https://www.avient.com/sites/default/files/2020-11/gls-tpes-soft-touch-selection-guide.pdf
GLS™ TPES
FOR SOFT TOUCH
PACKAGING SOLUTIONS
PRODUCT SELECTION GUIDE
SOFT TOUCH
IS A PACKAGING
DIFFERENTIATOR
You’ve heard it before: Consumers
view packaging as an extension of the
product and their first perception of
value is often based on the look and
feel of the package.
GENERAL PURPOSE GLS TPES FOR PACKAGING
SOFT TOUCH GRIPS BONDING TO POLAR SUBSTRATES
GENERAL PURPOSE GLS TPES FOR PACKAGING
SOFT TOUCH GRIPS BONDING TO NON POLAR SUBSTRATES
Dynaflex™
G2711
Dynaflex™
G2780
Dynaflex™
G6713
Dynaflex™
G7960
Versalloy™
XL9045
Versaflex™
CL40
Aesthetics
Grippy, 43A
& translucent
Low tack, 84A
& translucent
Extra soft, 13A
& translucent
Rubbery, 60A
& opaque
Matte, 45A
& natural
Grippy, 40A
& water clear
Special
Characteristics
Grippy medical
grade
PP & PE OM Extra soft
General
purpose
High flow &
fast setup
Water clear
Regulatory
FDA, EU &
USP VI
FDA FDA & EU FDA FDA FDA & EU
Overmolding Polypropylene
Polypropylene &
Polyethylene
Polypropylene Polypropylene Polypropylene Polypropylene
Versaflex™
CL 2250
Versaflex™
OM 3060
Versaflex™
CE 3120-65
Versaflex™
CE 3620
Versollan™
RU 2205
Aesthetics
Grippy, 50A
& clear
Grippy, 59A
& clear
Silky feel, 65A
& matte finish
Silky feel, 65A
& matte finish
Grippy, 65A
& matte finish
Special
Characteristics
Clear overmold Clear overmold
Abrasion resistance
& high strength
Low compression set
& high flow
Abrasion resistance
& high strength
Regulatory FDA & USP VI FDA & USP VI UL 94
FDA &
ISO 10993-10
—
Overmolding Polycarbonate
Polycarbonate
& ABS
Polycarbonate,
ABS, Copolyester
& Nylon 12
Polycarbonate,
ABS, Copolyester
Polycarbonate,
ABS, Copolyester
& Nylon 12
1.844.4AVIENT
www.avient.com
Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2021-09/avnt-q2-2021-earnings-presentation.pdf
Q 2 2 0 2 1 P E R F O R M A N C E
U P D AT E
$69
$122
2020PF 2021
$0.42
$0.87
2020PF 2021
Q2 2021 – ORGANIC PERFORMANCE
( T O TA L C O M PA N Y )
4
Sales Adjusted Operating Income
$870
$1,235
2020PF 2021
+ 42%
Adjusted EPS
+ 77% + 107%
(in millions) (in millions)
(1) (1) (1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Q2 2021 SEGMENT PERFORMANCE
5
CAI
$488
$624
Sales
($ in millions)
SEM Distribution
$54
$86
Operating Income
+28%
+59%
$239
$404
Sales
$15
$24
Operating Income
+69%
+60%
(1)
$159
$241
Sales
$17
$37
Operating Income
+52%
+118%
(1)
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
SPECIALTY EBITDA MARGIN EXPANSION
6
CAI
(1) 2018-2020 financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
15.3% 15.2%
16.2%
18.5%
2018 2019 2020 YTD 2021
14.8% 15.2%
17.6%
19.1%
2018 2019 2020 YTD 2021
(1)
SEM
• Continued portfolio transformation to
high-growth end markets and
sustainable solutions
• Clariant Masterbatch synergy realization
• Investments in composites and outdoor
high performance applications drive
growth and mix improvements
CAI EBITDA MARGIN EXPANSION
7
Legacy CAI
18.9% 18.9%
20.3%
2019 2020 YTD 2021
Legacy
Clariant MB
11.9%
13.8%
16.8%
2019 2020 YTD 2021
• Synergy capture translating to the
bottom line
• Positive mix with growth in healthcare,
consumer and packaging end-markets
• World-class vitality index of 35%
represents sales from products
introduced in the last five years.
ColorWorks innovation centers are specially
designed to foster imagination and enable
creative exploration of innovative solutions
• Focus on customers’ sustainability initiatives
through recyclability and post-consumer
recycled materials for packaging applications
• Supports 8-12% long-term revenue growth
expectations across our sustainable solutions
portfolio
8
2020 Pro forma $870 $69
Sustainable Solutions 66 37% 26
Healthcare 29 20% 7
Composites 12 36% 6
Growth in Asia / LATAM 47 39% 11
Other 190 48% 22
Sub-total $1,214 40% $141
COVID Response Applications (15) (8)
FX Impact 36 4
Synergies 11
Incentives, Travel, Other Employee Costs (26)
2021 Actual $1,235 42% $122
Q2 2021 ORGANIC SALES AND OPERATING INCOME
( T O TA L C O M PA N Y )
9
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
Sales Growth Rate
Adjusted
Operating
Income$ millions
(1)
10
Q2 2020PF Q2 2021
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(2) Financial information is presented on a constant currency basis
(1,2)
(44% of total revenue)
(56% of total revenue)
Q2 END MARKET SALES PERFORMANCE
+26%
+38%
+46%
+103%
+51%
+9%
+7%
+67%
Energy Telecom Building &
Construction
Transportation Industrial Healthcare Packaging Consumer
Q2 YEAR-OVER-YEAR EBITDA BRIDGE
Q2 2020 Pro forma $ 106
Demand 69
11
Adjusted
EBITDA$ millions
• Demand impact driven by
growth in sustainable
solutions and consumer
products
• Price increases more than
offset raw material and
supply chain impacts
(1) Financial information is pro forma to include a full year of Clariant Masterbatch business acquisition
(1)
CAI:
Price / Mix 40
Inflation (32)
SEM:
Price / Mix 23
Inflation (18)
Distribution:
Price / Mix 81
Inflation (77)
Net Price Benefit 17
Supply Chain Disruptions (14)
COVID Response Applications (8)
Synergies 11
Incentives, Travel, FX, Other (22)
Q2 2021 Actual $ 159
Q1 2021 Actual $ 161
CAI:
Price / Mix 32
Inflation (22)
SEM:
Price / Mix 15
Inflation (9)
Distribution:
Price / Mix 50
Inflation (48)
Net Price Benefit 18
Supply Chain Disruptions (12)
Demand / Seasonality (6)
Other (2)
Q2 2021 Actual $ 15912
Adjusted
EBITDA$ millions
• Price increases more than
offset raw material and
freight inflation impacts
• Demand impact driven by
Q2 seasonality for the
business
Q1 TO Q2 SEQUENTIAL EBITDA BRIDGE
Q 3 A N D F U L L Y E A R
2 0 2 1 O U T L O O K
$74
$98
2020 2021E
$0.46
$0.68
2020 2021E
ORGANIC GROWTH PROJECTIONS – Q3
( T O TA L C O M PA N Y )
14
Sales Adjusted Operating Income
$925
$1,150
2020 2021E
+ 24%
Adjusted EPS
+ 32% + 48%
(in millions) (in millions)
FULL YEAR GUIDANCE INCREASED
15
Sales Adj.
APPENDIX
Performance
Additives
15%
Pigments
15%
TiO2
12%
Dyestuffs
4%Polyethylene
10%
Nylon
5%
Polypropylene
4%
Other Raw
Materials
29%
Styrenic Block
Copolymer
6%
~1/3 hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
28
• In Q2 2021, several raw material markets
experienced significant price inflation and
tight inventory
o Average cost of hydrocarbon based materials
was up 45% year-over-year and 20%
sequentially
o Average cost of non-hydrocarbon based
materials was up 10% year-over-year and 8%
sequentially
• Additionally, we experienced other supply
chain challenges during Q2 related to raw
material spot purchases, freight constraints
and productivity loss as a result of these
shortages
Annual Purchases
RAW MATERIAL AND SUPPLY CHAIN UPDATE
Based on 2020 pro forma purchases, excludes Distribution business
SEGMENT DATA
U.S. & Canada
50%
EMEA
26%
Asia
16%
Latin America
8%
2021 YTD SEGMENT, END MARKET AND GEOGRAPHY
30
GEOGRAPHY REVENUESEGMENT FINANCIALS
Consumer
23%
Packaging
20%
Industrial
16%
Building and
Construction
9%
Telecommunications
4%
Energy
2%
END MARKET REVENUE
(1) Total company sales and EBITDA of $2,398M and $320M, respectively, include intercompany sales eliminations and corporate costs
All charts reflect YTD financials through June 30
$1,234M
$228M
$457M
$87M
$767M
$48M
Sales EBITDA
Distribution
Specialty Engineered Materials
Color Additives and Inks
$320M$2,398M
(1)
Transportation
12%
Healthcare
14%
Packaging
34%
Consumer
21%
Healthcare
7%
Industrial
16%
Building &
Construction
10%
Transportation
9%
Energy
2% Telecommunications
1%
C O L O R , A D D I T I V E S & I N K S
2 0 2 1 Y T D R E V E N U E | $ 1 . 2 B I L L I O N
US & Canada
31%
EMEA
42%
Asia
21%
Latin America
6%
END MARKET REGION
31
All charts reflect 2021 YTD financials through June 30
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
28%
Healthcare
10%
Packaging
6%
Telecommunications
16%
Industrial
12%
Transportation
11%
Building &
Construction
10%
Energy
7%
2 0 2 1 Y T D R E V E N U E | $ 4 5 7 M I L L I O N
END MARKET
US & Canada
54%
EMEA
26%
Asia
20%
REGION
32
All charts reflect 2021 YTD financials through June 30
D I S T R I B U T I O N
Healthcare
27%
Consumer
22%
Packaging
5%
Industrial
20%
Transportation
16%
Building and
Construction
8%
Energy
1%
Telecommunications
1%
US & Canada
81%
Asia
4%
Latin
America
15%
END MARKET REGION
K E Y S U P P L I E R S
2 0 2 1 Y T D R E V E N U E | $ 7 6 7 M I L L I O N
33
All charts reflect 2021 YTD financials through June 30
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
Packaging
30%
Consumer
27%Healthcare
11%
Industrial
15%
Building &
Construction
5%
Telecommunications
2% Energy
2%
Asia
(16% of sales)
Transportation
8%
Packaging
32%
Consumer
13%
Healthcare
5%
Industrial
18%
Building &
Construction
11%
Telecommunications
5%
Energy
4%
EMEA
(26% of sales)
Transportation
12%
34
Consumer
25%
Healthcare
19%
Packaging
11%
Industrial
16%
Building &
Construction
10%
Telecommunications
4%
Energy
2%
US &
Canada
(50% of sales)
Transportation
13%
Packaging
40%
Consumer
33%
Healthcare
4%
Industrial
10%
Building &
Construction
5%
Telecommunications
1%
LATAM
(8% of sales)
Transportation
7%
All charts reflect 2021 YTD financials through June 30
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Dollars in millions, except for per share data)
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 from continuing operations 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 from continuing operations attributable to Avient shareholders $ 68.8 $ 11.7 $ 80.5
Net income / EPS $ 0.74 $ 0.13 $ 0.87
Weighted-average diluted shares 92.4 92.4 92.4
Three Months Ended
September 30, 2020
Reconciliation to Condensed Consolidated Statements of Income
GAAP
Results
Special
Items
Adjusted
Results
Operating income $ 33.5 $ 40.4 $ 73.9
Income from continuing operations before income taxes $ 5.3 $ 50.0 $ 55.3
Income tax expense - GAAP (2.7) — (2.7)
Income tax impact of special items — (12.7) (12.7)
Tax adjustments — 3.0 3.0
Net income attributable to noncontrolling interests (0.9) — (0.9)
Net income from continuing operations attributable to Avient shareholders $ 1.7 $ 40.3 $ 42.0
Net income / EPS $ 0.02 $ 0.44 $ 0.46
Weighted-average diluted shares 91.9 91.9 91.9
Three Months Ended
Year Ended
December 31,
Reconciliation to Pro Forma Adjusted EBITDA
June 30,
2021
March 31,
2021
June 30,
2020 2020 2019
Net income from continuing operations – GAAP $ 69.4 $ 79.7 $ 23.4 $ 133.8 $ 75.7
Income tax expense 20.4 22.9 7.9 5.2 33.7
Interest expense 19.5 19.3 16.2 74.6 59.5
Depreciation and amortization from continuing operations 33.8 37.1 20.9 115.0 78.1
EBITDA $ 143.1 $ 159.0 $ 68.4 $ 328.6 $ 247.0
Special items, before tax 14.2 2.4 2.4 66.2 61.7
Interest expense included in special items — — (0.5) (10.1) —
Depreciation and amortization included in special items 1.4 (0.5) (1.2) (3.2) —
Adjusted EBITDA $ 158.7 $ 160.9 $ 69.1 $ 381.6 $ 308.7
Clariant MB pro forma adjustments(1) — — 37.0 75.1 133.2
Pro forma adjusted EBITDA $ 158.7 $ 160.9 $ 106.1 $ 456.7 $ 441.9
(1) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
1
Reconciliation of EBITDA by Segment
Three Months Ended
June 30,
Six
Months
Ended
June 30,
Year Ended
December 31,
2021 2020 2021 2020 2019 2018
Sales:
Color, Additives and Inks $ 624.4 $ 226.8 $ 1,233.7 $ 483.3 $ 1,502.9 $ 1,003.8
Specialty Engineered Materials 240.6 158.8 457.1 344.1 708.8 745.7
Distribution 404.4 238.8 767.1 528.3 1,110.3 1,192.2
Corporate and eliminations (34.2) (15.3) (60.4) (35.1) (79.9) (79.0)
Sales $ 1,235.2 $ 609.1 $ 2,397.5 $ 1,320.6 $ 3,242.1 $ 2,862.7
Operating income:
Color, Additives and Inks $ 86.3 $ 32.3 $ 175.1 $ 180.8 $ 147.4 $ 158.5
Specialty Engineered Materials 37.3 17.0 71.5 94.4 83.7 72.3
Distribution 23.7 14.6 47.7 69.5 75.4 71.5
Corporate and eliminations (39.2) (25.9) (65.8) (155.4) (149.7) (123.7)
Operating income $ 108.1 $ 38.0 $ 228.5 $ 189.3 $ 156.8 $ 178.6
Items below OI in Corporate:
Other income, net $ 1.2 $ 9.5 $ 2.7 $ 24.3 $ 12.1 $ (12.9)
Depreciation & amortization:
Color, Additives and Inks $ 25.3 $ 10.6 $ 52.6 $ 75.1 $ 42.7 $ 44.3
Specialty Engineered Materials 8.1 7.6 15.9 30.0 29.5 23.2
Distribution 0.2 0.1 0.4 0.7 0.5 0.7
Corporate and eliminations 0.2 2.6 2.0 9.2 5.4 4.4
Depreciation & Amortization $ 33.8 $ 20.9 $ 70.9 $ 115.0 $ 78.1 $ 72.6
EBITDA:
Color, Additives and Inks $ 111.6 $ 42.9 $ 227.7 $ 255.9 $ 190.1 $ 202.8
Specialty Engineered Materials 45.4 24.6 87.4 124.4 113.2 95.5
Distribution 23.9 14.7 48.1 70.2 75.9 72.2
Corporate and eliminations (39.0) (23.3) (63.8) (146.2) (144.3) (119.3)
EBITDA $ 143.1 $ 68.4 $ 302.1 $ 328.6 $ 247.0 $ 238.3
EBITDA as a % of Sales:
Color, Additives and Inks 17.9 % 18.9 % 18.5 % 17.0 % 18.9 % 19.4 %
Specialty Engineered Materials 18.9 % 15.5 % 19.1 % 17.6 % 15.2 % 14.8 %
Distribution 5.9 % 6.2 % 6.3 % 6.3 % 6.4 % 5.7 %
2
Reconciliation of Pro Forma EBITDA
- Color, Additives and Inks
Three Months Ended
June 30,
Six
Months
Ended
June 30,
Year Ended
December 31,
2021 2020 2021 2020 2019 2018
Sales:
Color, Additives and Inks $ 624.4 $ 226.8 $ 1,233.7 $ 1,502.9 $ 1,003.8 $ 1,046.5
Clariant MB pro forma
adjustments(1) — 261.1 — 540.4 1,118.6 1,209.8
Pro forma sales $ 624.4 $ 487.9 $ 1,233.7 $ 2,043.3 $ 2,122.4 $ 2,256.3
Operating income:
Color, Additives and Inks $ 86.3 $ 32.3 $ 175.1 $ 180.8 $ 147.4 $ 158.5
Clariant MB pro forma
adjustments(1) — 22.0 — 45.0 72.9 80.3
Pro forma operating income $ 86.3 $ 54.3 $ 175.1 $ 225.8 $ 220.3 $ 238.8
Depreciation & amortization:
Color, Additives and Inks $ 25.3 $ 10.6 $ 52.6 $ 75.1 $ 42.7 $ 44.3
Clariant MB pro forma adjustments(1) — 15.0 — 30.1 60.3 61.2
Pro forma depreciation & amortization $ 25.3 $ 25.6 $ 52.6 $ 105.2 $ 103.0 $ 105.5
EBITDA
Color, Additives and Inks $ 111.6 $ 42.9 $ 227.7 $ 255.9 $ 190.1 $ 202.8
Clariant MB pro forma
adjustments(1) — 37.0 — 75.1 133.2 141.5
Pro forma EBITDA $ 111.6 $ 79.9 $ 227.7 $ 331.0 $ 323.3 $ 344.3
Pro forma EBITDA as a % of Sales 17.9 % 16.4 % 18.5 % 16.2 % 15.2 % 15.3 %
(1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition
Three Months Ended
June 30, 2020
Reconciliation of Pro Forma Adjusted Earnings per
Share Avient
Special
Items
Adjusted
Avient
Clariant MB
Pro Forma
Adjustments(1)
Pro Forma
Adjusted
Avient
Sales $ 609.1 $ — $ 609.1 $ 261.1 $ 870.2
Operating income $ 38.0 $ 9.0 $ 47.0 $ 22.0 $ 69.0
Interest expense, net (16.2) — (16.2) (5.3) (21.5)
Other income, net 9.5 (6.6) 2.9 — 2.9
Income taxes (7.9) 0.2 (7.7) (3.8) (11.5)
Net income attributable to noncontrolling interests (0.4) — (0.4) — (0.4)
Net income from continuing operations attributable to
Avient shareholders $ 23.0 $ 2.6 $ 25.6 $ 12.9 $ 38.5
Weighted average diluted shares 91.8
Pro forma adjusted EPS $ 0.42
(1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition
3
Year Ended
December 31, 2020
Reconciliation of Pro Forma Adjusted
Earnings per Share Avient
Special
Items
Adjusted
Avient
Clariant MB
Pro Forma
Adjustments(1)
Pro Forma
Adjusted
Avient
Sales $ 3,242.1 $ — $ 3,242.1 $ 540.4 $ 3,782.5
Operating income $ 189.3 $ 73.7 $ 263.0 $ 45.0 $ 308.0
Interest expense, net (74.6) 10.1 (64.5) (18.1) (82.6)
Other income, net 24.3 (17.6) 6.7 — 6.7
Income taxes (5.2) (41.4) (46.6) (6.2) (52.8)
Net income attributable to noncontrolling
interests (1.8) — (1.8) — (1.8)
Net income from continuing operations
attributable to Avient shareholders $ 132.0 $ 24.8 $ 156.8 $ 20.7 $ 177.5
Weighted average diluted shares 90.6
Impact to diluted shares from January 2020 equity offering 1.5
Pro forma weighted average diluted shares 92.1
Pro forma adjusted EPS $ 1.93
(1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition
Year Ended
December 31, 2019
Reconciliation of Pro Forma Adjusted
Earnings per Share Avient
Special
Items
Adjusted
Avient
Clariant MB
Pro Forma
Adjustments(1)
Pro Forma
Adjusted
Avient
Sales $ 2,862.7 $ — $ 2,862.7 $ 1,118.6 $ 3,981.3
Operating income $ 156.8 $ 71.7 $ 228.5 $ 72.9 $ 301.4
Interest expense, net (59.5) — (59.5) (33.4) (92.9)
Other income, net 12.1 (10.0) 2.1 — 2.1
Income taxes (33.7) (5.9) (39.6) (9.1) (48.7)
Net income attributable to noncontrolling
interests (0.2) — (0.2) — (0.2)
Net income from continuing operations
attributable to Avient shareholders $ 75.5 $ 55.8 $ 131.3 $ 30.4 $ 161.7
Weighted average diluted shares 77.7
Impact to diluted shares from January 2020 equity offering 15.3
Pro forma weighted average diluted shares 93.0
Pro forma adjusted EPS $ 1.74
(1) - Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects of the financing for the acquisition
4
AVNT Q2 2021 Earnings Presentation - Website NEW.pdf
AVNT Q2 2021 Earnings Presentation - Website.pdf
Final - 7.19 1158am Q2 21 IR Deck Version v2