https://www.avient.com/sites/default/files/2022-12/Cesa Fiber Additives Light Stabilizers Product Bulletin.pdf
APPLICATIONS
Avient’s light stabilizers are suitable for PP, PET
and PA fibers used in a wide range of applications
including carpeting, upholstery, automotive textiles,
artificial turf, awnings, marquees, blinds, sunshades,
covers, tents, sun loungers and garden furniture.
https://www.avient.com/sites/default/files/2023-10/Cesa Laser Additives Laser Welding Product Bulletin.pdf
waterproof
watches, and eyewear frames
• Healthcare products – ISO and USP pre-tested
solutions are sold as Mevopur™ Healthcare
Functional Additives
BENEFITS
• Produces strong, durable, and consistent seams
• Available for polyolefins, TPE, ABS, SAN, PA, PC,
PMMA, and others on request
• Delivered as concentrates or ready-to-use
formulations
• Can be combined with color into a single
product
• Specific regulatory compliance available on
request, e.g., UL 94 recognition, EU and US food
contact
• Product guidance from our experts
PRODUCT BULLETIN
Copyright © 2023, Avient Corporation.
https://www.avient.com/sites/default/files/2023-09/Cesa Fiber Additives for Heat Preservation Product Bulletin_A4.pdf
When exposed to a light source for 10 minutes, this
new generation of heat-preservation additives can
provide a temperature increase from 6°C to 12°C for
PET and PA fibers based on different let-down-ratio
and textile structure.
https://www.avient.com/sites/default/files/2020-09/oncap-hc-product-bulletin.pdf
Polypropylene (PP)
Polyethylene (PE)
Polystyrene (PS)
Thermoplastic Elastomer (TPE)
Thermoplastic Polyurethane
(TPU)
Polyamide (PA)
Copolyester (CoPET)
Thermoplastic Vulcanizates
(TPV)
Polycarbonate (PC)
Acrylonitrile Butadiene Styrene
(ABS)
Polycarbonate/ABS (PC/ABS)
www.avient.com
Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2021-03/avient-march-ir-fermium_0.pdf
15
2 0 2 1 O U T L O O K
A S P R O V I D E D O N F E B R U A R Y 9 , 2 0 2 1
W E B C A S T
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
17
• 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 )
18
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 )
19
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% $360
2021 ORGANIC SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
20
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(2) COVID Response Applications: facemasks, personal protective equipment
Sales Growth Rate
Adjusted
Operating
Income$ millions
(1)
(2)
C A S H F LOW A N D L E V E R AGE
21
• 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
22
• 8% increase in sales drives 24% increase in adjusted EPS to $2.40
($2.70 excluding step-up depreciation and amortization) as a result of
continued growth in sustainable solutions and synergy capture
• Clariant synergy capture ahead of schedule: $35M of savings planned from
Clariant Masterbatch acquisition
• Adjusted EBITDA of $510M – highest level in company history
• Deleveraging ahead of schedule – 2.1x net debt to adjusted EBITDA by the
end of 2021
2021 PROJECTIONS
PEER COMPARISONS
23
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
SEGMENT HIGHLIGHTS
U.S. & Canada
50%
EMEA
26%
Asia
16%
Latin America
8%
2020 SEGMENT, END MARKET AND GEOGRAPHY
29
GEOGRAPHY REVENUESEGMENT FINANCIALS
Consumer
23%
Packaging
21%Industrial
15%
Wire & Cable
6%
Building &
Construction
6%
Electrical &
Electronics
4%
END MARKET REVENUE
Transportation
10%
Healthcare
15%
All data reflects 2020 Pro forma for acquisition of the Clariant Masterbatch business.
(1) The total company sales and EBITDA of $3,783M and $457M, respectively, include intercompany sales eliminations and corporate costs
$2,043M
$331M
$709M
$124M
$1,110M
$70M
Sales EBITDA
Distribution
Specialty Engineered Materials
Color Additives and Inks
$457M$3,783M
(1)
Packaging
35%
Consumer
23%
Healthcare
8%
Industrial
14%
Building &
Construction
8%
Transportation
7%
Wire & Cable
3%
Electrical &
Electronics
2%
C O L O R , A D D I T I V E S & I N K S
2 0 2 0 P F R E V E N U E | $ 2 . 0 B I L L I O N
US & Canada
31%
EMEA
40%
Asia
22%
Latin America
7%
END MARKET REGION
30
2020 figures Pro forma for acquisition of the Clariant Masterbatch business
S P E C I A L T Y E N G I N E E R E D M A T E R I A L S
Consumer
24%
Healthcare
10%
Packaging
6%
Wire & Cable(1)
24%
Electrical &
Electronics
13%
Transportation
11%
Industrial
10%
Building &
Construction
2%
2 0 2 0 R E V E N U E | $ 7 0 9 M I L L I O N
END MARKET
US & Canada
58%
EMEA
23%
Asia
19%
REGION
31
(1) Approximately 50% of Wire and Cable sales are associated with Fiber Optic Cabling
D I S T R I B U T I O N
2 0 2 0 R E V E N U E | $ 1 . 1 B I L L I O N
Healthcare
29%
Consumer
25%
Packaging
2%
Industrial
20%
Transportation
14%
Electrical &
Electronics
5%
Building &
Construction
4%
Wire & Cable
1%
US & Canada
82%
Asia
3%
Latin
America
15%
END MARKET REGION
K E Y S U P P L I E R S
32
AMERICAS EMEA ASIA
Consumer
26%
Healthcare
19%
Packaging
13%
Industrial
16%
Wire & Cable
7%
Building &
Construction
5%
Electrical &
Electronics
4%
Packaging
34%
Consumer
16%Healthcare
5%
Industrial
17%
Wire & Cable
10%
Building &
Construction
8%
Electrical &
Electronics
3%
Packaging
32%
Consumer
27%
Healthcare
12%
Industrial
6%
Wire & Cable
6%
Building &
Construction
4%
Electrical &
Electronics
9%
Transportation
10%
Transportation
7%
Transportation
4%
2020 figures Pro forma for acquisition of the Clariant Masterbatch business
T O T A L C O M PA N Y R E G I O N A L S A L E S
B Y E N D M A R K E T
(58% of sales) (26% of sales) (16% of sales)
33
https://www.avient.com/sites/default/files/2023-06/AVNT June IR Conferences w_Non GAAP Recs.pdf
GUIDANCE
( T O TA L C O M PA N Y )
11
$845 $846
Guidance Actual
$125
$134
Guidance Actual
Sales Adjusted EBITDA
(in millions)
$0.55
$0.63
Guidance Actual
Adjusted EPS
(in millions)
Q1 2023 PERFORMANCE VS.
GUIDANCE
( T O TA L C O M PA N Y )
12
14.8%
15.8%
Guidance Actual
Adjusted EBITDA Margin %
Better-than-expected margins
driven by:
• Resilient demand for
composites and sustainable
solutions which improved
mix of higher margin
applications
• Deceleration of raw material
inflation
• Cost reduction activities
Q1 EBITDA BRIDGE
( T O TA L C O M PA N Y )
13
$ millions
CAI:
Price / Mix 19)
Inflation (4)
SEM:
Price / Mix 6)
Inflation (4)
Net Price Benefit 17)
Wage and Energy Inflation (13)
Cost Reductions 8)
FX (6)
Q1 2023 Actual $134)
Adjusted
EBITDA
Q1 2022 Pro Forma $ 176)
Demand (48) • Weak demand
conditions in-line
with previous
expectations
• Pricing continues to
cover inflation of raw
materials, wages
and energy
U.S. & Canada
40%
EMEA
38%
Asia
17%
Latin America
5%
Q1 2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
Consumer
18%
Packaging
23%
Healthcare
7%
Industrial
16%
Building and
Construction
10%
Defense
6%Telecommunications
4%
Energy
5%
END MARKET REVENUE
(1) Total company sales and adjusted EBITDA of $846M and $134M, respectively, include intercompany sales eliminations and corporate costs
$537M $91M
$310M $64M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$134M$846M
(1)
14
Transportation
11%
Q1 2 023 SA LES BY R EGI ON
Y o Y C H A N G E ( E X C L .
Avient Specialty
Formulators
Other Specialty /
Chemical Companies
2023E(%)
37
79
89
83 81
76
73
90
82
77 76 74
70
58
22
A
vi
e
n
t
K
W
R
P
P
G
F
U
L
A
V
Y
R
P
M
F
M
C
C
E
H
X
L
A
S
H
E
C
L
H
U
N
E
M
N
S
C
L
M U LT I P L E E X PA N S I O N
Avient Specialty
Formulators
Other Specialty /
Chemical Companies
Source: Peer data per Bloomberg as of May 31, 2023
Note: Avient reflects 2023 adjusted EBITDA guidance of $530M and closing share price of $36.50.
https://www.avient.com/sites/default/files/2021-09/avnt-q2-2021-earnings-presentation.pdf
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 )
4
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
5
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
6
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
7
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.
ColorWorks innovation centers are specially
designed to foster imagination and enable
creative exploration of innovative solutions
• Focus on customers’ sustainability initiatives
through recyclability and post-consumer
recycled materials for packaging applications
• Supports 8-12% long-term revenue growth
expectations across our sustainable solutions
portfolio
8
2020 Pro forma $870 $69
Sustainable Solutions 66 37% 26
Healthcare 29 20% 7
Composites 12 36% 6
Growth in Asia / LATAM 47 39% 11
Other 190 48% 22
Sub-total $1,214 40% $141
COVID Response Applications (15) (8)
FX Impact 36 4
Synergies 11
Incentives, Travel, Other Employee Costs (26)
2021 Actual $1,235 42% $122
Q2 2021 ORGANIC SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
9
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Sales Growth Rate
Adjusted
Operating
Income$ millions
(1)
10
Q2 2020PF Q2 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)
(44% of total revenue)
(56% of total revenue)
Q2 END MARKET SALES PERFORMANCE
+26%
+38%
+46%
+103%
+51%
+9%
+7%
+67%
Energy Telecom Building &
Construction
Transportation Industrial Healthcare Packaging Consumer
Q2 YEAR-OVER-YEAR EBITDA BRIDGE
Q2 2020 Pro forma $ 106
Demand 69
11
Adjusted
EBITDA$ millions
• Demand impact driven by
growth in sustainable
solutions and consumer
products
• Price increases more than
offset raw material and
supply chain impacts
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(1)
CAI:
Price / Mix 40
Inflation (32)
SEM:
Price / Mix 23
Inflation (18)
Distribution:
Price / Mix 81
Inflation (77)
Net Price Benefit 17
Supply Chain Disruptions (14)
COVID Response Applications (8)
Synergies 11
Incentives, Travel, FX, Other (22)
Q2 2021 Actual $ 159
Q1 2021 Actual $ 161
CAI:
Price / Mix 32
Inflation (22)
SEM:
Price / Mix 15
Inflation (9)
Distribution:
Price / Mix 50
Inflation (48)
Net Price Benefit 18
Supply Chain Disruptions (12)
Demand / Seasonality (6)
Other (2)
Q2 2021 Actual $ 15912
Adjusted
EBITDA$ millions
• Price increases more than
offset raw material and
freight inflation impacts
• Demand impact driven by
Q2 seasonality for the
business
Q1 TO Q2 SEQUENTIAL EBITDA BRIDGE
Q 3 A N D F U L L Y E A R
2 0 2 1 O U T L O O K
$74
$98
2020 2021E
$0.46
$0.68
2020 2021E
ORGANIC GROWTH PROJECTIONS – Q3
( T O TA L C O M PA N Y )
14
Sales Adjusted Operating Income
$925
$1,150
2020 2021E
+ 24%
Adjusted EPS
+ 32% + 48%
(in millions) (in millions)
FULL YEAR GUIDANCE INCREASED
15
Sales Adj.
Operating Income
$3,783
$4,300
2020PF 2021E
Adjusted EPS
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Previous
Guidance
Current
Guidance
$3,783
$4,650
2020PF 2021E
$308
$410
2020PF 2021E
$308
$430
2020PF 2021E
$1.93
$2.80
2020PF 2021E
$1.93
$3.00
2020PF 2021E
(1) (1)(1)
(1)(1) (1)
(in millions) (in millions)
$442
$457
$580
2019PF 2020PF 2021E
$1.74
$1.93
$3.00
2019PF 2020PF 2021E
FULL YEAR 2019 – 2021 ORGANIC GROWTH
( T O TA L C O M PA N Y )
16
Sales Adjusted EBITDA
$3,981
$3,783
$4,650
2019PF 2020PF 2021E
+ 17%
Adjusted EPS
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(1) (1)
(in millions) (in millions)
(1)(1)
+ 31% + 72%
(1) (1)
($ in millions)
2021E Adjusted EBITDA 580$
Free Cash Flow 280$
Total Debt 1,860
Less: Cash (755)
Net Debt 1,105$
2021E Net Debt / Adjusted EBITDA 1.9x
17
BA L A N C E S H E E T
• Acquisition of Magna Colours completed on
July 1 – expands sustainable solutions
portfolio through water-based inks technology
• Deleveraging to 1.9x net debt to adjusted
EBITDA by the end of 2021
• Driven by record adjusted EBITDA
performance and strong free cash flow
generation from asset light business
• Future cash deployment: M&A, opportunistic
share repurchases and balance sheet /
continued leverage reduction
3.5x
2.7x
1.9x
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
S U S TA I NA B I L I T Y F O R A B ET T E R TO M O R ROW
18
• Revenue from sustainable solutions expected to
grow 14% in 2021 as our innovation efforts and
collaboration with customers continues to accelerate
• Investments centered around innovation and global
sustainability megatrends
o Enabling a circular economy – Technologies that
allow for increased use of post-consumer recycled
(PCR) material and improve recyclability of plastics
o Light-weighting – Composites and CAI applications
to reduce weight and material requirements, which
minimize energy and carbon emissions
o Eco-Conscious – Health and human safety
applications as well as Avient’s alternative materials
to replace lead, PVC, halogens, BPA and other less
eco-friendly options
18
2016 2017 2018 2019 2020PF**
Bio-polymers Reduced Energy Use Human Health & Safety
Sustainable Infrastructure VOC Reduction Recycle Solutions
Eco-Conscious Lightweighting
Revenue From Sustainable Solutions* 2016-2020
$405M
$455M
*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 Masterbatch business
$340M
$550M
$790M
18
19
Key Updates
• Includes Clariant Masterbatch performance
• Increases disclosures and ESG data
• Provides performance updates on 2030 Sustainability Goals
• Commits to operational carbon neutrality in 2050 and 100%
renewable energy by 2050 (RE 100)
• Announces Avient’s participation in U.N.
https://www.avient.com/sites/default/files/2021-06/avient-ir-presentation-may-2021-w-non-gaap-recs.pdf
These investments also
consider our global footprint, and we are positioned very well and
strategically from a regional perspective.
12
Growth Drivers
2020
Revenue
($ Millions)
Long-Term
Growth Rate
Sustainable Solutions $ 560 8–12%
Healthcare 555 8–10%
Composites / 5G 212 10%
Growth in Emerging Regions 672 5%
Other (GDP growth) 1,784 2–3%
Pro Forma Avient $ 3,783 6.5%
Q 1 2 0 2 1 P E R F O R M A N C E
U P D AT E
$86
$123
2020PF 2021
$0.53
$0.89
2020PF 2021
Q1 2021 – ORGANIC PERFORMANCE
( T O TA L C O M PA N Y )
14
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
15
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
16
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
17
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% $123
Q1 2021 ORGANIC SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
18
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Sales Growth Rate
Adjusted
Operating
Income$ 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
$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.
Operating Income
$3,783
$4,100
2020PF 2021E
Adjusted EPS
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Previous
Guidance
Current
Guidance
$3,783
$4,300
2020PF 2021E
$308
$360
2020PF 2021E
$308
$410
2020PF 2021E
$1.93
$2.40
2020PF 2021E
$1.93
$2.80
2020PF 2021E
(1) (1)(1)
(1)(1) (1)
(in millions) (in millions)
$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 )
23
Sales Adjusted EBITDA
$3,981
$3,783
$4,300
2019PF 2020PF 2021E
+ 8%
Adjusted EPS
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(1) (1)
(in millions) (in millions)
(1)(1)
+ 27% + 61%
(1) (1)
24
BA L A N C E S H E E T
• Deleveraging to 1.9x net debt to
adjusted EBITDA by the end of
2021
• Driven by record adjusted EBITDA
performance and strong free cash
flow generation from asset light
business
• Future cash deployment: M&A,
opportunistic share repurchases
and balance sheet / continued
leverage reduction
3.5x
2.7x
1.9x
2019PF 2020PF 2021E
Net Debt / Adjusted EBITDA
(1) (1)
($ in m illions)
2021E Adjusted EBITDA 560$
Free Cash Flow 275$
Total Debt 1,860
Less: Cash (800)
Net Debt 1,060$
2021E Net Debt / Adjusted EBITDA 1.9x
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
PEER COMPARISONS
25
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
https://www.avient.com/sites/default/files/resources/Innovation_Day_-_May_2014_0.pdf
VP / President
Global Specialty Engineered Materials
Versaflex™ VDT Thermoplastic Elastomers
Healthcare
Electrical & Electronics
Consumer
1) Anti-Counte rfe iting Solutions
John V.
Strong past performance demonstrates that our strategy and
execution are working
Megatrends and emerging opportunities align with our strengths
Innovation and services provide differentiation, incremental pricing
power, and competitive advantage
Strong and proven management team driving growth and
performance
Addressable market exceeds $40 billion
PolyOne Corporation Page 44
Appendix
Kiosk Summaries
Segments at a Glance
Officer Biographies
PolyOne Corporation Page 45
Anti-Counterfeiting Solutions
Includes formulation and consultative
services to assist manufacturers and
brand owners in positively identifying
their packaging, devices, end
products and raw materials in the field
Protects brand equity – defense
against customer complaints or legal
actions based on erroneous product
identification
Protects consumer welfare –
decrease in potential harm to
consumers, reduction in unwarranted
recall expenses
Secures supply chain integrity –
support for safe expansion into new
geographies
PolyOne Corporation Page 46
Security and Safety Solutions
Polycast™ Bullet Resistant Sheet,
an optically clear, non-yellowing
acrylic, provides ballistics
protection against powerful
weapons
• High-impact resistance that foils
“smash-and-grab” thieves
GlasArmor™ Bullet Resistant
Panels, a UL-listed solution with
superior ballistic resistance yet
weights 75% less than steel panel
• Used in commercial security
applications for business, home,
and governmental facilities
PolyOne Corporation Page 47
3D Printing
Collaborating with customers using
3D printers to create prototypes
and samples
Enables customers to develop and
test their products and innovations
quickly and accurately
3D printing of molds and inserts
allows OEMs to develop and test
new product innovation using their
own equipment and material of
choice, more efficient than
traditional processes
PolyOne Corporation Page 48
Enhanced Ergonomic Technologies
Versaflex™ VDT was developed to
absorb vibration and noise in a
broad range of applications,
including minimally invasive
surgical instruments, electronics,
firearms, archery and automotive
Can be overmolded onto a rigid
substrate without the need for an
adhesive to increase production
efficiencies and profitability
Creates value by:
• Increasing end-user comfort
• Eliminating secondary assembly
• Differentiating end products
PolyOne Corporation Page 49
Sustainable Solutions
reFlex™ Bio-Based Plasticizer non-
phthalate additive used to make
vinyl more flexible
• Derived primarily from soybeans
rather than petroleum
• Certified by USDA BioPreferred®
program
Wilflex™ Oasis Water-Based Inks
satisfy consumer demand for eco-
conscious products
• Long screen life and production-
friendly to improve operational
efficiencies, increase design quality
PolyOne Corporation Page 50
Color and Design Services
First-of-its-kind offering that
supports color and product
development from concept to
reality
Helps brand managers and
designers evaluate color and
design alternatives to:
– accelerate and streamline product
development
– strengthen brand equity
– build marketplace excitement
Enhances product differentiation
Improves efficiency and profitability
PolyOne Corporation Page 51
Metal Replacement Technology
Portfolio of solutions that meet upper
range of performance requirements,
removing barriers to replacing metal
with polymers
Applications include:
• LED heat sinks
• Electronic shielding (EMI/RFI)
• Structural integrity at elevated
temperatures (i.e., large appliances)
• Lead-free radiation shielding (i.e.,
CT scanners)
Creates value by eliminating the
need for machining and secondary
operations, removing weight,
streamlining production and
improving cost efficiencies
PolyOne Corporation Page 52
Medical Device Solutions
Catheters made using NEU™ View
patent-pending technology are
optically translucent, and have
superior contrast under X-ray
(radiopaque) when compared with
alternative catheter materials
Formulations for cardiovascular and
intravascular catheters are
application-specific, incorporating
medical-grade polymers, additives,
color, and healthcare-centric
manufacturing practices
Only commercially available product
that has excellent visibility, both
optically and under X-ray, to bolster
clinician confidence and offer
significant market advantage
PolyOne Corporation Page 53
Consumer Electronics Solutions
Ability to offer multiple technology
solutions on a global basis for this
industry, where many OEMs design in
one region, prototype in another, and
manufacture in yet another
Sustainable / “green” solutions help
customers to differentiate in this
market
New formulations for emerging
wearables market that meet skin
contact requirements and aesthetic
needs
PolyOne Corporation Page 54
Appliances
4%
Building &
Construction
4%
Consumer
17%
Electrical &
Electronics
16%
Healthcare
12%
Industrial
8%
Packaging
7%
Transportation
19%
Wire & Cable
13%
At a Glance
Global Specialty Engineered Materials
2013 Revenues: $0.6 Billion Solutions
2013 Revenue by Industry Segment Expanding Profits
1.1% 1.3%
3.4%
5.1%
9.6%
8.0%
8.6%
9.3%
12-16%
2006 2007 2008 2009 2010 2011 2012 2013 Q1
2014
2015
Operating Income % of Sales
Target
United States
43%
Europe
33%
Canada
2%
Asia
18%
Latin America
4%
11.6%
PolyOne Corporation Page 55
Appliances
2%
Building &
Construction
11%
Consumer
5%
Electrical &
Electronics
6%
Healthcare
7%
Industrial
13%
Packaging
34%
Transportation
10%
Wire & Cable
12%
Target
At a Glance
Global Color, Additives and Inks
2013 Revenues: $0.9 Billion Solutions
Expanding Profits
1.7%
4.6% 5.1%
5.5%
7.2% 8.1%
9.7%
12.2%
12-16%
2006 2007 2008 2009 2010 2011 2012 2013 Q1
2014
2015
Operating Income % of Sales
United States
44%
Europe
37%
Canada
2%
Asia
11%
Latin America
6%
2013 Revenue by Industry Segment
13.8%
PolyOne Corporation Page 56
At a Glance
Designed Structures and Solutions
Solutions 2013 Revenues: $0.6 Billion
Expanding Profits
2.2%
8 - 10%
6.5%
2012 PF Q1 2013 Q1 2014 2015
Operating Income % of Sales
0.2%
Target
United States
96%
Canada
3%
Latin America
1%
Appliances
2%
Building &
Construction
10%
Consumer
11%
Healthcare
6%
Industrial
13%
Packaging
32%
Transportation
26%
2013 Revenue by Industry Segment
PolyOne Corporation Page 57
5.5%
6.9%
3.8% 3.6%
5.5%
4.3%
6.3%
7.2%
2006 2007 2008 2009 2010 2011 2012 2013 Q1
2014
Operating Income % of Sales
At a Glance
Performance Products and Solutions
Solutions
Expanding Profits
2013 Revenues: $0.8 Billion
United States
81%
Europe
1%
Canada
14%
Asia
2%
Latin America
2%
9-12%
Target
2013 Revenue by Industry Segment
Appliances
8%
Building &
Construction
34%
Consumer
4% Electrical &
Electronics
3%
Healthcare
1%Industrial
10%
Packaging
6%
Transportation
16%
Wire & Cable
18%
2015
7.7%
PolyOne Corporation Page 58
2.6%
3.0%
3.5%
4.0%
4.6%
5.6%
6.4%
5.9%
6 - 7.5%
2006 2007 2008 2009 2010 2011 2012 2013 Q1
2014
2015
Operating Income % of Sales
15.3%
46.0%
2006 Q1 2014
At a Glance
Distribution
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and
equity over a 5 quarter period
Solutions 2013 Revenues: $1.1 Billion
ROIC* Expanding Profits
Target
Appliances
5%
Building &
Construction
5%
Consumer
14%
Electrical &
Electronics
5%
Healthcare
24%
Industrial
16%
Packaging
5%
Transportation
23%
Wire & Cable
3%
6.1%
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Versaflex™ Thermoplastic Elastomers
Versaflex™ HC Thermoplastic Elastomers
Versaflex™ TF Adhesive TPEs for Textile Fabrics