https://www.avient.com/sites/default/files/2021-09/avnt-seaport-conference-presentation.pdf
Q 2 2 0 2 1 P E R F O R M A N C E
U P D AT E
$69
$122
2020PF 2021
$0.42
$0.87
2020PF 2021
Q2 2021 – ORGANIC PERFORMANCE
( T O TA L C O M PA N Y )
10
Sales Adjusted Operating Income
$870
$1,235
2020PF 2021
+ 42%
Adjusted EPS
+ 77% + 107%
(in millions) (in millions)
(1) (1) (1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Q2 2021 SEGMENT PERFORMANCE
11
CAI
$488
$624
Sales
($ in millions)
SEM Distribution
$54
$86
Operating Income
+28%
+59%
$239
$404
Sales
$15
$24
Operating Income
+69%
+60%
(1)
$159
$241
Sales
$17
$37
Operating Income
+52%
+118%
(1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
SPECIALTY EBITDA MARGIN EXPANSION
12
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%
18.5%
2018 2019 2020 YTD 2021
14.8% 15.2%
17.6%
19.1%
2018 2019 2020 YTD 2021
(1)
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
13
Legacy CAI
18.9% 18.9%
20.3%
2019 2020 YTD 2021
Legacy
Clariant MB
11.9%
13.8%
16.8%
2019 2020 YTD 2021
• Synergy capture translating to the
bottom line
• Positive mix with growth in healthcare,
consumer and packaging end-markets
• World-class vitality index of 35%
represents sales from products
introduced in the last five years.
ColorWorks innovation centers are specially
designed to foster imagination and enable
creative exploration of innovative solutions
• Focus on customers’ sustainability initiatives
through recyclability and post-consumer
recycled materials for packaging applications
• Supports 8-12% long-term revenue growth
expectations across our sustainable solutions
portfolio
14
2020 Pro forma $870 $69
Sustainable Solutions 66 37% 26
Healthcare 29 20% 7
Composites 12 36% 6
Growth in Asia / LATAM 47 39% 11
Other 190 48% 22
Sub-total $1,214 40% $141
COVID Response Applications (15) (8)
FX Impact 36 4
Synergies 11
Incentives, Travel, Other Employee Costs (26)
2021 Actual $1,235 42% $122
Q2 2021 ORGANIC SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
15
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Sales Growth Rate
Adjusted
Operating
Income$ millions
(1)
16
Q2 2020PF Q2 2021
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(2) Financial information is presented on a constant currency basis
(1,2)
(44% of total revenue)
(56% of total revenue)
Q2 END MARKET SALES PERFORMANCE
+26%
+38%
+46%
+103%
+51%
+9%
+7%
+67%
Energy Telecom Building &
Construction
Transportation Industrial Healthcare Packaging Consumer
Q2 YEAR-OVER-YEAR EBITDA BRIDGE
Q2 2020 Pro forma $ 106
Demand 69
17
Adjusted
EBITDA$ millions
• Demand impact driven by
growth in sustainable
solutions and consumer
products
• Price increases more than
offset raw material and
supply chain impacts
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(1)
CAI:
Price / Mix 40
Inflation (32)
SEM:
Price / Mix 23
Inflation (18)
Distribution:
Price / Mix 81
Inflation (77)
Net Price Benefit 17
Supply Chain Disruptions (14)
COVID Response Applications (8)
Synergies 11
Incentives, Travel, FX, Other (22)
Q2 2021 Actual $ 159
Q1 2021 Actual $ 161
CAI:
Price / Mix 32
Inflation (22)
SEM:
Price / Mix 15
Inflation (9)
Distribution:
Price / Mix 50
Inflation (48)
Net Price Benefit 18
Supply Chain Disruptions (12)
Demand / Seasonality (6)
Other (2)
Q2 2021 Actual $ 15918
Adjusted
EBITDA$ millions
• Price increases more than
offset raw material and
freight inflation impacts
• Demand impact driven by
Q2 seasonality for the
business
Q1 TO Q2 SEQUENTIAL EBITDA BRIDGE
Q 3 A N D F U L L Y E A R
2 0 2 1 O U T L O O K
$74
$98
2020 2021E
$0.46
$0.68
2020 2021E
ORGANIC GROWTH PROJECTIONS – Q3
( T O TA L C O M PA N Y )
20
Sales Adjusted Operating Income
$925
$1,150
2020 2021E
+ 24%
Adjusted EPS
+ 32% + 48%
(in millions) (in millions)
FULL YEAR GUIDANCE INCREASED
21
Sales Adj.
32
We are a specialty formulator that enables many of the world’s products through innovation and custom
solutions.
https://www.avient.com/sites/default/files/2024-03/Versalloy TPE Waterproof Seal on Vehicle Accessory.pdf
AUTOMOTIVE OEM
W A T E R P R O O F S E A L O N
A C C E S S O R Y P A R T
• FDA food contact compliance
• Color match to OEM-specified gray
• 70 Shore A durometer for overmolding to PP
• Scratch and mar resistance
• Provided material compliant with FDA 21
CFR 177.1210
• Supplied both the base resin and at-press
colorant to meet OEM specifications
• Offered TPV alloy grade that enabled easy
processing and durable surface aesthetics
• Specified material in North America with
design engineers and supplied out of a
facility in China to meet production needs
Versalloy™ XL Thermoplastic Elastomer
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2023-03/Onflex-Cell Pack Cooling Tube-Application Snapshot.pdf
AVIENT SOLUTION
V E H I C L E B AT T E RY
M A N U FA C T U R E R
C E L L P A C K C O O L I N G T U B E
• Comply with ISO 3384-1:2011 for TPE compression set
• Comply with ISO 11359-2:1999 standard for linear thermal
expansion
• Good ethanediol resistance
• Good sealing performance
• Customized a Shore 60A hardness TPE
formulation with good physical property
retention
• Achieved good compression set and bonding
performance with PA12
• Qualified thermal expansion by customer
• Provided excellent ethanediol resistance under
both low and high temperature conditions
KEY REQUIREMENTS
CHEMICAL RESISTANCE + SEALING
LEARN MORE
OnFlex™ TPE Custom Formulation
Copyright © 2023, Avient Corporation.
https://www.avient.com/sites/default/files/2021-11/avient-design-ergonomic-design-guide.pdf
The loss of a soft-touch feel
in thinner overmolds will be especially pronounced
in low-durometer materials such as the 3, 13 and
33 Shore A materials shown in Figure 10 .
Figure 17
is a bar graph of mass loss for a variety of GLS™ TPE
grades according to ASTM D3389 .
PRODUCT WITH TPE WITHOUT TPE % CHANGE
Tape Measure 20 .99 11 .99 43
Ice Cream Scoop 5 .99 4 .99 17
Shaving Razor 1 .30 0 .75 42
Mechanical Pencil 0 .50 0 .29 48
Cork Screw 7 .99 6 .99 13
Pizza Wheel 6 .99 4 .99 29
Can Opener 8 .99 5 .99 33
Utility Knife 10 .99 5 .79 47
Figure 25: Price comparisons — amounts are US dollars
Figure 26: Applying form, color and feel
Ergonomic Grip Design Guide 26
ADDITIONAL RESOURCES
To learn more about using TPEs to
enhance your products, visit the
Avient TPE Knowledge Center to find
resources including the comprehensive
GLS™ TPEs Overmolding Guide and the
TPE Injection Molding Guide.
https://www.avient.com/industries/packaging/cosmetics-packaging/fragrance
GLS™ TPEs - Injection Molding Guide
GLS™ TPEs - Overmolding Guide
GLS™ TPEs for soft touch packaging solutions
https://www.avient.com/industries/packaging/cosmetics-packaging/applicators
GLS™ TPEs - Injection Molding Guide
GLS™ TPEs - Overmolding Guide
GLS™ TPEs for soft touch packaging solutions
https://www.avient.com/industries/packaging/personal-care-packaging/sun-care
GLS™ TPEs - Injection Molding Guide
GLS™ TPEs - Overmolding Guide
GLS™ TPEs for soft touch packaging solutions
https://www.avient.com/industries/packaging/household-packaging/fabric-care
GLS™ TPEs - Injection Molding Guide
GLS™ TPEs - Overmolding Guide
GLS™ TPEs for soft touch packaging solutions
https://www.avient.com/industries/packaging/household-packaging/surface-care
GLS™ TPEs - Injection Molding Guide
GLS™ TPEs - Overmolding Guide
GLS™ TPEs for soft touch packaging solutions
https://www.avient.com/industries/packaging/household-packaging/household-cleaners
GLS™ TPEs - Injection Molding Guide
GLS™ TPEs - Overmolding Guide
GLS™ TPEs for soft touch packaging solutions