https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Investor Presentation_website w Non-GAAP.pdf
They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ
materially from those expressed in or implied by the forward-looking statements.
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.
For the same reasons, Avient is unable to address the probable significance of the unavailable information.
2
3
AVIENT OVERVIEW
OUR VISION: Creating specialized and sustainable materials solutions that transform customer challenges into opportunities, bringing new products to life for a better world
2023 Financial ResultsCompany Overview Revenue By:
9,300
Employees
102
Manufacturing
Sites
20,000+
Customers
Key Highlights
Premier formulator of specialized
and sustainable materials solutions
Asset-light business model, with
flexibility to adapt to customer needs
Best-in-class technology and service
(140+ PhDs / 2,500+ patents)
History of transformation through
successful M&A while consistently
returning cash to shareholders
Poised for continued future growth in
excess of GDP
$3.14B
Revenue
$2.36
Adjusted EPS
$502M
Adjusted EBITDA
16.0%
Adjusted EBITDA Margins
$186M
Adjusted Free Cash Flow
Over $1B in share
buybacks since 2011
Raised dividend for
13 consecutive years,
a 15% CAGR since
2011
U.S. &
Canada
EMEA
Asia
Latin America
64%
36%
Specialty
Engineered
Materials
Color
Additives
and Inks
41%
36%
18%
5%
7%
7%
23%
19%
9%
16%
10%
5% 4%
Defense
Healthcare
Packaging
Consumer
Building &
Construction
Industrial
Transportation
Energy Telecom
Geography
Segment
Industry
4
C R EAT I N G A WO R L D- C L A SS
S US TA I NA B L E ORG A N I ZAT I ON
1. 6% annualized long term sales
growth leveraging sustainable
solutions, composites, healthcare
and emerging regions
2.
https://www.avient.com/investor-center/news/polyone-names-dr-david-jarus-vice-president-research-and-development
NYSE: POL), a premier provider of specialized polymer materials, services and solutions, today announced that Dr.
and our customers over the last six years," Mr.
is a premier provider of specialized polymer materials, services and solutions.
https://www.avient.com/news/polyone-announces-25-increase-quarterly-dividend
PolyOne Corporation, with 2013 revenues of $3.8 billion, is a premier provider of specialized polymer materials, services and solutions.
The company is dedicated to serving customers in diverse industries around the globe, by creating value through collaboration, innovation and an unwavering commitment to excellence.
They are based on management's expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements.
https://www.avient.com/sites/default/files/2024-02/AVNT Q4 2023 Earnings Press Release.pdf
Customer destocking
was also less impactful during the quarter."
Conference
call participants in the question and answer session should pre-register using the link at
avient.com/investors, or here, to receive the dial-in numbers and personal PIN.
They are based on
management’s expectations that involve a number of business risks and uncertainties, any of
which could cause actual results to differ materially from those expressed in or implied by the
forward-looking statements.
https://www.avient.com/idea/three-ways-soft-touch-enhances-consumer-products
TPEs can be customized, depending on the application requirements, to provide surface feel ranging from grippy or tacky to smooth and silky.
Customers can keep a firm grasp of the sprayer to prevent dropping or twisting.
In another example, Brooks Sports chose a high-performance, customized TPE for a new running shoe cushioning technology.
https://www.avient.com/investor-center/news/polyone-announces-leadership-appointments
brings to customers and the full suite of innovative materials and services that enable their sustainability goals.
to expand their roles, serve our customers, and inspire our global associates," said
is a premier provider of specialized polymer materials, services and solutions.
https://www.avient.com/sites/default/files/2023-06/AVNT June IR Conferences w_Non GAAP Recs.pdf
They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those
expressed in or implied by the forward-looking statements.
Our customers value the
breadth of our solutions as we can tap into a broad array of
raw materials to solve their specific needs.
Our formulation
expertise supports material science decisions, while our
processing expertise guides customers to use the materials
properly.
https://www.avient.com/news/polyone-launches-first-ever-tpe-blue-jean-stain-resistance-phone-cases
Brands using silicone or TPU materials have been seeking an alternative for a number of reasons, including long sourcing lead times and manufacturing challenges for silicone and the inability of TPU to endure blue jeans contact without staining.
PolyOne Corporation, with 2017 revenues of $3.2 billion, is a premier provider of specialized polymer materials, services and solutions.
The company is dedicated to serving customers in diverse industries around the globe by creating value through collaboration, innovation and an unwavering commitment to excellence.
https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202012%2520-%2520Global%2520Color%252C%2520Additives%252C%2520and%2520Inks.pdf
Van Hulle
Page 53
United States
33%
Europe
47%
Canada
Asia
12%
Latin America
Eastern
Europe
2%
2011 Revenue: $0.7 Billion*2011 Revenue: $0.7 Billion* SolutionsSolutions
At a Glance
Global Color, Additives, and Inks
Building &
Construction
11%
Wire & Cable
15%
Consumer
6%
Packaging
36%
Industrial
10%
Misc.
7%
HealthCare
3%
Transportation
6%
Textiles
6%
Canada
1%
Latin America
5%
2011 Revenue by Industry Segment*2011 Revenue by Industry Segment*
*Pro forma for the acquisition of ColorMatrix
Expanding ProfitsExpanding Profits
1.7%
4.6%
5.1% 5.5%
7.1%
9.6%
12-16%
2006 2007 2008 2009 2010 2011PF 2015
Operating Income % of Sales
Target
Page 54
Value Proposition
• GCAI is a global leader enabling OEMs and converters to
profitably expand their business with customized color and
additive solutions
Transformation Highlights
• Mix improvement and value-based selling has
Value Proposition and Transformation Highlights
Global Color, Additives, and Inks
• Mix improvement and value-based selling has
driven nearly 800 basis points increase in
operating margin since 2006
• 2011 acquisition of ColorMatrix accelerates
innovation pipeline and expansion into
new markets
> $12B Addressable Market
Page 55
• Unbiased, solution-based culture selling value
� Customer-centric approach
� Economic value impact documented for customers
• Complete package, product range and
service offering
� Custom solutions for customers’ unique requirements
Key Differentiators
Global Color, Additives, and Inks
� Custom solutions for customers’ unique requirements
� Industry-leading service offering
• Coordinated global infrastructure
� Consistency in product and
customer service
� Supply-chain reliability
Page 56
From Volume
Commodity white dominated mix
To Value
Focus on specialty color
Global Film Customer
Volume Revenue Gross Margin $
Mix Transformation – Executing the Strategy
Global Color, Additives, and Inks
2010 2011 2010 2011 2010 2011
Page 57
Global Packaging Customer
Volume Sales Gross Margin $
From Volume
Commodity white dominated mix
To Value
Focus on specialty color
Mix Transformation – Executing the Strategy
Global Color, Additives, and Inks
2010 2011 2010 2011 2010 2011
Page 58
• OnColor™ HC Plus
� Applications: Medical devices
� Customer benefits: Brand enhancement, expanded market
opportunities, speed-to-market
• WithStand™ Antimicrobial Solutions
� Applications: Healthcare devices, appliances, kitchen utensils
Key Innovations
Global Color, Additives, and Inks
� Applications: Healthcare devices, appliances, kitchen utensils
and surfaces, children’s toys
� Customer benefits: Expanded market opportunities, extended
product life
• OnCap™ Antifog
� Applications: Food packaging
� Customer benefits: Extended shelf life, improved product
aesthetics, production efficiencies
Page 59
• $1.5 billion attractive, growing market
• Additives improve performance and
reduce cost through light-weighting, reduced
waste, faster cycle times, and extended shelf
life of finished product
• Aligned with megatrend of protecting
the environment
Market Opportunity
Shelf-life extension
Greater product
consistency
Weight reduction
Performance Additives
Global Color, Additives, and Inks
the environment
Leading Global Supplier of Additives In Fast Growing PET Market
consistency
Recyclability and
reduced carbon
footprint
Color and special
effects
Enhanced product
aesthetics
High heat resistance
4% 4%
8%
9% 9%
10%
11%
14%
Western
Europe
North
America
South
America
MEA Easter
Europe
Asia
Pacific
China India
PET 2008-13P CAGR
Page 60
HyGuardTM Oxygen Barrier System
• Applications: Beverage containers, food packaging
• Function: Active scavenging system for
ColorMatrix Innovation
Global Color, Additives, and Inks
• Function: Active scavenging system for
oxygen-barrier improvement
• Customer benefits: Extended shelf-life,
light-weight, recyclable
Page 61
ColorMatrix Innovation
Global Color, Additives, and Inks
ExceliteTM Foaming Agent
• Applications: Vinyl sheet for digital printing
• Function: Chemical foaming agent for
weight reduction
• Customer benefits: Increased product
quality, operational efficiencies
Page 62
Joule RHBTM Advanced Reheat Technology
• Applications: PET containers
• Function: Infra-red absorber for improved
ColorMatrix Innovation
Global Color, Additives, and Inks
• Function: Infra-red absorber for improved
• Customer benefits: Sustainability,
operational and energy savings
reheating efficiency
Page 63
• Accelerate customer development
pipeline with OnColor™ HC Plus
• Provide solutions addressing infection
concerns in healthcare facilities
Areas of Focus
Global Color, Additives, and Inks
$8.7
$20.0
Healthcare
2006 2011PFconcerns in healthcare facilities
• Help customers expand into new
markets with HyGuard™ technology
• Extend food shelf life and consumer
appeal with OnCap™ Anti-Fog $130.2
$268.0
2006 2011PF
Packaging
2006 2011PF
(Revenue in $ millions)
2006 2011PF
2006 2011PF
Page 64
Critical Imperatives and 2015 Goal
Global Color, Additives, and Inks
Critical Imperatives
• Integrate and leverage ColorMatrix technology and
customer relationships
• Identify and focus on specialty applications within our
target markets
• Accelerate global expansion and profitability
improvements in emerging markets, leveraging
success in U.S. and Europe
2015 Goal
• 12 - 16% return on sales
Page 65
Page 66
https://www.avient.com/sites/default/files/2023-08/EVSE Platform Brochure.pdf
Or, choose our Smartbatch™ Combination Colorants
& Additives that incorporate custom colors
with functional additives in a single, optimized
formulation.
Avient is a premier provider of specialized
and sustainable material solutions
and services that transform customer
challenges into opportunities.
Our broad
portfolio of product technologies and
services sets us apart in the EVSE market,
and our range of world-class services
includes:
Color Technology
Custom color design and special effects
to meet performance and aesthetic
requirements
Color & Design Services
Trend & color insights, and product
development assistance to optimize
design
Regulatory Coordination
Assistance with new product approvals
to reduce regulatory overhead and
minimize risk
Field Technical Service
Support for tool design, startup,
and production optimization to gain
manufacturing efficiencies
Sustainability Focus
Innovative materials and solutions to
help meet sustainability goals