https://www.avient.com/sites/default/files/2023-03/AVNT Mar 2023 Earnings Presentation.pdf
Pro Forma Financial Information
The Company acquired Avient Protective Materials (“Dyneema”) on September 1, 2022 (the “Acquisition Date”) and sold the Distribution segment on November 1, 2022.
Innovation is the lifeblood of a specialty company.
GUIDANCE
(TOTAL COMPANY PRO FORMA)
7
$100
$107
Guidance Pro Forma
$0.33
$0.42
Guidance Pro Forma
Adjusted EBITDA Adjusted EPS
(in millions)
$200
$293
Guidance Actual
Free Cash Flow
(in millions)
FY 2022 VS.
https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Earnings Presentation_For_Website_w_non-GAAP_5_6_1.pdf
For the same reasons, Avient is unable to address the probable significance of the unavailable information.
2
O P E N I N G RE MARK S
4
REGIONAL DEMAND TRENDS-TOTAL COMPANY
Q 1 S A L E S V S P Y ( E X C L U D I N G F X )
4
+2%
-6%
Flat
+2%
Avient ex.
Q1 2023
(TOTAL COMPANY)
$846 $829
$134
$143
17.3%
(in millions)
$0.63
$0.76
Adjusted EPS
(in millions)
+ 7% + 21%
Sales Adjusted EBITDA Adjusted EPS
6
- 2%
15.8%
+150 bps
Q1 2024 SEGMENT PERFORMANCE
(COLORS, ADDITIVES & INKS)
$537
$515
$91
$97
18.8%
(in millions) (in millions)
+ 7%
7
- 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%
8
+ 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)
9
$ 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 I DAN 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
11
Q2 2024: Adjusted EPS of $0.71
CE O “ TO P O F MI N D”
FO CU S ARE AS
AREAS OF FOCUS
13
+7%
Drive Profitable Organic
Top-Line Growth with
Margin Expansion
Amplify Innovation Build Leadership & Talent
Pipeline
AP P E N DI X
16
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
7%
END MARKET REVENUE
$2,007M $358M
$1,138M $224M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$502M$3,143M
(1)
7%
18
(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
19
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 BILLION
52%
35%
20
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)
21
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.
The presentation of these measures may be different from non-GAAP financial measures used by other companies.
https://www.avient.com/sites/default/files/2025-01/ColorMatrix Lactra ESL Infographic.pdf
Nutritional components in dairy
products are photosensitive,
making them susceptible to
light degradation
• Light protection in dairy packaging
helps maintain product integrity
and extend shelf life
A LIGHT BLOCKING SOLUTION THAT
PROVIDES:
• Light blocking and whiteness in PET dairy packaging
• Protection from 2 weeks up to 12 months shelf life
• Compatibility with monolayer and multilayer PET
preforms
• Full compatibility with rPET
• Food contact approved (region dependent)
• Low TiO₂ levels to increase recyclability, aligning
with the emergence of white recycle streams
PASTEURIZED MILK
Typical shelf life
5–10 days
WHITE COLOR LACTRA ESL
LACTRA SX or
LACTRA 4
EXTENDED
SHELF LIFE MILK
2 weeks–3 months
UHT MILK &
PRODUCTS
4–12 months
Lightweighting/CO2
reduction
Reduced LDR –
material &
cost savings
Improved
processing
performance
BENEFITS OF
COLORMATRIX™
LACTRA™ Improved
bottle
Compatibility
with rPET
Helps to
Protect
Performance
Energy efficiency
Whiteness
85–92 L*
30% less
life cycle
emissions
Increased machinery
life cycle due to reduced
wear & tear
80–100% light blocking
© 2024, All Rights Reserved
Avient Corporation, 33587 Walker Road, Avon Lake, Ohio USA 44012
https://www.avient.com/investor-center/news/avient-completes-sale-distribution-business-hig-capital
announced today that the former Avient Distribution business will now operate as an independent company called Formerra.
Investor Contacts
https://www.avient.com/investor-center/news/avient-announces-thirteenth-consecutive-annual-dividend-increase
Since first introducing the dividend in 2011, we have transformed the company, significantly improving the margin profile and cash generation of the business.
Investor Contacts
https://www.avient.com/products/polymer-additives/uv-and-light-blocking-additives/cesa-light-additives
EU and US food contact, toy, UL 94 recognition, are available
See our extensive library of resources about our growing company.
https://www.avient.com/investors
The company is certified ACC Responsible Care® and certified Great Place to Work®.
Investor Contacts
https://www.avient.com/idea/three-ways-soft-touch-enhances-consumer-products
Many companies also employ TPEs to help meet the requirements of the US Occupational Health and Safety Administration (OSHA) for ergonomically designed tools.
Incorporating TPE materials into grips, handles, buttons, plungers, caps and closures can help reduce forceful exertion, repetitive motion, contact stress, and vibration.
https://www.avient.com/sites/default/files/2024-08/Avient Q2 2024 Earnings Call Presentation.pdf
Q2 2023
(TOTAL COMPANY)
$824
$850
$131
$143
(in millions)
$0.63
(in millions)
Adjusted EBITDA Adjusted EPS
5
+ 3%
(+5% excluding FX)
+ 9%
(+12% excluding FX)
+ 21%
(+25% excluding FX)
Sales
6
Q2 2024 RESULTS – ORGANIC SALES BY
REGION VS PY
6
+5%
+4%
+1%
+19%
Avient ex.
FX +4.6%
FX -1.5%
Total Avient +3.1%
Note: Regional Sales Percentages exclude impact of foreign exchange
Q2 2024 SEGMENT PERFORMANCE
(COLOR, ADDITIVES & INKS)
$525
$542
$94
$108
19.9%
(in millions) (in millions)
7
17.9%
+200 bps
* Adjusted EBITDA Margin %
• Organic sales growth in all
regions led by Americas
• Raw material deflation combined
with cost reduction actions drove
EBITDA margin expansion
+ 3%
(+5% excluding FX)
+ 15%
(+17% excluding FX)
Q2 2024 SEGMENT PERFORMANCE
(SPECIALTY ENGINEERED MATERIALS)
$301
$308
$60
$64
20.6%
(in millions) (in millions)
8
19.8%
+80 bps
* Adjusted EBITDA Margin %
• Sales growth in consumer,
healthcare and building &
construction end markets offset
by weaker demand in
telecommunications
• EBITDA margin expansion
driven by positive end market
mix as well as raw material
deflation
+ 2%
(+4% excluding FX)
+ 7%
(+8% excluding FX)
2024 G U IDA N CE
FY 2024 GUIDANCE
Previous (May 7) Current
Adjusted EBITDA $510 to $535 million $515 to $540 million
Adjusted EPS $2.50 to $2.65 $2.55 to $2.70
Interest Expense $105 million $105 million
Adjusted Effective Tax Rate 23% to 25% 23% to 25%
Capital Expenditures ~$140 million ~$140 million
10
Q3 2024: Adjusted EPS of $0.62
11
Highlights
• Provides performance updates on 2030
Sustainability Goals
• Reduced company’s Scope 1 & 2 GHG emissions
by 48% since 2019
• Highlights ESG performance ratings, certifications,
and awards, including recent upgrades by
Ecovadis to Gold and CDP to A-
• Reflects Great Place to Work® culture focused on
health, safety and employee engagement
2023 SUSTAINABILITY REPORT
11
Sustainability for a
Better Tomorrow
2023
SUSTAINABILITY REPORT
12
• Investor Day to be held December 4, 2024 in
New York, NY
• The focus will be to do a deep dive on the
Company’s strategy
• Further details to be communicated
2024 AVIENT INVESTOR DAY
AP P EN D IX
15
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
7%
END MARKET REVENUE
$2,007M $358M
$1,138M $224M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$502M$3,143M
(1)
7%
17
(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
18
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 B ILL ION
52%
35%
19
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)
20
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.
The presentation of these measures may be different from non-GAAP financial measures used by other companies.
https://www.avient.com/sites/default/files/2022-02/AVNT Q4 2021 Earnings Presentation_0.pdf
Each of such adjustments has not yet occurred, are out of the Company's control and/or cannot be reasonably predicted.
For the same reasons, the Company is unable to address the probable significance of the
unavailable information.
The presentation of these measures may be different from non-GAAP financial measures used by other companies.