https://www.avient.com/sites/default/files/2020-08/avient-investor-presentation-jefferies-industrials-conference.pdf
Avient Corporation 1
JEFFERIES VIRTUAL
INDUSTRIALS
CONFERENCE
A U G U S T 2 0 2 0
Avient Corporation 2
FORWARD LOOKING STATEMENTS
Avient Corporation 3
USE OF
NON-GAAP
MEASURES
Avient Corporation 4
UPDATE ON THE
COVID-19 PANDEMIC
Avient Corporation 5
2019 Transportation Consumer
Discretionary
Healthcare Packaging All Other
Industries
Cost
Containment
FX 2020
$64.3 18%
16% 2%
$46.9
SECOND QUARTER 2020 IN REVIEW
Consumer
Discretionary
Avient Corporation 6
CLARIANT MASTERBATCH
STRATEGIC RATIONALE
Avient Corporation 7
FIT W I T H FOUR PILLAR S T R A T E G Y
Specialization
Globalization
Operational
Commercial
People
Avient Corporation 8
2006 2019E PF*
2006 2019E PF*
38%
* 2019E Pro Forma for PP&S Divestiture and Clariant Masterbatch business
Percentage of Total Revenue
E N D M A R K E T T R A N S F O R M A T I O N
Building & Construction High Growth End Markets
50%
22%
Avient Corporation 9
Electronic
38%
18%Transportation
Building &
Constrution
Electrial &
Electronic
2006 Pro Forma(1)
Net Sales by End Market
E N D M A R K E T T R A N S F O R M A T I O N
Avient Corporation 10
U N I F I E D F O C U S O N S U S T A I N A B I L I T Y
2006 - 2013
2013 – 2019
PEOPLE
PROD UC TS PLANET
PER FOR M A NC E
Avient Corporation 11
O V E R 8 5 % O F A D J U S T E D E B I T D A F R O M S P E C I A L T Y
46%
66%
0%
40%
60%
80%
100%
2005 2010 2015 Pro Forma
%
o
f
A
d
ju
s
te
d
E
B
IT
D
A
(
1)
JVs Performance Products & Solutions Distribution Specialty
87%
(2)
Avient Corporation 12
T H E N E W A V I E N T : A S P E C I A L T Y G R O W T H C O M P A N Y
Transaction expected to add $0.85 to pro forma adjusted EPS
Avient Corporation 13
SUSTAINABILITY AT AVIENT
P E O P L E , P R O D U C T S , P L A N E T , P E R F O R M A N C E
Avient Corporation 13
Avient Corporation 14
V I S I O N
To be the world’s
premier provider of
specialized polymer
materials, services and
C O R E
V A L U E S
P E R S O N A L
V A L U E S
Honesty IntegrityRespect
Operational
Commercial
Specialization
Globalization
Collaboration ExcellenceInnovation
To be the world’s
premier provider of
specialized polymer
materials, services
and sustainable
Avient Corporation 15
1.3
1.1 1.1
0.85
0.65
0.57
0.54
0.97
0.84
0.74 0.74
0.69
0.51
0.56
0.14
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
YTD
S A F E T Y F I R S T
Injuries per 100 Workers
Spartech
Acquisition
Avient Corporation 16
G R E A T P L A C E T O W O R K
Avient Corporation 17
C O M M O D I T Y T O S P E C I A L T Y T R A N S F O R M A T I O N
2006 - 2013 2013 – 20192000-2005 2006 - 2013
2020 and
Beyond
Avient Corporation 18
A V I E N T
2 0 1 9 R E V E N U E | $ 2 . 9 B I L L I O N
Segment End Market Geography
Wire & Cable
Building &
Electrical &
Electronics
Color
Additives
& Inks
34%
Distribution
41%
Specialty
Engineered
Materials
25%
United States
54%
Latin
America
Avient Corporation 19
Operating Income
% of Sales
Color, Additives &
Inks
1.7% 14.7%
Specialty Engineered
Materials
1.1% 11.6%
Distribution 2.6% 6.3%
2009 2010 2011 2012 2013 2014 2015 2016*2017* 2018
$2.43
P R O O F O F P E R F O R M A N C E
C O N S E C U T I V E
Y E A R S
10
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
$2.06
$2.21
A D J U S T E D E P S E X P A N S I O N
2018 2019
$1.69
$1.51
Avient Corporation 20
531
710
1,032
130
164
207
504
663
871
2014 2018 Pro Forma
R&D / Technical Marketing Sales
+ 34%
+ 26%
+ 32%
E X P A N S I O N O F COMMERCIAL RESOURCES D R I V I N G G R O W T H
Revenue in Billions
Total
+ 10%
Organic
+ 7%+ 45%
+ 26%
+ 31%
$4.0
$3.2
(2) (1) (1)
$2.9 $2.9
$3.5
2015 2016 2017 2018 Pro
Forma
Total
+ 9%
Organic
+ 5%
Pro Forma(2)
Avient Corporation 21
P R I O R A C Q U I S I T I O N S H I S T O R Y
Commercial
Resources(1)
Operating
Income
($ in millions)
Operating
Margins
256
350
$36
$100
Established Acquisitions
(> 7 years)
+ 37% + 176% + 1000 bps
Avient Corporation 22
A L I G N I N G W I T H T R E N D S F O R G R O W T H
T R A N S P O R T A T I O N P A C K A G I N G H E A L T H C A R E C O N S U M E R
Facilitate
alternative
energy
Light-
weighting
Reduce
packaging
materials
Improve
recyclability
Reduce
spread of
infection
Avient Corporation 23
I N N O V A T I O N
Customization
55%
M&A
30%
Innovation
Pipeline
Innovation comes from Research & Development Spend
Vitality Index
37%
$20
$51
Avient Corporation 24
R E V E N U E F R O M S U S T A I N A B L E S O L U T I O N S
$275M
$325M
$355M
$410M 14% Total Annual Growth
9% Organic Annual Growth
Avient Corporation 25
SEGMENT
HIGHLIGHTS
I N N O V A T I N G W I T H A V I E N T
Avient Corporation 25
Avient Corporation 26
C O L O R , A D D I T I V E S & I N K S
E N D M A R K E T S & S O L U T I O N S
Solid
Colorants
Performance
Additives
Screen
Printing Inks
Liquid
Colorants
31%
Building & Construction
Appliances
Electrical & Electronics
Avient Corporation 26
Avient Corporation 27
Operating Income & MarginRevenue by Region
C O L O R , A D D I T I V E S & I N K S
2 0 1 9 R E V E N U E | O V E R $ 1 B I L L I O N
34%
United
States
44%
Mexico
South
America
$4
$25
$104
$147
0.9%
5.5%
12.2%
14.7%
Avient Corporation 27
Avient Corporation 28
S P E C I A L T Y E N G I N E E R E D M A T E R I A L S
E N D M A R K E T S & S O L U T I O N S
Engineered
Formulations
Advanced
Composites
Thermoplastic
Elastomers
Wire & Cable*
28%
Electrical & Electronics
Building &
Construction
Avient Corporation 28
Avient Corporation 29
S P E C I A L T Y E N G I N E E R E D M A T E R I A L S
Revenue by Region Operating Income & Margin
2 0 1 9 R E V E N U E | $ 7 5 0 M I L L I O N
27%
United
States
54%
17%
$21
$57
$87
0.1%
5.1%
9.3%
11.6%
Avient Corporation 29
Avient Corporation 30
D I S T R I B U T I O N
E N D M A R K E T S & S U P P L I E R S
28%
17%
Electrical &
Electronics
Building &
Operating Income & Margin2019 Revenue | $1.2 Billion
$25
$63
$75
$20
2.9%
4.0%
5.9%
6.3%
Avient Corporation 30
http://www.avient.com/Pages/VariationRoot.aspx
Avient Corporation 31
O V E R V I E W O F R A W M A T E R I A L P U R C H A S E S
Avient Corporation 31
Avient Corporation 32
Avient Corporation 33
Adjusted EPS attributable to PolyOne common shareholders is calculated as follows:
2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016** 2017** 2018 2018***
Q1
2019*** 2019
Q1
2020
Net income from continuing operations attributable to PolyOne
common shareholders
Joint venture equity earnings, after tax
Special items, before tax
Special items, tax adjustments
Adjusted net income from continuing operations attributable to
PolyOne common shareholders
$ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6 $ 166.4 $ 173.5 $ 161.1 $ 87.7 $ 22.4 $ 75.5 $ 33.1
(19.0) (14.7) (3.7) — — — — — — — — — — —
(48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 23.8 32.9 59.5 58.7 12.2 61.7 9.6
(27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (15.9) (24.8) (25.3) (25.1) (1.2) (5.9) (1.0)
$ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 174.3 $ 181.6 $ 195.3 $ 121.3 $ 33.4 $ 131.3 $ 41.7
Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1 80.4 80.4 78.2 77.7 86.7
Adjusted EPS attributable to PolyOne common shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.06 $ 2.21 $ 2.43 $ 1.51 $ 0.43 $ 1.69 $ 0.48
* Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principle, discontinued operations or the related resegmentation.
** Pro forma for sale of Designed Structures and Solutions segment (DSS).
*** Pro forma for sale of Performance Products and Solutions segment (PP&S).
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520Sidoti%2520wNonGAAP%2520Rec.pdf
Page 2
Use of Non GAAP Measures
• This presentation includes the use of both GAAP (generally accepted accounting
principles) and non‐GAAP financial measures.
EPS: $2.50
Assumptions
• High single digit organic
revenue CAGR
• Operating margins in mid range
of 2015 targets
• No global recession• No global recession
• No investment in incremental
PP&S capacity
• Completion of 2‐3 midsize
accretive acquisitions
• No divestitures
• Housing starts at 85% of 50 year
norm by 2015
R i f t bl b l 3X N t
2012
$ • Remain comfortably below 3X Net
Debt / EBITDA
Page 13
Rev: $3.0B
Adj.
EPS: $1.20
Proforma Debt Maturities & Liquidity Summary – 12/31/12
(Reflecting Financing & Spartech Acquisition)
• Total Debt at 12/31/12
h
$1,010
$297
$360 $300
$400
Debt Maturities
As of December 31, 2012
($ millions)
Less: Cash
Net Debt
213
$797
$50
$297
$100
$200
• Available Liquidity
Cash $213
$800 Debt Maturities
As of December 31, 2012
P f f 2/13 Fi i
$50 $0
2015 2017 2020
Interest Rates: 7.500% 5.000% 7.375%
Cash
ABL Availability
Total Liquidity
$213
271
$484
$600
$400
$600
Proforma for 2/13 Financing
($ millions)
Total Liquidity
• Net Debt / EBITDA = 2.0x*
$484
$50
$360
$0
$200
• Net Debt / EBITDA = 2.35x**
$50$0
2015 2020 2023
Page 14
Interest Rates: 7.500% 7.375% 5.250%
*Assumes $65 million of synergies related to Spartech acquistion
**Assumes no synergies related to Spartech acquistion
Use of Cash
Share DividendsOrganic
G Acquisitions
• Repurchased 1 2
Repurchase
• Introduced a
Dividends
• Expanding our
Growth
T t th t d
Acquisitions
• Repurchased 1.2
million shares in
2012
• 20.0 million
shares are
il bl f
• Introduced a
quarterly dividend
in Q1 2011 and
increased in Q1
2012 (25%) and
Q1 2013 (20%)
• Expanding our
sales, marketing,
and technical
capabilities is top
priority
• Investing in
• Targets that expand our:
• Specialty offering
• End market presence
• Geographic footprint
available for
repurchase under
the current
authorization
Q1 2013 (20%)
• Objective of
maintaining and
growing
Investing in
operational and
LSS initiatives
(including synergy
capture)
• CAPEX
• Synergy opportunities
• Adjacent material solutions
Proforma Cash Balance = $213M
N t D bt / EBITDA* 2 0X
CAPEX
Net Debt / EBITDA* = 2.0X
*Adjusted EBITDA assumes synergies related to the Spartech acquisition are realized at close; preliminary synergies estimated at $65M and are expected to be achieved over a 3-year period
Page 15
Why Invest In PolyOne?
https://www.avient.com/sites/default/files/2022-02/Q4 2021 Avient Earnings Release_0.pdf
The company noted
that GAAP EPS includes special items (Attachment 3), which impacted EPS in 2021 and 2020.
2
“I am extremely pleased to finish the year with another record quarter and report the highest level
of annual adjusted earnings we have ever achieved,” said Robert M.
Three Months Ended
December 31,
2021 2020
Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1)
Net income from continuing operations attributable to Avient shareholders $ 29.8 $ 0.32 $ 74.2 $ 0.81
Special items, after tax (Attachment 3) 24.0 0.26 (26.7) (0.29)
Adjusted net income / EPS - excluding special items $ 53.8 $ 0.58 $ 47.5 $ 0.52
(1) Per share amounts may not recalculate from figures presented herein due to rounding
Year Ended
December 31,
2021 2020
Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1)
Net income from continuing operations attributable to Avient shareholders $ 230.8 $ 2.51 $ 132.0 $ 1.46
Special items, after tax (Attachment 3) 50.0 0.54 24.8 0.27
Adjusted net income / EPS - excluding special items $ 280.8 3.05 $ 156.8 1.73
(1) Per share amounts may not recalculate from figures presented herein due to rounding
8
Attachment 2
Avient Corporation
Condensed Consolidated Statements of Income (Unaudited)
(In millions, except per share data)
Three Months Ended
December 31,
Year Ended
December 31,
2021 2020 2021 2020
Sales $ 1,201.5 $ 997.0 $ 4,818.8 $ 3,242.1
Cost of sales 948.4 744.1 3,719.2 2,457.8
Gross margin 253.1 252.9 1,099.6 784.3
Selling and administrative expense 179.1 187.9 718.4 595.0
Operating income 74.0 65.0 381.2 189.3
Interest expense, net (17.5) (19.3) (75.3) (74.6)
Other (expense) income, net (5.4) 11.7 (1.3) 24.3
Income from continuing operations before income taxes 51.1 57.4 304.6 139.0
Income tax (expense) benefit (22.2) 17.3 (74.0) (5.2)
Net income from continuing operations 28.9 74.7 230.6 133.8
Income (loss) from discontinued operations, net of income taxes — 0.1 — (0.4)
Net income 28.9 74.8 230.6 133.4
Net loss (income) attributable to noncontrolling interests 0.9 (0.5) 0.2 (1.8)
Net income attributable to Avient common shareholders $ 29.8 $ 74.3 $ 230.8 $ 131.6
Earnings per share attributable to Avient common shareholders - Basic:
Continuing operations $ 0.33 $ 0.81 $ 2.53 $ 1.47
Discontinued operations — — — (0.01)
Total $ 0.33 $ 0.81 $ 2.53 $ 1.46
Earnings per share attributable to Avient common shareholders - Diluted:
Continuing operations $ 0.32 $ 0.81 $ 2.51 $ 1.46
Discontinued operations — — — (0.01)
Total $ 0.32 $ 0.81 $ 2.51 $ 1.45
Cash dividends declared per share of common stock $ 0.2375 $ 0.2125 $ 0.8750 $ 0.8200
Weighted-average shares used to compute earnings per common share:
Basic 91.5 91.4 91.4 90.1
Diluted 92.4 92.1 92.1 90.6
9
Attachment 3
Avient Corporation
Summary of Special Items (Unaudited)
(In millions, except per share data)
Special items (1) Three Months Ended
December 31,
Year Ended
December 31,
2021 2020 2021 2020
Cost of sales:
Restructuring costs, including accelerated depreciation $ (6.0) $ (1.8) $ (14.6) $ (4.3)
Environmental remediation costs (0.5) (1.1) (22.9) (20.4)
Reimbursement of previously incurred environmental costs — — 4.5 8.7
Acquisition related costs 0.6 1.2 (0.6) (9.3)
Impact on cost of sales (5.9) (1.7) (33.6) (25.3)
Selling and administrative expense:
Restructuring, legal and other (4.2) (13.0) (5.9) (22.5)
Acquisition earn-out adjustments — 1.5 — (1.0)
Acquisition related costs (1.1) (1.4) (8.3) (24.9)
Impact on selling and administrative expense (5.3) (12.9) (14.2) (48.4)
Impact on operating income (11.2) (14.6) (47.8) (73.7)
Costs related to committed financing in interest expense, net — — — (10.1)
Other income, net — 0.1 0.1 0.4
Pension settlement/curtailment and mark-to-market adjustment (loss) gain (9.4) 10.3 (9.4) 17.2
Impact on income from continuing operations before income taxes (20.6) (4.2) (57.1) (66.2)
Income tax benefit (expense) on above special items 4.1 (1.3) 13.0 14.1
Tax adjustments(2) (7.5) 32.2 (5.9) 27.3
Impact of special items on net income from continuing operations
attributable to Avient Shareholders $ (24.0) $ 26.7 $ (50.0) $ (24.8)
Diluted earnings per common share impact of special items on net income
from continuing operations attributable to Avient shareholders $ (0.26) $ 0.29 $ (0.54) $ (0.27)
Weighted average shares used to compute adjusted earnings per share:
Diluted 92.4 92.1 92.1 90.6
(1) Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt
extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel
reduction programs, plant realignment costs, executive separation agreements; asset impairments; settlement gains or losses and mark-to-
market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation
costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the
divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or disposals; results
of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the
performance period; one-time, non-recurring items; and the effect of changes in accounting principles or other such laws or provisions affecting
reported results
Reconciliation of Pro Forma Adjusted Earnings per Share:
Year Ended
December 31, 2020
Net income from continuing operations attributable to Avient shareholders $ 132.0
Special items, after tax 24.8
Adjusted net income from continuing operations excluding special items 156.8
Clariant Color pro forma adjustments to net income from continuing operations(2) 20.7
Pro forma adjusted net income from continuing operations attributable to Avient
shareholders $ 177.5
Weighted average diluted shares 90.6
Pro forma impact to diluted shares from January 2020 equity offering(2) 1.5
Pro forma weighted average diluted shares 92.1
Adjusted EPS - excluding special items pro forma for Clariant Color acquisition $ 1.93
Year Ended
December 31, 2020
Sales $ 3,242.1
Clariant Color pro forma adjustment to sales(2) 540.4
Pro forma sales $ 3,782.5
(2) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
15
Reconciliation of Earnings Before Interest, Taxes, Depreciation
and Amortization (EBITDA) by Segment
Three Months Ended
December 31,
Year Ended
December 31,
2021 2020 2021 2020
Operating income:
Color, Additives and Inks $ 61.2 $ 57.5 $ 303.1 $ 180.8
Specialty Engineered Materials 28.8 30.4 132.0 94.4
Distribution 21.7 18.0 93.2 69.5
Corporate and eliminations (37.7) (40.9) (147.1) (155.4)
Operating income $ 74.0 $ 65.0 $ 381.2 $ 189.3
Items below OI in Corporate:
Other income, net $ (5.4) $ 11.7 $ (1.3) $ 24.3
Depreciation & amortization:
Color, Additives and Inks $ 26.4 $ 27.3 $ 105.7 $ 75.1
Specialty Engineered Materials 8.0 7.4 31.7 30.0
Distribution 0.2 0.3 0.8 0.7
Corporate and eliminations 3.6 2.8 7.7 9.3
Depreciation & Amortization $ 38.2 $ 37.8 $ 145.9 $ 115.1
EBITDA:
Color, Additives and Inks $ 87.6 $ 84.8 $ 408.8 $ 255.9
Specialty Engineered Materials 36.8 37.8 163.7 124.4
Distribution 21.9 18.3 94.0 70.2
Corporate and eliminations (39.5) (26.4) (140.7) (121.8)
EBITDA $ 106.8 $ 114.5 $ 525.8 $ 328.7
16
Reconciliation of Pro Forma Sales, Operating Income and EBITDA - Color, Additives and Inks
Year Ended
December 31, 2020
Sales:
Color, Additives and Inks $ 1,502.9
Clariant Color pro forma adjustments(2) 540.4
Pro forma sales $ 2,043.3
Operating income:
Color, Additives and Inks $ 180.8
Clariant Color pro forma adjustments(2) 45.0
Pro forma operating income $ 225.8
Depreciation & amortization:
Color, Additives and Inks $ 75.1
Clariant Color pro forma adjustments(2) 30.1
Pro forma depreciation & amortization $ 105.2
EBITDA:
Color, Additives and Inks $ 255.9
Clariant Color pro forma adjustments(2) 75.1
Pro forma EBITDA $ 331.0
(2) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
Three Months Ended
December 31,
Year Ended
December 31,
Reconciliation to EBITDA and Pro Forma Adjusted EBITDA: 2021 2020 2021 2020
Net income from continuing operations – GAAP $ 28.9 $ 74.7 $ 230.6 $ 133.8
Income tax expense (benefit) 22.2 (17.3) 74.0 5.2
Interest expense 17.5 19.3 75.3 74.6
Depreciation and amortization from continuing operations 38.2 37.8 145.9 115.1
EBITDA $ 106.8 $ 114.5 $ 525.8 $ 328.7
Special items, before tax 20.6 4.2 57.1 66.2
Interest expense included in special items — — (10.1)
Depreciation and amortization included in special items (1.6) (0.7) (1.7) (3.2)
Adjusted EBITDA $ 125.8 $ 118.0 $ 581.2 $ 381.6
Clariant Color pro forma adjustments(2) — — — 75.1
Pro forma adjusted EBITDA $ 125.8 $ 118.0 $ 581.2 $ 456.7
(2) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
17
Net Debt Calculation December 31, 2021
Total long-term debt, net $ 1,850.3
Unamortized discount and debt issuance cost 14.4
Short-term and current portion of long term debt 8.6
Total debt $ 1,873.3
Cash (601.2)
Net debt $ 1,272.1
NEWS RELEASE
Attachment 1