https://www.avient.com/sites/default/files/2021-12/AVNT 2021 Investor Day_0.pdf
Microsoft PowerPoint - AVNT Investor Day V40 (Print)
(NYSE: AVNT)
Shaping a
Sustainable
Future
December 9, 2021
Agenda
8:00 WELCOME BREAKFAST
9:00 WE ARE AVIENT: Bob Patterson
9:15 BETTER TOGETHER AND CUSTOMER EXPERIENCE: Norbert Merklein
9:45 LONG-TERM ORGANIC GROWTH DRIVERS:
Sustainable Solutions: Michael Garratt and Walter Ripple
Healthcare: Cathy Dodd
10:45 BREAK
11:00 Composites: Chris Pederson and Matt Reinhardt
Growth in Asia and Latin America: Woon Keat Moh
INNOVATION: Where Are We Going Next?
Fiber Technology
Avient Corporation 107
We are breaking ground on a new innovation center adjacent to our manufacturing facility in Pune
• Focused on investments in both R&D resource
additions and capital investments
• Platform development in new disruptive
markets to support core business and strategy
ISHA
Avient Manufacturing
Site, Pune, India
India Innovation Center
Innovative Sustainable Holistic Accelerator (ISHA)
Avient Corporation 108
2021E 2022E 2023E 2024E 2025E
$1.1B
$1.6B
Growth Through Innovation
Avient Corporation 109
Total CAI and SEMWorld-Class Vitality Index
% of revenue from products launched last five years
35%
Revenue from new products
Summary
Jamie Beggs
Avient Corporation 110
$442
$457
$580
$1.74
$1.93
$3.00
Full Year 2019 – 2021 Organic Growth
(TOTAL COMPANY)
Sales Adjusted EBITDA
$3,981
$3,783
$4,750
+ 19%
Adjusted EPS
(1) Financial information is pro forma to include a full year of Clariant Color acquisition
(in millions) (in millions)
(1)(1)
+ 31% + 72%
Avient Corporation 111
2021 Sales Growth Summary
Key Growth Drivers Segments
(1) Financial information is pro forma to include a full year of Clariant Color business acquisition
Sales
Growth
2020 Proforma 3,783$
Sustainable Solutions 140 18%
Healthcare 150 31%
Composites 44 33%
Growth in Asia / LATAM 103 21%
Other 530 28%
2021 Estimated 4,750$ 26%
Sales
Growth
2020 Proforma 3,783$
Color, Additives & Inks 330 16%
Specialty Engineered Materials 195 28%
Distribution 495 45%
Corporate & Eliminations (53)
2021 Estimated 4,750$ 26%
Avient Corporation 112
Year–to–date EBITDA Bridge
2020 September YTD $ 339
Demand 132
EBITDA($ millions)
(1) Financial information is pro forma to include a full year of Clariant Color business acquisition
CAI:
Price / Mix 96
Inflation (74)
SEM:
Price / Mix 61
Inflation (45)
Distribution:
Price / Mix 204
Inflation (195)
Net Price Benefit 47
Supply Chain Disruptions (38)
COVID Response Applications (11)
Synergies 34
Incentives, Travel, FX, Other (48)
2021 September YTD $ 455
• Demand driven by growth in
sustainable solutions, healthcare
and consumer applications
• Price increases have more than
covered raw material and freight
inflation impacts of $300M year-
to-date compared to 2020
• Synergy capture on pace to
achieve $52M in annual savings
in 2021
Avient Corporation 113
$1,110
$3,000
Return on Invested Capital
Avient Corporation 114
Invested Capital
2006 Current
11%
Cost of Capital
ROIC (after-tax)
0.1 0.1
0.2
0.5
0.6
0.7
0.8
0.9
0.9
1.0 1.0
11 12 13 14 15 16 17 18 19 20 21
44%
98%
YTD 5 - YR 10 - YR
0.16
0.20
0.26
0.34
0.42
0.50
0.58
0.72
0.79 0.81
0.85
0.95
11 12 13 14 15 16 17 18 19 20 21 22
2.1x
Q4 NET LEVERAGE
~$1Bn
REPURCHASED
OVER LAST 10 YEARS
~$450MM
PAID OVER LAST 11 YEARS
Creating Value for Shareholders
Avient Corporation 115
Share Performance Dividends Share Repurchases Deleveraging
3.5x
2.1x
Growing Dividend Cumulative Buybacks Net Leverage
$B
$
p
r
sh
ar
Total Shareholder Return
~$4.3Bn
MARKET CAP INCREASE
OVER LAST 10 YEARS
(1) Share performance includes reinvested dividends and is as of December 2, 2021
(2) Financial information is pro forma to include a full year of Clariant Color acquisition
(2)
528%
Shaping a Sustainable Future…
Avient Corporation 116
SUSTAINABLE SOLUTIONS
$340
$930
2016 2021E
Brand Owner Commitment
10 – 50
Percent of recycled
plastic used
13% organic CAGR
Avient Corporation 117
8-12%
HEALTHCARE
$225
$685
17,645
29,445
9% organic CAGR
Source: BCC Research, Nov. 2020
11% CAGR
Market for Medical Plastics
(millions of LBs)
Figures above include relevant Sustainable Solutions sales
Avient Corporation 118
8-10%
COMPOSITES
$74
$260
2017 2021E
11% organic CAGR
Figures above include relevant Sustainable Solutions sales
Avient Corporation 119
5G Capacity and Demand
Source: Mobile Experts: 5G Millimeter Wave 2019:
ns
e
an
C
ap
ac
ity
(
o.
10% CAGR
ASIA AND LATIN AMERICA
$210
$1,150
Weighted Avg.
GDP Growth Avient Historic Growth Future Growth Assumptions
Global Avient:
2.7%
Asia / LATAM:
5.0%
Source: International Monetary Fund, World
Economic Outlook Database (April 2021)
12% organic CAGR
Figures above include relevant sustainable solutions, healthcare and composites sales
Avient Corporation 120
8-10%
(5% CAGR excluding
Sustainable Solutions)
Summary: Long-term Revenue Growth Drivers
Avient Corporation 121
2021 Sales
Estimate
(Drivers)
Overlap
2021 Sales
Estimate
Annual
Growth
Sustainable Solutions 930 - 930 8–12%
Healthcare 685 (45) 640 8–10%
Composites 260 (80) 180 10%
Asia / LATAM 1,150 (310) 840 5%
Other (GDP growth) 2,160 2–3%
Avient $4,750 6.5%
EBITDA Margin Expansion Goals
CAI
SEM
• Continued portfolio transformation to high-
growth end markets and sustainable solutions
• Clariant Color synergy realization
• Investments in composites and outdoor high
performance applications drive growth and
mix improvements
Avient Corporation 122
17.0%
1.6%
1.0% 0.4%
2021E Synergies Sustainable
Healthcare Goal
17.6% 0.9%
1.1%
0.4%
2021E Composites Sustainable
Healthcare Goal
Sustainable Path to Double Digit Earnings Growth
Avient Corporation 123
Long-Term Sales
Growth Rate
Sustainable Solutions 8–12%
Healthcare 8–10%
Composites 10%
Asia / LATAM 5%
Other (GDP growth) 2–3%
Avient 6.5%
10%+
Adjusted EBITDA growth
15%+
Adjusted EPS growth
An Investment in
Sustainable Growth
Bob Patterson
Avient Corporation 124
M&A Brings Avient New Technologies
Avient Corporation 125
Technology Acquisition Technology Acquisition
Thermoplastic
Elastomers
Liquid Color Concentrates
& Additives
Continuous Fiber
Thermoplastic Composites
Silicone Colorants &
Formulations
High-temperature Polymers
& Fluoropolymers
Long Fiber Reinforced (LFT)
Thermoplastic Composites
Fiber Solutions
Water-based Inks
Fiber & Healthcare Expertise,
Liquid Additive Processing Aids, FR Additives,
Recycling Innovations & More
$133
$205
Clariant Color: Transformational Acquisition
126
Clariant Color EBITDA Growth
Purchase Price Multiple
10.8x
7.0x
6.0x
2019PF 2021E 2021E w/ Full
• 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
• On-track to realize $52 million of expected synergies in 2021
• Acquisition completed on July 1, 2020 for $1.45 billion.
