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Transcript of PPG Investor Overviewinvestor.ppg.com/.../ppg-investor-overview-march-2017-final.pdf · PPG...
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. 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 maintain favorable supplier relationships and arrangements, the timing of and the
realization of anticipated cost savings from restructuring initiatives, difficulties in integrating acquired
businesses and achieving expected synergies therefrom, economic and political conditions in international
markets, the ability to penetrate existing, developing and emerging foreign and domestic markets, foreign
exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of future legislation, the
impact of environmental regulations, unexpected business disruptions, and the unpredictability of existing
and possible future litigation. However, it is not possible to predict or identify all such factors.
Consequently, while the list of factors presented here and under Item 1A of PPG’s 2016 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 2016 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
PPG: Our employees protect and beautify the world
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 182
A global maker of
paints, coatings,
and materials, with
full-year net sales
of $14.8 billion* in
2016
5
*From Continuing Operations
PPG named “World’s Most Admired Chemical Company” by Fortune Magazine in 2017
2016 key achievements
Strategic Portfolio Actions•Divested flat glass, European fiber glass, & 2 Asian fiber glass joint ventures
•2 bolt-on acquisitions totaling $350 million
Strong Financial & Operational Performance •Adjusted EPS up 7% vs. prior year despite unfavorable foreign currency translation
•Operating working capital reduced by 120 basis points vs. prior year
Cash and Cash Deployment •$1.9 of cash and short-term investments at year-end
•Quarterly dividend increase – 45th consecutive year
•Deployed $1.4B to reach the top-end of 2 year deployment range of $2.5 billion
• $1,050MM for 2016 share repurchases
• $350MM for 2016 acquisitions
•Fully funded Pittsburgh Corning Asbestos Trust
•Annuitized significant portion of pension obligations6 * See appendix for adjusted EPS trend reconciliation
• 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)
2013
• 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)2014
• 6 strategic coatings bolt-on acquisitions ($400 million annual sales)
• REVOCOAT, IVC Industrial, LeJoint Français, Cuming Microwave, Consorcio LatinAmericano, Chemfil Canada
2015
2016
Significant portfolio transformation
Coatings represents ~97% of total PPG’s annual sales7
Sale of flat glass, European fiber glass, & PPG’s interest in 2 Asian fiber
glass joint ventures ($700 million annual sales)
Acquisitions of MetoKote & Univer
Our portfolio transformation
2005 – $10.2B 2016 – $14.8B
55%
23%
22%
97%
3%
Net Sales*
Paint and Coatings
Chemicals
Glass
*From Continuing Operations; 2005 as originally reported
Paints and Coatings = $14.3BPaints and Coatings = $5.6B
Significant transactions accelerate portfolio optimization
Acquisitions: SigmaKalon (2008), AkzoNobel N.A. Architectural (2013), Comex (2014)
Divestitures: Commodity Chemicals (2013), Transitions® Optical (2014), Flat Glass (2016), Europe Fiber Glass (2016)
8
2005 - 2008
Acquired From Business
Int’l Polarizer Optical
Crown Coatings Industrial
Iowa Paint Architectural
Shanghai Sunpool Architectural
Intercast Optical
Eldorado Aerospace
Ameron PMC
Dongju (Asia) Industrial
Protec (Asia) Refinish
Sierracin Aerospace
Renner Sayerlack Architectural
ICI India (Asia) Refinish
Barloworld (Asia) Architectural
SigmaKalon Arch./ PMC /
Industrial
Bonny (Asia) Refinish
BASF Coil (N/A) Industrial
Total Sales Value ~$4.5B
Notable PPG acquisitions1997 - 2000
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
2010 - Present
Acquired From Business
Bairun (Asia) Packaging
Dyrup Architectural
Ducol (S. Africa) Refinish
Colpisa (Columbia) Auto OEM/Refinish
Spraylat Industrial
Akzo Nobel N. America
Architectural
Comex Architectural
Le Joint Francais Aero/Auto OEM
Revocoat Auto OEM
Cuming Microwave Aerospace
IVC Industrial
MetoKote Coatings Services
Univer Architectural
Deutek Architectural
Futian Xinshi (Asia) Refinish
Total Sales Value ~$3.9B
Experienced global acquirer with excellent track record9
Acquisitions contribute to sales growth
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Acquisition Sales Growth Over Prior Year Notable acquisitions:
2008 – SigmaKalon
2013 – AkzoNobel NA
2014/5 – Comex (partial years)
+6% average sales growth
from acquisitions
(USD MM)
Acquisitions supplement organic growth
10
1.0
1.2
1.4
1.6
1.8
2.0
2.2
2.4
2.6
2.8
3.0
2005 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 2016
Ind
ex
55%
97%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2007 2010 2016
Coatings Optical & Specialty
Commodity Chemicals Glass
PPG Segment Net Sales*
Portfolio shift to coatings end-use markets drives earnings growth
Coatings Segments
Earnings Growth (Indexed to 2005)**
CAGR = 10%
*2005-2010 as originally reported, not adjusted for divestitures; 2016 Sales from Continuing Operations
**As originally reported, not adjusted for divestitures
~$10.2B ~$14.8B
Strengthened business portfolio
11
45%
29%
16%
10%
2016 - $14.8B
U.S. & Canada
EMEA
Asia/Pacific
Latin America
PPG’s transformation
Improved geographic profile with growing emerging regions
Sales in USD, EMEA includes Europe, Middle East, and Africa
72%
20%
6%
2%
2005 – $10.2BNet Sales*
Emerging Regions = 8% Emerging Regions = 26%
12
* 2005 – as originally reported, not adjusted for divestitures; 2016 – Sales from Continuing Operations
Other
Global paint and coatings industry (~$130B)
Recent Notable Coatings Transaction/Consolidation Activity:
PPG – SigmaKalon (2008)
PPG – AkzoNobel N.A. Architectural Coatings (2013)
PPG – Comex Mexico (2014)
AkzoNobel – ICI (2008), BASF Industrial Europe (2016)
Axalta – Former Dupont Coatings Business (2013)
Valspar – Wattyl, Ace, Inver, Quest (2010/2013/2013/2015)
Sherwin Williams – Comex (U.S. and Canada only)
BASF - Chemetall (2016)
Sherwin to acquire Valspar (2016) –Pending
Competitive Landscape
Source: Orr and Boss; Company Annual Reports; PPG estimates
PPG is a leader in industry consolidation with
many smaller competitors
13
Source: 2015 Orr and Boss Report; Company Annual Reports; PPG estimates
U.S & Canada
44%
EMEA29%
Asia/Pacific17%
Latin America
10%
Coatings geographic mix
Coatings Industry
Geographic Sales Mix
PPG Coatings
Geographic Net Sales Mix
PPG - Opportunities to expand in Asia and globally
U.S. & Canada
17%
EMEA32%
Asia Pacific43%
Latin
America
8%
14
EMEA includes Europe, Middle East, and AfricaSource: Kusumgar, Nerlfi & Growney; Company Annual Reports;
PPG estimates
PPG end-use markets
Automotive OEM, Parts,
& Aftermarket, 33%
Construction - New &
Maintenance, 43%
General Industrial, 15%
Aerospace and Marine
(New & Aftermarket), 9%
Approximate % of Total PPG Net Sales
Diverse end-use markets globally
15
0
500
1,000
1,500
2,000
2,500
2007 '08 '09 '10 '11 '12 '13 '14 15 2016
$5
$7
$9
$11
$13
$15
2004 '06 '08 '10 '12 '14 2016
CAGR = 9%
PPG Coatings Net Sales (US$B) (incl. acquisition and currency impacts)
PPG coatings overview
• Stable earnings/cash
• Growth potential
• Low capital intensity
• Technology & service
• Consolidating industry
Balanced Sales Orientation
Aggregate Coatings Segment Earnings
($MM)
Good Growth; Rapid Recovery From Recession
+140%
50%50%
PPG Coatings Net Sales Orientation
OEM Coatings
After-market /
Maintenance
Coatings
Why coatings?
16
#1 Market Position #2 Market Position #3 Market Position #4+ Market Position No Meaningful Presence
PPG global market positions
Source: Orr and Boss; 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
Lower <---- Level of Consolidation ----> Higher
---------- Participation in all end-use markets -----------
Global
Position
Arch
~$56B
General
Industrial
~$36B
Protective
& Marine
~$16B
Refinish /
Collision
~$8B
Auto OEM
~$10B
Packaging
~$3B
Aerospace
~$1B
PPG #1
AkzoNobel #2
Sherwin
Williams#3
Valspar #5
Axalta #7
BASF #8
---------- Participation in all end-use markets -----------
17
Note: RPM #4, Nippon Paint #6
Coatings end-use markets
~40%
~60%
Special-Purpose Coatings:• Aerospace
• Automotive OEM
• Automotive Refinish
• Specialty Coatings & Materials
• Coatings Services
Protective & Marine
12%
Packaging2%
Aerospace1%
Architectural
43%
General
Industrial
28%
Refinish
6%
Auto OEM
8%
Industry End-Market Demand
(~$130B Sales Value)
Source: 2015 Orr and Boss Report; Company Annual Reports;
PPG estimates
• General Industrial
• Protective & Marine
• Packaging
Architectural
Coatings
PPG Coatings End-Use Net Sales Mix
PPG is in line with the global coatings industry end-use mix
18
EBITDA from continuing operations as percent of sales as reported in company reports (excluding unusual items);
See Appendix for reconciliations.
PPG remains a margin leader across coatings sector end-use markets
17.9%19.4%
15.4%16.4%
14.0%15.2% 14.7%
20.5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
2016 Full Year EBITDA as % of Net Sales
Coatings Peers EBITDA %
19
2016 PPG Net Sales Mix
PPG business segments
Performance Coatings
• Automotive Refinish
• Aerospace
• Protective & Marine
• Architectural Coatings Americas & Asia
• Architectural Coatings EMEA (Europe,
Middle-East and Africa)
Industrial Coatings
• Automotive OEM
• Industrial Coatings
• Packaging
• Specialty Coatings & Materials
• Coatings Services
Glass
• Fiber Glass
58%
39%
3%
Performance Coatings Industrial Coatings Glass
20
Performance coatings segmentStrategic Business Units:
• Automotive Refinish
• Aerospace
• Architectural Americas & Asia Pacific
• Architectural EMEA
• Protective & Marine
Net Sales (US$B) (incl. acquisition and currency impacts)
Segment Traits:
• Distribution focus
• Solid operating margins
• Consistent cash generation
• Stable industries
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
2007 '08 '09 '10 '11 '12 '13 '14 '15 2016
Acquisition-Related
11.2%12.6%
11.8%12.9% 13.1%
13.9%14.9% 15.3%
0%
4%
8%
12%
16%
2009 '10 '11 '12 '13 '14 '15 2016
Segment Operating Margins
CAGR = 9%
21
EMEA includes Europe, Middle East, and Africa
2008 '09 '10 '11 '12 '13 '14 '15 2016
US & Canada
49%
EMEA28%
Asia20%
Latin America3%
2007 '08 '09 '10 '11 '12 '13 '14 '15 2016
Net Sales in USD (incl. acquisition and currency impacts)
PPG Refinish Sales 2016
Automotive refinish coatings
CAGR = 2%
CAGR = 13%
22EMEA includes Europe, Middle East, and Africa
Key Industry Trends
• Color complexity
• Emerging regions growth
• Technology shift to waterbase
• Value added programs and training
PPG Global Waterborne Paint Shops
2007 '08 '09 '10 '11 '12 '13 '14 '15 2016
Recent Acquisitions
Aerospace
CAGR = 5%
50%50%
Aerospace Net Sales Mix
Aftermarket OEM
Aerospace Products
• Deft Coatings
• Waterborne
• Military market
• Cuming Microwave
• Radar absorbing products
• Advanced military applications
• Sealants Europe (Le Joint Francais)
• Position in continental Europe
• Established distribution
23
• Coatings
• Sealants
• Transparencies
• Chemical Management
• Packaging
Net Sales in USD (incl. acquisition and currency impacts)
0.0
3.0
6.0
9.0
12.0
15.0
Ind. Maint.
Energy
Infrastructure
MarineAftermarket
Marine OEM
2007 '08 '09 '10 '11 '12 '13 '14 '15 2016
U.S. & Canada
EMEA
Asia
EMEA includes Europe, Middle East, and Africa
PPG PMC Net Sales 2016
PMC Industry Segments ($B)
Protective & Marine Coatings (PMC)
0%
25%
50%
75%
100%
Protective
Coatings
OEM
Aftermarket
PPG Net Sales Mix
Latin America
24Today2012
Protective
Coatings
Aftermarket
OEM
Net Sales in USD (incl. acquisition and currency impacts)
2007 2010 2013 2016
Architectural Coatings (Americas & Asia)
CAGR = 11%
National Retailers
(DIY), 40%
Company
Stores, 40%
Independent
Dealers, 20%
PPG Architectural Coatings
U.S. & Canada Net Sales Mix
0% 25% 50% 75% 100%
PPG U.S. Architectural Net Sales Mixes
Maintenance / Repaint
Non- ResidentialResidential
25%
65% 35%
New Construction
PPG U.S. & Canada
Architectural Store Count
75%
25
100
200
300
400
500
600
700
800
900
1,000
1999 2004 2006 2009 2012 Current
Net Sales in USD (incl. acquisition and currency impacts)
PPG architectural store network has room to grow
26PPG store expansion opportunities without cannibalization
Acquired 2013
Architectural Coatings Latin America
Comex Overview
• Founded in 1952
• ~4,200 independently owned/operated concessionaire locations in Mexico
• Opening 1 new store approximately every other day
• Targeted growth rate 2 times Mexican GDP growth rate
• Over 300 points-of-sale across Central America (incl. Glidden)
• Leading architectural coatings position in Mexico; well-recognized regional brands
Network
New store openings
Develop low share
territories
Penetrate key
segments
Purchase
experience
Develop categories
and brand / channel
Concessionaire goal: 1 store per 20k people
Current density: 1 store per 30k people
Consistent and Strong Growth
Concessionaire Network
27
Guatemala
Glidden
StoresHome
Center
Comes
Belize05
Honduras12
Nicaragua12
Panama
18
186
Costa Rica
El Salvador
86
17
26
Central American Architectural Network
Over 300 regional points-of-sale
Represents
points of sale
500
600
700
2013 2014 2015 2016
Architectural Coatings EMEA
Source: Company Estimates
More
Stability
in End-
Market
Maintenance,
80%
New Construction,
20%
End-Use Market Demand
#1 PPG Position
#2 PPG Position
#3 PPG Position
>#3 PPG Position
No PPG Participation
2008 2009 2010 2011 2012 2013 2014 2015 2016
Company-Owned Stores
28
EMEA includes Europe, Middle East, and Africa
Net Sales in Euro (incl. acquisitions)
Strong Market Positions
#1 or #2 in 80% of Penetrated Markets
#1 PPG Position
#2 PPG Position
#3 PPG Position
>#3 PPG Position
No PPG Participation
Iceland
United Kingdom
PortugalSpain
France
Germany Poland
Romania
Denmark
NorwaySweden
Finland
Estonia
Latvia
LithuaniaBelarus
Ukraine
TurkeyGreece
Austria
BulgariaItaly
11.1% 11.5%
14.2%
15.7%
17.1%18.0% 18.3%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
2010 2011 2012 2013 2014 2015 2016
Industrial Coatings Segment
Strategic Businesses• Automotive OEM
• Industrial
• Packaging
• Specialty Coatings & Materials
• Coatings Services
$2.0
$3.0
$4.0
$5.0
$6.0
2007 '08 '09 '10 '11 '12 '13 '14 '15 2016
U.S. & Canada
EMEA
AsiaLA
Segment Net Sales Mix
Segment Operating Margins
CAGR = 5%
29
EMEA includes Europe, Middle East, and Africa
Net Sales (US$B) (incl. acquisition and currency impacts)
All Remaining
Customers
2007 '08 '09 '10 '11 '12 '13 '14 '15 2016
U.S. & Canada
EMEA
Asia
LA
PPG Automotive OEM Coatings
Automotive OEM Coatings
CAGR = 4%
50
55
60
65
70
75
80
85
90
2007 08 '09 '10 '11 '12 '13 '14 '15 2016
Global Auto OEM Production
MM Units
PPG Auto OEM Coatings
Customer Mix
Top 7 PPG
Auto OEM
Customers
U.S.
Based
Non-U.S.
Based
30
EMEA includes Europe, Middle East, and Africa
CAGR = 3%
Net Sales in USD (incl. acquisition and currency impacts)
PPG
Akzo Nobel
Valspar
Axalta
Sherwin Williams
BeckersBASF
NipponHenkel
Others60%
U.S. & Canada
EMEA
Asia
LA
EMEA includes Europe, Middle East, and Africa
2004 '06 '08 '10 '12 '14 2016
PPG Asian Industrial Coatings SBU Net Sales
2007 '08 '09 '10 '11 '12 '13 '14 '15 2016
Industrial Coatings SBU Net Sales Mix
Source: PPG Estimates
Industrial Coatings SBU
CAGR = 5%
CAGR = 13%
Fragmented but Consolidating Industry
31
Net Sales in USD (incl. acquisition and currency impacts)
'07 '08 '09 '10 '11 '12 '13 '14 '15 2016
Packaging Coatings
CAGR = 2%
Beverage
Food
Other
Industry Container Use
Source: PPG Estimates
Interior
ExteriorEnds
Other
32
BPA-NI technologies
Key Trends
• Beverage can industry remains strong
with growth of +3% globally
• Conversion to BPA-NI technology
continues for food and beverage cans
across Europe and North America
Net Sales in USD (incl. acquisition and currency impacts)
2007 '08 '09 '10 '11 '12 '13 '14 '15 2016
Specialty Coatings & Materials
CAGR = 5%
Key PPG Products / End-Use Markets
33
Silica
TESLIN® substrate
Optical Monomers and Dyes
OLED materials
• Silica –Tires, battery separators, coatings, various industrial uses
• Teslin® – Printing materials, labels, secure credentials/IDs, various industrial and consumer uses
• Monomers and Dyes – Materials and coatings used in eyeglass lenses
• OLED – OLED materials for Universal Display Corporation
Net Sales in USD (incl. acquisition and currency impacts)
R & D Expenditures ($MM)
~3% of sales annually
2015
2014
2013
2012
2016
34
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
Defensible Positions
Sustainable Innovation
Cross-industry
synergies
New Product Sales
Innovation Drives Success
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
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
487
494
499
471
436
$350 $400 $450 $500 $550
$2.88
$3.78
$4.75
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
$5.50
$6.00
+19% CAGR
PPG adjusted earnings per diluted share trend
Key Drivers
• Global business
expansion
• Innovation-led organic
growth
• Ongoing, aggressive cost
management
• Ongoing and disciplined
cash deployment
• Acquisitions &
synergies
• Share repurchases
• Uneven global end-market
demand 2015/2016
Transformed portfolio and accretive cash deployment drive earnings growth
* Adjusted Earnings Per Diluted Share from Continuing Operations – See appendix for reconciliations to reported EPS
$5.43
35
$5.82
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
36
EBITDA from continuing operations as percent of sales as reported in company reports (excluding unusual items);
See Appendix for reconciliations.
16.2%
15.0%
11.9%12.2% 12.4%
17.0%
15.0%
13.6%12.7% 12.4%
17.9%
15.4%
13.9% 14.3%
12.9%
17.2%
19.0%
16.3%16.0%
14.5%13.8%
18.4%
19.4%
15.4%
16.4%
14.7%14.0%
20.5%
-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 CoatingsSegments
Total Valspar Total SherwinWilliams
AkzoPaints/Coatings
Total RPM Total Axalta
Full Year EBITDA as % of Net Sales
2012 2013 2014 2015 2016
N/A
Coatings Peers EBITDA %
Consistent coatings industry margin expansion across varying economic conditions
37
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
0
100
200
300
400
500
600
2009 '10 '11 '12 '13 '14 '15 2016
EB
IT M
arg
in o
n S
ale
s
Earn
ing
s
Total PPG Europe, Middle East and Africa
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2009 '10 '11 '12 '13 '14 '15 2016
Sale
s
Architectural Coatings EMEA Other PPG Businesses
PPG Net Sales Mix (MM €) Earnings (MM €)
Record European earnings despite difficult economic conditions
39
PPG Asia Pacific Manufacturing Footprint
Extensive region-wide coverage40
ChinaTianjin
Suzhou
Foshan
Wuhu
Zhangjiagang
Songjiang
Jiading
Kunshan
Wuhan
Nansha
ThailandBangplee
KoreaCheonan
Busan
Ulsan**
X
AustraliaClayton
Villawood
X
MalaysiaPetaling Jaya
New ZealandAuckland
X
TaiwanAlltech
Taoyuan
Chia Yi**
IndonesiaJakarta
JapanNagoya
Vietnam
IndiaSriperumbudur**
Moraiya**
** Joint Venture
X
X
X
XXX
X
X
Philipines
SingaporeSingapore
1,679
2,408 2,431
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2008 2012 2016
Consolidated Net Sales*
151
280
387
$0
$100
$200
$300
$400
$500
2008 2012 2016
Segment Income* 12%
CAGR
Significant profitable growth over time
$MM - USD
5%
CAGR
* Recast for discontinued operations
PPG Asia Pacific financials
41
$MM - USD
Strong and growing Asian presence (excl. Japan)
Many Leading Asia Markets (excl. Japan)
IndustrialAutomotive OEM
General Industrial
Packaging
PerformanceAuto Refinish
Protective & Marine
Aerospace
Architectural
Performance
Industrial
Broad, full coatings business portfolio
PPG Asia Net Sales Mix (2016)Industry Coatings Demand for Asia
Coatings Industry in Asia
Remains Fragmented
Sources: PPG Internal estimates (excludes Japan includes ARCH)
PPG Market
Position
PPG ’10 - ’16
CAGR
Automotive OEM #1 9%
General Industrial #2 6%
Packaging #1 6%
Auto Refinish #1 5%
Aerospace #1 7%
Protective/Marine #4 -11%
Architectural #7 flat
Total Coatings #3 3%
Akzo8%
Nippon 7%
PPG 6%
Asian Paints 6%
Kansai 3%
Valspar 2%
BASF 2%
Jotun 2%
Dulux 2%
Axalta 2%
KCC 1%
Others 58%
64%12%
12%
7%5%
China
India
SoutheastAsiaKorea
Australia
42
Robust cash generation over time while transforming the business portfolio
$1,978
$1,482
$2,393
$1,745
$1,183
$1,455
$1,863
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
YE'10 '11 '12 '13 '14 '15 YE'16
Cash & Short Term Investments
* As originally reported, not adjusted for business divestitures
Millions USD
PPG cash trends
43
$1,000
$1,250
$1,500
$1,750
$2,000
2010 '11 '12 '13 '14 '15 2016
Cash From Operations*
+ Adjusted Cash from Operations; excluding cash paid to fund the Pittsburgh Corning asbestos trust
Ad
juste
d +
$400
$350
$415
$1,050
Capital Spending
Acquisitions
Dividends
ShareRepurchases
Cash Use Summary:
Grow Business ~60%
Return to Shareholders ~40%
20%
37%17%
26%
Past 10 Years (~$20B)(2007 – 2016)
Approximate 2016 Cash Uses
Millions of USD – As reported, not adjusted for business divestitures
Legacy of consistent and prudent cash deployment
Balanced cash deployment
44
* Adjusted to exclude certain non-recurring charges, see appendix for reconciliation. All years as
originally reported, not adjusted for business divestitures.
ROC growth demonstrates successful acquisition integration
PPG return on capital (adjusted)*
45
17.2%
11.3%
8.5%
14.0%
16.6%
18.3%
16.1% 16.0%17.2% 16.7%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Cap
ital ($
MM
)
Re
turn
on
Cap
ital
Capital Return on Capital
$0
$200
$400
$600
$800
$1,000
$1,200
2005 '07 '09 '11 '13 '15 ‘16
0
100
200
300
400
500
600
700
2017 2018 2019 2020 2021 2022 2025 2027 2029 2038 2040 2044
USD Notes
EUR Notes
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
'78 '81 '84 '87 '90 '93 '96 '99 '02 '05 '08 '11 '14
45 Years of Increased DividendsDividends per share – Adjusted for
stock splits
US$MM
Long-Term Debt Maturity
Schedule13%
7%
3% 3%3%
2% 2%3%
4%
3%
0%
2%
4%
6%
8%
10%
12%
14%
1980 || 1990 || '02 '04 '06 '08 '10 '12 '14 '16
Capital Spending as % of Sales (As originally reported, not adjusted for business
divestitures)
Last 5 years
Average =
~3.0%
PPG Share Repurchases
US$MM
Average
~$515MM
Average
~$750MM
PPG financial hallmarks
46‘16
Last 3
years =
9%
PPG shared services centers
Ohio, USA
Brno, Czech Republic
Kuala Lumpur, Malaysia
Tianjin, China
47
Mexico City, Mexico
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 14,751 14,270 11,856 4,191 4,814 14,197 9,432 4,074
Segment
Income/Net Income $586 2,356 1,133 353 357 1,054 ** 1,101 ** 48
Unusual or
Infrequent Charges1,251 -- -- 22 -- (17) 15 247 *
Income Taxes 241 -- 463 81 126 394 -- 40
Interest, net 99 -- 154 91 81 114 -- 178
Depreciation &
Amortization462 415 198 98 111 606 274 322
EBITDA, adjusted 2,639 2,771 1,948 645 675 2,151 1,390 835
% of Sales 17.9% 19.4% 16.4% 15.4% 14.0% 15.2% 14.7% 20.5%
EBITDA as % of Sales (excluding specials):
2016 EBITDA Reconciliation
49
Amounts in millions, except percentages, reflects most recent year-end. Compiled from publically available segment disclosures.
*Excludes foreign exchange remeasurement losses & recurring stock-based compensation
**Includes results from associates and joint ventures
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 14,766 14,241 11,339 4,392 4,595 14,859 9,892 4,087
Segment
Income/Net Income 1,338 2,287 1,054 400 239 1,060 ** 1,137 ** 98
Unusual or
Infrequent Charges202 -- -- (22) -- (111) -- 86 *
Income Taxes 424 -- 495 164 225 416 -- 63
Interest, net 86 -- 62 81 69 114 -- 197
Depreciation &
Amortization471 420 199 93 99 626 296 308
EBITDA, adjusted 2,521 2,707 1,810 716 632 2,105 1,433 752
% of Sales 17.1% 19.0% 16.0% 16.3% 13.8% 14.2% 14.5% 18.4%
EBITDA as % of Sales (excluding specials):
2015 EBITDA Reconciliation
50
Amounts in millions, except percentages, reflects most recent year-end. Compiled from publically available segment disclosures.
Competitor data not adjusted for business divestitures for comparative purposes
*Excludes foreign exchange remeasurement losses & recurring stock-based compensation
**Includes results from associates and joint ventures
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 15,360 14,250 11,130 4,522 4,376 14,296 9,427 4,362
Segment
Income/Net Income1,133 2,156 866 345 292 600 ** 793 ** 35
Unusual or
Infrequent Charges408 -- 26 41 -- 338 253 188 *
Income Taxes 259 -- 392 146 119 252 -- 2
Interest, net 137 -- 64 65 65 156 -- 217
Depreciation &
Amortization476 401 199 101 90 618 299 309
EBITDA, adjusted 2,413 2,557 1,547 698 566 1,964 1,345 751
% of Sales 15.7% 17.9% 13.9% 15.4% 12.9% 13.7% 14.3% 17.2%
EBITDA as % of Sales (excluding specials):
2014 EBITDA Reconciliation
51
Amounts in millions, except percentages, reflects most recent year-end. Compiled from publically available segment disclosures.
Not adjusted for business divestitures for comparative purposes
*Excludes foreign exchange remeasurement losses & recurring stock-based compensation
**Includes results from associates and joint ventures
Total
PPG
PPG
Coatings
Segments
Total
Sherwin
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 9,663
Segment
Income/Net Income950 1,867 753 289 256 661 ** 923 **
Unusual or
Infrequent Charges253 -- 54 40 -- 287 --
Income Taxes 342 -- 333 135 106 111 --
Interest, net 153 -- 59 63 60 200 --
Depreciation &
Amortization452 377 188 88 84 616 300
EBITDA, adjusted 2,150 2,244 1,388 615 505 1,875 1,223
% of Sales 15.1% 17.0% 13.6% 15.0% 12.4% 12.9% 12.7%
EBITDA as % of Sales (excluding specials):
2013 EBITDA Reconciliation
52
Amounts in millions, except percentages, reflects most recent year-end.
Not adjusted for business divestitures for comparative purposes
**Includes results from associates and joint ventures
Total
PPG
PPG
Coatings
Segments
Total
Sherwin
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 9,881
Segment
Income/Net Income663 1,567 631 292 234 (1,670) ** (1,470) **
Unusual or
Infrequent Charges346 -- 4 25 -- 2,520 2,357
Income Taxes 251 -- 276 125 94 172 --
Interest, net 170 -- 40 68 68 267 --
Depreciation &
Amortization399 323 179 94 74 635 317
EBITDA, adjusted 1,829 1,890 1,130 604 470 1,924 1,204
% of Sales 14.4% 16.2% 11.9% 15.0% 12.4% 12.5% 12.2%
EBITDA as % of Sales (excluding specials):
2012 EBITDA Reconciliation
53
Amounts in millions, except percentages, reflects most recent year-end.
Not adjusted for business divestitures for comparative purposes
**Includes results from associates and joint ventures
1st Quarter Reporting Period
Adjusted EPS Reconciliation
Amounts in Millions of USD except EPS54
Continuing Operations Discontinued Operations Total PPG
Net Income EPS Net Income EPS Net Income EPS
First Quarter 2016
Net Income Attributable to PPG as Reported $ 337 $ 1.25 $ 10 $ 0.04 $ 347 $ 1.29
Transaction-related costs 1 0.01 -- -- 1 0.01
Asset write-down 3 0.01 -- -- 3 0.01
Adjusted Net Income Attributable to PPG $ 341 $ 1.27 $ 10 $ 0.04 $ 351 $ 1.31
First Quarter 2015
Net Income Attributable to PPG as Reported $ 309 $ 1.12 $ 13 $ 0.05 $ 322 $ 1.17
Transaction-related costs 3 0.01 3 0.01 6 0.02
Adjusted Net Income Attributable to PPG $ 312 $ 1.13 $ 16 $ 0.06 $ 328 $ 1.19
First Quarter 2014
Net Income Attributable to PPG as Reported $ 279 $ 0.99 $ 983 $ 3.49 $ 1,262 $ 4.48
Transaction-related costs 2 0.01 -- -- 2 0.01
Adjusted Net Income Attributable to PPG $ 281 $ 1.00 $ 983 $ 3.49 $ 1,264 $ 4.49
First Quarter 2013
Net Income Attributable to PPG as Reported $ 190 $ 0.64 $ 2,220 $ 7.51 $ 2,410 $ 8.15
Legacy pension costs 13 0.04 -- -- 13 0.04
Environmental costs 8 0.03 8 0.03
Transaction-related costs 5 0.01 -- -- 5 0.01
U.S. tax law change enacted in 2013 (10) (0.03) -- -- (10) (0.03)
Adjusted Net Income Attributable to PPG $ 206 $ 0.69 $ 2,220 $ 7.51 $ 2,426 $ 8.20
First Quarter 2012
Net Income/(Loss) Attributable to PPG as Reported $ (43) $ (0.14) $ 56 $ 0.18 $ 13 $ 0.04
Business restructuring 137 0.45 26 0.08 163 0.53
Environmental reserves 99 0.32 -- -- 99 0.32
Transaction-related costs 4 0.01 -- -- 4 0.01
Adjusted Net Income Attributable to PPG $ 197 $ 0.64 $ 82 $ 0.26 $ 279 $ 0.90
Continuing Operations Discontinued Operations Total PPG
Net Income EPS Net Income EPS Net Income EPS
Second Quarter 2016
Net Income Attributable to PPG as Reported $ 351 $ 1.30 $ 19 $ 0.07 $ 370 $ 1.37
Transaction-related costs 5 0.02 -- -- 5 0.02
Asset write-downs 8 0.03 -- -- 8 0.03
Gain on sale of equity affiliate (13) (0.05) -- -- (13) (0.05)
Net tax effect of asbestos settlement funding 128 0.48 -- -- 128 0.48
Adjusted Net Income Attributable to PPG $ 479 $ 1.78 $ 19 $ 0.07 $ 498 $ 1.85
Second Quarter 2015
Net Income Attributable to PPG as Reported $ 319 $ 1.16 $ 18 $ 0.07 $ 337 $ 1.23
Transaction-related costs 15 0.05 -- -- 15 0.05
Business restructuring charge 106 0.39 -- -- 106 0.39
Adjusted Net Income Attributable to PPG $ 440 $ 1.60 $ 18 $ 0.07 $ 458 $ 1.67
Second Quarter 2014
Net Income Attributable to PPG as Reported $ 387 $ 1.38 $ (1) -- $ 386 $ 1.38
Pension settlement charge 3 0.01 -- -- 3 0.01
Transaction-related costs 2 0.01 -- -- 2 0.01
Adjusted Net Income/(Loss) Attributable to PPG $ 392 $ 1.40 $ (1) -- $ 391 $ 1.40
Second Quarter 2013
Net Income Attributable to PPG as Reported $ 317 $ 1.09 $ 24 $ 0.08 $ 341 $ 1.17
Transaction-related costs 13 0.05 2 0.01 15 0.06
Adjusted Net Income Attributable to PPG $ 330 $ 1.14 $ 26 $ 0.09 $ 356 $ 1.23
Second Quarter 2012
Net Income Attributable to PPG as Reported $ 260 $ 0.84 $ 102 $ 0.33 $ 362 $ 1.17
Business separation costs -- -- 3 0.01 3 0.01
Adjusted Net Income Attributable to PPG $ 260 $ 0.84 $ 105 $ 0.34 $ 365 $ 1.18
2nd Quarter Reporting Period
Amounts in Millions of USD except EPS
Adjusted EPS Reconciliation
55
Amounts in Millions of USD except EPS
Continuing Operations Discontinued Operations Total PPG
Net Income EPS Net Income EPS Net Income EPS
Third Quarter 2016
Net (Loss)/Income Attributable to PPG as Reported $ (201) $ (0.75) $ 17 $ 0.06 $ (184) $ (0.69)
Pension settlement charges 616 2.31 -- -- 616 2.31
Adjusted Net Income Attributable to PPG $ 415 $ 1.56 $ 17 $ 0.06 $ 432 $ 1.62
Third Quarter 2015
Net Income Attributable to PPG as Reported $ 415 $ 1.52 $ 18 $ 0.07 $ 433 $ 1.59
Transaction-related costs 1 -- -- -- 1 --
Pension settlement charge 5 0.02 -- -- 5 0.02
Adjusted Net Income Attributable to PPG $ 421 $ 1.54 $ 18 $ 0.07 $ 439 $ 1.61
Third Quarter 2014
Net Income Attributable to PPG as Reported $ 346 $ 1.24 $ 25 $ 0.09 $ 371 $ 1.33
Transaction-related costs 2 0.01 -- -- 2 0.01
Pension settlement charge 2 0.01 -- -- 2 0.01
Legacy environmental reserves 86 0.30 -- -- 86 0.30
Gain on asset sales (59) (0.21) (14) (0.05) (73) (0.26)
Adjusted Net Income Attributable to PPG $ 377 $ 1.35 $ 11 $ 0.04 $ 388 $ 1.39
Third Quarter 2013
Net Income Attributable to PPG as Reported $ 195 $ 0.67 $ 31 $ 0.11 $ 226 $ 0.78
Transaction-related costs 3 0.01 1 -- 4 0.01
Legacy environmental reserves 56 0.19 -- -- 56 0.19
Business restructuring 73 0.25 -- -- 73 0.25
Adjusted Net Income Attributable to PPG $ 327 $ 1.12 $ 32 $ 0.11 $ 359 $ 1.23
Third Quarter 2012
Net Income Attributable to PPG as Reported $ 259 $ 0.83 $ 80 $ 0.26 $ 339 $ 1.09
Business separation costs -- -- 9 0.03 9 0.03
Adjusted Net Income Attributable to PPG $ 259 $ 0.83 $ 89 $ 0.29 $ 348 $ 1.12
56
3rd Quarter Reporting Period
Adjusted EPS Reconciliation
57
Continued Operations Discontinued Operations Total PPG
Net Income EPS Net Income EPS Net Income EPS
Fourth Quarter 2016
Net Income Attributable to PPG as Reported $ 77 $ 0.29 $ 265 $ 1.01 $ 342 $ 1.30
Business restructuring charge 146 0.55 - - 146 0.55
Environmental remediation charge 51 0.20 - - 51 0.20
Loss on divestiture of European fiber glass business 44 0.17 - - 44 0.17
Net gain on disposals of ownership interests in business
affiliates
(33) (0.13)
- -
(33) (0.13)
Net tax effect of asbestos settlement trust funding 23 0.09 - - 23 0.09
Premium on early retirement of debt 5 0.02 - - 5 0.02
Adjusted Net Income Attributable to PPG $ 313 $ 1.19 $ 265 $ 1.01 $ 568 $ 2.20
Fourth Quarter 2015
Net Income Attributable to PPG as Reported $ 295 $ 1.09 $ 19 $ 0.07 $ 314 $ 1.16
Transaction-related costs 11 0.04 - - 11 0.04
Equity affiliate debt refinancing charge 7 0.03 - - 7 0.03
Adjusted Net Income Attributable to PPG $ 313 $ 1.16 $ 19 $ 0.07 $ 332 $ 1.23
Fourth Quarter 2014
Net Income Attributable to PPG as Reported $ 73 $ 0.26 $ 10 $ 0.04 $ 83 $ 0.30
Debt refinancing charge 200 0.72 - - 200 0.72
Transaction-related costs 35 0.12 1 0.01 36 0.13
Favorable foreign tax ruling (29) (0.11) - - (29) (0.11)
Adjusted Net Income Attributable to PPG $ 279 $ 0.99 $ 11 $ 0.05 $ 290 $ 1.04
Fourth Quarter 2013
Net Income Attributable to PPG as Reported $ 230 $ 0.80 $ 24 $ 0.08 $ 254 $ 0.88
Transaction-related costs 3 0.01 1 0.01 4 0.02
Adjusted Net Income Attributable to PPG $ 233 $ 0.81 $ 25 $ 0.09 $ 258 $ 0.90
Fourth Quarter 2012
Net Income Attributable to PPG as Reported $ 173 $ 0.56 $ 54 $ 0.17 $ 227 $ 0.73
Transaction-related costs 3 0.01 8 0.02 11 0.03
Adjusted Net Income Attributable to PPG $ 176 $ 0.57 $ 62 $ 0.19 $ 238 $ 0.76
4th Quarter Reporting Period
Adjusted EPS Reconciliation
Amounts in Millions of USD except EPS
PPG Adjusted Earnings Per Share Trend Reconciliation
Amounts in Millions of USD except EPS
Adjusted EPS from Continuing Operations
Y-O-Y Change in Adjusted EPS from Continuing
Operations
Period 2012 2013 2014 2015 2016 2013 vs. 2012 2014 vs. 2013 2015 vs. 2014 2016 vs. 2015
1Q $ 0.64 $ 0.69 $ 1.00 $ 1.13 $ 1.27 $ 0.05 $ 0.31 $ 0.13 $ 0.14
2Q 0.84 1.14 1.40 1.60 1.78 0.30 0.26 0.20 0.18
3Q 0.83 1.12 1.35 1.54 1.56 0.28 0.27 0.16 0.02
4Q 0.57 0.81 0.99 1.16 1.19 0.25 0.17 0.17 0.03
Full Year* $ 2.88 $ 3.78 $ 4.75 $ 5.43 5.82 $ 0.90 $ 0.97 $ 0.68 $ 0.39
Year over year percentage increase in EPS +31% +26% +14% +7%
*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.
58
FULL YEAR 2016 2015 2014 2013 2012 2011
Net Earnings as Reported $564 $1,405 $1,133 $1,034 $941 $1,095
Adjustments:
Debt refinancing charge - - 200 - - -
Business restructuring charges 146 106 - 73 163 -
Equity affiliate debt refinancing charge - 7 - - - -
Transaction-related costs 6 32 42 28 27 -
Environmental remediation charges 51 - 86 64 99 -
Pension settlement charges 616 5 - 13 - -
Tax rulings/law changes - - (24) (10) - -
Gain on asset dispositions - - (73) - - -
Loss on divestiture of European fiber glass business 44 - - - - -
Net gain on disposals of ownership interest in business
affiliates
(55) - - - - -
Net tax effect of asbestos settlement funding 151 - - - - -
Charge related to early retirement of debt 5 - - - - -
Asset write-downs 20 - - - - -
Total Net Adjustments $984 $150 $231 $168 $289 -
Adjusted Net Earnings $1,548 $1,555 $1,364 $1,202 $1,230 $1,095
Adjusted Net Earnings
Amounts in Millions of USD – Not adjusted for business divestitures for comparative purposes
59
FULL YEAR 2010 2009 2008 2007 2006 2005
Net Earnings as Reported $769 $336 $538 $834 $711 $596
Adjustments:
Business restructuring charge - 141 110 - 23 -
Pension settlement charge 85 - - - - -
Divestiture-related costs - - 9 30 - -
Acquisition-related costs - - 100 4 - -
Environmental Charge - - - - 106 -
Legal Settlement - - - - - 117
Debt Refinancing - - - - - 12
Impairments/Other - - - - 2 38
Total Net Adjustments $85 $141 $219 $34 $131 $167
Adjusted Net Earnings $854 $477 $757 $868 $842 $763
Adjusted Net Earnings
60
Amounts in Millions of USD – Not adjusted for business divestitures for comparative purposes
FULL YEAR2016 2015 2014 2013 2012
Adjusted Net Earnings $1,548 $1,555 $1,364 $1,202 $1,230
Net Interest Expense (after-tax) 94 95 143 149 157
Adjusted Net Earnings + Net Interest
Expense
$1,642 $1,650 $1,507 $1,351 $1,387
Capital (Average Debt & Average Equity)
as Reported
$9,334 $9,515 $9,200 $8,212 $7,371
Net Adjustment (see Net Earnings
Reconciliations)
984 150 231 168 289
Adjusted Capital** $9,841 $9,603 $9,383 $8,395 $7,592
Adjusted Return on Capital 16.7% 17.2% 16.0% 16.1% 18.3%
Adjusted Return on Capital
61
Amounts in Millions of USD, except percentages - Not adjusted for business divestitures for comparative purposes
**This table does not foot due to the rounding effect of Net Adjustments
FULL YEAR2011 2010 2009 2008 2007
Adjusted Net Earnings $1,095 $854 $477 $757 $868
Net Interest Expense (after-tax) 158 140 135 175 66
Adjusted Net Earnings + Net Interest
Expense
$1,253 $994 $612 $932 $934
Capital (Average Debt & Average Equity)
as Reported
$7,526 $6,685 $7,088 $8,053 $5,403
Net Adjustment (see Net Earnings
Reconciliations)
- 85 141 219 34
Adjusted Capital** $7,526 $6,753 $7,237 $8,272 $5,437
Adjusted Return on Capital 16.6% 14.0% 8.5% 11.3% 17.2%
Adjusted Return on Capital
Amounts in Millions of USD, except percentages - Not adjusted for business divestitures for comparative purposes
**This table does not foot due to the rounding effect of Net Adjustments
62
2016 Quarterly Financial Results by Reportable SegmentPPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES (Continuing Operations)
BUSINESS SEGMENT INFORMATION (unaudited)
Q1 Q2 Q3 Q4 Full Year
2016 2016 2016 2016 2016
Net sales
Performance Coatings $ 2,039 $ 2,338 $ 2,223 $ 1,980 $ 8,580
Industrial Coatings 1,372 1,444 1,437 1,437 5,690
Glass 133 139 129 80 481
TOTAL $ 3,544 $ 3,921 $ 3,789 $ 3,497 $ 14,751
Segment income
Performance Coatings $ 279 $ 428 $ 368 $ 239 $ 1,314
Industrial Coatings 265 292 249 236 1,042
Glass 14 15 12 12 53
TOTAL 558 735 629 487 2,409
Items not allocated to segments
Legacy items (11) (11) (4) (7) (33)
Environmental remediation charge - - - (82) (82)
Transaction-related costs (2) (7) - - (9)
Business restructuring charge - - - (197) (197)
Pension settlement charges - - (968) - (968)
Loss on European fiber glass business - - - (42) (42)
Net gain on disposals of ownership interests in business affiliates - 20 - 49 69
Asset write-downs (4) (10) - - (14)
Interest expense, net of interest income (24) (24) (28) (23) (99)
Other corporate expense (61) (59) (42) (45) (207)
INCOME BEFORE INCOME TAXES $ 456 $ 644 $ (413) $ 140 $ 827
Amounts in Millions of USD63
www.ppg.com
Thank you for your interest in PPG
Industries, Inc.
Contact Information:
Investors:
Scott Minder
(412) 434-3466
64