PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q2 2017 Earnings Presentation
12 slides from PPG Industries's earnings presentation, Jul 20, 2017
Slide 1: PPG - Second Quarter 2017 Financial Results
PPG - Second Quarter 2017 Financial Results Michael H. McGarry, Chairman and Chief Executive Officer Vincent J. Morales, Senior Vice President and Chief Financial Officer John Bruno, Director Investor Relations Information current as of July 20, 2017
Slide 2: Forward Looking Statements
Forward Looking Statements The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the Company. This presentation contains forward-looking statements that reflect the Company’s current views with respect to future events and
Slide 3: Second Quarter 2017 Financial Highlights
Second Quarter 2017 Financial Highlights Note: Current year and prior year financial results have been recast to present PPG’s former Glass segment as discontinued operations Net sales of $3.8 billion, up about 1 percent year-over-year • Aggregate sales volumes were flat versus the prior year period
Slide 4: PPG Second Quarter Net Sales
PPG Second Quarter Net Sales* $4,000 3,782 3,806 +0.2% N/C -1.7% +2.3% $3,750 $3,500 $3,250 ($ in millions) 2Q'16 Price Volume Currency Acq./Div. 2Q'17 PPG Y-O-Y Volume Trends** Foreign Currency Rate Trends vs. U.S. Dollar (excl. price, currency and acquisition/divestiture impacts) (indexed to Q2’15
Slide 5: Second Quarter Net Sales Volumes
Second Quarter Net Sales Volumes PPG volume performance by major coatings vertical vs. prior year and end-use market demand U.S. & Canada Europe / Middle Asia-Pacific Latin America East / Africa Aerospace At Market Above Market At Market At Market Automotive Refinish Above Market At Market At Market
Slide 6: PPG Second Quarter Adjusted Earnings Per Diluted Share
PPG Second Quarter Adjusted Earnings Per Diluted Share* Second Quarter Comments $2.00 Reporting segment updates included on 1.83 succeeding slides. Aggregate items 1.73 embedded in segment reviews: 1.58 • Significant raw material cost inflation has not been offset by initial selling price increase
Slide 7: Performance Coatings
Performance Coatings $MM (USD) 2Q16 2Q17 Chg % Marine Industry New Ship Deliveries 1,000 Net Sales 2,338 2,301 -37 -2% 800 600 Income 428 413 -15 -4% 400 Margin % 18.3% 17.9% -- -- 200 0 Select Net Sales Detail Total Volume Currency Q1 Q2 Q3 Q4 2014 2015 2016 2017a/e 2Q Y-O-Y Change -2% -2% -2% Sour
Slide 8: Industrial Coatings
Industrial Coatings 7.0 $MM (USD) Regional Auto Production Forecast (million units) 2Q16 2Q17 Chg % 6.5 6.0 Net Sales 1,444 1,505 +61 +4% 5.5 Income 292 264 -28 -10% 5.0 4.5 Margin % 20.2% 17.5% -- -- 4.0 Select Net Sales Detail Currency 3.5 Total Volume N. America EMEA China 2Q Y-O-Y Change +4% +3%
Slide 9: Balance Sheet and Cash
Balance Sheet and Cash Second Quarter Cash and Short Term Cash Deployment Investments ($MM) $3,500 Approximate cash uses ($MM): 2Q’17 YTD $3,000 $2,913 Capital Spending $75 $135 Dividends $102 $205 $2,500 Acquisitions $100 $165 Share Repurchases $0 $165 $2,000 $1,781 $1,669 $1,617 Share repurcha
Slide 10: Additional Materials and Appendix
Additional Materials and Appendix Thank you for your interest in PPG Industries, Inc. Contact Information: Investors: John Bruno – +1.412.434.3466 Media: Mark Silvey - +1.412.434.3046
Slide 11: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 2nd Quarter Reporting Period Continuing Operations Discontinued Operations Total PPG Net Income EPS Net Income EPS Net Income EPS Second Quarter 2017 Net Income Attributable to PPG as Reported $ 504 $ 1.95 $ (3) $ (0.01) $ 501 $ 1.94 Transaction-related costs 3 0.01 -- --
Slide 12: Regulation G Reconciliation
Regulation G Reconciliation Three Months Ended June 30, 2017 Income Before Income Taxes Tax Expense Effective Tax Rate Effective tax rate, continuing operations $671 $162 24.1% Transaction-related costs 5 2 37.9% Gain from the sale of Mexican Plaka business (25) (1) 3.2% Income from a legal settleme