[Please refer to Appendix. PPG Industries, Inc. (PPG) Stable End-Markets; Volume Improvement Likely Reiterate Outperform. Rating: RAISING PRICE TARGET

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1 April 22, 2016 Baird Equity Research Packaging & Coatings PPG Industries, Inc. (PPG) Stable End-Markets; Volume Improvement Likely Reiterate Outperform Rating Price target raised to $125. In our opinion, the shares of PPG Industries are incrementally attractive post the sell-off in the stock driven in part by sub-par volume growth during 1Q. Regardless we believe that an improving volume trend line is likely throughout 2016, underlying our Outperform rating and raised $125 price target. Sentiment skewed by modest volume growth. Post conference call, we believe that while 1Q16 volume growth was a modest 1% for PPG, the latter should increase progressively as 2016 unfolds more fully. Trend line set to improve. In particular, while we believe that PPG is unlikely to generate above a 3% blended volume comparison owing to its product and geographic diversity, comparisons clearly get more favorable over the next few quarters, which should amplify discrete pockets of growth across the portfolio. Growth initiatives boosting outlook. Specifically, while the focus from investors is the weakness in Aerospace and slowdown in Auto OEM, growth continues to impress in Packaging, Auto Refinish and in Mexico (Comex), driven in part by technology driven commercialization successes. M&A acceleration likely. Further, with plentiful balance sheet capacity and Sherwin-Williams focused on the pending merger with Valspar, we believe that consolidation opportunities for the company are likely incrementally more attractive, with management clearly focused on boosting their position in the global Coatings industry. Shares attractive. Net:net, while the 5% sell-off in the shares is a function of recent outperformance in the stock relative to a sluggish overall 1Q, we remain of the view that the investment profile for PPG remains attractive at current levels. Our raised $125 price target is based on 12.0x '17E EV:EBITDA. RAISING PRICE TARGET 1-Year Price Chart M-15 J J-15 Stock Data A-15 S-15 O-15 Rating: Outperform Suitability: Average Risk Price Target/Previous: $125/$115 Price (4/21/16): $ Market Cap (mil): $29,704 Shares Out (mil): Average Daily Vol (mil): 1.51 Dividend Yield: 1.2% '16E EV:EBITDA: 11.8x '16E FCF Yield: 5.9% Estimates FY Dec 2015A 2016E 2017E Q A 1.31 A Q A 1.85 E Q A 1.81 E Q A 1.38 E Fiscal EPS 5.69 A 6.35 E 7.00 E Previous Est 6.30 E 6.90 E Fiscal P/E 19.4x 17.4x 15.8x Chart/Table Sources: FactSet and Baird Data. Price chart reflects most recent closing price. EPS (Net): Quarterly EPS may not some to FY EPS due to rounding. General: Quarterly EPS may not sum to FY EPS due to rounding. N-15 D-15 J-16 F-16 M-16 A-16 Industries, Inc. manufactures architectural, protective, industrial and decorative coatings, and glass products. [Please refer to Appendix - Important Disclosures and Analyst Certification] Ghansham Panjabi, Ph.D. gpanjabi@rwbaird.com Mehul M. Dalia mdalia@rwbaird.com Matthew T. Krueger mtkrueger@rwbaird.com

2 April 22, 2016 PPG Industries, Inc. Details Key Takeaways from 1Q16 Overall, company sales were up 0.3% in 1Q16 as a result of unfavorable FX activity (-3.8%) which more than offset positive acquisition contributions (+2.8%), volumes (+1.0%) and pricing (+0.3%). Volumes were mixed by region, with higher sales volumes in EMEA (+3%) and the Emerging Markets (Asia & Latin America combined +1%) outpacing ~flat YOY North American results. As for segment comparisons, Performance Coatings (57% of 16E sales) revenues were down 0.8% YOY. Unfavorable FX translations (-4.1%) combined with higher volumes (+1.0%), positive pricing (+1.3%), and acquisition activity (+9.3%). Architectural coatings demand experienced higher YOY volumes in EMEA due to broadening demand in Western Europe with local currency growth in North America and Asia Pacific. Protective coatings growth was offset by lower marine industry demand, noting that lower aerospace volumes were also a headwind during the quarter (lower demand / customer inventory management). Automotive Refinish, meanwhile, once again experienced solid sales growth with the U.S. and Canada representing the outperformers, noting that a 2-3% increase in miles driven is benefiting the refinish business. In terms of profitability, the Performance Coatings segment posted strong operating margins of 13.7% up 90 bp YOY as the company continues to benefit from prior acquisition activity, productivity initiatives, and positive price:cost due to raw material declines. Industrial Coatings (36% of 16E sales) posted revenue improvement of 2.4% in 1Q16 due primarily to acquisition activity (+6.3%) and higher volumes (+1.0%), which more than offset negative price:mix (-1.2%) and FX headwinds (-3.7%). Regionally, auto OEM growth was positive but was largely in line with industry rates, noting that difficult comparisons contributed to the slowed growth. Meanwhile, packaging coatings volumes increased (mid-to-high-sd) globally during 1Q driven by the industry s adoption of PPG s new can coating technologies, while industrial and specialty coatings grew modestly compared to the prior year. PPG s packaging volumes continue to benefit from share gains related to changing BPA regulations, particularly in Europe but also in North America (California), noting that this will likely be a theme worth watching moving forward as packaging coatings are high margin and PPG currently retains an overall market share in the low-sd range (vs. 25% target). Operating margins were up 110 bp (to 19.3%), based on higher volume, improved manufacturing cost management and the realization of lower YOY resin / raw material costs. PPG s Glass business (7% of 16E sales) posted lower YOY sales (down 2.2%) as a result of higher YOY pricing being more than offset by negative FX translations (-1.9%), divestitures (-2.0%) and lower volumes (-2.0%). Overall, segment volume was driven lower by both flat glass and fiber glass sales declines. Operating margins decreased 50 bp to 10.7% during 1Q16, largely due to a scheduled flat glass facility repair expense that increased expenses by $8 million during the quarter. Moving below the line, PPG s interest expense of $24 million in 1Q16 was higher YOY (+$6 million). Based on our estimates, the effective income tax rate was 24.9%. Further, we note that the company bought back $150 million in stock during 1Q16, while also paying dividends of ~$100 million. In terms of the outlook, management expects economic growth to remain measured globally, with a continued recovery in Europe and YOY demand growth in North America contributing to positive overall outlook. Further, expects to deploy at minimum $2.0-$2.5 billion toward acquisitions/share buybacks combined during 2015/2016, noting that it has already deployed $1.3 billion to date, although the company will also continue to remain an active participant in the M&A market. 2

3 April 22, 2016 PPG Industries, Inc. Finally, PPG Industries reported diluted 1Q16 EPS of $1.31 versus consensus at $1.30 and $1.19 reported during 1Q15. Quarterly Results Comparison - PPG (actual) vs. RWB Estimates Actual vs. Estimate Year/Year Change Reported 1Q16 1Q16E $ Diff %/bps Diff EPS Impact 1Q15 % Change Net Revenue: Performance Coatings 2, , % - 2, % Industrial Coatings 1, ,400.3 (28.3) -2.0% - 1, % Glass % % Net Revenue 3, , % - 3, % Operating Income: Performance Coatings (14.0) -4.8% ($0.04) % Industrial Coatings (1.2) -0.4% ($0.00) % Glass % $ % Corporate & Other Expense (1.0) -1.4% $ % Operating Income (9.4) -1.8% ($0.03) % Operating Margins: Performance Coatings 13.7% 14.5% - (90) % 90 Industrial Coatings 19.3% 19.0% % 110 Glass 10.7% 9.0% % (50) Operating Margins 13.6% 13.9% - (30) % 120 Interest Expense (net) (1.0) -4.0% $ % Pretax Income (8.4) -1.7% ($0.02) % Taxes (2.7) -2.3% % Tax Rate 24.9% 25.0% % $ % Net Income from NCI % $ % Net Income (7.9) -2.2% ($0.03) % Diluted Shares Outstanding % ($0.01) % Diluted EPS $1.31 $1.34 ($0.04) -2.7% ($0.04) $ % Sources: Company filings and Robert W. Baird & Co. estimates * EPS impact may be off by +/- $0.01 due to rounding. Investment Thesis No. 1 global coatings producer. Post a focused transformation, PPG has emerged as the global No. 1 in the rapidly consolidating Coatings niche a $120 billion sub-set within the Chemicals sector. Diverse product base. Products include friction-reducing airplane coatings, paints used for residential/commercial construction, performance coatings for automotive applications (OEM/refinishing), and coatings found inside beverage/food cans. In addition, PPG also has a legacy glass business (construction sheet and fiber glass; ~7% of sales). Attractive industry dynamics. With 90%+ of pro forma sales generated from coatings products, we believe the niche represents an attractive combination of stable growth, strong pricing power, and an asset-light business model that translates into substantial FCF generation. Acquisitions teed up. Regardless, it is our view that management fully intends to deploy $2 to $2.5 billion toward acquisitions/share buybacks in 2015 and 2016 combined, which we believe strategically positions the company ahead of an increased global growth paradigm. 3

4 April 22, 2016 PPG Industries, Inc. Rating and price target. Our $125 price target is based on 13.0x '16E EV:EBITDA, above its historical average of 8.0x LTM. The above-average multiple assumes multiple expansion as PPG continues to improve its focus on the coatings niche. Further, in our view, the multiple encompasses the company's recent acquisitions, considerable balance sheet capacity, and exposure to the N.A. architectural market. Risks & Caveats Macroeconomic sensitivity. PPG derives the majority of its revenue and profits from the economically sensitive industrial and housing end markets. Accordingly, the company carries additional cyclical risks and could experience considerable volume declines in a recessionary environment. Raw material price spikes and supply constraints. Raw materials account for 70-80% of coatings COGS and PPG is especially exposed to fluctuations in natural gas, TiO2, and propylene. Potential for pricing pressure. While we expect PPG to remain amongst the price leaders within the Coatings sector, heightened price competition stemming from lower raw material costs could lead to systemic pricing pressure across select businesses within PPG's portfolio. Company Description PPG Industries, Inc. manufactures architectural, protective and decorative coatings, and glass products. Based in Pittsburgh, PA, PPG is a leader in the coatings market with ~15% market share. The company operates in three reportable segments including Performance Coatings (auto refinish, aerospace and marine), Industrial Coatings (auto OEM/packaging), and Glass. 4

5 Figure 1. PPG Industries, Inc. Quarterly Income Statement ($ in millions except per share data) Q1 Q2 Q3 Q E E E 2016E Performance Coatings $2,055.0 $2,039.0 $2,410.0 $2,415.7 $2,240.0 $2,273.6 $2,060.0 $2,080.6 $8,808.9 EBIT $262.0 $279.0 $411.0 $445.8 $379.0 $421.1 $250.0 $271.2 $1,417.1 % margin 12.7% 13.7% 17.1% 18.5% 16.9% 18.5% 12.1% 13.0% 16.1% Industrial Coatings $1,340.0 $1,372.0 $1,411.0 $1,422.8 $1,354.0 $1,367.5 $1,371.0 $1,384.7 $5,547.0 EBIT $244.0 $265.0 $260.0 $270.7 $241.0 $259.8 $240.0 $256.2 $1,051.8 % margin 18.2% 19.3% 18.4% 19.0% 17.8% 19.0% 17.5% 18.5% 19.0% Glass $267.0 $261.0 $279.0 $287.4 $278.0 $293.3 $265.0 $280.9 $1,122.6 EBIT $30.0 $28.0 $37.0 $35.8 $32.0 $35.2 $38.0 $42.2 $141.3 % margin 11.2% 10.7% 13.3% 12.5% 11.5% 12.0% 14.3% 15.0% 12.6% Corporate / Other / Legacy Expense $79.0 $71.0 $71.0 $72.0 $49.0 $58.0 $58.0 $65.0 $266.0 Total Sales $3,662.0 $3,672.0 $4,100.0 $4,125.9 $3,872.0 $3,934.4 $3,696.0 $3,746.2 $15,478.5 EBIT $457.0 $501.0 $637.0 $680.3 $603.0 $658.1 $470.0 $504.7 $2,344.1 % margin 12.5% 13.6% 15.5% 16.5% 15.6% 16.7% 12.7% 13.5% 15.1% Interest Expense $18.0 $24.0 $24.0 $26.0 $21.0 $26.0 $23.0 $26.0 $102.0 Pretax Income $439.0 $477.0 $613.0 $654.3 $582.0 $632.1 $447.0 $478.7 $2,242.1 % Margin 12.0% 13.0% 12.0% 15.9% 15.0% 16.1% 12.1% 12.8% 14.5% Income taxes $107.0 $118.6 $150.0 $160.3 $137.0 $154.9 $109.6 $117.3 $551.1 Tax Rate (%) 24.4% 24.9% 24.5% 24.5% 23.5% 24.5% 24.5% 24.5% 24.6% Net Income from NCI $5.0 $6.8 $5.0 $4.5 $6.0 $4.5 $5.0 $4.5 $20.3 Net Income $327.0 $351.6 $458.0 $489.5 $439.0 $472.7 $332.4 $356.9 $1,670.8 % Margin 8.9% 9.6% 7.9% 11.9% 11.3% 12.0% 9.0% 9.5% 10.8% Dil EPS $1.19 $1.31 $1.67 $1.85 $1.61 $1.81 $1.23 $1.38 $6.35 Dil Shares EBITDA $577.0 $622.0 $762.0 $801.3 $728.0 $779.1 $595.0 $626.7 $2,829.1 EBITDA Margin 11.7% 16.9% 16.4% 19.4% 15.7% 19.8% 13.5% 16.7% 18.3% D&A $120.0 $121.0 $125.0 $121.0 $125.0 $121.0 $125.0 $122.0 $485.0 Notes: Analysis: Yr/Yr Performance Coatings Sales 2.4% (0.8%) 2.9% 0.2% (0.8%) 1.5% (1.5%) 1.0% 0.5% Yr/Yr Industrial Coatings (1.7%) 2.4% (2.7%) 0.8% (2.9%) 1.0% 2.0% 1.0% 1.3% Yr/Yr Glass 0.4% (2.2%) (3.5%) 3.0% (1.8%) 5.5% (2.6%) 6.0% 3.1% Total Yr/Yr Sales 0.7% 0.3% 0.4% 0.6% (1.6%) 1.6% (0.3%) 1.4% 1.0% EBIT Margin (Performance Coatings) 12.7% 13.7% 17.1% 18.5% 16.9% 18.5% 12.1% 13.0% 16.1% EBIT Margin (Industrial Coatings) 18.2% 19.3% 18.4% 19.0% 17.8% 19.0% 17.5% 18.5% 19.0% EBIT Margin (Glass) 11.2% 10.7% 13.3% 12.5% 11.5% 12.0% 14.3% 15.0% 12.6% Total EBIT Margin 12.5% 13.6% 15.5% 16.5% 15.6% 16.7% 12.7% 13.5% 15.1% Pretax margin 12.0% 13.0% 12.0% 15.9% 15.0% 16.1% 12.1% 12.8% 14.5% Net Margin (Common) 8.9% 9.6% 7.9% 11.9% 11.3% 12.0% 9.0% 9.5% 10.8% Yr/Yr EPS Growth 19.7% 10.0% 17.6% 11.2% 14.0% 12.7% 16.3% 12.9% 11.7% Source: Company reports and estimates 5

6 Figure 2. PPG Industries, Inc. Segment Results Reconciliation YOY Q1 Q2 Q3 Q E E E 2016E Model Assumptions Performance Coatings Vol (est) (1.7%) 1.0% 1.0% 2.0% (3.0%) 3.0% 0.0% 2.0% 2.0% Price:mix (est) 0.9% 1.1% 0.9% 1.0% 1.3% 1.0% 0.6% 1.0% 1.0% Acq / Div 11.2% 1.2% 10.0% 1.0% 9.3% 0.5% 5.9% 0.0% 0.7% FX / Other (8.0%) (4.1%) (9.0%) (3.8%) (8.4%) (3.0%) (8.0%) (2.0%) (3.2%) Total 2.4% (0.8%) 2.9% 0.2% (0.8%) 1.5% (1.5%) 1.0% 0.5% EBIT Margins D 0.4% 0.9% 1.1% 1.4% 1.6% 1.6% 0.7% 0.9% 1.2% Industrial Coatings Vol (est) 5.0% 1.0% 2.0% 2.0% 1.5% 2.0% 4.0% 2.0% 1.8% Price:mix (est) 0.0% (1.2%) 2.3% (1.0%) (0.1%) (1.0%) 0.0% (1.0%) (1.1%) Acq / Div 0.0% 6.3% 0.0% 2.8% 3.6% 2.0% 5.0% 1.0% 3.0% FX (6.7%) (3.7%) (7.0%) (3.0%) (7.9%) (2.0%) (7.0%) (1.0%) (2.4%) Total (1.7%) 2.4% (2.7%) 0.8% (2.9%) 1.0% 2.0% 1.0% 1.3% EBIT Margins D 1.3% 1.1% 0.7% 0.6% 0.6% 1.2% 0.9% 1.0% 1.0% Glass Vol (est) 0.0% (2.0%) (3.0%) 2.0% 3.0% 2.0% 2.0% 2.0% 1.0% Price:mix (est) 5.4% 3.7% 3.5% 4.0% 1.0% 4.0% 0.5% 4.0% 3.9% Acq / Div 0.0% (2.0%) 0.0% (2.0%) (3.0%) 0.0% (2.0%) 0.0% (1.0%) FX (5.0%) (1.9%) (4.0%) (1.0%) (2.8%) (0.5%) (3.1%) 0.0% (0.8%) Total 0.4% (2.2%) (3.5%) 3.0% (1.8%) 5.5% (2.6%) 6.0% 3.1% EBIT Margins D 9.7% (0.5%) 9.5% (0.8%) (0.1%) 0.5% 2.2% 0.7% (0.0%) Source: - estimates and Company filings Yr/Yr Q4 Q4 Q4 Q4 FY E E E 2016E Overall Vol 1.2% 1.0% 1.0% -0.7% 1.5% 0.6% Price:mix 0.1% 0.3% 0.0% 0.0% 0.0% 0.3% Acq / Div 6.5% 2.8% 6.6% 7.1% 5.0% 0.2% FX / Other -7.2% -3.8% -7.2% -8.0% -6.8% -1.0% 0.7% 0.3% 0.4% -1.6% -0.3% 0.1% Source: Company reports and estimates 6

7 Figure 3. PPG Industries, Inc. Quarterly Income Statement ($ in millions except per share data) Q1 Q2 Q3 Q Performance Coatings $2,007.0 $2,055.0 $2,343.0 $2,410.0 $2,257.0 $2,240.0 $2,091.0 $2,060.0 $8,765.0 EBIT $248.0 $262.0 $373.0 $411.0 $345.0 $379.0 $239.0 $250.0 $1,302.0 % margin 12.4% 12.7% 15.9% 17.1% 15.3% 16.9% 11.4% 12.1% 14.9% Industrial Coatings $1,363.0 $1,340.0 $1,450.0 $1,411.0 $1,395.0 $1,354.0 $1,344.0 $1,371.0 $5,476.0 EBIT $231.0 $244.0 $257.0 $260.0 $240.0 $241.0 $223.0 $240.0 $985.0 % margin 16.9% 18.2% 17.7% 18.4% 17.2% 17.8% 16.6% 17.5% 18.0% Glass $266.0 $267.0 $289.0 $279.0 $283.0 $278.0 $272.0 $265.0 $1,089.0 EBIT $4.0 $30.0 $11.0 $37.0 $33.0 $32.0 $33.0 $38.0 $137.0 % margin 1.5% 11.2% 3.8% 13.3% 11.7% 11.5% 12.1% 14.3% 12.6% Corporate / Other / Legacy Expense $73.0 $79.0 $74.0 $71.0 $59.0 $49.0 $72.0 $58.0 $257.0 Total Sales $3,636.0 $3,662.0 $4,082.0 $4,100.0 $3,935.0 $3,872.0 $3,707.0 $3,696.0 $15,330.0 EBIT $410.0 $457.0 $567.0 $637.0 $559.0 $603.0 $423.0 $470.0 $2,167.0 % margin 11.3% 12.5% 13.9% 15.5% 14.2% 15.6% 11.4% 12.7% 14.1% Interest Expense $35.0 $18.0 $35.0 $24.0 $34.0 $21.0 $33.0 $23.0 $86.0 Pretax Income $375.0 $439.0 $532.0 $613.0 $525.0 $582.0 $390.0 $447.0 $2,081.0 % Margin 10.3% 12.0% 12.0% 15.0% 13.3% 15.0% 10.5% 12.1% 13.6% Income taxes $90.0 $107.0 $128.8 $150.0 $125.0 $137.0 $91.5 $109.6 $503.6 Tax Rate (%) 24.0% 24.4% 24.2% 24.5% 23.8% 23.5% 23.5% 24.5% 24.2% Net Income from NCI $6.0 $5.0 $6.0 $5.0 $6.0 $6.0 $6.0 $5.0 $21.0 Net Income $279.0 $327.0 $397.2 $458.0 $394.0 $439.0 $292.5 $332.4 $1,556.4 % Margin 7.7% 8.9% 7.9% 11.2% 10.0% 11.3% 7.9% 9.0% 10.2% Dil EPS $0.99 $1.19 $1.42 $1.67 $1.41 $1.61 $1.05 $1.23 $5.69 Dil Shares EBITDA $529.0 $577.0 $682.0 $762.0 $678.0 $728.0 $546.0 $595.0 $2,662.0 EBITDA Margin 11.7% 15.8% 16.4% 18.6% 15.7% 18.8% 13.5% 16.1% 17.4% D&A $119.0 $120.0 $115.0 $125.0 $119.0 $125.0 $123.0 $125.0 $495.0 Notes: Analysis: Yr/Yr Performance Coatings Sales 27.2% 2.4% 3.7% 2.9% 3.1% (0.8%) 9.6% (1.5%) 0.8% Yr/Yr Industrial Coatings 7.0% (1.7%) 7.0% (2.7%) 6.8% (2.9%) 1.1% 2.0% -1.4% Yr/Yr Glass 3.9% 0.4% 7.4% (3.5%) 1.8% (1.8%) 3.0% (2.6%) -1.9% Total Yr/Yr Sales 17.0% 0.7% 5.1% 0.4% 4.3% (1.6%) 5.9% (0.3%) -0.2% EBIT Margin (Performance Coatings) 12.4% 12.7% 15.9% 17.1% 15.3% 16.9% 11.4% 12.1% 14.9% EBIT Margin (Industrial Coatings) 16.9% 18.2% 17.7% 18.4% 17.2% 17.8% 16.6% 17.5% 18.0% EBIT Margin (Glass) 1.5% 11.2% 3.8% 13.3% 11.7% 11.5% 12.1% 14.3% 12.6% Total EBIT Margin 11.3% 12.5% 13.9% 15.5% 14.2% 15.6% 11.4% 12.7% 14.1% Pretax margin 10.3% 12.0% 12.0% 15.0% 13.3% 15.0% 10.5% 12.1% 13.6% Net Margin (Common) 7.7% 8.9% 7.9% 11.2% 10.0% 11.3% 7.9% 9.0% 10.2% Yr/Yr EPS Growth 42.2% 19.7% 24.5% 17.6% 21.8% 14.0% 25.3% 16.3% 16.7% Source: Company reports and estimates 7

8 Figure 4. PPG Industries, Inc. Segment Results Reconciliation YOY Q1 Q2 Q3 Q Model Assumptions Performance Coatings Vol (est) 3.0% (1.7%) 1.0% 1.0% 1.2% (3.0%) 2.0% 0.0% (0.9%) Price:mix (est) 1.5% 0.9% 0.9% 0.9% 1.0% 1.3% 1.0% 0.6% 0.9% Acq / Div 22.7% 11.2% 0.9% 10.0% 0.9% 9.3% 10.6% 5.9% 9.1% FX / Other 0.0% (8.0%) 0.9% (9.0%) 0.0% (8.4%) (4.0%) (8.0%) (8.4%) Total 27.2% 2.4% 3.7% 2.9% 3.1% (0.8%) 9.6% (1.5%) 0.8% EBIT Margins D 0.2% 0.4% 1.6% 1.1% 0.4% 1.6% 0.8% 0.7% 1.0% Industrial Coatings Vol (est) 7.0% 5.0% 7.0% 2.0% 6.8% 1.5% 5.0% 4.0% 3.1% Price:mix (est) 0.0% 0.0% 0.0% 2.3% 0.0% (0.1%) 0.0% 0.0% 0.6% Acq / Div 0.0% 0.0% 0.0% 0.0% 0.0% 3.6% 0.0% 5.0% 2.1% FX 0.0% (6.7%) 0.0% (7.0%) 0.0% (7.9%) (3.9%) (7.0%) (7.1%) Total 7.0% (1.7%) 7.0% (2.7%) 6.8% (2.9%) 1.1% 2.0% (1.3%) EBIT Margins D 1.4% 1.3% 1.6% 0.7% 1.4% 0.6% 1.4% 0.9% 0.9% Glass Vol (est) 2.9% 0.0% 5.0% (3.0%) 0.0% 3.0% 2.0% 2.0% 0.5% Price:mix (est) 1.0% 5.4% 2.4% 3.5% 1.8% 1.0% 3.0% 0.5% 2.6% Acq / Div 0.0% 0.0% 0.0% 0.0% 0.0% (3.0%) 0.0% (2.0%) (1.3%) FX 0.0% (5.0%) 0.0% (4.0%) 0.0% (2.8%) (2.0%) (3.1%) (3.7%) Total 3.9% 0.4% 7.4% (3.5%) 1.8% (1.8%) 3.0% (2.6%) (1.9%) EBIT Margins D (0.4%) 9.7% 0.8% 9.5% 4.1% (0.1%) 3.8% 2.2% 5.3% Source: Company reports and estimates 8

9 Figure 5. PPG Industries, Inc. Annual Income Statement Adj. for ($ in millions except per share data) Chemical Divest. Adjusted for Segment Realignment / Optical Sale E 2017E $2,478.0 $2,668.0 $3,088.0 $3,811.0 $4,716.0 $4,095.0 $4,281.0 $4,626.0 $4,752.0 $5,872.0 $6,730.0 $6,899.0 $7,934.0 $8,698.0 $8,765.0 $8,808.9 $8,985.1 Performance Coatings EBIT $451.0 $464.0 $514.0 $563.0 $582.0 $551.0 $661.0 $673.0 $744.0 $858.0 $796.0 $889.0 $1,043.0 $1,205.0 $1,302.0 $1,417.1 $1,526.3 % margin 18.2% 17.4% 16.6% 14.8% 12.3% 13.5% 15.4% 14.5% 15.7% 14.6% 11.8% 12.9% 13.1% 13.9% 14.9% 16.1% 17.0% Industrial Coatings $2,818.0 $2,921.0 $3,236.0 $3,646.0 $3,999.0 $3,068.0 $3,708.0 $4,158.0 $4,379.0 $4,845.0 $4,158.0 $4,774.0 $5,264.0 $5,552.0 $5,476.0 $5,547.0 $5,630.2 EBIT $338.0 $284.0 $349.0 $370.0 $212.0 $159.0 $378.0 $438.0 $590.0 $724.0 $560.0 $732.0 $824.0 $951.0 $985.0 $1,051.8 $1,123.9 % margin 12.0% 9.7% 10.8% 10.1% 5.3% 5.2% 10.2% 10.5% 13.5% 14.9% 13.5% 15.3% 15.7% 17.1% 18.0% 19.0% 20.0% Glass $2,183.0 $2,214.0 $2,229.0 $1,939.0 $1,914.0 $849.0 $985.0 $1,061.0 $1,032.0 $1,067.0 $1,061.0 $1,032.0 $1,067.0 $1,110.0 $1,089.0 $1,122.6 $1,145.0 EBIT $147.0 $123.0 $148.0 $124.0 $70.0 -$39.0 $74.0 $97.0 $63.0 $56.0 $97.0 $63.0 $56.0 $81.0 $137.0 $141.3 $148.7 % margin 6.7% 5.6% 6.6% 6.4% 3.7% -4.6% 7.5% 9.1% 6.1% 5.2% 9.1% 6.1% 5.2% 7.3% 12.6% 12.6% 13.0% Corporate / Other / Legacy Expense $20.0 $24.0 $32.0 $113.0 $90.0 $84.0 $132.0 $155.0 $204.0 $260.0 $271.0 $290.0 $289.0 $260.0 $280.0 $291.0 $278.0 $257.0 $266.0 $275.0 Total Sales $8,169.0 $8,067.0 $8,756.0 $9,513.0 $10,201.0 $11,037.0 $11,964.0 $15,849.0 $12,239.0 $13,423.0 $14,885.0 $15,200.0 $15,108.0 $11,949.0 $12,705.0 $14,265.0 $15,360.0 $15,330.0 $15,478.5 $15,760.3 EBIT $923.0 $923.0 $982.0 $1,122.0 $1,313.0 $1,425.0 $1,403.0 $1,434.0 $982.0 $1,462.0 $1,756.0 $1,972.0 $1,901.0 $1,193.0 $1,404.0 $1,632.0 $1,959.0 $2,167.0 $2,344.1 $2,523.8 % margin 11.3% 11.4% 11.2% 11.8% 12.9% 12.9% 11.7% 9.0% 8.0% 10.9% 11.8% 13.0% 12.6% 10.0% 11.1% 11.4% 12.8% 14.1% 15.1% 16.0% Net Interest Expense $154.0 $119.0 $97.0 $78.0 $68.0 $69.0 $73.0 $227.0 $166.0 $155.0 $168.0 $171.0 $153.0 $168.0 $170.0 $153.0 $137.0 $86.0 $102.0 $100.0 Pretax Income $769.0 $804.0 $885.0 $1,044.0 $1,245.0 $1,356.0 $1,330.0 $1,207.0 $816.0 $1,307.0 $1,588.0 $1,801.0 $1,748.0 $1,025.0 $1,234.0 $1,479.0 $1,822.0 $2,081.0 $2,242.1 $2,423.8 % Margin 9.4% 10.0% 10.1% 11.0% 12.2% 12.3% 11.1% 7.6% 6.7% 9.7% 10.7% 11.8% 11.6% 8.6% 9.7% 10.4% 11.9% 13.6% 14.5% 15.4% Income taxes $279.0 $289.0 $310.0 $284.0 $400.0 $494.0 $367.0 $363.3 $249.0 $342.0 $376.0 $447.0 $424.9 $235.8 $283.8 $341.5 $435.3 $503.6 $551.1 $606.0 Tax Rate (%) 36.3% 35.9% 35.0% 27.2% 32.1% 36.4% 27.6% 30.1% 30.5% 26.2% 23.7% 24.8% 24.3% 23.0% 23.0% 23.1% 23.9% 24.2% 24.6% 25.0% Net Income from NCI $32.0 $39.0 $50.0 $58.0 $69.0 $71.0 $76.0 $86.0 $90.0 $111.0 $117.0 $123.0 $122.0 $12.0 $17.0 $26.1 $24.0 $21.0 $20.3 $20.0 Net Income $458.0 $476.0 $525.0 $702.0 $776.0 $791.0 $887.0 $757.7 $477.0 $854.0 $1,095.0 $1,231.0 $1,201.1 $777.3 $933.2 $1,111.4 $1,362.7 $1,556.4 $1,670.8 $1,797.9 % Margin 5.6% 5.9% 6.0% 7.4% 7.6% 7.2% 7.4% 4.8% 3.9% 6.4% 7.4% 8.1% 8.0% 6.5% 7.3% 7.8% 8.9% 10.2% 10.8% 11.4% Dil EPS $1.35 $1.40 $1.54 $2.03 $2.27 $2.38 $2.67 $2.29 $1.44 $2.57 $3.44 $3.96 $4.14 $2.44 $3.01 $3.83 $4.87 $5.69 $6.35 $7.00 Dil Shares EBITDA 1, , , , , , , , , , , , , , , , , , , ,008.8 EBITDA Margin 16.8% 16.4% 15.7% 15.9% 16.5% 16.4% 15.0% 12.6% 11.9% 14.4% 14.9% 16.0% 15.7% 13.3% 14.2% 14.6% 15.9% 17.4% 18.3% 19.1% D&A Notes: FY 2001: FY 2002: FY 2003: Excludes $0.14 / share in asbestos settlement, $0.01 / share in restructuring and $0.03 / share due to an accounting change. FY 2004: FY 2005: FY 2006: FY 2007: FY 2009: FY 2008: FY 2010: FY 2011: Adj. for FY 2012: Chemical Adjusted for Segment Realignment / Optical Sale Divest. Analysis: E 2017E Yr/Yr Performance Coatings Sales % 15.7% 23.4% 23.7% (13.2%) 4.5% 8.1% 2.7% 23.6% 4.0% 2.5% 15.0% 9.6% 0.8% 0.5% 2.0% Yr/Yr Industrial Coatings % 10.8% 12.7% 9.7% (23.3%) 20.9% 12.1% 5.3% 10.6% (17.7%) 14.8% 10.3% 5.5% (1.4%) 1.3% 1.5% Yr/Yr Glass % 0.7% (13.0%) (1.3%) (55.6%) 16.0% 7.7% (2.7%) 3.4% (6.6%) (2.7%) 3.4% 4.0% (1.9%) 3.1% 2.0% Total Yr/Yr Sales (1.2%) 8.5% 8.6% 7.2% 8.2% 8.4% 32.5% (22.8%) 9.7% 10.9% 2.1% (0.6%) (26.1%) 6.3% 12.3% 7.7% (0.2%) 1.0% 1.8% EBIT Margin (Performance Coatings) % 17.4% 16.6% 14.8% 12.3% 13.5% 15.4% 14.5% 15.7% 14.6% 11.8% 12.9% 13.1% 13.9% 14.9% 16.1% 17.0% EBIT Margin (Industrial Coatings) % 9.7% 10.8% 10.1% 5.3% 5.2% 10.2% 10.5% 13.5% 14.9% 13.5% 15.3% 15.7% 17.1% 18.0% 19.0% 20.0% EBIT Margin (Glass) % 3.7% (4.6%) 7.5% 9.1% 6.1% 5.2% 9.1% 6.1% 5.2% 7.3% 12.6% 12.6% 13.0% Total EBIT Margin 11.3% 11.4% 11.2% 11.8% 12.9% 12.9% 11.7% 9.0% 8.0% 10.9% 11.8% 13.0% 12.6% 10.0% 11.1% 11.4% 12.8% 14.1% 15.1% 16.0% Pretax margin 9.4% 10.0% 10.1% 11.0% 12.2% 12.3% 11.1% 7.6% 6.7% 9.7% 10.7% 11.8% 11.6% 8.6% 9.7% 10.4% 11.9% 13.6% 14.5% 15.4% Net Margin (Common) 5.6% 5.9% 6.0% 7.4% 7.6% 7.2% 7.4% 4.8% 3.9% 6.4% 7.4% 8.1% 8.0% 6.5% 7.3% 7.8% 8.9% 10.2% 10.8% 11.4% Yr/Yr EPS Growth - 3.5% 9.6% 32.1% 11.9% 4.6% 12.4% (14.3%) (37.0%) 78.5% 33.6% 15.3% 4.4% % 27.4% 27.2% 16.7% 11.7% 10.2% Source: Company reports and estimates 9

10 Figure 6. PPG Industries, Inc. Cash Flow Statement ($ in millions) Analyst: Ghansham Panjabi (214) Adj. for Chemical Adjusted for Segment Realignment / Optical Sale Divest E 2017E Net Income $458.0 $476.0 $525.0 $702.0 $776.0 $791.0 $887.0 $757.7 $477.0 $854.0 $1,095.0 $1,231.0 $1,201.1 $777.3 $933.2 $1,111.4 $1,362.7 $1,556.4 $1,670.8 $1,797.9 D&A $447.0 $398.0 $394.0 $388.0 $372.0 $380.0 $395.0 $563.0 $480.0 $470.0 $467.0 $465.0 $475.0 $399.0 $399.0 $452.0 $476.0 $495.0 $485.0 $485.0 Deferred Taxes $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Restructuring $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 ($90.0) ($130.0) $0.0 ($90.0) ($130.0) ($65.0) $0.0 $0.0 $0.0 Pension Contribution $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 ($80.0) ($175.0) $0.0 ($80.0) ($175.0) ($25.0) ($300.0) ($50.0) ($50.0) Other $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 ($84.9) $8.3 $77.0 ($20.0) $98.0 $0.0 $200.0 $98.0 $0.0 $200.0 $138.0 $50.0 $100.0 $100.0 Operating Cash flow $905.0 $874.0 $919.0 $1,090.0 $1,148.0 $1,171.0 $1,197.1 $1,329.0 $1,034.0 $1,304.0 $1,660.0 $1,526.0 $1,571.1 $1,660.0 $1,526.0 $1,458.4 $1,886.7 $1,801.4 $2,205.8 $2,332.9 Op Cash / Share $2.67 $2.57 $2.69 $3.15 $3.36 $3.52 $3.60 $4.01 $3.12 $3.93 $5.21 $4.91 $5.42 $5.21 $4.91 $5.03 $6.75 $6.58 $8.38 $9.08 Capital expenditures $291.0 $238.0 $217.0 $244.0 $288.0 $372.0 $353.0 $383.0 $239.0 $307.0 $390.0 $411.0 $515.0 $390.0 $411.0 $515.0 $587.0 $475.0 $500.0 $500.0 Dividends $283.0 $287.0 $294.0 $307.0 $316.0 $316.0 $335.0 $343.0 $353.0 $360.0 $355.0 $358.0 $345.0 $355.0 $358.0 $345.0 $361.0 $385.0 $390.0 $405.0 Working capital needs ($121.0) $18.0 ($211.0) $55.0 ($31.0) $0.0 $204.0 ($29.0) ($311.0) ($10.0) $224.0 $150.0 ($200.0) $224.0 $150.0 ($200.0) $0.0 ($25.0) ($10.0) $0.0 Free cash flow $452.0 $331.0 $619.0 $484.0 $575.0 $483.0 $305.1 $632.0 $753.0 $647.0 $691.0 $607.0 $911.1 $691.0 $607.0 $798.4 $938.7 $966.4 $1,325.8 $1,427.9 Free cash flow (excluding dividend) $735.0 $618.0 $913.0 $791.0 $891.0 $799.0 $640.1 $975.0 $1,106.0 $1,007.0 $1,046.0 $965.0 $1,256.1 $1,046.0 $965.0 $1,143.4 $1,299.7 $1,351.4 $1,715.8 $1,832.9 FCF / Share $1.34 $0.97 $1.81 $1.40 $1.68 $1.45 $0.92 $1.91 $2.28 $1.95 $2.17 $1.95 $3.14 $2.17 $1.95 $2.75 $3.36 $3.53 $5.04 $5.56 FCF / Share (ex-dividend) $2.17 $1.82 $2.67 $2.29 $2.61 $2.40 $1.93 $2.94 $3.34 $3.03 $3.28 $3.11 $4.33 $3.28 $3.11 $3.94 $4.65 $4.94 $6.52 $7.13 EBITDA $1,370.0 $1,321.0 $1,376.0 $1,510.0 $1,685.0 $1,805.0 $1,798.0 $1,997.0 $1,462.0 $1,932.0 $2,223.0 $2,437.0 $2,376.0 $1,592.0 $1,803.0 $2,084.0 $2,435.0 $2,662.0 $2,829.1 $3,008.8 Source: Company reports and estimates 10

11 Figure 7. PPG Industries, Inc. Balance Sheet FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Q Q Q Q Q Q Q Q Q Q Q Q Q Assets Cash & Cash Equivalents $108.0 $117.0 $499.0 $659.0 $466.0 $443.0 $2,232.0 $1,021.0 $1,057.0 $1,341.0 $1,457.0 $1,306.0 $1,116.0 $1,243.0 $1,311.0 $2,021.0 $1,243.0 $1,562.0 $1,116.0 $2,559.0 $1,986.0 $2,468.0 $686.0 $735.0 $707.0 $1,015.0 $1,311.0 $909.0 Short-Term Investments , $359.0 $538.0 $ $480.0 $927.0 $570.0 $497.0 $435.0 $475.0 $399.0 $144.0 $121.0 Accounts Receivable (net) 1, , , , , , , , , , , , , , , , , , , , , , , , , , , ,106.0 Inventories (net) , , , , , , , , , , , , , , , , , , , , , , , , ,863.0 Deferred Income Taxes Other Current Assets , , Total Current Assets $2,703.0 $2,945.0 $3,537.0 $4,054.0 $4,019.0 $4,855.0 $7,136.0 $6,348.0 $5,981.0 $7,058.0 $6,694.0 $7,715.0 $7,214.0 $7,710.0 $7,226.0 $7,726.0 $7,710.0 $8,120.0 $7,214.0 $8,888.0 $9,035.0 $8,898.0 $6,850.0 $7,084.0 $7,374.0 $7,292.0 $7,226.0 $6,718.0 Property, Plant & Equipment (net) 2, , , , , , , , , , , , , , , , , , , , , , , , , , , Investments Goodwill , , , , , , , , , , , , , , , , , , , , , , , , , , Identifiable Intangible Assets , , , , , , , , , , , , , , , , , , , , Other Assets 1, , , , , , , , , , Total Assets $8,452.0 $7,863.0 $8,424.0 $8,932.0 $8,681.0 $10,067.0 $12,629.0 $14,698.0 $14,240.0 $14,975.0 $14,382.0 $15,878.0 $15,863.0 $16,066.0 $17,076.0 $15,376.0 $16,066.0 $16,638.0 $15,863.0 $17,117.0 $17,300.0 $17,087.0 $17,583.0 $17,368.0 $17,596.0 $17,574.0 $17,076.0 $6,718.0 Liabilities & Shareholder's Equity ST Debt & Current Portion of LT Debt , Asbestos Settlement Account Payable & Accrued Liabilities 1, , , , , , , , , , , , , , , , , , , , , , , , , , , ,687.0 Business Restructuring & Other Total Current $1,955.0 $1,920.0 $2,139.0 $2,221.0 $2,349.0 $2,816.0 $4,661.0 $4,210.0 $3,577.0 $3,625.0 $3,702.0 $4,461.0 $4,135.0 $4,106.0 $4,656.0 $3,727.0 $4,106.0 $4,362.0 $4,135.0 $4,566.0 $4,962.0 $4,896.0 $4,876.0 $4,773.0 $4,825.0 $4,770.0 $4,656.0 $4,556.0 LT Debt 1, , , , , , , , , , , , , , , , , , , , , , , , , , , ,226.0 Asbestos Settlement Deferred Income Taxes Accrued Pensions , , Other Post-Retirement Benefits , , , , , , , , , , , , , , , , , , , , , Other Liabilities , Non-Controlling Interests Shareholders Equity 3, , , , , , , , , , , , , , , , , , , , , , , , , , , Total Liabilities & Equity $8,452.0 $7,863.0 $8,424.0 $8,932.0 $8,681.0 $10,067.0 $12,629.0 $14,698.0 $14,240.0 $14,975.0 $14,382.0 $15,878.0 $15,863.0 $16,066.0 $17,076.0 $15,376.0 $16,066.0 $16,638.0 $15,863.0 $17,117.0 $17,300.0 $17,087.0 $17,583.0 $17,368.0 $17,596.0 $17,574.0 $17,076.0 $8,782.0 Cash , , , , , , , , , , , , , , , , , , , , , ,030.0 Total Debt 2, , , , , , , , , , , , , , , , , , , , , , , , , , , ,264.0 Net Debt 2, , , , , , , , , , , , , , , , , , , , ,234.0 Source: Company reports and estimates 11

12 Figure 8. PPG Industries, Inc. Balance Sheet Analysis Balance Sheet Analysis: FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Current ratio (X) 1.4x 1.5x 1.7x 1.8x 1.7x 1.7x 1.5x 1.5x 1.7x 1.9x 1.8x 1.7x 1.7x 1.9x Cash per share ($) $0.64 $0.69 $2.92 $3.81 $2.73 $2.66 $13.44 $6.17 $6.39 $8.08 $9.15 $8.42 $7.18 $8.29 Cash less total debt ($) ($2,287.0) ($1,934.0) ($1,167.0) ($641.0) ($804.0) ($852.0) ($788.0) ($2,891.0) ($2,289.0) ($2,093.0) ($2,200.0) ($1,617.0) ($1,661.0) ($1,598.0) Receivables O/S (days) Receivables/sales (%) 17.3% 18.4% 18.6% 18.9% 11.0% 18.3% 20.0% 17.7% 21.5% 20.7% 23.7% 22.1% 19.2% 21.0% Inventory turnover (X) 6.2x 5.8x 5.9x 5.9x 6.1x 6.2x 5.5x 6.3x 5.2x 5.5x 5.9x 5.6x 5.0x 5.0x Inventory/sales (%) 11.1% 11.7% 11.4% 11.3% 11.0% 10.9% 11.4% 10.7% 12.6% 11.7% 13.4% 13.3% 12.8% 12.1% Sales - % change - (1.2%) 8.5% 8.6% 7.2% 8.2% 8.4% 32.5% (22.8%) 9.7% (11.0%) 6.3% 12.3% 7.7% Receivables - % change - 4.9% 9.8% 10.2% (37.7%) 80.2% 18.9% 16.9% (6.3%) 5.7% 1.9% (0.6%) (2.7%) 17.8% Inventory - % change - 4.2% 5.8% 7.9% 4.0% 7.5% 13.7% 24.4% (9.0%) 1.6% 2.2% 5.0% 8.1% 2.1% Debt / total cap. (%) 43.7% 48.8% 36.4% 27.4% 29.4% 28.3% 42.1% 54.0% 47.1% 52.8% 53.1% 49.7% 40.8% 40.1% Debt / equity (%) 28.3% 26.1% 19.8% 15.1% 14.6% 12.9% 23.9% 26.6% 23.5% 27.2% 25.6% 25.3% 21.5% 21.0% Net Debt / EBITDA 1.7x 1.5x 0.8x 0.4x 0.5x 0.5x 0.4x 1.4x 1.6x 1.1x 1.4x 0.9x 0.8x 0.7x Assets/equity (X) 2.7x 3.7x 2.9x 2.5x 2.8x 3.1x 3.0x 4.4x 3.8x 4.1x 4.4x 3.9x 3.2x 3.2x Interest coverage (X) 6.0x 7.8x 10.1x 14.4x 19.3x 20.7x 19.2x 6.3x 5.9x 9.4x 10.5x 11.8x 13.9x 15.6x Book value per share ($) $18.20 $12.65 $17.03 $20.65 $17.86 $19.70 $24.99 $20.13 $22.68 $21.92 $20.40 $26.19 $31.72 $33.61 Fixed asset turnover (X) 0.3x 0.3x 0.3x 0.3x 0.2x 0.2x 0.2x 0.2x 0.2x 0.2x 0.2x 0.2x 0.2x 0.2x Total asset turnover (X) 1.0x 1.0x 1.0x 1.1x 1.2x 1.1x 0.9x 1.1x 0.9x 0.9x 0.8x 0.8x 0.9x 1.0x Average asset turnover (X) Return average assets (%) - 5.8% 6.4% 8.1% 8.8% 8.4% 7.8% 5.5% 3.3% 5.8% 7.5% 8.1% 8.4% 8.9% Return average equity (%) % 20.7% 21.7% 23.4% 25.0% 23.9% 20.2% 13.5% 23.1% 31.8% 33.5% 29.6% 28.4% Return total capital (%) % 12.8% 15.4% 19.0% 18.2% 13.1% 12.6% 8.3% 12.6% 17.6% 16.7% 17.3% 18.1% Shares outstanding Sales $8,169 $8,067 $8,756 $9,513 $10,201 $11,037 $11,964 $15,849 $12,239 $13,423 $11,949 $12,705 $14,265 $15,360 COGS $5,584 $5,464 $5,915 $6,387 $6,845 $7,416 $7,467 $10,718 $8,019 $8,626 $9,516 $9,523 $9,111 $9,267 Pretax Margin 9.4% 10.0% 10.1% 11.0% 12.2% 12.3% 11.1% 7.6% 6.7% 9.7% 10.7% 11.9% 12.5% 13.0% Int Expense $154.0 $119.0 $97.0 $78.0 $68.0 $69.0 $73.0 $227.0 $166.0 $155.0 $168.0 $166.0 $150.0 $140.0 Pretax $769.0 $804.0 $885.0 $1,044.0 $1,245.0 $1,356.0 $1,330.0 $1,207.0 $816.0 $1,307.0 $1,588.0 $1,794.5 $1,936.8 $2,050.7 Tax Rate 36.3% 35.9% 35.0% 27.2% 32.1% 36.4% 27.6% 30.1% 30.5% 26.2% 23.7% 24.9% 25.0% 25.0% Net Income (Common) $458.0 $476.0 $525.0 $702.0 $776.0 $791.0 $887.0 $757.7 $477.0 $854.0 $1,095.0 $1,226.4 $1,332.6 $1,418.0 A-Tax Int $98.1 $76.2 $63.0 $56.8 $46.2 $43.9 $52.9 $158.7 $115.3 $114.4 $128.2 $124.7 $112.5 $105.0 Dividend $283.0 $287.0 $294.0 $307.0 $316.0 $316.0 $335.0 $343.0 $353.0 $360.0 $355.0 $360.0 $365.0 $365.0 Dividend Payout Ratio 61.8% 60.3% 56.0% 43.7% 40.7% 39.9% 37.8% 45.3% 74.0% 42.2% 32.4% 29.4% 27.4% 25.7% Retention Rate 38.2% 39.7% 44.0% 56.3% 59.3% 60.1% 62.2% 54.7% 26.0% 57.8% 67.6% 70.6% 72.6% 74.3% Source: Company reports and estimates 12

13 April 22, 2016 PPG Industries, Inc. Appendix - Important Disclosures and Analyst Certification Rating and Price Target History for: PPG Industries, Inc. (PPG) as of /17/13 O:$83 07/19/13 O:$88 10/18/13 O:$100 01/17/14 O:$108 07/01/14 O:$113 01/14/15 O:$125 01/22/16 O:$ Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q Created by BlueMatrix 1 Incorporated makes a market in the securities of PPG. Incorporated and/or its affiliates expect to receive or intend to seek investment banking related compensation from the company or companies mentioned in this report within the next three months. Incorporated may not be licensed to execute transactions in all foreign listed securities directly. Transactions in foreign listed securities may be prohibited for residents of the United States. Please contact a Baird representative for more information. Investment Ratings: Outperform (O) - Expected to outperform on a total return, risk-adjusted basis the broader U.S. equity market over the next 12 months. Neutral (N) - Expected to perform in line with the broader U.S. equity market over the next 12 months. Underperform (U) - Expected to underperform on a total return, risk-adjusted basis the broader U.S. equity market over the next 12 months. Risk Ratings: L - Lower Risk - Higher-quality companies for investors seeking capital appreciation or income with an emphasis on safety. Company characteristics may include: stable earnings, conservative balance sheets, and an established history of revenue and earnings. A - Average Risk - Growth situations for investors seeking capital appreciation with an emphasis on safety. Company characteristics may include: moderate volatility, modest balance-sheet leverage, and stable patterns of revenue and earnings. H - Higher Risk - Higher-growth situations appropriate for investors seeking capital appreciation with the acceptance of risk. Company characteristics may include: higher balance-sheet leverage, dynamic business environments, and higher levels of earnings and price volatility. S - Speculative Risk - High-growth situations appropriate only for investors willing to accept a high degree of volatility and risk. Company characteristics may include: unpredictable earnings, small capitalization, aggressive growth strategies, rapidly changing market dynamics, high leverage, extreme price volatility and unknown competitive challenges. Valuation, Ratings and Risks. The recommendation and price target contained within this report are based on a time horizon of 12 months but there is no guarantee the objective will be achieved within the specified time horizon. Price targets are determined by a subjective review of fundamental and/or quantitative factors of the issuer, its industry, and the security type. A variety of methods may be used to determine the value of a security including, but not limited to, discounted cash flow, earnings multiples, peer group comparisons, and sum of the parts. Overall market risk, interest rate risk, and general economic risks impact all securities. Specific information regarding the price target and recommendation is provided in the text of our most recent research report. Distribution of Investment Ratings. As of March 31, 2016, Baird U.S. Equity Research covered 710 companies, with 51% rated Outperform/Buy, 48% rated Neutral/Hold and 1% rated Underperform/Sell. Within these rating categories, 14% of Outperform/Buy-rated and 5% of Neutral/Hold-rated companies have compensated Baird for investment banking services in the past 12 months and/or Baird managed or co-managed a public offering of securities for these companies in the past 12 months. Analyst Compensation. Analyst compensation is based on: 1) the correlation between the analyst's recommendations and stock price performance; 2) ratings and direct feedback from our investing clients, our institutional and retail sales force (as applicable) and from independent rating services; 3) the analyst's productivity, including the quality of the analyst's research and the analyst's contribution to the growth and development of our overall research effort and 4) compliance with all of Robert W. Baird s internal policies and procedures. This compensation criteria and actual compensation is reviewed and approved on an annual basis by Baird's Research Oversight Committee. Analyst compensation is derived from all revenue sources of the firm, including revenues from investment banking. Baird does not compensate research analysts based on specific investment banking transactions. A complete listing of all companies covered by Baird U.S. Equity Research and applicable research disclosures can be accessed at 13

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