Avient Corporation · NYSE:AVNT

Avient — Investor Day (December 2024)

64 slides from Avient's investor day presentation, Dec 4, 2024

Slide 1: Welcome! Avient Investor Day
Welcome! AVIENT INVESTOR DAY December 4, 2024
Slide 2: Agenda and presenters
Ashish Khandpur Woon Keat Moh Chris Pederson Mike Mosley Jamie Beggs Q&A Introduction and SEGMENT STRATEGY: SEGMENT STRATEGY: SPOTLIGHT: Summary and financials strategic overview Color, Additives & Inks Specialty Engineered Building new platforms Materials of scale in Advanced composites Copyright ©
Slide 3: Disclaimer
Disclaimer Forward-looking statements Certain statements contained in or incorporated by reference into this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or foreca
Slide 4: Introduction & strategic overview
Introduction & strategic overview Ashish Khandpur AVIENT INVESTOR DAY December 4, 2024
Slide 5: Great companies create value by...
Great companies create value by... making the whole balancing driving disciplined to be greater than the microscope processes to execute the sum of parts and the telescope and deliver results Copyright © 2024 . Avient Corporation. All Rights Reserved 5
Slide 6: Key messages
Key messages Our primary focus is on organic revenue growth and margin expansion ► intersect secular trends and high growth markets with our technologies ► catalyze growth in our core build businesses in high growth Avient is evolving to markets its next phase as an ► innovator of materials solution
Slide 7: Avient at a glance...
Avient at a glance... Specialty 2023 sales by end market Engineered Materials PACKAGING 36% 23% SEM CONSUMER 2023 sales 19% by business segment Color, INDUSTRIAL Additives 64% 16% $3.1B 9,000+ & Inks CAI TRANSPORTATION 10% BUILDING & CONSTRUCTION US, 9% 41% Canada 2011 LATAM HEALTHCARE 7% 5% DEFENSE
Slide 8: The fast-changing world creating opportunities for us...
The fast-changing world creating opportunities for us... Our customers Build market-centric Create new need our help... solutions businesses differentiated solutions bringing together all Avient at scale there are • technology, • regulatory, CAI • Color, UV durability SEM • geopolitical and • Lightw
Slide 9: Intersecting secular trends and high growth markets with our technologies
Intersecting secular trends and high growth markets with our technologies to create product platforms of scale AVIENT GROWTH VECTORS Housing shortage Composites for building and construction Composites for electrification and energy Increased power generation and distribution needs Flame retardants
Slide 10: Strategic approach to drive sustainable growth: catalyze the core
Strategic approach to drive sustainable growth Avient sales growth Catalyze 1. Enhanced customer focus the core 2. Solutions from across all Avient 3. Eliminate complexity of portfolios, go-to-market models and organization 4. Amplify innovation to grow double-digits in prioritized businesses throug
Slide 11: Strategic approach to drive sustainable growth: build new platforms
Strategic approach to drive sustainable growth Avient sales growth Build new 1. Play bigger and bolder in high growth markets and portfolios supported by secular trends to platforms create product platforms of scale of scale 2. Prioritize company-level growth vectors meeting the four-point criteria
Slide 12: Catalyze the core – some examples today...
Catalyze the core – some examples today... Healthcare Drug delivery devices Engineered materials Functional additives Composites for for healthcare for lightweighting Defense and law enforcement in Color, Additives and Inks in Specialty Engineered Materials in Color, Additives and Inks in Specialty
Slide 13: Building new platforms of scale – some examples today...
Building new platforms of scale – some examples today... Non-PFAS functional Composites for building Composites for electrification additives and construction and energy in Color, Additives and Inks in Specialty Engineered Materials in Specialty Engineered Materials Copyright © 2024 . Avient Corpora
Slide 14: Strategic approach to drive sustainable growth
Strategic approach to drive sustainable growth Avient sales growth ► Prioritizing 2 Portfolios in high growth markets ► differently grow faster than core – building GROWING AT sizeable businesses of scale rapidly S PLU 10% BUILD NEW PLATFORMS OF SCALE GROWING ► Creating “space” AT P + 1 Core grows a
Slide 15: Strategic drivers
Strategic drivers Portfolio Amplify Digital Leadership, talent for operational excellence prioritization innovation and culture and growth for the Avient of the future Copyright © 2024 . Avient Corporation. All Rights Reserved 15
Slide 16: Portfolio prioritization & building new trajectories of growth
Portfolio prioritization & building new trajectories of growth 1 1. Portfolio view SALES 2 2. Launch Growth Maturity Decline 3 3. TIME Copyright © 2024 . Avient Corporation. All Rights Reserved 16
Slide 18: Amplify innovation
Amplify innovation EXISTING EXISTING EVOLVING EMERGING Panels for Building Modular flame & Construction retardant panels Custom composite panels Integrated flame-retardant panels Multifunctional composite panels Decking Color-stable, reinforcements permanent anti-stat decking Functional additives Co
Slide 19: Digital
Digital Manufacturing Color Marketing execution design content system EXPECTED BENEFITS EXPECTED BENEFITS EXPECTED BENEFITS digital tools, Higher run-rates, improved Reduction in time-to-market, Faster generation/repurposing data-driven insights yields, reduced downtime and use of alternative formul
Slide 21: Our evolution...thinking differently about who we are
Our evolution...thinking differently about who we are Innovator of materials solutions to help our customers succeed, while enabling a sustainable world Copyright © 2024 . Avient Corporation. All Rights Reserved 21
Slide 22: Our evolution...thinking differently about who we are
Our evolution...thinking differently about who we are materials solutions OUR PURPOSE is to be the... platforms mindset Innovator of materials solutions Innovator of to help our customers succeed, materials solutions to help our customers succeed, higher focus on while enabling a sustainable world w
Slide 23: Innovator of materials solutions to help our customers succeed
▶ OUR PURPOSE Innovator of materials solutions to help our customers succeed, while enabling a sustainable world ▶ STRATEGIC Intersecting high growth markets and Catalyze the core GROWING AT GDP+ APPROACH secular trends with our technologies to GROWING create product platforms of scale Build new pla
Slide 24: Redesigning organizations & compensation to drive strategy
Redesigning organizations & compensation to drive strategy CAI • Reorganized under a single global leadership Compensation Colors, eliminated structure and complexity Additives • Designed a new and Inks “play to win” compensation plan SEM focused organizations for growth vectors directly to Specialt
Slide 25: Strong and committed team leading the change
Strong and committed team leading the change A L SO H ER E T OD A Y NEW NEW Woon Keat Moh Chris Pederson John Midea Jamie Beggs Amy Sanders Phil Clark SVP and President SVP and President SVP, Global Ops and SVP and SVP, General Counsel SVP and Color, Additives and Inks Specialty Engineered Process I
Slide 26: Color, Additives and Inks
Color, Additives and Inks SEGMENT STRATEGIC REVIEW Woon Keat Moh AVIENT INVESTOR DAY December 4, 2024
Slide 27: Color, Additives and Inks – an overview
Color, Additives and Inks – an overview Solutions provider of • Differentiate and enhanced aesthetic appeal of our customers’ products #1 customized color and functionality • Enable sustainability through our solutions • Safeguard and preserve packaged contents to enhance and improve polymers • Exte
Slide 28: Our value
Our value we know color we are global we innovate #1 #1 18,000 color designs manufacturing footprint sustainable solutions completed annually in industry broadest portfolio in industry 400,000 550 14,500 color formulations commercial resources additives solutions globally serving locally and growing
Slide 29: Portfolio of CAI solutions
Portfolio of CAI solutions Specialty coatings Colorants Additives Screen printing inks Advanced dispersions Solid Recycling solutions Plastisol Silicone dispersion Liquid Flame retardants Water-based Vinyl formulations Barrier enhancements Bio-based Surface modifiers Copyright © 2024 . Avient Corpor
Slide 30: Strategic approach to drive sustainable growth
Strategic approach to drive sustainable growth CAI sales growth Build new platforms of scale Catalyze the core faster response to tailored to local enhance service customer needs needs...globally with digital tools Copyright © 2024 . Avient Corporation. All Rights Reserved 31
Slide 31: Intersecting secular trends and high growth markets: CAI portfolio
Intersecting secular trends and high growth markets with our technologies to create product platforms of scale Housing shortage Composites for building and construction Composites for electrification and energy Increased power generation and distribution needs CAI PORTFOLIO Flame retardants Heighten
Slide 32: Drug delivery devices
CATALYZE THE CORE Drug delivery devices $6B ADDRESSABLE MARKET MARKET DRIVERS & NEEDS AVIENT VALUE PROPOSITION • Regulatory compliance • ISO 13485 accredited sites • Reliable material quality and • Globally approved raw material uninterrupted supply portfolio • Supply chain risk mitigation • Strict
Slide 33: Plastic lightweighting
CATALYZE THE CORE Plastic lightweighting $5B ADDRESSABLE MARKET MARKET DRIVERS & NEEDS AVIENT VALUE PROPOSITION • Reducing material and • Best-in-class additives for energy usage a wide range of polymer processing temperatures • Achieving sustainability goals and objectives • Design services to simu
Slide 34: Non-PFAS functional additives
BUILD NEW PLATFORMS OF SCALE Non-PFAS functional additives $8B ADDRESSABLE MARKET MARKET DRIVERS & NEEDS • Regulatory restrictions with the removal of PFAS in multiple end markets • Major retailers requiring PFAS content declaration from suppliers • Enhanced plastic properties, aesthetics and proces
Slide 35: Non-PFAS additives
Non-PFAS additives EXISTING EVOLVING Non-PFAS polymer Non-PFAS processing aids medical tubing Non-PFAS pipette tips Non-PFAS Non-PFAS flame retardants solvent barrier Meeting tough flame Oil and solvent resistant retardancy regulations Copyright © 2024 . Avient Corporation. All Rights Reserved 36
Slide 36: Margin expansion opportunity
Margin expansion opportunity CAI margin expansion Schematic illustration only 1 Operating • Organic volume growth and +350bps leverage SG&A efficiencies from margin expansion prioritizing resources 2 Operating Mix • Increased sales in higher margin leverage improvement growth platforms such as Mix f
Slide 37: Color, Additives and Inks – strategic drivers
Color, Additives and Inks – strategic drivers Digital Leadership, talent Portfolio Amplify for operational excellence and culture prioritization innovation and growth for the Avient of the future 1 1. Prioritizing and expediting development and commercialization of high-growth functional additives 2
Slide 38: Specialty Engineered Materials
Specialty Engineered Materials SEGMENT STRATEGIC REVIEW Chris Pederson AVIENT INVESTOR DAY December 4, 2024
Slide 39: Specialty Engineered Materials – an overview
Specialty Engineered Materials – an overview Go-to partner for engineered material Product portfolio offers customized solutions to serve a range of end markets solutions to meet our customers’ most • Defense • Building & Construction • Specialty Consumer • Energy • Transportation • Industrial chall
Slide 40: Engineered materials
Engineered materials Strength, Durability Purity Elasticity Fire Barrier Conductivity Color and Sustainability Processing stiffness retardancy properties UV stability ease Healthcare Semiconductor Wire and cable Consumer Transportation Telecom devices manufacturing solutions goods Copyright © 2024 .
Slide 41: Composite materials
Composite materials Engineered fibers Tapes, fabrics Laminates, panels Pultruded components Shapes Long-fiber thermoplastics Electrical Ballistic Composite Fiber optic Outdoor high Trucks, infrastructure protection lumber cables performance rail, RV Copyright © 2024 . Avient Corporation. All Rights
Slide 42: Technology hybridization
Technology hybridization EXISTING EVOLVING Marine composite panels Building & construction composite panels Fire-retardant composite panels Next gen fire-retardant / Fire-retardant, UV resistant materials UV resistant composite utility poles UV resistance Fire retardants Insulators Composite utility
Slide 43: Intersecting secular trends and high growth markets: SEM portfolio
Intersecting secular trends and high growth markets with our technologies to create product platforms of scale SEM PORTFOLIO Housing shortage Composites for building and construction Composites for electrification and energy Increased power generation and distribution needs Flame retardants Heighten
Slide 44: Engineered materials for healthcare
CATALYZE THE CORE Engineered materials for healthcare $6B ADDRESSABLE MARKET • Global adoption of remote patient continuous glucose monitoring, respiratory remedies, and biopharmaceutical processes • Customers seek global suppliers, with required quality systems, that offer – Barrier properties to m
Slide 45: Composites for Defense and law enforcement
CATALYZE THE CORE Composites for Defense and law enforcement $5B ADDRESSABLE MARKET • Increase in NATO countries and defense spending • High demand for premium performance in military and law enforcement – reducing the weight burden • Strong demand for high performance helmets with capability to pro
Slide 46: Advanced Composites
BUILDING NEW PLATFORMS OF SCALE IN... Advanced Composites Mike Mosley AVIENT INVESTOR DAY December 4, 2024
Slide 47: Composites for building and construction
BUILD NEW PLATFORMS OF SCALE Composites for building and construction $20B ADDRESSABLE MARKET • Housing shortage driving up demand for construction materials • Composites replacing traditional materials like wood, steel – Avient has a strong position (decking, garage doors, ballistic panels etc.) •
Slide 48: Composites for electrification and energy
BUILD NEW PLATFORMS OF SCALE Composites for electrification and energy $8B ADDRESSABLE MARKET • Increasing electrification demands, expanding grid • Established Avient portfolio in electrical infrastructure • Demand driven by aging electrical infrastructure and grid hardening incentives (e.g. 170 mi
Slide 49: Specialty Engineered Materials – end markets we serve
Specialty Engineered Materials – end markets we serve Healthcare Defense Building and Energy construction Packaging Industrial Telecom Transportation Consumer Copyright © 2024 . Avient Corporation. All Rights Reserved 50
Slide 50: Our competitive advantage
Our competitive advantage Breadth and depth Global footprint Manufacturing and Quality, regulatory, of specialty solutions with localized material formulation and sustainability customer intimacy expertise • Engineered thermoplastics, • Operations in Americas, • Core competencies in fiber, • Strong
Slide 51: Margin expansion opportunity
Margin expansion opportunity SEM margin expansion Schematic illustration only 1 Operating • Organic volume growth and +300bps leverage SG&A efficiencies from margin expansion prioritizing resources 2 Operating Mix • Increased sales in higher margin leverage improvement growth platforms such as Mix c
Slide 52: Specialty Engineered Materials – strategic drivers
Specialty Engineered Materials – strategic drivers Digital Leadership, talent Portfolio Amplify for operational excellence and culture prioritization innovation and growth for the Avient of the future 1 1. “Catalyze the core” – leverage broad technology portfolio, applications expertise, and global
Slide 53: Summary and financials
Summary and financials Jamie Beggs AVIENT INVESTOR DAY December 4, 2024
Slide 54: The start of Avient's next chapter...
The start of Avient’s next chapter... Top line growth with Building the Avient Incentive plans EBITDA margin expansion of the future aligned to strategy ...building upon our foundational strengths Copyright © 2024 . Avient Corporation. All Rights Reserved 55
Slide 55: ….while enabling a sustainable world
….while enabling a sustainable world ENABLERS AND OUTCOMES Solutions to increase recycled content Enabling customers to advance and minimize plastic waste the circular economy Solutions to reduce weight and Shrinking carbon footprint and energy consumption decreasing emissions Solutions to preserve
Slide 57: Strategic approach to drive sustainable growth
Strategic approach to drive sustainable growth Avient sales growth Play bigger and bolder in high growth markets and portfolios supported by Build new 1. secular trends to create product platforms of scale platforms of scale 2. Prioritize company-level growth vectors meeting the four-point criteria
Slide 58: Pathway to 20%+ adjusted EBITDA margins
Pathway to 20%+ adjusted EBITDA margins Avient margin expansion Schematic illustration only 1 Operating • Organic volume growth and +400bps leverage SG&A efficiencies from prioritizing margin expansion 20%+ resources across the company +2% Strategic objective 2 +1% Operating Mix • Increased sales in
Slide 59: Organic revenue growth with margin expansion
Organic revenue growth with margin expansion LONG TERM FINANCIAL TARGETS +100 to +200bps above GDP Organic revenue growth Copyright © 2024 . Avient Corporation. All Rights Reserved 60
Slide 60: History of balanced capital deployment
History of balanced capital deployment Dividend Adj. Free cash flow use $ per share 2020– 2024 est. A GR C $1.08 % 15 $1.03 $1.00 $0.96 Debt Dividend paydown payments $0.88 30% $0.82 37% $0.79 $0.72 $0.58 $0.50 $0.42 6% 27% $0.34 M&A, Share $0.26 other buybacks $0.20 $0.16 2011 2012 2013 2014 2015 2
Slide 61: Disciplined capital allocation
Disciplined capital allocation PRIORITIZATION AND PHILOSHOPY Expected annual spend between 3-5% of revenue to 1 Capex support investment in organic growth 2 Dividends Increasing each year with underlying earnings growth 3 Debt pay down Target net debt to adjusted EBITDA less than 2.5x 4 Share repurc
Slide 62: Avient is a compelling investment thesis
Avient is a compelling investment thesis Portfolio ORGANIC GROWTH aligned to high growth market segments complemented by M&A over time and secular trends as needed Innovation MARGIN EXPANSION differentiation by hybridizing technologies and sustainable growth to create platforms at scale Global reach
Slide 63: << AVIENT
= aS i NC << AVIENT
Slide 64: Reconciliation of Non-GAAP Financial Measures (Unaudited)
Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except for per share data) Below is a reconciliation of non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. Financial information referenced

Avient — Investor Day (December 2024) on 6ix

Avient — Investor Day (December 2024)

Slide 1: Welcome! Avient Investor Day

Slide 2: Agenda and presenters

Slide 3: Disclaimer

Slide 4: Introduction & strategic overview

Slide 5: Great companies create value by...

Slide 6: Key messages

Slide 7: Avient at a glance...

Slide 8: The fast-changing world creating opportunities for us...

Slide 9: Intersecting secular trends and high growth markets with our technologies

Slide 10: Strategic approach to drive sustainable growth: catalyze the core

Slide 11: Strategic approach to drive sustainable growth: build new platforms

Slide 12: Catalyze the core – some examples today...

Slide 13: Building new platforms of scale – some examples today...

Slide 14: Strategic approach to drive sustainable growth

Slide 15: Strategic drivers

Slide 16: Portfolio prioritization & building new trajectories of growth

Slide 17: Amplify innovation

Slide 18: Amplify innovation

Slide 19: Digital

Slide 20: Our evolution

Slide 21: Our evolution...thinking differently about who we are

Slide 22: Our evolution...thinking differently about who we are

Slide 23: Innovator of materials solutions to help our customers succeed

Slide 24: Redesigning organizations & compensation to drive strategy

Slide 25: Strong and committed team leading the change

Slide 26: Color, Additives and Inks

Slide 27: Color, Additives and Inks – an overview

Slide 28: Our value

Slide 29: Portfolio of CAI solutions

Slide 30: Strategic approach to drive sustainable growth

Slide 31: Intersecting secular trends and high growth markets: CAI portfolio

Slide 32: Drug delivery devices

Slide 33: Plastic lightweighting

Slide 34: Non-PFAS functional additives

Slide 35: Non-PFAS additives

Slide 36: Margin expansion opportunity

Slide 37: Color, Additives and Inks – strategic drivers

Slide 38: Specialty Engineered Materials

Slide 39: Specialty Engineered Materials – an overview

Slide 40: Engineered materials

Slide 41: Composite materials

Slide 42: Technology hybridization

Slide 43: Intersecting secular trends and high growth markets: SEM portfolio

Slide 44: Engineered materials for healthcare

Slide 45: Composites for Defense and law enforcement

Slide 46: Advanced Composites

Slide 47: Composites for building and construction

Slide 48: Composites for electrification and energy

Slide 49: Specialty Engineered Materials – end markets we serve

Slide 50: Our competitive advantage

Slide 51: Margin expansion opportunity

Slide 52: Specialty Engineered Materials – strategic drivers

Slide 53: Summary and financials

Slide 54: The start of Avient's next chapter...

Slide 55: ….while enabling a sustainable world

Slide 56: ...and doing our part

Slide 57: Strategic approach to drive sustainable growth

Slide 58: Pathway to 20%+ adjusted EBITDA margins

Slide 59: Organic revenue growth with margin expansion

Slide 60: History of balanced capital deployment

Slide 61: Disciplined capital allocation

Slide 62: Avient is a compelling investment thesis

Slide 63: << AVIENT

Slide 64: Reconciliation of Non-GAAP Financial Measures (Unaudited)