PPG Investor Overview

Transcription

1 PPG Investor Overview

2 Notes 2

3 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 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. Forwardlooking 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 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 PPG s 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 PPG s 2015 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. 3

4 We are a global leader in paints and coatings 4

5 PPG: Our employees protect and beautify the world A global maker of paints, coatings, and materials, with full-year net sales of $15.3 billion in 2015 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 198 5

6 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 17% 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 44 th consecutive year Deployed $750MM for share repurchases 6 * See appendix for adjusted EPS trend reconciliation

7 Accelerating the portfolio transformation 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 PPG s majority interest in Transitions Optical joint venture ($0.8 billion annual sales) Acquisition of Comex Mexico ($1.0 billion annual sales) strategic coatings bolt-on acquisitions ($400 million annual sales) REVOCOAT, IVC Industrial, LeJoint Français, Cuming Microwave, Consorcio LatinAmericano, Chemfil Canada Significant increase in coatings via strategic portfolio actions 7

8 Our portfolio transformation 2005 $10.2B 2015 $15.3B 7% 22% Net Sales* 55% 23% Paint and Coatings Chemicals Glass 93% Paints and Coatings = $5.6B Paints and Coatings = $14.2B Significant transactions accelerate portfolio optimization 8 Acquisitions: SigmaKalon (2008), AkzoNobel N.A. Architectural (2013), Comex (2014) Divestitures: Commodity Chemicals (2013), Transitions Optical (2014) *Sales from Continuing Operations as originally reported

9 Notable PPG acquisitions Present 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 Acquired From Int l Polarizer Crown Coatings Iowa Paint Shanghai Sunpool Intercast Eldorado Ameron Dongju (Asia) Protec (Asia) Sierracin Renner Sayerlack ICI India (Asia) Barloworld (Asia) Optical Industrial Business Architectural Architectural Optical Aerospace PMC Industrial Refinish Aerospace Architectural Refinish Architectural SigmaKalon Arch./ PMC / Industrial Bonny (Asia) BASF Coil (N/A) Refinish Industrial Total Sales Value ~$4.5B Acquired From Bairun (Asia) Dyrup Ducol (S. Africa) Colpisa (Columbia) Spraylat Akzo Nobel Deft Canal Supplies Homax Comex (Mexico) Le Joint Francais Revocoat Consorcio Latinamericano Cuming Microwave IVC Business Packaging Architectural Refinish Auto OEM/Refinish Industrial N. America Architectural Aerospace Protective Architectural Architectural Aero/Auto OEM Auto OEM Architectural Aerospace Industrial Total Sales Value ~$3.7B 9 Experienced global acquirer with excellent track record

10 Acquisitions contribute to sales growth $4,000 $3,500 $3,000 Acquisition Sales Growth Over Prior Year Notable acquisitions: 2008 SigmaKalon 2013 Akzo Nobel NA 2014/5 Comex (partial years) $2,500 $2,000 $1,500 +6% average sales growth from acquisitions $1,000 $500 $0 (USD MM) Acquisitions supplement organic growth 10

11 Index Strengthened business portfolio 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% PPG Segment Net Sales* 93% 55% ~$10.2B ~$15.3B Coatings Optical & Specialty Commodity Chemicals Glass Coatings Segments Earnings Growth (Indexed to 2005) * CAGR = 11% 2005 '06 '07 '08 '09 '10 '11 '12 '13 ' Portfolio shift to coatings end-use markets drives earnings growth * As originally reported, not adjusted for divestitures. 11

12 PPG s transformation 2005 $10.2B 2% Net Sales* $15.3B 6% 10% 20% U.S. & Canada EMEA Asia/Pacific 16% 46% Latin America 72% 28% Emerging Regions = 8% Emerging Regions = 26% Improved geographic profile with growing emerging regions * As originally reported, not adjusted for divestitures. Sales in USD, EMEA includes Europe, Middle East, and Africa 12

13 Global paint and coatings industry (~$130B) Competitive Landscape Other PPG is a leader in industry consolidation with many smaller competitors Recent Notable Coatings Transaction/Consolidation Activity: PPG SigmaKalon (2008) PPG AkzoNobel N.A. architectural Coatings (2013) PPG Comex Mexico (2014) AkzoNobel ICI (2008) Sherwin Williams Comex (U.S. and Canada only) Axalta Former Dupont Coatings Business (2013) Valspar Wattyl, Ace, Inver, Quest (2010/2013/2013/2015) Sherwin to acquire Valspar (2016) - Pending 13 Source: Orr and Boss; Company Annual Reports; PPG estimates

14 Coatings geographic mix Coatings Industry Geographic Sales Mix PPG Coatings Geographic Net Sales Mix Latin America 8% U.S. & Canada 17% Latin America 10% Asia Pacific 43% EMEA 32% Asia/Pacific 17% U.S & Canada 44% EMEA 29% Source: Kusumgar, Nerlfi, & Growney; Company Annual Reports; PPG estimates 14 PPG Considerable growth opportunities remain EMEA includes Europe, Middle East, and Africa

15 PPG end-use markets Approximate % of Total PPG Net Sales* Aerospace and Marine (New & Aftermarket), 10% General Industrial, 15% Automotive OEM & Aftermarket, 30% Construction - New & Maintenance, 45% Diverse end-use markets 15

16 PPG paint and coatings overview Why coatings? Stable earnings/cash Growth potential Low capital intensity Technology & service Consolidating industry Aggregate Coatings Segment Earnings 2,500 ($MM) +133% 2,000 1,500 1, '08 '09 '10 '11 '12 '13 ' Good Growth; Rapid Recovery From Recession PPG Coatings Net Sales (US$B) $13 $12 $11 $10 $9 $8 $7 $6 $5 $4 16 Includes Acquisitions CAGR = 9% 2004 '06 '08 '10 ' PPG Coatings Net Sales Orientation After-market / Maintenance Coatings 50% 50% Balanced Sales Orientation OEM Coatings

17 PPG global market positions Position by Coatings Vertical Lower <---- Level of Consolidation ----> Higher Global Position PPG #1 Arch ~$56B General Industrial ~$36B Protective & Marine ~$16B Refinish / Collision ~$8B Auto OEM ~$10B Packaging ~$3B Aerospace ~$1B Participation in all end-use markets Participation in all end-use markets AkzoNobel #2 Sherwin Williams #3 Valspar #5 Axalta #7 BASF #8 #1 Market Position #2 Market Position #3 Market Position #4+ Market Position No Meaningful Presence PPG growth opportunity: To be #1 or #2 in every country/vertical Source: Orr and Boss; company annual reports, PPG estimates 17 Source: Orr and Boss; Company Annual Reports; PPG estimates

18 Coatings end-use markets Industry End-Market Demand (~$130B Sales Value) Aerospace 1% Packaging 2% PPG Coatings End-Use Net Sales Mix Architectural Coatings Refinish 6% Auto OEM 8% Protective & Marine 12% Architectural 43% 60% 40% General Industrial 28% Source: Kusumgar, Nerlfi, & Growney; Company Annual Reports; PPG estimates Special-Purpose Coatings: Aerospace General Industrial Automotive OEM Protective & Marine Automotive Refinish Packaging Specialty Coatings & Materials PPG is in line with the global coatings industry end-use mix 18

19 Coatings Peers EBITDA % 2015 Full Year EBITDA as % of Net Sales 22.0% 20.0% 18.0% 16.0% 14.0% 17.3% 19.0% 16.3% 16.0% 13.8% 14.2% 14.4% 18.4% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% PPG remains a margin leader across coatings sector end-use markets 19 EBITDA from continuing operations as percent of sales as reported in company reports (excluding unusual items); See Appendix for reconciliations.

20 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 Flat Glass 2015 PPG Net Sales Mix 7% 36% 57% Performance Coatings Industrial Coatings Glass 20

21 Performance coatings segment Strategic Business Units: Automotive Refinish Aerospace Architectural Americas & Asia Pacific Architectural EMEA Protective & Marine Segment Traits: Distribution focus Solid operating margins Consistent cash Stable industries EMEA includes Europe, Middle East, and Africa Net Sales (US$B) Incl. Acquisitions $9.0 $8.0 $7.0 $6.0 $5.0 $4.0 $3.0 CAGR = 11% 15% 10% 5% Segment Operating Margins 12.6% 12.9% 13.1% 13.9% 14.9% 11.2% 11.8% $ % Acquisition-Related

22 Automotive refinish coatings Net Sales Incl. Acquisitions CAGR = 2% Key Industry Trends: Emerging regions growth Technology shift to waterbase Customer service requirement Marketplace approach PPG Refinish Sales 2015 Asia 20% Latin America 4% PPG Global Waterbase Paint Shops CAGR = 14% EMEA 29% US & Canada 47% EMEA includes Europe, Middle East, and Africa

23 Aerospace Net Sales Incl. Acquisitions CAGR = 5% Aerospace Products Coatings Sealants Transparencies '07 '08 '09 '10 '11 '12 '13 ' Aerospace Net Sales Mix Aftermarket 50% 50% OEM Recent Acquisitions 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

24 Protective & Marine Coatings (PMC) Net Sales Incl. Acquisitions PPG PMC Net Sales 2015 Latin America Asia U.S. & Canada EMEA '07 '08 '09 '10 '11 '12 '13 ' PMC Industry Segments ($B) Ind. Maint. Energy Infrastructure Marine Aftermarket Marine OEM EMEA includes Europe, Middle East, and Africa 100% 75% 50% 25% 0% PPG Net Sales Mix Aftermarket OEM 70% Marine OEM / Aftermarket Protective Coatings

25 Architectural Coatings (Americas & Asia) Net Sales Incl. Acquisitions CAGR = 13% , PPG U.S. & Canada Architectural Store Count Current PPG U.S. Architectural Net Sales Mixes PPG Architectural Coatings U.S. & Canada Net Sales Mix 75% Maintenance / Repaint 25% New Construction Company Stores, 40% National Retailers (DIY), 40% Residential Non- Residential 65% 35% 0% 25% 50% 75% 100% 25 Independent Dealers, 20%

26 PPG architectural store network has room to grow 26 PPG can expand across U.S. & Canada without cannibalization

27 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 27 Concessionaire Network Consistent and Strong Growth Concessionaire goal: 1 store per 20k people Current density: 1 store per 30k people Network New store openings Develop low share territories Penetrate key segments Purchase experience Develop categories and brand / channel Operational Network Comex Distribution Comex Plant 8 Manufacturing Plants 6 Distribution Centers 3,900 Employees

28 Comex financial targets Target Status Cost/operational earnings synergies exceeding targets (increased June 2015) $45-50MM Incremental revenue synergies from PPG legacy products (announced June 2015) $40-50MM On-track Central America regional revenue synergy target (5 year) (announced June 2015) $60-70MM On-track Comex acquisition is exceeding expectations 28

29 Architectural Coatings EMEA Net Sales Incl. Acquisitions End-Use Market Demand millions New Construction, 20% Maintenance, 80% More Stability in End- Market EMEA includes Europe, Middle East, and Africa Strong Market Positions #1 or #2 in 80% of Penetrated Markets 700 Source: Company Estimates Company-Owned Stores 600 #1 PPG Position #2 PPG Position #3 PPG Position >#3 PPG Position No PPG Participation

30 Sales Industrial Coatings Segment Strategic Businesses Automotive OEM Industrial Packaging Specialty Coatings & Materials Segment Net Sales Mix EMEA Asia LA U.S. & Canada $6.0 $5.0 $4.0 Net Sales (US$B) Incl. Acquisitions CAGR = 6% EMEA includes Europe, Middle East, and Africa $6,000 $5,000 $4,000 $3,000 $2,000 Segment Results 20% 18% 16% 14% 12% 10% 8% 6% EBIT Margin $3.0 $1,000 4% 2% $ '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 $0 US$MM Sales Margin 0%

31 Automotive OEM Coatings Net Sales Incl. Acquisitions CAGR = 5% PPG Automotive OEM Coatings LA Asia U.S. & Canada EMEA 2006 '07 '08 '09 '10 '11 '12 '13 ' Global Auto OEM Production +1.5% EMEA includes Europe, Middle East, and Africa PPG Auto OEM Coatings Customer Mix MM Units '09 '10 '11 '12 '13 ' All Remaining Customers U.S. Based Top 7 PPG Auto OEM Customers Non-U.S. Based

32 Industrial Coatings SBU Net Sales Incl. Acquisitions CAGR = 5% Industrial Coatings SBU Net Sales Mix LA Asia U.S. & Canada EMEA '07 '08 '09 '10 '11 '12 '13 ' Fragmented but Consolidating Industry PPG Akzo Nobel Valspar EMEA includes Europe, Middle East, and Africa PPG Asian Industrial Coatings SBU Net Sales CAGR = 14% Source: PPG Estimates 32 Others 60% Nippon Henkel Axalta Sherwin Williams Beckers BASF 2004 '06 '08 '10 '

33 Packaging Coatings Net Sales Incl. Acquisitions CAGR = 3% Annual Beverage Can Consumption '09 ' Industry Container Use 250 Other Beverage Other Interior MM/ Day Food Ends Exterior 33 Source: PPG Estimates

34 Specialty Coatings & Materials Net Sales Incl. Acquisitions CAGR = 5% HVA Tire (High-Value-Added) high silica content tread 2008 '09 '10 '11 '12 '13 ' Key PPG Products / End-Use Markets Silica Tires and battery separators, various industrial uses Teslin Printing materials, RFID, various industrial and consumer uses OLED Electronics Monomers and Dyes Optical RFID Pressure Sensitive Adhesive 34

35 Sales Glass Segment Segment Financial Results 4,000 Headcount $1,200 14% 3,800 3,600 $1,000 12% 3,400 $800 10% 3,200 3,000 $600 $400 $200 8% 6% 4% 2% Margin 2, Cumulative Manufacturing/Cost Savings $0 (USD MM) Sales Margin 0% 50 0 (USD MM) Ongoing cost management; increased asset utilization

36 Innovation Drives Success Research & Development Expenditures ($MM) $403 $443 $444 $479 $509 $505 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 $0 $200 $400 $600 ~3% of sales annually Defensible Positions Sustainable Innovation Aerospace Aircraft Fuel Efficiencies PPG s 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 New Product Sales Crossindustry synergies 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 36

37 Volume and earnings growth trends $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 PPG Regional Earnings New Regional Record (excl. currency impact) U.S. and Canada EMEA Emerging Regions 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% PPG Coatings Volume Trend* (Indexed to 2008) -15% -20% -6% 25% 1% -17% U.S. & Canada EMEA Emerging Regions * As originally reported, not adjusted for segment reporting changes. Strong segment earnings; significant volume leverage remaining 37 EMEA includes Europe, Middle East, and Africa

38 PPG adjusted earnings per diluted share trend $6.00 $5.69 Key Drivers $5.50 $5.00 $4.50 $4.00 $3.83 $4.88 Global business expansion Innovation-led organic growth Ongoing, aggressive cost management $3.50 Ongoing and disciplined cash deployment $3.00 $2.50 $2.44 $2.92 Acquisitions & synergies Share repurchases $2.00 Transformed portfolio and accretive cash deployment drive earnings growth 38 * Adjusted Earnings Per Diluted Share from Continuing Operations See appendix for reconciliations to reported EPS

39 Coatings cost comparison Raw material basket and manufacturing/distribution costs are different Average Architectural Coatings Average Industrial Coatings Industry estimates figures vary greatly by end-use and application Distribution - final Distribution - intermediate Distribution - final Packaging Manufacturing Packaging Additives Manufacturing Additives Solvents and Pigments Solvents and Pigments Sold in 2,000 Liter Totes Sold in 1 Gallon Paint Cans And 5 Gallon Buckets Resins and Latex Resins and Latex Titanium Dioxide Titanium Dioxide 39 Source: PPG Estimates

40 22.0% 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 40 Coatings Peers EBITDA % 16.2% 17.9% 17.0% 19.0% PPG Coatings Segments Full Year EBITDA as % of Net Sales 16.3% 15.4% 15.0% 15.0% Total Valspar 11.9% 13.9% 13.6% 14.4% 13.9% 13.8% 13.3% 12.6% 11.9% 12.4% 12.4% EBITDA from continuing operations as percent of sales as reported in company reports (excluding unusual items); See Appendix for reconciliations. 16.0% Total Sherwin Williams Akzo Paints/Coatings Consistent coatings industry margin expansion Total RPM N/A 17.2% 18.4% Total Axalta

41 Coatings companies net sales growth 150% 145% 140% 135% 130% 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% 131% 130% 146% 143% 140% 140% 140% 136% 135% 125% 122% 125% 127% 128% 120% 123% 115% 113% 114% 120% 110% 105% 110% 111% 101% 100% PPG Coatings Sherwin Valspar RPM 41 EBITDA from continuing operations as percent of sales as reported in company reports (excluding unusual items); See Appendix for reconciliations.

42 Coatings companies EBITDA growth 200% EBITDA CAGR 3-Year 5-Year 198% 190% PPG Coatings 12.7% 11.8% 180% Sherwin-Williams 17.0% 14.3% 175% 170% 160% 150% Valspar 5.8% 9.2% RPM 10.4% 9.4% 150% 167% 165% 151% 165% 154% 140% 145% 131% 144% 130% 122% 133% 120% 122% 125% 111% 106% 110% 116% 100% 104% 103% PPG Coatings Sherwin Valspar RPM 42 EBITDA from continuing operations as percent of sales as reported in company reports (excluding unusual items); See Appendix for reconciliations.

43 Strong pricing discipline continues 5.00% Year-Over-Year Aggregate PPG Pricing 4.00% 3.00% 2.00% 1.00% 0.00% 2005 '06 '07 '08 '09 '10 '11 '12 '13 ' % of Prior Year Sales 43 As originally reported, not adjusted for segment reporting changes Higher pricing to counter global inflation

44 PPG Europe, Middle East and Africa 44 Broad regional footprint to supply future demand growth

45 Sales Earnings Total PPG Europe, Middle East and Africa 4,500 PPG Net Sales Mix 500 Local Currency Earnings 13% 4,000 12% 3, % 3,000 2,500 2,000 1, % 9% 8% 7% EBIT Margin on Sales 1, % 500 5% 0 EUR MM 2009 '10 '11 '12 '13 ' EUR MM 2009 '10 '11 '12 '13 ' % Architectural Coatings EMEA Other PPG Businesses Record European earnings despite difficult economic conditions the past several years 45

46 PPG Asia Pacific Manufacturing Footprint India Faaber** Sriperumbudur** Moraiya** Thailand Bangplee Vietnam Korea Cheonan Busan Ulsan** Japan Nagoya Taiwan Alltech Taoyuan Chia Yi** Philipines China Tianjin Tianjin Suzhou Suzhou Suzhou Foshan Wuhu Zhangjiagang Songjiang Jiading Kunshan Wuhan Nansha Kunshan** Malaysia Petaling Jaya Indonesia Jakarta Australia Clayton Adelaide Villawood New Zealand Auckland ** Joint Venture 46 Extensive region-wide coverage

47 PPG Asia Pacific financials Consolidated Net Sales* $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 1,689 5% CAGR 2,297 2, Segment Income* 14% $400 CAGR $ $200 $100 $0 $MM - USD * Restated for discontinued operations Significant profitable growth over time

48 Strong and growing Asian presence (excl. Japan) Industry Coatings Demand for Asia 13% 12% 7% 5% China 63% India Southeast Asia Korea Australia PPG Asia Net Sales Mix (2015) Performance Industrial Industrial Automotive OEM General Industrial Packaging Performance Auto Refinish Protective & Marine Aerospace Architectural Broad, full coatings business portfolio Coatings Industry in Asia Remains Fragmented Others 59% Akzo 9% Nippon 7% PPG 6% Asian Paints 5% Kansai 3% Dulux 2% Axalta 2% Valspar 3% Jotun 2% BASF 2% Many Leading Asia Market (excl. Japan) PPG Market Position PPG 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% 48 Sources: PPG Internal estimates (excludes Japan includes ARCH)

49 PPG cash trends $2,000 Cash From Operations * $3,000 Cash & Short Term Investments $1,750 $2,500 $2,000 $1,978 $2,393 $1,745 $1,500 $1,500 $1,482 $1,455 $1,183 $1,000 $1,250 $500 $1, '10 '11 '12 '13 ' Millions USD *As originally reported, not adjusted for business divestitures $0 YE'10 YE'11 YE'12 YE'13 YE'14 YE'15 49 Robust cash generation over time

50 Balanced cash deployment Approximate 2015 Cash Uses Past 10 Years (~$20B) ( ) $475 Capital Spending 23% 20% $750 Acquisitions $385 $400 Dividends Share Repurchases 18% 39% Cash Use Summary: Grow Business ~60% Return to Shareholders ~40% Millions of USD As reported, not adjusted for business divestitures 50 Legacy of consistent and prudent cash deployment

51 Return on Capital Capital ($MM) PPG return on capital (adjusted)* 20.0% 18.0% 16.0% 14.0% 19.1% 16.9% 17.2% 14.0% 16.6% 18.3% 17.2% 16.1% 16.0% 10,000 9,000 8,000 7, % 11.3% 6, % 8.0% 6.0% 4.0% 2.0% 0.0% 8.5% ,000 4,000 3,000 2,000 1,000 0 Capital Return on Capital ROC growth demonstrates successful acquisition integration 51 * Adjusted to exclude certain non-recurring charges, see appendix for reconciliation. All years as originally reported, not adjusted for business divestitures.

52 PPG financial hallmarks 14% 12% 10% 8% 6% 4% 2% Capital Spending as % of Sales (As originally reported, not adjusted for business 13% 7% divestitures) 3% 3% 3% Last 6 Year Average = ~3.0% 2% 2% 3% 4% 3% Long-Term Debt Maturity Schedule USD Notes EUR Notes 0% '02 '04 '06 '08 '10 '12 '14 '15 44 Years of Increased Dividends Dividends per share Adjusted for stock splits US$MM $1,000 $800 $600 $400 PPG Share Repurchases Average ~$467MM Average ~$690MM '78 '81 '84 '87 '90 '93 '96 '99 '02 '05 '08 '11 '14 $200 US$MM $ '07 '09 '11 '

53 PPG shared services centers Brno, Czech Republic Ohio Tianjin, China Mexico City, Mexico Kuala Lumpur, Malaysia 53

54 Additional Materials and Appendix

55 Adjusted Net Earnings Full Year * 2012* 2011* 2010* Net Earnings as Reported $1,405 $1,133 $1,034 $941 $1,095 $769 Adjustments: Debt refinancing charge Business restructuring charge Equity affiliate debt refinancing charge Transaction-related costs Environmental remediation charge Legacy pension settlement loss 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 *Amounts in Millions of USD Not adjusted for Commodity Chemicals separation or Transitions divestiture for comparative purposes 55

56 Adjusted Net Earnings FULL YEAR Net Earnings as Reported $336 $538 $834 $711 $596 Adjustments: Business restructuring charge Divestiture-related costs Acquisition-related costs Environmental Charge Legal Settlement Debt Refinancing Impairments/Other Total Net Adjustments $141 $219 $34 $131 $167 Adjusted Net Earnings $477 $757 $868 $842 $763 Amounts in Millions of USD Not recast to reflect discontinued operations presentation 56

57 2015 EBITDA Reconciliation EBITDA as % of Sales (excluding specials): 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 15,330 14,241 11,339 4,392 4,595 14,859 9,962 4,087 Segment Income/Net Income Unusual Charges 1,405 2,287 1, ,060 1, (22) -- (111) 0 86* Income Taxes Interest Depreciation & Amortization EBITDA 2,648 2,707 1, ,105 1, % of Sales 17.3% 19.0% 16.0% 16.3% 13.8% 14.2% 14.4% 18.4% Amounts in millions, except percentages, reflects most recent year-end * Excludes foreign exchange remeasurement losses & recurring stock-based compensation 57

58 2014 EBITDA Reconciliation EBITDA as % of Sales (excluding specials): 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 Income Unusual Charges 1,133 2, * Income Taxes Interest Depreciation & Amortization EBITDA 2,413 2,557 1, ,964 1, % of Sales 15.7% 17.9% 13.9% 15.4% 12.9% 13.7% 13.9% 17.2% Amounts in millions, except percentages, reflects most recent year-end * Excludes foreign exchange remeasurement losses & recurring stock-based compensation 58

59 2013 EBITDA Reconciliation EBITDA as % of Sales (excluding specials): PPG Total Total Coatings Sherwin PPG Segments 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 Unusual Charges 950 1, Income Taxes Interest Depreciation & Amortization EBITDA 2,150 2,244 1, ,861 1,232 % of Sales 15.1% 17.0% 13.6% 15.0% 12.4% 12.8% 12.6% Amounts in millions, except percentages, reflects most recent year-end 59

60 2012 EBITDA Reconciliation EBITDA as % of Sales (excluding specials): PPG Total Total Coatings Sherwin PPG Segments 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 Unusual Charges 663 1, (1,593) , Income Taxes Interest Depreciation & Amortization EBITDA 1,829 1,890 1, ,889 1,187 % of Sales 14.4% 16.2% 11.9% 15.0% 12.4% 12.3% 11.9% Amounts in millions, except percentages, reflects most recent year-end 60

61 Adjusted EPS Reconciliation 1 st Quarter Reporting Period Continuing Operations Discontinued Operations Total PPG Net Income EPS Net Income EPS Net Income EPS Year 2016 Net Income Attributable to PPG as Reported $ 347 $ 1.29 $ -- $ -- $ 347 $ 1.29 Transaction-related costs Asset write-down Adjusted Net Income Attributable to PPG $ 351 $ 1.31 $ -- $ -- $ 351 $ 1.31 Year 2015 Net Income Attributable to PPG as Reported $ 321 $ 1.16 $ 1 $ 0.01 $ 322 $ 1.17 Transaction-related costs Adjusted Net Income Attributable to PPG $ 327 $ 1.18 $ 1 $ 0.01 $ 328 $ 1.19 Year 2014 Net Income Attributable to PPG as Reported $ 277 $ 0.98 $ 985 $ 3.50 $ 1,262 $ 4.48 Transaction-related costs Adjusted Net Income Attributable to PPG $ 279 $ 0.99 $ 985 $ 3.50 $ 1,264 $ 4.49 Year 2013 Net Income Attributable to PPG as Reported $ 191 $ 0.64 $ 2,219 $ 7.51 $ 2,410 $ 8.15 Legacy pension costs Environmental costs Transaction-related costs U.S. tax law change enacted in 2013 (10) (0.03) (10) (0.03) Adjusted Net Income Attributable to PPG $ 207 $ 0.69 $ 2,219 $ 7.51 $ 2,426 $ 8.20 Year 2012 Net Income/(Loss) Attributable to PPG as Reported $ (49) $ (0.16) $ 61 $ 0.20 $ 12 $ 0.04 Business restructuring Environmental reserves Transaction-related costs Adjusted Net Income Attributable to PPG $ 191 $ 0.62 $ 87 $ 0.28 $ 278 $ 0.90 Year 2011 (No adjustments) Amounts in Millions of USD except EPS 61

62 Adjusted EPS Reconciliation 2 nd Quarter Reporting Period Continuing Operations Discontinued Operations Total PPG Net Income EPS Net Income EPS Net Income EPS Year 2015 Net Income/(Loss) Attributable to PPG as Reported $ 337 $ $ 337 $ 1.23 Transaction-related costs Business restructuring charge Adjusted Net Income/(Loss) Attributable to PPG $ 458 $ $ 458 $ 1.67 Year 2014 Net Income/(Loss) Attributable to PPG as Reported $ 393 $ 1.40 $ (7) $ (0.02) $ 386 $ 1.38 Pension settlement charge Transaction-related costs Adjusted Net Income/(Loss) Attributable to PPG $ 398 $ 1.42 $ (7) $ (0.02) $ 391 $ 1.40 Year 2013 Net Income/(Loss) Attributable to PPG as Reported $ 318 $ 1.09 $ 23 $ 0.08 $ 341 $ 1.17 Transaction-related costs Adjusted Net Income/(Loss) Attributable to PPG $ 331 $ 1.14 $ 25 $ 0.09 $ 356 $ 1.23 Year 2012 Net Income/(Loss) Attributable to PPG as Reported $ 266 $ 0.86 $ 96 $ 0.31 $ 362 $ 1.17 Business separation costs Adjusted Net Income/(Loss) Attributable to PPG $ 266 $ 0.86 $ 99 $ 0.32 $ 365 $ 1.18 Year 2011 (no adjustments) 62 Amounts in Millions of USD except EPS

63 Adjusted EPS Reconciliation 3 rd Quarter Reporting Period Continuing Operations Discontinued Operations Total PPG Net Income EPS Net Income EPS Net Income EPS Year 2015 Net Income Attributable to PPG as Reported $ 433 $ $ 433 $ 1.59 Transaction-related costs Pension settlement charge Adjusted Net Income/(Loss) Attributable to PPG $ 439 $ $ 439 $ 1.61 Year 2014 Net Income/(Loss) Attributable to PPG as Reported $ 377 $ 1.35 $ (6) $ (0.02) $ 371 $ 1.33 Transaction-related costs Pension settlement charge Legacy environmental reserves Gain on asset sales (73) (0.26) (73) (0.26) Adjusted Net Income/(Loss) Attributable to PPG $ 394 $ 1.41 $ (6) $ (0.02) $ 388 $ 1.39 Year 2013 Net Income/(Loss) Attributable to PPG as Reported $ 204 $ 0.70 $ 22 $ 0.08 $ 226 $ 0.78 Transaction-related costs Legacy environmental reserves Business restructuring Adjusted Net Income/(Loss) Attributable to PPG $ 336 $ 1.15 $ 23 $ 0.08 $ 359 $ 1.23 Year 2012 Net Income/(Loss) Attributable to PPG as Reported $ 269 $ 0.86 $ 70 $ 0.23 $ 339 $ 1.09 Business separation costs Adjusted Net Income/(Loss) Attributable to PPG $ 269 $ 0.86 $ 79 $ 0.26 $ 348 $ 1.12 Year 2011 (no adjustments) 63 Amounts in Millions of USD except EPS

64 64

65 PPG Adjusted Earnings Per Share Trend Reconciliation Adjusted EPS from Continuing Operations Period Y-O-Y Change in Adjusted EPS from Continuing Operations 2012 vs vs vs vs vs Q $ 0.44 $ 0.62 $ 0.69 $ 0.99 $ 1.18 $ 1.31 $ 0.18 $ 0.07 $ 0.30 $ 0.19 $ Q Q Q Full Year* $ 2.44 $ 2.92 $ 3.83 $ 4.88 $ $ 0.48 $ 0.91 $ 1.05 $ Year over year percentage increase in EPS +20% +31% +27% +17% +11% *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. Amounts in Millions of USD except EPS 65

66 Adjusted Return on Capital Full Year * 2012* 2011* 2010* Adjusted Net Earnings $1,555 $1,364 $1,202 $1,230 $1,095 $854 Net Interest Expense (aftertax) Adjusted Net Earnings + Net Interest Expense $1,650 $1,507 $1,351 $1,387 $1,253 $994 Capital (Average Debt & Average Equity) as Reported Net Adjustment (see Net Earnings Reconciliations) $9,515 $9,200 $8,212 $7,371 $7,526 $6, 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% *Amounts in Millions of USD Not adjusted for Commodity Chemicals separation or Transitions divestiture for comparative purposes **This table does not foot due to the averaging effect of Net Adjustments 66

67 Adjusted Return on Capital Full Year Adjusted Net Earnings $477 $757 $868 $842 $763 Net Interest Expense (after-tax) Adjusted Net Earnings + Net Interest Expense $612 $932 $934 $903 $820 Capital (Average Debt & Average Equity) as Reported Net Adjustment (see Net Earnings Reconciliations) $7,088 $8,053 $5,403 $4,587 $4, 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% 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 67

68 2015 Quarterly Financial Results by Reportable Segment PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES (Continuing Operations) BUSINESS SEGMENT INFORMATION (unaudited) Q1 Q2 Q3 Q4 Full Year 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 ,089 TOTAL $ 3,662 $ 4,100 $ 3,872 $ 3,696 $ 15,330 Segment income Performance Coatings $ 262 $ 411 $ 379 $ 250 $ 1,302 Industrial Coatings Glass TOTAL ,424 Items not allocated to segments Legacy items (12) (6) (14) (13) (45) Transaction-related costs (9) (21) (1) (17) (48) Business restructuring - (140) - - (140) Interest expense, net of interest income (18) (24) (21) (23) (86) Other corporate expense (67) (65) (35) (56) (223) INCOME BEFORE INCOME TAXES $ 430 $ 452 $ 581 $ 419 $ 1,882 Amounts in Millions of USD 68

69 Thank you for your interest in PPG Industries, Inc. Contact Information: Investors: Scott Minder (412)

70

71 Notes 71

72 Notes 72