https://www.avient.com/sites/default/files/2021-07/avnt-q2-2021-earnings-release.pdf
Unless otherwise noted herein, all comparisons to prior
year results are pro forma* for the Clariant Masterbatch acquisition.
In addition, it has been just over a year since we acquired Clariant Masterbatch and we
became Avient.
Eastern Time on July 30, 2021.
3
*Pro Forma
The company acquired the Clariant Masterbatch business (“CMB”) on July 1, 2020 (the
“Acquisition Date”).
https://www.avient.com/sites/default/files/2023-04/Colorant Chromatics Transcend Healthcare Colorants Product Bulletin.pdf
Colorant Chromatics™ Transcend™ Premier Healthcare Colorants
Colorant Chromatics™ Transcend™ Premier Healthcare
Colorants offer ultra-high heat resistance and
sophisticated color options for medical applications.
The Transcend line of high-performance colorants
features solid opaque colors and transparent colors
that consist of bright, vibrant tones.
NAME COLOR FAMILY COLOR CODE
TRANSPARENTS
Transparent Blue Violet Violet PPT6730-4005
Transparent Aquamarine Blue PPT6730-5018
Transparent Teal Green Green PPT6730-564C
Transparent Optimal Yellow Yellow PPT6730-458C
Transparent Energy Orange Orange PPT6730-150C
Transparent Crimson Red PPT6730-2009
Transparent True Gray Gray PPT6730-7001
OPAQUES
Linen White White PPO6730-9010
Hygienic White White PPO6730-9001
Ice Gray Gray PPO6730-5C
True Gray Gray PPO6730-424C
Shadow Gray PPO6730-446C
Gunmetal Gray PPO6730-426C
Black Black PPO6730-6C
Powder Blue Blue PPO6730-2127C
Smoky Blue Blue PPO6730-7682C
Bright Azure Blue PPO6730-653C
Cobalt Blue PPO6730-5002
Navy Blue PPO6730-5004
Aquamarine Blue PPO6730-7699C
Blue Violet Violet PPO6730-7456C
Emerald Green PPO6730-6016
Clover Green PPO6730-7723C
Optimal Yellow Yellow PPO6730-459C
Energy Orange Orange PPO6730-2000
Crimson Red PPO6730-3000
Colors may vary from actual color shown.
https://www.avient.com/sites/default/files/2022-11/AVNT Q3 2022 Earnings Presentation - Website Final.pdf
Additionally, Adjusted EPS excludes the impact of special items and amortization expense
associated with intangible assets.2
T RAN S FO R MAT IO NAL
OVE RV IE W
Avient Protective
Materials
Dyneema
®
RECENT TRANSACTIONS
Acquired Divested
$1.45 B $0.95 B
4
Distribution
UPDATED CAPITAL STRUCTURE
& LIQUIDITY
• Proceeds from completed
sale of Distribution used to
pay near-term maturing debt
to strengthen balance sheet
• Fixed/floating debt ratio of
~55/45
• Proven track record of
deleveraging following major
acquisitions through strong
free cash flow generation
• 2022 pro forma net
debt/adjusted EBITDA
expected to be 3.1x
$725 $725
$575 $500
$600
$525
$650
$650
$600
Capital Structure
Cash
$544
Undrawn
Revolver
$250
Liquidity
$3.15B
$2.40B
2030 Notes
2029 Term Loan
2026 Term Loan
2025 Notes
2023 Notes
After Dyneema
Acquisition
After Distribution
Divestiture
$794M
(1) $250M reflects estimated undrawn revolver following the divestiture of Distribution
5
PREVIOUS TRANSACTIONS
Performance
Solutions
Products &
$0.8 B
COLOR
$1.4 B
Acquired (2020)Divested (2019)
6
• 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
• $75 million of realized synergies anticipated in 2022
• Acquisition completed on July 1, 2020 for $1.45 billion.
Purchase price multiple rapidly declining on strength of
business and synergy capture
7
$133
$201
2019PF 2022E
7
Clariant Color EBITDA Growth
Purchase Price Multiple
10.8x
7.0x
6.4x
2019PF 2021 2022E w/ Full
Synergies
11.9%
16.3%
2019PF 2022E
EBITDA Margins
CLARIANT COLOR:
TRANSFORMATIONAL ACQUISITION
(1) Financial information is pro forma to include a full year of Clariant Color business
SUNBELT PVC Resins DSS
20 Acquisitions
$4.8B Investment
$2.7B of Annual
Revenue
5 Divestments
$2.3B Proceeds
TPE
PP&S
HISTORIC SPECIALIZATION THROUGH M&A
8
Distribution
DSM Protective
Materials
BOLT-ON ACQUISITION HISTORY
9
Commercial
Resources
Operating Income
Operating Margins
259
363
$40
$139
Established Acquisitions
(> 7 years)
+ 40% + 248% + 1300 bps
I N V E S T T O G R O W
SPECIALTY TRANSFORMATION
T O D A Y
46%
67%
86%
100%
0%
60%
80%
100%
2005 2010 2019 2021 2022 PF
%
o
f A
d
ju
st
ed
E
B
IT
D
A
• Commodity JVs
• Distribution
• Performance Products & Solutions
• Specialty Businesses
(1) Adjusted EBITDA is EBITDA excluding corporate costs and special items
(2) Pro forma for the acquisition of Dyneema® and divestiture of Distribution
(1
)
(2)
10
Building &
43%
14%
Telecom.
2%
2006 2022 Pro Forma
21%
Building &
Telecom.
END MARKET FOCUS ON LESS CYCLICAL
INDUSTRIES
11
14.8%
17.6%
21.0%
2018 2020 2022 PF
1.8%
2006
15.3%
16.2%
17.0%
2018PF 2020PF 2022E
CAI
2.7%
2006
SEM
SPECIALTY EBITDA MARGIN EXPANSION
12
• Portfolio transformation
accelerates growth in less
cyclical, higher margin end
markets
• Investments in our
composites platform
continue to drive margin
expansion
(1) (1)
(1) 2018 and 2020 financial information is pro forma to include a full year of Clariant Color acquisition
PORTFOLIO EVOLUTION OVER THE YEARS
13
Adj.
https://www.avient.com/sites/default/files/2020-09/edgetek-processing-guide.pdf
Base Resin PPA PC PSU PES PPS
Co-
polymer
Acetal
PEEK PA
Barrel Temperatures* °F (°C)
Rear Zone 550–580
(288–305)
550–590
(288–310)
600–640
(316–338)
630–660
(332–338)
550–580
(288–304)
350–370
(177–188)
660–700
(349–371)
440–490
(227–254)
Center Zone 560–600
(293–316)
570–600
(300–316)
620–670
(327–354)
650–680
(343–360)
560–615
(293–324)
380–390
(193–200)
700–730
(371–388)
470–510
(243–266)
Front Zone 580–620
(304–327)
580–630
(304–322)
630–680
(332–360)
670–730
(354–388)
590–630
(310–332)
390–430
(200–221)
720–750
(382–400)
490–540
(254–282)
Nozzle 575–615
(302–324)
580–630
(304–322)
630–680
(332–360)
680–700
(360–371)
600–625
(316–330)
380–415
(193–213)
720–750
(382–400)
520–570
(271–300)
Melt
Temperature
575–615
(302–324)
580–625
(304–330)
625–675
(330–358)
650–710
(343–377)
600–625
(316–330)
370–410
(188–210)
670–740
(354–393)
520–570
(271–300)
Mold
Temperature
250–300
(121–150)
175–240
(80–116)
190–300
(88–150)
225–325
(107–164)
250–325
(121–164)
190–250
(88–121)
290–375
(143–190)
150–200
(66–93)
Pack & Hold
Pressure
50%–75%
of Injection Pressure
Injection
Velocity
in/s
1.0–3.0
Back Pressure
psi 50
Screw Speed
rpm 50–90
Drying
Parameters
°F (°C)
6 hrs @ 175
(80)
4 hrs @ 250
(121)
4 hrs @ 275
(135)
4 hrs @ 250
(121)
3 hrs @ 300
(150)
2 hrs @ 200
(93)
3 hrs @ 275
(135)
4 hrs @ 180
(82)
Cushion
in 0.125–0.250
Screw
Compression
Ratio
2.5:1–3.5:1 2.0:1–2.5:1 2.5:1–3.5:1 2.5:1–3.5:1 2.5:1–3.5:1 2.5:1–3.5:1 2.5:1–3.5:1 2.5:1–3.5:1
Nozzle
Type
General
General
General
General
General
General
General
Reverse
Taper
Clamp
Pressure 5–6 Tons/in2 of projected area of cavities and runner system
* Barrel temperatures should be elevated for compounds designed for electrical insulative properties.
https://www.avient.com/sites/default/files/2021-01/w-9-clariant-plastics-coatings-usa-llc-july-20201.pdf
Line 6
Enter your city, state, and ZIP code.
So-called trust account that is not
a legal or valid trust under state law
The grantor-trustee1
The actual owner1
6.
Form W-9 (Rev. 10-2018) Page 6
The IRS does not initiate contacts with taxpayers via emails.
https://www.avient.com/sites/default/files/2020-11/investing-in-avient_0.pdf
Design times can be less than
three days for colorants.
There are significant revenue opportunities generated from the combined color and additive technology strengths of the two legacy companies.
Whether
an additional line at an existing
manufacturing plant, or a new
facility in a growing region, we
ramp-up quickly and cost-efficiently.
17
Capex / Revenue
2021E (%)
AVIENT IS ASSET LIGHT
Avient Specialty
Other
2
3 2 2 3 3 3
3 4 5 5 5 5 5 6 6 7
7
9
t
(E
x
c
l.
https://www.avient.com/news/avient-launches-artisan-high-gloss-pre-colored-thermoplastics-paint-replacement
Homepage
//
News Center
//
Avient Launches Artisan™ High-Gloss, Pre-Colored Thermoplastics for Paint Replacement
The Artisan nylon grade is globally available in a range of customizable colors.
NOTE: On July 1, 2020, PolyOne and Clariant Masterbatches joined together as Avient, a new kind of materials company focused on conquering customer challenges and unlocking the potential for innovation and sustainability around the globe.
https://www.avient.com/company/sustainability/sustainability-report/reporting/gri
102–6
Avient 2023 Proxy Statement Pages 66-72
403-6
https://www.avient.com/sites/default/files/resources/POL%2520Gabelli%2520IR%2520Presentation%2520w%2520Non-GAAP%252003%252020%25202014.pdf
Use of Non-GAAP Measures
Page 3
PolyOne Commodity to Specialty Transformation
Page 4
• Continue specialty
transformation
• Targeting $2.50
Adjusted EPS by
2015, nearly
double 2013 EPS
• Drive double digit
operating income
and adjusted EPS
growth
• 17 consecutive
quarters of double-
digit adjusted EPS
growth
• Shift to faster
growing, high
margin, less cyclical
end markets
• Key acquisitions
propel current and
future growth, as
well as margin
expansion
• Established
aggressive 2015
targets
• Steve Newlin
Appointed,
Chairman, President
and CEO
• New leadership
team appointed
• Implementation of
four pillar strategy
• Focus on value
based selling,
investment in
commercial
resources and
innovation to drive
transformation
• Volume driven,
commodity
producer
• Heavily tied to
cyclical end markets
• Performance largely
dependent on non-
controlling joint
ventures
2000-2005 2006 - 2009 2010 – 2013 2014 and beyond
-150.00%
-50.00%
50.00%
150.00%
250.00%
350.00%
PolyOne S&P 500 Russell 2000 Dow Jones Chemical
All time high of
$38.38
March 7th, 2014
• 17 consecutive quarters of
double digit EPS growth
• 49% CAGR adjusted EPS
expansion 2006-2013
• 2013 stock price increased
73% versus 30% growth in the
S&P
• More than seven fold increase in
market cap: $0.5b $3.6b
Strategy and Execution Drive Results
Page 5
Appliance
4%
Building &
Construction
13%
Wire & Cable
9%
Electrical &
Electronics
5%
Consumer
10%Packaging
16%
Industrial
12%
HealthCare
11%
Transportation
18%
Misc.
2%
United
States
66%
Europe
14%
Canada
7%
Asia
6%
Latin
America
7%
PP&S
Specialty
53%
Distribution
27%
0.12
0.27 0.21
0.13
0.68
0.82
1.00
1.31
2.50
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
$2.50
2006 2007 2008 2009 2010 2011 2012 2013 2015
Target
Ad
ju
st
ed
E
ar
ni
ng
s P
er
S
ha
re
2013 Revenues: $3.8 Billion
End Markets
2013 Revenues: $3.8 Billion
EPS
Page 6
PolyOne
At A Glance
Old
PolyOne Transformation
*Operating Income excludes corporate charges and special items
2%
34% 43%
62%
65-
75%
0%
20%
40%
60%
80%
100%
2005 2008 2010 2013 2015
%
o
f O
pe
ra
tin
g
In
co
m
e*
JV's Performance Products & Solutions Distribution Specialty
Specialty OI $5M $46M $87M $195M Target
Mix Shift Highlights Specialty Transformation
2015
Target
Page 7
2006 2013 2015
“Where we were” “Where we are” Target
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 12.2% 12 – 16%
Global Specialty Engineered
Materials 1.1% 9.3% 12 – 16%
Designed Structures & Solutions -- 5.6% 8 – 10%
Performance Products &
Solutions 5.4% 7.2% 9 – 12%
Distribution 2.6% 5.9% 6 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 62% 65 – 75%
3) ROIC* (after-tax) 5.0% 9.1% 15%
4) Adjusted EPS Growth N/A 31% Double Digit
Expansion
Proof of Performance & 2015 Goals
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
Page 8
Bridge To $2.50 Adjusted EPS By 2015
2015 EPS: $2.50
2013 EPS: $1.31
Mid single digit
revenue CAGR
Page 9
Mergers & Acquisitions
Spartech accretion
Incremental share buybacks
Ongoing LSS Programs
(50-100 bps/yr)
Accelerated Innovation &
Mix Improvement
Innovation Drives Earnings Growth
$20.3
$52.3
2006 2013
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
*Percentage of Specialty Platform revenue from products introduced in last five years
Page 10
14.3%
30.7%
2006 2013
Specialty Platform
Gross Margin %
19.5%
43.0%
2006 2013
Healthcare
Consumer
Packaging and Additive Technology
Transportation
Page 11
Unique and Innovative Solutions that Help
Customers Win
https://www.dropbox.com/sh/dwe4t8aacvhb8ui/uD3p_bdglP/Presentation revise pics/GLS Beverage can closure XO 2.jpg
https://www.dropbox.com/sh/dwe4t8aacvhb8ui/-YgkycKypw/Anti-Counterfeiting release & images/GN1979.JPG
Net Debt / EBITDA* = 1.8x
$48
$317
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Significant Debt Maturities
As of December 31, 2013
($ millions)
Page 12
Coupon Rates: 7.500% 7.375% 5.250%
Debt Maturities & Pension Funding – 12/31/13
*TTM 12/31/2013 ** includes US-qualified plans only
60%
100%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2013
Pension Funding**
As of December 31, 2013
Free Cash Flow and Strong Balance Sheet Fund Investment
•Targets that expand our:
• Specialty offerings
•End market presence
•Geographic footprint
•Operating Margin
• Synergy opportunities
•Adjacent material solutions
•Expanding our sales,
marketing, and technical
capabilities
• Investing in operational and
LSS initiatives (including
synergy capture)
•Manufacturing alignment Organic
Growth
Share
Repurchases
Dividends
Acquisitions
Page 13
$0.16
$0.20 $0.24
$0.32
$0.00
$0.10
$0.20
$0.30
$0.40
2011 2012 2013 2014
Annual Dividend
• Repurchased ~5 million
shares in 2013
• 15 million shares
are available for
repurchase under
the current
authorization
The New PolyOne: A Specialty Growth Company
2015 Target: $2.50 Adjusted EPS
Why Invest In PolyOne?
Platform operating income mix percentage 2005Y* 2006* 2008Y* 2010Y* 2013Y
Global Specialty Engineered Materials $ 0.4 $ 3.9 $ 17.6 $ 49.7 $ 57.2
Global Color, Additives and Inks 4.3 8.9 28.1 37.7 104.0
Designed Structures and Solutions - - - - 33.4
Specialty Platform $ 4.7 $ 12.8 $ 45.7 $ 87.4 $ 194.6
Performance Products and Solutions 75.7 64.2 31.3 54.0 56.0
Distribution 19.5 19.2 28.1 42.0 63.3
SunBelt Joint venture 91.9 102.9 28.6 18.9 -
Corporate (51.5) 34.5 (425.1) (27.7) (82.4)
Operating income (loss) GAAP $ 140.3 $ 233.6 $ (291.4) $ 174.6 $ 231.5
Less: Corporate operating expense 51.5 (34.5) 425.1 27.7 82.4
Operating income excluding Corporate $ 191.8 $ 199.1 $ 133.7 $ 202.3 $ 313.9
Specialty platform operating mix percentage 2% 6% 34% 43% 62%
* Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
Reconciliation to Condensed Consolidated Balance Sheets 2013
Short-term debt and current portion of long-term debt $ 12.7
Long-term debt 976.2
Less cash and cash equivalents (365.2)
Net debt $ 623.7
Adjusted EBITDA 2013
Income before income taxes $ 151.0
Interest expense, net 63.5
Depreciation and amortization 108.8
Special items in EBITDA 31.7
Adjusted EBITDA $ 355.0
2
Platform sales and operating income (OI) 2006Y* 2013Y
Global Specialty Engineered Materials sales $ 345.3 $ 615.5
Global Color, Additives and Inks sales 531.8 852.3
Designed Structures and Solutions sales - 597.4
Specialty Platform sales 877.1 2,065.2
Performance Products and Solutions sales 1,166.2 773.2
PolyOne Distribution sales 732.8 1,075.2
Corporate and eliminations (153.7) (142.4)
Total sales $ 2,622.4 $ 3,771.2
Global Specialty Engineered Materials OI $ 3.9 $ 57.2
Global Color, Additives and Inks OI 8.9 104.0
Designed Structures & Solutions OI - 33.4
Specialty Platform OI 12.8 194.6
Performance Products and Solutions OI 64.2 56.0
PolyOne Distribution OI 19.2 63.3
Sunbelt Joint Venture OI 102.9 -
Corporate and eliminations (4.6) (52.4)
Special items in OI 39.1 (30.0)
Operating income GAAP 233.6 231.5
Sunbelt equity income (107.0) -
Special items in OI (39.1) 30.0
Adjusted operating income $ 87.5 $ 261.5
Global Specialty Engineered Materials - OI % of sales 1.1% 9.3%
Global Color, Additives and Inks - OI % of sales 1.7% 12.2%
Designed Structures & Solutions - OI % of sales - 5.6%
Specialty platform OI - % of sales 1.5% 9.4%
PP&S operating OI - % of sales 5.5% 7.2%
Distribution OI - % of sales 2.6% 5.9%
PolyOne OI adjusted - % of sales 3.3% 6.9%
* Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
https://www.avient.com/sites/default/files/2022-03/Avient 2021 Annual Report.pdf
Tianjin, China 66.
ITEM 6.
Clariant Color Acquisition
On July 1, 2020, the Company completed the Clariant Color Acquisition.