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) M AY 2 0 2 4
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 5% U.S. & 9,300 102 20,000+ $3.14B
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 $1,135 $645 1. 6% annualized long term sales $231 $230 $726 $725 growth leveraging sustainable $790 solutions, composites, he
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 Avient CDP Score: 94th percentile A- ESG Ratings Performance 87th 1 2 4 5
Slide 6: May 7, 2024 Webcast Presentation
M AY 7 , 2 0 2 4 WEBCAST P R E S E N TA T I O N
Slide 7: Regional Demand Trends - Total Company
REGIONAL DEMAND TREND S-TOTA L COMPA NY Q1 SALES VS PY (EXCLUDING FX) US & Canada +2% EMEA Asia -6% Latin America Flat +2% Avient ex. FX -1.5% FX -0.5% Total Avient -2.0% 7
Slide 8: Q1 2024 Results
Q 1 2 0 2 4 R E S U LT S
Slide 9: Q1 2024 Performance vs. Q1 2023
Q1 2024 PERFORMANCE VS. Q1 2023 ( T O TA L C O M PA N Y ) Sales Adjusted EBITDA Adjusted EPS - 2% + 7% + 21% $0.76 $846 $143 $829 $134 $0.63 +150 bps 17.3%* 15.8%* Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 (in millions) (in millions) 9 * Adjusted EBITDA Margin %
Slide 10: Q1 2024 Segment Performance (Color, Additives & Inks)
Q1 2024 SEGMENT PERFORMANCE (COLOR, ADDITIVES & INKS) Sales Adjusted EBITDA - 4% + 7% $537 $97 $515 $91 • Year over year demand continues to improve for the segment but slowly due to continued weakness in Europe +180 bps 18.8%* • Raw material deflation & cost 17.0%* reduction actions primary drivers
Slide 11: Q1 2024 Segment Performance (Specialty Engineered Materials)
Q1 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 Adjusted EBITDA + 1% + 14% $314 $73 • Sales growth in defense end $310 $64 market offset by weaker demand in telecommunications end market +240 bps 23.2%* • Raw material deflation and favorable mix impact fro
Slide 12: Q1 EBITDA Bridge
Q1 EBITDA BRIDGE ( T O TA L C O M PA N Y ) Adjusted $ millions EBITDA Q1 2023 $ 134 Demand (6) CAI: • Positive net price benefit: Price / Mix (1) o Favorable raw material Deflation 16 deflation in both segments SEM: • Wage and other inflation more than Price / Mix 4 offset cost reductions/synergies
Slide 13: 2024 Guidance
®, > 2024 GUIDANCE y
Slide 14: FY 2024 Guidance
FY 20 24 GUIDA NC E Original Revised Adjusted EBITDA $505 to $535 million $510 to $535 million Adjusted EPS $2.40 to $2.65 $2.50 to $2.65 Interest Expense $105 to $110 million $105 million Adjusted Effective Tax Rate 23% to 25% 23% to 25% Capital Expenditures ~$140 million ~$140 million Q2 2024: Adj
Slide 15: CEO Top of Mind Focus Areas
CEO “TOP OF MIND” FOCUS AREAS be
Slide 16: Areas of Focus
AREAS OF FOCUS +7% Drive Profitable Organic Amplify Innovation Build Leadership & Talent Top-Line Growth with Pipeline Margin Expansion 16
Slide 17: Avient
<AVIENT
Slide 18: Appendix
APPENDIX
Slide 19: 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 20: Segment Data
SEGMENT DATA SX<AVIENT
Slide 21: 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 22: 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% 22
Slide 23: 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% 23
Slide 24: 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 25: 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 26: Three Months Ended March 31 Reconciliation
Three Months Ended March 31, 2024 2023 Sales: Color, Additives and Inks $ 515.3 $ 537.0 Specialty Engineered Materials 314.4 309.7 Corporate (0.7) (1.0) Sales $ 829.0 $ 845.7 Operating income: Color, Additives and Inks $ 74.8 $ 65.6 Specialty Engineered Materials 53.4 43.1 Corporate (34.2) (51.6) Op
Slide 27: 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.
Slide 28: Reconciliation to EBITDA and Adjusted EBITDA
Year Ended December 31, Reconciliation to EBITDA and Adjusted EBITDA: 2006 2014 Sales $ 2,622.4 $ 3,835.5 Net income from continuing operations – GAAP $ 133.5 $ 77.2 Income tax expense 29.7 11.2 Interest expense, net 63.1 62.2 Depreciation and amortization 57.1 123.9 EBITDA from continuing operation