Use of Non-GAAP Measures This presentation includes the use of both GAAP (generally accepted accounting principles) and non-GAAP financial measures. Senior management also uses operating income before special items to assess performance and allocate resources because senior management believes that these measures are useful in understanding current profitability levels and how it may serve as a basis for future performance. The presentation of these measures may be different from non-GAAP financial measures used by other companies.

We completed the acquisition of APM and the sale of our Distribution business, and are using the net proceeds to pay down near- term maturing debt as previously announced.” Avient's chief operating decision maker uses this financial measure to monitor and evaluate the ongoing performance of the Company and each business segment and to allocate resources. In addition, operating income before the effect of special items is a component of Avient annual and long-term employee incentive plans and is used in debt covenant computations.

Lastly, our design capabilities ensure that the application is designed perfectly for the specific end use. Senior management also uses operating income before special items to assess performance and allocate resources because senior management believes that these measures are useful in understanding current profitability levels and how it may serve as a basis for future performance. The presentation of these measures may be different from non-GAAP financial measures used by other companies.

They use words such as “will,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with any discussion of future operating or financial condition, performance and/or sales. Avient's chief operating decision maker uses these financial measures to monitor and evaluate the ongoing performance of the Company and each business segment and to allocate resources. In addition, operating income before the effect of special items is a component of Avient annual and long-term employee incentive plans and is used in debt covenant computations.

Senior management also uses operating income before special items to assess performance and allocate resources because senior management believes that these measures are useful in understanding current profitability levels and how it may serve as a basis for future performance. EBITDA and Adjusted EBITDA are non-GAAP financial measures that management uses in evaluating operating performance. The presentation of these measures may be different from non-GAAP financial measures used by other companies.

They use words such as “will,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with any discussion of future operating or financial condition, performance and/or sales. Avient's chief operating decision maker uses these financial measures to monitor and evaluate the ongoing performance of the Company and each business segment and to allocate resources. In addition, operating income before the effect of special items is a component of Avient annual and long-term employee incentive plans and is used in debt covenant computations.

They use words such as “will,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with any discussion of future operating or financial condition, performance and/or sales. Three Months Ended Year Ended Sales: Color, Additives and Inks $ 525.8 $ 226.7 $ 1,502.9 $ 1,003.8 Specialty Engineered Materials 190.6 177.5 708.8 745.7 Distribution 305.1 272.4 1,110.3 1,192.2 Corporate and eliminations (24.5) (18.0) (79.9) (79.0) Sales $ 997.0 $ 658.6 $ 3,242.1 $ 2,862.7 Gross margin: Color, Additives and Inks $ 164.3 $ 73.9 $ 484.4 $ 338.4 Specialty Engineered Materials 59.1 47.7 207.6 200.2 Distribution 32.4 31.0 124.0 132.1 Corporate and eliminations (2.9) 0.7 (31.7) (13.5) Gross margin $ 252.9 $ 153.3 $ 784.3 $ 657.2 Selling and administrative expense: Color, Additives and Inks $ 106.8 $ 46.7 $ 303.6 $ 191.0 Specialty Engineered Materials 28.7 28.9 113.2 116.5 Distribution 14.4 14.0 54.5 56.7 Corporate and eliminations 38.0 43.2 123.7 136.2 Selling and administrative expense $ 187.9 $ 132.8 $ 595.0 $ 500.4 Operating income: Color, Additives and Inks $ 57.5 $ 27.2 $ 180.8 $ 147.4 Specialty Engineered Materials 30.4 18.8 94.4 83.7 Distribution 18.0 17.0 69.5 75.4 Corporate and eliminations (40.9) (42.5) (155.4) (149.7) Operating income $ 65.0 $ 20.5 $ 189.3 $ 156.8 11 Attachment 7 Reconciliation of Non-GAAP Financial Measures (Unaudited) Senior management uses gross margin before special items and operating income before special items to assess performance and allocate resources because senior management believes that these measures are useful in understanding current profitability levels and how it may serve as a basis for future performance. In addition, operating income before the effect of special items is a component of Avient annual and long-term employee incentive plans and is used in debt covenant computations.

We used the incremental cash to pay down debt in December and ended the year with net debt to adjusted EBITDA leverage of 2.9x, below prior guidance of 3.1x.” Non-GAAP Financial Measures The Company uses both GAAP (generally accepted accounting principles) and non-GAAP financial measures. In addition, operating income before the effect of special items is a component of Avient annual and long-term employee incentive plans and is used in debt covenant computations.

Conference call participants in the question and answer session should pre-register using the link at avient.com/investors, or here, to receive the dial-in numbers and personal PIN. Avient's chief operating decision maker uses these financial measures to monitor and evaluate the ongoing performance of the Company and each business segment and to allocate resources. In addition, operating income before the effect of special items is a component of Avient's annual incentive plans and is used in debt covenant computations.

Conference call participants in the question and answer session should pre-register using the link at avient.com/investors, or here, to receive the dial-in number and personal PIN. Avient's chief operating decision maker uses these financial measures to monitor and evaluate the ongoing performance of the Company and each business segment and to allocate resources. In addition, operating income before the effect of special items is a component of Avient's annual incentive plans and is used in debt covenant computations.