https://www.avient.com/sites/default/files/2022-09/Cesa Laser Marking Additives for Transportation Industry Bulletin.pdf
Our Cesa™ Laser
Marking Additives not only contain a laser marking
additive but also deliver a part’s color and can
include other additives such as those for scratch or
UV resistance.
The activation changes the
molecular structure of these
additives, causing a color change
that provides the vivid contrast
of laser marking.
The mark can be white
or dark in color.
https://www.avient.com/sites/default/files/2020-12/artisan-thermoplastics-nylon-processing-guide.pdf
ARTISAN™ PRE-COLORED
THERMOPLASTICS
NYLON (PA6) FORMULATIONS
PROCESSING GUIDE
2 Artisan Pre-Colored Thermoplastics
Artisan™ Pre-Colored Thermoplastics
Artisan™ thermoplastics are vibrant, pre-colored high-gloss, scratch resistant engineered polymers
formulated to replace paint for superior results.
Can cause issues with color variation,
surface defects, loss of properties and may affect the weatherability.
Cut vent depths to 0.0007″–0.0015″
Draft Angle Maintain a minimum draft angle of 1° per side
4 Artisan Pre-Colored Thermoplastics
Incomplete Fill
Melt and/or mold
too cold
• Increase nozzle and barrel temperatures
• Check thermocouples and heater bands
Shot size
• Increase shot size
• Adjust transfer position to 98% full
• Increase cushion
Mold design
• Enlarge or widen vents and increase number of vents
• Check that vents are unplugged
• Check that gates are unplugged
• Enlarge gates and/or runners
• Perform short shots to determine fill pattern
and verify proper vent location
• Increase wall thickness to move gas trap to
parting line
Brittleness
Degraded/overheated
material
• Decrease melt temperature
• Decrease back pressure
• Use smaller barrel
Gate location
and/or size
• Relocate gate to non-stress area
• Increase gate size to allow higher flow rate
and lower molded-in stress
Wet material
• Check moisture.
https://www.avient.com/sites/default/files/2022-05/ColorMatrix Amosorb Solo Technical Bulletin.pdf
Scenarios for 2030 predict that of the 1300kt of
PET material coming from PET bottles collected
from the market yearly, between 20 to 30% will be
colored bottles;2 these will enter their respective
sorting and collection systems to ultimately
produce rPET material that will be fed as new raw
material for non-food PET applications.
Providing
solutions that are considered recyclable within the
colored bottle stream will thus be an integral part
of the recyclability strategy for both convertors and
brand owners.
It was also demonstrated that usage of a reduced
amount of color, namely 0,045% of Fortis Amber-1,
allows the production of bottles (Bottle C) that closely
resembles the original bottles (Bottle A).
https://www.avient.com/sites/default/files/resources/Innovation%2520Day%2520-%2520May%25202014.pdf
Van Hulle Senior Vice President,
President of Global Color
Additives and Inks
Robert M.
McAlindon Senior Vice President,
President of Designed
Structures and Solutions
Fernando Sanchez Global Director of
Marketing
Global Color and Additives
Craig M.
Van Hulle
Global Color Additives and Inks
Percept™ Authentication Technologies
2) Security and Safety Solutions
Julie A.
https://www.avient.com/sites/default/files/2024-03/AVNT February IR Presentation_w_Non-GAAP Recs_v2.pdf
&
Canada
64%
Specialty
Engineered
Materials
Color
Additives
and Inks
23%
10% 5% 4%
Building &
Energy Telecom
Geography
Segment
Industry
4
CREATING A WORLD-CLASS
SUSTAINABLE ORGANIZATION
1. 6% annualized long term sales
growth leveraging sustainable
solutions, composites, healthcare
and emerging regions
2.
PY
$790
$719
$107
$114
Sales Adjusted EBITDA
$0.42
$0.52
- 9% + 7% + 24%
Sales Adjusted EBITDA Adjusted EPS
15
Q4 2023 SEGMENT PERFORMANCE
16
CAI
$491
$459
Sales
$70
$84
SEM
$301
$260
Sales
$55
$49
- 7% - 14%+20% - 11%
Q4 EBITDA BRIDGE
17
$ millions
CAI:
Price / Mix 11
Deflation 14
SEM:
Price / Mix 4
Deflation 9
Net Price Benefit 38
Cost Reductions 13
Wage Inflation (8)
Other (2)
Q4 2023 $114
Adjusted
Q4 2022 $ 107
Demand (34) • Demand was down, but less than in previous
quarters, due to slowing pace of destocking
• Positive net price benefit:
o CAI – Pricing flat with favorable mix from
uptick in packaging and consumer end
markets and raw material deflation
o SEM - Pricing flat with favorable mix from
Composites and raw material deflation
• Cost reductions primarily driven by reduced
administrative costs and cost synergies
2024 G U I DAN CE
2024 GUIDANCE
Full Year 2024 Guidance
Adjusted EBITDA $505 to $535 million
Adjusted EPS $2.40 to $2.65
Interest Expense $105 to $110 million
Adjusted Effective Tax Rate 23% to 25%
Capital Expenditures ~$140 million
19
Q1 Adjusted EPS of $0.68
AP P E N DI X
21
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
2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
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)
23
(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
24
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 BILLION
52%
35%
25
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)
26
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.
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
Three Months Ended
Year Ended
2023 2022 2023 2022
Sales:
Color, Additives and Inks $ 459.4 $ 490.8 $ 2,007.4 $ 2,355.0
Specialty Engineered Materials 259.8 300.8 1,138.2 1,044.4
Corporate (0.2) (1.2) (2.8) (2.5)
Sales $ 719.0 $ 790.4 $ 3,142.8 $ 3,396.9
Operating income:
Color, Additives and Inks $ 61.8 $ 44.3 $ 259.9 $ 301.0
Specialty Engineered Materials 29.4 35.2 142.5 140.1
Corporate (48.1) (79.1) (205.6) (197.8)
Operating income $ 43.1 $ 0.4 $ 196.8 $ 243.3
Other expense, net: $ 4.3 $ (28.4) $ 5.8 $ (59.7)
Depreciation & amortization:
Color, Additives and Inks $ 22.2 $ 25.2 $ 98.3 $ 101.3
Specialty Engineered Materials 19.8 20.3 81.5 48.7
Corporate 2.2 3.1 9.0 12.5
Depreciation & amortization $ 44.2 $ 48.6 $ 188.8 $ 162.5
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 84.0 $ 69.5 $ 358.2 $ 402.3
Specialty Engineered Materials 49.2 55.5 224.0 188.8
Corporate (45.9) (76.0) (196.6) (185.3)
Other expense, net $ 4.3 $ (28.4) $ 5.8 $ (59.7)
EBITDA $ 91.6 $ 20.6 $ 391.4 $ 346.1
Special items in EBITDA 22.3 86.8 110.4 162.5
EBITDA - excluding special items $ 113.9 $ 107.4 $ 501.8 $ 508.6
APM pro forma adjustments - 8 months 2022* — — — 83.1
Pro forma EBITDA $ 113.9 $ 107.4 $ 501.8 $ 591.7
* Pro forma adjustment for January - August 2022 APM results (period before Avient ownership).
3
AVNT February IR Presentation_w_Non-GAAP Recs.pdf
AVNT February IR Presentation.pdf
Avient corporation�investor presentation
DISCLAIMER
Slide Number 3
Creating a world-class�sustainable organization
Top-tier sustainability performance�and recognition
Slide Number 6
Slide Number 7
Portfolio transformation
Slide Number 9
END MARKET observations�(% of company sales)
Regional observations�(% of company sales)
Slide Number 12
Slide Number 13
Slide Number 14
Slide Number 15
Slide Number 16
Slide Number 17
Slide Number 18
Slide Number 19
Slide Number 20
Slide Number 21
Slide Number 22
2023 segment, end market and Geography
Color, Additives & Inks
Specialty Engineered Materials
Slide Number 26
AVNT Q4 2023 Earnings Presentation.pdf
AVNT Q4 2023 Earnings Presentation_For Website_with Non-GAAP.pdf
IR Deck - AVNT-2023.12.31 (2.12.24 9PM Milestone February 12 0905 pm).pdf
Attachment
3.26.24 - Public Lender Presentation Non-GAAP Attachments (005).pdf
https://www.avient.com/sites/default/files/2024-03/QF-02 QMS Global Standard Response.PDF
Avient Colorants Sweden AB in Malmoe and Avient Colorants USA LLC in Lewiston, Maine are Medical
Centers of Competence with an external ISO 13485 certification.
Validation
Avient Colorants Sweden AB and Avient Colorants
Lewiston, ME follow the Global Harmonization Task
Force guideline GHTF/SG3/N99-10 to define the
procedure for process validation.
HACCP
Avient Colorants Spain S.A., Avient Colorants
Toluca Mexico, and PolyOne Spain SLU follow the
structure of HACCP (Hazard Analysis and Critical
Control Point) as a system for assessing
compliance to food safety standards.
https://www.avient.com/sites/default/files/2021-09/avient2020sustainabilityreport-9-2-21.pdf
Since masterbatch
coloring needs to be corrected each time, the color properties of PCR
change.
Calculate color corrections to meet a target color
3.
Define PCR color specification limits and find PCR grades to
achieve a target color
4.
https://www.avient.com/sites/default/files/2022-03/Asia SEM Healthcare Product Selection Guide %281%29.pdf
CHARACTERISTICS TPE THERMOSET RUBBER LIM* SILICONE PVC
Compression Set Good Excellent Excellent Fair
Heat Resistance Good Excellent Excellent Fair
UV/Ozone Resistance Good Good Good Good
Chemical Resistance Good Excellent Excellent Good
Barrier Properties Excellent Good Excellent Excellent
# of Manufacturing Steps Excellent Good Good Excellent
Supply Chain Availability Excellent Excellent Fair Excellent
Colorability Excellent Good Good Excellent
Total Costs $$ $$$ $$$$ $
THERMOPLASTIC ELASTOMERS FOR HEALTHCARE
GENERAL CHARACTERISTICS COMPARING TPE, RUBBER, SILICONE, AND PVC
We offer a broad range of TPEs solutions that are specially formulated to meet demanding healthcare device and
application challenges.
PP OVERMOLDING HARDNESS REGULATORY STERILIZATION CHARACTERISTICS
Dynaflex™ G2706 28A USP Class VI, ISO 10993,
Food contact EtO Soft translucent grade,
grippy feel
Dynaflex™ G2711 43A USP Class VI, ISO 10993,
Food contact EtO Highly colorable solution,
grippy feel, low compression set
Versaflex™
CL2242 & CL2250 42A/ 50A USP Class VI, ISO 10993,
US Food contact EtO Clear boilable grades;
ABS, PC bondable
Versaflex™ G2705 N 60A USP Class VI, ISO 10993,
Food contact EtO/Steam High resilience,
low compression set
Versaflex™ HC3810 20A-90A USP Class VI, ISO 10993 EtO General purpose, unfilled
ABS, PC OVERMOLDING HARDNESS REGULATORY STERILIZATION CHARACTERISTICS
Versaflex™ OM1040 40A USP Class VI, ISO 10993 EtO Translucent
Versaflex™ OM3060 60A USP Class VI, ISO 10993 EtO Clear
VERSAFLEX™ CL AND DYNAFLEX™ TPEs
OVERMOLDING FOR
ERGONOMICS
• Adds good tactile surface with soft-touch feel
• Available in a variety of color effects and
textures
• Improves grip, cushion, and comfort
• Enhances functional performance like sealing
properties, vibration damping, oxygen
barrier, and scratch and abrasion resistance
• Reduces assembly costs, good processability
• Offers excellent adhesion to a wide range of
substrates
• Glucometers
• Medical tools overmolds
• Injector pens
• Analysis devices
VERSALLOY™ HC & VERSAFLEX™ HC TPEs
SEALING & RESEALING
• Rubbery feel and soft touch
• No coring, good puncture, and
resealability in static stoppers
• Meets low coefficient of friction
requirements in dynamic seals
• Low extractables
• Suitable to overmold onto polyolefins
• Sealing and resealing septum
• Seals and sanitary gaskets
• Syringe plungers and tips
MATERIAL DESCRIPTION HARDNESS REGULATORY STERILIZATION CHARACTERISTICS
Versalloy™
HC 9210-45N 45A USP Class VI EtO Good processability,
HC 9210-55N 55A USP Class VI EtO Good processability,
HC 9210-70N 70A USP Class VI EtO Good processability,
HC 9220-43N 43A USP Class VI,
ISO 10993-4/5 EtO Extrusion grade,
high temperature resistance
Versaflex™
HC 2110-35N 34A FDA, USP Class VI,
ISO 10993
Autoclave EtO
radiation Resealing, elevated comp set
Versaflex™
HC 2110-57B 57A FDA, USP Class VI,
ISO 10993
Autoclave EtO
radiation Low stiction
VERSAFLEX™ CL AND DYNAFLEX™ TPEs
HIGH CLARITY
GRADES WITHOUT
PLASTICIZERS
• Water clear grades formulated without
phthalate plasticizers
• Meets medical regulatory USP Class VI and
ISO 10993-4,5
• Food contact and FDA compliant
• Autoclave and radiation stable
• Low extractable
• High clarity (Haze 50 4.1, 100 4.5, 100 4, 70 6, 70
Tensile Modulus (MPa) 2200 2700 2600 2350 1820 1820
Flexural Strength (MPa) 80 90 104 86 68 68
Flexural Modulus (MPa) 2500 2700 2500 2300 1980 1590
HDT: 0.45, 1.8 (MPa) 110, 80 90, 80 100, 89 123, 100 123, 64 100, 70
UL-94 Rating @ 3.0 mm 5VA V-0 5VA V-0 HB V-0
UL-94 Rating @ 1.5 mm V-0 V-0 5VB V-0 HB V-0
UL-94 Rating @ 0.75 mm V-1 V-2 V-0 None None V-2
COMPETITIVE MATERIAL COMPARISON
ENGINEERED POLYMER FORMULATIONS
FOR HEALTHCARE
TRILLIANT™ HC THERMOPLASTICS
The family of Trilliant™ HC high-performance thermoplastics is formulated to meet the growing challenges
of medical devices and equipment.
MATERIAL DESCRIPTION BASE RESIN
Trilliant™ HC2020 Copolyester
Trilliant™ HC8910/8920 Polyketone/ABS blend
Trilliant™ HC2120 Tritan
Trilliant™ HC3120 PC
Trilliant™ HC5210 PP
Trilliant™ HC6010 PA6
Trilliant™ HC6610 PA66
Trilliant™ GRV-NP-110-W PA12
TRILLIANT™ HC THERMOPLASTICS
• Chemically resistant replacement for FR PC/ABS,
FR PC/PET & FR COPE, providing UL 94 Yellow
Card V-0 flame rating at 1.5 mm, V-1 at 0.75 mm
thicknesses for a broad color spectrum
• Outperforms PC/ABS, PC/PET and COPE in
resistance to common disinfectants
• Retains tensile strength after 72-hour exposure
to common hospital disinfectants, and shows
better long-term chemical resistance as
compared to PC blends and COPE
• Exhibits good impact and temperature resistance
• Available in natural grades, standard medical
colors, or custom pre-colored products
• Medical device housings
• MRI, X-ray, CT scanner components
• Surgical instruments such as staplers, dissectors,
scissors
• Auto-injector pen
TRILLIANT™ HC
ELECTRICALLY
CONDUCTIVE
FORMULATIONS
• Consistent conductivity ensures repeatable
part performance and minimizes failures
related to inconsistent electrical conductivity
• High flow and easy processing facilitate filling
of thin wall parts and multiple cavity tools,
which enable faster cycle times and lower
per-unit part costs
• Superior durability reduces breakage and
resultant scrap related costs
• Less tendency to flash results in improved
appearance and less fluid retention in or on
the tip, thus driving greater accuracy and less
potential for cross-contamination
• High strength produces parts with greater
stiffness and warp resistance, again
minimizing scrap-related costs
• Conductive pipette tips
TEST
TEMS
SPECIFIC
GRAVITY
MELT FLOW
RATE
(230OC,
2.16KG)
TENSILE
FLEXURAL
FLEXURAL
MODULUS
IMPACT
STRENGTH
NOTCHED,
IZOD
SURFACE
RESISTIVITY
Method ASTM D-792 ASTM D-1238 ASTM D-638 ASTM D-790 ASTM D-790 ASTM D-256 ASTM D-257
Unit -- g/10min MPa MPa MPa J/m Ohms/sq.
https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202018.pdf
NIKE Website Sustainability Video
PolyOne Corporation 89
C O L O R M A T R I X S E L E C T ™
PolyOne Corporation 90
REDEFINING COLOR CREATION
Innovative system for processors and
OEMs to develop colors in real time
Complete system that provides
customers with the freedom to match,
prototype and produce color entirely
within their own facility
E N A B L I N G T H E C U S T O M E R
Empowers the customer to move at their speed by reducing complexity and
simplifying the supply chain.
3D printing.
PolyOne Corporation 91
S P E E D T O M A R K E T
From concept to production
99.9%
Reduction in
turnaround time
Traditional Timeline
up to 24 weeks
PolyOne ColorMatrix
Select™
6 hours
PolyOne Corporation 92
“Being able to create color
and produce parts in 1 day is
unheard of in this industry.
This system is clean and the
consistency of colored parts
from shot to shot is
excellent… We want to
purchase more dosers now.”
https://www.avient.com/sites/default/files/2021-06/avient-ir-presentation-may-2021-w-non-gaap-recs.pdf
Design times can be less than
three days for colorants.
There are significant revenue opportunities generated from the combined color and additive technology strengths of the two legacy companies.
APPENDIX
Performance
Additives
Pigments
TiO2
12%
Dyestuffs
4%Polyethylene
Nylon
Polypropylene
Other Raw
Materials
Styrenic Block
Copolymer
~1/3 hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
31
• Exiting 2020, the majority of hydrocarbon based raw
material markets were experiencing price inflation
and tight inventory
• Winter Storm Uri in the Gulf Coast caused further
stress on the situation for 2021
• Raw materials most impacted include polyethylene,
polypropylene and nylon
• We purchase over 8,000 different raw materials to
formulate our customized solutions and unique
specifications
Annual Purchases
RAW MATERIAL UPDATE
Based on 2020 pro forma purchases, excludes Distribution business
SEGMENT DATA
U.S. & Canada
50%
26%
16%
Latin America
2020 SEGMENT, END MARKET AND GEOGRAPHY
33
GEOGRAPHY REVENUESEGMENT FINANCIALS
21%Industrial
Building &
Electrical &
END MARKET REVENUE
All data reflects 2020 Pro forma for acquisition of the Clariant Masterbatch business.
(1) The total company sales and EBITDA of $3,783M and $457M, respectively, include intercompany sales eliminations and corporate costs
$2,043M
$331M
$709M
$124M
$1,110M
$70M
Sales EBITDA
Distribution
Specialty Engineered Materials
Color Additives and Inks
$457M$3,783M
35%
14%
Building &
Electrical &
C O L O R , A D D I T I V E S & I N K S
2020 PF REVENUE | $2 .0 BILLION
31%
40%
22%
Latin America
END MARKET REGION
34
2020 figures Pro forma for acquisition of the Clariant Masterbatch business
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
24%
Wire & Cable(1)
24%
Electrical &
13%
11%
Building &
2020 REVENUE | $709 MILLION
END MARKET
58%
19%
REGION
35
(1) Approximately 50% of Wire and Cable sales are associated with Fiber Optic Cabling
DI S TR IBU T I ON
2020 REVENUE | $1 .1 B ILL ION
25%
20%
14%
Electrical &
Building &
1%
82%
Latin
America
END MARKET REGION
K E Y S U P P L I ER S
36
TOTA L C O M PA N Y R E G I O N A L S A L E S
BY END MARKET
32%
27%
12%
Building &
Electrical &
9%
(16% of sales)
34%
16%Healthcare
17%
Building &
Electrical &
(26% of sales)
2020 figures Pro forma for acquisition of the Clariant Masterbatch business
37
26%
19%
13%
16%
Building &
Electrical &
US &
Canada
(50% of sales)
45%
Building &
Electrical &
2% Wire & Cable
1%
LATAM
(8% of sales)
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Dollars in millions, except for per share data)
March 31, 2021
Reconciliation to Condensed Consolidated Statements of Income
GAAP
Results
Special
Adjusted
Results
Income from continuing operations before income taxes $ 102.6 $ 2.4 $ 105.0
Income tax expense - GAAP (22.9) — (22.9)
Income tax impact of special items — (0.9) (0.9)
Tax adjustments — 1.1 1.1
Net income attributable to noncontrolling interests (0.4) — (0.4)
Net income from continuing operations attributable to Avient shareholders $ 79.3 $ 2.6 $ 81.9
Net income / EPS $ 0.86 0.03 $ 0.89
Weighted-average diluted shares 92.2 92.2 92.2
Reconciliation to Consolidated Statements of Income
March 31, 2021
Operating income - GAAP $ 120.4
Special items in operating income 2.4
Adjusted Operating income $ 122.8
1
Business Segment Operations
March 31,
Year Ended
December 31,
2021 2020 2020 2019 2018
Sales:
Color, Additives and Inks $ 609.3 $ 256.5 $ 1,502.9 $ 1,003.8 $ 1,046.5
Specialty Engineered Materials 216.5 185.3 708.8 745.7 645.8
Distribution 362.7 289.5 1,110.3 1,192.2 1,265.4
Corporate and eliminations (26.2) (19.8) (79.9) (79.0) (76.7)
Sales $ 1,162.3 $ 711.5 $ 3,242.1 $ 2,862.7 $ 2,881.0
Gross margin:
Color, Additives and Inks $ 197.5 $ 89.4 $ 484.4 $ 338.4 $ 353.4
Specialty Engineered Materials 64.7 52.6 207.6 200.2 171.7
Distribution 39.3 33.6 124.0 132.1 125.8
Corporate and eliminations 0.9 (4.1) (31.7) (13.5) (26.1)
Gross margin $ 302.4 $ 171.5 $ 784.3 $ 657.2 $ 624.8
Selling and administrative expense:
Color, Additives and Inks $ 108.7 $ 48.9 $ 303.6 $ 191.0 $ 194.9
Specialty Engineered Materials 30.5 30.3 113.2 116.5 99.4
Distribution 15.3 14.2 54.5 56.7 54.3
Corporate and eliminations 27.5 25.3 123.7 136.2 97.6
Selling and administrative expense $ 182.0 $ 118.7 $ 595.0 $ 500.4 $ 446.2
Operating income:
Color, Additives and Inks $ 88.8 $ 40.5 $ 180.8 $ 147.4 $ 158.5
Specialty Engineered Materials 34.2 22.3 94.4 83.7 72.3
Distribution 24.0 19.4 69.5 75.4 71.5
Corporate and eliminations (26.6) (29.4) (155.4) (149.7) (123.7)
Operating income $ 120.4 $ 52.8 $ 189.3 $ 156.8 $ 178.6
Earnings before interest, taxes, depreciation and
amortization (EBITDA):
Color, Additives and Inks $ 116.2 $ 51.4 $ 255.9 $ 190.1 $ 202.8
Specialty Engineered Materials 42.0 29.8 124.4 113.2 95.5
Distribution 24.2 19.5 70.2 75.9 72.2
Corporate and eliminations (24.9) (28.0) (146.2) (144.3) (119.3)
Other income, net 1.5 1.6 24.3 12.1 (12.9)
EBITDA $ 159.0 $ 74.3 $ 328.6 $ 247.0 $ 238.3
EBITDA as a % of Sales:
Color, Additives and Inks 19.1 % 20.0 % 17.0 % 18.9 % 19.4 %
Specialty Engineered Materials 19.4 % 16.1 % 17.6 % 15.2 % 14.8 %
Distribution 6.7 % 6.7 % 6.3 % 6.4 % 5.7 %
2
Reconciliation of Pro Forma EBITDA - Color,
Additives and Inks
Three Months Ended
March 31,
Year Ended
December 31,
2021 2020 2020 2019 2018
Sales:
Color, Additives and Inks $ 609.3 $ 256.5 $ 1,502.9 $ 1,003.8 $ 1,046.5
Clariant MB pro forma adjustments(1) — 279.4 540.4 1,118.6 1,209.8
Pro forma sales $ 609.3 $ 535.9 $ 2,043.3 $ 2,122.4 $ 2,256.3
Operating income:
Color, Additives and Inks $ 88.8 $ 40.5 $ 180.8 $ 147.4 $ 158.5
Clariant MB pro forma adjustments(1) — 23.0 45.0 72.9 80.3
Pro forma operating income $ 88.8 $ 63.5 $ 225.8 $ 220.3 $ 238.8
Depreciation & amortization:
Color, Additives and Inks $ 27.4 $ 10.9 $ 75.1 $ 42.7 $ 44.3
Clariant MB pro forma adjustments(1) — 15.1 30.1 60.3 61.2
Pro forma depreciation & amortization $ 27.4 $ 26.0 $ 105.2 $ 103.0 $ 105.5
Earnings Before Interest, Taxes, Depreciation
and Amortization (EBITDA):
Color, Additives and Inks $ 116.2 $ 51.4 $ 255.9 $ 190.1 $ 202.8
Clariant MB pro forma adjustments(1) — 38.1 75.1 133.2 141.5
Pro forma EBITDA $ 116.2 $ 89.5 $ 331.0 $ 323.3 $ 344.3
Pro forma EBITDA as a % of Sales 19.1 % 16.7 % 16.2 % 15.2 % 15.3 %
March 31, 2020
Reconciliation of Pro Forma Adjusted Earnings per
Share Avient
Special
Adjusted
Clariant MB
Pro Forma
Adjustments(1)
Pro Forma
Adjusted
Sales $ 711.5 $ — $ 711.5 $ 279.4 $ 990.9
Operating income 52.8 9.7 62.5 23.0 85.5
Interest expense, net (9.4) — (9.4) (12.8) (22.2)
Other income, net 1.6 (0.1) 1.5 — 1.5
Income taxes (11.9) (1.0) (12.9) (2.4) (15.3)
Net income from continuing operations attributable to
Avient shareholders $ 33.1 $ 8.6 $ 41.7 $ 7.8 $ 49.5
Weighted average diluted shares 86.7
Impact to diluted shares from January 2020 equity offering 6.1
Weighted average diluted shares 92.8
EPS $ 0.53
(1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition
3
Three Months Ended
June 30, 2020
Reconciliation of Pro Forma Adjusted Earnings per
Share Avient
Special
Adjusted
Clariant MB
Pro Forma
Adjustments(2)
Pro
Forma
Adjusted
Sales $ 609.1 $ — $ 609.1 $ 261.1 $ 870.2
Operating income $ 38.0 $ 9.0 $ 47.0 $ 22.0 $ 69.0
Interest expense, net (16.2) — (16.2) (5.3) (21.5)
Other income, net 9.5 (0.3) 9.2 — 9.2
Income taxes (7.9) 0.7 (7.2) (3.8) (11.0)
Net income attributable to non controlling interests
(0.4) — (0.4) — (0.4)
Net income from continuing operations attributable to
Avient shareholders $ 23.0 $ 9.4 $ 32.4 $ 12.9 $ 45.3
Weighted average diluted shares 91.8
Impact to diluted shares from January 2020 equity offering 15.3
Pro forma weighted average diluted shares 107.1
Pro forma adjusted EPS $ 0.42
(2) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition
Year Ended
December 31,
Reconciliation to Adjusted EBITDA 2020 2019 2018
Net income from continuing operations – GAAP $ 133.8 $ 75.7 $ 87.4
Income tax expense 5.2 33.7 14.4
Interest expense 74.6 59.5 62.8
Debt extinguishment cost — — 1.1
Depreciation and amortization from continuing operations 115.0 78.1 72.6
EBITDA $ 328.6 $ 247.0 $ 238.3
Special items, before tax 66.2 61.7 59.5
Interest expense included in special items (10.1) — —
Accelerated depreciation included in special items (3.2) — (3.0)
Adjusted EBITDA $ 381.6 $ 308.7 $ 294.8
4
December 31, 2020
Reconciliation of Pro Forma Adjusted
Earnings per Share Avient
Special
Adjusted
Clariant MB
Pro Forma
Adjustments(3)
Pro Forma
Adjusted
Sales $ 3,242.1 $ — $ 3,242.1 $ 540.4 $ 3,782.5
Operating income $ 189.3 $ 73.7 $ 263.0 $ 45.0 $ 308.0
Interest expense, net (74.6) 10.1 (64.5) (18.1) (82.6)
Other income, net 24.3 (17.6) 6.7 — 6.7
Income taxes (5.2) (41.4) (46.6) (6.2) (52.8)
Net income attributable to noncontrolling
interests (1.8) — (1.8) — (1.8)
Net income from continuing operations
attributable to Avient shareholders $ 132.0 $ 24.8 $ 156.8 $ 20.7 $ 177.5
Weighted average diluted shares 90.6
Impact to diluted shares from January 2020 equity offering 1.5
Pro forma weighted average diluted shares 92.1
Pro forma adjusted EPS $ 1.93
Reconciliation of Pro Forma Adjusted
EBITDA from continuing operations
Operating income and other income, net $ 213.6 $ — $ 56.1 $ 269.7 $ 45.0 $ — $ 314.7
Depreciation and amortization 115.0 (3.2) 111.8 30.1 141.9
EBITDA from continuing operations $ 328.6 $ 52.9 $ 381.5 $ 75.1 $ 456.6
December 31, 2019
Reconciliation of Pro Forma Adjusted
Earnings per Share Avient
Special
Adjusted
Clariant MB
Pro Forma
Adjustments(1)
Pro Forma
Adjusted
Sales $ 2,862.7 $ — $ 2,862.7 $ 1,118.6 $ 3,981.3
Operating income $ 156.8 $ 71.7 $ 228.5 $ 72.9 $ 301.4
Interest expense, net (59.5) — (59.5) (33.4) (92.9)
Other income, net 12.1 (10.0) 2.1 — 2.1
Income taxes (33.7) (5.9) (39.6) (9.1) (48.7)
Net income attributable to noncontrolling
interests (0.2) — (0.2) — (0.2)
Net income from continuing operations
attributable to Avient shareholders $ 75.5 $ 55.8 $ 131.3 $ 30.4 $ 161.7
Weighted average diluted shares 77.7
Impact to diluted shares from January 2020 equity offering 15.3
Pro forma weighted average diluted shares 93.0
Pro forma adjusted EPS $ 1.74
Reconciliation of Pro Forma Adjusted
EBITDA from continuing operations
Operating income and other income, net $ 168.9 $ — $ 61.7 $ 230.6 $ 72.9 $ — $ 303.5
Depreciation and amortization 78.1 — 78.1 60.3 138.4
EBITDA from continuing operations $ 247.0 $ 61.7 $ 308.7 $ 133.2 $ 441.9
(3) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition
5
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