https://www.avient.com/sites/default/files/resources/PolyOne%25202017%2520Annual%2520Report.pdf
On January 2, 2018, the Company completed the acquisition of IQAP Masterbatch Group S.L.
We believe this contract assures the availability of adequate amounts of PVC resin.
Recent Developments
On January 2, 2018, the Company completed the acquisition of IQAP Masterbatch Group S.L.
https://www.avient.com/sites/default/files/2021-11/avnt-november-investor-meetings.pdf
Post-consumer recycled content as percentage of total plastic packaging volume, by weight
E NA B L I N G T H E U S E O F R E C YC L E D C O N T EN T
T O P 5 G A P S T H A T W E A R E A D D R E S S I N G
2) DECONTAMINATION1) COLOR MANAGEMENT 3) MAINTAINING MECHANICAL
PROPERTIES
4) MONO-MATERIAL
CONSTRUCTION
5) CONSISTENT RECYCLED
MATERIAL QUALITY
15
G U I D I N G B R A N D S T O W H A T I S P O S S I B L E
C A S E S T U DY W I T H B R A N D OW N E R
Recycled ResinVirgin Resin
16
S U S TA I NA B I L I T Y F O R A B ET T E R TO M O R ROW
17
• Revenue from sustainable solutions expected
to grow 18% in 2021 as our innovation efforts
and collaboration with customers continues to
accelerate
• Investments centered around innovation and
global sustainability megatrends
o Enabling a circular economy –
Technologies that allow for increased use of
post-consumer recycled (PCR) material and
improve recyclability of plastics
o Light-weighting – Composites and CAI
applications to reduce weight and material
requirements, which minimize energy and
carbon emissions
o Eco-Conscious – Health and human safety
applications as well as Avient’s alternative
materials to replace lead, PVC, halogens,
BPA and other less eco-friendly options
17
*Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”)
**2020 is Pro Forma to include full year of the Clariant Color business
2016 2017 2018 2019 2020PF** 2021E
$405M
$455M
$340M
$550M
$790M
Revenue From Sustainable Solutions* 2016-2021
$930M
17
Q3 2020 $925 $74
Sustainable Solutions 35 19% 14
Healthcare 51 44% 10
Composites 13 39% 6
Growth in Asia / LATAM 14 11% 3
Other 177 39% 16
Sub-total $1,215 31% $123
Supply Chain Disruption Costs (19)
COVID Response Applications (5) (3)
FX Impact 10 2
Synergies 12
Incentives, Travel, Other Employee Costs (16)
Q3 2021 $1,220 32% $99
Q3 2021 SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
18
Sales Growth Rate
Adjusted
Operating
Income$ millions
19
Q3 2020 Q3 2021
(1) Financial information is presented on a constant currency basis
(1)
(44% of total revenue)
(56% of total revenue)
Q3 END MARKET SALES PERFORMANCE
+20%
+31%
+40%
+24%
+46%
+40%
+14%
+33%
Energy Telecom Building &
Construction
Transportation Industrial Healthcare Packaging Consumer
Q3 YEAR-OVER-YEAR EBITDA BRIDGE
20
• Demand driven by growth
in sustainable solutions,
healthcare and consumer
applications
• Price increases more than
offsets raw material and
supply chain impacts
• Synergy capture on pace
to achieve $50M in annual
savings in 2021
Q3 2020 $ 111
Demand 29
Adjusted
EBITDA$ millions
CAI:
Price / Mix 51
Inflation (37)
SEM:
Price / Mix 25
Inflation (22)
Distribution:
Price / Mix 108
Inflation (103)
Net Price Benefit 22
Supply Chain Disruption Costs (19)
COVID Response Applications (3)
Synergies 12
Incentives, FX, Other (16)
Q3 2021 $ 136
21
• Price increases have more than
covered raw material and freight
inflation impacts of $300M year-
to-date compared to 2020
• Demand impact driven by
Q3 seasonality for the business
Q2 TO Q3 SEQUENTIAL EBITDA BRIDGE
Q2 2021 $ 159
CAI:
Price / Mix 17
Inflation (8)
SEM:
Price / Mix 6
Inflation (5)
Distribution:
Price / Mix 35
Inflation (35)
Net Price Benefit 10
Supply Chain Disruption Costs (4)
Demand / Seasonality (35)
Other 6
Q3 2021 $ 136
Adjusted
EBITDA$ millions
F U L L Y E A R 2 0 2 1
O U T L O O K
$308
$430
2020PF 2021E
$1.93
$3.00
2020PF 2021E
FULL YEAR GROWTH PROJECTIONS
( T O TA L C O M PA N Y )
23
Sales Adjusted Operating Income
$3,783
$4,750
2020PF 2021E
+ 26%
Adjusted EPS
+ 40% + 55%
(in millions) (in millions)
(1) Financial information is pro forma to include a full year of Clariant Color acquisition
(1)(1)(1)
$1.74
$1.93
$3.00
2019PF 2020PF 2021E
$442
$457
$580
2019PF 2020PF 2021E
FULL YEAR 2019 – 2021 GROWTH
( T O TA L C O M PA N Y )
24
Sales Adjusted EBITDA
$3,981
$3,783
$4,750
2019PF 2020PF 2021E
+ 19%
Adjusted EPS
(1) Financial information is pro forma to include a full year of Clariant Color acquisition
(1) (1)
(in millions) (in millions)
(1)(1)
+ 31% + 72%
(1) (1)
0.1 0.1
0.2
0.5
0.6
0.7
0.8
0.9
0.9
1.0 1.0
11 12 13 14 15 16 17 18 19 20 21
40%
99%
YTD 5 - YR 10 - YR
0.16
0.20
0.26
0.34
0.42
0.50
0.58
0.72
0.79 0.81
0.85
0.95
11 12 13 14 15 16 17 18 19 20 21 22
2.1x
Q4 NET LEVERAGE
~$1Bn
REPURCHASED
OVER LAST 10 YEARS
~$450MM
PAID OVER LAST 11 YEARS
C R E AT I N G VA LU E F O R SH A R E H O L D E R S
25
Share Performance Dividends Share Repurchases Deleveraging
3.5x
2.1x
2019PF 2021E
Growing Dividend Cumulative Buybacks Net Leverage
$
B
n
$
p
e
r
sh
a
re
Total Shareholder Return
~$4Bn
MARKET CAP INCREASE
OVER LAST 10 YEARS
(1) Share performance includes reinvested dividends and is as of 10.25.2021
(2) Financial information is pro forma to include a full year of Clariant Color acquisition
(1)
(2)
494%
SUSTA INAB ILITY R EPORT
Continuous ESG Improvement
26
• Updated 2030 Sustainability Goals
• Further disclosure on key Environmental,
Social, and Governance impacts
• Joined U.N.
https://www.avient.com/company/sustainability/sustainability-report/products/product-stewardship-global-chemical-management-product-excellence
Avient is actively involved in various associations including the ACC, European MasterBatchers and Compounders (EuMBC), European Plastics Converters (EuPC) and Titanium Dioxide Manufacturers Association (TDMA).
https://www.avient.com/industries/healthcare/medical-devices-equipment/surgical-medical-instruments
Medical-grade colorant and functional additive masterbatches with robust bio-compatibility pre-testing to ISO, US Pharmacopeia, European Pharmacopeia, and ICH Q3D protocols to reduce risk, increase appeal, and boost performance
https://www.avient.com/sites/default/files/2021-11/avient-design-ergonomic-design-guide.pdf
Common regulations
• REACH SVHC, RoHS 3 (EU 2015/863),
CA Prop 65, Heavy Metals (CONEG, 94/62/EC)
and Conflict Minerals
• Substances of Concern (could include
phthalates, latex, PVC, BPA, halogens, PAH,
flame retardants)
Other market-specific regulations
• Consumer Product Safety Improvement Act of
2008 (CPSIA)
- Lead and phthalate limits for products
designed for children
• Chemicals of High Concern for Children (CHCC)
- Several US states (OR, WA, VT, ME, MN) have
lists of chemicals of concern for products
designed for children
• Global Automotive Declarable Substance List
(GADSL)
- Specifically for automotive applications
• End of Life Vehicles (ELV) Directive, 2000/53/EC
- Restrictions on certain heavy metals for .
https://www.avient.com/sites/default/files/2022-02/AVNT Q4 2021 Earnings Presentation_0.pdf
Purchase price multiple rapidly declining on strength of
business and synergy capture
10
$133
$205
2019PF 2021
10
Clariant Color EBITDA Growth
Purchase Price Multiple
10.8x
7.0x
6.1x
2019PF 2021 2021 w/ Full
Synergies
(1)
(1)
11.9%
16.2%
2019PF 2021
EBITDA Margins
(1)
CLARIANT COLOR:
TRANSFORMATIONAL ACQUISITION
($ in millions)
(1) Financial information is pro forma to include a full year of Clariant Color business
($ millions)
Initial
Synergy
Estimate
2021
Synergy
Realization
Total
Synergies
Expected
Administrative $ 18 $ 29 $ 40
Sourcing 24 20 24
Operational 18 5 21
Total Synergies $ 60 $ 54 $ 85
C L A R I A N T C O LO R I N T E G R AT I O N &
C O S T S Y N ERG I E S U PDATE
11
• Integration going extremely well: synergy target increased to $85 million at December 9th Investor Day
• Relentless focus on guiding principles of safety first, employee collaboration and exceeding customer expectations
• Future revenue synergies are not part of these estimates and represent additional growth over the long term
S U S TA I NA B I L I T Y F O R A B ET T E R TO M O R ROW
12
• Revenue from sustainable solutions grew
16% in 2021 and expected to grow 8-12% in
2022 as our innovation efforts and
collaboration with customers accelerates
• Investments centered around innovation and
global sustainability megatrends
o Enabling a circular economy –
Technologies that allow for increased use of
post-consumer recycled (PCR) material and
improve recyclability of plastics
o Light-weighting – Composites and CAI
applications to reduce weight and material
requirements, which minimize energy and
carbon emissions
o Eco-Conscious – Health and human safety
applications as well as Avient’s alternative
materials to replace lead, PVC, halogens,
BPA and other less eco-friendly options
12
*Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”)
**2020 is Pro Forma to include full year of the Clariant Color business
12
2016 2017 2018 2019 2020PF** 2021
$405M
$455M
$550M
$790M
Revenue From Sustainable Solutions* 2016-2021
$915M
$340M
PEOPL E
C U L T U R E I S E V E R Y T H I N G
Community Service
7x Safer
than Industry Average
World-Class Safety
Leadership Development
Over $16 million
raised since 2010
Diversity & Inclusion
13
Q4 2020 $997 $80
Sustainable Solutions 23 12% 8
Healthcare 53 43% 9
Composites 7 22% 2
Growth in Asia / LATAM 14 10% 3
Other 118 23% 2
Sub-total $1,212 22% $104
Wage Inflation and Overtime (11)
Other Supply Chain Costs (4)
Synergies 9
Incentives, FX, Other Employee Costs (10) (13)
Q4 2021 $1,202 21% $85
Q4 2021 SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
14
Sales Growth Rate
Adjusted
Operating
Income$ millions
Adjusted
EBITDA
Q4 EBITDA BRIDGE
15
Price increases more than
offsets raw material and
supply chain impacts
Q4 2020 $ 118
Demand -
$ millions
CAI:
Price / Mix 62
Inflation (45)
SEM:
Price / Mix 25
Inflation (20)
Distribution:
Price / Mix 114
Inflation (109)
Net Price Benefit 27
Wage Inflation and Overtime (11)
Other Supply Chain Costs (4)
Synergies 9
Incentives, FX, Other Employee Costs (13)
Q4 2021 $ 126
Transportation (5)$
Outdoor High Performance (3)
Other 8
Total Demand -
Q4 2021 SEGMENT PERFORMANCE
16
CAI
$526
$581
Sales
($ in millions)
SEM Distribution
$58
$61
Operating Income
+ 11% + 6%
$305
$425
Sales
$18
$22
Operating Income
+ 39% + 22%
(1)
$191
$228
Sales
$30
$29
Operating Income
+ 19% - 3%
2 0 2 2 O U T L O O K
REVENUE GROWTH DRIVERS
Growth Drivers
Long-Term
Growth Rate
2022E
Growth Rate
Sustainable Solutions 8–12% 12%
Healthcare 8–10% 10%
Composites 10% 3%
Asia / LATAM 5% 6%
Other (GDP growth) 2–3% 2–3%
Avient 6.5% 6%
18
Excluding Outdoor High Performance 13%
(7.5% excl.
https://www.avient.com/resources/safety-data-sheets?page=4103
FDM 78113 PURPLE PVC
https://www.avient.com/resources/safety-data-sheets?page=5265
Geon(TM) V1794 GRAY PVC
https://www.avient.com/resources/safety-data-sheets?page=5654
Geon(TM) V1821 WHITE FLUID BED PVC
https://www.avient.com/resources/safety-data-sheets?page=6233
POLYONE V1840H WIRE FLUID BED PVC