PPG Investor Overview/media/Files/P/PPG-IR/... · •Automotive Refinish Coatings •Protective & Marine Coatings 40% Industrial Coatings •Automotive OEM Coatings •Industrial

PPG Investor Overview

April 2019

2

Notes

Forward looking statements

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 global economic conditions, increasing price and product competition by foreign and domestic competitors,

fluctuations in cost and availability of raw materials, the ability to achieve selling price increases, the ability to recover

margins, customer inventory levels, the ability to maintain favorable supplier relationships and arrangements, the timing of

realization of anticipated cost savings from restructuring initiatives, the ability to identify additional cost savings opportunities,

difficulties in integrating acquired businesses and achieving expected synergies therefrom, economic and political conditions

in international markets, 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, the unpredictability of existing and possible future litigation,

including asbestos litigation, and governmental investigations. Such factors also include risks related to the impact of the

restatement disclosed in our amended 2017 Annual Report on Form 10-K/A, including the impact on PPG’s reputation and

commercial contracts. 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 2018 Form 10-K 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 earnings, business

disruption, operational problems, financial loss, legal liability to third parties, other factors set forth in Item 1A of PPG’s 2018

Form 10-K 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

A global maker of paints, coatings and

specialty materials, with full-year net

sales of $15.4 billion in 2018

Corporate Social Responsibility Awards

• Ranked #31 on the U.S. 500 Newsweek Green Rankings

• Forbes Best Employers for Diversity in 2019

Product and Process Awards

Earned R&D 100 Awards for two technologies in the mechanical devices / materials category in 2018

Customer Awards

Named Supplier of the Year by Home Depot in 2018

• Recipient of Uni-Select’s 2018 Diamond Award

How We Rank

Our employees protect and beautify the world

Ranked among the “World’s Most Admired Companies” in its industry by

Fortune Magazine in 2018

Who We Are

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 191

PPG background and recent accolades

2018 key achievements

Strategic Portfolio Actions•Announced 6 acquisitions with annual revenue of about $500 million

• Acquisitions expanded technological capabilities and global footprint

Strong Financial & Operational Performance

•Grew adjusted EPS* vs. prior year despite significant raw material inflation

•Delivered approximately $80 million in cost savings from restructuring actions

Cash and Cash Deployment

•About $1.5 billion of cash generated from operations

•Quarterly dividend increase – 47th consecutive year (7% annual increase)

•Returned approximately $2.2 billion of cash to shareholders

• $1.7 billion for share repurchases

• $0.5 billion for dividends

5

* See appendix for reconciliation of PPG reported to adjusted EPS

6

Business portfolio optimization

~$10.2B (2005) ~$15.4B (2018)

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 is a focused coatings and paint company

Other

Global paint and coatings industry (~$140B)

Competitive Landscape

PPG has completed 20 strategic acquisitions since the beginning of 20157

Source: IPPIC, Company Annual Reports, PPG estimates

Strong fundamentals

• Stable earnings/cash

• Growth potential

• Low capital intensity

• Technology & service

• Consolidating industry

U.S & Canada

42%

EMEA31%

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%

8

EMEA includes Europe, Middle East, and Africa

Coatings end-usesIndustry End Use Demand

(~$140B Sales Value)

Source: IPPIC, Company Annual Reports, PPG estimates

PPG Coatings End-Use Net

Sales Mix

PPG is in line with the global coatings industry end-use mix

9

Automotive OEM,

Parts

& Aftermarket, 30%

Construction - New &

Maintenance, 35%

General

Industrial, 20%

Aerospace and

Marine, 15% (New & Aftermarket)

Architectural

General Industrial

Automotive OEM & Aftermarket

Protective & Marine, Packaging, Aerospace

#1 End-Use Position #2 End-Use Position #3 End-Use Position Meaningful presence No Current Meaningful Presence

PPG global end use 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

---------- Participation in all end-use markets -----------

Global

Position

ArchGeneral

Industrial

Protective

& MarineAuto OEM

Refinish /

CollisionPackaging

Aerospace

PPG #2 #2 #3 ~#3 #1 #2 #2 #1

Sherwin

Williams#1

AkzoNobel #3

Nippon #4

RPM #5

Axalta #6

BASF #7

10

PPG growth levers

Innovation

Growth

Economic

Growth

Acquisition

Growth

• Technology-led organic growth

• Leverage expertise across coatings end-uses

• Proven track record of successful integrations

• Active pipeline of global acquisition targets

• European volumes ~15% below 2008 levels

• Strong incremental margins due to cost management

Growth opportunities in many areas 11

12

Recognized industry leading innovation

2016

R&D 100 Winner

R&D 100 Winner

ENVIRO-PRIME® EPIC

R&D 100 Winner

AEROCRON® 2100, first e-coat primer

for the aerospace industry

LIQUID NAILS®

Fuze*It®

R&D 100 Finalist

ENVIROCRON® Extreme

Protection Powder Coating

R&D 100 FinalistR&D 100 Winner R&D 100 FinalistR&D 100 Winner

AEROTM Light & EasyOLYMPIC ® SMARTGUARD,

Multisurface WaterprooferAmbient Reactive Extrusion

Additive ManufacturingLow Temperature Cure

Coating System for Ferrari

2017

2018

R&D 100 Finalist

AUDIOGUARDTM for

Aluminum

R&D 100 Winner

Premium Compact

Process Primer

R&D 100 Finalist

DESOTHANE Solar Heat

Management Coatings

PPG is regularly honored as an R&D 100 Finalist or Winner

Acquisitions contribute to sales growth

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Acquisition Sales Growth Over Prior Year Notable acquisitions:

2008 – SigmaKalon

2013 – AkzoNobel NA

2014/5 – Comex (partial years)

+3% average sales

growth from

acquisitions

(USD MM)

Acquisitions supplement organic growth

13

14

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

~ ~

• Automotive Refinish

• Architectural Americas & Asia Pacific

• Architectural EMEA

• Aerospace

• Protective & Marine

15

$8.7 $8.8$8.6

$8.7

$9.1

13.9%

14.9%15.4%

15.0%14.3%

'14 '15 '16 '17 '18

US & Canada

45%

EMEA32%

Asia12%

Latin America11%

Net Sales with ROS* 2018 Net Sales by Geography

5-Year CAGR* ~ 3%

EMEA: Europe,

Middle East, and

Africa

• Distribution focus

• After market and maintenance component

• Consistent cash generation

• Stable industries

Strategic Business Units Segment Traits

$B

Performance Coatings segment

*includes acquisition and currency impact

'16 '17 '18

US & Canada

EMEA

Asia Latin America

'14 '15 '16 '17 '18

Net Sales* 2018 Net Sales by Geography

5-Year CAGR* ~1%

16

• Color complexity

• Emerging regions growth

• Technology shift to waterborne

• Value added programs and training

• Growth of advanced driver-

assistance systems

PPG Global Waterborne Paint ShopsKey Industry Trends


EMEA: Europe,

Middle East, and

Africa

3-Year CAGR ~ 5%000s

Automotive Refinish

50%

50%

30%

70%

US & Canada

EMEA Asia

'14 '15 '16 '17 '18


5-Year CAGR* ~ 6%

17

• Single aisle aircraft driving growth

• Industry consolidation and OEM

vertical integration intensify

• Stable to moderate fuel prices

• Shift to robotic applications and

automation

Net Sales MixKey Industry Trends


EMEA: Europe,

Middle East, and

Africa

Aerospace

Aftermarket

OEM Military

Commercial

US & CanadaEMEA

Asia

Latin America

'14 '15 '16 '17 '18


5-Year CAGR* ~ 2%

18

• Infrastructure ($4.4B)

• Energy ($3.8B)

• Marine Aftermarket ($2.3B)

• Industrial Maintenance ($1.9B)

• Marine OEM ($1.3B)

PPG Net Sales MixKey Industry End Uses


EMEA: Europe,

Middle East, and

Africa

Protective & Marine Coatings (PMC)

Marine After Market

Marine New Build

0%

25%

50%

75%

100%

Protective

Coatings

Marine New Build

Marine After

Market

Protective

Coatings

20182009

US & Canada

AsiaLatin

America

'14 '15 '16 '17 '18


5-Year CAGR* ~7%

19


Architectural Coatings (Americas & Asia)

Maintenance / Repaint

Non-ResidentialResidential

25%

70% 30%

New

Construction

75%National

Retailers

(DIY)

35%Company

Stores

50%

Independent

Dealers 15%

USCA Net Sales MixUS Net Sales Mix

Region Stores

USCA ~900

LA ~4,600

AP ~50

20

Architectural Coatings (Latin America)

Operating Model

• Open New Stores

• Develop Low Share Territories

• Penetrate Key Segments

• Purchase Experience

• Develop Categories & Brand/Channel

• Founded in 1952

• ~4,600 independently owned/operated concessionaire locations in Mexico

• Opening 1 new store approximately every other day

• Targeted growth rate 2 times Mexican GDP growth rate

• Over 650 points-of-sale across Central America (incl. Glidden)

• Leading architectural coatings position in Mexico; well-recognized regional brands

Mexico Concessionaire NetworkCentral America Architectural Network

Over 650 Regional Points-of-SaleConcessionaire goal: 1 store per 20k people

Current density: 1 store per 30k people

Guatemala

Glidden

StoresHome

Center

Belize8

Honduras25

Nicaragua14

Panama18

361

Costa Rica

El Salvador

90

37

120

Represents Points-

of-Sale

Consistent Growth

UK

Portugal Spain

France

Germany Poland

Romania

Denmark

Norway

Finland

Estonia

Latvia

Belarus

Greece

'14 '15 '16 '17 '18

Net Sales* (MM €) Position by Geography

5-Year CAGR* ~1%

21

Architectural Coatings (EMEA)

PPG top 3 position

Ireland


Maintenance

New Construction

End-Use Demand

More

Stability

in End-

Uses

Net Sales Mix

80%

20%

Region Stores

EMEA ~700

Home

Centers

20%

Company

Stores

48% Independent

Trade/Dealers

/Other

32%

• Automotive OEM

• Industrial

• Packaging

• Specialty Coatings & Materials

22

$5.6 $5.5 $5.7$6.0

$6.3

17.1% 18.0% 18.6%16.3%

13.0%

'14 '15 '16 '17 '18

US & Canada38%

EMEA28%

Asia25%

Latin America9%

Net Sales with ROS* 2018 Net Sales by Geography5-Year CAGR* ~ 4%

EMEA: Europe,

Middle East, and

Africa

• Technology advantaged products

• Mix of global and local customers

• High quality product performance

• Global customer footprint

Strategic Business Units Segment Traits

$B

Industrial Coatings segment

US & Canada

EMEA

Asia

Latin America

'14 '15 '16 '17 '18


5-Year CAGR* ~ 2%

23

Global Auto OEM Production

Customer MixKey Industry Trends


EMEA: Europe,

Middle East, and

Africa

Automotive OEM

50

60

70

80

90

100

'14 '15 '16 '17 2018

5-Year CAGR ~ 2%

2019 estimated to be +1% growth

All Remaining

Customers

U.S.

Based

Non-U.S.

Based

Top 7 PPG

Automotive

Customers

300

450

600

750

'14 '15 '16 '17 '18

US & Canada

EMEA

Asia

Latin America

'14 '15 '16 '17 '18


5-Year CAGR* ~7%

24

Asia Net Sales*Key Industry End Uses


EMEA: Europe,

Middle East, and

Africa

Industrial Coatings

• Heavy-duty Equipment

• Appliances

• Electronic Materials

• Coil

• Automotive Accessories

• Transportation

• Office Furniture

5-Year CAGR excl. FX ~ 4%

*stated at constant currency and includes acquisition impact

US & Canada

EMEA

Asia

Latin America

'14 '15 '16 '17 '18


5-Year CAGR* ~0%

25

Industry Container UseKey Industry Trends


EMEA: Europe,

Middle East, and

Africa

Packaging Coatings

• Growth in metal packaging industry

due to sustainability, performance

and safety

• Conversion to BPA-NI technology

continues globally

• Can makers drive toward complexity

reduction in coatings portfolio

Interior

ExteriorEnds

OtherBeverage

Food

Other

US & Canada

EMEA

Asia

Latin America

'14 '15 '16 '17 '18


5-Year CAGR* ~4%

26

Net Sales MixKey Industry Trends


EMEA: Europe,

Middle East, and

Africa

Specialty Coatings & Materials

• Mobile device transition to OLED

technology

• Growth in large diameter and tires

containing premium silica productsBeverage

Silica

Teslin

Optical Monomers and Dyes

OLED materials

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

27

http://blog.indco.com/2013/11/19/indco-industry-report-on-tote-mixers-for-2013/screen-shot-2013-11-19-at-4-13-02-pm/

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

16% 16%

11%13%

19%

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

2018 Full Year EBITDA as % of Net Sales

Coatings Peers EBITDA %

28

Adjusted EBITDA from continuing operations as percent of sales as reported in company reports (excluding unusual items); See Appendix for

reconciliations.

16%

14%

15%

13% 13%

16%

17%

16% 16%

15%

14%

19%18%

17%

15%

13%

14%

21%

17%

16%

12%

13%

19%

16% 16%

11%

13%

19%

-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

2014 2015 2016 2017 2018

N/A

Coatings Peers EBITDA %

Consistent coatings industry margins across varying economic conditions

29

2%

6%

10%

14%

0

200

400

600

2009 '10 '11 '12 '13 '14 '15 '16 '17 '18

EB

IT M

arg

in o

n S

ale

s

Ea

rnin

gs

Earnings PTPI %

0

1,000

2,000

3,000

4,000

5,000

2009 '10 '11 '12 '13 '14 '15 '16 '17 '18

Sa

les

Other PPG Businesses

Architectural Coatings EMEA

PPG Net Sales Mix (€MM) Earnings (€MM)

Modest growth continues; recent margins impacted by significant cost inflation

30

Total PPG Europe, Middle East and Africa

$1,000

$2,000

$3,000

'14 '15 '16 '17 '18

Consolidated Net Sales*

$0

$200

$400

$600

'14 '15 '16 '17 '18

Segment Income*

Recent years impacted by significant cost inflation

$MM - USD

* Recast for discontinued operations, at constant FX

PPG Asia Pacific financials

$MM - USD

31

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 (2018)*Industry Coatings Demand for Asia

*Coatings Industry in Asia remains Fragmented

Sources: PPG Internal estimates (excludes Japan includes ARCH)

PPG Market

Position

PPG ’13 - ’18

CAGR

Automotive OEM #2 2%

General Industrial #2 3%

Packaging #1 0%

Auto Refinish #1 0%

Aerospace #1 5%

Protective/Marine #4 -3%

Architectural #7 0%

Total Coatings #3 1%

Akzo9%

Nippon 8%

PPG 6%

Asian Paints 6%

Kansai 3%

S-W 3%

BASF 2%

Jotun 2%

Dulux 2%Axalta 2%

KCC 2%Hempel 1%

TOA 1%

Carpoly 1%

SKShu 1%

Others 50%

#14,200

players

32

59%14%

13%

9%5% China

India

Southeast Asia

Korea

ANZ

*PPG estimates

Robust cash generation over time while transforming the business portfolio

$1.5B

$2.4B

$1.7B

$1.2B

$1.5B

$1.9B

$1.5B

$1.0B

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

'11 '12 '13 '14 '15 '16 '17 '18

Approximate Cash & Short Term Investments

* As originally reported, not adjusted for business divestitures

Millions USD

PPG cash trends

33

$1,000

$1,250

$1,500

$1,750

$2,000

'11 '12 '13 '14 '15 '16 '17 '18

Cash From Operations*

+ Adjusted Cash from Operations; excluding cash paid to fund the Pittsburgh Corning asbestos trust

Adju

ste

d +

Cash Use Summary:

Grow Business ~45%

Return to Shareholders ~55%

20%

24%

19%

37%

Past 10 Years (~$20.0B)(2009 – 2018)

Approximate 2018 Cash Uses

$ in millions – As reported, not adjusted for business divestitures

Legacy of consistent and prudent cash deployment

Balanced cash deployment

34

$410

$380

$450

$1,720

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)*

35

8.5%

14.0%

16.6%

18.3%

16.1% 16.0%

17.2% 16.7%16.1%

15.3%

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%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Cap

ital ($

MM

)

Retu

rn o

n C

ap

ital

Capital Return on Capital

Industry leading 2018 adjusted return on

capital*

~15%

~13% ~12%

~8%

~5%

Measurable proof of PPG’s successful, disciplined and value creating M&A

*Adjusted ROC excluding nonrecurring items (see reconciliation at end of presentation)

36

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiL0N_Y5fPgAhXqlOAKHavzBBAQjRx6BAgBEAU&url=https://www.worldofchemicals.com/media/rpm-acquires-south-african-spray-paint-manufacturer-spraymate/8157.html&psig=AOvVaw08PrB_BGDJHDoTbCZH-yW5&ust=1552177438441828

PPG aggressively manages cost structure

SG&A as % of sales

Corporate cost as % of sales Recent PPG cost savings programs

Date Focus Target

Savings

Status

Q4,

2016

Reduce Europe operational footprint,

marine coatings business unit cost

structure, acquisition synergy capture

$125 million Nearly

complete

Q2,

2018

Adjust cost structure following U.S.

architectural customer assortment

changes

$85 million Underway

Q2,

2019

Continue to optimize global cost

structure

~$125 million Scope

Being

finalized

Adjusted EBITDA margin of sales (FY18)

19%16% 16%

13%11%

Source: Annual company filings

Source: Annual company filings See detailed reconciliation on following slides

37

Source: Annual company filings



$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

'09 '11 '13 '15 '17 ‘18

0

100

200

300

400

500

600

700

800

2019 2020 2021 2022 2023 2025 2027 2028 2029 2038 2040 2044

USD Notes

EUR Notes

47 Years of Increased DividendsDividends per share – Adjusted for

stock splits

$ in millions

Long-Term Debt Maturity

Schedule13%

7%

3% 3%3%

2% 2%3%

4%

3% 3%

0%

2%

4%

6%

8%

10%

12%

14%

1980 || 1990 || '02 '04 '06 '08 '10 '12 '14 '16 '18

Capital Spending as % of Sales (As originally reported, not adjusted for business

divestitures)

Last 5 years

Average =

~3.0%

PPG Share Repurchases

$ in millions

Average

~$770MM

Average

~$1,080MM

PPG financial hallmarks

38

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

'78 '83 '88 '93 '98 '03 '08 '13 '18

Last 3

years =

10%

www.ppg.com

Additional Materials

and Appendix

PPG Sherwin

WilliamsAkzo Nobel RPM

Axalta

Coatings

Systems

Currency USD USD Euro USD USD

Sales 15,374 17,534 9,256 5,322 4,670

Income before taxes 1,693 1,360 573 417 268

Unusual or Infrequent

Charges189 *499 **193 ***62 ****92

Interest, net 95 367 52 84 160

Depreciation &

Amortization497 596 239 128 369

EBITDA, adjusted 2,474 2,822 1,057 691 889

% of Sales 16% 16% 11% 13% 19%

EBITDA as % of Sales (excluding specials):

2018 EBITDA Reconciliation

41

-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.

-Akzo Nobel results from continuing operations as disclosed in the Q4 2018 earnings release.

*Mainly related to integration costs, environmental expenses, California litigation expense, and pension plan settlement expense

**Mainly related to transformation cost and one-off non-cash pension costs

***Inventory-related charges, restructuring expense, charge to exit Flowcrete China, corporate governance professional fees, and ERP

consolidation plan.

****Termination benefits, debt extinguishment and refinancing related costs, and offering and transaction costs

PPGSherwin

WilliamsAkzo Nobel RPM

Axalta

Coatings

Systems


Sales 14,748 14,984 9,612 4,958 4,353

Income before taxes 2,005 1,469 764 244 190


Charges20 *186 -- **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% 16% 12% 13% 19%



42




-Sherwin Williams results for 2017 have been adjusted for adoption of ASU 2017-01 as well as an inventory accounting change made in 2018.

*Transaction and integration related SG&A expense related to the acquisition of Valspar, in addition to inventory accounting change adjustment

**Goodwill impairment charge, charge to exit Flowcrete Middle East, and severance expense.

***Termination benefits, transition-related 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 14,270 11,856 4,191 9,434 4,814 4,069

Income before taxes 779 1,595 434 850 483 83


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 1,228 660 840

% of Sales 18% 17% 15% 13% 14% 21%



43




-Axalta results have been updated for correction of immaterial errors as noted in the 2017 10-K report.

*Transaction and integration related SG&A expense related to the acquisition of Valspar.

**Reversal of Kirker earnout.

***Termination benefits, debt extinguishment and refinancing related costs, offering and transaction costs, Venezuelan foreign exchange

losses and effects of deconsolidation impacts and impairments

PPGSherwin


Axalta

Coatings

Systems


Sales 14,241 11,339 4,392 9,892 4,595 4,084

Income before taxes 1,745 1,549 564 992 453 158


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% 16% 16% 15% 14% 19%



44



-Akzo Nobel results from continuing operations (Paints & Coatings) with certain estimates based on 2016 recast data.

-Axalta results have been updated for correction of immaterial errors as noted in the 2017 10-K report.

*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


Axalta

Coatings

Systems


Sales 14,250 11,130 4,522 9,427 4,376 4,362

Income before taxes 1,326 1,258 491 529 424 32


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% 14% 15% 13% 13% 16%



45



-Akzo 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

FULL YEAR 2018 2017 2016 2015 2014

Net Earnings as Reported $1,323 $1,369 $564 $1,405 $1,133

Adjustments:

Accounting investigation costs 11 - - - -

Impairment of a non-manufacturing asset 7 - - - -

Brand rationalization charge 4 - - - -

Costs related to a customer assortment change 14 - - - -

Accelerated depreciation from restructuring actions 7 - - - -

Business restructuring, net 46 - 146 106 -

Transaction-related costs 4 6 6 32 42

Environmental remediation charges and other costs 58 - 51 - 86

Pension settlement charges - 38 616 5 -

Tax rulings/law changes (13) 134 - - (24)

Gain on the sale of non-operating assets (20) (8) - - (73)

Legacy legal settlements 8 (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 - -

Equity affiliate debt refinancing charge - - - 7 -

Debt refinancing charge - - - - 200

Charge related to early retirement of debt - - 5 - -

Asset write-downs - 7 20 - -

Total Net Adjustments $126 $142 $984 $150 $231

Adjusted Net Earnings $1,449 $1,511 $1,548 $1,555 $1,364

Adjusted Net Earnings

Amounts in Millions of USD – Not adjusted for business divestitures for comparative purposes 46

FULL YEAR 2013 2012 2011 2010 2009

Net Earnings as Reported $1,034 $941 $1,095 $769 $336

Adjustments:

Business restructuring charges 73 163 - - 141

Pension settlement charges 13 - - 85 -

Tax rulings/law changes (10) - - - -

Transaction-related costs 28 27 - - -

Environmental remediation charges 64 99 - - -

Total Net Adjustments $168 $289 - $85 $141

Adjusted Net Earnings $1,202 $1,230 $1,095 $854 $477

Adjusted Net Earnings

47

Amounts in Millions of USD – Not adjusted for business divestitures for comparative purposes

FULL YEAR 2018 2017 2016 2015 2014

Adjusted Net Earnings $1,449 $1,511 $1,548 $1,555 $1,364

Net Interest Expense (after-tax) 92 80 94 95 143

Adjusted Net Earnings + Net Interest

Expense

1,541 $1,591 $1,642 $1,650 $1,507

Capital (Average Debt & Average Equity)

as Reported

$9,675 $9,473 $9,334 $9,515 $9,200

Net Adjustment (see Net Earnings

Reconciliations)

126 142 984 150 231

Adjusted Average Capital** $10,048 $9,908 $9,841 $9,603 $9,383

Adjusted Return on Capital 15.3% 16.1% 16.7% 17.2% 16.0%

Adjusted Return on Capital

48

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

FULL YEAR 2013 2012 2011 2010 2009

Adjusted Net Earnings $1,202 $1,230 $1,095 $854 $477

Net Interest Expense (after-tax) 149 157 158 140 135

Adjusted Net Earnings + Net Interest

Expense

$1,351 $1,387 $1,253 $994 $612

Capital (Average Debt & Average Equity)

as Reported

$8,212 $7,371 $7,526 $6,685 $7,088

Net Adjustment (see Net Earnings

Reconciliations)

168 289 - 85 141

Adjusted Average Capital** $8,395 $7,592 $7,526 $6,753 $7,237

Adjusted Return on Capital 16.1% 18.3% 16.6% 14.0% 8.5%

Adjusted Return on Capital

49

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

(in millions, except percentages) PPG**Sherwin-

WilliamsAkzoNobel RPM

Axalta

Coatings

Systems


Net Earnings as Reported 1,323 1,109 455 338 207

Total Net Adjustments, after-tax (see details

below)

126 379 107 47 79

Adjusted Net Earnings 1,449 1,488 562 385 286

Net Interest Expense (after-tax)* 92 279 58 79 121

Adjusted Net Earnings + Net Interest Expense 1,541 1,767 620 464 407

Capital (Average Debt & Average Equity) as

Reported

9,675 13,606 11,685 3,666 5,130

Net Adjustments (see above) 126 379 107 47 79

Adjusted Average Capital 10,048 13,985 11,792 3,713 5,209

Adjusted Return on Capital 15% 13% 5% 12% 8%

2018 Adjusted return on capital reconciliation

Sources for Summary of Net Adjustments:

PPG: Net income impact of non-recurring items as disclosed in the 2018 Form 10-K p. 31.

Sherwin-Williams: Net income impact of non-recurring items of integration costs, environmental expenses, California litigation expense, and pension plan settlement expense

as noted in the Fourth Quarter 2018 Earnings Press Release p. 5 (assuming a tax rate of 24%). This calculation does not include the adjustment for purchase accounting

impacts.

AkzoNobel: Net income impact of non-recurring identified items mainly related to transformation cost and one-off non-cash pension costs as noted in the Q4 and full-year

2018 results presentation p. 3.

RPM: Net income impact of non-recurring items of inventory-related charges, restructuring expense, charge to exit Flowcrete China, corporate governance professional fees,

and ERP consolidation plan as noted in the Reconciliation of Non-GAAP for 4th Quarter 2018 presentation slide 8 (assuming a tax rate of 24%).

Axalta Coatings Systems: Net income impact of non-recurring items of termination benefits, debt extinguishment and refinancing related costs, and offering and transaction

costs as noted in the Fourth Quarter and Full Year 2018 Financial Results presentation, slide 15.

*Tax impact calculated using a 24% tax rate

**Does not foot due to the rounding effect of net adjustments50

2018 Quarterly Financial Results by Reportable SegmentPPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES (Continuing Operations)

BUSINESS SEGMENT INFORMATION (unaudited)

Q1 Q2 Q3 Q4 Full Year

2018 2018 2018 2018 2018

Net sales

Performance Coatings $ 2,160 $ 2,498 $ 2,289 $ 2,140 $ 9,087

Industrial Coatings 1,621 1,633 1,528 1,505 6,287

TOTAL $ 3,781 $ 4,131 $ 3,817 $ 3,645 $ 15,374

Segment income

Performance Coatings $ 280 $ 428 $ 331 $ 261 $ 1,300

Industrial Coatings 239 223 169 187 818

TOTAL 519 651 500 448 2,118

Items not allocated to segments

Corporate (43) (23) (26) (54) (146)

Interest expense, net of interest income (21) (24) (25) (25) (95)

Legacy items 4 1 - - 5

Environmental remediation charges and other costs (34) - - (43) (77)

Business restructuring, net - (83) 12 5 (66)

Accelerated depreciation related to restructuring actions - (5) (4) - (9)

Impairment of a non-manufacturing asset - (9) - - (9)

Accounting investigation costs - (9) (2) (3) (14)

Legacy legal settlements - (10) - - (10)

Costs related to customer assortment change (4) (10) (4) - (18)

Transaction-related costs - - - (6) (6)

Gain from the sale of a non-operating asset - - - 26 26

Brand rationalization charge - - - (6) (6)

INCOME BEFORE INCOME TAXES $ 421 $ 479 $ 451 $ 342 $ 1,693

Amounts in Millions of USD

51

52

Full Year

2018

Full Year

2017

Net Income EPS Net Income EPS

Reported net income from continuing operations $ 1,323 $ 5.40 $ 1,369 $ 5.31

Net tax (benefit)/charge for Tax Cuts and Jobs Act

Legislation (13) (0.05) 134 0.52

Environmental remediation charges and other costs 58 0.24 — —

Accounting investigation costs 11 0.05 — —

Impairment of a non-manufacturing asset 7 0.03 — —

Brand rationalization charge 4 0.02 — —

Transaction-related costs 4 0.02 6 0.02

Gain from the sale of a business — — (24) (0.09)

Gain on the sale of non-operating assets (20) (0.08) (8) (0.03)

Legacy legal settlements 8 0.03 (11) (0.04)

Costs related to a customer assortment change 14 0.05 — —

Business restructuring, net 46 0.18 — —

Accelerated depreciation from restructuring actions 7 0.03 — —

Pension settlement charges — — 38 0.14

Asset write-downs — — 7 0.03

Adjusted net income from continuing operations, excluding

non-recurring items

$ 1,449 $ 5.92 $ 1,511 $ 5.86

PPG Reported and Adjusted EPS

$ in millions, except EPS

www.ppg.com

Thank you for your interest in PPG

Industries, Inc.

Contact Information:

Investors:

John Bruno

(412) 434-3466

53

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