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/knowledge-base/case-study/reducing-weight-automotive-parts
Circular Economy + Sustainability
The Solution
Hydrocerol plays a critical role in an Avient-wide program to support a sustainable plastics industry.
https://www.avient.com/knowledge-base/case-study/reducing-weight-automotive-parts?sust[]=1165
Circular Economy + Sustainability
The Solution
Hydrocerol plays a critical role in an Avient-wide program to support a sustainable plastics industry.
https://www.avient.com/news/archives?page=15
Avient to Unveil New Specialized and Sustainable Solutions at Fakuma 2023
Avient Corporation Awarded Gold Sustainability Rating from EcoVadis
Avient achieved a Gold-Level rating from EcoVadis, a globally recognized sustainability ratings platform.
https://www.avient.com/form/other-request-form
Report Fraud
https://www.avient.com/products/polymer-additives/visual-enhancement-effects/cesa-scratch-mar-resistance-additives
Color and Additives Solutions Overview
Marine Application Material Solutions
Increase sustainability, optimize color usage and reduce weight with just one technology
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Seaport%2520Global%2520Transports%2520%2526%2520Industrials%2520Conference.pdf
PolyOne Investor
Presentation
March 2017
POLYONE CORPORATION 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.
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/products/engineered-polymer-formulations/chemical-corrosion-resistant-formulations/edgetek-pke-polyketone-formulations
Browse and download our literature to learn more about Avient solutions and services.
Edgetek™ PKE Solutions
Take a comprehensive look at the performance and sustainability benefits of this next-gen material solution
https://www.avient.com/knowledge-base/case-study/lightweighting-commercial-trucks-and-trailers
Circular Economy + Sustainability
The Solution
The solution increased loading per square foot and provided a moisture and debris barrier, and because they are thermoplastic, these CFRTP materials can be more easily recycled compared to alternative materials.
https://www.avient.com/knowledge-base/case-study/lightweighting-heavy-trucks?rtype[]=1124
Circular Economy + Sustainability
The Solution
The solution increased loading per square foot and provided a moisture and debris barrier, and because they are thermoplastic, these CFRTP materials will be more easily recycled compared to alternative materials.