https://www.avient.com/company/sustainability/sustainability-report/products/markets/renewable-energy-case-study
Technology Highlights
Dyneema® DM20 high molecular weight polyethylene fibers are utilized in offshore wind turbine projects
Glasforms™ Pultrusion Technologies offer exceptional strength-to-weight ratio for continuous fiber reinforced composites for structural wind turbine components
https://www.avient.com/news/specialty-and-sustainable-healthcare-material-solutions-avient-medtec-china-2023
These materials can be suitable for gamma and autoclave sterilization methods and can be widely applied in aseptic filling, vaccine production and delivery systems, and high-purity water delivery and filtration systems.
Dyneema®, the world’s strongest fiber™, enables unmatched levels of performance and protection for end-use applications, including ballistic personal protection, marine and sustainable infrastructure and outdoor sports
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/avient-feature-specialty-sustainable-technologies-k-2022
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Avient to Feature Specialty & Sustainable Technologies at K 2022
Since then, Avient has become better together by combining with global industry leaders, including the recent addition of the Avient Protective Materials portfolio, including the Dyneema® brand, the world’s strongest fiber™.
New technologies Avient will feature at K 2022 include:
https://www.avient.com/sites/default/files/2021-04/edgetek-nylon-power-tool-case-study-one-pager.pdf
POWER TOOL
MANUFACTURER
P I S T O N R I N G A N D
C O N N E C T I N G R O D F O R
P O W E R T O O L
• Exceptional mechanical properties
• Good wear and abrasion resistance
• High purity and light weight
• Worked directly with the manufacturer from
design to molding to better understand and
satisfy key requirements
• Improved strength, stiffness and stability
with one-stop technology service to best
meet customer’s needs
• Provided lightweighting solution to help
customer achieve its sustainability goal
Edgetek™ PK PEEK Formulation
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/news/avient-showcase-world-s-strongest-fiber-and-high-performance-engineered-fibers-techtextil-2024
Fiber-Line™ composite yarns and Dyneema® fibers can be used to add strength and enhance protection in consumer applications, including workwear.
Dyneema®, the world’s strongest fiber™ – With its unique combination of low weight and immense strength, Dyneema® is a critical component in ultra-light outdoor gear, protective apparel, and footwear that takes performance and comfort to new heights.
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/industries/building-construction/outdoor-building-products
Pump Technologies
Siding Substrate, Capstock, Roofing Membranes, Plenum, Cellular Trim, Jacketing
Technologies
https://www.avient.com/news/avient-announces-new-sustainable-technology-packaging-showcases-award-finalist-entries-prse-2023
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Avient Announces New Sustainable Technology for Packaging – Showcases Award Finalist Entries at PRSE 2023
Avient will also be featuring its two Plastics Recycling Awards Europe Finalist solutions in the Product Technology Innovation of the Year category.
Dyneema®, the world’s strongest fiber™, enables unmatched levels of performance and protection for end-use applications, including ballistic personal protection, marine and sustainable infrastructure and outdoor sports
https://www.avient.com/sites/default/files/2022-04/Avient Acquisition of Dyneema and Q1 2022 Results_0.pdf
Avient also references “pro forma” financial metrics, which include the results of the proposed Dyneema acquisition.
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% $136
Q1 2022 SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
6
Sales Growth Rate
Adjusted
Operating
Income$ millions
Adjusted
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)
F I T W I T H F O U R P I L L A R S T R AT E G Y
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
DY N E E M A ® OV E RV I E W
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
Value chain &
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
P RO D U C T S
AVIE NT ’S E XIS T ING COM P OS IT E S P ORT F OL IO
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
AV I E N T ’ S C O M P O S I T E S P O RT F O L I O
S A L E S A N D E B I T DA
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
$680
($ in millions)
• 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®
(1)
D I S T R I BU T I O N D I V E S T I T U R E
C O N S I D E R AT I O N S
D I S T R I BU T I O N H I G H L I G H T S
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)
DY N E E M A ® T R A N S AC T I O N OV E RV I E W
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
C A P I TA L S T RU C T U R E / L E V E R AG E
23
• Financing commitments secured from Morgan Stanley
and J.P.
Financials are pro forma for the acquisition of Dyneema® and potential divestiture of Distribution
Avient Specialty
Formulators
Other Specialty /
Chemical Companies
30
CULTURE AND PEOPLE
31
O U R S P E C I A LT Y J O U R N E Y C O N T I N U E S
32
• Dyneema® brings leading technology and brand with the World’s
Strongest Fiber™, deep history of application development and
strong management team focused on specialty applications
• Dyneema® transaction is aligned with our previously stated acquisition
goal of expanding our composites and fiber capabilities
• Similar to our other technology expansion acquisitions, Dyneema®
allows us to leverage our invest-to-grow strategy
• We plan to explore a possible sale of our Distribution business.
https://www.avient.com/news/archives?page=18
Avient Announces New Sustainable Technology for Packaging – Showcases Award Finalist Entries at PRSE 2023
Avient to Debut Dyneema® Fiber at JEC World 2023
Avient to debut Dyneema® Fiber at JEC World 2023
To download a high-resolution image, please click here: FOR MEDIA USE ONLY
PARIS, Fran
https://www.avient.com/news/avient-unveils-colormatrix-aanchor-new-acetaldehyde-control-technology-pet-packaging
Avient Unveils ColorMatrix™ AAnchor™: New Acetaldehyde Control Technology for PET Packaging
The technology is compliant with European food contact regulations.
Dyneema®, the world’s strongest fiber™, enables unmatched levels of performance and protection for end-use applications, including ballistic personal protection, marine and sustainable infrastructure and outdoor sports