https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Investor Presentation_website w Non-GAAP.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
• Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future;
• The effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks;
• Disruptions or inefficiencies in our supply chain, logistics, or operations;
• Changes in laws and regulations in jurisdictions where we conduct business, including with respect to plastics and climate change;
• Fluctuations in raw material prices, quality and supply, and in energy prices and supply;
• Demand for our products and services;
• Production outages or material costs associated with scheduled or unscheduled maintenance programs;
• Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters;
• Our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends;
• Information systems failures and cyberattacks;
• Amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions;
• Our ability to achieve strategic objectives and successfully integrate acquisitions, including the implementation of a cloud-based enterprise resource planning system, S/4HANA;and
• Other factors affecting our business beyond our control, including without limitation, changes in the general economy, changes in interest rates, changes in the rate of inflation, geopolitical conflicts and any recessionary conditions
Use of Non-GAAP Measures
This presentation includes the use of both GAAP (generally accepted accounting principles) and non-GAAP financial measures.
Q1 2023
( T O TA L C O M PA N Y )
$846
$829
Q1 23 Q1 24
$134
$143
Q1 23 Q1 24
17.3%
Sales Adjusted EBITDA
(in millions)
$0.63
$0.76
Q1 23 Q1 24
Adjusted EPS
(in millions)
+ 7% + 21%
Sales Adjusted EBITDA Adjusted EPS
9
- 2%
15.8%
+150 bps
*
*
* Adjusted EBITDA Margin %
Q1 2024 SEGMENT PERFORMANCE
( C O L O R , A D D I T I V E S & I N K S )
$537
$515
Q1 23 Q1 24
$91
$97
Q1 23 Q1 24
18.8%
Sales Adjusted EBITDA
(in millions) (in millions)
+ 7%
Sales Adjusted EBITDA
10
- 4%
17.0%
+180 bps
*
*
* Adjusted EBITDA Margin %
• 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
( S P E C I A LT Y E N G I N E E R E D M AT E R I A L S )
$310
$314
Q1 23 Q1 24
$64
$73
Q1 23 Q1 24
23.2%
Sales Adjusted EBITDA
(in millions) (in millions)
+ 14%
Sales Adjusted EBITDA
11
+ 1%
20.8%
+240 bps
*
*
* Adjusted EBITDA Margin %
• 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
( T O TA L C O M PA N Y )
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
2 0 2 4 G U I D A N C E
FY 20 24 GUIDA NC E
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
C E O “ T O P O F M I N D ”
F O C U S A R E A S
AREAS OF FOCUS
16
+7%
Drive Profitable Organic
Top-Line Growth with
Margin Expansion
Amplify Innovation Build Leadership & Talent
Pipeline
A P P E N D I X
19
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
RA W MATERI AL BA SKET
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%
21
(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
22
Packaging
34%
Consumer
21%
Healthcare
8%
Industrial
15%
Transportation
9%
Building &
Construction
10%
Telecommunications
1% Energy
2%
COLOR , AD DI TI VES & 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%
23
Packaging
5%
Consumer
16%
Healthcare
6%Industrial
16%
Transportation
12%
Telecommunications
9%
Energy
10% Defense
18%
Building &
Construction
8%
END MARKET REGION
SPEC IA LTY ENGI NEER ED MATERI ALS
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%
24
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/sites/default/files/2022-05/DOC 1879.pdf
This document is property of Avient
Corporation and may not be reproduced or communicated to third parties without authorization.
8.0 Technology
Is there a review program to
control and assure proper
development of products from the
research state through
production?
Is an effective internal auditing program in
place?
Does Avient have a supplier rating/evaluation
program?
https://www.avient.com/sites/default/files/2024-10/Avient CDP Climate Change %26 Water Submission 20241001.pdf
3.6.1.26) Strategy to realize opportunity
Our Research and Development teams are continually tasked with the development of new products and services, while continuing to adhere to standards defined by
programs such as our Sustainability Solutions, where possible.
Below is an example of our global recognition programs: Our Chairman’s Leadership Award recognizes
our top performing General Manager for performance, culture and inspirational leadership
These sites are currently developing site-specific mitigation
actions including water conservation programs.
https://www.avient.com/news/polyone-invisio-sm-color-inspiration-2016-inspires-designers
These collections, which draw upon global trends and expertise in color research, have been developed for brands and designers to inspire future creative decision-making.
Whether they are developing a new color range or adapting existing colors to accommodate a new phase in their product’s lifecycle, these innovators can work with InVisiO services throughout the design development process to bring their vision to life.”
Color Inspirations 2016 is just one of the exciting elements from InVisiO Color and Design Services, which leverages comprehensive color and materials resources from PolyOne to drive innovation in plastic product development.
https://www.avient.com/news/premium-sporting-knife-manufacturer-relies-polyone’s-bergamid-nylon-extend-its-brand-message
CLEVELAND – When French outdoor equipment specialist Avanona began development of a new range of hunting and camping knives, the company’s designers wanted to extend the innovation to the knives’ sheaths as well.
PolyOne developed a material for our company that is durable, functional and looks great, just like our knives,” said Jean-Charles Quesnel and Philippe Héberlé, the co-founders of Avanona.
Collaborating closely with Avanona, polymer science experts from PolyOne developed the Bergamid material to provide excellent surface finish and the durability to withstand extreme use.
https://www.avient.com/products/polymer-additives/fiber-additives/cesa-fiber-tracer-concentrates
Available for polyester and polyamide (nylon), including recycled grades – possibility to develop solutions for bio-polymers
Discover Cesa™ Fiber Tracer Concentrates, a low-investment and efficient taggant technology specifically developed for synthetic fibers.
Find out how you can increase the traceability of textile products with Cesa Fiber Tracer Concentrates, a low-investment and efficient taggant technology specifically developed for spun-dyed polypropylene and polyamide (nylon) fibers.
https://www.avient.com/resource-center/services/avient-design/engineering
Discover FEA capabilities and the benefits for new product development.
Learn best practices to reduce development time and improve product performance
Transform Product Development
https://www.avient.com/company/sustainability/sustainability-report/products/markets/packaging-case-study
We continue to work with our customers to develop innovative sustainable solutions.
In addition to our material solutions, Avient has developed services to further enable our customers’ ability to meet their commitments, including Cycleworks, ColorWorks and Avient Design.
Avient’s PCR Color Prediction Service helped L’Oréal simplify overall color development with recycled resin.
https://www.avient.com/sites/default/files/2021-06/fl.us-.datasheet-kevlar-para-aramid.pdf
History
Kevlar® was first developed by chemist Stephanie Kwolek at DuPont™ in the
1930’s.
Key Features
• High strength to weight ratio
• Low elongation to break
• Good heat & flame resistance
• Good chemical resistance
• High cut resistance
• Excellent ballistic properties
Disadvantages
• Kevlar® suffers from UV degradation, which
causes strength loss and discoloration
• Propensity to absorb moisture, up to 5%
moisture regain
• Poor compressive force properties
FIBER-LINE® PROCESS FOR KEVLAR®
• Coating
• Twisting
• Extrusion
• Pultrusion
• Precision Winding
FIBER-LINE® KEVLAR® PRODUCTS
• Ripcords
• Strength Members
• Industrial Fabric Yarn
• Swellcoat® Binder Yarn in between strength
members and industrial fabric yarn
• Belt & Hose Reinforcement Yarn
• Packing Yarn
• Wire Harness Yarn
• Synthetic Wire Rope
• Kevlar® Distribution Program
Property UOM Value
Breaking Tenacity g/d 23.6
Specific Gravity Ratio 1.44
Elongation @ Break % 2.5
Tensile Modulus g/d 885
Moisture Regain* % 5.0
Creep** %
Through this program, we hope to introduce busi-
nesses of all sizes to the benefit of Aramid fibers.
https://www.avient.com/company/sustainability/sustainability-report/products/circular-economy
To enable sustainability for our customers, key areas of focus include advancing a circular economy, reducing carbon footprint and developing alternative materials.
Organization for Economic Co-operation and Development (OECD) and National Geographic
Developing More Sustainable Alternatives