In both cases, our experts helped innovative customers replace metal with specialty polymer formulations that can conduct heat, provide electrical insulation, or conduct electricity,” commented Holger Kronimus, vice president Europe, PolyOne Corporation. The two companies teamed up to develop an all-plastic temperature sensor in the 2015 Ford Edge to control heating and cooling of the vehicle’s interior.

By collaborating, PolyOne and selected developers have succeeded in establishing a time- and cost-saving means to produce the 3D-MIDs serving as heat sinks in LED lighting, which could prove an alternative to the complex printed circuit boards now fairly ubiquitous in these applications. Managing heat with specialty thermoplastics

Variations in the aesthetic appearance of rPET are caused by multiple heat cycles, as the material is recovered and reused. Formulated for addition to virgin PET and recycled PET (rPET), heat-stable ColorMatrix Optica blue toners work to correct and reduce the yellowing or color variation that typically occurs during the recycling process.

Based on its location under the hood, the material needed to provide a heat deflection temperature (HDT) rating of 68°C HDT at a load of 264 psi. This solution met the standards for heat resistance, physical properties and processing parameters. 

PolyOne Corporation Page 3 PolyOne Commodity to Specialty Transformation 2000-20052000-2005 2006 - 20092006 - 2009 2010 – 20152010 – 2015 2016 and beyond 2016 and beyond • Steve Newlin appointed, Chairman, • Steve Newlin appointed, Chairman, • Substantial EPS growth from $0.13 to all-time high of $1.96 • Substantial EPS growth from $0.13 to all-time high of $1.96 • Deliver consistent double digit annual EPS growth • Deliver consistent double digit annual EPS growth • Volume driven, commodity producer • Volume driven, commodity producer pp , , President and CEO • New leadership team appointed pp , , President and CEO • New leadership team appointed • Shift to faster growing, high margin, less • Key acquisitions propel • Shift to faster growing, high margin, less • Key acquisitions propel • Maintain >35% vitality index • Pursue strategic i iti th t • Maintain >35% vitality index • Pursue strategic i iti th t • Heavily tied to • Heavily tied to cyclical end markets • Implementation of four pillar strategy • Implementation of four pillar strategy y q p p current and future growth, as well as margin expansion • Specialty mix expands y q p p current and future growth, as well as margin expansion • Specialty mix expands acquisitions that expand specialty offerings and geographic breadth acquisitions that expand specialty offerings and geographic breadth • Performance largely dependent on non- controlling joint ventures • Performance largely dependent on non- controlling joint ventures • Focus on value based selling, investment in commercial resources and innovation to drive transformation • Focus on value based selling, investment in commercial resources and innovation to drive transformation to 65% of Operating Income – strongest mix of earnings in history to 65% of Operating Income – strongest mix of earnings in history • Invest and grow current and next generation talent • Invest and grow current and next generation talent PolyOne Corporation Page 4 Confirmation of Our Strategy SpecializationSpecialization GlobalizationGlobalization Associates Operational Operational Commercial Commercial Th W ld’ P i P id f S i li d PolyOne Corporation Page 5 The World’s Premier Provider of Specialized Polymer Materials, Services and Solutions 27 Consecutive Quarters of EPS Growth PolyOne Corporation Page 6 PolyOne At A Glance 2015 Revenues: $3.4 Billion2015 Revenues: $3.4 Billion 2015 Revenues: $3.4 Billion2015 Revenues: $3.4 Billion 7% PP&S Distribution 29% CAI 23% SEM %DSS End MarketsEnd Markets Adjusted EPSAdjusted EPS 66% 15%DSS End MarketsEnd Markets $1.31 $1.80 Adjusted EPSAdjusted EPS Textiles $1.96 $0 27 $0 21 $0.68 $0.82 $1.00 $1.31 Building & C PolyOne Corporation Page 7 $0.12 $0.27 $0.21 $0.13 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 10%Electrical & Mix Shift Highlights Specialty Transformation Old PolyOne Transformation 2020 80% nc om e* pe ra tin g In 80%+ 43% 65% % o f O 2%0% 2005 2010 2015 2020 Specialty OI $5M $87M $229M Platinum PolyOne Corporation Page 8 *Operating Income excludes corporate charges and special items JV's Performance Products & Solutions Distribution Specialty Color and Engineered Materials at the Heart of Specialty Transformation OPERATING MARGIN 16.7% 17.5% 20%+ COLOR, ADDITIVES AND INKS 15 8% 20%+ SPECIALTY ENGINEERED MATERIALS 12.2% 9.6% 9.3% 12.1% 15.8% 1 7% 4.6% 5.1% 5.5% 7.2% 8.1% 3.4% 5.1% 8.0% 8.6% 1.1% 1.3% YTD YTD PolyOne Corporation Page 9 Proof of Performance & 2020 Goals 2006 2Q 2016 2020 “Where we were” “Where we are” Platinum Vision 1) Operating Income %1) Operating Income % Specialty: Color, Additives & Inks 1.7% 18.0% 20%+ S i lt E i d M t i l 1 1% 14 9% 20%+Specialty Engineered Materials 1.1% 14.9% 20%+ Designed Structures & Solutions N/A 1.7% (TTM) 8 – 10% Performance Products & Solutions 5.5% 12.3% 12 – 14% Distribution 2.6% 6.5% 6.5 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 61% 80%+ 3) ROIC* 5.0% 12.0% 15% 4) Adjusted EPS Growth N/A 11% Double Digit PolyOne Corporation Page 10 ) j % Expansion *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period TPE’s & Film Therma-Tech™ & Sheet GEON™ Vinyl TPE + OnForce™ Gravi-Tech™ Polymer ColorantsTherma-Tech™ Film PolyOne Corporation Page 11Page 11 Target End Markets… Healthcare OnForce TPE + OnForce TPE Vibration Dampening (SEM/GLS) Source: Outdoor Industry Association TPE & Film (SEM + DSS) Thermoplastic Elastomers TPE O F Polymer Colorants (CAI) Thermatech TPE + OnForce OnForce Thermoplastic Elastomers Sheet (DSS) Polymer Colorants (CAI) PolyOne Corporation Page 12 Target End Markets… Outdoor High Performance Sound & Vibration Management Roof Systems Management Interior & Exterior Trim Interior Structural Components Fuel Handling Underhood Components g SystemsAir management Electronics & Cameras Structural Braces & Brackets Lighting Fluid Handling PolyOne Corporation Page 13 Target End Markets… Automotive ColorMatrix™ Amosorb™ ColorMatrix™ Ultimate™ UV Oxygen Scavenger Ultimate UV Light Barrier PreservaPak™ OnColor™ Smart Batch™ OnCap™ Laser Marking Additives VersaFlex™ TPE Cap Liner PolyOne Corporation Page 14 Target End Markets… Packaging Innovation Drives Earnings Growth $53 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 34% CAI & SEM Gross Margin Target ≥ 35% $20 $53 43% *Specialty Platform revenue from products introduced in last five years 2006 2015 2006 20152006 2015 Innovation Pipeline PotentialInnovation Pipeline Potential PolyOne Corporation Page 15 Ours is Not a Cost Cutting Story VolumeCommercial, R&D Adjusted 2,883 Volume (lbs in millions) $192 Commercial, R&D and Marketing Spending ($M) $721 Adjusted Gross Profit ($M) -16% +86% +138% 2,414$103 $303 2006 20152006 2015 2006 2015 PolyOne Corporation Page 16 Design and Service as a Differentiator Right Material & Color Desired Product Design Appropriate Manufacturing Process Connecting Delivering Concept to Commercialization Connecting the Dots with iQ Design Labs and InVisiO Color Design PolyOne Corporation Page 17 CommercializationInVisiO Color Design Customer First Through World-Class Service Strengthening relationships through:  Providing LSS services to small/medium sized customers  Providing training in Customer Centric Selling Skills with customers On-Time Delivery Commitment to Operational Excellence World’s Best Business Process Excellence Program in 2012* World’s Best Start-up program for Lean Six Sigma Deployment in 2009* 81% 93% 2006 2015 Working Capital % of Sales 16.2%  52% of associates trained in LSS PolyOne Corporation Page 18 2006 2015  Five consecutive years – CFO Magazine Best Working Capital Management in the chemical industry Debt Maturities & Pension Funding 102% Pension Funding** As of June 30, 2016 $700 $800 Debt Maturities As of June 30, 2016 ($ millions) 80% 90% $547 $600 $600 $700 70% $500 50% $300 $400 30% 2008 2Q 2016 $200 2022 2023 Coupon Rate: LIBOR + 2 75% 5 250% PolyOne Corporation Page 19 Net Debt / Adjusted EBITDA*= 2.3x ** includes US-qualified pension plans only*TTM 6/30/2016 Coupon Rate: LIBOR + 2.75% 5.250% (3.50%) Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return  Expanding our sales, marketing, and technical capabilities  Investing in operational  Repurchased 17.3 million shares since early 2013  10 0 million shares are Investing in operational and LSS initiatives  ~75% of capital expenditures fund growth initiatives Organic Gro th Share Rep rchases  10.0 million shares are available for repurchase under the current authorization Growth Repurchases Acquisitions Dividends Annual Dividend  Targets that expand our: • Specialty offerings • End market $0.32 $0.40 $0.48 $0.30 $0.40 $0.50 • End market presence • Geographic breadth  Synergy opportunities  Adjacent material $0.24 PolyOne Corporation Page 20 $0.16 $ $0.10 2011 2012 2013 2014 2015 2016 solutions Why Invest In PolyOne?  Addressable market exceeds $40 billion St f d t t th t t t d ti Strong performance demonstrates that our strategy and execution are working  Megatrends and emerging opportunities align with our strengths  Innovation and services provide differentiation, incremental pricing power, and competitive advantage  Strong and proven management team driving growth and performance The New PolyOne: A Specialty Growth Company g p g g g p PolyOne Corporation Page 21 The New PolyOne: A Specialty Growth Company Appendix PolyOne Corporation Page 22 2Q 2016 Financial Highlights  Performance Products & Solutions operating margin grew 370 basis $18 $16 $21 $22 PP&S Operating Profit points year-over-year to 12.3% $11 $16 $10 $14 SEM O ti P fit  SEM operating margin expanded 50 basis points to a record second $19 $20 $21 $22 SEM Operating Profit Adjusted EPS quarter level of 14.9% $13 $10 $14 $0.37 $0.51 $0.57 $0.63 $0.45 $0.70 Adjusted EPS  Second quarter adjusted EPS has grown on average 20% per year PolyOne Corporation Page 23 $0.30 $ since 2012 Note: $ in millions, except per share data Color, Additives and Inks 2015 Revenues: $0.8 Billion Solutions 48% 33% 16.7% 18.0% 20%+Operating Income % of Sales Expanding Profits2015 Revenue by Industry Segment Textiles 4.6% 5.1% 5.5% 7.2% 8.1% 12.2% Building & C i PolyOne Corporation Page 24 Electrical & 1% Specialty Engineered Materials 2015 Revenues: $0.5 Billion Solutions 49%49% 29% 14.7% 14.9% 20%+Operating Income % of Sales 2015 Revenue by Industry Segment Expanding Profits 19% 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% 8.6% 9.3% 12.1%Building & Electrical & PolyOne Corporation Page 25 Designed Structures and Solutions Solutions2015 Revenues: $0.5 Billion 97% 8-10% Operating Income % of Sales Expanding Profits2015 Revenue by Industry Segment Packaging 19% 1.4% 5.6% 7.3% 3.0% 1.0%Building & Construction Industrial 24% Transportation 33% PolyOne Corporation Page 26 2012 2013 2014 2015 2Q'16 2020 Appliances, Construction Performance Products and Solutions Solutions2015 Revenues: $0.7 Billion 79% CanadaCanada 5% Transportation 19% Wire & Cable 12-14% Operating Income % of Sales Expanding Profits 12.3% 2015 Revenue by Industry Segment Building & Electrical & El t i 1% % 5.5% 6.9% 3.8% 3.6% 5.5% 4.3% 6.3% 7.2% 8.3%7.7% PolyOne Corporation Page 27 Distribution Key Suppliers2015 Revenues: $1.0 Billion 24% Building & 4%Consumer 13%Healthcare Electrical & 23% 6 6% 6.5-7.5% 6 5% Operating Income % of Sales53% ROIC Expanding Profits 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% 6.4% 5.9% 6.6% 6.5% 6.1% PolyOne Corporation Page 28 2006 2Q 2016 Platinum Plastics: Key to Future Sustainable Development 2 lbs Plastic = 3 lbs aluminum Requires 91% less energy to  recycle a pound of plastic versus  a pound of paper3 lbs aluminum 8 lbs steel a pound of paper 27 lbs glass 33% less material by weight  than aluminum 75% less material by weight75% less material by weight  than steel 93% less material by weight  than glass PolyOne Corporation Page 29 than glass Source: SPI: Sustainability and the Plastics Industry Application Examples PolyOne Corporation Page 30 Luxury Packaging with Gravitech Density Modified Polymers • Impart weight, sound and  metallic finish to caps andmetallic finish to caps and  closures for cosmetics and  spirits applications • Elevate quality and prestige  perceptions amongperceptions among  high‐end consumers • Eliminate time and cost  associated with secondary  operations and assembly PolyOne Corporation Page 31 p y Medical Device Housings with Chemically Resistant Engineered Polymers • Durable, long‐lasting products  stand up to the most  aggressive disinfectants • Minimize environmental stress  cracking and discolorationg • One of the broadest medically y approved polymer and  colorant portfolios PolyOne Corporation Page 32 Printed Circuit Boards with Thermally Conductive Polymers • Replaces metal by etchingReplaces metal by etching  circuit designs into thermally  conductive plastic • Maintains heat transfer and  cooling capabilities of metals • Reduces both weight and cost • Increases the lifetime and  reliability of electronic systems PolyOne Corporation Page 33 Color & Design Services • Greater control of color  development and supply chain • Work across entire design  process from concept to  commercialization • Inspire creativity in the use of    polymer materials, colors                 and effects • Innovative brand differentiation • Faster development timelines PolyOne Corporation Page 34 • Faster development timelines Outdoor Applications • Leading provider of high  performance specialty materials for the recreational and sports & p leisure industry • Well positioned across all segments  to address market needs  Metal to Polymer Conversion  Lightweighting  Thermal Management  Impact Performance PolyOne Corporation Page 35 Source: Outdoor Industry Association Fiber Colorants Solutions for clothing, apparel, footwear, automotive & sporting goods • ColorMatrix Fiber Colorant Solutions Proprietary advanced liquid color  formulations and equipment enable   greater efficiency and productivity Eliminates aqueous dyeing and its  associated wastewater treatment • Solid Color Concentrates Extrusion spun fibers colored viaExtrusion‐spun fibers colored via  solid masterbatch PolyOne Corporation Page 36 PET Bottling Technology • $1.5 billion attractive, growing market  Shelf‐life  extension Weight  reduction • Improve performance and reduce cost through light‐weighting,  d d t f t l ti Greater product  consistency l b l Enhanced product  aesthetics reduced waste, faster cycle times  and extended shelf life Recyclability and  reduced carbon  footprint aesthetics High heat • Aligned with megatrend of facing  climate and resource challenges: Color and Special Effects High heat resistance Sustainability benefits include  lower package weight and  improved recyclability of package  at end of use PolyOne Corporation Page 37 at end of use  Metal Replacement Solutions • Replaces metal in LED lighting • Extends LED durability and life  span eliminating hot spots • Greater design flexibility with  fewer parts • Weight reduction l f f d• Simplifies manufacturing and  lowers total production cost PolyOne Corporation Page 38 High-Barrier Packaging Containers • Capability to extrude up to 13 layers• Capability to extrude up to 13 layers • Strong oxygen and moisture vapor  transmission protectiontransmission protection • Can be made symmetrical or  asymmetrical to meet customizedasymmetrical to meet customized  needs of broad variety of applications • Barrier protection and superiorBarrier protection and superior  sensory properties PolyOne Corporation Page 39 1 Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with U.S.

If the heaters are on continuously, there is not enough heat being produced from shear. To increase shear heating, increase the screw rpm and back pressure. Increasing the back pressure increases shear heating of the material.

Composite Heat Release Technology Composite Heat Release Technology for Firearm Barrels Composite Heat Release Technology

Thermoplastics, on the other hand, can be reformed and reset over and over again using heat. Thermoplastic itself means “the ability to be reprocessed by heat.” Or, if a product is made incorrectly or needs to be adjusted during the prototyping phase, it can simply be heated again and reshaped, creating no waste.

Can be polished or heat-treated. Heat-treats and polishes well. Heat-treats and polishes well. 

No matter how many times you expose TPEs to sufficient heat they will become soft and re-harden when cool. Once a thermoset material is cured with heat it forms a permanent shape that cannot be reheated and reformed. Heat Resistance