https://www.avient.com/sites/default/files/2023-05/AVNT Q1 2023 Earnings Presentation.pdf
AVIENT CORPORATION
F I R S T Q U A R T E R 2 0 2 3 R E S U L T S
(NYSE: AVNT)
M AY 3 , 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.
This is due to the inherent difficulty of
forecasting the timing and amount of certain items, such as, but not limited to, mark-to-market adjustments associated with benefit plans, environmental remediation costs, acquisition-related costs, and other non-routine costs.
Non-GAAP financial measures have limitations as analytical tools and
should not be considered in isolation from, or solely as alternatives to, financial measures prepared in accordance with GAAP.
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https://www.avient.com/sites/default/files/resources/Innovation%2520Day%2520-%2520May%25202014.pdf
Slide 1
PolyOne Corporation Page 1
PolyOne Innovation Day
InterContinental Hotel
New York, New York
May 29, 2014
PolyOne Corporation Page 2
Forward-Looking Statements
In this presentation, statements that are not reported financial results or other historical information are “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995.
You are
advised to consult any further disclosures we make on related subjects in our reports on Form 10-Q, 8-K and 10-K that we provide to the Securities and
Exchange Commission.
Patricia Hubbard
Director
Global Technology
NEU™ View
Medical Devices &
Catheters
5) Sustainable Solutions
Michael A.
https://www.avient.com/sites/default/files/2023-03/AVNT Mar 2023 Earnings Presentation.pdf
OUR VISION
At Avient, we create specialized and sustainable material solutions that transform
customer challenges into opportunities, bringing new products to life for a better world.
We create
specialized and sustainable material solutions that transform
customer challenges into opportunities, bringing new products
to life for a better world.
Our customers value the
breadth of our solutions as we can tap into a broad array of
raw materials to solve their specific needs.
https://www.avient.com/news/polyone-helps-schneider-electric-satisfy-global-demand-affordable-sustainable-light-and-power
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PolyOne Helps Schneider Electric Satisfy Global Demand for Affordable, Sustainable Light and Power
PolyOne Corporation, with 2014 revenues of $3.8 billion, is a premier provider of specialized polymer materials, services and solutions.
Guided by its Core Values, Sustainability Promise and No Surprises PledgeSM, PolyOne is committed to its customers, employees, communities and shareholders through ethical, sustainable and fiscally responsible principles.
https://www.avient.com/sites/default/files/2024-03/AVNT February IR Presentation_w_Non-GAAP Recs_v2.pdf
Additionally, Adjusted EPS excludes the impact of special items and amortization
expense associated with intangible assets.
3
AVIENT OVERVIEW
OUR VISION: Creating specialized and sustainable materials solutions that transform customer challenges into opportunities, bringing new products to life for a better world
2023 Financial ResultsCompany Overview Revenue By:
9,300
Employees
102
Manufacturing
Sites
20,000+
Customers
Key Highlights
Premier formulator of specialized
and sustainable materials solutions
Asset-light business model, with
flexibility to adapt to customer needs
Best-in-class technology and service
(140+ PhDs / 2,500+ patents)
History of transformation through
successful M&A while consistently
returning cash to shareholders
Poised for continued future growth in
excess of GDP
$3.14B
Revenue
$2.36
$502M
Adjusted EBITDA
16.0%
Adjusted EBITDA Margins
$186M
Adjusted Free Cash Flow
Over $1B in share
buybacks since 2011
Raised dividend for
13 consecutive years,
a 15% CAGR since
2011
U.S. &
Canada
64%
Specialty
Engineered
Materials
Color
Additives
and Inks
23%
10% 5% 4%
Building &
Energy Telecom
Geography
Segment
Industry
4
CREATING A WORLD-CLASS
SUSTAINABLE ORGANIZATION
1. 6% annualized long term sales
growth leveraging sustainable
solutions, composites, healthcare
and emerging regions
2.
Continue fostering our Great
Place to Work® culture
Strategic Objectives
Long Term
Growth
Rates
Growth Drivers
$340
$455
$790
$1,135
$51 $84
$212
$645
$108 $113
$231 $230
$265
$358
$726 $725
8-12% 8-10% 8-10% 5%
Sustainable Solutions Composites Healthcare Asia/Emerging Regions
Profitable Growth Great Place to Work
5.4%
10.9%
16.0%
2006 2014 2023
EBITDA Margins
$0.14
$1.93
$2.36
2006 2014 2023
TOP-TIER SUSTAINABILITY PERFORMANCE
AND RECOGNITION
Industry Sustainability Standards
ESG Ratings Performance
1
4
87th
94th
percentile
5
Avient CDP Score:
A-
FE BRUARY 14 , 2024
W E BCAS T
P RE S E N TAT I O N
DR.
ASHISH KHANDPUR
PRESIDENT & CEO
7
8
PORTFOLIO TRANSFORMATION
8
46%
66%
87%
100%
0%
20%
40%
60%
80%
100%
2005 2010 2015 2020 2023
%
o
f A
dj
us
te
d
EB
IT
D
A
Commodity JVs Distribution Performance Products & Solutions Specialty Businesses
Adjusted EBITDA from Specialty Applications
SUSTAINABILITY AS A GROWTH DRIVER
9
LONG-TERM REVENUE GROWTH DRIVERS
Sustainable
Solutions
Composites, Healthcare,
Asia / LATAM
Overlap
Other
60%+
Key Growth
Drivers
Total Company Revenue
Growth Drivers Long-Term
Growth Rate
Sustainable Solutions 8–12%
Composites 8–10%
Healthcare 8–10%
Asia / LATAM 5%
Other 0–2%
Avient 6%
END MARKET OBSERVATIONS
(% OF COMPANY SALES)
ENERGY
DEFENSE
TELECOMMUNICATIONS
HEALTHCARE
10
TRANSPORTATION
INDUSTRIAL
BUILDING &
CONSTRUCTION 9%
CONSUMER
PACKAGING
23%
11
REGIONAL OBSERVATIONS
(% OF COMPANY SALES)
11
Q 4 2023 RE S U LT S
Q4 2023 PERFORMANCE VS.
https://www.avient.com/sites/default/files/2023-11/AVNT Q3 2023 Earnings Presentation - Website.pdf
AVIENT CORPORATION
T H I R D Q U A R T E R 2 0 2 3 R E S U L T S
(NYSE: AVNT)
N OV E M B E R 2 , 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.
PRIOR YEAR
$790
$710
2022 2023
$107
$112
2022 2023
Sales Adjusted EBITDA
$0.42
$0.47
2022 PF 2023
Adjusted EPS
- 10% + 5% + 12%
Sales Adjusted EBITDA Adjusted EPS
12
$112
$500
$0.47
$2.30
Q4 AND FULL YEAR 2023 GUIDANCE
$710
$3,130
Sales Adjusted EBITDA Adjusted EPS
13
(in millions) (in millions)
Guidance: Free Cash Flow
$180 $180
Prior Guidance Guidance
FREE CASH FLOW & INCREASED DIVIDEND
13th Consecutive Dividend Increase
0.16
0.26
0.42
0.58
0.79
0.85
0.99
1.03
2011 2013 2015 2017 2019 2021 2023 2024
14
S U S TAI NABI L I T Y DAY
RE CAP
SUSTAINABILITY AS A GROWTH DRIVERLONG-TERM REVENUE GROWTH DRIVERS
60%+
Key Growth
Drivers
Sustainable
Solutions
Composites, Healthcare,
Asia / LATAM
Overlap
Other
(GDP Growth)
Total Company Revenue
Growth Drivers Long-Term
Growth Rate
Sustainable Solutions 8–12%
Composites 8–10%
Healthcare 8–10%
Asia / LATAM 5%
Other (GDP growth) 0–2%
Avient 6%
17
SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH
8-12%
Long Term
Growth
50
90
2022 2030
Medical Plastics
Market Size
(in $Billions)
2020 2030
Recycled
Plastics
Virgin
Plastics
Growing Demand
for Recycled
Content
Avient Sustainable
Solutions
18
46
2023 2032
Global Offshore Annual
Wind Installations
(in Gigawatts)
Sources: McKinsey, Bloomberg, Grand View Research
SUSTAINABILITY TRENDS DRIVE
LONG-TERM GROWTH
18
• Transformative acquisitions
combined with divestitures of
more cyclical businesses have
improved margins over 400 bps
since 2018
• 20% long-term margin goal to
be driven by key growth drivers,
with sustainable solutions
playing a meaningful role
5.4%
11.5%
16.0%
2006 2018 2023E Recovery Growth
Drivers
Strategic
Objective
20%+
+1%+
+3%+
ADJUSTED EBITDA MARGIN EXPANSION
19
• 6% annualized long-term sales growth leveraging
sustainable solutions, composites, healthcare, and
emerging regions
• Expand EBITDA margins to 20%
• Deliver annual EBITDA and EPS growth of
10% and 15%
• Maintain asset-light, 80% free cash flow conversion
profile and be valued as a specialty formulator
• Continue fostering our Great Place to Work® culture
CREATING A WORLD-CLASS
SUSTAINABLE ORGANIZATION
20
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.
Non-GAAP financial measures have limitations as analytical tools and
should not be considered in isolation from, or solely as alternatives to, financial measures prepared in accordance with GAAP.
https://www.avient.com/news/polyone-recognized-innovation-and-excellence-china
This knowledge allows us to develop innovative solutions that help customers increase profitability and gain market share.
PolyOne Corporation, with 2013 revenues of $3.8 billion, is a premier provider of specialized polymer materials, services and solutions.
Guided by its Core Values, Sustainability Promise and No Surprises PledgeSM, PolyOne is committed to its customers, employees, communities and shareholders through ethical, sustainable and fiscally responsible principles.
https://www.avient.com/products/polymer-additives/barrier-and-scavenger-additives/colormatrix-amosorb-4020r-rpet-booster
This solution helps brand owners and converters achieve sustainability targets in recycled packaging.
Recycle Solutions
Sustainable Additives White Paper for Food and Beverage Packaging