Slide 1: Avient Corporation Second Quarter 2022 Results
AVIENT CORPORATION SE C O N D Q UA RT ER 2 0 22 R ES U LTS (NYSE: AVNT) J U LY 2 6 , 2 0 2 2
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: Second Quarter 2022 Results
® ™~ SECOND QUARTER 2022 | RESULTS d
Slide 4: Q2 2022 Performance
Q2 2022 PERFORMANCE ( T O TA L C O M PA N Y ) Sales Adjusted Operating Income Adjusted EPS + 5% + 10% + 13% (+ 10% excluding FX) (+ 16% excluding FX) (+ 20% excluding FX) $1,302 $134 $0.98 $1,235 $122 $0.87 2021 2022 2021 2022 2021 2022 (in millions) (in millions) 4
Slide 5: Q2 2022 Segment Performance
Q2 2022 SEGMENT PERFORMANCE CAI SEM Distribution ($ in millions) + 4% + 9% + 1% Flat + 10% + 13% (+ 10% excluding FX) (+ 16% excluding FX) (+ 6% excluding FX) (+ 3% excluding FX) $649 $241 $244 $443 $27 $94 $37 $37 $404 $624 $86 $24 Sales Operating Income Sales Operating Income Sales Operating Incom
Slide 6: Q2 2022 Sales and Operating Income
Q2 2022 SALES AND OPERATING INCOME ( T O TA L C O M PA N Y ) Adjusted Sales Growth Rate Operating $ millions Income Q2 2021 $1,235 $122 Sustainable Solutions 17 7% 7 Healthcare 23 14% 5 Composites (ex Outdoor High Performance) 10 20% 4 Growth in Asia / LATAM 5 3% 1 Other 69 11% 5 Sub-total $1,359 10
Slide 7: Q2 EBITDA Bridge
Q2 EBITDA BRIDGE Adjusted $ millions EBITDA Q2 2021 $ 159 China Lockdowns / Russia Impact $ (14) Demand (29) Outdoor High Performance (5) CAI: Transportation (5) Price / Mix 87 Inflation (58) SEM: Price increases more than Price / Mix 36 Inflation (24) offsets raw material and Distribution: supp
Slide 8: Q2 EPS Bridge
Q2 EPS BRIDGE Q2 '21 Adjusted EPS $ 0.87 Color, Additives and Inks 0.11 Specialty Engineered Materials 0.01 Distribution 0.03 Corporate Costs 0.01 F/X (0.05) Segment OI $ 0.11 Interest Expense 0.03 Tax Rate (0.03) Q2 '22 Adjusted EPS $ 0.98 8
Slide 9: 2021 Sustainability Report
20 21 SUSTAI NA BILI TY REPORT Key Updates • Provided progress on 2030 Sustainability Goals • Emphasized commitment to U.N. Global Compact & fulfilled Communication of Progress (COP) requirements • New Sustainability Strategy overview page including our 2022 AIP ESG metrics • New ESG Performance pag
Slide 10: ESG Performance & Awards
ESG PER FORMANCE & A WAR DS (as of 6/30/22) 84th ENVIRONMENTAL 2 SOCIAL 1 GOVERNANCE 3 10
Slide 11: 2022 Outlook
2022 OUTLOOK
Slide 12: FY 2022 Guidance
FY 2022 GUIDANCE ( T O TA L C O M PA N Y: C U R R E N T P O R T F O L I O ) Sales Adjusted Operating Income Adjusted EPS + 6% + 14% + 15% (+ 9% excluding FX) (+ 18% excluding FX) (+ 20% excluding FX) $490 $3.50 $5,100 $3.05 $4,819 $429 2021 2022E 2021 2022E 2021 2022E (in millions) (in millions) 12
Slide 13: Cash Flow / Leverage
CA SH FLOW / LEV ER AGE ($ millions) 2022E Cash Flow from Operating Activities $ 400 Less: Run-Rate CapEx (90) CapEx for Clariant Integration (10) CapEx for IT System Upgrade (15) Total CapEx (115) Free Cash Flow $ 285 Adjusted EBITDA $ 635 Net Debt / Adjusted EBITDA 1.6x 13
Slide 14: Dyneema / Distribution Updates
DYNEEMA / DI STRIBUTION UPDATES DISTRIBUTION • Strong performance so far in 2022 in-line • Encouraging interest thus far from with our modeling potential buyers for world-class business with a strong track record • Acquisition to be finalized as early as • Second round bids due in August September 1
Slide 15: Pro Forma Modeling Update
PRO F OR MA MODELI NG UPDATE 2022E Forecast + Sale of Pro Forma Forecast Dyneema ($M) Dyneema Distribution 2022 Revenue $ 5,100 $ 415 $ 5,515 $ (1,635) $ 3,880 Adjusted EBITDA 635 130 765 (109) 656 EBITDA % 12% 31% 14% 7% 17% Adj. EPS $ 3.50 Adj. EPS (ex Amort & Financing) $ 3.96 $ 0.82 $ 4.78 $ (0.
Slide 16: Two-Year Leverage Model
TWO-YEAR LEVER AGE MODEL Clariant Color Acquisition Dyneema® Acquisition 3.5x 2.7x 2.8x 2.4x 2.0x 1.6x (1) (1) (2) 2019PF 2020PF 2022E 2022PF 2023E 2024E (1) Pro forma for the acquisition of the Clariant Color business 16 (2) Pro forma for the acquisition of Dyneema® and potential divestiture of Dis
Slide 17: Our Specialty Journey Continues
OUR SPEC IA LTY JOURNEY C ONTINUES 100% • Dyneema® brings leading technology and brand with the World’s Strongest Fiber™, deep history of application development and strong 80% management team focused on specialty applications % of Adjusted EBITDA(1) 60% • Dyneema® transaction is aligned with our pr
Slide 18: End Market Transformation to Less Cyclical Industries
END MAR KET TR ANSF OR MATION TO LESS CYCLI CAL INDUSTRI ES (WIT H DY NEE MA, E X. DIS TR IBUTION) 2006 2022 Pro forma Healthcare Defense Telecom. 6% 4% Telecom. Energy 2% Packaging Energy 4% 4% 8% Healthcare 4% 8% Transportation Transportation 14% 9% Consumer 10% Packaging Industrial 23% 15% Indust
Slide 19: End-Market Focus for New Innovation
END-MARKET F OCUS F OR NEW I NNOVATION Semiconductors Robotics Healthcare Interconnected disruptive markets with massive innovation needs 19
Slide 20: Avient
YX AVIENT
Slide 21: Appendix
APPENDIX SX<AVIENT
Slide 22: Raw Material and Supply Chain Update
RAW MATERIAL AND SUPPLY CHAIN UPDATE Annual Purchases • Significant raw material price inflation and Performance tight inventory continued in Q2 2022, Additives 15% although at a slightly lesser rate compared Other Raw Materials to the prior quarter 30% Pigments 13% o For Q2 2022, the average cost o
Slide 23: Segment Data
SEGMENT DATA SX<AVIENT
Slide 24: 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 25: 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% 25 All charts reflect 2021 financials
Slide 26: 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% 26 All charts reflect 2021 fin
Slide 27: 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 27 All charts reflect 2021 financials
Slide 28: Total Company Regional Sales by End Market
T O TA 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) Indust
Slide 29: 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 30: Three Months Ended June 30, 2022 Reconciliation
Three Months Ended June 30, 2022 GAAP Special Adjusted Reconciliation to Condensed Consolidated Statements of Income Results Items Results Operating Income $ 129.5 $ 4.3 $ 133.8 Income before income taxes $ 114.7 $ 3.4 $ 118.1 Income tax expense - GAAP (30.0) — (30.0) Income tax impact of special it
Slide 31: Reconciliation of EBITDA by Segment
Year Ended Reconciliation of EBITDA by Segment December 31, 2021 Operating income: Color, Additives and Inks $ 303.1 Specialty Engineered Materials 132.0 Distribution 93.2 Corporate and eliminations (147.1) Operating income $ 381.2 Items below OI in Corporate: Other income, net $ (1.3) Depreciation