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 2023
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 material solutions that transform customer challenges into opportunities, bringing new products to life for a better world Company Overview 2023 Financial Guidance 2022 Pro Forma Revenue By: Latin America Geography U.S. & 5% 9,700 104
Slide 4: Creating a World-Class Sustainable Organization
C R EAT I N G A WO R L D- C L A SS S US TA I NA B L E ORG A N I ZAT I ON Strategic Objectives Growth Drivers Sustainable Solutions Composites Healthcare Asia/Emerging Regions 1. 6.5% annualized long term sales $1,175 $668 $293 $830 growth leveraging sustainable $231 $726 $790 solutions, composites,
Slide 5: Top-Tier Sustainability Performance and Recognition
TO P- T IE R S US TA I NA B I L I TY PE R F OR MA N C E A N D R EC O G NI T I ON Industry Sustainability Standards 90th percentile ESG Ratings Performance 87th 2 2 5 5
Slide 6: What We Do: We Are a Formulator
W H AT W E D O : W E A R E A F O R M UL ATO R 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 7: July 27, 2023 Webcast Presentation
J U LY 2 7 , 2 0 2 3 WEBCAST P R E S E N TA T I O N
Slide 8: Composites Portfolio
COMPOSI TES PORTF OL IO D Y N E E M A® E X PAN D S O U R E N G I N E E R E D F I B E R S AN D PAN E L S TECHNOLOGY LFT Tapes Laminates/Panels Shapes Pultrusion Engineered Fibers 8
Slide 9: Composites Serve Diversified End Markets
COMPOSI TES SERVE D IV ER SIF IED END MAR KETS DEFENSE INDUSTRIAL TELECOMMUNICATIONS ENERGY TRANSPORTATION Military • Law Enforcement Lifting Slings • Aquaculture 5G Applications Sustainable Infrastructure EV Battery Components First Responders High Pressure Pipe Fiber Optic Cables Offshore Wind Com
Slide 10: Q2 Performance
Q2 PERFORMANCE
Slide 11: Q2 2023 Performance vs. Guidance
Q2 2023 PERFORMANCE VS. GUIDANCE ( T O TA L C O M PA N Y ) Sales Adjusted EBITDA Adjusted EPS $845 $130 $131 $0.63 $824 $0.60 Guidance Actual Guidance Actual Guidance Actual (in millions) (in millions) 11
Slide 12: Q2 2023 Performance vs. Guidance
Q2 2023 PERFORMANCE VS. GUIDANCE ( T O TA L C O M PA N Y ) Adjusted EBITDA Margin % 15.9% Better-than-expected margins driven by: 15.4% • Favorable mix - strong demand for composite applications • Raw material deflation Guidance Actual 12
Slide 13: Q2 EBITDA Bridge
Q2 EBITDA BRIDGE ( T O TA L C O M PA N Y ) Adjusted ($ millions) EBITDA Q2 2022 Pro Forma $ 172) Demand (68) • Demand conditions vs. CAI: expectations: Price / Mix 7) US & Canada Deflation 11) LATAM SEM: EMEA Price / Mix 2) Asia Deflation 6) Net Price Benefit 26) • Net price benefit remains greater
Slide 14: Q2 Sequential Sales by Region
Q2 2 023 SEQUENTI AL SAL ES BY REGI ON Q2 2023 vs. Q1 2023 US & Canada Flat EMEA Asia -8% Latin America +6% -1% Total Avient -2.6% 14
Slide 15: 2023 Guidance
2 0 2 3 G U I DA N C E
Slide 16: 2023 Guidance
2023 GUIDANCE Sales Adjusted EBITDA Adjusted EPS $3,280 $525 $2.40 $800 $128 $0.56 Q3 FY Q3 FY Q3 FY (in millions) (in millions) 16
Slide 17: Cash Flow / Leverage
CASH FLOW / LEVERAGE • Focused on working capital ($ millions) 2023E management, restructuring actions to streamline Cash Flow from Operating Activities $ 320 operations Less: CapEx (140) • IT investment to further Free Cash Flow $ 180 integrate acquired businesses and capture Adjusted EBITDA $ 525
Slide 18: Sustainability as a Long-Term Revenue Growth Driver
LONG-TERM REVENUE SUSTAINABILITY GROWTH AS A GROWTH DRI VERS DRIVER Total Company Revenue Revenue From Sustainable Solutions* 2016-2022 $1,175M Other Sustainable (GDP Growth) Solutions $915M $790M 60%+ $550M $455M Key Growth Overlap $405M Drivers $340M 2016 2017 2018 2019 2020PF** 2021 2022PF*** Com
Slide 19: Sustainability Report 2022
SUSTAINABILITY REPORT 20 22 SUSTAI NA BILI TY REPORT 2022 • Provides progress on 2030 goals • Reaffirms commitment to U.N. Global Compact • Highlights ESG Performance, including ratings, awards, and certifications • Features increased carbon emissions disclosures, including Climate Change Scenario A
Slide 20: Sustainability Day
SUSTAINABILITY DAY • Virtual presentation to be held September 20, 2023 • Leadership will be conducting an investor-focused presentation around our sustainable solutions portfolio • Deep dive into how we enable customers to achieve their sustainability goals Avient Confidential 20 20
Slide 21: Stakeholder Influence Drives Demand
STAKEHOLD ER INFLUENC E D RI VES D EMA ND …are Growing at Twice the Rate as Sustainably-Branded Products… Conventional Products Consumers Governments Are demanding Are mandating changes recyclability and eco- through legislation, taxes, conscious products and regional accords Brand Owners Have commi
Slide 22: Avient
YX AVIENT
Slide 23: Appendix
APPENDIX
Slide 24: Raw Material Basket
RA W MATERI AL BA SKET Performance Additives 16% Other Raw Materials 33% Pigments 12% Non-hydrocarbon based materials TiO2 Styrenic Block 10% Copolymer 5% Dyestuffs Polypropylene 2% 5% Nylon Polyethylene 6% 11% ~40% hydrocarbon based (Grey shaded materials are hydrocarbon based, 24 includes portion
Slide 25: Peer Comparisons
PEER COMPARISONS SX<AVIENT
Slide 26: Avient Is Asset Light
AVI ENT I S ASSET LI GHT Capex / Revenue 2023E (%) 10 9 7 7 5 5 4 4 4 3 3 3 3 2 PPG AVY FUL RPM ECL HXL SCL ASH CE KWR FMC HUN EMN Avient Avient Specialty Other Specialty / Formulators Chemical Companies Source: Peer data per Bloomberg as of August 17, 2023 Note: Avient reflects 2023 estimated reven
Slide 27: Free Cash Flow Conversion
FR EE CA SH FLOW CONV ER SION 2023E (%) 89 90 83 83 81 79 78 75 76 72 68 63 53 11 RPM ECL HXL SCL CE PPG KWR AVY FUL EMN ASH Avient FMC HUN Avient Specialty Other Specialty / Formulators Chemical Companies Source: Peer data per Bloomberg as of August 17, 2023 Note: Free cash flow conversion calculat
Slide 28: Multiple Expansion
MULTI PL E EX PANSION EV / 2023E EBITDA Historic Multiple 18.6 16.5 13.8 12.7 12.6 11.3 9.5 10.1 10.0 9.7 9.5 9.4 8.3 8.7 8.7 6.5 RPM ECL HXL SCL PPG AVY KWR (2011) (2018) (2023) FUL EMN ASH CE FMC HUN Avient Avient Avient Avient Specialty Other Specialty / Formulators Chemical Companies Source: Pee
Slide 29: Segment Data
SEGMENT DATA SX<AVIENT
Slide 30: 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 Latin America 4% 6% Telecommunications 5% $3,653M $592M 4% Asia Building and Consumer 18% Construction 20% U.S. & Canada 10% 40% $1,300M $272M Transportation 9% $2,355M $402M Indus
Slide 31: Color, Additives & Inks
COLOR , AD DI TI VES & INKS 2022 REVENUE | $2.4 BILLION END MARKET REGION Telecommunications 1% Energy Latin America Building & 2% 8% Construction US & Canada 11% 34% Transportation Packaging 34% Asia 8% 20% Industrial 15% Healthcare 8% Consumer 21% EMEA 38% 31
Slide 32: Specialty Engineered Materials
SPEC IA LTY ENGI NEER ED MATERI ALS 2022 PRO FORMA REVENUE | $1.3 BILLION END MARKET REGION Energy 9% Defense Asia 15% 13% US & Canada Telecommunications 52% 10% Packaging 5% Building & Construction 8% Consumer 19% Transportation EMEA 10% 35% Healthcare Industrial 8% 16% 32
Slide 33: 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 Defense Energy Energy Defense 5% 5% 5% 8% Telecommunications Packaging Telecommunications 6% 13% 3% Building & Construction Packaging Building & 10% 27% Construction 13% US & Consumer Canada 24% EMEA Transportation (37% of sa
Slide 34: 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