https://www.avient.com/sites/default/files/2020-10/investing-in-avient.pdf
FUTURE GROWTH IN EXCESS
OF GDP IS DRIVEN BY:
Our company is positioned to sustainably grow at a rate that
exceeds GDP.
As a result, revenue from sustainable solutions has increased
at an organic compounded annual growth rate of 9% from 2016-2019.
PEER COMPARISONS
16
2 3 2 3 3 3
6
3 4 4 4 4 5 5 6 6
7
8
9
23
nt
nt
(
xc
l.
https://www.avient.com/sites/default/files/2022-03/Avient 2021 Annual Report.pdf
Hickory, North Carolina 8.
La Porte, Texas
8.
Kutno, Poland 8.
https://www.avient.com/news/polyone-features-total-portfolio-healthcare-polymers-and-colorants-mdm-west-2017
WithStand™ Antimicrobial Technology:
• Additive that helps hospitals in non-acute care settings where minor lapses in cleaning protocol can lead to medical device performance problems
• Proven performance in engineered medical grade polymers with efficacy against primary known antibiotic-resistant organisms
OnCap™ Lasermarking Additive:
• Enables permanent alphanumeric character, graphic or barcode information for identification that does not fade over time for Unique Device Identification (UDI)
• Provides consistent and efficient marking without altering, damaging or changing electrical or mechanical properties in sensitive medical devices
OnColor™ HC and HC Plus Colorants:
• Regulatory compliant and biocompatible solid colorants
• Enable confidence that brand color choice will perform as expected for regulatory requirements, performance, and conditions of use
Royalite™ Fire-Rated ABS Sheet:
• Helps meet stringent flame rating requirements while creating thermoformed housings and components
• Aesthetically appealing and easily machined and finished
https://www.avient.com/products/advanced-composites/composite-ballistic-protection/glasarmor-ballistic-resistant-panels
UL Rating
Customized solutions to meet UL 752 Level 4 – 8 available.
Fire-rated for 1 hour per ASTM E119-09c
https://www.avient.com/sites/default/files/resources/AVNT Fermium Conference - May 2023 w NonGAAP Recs.pdf
When showing constant dollar figures on GAAP and non-GAAP financial measures, the foreign exchange impact is calculated by using current foreign exchange rates and applying them to the prior period results.
National Defense
budget of $842 billion submitted to Congress
in Q1 2023
• European NATO members annual defense
spend expected to increase by up to 20%
Dyneema® is the world’s strongest fiber™
One of the highest strength to weight
ratios of any material on Earth
Direct relationships with industry leading
armor manufacturers
Resistant to most chemicals, UV, and
moisture to handle any environment
Avient Confidential 17
DEFENSE
Source: US Department of Defense, defense.gov, NATO17
Source:
TRANSPORTATION
• Increased EPA regulations requiring
improved fuel efficiency, enabled in part by
lower-weight vehicles
• Automakers preparing for 2/3 of U.S.
vehicles to be 100% electric by 2032
Lightweight panels that establish both
strength and stiffness resulting in
decreased energy usage, lower emissions
Long-lasting Color applications to resist
UV exposure, temperature fluctuations
and exceed the stylistic requirements of
global automakers
18
$130
$530
$0.60
$2.40
2023 GUIDANCE
19
Sales Adjusted EBITDA
$845
$3,400
Adjusted EPS
(in millions) (in millions)
CASH FLOW / LEVERAGE
20
• Maintaining free cash flow
and leverage guidance from
February earnings call
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Restructuring actions to
streamline operations and
improve profitability,
primarily in Europe
($ millions) 2023E
Cash Flow from Operating Activities 350$
Less:
Run-Rate CapEx (110)
CapEx for IT System Upgrade (25)
CapEx for Restructuring (15)
Total CapEx (150)
Free Cash Flow 200$
Adjusted EBITDA 530$
Net Debt / Adjusted EBITDA 2.9x
LONG-TERM REVENUE GROWTH DRIVERS
Growth Drivers
Long-Term
Growth Rate
Sustainable Solutions 8–12%
Healthcare 8–10%
Composites 10%
Asia / LATAM 5%
Other (GDP growth) 2–3%
Avient 6.5%
21
Sustainable
Solutions
32%
Asia / LATAM
Composites
Other (GDP
Growth)
39%
• Virtual presentation to be held
September 20, 2023
• The company will be
conducting an investor-focused
presentation around our
sustainability solutions portfolio
Avient Confidential 22
SUSTAINABILITY
INVESTOR DAY
22
$340M
$405M
$455M
$550M
$790M
$915M
2016 2017 2018 2019 2020PF** 2021 2022PF***
SUSTAINABILITY FOR A BETTER TOMORROW
Revenue From Sustainable Solutions* 2016-2022
($ in millions)
Organic Future Growth Revenue Assumptions From Sustainable Solutions: 8 - 12%
23
*Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”)
**2020 is Pro Forma to include full year of the Clariant Color business
***2022 is Pro Forma for the acquisition of Avient Protective Materials and the divestiture of Distribution
$1,175M
Lightweighting
Eco-Conscious
Recycle Solutions
VOC Reduction
Sustainable Infrastructure
Human Health & Safety
Reduced Energy Use
Bio-polymers
SUSTAINABILITY NEEDS BY MARKET
B&C
• Eco-Conscious
• Carbon footprint
• Resource
conservation
• Carbon footprint
• Bio based content
• Eco-Conscious
Automotive
• Light weighting
• Recycled Content
• VOC reduction
• Recycle Solutions
• Carbon Footprint
Packaging
• Recycle Solutions
• Food waste
reduction
Common Theme: CO2 Emission Goals
Increasing Single-Use Plastic Regulation
24
INVESTING
IN INNOVATION
S U S T A I N A B I L I T Y P O R T F O L I O
25
AP P EN D IX
28
RAW MATERIAL 2022 ANNUAL PURCHASES
Performance
Additives
Pigments
12%
TiO2
Dyestuffs
2%
Polyethylene
Nylon
Polypropylene
Styrenic Block
Copolymer
Other Raw
Materials
33%
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
• Cost inflation
decelerating,
particularly for
hydrocarbon-based
raw materials
2022 pro forma results for the acquisition of Avient Protective Materials
SEGMENT DATA
U.S. & Canada
40%
37%
18%
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
24%
Building and
END MARKET REVENUE
$2,355M $402M
$1,300M $272M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$592M$3,653M
(1)
9%
30
(1) Total company sales and adjusted EBITDA of $3,653M and $592M, respectively, include intercompany sales eliminations and corporate costs
C O L O R , A D D I T I V E S & I N K S
2022 REVENUE | $2 .4 B ILL ION
34%
38%
END MARKET REGION
31
34%
21%
Building &
1% Energy
2%
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
2022 PRO FORMA REVENUE | $1 .3 B ILL ION
END MARKET
52%
35%
REGION
32
19%
8%Industrial
9% Defense
Building &
32%
27%
14%
Building &
3%
1% Defense
1%
(18% of sales)
9%
2022 PROFORMA AVIENT REGIONAL SALES
BY END MARKET
27%
14%
17%
Building &
(37% of sales)Transportation
24%
12%
Building &
US &
Canada
(40% of sales)
56%
23%
Building &
1%
LATAM
(5% of sales)
3%
33
PEER COMPARISONS
AVIENT IS ASSET LIGHT
Capex / Revenue
2023E (%)
Avient Specialty
Other Specialty /
Note: Avient reflects 2023 estimated revenue of $3,400 and estimated run-rate CAPEX of $110M.
35
4 4
5 5 5
6
7
9
FREE CASH FLOW CONVERSION
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
Avient reflects 2023 adjusted EBITDA guidance of $530M and estimated run-rate CAPEX of $110M.
https://www.avient.com/sites/default/files/2020-08/fiber-solutions-business-unit-overview-2020.pdf
With a FlexCart
system, it is possible
to achieve continuous,
consistent and accurate
dosing—even at very
low addition rates.
COMMITMENT TO RECORD RETENTION
Formulations and yarn samples of every lot of production are archived
and retained for 2 to 5 years to ensure traceability.
TECHNICAL ANALYSES
• DSC: Thermal analyses to characterize polymers, additives
and colorants
• TGA: Thermogravimetric analysis to evaluate thermal stability,
plus inorganic pigment, and carbon black content in the
Masterbatch
• FT-IR: Infrared spectroscopy for the analysis of raw materials
• Incineration oven to determine inorganic content
• Melt Flow Tester to measure the Melt Flow Rate of MBs
and Polymers
• Filter test to measure the dispersion quality and aggregate
content of materials contained in the polymer matrix
• Intrinsic/Relative Viscosity of Masterbatches and polymers
• Moisture content in the liquid colorants, MBs and polymers
• UV-Visible spectrometry: instrumental evaluation of the color
on yarn to perform quality control, color matchings and recipes
adjustments
• Yarn testing to evaluate mechanical properties, abrasion,
dry heat, rubbing and other characteristics
• Our pilot spinning lines have state-of-the-art take-up winders
that spin up to 4,500 meters/minute.
https://www.avient.com/sites/default/files/2022-11/Packaging Anti-fog Whitepaper.pdf
In addition, laboratory
tests indicate that these additives produce anti-
fog properties at a slightly faster rate than other
additive solutions.
Tap water was put in a beaker, the top of the beaker
was covered with a sample of the test film, and the
beaker was put in a refrigerator at 4°C (39°F).
The
appearance of the film was observed after one hour
and then after four hours, and visibility through
the film is given a rating from A (zero visibility due
to fogging of the inside surface of the film) to E
(completely transparent).
https://www.avient.com/sites/default/files/2024-12/AVNT Investor Day 2024 Presentation.pdf
You are
advised to consult any further disclosures we make on related subjects in our reports on Form 10-Q, 8-K and 10-K that we provide to the Securities and Exchange Commission.
Top line growth with
EBITDA margin expansion
Building the Avient
of the future
Incentive plans
aligned to strategy
...building upon our foundational strengths
Copyright © .
2024 56
….while enabling a sustainable world
Enabling customers to advance
the circular economy
Solutions to increase recycled content
and minimize plastic waste
Shrinking carbon footprint and
decreasing emissions
Solutions to reduce weight and
energy consumption
Making our planet
a better place for all
Solutions to preserve and protect
natural resources and human life
ENABLERS AND OUTCOMES
Copyright © .
2024 57
...and doing our part
INDUSTRY
SUSTAINABILITY
STANDARDS
ESG *
RATINGS
PERFORMANCE
17th
INDUSTRY
SUSTAINABILITY
STANDARDS
ESG *
RATINGS
PERFORMANCE
17th
Copyright © .
2024 58
GDP +
1.
Moving up the value chain, and expanding addressable market size by
providing materials solutions in select and prioritized areas
MARKETS TECHNOLOGY CUSTOMER SCALE
+100
to
+200 bps
revenue growth
above GDP
Copyright © .
2024 59
Pathway to 20%+ adjusted EBITDA margins
• Organic volume growth and
SG&A efficiencies from prioritizing
resources across the company
• Increased sales in higher margin
growth platforms
Productivity • Manufacturing & sourcing efficiencies
• Footprint optimization
• Digital technologies
Avient margin expansion
+400bps
margin expansion 20%+
Strategic
objective
~16%
Current
adjusted
EBITDA
margin
+2%
+1%
+1%
Copyright © .
2024 60
Organic revenue growth with margin expansion
+100 to +200bps
above GDP
Organic revenue growth
LONG TERM FINANCIAL TARGETS
Copyright © .
2024 61
History of balanced capital deployment
.1
6
.2
0 $0
.2
6 $0
.3
4 $0
.4
.5
0 $0
.5
8
.7
.7
9
.8
.8
8 $0
.9
6
0
8
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Dividend
$ per shareAdj.
https://www.avient.com/news/keep-deep-colors-vivid-outdoor-environments-geon-bold-vinyl-solutions
At NPE 2015 next week, samples of building products made with Geon Bold will be on display at PolyOne’s Customer Innovation Center (Room S230 BC).
https://www.avient.com/news/avient-earns-2023-refocus-sustainable-innovation-design-award-pcr-color-prediction-service
This can help shorten the time-to-launch of new product ranges, allowing fast and reliable checks prior to initiating sample development and simplifying the overall decision-making process for brand owners and technical colorists.