https://www.avient.com/resource-center?document_subtype=216&document_type=59&page=0
Discover how Avient's in-plastic solution can protect against counterfeiting in E&E applications
Examine the damaging effects chemicals can have on the plastic components and learn about preventing environmental stress cracking in consumer and healthcare applications
https://www.avient.com/resource-center?document_type=59&document_subtype=216
Discover how Avient's in-plastic solution can protect against counterfeiting in E&E applications
Examine the damaging effects chemicals can have on the plastic components and learn about preventing environmental stress cracking in consumer and healthcare applications
https://www.avient.com/resource-center?document_type=59&document_subtype=216&page=0
Discover how Avient's in-plastic solution can protect against counterfeiting in E&E applications
Examine the damaging effects chemicals can have on the plastic components and learn about preventing environmental stress cracking in consumer and healthcare applications
https://www.avient.com/products/advanced-composites/explained
You may also hear these composites described as "plastic composites" or "fiber-reinforced plastic."
While you may also hear these composites described as “plastic composites” or “reinforced plastic,” historically composite materials are most commonly thermoset.
https://www.avient.com/sites/default/files/2023-06/AVNT June IR Conferences w_Non GAAP Recs.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
• 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;
• Changes in 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 achieve strategic objectives and successfully integrate acquisitions, including Avient Protective Materials (APM);
• An inability to raise or sustain prices for products or services;
• 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 affecting our business beyond our control, including without limitation, changes in the general economy, changes in interest rates, changes in the rate of inflation and any recessionary conditions
Use of Non-GAAP Measures
This presentation includes the use of both GAAP (generally accepted accounting principles) and non-GAAP financial measures.
vehicles to be 100% electric by 2032
Where Avient Wins:
Lightweight panels that establish both
strength and stiffness resulting in
decreased energy usage, lower emissions
Long-lasting Color applications to resist
UV exposure, temperature fluctuations
and exceed the stylistic requirements of
global automakers
19
$130
$530
Q2 FY
$0.60
$2.40
Q2 FY
2023 GUIDANCE
20
Sales Adjusted EBITDA
$845
$3,400
Q2 FY
Adjusted EPS
(in millions) (in millions)
CA SH FLOW / LEV ER AGE
21
• Maintaining free cash flow
and leverage guidance from
February earnings call
• IT investment to further
integrate acquired
businesses and capture
operational efficiencies
• Restructuring actions to
streamline operations and
improve profitability,
primarily in Europe
($ 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
LONG-TERM REVENUE GROWTH DRI VERS
Growth Drivers
Long-Term
Growth Rate
Sustainable Solutions 8–12%
Healthcare 8–10%
Composites 10%
Asia / LATAM 5%
Other (GDP growth) 2–3%
Avient 6.5%
22
Sustainable
Solutions
32%
Asia / LATAM
15%
Composites
8%
Healthcare
6%
Other (GDP
Growth)
39%
• Virtual presentation to be held
September 20, 2023
• The company will be
conducting an investor-focused
presentation around our
sustainability solutions portfolio
Avient Confidential 23
SUSTAINABILITY
INVESTOR DAY
23
$340M
$405M
$455M
$550M
$790M
$915M
2016 2017 2018 2019 2020PF** 2021 2022PF***
SUSTA INAB ILITY F OR A BETTER TOMOR ROW
Revenue From Sustainable Solutions* 2016-2022
($ in millions)
Organic Future Growth Revenue Assumptions From Sustainable Solutions: 8 - 12%
24
*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
***2022 is Pro Forma for the acquisition of Avient Protective Materials and the divestiture of Distribution
$1,175M
Lightweighting
Eco-Conscious
Recycle Solutions
VOC Reduction
Sustainable Infrastructure
Human Health & Safety
Reduced Energy Use
Bio-polymers
SUSTA INAB ILITY NEEDS BY M ARKET
B&C
• Eco-Conscious
• Carbon footprint
• Resource
conservation
Healthcare
• Carbon footprint
• Bio based content
• Eco-Conscious
Automotive
• Light weighting
• Recycled Content
• VOC reduction
Consumer
• Recycle Solutions
• Light weighting
• Carbon Footprint
Packaging
• Recycle Solutions
• Light weighting
• Food waste
reduction
Common Theme: CO2 Emission Goals
Increasing Single-Use Plastic Regulation
25
I NV ESTI NG
I N INNOVATI ON
S U S T A I N A B I L I T Y P O R T F O L I O
26
A P P E N D I X
29
RAW MATERIAL 2022 ANNUAL PURCHASES
Performance
Additives
16%
Pigments
12%
TiO2
10%
Dyestuffs
2%
Polyethylene
11%
Nylon
6%
Polypropylene
5%
Styrenic Block
Copolymer
5%
Other Raw
Materials
33%
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
• Cost inflation
decelerating,
particularly for
hydrocarbon-based
raw materials
2022 pro forma results for the acquisition of Avient Protective Materials
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
$2,355M $402M
$1,300M $272M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$592M$3,653M
(1)
Transportation
9%
Healthcare
8%
31
(1) Total company sales and adjusted EBITDA of $3,653M and $592M, respectively, include intercompany sales eliminations and corporate costs
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
PEER COMPARISONS
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 May 31, 2023
Note: Avient reflects 2023 estimated revenue of $3,400 and estimated run-rate CAPEX of $110M.
36
3
2
3
3
4 4
3
3
4
5
5
6
8
9
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
C
E
H
X
L
E
C
L
A
S
H
E
M
N
S
C
L
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 May 31, 2023
Note: Free cash flow conversion calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA.
https://www.avient.com/sites/default/files/2024-08/Avient-2023-Sustainability-Report_5.pdf
Coincident with the acquisition of the
Clariant Color business in 2020, we branded the collective enterprise Avient—a new name for
a new kind of materials company.
Rubber and Plastics
Manufacturers industr y average.
That is
why Avient joined the Alliance to End Plastic Waste.
https://www.avient.com/sites/default/files/2024-08/Avient 2023 Sustainability Report_6.pdf
Coincident with the acquisition of the
Clariant Color business in 2020, we branded the collective enterprise Avient—a new name for
a new kind of materials company.
Rubber and Plastics
Manufacturers industr y average.
That is
why Avient joined the Alliance to End Plastic Waste.
https://www.avient.com/news/where-sustainability-matters-avient-highlight-its-latest-solutions-support-circular-economy-chinaplas-2023
ColorForward™ 2024: the 18th edition of Avient’s annual color forecasting guide, featuring a palette of 20 colors and effects selected by color, marketing, and social trend experts to help plastic product designers, brand managers, and marketing professionals make more informed color choices.
Chinaplas 2023, the world's leading technology-oriented plastics and rubber trade fair, is taking place April 17-20 at the Shenzhen World Exhibition & Convention Center.
Avient is certified ACC Responsible Care®, a founding member of the Alliance to End Plastic Waste and certified Great Place to Work®.
https://www.avient.com/company/sustainability/sustainability-report/planet/waste
Avient’s global operations participate in Operation Clean Sweep, whose overarching goal is to ensure that every plastic resin handling operation achieves zero loss of pellet, flake, and powder.
Operation Clean Sweep companies greatly help to prevent plastics from making their way into the ocean, promoting safety, health and cleanliness for marine life.
We recognize the importance of responsibly managing plastic pellet loss within our operations.
https://www.avient.com/resource-center/services/client-services/part-and-tooling-design-analysis
CycleWorks™ Innovation Center For Plastic Recycling