https://www.avient.com/sites/default/files/2021-06/vinod-purayath-bio.pdf
Vinod Purayath is Senior Vice President and Chief Technology Officer of Avient
Corporation, a premier provider of specialized and sustainable material solutions and
services.
At SanDisk Corporation, he held technical and
engineering leadership positions over an eight-year period, building and leading a global
team of engineers, whose success underpinned the growth of the company.
Avient Corporation • 33587 Walker Road • Avon Lake, Ohio 44012 • 440.930.1000 • www.avient.com
https://www.avient.com/
https://www.avient.com/sites/default/files/2024-08/Avient Q2 2024 Earnings Call Presentation.pdf
IR Deck - AVNT-2024.06.30 (Earnings)
AVIENT CORPORATION
S E C O N D Q U A R T E R 2 0 2 4 R E S U L T S A N D
2 0 2 4 F I N A N C I A L G U I D A N C E
(NYSE: AVNT)
AU G U S T 6 , 2 0 2 4
DISCLAIMER
Forward-Looking Statements
Certain statements contained in or incorporated by reference into this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
FX +4.6%
FX -1.5%
Total Avient +3.1%
Note: Regional Sales Percentages exclude impact of foreign exchange
Q2 2024 SEGMENT PERFORMANCE
(COLOR, ADDITIVES & INKS)
$525
$542
$94
$108
19.9%
(in millions) (in millions)
7
17.9%
+200 bps
* Adjusted EBITDA Margin %
• Organic sales growth in all
regions led by Americas
• Raw material deflation combined
with cost reduction actions drove
EBITDA margin expansion
+ 3%
(+5% excluding FX)
+ 15%
(+17% excluding FX)
Q2 2024 SEGMENT PERFORMANCE
(SPECIALTY ENGINEERED MATERIALS)
$301
$308
$60
$64
20.6%
(in millions) (in millions)
8
19.8%
+80 bps
* Adjusted EBITDA Margin %
• Sales growth in consumer,
healthcare and building &
construction end markets offset
by weaker demand in
telecommunications
• EBITDA margin expansion
driven by positive end market
mix as well as raw material
deflation
+ 2%
(+4% excluding FX)
+ 7%
(+8% excluding FX)
2024 G U IDA N CE
FY 2024 GUIDANCE
Previous (May 7) Current
Adjusted EBITDA $510 to $535 million $515 to $540 million
Adjusted EPS $2.50 to $2.65 $2.55 to $2.70
Interest Expense $105 million $105 million
Adjusted Effective Tax Rate 23% to 25% 23% to 25%
Capital Expenditures ~$140 million ~$140 million
10
Q3 2024: Adjusted EPS of $0.62
11
Highlights
• Provides performance updates on 2030
Sustainability Goals
• Reduced company’s Scope 1 & 2 GHG emissions
by 48% since 2019
• Highlights ESG performance ratings, certifications,
and awards, including recent upgrades by
Ecovadis to Gold and CDP to A-
• Reflects Great Place to Work® culture focused on
health, safety and employee engagement
2023 SUSTAINABILITY REPORT
11
Sustainability for a
Better Tomorrow
2023
SUSTAINABILITY REPORT
12
• Investor Day to be held December 4, 2024 in
New York, NY
• The focus will be to do a deep dive on the
Company’s strategy
• Further details to be communicated
2024 AVIENT INVESTOR DAY
AP P EN D IX
15
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
7%
END MARKET REVENUE
$2,007M $358M
$1,138M $224M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$502M$3,143M
(1)
7%
17
(1) Total company sales and adjusted EBITDA of $3,143M and $502M, respectively, include intercompany sales eliminations and corporate costs
2023 REVENUE | $2 .0 B ILL ION
34%
37%
21%
END MARKET REGION
18
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 B ILL ION
52%
35%
19
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)
20
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.
A reconciliation of these measures to their most directly comparable GAAP measures is provided in the tables below.
2024 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income from continuing operations attributable to Avient shareholders $ 33.6 $ 0.36 $ 22.1 $ 0.24
Special items, after-tax 21.8 0.24 19.6 0.21
Amortization expense, after-tax 14.8 0.16 16.2 0.18
Adjusted net income / EPS $ 70.2 $ 0.76 $ 57.9 $ 0.63
Three Months Ended
Reconciliation to EBITDA and Adjusted EBITDA: 2024 2023
Net income from continuing operations – GAAP $ 33.8 $ 22.3
Income tax expense 11.2 10.4
Interest expense, net 26.6 29.4
Depreciation & amortization 44.9 47.6
EBITDA from continuing operations $ 116.5 $ 109.7
Special items, before tax 28.1 21.7
Interest expense included in special items (1.0) —
Depreciation & amortization included in special items (0.3) (0.1)
Adjusted EBITDA $ 143.3 $ 131.3
Adjusted EBITDA as a percent of sales 16.9 % 15.9 %
1
2024 2023
Sales:
Color, Additives and Inks $ 542.0 $ 524.5
Specialty Engineered Materials 308.1 300.8
Corporate (0.4) (0.9)
Sales $ 849.7 $ 824.4
Operating income:
Color, Additives and Inks $ 86.1 $ 68.0
Specialty Engineered Materials 42.8 39.7
Corporate (56.4) (45.4)
Operating income $ 72.5 $ 62.3
Depreciation & amortization:
Color, Additives and Inks $ 21.8 $ 25.7
Specialty Engineered Materials 20.8 19.9
Corporate 2.3 2.0
Depreciation & amortization $ 44.9 $ 47.6
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 107.9 $ 93.7
Specialty Engineered Materials 63.6 59.6
Corporate (54.1) (43.4)
Other expense, net (0.9) (0.2)
EBITDA from continuing operations 116.5 109.7
Special items, before tax 28.1 21.7
Interest expense included in special items (1.0) —
Depreciation & amortization included in special items (0.3) (0.1)
Adjusted EBITDA $ 143.3 $ 131.3
Adjusted EBITDA as a percent of sales:
Color, Additives and Inks 19.9 % 17.9 %
Specialty Engineered Materials 20.6 % 19.8 %
2
Year Ended
December 31, 2023
Operating income:
Color, Additives and Inks $ 259.9
Specialty Engineered Materials 142.5
Corporate (205.6)
Operating income $ 196.8
Depreciation & amortization:
Color, Additives and Inks $ 98.3
Specialty Engineered Materials 81.5
Corporate 9.0
Depreciation & amortization $ 188.8
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 358.2
Specialty Engineered Materials 224.0
Corporate (196.6)
Other income, net 5.8
EBITDA from continuing operations 391.4
Special items, before tax 114.6
Interest expense included in special items (2.3)
Depreciation & amortization included in special items (1.9)
Adjusted EBITDA $ 501.8
3
Avient Q2 2024 Webcast Slides_for website_with non-GAAP_8_5.pdf
IR Deck - AVNT-2024.06.30 - 8.02.24 1130AM.pdf
Attachment
Avient Q2 2024 Webcast Slides_for website_with non-GAAP.pdf
AVNT cover slide.pdf
https://www.avient.com/sites/default/files/2023-03/AVNT Mar 2023 Earnings Presentation.pdf
Microsoft PowerPoint - AVNT Mar 2023 Earnings Presentation
AVIENT CORPORATION
I N V E S T O R P R E S E N T A T I O N
(NYSE: AVNT)
M A R C H 2 0 2 3
DISCLAIMER
Forward-Looking Statements
Certain statements contained in or incorporated by reference into this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
Additionally, Adjusted EPS excludes the impact of special items and amortization expense
associated with intangible assets.2
AVIENT: WHO WE ARE
36
24
9
35
• U.S. and Canada
• Latin America
• Europe, Middle East & Africa
• Asia
25,000+
CUSTOMERS
Headquartered in Avon Lake, OH
(Cleveland)
100+ manufacturing plants
Key Financial Data
2023E Sales $3.45 billion
2023E EBITDA $530 million
2023E EPS $2.40
100%
ARE CUSTOMIZED SOLUTIONS
TO UNIQUE SPECIFICATIONS
of
sales
Guidance as of February 15, 2023 Webcast
WHO WE ARE – VISION, STRATEGY, CULTURE
Avient Corporation (NYSE: AVNT) provides
specialized and sustainable material solutions that
transform customer challenges into opportunities,
bringing new products to life for a better world.
Avient 2011 and 2018 valuations reflect trailing 12 months EBITDA at December 31 of the respective years.
32
EV / 2023E EBITDA
Historic Multiple
6.5
8.3
10.0
15.6
13.9 13.7
12.8
9.5
18.0 17.5
12.3
10.2 9.7
8.8 8.4
5.9
(2
01
1)
(2
01
8)
RA W M AT ER IA L
OVE RV IE W
34
RAW MATERIAL 2022 ANNUAL PURCHASES
Performance
Additives
16%
Pigments
TiO2
Dyestuffs
2%
Polyethylene
Nylon
Polypropylene
Styrenic Block
Copolymer
Other Raw
Materials
30%
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
Excludes Avient Protective Materials
SEGMENT DATA
U.S. & Canada
40%
37%
18%
Latin America
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
Building and
END MARKET REVENUE
(1) Total company adjusted EBITDA of $592M includes corporate costs
$2,355M $402M
$1,300M $272M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$592M$3,653M
36
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
US & Canada
34%
38%
Latin America
END MARKET REGION
37
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
US & Canada
52%
35%
REGION
38
19%
8%Industrial
16%
Building &
32%
27%
14%
Building &
3%
1% Defense
1%
(18% of sales)
2022 PROFORMA AVIENT REGIONAL SALES
BY END MARKET
27%
14%
17%
Building &
(37% of sales)Transportation
Building &
US &
Canada
(40% of sales)
7%
56%
23%
7%
Building &
1%
LATAM
(5% of sales)
3%
39
https://www.avient.com/sites/default/files/2022-11/Seat Buckle System Application Snapshot.pdf
AVIENT SOLUTION
EFFICIENCY + SAVINGS
Copyright © 2020, Avient Corporation
LEARN MORE
https://www.avient.com/sites/default/files/2020-10/coffee-capsules-case-study.pdf
AVIENT SOLUTION
SUSTAINABILITY
LEARN MORE
Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2023-04/OnFlex TPE - Snow Flap - Application Snapshot.pdf
AVIENT SOLUTION
SERVICE + PROCESSABILITY
LEARN MORE
Copyright © 2023, Avient Corporation.
https://www.avient.com/sites/default/files/2020-12/case-study-versaflex-ce-antimicrobial-phone-case-1.pdf
AVIENT SOLUTION
ANTIMICROBIAL
LEARN MORE
Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2021-02/avients-publication-of-uk-tax-strategy.pdf
AVIENT CORPORATION GROUP’S PUBLICATION OF UK TAX STRATEGY
Introduction
This document summarizes Avient Corporation and its worldwide affiliates’ (together “The Avient Group”) policy
and approach to conducting United Kingdom (“UK”) tax affairs and managing tax risk.
This document has been
approved by Avient Corporation’s Vice President, Tax, and by each of the UK sub-groups owned by the Avient
Group through such appropriate board of directors of the UK sub-groups.
https://www.avient.com/sites/default/files/2023-07/Avient_CodeConduct_2023_Germany.pdf
Das Unternehmen kann sich dafür entscheiden,
gemeinnützige Spenden an gemeinnützige
Organisationen zu machen, die durch die Corporate
Communications Abteilung genehmigt werden müssen.
Diese Offenlegungen sollten zur
Auflösung dem Chefjustiziar oder dem Corporate Ethics
Officer schriftlich vorgelegt werden.
Ein unabhängiges Unternehmen empfängt alle über das Internet gemachten und telefonischen Meldungen der
Ethikhotline und meldet die Informationen an den Corporate Ethics Officer.
https://www.avient.com/sites/default/files/2021-12/Chemically Resistant Materials Whitepaper.pdf
Schematic representation of creep mechanism; chain alignment and void formation in response to applied stress.
3© 2021 Avient Corporation, 33587 Walker Road, Avon Lake, Ohio USA 44012
There are several key factors which can influence
the timeline to ESC failure:
1.
List of polymers tested and identifying features.
6© 2021 Avient Corporation, 33587 Walker Road, Avon Lake, Ohio USA 44012
To assess the results of the chemical resistance
testing, an ESCR criteria was developed that took
into consideration a visual observation as well
as the mechanical data.
- -
8© 2021 Avient Corporation, 33587 Walker Road, Avon Lake, Ohio USA 44012
Table 3B.