https://www.avient.com/sites/default/files/2024-03/2024 Proxy Statement %28Filed%29.pdf
5) Adjusted EPS is calculated as net income, adjusted for special items (as noted in Appendix A), divided by weighted-average diluted shares.
PROXY STATEMENT 2023 | Annual Meeting of Shareholders 73
Net Income versus Compensation Actually Paid
First PEO Second PEO Average Non-PEO Named Executive Officer Net Income
Net Income versus Compensation Actually Paid.
A-1
December 31, 2022
Reconciliation of Pro Forma Adjusted Earnings per Share
Net income from continuing operations attributable to Avient shareholders $ 82.8
Special items, after tax 116.2
Amortization expense, after-tax 49.0
Adjusted net income from continuing operations excluding special items 248.0
APM pro forma adjustments to net income from continuing operations* 13.6
APM amortization expense, after tax* 19.1
Pro forma adjusted net income from continuing operations attributable to Avient shareholders $ 280.7
Weighted average diluted shares 92.2
Pro forma adjusted EPS - excluding special items $ 3.04
(*) Pro forma adjustment for 2022 is for the 8 months January - August 2022 APM results (period before Avient ownership) including the impacts of debt
financing and prepayments on net income from continuing operations.
https://www.avient.com/sites/default/files/2022-06/Complet REC Technical Bulletin.pdf
The PCR content is derived from end-of-life fishing
nets that could otherwise contribute to ocean
plastic.
https://www.avient.com/sites/default/files/2022-07/Avient 2021 Sustainability Report 7-26-22.pdf
Avient is excited to reaffirm our commitment this year,” said Bob
Patterson, Chairman, President and CEO, Avient Corporation, “We remain focused on these SDGs and aligning our activities accordingly.”
The importance of building diverse and inclusive organizations has never
been more important—in business and in our world,” said Bob Patterson,
Chairman, President and CEO, Avient.
Year Ended
December 31, 2020
Year Ended
December 31, 2019
Reconciliation of Pro Forma
Adjusted Earnings per Share Avient
Special
Items(1)
Adjusted
Avient
Clariant MB
Pro Forma
Adjustments(2)
Pro Forma
Adjusted Avient Avient
Special
Items(1)
Adjusted
Avient
Clariant MB
Pro Forma
Adjustments(2)
Pro Forma
Adjusted Avient
Sales $ 3,242.1 $ — $ 3,242.1 $ 540.4 $ 3,782.5 $ 2,862.7 $ — $ 2,862.7 $ 1,118.6 $ 3,981.3
Operating income $ 189.3 $ 73.7 $ 263.0 $ 45.0 $ 308.0 $ 156.8 $ 71.7 $ 228.5 $ 72.9 $ 301.4
Interest expense, net (74.6) 10.1 (64.5) (18.1) (82.6) (59.5) — (59.5) (33.4) (92.9)
Other income, net 24.3 (17.6) 6.7 — 6.7 12.1 (10.0) 2.1 — 2.1
Income taxes (5.2) (41.4) (46.6) (6.2) (52.8) (33.7) (5.9) (39.6) (9.1) (48.7)
Net income attributable to
noncontrolling interests (1.8) — (1.8) — (1.8) (0.2) — (0.2) — (0.2)
Net income from continuing operations
attributable to Avient shareholders
$ 132.0 $ 24.8 $ 156.8 $ 20.7 $ 177.5 $ 75.5 $ 55.8 $ 131.3 $ 30.4 $ 161.7
Weighted average diluted shares 90.6 77.7
Impact to diluted shares from January 2020 equity offering 1.5 15.3
Pro forma weighted average diluted shares 92.1 93.0
Pro forma adjusted EPS $ 1.93 $ 1.74
Year Ended
December 31, 2021
Reconciliation of Adjusted
Earnings per Share: Avient Special Items(1)
Adjusted
Avient
Sales $ 4,818.8 $ — $ 4,818.8
Operating income $ 381.2 $ 47.8 $ 429.0
Interest expense, net (75.3) — (75.3)
Other income, net (1.3) 9.3 8.0
Income taxes (74.0) (7.1) (81.1)
Net income attributable to
noncontrolling interests 0.2 — 0.2
Net income from continuing
operations attributable to Avient
shareholders $ 230.8 $ 50.0 $ 280.8
Weighted average diluted shares 92.1
Adjusted EPS - excluding special items $ 3.05
(1) Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of
operations; debt extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee
separation costs resulting from personnel reduction programs, plant realignment costs, executive separation agreements;
asset impairments; settlement gains or losses and mark-to-market adjustments associated with actuarial gains and losses
on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties and related
insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of
operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or disposals;
results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the
commencement of the performance period; one-time, non-recurring items; and the effect of changes in accounting
principles or other such laws or provisions affecting reported results
https://www.avient.com/sites/default/files/2023-03/2023 Avient Bookmarked Proxy Statement - FINAL.pdf
5) Adjusted EPS is calculated as net income, adjusted for special items (as noted in Appendix A), divided by weighted-average diluted shares.
A-1
December 31,
Reconciliation of Pro Forma Adjusted Earnings per Share 2022 2021
Net (loss) income from continuing operations attributable to Avient shareholders $ 82.8 $ 151.8
Special items, after tax 116.2 50.0
Amortization expense, after-tax 49.0 44.9
Adjusted net income from continuing operations excluding special items 248.0 246.7
APM pro forma adjustments to net income from continuing operations* 13.6 9.9
APM amortization expense, after tax* 19.1 21.1
Pro forma adjusted net income from continuing operations attributable to Avient shareholders $ 280.7 $ 277.7
Weighted average diluted shares 92.2 92.1
Pro forma adjusted EPS - excluding special items $ 3.04 $ 3.02
(*) Pro forma adjustment for 2022 is for the 8 months January - August 2022 APM results (period before Avient ownership) including the impacts of debt
financing and prepayments on net income from continuing operations. 2021 pro forma includes the full 12 month impact for the year ended December
31, 2021.
Free Cash Flow Calculation
Cash provided by operating activities $ 398.4
Capital expenditures (105.5)
Free Cash Flow $ 292.9
Reconciliation of Net Debt
Short-term and current portion of long term debt $ 2.2
Total long-term debt, net 2,176.7
Unamortized discount and debt issuance cost 37.4
Total debt $ 2.216.3
Cash (641.1)
Net taxes due from sale of business 105.0
Adjusted cash $ (536.1)
Net debt $ 1,680.2
Reconciliation to EBITDA and Adjusted EBITDA
Net (loss) income from continuing operations – GAAP 83.1
Income tax (benefit) expense (19.3)
Interest expense 119.8
Depreciation and amortization from continuing operations 162.5
EBITDA $ 346.1
Special items, before income tax 194.0
Interest expense included in special items (26.0)
Depreciation and amortization included in special items (5.5)
APM pro forma adjustments - 8 months 2022* 83.1
Adjusted EBITDA $ 591.7
(*) Pro forma adjustment for January - August 2022 APM results (period before Avient ownership).
https://www.avient.com/sites/default/files/2021-09/avient2020sustainabilityreport-9-2-21.pdf
The importance of building diverse and inclusive organizations has never been more
important—in business and in our world,” said Bob Patterson, Chairman, President
and CEO, Avient.
Long-lasting insecticidal
treated nets (LLINs) are a form of individual protection to fight malaria,
but insecticide resistance threatens to undermine net effectiveness.
Avient and IVCC created a new medium scale
masterbatch production laboratory in China to support research
and development into non-registered novel active ingredients for
incorporation into long lasting treated nets.
https://www.avient.com/sites/default/files/2020-03/2020proxy.pdf
Kunkle
APPENDIX A
2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016** 2017** 2018** 2018*** 2019***
Net income from continuing operations
attributable to PolyOne common
shareholders $106.7 $152.5 $153.4 $ 53.3 $ 94.0 $ 78.0 $144.6 $166.4 $173.5 $161.1 $ 87.7 $ 75.5
Joint venture equity earnings, after tax (19.0) (14.7) (3.7) — — — — — — — — —
Special items, before tax(1) (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 23.8 32.9 59.5 58.7 61.7
Special items, tax adjustments(1) (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (15.9) (24.8) (25.3) (25.1) (5.9)
Adjusted net income from continuing Adjusted net income from continuing
operations attributable to PolyOne
common shareholders $ 11.8 $ 65.3 $ 76.9 $ 89.5 $126.6 $168.5 $173.5 $174.3 $181.6 $195.3 $121.3 $131.3
Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1 80.4 80.4 77.7
Adjusted EPS attributable to PolyOneAdjusted EPS attributable to PolyOne
common shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.06 $ 2.21 $ 2.43 $ 1.51 $ 1.69
Year Ended
December 31,
Reconciliation to Consolidated Statements of Income 2019 2018
Operating income - GAAP $ 156.8 $ 178.6
Special items in operating income (1) 71.7 42.4
Operating income adjusted $ 228.5 $ 221.0
APPENDIX B
POLYONE CORPORATION
2020 EQUITY AND INCENTIVE COMPENSATION PLAN
1.
https://www.avient.com/sites/default/files/resources/Innovation%2520Day%2520-%2520May%25202014.pdf
The non-GAAP financial measures
include: adjusted EPS, earnings before interest, tax, depreciation and amortization
(EBITDA), adjusted EBITDA, net debt, Specialty platform operating income, Specialty
platform gross margin percentage, adjusted operating income, return on invested
capital, net debt/ EBITDA, and the exclusion of corporate charges in certain
calculations.
Richardson
Executive Vice President, Chief Financial Officer
PolyOne Corporation Page 15
Track Record of Accelerated Growth
Total Revenue Adjusted EPS Adjusted EBITDA
$2,061
$2,506
$2,709
$2,861
$3,771
2009 2010 2011 2012 2013
($ in millions, except EPS )
$105
$179
$202
$255
$344
2009 2010 2011 2012 2013
$0.13
$0.68
$0.82
$1.00
$1.31
2009 2010 2011 2012 2013
PolyOne Corporation Page 16
$0.31
$0.44
$0.20
$0.30
$0.40
Q1 2013 Q1 2014
Adjusted EPS
$42
$60
$20
$40
$60
Q1 2013 Q1 2014
Specialty Operating Income
($ millions)
Q1 2014 Financial Highlights
Growth momentum accelerates
driven by specialty platform
Specialty segments and
Distribution achieve record results
All segments increase operating
income compared to prior year
Revenue grew 25% versus
Q1 2013
+43%
+42%
$57
$79
$30
$60
$90
Q1 2013 Q1 2014
Adjusted Operating Income
($ millions)
+39%
PolyOne Corporation Page 17
Commitment to Operational Excellence
81%
96%
2006 2013
16.2%
10.9%
2006 2013
On-Time Delivery
Working Capital % of Sales
5.0%
31.0%
2006 2013
Percent of Associates Trained in LSS
Three consecutive years – CFO Magazine
Best Working Capital Management
Program in the chemical industry
World’s Best Business
Process Excellence
Program in 2012*
95 certified Black Belts
211 certified Green Belts
422 Project Leaders
World’s Best “Start-up
Program” for Lean Six Sigma
Deployment in 2009*
*Both awards received from International Quality and Productivity Center
PolyOne Corporation Page 18
Debt Maturities & Pension Funding – 3/31/14
Net Debt / EBITDA* = 1.9x
$48
$317
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Debt Maturities
As of March 31, 2014
($ millions)
Coupon Rates: 7.500% 7.375% 5.250%
*TTM 12/31/2013
** includes US-qualified pension plans only
60%
100%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2014
Pension Funding**
As of March 31, 2014
PolyOne Corporation Page 19
Free Cash Flow and Strong Balance Sheet
Fund Investment / Shareholder Return
$0.16
$0.20
$0.24
$0.32
$0.10
$0.20
$0.30
$0.40
2011 2012 2013 2014
Annual Dividend
Expanding our sales, marketing,
and technical capabilities
Targets that expand our:
• Specialty offerings
• End market presence
• Geographic footprint
• Operating Margin
Synergy opportunities
Adjacent material solutions
Repurchased 1.4 million shares in
Q1 2014
Repurchased 6.4 million
shares since April 2013
13.6 million shares are
available for
repurchase under the
current authorization
Organic
Growth
Acquisitions
Share
Repurchases
Dividends
Investing in operational and
LSS initiatives (including
synergy capture)
Manufacturing alignment
PolyOne Corporation Page 20
3.07 3.05
1.81
1.45
1.82
1.54
0.85
3.15
1.17
1.69
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
0.91
PolyOne
Valuation Aspirations
PEG Ratio Comparison
Represents $38 of
share price upside
Avg = 1.96
PolyOne Corporation Page 21
Innovating for the Future
Dr.
https://www.avient.com/sites/default/files/2024-12/AVNT Investor Day 2024 Presentation.pdf
Free cash flow use
2020– 2024 est.
30%
37%
6%27%
Debt
paydown
Dividend
payments
Share
buybacks
M&A,
other
15% CAGR
Copyright © .
2024 62
Disciplined capital allocation
PRIORITIZATION AND PHILOSHOPY
Capex Expected annual spend between 3-5% of revenue to
support investment in organic growth
Dividends Increasing each year with underlying earnings growth
Debt pay down Target net debt to adjusted EBITDA less than 2.5x
Share repurchases Opportunistic buy backs
M&A De-emphasized in near term; complement organic growth strategy
with M&A over time, as needed
Copyright © .
2024 63
Avient is a compelling investment thesis
Ability to adapt & pivot to deliver results
highly motivated team with track record of
operational and commercial excellence
Global reach with local touch
customer-centric focus across continents and cultures
to serve locally and win globally
Innovation
differentiation by hybridizing technologies
to create platforms at scale
aligned to high growth market segments
and secular trends
MARGIN EXPANSION
and sustainable growth
ORGANIC GROWTH
complemented by M&A over time
as needed
Strong CASH GENERATION
and EXECUTION
Broad customer base and
COMPETITIVE ADVANTAGE
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Dollars in millions, except for per share data)
Below is a reconciliation of non-GAAP financial measures to their most directly comparable financial measures calculated and
presented in accordance with GAAP.
Year Ended December 31,
Reconciliation to EBITDA and Adjusted EBITDA: 2006 2023
Sales $ 2,622.4 $ 3,142.8
Net income from continuing operations – GAAP $ 133.5 $ 76.3
Income tax expense 29.7 11.0
Interest expense, net 63.1 115.3
Depreciation and amortization from continuing operations 57.1 188.8
EBITDA from continuing operations 283.4 391.4
Special items, before tax (34.0) 114.6
Interest expense included in special items — (2.3)
Depreciation and amortization included in special items — (1.9)
JV - equity income (107.0) —
Adjusted EBITDA $ 142.4 $ 501.8
Adjusted EBITDA as a percent of sales 5.4 % 16.0 %
Avient Investor Day_Dec 2024_Wednesday morning edition.pdf
Investor Day - Dec24 - Non-GAAP v4 12.03.24 545PM.pdf
Attachment
https://www.avient.com/sites/default/files/resources/PolyOne%2520Proxy%2520Statement%25202016.pdf
Modest Net Debt to
Adjusted EBITDA ratio of 2.1x
(1) Adjusted Earnings Per Share, Adjusted Operating Income, Adjusted EBITDA and Net Debt to Adjusted EBITDA
reported in this proxy statement differ from what is reported under United States Generally Accepted Accounting
Principles (“GAAP”).
Revenue represents business unit sales or total Company net trade sales to third parties
Year Ended Year Ended
December 31, 2015 December 31, 2014
Reconciliation to Condensed Consolidated Statements of
Income $ EPS $ EPS
Net income from continuing operations attributable to PolyOne
shareholders $ 144.6 $ 1.63 $ 78.0 $ 0.83
Special items, after tax (1), (2) 28.9 0.33 90.5 0.97
Adjusted net income / EPS – excluding special items $ 173.5 $ 1.96 $ 168.5 $ 1.80
Year Ended Year Ended
December 31, 2013 December 31, 2012
Reconciliation to Condensed Consolidated Statements of
Income $ EPS $ EPS
Net income from continuing operations attributable to PolyOne
shareholders $ 94.0 $ 0.97 $ 53.3 $ 0.59
Special items, after tax (1), (2) 32.6 0.34 36.2 0.41
Adjusted net income / EPS – excluding special items $ 126.6 $ 1.31 $ 89.5 $ 1.00
Year Ended
December 31, 2011
Reconciliation to Condensed Consolidated Statements of
Income $ EPS
Net income from continuing operations attributable to PolyOne
shareholders
$ 153.4 $ 1.63
Special items, after tax (1), (2) (72.8) (0.77)
SunBelt equity earnings, after tax (3.7) (0.04)
Adjusted net income / EPS – excluding special items and Sunbelt
equity earnings
$
76.9
$
0.82
(1) Special items are a non-GAAP financial measure and are used to determine adjusted earnings.
https://www.avient.com/sites/default/files/2025-03/2025 Proxy Statement.pdf
5) Adjusted EPS is calculated as net income, adjusted for special items (as noted in Appendix A), divided by weighted-average diluted
shares.
Net Income versus Compensation Actually Paid
First PEO Second PEO Average Non-PEO Named Executive Officer Net Income
Net Income versus Compensation Actually Paid.
Net income includes the income from discontinued
operations, and for 2022 includes a one time $550 million gain on the sale of our Distribution business.