Avient Corporation · NYSE:AVNT
Avient — Jefferies Virtual Industrials Conference 2020
34 slides from Avient's conference presentation, August 2020
Slide 1: Jefferies Virtual Industrials Conference August 2020
JEFFERIES VIRTUAL INDUSTRIALS CONFERENCE AUGUST 2020 Avient Corporation 1
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS • • • • • • • • • • • • • • • • • • • • Avient Corporation 2
Slide 3: Use of Non-GAAP Measures
USE OF NON-GAAP MEASURES • • • Avient Corporation 3
Slide 4: Update on the COVID-19 Pandemic
UPDATE ON THE COVID-19 PANDEMIC • • • • Avient Corporation 4
Slide 5: Second Quarter 2020 in Review
SECOND QUARTER 2020 IN REVIEW • • • Consumer Discretionary $64.3 18% 18% 6% 20% • 16% 2% 9% $46.9 • • 2019 Transportation Consumer Healthcare Packaging All Other Cost FX 2020 Discretionary Industries Containment Avient Corporation 5
Slide 6: Clariant Masterbatch Strategic Rationale
CLARIANT MASTERBATCH STRATEGIC RATIONALE Avient Corporation 6
Slide 7: Fit with Four Pillar Strategy
FIT W I T H FOUR PILLAR S T R A T E G Y Specialization Globalization • • • • • People Commercial Operational Excellence Excellence • • • • • Avient Corporation 7
Slide 8: End Market Transformation
END MARKET T R A N S F O R M A T I O N Percentage of Total Revenue Building & Construction High Growth End Markets 50% 38% 20% 22% Packaging 18% 8% Consumer 5% 10% 12% 4% Healthcare 2006 2019E PF* 2006 2019E PF* * 2019E Pro Forma for PP&S Divestiture and Clariant Masterbatch business Avient Corporat
Slide 9: End Market Transformation: Net Sales by End Market
END MARKET T R A N S F O R M A T I O N Net Sales by End Market 2006 Pro Forma(1) Electrical & Healthcare 4% Textiles Healthcare Electronic Appliance 7% 12% 7% 2% Packaging Industrial 8% Electrial & 10% Electronic 4% Consumer 10% Industrial 11% Packaging Wire & Cable 20% 11% Transportation Wire & Cab
Slide 10: Unified Focus on Sustainability
UNIFIED FOCUS ON SUSTAINABILITY • • • • • • 2006 - 2013 2013 – 2019 PEOPLE PERFORMANCE PRODUCTS PLANET Avient Corporation 10
Slide 11: Over 85% of Adjusted EBITDA from Specialty
OVER 85% OF ADJUSTED EBITDA FROM SPECIALTY 100% % of Adjusted EBITDA(1) 80% 60% 87% 40% 66% 20% 46% 7% 0% 2005 2010 2015 Pro Forma (2) JVs Performance Products & Solutions Distribution Specialty Avient Corporation 11
Slide 12: The New Avient: A Specialty Growth Company
THE NEW AVIENT: A SPECIALTY GROWTH COMPANY Transaction expected to add $0.85 to pro forma adjusted EPS Avient Corporation 12
Slide 13: Sustainability at Avient
SUSTAINABILITY AT AVIENT PEOPLE, PRODUCTS, PLANET, PERFORMANCE Avient Corporation 13
Slide 14: Vision and Core Values
VISION CORE To be the world’s VALUES To be the premier world’sof provider Collaboration Innovation Excellence premier provider specialized of polymer specialized polymer materials, services materials, services and and sustainable solutions solutions Commercial Excellence Operational Excellence Globa
Slide 15: Safety First
SAFETY FIRST Injuries per 100 Workers 1.3 Spartech Acquisition 1.1 1.1 0.97 0.85 0.84 0.74 0.74 0.69 0.65 0.57 0.56 0.54 0.51 0.14 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD Avient Corporation 15
Slide 16: Great Place to Work
GREAT PLACE TO WORK Avient Corporation 16
Slide 17: Commodity to Specialty Transformation
COMMODITY TO SPECIALTY TRANSFORMATION • • • • • • • • • • • • • 2020 and • Beyond 2000-2005 2006 2006 --2013 2013 2013 – 2019 Avient Corporation 17
Slide 18: Avient: 2019 Revenue $2.9 Billion
AVIENT 2019 REVENUE | $2.9 BILLION Segment End Market Geography Healthcare Industrial Distribution Specialty 15% 14% Engineered United States 41% Europe Materials 54% 19% 25% Appliance 3% Consumer Textiles 14% 5% Asia 11% Electrical & Electronics 6% Building & Construction Packaging Latin 6% 13% Ame
Slide 19: Proof of Performance
PROOF OF PERFORMANCE ADJUSTED EPS E X P A N S I O N $2.43 10 C O N S E C U T I V E $2.21 $2.06 Operating Income 2006 2019 Y E A R S $1.96 % of Sales $1.80 $1.69 Color, Additives & $1.51 Inks 1.7% 14.7% $1.31 Specialty Engineered Materials 1.1% 11.6% $1.00 Distribution 2.6% 6.3% $0.82 $0.68 $0.13 200
Slide 20: Expansion of Commercial Resources Driving Growth
EXPANSION OF COMMERCIAL RESOURCES D R I V I N G G R O W T H $4.0 871 $3.5 $3.2 Total + 9% 663 Total + 31% $2.9 $2.9 + 10% 207 504 + 32% 1,032 164 + 26% 130 + 26% 710 Organic 531 Organic + 5% + 45% + 7% + 34% 2014 2018 Pro Forma (2) 2015(1) 2016 (1) 2017 2018 Pro (2) Pro Forma Forma R&D / Technical M
Slide 21: Prior Acquisitions History
PRIOR ACQUISITIONS HISTORY Established Acquisitions (> 7 years) Commercial Operating Operating Resources(1) Income Margins ($ in millions) 350 19% $100 + 37% + 176% + 1000 bps 256 $36 9% At Acquisition 2019 At Acquisition 2019 At Acquisition 2019 Avient Corporation 21
Slide 22: Aligning with Trends for Growth
ALIGNING WITH TRENDS FOR GROWTH TRANSPORTATION PACKAGING HEALTHCARE CONSUMER Facilitate Reduce Reduce Light- alternative Improve packaging spread of weighting energy recyclability materials infection solutions Avient Corporation 22
Slide 23: Innovation
INNOVATION Innovation comes from Research & Development Spend $51 Customization 55% $20 2006 2019 Vitality Index M&A 37% 30% Innovation Pipeline 12% 15% 2006 2019 Avient Corporation 23
Slide 24: Revenue from Sustainable Solutions
REVENUE FROM SUSTAINABLE SOLUTIONS $410M 14% Total Annual Growth $355M $325M 9% Organic Annual Growth $275M Avient Corporation 24
Slide 25: Segment Highlights
SEGMENT HIGHLIGHTS INNOVATING WITH AVIENT Avient Corporation 25
Slide 26: Color, Additives & Inks: End Markets & Solutions
COLOR, ADDITIVES & INKS END MARKETS & SOLUTIONS Packaging Industrial 31% 14% Solid Liquid Textiles 13% Colorants Colorants Electrical & Electronics 1% Appliances 2% Healthcare Wire & Cable 5% 10% Transportation 7% Consumer Building & Construction 8% 9% Performance Screen Additives Printing Inks Avie
Slide 27: Color, Additives & Inks
COLOR, ADDITIVES & INKS 2019 REVENUE | OVER $1 BILLION 14.7% Revenue by Region Operating Income & Margin 12.2% $147 Canada 1% Europe 34% United 5.5% States Asia $104 44% 15% Mexico 0.9% 3% South America 3% $25 $4 2005 2009 2013 2019 Avient Corporation 27
Slide 28: Specialty Engineered Materials: End Markets & Solutions
SPECIALTY ENGINEERED MATERIALS END MARKETS & SOLUTIONS Wire & Cable* Consumer 28% 19% Appliance Transportation 2% 14% Building & Engineered Advanced Thermoplastic Construction 2% Formulations Composites Elastomers Packaging 6% Industrial Electrical & Electronics 8% 12% Healthcare 9% Avient Corporati
Slide 29: Specialty Engineered Materials
SPECIALTY ENGINEERED MATERIALS 2019 REVENUE | $750 MILLION 11.6% Revenue by Region Operating Income & Margin 9.3% Canada $87 2% Europe 27% Asia United 17% 5.1% States $57 54% 0.1% $21 2005 2009 2013 2019 Avient Corporation 29
Slide 30: Distribution
DISTRIBUTION END MARKETS & SUPPLIERS 6.3% 2019 Revenue | $1.2 Billion Operating Income & Margin 5.9% Industrial Healthcare 19% $75 28% 4.0% $63 2.9% Wire & Cable 1% Transportation Packaging 18% 2% Building & Construction $25 4% $20 Electrical & Electronics 5% Appliance Consumer 6% 17% 2005 2009 2013
Slide 31: Overview of Raw Material Purchases
OVERVIEW OF RAW MATERIAL PURCHASES Avient Corporation 31
Slide 32: Avient Corporation
Avient Corporation 32
Slide 33: Reconciliation of Non-GAAP Financial Measures (Unaudited)
Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to PolyOne shareholders and diluted adjusted earnings per share (EPS) from continuing operations at
Slide 34: Reconciliation of Non-GAAP Financial Measures (Unaudited)
Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except 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 att
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