https://www.avient.com/sites/default/files/2021-06/fl.us-.datasheet-uhmwpe.pdf
UHMWPE DATA
UHMWPE BARE FIBER PERFORMANCE
* Equilibrium moisture regain @ 55% RH ** Creep @ 40%-58% ultimate tensile strength *** Shrinkage in dry air @ 177 C for 30 minutes
MOVING HIGH PERFORMANCE FIBERS FORWARD
ABOUT FIBER-LINE®
LOCATIONS
Headquarters, R&D, Manufacturing
FIBER-LINE® LLC
3050 Campus Drive
Hatfield, PA 19440
+1 215.997.9181
fiber@fiber-line.com
Manufacturing Operations
FIBER-LINE® LLC
280 Performance Drive SE
Hickory, NC 28602
+1 828.326.8700
fiber@fiber-line.com
EMEA & Asia Pacific Operations
FIBER-LINE® INTERNATIONAL B.V.
https://www.avient.com/sites/default/files/2022-04/Versaflex XP Wet Grip Product Bulletin_NEW.pdf
Versaflex XP 2850
Hardness, Shore A 53
Specific Gravity 0.89
Color Natural
Tensile Strength (psi) 616.4
Elongation at Break (%) 541.4
Viscosity @ 11170/sec (Pa s) 10.9
Dry Kinetic COF 1.256
Wet Kinetic COF 2.463
Increase in COF* (%) 96.1
Abrasion Loss** (mg/cycle) 0.014
Bondability*** PP, PE
TECHNICAL PROPERTIES OF VERSAFLEX XP WET GRIP MATERIAL
* Pull time = 5 sec; Sled Weight = 203 grams; Rate = 30cm/min
** Weight = 1000 grams; Cycles = 500; Wheel = H-18
*** For bonding to other substrates, please contact Avient
COMPARING VERSAFLEX XP 2850 WITH COMMONLY USED WET GRIP MATERIALS
3.00
2.50
2.00
1.50
1.00
0.50
0.00
1.26
2.46
0.85
0.52
0.40
1.20
0.52 0.50 0.52 0.500.50 0.49
Wax Rubber EVA Foam Rubberized
Vinyl
Versaflex
XP 2850
PVC
DRY WET
Wet/Dry COF Performance
*Prepared to standard ASTM D1141-98R21
ps
i
D
ur
om
et
er
(S
ho
re
A
)
https://www.avient.com/sites/default/files/2024-01/ColorMatrix AAnchor Brochure_A4.pdf
Recycle
Loop
AAnchor
Mg/kg
Anthranilamide
Mg/kg
Virgin
https://www.avient.com/sites/default/files/2021-12/AVNT 2021 Investor Day_0.pdf
Investor Day 2021
Shaping a
Sustainable
Future
Bob Patterson
Avient Corporation 4
End Market Transformation
5
Healthcare
4%
Packaging
8%
Consumer
10%
Building &
Construction
43%
Transportation
14%
Industrial
15%
Energy
4%
Telecom.
2%
2006 2021E
Healthcare
14%
Consumer
23%
Building &
Construction
10%
Transportation
12%
Industrial
16%
Energy
2%
Telecom.
4%
Packaging
19%
Avient Corporation
Avient: Who We Are
39
22
9
34
• U.S. and Canada
• Latin America
• Europe, Middle East & Africa
• Asia
25,000+
CUSTOMERS
Headquartered in Avon Lake, OH
(Cleveland)
8,600+ employees
100+ manufacturing plants
Key Financial Data
2021E Sales $4.75 billion
2021E EBITDA $580 million
2021E EPS $3.00
87% of EBITDA from specialty applications
>70%
ARE CUSTOMIZED SOLUTIONS
TO UNIQUE SPECIFICATIONS
of
sales
Avient Corporation 6
46%
66%
87%
0%
20%
40%
60%
80%
100%
2005 2010 2015 2021E
%
o
f
A
d
ju
st
e
d
E
B
IT
D
A
(1
)
JVs Performance Products & Solutions Distribution Specialty
7%
(1) Adjusted EBITDA is EBITDA excluding corporate costs and special items
(2) 2021 includes full synergies from Clariant color acquisition
(2)
Specialty Transformation
Avient Corporation 7
CAI
(1) Financial information is pro forma to include a full year of Clariant Color business acquisition
2.7%
15.2%
17.0%
2006 2019 2021E
1.8%
15.2%
17.6%
2006 2019 2021E
(1)
SEM
• Continued portfolio transformation to
high-growth end markets and
sustainable solutions
• Clariant synergy realization
• Investments in composites and outdoor
high performance applications drive
growth and mix improvements
Specialty EBITDA Margin Expansion
Avient Corporation 8
(1)
(1)
We are a Formulator
CUSTOM
FORMULATION
Avient Corporation 9
Sustainability for a Better Tomorrow
*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
Revenue From Sustainable Solutions* 2016-2021
2016 2017 2018 2019 2020PF** 2021E
$405M
$455M
$340M
$550M
$790M
$930M
$270
215
170
90
90
30
45
20
$930M2021E Sales
($ in millions)
Avient Corporation 10
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
$2.06
$2.21
$2.43
$1.51
$1.69
$1.93
$3.00
2009 2010 2011 2012 2013 2014 2015 2016* 2017* 2018 20182 2019 2020 2021E
Pro Forma for
sale of PP&S
(1): Pro Forma for sale of DSS
(2): Pro Forma for full year of the Clariant Color acquisition
2018
(1) (1) (2)
Adjusted EPS Growth
Avient Corporation 11
$133
$205
2019PF 2021E
Clariant Color: Transformational Acquisition
12
Clariant Color EBITDA Growth
Purchase Price Multiple
10.8x
7.0x
6.0x
2019PF 2021E 2021E w/ Full
Synergies
• Acquisition of Clariant Color business significantly expanded
presence in healthcare, packaging and consumer end markets
• Strength of portfolio – double-digit annual EBITDA growth
since acquisition
• On-track to realize $52 million of expected synergies in 2021
• Acquisition completed on July 1, 2020 for $1.45 billion.
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?
Fiber Technology
Barrier Technologies
Avient Corporation 107
We are breaking ground on a new innovation center adjacent to our manufacturing facility in Pune
• Focused on investments in both R&D resource
additions and capital investments
• Platform development in new disruptive
markets to support core business and strategy
ISHA
Avient Manufacturing
Site, Pune, India
India Innovation Center
Innovative Sustainable Holistic Accelerator (ISHA)
Avient Corporation 108
2021E 2022E 2023E 2024E 2025E
$1.1B
$1.6B
Growth Through Innovation
Avient Corporation 109
Total CAI and SEMWorld-Class Vitality Index
% of revenue from products launched last five years
12%
35%
2006 2021E
Revenue from new products
Investor Day 2021
Summary
Jamie Beggs
Avient Corporation 110
$442
$457
$580
2019PF 2020PF 2021E
$1.74
$1.93
$3.00
2019PF 2020PF 2021E
Full Year 2019 – 2021 Organic Growth
( T O TA L C O M PA N Y )
Sales Adjusted EBITDA
$3,981
$3,783
$4,750
2019PF 2020PF 2021E
+ 19%
Adjusted EPS
(1) Financial information is pro forma to include a full year of Clariant Color acquisition
(1) (1)
(in millions) (in millions)
(1)(1)
+ 31% + 72%
(1) (1)
Avient Corporation 111
2021 Sales Growth Summary
Key Growth Drivers Segments
(1) Financial information is pro forma to include a full year of Clariant Color business acquisition
Sales
Growth
Rate
2020 Proforma 3,783$
Sustainable Solutions 140 18%
Healthcare 150 31%
Composites 44 33%
Growth in Asia / LATAM 103 21%
Other 530 28%
2021 Estimated 4,750$ 26%
(1) (1)
Sales
Growth
Rate
2020 Proforma 3,783$
Color, Additives & Inks 330 16%
Specialty Engineered Materials 195 28%
Distribution 495 45%
Corporate & Eliminations (53)
2021 Estimated 4,750$ 26%
Avient Corporation 112
Year–to–date EBITDA Bridge
2020 September YTD $ 339
Demand 132
Adjusted
EBITDA($ millions)
(1) Financial information is pro forma to include a full year of Clariant Color business acquisition
(1)
CAI:
Price / Mix 96
Inflation (74)
SEM:
Price / Mix 61
Inflation (45)
Distribution:
Price / Mix 204
Inflation (195)
Net Price Benefit 47
Supply Chain Disruptions (38)
COVID Response Applications (11)
Synergies 34
Incentives, Travel, FX, Other (48)
2021 September YTD $ 455
• Demand driven by growth in
sustainable solutions, healthcare
and consumer applications
• Price increases have more than
covered raw material and freight
inflation impacts of $300M year-
to-date compared to 2020
• Synergy capture on pace to
achieve $52M in annual savings
in 2021
Avient Corporation 113
2006 2021E
$1,110
$3,000
Return on Invested Capital
Avient Corporation 114
Invested Capital
2006 Current
11%
8%
Cost of Capital
2006 2021E
5%
12%
ROIC (after-tax)
($ millions)
0.1 0.1
0.2
0.5
0.6
0.7
0.8
0.9
0.9
1.0 1.0
11 12 13 14 15 16 17 18 19 20 21
44%
98%
YTD 5 - YR 10 - YR
0.16
0.20
0.26
0.34
0.42
0.50
0.58
0.72
0.79 0.81
0.85
0.95
11 12 13 14 15 16 17 18 19 20 21 22
2.1x
Q4 NET LEVERAGE
~$1Bn
REPURCHASED
OVER LAST 10 YEARS
~$450MM
PAID OVER LAST 11 YEARS
Creating Value for Shareholders
Avient Corporation 115
Share Performance Dividends Share Repurchases Deleveraging
3.5x
2.1x
2019PF 2021E
Growing Dividend Cumulative Buybacks Net Leverage
$
B
n
$
p
e
r
sh
a
re
Total Shareholder Return
~$4.3Bn
MARKET CAP INCREASE
OVER LAST 10 YEARS
(1) Share performance includes reinvested dividends and is as of December 2, 2021
(2) Financial information is pro forma to include a full year of Clariant Color acquisition
(1)
(2)
528%
Shaping a Sustainable Future…
Avient Corporation 116
What We Shared Today
S US TAINAB LE S OLU TI ONS
$340
$930
2016 2021E
Brand Owner Commitment
3
2021E 2025E
10 – 50
Percent of recycled
plastic used
Avient Historic Growth Future Growth Assumptions
13% organic CAGR
Net Sales ($ millions)
Avient Corporation 117
8-12%
CAGR
What We Shared Today
HE A LT HCARE
$225
$685
2010 2021E
Megatrend Growth Rate
17,645
29,445
2021E 2025E
Avient Historic Growth Future Growth Assumptions
9% organic CAGR
Source: BCC Research, Nov. 2020
11% CAGR
Market for Medical Plastics
(millions of LBs)
Figures above include relevant Sustainable Solutions sales
Avient Corporation 118
Net Sales ($ millions)
8-10%
CAGR
What We Shared Today
C OMP OSI TE S
$74
$260
2017 2021E
11% organic CAGR
Figures above include relevant Sustainable Solutions sales
Avient Corporation 119
Avient Historic Growth Future Growth Assumptions
Net Sales ($ millions)
5G Capacity and Demand
Source: Mobile Experts: 5G Millimeter Wave 2019:
Radio Architecture and Outlook, March 2019
0
1
2
3
4
5
6
7
2019 2020 2021 2022 2023 2024 2025 2026 2027
D
e
n
se
U
rb
a
n
C
a
p
a
c
ity
(
G
B
/m
o
.)
https://www.avient.com/sites/default/files/2021-02/avient-ir-presentation-goldman-sachs-and-morgan-stanley.pdf
16
2 0 2 1 O U T L O O K
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
18
• 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 )
19
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 )
20
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% $360
2021 ORGANIC SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
21
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(2) COVID Response Applications: facemasks, personal protective equipment
Sales Growth Rate
Adjusted
Operating
Income$ millions
(1)
(2)
C A S H F LOW A N D L E V E R AGE
22
• 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
23
• 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
24
As a specialty formulator, we don’t
require significant capital
investment, as compared to the
base resin raw material suppliers
we purchase from.
SEGMENT HIGHLIGHTS
U.S. & Canada
50%
EMEA
26%
Asia
16%
Latin America
8%
2020 SEGMENT, END MARKET AND GEOGRAPHY
30
GEOGRAPHY REVENUESEGMENT FINANCIALS
Consumer
23%
Packaging
21%Industrial
15%
Wire & Cable
6%
Building &
Construction
6%
Electrical &
Electronics
4%
END MARKET REVENUE
Transportation
10%
Healthcare
15%
All data reflects 2020 Pro forma for acquisition of the Clariant Masterbatch business.
(1) The total company sales and EBITDA of $3,783M and $457M, respectively, include intercompany sales eliminations and corporate costs
$2,043M
$331M
$709M
$124M
$1,110M
$70M
Sales EBITDA
Distribution
Specialty Engineered Materials
Color Additives and Inks
$457M$3,783M
(1)
Packaging
35%
Consumer
23%
Healthcare
8%
Industrial
14%
Building &
Construction
8%
Transportation
7%
Wire & Cable
3%
Electrical &
Electronics
2%
C O L O R , A D D I T I V E S & I N K S
2 0 2 0 P F R E V E N U E | $ 2 . 0 B I L L I O N
US & Canada
31%
EMEA
40%
Asia
22%
Latin America
7%
END MARKET REGION
31
2020 figures Pro forma for acquisition of the Clariant Masterbatch business
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
24%
Healthcare
10%
Packaging
6%
Wire & Cable(1)
24%
Electrical &
Electronics
13%
Transporation
11%
Industrial
10%
Building &
Construction
2%
2 0 2 0 R E V E N U E | $ 7 0 9 M I L L I O N
END MARKET
US & Canada
58%
EMEA
23%
Asia
19%
REGION
32
(1) Approximately 50% of Wire and Cable sales are associated with Fiber Optic Cabling
D I S T R I B U T I O N
2 0 2 0 R E V E N U E | $ 1 . 1 B I L L I O N
Healthcare
29%
Consumer
25%
Packaging
2%
Industrial
20%
Transportation
14%
Electrical &
Electronics
5%
Building &
Construction
4%
Wire & Cable
1%
US & Canada
82%
Asia
3%
Latin
America
15%
END MARKET REGION
K E Y S U P P L I E R S
33
AMERICAS EMEA ASIA
Consumer
26%
Healthcare
19%
Packaging
13%
Industrial
16%
Wire & Cable
7%
Building &
Construction
5%
Electrical &
Electronics
4%
Packaging
34%
Consumer
16%Healthcare
5%
Industrial
17%
Wire & Cable
10%
Building &
Construction
8%
Electrical &
Electronics
3%
Packaging
32%
Consumer
27%
Healthcare
12%
Industrial
6%
Wire & Cable
6%
Building &
Construction
4%
Electrical &
Electronics
9%
Transportation
10%
Transportation
7%
Transportation
4%
2020 figures Pro forma for acquisition of the Clariant Masterbatch business
T O T A L C O M PA 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
(58% of sales) (26% of sales) (16% of sales)
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.
https://www.avient.com/sites/default/files/2022-04/Sustainable Material Answers_ Recycled PET 2022.pdf
utm_source=eBook&utm_id=rPET
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https://www.avient.com/sites/default/files/2022-04/Sustainable Material Answers_ Circular Economy 2022_1.pdf
Contact us today
https://avient.me/3FxhNrw
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https://www.avient.com/idea-center/idea-center?all=true
Nylon 66
Explore the differences between nylon 6 and nylon 66 to find out which is right for you.
https://www.avient.com/sites/default/files/2023-08/AVNT August IR Presentation w NonGAAP Recs%5B40%5D.pdf
GUIDANCE
( T O TA L C O M PA N Y )
11
$845
$824
Guidance Actual
$130 $131
Guidance Actual
Sales Adjusted EBITDA
(in millions)
$0.60
$0.63
Guidance Actual
Adjusted EPS
(in millions)
Q2 2023 PERFORMANCE VS.
GUIDANCE
( T O TA L C O M PA N Y )
12
15.4%
15.9%
Guidance Actual
Adjusted EBITDA Margin %
Better-than-expected margins
driven by:
• Favorable mix - strong
demand for composite
applications
• Raw material deflation
Q2 EBITDA BRIDGE
( T O TA L C O M PA N Y )
13
($ millions)
CAI:
Price / Mix 7)
Deflation 11)
SEM:
Price / Mix 2)
Deflation 6)
Net Price Benefit 26)
Wage and Energy Inflation (10)
Cost Reductions 13)
FX (2)
Q2 2023 Actual $131)
Adjusted
EBITDA
Q2 2022 Pro Forma $ 172)
Demand (68) • Demand conditions vs.
https://www.avient.com/sites/default/files/2020-10/2020-gravi-tech-processing-guide.pdf
Base Resin ABS PA PBT PC PE PEEK PP PPS
Barrel Temperatures °F (°C)
Rear Zone 400–475(200–250)
480–540
(248–282)
480–520
(250–270)
480–570
(250–300)
400–445
(200–230)
660–700
(350–475)
400–440
(200–225)
520–600
(270–300)
Center Zone 410–480(205–253)
490–550
(254–287)
485–525
(251–273)
500–580
(260–305)
410–455
(207–237)
670–710
(357–385)
410–450
(205–230)
550–610
(285–310)
Front Zone 420–490(210–257)
500–560
(260–293)
490–530
(254–276)
515–590
(267–310)
420–465
(213–243)
680–720
(363–400)
420–455
(215–235)
570–620
(300–320)
Nozzle 425–500(215–260)
510–570
(265–298)
490–540
(254–282)
530–600
(275–315)
430–475
(220–250)
700–730
(370–395)
430–460
(220–240)
610–620
(320–325)
Melt Temperature 425–515(215–270)
510–570
(265–298)
490–540
(254–282)
530–615
(275–325)
430–495
(220–260)
700–725
(370–385)
430–475
(220–250)
610–635
(320–335)
Mold Temperature 140–200(60–90)
150–300
(65–148)
140–280
(60–137)
160–240
(70–115)
80–140
(25–60)
300–400
(150–200)
80–140
(25–60)
190–300
(90–150)
Drying Parameters
190 (90)
2–4 Hours
0.01%–0.15%
180 (82)
4–5 Hours
0.10%–0.20%
275 (135)
3–4 Hours
0.02%–0.04%
250 (125)
3–4 Hours
0.02%
160 (70)
2 Hours
300 (150)
3–4 Hours
0.10%
160 (70)
2 Hours
280 (135)
2–3 Hours
0.01%–0.20%
Nozzle Type General Purpose Nylon or Reverse Taper General Purpose General Purpose General Purpose General Purpose General Purpose General Purpose
Injection Velocity1 2–5 in/sec; 50–127 mm/sec
Injection Pressure Medium to high (may range from 1,000–4,000 psi; 7-28 Mpa)
Back Pressure 50–100 psi; 0.3–0.7 Mpa
Screw Speed 25–75 RPM
Cushion 0.125–0.250 in; 3–6 mm
Screw Compression Ratio2 2.0:1–2.5:1
Processing Guide 3
Base Resin ABS PA PBT PC PE PEEK PP PPS
Barrel Temperatures °F (°C)
Rear Zone 400–475(200–250)
480–540
(248–282)
480–520
(250–270)
480–570
(250–300)
400–445
(200–230)
660–700
(350–475)
400–440
(200–225)
520–600
(270–300)
Center Zone 410–480(205–253)
490–550
(254–287)
485–525
(251–273)
500–580
(260–305)
410–455
(207–237)
670–710
(357–385)
410–450
(205–230)
550–610
(285–310)
Front Zone 420–490(210–257)
500–560
(260–293)
490–530
(254–276)
515–590
(267–310)
420–465
(213–243)
680–720
(363–400)
420–455
(215–235)
570–620
(300–320)
Nozzle 425–500(215–260)
510–570
(265–298)
490–540
(254–282)
530–600
(275–315)
430–475
(220–250)
700–730
(370–395)
430–460
(220–240)
610–620
(320–325)
Melt Temperature 425–515(215–270)
510–570
(265–298)
490–540
(254–282)
530–615
(275–325)
430–495
(220–260)
700–725
(370–385)
430–475
(220–250)
610–635
(320–335)
Mold Temperature 140–200(60–90)
150–300
(65–148)
140–280
(60–137)
160–240
(70–115)
80–140
(25–60)
300–400
(150–200)
80–140
(25–60)
190–300
(90–150)
Drying Parameters
190 (90)
2–4 Hours
0.01%–0.15%
180 (82)
4–5 Hours
0.10%–0.20%
275 (135)
3–4 Hours
0.02%–0.04%
250 (125)
3–4 Hours
0.02%
160 (70)
2 Hours
300 (150)
3–4 Hours
0.10%
160 (70)
2 Hours
280 (135)
2–3 Hours
0.01%–0.20%
Nozzle Type General Purpose Nylon or Reverse Taper General Purpose General Purpose General Purpose General Purpose General Purpose General Purpose
Injection Velocity1 2–5 in/sec; 50–127 mm/sec
Injection Pressure Medium to high (may range from 1,000–4,000 psi; 7-28 Mpa)
Back Pressure 50–100 psi; 0.3–0.7 Mpa
Screw Speed 25–75 RPM
Cushion 0.125–0.250 in; 3–6 mm
Screw Compression Ratio2 2.0:1–2.5:1
Comments
1.