https://www.avient.com/sites/default/files/2020-03/Global_High_Yield_%26_Leverage_Conference %281%29.pdf
V I S I O N
PolyOne Corporation 4
To be the world’s
premier provider of
specialized polymer
materials, services and
solutions
C O R E
V A L U E S
P E R S O N A L
V A L U E S
Honesty IntegrityRespect
Operational
Commercial
Specialization
Globalization
Collaboration ExcellenceInnovation
To be the world’s
premier provider of
specialized polymer
materials, services
and solutions
S A F E T Y F I R S T
PolyOne Corporation 5
Injuries per 100 Workers
Spartech
Acquisition
1.3
1.1 1.1
0.85
0.65
0.57
0.54
0.97
0.84
0.74 0.74
0.69
0.51
0.56
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
C O M M O D I T Y T O S P E C I A L T Y T R A N S F O R M A T I O N
PolyOne Corporation 6
• Volume driven,
commodity
production
• Heavily tied to cyclical
end markets
• Performance largely
dependent on non-
controlling joint
ventures
• Shift to value-based
selling & an innovative
culture
• New leadership team
appointed
• Implementation of
four pillar strategy
• Investment in
commercial training
and innovation
• Faster growing, high
margin focus
• Accelerated growth
with world class
vitality index
• Significant
commercial resource
additions
• Expanded margins
with specialty focus
• Acquired strategic,
bolt-on companies to
expand technology
offerings and improve
geographic breadth
Volume Value Transformation The Future
2006 - 2013 2013 – 20192000-2005 2006 - 2013
• Landmark portfolio
transformation
creates specialty
growth company
• Sustainability / mega-
trends drive above
market growth
2020 and
Beyond
PolyOne Corporation 7
P O L Y O N E
2 0 1 9 R E V E N U E | $ 2 . 9 B I L L I O N
Segment End Market Geography
15% Healthcare
Wire & Cable
Building &
Electrical &
Electronics
Color
Additives
& Inks
34%
Distribution
41%
Specialty
Engineered
25%
54%
Latin
America
P R O O F O F P E RFO RMAN CE
C O N S E C U T I V E
Y E A R S
10
A D J U S T E D E P S E X P A N S I O N
PolyOne Corporation 8
$1.69
$1.51
S U S T A I N A B L E P A T H T O D O U B L E - D I G I T E P S G R O W T H
PolyOne Corporation 9
P E O P L E P R O D U C T S P L A N E T P E R F O R M A N C E
Double digit
annual EPS
growth
Expand specialty portfolio
with strategic acquisitions
Innovate and develop new
technologies and services
Repurchase 600K-1M
shares annually
Increase commercial
resources 5-7% annually
Double acquired
company margins
Enhance efficiencies
through Lean Six Sigma
and commercial excellence
531
710
1,042
130
164
208
504
663
880
2014 2018 2019E PF*
R&D / Technical Marketing Sales
PolyOne Corporation 10
+ 34%
+ 26%
+ 32%
E X P A N S I O N O F COMMERCIAL RESOURCES D R I V I N G G R O W T H
$2.9 $2.9
$3.5
2015 2016 2017 2018 2019E
PF
Total
+ 9%
Organic
+ 5%
Revenue in Billions
Total
+ 10%
Organic
+ 7%+ 47%
+ 27%
+ 33%
$4.0
$3.2
2019E PF*
Lead
Specialists
T H E E V O L V I N G C U S T O M E R R E L A T I O N S H I P
PolyOne Corporation 11
Expanded Path
Traditional Path
Strategic Accounts/
Field Sales
Business
Development
Customer
Service
Web and Social
Media
Inside Sales
PolyOne Corporation 12
Investments in digital and dedicated inside sales to
improve customer experience
110% increase in leads (from 6,000 to 12,700) driven
by website, phone, and online chat
EXPANDED PATH
A D D I N G C U S T O M E R T O U C H P O I N T S
4
33
Inside sellers
$11M
$87M
Inside sales/digital revenue
A L I G N I N G W I T H T R E N D S F O R G R O W T H
T R A N S P O R T A T I O N P A C K A G I N G H E A L T H C A R E C O N S U M E R
PolyOne Corporation 13
Facilitate
alternative
energy
solutions
Light-
weighting
Reduce
packaging
materials
Improve
recyclability
Reduce
spread of
infection
R E V E N U E F R O M S U S T A I N A B L E S O L U T I O N S
PolyOne Corporation 14
2016 2017 2018 2019
Lightweighting Reduced Material Requirements Improved Recyclability
Renewable Energy Applications Eco-conscious Bio-derived Content
Reduced Energy Use VOC Reduction
$275M
$325M
$355M
$410M 14% Total Annual Growth
9% Organic Annual Growth
I N N O V A T I O N
PolyOne Corporation 15
Customization
55%
M&A
Innovation
Pipeline
Innovation comes from Research & Development Spend
($ millions)
Vitality Index
% of sales from products launched last 5 years
37%
2006 2019
$20
$51
2006 2019
Transformational
Opportunity for Growth
Through M&A
Adjacent
Opportunity for
Growth Through New
Product Pipeline
Core
Customization
3 H O R I Z O N S O F D E V E L O P M E N T
PolyOne Corporation 16
Incremental
development
from existing
base of
technology
New development
adjacent to current
New technology
development
outside of and with
our current base
Service adjacent
markets and
Create new
markets, target
new customer
needs
Service existing
markets and
Market
Technical
I N N O V A T I O N
Non-Halogen Flame
Retardants
Barrier Technologies
Fiber Colorants
Advanced Composites
Thermoplastic Elastomers
Gordon Composites/
Polystrand – Composites
GLS – Thermoplastic Elastomers
ColorMatrix – Liquid Color & Additives
PlastiComp
Fiber-Line
I N N O V A T I O N S P O T L I G H T :
C O M P O S I T E S
PolyOne Corporation 17
C O M P O S I T E M A T E R I A L S
Glass
Carbon Aramid
Thermosets
Thermoplastics
PolymersFibers
PolyOne Corporation 18
Focused End Markets
• Wire & Cable / Electrical
• Consumer
• Transportation
• Industrial
C O M P O S I T E S P O R T F O L I O
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
PolyOne Corporation 19
LFT Tapes Laminates/Panels Shapes Pultrusion Engineered Fibers
P O L Y O N E A P P L I C A T I O N S I N F I B E R O P T I C C A B L E S
PolyOne Corporation 20
1.
https://www.avient.com/sites/default/files/2021-10/avnt-q3-2021-news-release.pdf
Reconciliation of Pro Forma Adjusted Earnings per Share:
Nine Months Ended
September 30, 2020
Year Ended
December 31, 2020
Net income from continuing operations attributable to Avient shareholders $ 57.8 $ 132.0
Special items, after tax 42.0 24.8
Adjusted net income from continuing operations excluding special items 99.8 156.8
Clariant MB pro forma adjustments to net income from continuing operations(2) 20.7 20.7
Pro forma adjusted net income from continuing operations attributable to Avient
shareholders $ 120.5 $ 177.5
Weighted average diluted shares 90.7 90.6
Pro forma impact to diluted shares from January 2020 equity offering(2) 2.9 1.5
Pro forma weighted average diluted shares 93.6 92.1
Adjusted EPS - excluding special items pro forma for Clariant MB acquisition $ 1.29 $ 1.93
(2) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
15
Nine Months Ended
September 30, 2020
Reconciliation of Pro Forma Adjusted
Earnings per Share: Avient
Special
Items
Adjusted
Avient
Clariant MB
Pro Forma
Adjustments(2)
Pro Forma
Adjusted
Avient
Sales $ 2,245.1 $ — $ 2,245.1 $ 540.5 $ 2,785.6
Operating income $ 124.3 $ 59.1 $ 183.4 $ 45.0 $ 228.4
Interest expense, net (55.3) — (55.3) (18.1) (73.4)
Pension settlement gain and mark-to-market
adjustment — (6.9) (6.9) — (6.9)
Other income, net 12.6 0.3 12.9 — 12.9
Income taxes (22.5) (10.5) (33.0) (6.2) (39.2)
Net income attributable to noncontrolling
interests (1.3) — (1.3) — (1.3)
Net income from continuing operations
attributable to Avient shareholders $ 57.8 $ 42.0 $ 99.8 $ 20.7 $ 120.5
Weighted average diluted shares 90.7
Impact to diluted shares from January 2020 equity offering 2.9
Pro forma weighted average diluted shares 93.6
Pro forma adjusted EPS $ 1.29
(2) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
16
Reconciliation of EBITDA by Segment Three Months Ended
September 30,
Nine Months Ended
September 30,
2021 2020 2021 2020
Operating income:
Color, Additives and Inks $ 66.8 $ 50.5 $ 241.9 $ 123.3
Specialty Engineered Materials 31.7 24.7 103.2 64.0
Distribution 23.8 17.5 71.5 51.5
Corporate and eliminations (43.6) (59.2) (109.4) (114.5)
Operating income $ 78.7 $ 33.5 $ 307.2 $ 124.3
Items below OI in Corporate:
Other income, net $ 1.4 $ 1.5 $ 4.1 $ 12.6
Depreciation & amortization:
Color, Additives and Inks $ 26.6 $ 26.3 $ 79.2 $ 48.0
Specialty Engineered Materials 7.9 7.5 23.8 22.7
Distribution 0.2 0.2 0.6 0.4
Corporate and eliminations 2.1 2.5 4.1 6.2
Depreciation & Amortization $ 36.8 $ 36.5 $ 107.7 $ 77.3
EBITDA:
Color, Additives and Inks $ 93.4 $ 76.8 $ 321.1 $ 171.3
Specialty Engineered Materials 39.6 32.2 127.0 86.7
Distribution 24.0 17.7 72.1 51.9
Corporate and eliminations (41.5) (56.7) (105.3) (108.3)
EBITDA $ 116.9 $ 71.5 $ 419.0 $ 214.2
EBITDA as a % of Sales:
Color, Additives and Inks 15.9 % 15.6 % 17.6 % 17.5 %
Specialty Engineered Materials 17.0 % 18.5 % 18.4 % 16.7 %
Distribution 5.5 % 6.4 % 6.0 % 6.4 %
17
Reconciliation of Pro Forma EBITDA - Color, Additives and Inks Nine Months Ended
September 30, 2020
Sales:
Color, Additives and Inks $ 977.1
Clariant MB pro forma adjustments(2) 540.5
Pro forma sales $ 1,517.6
Operating income:
Color, Additives and Inks $ 123.3
Clariant MB pro forma adjustments(2) 45.0
Pro forma operating income $ 168.3
Depreciation & amortization:
Color, Additives and Inks $ 48.0
Clariant MB pro forma adjustments(2) 30.1
Pro forma depreciation & amortization $ 78.1
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA):
Color, Additives and Inks $ 171.3
Clariant MB pro forma adjustments(2) 75.1
Pro forma EBITDA $ 246.4
Pro forma EBITDA as a % of Sales 16.2 %
(2) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
Three Months Ended
September 30,
Nine Months Ended
September 30,
Reconciliation to EBITDA and Pro Forma Adjusted EBITDA: 2021 2020 2021 2020
Net income from continuing operations – GAAP $ 52.6 $ 2.6 $ 201.7 $ 59.1
Income tax expense 8.5 2.7 51.8 22.5
Interest expense 19.0 29.7 57.8 55.3
Depreciation and amortization from continuing operations 36.8 36.5 107.7 77.3
EBITDA $ 116.9 $ 71.5 $ 419.0 $ 214.2
Special items, before tax 19.9 50.0 36.5 62.0
Interest expense included in special items — (9.6) — (10.1)
Depreciation and amortization included in special items (0.9) (1.3) (0.1) (2.5)
Adjusted EBITDA $ 135.9 $ 110.6 $ 455.4 $ 263.6
Clariant MB pro forma adjustments(2) — — — 75.1
Pro forma adjusted EBITDA $ 135.9 $ 110.6 $ 455.4 $ 338.7
(2) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
NEWS RELEASE
Attachment 1
https://www.avient.com/sites/default/files/2021-03/avient-antitrust-2021-update-english.pdf
Any such program
should be reviewed by the Avient Legal Department
before it is implemented.
16.
https://www.avient.com/sites/default/files/2024-12/Terms and Conditions of Sale for Czech Republic %28Czech Translation%29.pdf
Kupující odškodní a ochrání
Prodávajícího před veškerou odpovědností za Náklady Kupujícího na odškodnění, které vzniknou v důsledku nebo v souvislosti s
tím, že Kupující výše uvedené informace nerozšířil.
16.
https://www.avient.com/sites/default/files/2024-12/Terms and Conditions of Sale for France.pdf
Except in the case of a force majeure, if not satisfied with
Seller’s determination, Buyer as its sole remedy shall have a right to terminate this contract without further obligation
upon: (i) ten (10) calendar days’ written notice; and (ii) payment for all Product received to date.
16.
https://www.avient.com/sites/default/files/2022-08/Avient CDP_Climate_Change_Questionnaire_2022.pdf
These
risks could result in changes to our products that we offer to our
customers but could also be impacted by our customer’s perception
Avient CDP Climate Change Questionnaire 2022 Friday, July 29, 2022
16
of our operations.
In 2021, our sustianable solutions
portfolio grew by 16% over prior year.
In 2021, our
sustainable solutions portfolio grew by over 16% over the prior year (compared to our
overall corporate growth of 12% annually).
https://www.avient.com/sites/default/files/2023-02/AVNT Q4 2022 Earnings Press Release-1.pdf
Reconciliation of Pro Forma Net Debt
December 31,
2022
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
16
Free Cash Flow Calculation
December 31,
2022
Cash provided by operating activities 398.4
Capital expenditures (105.5)
Free cash flow $ 292.9
Reconciliation to EBITDA and Adjusted EBITDA
Year Ended
December 31, 2022
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/resources/AVNT Fermium Conference - May 2023 w NonGAAP Recs.pdf
Chamber of Commerce; BEAD refers to
Broadband Equity, Access, and Deployment Program
16
• Fiscal Year 2024 U.S.
https://www.avient.com/sites/default/files/2021-04/avnt-first-quarter-2021-news-release.pdf
Reconciliation of Pro Forma Adjusted Earnings per Share:
Three Months Ended
Net income from continuing operations attributable to Avient shareholders $ 33.1
Special items, after tax (Attachment 3) 8.6
Adjusted net income from continuing operations excluding special items 41.7
Clariant MB pro forma adjustments to net income from continuing operations(2) 7.8
Pro forma adjusted net income from continuing operations attributable to Avient shareholders $ 49.5
Weighted average diluted shares 86.7
Pro forma impact to diluted shares from January 2020 equity offering 6.1
Pro forma weighted average diluted shares 92.8
Adjusted EPS - excluding special items pro forma for Clariant MB acquisition $ 0.53
December 31, 2020
Reconciliation of Pro Forma Adjusted
Earnings per Share: Avient
Special
Adjusted
Clariant MB
Pro Forma
Adjustments(2)
Pro Forma
Adjusted
Sales $ 3,242.1 $ — $ 3,242.1 $ 540.4 $ 3,782.5
Operating income $ 189.3 $ 73.7 $ 263.0 $ 45.0 $ 308.0
Interest expense, net (74.6) 10.1 (64.5) (18.1) (82.6)
Other income, net 24.3 (17.6) 6.7 — 6.7
Income taxes (5.2) (41.4) (46.6) (6.2) (52.8)
Net income attributable to noncontrolling
interests (1.8) — (1.8) — (1.8)
Net income from continuing operations
attributable to Avient shareholders $ 132.0 $ 24.8 $ 156.8 $ 20.7 $ 177.5
Weighted average diluted shares 90.6
Impact to diluted shares from January 2020 equity offering 1.5
Pro forma weighted average diluted shares 92.1
Pro forma adjusted EPS $ 1.93
(2) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
14
December 31, 2019
Reconciliation of Pro Forma Adjusted
Earnings per Share: Avient
Special
Adjusted
Clariant MB
Pro Forma
Adjustments(3)
Pro Forma
Adjusted
Sales $ 2,862.7 $ — $ 2,862.7 $ 1,118.6 $ 3,981.3
Operating income $ 156.8 $ 71.7 $ 228.5 $ 72.9 $ 301.4
Interest expense, net (59.5) — (59.5) (33.4) (92.9)
Other income, net 12.1 (10.0) 2.1 — 2.1
Income taxes (33.7) (5.9) (39.6) (9.1) (48.7)
Net income attributable to noncontrolling
interests (0.2) — (0.2) — (0.2)
Net income from continuing operations
attributable to Avient shareholders $ 75.5 $ 55.8 $ 131.3 $ 30.4 $ 161.7
Weighted average diluted shares 77.7
Impact to diluted shares from January 2020 equity offering 15.3
Pro forma weighted average diluted shares 93.0
Pro forma adjusted EPS $ 1.74
(3) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
15
Reconciliation of EBITDA by Segment
Year Ended December 31,
2021 2020 2020 2019 2018
Color, Additives and Inks $ 88.8 $ 40.5 $ 180.8 $ 147.4 $ 158.5
Specialty Engineered Materials 34.2 22.3 94.4 83.7 72.3
Distribution 24.0 19.4 69.5 75.4 71.5
Corporate and eliminations (26.6) (29.4) (155.4) (149.7) (123.7)
Operating income $ 120.4 $ 52.8 $ 189.3 $ 156.8 $ 178.6
Items Below OI in Corporate
Other income, net $ 1.5 $ 1.6 $ 24.3 $ 12.1 $ (12.9)
Depreciation & Amortization:
Color, Additives and Inks $ 27.4 $ 10.9 $ 75.1 $ 42.7 $ 44.3
Specialty Engineered Materials 7.8 7.5 30.0 29.5 23.2
Distribution 0.2 0.1 0.7 0.5 0.7
Corporate and eliminations 1.7 1.4 9.2 5.4 4.4
Depreciation & Amortization $ 37.1 $ 19.9 $ 115.0 $ 78.1 $ 72.6
EBITDA
Color, Additives and Inks $ 116.2 $ 51.4 $ 255.9 $ 190.1 $ 202.8
Specialty Engineered Materials 42.0 29.8 124.4 113.2 95.5
Distribution 24.2 19.5 70.2 75.9 72.2
Corporate and eliminations (24.9) (28.0) (146.2) (144.3) (119.3)
EBITDA $ 159.0 $ 74.3 $ 328.6 $ 247.0 $ 238.3
EBITDA as a % of Sales:
Color, Additives and Inks 19.1 % 20.0 % 17.0 % 18.9 % 19.4 %
Specialty Engineered Materials 19.4 % 16.1 % 17.6 % 15.2 % 14.8 %
Distribution 6.7 % 6.7 % 6.3 % 6.4 % 5.7 %
16
Reconciliation of Pro Forma EBITDA - Color,
Additives and Inks
Three Months Ended
March 31,
Year Ended
December 31,
2020 2020 2019 2018
Sales:
Color, Additives and Inks $ 256.5 $ 1,502.9 $ 1,003.8 $ 1,046.5
Clariant MB pro forma adjustments(4) 279.4 540.4 1,118.6 1,209.8
Pro forma sales $ 535.9 $ 2,043.3 $ 2,122.4 $ 2,256.3
Color, Additives and Inks $ 40.5 $ 180.8 $ 147.4 $ 158.5
Clariant MB pro forma adjustments(4) 23.0 45.0 72.9 80.3
Pro forma operating income $ 63.5 $ 225.8 $ 220.3 $ 238.8
Depreciation & amortization:
Color, Additives and Inks $ 10.9 $ 75.1 $ 42.7 $ 44.3
Clariant MB pro forma adjustments(4) 15.1 30.1 60.3 61.2
Pro forma depreciation & amortization $ 26.0 $ 105.2 $ 103.0 $ 105.5
Earnings Before Interest, Taxes, Depreciation
and Amortization (EBITDA):
Color, Additives and Inks $ 51.4 $ 255.9 $ 190.1 $ 202.8
Clariant MB pro forma adjustments(4) 38.1 75.1 133.2 141.5
Pro forma EBITDA $ 89.5 $ 331.0 $ 323.3 $ 344.3
Pro forma EBITDA as a % of Sales 16.7 % 16.2 % 15.2 % 15.3 %
Three Months Ended
March 31,
Year Ended
December 31,
Reconciliation to Adjusted EBITDA: 2021 2020 2020 2019 2018
Net income from continuing operations – GAAP $ 79.7 $ 33.1 $ 133.8 $ 75.7 $ 87.4
Income tax expense 22.9 11.9 5.2 33.7 14.4
Interest expense 19.3 9.4 74.6 59.5 62.8
Debt extinguishment cost — — 1.1
Depreciation and amortization from continuing operations 37.1 19.9 115.0 78.1 72.6
EBITDA $ 159.0 $ 74.3 $ 328.6 $ 247.0 $ 238.3
Special items, before tax 2.4 9.6 66.2 61.7 59.5
Interest expense included in special items — — (10.1) — —
Accelerated depreciation included in special items (0.5) — (3.2) — (3.0)
Adjusted EBITDA $ 160.9 $ 83.9 $ 381.6 $ 308.7 $ 294.8
Reconciliation of Pro Forma Sales:
Three Months Ended
Sales $ 711.5
Clariant MB pro forma adjustment to sales(4) 279.4
Pro forma sales $ 990.9
(4) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020)
17
Avient Announces Record First Quarter 2021 Results; Increases Full Year Guidance.pdf
NEWS RELEASE
4.29 232pm News Release (002).pdf
https://www.avient.com/sites/default/files/2024-03/Terms and Conditions of Sale for South Africa.pdf
Buyer expressly warrants that employees,
agents and subcontractors of Buyer shall not directly or indirectly (i)
accept, promise, offer or provide any improper advantage to, or (ii)
enter into an agreement (a) with any entity or person, including
officials of a government or a government-controlled entity, or (b)
relating to a product, which would constitute an offense or
infringement of applicable Laws and Standards.
16.