As we produce our materials we recognize and embrace our responsibility to the planet, and we monitor several metrics to track our performance. Our operations could be adversely affected by various risks inherent in conducting operations worldwide. We made worldwide income tax payments of $46.5 million and received refunds of $29.9 million in 2018.

We have a track record of generating strong free cash flow, and this was once again the case in the second quarter," said

added, "We remain on track with our timeline for the acquisition and expect to close in September, subject to the satisfaction of customary closing conditions. 

Our strong track record of converting earnings to cash continued this quarter as we generated $100 million of free cash flow," said executive vice president and chief financial officer Bradley C.

Leverage PolyOne’s global reach Phase 1 Phase 2 Phase 3 18-20% operating margins Invest in commercial resources I N V E S T - T O - G R O W P R O O F O F P E R F O R M A N C E PolyOne Corporation 98 Commercial Operating Income Operating 243 335 $36 $90 Established Acquisitions (> 7 years) + 40% + 150% + 900 bps I N V E S T - T O - G R O W P R O O F O F P E R F O R M A N C E PolyOne Corporation 99 Commercial Operating Income (millions) 53 109 187 214 3 12 $12 $45 $22 $42 $2 Acquisition #1 (10 years) Acquisition #3 (7 years) Acquisition #2 (9 years) EBITDA Multiple 10.5x 3.0x 11.1x 7.6x 4.9x 2.8x 23% 17% 21% Return on Sales I N V E S T - T O - G R O W D R I V I N G T H E F U T U R E PolyOne Corporation 100 Commercial Operating Income Operating 44 65 $0 $0 0% 0% Advanced Composites I N V E S T - T O - G R O W D R I V I N G T H E F U T U R E PolyOne Corporation 101 Commercial Operating Income Operating 96 141 $16 $18 $36 11% 12% 18-20% Recent Color Acquisitions PolyOne Corporation 102 Average Company Size # of Possibilities Rationale 250 • Local to regional footprint • Niche technology focus • Concentrated customer base $50M–$200M 150 • Regional to global footprint • 1–3 specialty technologies • Diversified customer base >$200M 30 • Global footprint with local service • Diverse specialty technologies • Highly diversified customer & market portfolio S T R O N G P I P E L I N E D R I V E N B Y F R A G M E N T E D M A R K E T S U M M A R Y PolyOne Corporation 103 Proven track record with specialty acquisitions using invest-to-grow strategy Our approach to integration differentiates PolyOne in a competitive M&A market Trusted brand and reputation Buyer of choice Robust pipeline with a range of opportunities that fit our strategy FINANCIAL REVIEW B R A D R I C H A R D S O N PolyOne Corporation 104 PolyOne Corporation 105 A D J U S T E D E P S E X P A N S I O N 2009 2010 2011 2012 2013 2014 2015 2016* 2017* C O N S E C U T I V E Y E A R S $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 $2.06 $2.21 *Pro Forma for sale of DSS PolyOne Corporation 106 S T R A T E G I C C A S H D E P L O Y M E N T ORGANIC GROWTH Investing in R&D and capacity 11 Maintenance 40% Strategic Growth Investments 60% Capital Expenditures M&A OPPORTUNITIES Continued pursuit of strategic bolt on acquisitions that expand specialty offerings 2 SHAREHOLDER RETURN Dividends and share buybacks3 Over $400 million M&A Spending Since 2014 $809 million Share Repurchases 2011-Q1 2018 60% Increase in annual dividend over next three years 2011 2013 2015 2017 “Where we were” “Where we are” ROIC 5.0% 14.0% Operating Income % of Sales Color, Additives & Inks 1.7% 15.5% Specialty Engineered Materials 1.1% 12.1% Performance Products & Solutions 4.3% 10.7% Distribution 2.6% 6.3% P R O O F O F P E R F O R M A N C E E X P A N D I N G M A R G I N S & R O I C PolyOne Corporation 107 I N V E S T M E N T I N COMMERCIAL RESOURCES D R I V I N G R E S U L T S PolyOne Corporation 108 Largest organic revenue growth since recession $2.9 $2.9 $3.2 2015 2016 2017 Revenue in billions of $ Total + 10% Organic + 7% S U S T A I N A B L E P A T H T O D O U B L E - D I G I T E P S G R O W T H PolyOne Corporation 109 Double digit annual EPS growth Expand specialty portfolio with strategic acquisitions Innovate and develop new technologies and services Repurchase 600K-1M shares annually Increase commercial resources 6-8% annually Double acquired company margins Enhance efficiencies through Lean Six Sigma and commercial excellence R O I C D R I V E S S H A R E H O L D E R R E T U R N PolyOne Corporation 110 R O I C D R I V E S S H A R E H O L D E R R E T U R N PolyOne Corporation 111 $570 $1,650 $1,750 $2,000 ROIC Invested Capital Improving ROIC + Expanding Invested Capital = Outperforming the Market CONCLUSION B O B P A T T E R S O N PolyOne Corporation 112 1 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 attributable to PolyOne shareholders, excluding special items, to assess performance and facilitate comparability of results.

GOFF Former Chairman, President and Chief Executive Officer, Andeavor Committees: 3*, 4 NEIL GREEN Executive Vice President and Chief Digital Officer, Otis Worldwide Corporation WILLIAM R. Global Operating Risks Our operations could be adversely affected by various risks inherent in conducting operations worldwide. We could be adversely affected by violations of the FCPA, UK Bribery Act and similar worldwide anti-bribery laws, as well as export controls and economic sanction laws.

Global Operating Risks Our operations could be adversely affected by various risks inherent in conducting operations worldwide. We could be adversely affected by violations of the FCPA, UK Bribery Act and similar worldwide anti-bribery laws, as well as export controls and economic sanction laws. Higher energy costs worldwide and impacts of the ongoing conflict between Russia and Ukraine could adversely impact our results of operations.

Our operations are affected by various risks inherent in conducting operations worldwide. In addition, we could be adversely affected by violations of the FCPA and similar worldwide anti-bribery laws. We made worldwide income tax payments of $32.6 million and received refunds of $1.0 million in 2011.

We harness the collective strength of more than 9,000 employees worldwide to collaborate and build on each other's ideas.  

We harness the collective strength of more than 9,000 employees worldwide to collaborate and build on each other's ideas.