https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Investor Presentation_website w Non-GAAP.pdf
Microsoft PowerPoint - AVNT Q1 2024 Investor Presentation
AVIENT CORPORATION
I N V E S T O R P R E S E N T A T I O N
(NYSE: AVNT)
M AY 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.
Q1 2023
(TOTAL COMPANY)
$846 $829
$134
$143
17.3%
(in millions)
$0.63
$0.76
(in millions)
+ 7% + 21%
Sales Adjusted EBITDA Adjusted EPS
9
- 2%
15.8%
+150 bps
Q1 2024 SEGMENT PERFORMANCE
(COLOR, ADDITIVES & INKS)
$537
$515
$91
$97
18.8%
(in millions) (in millions)
+ 7%
10
- 4%
17.0%
+180 bps
• Year over year demand
continues to improve for the
segment but slowly due to
continued weakness in Europe
• Raw material deflation & cost
reduction actions primary drivers
of adjusted EBITDA growth and
margin expansion of +180 bps vs
Q1 2023
Q1 2024 SEGMENT PERFORMANCE
(SPECIALTY ENGINEERED MATERIALS)
$310
$314
$64
$73
23.2%
(in millions) (in millions)
+ 14%
11
+ 1%
20.8%
+240 bps
• Sales growth in defense end
market offset by weaker
demand in telecommunications
end market
• Raw material deflation and
favorable mix impact from
defense sales primary drivers
of adjusted EBITDA growth and
margin expansion of +240 bps
vs Q1 2023
Q1 EBITDA BRIDGE
(TOTAL COMPANY)
12
$ millions
CAI:
Price / Mix (1)
Deflation 16
SEM:
Price / Mix 4
Deflation 7
Net Price Benefit 26
Wage/Other Inflation (9)
FX (2)
Q1 2024 $143
Adjusted
EBITDA
Q1 2023 $ 134
Demand (6)
• Positive net price benefit:
o Favorable raw material
deflation in both segments
• Wage and other inflation more than
offset cost reductions/synergies
2024 G U IDA N CE
FY 2024 GUIDANCE
Original Revised
Adjusted EBITDA $505 to $535 million $510 to $535 million
Adjusted EPS $2.40 to $2.65 $2.50 to $2.65
Interest Expense $105 to $110 million $105 million
Adjusted Effective Tax Rate 23% to 25% 23% to 25%
Capital Expenditures ~$140 million ~$140 million
14
Q2 2024: Adjusted EPS of $0.71
CE O “TO P O F M IN D ”
FO CU S ARE A S
AREAS OF FOCUS
16
+7%
Drive Profitable Organic
Top-Line Growth with
Margin Expansion
Amplify Innovation Build Leadership & Talent
Pipeline
AP P EN D IX
19
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%
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)
21
(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
22
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 B ILL ION
52%
35%
23
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)
24
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 $ 49.4 $ 0.54 $ 20.8 $ 0.23
Special items, after-tax 5.5 0.06 22.3 0.24
Amortization expense, after-tax 14.9 0.16 15.1 0.16
Adjusted net income / EPS $ 69.8 $ 0.76 $ 58.2 $ 0.63
Three Months Ended
Reconciliation to EBITDA and Adjusted EBITDA 2024 2023
Net income from continuing operations – GAAP $ 49.7 $ 21.3
Income tax expense 16.8 7.7
Interest expense, net 26.6 28.8
Depreciation and amortization 44.3 50.5
EBITDA from continuing operations 137.4 108.3
Special items, before tax 6.2 27.3
Depreciation and amortization included in special items (0.5) (1.8)
Adjusted EBITDA $ 143.1 $ 133.8
Adjusted EBITDA as a percent of sales 17.3 % 15.8 %
1
2024 2023
Sales:
Color, Additives and Inks $ 515.3 $ 537.0
Specialty Engineered Materials 314.4 309.7
Corporate (0.7) (1.0)
Sales $ 829.0 $ 845.7
Operating income:
Color, Additives and Inks $ 74.8 $ 65.6
Specialty Engineered Materials 53.4 43.1
Corporate (34.2) (51.6)
Operating income $ 94.0 $ 57.1
Depreciation & amortization:
Color, Additives and Inks $ 21.9 $ 25.8
Specialty Engineered Materials 19.6 21.2
Corporate 2.8 3.5
Depreciation & amortization $ 44.3 $ 50.5
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 96.7 $ 91.4
Specialty Engineered Materials 73.0 64.3
Corporate (31.4) (48.1)
Other (expense) income, net (0.9) 0.7
EBITDA from continuing operations 137.4 108.3
Special items, before tax 6.2 27.3
Depreciation and amortization included in special items (0.5) (1.8)
Adjusted EBITDA $ 143.1 $ 133.8
Adjusted EBITDA as a percent of sales:
Color, Additives and Inks 18.8 % 17.0 %
Specialty Engineered Materials 23.2 % 20.8 %
December 31, 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS
Net income from continuing operations attributable to Avient shareholders $ 75.8 $ 0.83
Special items, after-tax 79.3 0.86
Amortization expense, after-tax 61.5 0.67
Adjusted net income / EPS $ 216.6 $ 2.36
Free Cash Flow Calculation December 31, 2023
Cash provided by operating activities $ 201.6
Taxes paid on gain on sale of business 104.1
Adjusted cash provided by operating activities 305.7
Capital expenditures (119.4)
Free cash flow $ 186.3
Year Ended
December 31, 2023
Sales:
Color, Additives and Inks $ 2,007.4
Specialty Engineered Materials 1,138.2
Corporate (2.8)
Sales $ 3,142.8
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 and amortization included in special items (1.9)
Adjusted EBITDA $ 501.8
Adjusted EBITDA as a percent of sales 16.0 %
3
Year Ended
December 31,
Reconciliation to EBITDA and Adjusted EBITDA: 2006 2014
Sales $ 2,622.4 $ 3,835.5
Net income from continuing operations – GAAP $ 133.5 $ 77.2
Income tax expense 29.7 11.2
Interest expense, net 63.1 62.2
Depreciation and amortization 57.1 123.9
EBITDA from continuing operations 283.4 274.5
Special items, before tax (34.0) 164.9
Depreciation and amortization included in special items — (23.1)
Joint venture equity income (107.0) —
Adjusted EBITDA $ 142.4 $ 416.3
Adjusted EBITDA as a percent of sales 5.4 % 10.9 %
Year Ended
December 31,
Reconciliation of Adjusted EPS: 2006 2014
Net income from continuing operations attributable to Avient common shareholders $ 130.9 $ 78.0
Joint venture equity earnings, after-tax (68.5) —
Special items, after-tax (21.2) 101.0
Special items, tax adjustments (30.0) (10.5)
Amortization expense, after-tax 1.4 12.4
Adjusted net income from continuing operations attributable to Avient common
shareholders $ 12.6 $ 180.9
Diluted shares 92.8 93.5
Adjusted EPS attributable to Avient common shareholders $ 0.14 $ 1.93
AVNT Q1 2024 Investor Presentation_w Non-GAAP.pdf
IR Deck - AVNT-2024.03.31 5.09 4PM.pdf
Attachment
https://www.avient.com/sites/default/files/2024-11/AVNT M11 Investor Presentation_w_Non-GAAP.pdf
Microsoft PowerPoint - AVNT M11 Investor Presentation
AVIENT CORPORATION
I N V E S T O R P R E S E N T A T I O N
(NYSE: AVNT)
N OV E M B E R 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 +8.5%
FX -0.4%
Total Avient +8.1%
Note: Regional Sales Percentages exclude impact of foreign exchange
COLOR, ADDITIVES & INKS SEGMENT
$487
$522
$89
$97
(in millions) (in millions)
10
+ 7%
(+8% excluding FX)
+ 9%
(+11% excluding FX)
18.3%
+40 bps *18.7%
*
* Adjusted EBITDA Margin %
• Sales growth driven by winning
new product specifications in
consumer & packaging, strong
underlying demand in healthcare
and improving demand in building
& construction
• Favorable mix and raw material
deflation contributed to EBITDA
margin expansion
SPECIALTY ENGINEERED MATERIALS SEGMENT
$268
$295
$51
$57
(in millions) (in millions)
11
• Sales growth driven by restocking
in healthcare & consumer end
markets and strong underlying
demand for composite
applications used in building &
construction, energy and defense
end markets
• Favorable mix contributed to
EBITDA margin expansion
+ 10%
(+10% excluding FX)
+ 12%
(+13% excluding FX)
19.0%
+40 bps *19.4%
*
* Adjusted EBITDA Margin %
2024 G U IDA N CE
FY 2024 GUIDANCE
Previous (Aug 6) Current
Adjusted EPS $2.55 to $2.70 $2.63 to $2.67
Adjusted EBITDA $515 to $540 million $525 to $530 million
Interest Expense $105 million $104 million
Adjusted Effective Tax Rate 23% to 25% 23% to 25%
Capital Expenditures &
Investment in S/4 Hana
~$140 million ~$140 million
13
14
• Investor Day to be held December 4, 2024 at
the NYSE, beginning at 10AM
• The focus will be to do a deep dive on the
Company’s strategy
• Registration available at
www.avient.com/investors
2024 AVIENT INVESTOR DAY
AP P EN D IX
17
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%
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)
19
(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
20
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 B ILL ION
52%
35%
21
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)
22
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(1) $ EPS(1)
Net income from continuing operations attributable to Avient shareholders $ 38.2 $ 0.41 $ 5.1 $ 0.06
Special items, after-tax 6.6 0.07 32.0 0.35
Amortization expense, after-tax 15.0 0.16 15.2 0.16
Adjusted net income / EPS $ 59.8 $ 0.65 $ 52.3 $ 0.57
(1) Per share amounts may not recalculate from figures presented herein due to rounding
Three Months Ended
Reconciliation to EBITDA and Adjusted EBITDA: 2024 2023
Net income from continuing operations – GAAP $ 38.7 $ 5.1
Income tax expense (benefit) 11.3 (0.1)
Interest expense, net 26.9 30.3
Depreciation & amortization 45.1 46.4
EBITDA from continuing operations $ 122.0 $ 81.7
Special items, before tax 9.7 43.2
Interest expense included in special items (1.3) (2.2)
Depreciation & amortization included in special items (0.4) —
Adjusted EBITDA $ 130.0 $ 122.7
Adjusted EBITDA as a percent of sales 15.9 % 16.3 %
1
2024 2023
Sales:
Color, Additives and Inks $ 521.5 $ 486.5
Specialty Engineered Materials 294.6 267.9
Corporate (0.9) (0.7)
Sales $ 815.2 $ 753.7
Operating income:
Color, Additives and Inks $ 75.5 $ 64.5
Specialty Engineered Materials 36.4 30.3
Corporate (34.7) (60.5)
Operating income $ 77.2 $ 34.3
Depreciation & amortization:
Color, Additives and Inks $ 21.9 $ 24.6
Specialty Engineered Materials 20.7 20.5
Corporate 2.5 1.3
Depreciation & amortization $ 45.1 $ 46.4
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 97.4 $ 89.1
Specialty Engineered Materials 57.1 50.8
Corporate (32.2) (59.2)
Other (expense) income, net (0.3) 1.0
EBITDA from continuing operations $ 122.0 $ 81.7
Special items, before tax 9.7 43.2
Interest expense included in special items (1.3) (2.2)
Depreciation & amortization included in special items (0.4) —
Adjusted EBITDA $ 130.0 $ 122.7
Adjusted EBITDA as a percent of sales:
Color, Additives and Inks 18.7 % 18.3 %
Specialty Engineered Materials 19.4 % 19.0 %
Year Ended
December 31, 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS
Net income from continuing operations attributable to Avient shareholders $ 75.8 $ 0.83
Special items, after-tax 79.3 0.86
Amortization expense, after-tax 61.5 0.67
Adjusted net income / EPS $ 216.6 $ 2.36
Adjusted Free Cash Flow Calculation December 31, 2023
Cash provided by operating activities $ 201.6
Capital expenditures (119.4)
Free cash flow 82.2
Taxes paid on gain on sale of business 104.1
Adjusted free cash flow $ 186.3
Year Ended
December 31, 2023
Sales:
Color, Additives and Inks $ 2,007.4
Specialty Engineered Materials 1,138.2
Corporate (2.8)
Sales $ 3,142.8
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
Adjusted EBITDA as a percent of sales 16.0 %
3
Avient M11 Investor Presentation.pdf
IR Deck - AVNT-2024.09.30 (M11) - 11.05.24 11AM.pdf
Attachment
https://www.avient.com/sites/default/files/2022-03/Versaflex-Footwear insert-Application snapshot_0330.pdf
AVIENT SOLUTION
LEARN MORE
Copyright © 2021, Avient Corporation.
All Rights Reserved.Copyright © 2022, Avient Corporation.
https://www.avient.com/sites/default/files/2021-05/norbert-merklein.pdf
NORBERT MERKLEIN
Vice President and General Manager EMEA, Color, Additives and Inks
Norbert Merklein serves as vice president and general manager for the Europe, Middle
East and Africa (EMEA) region of Color, Additive and Inks at Avient Corporation, a premier
provider of specialized and sustainable material solutions and services.
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/2021-10/information-systems-use-policy-final-9.1.2021.pdf
Information Systems Use Policy
Effective date: September 1, 2021
Available on the Avient Ethics & Corporate Policies Page on the Loop
Confidential 2 Avient IT Department
Information Systems Use Policy September 1, 2021
Table of Contents
Purpose .......................................................................................................................................................... 3
Scope.............................................................................................................................................................. 3
Usage ............................................................................................................................................................. 3
Expectations for Use of Information Systems ........................................................................................... 3
Prohibited Uses of Information Systems ................................................................................................... 3
Personal Use .............................................................................................................................................. 4
Social Media .............................................................................................................................................. 4
Enforcement and Monitoring ......................................................................................................................... 4
Questions and Additional Information .......................................................................................................... 5
Document Change and Review History ........................................................................................................ 5
Appendix A: Definitions................................................................................................................................ 6
Confidential 3 Avient IT Department
Information Systems Use Policy September 1, 2021
PURPOSE
This Information Systems Use Policy (“Policy”) establishes acceptable and prohibited uses of Avient’s
Information Systems to protect Avient and its employees and affiliates from both intentionally and
unintentionally harmful actions by Users.
PROHIBITED USES OF INFORMATION SYSTEMS
Users shall not use Avient Information Systems for any of the following prohibited uses:
• Any activity prohibited by applicable law;
• Violating Avient Ethics and Corporate Policies;
• Infringing on the intellectual property rights of another individual or company;
• Soliciting for activities or products unrelated to Avient’s business interests in furtherance
of an independent business;
• Improper or unauthorized use of email and email distribution lists, including mass or
unsolicited emails (such as chain letters) and forging email header information or
signatures;
• Exporting, transferring, downloading, copying, or saving Confidential Data or
Information Systems to non-approved devices or locations;
• Intentionally introducing security threats to Information Systems or effecting a Cyber or
Data Incident; or
• Engaging in any other activity similar to the above that, in Avient’s reasonable judgment,
is disruptive to or not in the best interests of its business.
Personal social media involving or referencing Avient must be in accordance with Avient
Corporate and Ethics Policies.
https://www.avient.com/sites/default/files/2024-04/Maxxam REC - Outdoor Socket - Case Study Snapshot.pdf
AVIENT SOLUTION
RECYCLED + UV RESISTANCE
LEARN MORE
© 2024 Avient Corporation, All Rights Reserved Social Plastic® is a registered trademark of The Plastic Bank Recycling Corporation
https://www.avient.com/products/engineered-polymer-formulations/sustainable-formulations/maxxam-rec-recycled-polyolefin-formulations
Hager group
https://www.avient.com/sites/default/files/2020-08/michaelgarratt.pdf
Garratt is senior vice president, president, Color, Additives & Inks for the Europe,
Middle East and Africa (EMEA) region at Avient Corporation, a premier provider of specialized
and sustainable material solutions and services.
Avient Corporation • 33587 Walker Road • Avon Lake, Ohio 44012 • 440.930.1000 • www.avient.com
https://www.avient.com/sites/default/files/2023-09/65567-Certificate-08SEP2023.pdf
This is to certify that the Quality Management System of:
Avient Corporation
Avient Corporation - Glendale, AZ
7601 North Glen Harbor Blvd.
https://www.avient.com/sites/default/files/2024-12/2024 Avient Executive Bios_Holger Kronimus.pdf
HOLGER KRONIMUS
Vice President, Europe
General Manager, Engineered Materials Europe
Holger Kronimus is Vice President, Europe, and General Manager, Specialty Engineered
Materials Europe at Avient Corporation, an innovator of materials solutions that help
customers succeed while enabling a sustainable world.
Avient Corporation • 33587 Walker Road • Avon Lake, Ohio 44012 • 440.930.1000 • www.avient.com
https://www.avient.com/sites/default/files/2024-12/2024 Avient Executive Bios Leslie Sequeira.pdf
LESLIE SEQUEIRA
Chief Information Officer
Leslie Sequeira is Chief Information Officer at Avient Corporation, an innovator of materials
solutions that help customers succeed while enabling a sustainable world.
Avient Corporation • 33587 Walker Road • Avon Lake, Ohio 44012 • 440.930.1000 • www.avient.com