https://www.avient.com/sites/default/files/2021-03/avient-march-ir-fermium_0.pdf
These investments also
consider our global footprint, and we are positioned very well and
strategically from a regional perspective.
8
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%
2020 PE RF O RM AN CE
2020 HIGHLIGHTS
10
• Completed transformational Clariant Masterbatch acquisition and created new
brand name Avient
• Increased pro forma adjusted EPS 11% from $1.74 to $1.93 as an essential supplier
during the pandemic and due to growth in demand for consumer applications
• Specialty Engineered Materials delivered record operating income on gains from
composites
• Achieved record free cash flow, increased dividend for 10th year in a row and
delevered from 3.5x to 2.7x net debt to pro forma adjusted EBITDA
• Culture is everything: Certified as a Great Place to Work®
$133
$150
2019PF 2020PF
23%8%
21%
2006 2020PF
Avient Portfolio Transformation
22%
59%
CLARIANT MASTERBATCH:
TRANSFORMATIONAL ACQUISITION
11
Clariant MB EBITDA Growth
Purchase Price Multiple
10.8
9.6
6.5
2019PF 2020PF 2020PF w/ Full
Synergies
• Acquisition of Clariant Masterbatch
significantly expands presence in
healthcare, packaging and consumer end
markets
• Strength of portfolio – 13% EBITDA growth
as an essential supplier in COVID response
and recovery
• Acquisition completed on July 1, 2020 for
$1.4 billion.
Purchase price multiple rapidly
declining on strength of business and
synergy capture
(1) (1) (1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
($ in millions)
12
SEM
CAI
Avient
• Composites and Outdoor High Performance
applications drove positive mix within SEM
• Clariant Masterbatch synergy realization under
way and expected to drive further margin
expansion in 2021
• Portfolio transformation to high growth end
markets with focus on sustainable solutions
megatrend
EBITDA MARGIN EXPANSION
Distribution
15.2%
17.6%
11.1%
12.1%
6.4% 6.3%
15.2%
16.2%
(2)
(2) Total company reflects adjusted EBITDA margins
SPOTLIGHT: COMPOSITES
13
• SEM delivers a record year in 2020 – 13%
operating income growth and over 200 bps
in margin expansion year-over-year
• Prior investments in composites platform
and outdoor high performance applications
paying off, resulting in substantial growth
over the last two years
SEM
Operating
Income
(OI % of Sales)
($ in millions)
$(0.1) $(1.0)
$2.2
$19.1
$26.8
2016 2017 2018 2019 2020
Composites
Performance
(Operating Income)
$83.7
$94.4
2019 2020
(11.2%)
(13.3%)
0.1 0.1
0.2
0.5
0.6
0.7
0.8
0.9
0.9 1.0
11 12 13 14 15 16 17 18 19 20
$19
$160
$338
2011 2019 2020
0.16
0.20
0.26
0.34
0.42
0.50
0.58
0.72
0.79 0.81
0.85
11 12 13 14 15 16 17 18 19 20 21E
FREE CASH FLOW AND CAPITAL ALLOCATION
14
Free Cash Flow Dividends Share Repurchases Deleveraging
3.5x
2.7x
2019PF 2020PF
Growing Dividend Cumulative Buybacks Net Leverage
$B
n
$
p
e
r
sh
ar
e
Cash Generation
~$1Bn
REPURCHASED
OVER LAST 10 YEARS
~$350MM
PAID OVER LAST 10 YEARS
~$338MM 2.7x
NET LEVERAGE
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
GREAT PLACE TO WORK!
15
2021 O U TLO O K
A S P R O V I D E D O N F E B R U A R Y 9 , 2 0 2 1
W E B C A S T
Synergies
($ 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
CLARIANT INTEGRATION &
COST SYNERGIES UPDATE
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
$0.53
$0.70
ORGANIC GROWTH PROJECTIONS – Q1
18
Sales Adjusted Operating Income
$991
$1,090
+ 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
$1.93
$2.40
ORGANIC GROWTH PROJECTIONS – FULL YEAR
19
Sales Adjusted Operating Income
$3,783
$4,100
+ 8%
Adjusted EPS
+ 17% + 24%
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(in millions) (in millions)
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% $360
2021 ORGANIC SALES AND OPERATING INCOME
20 (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(2) COVID Response Applications: facemasks, personal protective equipment
Sales Growth Rate
Adjusted
Operating
Income$ millions
(2)
CASH FLOW AND LEVERAGE
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) 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.
https://www.avient.com/resources/safety-data-sheets?page=5265
EPIC PFXAB PANTONE(R) COOL GRAY 11 C SIM
https://www.avient.com/products/engineered-polymer-formulations/general-engineered-formulations/gravi-tech-density-modified-formulations
Customized density with a wide range of specific gravities (1.2 - 11 gm/cm3)
https://www.avient.com/resources/safety-data-sheets?page=4105
Geon(TM) MNE31-11-1 LAM ADH
https://www.avient.com/news/polyone-announces-ceo-succession
March 11, 2014
https://www.avient.com/knowledge-base/article/overmolding-processing
Feb 11, 2025
https://www.avient.com/knowledge-base/article/overmolding-processing?rtype[]=1164
Feb 11, 2025
https://www.avient.com/sites/default/files/2022-08/ISO9001-2015 EN -EM.pdf
Zwolseweg 1, 2994 LB, Barendrecht, Netherlands - TEL: +31(0)102922689. www.dnv.com/assurance
Certificate No:
2997-2006-AQ-RGC-RvA
Initial certification date:
08 June, 2006
Valid:
11 April, 2022 – 11 April, 2025
This is to certify that the management system of
Polyone - Suzhou, China
EM Sector, 77 Shenggang Street, Suzhou Industrial Park, Suzhou, Jiangsu, China,
215024
and the sites as mentioned in the appendix accompanying this certificate
has been found to conform to the Quality Management System standard:
GB/T 19001-2016/ISO 9001:2015
This certificate is valid for the following scope:
Design and Manufacture of Plastic Compounding Material
Certificate No: 2997-2006-AQ-RGC-RvA
Place and date: Shanghai, 27 April, 2022
Lack of fulfilment of conditions as set out in the Certification Agreement may render this Certificate invalid.
https://www.avient.com/sites/default/files/2022-04/Sustainable Material Answers_ Circular Economy 2022.pdf
Solutions that
Support the
Circular Economy
REDUCED ENERGY USE
CESA™ Dry Additives
CESA™ Release Additives
OnCap™ CTR Process Optimization
ColorMatrix™ Joule™ & Smartheat™ Infrared Absorber
Specialty Low Cure Inks
SiteCool™ Infrared Absorption Technologies
BIO-DERIVED CONTENT
reSound™ OM Bio-Derived Thermoplastic Elastomers
reFlex™ Bio-Derived Plasticizer
OnCap™ Bio Additives
OnColor™ Bio Colorants
reSound™ Natural Fiber Reinforced Formulations
LIGHTWEIGHTING
Glasforms™ Pultrusion Technologies
Polystrand™ Continuous Fiber Composites
IMPROVED RECYCABILITY
CESA™ IR Black Additives
CESA™ Extend Additives
ColorMatrix™ Lactra™ SX Light Blocking Additive for PET
ColorMatrix™ Ultimate™ UV Light Barrier
ColorMatrix™ Capture™ Oxygen Scavenger for PET
ColorMatrix™ Triple A™ Acetaldehyde Scavenging Additives
ColorMatrix™ Reprize™ IV Builder for PET
OnColor™ IR Sortable Black for Recyclable Packaging
Bergadur™ Post-Industrial Recycled Content Polyester
Formulations
Nymax™ PIR Post-Industrial Recycled Nylon Formulations
Maxxam™ FR Flame Retardant Polyolefin Formulations
Predictions
Gartner predicts circular economies will replace linear economies in 10 years,
noting that supply chain leaders must adapt to circular models in order to
keep up in a marketplace with a growing emphasis on sustainability.
https://www.avient.com/sites/default/files/2022-11/AVNT Q3 2022 Earnings Presentation - Website Final.pdf
END MARKET FOCUS ON LESS CYCLICAL
INDUSTRIES
11
14.8%
17.6%
21.0%
2018 2020 2022 PF
1.8%
2006
15.3%
16.2%
17.0%
2018PF 2020PF 2022E
CAI
2.7%
2006
SEM
SPECIALTY EBITDA MARGIN EXPANSION
12
• Portfolio transformation
accelerates growth in less
cyclical, higher margin end
markets
• Investments in our
composites platform
continue to drive margin
expansion
(1) (1)
(1) 2018 and 2020 financial information is pro forma to include a full year of Clariant Color acquisition
PORTFOLIO EVOLUTION OVER THE YEARS
13
Adj.
EBITDA Margins
• Focus on organic growth
combined with transformative
and bolt-on acquisitions
• Divested commodity businesses
tied to more cyclical end markets
• Expanded presence in high
growth areas of sustainable
solutions, specialty healthcare
applications, composites and
more resilient end markets
5.4%
11.5%
16.1%
2006 2018 2022PF
$142
$408
$585
2006 2018 2022PF
2006 figures exclude joint venture results
14
RETURNING CASH TO SHAREHOLDERS
Growing Dividend
0.1 0.1
0.2
0.5
0.6
0.7
0.8
0.9
0.9
1.0 1.0 1.0
11 12 13 14 15 16 17 18 19 20 21 22
0.16
0.20
0.26
0.34
0.42
0.50
0.58
0.72
0.79 0.81
0.85
0.95
0.99
11 12 13 14 15 16 17 18 19 20 21 22 23
~$1Bn
REPURCHASED
OVER LAST 11 YEARS
~$550MM
PAID OVER LAST 11 YEARS
Dividends Share Repurchases
Cumulative Buybacks
$B
n
$
p
e
r
sh
ar
e
2022 PRO FORMA
ADJUSTED EPS
Earnings Growth
Expanding Profitability
$0.15
$1.09
$2.08
$2.67
2009 2012 2015 2018 2022PF
T H IR D Q UART ER 2022
RE S U LTS
$110
$119
$0.61
$0.59
Q3 2022 PERFORMANCE
(TOTAL COMPANY CONT.
OPS)
16
Sales Adjusted EBITDA
$818 $823
+ 1%
Adjusted EPS
+ 8% - 3%
(in millions) (in millions)
(+ 9% excluding FX) (+ 18% excluding FX) (+ 5% excluding FX)
Q3 EBITDA BRIDGE
(PRO FORMA TOTAL COMPANY)
17
Price increases more than
offset raw material and
supply chain impacts
$ millions
CAI:
Price / Mix 68
Inflation (44)
SEM:
Price / Mix 41
Inflation (26)
Net Price Benefit 39
Wage and Energy Inflation (14)
Clariant Color Integration Synergies 6
Incentives, Other Employee Costs 14
FX (11)
Q3 2022 $137
Adjusted
Q3 2021 $ 142
Demand (39)
Q3 2022 SEGMENT PERFORMANCE
18
CAI
$587
$566
Sales
$93 $93
SEM Pro Forma
$326 $319
Sales
$70
$62
(+ 4% excluding FX)
- 4% - 2%
(+ 5% excluding FX)
Flat
(+ 7% excluding FX)
- 11%
(- 7% excluding FX)
$500
$585
$2.60
$2.95
FULL YEAR 2022 GUIDANCE
19
Sales Adjusted EBITDA
$3,375
$3,635
Adjusted EPS
(in millions) (in millions)
20
SUMMARY
• Executed the plans we laid out earlier this year
• Completed the Dyneema acquisition and Distribution divestiture
amid challenging market conditions
• Paid down debt and expect to finish the year modestly levered at
3.1x net debt to 2022 pro forma adjusted EBITDA
• Expect $200 million of free cash flow in 2022
• Entering an economic slowdown with a portfolio that is better
positioned than ever before
• Updated our EPS guidance to $2.60 from continuing operations
SEGMENT DATA
U.S. & Canada
Latin America
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
21%
Building and
END MARKET REVENUE
(1) Total company adjusted EBITDA of $585M includes corporate costs.