Sherwin-Williams Company (the) · NYSE:SHW

Sherwin-Williams Company (the) — The Sherwin-Williams Company — Investor Day (May 2011)

20 slides from Sherwin-Williams Company (the)'s investor day presentation, May 12, 2011

  1. Slide 1: Financial Overview

    Financial Overview ay Sean Hennessy “t Senior V.P. Finance & CFO THE procrenl rye COMPANY

  2. Slide 2: Consolidated Sales

    SHERWIN :| WILLIAMS. yet Consolidated Sales 7,810 8,005 7,980 7,776 7,094 2 Ss = FH 2002 2003 2004 2005 2006 2007 2008 2009 2010 % Change vs. Prior Year: 2.3 4.3 13.1 17.6 8.6 2.5 (0.3) (11.1) 9.6 Financial Community Presentation — May 12, 2077

  3. Slide 3: Consolidated Gross Profit

    SHERWIN | WILLIAMS. $ Millions Consolidated Gross Profit = $ Gross Profit 3,598 3 499 3,481 — %of Sales 3413 | 2,249 2,308 5 op M43 Waa 442 ar 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Financial Community Presentation — May 12, 2077

  4. Slide 4: Selling, General & Administrative Expense

    SHERWIN | WILLIAMS. $ Millions Selling, General & Administrative Expense _ §$SG8A eee 2,644 -% to Sales 2,513 2,597 : 2,535 2002 2003 2004 2005 2006 2007 2008 2009 2010 Financial Community Presentation — May 12, 2077

  5. Slide 5: Operating Income

    SHERWIN | WILLIAMS. Operating Income* 1,002 — %toSales $ Millions 2002 2003 2004 2005 2006 2007 2008 2009 2010 * Consolidated Gross Profit Minus SG&A Expenses Financial Community Presentation — May 12, 2077

  6. Slide 6: Net External Segment ROS

    NetExternal Segment ROS* Sales Profit Paint Stores Group 4 381 620 14.2% Consumer Group 1,298 204 15.7% Global Finishes Group 2,092 124 5.9% Administrative 5 (269) - Financial Community Presentation — May 12, 2047

  7. Slide 7: Profit Before & After Tax

    950 5 850 | 750 650 | 550 | 450 350 $ Millions 250 | 150 | 50 | -50 PBT % to Sales PAT % to Sales * Excluding Cumulative Effect of Change in Accounting Principle in 2002. 497.2 310.7 2002 2003 2004 2005 #2006 2007 #=+».2008 2009 £2010 9.6 9.7 9.5 9:1 10.7 11.4 9.0 8.8 8.7 6.0 6.1 6.4 6.4 7.4 7.7 6.0

  8. Slide 8: Working Capital Ratio

    SHERWIN | >) WILLIAMS. Working Capital Ratio (Accounts Receivable + Inventory — Payables)/Sales 20% + 13.8% 15% + 12.5% 12.7% 10% | 5% + 0% - 2002 2003 2004 2005 2006 2007 2008 2009 2010

  9. Slide 9: Working Capital Components 2006-2010

    2006 2007 2008 #2009 2010 Accounts Receivable $865.0 $870.7 $770.0 $696.1 $916.7 Days 56 58 58 53 56 Inventories $825.2 $887.5 $864.2 $738.5 $917.7 Days 91 96 104 96 94 Accounts Payable $779.4 $740.8 $738.1 $674.7 $909.6 Days 67 65 68 68 69 Net Working Capital $910.8 $1,017.4 896.1 $759.9 $924.7 % t

  10. Slide 10: Working Capital Components 1Q2010 vs 1Q2011

    1Q2010 1Q2011 Accounts Receivable $797.8 $1,012.2 Days 50 54 Inventories $787.3 $1,064. 1 Days 106 117 Accounts Payable $705.3 $954.2 Days 70 69 Net Working Capital $879.8 $1,122.0 % to Sales 12.4% 13.9% Financial Community Presentation — May 12, 2047

  11. Slide 11: Net Operating Cash

    Net Operating Cash $ Millions = Net Operating Cash less Cap. Ex. & Dividends Net Operating Cash Uses of Cach 874.5 876.2 59.2 . ere 815.8 Acquisitions * Capital Expenditures 706.6 * Buy Back Stock 593.9 605.3 546.4 Manage Debt 470.5 oe / | | 425.0 Pay Dividends | | ra 2006 2007 2008 2009 2010

  12. Slide 12: First Quarter Free Cash Flow

    TE sem | 2010 2011 Net Operating Cash Lio. <I> Capital Expenditures <25.4> <27.0> Dividends <39.4> <39.0> Free Cash Flow <180.6> <219.2> Financial Community Presentation — May 12, 2047

  13. Slide 13: Free Cash Flow Four Years by Quarter

    & SHERWIN | aus WILLIAMS. Free Cash Flow Four Years by Quarter 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total Year = 2007 -168 273 218 223 546 2008 142 251 268 217 594 — 2009 176 318 285 178 605 2010 181 286 178 141 425 "2011 -219

  14. Slide 14: Total Debt and Debt to EBITDA

    83% 84% 88% 98% 113% 1148 1200- — 1000; an [es L 800- = c 600- & 400+ 200- 2006 2007 2008 2009 2010 UO Total Debt MEBITDA

  15. Slide 15: Long Term Debt Due Dates

    Due Date — $ Millions 3.125% Senior Notes 2014 $499.8 7.375% Debentures 2027 $129.1 Other $19.5* Total Long Term Debt $648.3 | Financial Community Presentation — May 12, 2047

  16. Slide 16: Interest Expense, Earnings Coverage and Debt to Capitalization

    SHERWIN WILLIAMS. Interest Expense, Earnings Coverage and Debt to Capitalization 80 4 ili 71.6 Interest Exp. (Millions) : 70.6 70 - 67.2 65.7 -@- Earnings Cov. (Times) 4 ve) 49.6 So 4 = ae 40.5 38.7 39.9 a0 S 40, > 973 Oct 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total Debtto Capitalization 28.0

  17. Slide 17: Rating Agencies

    Rating Agencies Standard & Poor’s Rating Services November 2010 - Upgraded Long-Term Rating from ‘A-’ to ‘A’ - Upgraded Short-Term Rating from ‘A-'2 to ‘A-1' - Stable Outlook Moody’s Investors Services December 2010 (No formal release issued) - Affirmation of Long-Term Rating at ‘A-3’ - Affirmation

  18. Slide 18: Treasury Stock Acquired 2001-2010

    SHERWIN WILLIAMS. Treasury Stock Acquired 2001-2010 Average Price Avg. Shares Shares PerShare TotalDollars Outstanding (000) 2001 6,700,000 23.45 157,087,968 156,894 2002 6,700,000 28.41 190,320,109 152,435 2003 7,977,000 30.28 241,543,552 147,005 2004 6,600,000 40.00 263,980,168 144,736 2005 8,076,

  19. Slide 19: Dividends Per Share 1979-2011

    SHERWIN | .| WILLIAMS. yet Dividends Per Share 1979 — 2011 $1.50 1.40! $1.40 | $1.20+ $1.04 1.00 $1.00 $0.90 4 82 $0.80 4 68 $0.70} 54.58 60.62. $0.60+ 5 $0.50+ _ 40 $0.40 32:38 saat oy 04-08-0808 10 He 10-401 04 ITT CTTE TR ss see ee ee ea Be ee Se Rene eh eel ee ea ee ea ee ae el eek eee ee 1979 1

  20. Slide 20: Highlighted Uses of Cash

    TE sem | Total Capital Expenditures 709.5 Cash Dividends TOUT Acquisitions 715.9 Treasury Stock Purchases 2,473.0 Highlighted Uses of Cash 4,680.1 | Financial Community Presentation — May 12, 2047

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