PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q2 2015 Earnings Presentation
18 slides from PPG Industries's earnings presentation, Jul 16, 2015
Slide 1: PPG Industries, Inc. – Second Quarter 2015 Financial Results
PPG Industries, Inc. – Second Quarter 2015 Financial Results Charles E. Bunch, Chairman and Chief Executive Officer Michael H. McGarry, President and Chief Operating Officer Frank S. Sklarsky, Executive Vice President and Chief Financial Officer Vincent J. Morales, Vice President Investor Relations
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained herein relating to matters that are not historical facts are forward-looking statements reflecting PPG’s current view with respect to future events and financial performance. These matters within the meaning of Section 27A of the Securities Act of 1933
Slide 3: Second Quarter 2015 Financial Highlights
Second Quarter 2015 Financial Highlights • Sales up 8 percent in local currencies Aggregate volumes up one percent year-over-year (excluding acquisitions). Acquisition-related sales (primarily Comex) contributed 7 percent. Currency translation reduced sales more than 7 percent (~$320 million).
Slide 4: PPG Quarterly Net Sales
PPG Quarterly Net Sales $4,250 +0% +1% 4,082 -7% +7% 4,100 $4,000 $3,750 Expected to be highest dollar impact of 2015 $3,500 ($ in millions) 2Q'14 Price Volume Currency Acq./Div. 2Q'15 PPG Y-O-Y Volume Trends Dollar/Euro Conversion Rate (excludes price, currency and acquisition impacts) (Quarter rat
Slide 5: Net Sales Volume Trends – Coatings Segments
Net Sales Volume Trends – Coatings Segments PPG Coatings Y-O-Y Regional Volume Trends 2Q 2015 Commentary Y-O-Y (versus 2Q 2014): (excludes price, currency and acquisition impacts) U.S. & Canada: 1Q’14 7% 2Q’14 4% Modest volume growth versus relatively strong prior year 3Q’14 comparable period. 5% U.
Slide 6: PPG Second Quarter Earnings Per Share
PPG Second Quarter Earnings Per Share Adjusted Earnings Per Diluted Share* Second Quarter Comments $2.00 CAGR – 25% Reporting segment updates included on succeeding slides. Aggregate items 1.67 embedded in segment reviews: Acquisition-related income benefits $1.50 1.42 Unfavorable currency tra
Slide 7: PPG Adjusted Earnings Per Share Trend
PPG Adjusted Earnings Per Share Trend* All figures have been recast based on PPG’s current business portfolio and reflect the June 2015 2:1 stock split YTD +20% $5.50 year-over-year $5.00 $4.88 $4.50 $3.83 $4.00 $3.50 $3.00 $2.92 $2.50 $2.44 $2.00 FY'11 Q1'12 Q2 Q3 Q4 FY'12 Q1 Q2 Q3 Q4 FY'13 Q1 Q2 Q
Slide 8: Performance Coatings Comex Acquisition – Updated Synergy Targets
Performance Coatings Comex Acquisition – Updated Synergy Targets* $MM (USD) 2Q14 2Q15 Chg % Original Updated Cost/Operational earnings synergies Net Sales 2,343 2,410 67 3% exceeding targets $30 - $40MM $45 - $50MM Income 373 411 38 10% Incremental revenue synergies from Margin % 15.9% 17.1% -- -- P
Slide 9: Industrial Coatings
Industrial Coatings 6.0 Regional Auto Production (million units) $MM (USD) 2Q14 2Q15 Chg % 5.5 Net Sales 1,450 1,411 -39 -3% Income 257 260 3 1% 5.0 Margin % 17.7% 18.4% -- -- 4.5 Select Net Sales Detail Total Volume Currency 4.0 Americas EMEA China 2Q Y-O-Y Change -3% +2% -7% Q2'13 Q2'14 Q2'15 Q3'1
Slide 10: Glass
Glass $MM (USD) 2Q14 2Q15 Chg % 50 Glass Segment Income ($MM) 40 37 Net Sales 289 279 -10 -3% 33 33 30 Income 236% 30 11 37 26 Margin % 3.8% 13.3% -- -- 20 11 10 Select Net Sales Detail Total Volume Currency 4 2Q Y-O-Y Change 0 -3% -3% -4% Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Second Quarter (Y-O-Y):
Slide 11: Balance Sheet and Cash
Balance Sheet and Cash 2Q Cash & Short Term Second Quarter 2015 Activity Investments ($MM) Second Quarter 2015 Cash Uses: $3,500 Capital Spending ~$90MM $3,000 $2,913 Dividends ~$100MM Share Repurchases ~$150MM $2,500 Strong cash position remains; $2,000 $1,781 continued focus on timely, d
Slide 12: Summary
Summary Record second quarter financial performance All-time record adjusted earnings per share up 18 percent despite unfavorable foreign currency translation impacts. Record coatings segment earnings benefit from strong operational focus. Cash deployment contributed to net sales, adjusted e
Slide 13: Additional Materials and Appendix
Additional Materials and Appendix www.ppg.com Thank you for your interest in PPG Industries, Inc. Contact Information: Investors: Scott Minder - (412) 434-3466 Media: Mark Silvey - (412) 434-3046
Slide 14: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 1st Quarter Reporting Period Continuing Discontinued Operations Operations Total PPG Net Income EPS Net Income EPS Net Income EPS Year 2015 Net Income/(Loss) Attributable to PPG as Reported $ 321 $ 1.16 $ 1 $ 0.01 $ 322 $ 1.17 Transaction-related costs 6 0.02 -- -- 6 0.02
Slide 15: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 2nd Quarter Reporting Period Continuing Discontinued Operations Operations Total PPG Net Net Income EPS Income EPS Net Income EPS Year 2015 Net Income/(Loss) Attributable to PPG as Reported $ 337 $ 1.23 -- -- $ 337 $ 1.23 Transaction-related costs 15 0.05 -- -- 15 0.05 Bu
Slide 16: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 3rd Quarter Reporting Period Continued Operations Discontinued Operations Total PPG Net Income EPS Net Income EPS Net Income EPS Year 2014 Net Income Attributable to PPG as Reported $ 377 $ 1.35 $ (6) $ (0.02) $ 371 $ 1.33 Transaction-related costs 2 0.01 - - 2 0.01 Pensi
Slide 17: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 4th Quarter Reporting Period Continued Operations Discontinued Operations Total PPG Year 2014 Net Income EPS Net Income EPS Net Income EPS Net Income Attributable to PPG as Reported $ 86 $ 0.31 $ (3) $ (0.01) $ 83 $ 0.30 Debt refinancing charge 200 0.72 - - 200 0.72 Trans
Slide 18: PPG Adjusted Earnings Per Share Trend Reconciliation
PPG Adjusted Earnings Per Share Trend Reconciliation Y-O-Y Change in Adjusted EPS from Continuing Adjusted EPS from Continuing Operations Operations Period 2011 2012 2013 2014 2015 2012 vs. 2011 2013 vs. 2012 2014 vs. 2013 2015 vs. 2014 1Q $ 0.44 $ 0.62 $ 0.69 $ 0.99 $ 1.18 $ 0.18 $ 0.07 $ 0.30 $ 0.