Performance Products & Solutions (PP&S) also achieved a record return on sales of 9.0%. In addition, PP&S led the company in working capital efficiency at 4.6% of sales and did so while maintaining leading levels of customer service, as evidenced by a 96% on- time delivery rate, an all-time high. Newlin Chairman, President and Chief Executive Officer March 11, 2013 25+38+38 +73+74+95 19+15+9 +56+72+85 Operating Income % Specialty PP&S Distribution Specialty Platform Operating Income % of Total ROIC** (after-tax) 2007 3.2% 6.1% 3.0% 20% 7% 2012 9.1% 9.0% 6.4% 45% 11% 2015 TARGET 12%–16% 9%–12% 6%–7.5% 65%–75% 15% 2012 2011 2010 2009 2008 2007 0 20 40 60 80 100 120 $ mIllIOnS SPECIAlTY PlATFORm OPERATInG InCOmE 40+68+70 +86+84+90201220112010 2009 2008 2007 0 10 20 30 40 50 60 % PERCEnTAGE SPECIAlTY PlATFORm OPERATInG InCOmE % OF TOTAl* 41+33+35 +70+79+93201220112010 2009 2008 2007 0 1 2 3 4 5 6 7 8 % PERCEnTAGE ADJUSTED RETURn On SAlES^ POlYOnE STOCK (POl) PERFORmAnCE VERSUS S&P 2012 2011 2010 2009 2008 2007 0 .20 .40 .60 .80 1.00 1.20 1.40 $ DOll ARS ADJUSTED EARnInGS PER SHARE† 0 .2 .4 .6 .8 1 1.2 *Operating income excludes corporate operating income SAFETY InJURY InCIDEnCE RATE˚ 2012 2011 2010 2009 2008 2007 12.31.09 6.30.10 12.31.10 6.30.11 12.31.11 6.30.12 12.31.12 DATE 200 150 100 50 0 % P E R C E n TA G E POl S&P 600 CHEmICAlS S&P 500 InJURY InCIDEnCE R ATE 91+91+71 +54+47+45 ˚Number of injuries per 100 full time associates^Operating income excludes special items and equity income from SunBelt **ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period †EPS excluding special items and equity income from SunBelt POL 173% S&P 600 Chemicals 34% S&P 500 28% 5 ANNUAL REPORT 2012 Proof of Performance Our values, strategy, commitment and execution are clearly evident in our recent financial and operational performance.

These included headwinds from hydrocarbon based raw material deflation that reduced revenue by nearly $150 million and compressed margins, primarily within our PolyOne Distribution (POD) and Performance Products and Solutions (PP&S) segments. These associates led to an almost immediate impact in POD and PP&S, where sales cycles are often the shortest within the company. STOCK PERFORMANCE PolyOne’s stock performance has significantly outpaced the S&P 500 index and the S&P Mid Cap Chemicals index. 12.31.09 12.31.10 12.31.11 12.31.12 12.31.13 12.31.14 12.31.15 12.31.16 OPERATING INCOME % OF SALES Color, Additives & Inks Specialty Engineered Materials PP&S Distribution Designed Structures & Solutions 2006 “Where we were” 1.7% 1.1% 5.5% 2.6% N/A 2016 “Where we are” 16.0% 14.3% 11.1% 6.4% -0.9% 2020 Platinum Vision 20% + 20% + 12–14% 6.5–7.5% 8–10% 500 400 300 200 100 0 P E R C E N TA G E POL S&P MID CAP CHEMICALS S&P 500 A N N U A L D IV ID E N D $ /S H A R E RETURNING CASH TO SHAREHOLDERS .50 .40 .30 .20 .10 5+30+36+45+59+80+88+95 2.20 2.00 1.80 1.60 1.40 1.20 1.00 .80 .60 .40 .20 0 ADJUSTED EARNINGS PER SHARE*^ U .S .

GY PP COLOR CONCENTRATE 025874 PP / ROSA-RSE PP FR 8-6 LMS-1000

PP GRANITE BOWL PP GREEN BASE PP WHITE INHALER

PG 21728 OR PP PG 21722 Pearl RD PP PG 21670 Pearl PU PP

PP LIME GREEN UV PEARL PURPLE PP PP FR 8-6 LMS-1000

PG 100980.00 PU PP PG 102688.00 BU PP PG 102690.00 PU PP

PP RED MCL701 PP WHITE MCL702 PP - PURPLE

PG 35615 GN PP PG 35618 GN PP PG 35617 GN PP

PP BERRY RED-F PP GREEN PIPETTE PP BLUE PIPETTE