Avient Corporation · NYSE:AVNT
Avient — Investor Presentation (February 2024)
29 slides from Avient's investor presentation, February 2024
Slide 1: Avient Corporation Investor Presentation
AVIENT CORPORATION I N V E S TO R P R E S E N TAT I O N (NYSE: AVNT) FEBRUARY 2024
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: Avient Overview
AVIENT OVERVIEW OUR VISION: Creating specialized and sustainable materials solutions that transform customer challenges into opportunities, bringing new products to life for a better world Company Overview 2023 Financial Results Revenue By: Latin America Geography 102 5% U.S. & 9,300 Manufacturing 2
Slide 4: Creating a World-Class Sustainable Organization
CRE AT ING A WORL D-CL AS S S US TAINABL E ORGANIZ AT ION Strategic Objectives Growth Drivers Sustainable Solutions Composites Healthcare Asia/Emerging Regions $1,135 $645 1. 6% annualized long term sales $231 $230 $726 $725 growth leveraging sustainable $790 solutions, composites, healthcare $455 $
Slide 5: Top-Tier Sustainability Performance and Recognition
TOP -T IE R S US TAINABIL IT Y P E RF ORMANCE AND RE COGNIT ION Industry Sustainability Standards Avient CDP Score: 94th percentile A- ESG Ratings Performance 87th 1 2 4 5
Slide 6: February 14, 2024 Webcast Presentation
F E B RUA RY 1 4 , 2 0 2 4 WEBCAST P R E S E N T AT I O N
Slide 7: Dr. Ashish Khandpur, President & CEO
DR. AS HIS H KHANDP UR PRESIDENT & CEO 7
Slide 8: Portfolio Transformation
PORTFOLIO TRANSFORMATION Adjusted EBITDA from Specialty Applications 100% 80% % of Adjusted EBITDA 60% 100% 40% 87% 66% 20% 46% 0% 7% 2005 2010 2015 2020 2023 Commodity JVs Distribution Performance Products & Solutions Specialty Businesses 8
Slide 9: Long-Term Revenue Growth Drivers
LONG-TERM REVENUE SUSTAINABILITY GROWTH AS A GROWTH DRIVERS DRIVER Total Company Revenue Long-Term Growth Drivers Growth Rate Sustainable Other Solutions Sustainable Solutions 8–12% Composites 8–10% Healthcare 8–10% 60%+ Key Growth Overlap Asia / LATAM 5% Drivers Other 0–2% Avient 6% Composites, Hea
Slide 10: End Market Observations
END MARKET OBSERVATIONS ( % O F C O M PA N Y S A L E S ) PACKAGING CONSUMER INDUSTRIAL TRANSPORTATION BUILDING & 23% 19% 16% 10% CONSTRUCTION 9% HEALTHCARE DEFENSE ENERGY TELECOMMUNICATIONS 7% 7% 5% 4% 10
Slide 11: Regional Observations
REGIONAL OBSERVATIONS ( % O F C O M PA N Y S A L E S ) US & Canada 41% EMEA Asia 36% Latin America 18% 5% 11
Slide 12: Q4 2023 Results
Q 4 2 0 2 3 R E S U LT S
Slide 13: Q4 2023 Performance vs. Guidance
Q4 2023 PERFORMANCE VS. GUIDANCE ( T O TA L C O M PA N Y ) Sales Adjusted EBITDA Adjusted EPS $719 $114 $0.52 $710 $112 $0.47 Guidance Actual Guidance Actual Guidance Actual (in millions) (in millions) 13
Slide 14: Q4 2023 Adj. EBITDA Margin Performance
Q4 2023 ADJ. EBITDA MARGIN PERFORMANCE Results vs. Guidance Results vs. Prior Year 15.9% 15.9% 15.8% 13.5% Guidance Actual 2022 2023 14
Slide 15: Q4 2023 Performance vs. PY
Q4 2023 PERFORMANCE VS. PY ( T O TA L C O M PA N Y ) Sales Adjusted EBITDA Adjusted EPS - 9% + 7% + 24% $790 $114 $0.52 $107 $719 $0.42 2022 2023 2022 2023 2022 2023 (in millions) (in millions) 15
Slide 16: Q4 2023 Segment Performance
Q4 2023 SEGMENT PERFORMANCE CAI SEM (in millions) (in millions) - 7% +20% - 14% - 11% $491 $84 $55 $301 $459 $260 $49 $70 Sales EBITDA Sales EBITDA 2022 2023 16
Slide 17: Q4 EBITDA Bridge
Q4 EBITDA BRIDGE ( T O TA L C O M PA N Y ) Adjusted $ millions EBITDA Q4 2022 $ 107 Demand (34) • Demand was down, but less than in previous CAI: quarters, due to slowing pace of destocking Price / Mix 11 • Positive net price benefit: Deflation 14 o CAI – Pricing flat with favorable mix from SEM: up
Slide 18: 2024 Guidance
2 0 2 4 G U I DA N C E
Slide 19: 2024 Guidance
2024 GUIDANCE Full Year 2024 Guidance Adjusted EBITDA $505 to $535 million Adjusted EPS $2.40 to $2.65 Interest Expense $105 to $110 million Adjusted Effective Tax Rate 23% to 25% Capital Expenditures ~$140 million Q1 Adjusted EPS of $0.68 19
Slide 20: Appendix
APPENDIX
Slide 21: 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 22: Segment Data
SEGMENT DATA SC AVIENT
Slide 23: 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 24: 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% 24
Slide 25: 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% 25
Slide 26: 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 27: 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 28: Reconciliation to EBITDA and Pro Forma Adjusted EBITDA
Three Months Ended Year Ended December 31, December 31, Reconciliation to EBITDA and Pro Forma Adjusted EBITDA 2023 2022 2023 2022 Sales - GAAP $ 719.0 $ 790.4 $ 3,142.8 $ 3,396.9 Pro forma APM adjustments — — — 256.1 Pro forma adjusted sales $ 719.0 $ 790.4 $ 3,142.8 $ 3,653.0 Net income (loss) fro
Slide 29: Segment Sales, Operating Income and EBITDA
Three Months Ended Year Ended December 31, December 31, 2023 2022 2023 2022 Sales: Color, Additives and Inks $ 459.4 $ 490.8 $ 2,007.4 $ 2,355.0 Specialty Engineered Materials 259.8 300.8 1,138.2 1,044.4 Corporate (0.2) (1.2) (2.8) (2.5) Sales $ 719.0 $ 790.4 $ 3,142.8 $ 3,396.9 Operating income: Co