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) DECEMBER 2022
Slide 2: Avient: Who We Are
AVI ENT: WHO WE A RE Headquartered in Avon Lake, OH Key Financial Data (Cleveland) 2022PF Sales $3.6 billion 9,300+ employees 100+ manufacturing plants 2022PF EBITDA $585 million 2022PF EPS $2.95 Guidance as of November 2, 2022 Webcast 36 40 23 25,000+ 9 CUSTOMERS 100% of sales • U.S. and Canada • L
Slide 3: Who We Are – Vision, Strategy, Culture
W H O W E A R E – V I S I O N , S T R AT E G Y, C U LT U R E Avient Corporation (NYSE: AVNT) provides OUR VISION specialized and sustainable material solutions that At Avient, we create specialized and sustainable material solutions that transform transform customer challenges into opportunities, cu
Slide 4: What We Do: Materials Science
W H AT W E D O : M AT E R I A L S C I E N C E Innovation is the lifeblood of a specialty company. We create specialized and sustainable material solutions that transform customer challenges into opportunities, bringing new products to life for a better world. We partner with Brand Owners / OEMs, pro
Slide 5: Sustainability for a Better Tomorrow
SUSTA INAB ILITY F OR A BETTER TOMOR ROW Revenue From Sustainable Solutions* 2016-2021 ($ in millions) $310 205 140 80 75 45 40 20 2021 Sales $915M *Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental Marketing Claims (“Green Guides”) **2020 is Pro Forma
Slide 6: 2021 Sustainability Report
20 21 SUSTAI NA BILI TY REPORT Released July 2022 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
Slide 7: ESG Performance & Awards
ESG PER FORMANCE & A WAR DS E S G R ATI N G S P E R F O R M AN C E 84th 2 1 3 E S G AWAR D S AN D C E R T I F I C AT I O N S 7
Slide 8: Transformational Overview
TRANSFORMATIONAL OVERVIEW y
Slide 9: Recent Transactions
RECENT TRANSAC TIONS Acquired Divested Avient Protective Materials Distribution ® Dyneema $1.45 B $0.95 B 9
Slide 10: Updated Capital Structure & Liquidity
UPDATED CA PI TAL STRUC TURE & LI QUI DI TY Capital Structure Liquidity • Proceeds from completed $3.15B $794M sale of Distribution used to pay near-term maturing debt 2023 Notes $600 Undrawn to strengthen balance sheet Revolver $2.40B $250 (1) • Fixed/floating debt ratio of 2025 Notes $650 ~55/45 $
Slide 11: Previous Transactions
PREVI OUS TR ANSACTIONS Divested (2019) Acquired (2020) Performance Products & Solutions COLOR $0.8 B $1.4 B 11
Slide 12: Clariant Color: Transformational Acquisition
CLARIANT COLOR: TRANSFORMATIONAL ACQUISITION Clariant Color EBITDA Growth ($ in millions) $201 • Acquisition of Clariant Color business significantly expanded $133 presence in healthcare, packaging and consumer end markets (1) 2019PF 2022E EBITDA Margins • Strength of portfolio – double-digit annual
Slide 13: Historic Specialization Through M&A
HISTORI C SPECI AL IZATION THROUGH M& A 20 Acquisitions $4.8B TPE Investment $2.7B of Annual Revenue DSM Protective Materials 5 Divestments Distribution SUNBELT PVC Resins DSS PP&S $2.3B Proceeds 13
Slide 14: Bolt-On Acquisition History
BOLT-ON AC QUI SITI ON HISTORY INVEST TO GROW Established Acquisitions (> 7 years) Commercial Operating Income Operating Margins Resources ($ in millions) 363 $139 22% + 40% + 248% + 1300 bps 259 $40 9% At Acquisition 2022E At Acquisition 2022E At Acquisition 2022E 14
Slide 15: Specialty Transformation to Today
S P E C I A LT Y T R A N SF O R M ATI O N T O D AY 100% (1) % of Adjusted EBITDA 80% 60% 100% 40% 86% 67% 20% 46% 0% 7% (2) 2005 2010 2019 2021 2022 PF • Commodity JVs • Performance Products & Solutions • Distribution • Specialty Businesses (1) Adjusted EBITDA is EBITDA excluding corporate costs and
Slide 16: End Market Focus on Less Cyclical Industries
END MAR KET F OCUS ON LESS CYCL IC AL I ND USTRI ES 2006 2022 Pro Forma Healthcare Defense Telecom. 6% 4% Telecom. Energy 2% Packaging Energy 4% 4% 8% Healthcare 4% 8% Transportation Transportation 14% 9% Consumer 10% Packaging Industrial 23% 15% Industrial 15% Building & Building & Construction Con
Slide 17: Specialty EBITDA Margin Expansion
SPEC IA LTY EBI TDA MA RGI N EX PANSION 17.0% 16.2% • Portfolio transformation 15.3% CAI accelerates growth in less 2.7% cyclical, higher margin end (1) (1) markets 2006 2018PF 2020PF 2022E 21.0% • Investments in our composites platform continue to drive margin 17.6% expansion SEM 14.8% 1.8% 2006 20
Slide 18: Portfolio Evolution Over the Years
PORTFOLIO EVOLUTION OVER THE YEARS Adj. EBITDA Adj. EBITDA Margins ($ in millions) • Focus on organic growth combined with transformative $585 16.1% and bolt-on acquisitions • Divested commodity businesses $408 11.5% tied to more cyclical end markets • Expanded presence in high growth areas of susta
Slide 19: Returning Cash to Shareholders
RETURNING CASH TO SHAREHOLDERS Earnings Growth Dividends Share Repurchases $2.95 ~$550MM ~$1Bn 2022 PRO FORMA PAID OVER LAST 11 YEARS REPURCHASED ADJUSTED EPS OVER LAST 11 YEARS 0.99 0.95 0.85 1.0 0.79 0.81 1.0 1.0 $2.95 0.9 0.72 0.9 $2.67 0.8 0.58 0.7 $2.08 0.50 0.6 $ per share 0.42 0.5 0.34 $Bn $1
Slide 20: Third Quarter 2022 Results
THIRD QUARTER 2022 © RESULTS y
Slide 21: Q3 2022 Performance
Q3 2022 PERFORMANCE ( T O TA L C O M PA N Y C O N T. O P S ) Sales Adjusted EBITDA Adjusted EPS + 1% + 8% - 3% (+ 9% excluding FX) (+ 18% excluding FX) (+ 5% excluding FX) $119 $823 $0.61 $818 $110 $0.59 2021 2022 2021 2022 2021 2022 (in millions) (in millions) 21
Slide 22: Q3 EBITDA Bridge
Q3 EBITDA BRIDGE ( P R O F O R M A T O TA L C O M PA N Y ) Adjusted $ millions EBITDA Q3 2021 $ 142 Demand (39) CAI: Price / Mix 68 Price increases more than Inflation (44) offset raw material and SEM: supply chain impacts Price / Mix 41 Inflation (26) Net Price Benefit 39 Wage and Energy Inflat
Slide 23: Q3 2022 Segment Performance
Q3 2022 SEGMENT PERFORMANCE CAI SEM Pro Forma ($ in millions) - 4% Flat - 2% - 11% (+ 4% excluding FX) (+ 7% excluding FX) (+ 5% excluding FX) (- 7% excluding FX) $587 $326 $319 $93 $93 $566 $70 $62 Sales EBITDA Sales EBITDA 23
Slide 24: Full Year 2022 Guidance
FULL YEAR 2022 GUIDANCE Sales Adjusted EBITDA Adjusted EPS $3,635 $585 $2.95 $3,375 $2.60 $500 Cont. Ops Pro Forma Cont. Ops Pro Forma Cont. Ops Pro Forma (in millions) (in millions) 24
Slide 25: Summary
SUMMARY • Executed the plans we laid out earlier this year • Completed the Dyneema acquisition and Distribution divestiture amid challenging market conditions • Paid down debt and expect to finish the year modestly levered at 3.1x net debt to 2022 pro forma adjusted EBITDA • Expect $200 million of f
Slide 26: Appendix
APPENDIX S«AVIENT
Slide 27: Raw Material and Supply Chain Update
RAW MATERIAL AND SUPPLY CHAIN UPDATE Annual Purchases • From Q2 to Q3, we have seen a 7-10% Performance Additives 15% sequential decline in certain Other Raw Materials hydrocarbon-based raw materials 30% Pigments 13% Non-hydrocarbon based materials Polypropylene • Other raw materials such as 5% TiO2
Slide 28: Segment Data
SEGMENT DATA S«AVIENT
Slide 29: 2022 Pro Forma Segment, End Market and Geography
2022 PRO FORMA SEGMENT, END MARKET AND GEOGRAPHY SEGMENT FINANCIALS END MARKET REVENUE GEOGRAPHY REVENUE Energy Defense 6% Latin America 4% 5% $3,635M $585M Telecommunications 4% Building and Asia Consumer Construction 20% 21% U.S. & Canada 10% 40% Transportation 9% Industrial Packaging 15% 23% EMEA
Slide 30: Color, Additives & Inks
COLOR, ADDITIVES & INKS 2022 REVENUE | $2.3 BILLION END MARKET REGION Telecommunications 1% Energy Latin America 1% 5% Building & Construction 11% US & Canada 35% Packaging Asia Transportation 33% 20% 8% Industrial 15% Healthcare 9% Consumer 22% EMEA 40% 30 Figures represent 2022 full year estimates
Slide 31: 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 2022 PRO FORMA REVENUE | $1.3 BILLION END MARKET REGION Energy Defense Asia 9% 15% 15% US & Canada 50% Telecommunications 10% Packaging 5% Building & Construction 8% Consumer 19% Transportation 10% EMEA 35% Healthcare Industrial 8% 16% 31 Figures
Slide 32: 2022 Pro Forma Avient Regional Sales by End Market
2 0 2 2 P R O F O R M A AV I E N T R E G I O N A L S A L E S BY END MARKET Energy Defense Energy Defense 5% 7% 5% 7% Telecommunications Telecommunications Packaging 3% 6% 14% Building & Construction Building & 11% Packaging Construction 29% 12% US & Canada Transportation EMEA 10% (35% of sales) (40%