https://www.avient.com/sites/default/files/2023-06/AVNT June IR Conferences w_Non GAAP Recs.pdf
National Defense
budget of $842 billion submitted to Congress
in Q1 2023
• European NATO members annual defense
spend expected to increase by up to 20%
Dyneema® is the world’s strongest fiber™
One of the highest strength to weight
ratios of any material on Earth
Direct relationships with industry leading
armor manufacturers
Resistant to most chemicals, UV, and
moisture to handle any environment
Avient Confidential 18
DEFENSE
Source: US Department of Defense, defense.gov, NATO18
Source:
TRANSPORTATION
• Increased EPA regulations requiring
improved fuel efficiency, enabled in part by
lower-weight vehicles
• Automakers preparing for 2/3 of U.S.
vehicles to be 100% electric by 2032
Lightweight panels that establish both
strength and stiffness resulting in
decreased energy usage, lower emissions
Long-lasting Color applications to resist
UV exposure, temperature fluctuations
and exceed the stylistic requirements of
global automakers
19
$130
$530
$0.60
$2.40
2023 GUIDANCE
20
Sales Adjusted EBITDA
$845
$3,400
(in millions) (in millions)
CASH FLOW / LEVERAGE
21
• Maintaining free cash flow
and leverage guidance from
February earnings call
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Restructuring actions to
streamline operations and
improve profitability,
primarily in Europe
($ millions) 2023E
Cash Flow from Operating Activities 350$
Less:
Run-Rate CapEx (110)
CapEx for IT System Upgrade (25)
CapEx for Restructuring (15)
Total CapEx (150)
Free Cash Flow 200$
Adjusted EBITDA 530$
Net Debt / Adjusted EBITDA 2.9x
LONG-TERM REVENUE GROWTH DRIVERS
Growth Drivers
Long-Term
Growth Rate
Sustainable Solutions 8–12%
Healthcare 8–10%
Composites 10%
Asia / LATAM 5%
Other (GDP growth) 2–3%
Avient 6.5%
22
Sustainable
Solutions
32%
Asia / LATAM
Composites
Other (GDP
Growth)
39%
• Virtual presentation to be held
September 20, 2023
• The company will be
conducting an investor-focused
presentation around our
sustainability solutions portfolio
Avient Confidential 23
SUSTAINABILITY
INVESTOR DAY
23
$340M
$405M
$455M
$550M
$790M
$915M
2016 2017 2018 2019 2020PF** 2021 2022PF***
SUSTAINABILITY FOR A BETTER TOMORROW
Revenue From Sustainable Solutions* 2016-2022
($ in millions)
Organic Future Growth Revenue Assumptions From Sustainable Solutions: 8 - 12%
24
*Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”)
**2020 is Pro Forma to include full year of the Clariant Color business
***2022 is Pro Forma for the acquisition of Avient Protective Materials and the divestiture of Distribution
$1,175M
Lightweighting
Eco-Conscious
Recycle Solutions
VOC Reduction
Sustainable Infrastructure
Human Health & Safety
Reduced Energy Use
Bio-polymers
SUSTAINABILITY NEEDS BY MARKET
B&C
• Eco-Conscious
• Carbon footprint
• Resource
conservation
• Carbon footprint
• Bio based content
• Eco-Conscious
Automotive
• Light weighting
• Recycled Content
• VOC reduction
• Recycle Solutions
• Carbon Footprint
Packaging
• Recycle Solutions
• Food waste
reduction
Common Theme: CO2 Emission Goals
Increasing Single-Use Plastic Regulation
25
INVESTING
IN INNOVATION
S U S T A I N A B I L I T Y P O R T F O L I O
26
AP P EN D IX
29
RAW MATERIAL 2022 ANNUAL PURCHASES
Performance
Additives
Pigments
12%
TiO2
Dyestuffs
2%
Polyethylene
Nylon
Polypropylene
Styrenic Block
Copolymer
Other Raw
Materials
33%
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
• Cost inflation
decelerating,
particularly for
hydrocarbon-based
raw materials
2022 pro forma results for the acquisition of Avient Protective Materials
SEGMENT DATA
U.S. & Canada
37%
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
Building and
END MARKET REVENUE
$2,355M $402M
$1,300M $272M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$592M$3,653M
(1)
9%
31
(1) Total company sales and adjusted EBITDA of $3,653M and $592M, respectively, include intercompany sales eliminations and corporate costs
C O L O R , A D D I T I V E S & I N K S
2022 REVENUE | $2 .4 B ILL ION
34%
38%
END MARKET REGION
32
34%
21%
Building &
1% Energy
2%
S P E C I A LT Y E N G I N E E R E D M AT E R I A L S
2022 PRO FORMA REVENUE | $1 .3 B ILL ION
END MARKET
52%
35%
REGION
33
19%
8%Industrial
9% Defense
Building &
32%
27%
14%
Building &
3%
1% Defense
1%
(18% of sales)
9%
2022 PROFORMA AVIENT REGIONAL SALES
BY END MARKET
27%
14%
17%
Building &
(37% of sales)Transportation
12%
Building &
US &
Canada
(40% of sales)
56%
23%
Building &
1%
LATAM
(5% of sales)
3%
34
PEER COMPARISONS
AVIENT IS ASSET LIGHT
Capex / Revenue
2023E (%)
Avient Specialty
Other Specialty /
Note: Avient reflects 2023 estimated revenue of $3,400 and estimated run-rate CAPEX of $110M.
36
4 4
4
6
8
9
FREE CASH FLOW CONVERSION
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/industries/transportation/automotive/automotive-interiors
Compounded PP
Recycled content TPEs for automotive interiors
35-45% post-consumer recycled (PCR) content
https://www.avient.com/sites/default/files/2023-06/AVIENT_TPEs and LSR eBook.pdf
When considering sustainable content TPEs, recycled
content formulations have more limitations based on the comingled nature
of recycled raw materials.
TPEs, however, have an advantage when it comes to recycling.
For example, the use of
sustainable content such as bio-based or recycled sources can lower a PCF.
https://www.avient.com/resource-center?document_type=221&document_subtype=0&industry=0&product_family=0&product_name=0&op=FILTER RESULTS&form_id=resource_filter_form&page=2
Learn more about our CycleWorks Innovation Center and it's dedication to providing recycling solutions
New black colorants from Avient support circular economy and turn former waste into recyclable packaging
Cesa™ Nox A4R Additives for Recycling - Polyolefin Antioxidant for Enhanced Recycling (Chinese)
https://www.avient.com/news/avient-present-broad-array-innovative-and-sustainable-materials-solutions-chinaplas-2025
Solutions to help reduce carbon footprint by lightweighting using recycled materials in injection molded and extruded applications for automotive and consumer goods industries, such as Hydrocerol™ Chemical Foaming Agents developed to reduce material consumption, part weight, and cycle times while maintaining excellent surface finish and eliminating sink marks, and can also serve as nucleating additives in direct gassing foam extrusion processes
Oxygen scavengers that can enable recycling such as ColorMatrix™ Amosorb™ 4020L Shelf Life Extender for PET and recycled PET (rPET) resins can extend the shelf life of food and beverage products in rigid packaging without adverse impact on recycling
reSound™ REC Recycled Content Thermoplastic Elastomers (TPEs): based on post-consumer recycle (PCR) for reduced carbon footprint
https://www.avient.com/resource-center?document_subtype=0&document_type=221&form_id=resource_filter_form&industry=0&op=FILTER RESULTS&product_family=0&product_name=0&page=2
Learn more about our CycleWorks Innovation Center and it's dedication to providing recycling solutions
New black colorants from Avient support circular economy and turn former waste into recyclable packaging
Cesa™ Nox A4R Additives for Recycling - Polyolefin Antioxidant for Enhanced Recycling (Chinese)
https://www.avient.com/products/polymer-additives/barrier-and-scavenger-additives/colormatrix-triple-acetaldehyde-scavenger-pet
PET clarity maintained during recycling
Gravi-Tech™ REC Recycled Formulations
Nymax™ REC Recycled Nylon Formulations
https://www.avient.com/products/long-fiber-technology/long-fiber-technologies
Post-consumer recycled and post-industrial recycled resins up-engineered with long fiber reinforcement.
Gravi-Tech™ REC Recycled Formulations
Nymax™ REC Recycled Nylon Formulations
https://www.avient.com/industries/packaging
Ensure Sustainable Solutions: Plastic packaging is one of the 20th century’s most important inventions: it’s highly recyclable, consumes less water and energy than paper and other materials, and is a safe way to deliver products while preserving their quality.
We offer products that are specially designed to increase plastic recycling capabilities.
Enhancing rPET Quality and Safety
Tackling degradation and additive buildup in the rPET recycling process.
https://www.avient.com/news/avient-announces-new-eco-conscious-flexible-option-liquid-metering
The box and inner liner are recyclable and compact, making it efficient to transport, handle, store and dispose of easily.
Unique technologies that improve the recyclability of products and enable recycled content to be incorporated, thus advancing a more circular economy