https://www.avient.com/sites/default/files/2023-08/AVNT August IR Presentation w NonGAAP Recs%5B40%5D.pdf
&
Canada
64%
36%
Specialty
Engineered
Materials
Color
Additives
and Inks
40%
37%
18%
9% 4% 4%
Building &
Energy Telecom
4
CREATING A WORLD-CLASS
SUSTAINABLE ORGANIZATION
1. 6.5% annualized long term sales
growth leveraging sustainable
solutions, composites, healthcare
and emerging regions
2.
GUIDANCE
12
15.4%
15.9%
Adjusted EBITDA Margin %
Better-than-expected margins
driven by:
• Favorable mix - strong
demand for composite
applications
• Raw material deflation
Q2 EBITDA BRIDGE
13
($ millions)
CAI:
Price / Mix 7)
Deflation 11)
SEM:
Price / Mix 2)
Deflation 6)
Net Price Benefit 26)
Wage and Energy Inflation (10)
Cost Reductions 13)
FX (2)
Q2 2023 Actual $131)
Adjusted
EBITDA
Q2 2022 Pro Forma $ 172)
Demand (68) • Demand conditions vs.
expectations:
LATAM
• Net price benefit remains greater
than wage and energy inflation
• Clariant synergies and reduced
administrative costs
Q2 2023 SEQUENTIAL SALES BY REGION
Q 2 2 0 2 3 v s .
Q 1 2 0 2 3
-8%
+6%
-1%
Flat
14
Total Avient -2.6%
2023 G U IDA N CE
$128
$525
$0.56
$2.40
2023 GUIDANCE
16
$800
$3,280
Sales Adjusted EBITDA Adjusted EPS
(in millions) (in millions)
17
• Focused on working capital
management, restructuring
actions to streamline
operations
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Preserve Free Cash Flow to
maintain net leverage
CASH FLOW / LEVERAGE
($ millions) 2023E
Cash Flow from Operating Activities 320$
Less: CapEx (140)
Free Cash Flow 180$
Adjusted EBITDA 525$
Net Debt / Adjusted EBITDA 3.0x
SUSTAINABILITY AS A GROWTH DRIVER
18
LONG-TERM REVENUE GROWTH DRIVERS
Revenue From Sustainable Solutions* 2016-2022
$340M
$405M
$455M
$550M
$790M
$915M
2016 2017 2018 2019 2020PF** 2021 2022PF***
$1,175M
*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 Color business
***2022 is Pro Forma for the acquisition of Avient Protective Materials and the divestiture of Distribution
60%+
Key Growth
Drivers
Sustainable
Solutions
Composites, Healthcare,
Asia / LATAM
Overlap
Other
(GDP Growth)
Total Company Revenue
SUSTAINABILITY REPORT
2022
• Provides progress on 2030 goals
• Reaffirms commitment to U.N.
https://www.avient.com/sites/default/files/2020-10/luxury-closures-gravi-tech-design-guide-2.0-application-specific.pdf
CHAPTER 1 | APPLICATION SUMMARY
Design Guide 5
GT5200-0013
GT6000-0004
GT7300-0006
GT5200-5003
GT6000-5002
GT7300-5007
Specific
Gravity* 2.0 3.0 2.0 2.5 2.6 2.2
Color
Options* Various Various Black to Grey Black Various Various
Electroplating No Possibly Yes Possibly Possibly Yes
Base
Resin PP PA6 ABS PP PA6 ABS
FDA
Compliant* Yes Yes Yes Yes No Yes
Region
Produced
North
America
North
America
North
America Europe Europe Europe
Full
Name
X GT5200-0013
PT White
X GT6000-0004
PT White
X GT7300-0006
PT Black
GT7300-5003
Black FD
GT6000-5002
EI White 1
GT7300-5007
X2 White FD
*Please contact Avient for additional information
6 Gravi-Tech
CHAPTER 2 | PROCESS SETTINGS
Density Modified Formulations
Gravi-Tech™ polymer-metal composites are high-density materials developed as thermoplastic-
based alternatives to metals.
Figure 6 shows how the
rib creates a thick region within the part.
It
provides additional mixing to the melt, which is
especially helpful when using colorants.
https://www.avient.com/sites/default/files/2024-11/Remafin_ Fiber Colorants for PP-Hygiene Nonwoven-case study snapshot.pdf
Hygiene fiber manufacturer
HYGIENE FIBER
MANUFACTURER
P P N O N W O V E N M U L T I L A Y E R S
• Meet FDA requirements specified by the customer
• Provide technical support including specific color,
processing and molding recommendations
• Deliver the brighter white colorants to make the final
product look whiter and cleaner
• Developed an FDA colorant to meet
customer regulatory specifications
• Provided technical expertise throughout the
design and manufacturing process
• Offered a brighter white color for the final
product
Remafin Fiber Colorants for PP
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/products/polymer-colorants/fiber-colorants/remafin-fiber-colorants
Slide 1: Hygiene fiber manufacturer
https://www.avient.com/sites/default/files/2022-04/Edgetek PKE Processing Guide.pdf
Zone 2 - Center 430° F 470° F 221° C 243° C
Zone 3 - Front 440° F 480° F 227° C 249° C
Nozzle 450° F 480° F 232° C 249° C
MELT & MOLD
TEMPERATURES ENGLISH (°F) METRIC (°C) COMMENTS
Melt Temperature 450° F 480° F 232° C 249° C After processing, always
purge residual PKE
materials with fractional
melt flow HDPE or PP.Mold Temperature 150° F 200° F 66° C 93° C
DRYING
CONDITIONS ENGLISH (°F) METRIC (°C) COMMENTS
Temperature 180° F 82° C
Drying not required.
https://www.avient.com/sites/default/files/resources/Resilience%2520LS%2520Diffuse%2520Comparison%2520Guide_No%2520CP.pdf
PDI) on extruded profiles
2 ASTM D-638
3 ASTM 256
4 ASTM D-648 66 psi, unannealed, 0.125"
5 Savings depends on profile size
and production volume
Acrylite is a registered trademark of
Evonik Performance Materials
Lens Performance
Resilience™ LS
Frost PVC
Acrylite® Satinice
Frost PMMA
Light Transmission1 at 0.060"
(1.5mm)
83% Low Diffusion
78% Medium Diffusion
75% High Diffusion
81% Low Diffusion
Diffusion Half Power Angle (DLD)
26° Low Diffusion
41° Medium Diffusion
58° High Diffusion
26° Low Diffusion
Tensile Strength2
Tensile Modulus2
Tensile Elongation (break)2
7,360 psi
400,000 psi
20%
7,330 psi
330,000 psi
43%
Flammability (UL 94)
V-0 @ 1.5mm
5VA @ 2.0mm
HB @ 1.6mm
Notched Izod Impact (73°F)3 2.3 ft-lb/in 0.6 ft-lb/in
Heat Deflection Temperature4 157°F/69°C 182°F/83°C
UV Stability Good Excellent
Chemical Resistance Excellent Good
Typical Lens Profile Cost 10–15% Savings5 Baseline
1.866.POLYONE
www.polyone.com
Copyright © 2018, PolyOne Corporation.
https://www.avient.com/sites/default/files/2020-08/oncolor-colorants-color-shades-of-nature-product-bulletin-1.pdf
OnColor™ Colorants
Shades of Nature Collection
OnColor™ Colorants – Shades of Nature is a
collection of 10 special effects colorants inspired
by nature.
Formulated using a proprietary process, Shades
of Nature special effects colorants deliver a less
industrial effect, appearing more sustainable and
handcrafted to enable products to make a sensory
connection with consumers.
All color tones can
be customized in virgin or recycled resins of
various types.
https://www.avient.com/sites/default/files/resources/Overmolding_of_Thermoplastic_Elastomers_Engineered_solutions_for_consumer_product_differentiation.pdf
Copolyesters and
6.
Page 6
July 19, 2007
They are usually classified by the service temperature and oil resistance describing their performance as per
ASTMD 2000 classification as in Figure 6.
Figure 6: Typical Classification of TPEs based on ASTM D2000
Figure 7.
https://www.avient.com/sites/default/files/2020-10/tpe-overmold-design-guide.pdf
Figure 6 provides an illustration
of appropriate venting.
6
Figure 5.
Runner system with cold slug well.
6 7
9 10
1112
13
1415
5 6
1314
15
Figure 4.
Figure 6 provides an illustration
of appropriate venting.
6
Figure 5.
https://www.avient.com/center-of-excellence/avient-europe-middle-east-and-africa
Telephone:+202 27 74 70 66
Wschodnia 6,
No:6/1
https://www.avient.com/sites/default/files/2023-03/AVNT Mar 2023 Earnings Presentation.pdf
EPS
$0.14
$2.67
$3.04
TOP-TIER SUSTAINABILITY PERFORMANCE
AND RECOGNITION
Industry Sustainability Standards
90th
percentile
84th
ESG Ratings Performance
1
14
PEOPLE
C U L T U R E I S E V E R Y T H I N G
Community Service
7x Safer
than Industry Average
World-Class Safety
Leadership Development
Over $17 million
raised since 2010
Diversity & Inclusion
15
2022 RE SU LT S
Q4 EBITDA BRIDGE
(PRO FORMA TOTAL COMPANY)
17
$ millions
CAI:
Price / Mix 42
Inflation (20)
SEM:
Price / Mix 14
Inflation (10)
Net Price Benefit 26
Wage and Energy Inflation (13)
Clariant Color Integration Synergies 4
Incentives, Other Employee Costs 21
FX (10)
Q4 2022 $107
Adjusted
Q4 2021 $ 132
Demand (50)
Russia Import Sales (3)
• Demand contraction
especially prevalent in
EMEA and Asia
• Pricing continues to cover
inflation of raw materials,
wages and energy
PROVEN TRACK RECORD OF STRONG AND
IMPROVING FREE CASH FLOW GENERATION
18
• Periods of economic
weakness have driven
higher levels of cash
generation due to
working capital
management
• Anticipate continued
strong free cash flow
generation and
conversion despite
global uncertainty
78% 78% 80% 80% 81%
78%
84% 83%
80%
0%
30%
40%
50%
60%
70%
80%
90%
2014 2015 2016 2017 2018 2019 2020 2021 2022
0
50
100
150
200
250
300
350
400
re
e
as
h
F
lo
w
C
o
n
ve
rs
io
n
re
e
as
h
F
lo
w
FCF $ AVNT FCF Conversion % S&P FCF Conversion %
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA. 2020 is pro forma for Clariant Color and 2022 is pro forma for Avient Protective Materials
$600 $592
$3.02 $3.04
FULL YEAR 2022 PERFORMANCE
(TOTAL COMPANY PRO FORMA)
19
Sales Adjusted EBITDA
$3,712 $3,653
-2%
Adjusted EPS
-1% + 1%
(in millions) (in millions)
(+4% excluding FX) (+5% excluding FX) (+9% excluding FX)
FULL YEAR 2022 SEGMENT PERFORMANCE
20
CAI
$2,402 $2,355
$409 $402
SEM Pro Forma
$1,308 $1,300
$278 $272
(+4% excluding FX)
- 2% -1%
(+5% excluding FX)
- 2%
(+4% excluding FX)
- 2%
(+2% excluding FX)
PRO FORMA FULL YEAR EPS BRIDGE
21
Pro Forma 2021 Adjusted EPS 3.02$
Foreign Currency (0.23)
Russia Import Sales (0.07)
Outdoor High Performance (0.13)
Color, Additives and Inks 0.18
Specialty Engineered Materials 0.24
Corporate Costs / Other 0.03
Pro Forma 2022 Adjusted EPS 3.04$
FULL YEAR EBITDA BRIDGE
(PRO FORMA TOTAL COMPANY)
22
$ millions
CAI:
Price / Mix 247
Inflation (176)
SEM:
Price / Mix 121
Inflation (77)
Net Price Benefit 115
Wage and Energy Inflation (47)
Clariant Color Integration Synergies 23
Incentives, Other Employee Costs 43
FX (34)
Full Year 2022 $592
Adjusted
Full Year 2021 $ 600
Demand (99)
Russia Import Sales (9) • Demand primarily impacted
by China lockdowns, 4th
quarter industrywide
destocking and declining
consumer sentiment
• Pricing outpaced inflation of
raw materials, wages and
energy
2023 G U IDA N CE
$125
$530
$0.55
$2.40
2023 GUIDANCE
24
Sales Adjusted EBITDA
$845
$3,450
Adjusted EPS
(in millions) (in millions)
CASH FLOW / BALANCE SHEET
25
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Restructuring actions to
streamline operations and
improve profitability, primarily
in Europe
($ millions) 2023E
Cash Flow from Operating Activities 350$
Less:
Run-Rate CapEx (110)
CapEx for IT System Upgrade (25)
CapEx for Restructuring (15)
Total CapEx (150)
Free Cash Flow 200$
Adjusted EBITDA 530$
Net Debt / Adjusted EBITDA 2.9x
K E Y G R O W T H D R I V E R S
A N D T R A N S F O R M E D
P O R T F O L I O
GROWTH DRIVERS: PROVEN SUCCESS
27 (1) Pro forma for the acquisition of Avient Protective Materials (APM)
COMPOSITES
$51
$84
$212
$668
HEALTHCARE
$108 $113
$231
$293
8-10%
ASIA/EMERGING REGIONS
$265
$358
$726
$830
$340
$455
$790
$1,175
SUSTAINABLE SOLUTIONS
8-12%
(1) (1)(1)
(Sales in $ millions)
#1 Color Formulator
Dyneema® - World’s Strongest
Fiber™
#1 in Composites applications
for outdoor high performance
#1 in Performance Inks
Customized solutions
140+ PhDs on staff
Rapid development of
innovative products
Extensive patent (2,500+)
portfolio
33% Vitality Index
Better-positioned toward stable,
high-growth end markets
Consumer, packaging,
healthcare and defense comprise
nearly 60% of sales
Agnostic to raw materials,
helping all customers achieve their
goals
Broad portfolio of diversified
sustainable solutions
90%+ of our innovation pipeline
invested in sustainable solutions
Long-term growth rate well
above GDP with expectations of
8-12%
LEVERAGING OUR TRANSFORMED PORTFOLIO
28
Building &
4% Telecom.
2022 PF
$3.65B
sales
Leading Positions Sustainable SolutionsDiversified IndustriesSpecialty Formulator
(1) 2022 Pro forma for the acquisition of Avient Protective Materials
(2) 2020 Pro forma for the acquisition of Clariant Color
(1)(2)
$340M
$455M
$790M
2016 2018 2020PF 2022PF
$1,175M
P EE R C O M PAR IS O N S
AVIENT IS ASSET LIGHT
Capex / Revenue
2023E (%)
Avient Specialty
Other Specialty /
Note: Avient reflects 2023 estimated revenue of $3,450 and estimated run-rate CAPEX of $110M.
30
2
4 4
5 5 5
6
7 7
FREE CASH FLOW CONVERSION
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
Avient 2011 and 2018 valuations reflect trailing 12 months EBITDA at December 31 of the respective years.
32
EV / 2023E EBITDA
Historic Multiple
6.5
8.3
10.0
15.6
13.9 13.7
12.8
9.5
18.0 17.5
12.3
10.2 9.7
8.8 8.4
5.9
(2
01
1)
(2
01
8)
RA W M AT ER IA L
OVE RV IE W
34
RAW MATERIAL 2022 ANNUAL PURCHASES
Performance
Additives
16%
Pigments
TiO2
Dyestuffs
2%
Polyethylene
Nylon
Polypropylene
Styrenic Block
Copolymer
Other Raw
Materials
30%
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
Excludes Avient Protective Materials
SEGMENT DATA
U.S. & Canada
40%
37%
18%
Latin America
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
Building and
END MARKET REVENUE
(1) Total company adjusted EBITDA of $592M includes corporate costs
$2,355M $402M
$1,300M $272M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$592M$3,653M
36
C O L O R , A D D I T I V E S & I N K S
2022 REVENUE | $2 .4 B ILL ION
US & Canada
34%
38%
Latin America
END MARKET REGION
37
34%
21%
Building &
1% Energy
2%
S P E C I A LT Y E N G I N E E R E D M AT E R I A L S
2022 PRO FORMA REVENUE | $1 .3 B ILL ION
END MARKET
US & Canada
52%
35%
REGION
38
19%
8%Industrial
16%
Building &
32%
27%
14%
Building &
3%
1% Defense
1%
(18% of sales)
2022 PROFORMA AVIENT REGIONAL SALES
BY END MARKET
27%
14%
17%
Building &
(37% of sales)Transportation
Building &
US &
Canada
(40% of sales)
7%
56%
23%
7%
Building &
1%
LATAM
(5% of sales)
3%
39