PPG Investor Overview/media/Files/P/PPG-IR/... · “estimate,” “project,” “outlook,” “forecast” and other expressions that indicate future events and trends. Any forward-looking

PPG Investor Overview

2

Notes

Forward looking statement

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 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 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, 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 2016 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 2016 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.

3

We are a global leader in paints and coatings

4

PPG: Our employees protect and beautify the world

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 182

A global maker of

paints, coatings,

and materials, with

full-year net sales

of $14.8 billion* in

2016

5

*From Continuing Operations

PPG named “World’s Most Admired Chemical Company” by Fortune Magazine in 2017

2016 key achievements

Strategic Portfolio Actions•Divested flat glass, European fiber glass, & 2 Asian fiber glass joint ventures

•2 bolt-on acquisitions totaling $350 million

Strong Financial & Operational Performance •Adjusted EPS up 7% vs. prior year despite unfavorable foreign currency translation

•Operating working capital reduced by 120 basis points vs. prior year

Cash and Cash Deployment •$1.9 of cash and short-term investments at year-end

•Quarterly dividend increase – 45th consecutive year

•Deployed $1.4B to reach the top-end of 2 year deployment range of $2.5 billion

• $1,050MM for 2016 share repurchases

• $350MM for 2016 acquisitions

•Fully funded Pittsburgh Corning Asbestos Trust

•Annuitized significant portion of pension obligations6 * See appendix for adjusted EPS trend reconciliation

• Separation of commodity chemicals business via Reverse Morris Trust ($1.7 billion annual sales)

• Acquisition of North America architectural coatings business from AkzoNobel ($1.5 billion annual sales)

2013

• Sale of PPG’s majority interest in Transitions Optical joint venture ($0.8 billion annual sales)

• Acquisition of Comex – Mexico ($1.0 billion annual sales)2014

• 6 strategic coatings bolt-on acquisitions ($400 million annual sales)

• REVOCOAT, IVC Industrial, LeJoint Français, Cuming Microwave, Consorcio LatinAmericano, Chemfil Canada

2015

2016

Significant portfolio transformation

Coatings represents ~97% of total PPG’s annual sales7

Sale of flat glass, European fiber glass, & PPG’s interest in 2 Asian fiber

glass joint ventures ($700 million annual sales)

Acquisitions of MetoKote & Univer

Our portfolio transformation

2005 – $10.2B 2016 – $14.8B

55%

23%

22%

97%

3%

Net Sales*

Paint and Coatings

Chemicals

Glass

*From Continuing Operations; 2005 as originally reported

Paints and Coatings = $14.3BPaints and Coatings = $5.6B

Significant transactions accelerate portfolio optimization

Acquisitions: SigmaKalon (2008), AkzoNobel N.A. Architectural (2013), Comex (2014)

Divestitures: Commodity Chemicals (2013), Transitions® Optical (2014), Flat Glass (2016), Europe Fiber Glass (2016)

8

2005 - 2008

Acquired From Business

Int’l Polarizer Optical

Crown Coatings Industrial

Iowa Paint Architectural

Shanghai Sunpool Architectural

Intercast Optical

Eldorado Aerospace

Ameron PMC

Dongju (Asia) Industrial

Protec (Asia) Refinish

Sierracin Aerospace

Renner Sayerlack Architectural

ICI India (Asia) Refinish

Barloworld (Asia) Architectural

SigmaKalon Arch./ PMC /

Industrial

Bonny (Asia) Refinish

BASF Coil (N/A) Industrial

Total Sales Value ~$4.5B

Notable PPG acquisitions1997 - 2000


Akzo Nobel Auto OEM

Man-Gill Industrial

BASF Packaging

MaxMeyer Refinish

Phillips Paints Industrial

Keeler & Long Architectural

Bollig & Kemper Auto OEM

Courtaulds Packaging

Orica Refinish

Sigma Refinish

Porter Paints Architectural

ICI Refinish

ICI Industrial

Wattyl Architectural

PRC-Desoto Aerospace

Monarch Architectural

Total Sales Value ~$2B

2010 - Present


Bairun (Asia) Packaging

Dyrup Architectural

Ducol (S. Africa) Refinish

Colpisa (Columbia) Auto OEM/Refinish

Spraylat Industrial

Akzo Nobel N. America

Architectural

Comex Architectural

Le Joint Francais Aero/Auto OEM

Revocoat Auto OEM

Cuming Microwave Aerospace

IVC Industrial

MetoKote Coatings Services

Univer Architectural

Deutek Architectural

Futian Xinshi (Asia) Refinish

Total Sales Value ~$3.9B

Experienced global acquirer with excellent track record9

Acquisitions contribute to sales growth

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Acquisition Sales Growth Over Prior Year Notable acquisitions:

2008 – SigmaKalon

2013 – AkzoNobel NA

2014/5 – Comex (partial years)

+6% average sales growth

from acquisitions

(USD MM)

Acquisitions supplement organic growth

10

1.0

1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

2.8

3.0

2005 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 2016

Ind

ex

55%

97%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2007 2010 2016

Coatings Optical & Specialty

Commodity Chemicals Glass

PPG Segment Net Sales*

Portfolio shift to coatings end-use markets drives earnings growth

Coatings Segments

Earnings Growth (Indexed to 2005)**

CAGR = 10%

*2005-2010 as originally reported, not adjusted for divestitures; 2016 Sales from Continuing Operations

**As originally reported, not adjusted for divestitures

~$10.2B ~$14.8B

Strengthened business portfolio

11

45%

29%

16%

10%

2016 - $14.8B

U.S. & Canada

EMEA

Asia/Pacific

Latin America

PPG’s transformation

Improved geographic profile with growing emerging regions

Sales in USD, EMEA includes Europe, Middle East, and Africa

72%

20%

6%

2%

2005 – $10.2BNet Sales*

Emerging Regions = 8% Emerging Regions = 26%

12

* 2005 – as originally reported, not adjusted for divestitures; 2016 – Sales from Continuing Operations

Other

Global paint and coatings industry (~$130B)

Recent Notable Coatings Transaction/Consolidation Activity:

PPG – SigmaKalon (2008)

PPG – AkzoNobel N.A. Architectural Coatings (2013)

PPG – Comex Mexico (2014)

AkzoNobel – ICI (2008), BASF Industrial Europe (2016)

Axalta – Former Dupont Coatings Business (2013)

Valspar – Wattyl, Ace, Inver, Quest (2010/2013/2013/2015)

Sherwin Williams – Comex (U.S. and Canada only)

BASF - Chemetall (2016)

Sherwin to acquire Valspar (2016) –Pending

Competitive Landscape

Source: Orr and Boss; Company Annual Reports; PPG estimates

PPG is a leader in industry consolidation with

many smaller competitors

13

Source: Kusumgar, Nerlfi, & Growney;

Company Annual Reports; PPG estimates

U.S & Canada

44%

EMEA29%

Asia/Pacific17%

Latin America

10%

Coatings geographic mix

Source: Kusumgar, Nerlfi, & Growney; Company Annual

Reports; PPG estimates

Coatings Industry

Geographic Sales Mix

PPG Coatings

Geographic Net Sales Mix

PPG - Opportunities to expand in Asia and globally

U.S. & Canada

17%

EMEA32%

Asia Pacific43%

Latin

America

8%

14

EMEA includes Europe, Middle East, and Africa

PPG end-use markets

Automotive OEM, Parts,

& Aftermarket, 33%

Construction - New &

Maintenance, 43%

General Industrial, 15%

Aerospace and Marine

(New & Aftermarket), 9%

Approximate % of Total PPG Net Sales

Diverse end-use markets globally

15

0

500

1,000

1,500

2,000

2,500

2007 '08 '09 '10 '11 '12 '13 '14 15 2016

$5

$7

$9

$11

$13

$15

2004 '06 '08 '10 '12 '14 2016

CAGR = 9%

PPG Coatings Net Sales (US$B) (incl. acquisition and currency impacts)

PPG coatings overview

• Stable earnings/cash

• Growth potential

• Low capital intensity

• Technology & service

• Consolidating industry

Balanced Sales Orientation

Aggregate Coatings Segment Earnings

($MM)

Good Growth; Rapid Recovery From Recession

+140%

50%50%

PPG Coatings Net Sales Orientation

OEM Coatings

After-market /

Maintenance

Coatings

Why coatings?

16

#1 Market Position #2 Market Position #3 Market Position #4+ Market Position No Meaningful Presence

PPG global market positions

Source: Orr and Boss; 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

~$56B

General

Industrial

~$36B

Protective

& Marine

~$16B

Refinish /

Collision

~$8B

Auto OEM

~$10B

Packaging

~$3B

Aerospace

~$1B

PPG #1

AkzoNobel #2

Sherwin

Williams#3

Valspar #5

Axalta #7

BASF #8

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

17

Note: RPM #4, Nippon Paint #6

Coatings end-use markets

~40%

~60%

Special-Purpose Coatings:• Aerospace

• Automotive OEM

• Automotive Refinish

• Specialty Coatings & Materials

• Coatings Services

Protective & Marine

12%

Packaging2%

Aerospace1%

Architectural

43%

General

Industrial

28%

Refinish

6%

Auto OEM

8%

Industry End-Market Demand

(~$130B Sales Value)

Source: Kusumgar, Nerlfi, & Growney;

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

18

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

17.9%19.4%

15.4%16.4%

14.0%15.2% 14.7%

20.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

2016 Full Year EBITDA as % of Net Sales

Coatings Peers EBITDA %

19

2016 PPG Net Sales Mix

PPG business segments

Performance Coatings


• Aerospace


• Architectural Coatings Americas & Asia

• Architectural Coatings EMEA (Europe,

Middle-East and Africa)

Industrial Coatings

• Automotive OEM

• Industrial Coatings

• Packaging



Glass

• Fiber Glass

58%

39%

3%

Performance Coatings Industrial Coatings Glass

20

Performance coatings segmentStrategic Business Units:


• Aerospace

• Architectural Americas & Asia Pacific

• Architectural EMEA


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

2007 '08 '09 '10 '11 '12 '13 '14 '15 2016

Acquisition-Related

11.2%12.6%

11.8%12.9% 13.1%

13.9%14.9% 15.3%

0%

4%

8%

12%

16%

2009 '10 '11 '12 '13 '14 '15 2016

Segment Operating Margins

CAGR = 9%

21


2008 '09 '10 '11 '12 '13 '14 '15 2016

US & Canada

49%

EMEA28%

Asia20%

Latin America3%

2007 '08 '09 '10 '11 '12 '13 '14 '15 2016

Net Sales in USD (incl. acquisition and currency impacts)

PPG Refinish Sales 2016

Automotive refinish coatings

CAGR = 2%

CAGR = 13%

22EMEA includes Europe, Middle East, and Africa

Key Industry Trends

• Color complexity

• Emerging regions growth

• Technology shift to waterbase

• Value added programs and training

PPG Global Waterborne Paint Shops

2007 '08 '09 '10 '11 '12 '13 '14 '15 2016

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 distribution

23

• Coatings

• Sealants

• Transparencies

• Chemical Management

• Packaging


0.0

3.0

6.0

9.0

12.0

15.0

Ind. Maint.

Energy

Infrastructure

MarineAftermarket

Marine OEM

2007 '08 '09 '10 '11 '12 '13 '14 '15 2016

U.S. & Canada

EMEA

Asia


PPG PMC Net Sales 2016

PMC Industry Segments ($B)

Protective & Marine Coatings (PMC)

0%

25%

50%

75%

100%

Protective

Coatings

OEM

Aftermarket

PPG Net Sales Mix

Latin America

24Today2012

Protective

Coatings

Aftermarket

OEM


2007 2010 2013 2016

Architectural Coatings (Americas & Asia)

CAGR = 11%

National Retailers

(DIY), 40%

Company

Stores, 40%

Independent

Dealers, 20%

PPG Architectural Coatings

U.S. & Canada Net Sales Mix

0% 25% 50% 75% 100%

PPG U.S. Architectural Net Sales Mixes

Maintenance / Repaint

Non- ResidentialResidential

25%

65% 35%

New Construction

PPG U.S. & Canada

Architectural Store Count

75%

25

100

200

300

400

500

600

700

800

900

1,000

1999 2004 2006 2009 2012 Current


PPG architectural store network has room to grow

26PPG store expansion opportunities without cannibalization

Acquired 2013

Architectural Coatings Latin America

Comex Overview

• Founded in 1952

• ~4,200 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 300 points-of-sale across Central America (incl. Glidden)

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

Network

New store openings

Develop low share

territories

Penetrate key

segments

Purchase

experience

Develop categories

and brand / channel

Concessionaire goal: 1 store per 20k people

Current density: 1 store per 30k people

Consistent and Strong Growth

Concessionaire Network

27

Guatemala

Glidden

StoresHome

Center

Comes

Belize05

Honduras12

Nicaragua12

Panama

18

186

Costa Rica

El Salvador

86

17

26

Central American Architectural Network

Over 300 regional points-of-sale

Represents

points of sale

500

600

700

2013 2014 2015 2016

Architectural Coatings EMEA

Source: Company Estimates

More

Stability

in End-

Market

Maintenance,

80%

New Construction,

20%

End-Use Market Demand

#1 PPG Position

#2 PPG Position

#3 PPG Position

>#3 PPG Position

No PPG Participation

2008 2009 2010 2011 2012 2013 2014 2015 2016

Company-Owned Stores

28


Net Sales in Euro (incl. acquisitions)

Strong Market Positions

#1 or #2 in 80% of Penetrated Markets

#1 PPG Position

#2 PPG Position

#3 PPG Position

>#3 PPG Position

No PPG Participation

Iceland

United Kingdom

PortugalSpain

France

Germany Poland

Romania

Denmark

NorwaySweden

Finland

Estonia

Latvia

LithuaniaBelarus

Ukraine

TurkeyGreece

Austria

BulgariaItaly

11.1% 11.5%

14.2%

15.7%

17.1%18.0% 18.3%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2010 2011 2012 2013 2014 2015 2016

Industrial Coatings Segment

Strategic Businesses• Automotive OEM

• Industrial

• Packaging



$2.0

$3.0

$4.0

$5.0

$6.0

2007 '08 '09 '10 '11 '12 '13 '14 '15 2016

U.S. & Canada

EMEA

AsiaLA

Segment Net Sales Mix

Segment Operating Margins

CAGR = 5%

29


Net Sales (US$B) (incl. acquisition and currency impacts)

All Remaining

Customers

2007 '08 '09 '10 '11 '12 '13 '14 '15 2016

U.S. & Canada

EMEA

Asia

LA

PPG Automotive OEM Coatings

Automotive OEM Coatings

CAGR = 4%

50

55

60

65

70

75

80

85

90

2007 08 '09 '10 '11 '12 '13 '14 '15 2016

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

30


CAGR = 3%


PPG

Akzo Nobel

Valspar

Axalta

Sherwin Williams

BeckersBASF

NipponHenkel

Others60%

U.S. & Canada

EMEA

Asia

LA


2004 '06 '08 '10 '12 '14 2016

PPG Asian Industrial Coatings SBU Net Sales

2007 '08 '09 '10 '11 '12 '13 '14 '15 2016

Industrial Coatings SBU Net Sales Mix

Source: PPG Estimates

Industrial Coatings SBU

CAGR = 5%

CAGR = 13%

Fragmented but Consolidating Industry

31


'07 '08 '09 '10 '11 '12 '13 '14 '15 2016

Packaging Coatings

CAGR = 2%

Beverage

Food

Other

Industry Container Use


Interior

ExteriorEnds

Other

32

BPA-NI technologies

Key Trends

• Beverage can industry remains strong

with growth of +3% globally

• Conversion to BPA-NI technology

continues for food and beverage cans

across Europe and North America


2007 '08 '09 '10 '11 '12 '13 '14 '15 2016

Specialty Coatings & Materials

CAGR = 5%

Key PPG Products / End-Use Markets

33

Silica

TESLIN® substrate

Optical Monomers and Dyes

OLED materials

• 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


R & D Expenditures ($MM)

~3% of sales annually

2015

2014

2013

2012

2016

34

Automotive OEM Compact Process

• “Wet-on-wet” auto coating process

• Customer benefits:

• Lower capital costs (greenfield sites)

• Less energy required (greenfield and

brown sites)

• PPG is the global leader, supplying over 40

customer plants around the world

Defensible Positions

Sustainable Innovation

Cross-industry

synergies

New Product Sales

Innovation Drives Success

Automotive Refinish Waterborne Coatings

• Environmentally-friendly coatings

• Customer benefits:

• Best-in-class color-match accuracy

• Anti-settle properties reduce the need

for onsite mixing

• PPG supplies 2 out of 3 waterborne collision-

repair shops in the US and Canada

Aerospace Aircraft Fuel Efficiencies

• PPG’s array of technologies to reduce

weight and improve airplane fuel economy

• Structurally-loaded cockpit windows

• Basecoat clearcoat paint systems

• Solar heat management coatings

• Generation III lightweight sealants

• PPG technologies can enable over 1,000

lbs. reduction per plane

487

494

499

471

436

$350 $400 $450 $500 $550

$2.88

$3.78

$4.75

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

+19% 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

$5.43

35

$5.82

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


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

36

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/

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/

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

See Appendix for reconciliations.

16.2%

15.0%

11.9%12.2% 12.4%

17.0%

15.0%

13.6%12.7% 12.4%

17.9%

15.4%

13.9% 14.3%

12.9%

17.2%

19.0%

16.3%16.0%

14.5%13.8%

18.4%

19.4%

15.4%

16.4%

14.7%14.0%

20.5%

-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 CoatingsSegments

Total Valspar Total SherwinWilliams

AkzoPaints/Coatings

Total RPM Total Axalta

Full Year EBITDA as % of Net Sales

2012 2013 2014 2015 2016

N/A

Coatings Peers EBITDA %

Consistent coatings industry margin expansion across varying economic conditions

37

PPG Europe, Middle East and Africa

Broad regional footprint to supply future demand growth38

4%

5%

6%

7%

8%

9%

10%

11%

12%

13%

14%

15%

0

100

200

300

400

500

600

2009 '10 '11 '12 '13 '14 '15 2016

EB

IT M

arg

in o

n S

ale

s

Earn

ing

s

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

2009 '10 '11 '12 '13 '14 '15 2016

Sale

s

Architectural Coatings EMEA Other PPG Businesses

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

Record European earnings despite difficult economic conditions

39

PPG Asia Pacific Manufacturing Footprint

Extensive region-wide coverage40

ChinaTianjin

Suzhou

Foshan

Wuhu

Zhangjiagang

Songjiang

Jiading

Kunshan

Wuhan

Nansha

ThailandBangplee

KoreaCheonan

Busan

Ulsan**

X

AustraliaClayton

Villawood

X

MalaysiaPetaling Jaya

New ZealandAuckland

X

TaiwanAlltech

Taoyuan

Chia Yi**

IndonesiaJakarta

JapanNagoya

Vietnam

IndiaSriperumbudur**

Moraiya**

** Joint Venture

X

X

X

XXX

X

X

Philipines

SingaporeSingapore

1,679

2,408 2,431

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2008 2012 2016

Consolidated Net Sales*

151

280

387

$0

$100

$200

$300

$400

$500

2008 2012 2016

Segment Income* 12%

CAGR

Significant profitable growth over time

$MM - USD

5%

CAGR

* Recast for discontinued operations

PPG Asia Pacific financials

41

$MM - USD

Strong and growing Asian presence (excl. Japan)

Many Leading Asia Markets (excl. Japan)

IndustrialAutomotive OEM

General Industrial

Packaging

PerformanceAuto Refinish

Protective & Marine

Aerospace

Architectural

Performance

Industrial

Broad, full coatings business portfolio

PPG Asia Net Sales Mix (2016)Industry Coatings Demand for Asia

Coatings Industry in Asia

Remains Fragmented

Sources: PPG Internal estimates (excludes Japan includes ARCH)

PPG Market

Position

PPG ’10 - ’16

CAGR

Automotive OEM #1 9%

General Industrial #2 6%

Packaging #1 6%

Auto Refinish #1 5%

Aerospace #1 7%

Protective/Marine #4 -11%

Architectural #7 flat

Total Coatings #3 3%

Akzo8%

Nippon 7%

PPG 6%

Asian Paints 6%

Kansai 3%

Valspar 2%

BASF 2%

Jotun 2%

Dulux 2%

Axalta 2%

KCC 1%

Others 58%

64%12%

12%

7%5%

China

India

SoutheastAsiaKorea

Australia

42

Robust cash generation over time while transforming the business portfolio

$1,978

$1,482

$2,393

$1,745

$1,183

$1,455

$1,863

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

YE'10 '11 '12 '13 '14 '15 YE'16

Cash & Short Term Investments

* As originally reported, not adjusted for business divestitures

Millions USD

PPG cash trends

43

$1,000

$1,250

$1,500

$1,750

$2,000

2010 '11 '12 '13 '14 '15 2016

Cash From Operations*

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

Adju

ste

d +

$400

$350

$415

$1,050

Capital Spending

Acquisitions

Dividends

ShareRepurchases

Cash Use Summary:

Grow Business ~60%

Return to Shareholders ~40%

20%

37%17%

26%

Past 10 Years (~$20B)(2007 – 2016)

Approximate 2016 Cash Uses

Millions of USD – As reported, not adjusted for business divestitures

Legacy of consistent and prudent cash deployment

Balanced cash deployment

44

* 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)*

45

17.2%

11.3%

8.5%

14.0%

16.6%

18.3%

16.1% 16.0%17.2% 16.7%

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%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Cap

ital ($

MM

)

Re

turn

on

Cap

ital

Capital Return on Capital

$0

$200

$400

$600

$800

$1,000

$1,200

2005 '07 '09 '11 '13 '15 ‘16

0

100

200

300

400

500

600

700

2017 2018 2019 2020 2021 2022 2025 2027 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

45 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%

0%

2%

4%

6%

8%

10%

12%

14%

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

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

~$515MM

Average

~$750MM

PPG financial hallmarks

46‘16

Last 3

years =

9%

PPG shared services centers

Ohio, USA

Brno, Czech Republic

Kuala Lumpur, Malaysia

Tianjin, China

47

Mexico City, Mexico

www.ppg.com

Additional Materials

and Appendix

Total

PPG

PPG

Coatings

Segments

Total

Sherwin

Williams

Total

Valspar

Total

RPM

Total

Akzo

Akzo

Paints &

Coatings

Axalta

Coatings

Systems

Currency USD USD USD USD USD Euro Euro USD

Sales 14,751 14,270 11,856 4,191 4,814 14,197 9,432 4,074

Segment

Income/Net Income $586 2,356 1,133 353 357 1,054 ** 1,101 ** 48

Unusual or

Infrequent Charges1,251 -- -- 22 -- (17) 15 247 *

Income Taxes 241 -- 463 81 126 394 -- 40

Interest, net 99 -- 154 91 81 114 -- 178

Depreciation &

Amortization462 415 198 98 111 606 274 322

EBITDA, adjusted 2,639 2,771 1,948 645 675 2,151 1,390 835

% of Sales 17.9% 19.4% 16.4% 15.4% 14.0% 15.2% 14.7% 20.5%

EBITDA as % of Sales (excluding specials):

2016 EBITDA Reconciliation

49

Amounts in millions, except percentages, reflects most recent year-end. Compiled from publically available segment disclosures.

*Excludes foreign exchange remeasurement losses & recurring stock-based compensation

**Includes results from associates and joint ventures

Total

PPG

PPG

Coatings

Segments

Total

Sherwin

Williams

Total

Valspar

Total

RPM

Total

Akzo

Akzo

Paints &

Coatings

Axalta

Coatings

Systems


Sales 14,766 14,241 11,339 4,392 4,595 14,859 9,892 4,087

Segment

Income/Net Income 1,338 2,287 1,054 400 239 1,060 ** 1,137 ** 98

Unusual or

Infrequent Charges202 -- -- (22) -- (111) -- 86 *

Income Taxes 424 -- 495 164 225 416 -- 63

Interest, net 86 -- 62 81 69 114 -- 197

Depreciation &

Amortization471 420 199 93 99 626 296 308

EBITDA, adjusted 2,521 2,707 1,810 716 632 2,105 1,433 752

% of Sales 17.1% 19.0% 16.0% 16.3% 13.8% 14.2% 14.5% 18.4%



50


Competitor data not adjusted for business divestitures for comparative purposes



Total

PPG

PPG

Coatings

Segments

Total

Sherwin

Williams

Total

Valspar

Total

RPM

Total

Akzo

Akzo

Paints &

Coatings

Axalta

Coatings

Systems


Sales 15,360 14,250 11,130 4,522 4,376 14,296 9,427 4,362

Segment

Income/Net Income1,133 2,156 866 345 292 600 ** 793 ** 35

Unusual or

Infrequent Charges408 -- 26 41 -- 338 253 188 *

Income Taxes 259 -- 392 146 119 252 -- 2

Interest, net 137 -- 64 65 65 156 -- 217

Depreciation &

Amortization476 401 199 101 90 618 299 309

EBITDA, adjusted 2,413 2,557 1,547 698 566 1,964 1,345 751

% of Sales 15.7% 17.9% 13.9% 15.4% 12.9% 13.7% 14.3% 17.2%



51


Not adjusted for business divestitures for comparative purposes



Total

PPG

PPG

Coatings

Segments

Total

Sherwin

Williams

Total

Valspar

Total

RPM

Total

Akzo

Akzo Paints

& Coatings

Currency USD USD USD USD USD Euro Euro

Sales 14,265 13,198 10,186 4,104 4,079 14,590 9,663

Segment

Income/Net Income950 1,867 753 289 256 661 ** 923 **

Unusual or

Infrequent Charges253 -- 54 40 -- 287 --

Income Taxes 342 -- 333 135 106 111 --

Interest, net 153 -- 59 63 60 200 --

Depreciation &

Amortization452 377 188 88 84 616 300

EBITDA, adjusted 2,150 2,244 1,388 615 505 1,875 1,223

% of Sales 15.1% 17.0% 13.6% 15.0% 12.4% 12.9% 12.7%



52

Amounts in millions, except percentages, reflects most recent year-end.



Total

PPG

PPG

Coatings

Segments

Total

Sherwin

Williams

Total

Valspar

Total

RPM

Total

Akzo

Akzo Paints

& Coatings

Currency USD USD USD USD USD Euro Euro

Sales 12,686 11,654 9,534 4,021 3,777 15,390 9,881

Segment

Income/Net Income663 1,567 631 292 234 (1,670) ** (1,470) **

Unusual or

Infrequent Charges346 -- 4 25 -- 2,520 2,357

Income Taxes 251 -- 276 125 94 172 --

Interest, net 170 -- 40 68 68 267 --

Depreciation &

Amortization399 323 179 94 74 635 317

EBITDA, adjusted 1,829 1,890 1,130 604 470 1,924 1,204

% of Sales 14.4% 16.2% 11.9% 15.0% 12.4% 12.5% 12.2%



53

Amounts in millions, except percentages, reflects most recent year-end.



1st Quarter Reporting Period

Adjusted EPS Reconciliation

Amounts in Millions of USD except EPS54

Continuing Operations Discontinued Operations Total PPG

Net Income EPS Net Income EPS Net Income EPS

First Quarter 2016

Net Income Attributable to PPG as Reported $ 337 $ 1.25 $ 10 $ 0.04 $ 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 $ 341 $ 1.27 $ 10 $ 0.04 $ 351 $ 1.31

First Quarter 2015


Transaction-related costs 3 0.01 3 0.01 6 0.02


First Quarter 2014

Net Income Attributable to PPG as Reported $ 279 $ 0.99 $ 983 $ 3.49 $ 1,262 $ 4.48


Adjusted Net Income Attributable to PPG $ 281 $ 1.00 $ 983 $ 3.49 $ 1,264 $ 4.49

First Quarter 2013

Net Income Attributable to PPG as Reported $ 190 $ 0.64 $ 2,220 $ 7.51 $ 2,410 $ 8.15

Legacy pension costs 13 0.04 -- -- 13 0.04

Environmental costs 8 0.03 8 0.03


U.S. tax law change enacted in 2013 (10) (0.03) -- -- (10) (0.03)

Adjusted Net Income Attributable to PPG $ 206 $ 0.69 $ 2,220 $ 7.51 $ 2,426 $ 8.20

First Quarter 2012

Net Income/(Loss) Attributable to PPG as Reported $ (43) $ (0.14) $ 56 $ 0.18 $ 13 $ 0.04

Business restructuring 137 0.45 26 0.08 163 0.53

Environmental reserves 99 0.32 -- -- 99 0.32





Second Quarter 2016



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


Second Quarter 2015



Business restructuring charge 106 0.39 -- -- 106 0.39


Second Quarter 2014

Net Income Attributable to PPG as Reported $ 387 $ 1.38 $ (1) -- $ 386 $ 1.38

Pension settlement charge 3 0.01 -- -- 3 0.01


Adjusted Net Income/(Loss) Attributable to PPG $ 392 $ 1.40 $ (1) -- $ 391 $ 1.40

Second Quarter 2013




Second Quarter 2012


Business separation costs -- -- 3 0.01 3 0.01


2nd Quarter Reporting Period

Amounts in Millions of USD except EPS


55




Third Quarter 2016

Net (Loss)/Income Attributable to PPG as Reported $ (201) $ (0.75) $ 17 $ 0.06 $ (184) $ (0.69)

Pension settlement charges 616 2.31 -- -- 616 2.31


Third Quarter 2015


Transaction-related costs 1 -- -- -- 1 --



Third Quarter 2014




Legacy environmental reserves 86 0.30 -- -- 86 0.30

Gain on asset sales (59) (0.21) (14) (0.05) (73) (0.26)


Third Quarter 2013


Transaction-related costs 3 0.01 1 -- 4 0.01

Legacy environmental reserves 56 0.19 -- -- 56 0.19

Business restructuring 73 0.25 -- -- 73 0.25


Third Quarter 2012


Business separation costs -- -- 9 0.03 9 0.03


56

3rd Quarter Reporting Period


57

Continued Operations Discontinued Operations Total PPG


Fourth Quarter 2016


Business restructuring charge 146 0.55 - - 146 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

(33) (0.13)

- -

(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


Fourth Quarter 2015


Transaction-related costs 11 0.04 - - 11 0.04

Equity affiliate debt refinancing charge 7 0.03 - - 7 0.03


Fourth Quarter 2014


Debt refinancing charge 200 0.72 - - 200 0.72


Favorable foreign tax ruling (29) (0.11) - - (29) (0.11)


Fourth Quarter 2013




Fourth Quarter 2012




4th Quarter Reporting Period



PPG Adjusted Earnings Per Share Trend Reconciliation


Adjusted EPS from Continuing Operations

Y-O-Y Change in Adjusted EPS from Continuing

Operations

Period 2012 2013 2014 2015 2016 2013 vs. 2012 2014 vs. 2013 2015 vs. 2014 2016 vs. 2015

1Q $ 0.64 $ 0.69 $ 1.00 $ 1.13 $ 1.27 $ 0.05 $ 0.31 $ 0.13 $ 0.14

2Q 0.84 1.14 1.40 1.60 1.78 0.30 0.26 0.20 0.18

3Q 0.83 1.12 1.35 1.54 1.56 0.28 0.27 0.16 0.02

4Q 0.57 0.81 0.99 1.16 1.19 0.25 0.17 0.17 0.03

Full Year* $ 2.88 $ 3.78 $ 4.75 $ 5.43 5.82 $ 0.90 $ 0.97 $ 0.68 $ 0.39

Year over year percentage increase in EPS +31% +26% +14% +7%

*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.

58

FULL YEAR 2016 2015 2014 2013 2012 2011

Net Earnings as Reported $564 $1,405 $1,133 $1,034 $941 $1,095

Adjustments:

Debt refinancing charge - - 200 - - -

Business restructuring charges 146 106 - 73 163 -

Equity affiliate debt refinancing charge - 7 - - - -

Transaction-related costs 6 32 42 28 27 -

Environmental remediation charges 51 - 86 64 99 -

Pension settlement charges 616 5 - 13 - -

Tax rulings/law changes - - (24) (10) - -

Gain on asset dispositions - - (73) - - -

Loss on divestiture of European fiber glass business 44 - - - - -

Net gain on disposals of ownership interest in business

affiliates

(55) - - - - -

Net tax effect of asbestos settlement funding 151 - - - - -

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

Asset write-downs 20 - - - - -

Total Net Adjustments $984 $150 $231 $168 $289 -

Adjusted Net Earnings $1,548 $1,555 $1,364 $1,202 $1,230 $1,095

Adjusted Net Earnings

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

59

FULL YEAR 2010 2009 2008 2007 2006 2005

Net Earnings as Reported $769 $336 $538 $834 $711 $596

Adjustments:

Business restructuring charge - 141 110 - 23 -

Pension settlement charge 85 - - - - -

Divestiture-related costs - - 9 30 - -

Acquisition-related costs - - 100 4 - -

Environmental Charge - - - - 106 -

Legal Settlement - - - - - 117

Debt Refinancing - - - - - 12

Impairments/Other - - - - 2 38

Total Net Adjustments $85 $141 $219 $34 $131 $167

Adjusted Net Earnings $854 $477 $757 $868 $842 $763

Adjusted Net Earnings

60

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

FULL YEAR2016 2015 2014 2013 2012

Adjusted Net Earnings $1,548 $1,555 $1,364 $1,202 $1,230

Net Interest Expense (after-tax) 94 95 143 149 157

Adjusted Net Earnings + Net Interest

Expense

$1,642 $1,650 $1,507 $1,351 $1,387

Capital (Average Debt & Average Equity)

as Reported

$9,334 $9,515 $9,200 $8,212 $7,371

Net Adjustment (see Net Earnings

Reconciliations)

984 150 231 168 289

Adjusted Capital** $9,841 $9,603 $9,383 $8,395 $7,592

Adjusted Return on Capital 16.7% 17.2% 16.0% 16.1% 18.3%

Adjusted Return on Capital

61

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 YEAR2011 2010 2009 2008 2007

Adjusted Net Earnings $1,095 $854 $477 $757 $868

Net Interest Expense (after-tax) 158 140 135 175 66

Adjusted Net Earnings + Net Interest

Expense

$1,253 $994 $612 $932 $934

Capital (Average Debt & Average Equity)

as Reported

$7,526 $6,685 $7,088 $8,053 $5,403

Net Adjustment (see Net Earnings

Reconciliations)

- 85 141 219 34

Adjusted Capital** $7,526 $6,753 $7,237 $8,272 $5,437

Adjusted Return on Capital 16.6% 14.0% 8.5% 11.3% 17.2%

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

62

2016 Quarterly Financial Results by Reportable SegmentPPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES (Continuing Operations)

BUSINESS SEGMENT INFORMATION (unaudited)

Q1 Q2 Q3 Q4 Full Year

2016 2016 2016 2016 2016

Net sales

Performance Coatings $ 2,039 $ 2,338 $ 2,223 $ 1,980 $ 8,580

Industrial Coatings 1,372 1,444 1,437 1,437 5,690

Glass 133 139 129 80 481

TOTAL $ 3,544 $ 3,921 $ 3,789 $ 3,497 $ 14,751

Segment income

Performance Coatings $ 279 $ 428 $ 368 $ 239 $ 1,314

Industrial Coatings 265 292 249 236 1,042

Glass 14 15 12 12 53

TOTAL 558 735 629 487 2,409

Items not allocated to segments

Legacy items (11) (11) (4) (7) (33)

Environmental remediation charge - - - (82) (82)

Transaction-related costs (2) (7) - - (9)

Business restructuring charge - - - (197) (197)

Pension settlement charges - - (968) - (968)

Loss on European fiber glass business - - - (42) (42)

Net gain on disposals of ownership interests in business affiliates - 20 - 49 69

Asset write-downs (4) (10) - - (14)

Interest expense, net of interest income (24) (24) (28) (23) (99)

Other corporate expense (61) (59) (42) (45) (207)

INCOME BEFORE INCOME TAXES $ 456 $ 644 $ (413) $ 140 $ 827

Amounts in Millions of USD63

www.ppg.com

Thank you for your interest in PPG

Industries, Inc.

Contact Information:

Investors:

Scott Minder

(412) 434-3466

64

66

Notes

67

Notes

Documents

PPG Investor Overview/media/Files/P/PPG-IR/... · “estimate,” “project,” “outlook,” “forecast” and other expressions that indicate future events and trends. Any forward-looking