https://www.avient.com/sites/default/files/2021-05/avnt-first-quarter-2021-earnings-presentation.pdf
$86
$123
$0.53
$0.89
Q1 2021 – ORGANIC PERFORMANCE
3
Sales Adjusted Operating Income
$991
$1,162
+ 17%
+ 43% + 68%
(1) (1) (1)
Q1 2021 SEGMENT PERFORMANCE
4
CAI
$536
$609
($ in millions)
SEM Distribution
$64
$89
+14%
+39%
$290
$363
$19
$24
+25%
+26%
$185
$217
$22
$34
+17%
+55%
SPECIALTY EBITDA MARGIN EXPANSION
5
CAI
(1) 2018-2020 financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
15.3% 15.2%
16.2%
19.1%
2018 2019 2020 Q1 2021
14.8% 15.2%
17.6%
19.4%
2018 2019 2020 Q1 2021
SEM
• Continued portfolio transformation to
high-growth end markets and
sustainable solutions
• Clariant Masterbatch synergy realization
• Investments in composites and outdoor
high performance applications drive
growth and mix improvements
CAI EBITDA MARGIN EXPANSION
6
Legacy CAI
18.9% 18.9%
21.0%
2019 2020 Q1 2021
Legacy
11.9%
13.8%
17.4%
2019 2020 Q1 2021
• Early synergy capture translating to
the bottom line
• Positive mix with growth in healthcare,
consumer and packaging end-markets
• World-class vitality index of 36%
represents sales from products
introduced in the last five years.
This
innovation drives performance and is
reflective of consistent, strategic
investments in our portfolio…and
people.
2020 Pro forma $991 $86
Sustainable Solutions 15 11% 6
Healthcare 28 22% 6
Composites 6 10% 3
Growth in Emerging Regions 44 30% 10
Other 53 10% 7
Sub-total $1,137 15% $118
FX Impact 25 - 2
Synergies - - 11
Incentives, Travel, Other Employee Costs - - (8)
2021 Actual $1,162 17% $123
Q1 2021 ORGANIC SALES AND OPERATING INCOME
7 (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Sales Growth Rate
Operating
Income$ millions
8
Wire & Cable Transportation Industrial Healthcare Packaging Consumer
Q1 2020PF Q1 2021
(2) Financial information is presented on a constant currency basis
(1,2)
(42% of total revenue)
(58% of total revenue)
Q1 END MARKET SALES PERFORMANCE
+17%
+14% +8%
+10%
+8% +22%
+5%
+24%
Q 2 AN D FU LL Y EA R
2021 O U TLO O K
$69
$112
$0.42
$0.80
ORGANIC GROWTH PROJECTIONS – Q2
10
Sales Adjusted Operating Income
$870
$1,100
+ 26%
+ 62% + 90%
(1) (1) (1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
FULL YEAR GUIDANCE INCREASED
11
Sales Adj.
In 2021, we expect substantial earnings growth and strong cash flow generation as we emerge from the
COVID-19 pandemic.
https://www.avient.com/sites/default/files/2022-02/AVNT Q4 2021 Earnings Presentation_0.pdf
Unless otherwise stated, Adjusted Operating Income, Adjusted EBITDA and Adjusted EPS figures included in this presentation exclude the impact of special items as defined in our quarterly earnings releases.
2021 PE RF O RM AN CE
$80
$85
$0.52
$0.58
Q4 2021 PERFORMANCE
Sales Adjusted Operating Income
$997
$1,202
+ 21%
Adjusted EPS
+ 6% + 12%
(in millions) (in millions)
$308
$429
$1.93
$3.05
FULL YEAR 2021 PERFORMANCE
Sales Adjusted Operating Income
$3,783
$4,819
+ 27%
Adjusted EPS
+ 39% + 58%
(in millions) (in millions)
(1) (1) (1)
FULL YEAR 2021 SEGMENT PERFORMANCE
6
$2,043
$2,402
SEM Distribution
$226
$303
+ 18% + 34%
$1,110
$1,631
$70
$93
+ 47% + 33%
$709
$919
$94
$132
+ 30% + 40%
Full Year 2020 (Pro forma) $3,783 $308
Sustainable Solutions 147 19% 60
Healthcare 143 28% 30
Composites 58 43% 29
Growth in Asia / LATAM 107 21% 26
Other 543 30% 58
Sub-total $4,781 26% $511
Wage Inflation and Overtime (39)
Other Supply Chain Costs (15)
COVID Response Applications (22) (12)
Synergies 44
FX, Incentives, Other Employee Costs 60 (60)
Full Year 2021 $4,819 27% $429
FULL YEAR 2021 SALES AND OPERATING INCOME
Sales Growth Rate
Operating
Income$ millions
8
Full Year 2020 (Pro forma) $ 457
Demand 135
$ millions
CAI:
Price / Mix 158
Inflation (120)
SEM:
Price / Mix 84
Inflation (65)
Distribution:
Price / Mix 318
Inflation (304)
Net Price Benefit 71
Wage Inflation and Overtime (39)
Other Supply Chain Costs (15)
COVID Response Applications (12)
Synergies 44
Incentives, FX, Other Employee Costs (60)
Full Year 2021 $ 581
• Demand impact driven by growth
in key focus areas: sustainable
solutions, healthcare, composites
and growth in Asia / LATAM
• Price increases more than offset
raw material and supply chain
impacts
FULL YEAR 2021 EBITDA BRIDGE
SPECIALTY EBITDA MARGIN EXPANSION
9
(1) 2018-2020 financial information is pro forma to include a full year of Clariant Color business
15.3% 15.2%
16.2%
17.0%
2018 2019 2020 2021
14.8%
15.2%
17.6% 17.8%
2018 2019 2020 2021
SEM
• Record margins in 2021 despite
unprecedented supply chain challenges
• Continued portfolio transformation to
high-growth end markets and
sustainable solutions
• Clariant Color synergy realization
• Investments in composites and outdoor
high performance applications drove
growth and mix improvements
• Acquisition of Clariant Color business significantly expanded
presence in healthcare, packaging and consumer end markets
• Strength of portfolio – double-digit annual EBITDA growth
since acquisition
• $54 million of synergies realized in 2021
• Acquisition completed on July 1, 2020 for $1.45 billion.
Purchase price multiple rapidly declining on strength of
business and synergy capture
10
$133
$205
2019PF 2021
10
Clariant Color EBITDA Growth
Purchase Price Multiple
10.8x
7.0x
6.1x
2019PF 2021 2021 w/ Full
Synergies
11.9%
16.2%
2019PF 2021
EBITDA Margins
CLARIANT COLOR:
TRANSFORMATIONAL ACQUISITION
(1) Financial information is pro forma to include a full year of Clariant Color business
($ millions)
Initial
Synergy
Estimate
2021
Synergy
Realization
Total
Synergies
Expected
Administrative $ 18 $ 29 $ 40
Sourcing 24 20 24
Operational 18 5 21
Total Synergies $ 60 $ 54 $ 85
CLARIANT COLOR INTEGRATION &
COST SYNERGIES UPDATE
11
• Integration going extremely well: synergy target increased to $85 million at December 9th Investor Day
• 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
SUSTAINABILITY FOR A BETTER TOMORROW
• Revenue from sustainable solutions grew
16% in 2021 and expected to grow 8-12% in
2022 as our innovation efforts and
collaboration with customers accelerates
• 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
*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
2016 2017 2018 2019 2020PF** 2021
$405M
$455M
$550M
$790M
Revenue From Sustainable Solutions* 2016-2021
$915M
$340M
PEOPLE
C U L T U R E I S E V E R Y T H I N G
Community Service
7x Safer
than Industry Average
World-Class Safety
Leadership Development
Over $16 million
raised since 2010
Diversity & Inclusion
13
Q4 2020 $997 $80
Sustainable Solutions 23 12% 8
Healthcare 53 43% 9
Composites 7 22% 2
Growth in Asia / LATAM 14 10% 3
Other 118 23% 2
Sub-total $1,212 22% $104
Wage Inflation and Overtime (11)
Other Supply Chain Costs (4)
Synergies 9
Incentives, FX, Other Employee Costs (10) (13)
Q4 2021 $1,202 21% $85
Q4 2021 SALES AND OPERATING INCOME
14
Sales Growth Rate
Operating
Income$ millions
Q4 EBITDA BRIDGE
15
Price increases more than
offsets raw material and
supply chain impacts
Q4 2020 $ 118
Demand -
$ millions
CAI:
Price / Mix 62
Inflation (45)
SEM:
Price / Mix 25
Inflation (20)
Distribution:
Price / Mix 114
Inflation (109)
Net Price Benefit 27
Wage Inflation and Overtime (11)
Other Supply Chain Costs (4)
Synergies 9
Incentives, FX, Other Employee Costs (13)
Q4 2021 $ 126
Transportation (5)$
Outdoor High Performance (3)
Other 8
Total Demand -
Q4 2021 SEGMENT PERFORMANCE
16
$526
$581
SEM Distribution
$58
$61
+ 11% + 6%
$305
$425
$18
$22
+ 39% + 22%
$191
$228
$30
$29
+ 19% - 3%
2022 O U TLO O K
REVENUE GROWTH DRIVERS
Growth Drivers
Long-Term
Growth Rate
2022E
Growth Rate
Sustainable Solutions 8–12% 12%
Healthcare 8–10% 10%
Composites 10% 3%
Asia / LATAM 5% 6%
Other (GDP growth) 2–3% 2–3%
Avient 6.5% 6%
18
Excluding Outdoor High Performance 13%
(7.5% excl.
In 2021, we delivered substantial earnings growth and strong cash flow generation as we emerged from the
COVID-19 pandemic.
https://www.avient.com/sites/default/files/2021-02/2021-baird-sustainability-conference.pdf
Microsoft PowerPoint - 2021 Baird Sustainability Conference
AVIENT CORPORATION
(NYSE: AVNT)
B A I R D
S U S T A I N A B I L I T Y
C O N F E R E N C E
F E B R U A R Y 2 3 , 2 0 2 1
WALTER RIPPLE
V I C E P R E S I D E N T , S U S T A I N A B I L T Y
• 28 Years Industry Experience
• Bachelors of Chemistry, Texas A&M University
• Executive MBA, University of Michigan
• Former VP & General Manager, Global GLS
TPE Business
• 2+ years Vice President, Sustainability
Avient Corporation 2
SUSTAINABILITY
A T A V I E N T
P E O P LE P RO D U CT S P LA N E T P E R F O RM AN CE
O U R M I S S I O N
E N A B L E O U R C U S T O M E R S ’ I N N O V A T I O N A N D S U S T A I N A B I L I T Y G O A L S
T H R O U G H W O R L D C L A S S P R O D U C T S A N D S E R V I C E S A N D E X C E L L E N C E I N
T H E F O U R C O R N E R S T O N E S O F :
Avient Corporation 3
Enable 100% of products manufactured for
packaging applications to be recyclable or
reusable.
https://www.avient.com/sites/default/files/2021-04/avient-q4-earnings-and-2021-outlook-website.pdf
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.
In 2021 we expect substantial earnings growth and strong cash flow generation as we emerge from the
COVID-19 pandemic.
Free Cash Flow Calculation
Year Ended
Cash provided (used) by operating activities $ 221.6
Capital expenditures (63.7)
Free Cash Flow 157.9
Payment of post-acquisition date earnout liability 38.1
Taxes paid on gain on divestiture 142.0
Adjusted Free Cash Flow $ 338.0
Free Cash Flow Calculation Total
Discontinued
Operations
Continuing
Operations
Cash provided by operating activities $ 300.8 $ 74.4 $ 226.4
Capital expenditures 81.7 14.1 67.6
Free Cash Flow $ 219.1 $ 60.3 $ 158.8
Avient Q4 Earnings and 2021 Outlook.pdf
Avient February IR Presentation.pdf
Avient IR Presentation - Goldman Sachs and Morgan Stanley - Website.pdf
Avient Q4 Earnings and 2021 Outlook.pdf
Avient Q4 Earnings and 2021 Outlook.pdf
Avient Q4 Earnings and 2021 Outlook.pdf
Avient Q4 Earnings and 2021 Outlook.pdf
Avient Q4 Earnings and 2021 Outlook.pdf
2.5.21 IR Deck Attachments clean
https://www.avient.com/sites/default/files/2021-06/avient-ir-presentation-june-2021-w-non-gaap-recs_0.pdf
These investments also
consider our global footprint, and we are positioned very well and
strategically from a regional perspective.
12
Growth Drivers
2020
Revenue
($ Millions)
Long-Term
Growth Rate
Sustainable Solutions $ 560 8–12%
Healthcare 555 8–10%
Composites / 5G 212 10%
Growth in Emerging Regions 672 5%
Other (GDP growth) 1,784 2–3%
Pro Forma Avient $ 3,783 6.5%
Q 1 2021 P E RFO R MA N CE
U P DAT E
$86
$123
$0.53
$0.89
Q1 2021 – ORGANIC PERFORMANCE
14
Sales Adjusted Operating Income
$991
$1,162
+ 17%
+ 43% + 68%
(1) (1) (1)
Q1 2021 SEGMENT PERFORMANCE
15
CAI
$536
$609
($ in millions)
SEM Distribution
$64
$89
+14%
+39%
$290
$363
$19
$24
+25%
+26%
$185
$217
$22
$34
+17%
+55%
SPECIALTY EBITDA MARGIN EXPANSION
16
CAI
(1) 2018-2020 financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
15.3% 15.2%
16.2%
19.1%
2018 2019 2020 Q1 2021
14.8% 15.2%
17.6%
19.4%
2018 2019 2020 Q1 2021
SEM
• Continued portfolio transformation to
high-growth end markets and
sustainable solutions
• Clariant Masterbatch synergy realization
• Investments in composites and outdoor
high performance applications drive
growth and mix improvements
CAI EBITDA MARGIN EXPANSION
17
Legacy CAI
18.9% 18.9%
21.0%
2019 2020 Q1 2021
Legacy
11.9%
13.8%
17.4%
2019 2020 Q1 2021
• Early synergy capture translating to
the bottom line
• Positive mix with growth in healthcare,
consumer and packaging end-markets
• World-class vitality index of 36%
represents sales from products
introduced in the last five years.
This
innovation drives performance and is
reflective of consistent, strategic
investments in our portfolio…and
people.
2020 Pro forma $991 $86
Sustainable Solutions 15 11% 6
Healthcare 28 22% 6
Composites 6 10% 3
Growth in Emerging Regions 44 30% 10
Other 53 10% 7
Sub-total $1,137 15% $118
FX Impact 25 - 2
Synergies - - 11
Incentives, Travel, Other Employee Costs - - (8)
2021 Actual $1,162 17% $123
Q1 2021 ORGANIC SALES AND OPERATING INCOME
18 (1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Sales Growth Rate
Operating
Income$ millions
19
Wire & Cable Transportation Industrial Healthcare Packaging Consumer
Q1 2020PF Q1 2021
(2) Financial information is presented on a constant currency basis
(1,2)
(42% of total revenue)
(58% of total revenue)
Q1 END MARKET SALES PERFORMANCE
+17%
+14% +8%
+10%
+8% +22%
+5%
+24%
Q 2 AN D FU LL Y EA R
2021 O U TLO O K
A S O F A P R I L 3 0 , 2 0 2 1 W E B C A S T
$69
$112
$0.42
$0.80
ORGANIC GROWTH PROJECTIONS – Q2
21
Sales Adjusted Operating Income
$870
$1,100
+ 26%
+ 62% + 90%
(1) (1) (1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
FULL YEAR GUIDANCE INCREASED
22
Sales Adj.
In 2021, we expect substantial earnings growth and strong cash flow generation as we emerge from the
COVID-19 pandemic.
https://www.avient.com/sites/default/files/2021-05/certificate-section-28.pdf
CTC 17 May 2021.pdf
https://www.avient.com/sites/default/files/2024-10/Avient_CodeConduct_2024_final2.pdf
In certain situations, however, you may wish to remain
anonymous.
At Avient, we wish to build such relationships
because they are in the long-term interest of Avient and
the customers and vendors with whom we do business.
OUR CODE OF
INTEGRITY IN OUR
CORPORATE SOCIAL
CODE OF CONDUCT | 29
https://www.avient.com/company/policies-and-governance-0/avients-human-rights-policy
Internal Contacts—Ethics and Compliance Resources
For more information on the Code or our expectations, contact the following resources directly:
• Your supervisor or any Avient manager
• Your human resources representative or the Human Resources department
• The Corporate Ethics Officer
• Any member of the Legal department
• The function with the appropriate expertise (e.g., Corporate Finance, Internal Audit, Sourcing)
Call or use the Ethics Hotline if:
• You need advice or have a question
• You wish to raise an issue or concern
• You raised an issue or concern and were not satisfied
• You are not sure where to go for information
• You are uncomfortable using one of the other resources listed in the Code
The Ethics Hotline is available globally in over 20 languages, 24 hours a day, 7 days a week.
https://www.avient.com/sites/default/files/2023-07/Avient_CodeConduct_2023_USA.pdf
In certain situations, however, you may wish to
remain anonymous.
At Avient, we wish to build such relationships because they are in the long-term interest of Avient and the
customers and vendors with whom we do business.
Internal Contacts—Ethics and Compliance Resources
For more information on the Code or our expectations, contact the following resources directly:
• Your supervisor or any Avient manager
• Your human resources representative or the Human Resources department
• The Corporate Ethics Officer
• Any member of the Legal department
• The function with the appropriate expertise (e.g., Corporate Finance, Internal Audit, Sourcing)
Ethics Hotline
Call or use the Ethics Hotline if:
• You need advice or have a question
• You wish to raise an issue or concern
• You raised an issue or concern and were not satisfied
• You are not sure where to go for information
• You are uncomfortable using one of the other resources listed in the Code
The Ethics Hotline is available globally in over 20 languages, 24 hours a day, 7 days a week.
https://www.avient.com/sites/default/files/2021-05/form-9-13.pdf
CTC 17 May 2021.pdf
https://www.avient.com/sites/default/files/2021-05/form-24.pdf
CTC 17 May 2021.pdf