Slide 1: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results July 20, 2023 Tim Knavish, President and Chief Executive Officer Vince Morales, Senior Vice President and Chief Financial Officer John Bruno, Vice President Investor Relations
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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. Fo
Slide 3: Second Quarter 2023 Financial Highlights
Second Quarter 2023 Operating Financial Highlights Cash Flow $536 MM Resilient portfolio mix + ~$370 MM Adjusted Strong demand in global aerospace and EPS automotive OEM $2.25 Improving raw material availability +24% Net ROS Segment Sales Margin Global industrial production activity slowing $4.9B 16
Slide 4: Organic Sales up 4%
Organic Sales up 4% Record second quarter net sales Net Sales ($ in millions) 6% $4,872 -2% Selling prices: Higher in all businesses YOY $4,691 Volumes: Impacted by softer global economic activity; slower recovery in China Foreign currency: Mexican peso appreciation offset lower Chinese yuan (minima
Slide 5: 2023 Operating Environment – Second Quarter Update
2023 Operating Environment – Second Quarter Update Positives • Aerospace recovery and order backlog 0 • Price – cost recovery momentum • Raw material availability • Global auto OEM production Watching • China recovery • U.S. consumer spending • U.S. labor climate • Europe energy price (winter) Chall
Slide 6: Performance Coatings
Performance Coatings ROS Segment 0 17.7% Strong results driven by aerospace and refinish Margin +250 bps YOY Net Sales ($ in millions) Organic Sales 2Q’23 3Q’23 6% 1% $3,041 Results Outlook $2,929 -3% Aerospace DD DD Refinish MSD MSD Architectural LSD LSD 2Q'22 Price Volume Currency 2Q'23 EMEA Archi
Slide 7: Industrial Coatings
Industrial Coatings ROS Segment 0 13.6% Sales growth driven by strong automotive OEM demand Margin +470 bps YOY Net Sales ($ in millions) Organic Sales 2Q’23 3Q’23 5% 1% $1,831 Results Outlook $1,762 -1% -1% Auto OEM DD MSD Industrial MSD MSD 2Q'22 Price Volume Currency Acquistions 2Q'23 and Packagi
Slide 8: Record Operating Cash Flow June YTD
Record Operating Cash Flow 2Q’23 Activity June YTD Operating cash flow ($ in millions) $621 $536 MM Operating cash flow ~$370 MM YOY $-136 $5.6 B $1.3 B Net debt Cash balance 2Q'22 YTD 2Q'23 YTD June 30, 2023 June 30, 2023 8 Note: Operating cash flow is cash from/(used for) operating activities. Cas
Slide 9: Full Year and Third Quarter 2023 Financial Projections
Full Year and Third Quarter 2023 Financial Projections Category Third Quarter 2023 Full Year Total organic sales (YOY) Up LSD % Adjusted EPS $1.85 - $1.95 per share $7.28 – $7.48 per share Raw material costs (YOY) MSD to HSD deflation Favorable foreign currency impact (YOY) ~$80 MM net sales Based o
Slide 10: PPG Announces New, More Ambitious 2030 Sustainability Targets
PPG Announces New, More Ambitious 2030 Sustainability Targets Validated SBTs 50% 30% 15% 25% 100% reduction in Scope 1 reduction in Scope 3 reduction in water of process waste to reuse, and 2 GHG emissions GHG emissions intensity at priority sites reduction in waste intensity recycle or recovery 50%
Slide 11: Appendix
Appendix
Slide 12: Reconciliation: Adjusted EPS
Reconciliation: Adjusted EPS $ in millions, except EPS Total PPG Second Quarter 2023 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 490 $ 2.06 Acquisition-related amortization expense 30 0.13 Business restructuring-related costs, net(b) 11 0.05 Transaction-related costs(c) 3
Slide 13: Reconciliation: ROS Segment Margin and Adjusted EPS Excluding Amortization
Reconciliation: ROS Segment Margin and Adjusted EPS Excluding Amortization $ in millions, except ROS % 2021 2022 2023 Performance Segment Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 ROS Margin, As Reported 16.6% 16.5% 14.8% 9.7% 14.4% 12.4% 15.2% 13.4% 10.9% 13.1% 15.0% 17.7% Net Sales $ 2,319 $ 2,749 $ 2,7
Slide 14: Thank You For Your Interest In PPG
Thank You For Your Interest In PPG Contact Information: INVESTORS: John Bruno phone: +1.412.434.3466 email: jbruno@ppg.com MEDIA: Mark Silvey phone: +1.412.434.3046 We protect and beautify the world® email: silvey@ppg.com 14