https://www.avient.com/sites/default/files/2022-07/Avient Announces Second Quarter 2022 Results_1.pdf
In
addition, we embarked on a formal process to explore the sale of our Distribution business and
are encouraged by the level of interest we have received from several potential buyers.”
Three Months Ended
June 30,
Six Months Ended
June 30,
2022 2021 2022 2021
Sales:
Color, Additives and Inks $ 649.1 $ 624.4 $ 1,298.6 $ 1,233.7
Specialty Engineered Materials 243.9 240.6 488.6 457.1
Distribution 443.2 404.4 876.1 767.1
Corporate and eliminations (33.8) (34.2) (67.1) (60.4)
Sales $ 1,302.4 $ 1,235.2 $ 2,596.2 $ 2,397.5
Gross margin:
Color, Additives and Inks $ 193.4 $ 193.4 $ 385.5 $ 390.9
Specialty Engineered Materials 67.4 69.6 137.2 134.3
Distribution 42.9 40.1 82.2 79.4
Corporate and eliminations 0.1 (14.4) (7.4) (13.5)
Gross margin $ 303.8 $ 288.7 $ 597.5 $ 591.1
Selling and administrative expense:
Color, Additives and Inks $ 99.8 $ 107.1 $ 197.4 $ 215.8
Specialty Engineered Materials 30.8 32.3 60.9 62.8
Distribution 15.8 16.4 30.9 31.7
Corporate and eliminations 27.9 24.8 50.2 52.3
Selling and administrative expense $ 174.3 $ 180.6 $ 339.4 $ 362.6
Operating income:
Color, Additives and Inks $ 93.6 $ 86.3 $ 188.1 $ 175.1
Specialty Engineered Materials 36.6 37.3 76.3 71.5
Distribution 27.1 23.7 51.3 47.7
Corporate and eliminations (27.8) (39.2) (57.6) (65.8)
Operating income $ 129.5 $ 108.1 $ 258.1 $ 228.5
Earnings before interest, taxes, depreciation and
amortization (EBITDA):
Color, Additives and Inks $ 119.5 $ 111.6 $ 240.0 $ 227.7
Specialty Engineered Materials 44.3 45.4 91.8 87.4
Distribution 27.3 23.9 51.7 48.1
Corporate and eliminations (25.1) (39.0) (51.1) (63.8)
Other income, net 1.4 1.2 0.8 2.7
EBITDA $ 167.4 $ 143.1 $ 333.2 $ 302.1
12
Attachment 7
Avient Corporation
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(In millions, except per share data)
Senior management uses gross margin before special items and operating income before special items to assess performance
and allocate resources because senior management believes that these measures are useful in understanding current profitability
levels and how it may serve as a basis for future performance.
In addition, operating income before the effect of special items is
a component of Avient annual and long-term employee incentive plans and is used in debt covenant computations.
https://www.avient.com/sites/default/files/2022-01/Rejoin_PCR_Colorant_MB_Product_Bulletin_CN1.pdf
https://www.avient.com/sites/default/files/2024-08/Cesa Non-PFAS Blown Film Snapshot.pdf
FILM
MANUFACTURER
B L O W N F I L M
• Maintain comparable performance to PFAS additives
• Meet regulatory compliance
• Eliminate melt fracture and reduce die buildup
• Increase productivity by reducing product changeover time
• Provided a non-PFAS formulation that met
all performance and regulatory requirements
and did not interact with other additives
• Helped eliminate melt fracture with a quick
time to clear of under forty minutes
• Delivered technical support, including
comprehensive testing on various
chemistries and polymers
• Attained high throughput with a minimal
amount of additive
Cesa™ Non-PFAS Process Aid for Extrusion
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/products/polymer-additives/processing-enhancement-additives/cesa-non-pfas-process-aid-extrusion
https://www.avient.com/sites/default/files/2020-12/excelite-1-page-case-study-grab-handle.pdf
Excelite OnePager Grab Handle (2)
TIER 1 MOLDER
A U T O M O T I V E G R A B H A N D L E
• Reduce production cycle times
• Achieve processing consistency in chemical foaming
additive (CFA) performance
• Control dimensional stability and reduce production scrap
rates
• Lower conversion costs
• Improved cycle time by 20%
• Achieved additional 2% density reduction
• Resulted in a finer cell structure with a higher cell
density, significantly improving dispersion and
dimensional stability
• Maintained Class A finish
• Reduced CFA use rate by 80%
Excelite™ IM Chemical Foaming Additives
KEY REQUIREMENTS*
WHY AVIENT?
https://www.avient.com/products/polymer-additives/foaming-agents/colormatrix-excelite-chemical-foaming-additives
https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Earnings Presentation_For_Website_w_non-GAAP_5_6_1.pdf
Q1 2023
(TOTAL COMPANY)
$846 $829
$134
$143
17.3%
(in millions)
$0.63
$0.76
Adjusted EPS
(in millions)
+ 7% + 21%
Sales Adjusted EBITDA Adjusted EPS
6
- 2%
15.8%
+150 bps
Q1 2024 SEGMENT PERFORMANCE
(COLORS, ADDITIVES & INKS)
$537
$515
$91
$97
18.8%
(in millions) (in millions)
+ 7%
7
- 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%
8
+ 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)
9
$ 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 I DAN 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
11
Q2 2024: Adjusted EPS of $0.71
CE O “ TO P O F MI N D”
FO CU S ARE AS
AREAS OF FOCUS
13
+7%
Drive Profitable Organic
Top-Line Growth with
Margin Expansion
Amplify Innovation Build Leadership & Talent
Pipeline
AP P E N DI X
16
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%
18
(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
19
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 BILLION
52%
35%
20
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)
21
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.
In addition, operating
income before the effect of special items is a component of Avient’s annual incentive plans and is used in debt covenant
computations.
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 %
2
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
3
AVNT Q1 2024 Earnings Presentation_For_Website_w_non-GAAP.pdf
Avient corporation�first quarter 2024 results and 2024 financial guidance
DISCLAIMER
Slide Number 3
Regional demand trends-total company�Q1 Sales vs PY (Excluding FX)
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
Slide Number 15
Slide Number 16
Slide Number 17
2023 segment, end market and Geography
Color, Additives & Inks
Specialty Engineered Materials
Slide Number 21
IR Deck - AVNT-2024.03.31 5.06 11AM v2 (002).pdf
Attachment
https://www.avient.com/sites/default/files/2024-12/Terms and Conditions of Sale for Japan %28English and Japanese Translation%29.pdf
Seller reserves to itself all
applicable duty drawback allowances, and
Buyer shall provide assistance in connection
with Seller’s application for the same.
10.
No modification or addition to the contract shall
occur by the acknowledgment or acceptance by
Seller of a purchase order, acknowledgment,
release or other form submitted by Buyer
containing additional or different terms or
conditions.
19.
Applicable Law and Jurisdiction.
https://www.avient.com/content/services-inquiry-form
In addition we may use this information to communicate with you about products, services and events related to Avient in accordance with our Privacy Policy
https://www.avient.com/resources/safety-data-sheets?page=5193
LIQUID ADDITIVE TONER VIOLET 488-10225-1
https://www.avient.com/sites/default/files/2022-10/Potable Water Tanks Mini Case Study.pdf
WATER STORAGE
MANUFACTURER
P O T A B L E W A T E R T A N K S
• Diminish growth of microbials in water tanks to provide
differentiating feature for landmark product launch
• Prevent undesirable odor associated with bacteria and
fungal growth on the product’s polymer surface
• Meet FDA, NSF, and UL regulatory requirements
• Formulated a multi-polymer solution that
ensured microbial and fungal growth were
diminished while preserving polymer
performance
• Utilized antimicrobials to mitigate the causal
effect of undesirable tastes and odors
• Enabled customer to meet requirements
through Avient’s knowledge and expertise of
regulatory protocols
Cesa™ WithStand™ Antimicrobial Additives
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/products/polymer-additives/performance-enhancement-additives/withstand-antimicrobial-additives
https://www.avient.com/sites/default/files/2025-05/Avient Announces First Quarter 2025 Results_0.pdf
Webcast Details
Avient will provide additional details on its 2025 first quarter and its 2025 full year outlook during
its webcast scheduled for 8:00 a.m.
Our expanding portfolio of offerings includes colorants,
advanced composites, functional additives, engineered materials, and Dyneema®, the world’s
strongest fiber™.
In addition, operating income before the effect of special items is a component of Avient's annual
incentive plans and is used in debt covenant computations.