https://www.avient.com/sites/default/files/2020-10/excelite-im-product-bulletin-americas-1.pdf
PP, PE,
PS, PVC No Good
Foam PP
Better, larger cells with lower cell
density in standard IM processes;
suitable for cell nucleation in
structural foam processing
PP, PE,
PS, PVC Yes Better
FA-110
Best cell structure with higher cell
density; provides better structural
integrity and lower density in
standard IM processes
PP, PE,
PS, PVC Yes Best
KEY CHARACTERISTICS
Excelite IM formulations provide
injection molders with:
• Material density and weight reduction
• High concentration of active CFA
• Improved distribution of CFA into
polymer matrix
• High cell density with tight cell structure
• Control over consistency and accuracy
• Reduced sink marks
• Ability to improve flow of material
• Cycle time reduction
• Improved dimensional stability
• Improved thermal insulation
EXCELITE IM – PRODUCT FORMULATIONS
www.avient.com
Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2022-05/AVNT May IR Presentation w Non GAAP Recs.pdf
FX)
$429
$490
$3.05
$3.50
FY 2022 PERFORMANCE
16
$4,819
$5,100
+ 6%
(+ 8% excluding FX)
Adjusted EPS
+ 14%
(+ 17% excluding FX)
+ 15%
(+ 18% excluding FX)
(in millions) (in millions)
Sales Adjusted Operating Income
17
CASH FLOW / LEVERAGE
($ millions) 2022E
Cash Flow from Operating Activities 400$
Less:
Run-Rate CapEx (90)
CapEx for Clariant Integration (10)
CapEx for IT System Upgrade (15)
Total CapEx (115)
Free Cash Flow 285$
Adjusted EBITDA 635$
Net Debt / Adjusted EBITDA 1.7x
DYN E E MA ACQ U I S I T I O N
19
15x stronger than steel
Reduces weight by 30% vs. other solutions
Well-maintained global asset base poised to serve growing demand
• Purchase price of $1.48B represents 11.4x multiple of
2022 EBITDA
• Acquisition will expand Avient’s composites and fiber
portfolio with Dyneema®, the World’s Strongest Fiber™
• $415M sales and 30%+ EBITDA margins; Immediately
accretive to pro forma 2022 EPS, adding $0.35
• 1,300 patents globally, ~50% of sales patent protected
• 1,000+ employees across global production network and
dedicated technology centers
• Composites platform will increase from $261M to $680M in
revenue and from $49M to $180M in EBITDA Indicates Dyneema® location
$175M
(42%)
$65M
(16%)
$175M
(42%)
2022E Sales By Region ($M)
(1) $0.35 EPS excludes intangible amortization
(2) Based on 2022 expected results
(1) (2)
(2)
FIT WITH FOUR PILLAR STRATEGY
20
Specialization
• Innovation-led organization with
tremendous intellectual property value in
trademarks, patents and “know-how”
• Deep history of application development
and premium, leading brand with the
World’s Strongest FiberTM
Globalization
• Global customer base with an
established presence across all major
geographic regions
• Global technology centers complement
existing Composites applications and
expertise
Operational
Excellence
• Best-in-class safety performance
• Well-run and maintained asset base fit to
serve future growth
• Highly effective and reliable supply chain
with emphasis on optimizing service to
customers
Commercial
Excellence
• Deep customer relationships extend
across the value chain and drive ability
to grow
• Offer a full suite of services with an active
role in design, development and
commercialization
People
Experienced and
talented associates
with a passion for
safety, specialization
and winning
DYNEEMA® OVERVIEW
K E Y I N D U S T R I E S
PERSONAL PROTECTION
Military • Law Enforcement • First
Responders Body Armor • Helmets •
Vehicle Protection
$215M
MARINE & SUSTAINABLE
INFRASTRUCTURE
Towing / Mooring • Aquaculture •
Floating Wind • Offshore Cranes
$130M
CONSUMER
Consumer • Outdoor High Performance •
Safety Equipment
$70M
21 Figures reflect 2022 expected sales
MIFOverview Competition Valuechain &
Go-to-market Strategy Innovation Financials
TECHNOLOGY
22
1,200 1,300
2,500
Avient Dyneema Combined
Patents
• True specialty business – the World’s Strongest Fiber™
• Deep history of application development with customers,
strongest in the industry
• The only UHMwPE (ultra-high molecular weight polyethylene)
fiber producer that is backward integrated
o Provides innovation advantage through control of all steps of the process
• Complementary with our existing reinforced film expertise
(PolyStrand) and engineered fiber presences (Fiber-Line)
WINNING PROPERTIES
Ultra high strength vs. weight Highly flexible
Floats on water Chemically inert; no smell/taste and non-toxic
High resistance to UV radiation Self-lubricating, with low friction
One-of-a-kind technology
®
FORMULATION PROCESS
23
• Like Avient, Dyneema® offers similar
core competencies around formulation
and material science
• Technology that combines polymers and
fibers to provide specialized, high
performing solutions for customers
• Design capabilities ensure that
applications are highly customized for
the specified end use
DYNEEMA® IN THE VALUE CHAIN
24
UHMwPE
Fiber / Tapes
Military Personnel,
Law Enforcement
Heavy Marine,
Offshore Wind Energy
and Mooring,
Aquaculture
Outdoor,
Footwear, Apparel,
Inflatables
• Material Science
• Formulation
• Service
INTERMEDIATE MANUFACTURING
(CUSTOMERS) OEM / APPLICATION
DEMAND TRENDS
25
• Military spending and near-term demand for higher performing personal protection
products (like Dyneema®) expected to increase
o European NATO members annual defense spend expected to increase by up to 20%(1)
o Japan aiming to almost double defense spending over the next 5 years(2)
o Accelerated launch of next generation technology in North America
• Policy-driven demand for sustainable energy; growth in floating offshore wind
farms which require advanced, durable technology
o Offshore wind expected to grow at a CAGR of 32% with the level of annual installations
quadrupling over the next five years(3)
• Continued investment in aquaculture as a sustainable food source(4)
• Strong demand in outdoor high performance space across niche consumer
applications aligns with 10% growth assumption for Avient’s Composites portfolio
Sources:
(1) “Funding NATO”, NATO.int (April 1, 2022)
(2) “Japan Ruling Party Calls for Defense Spending Boost to 2% of GDP”, WSJ (April 21, 2022)
(3) “Global Wind Report 2021”, Global Wind Energy Council
(4) “Aquaculture Supports a Sustainable Earth”, NOAA Fisheries
26
A L I G N M E N T W I T H
S U S T A I N A B I L I T Y G O A L S
PRODUCTS
AVIENT’S EXISTING COMPOSITES PORTFOLIO
D I V E R S E C A P A B I L I T I E S A N D S O L U T I O N S S E R V I N G
M A N U F A C T U R E R S A N D O E M S
LFT Tapes Laminates/Panels Shapes Pultrusion Engineered Fibers
27
AVIENT’S COMPOSITES PORTFOLIO
SALES AND EBITDA
28
$74 $84
$216 $212
$261
$5 $10
$32
$41
$49
$180
0
100
150
200
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
$550
$600
$650
$700
$750
2017 2018 2019 2020 2021 2022E
$680
• Dyneema® acquisition will further
improve Composites EBITDA margins
to 26%
• Dyneema® will complement our
existing portfolio with deep formulation
expertise, innovative culture and
global commercial presence
• Composites will continue to be a key
growth driver to deliver future revenue
growth in excess of GDP
(1) Pro forma for the acquisition of Dyneema®
DISTRIBUTION DIVESTITURE
CONSIDERATIONS
DISTRIBUTION HIGHLIGHTS
30
$21
$57
$69
$94
$105
0
100
150
2006 2011 2016 2021 2022E
• Leading North American Distribution business with
longstanding blue-chip supplier and customer
relationships
• Commercial excellence and regulatory knowledge have
grown healthcare portfolio to over 25% of sales and
positioned business for long-term growth
• Highly specialized portfolio of engineered polymers along
with sustainable solution offerings
• Leading digital capabilities through Avient Now, allowing
enhanced visibility and 24/7 interface with customers
• 98% free cash flow conversion drives greater than 30%
after-tax return on invested capital (ROIC)
• Potential divestiture allows us to remain modestly
leveraged with net debt to adjusted EBITDA expected to
be 2.9x and positions us for further specialty growth in the
future
EBITDA (in $M)
DYNEEMA® TRANSACTION OVERVIEW
31
- $1.48B net purchase price
- Represents 11.4x expected 2022 EBITDA
- Committed financing in place
- Permanent financing to be combination of available cash on-hand, new
Senior Unsecured Notes, new Senior Secured Term Loan
- Potential proceeds from Distribution divestment could be used to pay down
near-term maturing debt
- Closing expected in second half of 2022, subject to regulatory
approvals and certain customary closing conditions
Transaction
Value
Financing
Closing
Conditions /
Timing
CAPITAL STRUCTURE / LEVERAGE
32
• Financing commitments secured from Morgan Stanley
and J.P.
Morgan
• New Senior Secured Term Loan B and new Senior
Unsecured Notes
• Potential proceeds from sale of Distribution business
modeled to pay off 5.25% senior notes due 2023 and
Term Loan
• Acquisition aligned with Avient’s track record of
disciplined capital allocation policy
• Existing dividend policy maintained, focus on
deleveraging in the near term
(1) Pro forma for the acquisition of Dyneema® and potential divestiture of Distribution,
including repayment of senior notes due 2023 and Term Loan
Cash and Cash Equivalents 595$
Senior Secured Term Loan due 2026 605$
New Senior Secured Term Loan B 500
Total Senior Secured Debt 1,105$
Senior Unsecured Notes due 2025 650$
New Senior Unsecured Notes 740
Total Senior Unsecured Debt 1,390$
Total Debt 2,495$
Net Debt 1,900$
2022 Pro forma Adjusted EBITDA 660$
Net Debt / Adjusted EBITDA 2.9x
Pro Forma Capitalization
(2022 estimates, all figures in $M)
TWO-YEAR LEVERAGE GOAL
33
3.5x
2.7x
1.7x
2.9x
2.5x
2.2x
2019PF 2020PF 2022E 2022PF 2023E 2024E
Dyneema® AcquisitionClariant Color Acquisition
(1) Pro forma for the acquisition of the Clariant Color business
(2) Pro forma for the acquisition of Dyneema® and potential divestiture of
Distribution, including repayment of senior notes due 2023 and Term Loan
(1) (1) (2)
34
PRO FORMA MODELING
2022E Pro Forma Pro Forma
($M) w/ Dyneema w/Sale
Revenue 5,100$ 415$ 5,515$ (1,775)$ 3,740$
Adjusted EBITDA 635 130 765 (105) 660
EBITDA % 12% 31% 14% 6% 18%
Pro Forma EPS (Adjusted) 3.50$ 0.00$ 3.50$ (0.56)$ 2.94$
Pro Forma EPS (excl. amortization) 3.96$ 0.35$ 4.31$ (0.56)$ 3.75$
Leverage (12/31/2022E)
Net Debt / Adjusted EBITDA 1.7x 3.5x 2.9x
Avient Dyneema Distribution®
®
OUR SPECIALTY JOURNEY
ACQUISITION HISTORY
36
Commercial
Resources(1)
Operating Margins
259
360
$40
$122
Established Acquisitions
(> 7 years)
+ 39% + 210% + 1200 bps
(1) Commercial Resources include associate headcount in R&D / Technical, Marketing and Sales
CLARIANT COLOR ACQUISITION
37
$133
$205
2019PF 2021
37
Clariant Color EBITDA Growth
Purchase Price Multiple
10.8x
7.0x
6.1x
2019PF 2021 2021 w/ Full
Synergies
• 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
• $54 million of synergies realized in 2021
• Acquisition completed on July 1, 2020 for $1.45 billion.
March 31, 2022
GAAP
Special
Adjusted
Operating Income $ 128.6 $ 7.8 $ 136.4
Income before income taxes $ 111.1 $ 7.7 $ 118.8
Income tax expense - GAAP (26.6) — (26.6)
Income tax impact of special items — (2.0) (2.0)
Tax adjustments — 1.5 1.5
Net income attributable to noncontrolling interests (0.3) — (0.3)
Net income attributable to Avient shareholders $ 84.2 $ 7.2 $ 91.4
EPS $ 0.91 0.08 $ 0.99
Weighted-average diluted shares 92.3 92.3 92.3
1
March 31, 2021
GAAP
Special
Adjusted
Operating Income $ 120.4 $ 2.4 $ 122.8
Income before income taxes $ 102.6 $ 2.4 $ 105.0
Income tax expense - GAAP (22.9) — (22.9)
Income tax impact of special items — (0.9) (0.9)
Tax adjustments — 1.1 1.1
Net income attributable to noncontrolling interests (0.4) — (0.4)
Net income attributable to Avient shareholders $ 79.3 $ 2.6 $ 81.9
EPS $ 0.86 0.03 $ 0.89
Weighted-average diluted shares 92.2 92.2 92.2
Year Ended
December 31, 2021
GAAP
Special
Adjusted
Operating income $ 381.2 $ 47.8 $ 429.0
Income from continuing operations before income taxes $ 304.6 $ 57.1 $ 361.7
Income tax expense - GAAP (74.0) — (74.0)
Income tax impact of special items — (13.0) (13.0)
Tax adjustments — 5.9 5.9
Net income attributable to noncontrolling interests 0.2 — 0.2
Net income from continuing operations attributable to Avient shareholders $ 230.8 $ 50.0 $ 280.8
EPS $ 2.51 0.54 $ 3.05
Weighted-average diluted shares 92.1 92.1 92.1
Reconciliation of EBITDA by Segment
March 31,
Year Ended
2022 2021 2021
Operating income:
Color, Additives and Inks $ 94.5 $ 88.8 $ 303.1
Specialty Engineered Materials 39.7 34.2 132.0
Distribution 24.2 24.0 93.2
Corporate and eliminations (29.8) (26.6) (147.1)
Operating income $ 128.6 $ 120.4 $ 381.2
Items below OI in Corporate:
Other income, net $ (0.6) $ 1.5 $ (1.3)
Depreciation & amortization:
Color, Additives and Inks $ 26.0 $ 27.4 $ 105.7
Specialty Engineered Materials 7.8 7.8 31.7
Distribution 0.2 0.2 0.8
Corporate and eliminations 3.8 1.7 7.7
Depreciation & Amortization $ 37.8 $ 37.1 $ 145.9
EBITDA:
Color, Additives and Inks $ 120.5 $ 116.2 $ 408.8
Specialty Engineered Materials 47.5 42.0 163.7
Distribution 24.4 24.2 94.0
Corporate and eliminations (26.0) (24.9) (140.7)
EBITDA $ 165.8 $ 159.0 $ 525.8
Reconciliation of Sales, Operating Income and EBITDA - Distribution
Year Ended
2006 2011 2016
Sales $ 732.8 $ 996.5 $ 1,071.0
Operating income 19.2 56.0 68.2
Depreciation & amortization 1.5 0.7 0.7
EBITDA $ 20.7 $ 56.7 $ 68.9
March 31,
Year Ended
December 31,
Reconciliation to EBITDA and Adjusted EBITDA: 2022 2021 2021
Net income from continuing operations – GAAP $ 84.5 $ 79.7 $ 230.6
Income tax expense 26.6 22.9 74.0
Interest expense 16.9 19.3 75.3
Depreciation and amortization from continuing operations 37.8 37.1 145.9
EBITDA $ 165.8 $ 159.0 $ 525.8
Special items, before tax 7.7 2.4 57.1
Depreciation and amortization included in special items (2.1) (0.5) (1.7)
Adjusted EBITDA $ 171.4 $ 160.9 $ 581.2
AVNT May IR Presentation.pdf
Avient Corporation �investor meetings
DISCLAIMER
Avient: Who We Are
Who we are – Vision, Strategy, Culture
What we do: material science
Sustainability for a Better Tomorrow
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Q1 2022 SALES AND OPERATING INCOME�(Total Company)
Slide Number 12
Slide Number 13
Slide Number 14
Slide Number 15
Slide Number 16
Slide Number 17
Slide Number 18
Slide Number 19
FIT with Four Pillar Strategy
Dyneema® overview
Slide Number 22
Slide Number 23
Dyneema® in the Value Chain
Demand trends
Products
Avient’s Existing Composites Portfolio
Avient’s Composites Portfolio�Sales and Ebitda
Distribution Divestiture Considerations
Distribution highlights
Dyneema® Transaction Overview
Capital structure / Leverage
Two-Year Leverage Goal
Pro forma modeling
Our Specialty Journey
Acquisition History
Clariant Color Acquisition
Specialty Transformation
Culture and People
Our Specialty Journey continues
Slide Number 41
PEER COMPARISONS
Avient is asset light
High free cash flow conversion
2022 ebitda margins vs. peers
Our valuation versus peers
Slide Number 47
Slide Number 48
Slide Number 49
�2021 segment, end market and Geography
Slide Number 51
Slide Number 52
Slide Number 53
Slide Number 54
Masseto IR Presentation - 4.19 645pm w Non GAAP Recs.pdf
Masseto IR Presentation - 4.19 (515pm) - with attachments.pdf
https://www.avient.com/sites/default/files/2022-08/2022 Glasforms EC Application _ Product Selection Guide.pdf
Performance advantages:
• Non-conductive: formulations engineered
to optimize composite dielectric properties
• Lightweight: up to 80% lighter than porcelain,
reducing installation time and cost
• High strength: high tensile, compressive,
flexural and inter-laminar shear strength
to support various design configurations
and line loads
• Flexible: deflect and return to original shape
for load dampening to minimize damages
and outages
• Durable and shatter resistant vs. ceramic
and glass, and UV and corrosion resistant
for long service life
INSULATORS
AND ARRESTERS
OVERHEAD
SWITCH RODS
CROSSARMS
AND BRACES
COMPOSITE
POLES
GUY
INSULATORS
Electrical Transmission & Distribution Applications
COMPONENT DESCRIPTION SIZES
Insulators for transmission and distribution
Suspension insulators Epoxy/corrosion resistant glass rods .625" to 1.25" diameter
Line post and station
post insulators Epoxy/glass fiber rods 1.50" to 4.74" diameter
Arresters
Cage type Polyester or vinyl ester/glass fiber rods .125" to .50" diameter
Custom tubular Polyester, vinyl ester or epoxy/
glass fiber custom shapes 2.0" to 6.0" envelope size
Pole line construction
Conductor standoff and
equipment support arms Polyester/glass fiber rods 1.50" to 2.00" diameter
Guy strain insulators Polyester/glass fiber rods 0.50" to .812" diameter
Cross arms
Tangent and deadend,
support braces
Polyester/glass fiber
rectangular tubes
3.62" x 4.62" and
4.0" x 6.0" rectangular
Utility poles
Composite poles Polyester/glass fiber hollow
custom tubes
10" to 14" diameter,
typical lengths 40' to 110'
Pole line construction, cross arms, rods, and utility poles feature an integral fabric surfacing veil for long-term weather resistance
and retention of properties.
https://www.avient.com/sites/default/files/2020-10/trilliant-xr-product-bulletin.pdf
PRODUCT BULLETIN
PROPERTY TEST METHOD TYPICAL VALUE
(ENGLISH)
TYPICAL VALUE
(SI)
Specific Gravity ASTM D-792 11.0 11.0
Tensile Modulus1 ASTM D-638 1.20E+6 psi 8270 MPa
Tensile Strength1 (Yield) ASTM D-638 3,950 psi 27.2 MPa
Flexural Modulus ASTM D-790 800,000 psi 5520 MPa
Flexural Strength ASTM D-790 7,000 psi 48.3 MPa
Notched Izod Impact2 ASTM D-256A 2.1 ft•lb/in 110 J/m
Deflection Temperature Under Load
66 psi (0.45 MPa), Unannealed,
0.250 in (6.35mm)
ASTM D-648 280°F 138°C
Deflection Temperature Under Load
264 psi (1.8 MPa), Unannealed,
0.250 in (6.35mm)
ASTM D-648 190°F 87.8°C
TECHNICAL PROPERTIES
1 Type I, 0.20 in/min (5.1 mm/min)
2 73°F (23°C), 0.125 in (3.18 mm), Injection molded
www.avient.com
Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2020-08/stan-tone-epx-product-bulletin.pdf
% Pigment Specific Gravity Color Index Lightfastness
WHITE
10EPX03 Titanium Dioxide, Rutile 57 1.95 PW-6 I/O
YELLOW
12EPX01 Diarylide AAOT GS 25 1.22 PY-14 I
12EPX03 Diarylide HR RS 20 1.2 PY-83 I/O (Mass)
13EPX02 Isoindolinone RS 30 1.3 PY-110 I/O
13EPX03 Benzimidazolone GS 40 1.27 PY-151 I/O (Mass)
81EPX01 Iron Oxide 40 1.62 PY-42 I/O
ORANGE
15EPX03 Benzimidazolone 30 1.26 PO-36 I/O
RED
23EPX04 Quinacridone BS 25 1.21 PV-19 I/O
23EPX06 Specialty Naphthol BS 30 1.21 PR-170 I/O (Mass) C
25EPX01 Red 2B, Ca Salt Bs 24 1.27 PR-48:2 I/O (Mass)
28EPX01 Red 2B, Ba Salt YS 23 1.29 PR-48:1 I/O (Mass)
82EPX01 Iron Oxide, Light BS 40 1.67 PR-101 I/O
82EPX02 Iron Oxide, Dark BVS 40 1.68 PR-101 I/O
82EPX04 Iron Oxide, Light VYS 40 1.67 PR-101 I/O
BLUE
40EXP03 Phthalocyanine GS 25 1.25 PB-15:3 I/O
40EXP05 Phthalocyanine RS 25 1.25 PB-15:3 I/O
42EXP02 Ultramarine 50 1.54 PB-29 I/O
49EXP01 Cobalt 50 1.83 PB-28 I/O
GREEN
50EPX02 Phthalocyanine BS 18 1.34 PG-7 I/O
50EPX03 Phthalocyanine YS 25 1.42 PG-7 I/O
59EPX01 Chromium Oxide 40 1.64 PG-17 I/O
VIOLET/MAGENTA
24EPX03 Quinacridone Violet 15 1.2 PV-19 I/O
24EPX04 Ultramarine Violet 50 1.66 PV-15 I/O
24EPX05 Quinacridone Magenta 20 1.21 PR-122 I/O
24EPX06 Benzimidazolone 20 1.2 PV-32 I/O
24EPX07 Carbazole Violet 15 1.2 PV-23 I/O
BROWN/TAN
83EPX01 Iron Oxide, Light 39 1.64 PBr-6 I/O
83EPX02 Iron Oxide, Dark 40 1.66 PBr-6 I/O
BLACK
90EPX01 Furnace - High Jet 14 1.23 PBk-7 I/O
90EPX04 Furnace - Medium 20 1.25 PBk-7 I/O
90EPX05 Iron Oxide 50 1.77 PBk-11 I/O
EPX
RS = Red Shade
YS = Yellow Shade
VYS = Very Yellow Shade
BS = Blue Shade
VBS = Very Blue Shade
GS = Green Shade
HR = Heat-Resistant
LIGHTFASTNESS
I = Indoor Only
I/O = Indoor or Outdoor
Mass = Outdoor Masstone
Application Only
C = Some Caution Advised
www.avient.com
Copyright © 2020, Avient Corporation.