https://www.avient.com/sites/default/files/2022-02/AVNT Q4 2021 Earnings Presentation_0.pdf
FX)
2022 GROWTH PROJECTIONS
19
$3.05
$3.50
2021 2022E
Full Year – Adjusted EPS
+ 15%
(+ 17% excluding FX)
$0.89
$0.95
2021 2022E
Q1 – Adjusted EPS
+ 7%
(+ 10% excluding FX)
($ millions) Q1 Full Year Q1 Full Year
2021 - Actual 1,162$ 4,819$ 123$ 429$
Sustainable Solutions 27 110 12 44
Healthcare 15 66 4 13
Composites (excl.Outdoor High Performance) 11 29 5 13
Outdoor High Performance Applications (7) (20) (4) (10)
Growth in Asia / LATAM 10 51 3 11
Other 57 115 9 12
Sub-total 1,275$ 5,170$ 152$ 512$
Wage Inflation and Overtime (12) (18)
Other Supply Chain Costs (4) (7)
FX Impact (25) (70) (4) (8)
Synergies 4 15
Travel, Other Employee Costs (1) (4)
2022 - Estimated 1,250$ 5,100$ 135$ 490$
Adjusted
2022 SALES AND OI – Q1 AND FULL YEAR
20
($ millions) 2021 2022E
Cash Flow from Operating Activities 234$ 385$
Less:
Run-Rate CapEx (86) (90)
CapEx for Clariant Integration (15) (20)
CapEx for IT System Upgrade - (25)
Total CapEx (101) (135)
Free Cash Flow 133$ 250$
Adjusted EBITDA 581$ 635$
Net Debt / Adjusted EBITDA 2.2x 1.8x
21
CASH FLOW / LEVERAGE
22
• Record results – highest level of sales ($4.8B) and earnings
($3.05 adjusted EPS) in company history
• Successful Clariant Color integration – net debt to adjusted
EBITDA reduced to 2.2x, one-year ahead of schedule
• Recognized as one of America’s Most Responsible Companies
by Newsweek
• Earned 3rd consecutive Great Place to Work certification
2021 HIGHLIGHTS
23
• 15% adjusted EPS growth to $3.50, led by growth in sustainable
solutions and increased synergy realization
• Continued strong synergy capture from the Clariant Color integration:
$75M anticipated run-rate synergies by the end of 2022
• Adjusted EBITDA of $635M represents 9% growth above 2021 –
11% excluding the impact of foreign currencies
• Deleveraged to 1.8x net debt to adjusted EBITDA by the end of 2022
2022 SUMMARY
PEER COMPARISONS
25
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Earnings Press Release_0.pdf
A recording of the webcast and the slide presentation will be available at
avient.com/investors/events-presentations immediately following the conference call and will be
accessible for one year.
Three Months Ended
March 31,
2024 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income from continuing operations attributable to Avient shareholders $ 49.4 $ 0.54 $ 20.8 $ 0.23
Special items, after-tax (Attachment 3) 5.5 0.06 22.3 0.24
Amortization expense, after-tax 14.9 0.16 15.1 0.16
Adjusted net income / EPS $ 69.8 $ 0.76 $ 58.2 $ 0.63
7
Attachment 2
Avient Corporation
Condensed Consolidated Statements of Income (Unaudited)
(In millions, except per share data)
Three Months Ended
March 31,
2024 2023
Sales $ 829.0 $ 845.7
Cost of sales 550.8 598.1
Gross margin 278.2 247.6
Selling and administrative expense 184.2 190.5
Operating income 94.0 57.1
Interest expense, net (26.6) (28.8)
Other (expense) income, net (0.9) 0.7
Income from continuing operations before income taxes 66.5 29.0
Income tax expense (16.8) (7.7)
Net income from continuing operations 49.7 21.3
Loss from discontinued operations, net of income taxes — (0.9)
Net income 49.7 20.4
Net income attributable to noncontrolling interests (0.3) (0.5)
Net income attributable to Avient common shareholders $ 49.4 $ 19.9
Earnings (loss) per share attributable to Avient common shareholders - Basic:
Continuing operations $ 0.54 $ 0.23
Discontinued operations — (0.01)
Total $ 0.54 $ 0.22
Earnings (loss) per share attributable to Avient common shareholders - Diluted:
Continuing operations $ 0.54 $ 0.23
Discontinued operations — (0.01)
Total $ 0.54 $ 0.22
Cash dividends declared per share of common stock $ 0.2575 $ 0.2475
Weighted-average shares used to compute earnings per common share:
Basic 91.2 91.0
Diluted 92.0 91.8
8
Attachment 3
Avient Corporation
Summary of Special Items (Unaudited)
(In millions, except per share data)
Special items (1)
Three Months Ended
March 31,
2024 2023
Cost of sales:
Restructuring costs, including accelerated depreciation $ 3.6 $ (6.6)
Environmental remediation costs (4.0) (1.4)
Impact on cost of sales (0.4) (8.0)
Selling and administrative expense:
Restructuring and employee separation costs (0.7) (11.3)
Legal and other (3.5) (4.4)
Acquisition related costs (1.6) (3.4)
Impact on selling and administrative expense (5.8) (19.1)
Impact on operating income (6.2) (27.1)
Other income (loss), net — (0.2)
Impact on income from continuing operations before income taxes (6.2) (27.3)
Income tax benefit on above special items 1.4 6.9
Tax adjustments(2) (0.7) (1.9)
Impact of special items on net income from continuing operations $ (5.5) $ (22.3)
Diluted earnings per common share impact $ (0.06) $ (0.24)
Weighted average shares used to compute adjusted earnings per share:
Diluted 92.0 91.8
(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 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, 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
https://www.avient.com/sites/default/files/2024-08/AVNT Second Quarter Earnings Press Release.pdf
A recording of the webcast and the slide presentation will be available at
avient.com/investors/events-presentations immediately following the conference call and will be
accessible for one year.
Three Months Ended
June 30,
2024 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income from continuing operations attributable to Avient shareholders $ 33.6 $ 0.36 $ 22.1 $ 0.24
Special items, after-tax (Attachment 3) 21.8 0.24 19.6 0.21
Amortization expense, after-tax 14.8 0.16 16.2 0.18
Adjusted net income / EPS $ 70.2 $ 0.76 $ 57.9 $ 0.63
Six Months Ended
June 30,
2024 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income from continuing operations attributable to Avient shareholders $ 83.0 $ 0.90 $ 42.9 $ 0.47
Special items, after-tax (Attachment 3) 27.3 0.30 41.9 0.46
Amortization expense, after-tax 29.7 0.32 31.3 0.34
Adjusted net income / EPS $ 140.0 $ 1.52 $ 116.1 $ 1.27
8
Attachment 2
Avient Corporation
Condensed Consolidated Statements of Income (Unaudited)
(In millions, except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024 2023 2024 2023
Sales $ 849.7 $ 824.4 $ 1,678.7 $ 1,670.1
Cost of sales 592.1 583.7 1,142.9 1,181.8
Gross margin 257.6 240.7 535.8 488.3
Selling and administrative expense 185.1 178.4 369.3 368.9
Operating income 72.5 62.3 166.5 119.4
Interest expense, net (26.6) (29.4) (53.2) (58.2)
Other (expense) income, net (0.9) (0.2) (1.8) 0.5
Income from continuing operations before income taxes 45.0 32.7 111.5 61.7
Income tax expense (11.2) (10.4) (28.0) (18.1)
Net income from continuing operations 33.8 22.3 83.5 43.6
Loss from discontinued operations, net of income taxes — — — (0.9)
Net income $ 33.8 $ 22.3 $ 83.5 $ 42.7
Net income attributable to noncontrolling interests (0.2) (0.2) (0.5) (0.7)
Net income attributable to Avient common shareholders $ 33.6 $ 22.1 $ 83.0 $ 42.0
Earnings (loss) per share attributable to Avient common shareholders - Basic:
Continuing operations $ 0.37 $ 0.24 $ 0.91 $ 0.47
Discontinued operations — — — (0.01)
Total $ 0.37 $ 0.24 $ 0.91 $ 0.46
Earnings (loss) per share attributable to Avient common shareholders - Diluted:
Continuing operations $ 0.36 $ 0.24 $ 0.90 $ 0.47
Discontinued operations — — — (0.01)
Total $ 0.36 $ 0.24 $ 0.90 $ 0.46
Cash dividends declared per share of common stock $ 0.2575 $ 0.2475 $ 0.5150 $ 0.4950
Weighted-average shares used to compute earnings per common share:
Basic 91.3 91.1 91.3 91.1
Diluted 92.2 91.9 92.0 91.9
9
Attachment 3
Avient Corporation
Summary of Special Items (Unaudited)
(In millions, except per share data)
Special items (1)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024 2023 2024 2023
Cost of sales:
Restructuring costs, including accelerated depreciation $ 0.2 $ (1.2) $ 3.8 $ (7.8)
Environmental remediation costs (21.8) (13.0) (25.8) (14.4)
Impact on cost of sales (21.6) (14.2) (22.0) (22.2)
Selling and administrative expense:
Restructuring and employee separation costs (2.8) (0.5) (3.5) (11.9)
Legal and other (2.3) (6.4) (5.8) (10.6)
Acquisition related costs (0.5) (0.7) (2.1) (4.2)
Impact on selling and administrative expense (5.6) (7.6) (11.4) (26.7)
Impact on operating income (27.2) (21.8) (33.4) (48.9)
Interest expense, net - financing costs (1.0) — (1.0) —
Other income (loss) 0.1 0.1 0.1 (0.1)
Impact on income from continuing operations before income taxes (28.1) (21.7) (34.3) (49.0)
Income tax benefit on above special items 7.0 5.5 8.4 12.4
Tax adjustments(2) (0.7) (3.4) (1.4) (5.3)
Impact of special items on net income from continuing operations $ (21.8) $ (19.6) $ (27.3) $ (41.9)
Diluted earnings per common share impact $ (0.24) $ (0.21) $ (0.30) $ (0.46)
Weighted average shares used to compute adjusted earnings per share:
Diluted 92.2 91.9 92.0 91.9
(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 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, 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
https://www.avient.com/sites/default/files/resources/PolyOne%2520Standard%2520Quality%2520Response_2016_6_9.pdf
There is one ISO 9001 certificate whose scope
covers 27 sites and support functions in North
America.
Yes – there is one quality manual for plants
registered to ISO 9001 in North America.
https://www.avient.com/sites/default/files/resources/PolyOne%25202011%2520Annual%2520Report.pdf
This past year was one marked by significant milestones
and record-breaking performance.
Our forward contracts have original
maturities of one year or less.
Awards granted in 2011 and 2010 vest in one-third increments
annually over a three-year service period.
https://www.avient.com/sites/default/files/resources/PolyOne%25202015%2520Annual%2520Report.pdf
We call it “One
PolyOne,” and it’s a theme and shift we’ve been pursuing since
2014.
The Base Rate is a fluctuating rate
equal to the greater of (i) the Federal Funds Rate plus one-half percent, (ii) the prevailing LIBOR Rate
plus one percent, and (iii) the prevailing Prime Rate.
One of Spartech’s subsidiaries, Franklin-Burlington
Plastics, Inc.
https://www.avient.com/sites/default/files/2024-03/Global Supplier Quality Manual_2024.pdf
Therefore, we expect our suppliers to have the same level of
commitment to quality and the customer-first mindset we place as one of our top priorities at
Avient.
1.2 Scope
Avient requires all suppliers to adopt this SQM and maintain a QMS which meets the minimum
requirements defined in this manual.
https://www.avient.com/sites/default/files/2024-08/Avient-2023-Sustainability-Report_5.pdf
Climate change continues to
be one of the defining issues of
our time, and at Avient, we are
dedicated to do our part.
However, no one company or country can solve the plastics waste problem.
For every submission received, we pledged to donate to One Tree Planted.
https://www.avient.com/sites/default/files/2024-08/Avient 2023 Sustainability Report_6.pdf
Climate change continues to
be one of the defining issues of
our time, and at Avient, we are
dedicated to do our part.
However, no one company or country can solve the plastics waste problem.
For every submission received, we pledged to donate to One Tree Planted.
https://www.avient.com/sites/default/files/resources/PolyOne%2520India%2520Terms%2520and%2520Conditions%2520of%2520Sale%2520of%2520Products.May%25202016.pdf
If a present or future law, governmental decree,
order, regulation, or ruling under any existing or future legislation prevents
Seller from increasing or revising the price as provided herein, or nullifies or
reduces any price or price increase hereunder, upon written notice from one to
the other Seller and Buyer will attempt to identify mutually agreeable
changes to conform this contract with such law, decree, order, regulation, or
ruling.