Slide 1: PolyOne Investor Presentation May 2020
POLYONE INVESTOR PRESENTATION MAY 2020
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS In this presentation, statements that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or for
Slide 3: Use of Non-GAAP Measures
USE OF NON-GAAP MEASURES * This presentation includes the use of both GAAP (generally accepted accounting principles) and non-GAAP financial measures. The non-GAAP financial measures include: adjusted EPS, adjusted operating income, and return on invested capital. + PolyOne’s chief operating decisio
Slide 4: Update on the COVID-19 Pandemic
UPDATE ON THE COVID-19 PANDEMIC Our priority remains on the health and safety of our associates, customers, communities and all of our many stakeholders PolyOne continues to strictly adhere to government guidelines and protocols. Within our company, we have enacted social distancing practices, trave
Slide 5: First Quarter 2020 in Review
FIRST QUARTER 2020 IN REVIEW Sales ($ millions) * Adjusted EPS from continuing operations $750.6 3% improved 23% to $0.53 compared to $0.43 in the | | % prior year first quarter a ee is * Operating income increased 5% as improved margins in all segments and cost containment actions offset a 5% sales
Slide 6: Overview of Recent Events
OVERVIEW OF RECENT EVENTS \ PBlyOne corporation . 6 Gs» . ‘ et 3 February equity offering of 15.3 shares at $33.75 generated total proceeds of $517 million ($497 million net of fees) Finished the first quarter with strong results exceeding expectations, April sales down 16% as projected due to the C
Slide 7: Clariant Masterbatch Rationale
penatenten MASTERBATCH _. RATIONALE
Slide 8: Fit with Four Pillar Strategy
FIT with FOUR PILLAR stratecy Specialization * Innovation-led organization with heavy emphasis on R&D + World-class expertise in color formulation + Strong presence in specialty end markets including Consumer, Packaging and Healthcare People Experienced and talented associates with a winning mentali
Slide 9: End Market Transformation
END MARKET [TRANSFORMATION Percentage of Total Revenue Building & Construction High Growth End Markets 50% 38% a 22% Packaging \ Consumer 5% ra | Healthcare 2006 2019E PF* 2006 2019E PF* * 2019E Pro Forma for PP&S Divestiture and Clariant Masterbatch business PolyOne Corporation 9
Slide 10: End Market Transformation: Net Sales by End Market
END MARKET [RANSFORMATION Net Sales by End Market 2006 Electrical & Healthcare Electronic 4% 7% Packaging Industrial 8% 10% Consumer 10% Wire & Cable 1% Transportation 12% | Construction 38% Pro Forma” Healthcare i Textiles Appliance 2% 2% 7% Electrial & Electronic 4% Industrial 1% Wire & Cable 9% “
Slide 11: People, Performance, Products, Planet
• • • • • • PEOPLE PERFORMANCE PRODUCTS PLANET
Slide 12: JVs, Performance Products & Solutions, Distribution, Specialty
JVs Performance Products & Solutions Distribution Specialty
Slide 13: The New PolyOne: A Specialty Growth Company
THE NEW POLYONE!: A SPECIALTY GROWTH COMPANY = Landmark portfolio transformation: > 85% of Adjusted EBITDA from specialty solutions = World-class innovation, technology and service are differentiators = Sustainability initiatives and alignment with megatrends drive above market growth in key end mar
Slide 14: Sustainability at PolyOne
SUSTAINABILITY AT POLYONE PEOPLE, PRODUCTS, PLANET, PERFORMANCE
Slide 15: Vision: World's Premier Provider of Specialized Polymer Materials
To be the world’s To be the premier world’sof provider premier provider specialized of polymer specialized polymer materials, services materials, services and and sustainable solutions solutions
Slide 16: Safety First
SAFETY eirst Injuries per 100 Workers 1.3 Spartech Acquisition American” wou Chemistry Council 0.85 0.65 laa 0.57 I 1 I 0.p7 RESPONSIBLE CARE® 2006 2007 2008 2009 2010 2011 2012 de 2014 2015 2016 2017 2018 2019 2020 Sun COMMTTRAENT TO SUSTAINABILATY 0.84 0.74 0.74 2? 0.69 0.54 0.51 action al -. 0.14
Slide 17: Great Place to Work Certified
PolyOne Corporation 17 GREAT PLACE TO WORK Great Place To Work. Certified SEP 2018-SEP 2019 USA
Slide 18: Commodity to Specialty Transformation
COMMODITY to SPECIALTY TRANSFORMATION Value * Shift to value-based selling & an innovative culture Volume + Volume driven, commodity production + Heavily tied to cyclical end markets + New leadership team appointed + Performance largely dependent on non- controlling joint ventures + Implementation o
Slide 19: PolyOne 2019 Revenue
POLYONE 2019 REVENUE Segment Distribution 41% Color Additives & Inks 34% PolyOne Corporation 19 Specialty Engineered Materials 25% $2.9 BILLION End Market Geography Industrial 14% United States 54% Healthcare 15% Europe 19% Appliance 3% Consumer Textiles 14% 5% Asia trical & m™% Electronics 6% Build
Slide 20: Proof of Performance: Adjusted EPS Expansion
PROOF OF PERFORMANCE ADJUSTED EPS EXPANSION $2.43 $2.21 CONSECUTIVE $2.06 Pro Forma for Operating Income 2006 2019 YEARS $1.96 sale of PP&S % of Sales $1.80 $1.69 Color, Additives & $1.51 Inks 1.7% 14.7% $1.31 Specialty Engineered Materials 1.1% 11.6% $1.00 Distribution 2.6% 6.3% $0.82 $0.68 w 13) 2
Slide 21: Expansion of Commercial Resources Driving Growth
EXPANSION oF COMMERCIAL RESOURCES privine crowTH 871 663 By at 207 + 32% a 1,032 a B® «20% +26% Mea a a + 45% + 34% 2014 2018 Pro Forma =R&D / Technical =Marketing = Sales () Pro Forma for sale of Designed Structures and Solutions (DSS) segment (2) Pro Forma for PP&S Divestiture and Clariant Masterb
Slide 22: Prior Acquisitions History
PRIOR ACQUISITIONS HISTORY Established Acquisitions (> 7 years) Commercial Operating Operating Resources Income Margins ($ in millions) 350 $100 19% + ~/ + ain! + 1000 bps 256 Fe At Acquisition 2019 At — At Acquisition 2019 (Commercial Resources include headcount in R&D / Technical, Marketing and Sa
Slide 23: Aligning with Trends for Growth
ALIGNING WITH TRENDS FOR GROWTH TRANSPORTATION PACKAGING HEALTHCARE CONSUMER Facilitate Light- alternative weighting energy solutions Reduce Reduce spread of infection packaging materials PolyOne Corporation 23
Slide 24: Innovation
INNOVATION Innovation comes from Customization 55% M&A 30% Innovation Pipeline 15% PolyOne Corporation 24 Research & Development Spend ($ millions) $51 | | 2006 2019 Vitality Index % of sales from products launched last 5 years 37% Le 2006 2019
Slide 25: Sustainability-Driven Revenue Growth
Lightweighting Reduced Material Requirements Improved Recyclability Renewable Energy Applications Eco-conscious Bio-derived Content Reduced Energy Use VOC Reduction $410M 14% Total Annual Growth $355M $325M 9% Organic Annual Growth $275M 2016 2017 2018 2019
Slide 26: Segment Highlights
SEGMENT HIG INNOVATING WIT PolyOne Corporation 26
Slide 27: Color, Additives & Inks: End Markets & Solutions
COLOR, ADDITIVES & INKS END MARKETS & SOLUTIONS Packaging 31% Industrial 14% ; Solid Liquid Texeyes Colorants Colorants Electrical & Electronics 1% Appliances 2% Healthcare Wire & Cable 5% 10% Transportation 7% Consumer 8% Building & Construction 9% Performance Screen Additives Printing Inks PolyOne
Slide 28: Color, Additives & Inks 2019 Revenue
COLOR, ADDITIVES & INKS 2019 REVENUE | OVER $1 BILLION 14.7% Revenue by Region Operating Income & Margin 12.2% Mexico ‘ a 3% H * South Sere gt America + 3% i * : $4 as 2005 2009 2013 2019 PolyOne Corporation 28
Slide 29: Specialty Engineered Materials: End Markets & Solutions
SPECIALTY ENGINEERED MATERIALS END MARKETS & SOLUTIONS Consumer Wire & Cable* 19% 28% Appliance 2% Transportation 14% Building & Engineered Advanced Thermoplastic Construction . 2% Formulations Composites Elastomers Packaging 6% Electrical & Electronics 12% Industrial 8% Healthcare 9% *Note: Approxi
Slide 30: Specialty Engineered Materials 2019 Revenue
SPECIALTY ENGINEERED MATERIALS 2019 REVENUE | $750 MILLION Revenue by Region Operating Income & Margin 11.6% fi 9.3% rs 5.1% 0.1% : 74 _ 3. 2005 2009 2013 2019 PolyOne Corporation 30
Slide 31: Distribution: End Markets & Suppliers
DISTRIBUTION END MARKETS & SUPPLIERS 2019 Revenue | $1.2 Billion Industrial Healthcare 19% 28% Wire & Cable 1% Transportation Packaging 18% 2% Building & Construction 4% Electrical & Electronics 5% Appliance Consumer 6% 17% Operating Income & Margin 6.3% 5.9% 4.0% 2.9% 2005 2009 2013 2019 Knee (one
Slide 32: Overview of Raw Material Purchases
OVERVIEW OF RAW $900 million of raw material purchases in 2019 excluding Distribution business Performance Additives 15% Other Raw Materials 34% Polyethylene Pigments 9% Plasticizers 4% Styrenic Block Dyestuffs Copolymer 4% Nylon ° Polypropylene Tio2 7% 4% 6% Note: All figures exclude divested PP&S
Slide 33: PolyOne Corporation
PolyOne Corporation 33
Slide 34: Reconciliation of Non-GAAP Financial Measures (Unaudited)
Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in millions, except per share data) Senior management uses comparisons of adjusted net income from continuing operations attributable to PolyOne shareholders and diluted adjusted earnings per share (EPS) from continuing operations at