https://www.avient.com/sites/default/files/2024-12/AVNT Investor Day 2024 Presentation.pdf
They use words such as "will," “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“believe” and other words and terms of similar meaning in connection with any discussion of future operating or financial condition, performance and/or sales. items, 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;
• 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; and
• Other factors described in our Annual Report on Form 10-K for the year ended December 31, 2023, under Item 1A, “Risk Factors.”
$8B ADDRESSABLE MARKET
Cross
arms
Turbine blade
stiffeners
Utility
poles
Insulator
rods
Copyright © .
2024 50
Specialty Engineered Materials – end markets we serve
Healthcare Defense Energy
Industrial Telecom Transportation ConsumerPackaging
Building and
Copyright © .
2024 51
Our competitive advantage
Breadth and depth
of specialty solutions
Global footprint
with localized
customer intimacy
Manufacturing and
material formulation
expertise
Quality, regulatory,
and sustainability
• Engineered thermoplastics,
advanced elastomers,
additives, fibers, composites
• Unidirectional tapes, fabrics,
panels, pultrusions, shapes
• Operations in Americas,
Europe and Asia
• Source materials globally,
translate across regions
• Deep application knowledge
and design services
• Core competencies in fiber,
tape, composite lamination
and pultrusion processes
• Strong material science
expertise to address needs
• Strong regulatory and quality
management systems
• Industry accredited sites
• Recognized sustainability
ratings
Copyright © .
2024 52
Margin expansion opportunity
SEM margin expansion
+300bps
margin expansion
• Organic volume growth and
SG&A efficiencies from
prioritizing resources
• Increased sales in higher margin
growth platforms such as
composites and healthcare
Productivity • Yield improvement
• Raw material harmonization
• Supply chain optimization
53Copyright © .
https://www.avient.com/news/avient-adds-its-first-production-line-long-fiber-reinforced-thermoplastic-composites-asia-pacific
SHANGHAI, China – May 15, 2023 – Avient Corporation, a premier provider of specialized and sustainable material solutions and services, today announced the addition of its first production line for Complēt™ and OnForce™ long fiber reinforced thermoplastic composites in Asia.
Combined with engineering support and design for manufacturability services from Avient Design, our new production line offers local customers an efficient and agile setup that helps them accelerate speed to market and differentiate from their competition.”
For more information, visit https://www.avient.com.
https://www.avient.com/news/avient-featuring-colorants-and-additives-recycling-challenges-2023-plastics-recycling-conference
Avient experts will be on hand to share insights on technologies and services that address recycling challenges.
Avient will also be showcasing its newly launched PCR Color Prediction Service – a digital tool that supports post-consumer recycled (PCR) resin coloration.
For more information, visit https://www.avient.com.
https://www.avient.com/sites/default/files/2022-09/Avient Pro Forma Financial Information.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; including recessionary conditions
• The current and potential future impact of the COVID-19 pandemic on our business, results of operations, financial position or cash flows
• 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 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;
• The ability to obtain required regulatory approvals and otherwise consummate the proposed sales of the Distribution business; 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 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.
https://www.avient.com/sites/default/files/2023-07/Avient_CodeConduct_2023_Canada.pdf
La ligne d’assistance
est gérée par une entreprise de services professionnels
externe qui fournit ces services à de nombreuses
entreprises.
Assurer la sécurité de tous exige une vigilance constante
et un souci du détail.
http://Avient.com/sustainability
25
Q : Mon superviseur m’a demandé de suivre une
nouvelle procédure d’élimination des déchets,
mais je ne suis pas sûr qu’elle soit sécuritaire ou
même légale.
https://www.avient.com/knowledge-base/article/hit-comfort-zone-soft-touch-grips?ind[]=6596
These enhanced products are typically priced higher than standard designs.
In a big box store visit, the following price differential between these common household items was observed:
Price Comparison of Consumer Goods With & Without TPEs
https://www.avient.com/sites/default/files/2023-05/AVNT Q1 2023 Earnings Presentation.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 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.
GUIDANCE
7
14.8%
15.8%
Adjusted EBITDA Margin %
Better-than-expected margins
driven by:
• Resilient demand for
composites and sustainable
solutions which improved
mix of higher margin
applications
• Deceleration of raw material
inflation
• Cost reduction activities
Q1 EBITDA BRIDGE
8
$ millions
CAI:
Price / Mix 19)
Inflation (4)
SEM:
Price / Mix 6)
Inflation (4)
Net Price Benefit 17)
Wage and Energy Inflation (13)
Cost Reductions 8)
FX (6)
Q1 2023 Actual $134)
Adjusted
EBITDA
Q1 2022 Pro Forma $ 176)
Demand (48) • Weak demand
conditions in-line
with previous
expectations
• Pricing continues to
cover inflation of raw
materials, wages
and energy
U.S. & Canada
40%
38%
17%
Q1 2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
18%
23%
Building and
6%Telecommunications
END MARKET REVENUE
(1) Total company sales and adjusted EBITDA of $846M and $134M, respectively, include intercompany sales eliminations and corporate costs
$537M $91M
$310M $64M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$134M$846M
(1)
9
Q1 2023 SALES BY REGION
Yo Y C H A N G E ( E X C L .
Avient Specialty
Other Specialty /
2023E(%)
32
79
87
83 81
76
73
90
79 77 76
73
69
60
22
MULTIPLE EXPANSION
Avient Specialty
Other Specialty /
Note: Avient reflects 2023 adjusted EBITDA guidance of $530M and closing share price of $38.51.
https://www.avient.com/sites/default/files/2023-07/AVNT Q2 2023 Earnings Presentation%5B70%5D.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 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.
GUIDANCE
8
15.4%
15.9%
Adjusted EBITDA Margin %
Better-than-expected margins
driven by:
• Favorable mix - strong
demand for composite
applications
• Raw material deflation
Q2 EBITDA BRIDGE
9
($ millions)
CAI:
Price / Mix 7)
Deflation 11)
SEM:
Price / Mix 2)
Deflation 6)
Net Price Benefit 26)
Wage and Energy Inflation (10)
Cost Reductions 13)
FX (2)
Q2 2023 Actual $131)
Adjusted
EBITDA
Q2 2022 Pro Forma $ 172)
Demand (68) • Demand conditions vs.
expectations:
LATAM
• Net price benefit remains greater
than wage and energy inflation
• Clariant synergies and reduced
administrative costs
Q2 2023 SEQUENTIAL SALES BY REGION
Q 2 2 0 2 3 v s .
Avient reflects 2023 adjusted EBITDA guidance of $525M and estimated run-rate CAPEX of $110M.
2023E (%)
23
79
90
84 83
76
73
88
82
77
74 72
67
57
20
Avient Specialty
Other Specialty /
MULTIPLE EXPANSION
Note: Avient reflects 2023 adjusted EBITDA guidance of $525M and closing share price of $40.93.
https://www.avient.com/investor-center/news/avient-hold-first-quarter-2022-conference-call
The webcast can be viewed live at avient.com/investors, or by clicking here: https://edge.media-server.com/mmc/p/waapf8vc.
https://www.avient.com/investor-center/news/avient-hold-third-quarter-2021-conference-call
The webcast can be viewed live at avient.com/investors, or by clicking here: https://edge.media-server.com/mmc/p/yrq7mgm9.