https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Earnings Presentation_For_Website_w_non-GAAP_5_6_1.pdf
For the same reasons, Avient is unable to address the probable significance of the unavailable information.
2
O P E N I N G RE MARK S
4
REGIONAL DEMAND TRENDS-TOTAL COMPANY
Q 1 S A L E S V S P Y ( E X C L U D I N G F X )
4
+2%
-6%
Flat
+2%
Avient ex.
Q1 2023
(TOTAL COMPANY)
$846 $829
$134
$143
17.3%
(in millions)
$0.63
$0.76
Adjusted EPS
(in millions)
+ 7% + 21%
Sales Adjusted EBITDA Adjusted EPS
6
- 2%
15.8%
+150 bps
Q1 2024 SEGMENT PERFORMANCE
(COLORS, ADDITIVES & INKS)
$537
$515
$91
$97
18.8%
(in millions) (in millions)
+ 7%
7
- 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%
8
+ 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)
9
$ 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 I DAN 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
11
Q2 2024: Adjusted EPS of $0.71
CE O “ TO P O F MI N D”
FO CU S ARE AS
AREAS OF FOCUS
13
+7%
Drive Profitable Organic
Top-Line Growth with
Margin Expansion
Amplify Innovation Build Leadership & Talent
Pipeline
AP P E N DI X
16
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%
18
(1) Total company sales and adjusted EBITDA of $3,143M and $502M, respectively, include intercompany sales eliminations and corporate costs
2023 REVENUE | $2 .0 BILLION
34%
37%
21%
END MARKET REGION
19
34%
21%
15%
Building &
1% Energy
COLOR, ADDITIVES & INKS
2023 REVENUE | $1 .1 BILLION
52%
35%
20
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)
21
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 $ 49.4 $ 0.54 $ 20.8 $ 0.23
Special items, after-tax 5.5 0.06 22.3 0.24
Amortization expense, after-tax 14.9 0.16 15.1 0.16
Adjusted net income / EPS $ 69.8 $ 0.76 $ 58.2 $ 0.63
Three Months Ended
Reconciliation to EBITDA and Adjusted EBITDA: 2024 2023
Net income from continuing operations – GAAP $ 49.7 $ 21.3
Income tax expense 16.8 7.7
Interest expense, net 26.6 28.8
Depreciation and amortization 44.3 50.5
EBITDA from continuing operations 137.4 108.3
Special items, before tax 6.2 27.3
Depreciation and amortization included in special items (0.5) (1.8)
Adjusted EBITDA $ 143.1 $ 133.8
Adjusted EBITDA as a percent of sales 17.3 % 15.8 %
1
2024 2023
Sales:
Color, Additives and Inks $ 515.3 $ 537.0
Specialty Engineered Materials 314.4 309.7
Corporate (0.7) (1.0)
Sales $ 829.0 $ 845.7
Operating income:
Color, Additives and Inks $ 74.8 $ 65.6
Specialty Engineered Materials 53.4 43.1
Corporate (34.2) (51.6)
Operating income $ 94.0 $ 57.1
Depreciation & amortization:
Color, Additives and Inks $ 21.9 $ 25.8
Specialty Engineered Materials 19.6 21.2
Corporate 2.8 3.5
Depreciation & amortization $ 44.3 $ 50.5
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 96.7 $ 91.4
Specialty Engineered Materials 73.0 64.3
Corporate (31.4) (48.1)
Other (expense) income, net (0.9) 0.7
EBITDA from continuing operations 137.4 108.3
Special items, before tax 6.2 27.3
Depreciation and amortization included in special items (0.5) (1.8)
Adjusted EBITDA $ 143.1 $ 133.8
Adjusted EBITDA as a percent of sales:
Color, Additives and Inks 18.8 % 17.0 %
Specialty Engineered Materials 23.2 % 20.8 %
2
Year Ended
December 31, 2023
Sales:
Color, Additives and Inks $ 2,007.4
Specialty Engineered Materials 1,138.2
Corporate (2.8)
Sales $ 3,142.8
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 and amortization included in special items (1.9)
Adjusted EBITDA $ 501.8
3
AVNT Q1 2024 Earnings Presentation_For_Website_w_non-GAAP.pdf
Avient corporation�first quarter 2024 results and 2024 financial guidance
DISCLAIMER
Slide Number 3
Regional demand trends-total company�Q1 Sales vs PY (Excluding FX)
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
Slide Number 15
Slide Number 16
Slide Number 17
2023 segment, end market and Geography
Color, Additives & Inks
Specialty Engineered Materials
Slide Number 21
IR Deck - AVNT-2024.03.31 5.06 11AM v2 (002).pdf
Attachment
https://www.avient.com/resources/safety-data-sheets?page=5532
PA6 G30 H black UV 70
PP FR 8-6 LMS-1000
https://www.avient.com/industries/consumer/consumer-discretionary/home-household/consumer-electronic-accessories
Custom Nymax™ PA6 formulation provides toughness and chemical resistance for a more protective phone case
https://www.avient.com/industries/consumer/consumer-discretionary/outdoor-recreation/powersports
Artisan™ high-gloss, pre-colored nylon (PA6) formulation provided paint replacement solution to meet brand needs
https://www.avient.com/sites/default/files/2022-07/Avient 2021 Sustainability Report 7-26-22.pdf
Randburg, South Africa 6.
Elyria, Ohio 6.
The Solution
Avient developed a new technology suite that uses specialty engineered polyketone (PK)
thermoplastics and helps our customers meet their goals to lower the carbon footprint of
their products versus traditional materials, like PA66 and PA6.
https://www.avient.com/sites/default/files/resources/US_Norwalk_ISO17025_2019Exp.pdf
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https://www.avient.com/sites/default/files/2021-02/ppsu-masterbatch-product-bulletin_0.pdf
660.00 Black 6% Black 6C
660.01 Brown 6% 7582C
660.02 Red 8% 7620C
660.03 Orange 6% 1505C
660.04 Yellow 6% 124C
660.05 Green 6% 348C
660.06 Blue 6% 660C
660.07 Violet 15% 7664C
660.08 Grey 6% Cool Gray 8C
660.09 White 6% RAL9010
PSU RESINS
Product Code Color RAL No.*
S837.0 Black 9005
S837.1 Brown 8011
S837.2 Red 3002
S837.3 Orange 2004
S837.4 Light Yellow 1016
S837.5 Green 6032
S837.6 Blue 5015
S837.7 Violet 4005
S837.8 Grey 7037
S837.9 White 9016
PES RESINS
Copyright © 2021, Avient Corporation.
https://www.avient.com/sites/default/files/2021-07/moisture-resistant-nylon-lft-technical-bulletin.pdf
Complēt™ Moisture Resistant Nylons
Environmentally Stabilized Nylon 6 and 6/6 Long Fiber Composites
Standard nylon 6 and 6/6 materials are a widely
deployed class of entry-level engineering polymers
that readily accept fiber reinforcement to provide a
good mix of mechanical properties at an economical
price point.
Our long fiber reinforced Complēt™ moisture
resistant nylons, in PA 6 and 6/6 matrices, moderate
performance degradation using environmental
stabilization.
A Complēt moisture resistant
nylon 6/6 long glass fiber
composite performed
similarly to a specialty
PA 6/12 material at time
intervals equivalent to
short-term water exposure
and noticeably better than a
standard PA 6/6 formulation.
https://www.avient.com/sites/default/files/2024-01/Global Standard Response_Dec 2023.pdf
We thank you for your understanding, and we look forward to serving your needs.
3
Table of contents
A Message from our Global Quality
Manager ...............................................................2
Avient Corporation: Overview ............................4
Avient Policy for Customer Audits ......................5
Management Responsibility ...............................6
Product Liability Insurance .............................6
Ethics - Code of Conduct.................................6
Modern Slavery Statement.............................6
Conflict Mineral Policy....................................6
Technical Data Sheets.....................................6
Safety Data Sheets..........................................6
Regulatory Requests and Certificates
(FDA certificate, Absence declaration,
REACH, SDS) ........................................6
Safety Performance ........................................6
Environmental Performance...........................6
Energy Management ......................................6
Business Continuation Plan.............................6
Preventive - Predictive Maintenance..............6
Financial Report..............................................6
Quality Management..........................................7
3rd Party Certification......................................7
Complaint Handling ........................................7
Continuous Improvement...............................7
Traceability .....................................................7
Record Retention............................................7
IT Security.........................................................8
Firewall .........................................................8
Critical Data ..................................................8
IT Disaster Recovery .....................................8
IT Systems of Use Policy ...............................8
Annex 1 - Special dispositions related to ISO
13485 certification for Mevopur .......................9
Change control .............................................9
Validation .....................................................9
Control of documents and records ...............9
Supplier approval and supplier evaluation ...9
Traceability ...................................................9
Material management ..................................9
Release of finished products.........................9
Control of Non-conforming products,
complaints handling, recall and CAPA..........9
Annex 2 – special dispositions related to ISO
22000 certification............................................10
Change..........................................................10
HACCP ..........................................................10
Control of documents and records ...............10
Material management ..................................10
Supplier approval and supplier evaluation ...10
Traceability ...................................................10
Release of finished products.........................10
Control of Non-conforming products,
complaints handling, recall and CAPA..........10
4
Avient Corporation: Overview
The Avient website is your home base for information about the company:
https://www.avient.com/
To find our facility locations:
https://www.avient.com/contact/global-directory-and-contacts
For more information about our management systems certifications, including ISO, go to:
Avient Governance (corporate policies and the Avient Code of Conduct):
https://www.avient.com/investors/governance
Financial reports:
https://www.avient.com/investors
Avient Sustainability Report:
https://www.avient.com/company/sustainability
https://www.avient.com/
https://www.avient.com/contact/global-directory-and-contacts
https://www.avient.com/investors/governance
https://www.avient.com/investors
https://www.avient.com/company/sustainability
5
Avient Policy for Customer Audits
Avient may permit audits of facilities, subject to:
Advanced notice and an audit agenda provided at least thirty (30) days in
advance or as agreed by the Avient location to be audited for a routine audit
Audits are at the discretion of Avient and may be limited in content/scope.
6
Management Responsibility
The following information describes minimum requirements in place at all ISO 9001 certified manufacturing
facilities identified at https://www.avient.com/company/sustainability/environmental/global-iso-certificate-library
Some additional certified management systems are described in the annex to this document.
https://www.avient.com/sites/default/files/2025-01/Maxxam NHFR Non-Halogen Flame Retardant Polyolefins - Product Selector Guide EMEA.pdf
Product Name H15 H XF
V2 70
MF5200-5004
NHFR V2 HS
MF5200-5005
NHFR V2 RS H
MF5200-5006
NHFR V2 RS HS
H6 H XF
H20 H XF
H6 T/05 H XF
H6 T/10 H XF
H6 T/20 XF
H6 GF/10 XF
V070
H8 GF/20 XF
H12 GF/25 H
XF V0 70
H6 GF/30 XF
PE H XF
Polymer PP PE
Flammability V2 V2 V2 V2 V0 V0 V0 V0 V0 V0 V0 V0 V0 V0
UL Listed No No No No No No No No No No No No No Yes
Reinforcement Unfilled Unfilled Talc Talc Unfilled Unfilled Talc Talc Talc Glass Filled Glass Filled Glass Filled Glass Filled Unfilled
Density (g/cm3) 1.03 0.9 0.98 1.05 1.07 1.06 1.08 1.15 1.16 1.11 1.25 1.32 1.35 1
MFI,
230°C/2.16 kg 13 20 23 20 5.5 20 6 6 6 6 7 12 5.5
E-Modulus (Tensile
Modulus - Mpa) 1900 1500 2400 2600 2500 2500 2500 3000 3000 4300 6500 7500 8250 2000
Tensile Strength
(Mpa) 25 30 32 30 26 20 26 25 23 55 70 75 78 20
Elongation (%)
Product Name C10 XF
V2 70
C10 H XF
C10 H XF
V0 T
C10 T/10 XF
C10 T/20 XF
C6 GF/30 H XF
C2 GF/20 XF
C6 GF30 H UV XF
V0 70 GREY X2 70 GREY X3 70
Resin Chemistry COPO HOMO + COPO
Polymer PP
Flammability V2 V0 V0 V0 V0 V0 V0 V0 V0 V0
UL Listed No No No No No Yes No No No No
Reinforcement Unfilled Unfilled Unfilled Talc Talc Glass Filled Glass Filled Glass Filled Glass Filled Glass Filled
Density (g/cm3) 1.01 1.06 1.09 1.16 1.28 1.35 1.23 1.38 1.24 1.25
MFI, 230°C/2.16 kg 7 10 10 9 10 4.5 2.5 4.5 4 0
E-Modulus (Tensile
Modulus - Mpa) 1800 1500 1300 1500 2400 8000 5000 8000 5250 6000
Tensile Strength
(Mpa) 18 15 20 15 15 60 45 60 40 45
Tensile Strain at Break
(ISO 527-2) (%) 63