PPG Industries, Inc. · NYSE:PPG
PPG Industries — Investor Day (September 2021)
41 slides from PPG Industries's investor day presentation, Sep 15, 2021
Slide 1: PPG's Industrial Coatings Segment – Information Session
PPG's Industrial Coatings Segment – Information Session September 15, 2021
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: PPG speakers and attendees
PPG speakers and attendees Rebecca B. Liebert David S. Bem Vince Morales Executive Vice President, Senior Vice President Vice President Science and Technology and CFO and CTO 3 2021 PPG Investor Deep Dive
Slide 4: What we intend to share with you today…
What we intend to share with you today… Growth Aligned Differentiated Modernizing Productivity w/ Secular Themes Innovation Business Objective: Grow to $5B by 2025 Well Positioned for Leveraging One PPG: Driving Stability, Speed, Above Market Organic Growth Advanced Technology & Customer Intimacy 1
Slide 5: PPG Purpose:
PPG Purpose: 5 2021 PPG Investor Deep Dive
Slide 6: Automotive
Automotive End-Uses PPG Competitive Advantages & ESG Highlights 1) Leading positions across key product lines 2) Global leader in new factory start-ups 3) Improving customers’ sustainability (less water and energy consumption); enabling conversion to electrification 4) Innovation leader: delivering
Slide 7: Industrial Coatings
Industrial Coatings End-Uses PPG Competitive Advantages & ESG Highlights 1) Global leader in waterborne coatings 2) New product offerings (e.g., Coraflon® Platinum and ErgoLuxe ®) 3) Partner with customers for product innovation 4) Continued investment in powder coatings offering benefits of low was
Slide 8: Packaging Coatings
Packaging Coatings End-Uses PPG Competitive Advantages & ESG Highlights 1) Enables life cycle circularity of aluminum and metal packaging 2) Continued PPG investment in capacity for sustainably advantaged solutions 3) Support customers, and their efficiency goals with industry-leading technical serv
Slide 9: Specialty Coatings & Materials
Specialty Coatings & Materials End-Uses PPG Competitive Advantages & ESG Highlights 1) A portfolio of sustainably-driven, advanced technologies 2) A technology leader in high performance silicas 3) World-class quality and commercialization speed for energy-efficient OLED emitters 4) Leader in optica
Slide 10: PPG is Well Positioned for Above Market Growth
PPG is Well Positioned for Above Market Growth 10
Slide 11: Well-positioned in secular growth areas
Well-positioned in secular growth areas TRENDS & DRIVERS EV & Mobility • EV builds, urban mobility, environmental footprint • Sustainability advantages Powder Solutions • Zero waste • Work from home • Sustainable solutions Consumer Products • Shift from single-use plastics • Growth in touch-screens
Slide 12: OEM investments support forecasted growth
OEM investments support forecasted growth EV growth forecast Announced investments in EVs and FCVs IHS estimates EV builds to grow from Total Automotive OEM investments in EV’s 120 MM Vehicles ~4MM to >20MM by 2030 CAGR >23% – and X new EV model launches VW 100 12 23 Stellantis 1 4 6 BMW 80 GM 60 Da
Slide 13: PPG is expanding content per vehicle
PPG is expanding content per vehicle PRESENT FUTURE Traditional Electric Vehicle Coatings Content Battery Pack Battery Cell ~ $ 1 0 0 / Ve h i c l e ~ $ 2 0 0 / Ve h i c l e ~ $ 1 0 0 / Ve h i c l e 2025 EV Coating Total Addressable Market ~$2.5B 13 2021 PPG Investor Deep Dive
Slide 14: PPG's battery coatings deliver needed benefits
PPG’s battery coatings deliver needed benefits Challenges Value / Benefits: • Automotive OEM ENHANCED BATTERY • Manufacturing at scale PERFORMANCE Fire Protection • Customizable solutions • Lower applied cost IMPROVED • Battery performance BATTERY SAFETY • Occupant safety Dielectric Isolation • Cons
Slide 15: PPG's solutions for electrification
PPG’s solutions for electrification End-Use/Product Customer Battery (2025 Estimated Sales $MM) COST PERFOMANCE SAFETY Status 3 Pack Thermal Conductive 5 4 1 Fillers ●●● 1 Adhesives & Sealants ●●● 2 2 Corrosion & Impact 2 3 Protection ●●● Dielectric Protection 4 ●●● Cylindrical Battery Battery Fire
Slide 16: PPG Mobility pipeline continues to grow
PPG Mobility pipeline continues to grow Sealing & Thermal Fire Customer Binder Dielectric Corrosion Bonding Materials Protection Year in Review Progress OEM 1 OEM 2 200% increase in pipeline OEM 3 OEM 4 OEM 5 35 qualifications OEM 6 OEM 7 OEM 8 OEM 9 6 new products have been commercialized OEM 10 Ba
Slide 17: Application solutions for battery fire protection (BFP)
Application solutions for battery fire protection (BFP) PPG technology enables high efficiency and low labor costs HIGH APPLICATION: EFFICIENCY: LABOR: Robotic Applied Coating High Low BUILD VOLUME Hand Applied Coating Med Med Blankets, Mica Sheets Low High LOW photo credit: glt products PPG’s BFP p
Slide 18: BFP Application:
BFP Application: 18 2021 PPG Investor Deep Dive
Slide 19: Auto Parts: Total system solution provides organic growth
Auto Parts: Total system solution provides organic growth Complete layering system for Selling existing and EV/mobility Capturing higher content legacy products portfolios to Tiers supporting EV from modularization • Powder & liquid clearcoats • Battery back structure coatings • Latch, hinges and fa
Slide 20: Powder technology organic secular growth opportunity
Powder technology organic secular growth opportunity $10B segment and growing faster than the market driven by sustainability POSITIONING AND OFFERING • Three launches in ’21 to target architectural aluminum, shared Premium product mobility, battery electric vehicles applications innovation • Heat s
Slide 21: Consumer products organic secular growth opportunity
Consumer products organic secular growth opportunity Deliver against consumer needs in growing categories: Electronics, kitchenware, canned beverage POSITIONING AND OFFERING • Electronic materials performance: anti-fingerprint, anti-glare, OLEDs Product innovation • Waterborne liquid alternatives to
Slide 22: PPG packaged beverage can technology sustainability advantages
PPG packaged beverage can technology sustainability advantages POSITIONING AND OFFERING • The leading global supplier of non-BPA/non-bisphenol inside spray coatings • Water-borne technology; wide and versatile pack range Trusted solution inside the can • Achieved Cradle to Cradle® Gold Certification
Slide 23: Unlocking value for the customer through service capabilities
Unlocking value for the customer through service capabilities A multiple segment opportunity Coatings Optima Solutions Support Service Solutions UNDERSTANDING OF VALUE • Quality • Paint Shop • Advanced Problem Management Solving • Operations support • Chemical Management • Data and AI Appearance •
Slide 24: Recent acquisitions provide unique strategic value
Industrial Segment acquisitions provide unique strategic value Recent Acquisitions Strategic and complementary to growth areas: Powder, Consumer, Electronics, Auto Parts Revenue ~$160MM ~$260MM ~$40MM Enhances PPG’s ESG capabilities: reducing customers’ End Automotive Auto Parts, Markets Wheel c
Slide 25: Differentiated Innovation
Differentiated Innovation 25
Slide 26: Continuing PPG's legacy of innovation supports long-term growth
Continuing PPG's legacy of innovation supports long-term growth POSITIONING AND OFFERING • Safety EV & Mobility • Performance and functionality • Application at volume scale • Extended protection – UV durability, edge protection E-Coat/Corrosion • Expanded operating windows – low temperature cure Re
Slide 27: Increasing and adapting corrosion protection requirements
Increasing and adapting corrosion protection requirements Corrosion is a significant challenge for coatings customers MARKET CHALLENGES Corrosion-resistant primer protects against wear and friction • Coat mixed material substrates Zinc-rich coatings protect steel against • Increase infrastructure lo
Slide 28: New PPG electrocoat technology enables Charlotte Pipe
New PPG electrocoat technology enables Charlotte Pipe Hitting hard to reach places Partnered with customer to tailor a new electrocoat technology and process Created a high performance drain pipe that addresses a significant market gap 28 2021 PPG Investor Deep Dive
Slide 29: Charlotte Pipe:
Charlotte Pipe: 29 2021 PPG Investor Deep Dive
Slide 30: PPG powder coating for the extrusion industry
PPG powder coating for the extrusion industry Coraflon® Platinum Powder is a new, innovative addition to PPG’s world-class powder coatings for architectural aluminum extrusions. One-coat With High Transfer Efficiency Improved Corrosion Performance Available in a wide range of colors, glosses, anodiz
Slide 31: PPG is deploying digital tools to increase speed and agility
PPG is deploying digital tools to increase speed and agility POSITIONING AND OFFERING • Connecting with our customers to differentiate their products Color Styling • Style color in real-time • Digital color fingerprint Color Matching • Accelerate matching capabilities • Reduce time to specification
Slide 32: Changing the paradigm with digital color
Changing the paradigm with digital color COLOR COMMUNICATION Color is key decision factor for consumers Color virtualization and rendering, AI applied to paint formulation 88% of respondents say color is a key deciding factor when buying a car, 99% in China1 64% said they would change manufacturers
Slide 33: Digital Color:
Digital Color: 33 2021 PPG Investor Deep Dive
Slide 34: PPG continues to plant seeds for the future
PPG continues to plant seeds for the future We have developed multiple technologies for additive manufacturing(3D printing) POSITIONING AND OFFERING Coatings for 3D • PPG’s primer promotes coating adhesion and smooths printed parts surfaces for thermoplastic parts Electrocoat for • PPG’s core electr
Slide 35: PPG's product sustainable attributes provide needed benefits
PPG’s product sustainable attributes provide needed benefits Customer Challenges PPG Benefits: Energy/Carbon Management • Low temperature cure reduces energy consumption Human Safety/ • Battery products enable EV performance, reduces energy use Energy/Carbon Wellness Management • Product life extens
Slide 36: PPG is Increasing Productivity in New Ways
PPG is Increasing Productivity in New Ways 36
Slide 37: PPG's operations roadmap to support growth
PPG’s operations roadmap to support growth Continuous Improvement •Portfolio Optimization Advanced Technologies • Lean Six-Sigma • Platform consolidation • In-line analytics • Standard work • Modular formulations • Digital quality control • Built-in quality • Velocity optimization • Advanced manufac
Slide 38: Advanced manufacturing technologies - modular factory
Advanced manufacturing technologies - modular factory • Acquired technology; further deployed across PPG • Improved production efficiency, quality and sustainability • Fully enclosed and automated, and powered by AI quality algorithms • Current: Germany – 4 units, China – 2 units, Mexico – 1 unit 38
Slide 39: PPG positioned for multi-year growth
PPG positioned for multi-year growth Key Takeaways Industrial Segment Margin • PPG’s product breadth creates significant value Productivity • Innovation leader in advanced product technologies enabling sustainability and consistent growth Innovation • EV-related growth provides content expansion opp
Slide 40: Notes:
Notes: 40
Slide 41: We protect and beautify the world
PPc We protect and beautify the world”