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

2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

Page 1: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

2015 Shareholders’ Meeting

PPG Industries, Inc.

April 16, 2015

Page 2: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

2

Key Topics

Outlook and Focus

Achievements in 2014

First Quarter 2015 Results

2

Page 3: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

3

0

0.1

0.2

0.3

0.4

2011 2012 2013 2014

PPG II/III Spill & Release Rate

Category II & III Spills and Releases

0

0.1

0.2

0.3

0.4

0.5

2011 2012 2013 2014

PPG Injury & Illness Rate

PPG Injury & Illness Rate

2014 Actual 0.35

Improving Trend Continues Exemplary Performance

Improved 2014 Safety and Environmental Performance

3

Page 4: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

Achievements in 2014

Page 5: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

Achieved Record Financial Results

• Record net sales from continuing operations of $15.4 billion, an increase of 8 percent

• Record adjusted earnings per diluted share from continuing operations of $9.75*, up 27 percent

• Record earnings from each major region

• Record cash flow of $1.8 billion from continuing operations

*A reconciliation to the U.S. GAAP earnings per diluted share from continued operations is available in PPG’s earnings release dated January 15, 2015.

5

Page 6: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

Sales / Margin PTPI / EPS*

* Excluding Specials

Sales $B PTPI $B

Deployed Record Cash to Grow Company, Reward Shareholders

• Deployed more than $4.1B

to grow company and

reward shareholders

6

$587

$2,427*

$750

$361

2014 Select Cash Uses

Capital Spending Acquisitions

Share Repurchases Dividends

100% = $4,135MM

*The figure is inclusive of acquired debt repaid.

Page 7: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

7

Increased Capital Investments to Drive Global Growth

Capital Spending (excl. acquisitions)

$MM

Current Growth Projects:

• Cleveland, Ohio expansion

• Wichita Falls, Texas investment

• Zhangjiagang, China expansions

• San Juan del Rio, Mexico expansion

• Cheonan, Korea resin capacity

• Tianjin, China expansions

• Sumaré, Brazil resin capacity

$240

$299$330

$494

$587

0

100

200

300

400

500

600

700

2010 2011 2012 2013 2014

Page 8: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

PPG Investment and Growth in the Pittsburgh Region

• PPG Establishes Regional Headquarters for Architectural Coatings in Cranberry

$2.7MM investment

118,000 sq. foot facility

~475 employees currently located at the new facility

• PPG Invests in New R&D Lab for Architectural Coatings within Harmar Facility

$13MM investment

Established 65,000 sq. ft. of new office and lab space

~70 Architectural Coatings employees in R&D and technical service

8

Page 9: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

Expanded PPG Paints Branded Company-owned Stores

• More than 900 total company

owned stores across U.S.,

Canada and Puerto Rico

• Approximately 630 PPG

Paints® stores in the U.S.

19 PPG Paints stores in

Western Pennsylvania

9

Page 10: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

Increased R&D Investments to Grow Innovation Pipeline

R&D Expenditures

2010

Investing for Growth:

• Research and development

investment averaged 3 percent of

sales

• Aim to generate 25% of sales from

new and innovative products

$MM

$371$406

$444$479

$509

0

100

200

300

400

500

600

2010 2011 2012 2013 2014

10

Page 11: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

Completed Significant Strategic Actions

Acquired Comex, leading architectural coatings supplier in Mexico

• Additional Acquisitions:

Specialty coatings supplier, The Homax Group

High-heat-resistant coatings supplier, Hi-Temp Coatings

Panama-based protective and marine coatings distributor, Canal Supplies

N.A. architectural dealers Westmoreland Supply, Masterwork Paint Company and Painter’s Supply

• Divestitures:

Ownership interest in Transitions Optical

Mt. Zion, Illinois (U.S.A.) flat glass facility

Hi-Temp

11

Page 12: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

12

Coatings

Glass

PPG Net Sales

Continued PPG’s Transformation

Coatings

Chemicals

Glass

Coatings

Chemicals

Glass

Coatings 55% Coatings 74% Coatings 93%

Specialty Materials

2004

100% = $9.5B

2009

100% = $12.2B

Specialty Materials

2014

100% = $15.4B

Page 13: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

13

PPG Continues to Deliver Strong Shareholder Returns

Comparison of Five-Year Total ReturnIndexed to 2009

100

150

200

250

300

350

400

450

'09 '10 '11 '12 '13 '14

PPG 100 148 151 251 357 440

Peer Group 100 122 114 139 198 228

S&P 500 100 115 117 136 180 205

PPG

Peer Group

S&P 500

* Peer Group includes AkzoNobel, The Dow Chemical Co., Eastman Chemical Co., E.I. DuPont de Nemours & Co., Masco Corp., RPM International Inc.,

The 3M Company, The Sherwin-Williams Co. and The Valspar Corp.

S&P 500 100 115 117 136 180 205

Peer Group 100 122 114 139 198 228

PPG 100 148 151 251 357 440

Page 14: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

2014 Recap: Another Successful and Transformational Year

• Strengthened our global coatings leadership position

• Achieved record financial results

• Continued the portfolio

transformation

Comex acquisition

Transitions ownership divestiture

• Increased our capital investment

to drive organic growth

• Stock price increased by 22%

to $231.15 at 12/31/14

• 10% dividend increase

14

Page 15: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

First Quarter 2015 Results

Page 16: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

First Quarter 2015 results(millions except per share data)

Q1 2015 Q1 2014

Net sales (continuing operations) $3,662 $3,636

Net income attributable to PPG (continuing operations) $321 $277

Nonrecurring charges (continuing operations) $6 $2

Adjusted net income attributable to PPG (continuing operations) $327 $279

Earnings per diluted share (continuing operations)$2.33 $1.97

Adjusted earnings per diluted share (continuing operations) $2.37 $1.98

16

*A reconciliation to the U.S. GAAP earnings per diluted share from continued

operations is available in PPG’s earnings release dated April 16, 2015.

Page 17: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

Strategic Actions in 2015

• Acquired REVOCOAT, a global supplier

of sealants, adhesives and damper

products for the automotive industry

• Submitted offer to acquire a majority

interest in the aerospace and

automotive sealants businesses of Le

Joint Français (LJF)

• Completed $40 million expansion

project at Sumaré, Sao Paulo, Brazil,

coatings manufacturing facility

17

Page 18: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

Outlook and Focus

Page 19: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

2015 Regional Economic Outlook

• North America

Regional economic growth continues

• Europe

Continued recovery and improving market conditions

Regional currency weakness

• Asia Pacific

Growth rates moderating

Strong automotive outlook

• South America

Mixed outlook by country

Currency volatility

19

Page 20: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

Our Vision

• To be the world’s leading coatings company by consistently

delivering high-quality, innovative and sustainable solutions

that customers trust to protect and beautify their products

and surroundings.

20

Page 21: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

Our Mission

• Act with integrity at all times and be true to our values and ethics.

• Deliver consistent sales and earnings growth.

• Develop innovative products to meet future needs.

• Work safely, protect the environment and support the communities

where we operate.

• Achieve superior shareholder returns.

21

Page 22: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

Our Strategy

22

To strengthen our position as the world’s leading coatings company.

• Growth

Deliver consistent volume growth.

Expand in markets and regions where we are underrepresented.

Continue to lead the consolidation of the coatings industry.

Invest in building the PPG and product specific brands.

• Operational Excellence

Maintain a strong focus on cost management and profit improvement.

Optimize supply chain and continuously improve working capital management.

• Products and Services

Develop innovative solutions to address our customers’ greatest needs.

Expand our global color expertise.

Provide exceptional customer service and support.

Page 23: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

23

PPG Continues Focus On Sustainability

Page 24: 2015 Shareholders’ Meeting - PPG Industries/media/Files/P/PPG-IR/presentations/0416… · Strategic Actions in 2015 • Acquired REVOCOAT, a global supplier of sealants, adhesives

2015 Shareholders’ Meeting

PPG Industries, Inc.

April 16, 2015