https://www.avient.com/sites/default/files/2023-12/Complet LFT OHP Side by Side Seat Pan %281%29.pdf
OFF-ROAD VEHICLE
MANUFACTURER
S E A T P A N
• Consolidate parts to reduce assembly time and lower
manufacturing costs
• Maintain performance while replacing metal seat pan with
lightweight composite material
• Aided consolidation of multiple metal parts
and fasteners into a single injection molded
component, lowering costs $100k year
• Saved time and money using FEA validation
to confirm real-world performance before
building tooling
• Created full-size 3D printed prototypes to
test fit and function
Complēt™ Long Glass Fiber Nylon Composite
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/products/long-fiber-technology/long-fiber-technologies/compl-t-long-fiber-reinforced-structural-thermoplastics
https://www.avient.com/products/fiber-line-engineered-fiber-solutions/fiber-line-performance-enhancing-processes/fiber-twisting
Fiber-Line™ Twisting
Twisted products include Ripcords, Strength Members, Belt and Hose Reinforcement Yarn, Industrial Fabric Yarn and Wire Harness Yarn.
Fiber-Line™ Engineered Fiber Products
https://www.avient.com/sites/default/files/2023-10/Complet LFT - Aerospace Seating Component - case study snapshot.pdf
TIER 1 AEROSPACE
SUPPLIER
S E A T I N G S T R U C T U R A L
C O M P O N E N T
• Reduce weight to improve fuel economy
• Pass FAA flame, smoke, toxicity requirements
• Meet structural requirements
• Simplify manufacturing process
• Lowered weight ~40% versus aluminum while
maintaining the strength performance properties
• Formulated a PES material to satisfy flame, smoke,
toxicity (FST) standards for commercial aircraft
• Passed and/or exceeded customer’s impact testing
specifications
• Provided an injection moldable hybrid glass/carbon
fiber solution that enabled lower viscosity and
better processability for thin wall parts
Complēt™ Long Hybrid (Carbon + Glass) Fiber
Reinforced PES Composite
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/products/long-fiber-technology/long-fiber-technologies/compl-t-long-fiber-reinforced-structural-thermoplastics
https://www.avient.com/products/engineered-polymer-formulations/conductive-signal-radiation-shielding-formulations/surround
Additional benefits and features of Surround formulations vary depending on the reinforcing additives used, such as nickel-coated carbon fiber and stainless steel fiber.
The design and lightweighting benefits of thermoplastics with the conductive performance of metal
Engineered with short fiber reinforcements to provide precise levels of electrical conductivity
https://www.avient.com/sites/default/files/2022-05/AVNT May IR Presentation w Non GAAP Recs.pdf
Operational Excellence
Empowers us to respond to the voice of the customer with relentless continuous
improvement.
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.
Purchase price multiple rapidly declining on strength of
business and synergy capture
(1) Financial information is pro forma to include a full year of Clariant Color acquisition
11.9%
16.2%
2019PF 2021
EBITDA Margins
SPECIALTY TRANSFORMATION
46%
66%
86%
100%
0%
40%
60%
80%
100%
2005 2010 2015 2021 2022 PF
%
o
f A
dj
us
te
d
EB
IT
D
A(1
)
JVs Distribution Performance Products & Solutions Specialty
(1) Adjusted EBITDA is EBITDA excluding corporate costs and special items
(2) Pro forma for the acquisition of Dyneema® and potential divestiture of Distribution
(2)
38
CULTURE AND PEOPLE
39
OUR SPECIALTY JOURNEY CONTINUES
40
• Dyneema® brings leading technology and brand with the World’s
Strongest Fiber™, deep history of application development and
strong management team focused on specialty applications
• Dyneema® transaction is aligned with our previously stated acquisition
goal of expanding our composites and fiber capabilities
• Similar to our other technology expansion acquisitions, Dyneema®
allows us to leverage our invest-to-grow strategy
• We plan to explore a possible sale of our Distribution business.
https://www.avient.com/sites/default/files/2023-10/2023 Hammerhead Application _ Install Guide.pdf
HAMMERHEAD™
MARINE COMPOSITE PANELS
APPLICATION & INSTALLATION GUIDE
PRODUCT
DESCRIPTION
FEATURE BENEFIT
Exceptional strength-to-weight ratio Lightweight yet strong structural
performance and increased payloads
Resistance to UV light, chemicals,
moisture degradation and rot Resistance to harsh marine conditions
Tough and impact resistant Durability and long product life
Dimensionally stable Consistent performance in extreme
temperature and humidity fluctuations
Strong adhesive properties Easy bonding to various materials
FEATURE BENEFIT
Ready-to-install Fewer parts & reduced scrap
Large format Improved aesthetics with
seamless designs
Made via continuous-fiber
manufacturing process Consistent quality in every panel
PERFORMANCE ADVANTAGES
MANUFACTURING ADVANTAGES
Hammerhead™ Marine Composite Panels
are made from continuous glass-fiber
reinforced thermoplastic face sheets
and polyester foam cores.
Example: Deflection for 24 inch panel = Chart value *[12 / 24]
SUPPORT SPAN DEFLECTION (continued)
Fixed End Beam Deflection
7 lb/ft3 core density at various panel thicknesses
* To calculate deflection for different panel widths, use the
following formula: Deflection = Chart value* [12 / panel width].
To learn more about our advanced composite solutions,
contact Avient at +1.844.4AVIENT or visit www.avient.com.
https://www.avient.com/resource-center?document_subtype=0&document_type=59&form_id=resource_filter_form&industry=0&op=FILTER RESULTS&product_family=0&product_name=0&page=37
Advanced Composites Explained
Polystrand Composite Reinforced Panels - Application Bulletin
Polystrand Nonwoven/Composite Panels for vehicle interiors
https://www.avient.com/resource-center?document_type=59&page=45
Advanced Composites Explained
Polystrand Composite Reinforced Panels - Application Bulletin
Polystrand Nonwoven/Composite Panels for vehicle interiors
https://www.avient.com/sites/default/files/resources/PolyOne%25202016%2520Annual%2520Report%2520Web.pdf
Polystrand operates in the advanced area of
continuous reinforced thermoplastic composite technology space, a next generation material science that delivers
the high strength and lightweight characteristics of composites, further enhanced with the design flexibility to form
more complex shapes.
Polystrand operates in the advanced area of
continuous reinforced thermoplastic composite technology space, a next generation material science that delivers
the high strength and lightweight characteristics of composites, further enhanced with the design flexibility to form
more complex shapes.
Polystrand operates in the advanced area of continuous reinforced
thermoplastic composite technology space, a next generation material science that delivers the high strength and
lightweight characteristics of composites, further enhanced with the design flexibility to form more complex shapes.
https://www.avient.com/sites/default/files/2021-06/fl.a4.datasheet-technora.pdf
Types
T-200 Rubber Reinforcement.
T-240 Fabrics, Composites.
We believe that our ongoing
commitment to protect the environment, to remain at
the forefront of fiber and coating technology, and to
‘treat others as we want to be treated’ will continue to
drive the success of our customers, shareholders, and
employees.