Slide 1: Avient Corporation Investor Meetings
AVIENT CORPORATION INVESTOR MEETINGS (NYSE: AVNT) MARCH 2022
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Statements In this presentation, statements that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectat
Slide 3: Who We Are – Vision, Strategy, Culture
W H O W E A R E – V I S I O N , S T R AT E G Y, C U LT U R E Avient Corporation (NYSE: AVNT) provides OUR VISION specialized and sustainable material solutions that At Avient, we create specialized and sustainable material solutions that transform transform customer challenges into opportunities, cu
Slide 4: What We Do: Materials Science
W H AT W E D O : M AT E R I A L S C I E N C E Innovation is the lifeblood of a specialty company. We create specialized and sustainable material solutions that transform customer challenges into opportunities, bringing new products to life for a better world. We partner with Brand Owners / OEMs, pro
Slide 5: Why Avient Wins
W H Y AV I E N T W I N S At Avient, we’ve built a culture of winning and how we do so is unique, lasting and Speed to market is essential today, and Avient plays a crucial role in our customers’ difficult to replicate. It’s why customers choose us. And we have over 25,000 who do. success. Our except
Slide 6: Better Together: PolyOne and Clariant Color
B ET T E R TO G E TH E R : P O LYO NE A N D C L A R I A N T C O LO R In July 2020, we completed the acquisition of the Clariant Color business, the largest We are better together through: acquisition in the 20-year history of our company. Keeping Safety First — PolyOne and Clariant are both ACC Resp
Slide 7: 2021 Performance
mh, » 2021 PERFORMANCE d
Slide 8: Q4 2021 Performance
Q4 2021 PERFORMANCE ( T O TA L C O M PA N Y ) Sales Adjusted Operating Income Adjusted EPS + 21% + 6% + 12% $0.58 $1,202 $85 $80 $0.52 $997 2020 2021 2020 2021 2020 2021 (in millions) (in millions) 8
Slide 9: Full Year 2021 Performance
FULL YEAR 2021 PERFORMANCE ( T O TA L C O M PA N Y ) Sales Adjusted Operating Income Adjusted EPS + 27% + 39% + 58% $4,819 $429 $3.05 $3,783 $308 $1.93 (1) (1) 2020PF (1) 2021 2020PF 2021 2020PF 2021 (in millions) (in millions) 9 (1) Financial information is pro forma to include a full year of Clari
Slide 10: Full Year 2021 Segment Performance
FULL YEAR 2021 SEGMENT PERFORMANCE CAI SEM Distribution ($ in millions) + 18% + 34% + 30% + 40% + 47% + 33% $2,402 $303 $919 $1,631 $132 $93 $2,043 $709 $226 $70 $94 $1,110 Sales Operating Income Sales Operating Income Sales Operating Income (1) (1) 10 (1) Financial information is pro forma to inclu
Slide 11: Full Year 2021 Sales and Operating Income
FULL YEAR 2021 SALES AND OPERATING INCOME ( T O TA L C O M PA N Y ) Adjusted Sales Growth Rate Operating $ millions Income (1) Full Year 2020 (Pro forma) $3,783 $308 Sustainable Solutions 147 19% 60 Healthcare 143 28% 30 Composites 58 43% 29 Growth in Asia / LATAM 107 21% 26 Other 543 30% 58 Sub-tot
Slide 12: Full Year 2021 EBITDA Bridge
FULL YEAR 2021 EBITDA BRIDGE Adjusted $ millions EBITDA (1) Full Year 2020 (Pro forma) $ 457 Demand 135 • Demand impact driven by growth CAI: in key focus areas: sustainable Price / Mix 158 Inflation (120) solutions, healthcare, composites and growth in Asia / LATAM SEM: Price / Mix 84 Inflation (
Slide 13: Specialty EBITDA Margin Expansion
SPECIALTY EBITDA MARGIN EXPANSION 17.0% • Record margins in 2021 despite 16.2% unprecedented supply chain challenges 15.3% 15.2% (1) CAI • Continued portfolio transformation to high-growth end markets and 2018 2019 2020 2021 sustainable solutions • Clariant Color synergy realization 17.6% 17.8% • In
Slide 14: Clariant Color: Transformational Acquisition
CLARIANT COLOR: TRANSFORMATIONAL ACQUISITION Clariant Color EBITDA Growth ($ in millions) $205 • Acquisition of Clariant Color business significantly expanded $133 presence in healthcare, packaging and consumer end markets (1) 2019PF 2021 EBITDA Margins • Strength of portfolio – double-digit annual
Slide 15: Clariant Color Integration & Cost Synergies Update
C L A R I A N T C O LO R I N T E G R AT I O N & C O S T S Y N ERG I E S U PDATE Initial 2021 Total ($ millions) Synergy Synergy Synergies Estimate Realization Expected Administrative $ 18 $ 29 $ 40 Sourcing 24 20 24 Operational 18 5 21 Total Synergies $ 60 $ 54 $ 85 • Integration going extremely wel
Slide 16: Sustainability for a Better Tomorrow
S U S TA I NA B I L I T Y F O R A B ET T E R TO M O R ROW Revenue From Sustainable Solutions* 2016-2021 • Revenue from sustainable solutions grew 16% in 2021 and expected to grow 8-12% in $915M 2022 as our innovation efforts and collaboration with customers accelerates $790M • Investments centered a
Slide 17: People
PEOPL E C ULTU RE IS EVERYTH ING World-Class Safety Diversity & Inclusion 7x Safer than Industry Average Community Service Leadership Development Over $16 million raised since 2010 17
Slide 18: Q4 2021 Sales and Operating Income
Q4 2021 SALES AND OPERATING INCOME ( T O TA L C O M PA N Y ) Adjusted Sales Growth Rate Operating $ millions Income Q4 2020 $997 $80 Sustainable Solutions 23 12% 8 Healthcare 53 43% 9 Composites 7 22% 2 Growth in Asia / LATAM 14 10% 3 Other 118 23% 2 Sub-total $1,212 22% $104 Wage Inflation and Over
Slide 19: Q4 EBITDA Bridge
Q4 EBITDA BRIDGE Adjusted $ millions EBITDA Transportation $ (5) Q4 2020 $ 118 Outdoor High Performance (3) Demand - Other 8 CAI: Total Demand - Price / Mix 62 Inflation (45) SEM: Price / Mix Inflation 25 (20) Distribution: Price / Mix 114 Price increases more than Inflation (109) offsets raw
Slide 20: Q4 2021 Segment Performance
Q4 2021 SEGMENT PERFORMANCE CAI SEM Distribution ($ in millions) + 11% + 6% + 19% - 3% + 39% + 22% $581 $228 $425 $61 $30 $22 $526 $58 $29 $191 $18 $305 Sales Operating Income Sales Operating Income Sales Operating Income (1) 20
Slide 21: 2022 Outlook
2022 OUTLOOK
Slide 22: Revenue Growth Drivers
REVENUE GROWTH DRIVERS Long-Term 2022E Growth Drivers Growth Rate Growth Rate Sustainable Solutions 8–12% 12% Healthcare 8–10% 10% Composites 10% 3% Excluding Outdoor High Performance 13% Asia / LATAM 5% 6% Other (GDP growth) 2–3% 2–3% Avient 6.5% 6% (7.5% excl. FX) 22
Slide 23: 2022 Growth Projections
2022 GROWTH PROJECTIONS ( T O TA L C O M PA N Y ) Q1 – Adjusted EPS Full Year – Adjusted EPS + 7% + 15% (+ 10% excluding FX) (+ 17% excluding FX) $0.95 $3.50 $0.89 $3.05 2021 2022E 2021 2022E 23
Slide 24: 2022 Sales and OI – Q1 and Full Year
2022 SALES AND OI – Q1 AND FULL YEAR ( T O TA L C O M PA N Y ) Adjusted Sales Operating Income ($ millions) Q1 Full Year Q1 Full Year 2021 - Actual $ 1,162 $ 4,819 $ 123 $ 429 Sustainable Solutions 27 110 12 44 Healthcare 15 66 4 13 Composites (excl.Outdoor High Performance) 11 29 5 13 Outdoor High
Slide 25: Cash Flow / Leverage
C A SH F LOW / L E VE R AGE ($ millions) 2021 2022E Cash Flow from Operating Activities $ 234 $ 385 Less: Run-Rate CapEx (86) (90) CapEx for Clariant Integration (15) (20) CapEx for IT System Upgrade - (25) Total CapEx (101) (135) Free Cash Flow $ 133 $ 250 Adjusted EBITDA $ 581 $ 635 Net Debt / Adj
Slide 26: 2021 Highlights
2021 HIGHLIGHTS • Record results – highest level of sales ($4.8B) and earnings ($3.05 adjusted EPS) in company history • Successful Clariant Color integration – net debt to adjusted EBITDA reduced to 2.2x, one-year ahead of schedule • Recognized as one of America’s Most Responsible Companies by News
Slide 27: 2022 Summary
2022 SUMMARY • 15% adjusted EPS growth to $3.50, led by growth in sustainable solutions and increased synergy realization • Continued strong synergy capture from the Clariant Color integration: $75M anticipated run-rate synergies by the end of 2022 • Adjusted EBITDA of $635M represents 9% growth abo
Slide 28: Avient
YX AVIENT
Slide 29: Peer Comparisons
PEER COMPARISONS 29
Slide 30: Avient Is Asset Light
AV I E N T I S A SS E T L I G H T Capex / Revenue As a specialty formulator, we don’t 2022E (%) require significant capital 7 7 investment, as compared to the 7 base resin raw material suppliers 5 we purchase from. Even more, our 5 5 manufacturing capabilities are 4 flexible and easily adaptable to
Slide 31: High Free Cash Flow Conversion
H I G H F R E E C A S H F L OW CONVERSION Free Cash Flow Conversion (1) 2022E (%) Being asset light helps us to generate strong free cash flow that is in line 86 89 89 85 85 with specialty formulators. 80 79 78 76 76 76 76 76 70 69 63 Our free cash flow supports shareholder value creation through in
Slide 32: Our Valuation Versus Peers
O U R VA LUATI O N V E R S U S P E E R S With the Clariant Color business Total Enterprise Value / 2022E EBITDA acquisition and divestment of the PP&S business, our exposure is now concentrated in less-cyclical Historic Multiple and high-growth markets. 25.0 19.7 Over the last 10 years, our 17.7 mul
Slide 33: Summary: Why Invest in Avient?
S U M M A RY: W H Y I N V E S T I N AV I E N T ? We are a specialty formulator that enables many of the world’s products through innovation and custom solutions. We take great pride in our essential role and responsibility—to our people, our customers, our planet and our shareholders. In 2021, we de
Slide 34: Appendix
APPENDIX SX<AVIENT
Slide 35: Raw Material and Supply Chain Update
RAW MATERIAL AND SUPPLY CHAIN UPDATE Annual Purchases • Significant raw material price inflation Performance and tight inventory continued in Q4 2021 Additives 15% Other Raw Materials o For the full year, the average cost of 30% hydrocarbon based materials was up Pigments 50% in 2021 13% Non-hydroca
Slide 36: Segment Data
SEGMENT DATA SX<AVIENT
Slide 37: 2021 Segment, End Market and Geography
2021 SEGMENT, END MARKET AND GEOGRAPHY SEGMENT FINANCIALS END MARKET REVENUE GEOGRAPHY REVENUE Energy Telecommunications 2% Latin America $4,819M $581M 4% Consumer 9% U.S. & Canada Building and 23% 50% Construction $94M 10% Asia 16% $1,631M $164M Transportation 11% $919M $409M Packaging $2,402M 19%
Slide 38: Color, Additives & Inks
COLOR, ADDITIVES & INKS 2021 REVENUE | $2.4 BILLION END MARKET REGION Energy 1% Telecommunications Latin America 1% 7% Transportation 9% US & Canada 32% Building & Packaging 34% Asia Construction 21% 10% Industrial 16% Healthcare Consumer 8% 21% EMEA 40% 38 All charts reflect 2021 financials
Slide 39: Specialty Engineered Materials
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 2021 REVENUE | $919 MILLION END MARKET REGION Energy 7% Asia US & Canada Building & Consumer 20% 55% Construction 27% 11% Industrial 11% Healthcare 10% Transportation EMEA 11% 25% Packaging 7% Telecommunications 16% 39 All charts reflect 2021 fin
Slide 40: Distribution
DISTRIBUTION 2021 REVENUE | $1.6 BILLION END MARKET REGION Energy Telecommunications Building and 1% 1% Latin Construction America 8% 17% US & Canada Healthcare 80% 26% Transportation Asia 16% 3% Consumer Industrial 23% 20% Packaging 5% KEY SUPPLIERS 40 All charts reflect 2021 financials
Slide 41: Total Company Regional Sales by End Market
T O T A L C O M PA N Y R E G I O N A L S A L E S BY END MARKET Energy Energy Telecommunications 2% Telecommunications 4% 4% 5% Building & Consumer Packaging Construction 25% Building & Construction 32% 10% 12% Transportation 13% US & Canada Transportation EMEA 12% (25% of sales) (50% of sales) Indus