https://www.avient.com/sites/default/files/2021-06/vinod-purayath-bio.pdf
Vinod Purayath is Senior Vice President and Chief Technology Officer of Avient
Corporation, a premier provider of specialized and sustainable material solutions and
services.
At SanDisk Corporation, he held technical and
engineering leadership positions over an eight-year period, building and leading a global
team of engineers, whose success underpinned the growth of the company.
Avient Corporation • 33587 Walker Road • Avon Lake, Ohio 44012 • 440.930.1000 • www.avient.com
https://www.avient.com/
https://www.avient.com/sites/default/files/2024-08/Avient Q2 2024 Earnings Call Presentation.pdf
IR Deck - AVNT-2024.06.30 (Earnings)
AVIENT CORPORATION
S E C O N 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)
AU G U S T 6 , 2 0 2 4
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.
FX +4.6%
FX -1.5%
Total Avient +3.1%
Note: Regional Sales Percentages exclude impact of foreign exchange
Q2 2024 SEGMENT PERFORMANCE
(COLOR, ADDITIVES & INKS)
$525
$542
$94
$108
19.9%
(in millions) (in millions)
7
17.9%
+200 bps
* Adjusted EBITDA Margin %
• Organic sales growth in all
regions led by Americas
• Raw material deflation combined
with cost reduction actions drove
EBITDA margin expansion
+ 3%
(+5% excluding FX)
+ 15%
(+17% excluding FX)
Q2 2024 SEGMENT PERFORMANCE
(SPECIALTY ENGINEERED MATERIALS)
$301
$308
$60
$64
20.6%
(in millions) (in millions)
8
19.8%
+80 bps
* Adjusted EBITDA Margin %
• Sales growth in consumer,
healthcare and building &
construction end markets offset
by weaker demand in
telecommunications
• EBITDA margin expansion
driven by positive end market
mix as well as raw material
deflation
+ 2%
(+4% excluding FX)
+ 7%
(+8% excluding FX)
2024 G U IDA N CE
FY 2024 GUIDANCE
Previous (May 7) Current
Adjusted EBITDA $510 to $535 million $515 to $540 million
Adjusted EPS $2.50 to $2.65 $2.55 to $2.70
Interest Expense $105 million $105 million
Adjusted Effective Tax Rate 23% to 25% 23% to 25%
Capital Expenditures ~$140 million ~$140 million
10
Q3 2024: Adjusted EPS of $0.62
11
Highlights
• Provides performance updates on 2030
Sustainability Goals
• Reduced company’s Scope 1 & 2 GHG emissions
by 48% since 2019
• Highlights ESG performance ratings, certifications,
and awards, including recent upgrades by
Ecovadis to Gold and CDP to A-
• Reflects Great Place to Work® culture focused on
health, safety and employee engagement
2023 SUSTAINABILITY REPORT
11
Sustainability for a
Better Tomorrow
2023
SUSTAINABILITY REPORT
12
• Investor Day to be held December 4, 2024 in
New York, NY
• The focus will be to do a deep dive on the
Company’s strategy
• Further details to be communicated
2024 AVIENT INVESTOR DAY
AP P EN D IX
15
Performance
Additives
15%
Pigments
TiO2
Dyestuffs
Polyethylene
10%Nylon
Polypropylene
Styrenic Block
Copolymer
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%
36%
2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
19%
23%Industrial
Building and
7%
END MARKET REVENUE
$2,007M $358M
$1,138M $224M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$502M$3,143M
(1)
7%
17
(1) Total company sales and adjusted EBITDA of $3,143M and $502M, respectively, include intercompany sales eliminations and corporate costs
2023 REVENUE | $2 .0 B ILL ION
34%
37%
21%
END MARKET REGION
18
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 B ILL ION
52%
35%
19
6%Industrial
12%
10% Defense
Building &
END MARKET REGION
SPECIALTY ENGINEERED MATERIALS
32%
26%
Building &
6%
2% Defense
1%
(18% of sales)
2023 AVIENT REGIONAL SALES
25%
Building &
(36% of sales)Transportation
22%
Building &
12%
6%
US &
Canada
(41% of sales)
59%
22%
Building &
LATAM
(5% of sales)
20
BY END MARKET
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.
A reconciliation of these measures to their most directly comparable GAAP measures is provided in the tables below.
2024 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income from continuing operations attributable to Avient shareholders $ 33.6 $ 0.36 $ 22.1 $ 0.24
Special items, after-tax 21.8 0.24 19.6 0.21
Amortization expense, after-tax 14.8 0.16 16.2 0.18
Adjusted net income / EPS $ 70.2 $ 0.76 $ 57.9 $ 0.63
Three Months Ended
Reconciliation to EBITDA and Adjusted EBITDA: 2024 2023
Net income from continuing operations – GAAP $ 33.8 $ 22.3
Income tax expense 11.2 10.4
Interest expense, net 26.6 29.4
Depreciation & amortization 44.9 47.6
EBITDA from continuing operations $ 116.5 $ 109.7
Special items, before tax 28.1 21.7
Interest expense included in special items (1.0) —
Depreciation & amortization included in special items (0.3) (0.1)
Adjusted EBITDA $ 143.3 $ 131.3
Adjusted EBITDA as a percent of sales 16.9 % 15.9 %
1
2024 2023
Sales:
Color, Additives and Inks $ 542.0 $ 524.5
Specialty Engineered Materials 308.1 300.8
Corporate (0.4) (0.9)
Sales $ 849.7 $ 824.4
Operating income:
Color, Additives and Inks $ 86.1 $ 68.0
Specialty Engineered Materials 42.8 39.7
Corporate (56.4) (45.4)
Operating income $ 72.5 $ 62.3
Depreciation & amortization:
Color, Additives and Inks $ 21.8 $ 25.7
Specialty Engineered Materials 20.8 19.9
Corporate 2.3 2.0
Depreciation & amortization $ 44.9 $ 47.6
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 107.9 $ 93.7
Specialty Engineered Materials 63.6 59.6
Corporate (54.1) (43.4)
Other expense, net (0.9) (0.2)
EBITDA from continuing operations 116.5 109.7
Special items, before tax 28.1 21.7
Interest expense included in special items (1.0) —
Depreciation & amortization included in special items (0.3) (0.1)
Adjusted EBITDA $ 143.3 $ 131.3
Adjusted EBITDA as a percent of sales:
Color, Additives and Inks 19.9 % 17.9 %
Specialty Engineered Materials 20.6 % 19.8 %
2
Year Ended
December 31, 2023
Operating income:
Color, Additives and Inks $ 259.9
Specialty Engineered Materials 142.5
Corporate (205.6)
Operating income $ 196.8
Depreciation & amortization:
Color, Additives and Inks $ 98.3
Specialty Engineered Materials 81.5
Corporate 9.0
Depreciation & amortization $ 188.8
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 358.2
Specialty Engineered Materials 224.0
Corporate (196.6)
Other income, net 5.8
EBITDA from continuing operations 391.4
Special items, before tax 114.6
Interest expense included in special items (2.3)
Depreciation & amortization included in special items (1.9)
Adjusted EBITDA $ 501.8
3
Avient Q2 2024 Webcast Slides_for website_with non-GAAP_8_5.pdf
IR Deck - AVNT-2024.06.30 - 8.02.24 1130AM.pdf
Attachment
Avient Q2 2024 Webcast Slides_for website_with non-GAAP.pdf
AVNT cover slide.pdf
https://www.avient.com/sites/default/files/2024-02/US_OH_North Baltimore_ ISO_IEC 17025.pdf
No. 0562.01) Revised 05/31/2022 Page 1 of 1
SCOPE OF ACCREDITATION TO ISO/IEC 17025:2017
AVIENT CORPORATION
733 East Water Street
North Baltimore, OH 45872
Claire Holman Phone: (419) 257-1327
MECHANICAL
Valid To: October 31, 2023 Certificate Number: 0562.01
In recognition of the successful completion of the A2LA evaluation process, accreditation is granted to this
laboratory to perform the following automotive plastics tests:
Test Method: Test Name:
ASTM D412 Tensile
ASTM D523 Specular Gloss
ASTM D618 (A) Conditioning of Plastics
ASTM D624 (Die C) Tear Strength
ASTM D638 Tensile Properties
ASTM D792 (A) Density and Specific Gravity by Displacement
ASTM D1004 Initial Tear Resistance
ASTM D1203 (A) Volatile Loss
ASTM D1895 (A) Apparent Density, Bulk Factor, Pourability
ASTM D1921 Particle Size (Sieve Analysis)
ASTM D2240 Durometer Hardness (Shore A and D)
ASTM E1331 Color by Spectrophotometry Using Hemispherical Geometry
FMVSS 571.302 Flammability
FORD BN-102-01 (A) Low Temperature Flexibility
FORD BO-131-03 Interior Odor
ISO 3795 Determination of Burning Behavior of Interior Materials
SAE J323 (A) Cold Cracking (Mandrel Bend)
SAE J1351 Hot Odor for Insulation Materials
SAE J1545 Instrumental Color Difference Measurement
SAE J1756 Fogging Characteristics of Interior Automotive Materials (Photometric Only)
DOC-058151 Angle of Repose
1 Laboratory Developed Method
For the tests to which this accreditation applies, please refer to the laboratory’s Mechanical Scope of Accreditation.
Accredited Laboratory
A2LA has accredited
AVIENT CORPORATION
North Baltimore, OH
for technical competence in the field of
Mechanical Testing
This laboratory is accredited in accordance with the recognized International Standard ISO/IEC 17025:2017
General requirements for the competence of testing and calibration laboratories.
https://www.avient.com/sites/default/files/2024-12/Avient Norwalk A2LA ISO17025-17.pdf
No. 0962.01) 09/05/2023 Page 1 of 1
SCOPE OF ACCREDITATION TO ISO/IEC 17025:2017
AVIENT CORPORATION
80 North West Street
Norwalk, OH 44857
Craig Polta Phone: 419 660 4278
MECHANICAL
Valid To: September 30, 2025 Certificate Number: 0962.01
In recognition of the successful completion of the A2LA evaluation process, accreditation is granted to this
laboratory to perform the following tests on plastics:
Test Method(s)
Test Name
ASTM D256; ISO 180 Notched Izod
ISO 179 (1eA) Determination of Charpy Impact
ASTM D523 Gloss
ASTM D618 (Method A) Conditioning of Test Specimens
ASTM D792 (Method A) Specific Gravity
ASTM D1238 (Method B) Melt Flow Rate
ASTM D3012 Thermal Oxidative Stability
ASTM D3641 Injection Molding Test Specimens
FMVSS 302 Flammability
ASTM E1331; SAE J1545 Spectrophotometric Color Difference
SAE J1885 (Rev.
Accredited Laboratory
A2LA has accredited
AVIENT CORPORATION
Norwalk, OH
for technical competence in the field of
Mechanical Testing
This laboratory is accredited in accordance with the recognized International Standard ISO/IEC 17025:2017
General requirements for the competence of testing and calibration laboratories.
https://www.avient.com/sites/default/files/2021-02/avients-publication-of-uk-tax-strategy.pdf
AVIENT CORPORATION GROUP’S PUBLICATION OF UK TAX STRATEGY
Introduction
This document summarizes Avient Corporation and its worldwide affiliates’ (together “The Avient Group”) policy
and approach to conducting United Kingdom (“UK”) tax affairs and managing tax risk.
This document has been
approved by Avient Corporation’s Vice President, Tax, and by each of the UK sub-groups owned by the Avient
Group through such appropriate board of directors of the UK sub-groups.
https://www.avient.com/sites/default/files/2021-12/Chemically Resistant Materials Whitepaper.pdf
Schematic representation of creep mechanism; chain alignment and void formation in response to applied stress.
3© 2021 Avient Corporation, 33587 Walker Road, Avon Lake, Ohio USA 44012
There are several key factors which can influence
the timeline to ESC failure:
1.
List of polymers tested and identifying features.
6© 2021 Avient Corporation, 33587 Walker Road, Avon Lake, Ohio USA 44012
To assess the results of the chemical resistance
testing, an ESCR criteria was developed that took
into consideration a visual observation as well
as the mechanical data.
- -
8© 2021 Avient Corporation, 33587 Walker Road, Avon Lake, Ohio USA 44012
Table 3B.
https://www.avient.com/sites/default/files/2024-10/Avient_CodeConduct_2024_SVE2.pdf
Dessa finns på The Loop, under
People & Departments, Ethics & Corporate Policies.
Detta måste godkännas av Corporate
Communications department.
Avients policy för gåvor och underhållning finns tillgänglig på The
Loop, under People & Departments, Ethics & Corporate Policies.
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 RY 1 4 , 2 0 2 4
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.
PY
$790
$719
$107
$114
Sales Adjusted EBITDA
$0.42
$0.52
Adjusted EPS
- 9% + 7% + 24%
Sales Adjusted EBITDA Adjusted EPS
13
Q4 2023 SEGMENT PERFORMANCE
14
CAI
$491
$459
Sales
$70
$84
SEM
$301
$260
Sales
$55
$49
- 7% - 14%+20% - 11%
Q4 EBITDA BRIDGE
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
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 DA 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
TiO2
Dyestuffs
Polyethylene
10%Nylon
Polypropylene
Styrenic Block
Copolymer
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%
36%
2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
19%
23%Industrial
Building and
END MARKET REVENUE
$2,007M $358M
$1,138M $224M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$502M$3,143M
(1)
22
(1) Total company sales and adjusted EBITDA of $3,143M and $502M, respectively, include intercompany sales eliminations and corporate costs
2023 REVENUE | $2 .0 BILLION
34%
37%
21%
END MARKET REGION
23
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 BILLION
52%
35%
24
6%Industrial
12%
10% Defense
Building &
END MARKET REGION
SPECIALTY ENGINEERED MATERIALS
32%
26%
Building &
6%
2% Defense
1%
(18% of sales)
2023 AVIENT REGIONAL SALES
25%
Building &
(36% of sales)Transportation
22%
Building &
12%
6%
US &
Canada
(41% of sales)
59%
22%
Building &
LATAM
(5% of sales)
25
BY END MARKET
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.
Three Months
Ended Year Ended
Reconciliation of Pro Forma Adjusted Earnings per Share December 31, 2022
Net (loss) income from continuing operations attributable to Avient
shareholders $ (17.0) $ 82.8
Special items, after tax 38.3 116.2
Amortization expense, after-tax 14.6 49.0
Adjusted net income from continuing operations excluding special
items 35.9 248.0
Pro forma adjustments* 2.5 13.6
APM pro forma amortization expense, after-tax* — 19.1
Pro forma adjusted net income from continuing operations attributable
to Avient shareholders $ 38.4 $ 280.7
Weighted average diluted shares 91.7 92.2
Pro forma adjusted EPS - excluding special items pro forma for APM
acquisition $ 0.42 $ 3.04
* Pro forma adjustment to reflect APM results for the period before Avient ownership including the impacts of debt financing and paydown of
debt with net proceeds from the Distribution sale.
2
Three Months Ended
Year Ended
2023 2022 2023 2022
Sales:
Color, Additives and Inks $ 459.4 $ 490.8 $ 2,007.4 $ 2,355.0
Specialty Engineered Materials 259.8 300.8 1,138.2 1,044.4
Corporate (0.2) (1.2) (2.8) (2.5)
Sales $ 719.0 $ 790.4 $ 3,142.8 $ 3,396.9
Operating income:
Color, Additives and Inks $ 61.8 $ 44.3 $ 259.9 $ 301.0
Specialty Engineered Materials 29.4 35.2 142.5 140.1
Corporate (48.1) (79.1) (205.6) (197.8)
Operating income $ 43.1 $ 0.4 $ 196.8 $ 243.3
Other expense, net: $ 4.3 $ (28.4) $ 5.8 $ (59.7)
Depreciation & amortization:
Color, Additives and Inks $ 22.2 $ 25.2 $ 98.3 $ 101.3
Specialty Engineered Materials 19.8 20.3 81.5 48.7
Corporate 2.2 3.1 9.0 12.5
Depreciation & amortization $ 44.2 $ 48.6 $ 188.8 $ 162.5
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 84.0 $ 69.5 $ 358.2 $ 402.3
Specialty Engineered Materials 49.2 55.5 224.0 188.8
Corporate (45.9) (76.0) (196.6) (185.3)
Other expense, net $ 4.3 $ (28.4) $ 5.8 $ (59.7)
EBITDA $ 91.6 $ 20.6 $ 391.4 $ 346.1
Special items in EBITDA 22.3 86.8 110.4 162.5
EBITDA - excluding special items $ 113.9 $ 107.4 $ 501.8 $ 508.6
APM pro forma adjustments - 8 months 2022* — — — 83.1
Pro forma EBITDA $ 113.9 $ 107.4 $ 501.8 $ 591.7
* Pro forma adjustment for January - August 2022 APM results (period before Avient ownership).
3
AVNT Q4 2023 Earnings Presentation_For Website_with Non-GAAP.pdf
AVNT Q4 2023 Earnings Presentation_For Website.pdf
IR Deck - AVNT-2023.12.31 (2.12.24 9PM Milestone February 12 0905 pm).pdf
Attachment
Non-GAAP Update.pdf
https://www.avient.com/sites/default/files/2024-10/Avient Human Right Policy - July 2024.pdf
The Board of Directors
has ultimate responsibility for matters related to governance and corporate responsibility, and the
Governance and Corporate Responsibility Committee provides oversight and guidance with regard
to how the Board and management evaluate and integrate corporate responsibility and
sustainability into Avient’s business strategy, decision-making and stakeholder communication,
including this Human Rights Policy.
Avient takes pride in our role as a responsible corporate citizen, and the importance of
collaborative relationships with our many stakeholder groups.
Our suppliers and partners understand that our relationship is based on an expectation
of compliance with applicable laws and regulations and adherence to internationally recognized
environmental, social, corporate governance and management systems standards.
https://www.avient.com/sites/default/files/2022-05/Compensation Committee Charter (REV 10-2019).pdf
Microsoft Word - Compensation Committee Charter (REV 10-2019)3[1].docx
AVIENT CORPORATION
COMPENSATION COMMITTEE CHARTER
Membership
• The Committee will consist entirely of directors who meet the definition of “independent” as
set forth in the Corporate Governance Standards of the New York Stock Exchange, including
the additional independence requirements set forth in New York Stock Exchange Listed
Company Manual Section 303A.02(a)(ii)
Review and approve corporate goals and objectives relevant to the Chief Executive Officer’s
compensation; in conjunction with the evaluation conducted by the Board as described in the
Company’s Corporate Governance Guidelines, evaluate the Chief Executive Officer’s
performance in light of these goals and objectives; and determine and approve (or determine
and approve, and recommend to the independent members of the Board for their
determination and approval) the Chief Executive Officer’s compensation level based on this
evaluation and comparable market data provided by the independent compensation
consultant
The Corporate Secretary or designee will be responsible for keeping minutes of the
Committee meetings