https://www.avient.com/sites/default/files/2023-05/AVNT Q1 2023 Earnings Presentation.pdf
FX -11%
FX -3%
Total Avient -14%
YoY Comparison against 2022 pro forma results
• Aging infrastructure driving need for greater
technological advancements and upgrades
• Increased focus on strength and capacity
of electrical grid plays into further adoption
of composites into the market
UV, weather-resistance, customized
capabilities
Best-in-class customer responsiveness
Local high-quality manufacturing,
unparalleled breadth of portfolio
Expanding position in insulators, utility
poles, crossarms, and wind energy
Avient Confidential 11
ENERGY
11
• Fiber-optic investments from AT&T, Corning,
Commscope continue to drive industry toward
innovation
• $42B BEAD program in Infrastructure Bill to
increase cable deployments; well-positioned to
capitalize on “Made in America” requirement and
“last mile” buildout
Flame retardance, weather-resistance enables
faster, safer, more reliable connections
Local manufacturing, unparalleled breadth of
portfolio
Expanding position in insulation for wire
jacketing, 5G buildout
TELECOMMUNICATIONS
Source: U.S.
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 13
DEFENSE
Source: US Department of Defense, defense.gov, NATO13
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
14
$130
$530
$0.60
$2.40
2023 GUIDANCE
15
Sales Adjusted EBITDA
$845
$3,400
Adjusted EPS
(in millions) (in millions)
CASH FLOW / LEVERAGE
16
• Maintaining free cash flow
and leverage guidance from
February earnings call
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Restructuring actions to
streamline operations and
improve profitability,
primarily in Europe
($ 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%
17
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 18
SUSTAINABILITY
INVESTOR DAY
18
$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%
19
*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
20
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
21
AP P EN D IX
24
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
40%
37%
18%
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
24%
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%
26
(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
27
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
28
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
24%
12%
Building &
US &
Canada
(40% of sales)
56%
23%
Building &
1%
LATAM
(5% of sales)
3%
29
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.
31
4 4
5 5 5
6
7
9
FREE CASH FLOW CONVERSION
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/industries/healthcare/medical-devices-equipment/rehabilitation-equipment
Cesa™ Scratch & Mar Resistance Additives
Cesa™ WithStand™ Antimicrobial Additives
Cesa™ Scratch and Mar - Product Bulletin
https://www.avient.com/industries/consumer/consumer-discretionary/home-household/consumer-electronic-accessories
Cesa™ Percept™ Authentication Technologies
Cesa™ WithStand™ Antimicrobial Additives
Cesa™ Withstand™ Antimicrobial Additives
https://www.avient.com/industries/consumer/consumer-discretionary/outdoor-recreation/shooting-sports
Cesa™ Laser Additives
Cesa™ Scratch & Mar Resistance Additives
Cesa™ Scratch and Mar - Product Bulletin
https://www.avient.com/products/polymer-colorants/solid-color-masterbatches/oncolor-ul-94-colorants
Cesa™ Laser Additives
Cesa™ Laser Additives allow manufacturers to optimize the use of laser technology to create markings or assemble plastic parts.
https://www.avient.com/products/polymer-colorants/color-additive-combination-masterbatches/smartbatch-fabric-fx
Cesa™ Percept™ Authentication Technologies
Cesa™ Clean Additives
https://www.avient.com/news/plastpol-2024-include-sustainable-technologies-avient
The Additives for Recycling (A4R) portfolio, including Cesa™ Unify™ A4R and Cesa™ Nox A4R – with formulations that play a crucial role in aiding compatibilization and protecting post-consumer polyolefins against oxidation, which can lead to defects like black spots, gels, and discoloration.
https://www.avient.com/news/avient-emphasizes-commitment-sustainability-plastics-recycling-latam-conference
Avient showcases polymer recycling solutions including Cesa™ Nox A4R Additives for Enhanced Recycling and ColorMatrix™ SmartHeat™ liquid dispersion process aids that can improve the recyclability of PET bottles at the Plastics Recycling LATAM Conference in Mexico City
This includes Cesa™ Nox A4R Additives for Enhanced Recycling, Avient’s Color Prediction Service, which digitally illustrates the possibilities of post-consumer recycled (PCR) content in solutions, and ColorMatrix™ SmartHeat™ liquid dispersion process aids, which can improve the recyclability of polyethylene terephthalate (PET) bottles.
https://www.avient.com/products/polymer-additives/uv-and-light-blocking-additives/colormatrix-lactra-four-one-zero
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ColorMatrix™ Lactra™ Four, One, Zero
Additive Solutions for Biopolymers: Cesa™ Bio
https://www.avient.com/knowledge-base/article/material-solutions-expanding-ev-charging-infrastructure?ind[]=6601
Cesa™ Flame Retardant Additives are available in standard or custom solutions that will comply with necessary technical and regulatory requirements.
Charging stations can be protected from harsh outdoor environments and daily wear-and-tear by using various solutions, including UV protection, chemical resistance, scratch and mar resistance, or impact modification.