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PPG Investor Overview
August, 2018
2
Notes
Forward looking statement
3
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the
Company. This presentation contains forward-looking statements that reflect the Company’s current views with respect to future events
and financial performance. You can identify forward-looking statements by the fact that they do not relate strictly to current or historic
facts. Forward-looking statements are identified by the use of the words “aim,” “believe,” “expect,” “anticipate,” “intend,” “estimate,”
“project,” “outlook,” “forecast” and other expressions that indicate future events and trends. Any forward-looking statement speaks only
as of the date on which such statement is made, and the Company undertakes no obligation to update any forward looking statement,
whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we
make on related subjects in our reports to the Securities and Exchange Commission. Also, note the following cautionary statements:
Many factors could cause actual results to differ materially from the Company’s forward-looking statements. Such factors include the
impacts of the natural disasters in Mexico, Puerto Rico and the U.S., and their length and severity, any currently unanticipated future
impacts from the natural disasters, global economic conditions, increasing price and product competition by foreign and domestic
competitors, fluctuations in cost and availability of raw materials, the ability to increase selling price, the ability to recover margins, our
ability to maintain favorable supplier relationships and arrangements, the timing of and the realization of anticipated cost savings from
restructuring initiatives, difficulties in integrating acquired businesses and achieving expected synergies therefrom, economic and
political conditions in the markets we serve, the ability to penetrate existing, developing and emerging foreign and domestic markets,
foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of future legislation, the impact of
environmental regulations, unexpected business disruptions, our ability to successfully remediate the material weakness in our internal
control over financial reporting disclosed in this report within the time periods and in the manner currently anticipated, the effectiveness
of our internal control over financial reporting, including the identification of additional control deficiencies, further expenditures related to
our restatement, the results of governmental actions relating to pending investigations, the results of shareholder actions relating to the
restatement of our financial statements and the unpredictability of existing and possible future litigation. However, it is not possible to
predict or identify all such factors.
Consequently, while the list of factors presented here and under Item 1A of PPG’s 2017 Form 10-K/A is considered representative, no
such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant
additional obstacles to the realization of forward-looking statements.
Consequences of material differences in the results compared with those anticipated in the forward-looking statements could include,
among other things, lower sales or income, business disruption, operational problems, financial loss, legal liability to third parties, other
factors set forth in Item 1A of PPG’s 2017 Form 10-K/A and similar risks, any of which could have a material adverse effect on the
Company’s consolidated financial condition, results of operations or liquidity.
4
PPG: Our employees protect and beautify the world
Ranked among the “World’s Most Admired Companies” in its industry by
Fortune Magazine in 2018
*As Restated and from Continuing Operations
A global maker
of paints,
coatings,
and specialty
materials, with
full-year net
sales of $14.7
billion* in 2017
A leader in all
our markets:
construction,
consumer
products,
industrial and
transportation
markets and
aftermarkets
Headquartered
in Pittsburgh,
Pennsylvania,
with operations
in more than
70 countries
Founded in
1883
Fortune 500:
Ranked 183
5
External awards and recognitions
Corporate Social Responsibility Awards• No. 31 on the U.S. 500 Newsweek Green Rankings
• PPG received a perfect score of 100 percent on the Human Rights Campaign Foundation’s 2018 Corporate Equality Index
Product and Process Awards• Two PPG technologies earned 2017 R&D 100 awards in the mechanical
devices/materials category; premium compact process primer and LIQUID NAILS® FUZE*IT® All Surface adhesive
Customer Awards• PPG named by John Deere as supplier of the year
• PPG Tianjin, China business earned the Excellent Supplier award from Yanfeng Group
• PPG Sealants Europe business received Airbus award Best Performer
2017 key achievements
Strategic Portfolio Actions•Completed the final divestiture of the fiber glass business
•Made 4 bolt-on acquisitions with annual revenue of nearly $200 million
Strong Financial & Operational Performance •Adjusted EPS* up 4% vs. prior year despite significant raw material inflation
•Cost savings from restructuring actions totaled $50 million; overhead costs as a percent of sales about 90 basis points lower than prior year
•Operating working capital reduced by 50 basis points vs. prior year
Cash and Cash Deployment
•$1.5 of cash and short-term investments at year-end
•Quarterly dividend increase – 46th consecutive year (11% annual increase)
•Deployed $1.1 billion
• $815 million for share repurchases
• $325 million for acquisitions
6 * See appendix for adjusted EPS trend reconciliation
7
Business Portfolio Optimization
~$11.2B (2007) ~$14.7B
Percentage of Sales (as originally reported)
In 2017, finalized a multi-year strategic portfolio transformation with
the sale of U.S. fiber glass business
100%
0%
20%
40%
60%
80%
100%
2005 2010 2016 Current
Coatings Optical Commodity Chemicals Glass
PPG Coatings has delivered 9% earnings CAGR over this period
Other
Global paint and coatings industry (~$140B)
Competitive Landscape
Source: Orr and Boss; Company Annual Reports; PPG estimates
PPG is a leader in industry consolidation with many smaller competitors8
Source: IPPIC, Company Annual Reports, PPG estimates
Strong fundamentals
• Stable earnings/cash
• Growth potential
• Low capital intensity
• Technology & service
• Consolidating industry
U.S & Canada
43%
EMEA30%
Asia/Pacific17%
Latin America
10%
Coatings geographic mix
Source: IPPIC
Coatings Industry
Geographic Sales Mix
PPG Coatings
Geographic Net Sales Mix
PPG - Opportunities to expand in Asia and globally
U.S. & Canada
18%
EMEA30%
Asia Pacific45%
Latin
America
7%
9
EMEA includes Europe, Middle East, and Africa
Coatings end-use markets
~40%
~60%
Special-Purpose Coatings:• Aerospace
• Automotive OEM
• Automotive Refinish
• Specialty Coatings & Materials
Architectural41%
General Industrial29%
Automotive OEM8%
Refinish6%
Protective & Marine
12%
Packaging2%
Aerospace1%
Industry End-Market Demand (~$140B Sales Value)
Source: IPPIC, Company Annual Reports, PPG estimates
• General Industrial
• Protective & Marine
• Packaging
Architectural
Coatings
PPG Coatings End-Use Net
Sales Mix
PPG is in line with the global coatings industry end-use mix
10
PPG end-use markets
Automotive OEM, Parts
& Aftermarket, 35% Construction - New &
Maintenance, 40%
General Industrial, 15%
Aerospace and Marine
(New & Aftermarket), 10%
Approximate % of Total PPG Net Sales
Diverse end-use markets globally
11
#1 Market Position #2 Market Position #3 Market Position #4+ Market Position No Meaningful Presence
PPG global market positions
Source: IPPIC; company annual reports, PPG estimates
Position by Coatings Vertical
PPG growth opportunity: To be #1 or #2 in every country/vertical
Source: Orr and Boss; Company Annual Reports; PPG estimates
Lower <---- Level of Consolidation ----> Higher
---------- Participation in all end-use markets -----------
Global
Position
Arch
~$58B
General
Industrial
~$41B
Protective
& Marine
~$18B
Auto OEM
~$11B
Refinish /
Collision
~$8B
Packaging
~$3B
Aerospace
~$1B
PPG #2 #2 #3 ~#3 #1 #2 #2 #1
Sherwin
Williams#1
AkzoNobel #3
Nippon #4
RPM #5
Axalta #6
BASF #7
12
PPG Growth Levers
Innovation
Growth
Economic
Growth
Acquisition
Growth
• Technology-led organic growth
• Leverage expertise across coatings end-use markets
• Proven track record of successful integrations
• Active pipeline of global acquisition targets
• European volumes ~13% below 2008 levels
• Strong incremental margins due to cost management
Growth opportunities in many areas 13
14
Technology Development Drives Future GrowthPPG has leading positions in significant new technologies
'09 '11 '13 '15 '16 '17
0
20
40
60
80
100
2006 2014 2016 2017
Global Auto Industry Builds (MM)
Compact Process
Traditional Process
Opportunity
Packaging – BPA-NI CoatingsAerospace – Lightweight Sealants
Increased adoption of PPG’s internal can coatingsPPG’s sealants eliminate over 2,000 lbs. per aircraft
Automotive OEM – Compact Process Automotive Refinish – Waterborne Coatings
PPG is the global waterborne leader;
shop conversions continue PPG is the global leader; significant growth potential remains
Food & beverage applications
PPG Global Waterborne Collision Shops
Sustainable Growth by Design
We partner with suppliers, applicators, equipment vendors and end users to innovate
Environmental regulation and raw material inflation create opportunities
2017 R&D 100 Winner
2017 R&D 100 Finalist2016 R&D 100 Winner
ENVIROCRON® extreme protection
powder coating
AEROCRON® 2100, first e-coat
Primer for the aerospace industry
2016 R&D 100 Winner
ENVIRO-PRIME® EPIC
Equipment
Supplier
ENVIROBASE®
Liquid Nails® FUZE*IT bonds materials
in any weather
15
Acquisitions contribute to sales growth
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Acquisition Sales Growth Over Prior Year
Notable acquisitions:
2008 – SigmaKalon
2013 – AkzoNobel NA
2014/5 – Comex (partial years)
+5% average sales growth
from acquisitions
(USD MM)
Acquisitions supplement organic growth
16
17
PPG Reporting Segments Drive Our Business
Performance Coatings
• Aerospace
• Architectural Coatings
- Americas & Asia Pacific
- Europe, Middle East, Africa
• Automotive Refinish Coatings
• Protective & Marine Coatings
40%
Industrial Coatings
• Automotive OEM Coatings
• Industrial Coatings
• Packaging Coatings
• Specialty Coatings & Materials
Performance coatings segment
Strategic Business Units:
• Automotive Refinish
• Aerospace
• Architectural Americas & Asia Pacific
• Architectural EMEA
• Protective & Marine
Net Sales (US$B) (incl. acquisition and currency impacts)
Segment Traits:
• Distribution focus
• Solid operating margins
• Consistent cash generation
• Stable industries
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
2007 '09 '11 '13 '15 2017
Acquisition-Related
11.8%13.1%
14.9%15.2%
0%
4%
8%
12%
16%
'11 '13 '15 2017
Segment Operating Margins
CAGR = 9%
18
EMEA includes Europe, Middle East, and Africa
'08 '10 '12 '14 '16 '17
US & Canada
48%
EMEA28%
Asia21%
Latin America
3%
'07 '09 '11 '13 '15 '16 '17
Net Sales in USD (incl. acquisition and currency impacts)
PPG Refinish Sales 2017
Automotive Refinish
CAGR = 2%
CAGR = 12%
19EMEA includes Europe, Middle East, and Africa
• Color complexity
• Emerging regions growth
• Technology shift to waterbase
• Value added programs and training
PPG Global Waterborne Paint Shops
Key Industry Trends
2007 '08 '09 '10 '11 '12 '13 '14 '15 '16 2017
Recent Acquisitions
Aerospace
CAGR = 5%
50%
50%
Aerospace Net Sales Mix
Aftermarket
OEM
Aerospace Products
• Deft Coatings
• Waterborne / Military market
• Cuming Microwave
• Radar absorbing products
• Advanced military
applications
• Sealants Europe (Le Joint
Francais)
• Position in continental
Europe
• Established distribution20
• Coatings
• Sealants
• Transparencies
• Chemical Management
Net Sales in USD(incl. acquisition and currency impacts)
30%
70%
Military
Commercial
0.0
3.0
6.0
9.0
12.0
15.0
Ind. Maint.
Energy
Infrastructure
MarineAftermarket
Marine OEM
2008 '09 '10 '11 '13 '15 '16 2017
U.S. & Canada
EMEA
Asia
EMEA includes Europe, Middle East, and Africa
PPG PMC Net Sales 2017
PMC Industry Segments ($B)
Protective & Marine Coatings (PMC)
0%
25%
50%
75%
100%
Protective
Coatings
Marine New Build
Marine After
Market
PPG Net Sales Mix
Latin America
21
Today2008
Protective
Coatings
Marine New Build
Net Sales in USD(incl. acquisition and currency impacts)
Marine After
Market
100
200
300
400
500
600
700
800
900
1,000
2009 2012 Current
Architectural Coatings (Americas & Asia)
National Retailers
(DIY) 35%Company Stores
50%
Independent
Dealers 15%
PPG U.S. & Canada
Architectural Approximate Net Sales Mix
0% 25% 50% 75% 100%
PPG U.S. Architectural
Net Sales Mix
Maintenance / Repaint
Non-ResidentialResidential
25%
65% 35%
New
Construction
PPG U.S. & Canada
Architectural Store Count
75%
2008 2010 2012 2014 2016
Net Sales in USD (incl. acquisitions and currency impacts)
CAGR = +11%
22
• Leading architectural coatings position in Mexico; well-recognized regional brands
• ~4,400 independently owned/operated concessionaire locations in Mexico
• Over 200 locations added in 2017
• Over 650 points-of-sale across Central America (incl. Glidden)
Latin America Points-of-Sale Growth
Architectural Coatings (Latin America)
3,632 3,806
4,001 4,213
4,431 84 88
224
324
655
3,000
3,500
4,000
4,500
5,000
5,500
2013 2014 2015 2016 2017
Mexico Central America
23Opening one new store approximately every other day
2009 2011 2013 2015 2016 2017
600
640
680
720
2013 2014 2015 2016 2017
More
Stability
in End-
Market
Maintenance
80%
New Construction
20%
End-Use Market Demand
Company-Owned Stores
24
EMEA includes Europe, Middle East, and Africa
Net Sales in Euro (incl. acquisitions)
#1 PPG Position
#2 PPG Position
#3 PPG Position
>#3 PPG Position
No PPG Participation
Strong Market Positions
#1 or #2 in 80% of Penetrated
Markets
Iceland
United Kingdom
Portugal
Spain
France
Germany Poland
Romania
Denmark
Norway
Finland
Estonia
Latvia
Lithuania
Belarus
Ukraine
Turkey
Greece
Austria
Bulgaria
Architectural Coatings (EMEA)
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
'11 '13 '15 2017
11.5%
15.7%
18%
16.2%
Industrial Coatings Segment
Strategic Businesses
• Automotive OEM
• Industrial
• Packaging
• Specialty Coatings & Materials
$2.0
$3.0
$4.0
$5.0
$6.0
2007 '09 '11 '13 '15 2017
U.S. & Canada
EMEA
Asia LA
Segment Net Sales Mix
Segment Operating Margins
CAGR = 5%
25
EMEA includes Europe, Middle East, and Africa
Net Sales (US$B) (incl. acquisition and currency impacts)
All
Remaining
Customers
U.S. & Canada
EMEA
Asia
LA
PPG Automotive OEM Coatings
Automotive OEM Coatings
CAGR = 4%
50
55
60
65
70
75
80
85
90
95
2008 '09 '10 '11 '12 '13 '14 '15 '16 2017
Global Auto OEM Production
MM Units
PPG Auto OEM Coatings
Customer Mix
Top 7 PPG
Auto OEM
Customers
U.S.
Based
Non-U.S.
Based
26
EMEA includes Europe, Middle East, and Africa
CAGR = 4%
Net Sales in USD (incl. acquisition and currency impacts)
2018 estimated to be +1% growth
U.S. & Canada
EMEA
Asia
LA
EMEA includes Europe, Middle East, and Africa
2004 '06 '08 '10 '12 '14 2016 2017
PPG Asian Industrial Coatings SBU Net Sales
'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17
Industrial Coatings SBU
Net Sales Mix
Industrial Coatings SBU
CAGR = 6%
CAGR = 13%
Net Sales in USD (incl. acquisition and currency impacts)
• Heavy-duty equipment
• Appliances
• Electronic materials
• Coil
• Automotive accessories
• Sporting equipment
• Office furniture
Markets served include:
27
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17
Packaging Coatings
CAGR = 2%
Beverage
Food
Other
Industry Container Use
Source: PPG Estimates
Interior
ExteriorEnds
Other
28
BPA-NI technologies
Key Trends
• Conversion to BPA-NI technology
continues for food and beverage
cans globally
• Metal can industry provides growth
in all regions due to performance,
safety and sustainability
Net Sales in USD(incl. acquisition and currency impacts)
'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17
Specialty Coatings & Materials
CAGR = 5%
Key PPG Products / End-Use Markets
• Silica –Tires, battery separators, coatings, various industrial uses
• Teslin® – Printing materials, labels, secure credentials/IDs, various industrial and consumer uses
• Monomers and Dyes – Materials and coatings used in eyeglass lenses
• OLED – OLED materials for Universal Display Corporation
Net Sales in USD (incl. acquisition and currency impacts)
Silica
TESLIN® substrate
Optical Monomers and Dyes
OLED materials
29
$3.71
$4.67
$5.33
$3.00
$3.50
$4.00
$4.50
$5.00
$5.50
$6.00
+12% CAGR
PPG adjusted earnings per diluted share trend
Key Drivers
• Global business
expansion
• Innovation-led organic
growth
• Ongoing, aggressive cost
management
• Ongoing and disciplined
cash deployment
• Acquisitions &
synergies
• Share repurchases
• Uneven global end-market
demand 2015/2016
Transformed portfolio and accretive cash deployment drive earnings growth
* Adjusted Earnings Per Diluted Share from Continuing Operations – See appendix for reconciliations to reported EPS
$5.64
30
$5.86
Coatings cost comparison
Sold in 2,000
Liter Totes
Sold in 1
Gallon
Paint
Cans
And 5
Gallon
Buckets
Average Architectural Coatings
Industry estimates – figures vary greatly by end-use and application
Source: PPG Estimates
Average Industrial Coatings
Raw material basket and manufacturing/distribution costs are different
Resins and Latex
Titanium Dioxide
Solvents and Pigments
Additives
Manufacturing
Packaging
Distribution - intermediate
Distribution - final
Resins and Latex
Titanium Dioxide
Solvents and Pigments
Additives
Manufacturing
Packaging
Distribution - final
31
Operations in ~70 countries
PPG
Presence
PPG Global Operations: Broad Footprint
43%
30%
17%
10%
U.S. & Canada
EMEA
Asia/Pacific
Latin America
2017 Sales Mix*
Global footprint delivers balanced coatings portfolio and opportunities for growth
*from continuing operations
32
PPG Europe, Middle East and Africa
Broad regional footprint to supply future demand growth33
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
0
100
200
300
400
500
600
EB
IT M
arg
in o
n S
ale
s
Ea
rnin
gs
Total PPG Europe, Middle East and Africa
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Sa
les
Other PPG BusinessesArchitectural Coatings EMEA
PPG Net Sales Mix (MM €) Earnings (MM €)
Strong Earnings Trajectory; RM Inflation Pressure Impacted 2017
34
PPG Asia Pacific Manufacturing Footprint
Greater China
Mainland China
Tianjin Auto/IC
Tianjin ASC
Suzhou ASC
Suzhou Packaging/IC
Foshan
Wuhu
Zhangjiagang
Songjiang
Jiading
Kunshan
Wuhan
Nansha
Australia
Clayton
Villawood
Tullamarine
Taiwan
Alltech
Taoyuan
Chia Yi**
Thailand
Bangplee
Korea
Cheonan
Busan
Ulsan**
X
Malaysia
Petaling Jaya
Johor Bahru
New Zealand
Auckland
X
Indonesia
Jakarta
Japan
Nagoya
Vietnam
Jahor
India
Sriperumbudur**
Moraiya**
Pondicherry **
Sari **
Dahej**
** Joint Venture
XX
Philipines
Manila
Singapore
Singapore
Extensive region-wide coverage35
Australia
Clayton
Villawood
Tullamarine
1,625
2,457 2,523
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2009 2013 2017
Consolidated Net Sales*
187
297 361
$0
$100
$200
$300
$400
2009 2013 2017
Segment Income*
Significant profitable growth
$MM - USD
* Recast for discontinued operations
PPG Asia Pacific Financials
$MM - USD
36
Strong and growing Asian presence (excl. Japan)
Many Leading Asia Markets (excl. Japan)
Performance
Industrial
Broad, full coatings business portfolio
PPG Asia Net Sales Mix (2017)Industry Coatings Demand for Asia
Coatings Industry in Asia remains Fragmented
Sources: PPG Internal estimates (excludes Japan includes ARCH)
PPG Market
Position
PPG ’10 - ’17
CAGR
Automotive OEM #1 8%
General Industrial #2 6%
Packaging #1 5%
Auto Refinish #1 5%
Aerospace #1 6%
Protective/Marine #4 -10%
Architectural #7 1%
Total Coatings #3 3%
Akzo8%
Nippon 7%
PPG 6%
Asian Paints6%
Kansai 3%
Valspar 2%
BASF 2%
Jotun 2%
Dulux 2%
Axalta 2%
KCC 1%Hempel
1%TOA 1%Carpoly 1%
Others 56%#14,200
players
37
64%12%
12%
7%5%
China
India
SoutheastAsia
Korea
Robust cash generation over time while transforming the business portfolio
$2.0B
$1.5B
$2.4B
$1.7B
$1.2B
$1.5B
$1.9B
$1.5B
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
'10 '11 '12 '13 '14 '15 '16 '17
Approximate Cash & Short Term Investments
* As originally reported, not adjusted for business divestitures
Millions USD
PPG cash trends
38
$1,000
$1,250
$1,500
$1,750
$2,000
2010 '11 '12 '13 '14 '15 '16 '17
Cash From Operations*
+ Adjusted Cash from Operations; excluding cash paid to fund the Pittsburgh Corning asbestos trust
++ Adjusted Cash from Operations; excluding cash taxes from the North American fiber glass business divestiture
Adju
ste
d +
Adju
ste
d+
+
Cash Use Summary:
Grow Business ~60%
Return to Shareholders ~40%
19%
36%17%
28%
Past 10 Years (~$20B)(2008 – 2017)
Approximate 2017 Cash Uses
$ in millions – As reported, not adjusted for business divestitures
Legacy of consistent and prudent cash deployment
Balanced cash deployment
39
$360
$325
$435
$800
Capital Spending
Acquisitions
Dividends
Share Repurchases
* Adjusted to exclude certain non-recurring charges, see appendix for reconciliation. All years as originally reported,
not adjusted for business divestitures.
ROC growth demonstrates successful acquisition integration
PPG return on capital (adjusted)*
40
11.3%
8.5%
14.0%
16.6%
18.3%
16.1% 16.0%
17.2%16.7%
16.1%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Cap
ital ($
MM
)
Re
turn
on
Cap
ital
Capital Return on Capital
$0
$200
$400
$600
$800
$1,000
$1,200
'08 '10 '12 '14 '16 ‘17
0
100
200
300
400
500
600
700
800
2018 2019 2020 2021 2022 2023 2025 2027 2028 2029 2038 2040 2044
USD Notes
EUR Notes
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
'78 '81 '84 '87 '90 '93 '96 '99 '02 '05 '08 '11 '14 '17
46 Years of Increased DividendsDividends per share – Adjusted for
stock splits
US$MM
Long-Term Debt Maturity
Schedule13%
7%
3% 3%3%
2% 2%3%
4%
3% 2%
0%
2%
4%
6%
8%
10%
12%
14%
1980 || 1990 || '02 '04 '06 '08 '10 '12 '14 '16 '17
Capital Spending as % of Sales (As originally reported, not adjusted for business
divestitures)
Last 5 years
Average =
~3.0%
PPG Share Repurchases
US$MM
Average
~$600MM
Average
~$840MM
PPG financial hallmarks
41
Last 3
years =
9%
PPG Shared Services Centers
Ohio, USA
Brno, Czech
Republic
Kuala Lumpur, Malaysia
Tianjin, China
42
Mexico City, Mexico
• Supports all PPG’s businesses in all regions
• Cost effectiveness and scalability
• Playbook for integration of acquisitions
Adjusted EBITDA from continuing operations as percent of sales as reported in company reports (excluding unusual items); See Appendix for
reconciliations.
15.0%
13.7%
15.0%
12.1%12.7%
16.2%
13.9%
15.4%
12.9%13.2%
15.7%
17.4%
16.0%16.3%
14.8%
13.5%
19.1%
17.9%
16.9%
15.4%
13.0%
13.7%
20.6%
17.4%
16.1%
11.6%
13.3%
19.3%
-1.0%
1.0%
3.0%
5.0%
7.0%
9.0%
11.0%
13.0%
15.0%
17.0%
19.0%
21.0%
23.0%
PPG Sherwin Williams Valspar Akzo Nobel RPM Axalta
Full Year EBITDA as % of Net Sales
2013 2014 2015 2016 2017
N/AN/A
Coatings Peers EBITDA %
Consistent coatings industry margin expansion across varying economic conditions
43
Adjusted EBITDA from continuing operations as percent of sales as reported in company reports (excluding unusual items);
See Appendix for reconciliations.
PPG remains a margin leader across coatings sector end-use markets
17.4%16.1%
11.6%13.3%
19.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
PPG Sherwin Williams Akzo Nobel RPM Axalta
2017 Full Year EBITDA as % of Net Sales
Coatings Peers EBITDA %
44
www.ppg.com
Additional Materials
and Appendix
PPG (As Restated)
Sherwin
WilliamsAkzo Nobel RPM
Axalta
Coatings
Systems
Currency USD USD Euro USD USD
Sales 14,748 14,984 9,612 4,958 4,353
Income before taxes 2,005 1,528 764 244 190
Unusual or Infrequent
Charges20 ***127 -- **216 *155
Interest, net 85 263 78 83 147
Depreciation &
Amortization460 492 276 117 348
EBITDA, adjusted 2,570 2,410 1,118 660 840
% of Sales 17.4% 16.1% 11.6% 13.3% 19.3%
EBITDA as % of Sales (excluding specials):
2017 EBITDA Reconciliation
47
-Amounts in millions, except percentages, reflects most recent year-end. Compiled from publically available segment disclosures.
-For all years presented, PPG results from continuing operations, as disclosed in the most recent 10-K and Annual Report.
-Azko Nobel results from continuing operations as disclosed in the Q4 2017 earnings release.
*Termination benefits, transition-related costs, Venezuelan foreign exchange losses and effects of deconsolidation impacts and impairments.
**Goodwill impairment charge, charge to exit Flowcrete Middle East, and severance expense.
***Transaction and integration related SG&A expense related to the acquisition of Valspar.
PPG (As Restated)
Sherwin
WilliamsValspar Akzo Nobel RPM
Axalta
Coatings
Systems
Currency USD USD USD Euro USD USD
Sales 14,270 11,856 4,191 9,434 4,814 4,074
Income before taxes 779 1,595 434 850 483 83
Unusual or Infrequent
Charges1,234 ***58 22 5 **(15) *257
Interest, net 99 154 91 91 81 178
Depreciation &
Amortization440 198 98 282 111 322
EBITDA, adjusted 2,552 2,005 645 1,228 661 840
% of Sales 17.9% 16.9% 15.4% 13.0% 13.7% 20.6%
EBITDA as % of Sales (excluding specials):
2016 EBITDA Reconciliation
48
-Amounts in millions, except percentages, reflects most recent year-end. Compiled from publically available segment disclosures.
-For all years presented, PPG results from continuing operations, as disclosed in the most recent 10-K and Annual Report.
-Azko Nobel results from continuing operations as disclosed in the Q4 2017 earnings release.
*Termination benefits, debt extinguishment and refinancing related costs, offering and transaction costs, Venezuelan foreign exchange losses
and effects of deconsolidation impacts and impairments.
**Reversal of Kirker earnout.
***Transaction and integration related SG&A expense related to the acquisition of Valspar.
PPGSherwin
WilliamsValspar Akzo Nobel RPM
Axalta
Coatings
Systems
Currency USD USD USD Euro USD USD
Sales 14,241 11,339 4,392 9,892 4,595 4,087
Income before taxes 1,745 1,549 564 992 453 158
Unusual or Infrequent
Charges198 -- (22) 80 -- 116*
Interest, net 86 62 81 91 69 197
Depreciation &
Amortization446 198 93 306 99 308
EBITDA, adjusted 2,475 1,809 716 1,469 621 779
% of Sales 17.4% 16.0% 16.3% 14.8% 13.5% 19.1%
EBITDA as % of Sales (excluding specials):
2015 EBITDA Reconciliation
49
-Amounts in millions, except percentages, reflects most recent year-end. Compiled from publically available segment disclosures.
-For all years presented, PPG results from continuing operations, as disclosed in the most recent 10-K and Annual Report.
-Azko Nobel results from continuing operations (Paints & Coatings) with certain estimates based on 2016 recast data.
*Termination benefits, transition-related costs, debt extinguishment and refinancing related costs, offering and transaction costs, Venezuelan
foreign exchange losses and effects of deconsolidation impacts and impairments
PPGSherwin
WilliamsValspar Akzo Nobel RPM
Axalta
Coatings
Systems
Currency USD USD USD Euro USD USD
Sales 14,250 11,130 4,522 9,427 4,376 4,362
Income before taxes 1,326 1,258 491 529 424 32
Unusual or Infrequent
Charges417 26 41 253 -- 126*
Interest, net 137 64 65 125 65 218
Depreciation &
Amortization422 199 101 311 90 309
EBITDA, adjusted 2,302 1,547 698 1,218 579 685
% of Sales 16.2% 13.9% 15.4% 12.9% 13.2% 15.7%
EBITDA as % of Sales (excluding specials):
2014 EBITDA Reconciliation
50
-Amounts in millions, except percentages, reflects most recent year-end. Compiled from publically available segment disclosures.
-For all years presented, PPG results from continuing operations, as disclosed in the most recent 10-K and Annual Report.
-Azko Nobel results from continuing operations (Paints & Coatings) with certain estimates based on 2016 recast data.
*Termination benefits, debt extinguishment and refinancing related costs, and transition-related costs
PPGSherwin
WilliamsValspar Akzo Nobel RPM
Currency USD USD USD Euro USD
Sales 13,198 10,186 4,104 9,663 4,079
Income before taxes 1,179 1,086 424 703 362
Unusual or Infrequent
Charges249 54 40 -- --
Interest, net 153 63 63 160 74
Depreciation &
Amortization398 188 88 308 84
EBITDA, adjusted 1,979 1,391 615 1,171 520
% of Sales 15.0% 13.7% 15.0% 12.1% 12.7%
EBITDA as % of Sales (excluding specials):
2013 EBITDA Reconciliation
51
-Amounts in millions, except percentages, reflects most recent year-end.
-For all years presented, PPG results from continuing operations, as disclosed in the most recent 10-K and Annual Report.
-Azko Nobel results from continuing operations (Paints & Coatings) with certain estimates based on 2016 recast data.
52
Continuing Operations Discontinued Operations Total PPG
Net Income EPS Net Income EPS Net Income EPS
First Quarter 2017*
Net Income Attributable to PPG as Reported $ 331 $ 1.28 $ 6 $ 0.02 $ 337 $ 1.30
Transaction-related costs 3 0.01 -- -- 3 0.01
Pension settlement charge 14 0.05 -- -- 14 0.05
Adjusted Net Income Attributable to PPG $ 348 $ 1.34 $ 6 $ 0.02 $ 354 $ 1.36
First Quarter 2016
Net Income Attributable to PPG as Reported $ 328 $ 1.22 $ 19 $ 0.07 $ 347 $ 1.29
Transaction-related costs 1 0.01 -- -- 1 0.01
Asset write-down -- -- 3 0.01 3 0.01
Adjusted Net Income Attributable to PPG $ 329 $ 1.23 $ 22 $ 0.08 $ 351 $ 1.31
First Quarter 2015
Net Income Attributable to PPG as Reported $ 300 $ 1.09 $ 22 $ 0.08 $ 322 $ 1.17
Transaction-related costs 3 0.01 3 0.01 6 0.02
Adjusted Net Income Attributable to PPG $ 303 $ 1.10 $ 25 $ 0.09 $ 328 $ 1.19
First Quarter 2014
Net Income Attributable to PPG as Reported $ 275 $ 0.97 $ 987 $ 3.51 $ 1,262 $ 4.48
Transaction-related costs 2 0.01 -- -- 2 0.01
Adjusted Net Income Attributable to PPG $ 277 $ 0.98 $ 987 $ 3.51 $ 1,264 $ 4.49
First Quarter 2013
Net Income/(Loss) Attributable to PPG as Reported $ 189 $ 0.63 $ 2,221 $ 7.52 $ 2,410 $ 8.15
Legacy pension costs 13 0.04 -- -- 13 0.04
Environmental costs 8 0.03 -- -- 8 0.03
Transaction-related costs 5 0.01 -- -- 5 0.01
U.S. tax law change enacted in 2013 (10) (0.03) -- -- (10) (0.03)
Adjusted Net Income Attributable to PPG $ 205 $ 0.68 $ 2,221 $ 7.52 $ 2,426 $ 8.20
1st Quarter Reporting Period
Adjusted EPS Reconciliation
$ in millions, except EPS
*As Restated
Continuing Operations Discontinued Operations Total PPG
Net Income EPS Net Income EPS Net Income EPS
Second Quarter 2017*
Net Income Attributable to PPG as Reported $ 497 $ 1.92 $ (1) -- $ 496 $ 1.92
Transaction-related costs 3 0.01 -- -- 3 0.01
Gain from business divestiture (24) (0.09) -- -- (24) (0.09)
Income from legal settlement (11) (0.04) -- -- (11) (0.04)
Adjusted Net Income Attributable to PPG $ 465 $ 1.80 $ (1) -- $ 464 $ 1.80
Second Quarter 2016
Net Income Attributable to PPG as Reported $ 339 $ 1.25 $ 31 $ 0.12 $ 370 $ 1.37
Transaction-related costs 4 0.02 1 -- 5 0.02
Asset write-downs 8 0.03 -- -- 8 0.03
Gain on sale of equity affiliate (13) (0.05) -- -- (13) (0.05)
Net tax effect of asbestos settlement funding 128 0.48 -- -- 128 0.48
Adjusted Net Income Attributable to PPG $ 466 $ 1.73 $ 32 $ 0.12 $ 498 $ 1.85
Second Quarter 2015
Net Income Attributable to PPG as Reported $ 311 $ 1.14 $ 26 $ 0.09 $ 337 $ 1.23
Transaction-related costs 15 0.05 -- -- 15 0.05
Business restructuring charge 105 0.39 1 -- 106 0.39
Adjusted Net Income Attributable to PPG $ 431 $ 1.58 $ 27 $ 0.09 $ 458 $ 1.67
Second Quarter 2014
Net Income Attributable to PPG as Reported $ 386 $ 1.38 $ -- -- $ 386 $ 1.38
Pension settlement charge 3 0.01 -- -- 3 0.01
Transaction-related costs 2 0.01 -- -- 2 0.01
Adjusted Net Income/(Loss) Attributable to PPG $ 391 $ 1.40 $ -- -- $ 391 $ 1.40
Second Quarter 2013
Net Income Attributable to PPG as Reported $ 315 $ 1.08 $ 26 $ 0.09 $ 341 $ 1.17
Transaction-related costs 13 0.05 2 0.01 15 0.06
Adjusted Net Income Attributable to PPG $ 328 $ 1.13 $ 28 $ 0.10 $ 356 $ 1.23
2nd Quarter Reporting Period
Adjusted EPS Reconciliation
53
$ in millions, except EPS
*As Restated
Continuing Operations Discontinued Operations Total PPG
Net Income EPS Net Income EPS Net Income EPS
Third Quarter 2017
Net (Loss)/Income Attributable to PPG as Reported $ 393 $ 1.52 $ 217 $ 0.84 $ 610 $ 2.36
Third Quarter 2016
Net (Loss)/Income Attributable to PPG as Reported $ (211) $ (0.79) $ 27 $ 0.10 $ (184) $ (0.69)
Pension settlement charges 616 2.31 -- -- 616 2.31
Adjusted Net Income Attributable to PPG $ 405 $ 1.52 $ 27 $ 0.10 $ 432 $ 1.62
Third Quarter 2015
Net Income Attributable to PPG as Reported $ 410 $ 1.51 $ 23 $ 0.08 $ 433 $ 1.59
Transaction-related costs 1 -- -- -- 1 --
Pension settlement charge 5 0.02 -- -- 5 0.02
Adjusted Net Income Attributable to PPG $ 416 $ 1.53 $ 23 $ 0.08 $ 439 $ 1.61
Third Quarter 2014
Net Income Attributable to PPG as Reported $ 340 $ 1.22 $ 31 $ 0.11 $ 371 $ 1.33
Transaction-related costs 2 0.01 -- -- 2 0.01
Pension settlement charge 2 0.01 -- -- 2 0.01
Legacy environmental reserves 86 0.30 -- -- 86 0.30
Gain on asset sales (59) (0.21) (14) (0.05) (73) (0.26)
Adjusted Net Income Attributable to PPG $ 371 $ 1.33 $ 17 $ 0.06 $ 388 $ 1.39
Third Quarter 2013
Net Income Attributable to PPG as Reported $ 188 $ 0.65 $ 38 $ 0.13 $ 226 $ 0.78
Transaction-related costs 3 0.01 1 -- 4 0.01
Legacy environmental reserves 56 0.19 -- -- 56 0.19
Business restructuring 70 0.24 3 0.01 73 0.25
Adjusted Net Income Attributable to PPG $ 317 $ 1.09 $ 42 $ 0.14 $ 359 $ 1.23
54
3rd Quarter Reporting Period
Adjusted EPS Reconciliation
$ in millions, except EPS
55
Continued Operations Discontinued Operations Total PPG
Net Income EPS Net Income EPS Net Income EPSFourth Quarter 2017*
Net Income Attributable to PPG as Reported $ 148 $ 0.58 $ 3 $ 0.01 $ 151 $ 0.59
Net tax charge for Tax Cuts and Job Act legislation 134 0.52 -- -- 134 0.52
Pension settlement charges 24 0.09 -- -- 24 0.09
Gain on sale of non-operating asset (8) (0.03) (8) (0.03)
Asset write-downs 7 0.03 -- -- 7 0.03
Adjusted Net Income Attributable to PPG $ 305 $ 1.19 $ 3 $ 0.01 $ 308 $ 1.20
Fourth Quarter 2016*
Net Income Attributable to PPG as Reported $ 87 $ 0.33 $ 253 $ 0.96 $ 340 $ 1.29
Business restructuring charge 141 0.53 2 -- 143 0.55
Environmental remediation charge 51 0.20 -- -- 51 0.20
Loss on divestiture of European fiber glass business -- -- 44 0.17 44 0.17
Net gain on disposals of ownership interests in business affiliates (8) (0.04) (25) (0.09) (33) (0.13)
Net tax effect of asbestos settlement trust funding 23 0.09 -- -- 23 0.09
Premium on early retirement of debt 5 0.02 -- -- 5 0.02
Adjusted Net Income Attributable to PPG $ 299 $ 1.13 $ 274 $ 1.04 $ 573 $ 2.19
Fourth Quarter 2015
Net Income Attributable to PPG as Reported $ 290 $ 1.07 $ 24 $ 0.09 $ 314 $ 1.16
Transaction-related costs 11 0.04 -- -- 11 0.04
Equity affiliate debt refinancing charge 7 0.03 -- -- 7 0.03
Adjusted Net Income Attributable to PPG $ 308 $ 1.14 $ 24 $ 0.09 $ 332 $ 1.23
Fourth Quarter 2014
Net Income Attributable to PPG as Reported $ 66 $ 0.24 $ 17 $ 0.06 $ 83 $ 0.30
Debt refinancing charge 200 0.72 -- -- 200 0.72
Transaction-related costs 30 0.10 6 0.03 36 0.13
Favorable foreign tax ruling (29) (0.11) -- -- (29) (0.11)
Adjusted Net Income Attributable to PPG $ 267 $ 0.95 $ 23 $ 0.09 $ 290 $ 1.04
Fourth Quarter 2013
Net Income Attributable to PPG as Reported $ 225 $ 0.78 $ 29 $ 0.10 $ 254 $ 0.88
Transaction-related costs 3 0.01 1 0.01 4 0.02
Adjusted Net Income Attributable to PPG $ 228 $ 0.79 $ 30 $ 0.11 $ 258 $ 0.90
4th Quarter Reporting Period
Adjusted EPS Reconciliation
$ in millions, except EPS
*As Restated
PPG Adjusted Earnings Per Share Trend Reconciliation
Adjusted EPS from Continuing Operations
Period 2014 2015 2016 2017**
1Q $0.98 $1.10 $1.23 $1.34
2Q 1.40 1.58 1.73 1.80
3Q 1.33 1.53 1.52 1.52
4Q 0.95 1.14 1.13** 1.19
Full Year* $4.67 $5.33 $5.64** $5.86
Year over year percentage increase in EPS
*Full year diluted EPS was calculated using the full year weighted average shares outstanding. As such, the sum of the quarters
may not equal the total EPS for the year.**As Restated
56
FULL YEAR 2017* 2016 2015 2014 2013
Net Earnings as Reported $1,369 $564 $1,405 $1,133 $1,034
Adjustments:
Debt refinancing charge - - - 200 -
Business restructuring charges - 146 106 - 73
Equity affiliate debt refinancing charge - - 7 - -
Transaction-related costs 6 6 32 42 28
Environmental remediation charges - 51 - 86 64
Pension settlement charges 38 616 5 - 13
Tax rulings/law changes 134 - - (24) (10)
Gain on sale of non-operating assets (8) - - (73) -
Gain from a legal settlement (11) - - - -
Loss on divestiture of European fiber glass business - 44 - - -
Net gain on disposals of ownership interest in business
affiliates
(24) (55) - - -
Net tax effect of asbestos settlement funding - 151 - - -
Charge related to early retirement of debt - 5 - - -
Asset write-downs 7 20 - - -
Total Net Adjustments $142 $984 $150 $231 $168
Adjusted Net Earnings $1,511 $1,548 $1,555 $1,364 $1,202
Adjusted Net Earnings
*As Restated
Amounts in Millions of USD – Not adjusted for business divestitures for comparative purposes 57
FULL YEAR 2012 2011 2010 2009 2008
Net Earnings as Reported $941 $1,095 $769 $336 $538
Adjustments:
Business restructuring charge 163 - - 141 110
Pension settlement charge - - 85 - -
Divestiture-related costs - - - - 9
Transaction-related costs 27 - - - 100
Environmental remediation charges 99 - - - -
Legal Settlement - - - - -
Debt Refinancing - - - - -
Impairments/Other - - - - -
Total Net Adjustments $289 - $85 $141 $219
Adjusted Net Earnings $1,230 $1,095 $854 $477 $757
Adjusted Net Earnings
58
Amounts in Millions of USD – Not adjusted for business divestitures for comparative purposes
FULL YEAR2017* 2016 2015 2014 2013
Adjusted Net Earnings $1,511 $1,548 $1,555 $1,364 $1,202
Net Interest Expense (after-tax) 80 94 95 143 149
Adjusted Net Earnings + Net Interest
Expense
$1,591 $1,642 $1,650 $1,507 $1,351
Capital (Average Debt & Average Equity)
as Reported
$9,473 $9,334 $9,515 $9,200 $8,212
Net Adjustment (see Net Earnings
Reconciliations)
142 984 150 231 168
Adjusted Average Capital** $9,908 $9,841 $9,603 $9,383 $8,395
Adjusted Return on Capital 16.1% 16.7% 17.2% 16.0% 16.1%
Adjusted Return on Capital
59
Amounts in Millions of USD, except percentages - Not adjusted for business divestitures for comparative purposes
*As Restated
**This table does not foot due to the rounding effect of Net Adjustments
FULL YEAR2012 2011 2010 2009 2008
Adjusted Net Earnings $1,230 $1,095 $854 $477 $757
Net Interest Expense (after-tax) 157 158 140 135 175
Adjusted Net Earnings + Net Interest
Expense
$1,387 $1,253 $994 $612 $932
Capital (Average Debt & Average Equity)
as Reported
$7,371 $7,526 $6,685 $7,088 $8,053
Net Adjustment (see Net Earnings
Reconciliations)
289 - 85 141 219
Adjusted Average Capital** $7,592 $7,526 $6,753 $7,237 $8,272
Adjusted Return on Capital 18.3% 16.6% 14.0% 8.5% 11.3%
Adjusted Return on Capital
Amounts in Millions of USD, except percentages - Not adjusted for business divestitures for comparative purposes
**This table does not foot due to the rounding effect of Net Adjustments
60
2017 Quarterly Financial Results by Reportable Segment
PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES (Continuing Operations)
BUSINESS SEGMENT INFORMATION (unaudited)
As Restated
Q1 Q2 Q3 Q4 Full Year
2017 2017 2017 2017 2017
Net sales
Performance Coatings $ 2,017 $ 2,299 $ 2,290 $ 2,124 $ 8,730
Industrial Coatings 1,469 1,505 1,486 1,558 6,018
TOTAL $ 3,486 $ 3,804 $ 3,776 $ 3,682 $ 14,748
Segment income
Performance Coatings $ 284 $ 409 $ 366 $ 262 $ 1,321
Industrial Coatings 273 264 223 212 972
TOTAL 557 673 589 474 2,293
Items not allocated to segments
Legacy items (8) 2 1 3 (2)
Transaction-related costs (4) (5) - - (9)
Pension settlement charges (22) - - (38) (60)
Gain on sale of Mexican Plaka business - 25 - - 25
Income from a legal settlement - 18 - - 18
Gain from sale of a non-operating asset - - - 13 13
Asset write-downs - - - (7) (7)
Interest expense, net of interest income (21) (22) (22) (20) (85)
Other corporate expense (56) (32) (45) (48) (181)
INCOME BEFORE INCOME TAXES $ 446 $ 659 $ 523 $ 377 $ 2,005
Amounts in Millions of USD
61
www.ppg.com
Thank you for your interest in PPG
Industries, Inc.
Contact Information:
Investors:
John Bruno
(412) 434-3466
62
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