Slide 1: Avient Corporation First Quarter 2024 Results and 2024 Financial Guidance
AVIENT CORPORATION FIRST QUARTER 2024 RESULTS AND 2024 FINANCIAL GUIDANCE (NYSE: AVNT) M AY 7 , 2 0 2 4
Slide 2: 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 3: Opening Remarks
OPENING REMARKS
Slide 4: Regional Demand Trends - Total Company
REGIONAL DEMAND TRENDS-TOTAL COMPANY Q1 SALES VS PY (EXCLUDING FX) US & Canada +2% EMEA Asia -6% Latin America Flat +2% Avient ex. FX -1.5% FX -0.5% Total Avient -2.0% 4
Slide 5: Q1 2024 Results
Q 1 2 0 2 4 R E S U LT S
Slide 6: Q1 2024 Performance vs. Q1 2023
Q1 2024 PERFORMANCE VS. Q1 2023 ( T O TA L C O M PA N Y ) Sales Adjusted EBITDA Adjusted EPS - 2% + 7% + 21% $0.76 $846 $143 $829 $134 $0.63 +150 bps 17.3%* 15.8%* Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 (in millions) (in millions) 6 * Adjusted EBITDA Margin %
Slide 7: Q1 2024 Segment Performance (Colors, Additives & Inks)
Q1 2024 SEGMENT PERFORMANCE (COLORS, ADDITIVES & INKS) Sales Adjusted EBITDA - 4% + 7% $537 $97 $515 $91 • Year over year demand continues to improve for the segment but slowly due to continued weakness in Europe +180 bps 18.8%* • Raw material deflation & cost 17.0%* reduction actions primary driver
Slide 8: Q1 2024 Segment Performance (Specialty Engineered Materials)
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 ) Sales Adjusted EBITDA + 1% + 14% $314 $73 • Sales growth in defense end $310 $64 market offset by weaker demand in telecommunications end market +240 bps 23.2%* • Raw material deflation and favorable mix impact fro
Slide 9: Q1 EBITDA Bridge
Q1 EBITDA BRIDGE ( T O TA L C O M PA N Y ) Adjusted $ millions EBITDA Q1 2023 $ 134 Demand (6) CAI: • Positive net price benefit: Price / Mix (1) o Favorable raw material Deflation 16 deflation in both segments SEM: • Wage and other inflation more than Price / Mix 4 offset cost reductions/synergies
Slide 10: 2024 Guidance
2 0 2 4 G U I DA N C E
Slide 11: FY 2024 Guidance
FY 2024 GUIDANCE 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 Q2 2024: Adjust
Slide 12: CEO "Top of Mind" Focus Areas
CEO “TOP OF MIND” FOCUS AREAS
Slide 13: Areas of Focus
AREAS OF FOCUS +7% Drive Profitable Organic Amplify Innovation Build Leadership & Talent Top-Line Growth with Pipeline Margin Expansion 13
Slide 14: Avient
YX AVIENT
Slide 15: Appendix
APPENDIX
Slide 16: Raw Material Basket
RA W MATERIAL BASKET Performance Additives 15% Other Raw Materials 38% Pigments 13% Non-hydrocarbon based materials TiO2 9% Styrenic Block Copolymer Dyestuffs 4% 2% Polypropylene Polyethylene 4% Nylon 10% 5% ~40% hydrocarbon based (Grey shaded materials are hydrocarbon based, includes portion of “Ot
Slide 17: Segment Data
SEGMENT DATA SC AVIENT
Slide 18: 2023 Segment, End Market and Geography
2023 SEGMENT, END MARKET AND GEOGRAPHY SEGMENT FINANCIALS END MARKET REVENUE GEOGRAPHY REVENUE Energy Defense Latin America 5% 7% $502M 5% $3,143M Telecommunications 4% Asia Consumer U.S. & Canada Building and 18% 19% 41% Construction $1,138M $224M 9% Transportation 10% $2,007M $358M Packaging Indus
Slide 19: Color, Additives & Inks
COLOR, ADDITIVES & INKS 2023 REVENUE | $2.0 BILLION END MARKET REGION Telecommunications 1% Energy Latin America Building & 2% 8% Construction 10% US & Canada 34% Transportation Packaging 9% 34% Asia 21% Industrial 15% Healthcare 8% Consumer 21% EMEA 37% 19
Slide 20: Specialty Engineered Materials
SPECIALTY ENGINEERED MATERIALS 2023 REVENUE | $1.1 BILLION END MARKET REGION Energy 10% Asia Defense 13% 18% US & Canada Telecommunications 52% 9% Packaging 5% Building & Construction 8% Consumer 16% EMEA Transportation 35% 12% Healthcare Industrial 6% 16% 20
Slide 21: 2023 Avient Regional Sales by End Market
2 0 2 3 AV I E N T R E G I O N A L S A L E S BY END MARKET Defense Energy Energy 8% Defense 5% 8% Telecommunications 6% Packaging Telecommunications 4% 13% 4% Building & Construction 9% Packaging Building & Construction 25% 12% US & Canada Consumer EMEA 22% Transportation (36% of sales) (41% of sale
Slide 22: Reconciliation of Non-GAAP Financial Measures
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
Slide 23: Three Months Ended March 31
Three Months Ended March 31, 2024 2023 Sales: Color, Additives and Inks $ 515.3 $ 537.0 Specialty Engineered Materials 314.4 309.7 Corporate (0.7) (1.0) Sales $ 829.0 $ 845.7 Operating income: Color, Additives and Inks $ 74.8 $ 65.6 Specialty Engineered Materials 53.4 43.1 Corporate (34.2) (51.6) Op
Slide 24: Year Ended December 31, 2023
Year Ended December 31, 2023 Sales: Color, Additives and Inks $ 2,007.4 Specialty Engineered Materials 1,138.2 Corporate (2.8) Sales $ 3,142.8 Operating income: Color, Additives and Inks $ 259.9 Specialty Engineered Materials 142.5 Corporate (205.6) Operating income $ 196.8 Depreciation & amortizati