https://www.avient.com/sites/default/files/2024-10/2024 AVNT Q3 Webcast Slides w appendix and non-GAAP.pdf
Microsoft PowerPoint - AVNT Q3 2024 Earnings Presentation_10.29_12PM
AVIENT CORPORATION
T H I R D Q U A R T E R 2 0 2 4 R E S U L T S A N D 2 0 2 4
F I N A N C I A L G U I D A N C E
(NYSE: AVNT)
O C T O B E R 3 1 , 2 0 2 4
D I S C L A I M E R
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.
EBITDA
$130 million
+6%
(+7% ex FX)Net Sales
$815 million
+8%
(+8.5% ex FX)
Net Sales
$815 million
+8%
(+8.5% ex FX)
Q 3 2 0 2 4 R E S U L T S
TOTAL COMPANY
( Q 3 2 0 2 4 P E R F O R M A N C E V S Q 3 2 0 2 3 )
$754
$815
Q3 23 Q3 24
$123
$130
Q3 23 Q3 24
Sales Adjusted EBITDA
(in millions)
$0.57
$0.65
Q3 23 Q3 24
(in millions)
Adjusted EBITDA Adjusted EPS
5
+ 8%
(+8.5% excluding FX)
+ 6%
(+7% excluding FX)
+ 14%
(+16% excluding FX)
Sales
6
Q3 2 024 RESULTS – ORGA NI C REVENUE
GROW TH BY REGI ON VS PY
6
US & Canada
Latin America
EMEA
Asia
+9%
+5%
+11%
+27%
Avient ex.
FX +8.5%
FX -0.4%
Total Avient +8.1%
Note: Regional Sales Percentages exclude impact of foreign exchange
COLOR, ADDITIVES & INKS SEGMENT
( Q 3 2 0 2 4 P E R F O R M A N C E V S Q 3 2 0 2 3 )
$487
$522
Q3 23 Q3 24
$89
$97
Q3 23 Q3 24
Sales Adjusted EBITDA
(in millions) (in millions)
Sales Adjusted EBITDA
7
+ 7%
(+8% excluding FX)
+ 9%
(+11% excluding FX)
18.3%
+40 bps *18.7%
*
* Adjusted EBITDA Margin %
• Sales growth driven by winning
new product specifications in
consumer & packaging, strong
underlying demand in healthcare
and improving demand in building
& construction
• Favorable mix and raw material
deflation contributed to EBITDA
margin expansion
SPECIALTY ENGINEERED MATERIALS SEGMENT
( Q 3 2 0 2 4 P E R F O R M A N C E V S Q 3 2 0 2 3 )
$268
$295
Q3 23 Q3 24
$51
$57
Q3 23 Q3 24
Sales Adjusted EBITDA
(in millions) (in millions)
Sales Adjusted EBITDA
8
• Sales growth driven by restocking
in healthcare & consumer end
markets and strong underlying
demand for composite
applications used in building &
construction, energy and defense
end markets
• Favorable mix contributed to
EBITDA margin expansion
+ 10%
(+10% excluding FX)
+ 12%
(+13% excluding FX)
19.0%
+40 bps *19.4%
*
* Adjusted EBITDA Margin %
2 0 2 4 G U I D A N C E
FY 20 24 GUIDA NC E
Previous (Aug 6) Current
Adjusted EPS $2.55 to $2.70 $2.63 to $2.67
Adjusted EBITDA $515 to $540 million $525 to $530 million
Interest Expense $105 million $104 million
Adjusted Effective Tax Rate 23% to 25% 23% to 25%
Capital Expenditures &
Investment in S/4 Hana
~$140 million ~$140 million
10
11
• Investor Day to be held December 4, 2024 at
the NYSE, beginning at 10AM
• The focus will be to do a deep dive on the
Company’s strategy
• Registration and microsite will be available in
early November
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.
https://www.avient.com/sites/default/files/2023-10/reSound REC Automotive Interior Grades Product Bulletin.pdf
Due to the variation in scrap streams, they are
colored black to deliver lot-to-lot consistency, but
additional color options are also possible.
KEY CHARACTERISTICS
• 35–45% PCR/PIR content
• Meet automotive standards for VOC, FOG,
and odor
• Colored black, additional colors are possible
• Customizable formulations
• Overmoldable to PP
MARKETS & APPLICATIONS
The reSound REC 7310 series provides a more
sustainable TPE choice for automotive interior
components and delivers comparable performance
to their traditional counterparts.
https://www.avient.com/sites/default/files/2022-06/Complet REC Technical Bulletin.pdf
COMPLĒT REC PIR NYLON 66 COMPARISON
Complēt REC PIR PA66 materials are available in black or natural.
COMPLĒT REC PCR NYLON 6 COMPARISON
Complēt REC PCR PA6 materials are available in black.
Complēt
LGF50-PA6
Complēt REC
LGF50-PA6
Complēt REC
LGF50-PA6
Post-Consumer
Recycled Resin
0% 50% 100%
Long Glass Fiber 50% 50% 50%
Tensile Strength
35,000 psi
241 MPa
34,000 psi
234 MPa
31,500 psi
217 MPa
Tensile Modulus
2,300 ksi
15,862 MPa
2,250 ksi
15,517 MPa
2,200 ksi
15,172 MPa
Flexural Strength
52,000 psi
359 MPa
51,500 psi
355 MPa
51,500 psi
355 MPa
Flexural Modulus
2,200 ksi
15,172 MPa
2,150 ksi
14,828 MPa
2,100 ksi
14,483 MPa
Izod Notched Impact
5.5 ft-lb/in
294 J/m
4.5 ft-lb/in
240 J/m
4.0 ft-lb/in
214 J/m
Izod Un-Notched Impact
25.0 ft-lb/in
1,335 J/m
23.0 ft-lb/in
1,228 J/m
20.5 ft-lb/in
1,095 J/m
Complēt
LGF50-PA66
Complēt REC
LGF50-PA66
Complēt REC
LGF50-PA66
Post-Industrial
Recycled Resin
0% 50% 100%
Long Glass Fiber 50% 50% 50%
Tensile Strength
36,000 psi
248 MPa
34,500 psi
238 MPa
34,000 psi
234 MPa
Tensile Modulus
2,500 ksi
17,241 MPa
2,400 ksi
16,552 MPa
2,300 ksi
15,862 MPa
Flexural Strength
54,000 psi
372 MPa
52,000 psi
359 MPa
51,000 psi
352 MPa
Flexural Modulus
2,500 ksi
17,240 MPa
2,400 ksi
16,552 MPa
2,300 ksi
15,862 MPa
Izod Notched Impact
5.5 ft-lb/in
294 J/m
4.0 ft-lb/in
214 J/m
3.5 ft-lb/in
187 J/m
Izod Un-Notched Impact
22.5 ft-lb/in
1,202 J/m
19.5 ft-lb/in
1,041 J/m
19.0 ft-lb/in
1,015 J/m
COMPLĒT REC PIR TPU COMPARISON
Complēt REC PIR TPU materials are available in black or natural.
https://www.avient.com/sites/default/files/resources/PolyOne%25202012%2520Annual%2520Report.pdf
482196_DCOV.pdf
ANNUAL REPORT 201 2
U N I Q U E S O L U T I O N S
D I S T I N G U I S H E D P E R F O R M A N C E
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ANNUAL REPORT 2012
PolyOne Corporation,
with 2012 revenues of $3 billion,
is a premier provider of specialized
polymer materials, services and solutions.
Wulfsohn,
Richard H.
WULFSOHN
Chief Executive Officer, Carpenter
Technology Corporation
Committee: 2
1
ANNUAL REPORT 201 2
U N I Q U E S O L U T I O N S
D I S T I N G U I S H E D P E R F O R M A N C E
P
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ANNUAL REPORT 2012
https://www.avient.com/products/advanced-composites/continuous-fiber-composite-tape-laminates-and-barstock/polystrand-continuous-fiber-tapes-laminates
PP-Black
70
PA6-Black
https://www.avient.com/products/long-fiber-technology/complet-long-glass-fiber
Our long glass fiber reinforced products range from 20-70% fiber content (by weight) across a variety of resin systems ranging from polypropylene to higher performance engineering polymers such as PEEK.
https://www.avient.com/news/avient-s-malm-sweden-site-earns-iscc-plus-certification-mevopur-healthcare-bio-based-polymer-solutions
These solutions are made with bio-derived polymers, including polypropylene, polyethylene, polycarbonate, acrylonitrile butadiene styrene (ABS), and styrenics, with bio-derived content ranging from 70% to 100%.
https://www.avient.com/news/showcasing-commitment-sustainability-avient-set-impress-france-innovation-plasturgie
This can reduce product carbon footprint by >70% compared to a similar virgin alternative* and can provide the luxury caps and closures market with an alternative to metal, which is typically associated with higher processing and molding costs.
https://www.avient.com/news/unlocking-sustainability-avient-showcase-solutions-circular-economy-chinaplas-2021
reSound™ R PC contains 25 to 70 percent PCR or PIR (post-industrial recycled) polycarbonate with multiple color options to deliver sustainable benefits to customers.
https://www.avient.com/news/colorforward-predicts-2024-trends-more-harmonious-colors-splash-exuberance
The name is a reference to the percentage of Earth’s surface covered by water (70%), the percentage of total freshwater on the planet (2,5%), and the percentage of freshwater that is not contaminated and hence usable and drinkable (0,4%), according to the United States Geological Survey (USGS).