https://www.avient.com/sites/default/files/2020-09/sustainabilityreport2018.pdf
FIBER-LINE SWELLCOAT™ WATER BLOCKING YARNS
support 5G antennae, data centers, and backbone
cable designs to prevent equipment damage and
signal attenuation due to water ingression in the
cables.
Sites and companies added to PolyOne’s portfolio as part of acquisitions are
audited as a part of our integration process to bring new sites into line with our standards.
These efforts are in line with our
commitment to sustainability and provide impact and credibility to
our operations around the world.
https://www.avient.com/sites/default/files/2021-08/avient-cdp-climate-change-questionnaire-2021.pdf
Our EH&S Committee, Sustainability Council, and associates are our first
line of defense in terms of assessing operational and business risks related to climate change
and ensuring we are continually making progress and improvements to our goals.
Allocation challenges Please explain what would help
you overcome these challenges
Diversity of product lines makes accurately accounting for
each product/product line cost ineffective
Line level metering of electricity and
natural gas use.
Avient plans to track energy use and production volume at the manufacturing line level.
https://www.avient.com/sites/default/files/2024-10/Avient CDP Climate Change %26 Water Submission 20241001.pdf
This period is in line with Avient's objective of achieving operational carbon neutrality by 2050.
This will help keep our strategies in line with our sustainability goals and financial plans
Row 2
(7.27.1) Allocation challenges
288
Select from:
☑ Diversity of product lines makes accurately accounting for each product/product line cost ineffective
(7.27.2) Please explain what would help you overcome these challenges
Line level metering of electricity and natural gas use.
https://www.avient.com/sites/default/files/2024-03/Terms and Conditions of Sale for Finland.pdf
Seller's invoices will include value added tax, where
applicable, and such value added tax shall be a separate line item on
the invoice.
11.
https://www.avient.com/sites/default/files/2024-03/Terms and Conditions of Sale for the United Kingdom.pdf
Seller’s invoices will include value added
tax (or equivalent or similar taxes), and such taxes shall be a separate
line item on the invoice.
https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Investor Presentation_website w Non-GAAP.pdf
Q1 2023
( T O TA L C O M PA N Y )
$846
$829
Q1 23 Q1 24
$134
$143
Q1 23 Q1 24
17.3%
Sales Adjusted EBITDA
(in millions)
$0.63
$0.76
Q1 23 Q1 24
Adjusted EPS
(in millions)
+ 7% + 21%
Sales Adjusted EBITDA Adjusted EPS
9
- 2%
15.8%
+150 bps
*
*
* Adjusted EBITDA Margin %
Q1 2024 SEGMENT PERFORMANCE
( C O L O R , A D D I T I V E S & I N K S )
$537
$515
Q1 23 Q1 24
$91
$97
Q1 23 Q1 24
18.8%
Sales Adjusted EBITDA
(in millions) (in millions)
+ 7%
Sales Adjusted EBITDA
10
- 4%
17.0%
+180 bps
*
*
* Adjusted EBITDA Margin %
• Year over year demand
continues to improve for the
segment but slowly due to
continued weakness in Europe
• Raw material deflation & cost
reduction actions primary drivers
of adjusted EBITDA growth and
margin expansion of +180 bps vs
Q1 2023
Q1 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 )
$310
$314
Q1 23 Q1 24
$64
$73
Q1 23 Q1 24
23.2%
Sales Adjusted EBITDA
(in millions) (in millions)
+ 14%
Sales Adjusted EBITDA
11
+ 1%
20.8%
+240 bps
*
*
* Adjusted EBITDA Margin %
• Sales growth in defense end
market offset by weaker
demand in telecommunications
end market
• Raw material deflation and
favorable mix impact from
defense sales primary drivers
of adjusted EBITDA growth and
margin expansion of +240 bps
vs Q1 2023
Q1 EBITDA BRIDGE
( T O TA L C O M PA N Y )
12
$ millions
CAI:
Price / Mix (1)
Deflation 16
SEM:
Price / Mix 4
Deflation 7
Net Price Benefit 26
Wage/Other Inflation (9)
FX (2)
Q1 2024 $143
Adjusted
EBITDA
Q1 2023 $ 134
Demand (6)
• Positive net price benefit:
o Favorable raw material
deflation in both segments
• Wage and other inflation more than
offset cost reductions/synergies
2 0 2 4 G U I D A N C E
FY 20 24 GUIDA NC E
Original Revised
Adjusted EBITDA $505 to $535 million $510 to $535 million
Adjusted EPS $2.40 to $2.65 $2.50 to $2.65
Interest Expense $105 to $110 million $105 million
Adjusted Effective Tax Rate 23% to 25% 23% to 25%
Capital Expenditures ~$140 million ~$140 million
14
Q2 2024: Adjusted EPS of $0.71
C E O “ T O P O F M I N D ”
F O C U S A R E A S
AREAS OF FOCUS
16
+7%
Drive Profitable Organic
Top-Line Growth with
Margin Expansion
Amplify Innovation Build Leadership & Talent
Pipeline
A P P E N D I X
19
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%
21
(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
22
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%
23
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%
24
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/2023-07/Avient-2022-Sustainability-Report.pdf
Companies acquired by Avient
go through a rigorous EH&S integration process to bring new
sites in line with our high standards and policies.
We have been working with internal
and external stakeholders to understand how we can achieve our commitment to become carbon
neutral in line with climate science.
These efforts are in line with our
commitment to sustainability and strengthen the health of our communities and operations around the world.
https://www.avient.com/sites/default/files/2024-08/Avient-2023-Sustainability-Report_5.pdf
We have been working with
internal and external stakeholders to understand how we can achieve our goal to become carbon neutral in line with climate
science.
These targets are in
line with prevailing climate science limits that keep global warming below 2 degrees Celsius as detailed by the
Paris Agreement and Science-Based Target Initiative (SBTi).
These
efforts are in line with our commitment to sustainability and strengthen the health of our communities and operations worldwide.
https://www.avient.com/sites/default/files/2024-08/Avient 2023 Sustainability Report_6.pdf
We have been working with
internal and external stakeholders to understand how we can achieve our goal to become carbon neutral in line with climate
science.
These targets are in
line with prevailing climate science limits that keep global warming below 2 degrees Celsius as detailed by the
Paris Agreement and Science-Based Target Initiative (SBTi).
These
efforts are in line with our commitment to sustainability and strengthen the health of our communities and operations worldwide.
https://www.avient.com/investor-center/news/avient-announces-first-quarter-2023-results
in line with guidance