https://www.avient.com/knowledge-base/case-study/medical-hose-manufacturer-boosts-productivity-specialized-material?pname[]=10729
Ultimately, the transition to the GLS TPV proved to be a smooth one for the manufacturer.
https://www.avient.com/sites/default/files/2022-06/2021_CDP Supplier Engagement Rating_Avient.pdf
Leadership (A/A-): Implementing current best practices
Management (B/B-): Taking coordinated action on supplier engagement
Awareness (C/C-): Knowledge of impacts of supplier engagement
Disclosure (D/D-): Transparent about supplier engagement
UNDERSTANDING YOUR SCORE REPORT
Avient
Region North America
Country United States of America
Questionnaire Chemicals
Activity Group Trading, wholesale, distribution, rental &
leasing
CDP evaluates organizations engagement with
their suppliers on climate change.
By evaluating
supplier engagement and recognizing best
practice, CDP aims to accelerate global action
on supply chain emissions.
https://www.avient.com/investor-center/news/polyone-announces-appointment-woon-keat-moh-vice-president-asia
In 2014 he was again promoted to serve as general manager of Engineered Materials Asia, and later added the company's regional thermoplastic elastomer business to his responsibilities.
Moh holds a bachelor's of science in Engineering from the
SEARCH INVESTOR NEWS
https://www.avient.com/news/polyone-highlights-new-geon-cellular-vinyl-plastics-extrusion-world-expo
The family of Geon Cellular Vinyl formulations are engineered specifically for interior building and construction applications and include a proprietary technology that alleviates separation and consistency issues found with typical cellular PVC dry blends.
Plenstarä Vinyl Grades: designed for plenum applications and engineered to meet performance needs for telecommunication cables
SEARCH INVESTOR NEWS
https://www.avient.com/news/polyone-launches-natural-fiber-reinforced-solutions-brilliant-colors
While the automotive industry has responded well to reSound NF, which was introduced earlier this year, we have seen significant interest in these strong, lightweight solutions from manufacturers in consumer and other industries,” said Holger Kronimus, VP Europe and general manager, PolyOne Specialty Engineered Materials.
Introduced this year in March, reSound NF composites feature an engineered natural fiber reinforcement.
SEARCH INVESTOR NEWS
https://www.avient.com/news/avient-expands-production-nymax-rec-recycled-nylon-formulations-istanbul
Expanding production of these grades to Istanbul, using locally sourced recycled content, means we can offer Turkish and Middle Eastern countries these REACH-compliant solutions while helping to reduce the environmental impact of transporting these materials,” said Matt Mitchell, Director, Global Marketing of Specialty Engineered Materials at Avient.
Our expanding portfolio of offerings includes colorants, advanced composites, functional additives, engineered materials, and Dyneema®, the world’s strongest fiber™.
SEARCH INVESTOR NEWS
https://www.avient.com/news/polyone-eco-conscious-solutions-help-schneider-electric-achieve-sustainability-goals
FISCHBACH, Luxembourg – PolyOne Corporation today announced that advanced, halogen-free material solutions are helping Schneider Electric to engineer better product performance, improve efficiency and strengthen its globally recognized sustainability strategy.
This project highlights Schneider as a leader in eco-conscious design, and demonstrates the importance of materials that reinforce these efforts while maximizing production efficiency,” commented Holger Kronimus, vice president Europe and general manager, Specialty Engineered Materials, Europe at PolyOne.
SEARCH INVESTOR NEWS
https://www.avient.com/news/cosmetic-packaging-reimagined-versaflex-pkg-thermoplastic-elastomers-polyone
Leading cosmetic brands and converters are choosing our chemically compatible Versaflex PKG materials – in place of silicone and standard TPEs – to create a wide range of tactile finishes, improved processability, and lower production cost,” said Michelle Hearn, global marketing director, Specialty Engineered Materials at PolyOne.
These REACH SVHC compliant TPEs have been particularly successful in Europe, where PolyOne application engineers are collaborating with brands in the early product development stages to help create highly effective, differentiated products.”
SEARCH INVESTOR NEWS
https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Investor Presentation_website w Non-GAAP.pdf
For the same reasons, Avient is unable to address the probable significance of the unavailable information.
3
AVIENT OVERVIEW
OUR VISION: Creating specialized and sustainable materials solutions that transform customer challenges into opportunities, bringing new products to life for a better world
2023 Financial ResultsCompany Overview Revenue By:
9,300
Employees
102
Manufacturing
Sites
20,000+
Customers
Key Highlights
Premier formulator of specialized
and sustainable materials solutions
Asset-light business model, with
flexibility to adapt to customer needs
Best-in-class technology and service
(140+ PhDs / 2,500+ patents)
History of transformation through
successful M&A while consistently
returning cash to shareholders
Poised for continued future growth in
excess of GDP
$3.14B
Revenue
$2.36
$502M
Adjusted EBITDA
16.0%
Adjusted EBITDA Margins
$186M
Adjusted Free Cash Flow
Over $1B in share
buybacks since 2011
Raised dividend for
13 consecutive years,
a 15% CAGR since
2011
U.S. &
Canada
64%
Specialty
Engineered
Materials
Color
Additives
and Inks
41%
23%
19%
10% 5% 4%
Building &
Energy Telecom
Geography
Segment
Industry
CREATING A WORLD-CLASS
SUSTAINABLE ORGANIZATION
1. 6% annualized long term sales
growth leveraging sustainable
solutions, composites, healthcare
and emerging regions
2.
Q1 2023
(TOTAL COMPANY)
$846 $829
$134
$143
17.3%
(in millions)
$0.63
$0.76
(in millions)
+ 7% + 21%
Sales Adjusted EBITDA Adjusted EPS
9
- 2%
15.8%
+150 bps
Q1 2024 SEGMENT PERFORMANCE
(COLOR, ADDITIVES & INKS)
$537
$515
$91
$97
18.8%
(in millions) (in millions)
+ 7%
10
- 4%
17.0%
+180 bps
• Year over year demand
continues to improve for the
segment but slowly due to
continued weakness in Europe
• Raw material deflation & cost
reduction actions primary drivers
of adjusted EBITDA growth and
margin expansion of +180 bps vs
Q1 2023
Q1 2024 SEGMENT PERFORMANCE
(SPECIALTY ENGINEERED MATERIALS)
$310
$314
$64
$73
23.2%
(in millions) (in millions)
+ 14%
11
+ 1%
20.8%
+240 bps
• Sales growth in defense end
market offset by weaker
demand in telecommunications
end market
• Raw material deflation and
favorable mix impact from
defense sales primary drivers
of adjusted EBITDA growth and
margin expansion of +240 bps
vs Q1 2023
Q1 EBITDA BRIDGE
(TOTAL COMPANY)
12
$ millions
CAI:
Price / Mix (1)
Deflation 16
SEM:
Price / Mix 4
Deflation 7
Net Price Benefit 26
Wage/Other Inflation (9)
FX (2)
Q1 2024 $143
Adjusted
EBITDA
Q1 2023 $ 134
Demand (6)
• Positive net price benefit:
o Favorable raw material
deflation in both segments
• Wage and other inflation more than
offset cost reductions/synergies
2024 G U IDA N CE
FY 2024 GUIDANCE
Original Revised
Adjusted EBITDA $505 to $535 million $510 to $535 million
Adjusted EPS $2.40 to $2.65 $2.50 to $2.65
Interest Expense $105 to $110 million $105 million
Adjusted Effective Tax Rate 23% to 25% 23% to 25%
Capital Expenditures ~$140 million ~$140 million
14
Q2 2024: Adjusted EPS of $0.71
CE O “TO P O F M IN D ”
FO CU S ARE A S
AREAS OF FOCUS
16
+7%
Drive Profitable Organic
Top-Line Growth with
Margin Expansion
Amplify Innovation Build Leadership & Talent
Pipeline
AP P EN D IX
19
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%
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)
21
(1) Total company sales and adjusted EBITDA of $3,143M and $502M, respectively, include intercompany sales eliminations and corporate costs
2023 REVENUE | $2 .0 B ILL ION
34%
37%
21%
END MARKET REGION
22
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 B ILL ION
52%
35%
23
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)
24
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.
A reconciliation of these measures to their most directly comparable GAAP measures is provided in the tables below.
2024 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income from continuing operations attributable to Avient shareholders $ 49.4 $ 0.54 $ 20.8 $ 0.23
Special items, after-tax 5.5 0.06 22.3 0.24
Amortization expense, after-tax 14.9 0.16 15.1 0.16
Adjusted net income / EPS $ 69.8 $ 0.76 $ 58.2 $ 0.63
Three Months Ended
Reconciliation to EBITDA and Adjusted EBITDA 2024 2023
Net income from continuing operations – GAAP $ 49.7 $ 21.3
Income tax expense 16.8 7.7
Interest expense, net 26.6 28.8
Depreciation and amortization 44.3 50.5
EBITDA from continuing operations 137.4 108.3
Special items, before tax 6.2 27.3
Depreciation and amortization included in special items (0.5) (1.8)
Adjusted EBITDA $ 143.1 $ 133.8
Adjusted EBITDA as a percent of sales 17.3 % 15.8 %
1
2024 2023
Sales:
Color, Additives and Inks $ 515.3 $ 537.0
Specialty Engineered Materials 314.4 309.7
Corporate (0.7) (1.0)
Sales $ 829.0 $ 845.7
Operating income:
Color, Additives and Inks $ 74.8 $ 65.6
Specialty Engineered Materials 53.4 43.1
Corporate (34.2) (51.6)
Operating income $ 94.0 $ 57.1
Depreciation & amortization:
Color, Additives and Inks $ 21.9 $ 25.8
Specialty Engineered Materials 19.6 21.2
Corporate 2.8 3.5
Depreciation & amortization $ 44.3 $ 50.5
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 96.7 $ 91.4
Specialty Engineered Materials 73.0 64.3
Corporate (31.4) (48.1)
Other (expense) income, net (0.9) 0.7
EBITDA from continuing operations 137.4 108.3
Special items, before tax 6.2 27.3
Depreciation and amortization included in special items (0.5) (1.8)
Adjusted EBITDA $ 143.1 $ 133.8
Adjusted EBITDA as a percent of sales:
Color, Additives and Inks 18.8 % 17.0 %
Specialty Engineered Materials 23.2 % 20.8 %
December 31, 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS
Net income from continuing operations attributable to Avient shareholders $ 75.8 $ 0.83
Special items, after-tax 79.3 0.86
Amortization expense, after-tax 61.5 0.67
Adjusted net income / EPS $ 216.6 $ 2.36
Free Cash Flow Calculation December 31, 2023
Cash provided by operating activities $ 201.6
Taxes paid on gain on sale of business 104.1
Adjusted cash provided by operating activities 305.7
Capital expenditures (119.4)
Free cash flow $ 186.3
Year Ended
December 31, 2023
Sales:
Color, Additives and Inks $ 2,007.4
Specialty Engineered Materials 1,138.2
Corporate (2.8)
Sales $ 3,142.8
Operating income:
Color, Additives and Inks $ 259.9
Specialty Engineered Materials 142.5
Corporate (205.6)
Operating income $ 196.8
Depreciation & amortization:
Color, Additives and Inks $ 98.3
Specialty Engineered Materials 81.5
Corporate 9.0
Depreciation & amortization $ 188.8
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 358.2
Specialty Engineered Materials 224.0
Corporate (196.6)
Other income, net 5.8
EBITDA from continuing operations 391.4
Special items, before tax 114.6
Interest expense included in special items (2.3)
Depreciation and amortization included in special items (1.9)
Adjusted EBITDA $ 501.8
Adjusted EBITDA as a percent of sales 16.0 %
3
Year Ended
December 31,
Reconciliation to EBITDA and Adjusted EBITDA: 2006 2014
Sales $ 2,622.4 $ 3,835.5
Net income from continuing operations – GAAP $ 133.5 $ 77.2
Income tax expense 29.7 11.2
Interest expense, net 63.1 62.2
Depreciation and amortization 57.1 123.9
EBITDA from continuing operations 283.4 274.5
Special items, before tax (34.0) 164.9
Depreciation and amortization included in special items — (23.1)
Joint venture equity income (107.0) —
Adjusted EBITDA $ 142.4 $ 416.3
Adjusted EBITDA as a percent of sales 5.4 % 10.9 %
Year Ended
December 31,
Reconciliation of Adjusted EPS: 2006 2014
Net income from continuing operations attributable to Avient common shareholders $ 130.9 $ 78.0
Joint venture equity earnings, after-tax (68.5) —
Special items, after-tax (21.2) 101.0
Special items, tax adjustments (30.0) (10.5)
Amortization expense, after-tax 1.4 12.4
Adjusted net income from continuing operations attributable to Avient common
shareholders $ 12.6 $ 180.9
Diluted shares 92.8 93.5
Adjusted EPS attributable to Avient common shareholders $ 0.14 $ 1.93
AVNT Q1 2024 Investor Presentation_w Non-GAAP.pdf
IR Deck - AVNT-2024.03.31 5.09 4PM.pdf
Attachment
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Gabelli%2520%2526%2520Co%2520Specialty%2520Chemicals%2520Conference.pdf
The New PolyOne: A Specialty Growth Company
Segment Highlights
16POLYONE CORPORATION
1.7%
4.6% 5.1% 5.5%
7.2% 8.1%
9.7%
12.2%
14.7%
16.7%
16.0%
2017 Revenue: $0.9 Billion
United
46%
31%
Asia 15%
Latin
South
(27%)
(14%)
(10%)
Textiles
(12%)
(8%)
15.5%
Color, Additives & Inks
17POLYONE CORPORATION
1.1% 1.3%
3.4%
5.1%
9.6%
8.0% 8.6% 9.3%
12.1%
14.7%
United
48%
28%
22%
(20%)
(19%)
Electrical & Electronics
(15%)
(13%)
(11%)
12.5%
2017 Revenue: $0.6 Billion Operating Income % of Sales
14.3%
Specialty Engineered Materials
18POLYONE CORPORATION
5.5%
6.9%
3.8%
3.6%
5.5%
4.3%
6.3%
7.2% 7.7%
8.3%
12-14%
10.7%
11.1%
United
77%
16% Latin
5%
Building & Construction
(30%)
(16%)
(15%)
(18%)
2017 Revenue: $0.7 Billion Operating Income % of Sales
Performance Products & Solutions
19POLYONE CORPORATION
23%
22%
18%
15% Appliance
7%
E & E
6%
B & C
3%
W & C
38%
ROIC*
2.6% 3.0% 3.5%
4.6%
5.6%
6.4% 5.9% 6.1%
6.6% 6.5 - 7.5%6.3%
*After-Tax ROIC
6.4%
2017 Revenue: $1.2 Billion Key Suppliers
4.0%
Distribution
http://www.avient.com/Pages/VariationRoot.aspx
http://www.avient.com/Pages/VariationRoot.aspx
Target End Markets &
Application Examples
21POLYONE CORPORATION
Thermally Conductive
Chemical Resistant
Polymer Colorants
Elastomeric Grips and Handles
Structural Composites
Antimicrobial Technologies
Anti-Counterfeiting
Target End Markets… Healthcare
Catheter Technologies
22POLYONE CORPORATION
Under-hood Components
Target End Markets… Automotive
Interior Structural Components
Sound & Vibration Management
Roof Systems
Air Management
Electronics and Cameras
Lighting
Exterior / Interior Trim
Braces & Brackets
Fasteners
Seals & Flaps
23POLYONE CORPORATION
Target End Markets… Consumer
Thermally Conductive
Components
Polymer Colorants
Elastomeric Grips and
Handles
Structural Composite
Components
24POLYONE CORPORATION
Oxygen Scavenger
Laser Marking Additives
Antistatic Technologies
UV Light Barrier Technologies
Cap & Closure Colorants
Process Optimization
Antioxidant Technologies
Density Modified Technologies
Target End Markets… Packaging
25POLYONE CORPORATION
Impart weight, sound and
metallic finish to caps and
closures for cosmetics and
spirits applications
Elevate quality and prestige
perceptions among high-end
consumers
Eliminate time and cost
associated with secondary
operations and assembly
Luxury Packaging
GravitechTM Density Modified Polymers
26POLYONE CORPORATION
Optimize Color Usage
OnColorTM Super Concentrates
Eliminate costs by increasing
pigment density
Enhance color performance
without altering form and
formulation
Increasing design capabilities
by reducing weight and layer
thickness
27POLYONE CORPORATION
Combat Bacteria Formation
WithStandTM Antimicrobial Technology
Inhibit microbial growth on
polymer surfaces
Enhance value or products
and devices
Highly versatile concentrate
with the ability to be
incorporated into a wide
variety of products
28POLYONE CORPORATION
Medical Device Housings
Chemically Resistant Engineered Polymers
Durable, long-lasting products
stand up to the most
aggressive disinfectants
Minimize environmental
stress cracking and
discoloration
One of the broadest medically
approved polymer and
colorant portfolios
29POLYONE CORPORATION
Color & Design Services
Greater control of color
development and supply chain
Work across entire design
process from concept to
commercialization
Inspire creativity in the use of
polymer materials, colors, and
effects
Innovative brand differentiation
Faster development timelines
30POLYONE CORPORATION
Outdoor Applications
Leading provider of high
performance specialty materials
for the recreational and sports
& leisure industry
Well positioned across all
segments to address market
needs
Metal to Polymer
Conversion
Lightweighting
Thermal Management
Impact Performance
31POLYONE CORPORATION
ColorMatrix Fiber Colorant
Proprietary advanced liquid color
formulations and equipment
enable greater efficiency and
productivity
Eliminates aqueous dyeing and
its associated wastewater
treatment
Solid Color Concentrates
Extrusion-spun fibers colored via
solid masterbatch
Fiber Colorants
32POLYONE CORPORATION
Smart Home Devices
ResilienceTM Vinyl Solutions
High flame retardancy to meet
strict UL standards
Greater processing and design
flexibility
Specialized additives provide
long term color stability
Diffusive lens materials improve
light dispersion
1
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(Dollars in millions, except per share data)
Senior management uses comparisons of adjusted net income from continuing operations attributable to PolyOne common shareholders, adjusted earnings per share (EPS)
attributable to PolyOne common shareholders and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to assess performance and allocate resources
because senior management believes that these measures are useful in understanding current profitability levels and that current levels may serve as a base for future performance.
1) Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from
personnel reduction programs, plant realignment costs, executive separation agreements; asset impairments; mark-to-market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation
costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or
disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non-recurring items; the effect of changes in accounting principles or other
such laws or provisions affecting reported results and tax adjustments.
Tax adjustments include the net tax expense/benefit from one-time income tax items, the set-up or reversal of uncertain tax position reserves and deferred income tax valuation allowance
adjustments.