https://www.avient.com/sites/default/files/2023-05/Mevopur Healthcare Colorants and Formulations Amber for Pharma Application Bulletin.pdf
KEY CHARACTERISTICS
• Manufactured at four ISO 13485 certified sites,
providing global consistency and increased
security of supply
• Documented change control beyond CAS
number level, reducing risk of change
• Non-phthalate and formulated without
animal-derived substances
• Different tones of amber available on request
—more or less red or yellow and/or lighter
or darker
• Also available in liquid form
REGULATORY SUPPORT
• Pre-tested raw materials:
- ISO 10993-1 and USP parts
(Class VI)
- European Pharmacopeia, monograph
3.1.15, USP and elemental analysis
as per ICH Q3D
- USP criteria appearance of solution,
color
• Registered Drug Master File (Type III) by
the FDA
• Food contact compliance established with
FDA/EU*
• YBB00102002-2015 (oral liquid pharmaceutical
PET bottles) compliance support
APPLICATION BULLETIN
* FDA/EU compliance
information available
upon request
Healthcare use limitations apply—see below.
https://www.avient.com/sites/default/files/2023-09/Avient Sustainability Day 2023 - Website %289.19%29.pdf
DISCLAIMER
Avient Corporation 3
Avient Corporation 4
Welcome
Chairman, President, and Chief Executive Officer
INTRODUCTION
Sustainability for a Better Tomorrow
Senior Vice President and Chief Financial Officer
Avient Corporation 5
WE ARE A FORMULATOR
CUSTOM
FORMULATION
Avient Corporation 6
Avient Corporation 7
WE ARE INNOVATORS
2,500+
ACTIVE PATENT
FILINGS WORLDWIDE
1,100+
RESEARCH AND
DEVELOPMENT ASSOCIATES
>85% Stage-gate technology projects
enable sustainable solutions
INDIA INNOVATION CENTER
33%
2022 VITALITY
INDEX
140+
MATERIAL SCIENCE
PhD ASSOCIATES
Avient Corporation 8
3% 3%
5%
Avient Specialty Formulators Other Specialty /
Chemical Companies
CAPEX / Revenue
2023E
Global footprint enables greater flexibility to exceed
needs of customers and deliver localized technical
and formulation expertise
9
36
24
Manufacturing Locations by Region
WE ARE ASSET LIGHT
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA
Avient Corporation 9
Asset-light flexibility
enables more nimble
manufacturing capabilities
and lower overhead
Periods of economic
weakness have driven
higher levels of cash
generation due to working
capital improvement
PROVEN TRACK RECORD OF HIGH FREE CASH FLOW CONVERSION
80% 80%
81%
84%
83%
79%
50%
70%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E
150
200
250
300
350
400
Fr
ee
C
as
h
Fl
ow
C
ve
rs
io
Fr
ee
C
as
h
Fl
ow
FCF $ AVNT FCF Conversion % S&P FCF Conversion %
2 Recent Divestitures - Combined $1.7B in Proceeds
PORTFOLIO EVOLUTION
Avient Corporation 10
Combined $3.6B Investment in Acquisitions Since 2016
Color Business
Distribution
2016 2022
PORTFOLIO TRANSFORMATION
46%
87%
0%
20%
2005 2010 2015 2020 2023
%
o
f A
dj
us
te
d
EB
IT
DA
Commodity JVs Distribution Performance Products & Solutions Specialty Businesses
Adjusted EBITDA from Specialty Applications
Avient Corporation 11
END MARKET TRANSFORMATION
Defense
Avient Corporation 12
8%
23%
4%
2006 2023E
Other
Industri
es
22%
56%
14%
43%
9%
2006 2023E
Reduced Exposure to Cyclical End Markets End Market Diversification
Transportation
Building &
Construction
57%
Defense
IMPROVING PROFITABILITY AND EXPANDING MARGINS
Avient Corporation 13
Adj.
White House Administration
GOVERNMENT INFLUENCE CREATES OPPORTUNITIES
Avient Corporation 32
175 Countries support the UN Plastics Treaty to help
manage plastics pollution
£210
U.K. tax per tonne on products
containing less than 30% recycle
content (U.K.
Plastic Tax)
145
Global regulatory measures addressing
collection sorting, extended producer
responsibility (EPR), waste recycling, and reuse
Recyclable or reusable packaging in
the E.U. by 2030 (E.U.
https://www.avient.com/sites/default/files/2023-06/AVNT June IR Conferences w_Non GAAP Recs.pdf
We also monitor earnings (defined as net income from continuing operations) before interest, taxes, depreciation
and amortization (EBITDA) and adjusted EBITDA (EBITDA before the impact of special items) as a supplement to our GAAP
measures.
Three Months Ended
March 31, 2023
Three Months Ended
March 31, 2022
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income from continuing operations attributable to Avient shareholders $ 20.8 $ 0.23 $ 64.4 $ 0.70
Special items, after tax 22.3 0.24 6.4 0.07
Amortization expense, after-tax 15.1 0.16 $ 10.8 $ 0.12
Adjusted net income / EPS $ 58.2 $ 0.63 $ 81.6 $ 0.89
March 31,
Reconciliation of Pro Forma Sales 2023 2022
Sales $ 845.7 $ 892.2
APM pro forma adjustments — 94.9
Pro forma sales $ 845.7 $ 987.1
1
Three Months Ended
Reconciliation to EBITDA and Adjusted EBITDA: 2023 2022
Net income from continuing operations – GAAP $ 21.3 $ 64.7
Income tax expense 7.7 20.0
Interest expense, net 28.8 16.9
Depreciation and amortization 50.5 37.6
EBITDA from continuing operations $ 108.3 $ 139.2
Special items, before tax 27.3 6.7
Depreciation and amortization included in special items (1.8) (2.1)
Adjusted EBITDA $ 133.8 $ 143.8
Pro forma APM adjustments — 32.0
Pro forma adjusted EBITDA $ 133.8 $ 175.8
Pro forma adjusted EBITDA as a % of sales 15.8 % 17.8 %
2023 2022
Sales:
Color, Additives and Inks $ 537.0 $ 649.5
Specialty Engineered Materials 309.7 243.1
Corporate (1.0) (0.4)
Sales $ 845.7 $ 892.2
Operating income:
Color, Additives and Inks $ 65.6 $ 94.5
Specialty Engineered Materials 43.1 38.3
Corporate (51.6) (30.6)
Operating income $ 57.1 $ 102.2
Depreciation & amortization:
Color, Additives and Inks $ 25.8 $ 26.0
Specialty Engineered Materials 21.2 7.8
Corporate 3.5 3.8
Depreciation & Amortization $ 50.5 $ 37.6
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 91.4 $ 120.5
Specialty Engineered Materials 64.3 46.1
Corporate (48.1) (26.8)
Other income (expense), net 0.7 (0.6)
EBITDA $ 108.3 $ 139.2
AVNT June IR Conferences w Non GAAP Recs.pdf
AVNT Q1 2023 Earnings Presentation.pdf
AVNT Q1 2023 Earnings Presentation
5.2 221pm IR Deck - AVNT-2023.03.31 (002).pdf
https://www.avient.com/sites/default/files/2021-12/AVNT 2021 Investor Day_0.pdf
Fiber Technology
Avient Corporation 107
We are breaking ground on a new innovation center adjacent to our manufacturing facility in Pune
• Focused on investments in both R&D resource
additions and capital investments
• Platform development in new disruptive
markets to support core business and strategy
ISHA
Avient Manufacturing
Site, Pune, India
India Innovation Center
Innovative Sustainable Holistic Accelerator (ISHA)
Avient Corporation 108
2021E 2022E 2023E 2024E 2025E
$1.1B
$1.6B
Growth Through Innovation
Avient Corporation 109
Total CAI and SEMWorld-Class Vitality Index
% of revenue from products launched last five years
35%
Revenue from new products
Summary
Jamie Beggs
Avient Corporation 110
$442
$457
$580
$1.74
$1.93
$3.00
Full Year 2019 – 2021 Organic Growth
(TOTAL COMPANY)
Sales Adjusted EBITDA
$3,981
$3,783
$4,750
+ 19%
Adjusted EPS
(1) Financial information is pro forma to include a full year of Clariant Color acquisition
(in millions) (in millions)
(1)(1)
+ 31% + 72%
Avient Corporation 111
2021 Sales Growth Summary
Key Growth Drivers Segments
(1) Financial information is pro forma to include a full year of Clariant Color business acquisition
Sales
Growth
2020 Proforma 3,783$
Sustainable Solutions 140 18%
Healthcare 150 31%
Composites 44 33%
Growth in Asia / LATAM 103 21%
Other 530 28%
2021 Estimated 4,750$ 26%
Sales
Growth
2020 Proforma 3,783$
Color, Additives & Inks 330 16%
Specialty Engineered Materials 195 28%
Distribution 495 45%
Corporate & Eliminations (53)
2021 Estimated 4,750$ 26%
Avient Corporation 112
Year–to–date EBITDA Bridge
2020 September YTD $ 339
Demand 132
EBITDA($ millions)
(1) Financial information is pro forma to include a full year of Clariant Color business acquisition
CAI:
Price / Mix 96
Inflation (74)
SEM:
Price / Mix 61
Inflation (45)
Distribution:
Price / Mix 204
Inflation (195)
Net Price Benefit 47
Supply Chain Disruptions (38)
COVID Response Applications (11)
Synergies 34
Incentives, Travel, FX, Other (48)
2021 September YTD $ 455
• Demand driven by growth in
sustainable solutions, healthcare
and consumer applications
• Price increases have more than
covered raw material and freight
inflation impacts of $300M year-
to-date compared to 2020
• Synergy capture on pace to
achieve $52M in annual savings
in 2021
Avient Corporation 113
$1,110
$3,000
Return on Invested Capital
Avient Corporation 114
Invested Capital
2006 Current
11%
Cost of Capital
ROIC (after-tax)
0.1 0.1
0.2
0.5
0.6
0.7
0.8
0.9
0.9
1.0 1.0
11 12 13 14 15 16 17 18 19 20 21
44%
98%
YTD 5 - YR 10 - YR
0.16
0.20
0.26
0.34
0.42
0.50
0.58
0.72
0.79 0.81
0.85
0.95
11 12 13 14 15 16 17 18 19 20 21 22
2.1x
Q4 NET LEVERAGE
~$1Bn
REPURCHASED
OVER LAST 10 YEARS
~$450MM
PAID OVER LAST 11 YEARS
Creating Value for Shareholders
Avient Corporation 115
Share Performance Dividends Share Repurchases Deleveraging
3.5x
2.1x
Growing Dividend Cumulative Buybacks Net Leverage
$B
$
p
r
sh
ar
Total Shareholder Return
~$4.3Bn
MARKET CAP INCREASE
OVER LAST 10 YEARS
(1) Share performance includes reinvested dividends and is as of December 2, 2021
(2) Financial information is pro forma to include a full year of Clariant Color acquisition
(2)
528%
Shaping a Sustainable Future…
Avient Corporation 116
SUSTAINABLE SOLUTIONS
$340
$930
2016 2021E
Brand Owner Commitment
10 – 50
Percent of recycled
plastic used
13% organic CAGR
Avient Corporation 117
8-12%
HEALTHCARE
$225
$685
17,645
29,445
9% organic CAGR
Source: BCC Research, Nov. 2020
11% CAGR
Market for Medical Plastics
(millions of LBs)
Figures above include relevant Sustainable Solutions sales
Avient Corporation 118
8-10%
COMPOSITES
$74
$260
2017 2021E
11% organic CAGR
Figures above include relevant Sustainable Solutions sales
Avient Corporation 119
5G Capacity and Demand
Source: Mobile Experts: 5G Millimeter Wave 2019:
ns
e
an
C
ap
ac
ity
(
o.
10% CAGR
ASIA AND LATIN AMERICA
$210
$1,150
Weighted Avg.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Dollars in millions, except for per share data)
Reconciliation of EBITDA by Segment
Sales:
Color, Additives and Inks $ 1,003.8
Specialty Engineered Materials 745.7
Distribution 1,192.2
Corporate and eliminations (79.0)
Sales $ 2,862.7
Operating income:
Color, Additives and Inks $ 147.4
Specialty Engineered Materials 83.7
Distribution 75.4
Corporate and eliminations (149.7)
Operating income $ 156.8
Items below OI in Corporate:
Other income, net $ 12.1
Depreciation & amortization:
Color, Additives and Inks $ 42.7
Specialty Engineered Materials 29.5
Distribution 0.5
Corporate and eliminations 5.4
Depreciation & Amortization $ 78.1
EBITDA:
Color, Additives and Inks $ 190.1
Specialty Engineered Materials 113.2
Distribution 75.9
Corporate and eliminations (132.2)
EBITDA $ 247.0
EBITDA as a % of Sales:
Color, Additives and Inks 18.9 %
Specialty Engineered Materials 15.2 %
Distribution 6.4 %
Reconciliation of Pro Forma EBITDA - Color, Additives and Inks
Year Ended
Sales:
Color, Additives and Inks $ 1,003.8
Clariant Color pro forma adjustments(1) 1,118.6
Pro forma sales $ 2,122.4
Operating income:
Color, Additives and Inks $ 147.4
Clariant Color pro forma adjustments(1) 72.9
Pro forma operating income $ 220.3
Depreciation & amortization:
Color, Additives and Inks $ 42.7
Clariant Color pro forma adjustments(1) 60.3
Pro forma depreciation & amortization $ 103.0
EBITDA
Color, Additives and Inks $ 190.1
Clariant Color pro forma adjustments(1) 133.2
Pro forma EBITDA $ 323.3
Pro forma EBITDA as a % of Sales 15.2 %
2009* 2010* 2011* 2012* 2013 2014 2015 2016** 2017 2018 2018*** 2019*** 2020
Net income from continuing
operations attributable to Avient
common shareholders $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6 $ 166.4 $ 173.5 $ 161.1 $ 87.7 $ 75.5 $ 152.7
Joint venture equity earnings, after
tax (19.0) (14.7) (3.7) — — — — — — — — — —
Special items, before tax(1) (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 23.8 32.9 59.5 58.7 61.7 66.2
Special items, tax adjustments(1) (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (15.9) (24.8) (25.3) (25.1) (5.9) (41.4)
Adjusted net income from
continuing operations
attributable to Avient common
shareholders $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 174.3 $ 181.6 $ 195.3 $ 121.3 $ 131.3 $ 177.5
Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1 80.4 80.4 77.7 92.1
Adjusted EPS attributable to Avient
common shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.06 $ 2.21 $ 2.43 $ 1.51 $ 1.69 $ 1.93
* Historical results have been updated to reflect subsequent changes to accounting principle and discontinued operations, excluding any changes as a result of
discontinued operations from the sale of the Designed Structures and Solutions segment (DSS) and the Performance Products and Solutions segment (PP&S).
** Pro Forma for sale of DSS.
*** Pro Forma for sale of PP&S.
*** Pro Forma for full year of the Clariant Color acquisition
Nine Months Ended
September 30,
Year Ended
December 31,
Reconciliation to Pro Forma Adjusted EBITDA 2020 2021 2020 2019
Net income from continuing operations – GAAP $ 59.1 $ 201.7 $ 133.8 $ 75.7
Income tax expense 22.5 51.8 5.2 33.7
Interest expense 55.3 57.8 74.6 59.5
Depreciation and amortization from continuing operations 77.3 107.7 115.1 78.1
EBITDA $ 214.2 $ 419.0 $ 328.7 $ 247.0
Special items, before tax 62.0 36.5 66.2 61.7
Interest expense included in special items (10.1) — (10.1) —
Depreciation and amortization included in special items (2.5) (0.1) (3.2) —
Adjusted EBITDA $ 263.6 $ 455.4 $ 381.6 $ 308.7
Clariant MB pro forma adjustments(1) 75.1 — 75.1 133.2
Pro forma adjusted EBITDA $ 338.7 $ 455.4 $ 456.7 $ 441.9
(1) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
December 31, 2020
Reconciliation of Pro Forma Adjusted
Earnings per Share Avient
Special
Items
Adjusted
Clariant MB
Pro Forma
Adjustments(1)
Pro Forma
Adjusted
Sales $ 3,242.1 $ — $ 3,242.1 $ 540.4 $ 3,782.5
Operating income $ 189.3 $ 73.7 $ 263.0 $ 45.0 $ 308.0
Interest expense, net (74.6) 10.1 (64.5) (18.1) (82.6)
Other income, net 24.3 (17.6) 6.7 — 6.7
Income taxes (5.2) (41.4) (46.6) (6.2) (52.8)
Net income attributable to noncontrolling
interests (1.8) — (1.8) — (1.8)
Net income from continuing operations
attributable to Avient shareholders $ 132.0 $ 24.8 $ 156.8 $ 20.7 $ 177.5
Weighted average diluted shares 90.6
Impact to diluted shares from January 2020 equity offering 1.5
Pro forma weighted average diluted shares 92.1
Pro forma adjusted EPS $ 1.93
Reconciliation of Pro Forma Adjusted
Earnings per Share Avient
Special
Items
Adjusted
Clariant MB
Pro Forma
Adjustments(1)
Pro Forma
Adjusted
Sales $ 2,862.7 $ — $ 2,862.7 $ 1,118.6 $ 3,981.3
Operating income $ 156.8 $ 71.7 $ 228.5 $ 72.9 $ 301.4
Interest expense, net (59.5) — (59.5) (33.4) (92.9)
Other income, net 12.1 (10.0) 2.1 — 2.1
Income taxes (33.7) (5.9) (39.6) (9.1) (48.7)
Net income attributable to noncontrolling
interests (0.2) — (0.2) — (0.2)
Net income from continuing operations
attributable to Avient shareholders $ 75.5 $ 55.8 $ 131.3 $ 30.4 $ 161.7
Weighted average diluted shares 77.7
Impact to diluted shares from January 2020 equity offering 15.3
Pro forma weighted average diluted shares 93.0
Pro forma adjusted EPS $ 1.74
Return on Invested Capital
December 31, 2006
Short term debt $ 5.2
Current portion of long term debt 22.5
Long term debt 567.7
Shareholder's equity 574.5
Invested capital $ 1,169.9
Cash 66.2
Current invested capital (net) $ 1,103.7
Adjusted operating income 87.5
Current tax rate 0.33
Return on invested capital 5.3 %
December 31,
Reconciliation to Enterprise Value / Adjusted EBITDA 2011 2016
Net income from continuing operations – GAAP $ 172.6 $ 165.0
Income tax expense 26.1 57.3
Interest expense 33.7 59.8
Depreciation and amortization from continuing operations 57.5 105.9
EBITDA $ 289.9 $ 388.0
Special items, before tax (46.7) 35.3
SunBelt equity income (5.7) —
Depreciation and amortization included in special items — (5.4)
Adjusted EBITDA $ 237.5 $ 417.9
Enterprise value(2) $ 1,542.0 $ 3,763.0
Enterprise value / adjusted EBITDA 6.5 9.0
(2) - Enterprise value is defined as market capitalization plus net debt
AVNT 2021 Investor Day adfa.pdf
AVNT 2021 Investor Day.pdf
AVNT 2021 Investor Day.pdf
AVNT 2021 Investor Day - Final.pdf
2021 Investor Day Recs v3 12.2 (002).pdf