https://www.avient.com/sites/default/files/2022-02/AVNT Q4 2021 Earnings Presentation_0.pdf
Purchase price multiple rapidly declining on strength of
business and synergy capture
10
$133
$205
2019PF 2021
10
Clariant Color EBITDA Growth
Purchase Price Multiple
10.8x
7.0x
6.1x
2019PF 2021 2021 w/ Full
Synergies
(1)
(1)
11.9%
16.2%
2019PF 2021
EBITDA Margins
(1)
CLARIANT COLOR:
TRANSFORMATIONAL ACQUISITION
($ in millions)
(1) Financial information is pro forma to include a full year of Clariant Color business
($ millions)
Initial
Synergy
Estimate
2021
Synergy
Realization
Total
Synergies
Expected
Administrative $ 18 $ 29 $ 40
Sourcing 24 20 24
Operational 18 5 21
Total Synergies $ 60 $ 54 $ 85
C L A R I A N T C O LO R I N T E G R AT I O N &
C O S T S Y N ERG I E S U PDATE
11
• Integration going extremely well: synergy target increased to $85 million at December 9th Investor Day
• Relentless focus on guiding principles of safety first, employee collaboration and exceeding customer expectations
• Future revenue synergies are not part of these estimates and represent additional growth over the long term
S U S TA I NA B I L I T Y F O R A B ET T E R TO M O R ROW
12
• Revenue from sustainable solutions grew
16% in 2021 and expected to grow 8-12% in
2022 as our innovation efforts and
collaboration with customers accelerates
• Investments centered around innovation and
global sustainability megatrends
o Enabling a circular economy –
Technologies that allow for increased use of
post-consumer recycled (PCR) material and
improve recyclability of plastics
o Light-weighting – Composites and CAI
applications to reduce weight and material
requirements, which minimize energy and
carbon emissions
o Eco-Conscious – Health and human safety
applications as well as Avient’s alternative
materials to replace lead, PVC, halogens,
BPA and other less eco-friendly options
12
*Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”)
**2020 is Pro Forma to include full year of the Clariant Color business
12
2016 2017 2018 2019 2020PF** 2021
$405M
$455M
$550M
$790M
Revenue From Sustainable Solutions* 2016-2021
$915M
$340M
PEOPL E
C U L T U R E I S E V E R Y T H I N G
Community Service
7x Safer
than Industry Average
World-Class Safety
Leadership Development
Over $16 million
raised since 2010
Diversity & Inclusion
13
Q4 2020 $997 $80
Sustainable Solutions 23 12% 8
Healthcare 53 43% 9
Composites 7 22% 2
Growth in Asia / LATAM 14 10% 3
Other 118 23% 2
Sub-total $1,212 22% $104
Wage Inflation and Overtime (11)
Other Supply Chain Costs (4)
Synergies 9
Incentives, FX, Other Employee Costs (10) (13)
Q4 2021 $1,202 21% $85
Q4 2021 SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
14
Sales Growth Rate
Adjusted
Operating
Income$ millions
Adjusted
EBITDA
Q4 EBITDA BRIDGE
15
Price increases more than
offsets raw material and
supply chain impacts
Q4 2020 $ 118
Demand -
$ millions
CAI:
Price / Mix 62
Inflation (45)
SEM:
Price / Mix 25
Inflation (20)
Distribution:
Price / Mix 114
Inflation (109)
Net Price Benefit 27
Wage Inflation and Overtime (11)
Other Supply Chain Costs (4)
Synergies 9
Incentives, FX, Other Employee Costs (13)
Q4 2021 $ 126
Transportation (5)$
Outdoor High Performance (3)
Other 8
Total Demand -
Q4 2021 SEGMENT PERFORMANCE
16
CAI
$526
$581
Sales
($ in millions)
SEM Distribution
$58
$61
Operating Income
+ 11% + 6%
$305
$425
Sales
$18
$22
Operating Income
+ 39% + 22%
(1)
$191
$228
Sales
$30
$29
Operating Income
+ 19% - 3%
2 0 2 2 O U T L O O K
REVENUE GROWTH DRIVERS
Growth Drivers
Long-Term
Growth Rate
2022E
Growth Rate
Sustainable Solutions 8–12% 12%
Healthcare 8–10% 10%
Composites 10% 3%
Asia / LATAM 5% 6%
Other (GDP growth) 2–3% 2–3%
Avient 6.5% 6%
18
Excluding Outdoor High Performance 13%
(7.5% excl.
https://www.avient.com/sites/default/files/resources/PolyOne%25202017%2520Proxy%2520Statement.PDF
Jellison
Retired Vice President, Chief Financial Officff er of Stryker
Corporation, one of the world’s leading medical technology
companies.
PolyOne also benefitff s froff m h rer
experience and expertise in technology and varied endd
markets.
He is a proven leader, with deep and varied experience inn
technology and successful business operations.
https://www.avient.com/sites/default/files/2020-10/luxury-closures-gravi-tech-design-guide-2.0-application-specific.pdf
Any cavitation above four,
that exhibits unbalanced flow, is a candidate for
melt rotation technology .
Acknowledgments
Avient would like to acknowledge the gracious input provided by the faculty of the Behrend Plastics
Engineering Technology program at Penn State University .
https://www.avient.com/investor-center/news/polyone-announces-fourth-quarter-and-full-year-2017-results
Color has tremendous momentum heading into 2018 bolstered by the four bolt-on acquisitions we have completed over the last twelve months, adding to our specialty colorant technology portfolio and geographic presence."
https://www.avient.com/investor-center/news/polyone-announces-second-quarter-2018-results
As we discussed at our Investor Day in May, we are laying the foundation for sustainable long-term growth with our investments in sales, marketing and technology resources and our proven M&A strategy.
https://www.avient.com/investor-center/news/polyone-announces-second-quarter-2016-results
existing composite technologies under a new platform to be called PolyOne Advanced Composites, which will operate within the Specialty Engineered Materials segment.
https://www.avient.com/investor-center/news/avient-announces-record-third-quarter-2021-results
Unique technologies that improve the recyclability of products and enable recycled content to be incorporated, thus advancing a more circular economy
https://www.avient.com/news/polyone-announces-strong-third-quarter-2014-results
As we focus on helping our customers grow, we are not reluctant to replace existing business with new technology.
https://www.avient.com/company/sustainability/sustainability-report/reporting/gri
Avient Technologies—Products
https://www.avient.com/investor-center/news/polyone-announces-third-quarter-2016-results
Within the last year, we have acquired four excellent specialty businesses that bolstered our technology portfolio," Mr.