https://www.avient.com/sites/default/files/2022-11/AVNT Q3 2022 Earnings Presentation - Website Final.pdf
O P S )
16
Sales Adjusted EBITDA
$818
$823
2021 2022
+ 1%
Adjusted EPS
+ 8% - 3%
(in millions) (in millions)
(+ 9% excluding FX) (+ 18% excluding FX) (+ 5% excluding FX)
Q3 EBITDA BRIDGE
( P R O F O R M A T O TA L C O M PA N Y )
17
Price increases more than
offset raw material and
supply chain impacts
$ millions
CAI:
Price / Mix 68
Inflation (44)
SEM:
Price / Mix 41
Inflation (26)
Net Price Benefit 39
Wage and Energy Inflation (14)
Clariant Color Integration Synergies 6
Incentives, Other Employee Costs 14
FX (11)
Q3 2022 $137
Adjusted
EBITDA
Q3 2021 $ 142
Demand (39)
Q3 2022 SEGMENT PERFORMANCE
18
CAI
$587
$566
Sales
($ in millions)
$93 $93
EBITDA
SEM Pro Forma
$326 $319
Sales
$70
$62
EBITDA
(+ 4% excluding FX)
- 4% - 2%
(+ 5% excluding FX)
Flat
(+ 7% excluding FX)
- 11%
(- 7% excluding FX)
$500
$585
Cont.
https://www.avient.com/sites/default/files/resources/PolyOne%2520Standard%2520Quality%2520Response_2016_6_9.pdf
ISO 14001 registration can be considered, however,
when the business case shows there to be a mutual benefit with our key customers.
https://www.avient.com/sites/default/files/2020-10/2020-gravi-tech-design-guide-.pdf
KEY CHARACTERISTICS
The primary features and benefits
of Gravi-Tech formulations are:
• Customized density, offering a wide range of
specific gravities from 1.5 to 11 gm/cm3
• Broad modulus range, from very flexible to
very rigid grades
• Corrosion resistance, withstanding oxidation
for long-term use and benefit
• Chemical resistance, withstanding fuels, oils
and other harsh chemicals
Additional features include:
• Design flexibility and processing ease
• Good impact strength
• Elevated heat deflection temperature
6 Gravi-Tech Design Guide 7
CHAPTER 2 | PROCESS SETTINGS
Density Modified Formulations
Gravi-Tech™ polymer-metal composites are high-density materials developed as thermoplastic-based
alternatives to lead and other traditional metals .
https://www.avient.com/sites/default/files/2024-09/Terms and Conditions of Sale for Germany.pdf
AUSSETZUNG UND
BEENDIGUNG
If (i) Buyer is in default of performance of its
obligations towards Seller by more than fifteen
(15) days and fails to provide adequate assurance
of Buyer’s performance before the date of
scheduled delivery; or (ii) if Seller has reasonable
doubts with respect to Buyer’s performance of its
obligations and Buyer fails to provide to Seller
adequate assurance of Buyer’s performance
before the date of scheduled delivery and in any
case within thirty (30) days of Seller’s demand
for such assurance; or (iii) if Buyer becomes
insolvent or unable to pay its debts as they
mature, or goes into liquidation or any
bankruptcy proceeding shall be instituted by or
against Buyer or if a trustee or receiver or
administrator is appointed for all or a substantial
part of the assets of Buyer or if Buyer makes any
assignment for the benefit of its creditors; or (iv)
in case of non-compliance of Buyer with any
applicable law, statute ordinance, regulation,
code or standard (“Laws and Standards”), then
Seller may by notice in writing to Buyer, without
prejudice to any of its other rights: (a) demand
return and take repossession of any delivered
Products which have not been paid for and all
Wenn (i) der Käufer mit der Erfüllung seiner
Verpflichtungen gegenüber dem Verkäufer mehr
als fünfzehn (15) Tage in Verzug ist und es
versäumt, vor dem Datum der geplanten
Lieferung eine angemessene Sicherheit für die
Erfüllung der Verpflichtungen des Käufers zu
liefern; oder (ii) wenn der Verkäufer begründete
Zweifel an der Erfüllung der Verpflichtungen des
Käufers hat und der Käufer es versäumt, dem
Verkäufer vor dem Datum der geplanten
Lieferung, in jedem Fall aber innerhalb von
dreißig (30) Tagen nach Aufforderung durch den
Verkäufer, eine angemessene Sicherheit für die
Erfüllung der Verpflichtungen des Käufers zu
liefern; oder (iii) wenn der Käufer
zahlungsunfähig wird oder nicht in der Lage ist,
seine Schulden bei Fälligkeit zu begleichen, oder
eine Liquidation eingeleitet wird oder wenn ein
Konkursverfahren durch oder gegen den Käufer
eingeleitet wird oder wenn ein Treuhänder oder
Konkursverwalter oder Verwalter für das
gesamte oder einen wesentlichen Teil des
Vermögens des Käufers bestellt wird oder wenn
der Käufer eine Abtretung zugunsten seiner
Gläubiger vornimmt; oder (iv) im Falle der
10
costs relating to the recovery of the Products shall
be for the account of Buyer; and/or (b) suspend
its performance or terminate its order
confirmation for pending delivery of Products
unless Buyer makes such payment for Products
on a cash in advance basis or provides adequate
assurance of such payment for Products to Seller.
Buyer intends that its indemnification obligations
for claims related to or brought by anyone
directly or indirectly employed by Buyer or its
subcontractors will not be limited by any
provision of any worker’s compensation act,
disability benefit act or other employee benefit
act, and Buyer hereby waives immunity under
such acts to the extent it would bar recovery
under or prevent enforcement of Buyer’s
indemnification obligations.
https://www.avient.com/sites/default/files/2020-03/PolyOne_Website-12.19.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
• The time required to consummate the proposed acquisitions described in this presentation;
• The satisfaction or waiver of conditions in the purchase agreements for the proposed acquisitions;
• Any material adverse changes in the business of Clariant’s Color and Additive Masterbatch business;
• The ability to obtain required regulatory or other third-party approvals and consents and otherwise consummate the proposed acquisitions;
• Our ability to achieve the strategic and other objectives relating to the proposed acquisitions, including any expected synergies;
• Our ability to successfully integrate Clariant’s Color and Additive Masterbatch business and achieve the expected results of the acquisitions,
including, without limitation, the acquisitions being accretive;
• Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the
availability and cost of credit in the future;
• The effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks;
• Changes in polymer consumption growth rates and laws and regulations regarding plastics in jurisdictions where we conduct business;
• Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online;
• Fluctuations in raw material prices, quality and supply, and in energy prices and supply;
• Production outages or material costs associated with scheduled or unscheduled maintenance programs;
• Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters;
• An inability to raise or sustain prices for products or services;
• An ability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to acquisition and
integration, working capital reductions, costs reductions and employee productivity goals;
• Information systems failures and cyberattacks; and
• Other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates
and changes in the rate of inflation.
https://www.avient.com/sites/default/files/resources/Overmolding_of_Thermoplastic_Elastomers_Engineered_solutions_for_consumer_product_differentiation.pdf
TPEs provide a number of benefits to address these
market trends such as a soft-touch, non-slip grip, while maintaining required performance properties such as
good oil/grease resistance, toughness, abrasion resistance, and vibration damping.
https://www.avient.com/products/thermoplastic-elastomers/tpe-knowledge-center/injection-molding-guide/injection-molding-mold-design
Some part designs may benefit from the use of higher thermal conductivity materials such as beryllium copper.
https://www.avient.com/industries/packaging/beverage-packaging/water
Overview of benefits and applications for PTFE-free and non-halogen flame retardant additives
https://www.avient.com/sites/default/files/2024-10/Avient CDP Climate Change %26 Water Submission 20241001.pdf
5.12.6) Expected benefits
Select all that apply
☑ Increased transparency of upstream/downstream value chain
(5.12.7) Estimated timeframe for realization of benefits
Select from:
☑ 3-5 years
(5.12.8) Are you able to estimate the lifetime CO2e and/or water savings of this initiative?
And we did so while also yielding sustainable benefits in these eight key areas where our material science is having the most impact.
We also expect it will further the win-win
benefit trend for both our planet and Avient.
https://www.avient.com/sites/default/files/2021-12/AVNT 2021 Investor Day_0.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
• Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future;
• The effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks;
• The current and potential future impact of the COVID-19 pandemic on our business, results of operations, financial position or cash flows, including without any limitation, any supply chain and logistics issues;
• Our ability to achieve the strategic and other objectives relating to the acquisition of Clariant’s Color business, including any expected synergies;
• Changes in polymer consumption growth rates and laws and regulations regarding plastics in jurisdictions where we conduct business;
• Fluctuations in raw material prices, quality and supply, and in energy prices and supply;
• Production outages or material costs associated with scheduled or unscheduled maintenance programs;
• Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters;
• An inability to achieve the anticipated financial benefit from initiatives related to acquisition and integration working capital reductions, cost reductions and employee productivity goals;
• Our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends;
• Information systems failures and cyberattacks;
• Our ability to consummate and successfully integrate acquisitions;
• Amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions; and
• Other factors described in our Annual Report on Form 10-K for the year ended December 31, 2020 under Item 1A, “Risk Factors.”
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
.)