2015 Shareholders Meeting

Transcription

1 2015 Shareholders Meeting PPG Industries, Inc. April 16, 2015

2 Key Topics Achievements in 2014 First Quarter 2015 Results Outlook and Focus 2 2

3 Improved 2014 Safety and Environmental Performance PPG Injury & Illness Rate Category II & III Spills and Releases Actual PPG Injury & Illness Rate PPG II/III Spill & Release Rate Improving Trend Continues Exemplary Performance 3 3

4 Achievements in 2014

5 Achieved Record Financial Results Record net sales from continuing operations of $15.4 billion, an increase of 8 percent Record adjusted earnings per diluted share from continuing operations of $9.75*, up 27 percent Record earnings from each major region Record cash flow of $1.8 billion from continuing operations *A reconciliation to the U.S. GAAP earnings per diluted share from continued operations is available in PPG s earnings release dated January 15,

6 Deployed Record Cash to Grow Company, Reward Shareholders Deployed more Sales than / Margin $4.1B to grow company and reward shareholders Sales $B PTPI $B 2014 Select Cash Uses PTPI / EPS* 100% = $4,135MM $361 $587 $750 $2,427* Capital Spending Share Repurchases * Excluding Specials Acquisitions Dividends *The figure is inclusive of acquired debt repaid. 6

7 Increased Capital Investments to Drive Global Growth $MM $240 Capital Spending (excl. acquisitions) $299 $330 $494 $587 Current Growth Projects: Cleveland, Ohio expansion Wichita Falls, Texas investment Zhangjiagang, China expansions San Juan del Rio, Mexico expansion Cheonan, Korea resin capacity Tianjin, China expansions Sumaré, Brazil resin capacity

8 PPG Investment and Growth in the Pittsburgh Region PPG Establishes Regional Headquarters for Architectural Coatings in Cranberry $2.7MM investment 118,000 sq. foot facility ~475 employees currently located at the new facility PPG Invests in New R&D Lab for Architectural Coatings within Harmar Facility $13MM investment Established 65,000 sq. ft. of new office and lab space ~70 Architectural Coatings employees in R&D and technical service 8

9 9 Expanded PPG Paints Branded Company-owned Stores More than 900 total company owned stores across U.S., Canada and Puerto Rico Approximately 630 PPG Paints stores in the U.S. 19 PPG Paints stores in Western Pennsylvania

10 Increased R&D Investments to Grow Innovation Pipeline R&D Expenditures Investing for Growth: 2010 $MM $371 $406 $444 $479 $509 Research and development investment averaged 3 percent of sales Aim to generate 25% of sales from new and innovative products

11 Completed Significant Strategic Actions Acquired Comex, leading architectural coatings supplier in Mexico Additional Acquisitions: Specialty coatings supplier, The Homax Group High-heat-resistant coatings supplier, Hi-Temp Coatings Panama-based protective and marine coatings distributor, Canal Supplies N.A. architectural dealers Westmoreland Supply, Masterwork Paint Company and Painter s Supply Hi-Temp Divestitures: Ownership interest in Transitions Optical Mt. Zion, Illinois (U.S.A.) flat glass facility 11

12 Continued PPG s Transformation PPG Net Sales % = $9.5B Glass % = $12.2B Glass % = $15.4B Glass Chemicals Coatings Specialty Materials Chemicals Coatings Coatings Specialty Materials Coatings 55% Coatings 74% Coatings 93% 12

13 PPG Continues to Deliver Strong Shareholder Returns Comparison of Five-Year Total Return Indexed to PPG Peer Group S&P '09 '10 '11 '12 '13 '14 PPG S&P Peer 500 Group Peer S&P Group PPG * Peer Group includes AkzoNobel, The Dow Chemical Co., Eastman Chemical Co., E.I. DuPont de Nemours & Co., Masco Corp., RPM International Inc., The 3M Company, The Sherwin-Williams Co. and The Valspar Corp. 13

14 2014 Recap: Another Successful and Transformational Year Strengthened our global coatings leadership position Achieved record financial results Continued the portfolio transformation Comex acquisition Transitions ownership divestiture Increased our capital investment to drive organic growth Stock price increased by 22% to $ at 12/31/14 10% dividend increase 14

15 First Quarter 2015 Results

16 First Quarter 2015 results (millions except per share data) Q Q Net sales (continuing operations) $3,662 $3,636 Net income attributable to PPG (continuing operations) $321 $277 Nonrecurring charges (continuing operations) $6 $2 Adjusted net income attributable to PPG (continuing operations) $327 $279 Earnings per diluted share (continuing operations) $2.33 $1.97 Adjusted earnings per diluted share (continuing operations) $2.37 $1.98 *A reconciliation to the U.S. GAAP earnings per diluted share from continued operations is available in PPG s earnings release dated April 16,

17 Strategic Actions in 2015 Acquired REVOCOAT, a global supplier of sealants, adhesives and damper products for the automotive industry Submitted offer to acquire a majority interest in the aerospace and automotive sealants businesses of Le Joint Français (LJF) Completed $40 million expansion project at Sumaré, Sao Paulo, Brazil, coatings manufacturing facility 17

18 Outlook and Focus

19 2015 Regional Economic Outlook North America Regional economic growth continues Europe Continued recovery and improving market conditions Regional currency weakness Asia Pacific Growth rates moderating Strong automotive outlook South America Mixed outlook by country Currency volatility 19

20 Our Vision 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 products and surroundings. 20

21 Our Mission Act with integrity at all times and be true to our values and ethics. Deliver consistent sales and earnings growth. Develop innovative products to meet future needs. Work safely, protect the environment and support the communities where we operate. Achieve superior shareholder returns. 21

22 Our Strategy To strengthen our position as the world s leading coatings company. Growth Deliver consistent volume growth. Expand in markets and regions where we are underrepresented. Continue to lead the consolidation of the coatings industry. Invest in building the PPG and product specific brands. Operational Excellence Maintain a strong focus on cost management and profit improvement. Optimize supply chain and continuously improve working capital management. Products and Services Develop innovative solutions to address our customers greatest needs. Expand our global color expertise. Provide exceptional customer service and support. 22

23 PPG Continues Focus On Sustainability 23

24 2015 Shareholders Meeting PPG Industries, Inc. April 16, 2015