Avient Corporation · NYSE:AVNT
Avient — Investor Presentation (August 2024)
26 slides from Avient's investor presentation, August 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) AUGUST 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 Company Overview 2023 Financial Results Revenue By: Latin America 102 $3.14B $2.36 Geography 5% U.S. & 9,300 Manufacturing 20,000+ Revenue Adjusted EPS Asia 18% Canada Employees Customers Sites 41% $502M Adjusted EBITDA 36% Innovating materials and 16.0% EMEA processing solutions t
Slide 4: Sustainability Performance and Recognition
SUSTAINABILITY PERFORMANCE AND RECOGNITION Industry Sustainability Standards Avient CDP Score: 94th percentile A- ESG Ratings Performance 87th 1 2 4 4
Slide 5: August 6 Webcast Presentation
AUGUST 6, 20 24 WEBCAST P R E S E N TA T I O N
Slide 6: Q2 2024 Highlights
Q2 2024 HIGHLIGHTS Adj. EBITDA • 5% organic sales growth supported by $143 million Net Sales broad-based growth across all regions $850 million in both CAI and SEM segments +9% • Growth stemmed from gaining share, +3% winning new product specifications (+5% ex FX) and restocking in certain end marke
Slide 7: Q2 2024 Results
Q 2 2 0 2 4 R E S U LT S
Slide 8: Q2 2024 Performance vs. Q2 2023
Q2 2024 PERFORMANCE VS. Q2 2023 ( T O TA L C O M PA N Y ) Sales Adjusted EBITDA Adjusted EPS + 3% + 9% + 21% (+5% excluding FX) (+12% excluding FX) (+25% excluding FX) $850 $143 $0.76 $824 $131 $0.63 Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 (in millions) (in millions) 8
Slide 9: Q2 Results – Organic Sales by Region vs PY
Q2 2 024 RESULTS – ORGA NI C SA LES BY REGION VS PY US & Canada +5% EMEA Asia +4% Latin America +1% +19% Avient ex. FX +4.6% FX -1.5% Total Avient +3.1% 9 Note: Regional Sales Percentages exclude impact of foreign exchange
Slide 10: Q2 2024 Segment Performance (Color, Additives & Inks)
Q2 2024 SEGMENT PERFORMANCE (COLOR, ADDITIVES & INKS) Sales Sales Adjusted EBITDA + 3% + 15% (+5% excluding FX) (+17% excluding FX) $542 $108 $525 $94 • Organic sales growth in all regions led by Americas +200 bps 19.9%* • Raw material deflation combined with cost reduction actions drove 17.9%* EBIT
Slide 11: Q2 2024 Segment Performance (Specialty Engineered Materials)
Q2 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 Sales Adjusted EBITDA + 2% + 7% (+4% excluding FX) (+8% excluding FX) $308 $64 $301 • Sales growth in consumer, $60 healthcare and building & construction end markets offset by weaker demand in +80 bps teleco
Slide 12: 2024 Guidance
®, > 2024 GUIDANCE y
Slide 13: FY 2024 Guidance
FY 20 24 GUIDA NC E Previous (May 7) Current Adjusted EBITDA $510 to $535 million $515 to $540 million Adjusted EPS $2.50 to $2.65 $2.55 to $2.70 Interest Expense $105 million $105 million Adjusted Effective Tax Rate 23% to 25% 23% to 25% Capital Expenditures ~$140 million ~$140 million Q3 2024: Adj
Slide 14: 2023 Sustainability Report
20 23 SUSTAI NA BILI TY REPORT Highlights • Provides performance updates on 2030 Sustainability Goals • Reduced company’s Scope 1 & 2 GHG emissions by 48% since 2019 • Highlights ESG performance ratings, certifications, and awards, including recent upgrades by Ecovadis to Gold and CDP to A- • Reflec
Slide 15: 2024 Avient Investor Day
20 24 AVI ENT INVESTOR DAY • Investor Day to be held December 4, 2024 in New York, NY • The focus will be to do a deep dive on the Company’s strategy • Further details to be communicated 15
Slide 16: Avient
<AVIENT
Slide 17: Appendix
APPENDIX
Slide 18: Raw Material Basket
RA W MATERI AL BA SKET 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 “
Slide 19: Segment Data
SEGMENT DATA SX<AVIENT
Slide 20: 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% 5% $3,143M $502M 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 21: Color, Additives & Inks
COLOR , AD DI TI VES & 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% 21
Slide 22: Specialty Engineered Materials
SPEC IA LTY ENGI NEER ED MATERI ALS 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% 22
Slide 23: 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 24: 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 25: Three Months Ended June 30
Three Months Ended June 30, 2024 2023 Sales: Color, Additives and Inks $ 542.0 $ 524.5 Specialty Engineered Materials 308.1 300.8 Corporate (0.4) (0.9) Sales $ 849.7 $ 824.4 Operating income: Color, Additives and Inks $ 86.1 $ 68.0 Specialty Engineered Materials 42.8 39.7 Corporate (56.4) (45.4) Ope
Slide 26: Year Ended December 31, 2023 Reconciliation
Year Ended December 31, 2023 Reconciliation to Condensed Consolidated Statements of Income $ EPS Net income from continuing operations attributable to Avient shareholders $ 75.8 $ 0.83 Special items, after-tax 79.3 0.86 Amortization expense, after-tax 61.5 0.67 Adjusted net income / EPS $ 216.6 $ 2.