https://www.avient.com/sites/default/files/2023-07/Avient-2022-Sustainability-Report.pdf
Coincident with the transformational
acquisition of the Clariant Color business in 2020, we branded the collective enterprise
Avient—a new name for a new kind of materials company.
Rubber and Plastics Manufacturers industry average.
That is
why Avient joined the Alliance to End Plastic Waste.
https://www.avient.com/sites/default/files/2024-01/AVNT January IR Presentation_w Non-Gaap Recs.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
• 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 effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks;
• Changes in laws and regulations regarding plastics in jurisdictions where we conduct business;
• 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;
• Our ability to achieve strategic objectives and successfully integrate acquisitions, including Avient Protective Materials (APM);
• An inability to raise or sustain prices for products or services;
• Our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends;
• Information systems failures and cyberattacks;
• Amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions; and
• Other factors affecting our business beyond our control, including without limitation, changes in the general economy, changes in interest rates, changes in the rate of inflation, any recessionary conditions, and terrorism or hostilities
Use of Non-GAAP Measures
This presentation includes the use of both GAAP (generally accepted accounting principles) and non-GAAP financial measures.
GUIDANCE
$800
$754
$128
$123
Sales Adjusted EBITDA
$0.56 $0.57
13
• Demand impacted by destocking
and cautious customer sentiment
• Positive net price benefit:
o CAI - Pricing flat and raw
material deflation
o SEM - Pricing flat with
unfavorable mix related to
healthcare, more than offset
with raw material deflation
• Cost reductions driven by Clariant
synergies and reduced
administrative costs
Q3 EBITDA BRIDGE
($ millions)
CAI:
Price / Mix -)
Deflation 22)
SEM:
Price / Mix (6)
Deflation 13)
Net Price Benefit 29)
Cost Reductions 13)
Wage Inflation (8)
FX 1)
Q3 2023 Actual $ 123)
Adjusted
EBITDA
Q3 2022 Pro Forma $ 137)
Demand (49)
14
2023 G U I DAN CE
Q4 2023 GUIDANCE VS.
PRIOR YEAR
$790
$710
2022 2023
$107
$112
2022 2023
Sales Adjusted EBITDA
$0.42
$0.47
2022 PF 2023
- 10% + 5% + 12%
Sales Adjusted EBITDA Adjusted EPS
16
$112
$500
$0.47
Q4 AND FULL YEAR 2023 GUIDANCE
$710
$3,130
Sales Adjusted EBITDA Adjusted EPS
17
(in millions) (in millions)
Guidance: Free Cash Flow
$180 $180
Prior Guidance Guidance
FREE CASH FLOW & INCREASED DIVIDEND
13th Consecutive Dividend Increase
0.16
0.26
0.42
0.58
0.79
0.85
0.99
1.03
2011 2013 2015 2017 2019 2021 2023 2024
S U S TAI NABI L I T Y DAY
RE CAP
SUSTAINABILITY AS A GROWTH DRIVERLONG-TERM REVENUE GROWTH DRIVERS
60%+
Key Growth
Drivers
Sustainable
Solutions
Composites, Healthcare,
Asia / LATAM
Overlap
Other
(GDP Growth)
Total Company Revenue
Growth Drivers Long-Term
Growth Rate
Sustainable Solutions 8–12%
Composites 8–10%
Healthcare 8–10%
Asia / LATAM 5%
Other (GDP growth) 0–2%
Avient 6%
SUSTAINABILITY TRENDS DRIVE LONG-TERM GROWTH
8-12%
Long Term
Growth
50
90
2022 2030
Medical Plastics
Market Size
(in $Billions)
2020 2030
Recycled
Plastics
Virgin
Plastics
Growing Demand
for Recycled
Content
Avient Sustainable
Solutions
46
2023 2032
Global Offshore Annual
Wind Installations
(in Gigawatts)
Sources: McKinsey, Bloomberg, Grand View Research
SUSTAINABILITY TRENDS DRIVE
LONG-TERM GROWTH
21
• Transformative acquisitions
combined with divestitures of
more cyclical businesses have
improved margins over 400 bps
since 2018
• 20% long-term margin goal to
be driven by key growth drivers,
with sustainable solutions
playing a meaningful role
5.4%
11.5%
2006 2018 2023E Recovery Growth
Drivers
Strategic
Objective
20%+
+1%+
+3%+
ADJUSTED EBITDA MARGIN EXPANSION
22
• 6% annualized long-term sales growth leveraging
sustainable solutions, composites, healthcare, and
emerging regions
• Expand EBITDA margins to 20%
• Deliver annual EBITDA and EPS growth of
10% and 15%
• Maintain asset-light, 80% free cash flow conversion
profile and be valued as a specialty formulator
• Continue fostering our Great Place to Work® culture
CREATING A WORLD-CLASS
SUSTAINABLE ORGANIZATION
23
PEER COMPARISONS
AVIENT IS ASSET LIGHT
Capex / Revenue
2023E (%)
Avient Specialty
Other Specialty /
Note: Avient reflects 2023 estimated revenue of $3,130 and estimated run-rate CAPEX of $110M.
26
3.5
1.8
2.7
3.1 3.3 3.7
3.0
3.7
4.7 4.8
6.8 6.8
8.7
11.1
Av
ie
nt
AV
PM FM
N C
FREE CASH FLOW CONVERSION
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/news/polyone-expands-automotive-engineered-polymer-portfolio-electriplast-conductive-long-fiber-technology
ElectriPlast Corp. is a leading technology innovator in conductive plastics with a broad intellectual property portfolio and deep application development expertise.
Its core material, ElectriPlast®, is an electrically conductive resin-based material whose properties allow it to be molded into infinite shapes and sizes associated with plastics and rubbers, while reducing component weight by 40 to 60%.
Integral is a leader in conductive hybrid plastics, having over 50 issued patents for conductive plastic.
https://www.avient.com/news/advanced-technologies-and-sustainable-material-innovations-avient-debut-chinaplas-2024
The plastics industry is evolving rapidly to address the need for sustainable and circular solutions that improve recycling, product functionality, and manufacturability.
ColorForward™ 2025: the 19th annual edition of Avient’s acclaimed color trend forecast, illustrating a palette of 20 mid-tone colors in four major trend themes, predicted to elicit high consumer response and inspire brand owners and designers of plastic products
Avient is certified ACC Responsible Care®, a founding member of the Alliance to End Plastic Waste and certified Great Place to Work®.
https://www.avient.com/knowledge-base/article/optimizing-automotive-structural-component-designs-advanced-modeling
Reinforced polymer materials are increasingly being used for structural applications because they allow manufacturers to replace traditional metal components with lighter-weight plastics.
However, transitioning from metal to plastic requires thorough technical analysis and preparation.
By factoring in static and dynamic data, the CAE simulations can identify where an injection molded plastic part may crack or break when exposed to real-world conditions such as physical loading force, sudden impact (crash simulation), or environmental factors like temperature and humidity.
https://www.avient.com/products/polymer-additives/processing-enhancement-additives/cesa-clean-additives
Plastics processing periodically requires the complete removal of thermooxidized deposits from extruders and injection molding machines.
The effectiveness of Cesa Clean comes from the mechanical scrubbing action during purging between the material, plasticizing screw, and barrel.
Improve the flow characteristics of plastics during process and enhance both appearance and function
https://www.avient.com/knowledge-base/article/optimizing-automotive-structural-component-designs-advanced-modeling?rtype[]=1164
Reinforced polymer materials are increasingly being used for structural applications because they allow manufacturers to replace traditional metal components with lighter-weight plastics.
However, transitioning from metal to plastic requires thorough technical analysis and preparation.
By factoring in static and dynamic data, the CAE simulations can identify where an injection molded plastic part may crack or break when exposed to real-world conditions such as physical loading force, sudden impact (crash simulation), or environmental factors like temperature and humidity.
https://www.avient.com/news/generational-changes-environmental-concerns-and-new-digital-universe-expected-drive-color-preferences-2023
Caption: Avient today released ColorForward™ 2023, the 17th edition of the annual color forecasting guide for the plastics industry created by its ColorWorks™ team.
The result is a unique package of inspirational materials to help plastic product designers and marketing professionals make more informed color choices for new products and packaging.
Avient employs approximately 8,400 associates and is certified ACC Responsible Care®, a founding member of the Alliance to End Plastic Waste and certified Great Place to Work®.
https://www.avient.com/news/new-details-specialty-sustainable-technologies-and-services-avient-featured-k-2022
Avient Joint Study with Borealis Reveals Wide Range of Color Options for Recycled Plastics
The K show is the world’s largest plastics industry event.
Avient is certified ACC Responsible Care®, a founding member of the Alliance to End Plastic Waste and certified Great Place to Work®.
https://www.avient.com/news/colornow-digital-service-avient-offers-immediate-color-matching-and-streamlined-color-design-process
SINGAPORE – October 12, 2023 – Avient Corporation, a premier provider of specialized and sustainable material solutions and services, today announced its ColorNow™ digital service is offering immediate color matching and an enhanced color design process for plastic manufacturers.
In particular, it addresses the differences between the optical properties of molded plastic parts and electronic displays, the different standards used in the electronic display industry versus the surface color industry, and the problem that feasible colors in molded plastic parts have a diverse range compared to those that can be shown by electronic displays.
Avient is certified ACC Responsible Care®, a founding member of the Alliance to End Plastic Waste and certified Great Place to Work®.