PPG Industrial Coatings – Information SessionEast Moline, Illinois
May 14, 2018
Forward-Looking StatementsThe Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the Company. This presentation contains forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. You can identify forward-looking statements by the fact that they do not relate strictly to current or historic facts. Forward-looking statements are identified by the use of the words “aim,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “outlook,” “forecast” and other expressions that indicate future events and trends. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward looking statement, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our reports to the Securities and Exchange Commission. Also, note the following cautionary statements:
Many factors could cause actual results to differ materially from the Company’s forward-looking statements. Such factors include global economic conditions, increasing price and product competition by foreign and domestic competitors, fluctuations in cost and availability of raw materials, the ability to achieve selling price increases, the ability to recover margins, 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.
All of this information speaks only as of May 14, 2018, and any distribution of this presentation after that date is not intended and will not be construed as updating or confirming such information. PPG undertakes no obligation to update any forward-looking statement, except as otherwise required by applicable law.
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PPG Investor Relations “Deep Dive” Program
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Year Topic(s) Location
2007 PPG Aerospace PPG aerospace facility Huntsville, AL
2008 SigmaKalon Acquisition Overview Offsite
2010 PPG Asia and PPG Auto OEM Coatings BMW facility Greenville, SC
2011 PPG Automotive Refinish Penske Racing facility Charlotte, NC
2012 PPG Industrial Coatings Harley Davidson facility York, PA
2013 PPG Packaging Coatings Ball Container facility Williamsburg, VA
2014 PPG Architectural CoatingsPPG company-owned stores, Lowes & The Home Depot locations Dallas, Texas
2015 PPG Comex Cabo San Lucas, Mexico
2016 PPG Research and Development Allison Park, PA
2018 PPG Industrial Coatings PPG/John Deere facilities, East Moline, IL
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No financial updates will be provided during today’s
presentation.
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Today’s Presentation Agenda
2:00pm Industrial Coatings Landscape
Business Segments
Technology and Capabilities
Growth Opportunities
Conclusion
3:45pm Additional Q&A / Wrap-up
PPG Speakers & Attendees
Tim Knavish Senior Vice President
Industrial Coatings
Jeff OravitzVice President
PPG Coatings Services
Vince MoralesSenior Vice President
& CFO
John BrunoDirector
Investor Relations
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Operations
70 countriesin nearly
Founded in1883
Headquarters inPittsburgh, PA
47,000+employees Innovation • Color • Sustainability
Global Maker
Paints, CoatingsSpecialty Materialsand
of
Global Leader in:
Industrial
Transportation
Consumer Products
Construction Markets
Aftermarkets
Serving these markets:
2017
$14.8BRevenue
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Industrial Coatings Landscape
Automotive OEM
Automotive Refinish
Marine
Packaging
Other Transportation
Wood
Powder
CoilGeneral
Industrial
Architectural
Protective
Total Coatings Industry
Market Size $140B
Industrial Coatings
Source: IPPIC Global Market Analysis (2015 – 2020)
Global industrial production growth 3-4% in 20189
AkzoNobel
Sherwin-Williams
Axalta
Beckers
BASF
NipponHenkel
FRAGMENTED
Industrial Coatings Competitive Landscape
PPG Industrial Coatings
• 10 consecutive quarters of above-market volume growth
• CAGR 6% growth (2007 – 2017)
• Recent acquisitions include: • Crown (2017)
• MetoKote (2016)
• IVC Coatings (2015)
Source: PPG Estimates
Market Size $25 - $30B
Industry fragmentation offers opportunity for growth10
Regional Industrial Production Trends
0.80
0.85
0.90
0.95
1.00
1.05
1.10
1.15
2014 2015 2016 2017 2018 2019 2020
US & Canada
0.80
0.85
0.90
0.95
1.00
1.05
1.10
1.15
1.20
2014 2015 2016 2017 2018 2019 2020
Europe
0.80
0.85
0.90
0.95
1.00
1.05
2014 2015 2016 2017 2018 2019 2020
Latin America
0.80
0.90
1.00
1.10
1.20
1.30
1.40
2014 2015 2016 2017 2018 2019 2020
Asia Pacific
Source: IHS Markit; Indexed to 2014
Global economics forecasted to remain strong11
Industrial Coatings Regional Overview
US & Canada
Europe, Middle East & Africa (EMEA)
Asia Pacific
Latin America
Industry by Region PPG Industrial Sales by Region
US & Canada
Europe, Middle East & Africa (EMEA)
Asia Pacific
Latin America
Source: PPG Estimates
PPG expansion opportunities in Asia Pacific / EMEA12
Selecting a Technology
Technology Decision Factors
Pretreatment
• Used in critical adhesion applications
• Metal substrates• Applied prior to
other coatings layers
Electrocoat
• Superior coverage, adhesion, appearance
• Corrosion resistance
• Metal substrates
Liquid
• All substrates• Best color flexibility• Highest design
options
Powder
• Environmentally friendly
• High efficiency• Multiple substrates
DecisionFactors
SafetyEnvironmental impactAppearance
Substrate protectionCapital investment
Total operating costThroughput
Maximum flexibility to provide solutions to meet customer needs13
PPG Technology: Bringing Value to our Customers
We Protect and Beautify the World™
Pretreatment Electrocoat Liquid Powder
Functional Properties
Surface Cleaning / Preparation ✔Corrosion Protection ✔ ✔ ✔ ✔
Edge Coverage ✔ ✔ ✔
Heat Resistance / Protection ✔ ✔ ✔
UV Protection ✔ ✔ ✔
Formability After Paint ✔ ✔
Decorative Properties
Vast Color Library ✔ ✔
Vibrant Color Capability ✔ ✔
Array of Textures ✔ ✔
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Industrial Coatings Technology Offerings
Liquid Electrocoat Powder Pretreatment Coatings Services
North America Europe Asia Pacific South America
AkzoNobel
Sherwin-Williams
Axalta
Beckers
Selected Competitive Offerings
Only PPG offers all technologies globally15
PPG Provides Value Throughout Entire Process
Design
Product Development
Technology
Start-up
Operating Efficiency
• Color design centers• Color styling
• End-user, Voice of Customer research
• Paint process design
• Speed to market• Customer specifications
• Coatings research• Analytical capabilities
• Certified parts testing• Formula optimization
• Product customization• OEM product approvals
• Pretreatment• Electrocoat
• Liquid• Powder
• Specialty products• Resin design & production
• Secure Launch Excellence™• Rapid production ramp-up• Operator training
• Global supply chain• Environmental permitting
• Inventory management• Coatings Services
• Line support• Cost reduction projects
• Statistical analysis
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PPG Industrial Coatings Business Segments
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PPG’s Primary End-Uses Served
Building Products Interior
Transportation
Building Products Exterior
Coil Electronic Materials General Finishes
Heavy-Duty Equipment
AppliancesAuto Parts &Accessories
Functional (APAF)
PPG Industrial Coatings Segment Overview
Heavy Duty Equipment
TransportationBuilding
Products -Exterior
CoilElectronicMaterials
General Finishes
ApplianceAutomotive
Parts -Functional
Building Products -
Interior
Estimated SegmentSize
$1B $1B $2B $3B $2B $7B $1B $3B $6B
Top 3 Share %
35-40% 30-35% 30-35% 40-45% 10-15% 30-35% 30-35% 30-35% 20-25%
Number of Customers
Hundreds Thousands Thousands Hundreds ThousandsTens of
ThousandsHundreds Thousands Thousands
Macro Drivers
• Populationgrowth
• Infrastructure growth
• Farm income
• Emerging region growth
• Rise in logistics demand
• Non-resconstruction
• Non-res construction
• Residential construction
• Technologyadvances
• Consumer preferences
• Mobility trends
• Global GDP• Industrial
Production
• Residentialconstruction
• Emerging middle class
• Automotive builds
• Emergingregion growth
• Residentialconstruction
• Furniture growth
• Design changes
Technologies Used
Source: PPG Estimates
PPG portfolio enables opportunities across many end uses19
Liquid Electrocoat Powder Pretreatment Coatings Services
Heavy Duty Equipment
Segment
• Only PPG provides all technologies• Expertise with OEMs / approvals• Global reach• On-site technical support• Coatings Services
PPG Value Proposition
• ~$1 billion industry; recovering• Agricultural and lawn• Construction and mining• Fork trucks, cranes, equipment
PPG is capitalizing in recovering and globalizing industry 20
PPG SPECTRACRON®
Direct-to-Metal (DTM) Topcoats
PPG SPECTRACRON® HPPPrimerGroundbreaking corrosion control
Robust application with fewer passes required
Driving advanced solutions in a mature industry21
Segment
• Corrosion protection• Ultraviolet durability• Leverage PPG scale, technologies• Global reach and service
PPG Value Proposition
• ~$1 billion industry• Flatbeds and truck trailers• Rail, containers• Motorcycle (depicted next)
Transportation Coatings
Utilizing expertise across PPG Automotive, Refinish and Industrial businesses22
Motorcycle Coatings: Diversity of ApplicationsSpeedHandle
HandleSeat
MufflerCover
Muffler
Side stand
StartSwitch
CycleBody
Fender
Hub
Shock Absorber
Wheel
High-growth segment in emerging markets23
Segment
• Industry leading PPG Duranar TM
• Full range of finishes, colors, glosses• Color match capability• Engineered to meet industry specs
PPG Value Proposition
• ~$2 billion industry• External building walls• Siding panels and accents• Poles and railings
Building Products Exterior
Strong macroeconomic trends supporting commercial construction24
Coatings are optimal for building restoration• High-performance product used in industry for
30 years• Superior weathering characteristics• Benefits of the powder coatings process
PPG CORAFLON®
Portfolio responsive to changes in commercial building specifications25
Segment
• Industry-leading color database• World-class color match• Good-better-best portfolio• Global reach
PPG Value Proposition
• ~$3 billion industry• Transportation• Roofing, gutters• HVAC, garage doors
Coil Products
Diversity of product offerings to penetrate many segment and geographies26
Coil Building Products Protect the Exterior
OR
27
Coil: Value-Tier Building and Construction
End Uses
• Trim coil
• Siding
• Gutters
• Downspouts
• Flashing
PPG Products Supplied
Good
28
Coil: Middle-Tier Building and Construction
End Uses
• Roof and side walls for
commercial and
residential buildings
BetterPPG Products Supplied
29
Coil: High-End Building and Construction
End Uses
• Roofing
• Siding
• Architectural panels for
building facades
BestPPG Products Supplied
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Electronic Materials
Segment
• Rapid product innovation • Integrated styling and design support• Partnering with complex supply chain• Global support for OEMs
PPG Value Proposition
• ~$2 billion industry• Asia-based supply chain• Decorative, conductive, transparent• Laptops, tablets, mobile phones• Wearable and smart home devices
Touchscreens and mobility accelerate future growth31
Electronic Materials
PPG can enhance and protect almost every surface of your touchscreen device
1
3
Cover Lens
Frame Bezel
Back Cover/ Battery Cover
High-Definition Display
4
5
2Touch
Sensor
Fingerprint Sensor
Anti-SmudgeCoating
With PPG Coating
No coating
Water beads
Water pools
Minimal smudging
Pronounced smudging
PPG has technology and innovations for all layers32
Appliance
Segment
• Color vibrancy• Improve customer productivity• Global reach• Low curing temperatures
PPG Value Proposition
• ~$1 billion industry • Household and commercial appliances• Electrical boxes, HVAC equipment
Focus on global customers and high-value segments33
PPG ENVIROCRONTM
EXtreme Mar Resistance (XMR)• High mar and scratch resistance• Cost-effective customer solution• Ideal for highly handled parts
34
Automotive Parts & Accessories
Segment
• Only PPG provides all technologies• High corrosion and heat resistance• Meet extreme durability requirements• Mixed-metal substrates• Leverage PPG OEM relationships
PPG Value Proposition
• ~$3 billion industry• Frames, functional items, trim, interior• Aluminum and steel wheels
Focus on global customers and high value segments35
PPG POWERCRON® & PPGFRAMECOATTM Electrocoat
50% of the world’s carsare protected by PPG’s Powercron products
• World-class corrosion protection• High-edge coverage• Low-VOC• Improved customer productivity
Industry-leading Electrocoat technology36
Building Products - Interior
Segment
• Low-VOC and water-based offerings• Global reach / relationships• Solutions for total finishing process
PPG Value Proposition
• ~$6 billion industry• Flooring, windows, doors, molding• Furniture• Evolving substrates
Historical focus on higher value wood segments37
Wood Coatings Layers
Stains: PPG RAYCRONTM &PPG ENVIRONTM
Primers: PPG DURAGRIP &Fillers: PPG RAYCRONTM
Abrasion-Resistant Sealers: PPG RAYCRONTM & PPG DURETHANETM &PPG CLARITAGETM
Sanding Sealers: PPG RAYCRONTM & PPG DURETHANETM and
Tinted Sealers: PPG RAYCRONTM
Topcoats: PPG RAYCRONTM & PPG DURETHANETM & PPG CLARITAGETM
Full portfolio to meet needs of wood flooring customers38
General Finishes
• Only PPG provides all technologies• Small-batch manufacturing capability• Global footprint / supply position
PPG Value Proposition
Segment
• ~$7 billion industry• Highly diverse end-uses (depicted next)
• Diverse customers / many competitors
Color match capabilities to meet critical needs of diverse customer base39
General Finishes Segmentation
Office Furniture Pipe & Tube Electrical Wire
Tools Fasteners Enclosures Shelving
Solar Trailer Hitches Light-Duty Equipment Sports & Recreation
40
PPG Technology and Capabilities
PPG Coatings Innovation CenterAllison Park, PA
250+ researchers focused on developing market-changing coatings technology
500+ patents in past 10 years
• Synthesis
• Formulation
• Application
• Analytical Capability
Core Activities
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PPG Application Labs Serve Customers Globally
Liquid Coatings
Powder Coatings
Electrocoat
Pretreatment
USCALocations
LALocations
Asia-Pacific Locations
Countries supported by labs
PPG lab
EMEA Locations
43
Example: PPG Industrial Coatings Global Wood Application Center
Capability to replicate any wood industry process
44
PPG Color Resources Deliver Value
PPG Services
• Color styling: color design / development• Color show: presentation of color trends• Styling kit: coated panels demonstrating
trends; released annually• Color workshop: customer is onsite for
design-oriented color development
PPG Value Proposition
• Data-driven focus• Convey trends across industries• Real-time color development• Drives process efficiency
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Phase I Phase II Phase III Phase IV
Documenting Customer Requirements
Product Development and Application Validation
Product Trial Planning and Execution
Product Commercialization and Production Review
PPG’s four-phase process that accelerates the development of new coatings, colors and formulations, and transitions them quickly and seamlessly into customer manufacturing processes
Differentiated service strengthens customer partnerships46
PPG KNOWLEDGE COLLEGETM Courses and Seminars
Liquid Coatings
Powder Coatings Electrocoat Pretreatment
PPG experts engage and educate customers to optimize performance47
Liquid CoatingsValue and product offerings
Products
A complete line of alkyds, urethanes, epoxies and acrylics, including:
• SPECTRACRON® Solvent-based primers and topcoats
• AQUACRONTM Water-based primers and topcoats
• VELVECRONTM Soft-touch coatings
• RAYCRONTM UV-cured coatings
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Liquid Highlight: PPG DURASTARTM ULTRA-COOLTM Coatings
Product Value Proposition
• Application for metal roofing and side walls
• Enables lower building temperature
• Reduces energy usage (lower air conditioning costs)
• Retains color and gloss levels
• Many colors meet the cool roof requirements for LEED® and ENERGY STAR®
PPG DURASTARTM ULTRA-COOLTM coatings provide an alternative to traditional materials49
Powder CoatingsValue and product offerings
Products
Comprehensive mix of acrylic, epoxy, polyester,epoxy polyester hybrid and urethane coatings, including:
• DURANARTM PVDF fluoropolymer coating
• CORAFLON® FEVE fluoropolymer coating
• ENVIROCRONTM Polyester powder coating
• ENVIRACRYL® Acrylic powder coating
• VIVATITM Blending toners
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Powder Highlight: PPG Envirocron® EXTREME PROTECTION
Product Value Proposition
• Innovative dual-coat powder coating system
• Surpasses automotive industry standards for cyclical corrosion
• Market-leading chip resistance
• Exceptional application transfer efficiency; consistent film builds
• Allows for reclaim & recycle, providing cost and environmental advantages
PPG Envirocron® EXTREME PROTECTION provides market-leading chip resistance51
ElectrocoatValue and product offerings
Products
Comprehensive mix of anodic and cathodic products, including epoxies and acrylics.
• POWERCRON® Industry-leading electrocoatthat delivers uniform film build and high yieldrates
• FRAMECOATTM II Specially formulated for automotive parts and accessories and other complex parts
• ELECTROCOLOR® Coatings for electronics
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53
Electrocoat Highlight: PPG Powercron® AdvantEdge™
Product Value Proposition
• Best in class edge corrosion resistance
• Excellent throwpower
• Low cure temperature provides energy savings and reduced carbon emissions
• Reduced environmental impact
• Applications for automotive parts and accessories, heavy duty equipment and fasteners
Pretreatment ProductsValue and product offerings
Products
Complete line of pretreatment products and a variety ofother solutions that strengthen, protect and enhance theproduction and presentation of products.
• Cleaners
• Phosphates
• Sealers
• Solvents
• Engineered products
• Specialty and booth maintenance products
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Pretreatment Highlight: PPG ZIRCOBOND® Industrial Treatment
Zirconium-based thin-film pretreatment system
Zircobond Zn Phosphate
Traditional Zinc Phosphate
Degreasing DI Rinse
Empty
Sealer
DI Rinse
Phosphate
Zircobond
Degreasing
Degreasing
Zircobond Treatment (ExistingLine)
Zircobond DI Rinse
Zircobond Treatment (Greenfield)
Product Value Proposition• Light-weighting enabled• Reduced applied costs• Sustainability
• Lower water & energy usage• Less waste generation
Energy efficient solution over multiple substrates55
Sustainability: Our Vision / 2025 Goals
To be the world’s leading coatings company by consistently delivering high-quality, innovative and sustainable solutions that customers trust to protect and beautify their surroundings.
56
Products
reduction in energy consumption intensity from a 2017 baseline
Looking Ahead to Mobility Changes
Advantaged Battery Performance
Comfort & Utilityon Shared Interiors
Light-Weight Vehicle and Increased
Functionality
ImprovedLIDAR, Radar, InfrastructureCommunication
57
Only PPG provides all technologies globally
PPG technology initiatives are aligned with evolving customer requirements and regulations
PPG provides full range of support services to our customers
PPG provides global reach and leverage from all PPG businesses
PPG Industrial Coatings Technology Summary
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Growth Opportunities
2010 2017
PPG Industrial Coatings Delivers Consistent Growth
Sales Growth9% CAGR
*Stated in constant currency
Growth Drivers
• Geographic expansion
• New product launches
• Expanding customer relationships
• Developing new segments
• Global infrastructure spending
• Acquisitions
Demonstrated historical above-industry growth60
• Global business covering mature markets plus all key emerging markets
• Attractive customer mix, ranging from global OEMs to local manufacturers
• Many different segments & sub-segments
• Diversity of technology offerings
• Ten+ application methods
• Fast-changing environmental standards
• Industry participants are highly fragmented
Industry Complexity = PPG Opportunity
61
Customer Relationships
• Solve problems for our customers
• PPG Coatings Services opportunities
• Build long-term relationships / partnerships
• Utilize PPG’s scale / geographic reach
PPG Growth Strategy: Make Choices, Focus, Deliver
High-Growth Opportunities
• Build strength in high growth opportunity segments:• Electronic Materials
• General Finishes
• Transportation
Geographic Expansion:
• Leverage footprint of other PPG businesses
• Invest for growth: India, China, Vietnam
• Leverage scale / geographic reach
Acquisitions:
• Expand track record of successful Industrial Coatings acquisitions
• Leverage PPG integration expertise
Focus in a complex industry drives growth62
• Support global PPG customers providing equipment, coatings and service
• Strengthen customer relationships
PPG Coatings Services
Strategic Fit
Growth Potential
• Expand in emerging markets: China, India, Southeast Asia
• Leverage automation to improve application efficiency and lower cost
• Grow with the combination of the MetoKote (2016) and Crown Group acquisitions (2017)
• Grow by leveraging multiple platforms: coatings, services and equipment
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Oil
Auto
Construction
Equipment
Agriculture
Truck
Extrusion
Consumer
Appliance
Furniture
Recreation
Military Flooring
Other
Coatings Services Industry
$45 - $50 billion services industry
• Focus segments* align well with Industrial Coatings
• Services are supplied from a diverse, fragmented base of coaters globally
• Outsourcing of the coatings process is growing
*Circled industries are PPG focus areas
Coatings services provides additional industry access 64
Source: PPG Estimates
Coatings Services Line Example
Parts arrive from customer
Pallets unloaded from truck
and unpacked
Parts are scheduled
and staged for processing
Parts are racked
onto line
Parts processed per customer specification:PretreatmentElectrocoat
LiquidPowder
Parts unrackedfrom line and into
containers
Parts shipped to customer or next process
Containers palletized
for shipping
Pallets loaded
onto truck
Parts are monitored and managed by proprietary internal tracking system
PPG tracks and processes >2 million parts per day65
PPG Coatings Services Footprint
US Locations
25 locations:
Customer Sites
General Purposes
Asia PacificLocations
Taiwan
Mexico Locations
8 locations:
Customer Sites
General Purposes
Europe Locations
7 locations:
Customer Sites
General Purposes
Significant growth opportunities remain66
PPG Coatings Services Capabilities
• Perform coating of customer parts as an outsourcing solution
• Manage entire coating application process• Compliments the supply of coatings• Sold to OEMs and tier component suppliers
Application Services
PPG Value Proposition
• High quality and performance• Delivery speed and efficiency• Proprietary inventory tracking, data
collection and process control systems• Lower total landed cost for our customers
67
Services are Supplied Through Multiple Channels
• PPG located inside or close to customer facility
• Process parts used by the specific customer assembly plant
• PPG manages the entire coatings process & multiple technologies
• Greatly reduces supply chain costs and turnaround time
Customer Specific Service Centers
PPG: 13 Locations
General Purpose Service Centers
Technology Specific Service Centers
• PPG located inside or close to customer facility
• PPG uses advanced coatings technologies and application capabilities for specific customer requirements
• Frequently provide additional value-added services beyond coating
• Customer sends parts to coater location for processing
• PPG processes parts and either returns them to customer or sends them to next assembly process
• Geographic proximity
PPG: 7 Locations PPG: 21 Locations
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Coatings Services Equipment Design
• Leverages in-house expertise• Solve customer problems with design and
supply of application equipment• Compliments the supply of coatings and
services
Application Equipment
PPG Value Proposition
• High operating efficiency and uptime• Modular, re-deployable engineering designs
increase flexibility of equipment solutions• Ease of operation and maintenance reduce
customer complexity and costs• Capability across all coatings technologies
69
Customer Relationships
• Solve problems for our customers
• PPG Coatings Services opportunities
• Build long-term relationships / partnerships
• Utilize PPG’s scale / geographic reach
PPG Growth Strategy: Make Choices, Focus, Deliver
High-Growth Opportunities
• Build strength in high growth opportunity segments:• Electronic Materials
• General Finishes
• Transportation
Geographic Expansion
• Leverage footprint of other PPG businesses
• Invest for growth: India, China, Vietnam
• Leverage scale / geographic reach
Acquisitions
• Expand track record of successful Industrial Coatings acquisitions
• Leverage PPG integration expertise
Successful track record with bolt-on acquisitions70
PPG Industrial Acquisitions Since 2000
APPG JV (India)
BASF NA Coil
Spraylat Coatings
IVC Coatings
MetoKote
The Crown Group
2000 2017
SigmaKalon
2010
Ameron / Dongju (Korea)
AkzoNobel
Sherwin-Williams
Axalta
Beckers
BASF
NipponHenkel
FRAGMENTED
Source: PPG Estimates
Market Size $25 - $30B
Variety of acquisition opportunities remain71
PPG IVC Acquisition Facts• Acquired in 2015
• Sales over $100MM
• Privately held company
• Six manufacturing facilities
• New plant in southern China
• Southeast Asia presence
• 70% powder / 30% liquid
Update• Focus in metal office furniture
• Sales exceeding expectations
• Expanded powder capabilities
• Expanding southern China plant
• Exceeding cost synergies
Sales and cost synergies exceeding expectations72
Customer Relationships
• Solve problems for our customers
• PPG Coatings Services opportunities
• Build long-term relationships / partnerships
• Utilize PPG’s scale / geographic reach
PPG Growth Strategy: Make Choices, Focus, Deliver
High-Growth Opportunities
• Build strength in high growth opportunity segments:• Electronic Materials
• General Finishes
• Transportation
Geographic Expansion
• Leverage footprint of other PPG businesses
• Invest for growth: India, China, Vietnam
• Leverage scale / geographic reach
Acquisitions
• Expand track record of successful Industrial Coatings acquisitions
• Leverage PPG integration expertise
PPG continues to make significant organic growth investments73
Sriperumbudur, India
Vietnam Powder Investment
Zhangjiagang, China Resin
Monterrey, Mexico
Investing for the FutureLipetsk, Russia
74
Dahej, India
2012 2017
Industrial Coatings Growth in China
8% CAGR
*Stated in constant currency
PPG China Sales GrowthChina Industrial Production
100%
110%
120%
130%
140%
150%
160%
170%
2012 2013 2014 2015 2016 2017 2018 2019 2020
5% CAGR
Source: IHS Markit; Indexed to 2011
PPG outpacing industry growth rate75
Finally, Our People …….
My confidence in executioncomes from our people
Dedicated Industrial Coatings associates safely deliver world-class products and service to our customers 365 days a year.
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Summary
Industrial is the second largest segment within the coatings industry at $25-$30B
PPG’s scale positions us well for growth
Global footprint supports growth in emerging regions
Consistent, global product and service supply valued by multi-national customers
Investment in innovation enables PPG to provide differentiated solutions
Only PPG offers all technologies globally
Technology portfolio and resources aligned with evolving regulations
Complexity of end-uses, technologies and application methods provide opportunity for growth
Thank you for time and interest!
Spectracron, Coraflon, Enviracryl, Powercron, Zircobond, Electrocolor, and Colorful Communities are registered trademarks of PPG Industries Ohio, Inc.
The PPG Logo, Claritage, Secure Launch Excellence, Ultra-Cool, Duranar, Durastar, Environ, Plasticron, Duraform, Envirocron, Framecoat, Raycron, Durethane, Aquacron, Vivati, and Velvecron are trademarks of PPG Industries Ohio, Inc.
John Deere and the Deer Logo are registered trademarks of Deere & Company.
NHL, and the NHL Shield are registered trademarks of the National Hockey League.
© 2018 PPG Industries, Inc. All Rights Reserved
Additional Q&A / Wrap-up
PPG Executive Profiles
Timothy M. KnavishSenior Vice President,Industrial Coatings
Timothy M. Knavish is senior vice president, industrial coatings, PPG. In addition to global leadership of PPG’s industrial coatings, packaging coatings and coatings services businesses, Knavish is responsible for the global supply management function and operations in PPG’s Asia Pacific region.
Knavish joined PPG in flat glass engineering in 1987, based at the corporate headquarters in Pittsburgh. He then advanced through roles including process engineer, supervisor of technical services, manager of operations planning and scheduling, and superintendent of production in PPG’s flat glass and former automotive glass businesses before joining the architectural coatings business in 2000, as plant manager for the East Point, Georgia, manufacturing facility.
In 2002, Knavish returned to Pittsburgh as director, supply chain, for the former automotive replacement glass business, and in 2004, he became global director, manufacturing and supply chain, for the automotive refinish coatings business. He moved to Australia in 2005 as managing director, Australia and New Zealand coatings, and general manager, automotive refinish. In 2007, Knavish assumed responsibility in Troy, Michigan, as general manager, automotive coatings, Americas, and in early 2010, he was named a vice president with the same scope of responsibility. He relocated to Pittsburgh in 2012 as global vice president, protective and marine coatings, and he returned to Troy in March 2016 as senior vice president, automotive coatings. Knavish returned to Pittsburgh in his current role in October 2017.
A native of Pittsburgh, Knavish earned both a bachelor’s degree in mechanical engineering and an MBA from the University of Pittsburgh.
Jeffrey J. OravitzVice President, PPG Coatings Services and President, MetoKote PPG
Since July 1, 2016, Mr. Oravitz has served as vice president, PPG coatings services and president, MetoKote at PPG, a leading coatings and specialty products and services company. He is responsible for more than 3,000 global employees and 40 coatings service centers worldwide. Mr. Oravitz spent over 11 years with MetoKote Corporation, Lima, Ohio, a coatings services company which applies coatings to customers’ manufactured parts and assembled products throughout North America and Europe, which PPG acquired in 2016. He was president and chief executive officer, MetoKote from 2011 to June, 2016; global vice president, business development from 2009 to 2011; vice president, North American operations from 2008 to 2009; and vice president, North American in-plant businesses from 2005 to 2007. He also served on the board of directors of MetoKote Corporation from 2011 to 2016. Previously, Mr. Oravitz served at PPG for 20 years from 1985 to 2005 in a variety of increasingly responsible technical, commercial, and management roles in several coatings businesses.
Mr. Oravitz holds a bachelor in science degree in chemistry and a master of business administration degree from the University of Pittsburgh, Pittsburgh, Pennsylvania, both with Honors.
Since March 2017, Mr. Oravitz is a member of the board of directors of The Ohio Manufacturers’ Association and he previously was a member of the board of directors of The Electrocoat Association from 1997 to 1999.
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PPG Executive Profiles
Vincent J. MoralesSenior Vice President and Chief Financial Officer
Vince Morales is senior vice president and chief financial officer of PPG. He serves on the company’s executive and operating committees.
Morales joined PPG in the corporate controller’s office, Pittsburgh headquarters, in 1985. He then advanced through finance and accounting assignments at PPG facilities such as supervisor, shared accounting services, at the Chillicothe, Ohio, shared services center and director, information and financial services, at the former PPG glass plant in Mount Zion, Illinois.
Morales returned to Pittsburgh in 2000 as manager, chemical revenue recognition, and then became director, internal financial reporting, in 2001. He was named director, investor relations, in 2004 and then promoted to vice president in 2007. Morales added responsibility as corporate treasurer in 2015. He was appointed vice president, finance, in June 2016, and he assumed his current role in March 2017.
A native of Pittsburgh, Morales earned a bachelor’s degree in accounting from Robert Morris University and a Master of Business Administration from the Ohio State University.
John BrunoDirector, InvestorRelations
Since July 1, 2017, John Bruno has served as director, investor relations at PPG, a leading coatings and specialty products and services company based in Pittsburgh, Pennsylvania. He oversees all of PPG’s interactions with the investment community.
Bruno has broad financial and leadership experience in his over 20 years with PPG since 1995. Before his current role, he was located in Hong Kong as chief financial officer, Asia Pacific, from November 2013 to June 2017, responsible for all finance matters in the region and overseeing approximately 300 employees. Prior to that, Bruno was located in Pittsburgh as director, corporate audit services, including an appointment as the Secretary of the Audit Committee of the PPG Board of Directors from December 1, 2009 to November 1, 2013, and an additional interim chief compliance officer role from April to November 2013. From 2007 to 2009, he was located in Rolle, Switzerland to support the integration of PPG’s SigmaKalonacquisition and then serving as corporate controller, Europe, Middle East and Africa. His previous roles included senior finance positions in the automotive replacement glass, insurance and services businesses and in corporate development. Prior to joining PPG, Bruno spent six years in financial positions at United States Steel Corporation from 1989 to 1995 and was an adjunct accounting professor at Duquesne University, Pittsburgh, Pennsylvania, from 2000 to 2007.
Bruno holds bachelor of science in finance and master of business administration degrees from Duquesne University and is an active certified public accountant.
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