https://www.avient.com/sites/default/files/2024-08/Avient Q2 2024 Earnings Call Presentation.pdf
IR Deck - AVNT-2024.06.30 (Earnings)
AVIENT CORPORATION
S E C O N D Q U A R T E R 2 0 2 4 R E S U L T S A N D
2 0 2 4 F I N A N C I A L G U I D A N C E
(NYSE: AVNT)
A U G U S T 6 , 2 0 2 4
D I S C L A I M E R
Forward-Looking Statements
Certain statements contained in or incorporated by reference into this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
FX +4.6%
FX -1.5%
Total Avient +3.1%
Note: Regional Sales Percentages exclude impact of foreign exchange
Q2 2024 SEGMENT PERFORMANCE
( C O L O R , A D D I T I V E S & I N K S )
$525
$542
Q2 23 Q2 24
$94
$108
Q2 23 Q2 24
19.9%
Sales Adjusted EBITDA
(in millions) (in millions)
Sales Adjusted EBITDA
7
17.9%
+200 bps
*
*
* Adjusted EBITDA Margin %
• Organic sales growth in all
regions led by Americas
• Raw material deflation combined
with cost reduction actions drove
EBITDA margin expansion
+ 3%
(+5% excluding FX)
+ 15%
(+17% excluding FX)
Q2 2024 SEGMENT PERFORMANCE
( S P E C I A LT Y E N G I N E E R E D M AT E R I A L S )
$301
$308
Q2 23 Q2 24
$60
$64
Q2 23 Q2 24
20.6%
Sales Adjusted EBITDA
(in millions) (in millions)
Sales Adjusted EBITDA
8
19.8%
+80 bps
*
*
* Adjusted EBITDA Margin %
• Sales growth in consumer,
healthcare and building &
construction end markets offset
by weaker demand in
telecommunications
• EBITDA margin expansion
driven by positive end market
mix as well as raw material
deflation
+ 2%
(+4% excluding FX)
+ 7%
(+8% excluding FX)
2 0 2 4 G U I D A N C E
FY 20 24 GUIDA NC E
Previous (May 7) Current
Adjusted EBITDA $510 to $535 million $515 to $540 million
Adjusted EPS $2.50 to $2.65 $2.55 to $2.70
Interest Expense $105 million $105 million
Adjusted Effective Tax Rate 23% to 25% 23% to 25%
Capital Expenditures ~$140 million ~$140 million
10
Q3 2024: Adjusted EPS of $0.62
11
Highlights
• Provides performance updates on 2030
Sustainability Goals
• Reduced company’s Scope 1 & 2 GHG emissions
by 48% since 2019
• Highlights ESG performance ratings, certifications,
and awards, including recent upgrades by
Ecovadis to Gold and CDP to A-
• Reflects Great Place to Work® culture focused on
health, safety and employee engagement
20 23 SUSTAI NA BILI TY REPORT
11
Sustainability for a
Better Tomorrow
2023
SUSTAINABILITY REPORT
12
• Investor Day to be held December 4, 2024 in
New York, NY
• The focus will be to do a deep dive on the
Company’s strategy
• Further details to be communicated
20 24 AVI ENT INVESTOR DAY
A P P E N D I X
15
Performance
Additives
15%
Pigments
13%
TiO2
9%
Dyestuffs
2%
Polyethylene
10%Nylon
5%
Polypropylene
4%
Styrenic Block
Copolymer
4%
Other Raw
Materials
38%
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
RA W MATERI AL BA SKET
SEGMENT DATA
U.S. & Canada
41%
EMEA
36%
Asia
18%
Latin America
5%
2023 SEGMENT, END MARKET AND GEOGRAPHY
GEOGRAPHY REVENUESEGMENT FINANCIALS
Consumer
19%
Packaging
23%Industrial
16%
Building and
Construction
9%
Telecommunications
4%
Energy
5%
Defense
7%
END MARKET REVENUE
$2,007M $358M
$1,138M $224M
Sales EBITDA
Specialty Engineered Materials
Color Additives and Inks
$502M$3,143M
(1)
Transportation
10%
Healthcare
7%
17
(1) Total company sales and adjusted EBITDA of $3,143M and $502M, respectively, include intercompany sales eliminations and corporate costs
2 0 2 3 R E V E N U E | $ 2 . 0 B I L L I O N
US & Canada
34%
EMEA
37%
Asia
21%
Latin America
8%
END MARKET REGION
18
Packaging
34%
Consumer
21%
Healthcare
8%
Industrial
15%
Transportation
9%
Building &
Construction
10%
Telecommunications
1% Energy
2%
COLOR , AD DI TI VES & INKS
2 0 2 3 R E V E N U E | $ 1 . 1 B I L L I O N
US & Canada
52%
EMEA
35%
Asia
13%
19
Packaging
5%
Consumer
16%
Healthcare
6%Industrial
16%
Transportation
12%
Telecommunications
9%
Energy
10% Defense
18%
Building &
Construction
8%
END MARKET REGION
SPEC IA LTY ENGI NEER ED MATERI ALS
Packaging
32%
Consumer
26%
Healthcare
9%
Industrial
13%
Building &
Construction
6%
Telecommunications
2%
Energy
2% Defense
1%
Asia
(18% of sales)
Transportation
9%
2 0 2 3 AV I E N T R E G I O N A L S A L E S
Packaging
25%
Consumer
13%
Healthcare
5%
Industrial
18%
Building &
Construction
9%
Energy
5%
Defense
8%
EMEA
(36% of sales)Transportation
13%
Packaging
13%
Consumer
22%
Healthcare
10%
Industrial
16%
Building &
Construction
12%
Energy
6%
Defense
8%
US &
Canada
(41% of sales)
Transportation
9%
Packaging
59%
Consumer
22%
Healthcare
2%
Industrial
8%
Building &
Construction
4%
LATAM
(5% of sales)
Transportation
5%
Telecommunications
4%
Telecommunications
4%
20
B Y E N D M A R K E T
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.
https://www.avient.com/sites/default/files/2021-07/fiber-line-global-product-selection-guide.pdf
FIBER-LINE™
High Performance
Synthetic Fibers
PRODUCT SELECTION GUIDE
FIBER-LINE™ HIGH PERFORMANCE SYNTHETIC FIBERS
Kevlar® Para-Aramid
Nomex®
Meta-Aramid
Vectran® LCP Zylon® PBO
Carbon
Fiber
UHMWPE PET Polyester Fiberglass Novoloid
Technora®
Filament Yarn
TECHNICAL PROPERTIES Standard Modulus
High
Modulus
Standard
Modulus
Standard
Modulus
High
Modulus
Standard
Modulus
High
Modulus
Standard
Modulus
Standard
Modulus
High
Modulus
High
Tenacity
Low
Shrink
E-Glass S-Glass
Standard
Modulus
Standard
Modulus
Breaking Tenacity (g/d) 23.0 23.6 5.0 23.0 30.0 42.0 42.0 23.0 28.0 38 9.3 8.4 6.0 - 7.3 6.7 - 9.4 1.5 28.0
Specific Gravity (Ratio) 1.44 1.44 1.38 1.40 1.40 1.54 1.56 1.80 0.97 0.97 1.38 1.38 2.58 2.48 1.27 1.39
Elongation at Break (%) 3.5 2.5 30.0 3.8 2.8 3.5 2.5 1.5 3.5 3.1 14.6 19.5 3.5 5.5 30.0 - 40.0 4.6
Tensile Modulus (g/d) 555 885 125 600 830 1200 1800 1480 850 1250 120 70 200–275 140–170 2.5–5.0 590
Equilibrium Moisture Regain
at 55% RH (%)
5.0 5.0 4.5
https://www.avient.com/sites/default/files/2021-06/cp204a-ya-2021-avient.pdf
BHD.
9-3A-1, JLN METRO PERDANA BARAT 1,
TMN USAHAWAN KEPONG UTARA,
52100 KUALA LUMPUR
WP KUALA LUMPUR
A V I E N T C O L O R A N T S M A L A Y S I A
S D N .
B H D .
2 11 23 12 10 10 1
2 11 22 1 3 10 10 1
SOH SOCK LAN
S1189628F
603-62583692
PENGARAH
2 1
09-Jun-2021
440790-X
WP KUALA LUMPUR
KUALA LUMPUR
5 2 1 0 0
9-3A-1, JLN METRO PERDANA BARAT 1, TMN USAHAWAN KEPONG UTARA,
https://www.avient.com/sites/default/files/2024-05/Cesa Fiber Additives Hydrophobic for PP Nonvoven Medical - Case Study_0520.pdf
Medical textile manufacturer
MEDICAL TEXTILE
MANUFACTURER
A A M I S T A N D A R D G O W N S
• Water repellent properties for nonwoven fabric
• Fast and long-lasting water repellency
• Usable in nonwoven SMS spunbond layer
• Enhanced liquid repellency in spunbond
layer
• Eliminated the need for secondary water
repellent coatings
• Provided long lasting hydrophobic
performance
• Achieved IPA repellency grade 6
Cesa Fiber Additives Hydrophobic Solutions
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2021-03/decking-case-study-1-pager.pdf
STRUCTURAL
DECKING
R E I N F O R C E D H D P E L U M B E R
• Reinforcement to improve strength of HDPE decking
• Composite tape compatible with HDPE for strong
adhesion
• Low thermal expansion
• Domestic (U.S.) supply and manufacturing
• Added strength to HDPE deck boards to
enable industry-leading load capacity and
joist spacing spans
• Extended product life with superior adhesion
of PE tape via co-extrusion
• Improved supply reliability with product
manufactured in Englewood, CO
Polystrand™ unidirectional thermoplastic
composite tape
KEY REQUIREMENTS WHY AVIENT?
https://www.avient.com/sites/default/files/2022-01/LubriOne-Disposable Medical Tray-Application snapshot.pdf
MEDICAL DEVICE
MANUFACTURER
D I S P O S A B L E M E D I C A L T R A Y
• Excellent wear resistance that can sustain a minimum of
2,000 rotations
• Withstand freezing temperature as low as -20°C
• Can be sterilized by EtO
• Delivered excellent wear resistance
performance to fully meet customer’s request
• Provided dimensional stability required for
this medical application
• Reduced friction to lower the noise during
operation
LubriOne™ Internally Lubricated Formulation
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2021-01/complet-lft-scorpyd-crossbow.pdf
SCORPYD™
CROSSBOW
I N T E G R A T E D R A I L A N D R I S E R
• Reduce weight by replacing aluminum
• Integrate bolt rail and riser for supporting limbs into unified
assembly
• Achieved a 40% weight reduction to
improve handling and firing ease
• Provided structural design services to create
industry-first integrated rail and riser
assembly
• Conducted FEA performance analysis to
confirm long carbon fiber reinforced
composite met extreme requirements
Complēt™ Long Carbon Fiber ETPU
Composite
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2024-02/CCG Mini Case Study_ 3D Dental Scanner_0.pdf
DENTAL TOOL OEM
3 D D E N T A L S C A N N E R
• Achieve accurate color match to non-polysulfone (PSU)
components
• Must be compatible with hospital disinfectants and survive
repeated steam sterilization
• Developed precise color match to other resins
used in adjacent parts, maintaining accurate
brand identification
• Provided expertise in pigments and critical
color manufacturing for high performance
resins
• Customized a high-performance solution able
to withstand steam sterilization in an autoclave
Transcend™ Precolored Gray and Precolored
White PSU
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2020-12/versalloy-xl-flexible-neck-for-lamp.pdf
H Y D RO P O N I C G ROW I N G
S YS T E M B R A N D
F L E X I B L E N E C K F O R L A M P
• High flow performance capabilities
• Beautiful finish
• Soft touch
• Supported the development process, from
initial design to product launch, to meet the
needs of both the molder and OEM
• Delivered a TPE solution that enabled a
22” flow line with a wall thickness of 0.225”
• Provided technical support and shared
process best practices to minimize
cosmetic defects
Versalloy™ XL Thermoplastic Elastomer
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2024-10/Aquamix Wound Care Case Study Snapshot.pdf
WOUND CARE
MA NUFAC TURER
S E L F - A D H E S I V E B A N D A G E S
• Provided aqueous dispersions that are safe
for uses in contact with human skin and
produce low levels of VOCs
• Offered high antioxidant performance to
protect bandages from degradation and
improve storage time
• Collaborated to deliver effectively and
efficiently with accelerated development
cycles and streamlined operations
Aquamix Additive Formulations
WHY AVIENT?