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PPG Investor Overview
March, 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 ongoing impacts of the 2017 natural disasters, 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 achieve selling price increases, the
ability to recover margins, 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 2017 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 2017 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
PPG: Our employees protect and beautify the world
Ranked among the “World’s Most Admired Companies” in its industry by
Fortune Magazine in 2018
*From Continuing Operations
A global maker
of paints,
coatings,
and specialty
materials, with
full-year net
sales of $14.8
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) ~$14.8B (2017)
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
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
$5.67
30
$5.87
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%
TOA1%
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
Ad
juste
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
$800
Capital Spending
Acquisitions
Dividends
Share Repurchases
* Adjusted to exclude certain non-recurring charges, see appendix for reconciliation. All years as originally reported,
not adjusted for business divestitures.
ROC growth demonstrates successful acquisition integration
PPG return on capital (adjusted)*
40
11.3%
8.5%
14.0%
16.6%
18.3%
16.1% 16.0%
17.2%16.7% 16.4%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Cap
ital ($
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
www.ppg.com
Additional Materials
and Appendix
45
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 $ 328 $ 1.27 $ 6 $ 0.02 $ 334 $ 1.29
Transaction-related costs 3 0.01 -- -- 3 0.01
Pension settlement charge 14 0.05 -- -- 14 0.01
Adjusted Net Income Attributable to PPG $ 345 $ 1.33 $ 6 $ 0.02 $ 351 $ 1.35
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
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 $ 504 $ 1.95 $ 2 -- $ 506 $ 1.95
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 $ 472 $ 1.83 $ 2 -- $ 474 $ 1.83
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
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$ in millions, except EPS
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 $ 392 $ 1.52 $ 217 $ 0.84 $ 609 $ 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
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3rd Quarter Reporting Period
Adjusted EPS Reconciliation
$ in millions, except EPS
48
Continued Operations Discontinued Operations Total PPG
Net Income EPS Net Income EPS Net Income EPSFourth Quarter 2017
Net Income Attributable to PPG as Reported $ 147 $ 0.58 $ -- $ -- $ 147 $ 0.58
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 $ 304 $ 1.19 $ -- $ -- $ 304 $ 1.19
Fourth Quarter 2016
Net Income Attributable to PPG as Reported $ 91 $ 0.34 $ 253 $ 0.96 $ 344 $ 1.30
Business restructuring charge 144 0.55 2 -- 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 (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 $ 306 $ 1.16 $ 274 $ 1.04 $ 580 $ 2.20
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
PPG Adjusted Earnings Per Share Trend Reconciliation
Adjusted EPS from Continuing Operations
Period 2014 2015 2016 2017
1Q $0.98 $1.10 $1.23 $1.33
2Q 1.40 1.58 1.73 1.83
3Q 1.33 1.53 1.52 1.52
4Q 0.95 1.14 1.16 1.19
Full Year* $4.67 $5.33 $5.67 $5.87
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.
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FULL YEAR 2017 2016 2015 2014 2013
Net Earnings as Reported $1,371 $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 (18) - - - -
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 $1,513 $1,548 $1,555 $1,364 $1,202
Adjusted Net Earnings
Amounts in Millions of USD – Not adjusted for business divestitures for comparative purposes
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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
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Amounts in Millions of USD – Not adjusted for business divestitures for comparative purposes
FULL YEAR2017 2016 2015 2014 2013
Adjusted Net Earnings $1,513 $1,548 $1,555 $1,364 $1,202
Net Interest Expense (after-tax) 80 94 95 143 149
Adjusted Net Earnings + Net Interest
Expense
$1,593 $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
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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 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
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2017 Quarterly Financial Results by Reportable Segment
PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES (Continuing Operations)
BUSINESS SEGMENT INFORMATION (unaudited)
Q1 Q2 Q3 Q4 Full Year
2017 2017 2017 2017 2017
Net sales
Performance Coatings $ 2,017 $ 2,301 $ 2,290 $ 2,124 $ 8,732
Industrial Coatings 1,469 1,505 1,486 1,558 6,018
TOTAL $ 3,486 $ 3,806 $ 3,776 $ 3,682 $ 14,750
Segment income
Performance Coatings $ 285 $ 413 $ 365 $ 260 $ 1,323
Industrial Coatings 273 264 223 212 972
TOTAL 558 677 588 472 2,295
Items not allocated to segments
Legacy items (8) 5 - 2 (1)
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 (63) (27) (45) (46) (181)
INCOME BEFORE INCOME TAXES $ 440 $ 671 $ 521 $ 376 $ 2,008
Amounts in Millions of USD
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www.ppg.com
Thank you for your interest in PPG
Industries, Inc.
Contact Information:
Investors:
John Bruno
(412) 434-3466
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