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PPG Investor Overview

PPG Investor Overviewinvestor.ppg.com/.../P/PPG-IR/documents/ppg-investor-overview-v2.pdf · PPG Investor Overview. 2 Notes. Forward looking statement The Private Securities Litigation

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  • 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 Companys 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

    Companys 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, including litigation that could result if the proposed asbestos settlement does

    not become effective. 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 PPGs 2015 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 PPGs 2015 Form 10-K and similar risks, any of which could have a material adverse effect on the

    Companys 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

    2015

    5

    *From Continuing Operations recast to reflect sale of Flat Glass

  • 2015 key achievements

    Strategic Portfolio Actions

    Successful integration of Comex acquisition

    6 bolt-on acquisitions totaled more than $400 million

    (purchase price)

    o Spanned various coatings end-uses and geographies

    Excellent Financial Performance

    Record adjusted EPS up 14% versus previous year*

    Record local-currency earnings in each region

    Cash and Cash Deployment

    Record cash generation from operations ~$1.8B

    $1.5B of cash and short-term investments at year-end

    Quarterly dividend increase 44th consecutive year

    Deployed $750MM for share repurchases

    6 * See appendix for adjusted EPS trend reconciliation

  • 2013

    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)

    2014

    Sale of PPGs majority interest in Transitions Optical joint venture ($0.8 billion annual sales)

    Acquisition of Comex Mexico ($1.0 billion annual sales)

    2015

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

    REVOCOAT, IVC Industrial, LeJoint Franais, Cuming Microwave, Consorcio LatinAmericano, Chemfil Canada

    Accelerating the portfolio transformation

    Significant increase in coatings via strategic portfolio actions

    7

  • Our portfolio transformation

    2005 $10.2B 2015 $14.8B

    55%

    23%

    22%

    96%

    4%

    Net Sales*

    Paint and Coatings

    Chemicals

    Glass

    *From Continuing Operations; 2005 as originally reported; 2015 recast to reflect sale of Flat Glass

    Paints and Coatings = $14.2BPaints and Coatings = $5.6B

    Significant transactions accelerate portfolio optimizationAcquisitions: SigmaKalon (2008), AkzoNobel N.A. Architectural (2013), Comex (2014)

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

    8

  • 2005 - 2008

    Acquired From Business

    Intl 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

    Acquired From Business

    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

    Acquired From Business

    Bairun (Asia) Packaging

    Dyrup Architectural

    Ducol (S. Africa) Refinish

    Colpisa (Columbia) Auto OEM/Refinish

    Spraylat Industrial

    Akzo Nobel N. America

    Architectural

    Deft Aerospace

    Homax Architectural

    Comex (Mexico) Architectural

    Le Joint Francais Aero/Auto OEM

    Revocoat Auto OEM

    Consorcio

    Latinamericano

    Architectural

    Cuming Microwave Aerospace

    IVC Industrial

    MetoKote Coatings Services

    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

    2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

    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

  • 55%

    96%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    2005 2007 2010 2015

    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 = 11%

    *2005-2010 as originally reported, not adjusted for divestitures; 2015 Sales from Continuing Operations, recast to reflect sale of Flat Glass.

    **As originally reported, not adjusted for divestitures

    ~$10.2B ~$14.8B

    Strengthened business portfolio

    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 2015

    Ind

    ex

    11

  • 45%

    29%

    16%

    10%

    2015 - $14.8B

    U.S. & Canada

    EMEA

    Asia/Pacific

    Latin America

    PPGs 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; 2015 Sales from Continuing Operations, recast to reflect sale of Flat Glass.

  • 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) - Pending

    Axalta Former Dupont Coatings Business (2013)

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

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

    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

    Other

  • 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, 30%

    Construction - New &

    Maintenance, 45%

    General Industrial, 15%

    Aerospace and Marine

    (New & Aftermarket), 10%

    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 2015

    $5

    $7

    $9

    $11

    $13

    $15

    2004 '06 '08 '10 '12 2015

    CAGR = 9%

    PPG Coatings Net Sales (US$B) Includes Acquisitions

    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

    +133%

    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 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

    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

    17.1%

    19.0%

    16.3% 16.0%

    13.8% 14.2% 14.4%

    18.4%

    0.0%

    2.0%

    4.0%

    6.0%

    8.0%

    10.0%

    12.0%

    14.0%

    16.0%

    18.0%

    20.0%

    22.0%

    2015 Full Year EBITDA as % of Net Sales

    Coatings Peers EBITDA %

    19

  • 2015 PPG Net Sales* Mix

    PPG business segments

    Performance Coatings

    Automotive Refinish

    Aerospace

    Protective & Marine

    Architectural Coatings Americas & Asia

    Architectural Coatings EMEA (Europe,

    Middle-East and Africa)

    Industrial Coatings

    Automotive OEM

    Industrial Coatings

    Packaging

    Specialty Coatings & Materials

    Glass

    Fiber Glass

    59%

    37%

    4%

    Performance Coatings Industrial Coatings Glass

    20

    *2015 Sales from Continuing Operations, recast to reflect sale of Flat Glass.

  • Performance coatings segmentStrategic Business Units:

    Automotive Refinish

    Aerospace

    Architectural Americas & Asia Pacific

    Architectural EMEA

    Protective & Marine

    Net Sales (US$B) Incl. Acquisitions

    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

    2006 2008 2010 2012 2014 2015

    Acquisition-Related

    11.2%12.6%

    11.8%12.9% 13.1%

    13.9%14.9%

    0%

    5%

    10%

    15%

    2009 2010 2011 2012 2013 2014 2015

    Segment Operating Margins

    CAGR = 11%

    21

    EMEA includes Europe, Middle East, and Africa

  • US & Canada

    47%

    EMEA29%

    Asia20%

    Latin America4%

    2007 2008 2009 2010 2011 2012 2013 2014 2015

    Net Sales in USD (Incl. Acquisitions)

    PPG Refinish Sales 2015

    2008 2009 2010 2011 2012 2013 2014 2015

    PPG Global Waterborne Paint Shops

    Automotive refinish coatings

    Key Industry Trends:

    Emerging regions growth

    Technology shift to waterbase

    Customer service requirement

    Marketplace approach

    CAGR = 2%

    CAGR = 14%

    22EMEA includes Europe, Middle East, and Africa

  • '07 '08 '09 '10 '11 '12 '13 '14 2015

    Recent Acquisitions

    Aerospace

    Coatings

    Sealants

    Transparencies

    CAGR = 5%

    50%50%

    Aerospace Net Sales Mix

    Aftermarket OEM

    Aerospace Products

    Deft Coatings

    Waterborne / chrome free

    Military market

    Cuming Microwave

    Radar absorbing products

    Advanced military applications

    Sealants Europe (Le Joint Francais)

    Commercial aviation focus

    Position in continental Europe

    23

    Net Sales in USD (Incl. Acquisitions)

  • '07 '08 '09 '10 '11 '12 '13 '14 2015

    U.S. & Canada

    EMEA

    Asia

    EMEA includes Europe, Middle East, and Africa

    PPG PMC Net Sales 2015

    PMC Industry Segments ($B)

    Protective & Marine Coatings (PMC)

    0%

    25%

    50%

    75%

    100%

    Protective

    Coatings

    OEM

    Aftermarket

    PPG Net Sales Mix

    Latin America

    0.0

    3.0

    6.0

    9.0

    12.0

    15.0

    Ind. Maint.

    Energy

    Infrastructure

    MarineAftermarket

    Marine OEM

    24Today2012

    Protective

    Coatings

    Aftermarket

    OEM

    Net Sales in USD (Incl. Acquisitions)

  • 2006 2009 2012 2015

    Architectural Coatings (Americas & Asia)

    CAGR = 13%

    National Retailers

    (DIY), 35%

    Company

    Stores, 50%

    Independent

    Dealers, 15%

    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

    100

    200

    300

    400

    500

    600

    700

    800

    900

    1,000

    1999 2004 2006 2009 2012 Current

    PPG U.S. & Canada

    Architectural Store Count

    75%

    25

    Net Sales in USD (Incl. Acquisitions)

  • PPG architectural store network has room to grow

    26PPG store expansion opportunities without cannibalization

  • Comex business overview

    Founded in 1952

    Architectural, Industrial and other

    Specialty Coatings and Materials

    Latin American Based Sales in Mexico and other Central American countries

    ~4,000 independently owned/operated concessionaires; regional retailers

    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 GrowthComex Plant

    Comex

    Distribution

    8 Manufacturing Plants

    6 Distribution Centers

    3,900 Employees

    Concessionaire Network Operational Network

    27

  • Comex financial targets

    28

    Comex acquisition is exceeding expectations and enabling growth

    Cost/operational earnings

    synergies exceeding

    targets

    (increased June 2015)

    Incremental revenue

    synergies from

    PPG legacy products

    (announced June 2015)

    Central America regional

    revenue synergy target (5

    year) (announced June

    2015)

    Target

    $45-50MM

    $40-50MM

    $60-70MM

    Status

    On-track

    Glidden Stores

    Home Center

    Comes Stores

    Belize06

    Honduras12

    Nicaragua10

    Panama

    18

    186

    Costa Rica

    El Salvador

    Guatemala

    43

    17

    25

    PPGs Central American Architectural Network

    Nearly 300 regional points of sale

    Represents

    points of sale

  • Architectural Coatings EMEA

    Source: Company Estimates

    More

    Stability

    in End-

    Market

    Maintenance,

    80%

    New Construction,

    20%

    End-Use Market Demand

    500

    600

    700

    2013 2014 2015

    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

    2008 2009 2010 2011 2012 2013 2014 2015

    Company-Owned Stores

    29

    EMEA includes Europe, Middle East, and Africa

    Net Sales in Euro (Incl. Acquisitions)

  • Industrial Coatings Segment

    Strategic Businesses Automotive OEM

    Industrial

    Packaging

    Specialty Coatings & Materials

    $2.0

    $3.0

    $4.0

    $5.0

    $6.0

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

    Net Sales (US$B) Incl.

    Acquisitions

    U.S. & Canada

    EMEA

    AsiaLA

    Segment Net Sales Mix

    Segment Results

    CAGR = 6%

    US$MM

    0%

    2%

    4%

    6%

    8%

    10%

    12%

    14%

    16%

    18%

    20%

    $0

    $1,000

    $2,000

    $3,000

    $4,000

    $5,000

    $6,000

    2010 2011 2012 2013 2014 2015

    EB

    IT M

    arg

    in

    Sa

    les

    Sales Margin30

    EMEA includes Europe, Middle East, and Africa

  • 2006 '07 '08 '09 '10 '11 '12 '13 '14 2015

    U.S. & Canada

    EMEA

    Asia

    LA

    PPG Automotive OEM Coatings

    Automotive OEM Coatings

    CAGR = 5%

    50

    55

    60

    65

    70

    75

    80

    85

    90

    2008 '09 '10 '11 '12 '13 '14 2015

    Global Auto OEM Production

    MM Units

    All Remaining

    Customers

    PPG Auto OEM Coatings

    Customer Mix

    Top 7 PPG

    Auto OEM

    Customers

    U.S.

    Based

    Non-U.S.

    Based

    +1.5%

    31

    EMEA includes Europe, Middle East, and Africa

    Net Sales in USD (Incl. Acquisitions)

  • U.S. & Canada

    EMEA

    Asia

    LA

    EMEA includes Europe, Middle East, and Africa

    2004 '06 '08 '10 '12 2015

    PPG Asian Industrial Coatings SBU Net Sales

    '07 '08 '09 '10 '11 '12 '13 '14 2015

    Industrial Coatings SBU Net Sales Mix

    Source: PPG Estimates

    Industrial Coatings SBU

    CAGR = 5%

    CAGR = 14%

    PPG

    Akzo Nobel

    Valspar

    Axalta

    Sherwin Williams

    BeckersBASF

    NipponHenkel

    Others60%

    Fragmented but Consolidating Industry

    32

    Net Sales in USD (Incl. Acquisitions)

  • 2006 '07 '08 '09 '10 '11 '12 '13 '14 2015

    Annual Beverage Can Consumption

    Packaging Coatings

    CAGR = 3%

    Beverage

    Food

    Other

    Industry Container Use

    Source: PPG Estimates

    Interior

    ExteriorEnds

    Other

    400

    250

    100

    40

    MM/

    Day

    33

    Net Sales in USD (Incl. Acquisitions)

  • 2008 '09 '10 '11 '12 '13 '14 2015

    Specialty Coatings & Materials

    CAGR = 5%

    Silica Tires and battery separators, various industrial uses

    Teslin Printing materials, RFID, various industrial and consumer uses

    OLED Electronics

    Monomers and Dyes Optical

    Key PPG Products / End-Use Markets

    HVA Tire

    (High-Value-Added)

    high silica content tread

    RFID PressureSensitive Adhesive

    34

    Net Sales in USD (Incl. Acquisitions)

  • R & D Expenditures ($MM)

    ~3% of sales annually

    2015

    2014

    2013

    2012

    2011

    2010

    $505

    $509

    $479

    $444

    $443

    $403

    $0 $200 $400 $600

    35

    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

    PPGs 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

  • 36

    Earnings and Volume Growth Trends

    PPG Regional Earnings PPG Coatings Volume Trend*(Indexed to 2008)

    0

    200

    400

    600

    800

    1,000

    1,200

    1,400

    U.S. and Canada Europe Emerging Regions

    2010 2011 2012 2013 2014 2015

    -2%

    -16%

    26%

    -25%

    -20%

    -15%

    -10%

    -5%

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    U.S. & Canada Europe Emerging Regions

    Strong segment earnings; significant volume leverage remaining

    New Regional

    Record in 2015

    (excl. currency)

    * As originally reported, not adjusted for segment reporting changes.

  • $2.88

    $3.78

    $4.78

    $2.00

    $2.50

    $3.00

    $3.50

    $4.00

    $4.50

    $5.00

    $5.50

    $6.00

    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

    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

    37

  • 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

    38

    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% 11.9%12.4%

    17.0%

    15.0%

    13.6%

    12.6% 12.4%

    17.9%

    15.4%

    13.9%13.9%

    12.9%

    17.2%

    19.0%

    16.3% 16.0%

    14.4%13.8%

    18.4%

    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 CoatingsSegments

    Total Valspar Total SherwinWilliams

    AkzoPaints/Coatings

    Total RPM Total Axalta

    Full Year EBITDA as % of Net Sales

    2012 2013 2014 2015

    N/A

    Coatings Peers EBITDA %

    Consistent coatings industry margin expansion across varying economic conditions

    39

  • 110%

    114%

    130%

    140% 140%

    113%

    123%

    131%

    143%

    146%

    122%125%

    127%

    140% 136%

    101%

    111%

    120%

    128%

    135%

    100%

    105%

    110%

    115%

    120%

    125%

    130%

    135%

    140%

    145%

    150%

    2010 2011 2012 2013 2014 2015

    PPG Coatings Sherwin Valspar RPM

    Coatings companies net sales growth

    Net Sales CAGR 3-Year 5-Year

    PPG Coatings 6.9% 6.9%

    Sherwin-Williams 5.9% 7.8%

    Valspar 3.0% 6.4%

    RPM 6.8% 6.1%

    40

  • 106%

    122%

    145%

    165%

    175%

    104%

    122%

    150%

    167%

    198%

    111%

    131%

    133%

    151%

    165%

    103%

    116%

    125%

    144%

    154%

    100%

    110%

    120%

    130%

    140%

    150%

    160%

    170%

    180%

    190%

    200%

    2010 2011 2012 2013 2014 2015

    PPG Coatings Sherwin Valspar RPM

    Coatings companies EBITDA growth

    EBITDA CAGR 3-Year 5-Year

    PPG Coatings 12.7% 11.8%

    Sherwin-Williams 17.0% 14.3%

    Valspar 5.8% 9.2%

    RPM 10.4% 9.4%

    41

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

    See Appendix for reconciliations.

  • 0.00%

    1.00%

    2.00%

    3.00%

    4.00%

    5.00%

    2005 '06 '07 '08 '09 '10 '11 '12 '13 '14 2015

    % of Prior Year Sales

    Year-Over-Year Aggregate PPG Pricing*

    Strong pricing discipline continues

    As originally reported, not adjusted for segment reporting changes

    Higher pricing to counter global inflation

    42* as originally reported, not adjusted for divestitures

  • PPG Europe, Middle East and Africa

    Broad regional footprint to supply future demand growth43

  • 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 2015

    Sale

    s

    Architectural Coatings EMEA Other PPG Businesses

    PPG Net Sales Mix (MM )

    4%

    5%

    6%

    7%

    8%

    9%

    10%

    11%

    12%

    13%

    0

    100

    200

    300

    400

    500

    2009 '10 '11 '12 '13 '14 2015

    EB

    IT M

    arg

    in o

    n S

    ale

    s

    Earn

    ing

    s

    Earnings (MM )

    Record European earnings despite difficult economic conditions the past several years

    44

  • PPG Asia Pacific Manufacturing Footprint

    ChinaTianjin

    Tianjin

    Suzhou

    Suzhou

    Suzhou

    Foshan

    Wuhu

    Zhangjiagang

    Songjiang

    Jiading

    Kunshan

    Wuhan

    Nansha

    Kunshan**

    ThailandBangplee

    KoreaCheonan

    Busan

    Ulsan**

    AustraliaClayton

    Adelaide

    Villawood

    MalaysiaPetaling Jaya

    New ZealandAuckland

    TaiwanAlltech

    Taoyuan

    Chia Yi**

    IndonesiaJakarta

    JapanNagoya

    Vietnam

    IndiaFaaber**

    Sriperumbudur**

    Moraiya**

    ** Joint Venture

    Philipines

    Extensive region-wide coverage45

  • 1,689

    2,297 2,434

    $0

    $500

    $1,000

    $1,500

    $2,000

    $2,500

    $3,000

    2008 2011 2015

    Consolidated Net Sales*

    149

    281

    366

    $0

    $100

    $200

    $300

    $400

    2008 2011 2015

    Segment Income* 14% CAGR

    Significant profitable growth over time

    $MM - USD

    5%

    CAGR

    * Restated for discontinued operations

    PPG Asia Pacific financials

    46

  • Strong and growing Asian presence (excl. Japan)

    Many Leading Asia Market (excl. Japan)

    Industrial Automotive OEM

    General Industrial

    Packaging

    PerformanceAuto Refinish

    Protective & Marine

    Aerospace

    Architectural

    Performance

    Industrial

    Broad, full coatings business portfolio

    PPG Asia Net Sales Mix (2015)Industry Coatings Demand for Asia

    Coatings Industry in Asia

    Remains Fragmented

    Sources: PPG Internal estimates (excludes Japan includes ARCH)

    PPG Market

    Position

    PPG 09 - 15

    CAGR

    Automotive OEM #1 12%

    General Industrial #2 7%

    Packaging #1 8%

    Auto Refinish #1 6%

    Aerospace #1 7%

    Protective/Marine #4 -4%

    Architectural #7 1%

    Total Coatings #3 5%

    Akzo9% Nippon 7%

    PPG 6%

    Asian Paints 5%

    Kansai 3%

    Valspar 3%

    Jotun 2%BASF 2%

    Dulux 2%

    Axalta 2%

    Others 59%

    63%12%

    13%

    7%5%

    China

    India

    SoutheastAsiaKorea

    Australia

    47

  • $1,000

    $1,250

    $1,500

    $1,750

    $2,000

    2009 '10 '11 '12 '13 '14 2015

    Cash From Operations*

    Robust cash generation over time; significant business portfolio transformation

    $1,978

    $1,482

    $2,393

    $1,745

    $1,183

    $1,455

    $0

    $500

    $1,000

    $1,500

    $2,000

    $2,500

    $3,000

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

    Cash & Short Term Investments

    *As originally reported, not adjusted for business divestitures

    Millions USD

    PPG cash trends

    48

  • $475

    $400

    $385

    $750

    Capital Spending

    Acquisitions

    Dividends

    ShareRepurchases

    Cash Use Summary:

    Grow Business ~60%

    Return to Shareholders ~40%

    20%

    39%

    18%

    23%

    Past 10 Years (~$20B)(2006 2015)

    Approximate 2015 Cash Uses

    Millions of USD As reported, not adjusted for business divestitures

    Legacy of consistent and prudent cash deployment

    Balanced cash deployment

    49

  • 16.9%

    19.1%

    17.2%

    11.3%

    8.5%

    14.0%

    16.6%

    18.3%

    16.1% 16.0%17.2%

    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%

    2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

    Cap

    ital ($

    MM

    )

    Re

    turn

    on

    Cap

    ital

    Capital Return on Capital

    * 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)*

    50

  • $0

    $200

    $400

    $600

    $800

    $1,000

    2005 '07 '09 '11 '13 2015

    0

    100

    200

    300

    400

    500

    600

    700

    2016201720182019202020212022 20272029203820402044

    USD Notes

    EUR Notes

    0.00

    0.20

    0.40

    0.60

    0.80

    1.00

    1.20

    1.40

    1.60

    '78 '81 '84 '87 '90 '93 '96 '99 '02 '05 '08 '11 '14

    44 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 '15

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

    divestitures)

    Last 6 Year

    Average =

    ~3.0%

    PPG Share Repurchases

    US$MM

    Average

    ~$467MM

    Average

    ~$690MM

    PPG financial hallmarks

    5115

  • PPG shared services centers

    Ohio, USA

    Brno, Czech Republic

    Kuala Lumpur, Malaysia

    Tianjin, China

    52

    Mexico City, Mexico

  • www.ppg.com

    Additional Materials

    and Appendix

  • 2015* 2014* 2013* 2012* 2011* 2010*

    Net Earnings as Reported $1,405 $1,133 $1,034 $941 $1,095 $769

    Adjustments:

    Debt refinancing charge - 200 - - - -

    Business restructuring charge 106 - 73 163 - -

    Equity affiliate debt refinancing

    charge

    7 - - - - -

    Transaction-related costs 32 42 28 27 - -

    Environmental remediation charge - 86 64 99 - -

    Legacy pension settlement loss 5 - 13 - - 85

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

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

    Total Net Adjustments $150 $231 $168 $289 - $85

    Adjusted Net Earnings $1,555 $1,364 $1,202 $1,230 $1,095 $854

    Adjusted Net Earnings

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

    Full Year

    54

  • FULL YEAR 2009 2008 2007 2006 2005

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

    Adjustments:

    Business restructuring charge 141 110 - 23 -

    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 $141 $219 $34 $131 $167

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

    Adjusted Net Earnings

    Amounts in Millions of USD Not recast to reflect discontinued operations presentation

    55

  • 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 14,766 14,241 11,339 4,392 4,595 14,859 9,962 4,087

    Segment

    Income/Net

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

    Unusual

    Charges

    202 -- -- (22) -- (111) 0 86*

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

    Interest 86 -- 62 81 69 114 -- 197

    Depreciation &

    Amortization

    471 420 199 93 99 626 296 308

    EBITDA 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% 14.4% 18.4%

    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

    EBITDA as % of Sales (excluding specials):

    2015 EBITDA Reconciliation

    56

  • Total

    PPG

    PPG

    Coatings

    Segments

    Total

    Sherwin

    Williams

    Total

    Valspar

    Total

    RPM

    Total

    Akzo

    Akzo

    Paints &

    Coatings

    Total

    Axalta

    Currency USD USD USD USD USD Euro Euro USD

    Sales 15,360 14,250 11,130 4,522 4,376 14,296 9,498 4,362

    Segment

    Income/Net

    Income1,133 2,156 866 345 292 600 793 35

    Unusual

    Charges

    408 -- 26 41 -- 338 228 188*

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

    Interest 137 -- 64 65 65 156 -- 217

    Depreciation &

    Amortization

    476 401 199 101 90 618 299 309

    EBITDA 2,413 2,557 1,547 698 566 1,964 1,320 751

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

    EBITDA as % of Sales (excluding specials):

    2014 EBITDA Reconciliation

    57

    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

    Not adjusted for discontinued operations 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 9,745

    Segment

    Income/Net

    Income

    950 1,867 753 289 256 661 725

    Unusual

    Charges

    253 -- 54 40 -- 273 207

    Income Taxes 342 -- 333 135 106 111 --

    Interest 153 -- 59 63 60 200 --

    Depreciation &

    Amortization

    452 377 188 88 84 616 300

    EBITDA 2,150 2,244 1,388 615 505 1,861 1,232

    % of Sales 15.1% 17.0% 13.6% 15.0% 12.4% 12.8% 12.6%

    EBITDA as % of Sales (excluding specials):

    2013 EBITDA Reconciliation

    58

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

    Not adjusted for discontinued operations 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 12,686 11,654 9,534 4,021 3,777 15,390 9,999

    Segment

    Income/Net

    Income

    663 1,567 631 292 234 (1,593) 650

    Unusual

    Charges

    346 -- 4 25 -- 2,449 230

    Income Taxes 251 -- 276 125 94 203 --

    Interest 170 -- 40 68 68 205 --

    Depreciation &

    Amortization

    399 323 179 94 74 625 307

    EBITDA 1,829 1,890 1,130 604 470 1,889 1,187

    % of Sales 14.4% 16.2% 11.9% 15.0% 12.4% 12.3% 11.9%

    EBITDA as % of Sales (excluding specials):

    2012 EBITDA Reconciliation

    59

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

    Not adjusted for discontinued operations for comparative purposes

  • 1st Quarter Reporting Period

    Adjusted EPS Reconciliation

    Amounts in Millions of USD except EPS

    60

    Continuing Operations Discontinued Operations Total PPG

    Net Income EPS Net Income EPS Net Income EPS

    First Quarter 2015

    Net Income Attributable to PPG as Reported $ 309 $ 1.12 $ 13 $ 0.05 $ 322 $ 1.17

    Transaction-related costs 3 0.01 3 0.01 6 0.02

    Adjusted Net Income Attributable to PPG $ 312 $ 1.13 $ 16 $ 0.06 $ 328 $ 1.19

    First Quarter 2014

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

    Transaction-related costs 2 0.01 -- -- 2 0.01

    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

    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 $ 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

    Transaction-related costs 4 0.01 -- -- 4 0.01

    Adjusted Net Income Attributable to PPG $ 197 $ 0.64 $ 82 $ 0.26 $ 279 $ 0.90

  • Continuing Operations Discontinued Operations Total PPG

    Net Income EPS Net Income EPS Net Income EPS

    Second Quarter 2015

    Net Income Attributable to PPG as Reported $ 319 $ 1.16 $ 18 $ 0.07 $ 337 $ 1.23

    Transaction-related costs 15 0.05 -- -- 15 0.05

    Business restructuring charge 106 0.39 -- -- 106 0.39

    Adjusted Net Income Attributable to PPG $ 440 $ 1.60 $ 18 $ 0.07 $ 458 $ 1.67

    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

    Transaction-related costs 2 0.01 -- -- 2 0.01

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

    Second Quarter 2013

    Net Income Attributable to PPG as Reported $ 317 $ 1.09 $ 24 $ 0.08 $ 341 $ 1.17

    Transaction-related costs 13 0.05 2 0.01 15 0.06

    Adjusted Net Income Attributable to PPG $ 330 $ 1.14 $ 26 $ 0.09 $ 356 $ 1.23

    Second Quarter 2012

    Net Income Attributable to PPG as Reported $ 260 $ 0.84 $ 102 $ 0.33 $ 362 $ 1.17

    Business separation costs -- -- 3 0.01 3 0.01

    Adjusted Net Income Attributable to PPG $ 260 $ 0.84 $ 105 $ 0.34 $ 365 $ 1.18

    2nd Quarter Reporting Period

    Amounts in Millions of USD except EPS

    Adjusted EPS Reconciliation

    61

  • Amounts in Millions of USD except EPS

    Continuing Operations Discontinued Operations Total PPG

    Net Income EPS Net Income EPS Net Income EPS

    Third Quarter 2015

    Net Income Attributable to PPG as Reported $ 415 $ 1.52 $ 18 $ 0.07 $ 433 $ 1.59

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

    Pension settlement charge 5 0.02 -- -- 5 0.02

    Adjusted Net Income Attributable to PPG $ 421 $ 1.54 $ 18 $ 0.07 $ 439 $ 1.61

    Third Quarter 2014

    Net Income Attributable to PPG as Reported $ 346 $ 1.24 $ 25 $ 0.09 $ 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 $ 377 $ 1.35 $ 11 $ 0.04 $ 388 $ 1.39

    Third Quarter 2013

    Net Income Attributable to PPG as Reported $ 195 $ 0.67 $ 31 $ 0.11 $ 226 $ 0.78

    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

    Adjusted Net Income Attributable to PPG $ 327 $ 1.12 $ 32 $ 0.11 $ 359 $ 1.23

    Third Quarter 2012

    Net Income Attributable to PPG as Reported $ 259 $ 0.83 $ 80 $ 0.26 $ 339 $ 1.09

    Business separation costs -- -- 9 0.03 9 0.03

    Adjusted Net Income Attributable to PPG $ 259 $ 0.83 $ 89 $ 0.29 $ 348 $ 1.12

    62

    3rd Quarter Reporting Period

    Adjusted EPS Reconciliation

  • 63

    Continued Operations Discontinued Operations Total PPG

    Net Income EPS Net Income EPS Net Income EPS

    Fourth Quarter 2015

    Net Income Attributable to PPG as Reported $ 295 $ 1.09 $ 19 $ 0.07 $ 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 $ 313 $ 1.16 $ 19 $ 0.07 $ 332 $ 1.23

    Fourth Quarter 2014

    Net Income Attributable to PPG as Reported $ 73 $ 0.26 $ 10 $ 0.04 $ 83 $ 0.30

    Debt refinancing charge 200 0.72 - - 200 0.72

    Transaction-related costs 35 0.12 1 0.01 36 0.13

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

    Adjusted Net Income Attributable to PPG $ 279 $ 0.99 $ 11 $ 0.05 $ 290 $ 1.04

    Fourth Quarter 2013

    Net Income Attributable to PPG as Reported $ 230 $ 0.80 $ 24 $ 0.08 $ 254 $ 0.88

    Transaction-related costs 3 0.01 1 0.01 4 0.02

    Adjusted Net Income Attributable to PPG $ 233 $ 0.81 $ 25 $ 0.09 $ 258 $ 0.90

    Fourth Quarter 2012

    Net Income Attributable to PPG as Reported $ 173 $ 0.56 $ 54 $ 0.17 $ 227 $ 0.73

    Business separation costs 3 0.01 8 0.02 11 0.03

    Adjusted Net Income Attributable to PPG $ 176 $ 0.57 $ 62 $ 0.19 $ 238 $ 0.76

    4th Quarter Reporting Period

    Adjusted EPS Reconciliation

  • PPG Adjusted Earnings Per Share Trend Reconciliation

    Amounts in Millions of USD except EPS

    Adjusted EPS from Continuing Operations

    Y-O-Y Change in Adjusted EPS from Continuing

    Operations

    Period 2012 2013 2014 2015 2013 vs. 2012

    2014 vs.

    2013 2015 vs. 2014

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

    2Q 0.84 1.14 1.40 1.60 0.30 0.26 0.20

    3Q 0.83 1.11 1.38 1.54 0.28 0.27 0.16

    4Q 0.57 0.82 0.99 1.16 0.25 0.17 0.17

    Full Year* $ 2.88 $ 3.78 $ 4.78 $ 5.43 $ 0.90 $ 1.00 $ 0.65

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

    *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.

    64

  • 2015* 2014* 2013* 2012* 2011* 2010*

    Adjusted Net Earnings $1,555 $1,364 $1,202 $1,230 $1,095 $854

    Net Interest Expense (after-

    tax)

    95 143 149 157 158 140

    Adjusted Net Earnings + Net

    Interest Expense

    $1,650 $1,507 $1,351 $1,387 $1,253 $994

    Capital (Average Debt &

    Average Equity) as Reported

    $9,515 $9,200 $8,212 $7,371 $7,526 $6,685

    Net Adjustment (see Net

    Earnings Reconciliations)

    150 231 168 289 - 85

    Adjusted Capital** $9,603 $9,383 $8,395 $7,592 $7,526 $6,753

    Adjusted Return on Capital 17.2% 16.0% 16.1% 18.3% 16.6% 14.0%

    Adjusted Return on Capital

    Full Year

    **This table does not foot due to the averaging effect of Net Adjustments

    65

    *Amounts in Millions of USD, except percentages - Not adjusted for discontinued operations for comparative purposes

  • 2009 2008 2007 2006 2005

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

    Net Interest Expense (after-tax) 135 175 66 61 57

    Adjusted Net Earnings + Net

    Interest Expense

    $612 $932 $934 $903 $820

    Capital (Average Debt &

    Average Equity) as Reported

    $7,088 $8,053 $5,403 $4,587 $4,686

    Net Adjustment (see Net

    Earnings Reconciliations)

    141 219 34 131 167

    Adjusted Capital** $7,237 $8,272 $5,437 $4,718 $4,853

    Adjusted Return on Capital 8.5% 11.3% 17.2% 19.1% 16.9%

    Adjusted Return on Capital

    Full Year

    Amounts in Millions of USD, except percentages - Not adjusted for discontinued operations for comparative purposes

    **This table does not foot due to the rounding effect of Net Adjustments

    66

  • 2015* Quarterly Financial Results by Reportable Segment

    PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES (Continuing Operations)

    BUSINESS SEGMENT INFORMATION (unaudited)

    Q1 Q2 Q3 Q4 Full Year

    2015 2015 2015 2015 2015

    Net sales

    Performance Coatings $ 2,055 $ 2,410 $ 2,240 $ 2,060 $ 8,765

    Industrial Coatings 1,340 1,411 1,354 1,371 5,476

    Glass 136 137 131 121 525

    TOTAL $ 3,531 $ 3,958 $ 3,725 $ 3,552 $ 14,766

    Segment income

    Performance Coatings $ 262 $ 411 $ 379 $ 250 $ 1,302

    Industrial Coatings 244 260 241 240 985

    Glass 11 10 6 11 38

    TOTAL 517 681 626 501 2,325

    Items not allocated to segments

    Legacy items (14) (7) (16) (14) (51)

    Transaction-related costs (5) (21) (1) (17) (44)

    Business restructuring - (140) - - (140)

    Interest expense, net of interest income (18) (24) (21) (23) (86)

    Other corporate expense (66) (64) (34) (57) (221)

    INCOME BEFORE INCOME TAXES $ 414 $ 425 $ 554 $ 390 $ 1,783

    Amounts in Millions of USD

    67*Recast to reflect sale of Flat Glass.

  • www.ppg.com

    Thank you for your interest in PPG

    Industries, Inc.

    Contact Information:

    Investors:

    Scott Minder

    (412) 434-3466

    68

  • 70

    Notes

  • 71

    Notes