PPG Investor Overview
March 25, 2020
2
Notes
Forward-looking statements
3
This presentation contains forward-looking statements that reflect the Company’s current views with respect to future events
and financial performance. You can identify forward-looking statements by the fact that they do not relate strictly to current or
historic facts. Forward-looking statements are identified by the use of the words “aim,” “believe,” “expect,” “anticipate,”
“intend,” “estimate,” “project,” “outlook,” “forecast” and other expressions that indicate future events and trends. Any forward-
looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation
to update any forward-looking statement, whether as a result of new information, future events or otherwise. You are advised,
however, to consult any further disclosures we make on related subjects in our reports to the Securities and Exchange
Commission. Also, note the following cautionary statements:
Many factors could cause actual results to differ materially from the Company’s forward-looking statements. Such factors
include global economic conditions, increasing price and product competition by foreign and domestic competitors,
fluctuations in cost and availability of raw materials, the ability to achieve selling price increases, the ability to recover
margins, customer inventory levels, our ability to maintain favorable supplier relationships and arrangements, the timing of
and the realization of anticipated cost savings from restructuring initiatives, the ability to identify additional cost savings
opportunities, difficulties in integrating acquired businesses and achieving expected synergies therefrom, economic and
political conditions in the markets we serve, 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, disruption to our business resulting from the COVID-
19 virus, the results of governmental investigations 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 2019 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 income, business disruption, operational problems,
financial loss, legal liability to third parties, other factors set forth in Item 1A of PPG’s 2019 Form 10-K and similar risks, any
of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations or
liquidity.
4
A global maker of paints, coatings and
specialty materials, with full-year net
sales of $15.1 billion in 2019
Corporate Social Responsibility Awards
• EcoVadis Gold Rating
• Constituent of the FTSE4Good Index Series
• Forbes Best Employers for Diversity in 2019
• Canada’s Best Employers 2019 List
Product and Process Awards
• R&D 100 Awards for PPG POWERCRON® 160
anionic epoxy electrocoat (e-coat) technology
Customer Awards
• Best Performer Award from Airbus
• Silver Boeing Performance Excellence Award
• Excellent Supplier Diversity Award from Toyota North
America + Quality Excellence Performance Award from
Toyota Latin America and Caribbean
How We Rank
Our employees protect and beautify the world
Ranked among the “World’s Most Admired Companies” in its industry by
Fortune Magazine in 2019
Who We Are
A leader in all our markets: construction,
consumer products, industrial and
transportation markets and aftermarkets
Headquartered in Pittsburgh,
Pennsylvania, with operations in more
than 70 countries; 47,000+ employees
Founded in 1883
Stock listing NYSE (Symbol: PPG)
Fortune 500: Ranked #205
Forbes’ Global 2000: Ranked #606
PPG background and recognition
2019 key achievementsStrategic Portfolio Actions
•Acquisitions with annual revenue of about $500 million
• Expanded technological capabilities and global footprint
Strong Financial & Operational Performance
•Grew adjusted EPS* by ~8% (excluding foreign currency translationimpact)
•Delivered approximately $85 million in cost savings from restructuring
actions
Cash and Cash Deployment
•Record ~$2.1 billion of cash generated from operations
•Quarterly per share dividend increase – 48th consecutive year (6% annual increase)
•Returned approximately $0.8 billion of cash to shareholders
• $0.5 billion for dividends
• $0.3 billion for share repurchases
5
* See appendix for reconciliation of PPG reported to adjusted EPS
Well positioned to deliver growth
PPG has many opportunities for profitable growth 6
• Specialty products and solutions with key functional value
• Highly Diversified global coatings company
• Growing portfolio of Sustainable products
• High percent of sales to Aftermarket end-use markets
• Strong pipeline of Innovative products
• Successful acquirer of coatings assets: Consolidating industry
7
Attractive positioning (Specialty chemicals)
Global footprint and capabilities
Innovative
PPG provides attractive investment fundamentals
1
2
• High functional value products
• Stable earnings/cash flow
• Vast growth potential
• Customer reach across every major region
• Opportunities to expand in Asia and growth markets
• Diverse participation in all key coatings end-use markets
• Shared service centers support lower cost
• Commitment to investment; R&D spend ~3% of sales
• New product sales nearing 23% of total sales
• On the frontier with products for electric vehicles
Powercron®
Epoxy electrocoat – low-temp cure
Auto-refinish automated
painting system
3
Environmental Formulation Application Functionality Color
8
Innovation levers at PPGDriving innovation across all aspects of coatings technology
2016
R&D 100 Finalist
2018
R&D 100 Finalist
Low Temperature
Cure
Coating System
for Ferrari
DESOTHANE ®
Solar Heat
Management
Coatings
Innovation Levers
2019
R&D 100 Winner
Powercron ® 160
Anodic Epoxy
Electrocoat
OLYMPIC ®
SMARTGUARD,
Multisurface
Waterproofer
2018
R&D 100 Winner
2017
R&D 100 Winner
LIQUID NAILS®
Fuze*It®
9
ESG commitment drives value
Products and
processes
Our
people
Resource
efficiency
Our
footprint
Environmental
safety
In 2019:
• Zero process
waste to landfill
for 33% of
manufacturing
and R&D
locations
• 29% less waste
disposed vs.
2017 baseline
32% reduction in
spill & release rate
in 2019 vs. 2017
baseline33%
Goal
Zero Injuries
2019 sales from
sustainably-
advantaged
products and
processes
7%
Less GHG
emissions in 2019
vs. 2017 baseline
AMSCI ESG(scale AAA
to CCC)
Acquisitions contribute to sales growth
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Acquisition Sales Growth Over Prior Year
Notable acquisitions:
2013: AkzoNobel North America
2014/5: Comex (partial years)
+3% average sales
growth from
acquisitions
(USD MM)
Acquisitions supplement organic growth
10
Other
Global paint and coatings industry (~$140B)
Competitive Landscape
PPG has completed 23 strategic acquisitions since the beginning of 201511
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 Pacific 17%
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%
12
EMEA includes Europe, Middle East, and Africa
Coatings end-usesIndustry End Use Demand
(~$140B Sales Value)
Source: IPPIC, Company Annual Reports, PPG estimates
PPG Coatings End-Use Net
Sales Mix
PPG is in line with the global coatings industry end-use mix
13
General Industrial
Architectural
Automotive OEM & Aftermarket
Protective & Marine, Packaging, Aerospace
General Industrial
19%
Construction (New &
Maintenance)36%
Auto OEM, Parts, &
Aftermarket30%
Aerospace, Packaging &
Marine15%
#1 End-Use Position #2 End-Use Position #3 End-Use Position Meaningful presence No Current Meaningful Presence
PPG global end-use positions
Source: IPPIC; company annual reports, PPG estimates
Position by Coatings Vertical
PPG growth opportunity: To be #1 or #2 in every country/vertical
Source: Orr and Boss; Company Annual Reports; PPG estimates
---------- Participation in all end-use markets -----------
Global
Position
ArchGeneral
Industrial
Protective
& MarineAuto OEM
Refinish /
CollisionPackaging
Aerospace
PPG #2 #2 #3 ~#3 #1 #2 #2 #1
Sherwin-
Williams#1
AkzoNobel #3
Nippon #4
RPM #5
Axalta #6
BASF #7
14
15
PPG reporting segments drive our business
Performance Coatings
• Aerospace Coatings
• Architectural Coatings
- Americas & Asia Pacific
- Europe, Middle East, Africa
• Automotive Refinish Coatings
• Protective & Marine Coatings
40%
Industrial Coatings
• Automotive OEM Coatings
• Industrial Coatings
• Packaging Coatings
• Specialty Coatings & Materials
~ ~
• Automotive Refinish Coatings
• Architectural Coatings - Americas &
Asia Pacific
• Architectural Coatings - Europe, Middle
East, Africa
• Aerospace Coatings
• Protective & Marine Coatings16
$8.4 $8.5 $8.6$8.9
$9.0
14.8%15.4% 15.2%
14.4%
15.7%
'15 '16 '17 '18 '19
U.S. & Canada
45%
EMEA32%
Asia12%
Latin America11%
Net Sales with ROS* 2019 Net Sales by Geography
5-Year CAGR* +2%
EMEA: Europe,
Middle East, and
Africa
• Distribution focus
• After-market and maintenance component
• Consistent cash generation
• Stable industries
Strategic Business Units Segment Traits
$B
Performance Coatings segment
*includes acquisitions and excludes currency impact
'17 '18 '19
U.S. & Canada
EMEA
Asia Latin America
'15 '16 '17 '18 '19
Net Sales* 2019 Net Sales by Geography
5-Year CAGR* ~ 2%
17
• Color complexity
• Emerging region growth
• Technology shift to waterborne
• Value added programs and training
• Growth of advanced driver-
assistance systems
PPG Global Waterborne Paint ShopsKey Industry Trends
*includes acquisition and excludes currency impact
EMEA: Europe,
Middle East,
and Africa
3-Year CAGR ~ 7%000s
Automotive Refinish
50%
50%
30%
70%
U.S. & Canada
EMEA Asia
'15 '16 '17 '18 '19
Net Sales* 2019 Net Sales by Geography
5-Year CAGR* ~ 7%
18
• Single aisle aircraft driving growth
• Industry consolidation and OEM
vertical integration intensify
• Stable to moderate fuel
prices/strong passenger load factor
• Shift to robotic applications and
automation
Net Sales MixKey Industry Trends
*includes acquisition and excludes currency impact
EMEA: Europe,
Middle East,
and Africa
Aerospace
Aftermarket
OEM Military
Commercial
U.S. & Canada
EMEA
Asia
Latin America
15 16 17 18 19
Net Sales* 2019 Net Sales by Geography
5-Year CAGR* ~ 4%
19
• Infrastructure ($4.4B)
• Energy ($3.8B)
• Marine Aftermarket ($2.3B)
• Industrial Maintenance ($1.9B)
• Marine OEM ($1.3B)
PPG Net Sales MixKey Industry End Uses
*includes acquisition and excludes currency impact
EMEA: Europe,
Middle East,
and Africa
Protective & Marine Coatings (PMC)
Marine After Market
Marine New Build
0%
25%
50%
75%
100%
Protective
Coatings
Marine New Build
Marine After
Market
Protective
Coatings
20192009
'15 '16 '17 '18 '19
Net Sales* 2019 Net Sales by Geography
5-Year CAGR* ~ 2%
20
*includes acquisition and excludes currency impact
Architectural Coatings*
National
Retailers
(DIY)
25%
Strong Local Architectural BrandsPPG Net Sales Mix
Region Stores
USCA ~900
LA ~5,000**
AP ~50
EMEA ~700
U.S. & Canada
~45% DIY
EMEA ~35% DIY
Asia
Latin America
Region Company
Stores
Independent
Dealers
National
Retailers
USCA 50% 15% 35%
LA 2% 89% 9%
AP 15% 44% 41%
EMEA 48% 30% 22%
Worldwide 40% 35% 25%
EMEA: Europe,
Middle East,
and Africa
*Architectural Americas & Asia-Pacific and Architectural EMEA strategic business units
**Latin America “stores” are mostly concessionaire locations in Mexico and Central America
Architectural coatings is diversified globally
and well positioned
PPG’s local brands provide opportunities for growth 21
Region Strength / Focus Brands
U.S. and Canada • Services / Delivery
• Digitalization
• Higher variable cost structure
EMEA • Strong local brands
• One of the leading positions in
most countries
Latin America • Strong brand recognition
• Concessionaire model
• Expansion into Central America
• New factory in Panama
Asia-Pacific • Strong brand in ANZ
• Regional participation in China
• Automotive OEM Coatings
• Industrial Coatings
• Packaging Coatings
• Specialty Coatings & Materials
22
$5.2$5.6
$5.8$6.1 $6.1
18.2% 18.7%16.4%
13.1% 14.1%
'15 '16 '17 '18 '19
U.S. & Canada40%
EMEA28%
Asia24%
Latin America9%
Net Sales with ROS* 2019 Net Sales by Geography5-Year CAGR* +3%
EMEA: Europe,
Middle East, and
Africa
• Technology-advantaged products
• Mix of global and local customers
• High quality product performance
• Global customer footprint
Strategic Business Units Segment Traits
$B
Industrial Coatings segment
*includes acquisition and excludes currency impact
U.S. & Canada
EMEA
Asia
Latin America
'15 '16 '17 '18 '19
Net Sales* 2019 Net Sales by Geography
5-Year CAGR* ~ 1%
23
Global Auto OEM Production
Customer MixKey Industry Trends
*includes acquisition and excludes currency impact
EMEA: Europe,
Middle East,
and Africa
Automotive OEM
50
60
70
80
90
100
'15 '16 '17 '18 '19
5-Year CAGR ~ 0%
All Remaining
Customers
U.S.
Based
Non-U.S.
Based
Top 7 PPG
Automotive
Customers
300
450
600
750
'15 '16 '17 '18 19
U.S. & Canada
EMEA
Asia
Latin America
'15 '16 '17 '18 19
Net Sales* 2019 Net Sales by Geography
5-Year CAGR* ~ 7%
24
Asia Net Sales*Key Industry End Uses
*includes acquisition and excludes currency impact
EMEA: Europe,
Middle East,
and Africa
Industrial Coatings
• Heavy-duty Equipment
• Appliances
• Electronic Materials
• Coil
• Automotive Accessories
• Transportation
• Office Furniture
5-Year CAGR* ~4%
*includes acquisition and excludes currency impact
U.S. &
CanadaEMEA
Asia
Latin America
'15 '16 '17 '18 '19
Net Sales* 2019 Net Sales by Geography
5-Year CAGR* ~2%
25
Metal Packaging Industry SegmentsKey Industry Trends
*includes acquisition and excludes currency impact
EMEA: Europe,
Middle East,
and Africa
Packaging Coatings
• Metal packaging industry growth driven
by sustainability, performance and safety
• Conversion to BPA-NI technology
continues globally
• Can makers drive toward complexity
reduction in coatings portfolio
Beverage
Food
Other
Personal Care
'15 '16 '17 '18 '19
Net Sales* 2019 Net Sales by Geography
5-Year CAGR* ~ 0%
26
Net Sales MixKey Industry Trends
*excludes currency impact and R&D services
EMEA: Europe,
Middle East,
and Africa
Specialty Coatings & Materials
Beverage
Silica
Teslin
Optical Monomers and Dyes
OLED materials
U.S. & Canada
EMEA Asia
• Mobile device conversions and TV
transitioning to OLED technology
• Growth in large diameter tires and
tires containing premium silica
products
• Growth in durable labels in safety
critical applications
Coatings cost comparison
Sold in 2,000
Liter Totes
Sold in 1
Gallon
Paint
Cans
And 5
Gallon
Buckets
Average Architectural Coatings
Industry estimates – figures vary greatly by end-use and application
Source: PPG Estimates
Average Industrial Coatings
Raw material basket and manufacturing/distribution costs are different
Resins and Latex
Titanium Dioxide
Solvents and Pigments
Additives
Manufacturing
Packaging
Distribution - intermediate
Distribution - final
Resins and Latex
Titanium Dioxide
Solvents and Pigments
Additives
Manufacturing
Packaging
Distribution - final
27
+ Incremental impact due to the adoption of IFRS 16 “Leases” in 2019.
Adjusted EBITDA from continuing operations as percent of sales as reported in company reports (excluding unusual items);
See Appendix for reconciliations.
PPG remains a margin leader across coatings sector
17% 17%
15%
13%
21%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
PPG Sherwin-Williams Akzo Nobel RPM Axalta
2019 Full Year EBITDA as % of Net Sales
Coatings Peers EBITDA %
28
+
Adjusted EBITDA from continuing operations as percent of sales as reported in company reports (excluding unusual items); See Appendix for
reconciliations.
17%
16%
15%
14%
19%
18%
17%
13%14%
21%
17%
16%
12%
13%
19%
16% 16%
11%
13%
19%
17% 17%
13%
21%
-1.0%
1.0%
3.0%
5.0%
7.0%
9.0%
11.0%
13.0%
15.0%
17.0%
19.0%
21.0%
23.0%
PPG Sherwin-Williams Akzo Nobel RPM Axalta
Full Year EBITDA as % of Net Sales
2015 2016 2017 2018 2019
15%
+
Coatings Peers EBITDA %
Consistent coatings industry margins across varying economic conditions
29
+ Incremental impact due to the adoption of IFRS 16 “Leases” in 2019.
Corporate cost as a percentage of sales*
Source: Annual company filings
2%
3%
2%
1% 1%
3%
2%
2%
'15 '16 '17 '18 '19 '15 '16 '17 '18 '19 '15 '16 '17 '18 '19 '15 '16 '17 '18 '19
PPG Average:
1%
*Axalta corporate cost results are not reported in company filings
30
31
Industry leading 2019 return on capital*Measurable proof of PPG’s successful, disciplined and value creating M&A
*Adjusted ROC excluding certain items (see reconciliation at end of presentation)
15.1% 14.7%
11.1%
8.6%
6.4%
PPG Sherwin RPM Axalta Akzo
* Adjusted to exclude certain charges, see appendix for reconciliation. All years as originally reported, not adjusted for business divestitures.
ROC trend demonstrates successful acquisition integration
PPG return on capital (adjusted)*
32
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
2017 2018 2019
Capital Return on Capital
15.1%
2%
6%
10%
14%
0
200
400
600
EB
IT M
arg
in o
n S
ale
s
Ea
rnin
gs
Earnings EBIT %
0
1,000
2,000
3,000
4,000
5,000
Sa
les
Other PPG Businesses
Architectural Coatings EMEA
PPG Net Sales Mix (€MM) Earnings (€MM)
Sales growth continues with improved margins in 2019
33
Total PPG Europe, Middle East and Africa
$1,000
$2,000
$3,000
'13 '14 '15 '16 '17 '18 '19
Consolidated Net Sales
$0
$200
$400
$600
'13 '14 '15 '16 '17 '18 '19
Segment Income
Recent years impacted by significant cost inflation, depreciation of
Asian currencies and weak automotive demand
$MM - USD
PPG Asia-Pacific financials
$MM - USD
34
Strong and growing Asia-Pacific presence (excl. Japan)
*Many Leading Asia Markets (excl. Japan)
Performance
Industrial
Broad, full range coatings business portfolio
PPG Asia Net Sales Mix (2019)*Industry Coatings Demand for Asia
*Coatings Industry in Asia remains Fragmented
Sources: PPG Internal estimates (excludes Japan includes ARCH)
PPG Market
Position
PPG ’14 - ’19
CAGR
Automotive OEM #2 0%
General Industrial #2 5%
Packaging #1 2%
Auto Refinish #1 3%
Aerospace #1 9%
Protective/Marine #4 3%
Architectural #7 3%
Total Coatings #3 3%
Nippon 8%
Akzo 7%
PPG 5%
Asian Paints 5%
Kansai 3%
KCC 2%
S-W 2%
Jotun 2%
Berger 2%
Axalta 2%
BASF 1%
Noroo 1%TOA 1%SKShu 1%
Hempel 1%Chugoku 1%
Carpoly 1%
Others 55%
#~14,000
players
35
60%14%
13%
9%4% China
India
Southeast Asia
Korea
ANZ
*PPG estimates
PPG ‘14-’19 CAGR excludes currency impact
Robust cash generation over time while transforming the business portfolio
$2.4B
$1.7B
$1.2B
$1.5B
$1.9B
$1.5B
$1.0B
$1.3B
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
'12 '13 '14 '15 '16 '17 '18 '19
Approximate Cash & Short Term Investments
* As originally reported, not adjusted for business divestitures
Millions USD
PPG cash trends
36
$1,000
$1,300
$1,600
$1,900
$2,200
'12 '13 '14 '15 '16 '17 '18 '19
Cash From Operations*
+ Adjusted Cash from Operations; excluding cash paid to fund the Pittsburgh Corning asbestos trust
Ad
juste
d +
Cash Use Summary:
Grow Business ~45%
Return to Shareholders ~55%
20%
26%
18%
36%
Past 10 Years (~$22B)(2010 – 2019)
Approximate 2019 Cash Uses
$ in millions – As reported, not adjusted for business divestitures
Legacy of consistent and prudent cash deployment
Balanced cash deployment
37
$415
$680
$470
$325 Capital Spending
Acquisitions*
Dividends
Share Repurchases
*Acquisitions includes the 2019 cash paid to acquire the remaining minority interest in a coatings business.
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
'10 '12 '14 '16 '18 ‘19
0
200
400
600
800
1,000
1,200
1,400
2020 2021 2022 2023 2024 2025 2027 2028 2029 2038 2040 2044
USD Notes
EUR Notes
48 Years of Increased DividendsDividends per share – Adjusted for
stock splits
$ in millions
Long-Term Debt Maturity
Schedule13%
7%
3%
4%3%
2%3%
3% 3%2% 3%
0%
2%
4%
6%
8%
10%
12%
14%
1980 || 1990 || '03 '05 '07 '09 '11 '13 '15 '17 '19
Capital Spending as % of Sales (As originally reported, not adjusted for business
divestitures)
Last 5 years
Average =
~3.0%
PPG Share Repurchases
$ in millions
Average
~$800MM
Average
~$975MM
PPG financial hallmarks
38
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
$1.80
$2.00
$2.20
'79 '84 '89 '94 '99 '04 '09 '14 '19
Last 3
years =
8%
www.ppg.com
Additional Materials
and Appendix
PPG Sherwin-
WilliamsAkzo Nobel RPM
Axalta
Coatings
Systems
Currency USD USD Euro USD USD
Sales 15,146 17,901 9,276 5,565 4,482
Income before taxes 1,661 1,982 785 340 330
Unusual or Infrequent
Charges312 *151 **150 ***126 ****95
Interest, net 100 349 **76 102 163
Depreciation &
Amortization511 575 **360 142 353
EBITDA, adjusted 2,584 3,057 1,371 710 941
% of Sales 17% 17% 15% 13% 21%
EBITDA as % of Sales (excluding specials):
2019 EBITDA Reconciliation
41
-Amounts in millions, except percentages, reflects most recent year-end from continuing operations. Compiled from publically available segment disclosures.
-For all years presented, PPG results from continuing operations, as disclosed in the most recent 10-K and Annual Report.
*Trademark impairment, integration costs and a pension plan settlement expense, which were partially offset by a Brazil indirect tax credit and a reduction in
the California litigation provision.
**As disclosed on page 76 of the Akzo Nobel 2019 Annual Report. Akzo Nobel adjusted EBITDA as a % of sales of 14%, excluding the impact of adoption of
IFRS 16.
***Adjustments as disclosed on slide 8 of the RPM 4th Quarter 2019 Reconciliation of Non-GAAP and Supplemental Information Presentation.
****Termination benefits, divestiture and impairment charges, strategic review and retention costs, offering and transaction costs, accelerated
depreciation and debt extinguishment and refinancing related costs.
PPG Sherwin-
WilliamsAkzo Nobel RPM
Axalta
Coatings
Systems
Currency USD USD Euro USD USD
Sales 15,374 17,534 9,256 5,322 4,696
Income before taxes 1,693 1,360 573 417 268
Unusual or Infrequent
Charges189 *499 **193 ***62 ****102
Interest, net 95 367 52 84 160
Depreciation &
Amortization497 596 239 128 369
EBITDA, adjusted 2,474 2,822 1,057 691 899
% of Sales 16% 16% 11% 13% 19%
EBITDA as % of Sales (excluding specials):
2018 EBITDA Reconciliation
42
-Amounts in millions, except percentages, reflects most recent year-end. Compiled from publically available segment disclosures.
-For all years presented, PPG results from continuing operations, as disclosed in the most recent 10-K and Annual Report.
-Akzo Nobel results from continuing operations as disclosed in the Q4 2018 earnings release.
-Axalta results presented as disclosed in the 2019 10-K.
*Integration costs, environmental expenses, California litigation expense, and pension plan settlement expense
**Identified items as disclosed on page 23 of the Akzo Nobel 2018 Annual Report
***Adjustments as disclosed on slide 8 of the RPM Fourth Quarter Results for Fiscal Year 2018 presentation
****Termination benefits, debt extinguishment and refinancing related costs, accelerated depreciation and offering and
transaction costs.
PPGSherwin-
WilliamsAkzo Nobel RPM
Axalta
Coatings
Systems
Currency USD USD Euro USD USD
Sales 14,748 14,984 9,612 4,958 4,377
Income before taxes 2,005 1,469 764 244 190
Unusual or Infrequent
Charges20 *186 -- **216 ***155
Interest, net 85 263 78 83 147
Depreciation &
Amortization460 492 276 117 348
EBITDA, adjusted 2,570 2,410 1,118 660 840
% of Sales 17% 16% 12% 13% 19%
EBITDA as % of Sales (excluding specials):
2017 EBITDA Reconciliation
43
-Amounts in millions, except percentages, reflects most recent year-end. Compiled from publically available segment disclosures.
-For all years presented, PPG results from continuing operations, as disclosed in the most recent 10-K and Annual Report.
-Akzo Nobel results from continuing operations as disclosed in the Q4 2017 earnings release.
-Sherwin-Williams results for 2017 have been adjusted for adoption of ASU 2017-01 as well as an inventory accounting change made in 2018.
-Axalta results presented as disclosed in the 2019 10-K.
*Transaction and integration related SG&A expense related to the acquisition of Valspar, in addition to inventory accounting change adjustment
**Goodwill impairment charge, charge to exit Flowcrete Middle East, and severance expense.
***Termination benefits, transition-related costs, Venezuelan foreign exchange losses and effects of deconsolidation impacts and
impairments.
EBITDA as % of Sales (excluding specials):
2016 EBITDA Reconciliation
44
-Amounts in millions, except percentages, reflects most recent year-end. Compiled from publically available segment disclosures.
-For all years presented, PPG results from continuing operations, as disclosed in the most recent 10-K and Annual Report.
-Akzo Nobel results from continuing operations as disclosed in the Q4 2017 earnings release.
-Axalta results have been updated for correction of immaterial errors as noted in the 2017 10-K report.
*Transaction and integration related SG&A expense related to the acquisition of Valspar.
**Reversal of Kirker earnout.
***Termination benefits, debt extinguishment and refinancing related costs, offering and transaction costs, Venezuelan foreign
exchange losses and effects of deconsolidation impacts and impairments.
PPGSherwin-
WilliamsAkzo Nobel RPM
Axalta
Coatings
Systems
Currency USD USD Euro USD USD
Sales 14,270 11,856 9,434 4,814 4,069
Income before taxes 779 1,595 850 483 83
Unusual or Infrequent
Charges1,234 *58 5 **(15) ***257
Interest, net 99 154 91 81 178
Depreciation &
Amortization440 198 282 111 322
EBITDA, adjusted 2,552 2,005 1,228 660 840
% of Sales 18% 17% 13% 14% 21%
EBITDA as % of Sales (excluding specials):
2015 EBITDA Reconciliation
45
-Amounts in millions, except percentages, reflects most recent year-end. Compiled from publically available segment disclosures.
-For all years presented, PPG results from continuing operations, as disclosed in the most recent 10-K and Annual Report.
-Akzo Nobel results from continuing operations (Paints & Coatings) with certain estimates based on 2016 recast data.
-Axalta results have been updated for correction of immaterial errors as noted in the 2017 10-K report.
*Termination benefits, transition-related costs, debt extinguishment and refinancing related costs, offering and transaction costs,
Venezuelan foreign exchange losses and effects of deconsolidation impacts and impairments.
PPGSherwin-
WilliamsAkzo Nobel RPM
Axalta
Coatings
Systems
Currency USD USD Euro USD USD
Sales 14,241 11,339 9,892 4,595 4,084
Income before taxes 1,745 1,549 992 453 158
Unusual or Infrequent
Charges198 -- 80 -- 116*
Interest, net 86 62 91 69 197
Depreciation &
Amortization446 198 306 99 308
EBITDA, adjusted 2,475 1,809 1,469 621 779
% of Sales 17% 16% 15% 14% 19%
(in millions, except percentages)
PPG**Sherwin
Williams
Akzo
NobelRPM
Axalta
Coatings
Systems
Currency USD USD Euro USD USD
Net Earnings as Reported 1,243 1,541 555 267 249
Total Net Adjustments, after-tax (see details below)* 237 115 143 96 72
Adjusted Net Earnings 1,480 1,656 698 363 321
Net Interest Expense, after-tax* 100 265 45 78 124
Adjusted Net Earnings + Net Interest Expense 1,580 1,921 743 441 445
Capital (Average Debt & Average Equity) as Reported 9,991 12,941 11,397 3,868 5,129
Net Adjustments (see above) 237 115 143 96 72
Adjusted Average Capital 10,460 13,056 11,540 3,964 5,201
Adjusted Return on Capital 15.1% 14.7% 6.4% 11.1% 8.6%
2019 Adjusted Return on Capital Reconciliation
46
Sources for Summary of Net Adjustments:
PPG: Net income impact of certain items as disclosed in the 2019 Form 10-K, page 22.
Sherwin-Williams: Net income impact of certain items of trademark impairment, integration costs and a pension plan settlement expense, which were
partially offset by a Brazil indirect tax credit and a reduction in the California litigation provision as noted in the Fourth Quarter and Full Year 2019
Operating Segments presentation slide 2. This calculation does not include the adjustment for acquisition-related amortization.
Akzo Nobel: Net income impact of identified items as disclosed on page 3 of the Akzo Nobel Q4 and full-year 2019 report.
RPM: Net income impact of certain items as disclosed on slide 8 of the RPM 4th Quarter 2019 Reconciliation of Non-GAAP and Supplemental
Information presentation.
Axalta Coatings Systems: Net income impact of certain items of termination benefits, divestiture and impairment charges, strategic review and retention
costs, offering and transaction costs, accelerated depreciation and debt extinguishment and refinancing related costs as noted in the Fourth Quarter and
Full Year 2019 Results press release, page 11.
*Tax impact calculated using a 24% tax rate, except for Akzo Nobel net adjustments.
**Does not foot due to the rounding effect of net adjustments.
2019 Quarterly Financial Results by Reportable SegmentPPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES (Continuing Operations)
BUSINESS SEGMENT INFORMATION (unaudited)
Q1 Q2 Q3 Q4 Full Year
2019 2019 2019 2019 2019
Net sales
Performance Coatings $ 2,108 $ 2,430 $ 2,313 $ 2,183 $ 9,034
Industrial Coatings 1,516 1,594 1,513 1,489 6,112
TOTAL $ 3,624 $ 4,024 $ 3,826 $ 3,672 $ 15,146
Segment income
Performance Coatings $ 297 $ 425 $ 380 $ 307 $ 1,409
Industrial Coatings 218 235 206 203 862
TOTAL 515 660 586 510 2,271
Items not allocated to segments
Corporate (45) (45) (43) (64) (197)
Interest expense, net of interest income (25) (28) (23) (24) (100)
Legacy items (2) 1 - - (1)
Environmental remediation charges, net (10) (30) (21) - (61)
Business restructuring-related costs, net (3) (182) (18) (19) (222)
Acquisition-related costs (7) (10) - - (17)
Litigation matters, net (4) (3) - (5) (12)
INCOME BEFORE INCOME TAXES $ 419 $ 363 $ 481 $ 398 $ 1,661
Amounts in Millions of USD
47
48
Full Year
2019
Full Year
2018
Net Income EPS(1) Net Income EPS(1)
Reported net income from continuing operations $ 1,243 $ 5.22 $ 1,323 $ 5.40
Business restructuring-related costs, net(2) 168 0.71 53 0.21
Environmental remediation charges, net 47 0.20 58 0.24
Acquisition-related costs 13 0.05 4 0.02
Litigation matters, net 9 0.04 19 0.08
Gain from the sale of a non-operating asset — — (20) (0.08)
Net tax benefit for Tax Cuts and Jobs Act legislation — — (13) (0.05)
Costs related to customer assortment changes — — 14 0.05
Impairment of a non-manufacturing asset — — 7 0.03
Brand rationalization charge — — 4 0.02
Adjusted net income from continuing operations, excluding
certain items(3)
$ 1,480 $ 6.22 $ 1,449 $ 5.92
PPG Reported and Adjusted EPS
$ in millions, except EPS
(1) Earnings per diluted share is calculated based on unrounded numbers. Figures in the table may not recalculate due to rounding.
(2) Included in business restructuring-related costs, net are business restructuring charges, accelerated depreciation of certain assets and other
related costs, offset by releases to previously approved programs.
(3) After-tax impact of foreign currency translation was $37 million, or $0.16 per diluted share for the year ended December 31, 2019.