https://www.avient.com/sites/default/files/2021-12/AVNT 2021 Investor Day_0.pdf
Post-consumer recycled content as percentage of total plastic packaging volume, by weightAvient Corporation 36
37Avient Corporation
T O P 5 G A P S T H A T W E A R E A D D R E S S I N G
2: DECONTAMINATION1: COLOR MANAGEMENT
3: MAINTAINING MECHANICAL
PROPERTIES
4: MONO-MATERIAL
CONSTRUCTION
5: CONSISTENT RECYCLED
MATERIAL QUALITY
Improving the Use of Recycled Content
Avient Corporation 38
39Avient CORPORATION
• Inconsistent base color of recycled materials
• Lightest color recycled material in high demand for all applications ($$)
• Even with clear/transparent materials, color degrades over repeated processing
Our Solutions
• OpticaTM Toners and Super-concentrated colorants to
reduce and mask recycled material discoloration
• SmartHeatTM reduces heat history to minimize yellowing
• Color Simulation Tool to assist with color space design
CHALLENGES
OPPORTUNITIES
• Stabilization of color fluctuation driven by variable recycled polymer
• In-line color correction to optimize customer manufacturing efficiency
RECYCLE COLOR QUALITY RANGE
Avient Corporation 39
1: Color Management
Recycled Material Restricts Color Options
With virgin material, we
can design across a broad
color spectrum
The darker the recycled
materials, the more color
design freedom is restricted
This bright yellow
is not achievable
with high
concentrations of
dark recycled
materials
Avient can provide customer guidance on maximum recycle
content possible and color concentration required to achieve
desired color
Avient Corporation 40
Case Study with Brand Owner
Recycled Resin
=
Discolored Base
Virgin Resin
=
Clean Color Base
Degree of base discoloration limits recycle content
Avient Corporation 41
The Plus Factor Opportunity
I N C R E A S E D U S E O F R E C Y C L E D M A T E R I A L
R E Q U I R E S M O R E C O L O R A N T A N D A D D I T I V E S
Avient Corporation 42
$100M +
2: Decontamination
Recycled material feedstocks are contaminated
• Feedstock variability supplies the recycle process
• Insufficient washing at recycler
• Residual labels and printing inks cause quality and NIAS issues
• Unpleasant recycled material odor (in processing and the final application)
• Clean, food grade, recycled material availability in high demand
• Reliable decontamination to reduce NIAS concerns
• Full odor removal
Our Solutions
• CESATM Laser Marking to eliminate contaminating printing inks,
labels and glue
• AAzureTM process aids and scavengers to enable food and
beverage taste purity in PET packaging
• ProsureTM range of formulations to enable NIAS compliance and
security (customer peace of mind)
CHALLENGES
NIAS = Non Intentionally Added Substances
OPPORTUNITIES
Avient Corporation 43
44
3: Maintaining Mechanical Properties
• Mechanical properties of recycled materials degrade after multiple heat cycles
• Today's recycling protocols only focus on one recycle loop…in reality, there
will be several
• Legislation and brand owners are targeting higher recycled material ratio
incorporation and full circularity
• Polymer quality stability over multiple loops to deliver circular recyclability
• Stress cracking of recycled bottles
• Upgrading performance of lower quality recycled materials
• Specification and guided selection amongst highly variable recycled materials
Our Solutions
• CESATM antioxidants and process aids to enhance
physical properties
• SmartHeatTM reduces heat history to minimize yellowing
• rePrize™ for PET polymer chain repair and extension
CHALLENGES
OPPORTUNITIES
Avient Corporation 44
45
Multi-material packaging is harder to recycle
• Contamination of polymer streams
• Issues in sorting
• Issues in separation
• Trend is to restrict multi-material systems in favor of mono-material constructions
• Improve recyclability of PET gas barriers
• Barrier system development for Polyolefins
• Recyclable barrier systems for film and sheet
Our Solutions
• Portfolio of compatibilizers to enable multilayer constructions
• AmosorbTM to extend beverage shelf life by scavenging
oxygen through the bottle wall
• CaptureTM to extend product shelf life through oxygen
scavenging but without contaminating the bottle
• Lactra SX TM to prevent light-induced oxidation in liquid dairy
products stored at higher temperatures
OPPORTUNITIES
CHALLENGES
Avient Corporation 45
4: Mono-Material Construction
46
Brand Owners require a consistent brand identity
• Inconsistent quality streams pose a challenge to delivering homogeneous product
quality and aesthetics to the consumer
• Brands demand recycled content, but with color/property consistency
• Recyclers are challenged to fulfill needs from brand owners and convertors
• Specification and selection of recycled material grades for targeted applications
• Simulation of recycled material performance in the end-use application
• Leverage re-formulation expertise to provide a consistent packaging product (color and
mechanical properties)
Our Solutions
Our Service and Color Expertise differentiate Avient and allow
us to support customers throughout the entire design process
• Design for use: Color matching, Color design options
• Recycle lot selection
• Improving mechanical properties
• Improving material processing
OPPORTUNITIES
CHALLENGES
Closer customer collaboration to support recycle efforts
Avient Corporation 46
5: Consistent Recycle Material Quality
2016 2021E
Growth in Sustainable Solutions
*Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”)
Revenue From Sustainable Solutions*
$340M
$930M
Avient Corporation 47
Future Revenue Growth Assumptions
8-12%
CAGR
Avient Corporation 48
Healthcare
Cathy Dodd
High-Impact, High-Growth Industry
Medical
Equipment /
Devices
33%
Drug
Delivery
19%
Medical
Supplies
18%
Labware
14%
Packaging
8%
Remote
Monitoring
5%
$225
$380
$685
2010 2016 2021E
Healthcare Submarkets (2021E) Track Record of Sales Growth
Personal Wellness
3%
($ millions)
Avient Corporation 49
Our Foundation
W E A R E P O S I T I O N E D T O W I N
Relationships Innovative Solutions Differentiated Services
50Avient Corporation
Trends in Healthcare
S H A P I N G I N N O V A T I O N & S O L U T I O N S
Improved Wellness &
Connectedness
Globalization &
Localization
Increasing Life Expectancy
Self Management & Self
Administration
Technology Driving
Diagnostic & Remote
Monitoring
COVID-19 Protection
Avient Corporation 51
• Deep, trusted customer relationships
• Well-positioned and entrenched in
the Healthcare supply chain
• Broad & differentiated capabilities
• Positioned to respond &
execute quickly
COVID - 19 Protection
A V I E N T W A S S E T A N D R E A D Y
Avient Corporation 52
Aging Population
T R E A T I N G C H R O N I C C O N D I T I O N S
Of the U.S. population is
aged 65 or older… and this
number is growing
Suffer from one or more chronic
health conditions
Avient Corporation 53
Aging Population
T R E A T I N G C H R O N I C C O N D I T I O N S
Increasing Life Expectancy
Cardiology
• 47% of Americans having at least one of three
major risk factors for heart disease
Diabetes
• 193 million people with Type 2 diabetes and will
grow to 252 million by 2026 at a 5% CAGR
Neurology
• Neurological disorders are the second leading
cause of death globally, second only to heart
disease
Avient Corporation 54
Connected Health
E X P A N S I O N O F M E D I C A L W E A R A B L E D E V I C E S
Improved Wellness &
Connectedness
Application Opportunities
• Flexible components to provide design
aesthetics & proper functionality
• Robust designs to meet regulatory
requirements and perform over long product
lifecycles
• Patient comfort to promote ongoing use
Avient Corporation 55
Remote Patient Monitoring
T R A N S L A T I N G D E V I C E S F R O M H O S P I T A L S E T T I N G S T O H O M E
Technology Driving Diagnostic &
Remote Monitoring
Application Opportunities
• Durable, chemically-resistant devices to
withstand impact in a home environment and
exposure to a variety of household cleaners
• Miniaturization of devices to fit into limited space
in the home, while maintaining maximum
functionality
• Innovative, user-friendly designs and long-term
aesthetics to provide patients with easy-to-use,
high-quality, attractive devices in the home
Avient Corporation 56
Self Management & Self Administration
E N A B L I N G P A T I E N T S T O M A N A G E H E A L T H
Self Management & Self
Administration
Application Opportunities
• Combination of rigid & flexible materials to
realize design potential and optimize device
functionality
• Superior chemical resistance to cleaners,
disinfectants, hand oils, UV rays, and drugs to
extend life of device
• Reduced abrasion between mating components
to ensure proper dosing
• Regulatory-approved colorant and additives to
provide branding and drug identification
Avient Corporation 57
Trends are Shaping Innovation
Professional / Clinic Patient / Home
Avient Corporation 58
Avient Design
D I F F E R E N T I A T E D S E R V I C E
• Global product development support from
industrial design through engineering and
product launch
• Extensive material, manufacturing, industry
and value chain knowledge
• Human-centric design skill, aligning product
innovations with ergonomic needs
• Product tear-down capabilities to provide
customers with product optimization and cost
reduction insights
• 3D-printed prototypes and samples to
accelerate product development
Avient Corporation 59
IDEAIDEA
PROOF OF
CONCEPT
PROOF OF
CONCEPT
DESIGNDESIGN TOOLINGTOOLING EVALUATIONEVALUATION
LAUNCH &
DELIVERY
LAUNCH &
DELIVERY
Accelerating Speed to Market
with Avient design
Avient Corporation 60
Avient Design
A U T O I N J E C T O R
61Avient Corporation
Avient Design
62
A U T O - I N J E C T O R T E A R - D O W N
Defined haptics
and soft touch
Stringent regulatory
requirements
Drug contact, mechanical sensitivity for
dosing accuracy
Lasermarking and
laserwelding compatible
Strict change control
Avient Corporation
Avient Design
63
A U T O I N J E C T O R I N N O V A T I O N
Avient Corporation
Avient Design
64
A U T O I N J E C T O R I N N O V A T I O N
Easy to use
Safe
Quality
Protect Ingredients
Compliant
Temperature
Management
Avient Corporation
65
Medical Grade TPE
Healthcare Colorants
High-Density Polymer
Laser weldable formulation
Laser marking additives
Lubricated polymers
Avient Corporation
Easy to use
Safe
Quality
Protect Ingredients
Compliant
Temperature
Management
Avient Design
A U T O I N J E C T O R I N N O V A T I O N
17,645
29,445
2021E 2025E
Source: BCC Research, Nov. 2020
(LBs millions)
Healthcare Growth Outlook
Avient Corporation 66
8-10%
CAGR
Future Revenue Growth AssumptionsMarket for Medical Plastics
Investor Day 2021
Break
Avient Corporation 68
Composites
Chris Pederson
$74
$84
$216 $212
$260
$5
$10
$32
$41
$50
0
10
20
30
40
50
60
70
2017 2018 2019 2020 2021E
• Prior investments in composites
platform and outdoor high
performance applications continue
to pay off driving substantial growth
in 2021
($ in millions)
Composites
• Composites will also drive our ability
to deliver future revenue growth in
excess of GDP
Avient Corporation 69
Spotlight: Growth in Composites
Composite Material Design
Avient Corporation 70
Materials Structure
Mfg ProcessPart Properties
Lower weight
Corrosion resistance
Fatigue performance
Tailor-ability
Design flexibility
Composite Material Forms
Avient Corporation 71
Manufacturing Costs
Continuous Fiber
Thermosets
Continuous Fiber
Thermoplastics
Design Flexibility
Continuous Fiber
Thermosets
Continuous Fiber
Thermoplastics
Discontinuous Fiber
Thermoplastics
Performance Performance
Discontinuous Fiber
Thermoplastics
Composites Portfolio
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
Avient Corporation 72
Powersports & Outdoor Gear
B E N E F I T S O F C O M P O S I T E S
STRUCTURAL COMPONENTS
Material Replacement • Weight Reduction •
Temperature Resistance • Impact Resistance
BODY PANELS
Paint Replacement • Weight
Reduction • Scratch Resistance
ADVENTURE GEAR
Fatigue Resistance • Lightweight •
Temperature Resistance • Impact
Resistance
Avient Corporation 73
Industrial & Energy
B E N E F I T S O F C O M P O S I T E S
HIGH PRESSURE PIPE
Burst Strength • Corrosion Resistance •
Lighter Weight
GPS TRACKABLE PALLETS
Weight Reduction • Increased Load •
Stiffness
POWER INFRASTUCTURE
Corrosion Resistance • Electrical
Insulation • Weight Reduction
Avient Corporation 74
$31
$48
$66
$119
2009 2013 2017 2021E
($ millions)
Avient Corporation 75
Spotlight: Growth at Fiber-Line
Revenue
• Fiber-Line business acquired on
January 2, 2019 for $120 million
• Specialty portfolio of fiber-optic cable
applications primarily serving
telecommunications end-market
• Deep formulation expertise, innovative
culture and global commercial presence
will accelerate growth related to 5G
infrastructure build out
Avient Corporation 76
5G
Technology
Matt Reinhardt
Evolution of 5G
M E E T I N G S I G N I F I C A N T L Y E X P A N D I N G C O N N E C T I V I T Y N E E D S
Avient Corporation 77
How FAST IS 5G?
Avient Corporation 104
Unprecedented Market Opportunity
$3 Billion Market
• 5G Infrastructure
• Vehicle Electrification
• IoT, Wearables
• Home Health & Consumer Medical Devices
Engineered Materials: Revolutionary Adaptation
Source: Lux Research Inc.,
How can Avient “capture & create” value in this segment?
Purchase price multiple rapidly declining on strength of
business and synergy capture
(1)
(1)
(1) Financial information is pro forma to include a full year of Clariant Color acquisition
($ in millions)
11.9%
16.3%
2019PF 2021E
EBITDA Margins
(1)
126Avient Corporation
Bolt-On Acquisition History
Commercial
Resources(1)
Operating Income
($ in millions)
Operating Margins
259
360
At Acquisition 2021E
$40
$122
At Acquisition 2021E
9%
21%
At Acquisition 2021E
Established Acquisitions
(> 7 years)
+ 39% + 205% + 1200 bps
(1) Commercial Resources include associate headcount in R&D / Technical, Marketing and Sales
127Avient Corporation
We are a specialty formulator
AND
We are a sustainable solutions company
Avient Corporation 128
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
https://www.avient.com/sites/default/files/2024-11/reSound REC Recycled Content TPEs Selection Guide.pdf
NORTH AMERICA GRADES
reSound™ REC
VX2800-0003
C 65 Gray
reSound™ REC
OF 7310-80
reSound™ REC
OF 7310-90
reSound™ REC
GP 7820-340
reSound™ REC
GP 7820-360
reSound™ REC
GP 7820-380
Recycled Content PCR/PIR Blend PCR/PIR Blend PCR/PIR Blend PCR/PIR Blend PCR/PIR Blend PCR/PIR Blend
Recycled Content, % 25% 35% 45% 60% 60% 60%
Recycled Source Food Packaging
Food
Packaging
Food
Packaging
Transportation,
Industrial
Transportation,
Industrial
Transportation,
Industrial
Hardness, Shore A 65 80 90 36 63 77
Color Gray Black/Natural (Gray) Black/Natural (Gray) Natural Natural Natural
Specific Gravity 0.88 0.9 0.91 0.95 0.98 1.0
Tensile Strength, PSI 831 1120 1590 1027 1012 1173
Elongation at Break, % 620 570 520 1600 1200 1000
Compression Set
@ Room Temperature 26 32 37 24 30 39
OM Substrate PP PP PP PP PP PP
Processing IM or OM IM IM IM IM IM
Agency Rating Application Specific FDA – – – – –
Automotive Testing* –
VOC & FOG (VDA 278),
Odor (VDA 270)
VOC & FOG (VDA 278),
Odor (VDA 270)
– – –
reSound™ REC
VX7900-5001 C I 30A
Natural
reSound™ REC
VX7900-5001 C I 50A
Natural
reSound™ REC
VX7900-5001 C I 70A
Natural
reSound™ REC
AF 7210-140 B
reSound™ REC
AF 7210-150 B
reSound™ REC
AF 7210-160 B
reSound™ REC
AF 7210-170 B
reSound™ REC
AF 7210-180 B
reSound™ REC
AF 7210-190 B
Recycled Content PIR/PCR Blend PIR/PCR Blend PIR/PCR Blend PIR/PCR Blend PIR/PCR Blend PIR/PCR Blend PIR/PCR Blend PIR/PCR Blend PIR/PCR Blend
Recycled Content, % 81% 81% 83% 59% 57% 54% 57% 56% 51%
PIR Recycled Source Proprietary Blend Proprietary Blend Proprietary Blend Transportation Transportation Transportation Transportation Transportation Transportation
PCR Recycled Source Transportation/Industrial
Transportation/
Industrial
Transportation/
Industrial Transportation Transportation Transportation Transportation Transportation Transportation
Hardness, Shore A 30 50 70 43 51 61 70 81 90
Color Natural Natural Natural Black Black Black Black Black Black
Specific Gravity 1.14 1.16 1.16 0.97 0.98 0.98 0.98 0.99 0.99
Tensile Strength, MPa 2.39 3.23 3.35 4 5 5 8 10 13
Elongation at Break, % 796 654 515 1013 993 981 935 876 829
Compression Set
@ Room Temperature
16 24 37 41 44 44 48 54 55
OM Substrate PP PP PP PP PP PP PP PP PP
Processing IM or OM IM or OM IM or OM IM IM IM IM IM IM
EUROPE GRADES
reSound™ REC
VX2800-5032 C 47A
Natural
reSound™ REC
VX2800-5033 C 54A
Natural
reSound™ REC
GP 7820-140
reSound™ REC
GP 7820-160
reSound™ REC
GP 7820-180
Recycled Content PCR PCR PCR PCR PCR
Recycled Content, % 61% 61% 60% 60% 60%
PCR Recycled Source Transportation Transportation Transportation/Industrial
Transportation/
Industrial
Transportation/
Industrial
Hardness, Shore A 47 54 38 57 77
Color Natural Natural Natural Natural Natural
Specific Gravity 0.96 0.96 0.94 0.97 1.0
Tensile Strength, MPa 1.80 2.00 7.19 6.65 7
Elongation at Break, % 766 682 1590 1380 1010
Compression Set
@ Room Temperature
28 29 28 32 38
OM Substrate PP PP PP PP PP
Processing IM or OM IM or OM IM IM IM
EUROPE GRADES
ASIA GRADES - PIR
reSound™ REC
VX3120-801
I 65A Natural
reSound™ REC
VX3120-802
I 65A Natural
reSound™ REC
VX3120-803
I 65A Natural
Recycled Content PIR PIR PIR
Recycled Content, % 20% 40% 60%
Recycled Source
Textile
Industry
Textile
Industry
Textile
Industry
Hardness, Shore A 67 68 68
Color Natural Natural Natural
Specific Gravity 1.11 1.10 1.11
Tensile Strength, PSI 1450 1229 1151
Elongation at Break, % 752 709 653
OM Substrate
PC, ABS,
PC/ABS
PC, ABS,
PC/ABS
PC, ABS,
PC/ABS
Processing IM or OM IM or OM IM or OM
reSound™ REC
DY 7810-801
C 30A Natural
reSound™ REC
DY 7810-801
C 40A Natural
reSound™ REC
DY 7810-801
C 50A Natural
reSound™ REC
DY 7810-801
C 60A Natural
reSound™ REC
DY 7810-801
C 70A Natural
reSound™ REC
DY 7810-801
C 80A Natural
reSound™ REC
DY 7810-801
C 90A Natural
reSound™ REC
DY 7820-801
C 30A Natural
reSound™ REC
DY 7820-801
C 40A Natural
reSound™ REC
DY 7820-801 C 50A
Natural
reSound™ REC
DY 7820-801
C 60A Natural
reSound™ REC
DY 7820-801
C 70A Natural
reSound™ REC
DY 7820-801
C 80A Natural
reSound™ REC
DY 7820-801
C 90A Natural
reSound™ REC
3630-801C 40N
reSound™ REC
3630-801C 50N
reSound™ REC
3630-801C 60N
reSound™ REC
7850-90N FR
reSound™ REC
GP 7820-240
reSound™ REC
GP 7820-260
reSound™ REC
GP 7820-280
Recycled Content PCR PCR PCR PCR PCR PCR PCR PCR PCR PCR PCR PCR PCR PCR PCR PCR PCR PCR PCR PCR PCR
Recycled Content, % 9% 12% 15% 21% 23% 30% 39% 60% 60% 60% 60% 60% 60% 60% 45% 45% 45% 32% 60% 60% 60%
Recycled Source Food Packaging
Food
Packaging
Food
Packaging
Food
Packaging
Food
Packaging
Food
Packaging
Food
Packaging
Food
Packaging,
Transportation
Food
Packaging,
Transportation
Food
Packaging,
Transportation
Food
Packaging,
Transportation
Food
Packaging,
Transportation
Food
Packaging,
Transportation
Food
Packaging,
Transportation
Food
Packaging,
Transportation
Food
Packaging,
Transportation
Food
Packaging,
Transportation
Food
Packaging
Transportation,
Industrial
Transportation,
Industrial
Transportation,
Industrial
Hardness, Shore A 30 40 50 60 70 80 90 30 40 50 60 70 80 90 40 49 58 85 39 57 80
Color Natural Natural Natural Natural Natural Natural Natural Natural Natural Natural Natural Natural Natural Natural Natural Natural Natural Natural Natural Natural Natural
Specific Gravity 0.88 0.89 0.89 0.88 0.88 0.89 0.89 0.95 0.94 0.97 0.97 0.99 1.01 1.02 0.90 0.90 0.90 1.04 0.95 0.98 1.0
Tensile Strength, PSI 678 889 939 964 1057 1328 1619 663 804 830 859 844 1007 1279 830 965 985 1250 938 1089 1479
Elongation at Break, % >1000 983 893 750 726 699 599 1028 948 880 807 681 642 640 700 700 650 310 1600 1360 1090
OM Substrate PP PP PP PP PP PP PP PP PP PP PP PP PP PP PC, ABS, PC/ABS PC, ABS, PC/ABS PC, ABS, PC/ABS – PP 30 39
Processing IM or OM IM or OM IM or OM IM or OM IM or OM IM or OM IM or OM IM or OM IM or OM IM or OM IM or OM IM or OM IM or OM IM or OM IM or OM IM or OM IM or OM EM IM IM IM
ASIA GRADES - PCR
Copyright © 2024, Avient Corporation.
https://www.avient.com/sites/default/files/2022-09/54139-Certificate-29AUG2022%5B98%5D.pdf
COMPOUND, SUPPLY AND PROTOTYPING SERVICES OF THERMOPLASTICS FOR THE MEDICAL DEVICE
INDUSTRY
Certificate Of Conformance
https://www.avient.com/sites/default/files/2023-09/65567-Certificate-08SEP2023.pdf
MANUFACTURE OF COLORANTS FOR PLASTICS FOR THE MEDICAL DEVICE INDUSTRY
Certificate Of Conformance
https://www.avient.com/sites/default/files/resources/NEU%2520ISO%25209001-2015%2520Exp%25201-22%2520%25281%2529.pdf
COMPOUND AND SUPPLY OF THERMOPLASTICS FOR THE MEDICAL DEVICE INDUSTRY.
https://www.avient.com/sites/default/files/2020-10/case-study-one-pager-trilliant-xr-xray-glasses.pdf
https://www.avient.com/products/engineered-polymer-formulations/conductive-signal-radiation-shielding-formulations/trilliant
Medical equipment manufacturer
https://www.avient.com/sites/default/files/2021-07/mevopur-needle-hub-1-page-case-study.pdf
NEEDLE HUB
MANUFACTURER
N E E D L E H U B C O L O R S
• RAL and Pantone® colors available in palette to align with
ISO 6009 color standard
• Opaque and transparent polypropylene selections
available in both masterbatch and ready-to-use precolors
• Raw materials pre-tested to ISO 10993 and USP Class VI
medical device guidelines
• Certified formulations available globally
• Provided RAL and Pantone colors as
required
• Developed custom polypropylene
formulations to meet specific opacities
• Offered pre-tested raw materials and
produced in an ISO 13485 certified site,
minimizing risk across the value chain
• Provided global formulations transferrable
from our three ISO 13485 certified facilities
Mevopur™ Healthcare Colors
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2021-03/avient-march-ir-fermium_0.pdf
15
2 0 2 1 O U T L O O K
A S P R O V I D E D O N F E B R U A R Y 9 , 2 0 2 1
W E B C A S T
Synergies
($ millions)
Initial
Three-Year
Estimate
Revised
Three-Year
Estimate
2021
Expected
Realization
Administrative $ 18 $ 20 $ 15
Sourcing 24 30 15
Operational 18 25 5
Total Synergies $ 60 $ 75 $ 35
C L A R I A N T I N T E G R AT I O N &
C O S T S Y N ERG I E S U PDATE
17
• Integration going extremely well: synergy target increased from $60 million to $75 million
• $5 million of synergies in 2020 and expect to realize $35 million in 2021
• 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
$86
$103
2020PF 2021E
$0.53
$0.70
2020PF 2021E
ORGANIC GROWTH PROJECTIONS – Q1
( T O TA L C O M PA N Y )
18
Sales Adjusted Operating Income
$991
$1,090
2020PF 2021E
+ 10%
Adjusted EPS
+ 20% + 32%
(in millions) (in millions)
(1) (1) (1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
$308
$360
2020PF 2021E
$1.93
$2.40
2020PF 2021E
ORGANIC GROWTH PROJECTIONS – FULL YEAR
( T O TA L C O M PA N Y )
19
Sales Adjusted Operating Income
$3,783
$4,100
2020PF 2021E
+ 8%
Adjusted EPS
+ 17% + 24%
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(1) (1)
(in millions) (in millions)
(1)
2020 Pro forma $3,783 $308
Sustainable Solutions 60 11% 24
Healthcare 60 11% 18
Composites 20 10% 10
Growth in Emerging Regions 50 7% 11
Other (GDP growth) 82 5% 11
Sub-total $4,055 7% $382
COVID Response Applications (25) - (11)
Outdoor High Performance Applications (15) - (7)
Asia Payroll Tax Subsidy (COVID) - - (4)
FX Impact 85 - 7
Synergies - - 30
Incentives, Travel, Other Employee Costs - - (37)
2021 Estimated $4,100 8% $360
2021 ORGANIC SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
20
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(2) COVID Response Applications: facemasks, personal protective equipment
Sales Growth Rate
Adjusted
Operating
Income$ millions
(1)
(2)
C A S H F LOW A N D L E V E R AGE
21
• Asset light business generates
significant free cash flow
• Cash generation in 2021 partially offset
by restructuring activities to capture
synergies associated with the Clariant
Masterbatch acquisition
• Cash flow deployed to M&A,
opportunistic share repurchases and
balance sheet / leverage reduction
3.5x
2.7x
2.1x
2019PF 2020PF 2021E
Net Debt / Adjusted EBITDA
(1) (1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
($ millions) 2020 2021E
Adjusted EBITDA 382 510
Working Capital: Source / (Use) 116 (30)
Cash Taxes (40) (53)
Interest Paid (67) (76)
CapEx (62) (75)
CapEx for Synergy Capture (2) (20)
Restructuring for Synergy Capture (11) (25)
Other 22 19
Free Cash Flow 338 250
22
• 8% increase in sales drives 24% increase in adjusted EPS to $2.40
($2.70 excluding step-up depreciation and amortization) as a result of
continued growth in sustainable solutions and synergy capture
• Clariant synergy capture ahead of schedule: $35M of savings planned from
Clariant Masterbatch acquisition
• Adjusted EBITDA of $510M – highest level in company history
• Deleveraging ahead of schedule – 2.1x net debt to adjusted EBITDA by the
end of 2021
2021 PROJECTIONS
PEER COMPARISONS
23
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
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