https://www.avient.com/sites/default/files/2024-12/2024 Avient Executive Bios_Giuseppe Di Salvo.pdf
He joined Avient in 2011 as Assistant Controller and later served as Director, Finance for
the company’s Global Color, Additives & Inks business segment.
https://www.avient.com/sites/default/files/2024-12/2024 Avient Executive Bios_Kristen Gajewski.pdf
Gajewski joined Avient in July 2013 from AkzoNobel/PPG and has since taken on multiple
roles with increasing responsibility within the Human Resources function, including HR
Director for Avient’s Color, Additives & Inks business segment, and an international assignment
with responsibility for the EMEA and India regions.
https://www.avient.com/sites/default/files/2024-12/2024 Avient Executive Bios_Holger Kronimus.pdf
Kronimus served as International Controller and Finance
Director as well as other positions of financial, commercial and plant management in Avient’s
Color, Additives & Ink business unit.
https://www.avient.com/sites/default/files/2022-02/Sustainability ESG Disclosures_Carbon Black.pdf
In plastics, paints, and inks carbon black is used as a color pigment.
USES AND APPLICATIONS
Colored printing inks, non-impact printing, coatings, paints and lacquers, plastics, spinning fibers, specials
applications; pigment, conductivity, reaction media, UV-filters.
https://www.avient.com/sites/default/files/resources/Investor%2520Day%2520-%2520May%25202012%2520-%2520Welcome%2520and%2520Introduction.pdf
Patterson
Global Color, Additives, and Inks John V.
Van Hulle
Agenda
Global Color, Additives, and Inks
ColorMatrix
John V.
https://www.avient.com/sites/default/files/2023-06/AVNT June IR Conferences w_Non GAAP Recs.pdf
&
Canada
EMEA
Asia
Latin America
64%
36%
Specialty
Engineered
Materials
Color
Additives
and Inks
40%
37%
18%
5%
6%
8%
24%
20%
10%
15%
9% 4% 4%
Defense
Healthcare
Packaging
Consumer
Building &
Construction
Industrial
Transportation
Energy Telecom
4
C R EAT I N G A WO R L D- C L A SS
S US TA I NA B L E ORG A N I ZAT I ON
1. 6.5% annualized long term sales
growth leveraging sustainable
solutions, composites, healthcare
and emerging regions
2.
GUIDANCE
( T O TA L C O M PA N Y )
12
14.8%
15.8%
Guidance Actual
Adjusted EBITDA Margin %
Better-than-expected margins
driven by:
• Resilient demand for
composites and sustainable
solutions which improved
mix of higher margin
applications
• Deceleration of raw material
inflation
• Cost reduction activities
Q1 EBITDA BRIDGE
( T O TA L C O M PA N Y )
13
$ millions
CAI:
Price / Mix 19)
Inflation (4)
SEM:
Price / Mix 6)
Inflation (4)
Net Price Benefit 17)
Wage and Energy Inflation (13)
Cost Reductions 8)
FX (6)
Q1 2023 Actual $134)
Adjusted
EBITDA
Q1 2022 Pro Forma $ 176)
Demand (48) • Weak demand
conditions in-line
with previous
expectations
• Pricing continues to
cover inflation of raw
materials, wages
and energy
U.S. & Canada
40%
EMEA
38%
Asia
17%
Latin America
5%
Q1 2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
Consumer
18%
Packaging
23%
Healthcare
7%
Industrial
16%
Building and
Construction
10%
Defense
6%Telecommunications
4%
Energy
5%
END MARKET REVENUE
(1) Total company sales and adjusted EBITDA of $846M and $134M, respectively, include intercompany sales eliminations and corporate costs
$537M $91M
$310M $64M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$134M$846M
(1)
14
Transportation
11%
Q1 2 023 SA LES BY R EGI ON
Y o Y C H A N G E ( E X C L .
Three Months Ended
March 31, 2023
Three Months Ended
March 31, 2022
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income from continuing operations attributable to Avient shareholders $ 20.8 $ 0.23 $ 64.4 $ 0.70
Special items, after tax 22.3 0.24 6.4 0.07
Amortization expense, after-tax 15.1 0.16 $ 10.8 $ 0.12
Adjusted net income / EPS $ 58.2 $ 0.63 $ 81.6 $ 0.89
Three Months Ended
March 31,
Reconciliation of Pro Forma Sales 2023 2022
Sales $ 845.7 $ 892.2
APM pro forma adjustments — 94.9
Pro forma sales $ 845.7 $ 987.1
1
Three Months Ended
March 31,
Reconciliation to EBITDA and Adjusted EBITDA: 2023 2022
Net income from continuing operations – GAAP $ 21.3 $ 64.7
Income tax expense 7.7 20.0
Interest expense, net 28.8 16.9
Depreciation and amortization 50.5 37.6
EBITDA from continuing operations $ 108.3 $ 139.2
Special items, before tax 27.3 6.7
Depreciation and amortization included in special items (1.8) (2.1)
Adjusted EBITDA $ 133.8 $ 143.8
Pro forma APM adjustments — 32.0
Pro forma adjusted EBITDA $ 133.8 $ 175.8
Pro forma adjusted EBITDA as a % of sales 15.8 % 17.8 %
Three Months Ended
March 31,
2023 2022
Sales:
Color, Additives and Inks $ 537.0 $ 649.5
Specialty Engineered Materials 309.7 243.1
Corporate (1.0) (0.4)
Sales $ 845.7 $ 892.2
Operating income:
Color, Additives and Inks $ 65.6 $ 94.5
Specialty Engineered Materials 43.1 38.3
Corporate (51.6) (30.6)
Operating income $ 57.1 $ 102.2
Depreciation & amortization:
Color, Additives and Inks $ 25.8 $ 26.0
Specialty Engineered Materials 21.2 7.8
Corporate 3.5 3.8
Depreciation & Amortization $ 50.5 $ 37.6
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 91.4 $ 120.5
Specialty Engineered Materials 64.3 46.1
Corporate (48.1) (26.8)
Other income (expense), net 0.7 (0.6)
EBITDA $ 108.3 $ 139.2
2
AVNT June IR Conferences w Non GAAP Recs.pdf
AVNT Q1 2023 Earnings Presentation.pdf
AVNT Q1 2023 Earnings Presentation
5.2 221pm IR Deck - AVNT-2023.03.31 (002).pdf
https://www.avient.com/sites/default/files/2023-02/AVNT Q4 2022 Earnings Presentation.pdf
$600 $592
2021 2022
$3.02 $3.04
2021 2022
FULL YEAR 2022 PERFORMANCE
( T O TA L C O M PA N Y P R O F O R M A )
15
Sales Adjusted EBITDA
$3,712 $3,653
2021 2022
- 2%
Adjusted EPS
- 1% + 1%
(in millions) (in millions)
(+ 4% excluding FX) (+ 5% excluding FX) (+ 9% excluding FX)
FULL YEAR 2022 SEGMENT PERFORMANCE
16
CAI
$2,402 $2,355
Sales
($ in millions)
$409 $402
EBITDA
SEM Pro Forma
$1,308 $1,300
Sales
$278 $272
EBITDA
(+ 4% excluding FX)
- 2% - 1%
(+ 5% excluding FX)
- 2%
(+ 4% excluding FX)
- 2%
(+ 2% excluding FX)
PRO FORMA FULL YEAR EPS BRIDGE
17
Pro Forma 2021 Adjusted EPS 3.02$
Foreign Currency (0.23)
Russia Import Sales (0.07)
Outdoor High Performance (0.13)
Color, Additives and Inks 0.18
Specialty Engineered Materials 0.24
Corporate Costs / Other 0.03
Pro Forma 2022 Adjusted EPS 3.04$
FULL YEAR EBITDA BRIDGE
( P R O F O R M A T O TA L C O M PA N Y )
18
$ millions
CAI:
Price / Mix 247
Inflation (176)
SEM:
Price / Mix 121
Inflation (77)
Net Price Benefit 115
Wage and Energy Inflation (47)
Clariant Color Integration Synergies 23
Incentives, Other Employee Costs 43
FX (34)
Full Year 2022 $592
Adjusted
EBITDA
Full Year 2021 $ 600
Demand (99)
Russia Import Sales (9) • Demand primarily impacted
by China lockdowns, 4th
quarter industrywide
destocking and declining
consumer sentiment
• Pricing outpaced inflation of
raw materials, wages and
energy
2 0 2 3 G U I D A N C E
$125
$530
Q1 FY
$0.55
$2.40
Q1 FY
2023 GUIDANCE
20
Sales Adjusted EBITDA
$845
$3,450
Q1 FY
Adjusted EPS
(in millions) (in millions)
CA SH FLOW / BALANCE SHEET
21
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Restructuring actions to
streamline operations and
improve profitability, primarily
in Europe
($ millions) 2023E
Cash Flow from Operating Activities 350$
Less:
Run-Rate CapEx (110)
CapEx for IT System Upgrade (25)
CapEx for Restructuring (15)
Total CapEx (150)
Free Cash Flow 200$
Adjusted EBITDA 530$
Net Debt / Adjusted EBITDA 2.9x
K E Y G R O W T H D R I V E R S
A N D T R A N S F O R M E D
P O R T F O L I O
GROW TH DR IVER S: PROV EN SUCC ESS
23 (1) Pro forma for the acquisition of Avient Protective Materials (APM)
COMPOSITES
$51
$84
$212
$668
2016 2018 2020 2022
Long Term Growth Rate
10%
Organic CAGR
10%
HEALTHCARE
$108 $113
$231
$293
2016 2018 2020 2022
Long Term Growth Rate
8-10%
Organic CAGR
11%
ASIA/EMERGING REGIONS
$265
$358
$726
$830
2016 2018 2020 2022
Long Term Growth Rate
5%
Organic CAGR
12%
$340
$455
$790
2016 2018 2020 2022
$1,175
SUSTAINABLE SOLUTIONS
Long Term Growth Rate
8-12%
Organic CAGR
11%
(1) (1)(1)
(Sales in $ millions)
#1 Color Formulator
Dyneema® - World’s Strongest
Fiber™
#1 in Composites applications
for outdoor high performance
#1 in Performance Inks
Customized solutions
140+ PhDs on staff
Rapid development of
innovative products
Extensive patent (2,500+)
portfolio
33% Vitality Index
Better-positioned toward stable,
high-growth end markets
Consumer, packaging,
healthcare and defense comprise
nearly 60% of sales
Agnostic to raw materials,
helping all customers achieve their
goals
Broad portfolio of diversified
sustainable solutions
90%+ of our innovation pipeline
invested in sustainable solutions
Long-term growth rate well
above GDP with expectations of
8-12%
L E V E R AG I N G O U R T R A N S F OR M E D PO RT F O L I O
24
Healthcare
8%
Packaging
24%
Consumer
20%
Building &
Construction
10%
Industrial
15%
Transportation
9%
Energy
4% Telecom.
4%
2022 PF
$3.65B
sales
Defense
6%
Leading Positions Sustainable SolutionsDiversified IndustriesSpecialty Formulator
(1) 2022 Pro forma for the acquisition of Avient Protective Materials
(2) 2020 Pro forma for the acquisition of Clariant Color
(1)(2)
(1)
$340M
$455M
$790M
2016 2018 2020PF 2022PF
$1,175M
P E E R C O M PA R I S O N S
AV I E N T I S A S SE T L I G H T
Capex / Revenue
2023E (%)
Avient Specialty
Formulators
Other Specialty /
Chemical Companies
Source: Peer data per Bloomberg as of February 13, 2023
Note: Avient reflects 2023 estimated revenue of $3,450 and estimated run-rate CAPEX of $110M.
27
3
2
3
3
4 4
3
4
5 5 5
6
7 7
A
vi
e
n
t
K
W
R
P
P
G
F
U
L
A
V
Y
R
P
M
F
M
C
H
U
N
H
X
L
C
E
E
C
L
A
S
H
S
C
L
E
M
N
F R E E C A S H F LOW C O N V E R S I O N
Source: Peer data per Bloomberg as of February 13, 2023
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
Avient 2011 and 2018 valuations reflect trailing 12 months EBITDA at December 31 of the respective years.
29
EV / 2023E EBITDA
Historic Multiple
6.5
8.3
10.0
15.6
13.9 13.7
12.8
9.5
18.0 17.5
12.3
10.2
9.7
8.8 8.4
5.9
A
vi
e
n
t
(2
0
1
1
)
A
vi
e
n
t
(2
0
1
8
)
A
vi
e
n
t
K
W
R
P
P
G
R
P
M
A
V
Y
F
U
L
H
X
L
E
C
L
F
M
C
A
S
H
S
C
L
H
U
N
E
M
N
C
E
SEGMENT DATA
U.S. & Canada
40%
EMEA
37%
Asia
18%
Latin America
5%
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
Consumer
20%
Packaging
24%
Industrial
15%
Building and
Construction
10%
Telecommunications
4%
Energy
4%
Defense
6%
END MARKET REVENUE
(1) Total company adjusted EBITDA of $592M includes corporate costs
$2,355M $402M
$1,300M $272M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$592M$3,653M
(1)
Transportation
9%
Healthcare
8%
31
C O L O R , A D D I T I V E S & I N K S
2 0 2 2 R E V E N U E | $ 2 . 4 B I L L I O N
US & Canada
34%
EMEA
38%
Asia
20%
Latin America
8%
END MARKET REGION
32
Packaging
34%
Consumer
21%
Healthcare
8%
Industrial
15%
Transportation
8%
Building &
Construction
11%
Telecommunications
1% Energy
2%
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
2 0 2 2 P R O F O R M A R E V E N U E | $ 1 . 3 B I L L I O N
END MARKET
US & Canada
52%
EMEA
35%
Asia
13%
REGION
33
Packaging
5%
Consumer
19%
Healthcare
8%Industrial
16%
Transportation
10%
Telecommunications
10%
Energy
9%
Defense
15%
Building &
Construction
8%
Packaging
32%
Consumer
27%
Healthcare
8%
Industrial
14%
Building &
Construction
5%
Telecommunications
3%
Energy
1% Defense
1%
Asia
(18% of sales)
Transportation
9%
2 0 2 2 P R O F O R M A AV I E N T R E G I O N A L S A L E S
B Y E N D M A R K E T
Packaging
27%
Consumer
14%
Healthcare
5%
Industrial
17%
Building &
Construction
10%
Energy
5%
Defense
8%
EMEA
(37% of sales)Transportation
11%
Packaging
13%
Consumer
24%
Healthcare
12%
Industrial
15%
Building &
Construction
13%
Energy
5%
Defense
5%
US &
Canada
(40% of sales)
Transportation
7%
Packaging
56%
Consumer
23%
Healthcare
4%
Industrial
7%
Building &
Construction
4%
Telecommunications
1%
LATAM
(5% of sales)
Transportation
5%
Telecommunications
3%
Telecommunications
6%
34
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Dollars in millions, except for per share data)
Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders
and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special
items, to assess performance and facilitate comparability of results.
Free Cash Flow Calculation
Year Ended
December 31,
2014 2015 2016 2017 2018 2019 2020 2021 2022
Cash provided by operating activities 208.4 227.2 221.3 202.4 253.7 300.8 221.6 233.8 398.4
Capital expenditures (92.8) (91.2) (84.2) (79.6) (76.0) (81.7) (63.7) (100.6) (105.5)
Payment of post-acquisition date
earnout liability — — — — — — 38.1 — —
Taxes paid on gain on divestiture — — — — — — — 142.0 — —
Adjusted Free Cash Flow $ 115.6 $ 136.0 $ — $ 137.1 $ 122.8 $ 177.7 $ 219.1 $ 338.0 $ 133.2 $ 292.9
3
Three Months Ended
December 31,
Year Ended
December 31,
2022 2021 2022 2021
Sales:
Color, Additives and Inks $ 490.8 $ 581.3 $ 2,355.0 $ 2,401.6
Specialty Engineered Materials 300.8 226.3 1,044.4 911.6
Corporate (1.2) (0.5) (2.5) 2.3
Sales $ 790.4 $ 807.1 $ 3,396.9 $ 3,315.5
Operating income:
Color, Additives and Inks $ 44.3 $ 61.2 $ 301.0 $ 303.1
Specialty Engineered Materials 35.2 27.1 140.1 125.5
Corporate (79.1) (38.1) (197.8) (148.9)
Operating income $ 0.4 $ 50.2 $ 243.3 $ 279.7
Other expense, net: $ (28.4) $ (5.3) $ (59.7) $ (1.0)
Depreciation & amortization:
Color, Additives and Inks $ 25.2 $ 26.5 $ 101.3 $ 105.7
Specialty Engineered Materials 20.3 7.9 48.7 31.7
Corporate 3.2 3.6 12.5 7.7
Depreciation & Amortization $ 48.7 $ 38.0 $ 162.5 $ 145.1
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 69.5 $ 87.7 $ 402.3 $ 408.8
Specialty Engineered Materials 55.5 35.0 188.8 157.2
Corporate (76.0) (34.5) (185.3) (141.2)
Other expense, net $ (28.4) $ (5.3) $ (59.7) $ (1.0)
EBITDA $ 20.6 $ 82.9 $ 346.1 $ 423.8
Special items in EBITDA 86.8 18.9 162.5 55.4
EBITDA - excluding special items $ 107.4 $ 101.8 $ 508.6 $ 479.2
APM pro forma adjustments - 2021 — 30.4 — 120.5
APM pro forma adjustments - 8 months 2022* — — 83.1 —
Pro forma EBITDA $ 107.4 $ 132.2 $ 591.7 $ 599.7
* Pro forma adjustment for January - August 2022 APM results (period before Avient ownership).
https://www.avient.com/sites/default/files/2023-03/AVNT Q2 2022 Earnings Presentation - Website Version.pdf
S E C O N D Q U A R T E R 2 0 2 2
R E S U L T S
$122
$134
2021 2022
$0.87
$0.98
2021 2022
Q2 2022 PERFORMANCE
( T O TA L C O M PA N Y )
4
Sales Adjusted Operating Income
$1,235
$1,302
2021 2022
+ 5%
Adjusted EPS
+ 10% + 13%
(in millions) (in millions)
(+ 10% excluding FX) (+ 16% excluding FX) (+ 20% excluding FX)
Q2 2022 SEGMENT PERFORMANCE
5
CAI
$624
$649
Sales
($ in millions)
SEM Distribution
$86
$94
Operating Income
+ 4% + 9%
$404
$443
Sales
$24
$27
Operating Income
+ 10% + 13%
(1)
$241 $244
Sales
$37 $37
Operating Income
+ 1% Flat
(+ 10% excluding FX) (+ 16% excluding FX) (+ 6% excluding FX) (+ 3% excluding FX)
Q2 2021 $1,235 $122
Sustainable Solutions 17 7% 7
Healthcare 23 14% 5
Composites (ex Outdoor High Performance) 10 20% 4
Growth in Asia / LATAM 5 3% 1
Other 69 11% 5
Sub-total $1,359 10% $144
Outdoor High Performance Impact (9) (5)
Wage Inflation and Overtime (7)
Other Supply Chain Costs (2)
Clariant Color Integration Synergies 7
Incentives, Other Employee Costs 4
FX (48) (7)
Q2 2022 $1,302 5% $134
Q2 2022 SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
6
Sales Growth Rate
Adjusted
Operating
Income$ millions
Adjusted
EBITDA
Q2 EBITDA BRIDGE
7
Price increases more than
offsets raw material and
supply chain impacts
Q2 2021 $ 159
Demand (29)
$ millions
CAI:
Price / Mix 87
Inflation (58)
SEM:
Price / Mix 36
Inflation (24)
Distribution:
Price / Mix 45
Inflation (41)
Net Price Benefit 45
Wage Inflation and Overtime (7)
Other Supply Chain Costs (2)
Clariant Color Integration Synergies 7
Incentives, Other Employee Costs 4
FX (7)
Q2 2022 $ 170
China Lockdowns / Russia Impact $ (14)
Outdoor High Performance (5)
Transportation (5)
8
Q2 '21 Adjusted EPS 0.87$
Color, Additives and Inks 0.11
Specialty Engineered Materials 0.01
Distribution 0.03
Corporate Costs 0.01
F/X (0.05)
Segment OI 0.11$
Interest Expense 0.03
Tax Rate (0.03)
Q2 '22 Adjusted EPS 0.98$
Q2 EPS BRIDGE
Key Updates
• Provided progress on 2030 Sustainability Goals
• Emphasized commitment to U.N.
Annual Purchases
RAW MATERIAL AND SUPPLY CHAIN UPDATE
Based on 2021 purchases, excludes Distribution business
SEGMENT DATA
U.S. & Canada
50%
EMEA
25%
Asia
16%
Latin America
9%
2021 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
Consumer
23%
Packaging
19%
Industrial
16%
Building and
Construction
10%
Telecommunications
4%
Energy
2%
END MARKET REVENUE
(1) Total company sales and adjusted EBITDA of $4,819M and $581M, respectively, include intercompany sales eliminations and corporate costs
$2,402M
$409M
$919M
$164M
$1,631M
$94M
Sales EBITDA
Distribution
Specialty Engineered Materials
Color Additives and Inks
$581M$4,819M
(1)
Transportation
11%
Healthcare
15%
24
Packaging
34%
Consumer
21%
Healthcare
8%
Industrial
16%
Building &
Construction
10%
Transportation
9%
Energy
1% Telecommunications
1%
C O L O R , A D D I T I V E S & I N K S
2 0 2 1 R E V E N U E | $ 2 . 4 B I L L I O N
US & Canada
32%
EMEA
40%
Asia
21%
Latin America
7%
END MARKET REGION
25
All charts reflect 2021 financials
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
Consumer
27%
Healthcare
10%
Packaging
7%
Telecommunications
16%
Transportation
11%
Industrial
11%
Building &
Construction
11%
Energy
7%
2 0 2 1 R E V E N U E | $ 9 1 9 M I L L I O N
END MARKET
US & Canada
55%
EMEA
25%
Asia
20%
REGION
26
All charts reflect 2021 financials
D I S T R I B U T I O N
Healthcare
26%
Consumer
23%
Packaging
5%
Industrial
20%
Transportation
16%
Building and
Construction
8%
Energy
1%
Telecommunications
1%
US & Canada
80%
Asia
3%
Latin
America
17%
END MARKET REGION
K E Y S U P P L I E R S
2 0 2 1 R E V E N U E | $ 1 . 6 B I L L I O N
27
All charts reflect 2021 financials
T O T A L C O M P A N Y R E G I O N A L S A L E S
B Y E N D M A R K E T
Packaging
30%
Consumer
26%Healthcare
13%
Industrial
14%
Building &
Construction
5%
Telecommunications
2% Energy
2%
Asia
(16% of sales)
Transportation
8%
Packaging
32%
Consumer
13%
Healthcare
5%
Industrial
17%
Building &
Construction
12%
Telecommunications
5%
Energy
4%
EMEA
(25% of sales)
Transportation
12%
28
Consumer
25%
Healthcare
19%
Packaging
10%
Industrial
17%
Building &
Construction
10%
Telecommunications
4%
Energy
2%
US &
Canada
(50% of sales)
Transportation
13%
Packaging
38%
Consumer
33%
Healthcare
8%
Industrial
10%
Building &
Construction
5%
Telecommunications
1%
LATAM
(9% of sales)
Transportation
5%
All charts reflect 2021 financials
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Dollars in millions, except for per share data)
Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders
and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special
items, to assess performance and facilitate comparability of results.
Three Months Ended
June 30, 2022
Three Months Ended
June 30, 2021
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income attributable to Avient shareholders $ 84.7 $ 0.92 $ 68.8 $ 0.74
Special items, after tax 5.1 0.06 11.7 0.13
Adjusted net income / EPS - excluding special items 89.8 0.98 80.5 0.87
FX adjustment n/a n/a $ (4.9) $ (0.05)
Adjusted net income / EPS - excluding special items, adjusted for FX $ 89.8 $ 0.98 $ 75.6 $ 0.82
Reconciliation to Consolidated Statements of Income Three Months Ended June 30,
2022 2021
Results Results
FX
Adjustment
FX Adjusted
Results
Sales:
Color, Additives and Inks $ 649.1 $ 624.4 $ (35.8) $ 588.6
Specialty Engineered Materials 243.9 240.6 (10.5) 230.1
Distribution 443.2 404.4 (0.2) 404.2
Corporate and eliminations (33.8) (34.2) (1.2) (35.4)
Sales $ 1,302.4 $ 1,235.2 $ (47.7) $ 1,187.5
Operating income:
Color, Additives and Inks $ 93.6 $ 86.3 $ (5.2) 81.1
Specialty Engineered Materials 36.6 37.3 (1.3) 36.0
Distribution 27.1 23.7 — 23.7
Corporate and eliminations (27.8) (39.2) 0.2 (39.0)
Operating income 129.5 108.1 (6.3) 101.8
Special items in operating income 4.3 14.2 — 14.2
Adjusted operating income $ 133.8 $ 122.3 $ (6.3) $ 116.0
1
Three Months Ended
June 30, 2022
Reconciliation to Condensed Consolidated Statements of Income
GAAP
Results
Special
Items
Adjusted
Results
Operating Income $ 129.5 $ 4.3 $ 133.8
Income before income taxes $ 114.7 $ 3.4 $ 118.1
Income tax expense - GAAP (30.0) — (30.0)
Income tax impact of special items — (0.8) (0.8)
Tax adjustments — 2.5 2.5
Net income attributable to noncontrolling interests — — —
Net income attributable to Avient shareholders $ 84.7 $ 5.1 $ 89.8
EPS $ 0.92 0.06 $ 0.98
Weighted-average diluted shares 92.1 92.1 92.1
Three Months Ended
June 30, 2021
Reconciliation to Condensed Consolidated Statements of Income
GAAP
Results
Special
Items
Adjusted
Results
Operating Income $ 108.1 $ 14.2 $ 122.3
Income before income taxes $ 89.8 $ 14.2 $ 104.0
Income tax expense - GAAP (20.4) — (20.4)
Income tax impact of special items — (3.4) (3.4)
Tax adjustments — 0.9 0.9
Net income attributable to noncontrolling interests (0.6) — (0.6)
Net income attributable to Avient shareholders $ 68.8 $ 11.7 $ 80.5
EPS $ 0.74 0.13 $ 0.87
Weighted-average diluted shares 92.4 92.4 92.4
Three Months Ended
September 30, 2021
Reconciliation to Condensed Consolidated Statements of Income
GAAP
Results
Special
Items
Adjusted
Results
Operating income $ 78.7 $ 20.0 $ 98.7
Income from continuing operations before income taxes $ 61.1 $ 19.9 $ 81.0
Income tax expense - GAAP (8.5) — (8.5)
Income tax impact of special items — (4.6) (4.6)
Tax adjustments — (3.6) (3.6)
Net income attributable to noncontrolling interests 0.3 — 0.3
Net income from continuing operations attributable to Avient shareholders $ 52.9 $ 11.7 $ 64.6
Net income / EPS $ 0.57 $ 0.13 $ 0.70
Weighted-average diluted shares 92.2 92.2 92.2
2
Reconciliation of EBITDA by Segment
Year Ended
December 31,
2021
Operating income:
Color, Additives and Inks $ 303.1
Specialty Engineered Materials 132.0
Distribution 93.2
Corporate and eliminations (147.1)
Operating income $ 381.2
Items below OI in Corporate:
Other income, net $ (1.3)
Depreciation & amortization:
Color, Additives and Inks $ 105.7
Specialty Engineered Materials 31.7
Distribution 0.8
Corporate and eliminations 7.7
Depreciation & Amortization $ 145.9
EBITDA:
Color, Additives and Inks $ 408.8
Specialty Engineered Materials 163.7
Distribution 94.0
Corporate and eliminations (140.7)
EBITDA $ 525.8
Three Months Ended
June 30,
Year Ended
December 31,
Reconciliation to EBITDA and Adjusted EBITDA: 2022 2021 2021
Net income from continuing operations – GAAP $ 84.7 $ 69.4 $ 230.6
Income tax expense 30.0 20.4 74.0
Interest expense 16.2 19.5 75.3
Depreciation and amortization from continuing operations 36.5 33.8 145.9
EBITDA $ 167.4 $ 143.1 $ 525.8
Special items, before tax 3.4 14.2 57.1
Depreciation and amortization included in special items (1.1) 1.4 (1.7)
Adjusted EBITDA $ 169.7 $ 158.7 $ 581.2
3
AVNT Q2 2022 Earnings Presentation - Website v2.pdf
AVNT Q2 2022 Earnings Presentation - Website.pdf
AVNT Q2 2022 Earnings Presentation - Website
AVNT Q2 2022 Earnings Presentation - Website
AVNT Q2 2022 Earnings Presentation - Website
7.25 323pm IR Deck - AVNT-2022.06.30.pdf
https://www.avient.com/sites/default/files/2024-08/AVNT Second Quarter Earnings Press Release.pdf
Consolidated sales expanded for
the first time in seven quarters with contributions from both our Color, Additives and Inks, and
Specialty Engineered Materials segments.
Three Months Ended
June 30,
Six Months Ended
June 30,
2024 2023 2024 2023
Sales:
Color, Additives and Inks $ 542.0 $ 524.5 $ 1,057.3 $ 1,061.5
Specialty Engineered Materials 308.1 300.8 622.5 610.5
Corporate (0.4) (0.9) (1.1) (1.9)
Sales $ 849.7 $ 824.4 $ 1,678.7 $ 1,670.1
Gross margin:
Color, Additives and Inks $ 184.5 $ 164.1 $ 355.7 $ 326.1
Specialty Engineered Materials 94.7 91.5 201.7 185.4
Corporate (21.6) (14.9) (21.6) (23.2)
Gross margin $ 257.6 $ 240.7 $ 535.8 $ 488.3
Selling and administrative expense:
Color, Additives and Inks $ 98.4 $ 96.1 $ 194.8 $ 192.5
Specialty Engineered Materials 51.9 51.8 105.5 102.6
Corporate 34.8 30.5 69.0 73.8
Selling and administrative expense $ 185.1 $ 178.4 $ 369.3 $ 368.9
Operating income:
Color, Additives and Inks $ 86.1 $ 68.0 $ 160.9 $ 133.6
Specialty Engineered Materials 42.8 39.7 96.2 82.8
Corporate (56.4) (45.4) (90.6) (97.0)
Operating income $ 72.5 $ 62.3 $ 166.5 $ 119.4
Depreciation & amortization:
Color, Additives and Inks $ 21.8 $ 25.7 $ 43.7 $ 51.5
Specialty Engineered Materials 20.8 19.9 40.4 41.1
Corporate 2.3 2.0 5.1 5.5
Depreciation & amortization $ 44.9 $ 47.6 $ 89.2 $ 98.1
Earnings before interest, taxes, depreciation and
amortization (EBITDA):
Color, Additives and Inks $ 107.9 $ 93.7 $ 204.6 $ 185.1
Specialty Engineered Materials 63.6 59.6 136.6 123.9
Corporate (54.1) (43.4) (85.5) (91.5)
Other (expense) income, net (0.9) (0.2) (1.8) 0.5
EBITDA from continuing operations $ 116.5 $ 109.7 $ 253.9 $ 218.0
Special items, before tax 28.1 21.7 34.3 49.0
Interest expense included in special items (1.0) — (1.0) —
Depreciation & amortization included in special items (0.3) (0.1) (0.8) (1.9)
Adjusted EBITDA $ 143.3 $ 131.3 $ 286.4 $ 265.1
13
Attachment 7
Avient Corporation
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(In millions, except per share data)
Senior management uses gross margin before special items and operating income before special items to assess performance
and allocate resources because senior management believes that these measures are useful in understanding current
profitability levels and how it may serve as a basis for future performance.
https://www.avient.com/sites/default/files/2023-09/Avient Sustainability Day 2023 - Website %289.19%29.pdf
Packaging and
Packaging Waste Directive)
RECYCLE SOLUTIONS
Sources: UN Environment Programme; Deloitte; McKinsey & Company;
European Commission: Environment
SOLVING CHALLENGES IN KEY END MARKETS
Avient Corporation 33
Transportation
Lightweighting
Recycle solutions
VOC reduction
Consumer
Recycle solutions
Lightweighting
Carbon footprint
Healthcare
Carbon footprint
Bio-based content
Eco-conscious
Packaging
Recycle solutions
Lightweighting
Food waste reduction
Sustainable
Infrastructure
Eco-conscious
Carbon footprint
Resource conservation
HOW AVIENT INNOVATION ENABLES SUSTAINABLITY
Avient Corporation 34
Solutions to increase recycled
content and minimize plastic waste
Solutions to reduce weight and
energy consumption
Solutions to preserve and protect
natural resources & human life
HOW WE ENABLE SUSTAINABILITY
Renew
Michael Garratt
Senior Vice President, President of Color, Additives and Inks – EMEA
Avient Corporation 35
RENEW
Avient Corporation 36
KEY CUSTOMER CHALLENGES:
• Meet Aggressive Sustainability Goals - While brand owners have made
strong, public sustainability commitments – many are currently trailing far
behind goals
• Develop Strategies to Minimize Plastic Waste - Plastic waste remains
a global priority with consumers and legislatures – forcing brand owners to
implement tangible mitigation strategies
• Increase Post Consumer Recycle (PCR) Utilization & Post
Consumer Recycle Availability - Increasing the use of PCR is far more
challenging than many companies had anticipated
• Meet Legislation Requirements - Legislatures are drafting financial
penalties for companies unable or unwilling to meet post-consumer recycled
content targets
Solutions to increase
recycled content and
minimize plastic waste
PLASTICS ARE PART OF THE SOLUTION
Avient Corporation 37
Source: Franklin Associates / American Chemistry Council
PLASTIC ALTERNATIVE PACKAGING (GLASS + ALUMINUM + PAPER)
2x More energy
3x More greenhouse gas emissions
5x More waste
6x More waterWater
Waste
Emissions
Energy
BRAND OWNER PROGRESS AGAINST COMMITMENTS
39%
29%
37%
16%
25%
11%
11%
6%
19%
7%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%
Brand Owner 1
Brand Owner 2
Brand Owner 3
Brand Owner 4
Brand Owner 5
Brand Owner 6
Brand Owner 7
Brand Owner 8
Brand Owner 9
Brand Owner 10
Percent Recycled Plastic Used
Progr ess through 2022
Gap t o r ea ch 2025 targets
Source: Ellen MacArthur Foundation 2022
Avient Corporation 38
Color
Management
Maintaining
Mechanical
Properties
Decontamination
Mono-Material
Construction
Consistent Quality
TOP 5 GAPS TO RECYCLE CONTENT UTILIZATION
Avient Corporation 39
Avient Corporation 40
Food & Beverage Packaging
2022 Revenue: $43M
Taste and Odor Management
ColorMatrix™ AAnchor Scavenger
• Improves recyclability
• Reduces regulatory risk from migration issues
75%
ACETALDEHYDE REDUCTION Recyclable Oxygen Barrier
ColorMatrix™ Capture ™ Oxygen Scavenger
• Protects recyclate - maintains clarity with no
discoloration
• Enables higher rPET content utilization
rPET UTILIZATION
Food & Beverage Packaging
2022 Revenue: $88M
PCR Performance Additives
ColorMatrix™ SmartHeat™
• Lowers energy use - CO2 Emissions
• Reduces yellowing and thermal instability
• Enables increased use of rPET
• Minimal impact on part color
35%
LOWER CARBON EMISSIONS
THINNER WALLS
Reduced Wall Thickness Packaging
ColorMatrix™ Ultimate™UV Light Barrier Stabilizer
Cesa™ Light Additives
• Protects ingredients from UV degradation
• Enables reduced wall thicknesses
• No negative effect on recycling
Increased Recycle Content
ColorMatrix™ Process Aid and Toner for
Recycled PET (rPET)
• Improves ability to recycle PET
• Enables higher percentages of recycled content
• Provides superior aesthetics
• Prevents degradation of physical properties
ENHANCES RECYCLING
Avient Corporation 41
Avient Corporation 42
Design for Recycling
CycleWorks™ Center for Mechanical Recycling
• Recycling trials and field testing
• Solutions evaluation and screening
• Customer collaboration
EXPANDS PCR USAGE
PCR Color Prediction Service
• Enables use of lower-quality PCR
• Predicts achievable colors
• Increases PCR utilization rates
• Helps brands to achieve PCR usage goals
85%
CONSUMERS:
CHOOSE BASED ON COLOR
CycleWorks™ Center
Milan, Italy
Additives for Recycling
2022 Revenue: $50M
Stabilization During Recycling
Cesa™ A4R Additives for Recycling
• Enables multi-loop recycling
• Stabilizes recyclate during processing
• Reduces discoloration, gels, and black spots
100%
PCR UTILIZATION
ENABLES
Personal Care Packaging
New Product
Avient Corporation 43
Bio-Based Phone Case
reSound™ OM BIO-based Thermoplastic Elastomers
• Derived from non-fossil-based raw materials
• Good property retention and UV resistance
• Easily colorable
40%
BIO-BASED CONTENT
Avient Corporation 44
High PCR Content Razor
reSound™ Recycled Thermoplastic Elastomers
• Excellent processability
• Easily colorable
62%
RECYCLE CONTENT
Consumer
2022 Revenue: $1M
Carbon Footprint Analysis
Carbon Footprint Mapping Service
• Provides input metrics for independent brand
carbon footprint calculations
• Aligns with a defined ISO standard, certified by
TUV Rhineland
ENABLES
CARBON AWARENESS
Avient Corporation 45
Consumer
2022 Revenue: $1M
Portable Power Station
Nymax™ Recycled Nylon
• Recycle content up to 60%
• Excellent weathering performance
• Reduces weight
60%
RECYCLE CONTENT
Swim Goggles
reSound™ BIO Thermoplastic Elastomers
• Easily colorable
• Performs like traditional TPE
35 - 70%
BIO-RENEWABLE CONTENT
Avient Corporation 46
Consumer
2022 Revenue: $3M
Off Road Vehicle Structural Components
Nymax™ REC Reinforced Nylon
• Replaces steel/aluminum
• Excellent fatigue resistance
INCORPORATES
RECYCLE CONTENT
CUSTOMER
TESTIMONIALS
Avient Corporation 47
“Avient’s bio-circular materials for our Biofuse 2.0 goggles are a real game changer that
will set Speedo apart from the competition - and will support our aim of reducing
environmental impact.”
CAFE: Corporate Average Fuel Economy
>50% Improvement
REDUCE – TAKEAWAY
Reducing Energy Consumption and Dependence on Fossil Fuels Drives Growth Projections
Examples
Covered
Today
45%
Other
Applications
55%
2022PF
$310M
38
46
CAFE1 Miles Per Gallon Proposed Requirements
HOW WE ENABLE SUSTAINABILITY
Preserve
Woon Keat Moh
Senior Vice President, President of Color, Additives and Inks –
Americas and Asia
Avient Corporation 61
PRESERVE
Avient Corporation 62
KEY CUSTOMER CHALLENGES:
• Preserving Key Natural Resources - Companies are being challenged to
mitigate high environmental impact processes such as water-intensive textile dyeing or
food spoilage
• Incorporating Renewable Materials - Adoption of bio-based raw materials
requires design and formulation expertise to overcome performance shortcomings of
neat resins
• Increasing Healthcare Regulations - Utilizing sustainable materials in
healthcare applications requires considerable support in navigating complex regulatory
requirements
• Increasing Regulatory Compliance - Non-Intentionally Added Substances
(NIAS) need to be controlled in sensitive applications
• Enabling Faster and More Reliable Connectivity – Substantial investments
in 5G infrastructure are required to unlock the potential of the Internet of Things
Solutions to preserve and
protect natural resources &
human life
Avient Corporation 63
Spin Dyed Precolor Textile Yarn
Renol™ Spin Dyeing Colorants
• Replaces water-based dye processes to reduce
waste creation
• Conserves water and energy
75%
LESS WATER
PROTECTIVE DENIM
Dyneema® Workwear Solutions
• Improves tear resistance 50-100%
• More protective than competitive alternatives
• Enables the amount of protective fiber to be
reduced without sacrificing performance
600%
IMPROVED ABRASION RESISTANCE
Clothing & Textiles
2022 Revenue: $49M
Avient Corporation 64
Low Cure Textile Inks
Avient Specialty Inks™ Low Cure Inks
• Decreases energy consumption
• Reduces scrap due to heat-related defects
SAVES ENERGY
Clothing & Textiles
2022 Revenue: $40M
BIO-BASED
FORMULATIONS
Water Based Textile Inks
Zodiac™ Aquarius™ Specialty Inks
• Incorporates bio-based materials
• Non-formaldehyde solutions available
• Reduces waste by enabling high open screen time
Avient Corporation 65
Mosquito Netting
Cesa™ Fiber Anti-Mosquito Additives
• Helps control malaria
• Protects consistently using a controlled
release of insecticide
• Expands access to healthcare
breakthroughs to global communities
ANNUAL NEW MALARIA CASES
200 Million
Antimicrobial Protection
Cesa™ WithStand™ Antimicrobial Additives
• Reduces microbial / mold growth
• Helps reduce odor, staining, discoloration
• Excellent comfort and wearability
• Chemical resistance - will not discolor
or degrade
REDUCES MICROBES
Human Health & Safety
2022 Revenue: $5M
Avient Corporation 66
Cut-Resistant Gloves
Dyneema® Solutions
• Incorporates bio-based materials
• Reduces carbon emissions
• Excellent wearability / comfort
WORK INJURIES
REDUCES
Rescue Rope
Dyneema® Solutions
• Superior strength-to-weight ratio
• High break load
• Extraordinary reliability
SAVES LIVES
Human Health & Safety
2022 Revenue: $106M
Body Armor
Dyneema® Protective Solutions
• Exceptional trauma protection
• Excellent wearability
LIGHTER
THAN ARAMID FIBER
35%
Avient Corporation 67
40%
BIO-DERIVED
Pharmaceutical Tubing
Versaflex™ Healthcare Pharma Tubing Formulations
NEU™ Specialty Engineered Materials
• Facilitates incorporation of sustainable materials
with healthcare device manufacturers
• Eliminates vulcanization processes
Medical
2022 Revenue: $40M
NON-PHTHALATE
Respiratory Conduit
Versaflex™ Healthcare Corrugated
Tubing Formulations
• Non-Phthalate
• ISO 10993 & USP Class VI compliant
Avient Corporation 68
100%
UP TO
BIO-BASED CARRIER
Medical Devices
Mevopur™ Bio-Based Colorants
• Minimizes risk through pre-testing
• Provides vital regulatory compliance
• Minimizes global supply chain risk with
validated backup supply
Continuous Glucose Monitoring
and Auto Injectors
Trilliant™ Healthcare Polymer Solutions
• Impact performance
• Chemical resistance
ENABLES HOME CARE
Medical
2022 Revenue: $16M
Avient Corporation 69
Fiber Optic Cable and Jacketing
Fiber-Line™ Optical Fiber Cable Components
• Reduction in weight & energy usage
• Thermal and abrasion resistant
• Extends product life
ENABLES CONNECTIVITY
Cable Micromodules
ECCOH™ Low Smoke Formulations
• Non-halogen
• Low smoke and toxicity
SUPPORTS SUSTAINABLE
INFRASTRUCTURE
Base Station Components
Edgetek™ Low-Density Formulations
• Low density – lighter weight
• Low warpage & thermal conductivity
EXTENDS PRODUCT LIFE
Antenna Components
PREPERM™ Low Loss
Dielectric Formulations
• Replaces costly ceramics
• Consistent and efficient antenna performance
ENHANCES
PERFORMANCE
5G Infrastructure
2022 Revenue: $39M
Avient Corporation 70
“Nike has partnered with Avient extensively over the years because of their leadership in
eco-friendly screen printing inks.”