https://www.avient.com/news/revolve-tactical-tripod-rolatube-stands-out-competition-polystrand-composites-avient
CLEVELAND – January 12, 2023 – Avient Corporation, a premier provider of specialized and sustainable material solutions and services, today announced a successful collaboration with its customer, Rolatube, to help develop the new Revolve™ tactical tripod using Polystrand™ composites from Avient.
For more information on the Revolve tripod, visit https://revolve-tec.com/.
To access Avient’s news library online, please visit https://www.avient.com/news-events.
https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Investor Presentation_website w Non-GAAP.pdf
In particular, these include statements relating to future actions;
prospective changes in raw material costs, product pricing or product demand; future performance; estimated capital expenditures; results of current and anticipated market conditions and market strategies; sales efforts; expenses; the outcome of
contingencies such as legal proceedings and environmental liabilities; and financial results.
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;
• Disruptions or inefficiencies in our supply chain, logistics, or operations;
• Changes in laws and regulations in jurisdictions where we conduct business, including with respect to plastics and climate change;
• Fluctuations in raw material prices, quality and supply, and in energy prices and supply;
• Demand for our products and services;
• 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 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;
• Our ability to achieve strategic objectives and successfully integrate acquisitions, including the implementation of a cloud-based enterprise resource planning system, S/4HANA;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, geopolitical conflicts and any recessionary conditions
Use of Non-GAAP Measures
This presentation includes the use of both GAAP (generally accepted accounting principles) and non-GAAP financial measures.
Q1 2023
(TOTAL COMPANY)
$846 $829
$134
$143
17.3%
(in millions)
$0.63
$0.76
(in millions)
+ 7% + 21%
Sales Adjusted EBITDA Adjusted EPS
9
- 2%
15.8%
+150 bps
Q1 2024 SEGMENT PERFORMANCE
(COLOR, ADDITIVES & INKS)
$537
$515
$91
$97
18.8%
(in millions) (in millions)
+ 7%
10
- 4%
17.0%
+180 bps
• Year over year demand
continues to improve for the
segment but slowly due to
continued weakness in Europe
• Raw material deflation & cost
reduction actions primary drivers
of adjusted EBITDA growth and
margin expansion of +180 bps vs
Q1 2023
Q1 2024 SEGMENT PERFORMANCE
(SPECIALTY ENGINEERED MATERIALS)
$310
$314
$64
$73
23.2%
(in millions) (in millions)
+ 14%
11
+ 1%
20.8%
+240 bps
• Sales growth in defense end
market offset by weaker
demand in telecommunications
end market
• Raw material deflation and
favorable mix impact from
defense sales primary drivers
of adjusted EBITDA growth and
margin expansion of +240 bps
vs Q1 2023
Q1 EBITDA BRIDGE
(TOTAL COMPANY)
12
$ millions
CAI:
Price / Mix (1)
Deflation 16
SEM:
Price / Mix 4
Deflation 7
Net Price Benefit 26
Wage/Other Inflation (9)
FX (2)
Q1 2024 $143
Adjusted
EBITDA
Q1 2023 $ 134
Demand (6)
• Positive net price benefit:
o Favorable raw material
deflation in both segments
• Wage and other inflation more than
offset cost reductions/synergies
2024 G U IDA N CE
FY 2024 GUIDANCE
Original Revised
Adjusted EBITDA $505 to $535 million $510 to $535 million
Adjusted EPS $2.40 to $2.65 $2.50 to $2.65
Interest Expense $105 to $110 million $105 million
Adjusted Effective Tax Rate 23% to 25% 23% to 25%
Capital Expenditures ~$140 million ~$140 million
14
Q2 2024: Adjusted EPS of $0.71
CE O “TO P O F M IN D ”
FO CU S ARE A S
AREAS OF FOCUS
16
+7%
Drive Profitable Organic
Top-Line Growth with
Margin Expansion
Amplify Innovation Build Leadership & Talent
Pipeline
AP P EN D IX
19
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%
2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
19%
23%Industrial
Building and
END MARKET REVENUE
$2,007M $358M
$1,138M $224M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$502M$3,143M
(1)
21
(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
22
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 B ILL ION
52%
35%
23
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)
24
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.
https://www.avient.com/sites/default/files/2022-05/AVNT May IR Presentation w Non GAAP Recs.pdf
In particular, these include statements relating to future actions; prospective changes in raw material costs, product
pricing or product demand; future performance; estimated capital expenditures; results of current and anticipated market conditions and market strategies; sales efforts; expenses; the outcome of contingencies such as legal proceedings
and environmental liabilities; and financial results.
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
• The time required to consummate the acquisition of the Dyneema business, the satisfaction or waiver of conditions in the purchase agreement, the ability to obtain required regulatory or other third-party approvals and consents and
otherwise consummate the proposed acquisition of the Dyneema business;
• Our ability to achieve the strategic and other objectives relating to the proposed acquisition of the Dyneema business and possible sale of the Distribution business;
• 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;
• The current and potential future impact of the COVID-19 pandemic on our business, results of operations, financial position or cash flows, including without any limitation, any supply chain and logistics issues;
• Changes in polymer consumption growth rates and 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 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 described in our Annual Report on Form 10-K for the year ended December 31, 2021 under Item 1A, “Risk Factors.”
Outdoor High Performance) 8 18% 3
Growth in Asia / LATAM 6 3% 2
Other 100 19% 5
Sub-total $1,327 14% $146
Outdoor High Performance Impact (5) (3)
Wage Inflation and Overtime (11)
Other Supply Chain Costs (4)
Synergies 5
Incentives, Other Employee Costs 8
FX (28) (5)
Q1 2022 $1,294 11% $136
Q1 2022 SALES AND OPERATING INCOME
Sales Growth Rate
Operating
Income$ millions
EBITDA
Q1 EBITDA BRIDGE
12
Price increases more than
offset raw material and
supply chain impacts
Q1 2021 $ 161
Demand (23)
$ millions
CAI:
Price / Mix 77
Inflation (54)
SEM:
Price / Mix 41
Inflation (26)
Distribution:
Price / Mix 84
Inflation (82)
Net Price Benefit 40
Wage Inflation and Overtime (11)
Other Supply Chain Costs (4)
Synergies 5
Incentives, Other Employee Costs 8
FX (5)
Q1 2022 $ 171
China Lockdowns / Russia Impact $ (7)
Transportation (7)
Outdoor High Performance (3)
Q1 EPS BRIDGE
13
Q1 2021 - Adjusted EPS 0.89$
CAI 0.08
Specialty Engineered Materials 0.06
Distribution 0.00
Corporate Costs 0.02
F/X (0.04)
Segment OI 0.12
Tax Rate (0.02)
Q1 2022 - Adjusted EPS 0.99$
2022 O U T LO 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% 5%
Asia / LATAM 5% 5%
Other (GDP growth) 2–3% 2–3%
Avient 6.5% 6%
15
Excluding Outdoor High Performance 20%
(8% excl.
https://www.avient.com/sites/default/files/2020-08/colormatrix-select-product-bulletin-1.pdf
ColorMatrix™ Select™ Rapid Color Prototyping Technology
Color creation, selection and supply service for greater control, choice
and speed in color development for injection molded plastic products
WHAT IT IS
With the ColorMatrix™ Select™ system, managing
your own color creation and supply online couldn’t
be easier.
TECHNOLOGY COMPONENTS
Select Rapid Color Prototyping Technology
includes:
Select Color Cell
• Color scanning or matching
• Creation of color plaques
Online Software
• Formulation and price generator
• Web-based processor
Automated Dispenser
• Globally standard base colors
• Consistent production from recipes
HOW IT WORKS
Select allows you to:
• Instantaneously create a new color using
your own standards, spectrophotometer or
colorimeter data, or the software’s
built-in design tools
• Produce small quantities of color masterbatch
for use in validating your color match
• Combine advanced liquid colorants,
cloud-access software and automated
dispensing technology
• Carry out color modeling and rapid iteration
Select also helps you:
• Choose the right color by providing a quick
and cost effective way to model, sample, and
test color options
• Facilitate prototyping and variation testing
PRODUCT BULLETIN
CONVENTIONAL COLOR
DEVELOPMENT PROCESS
Multiple rounds of sampling, trials and
approvals, usually over many weeks.
https://www.avient.com/resources/safety-data-sheets?page=3120
GEON L4067PM BROWN (Pricing)
GEON M3400 Gray (pricing only)
Services
https://www.avient.com/investor-center/news/avient-increases-dividend-12
th, where it will provide details on its long-term growth drivers, future synergy capture from the Clariant Color acquisition as well as capital allocation priorities.
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include 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; the current and potential future impact of the COVID-19 pandemic on our business, results of operations, financial position or cash flows including without any limitation, any supply chain and logistics issues; our ability to achieve the strategic and other objectives relating to the acquisition of Clariant's Color business, including any expected synergies; changes in polymer consumption growth rates and 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; an inability to achieve the anticipated financial benefit from initiatives related to acquisition and integration working capital reductions, cost reductions and employee productivity goals; our ability to continue to pay regular quarterly cash dividends, including at the increased rate, and the amounts and timing of any future dividends; information systems failures and cyberattacks; our ability to consummate and successfully integrate acquisitions; and 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.
https://www.avient.com/knowledge-base/article/what-s-difference-fillers-reinforcements?ind[]=21508
1BASF, “Kaolin” http://kaolin.basf.com/applications/ market/selected/plasticsandrubber
1Imerys Performance Minerals, Mica http://www.imerys-perfmins.com/mica/usa/mica.htm
2LKAB Minerals, MicaFort http://lkabminerals.com/Products/MicaFort
https://www.avient.com/sites/default/files/2021-06/avient-design-versaflex-wet-grip-tpe-fishing-tool-grip-case-study-one-pager.pdf
OUTDOOR GEAR
MAKER
F I S H I N G T O O L G R I P
• Aesthetically differentiate new products while optimizing
user functionality and safety
• Meet weatherability performance required by industry
standard UV and Salt Water Exposure tests
• Resist fish oils, sunscreens, and cleaners
• Comply with FDA food contact requirements
• Provided product development support from
concept to production, including visual brand
integration, part design, and material selection
• Customized grip design and TPE formulation to
retain grip and tactile feel in wet and oily
environments
• Expedited lead time with advanced design and 3D
modeling services to enable product launch at key
industry tradeshow
• Offered global supply continuity with local technical
and manufacturing support
Custom Versaflex™ Wet Grip TPE and Avient
Design Services
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/resource-center/services/avient-design
https://www.avient.com/sites/default/files/2022-02/Q4 2021 Avient Earnings Release_0.pdf
The Company will provide more details on its fourth quarter and full year results and 2022
projections on its webcast scheduled for 8:00 a.m.
Webcast Details
The webcast can be viewed live at avient.com/investors, or by clicking here: https://edge.media-
server.com/mmc/p/k7okojz2.
http://www.avient.com/investors
https://edge.media-server.com/mmc/p/k7okojz2
https://edge.media-server.com/mmc/p/k7okojz2
http://www.avient.com/investors
4
About Avient
Avient Corporation (NYSE: AVNT), with 2021 revenues of $4.8 billion, provides specialized and
sustainable material solutions that transform customer challenges into opportunities, bringing
new products to life for a better world.
https://www.avient.com/sites/default/files/2021-10/avnt-q3-2021-news-release.pdf
The company noted it will provide more details on its third quarter results and outlook during the
webcast scheduled for 8:00 a.m.
Webcast Details
The webcast can be viewed live at avient.com/investors, or by clicking here: https://edge.media-
server.com/mmc/p/yrq7mgm9.To participate in the audio-only portion of the call, dial 1-844-835-
7433 (domestic) or 1-914-495-8589 (international) and provide conference ID number 7899765.
http://www.avient.com/investors
https://edge.media-server.com/mmc/p/yrq7mgm9
https://edge.media-server.com/mmc/p/yrq7mgm9
http://www.avient.com/investors
3
Full Year Comparisons Pro Forma for Acquisition of Clariant’s Color Business
The company acquired Clariant’s color (“Clariant Color”) business on July 1, 2020 (the
“Acquisition Date”).