Adjusted EPS $1.65 $2.22 2019E PF Adjusted EPS $1.65 $2.50 P O L Y O N E + C L A R I A N T C O L O R & A D D I T I V E M A S T E R B A T C H B U S I N E S S PolyOne Corporation 20 (1) Excludes step-up of depreciation & amortization related to purchase accounting of transaction (1) $0.85/share O V E R 8 5 % O F A D J U S T E D E B I T D A F R O M S P E C I A L T Y PolyOne Corporation 21 46% 66% 0% 60% 80% 100% 2005 2010 2015 2019E PF % o f A d ju s te d E B IT D A * JV's Performance Products & Solutions Distribution Specialty 7% 87% * Adjusted EBITDA is EBITDA excluding corporate costs and special items ** 2019E Pro Forma for PP&S Divestiture and Clariant Color & Additive Masterbatch business acquisition with synergies Specialty EBITDA $14M $117M $273M $500M ** PolyOne Corporation 22 T R A N S A C T I O N O V E R V I E W • Expected mid-2020, subject to regulatory approvals and customary closing conditions Closing Conditions / Timing • Committed financing in place • Permanent financing to be combination of available cash on-hand, new debt and equity component to limit leverage • Equity issuance of $400 to $500MM • Target net leverage below 3.5x, 3.1x synergized, with intention to de-lever below 3.0x within 2 years PolyOne Corporation 23 • $1.45 B net purchase price • Represents 11.1x adjusted EBITDA (excluding synergies), 7.6x adjusted EBITDA (including synergies) • Pre-tax synergies of $60MM expected to be fully realized by the end of 2023 • Synergies realized from sourcing, operational, technology / commercial, and general administrative Transaction Value Synergies Estimated Synergy Breakdown $60MM • Expect EBITDA synergies of $60MM – Proven integration expertise with a decade of acquisition experience – Administrative synergies reflect reduction of duplicative internal and third-party costs • Run rate synergies of $20MM by the end of Year 1 with $60MM achieved by the end of Year 3 • Significant additional opportunity for geographical expansion – Clariant Color & Additive Masterbatch business has complementary regional presence in key growth areas including India & Southeast Asia • Opportunity to accelerate growth with a combined portfolio of innovative solutions aligned with sustainability megatrends Sourcing Operational 30% Administrative 30% PolyOne Corporation 24 S I G N I F I C A N T S Y N E R G Y O P P O R T U N I T I E S C A P I T A L S T R U C T U R E / L E V E R A G E PolyOne Corporation 25 At Close Year 1 Year 2 3.2x 3.5x 3.1x 2.6x Pro Forma with Synergies 2019E PF Two year leverage goal (1) Pro Forma Capitalization is for illustrative purposes only; amounts may vary depending on various market and other factors.
https://www.avient.com/sites/default/files/2020-08/avient-investor-presentation-jefferies-industrials-conference.pdf
Avient Corporation 1 JEFFERIES VIRTUAL INDUSTRIALS CONFERENCE A U G U S T 2 0 2 0 Avient Corporation 2 FORWARD LOOKING STATEMENTS Avient Corporation 3 USE OF NON-GAAP MEASURES Avient Corporation 4 UPDATE ON THE COVID-19 PANDEMIC Avient Corporation 5 2019 Transportation Consumer Discretionary Healthcare Packaging All Other Industries Cost Containment FX 2020 $64.3 18% 16% 2% $46.9 SECOND QUARTER 2020 IN REVIEW Consumer Discretionary Avient Corporation 6 CLARIANT MASTERBATCH STRATEGIC RATIONALE Avient Corporation 7 FIT W I T H FOUR PILLAR S T R A T E G Y Specialization Globalization Operational Commercial People Avient Corporation 8 2006 2019E PF* 2006 2019E PF* 38% * 2019E Pro Forma for PP&S Divestiture and Clariant Masterbatch business Percentage of Total Revenue E N D M A R K E T T R A N S F O R M A T I O N Building & Construction High Growth End Markets 50% 22% Avient Corporation 9 Electronic 38% 18%Transportation Building & Constrution Electrial & Electronic 2006 Pro Forma(1) Net Sales by End Market E N D M A R K E T T R A N S F O R M A T I O N Avient Corporation 10 U N I F I E D F O C U S O N S U S T A I N A B I L I T Y 2006 - 2013 2013 – 2019 PEOPLE PROD UC TS PLANET PER FOR M A NC E Avient Corporation 11 O V E R 8 5 % O F A D J U S T E D E B I T D A F R O M S P E C I A L T Y 46% 66% 0% 40% 60% 80% 100% 2005 2010 2015 Pro Forma % o f A d ju s te d E B IT D A ( 1) JVs Performance Products & Solutions Distribution Specialty 87% (2) Avient Corporation 12 T H E N E W A V I E N T : A S P E C I A L T Y G R O W T H C O M P A N Y Transaction expected to add $0.85 to pro forma adjusted EPS Avient Corporation 13 SUSTAINABILITY AT AVIENT 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 Avient Corporation 13 Avient Corporation 14 V I S I O N To be the world’s premier provider of specialized polymer materials, services and 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 Commercial Specialization Globalization Collaboration ExcellenceInnovation To be the world’s premier provider of specialized polymer materials, services and sustainable Avient Corporation 15 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 0.56 0.14 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD S A F E T Y F I R S T Injuries per 100 Workers Spartech Acquisition Avient Corporation 16 G R E A T P L A C E T O W O R K Avient Corporation 17 C O M M O D I T Y T O S P E C I A L T Y T R A N S F O R M A T I O N 2006 - 2013 2013 – 20192000-2005 2006 - 2013 2020 and Beyond Avient Corporation 18 A V I E N T 2 0 1 9 R E V E N U E | $ 2 . 9 B I L L I O N Segment End Market Geography Wire & Cable Building & Electrical & Electronics Color Additives & Inks 34% Distribution 41% Specialty Engineered Materials 25% United States 54% Latin America Avient Corporation 19 Operating Income % of Sales Color, Additives & Inks 1.7% 14.7% Specialty Engineered Materials 1.1% 11.6% Distribution 2.6% 6.3% 2009 2010 2011 2012 2013 2014 2015 2016*2017* 2018 $2.43 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 10 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.06 $2.21 A D J U S T E D E P S E X P A N S I O N 2018 2019 $1.69 $1.51 Avient Corporation 20 531 710 1,032 130 164 207 504 663 871 2014 2018 Pro Forma R&D / Technical Marketing Sales + 34% + 26% + 32% E X P A N S I O N O F COMMERCIAL RESOURCES D R I V I N G G R O W T H Revenue in Billions Total + 10% Organic + 7%+ 45% + 26% + 31% $4.0 $3.2 (2) (1) (1) $2.9 $2.9 $3.5 2015 2016 2017 2018 Pro Forma Total + 9% Organic + 5% Pro Forma(2) Avient Corporation 21 P R I O R A C Q U I S I T I O N S H I S T O R Y Commercial Resources(1) Operating Income ($ in millions) Operating Margins 256 350 $36 $100 Established Acquisitions (> 7 years) + 37% + 176% + 1000 bps Avient Corporation 22 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 Facilitate alternative energy Light- weighting Reduce packaging materials Improve recyclability Reduce spread of infection Avient Corporation 23 I N N O V A T I O N Customization 55% M&A 30% Innovation Pipeline Innovation comes from Research & Development Spend Vitality Index 37% $20 $51 Avient Corporation 24 R E V E N U E F R O M S U S T A I N A B L E S O L U T I O N S $275M $325M $355M $410M 14% Total Annual Growth 9% Organic Annual Growth Avient Corporation 25 SEGMENT HIGHLIGHTS I N N O V A T I N G W I T H A V I E N T Avient Corporation 25 Avient Corporation 26 C O L O R , A D D I T I V E S & I N K S E N D M A R K E T S & S O L U T I O N S Solid Colorants Performance Additives Screen Printing Inks Liquid Colorants 31% Building & Construction Appliances Electrical & Electronics Avient Corporation 26 Avient Corporation 27 Operating Income & MarginRevenue by Region C O L O R , A D D I T I V E S & I N K S 2 0 1 9 R E V E N U E | O V E R $ 1 B I L L I O N 34% United States 44% Mexico South America $4 $25 $104 $147 0.9% 5.5% 12.2% 14.7% Avient Corporation 27 Avient Corporation 28 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 E N D M A R K E T S & S O L U T I O N S Engineered Formulations Advanced Composites Thermoplastic Elastomers Wire & Cable* 28% Electrical & Electronics Building & Construction Avient Corporation 28 Avient Corporation 29 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 Revenue by Region Operating Income & Margin 2 0 1 9 R E V E N U E | $ 7 5 0 M I L L I O N 27% United States 54% 17% $21 $57 $87 0.1% 5.1% 9.3% 11.6% Avient Corporation 29 Avient Corporation 30 D I S T R I B U T I O N E N D M A R K E T S & S U P P L I E R S 28% 17% Electrical & Electronics Building & Operating Income & Margin2019 Revenue | $1.2 Billion $25 $63 $75 $20 2.9% 4.0% 5.9% 6.3% Avient Corporation 30 http://www.avient.com/Pages/VariationRoot.aspx Avient Corporation 31 O V E R V I E W O F R A W M A T E R I A L P U R C H A S E S Avient Corporation 31 Avient Corporation 32 Avient Corporation 33 Adjusted EPS attributable to PolyOne common shareholders is calculated as follows: 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016** 2017** 2018 2018*** Q1 2019*** 2019 Q1 2020 Net income from continuing operations attributable to PolyOne common shareholders Joint venture equity earnings, after tax Special items, before tax Special items, tax adjustments Adjusted net income from continuing operations attributable to PolyOne common shareholders $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6 $ 166.4 $ 173.5 $ 161.1 $ 87.7 $ 22.4 $ 75.5 $ 33.1 (19.0) (14.7) (3.7) — — — — — — — — — — — (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 23.8 32.9 59.5 58.7 12.2 61.7 9.6 (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (15.9) (24.8) (25.3) (25.1) (1.2) (5.9) (1.0) $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 174.3 $ 181.6 $ 195.3 $ 121.3 $ 33.4 $ 131.3 $ 41.7 Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1 80.4 80.4 78.2 77.7 86.7 Adjusted EPS attributable to PolyOne common shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.06 $ 2.21 $ 2.43 $ 1.51 $ 0.43 $ 1.69 $ 0.48 * Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principle, discontinued operations or the related resegmentation. ** Pro forma for sale of Designed Structures and Solutions segment (DSS). *** Pro forma for sale of Performance Products and Solutions segment (PP&S).
https://www.avient.com/sites/default/files/2020-12/case-study-one-pager-maxxam-fr-fridge-base.pdf
GLOBAL FRIDGE MANUFACTURER R E F R I G E R A T O R B A S E • Provide 5VA flame retardant rating • Utilize existing molds • Keep the same mechanical and physical properties as current material • Dimensional stability – limit shrinkage of final part • High strength – bearing the weight of the whole fridge • Maintain or reduce weight • Expedited development time, providing solutions ready for testing within a week • Enabled first time approval through close customer collaboration • Provided excellent in person support to both customer and moulder throughout trials • Gave technical advice on how to adjust processing parameters, enabling the use of existing molds with the new material Maxxam™ FR Flame Retardant Formulations KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2023-01/Nymax Motorcycle Trunk Application Snapshot.pdf
TRANSPORTATION OEM A F T E R M A R K E T M O T O R C Y C L E T R U N K L I D & B A S E • Maintain physical performance of incumbent 30% glass fiber nylon while improving sink and warp issues • Black with an easy-to-paint surface • UV resistant • Collaborated to rapidly provide an alternative material with excellent balance of physical properties and durability • Achieved comparable performance while improving paintability • Quickly provided samples and offered on-site application development and technical support at molding trials Nymax™ Glass and Mineral Fiber Reinforced Nylon 6 Formulation KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2022-05/Pipe Mfg Liquid Color App Snapshot final NEW.pdf
Pipe Mfg Liquid Color App Snapshot final (1) PIPE MANUFACTURER P R E S S U R E / N O N - P R E S S U R E P I P E S • Provide a safe and compliant manufacturing environment for all team members • Improve weatherability and outdoor exposure longevity in field and yard environments • Increase color consistency and enhance pipe appearance • Reduce scrap rates and eliminate order rejections • Meet required compliance and regulatory approvals • Incur no capital expense for dosing & handling equipment • Provided a customer-centric approach focused on gaining operational efficiencies to support an improved manufacturing environment • Offered formulation expertise and problem-solving experience to upgrade pipe performance • Attained finely dispersed TiO2 and color distribution throughout the pipe, meeting quality requirements while reducing scrap rates • Delivered solutions with extensive NSF, UL and pipe industry approvals • Supplied dosing equipment to eliminate capital costs, backed with on-call technical support ColorMatrix™ Liquid Colorant + Dosing Equipment KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2023-02/AVNT Q4 2022 Earnings Presentation.pdf
Microsoft PowerPoint - AVNT Q4 2022 Earnings Presentation AVIENT CORPORATION F O U R T H Q U A R T E R 2 0 2 2 R E S U L T S A N D 2 0 2 3 F I N A N C I A L G U I D A N C E (NYSE: AVNT) F E B R U A RY 1 5 , 2 0 2 3 DISCLAIMER 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. GUIDANCE DEBT / LEVERAGE REDUCTION • Completed sale of Distribution and paid down $750M of debt in November • Strong free cash flow in fourth quarter reduced leverage and enabled paydown of additional $200M of debt • Fixed/Floating Debt Ratio 63/37 • Proven track record of deleveraging following acquisitions through consistent free cash flow generation $725 $725 $725 $575 $500 $400 $600 $525 $425 $650 $650 $650 $600 $2.40B $2.20B 2030 Notes 2029 Term Loan 2026 Term Loan 2025 Notes After Distribution Divestiture Year-End Year-End Leverage 3.8x 3.1x 2.9x 2023 Notes After Avient Protective Materials Acquisition $3.15B 2022 TRANSFORMATIONAL PORTFOLIO ENHANCEMENTS 5 EBITDA margins expanded from 12% to 16% Diversified end markets with reduced exposure to more cyclical industries Dyneema® Acquisition $1.48B acquisition strengthens composites platform Significantly improved EBITDA margins $950M divestiture results in 100% specialty sales Strong exit multiple of 10x TTM EBITDA despite market volatility Distribution Divestiture Improved Portfolio GROWING COMPOSITES PLATFORM CONTRIBUTIONS TO SEM SEGMENT 6 Note: 2022 is pro forma for Avient Protective Materials 2016 Sales 2022 Sales Advanced Composites 51% $560M $1,300M Advanced Composites COMPOSITES PORTFOLIO D Y N E E M A ® E X P A N D S O U R E N G I N E E R E D F I B E R S A N D T A P E S T E C H N O L O G Y LFT Tapes Laminates/Panels Shapes Pultrusion Engineered Fibers 7 ADVANCED COMPOSITES PERFORMANCE 8 (1) Pro forma for the acquisition of Avient Protective Materials $51 $84 $212 $668 $4 $10 $41 $169 (1) (1) PORTFOLIO EVOLUTION AND EPS EXPANSION 9 Adj. $600 $592 $3.02 $3.04 FULL YEAR 2022 PERFORMANCE (TOTAL COMPANY PRO FORMA) 15 Sales Adjusted EBITDA $3,712 $3,653 -2% Adjusted EPS -1% + 1% (in millions) (in millions) (+4% excluding FX) (+5% excluding FX) (+9% excluding FX) FULL YEAR 2022 SEGMENT PERFORMANCE 16 CAI $2,402 $2,355 $409 $402 SEM Pro Forma $1,308 $1,300 $278 $272 (+4% excluding FX) - 2% -1% (+5% excluding FX) - 2% (+4% excluding FX) - 2% (+2% excluding FX) PRO FORMA FULL YEAR EPS BRIDGE 17 Pro Forma 2021 Adjusted EPS 3.02$ Foreign Currency (0.23) Russia Import Sales (0.07) Outdoor High Performance (0.13) Color, Additives and Inks 0.18 Specialty Engineered Materials 0.24 Corporate Costs / Other 0.03 Pro Forma 2022 Adjusted EPS 3.04$ FULL YEAR EBITDA BRIDGE (PRO FORMA TOTAL COMPANY) 18 $ millions CAI: Price / Mix 247 Inflation (176) SEM: Price / Mix 121 Inflation (77) Net Price Benefit 115 Wage and Energy Inflation (47) Clariant Color Integration Synergies 23 Incentives, Other Employee Costs 43 FX (34) Full Year 2022 $592 Adjusted Full Year 2021 $ 600 Demand (99) Russia Import Sales (9) • Demand primarily impacted by China lockdowns, 4th quarter industrywide destocking and declining consumer sentiment • Pricing outpaced inflation of raw materials, wages and energy 2023 G U IDA N CE $125 $530 $0.55 $2.40 2023 GUIDANCE 20 Sales Adjusted EBITDA $845 $3,450 Adjusted EPS (in millions) (in millions) CASH FLOW / BALANCE SHEET 21 • IT investment to further integrate acquired businesses and capture operational efficiencies • Restructuring actions to streamline operations and improve profitability, primarily in Europe ($ 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 K E Y G R O W T H D R I V E R S A N D T R A N S F O R M E D P O R T F O L I O GROWTH DRIVERS: PROVEN SUCCESS 23 (1) Pro forma for the acquisition of Avient Protective Materials (APM) COMPOSITES $51 $84 $212 $668 HEALTHCARE $108 $113 $231 $293 8-10% ASIA/EMERGING REGIONS $265 $358 $726 $830 12% $340 $455 $790 $1,175 SUSTAINABLE SOLUTIONS 8-12% (1) (1)(1) (Sales in $ millions) #1 Color Formulator Dyneema® - World’s Strongest Fiber™ #1 in Composites applications for outdoor high performance #1 in Performance Inks Customized solutions 140+ PhDs on staff Rapid development of innovative products Extensive patent (2,500+) portfolio 33% Vitality Index Better-positioned toward stable, high-growth end markets Consumer, packaging, healthcare and defense comprise nearly 60% of sales Agnostic to raw materials, helping all customers achieve their goals Broad portfolio of diversified sustainable solutions 90%+ of our innovation pipeline invested in sustainable solutions Long-term growth rate well above GDP with expectations of 8-12% LEVERAGING OUR TRANSFORMED PORTFOLIO 24 Building & 4% Telecom. 2022 PF $3.65B sales Leading Positions Sustainable SolutionsDiversified IndustriesSpecialty Formulator (1) 2022 Pro forma for the acquisition of Avient Protective Materials (2) 2020 Pro forma for the acquisition of Clariant Color (1)(2) $340M $455M $790M 2016 2018 2020PF 2022PF $1,175M P EE R C O M PAR IS O N S AVIENT IS ASSET LIGHT Capex / Revenue 2023E (%) Avient Specialty Other Specialty / Note: Avient reflects 2023 estimated revenue of $3,450 and estimated run-rate CAPEX of $110M. 27 2 4 4 5 5 5 6 7 7 FREE CASH FLOW CONVERSION Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/sites/default/files/2022-09/Avient Discontinued Operations Financial Information.pdf
Microsoft PowerPoint - Avient Discontinued Operations Financial Information AVIENT CORPORATION R E C A S T F I N A N C I A L I N F O R M A T I O N T O R E F L E C T D I S T R I B U T I O N A S A D I S C O N T I N U E D O P E R A T I O N (NYSE: AVNT) S E P T E M B E R 2 7 , 2 0 2 2 TABLE OF CONTENTS Avient Corporation 2 Slide 3 - GAAP Income Statement Recast for Avient Distribution as a Discontinued Operation Reflects US GAAP (GAAP) Income Statements recast for Avient Distribution as a discontinued operation. G A A P I N C O M E S TAT E M E N T R E C A S T F O R A V I E N T D I S T R I B U T I O N A S A D I S C O N T I N U E D O P E R AT I O N Avient Corporation 3 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 YTD Q1 2022 Q2 2022 YTD 2022 Sales 826.0$ 864.5$ 818.0$ 807.1$ 3,315.6$ 892.2$ 891.0$ 1,783.2$ Cost of sales 562.9 615.9 602.4 590.5 2,371.7 637.8 630.1 1,267.9 Gross margin 263.1 248.6 215.6 216.6 943.9 254.4 260.9 515.3 Selling and administrative 168.7 166.2 162.8 166.4 664.1 152.2 160.8 313.0 Operating income 94.4 82.4 52.8 50.2 279.8 102.2 100.1 202.3 Interest expense, net (19.3) (19.5) (19.0) (17.5) (75.3) (16.9) (16.2) (33.1) Other income (expense), net 1.6 1.1 1.6 (5.3) (1.0) (0.6) 1.6 1.0 Income before income taxes 76.7 64.0 35.4 27.4 203.5 84.7 85.5 170.2 Income tax (expense) benefit (16.3) (13.8) (2.0) (16.2) (48.3) (20.0) (22.7) (42.7) Net income from continuing operations 60.4 50.2 33.4 11.2 155.2 64.7 62.8 127.5 Net income from discontinued operations, net of income taxes 19.3 19.2 19.2 17.7 75.4 19.8 21.9 41.7 Net income 79.7 69.4 52.6 28.9 230.6 84.5 84.7 169.2 Net (income) loss attributable to noncontrolling interests (0.4) (0.6) 0.3 0.9 0.2 (0.3) - (0.3) Net income attributable to Avient common shareholders 79.3$ 68.8$ 52.9$ 29.8$ 230.8$ 84.2$ 84.7$ 168.9$ Earnings per share attributable to Avient common shareholders - Basic Continuing operations 0.66$ 0.54$ 0.37$ 0.13$ 1.70$ 0.70$ 0.69$ 1.39$ Discontinued operations 0.21$ 0.21$ 0.21$ 0.20$ 0.83$ 0.22$ 0.24$ 0.46$ Total 0.87$ 0.75$ 0.58$ 0.33$ 2.53$ 0.92$ 0.93$ 1.85$ Earnings per share attributable to Avient common shareholders - Diluted Continuing operations 0.65$ 0.54$ 0.37$ 0.13$ 1.69$ 0.70$ 0.68$ 1.38$ Discontinued operations 0.21$ 0.20$ 0.20$ 0.19$ 0.82$ 0.21$ 0.24$ 0.45$ Total 0.86$ 0.74$ 0.57$ 0.32$ 2.51$ 0.91$ 0.92$ 1.83$ A D J U S T E D F I N A N C I A L I N F O R M AT I O N R E C A S T F O R A V I E N T D I S T R I B U T I O N A S A D I S C O N T I N U E D O P E R AT I O N Avient Corporation 4 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 YTD Q1 2022 Q2 2022 YTD 2022 Sales 826.0$ 864.5$ 818.0$ 807.1$ 3,315.6$ 892.2$ 891.0$ 1,783.2$ Cost of sales 565.1 603.3 585.1 584.6 2,338.1 632.0 632.1 1,264.1 Gross margin 260.9 261.2 232.9 222.5 977.5 260.2 258.9 519.1 Selling and administrative 164.1 164.6 160.1 161.1 649.9 151.3 157.0 308.3 Operating income 96.8 96.6 72.8 61.4 327.6 108.9 101.9 210.8 Interest expense, net (19.3) (19.5) (19.0) (17.5) (75.3) (16.9) (16.2) (33.1) Other income (expense), net 1.6 1.1 1.5 4.1 8.3 (0.7) 0.7 0.0 Income before income taxes 79.1 78.2 55.3 48.0 260.6 91.3 86.4 177.7 Income tax expense (16.1) (16.3) (10.2) (12.8) (55.4) (20.2) (20.4) (40.6) Net income from continuing operations 63.0 61.9 45.1 35.2 205.2 71.1 66.0 137.1 Net (income) loss attributable to noncontrolling interests (0.4) (0.6) 0.3 0.9 0.2 (0.3) - (0.3) Adjusted Net income attributable to Avient common shareholders - continuing operations 62.6$ 61.3$ 45.4$ 36.1$ 205.4$ 70.8$ 66.0$ 136.8$ Adjusted earnings per share attributable to Avient common shareholders - Diluted 0.68$ 0.66$ 0.49$ 0.39$ 2.23$ 0.77$ 0.72$ 1.48$ Weighted average diluted Shares 92.2 92.4 92.2 92.4 92.1 92.3 92.1 92.2 S E G M E N T D ATA R E C A S T F O R AV I E N T D I S T R I B U T I O N A S A D I S C O N T I N U E D O P E R AT I O N Avient Corporation 5 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 YTD Q1 2022 Q2 2022 2022 YTD Sales: Color, Additives and Inks 609.3$ 624.4$ 586.6$ 581.3$ 2,401.6$ 649.5$ 649.1$ 1,298.6$ Specialty Engineered Materials 214.7 238.9 231.7 226.3 911.6 243.1 242.3 485.4 Corporate and Eliminations 2.0 1.2 (0.3) (0.5) 2.4 (0.4) (0.4) (0.8) Sales 826.0 864.5 818.0 807.1 3,315.6 892.2 891.0 1,783.2 Gross Margin: Color, Additives and Inks 197.5$ 193.4$ 172.1$ 164.5$ 727.5$ 192.1$ 193.4$ 385.5$ Specialty Engineered Materials 63.1 68.1 61.4 58.3 250.9 68.4 66.0 134.4 Corporate and Eliminations 2.5 (12.9) (17.9) (6.2) (34.5) (6.1) 1.5 (4.6) Gross Margin 263.1 248.6 215.6 216.6 943.9 254.4 260.9 515.3 Selling and Administrative Expense: Color, Additives and Inks 108.7$ 107.1$ 105.3$ 103.3$ 424.4$ 97.6$ 99.8$ 197.4$ Specialty Engineered Materials 30.5 32.3 31.4 31.2 125.4 30.1 30.8 60.9 Corporate and Eliminations 29.5 26.8 26.1 31.9 114.3 24.5 30.2 54.7 Selling and Administrative Expense 168.7 166.2 162.8 166.4 664.1 152.2 160.8 313.0 Operating Income: Color, Additives and Inks 88.8$ 86.3$ 66.8$ 61.2$ 303.1$ 94.5$ 93.6$ 188.1$ Specialty Engineered Materials 32.6 35.8 30.0 27.1 125.5 38.3 35.2 73.5 Corporate and Eliminations (27.0) (39.7) (44.0) (38.1) (148.8) (30.6) (28.7) (59.3) Operating Income 94.4 82.4 52.8 50.2 279.8 102.2 100.1 202.3 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA): Color, Additives and Inks 116.2$ 111.6$ 93.4$ 87.6$ 408.8$ 120.5$ 119.5$ 240.0$ Specialty Engineered Materials 40.4 43.9 37.9 35.1 157.3 46.1 42.9 89.0 Corporate and Eliminations (25.3) (39.5) (41.9) (34.6) (141.3) (26.8) (26.0) (52.8) Other income (expense) 1.6 1.1 1.6 (5.3) (1.0) (0.6) 1.6 1.0 EBITDA 132.9 117.1 91.0 82.8 423.8 139.2 138.0 277.2 N O N - G A A P R E C O N C I L I AT I O N S F O R R E C A S T H I S T O R I C A L R E S U LT S Avient Corporation 6 Special Adjusted Special Adjusted Special Adjusted Special Adjusted Special Adjusted Sales $ 826.0 $ - $ 826.0 $ 864.5 $ - $ 864.5 $ 818.0 $ - $ 818.0 $ 807.1 $ - $ 807.1 $ 3,315.6 $ - $ 3,315.6 Gross margin 263.1 (2.2) 260.9 248.6 12.6 261.2 215.6 17.3 232.9 216.6 5.9 222.5 943.9 33.6 977.5 Selling and administrative expense 168.7 (4.6) 164.1 166.2 (1.6) 164.6 162.8 (2.7) 160.1 166.4 (5.3) 161.1 664.1 (14.2) 649.9 Operating income 94.4 2.4 96.8 82.4 14.2 96.6 52.8 20.0 72.8 50.2 11.2 61.4 279.8 47.8 327.6 Interest expense, net (19.3) - (19.3) (19.5) - (19.5) (19.0) - (19.0) (17.5) - (17.5) (75.3) - (75.3) Other income (expense), net 1.6 - 1.6 1.1 - 1.1 1.6 (0.1) 1.5 (5.3) 9.4 4.1 (1.0) 9.3 8.3 Income taxes (16.3) 0.2 (16.1) (13.8) (2.5) (16.3) (2.0) (8.2) (10.2) (16.2) 3.4 (12.8) (48.3) (7.1) (55.4) Net income (loss) attributable to noncontrolling interests (0.4) - (0.4) (0.6) - (0.6) 0.3 - 0.3 0.9 - 0.9 0.2 - 0.2 Net income from continuing operations attributable to Avient shareholders $ 60.0 $ 2.6 $ 62.6 $ 49.6 $ 11.7 $ 61.3 $ 33.7 $ 11.7 $ 45.4 $ 12.1 $ 24.0 $ 36.1 $ 155.4 $ 50.0 $ 205.4 Net income / EPS $ 0.65 0.03 $ 0.68 $ 0.54 0.13 $ 0.66 $ 0.37 0.13 $ 0.49 $ 0.13 $ 0.26 $ 0.39 $ 1.69 0.54 $ 2.23 Weighted-average diluted shares 92.2 92.2 92.2 92.4 92.4 92.4 92.2 92.2 92.2 92.4 92.4 92.4 92.1 92.1 92.1 Three Months Ended 2021年12月31日 Year Ended 2021年12月31日 Three Months Ended 2021年3月31日 Three Months Ended 2021年6月30日 Three Months Ended 2021年9月30日 N O N - G A A P R E C O N C I L I AT I O N S F O R R E C A S T H I S T O R I C A L R E S U LT S Avient Corporation 7 Special Adjusted Special Adjusted Special Adjusted Sales $ 892.2 $ - $ 892.2 $ 891.0 $ - $ 891.0 $ 1,783.2 $ - $ 1,783.2 Gross margin 254.4 5.8 260.2 260.9 (2.0) 258.9 515.3 3.8 519.1 Selling and administrative expense 152.2 (0.9) 151.3 160.8 (3.8) 157.0 313.0 (4.7) 308.3 Operating income 102.2 6.7 108.9 100.1 1.8 101.9 202.3 8.5 210.8 Interest expense, net (16.9) - (16.9) (16.2) - (16.2) (33.1) - (33.1) Other (expense) income, net (0.6) (0.1) (0.7) 1.6 (0.9) 0.7 1.0 (1.0) 0.0 Income taxes (20.0) (0.2) (20.2) (22.7) 2.3 (20.4) (42.7) 2.1 (40.6) Net income attributable to noncontrolling interests (0.3) - (0.3) - - - (0.3) - (0.3) Net income from continuing operations attributable to Avient shareholders $ 64.4 $ 6.4 $ 70.8 $ 62.8 $ 3.2 $ 66.0 $ 127.2 $ 9.6 $ 136.8 Net income / EPS $ 0.70 0.07 $ 0.77 $ 0.68 0.03 $ 0.72 $ 1.38 0.10 1.48 Weighted-average diluted shares 92.3 92.3 92.3 92.1 92.1 92.1 92.2 92.2 92.2 Three Months Ended 2022年3月31日 Three Months Ended 2022年6月30日 Six Months Ended 2022年6月30日 N O N - G A A P R E C O N C I L I AT I O N S F O R R E C A S T A D J U S T E D E B I T D A Avient Corporation 8 EBITDA Reconciliation Q1 2021 Q2 2021 Q3 2021 Q4 2021 YTD 2021 Q1 2022 Q2 2022 YTD 2022 Net income from continuing operations – GAAP 60.4$ 50.2$ 33.4$ 11.2$ 155.2$ 64.7$ 62.8$ 127.5$ Income tax expense 16.3 13.8 2.0 16.2 48.3 20.0 22.7 42.7 Interest expense, net 19.3 19.5 19.0 17.5 75.3 16.9 16.2 33.1 Depreciation and amortization from continuing operations 36.9 33.6 36.6 37.9 145.0 37.6 36.3 73.9 EBITDA 132.9 117.1 91.0 82.8 423.8 139.2 138.0 277.2 Special items, before tax 2.4 14.2 19.9 20.6 57.1 6.6 0.9 7.5 Depreciation and amortization included in special items (0.6) 1.4 (0.9) (1.6) (1.7) (2.1) (1.1) (3.2) Adjusted EBITDA 134.7$ 132.7$ 110.0$ 101.8$ 479.2$ 143.7$ 137.8$ 281.5$ S U M M A R Y O F S P E C I A L I T E M S Avient Corporation 9 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 YTD Q1 2022 Q2 2022 2022 YTD Cost of sales: Restructuring costs, including accelerated depreciation (1.8)$ (1.5)$ (5.3)$ (6.0)$ (14.6)$ (4.4)$ (2.6)$ (7.0)$ Environmental remediation costs (0.5) (12.5) (9.4) (0.5) (22.9) (2.0) (3.0) (5.0) Reimbursement of previously incurred environmental costs 4.5 - - - 4.5 0.6 7.6 8.2 Acquisition related adjustments - 1.4 (2.6) 0.6 (0.6) - - - Impact on cost of sales 2.2 (12.6) (17.3) (5.9) (33.6) (5.8) 2.0 (3.8) Selling and administrative expense: Restructuring, legal and other (1.3) (1.4) - (4.2) (6.9) 2.0 (1.7) 0.3 Acquisition/divestiture related costs (3.3) (0.2) (2.7) (1.1) (7.3) (2.9) (2.1) (5.0) Impact on selling and administrative expense (4.6) (1.6) (2.7) (5.3) (14.2) (0.9) (3.8) (4.7) Impact on operating income (2.4) (14.2) (20.0) (11.2) (47.8) (6.7) (1.8) (8.5) Other income, net - - 0.1 (9.4) (9.3) 0.1 0.9 1.0 Impact on income before income taxes (2.4) (14.2) (19.9) (20.6) (57.1) (6.6) (0.9) (7.5) Income tax benefit on above special items 0.9 3.4 4.6 4.1 13.0 1.7 0.2 1.9 Tax adjustments (1.1) (0.9) 3.6 (7.5) (5.9) (1.5) (2.5) (4.0) Impact of special items on net income (2.6)$ (11.7)$ (11.7)$ (24.0)$ (50.0)$ (6.4)$ (3.2)$ (9.6)$
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