https://www.avient.com/sites/default/files/2023-05/AVNT Q1 2023 Earnings Presentation.pdf
& Canada
40%
38%
17%
Q1 2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
18%
23%
Building and
6%Telecommunications
END MARKET REVENUE
(1) Total company sales and adjusted EBITDA of $846M and $134M, respectively, include intercompany sales eliminations and corporate costs
$537M $91M
$310M $64M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$134M$846M
(1)
9
Q1 2023 SALES BY REGION
Yo Y C H A N G E ( E X C L .
National Defense
budget of $842 billion submitted to Congress
in Q1 2023
• European NATO members annual defense
spend expected to increase by up to 20%
Dyneema® is the world’s strongest fiber™
One of the highest strength to weight
ratios of any material on Earth
Direct relationships with industry leading
armor manufacturers
Resistant to most chemicals, UV, and
moisture to handle any environment
Avient Confidential 13
DEFENSE
Source: US Department of Defense, defense.gov, NATO13
Source:
TRANSPORTATION
• Increased EPA regulations requiring
improved fuel efficiency, enabled in part by
lower-weight vehicles
• Automakers preparing for 2/3 of U.S.
vehicles to be 100% electric by 2032
Lightweight panels that establish both
strength and stiffness resulting in
decreased energy usage, lower emissions
Long-lasting Color applications to resist
UV exposure, temperature fluctuations
and exceed the stylistic requirements of
global automakers
14
$130
$530
$0.60
$2.40
2023 GUIDANCE
15
Sales Adjusted EBITDA
$845
$3,400
Adjusted EPS
(in millions) (in millions)
CASH FLOW / LEVERAGE
16
• Maintaining free cash flow
and leverage guidance from
February earnings call
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Restructuring actions to
streamline operations and
improve profitability,
primarily in Europe
($ 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
LONG-TERM REVENUE GROWTH DRIVERS
Growth Drivers
Long-Term
Growth Rate
Sustainable Solutions 8–12%
Healthcare 8–10%
Composites 10%
Asia / LATAM 5%
Other (GDP growth) 2–3%
Avient 6.5%
17
Sustainable
Solutions
32%
Asia / LATAM
Composites
Other (GDP
Growth)
39%
• Virtual presentation to be held
September 20, 2023
• The company will be
conducting an investor-focused
presentation around our
sustainability solutions portfolio
Avient Confidential 18
SUSTAINABILITY
INVESTOR DAY
18
$340M
$405M
$455M
$550M
$790M
$915M
2016 2017 2018 2019 2020PF** 2021 2022PF***
SUSTAINABILITY FOR A BETTER TOMORROW
Revenue From Sustainable Solutions* 2016-2022
($ in millions)
Organic Future Growth Revenue Assumptions From Sustainable Solutions: 8 - 12%
19
*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
$1,175M
Lightweighting
Eco-Conscious
Recycle Solutions
VOC Reduction
Sustainable Infrastructure
Human Health & Safety
Reduced Energy Use
Bio-polymers
SUSTAINABILITY NEEDS BY MARKET
B&C
• Eco-Conscious
• Carbon footprint
• Resource
conservation
• Carbon footprint
• Bio based content
• Eco-Conscious
Automotive
• Light weighting
• Recycled Content
• VOC reduction
• Recycle Solutions
• Carbon Footprint
Packaging
• Recycle Solutions
• Food waste
reduction
Common Theme: CO2 Emission Goals
Increasing Single-Use Plastic Regulation
20
INVESTING
IN INNOVATION
S U S T A I N A B I L I T Y P O R T F O L I O
21
AP P EN D IX
24
RAW MATERIAL 2022 ANNUAL PURCHASES
Performance
Additives
Pigments
12%
TiO2
Dyestuffs
2%
Polyethylene
Nylon
Polypropylene
Styrenic Block
Copolymer
Other Raw
Materials
33%
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
• Cost inflation
decelerating,
particularly for
hydrocarbon-based
raw materials
2022 pro forma results for the acquisition of Avient Protective Materials
SEGMENT DATA
U.S. & Canada
40%
37%
18%
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
24%
Building and
END MARKET REVENUE
$2,355M $402M
$1,300M $272M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$592M$3,653M
(1)
9%
26
(1) Total company sales and adjusted EBITDA of $3,653M and $592M, respectively, include intercompany sales eliminations and corporate costs
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
34%
38%
END MARKET REGION
27
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
52%
35%
REGION
28
19%
8%Industrial
9% Defense
Building &
32%
27%
14%
Building &
3%
1% Defense
1%
(18% of sales)
9%
2022 PROFORMA AVIENT REGIONAL SALES
BY END MARKET
27%
14%
17%
Building &
(37% of sales)Transportation
24%
12%
Building &
US &
Canada
(40% of sales)
56%
23%
Building &
1%
LATAM
(5% of sales)
3%
29
PEER COMPARISONS
AVIENT IS ASSET LIGHT
Capex / Revenue
2023E (%)
Avient Specialty
Other Specialty /
Note: Avient reflects 2023 estimated revenue of $3,400 and estimated run-rate CAPEX of $110M.
31
4 4
5 5 5
6
7
9
FREE CASH FLOW CONVERSION
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/sites/default/files/resources/Ahrensburg_ISO50001.pdf
C
er
ti
fi
ed
M
anagement System
s
by
Switzerland
Certificate
The SQS herewith attests that the organisation named below has a management system that meets
the requirements of the normative base mentioned.
https://www.avient.com/sites/default/files/308837_en_46388.pdf
C/Carretera.
https://www.avient.com/sites/default/files/2024-05/Smartbatch-Outdoor Chair-Case Study Snapshot_0520.pdf
PE Tarpaulin manufacturer
PP MULTI-
FILAMENT
MANUFACTURER
O U T D O O R C H A I R
• Resist UV light degradation in U.S. & European climates
for an extended period
• Maintain color stability and resist brittleness for a minimum
of 3 years
• Reliable supplier with good product quality and stable
supply
• Offered a UV stabilizer for PP multi-filament
yarn
• Delivered good light fastness
• Provided cost effectiveness by combining
colorant and UV additive solutions
• Had in-house Q-Lab UV (QUV) tester to meet
strict customer standards
Smartbatch Combination Colorants &
Additives
KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2024-05/Avient Zertifikat englisch - 2024.pdf
Bergmann GmbH
Adolf-Dambach-Str. 2-4
76571 Gaggenau
c/o Avient ECCOH High Performance Solutions GmbH
Oldendorfer Straße 9, 49324 Melle
Production of technical Polymers
https://www.avient.com/sites/default/files/2021-12/Concrete Reinforcement Application Snapshot.pdf
CONCRETE
REINFORCEMENT
I N F R A S T R U C T U R E R E P A I R
• Alternative to steel for reduced weight and improved
corrosion resistance
• Surface modification capabilities to improve concrete
adhesion
• Superior strength-to-weight ratio
• Durable, long-lasting performance to extend service life
• Provided peel ply and other surface
modification capabilities that comply with
specific CA regulations and allowed for
better adhesion with concrete
• Performed with higher strength-to-weight
ratio than typical steel alternatives
• Prolonged service life by resisting
corrosion and dampening vibration
Glasforms™ Carbon Fiber Composites
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2021-05/dock-shelter-1-page.pdf
LOADING DOCK
SHELTERS
R E I N F O R C I N G S T A Y S
Replacement for steel or composite stays to provide reliable
seal from external environment:
• Withstand repeated flex and twisting, pass rigorous
proprietary flexural testing requirements
• Maintain performance in extreme temperatures
• Enabled repeated twisting and flexing
without failure, up to 90˚ bends, due to
exceptional mechanical properties
• Customized finishing to meet specific shape
and edge surface requirements
• Improved supply reliability with product
manufactured in Montrose, CO
Gordon Composites™ Thermoset Composite
Springs
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2021-03/decking-case-study-1-pager.pdf
STRUCTURAL
DECKING
R E I N F O R C E D H D P E L U M B E R
• Reinforcement to improve strength of HDPE decking
• Composite tape compatible with HDPE for strong
adhesion
• Low thermal expansion
• Domestic (U.S.) supply and manufacturing
• Added strength to HDPE deck boards to
enable industry-leading load capacity and
joist spacing spans
• Extended product life with superior adhesion
of PE tape via co-extrusion
• Improved supply reliability with product
manufactured in Englewood, CO
Polystrand™ unidirectional thermoplastic
composite tape
KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2021-01/case-study-one-pager-lubrione-data-storage-carrier.pdf
DATA STORAGE UNIT
MANUFACTURER
D A T A S T O R A G E C A R R I E R
• Excellent dimensional stability
• Good mechanical properties with excellent wear
resistance
• Flame retardant requirement – FRv0 compliance
• UL certification
• Provided a customized formulation to meet
application-specific lubricity, physical and
thermal requirements
• Delivered on short lead times to help
customer manage working capital
LubriOne™ CY1000-000/5T FR V0 BLK001
Formulation
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2022-04/LubriOne_Autoinjector Pen _Application snapshot_0419.pdf
LubriOne_Autoinjector Pen _Application snapshot_0419
AUTO-INJECTOR
PEN OEM
P L U N G E R S C R E W
• Reduce friction and improve durability
• Good strength and stiffness
• Dimensional stability
• Formulated a self-lubricating material to
meet injection accuracy requirement
• Improved the user experience by improving
injector’s wear resistance
• Achieved consistent dimensional stability
and properties
LubriOne™ Internally Lubricated Formulation
KEY REQUIREMENTS
WHY AVIENT?