https://www.avient.com/sites/default/files/2021-02/avient-ir-presentation-goldman-sachs-and-morgan-stanley.pdf
W H O W E A R E – V I S I O N , S T R AT E G Y, C U LT U R E
3
Avient Corporation (NYSE: AVNT) provides
specialized and sustainable material solutions that
transform customer challenges into opportunities,
bringing new products to life for a better world.
Free cash flow conversion calculated as (EBITDA – Capex) / EBITDA
Median: 83% Median: 76%
H I G H F R E E C A S H F L OW
C O N V E R S I O N
Avient reflects 2021 estimated EBITDA of $510M and excludes one-time synergy capture CAPEX ($20M)
Source: Peer data per Bloomberg market data as of February 5, 2021
85 87 86 86
81 81
59
92
88
81 79 79 79
76 76 75
73
67 67
64
60
7
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G
C
P
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F
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M
N
B
N
R
E
C
L
C
E
A
S
H
F
O
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G
R
A
H
U
N
K
R
A
S
C
L
A
L
B
Source: Peer data per Bloomberg market data as of February 5, 2021
Total Enterprise Value / 2021E EBITDA
Our current valuation implies an
EBITDA multiple that is significantly
below specialty formulator peers and
our historic valuations, when the
company had considerable exposure
to more cyclical and challenging end
markets.
With the Clariant Masterbatch
acquisition and divestment of the
PP&S business, our exposure is now
concentrated in less-cyclical and
high-growth markets, with increased
geographic diversification and a more
specialized portfolio that can
significantly expand EBITDA margins.
27
Avient reflects 2021 estimated EBITDA of $510M
O U R VA LUATI O N V E R S U S P E E R S
Avient Specialty
Formulators
Other
Chemical/Specialty
Companies
9.5
21.1
13.2 13.2
12.0 12.0
9.7
25.2
23.1
14.7
13.5
12.9
11.0 11.0 11.0 10.2
9.6 9.3 9.3 9.1 8.6 8.3
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A
Median: 11.0xMedian: 12.6x
S U M M A RY: W H Y I N V E S T I N AV I E N T ?
https://www.avient.com/investor-center/news/polyone-shareholders-approve-all-proposals-2016-annual-meeting-robert-m-patterson-becomes-chairman-board
Richard H.
William H.
Richard H.
https://www.avient.com/global-email-disclaimers
Als u niet de bedoelde geadresseerde bent, verzoeken wij u om de afzender van dit bericht bij Avient op de hoogte te stellen en het bericht en de bijlagen onmiddellijk te wissen zonder ze te kopiëren of te openen.
Dank u.
https://www.avient.com/sites/default/files/2020-08/stan-tone-epx-product-bulletin.pdf
% Pigment Specific Gravity Color Index Lightfastness
WHITE
10EPX03 Titanium Dioxide, Rutile 57 1.95 PW-6 I/O
YELLOW
12EPX01 Diarylide AAOT GS 25 1.22 PY-14 I
12EPX03 Diarylide HR RS 20 1.2 PY-83 I/O (Mass)
13EPX02 Isoindolinone RS 30 1.3 PY-110 I/O
13EPX03 Benzimidazolone GS 40 1.27 PY-151 I/O (Mass)
81EPX01 Iron Oxide 40 1.62 PY-42 I/O
ORANGE
15EPX03 Benzimidazolone 30 1.26 PO-36 I/O
RED
23EPX04 Quinacridone BS 25 1.21 PV-19 I/O
23EPX06 Specialty Naphthol BS 30 1.21 PR-170 I/O (Mass) C
25EPX01 Red 2B, Ca Salt Bs 24 1.27 PR-48:2 I/O (Mass)
28EPX01 Red 2B, Ba Salt YS 23 1.29 PR-48:1 I/O (Mass)
82EPX01 Iron Oxide, Light BS 40 1.67 PR-101 I/O
82EPX02 Iron Oxide, Dark BVS 40 1.68 PR-101 I/O
82EPX04 Iron Oxide, Light VYS 40 1.67 PR-101 I/O
BLUE
40EXP03 Phthalocyanine GS 25 1.25 PB-15:3 I/O
40EXP05 Phthalocyanine RS 25 1.25 PB-15:3 I/O
42EXP02 Ultramarine 50 1.54 PB-29 I/O
49EXP01 Cobalt 50 1.83 PB-28 I/O
GREEN
50EPX02 Phthalocyanine BS 18 1.34 PG-7 I/O
50EPX03 Phthalocyanine YS 25 1.42 PG-7 I/O
59EPX01 Chromium Oxide 40 1.64 PG-17 I/O
VIOLET/MAGENTA
24EPX03 Quinacridone Violet 15 1.2 PV-19 I/O
24EPX04 Ultramarine Violet 50 1.66 PV-15 I/O
24EPX05 Quinacridone Magenta 20 1.21 PR-122 I/O
24EPX06 Benzimidazolone 20 1.2 PV-32 I/O
24EPX07 Carbazole Violet 15 1.2 PV-23 I/O
BROWN/TAN
83EPX01 Iron Oxide, Light 39 1.64 PBr-6 I/O
83EPX02 Iron Oxide, Dark 40 1.66 PBr-6 I/O
BLACK
90EPX01 Furnace - High Jet 14 1.23 PBk-7 I/O
90EPX04 Furnace - Medium 20 1.25 PBk-7 I/O
90EPX05 Iron Oxide 50 1.77 PBk-11 I/O
EPX
RS = Red Shade
YS = Yellow Shade
VYS = Very Yellow Shade
BS = Blue Shade
VBS = Very Blue Shade
GS = Green Shade
HR = Heat-Resistant
LIGHTFASTNESS
I = Indoor Only
I/O = Indoor or Outdoor
Mass = Outdoor Masstone
Application Only
C = Some Caution Advised
www.avient.com
Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2021-02/ppsu-masterbatch-product-bulletin_0.pdf
650.00 Black 10% 433C
650.01 Brown 10% 7615C
650.02 Red 10% 186C
650.03 Orange 5% 1495C
650.04 Yellow 10% 142C
650.05 Green 10% 2248C
650.06 Blue 10% 278C
650.07 Violet 20% 2073C
650.08 Grey 10% Cool Gray 7C
650.09 White 10% RAL9010
PPSU RESINS
Product Code Color LDR* Pantone No.**
660.00 Black 6% Black 6C
660.01 Brown 6% 7582C
660.02 Red 8% 7620C
660.03 Orange 6% 1505C
660.04 Yellow 6% 124C
660.05 Green 6% 348C
660.06 Blue 6% 660C
660.07 Violet 15% 7664C
660.08 Grey 6% Cool Gray 8C
660.09 White 6% RAL9010
PSU RESINS
Product Code Color RAL No.*
S837.0 Black 9005
S837.1 Brown 8011
S837.2 Red 3002
S837.3 Orange 2004
S837.4 Light Yellow 1016
S837.5 Green 6032
S837.6 Blue 5015
S837.7 Violet 4005
S837.8 Grey 7037
S837.9 White 9016
PES RESINS
Copyright © 2021, Avient Corporation.
https://www.avient.com/sites/default/files/2021-04/case-study-one-pager-gravi-tech-toothbrush-base.pdf
I TA L I A N M O L D E R &
PA RT P RO D U C E R
L U X U R Y T O O T H B R U S H B A S E
• Density 4.0 SG
• Low water absorption
• Good mechanical performance
• Chemical resistance to toothpaste and cleaning products
• Worked in close collaboration with customer
to fully understand material requirements
• Provided an alternative to metal with the
processing and recyclability benefits of a
polymer
• Enabled customer to launch innovative new
product into the market winning Red Dot
Design Award
Gravi-Tech™ Density Modified Formulations
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2023-09/OnColor Laundry Detergent Case Study Snapshot.pdf
L E A D I N G H O U S E H O L D
G O O D S M A N U FA C T U R E R
L A U N D R Y D E T E R G E N T
B O T T L E
• Increase post-consumer recycled (PCR) content to help
meet state minimum standards
• Improve color consistency to achieve global brand
harmony and enhance on-shelf presence
• Raised PCR level to 40% of the bottle weight,
meeting sustainability goals and minimum PCR
content regulations
• Reduced thickness of outer bottle layer by 30%
while increasing opacity, and removed colorant
from middle layer
• Delivered improved color consistency
• Offered cost savings with a concentrated solution
• Deployed on-site scale-up support at all converter
locations
OnColor™ Polymer Colorants –
Super Concentrated Formulation
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2021-09/avnt-q2-2021-earnings-presentation.pdf
D
is
t.
)
K
W
R
P
P
G
A
V
Y
F
U
L
R
P
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C
P
H
X
L
F
M
C
H
U
N
IF
F
E
C
L
A
S
H
K
R
A
E
M
N
C
E
S
C
L
A
L
B
Median: 5%Median: 3%
Source: Peer data per Bloomberg market data as of July 28, 2021
Avient reflects 2021 estimated revenue of $4,650M and excludes one-time synergy capture CAPEX ($20M)
Avient Specialty
Formulators
Other
Chemical/Specialty
Companies
Free Cash Flow Conversion (1)
2021E (%)
Being asset light helps us to generate
strong free cash flow that is in line
with specialty formulators.
Free cash flow conversion calculated as (EBITDA – Capex) / EBITDA
Median: 81% Median: 78%
H I G H F R E E C A S H F L OW
C O N V E R S I O N
Avient reflects 2021 estimated EBITDA of $580M and excludes one-time synergy capture CAPEX ($20M)
Source: Peer data per Bloomberg market data as of July 28, 2021
87
90
86
82
80 78
73
87
82 82
79 79 78 78 77 76
71
67
46
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t
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P
P
G
A
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F
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P
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G
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P
F
M
C
U
N
V
R
C
E
IF
F
A
S
H
E
C
L
B
N
R
E
M
N
H
X
L
H
U
N
K
R
A
S
C
L
A
L
B
(6)
Source: Peer data per Bloomberg market data as of July 28, 2021
Total Enterprise Value / 2021E EBITDA
Our current valuation with updated
guidance implies an EBITDA multiple
that is below specialty formulator
peers and the median of other
selected chemical / specialty
companies.
With the Clariant Masterbatch
acquisition and divestment of the
PP&S business, our exposure is now
concentrated in less-cyclical and
high-growth markets, with increased
geographic diversification and a more
specialized portfolio that can
significantly expand EBITDA margins.
25
Avient reflects 2021 estimated EBITDA of $580M
O U R VA LUATI O N V E R S U S P E E R S
Avient Specialty
Formulators
Other
Chemical/Specialty
Companies
9.5
18.5
15.1 15.1
14.0
11.0 10.4
29.5
28.2
23.9
18.7
12.4 12.2
11.1
9.3 9.2 9.2
7.6 7.6
6.0
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A
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H
S
C
L
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M
N
U
N
V
R
K
R
A
C
E
H
U
N
Median: 11.1xMedian: 14.6x
S U M M A RY: W H Y I N V E S T I N AV I E N T ?
https://www.avient.com/sites/default/files/2024-02/AVNT Q4 2023 Earnings Presentation_For Website_with Non-GAAP.pdf
Microsoft PowerPoint - AVNT Q4 2023 Earnings Presentation v7
AVIENT CORPORATION
F O U R T H Q U A R T E R 2 0 2 3 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)
F E B R U A R Y 1 4 , 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.
ASHISH KHANDPUR
P R E S I D E N T & C E O
4
5
PORTFOLIO TRANSFORMATION
5
7%
46%
66%
87%
100%
0%
20%
40%
60%
80%
100%
2005 2010 2015 2020 2023
%
o
f A
dj
us
te
d
E
B
IT
D
A
Commodity JVs Distribution Performance Products & Solutions Specialty Businesses
Adjusted EBITDA from Specialty Applications
SUSTAINABILITY AS A GROWTH DRIVER
7
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
( % O F C O M PA N Y S A L E S )
ENERGY
5%
DEFENSE
7%
TELECOMMUNICATIONS
4%
HEALTHCARE
7%
8
TRANSPORTATION
10%
INDUSTRIAL
16%
BUILDING &
CONSTRUCTION 9%
CONSUMER
19%
PACKAGING
23%
9
REGIONAL OBSERVATIONS
( % O F C O M PA N Y S A L E S )
9
US & Canada
Latin America
EMEA
Asia
41%
36%
18%
5%
Q 4 2 0 2 3 R E S U L T S
Q4 2023 PERFORMANCE VS.
PY
( T O TA L C O M PA N Y )
$790
$719
2022 2023
$107
$114
2022 2023
Sales Adjusted EBITDA
(in millions)
$0.42
$0.52
2022 2023
Adjusted EPS
(in millions)
- 9% + 7% + 24%
Sales Adjusted EBITDA Adjusted EPS
13
Q4 2023 SEGMENT PERFORMANCE
14
CAI
$491
$459
Sales
(in millions)
$70
$84
EBITDA
SEM
$301
$260
Sales
$55
$49
EBITDA
- 7% - 14%+20% - 11%
2022 2023
(in millions)
Q4 EBITDA BRIDGE
( T O TA L C O M PA N Y )
15
$ millions
CAI:
Price / Mix 11
Deflation 14
SEM:
Price / Mix 4
Deflation 9
Net Price Benefit 38
Cost Reductions 13
Wage Inflation (8)
Other (2)
Q4 2023 $114
Adjusted
EBITDA
Q4 2022 $ 107
Demand (34) • Demand was down, but less than in previous
quarters, due to slowing pace of destocking
• Positive net price benefit:
o CAI – Pricing flat with favorable mix from
uptick in packaging and consumer end
markets and raw material deflation
o SEM - Pricing flat with favorable mix from
Composites and raw material deflation
• Cost reductions primarily driven by reduced
administrative costs and cost synergies
2 0 2 4 G U I D A N C E
2024 GUIDANCE
Full Year 2024 Guidance
Adjusted EBITDA $505 to $535 million
Adjusted EPS $2.40 to $2.65
Interest Expense $105 to $110 million
Adjusted Effective Tax Rate 23% to 25%
Capital Expenditures ~$140 million
17
Q1 Adjusted EPS of $0.68
A P P E N D I X
20
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
RAW MATERIAL BASKET
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%
22
(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
23
Packaging
34%
Consumer
21%
Healthcare
8%
Industrial
15%
Transportation
9%
Building &
Construction
10%
Telecommunications
1% Energy
2%
COLOR, ADDITIVES & 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%
24
Packaging
5%
Consumer
16%
Healthcare
6%Industrial
16%
Transportation
12%
Telecommunications
9%
Energy
10% Defense
18%
Building &
Construction
8%
END MARKET REGION
SPECIALTY ENGINEERED MATERIALS
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%
25
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/news/archives?page=45
PolyOne Launches First-Ever TPE with Blue Jean Stain Resistance for Phone Cases
CLEVELAND – May 1, 2018 – PolyOne will invite NPE show attendees next week to “Explore the Possibilities” in a meeting center that showcases h