https://www.avient.com/sites/default/files/2020-11/investing-in-avient_0.pdf
We are Avient.
4
BETTER TOGETHER: POLYONE AND
CLARIANT MASTERBATCH
Key Data
2020 PF Sales
$3.7 billion
2020 PF EBITDA
$440 million ($515M w/synergies)
2020E Free Cash Flow $270 million
(1) Estimated Pro forma for the acquisition of the Clariant Masterbatch business
87% of EBITDA from specialty applications
U.S. & Canada
49%
25%
17%
Latin America
SEGMENT, END MARKET AND GEOGRAPHY
5
GEOGRAPHY REVENUESEGMENT FINANCIALS
21%Industrial
Building &
Electrical &
END MARKET REVENUE
All data reflects 2020 estimate and Pro forma for acquisition of the Clariant Masterbatch business
It’s why we win.
11
474
644
925
107
147
212
467
616
858
2014 2018 2020PF
R&D / Technical Marketing Sales
Commercial Resources
+ 36%
+ 37%
+ 32%
+ 44%
+ 44%
+ 39%
Headcount figures are Pro forma for the sale of Designed Structures and Solutions (DSS) and Performance Products and Solutions (PP&S)
segments and the acquisition of the Clariant Masterbatch business. 2020PF data as of October 31, 2020.
https://www.avient.com/sites/default/files/2020-10/investing-in-avient.pdf
We are Avient.
4
BETTER TOGETHER: POLYONE AND
CLARIANT MASTERBATCH
Key Data
2020 PF Sales
$3.7 billion
2020 PF EBITDA
$425 million ($500M w/synergies)
Free Cash Flow $240 million
(1) Estimated Pro forma for the acquisition of the Clariant Masterbatch business
87% of EBITDA from specialty applications
U.S. & Canada
49%
25%
17%
Latin America
SEGMENT, END MARKET AND GEOGRAPHY
5
GEOGRAPHY REVENUESEGMENT FINANCIALS
21%Industrial
Building &
Electrical &
END MARKET REVENUE
All data reflects 2020 estimate and Pro forma for acquisition of the Clariant Masterbatch business.
(1) The total company sales and EBITDA of $3,650M and $425M, respectively, include intercompany sales eliminations and corporate costs
$2,000M
$310M
$685M
$115M
$1,050M
$65M
Sales EBITDA
Distribution
Specialty Engineered Materials
Color Additives and Inks
$425M$3,650M
Innovation is the lifeblood of a specialty company.
It’s why we win.
11
474
644
924
107
147
208
467
616
872
2014 2018 2020PF
R&D / Technical Marketing Sales
Commercial Resources
+ 36%
+ 37%
+ 32%
+ 43%
+ 41%
+ 42%
Headcount figures are Pro forma for the sale of Designed Structures and Solutions (DSS) and Performance Products and Solutions (PP&S)
segments and the acquisition of the Clariant Masterbatch business. 2020PF data as of August 31, 2020.
https://www.avient.com/sites/default/files/2021-09/avnt-q2-2021-earnings-presentation.pdf
Operating Income
$3,783
$4,300
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Previous
Guidance
Current
Guidance
$3,783
$4,650
$308
$410
$308
$430
$1.93
$2.80
$1.93
$3.00
(1) (1)(1)
(1)(1) (1)
$442
$457
$580
$1.74
$1.93
$3.00
FULL YEAR 2019 – 2021 ORGANIC GROWTH
16
Sales Adjusted EBITDA
$3,981
$3,783
$4,650
+ 17%
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(1)(1)
+ 31% + 72%
($ in millions)
2021E Adjusted EBITDA 580$
Free Cash Flow 280$
Total Debt 1,860
Less: Cash (755)
Net Debt 1,105$
2021E Net Debt / Adjusted EBITDA 1.9x
17
BALANCE SHEET
• Acquisition of Magna Colours completed on
July 1 – expands sustainable solutions
portfolio through water-based inks technology
• Deleveraging to 1.9x net debt to adjusted
EBITDA by the end of 2021
• Driven by record adjusted EBITDA
performance and strong free cash flow
generation from asset light business
• Future cash deployment: M&A, opportunistic
share repurchases and balance sheet /
continued leverage reduction
3.5x
2.7x
1.9x
Net Debt / Adjusted EBITDA
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
SUSTAINABILITY FOR A BETTER TOMORROW
• Revenue from sustainable solutions expected to
grow 14% in 2021 as our innovation efforts and
collaboration with customers continues to accelerate
• Investments centered around innovation and global
sustainability megatrends
o Enabling a circular economy – Technologies that
allow for increased use of post-consumer recycled
(PCR) material and improve recyclability of plastics
o Light-weighting – Composites and CAI applications
to reduce weight and material requirements, which
minimize energy and carbon emissions
o Eco-Conscious – Health and human safety
applications as well as Avient’s alternative materials
to replace lead, PVC, halogens, BPA and other less
eco-friendly options
2016 2017 2018 2019 2020PF**
Bio-polymers Reduced Energy Use Human Health & Safety
Sustainable Infrastructure VOC Reduction Recycle Solutions
Eco-Conscious Lightweighting
Revenue From Sustainable Solutions* 2016-2020
$405M
$455M
*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 Masterbatch business
$340M
$550M
$790M
19
Key Updates
• Includes Clariant Masterbatch performance
• Increases disclosures and ESG data
• Provides performance updates on 2030 Sustainability Goals
• Commits to operational carbon neutrality in 2050 and 100%
renewable energy by 2050 (RE 100)
• Announces Avient’s participation in U.N.
APPENDIX
Performance
Additives
Pigments
TiO2
Dyestuffs
4%Polyethylene
Nylon
Polypropylene
Other Raw
Materials
29%
Styrenic Block
Copolymer
~1/3 hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
28
• In Q2 2021, several raw material markets
experienced significant price inflation and
tight inventory
o Average cost of hydrocarbon based materials
was up 45% year-over-year and 20%
sequentially
o Average cost of non-hydrocarbon based
materials was up 10% year-over-year and 8%
sequentially
• Additionally, we experienced other supply
chain challenges during Q2 related to raw
material spot purchases, freight constraints
and productivity loss as a result of these
shortages
Annual Purchases
RAW MATERIAL AND SUPPLY CHAIN UPDATE
Based on 2020 pro forma purchases, excludes Distribution business
SEGMENT DATA
U.S. & Canada
50%
26%
Latin America
2021 YTD SEGMENT, END MARKET AND GEOGRAPHY
30
GEOGRAPHY REVENUESEGMENT FINANCIALS
23%
Building and
9%
END MARKET REVENUE
(1) Total company sales and EBITDA of $2,398M and $320M, respectively, include intercompany sales eliminations and corporate costs
All charts reflect YTD financials through June 30
$1,234M
$228M
$457M
$87M
$767M
$48M
Sales EBITDA
Distribution
Specialty Engineered Materials
Color Additives and Inks
$320M$2,398M
14%
34%
21%
Building &
9%
2% Telecommunications
C O L O R , A D D I T I V E S & I N K S
2021 YTD REVENUE | $1 .2 BILL ION
31%
42%
21%
Latin America
END MARKET REGION
31
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
28%
Building &
2021 YTD REVENUE | $457 MILLION
END MARKET
54%
26%
REGION
32
DI S TR IBU T I ON
27%
22%
Building and
81%
Latin
America
END MARKET REGION
K E Y S U P P L I ER S
2021 YTD REVENUE | $767 MILLION
33
TOTA L C O M PA N Y R E G I O N A L S A L E S
BY END MARKET
30%
27%Healthcare
Building &
2% Energy
(16% of sales)
32%
13%
18%
Building &
(26% of sales)
34
25%
19%
Building &
US &
Canada
(50% of sales)
13%
40%
33%
Building &
LATAM
(8% of sales)
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Dollars in millions, except for per share data)
June 30, 2021
Reconciliation to Condensed Consolidated Statements of Income
GAAP
Special
Adjusted
Operating income $ 108.1 $ 14.2 $ 122.3
Income from continuing operations before income taxes $ 89.8 $ 14.2 $ 104.0
Income tax expense - GAAP (20.4) — (20.4)
Income tax impact of special items — (3.4) (3.4)
Tax adjustments — 0.9 0.9
Net income attributable to noncontrolling interests (0.6) — (0.6)
Net income from continuing operations attributable to Avient shareholders $ 68.8 $ 11.7 $ 80.5
Net income / EPS $ 0.74 $ 0.13 $ 0.87
Weighted-average diluted shares 92.4 92.4 92.4
September 30, 2020
Reconciliation to Condensed Consolidated Statements of Income
GAAP
Special
Adjusted
Operating income $ 33.5 $ 40.4 $ 73.9
Income from continuing operations before income taxes $ 5.3 $ 50.0 $ 55.3
Income tax expense - GAAP (2.7) — (2.7)
Income tax impact of special items — (12.7) (12.7)
Tax adjustments — 3.0 3.0
Net income attributable to noncontrolling interests (0.9) — (0.9)
Net income from continuing operations attributable to Avient shareholders $ 1.7 $ 40.3 $ 42.0
Net income / EPS $ 0.02 $ 0.44 $ 0.46
Weighted-average diluted shares 91.9 91.9 91.9
Three Months Ended
Year Ended
December 31,
Reconciliation to Pro Forma Adjusted EBITDA
2021
March 31,
2021
June 30,
2020 2020 2019
Net income from continuing operations – GAAP $ 69.4 $ 79.7 $ 23.4 $ 133.8 $ 75.7
Income tax expense 20.4 22.9 7.9 5.2 33.7
Interest expense 19.5 19.3 16.2 74.6 59.5
Depreciation and amortization from continuing operations 33.8 37.1 20.9 115.0 78.1
EBITDA $ 143.1 $ 159.0 $ 68.4 $ 328.6 $ 247.0
Special items, before tax 14.2 2.4 2.4 66.2 61.7
Interest expense included in special items — — (0.5) (10.1) —
Depreciation and amortization included in special items 1.4 (0.5) (1.2) (3.2) —
Adjusted EBITDA $ 158.7 $ 160.9 $ 69.1 $ 381.6 $ 308.7
Clariant MB pro forma adjustments(1) — — 37.0 75.1 133.2
Pro forma adjusted EBITDA $ 158.7 $ 160.9 $ 106.1 $ 456.7 $ 441.9
(1) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
1
Reconciliation of EBITDA by Segment
Six
Months
Ended
December 31,
2021 2020 2021 2020 2019 2018
Sales:
Color, Additives and Inks $ 624.4 $ 226.8 $ 1,233.7 $ 483.3 $ 1,502.9 $ 1,003.8
Specialty Engineered Materials 240.6 158.8 457.1 344.1 708.8 745.7
Distribution 404.4 238.8 767.1 528.3 1,110.3 1,192.2
Corporate and eliminations (34.2) (15.3) (60.4) (35.1) (79.9) (79.0)
Sales $ 1,235.2 $ 609.1 $ 2,397.5 $ 1,320.6 $ 3,242.1 $ 2,862.7
Operating income:
Color, Additives and Inks $ 86.3 $ 32.3 $ 175.1 $ 180.8 $ 147.4 $ 158.5
Specialty Engineered Materials 37.3 17.0 71.5 94.4 83.7 72.3
Distribution 23.7 14.6 47.7 69.5 75.4 71.5
Corporate and eliminations (39.2) (25.9) (65.8) (155.4) (149.7) (123.7)
Operating income $ 108.1 $ 38.0 $ 228.5 $ 189.3 $ 156.8 $ 178.6
Items below OI in Corporate:
Other income, net $ 1.2 $ 9.5 $ 2.7 $ 24.3 $ 12.1 $ (12.9)
Depreciation & amortization:
Color, Additives and Inks $ 25.3 $ 10.6 $ 52.6 $ 75.1 $ 42.7 $ 44.3
Specialty Engineered Materials 8.1 7.6 15.9 30.0 29.5 23.2
Distribution 0.2 0.1 0.4 0.7 0.5 0.7
Corporate and eliminations 0.2 2.6 2.0 9.2 5.4 4.4
Depreciation & Amortization $ 33.8 $ 20.9 $ 70.9 $ 115.0 $ 78.1 $ 72.6
EBITDA:
Color, Additives and Inks $ 111.6 $ 42.9 $ 227.7 $ 255.9 $ 190.1 $ 202.8
Specialty Engineered Materials 45.4 24.6 87.4 124.4 113.2 95.5
Distribution 23.9 14.7 48.1 70.2 75.9 72.2
Corporate and eliminations (39.0) (23.3) (63.8) (146.2) (144.3) (119.3)
EBITDA $ 143.1 $ 68.4 $ 302.1 $ 328.6 $ 247.0 $ 238.3
EBITDA as a % of Sales:
Color, Additives and Inks 17.9 % 18.9 % 18.5 % 17.0 % 18.9 % 19.4 %
Specialty Engineered Materials 18.9 % 15.5 % 19.1 % 17.6 % 15.2 % 14.8 %
Distribution 5.9 % 6.2 % 6.3 % 6.3 % 6.4 % 5.7 %
2
Reconciliation of Pro Forma EBITDA
- Color, Additives and Inks
Three Months Ended
June 30,
Six
Months
Ended
Year Ended
December 31,
2021 2020 2021 2020 2019 2018
Sales:
Color, Additives and Inks $ 624.4 $ 226.8 $ 1,233.7 $ 1,502.9 $ 1,003.8 $ 1,046.5
Clariant MB pro forma
adjustments(1) — 261.1 — 540.4 1,118.6 1,209.8
Pro forma sales $ 624.4 $ 487.9 $ 1,233.7 $ 2,043.3 $ 2,122.4 $ 2,256.3
Operating income:
Color, Additives and Inks $ 86.3 $ 32.3 $ 175.1 $ 180.8 $ 147.4 $ 158.5
Clariant MB pro forma
adjustments(1) — 22.0 — 45.0 72.9 80.3
Pro forma operating income $ 86.3 $ 54.3 $ 175.1 $ 225.8 $ 220.3 $ 238.8
Depreciation & amortization:
Color, Additives and Inks $ 25.3 $ 10.6 $ 52.6 $ 75.1 $ 42.7 $ 44.3
Clariant MB pro forma adjustments(1) — 15.0 — 30.1 60.3 61.2
Pro forma depreciation & amortization $ 25.3 $ 25.6 $ 52.6 $ 105.2 $ 103.0 $ 105.5
EBITDA
Color, Additives and Inks $ 111.6 $ 42.9 $ 227.7 $ 255.9 $ 190.1 $ 202.8
Clariant MB pro forma
adjustments(1) — 37.0 — 75.1 133.2 141.5
Pro forma EBITDA $ 111.6 $ 79.9 $ 227.7 $ 331.0 $ 323.3 $ 344.3
Pro forma EBITDA as a % of Sales 17.9 % 16.4 % 18.5 % 16.2 % 15.2 % 15.3 %
Three Months Ended
June 30, 2020
Reconciliation of Pro Forma Adjusted Earnings per
Share Avient
Special
Adjusted
Clariant MB
Pro Forma
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 (6.6) 2.9 — 2.9
Income taxes (7.9) 0.2 (7.7) (3.8) (11.5)
Net income attributable to noncontrolling interests (0.4) — (0.4) — (0.4)
Net income from continuing operations attributable to
Avient shareholders $ 23.0 $ 2.6 $ 25.6 $ 12.9 $ 38.5
Weighted average diluted shares 91.8
Pro forma adjusted EPS $ 0.42
3
December 31, 2020
Reconciliation of Pro Forma Adjusted
Earnings per Share Avient
Special
Adjusted
Clariant MB
Pro Forma
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
December 31, 2019
Reconciliation of Pro Forma Adjusted
Earnings per Share Avient
Special
Adjusted
Clariant MB
Pro Forma
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
4
AVNT Q2 2021 Earnings Presentation - Website NEW.pdf
AVNT Q2 2021 Earnings Presentation - Website.pdf
Final - 7.19 1158am Q2 21 IR Deck Version v2
https://www.avient.com/sites/default/files/2023-06/AVNT June IR Conferences w_Non GAAP Recs.pdf
Continue fostering our Great Place
to Work® culture
Strategic ObjectivesStrategic Objectives
Long Term
Growth
Rates
Growth DriversGrowth Drivers
$340
$455
$790
$1,175
$51
$84
$212
$668
$108 $113
$231
$293
$265
$358
$726
$830
8-12% 10% 8-10% 5%
Sustainable Solutions Composites Healthcare Asia/Emerging Regions
Profitable GrowthProfitable Growth Great Place to WorkGreat Place to Work
5.4%
11.5%
16.2%
2006 2018 2022
EBITDA Margins
$0.14
$2.67
$3.04
2006 2018 2022
2022 data is pro forma for acquisition of Avient Protective Materials and Distribution divestiture
TOP-TIER SUSTAINABILITY PERFORMANCE
AND RECOGNITION
Industry Sustainability Standards
90th
percentile
84th
ESG Ratings Performance
1
Innovation is the lifeblood of a specialty company.
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 18
DEFENSE
Source: US Department of Defense, defense.gov, NATO18
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
19
$130
$530
$0.60
$2.40
2023 GUIDANCE
20
Sales Adjusted EBITDA
$845
$3,400
(in millions) (in millions)
CASH FLOW / LEVERAGE
21
• Maintaining free cash flow
and leverage guidance from
February earnings call
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Restructuring actions to
streamline operations and
improve profitability,
primarily in Europe
($ 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%
22
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 23
SUSTAINABILITY
INVESTOR DAY
23
$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%
24
*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
25
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
26
AP P EN D IX
29
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
37%
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
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%
31
(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
32
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
33
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
12%
Building &
US &
Canada
(40% of sales)
56%
23%
Building &
1%
LATAM
(5% of sales)
3%
34
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.
36
4 4
4
6
8
9
FREE CASH FLOW CONVERSION
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
Avient 2011 and 2018 valuations reflect trailing 12 months EBITDA at December 31 of the respective years.
38
EV / 2023E EBITDA
Historic Multiple
6.5
8.3
9.6
13.2 13.0 12.8
11.3
8.6
17.9
16.8
10.7
8.8 8.8 8.7
7.5
6.9
01
1)
01
8)
02
3)
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.
https://www.avient.com/sites/default/files/2020-10/tpe-injection-molding-guide.pdf
Specific drying temperatures and
times can be found on the technical data sheets for each individual product.
If using a specialty overmolding grade, follow the
coloring recommendations given on the individual product technical data sheets.
The specific
starting conditions for each individual product are located in the product technical
data sheet.
https://www.avient.com/sites/default/files/2024-09/Terms and Conditions of Sale for Poland.pdf
Buyer acknowledges that
information in Seller’s marketing materials, technical
data sheets and other descriptive publications distributed
or published on its websites may vary from time to time
without notice.
Buyer acknowledges that Seller
has furnished to Buyer Safety Data Sheets, which include
warnings together with safety and health information
15.
Buyer
acknowledges and represents that it is familiar with and
shall strictly comply with all applicable laws and
regulations concerning the trade, export or re-export of
products, services, data or technology (“Items”),
including, but not limited to, the International Traffic in
Arms Regulations (ITAR), the Export Administration
Regulations (EAR), the trade sanctions regulations
administered by the U.S.
https://www.avient.com/sites/default/files/2021-06/avient-ir-presentation-june-2021-w-non-gaap-recs_0.pdf
We are Avient.
6
BETTER TOGETHER: POLYONE AND
CLARIANT MASTERBATCH
Key Financial Data (1)
2021E Sales $4.3 billion
2021E EBITDA $560 million
2021E Free Cash Flow $275 million
88% of EBITDA from specialty applications
(1) As of April 30, 2021 webcast
Synergies
($ millions)
Three-Year
Estimate
Administrative $ 20
Sourcing 30
Operational 25
Total Synergies $ 75
7
CLARIANT COST SYNERGIES
• On-track to realize $45 million of expected
synergies in 2021 – up from previous estimate of
$35 million
• Relentless focus on guiding principles for
acquisition integration: safety first, employee
collaboration and exceeding customer expectations
• Future revenue synergies in excess of $50 million
by 2025 are not part of these estimates and
represent additional growth over the long term
8
• Barrier technology
• Functional additives
• Processing aids
• Flame retardants
• Light-weighting
additives
Complementary
Technologies
• Clariant’s approved
formulations and
certified facilities
• Legacy PolyOne’s
leading share in
distribution channels
Healthcare
Solutions
• Clariant’s position
in SE Asia,
Latin America,
Germany & Italy
• Legacy PolyOne’s
position in U.S.,
Canada and China
Regional
Strengths
• Solutions with Avient’s
engineered materials
customers
• Avient’s distribution
channels
Segment
Cross-selling
COMPLEMENTARY TECHNOLOGIES AND
CUSTOMERS DRIVE REVENUE SYNERGIES
Revenue synergy opportunities in excess of $50MM by 2025
The complementary aspects of our combined businesses are unquestionable.
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
Avient IR Presentation - June 2021.pdf
Avient IR Presentation - June 2021 w Non GAAP Recs.pdf
Avient IR Presentation - May 2021 w Non-GAAP Recs.pdf
AVNT First Quarter 2021 Earnings Presentation.pdf
AVNT First Quarter 2021 Earnings Presentation.pdf
AVNT First Quarter 2021 Earnings Presentation.pdf
AVNT First Quarter 2021 Earnings Presentation.pdf
4.29 127pm Q1 21 IR Deck Version non-GAAP Recs (002).pdf
https://www.avient.com/sites/default/files/2021-09/avnt-seaport-conference-presentation.pdf
We are Avient.
6
BETTER TOGETHER: POLYONE AND
CLARIANT MASTERBATCH
Key Financial Data (1)
2021E Sales $4.6 - $4.7 billion
2021E EBITDA $580 million
2021E Free Cash Flow $280 million
87% of EBITDA from specialty applications
(1) As of July 30, 2021 webcast
Synergies
($ millions)
Three-Year
Estimate
Administrative $ 20
Sourcing 30
Operational 25
Total Synergies $ 75
7
CLARIANT COST SYNERGIES
• On-track to realize $45 million of expected
synergies in 2021 – up from previous estimate of
$35 million
• Relentless focus on guiding principles for
acquisition integration: safety first, employee
collaboration and exceeding customer expectations
• Future revenue synergies in excess of $50 million
by 2025 are not part of these estimates and
represent additional growth over the long term
8
• Barrier technology
• Functional additives
• Processing aids
• Flame retardants
• Light-weighting
additives
Complementary
Technologies
• Clariant’s approved
formulations and
certified facilities
• Legacy PolyOne’s
leading share in
distribution channels
Healthcare
Solutions
• Clariant’s position
in SE Asia,
Latin America,
Germany & Italy
• Legacy PolyOne’s
position in U.S.,
Canada and China
Regional
Strengths
• Solutions with Avient’s
engineered materials
customers
• Avient’s distribution
channels
Segment
Cross-selling
COMPLEMENTARY TECHNOLOGIES AND
CUSTOMERS DRIVE REVENUE SYNERGIES
Revenue synergy opportunities in excess of $50MM by 2025
The complementary aspects of our combined businesses are unquestionable.
Operating Income
$3,783
$4,300
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Previous
Guidance
Current
Guidance
$3,783
$4,650
$308
$410
$308
$430
$1.93
$2.80
$1.93
$3.00
(1) (1)(1)
(1)(1) (1)
$442
$457
$580
$1.74
$1.93
$3.00
FULL YEAR 2019 – 2021 ORGANIC GROWTH
22
Sales Adjusted EBITDA
$3,981
$3,783
$4,650
+ 17%
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(1)(1)
+ 31% + 72%
($ in millions)
2021E Adjusted EBITDA 580$
Free Cash Flow 280$
Total Debt 1,860
Less: Cash (755)
Net Debt 1,105$
2021E Net Debt / Adjusted EBITDA 1.9x
23
BALANCE SHEET
• Acquisition of Magna Colours completed on
July 1 – expands sustainable solutions
portfolio through water-based inks technology
• Deleveraging to 1.9x net debt to adjusted
EBITDA by the end of 2021
• Driven by record adjusted EBITDA
performance and strong free cash flow
generation from asset light business
• Future cash deployment: M&A, opportunistic
share repurchases and balance sheet /
continued leverage reduction
3.5x
2.7x
1.9x
Net Debt / Adjusted EBITDA
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
SUSTAINABILITY FOR A BETTER TOMORROW
• Revenue from sustainable solutions expected to
grow 14% in 2021 as our innovation efforts and
collaboration with customers continues to accelerate
• Investments centered around innovation and global
sustainability megatrends
o Enabling a circular economy – Technologies that
allow for increased use of post-consumer recycled
(PCR) material and improve recyclability of plastics
o Light-weighting – Composites and CAI applications
to reduce weight and material requirements, which
minimize energy and carbon emissions
o Eco-Conscious – Health and human safety
applications as well as Avient’s alternative materials
to replace lead, PVC, halogens, BPA and other less
eco-friendly options
2016 2017 2018 2019 2020PF**
Bio-polymers Reduced Energy Use Human Health & Safety
Sustainable Infrastructure VOC Reduction Recycle Solutions
Eco-Conscious Lightweighting
Revenue From Sustainable Solutions* 2016-2020
$405M
$455M
*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 Masterbatch business
$340M
$550M
$790M
25
Key Updates
• Includes Clariant Masterbatch performance
• Increases disclosures and ESG data
• Provides performance updates on 2030 Sustainability Goals
• Commits to operational carbon neutrality in 2050 and 100%
renewable energy by 2050 (RE 100)
• Announces Avient’s participation in U.N.
APPENDIX
Performance
Additives
Pigments
TiO2
Dyestuffs
4%Polyethylene
Nylon
Polypropylene
Other Raw
Materials
29%
Styrenic Block
Copolymer
~1/3 hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
34
• In Q2 2021, several raw material markets
experienced significant price inflation and
tight inventory
o Average cost of hydrocarbon based materials
was up 45% year-over-year and 20%
sequentially
o Average cost of non-hydrocarbon based
materials was up 10% year-over-year and 8%
sequentially
• Additionally, we experienced other supply
chain challenges during Q2 related to raw
material spot purchases, freight constraints
and productivity loss as a result of these
shortages
Annual Purchases
RAW MATERIAL AND SUPPLY CHAIN UPDATE
Based on 2020 pro forma purchases, excludes Distribution business
SEGMENT DATA
U.S. & Canada
50%
26%
Latin America
2021 YTD SEGMENT, END MARKET AND GEOGRAPHY
36
GEOGRAPHY REVENUESEGMENT FINANCIALS
23%
Building and
9%
END MARKET REVENUE
(1) Total company sales and EBITDA of $2,398M and $320M, respectively, include intercompany sales eliminations and corporate costs
All charts reflect YTD financials through June 30
$1,234M
$228M
$457M
$87M
$767M
$48M
Sales EBITDA
Distribution
Specialty Engineered Materials
Color Additives and Inks
$320M$2,398M
14%
34%
21%
Building &
9%
2% Telecommunications
C O L O R , A D D I T I V E S & I N K S
2021 YTD REVENUE | $1 .2 BILL ION
31%
42%
21%
Latin America
END MARKET REGION
37
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
28%
Building &
2021 YTD REVENUE | $457 MILLION
END MARKET
54%
26%
REGION
38
DI S TR IBU T I ON
27%
22%
Building and
81%
Latin
America
END MARKET REGION
K E Y S U P P L I ER S
2021 YTD REVENUE | $767 MILLION
39
TOTA L C O M PA N Y R E G I O N A L S A L E S
BY END MARKET
30%
27%Healthcare
Building &
2% Energy
(16% of sales)
32%
13%
18%
Building &
(26% of sales)
40
25%
19%
Building &
US &
Canada
(50% of sales)
13%
40%
33%
Building &
LATAM
(8% of sales)
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Dollars in millions, except for per share data)
June 30, 2021
Reconciliation to Condensed Consolidated Statements of Income
GAAP
Special
Adjusted
Operating income $ 108.1 $ 14.2 $ 122.3
Income from continuing operations before income taxes $ 89.8 $ 14.2 $ 104.0
Income tax expense - GAAP (20.4) — (20.4)
Income tax impact of special items — (3.4) (3.4)
Tax adjustments — 0.9 0.9
Net income attributable to noncontrolling interests (0.6) — (0.6)
Net income from continuing operations attributable to Avient shareholders $ 68.8 $ 11.7 $ 80.5
Net income / EPS $ 0.74 $ 0.13 $ 0.87
Weighted-average diluted shares 92.4 92.4 92.4
September 30, 2020
Reconciliation to Condensed Consolidated Statements of Income
GAAP
Special
Adjusted
Operating income $ 33.5 $ 40.4 $ 73.9
Income from continuing operations before income taxes $ 5.3 $ 50.0 $ 55.3
Income tax expense - GAAP (2.7) — (2.7)
Income tax impact of special items — (12.7) (12.7)
Tax adjustments — 3.0 3.0
Net income attributable to noncontrolling interests (0.9) — (0.9)
Net income from continuing operations attributable to Avient shareholders $ 1.7 $ 40.3 $ 42.0
Net income / EPS $ 0.02 $ 0.44 $ 0.46
Weighted-average diluted shares 91.9 91.9 91.9
Three Months Ended
Year Ended
December 31,
Reconciliation to Pro Forma Adjusted EBITDA
2021
March 31,
2021
June 30,
2020 2020 2019
Net income from continuing operations – GAAP $ 69.4 $ 79.7 $ 23.4 $ 133.8 $ 75.7
Income tax expense 20.4 22.9 7.9 5.2 33.7
Interest expense 19.5 19.3 16.2 74.6 59.5
Depreciation and amortization from continuing operations 33.8 37.1 20.9 115.0 78.1
EBITDA $ 143.1 $ 159.0 $ 68.4 $ 328.6 $ 247.0
Special items, before tax 14.2 2.4 2.4 66.2 61.7
Interest expense included in special items — — (0.5) (10.1) —
Depreciation and amortization included in special items 1.4 (0.5) (1.2) (3.2) —
Adjusted EBITDA $ 158.7 $ 160.9 $ 69.1 $ 381.6 $ 308.7
Clariant MB pro forma adjustments(1) — — 37.0 75.1 133.2
Pro forma adjusted EBITDA $ 158.7 $ 160.9 $ 106.1 $ 456.7 $ 441.9
(1) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
1
Reconciliation of EBITDA by Segment
Six
Months
Ended
December 31,
2021 2020 2021 2020 2019 2018
Sales:
Color, Additives and Inks $ 624.4 $ 226.8 $ 1,233.7 $ 483.3 $ 1,502.9 $ 1,003.8
Specialty Engineered Materials 240.6 158.8 457.1 344.1 708.8 745.7
Distribution 404.4 238.8 767.1 528.3 1,110.3 1,192.2
Corporate and eliminations (34.2) (15.3) (60.4) (35.1) (79.9) (79.0)
Sales $ 1,235.2 $ 609.1 $ 2,397.5 $ 1,320.6 $ 3,242.1 $ 2,862.7
Operating income:
Color, Additives and Inks $ 86.3 $ 32.3 $ 175.1 $ 180.8 $ 147.4 $ 158.5
Specialty Engineered Materials 37.3 17.0 71.5 94.4 83.7 72.3
Distribution 23.7 14.6 47.7 69.5 75.4 71.5
Corporate and eliminations (39.2) (25.9) (65.8) (155.4) (149.7) (123.7)
Operating income $ 108.1 $ 38.0 $ 228.5 $ 189.3 $ 156.8 $ 178.6
Items below OI in Corporate:
Other income, net $ 1.2 $ 9.5 $ 2.7 $ 24.3 $ 12.1 $ (12.9)
Depreciation & amortization:
Color, Additives and Inks $ 25.3 $ 10.6 $ 52.6 $ 75.1 $ 42.7 $ 44.3
Specialty Engineered Materials 8.1 7.6 15.9 30.0 29.5 23.2
Distribution 0.2 0.1 0.4 0.7 0.5 0.7
Corporate and eliminations 0.2 2.6 2.0 9.2 5.4 4.4
Depreciation & Amortization $ 33.8 $ 20.9 $ 70.9 $ 115.0 $ 78.1 $ 72.6
EBITDA:
Color, Additives and Inks $ 111.6 $ 42.9 $ 227.7 $ 255.9 $ 190.1 $ 202.8
Specialty Engineered Materials 45.4 24.6 87.4 124.4 113.2 95.5
Distribution 23.9 14.7 48.1 70.2 75.9 72.2
Corporate and eliminations (39.0) (23.3) (63.8) (146.2) (144.3) (119.3)
EBITDA $ 143.1 $ 68.4 $ 302.1 $ 328.6 $ 247.0 $ 238.3
EBITDA as a % of Sales:
Color, Additives and Inks 17.9 % 18.9 % 18.5 % 17.0 % 18.9 % 19.4 %
Specialty Engineered Materials 18.9 % 15.5 % 19.1 % 17.6 % 15.2 % 14.8 %
Distribution 5.9 % 6.2 % 6.3 % 6.3 % 6.4 % 5.7 %
2
Reconciliation of Pro Forma EBITDA
- Color, Additives and Inks
Three Months Ended
June 30,
Six
Months
Ended
Year Ended
December 31,
2021 2020 2021 2020 2019 2018
Sales:
Color, Additives and Inks $ 624.4 $ 226.8 $ 1,233.7 $ 1,502.9 $ 1,003.8 $ 1,046.5
Clariant MB pro forma
adjustments(1) — 261.1 — 540.4 1,118.6 1,209.8
Pro forma sales $ 624.4 $ 487.9 $ 1,233.7 $ 2,043.3 $ 2,122.4 $ 2,256.3
Operating income:
Color, Additives and Inks $ 86.3 $ 32.3 $ 175.1 $ 180.8 $ 147.4 $ 158.5
Clariant MB pro forma
adjustments(1) — 22.0 — 45.0 72.9 80.3
Pro forma operating income $ 86.3 $ 54.3 $ 175.1 $ 225.8 $ 220.3 $ 238.8
Depreciation & amortization:
Color, Additives and Inks $ 25.3 $ 10.6 $ 52.6 $ 75.1 $ 42.7 $ 44.3
Clariant MB pro forma adjustments(1) — 15.0 — 30.1 60.3 61.2
Pro forma depreciation & amortization $ 25.3 $ 25.6 $ 52.6 $ 105.2 $ 103.0 $ 105.5
EBITDA
Color, Additives and Inks $ 111.6 $ 42.9 $ 227.7 $ 255.9 $ 190.1 $ 202.8
Clariant MB pro forma
adjustments(1) — 37.0 — 75.1 133.2 141.5
Pro forma EBITDA $ 111.6 $ 79.9 $ 227.7 $ 331.0 $ 323.3 $ 344.3
Pro forma EBITDA as a % of Sales 17.9 % 16.4 % 18.5 % 16.2 % 15.2 % 15.3 %
Three Months Ended
June 30, 2020
Reconciliation of Pro Forma Adjusted Earnings per
Share Avient
Special
Adjusted
Clariant MB
Pro Forma
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 (6.6) 2.9 — 2.9
Income taxes (7.9) 0.2 (7.7) (3.8) (11.5)
Net income attributable to noncontrolling interests (0.4) — (0.4) — (0.4)
Net income from continuing operations attributable to
Avient shareholders $ 23.0 $ 2.6 $ 25.6 $ 12.9 $ 38.5
Weighted average diluted shares 91.8
Pro forma adjusted EPS $ 0.42
3
December 31, 2020
Reconciliation of Pro Forma Adjusted
Earnings per Share Avient
Special
Adjusted
Clariant MB
Pro Forma
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
December 31, 2019
Reconciliation of Pro Forma Adjusted
Earnings per Share Avient
Special
Adjusted
Clariant MB
Pro Forma
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
4
AVNT Seaport Conference Presentation.pdf
AVNT Q2 2021 Earnings Presentation - Website.pdf
AVNT Q2 2021 Earnings Presentation - Website.pdf
Final - 7.19 1158am Q2 21 IR Deck Version v2
https://www.avient.com/sites/default/files/2024-03/AVNT February IR Presentation_w_Non-GAAP Recs_v2.pdf
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.
https://www.avient.com/sites/default/files/2024-02/AVNT Q4 2023 Earnings Presentation_For Website_with Non-GAAP.pdf
PY
$790
$719
$107
$114
Sales Adjusted EBITDA
$0.42
$0.52
Adjusted EPS
- 9% + 7% + 24%
Sales Adjusted EBITDA Adjusted EPS
13
Q4 2023 SEGMENT PERFORMANCE
14
CAI
$491
$459
Sales
$70
$84
SEM
$301
$260
Sales
$55
$49
- 7% - 14%+20% - 11%
Q4 EBITDA BRIDGE
15
$ 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
2 0 2 4 G U I DA N C E
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
17
Q1 Adjusted EPS of $0.68
A P P E N D I X
20
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
END MARKET REVENUE
$2,007M $358M
$1,138M $224M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$502M$3,143M
(1)
22
(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
23
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 BILLION
52%
35%
24
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)
25
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.