https://www.avient.com/sites/default/files/2022-04/Avient Acquisition of Dyneema and Q1 2022 Results_0.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
• The time required to consummate the acquisition of the Dyneema business, the satisfaction or waiver of conditions in the purchase agreement, the ability to obtain required regulatory or other third-party approvals and consents and
otherwise consummate the proposed acquisition of the Dyneema business;
• Our ability to achieve the strategic and other objectives relating to the proposed acquisition of the Dyneema business and possible sale of the Distribution business;
• Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future;
• The effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks;
• The current and potential future impact of the COVID-19 pandemic on our business, results of operations, financial position or cash flows, including without any limitation, any supply chain and logistics issues;
• Changes in polymer consumption growth rates and laws and regulations regarding plastics in jurisdictions where we conduct business;
• Fluctuations in raw material prices, quality and supply, and in energy prices and supply;
• Production outages or material costs associated with scheduled or unscheduled maintenance programs;
• Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters;
• Our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends;
• Information systems failures and cyberattacks;
• Amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions; and
• Other factors described in our Annual Report on Form 10-K for the year ended December 31, 2021 under Item 1A, “Risk Factors.”
Outdoor High Performance) 8 18% 3
Growth in Asia / LATAM 6 3% 2
Other 100 19% 5
Sub-total $1,327 14% $146
Outdoor High Performance Impact (5) (3)
Wage Inflation and Overtime (11)
Other Supply Chain Costs (4)
Synergies 5
Incentives, Other Employee Costs 8
FX (28) (5)
Q1 2022 $1,294 11% $136
Q1 2022 SALES AND OPERATING INCOME
(TOTAL COMPANY)
6
Sales Growth Rate
Operating
Income$ millions
EBITDA
Q1 EBITDA BRIDGE
7
Price increases more than
offset raw material and
supply chain impacts
Q1 2021 $ 161
Demand (23)
$ millions
CAI:
Price / Mix 77
Inflation (54)
SEM:
Price / Mix 41
Inflation (26)
Distribution:
Price / Mix 84
Inflation (82)
Net Price Benefit 40
Wage Inflation and Overtime (11)
Other Supply Chain Costs (4)
Synergies 5
Incentives, Other Employee Costs 8
FX (5)
Q1 2022 $ 171
China Lockdowns / Russia Impact $ (7)
Transportation (7)
Outdoor High Performance (3)
Q1 EPS BRIDGE
8
Q1 2021 - Adjusted EPS 0.89$
CAI 0.08
Specialty Engineered Materials 0.06
Distribution 0.00
Corporate Costs 0.02
F/X (0.04)
Segment OI 0.12
Tax Rate (0.02)
Q1 2022 - Adjusted EPS 0.99$
10
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
11
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
12 Figures reflect 2022 expected sales
MIFOverview Competition Valuechain &
Go-to-market Strategy Innovation Financials
TECHNOLOGY
13
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
14
• 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
15
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
16
• 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 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(2)
• Continued investment in aquaculture as a sustainable food source(3)
• 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) “Global Wind Report 2021”, Global Wind Energy Council
(3) “Aquaculture Supports a Sustainable Earth”, NOAA Fisheries
17
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
18
AVIENT’S COMPOSITES PORTFOLIO
SALES AND EBITDA
19
$74 $84
$216 $212
$261
$5 $10
$32
$41
$49
$180
0
50
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
21
$21
$57
$69
$94
$105
0
50
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
22
- $1.48B net purchase price
- Represents 11.4x expected 2022 EBITDA
- Committed financing in place
- Permanent financing to be combination of available cash on-hand, new
Senior Unsecured Notes, new Senior Secured Term Loan
- Potential proceeds from Distribution divestment could be used to pay down
near-term maturing debt
- Closing expected in second half of 2022, subject to regulatory
approvals and certain customary closing conditions
Transaction
Value
Financing
Closing
Conditions /
Timing
CAPITAL STRUCTURE / LEVERAGE
23
• Financing commitments secured from Morgan Stanley
and J.P.
Morgan
• New Senior Secured Term Loan B and new Senior
Unsecured Notes
• Potential proceeds from sale of Distribution business
modeled to pay off 5.25% senior notes due 2023 and
Term Loan
• Acquisition aligned with Avient’s track record of
disciplined capital allocation policy
• Existing dividend policy maintained, focus on
deleveraging in the near term
(1) Pro forma for the acquisition of Dyneema® and potential divestiture of Distribution,
including repayment of senior notes due 2023 and Term Loan
Cash and Cash Equivalents 595$
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 $M)
TWO-YEAR LEVERAGE GOAL
24
3.5x
2.7x
1.7x
2.9x
2.5x
2.2x
2019PF 2020PF 2022E 2022PF 2023E 2024E
Dyneema® AcquisitionClariant Color Acquisition
(1) Pro forma for the acquisition of the Clariant Color business
(2) Pro forma for the acquisition of Dyneema® and potential divestiture of
Distribution, including repayment of senior notes due 2023 and Term Loan
(1) (1) (2)
25
PRO FORMA MODELING
2022E Pro Forma Pro Forma
($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
27
Commercial
Resources(1)
Operating Margins
259
360
$40
$122
9%
21%
Established Acquisitions
(> 7 years)
+ 39% + 210% + 1200 bps
(1) Commercial Resources include associate headcount in R&D / Technical, Marketing and Sales
CLARIANT COLOR ACQUISITION
28
$133
$205
2019PF 2021
28
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.
https://www.avient.com/sites/default/files/2020-07/avient-abac-spanish-spain-200720.pdf
Aunque las leyes individuales de cada país varían, estas
leyes hacen que sea ilegal participar en cualquier tipo
de corrupción o soborno y exigir a las empresas que
mantengan libros, registros y cuentas con detalles
razonables.
Señales de
alarma ante las que hay que estar alerta son:
• El tercero está ubicado o realiza actividades
comerciales en un país con elevados niveles de
corrupción
• Un cliente, proveedor o tercero
• Se opone a declaraciones contractuales sobre el
cumplimiento de las leyes ABAC
• Busca un contrato que limite la competencia
• Divide una compra en un grupo de compras
más pequeñas para evitar las aprobaciones que
exigen el Gobierno o la dirección de Avient
• Es propiedad o está gestionada por un
funcionario gubernamental o alguien
estrechamente relacionado con un funcionario
• Solicita ajustes en el precio en efectivo o no
contabilizados
• No está dispuesto a proporcionar detalles
necesarios para que Avient realice la diligencia
debida
• Un proveedor u otro tercero
• Solicita el pago en una cuenta bancaria personal
o extraterritorial
• Falta de experiencia con el producto, campo o
sector o personal cualificado
• Objeta a una declaración detallada del trabajo
Requisitos contables y de
mantenimiento de registros
De conformidad con la mayoría de las leyes ABAC, Avient
y sus filiales deben mantener libros y registros precisos y
detallados y un sistema adecuado de controles internos.
Puede realizar una consulta o
presentar una queja desde este sitio web o llamando a
la línea directa externa en cualquiera de los números de
teléfono específicos para el país que aparecen en el sitio
web.
https://www.avient.com/sites/default/files/2021-04/existencia-y-represnentacion-avient-colombia-sas.pdf
J)
Llevar la representación de firmas comerciales y/o industriales del
país y/o extranjero.
Garantizar las obligaciones de los
funcionarios de la compañía frente al tesoro público cuando estos
deban salir del país en ejercicio de funciones para la empresa; 10.
La verificación se puede realizar de manera
ilimitada, durante 60 días calendario contados a partir de la fecha de su expedición.
--------------------------------------------------------------------------------------------------
Por Documento Privado del 29 de diciembre de 2015 de Representante
Legal, inscrito el 6 de enero de 2016 bajo el número 02051006 del
libro IX, comunicó la sociedad matríz:
- CLARIANT PLASTICS & COATINGS AG
Domicilio: (Fuera Del País)
Presupuesto: Numeral 1 Artículo 261 del Código de Comercio
Que se ha configurado una situación de control con la sociedad de la
referencia.
https://www.avient.com/sites/default/files/2024-03/Terms and Conditions of Sale in Turkey.pdf
Alleged claims, if any, do not affect Buyer’s
obligation to pay for the conforming portion of the
Products delivered.
Buyer shall be
obliged to accept the Products and pay the rate
specified in the order confirmation for the quantity
of Products delivered by Seller.
Buyer’s failure to pay for the Products shall not
constitute a force majeure event hereunder.
13.
https://www.avient.com/sites/default/files/2024-03/Terms and Conditions of Sale for the Kingdom of Saudi Arabia.pdf
Alleged
claims, if any, do not affect Buyer’s obligation to pay for the conforming
portion of the Products delivered.
Buyer shall be obliged to accept the Products
and pay the rate specified in the order confirmation for the quantity of
Products delivered by Seller.
Buyer’s failure to pay for the Products shall not
constitute a force majeure event hereunder.
https://www.avient.com/sites/default/files/2024-12/Terms and Conditions of Sale for Chile %28English and Spanish Translation%29.pdf
Alleged claims, if any, do not affect
Buyer’s obligation to pay for the conforming portion
of the Products delivered.
Buyer shall be obliged
to accept the Products and pay the rate specified in
the order confirmation for the quantity of Products
delivered by Seller.
Buyer’s failure to pay for the Products
shall not constitute a force majeure event hereunder.
13.
https://www.avient.com/sites/default/files/2024-12/Terms and Conditions of Sale for Guatemala %28English and Spanish Translation%29.pdf
Alleged
claims, if any, do not affect Buyer’s obligation to
pay for the conforming portion of the Products
delivered.
Buyer shall be obliged to accept the
Products and pay the rate specified in the order
confirmation for the quantity of Products
delivered by Seller.
Buyer’s failure to pay for the Products shall not
constitute a force majeure event hereunder.
13.
https://www.avient.com/sites/default/files/resources/PolyOne_English-Thai_Terms_and_Conditions.pdf
Buyer will reimburse Seller for all
governmental, provincial, municipal, local or
other taxes (other than income taxes), excises
or charges, including superfund taxes and fees,
which Seller must pay in connection with the
manufacture and supply of the Product, but
only those amounts not already included in the
price at the commencement of this contract.
7.
Either party may suspend
performance hereunder (except to pay for the
Product already received) in the event of: (1)
acts of God, fire, explosion, flood, earthquake,
storms, or other natural disasters; (2) strikes,
lockouts or other industrial disturbances or
riots; (3) war, declared or undeclared, or acts
of terrorism; (4) compliance with any
governmental, provincial, municipal or
military law, regulation, order, or rule, foreign
or domestic, including priority, rationing,
allocation or preemption orders or regulations,
or cancellation of Seller’s or Buyer’s license to
operate its plant; (5) catastrophic failure of
facilities used to manufacture the Product,
interruption or shortage of transportation,
labor, power, fuel or raw materials; (6) total or
partial shutdown due to Seller’s plant
turnaround resulting from Items (1)-(5) above;
or (7) any other cause or causes of any kind or
character reasonably outside the control of the
party failing to perform, whether similar or
dissimilar from the enumerated causes (a
“force majeure”).
https://www.avient.com/sites/default/files/resources/Polyone%2520AR.pdf
Geon’s roots date back to 1927 when B.F.Goodrich scientist Waldo Semon produced the first
usable vinyl polymer.
In such event, we cannot assure
that we would have sufficient assets to pay debt then outstanding under the agreements governing our debt.
We began to receive floating rate interest
payments based upon one month U.S. dollar LIBOR and in return are obligated to pay interest at a fixed rate of 2.732%
until November 2022.
https://www.avient.com/sites/default/files/2024-09/Terms and Conditions of Sale for Germany.pdf
Alleged claims,
if any, do not affect Buyer’s obligation to
pay for the conforming portion of the
Products delivered.
Vorbehaltlich Klausel 4.1 haftet der
Verkäufer in keinem Fall für Schäden
und/oder Kosten aufgrund von
Lieferverzug.
9
9.5 Buyer shall be obliged to accept the
Products and pay the rate specified in the
order confirmation for the quantity of
Products delivered by Seller.
Alleged claims, if any, do not affect Buyer’s obligation to pay for the conforming portion of the Products delivered.