https://www.avient.com/sites/default/files/2025-03/380605_AVIENT_2024AR_full_250325.pdf
Total company adjusted EBITDA margin
expanded to 16. 2% , and we generated adjusted
EPS of $2.66, up 13% from the prior year(1).
Our 2024 injury incident rate was an all-time
record low and reflective of the safest year in our
company’s history.
Last year, prominent third-party
ratings and ranking firms recognized our ongoing
improvements.
https://www.avient.com/sites/default/files/2021-02/avient-ir-presentation-goldman-sachs-and-morgan-stanley.pdf
Just a few months ago, we completed the acquisition of the Clariant Masterbatch
business, the largest acquisition in the 20-year history of our company.
Tenure of our relationships with multi-national OEMs exceeds
15 years.
Purchase price multiple rapidly
declining on strength of business and
synergy capture
(1) (1)
(1) (1) (1)
(1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
($ in millions)
13
SEM
CAI
Avient
• Composites and Outdoor High
Performance applications drove
positive mix within SEM
• Clariant Masterbatch synergy
realization under way and
expected to drive further margin
expansion in 2021
• Portfolio transformation to high
growth end markets with focus on
sustainable solutions megatrend
10.1%
11.8%
2019PF 2020
(1)
(1)
EBITDA MARGIN EXPANSION
Distribution
6.3% 6.0%
15.2%
17.6%
11.1%
12.1%
2019PF 2020PF
14.5%
19.8%
13.5%
16.1%
6.4% 6.3%
15.2%
16.2%
(1) (1)
Full YearQ4
(2)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(2) Total company reflects adjusted EBITDA margins
SPOTLIGHT: COMPOSITES
14
• SEM delivers a record year in 2020 – 13%
operating income growth and over 200 bps
in margin expansion year-over-year
• Prior investments in composites platform
and outdoor high performance applications
paying off, resulting in substantial growth
over the last two years
SEM
Operating
Income
(OI % of Sales)
($ in millions)
$(0.1) $(1.0)
$2.2
$19.1
$26.8
2016 2017 2018 2019 2020
Composites
Performance
(Operating Income)
$83.7
$94.4
2019 2020
(11.2%)
(13.3%)
0.1 0.1
0.2
0.5
0.6
0.7
0.8
0.9
0.9 1.0
11 12 13 14 15 16 17 18 19 20
$19
$160
$338
2011 2019 2020
0.16
0.20
0.26
0.34
0.42
0.50
0.58
0.72
0.79 0.81
0.85
11 12 13 14 15 16 17 18 19 20 21E
FREE CASH FLOW AND CAPITAL ALLOCATION
15
Free Cash Flow Dividends Share Repurchases Deleveraging
3.5x
2.7x
2019PF 2020PF
Growing Dividend Cumulative Buybacks Net Leverage
$
B
n
$
p
e
r
sh
a
re
Cash Generation
(1) (1)
~$1Bn
REPURCHASED
OVER LAST 10 YEARS
~$350MM
PAID OVER LAST 10 YEARS
~$338MM 2.7x
NET LEVERAGE
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
GREAT PLACE TO WORK!
https://www.avient.com/sites/default/files/2024-08/AVNT Second Quarter Earnings Press Release.pdf
Second quarter 2024 adjusted EPS was $0.76
compared to $0.63 in the prior year.
Khandpur added, "On a geographic basis, all regions delivered year-over-year organic sales
growth.
We anticipate continued year-over-year organic sales growth, with both segments
growing earnings."
https://www.avient.com/sites/default/files/2021-06/avient-ir-presentation-june-2021-w-non-gaap-recs_0.pdf
Tenure of our relationships with multi-national OEMs exceeds
15 years.
That’s Avient.
21,000+
CUSTOMERS
>75%
ARE CUSTOMIZED SOLUTIONS
TO UNIQUE SPECIFICATIONS
of
sales
5
In July 2020, we completed the acquisition of the Clariant Masterbatch business, the
largest acquisition in the 20-year history of our company.
This
innovation drives performance and is
reflective of consistent, strategic
investments in our portfolio…and
people.
2020 Pro forma $991 $86
Sustainable Solutions 15 11% 6
Healthcare 28 22% 6
Composites 6 10% 3
Growth in Emerging Regions 44 30% 10
Other 53 10% 7
Sub-total $1,137 15% $118
FX Impact 25 - 2
Synergies - - 11
Incentives, Travel, Other Employee Costs - - (8)
2021 Actual $1,162 17% $123
Q1 2021 ORGANIC SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
18
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Sales Growth Rate
Adjusted
Operating
Income$ millions
(1)
19
Electrical &
Electronics
Building &
Construction
Wire & Cable Transportation Industrial Healthcare Packaging Consumer
Q1 2020PF Q1 2021
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(2) Financial information is presented on a constant currency basis
(1,2)
(42% of total revenue)
(58% of total revenue)
Q1 END MARKET SALES PERFORMANCE
+17%
+14% +8%
+10%
+8% +22%
+5%
+24%
Q 2 A N D F U L L Y E A R
2 0 2 1 O U T L O O K
A S O F A P R I L 3 0 , 2 0 2 1 W E B C A S T
$69
$112
2020PF 2021E
$0.42
$0.80
2020PF 2021E
ORGANIC GROWTH PROJECTIONS – Q2
( T O TA L C O M PA N Y )
21
Sales Adjusted Operating Income
$870
$1,100
2020PF 2021E
+ 26%
Adjusted EPS
+ 62% + 90%
(in millions) (in millions)
(1) (1) (1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
FULL YEAR GUIDANCE INCREASED
22
Sales Adj.
https://www.avient.com/sites/default/files/2021-04/avient-q4-earnings-and-2021-outlook-website.pdf
Purchase price multiple rapidly
declining on strength of business and
synergy capture
(1) (1)
(1) (1) (1)
(1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
($ in millions)
7
SEM
CAI
Avient
• Composites and Outdoor High
Performance applications drove
positive mix within SEM
• Clariant Masterbatch synergy
realization under way and
expected to drive further margin
expansion in 2021
• Portfolio transformation to high
growth end markets with focus on
sustainable solutions megatrend
10.1%
11.8%
2019PF 2020
(1)
(1)
EBITDA MARGIN EXPANSION
Distribution
6.3% 6.0%
15.2%
17.6%
11.1%
12.1%
2019PF 2020PF
14.5%
19.8%
13.5%
16.1%
6.4% 6.3%
15.2%
16.2%
(1) (1)
Full YearQ4
(2)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(2) Total company reflects adjusted EBITDA margins
SPOTLIGHT: COMPOSITES
8
• SEM delivers a record year in 2020 – 13%
operating income growth and over 200 bps
in margin expansion year-over-year
• Prior investments in composites platform
and outdoor high performance applications
paying off, resulting in substantial growth
over the last two years
SEM
Operating
Income
(OI % of Sales)
($ in millions)
$(0.1) $(1.0)
$2.2
$19.1
$26.8
2016 2017 2018 2019 2020
Composites
Performance
(Operating Income)
$83.7
$94.4
2019 2020
(11.2%)
(13.3%)
0.1 0.1
0.2
0.5
0.6
0.7
0.8
0.9
0.9 1.0
11 12 13 14 15 16 17 18 19 20
$19
$160
$338
2011 2019 2020
0.16
0.20
0.26
0.34
0.42
0.50
0.58
0.72
0.79 0.81
0.85
11 12 13 14 15 16 17 18 19 20 21E
FREE CASH FLOW AND CAPITAL ALLOCATION
9
Free Cash Flow Dividends Share Repurchases Deleveraging
3.5x
2.7x
2019PF 2020PF
Growing Dividend Cumulative Buybacks Net Leverage
$
B
n
$
p
e
r
sh
a
re
Cash Generation
(1) (1)
~$1Bn
REPURCHASED
OVER LAST 10 YEARS
~$350MM
PAID OVER LAST 10 YEARS
~$338MM 2.7x
NET LEVERAGE
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
GREAT PLACE TO WORK!
10
2 0 2 1 O U T L O O K
Synergies
($ millions)
Initial
Three-Year
Estimate
Revised
Three-Year
Estimate
2021
Expected
Realization
Administrative $ 18 $ 20 $ 15
Sourcing 24 30 15
Operational 18 25 5
Total Synergies $ 60 $ 75 $ 35
C L A R I A N T I N T E G R AT I O N &
C O S T S Y N ERG I E S U PDATE
12
• Integration going extremely well: synergy target increased from $60 million to $75 million
• $5 million of synergies in 2020 and expect to realize $35 million in 2021
• Relentless focus on guiding principles of safety first, employee collaboration and exceeding
customer expectations
• Future revenue synergies are not part of these estimates and represent additional growth over
the long term
$86
$103
2020PF 2021E
$0.53
$0.70
2020PF 2021E
ORGANIC GROWTH PROJECTIONS – Q1
( T O TA L C O M PA N Y )
13
Sales Adjusted Operating Income
$991
$1,090
2020PF 2021E
+ 10%
Adjusted EPS
+ 20% + 32%
(in millions) (in millions)
(1) (1) (1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
$308
$360
2020PF 2021E
$1.93
$2.40
2020PF 2021E
ORGANIC GROWTH PROJECTIONS – FULL YEAR
( T O TA L C O M PA N Y )
14
Sales Adjusted Operating Income
$3,783
$4,100
2020PF 2021E
+ 8%
Adjusted EPS
+ 17% + 24%
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(1) (1)
(in millions) (in millions)
(1)
2020 Pro forma $3,783 $308
Sustainable Solutions 60 11% 24
Healthcare 60 11% 18
Composites 20 10% 10
Growth in Emerging Regions 50 7% 11
Other (GDP growth) 82 5% 11
Sub-total $4,055 7% $382
COVID Response Applications (25) - (11)
Outdoor High Performance Applications (15) - (7)
Asia Payroll Tax Subsidy (COVID) - - (4)
FX Impact 85 - 7
Synergies - - 30
Incentives, Travel, Other Employee Costs - - (37)
2021 Estimated $4,100 8% $360
2021 ORGANIC SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
15
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(2) COVID Response Applications: facemasks, personal protective equipment
Sales Growth Rate
Adjusted
Operating
Income$ millions
(1)
(2)
C A S H F LOW A N D L E V E R AGE
16
• Asset light business generates
significant free cash flow
• Cash generation in 2021 partially offset
by restructuring activities to capture
synergies associated with the Clariant
Masterbatch acquisition
• Cash flow deployed to M&A,
opportunistic share repurchases and
balance sheet / leverage reduction
3.5x
2.7x
2.1x
2019PF 2020PF 2021E
Net Debt / Adjusted EBITDA
(1) (1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
($ millions) 2020 2021E
Adjusted EBITDA 382 510
Working Capital: Source / (Use) 116 (30)
Cash Taxes (40) (53)
Interest Paid (67) (76)
CapEx (62) (75)
CapEx for Synergy Capture (2) (20)
Restructuring for Synergy Capture (11) (25)
Other 22 19
Free Cash Flow 338 250
We sell solutions not commodities.
Tenure of our relationships with multi-national OEMs exceeds
15 years.
https://www.avient.com/sites/default/files/2024-05/3b - Corporate Governance Guidelines.Draft Feb. 2024.v1.2.Revised.4-16-24.Final_.pdf
Is or has been an employee of the Company within the past three years, or has an
immediate family member who is or has been an executive officer of the Company
within the past three years;
B.
Has been, or has an immediate family member who has been, within the last three
years, a partner or employee of the Company’s internal or external auditor and
personally worked on the Company’s audit within that time;
F.
Directors are expected to
comply with this requirement within five years of becoming a director.
https://www.avient.com/sites/default/files/resources/PolyOne%25202018%2520Proxy%2520Statement.PDF
Time-vesting SARs generally may not vest sooner than one-third per year
over three years, and time-vesting RSUs generally will have a restriction
period of at least three years, except that the restriction period may expire
ratably during the three-year period.
Three-year performance is based on three-year TSR (2015-2017).
As a
general matter, the Compensation Committee made its decisions regarding year-over-year increases in Mr.
https://www.avient.com/sites/default/files/2021-09/avnt-seaport-conference-presentation.pdf
Tenure of our relationships with multi-national OEMs exceeds
15 years.
That’s Avient.
21,000+
CUSTOMERS
>75%
ARE CUSTOMIZED SOLUTIONS
TO UNIQUE SPECIFICATIONS
of
sales
5
In July 2020, we completed the acquisition of the Clariant Masterbatch business, the
largest acquisition in the 20-year history of our company.
Q 2 2 0 2 1 P E R F O R M A N C E
U P D AT E
$69
$122
2020PF 2021
$0.42
$0.87
2020PF 2021
Q2 2021 – ORGANIC PERFORMANCE
( T O TA L C O M PA N Y )
10
Sales Adjusted Operating Income
$870
$1,235
2020PF 2021
+ 42%
Adjusted EPS
+ 77% + 107%
(in millions) (in millions)
(1) (1) (1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Q2 2021 SEGMENT PERFORMANCE
11
CAI
$488
$624
Sales
($ in millions)
SEM Distribution
$54
$86
Operating Income
+28%
+59%
$239
$404
Sales
$15
$24
Operating Income
+69%
+60%
(1)
$159
$241
Sales
$17
$37
Operating Income
+52%
+118%
(1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
SPECIALTY EBITDA MARGIN EXPANSION
12
CAI
(1) 2018-2020 financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
15.3% 15.2%
16.2%
18.5%
2018 2019 2020 YTD 2021
14.8% 15.2%
17.6%
19.1%
2018 2019 2020 YTD 2021
(1)
SEM
• Continued portfolio transformation to
high-growth end markets and
sustainable solutions
• Clariant Masterbatch synergy realization
• Investments in composites and outdoor
high performance applications drive
growth and mix improvements
CAI EBITDA MARGIN EXPANSION
13
Legacy CAI
18.9% 18.9%
20.3%
2019 2020 YTD 2021
Legacy
Clariant MB
11.9%
13.8%
16.8%
2019 2020 YTD 2021
• Synergy capture translating to the
bottom line
• Positive mix with growth in healthcare,
consumer and packaging end-markets
• World-class vitality index of 35%
represents sales from products
introduced in the last five years.
https://www.avient.com/sites/default/files/2022-04/Avient Q1 2022 Earnings Release.pdf
The company delivered first quarter GAAP EPS of $0.91 compared to $0.86 in the prior year
quarter.
Sales increased 11% to $1.3 billion in the first quarter and
adjusted EPS grew 11% to $0.99 over the prior year first quarter.
I’m pleased
with our results for the quarter, which exceeded our initial estimates as we began the year,” said
Robert M.
https://www.avient.com/sites/default/files/2021-05/avnt-first-quarter-2021-earnings-presentation.pdf
$86
$123
2020PF 2021
$0.53
$0.89
2020PF 2021
Q1 2021 – ORGANIC PERFORMANCE
( T O TA L C O M PA N Y )
3
Sales Adjusted Operating Income
$991
$1,162
2020PF 2021
+ 17%
Adjusted EPS
+ 43% + 68%
(in millions) (in millions)
(1) (1) (1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Q1 2021 SEGMENT PERFORMANCE
4
CAI
$536
$609
Sales
($ in millions)
SEM Distribution
$64
$89
Operating Income
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
+14%
+39%
$290
$363
Sales
$19
$24
Operating Income
+25%
+26%
(1)
$185
$217
Sales
$22
$34
Operating Income
+17%
+55%
SPECIALTY EBITDA MARGIN EXPANSION
5
CAI
(1) 2018-2020 financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
15.3% 15.2%
16.2%
19.1%
2018 2019 2020 Q1 2021
14.8% 15.2%
17.6%
19.4%
2018 2019 2020 Q1 2021
(1)
SEM
• Continued portfolio transformation to
high-growth end markets and
sustainable solutions
• Clariant Masterbatch synergy realization
• Investments in composites and outdoor
high performance applications drive
growth and mix improvements
CAI EBITDA MARGIN EXPANSION
6
Legacy CAI
18.9% 18.9%
21.0%
2019 2020 Q1 2021
Legacy
Clariant MB
11.9%
13.8%
17.4%
2019 2020 Q1 2021
• Early synergy capture translating to
the bottom line
• Positive mix with growth in healthcare,
consumer and packaging end-markets
• World-class vitality index of 36%
represents sales from products
introduced in the last five years.
This
innovation drives performance and is
reflective of consistent, strategic
investments in our portfolio…and
people.
2020 Pro forma $991 $86
Sustainable Solutions 15 11% 6
Healthcare 28 22% 6
Composites 6 10% 3
Growth in Emerging Regions 44 30% 10
Other 53 10% 7
Sub-total $1,137 15% $118
FX Impact 25 - 2
Synergies - - 11
Incentives, Travel, Other Employee Costs - - (8)
2021 Actual $1,162 17% $123
Q1 2021 ORGANIC SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
7
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Sales Growth Rate
Adjusted
Operating
Income$ millions
(1)
8
Electrical &
Electronics
Building &
Construction
Wire & Cable Transportation Industrial Healthcare Packaging Consumer
Q1 2020PF Q1 2021
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(2) Financial information is presented on a constant currency basis
(1,2)
(42% of total revenue)
(58% of total revenue)
Q1 END MARKET SALES PERFORMANCE
+17%
+14% +8%
+10%
+8% +22%
+5%
+24%
Q 2 A N D F U L L Y E A R
2 0 2 1 O U T L O O K
$69
$112
2020PF 2021E
$0.42
$0.80
2020PF 2021E
ORGANIC GROWTH PROJECTIONS – Q2
( T O TA L C O M PA N Y )
10
Sales Adjusted Operating Income
$870
$1,100
2020PF 2021E
+ 26%
Adjusted EPS
+ 62% + 90%
(in millions) (in millions)
(1) (1) (1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
FULL YEAR GUIDANCE INCREASED
11
Sales Adj.
Develop and implement solutions to end plastic
waste while supporting AEPW $1.5B
investment in key initiatives.
2 0 3 0 S U STA I NA B I L I T Y TA RG E TS
15
PEER COMPARISONS
16
$442
$457
$560
2019PF 2020PF 2021E
$1.74
$1.93
$2.80
2019PF 2020PF 2021E
FULL YEAR 2019 – 2021 ORGANIC GROWTH
( T O TA L C O M PA N Y )
17
Sales Adjusted EBITDA
$3,981
$3,783
$4,300
2019PF 2020PF 2021E
+ 8%
Adjusted EPS
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(1) (1)
(in millions) (in millions)
(1)(1)
+ 27% + 61%
(1) (1)
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.