https://www.avient.com/knowledge-base/article/less-wear-more-wow?ind[]=6601
What’s more, using lubricants to protect a component from wear is a two-step process, because the part must first be manufactured, then coated with oil or grease, adding cost to the manufacturing process.
Beyond improved surface appearance, protection from friction, and reduced wear, these polymers also offer the design freedom and part consolidation potential of thermoplastics.
https://www.avient.com/news/polyone-hires-cathy-k-dodd-vice-president-marketing
In addition she worked at Honeywell International as brand manager for FRAM and Autolite, as well as global market manager for healthcare specialty films.
https://www.avient.com/idea/four-ways-intensify-road-consumer-experience
Custom polymer colorants, patterns and hydrographic films make it easy to capture the eye
https://www.avient.com/sites/default/files/2024-12/AVNT Investor Day 2024 Presentation.pdf
Streamlined organization with fewer business units to reduce internal complexity and better serve customers
Engineered
SEGMENT STRATEGIC REVIEW
Copyright © .
2024 40
Go-to partner for engineered material
solutions to meet our customers’ most
challenging applications
Specialty Engineered Materials – an overview
44%
56%
by business unit
Engineered
Composite
55%
32%
13%
Americas
Europe,
Middle East,
Africa
$1.1B
Product portfolio offers customized solutions to serve
a range of end markets
• Defense
• Energy
• Healthcare
• Building & Construction
• Transportation
• Telecommunications
• Specialty Consumer
• Industrial
• Packaging
Copyright © .
2024 41
Engineered materials
Strength,
stiffness
Durability Purity Elasticity Fire
retardancy
Barrier
properties
Conductivity Color and
UV stability
Sustainability Processing
ease
Healthcare
devices
Semiconductor
manufacturing Transportation TelecomWire and cable
solutions
Consumer
goods
Copyright © .
2024 42
Composite materials
Engineered fibers Tapes, fabrics Laminates, panels Pultruded components Shapes Long-fiber thermoplastics
Fiber optic
cables
Electrical
infrastructure
Ballistic
protection
Outdoor high
performance
Trucks,
rail, RV
Composite
lumber
43Copyright © .
Technology hybridization
EXISTING EVOLVING
Marine
composite
UV resistance
Insulators Composite
utility poles
Fire-retardant
composite
Building &
construction
composite panels
Next gen fire-retardant /
UV resistant materials
Fire-retardant,
UV resistant
composite utility polesFire retardants
Copyright © .
2024 44
Personalized, self-administered
44
SEM PORTFOLIO
Copyright © .
2024 45
• Global adoption of remote patient continuous glucose monitoring,
respiratory remedies, and biopharmaceutical processes
• Customers seek global suppliers, with required quality systems, that offer
– Barrier properties to manage chemical ingress
– Elasticity for conformance, patient comfort and sealing
– Purity to manage extractables
– Color / UV stability to differentiate products and extend life
$6B ADDRESSABLE MARKET
Continuous
glucose monitors
Respiratory
care
Biopharma
tubing Catheters
Copyright © .
2024 46
• Increase in NATO countries and defense spending
• High demand for premium performance in military and law enforcement
– reducing the weight burden
• Strong demand for high performance helmets with capability to protect
from increased threats
• Dyneema™ provides the highest performance products in the market
– up to 20% weight savings compared to competitive products
$5B ADDRESSABLE MARKET
Vests and
inserts Helmets Shields Vehicle
armor
BUILDING NEW
PLATFORMS OF SCALE IN...
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.
https://www.avient.com/products/polymer-additives/uv-and-light-blocking-additives/colormatrix-lactra-sx-light-blocking-additive-pet
Added Protection for Dairy Packaging
ColorMatrix™ Lactra™ SX Light Blocking Additive in solid masterbatch form provides high-performance light blocking technology and protection for liquid dairy contents when added to monolayer PET bottles.
Download our free app to discover how UV barrier technology adds protection to PET packaging
https://www.avient.com/news/avient-earns-2023-refocus-sustainable-innovation-design-award-pcr-color-prediction-service
PLASTICS advances the priorities of our members, who are dedicated to investing in technologies that improve capabilities and advances in recycling and sustainability and providing essential products that allow for the protection and safety of our lives.
Dyneema®, the world’s strongest fiber™, enables unmatched levels of performance and protection for end-use applications, including ballistic personal protection, marine and sustainable infrastructure and outdoor sports
https://www.avient.com/resource-center?document_subtype=0&document_type=59&form_id=resource_filter_form&industry=0&op=FILTER RESULTS&product_family=0&product_name=0&page=3
Stat-Tech™ Static Dissipative Formulations protected critical electronics from ESD while providing an environmental barrier
Focusing on Military-grade Protection for US soldiers
Military-Grade Protection for U.S.
https://www.avient.com/resource-center?document_type=59&page=3
Stat-Tech™ Static Dissipative Formulations protected critical electronics from ESD while providing an environmental barrier
Focusing on Military-grade Protection for US soldiers
Military-Grade Protection for U.S.
https://www.avient.com/resource-center?document_type=59&document_subtype=0&industry=0&product_family=0&product_name=0&op=FILTER RESULTS&form_id=resource_filter_form&page=35
OnCap™ Light Shield Damage Protection - White Paper
Information on the application and use of light shield additives to protect products from light damage
Discover how Avient’s ColorMatrix Amosorb oxygen scavengers and Ultimate UV™ light barrier can protect coconut water from oxygen and light-induced degradation
https://www.avient.com/sites/default/files/2022-05/AVNT May IR Presentation w Non GAAP Recs.pdf
FX)
$429
$490
$3.05
$3.50
FY 2022 PERFORMANCE
16
$4,819
$5,100
+ 6%
(+ 8% excluding FX)
Adjusted EPS
+ 14%
(+ 17% excluding FX)
+ 15%
(+ 18% excluding FX)
(in millions) (in millions)
Sales Adjusted Operating Income
17
CASH FLOW / LEVERAGE
($ millions) 2022E
Cash Flow from Operating Activities 400$
Less:
Run-Rate CapEx (90)
CapEx for Clariant Integration (10)
CapEx for IT System Upgrade (15)
Total CapEx (115)
Free Cash Flow 285$
Adjusted EBITDA 635$
Net Debt / Adjusted EBITDA 1.7x
DYN E E MA ACQ U I S I T I O N
19
15x stronger than steel
Reduces weight by 30% vs. other solutions
Well-maintained global asset base poised to serve growing demand
• Purchase price of $1.48B represents 11.4x multiple of
2022 EBITDA
• Acquisition will expand Avient’s composites and fiber
portfolio with Dyneema®, the World’s Strongest Fiber™
• $415M sales and 30%+ EBITDA margins; Immediately
accretive to pro forma 2022 EPS, adding $0.35
• 1,300 patents globally, ~50% of sales patent protected
• 1,000+ employees across global production network and
dedicated technology centers
• Composites platform will increase from $261M to $680M in
revenue and from $49M to $180M in EBITDA Indicates Dyneema® location
$175M
(42%)
$65M
(16%)
$175M
(42%)
2022E Sales By Region ($M)
(1) $0.35 EPS excludes intangible amortization
(2) Based on 2022 expected results
(1) (2)
(2)
FIT WITH FOUR PILLAR STRATEGY
20
Specialization
• Innovation-led organization with
tremendous intellectual property value in
trademarks, patents and “know-how”
• Deep history of application development
and premium, leading brand with the
World’s Strongest FiberTM
Globalization
• Global customer base with an
established presence across all major
geographic regions
• Global technology centers complement
existing Composites applications and
expertise
Operational
Excellence
• Best-in-class safety performance
• Well-run and maintained asset base fit to
serve future growth
• Highly effective and reliable supply chain
with emphasis on optimizing service to
customers
Commercial
Excellence
• Deep customer relationships extend
across the value chain and drive ability
to grow
• Offer a full suite of services with an active
role in design, development and
commercialization
People
Experienced and
talented associates
with a passion for
safety, specialization
and winning
DYNEEMA® OVERVIEW
K E Y I N D U S T R I E S
PERSONAL PROTECTION
Military • Law Enforcement • First
Responders Body Armor • Helmets •
Vehicle Protection
$215M
MARINE & SUSTAINABLE
INFRASTRUCTURE
Towing / Mooring • Aquaculture •
Floating Wind • Offshore Cranes
$130M
CONSUMER
Consumer • Outdoor High Performance •
Safety Equipment
$70M
21 Figures reflect 2022 expected sales
MIFOverview Competition Valuechain &
Go-to-market Strategy Innovation Financials
TECHNOLOGY
22
1,200 1,300
2,500
Avient Dyneema Combined
Patents
• True specialty business – the World’s Strongest Fiber™
• Deep history of application development with customers,
strongest in the industry
• The only UHMwPE (ultra-high molecular weight polyethylene)
fiber producer that is backward integrated
o Provides innovation advantage through control of all steps of the process
• Complementary with our existing reinforced film expertise
(PolyStrand) and engineered fiber presences (Fiber-Line)
WINNING PROPERTIES
Ultra high strength vs. weight Highly flexible
Floats on water Chemically inert; no smell/taste and non-toxic
High resistance to UV radiation Self-lubricating, with low friction
One-of-a-kind technology
®
FORMULATION PROCESS
23
• Like Avient, Dyneema® offers similar
core competencies around formulation
and material science
• Technology that combines polymers and
fibers to provide specialized, high
performing solutions for customers
• Design capabilities ensure that
applications are highly customized for
the specified end use
DYNEEMA® IN THE VALUE CHAIN
24
UHMwPE
Fiber / Tapes
Military Personnel,
Law Enforcement
Heavy Marine,
Offshore Wind Energy
and Mooring,
Aquaculture
Outdoor,
Footwear, Apparel,
Inflatables
• Material Science
• Formulation
• Service
INTERMEDIATE MANUFACTURING
(CUSTOMERS) OEM / APPLICATION
DEMAND TRENDS
25
• Military spending and near-term demand for higher performing personal protection
products (like Dyneema®) expected to increase
o European NATO members annual defense spend expected to increase by up to 20%(1)
o Japan aiming to almost double defense spending over the next 5 years(2)
o Accelerated launch of next generation technology in North America
• Policy-driven demand for sustainable energy; growth in floating offshore wind
farms which require advanced, durable technology
o Offshore wind expected to grow at a CAGR of 32% with the level of annual installations
quadrupling over the next five years(3)
• Continued investment in aquaculture as a sustainable food source(4)
• Strong demand in outdoor high performance space across niche consumer
applications aligns with 10% growth assumption for Avient’s Composites portfolio
Sources:
(1) “Funding NATO”, NATO.int (April 1, 2022)
(2) “Japan Ruling Party Calls for Defense Spending Boost to 2% of GDP”, WSJ (April 21, 2022)
(3) “Global Wind Report 2021”, Global Wind Energy Council
(4) “Aquaculture Supports a Sustainable Earth”, NOAA Fisheries
26
A L I G N M E N T W I T H
S U S T A I N A B I L I T Y G O A L S
PRODUCTS
AVIENT’S EXISTING COMPOSITES PORTFOLIO
D I V E R S E C A P A B I L I T I E S A N D S O L U T I O N S S E R V I N G
M A N U F A C T U R E R S A N D O E M S
LFT Tapes Laminates/Panels Shapes Pultrusion Engineered Fibers
27
AVIENT’S COMPOSITES PORTFOLIO
SALES AND EBITDA
28
$74 $84
$216 $212
$261
$5 $10
$32
$41
$49
$180
0
100
150
200
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
$550
$600
$650
$700
$750
2017 2018 2019 2020 2021 2022E
$680
• Dyneema® acquisition will further
improve Composites EBITDA margins
to 26%
• Dyneema® will complement our
existing portfolio with deep formulation
expertise, innovative culture and
global commercial presence
• Composites will continue to be a key
growth driver to deliver future revenue
growth in excess of GDP
(1) Pro forma for the acquisition of Dyneema®
DISTRIBUTION DIVESTITURE
CONSIDERATIONS
DISTRIBUTION HIGHLIGHTS
30
$21
$57
$69
$94
$105
0
100
150
2006 2011 2016 2021 2022E
• Leading North American Distribution business with
longstanding blue-chip supplier and customer
relationships
• Commercial excellence and regulatory knowledge have
grown healthcare portfolio to over 25% of sales and
positioned business for long-term growth
• Highly specialized portfolio of engineered polymers along
with sustainable solution offerings
• Leading digital capabilities through Avient Now, allowing
enhanced visibility and 24/7 interface with customers
• 98% free cash flow conversion drives greater than 30%
after-tax return on invested capital (ROIC)
• Potential divestiture allows us to remain modestly
leveraged with net debt to adjusted EBITDA expected to
be 2.9x and positions us for further specialty growth in the
future
EBITDA (in $M)
DYNEEMA® TRANSACTION OVERVIEW
31
- $1.48B net purchase price
- Represents 11.4x expected 2022 EBITDA
- Committed financing in place
- Permanent financing to be combination of available cash on-hand, new
Senior Unsecured Notes, new Senior Secured Term Loan
- Potential proceeds from Distribution divestment could be used to pay down
near-term maturing debt
- Closing expected in second half of 2022, subject to regulatory
approvals and certain customary closing conditions
Transaction
Value
Financing
Closing
Conditions /
Timing
CAPITAL STRUCTURE / LEVERAGE
32
• Financing commitments secured from Morgan Stanley
and J.P.