https://www.avient.com/sites/default/files/resources/POL%2520BofA%2520Basic%2520Materials%2520IR%2520Presentation%2520w%2520non-GAAP%252012%252011%25202013.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
The final amount of charges resulting from the planned North American asset realignment and the Company’s ability to realize anticipated savings and
operational benefits from the asset realignment;
Our ability to achieve the strategic and other objectives relating to the acquisition of Spartech Corporation, including any expected synergies;
Our ability to successfully integrate Spartech and achieve the expected results of the acquisition, including, without limitation, the acquisition being
accretive;
Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and
cost of credit in the future;
The financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate
liquidity) to maintain their credit availability;
The speed and extent of an economic recovery, including the recovery of the housing market;
Our ability to achieve new business gains;
The effect on foreign operations of currency fluctuations, tariffs, and other political, economic and regulatory risks;
Changes in polymer consumption growth rates in the markets where we conduct business;
Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online;
Fluctuations in raw material prices, quality and supply and in energy prices and supply;
Production outages or material costs associated with scheduled or unscheduled maintenance programs;
Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters;
An inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital
reductions, cost reductions, employee productivity goals, and an inability to raise or sustain prices for products or services;
An inability to raise or sustain prices for products or services;
An inability to maintain appropriate relations with unions and employees;
The inability to achieve expected results from our acquisition activities;
Our ability to continue to pay cash dividends;
The amount and timing of repurchases of our common shares, if any; and
Other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and
changes in the rate of inflation.
• The above list of factors is not exhaustive.
• We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
https://www.avient.com/sites/default/files/2024-12/Terms and Conditions of Sale for Hong Kong %28English%29.pdf
If (i) Buyer is in default of
performance of its obligations towards Seller and fails to provide
adequate assurance of Buyer’s performance before the date of
scheduled delivery; or (ii) if Seller has reasonable doubts with
respect to Buyer’s performance of its obligations and Buyer fails to
provide to Seller adequate assurance of Buyer’s performance before
the date of scheduled delivery and in any case within thirty (30) days
of Seller’s demand for such assurance; or (iii) if Buyer becomes
insolvent or unable to pay its debts as they mature, or goes into
liquidation or any bankruptcy proceeding shall be instituted by or
against Buyer or if a trustee or receiver or administrator is appointed
for all or a substantial part of the assets of Buyer or if Buyer makes
any assignment for the benefit of its creditors; or (iv) in case of non-
compliance of Buyer with any law, statute ordinance, regulation,
code or standard (“Laws and Standards”), then Seller may by notice
in writing to Buyer, without prejudice to any of its other rights: (a)
demand return and take repossession of any delivered Products
which have not been paid for and all costs relating to the recovery of
the Products shall be for the account of Buyer; and/or (b) suspend its
performance or terminate its order confirmation for pending delivery
of Products unless Buyer makes such payment for Products on a cash
in advance basis or provides adequate assurance of such payment for
Products to Seller.
Department of the Treasury’s
Office of Foreign Assets Control, and other trade export control
requirements prescribed by the Hong Kong Trade and Industry
Department (“Trade Control Laws”).
https://www.avient.com/sites/default/files/2024-12/Terms and Conditions of Sale for Singapore %28English%29.pdf
If (i) Buyer is in default of
performance of its obligations towards Seller and fails to provide
adequate assurance of Buyer’s performance before the date of
scheduled delivery; or (ii) if Seller has reasonable doubts with
respect to Buyer’s performance of its obligations and Buyer fails
to provide to Seller adequate assurance of Buyer’s performance
before the date of scheduled delivery and in any case within
thirty (30) days of Seller’s demand for such assurance; or (iii) if
Buyer becomes insolvent or unable to pay its debts as they
mature, or goes into liquidation or any bankruptcy proceeding
shall be instituted by or against Buyer or if a trustee or receiver
or administrator is appointed for all or a substantial part of the
assets of Buyer or if Buyer makes any assignment for the benefit
of its creditors; or (iv) in case of non-compliance of Buyer with
any law, statute ordinance, regulation, code or standard (“Laws
and Standards”), then Seller may by notice in writing to Buyer,
without prejudice to any of its other rights: (a) demand return
and take repossession of any delivered Products which have not
been paid for and all costs relating to the recovery of the Products
shall be for the account of Buyer; and/or (b) suspend its
performance or terminate its order confirmation for pending
delivery of Products unless Buyer makes such payment for
Products on a cash in advance basis or provides adequate
assurance of such payment for Products to Seller.
Department of the Treasury’s Office of
Foreign Assets Control (“Trade Control Laws”).
https://www.avient.com/sites/default/files/2024-12/Terms and Conditions of Sale for Thailand %28English%29.pdf
If (i) Buyer is in default of
performance of its obligations towards Seller and fails to provide
adequate assurance of Buyer’s performance before the date of
scheduled delivery; or (ii) if Seller has reasonable doubts with
respect to Buyer’s performance of its obligations and Buyer fails to
provide to Seller adequate assurance of Buyer’s performance before
the date of scheduled delivery and in any case within thirty (30) days
of Seller’s demand for such assurance; or (iii) if Buyer becomes
insolvent or unable to pay its debts as they mature, or goes into
liquidation or any bankruptcy proceeding shall be instituted by or
against Buyer or if a trustee or receiver or administrator is appointed
for all or a substantial part of the assets of Buyer or if Buyer makes
any assignment for the benefit of its creditors; or (iv) in case of non-
compliance of Buyer with any law, statute ordinance, regulation,
code or standard (“Laws and Standards”), then Seller may by
notice in writing to Buyer, without prejudice to any of its other
rights: (a) demand return and take repossession of any delivered
Products which have not been paid for and all costs relating to the
recovery of the Products shall be for the account of Buyer; and/or
(b) suspend its performance or terminate its order confirmation for
pending delivery of Products unless Buyer makes such payment for
Products on a cash in advance basis or provides adequate assurance
of such payment for Products to Seller.
Department of the Treasury’s Office
of Foreign Assets Control (“Trade Control Laws”).
https://www.avient.com/sites/default/files/2024-12/Terms and Conditions of Sale for Czech Republic.pdf
i) If Buyer is in default of
performance of its obligations towards Seller and fails to provide
adequate assurance of Buyer’s performance before the date of
scheduled delivery; or (ii) if Seller has reasonable doubts with
respect to Buyer’s performance of its obligations and Buyer fails to
provide to Seller adequate assurance of Buyer’s performance before
the date of scheduled delivery and in any case within thirty (30) days
of Seller’s demand for such assurance; or (iii) if Buyer becomes
insolvent or unable to pay its debts as they mature, or goes into
liquidation or any bankruptcy proceeding shall be instituted by or
against Buyer or if a trustee or receiver or administrator is appointed
for all or a substantial part of the assets of Buyer or if Buyer makes
any assignment for the benefit of its creditors; or (iv) in case of non-
compliance of Buyer with any law, statute ordinance, regulation,
code or standard (“Laws and Standards”), then Seller may by notice
in writing to Buyer, without prejudice to any of its other rights: (a)
demand return and take repossession of any delivered Products
which have not been paid for and all costs relating to the recovery of
the Products shall be for the account of Buyer; and/or (b) suspend its
performance or terminate its order confirmation for pending delivery
of Products unless Buyer makes such payment for Products on a cash
in advance basis or provides adequate assurance of such payment for
Products to Seller.
Department of the Treasury’s Office of
Foreign Assets Control, the Act no. 38/1994 Coll., on international
trade with military material, Act 594/2004 Coll., on execution of EC
regime for control of export, transport, intermediation and transit of
dual use goods, Act 69/2006 Coll., on execution of international
sanctions, Act 1/2023 Coll., on sanctions as well as all directly
applicable EU legislation (“Trade Control Laws”).
https://www.avient.com/sites/default/files/2024-12/Terms and Conditions of Sale for India %28English%29.pdf
If (i) Buyer is in default of
performance of its obligations towards Seller and fails to provide
adequate assurance of Buyer’s performance before the date of
scheduled delivery; or (ii) Seller has reasonable doubts with respect
to Buyer’s performance of its obligations and Buyer fails to provide
to Seller adequate assurance of Buyer’s performance before the date
of scheduled delivery and in any case within thirty (30) days of
Seller’s demand for such assurance; or (iii) Buyer becomes insolvent
or unable to pay its debts as they mature, or goes into liquidation or
should any insolvency or bankruptcy proceeding be instituted by or
against Buyer or should a trustee, receiver, resolution professional,
administrator or similar officer be appointed for all or a substantial
part of the assets of Buyer, or should Buyer make any assignment
for the benefit of its creditors; or (iv) in case of non-compliance of
Buyer with any law, statute ordinance, regulation, code or standard
(“Laws and Standards”), then Seller may by notice in writing to
Buyer, without prejudice to any of its other rights: (a) demand return
and take repossession of any delivered Products which have not been
paid for and all costs relating to the recovery of the Products shall be
to the account of Buyer; and/or (b) suspend its performance or
terminate its order confirmation for pending delivery of Products
unless Buyer makes such payment for Products on a cash in advance
basis or provides adequate assurance of such payment for Products
to Seller.
Department of the Treasury’s Office of Foreign Assets
Control (“Trade Control Laws”).
https://www.avient.com/sites/default/files/2023-06/Terms and Conditions of Sale for the Netherlands.pdf
i) If Buyer is in default of performance
of its obligations towards Seller and fails to provide adequate
assurance of Buyer’s performance before the date of scheduled
delivery; or (ii) if Seller has reasonable doubts with respect to
Buyer’s performance of its obligations and Buyer fails to provide to
Seller adequate assurance of Buyer’s performance before the date of
scheduled delivery and in any case within thirty (30) days of Seller’s
demand for such assurance; or (iii) if Buyer becomes insolvent or
unable to pay its debts as they mature, or goes into liquidation or any
bankruptcy proceeding shall be instituted by or against Buyer or if a
trustee or receiver or administrator is appointed for all or a
substantial part of the assets of Buyer or if Buyer makes any
assignment for the benefit of its creditors; or (iv) in case of non-
compliance of Buyer with any law, statute ordinance, regulation,
code or standard (“Laws and Standards”), then Seller may by notice
in writing to Buyer, without prejudice to any of its other rights: (a)
demand return and take repossession of any delivered Products
which have not been paid for and all costs relating to the recovery of
the Products shall be for the account of Buyer; and/or (b) suspend its
performance or rescinds, partly or completely its order confirmation
for pending delivery of Products in accordance with Section 6:265
DCC unless Buyer makes such payment for Products on a cash in
advance basis or provides adequate assurance of such payment for
Products to Seller.
Department of the Treasury’s Office of Foreign Assets
Control (“Trade Control Laws”).
https://www.avient.com/sites/default/files/2021-02/avient-ir-presentation-goldman-sachs-and-morgan-stanley.pdf
16
2021 O U TLO O K
Synergies
($ millions)
Initial
Three-Year
Estimate
Revised
Three-Year
Estimate
2021
Expected
Realization
Administrative $ 18 $ 20 $ 15
Sourcing 24 30 15
Operational 18 25 5
Total Synergies $ 60 $ 75 $ 35
CLARIANT INTEGRATION &
COST SYNERGIES UPDATE
18
• Integration going extremely well: synergy target increased from $60 million to $75 million
• $5 million of synergies in 2020 and expect to realize $35 million in 2021
• Relentless focus on guiding principles of safety first, employee collaboration and exceeding
customer expectations
• Future revenue synergies are not part of these estimates and represent additional growth over
the long term
$86
$103
$0.53
$0.70
ORGANIC GROWTH PROJECTIONS – Q1
19
Sales Adjusted Operating Income
$991
$1,090
+ 10%
Adjusted EPS
+ 20% + 32%
(in millions) (in millions)
(1) (1) (1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
$308
$360
$1.93
$2.40
ORGANIC GROWTH PROJECTIONS – FULL YEAR
20
Sales Adjusted Operating Income
$3,783
$4,100
+ 8%
Adjusted EPS
+ 17% + 24%
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(in millions) (in millions)
2020 Pro forma $3,783 $308
Sustainable Solutions 60 11% 24
Healthcare 60 11% 18
Composites 20 10% 10
Growth in Emerging Regions 50 7% 11
Other (GDP growth) 82 5% 11
Sub-total $4,055 7% $382
COVID Response Applications (25) - (11)
Outdoor High Performance Applications (15) - (7)
Asia Payroll Tax Subsidy (COVID) - - (4)
FX Impact 85 - 7
Synergies - - 30
Incentives, Travel, Other Employee Costs - - (37)
2021 Estimated $4,100 8% $360
2021 ORGANIC SALES AND OPERATING INCOME
21 (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(2) COVID Response Applications: facemasks, personal protective equipment
Sales Growth Rate
Operating
Income$ millions
(2)
CASH FLOW AND LEVERAGE
22
• Asset light business generates
significant free cash flow
• Cash generation in 2021 partially offset
by restructuring activities to capture
synergies associated with the Clariant
Masterbatch acquisition
• Cash flow deployed to M&A,
opportunistic share repurchases and
balance sheet / leverage reduction
3.5x
2.7x
2.1x
2019PF 2020PF 2021E
Net Debt / Adjusted EBITDA
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
($ millions) 2020 2021E
Adjusted EBITDA 382 510
Working Capital: Source / (Use) 116 (30)
Cash Taxes (40) (53)
Interest Paid (67) (76)
CapEx (62) (75)
CapEx for Synergy Capture (2) (20)
Restructuring for Synergy Capture (11) (25)
Other 22 19
Free Cash Flow 338 250
23
• 8% increase in sales drives 24% increase in adjusted EPS to $2.40
($2.70 excluding step-up depreciation and amortization) as a result of
continued growth in sustainable solutions and synergy capture
• Clariant synergy capture ahead of schedule: $35M of savings planned from
Clariant Masterbatch acquisition
• Adjusted EBITDA of $510M – highest level in company history
• Deleveraging ahead of schedule – 2.1x net debt to adjusted EBITDA by the
end of 2021
2021 PROJECTIONS
PEER COMPARISONS
24
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
Whether
an additional line at an existing
manufacturing plant, or a new
facility in a growing region, we
ramp-up quickly and cost-efficiently.
25
Capex / Revenue
2021E (%)
AVIENT IS ASSET LIGHT
Avient Specialty
Other
2 3 2 2 2 3 3
3 4 4 5 5 5 6 6 6 7
25
t
(E
xc
l.
D
is
t.
)
LB
Median: 5%Median: 3%
Avient reflects 2021 estimated revenue of $4,100M and excludes one-time synergy capture CAPEX ($20M)
Avient Specialty
Other
Free Cash Flow Conversion (1)
2021E (%)
Being asset light helps us to generate
strong free cash flow that is in line
with specialty formulators.
https://www.avient.com/sites/default/files/2021-06/avient-ir-presentation-may-2021-w-non-gaap-recs.pdf
Operating Income
$3,783
$4,100
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Previous
Guidance
Current
Guidance
$3,783
$4,300
$308
$360
$308
$410
$1.93
$2.40
$1.93
$2.80
(1) (1)(1)
(1)(1) (1)
$442
$457
$560
$1.74
$1.93
$2.80
FULL YEAR 2019 – 2021 ORGANIC GROWTH
23
Sales Adjusted EBITDA
$3,981
$3,783
$4,300
+ 8%
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(1)(1)
+ 27% + 61%
24
BALANCE SHEET
• Deleveraging to 1.9x net debt to
adjusted EBITDA by the end of
2021
• Driven by record adjusted EBITDA
performance and strong free cash
flow generation from asset light
business
• Future cash deployment: M&A,
opportunistic share repurchases
and balance sheet / continued
leverage reduction
3.5x
2.7x
1.9x
Net Debt / Adjusted EBITDA
($ in millions)
2021E Adjusted EBITDA 560$
Free Cash Flow 275$
Total Debt 1,860
Less: Cash (800)
Net Debt 1,060$
2021E Net Debt / Adjusted EBITDA 1.9x
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
PEER COMPARISONS
25
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
Whether
an additional line at an existing
manufacturing plant, or a new
facility in a growing region, we
ramp-up quickly and cost-efficiently.
26
Capex / Revenue
2021E (%)
AVIENT IS ASSET LIGHT
Avient Specialty
Other
2 3 2 2 2 3 3 4 3 3 3 4 4 5 5 5 6
7 7 8
24
t
(E
xc
l.
D
is
t.
)
LB
Median: 5%Median: 3%
Avient reflects 2021 estimated revenue of $4,300M and excludes one-time synergy capture CAPEX ($20M)
Avient Specialty
Other
Free Cash Flow Conversion (1)
2021E (%)
Being asset light helps us to generate
strong free cash flow that is in line
with specialty formulators.
https://www.avient.com/sites/default/files/resources/Innovation_Day_-_May_2014_0.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
The final amount of charges resulting from the planned North American asset realignment and the Company’s ability to realize anticipated
savings and operational benefits from the asset realignment;
Our ability to achieve the strategic and other objectives relating to the acquisition of Spartech Corporation, including any expected synergies;
Our ability to successfully integrate Spartech and achieve the expected results of the acquisition, including, without limitation, the acquisition
being accretive;
Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability
and cost of credit in the future;
The financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with
inadequate liquidity) to maintain their credit availability;
The speed and extent of an economic recovery, including the recovery of the housing market;
Our ability to achieve new business gains;
The effect on foreign operations of currency fluctuations, tariffs, and other political, economic and regulatory risks;
Changes in polymer consumption growth rates in the markets where we conduct business;
Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online;
Fluctuations in raw material prices, quality and supply and in energy prices and supply;
Production outages or material costs associated with scheduled or unscheduled maintenance programs;
Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters;
An inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working
capital reductions, cost reductions, employee productivity goals, and an inability to raise or sustain prices for products or services;
An inability to raise or sustain prices for products or services;
An inability to maintain appropriate relations with unions and employees;
The inability to achieve expected results from our acquisition activities;
Our ability to continue to pay cash dividends;
The amount and timing of repurchases of our common shares, if any; and
Other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates
and changes in the rate of inflation