https://www.avient.com/sites/default/files/2024-02/AVNT Q4 2023 Earnings Presentation_For Website_with Non-GAAP.pdf
PY
$790
$719
$107
$114
Sales Adjusted EBITDA
$0.42
$0.52
Adjusted EPS
- 9% + 7% + 24%
Sales Adjusted EBITDA Adjusted EPS
13
Q4 2023 SEGMENT PERFORMANCE
14
CAI
$491
$459
Sales
$70
$84
SEM
$301
$260
Sales
$55
$49
- 7% - 14%+20% - 11%
Q4 EBITDA BRIDGE
15
$ millions
CAI:
Price / Mix 11
Deflation 14
SEM:
Price / Mix 4
Deflation 9
Net Price Benefit 38
Cost Reductions 13
Wage Inflation (8)
Other (2)
Q4 2023 $114
Adjusted
Q4 2022 $ 107
Demand (34) • Demand was down, but less than in previous
quarters, due to slowing pace of destocking
• Positive net price benefit:
o CAI – Pricing flat with favorable mix from
uptick in packaging and consumer end
markets and raw material deflation
o SEM - Pricing flat with favorable mix from
Composites and raw material deflation
• Cost reductions primarily driven by reduced
administrative costs and cost synergies
2 0 2 4 G U I DA N C E
2024 GUIDANCE
Full Year 2024 Guidance
Adjusted EBITDA $505 to $535 million
Adjusted EPS $2.40 to $2.65
Interest Expense $105 to $110 million
Adjusted Effective Tax Rate 23% to 25%
Capital Expenditures ~$140 million
17
Q1 Adjusted EPS of $0.68
A P P E N D I X
20
Performance
Additives
15%
Pigments
TiO2
Dyestuffs
Polyethylene
10%Nylon
Polypropylene
Styrenic Block
Copolymer
Other Raw
Materials
38%
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
RAW MATERIAL BASKET
SEGMENT DATA
U.S. & Canada
41%
36%
2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
19%
23%Industrial
Building and
END MARKET REVENUE
$2,007M $358M
$1,138M $224M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$502M$3,143M
(1)
22
(1) Total company sales and adjusted EBITDA of $3,143M and $502M, respectively, include intercompany sales eliminations and corporate costs
2023 REVENUE | $2 .0 BILLION
34%
37%
21%
END MARKET REGION
23
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 BILLION
52%
35%
24
6%Industrial
12%
10% Defense
Building &
END MARKET REGION
SPECIALTY ENGINEERED MATERIALS
32%
26%
Building &
6%
2% Defense
1%
(18% of sales)
2023 AVIENT REGIONAL SALES
25%
Building &
(36% of sales)Transportation
22%
Building &
12%
6%
US &
Canada
(41% of sales)
59%
22%
Building &
LATAM
(5% of sales)
25
BY END MARKET
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Dollars in millions, except for per share data)
Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders
and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special
items, to assess performance and facilitate comparability of results.
Three Months
Ended Year Ended
Reconciliation of Pro Forma Adjusted Earnings per Share December 31, 2022
Net (loss) income from continuing operations attributable to Avient
shareholders $ (17.0) $ 82.8
Special items, after tax 38.3 116.2
Amortization expense, after-tax 14.6 49.0
Adjusted net income from continuing operations excluding special
items 35.9 248.0
Pro forma adjustments* 2.5 13.6
APM pro forma amortization expense, after-tax* — 19.1
Pro forma adjusted net income from continuing operations attributable
to Avient shareholders $ 38.4 $ 280.7
Weighted average diluted shares 91.7 92.2
Pro forma adjusted EPS - excluding special items pro forma for APM
acquisition $ 0.42 $ 3.04
* Pro forma adjustment to reflect APM results for the period before Avient ownership including the impacts of debt financing and paydown of
debt with net proceeds from the Distribution sale.
2
Three Months Ended
Year Ended
2023 2022 2023 2022
Sales:
Color, Additives and Inks $ 459.4 $ 490.8 $ 2,007.4 $ 2,355.0
Specialty Engineered Materials 259.8 300.8 1,138.2 1,044.4
Corporate (0.2) (1.2) (2.8) (2.5)
Sales $ 719.0 $ 790.4 $ 3,142.8 $ 3,396.9
Operating income:
Color, Additives and Inks $ 61.8 $ 44.3 $ 259.9 $ 301.0
Specialty Engineered Materials 29.4 35.2 142.5 140.1
Corporate (48.1) (79.1) (205.6) (197.8)
Operating income $ 43.1 $ 0.4 $ 196.8 $ 243.3
Other expense, net: $ 4.3 $ (28.4) $ 5.8 $ (59.7)
Depreciation & amortization:
Color, Additives and Inks $ 22.2 $ 25.2 $ 98.3 $ 101.3
Specialty Engineered Materials 19.8 20.3 81.5 48.7
Corporate 2.2 3.1 9.0 12.5
Depreciation & amortization $ 44.2 $ 48.6 $ 188.8 $ 162.5
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 84.0 $ 69.5 $ 358.2 $ 402.3
Specialty Engineered Materials 49.2 55.5 224.0 188.8
Corporate (45.9) (76.0) (196.6) (185.3)
Other expense, net $ 4.3 $ (28.4) $ 5.8 $ (59.7)
EBITDA $ 91.6 $ 20.6 $ 391.4 $ 346.1
Special items in EBITDA 22.3 86.8 110.4 162.5
EBITDA - excluding special items $ 113.9 $ 107.4 $ 501.8 $ 508.6
APM pro forma adjustments - 8 months 2022* — — — 83.1
Pro forma EBITDA $ 113.9 $ 107.4 $ 501.8 $ 591.7
* Pro forma adjustment for January - August 2022 APM results (period before Avient ownership).
3
AVNT Q4 2023 Earnings Presentation_For Website_with Non-GAAP.pdf
AVNT Q4 2023 Earnings Presentation_For Website.pdf
IR Deck - AVNT-2023.12.31 (2.12.24 9PM Milestone February 12 0905 pm).pdf
Attachment
Non-GAAP Update.pdf
https://www.avient.com/sites/default/files/2021-07/avient-human-rights-position-statement-updated-july-2021.pdf
Environment, Health and Safety.
Our health and safety policies,
Avient Corporation
33587 Walker Road
Avon Lake, OH 44012
2
which apply to all Avient associates, are to safeguard the health and well-being of each person while at
work.
We prioritize stakeholder engagement and discussion related to
implementation of our human rights policy, particularly as it pertains to employee and environmental
safety.
https://www.avient.com/sites/default/files/2024-10/Avient Human Right Policy - July 2024.pdf
Environment, Health and Safety.
Our health
and safety policies, which apply to all Avient associates, are to safeguard the health and well-
being of each person while at work.
We prioritize stakeholder engagement and discussion related
to implementation of our human rights policy, particularly as it pertains to employee and
environmental safety.
https://www.avient.com/sites/default/files/2020-07/entry-door-1-page-case-study.pdf
Entry door 1-page case study
EXTERIOR DOORS
R E S I D E N T I A L & C O M M E R C I A L
Reinforcement of steel to reduce weight and provide:
• Corrosion resistance
• Improved dent resistance to withstand windborne debris
• Structural performance to meet regional wind load
requirements
• Improved resistance to corrosion and
moisture degradation
• Increased dent resistance up to 60% vs.
unreinforced metal
• Enabled reduction in thickness of sheet
metal while maintaining structural
performance
Polystrand™ PETG continuous fiber
reinforced composite laminate thermally
bonded to steel door skin
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2023-05/Mesa Pool Colorants Brochure 2023.pdf
MESA™
Pool Colorants
COLOR SELECTOR
MESA™ POOL COLORANTS PROVIDE STRIKING,
CONSISTENT COLOR that can be relied on for
a beautiful, lasting finish in any pool.
With an
abundance of primary colors readily available,
a dedicated lab team is also on hand to formulate
custom colors for your desired look and feel.
Mesa Pool Colorants bring nature to life in finishes
that withstand harsh water chemistry and
beautifully maintain their color stability under
normal water conditions.
https://www.avient.com/knowledge-base/article/developing-your-esg-framework
A guide for describing, evaluating, and reporting environmental, social, and governance (ESG) data
Typically, environmental metrics are focused on the operational risk of raw material suppliers and polymer manufacturers – and the impact those products have on the planet.
Social issues: generally involve the workplace safety of employees and community engagement.
https://www.avient.com/knowledge-base/article/developing-your-esg-framework?sust[]=1133
A guide for describing, evaluating, and reporting environmental, social, and governance (ESG) data
Typically, environmental metrics are focused on the operational risk of raw material suppliers and polymer manufacturers – and the impact those products have on the planet.
Social issues: generally involve the workplace safety of employees and community engagement.
https://www.avient.com/sites/default/files/2023-10/31307-Certificate-20SEP2023.pdf
Glendale, AZ 85307
Activity: Design and Manufacture of Colorants for Plastics Activity: Manufacture of Colorants for Plastics
Facility: Avient Corporation - Kennesaw, GA
8155 Cobb Center Drive
Kennesaw, GA 30152
Facility: Avient Corporation - LaPorte, IN
707 Boyd Blvd
LaPorte, IN 46350
Activity: Design and manufacture of specialty inks and specialty coatings.
Wischodnia 6
Kutno 99-300
Poland
Activity: Design and Manufacture of Color and Additive Concentrates and
Activity: Design and Manufacture of Color and Additive Concentrates and
Facility: Avient Corporation - Berea, OH
680 N.
Rocky River Drive
Berea, OH 44017
Facility: Avient Corporation - Assesse, Belgium (CAI & SEM)
2 Rue Melville Wilson
Assesse 5330
Belgium
Activity: Liquid Colorants and Additives for Plastics Activity: "Design of color concentrates, precolors, and compounds for
fluoropolymer and high temperature polymers, LSFOH (low
smoke and fume, zero halogen compounds), and Specialty
Compounds
Manufacture of Color and Additive Concentrates and Specialty
Compounds"
Page 6 of 7
Facility: Avient Corporation - Aland (Odkarby), Finland
Kroklundsvagen 346
Ödkarby AX-22320
Finland
Facility: Avient Corporation - Bethel, CT
19 Francis J Clark Circle
Bethel, CT 06801
Activity: Manufacture of colorants and compounds for fluoropolymer and
high temperature polymers
Activity: Design and Manufacture of colorants and compounds for
fluoropolymer and high temperature polymers.
https://www.avient.com/content/sds-iso-reach-rohs-ul
https://www.avient.com/sites/default/files/2024-03/Maxxam BIO Difas Toothbrush Application Snapshot.pdf
DIFAS
T O O T H B R U S H H A N D L E
• Replace current polymer with a more sustainable solution
• Excellent surface finish with multiple color options
• Processed using current molding equipment and
machinery
• Used formulation expertise to develop a custom
formulation that met critical quality parameters
and enabled customer to use existing molding
equipment
• Enabled customer to work towards sustainability
goals and bring a competitive solution to the
market
• Enhanced the marketplace appeal of the end
product with colorability of the material
Maxxam BIO Bio-based Polyolefin
Formulations
KEY REQUIREMENTS
WHY AVIENT?
AVIENT SOLUTION
SUSTAINABILITY + AESTHETIC
LEARN MORE
© 2024, Avient Corporation, All Rights Reserved
https://www.avient.com/products/engineered-polymer-formulations/sustainable-formulations/maxxam-bio-bio-based-polyolefin-formulations
DIFAS